(Participants: Senator John F. Kennedy, Matt
Welsh, Ted Knap, Indianapolis Times, James Carroll, South Bend Tribune,
Jep Cadow, UPI.)
Mr. WELSH. Senator Kennedy, on behalf of the
people of Indiana, it is my pleasure to introduce you to the radio audience
and to the panel that is here and to, of course, wish you every success
in this campaign and in this election. I feel confident that you are going
to carry Indiana.
Senator KENNEDY. Matt, I appreciate that.
I am glad to be here with you as your guest. Indiana occupies a key place
this year in the elections. That is why we are coming tonight, to spend
the day tomorrow and be back before the campaign ends.
Mr. WELSH. You are always welcome.
QUESTION. Senator, I have heard it said that
Indiana is the problem child of the North for your campaign. I have wondered
- we have often been told, and I know it personally, that you have the
best system of finding facts in Indiana as any candidate in Indiana. I
just wondered what you think your status is in Indiana?
Senator KENNEDY. Well, I would think we were
behind in Indiana. I think we have been doing better the last 3 weeks and
I think particularly in the last 7 days we have gained some. But I would
still say we are behind in Indiana.
QUESTION. You think you are still behind?
Senator KENNEDY. That is my judgment; yes.
QUESTION. In the rural areas, probably, or
where would you say?
Senator KENNEDY. Well, I have not got a regional
breakdown or a functional breakdown. I would just say we are behind in
Indiana and we have to try to do better in the next 5 weeks. But I think
in the last 3 weeks I feel that the tide has moved somewhat in our favor,
but we still have some to go before we are ahead.
QUESTION. You are pretty satisfied with
the cooperation of the State ticket in Indiana and your candidacy?
Senator KENNEDY. Yes. Well, I think Matt Welsh
is ahead in Indiana, and I think he is going to win. They have been very
helpful to us.
QUESTION. Are you riding on Matt Welsh's coattails,
Senator?
Senator KENNEDY. I will be glad to, if they
are big enough to give me room.
QUESTION. That would be a switch. I just wondered.
QUESTION. Senator Kennedy, over the weekend
President Eisenhower rejected the proposal by five so-called neutralist
nations that he meet with Khrushchev. Do you agree or disagree with that
decision?
Senator KENNEDY. Well, in view of Khrushchev's
statements last week that he did not want to meet with the President unless
the President gave an apology for the U-2 flight, in view of his very harsh
intransigent statements at the United Nations during the past 3 weeks,
I think the President showed good judgment. There is no sense having a
meeting unless there is an atmosphere before the meeting which leads you
to hope that there will be some success.
On the issues on which we are divided with
the Soviet Union, disarmament and Berlin, which are the two chief ones
at the present time, there is no indication that there is a common meeting
ground. Therefore, just to meet, just to sit down, just to spend
an hour, unless there is some basis for hope, particularly as Khrushchev
is being extremely belligerent now, I thought the President showed good
judgment.
QUESTION. Some Democrats have been critical
of the decision of the State Department to restrict Khrushchev to Manhattan.
Do you think these travel restrictions were wise or necessary?
Senator KENNEDY. That was really a decision
for them and I never quarreled with it.
QUESTION. You have never made any statement
on that?
Senator KENNEDY. No. I never disagreed with
it. It was on the basis of security. I don't think we should harass visitors,
but in view of the judgment of the State Department that it involved security
for Mr. Khrushchev as well as harmony between the nations, because they
did not want anything to happen to Mr. Khrushchev or Mr. Castro, I never
quarreled with their decision.
QUESTION. Senator, did you ever actually say
that we should apologize?
Senator KENNEDY. No; I never recommended that
we apologize. I thought that what we should have done, rather than the
lie we told, I thought it would have been proper for us to express regrets
that a plane of ours landed on Soviet territory, because as Mr. Lodge said
on "Meet the Press" the other day, technically we were in the wrong from
the point of view of international law, and if there was any value to the
summit conference, then it would have been of some advantage with a word
to try to keep it going.
QUESTION. The Republicans keep saying that
you said he should apologize. That is not so?
Senator KENNEDY. No; that has never been so,
and I would hope that you as a good newspaperman would ask me to produce
evidence of that, because my remarks were fully recorded and fully reported.
There is a good deal of difference between the words "apologize" and "regret."
Apologize expresses some feeling of morally in the wrong. We apologized,
I believe, to Mr. Castro, or at least expressed regrets, when a plane,
a private plane, landed in Cuba, as you remember, this last winter. The
Soviet Union expressed regrets to us during the Barents Sea incident before
the last summit conference. That is an acceptable procedure between nations,
and if anyone thought that the summit was worth while, and quite obviously
the President did because a great effort was made to develop the summit,
then it would have been, I thought, more advantageous to us, more advantageous
to peace, if there had been merely an expression of regret rather than
saying a lie.
