August 19, 197 4
Page 28894
Mr. JAVITS. Mr. President, I am a cosponsor of the Muskie-Stevenson substitute. I would like to add a few thoughts for the information of the Senate on this subject.
For one, Mr. President, I think the committee is entitled to the thanks of all of us. We are deeply indebted to the committee which acted very responsibly and very promptly in giving us a vehicle for the development of the ideas which are now before us.
Without such expeditious committee hearings and action by Senator SPARKMAN and Senator TOWER, we would still be picking our way through the underbrush. Often around here we miss the forest for the trees.
The fact is that a monitoring agency is an essential element in any anti-inflation effort which is to be renewed at this time outside of the old time medicine, which is not working. It is not working because it is too restrictive. It is not working, on the one hand, in that it is dampening business very seriously and is harming small business.
At the same time, it results in a nondiscriminating process because it hurts everybody without in any way selecting what is essential that is helpful in terms of the total economy, which it is unable to do.
It is simply a blanket suffocation of the whole economy.
So, first and foremost, we will have a monitoring agency, and for this we should be deeply indebted to the Senate committee which acted so very promptly.
Now, as to the addition of various ideas, I think they are necessary, but again I repeat, the committee has done the essential point, which is to bring us the vehicle.
I believe that it is very important that there be some kind of a cooling-off period, if we are really to have a monitoring agency with some muscle. It is not price and wage control, either standby or actual, but if we are going to expose something to the public which the public may correct by the sheer impact of public opinion, and we know in this country that is extremely potent, we are not going to accomplish it unless we give the industry concerned, or the consumer or trade union concerned, or the group of workers concerned, an opportunity to consider the public impact.
The only way that can be done and not simply make it an accomplished factor and engage in a postmortem about it for effective purposes is to have some kind of a cooling-off period.
That is what Arthur Burns, who has been a very important figure in this fight has urged upon us — very essentially conservative and a very important financial leader — and that is what I think the situation requires.
So it is very distinct and prudent that this particular measure developed by Senator MUSKIE and Senator STEVENSON contains the standstill period.
Now, they have got 2 periods of 45 days each. It could have some other application, there is no magic about any number of days, but that is their idea and I am with them in terms of this being an essential part of what we desire in this monitoring agency field.
Second, and very importantly I believe, is subpoena power. I believe that, again, in order to have a little muscle they have to be able to bring people up and require them to testify and to give information. Otherwise, having been at this business a rather long time, I know the practicalities are that we have to dig around for witnesses who want to come and they are not necessarily either the best informed or the kind from whom we can develop by examination and cross-examination a case which will impress the public either way.
Now, those are the two critically important elements, as I see them, which are added by the substitute.
It has certain other advantages. It requires the monitoring agency itself to evaluate the reasonableness of wage-price increases and whether or not they have a material effect on inflation.
I find that desirable. It is somewhat assimilated to my own experience in the labor field where if we really want mediation to be effective we have to give the mediator ultimately the right to disclose what his recommendations have been. That certainly has to be done before there is an open break between the parties.
Another aspect on the substitute which I like very much is that it has adequate funding.
When I appeared before the committee, with the very kind and gracious consideration of Senator SPARKMAN and Senator TOWER, that was one of the points I made.
With a million dollars, we can get 36 professionals. That is not enough to administer a monitoring agency in the State of New York, let alone the United States, and I think their figure of $5 million is very low. I think $10 million would be the right figure for this purpose, as it is assumed, and I have had estimates of this, that about 300 people are required to really do this job in a way which will serve the people of the United States.
So, Mr. President, to sum up, the fundamental big issue is already dealt with by the committee, to wit, we should have a monitoring agency and for that I think we all owe a debt of gratitude because of the speed with which it was turned out by Senator SPARKMAN and Senator TOWER.
The addition of the concepts of the Muskie-Stevenson substitute of a cooling-off period and of subpoena power, in my judgment, are indispensable, and the additional points which they make as to giving the monitoring agency the authority to evaluate reasonableness in terms of wage-price, and an adequate sum of money to do the job, make that substitute additionally attractive.
It is for that reason, Mr. President. that I went on it as a cosponsor, and I believe those are very persuasive reasons which should induce the Senate to substitute it for the committee bill.
I am sure that Senator MUSKIE and Senator STEVENSON will be the first to say that if their measure is substituted, it is still the committee bill, because the fundamental idea brought before us as promptly as it was brought before us is the conception of the committee as it is led by Senator SPARKMAN and Senator TOWER.
I yield the floor.
Mr. MUSKIE. Mr. President, I would like to express my appreciation to the distinguished Senator from New York for his continuing efforts in this fight against inflation. He gave us much support last spring, when we undertook to continue economic monitoring authority. As always, he brings thoughtful arguments to his cause.
Mr. JAVITS. I thank my colleague very much.