1939: United States

Economic Survey.

From the economic point of view the year 1939 may be divided definitely into two periods. The first, extending from the beginning of the year until early summer, marked a steady decline in most phases of the nation's business activities. The second, beginning in the early summer, marked a reversal in the trend, a reversal undoubtedly speeded by the beginning of the European war early in September. By the year's end certain lines of business activity were approaching all time records.

Gauged by Barron's Index (reflecting distribution and building activity as well as industrial operations) business in the aggregate in the last week in November stood at 88.2 relative to an estimated normal. This compares with the year's high up to that time of 88.4, the highest level since August 1937. Of the various aspects of the economic scene, industrial production was the most encouraging. Using the years 1923-1925 as 100, the indices of Barron's, the Federal Reserve Board and other organizations show production at 10 per cent or more above those years. The combined business index of the New York Times, for example, was 115.6 for the week. Increases were particularly evident in the output of iron and steel, flour, sugar, meat products, petroleum and electrical power. Flour production rose in October to near record levels and at meat-packing establishments activity was at the highest in several years.

While increases were evident in almost all lines, they were not so spectacular as in those named. The whole movement of industrial production upward was symbolized in the manufacture of steel. Operations in that industry, which in early December reached 95 per cent of capacity were at record high on the basis of actual output. Though new business in steel was leveling off at the end of the year, there was every expectation of continued high production. One of the chief markets which tended to maintain this high production was automobile manufacturing. Despite the 55-day Chrysler strike, automobile production during the last quarter approached all time records for that period. The settlement of the strike in the last week in November quickly raised output to a level of 100,000 units a week. In the metal industries, spectacular production was also evident in machine tool building and airplane manufacturing.

Increased industrial production had its counterpart in larger sales, particularly in the early autumn. Manufacturers' October sales were up 2.7 per cent from September and 24.9 ahead of October 1938. Increased sales were reflected in decreased inventories of manufacturers. The value of inventories at the beginning of November was lower than at any time since 1936. Inventories in November were equivalent to 2.6 months' shipments compared to 3.5 a year previous. Increased business activity was also reflected in a sharp upturn in prices in September. These leveled off, however, and at the end of 1939 were about where they had been a year previous. In October the New York Federal Reserve Bank put their price index at 155 (1913 = 100), exactly the same figure as in October 1938. Industrial commodities tended to hold their advanced prices, but foodstuffs declined after their early September spurt.

From the beginning of the summer employment took a marked turn upwards. According to the Bureau of Labor Statistics factory employment in October registered a fifth consecutive monthly advance, rising to 103.3 (1923-1925 = 100), compared with 93 in May and 92.4 in the previous October. Payrolls jumped to 101.3 against 85.0 in May and 84.2 in October 1938. The chief credit for these gains went to the durable goods industries. In October the aircraft industry, for example, reported a 6.2 per cent increase in employment for the month, making the thirteenth consecutive monthly increase. During the period from mid-October to mid-November further gains took place, despite the fact that normally at that time there is a decrease of about 1.8 per cent in employment. An addition of 25,000 workers were added to industry's payroll instead of the customary decrease of about 160,000. Between May and November, it is estimated, an increase in the number of factory workers of about 850,000 took place. In all non-agricultural industries there was a gain during these months of about 1,600,000 workers. Encouraging as was this upturn in employment, there still remained millions out of work. The American Federation of Labor estimated the number as high as 10,000,000. Nor was there much hope that there would be a significant drop in welfare expenses.

Summarizing business trends on Nov. 30, the United States Department of Commerce commented: 'The index of income payments—a comprehensive indicator of the purchasing power of the consumer derived from current activity—was 88.3 (1929 = 100) for October, up 1.6 from September. At the October figure this approximates an annual income of about 72,000,000,000 dollars, or slightly below the 1937 total. While living costs have increased since August, the rise has been much less than the advance in consumer incomes. Factory employment . . . has risen much faster than is usual in the fall. The adjustment index for October was 101 (1923-1925 = 100), up 5 points since mid-August. Farmers' income in October increased somewhat less than the seasonal expectation after the marked advance in September, but cash receipts from marketings were 5 per cent higher than in October 1938.'

