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DEBT CEILING INCREASE HEARINGS BEFORE THE COMMITTEE ON FINANCE UNITED STATES SENATE EIGHTY-FIFTH CONGRESS SECOND S E S S I O N ON H. R. 9955 AN ACT TO P R O V I D E FOR A T E M P O R A R Y I N C R E A S E I N THE PUBLIC DEBT JANUARY 27, 28, F E B R U A R Y 4 AND 7, 1958 P r i n t e d for the use of the Committee on F i n a n c e UNITED STATES GOVERNMENT PRINTING OFFICE 21297 WASHINGTON : 1958 C O M M I T T E E ON F I N A N C E HARRY F L O O D : 3YRD, Virginia, Chairman ROBERT S. KERR, Oklahoma EDWARD MARTIN, P e n n s y l v a n i a J . A L L E N F R E A R , J R . , Delaware J O H N J. WILLIAMS, Delaware R U S S E L L B, LONG, Louisiana R A L P H E. F L A N D E R S , Vermont GEORGE A. SMATHERS, Florida GEORGE W. MALONE, Nevada CLINTON P . ANDERSON, New Mexico FRANK CARLSON, K a n s a s WALLACE F . B E N N E T T , U t a h P A U L H. DOUGLAS, Illinois W I L L I A M E. J E N N E R , I n d i a n a A L B E R T GORE, Tennessee E L I Z A B E T H B. SPRINGER, Chief Clerk II CONTENTS Pa*e 1 T e x t of H. R. 9955 STATEMENTS Anderson, Hon. R o b e r t B., Secretary of t h e Treasury 2 Brundage, Hon. Pereival F., Director of t h e Bureau of t h e Budget, Executive Office of t h e President; accompanied b y Maurice H . Stans, D e p u t y Director; William F . McCandless, Assistant Director for Budget R e view; a n d Samuel M. Cohn, Chief, Fiscal Analysis, Bureau of t h e Budget 106, 243, 419 EXHIBITS Analysis of unexpended balances—by organization unit a n d account title Agriculture D e p a r t m e n t Commerce D e p a r t m e n t Defense D e p a r t m e n t — C i v i l functions Defense D e p a r t m e n t — M i l i t a r y functions District of Columbia Executive Office of t h e President F u n d s appropriated to t h e President . General Services Administration Health, Education, a n d Welfare D e p a r t m e n t Housing a n d H o m e Finance Agency I n d e p e n d e n t Offices Interior D e p a r t m e n t Judiciary Justice D e p a r t m e n t Labor D e p a r t m e n t Legislative branch Post Office D e p a r t m e n t State D e p a r t m e n t Treasury D e p a r t m e n t Appropriations, 1959 estimate Budget expenditures—semiannual (fiscal years 1955-59) Budget receipts—semiannual (fiscal years 1955-59) Budget surplus or deficit—semiannual (fiscal years 1955-59) Changes in t h e purchasing power of the dollar and deficit financing, 1 8 7 3 1957 C o m m i t m e n t s m a d e by Federal representatives to t h e Joint Federal-State Action Committee Consumer prices and t h e purchasing power of t h e dollar, 1913 t o M a y 1957_ Consumer prices and t h e purchasing power of t h e dollar, 1873, and 1913-57. Consumer prices, purchasing power of t h e dollar, a n d selected factors affecting prices, 1939-57 Currency being generated abroad from all United States programs, free use and otherwise Decreases and increases in expenditures, 1959, compared with 1958, a s shown in 1959 budget document D e b t limitation under section 21 of t h e Second Liberty Bond Act as amended—history of legislation _ D e b t of Federal Government agencies not guaranteed as t o principal and interest by t h e United States, December 31, 1957 Dollar expenditures under t h e M u t u a l Security Program Expenditure increases in 123 164 172 187 179 224 130 133 156 191 160 138 199 127 210 212 123 215 216 219 413 10 11 10 31 114 51 73 35 394 391 5 83 426 411 IV CONTENTS Page Expenditures of pre-use currencies in fiscal year 1959 by such programs as E x p o r t - I m p o r t Bank, Defense Family Housing, Foreign Agricultural Service, General Services Administration, M u t u a l Security, S t a t e D e p a r t m e n t , United States Information Service, etc 416 E x p o r t - I m p o r t Bank of Washington 271 G r o w t h of t h e b a n k in t e r m s of capital structure and lending a u t h o r i t y . 400 L o a n s in default, fully reserved on books, a n d losses charged off, as of December 31, 19571 311 S t a t e m e n t of delinquent loans 313 S t a t e m e n t of loans delinquent as of December 31, 1957, u n p a i d a t J a n u a r y 30, 1958, E x p o r t - I m p o r t participation only 312 E x p o r t - I m p o r t Bank loan of December 21, 1956 to the United K i n g d o m . 257 Forecast of cash balance a n d debt, J a n u a r y 1958-June 1959, based on constant operating cash balance of $3.5 billion (excluding free gold) 7 F u n d s for foreign aid . 444 High a n d low balances in certain m o n t h s and balances on selected dates in T r e a s u r y t a x a n d loan accounts in commercial banks 72 Increases in expenditures between 1958 and 1959 398 I n t e r n a t i o n a l B a n k for Reconstructional Development, establishment of__ 260 S t a t e m e n t of loans, December 31, 1957 261 S t a t e m e n t of subscriptions to capital stock 432 I n t e r n a t i o n a l Cooperation Administration, authorization of Development Loan F u n d 314 Allocations, J a n u a r y 1 t o J u n e 30, 1957, under credits previously authorized 314 I n t e r n a t i o n a l Finance Corporation, organization of 266 S t a t e m e n t of operational investments approved, December 31, 1957_ 267 I n t e r n a t i o n a l M o n e t a r y Fund, establishment of 268 Exchange transactions a n d s t a n d b y arrangements 269, 270 Income and expenditure 430 Quotas and subscription of member currencies and gold 431 Leeway under $278 billion t e m p o r a r y s t a t u t o r y debt limit—Allowing for $3 billion balance, including $500 million from unused free gold 21 Letters: Anderson, H o n . R o b e r t B., Secretary of t h e Treasury, t o chairman, J a n u a r y 28, 1958 21 Baird, H o n . Julian D . , Under Secretary of t h e Treasury, t o H o n . P a u l H . Douglas _" 82 Davies, Homer G., to chairman, J a n u a r y 31, 1958 443 H a y d e n , H o n . Carl, t o chairman, J a n u a r y 24, 1958 240 Loan c o m m i t m e n t t o France 254 Long-range commitments a n d contingencies of the United States Governm e n t as of J u n e 30, 1957 __. 84 M a r k e t a b l e maturities in 1958 (excluding regular and tax-anticipation bills) 9 Marketable maturities, J a n u a r y 1958 through December 1958 7 National Advisory Council on International M o n e t a r y a n d Financial Problems, establishment of 255 New obligational authority 412 New p r o g r a m s , estimated expenditures for fiscal year 1959 390 Public debt outlook 8 Public debt subject to s t a t u t o r y limitation and operating cash b a l a n c e - 92 Relationship of United States liability on stock of I n t e r n a t i o n a l Bank to public debt limit 90 Report on Foreign Currencies in Custody of the Treasury D e p a r t m e n t (currencies acquired by t h e United States, principally intergovernmental agreements, without purchase with dollars) for the period J u l y 1, 1957, t h r o u g h September 30, 1957, Treasury D e p a r t m e n t Fiscal Service, Bureau of Accounts 447 Role of t h e Bureau of t h e Budget in reducing expenditures 233 Specific p r o g r a m cuts in the 1959 budget 26 S u m m a r y of balances available at start of the fiscal year 1959 414 S u m m a r y of balances available at start of year (based on existing and proposed legislation) 225 S u m m a r y analysis of unexpended balances (by budget document chapters) _ 122 CONTENTS S u m m a r y s t a t e m e n t submitted by Hon. George W. Malone Treasury cash balance problem Treasury comments on proposal t h a t Congress enact legislation permitting b a n k s t o p a y interest on balances in Treasury t a x and loan accounts, J a n u a r y 24, 1958 Unexpended balances United States Government subscriptions to financial institutions making loans abroad Volume of Treasury m a r k e t financing (excluding weekly rollover of bills) _ _ Weekly statistics on United States deposits in selected New York banks, J a n u a r y 1953 t o August 1955 Weeklv statistics on United States deposits in selected New York banks, September 5, 1956, through M a y 1, 1957 Weekly statistics on United States deposits in selected New York banks, August 17, 1955, t h r o u g h September 5, 1956 V Page 97 8 62 414 400 9 56 61 59 DEBT CEILING INCREASE MONDAY, J A N U A R Y 27, 1958 UNITED STATES SENATE, COMMITTEE ON FINANCE, Washington^ D. C. The committee met, pursuant to call, at 10 a. m., in room 312, Senate Office Building, Senator Harry Flood Byrd (chairman) presiding. Present: Senators Byrd (chairman), Kerr, Frear, Anderson, Douglas, Long, Martin, Williams, Flanders, Malone, Carlson, and Bennett. Also present: Elizabeth B. Springer, chief clerk. Hon. Eobert B. Anderson, Secretary of the Treasury; Julian Baird, Under Secretary for Monetary Affairs, Department of the Treasury; William T. Heffelfinger, Fiscal Assistant Secretary; and Paul Wren, assistant to the Secretary, Department of the Treasury; and Eobert P. Mayo, Chief, Debt Analysis Staff, Department of the Treasury. The CHAIRMAN. The committee will come to order. The committee has now under consideration House bill 9955, for the purpose of increasing the debt limit on a temporary basis until June 20,1959, by $5 billion. (The bill H . E . 9955 is as follows:) [H. R. 9955, 85th Cong., 2d sess.] AN ACT To provide for a t e m p o r a r y increase in t h e public debt limit Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, during the period beginning on t h e d a t e of the enactment of t h i s Act and ending on J u n e 30, 1959, t h e public debt limit set forth in t h e first sentence of section 21 of the Second Liberty Bond Act, a s amended, shall be temporarily increased by $5,000,000,000. Passed t h e House of Representaties J a n u a r y 23,1958. Attest: R A L P H R. ROBERTS, Clerk. The CHAIRMAN. NOW, Mr. Secretary, the committee and I are pleased to welcome you, for I believe this is your first appearance as Secretary of the Treasury, and, personally, I want to express my respect for you and my confidence in you. I feel certain it is shared by every member of the committee. I n the days ahead of us we shall look forward to your appearances l>efore the committee, because all of us realize that we have very difficult fiscal problems confronting us. So you ma}^ proceed, sir, and make your statement. 1 2 DEBT CEILING INCREASE STATEMENT OF HON. KOBEKT B. ANDEESON, SECRETARY OF THE TBEASUEY Secretary ANDERSON. Thank you, Mr. Chairman. I should first like to read a statement, a copy of which I think has been given to each member of the committee. H. R. 9955, which was passed by the House of Representatives and is now before your committee for consideration, provides a temporary increase from $275 billion to $280 billion until June 30, 1959, in the statutory limitation on the public debt. I sent to each member of the committee a copy of my statement (with accompanying tables and charts) before the House Ways and Means Committee on January 17. I am attaching the same exhibits and would like to reviewT them briefly with you this morning. Before doing so, however, I want to emphasize again that the need at this time for a debt limit increase is based on: 1. T h e fact that cash balances have been running distressingly low, as I will show in detail later. 2. There is need for more flexibility for more efficient and economical management of the debt. 3. Even with a balanced budget there will still be large seasonal fluctuations in receipts which make operations under the $275 billion limitation most difficult. I would like to direct your attention to table I, which summarizes the various changes in the statutory debt limitation during the past 40 years. Previous changes made in the debt limitation consistently provided larger margins between the outstanding debt and the successive limits than now exist or which would result from the temporary increase under consideration. Chart 2 compares the debt outstanding in recent years with the debt limit. I should like here to call your attention particularly to the fact that the Treasury operated very close to the $275 billion limit during the fiscal year 1954, but to keep under the limit we had to adopt relatively costly expedients. There was somewhat more leeway under the temporary debt increase to $281 billion during the fiscal year 1955, but in the fiscal year 1956 the debt was very close to the limit during a substantial part of the winter. There was a little greater margin under the limit a year ago, but, as the chart depicts, during the past several months the Treasury has been extremely close to the debt limit. You will note that we normally have sufficient margin under the debt limit on June 30 of each year and that it is during the winter when the limit is the most restrictive. One of the most serious difficulties encountered by the Treasury in operating under the present limitation is the problem of c a r d i n g out our financing in an orderly and economical manner. A large portion of our public debt is made up of securities with relatively short maturity. More than $25 billion of Treasury bills mature within the next 90 days and more than $50 billion of Treasury certificates, notes, and bonds are coming due in the calendar year 1958. DEBT CEILING INCREASE 3 I should like here to call your attention to charts 3 and 4. Chart 3 shows that our first maturity in calendar 1958 is on February 14 and that we have some further maturities almost every month during the rest of the year. Maturities on chart 3 total $50.2 billion, of which $21.3 billion is held by Federal Reserve banks and Government investment accounts. The figures on this chart do not include $3 billion of tax anticipation bills which we expect to pay off in March, nor do they include $22 billion of regular 90-day Treasury bills which we normally turn over 4 times a year. Chart 4 shows the total volume of Treasury financing that has taken place in recent years, which again excludes the regular Treasury bills that w^e roll over quarterly. The total, for example, in 1957 was $65.5 billion, of which we were able to extend $8.8 billion beyond 1 year in 1- to 5-year notes, and $1.3 billion in 12- and 17-year bonds. Some part of this debt is coming due each month, so that at all times the Treasury is faced with substantial refunding problems. An objective of sound fiscal policy is to extend the maturity of newT issues whenever opportunities are available, so as to avoid concentrating too large a portion of the public debt in the area of short maturities. During the past several months, we have been able to issue only relatively small amounts of longer maturities on two occasions. We should be able to take advantage of any such favorable opportunities that may arise in the period ahead of us. Under the present debt limit, we are not able to take full advantage of such opportunities by selling long-term issues in advance to retire part of the maturing issues. The need for temporary ovelapping of the debt will be explained later. We will still experience in fiscal year 1959 a continuation of seasonal peaks in the collection of corporate income taxes. These collections of corporate taxes are gradually being leveled off, but there are still large seasonal fluctuaticftis. Under these circumstances, it is necessary for the Treasury to borrow large sums of money in the July-December period to meet expenditures, and to pay off such borrowings in the January-June period, even in years when we have balanced budgets. I should like to direct your attention to charts 5, 6, and 7. Chart 5 shows quite vividly the seasonal peaks and valleys of the Federal budget. This clearly indicates the extent to which heavy Treasury borrowing is required during each July through December budget deficit period in anticipation of a budget surplus in the following spring. Chart 6 is illustrative of the fact that in recent years there is loss marked seasonal movement in budget expenditures than in receipts, and, if you look at chart 7 in relation to chart 6, you see the reason for the big seasonal swing in the Government's deficit or surplus position. Chart 7 reflects the way in which taxes flow into the Treasury. As I have said, some of this unevenness is being ironed out slowly as a result of the corporate-tax collection change under the Revenue Code of 1954, but still it has a way to go. I t is difficult to make precise month-to-month forecasts which reflect all cash operations of the Government, including collection of a great many types of revenues, the rates of expenditures under the program of each agency, the issuance and retirement of our public- 4 DEBT CELLING INCREASE debt obligations, and all of the multitude of operations reflected in the total inflow and outflow of the Treasury. We have, however, attempted such estimates of the public debt and cash balances, based upon our best judgment at this early date, and I am submitting for your information these figures in the attached table 3. These figures are based on the assumption that for an operation of this size we should have cash on hand equal to at least 12 clays' expenditures—about $3.5 billion. We have assumed this balance at the middle and at the end of each month with the full realization that between these dates the cash might be below or above this level by a substantial amount. This margin is necessary to keep the Treasury in a strong position to meet wide fluctuations in expenditures and to minimize our vulnerability to slow collections because of weather conditions affecting the mails or other conditions beyond our control. I n addition to this moderate working balance, we are of the opinion that a reasonable margin for contingencies and provision for flexibility in financing is very important in the public interest. What we mean by "flexibility" involves a rather technical explanation, but I will try to make it clear. For example, if we go into the market to refund an outstanding issue, regardless of the terms of the new issue, we must take into consideration the fact that in the normal course of business certain holders of these securities will need cash. Others will decide that the terms of the new securities do not meet their particular investment requirements and therefore they too will take payment for their maturing securities in cash. So long as the debt margin is very narrow, and cash balances low, the Treasury has to estimate carefully what this attrition (maturing securities presented for cash payment) will be so as not to be in a position where the Treasury could not make payment for all maturing obligations presented. This might mean that the coupon rate on the new securities would have to be more generous than would otherwise be required. If the attrition proves to be greater than anticipated, the Treasury has to go back into the market almost immediately to restore working balances, even before the previous issue has been distributed properly. This threat of a new issue hanging over the market creates uncertainty in the minds of investors and keeps the market for United States Government securities in a weak position. I t also unreasonably handicaps the normal financing operations of States, municipalities, and private businesses. If, on the other hand, a cash offering is included in the refunding program and the market were to improve between the date of announcement of new United States Government financing and the date the books close, the attrition might be substantially less than anticipated. I n such event, the Treasury must calculate that it runs the risk of inadverently exceeding the limit for a short period. While we subscribe fully to the principle that every expenditure should be scrutinized carefully in the interest of the maximum economy and efficiency, the ability to pay our bills is not the sole consideration in this problem. However, in our opinion an increase of $5 billion is necessary to provide adequate working balances, flexibility, and a modest provision for contingencies that we deem essential to prudent and economical debt management. DEBT CEIUING INCREASE 5 I t should also be m a d e clear t h a t t h e p o r t i o n of t h e requested increase in t h e d e b t l i m i t t h a t is r e q u i r e d for needed flexibility w o u l d n o r m a l l y be utilized only a t t h e t i m e of l a r g e new financing, a n d t h e n for a s h o r t p e r i o d . I t can best be described as a n o v e r l a p p i n g o p e r a t i o n needed u n t i l t h e proceeds a r e used e i t h e r for a t t r i t i o n or t h e v o l u n t a r y r e t i r e m e n t of T r e a s u r y bills or o t h e r m a t u r i n g debt. I w o u l d like t o r e p e a t , M r . C h a i r m a n , m y p l e d g e to t h e m e m b e r s of t h e C o m m i t t e e on W a y s a n d M e a n s of t h e H o u s e t h a t — We of the Treasury assure you and the members of this committee and the Congress that we will exert all of our abilities to achieve the utmost economy in Government operations and to manage the public debt as best we can in the national interest. ( T h e tables and c h a r t s r e f e r r e d t o are as f o l l o w s : ) TABLE 1.—Debt limitation under sec, 21 of the Second Liberty Bond Act, as amended, history of legislation Sept. 24, 1917: Sec. 1 (40 Stat. 288) authorized bonds in the amount of * $7, 538,945, 400 Sec. 5 (40 Stat. 290) authorized certificates of in- 2 debtedness outstanding (revolving authority) 4, 000,000, 000 Apr. 4,1918: Amending sec. 1 (40 Stat. 502), increased bond au- x thority to 12, 000,000, 000 Amending sec. 5 (40 Stat. 504), increased authority 2 for certificates outstanding to 8, 000,000, 000 July 9, 1918: Amending sec. 1 (40 Stat. 844), increased bond authority to * 20, 000, 000, 000 Mar. 3,1919: Amending sec. 5 (40 Stat, 1311), increased authority 2 for certificates outstanding to 10, 000, 000, 000 New sec. 18 added (40 Stat. 1309), authorized notes in the amount of * 7, 000, 000,000 Nov. 23, 1921: Amending sec. 18 (42 Stat. 321), increased note authority to outstanding (establishing revolving 8 authority) 7, 500,000,000 June 17, 1929: Amending sec. 5 (46 Stat. 19), authorized Treasury bills in lieu of certificates of indebtedness, 2 no change in limitation for the outstanding . . . 10, 000, 000, 000 Mar. 3, 1931: Amending sec. 1 (46 Stat. 1506), increased bond authority to * 28, 000, 000, 000 Jan. 30, 1934: Amending sec. 18 (48 Stat. 343), increased 2 authority for notes outstanding to 10, 000, 000, 000 Feb. 4,1935 : Amending sec. 1 (49 Stat. 20), limited bonds outstand- 2 ing, establishing revolving authority to 25, 000,000, 000 New sec. 21 added (49 Stat. 21) consolidated authority for certificates and bills (sec. 5) and authority for notes (sec. 18). Same aggregate amount 2 outstanding 1 20, 000, 000, 000 New sec. 22 added (49 Stat. 21) authorized United States savings bonds within authoritf of sec. 1. May 26, 1938: Amending sees. 1 and 21 (52 Stat. 447), consolidated in sec. 21, authority for bonds, certificates of indebtedness, Treasury bills and notes (outstanding bonds limited to $30,000,000,000). Same aggregate total 2 outstanding 45, 000, 000, 000 July 20, 1939 (53 Stat. 1071) : Amending sec. 21, removed limitation on bonds without change total authorized outstanding of bonds, certificates of indebtedness, Treas- 2 ury bills and notes 45, 000, 000, 000 See footnotes at end of table, p. 6. 6 DEBT CEILIXG INCREASE TABLE 1.—Debt limitation under sec. 21 of the Second Liberty amended, history of legislation—Continued J u n e 25,1940 (54 Stat. 526) : SEC. 302. Sec. 21 of the Second Liberty Bond Act, a s amended, is hereby further amended by inserting " ( a ) " after '"21." and by adding a t t h e end of such section a new p a r a g r a p h as follows : " ( b ) I n addition to the a m o u n t authorized by the preceding p a r a g r a p h of this section, any obligations authorized by sections 5 and 18 of this Act, as amended, not to exceed in t h e aggregate $4,000,000,000 outstanding a t any one time, less any retirements made from t h e special fund made available under section 301 of t h e Revenue Act of 1940, may be issued under said sections to provide the T r e a s u r y with funds to meet any expenditures made, after J u n e 30, 1940, for the national defense, or to reimburse the general fund of the T r e a s u r y therefor, any such obligations so issued shall be designated 'National Defense Series'." Feb. 19, 1941 (DO Stat. 7) : Amending sec. 21, to r e a d : "Provided, T h a t the face amount of obligations issued u n d e r the a u t h o r i t y of this Act shall not exceed in the aggregate $65,000,000,000 outstanding a t any one time." E l i m i n a t e s separate a u t h o r i t y for $4,000,000,000 of National Defense Series obligations Mar. 28, 1942 (56 Stat. 189) : Amending sec. 21, increasing limitation to $125,000,000,000 Apr. 10, 1943 (57 Stat. 63) : Amending Sec. 21, increasing limitation to $210,000,000,000 J u n e 9, 1944 (58 Stat. 272) : Amending sec. 21, increasing limitation to $260,000,000,000 Apr. 3, 1945 (59 Stat. 47) : Amending sec. 21 to r e a d : "The face amount of obligations issued under a u t h o r i t y of this Act, and the face a m o u n t of obligations guaranteed as to principal and interest by the United States (except such g u a r a n t e e d obligations a s may be held by t h e Secret a r y of t h e T r e a s u r y ) , shall not exceed in the aggregate $300,000,000,000 outstanding at any one time" J u n e 26, 1946 (60 Stat. 316) : Amending sec. 21, decreasing limitation to $275,000,000,000 and adding, "the c u r r e n t redemption value of any obligation issued on a discount basis which is redeemable prior to m a t u r i t y a t t h e option of the holder thereof shall be considered, for t h e purposes of this section, to be the face amount of such obligation" Aug. 28, 1954 (68 Stat. 895) : Amending sec. 21, effective Aug. 28, 1954, and ending J u n e 39, 1955, temporarily increasing limitation by $6,000,000,000 J u n e 30,1955 (69 Stat. 241) : Amending Aug. 28, 1954, act, by extending until J u n e 30, 1956, increase in limitation to J u l y 9, 1956 (70 Stat. 519) : Amending act of Aug. 28, 1954, temporarily increasing limitation by $3,000,000,000, for period beginning on J u l y 1,1956, and ending J u n e 30, 1957, to 1957: Effective J u l y 1, 1957, temporary increase terminates and limitation reverts, u n d e r act of J u n e 26, 1946, to 1 2 Limita' ion on issue. 3 Limitation on outstanding. Limitation on issues less retirements. Bond 3 2 Act, as 4, 000, 000, 000 65, 000, 000, 000 2 125, 000, 000, 000 2 210, 000, 000, 000 2 260, 000, 000, 000 2 300, 000, 000,000 2 275, 000, 000, 000 2 281, 000, 000, 000 2 2 8 1 , 000, 000, 000 2 278, 000, 000, 000 2 275, 000, 000, 000 7 DEBT CEILING INCREASE TABLE 2.—Marketable maturities January 1958 through December 1958 z [In millions of dollars] F e b . 14. M a r . 15 A p r . 1__ A p r . 15DoJ u n e 15. Do. Do. A u g . 1_Oct. 1__ D e c . l._ D e c . 15. Total amount outstanding D e c . 31, 1957 Security (issue date) M a t u r i t y date 3 % percent certificate ( F e b . 15, 1957) 2J/2 percent b o n d (June 2, 1941) V/2 percent exchange n o t e (Apr. 1, 1953)___ Special bill (Aug. 21, 1957) 3J-6 percent certificate ( M a y 1, 1957) 2% percent n o t e (Dec. 1, 1955) 2% percent b o n d (July 1, 1952) 2% percent b o n d of 1958-63 (June 15, 1938)» 4 p e r c e n t certificate (Aug. 1, 1957) \YL percent exchange n o t e (Oct. 1, 1953) 3% p e r c e n t certificate (Dec. 1, 1957) 2Yi percent b o n d ( F e b . 15, 1953) $10,851 1,449 385 1,751 2,351 4,392 4,245 919' 11, 519' 121 9,83& 2,368 Total 50,179 1 P a r t i a l l y tax e x e m p t ; callable J u n e 15, 1958. 2 E x c l u d e s $22,100,000,000 of regular weekly T r e a s u r y bills a n d $3,000,000,000 t a x a n t i c i p a t i o n bills d u e M a r . 24, 1958. TABLE 3.—Forecast of cash balance and debt, January 1958-June 1959, based on constant operating cash balance of $3.5 billion {excluding free gold) [In billions] Operating balance, Federal Reserve b a n k s a n d depositaries (excluding free gold) 1958—Jan. 31 _ F e b . 15F e b . 28. M a r . 15 M a r . 31 A p r . 15A p r . 30. M a y 15. M a y 31. J u n e 15. J u n e 30. J u l y 15. July 31. Aug. 15. A u g . 31. Sept. 15. Sept. 30. Oct. 15_. Oct. 31_. N o v . 15. N o v . 30. Dec. 15Dec. 3 1 . 1959—Jan. 15.. Jan. 31-. F e b . 15. F e b . 28M a r . 15. Mar. 31. A p r . 15. A p r . 30. M a y 15. May31_ J u n e 15. J u n e 30. $3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 Public debt subject to limitation $275. 0 275.6 274.9 276.2 270.4 271.8 272.2 272.5 272.1 273.9 269.3 271.6 272.6 273.5 273.6 275. 2 271. 3 273. 4 274.7 275. 3 275.0 277.1 275. 3 276.9 276.1 276.8 275. 4 276.6 271.3 272.8 273.1 273.4 273.1 274.9 269.3 Allowance to p r o v i d e flexibility in financing a n d for contingencies $3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3,0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 Total public debt limitation r e q u i r e d $278.0 278.6 277.9 279.2 273.4 274.8 275.2 275.5 275.1 276.9 272.3 274.6 275.6 276.5 276.6 278.2 274.3 276.4 277.7 278.3 278.0 280.1 278.3 279.9 279.1 279.8 278.4 279.6 274.3 275.8 276.1 276.4 276.1 277.9 272.3 N O T E . — W h e n t h e 15th of a m o n t h falls on S a t u r d a y or S u n d a y , t h e figures relate to t h e following business d a y . 8 DEBT CEILING INCREASE CHART 1 -THE TREASURY CASH BALANCE PROBLEM. |$ea. Monthly Averages. Pisco! 1948-58 Operating Gash Balance m fra*Q> Operating Cosh Balance Q% % of Budget Expenditures j i *4< lis!|Budget Expcndifurcs] 1948 '52 '55 *58 * 1948 $2 '55 Fiscal Y«on * CHART 2 .PUBLIC DEBT OUTLOOK. *Bil.h Legal 28i\ r -^- . 274.4 1956 — 1957 Fiscal Years '58 HfUiMillllli.U 1958 1959 DEBT CEILESPG INCREASE CHART 3 MARKETABLE MATURITIES IN 1958. Including Regular and Tax Anticipation Bills 11.5 [IBil. 10.9 98 <y-? Federal Reserve Bonks* f .AHOther Investors 44 42 24 i!5.J 1.4 2.4 4£ 42 18 p ^ , 7 ih2i 3 3 / 8 % 2'/ 2 % » t o CI Bd. E.Nt. Feb. 14 Mor.15 Apr.I Sp. 3fe% Bill C I . ^ Apr. I S - 1 Z\% Nt. ' m fc 69 .1 2%X 2%% Bd. Bd. June 15 ' 4% CI. Aug.! |24l 33/4% 2 , / 2 % CI Bd. Dec. I Dec. 15 lifc% ENt. Oct. I *Including Government Investment Accounts. CHART 4 VOLUME OF TREASURY MARKET FINANCING (Excluding Weekly Roll-Over of Bills) ]*Bil.| 65.5 E2ZZ2 1.3 5-10 Year Bonds* 60 [ 8.8 ~*0ther Notes 51.6 ^ 2 . 7 Long-Term Bonds. 469 40 h 6.1 375 3.0 9.3 47.5] 31.4 31.0 20 \ 26.5 ^ Certs. ondShort Notes" 8.9J "~ Seasonal • 24.7 El 1.4 J rv^l 1947 49 '51 '53 '55 — Calendar Years — *Notes originally 20months or less to maturity. '57 10 DEBT CEILING INCREASE CHART 5 .BUDGET SURPLUS OR DEFICIT-SEMIANNUAL. Fiscal Years 1955-'59 $BlO Budget Surplus •5r •7.33 JulyDec JulyDec. JulyDec. JulyDec Jan.June Jan.June -5.7 -6.1 -68 -7.9 -5 JulyDec. JanJune Jan.June Jan.June K+6.64 + 6.43 -9.31 Budget Deficit -IOL '56 1955 '57 '59 '58 CHART 6 BUDGET EXPENDITURES-SEMIANNUAL. Fiscal Years 1955-'59 JulyDec. Jon.June — 1955—' JulyDec. v Jon.June —1956—' JulyDec. Jan.June ^—1957—' JulyDec. v Jan.June 1958 ' JulyDec. v Jan.June 1959—' DEBT CEILING INCREASE H CHART 7 BUDGET RECEIPTS-SEMIANNUAI Fiscal Years 1955-59 1 JulyDec. Jon.June —1955—^ JulyDec. ' '56 Jan.June JulyDec. ' ' Jan.June '57 JulyDec. ' ' Jan.June '58 JulyDec. ' ' JanJune 59 ' The CHAIRMAN. Thank you, Mr. Secretary. Now, Mr. Secretary, it is my recollection that the first debt ceiling was established in 1917. The ceiling was $4 billion. Is it not true that prior to World W a r I specific authorizations had to be given by Congress for every bond issuance ? Secretary ANDERSON. That is correct, sir. The CHAIRMAN. I n other words, an act had to be passed in order to issue bonds each time they were issued ? Secretary ANDERSON. Yes, sir. Under the Constitution, the Congress has the power to borrow money on the credit of the United States. The CHAIRMAN. I S it not true that prior to 1917 our national debt was about $1 billion ? I think that is correct, and that there was no need of a limitation on the total amount of bond issues because prior to World W a r I there was virtually no public debt. What I want to emphasize is that historically Congress has controlled the Federal debt by statutory limitations of one form or another. Secretary ANDERSON. That is correct, sir. The CHAIRMAN. And the same situation, I think, exists in practically all of the States and localities, namely, that a State is limited by its constitution or otherwise in the amount of money it can borrow and localities are likewise limited. I simply make that as a statement of historical fact because some people think that a ceiling, a debt ceiling by Congress has no place in our economy. 21297—58 2 12 DEBT CEILING INCREASE Secretary ANDERSON. Mr. Chairman, if I may, in the statement which I submitted to the House Ways and Means Committee, I outlined a pretty detailed history of the debt situation. The CHAIRMAN. Yes; that is in the table, is it not ? Secretary ANDERSON. N O ; it is not in the table. Well, it is, in Dart. But the whole history of how this delegation has been given from the Congress to the Secretary of the Treasury is set out in the House Ways and Means Committee statement. Senator KERR. There is attached to your present statement the debt limitation history of legislation. Secretary ANDERSON. F o r 40 years; yes, sir. The CHAIRMAN. YOU are familiar with the fact that, in 1953, in January, I think it was, the year of 1953, Mr. Humphrey, the then Secretary of the Treasury, asked for an increase in the public debt from—increase in the public debt ceiling from—$275 billion to $290 billion. Secretary ANDERSON. Yes, sir. The CHAIRMAN. That was passed by the House at the $290 billion figure. I t then came before the Senate Finance Committee, as some members of the committee will recall, and after very exhaustive hearings, notwithstanding the fact that the Secretary of the Treasury, Secretary Humphrey, said there wrould be a panic, that we could not pay our bills, the committee rejected, in toto, this $15 billion increase. There was no panic and wre paid our bills. Then, a year later, Mr. Humphrey asked for $10 billion increase on a permanent basis, and that likewise passed the House, and, in lieu of that, and I happen to have offered the amendment, the Senate, on August 24, 1954, adopted a temporary increase of $6 billion, which made the total debt limit $281 billion. That limit was continued for 2 years, and the following year it was reduced by $3 billion, and then, on July 1 last, with the approval of Mr. Humphrey, the $3 billion increase was permitted to expire. In other words, continuation of that $3 billion increase was not asked by the administration, Mr. Humphrey, or you. I remember you wrote me a letter saying that you hoped very much it would not be necessary to ask for it. I simply bring that out to show the history of the conditions now confronting us. I would like for you to cite for the committee, in as much detail as you can, the conditions that have changed since August, when both you and Mr. Humphrey acquiesced in the expiration of this temporary $3 billion, that now make necessary an increase of $5 billion which you request on a temporary basis to expire on June 30, 1959. Secretary ANDERSON. Senator Byrd, in the—when I assumed this responsibility in July, one of the first studies I made was with reference to the ability of the Treasury to operate within the debt limit. At that time, it was anticipated that we would have a substantial surplus during the fiscal year 1958. There has, of course, been a decline in revenues from what was anticipated back last summer, and we are now anticipating a small deficit. This results from about $868 million additional expenditures that are planned by the Department of Defense, as well as a decline of about $1,100 million in revenues. DEBT CEIUING INCREASE 13 I t was not without misgivings that I undertook to operate within the $275 billion debt limit last year. I w^as motivated, first, by the fact, that any request for the increase of the debt limit would have had to come at the very end of the Congress, and it was with some reluctance that I wanted to come and ask for this debt ceiling without having, personally, a little more experience in trying to live within it. If the Senator will recall, I did say in my letter that we would make every effort to live within the debt limit, but that it might very well be necessary to resort to some more costly expedients. We have, since that time, borrowed money for the Federal National Mortgage Association on two occasions from the public, in part because of the necessity of maintaining reasonable balances, and in part because the statute with reference to the Federal National Mortgage Association indicates that we should, from time to time, seek funds from the public. I would say, therefore, that, preliminarily, the changed conditions which I would cite in response to your question are moving from what was anticipated to be a surplus condition to a deficit condition, because of the decline in revenues and increased expenditures. Senator MARTIN. Mr. Chairman, would it be all right to interject a question there ? The CHAIRMAN. Senator Martin. Senator MARTIN. I think a little bit of the detail on the decline of expected revenues would be helpful to our committee. Secretary ANDERSON. YOU will remember, Senator Martin, that we make what is called the midyear review of September or October of each year, and at that time we anticipated that the revenues would be about $100 million under the revenues which were anticipated at the time of the submission of the budget in January. However, there has been a subsequent decline in the revenues, so that we are now anticipating about $1,200 million less for the end of the fiscal year, June of this year, than was anticipated at the time the budget was formed in January of 1957. Senator MARTIN. Is that a general decline, or is it particularly from corporations or individuals ? Secretary ANDERSON. For the most part, it is a decline in individual income tax. The CHAIRMAN. Isn't it true for the next year, the next fiscal year, yor- -^timate an Wrease? Secretary ANDERSON. That is correct. The CHAIRMAN. Something like $3 billion ? Secretary ANDERSON. $2 billion. The CHAIRMAN. $2 billion? Secretary ANDERSON. Yes, sir. The other thing, Senator Byrd, that I think influences me is this: I n the first place, I am sure in my own mind that the Treasury ought to maintain reasonable working balances in cash. What is reasonable? The minds of men might very honestly differ on this subject. But it has occurred to me that, in an operation where approximately $400 billion flows, on an annual basis, in and out of the Treasury, and where we spend on an average of $1,500 million each 5 working days, it woud not be an unreasonable request to maintain an average working balance equal to about 12 days' expenditures or $3,500 million. 14 DEBT CEILING INCREASE A t the same time, with the management of the debt as large as it is, and calling this year for some $50 billion of refinancing other than the $22 billion in 90-day bills, and $3 billion in tax-anticipation bills, that some reasonable flexibility would put us in a position of doing a much better job so far as the country is concerned. There is one other factor. I t seems to me that, in a country of this size and in an operation of the kind in which we are engaged, there ought to be some reasonable margin for contingencies. I have in mind, for example, that technological breakthroughs in our military organization might make it desirable to procure some of the weapons of our protection much more rapidly. I have in mind the fact that as we make a budget and as Ave project our expenditures on the budget of the message, this Congress may very well make changes in those rates of expenditures. And I have in mind that even though we do our very best in trying to judge the way in which the economy of the country will move, judging for 17 and 18 months ahead is a difficult question, and I recognize all of us can be fallible about that. The CHAIRMAN. I would like to simplify the fiscal situation for this fiscal year: The original budget estimated that the surplus on the 30th of next June would be a billion and a half. Senator KERR. May I understand that better ? The CHAIRMAN. When the budget was presented for the current year, it was estimated that there would be a billion and a half surplus. Senator KERR. I n this current The CHAIRMAN. Current budget year. Now it is estimated that there will be a $500 million deficit. So that is a $2 billion difference. Now, you were compensated in part for that by selling the F N M A bonds for $802 million so your actual shortage on your estimate of this year is about $1.2 billion, isn't that correct ? Secretary ANDERSON. T O that extent Treasury working balances are protected but the $800 million does not go against the deficit. The CHAIRMAN. The $800 million was included within the debt ceiling when it was originally loaned, when you originally bought the F N M A bonds and those bonds were sold then and you have got the cash for them ? Secretary ANDERSON. And part of the securities were retired within the ceiling. The CHAIRMAN. But you got cash, you got $802 million in cash which was previously held for the Treasury ? Secretary ANDERSON. That is correct, sir. The CHAIRMAN. S O the difference there is now a question for this fiscal year of $1.2 billion. I n other words you estimated a billion and a half surplus, you now estimate a $500 million deficit, that is a difference of $2 billion. You got $802 billion from a source that had heretofore been under the debt limit so you actually have a shortage of $1.2 billion on your cash balance under the debt limit; that is correct, is it not? Secretary ANDERSON. S O far as operating balance is concerned. The CHAIRMAN. That is for this fiscal year? Secretary ANDERSON. Yes. DEBT CEILING INCREASE 15 The CHAIRMAN, If you are asking for $5 billion you must contemplate a deficit for other years. I t seems to me that your request is not justified miles you think there would be a substantial deficit in the next fiscal year ? Secretary ANDFRSON, Senator Byrd, even though you do not operate with a deficit, you still have the periods during which you collect your taxes in the latter half of the year and you are paying your bills whenever they are presented, part of them will be presented during the period. The CHAIRMAN. I know, but that has existed, Mr. Secretary, for a long time and the condition is better now than it was because these peaks and valleys are being ironed out. Secretary ANDERSON. There will still be about 2 years. The CHAIRMAN. But they are in much better condition in that respect. That was the point Mr. Humphrey made, Secretary ANDERSON. Yes. The CHAIRMAN. NOW—it was over a period, when the Secretary ANDERSON. Five-year period. The CHAIRMAN. Three years have expired and the condition has been improved since Mr. Humphrey first asked for an increase in the debt limit. Secretary ANDERSON. YOU have 3 years. The CHAIRMAN. But there is not as much variation as before. You are catching up with it, by advancing payments. Secretary ANDERSON. There is a slight decrease in the variation; yes. " _ \ The CHAIRMAN. Well, there is considerable decrease. I want to make it clear that I shall vote for necessary increases in military funds, but what disturbs me is that you are evidently contemplating a continuation of this deficit spending beyond this fiscal year, although the budget submitted indicates a $500 million surplus on June 30, 1959. Secretary ANDERSON. Even if we have a budgetary surplus of $500 million in 1959 we are still going to have some very difficult periods if in fact we should maintain reasonable working balances and have some flexibility within the ceiling of the debt. If you will refer to table I I I , for example, Senator Byrd, this would be based upon the assumption that you would operate pretty well within the budgetary limitations, but if you will look at the right hand figures you will notice that on March 15, for example, if we have a working balance of three and a half billion or 12 days expenditures, we will have under the current circumstances a public debt that is above the amount which is currently authorized of $275 billion—we will be $1.2 billion above—and if we have the provision for flexibility, then we are right up against the $280 billion that we are suggesting, or $279.2 billion. Senator KERR. That is $0.6? Secretary ANDERSON. Yes $276.2 billion before the allowance. Now, then, to the extent that circumstances worsen, either because we do not collect as much revenue or to the extent to which we are in error in anticipating the amount of bills that we are going to have to pay, our circumstances will be that much worse off. Senator KERR. January 15 shows $279.9 ? Secretary ANDERSON. Yes, sir. 16 DEBT CEILING INCREASE The CHAIRMAN. That situation has existed, of course, for some time. We have operated under it. You are aware of the fact that there exists today $70 billion unexpended appropriated balances ? Secretary ANDERSON. Yes, sir. The CHAIRMAN. I s it not true that the only protection that Congress has got, the people have got, against the wasteful expenditures,, lies in the debt limit ? I mean that is practically the only check on expenditures now ? Secretary ANDERSON. Senator Byrd, it is certainly one of the primary checks, and I subscribe to the philosophy of having a debt limit, and of making requests for increases in the debt limit upon a limited basis, and of having the limit reviewed by this Congress from time to time. I think it is a healthy thing. The CHAIRMAN. YOU approve of the principle of a temporary increase requiring action by the Congress ? Secretary ANDERSON. I do, sir. The CHAIRMAN. Let's proceed a little further: Of course, no one argues you should not have a substantial balance; I have never argued that at all. The question is the amount of the balance and also the fact that we must bear in mind that the cash balances in the banks do not bear interest. That was all discussed at the time that Mr. Humphrey made his request in 1954. Congress is in session a good part of the time and the ceiling can be increased in the case of an emergency. On the basis of conditions as you see them now, do you estimate a deficit for fiscal year 1959 ? Secretary ANDERSON. Senator Byrd, I do not. Let me say, of course, that, when you are in the budget process, one has to make a judgment of what is going to happen to the economy for a period of 17 or 18 months ahead, and it would be a much simpler thing, from my point of view, if those judgments could be made within a range of a few millions or hundreds of millions of dollars. The budget process is such that we finally have to come down to making what are precise judgments in the realization—at least, so far as I am concerned—that no one of us is probably wise enough to pick out precisely the amount of revenue that w^e will collect that far ahead. I should like to point out to the Senator some of the factors which went into our thinking in trying to make the budget, the estimates which we have made with reference to our receipts. And that is a realization that we have come to the end of a very strong period of capital investment. Since 1946 we have had a capital investment in this country of more than $300 billion. This is an amount of money that would be equal to the cost of World W a r I I . A great portion of that capital investment was made within recent years. By the very process of capital investment, plant expansion, and that sort of thing, businessmen plan, build, and expend not only precisely what they need for a given moment but for something beyond that. DEBT CEUiEN© INCREASE 17 I think during the past several months we have seen a period in which we have run toward the end of one of these great expansion periods. Then comes a period of readjustment in the business cycle, and the business community makes arrangements for the kind of things it has done in the past. Now then, on a relatively short term from the statistical evidence which has been offered, and which has been available to us, from the kind of people that I see and talk with, I think that a good many adjustments in output and inventories and materials have been made. During the last several months the balance in the inventory picture has, I think, improved substantially. There has been a very prompt and responsive adjustment in the yield of stocks and bonds and in interest rate levels. Credit availability is adjusting to provide more opportunities for investment in new projects. There is apparently some increase in residential housing with elements of strength in the period ahead. As there has been some decline in the requirements for private investment, there has been a step up of certain State and local programs. The defense spending will be stepped up, and such programs as the highway programs and the like will be coming more into being. The retail-sales situation, which I am sure the Senator is aware of, has demonstrated a relatively high confidence in the American people during this period. Now on a longer range we have a growing population in the country, and a population that is constantly trying to improve its standard of living, constantly increasing demands. We have an exceedingly large research and development organization in all kinds of companies that are going to open up new opportunities by science and technological advances in ways of making things. We have a labor force that is growing at the rate of about threequarters of a million workers per year. The output per man-hour in the nonf arm sector of our activity has gone up at a rate of about 2!