CONGRESSIONAL RECORD -- SENATE

May 7, 19 65

Page 9850

HEARINGS ON U.S. BALANCE OF PAYMENTS

Mr. MUSKIE. Mr. President, in accordance with expectations, which I reported to the Senate a few days ago, printed copies are now available of the hearings conducted by the Subcommittee on International Finance of the Banking and Currency Committee on the continuing deficits in our balance of payments and the resulting outflow of gold. Several distinguished officials of the Government, a number of outstanding economists expert in this field, and representatives of business and banking appeared before the committee. The purpose of the hearings was stated to educate the members of the committee, the Congress, and the general public as to the nature and causes of the problem and as to proposed measures for dealing with it.

Hearings began with statements by the Government officials -- Mr. Dillon, the then Secretary of the Treasury, Mr. Connor, the Secretary of Commerce, Mr. Martin, the Chairman of the Federal Reserve, Mr. Murphy, then Under Secretary of Agriculture, Mr. Griffith Johnson, Assistant Secretary of State, Mr. Hitch, Assistant Secretary of Defense, Mr. Bell, Administrator of AID, and Mr. Linder, President and Chairman of the Export-Import Bank. These officials described the general nature of the problem, explained the existing governmental programs that affect it, and discussed the new administration programs for dealing with it.

Economists then discussed the basic elements and principles involved and set forth views as to means of handling the problem of the deficit. The representatives of banking and business also presented their views as to the nature of the problem and measures for dealing with it.

Following statements of the witnesses, significant points were further developed in questioning by members of the subcommittee. In addition, the record of the hearings contains a number of statements, studies, and data developing particular points, as well as various public statements bearing on the subject by distinguished public officials and experts.

It is contemplated that hearings will be resumed in the near future. As I announced in the Senate earlier, Dr. Edward M. Bernstein, who has been chairman of a committee of experts which has recently completed a review of balance-of-payments statistics and prepared a report recommending improvements, and who is an outstanding expert on international financial economics, is scheduled to appear on May 17. Other businessmen, bankers, and other experts in this field will be requested to appear when the schedule of the committee permits.