SEVENTY-SIXTH CONGRESS

After a life of seven months and two days, the first session of the Seventy-Sixth Congress came to an end on Aug. 5. The session opened in a spirit of amity. As it proceeded, however, bitterness developed as anti-New Deal Democrats coalesced with Republicans to upset important Administration measures. The President in his annual message at the opening of Congress had stressed the need of defense and increased appropriations for it. On this point he encountered little opposition in Congress. The rest of his speech was largely devoted to justifying the need of a continual spending program for relief, public works and aid in promoting recovery. As this would mean for the fiscal year 1940 a tenth annual deficit, his program met considerable opposition from the start.

What the spending program would actually mean, was revealed in the budget message received the next day. It proposed for the fiscal year ending July 1, 1940, a budget of $9,000,000,000, of which recovery and relief were allotted $2,266,165,000. Of this the WPA would account for $1,500,000,000. This expenditure, the President insisted, was necessary if the annual national income was to be increased to $80,000,000,000 a year, the point where it had been in 1929. Although Congress was at first restive under the request for larger expenditures, it provided before the session was over for expenditures of some $13,344,000,000, an amount much larger than the President had originally asked for. The chief legislation of the first session of the Seventy-Sixth Congress follows:

Agriculture.

The Agricultural Appropriation Act (approved June 30, 1939) appropriated $1,194,178,633 for the Department of Agriculture and the Farm Credit Administration. The principal items included $499,560,000 to carry into effect the Soil Conservation and Allotment Act of 1936 and the Agricultural Adjustment Act of 1938; $225,000,000 for parity payments to producers of wheat, cotton, corn, rice and tobacco; $113,000,000 for disposal of surplus commodities; $47,975,000 to carry into effect the provisions of the Sugar Act of 1937; $40,000,000 to carry into effect the Bankhead-Jones Farm Tenant Act of July 22, 1937; $28,150,000 for the Farm Credit Administration including $15,000,000 for farmers' crop production and harvesting loans and $9,500,000 for the Federal Farm Mortgage Corporation; $191,000,000 for the Bureau of Public Roads; $23,726,584 for the Soil Conservation Service and $10,000,000 for forest roads and trails. Other agricultural legislation included the Insect Pest Act (June 13), appropriating $1,750,000 for the control of outbreaks of insect pests, and the Packers Act Amendment, amending Section 310 of the Packers and Stockyards Act of 1921 to make mandatory marketing rates and charges prescribed by the Secretary of Agriculture, to be collected from livestock producers. (See also AGRICULTURE.)

Banking.

Only one banking act was passed during the session, the Glass Federal Reserve Note Act (approved June 30) which extends from June 30, 1939, to June 30, 1941, the period within which the Board of Governors of the Federal Reserve System may authorize the Federal Reserve Banks to accept direct obligations of the United States as collateral security for Federal Reserve notes. Another Act, sponsored by Senator Glass, which would have lifted the ban on interlocking directorates until 1945, was vetoed by the President.

Budgetary.

The Treasury-Post Office Appropriation Act (approved May 6) appropriated $909,627,810 for the Treasury Department and $790,987,244 for the Post Office Department. By far the largest item in the Treasury Budget was $580,000,000 for the old-age reserve account of the Social Security Act. Among the items of the Post Office Department were $101,990,000 for railroad transportation and mail messenger service and $17,930,000 for inland transportation of mail by aircraft.

The Independent Offices Appropriation Act (approved March 16) granted $1,678,847,840 for the Executive Office and various independent executive bureaus, boards, commissions and offices. The most important of these many appropriations from the point of view of size were $561,098,000 for the Veterans Administration; $350,000,000 for the Social Security Board; $295,000,000 for the Civilian Conservation Corps and power to the Maritime Commission to carry out the Merchant Marine Act of 1936 to an amount not exceeding $230,000,000. The act prohibited the use of any part of any of the appropriations to pay compensation to any officer or employee of the Federal Government whose post of duty is in continental United States unless such person is a citizen or has filed his intention of being one.