/2 percent per year. We have developed over the years a financial system that provides not only cushions but capable flexibility of meeting varying demands. And I think that perhaps as important as anything else is a willingness, demonstrated by fiscal agencies, to utilize whatever mechanisms are at their command to be of as much assistance as they can in this kind of a situation. Now we have an economy that has been operating between 430 and 440 billions of dollars a year on a gross national-product basis. During the past, for example, between 1954 and 1955, personal income went up from about $278 billion to $305 billion. From the period 1955 to 1956 it went up from $305 billion to $327 billion. During the period 1956 to 1957 it went up from $327 billion to roughly $343 billion. Even if there is an increase in 1958 of something less than half of that rate we think there is reasonable judgment supporting a belief that we would have a $2 billion increase in taxes over the period, and I say this because, Senator, I fully realize that no man can find things 18 DEBT CEILING INCREASE precisely but in order to give you the background of the kind of things that have gone into the problem. The CHAIRMAN. YOU are not disturbed about the fact that the reports indicate that the corporation income has declined in the second and third quarter of the fiscal year ? Secretary ANDERSON. Yes, sir; I am disturbed every time I read a report The CHAIRMAN. Personal income also has shown a substantial decline ? Secretary ANDERSON. Well, the percentage decline in personal income has been relatively small. The CHAIRMAN. But you are convinced from what you know now, that in 1959 we will end up with a balanced budget ? Secretary ANDERSON. I would want to say that I have confidence that during the fiscal year 1959 we will assume a reasonable rate of sustainable growth that would justify our belief that we would have a $2 billion increase in income receipts. Now, the existence or not of a balance at the end of that period, would, as the Senator knows, depend upon how well our judgments prove to be correct and the rate at which we spend money. The Senator has pointed out that we have not only what is being asked for for new obligational authority, but Ave have quite a substantial amount from prior appropriations, and we in the Treasury would not be able precisely to control those expenditures. The CHAIRMAN. Well, the executive branch of the Government can ? Secretary ANDERSON. Yes, sir. The CHAIRMAN. Let's go back to the discussion of deficit spending just once more. We have lost, as you know, more than one-half of the purchasing power of the dollar since 1940. During that period we had net deficit spending of $225 billion. Do you think that was a major cause of the loss of the purchasing power of the dollar ? Secretary ANDERSON. I always find it difficult to select the proper adjective. I would say that I think it is a very important factor, Senator. The CHAIRMAN. I S it the most important factor ? Secretary ANDERSON. Senator Byrd, I would not want to say categorically that it is the most important. I think one simply has to weigh the fact that we have an economy that is so large and so complex and affected by so many different forces, that it is very difficult to reduce it to the terms of saying "These are the most important things in order"—but I certainly agree with the Senator The CHAIRMAN. YOU would put it near the top of the list ? Secretary ANDERSON. This is one of the most important. The CHAIRMAN. The alternative of asking for an increase in the ceiling would be to reduce some so-called nonessential expenditures or not necessary expenditures. Do you think the present budget has made any headway in that direction ? Secretary ANDERSON. There are, of course, a number of areas in which a number of programs have been reduced and in which there are less expenditures expected. DEBT CEILING INCREASE 19 One of them is the actual expenditures from the Export-Import Bank. While it was never a part of the expenditure program, there has been a considerable revision in the way that we are approaching the school problem rather than to approach it from construction. The CHAIRMAN. Construction though, was not approved by Congress ? Secretary ANDERSON. N O , sir; I say it was not. I say simply there was a difference in approach. A great deal, of course, is dependent on what happens to the decision of the Congress with reference to the postal service, which was taken into our calculations. Public assistance grants would be down. The CHAIRMAN. A t that point is it a sound budgetary procedure to include as a cash receipt in the budget an increase in postal rates which have not yet been enacted by Congress ? Secretary ANDERSON. I t seems to me that in making our calculations, wThich are calculations for what we would expect, that we must take into consideration that the recommendations which are made by the President would succeed. Now, whether or not they actually do succeed, of course, varies the total result. The CHAIRMAN. What do you estimate as the total reduction in the budget in the so-called domestic civilian expenditures as compared with the budget of the current year ? Secretary ANDERSON. Senator Byrd, I do not have that figure; we would be glad to get it for jou. The CHAIRMAN. We will get it from the Budget Director when he comes before the committee. I n regard, Mr. Secretary, to this $500 million of gold which is being held by the Treasury, Mr. Humphrey, as you will recall, sold $500 million. Secretary ANDERSON. Yes, sir. The CHAIRMAN. I S there any objection to using that gold that is lying dormant ? Secretary ANDERSON. I would have no objections to its use if it became necessary. The CHAIRMAN. Then you have got a cash asset, so to speak, that you can realize on at any time to the extent of $500 million in addition to the figures you have presented to the committee ? Secretary ANDERSON. That is correct, you could utilize your gold. The CHAIRMAN. YOU see no objection to using it? Secretary ANDERSON. There would be no objections. The CHAIRMAN. W h a t would be the consequences of a continuing inflation and a further decline in the purchasing power of the dollar % Secretary ANDERSON. Well, if you purchased goods at the same rate or at an accelerated rate and if inflation continued, you would simply get less for what you purchased. Therefore, if you were going to have a quantity of goods as presently contemplated, you would be paying more, and the squeeze on the Treasury payments would be even greater. The CHAIRMAN. If they have lost one-half of the purchasing power of the dollar in the past 17 years, suppose we lost one-half again of the purchasing power of the present dollar. 20 DEBT CEILING INCREASE Would that create a very disastrous situation ? Secretary ANDERSON. I t would be a very disastrous and undesirable situation, Senator. The CHAIRMAN. I n other words, any further loss in the purchasing power of the dollar would possibly have very bad consequences ? Secretary ANDERSON. I w^ould certainly think we ought to make every effort to avoid any additional losses. The CHAIRMAN. Our total tax revenue from all sources, State and National and local, social security taxes, etc., amounts to $112,687 million. That is a correct figure, I think. Is that a burden that you think the American people can indefinitely stand? This is the local taxes, the State taxes, everything that is paid in cash in the way of taxes. Secretary ANDERSON. Senator Byrd, I would certainly hope that the time will come when the tensions which exist in the world, and the problems with which the Nation and the rest of the present world are confronted are such that we can alleviate a part of this burden, and I am sure that it would be helpful in developing our own standards of living and our own way of life if those burdens could be alleviated. The CHAIRMAN. I t is a very large burden in relation to that? Secretary ANDERSON. Yes, sir. The CHAIRMAN. Just one more question. I think you and I agree on the fact we have two fronts here; we have a military front which we must keep up and on the other front we must maintain a strong economy in this country. Secretary ANDERSON. I agree with you, sir. The CHAIRMAN. Mr. Secretary, I want to present to the committee and to you a plan with respect to the increase in the debt limit of $278 billion, which is based on Treasury figures. The only difference is that it allows for 3 billion cash on hand instead of three and a half, which is contemplated in the administration proposal, and it utilizes the $500 million in gold. I won't ask you to pass judgment on it today but I want to submit it to you for your consideration and ask as to whether or not the figures in this table I have prepared are accurate. I t shows substantial leeways, some as high as $12 billion at one time. The lowest is approximately $5 billion for a temporary period, if you get $278 billion, keep $3 billion on hand, and use the gold. Of course, I have in mind always that Congress can change the ceiling if the necessity arises, so I would like to submit this proposal to you and have your comment before the committee takes action. I wish especially that you would check the accuracy of these figures which I feel certain are correct because they are based on your estimates. I will ask that copies of the table be passed to the members of the committee and also to the press. DEBT CEILING 21 INCREASE (The document referred to is as follows:) Leeway under $278 "billion temporary statutory debt limit—Allowing billion balance^ including $500 million from unused free gold for $3 (Based on Treasury estimates of outstanding debt subject to limit, operating cash balance, and unusep free gold) [In billions] Date Leeway under Outstanding $278 billion d e b t subject limit (comto l i m i t posed of $3 (adjusted t o billion cash maintain a balance including u n c o n s t a n t $3 billion cash used free gold, and u n u s e d balance) debt authority) 2d half, fiscal y e a r 1958Jan. 31,1958 Feb.15 F e b . 28 M a r . 15. M a r . 31 Apr. 15 Apr. 30 May 1 5 - . May 31.. J u n e 15 J u n e 30 Fiscal y e a r 1959: J u l y 15, 1958-_ J u l y 31 . __ Aug. 15-. Aue\ 3 1 - _ S e p t . 15 _. Sept. 30 $274.0 274.6 273.9 275.2 269.4 270.8 271.2 271.5 271.1 272.9 268.3 270.6 271.6 272.5 272.6 274.2 270.3 $7.0 6.4 7.1 5.8 11.6 10.2 9.8 j 9.5 9.9 8.1 12.7 10.4 9.4 8.5 8.4 6.8 10.7 Leeway under O u t s t a n d i n g $278 billion d e b t subject l i m i t (composed of $3 to l i m i t (adjusted to billion cash balance inmaintain a cluding unc o n s t a n t $3 billion cash used free gold, and u n u s e d balance) debt authority) Date Fiscal y e a r 1959—Con. Oct. 15 Oct. 31 N o v . 15 Nov. 30 Dec. 15 Dec. 31 Jan. 15,1959 Jan. 31 Feb. 15 F e b . 28 M a r . 15 M a r . 31 Apr. 15__ Apr. 30 ___ M a y 15 M a y 31 J u n e 15 __ J u n e 30 $8.6 7.3 6.7 7.0 4.9 6.7 5.1 5.9 5.2 6.6 5.4 10.7 9.2 8.9 8.6 8.9 7.1 12.7 $272. 4 273.7 274.3 274.0 276.1 274.3 275.9 275.1 275.8 274.4 275. 6 270.3 271.8 272.1 272.4 272.1 273.9 268.3 (The following letter was subsequently submitted by the Secretary of the Treasury commenting on the chairman's plan as printed above:) THE SECRETARY OF T H E TREASURY, Washington, Hon. HARRY P. D. C, January 28, 1958. BYRD, Chairman, Senate Finance Committee, Washington, D. C. MY DEAR MR. CHAIRMAN : The figures contained in the statement submitted by you during my testimony yesterday on H. R. 9955, a bill to amend the statutory debt limit, showing the estimated outstanding public debt subject to the limitation, adjusted on the basis of maintaining a $3 billion cash balance, including gold, reconcile with the figures contained in table 3 furnished to the committee in my testimony. I would like to point out that the figures in your table showing leeway under a $278 billion limitation, including a $3 billion cash balance, including gold, are predicated upon cash balances of $1 billion less than the cash balances projected by the Treasury. The cash balance figures projected by the Treasury of $31/£ billion excluded gold of $500 million. I would also like to point out that the actual cash balances of the Treasury during this projected 18-month period ahead will vary from the assumed constant figures shown in Treasury table 3. Our cash balances will be influenced by decisions during this period in the future concerning the manner and amounts of securities that may be issued to raise cash or the securities that may be issued to refund maturing securities. They will also differ because of the need to keep high end-of-month balances during some months to meet heavy expenditures which are concentrated during the first week or 10 days of the following months. In each month of the year, heavy expenditures occur during the first few days for social security and other benefit and pension payments, and in some months certain classes of taxes are not payable to the Treasury until the 22 DEBT CEILING INCREASE last half of the month. These monthly swings in the T r e a s u r y ' s cash balances can be a n y w h e r e from $1 billion to $3 billion between the end of 1 month until the middle or end of the following month. For example, between J u n e 30 and July 15, 1956, the T r e a s u r y ' s cash balance w a s reduced from $5.7 billion to $4.2 billion with practically no change in t h e public debt, a n d was further reduced by July 31 to $3.5 billion w i t h o u t any change in t h e public debt, a decrease of $2.2 billion. The T r e a s u r y ' s balance on November 30, 1956, amounted to $5.1 billion and on December 15 it amounted to $3.2 billion, a drop of $1.9 billion with only $0.1 billion reduction in t h e public debt. I n addition, the cash balance w a s reduced from $6.7 billion on September 30, 1957, to $4.3 billion on October 15, a decrease of $2.4 billion, accompanied by a reduction of $0.4 billion in the public debt. Swings of this n a t u r e a r e occurring constantly throughout the year. W e are, Mr. Chairman, fully appreciative of your desire to encourage as much economy a s possible in the expenditure of our public funds and t h e motivation wiiich underlies your proposal. We share with you a m u t u a l concern of being economical in our operations. We should like to r e i t e r a t e our assurances to you and the members of your committee t h a t if the debt limit is extended as we have asked, wTe will not relax our efforts or our influence to achieve our common objective. We continue to believe, however, t h a t our request for t h e $5 billion increase in the debt limit is under all considerations in the public interest. We have sincerely tried to d e m o n s t r a t e our reasons for this belief to the members of your committee. W e cannot bring ourselves to conclude t h a t the debt limit which you suggest would, in the opinion of the T r e a s u r y and in the judgment of t h e T r e a s u r y experts whom we have asked to examine your suggestion with us, provide sufficient allowances for a reasonably needed flexibility in financing and for contingencies in addition to the responsibility for meeting our projected budgetary payments. We recognize, of course, t h a t there is always the additional consideration of t a k i n g into account m a r g i n s of error which necessarily m u s t go into our calculations in long-range projections. We must, as well, realize the change of p r o g r a m i n g and the r a t e of expenditures t h a t may occur because of the judgm e n t s of the Congress or the judgments of other D e p a r t m e n t s of t h e Government which, more directly t h a n we, influence our r a t e of payments. W e sincerely hope t h a t you and your committee will continue your examination of our proposals and t h a t you will find them reasonable a n d p r u d e n t . W i t h w a r m e s t regards, I am Sincerely yours, ROBERT B. ANDERSON, Secretary of the Treasury, The CHAIRMAN. Thank you, Mr. Secretary. Senator K e r r ? Senator KERR. Mr. Secretary, is it your opinion that this requested increase in the debt limit, if granted, could result in savings of interest on the public debt ? Secretary ANDERSON. I think it could, sir. Senator KERR. I t is your opinion that the additional flexibility it would give you in determining percentagewise whether issues could be shorter term or longer term could be of material benefit to the Treasury in meeting its responsibility for the management of the public debt? Secretary ANDERSON. I think it would give us a kind of flexibility that would be advantageous from the standpoint of the dollars which might be saved, and I think that it would be advantageous also from another point of view: We have one great market in this country, made up of many, many segments to which people resort to finance all kinds of operations. The numbers of times which the Federal Government has to go to that market, whether for refinancing or for cash or for whatever pur- DEBT CEILING INCREASE 23 pose, is a disturbing element in market arrangements, which would be made by citizens, individuals, States, all other people. If, therefore, we had a margin of flexibility so that we might run larger risks at the time of our financings, or to deal in larger volumes of financing at one time, we would, I hope, be able to get some better balance in the debt, and by utilizing the market less frequently, we would be less of an impediment to other elements of our business w^orld than we are currently. Senator KERR. Then is it safe for me to assume that you agree with me that the Treasury in the management of the public debt can have a decided influence on the rate of credit on the public debt? Secretary ANDERSON. Well, from our point of view^, of course, I conceive it to be my duty to manage the debt as economically as we -can and therefore to try to determine not what market conditions ought to be but what market conditions are. Neverheless, if I have to take into account the rate at which I might get attrition, then I have to be influenced to some extent by the offering, by calculating the rate so it can minimize that attrition, if I do not have the flexibility. Senator KERR. Flexibility ? Secretary ANDERSON. That is right. Senator KERR. Then am I correct in assuming that you agree with me that the Treasury can be effective in the matter of havmg influence on the interest rates paid by the Treasury on the public debt ? Secretary ANDERSON. Yes; in the way in which I have stated. Senator KERR. I S it a fact that lack of the greater debt limit has resulted in the past fiscal year in expenses which would not otherwise have occurred in connection with operations of the Defense Department where they found it necessary to terminate contracts or stretch out contracts or adopt a new time schedule for outstanding contracts? Secretary ANDERSON. Senator Kerr, I have never tried to tell any department what theSenator KERR. I am not asking what you tried to tell them. Secretary ANDERSON. Yes. Senator KERR. I am just asking you as to the facts about what the situation was. Secretary ANDERSON. I am sure that the actions, not only of the Defense Department but others, have taken into account the nearness that we were to the debt limit and have been governed in making some of their decisions by the fact that we were this close. Senator KERR. With the least possible result that costs were increased in connection with contracts either that had to be terminated •or a new time schedule effected. Secretary ANDERSON. That is correct, sir. And not only that, but the schedules would be modified. Senator KERR. N"OW, it has been indicated to me, and I am sure you know, or I hope you know whether it is true or not, and I would like to know whether it is true or not, that there have been times when the Defense Department, even though they did not terminate or partially terminate or implement a new time schedule on contracts, have had to be slow in the payment to contractors furnishing equipment and supplies to the Defense Department. 24 DEBT CEILING INCREASE Secretary ANDERSON. I think that what actually happened was to decrease by some 5 or 6 percent the amount of progress payments on certain of the contracts. Senator KERR. Well, that was put into effect after the contracts were let, and which had been let on either specifications or accepted understandings that the progress payments would be made at the higher rate. Secretary ANDERSON. Yes, sir. Senator KERR. And that resulted in the contractors having to go more into the market for money and oftentimes at a higher carrying charge to them than they had contemplated, which was then reflected in an increased cost to the Defense Department if it were a cost-plus contract. Secretary ANDERSON. That is correct. Senator KERR. Is it also true that under the directives of the Budget, the Defense Department and other agencies of the Government have had to postpone starting of work for which Congress had appropriated the money at later periods in this fiscal year so that they might bring about the result that a part of the liability would mature in a subsequent fiscal year instead of this fiscal year ? Secretary ANDERSON. The extent to which this has been done I do not know, but I am sure that judgments have been made of this nature because of the closeness that we were to the debt limit. Senator KERR. NOW you use a figure of $2 billion in connection with the budget, the balanced aspect of the budget for fiscal 1959 as compared to this year. That was not your estimate of what the surplus would be, but that was your estimate of what the increased revenue would be. Secretary ANDERSON. That is correct, sir. We assumed that corporation collections would be about the same and that individual income tax will be up. Senator KERR. Well, howT much of that result did you figure would come from the 5-cent postage stamp ? Secretary ANDERSON. Well, so far as the income tax revenues are concerned, it would not be effected by the postage-stamp rate. But as far as arriving at whether or not we would be able to meet our expenditures out of our current revenues, we took into consideration the postal rate moreover. Senator KERR. The estimated surplus of how much for the year? How much was used ? Secretary ANDERSON. $500 million. Senator KERR. Was based on Congress fixing postage stamp costs at 5 cents instead of 3 cents, was it not? Secretary ANDERSON. That is correct. Senator KERR. Was it not also based on an assumption that there would be some difference brought about by congressional action in the handling of the highway funds ? Secretary ANDERSON. I do not believe that the highway funds were figured in that calculation. Senator KERR. W a s there not a proposal to shift certain taxes now going into the highway trust fund ? Secretary ANDERSON. Oh, yes, sir. Senator KERR. Being in the general revenue fund ? DEBT CEIMN1G INCREASE 25 Secretary ANDERSON. There was a proposal to take out the costs of collecting the highway funds. A n d then, of course, the costs of the jet fuel would be shifted to the construction of airport facilities. Senator KERR. And thereby decreasing the trust fund for highways by that amount ? Secretary ANDERSON. By that amount. Senator KERR. And making that amount Secretary ANDERSON. Available. Senator KERR. Conditional in a general revenue fund? Secretary ANDERSON. Making it available for other purposes; yes, sir. Senator KERR. Was that $500 million surplus not also based on the assumption that Congress would change the law and pay for those highways now being built out of the general revenue fund through the public lands out of this trust fund ? Secretary ANDERSON. Yes, sir. Senator KERR. I n other words, $500 million surplus was based upon a number of assumed contingenices for which there is no positive assurance of their being results. Secretary ANDERSON. I t was based upon the assumption that the recommendations in the budget message, would be carried through, and of course that is subject to the determination of Congress. Senator KERR. But without action of the Congress, then those assumptions, of course, would not be valid ? Secretary ANDERSON. That is correct, sir. Senator KERR. NOW, it was also based on an assumption that there would be certain restrictions by the Congress in nondefense spending, was it not ? Secretary ANDERSON. Yes, certain programs were reduced. Senator KERR. Such as benefits to veterans, and what else ? Secretary ANDERSON. Well, there is quite a list of them. Senator KERR. Would you give them to us ? Secretary ANDERSON. There were reductions in programs in a number of things—public assistance. Senator KERR. H O W much did the President estimate the Congress would reduce public assistance in order to make that $500 million surplus possible ? Secretary ANDERSON. About $13 million. Senator KERR. And would you give me the other assumed reductions in nondefense spending? Secretary ANDERSON. Yes, sir. There is a list of a great many here. I would be glad to supply the Senator with a complete list. Senator KERR. May I have it? Secretary ANDERSON. Yes, sir. Senator KERR. I am going to put it into the record. I just want to look at it at this time. The CHAIRMAN. I would just like to state to the committee that the Budget Director will appear before it. Senator KERR. Eeduction of $342 million to the Export-Import Bank; $11 million reduction in the assistance for public schools in federally impacted areas; $702 million, improvement in the postal service; $150 million reduction in Veterans' Administration operations ; $27 million reduction in Federal Housing Administration; $22 26 DEBT CEILING INCREASE million reduction in miscellaneous housing; $29 million reduction in small business operations; $129 million reduction in veterans' benefits; $6 million reduction in veterans' hospital care and hospital construction ; $9 million, miscellaneous veterans' services; $4 million reduction in veterans' insurance and indemnities; $365 million in Commodity Credit Corporation; $62 million reduction in Farmers' Home Administration ; and other items totaling $1,999 million. I would like for that tabulation to appear in this record at this place, Mr. Chairman. The CHAIRMAN. Without objection, it will go in the record. (The tabulation referred to is as follows:) Specific program cuts in the 1959 budget [In millions of dollars] Fiscal years Change 1958 estimate | 1959 estimate Export-Import Bank Foreign information and exchange Assistance for schools in Federal areas Public assistance Postal service Urban renewal Federal Housing Administration Veterans' Administration: Housing functions Miscellaneous housing Highways (in the budget) Small Business Administration Federal Civil Defense Administration Veterans' readjustment benefits Veterans' hospital care and hospital constructionVeterans insurance and indemnities Miscellaneous veterans services Commodity Credit Corporation Soil bank (exclud ing conservation) Farmers' Home Administration Interior: Power marketing agencies St. Lawrence seaway Forest resources Fish and wildlife resources Recreational resources Mineral resources Federal financial management Central personnel management Total. 393 141 223 .,822 686 61 -53 145 -1 38 92 67 866 846 44 171 >,745 620 270 41 44 171 65 78 63 508 124 51 139 212 1,809 -16 56 -80 -5 -23 7 63 64 737 840 40 162 2,380 604 208 38 19 169 58 73 56 507 10, 270 8,276 -342 _2 -11 -13 -702 —5 -27 -150 -22 -31 -29 -3 -129 -6 -4 -9 -365 -16 -62 -3 -25 -2 -7 -5 -7 -1 -16 Senator KERR. Can you remember when any other budget was ever given to the Congress and a surplus predicted on the assumption that Congress would reduce the benefits and programs that it had implemented and had been carrying on by the amount of $1,994 million ? Secretary ANDERSON. I frankly do not have in mind sufficiently other budgets to compare them, Senator. Senator KERR. If it should happen that the revenues estimated or as estimated, and Congress in its wisdom or lack of wisdom, but in the exercise of its constitutional power, decided to have the same program of governmental operation in fiscal 1959 that it had in fiscal 1958, then instead of there being $500 million surplus, there would be a $1.5 billion deficit, would there not ? Secretary ANDERSON. Yes. DEBT CEILING INCREASE 27 Senator KERR. I n the event the revenues are not as estimated and Congress continues its same program, then the deficit would be increased to the extent that the revenues failed to meet up to the assumptions. Secretary ANDERSON. T O the extent that we are incorrect in our revenue estimates, the problem is increased, yes, sir. Senator KERR. NOW, the President has repeatedly stated that there would be a decided upturn in the business activity and dynamics of the economy during the second half of 1958 ? Secretary ANDERSON. Well, as I recall, he has said sometime during the year. Senator KERR. And that, of course, is the beginning of fiscal 1959. Secretary ANDERSON. Yes, sir. Senator KERR. And his estimates of revenue are based upon the accuracy of his belief and forecast that there would be a decided upturn in the business activity of the Nation. Secretary ANDERSON. That is correct, sir. Senator KERR. NOW, if one has the decided conviction that there will not be a decided upturn in the economy of the country, then he would do well to contemplate the extent of the difference that that would make in the forecast of revenue, is that correct? Secretary ANDERSON. One would be required to. Senator KERR. Then the President's estimated $500 million surplus was also based upon the assumption that Congress would appropriate no more money for defense than he has recommended for fiscal 1959? Secretary ANDERSON. That is correct, and also that the rate of expenditures t by the Department of Defense would be as anticipated, because in addition to new obligational authority, there is this holdover. Senator KERR. YOU mean the holdover obligation ? Secretary ANDERSON. Yes, sir. Senator KERR. Which, if the Defense Department became of such a critical nature that the administration decided to try to meet it by stepped-up expenditures, would adversely affect that estimated surplus ? Secretary ANDERSON. Yes; and it would, of course, make the debtlimit problem very important, if the upswing Senator KERR. I am getting around to that. Secretary ANDERSON. Yes; pardon. Senator KERR. I am getting around to that. Now, I am not asking you to agree with my belief as to what the business conditions in the next fiscal year will be, nor am I asking you to agree with my belief of what the Congress will do, but I would like to ask you this question: Is there not in your mind, as you ask for this increased debt limit, some element of contemplation on your part of the possibilities that I have referred ? Secretary ANDERSON. There is. Senator KERR. Or your awareness of the possibility? Secretary ANDERSON. There is, Senator. I think we have to take into consideration—this is precisely one of the things we talk about in contingencies: W h a t will be the program changes made by Congress ; what will be the actual rate of expenditures that either circumstances or fortuituous technological breakthroughs and this sort of 21297—58 3 28 DEBT CEILING INCREASE thing make possible; what will be the expenditures under flexible programs when we are committed to purchase surplus commodities; and that sort of thing ? And these are the sorts of imponderables that, it seems to me, justify us in asking for some reasonable margin for taking care of the contingencies in the debt limit. Senator KERR. I will say, Mr. Secretary, that I congratulate you upon what I believe to have been the part you played in reversing the deadly, type-credit causes of this administration, the reversals that have moved in the last few months to tend to correct some of the more critical evils of the hard-money-type credit and high-interest-rate policies of your predecessor. And I congratulate you upon what I think is the tremendous saving that you are going to have a p a r t in bringing about in the cost of serving the public debt. I wish I could share the optimism of your Chief that what has been done would result in this decided upturn in the economy, but I think that you got there too late to effect so great a reversal in such a short time. Now, your estimate of the deficit for this fiscal year is how much ? Secretary ANDERSON. $400 million. Senator KERR. If you had the conviction that I do, that it would be nearer $1 billion than $400 million, you would base your estimate on the requirement for the increase in the national debt limit accordingly, would you not? Secretary ANDERSON. That would be an additional consideration. Senator KERR. NOW, the chairman asked you about the amount of deficit spending that has occurred in the last 17 years. W h a t was that amount, Senator? The CHAIRMAN. $225 billion. Senator KERR. $225 billion, and related it to the reduction in the value of the dollar as compared to the 1940 dollar. Can you tell us what part of that deficit spending occurred prior to 1946 ? Secretary ANDERSON. I think we have those tables. Senator KERR. I want to tell you there is a man that has come to the rescue of both Secretaries in this committee countless times. H e is an indispensable man. He is a living refutation on the part of some that there is no indispensable man. Secretary ANDERSON. I can say to you, Senator Kerr, that I am not unaware of the importance and capability of Mr. Mayo. Senator KERR. I want to tell you right now that if this fellow Benton gets hold of him, he will commercialize him into a greater encyclopedia than the Britannica. Secretary ANDERSON. The deficit starting back in 1940 w^as $3,918 million; 1941, $6,159 million; 1942, $21,490 million; 1943, $57,420 million; 1944, $51,423 million; 1945, $53,941 million; 1946, $20,676 million. Senator KERR. NOW, Mr. Mayo, could you tell us how much those figures total ? Secretary ANDERSON. YOU want to add them up. Mr. MAYO. Well, we can do it. Secretary ANDERSON. The debt, Senator Kerr, went from $40,440 million in 1939 to $269,422 million in 1946. That would be roughly it.. DEBT CEILING INCREASE 29 Senator KERR. All right. Now, in other words, most of that $225 billion deficit spending occurred prior to June 30,1946 ? Secretary ANDERSON. Yes, sir. The CHAIRMAN. Would you mind adding the loss in the purchasing power of the dollar at that same period ? Senator KERR. That is what I am going to ask him right there. That is the exact question I want to ask him. The CHAIRMAN. I think they should be shown together, so I want Mr. Mayo to give that. Senator KERR. NOW, would this dollar be comparing the present dollar to the 1939 dollar, or the 1940 dollar ? Mr. MAYO, They are approximately the same, Senator. Senator KERR. All right. I would like to know now what that dollar's value was each of these years. Secretary ANDERSON. All right, sir. We will get the chart. Senator Kerr, we do not have it in those terms. Could we supply that to you and the committee ? Senator KERR. I believe that fellow has either got it or Secretary ANDERSON. Can get it. Senator KERR. Can give it to us right now. Secretary ANDERSON. Suppose he works it out here for us. Senator KERR. I have no doubt that his memory capacity and ability is far greater than yours, Secretary. Secretary ANDERSON. H e will work them back. Senator KERR. I know he will. The CHAIRMAN. Well, you are working them by the year, are you not, Mr. Mayo? Mr. MAYO. A S a matter of fact, if there is a copy handy of the monetary hearings last summer, they are already in there. I didn't bring that along with me. The CHAIRMAN. I would like to see first, the deficit, and then, in the next column, how much the purchasing power of the dollar was. Mr. MAYO. Yes, sir. Senator KERR. And then, Mr. Secretary, I want you to ask him to give us the value of the 1940 dollar as compared to the 1873 dollar. Secretary ANDERSON. All right, sir; we will be glad to get that one for you. This chart does not show it by years, which is what you have requested. I t shows that the 1939 dollar had declined to about 90 cents, slightly above 90 cents, by 1941. Senator KERR. W h a t page is that on ? Secretary ANDERSON. Page 292. Senator ANDERSON. The chart is on page 338, is it not ? Mr. MAYO. T h a t is just the index again, gentlemen. Secretary ANDERSON. That is the Consumer Price Index. You would have to work it back from the Consumer Price Index. Mr. MAYO. We have it in here the other way, if I can just put my finger on it. Senator KERR. What page is the one you were talking about on ? Secretary ANDERSON. 292 is the one I was talking about. Senator Kerr, if you will look on page 418. 30 DEBT CEILING INCREASE Senator KERR. 418. I knew that boy Mayo would come up with it. Now, Mr. Mayo, I am going to ask you to help me a lot more here before we are through; 1939 is taken as the standard in this table on page 418, is it not? (The table which appeared on page 418 of the printed hearings on the Investigation of the Financial Condition of the United States is inserted in the record of this hearing on page 51.) Senator MALONE. I t is 1937 to 1939. Senator KERR. I S that correct, Mr. Mayo ? Mr. MAYO. Yes; 1939 is correct, sir. Senator KERR. Well, this shows that the purchasing power of the 1939 dollar was 71.2 cents in 1946, does it not? Secretary ANDERSON. Yes, sir. Senator KERR. That in May 1957 it was 49.7? Secretary ANDERSON. Yes, sir, 49.7. Senator KERR. NOW I would like for Mr. Mayo to tell us percentagewise the decrease from 1939 to 1946 and from 1946 to 1957, in May? Mr. MAYO. From 1939 to 1946, percentagewise, is a decline of 29 percent. Senator KERR. Twenty-nine percent ? Mr. MAYO. And from 1946, which was 71 cents Senator KERR. 71.2 cents. Mr. MAYO. To 50 cents. Senator KERR. I t was 49.7, was it not ? Mr. MAYO. That is correct. That is another 22 cents, then. Senator KERR. Well, that is 22 cents, but how much is that percentagewise to the 71.2? Mr. MAYO. That is a little less than a third. I t is about a 30-percent decline, Senator. Senator KERR. I n other words, there has been a greater percentage of decline in the purchasing power of the dollar since that deficit spending than occurred during that deficit spending, has there not? Mr. MAYO. Yes, sir, I think that is correct. Secretary ANDERSON. There has. The CHAIRMAN. The Chair would like to ask, though, that there be put into the record the amount of the deficit spending and, opposite that figure, the loss of the purchasing power of the dollar for each of these years. Senator KERR. I am going to put that in. The CHAIRMAN. The Senator from Oklahoma is speaking on another basis. Senator KERR. I am just drawing some conclusions, Mr. Chairman, from the very table that you want put into the record, and asking the witness if they are correct. The CHAIRMAN. This table does not include the deficit spending. Senator KERR. Well, but the Chairman has given it to us himself. The Chairman and the Secretary has given it to us. The CHAIRMAN. I would like the Senator from Oklahoma to read that, and at the same time show the loss of the purchasing power of the dollar in each year. DEBT CEILING 31 INCREASE Senator KERR. Then we will include in the record at this point a tabulation of the deficit spending per year by year beginning with 1940 through 1957. Senator BENNETT. Before you leave, that, Senator Senator KERR. Yes. Senator BENENTT. What I understood the chairman wanted was a single table combining these two, showing on the same line the year, the amount of deficit spending, and the amount of the decline in the dollar, year by year, so that m one sweep of the eye wre can see the relationship year by year. May I ask that the table be prepared in that w^ay ? Senator KERR. The Senator may ask that another table be prepared in that way, and I will be glad to have it in the record. I presume he is willing for me to have the tables in the record the way I have designated them. The CHAIRMAN. One table called the Kerr table and another table called the Bennett table and have both appear in the record. Senator KERR. And a third called the Byrd table. Senator BENNETT. May I ask that they all appear in the same place as nearly as possible ? Senator KERR. A S nearly as the consummation of the size and the printing will permit. The CHAIRMAN. Without objection, that will be followed. (The tables referred to are as follows:) Changes in purchasing power of the dollar and deficit financing,1 1873-1957 Value of t h e Consumer dollar (calprice index (1947-49 = 100) e n d a r year 1939=100) 1873 1913 1939 1946 1957 37.0 42.3 59.4 83.4 120.2 160.5 140.4 100.0 71.2 49.4 C h a n g e in value of t h e dollar Cents -20.1 -40.4 -28.8 -21.8 Percent -12.5 -28.8 -28.8 -30.6 2 P u b l i c d e b t , J u n e 30 A m o u n t outstanding Billions $2.2 1.2 40.4 269.4 270.5 Dollar change Billions -$1.6 -4-39.2 +229.0 +1.1 i As reflected in changes in the public debt. 2 As compiled by the Bureau of Labor Statistics except for 1873, which is based on a series published by the Federal Reserve Bank of New York. Senator KERR. NOW, then, I note here on page 418 of the investiga-r tion hearings last summer that in 1913 the purchasing powder of the actual dollar was 40 percent above what it was in 1939; is that correct, Mr. Mayo? Mr. MAYO. T h a t is correct. Senator KERR. Then I would ask you to tell me how much decrease there had been, percentagewise, in the purchasing power of the dollar from 1913 to 1939 ? Mr. MAYO. Again, about 30 percent. Senator BENNETT. Fifty percent. Secretary ANDERSON. I t is about 40, is it not ? 32 DEBT CEILING INCREASE Senator BENNETT. 1.4271. The CHAIRMAN. I do not believe even so great a man as Mr. Mayo could get these figures so quickly, so I think he should have an opportunity to go over the figures before they are printed in the record. Senator KERR. All he has to do is a mathematical calculation. Mr. MAYO. Thirty percent. Senator KERR. I think the 30 percent is correct; yes. I n other words, then, the reduction in the purchasing power of the dollar from 1913 to 1939 was approximately 30 percent; is that right, Mr. Mayo? Mr. MAYO. Yes, sir. Senator KERR. From 1939 to 1946, through 1946, it was approxi- mately 29 percent ? Mr. MAYO. Yes, sir. Senator KERR. From 19*56 through 1957, it is approximately 30 percent ? Mr. MAYO. That is correct, using the later year as the base in each case. Senator KERR. NOW, then, what is the reduction in the purchasing power of the 1913 dollar in this, the year of our Lord 1958? Mr. MAYO. Well, the dollar is currently worth approximately 49 cents as against $1.40 in 1913. That is a reduction, then, of just roughly, about two-thirds. Senator KERR. About two-thirds? Mr. MAYO. Yes, sir. The CHAIRMAN. Will the Senator from Oklahoma yield just a minute ? Senator KERR. Yes. The CHAIRMAN. Price controls operated in some of these years, and that held down the inflation, so I think for proper consideration the years in which price controls were in effect should be noted because, naturally, the inflation would not be as great in those years as it was when there was no control. So please note that, Mr. Mayo, in your table. Mr. MAYO. All right, sir. Senator KERR. NOW, then, the answer to the question as to the value of the dollar today relative to the 1913 dollar is what? Mr. MAYO. I t is down about two-thirds. Senator KERR. I t is about 33 cents ? Mr. MAYO. Yes. Senator KERR. Well, then, the question that the distinguished chairman asked the Secretary a while ago as to what would be the effect if there was as much depreciation of the dollar in the next 17 years as there has been in the last 17 years might have some light thrown on it by figuring what has happened in 1958 as compared to 1913, might it not? Mr. MAYO. Yes. Senator KERR. Because there has been just as much decrease in the value of the dollar in 1958 compared to 1913 as there will have been in another 17 years as compared to 1939 if the decrease in the next 17 years is just as much as it has been the last 17 years ? Mr. MAYO. Yes. DEBT CEIDING INCREASE 33 Senator KERR. That is correct ? Mr. MAYO. On that assumption, yes, sir; that is right. Senator KERR. Well, are my assumptions valid; are they in accordance with the figures you have given me ? Mr. MAYO. T h a t is right, on the basis of those figures. Senator KERR. I might say that I share the concern of the chairman about inflation and I am just as much interested in it as he and as the Secretary. B u t you would not say that our economy today is in a disastrous condition as compared to 1913, would you, Mr. Secretary ? Secretary ANDERSON. NO, sir. The CHAIRMAN. I think you ought to add to that the debt of 1913 and the debt of today. We had virtually no debt in 1913. Secretary ANDERSON. The question, as I gathered from the chairman a while ago, was a more rapid decline in the value of the dollar than is now indicated, so that the more rapid the decline the more severe would be the problem. Senator KERR. NOW, I think, Mr. Secretary, if you have Mr. Mayo get it for us, we will find that the 1913 dollar was just as much depreciated compared to the 1873 dollar as the 1939 dollar was as compared to the 1913 dollar. And yet, though we were debt free in 1913, economic disaster had not descended upon us by reason of the fact that the value of the 1913 dollar was as much below 1873 as 1939 was below 1913. Secretary ANDERSON. Yes, sir. Senator KERR. I would not, for the world, minimize what I regard as the importance of maintaining the stability of the value of the dollar. And I want to say, Mr. Chairman, that we could restore the value of the 1939 dollar if the people were of a mind to do so. I think Congress would have to be working for $5,000 a year, would they not? Was that not the salary in 1939 ? Some of you boys were here. Labor would have to be working for 25 cents an hour. The farmer would have to be selling his cotton for 7 or 8 cents a pound. I n other words, the only way that you could restore the value of the dollar to the 1939 level would be to reduce the value of the things you use the dollar to buy to their 1939 level; would it not, Mr. Secretary ? Secretary ANDERSON. There always has to be a relationship between the volume of money and the volume of goods. Senator KERR. NO ; I am talking about the value now. Secretary ANDERSON. Yes, Senator KERR. The only way that you could restore the value of the 1939 dollar would be to restore the price level of things for which the dollar was used to purchase to the 1939 levels ? Secretary ANDERSON. If you were going to do it just at one swoop, that would be the way you would do it. Senator KERR. Well, if you were going to do it in two swoops, that is the only way you could do it, is it not ? Secretary ANDERSON. Yes, sir. Senator KERR. SO, when we talk about restoring the value of that dollar, I think it is well that we bear in mind the specifications of what we are talking about. Secretary ANDERSON. Yes, sir. 34 DEBT CEILING INCREASE Senator KERR. And I am not now taking the position either for or against, Mr. Chairman. I am just exploring the fundamentals that would be required. Now, Mr. Mayo, you will get us the relative value of the 1873 dollar to the 1958 dollar? Mr. MAYO. Yes, sir. I will get that. (Data referring to the 1873 dollar are shown on the tables in response to the requests of Senator Kerr and Senator Frear.) The CHAIRMAN. Will the Senator yield ? Senator KERR. Yes. The CHAIRMAN. 1 would like Mr. Mayo's table to show whether or not, in the history of this country, we lost 48 percent of the purchasing power of a dollar in 12 years; whether this ever occurred in the history of this country before except in the period from 1940 to 1952. Mr. MAYO. All right, sir. (The material referred to is as follows:) T h e table in response to t h e request of Senator F r e a r indicates a decline in the purchasing power of t h e dollar from 1913 to 1920 of slightly more t h a n half. I n other words, t h e 1920 dollar w a s only worth 49.4 cents in comparison with the 1913 dollar. T h e year 1920, however, represented a temporary peak in t h e price level a n d throughout t h e remainder of the twenties t h e dollar w a s w o r t h approximately 57 cents in reference to its 1913 value. The CHAIRMAN. D O you have more questions ? Senator KERR. Yes. I want to get to that question here before we go any further. The CHAIRMAN. I just want to see a complete picture here. I do not know anybody who is advocating going back to the 1939 dollar, but there are many people deeply concerned with the continuing inflation and decrease in the purchasing power of the dollar. Consumer prices, purchasing power of the Consumer prices Calendar years 193919401941. Purchasing power of dollar i ', and selected factors affecting prices, Money supply Factors affecting prices Price index (1947-49 =100) Percent change In cents Change 59.4 59.9 62.9 100.0 99.2 94.4 -0.8 -4.8 illions $36.2 42.3 48.6 Billions +0.8 +5.0 Change +6.1 +6.3 +10.8 85.2 -9.2 62.9 +14.3 19431944. 74.0 75.2 +6.2 +1.6 80.3 79.0 -4.9 -1.3 1945. 76.9 +2.3 77.2 -1.8 79.6 90.4 102. 3 +16.8 +10.8 +11.9 1946. 83.4 +8. 5 71.2 -6. 0 110.0 +7.7 1947. 95.5 +14.5 62.2 -9.0 113.6 +3.6 1948- 102.8 +7.6 57.8 -4.4 111.6 -2.0 1949. 101.8 -1.0 58.3 +.5 111.2 -•4 1950- 102.8 +1.0 57.8 -.5 117.7 +6.5 1951. 1952. 111.0 113.5 +8.0 +2.3 53.5 52.3 -4.3 -1.2 124.5 129.0 +6.9 +4.5 1953. 1954. 1955. 114.4 114.8 114. 5 +•8 +.3 -.3 +1.5 51.9 51.7 51.9 -.4 -.2 130.5 134.4 138.2 139.7 +1.5 +3.9 +3.8 +1.5 120.2 +3.4 1942. +.2 1956. 1957. J As measured by BLS consumer price index, assuming purchasing power at 100 cents In 1939. 2 Fiscal year ending June 30 of year shown, a Currency outside of banks and demand deposits adjusted, end of December. 