Monday, Aug. 08, 1955
ACHIEVEMENTS
The 84th Congress, first session, was conditioned by a political fact: its slim Democratic majority had to cope with the immense popularity of a Republican President. Although the Congress worked hard, it had no direction of its own; it could merely attempt, by trimming and modifying, to place a Democratic stamp on the Eisenhower program. The results:
Foreign Policy. Congress went all the way with the President. The Senate gave Ike authority to intervene in the area of Formosa. Overwhelmingly approved were the treaties for German rearmament, the end of Austrian occupation, and mutual defense with Southeast Asia and Nationalist China. Congress also gave the President strong bipartisan support on his journey to Geneva.
Foreign Trade. With northern Democrats supporting the President's program, reciprocal trade legislation was expanded and extended for three more years. But, in perhaps the most significant development of the 84th Congress, many southern Democrats abandoned their traditional free-trade position, bowed to the South's new industrial interests and voted with the protectionist bloc.
Foreign Aid. Mutual Security funds were authorized to the extent of $2.7 billion, about $563 million less than the Administration had requested.
Armed Forces. The draft was extended for four more years; a new reserve plan was established. Under the new program, every young man will have a long-range obligation for military service, but can avoid the draft by signing up at the age of 17 to 19 for six months' training, 7 1/2 years duty in the ready reserve. In five years, the ready (continuously trained and organized) reserve will go up from 800,000 to 2,900,000 and the second-line standby reserve will go up from 220,000 to 2,000,000. In other legislation, pay raises averaging 6.7% were provided for career servicemen (estimated annual cost: $745 million). The Administration's cutback in the Army and Navy, and increase in Air Force manpower, were approved. After a long and angry hassle. Congress authorized $20 million to start construction of the new Air Force Academy.
Taxes. Present excise taxes and the 52% corporation tax rate were extended until next April. A Democratic move to cut individual income taxes was defeated.
The Economy. The nation's minimum wage was raised from 75-c- to $1. The debt limit was set at $281 billion for another year.
Government Salaries. Wages of more than 1,000,000 civil servants were increased by an average 7 1/2% (annual cost: $328 million); postal workers' salaries were raised by an average 8% (annual cost: $166 million). Senators and Representatives hiked their own pay to an annual $22,500, raised the salaries of federal judges and U.S. attorneys (annual cost, $6,000,000, with Supreme Court justices heading the list at $35,000).
Agriculture. The interest on farm-disaster loans was reduced from 5% to 3%. Democratic efforts to reinstate high, rigid farm supports were beaten.
Appropriations. A total of some $52.2 billion, about $1.8 billion less than the Administration had requested, was appropriated for the next year. Biggest chunk: the Defense Department's $31.8 billion.
FAILURES
Highways. The highway bill was defeated simply because no one could agree on how the program should be financed.
Hawaii & Alaska. Killed in the House, statehood for the territories probably is further from realization than at any time in a decade.
Immigration. Urgently necessary amendments to the cumbersome Refugee Relief Act were pigeonholed in the Senate Judiciary Committee.
Health. Most of the Eisenhower health program, including its health-reinsurance feature, got stuck in Congressional committees, partly because the Administration itself made no great effort to put the program across.
Schools. Held up in committees for many months, the Administration's school-construction program gathered dust too long for any action to be taken.
Gas. A controversial bill to exempt natural-gas production from federal regulation was passed at the last minute by the House, but the Senate put off consideration until next year.
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