The Interior Appropriation Act (approved May 10) carried $172,604,765 for the Department of the Interior. Besides appropriations for the various commissions and officers of this department the appropriations included $35,137,375 for the Bureau of Indian Affairs, and $39,700,000 for the Bureau of Reclamation. The latter included $17,290,980 for vocational education; $17,523,282 for the National Park Service; $23,000,000 for the Grand Coulee project in Washington and $5,000,000 for the Colorado River project in Texas.

The State-Justice-Commerce Appropriation Act (approved June 29) carried $122,177,220 for these three departments. The major items for the State Department were $2,192,000 for the office of Secretary of State; $650,000 for salaries of ambassadors and ministers; $800,000 for the United States portion of the flood control project on the lower Rio Grande and $500,000 for Rio Grande canalization. Major items for the Department of Justice included $7,000,000 for the Federal Bureau of Investigation; $2,033,520 for the Attorney General's office and $1,300,000 for the enforcement of anti-trust and other laws. The largest appropriations for the Department of Commerce were $45,000,000 for beginning the work of taking the census of 1940; $11,627,000 for the Bureau of Lighthouses; $4,667,500 for the Census Bureau and $2,705,000 for the Coast and Geodetic Survey.

The Labor Department Appropriation Act (approved June 29) granted the Labor Department $30,536,170 for the fiscal year.

In the Legislative Appropriation Act (approved June 16) Congress granted for its own expense $21,851,779.

In addition to Relief Deficiency Acts, which will be mentioned later, Congress passed four Deficiency Appropriation Acts. The first (approved March 15) was for $28,765,041; the second (approved May 2) was for $157,619,059 and the third (approved in August) was for $185,176,066. The chief item in the last named was $119,599,918 to enable the Secretary of the Treasury to restore the amount of the capital impairment of the Commodity Credit Corporation. There was also an Urgent Deficiency Appropriation Act (approved June 30) for $3,099,377, about two-thirds of which went to the Federal Communications Commission. (See also BANKS AND BANKING; PUBLIC FINANCE; WORLD ECONOMICS.)

Commerce and Trade.

By the Commerce Under-Secretary Act (approved June 5) Congress created the post of Under-Secretary of Commerce with a salary of $10,000, the incumbent to be appointed by the President with the advice and consent of the Senate. It also provided for the elimination of one of the two assistant-secretaries of commerce. By the Export-Import Bank Extension Act (approved March 4) the existence of both the Commodity Credit Corporation and the Export-Import Bank was extended from June 30, 1939, to June 30, 1941. The act increased from $500,000,000 to $900,000,000 the amount of bonds, notes, etc., which the Commodity Credit Corporation might have outstanding. It also limited the outstanding obligations of the Export-Import Bank to $100,000,000. By the 'Hot Oil' Extension Act (approved June 29) Congress extended for three more years—until June 30, 1942—the 'Hot Oil' Act of Feb. 22, 1935, which regulates interstate and foreign commerce in petroleum and its products.

Foreign Service.

The Foreign Service Personnel Act (approved April 24, 1939) allows additional compensation to clerks where living costs are excessive, empowers the President to transfer ambassadors and ministers from one post to another on the same basis as other Foreign Service officers, and revises the structure of the Foreign Service retirement system. The Eaton Foreign Service Act (approved July 19) amends the Foreign Service Classification Act of 1931 so as to broaden the opportunities of Foreign Service officials to obtain retirement benefits, particularly ambassadors or ministers transferred from foreign posts to the State Department. The Army-Foreign Service Act (approved July 15) allows only retired officers of the army to accept military appointment in the Foreign Service of the Government.

Government Reorganization.

After the Seventy-Fifth Congress had turned down the President's request for power to reorganize the Government on the ground that it conferred upon him too much power, the Seventy-Sixth Congress consented to do something about this problem. By the Government Reorganization Act (approved April 3) it authorized the President to investigate the organization of all agencies of the Government and in the interests of economy and efficiency prepare a comprehensive reorganization plan. This plan must be submitted to Congress and may go into effect sixty days after submission unless disapproved during this period by Congress in a concurrent resolution. Other limitations were placed on the President. He may not transfer or abolish an executive department or any of its functions. He may not transfer, abolish or consolidate numerous commissions, boards and functions of the Government specified in the act. Plans must be submitted before Jan. 21, 1941. On the other hand it authorized the President to appoint administrative assistants not to exceed six at $10,000 per year to perform such duties as the President may prescribe. By a subsequent act Congress permitted two plans submitted by the President on April 25 and May 9 to go into effect on July 1, despite provisions of the Government Reorganization Act of 1939. (See LAW AND LEGISLATION.)