1939-57 3 138.2 Defense program initiated. Heavy industry started sharp rise. General inflation began, accompanying rising deficit and industrial boom. All-out war effort greatly increased deficit. Price controls, rationing and other restrictions initiated, but only after sharp price rise. War production at peak. Money supply rising sharply but inflation held down by wartime restrictions, savings bond sales, reduction in private debt. Index appeared to show inflation still under control as war ended, but inflationary pressures evidenced by increasing black markets. Controls became virtually ineffective after June 1946, and prices began steep rise. Demand increased by wartime shortages. Continued steep rise due to delayed effect of wartime deficits and goods shortages, combined with great wartime increase in money supply. Prices reached peak at midyear. Later decline reflected downturn in business, substantial budget surplus, and leveling out in money supply. Price decline, notably for farm products, reflected business recession and sharp expansion in farm output, with continued leveling out in money supply. Korean invasion brought speculative buying boom. Bank credit sharply expanded, aided by market sales of Treasury bonds to Federal Reserve at supported prices. Price rise, particularly in 1951, due to speculative boom, a marked increase in bank credit, and a sharp rise in labor costs accompanying the war program. (Moderating of inflationary pressures reflected progress in controlling Government expenditures and reducing the deficit, effective credit control under free Federal Reserve action, and effects of the 1954 business recession, in spite of an increase in the money supply. The moderate advance in prices, despite restrictive monetary policies, reflected a widespread demand for bank credit and investment funds, a rise in labor costs, continued upward adjustment in slowmoving prices, and programs to improve prices of farm products. The price advance slackened after midyear, reflecting less active demand, and increased supplies of various products. { NOTE.—Most stringent price controls were in effect from 1942 through June 1946, with more limited controls in effect both before and after this period and during the height of the Korean conflict in 1951 and 1952. Source: Department of Labor, Treasury Department, and Federal Reserve Board. 36 DEBT CEILING INCREASE Senator MALONE. Mr. Chairman, I would like to see the new Senator from West Virginia sworn in. I t is about 12 o'clock, and some of us would like to ask some questions of the witness. I wonder if we could come back after, say, 2 o'clock ? The CHAIRMAN. Some Senate Finance Committee bills are going* to be taken up today. Mrs. Springer, could you arrange that for 2 o'clock and let us meet this afternoon? I would like the members of this committee to be on the floor at 2 o'clock. If we have an afternoon session, we might meet here at 3. Is that satisfactory ? Secretary ANDERSON. Yes, sir. Senator KERR. Well, Mr. Secretary, I want to thank you, sir, for your frank and able answers to the questions, and I want to say to you that I think your request for an increase in the debt limit is reasonable, and if I shared the chairman's optimism as to what the revenues were going to be next year and the expenditures were not going to be The CHAIRMAN. Wait one minute. The chairman has not indicated any optimism. My questions to the Secretary did not indicate any optimism. I t was the Secretary who indicated optimism. Senator KERR. I believe I have in a table here before me, MrChairman The CHAIRMAN. The Senator from Oklahoma should understand those figures were based on figures furnished by the Secretary of the Treasury. Senator KERR. Well, now, in making your proposal you accepted them. The CHAIRMAN. I accept them. I accept them, and I show by these figures that they have got a comfortable balance all the way through on their own figures. Senator KERR. I think in doing so you have exercised an undue optimism, because I do not think the figures are realistic. The CHAIRMAN. I never said the figures were my estimates. Senator KERR. I did not say that you did. The CHAIRMAN. Well, you said I was optimistic in my figures. There are no figures I could take except those that were presented by the Treasury Department, of course. Senator KERR. YOU see, the Senator from Oklahoma has not been limited in the figures. The CHAIRMAN. The Senator from Oklahoma is never limited. Senator KERR. H e has reached some conclusions based upon what he thinks are going to be the results. The CHAIRMAN. Entirely satisfactory. Senator WILLIAMS. I suggest we have incorporated in the record the Kerr estimate of the r e v ^ u e for next year. Senator KERR. The Kerr estimate is in the record. I estimated we would have nearer $1 billion deficit than the one the administration is estimating. And I am estimating you will have a $2 billion deficit next year, instead of a $500 million surplus in fiscal year 1959. And I believe we will have to raise this debt limit to $280 billion and come back next year and have an emergency before us. And if we are in that situation, I think it will result in higher interest rates, both in DEBT CEILilNG INCREASE 37 the Treasury and to private borrowers, and I think you will be in the situation where the Budget Bureau will be running your business instead of the Congress, just like it has been for the last 18 months. The CHAIRMAN. Senator Williams. Senator WILLIAMS. Are you going to proceed a while, Mr. Chairman ? The CHAIRMAN. We might as well proceed. Senator BENNETT. Mr. Chairman, before the Senator begins, I think the question has been raised. Theoretically, the Eepublican members of the committee should be there to greet the new Senator who will be sworn in, and I assume as soon as the preliminaries are over The CHAIRMAN. Gentlemen, that is right. Senator BENNETT. I wonder if we had not better adjourn now until 3 o'clock? The CHAIRMAN. We will adjourn now until 3 o'clock. (Whereupon, at 12:05 p. m. the committee recessed, to reconvene at 3 p. m., the same day.) AFTERNOON SESSION' Present: Senators Byrd (chairman), Frear, Long, Anderson, Douglas, Williams, Flanders, Malone, Carlson, and Bennett. - The CHAIRMAN. We will come to order. Senator Anderson ? Senator ANDERSON. Mr. Secretary, I repeated to your predecessor a remark made by a famous Texan who lived down in Houston, named Jesse Jones, that we would never be able to pay off the national debt. We could only water our currency and gradually get rid of it that way and we would have less relative value. Someone figured out that we paid half the national debt already by the reduction in the value of the dollar. Do you think that the starting in again of deficits might start off another little wave of reducing the value of the dollar ? STATEMENT OP HON. ROBERT B. ANDERSON, SECRETARY OF THE TREASURY—Resumed Secretary ANDERSON. Well, I don't think you can overlook the fact that the excessive creation of debt does contribute to a decline in the value of the dollar. Senator ANDERSON. Don't you also think, Mr. Secretary, that a debt limit has been helpful in holding the line against these deficits ? Secretary ANDERSON. I agree with that, sir. Senator ANDERSON. I surely do. I have strongly supported the thing that he chairman did when he stood firm against an increase in the national debt. I do not mean to say that I have prejudged this case or am deciding it now, but the position of the chairman appealed to me very strongly. Out in our part of the country, Mr. Secretary, a cotton farmer took his cotton acreage out from under the soil bank and got a check of $209,000 from the Government for doing it. He turned around and took some new land, put it under cultivation, and planted over twice as much cotton as he had before. 38 DEBT CEILING INCREASE I thought it was very, very, foolish. I won't ask you as a Cabinet officer to comment on whether it was foolish or not, but I think if we had a firm limit on the national debt wTe might eventually get rid of some of the idiotic things we have done under the farm program, this cotton deal being one of them, and that is why I am somewhat interested in it. I am very much interested in what effect this increase in the national debt wrould have on our defense spending. I think it is on rather loose defense spending. This is not the time nor place to decide how loose it has been, but I took out of Business Week for December 21 a page that says: "There is magic in missiles"— and it lists the fact that, as of October 4, taking the values of October 4 of certain stocks, that Aerojet General has gone up 32.5 percent between October 4 and December 16. I do not have to tell you what the general pattern of stocks has been during that period. Secretary ANDERSON. Yes. Senator ANDERSON. I have just had an appraisal made of an insurance company of which I am an officer, and we operated reasonably well as far as operations were concerned, but we lost money on the most conservative investments you could imagine. So, I assume most all stocks have probably moved down during this time. Douglas Aircraft, however, between these dates moved up 21.8 percent ; General Dynamics, 24.6 percent; the Martin Co., 24.1 percent; and North American Aviation, 46.3 percent since October 4. Mr. Secretary, it is my opinion that missiles contracts have been largely responsible for that. Don't you believe that, if we increase this national debt, the missiles contracts may flow like water around Washington for a while ? Secretary ANDERSON. I t would seem to me that the emphasis which is placed on procurement of missiles is going to be governed more by the recommendations which are made to, and the appropriations which are made by, the Congress with reference to the necessity for this kind of a weapon in order to insure protection of the country than by the debt limit. The debt limit relates primarily to the problem that is created after the contracts are made and when payments begin, because we are concerned with the rate at which money flows into the Treasury from our receipts and the rate at which the money flows out, either to pa}7 for progress payments or to pay for the finished articles. Now, there is not any doubt but what the number of contracts which are made now will have an effect on the rate at which this money is expended. But it will be a delayed effect rather than an immediate one. Senator ANDERSON. Mr. Secretary, I am not trying to single out this company, but this is a Douglas Aircraft booklet, Seventeen Years of Missiles Systems, and starting off to show the Marks and then into the Corporals and the Aerobees, and, on very nice paper and very good printing, the Sparrows, the Nike-Ajax, the Honest John, the Genie—formerly known as the Dingdong—the Thor, and Nike-Hercules, the Sparrow I I , and so forth. DEBT CEILING INCREASE 39 These are the things which have shoved up Douglas Aircraft earnings, and there is a tremendous drive on for more and more missiles. I t seems to me that $5 billion more will be an open invitation for this to continue. The Joint Committee on Atomic Energy has been conducting hearings and we have had, I think, every expert that we could lay our hands on come in and talk about large missiles, the extremely longrange missiles, and so forth. We had men from every branch. We had people from the National Committee for Aeronautics and many other groups. Not one of them said that above a certain level you should depend upon anything but nuclear fuel. Yet, within the last few days, and I will try to stay away from classification—and I am sure I will succeed—but within the last few days, a project has been proposed, and, I believe, endorsed, for the construction of a new type of engine that wvill develop several times the power of the Atlas engines, and not a single expert wdio was before the joint committee says it is feasible. Not a single rocket man who has studied this project says it is feasible, but here is a chance for some company to get some more contracts, and, if we increase the debt limit, don't you feel it will create an easier atmosphere in which to get these contracts ? Secretary ANDERSON. Senator Anderson, nobody is more interested than I am, or we in the Treasury in spending our funds wisely. I have said in my statement to the committee—and I would reiterate to you—that if this $5 billion debt-limit extension is given to us, insofar as it is possible, Ave will not relax any efforts to insure the economic and wise expenditure of our funds. What we have here is a problem that has already been created, with a very large amount of money available through appropriations for all kinds of expenditure purposes. This Congress will create some more, in its judgment, whatever you decide is the right amount. But what it finally gets down to in our request is that we believe that, if bills are presented to the Treasury to be paid, we must pay them. This is something that the good faith and credit of the United States requires. We have to make the best judgment we can, not of the rate that we judge people ought to spend their money, but at the rate which they are going to spend their money and in which they wTill be putting the bills up to the window for us to pay. On this kind of a basis, it seems to us that asking for the equivalent of 12 days' expenditures, which is about a $3,500 million operating balance, is a rather prudent, a rather modest request, and that asking for the remaining funds is a matter of taking care of contingencies, providing for the discovery of new techniques, providing for what may happen in our economy, and what may happen as a result of the judgment of the Congress. I do not want to be unreasonable. I do not want to try to make the job of the Treasury easy. I would not purport to come to this committee and say, "Let's just do away with the debt limit." I think it is a useful tool. But it seems to us that what we are saying is, "Give us this much latitude; let us see how well we can handle our bills, how well we can manage the debt," and 18 months from now we will be back, saying either "We do not need the increase" or "We do" b a W upon our capabilities. 40 DEBT CEILING INCREASE I would like to point out, for example, some figures on local Government agencies—and the figures which I have here are taken from the Bureau of the Census and they cover only the beginning and the end of the year balances and there may be wide swings as there are in our case. We have been maintaining seven-tenths of a month's expenditures as an average cash balance. State governments on the average maintain balances of 2.3 times expenditures. That is based on their monthly expenditures. Cities mantain an average ratio of 2.2. If you include in that all school districts or local subdivisions, all local governments as a group maintain about 3.1 times their average normal expenditures. What we are seeking here is just a reasonable amount of latitude to accomplish both our responsibility of paying our bills and in the management of the debt in providing for moneys. Senator ANDERSON. Mr. Secretary, I know what your personal attitude is and what your official attitude would be. You would have no fears of criticism on that score from me and you know it. Secretary ANDERSON. Surely. Senator ANDERSON. But I do maintain that there may be a good influence in not just automatically lifting the debt ceiling, but in possibly looking for places where money might be saved and. I think if the debt ceiling is not raised too suddently you might find some of those places. I n the farm program the conservation reserve in 1956, your State of Texas and my State of New Mexico together got more conservation reserve money than all the rest of the Nation put together. B u t nonetheless, that will not be the situation this year. We only spent about $30 million that year, nationwide, in the conservation part of the soil bank. This year is a recommendation we spend $450 million. Now if you leave the debt ceiling on, the Department of Agriculture might say, "Well, maybe we do not have to spend that $450 million on the conservation reserve. Maybe there is a different type of farm program that might do the job just a little bit on it." That is all I am saying on these missiles. If the experts who testified before the Joint Committee are right, then I know that this proposal to increase the motors in the Atlas missile 3, 4, or 5 times, whatever it may be, I will be careful about that situation, but whatever it is, I know it is folly. I t cannot possibly succeed, and the people who propose it must know it cannot possibly succeed. But the strange fact is that the Atomic Energy Commission supplies the nuclear fuel and there is no private profit motive in that so we get a lot of proposals to build another type of motor when every witness testifies that once you get over the range that the Atlas is designed to cover, you had better go to nuclear fuel. We had a few million dollars, a few paltry million dollars, chopped out of the nuclear fuel project and we will add a hundred times that much in this project alone. I am only saying that I believe if the debt limit is not raised we might be able to find some spots that would trim some of this money on it. Here is a market letter dated January 24 which talks about thiokol and its solid fuel possibilities, and it says that in statistical terms the story goes like this: DEBT CEILING INCREASE 41 "Sales $1.1 million in 1948; $28 million in 1957. Earnings $52,000 in 1948; $1.4 million in 1957." This indicates why we realize that they are interested in these solid fuels. I don't know what the military will say about their problems. But you get interesting correspondence. I have been sending some things out to nuclear scientists and asking for their comments and I got one back the other day from a man who pointed out that Northrop had a plane plant at Anaheim, Calif., I do not know this to be true— 1 have not been to Anaheim in a long time—it is brandnew, completely equipped. The service that was going to use it decided not to use it. Firestone Tire & Rubber Co. missiles section wanted to buy it or lease it but they were dealing with the wrong branch of the military services and they could not have it so they had to go elsewhere and finally all the equipmnet stood idle for a full year and then was sold to a private company. But the Northrop Co. asked for—that had this fuel, and got money to build a whole new plant at Hawthorne and an office plant in Beverly Hills. I n private business you would have recommended that they take a look at the plant again and if you have a debt limit that holds them down you are going to say to these people "Find out where your dollars are going." Secretary ANDERSON. Senator, if I may, whatever the debt limit may be, I would certainly be one of those who subscribes to the belief that we ought to examine into each of our expenditures to be sure that they are fruitful and that they produce what we really expected from them. Senator ANDERSON. I know that you would, because I have watched your services when you were watching them. You and I are familiar with the Navaho project. Secretary ANDERSON. Yes, sir. Senator ANDERSON. When the Navaho project was abandoned at the cost of—well the official figure is $725 million, I think it was over a billion dollars, but anyhow $700 million was thrown away on the Navaho. They did not use the plant out there, they turned around and told General Motors to build a new plant costing $55 million up in Wisconsin and moved people up there from the California situation. I am only trying to say to you, Mr. Secretary, that I constantly feel if we put some sort of limit on the debt ceiling that you could say, "Well, we cannot afford that sort of thing." I n the discussions in the last few days someone told me that there was a proposal to put a missile weighing 300 pounds on the moon, and that somebody is seeking a contract to do it. Yet, in an independent study, made many years ago, a study was paid for to put a 300-pound missile on the moon, worked out all the details, that has been filed, and a new plan is now going to be developed to cover the same sort of ground. I pointed out to people in the joint committee that there had been a project world series which proposed to put a 2,200-pound missile into the sky. Actually, it was 1,180-pound scientific weight, exactly what the Russian missile, the second one, weighed. This study was made in 1956, in March. I t was called "Studies in ballistic test vehicles and analyses of problems associated with the advanced reconnaissance satellite." 42 DEBT CEILING INCREASE Nobody in the Department can find the study. General Betts, who was before our joint committee, is Mr. Holaday's assistant. He had never heard of it. I mentioned it to the Secretary of Defense; he had not heard of it. I understand that; he could not possibly be familiar with all the past history. But the studies are made and put away and then a new firm is given a million dollar or $5 million contract to make the study over again. I am just hopeful the debt limit will keep that sort of thing from taking place. I don't say that it will. I just want to go to missiles together with you again and then stop. Here is the Newsweek magazine for, I guess, this last week. I t has a full-page ad about a missile that cannot miss, the Talos missile, a Navy missile. I t has a full-page ad about the Sidewinder, a Navy missile, a big story about a Navy missile in it. These, I presume, are public relations jobs that the Navy has worked up but it mentions Sidewinder. Sidewinder is a very interesting missile but it is an air-to-air antiaircraft missile and we have five of them now coming along with this. We have certainly a very good one in the Genie, the MB one, an excellent missile. If you stop and ask a military man what Sidewinder will do that Genie won't you have trouble getting an answer. But in the Falcon missile which is air-to-air, an antiaircraft missile, I visited the White Sands Proving Grounds and found that there were 250 people working on the design of them. I t shocked me to think that many were working on it. When I checked the payroll I found that 2,500 people were working for Hughes out in Beverly Hills on it and you ought to look to see what the product has been of those several hundred millions of dollars spent on the Falcon missile which now is not a very good missile. I just say to you, Mr. Secretary, for what it is worth that I believe if we kept the debt limit pretty tight this sort of expenditure could not take place. The Honest John missile was a pretty good missile. We finished it and built the Little John, which has somewhat slighter weight and little less mileage and then standing right up beside it is the Lacrosse. While the missiles are different, you find out what the mission of the missile is, and there is not much difference. A newspaper the other day carried a headline "Navy Polaris soars in test firing." Mr. Secretary, you and I know that the Navy Polaris did not soar, did it? I t not only did not soar, but it cannot soar. I t does not exist and it won't soar for at least 2 years. This is a press agent job for the sake of what—to keep the missiles program rolling, and I am just afraid that we are going to keep on getting these jobs foisted on us as long as there is money to be had out of the public till and if we chopped it off it might not happen. If you read the story, it is a cleverly worded story by somebody; it says that the components soared. Well, a component could be a cotter pin, a bolt, a nut, anything else could be a component. [Laughter.] DEBT CEILING INCREASE 43 But the Polaris, as you well must know, because you were connected with defense, even with the speedup is not scheduled for a long time to come. Yet there was a full page ad of it in the magazines just a short time ago pushed on them by the public relations departments of our Government, and I am just merely saying if we might hold this down a little bit, we might not have to increase to much and we might save some of the money to go on. We have several different kinds of missiles, and I do not see any end, if we just turn them loose. We made a decision between Jupiter and Thor, then had to back up, started both going again. Now somebody says that Polaris will supplant them both. We had Atlas decided upon, then they decided to go with Titan also because Atlas might fail, and there just is not enough money in the country to keep going with all these programs. AVe have got millions and millions of dollars for missiles this year but when you have got a list, these are not secret, this was published in a magazine, but if you look at the manufacturers you get a clue as to wdiy Honest John had to be replaced by Little John, because Douglas and Hercules Powder had Honest John, and Emerson Electric got Little John. And the one that is just like them, Lacross, it got over to Martin, Thiokol, and Federal Manufacturing. Everybody has to have a little piece of the show. I went into a barbershop the other day and the barber said "We certainly are busy—the missiles men are in town/' [Laughter.] I am just trying to say that some of us who believe that may be one way of getting the missiles men out of town again would be to hold the debt limit where it is. Secretary ANDERSON. Senator, I would not try to justify all of the separate programs in the missile or any other field with which I am not fully familiar. I would say, however, sir, that while I believe very strongly in the debt limit as an instrument of restraint, as an instrument of making us take a second look, of evaluating what we are spending our money for, it seems to me that programs of this sort will not quickly be revised and even if they are revised there will be costs incurred in the revision and in the closing of them, and that our efforts here are based upon just the realization that experience has taught us that we are going to have about this level of expenditures under the programs as they now exist. That we do face in a country as big as ourselves problems which no one can foresee, and that we do need to have these reasonable balances. I would not ask that the balances be so great as to encourage people to believe that there was any amount of money available and that the need for economy had ceased. What we try to do here is to say 12 days is a modest amount, it is a modest balance, and that the balance which we are asking for flexibility in debt management is a modest balance, a prudent one, and that the restraining influence of the debt limit still ought to weigh very heavily upon us and as far as I am concerned I am sure it will. Senator ANDERSON. A S I say, I recognize you need to have money to pay your bills, any responsible business has to have it. 23 297—58 4 44 DEBT CEILING INCREASE Secretary ANDERSON. Yes, sir. Senator ANDERSON. And I do think there is a restraining influence in the debt limit. There are many of us who think the missiles program is going to get completely out of hand and you will never be able to get close to a balanced budget if we do not stop it before it gets out of hand. When the able chairman of this committee and I sat in a briefing at the White House last December, I did not, I thought, get—it did not seem to me there were very good answers to the question of why we had to have several types of the same missile but just as soon as the Army got one, the Air Force and the Navy had to have one, and constantly the same thing takes place. I just do not believe we can afford all these things and we could cut them out as I think we ought to cut the many hundreds of million dollars out of the farm program, then we might get our fairly satisfactory balance in the future. Senator WILLIAMS. Will the Senator yield for a question? As I understand it you are for an advanced missile program, but as I understand it you do not want the debt ceiling to reach the moon ahead of the satellite. Senator ANDERSON. I think the Senator from Delaware has it about right. I think if we would sit down and take a look at the missiles we would realize the problem that faced us in the constant development of these fancy missiles. I went to a briefing at the Army's area in the White Sands Proving Grounds. White Sands Proving Grounds is part of a proving ground that is used by the Army, the Navy, and the Air Force. The Army has its installation at White Sands, and the Air Force has its installation at Holloman Airbase but they are a very few miles apart, air distance, and they are all using the same base steadily. I had just taken a very careful look at what I used to be the Ding Dong which became the Genie which now becomes the MB-1 and it is a very, very fine air-to-air missile. I t is an exceptionally good missile and everything that I think the Air Service could wTant, and I asked the briefer, the man who was in charge of the briefing to tell me what Army missile was equivalent to the Genie and he did not know what the Genie was. I said "Well, then, tell me what the equivalent to the M B - 1 is." He did not know what the MB-1 was. He is almost 20 miles away from the base where it is fired steadily, but he had not heard of it. He is in another branch of the service. There was a three-star general sitting beside me who came out from Washington to see the briefing went on all right. He had never heard of either one of them and, if we knew what the other branch of the service had, we might not make the requirement for a brandnew missile, just precisely the same task over and over again. I honestly believe we can squeeze an awful lot of money out of the missiles programs and if we did we might be able to do what the chairman persuaded the Government to do before; namely, live within that debt limit. Thank you, Mr. Chairman. I t is probably extraneous, but T cannot help but feel we can, possibly, save money. DEBT CEIIJESBG INCREASE 45 The CHAIRMAN. Thank you Senator. Senator WILLIAMS. Mr. Anderson, first, I want to say I realize your problem and am willing to go along with whatever increase in the debt ceiling may seem to be justified. But, in connection with arriving at that decision, I am wondering did the debt ceiling last— the fact that we let this temporary increase in debt ceiling of $3 billion expire June 30, you remember; did the expiration of that temporary debt ceiling hinder Government expenditures during the past 6 months to such an extent that our defense preparedness lagged more than would have been the case had you had a greater leeway ? Do you think there was any cutback in such expenditures, based upon the fact that you did not have adequate leeway ? Secretary ANDERSON. Senator Williams, I would not be able to answer your question in detail. I would simply say to you that from time to time I have felt it incumbent upon me to call the attention, not only of the Department of Defense but of all the other departments of Government, that we wTere very close to the debt ceiling, and that, while we all realize that we must perform those functions which are essential to this country, we ought to perform them in the consciousness that we faced 1 or 2 alternatives, either that our expenditure programs not move forward so rapidly as to exhaust our balances, or we would have to face the problem of recalling the Congress to ask that the debt limit be increased. Senator WILLIAMS. D O you think there was any cutback as a result of that feeling ? Secretary ANDERSON. Yes. I think there was some. I think there was some increased requirements for the investment of private capital on progress-payment contracts. And I think Senator WILLIAMS. D O you think the missile program was cut back as a result of that situation ? Secretary ANDERSON. I have no reason to say that I think the missile program was cut back; no, sir. Senator WILLIAMS. Thank you. The CHAIRMAN. I would like to say, in that connection, the White House admitted that the ceiling had nothing whatever to do with it. Secretary ANDERSON. Yes. The CHAIRMAN. With the situation regarding missiles. Secretary ANDERSON. Yes. Senator WILLIAMS. I n order that we may find out about this, what have been the expenditures during this current fiscal year up to date in the military appropriations, military expenditures, and how do they compare with the expenditures for the preceding year for the same period ? Secretary ANDERSON. YOU are talking about cash expenditures ? Senator WILLIAMS. I am talking about cash expenditures; yes, sir. Secretary ANDERSON. Let me get the Treasury report. Senator WILLIAMS. A S of the most recent date that you have, and what date is that? Secretary ANDERSON. This is from July through December 31, 1957. F o r total military functions, July to December 1957, the expenditures were $19,359 million. Senator WILLIAMS. That is from July 1 until December 31 ? 46 DEBT CEILING INCREASE Secretary ANDERSON. Yes, sir. Senator WILLIAMS. All right. Secretary ANDERSON. And the corresponding period for the fiscal year 1957, $18,375 million. Senator WILLIAMS. May I have those figures again? Secretary ANDERSON. F o r the fiscal year 1958 to date, which would be the current fiscal year. Senator WILLIAMS. Yes. Secretary ANDERSON. $19,358 million. Senator WILLIAMS. Yes. Secretary ANDERSON. And for the corresponding period in fiscal year 1957, $18,375 million. Senator WILLIAMS. I n other words, you spent $1 million more in the last 6 months of 1957 than you spent in the last 6 months of 1956 in the Military Establishment ? Secretary ANDERSON. Approximately $1 billion; yes, sir. Senator WILLIAMS. And you have spent more than if you had it? Secretary ANDERSON. I do not know how much of an increase there wrould have been. Senator WILLIAMS. If we act on the assumption that they held back, then the other line of reasoning is that you would have increased it over and above that extra billion ; is that right ? Secretary ANDERSON. Well, you must remember that I would not be able to measure the total effect which the debt ceiling had in restraining those expenditures. Now, I will say this to you, that, shortly after coming into this Office, and shortly after Mr. McElroy assumed his responsibilities, there was some additional expenditure planned for the Department of Defense for the remainder of this fiscal year of about $868 million. Senator WILLIAMS. That is true. But they will develop mostly in the next 6 months, will they not? Secretary ANDERSON. For the most part. Senator WILLIAMS. For the most part ? Secretary ANDERSON. Yes, sir. Senator WILLIAMS. But for the last 6 months of last year were about a billion higher than the preceding year ? Secretary ANDERSON. A t that rate; yes, sir. Senator WILLIAMS. What is your cash on hand as of today, sir? Secretary ANDERSON. I t is about $2 billion. We were just Senator WILLIAM. Here is the last report, January 16 report, which was about $2.6 billion, if I remember correctly. Secretary ANDERSON. On January 22, Federal Reserve funds were $454 million, and tax and loans around $1,345 million would be, the sum of those 2, about $1.8 billion. Senator WILLIAMS. May I have that report I just gave you there? Isn't this your net balance of all your accumulated right here, which would be $2.6 billion? Secretary ANDERSON. The Treasurer's balance figure which you are looking at w^as $2.9 billion on January 22, Mr. Heffelfinger tells me, including uncollected balances Senator WILLLVMS. What was last, year's figure? DEBT CEILING INCREASE 47 Secretary ANDERSON. The actual figure on the left is Federal Reserve banks Senator WILLIAMS. H O W does that compare with the last year ? Secretary ANDERSON. Of the same date ? Senator WILLIAMS. The preceding year. Yes. Secretary ANDERSON. January 15, 1957, approximately $1.3 billion. Senator WILLIAMS. And it is how much this year ? Secretary ANDERSON. Approximately $2 billion. Senator WILLIAMS. Approximately $2 billion. I n other words you have $700 million more this year in cash than of a comparable date last year? Secretary ANDERSON. That is correct, sir. The debt limit, of course, as you knowT, was $3 billion higher then. Senator WILLIAMS. Well, the fact you spent about a billion dollars more in the military than you spent in the comparable 6 months, the preceding 6 months, and your cash has increased by $700 million and you have leeway in your national debt, I think, of about $800 million, plus the drawing fund that you would have if you would sell some more F N M A mortgages, I think there has been adequate money to finance the payments of the debt during the past 6 months. Secretary ANDERSON. Yes, we have made the payments. Senator WILLIAMS. YOU have been able to make your payments and have not been squeezed necessarily ? Secretary ANDERSON. I would not say we have not been squeezed; we have been very close to the limit—within a few hundred million dollars of the limit. Senator WILLIAMS. D O you think a greater leeway would have been easier to have floated long-term debt, given you more Secretary ANDERSON. Yes, I think it would, sir. Senator WILLIAMS. YOU think it would. How much long-term debt was floated during 1957? Secretary ANDERSON. Well, we had in the latter part of 1957 two long issues. Two issues of a half-billion each Senator WILLIAMS. The point I am making is, those were both longterm issues and floated during the last half of 1957; weren't they ? Secretary ANDERSON. That is correct. They wrere in small amounts. Senator WILLIAMS. And the debt ceiling expired on June 30 ? Secretary ANDERSON. That is correct. Senator WILLIAMS. I n the preceding year in which you had the higher debt ceiling, the preceding fiscal year, were there any long-term bond issues floated? Secretary ANDERSON. I do not think so. Senator WILLIAMS. Were there any 2 years prior to that? 1954-55 were the last ones prior to this year ? Secretary ANDERSON. July of 1955. Senator WILLIAMS. S O I just wondered if really this debt ceiling had proved to be the handicap, because the only long-term issues that had been floated in the last 4 years were done after this lapsed in the last half of last year? Secretary ANDERSON. Senator Williams, the point here is that market opportunities come from time to time in which you feel, first of 48 DEBT CEILING INCREASE all, that the rate of interest at which money is procurable is reasonable, and, secondly, that there is money available for that kind of investments, where you could have some long-term investments. Now then, what we are saying is that when those opportunities do present themselves, we want to be in a position and should be in a position, in our judgment, to take advantage of extending as much of the debt as we can. Senator WILLIAMS. I think that is correct. Secretary ANDERSON. Yes. Now during the periods in which there is a great demand for investment funds from all kinds of industries, where interest rates are rising and where the availability of money is less, those opportunities simply do not present themselves. Senator WILLIAMS. W e were speaking a moment ago that some of the spending had been curtailed as a result of the ceiling ? Secretary ANDERSON. Yes. Senator WILLIAMS. $275 billion ceiling. Do you know of any particular departments in which—or any specific projects which were curtailed ? Secretary ANDERSON. The only one that comes to mind immediately is the requirement by the Department of Defense of their contractors to invest, as I recall, about 5 percent more of their funds in the development of their materials which they were selling to the Government. I n other words, by reducing the amount of the progress payments which were being made. Senator WILLIAMS. I S that order still in effect ? Secretary ANDERSON. S O far as I know it is. Senator WILLIAMS. If the debt ceiling were raised would it be reversed ? Secretary ANDERSON. NO, sir. Senator WILLIAMS. I t would still remain in effect ? Secretary ANDERSON. I t would remain in effect. This, as .1 understand it, was a decision of a permanent policy by the Department of Defense. Senator WILLIAMS. That was my understanding and it had no connection with the debt. Secretary ANDERSON. I t s timing may have had a connection with the debt ceiling. Senator LONG. Might I ask that question be answered again because I am trying to follow the witness and I think it is a very important statement to the committee. Secretary ANDERSON. Senator Long, if I get what you want answered again, it was the question that the Department of Defense has contracts in which it makes progress payments as work is performed and it was a decision of the Department of Defense that they would decrease the amount of progress payments that were made from time to time by something like 5 percent. As the progress payments are decreased the manufacturer is then required to invest more of his own funds in the development of the materials up to the point that it is a finished airplane or a finished missile or whatever it is, and is delivered to the Government, at which time you pay it all off. DEBT CELLING INCREASE 49 Senator LONG. S O he gets just as much money but he must advance some of his own money, at least a higher percentage of his own money, in fulfilling his contract ? Secretary ANDERSON. That is correct. Now, then, as Senator Williams asked, was this something that would be reversed if the debt ceiling were increased, and I said I do not think so. I think it wTas there as a permanent policy. NowT, there is this side effect that the manufacturer, if he is on a cost-plus basis, will, of course, go into the market to get whatever additional funds he may need for his own investment, and then the cost of that additional money becomes a part of the cost of the finished product which, of course, is paid for at the time you get the final product. Senator WILLIAMS. But the point I was making was that it was my understanding that was a policy and one which would be continued regardless ? Secretary ANDERSON. Yes, that is correct. Senator WILLIAMS. And one which was inaugurated regardless of the situation ? Secretary ANDERSON. Yes. The CHAIRMAN. YOU feel they were getting a larger percentage than they should be getting, I assume. Secretary ANDERSON. I t was the decision of the Department of Defense. The CHAIRMAN. Based not upon the debt limit but because they thought that manufacturers were getting a larger percentage of their costs ? Secretary ANDERSON. Yes. The CHAIRMAN. Before the article or whatever it was, was finished, is that correct ? Secretary ANDERSON. That is correct. The CHAIRMAN. And that is the reason they changed the policy ? Secretary ANDERSON. I would think that the timing of the change was probably influenced by the tightness of our situation but that is correct. Senator WILLIAMS. The question was raised by the chairman this morning as to the connection between deficit spending and inflation, and I think it was brought out that the dollar since 1913 had dropped, lost two-thirds of its value, was that correct ? Secretary ANDERSON. T h a t is correct. Senator WILLIAMS. And that one-third of the value was lost between the period of 1940 and 1946. Is that correct ? Secretary ANDERSON. One-third of it ? Senator BENNETT. From-^one-third of the value lost after 1913 was lost between 1946 and 1956, not 1940 and 1946. Senator WILLIAMS. Yes, 1940 and 1956. Senator BENNETT. Eight. Senator WILLIAMS. NOW, my question was this, when was the other one-third lost ? Secretary ANDERSON. Well, this is the schedule right here. 50 DEBT CEILING INCREASE Senator BENNETT. YOU cannot answer that question, John, because they kept shifting bases this morning. Senator WILLIAMS. That is the reason I want to get on base, I got caught between, and if I read this chart on page 418 of this hearing right, and all of our talk this morning was centered around the 1939 dollar, was it not ? And you started back in 1918, the 1939 dollar, assuming that to be a hundred, was valued at 140 percent, is that correct? Secretary ANDERSON. That would be correct, yes, sir. Senator WILLIAMS. A dollar forty, and we lost—what was that worth in 1920, that dollar ? Secretary ANDERSON. I do not have the figure for 1920. Senator WILLIAMS. I t is on page 418, Mr. Anderson. Senator BENNETT. I t was worth seventy cents. Secretary ANDERSON. Seventy cents, 69.3. Senator WILLIAMS. I n other words, we lost—the value of the dollar lost two-thirds of its value since 1913. One-third of it was lost in the World W a r I period or that 8-year period and the other one-third was lost between the period of 1940 and up to the present time, is that right? Secretary ANDERSON. Yes. Senator WILLIAMS. And between those periods it was a relatively stable dollar. I n fact I think the dollar actually increased in value a little bit. Secretary ANDERSON. During the period of the twenties it did increase. Senator WILLIAMS. During the period of the twenties it increased in value ? Secretary ANDERSON. Yes, sir. Senator WILLIAMS. And your drastic drop was in the two areas about half of it taking place from 1913 to 1920 ? Secretary ANDERSON. That is correct. Senator WILLIAMS. And the other half of the drop taking place beginning with 1940 and ending up to the present time, but the bulk of it ending in 1952 and 1953, isn't that correct ? Secretary ANDERSON. That is correct. Senator WILLIAMS. I think this chart, we do not want to duplicate this, Mr. Chairman, if this was not the one incorporated in the record, I would like to see this same chart which appears on page 418 of the monetary hearings inserted in the record of this hearing. Mr. MAYO. That particular chart has not yet been introduced in this record. The CHAIRMAN. Without objection, it will be placed in the record at this point. DEBT CEILING 51 INCREASE (The document is as follows:) Consumer prices Consumer prices (1947-49 = 100) C a l e n d a r y e a r av> erages: 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 42.3 42.9 43.4 46.6 54.8 64.3 74.0 85.7 76.4 71.6 72.9 73.1 75.0 75.6 74.2 73.3 73.3 71.4 65.0 58.4 55. 3 57.2 58.7 59.3 and the purchasing poioer of the dollar, 1918 to Purchasing power of the dollar | 1939=$1 1934 = $1 $1. 404 1. 385 1.368 1.274 1.083 .924 .803 .693 .778 .830 .815 .812 .792 .786 .801 .810 .810 .832 .914 1.017 1.074 1.038 1.012 1.002 $1,351 1.333 1.318 1.227 1.044 .890 .773 .668 .749 .799 .785 .782 .763 .756 .771 .781 .781 .801 .880 .979 1.034 1.000 .975 .964 Consumer prices (1947-49= 100) date Purchasing power of t h e dollar 1939 = $1 Calendar year av erages—Con. 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 Months: M a y 1956 M a y 1957 1934 = $1 61.4 60.3 59.4 59.9 62.9 69.7 74.0 75.2 76.9 83.4 95.5 102.8 101.8 102.8 111.0 113.5 114.4 114.8 114.5 116.2 $0. 967 .985 1.000 .992 .944 .852 .803 .790 .772 .712 .622 .578 .583 .578 .535 .523 .519 .517 .519 .511 $0. 932 .940 .963 .955 .909 .820 .773 .760 .744 .686 .599 . 556 . 562 . 556 .515 .504 .500 .498 .500 .492 115.4 119.6 .515 .497 .496 .478 Source: D e p a r t m e n t of L a b o r a n d d e r i v e d c o m p u t a t i o n s . Senator W I L L I A M S . Because it does give a complete breakdown from the year 1913 all the way through, and I am like the chairman, I cannot help but feel that there is a decided connection between deficit spending and the value of the currency, and in speaking of the value of the dollar, the question was raised about it being impracticable to roll it back to the 1939 level. Have you heard any suggestion of anyone connected with the administration or anyone connected wTith the Government of trying to roll it back ? Secretary ANDERSON. NO, sir. Senator W I L L I A M S . Isn't the concern to hold it stable ? Secretary ANDERSON. I think the concern is to be sure it does not depreciate further. Senator W I L L I A M S . Just for the record, do you in studying the historical record of other countries in dealing with inflation, do you know of any country in which there has been serious or catastrophic inflation developed that such a catastrophe was not first preceded by a series of unbalanced budgets ? Secretary ANDERSON. Well, my recollections of the details of the history would be such that I would not want to say this categorically. I am sure that imbalance in payments has been a characteristic of those countries in which there has been great inflation. I t has always has been a contributing factor substantially. Senator W I L L I A M S . And you feel that in order to manage this debt you would need the full 5 billion, do you, Mr. Secretary ? 