QUESTION. What is your feeling about President
Eisenhower's proposal that we make more use of the United Nations to aid
under-developed nations?
Senator KENNEDY. Yes, that has been suggested
by a good many people and I think it would be extremely useful. I don't
overestimate how much the United Nations would be able to do in Africa,
but I think that we should increase our support for it in two or three
areas. One, give more support to the effort which they made to secure civil
servants for the African nations and other nations. They have set up this
service in recent years, and begun to develop it. The big need in Africa
now are trained civil servants. The Congo has none. All the Belgians have
left.
QUESTION. We have a few in our post office.
Senator KENNEDY. I think the United States would be an admirable
recruiting ground. Secondly, I think they could do something on education.
QUESTION. Senator, both you and Vice President
Nixon have suggested that we get rid of the surplus grain by sending it
to the needy nations. But as I understand it, the State Department has
always fought it on the ground that Canada and Australia and other nations
are fearful that it will destroy the market, the international price market,
for grain.
Senator KENNEDY. That is correct. That has
been an argument against Public Law 480. We have done a good deal with
Public Law 480 and the so-called food-for-peace program. My own judgment
is that within the normal, within the limitations which you suggest, of
Canada, the Argentine, Australia and so on, I think we can pursue the program
more vigorously.
QUESTION. Do you think you can send more grain
abroad, then, if you are elected President, than we have been sending?
Senator KENNEDY. I do. I think we can make
more effective use of it. With countries like India and other countries
which have great needs for capital, which have great food shortages, I
think we can make more effective use of our food. In addition, I would
hope that any future agricultural program would provide reasonable controls
over production so that there can be some balance between supply and demand.
It is pretty hard to distribute effectively the kind of surpluses we are
now building up in corn and wheat and will build up this year under this
program. I don't think you can possibly control your surpluses and possibly
provide a decent income for our farmers, until you have effective controls
over production.
QUESTION. Senator, do you think that either
your program or the program of Vice President Nixon is very specific on
agriculture?
Senator KENNEDY. I think they are both specific.
I understand what they are both getting at. Mr. Nixon's program, as you
know, provides that there shall be the support - that the support price
shall be the average market price for the 3 preceding years, 90 percent
of it. As that market price drops, and it is steadily dropping - corn is
selling for 85 or 88 cents, depending on what region you are in that is
the market price, and, therefore, the support price would be tied to that,
90 percent of that, and next year, if the market price goes lower, the
support price again will be hitched to the market price, so that where
in 1952 you had $1.50-corn, now you have 85- or 88- or 90-cent corn. You
are going to find the market price and the support price under Mr. Nixon's
program steadily dropping, and you do not have under Mr. Nixon's program
effective controls over production. Under our program we do have effective
controls over production. We hope to bring supply and demand into reasonable
balance and then work for a parity income which is tied, the income of
the farmer, to the same income he would receive in other industries with
a comparable use of his resources and managerial skill. I think there is
a very distinct difference between the programs. Mr. Nixon's program is
a continuation of Mr. Benson's, and ours would go in a different direction.
QUESTION. What would be the effect of your
strict production controls on the consumer food prices?
Senator KENNEDY. I think - you have to realize
the amount of income that a farmer gets out of the food dollar is extremely
limited. In the case of bread, it is 3 cents out of a 25- or 26-cent loaf.
In the case of eggs, it is extremely limited, and in the case of milk,
which is as high as it is in any item, it is 6 cents out of a 25- or 26-cent
quart of milk. So that the actual return to the farmers is very marginal.
The amount of cotton there is in this shirt, the amount of income that
the farmer got---
QUESTION. What you are saying is that it would
not have an appreciable effect.
Senator KENNEDY. Even if you take in the case
of wheat, and you said the farmers' income is going to increase 25 or 26
percent, if it is 3 cents, it still is only 1 penny, and I don't think
anyone hopes or feels that they can possibly maintain food prices if you
are going to have the farmer being liquidated at the rate he is now. You
are going to have large corporation farms. Food will be more expensive
that way and less desirable that way.
QUESTION. You have talked about economic growth.
Why should I or the average Hoosier care about that? Is it important
Senator KENNEDY. I think it is the great problem
for the next President, that and the decline in farm income. In order to
maintain full employment in the 1960's, which, after all, must be the object
for all of us, we are going to have to have an economic growth twice what
we had last year, about 4.5 percent per year instead of 2.4 percent. We
have to secure 25,000 new jobs a week for the next 10 years in order to
provide jobs for all of the people coming into the labor market. That is
a terribly difficult task at a time when automation and new machinery has
taken the jobs of men. And at the present rate of economic growth or productivity
increase, we are not going to have those jobs or people. We now have 4
million out of work. You have 3 million on part time. You will have a million
and a half people coming on the labor market next summer. I think it is
the big problem that will face the President of the United States domestically.