Housing.

The Steagall National Housing Act (approved June 3) made numerous amendments to the Wagner Steagall Housing Act of 1937. It extended until 1941 the authority of the administrator to insure modernization loans which otherwise would have expired July 1, 1939. The 1937 law limited amounts of loans covering repairs which might be insured to $10,000 and on new structures to $2,500. Under the amendment the limit for both classes of loans is fixed at $2,500 and the term of rehabilitation loans limited to three years and thirty-two days. The administrator may make an annual premium charge for insurance of not more than three-fourths of one per cent. Another amendment allows the FHA, with the permission of the President, to extend insurance obligations from the existing $3,000,000,000 to $4,000,000,000. There are numerous provisions regarding the placing of mortgages, the most important probably being the reduction of interest rates from five per cent to four and one-half per cent. A provision regarding labor prevents insurance of any mortgage on rental housing or multi-family dwellings, unless the contractor certifies that labor employed in construction has been paid not less than the prevailing local wage scales as determined by the Secretary of Labor. A Housing Deficiency Act (approved March 4) granted the Federal Housing Authority $2,500,000 for administrative expenses for the fiscal year 1939.

Monetary.

Although there was strong opposition to continuing the wide monetary powers exercised by the President, these were continued virtually unchanged by the Monetary Act (approved July 6). Under this act the powers of the President and Secretary of the Treasury, with respect to the stabilization fund authorized by Section 10 of the Gold Reserve Act of 1934, were extended until July 30, 1941. A similar extension of the powers of the President under Section 43 of Title III of the Agricultural Administrative Act of 1933, was granted. Among these powers were the right to alter the metallic content of the dollar and acquire newly mined domestic silver for coinage. The Act provided that the Government mints shall receive for coinage all silver mined and presented before July 1, 1939, and coin this silver into standard silver dollars, retaining 45 per cent as seignorage charge. The seignorage silver is to be retained as bullion in the Treasury or coined into silver dollars. The Act requires that a report of the annual audit of the Stabilization Fund shall be submitted to Congress as well as to the President. (See also MEXICO.)

National Defense.

Never in peace time had a Congress been so lavish in voting appropriations for Army and Navy and in interesting itself in the problem of national defense. This had been the keynote of the annual Presidential message, and there were few in Congress who opposed. Added impetus was given to the program of defense by the darkening skies of the international situation as it developed during the spring and summer.

The first of the many acts passed for national defense was the National Defense Act (approved April 3). Among its provisions were those increasing the serviceable airplanes in the army to 6,000, authorizing the Secretary of War to detail army personnel as students in technical and other educational institutions, increasing the commissioned strength of the army from 14,659 to 16,719 and the basic allotment of enlisted men in the army air corps from 21,500 to 45,000. It authorized $23,750,000 for rehabilitation and defense of the Panama Canal and it increased the 'educational orders' for munitions and war accessories from $2,000,000 annually to $34,500,000 for the next three years to be followed by $2,000,000 annually for four years. It provided for a 12 per cent limitation on profits in all contracts for the purchase of aircraft for the army.

In the Military Appropriation Act (approved April 26) Congress granted $508,789,824 to the army for the fiscal year and in addition authorized the Secretary of War to enter into contract obligations for $40,205,938. The most significant aspect of these appropriations was the large amounts allotted for the upkeep and increase of the air force. In a Supplemental Military Appropriation Act (approved July 3) Congress made additional grants of $223,398,047 for the military establishment for the fiscal year. Additional to the above appropriations were those carried in the War Department (Civil) Appropriation Act (approved June 28). This granted $305,188,584 for the civil functions of the War Department. The largest items here were $133,000,000 for general flood control work; $96,000,000 for the preservation and maintenance of existing river and harbor works; $39,000,000 for flood control along the Mississippi and its tributaries and $24,774,924 for the Panama Canal and the Canal Zone.