52 DEBT CEILING INCREASE Secretary ANDERSON. Senator Williams, I honestly do. I have studied the problem as conscientiously as I can from the standpoint of trying to be modest about the increase. As I said to the chairman earlier, certainly we can pay the bills of the Government with something less than this, if the expenditures do not radically exceed those we anticipate and if the revenues are collected at something approximating the rates which we are assuming. I do not want to jeopardize any savings that can be made in this country. I would simply emphasize that we have three considerations : One, the maintenance of reasonable balances to pay our debts. Two, the maintenance of sufficient margins of flexibility that we can take full advantages of all opportunities that come to get the debt in better balance. And, finally, to have a reasonably prudent amount which we can call upon for contingencies. Now the minds of men can differ. This is not an effort to make my job easy, but it is something that we have tried to regard as a modest approach to our problem. Senator WILLIAMS. I might say that I recognize our responsibility to give you the means whereby you could manage the debt and pay the bills, and it is our responsibility here to give consideration to that at the time we authorize those expenditures. Secretary ANDERSON. Surely. Senator WILLIAMS. And not pass it on to you, the responsibility. But how would you feel about using, say we had this 4 or 5 billion dollar debt, using a portion of that leeway to finance a tax reduction ? Secretary ANDERSON. Well Senator WILLIAMS. I n other words, I will put the question this way: Do you, I think there is a question which has been raised as to whether you would favor tax reduction under certain circumstances ? Secretary ANDERSON. Yes. Senator WILLIAMS. Well, suppose we had a circumstance where we were operating at a deficit, which we would be if there was a period of high unemployment. Would you further that and utilize a portion of this national-debt leeway to finance a tax reduction in such a period as that ? Secretary ANDERSON. Senator Williams, the point at which the debt ceiling would be set would not be the determining factor in my own judgment, as to the advisability of tax reductions. As a matter of my own thinking, I believe that we ought, so far as it is possible, to pay for our current expenditures out of current earnings and particularly at a time when the operation of the economy is at relatively high levels, it is undesirable to add to the debt and to the burdens of future generations. I have said, however, that it is conceivable to me that economic circumstances might be such as to warrant the utilization of a reduction in taxes as a fiscal instrument to improve the growth and development of the economy of the country. I do not believe that that time is here now. DEBT CEILING INCREASE 53 I would arrive at that judgment more by the conditions of the economy than I would by the debt limit. Senator WILLIAMS. Should such an event arise wherein you felt that the tax reduction under those circumstances was justified, would your request have to be accompanied with a corresponding increase in the debt to finance that or would you have adequate leeway under this 5 billion to do it, assuming it came this year ? Secretary ANDERSON. Of course that would be a question t h a t would be dependent upon the size of any reduction, but if the expenditures remained relatively high Senator WILLIAMS. YOU could not get much of a tax reduction of less than $2 billion for it to do anybody any good ? Secretary ANDERSON. If the expenditures were going to be high and the revenues were going to be low and you were going to have a tax reduction—and utilize it as a fiscal instrument—then you would have to have more increase in the debt ceiling in order to borrow the money to accomplish it. You would have to tie the two together. Senator WILLIAMS. I n other words, I saw the question raised and the reason I was bringing it up, was I saw the suggestion made that one purpose of getting this $5 billion was to get the necessary leeway for a couple of billion dollars tax reduction if later on it was decided upon. I did not think it wTas true but I wanted to get it on the record. Secretary ANDERSON. • I t has not gone into our thinking, Senator. Senator WILLIAMS. I t was not. If there was such a tax reduction authorized later it would be accompanied by an increase corresponding in the debt ? Secretary ANDERSON. I t would if expenditures remained at a high level. Senator WILLIAMS. And you think this is needed for any program other than that? Secretary ANDERSON. That is our judgment, sir. Senator WILLIAMS, I have no further questions. The CHAIRMAN. Senator Frear ? If you will pardon the Chair for just one moment. I would like Senator Douglas' attention to this because he took a great interest in this—in 1953 at the time of the first request for the increased debt limit, one of the reasons, I think, why the Senate Finance Committee rejected it was the high balances on hand? Secretary ANDERSON. Yes, sir. The CHAIRMAN. And I see that on January 9, 1958 you submitted to me a statement that indicates that at certain periods you expect to have $5 billion and $6 billion on hand which is not drawing interest and deposited in banks. What assurance has the committee got that you will not have over $3 bifcon on hand ? Secretary ANDERSON. These are figures which relate to the middle and the end of each month, and there will, Senator Byrd, be fluctuations between those periods, both up and down. There will be periods in which it will be in excess and there will be periods when it will be lower, and the $3.5 billion is an arbitrary balance. 51 DEBT CEILING INCREASE I would not by any means want to represent The CHAIRMAN. I t may be $6 billion or $7 billion. Secretary ANDERSON. I t could because the shift would be very great. The CHAIRMAN. That is in the banks without any interest paid on it ? Senator Douglas will recall there was a very great debate in the Senate, and that makes the possibility of it that much greater if you get the full amount of the increase that you ask for. Secretary ANDERSON. There are those fluctuations and they come in particularly when there is a heavy taxpaying period, and then the balances decline as you have noted into relatively small figures, even within the 2 weeks period. The CHAIRMAN. Senator Douglas, do you have any questions on this? Senator DOUGLAS. I took the figures of the New York clearing house which are weekly figures on the Government balances. I took them from the New York Times over a period of some years, from 1953 through early 1957 for each of the banks and I put them into the Congressional Record, I believe last year, with the letters A, B, C, et cetera for the banks rather than specifically identifying the banks. I can only say that in some banks the balances never fell below many millions of dollars. Even during the weeks of the greatest withdrawals there would still be a balance in some banks running into the millions of dollars. When I took the lowest figure for each bank, i. e., the lowest figure of bank A, during this period of years, and the lowest figure for all of them in any week during this period of years and totaled them the result was a very large sum of interestfree deposits. I think, I mentioned to you privately when you wrere confirmed last summer, my concern about this matter. We now have some tentative figures for clearinghouses of other cities and this whole question I think is a very serious one. Secretary ANDERSON. Senator Douglas, I do not have your concern about this situation. I n the last few weeks Mr. Baird and I have had 2 or 3 conversations with Mr. Campbell. We have been studying it, and there are these considerations, among others: The balances are spread over about 11,000 banks in the country. They run from periods during which they are relatively high to periods when they are fairly low. I think I said in my testimony to the House Ways and Means Committee that sometime in February we expect all of the balances in the country that are in the hands of the banks, uncalled for, that is uncommitted, to get down possibly as low as $250 million or $275 million. Senator DOUGLAS. YOU mean the total ? Secretary ANDERSON. Yes, sir; the uncalled balances. The CHAIRMAN. That would not be true if you increased the debt limit? Secretary ANDERSON. I beg pardon, sir. The CHAIRMAN. That would not be the case if there were an increase in the debt limit. Secretary ANDERSON. N O , sir; if we had some additional borrowings, it would not. This would be one of these tight periods. DEBT CEILING INCREASE 55 Senator DOUGLAS. I am not maintaining that you should keep the total deposits down to $275 million. Secretary ANDERSON. I know that. Senator DOUGLAS. I agree that would be a dangerous point. But I am merely reenforcing what Senator Byrd pointed out at the time, namely, that you have billions of dollars of deposits in banks, and while it is true that small banks have small amounts, it is also true that big banks have tremendous amounts and this is interest-free money. As practical men we knowT that one of the great abuses in banking is the use of interest from deposits of public funds—of local funds, county funds, and State funds. I believe we have had some experiences in Illinois in this respect and this is a political football. I do not say nationally, but I mean locally. As I understood it the justification that was originally advanced so far as the interest-free deposit of national funds is concerned, was that it would merely offset the unpaid services which banks performed for the Government, and during the period of the war, I quite well grant that they did perform a great many unpaid services in the floating of bonds and so forth and so on. But certainly the volume of these unpaid services has declined as we have moved away from war emergency into a financial situation which has become approximately stabilized. If you go into this matter, as you apparently are doing, I think you will find that there are real opportunities, either of cutting down the total balances or if you insist on depositing them to have some of them, at least, in time deposits on which interest could be collected. Secretary ANDERSON. Senator, there are 2 or 3 other factors that we are weighing. One of them is that most of these deposits simply represent a shift in the deposits from their other customers to the tax and loan accounts. I n other words, in the process of tax collections, in the process of buying securities, there is a shift from a demand deposit of a customer who either pays his tax or who buys a Government security so that it is shifted from the customer's account over to the tax and loan account until it is called for. If you took the same total deposits in banks during those periods, there would not be very much change. They are both on demand, the customer's account is on demand until he buys the security, or until he pays the tax. The money is then shifted by the bank over into the tax and loan accounts which is the same money in the same bank. I t is in a different account now. I t is on demand because it is on our demand. Senator DOUGLAS. Yes; but there is a very large hard core of the deposits which you never demand. I think if you would take the record say of a hundred leading banks in the country—I won't say to take the records of 11,000 banks—but take the records of a hundred leading banks in the country and see what was the lowest weekly deposit for each, and then get the totals. Secretary ANDERSON. I don't think we have it on the full hundred. Senator DOUGLAS. A S I say, I will submit a tear sheet in the record on this material I put in on the New York banks. Weekly statistics on United States deposits in selected New York banks, January 1953 to August 1955 [In thousands] Date 1953 Jan. 7 14 21 28 Feb. 4 11 18 25 Mar. 4 11 18 25 Apr. 1 8 15 22 29 May 6 13 20 27 June 3 10 17 24 July 1 8 15 22 29 Aug. 5 12 19 26 Sept. 2 9 16 23 30 Oct. 7 14 21 28 A B $17,260 14,186 12,384 12,344 12,621 12,881 13,826 13,098 11,038 7,960 7,072 11,260 9,876 7,994 6,010 4,625 3,106 15, 322 15, 439 9,336 6,373 6,649 18. 610 9,418 7,326 8,919 5,853 11,360 40, 049 35, 845 32, 402 28,035 24,763 23, 445 20, 875 16, 208 13,378 12, 065 12,157 10, 268 7,710 6,424 7,377 $29,493 23,891 21, 775 21, 745 23,971 25,328 33, 592 35,113 31, 569 23,762 23,937 32, 788 35,715 30, 271 24,177 18,437 12,458 18,149 17,026 20,078 18, 526 11, 275 15, 832 24, 857 27,122 22, 998 29, 546 83, 654 75, 225 71,109 63,163 61, 554 61,170 56,193 44,485 39, 687 40,126 43,860 40, 638 31,008 25, 651 20, 779 C $149,462 102,605 94,839 94,861 97, 201 97,321 109,788 110,037 100,088 81, 252 108,007 243, 598 220,306 150, 410 104, 271 79,990 59, 283 94, 982 90, 563 80,118 69, 560 60, 795 90. 852 79, 977 134.057 155, 528 110, 753 139, 296 378, 434 342, 872 316, 553 277, 951 261, 248 252, 694 252, 548 228, 800 205, 277 201, 967 336, 274 314, 541 245,181 203, 425 161, 861 D $77, 732 61, 697 53, 588 52, 292 59,198 61, 631 68,952 67,135 59, 562 43,781 47,056 89, 650 96,616 76, 727 49,373 30, 855 20,748 53, 761 49, 392 42,167 36, 381 23,155 14,100 26, 657 50,231 63,912 49,666 48,040 109, 783 98, 942 98, 041 92. 720 98, 048 104, 736 111, 138 102, 645 91, 709 92,112 107,048 105, 624 82, 069 67, 983 68,358 E $112,322 69,924 61,126 59,619 73,121 77,695 97,165 95,443 82, 609 58,113 67,243 139, 206 123, 705 85, 745 56,133 37,641 25, 561 83,335 79, 401 65,338 49, 510 25,179 13,159 24,077 70, 847 99, 763 58,105 79, 450 267, 421 239, 434 229,371 207, 298 206, 560 206, 428 201, 503 185, 336 164, 004 173,162 239, 637 213, 770 159, 787 149, 816 126,377 . F $58,239 47,604 49, 241 53,095 57, 231 60, 223 71,053 73,069 72,574 58,498 53,397 81,981 79,645 65, 569 53,859 51,589 38,138 40,528 34, 405 42, 023 39, 997 33,135 43, 416 33,190 50, 987 62, 871 49, 451 52, 349 128, 578 117, 459 110,037 100, 269 107,028 106, 377 99, 887 82, 646 74, 778 81,341 82, 627 76, 868 59, 774 46, 031 41, 734 G $63,318 36,205 34,485 34,659 36, 678 37,989 45,102 49,635 43, 584 31,101 42, 849 111,981 94,679 64,141 40,008 31,179 21,914 30, 484 24, 315 24,143 25,151 14,311 8,579 15,302 46, 002 68, 854 40, 460 39, 828 126, 972 114. 869 107,376 94,604 92, 537 95, 648 90, 993 76,415 64, 984 86, 930 93,047 82,318 60, 714 52, 967 48, 285 H $16,229 14, 376 13,723 14,116 15,674 16,914 21,615 22,412 20,940 1,649 17,144 22,150 21,395 18, 704 18,250 16,684 11,256 11, 681 10, 014 12, 234 11, 804 8, 047 5, 595 8,352 13,009 13, 525 12,045 13, 206 25, 991 23, 977 22, 833 21, 970 24,155 24, 942 24,019 19, 950 19, 821 21, 067 23,181 24,030 19, 566 16, 084 12,924 I J $39, 341 23,851 20,376 20, 681 26, 648 27,999 32, 293 31,071 26, 599 18, 268 21, 228 47, 772 45,049 31, 292 18, 859 11,454 8,477 25, 992 22, 672 27, 429 26, 651 18, 704 27, 032 20, 819 44, 927 41, 605 23,138 69, 311 214,199 193, 471 179,116 154, 903 137, 490 128, 853 118,167 103, 502 97,121 85,114 83, 767 81,117 59, 702 53, 981 45, 699 $61, 773 45, 512 39,692 38,806 43,455 45, 866 51,309 49,671 43,488 32,061 35,184 65, 506 58,350 42, 307 29,813 21,106 14,309 22.377 19, 691 20, 718 17, 535 10, 576 6, 012 12, 749 29, 962 38, 409 25, 871 39, 558 137, 657 124, 200 117, 213 103,153 96, 965 100, 425 103, 559 88, 737 77, 635 75, 001 74, 689 68, 320 51, 485 37, 736 29, 672 K $149,028 95,849 83,029 83, 562 101,239 109, 775 130,649 130,096 115, 522 84,674 98,719 216,051 205,363 153,982 105,019 71,693 52, 517 107,177 98, 975 107, 477 94, 313 61, 592 64, 602 57,487 115, 736 143, 778 91,993 117, 476 357, 741 327, 733 317, 460 283, 885 281, 882 281, 479 268, 603 235, 711 208, 619 222, 688 253, 937 230,032 204,392 192, 506 162? 657 w o & t—i o o > Nov. 4 10 18 24 2*| Dec. 9 16 23 30 1954 in. 6 13 20 27 Feb. 3 10 17 24 Mar. 3 10 17 24 31 7 Apr. 14 21 28 May 5 12 19 26 2 June 16 23 30 July 7 14 21 28 4 Aug. 11 18 25 Sept. 1 8 1953 15 22 29 6 Oct. 13 20 27 6,771 19, 735 28, 486 25, 694 19, 496 34, 393 54, 750 53, 655 151,439 168, 788 207, 475 195, 267 77, 384 87, 737 103, 270 96, 411 126, 146, 175, 159, 666 610 034 912 40, 603 54, 355 77, 039 79, 380 46, 239 58, 746 74, 850 73, 217 12,609 15,054 21, 218 21, 945 48,138 63,429 81, 330 73,472 31, 45, 64, 60, 716 672 237 700 155, 440 191, 289 244. 679 223, 978 13, 579 8,582 8, 056 8,263 32, 24, 27, 27, 512 478 472 888 145, 541 115, 253 115,650 120, 833 65, 228 48, 988 50, 726 51,610 96, 67, 65, 65, 944 400 784 833 62, 55, 59, 61, 52, 37, 42, 44, 488 555 664 208 16. 051 14,159 16, 242 17, 814 43, 29, 29, 29, 501 888 732 414 37, 650 29,117 31, 344 32,198 144, 057 104, 411 104, 793 107, 070 7,438 4,784 4,642 4, 570 5,184 5,648 6,561 7,364 6,196 4,170 5,430 8,962 10,445 9,903 6,874 5,779 8,941 12, 695 8,112 20,388 28,014 23,637 15, 889 9,469 7,087 9,121 10,277 8,516 6,903 5,588 10, 545 13, 594 14, 084 13,106 11, 260 9,233 24,662 16, 829 16, 865 17,081 18, 628 18,273 23,945 26,878 24,330 17, 218 21, 751 34,110 38, 727 39, 778 28,274 22,850 19,180 14,932 9,416 29,837 41, 385 37,000 28, 931 20,356 23, 643 33,434 35, 721 30,050 24, 776 20,148 29, 650 34,157 37, 627 37, 858 34, 674 29, 905 125,234 96,953 95,798 95,904 103,658 97,176 107,186 112, 382 117,011 93,644 100,678 157, 923 167,856 173,073 119,824 101,841 92,532 94, 780 79,827 128, 502 156, 283 158,625 132,202 106,683 123, 619 196,364 216, 451 170, 060 133, 547 115, 647 166, 454 196,174 197, 377 182,044 168,168 154, 499 50,800 35,086 34,842 34, 748 46,383 46, 596 55,307 57,124 60,457 46,364 54,545 78,193 87,942 91,855 66,481 53,995 76,581 112,394 73,713 92, 754 99,308 89,875 67,215 47,917 51,381 86,029 94, 891 72, 274 54, 477 44, 582 74, 805 86, 731 88, 853 83, 442 76, 815 68,340 63,544 42,656 42,228 41,688 54,134 55,124 62,940 69,023 68,789 49,372 60,423 108,627 114,205 110,382 69,072 51,661 43, 569 52,943 40,384 98,454 128,537 119, 719 88,872 58,805 74,057 137,242 145, 540 99, 550 67,049 51, 914 124, 695 165, 388 167, 660 154, 341 137,208 117, 988 55,947 39,438 44,053 45,680 46,825 44,284 55,311 63,781 63,870 49, a44 56,419 76,455 74,962 78,972 65,113 56, 592 51,111 41,784 25, 571 52,474 72,633 71,509 56,467 42,405 47,447 71,699 75, 855 63, 985 52, 346 44, 296 58, 588 68,488 73,269 72, 839 76, 859 70, 740 41,821 29,251 30,042 31,999 32,969 32,030 38,189 44,712 43,214 33,492 36,894 92,040 96,362 86,210 47,068 38,812 35,145 33,091 24,224 42,302 54,892 51,878 39,390 26,163 57,874 90, 924 93, 826 64, 853 48, 358 41, 293 53, 950 59, 949 61, 507 62,160 58, 342 54,173 16,295 11,858 12, 513 13,037 13,121 12,981 16,546 18,320 21,296 17,870 19,243 25,132 24, 952 24,718 19,712 16.503 14,570 16,129 13,153 20,823 23,477 21,140 16,352 13,040 12, 940 17,318 20, 365 19,073 17,222 14, 516 15, 991 15, 368 19, 435 21,082 20, 458 18,124 26,303 16,597 16,363 17,067 22,898 24,377 28, 745 29,979 28,224 19,096 21,183 36,812 35, 974 34,545 21, 586 16,153 42,986 86, 725 58, 731 66,085 69,556 59,840 41,931 26, 720 34,131 47, 831 50, 885 37,022 26, 742 22, 894 47,150 58, 080 56, 478 51, 647 45, 402 38, 477 37,456 27,872 27,915 27, 821 35,035 34, 685 40,645 42,032 38, 506 27,191 32,227 53,399 55,521 50, 985 31,592 24,694 22,732 28,584 20,116 45, 664 58, 827 58,138 45,348 33, 340 32, 949 50,454 54, 998 43, 333 34, 490 28, 274 51, 425 61, 878 64,008 59, 456 55, 982 52, 214 100,899 68, 557 67,442 68,806 88,858 88,226 107,015 112,667 104,876 74, 749 88,199 171,701 187,053 178, 727 108,866 83,886 77.307 85,719 59,377 98,167 175, 581 160, 712 118,863 83,028 111,683 197,077 208, 387 145, 476 100,495 82, 211 167, 507 212, 691 210, 760 193, 582 172,016 147,853 6,900 7,946 7,978 22, 221 30,470 27, 986 24, 807 23, 342 25, 877 26, 729 61, 350 79, 668 70, 731 62,277 128,282 128, 537 132, 760 247, 408 288,163 261, 580 236,888 52, 542 58, 759 58, 816 119, 322 142,039 148, 638 131,237 85, 403 79, 842 78, 474 186, 475 239,115 207, 535 179, 767 56,059 61,161 63, 665 90,239 96, 290 86, 838 77, 618 38, 959 43, 559 44, 705 78, 985 92,144 82, 851 75,193 15,417 17, 691 19,027 26,042 27,957 82, 779 72, 468 28, 572 29, 964 29,405 73, 781 95, 683 72, 413 63, 467 40, 683 40, 806 4.1,103 72,145 83, 847 216, 573 192,697 110,108 110, 906 113, 679 210, 449 248, 021 167, 805 146, 580 See footnotes a t end of table. 245 492 963 596 w o I 3 d > Weekly statistics on United States deposits in selected New York banks, January 1958 to August 1955—Continued 00 [In thousands] Date Nov. 3 9 17 23 Dec. 1 8 15 22 29 1955 Jan. 5 12 19 26 Feb. 2 9 16 23 Mar. 2 9 16 23 30 Apr. 6 13 20 27 May 4 11 18 25 June 1 8 15 22 29 July 6 13 20 27 Aug. 3 10 1 2 D E F A B $21, 822 20, 275 27, 343 29,124 26, 232 21, 673 17, 078 13, 970 11,812 $58,113 55, 444 58, 773 57, 096 52, 768 45, 844 38, 490 36,151 31, 969 $225, 601 212, 470 238, 404 229, 230 214, 208 193, 649 166, 450 146, 209 136,125 $131,311 128, 723 134, 442 126, 883 122, 009 110, 386 94, 881 88, 008 77, 907 $172,277 166,133 179,174 165,048 150, 051 129, 575 105, 013 88, 441 74, 339 $72, 845 70, 731 79,132 78, 959 77, 010 71, 743 63, 248 59, 450 54, 433 $69,381 67, 269 66,310 64, 992 62,165 55, 618 44, 765 45, 317 41, 807 9,028 6,096 4,960 8,789 8,693 7,992 8,130 8,497 7,368 5, 365 4,491 6, 640 5,282 12, 551 12, 380 10, 378 9, 850 11,361 10, 840 13, 329 17, 536 15, 098 10, 924 6,276 5, 953 7, 867 8,040 5,393 8.317 14, 032 11,871 8,852 26, 721 18, 037 13, 703 14, 458 17, 790 18, 221 21, 863 25, 590 24, 515 19, 597 19, 200 31, 053 27, 330 3 132, 091 103, 070 86, 393 95, 012 111,819 115, 839 123,174 126,184 128, 696 119, 467 114, 501 157,674 154, 059 325,107 314, 838 261, 624 246,127 262, 786 248, 825 232, 058 213,807 198,317 174, 017 134,855 151, 084 198, 804 223,660 160, 504 227. 773 293,095 268, 798 222, 503 75, 524 54, 395 39, 083 42, 336 52, 018 55, 905 62, 436 71, 690 72, 329 66, 878 61, 249 80, 332 69, 931 142, 665 130, 551 105,838 101, 066 113.952 109, 458 104, 096 100, 432 95, 465 80, 779 60, 639 72, 421 82, 571 98, 840 76, 765 86, 736 105, 874 107,108 93, 070 67, 806 47,134 33, 025 60, 264 78, 985 82, 863 83, 311 80, 277 78, 672 64, 272 56, 318 74, 676 63, 387 199, 439 197, 743 157,660 144, 631 163, 623 155, 929 155, 909 158, 875 139, 040 106, 941 67, 051 75, 998 104, 514 116,158 78,125 122, 415 164. 017 155, 373 130, 289 49, 926 36, 896 29, 369 34, 839 37, 709 38, 571 44, 296 49, 024 51, 456 47, 990 46, 697 58, 346 48, 921 84, 811 77, 635 64,184 61, 490 67, 215 65, 446 68, 370 67,114 66, 360 59,156 45, 752 51, 999 38, 202 66, 685 53, 207 63,233 70, 787 58, 202 52, 887 42, 345 30, 446 23, 848 27,112 32, 539 35, 006 35, 663 42, 657 42, 679 35,159 29, 674 48, 945 42, 986 88, 630 82, 866 70, 339 69, 330 79, 975 78, 783 75, 628 67, 700 60, 005 56, 618 34, 594 41,177 61, 321 65, 574 43,156 50, 866 101, 910 90, 545 75, 629 () C No listing was made for the week due to newspaper strike. Merged with bank D. 5 G Merged with bank K. i Merged with bank C. H (2) K I J $72, 242 70, 659 82, 679 78, 806 71, 038 60, 363 48, 310 40, 560 33, 800 $60, 785 58, 711 68, 252 66, 417 64, 725 61,142 51, 830 46, 456 40, 774 $186,970 181, 675 191, 390 181, 258 173,183 155, 629 130, 561 118,187 104,099 27, 841 18,197 12,189 22, 991 29, 688 31, 404 32, 848 30, 713 29, 349 24, 700 22, 714 30, 013 39, 563 88, 690 4 85, 089 34, 638 23, 419 16, 865 26, 594 32, 214 33,160 35, 680 37, 548 40, 056 35, 614 34, 743 46, 313 113,268 138, 610 153, 024 68, 420 64,154 71, 542 67, 867 57, 667 44, 264 44, 765 41, 418 31, 682 35, 583 45, 407 55, 602 39, 563 49,180 58, 593 54, 512 45, 404 91,042 63, 005 48, 336 61, 476 82, 284 89, 634 97, 590 103, 073 103, 323 86, 491 84, 231 126,127 43, 633 302,162 277, 837 224, 795 212, 675 233,159 233,117 262, 523 321, 250 288, 617 222, 741 142, 099 148,147 200, 633 203, 707 136, 504 209, 956 333,922 299, 612 241,911 () Source: New York Times. W O E o O > Weekly statistics on United States deposits in selected New York banks, Aug. 17, 1955, through Sept. 5, 1956 [In thousands] A Date 1955 Aug. 17 24 31 Sept. 7 14 21 28 Oct. 5 11 18 26 1955 Nov. 2 9 16 22 30 Dec. 7 14 21 28 1956 Jan. 4 11 18 25 Feb. 1 8 15 21 29 Mar. 7 14 21 28 Apr. 4 11 18 25 1 C D E F G J L K M N 0 Q P R Total $3,834 2,982 2,957 2,508 1,652 81, 805 59, 281 55, 068 67,164 84, 558 83,017 114, 781 96,152 $120,242 107,297 103,127 94, 554 64,419 51, 507 64, 247 72,129 80, 770 147, 542 124,284 $56, 574 57, 869 59, 415 57, 687 44, 829 41, 264 50, 994 57, 386 54,106 71, 213 59,312 $66, 581 63,165 61, 659 59,210 40,916 33, 742 45, 061 53,116 57, 656 94, 733 81, 289 $45, 623 43, 486 44, 538 47, 390 36,180 30, 717 37, 649 40,144 38, 372 55, 765 46, 785 $225,177 210,197 202,180 180,015 126, 677 101, 521 130, 477 146, 469 146, 602 230, 475 195, 284 $102, 999 96, 291 92, 907 80, 966 56,188 48, 439 60, 271 66, 500 74, 855 134, 715 113, 534 $17, 532 16, 877 17, 670 16, 329 12, 455 12,273 12, 583 13, 213 14,179 25, 114 21,607 $35, 614 36,056 34, 283 28,117 18, 614 17, 629 21, 609 22,135 24, 878 49, 962 45, 675 $71,227 57, 540 54,370 50, 797 35,003 17, 462 22, 562 29, 469 45, 014 100, 758 85, 322 $4, 858 3,789 3,568 2,814 1,788 1,213 1,202 1,105 3, 569 11, 469 9,863 $5,303 4,606 4,389 3,488 2,679 2,375 2, 445 2, 253 3, 396 8,227 7,094 209, 751 185, 882 184, 428 186, 954 172,306 152, 818 114,882 159, 411 150, 806 92, 667 84, 205 83, 515 88, 261 81, 844 75, 259 54, 352 52, 586 53, 679 121, 685 109, 276 104, 829 104, 466 92, 227 69,058 40, 756 165, 833 154, 894 57, 457 50, 340 55, 466 60, 797 58,044 51,950 39, 721 42, 922 43, 304 72,136 60, 415 53, 869 58, 853 54, 419 45,127 26, 904 22, 221 25, 400 46, 834 41,180 41, 945 44, 229 42, 007 39, 674 27, 666 36, 881 36, 005 183, 520 159, 267 161, 943 168, 074 153, 840 129, 783 85, 493 86,106 87, 355 107,908 94, 769 92, 373 94,125 84, 251 63,156 37, 869 31, 518 33, 073 19, 634 16, 046 16, 547 17, 326 16, 005 12, 022 7,767 23, 766 22,113 41, 321 33, 669 33, 531 34, 613 30, 745 24, 505 15, 591 15, 858 15, 767 77, 358 64, 424 58, 206 54, 675 47,109 35, 511 19, 528 50,786 46, 870 7,998 5,771 4,467 4,103 3,540 2,234 1, 049 5, 859 4,454 4, 359 4, 271 3, 873 3,164 2,309 4,466 4,168 5,664 4, 063 3,243 2,838 2,407 1,480 156,116 113, 659 78, 923 62, 845 73, 719 86, 439 81, 090 101, 344 114, 949 123, 295 90, 022 89, 768 275, 236 263, 848 194, 415 168,113 166,357 63,427 46, 389 28, 538 23, 620 35, 088 42, 874 40, 756 60,582 67, 791 69, 290 45, 731 88, 949 121, 762 116, 514 83,839 71, 910 73,316 147,143 75, 378 32, 361 21,444 33, 212 46,178 40, 343 52, 659 57, 948 57, 572 32, 554 89, 560 138, 917 126, 492 87,030 72,117 73, 551 • 44, 315 28, 447 20, 417 17, 580 21, 668 25, 268 29,159 45, 374 51, 078 51, 392 38, 751 68, 009 85, 977 87, 572 50, 458 43, 764 44,996 31, 363 23, 792 17, 290 17, 040 21, 562 24, 386 17,911 31,807 36, 617 35, 316 19, 375 58, 676 92, 685 73,064 61, 861 53,007 57, 600 36, 859 21,414 12,104 9,715 15, 273 19, 370 17, 524 27, 555 32,153 37,616 26, 278 58, 358 85, 868 74, 827 50, 938 44, 080 43, 772 95, 915 64, 236 42, 908 36, 538 57, 427 70, 301 68, 994 101,817 112, 292 108,150 69, 477 165,168 264, 696 250, 689 170, 926 142, 220 144,415 • 38, 532 26, 662 17, 606 13, 210 22, 249 30,122 32, 237 50, 530 54, 870 56,124 36, 337 96, 013 152, 383 134,173 89, 379 74, 516 73,938 16, 968 9,695 3, 550 2, 679 4,073 5,165 6,165 9,122 9,082 8,209 6,088 14, 869 19, 521 19, 035 12, 983 11,135 • 11,591 14, 956 7,200 3,534 2, 637 4,316 6,906 9,641 17, 808 19, 696 18,928 12, 000 34, 201 50, 884 44, 909 28, 528 22, 647 22, 728 45, 579 26, 815 12, 998 8,194 13, 526 19, 941 15, 706 18, 338 21, 643 24, 741 14, 798 34, 273 58,135 61, 484 45, 510 37, 997 37,155 650 410 169 119 544 3, 205 1,787 2,141 1,133 505 295 586 1,209 1,026 1,078 1,807 2, 341 2,193 1,840 1,755 3,037 3, 460 3,753 2,652 2,159 2, 572 238 96 172 257 180 110 400 536 283 232 201 321 285 239 239 $8, 798 8,558 8,259 6,937 4,876 4,053 4, 393 4,286 7,663 13, 414 11, 562 $203, 322 186, 584 180, 910 174,489 133,452 112,026 130, 042 152, 699 167, 616 259, 348 222, 682 $92, 222 90,008 9,927 7, 866 7,441 8,582 7,785 5,521 3,410 33,199 31, 050 22, 713 12, 231 3, 278 1, 941 2, 597 2,952 2, 523 3, 996 3, 881 2, 985 3, 783 8, 602 10, 692 9, 433 6, 289 5, 585 6,050 1 88, 792 872 855 857 2,571 8,128 6, 989 $1,059,906 985, 305 959, 024 887,106 639,009 530,161 651, 554 746, 319 804, 264 1, 325, 644 1,127,434 © W ttf H O 995 888 687 598 461 229 446 632 560 414 345 346 635 3,268 2,948 1,059,710 921, 627 906,162 932,167 850, 402 711, 282 477, 932 729, 816 708, 320 719, 882 459, 248 274, 419 217, 953 306,012 382, 446 365,062 524,070 585,191 596, 455 397, 461 910,161 1, 361, 049 1, 266, 674 885, 507 749, 834 758, 626 w 0 § a S3 > w m Or CO Weekly statistics on United States deposits in selected New York banks, Aug. 17, 1955, through Sept. 5, 1956—Continued [In thousands! Date May 2 9 16 23 29 June 6 13 20 27 July 3 11 18 25 Aug. 1 8 15 22 29 Sept. 5 A C $7, 204 $211, 848 7,146 211, 294 37, 490 203, 094 8,570 206, 321 7, 995 207, 349 8,168 180, 388 6,770 128, 071 6, 889 120, 607 7,917 201, 316 10, 724 236, 989 8,602 190, 865 7,588 155, 342 6, 362 128, 259 6,139 123, 232 5,829 111,421 7,910 146, 816 23, 209 286, 716 21, 243 258, 593 17, 583 233, 303 D $99,153 100, 860 104, 211 115, 909 116, 518 98, 781 66, 861 68, 744 92, 350 106, 906 87, 071 69, 361 55, 291 58, 441 58, 435 75, 563 161,845 145, 795 134,116 E $109, 888 114, 211 113, 642 120, 624 119, 627 93, 456 58, 886 58,130 105, 265 122, 041 96, 338 75, 901 58, 298 55, 526 55, 994 73, 641 166, 797 147, 887 134, 137 F $56, 640 56,933 64, 015 73, 041 74, 607 63, 606 46,169 47, 740 61, 007 69, 568 55, 033 46, 559 37, 344 34,432 30, 603 47, 076 103, 963 94, 845 86, 956 G $75,034 75, 763 71, 099 78, 471 78, 833 59, 686 36, 536 42, 372 97, 284 102, 008 72, 908 58, 942 49, 361 42, 643 33, 260 35, 070 83, 405 75, 470 70, 473 J K $59, 772 $194, 246 197, 276 60,125 59, 523 204,163 62, 511 218, 948 220,463 62, 041 175, 610 54, 076 36, 560 113, 646 116, 417 36,403 62, 777 200, 326 73, 534 221, 850 56, 337 170, 335 135, 209 43,649 34,150 105, 930 33, 023 101, 723 29, 513 95, 259 36, 944 136, 484 74, 835 319,142 66, 202 285, 691 66, 503 251, 077 L $96, 953 97, 787 97, 997 105, 442 107, 361 85, 480 56, 826 57, 941 93, 750 108, 566 82, 876 63, 850 52, 393 48, 334 41,481 57, 851 140, 098 125, 029 110,894 M $16, 435 17, 894 19,455 20, 706 19, 208 18, 210 13, 756 14,617 15, 582 16, 692 12, 099 10, 358 8,736 8,544 8,005 11, 391 27,101 25, 035 24, 266 N $30, 489 30, 318 32, 770 37, 624 37, 375 27, 286 16, 676 19,159 33, 893 37, 240 28, 095 21,402 16, 446 16, 516 14, 758 22, 624 57,460 51, 314 44,172 0 $54, Oil 57,162 51,815 48,409 47, 498 40, 844 26, 065 18,455 32, 506 44, 514 42, 349 32, 464 24, 235 24, 369 24, 692 33,481 83, 025 72, 892 65, 811 P Q $356 337 319 298 268 248 227 533 1,369 2, 003 1,717 1,440 1,129 1,313 1,610 3,825 13, 485 12, 074 9,771 $3, 285 3,285 3,948 4,306 3,966 3,364 2,673 3,062 2,947 2,807 1,981 1, 576 1,278 1,314 1,425 3,325 8,649 7,813 6, 376 R Total $252 209 184 167 149 121 75 55 38 34 23 17 14 70 130 547 2,371 2,127 1,720 $1, 015, 566 1, 030, 600 1, 033, 725 1,101, 347 1,103, 258 909, 324 609, 797 611,124 1, 008, 327 1,155,476 906, 629 723, 658 579, 226 555, 629 512,415 692, 548 1, 552,101 1, 392, 010 1, 257,158 o 3 Q W Source: New York Times. Weekly statistics on United States deposits in selected New York banks, Sept. 5, 1956, through May 1, 1957 [In thousands] A Date 1956 Sept. 5 12 19 26 Oct. 3 10 17 24 31 Nov. 7 14 20 28 Dec. 5 12 19 26 1957 Jan. Feb. Mar. Apr. May 2 9 16 23 30 6 13 20 27 6 13 20 27 3 10 17 24 1 K C D E $17, 583 $251,077 $233, 303 $134,116 $134,137 10, 494 166, 614 90, 939 90, 306 167, 275 8,912 145,134 145, 577 72, 308 79, 411 9,389 171,917 163, 659 95, 262 85, 486 8, 950 185, 042 112,628 195, 223 95.375 144, 241 144, 966 6,305 S3, 838 70,093 9,027 100, 986 108, 924 47, 820 86, 923 22, 866 65, 772 76, 436 114,149 30, 558 17, 348 64, 800 127, 772 78, 323 32, 871 13, 825 72, 999 90, 622 105, 594 47, 007 9,813 63, 705 82, 526 74,102 38, 417 15, 774 97, 500 96, 338 130, 629 50,098 15, 698 90, 360 83,124 134, 367 42, 528 10, 695 93, 481 88, 098 111,579 43, 007 4,437 64,106 69, 614 63, 735 25, 911 30, 064 71,339 149,027 47, 366 88, 771 48, 826 86, 695 214, 364 52. 544 142, 235 39, 308 19,626 3,448 1,211 1,175 2,079 2,102 3,239 3,423 3,422 2,522 5,756 7,356 18,224 12,983 9, 428 8,091 8,010 79,388 53,038 30,071 20, 691 25,813 54,868 27, 721 62, 620 69,243 76,454 49,127 122,477 163,181 233,124 151,269 111, 486 104,275 127,492 186, 778 124,568 68, 842 51,203 50,063 76,771 55,125 71,223 71,048 89, 808 68,570 123, 738 162, 671 234,991 168, 363 131, 587 117,119 135,143 53,908 42, 778 24,851 12,371 14,522 24,Oil 18, 775 41, 732 45,458 51,376 32,396 75,383 93, 678 175,339 119,280 86, 671 76,012 85,200 116,322 63,442 21,649 11, 600 10,690 37,488 16,306 32,033 35, 745 41,408 23,957 62,898 89,572 173,612 122, 887 88, 951 75, 779 87, 725 i As reported in source. Detail does not add to total. Y $86, 956 62,514 61,607 70,869 76,783 56, 816 41,206 27,965 26,967 27, 412 26,594 56,961 58, 872 51,199 32, 285 34, 271 39,361 G $70, 473 49, 424 41,172 51, 837 62,621 49, 460 46, 378 62, 899 55,123 44, 252 29, 230 38,441 39, 434 37, 005 22,186 18, 814 24,796 36,740 23,748 24,834 16,401 14,652 8,801 10,718 9,828 12,764 8,387 19,030 15,984 14,287 6,702 31,671 15,403 33,364 21,840 32,491 27,715 23,384 15,862 45,878 59,427 50,371 92,798 102,708 129,647 76,071 84,287 58,144 1 62,678 51,968 59,068 55,466 60, 739 L H $66, 503 $110, 894 50, 753 73, 242 45, 354 63, 555 52, 467 74, 927 57,947 83, 977 42, 854 62, 700 65, 925 42, 603 148,071 27, 877 126,396 28, 336 95, 333 38, 354 61, 309 35,685 114, 531 163,387 176,308 125, 315 128,504 92, 092 55,141 41, 387 25,146 30. 327 23,754 35,940 24, 736 17,117 8,801 5,241 6,396 27,723 13,200 21,288 21,223 30,754 20,433 46, 281 63,876 95,515 65,235 47, 611 40,790 49,273 37,187 27,009 14,358 8,838 7,319 23,353 13,633 32, 439 37,039 36, 689 20,599 52, 908 69, 871 146,259 103, 795 74, 040 64,389 70,934 M $24, 266 16, 624 16, 684 17, 710 17, 728 13, 255 10, 922 9,539 7,815 9,944 9,988 36,487 40,224 27, 944 11, 200 18, 757 25, 494 N $44,172 27, 913 27, 087 32, 357 36,123 25, 298 26, 489 43, 649 37, 706 31,170 21, 851 62,419 66, 383 49, 340 21,186 57,715 94,706 0 P R Q $6, 376 4,240 4,425 4,828 4,569 3,136 2,209 1,473 1,628 2,935 3,118 3,612 2,958 2,098 1,082 1,574 1,842 $65, 811 43, 891 28, 639 31, 261 37, 802 29, 687 26, 834 36, 729 31, 815 31, 001 22,015 60, 925 66,168 48, 648 20, 821 7,473 6,992 $9, 771 5,724 3,789 3, 536 3,329 2,284 6,581 30,104 14, 568 9,894 6,209 4,058 2,580 1,511 74,466 21,962 10,668 11,694 33,900 12,321 2,757 6,700 8,278 5,362 3,689 1,916 1,919 6,335 3,031 6,262 10,494 17,067 6,465 4,271 7,239 8,799 15, 038 6,955 8,021 15, 894 6,898 6,375 11, 546 15,921 3,382 5,178 11,335 11,604 24, 938 13,859 13,540 34,038 23,007 21,776 58,939 43,298 14,059 38, 256 31,875 10, 515 1 26,974 1 23,214 9,426 ! 23,253 , 19,586 11,477 27,205 26,323 69 65 99 102 130 1,742 1,079 2,629 2,401 2,574 2,291 1,346 1,793 1,442 2,613 2,307 1,403 325 518 607 628 441 365 328 327 3,625 4,445 5,564 3,692 2,606 2,208 2,599 564 122 68 381 378 813 632 Total $1, 720 $1, 257.158 860, 952 999 744, 316 662 866,144 639 978, 698 601 735, 340 407 623,109 282 i 718, 273 186 651, 583 115 620, 418 76 484, 609 47 931,190 30 944, 339 20 785, 213 12 433, 670 15 580,779 13 797, 629 12 10 7 2 1 1 1 1 1 1 1 1 1 81 8,050 7,012 5,172 4,402 4,429 a 707,032 447,830 213,690 143,149 149, 358 329, 553 189,670 347,628 373,795 426,709 277,703 649,291 869,092 1,447,674 999, 505 739,442 656,694 752,342 Source: New York Times, <3> 62 DEBT CEILING INCREASE Senator DOUGLAS. I am not indicting them. That is, I concealed their identity by giving them letters rather than names. Secretary ANDERSON. I, frankly, have been studying the problem, as I have indicated. I have not yet been persuaded that it is to the Government's net advantage to pay for the services rather than to charge interest of some kind on the tax and loan accounts. We have asked Mr. Campbell to reexplore that problem and I haveasked Mr. Baird to do it. Mr. Baird has brought up to date a memorandum of his latest thinking which I will be glad to supply, and there is a secondary problem, of course. One of the services which the banks render, of course, is the issuance of savings bonds and that sort of thing, and in addition to banks you have a large number of commercial institutions that do it as well. So that you run into the additional complication that if you set up a standard of compensating the banks for this kind of service then do you compensate comparable commercial people who are now just charging this as part of their overhead or taking on some additional burden ? (The memorandum referred to is as follows:) TREASURY COMMENT ON PROPOSAL T H A T CONGRESS E N A C T LEGISLATION P E R M I T TING B A N K S T O P A Y INTEREST ON BALANCES I N TREASURY T A X AND LOAN A C COUNTS, JANUARY 24, 1958 I. BACKGROUND Exhibit 1, attached hereto, contains a brief history of t h e t a x and loan accounts and a s u m m a r y of c u r r e n t operating procedures. Exhibits 2, 3, and 4 contain d a t a reflecting the volume of transactions in the accounts during t h e calendar year 1957. Exhibit 5 reflects t h e fluctuations in t a x and loan account balances by showing t h e high and low balances in the accounts during each month of calendar year 1957. II. PROBLEMS INVOLVED I N REQUIRING BANKS TO PAY INTEREST ON TAX AND LOAN ACCOUNTS A. Interest rate on Government securities Experience h a s shown t h a t when banks a r e permitted to m a k e payment by a deposit credit in their t a x and loan account for the purchase price of Government securities, t h e r a t e s of interest paid on such issues a r e less t h a n otherwise would be paid if the funds did not clear through t h e account. For example, t h e r e is listed below information with respect to eight different issues of T r e a s u r y bills, which is self-explanatory: Special issues eligible for payment by credit in t a x and loan a c c o u n t : Rate D a t e of i s s u e : (percent* Oct. 17, 1956 2.686 Nov. 16, 1956 2.617 Dec. 17, 1956 2.585 May 27, 1957 2.824 Regular weekly issues not eligible for payment by credit in t a x and loan account: D a t e of i s s u e : Oct. 18, 1956 3.080 Nov. 15, 1956 2.979 Dec. 20, 1956 3.331 May 31, 1957 3.245 I t is reasonable to assume t h a t any payment of interest on balances in t a x a n d loan accounts would be reflected in higher interest r a t e s which it would be necess a r y for the T r e a s u r y to pay on Government securities. This would be particularly significant during periods of heavy borrowing as occurred during World War II. DEBT CEILING INCREASE 63 B. Effect on volume of transactions in tax and loan accounts Should the Congress enact legislation requiring banks to pay interest on balances in tax and loan accounts, the volume of funds cleared through the accounts would possibly be materially reduced. The greater part of credits in tax and loan accounts represents transfers from accounts of customers of banks and, therefore, does not represent "new" money to the banks. It stands to reason that many banks, rather than take the money out of their customers' accounts and immediately credit same in their tax and loan accounts and pay interest on such balances, would discontinue clearing the funds through the tax and loan accounts and take advantage of the "float" in their favor which results when their customers make payments by check either to Federal Reserve banks or directors of internal revenue. Such action on the part of banks would defeat the purpose for which tax and loan accounts are maintained and as a result would create many problems for the Treasury. C. Determination of earning value to banks of Treasury tax and loan account balances The wide fluctuations in the balances in tax and loan accounts as reflected in exhibit 5 make the earning value of the balances highly questionable for the majority of banks. Most banks are not in a position to invest the fluctuating portions of the account for the short time that the funds are available to them. It is significant to note, also, that balances with member banks are subject to reserve requirements of the Federal Reserve Board averaging approximately 10 percent and subject to insurance assessments of the Federal Deposit Insurance Corporation. I I I . PROBLEMS ENCOUNTERED I N ALLOWING CREDIT TO B A N K S FOR SERVICES RENDERED TO T H E GOVERNMENT FOR W H I C H T H E Y ARE NOT O T H E R W I S E COMPENSATED The recommendation of the Comptroller General that present laws be amended to permit the banks to pay interest on balances in tax and loan accounts is coupled with the proposal that credit be allowed banks for services performed for the Government for which they are not otherwise compensated. This proposal contemplates the payment of fees to banks for services rendered the Government. In his audit report to the Congress covering the Office of the Treasurer of the United States for the fiscal year ended June 30, 1954, the Comptroller General mentioned the following services performed by banks for which they were not compensated : 1. The sale and issuance of United States savings bonds. 2. The handling of withholding, social security, and excise tax deposits. 3. The distribution to bank customers of announcements and the receipt of subscriptions for other Government securities. 4. The furnishing of confidential information to the Internal Revenue Service regarding large currency transactions and interest payments. 5. The issuance of bank drafts. Other functions performed by banks such as the cashing of Treasury checks without charge against individual payees are not included in the services set forth above. Many banks look upon the cashing of Treasury checks as a service to the Government and do not make a charge against the individual payees of the checks. On the other hand, a substantial number of banks throughout the country do make a charge against individuals for cashing Treasury checks. Should a system of paying fees be adopted, the question would be raised immediately as to whether or not the cashing of Treasury checks without charge is a service for which the banks should be paid. The Comptroller General's recommendation provides that the fees to which banks would be entitled for services rendered the Government would be credited against the interest charged the banks on balances in tax and loan accounts. This would not be possible in all cases inasmuch as there are approximately 14,500 banks throughout the country which render services to the Government, but only 11,000 of such banks maintain tax and loan accounts on their books. Also, other financial institutions and commercial concerns render some of the services mentioned by the Comptroller General. The payment of fees could not, of course, be limited to those banks which maintain tax and loan accounts on their books. Comments with respect to the payment of fees to banks for rendering the five services mentioned by the Comptroller General in his report to the Congress covering the Office of the Treasurer of the United States for the fiscal year 1954 are set forth below: 64 DEBT CEILING INCREASE 1. The sale and issuance of United States savings bonds.—The attached statement, exhibit 2, shows that banks issue at least 59 percent of all savings bonds sold. Banks absorb substantial amounts of expenses not only in connection with the actual issuance of savings bonds, but also in advertising and sponsoring the program in their local communities. It would be impossible to place a dollar value on the services rendered by banks throughout the country in connection with the savings-bonds program. The sale and issuance of savings bonds is not confined to banks. There are approximately 8,000 commercial concerns throughout the country which also act as issuing agents for the bonds. If it were decided to reimburse banks for expenses incurred in connection with the savings-bonds program, it would be necessary to give the same consideration to the other 8,000 agents. 2. The handling of withholding, social security, and excise tax deposits.—The Comptroller General, in his report to the Congress, estimates that the cost to banks of rendering this service is 5 cents per transaction. If it were decided to pay banks a fee for this service, I am sure they would be able to prove conclusively that their expenses (tellers' time in accepting payments, preparation of transmittal letters to Federal Reserve banks, and postage) in connection with the handling of each transaction greatly exceed 5 cents. 3. The distribution to bank customers of announcements and the receipt of subscription for other Government securities.—Banks distribute announcements and receive subscriptions for the purchase of marketable securities and they handle matured marketable securities for redemption or for exchange into new issues. Banks also render considerable assistance to the Treasury in the weekly sale and distribution of Treasury bills. Treasury bills are usually issued with maturities of 91 days, with an issue maturing each week for 13 consecutive weeks. The proceeds of these bills are not deposited in tax and loan accounts. In bidding for Treasury bills many subscribers submit their tenders through banks, the banks check with dealers on possible bid ranges and enter their customer's bid for the amount requested. It would not be feasible to pay banks fees for rendering these services. 4. The furnishing of confidential information to the Internal Revenue Service regarding large currency transactions and interest payments.—The Comptroller General, in his report to the Congress, stated that these services are of value to the Government but he had no basis for estimating the amount of expenses incurred by banks in rendering the services. The Treasury also is not in a position to accurately estimate the amount of such expenses. It is important to point out that financial institutions, other than banks, also render these services. It is conceivable that, if banks and other financial institutions were paid a fee for rendering the services, the cost to the Government would run into a very large sum of money. 5. The issuance of bank drafts.—In order to facilitate the transmission of miscellaneous collections made by public officers to Federal Reserve banks and branches for credit in the account of the Treasurer of the United States, arrangements have been made with approximately 2,300 banks throughout the country to issue bank drafts to Government officers in exchange for their collections. The terms and conditions under which the bank drafts are issued are set forth in our Bank Draft Procedure Manual, copy attached as exhibit 6. Treasury balances are maintained with approximately 2,000 of the banks as a basis for rendering the service, the other 300 banks having elected to render the service without the benefit of a Treasury balance. These 300 banks could at any time request and receive a Treasury balance based upon the volume of drafts they are furnishing Government officers. The compensation to banks for issuing drafts is now being taken care of under a procedure which has been in effect for the past several years. The present procedure has proved to be satisfactory in every respect. Should the Congress enact legislation requiring banks to pay interest on balances in tax and loan accounts and providing for the compensation of banks and other commercial concerns, either on a fee basis or reimbursement of actual expenses, for services rendered the Government, it would, of course, be necessary for the Treasury to obtain additional employees to handle the tremendous volume of work involved. How many additional employees ultimately would be required to (1) handle the collection of interest on balances in tax and loan accounts; and (2) review, settle, and pay claims of banks for services rendered, only time and experience would tell. DEBT CEILING INCREASE 65 IV. C O N C L U S I O N S The payments to banks and other agents for services rendered plus the substantial additional administrative expenses of the Treasury and increased interest payable by the Treasury on public-debt obligations would, in the opinion of the Treasury, exceed the interest collected on balances in tax and loan accounts. The question of expenses, while very important, is not the primary consideration. The Congress has provided a flexible means of regulating the Treasury's money flow by authorizing the Secretary to maintain deposits with banks and to withdraw such deposits as they are needed for Government expenditure. The exercise of this authority requires the application of a great deal of judgment and discretion. It cannot be reduced to a mechanical process and the depositary services rendered by banks cannot be reduced to a dollar value. EXHIBIT 1 OPERATION OF SPECIAL DEPOSITARIES (TAX AND LOAN ACCOUNTS) The system of special depositaries originated during World War I. The first Liberty Loan Act of 1917 provided that banks purchasing securities issued under terms of the act, for their own account or for the account of their customers, could deposit the proceeds from such purchases into special accounts known as war loan accounts. Until 1935, deposits in these accounts were not subject to reserve requirements. Originally the banks were required to pay 2 percent interest on such deposits. However, this was considerably below prevailing interest rates at that time. In the early 1930's, this interest rate was lowered and then eliminated entirely along with interest payments on other demand deposits in keeping with the provisions of the Banking Act of 1933. During the 1930's, receipts from the sale of Government securities were relatively small and comparatively little use was made of the war loan accounts. The heavy borrowing requirements of the Federal Government accompanying World War II provided a need for the Treasury to utilize more fully the war loan accounts. The act of April 13, 1943 (57 Stat. 65) suspended, for the duration of hostilities plus 6 months, all reserve requirements and Federal deposit insurance assessments against balances in these accounts. The accounts were again subject to reserve and insurance requirements after June 30, 1947. Following World War II, the Congress provided for wider uses of these accounts by authorizing the Treasury to use them for processing certain tax receipts. Beginning w^ith March 1948, the banks were permitted to credit to these accounts receipts of withheld income taxes, which previously had been turned over to the Federal Reserve banks monthly or more frequently. On January 1, 1950, the Treasury revised the system for deposit of witheld income taxes and extended the provisions for deposit to war-loan accounts to include deposits of payroll taxes from the old-age insurance program. The war-loan accounts were renamed "tax and loan accounts" on January 1, 1950. Other taxes have since been made eligible for deposit in these accounts. Under a special arrangement, large quarterly payments (checks of $10,000 or more) of income and profits taxes, may be deposited in tax and loan accounts when, and to the extent, that the funds are not immediately needed by the Treasurv. This arrangement was first provided for quarterly tax payments of March 1951. Beginning in July 1951, railroad retirement taxes became eligible for deposit to these accounts. In July 1953, certain excise tax payments became eligible. It must be borne in mind that deposits are not made by the Treasury into these accounts. Deposits to the tax and loan accounts occur in the normal course of business under a uniform procedure applicable to all banks whereby customers of banks deposit with them tax payments and funds for purchase of Government securities. In most cases the transaction involves merely the transfer of money from a customer's account to the Government's account in the same bank. On occasions, to the extent authorized by the Treasury, banks are permitted to deposit in these accounts proceeds from subscriptions to public debt securities entered for their own account as well as for the accounts of their customers. The working cash of the Treasury is held in the Federal Reserve banks and branches. The Treasury draws upon these balances for its daily disbursements. As these balances become depleted they are restored in part through various receipts deposited directly to the Treasurer's account at the Federal Reserve banks. 