There is no easy answer to it. But I do think that the economic, monetary,
and fiscal policies of the administration have helped limit growth.
QUESTION. I wonder if we can come back to
the farm problem for one question. Your program calls for some agency or
something to determine what is a fair return for a fanner in terms of his
labor. Who is going to do this?
Senator KENNEDY. I think the Department of
Agriculture. I don't think that that is impossible at all to compute, statistically.
I think you could make a reasonably good judgment as to the amount of capital
investment, the amount of labor, managerial skill, a farmer puts into the
production of his pound or bushel of his commodity as to what he would
receive in a comparable nonagricultural industry.
QUESTION. What I was wondering is, couldn't
this same type of thing be extended to other segments of the economy, say
the ma and pa grocery operator or the gasoline station man or the newspaper
reporter?
Senator KENNEDY. They don't have the same
problem that the farmer has in regulating their production. You can close
down. A steel company closed down and is now Operating at 54 percent of
capacity. Their profit margin remains the same. They can go up next week
to 90 percent of capacity. But a farmer has a very difficult time making
that kind of control over his production, if he plants in the spring and
harvests in the fall. In addition, may I just say that if the farmer continues
to decline in income, you are not going to have any ma and pa, because,
after all, most of them depend pretty much, in small towns, finally on
the farmer.
QUESTION. Will this tend to keep the marginal
farmer on the land, the farmer who is doing a poor job of farming?
Senator KENNEDY. If he is doing a poor job
of farming, then I think sooner or later - I am sure that most of the people
that you would refer to have jobs now in towns or cities. If he is doing
a poor job of farming, his future is not going to be particularly bright
under any program. There is not much that you can do for anyone who is
poor at his work.
QUESTION. This would not guarantee an income
for him, then?
Senator KENNEDY. It does not guarantee a farmer
that is unable to farm that he would be maintained on the farm, but it,
does guarantee that those who are within the economic, the viable, that
they can be continued.
QUESTION. Senator, isn't there a depression
on now?
Senator KENNEDY. No; I would not say that,
but I would say that there is certainly a plateau of economic activity
which could be serious in the winter of 1961, but I would not use that
term as yet, because I don't think we know enough where we are going. But.
I would say that the prospects for the winter of 1961 - this could be a
serious time unless we get an upturn.
QUESTION. I would like to ask that question
of Senator Welsh, as pertains to Indiana. What do you think is the
economic picture in the State and in the immediate future?
Mr. WELSH. Well, in northern Indiana, around
the steel mill area, of course, there is economic distress, because the
steel mills are operating at 50 or 55 percent of capacity. In the rural
areas, generally speaking, I think we have had a good crop year. However,
in some parts of the State the crops are not good because of drought. In
most of the cities of the State, I would say there is a good bit of concern
about employment, about business. A general air of uneasiness would be
the way I would characterize it.
QUESTION. Is that usually - does that mean
Democratic votes in the fall, do you think?
Mr. WELSH. If there is anything to the old
political axiom that people vote against, I would say yes. Certainly, many
people are dissatisfied with present conditions, many people are.
QUESTION. Senator, is the heavy registration
because of the AFL-CIO, or some other factor?
Mr. WELSH. It is general. It is general. In
Republican, normally Republican counties, where the voting population is
overwhelmingly small town and rural, not industrial, the percentage increase
in registration is equally as great as it is in the industrial areas. This
is an election when the people have made up their minds they are going
to go to the polls, and we are going to see a tremendous vote this fall.
QUESTION. Senator Kennedy, I wonder - Senator
Matt Welsh mentioned difficulties in the steel mills and there are those
who maintain this is partly a result of imports of foreign steel. I wonder
how the Democratic national platform planks seem to be for sort of free
trade how that will affect the steel industry in the next 4 years if you
are in the White House.
Senator KENNEDY. Actually, as far as trade,
we have a favorable balance of trade. In the last 12 months we are selling
abroad more than we are importing, and that is true of steel as well as
other products. One of the reasons of course, I am frank to say, is because
the German and Belgian mills are overordered and it takes a longer time
to get orders than it does from the United States. But at least for the
present now we are selling abroad in steel as well as other commodities
more than we are importing. But I do think it is a matter that we should
concern ourselves with. The unfavorable deficit is due to the fact that
we are paying troops abroad to maintain bases, giving foreign aid. That
is what is hurting. The balance of trade this year is all right.
QUESTION. What would you do to give the hypo
to the general picture?
Senator KENNEDY. On the steel mills?
QUESTION. Yes.
Senator KENNEDY. I think that is affected
by the general state of the economy. As the economy slowed down, we had
a recession in 1954. We had a recession in 1958, and now it is 1960, 2
years later, and we are moving into a difficult economic period, and of
course steel feels it first.