Believing that the national resources of the United States in certain war materials were deficient or insufficiently developed to supply war needs, Congress passed the Strategic War Materials Act (approved June 7). It ordered the Secretaries of War, Navy and the Interior to determine what these materials were. For the procurement, transportation, maintenance, rotation and storage of materials covered in the act, $100,000,000 was appropriated to be spent during the fiscal years 1939-1943. To survey the existing resources and devise methods of developing needed materials, further appropriations were made to the Bureau of Mines and the Geological Survey. To increase available personnel for the air force, a Civilian Pilot Training Act (approved June 27) was passed. The Civil Aeronautics Authority was authorized to train pilots. Training was not to be denied on account of race, creed or color and at least five per cent of the students selected for training must be from applicants other than college students. An appropriation of $5,675,000 for the fiscal years 1939-1940 was made and the sum to be spent was not to exceed $7,000,000 during any subsequent fiscal year. The Act expires on July 1, 1944.

Because of the large appropriations during the preceding two years, the grants to the Navy, while enormous, were not as great as might be expected. The Naval Appropriation Act (approved May 25) granted $773,049,151. Of this $210,519,217 went for pay, subsistence and transportation of personnel; $207,593,712 for construction of vessels previously authorized and for the commencement of two battleships, two cruisers, eight destroyers, eight submarines, two seaplane tenders and one repair ship; $82,798,000 for naval aviation and large amounts for public works and utilities under the Bureau of Yards and Docks. A Naval Air Base Act (approved April 25), with appropriations not to exceed $65,000,000, directed the Secretary of the Navy to establish, develop and increase naval aviation facilities. This act is particularly interesting because of its extension of defense plans in the Pacific, carrying as it does appropriations for aviation facilities in the Midway, Wake, Johnston and Palmyra Islands, and at Kodiak and Sitka, Alaska. The above act was supplemented by the Naval Public Works Act (approved June 2) authorizing the Secretary of the Navy at a total cost of $36,000,000, to proceed with the construction of 47 named public works projects in Alaska, Canal Zone, Cuba, Guam, Hawaii, Samoa, Virgin Islands and in various parts of continental United States.

Numerous other acts covered other phases of naval defense. The Naval Auxiliary Vessel Act (approved April 26) amended an act of July 30, 1937, which had authorized the President to construct auxiliary vessels at a cost of $50,000,000, so that he might now acquire and convert as well as construct. Several acts covering the Coast Guard created a Coast Guard Reserve, increased the number of commissioned officers, and provided for retirement of enlisted personnel after twenty years' service.

Other legislation for National Defense included the Aircraft Parts Secrecy Act (approved July 13) allowing the Secretary of War, when necessary for the public interests, to purchase materials without advertising; a Panama Defense Act (approved July 20) appropriating $1,500,000 for expenses which the President may deem necessary to improve the position of the United States in Panama; a Battleship Overhaul Act (approved July 25) authorizing repairs for the battleships Tennessee, California, Colorado, Maryland and West Virginia and the purchase of two ships from the Grace Line; and a Military Reservation Act (approved July 26) authorizing additional land for military purposes in many camps in the United States. (See also AVIATION; PUBLIC FINANCE.)

Political.

Rumors had circulated and charges been made that some officials in the New Deal spending organizations had used their power for political purposes, particularly to influence voters to support New Deal candidates. Enough of these charges were substantiated to bring legislation sponsored especially by a coalition of Republicans and anti-New Deal Democrats. The purpose of the act, however, was so sound that there were few in the final show-down willing to oppose it. The Hatch Political Activity Act (approved Aug. 2) made it unlawful: (1) for any person to intimidate, threaten or coerce any other person or attempt to do these things for the purpose of influencing their vote for any candidate for Federal office; (2) for any person employed in any administrative position by the United States (or any of its agencies) to use his official authority for the purpose of influencing or affecting the election of candidates for Federal office; (3) to promise employment or other benefits made possible by an act of Congress as a reward for political activity for support or opposition of any candidate for office; (4) to deprive or threaten or attempt to deprive any person, of employment or other benefit made possible by an act of Congress appropriating funds for relief or work-relief on account of race, creed, color or political activity; (5) for any person to solicit or receive contributions for any political purpose from any person known to be entitled to receive compensation, employment or other benefit from an act of Congress; (6) for any one to disclose or aid in disclosing for political purposes names of persons receiving benefits under an act of Congress; (7) for any person to use appropriations made for relief or work-relief for the purpose of influencing votes. The act makes it unlawful for any person employed in the executive branch of the Government or any of its agencies to interfere or influence an election. Certain exemptions to this last provision are made—the President, Vice-President, heads and assistant heads of executive departments and other officials appointed by the President with the advice and consent of the Senate. Violations are punishable by fine of not over $1,000 or more than one year in jail. No person employed by the Federal Government may have membership in a political party advocating the overthrow of our constitutional form of government.