66 DEBT CEILING INCREASE However, a large part of the receipts to these accounts is derived by calling in (transferring) funds from the tax and loan accounts in commercial banks. In brief, the tax and loan account system permits the Treasury to leave funds in the banks and in the communities in which they arise until such time as the Treasury needs these funds for its operations. In this way, the Treasury achieves a balancing effect not obtainable by any other known device, and thus discharges its primary fiscal responsibility of so handling its money as not to affect unduly the economy. Special depositaries are divided into three groups as follows: Group A: Those banks whose tax and loan account balance is less than $150,000. Withdrawals from these banks are made less frequently than from banks in the other two groups. There are 9,582 banks in this group. Group B : Those banks whose tax and loan account balance is $150,000 or more, except those banks which are included in group C. Withdrawals from group B banks are usually made at least twice each week. The frequency of withdrawals from this group of banks will vary depending upon the need for funds at the Federal Reserve banks. There are 1,340 banks in this group. Group C: Those banks having total deposits amounting to $500 million or more as shown by the latest "call" reports of the bank supervisory authorities. Calls for withdrawals of balances with group C banks are usually made at the same time as calls on group B banks. However, calls on group C banks are subject to later adjustment by way of an increase, decrease, or cancellation on any particular day that Treasury closing balances in the Federal Reserve banks are expected to deviate substantially from the desired level. There are 45 banks in this group. The Treasury, to the extent possible, gives advance notice of withdrawals to the three groups of banks. EXHIBIT 2 Percent of tax and loan credits to total deposits for period January to December 1957 [In millions] Total deposits U. S. Government securities: Other marketable public debt issues J . _ Income and social security employment taxes withheld by employers, railroad retirement taxes withheld by employers, and certain Federal excise taxes- . _ _ Certain cash payments of individual and corporation income taxes, represented by checks of $10,000 and over, eligible for deposit _ - . _ _ - _ _ . .._ _ . . . - . __ Total 1 Excludes regular weekly issues of Treasury bills. Tax and loan credits Amount Percent of total $4, 604 15, 083 $2, 725 14, 965 59.2 99.2 45, 550 27, 974 61.4 4,093 4,093 100.0 69, 330 49, 757 71.8 67 DEBT CEILIXG INCREASE EXHIBIT 3 Tax and loan credits for period January to December 1957 [In millions] U . S. G o v e r n m e n t securities I n c o m e a n d social securi t y employm e n t taxes withheld b y Other m a r employers, ketable railroad reSavings tirement public d e b t taxes w i t h bonds issues held b y e m ployers, a n d certain Federal excise taxes Month $304 233 227 227 240 214 246 215 197 202 195 223 F e b r u a r y _. March April ._ May . _ _. -_ __ __- . . . . June _ __ __ _ _ _ _ _ _ _ July August _ ._ September October D e c e m b e r . _ __ __ __ .. Total _._ 2,922 1,693 2,692 1,334 1,030 548 $1,171 3,014 2,757 1,192 3,015 2,906 1,247 3,002 2,862 1,222 2,824 2,762 14,965 27,974 $3, 261 1,485 2,725 Individual a n d corporation income taxes represented b y checks of $10,000 a n d over Total 2,086 137 $1,475 3,247 8,092 1,442 4,740 5,207 4,552 4,910 5,751 2,759 4,049 3,533 4,093 49, 757 $1, 847 23 EXHIBIT 4 Tax and loan accounts for period January to December 1957 [In millions] Month Deposits Month Withdrawals $3,238 2,381 4,208 3,838 3,938 5,443 5,801 Deposits August September, October November. December.. January,. February. March April May June July $1, 475 3,247 8,092 1,442 4,740 5,207 4, 552 High and low balances in tax and loan accounts December 1957 Withdrawals 4,411 3,265 6,004 3,037 4,033 4,910 5,751 2,759 4,049 3, 533 Total 49, 757 49, 597 EXHIBIT 5 during the period January to [In millions] Month January ___ February March April __ __ May June _ July August __ _ September... October-.. __ November December _. Day __ _ ___ __ _ ___ __ ._ __ __ _ ... __ __ . __ ___ _ _ ___ ___ __ __ ___ _ __ 2 28 28 1 28 21 3 23 27 1 29 24 High $2, 872 2,027 6,078 5,596 4,509 5,027 6,294 3,920 5,886 5,755 3,583 3,589 Day 16 11 13 18 15 17 31 15 16 28 13 13 Low $856 813 1,038 3,253 2,240 2,050 2,833 1,078 1.353 2,286 1,638 1,710 68 DEBT CEILING INCREASE B A N K D R A F T PROCEDURE M A N U A L TREASURY DEPARTMENT, OFFICE OF T H E SECRETARY, Washington, D. C, January 7,1949. Fiscal Service—Bureau of Accounts GENERAL PROCEDURE 1. Purpose of procedure.—The purpose of this procedure is to facilitate t h e transmission of miscellaneous collections made by public officers to F e d e r a l Reserve b a n k s and branches for credit in the account of the T r e a s u r e r of t h e United States. 2. Banks authorized to furnish bank drafts to Government officers.—The T r e a s u r y , a t a location where Government officers h a v e need of banking facilities for t h e purpose of exchanging their collections for a bank draft, will authorize a bank-holding designation as a depositary a n d financial agent of t h e Government to render the desired service. T h e use of bank drafts facilitates t h e transmission of collections to regional offices for subsequent deposit to the credit of the T r e a s u r e r of the United States. 3. Title of banks holding such authorization.—Banks authorized to furnish drafts a r e referred to as "bank draft depositaries." 4. Type of collections to be exchanged.—Bank draft depositaries will receive from Government officers their collections consisting of currency, coin, local a n d out-of-town checks, postal money orders and postal notes, a n d issue in exchange therefor a d r a f t d r a w n in favor of the T r e a s u r e r of the United States. 5. Description of the draft.—The draft should be payable only to t h e Treasu r e r of t h e United States and should be drawn on a F e d e r a l Reserve bank or branch of the district in which the bank is located, or on a correspondent bank located in the same city as such F e d e r a l Reserve bank or branch. The drafts m u s t be presented to t h e Government officers a t the time of presentation of their collections. 6. How checks presented in exchange for drafts will be endorsed.1—The following form of endorsement and notation will be placed on checks, postal money orders, a n d postal notes by Government officers subject to this p r o c e d u r e : On face of check: "This check is in payment of an obligation to the "United States and m u s t be p a i r a t par. N. P . Do not wire nonpayment. "(Government agency)" On reverse of check: " P a y to t h e order of in exchange for a " ( N a m e and location of bank) d r a f t d r a w n payable to the T r e a s u r e r of the United States. "(Date) " ( N a m e and title of Government officer)" Uncollectible checks 7. Action on part of bank.—If a check (which w a s included in t h e funds exchanged for a d r a f t ) is uncollectible, the bank will notify the Government officer concerned, giving such information a s may be available regarding t h e uncollectible item. 8. Reimbursement to bank for amount of uncollectible checks.—The b a n k will be reimbursed by the Government officer originally presenting t h e check for t h e amount of t h e uncollectible item. T h e r e is a t t a c h e d a copy of T r e a s u r y F o r m No. 448 (bank's acknowledgment of cash redemption of uncollected c h e c k ) . 1 In some instances checks presented in exchange banks. If such banks disregard the notation on t h e a t par, the checks should be treated as uncollectible will be reimbursed by the Government officer as noted for drafts will be d r a w n on n o n p a r face of the checks and refuse to r e m i t items and t h e bank issuing the d r a f t in sec. 8. 69 DEBT CEIUING INCREASE C O M P E N S A T I O N OF B A N K S FOR F U R N I S H I N G B A N K DRAFTS 9. Policy of the Treasury in compensating hank draft depositaries.—Deposit a r i e s a r e compensated for their services through the m a i n t e n a n c e of balances w i t h such depositaries and a r e permitted to purchase 2 percent depositary bonds to be held as security for t h e balances. 2 T h e a m o u n t s of t h e balances maintained with depositaries a r e based upon the average monthly dollar a m o u n t of drafts furnished. T h e following schedule shows the amounts of balances to which depositaries a r e entitled upon the basis of t h e average monthly dollar amounts of drafts f u r n i s h e d : Amount of Treasurer's balance to Average monthly dollar a m o u n t of drafts furnished by be allocated bank bank d r a f t depositary : draft depositary $1 to $3,000 $2,000 $3,001 to $5,000 3, 000 $5,001 to $8,000 4, 000 $8,001 to $12,000 — 5, 000 $12,001 to $16,000 6, 000 $16,001 to $20,000 7, 000 $20,001 to $30,000 8, 000 $30,001 to $40,000 0, 000 $40,001 to $50,000 10, 000 $50,001 to $70,000 12, 000 $70,001 to $100,000 15, 000 I t is believed t h a t this schedule of compensation will be equitable, however, if due to u n u s u a l circumstances a t a particular point, a bank is of the opinion t h a t the schedule is not equitable and will so advise the T r e a s u r y , t h e m a t t e r will be given prompt consideration. As indicated, t h e schedule does not apply in cases where t h e dollar volume of drafts furnished exceeds a monthly average of $100,000. Such cases will be given individual consideration with a view to arriving a t a basis of compensation t h a t is equitable from both the standpoint of the bank and the Treasury. 10. Periodic adjustment of Treasurer's "balance.—Government agencies using the facilities of the bank will furnish the T r e a s u r y with information as to t h e monthly dollar amount of drafts obtained from the bank. T h e T r e a s u r y will review such information and, applying the schedule outlined above, will adjust the T r e a s u r e r ' s balance periodically, not less frequently t h a n twice per year. 11. Procedure to be followed in establishing Treasury balance.—The Treasu r e r ' s balance, when computed a s above, is placed to t h e bank's credit on t h e books of the T r e a s u r e r of t h e United States, and upon t h e basis of t h e b a n k ' s subscription, t h e funds a r e used to purchase a 2-percent depositary bond in like amount. T h e bank will acknowledge credit by signing a t r a n s c r i p t (form 18) prepared and forwarded by t h e Treasury. F u r t h e r reports on form 18 will be submitted by the bank on t h e last business day of each month and at such other times as m a y be requested by t h e Treasury. T h e balance in t h e T r e a s u r e r ' s account will not be w i t h d r a w n prior to t h e expiration of 30 days' w r i t t e n notice from the United States T r e a s u r y . 12. Notice of withdrawal or amendment of provisions of this manual.—The Fiscal Assistant Secretary of the T r e a s u r y m a y waive, w i t h d r a w , or amend a t any time, or from time to time, any or all of the provisions of this m a n u a l . Notice of such changes will be given by an a p p r o p r i a t e amendment or supplement to this manual. E. F . BARTELT, Fiscal Assistant Secretary. 2 Depositary bonds may be redeemed at par and accrued interest, at any time, at the option of the United States or the depositaries and financial agents, in whole or in part, upon not less than 30 nor more than 60 days' notice in writing given by either party to other other. The 2 percent depositary bonds are issued in registered form only in the name of the Treasurer of the United States in trust for the depositaries and financial agents to which they are allotted, and are not transferable. Checks covering interest on the bonds are forwarded semiannually on June 1 and December 1. Such interest is subject to all Federal taxes now or hereafter imposed. The bonds are subject to estate, inheritance, gift, or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. 70 DEBT CEILING INCREASE The CHAIRMAN. I do not think the banks should be compensated. They are getting the business. The business is going through them. I don't believe they should be compensated for it. I do not want to take Senator F rear's time, but last September you had $6.7 billion in cash, and I wonder if it would be possible to furnish the committee with a statement of how many banks would you say, Senator Douglas \ Senator DOUGLAS. I would say take a hundred of the largest banks which had the largest deposits, take the deposits, for example, of September 30, and what you estimate they will have on March 31 under the old ceiling, because this figure, this table you gave me, I imagine, was prepared on the old ceiling, was it not, January 9'? Secretary ANDERSON. Yes. The CHAIRMAN. 1958? Secretary ANDERSON. Yes. The CHAIRMAN. Then on June 30 under the old ceiling without the increase you have got $6.1 billion estimated on hand. Now that is a large amount of money to leave in the banks without the payment of interest, and I think the banks have this business going through them and they are compensated in that way. Secretary ANDERSON. Well, the way it is done, is that we notify The CHAIRMAN. I know, but I am speaking of the way it gets into the banks. I t is put in by the taxpayers, is it not ? Secretary ANDERSON. That is really just a transfer within the banks. The CHAIRMAN. That is right. Secretary ANDERSON. If you go to a bank The CHAIRMAN. I do not see that the banks are entitled to special consideration for what they do, any more than all of us who are in business and deduct the social security and pay it to the Government, we are not paid anything. Secretary ANDERSON. I am not talking about that kind of compensation. The kind of compensation we were talking about is the services which they give to us in issuing savings bonds or things of that sort, and the service, of course, which they give in the cashing of Treasury checks, and a whole line of services. Now, as I understood when this issue was raised by Mr. Campbell, the Comptroller General, it was raised on the basis that instead of leaving the money on demand and not paying interest, that you make some interest charge and that because you were making an interest charge you then set up a scale of payments for the services, which the banks would render on behalf of the Treasury, so that you either let them have the money in the banks, in the tax and loan accounts or you pay for the services. Senator WILLIAMS. Might I ask a question in connection with t h a t : You say that this money is merely transferred in the same bank but the bulk of this money to which we are referring here are payments of income taxes and corporation taxes, are they not ? Secretary ANDERSON. I t is both that and the sale of securities. Senator WILLIAMS. That is right. Secretary ANDERSON. Checks of $10,000 or more, I think Seantor WILLIAMS. But a lot of it would be revenue, normal payment of taxes that you are speaking of transferring. DEBT CEILING INCREASE 71 Secretary ANDERSON. Yes. The total last year was more than $49 billion deposited all told, and of that $15 billion came from the sale of marketable Government securities. Senator WILLIAMS. And the other 35 Secretary ANDERSON. $28 billion came from income and socialsecurity taxes, and individual and corporate income taxes $4 billion. Senator WILLIAMS. But, speakings—that is about 31 Secretary ANDERSON. Well, there are $2 billion—$2.7 billion for savings bonds. Senator WILLIAMS. Well, all right. But the procedure is that the people in the areas, we will say, for instance the Chicago area, you have your district office in Chicago, for all of the immediate areas surrounding that for a hundred miles, the people w^ill send their checks to the Director of Internal Revenue, the payment of their taxes, that would be deposited in the banks on which the checks are drawn. They would be deposited in the central banks in the area of Chicago or Wilmington or New York; is that not true ? Secretary ANDERSON. The process, as I understand it, Senator Williams, is that on checks over $10,000, there is an arrangement between the Treasury, the Federal Reserve, and the banking system. Senator WILLIAMS. And coming back to the bank upon which they are drawn ? Secretary ANDERSON. And coming back to the bank upon which they are drawn. The CHAIRMAN. Senator Douglas, can you add any information that the Chair has not suggested that you would like to have from the Secretary ? Senator DOUGLAS. Have you requested the Secretary to furnish these figures The CHAIRMAN. Mr. Secretary, I am taking some of these largest amounts, March 31, of this present year, and June 30, and September 30 of last year, the hundred of the largest banks having these deposits and from that information we can work clown to others. I think it is a matter that we should go into because there is quite a lot of interest involved. Secretary ANDERSON. I would .like, if I may, to have some reasonable flexibility in preparing this statement. For example, I don't see very well how we can do it in any time forward. I t would have to be backward. We would have to do it from a past date. The CHAIRMAN. Yes, I recognize that. You estimate that March 31 you will have $5 billion in cash. Secretary ANDERSON. Those are the estimates but how they would be distributed I do not know. The CHAIRMAN. YOU could not furnish that as against the particular bank ? Secretary ANDERSON. NO. Then again, Senator, take January of 1957, last year, on the 2d day of January there was $2,872 million in deposit in these banks. On the 16th, 14 days later there was $856 million, so that you had had a drop of $2 billion in a 12-day period. So I would think if we were going to try to work out some kind of typical figures 72 DEBT CEILING INCREASE The CHAIRMAN. Well, suppose we say on June 30, 1957, July 15, 1957, and then we will come around to September 30 and December 31. All of the figures are based on the $275 billion limit. Secretary ANDERSON. That is correct. (The information requested is as follows:) High and low balances in certain months and balances on selected dates in Treasury tax and loan accounts in commercial banks [Deposits are not made by the Treasury into the tax and loan accounts. The deposits to the accounts occur in the normal course of business under a uniform procedure applicable to all banks whereby customers of banks deposit with them tax payments and funds for purchase of Government securities. The transactions involve merely the transfer of money from a customer's account to the Government's account in the same bank. On occasions, to the extent authorized by the Treasury, banks are permitted to deposit in these accounts proceeds from subscriptions to public debt securities entered for their own account as well as for account of their customers. The Treasury makes withdrawals on a uniform percentage basis from the tax and loan accounts in these large banks, and proportionately from tax and loan accounts in other banks, for transfer to its operating accounts in the Federal Reserve banks to meet day-to-day disbursements.] [In thousands] Commercial banks with total deposits of $500,000,000 or m o r e for all depositors Date 1957: J u n e 17- _ - _ - - _ J u n e 21 _ ___ June30 July 3 July31 S e p t . 16 S e p t . 27 S e p t . 30 D e c . 13 D e c . 24 D e c . 31 _ ___ _ _. _ __ __. __ __ . _ . _ __ _.. _ . $692, 837 2, 681, 463 2,130, 706 3, 334, 742 1. 051, 870 443, 809 2, 741, 964 2, 708, 633 576, 838 1, 685, 983 1, 220, 726 All o t h e r t a x a n d loan depositaries $1, 357, 448 2, 345,083 1, 951,069 2, 959, 657 1, 780, 987 908, 958 3,144, 438 3,108, 919 1,133, 652 1, 903, 454 1,862, 952 Total $2,050, 285 5,026, 546 4,081, 775 6, 294,399 2, 832, 857 1, 352, 767 5, 886, 402 5, 817, 552 1, 710, 490 3, 589, 437 3,083,678 The CHAIRMAN. NOW you are asking for $5 billion more? Secretary ANDERSON. That is correct. The CHAIRMAN. I t is reasonable to think those balances would be increased ? Secretary ANDERSON. Yes. The CHAIRMAN. I apologize again to Senator Frear. We will go into this matter further. Senator FREAR. N O apologies are necessary, Mr. Chairman. Mr. Secretary, not in defense of the commercial banking fraternity of this country, but I have some sympathy for what you said for what banks do for the Federal Government. I n the little town where we live there is an Air Force base, and I have known several times when the money for the payroll was not available and did not arrive in time and when they called on the local bank to supply the cash, and that came out of their own account. Of course, they recognized the Federal Government ought to be good for it but there were times when they had several days of out-ofpocket money. But they do perform services in selling bonds and paying for bonds, and also collecting the social security and using them as a depositary and we recognize the fact, too, that when they have deposits there they loan some money to get some interest oil. So it is a two-way street. Not only on behalf of the Government or on behalf of the bank. DEBT CEIUING 73 INCREASE I like to be in line with people and like to be up to date and modern. I do not want to be indicted for not living up to the agreement and I would like to ask Mr. Mayo a couple of more requests. If you took the hearings on page 418 of part 1 of the Investigation of the Financial Conditions of the United States, and you used as a basis for your dollar 1939, would it be a great deal of trouble if you used the basis of 1873 and 1913 and put them down just alongside of these columns so that you would have the three corresponding figures and then we could start, as Senator Williams or Senator Byrd has suggested, we know when it is every year the basis on which the dollar is worth, if that is an unreasonable request and takes too much time Mr. MAYO. NO ; we can do it easily. (The information requested is as follows:) Consumer prices and the purchasing power of the dollar, 1873, and 1913-57 C o n s u m - P u r c h a s i n g p o w e r of t h e dollar er prices (194749=100) 1939=$1 1913=$1 1873=$1 C a l e n d a r year averages: 1873 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 _ 1924 1925 -_ 1926 _ 1927 __ 1928 1929 _ 1930_ _ 1931 - _ 1932 1933- __ __ 1934 1935 _. 1936 1937- _ 1938 _ 1939 19401941 _ __. 1942 1943_-1944 1945 1946 1947 1948 1949 _ 1950 1951 1952 _1953 1954 1955 1956 1957 - - - -__ -- - __ -__ _- _ _ - „_ _ —. - 137.0 42.3 42.9 43.4 46. 6 54. 8 64.3 74.0 85.7 76.4 71.6 72.9 73.1 75.0 75.6 74.2 73.3 73.3 71.4 65.0 58.4 55.3 57.2 58.7 59.3 61.4 60.3 59.4 59.9 62.9 69.7 74.0 75.2 76.9 83.4 95.5 102.8 101.8 102.8 111.0 113.5 114.4 114.8 114.5 116.2 120.2 $1. 605 1.404 1.385 1.368 1.274 1.083 .924 .803 .693 .778 .830 .815 .812 .792 .786 .801 .810 .810 .832 .914 1.017 1.074 1.038 1.012 1.002 .967 .985 1.000 .992 .944 .852 .803 .790 .772 .712 .622 .578 .583 .578 .535 .523 .519 .517 .519 .511 .494 $1.143 1.000 .986 .975 .908 .772 .658 .572 .494 .554 .591 .580 .579 .564 .560 .570 .577 .577 .592 .651 .724 .765 .740 .721 .713 .689 .701 .712 .706 .672 .607 .572 .562 .550 .507 .443 .411 .416 .411 .381 .373 .370 .368 .369 .364 .352 $1.000 .875 .862 .853 .794 675 .575 .500 .432 .484 .517 .508 .506 .493 .489 .499 505 . 505 518 569 634 .669 .647 . 630 .624 .603 .614 .623 .618 .588 .531 .500 .492 .481 .444 .387 .360 .363 .360 .333 .326 .323 .322 .323 .318 .308 1 Based on a series published by the Federal Reserve Bank of New York and converted to base 1947-49= 100 by U. S. Bureau of Labor Statistics. Source: Department of Labor and derived computations. 74 DEBT CEILING INCREASE Senator FREAR. Put that down at the bottom of your list. We are talking about additional authorized for Export-Import Bank for just a while this morning Mr. Secretary, and I believe there is a request in for additional lending authority for $2 billion, and if that is granted, how will that affect your debt ? Secretary ANDERSON. I don't think that the immediate effect on the budget will be adverse, that is because these will be commitments which will be made, but until the money is actually drawn there is usually quite a lapse of time even though the authority is there. Senator FREAR. But it is contingent ? Secretary ANDERSON. Yes; sooner or later. Senator FREAR. And you have to take it into account in your debt ceiling ? Secretary ANDERSON. Yes. The CHAIRMAN. What agency is that, Senator ? Secretary ANDERSON. The Export-Import Bank. Senator FREAR. Export-Import Bank. I know you are going to be called upon to increase their borrowing authority by $2 billion. Secretary ANDERSON. That is correct. Senator FREAR. Just suppose now, Mr. Secretary, that such a thing might happen that your request for increasing the debt ceiling did not find the affirmative action in Congress, what would be your alternative? Secretary ANDERSON. Well, if there was no increase, if we remained at $275 billion, and the revenues were down, and the expenditures were up for any purpose, we would, of course, have to first utilize the free gold which we have, $500 million, and we would as we have done in the past, sell some securities in the market, such as the F N M A securities, which normally the Treasury would hold, would sell those The CHAIRMAN. H O W many of those have you got and how many Secretary ANDERSON. We have exhausted those now. The CHAIRMAN. The FNMA's. Now those issued after 1954 do not go through the banks; do they ? Secretary ANDERSON. By F N M A ? The CHAIRMAN. Under the debt ceiling. Secretary ANDERSON. Those that are currently bought by F N M A ? They accumulate them up to a certain amount, say one or two hundred million dollars. Then they go into the market and sell their own securities and pay us off. But we have to carry them until they get to that point on their secondary mortgage purchases. The eight hundred-odd million dollars referred to this morning is in the management and liquidation account, and this is simply a question of do we hold the FNMA's notes, which are financed under the debt limit, or do they sell securities in the market \ So that it is not a matter of budget concern, it is a matter of who holds the debt. Senator WILLIAMS. Might I ask a question I Plow many more of those do you have now ? Secretary ANDERSON. I think we have exhausted those. Just about at the exhaustion point. DEBT CEILING INCREASE 75 Then of course if we utilize the gold, and the anticipations were such that we were going to have difficulties, we would simply have to ask the Congress at that time to increase our borrowing authority. Senator FREAR. Well, this is probably hypothetical, but suppose they did not increase it, even when you come down here in an emergency and do not increase it, what alternative would you have then ? Secretary ANDERSON. YOU simply could not write the checks. Senator FREAR. YOU could not pay your bill, that is right. Senator FREAR. YOU are in default and in the eyes of the foreign nations you probably would be in bankruptcy? Secretary ANDERSON. Yes; even in the eyes of the American customer who did not get his check paid. Senator FREAR. I just wanted to go further and say regardless of in the eyes of the foreign nations when we got down to some mail carrier who did not get his check or some civil servant who did not get his check, I think it wTould be closer to home than that. I can assure you, Mr. Secretary, I am not looking forward to any condition like that happening but I share what the chairman has said in his desire to maintain that debt ceiling sort of as a regulatory instrument that we do not obligate ourselves more than we can take in or more than our revenues, and expenditures are limited to our revenues except under certain particular instances, and in those times, I really believe that the Congress should be the authority which should say whether we would spend this money or whether we would not. Xow I rocognize, too, that I think you people downtown can tell us a thing or two about the way we appropriate money up here. After we appropriate it, why, of course there are no strings, you can go ahead and spend it. So maybe there are a few things we ought to get into a huddle on ourselves up here and dictate a few things around the table and say if we are a little more considerate in how we authorize the expenditures of money your problems may be a little less difficult. I thank you for your testimony, and I appreciate it, and I, along with the rest of the members of this committee, I think, Mr. Secretary, have great faith and confidence in you. Secretary ANDERSON. Thank you, sir. Senator FREAR. Even though good men, including you and myself, may have differences of opinion, we still have something in common. Secretary ANDERSON. Absolutely, sir. The CHAIRMAN. Senator Flanders? Senator FLANDERS. Mr. Secretary, I had in my mind some questions along the same line as Senator Frear, but we have been telling ourselves for the years I have been on this committee that we ought to have this limit on the debt, the debt ceiling, rather closely held so as to keep us from "going haywire." I ain wondering on whom the effect of the closely calculated debt limit is expected to fall. Primarily, it would seem to me that those who should take warning that we are approaching the debt limit would be Senators and Kepresentatives, but I never heard—I was never sure—that the approaching disappearance of the margin was ever having much effect on appropriations or legislation in general, and probably we are the ones who should most take warning from the approach to the debt limit. 76 DEBT CEILING INCREASE The second—and here is perhaps where we have a right to expect it to be observed—the second would be the administration in making up its budget and its requests for appropriations. Mr. Chairman, to what extent have you seen any evidences on the part of any administration—Democratic, Eepublican, present, past, or future—that the debt limit was a deciding element in the request for appropriations ? The CHAIRMAN. I have not observed that, but I would say, however, that the unexpended balances, $70 billion of unexpended balances, cannot be spent unless it is within the debt limit. Senator FLANDERS. That is one place where it has its effect. And then when the unfortunate Secretary of Defense or the Secretary of the Army, the Navy, or the Air Force, comes up and we hear that this money has not been spent, then the unfortunate Secretaries are landed on like a ton of bricks, because the intentions of Congress in appropriating this money have not been carried out, and "Why didn't you do i t ? " And so they go on the griddle. And last, we come down, sir. to you. I have aways been interested in the atmosphere that normally, let us say, permeates the hearings when any responsible officer of the Government is before any committee, whether the House or the Senate, under Democratic or Republican chairmen, that he is on the griddle. Sometimes the temperature is comparatively mild, and he is merely being seared; and sometimes he is being "frizzled." But the question arises in my mind as to—I would follow along in my thoughts the same line that Senator Frear pursued: W h a t can you do about it? Are you anything but a helpless pawn on a chessboard where the moves are being made by others? What can you do about it? Secretary ANDERSON. Well, Senator, if someone presents us with the bill, the only thinoj we can do is pay it, and to pay it as long as there is money wTith which to pay it. Now, it is a part of my responsibility to keep my colleagues in the Government advised as to how near we are to the debt limit, so that those agencies which have a more direct control over their expenditures will make their plans with an awareness of this tight situation. If, however, we got to a position where there was not an adequate amount of cash on hand and if I had no borrowing authority under the public debt limit to borrow, my recourse would be to come back to this committee and say, "Gentlemen, this is the position we are in, and in order to maintain the full faith and credit of the country, which is our primary consideration, we must have some more borrowing authority." Senator FLANDERS. Well, that, I think, is a fair statement of the position that you would be in. Under those circumstances, T would not be inclined to put the heat on you for coming back, provided you had done all these other things that are possible. Now, I picked up some words from your verbal testimony this morning. You asked for a reasonable flexibility for a much better job for the country. I have not heard all the testimony, but I was wanting to interpret that in terms of, say, a much better job for the country, that is, general, and in terms of saving money. DEBT CEILING INCREASE 77 And if I have understood what you have said in answer to Senator Williams and to Senator Frear, and others, you really feel that you could, both from the long-run task of placing long-term bonds and the short-run task of getting, immediately getting, better interest rates, save money if you had more leeway so that you could place the securities in the market at the most favorable time, and not have your hand forced. That is what you have been saying, is it not ? Secretary ANDERSON. With one additional factor, and that is that when market opportunities present themselves, to put some of the debt in longer term securities. Senator FLANDERS. Yes. Secretary ANDERSON. I n order to secure a better balance. Senator FLANDERS. Yes. Secretary ANDERSON. YOU would be in a position to better market those securities without fearing that you would have an attrition so high that you would either not be in a position to pay off the bonds, or if you did pay them off while you were still distributing the longterm bonds in the market, we would be going right back into the market to take shorter term maturities, thereby competing with the very people whom we have tried to sell the long-term bonds to. Senator FLANDERS. I think that is clear. Now, Mr. Chairman, I missed the description of this sheet here which you distributed to us this morning, and I am wandering what the difference is between the last column on table 3 here, and the middle column of this sheet which you have distributed. W h a t is the difference? The CHAIRMAN. The first difference is that the gold is not included. Senator FLANDERS. That is $500 million. Secretary ANDERSON. That is right. The CHAIRMAN. $500 million. And then, Mr. Anderson thinks it should be $3.5 billion minimum on hand. My figures provides for $3 billion minimum. Senator FLANDERS. That adds up to $1 billion difference. The CHAIRMAN. The other difference is that the limit I propose would be $278 billion instead of $280 billion. The righthand column shows the amount of leeway under the $278 billion limit, including the $3 billion cash balance and using the gold, and unused debt authority. And you will note, for instance, in April they will have, April 15, $11 billion; and June 30 is $12 billion. Now, there are some low points. The lowest point is approximately $5 billion in the next 18 months, and I am using as a base the figures which came from the Treasury. I think Secretary Anderson, will—I asked him this morning to confirm whether or not these figures were based upon Treasury figures with the changes that I have mentioned. Secretary ANDERSON. I am sure they are, sir. I frankly have not been able to study them. The CHAIRMAN. I am sure they are. I had them very carefully prepared. I do not want to argue the case right nowT. Senator FLANDERS. Mr. Chairman, I have not heard the discussion—unfortunately, I have not been able to be here all the time— 78 DEBT CEILING INCREASE I have not heard in the discussion any judgment given by the Secretary as to the advantages or the dangers of reckoning in or more drastically using our gold reserve in determining the debt limit. If that has been done, I missed it, either by absence or lack of comprehension. Secretary ANDERSON. Senator Byrd asked me this morning, sir, if I could see any reason of substance why we should not utilize the gold. This is an amount of gold which was acquired originally when the value of the gold dollar was changed in 1934. At that time we had about $2.8 billion as an increment in the change in the value. That gold has been utilized to supply money to the Exchange stabilization fund and to the International Monetary F u n d ; and in November of 1953, when there was one of these tight periods, $500 million of gold remaining in the general fund was used. I stated to Senator Byrd that I had no objection of substance to utilizing the gold. I t is an additional amount of money that we can always utilize when circumstances require. And if we had gotten into tighter periods or if we get into tighter periods, this is one of the things we always keep in the back of our mind, you can always sell this much gold and utilize it. The CHAIRMAN. YOU would use it if you need it. Secretary ANDERSON. Yes. The CHAIRMAN. But }Tou regard it as a cash quick asset, that is the point I made. Secretary ANDERSON. I t is the point The CHAIRMAN. That is the point I made, that he could use it at any time and get the $500 million. Secretary ANDERSON. You could issue a gold certificate to the Federal Reserve and, of course, they would deposit the amount to your account, The gold would still be part of the Nation's gold stock. Senator FLANDERS. If these things can be done, they still raise the question in my mind as to what the practical effect of a close margin is. Will it affect Senators? Will it affect appropriation demands from the administration? Will it affect the use of appropriations? Just what way does the tight ceiling work 1 What is the machinery, what is the mechanism? And I think perhaps, since the chairman and I have hitherto always been of one mind in that matter, and I presume I still am, that I ask for a little speech from the chairman on that subject instead of asking you. Secretary ANDERSON. All right, sir. Senator FLANDERS. But I have begun to wonder about when you have a responsible Treasurer, not Treasury, but a responsible Secretary of the Treasury, and I think we have had, both in you and your predecessor, what does the tight ceiling do for the country and to you ? That is the basic question. And the question is whether that is to be in the form of a speech from the Senator or of a brief from the Secretary of the Treasury. Maybe we have been getting the answers here today, but I am not so sure about the practical effectiveness of the tight ceiling as I have been in years past when I tried to figure out logically just how it works. I just will go on to one more point I wanted to raise, and this is in a way on the sideline, but it has been brought u p : We have here on DEBT CEILIING INCREASE 79 this page 418 of the investigative hearings consumer prices and the pur€hasing power of the dollar, 1913 to date. And of course the consumer prices as they are worked out by the Bureau of Labor Statistics are the standard way of measuring the purchasing power of the dollar. It measures it in consumers' terms, and that is where it hurts, and the basis of that calculation changes every few years. I believe they have automobiles in it now, and they certainly did not have automobiles in it back in 1873, about which we have been talking. Perhaps, Mr. Chairman, I might ask our own expert, Mr. Mayo, whether there is anything in that continuously changing composition of the basis for the purchasing power of the dollar which invalidates the relationships, say, between 1873 and 1956, just to use the 2 extremes, 1957 or 1958, the 2 extremes we have been talking about. Mr. MAYO. Well, I would not pretend to be an expert on the cost of living index going all the way back to 1873, but I do know that prior to 1913 the only figures that are available are not Government figures. They are figures that have been prepared in connection with various private studies which have been made for specific purposes. They were based on such figures as were available in the public press, on the price of pork, the price of a restaurant meal, and odd bits of information which are in no way standardized. Therefore, I think the point is well raised as to the difficulty of making a statistical comparison back into the 19th century when your figures are on a rather tenuous base. Senator FLANDERS. Mr. Chairman, there are at least two of us here who once were not in the Senate—I am one of them, the other is Senator Douglas. When neither of us were in the Senate, many years ago, I was much intrigued by a book on prices written by Doug] as and Director. Do you remember that book % Senator DOUGLAS. Yes, very well. Senator FLANDERS. SO that I sit here with the presupposition that Senator Douglas is also an authority, and may I have permission to catechize a member of the committee as to that question I have just been asking as to the comparability of prices over that long range? Sentaor DOUGLAS. I will be very glad to try to answer such questions, but I would remind you of the rule that the farther you are from, the brighter you are, and I am very close at hand and therefore I cannot be regarded as an expert. Senator FLANDERS. I, sir, having been foiled and completely defeated in my endeavors, will cease asking questions. The CHAIRMAN. The hour is getting late, and I do not assume we can finish this afternoon. Senator Long, do you desire to go ahead ? Senator LONG. I have only about 1 question or 2, Mr. Chairman. Mr. Secretary, in regard to the question Senator Anderson asked, it seems to me the answer lies in greater unification of the services. What, if anything, can you do about that as one of the President's Cabinet ? Secretary ANDEBSON. Well, this is certainly not one of my primary responsibilities, and I think I could do nothing, except opinions might be asked from time to time, and there have been none asked up to this point. 80 DEBT CELLING INCREASE Senator LONG. I assume there are some discussions of economy in the military when the Cabinet meets from time to time. Secretary ANDERSON. That is right. Senator LONG. YOU were formerly Secretary of the Navy, and you know something about those problems. Secretary ANDERSON. Yes. Senator LONG. Have you expressed an opinion on those matters from time to time ? Secretary ANDERSON. Oh, yes. All such matters, Senator, whether they relate to expenditures of the Defense Department or other departments, are reviewed in the light of what will be the impact on the country, on industries, on our tax collections, upon other programs, how much of our total money will be utilized in their programs, this sort of thing. Senator LONG. YOU personally feel we could make considerable economies if we can force upon the services greater unification in the research and development of their new weapons ? Secretary ANDERSON. Without trying to impose my judgment on the military department, I would think that any organization which was as large, as widespread as that organization can constantly be improved by people who are working at it so that you do have tighter controls, more sharing of information, better utilization of common facilities, and that sort of thing. Secretary LONG. One thing that concerns me very much about our fiscal picture is that we are going to have to continue to maintain a rate of economic growth if we are going to continue to have a balanced budget, based on our present tax structure. Do these figures you have presented to us include the assumption that the economy will continue to expand ? Secretary ANDERSON. These figures are based upon the same judgments which went into our calculations of what the revenues would be for the fiscal year ending 1959, which would be a $2 billion expansion. Senator LONG. Eight now, the economy is in something of a downturn or a moderate slump. Do you have any further thoughts about the predictions that this economy will recover from that slump during the next 2 or 3 months and again increase in production of income ? Secretary ANDERSON. I think this morning, before you were here, Senator Long, I went over with Senator Byrd the number of factors which had gone into our judgment in giving rise to a belief that there would be an upturn in our economy. I have not tried to pinpoint precisely the time or month in which it would take place. But without reviewing those matters which went into the record earlier this morning, I do believe that the economy will reassert itself. Senator LONG. D O you feel that a general reduction in the level of interest rates would tend to increase construction and increase economic activity ? Secretary ANDERSON. Of course, the rate at which you can borrow money, and the availability of the credit, they are both important factors in construction as well as other capital investments. DEBT CEILING INCREASE 81 I think, however, if you look at the decline in the interest rates which have taken place since last October 14, it has been a very significant decline; in fact, almost a dramatic decline. Senator LONG. I t would seem to me that insofar as it has declined, it probably has helped to retard what otherwise would have been a more abrupt slump in the economy now. I personally know of groups who explained to me that the reason they are calling off their expansion plans is because they felt the cost of interest money was too high, and so that contributed to the slump. You are, are you not, about the principal Cabinet member who would be looked to to advise the President with regard to this interestrate problem ? Secretary ANDERSON. I would think perhaps as much as anyone else in the Cabinet. He would also counsel with the Council of Economic Advisers and others. But this is the sort of thing, Senator Long, that we discuss on an informative and exchange-of-information basis in the arrangements which now exist for meetings between the President, myself, the Chairman of the Federal Reserve Board, the Chairman of the Council of Economic Advisers, so that each of us in the performance of our separate responsibilities will have the thinking and the collective judgment and the weighing of the effect of the statistical charts which all of us have available to us. Senator LONG. Do you—I am not sure I got the answer I wanted to the question, at least that I got a direct answer to the question. Do you feel that a further reduction in the general level of interest rates would contribute to economic growth at this time ? Secretary ANDERSON. Let me put it this way: I think any reductions in the cost of money and increases in the availability of money contribute to the willingness of people normally to make investments, if other circumstances of the economy are such as to make them believe they are worth while. Senator LONG. DO you see any reason why those factors would not react in just such same fashion as that at the present time? Secretary ANDERSON. I would think they would so react. Senator LONG. Thank you very much. That is all, Mr. Chairman. The CHAIRMAN. The committee will adjourn until 10 o'clock tomorrow morning. Senator DOUGLAS. May I, before we adjourn, ask the Secretary a question ? The CHAIRMAN. Yes, sir. Senator DOUGLAS. At this time I would apologize, both to the chairman and the Secretary, for not being here earlier in the day, and to assure them it was not intended to be a discourtesy to him but simply because of other committee meetings. What I would like, Mr. Chairman, if I may ask the Secretary, is a list of all Federal programs which lend, spend, or grant funds which are not included under the present debt limitation. As I understand if there are various borrowings of organizations owned by the Government which are not included under the formal debt limit, and I would like to mention a few, and I am not at all certain that they are all-inclusive: 82 DEBT CEILING INCREASE First, military housing under the so-called Capehart program. Second, the lease-purchase agreements which are a method of avoiding the appropriations process, and provide for public buildings and facilities. Third, the highway program. Fourth, the United States share of the St. Lawrence seaway expenses. Fifth, the obligations of the Commodity Credit Corporation. Sixth, F N M A sales of securities to the public. Now, there may be others, but what I am trying to get at primarily is that I believe we should have a complete list of those activities, the extent to which commitments have already been made and in which future commitments are likely to be made, and the rates of interest which are paid on these. I think we should have these because in many cases when you remove a program from the debt ceiling you have to pay an interest rate which is in excess of what the interest rate would be on direct Federal borrowing, and this may not be the best policy for the Federal Government to pursue. What I am trying to get at is that we should know the true nature of the Federal debt and the extent to which the present administration has avoided increases in the debt limitation by other methods of borrowing, which turn out to be more costly to the taxpayer. I wondered, Mr. Secretary, if you could furnish us with this information. Secretary ANDERSON. Yes; I can. Senator DOUGLAS. Personally, I would like to have it before 1 am finally to vote on the question of increasing the debt limit itself. Secretary ANDERSON. Yes; we will try. The CHAIRMAN. D O you understand clearly what Senator Douglas wants ? Secretary ANDERSON. I was explaining to the chairman that we are preparing for a financing which will take place which will occupy my time tomorrow morning, and that I am then scheduled to go down to New Orleans on Tuesday afternoon and to make two speeches, which wxould not bring me back this week. So, I was wondering if there would be a way of my either getting through early in the morning or later this afternoon and furnishing some additional information. If there is not, of course, I will accommodate myself to the wishes of the committee. (The material referred to follows:) J A N U A R Y 30. Hon. 1958. P A U L H. DOUGLAS, United States Senate, Senate Office Building, Washington, D. C. M Y DEAR SENATOR : I am replying for Secretary Anderson to the request you m a d e in the debt-limit hearings Monday afternoon for "a list of all F e d e r a l p r o g r a m s which lend, spend, or g r a n t funds which a r e not included under t h e present debt limitation." As you know, practically all of t h e operations of t h e United States Government—including budgetary a s well as trust-fund operations—are reflected in t h e public debt of the United States or, to a very minor extent, in debt obligations g u a r a n t e e d by the United States. These public-debt and guaranteed obligations totaled $275,002 million on December 31, 1957, ($274,564 million subject to t h e s t a t u t o r y limit and $438 million not subject to the l i m i t ) . In addition, t h e r e w e r e $6,221 million of securities and issued by F e d e r a l Government agencies which a r e not guaranteed by the United States Government on the same date, a s listed in the a t t a c h e d table. 