Relief and Security.

Congress had not been long in session before it became obvious that extra money would have to be appropriated for relief. At the President's request a $725,000,000 Relief Deficiency Act (approved Feb. 4) was passed. It appropriated this amount for the WPA for the purposes specified in the Emergency Relief Act of 1938, and to be used proportionately as specified in that act. Numerous prohibitions or restrictions were incorporated in this act. For example: funds may not be used to construct factories in competition with existing ones; any one refusing offer of private employment which he is capable of performing shall be dropped from the rolls; those not in actual need shall be eliminated from the WPA; aliens may not be employed and the sort of political activity later forbidden by the Hatch Act is curtailed. Finding $725,000,000 not enough, Congress later added a $100,000,000 Relief Deficiency Act (approved April 13).

For the fiscal year ending June 30, 1940, Congress passed the Emergency Relief Appropriation Act of 1939 (approved June 30). It carried appropriations for $1,755,600,000, the chief items of which being $1,477,000,000 for the Works Projects Administration (successor to the Works Progress Administration); $143,000,000 for the FSA and $100,000,000 for the NYA. Many new provisions and restrictions were laid down. One provision was the elimination temporarily of any one, except veterans, who had been employed on projects for more than eighteen months. Another ended the appropriations for theater projects.

Along the line of social security Congress amended and liberalized the act of 1938 by the Social Security Act of 1939. It cut down from one and one-half to one per cent the old-age insurance tax on both employer and employee for the years 1940, 1941 and 1942. Benefits were provided for aged wives and widows, children and aged dependent parents and the act provided that old-age benefits should start Jan. 1, 1940, instead of Jan. 1, 1942. Exemptions were cut down so that seamen and certain agricultural laborers are now included under the act. In the Doughton Unemployment Compensation Act (approved April 19) the Social Security Act is amended to authorize appropriations amounting in all to $133,000,000 to assist states in the administration of their unemployment compensation laws for the years 1936-1939.

Taxation.

The chief provisions of the Revenue Act of 1939 (approved June 29) were to wipe out the last vestiges of the undistributed profits tax on corporations, substitute for it a flat 18 per cent levy on corporation incomes above $25,000 and to extend for two years (until June 30, 1941) the temporary stamp taxes on issues of securities, bond and stock transfers and deeds of conveyance, manufacturers' excise taxes on various commodities, admissions to the theaters, etc.

By the Public Salary Tax Act of 1939 (approved April 12) Congress provided for the taxation of the salaries of the employees of a state or subdivision thereof and at the same time, consented to the imposition of income taxes by the states on the compensation received after Dec. 31, 1938, of all officers and employees of the Federal Government. Congress also in the District of Columbia Tax Act provided for an income tax for the District of Columbia beginning with the year 1939. Allowing the same exemptions as in the Federal Income Tax Law, it called for a rate of 1 per cent on the first $5,000 of taxable income; 1½ per cent on the next $5,000; 2½ per cent on the next $5,000 and 3 per cent on all taxable income in excess of $20,000,000. The rate on corporations is 5 per cent.

Transportation.

With regard to railroads Congress in the Railroad Unemployment Insurance Act (approved June 20) liberalized in a number of ways the Railroad Unemployment Insurance Act of the previous year. For railroad owners it passed the Chandler Rail Bankruptcy Act (approved July 28), amending the Bankruptcy Act of 1938, allowing railroads in financial difficulties to enter into voluntary agreements with creditors to postpone maturity dates and reduce interest rates on securities. (See also RAILROADS.)

Several pieces of legislation were also passed with regard to shipping and the merchant marine. Of these the most important was the Bland Merchant Marine Act (approved Aug. 4). Among other things it removed the two-year limitation upon orders of the Maritime Commission, provided that at hearings upon new schedules of rates that the burden of proof of reasonableness would rest upon the carriers, authorized the Commission to train citizens to become licensed pilots in a status of cadets and cadet officers, and in various ways sought to encourage the development of a merchant marine.

Veterans.

Several minor acts applying to veterans were passed. The Rankin Veterans Act (approved May 3) provided that veterans of the Spanish-American War and the Boxer and Philippine Insurrections should be eligible to all the benefits of veterans of any war. The Alien Veterans Act (approved June 21) extends until May 25, 1940, the time for naturalization of alien veterans of the World War and grants the same privileges to certain veterans of the allied armies. Under the Veterans' Paralysis Act (approved July 19) certain benefits are restored to veterans who are helpless from blindness, paresis, paralysis or any other cause. The World War Pension Act (approved July 16) increases the pensions of widows and dependents of all deceased veterans, with higher rates for dependents of World War veterans whose death was due to service. It raised the award for anatomical losses and reduced the interest on government loans to veterans from 6 to 5 per cent.

Miscellaneous.

Many acts were passed by Congress during this session which do not fall easily under the headings so far listed. The Public Debt Act (approved July 20) struck out the limitation of $30,000,000,000 on the amount of public debt obligations which may be outstanding, restoring the amount to $45,000,000,000. By the CCC Extension Act the life of the Civilian Conservation Corps was extended from July 1, 1940, to July 1, 1943. The Commercial Print Copyright Act (approved July 31) transfers the registration of commercial prints and labels from the Commissioner of Patents to the Register of Copyrights. The Omnibus Flood Control Act authorized 35 preliminary flood control surveys; declared the Alamorga Dam and Reservoir on the Pecos River, New Mexico, authorized for the purpose of controlling floods; and in other ways promoted the project of flood control. The Roosevelt Library Act (approved July 18) authorized the Archivist of the United States to accept a twelve-acre tract of land from the estate of Franklin D. Roosevelt, to permit the Franklin D. Roosevelt Library, Incorporated, a non-profit organization, to construct a building on the site to house the manuscripts, books, paintings, etc. of Franklin D. Roosevelt, and to acquire by gift, purchase or loan any such material. On its part Congress pledged the faith of the United States to provide such funds as may be necessary for the upkeep and administration of the library.

The Threatening Communication Act (approved May 15) amended the existing laws penalizing communications relating to kidnapping by broadening their scope and in some cases reducing penalties. The Alien Agency Act amended the Propaganda Act of 1938 by redefining the terms 'foreign principal' and making specific exemptions from the act. The Monopoly Appropriation Act (approved April 26) increased the appropriations for the anti-monopoly investigations by the TNEC from $500,000 to $1,100,000. The investigation of monopolies had drawn attention to the whole question of patent laws, and Congress at the end of the session passed five patent laws, the purport of which was to tighten up the legal structure regarding patents.

By the RFC Extension Act (approved March 4) the existence of the RFC was continued from June 30, 1939, to June 30, 1941, with the maturity date of its obligations to be subsequent to its existence. The life of the Electric Home and Farm Authority was likewise extended for a similar period. At the same time the maximum authorized capital stock of the Disaster Loan Corporation was increased from $20,000,000 to $40,000,000. A TVA Amendment Act (approved July 26) prohibited the Tennessee Valley Authority from issuing any additional bonds under Sections 15 and 15a of the TVA Act of 1933, but authorized the Authority to issue new bonds to an aggregate amount not exceeding $61,500,000. From this an amount not in excess of $46,000,000 might be used for the purchase of the electric-utility properties of the Tennessee Electric Power Company and the Southern Tennessee Power Company as contemplated in the contract of May 12 between the Authority and the Commonwealth and Southern Corporation and others. Not in excess of $6,500,000 might be used for the purchase and rehabilitation of properties of the Alabama Power Company and the Mississippi Company.