83 DEBT CEIUENG INCREASE In addition to these two categories, there is a t h i r d category which may be called t h e long-range commitments a n d contingencies of t h e United S t a t e s Government. A copy of t h e regularly prepared T r e a s u r y s t a t e m e n t on this subject, a s of J u n e 30, 1957, is also enclosed with this letter. To t h e extent t h a t any of t h i s l a t t e r group of items actually result in cash disbursement by t h e F e d e r a l Government it would be reflected directly in budget expenditures a n d therefore in t h e public debt or guaranteed obligations. In t h e discussion t h e other day, you mentioned specifically six items which occurred to you a s examples of borrowings t h a t were outside of t h e debt limit. Your first item w a s military housing mortgages, which a r e initially obligations of t h e Department of Defense. These mortgages a r e also insured by t h e F e d e r a l Housing Administration, a n d are, therefore, included in t h e list of long-range commitments a n d contingencies. To t h e extent t h a t any of these mortgages a r e purchased by t h e Federal National Mortgage Association in i t s special-assistance program, they a r e paid for out of FNMA funds which a r e reflected a s p a r t of budget expenditures and therefore in t h e public debt. As of J a n u a r y 25, 1958, FNMA h a d purchased $13 million of military housing mortgages a n d h a d approximately $400 million in outstanding commitments. By comparison, purchases and commitments for military housing mortgages outstanding by private financial sources totaled $147 million. Lease-purchase contracts involve long-range commitments by t h e General Services Administration a n d t h e Post Office Department. T h e program, however, is still very small. As of December 31, 1957, only 1 contract for $1.7 million h a d been completed by GSA, and 4 by t h e Post Office Department, totaling $0.5 million. By J u n e 1959, GSA expects to have 76 buildings, costing some $297 million, u n d e r purchase contract on which the future a n n u a l payments for principal and interest during t h e contract period will amount to $23 million. The highway program h a s been operating a t a surplus a n d t h e surplus funds h a v e been invested in special issues of Government securities which a r e p a r t of t h e public debt. If in t h e future, t h e highway fund should ever need to exercise its s t a t u t o r y a u t h o r i t y to borrowT temporarily from t h e Secretary of t h e Treasury, t h e T r e a s u r y would be called on a t t h a t time to provide funds which i t in t u r n would borrow a s p a r t of t h e public debt. The United States' s h a r e of t h e cost of t h e St. Lawrence seaway is being financed by St. Lawrence Seaway Development Corporation borrowing directly from t h e United States T r e a s u r y ($83 million outstanding on December 31, 1957) so t h a t this is already reflected in the public debt. This is also t r u e in regard t o t h e expenditures of t h e Commodity Credit Corporation, which currently owes t h e T r e a s u r y almost $13 billion, money which the T r e a s u r y in t u r n h a s h a d to borrow directly. I n addition, t h e Commodity Credit Corporation h a s a n obligation to purchase approximately $250 million of loans to f a r m e r s from commercial banks which will not be reflected in t h e public debt until such time a s Commodity Credit Corporation is actually required t o t a k e over such loans. I hope t h a t t h e m a t e r i a l which we a r e providing you with this letter will be sufficient to answer your inquiry satisfactorily. Sincerely yours, J U L I A N B. BAIRD, Under DeM of Federal Government agencies not guaranteed as to principal by the United States, Dec. 31,1957 Federal home loan b a n k s 1 Federal land b a n k s 1 Federal intermediate credit b a n k s 2 B a n k s for cooperatives 2 F e d e r a l National Mortgage Association : Secondary m a r k e t o p e r a t i o n 2 Management a n d liquidation 3 Total, nonguaranteed agency debt 1 2 3 U. S. Government capital investment wholly repaid. P a r t i a l l y owned by TJ. S. Government. Wholly owned by U. S. Government. Source : Office of t h e Secretary of t h e T r e a s u r y . Secretary. and interest Millions $826 1,599 886 222 1,315 1,372 6, 221 84 DEBT CEILING INCREASE LONG-RANGE COMMITMENTS AND CONTINGENCIES OF T H E U N I T E D STATES GOVERNMENT AS OF J U N E 30, 1957 T h e attached statement covers the major financial commitments of the United States Government, except the public debt outstanding and those involving r e c u r r i n g costs for which funds a r e regularly appropriated by the Congress and a r e not yet obligated, such a s aid to States for welfare programs and participation in employee-retirement systems. The statement is segregated into four categories, namely ( a ) loans guaranteed and insured by Government agencies, (6) insurance in force, (c) obligations issued on credit of the United States, and (d) undisbursed commitments, etc. T h e items appearing in this statement are quite different from t h e direct debt of t h e United States. They a r e programs of a long-range n a t u r e t h a t m a y or may not commit the Government to expend funds at a future time. T h e e x t e n t to which the Government m a y be called upon to meet these commitments varies widely. T h e liability of the Government and the u l t i m a t e disbursements to be m a d e a r e of a contingent n a t u r e and a r e dependent upon a variety of factors, including t h e n a t u r e of and value of t h e assets held as a reserve a g a i n s t t h e commitments, t h e trend of prices and employment, and other economic factors. Caution should be exercised in any attempt to combine t h e amounts in t h e s t a t e m e n t w i t h the public debt outstanding, for t h a t would involve not only duplication, but would be combining things which a r e quite dissimilar. As indicated by the enclosed statement, there a r e $98.1 billion of public-debt securities held by Government and other agencies as p a r t of the assets t h a t would be available to meet future losses. T h e following examples illustrate the need for extreme caution in using d a t a on the contingencies and other commitments of t h e United States Government. 1. T h e F e d e r a l Deposit I n s u r a n c e Corporation had insurance outstanding as of J u n e 6, 1957, amounting to $119 billion. The experience of the F e d e r a l Deposit I n s u r a n c e Corporation h a s been most favorable. D u r i n g t h e period this Corporation h a s been in existence, premiums and other income h a v e substantially exceeded losses, which h a s permitted the retirement of T r e a s u r y and F e d e r a l Reserve capital amounting to $289.3 million (all repaid to T r e a s u r y ) , and the accumulation of $1.8 billion reserve as of J u n e 30, 1957. T h e Corporation's holdings of public-debt securities as of t h a t date amounted to $1.9 billion, which a l r e a d y appears in the public-debt total. Out of $233.4 billion of assets in insured b a n k s as of J u n e 6, 1957, $61.6 billion a r e in public-debt securities (also reflected in the public d e b t ) . The assets, both of insured banks and t h e Federal Deposit I n s u r a n c e Corporation, as well as the continued income of t h e Corporation from assessments and other sources, stand between insured deposits and the Government's obligation to redeem them. 2. T h e face value of life insurance policies issued to veterans and in force a s of J u n e 30, 1957, amounted to $44.2 billion. This does not represent t h e Government's potential liabilities under these programs since some of these policies will probably be permitted to lapse and future premiums, interest, and t h e invested reserves amounting to $6.8 billion of public-debt securities should cover the normal mortality risk. 3. Under the F e d e r a l Reserve Act of 1913, as amended, F e d e r a l Reserve notes a r e obligations of the United States which as of J u n e 30, 1957, amounted to $25.8 billion. The full faith and credit of the United States is behind the F e d e r a l Reserve currency. These notes a r e a first lien against the $51.4 billion of assets of the issuing Federal Reserve banks which includes $23 billion of Government securities already included in the public debt. These notes a r e specifically secured by collateral deposited with t h e F e d e r a l Reserve agents which, as of J u n e 30, 1957, amounted to $16.9 billion in Government securities a n d $11.8 billion in gold certificates. 85 DEBT CEIMNiG INCREASE Long-range commitments and contingencies of the United as of June 30,1951 [In millions of dollars] C o m m i t m e n t or contingency a n d agency L o a n s g u a r a n t e e d or insured b y G o v e r n m e n t agencies: Agriculture D e p a r t m e n t : Commodity Credit Corporation __ ._ - F a r m e r s ' H o m e A d m i n i s t r a t i o n : F a r m t e n a n t mortgage insurance fund _ _ _ _C o m m e r c e D e p a r t m e n t : F e d e r a l M a r i t i m e B o a r d a n d M a r i t i m e Administration _ . E x p o r t - I m p o r t B a n k of W a s h i n g t o n , . _ H o u s i n g a n d H o m e F i n a n c e Agency: Federal H o u s i n g A d m i n i s t r a t i o n : P r o p e r t y i m p r o v e m e n t loans __ M o r t g a g e loans _ __ _ _ . - _ _ _ _ Office of t h e A d m i n i s t r a t o r : U r b a n renewal fund Public Housing Administration _ _ _ _ __ I n t e r n a t i o n a l Cooperation A d m i n i s t r a t i o n : I n d u s t r i a l guaranties 5 Small Business A d m i n i s t r a t i o n _ ... Treasury Department: R e c o n s t r u c t i o n F i n a n c e C o r p o r a t i o n (in liquidation) __ Defense P r o d u c t i o n A c t of 1950, as a m e n d e d _ _ IT. S. Information Agency: Informational media g u a r a n t i e s _._ _ _ __ _ Veterans' Administration _ __ Defense P r o d u c t i o n Act of 1950, as a m e n d e d _ _ T o t a l loans g u a r a n t e e d or insured b v G o v e r n m e n t agencies T o t a l insurance in force _. . _ _ ___ __ T o t a l postal savings certificates __ _ _ O t h e r obligations: F e d e r a l R e s e r v e notes (face a m o u n t ) T o t a l u n d i s b u r s e d c o m m i t m e n t s to m a k e f u t u r e loans Gross a m o u n t of commitment or contingency Public debt securities held b y Government and other agencies 1360 2 158 36 25 4 282 20, 022 108 2,891 118 6 __ . -- (3) 56 429 67 6 18 10 16, 782 307 ?252 3 8118, 931 485 1,919 s 61, 578 36, 704 275 2,904 42, 594 1,608 5,604 1,200 200,092 73, 480 e _____ _. U n d i s b u r s e d c o m m i t m e n t s , etc.: T o m a k e future loans: Agriculture D e p a r t m e n t : Commodity Credit Corporation _ _ _ D i s a s t e r loans, etc., revolving f u n d . _ _ _ _ ______ F a r m e r s ' H o m e Administration: Loan programs ._ R u r a l Electrification A d m i n i s t r a t i o n . . _ _ Defense D e p a r t m e n t : L o a n to P e r u 5_ E x p o r t - I m p o r t B a n k of W a s h i n g t o n : R e g u l a r lending activities H o u s i n g a n d H o m e F i n a n c e Agency: Office of t h e A d m i n i s t r a t o r : College housing loans _ ___ _ _ Liquidating programs _ _ _ __ P u b l i c facility loans__ . __ U r b a n r e n e w a l fund _ __ Public Housing Administration _ _ __ _ _ _ Interior Department: B u r e a u of C o m m e r c i a l Fisheries: Fisheries loan fund_ . __ _ _ Defense M i n e r a l s E x p l o r a t i o n A d m i n i s t r a t i o n : Defense P r o d u c t i o n A c t of 1950, as a m e n d e d . . . __ _ I n t e r n a t i o n a l Cooperation A d m i n i s t r a t i o n : L o a n s to foreign countries 5 _ __ _ _ _ _ _ _ ___ S m a l l Business A d m i n i s t r a t i o n . . ___ _ Treasury Department: R e c o n s t r u c t i o n F i n a n c e Corporation (in liquidation) Defense P r o d u c t i o n A c t of 1950, as a m e n d e d . . ... F e d e r a l C i v i l Defense A c t of 1950, as a m e n d e d . . . __ ___ V e t e r a n s ' A d m i n i s t r a t i o n ( v e t e r a n s ' direct loan p r o g r a m ) footnotes at end of tablet Government 41,130 I n s u r a n c e in force: Agriculture Denartment: Federal Crop Insurance Corporation., _ _ E x p o r t - I m p o r t B a n k of W a s h i n g t o n _. _ _ _ _ _ _ . . . _ __ _ F e d e r a l D e p o s i t I n s u r a n c e Corporation _ _ _ _ _ _ H e l d b y insured commercial a n d m u t u a l savings b a n k s _ Federal H o m e L o a n B a n k B o a r d : Federal Savings a n d L o a n I n s u r a n c e C o r p o r a t i o n . . __ __ H e l d b y insured i n s t i t u t i o n s __ _. .. Veterans' Administration: N a t i o n a l service life i n s u r a n c e _ ._. _ U n i t e d States G o v e r n m e n t life i n s u r a n c e . ___ __. Obligations issued on credit of t h e U n i t e d States: P o s t a l savings certificates: U n i t e d States P o s t a l Savings S y s t e m C a n a l Zone P o s t a l Savings S y s t e m States 1,462 »6 1,459 7 1, 488 25,837 1,466 i° 23,035 1 1 27 760 2 1,536 (3) 199 11 161 245 2 6 985 52 2 6 3 35 4,034 86 DEBT CEILING Long-range commitments INCREASE and contingencies of the United as of June 30, 1951—Continued States Government Gross amount of commitment or contingency • Public debt j securities j held by < Government ! and other | agencies fin millions of dollars] Commitment or contingency and agency Undisbursed commitments, etc.—Continued To purchase mortgages: Agriculture Department, Farmers' Home Administration, Farm tenant mortgage insurance fund. _ Housing and Home Finance Agency, Federal National Mortgage Association: Management and liquidating functions Secondary market operations. _ _ ..._ . Special assistance functions._- _ _ _ . . _ _ __ . (3) j 3 () ! 201 i 336 ! 537 ! To guarantee and insure loans: Agriculture Department, Farmers' Home Administration, Farm Commerce Department, Federal Maritime Board and Maritime Administration ___ __ Housing and Home Finance Agency, Federal Housing Administration _ - _ _ . _ _ . . _ Defense Production Act of 1950, as amended.. - _ _ _ _ _ - _ Unpaid subscriptions: International Bank for Reconstruction and Development, .- _-_ .-- _- --- --- 6 35 ; 3,434 ; 99 3 574 ' 2. 540 i 1 The Corporation finances part of its activities by issuing certificates of interest to private lending agencies. The outstanding amount of $86 million as of June 30, 1957, is included in this figure. 2 Includes accrued interest of $2 million. s4 Less than $500,000. Represents the administration's portion of insurance liability. The estimated amount of insurance in force and loan reports in process as of June 30, 1957, is $1,061 million. Insurance on loans shall not exceed 105percent of the total amount of such loans. The Export-Import Bank of Washington acts as agent in carrying out this program. 6 Includes loans sold subject to repurchase agreements and deferred participation agreements. 7 Represents estimated insurance coverage for the 1957 crop year. s Figures are as of June 6, 1957. 9 Excludes accrued interest. 10 Includes public debt securities amounting to $16,905 million that have been deposited with the Federal Reserve agents as specific collateral. NOTE.—The above figures are subject to the limitations and precautionary remarks, as explained in the note attached to this statement. The CHAIRMAN. Senator Malone lias some rather extended questions, I think, judging by the number of books he had there. So he left with the assurance that he would be the first one to examine you tomorrow. Senator BENNETT. How many other witnesses are we going to hear, Sir. Chairman ? The CHAIRMAN. The only other one I know of is the Budget Director. Senator LONG. Is it possible, Mr. Chairman, to notify Senator Malone that the committee plans to stay in session somewhat longer to accommodate him ? ^ I recall on the trade hearings I sat with Senator Malone until midnight. The CHAIRMAN. Would there be any harm clone if it was not acted upon until next Monday ? Secretary ANDERSON. NO, sir: I do not think so. (Off the record.) The CHAIRMAN. We will meet at 0 o'clock in the morning. Senator BENNETT. May I dispose of mine tonight, Mr. Chairman ? DEBT CEILING INCREASE 87 The CHAIRMAN. Senator Bennett. Senator BENNETT. I am sure by this time everything is in the record, but perhaps I can clarify 1 or 2 things. Earlier this morning, the adequacy of your estimates of income and expenses was questioned, with the inference that the deficit would probably be greater in 1959 than the present budget plans for. If that were true, would that not suggest all the more need for flexibility in your position ? Secretary ANDERSON. Not only the need for flexibility, but the actual need for being able to meet our expenditures. Senator BENNETT. SO that the uncertainty of the present situation is a potent argument for the necessity of a greater margin between your present situation and the actual debt Secretary ANDERSON. I t is indeed. Senator BENNETT (continuing). Limit. The other thing I would like to get into the record: A great deal of time has been taken today developing the idea that you. as the Secretary of the Treasury and manager of the fiscal affairs of the country, are being used as an involuntary instrument in the interest of economy. I think it has been brought out that Congress appropriates more than it should sometimes, and it has been brought out that the executive department has a backlog of some $70 billion of appropriated funds, and the inference—well, more than the inference; the rather plain statement has been made over and over again that it is desirable to keep the debt ceiling right down on top of your head so that you become an involuntary control on those of us who really initiate, who really create, the problems. I t seems to me that whatever value that may have, we have ignored the fact that you do have an affirmative responsibility in your situation, which is to manage the public debt as cheaply and as successfully, advantageously, as possible. Now we have a choice here. I think we are setting up a choice. Is your affirmative responsibility to be sacrificed in order that under some circumstances your involuntary usefulness may be increased? And I feel that it would be shortsighted for us to assume that your affirmative responsibility should be scuttled or at least endangered in this kind of situation. During the hearings last summer, a great deal was made of the fact that the public debt is becoming increasingly short, that there had not been enough long-term issues during the past two years, and the process of attrition of time was shortening up the debt. Do you feel, as part of your responsibility, you should be attempting constantly at least to replace that attrition, if not to lengthen out the present average life of the debt ? Secretary ANDERSON. Senator, I feel very strongly that we ought to take full advantage of every opportunity the market gives us to extend and thereby better balance the debt, not only from the standpoint of doing it as economically as we can during periods wdien interest costs are perhaps not as high as at others, but for another very important reason: We, ever}' time we go to the market—and when I say "we," I am talking about the United States Government—with any kind of security, we compete in the whole market process with others who 88 DEBT CEILING INCREASE are seeking funds, and to that extent we make more difficult the financing of private businesses, more difficult the financing of local subdivisions, States, municipalities. And I think we have the dual responsibility, in trying to take advantage of these opportunities, both to get this thing in better balance so that you do not go so frequently, as w^ell as to t r y to do it more economically if the opportunities come. Senator BENNETT. I think that is a very important phase of it. I would like to return to the other one briefly for a minute, however. A point has been made that during the preceding 2 years, the years of your predecessor, there were no long-term bonds sold. You have sold two small issues. Would you say that the present situation may be more favorable to you in carrying out your responsibility to lengthen the average of the debt than the situation your predecessor faced in those two years ? Secretary ANDERSON. Senator, I would not at all want to be unresponsive to your question. I would like to respectfully suggest that we are very close upon some financing, and I would like to defer any direct answer of what I believe until that is over. Senator BENNETT. Let me rephrase the question: When or to the extent that the present situation would seem to offer an opportunity for a lengthening out of the debt, would a very tight debt limit make it impossible for you to take advantage of that situation ? Secretary ANDERSON. I t would make it impossible or exceedingly difficult to take advantage of it, yes, sir. Senator BENNETT. I think those are all my questions. Excuse me, may I ask one more. Earlier today the record shows or you reported that last fall, if I remember correctly, you disposed of or you used the F N M A as a device to give you a little more leeway in you ceiling. Secretary ANDERSON. Yes. Senator BENNETT. And the record shows that you have exhausted that source, practically exhausted that source of leeway. Secretary ANDERSON. Yes. Senator BENNETT. YOU have $500 million worth of gold which, if sold, would do the same thing. Secretary ANDERSON. I t would be exhausted. Senator BENNETT. I s that the last resource you have ? The CHAIRMAN. There is some silver, and so forth, about a couple of hundred million. [Laughter.] Secretary ANDERSON. YOU have some silver, and then you have some leeway under the CCC, for instance, but it is a very awkard situation. Senator BENNETT. But it is an awkward situation. Secretary ANDERSON. Yes. Senator BENNETT. And it seems to me if we say to you, "Sell that $500 million worth of gold," we are putting you in a position where, in the event of a contingency or an emergency, then you have got no very readily available source of cash left. Secretary ANDERSON. I really have no place to go except to come back and ask for an increase in the debt limit. Senator BENNETT. I t seems to me the Government of the United States, big as it is, should not come right up to the last ultimate resource before it gives you some flexibility in carrying out your responsibility. I s that a fair statement ? DEBT CEXDINiG INCREASE 89 Secretary ANDERSON. That is a fair statement, and we have felt that in seeking this $5 billion of increase, that we are approaching our problem modestly and prudently, and not asking just for unneeded amounts of money or unneeded borrowing authority. Senator BENNETT. Did anybody ask you earlier to indicate for the committee, as I think for the House committee, the added cost in interest that the F N M A transaction represented ? Secretary ANDERSON. NO one has asked. I have those figures. The spread is about one-half to five-eighths of 1 percent difference. Senator BENNETT. On $800 million. Secretary ANDERSON. $800 million. Senator WILLIAMS. Will the Senator yield for a question at that point ? Senator BENNETT. Yes. Senator WILLIAMS. Mr. Secretary, do you think it would be wise to go back to the old provision whereby the Government, I mean the Treasury Department, sold these as Government bonds and to cancel the authority of these agencies to sell them direct, as we did, because unquestionably we could save this one-half or five-eighths of a percent, and while these bonds that are being sold do not have a direct Government guaranty, there is a moral commitment there which we all recognize. Secretary ANDERSON. Well, certainly it would be cheaper if they were all direct obligations of the United States. If, however, you attempted to put all of the obligations which are not the direct obligations of the United States under the same blanket, then we would certainly have to be asking for a much larger increase in the debt ceiling than we are asking for. Senator WILLIAMS. I recognize that. I just wonder, if the Senator would yield again, would you advise we face that situation, take an inventory and reevaluate our debt ceiling to cover it, and bring them all in under and sell them as Government bonds? Secretary ANDERSON. I would not say I have reached a firm conclusion. I t is a matter in which Mr. Baird and I and other members of the Department are studying it very carefully. Senator WILLIAMS. And you would not care to make a recommendation ? Secretary ANDERSON. Not at this moment, sir. Senator BENNETT. I appreciate the Senator's bringing that up. I do not have the figures before me, but I have the impression that over in another committee a feeling is developing the Treasury has no obligation involving F N M A funds, so the Treasury should reinstate its earlier obligation, FNMA's loaning authority should be increased; because of the Treasury once having had $800 million and sold them, now they ought to give us $800 million more of Treasury funds so we can have that much more money to loan. So if they were definite Federal obligations, you would avoid that particular pressure. The CHAIRMAN. Of course, they do not come under the debt limit, since 1954. Senator BENNETT. N O . But, Mr. Chairman, there are people who are anxious to see F N M A buy more mortgages who say, "Well, there is no Federal money in F N M A now. There was $800 million there last year. The Treasury should be willing to take $800 million more worth of F N M A funds and thus increase their loaning authority, put it under the debt limit." 90 DEBT CEILING INCREASE The CHAIRMAN. That does not come under the debt limit by law, am I correct ? Secretary ANDERSON. I t does not come under the debt limit. The CHAIRMAN. Not since 1954. Senator BENNETT. But to the extent you provide money for F N M A directly, that comes under the debt limit. Secretary ANDERSON. Yes. But we go out and market those to the public in order to get the public holding the bonds instead of the Treasury. The CHAIRMAN. But that is a small amount on a temporary basis, is it not ? Secretary ANDERSON. Yes, sir. You see, we have two funds in the FNMA. One is this liquidation account, and those are the funds which were referred to recently in the $800 million. Now, in the secondary mortgage market they call on us from time to time for funds with which to buy mortgages. The CHAIRMAN. That is a revolving fund. Secretary ANDERSON. Revolving. When they accumulate it they go to the public and sell it. Senator BENNETT. I am through. Senator WILLIAMS. On the World Bank bonds, those are sold direct to the public by the World Bank and are not counted in the national debt, is that not correct ? Secretary ANDERSON. That is correct. Senator WILLIAMS. But they do carry a legal Government guaranty. Secretary ANDERSON. U p to a certain amount. Senator WILLIAMS. U p to $2.5 billion. Secretary ANDERSON. Yes. Senator WILLIAMS. I n other words, we definitely guarantee those just as we do every Government bond that is issued, is that not true? Secretary ANDERSON. Well, there is not perhaps the same legal situation, but it is an obligation. Senator WILLIAMS. Well, is there not a legal obligation ? I am just asking the question. Does not the law say that the Treasury Department will furnish up to $2.5 billion ? Secretary ANDERSON. They can call on the Secretary of the Treasury and you are obligated to put it up. Senator WILLIAMS. YOU are obligated to put the money up. So it is a guaranty. Secretary ANDERSON. Well, when you get down to this choice of words, you get legal significances. Senator WILLIAMS. I think we asked you for some further explanation on that. Do you have that report ready? The last time you were up here, I think we asked for a compilation. Secretary ANDERSON. That is when I was visiting with you. We do not have that material. Mr. BAIRD. We will give you that, Senator. (The information requested is as follows:) R E L A T I O N S H I P OF UNITED STATES LIABILITY ON STOCK OF INTERNATIONAL TO PUBLIC DEBT L I M I T BANK The articles of agreement of the I n t e r n a t i o n a l Bank for Reconstruction and D?velopment, of which the United States became a member p u r s u a n t to the Bretton Woods Agreements Act of 1945, provide t h a t 80 percent of the stock DEBT CEILING INCREASE 91 subscription of each member country is subject to call by the bank only to meet obligations of t h e bank for funds borrowed or on loans g u a r a n t e e d by it. T h e subscription of the United States to the I n t e r n a t i o n a l Bank is $3,175 million, so t h a t the 80 percent obligation is $2,540 million, a t the m a x i m u m . Members a r e liable to call regardless of the currency in which the obligation of the bank to be met is expressed, but payments on any call may be made, a t the option of t h e paying member, in gold, in United States dollars, or in the currency required to discharge the obligations of the bank for which the call is made. T h e 80 percent portion is not a specific g u a r a n t y or security applying to any p a r t i c u l a r obligations of the bank. In fact, the bank's articles provide t h a t all bonds issued or guaranteed by the bank must bear on their face a conspicuous statement to t h e effect t h a t they a r e not an obligation of any government, except as t h e government may be liable as a borrower on the p a r t i c u l a r security. The aricles of agreement also provide t h a t when calls a r e made on t h e 80 percent subscription, they shall be in uniform proportion on all shares. If a call did not yield the funds necessary to meet the obligations of the bank then due because all the members did not respond to the call, the bank would be required to m a k e further calls until the necessary amounts h a d been collected from the members which did pay. Another factor which makes the exact amount of a member's actual liability on the 80 percent subscription very uncertain is t h a t no call would be m a d e unless the bank h a d in fact suffered serious defaults on its outstanding loans. To date all payments on loans to the bank have been made as they fell due. Moreover, the bank h a s very substantial reserves which would be utilized before calls were made on the stock subscriptions. Thus t h e liability of a member of the I n t e r n a t i o n a l Bank on the 80 percent subscription is highly contingent as to both amount and time when it might take effect. I t is clear t h a t this liability is not subject to section 21 of the Second Liberty Loan Act, as amended (31 U. S. C , section 757b). Senator CARLSON. Mr. Chairman, before we adjourn, if I may have a moment. I will not be able to be here in the morning, and therefore I want to say that I appreciate very much the fine statement of the Secretary today, and I think most everything has been asked in the wTay of questions. I t is an interesting history to me to watch this debt limit increase. I happen to have checked the tables, that is, table 1, and I note that I was a member of the House Ways and Means Committee May 26, 1938, when the debt limit w^as $45 billion, and I followed it on through. In 1941 we stepped it up to $65 billion; in 1942, $125 billion; 1943, $210 billion; 1944, $260 billion; 1945, $300 billion; and in 1946 back to $275 billion. Then I left the House of Representatives in January 1947 and they did not raise the debt limit until 1954 when I got back on this committee, and it was $281 billion; 1955, $281 billion; 1956, $278 billion; 1957, $275 billion, and now it is before us again for a $5 billion increase. So I have had an interesting experience in following this debt limit. I want to ask the Secretary, and I appreciate his problems, after all, Congress builds the expenditures of this Government; you do not do that. Under our Constitution, you handle our debt, our Federal debt. Now, you have stated to this committee that you think you should have available funds for expenditures which would be $3.5 billion, or 12 days' expenditures. In these past years of all these debt limits that I have mentioned, what has been the situation in the Treasury? Have they had greater leeway or less ? 21297—58 7 92 DEBT CEILING INCREASE Secretary ANDERSON. Very much larger leeway. Senator CARLSON. Well, I very well remember back in the House Ways and Means days when they had many times what you are requesting today, and I would be pleased, Mr. Chairman, if they would put that in the record. I do not want to take the time of the committee this evening, but I remember some of those discussions, and sometimes we had billions of dollars in cash, hundreds of millions of dollars in cash and billions in leeway, and I would like to have that placed in the record. Secretary ANDERSON. We have those figures, and we will be glad to put them in the record. Senator CARLSON. I think it would be interesting. Secretary ANDERSON. All right, Senator. (The information referred to follows:) Public debt subject to statutory limitation and operating cash balance [In billions] Date Statutory limitation June 30— 1936 i._„ 1937 i—_ 1938 i..„ 1939 i_._. 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 Dec. 31, 1957 Jan. 27, 1958. $45.0 45.0 45.0 45.0 2 49.0 65.0 125.0 210.0 260.0 300.0 275.0 275.0 275.0 275.0 275.0 275.0 275.0 275.0 275.0 281.0 281.0 278.0 275.0 275.0 D e b t outstanding subject to limitation Balance issuable under limitation $32.8 35.9 36.9 40.4 43.2 49.5 74.2 140.5 208.1 268.7 268.9 257.5 251.5 252.0 256.7 254.6 258.5 265.5 270.8 273.9 272.4 270.2 274.6 274.5 $12.2 9.1 8.1 4.6 5.8 15.5 50.8 69.5 51.9 31.3 6.1 17.5 23.5 23.0 18.3 20.4 16.5 9.5 4.2 7.1 8.6 7.8 .4 .5 Operating cash balance^ including gold $2.4 1.1 1.8 2.4 1.2 2.0 2.4 8.& 19.6 24.3 14.2 3.2 4.8 3.2 5.3 7.1 6.4 4.2 6.2 5.2 5.7 5.1 3.1 2.5 i Congress limited the amount of bonds outstanding. The figures include the following for bonds on the dates when such limitation was in effect: Date J u n e 30— 1936 1937 1938 1939 . Limitation A m o u n t of b o n d s outstandingsubject to limitation $25.0 25.0 30.0 30.0 $18.4 21.9 24.3 28.4 Balance issuable $6.6 3.1 5.7 1.6 2 Includes authorization for national-defense purposes in act approved June 25, 1940, of notes, certificates, and bills in an aggregate amount of $4 billion outstanding at any one time, less any retirements made from the special fund made available under sec. 301 of the Revenue Act of 1940. No securities issued under this authority were outstanding on June 30, 1940. The act approved Feb. 19, 1941, eliminated the separate authority for $4 billion of national defense series obligations. DEBT CEILING INCREASE 93 Senator CARLSON. Second, there was some discussion this morning about your using the anticipated postal revenues in case Congress should vote 4- or 5-cent postage rates. Now, Congress has not voted that, and if we pass the postal-pay bill which is on the Calendar of the Senate, and as I understand will be up for consideration soon, the deficit in 1959 will be $701 million in the Post Office Department, and if we add to it this $320 ^ million in the postal pay bill which is now on the Calendar, the deficit will be well over a billion dollars. That will add further to your difficulties ; will it not ? Secretary ANDERSON. Yes, sir. Senator CARLSON. I believe the President recommended pay increases of $1,052 million for postal, classified, and military. Do you remember if that is correct ? Secretary ANDERSON. I do not remember the particular figure, but it is in that neighborhood. Senator CARLSON. I think that is the correct figure. The President recommended $160 million for an increase in postal pay. Now, anything we vote in excess of $160 million, I assume will become a pattern for the other employees of the country, classified and military, which I think, Mr. Chairman, has possibilities of greatly adding to the problems of the Secretary in this program. And we, in Congress, have a responsibility not only in that phase, but I personally feel that we must do everything we can to help the Secretary in his problems in this financing of our national debt to the best advantage. Secretary ANDERSON. Thank you, sir. Senator CARLSON. I thank you, Mr. Chairman. The CHAIRMAN. We have our own responsibilities, too, not to pass these bills if they are going to add to the debt. Mr. Secretary, are you going to call Senator Malone? Secretary ANDERSON. I will call Senator Malone and be in touch with you. The CHAIRMAN. What is the latest hour you can stay here tomorrow morning ? Secretary ANDERSON. My meeting is set up for 11 o'clock. The CHAIRMAN. Does any other Senator desire to question the Secretary ? Senator Jenner. Senator BENNETT. H e is out of town. The CHAIRMAN. H e is very much interested in this debt ceiling. Secretary ANDERSON. I will go see Senator Malone now. The CHAIRMAN. If Senator Malone desires to question you in person, the committee will meet tomorrow morning at an hour which will be agreeable with both you and Senator Malone. If, perhaps, Senator Malone is satisfied with the testimony thus far, it will not be necessary to meet tomorrow. I shall be glad to allow Senator Malone to submit a statement in the record in lieu of his interrogation of you if he so desires. Secretary ANDERSON. I will go to his office immediately and so advise him. The CHAIRMAN. Will you notify Mrs. Springer of the agreement reached ? 94 DEBT CEILING INCREASE (111 accordance with permission granted by the chairman, the following remarks made by Senator Malone at the end of the hearing on January 28, 1958, and summary statement of views subsequently submitted, appear at this point in the record.) Senator MALONE. NOW, Mr. Chairman, I want to say at the outset that I think it is utterly impossible to consider one particular part of this arrangement that has been going on now for 25 years to attack the social and economic structure of this country, that it is utterly impossible considering them one at a time and giving them the proper weight. The first thing we did was in 1933, and was when we followed England and other foreign nations off the gold standard and utterly abandoned any attempt at holding the purchasing power of the dollar. Since that time, no attempt has been made by any administration, including our own, to hold the purchasing power of the dollar. We give it lipservice, but when we cut it loose from the gold standard we cut the only mooring it had, just like cutting the mooring of a balloon, and there is no place for it to go but up. Inflation has continued over this 24- or 25-year period and it will continue to go up, which means, of course, that all of the pensions and the savings and everything in the country are destroyed. Now, with that one particular thing wre priced ourselves out of the world markets almost immediately. So we are entirely priced out of the markets of the world now except to the extent that we furnish a subsidy or give them money ahead of time to buy the goods. That is where your $70 billion went—into building plants there to compete with our goods with cheap labor, shipped back here under the virtually free-import system that we adopted in 1934; and to build dollar credits. Under my questioning of Secretary Humphrey in part 1 of the parent testimony and of Mr. Martin in part 3, it was brought out that if all the dollar credits in Europe and Asia were converted, as they could easily be so that they could demand gold for their dollar credits, we would have only $5.7 billion of gold left. Now here we are using part of the gold for this debt. But we better figure out whether we own it or not. I t is reported to us each year that we have $22 billion or $24 billion in storage, but nothing is said about who owns it. Now, they testified that they could stop payment in gold but also admitted readily that that would depress the American money on international markets and probably cause a severe depression in the United States. Now, in 1934, the Congress passed the 1934 Trade Agreements Act and transferred to the Executive the constitutional responsibility of Congress to regulate foreign trade and the national economy with full authority—and this is the gimmick—that even when the Tariff Commission (which is just a "chore boy," a messenger boy; they have no authority whatever) recommends to the President that an industry, a part of it or all of it, is threatened to be distributed among foreign nations by our free imports policy, that—and Secretary Dulles testified to this, sitting right in this chair in 1953 when they extended the 1934 Trade Agreements Act to June 1958—the President must, or may, consider whether or not by the sacrifice of a part or all of an industry, be it textiles, machine tools, minerals, or one of more than 5,000 other industries and materials—if by the sacrifice of all or a DEBT CEILDvG INCREASE 95 part of that industry he can further our international policy of treaties and agreements; then he must or may do that. I n other words, there is a gimmick there that never was in the Constitution of the United States. Also, the same Mr. Dulles testified that in 1947 they organized General Agreement on Tariffs and Trade and transferred the constitutional responsibilities of Congress to regulate foreign trade and the national economy to Geneva under that GATT—General Agreement on Tariffs and Trade—and that they then could make these multilateral trade agreements. And there, again, Mr. Chairman, is another gimmick. They make these agreements; they lower the tariffs of the United States on important things and will lower the tariffs on some of their material; but as long as they are short of dollar balance, they do not have to keep the agreements, and you are short of dollar balance until you are all living alike; in other words, you just divide the wealth of the United States of America. So from 1947 to the present time—first, 34 and now 37 foreign competitive nations have been, and are, sitting there dividing the markets of the United States among them, and the markets of the United States are gone. So we are living on a war economy. Now we want to hop that up to $42 or $44 billion because that is the only thing we are living on, the purchases of the materials that we manufacture in the United States through our own economy, our own $42 or $44 billion. If you quit spending that money for 60 days at that rate, you are out like a light; everyone knows that. Now, the third thing is the billions to Europe. That started with the Marshall plan, so ably outlined by the chairman this morning. I t did not really start with the Marshall plan; it started with the $3,750 million to England in 1946, which was going to be the last. That was going to be the last; everything was going to run rosey in Europe from then on. But Mr. Marshall made a speech at Harvard in 1947 in which a paragraph appeared—I doubt if the old man knew it was there himself—where he said, "We should help them get on their feet by certain cash payments/' The Prime Minister of England took that ball on the first bounce and within 30 days let us know just howT much it w^as going to cost us. And the chairman is right; it was supposed to be $15 billion in a 5-year program, of which the senior Senator from Nevada on the floor in 1948 said, "Once we start it it will become permanent" ; and it has. The Secretary of State sat right in that witness chair and testified it must be permanent. And that is when you gave him the money last year. This year I hope we have him here again and let him explain it. Now, the fourth thing, there are four organizations, Mr. Chairman, that are operating for one thing, and that is to finance American corporations and individuals and others to build plants in foreign nations and use the cheap labor and send the stuff back here through the free importing policy. Those four are, according to Mr. Martin who testified on page 1,593 of part 3 of the hearings under my questioning: the Export-Import Bank, the International Bank, the International Monetary Bank, and the International Finance Corporation. The ExportImport Bank w^e finance entirely; the other three we finance up to 36 percent, but actually we put in the only real money. The other is their thin paper money. So that as a matter of fact we finance all four of 96 DEBT CEILING INCREASE them—for one purpose, and that is to loan money and to finance American organizations and corporations and individuals to go to foreign nations and build these plants and send this stuff back with the $2-aday labor or 50-cent labor, whatever it is. Now, with those four organizations operating, it is, in effect, a pincer movement, Mr. Chairman, to destroy the economic and social structure of this Nation—and it is much nearer destruction now than many of the Senators, I am sure, realize. One thing I believe the Senators should realize, and of course they must. If they do not vote for it, an administration cannot do it. So there is no reason to blame an administration for spending $70 billion on foreign nations in 10 or 12 years. There is no reason to blame an administration for keeping up 3 missile organizations over these last years and 5 air corps, because if Congress did not vote for it they could not do it. Now, Mr. Chairman, everyone who studies it knows that at least $15 billion a year is spent in obsolete material and in billions to Europe, our 3 missile organizations, and the 5 air corps. We have an Air Corps, a Navy air corps, an Army air corps, a Marine air corps, and a Coast Guard air corps; we need one air corps. We have 3 missile organizations, and, of course, everyone realizes we need 1. And here we have, in addition to that, foot soldiers in 73 nations throughout the world, all "dead" when the fight starts; because, if they are not in the way, they will cut them off like MacArthur did the J a p s out on those isolated islands. And if they are cut off that way, they will starve just like chinchbugs in Kansas. Now, Mr. Chairman, I want to close by saying I have seen every nation in the world, and I did not go for social purposes. I t took 11 years. The last trip was for two months and a half behind the socalled Iron Curtain in 1955 and when they finally turned me loose I traveled 14,000 miles in Russia. I was in every one of the Socialist Republics, took pictures in their manufacturing plants, where they are building their dams on the Volga River, and all over. I held an interview there that was widely used here, although sometimes misquoted, and when I got back on the Senate floor in 1955, I said in speeches three things: (1) that in a very reasonable time Russia would make itself self-sufficient in the area under its control in everything they need for war or peace; (2) there would be no successful revolt; (3) all the power in the Eastern Hemisphere has moved to Russia. There is no power in Europe, there is none in England, none in France, The empire colonial system is dead. Then I said, Mr. Chairman, if these three things are true—and I believed them to be, and I do as of this minute—then wTe must make our system work. The Russians, whether we like it or not, are making theirs work. Ours is not working. We are sitting here on the Senate floor and on the House floor by the votes of our people. Yet there is no more chance of you holding that debt limit to $275 billion than there is flying to the moon in the morning. And the chairman understands that just as well as does the senior Senator from Nevada. I t is a question of how much you are going to give in each time. That is all. I admire the senior Senator from Virginia, the longtime chairman of this committee, for his attempt to hold it down. But after our DEBT CEIUING INCREASE 97 votes—I say ours because of my ineffectual attempts to prevent it on the Senate floor—the majority of the Senators have voted consistently for the four things that I have talked about as a pincers movement to destroy us and as long as they do, they will be sitting here doing exactly what they are doing, year after year. We heard three times from Secretary Humphrey this same story that we heard from Secretary of the Treasury Anderson yesterday. Is that not true ? And each time all this committee could do was to accede to his request to a certain extent; is that not right ? The CHAIRMAN". Eight. Senator MALONE. NOW, then, in my humble opinion, Mr. Chairman, unless we realize that there is something wrong in Denmark with all of the State Department palaver that we are going to surround Russia and contain Russia—well, you might as well contain me in Nevada, or you in Virginia. So all he did was give them time to get ready. Now, if you will go deep enough into this national defense thing, you will find what I say is true. You can make this hemisphere selfsufficient for war and peace. You can defend it from North America, and that is the only place from which you can defend it. Because we are going to get run out of Europe in 2 years, and maybe much sooner, because they wTill tell you that their security is threatened if our stuff is allowed to stay there. So, Mr. Chairman, with the privilege of rearranging what I have said, I am going to close now. But I want to close by saying again that when, in this committee or on the Senate floor, we allow these things to come one at a time and are overwhelmed by it without considering the picture, then this is only the beginning of the end. I t has been going on 25 years. I t did not start yesterday. The Eisenhower administration did not start it. I t is simply carrying on what it inherited. That is the worst thing you can say about it. I am very fond of the President. I have a fine personal relationship with him. The fact that I have never voted for any of these billions of dollars to Europe and funny money and free trade, free imports, that are destroying the American jobs and American investments—does not alter that and I always tell him first. I have a visit with him, and he knows exactly how I am going to vote. But I agree with the chairman now. As long as the Senators of the United States go out on that Senate floor and vote for all of these things I have mentioned, they have no alternative here than to do what the Secretary of the Treasury requests. (The summary statement subsequently submitted by Senator Malone follows:) SUMMARY STATEMENT OF SENATOR GEORGE W. MALONE Abraham Lincoln, in referring to what he regarded as a preconceived plan, once said: "We cannot absolutely know that all these exact adaptations are the result of preconcert. But when we see a lot of framed timbers, different portions of which we know have been gotten out at different times and places and by different workmen, and when we see these timbers joined together, and see they exactly make the frame of a house or a mill, all the tenons and mortises exactly adapted to their respective places, and not a piece too many or too few—in such a case, we find it impossible not to believe that all worked upon a common plan or draft drawn up before the first blow was struck." 98 DEBT CEILING INCREASE A PRECONCEIVED PLAN Mr. Chairman, there is little doubt that there was a preconceived plan to divide the wealth (markets and cash) of this Nation among the nations of the world, and to make us dependent upon foreign nations across major oceans for the critical minerals and materials without which we cannot fight a w^ar or live in peace. In 1933 this Nation followed England off the gold standard and adopted a managed currency which could only result in inflation and the pricing of this Nation out of the world markets. The following year the Congress passed the 1934 Trade Agreements Act (so-called reciprocal trade) which transferred to the President this constitutional responsibility of Congress and gave him full authority to place it in the hands of competitive foreign nations at Geneva, Switzerland where it now resides. At Geneva these nations are now dividing our markets among themselves and thereby causing unemployment here and making us dependent upon them for important critical materials necessary for our security while we are living on a "war economy." In 1946 the $3% billion loan to England, the Marshall plan in 1948, succeeded by EGA and mutual security, started a program of direct division of the wealth, which the Secretary of State now testifies must be permanent. Under this plan more than $60 billion has been transferred to foreign nations. The Constitution has continually been modified by treaty—as, for example, the status of forces treaty—and these modifications altogether have finally taken form as a plan for the destruction of the United States through amending the Constitution without submitting it to the people as has been guaranteed by that document, The plan constitutes international socialism at its worst and can only result in complete international social and economic control of the United States of America, together with a severe curtailment of our established wage living standards. The Secretary of the Treasury has testified that he represents only one part of the plan. W A G E S , I N S U R A N C E , P E N S I O N S , SAVINGS REDUCED BY I N F L A T I O N A continued managed currency means a continued inflation. Continued inflation means a continued reduction in wages, insurance, pensions and savings through reduction in purchasing power of the dollar. As President Lincoln well said : "In such a case we find it impossible not to believe that all worked upon a common plan or draft drawn up before the first blow was struck" to internationalize the social and economic structure of the United States. George Washington, relative to evading the Constitution, said in his farewell address that: "If in the opinion of the people, the distribution or modification of the constitutional powers be in any particular wrong, let it be corrected by an amendment in the way which the Constitution designates. But let there be no change by usurpation for though this, in one instance, may be the instrument of good, it is the customary weapon by which free governments are destroyed." The Constitution plainly says in article I, section 8 that: "Congress shall have the power * * * to coin money, regulate the value thereof, and of foreign coin * * * " On December 23, 1913, the Congress passed the Federal Reserve Act, setting up the Federal Reserve Commission and transferring to that body the management of the Nation's currency. THE SECRETARY FAVORS A MANAGED CURRENCY The Secretary of the Treasury, Mr. Humphrey, testified that he favored the continuation of the managed currency system and that the Federal Reserve Commission had the power to determine the amount and kind of currency in circulation and to fix the stock exchange margin. Congress only recourse would be to amend the Federal Reserve Act. The Secretary testified that he had the power to fix the rate of interest to be paid on Government bonds, which influenced the interest to be paid on private funds and bonds, and that foreign governments can secure our gold through dollar balances, for $35 per ounce and sell it on the open world market for any price they can get. DEBT CEILING INCREASE 99 The Secretary further testified that he would not change the present ''managed currency" system regulated under the Treasury and the Commission, as long as the unsettled international situation prevailed. Since troubled times have been the established condition in Europe and Asia for centuries the situation is not likely to change. The record, however, is that a strong nation has always led in establishing a sound currency and that weaker nations have followed their example—the United States in 1879 and 1900 and England in 1916. Regardless of that record the Secretary still maintained that we should retain our presently managed currency. D U T I E S OR T A R I F F S The Constitution is explicit in article I, section 8, that: "The Congress shall have the power to lay and collect taxes, duties, imposts, and excises * * * to regulate commerce with foreign nations, and among the several States * * *." The Congress passed the 1934 Trade Agreements Act and transferred to the President its constitutional responsibility to regulate our national economy and foreign trade and, with it, gave him the full authority to transfer that responsibility to Geneva, Switzerland, where at this time 34 foreign competitive nations, through multilateral treaties under the GATT (General Agreement on Tariffs and Trade) are dividing the American markets among themselves. GOLD OWNED BY U N I T E D STATES AND I N OUR P O S S E S S I O N The Secretary of the Treasury testified that we have stored in various depositories in this country including Fort Knox, $22,406 million in gold. A statement from the Treasury specified that $16,200 million of dollar credits are owned by foreign nations and individuals—and that it is customary to honor these dollar credits of foreign nations in gold when presented for payment. It is generally known that the individually owned dollar credits can be readily converted to nation-owned credits and therefore subject to redemption by gold payments. The Secretary testified that he can, of his own volition, refuse gold payments for foreign-offered dollar credits but that, in the absence of an international emergency such as war, the effect of such a refusal to honor the American dollar credits would be depressing on the foreign exchange. Further testimony showed that if all foreign dollar credits were honored by gold payhients in the customary manner we would then have $6.2 billion of gold remaining in the United States Treasury to back the $27.4 billions of outstanding currency, which is not up to the required 25 percent by law. T H E GOLD STANDARD Mr. Chairman, on April 1, 1957, I introduced Senate bill 1775 which provides in part: "That notwithstanding any other provision of law, gold in any form, mined subsequent to the enactment of this act, within the United States, its Territories, and possessions may be melted, smelted, concentrated, or otherwise treated so as to prepare it to be sold, or held and stored as is, or has been customary with gold, and it may be bought, held, sold, or traded upon the open market within the United States, its Territories, and possessions for any purpose whatsoever without the requirement of licenses and it may be exported without the imposition of duties, excise taxes, the requirement of licenses, permits, or any restrictions whatsoever." Then on April 16, I introduced Senate bill 1897 which provides in part: "AH money of the United States, including money issued by banks, shall be maintained on a parity with the standard gold dollar by freedom of exchange at its value with standard gold bullion or coin at the United States Treasury." SECTION 3 3 6 — T H E 1 9 3 0 T A R I F F ACT The 1934 Trade Agreements Act as extended expires in June of 1958. If it is not renewed then, Congress automatically resumes its constitutional responsibility to regulate foreign trade and the national economy and the American workingmen and producers are back in business under section 336 of the 1930 Tariff Act headed "Equalization of Costs of Production" ; 100 DEBT CEILING INCREASE "If the Commission /finds it shown by the investigation that the duties expressly fixed by statute do not equalize the difference in the cost of production of the domestic article and the like or similar foreign article when produced in the principal competing country, the Commission shall specify in its report such increases or decreases in rates of duty expressly fixed by statute (including any necessary change in classification) as it finds shown by the investigation to be necessary to equalize." DUTIES OR T A R I F F S Mr. Chairman, on January 7, 1957, I introduced Senate bill 28, which if passed would return the regulation of our foreign trade and national economy to the Tariff Commission, an agent of Congress, under the 1930 Tariff Act. Under the heading "Declaration of Policy," the following language is to be found in section 1 of my Senate bill 28. DECLARATION OF POLICY SECTION 1. It is declared to be the policy of the Congress— (a) to facilitate and encourage trade with foreign nations on the basis of fair and reasonable competition. (b) to maintain an investment climate through the principle applying equally to the whole country. (c) to provide necessary flexibility of import duties thereby making possible appropriate adjustments in response to changing economic conditions. (d) to assure the accomplishment of these objectives by returning to the provisions of the Constitution (art. 1, sec. 8) in the control over American import duties now subject to international agreements. On page 3 of the bill, in subparagraph (2) of subsection (b) of section 3, the Commission is authorized and directed, among other things— (2) to prescribe, upon termination of any foreign-trade agreement, that the import duties established therein shall remain the same as existed prior to such termination, and such import duties shall not thereafter be increased or reduced except in accordance with this act. It is also provided, in subparagraph (1) of section 3 (b), that the Commission is authorized and directed— (1) to terminate as of the next earliest date therein provided, and in accordance with the terms thereof, all the foreign-trade agreements entered into by the United States pursuant to section 350 of this act. That is to say, the 1930 Tariff Act. Section 4 (a), under the heading "Periodic Adjustment of Import Duties," provides as follows: "Periodic Adjustment of Import Duties "SEC. 4 Title III, part II, section 336, of the Tariff Act of 1930 is hereby amended to real as follows : " 'SEC. 336. Periodic adjustment of import duties " 4 ( a ) The Commission is authorized and directed from time to time, and subject to prescribe and establish import duties which will, within equitable limits provide for fair and reasonable competition between domestic articles and like or similar foreign articles in the principal market or markets of the United States.' " Mr. Chairman, Senate bill 28 would broaden the Commission's scope to allow it to compensate for a foreign nation's manipulation of currency in terms of the dollar and its general maneuvering for trade advantages that are detrimental to the United States. It will be noted that neither a high nor a low tariff is the objective of the regulation. The objective is a tariff continually adjusted in a spirit of fair and reasonable competition, to take the profit out of the cheap foreign labor at the water's edge and then, when any nation approached our American standard of living wages, free trade with that nation would be almost automatic and immediate. The common objective is free trade. The problem is how to attain that creditable ambition without destroying our own standard of living. Congress is our legislative body. It cannot shift the responsibility. The Constitution distributes the powers among the three branches of Government and it is no defense for Senators and Congressmen to say that the President recommends specific legislation or that propaganda has wrongly influenced public opinion. Legislative decisions are theirs alone to make. DEBT CEILING 101 INCREASE ENCOURAGING A M E R I C A N I N V E S T M E N T S ABROAD Under t h e 1934 T r a d e Agreements Act, as extended to J u n e 1958, t h e 34 foreign GATT nations based at Geneva continue to divide between themselves t h e American m a r k e t s , and this can do no less t h a n encourage American capital investm e n t s abroad, under the policy of importing the products of foreign "sweatshop labor." T h e American owned foreign plants not only produce for foreign consumption but these products produced by t h e low living s t a n d a r d labor a r e imported h e r e u n d e r t h e lowered duties or tariffs. T h e Secretary testified t h a t t h e Import-Export B a n k entirely financed by American t a x p a y e r s up to $5 billion is to encourage through low-interest longterm loans t h e export of American capital to t h e low-wage foreign nations. H e f u r t h e r testified t h a t t h e I n t e r n a t i o n a l Monetary F u n d — t h e I n t e r n a t i o n a l Bank of Construction and Development, and the I n t e r n a t i o n a l Finance Corporation all a r e set up with t h e avowed objective of encouraging American capital to move into t h e foreign cheap labor countries t o furnish their m a r k e t s and to import the low-cost labor product to compete with the product of our higher s t a n d a r d of living wages and t h e higher cost of doing business in this Nation. We a r e committed up to $5 billion for the Import-Export B a n k and for 35 percent of the financing of the other three organizations. The three are independent corporations managed in each case by a Board of Directors and the control rests with the foreign nations board members. All of these corporations a r e in addition to the I n t e r n a t i o n a l Cooperation Administration ( m u t u a l security) which doles out the $4 to $5 billion dollars annually appropriated by Congress for gifts of cash and goods to foreign nations. T H E P A T T E R N LEADS TO I N T E R N A T I O N A L S O C I A L I S M The entire p a t t e r n , from the abandonment of the gold s t a n d a r d in 1933, the passage of the T r a d e Agreements Act in 1934, the t r a n s f e r to Geneva in 1947 of the constitutional responsibility of Congress to regulate our foreign trade, and the inception of the four .corporations to encourage American capital to invest in foreign low-wage s t a n d a r d nations—the m u t u a l security giveaway program—is to distribute American m a r k e t s and dollars among t h e lower wage living s t a n d a r d European a n d Asiatic nations. I t all a d d s u p to i n t e r n a t i o n a l socialism in i t s worst form. T h e United States is the only producing nation in the world today t h a t does not protect its own working men and investors by a duty or tariff, by import a n d exchange permits, or both. F r e e t r a d e will only become feasible when the flexible duty or tariff (provided in art. I, sec. 8 of the Constitution) is adjusted on imports to take the profit out of foreign sweatshop labor a t the w a t e r ' s edge. Then such foreign nations would allow their wage s t a n d a r d of living to increase, create a m a r k e t w i t h i n their own borders, and the common objective of "free t r a d e " would be reached automatically. R E S O L U T I O N S , FOREIGN TRADE AND N A T I O N A L ECONOMY Mr. Chairman, it h a s long been my conviction t h a t it is necessary for men of like mind on sound currency, foreign t r a d e and the national economy to work through t h e r own political p a r t i e s and then join forces on the floor of Congress. Accordingly, I quote the resolutions by t h e Nevada Republican State Central Committee in December 1956—the 10 Western States Republican Conference in May 1957—and the Young Republican 48-State Conference in J u n e 1957, from the Congressional Record. "THE NEVADA REPUBLICAN STATE CENTRAL COMMITTEE, DECEMBER 15, 1958 " I N T H E SENATE OF T H E U N I T E D STATES, "Wednesday, February 21, 1951. "Mr. MALONE. Mr. President, on December 15, 1956, the Republican State Central Committee met in Fallon, Nev. and passed the following resolution reaffirming the three basic principles of Government embodied in the Constitution of t h e United States. 102 DEBT CEILING INCREASE " 'The Republican P a r t y of the State of Nevada strongly advocates the r e t u r n to constitutional government by adopting the following principles which h a v e been t h e basic tenets of t h e Republican P a r t y since its inception more t h a n 100 years ago. " 'We believe the Republican P a r t y m u s t advocate a free m a r k e t for gold, w i t h removal of all restrictions upon its purchase, sale, and ownership, and a r e t u r n to t h e t r a d i t i o n a l hard-money s t a n d a r d using gold and silver certificates redeemable in the respective metals. " 'We believe t h e Republican P a r t y m u s t urge t h e Congress of the United S t a t e s to resume its constitutional responsibility of regulating foreign commerce through t h e adjustment of duties, imposts, and excises, through its agent, t h e Tariff Commission, and allow the so-called Reciprocal T r a d e Act, which t r a n s f e r r e d such responsibility to the President, to expire in 1958. " 'We believe the Republican P a r t y should urge Congress to respect the r i g h t s of t h e individual States in all those m a t t e r s which have been historically matt e r s of State concern.' "THE REPUBLICAN REGIONAL CONFERENCE, 10 WESTERN STATES, M A Y 3-4, 1957 " I N T H E SENATE OF T H E U N I T E D STATES, ''Wednesday, May 15,1951. " T E N W E S T E R N STATES, M A Y 4, 1 9 5 7 "Mr. MALONE. Mr. President, on May 4, 1957, the Republican regional conference, a t Salt L a k e City, Utah, including the States of Arizona, California, I d a h o , Montana, New Mexico, Nevada, Oregon, Utah, Washington, and Wyoming, unanimously passed a resolution urging the Congress of t h e United States to 'allow the 1934 T r a d e Agreements Act to expire in J u n e 1958.' "Mr. President, I ask unanimous permission to include in the Record, as a p a r t of my remarks, the resolution passed by the Salt L a k e City conference. " T h e r e being no objection, the resolution 1 was ordered to be printed in t h e Record, a s follows: "FOREIGN TRADE AND T H E N A T I O N A L ECONOMY " ' W h e r e a s 34 foreign, competitive nations a r e sitting in Geneva, Switzerland, regulating our foreign t r a d e through m u l t i l a t e r a l t r a d e agreements u n d e r the auspices of t h e General Agreements on Tariffs and T r a d e ; and " 'Whereas this distribution of our foreign t r a d e between such foreign competitive nations is being carried on under the 1934 T r a d e Agreements Act, as extended (so-called reciprocal t r a d e ) : and " 'Whereas under this act more t h a n $30 billion of American capital h a s been invested in such foreign low wage s t a n d a r d of living nations to compete in American labor and investors in the textile, livestock, mining, crockery, glass, precision i n s t r u m e n t machine tool, chemical and electrochemical, a n d several h u n d r e d other fields: Therefore be it " 'Resolved, T h a t t h e 10 State Republican regional conference, including the States of Arizona, California, Idaho, Montana, New Mexico, Nevada, Oregon, Utah, Washington, and Wyoming urge the Congress to resume its constitutional responsibility of regulating foreign t r a d e and the national economy through t h e adjustment of t h e duties, imposts, a n d excises (Art. I, sec. 8) through i t s agent, t h e Tariff Commission, a n d allow the 1934 T r a d e Agreements Act to expire in J u n e 1958'." " T H E YOUNG REPUBLICAN NATIONAL FEDERATION, J U N E 20-22, 1957 " I N T H E SENATE OF T H E UNITED STATES "YOUNG REPUBLICAN NATIONAL FEDERATION CONVENTION PLATFORM FOREIGN TRADE "Mr. MALONE. Mr. President, the National Convention of t h e Young Republican National Federation, representing the 48 States of the Union, w a s held in Washington on J u n e 20-22,1957. 1 The word resolution was stricken in the adoption by the conference. DEBT CEILING DECREASE lOS "Mr. President, I ask unanimous consent to h a v e printed a t this point in t h e Record a resolution relating to foreign trade, which is a p a r t of t h e platform of the Young Republican National Federation for 1957 and 1958. "There being no objection, t h e resolution w a s ordered to be printed in the Record, a s follows: "IMMEDIATE KEVIEW OF TAEIFF LEGISLATION " 'We know t h a t behind t h e shield of our collective defense arrangement, there m u s t be growth and development or t h a t shield will be a paper one. We support t h e a d m i n i s t r a t i o n in its advocacy of t r a d e policies which promote the interchange of goods to m u t u a l advantage. Under no condition, however, should such a n interchange of goods be to the detriment of our American industrial, mining, processing, and developing segments of the economy, ending with a r e s u l t a n t loss in operation and income to both employer and employee. F u r thermore, we call for an immediate review of tariff legislation to bring relief to hard-hit American industries.' "CONGRESS TO RETAIN CONTROL " 'We believe effective control over foreign t r a d e and t h e t r a d e agreements program should be retained in t h e Congress.' " YOUNG R E P U B L I C A N OFFICERS FOR 1 9 5 7 - 5 8 J o h n Ashbrook, chairman, Johnstown, Ohio. J e r r i Kent, cochairman, Johnson, Tenn. F r e d L. Dixon, treasurer, Washington, D. C. Roseann Biwer, secretary, W a u k e s h a , Wis. Sally Liston, assistant secretary, Phoenix, Ariz. Homer Jackson, auditor, Birmingham, Ala. YOUNG R E P U B L I C A N N A T I O N A L FEDERATION REGIONS BY STATE AND TERRITORIES Region I : Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut. Region I I : New York, New Jersey, Pennsylvania, Delaware. Region I I I : Virginia, Kentucky, District of Columbia, Maryland, West Virginia. Region I V : South Carolina, Georgia, Florida, Tennessee, P u e r t o Rico. Region V : Ohio, Indiana, Illinois, Michigan. Region V I : Alabama, Louisiana, Mississippi, Arkansas, Texas, Canal Zone. Region V I I : Missouri, Nebraska, Kansas, Iowa, Oklahoma. Region V I I I : North Dakota, South Dakota, Minnesota, Wisconsin. Region I X : Alaska, Oregon, Washington, Idaho, Montana. Region X : California, Nevada, Arizona, H a w a i i . Region X I : Utah, New Mexico, Wyoming. OTC AND ITO The Organization for T r a d e Cooperation (OTC) now before t h e W a y s and Means Committee of the House and the Finance Committee of the Senate is a successor to t h e I n t e r n a t i o n a l T r a d e Organization ( I T O ) rejected by t h e Congress in 1951. I t is a "trick" bill. If approved, Congress would approve t h e regulation of our foreign t r a d e and the national economy by the 34 foreign competitive n a t i o n s a t Geneva under the General Agreement on Tariffs a n d T r a d e . If Congress does not approve it the Geneva regulation continues u n d e r the 1934 T r a d e Agreements Act as extended to J u n e of 1958 a n d now in effect. CONGRESS REGAIN I T S C O N S T I T U T I O N A L R E S P O N S I B I L I T Y Congress can regain its constitutional responsibility to regulate foreign t r a d e and the national economy through allowing the 1934 T r a d e Agreement* Act to expire in June, 1958. 104 DEBT CEILING INCREASE T H E CONTEST T h e contest is between the American workingmen a n d investors working for American wages and paying American taxes, as opposed to the i n t e r n a t i o n a l investor paying t h e foreign low s t a n d a r d of living wages and no American taxes. T h e Congress can stop inflation and r e t u r n to honest money t h r o u g h a reorganization of the F e d e r a l Reserve System. T h e Congress can stop amending the Constitution by t r e a t y or executive agreement (such as the S t a t u s of Forces T r e a t y ) by the simple expedient of withholding approval or by the adoption of an amendment to t h e Constitution prohibiting such procedure. By proper future legislation Congress can stop the u s u r p a t i o n of t h e r i g h t s of the States. . I t is high time t h a t the Members of Congress in both the Senate and t h e House take a long look a t the 24-year picture t h a t they have built through passing socalled emergency legislation a piece a t a time (as A b r a h a m Lincoln so aptly said more t h a n 100 years ago "all * * * exactly adapted to their respective places") thereby destroying the Constitution and with it the United States of America. (Whereupon, at 5 p. m., the committee adjourned subject to call.) DEBT CEILING INCREASE T U E S D A Y , J A N U A R Y 28, 1 9 5 8 UNITED STATES SENATE, COMMITTEE ON FINANCE, Washington, D. G. The committee met, pursuant to recess, at 10:15 a. m., in room 312, Senate Office Building, Senator Harry Flood Byrd (chairman) presiding. Present: Senators Byrd (chairman), Kerr, Frear, Anderson, Martin, Williams, Jenner, Malone, Gore, and Bennett. Also present: Elizabeth B. Springer, chief clerk. Percival F. Brundage, Director of the Bureau of the Budget. The CHAIRMAN. The committee will come to order. Mr. Brundage, will you come forward, sir, and take a seat. Mr. Brundage, we are very happy to have }^ou before us as Director of the Budget and we thank you for coming. You have been asked to come here to testify today in connection with the administration's request for a temporary increase in the statutory debt ceiling of $275 billion to $280 billion expiring June 30, 1959. This is a request on which the Director of the Budget should be heard. When we speak of the budget, most people think in terms of appropriations and expenditures. Actually, a budget must have two sides—the revenues and expenditures. I believe one of the fundamental weaknesses of our deliberations on the fiscal problems in Congress is that we seldom are able to consider the budget as a whole, the receipts and expenditures at the same time. Consideration of both sides of the budget simul taneously in connection with this debt-ceiling proposal is certainly very desirable. Now, before I ask you some questions, I want to compliment you on the improvement you have made in the presentation of the summary and detailed material in the budget document. I reserve the right, however, to disagree with some of the recommendations. But I do want to commend you for the more comprehensive summary tables, the more concise detail, and the arrangement of the budget. All of this is greatly improved; and the material is much better presented. Senator M A R T I N . Mr. Chairman, before you proceed with your questions, may I make just a brief statement. It is not a question, and it is not intended as a criticism or anything of that kind. But, Mr. Chairman, I have often thought that we are not doing our full duty as a Congress without having before us, before we submit anything to the President for his approval, the complete appropriations, along with as complete an analysis of revenues as is possible to make. We would not submit appropriations to the President for approval until we felt that we had sufficient revenues to take care 105 106 DEBT CEILING INCREASE of them, or we had come to the conclusion that additional deficit financing was unavoidable. It seems to me that that is a responsibility that Congress has, but it is impossible to carry that out unless we have before us all of the appropriations before any of them are sent to the President for approval. That is no more criticism of the Executive than it is of Congress, but it is the way we have been doing these things since the beginning of this Government. Now, some of the States give the governor an opportunity to veto certain items, but I am not so sure whether that is entirely sound, because the expenditures are really a responsibility of Congress. Thank you very much. The CHAIRMAN. Thank you, Senator Martin. I am going to ask you a question which on yesterday I directed to the Secretary of the Treasury. I do this because I think an answer by the Director of the Bureau of the Budget also should be part of the record. I t is a question frequently directed at me in recent days since this request for the debt increase, following the receipt of the President's message. The question is: Why is it necessary to increase the debt ceiling by $5 billion in the next 18 months when you estimate there will be a surplus in the fiscal year 1959? STATEMENT OF PERCIVAL F. BRUNDAGE, DIRECTOR OF THE BUREAU OF THE BUDGET Mr. BRUNDAGE. Mr. Chairman, members of the committee, I am very happy to have an opportunity to appear before your committee to support the recommendations of the Secretary of the Treasury for an increase of $5 billion in the temporary debt ceiling. I do not think there is any magic in an exact amount of $5 billion, but that is the amount that I would recommend. During the last 6 months it has become clear that it is uneconomic for the Treasury to be obliged to refinance with such a narrow margin as at present, with the many uncertainties facing us today, and the fluctuating way in which our receipts come in and our expenditures have to be made as between weeks and as between months. I really believe it would be more economical to be able to finance in advance of maturity dates and to maintain larger cash balances. I will be glad to discuss this particular issue a little more, or shall I go ahead with the general question? The CHAIRMAN. YOU may go ahead and finish your statement first. Mr. BRUNDAGE. I would also like to report to this committee that since last year we have striven constantly to reduce programs that are not required by law, to hold down proposals for new programs, and to eliminate nonessential Government expenditures. I am attaching a list of the various proposals which were included by the President in his budget message this year. With the support of the Congress and the adoption of such measures, it will be impossible, in my opinion, to keep the numbers of personnel from continuing to increase and to keep the expenditure dollars from continuing to mount. I have arranged these proposals under certain headings, Mr. Chairman. The first heading is "Proposals to increase receipts." DEBT CEILING USER INCREASE 107 CHARGES In the budget message, the President indicated his belief that when the Government provides a service conferring a special quasi-commercial benefit on identifiable individuals or groups above and beyond the benefits to the public generally, it is our belief that it should charge the beneficiaries for the special service, rather than place the full burden of the cost on the general taxpayer. Accordingly, the President made several proposals in the field of "user charges." 1. Postal service.—In every year since the close of World War I I , the postal service has incurred large deficits which have placed heavy and unfair burdens on taxpa}^ers to the advantage of large users of the mails. In view of present and prospective postal deficits, legislation to authorize adequate postal rates has become one of the most urgent items of unfinished business before the Congress. To provide revenues which will more adequately meet present needs, the President proposes that the postal legislation now pending before the Congress be amended, primarily by establishing a 5-cent letter rate on all except local letters. This increase over last year's recommendation is needed to cover part of the cost of the pay increase and other rising costs. The recommended increases should result in an addition of $700 million to postal revenues in the fiscal year 1959. With the postal pay adjustment we are recommending, there will still be a postal deficit of approximately $144 million. Senator ANDERSON. Mr. Chairman, do you intend to have questions throughout, or only at the end? The CHAIRMAN. If the committee will agree, I think it probably would be better for Mr. Brundage to finish his statement and then ask the questions or whatever you wish. Senator ANDERSON. Well, the statement is made that they charge the beneficiaries for the special services rather than place the full burden on the general taxpayer. Then you turn and recommend an increase in the letter rate. Is it the letter rate that has been causing the deficits, or is it the junk mail and the newspapers and magazines? Mr. BRUNDAGE. Well, it is both, sir. The first class does not——• Senator ANDERSON. Then, why did he not recommend both? Mr. BRUNDAGE. Well, we are. We are recommending increases all along the line, sir. The CHAIRMAN. Could you give a fuller explanation of the different classifications in which you recommend increases. You only mention here the first-class mail. Senator CARLSON. Mr. Chairman, I might say that the Postmaster Genera] is testifying right at this moment before that committee, and he is going into detail. I attended the hearing the other morning, but I thought that I ought to come up here this morning. 1 am on both committees. But he has gone into that in quite a bit of detail, and he is being questioned down there this morning. Senator ANDERSON. We can get that testimony. Mr. BRUNDAGE. The rate is before the Senate, sir. And this is the only change from last year. It is the same bill with a change in the firsi-class from 4 cents to 5 cents for out-of-town mail. The other provisions are the same in the rate bill which was passed by the House and is before the Senate committee. 21297—58 S 108 DEBT CEILING INCREASE 2. Aviation.—-Mr. Chairman, the Federal Government provides a wide range of special services benefiting private users of the airspace. I t is increasingly appropriate that these users pay their fair share of the costs. The cost of new facilities alone will total $1 billion over the next few years and annual operating costs to the Federal Government of about $200 million at present are likely to be doubled in 5 years. As first steps toward this end, it is proposed that a tax of 3% cents a gallon be levied on jet fuels and that taxes on aviation gasoline be increased to 3% cents a gallon from the present 2 cents, with increases of three-fourths cent per year for 4 years in both taxes up to 6% cents a gallon. The receipts from taxes on aviation gasoline, which now go into the highway trust fund (3 cents per gallon of which 1 cent is later refunded), should be kept in the general revenues to help finance the operations of the airways. I might say, Senator Anderson, that I was trying to boil this down so as not to take too much of your time. Senator ANDERSON. I realize you are. Mr. BRUNDAGE. I am glad you made that point about the postal rates, because the recommended increases are not only for first-class mail. 3. Other.—The budget message also recommended that legislation be enacted to raise patent fees, and to charge employers of longshoremen for the costs of administering disability compensation. In addition, all Government agencies have recently been instructed, at the President's direction, to prepare legislative proposals generally designed to remove present restrictions or limitations on their authority (1) to recover full cost to the Government of services that provide special benefits to individuals or groups and (2) to obtain a fair market value for the use or sale of federally owned resources or property. These proposals will cover all areas in which existing legislation prohibits charges or fees, and areas in which existing legislation is silent on the subject of charges but where the agency considers an expression of congressional policy desirable prior to initiating charges. Examples of areas of Government activity which are being considered are licensing; use of water navigation aids and facilities; publications; maps and navigation charts; recreation and tourist facilities; grazing; oil, gas, and mineral leasing; and mining claims. Senator M A R T I N . Mr. Chairman, just to clarify what you mean, could I ask does "use of water navigation aids and facilities" mean probably tolls for locks and dams? Mr. BRUNDAGE. Well, there are very substantial benefits demanded by segments of the population, as you know, in opening waterways and keeping them open, in the signals, and all kinds of service to navigation. Senator M A R T I N . That answers it. Mr. BRUNDAGE. I t is being studied; yes. Senator M A R T I N . That answers it. Mr. BRUNDAGE. By enactment of the President's recommendations in the 1959 budget and of additional proposals which I expect will be made to the Congress—that is, as soon as our studies are completed— we can move closer to a more equitable system of fees and charges throughout the Government. DEBT CEILING INCREASE 109 Interest rates.—Another important change which is part of the general user charge considerations, is the need for adjusting interest rates in Federal credit programs. The President is recommending the enactment of legislation which would permit greater flexibility for the Government in setting interest rates on loans it makes in the future, and which would require that, insofar as consistent with the purposes of each program, all of the costs involved be paid by the borrowers. Such legislation, by removing or reducing hidden subsidies, would make a significant contribution toward better fiscal management. It would also produce some added income. Moreover, for loan-guaranty programs, the Government should be authorized to permit interest rates high enough to attract private lenders. The President is suggesting that all statutory limitations or ceilings placed on interest rates be reviewed, and that authority be provided to vary the rates for guaranteed or insured loans in line with market conditions and under proper safeguards. Programs affected by the recommendations on interest rates include the following: 1. College housing loans.—This program was authorized in 1950; to June 30, 1957, S668 million has been committed. Private financing of college housing should be encouraged by (1) replacing the subsidized interest rates required by the present statutes with rates no less than the Government's cost, (2) authorizing Federal guaranties of college housing obligations which do not have Federal tax exemption, and (3) prohibiting direct loans where private funds are available on reasonable terms. We have been advised that as a result of the interest rate formula provided in the present law private financing has been almost dried up. 2. Special assistance mortgage purchases.—This includes such things as housing for military personnel under the Capehart Act and cooperative housing. The special assistance program was authorized in 1954; to June 30, 1957, $361 million has been committed. Repeal of the statutory requirement that all purchases by the Federal National Mortgage Association be made at par and authority for increases in interest rates on several types of mortgages—Capehart housing mortgages limited to 4 percent, for instance—will encourage private financing and reduce future reliance on the Association. Action on these recommendations will stimulate the building industry and provide more home units. 3. Rural electrification and telephone loans.—The electrification program was authorized in 1936, the telephone program in 1950. To June 30, 1957, $4 billion has been committed. The sources of capital available to the Rural Electrification Administration system would be broadened by legislation (1) to assist both electric and telephone borrowers to obtain financing from private sources where the security is adequate and the loans can be repaid within a reasonable time, and (2) to adjust interest rates on future loans to meet the Government's costs. PROPOSALS TO REDUCE EXPENDITURES On the expenditure side, adjustments are proposed in various programs which will result in savings in future years after a suitable time for amending State and local budget procedures has been allowed and 110 DEBT CEILIXG INCREASE after due notice to affected individuals. Among the programs i n volved are the following: A. First, there are programs where shifting emphasis or changing needs lessen future requirements for specific types of Federal assistance.. 1. Agriculture conservation program.—This program was authorized in 1936. To June 30, 1957, $4.4 billion has been spent, excluding crop-reduction payments in early years. The budget recommends that a program level of $125 million be authorized for the 1959 crop year, one-half the amount authorized for the 1958 program. This amount, together with other public efforts in support of soil-and-water conservation, will permit cost-sharing payments for the more permanent soil-and-water conservation practices that are needed to maintain an adequate agricultural resource base. Those practices which are a part of usual and required annual farming methods or which return immediate benefits to the farm are properly the responsibility of the farmer, rather than of the Government. 2. Grants for hospital construction.—This program (Hill-Burton) w^as authorized in 1947 and has met the most urgent postwar shortages. Appropriations totaling $1.2 billion are estimated through the fiscal year 1959. The Federal program should now be modified to meet only the most urgent situations with emphasis on specialized hospitals. 3. Veterans1 pensions.—Expenditures for this purpose increased from $883 million in the fiscal year 1956 to $951 million in 1957. Further increases are anticipated in 1958 and 1959 to $1,046 million and $1,142 million, respectively. These pensions meet needs not related to theveteran's period of service, but rather to the general hazards faced b}^ all people, that is, ill health and fluctuations of income. The President will transmit a message on veterans' affairs to the Congress with recommendations for specific adjustments and improvements in veterans programs which will enable us to discharge our national responsibilities to veterans with the greatest possible equity to all concerned. B. Second, there are programs where the administration proposes an increase in State and local participation and a decrease in the Federal proportion, but with no reduction in the total combined outlay. In two cases, recommended by the Joint Federal-State Action Committee, it is proposed that the Federal share be eliminated beginning in the fiscal year 1960, with accompanying revenue adjustments. At our last meeting of the Joint Federal-State Action Committee, it was concluded that since all the legislatures did not meet in 1959, recommendations could not be made effective in fiscal 1959 and would have to wait until 1960 so as to enable the States to pick up the responsibility. 1. Grants for construction of waste-treatment facilities.—This program was authorized in 1956; appropriations through the fiscal year 1959 are estimated to total $140 million. You will recall the original authorization was $500 million over a 10-year period. Expenditures are estimated to be $31 million in 1958 and $51 million in 1959. 2. Grants for vocational education.—Expenditures for this program which was first authorized in 1917 total about $699 million through June 30, 1957. Expenditures of $41 million are estimated in both 1958 and 1959. DEBT CEILING INCREASE 111 In four other cases, it is proposed that the Federal proportion gradually be reduced. 1. Public-assistance grants.—Expenditures for these grants on an accrual basis are estimated to increase from $1,462 million in 1956 to an estimated $1,824 million in 1959. During this period the Federal share of the total will have increased from 54.0 percent to 55.7 percent. This should gradually be reduced to 50 percent. The increase was largely due, you may recall, to an increase of the Federal share to 80 percent of the first $30. 2. Urban renewal planning and capital grants.—Expenditures for these grants (net of repayments of temporary loans) were $39 million in 1957 and are estimated to be $61 million in 1958 and $56 million in 1959. The urban-renew^al program is well under way throughout the Nation and the States and local communities should assume a share of the administrative responsibilities and financial costs more nearly commensurate with the benefits which their citizens receive. The budget recommends that in the future the local communities should share in the costs of planning from the start. I might say that the Joint Federal-State Action Committee has also accepted the recommendation that the States assume more responsibility for this program. In addition, the present formula under which the local agency pays for one-third and Federal capital grants pay for the remaining twothirds of the net project cost should be changed by providing for annual reductions, so that by the fiscal year 1962 the Federal Government would contribute not more than 50 percent of the cost of local projects. 3. Grants for schools in federally affected areas.—Expenditures for these grants totaled $1,064 million from 1950 to June 30, 1957 to help provide schools in areas in which rapidly growing Federal establishments were imposing a heavy load on existing facilities. The communities have been developed, stores have come in, and the amount ot taxable property has increased during this period. In the future, we are suggesting that Federal payments be limited to cover the children of families living and working on Federal property. Expenditures for construction, and for maintenance and operation of schools under this program are estimated to be $212 million in 1959. 4. Natural disaster relief.—From 1950 through the fiscal year 1957 $70 million has been spent for natural-disaster relief. The governors of the Federal-State Action Committee have agreed to recommend that the States absorb annual losses up to fixed amounts. Expenditures are estimated to be $18 million in 1959. C. Next we have programs where proposals are designed to free the agricultural economy from excessive controls. 1. Greater flexibility in agricultural price supports.—Expenditures for Commodity Credit Corporation price-support operations (net) are estimated to be $2.4 billion in 1959. The President has sent a special message to the Congress recommending changes in existing legislation so that the Secretary of Agriculture will be authorized to establish price supports for basic crops consistent with the increased productive capacity of our agriculture. As the Secretary of Agriculture has pointed out, we have been going through a farm revolution much like the industrial revolution 112 DEBT CEILING IXCRE^^ of 50 to 100 years ago, and the yield has been doubled, practically, in the last Senator G O R E . I might suggest that revolution is going to get worse. Mr. BRUNDAGE. (2) Soil bank acreage reserve.—The acreage reserve was authorized in 1956; through the fiscal year 1959 the total cost is estimated to be $1.4 billion. Expenditures are estimated to be $405 million in 1959. I t is proposed in the budget to terminate the acreage reserve at the end of the 1958 crop year. An increase of $125 million is recommended in the soil-bank conservation reserve program for the 1959 calendar year since more material and lasting benefits are obtained, per dollar spent, from this part of the soil bank. D. Another recommendation which should hold down budget totals is that no new projects be started in fiscal 1959 for construction of water-resource projects by the Corps of Engineers and the Bureau of Reclamation, in view of the high level of current spending resulting from the large number of new projects started during the last 3 years. E. Finally, certain previously recommended legislation is not being requested in the fiscal year 1959. Examples are general aid for school construction, major medical care insurance for Federal employees, and certain other grant programs. The CHAIRMAN. All right, sir. Mr. BRUNDAGE. I have gone over these recommendations, Mr. Chairman, because I thought that your committee, in dealing with the debt limit and the budget, the finances, were entitled to know how we were doing our best in trying to hold down the total of expenditures» The CHAIRMAN. Yes. Mr. Brundage, do you have an itemized statement of the dollar savings which would result from these particular recommendations in fiscal year 1959. Mr. BRUNDAGE. Well, it is awfully hard to convert it into dollars. The principal savings will come over the years, presenting the increases which would ordinarily occur. But we feel that there would be many billions of savings over the next 10 years. The CHAIRMAN. But you must have made some studies about it? Mr. BRUNDAGE. Yes. The CHAIRMAN. YOU should know what the savings would be in the coming budget year. Have you not got such a list? Mr. BRUNDAGE. We have an item—•— Senator K E R R . I think the Secretary put it in the record yesterday, did he not, Mr. Chairman? Did Mr. Anderson not put that in the record yesterday at my request? The CHAIRMAN. I do not think that was the complete list. I may be mistaken about it. At any rate, that was the personal view of the Secretary of the Treasury. Mr. BRUNDAGE. We have lists of items. Senator K E R R . He had a list of items of one billion nine hundred and some million dollars, and giving the detailed sources or designated places of proposed savings. The CHAIRMAN. Well, the Budget Director is the person to furnish that information. I am just wondering whether he has it available. Mr. BRUNDAGE. I do not think I have it, but I would be glad to work on it, Senator. The CHAIRMAN. The estimates were given by the Secretary of the Treasury and may have extended beyond the 1 year too. DEBT CEILING INCREASE' 113 Mr. BRUNDAGE. Yes, sir; there is a list of a great many items. I would be glad to supply the Senator with a complete list. (The requested information was subsequently furnished by Mr. Brundage in a prepared statement which he read into the record of the hearings on February 4, 1958. See p. 243.) Senator K E R R . May I have it? Mr. BRUNDAGE. Yes, sir. Senator KERR. The record of the hearing yesterday shows a tabulation of $1,999 million. The CHAIRMAN. I would like to obtain the information from the Budget Director. Mr. BRUNDAGE. I have not had a chance to speak with the Secretary. The CHAIRMAN. H O W did the Secretary of the Treasury get it if you did not have it? Mr. BRUNDAGE. Well, I have not spoken with the Secretary of the Treasury about this list, and I do not know what the list is. I do not think we gave him one. I do not recall it. The CHAIRMAN. I t is very strange that the Secretary of the Treasury would say you have reduced the budget $1,999 million if you do not know of the details that would bring that reduction about. Senator K E R R . Will the Senator yield right there for a moment? Mr. BRUNDAGE. If you will let me see it, I may know. Senator K E R R . YOU gave Congress your estimated budget for 1959, and on the basis of certain assumptions Mr. BRUNDAGE. Yes, sir. Senator K E R R . YOU said or indicated or estimated that there would be a $500 million, surplus. Mr. BRUNDAGE. That is right, Senator. Senator K E R R . NOW, as I understood the Secretary yesterday, he had merely tabulated the items that were in the estimate of reductions and expenditures recommended for 1959 as compared to 1958. Mr. BRUNDAGE. Oh, well, I could give you that as compared with 1958. Senator K E R R . Is that not your question, Mr. Chairman? The CHAIRMAN. Yes. Where the decreases that you made in the 1959 budget compared to 1958; and then I would like a statement of the increases. Mr. BRUNDAGE. That would be easy. I thought you wanted the particular savings that would be attributed to any one specific proposal. That would be a little more difficult since the budget estimates reflect spending under past commitments as well as proposed program changes. The CHAIRMAN. Well, how are you going to get the total if you do not know the specific savings? You have first got to start with the specific savings on a specific item to get the total. Mr. BRUNDAGE. We can show you what we are estimating to be spent in 1959 as compared to what we have estimated for 1958 and what we actually spent in 1957. You can have that comparison any way }^ou want it. The CHAIRMAN. D O you mean in generalities, or itemized? Mr. BRUNDAGE. I mean you can have it in as much detail as you want. The CHAIRMAN. The detail I would want is reductions in the budget of 1959 as compared with 1958, then increase in the budget for 1959 as compared with 1958. 114 DEBT CEILING INCREASE I t seems to me that it is important for this committee to know this in consideration of the pending bill. The President stated in Oklahoma City that he was going to cut the nonessential spending, wherever it was possible to do it, to make up for the increased costs in the missile field, and so forth. He likewise told the congressional leaders on December 3 at the White House in very emphatic language that he intended to do that. Mr. BRUNDAGE. Yes, sir. The CHAIRMAN. W h a t I want to know is where these cuts have been made; the recommendations for them, rather. Mr. BRUNDAGE. Where they are proposed; yes. The CHAIRMAN. In a specific fashion. What you have read to us is not specific. And in addition to that, I would like to know whether this Joint Federal-State Action Committee agreed to certain cuts in the Federal grants; as I understand it, that is predicated on the release of certain taxation to the States? Mr. BRUNDAGE. Yes, sir. (The material referred to follows:) COMMITMENTS MADE BY FEDERAL REPRESENTATIVES TO THE JOINT FEDERALSTATE ACTION COMMITTEE In reference to your inquiry concerning commitments made by the Federal representatives to the Joint Federal-State Action Committee, I should like to refer the members of the Senate Finance Committee to pages 1 through 14 of progress report No. 1 of that Committee. These pages constitute the official report of that Committee. A reading of this report will indicate that no commitments have been made with reference either to functions to be shifted or tax adjustments to be made thereby. With particular reference to your inquiry as to the proposals concerning the local telephone tax on page 11 of that report the following statement is made: "LOCAL TELEPHONE SERVICE TAX "The Joint Federal-State Action Committee believes that the local telephone service tax is a logical revenue source for State and local governments. It recommends, therefore, that the Federal tax on local telephone service be changed so as to provide a 40-percent tax credit to those States enacting a 4-percent local telephone tax, not counting taxes already levied prior to the adoption of the credit device. This T would mean that the Federal liability under the local telephone service tax w ould be discharged to the extent of 40 percent for any taxpayer paying this amount of tax to his State government. At the end of 5 years, the Federal levy should be reduced 4 percentage points automatically. "The Joint Federal-State Action Committee recommends that— " 1 . The President request Congress to take necessary action to provide up to a 40-percent Federal tax credit against the Federal local telephone service tax for States enacting or increasing such taxes, the credit arrangement to last for 5 years at which time the Federal tax will automatically be reduced by 4 percentage points. "2. The governors and the legislatures of the several States take necessary steps to avail themselves of this additional revenue source." This report consists of several recommendations to the President and the governors of the various States. In their letter of transmittal the Cochairmen of the Committee said: "The purpose of filing our first report at this time is to permit early action. The Committee urges that those recommendations requiring legislative implementation be transmitted to the Congress and State legislatures for consideration at their next sessions/' Quite clearly congressional action would be required, and is recommended, before there could be agreement to relinquish this or any other tax. The potential tax impact to the Federal Government is $148 million. This is the only tax on which an action recommendation is made. DEBT CEILING INCREASE! 115 T h e President's position concerning t h i s r e p o r t is covered in p a r t b y t h e following from his budget message: " P r u d e n t limitation of Federal activities cannot alone meet t h e whole problem of overcentralization. T h e continued strength of our Federal system also depends upon reinforcing t h e administrative and fiscal ability of t h e States to carry o u t their responsibilities. Accordingly, I suggested at t h e governors' conference a t Williamsburg, Va., in J u n e of 1957, t h a t an action group be established t o m a k e recommendations on t h i s and other aspects of the problem. A J o i n t FederalS t a t e Action Committee consisting of 10 governors and of representatives of t h e executive branch of t h e Federal Government was subsequently created. " T h e initial progress report of this Committee, made last m o n t h , recommends complete transfer of two programs to t h e States together with t h e simultaneous relinquishment of a portion of t h e local telephone service t a x which t h e Federal G o v e r n m e n t now collects. These programs are vocational education and t h e construction of waste t r e a t m e n t facilities. Legislative proposals to carry out these and future recommendations of the Committee will be t r a n s m i t t e d to t h e Congress. An orderly readjustment requires time for action by b o t h t h e Congress a n d t h e State legislatures. Consequently, t h e effect of the proposed transfers on expenditures and revenues of t h e Federal Government will occur beginning in 1960. The report also recommends increasing t h e degree of State responsibility in three other programs: u r b a n renewal planning; natural disaster relief; a n d regulating and promoting peaceful uses of atomic energy, particularly for health a n d safety. "Cooperation of this n a t u r e is a highly desirable and, in m y judgment, a long overdue experiment in public administration a n d finance. T h e success of t h e venture depends upon further cooperation among the executive branch, the Congress, t h e governors, the legislative bodies of the States, and t h e local governments involved. As for this administration, I can say t h a t the executive branch is eager, as well as willing, to do its p a r t to insure t h a t success." If t h e Congress should approve these recommendations, it would t h e n be up to t h e States further to implement t h e recommendations by affirmative action. Such State action most probably would follow congressional action in view of t h e fact t h a t most State legislatures do not meet this year. The CHAIRMAN. That should be set forth also, because that would result in a loss in revenue, is that right? Mr. BRUNDAGE. Well, the revenue would be relinquished along with the anticipated reduction in expenditures for the first year, that is, currently. As a matter of fact, in most of these programs the savings will be in the future in holding down increases, because, as I pointed out last year, as you may recall, that due to the legislation and the programs which have been approved and the necessities for national defense and for interest charges, that it is a very difficult, if not impossible, matter to make an}^ more substantial cuts in current expenditures without legislation and without——• The CHAIRMAN. YOU are talking about expenditures in the next fiscal year? Mr. BRUNDAGE. Yes; that is right. The CHAIRMAN. YOU must have somewhere in your records an estimate of what you have saved for the next fiscal year. Mr. BRUNDAGE. What we hope to save, what we are proposing to save. The CHAIRMAN. What savings your recommendations would produce. Mr. BRUNDAGE. We have a lot of that information in the budget document, of course, and it is arranged by programs and by departments. You can have it any way you like. The CHAIRMAN. D O you have an itemized list of savings that you recommended? Mr. BRUNDAGE. I will be glad to submit for the record the tables in the budget and with annotations, that is, arranged, as I say, both by departments and by programs. 116 DEBT CEILING INCREASE The CHAIRMAN. Well, could you not read it off; it is not a long list, is it? Mr. BRUNDAGE. Well, the summary shows the difference in estimated expenditures between 1958 and 1959. I t shows that from the funds appropriated to the President, the mutual security expenditures are estimated to be $3,868 million in 1958 as compared with $3,749 million in 1959, an increase of about $120 million. In the other funds appropriated to the President, there is a decrease from $405 million in 1958 to $302 million in 1959, a decrease of about $100 million. Senator KERR. In what? The CHAIRMAN. What was that reduction in? Mr. BRUNDAGE. Those are the various other funds appropriated to the President, primarily for expansion of defense production. Senator WILLIAMS. Do you have an estimate, Mr. Bundage, as to what the budget would be, assuming Congress did not enact any of these legislative recommendations? Mr. BRUNDAGE. Well, I would guess $1 billion more. Senator WILLIAMS. How much? Mr. BRUNDAGE. I would guess if we do not get any of our proposal, it would be about $1 billion more. The CHAIRMAN. But that is a guess. The Secretar}' of the Treasury says that there were savings of $1,999 million and you say $1 billion. I thought that you would come prepared today to give an itemized list of these savings as well as the increases in the budget as compared to last year that you recommended. Of course, you are not responsible for what Congress does. Senator ANDERSON. HOW can we take action on this, Mr. Chairman, before we have something like that before us? The CHAIRMAN. I do not think we can. If you would like more time, Mr. Brundage, to get that presentation of it, like you are reading it now does not provide the information in a way that we can understand. Mr. BRUNDAGE. I thought that you wanted to know the reduction in what we are proposing in The CHAIRMAN. Yes, you have given some of it in a fashion here. You have put it in your statement, but it is not complete, so we cannot estimate what are the actual savings. What we are concerned about, of course, is the question of increasing the ceiling. Now, expenditures in the period involved is one of the factors in the question of increasing the ceiling. Mr. BRUNDAGE. Yes. The CHAIRMAN. Statements that savings have been made in this budget have been highly publicized. I would like to know where the savings are in an itemized way and where the increases are. The increases in the budget, as you well know, must be considered together with the savings, is that not right? Mr. BRUNDAGE. I will be glad to prepare and submit it any way you like, Mr. Chairman. The CHAIRMAN. For proper consideration of this bill we need this information and some of us are not on the Appropriations Committee. I t would be very interesting to know exactly what saving would result from certain specific things. We would like to know also what commitments have been made to the Federal-State Committee DEBT CEILING INCREASE 117 with respect to elimination of Federal taxes in connection with reducing certain State grants, grants to the States. Mr. BRUNDAGE. Those will not affect 1959, as I explained. The CHAIRMAN. But they are commitments, are they not? (The requested information was subsequently furnished by Mr. Brundage in a prepared statement which he read into the record of the hearings on February 4, 1958. See p. 243.) Exactly how are those commitments made? I do not understand just how anybody can commit the Congress to give up taxes. I am not criticizing what you are attempting to do, but what valid commitment can be made for elimination of the telephone tax or some other? Mr. BRUNDAGE. Well, the governors cannot commit their legislatures either. I t is all a question The CHAIRMAN. Does it have to be done simultaneously? Mr. BRUNDAGE. Of our recommendation. Well, any surrender of ours would obviously not be made until Congress had approved and until the State legislatures had approved reductions. The CHAIRMAN. Would not the Congress have to approve the elimmination of taxes too? Mr. BRUNDAGE. Oh, yes. The CHAIRMAN. That would all have to be done at one time, is that not correct? Mr. BRUNDAGE. Congress would have to approve the reduction in the expenditures and also the transfer of the revenue. The CHAIRMAN. And also Congress would have to act at the same time. I do not suppose that there would be any other way to do it, and of course nobody can guarantee that this would be done. Mr. BRUNDAGE. N O , sir; these are all proposals or recommendations. The CHAIRMAN. Does the Joint Federal-State Action Committee include governors? Mr. BRUNDAGE. Yes; it is composed of the representatives of the governors and of representatives of the Federal Government. The CHAIRMAN. D O they speak for the governors? Mr. BRUNDAGE. Well, they speak for the governors' conference, and they are going to recommend when they go back to their respective legislatures. The CHAIRMAN. In a rough estimate, what reduction in Federal taxes would be required to match the proposed reduction in grants? Mr. BRUNDAGE. Well, the ones that we have actually discussed came to something over $100 million. The CHAIRMAN. That includes such items as the telephone tax, and what else? Is the telephone tax in it? Mr. BRUNDAGE. This is a proposal to transfer up to 40 percent of the telephone tax on local calls. We were not proposing to surrender any revenue except as they take over expenditures. And as I say, it is not proposed to be effective before 1960, and it is subject, of course, to approval of the Congress in both respects. The CHAIRMAN. Well, the Treasury sat in on these conferences, did they not? Mr. BRUNDAGE. Yes; the Secretary of the Treasury is Chairman of the Committee. The CHAIRMAN. T O what extent did he commit the Government to reduction in Federal taxes? 118 DEBT CEILING INCREASE Mr. BRUNDAGE. Well, he made it clear that he was speaking only for the executive branch, representatives of the President appointed to this Joint Federal-State Action Committee, and the governors made it quite clear that they were just speaking for the governors' conference. The CHAIRMAN. AS I understand you, Mr. Brundage, you are not prepared today for what the committee requires. There is no use of reading over the budget; that is not sufficient for our purposes. What we want is a direct statement signed by you, delivered by you in person, as to these savings, item by item, because that is the only way we can get at it; and then another statement of the increases you have made in the budget, item by item. Mr. BRUNDAGE. Yes, The CHAIRMAN. And sir. then also I would like to know what these agreements are that are being made with the States. I am not opposing it, but I just do not see how anybody can commit Congress to release certain taxes and transfer them to the States on a permanent basis. I do not think it can be done. Is that the pleasure of the committee? Senator M A R T I N . Mr. Chairman, I think the thing that you suggest there is very important, that we have those three different items, and compiled in separate tables, and then we would all have them. There is a congressional responsibility there. There is no question that any Federal taxes transferred to the States will require an act of Congress. B u t on these things, Mr. Chairman, you will remember you and I were on a committee, 10 years ago, trying to do this very thing. I t ought to be done. We worked on it. I think we met 2 or 3 different years, but nothing }^et has been done about it. The CHAIRMAN. IS it the pleasure of the committee to interrogate the Budget Director on other points or wait until we get his tables on these savings? I thought perhaps we could get that this morning, but as I understand it, you have not got that made up yet. Mr. BRUNDAGE. N O , not in the form in which you asked for it. The CHAIRMAN. I think it is vitally important to the whole question of raising the debt limit, because a reduction of nonessential expenditures would be a way to avoid an increase in the debt ceiling, is that not right? Mr. BRUNDAGE. Well, we think that—we have made provision for what can be done administratively, and these proposals that I was outlining were those that we thought we should have the support of the Congress in. That is why I presented it in that way. The CHAIRMAN. There is a statement you can put in. What you can do administratively, and likewise what is required of Congress. With that breakdown we could get a clear picture of the matter. And you have made quite substantial increases, have you not, in certain items of the budget? You could likewise give that to the committee. Mr. BRUNDAGE. There are some increases; yes. I will separate it for you, be glad to. Senator WILLIAMS. HOW much do you have in this year's budget to take care of salary increases? Mr. BRUNDAGE. We are proposing the salary increases recommended, in essence, by the Cordiner Committee for the military, and DEBT CEILING INCREASE 119 applying the same principles to the civilian; in other words, we are increasing particularly the higher skilled, the ones that are more competitive with private industry, and then a general residual increase of about 6 percent down along the line, civilian and military. Military is limited to those that have been enlisted for 2 years. Senator WILLIAMS. What effective date did you take into consideration that these might be put in? Mr. BRUNDAGE. Well, we are assuming July 1. We are giving effect for the wiiole fiscal year of 1959, but not for 1958. Senator WILLIAMS. But not for 1958? Mr. BRUNDAGE. Not for fiscal 1958. The CHAIRMAN. HOW long would it take, Mr. Brundage, to get that information in itemized form? Mr. BRUNDAGE. Well, we have it all in the budget document. It is the compiling. We have all kinds of lists. The CHAIRMAN. I know you have got all kinds of lists. But we want the particular list of where you are going to cut these expenses. Senator ANDERSON. I think we ought to find out what things are going to be suggested, what savings are within the power of the Federal Government to do, and then go on to the things that the Congress ought to do. Senator M A R T I N . Mr. Chairman, should there not be two separate lists? Senator ANDERSON. There ought to be one list that shows what the administration proposes to do, and then one list that shows the burden placed on Congress. Senator WILLIAMS. With the projected savings listed on each one of them. Senator ANDERSON. That is exactly right. (The requested information was subsequent^ furnished by Mr. Brundage in a prepared statement wliich he read into the record of the hearings on February 4, 1958. See p. 243.) Senator ANDERSON. NOW, the postal pay increase, I think, is very definitely tied to this increase in postal revenues. I t is a matter of the budget. If you do not get any money, maybe we ought to look at it. You mentioned a while ago, the Senator from Pennsylvania, that there might be some tie between appropriations and revenue measures. Some of us have been advocating for years that no appropriation bill becomes final until the final survey of receipts. And that it has to be reduced or adjusted. You have soil-bank payments down here. In 1957, the Department of Agriculture paid, I think, $169 million to reduce the production of corn by acreage reserve payments, and got 200 million additional bushels of corn. Why was not the program stopped then? Why stop it in 1959? We know it is no good. That is something the administration can do now without the Congress. And I think we ought to have a list of the things the administration proposes to do to equalize what the chairman of the committee pointed out was clearly outlined, that there is an effort to meet the extra costs of these missiles by Government savings. The CHAIRMAN. YOU were at the White House when the President emphasized Senator ANDERSON. Certainly I wras there, and that is why I pointed out at that time all these missiles. Here is an article in the 120 DEBT CEILING INCREASE magazine called Planes, the December 1957 issue, and the first paragraph is worth reading. I t talks about the missiles have been the logical supplement to conventional airpower, and says: T o d a y there are 43 announced missile projects underway, divided into 4 categories: Air to air, 7 projects; air t o surface, 7 projects; surface t o air, 10 projects; and surface to surface, 19 projects. Now, I go deer hunting. I know there are 20 different kinds of deer rifles, different calibers, different makes. But one gun does the job if I shoot straight. And I do not need to take all 20 guns with me. Senator M A R T I N . M a y I break in? Will you yield just a moment? Senator ANDERSON. Yes, sir. Senator M A R T I N . YOU are making an awfully good point there. The whole thing in defense is the personnel, and we have not heard a single word asserted relative to personnel in this matter of defense that we are now discussing, where we are contemplating increasing the budget by 2 or 3 billion. If you do not have the proper personnel, the man that can shoot straight, it does not make any difference how good a gun he has or anything else, we are not going to have good defense. Senator ANDERSON. Mr. Brand age, I am not trying to be critical of you. I know you are a good, conscientious Budget Director and did a good job on that program. But we can save all the money we need for the missiles program out of the missiles program. All we have got to do is chop down the things everybody knows are no good. But someone comes along and says: "Well, the Navy has one that does it; why should not the Army have one, or the Air Corps?" I asked a man in charge of some Navy work when he was talking about the Talos missile, which is a pretty good missile. I said: "Is the Army using it?" "Well, they plan to." "Air Corps going to use it?" "Well, Air Corps has got their own." And that is the whole story. Everybody has got to have his own gun, but he cannot take his own gun; he cannot just take a Winchester, he has got to have a Savage 30-30; he has got to have a 270 and a 308, and he has got to have every kind, when all he needs is just one of them. And it applies all the way along the line. If they are not going to do that, then I think they ought to come in and tell us where they are going to save. They could save it in the missiles program itself to take care of all the missiles work. If they are not going to do it, I think they ought to come in here and tell us where they are going to do it. Mr. Chairman, the Army developed some time ago an atomic cannon. The CHAIRMAN. Yes. Senator ANDERSON. The Army was pretty well told when they brought it before the Joint Commission on Atomic Energy that we could see no possible use for it. They went right ahead and spent several—well, I do not know whether it is still classified or not. Let me say they spent a quarter of a million dollars on it in the equipment and the shells. You find out how many of them are in use today. They put them over in Germany because they did not dare face the people in this country and tell them about it. The last report came in and said it is the only mobilized roadblock that has ever been developed. Did they stop there? No; they have gone DEBT CEILING INCREASE 121 ahead with another device now that the Navy has asked for that the Navy knows it can never use, a shell that there is no gun to fire it in and has not been since they put the battleships in mothballs. But millions and millions and millions have to be poured out in that. I would like to know where they are going to save this money. I t is not too hard to find places to do it. Senator GORE. I am going to oppose balancing the budget by diverting funds from the highway trust fund, Mr. Brundage. You propose to divert $68 million a year from the highway trust fund, while at the same time the President talks about the necessity for building better roads and Mr. Tallamy says it is going to be necessary to stretch the 13-year program to a 20-year program. And when we actually measure all of the facts, it looks more nearly like a 25-year stretchout than a 20-year stretchout. You had better find someplace to balance your budget other than out of the highway trust fund. Mr. BRUNDAGE. Well, we were proposing to transfer this gas tax on aviation fuel. Senator G O R E . I know what you propose; I am just telling you I am going to oppose it. Mr. BRUNDAGE. Well, there is no particular reason why an airplane should pay a tax on its fuel in order to build roads. T h a t was the fmrpose of the suggestion. Senator GORE. Well, that is not the only diversion you propose. Senator B E N N E T T . Mr. Chairman. The CHAIRMAN. Senator Bennett. Senator B E N N E T T . D O you, as chairman of the Committee on Nonessential Expenditures, have a breakdown of the unexpended balances in terms of the agencies or services or programs? The CHAIRMAN. Yes, sir. Senator B E N N E T T . Could that be revised and brought in for the record of this committee? Senator K E R R . He has got it in a very revised condition. The CHAIRMAN. The aggregate is about $70 billion. Senator B E N N E T T . I know the total, but do you have the breakdown? Yesterday a great deal was made of the fact that this $70 billion is hanging over our head, and I think for the record we should know how that is allocated among the various departments and agencies, if possible. Should I properly ask the chairman if that can be supplied? The CHAIRMAN. I shall be pleased to furnish the information you desire. Senator M A R T I N . I think that is very important. (The material referred to follows:) Summary: Analysis of unexpended balances (by budget document chapters) to [In t h o u s a n d s ] Fiscal year 1959 B a l a n c e , start of fiscal year 1957 (actual) Balance, start of fiscal year 1958 (estimated) Balance, s t a r t of fiscal year 1959 (estimated) Budget document chapters Unobligated Legislative b r a n c h The Judiciary E x e c u t i v e Office of t h e P r e s i d e n t F u n d s a p p r o p r i a t e d to t h e P r e s i d e n t I n d e p e n d e n t offices G e n e r a l Services A d m i n i s t r a t i o n Housing and H o m e Finance Agency D e p a r t m e n t of A griculture D e p a r t m e n t of C o m m e r c e D e p a r t m e n t of Defense, m i l i t a r y functions D e p a r t m e n t of Defense, civil functions^. D e p a r t m e n t of H e a l t h , E d u c a t i o n , a n d Welfare D e p a r t m e n t of t h e I n t e r i o r D e p a r t m e n t of Justice D e p a r t m e n t of L a b o r P o s t Office D e p a r t m e n t D e p a r t m e n t of S t a t e D e p a r t m e n t of t h e T r e a s u r y D i s t r i c t of C o l u m b i a . . Allowance for contingencies Total, Total Unobligated Total Unobligated Total Total 770 050 602 009 35Q, 150 7, 860, 685 63, 076 5,179, 793 2,230, 789 165,012 34, 446, 770 362, 728 39,145, 400 685, 410 23, 457, 321 470, 009 16, 321, 679 230, 742 9, 584, 921 65, 364 33, 794, 472 347, 387 890, 774 346, 857 19, 775 8,399 219,310 77, 895 2, 876, 532 39,815 200, 000 2, 792, 905 583,154 230,190 465, 033 1,121 207,187 8, 618,926 35,829 1, 339, 000 2,192, 917 433, 436 214, 739 447, 025 1,121 180, 705 8, 540,001 660, 686 229,229 13, 098 5. 376 -16,980 47, 795 50, 694 10,380 47,917 29, 354 10,228 1,388 9,403 4, 293 2,786,235 38,035 830, 024 254, 931 19, 928 21, 031 231, 453 56, 582 2, 889, 490 38, 035 400, 000 69, 202,070 72, 452, 201 49, 670, 963 24, 262, 847 28, 482, 516 67, 223, 206 693, 380 8,960, 847 459, 988 4,136, 728 231, 935 2, 229,139 410.611 8. 377, 938 145, 534 5, 654, 423 2, 845, 937 174, 341 $157,125 2,716 688 3. 547, 903 11, 861, 009 349, 604 8, 617, 546 4, 509, 078 667, 546 15, 358, 097 140, 766 40, 208, 675 327,127 13, 235, 271 163, 258 36,910,197 351, 330 10, 344,116 150, 407 146, 207 164, 293 9,979 3,857 22,190 14, 360 2, 852,142 30, 887 601, 559 311,585 18,198 89,397 213, 769 43, 587 2,926, 880 30, 887 144, 679 160, 698 12, 064 2. 967 17, 240 16, 883 2,809, 214 37, 687 769,344 351,185 17, 899 8.165 212, 735 92, 525 2,894, 339 37, 687 103, 528 103,098 11, 083 303 14, 240 10, 648 2, 787, 869 39, 815 68, 845, 992 Unobligated $121, 842 3,161 800 3, 344, 318 11,701,797 270, 538 8,580,411 3, 556, 494 760, 512 $181, 752 2,734 692 4, 944, 312 10,931, 532 530, 803 6,905,113 3,070, 480 633,168 73, 007, 244 Balances of prior authority $41,542 2.716 660 3,184, 639 1, 357, 415 138,152 319.765 1, 389, 957 275, 302 50 1, 356, 900 7, 866. 357 275,128 4, 872, 091 1, 328, 350 360, 981 $144,032 N e w obligational authority Balance, s t a r t of fiscal year 1960 (estimated) $84, 631 42,912 11,103 985, 244 6. 914, 653 274, 838 134, 912 3, 591. 379 527. 788 $195,145 2,275 743 4, 880, 932 11,100, 569 881,843 5, 540, 058 2, 047, 000 3, 587,015 $147,454 $103, 491 Requested n e w obligational authority E s t i m a t e d expendit u r e s from— $98, 46, 11, 3, 948, 639 073 875 600 I', 2lT 428 335, 638, 4,106, 951, 27, 229 $49, 873 1,139, 000 w H O o o w > LEGISLATIVE BRANCH ANALYSIS OF UNEXPENDED BALANCES BY ORGANIZATION UNIT AND ACCOUNT TITLE [In thousands] Balance, start of 1957 Balance, start of 1958 Fiscal year 1959 Balance, start of 1959 Estimated expenditures from— New obligational author- New obli- Balances gational of prior ity author- authority ity Organization unit and account title Unobligated Total Unobli- Total Unobligated Total Balance, start of 1960 Unobligated Total o SENATE Current authorizations $4,815 6,484 $6,600 $22, 288 $19,150 9,021 8,810 8,900 41,811 36,200 $650 $6,700 3 o 9,000 o HOUSE OF R E P R E S E N T A T I V E S Current authorizations __ M _. > A R C H I T E C T OF T H E CAPITOL Current authorizations: Office of the Architect of the Capitol: Salaries Contingent expenses _ Capitol Buildings and Grounds: Capitol Buildings __. Capitol Grounds Subway transportation, Capitol and Senate Office Buildings. Senate Office Buildings _ _ Legislative garage House Office Buildings $19 103 1 132 • 2 243 50 234 40 9 10 894 318 6 1,822 42 1,283 844 296 6 1,642 40 1,178 50 22 132 2 100 180 2 105 LEGISLATIVE BRANCH—Continued to ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITIE-Continued [In thousands] Balance, start of 1957 Balance, start of 1958 Organization unit and account title Unobligated Total Unobligated Total Fiscal year 1959 Balance, start of 1959 Unobligated Total Balance, start of 1959 Estimated expenditures from— New obligational author- New obli- Balances ity gational of prior author- authority ity Unobligated Total w a A R C H I T E C T OF T H E CAPITOL—Continued Current authorizations—Continued Capitol Buildings and Grounds—Continued Acquisition of property, construction and equipment, additional House Office Building: Liquidation of contract authorization _ Contract authorization Capitol Power Plant . . , ,„ Additional office building for the United States Senate: Liquidation of contract authorization Extension of the Capitol: Liquidation of contract authorization Contract authorization Changes and improvements, Capitol Power Plant: Contract authorization Capitol Building, Senate and House roofs and chambers Reconstruction, repair, alteration, and improvements, Capitol Grounds _ _ 3 $669 95,000 149 $47 85,000 89 1,310 13,864 5,250 4,962 37,600 1,236 1,196 14 $38,548 50 19 ! $1,886 77,500 J 200 I $5,745 85,000 162 $62,406 1,058 10,592 88 1,588 1,500 4,990 37,600 14,839 25,600 16,609 25,600 3,225 25,600 14,820 25,600 6,315 3,051 1,196 14 2,221 730 2,732 730 681 730 2,043 730 476 20 19 21 } 1 $24,386 $1,769 $1, 557 i $12,146 $55,000 212 88 88 25,600 8,505 25,600 200 2,043 J. ] 730 Library buildings and grounds: Structural and mechanical care. Furniture and furnishings Total, Architect of the Capitol 583 26 361 25 135,043 163,136 129,515 148,086 92,730 275 20 747 90 477 | 65 124,985 7,264 6,379 587 587 270 25 275 20 35,062 I 37,834 90,808 BOTANIC G A R D E N Current authorizations: Salaries and expenses Relocation of greenhouses 13 Total, Botanic Garden.. 972 13 15 19 374 90 59 195 413 120 | 32 4 307 129 34 5 376 « LIBRARY OF CONGRESS Current authorizations: Salaries, and expenses _ Copyright Office: Salaries and expenses Legislative Reference Service: Salaries and expenses Distribution of catalog cards: Salaries and expenses Increase of the Library of Congress: General increase of the Library of Congress Increase of the law library Books for the Supreme Court.. _ _ Books for the blind: Salaries and expenses _ Organizing and microfilming the papers of the Presidents: Salaries and expenses Intra govern mental funds: Advances and reimbursements Total, Library of Congress. 325 78 54 180 21 5 123 | 34 5 I 252 I 17 13 349 95 55 184 J 375 90 59 195 6,154 1,274 1,258 1,778 120 | 33 4 420 128 , 34 4 307 320 | 90 30 1,355 50 I 1,071 406 394 1,667 1,586 5,742 | 1,181 1,192 | 1,554 199 I 58 I 26 I 979 ! 224 O H 3 CO 4 46 j 347 12,309 j 10,977 1,228 I to LEGISLATIVE BRANCH—Continued ANALYSIS OF UNEXPENDED BALANCES—Continued ts3 BY ORGANIZATION UNIT AND ACCOUNT TITLE—Continued [In thousands] Balance, start of 1957 Balance, start of 1958 Balance, start of 1959 Fiscal year 1959 Estimated expenditures from— Organization unit and account title Unobligated Total Unobligated Total Unobligated Total New obligational author- New obli- Balances ity gational of prior authorauthority ity Balance, start of 1960 Unobligated Total W. Hi GOVERNMENT PRINTING OFFICE O Current authorizations: Printing and binding Salaries and expenses, Office of the Superintendent of DocuIntragovernmental funds: Government Printing Office revolving fund Total, legislative branch $4,971 $2,646 $3,231 $10,700 $7,990 $2,530 $3,410 404 379 347 3,295 2,982 346 314 & • • $12,382 11,717 $14,261 13,667 $10,761 11,461 12,382 17,092 14,261 16,692 10,761 15,039 13,995 147,454 195,145 144,032 181,752 103,491 157,125 $6,415 128,654 12,385 $44,362 139,046 11, 737 $18,215 111, 330 14,487 $56,349 111,330 14,073 $3,994 88,736 10,761 147,454 195.145 144,032 181,752 103,491 -1,639 $12,039 19,900 10,972 1,237 12,039 13,624 98,639 84,631 41,542 49,873 121,842 $41,440 103,830 | $98,639 11,855 $84,631 RECAPITULATION Enacted or recommended in this document: Appropriations Revolving and management funds: Intragovernmental funds.. Total, legislative branch 1 . . 157,125 98,639 84,631 ( $88 *$21,760 $41,542 | 37,746 89,835 I 12,039 110, 247 41,542 Excludes capital transfer (payment of profits to Treasury), in 1959 of $3,200 thousand. ' Excludes amounts no longer available in 1959 of $4,548 thousand. 49,873 121,842 a w GQ THE JUDICIARY ANALYSIS OF UNEXPENDED BALANCES BY ORGANIZATION UNIT AND ACCOUNT TITLE [In thousands] Balance, start of 1958 Balance, start of 1957 Fiscal year 1959 Balance, start of 1959 Estimated expenditures from— Organization unit and account title Unobligated Total Unobligated Total Unobligated Total New obligational author- New obli- Balances gational of prior ity author- authority ity Balance , start of 1960 Unobllgated Total td S U P R E M E COURT OF T H E U N I T E D STATES Current authorizations : Salaries Printing and binding, Supreme Court reports Miscellaneous expenses Care of the building and grounds Automobile for the Chief Justice Total, Supreme Court S - _ $57 35 9 241 1 $57 48 8 88 $59 40 9 10 1 $1,249 90 74 317 6 $1,191 50 66 305 5 $58 40 9 10 1 $58 40 8 12 1 342 200 119 1,736 1,617 118 119 16 20 22 308 285 22 23 120 73 SI 700 648 51 C O U R T OF CUSTOMS AND P A T E N T APPEALS Current authorizations: Salaries and expenses CUSTOMS COURT Current authorizations: Salaries and expenses . _ 52 . r;1 •• • j e s a 3 THE JUDICIARY—Continued to ANALYSIS OF UNEXPENDED BALANCES—Continued QO BY ORGANIZATION UNIT AND ACCOUNT TITLE-Continued [In thousands] Balance, start of 1958 Balance, start of 1957 Fiscal year 1959 Balance, start of 1959 Estimated expenditures from— Organization unit and account title Unobligated Total Unobligated Total Unobligated Total New obligational author- New obligational ity authority Balances of prior authorizations Balance, start of 1959 Unobligated Total O g C O U R T OF CLAIMS Current authorizations: Salaries and expenses Repairs and improvements Total, Court of Claims .. ___ $42 2 $38 $45 $813 9 $765 9 $45 $18 44 38 45 822 774 45 48 219 646 345 326 28 310 735 344 295 28 362 147 183 48 988 8,967 18,012 4,528 2,784 1,058 48 988 241 37 9,358 19,291 4,988 3,098 1,101 241 37 391 1,279 460 314 43 109 128 2,035 2,636 1,855 2,384 109 128 180 252 COURTS OF A P P E A L S , D I S T R I C T COURTS, AND O T H E R J U D I C I A L SERVICES Current authorizations: Salaries of judges _ Salaries of supporting personnel Fees of jurors and commissioners Travel and miscellaneous expenses Administrative Office of the United States courts. _ Air conditioning courtrooms, offices, and other rooms Salaries of referees (indefinite special account) ^ 38 151 a Proposed for later transmission (under existing legislation): Salaries of judges.. Fees of jurors and commissioners Travel and miscellaneous expenses Salaries of referees (indefinite special account) E xpenses of referees (indefinite special account) Total, courts of appeals, district courts, and other judicial services Total, the judiciary. 300 430 59 65 75 1,753 2,404 2,480 300 430 59 65 75 42,507 39,588 2,480 2,275 2,734 2,716 46,073 42,912 2,716 $2,275 $2,734 $1,787 $46,073 $42,912 $1,787 2,919 = = = 3,161 RECAPITULATION Enacted or recommended in this document; Appropriations ; Proposed for later transmission: Appropriations Total, the judiciary. S3 929 2,275 2,734 2,716 $3,161 a 3,161 Q 929 46,073 42,912 2,716 E S o w > 1 EXECUTIVE OFFICE OF THE PRESIDENT ANALYSIS OF UNEXPENDED BALANCES BY ORGANIZATION UNIT AND ACCOUNT TITLE [In thousands] Balance, start of 1958 Balance, start of 1957 Fiscal year 1959 Balance, start of 1959 Estimated expenditures from— Organization unit and account title Unobligated Total Unobligated Total Unobligated Total New obligational author- New obli- Balances gational of prior ity author- authority ity Balance, start of 1960 Unobligated Total C O M P E N S A T I O N OF T H E P R E S I D E N T Current authorizations: Compensation of the President $150 $150 T H E W H I T E HOUSE O F F I C E Current authorizations: Salaries and expenses.. $131 $102 $129 2,052 1,920 $113 $148 126 145 145 1,500 1,310 140 195 SPECIAL P R O J E C T S Current authorizations: Special projects E X E C U T I V E MANSION AND GROUNDS Current authorizations: Executive Mansion and Grounds Addition to Executive Mansion Total, Executive Mansion and Grounds 18 89 415 394 16 21 $50 11 56 16 $89 89 107 50 67 16 415 394 16 21 _- B U R E A U OF T H E B U D G E T Current authorizations: Salaries and expenses - -. 192 195 210 4,205 3,981 209 225 — 15 14 15 375 360 15 15 18 14 42 700 658 42 42 COUNCIL OF ECONOMIC ADVISERS Current authorizations: Salaries and expenses NATIONAL S E C U R I T Y COUNCIL Current authorizations: Salaries and expenses _ w O F F I C E OF D E F E N S E MOBILIZATION Current authorizations: Salaries and expenses Defense rental areas division— O 137 149 4 126 2 2,420 2,275 120 2 151 137 153 128 2,420 2,275 122 151 _ Total, Office of Defense Mobilization 125 o P R E S I D E N T ' S ADVISORY C O M M I T T E E ON G O V E R N M E N T ORGANIZATION Current authorizations: Salaries and expenses o - 2 2 3 58 55 3 3 692 688 11,875 11,103 660 800 w m P R E S I D E N T ' S COMMISSION ON VETERANS' PENSIONS Current authorizations: Salaries and e x p e n s e s . . - _ - - - f c - ^ . ^ - - _ . . ^ - _ i . . ^ - i . - . ^ - . . - - ^ . Total, Executive Office of the President _—. 15 89 743 50 co EXECUTIVE OFFICE OF THE PRESIDENT—Continued CO to ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE-Continued [In thousands] Balance, start of 1957 Balance, start of 1958 Balance, start of 1959 Organization unit and account title Unobligated Total Unobligated Total Unobligated Total Fiscal year 1959 Estimated expenditures from— New obligational author- New obligational ity authority Balances of prior authorizations Balance, start of 1959 Unobligated Total O m RECAPITULATION s Enacted or recommended in this document: $89 $743 $50 $692 $688 $11,875 $11,103 $660 $800 a F U N D S A P P R O P R I A T E D TO T H E PRESIDENT ANALYSIS OF UNEXPENDED BALANCES BY ORGANIZATION UNIT AND ACCOUNT TITLE [In thousands] Balance, start of 1958 Balance, start of 1957 Fiscal year 1959 Balance, start of 1959 Organization unit and account title Unobligated Unobligated Total Total Unobligated Balance, start of 1960 Estimated expenditures from— Total New obligational author- New obli- Balances of prior gational ity authorauthority ity Unobligated Total o D E F E N S E AID Current authorizations: Defense aid, special fund .. _ _ $256 $256 $83 $218 $83 $83 22,774 29,268 13,123 20,284 18,122 27,284 $83 $83 I DISASTER R E L I E F Current authorizations: Disaster relief _ $18,000 9,284 55 70 E M E R G E N C Y F U N D FOR T H E PRESIDENT Current authorizations: Emergency fund for the President, national defense. 40 275 55 $1,000 $930 > a E X P A N S I O N OF D E F E N S E PRODUCTION Public enterprise funds: Revolving fund, Defense Production Act: Cash _. Authorization to expend from debt receipts. Total, expansion of defense production 262,276 13,811 956,271 470,725 34,675 805,570 170,502 34,769 435,700 262,276 970,082 470,725 840,245 170,502 470,469 | 271,864 271,864 r 1 59,499 34,619 163,986 59,499 198,605 00 CO F U N D S APPROPRIATED TO THE PRESIDENT—Continued ANALYSIS OF UNEXPENDED BALANCES—Continued CO BY ORGANIZATION UNIT AND AGCOUNTTITtE-Coiitmued [In thousands] Balance, start of 1957 Balance, start of 1958 Balance, start of 1959 Organization unit and account title Unobligated Total Unobligated Total Unobligated Total Fiscal year 1959 Estimated expenditures from— New obligational author- New obligational ity authority Balances of prior authority Balance, start of 1960 Unobligated Total to H EXPENSES OF MANAGEMENT IMPROVEMENT Current authorizations: Expenses of management improvement O $135 $ 238 $519 $528 $289 $323 $279 $44 MUTUAL SECURITY Current authorizations: Military assistance: Military assistance1 | Common-use items _ Defense support: Defense support Defense support, Europe , Defense support, Near East and Africa Defense support, Asia _ Defense support, Near East, Africa and South Asia. Mutual defense financing, defense support, economic and technical assistance, Europe.. Mutual defense financing, defense support, economic and technical assistance, Formosa and the Associated States of Cambodia, Laos, and Vietnam ' O to. 195,500 1,958,171 538,800 2,000,402 1,117,462 36,000 1,065,601 25,000 w 1,093,124 1,846,000 339,822 809,601 575,000 234, 601 Economic, technical, and other assistance: Developmen t assistance Technical cooperation, general authorization United Nations expanded program of technical assistance Technical cooperation programs of the Organization of American States Special assistance, general authorization... Special assistance in joint control areas in Europe, Intergovernmental Committee for European M igra t ion. United Nations refugee fund Escapee program United Nations children's fund United Nations Relief and Works Agency North Atlantic Treaty Organization Ocean freight charges, United States voluntary relief agencies _ Control Act expenses General Administrative expenses Atoms for peace President's fund for Asian economic developmentDefense support, Latin America Development assistance, American Republics and non-self-governing territories of the Western Hemisphere .. Development assist ance, Asia Development assistance, Near East and Africa.. Economic and technical assistance, defense support, Asia and Pacific, other than Formosa and the Associated States of Cambodia, Laos, and Vietnam) Economic and technical assistance, Near East and Africa.. Foreign research reactor projects Mutual security loans, Export-Import Bank of Washington _ _ Ocean freight charges, surplus agricultural commodities Palestine refugee program Special economic assistance, India and Pakistan. Special Presidential*fund F U N D S APPROPRIATED TO THE PRESIDENT—Continued CO ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE-Continued [In thousands] Balance, start of 1957 Balance, start of 1958 Organization unit and account title Unobligated Total Unobligated Total Fiscal year 1959 Balance, start of 1959 Unobligated Total Balance, start of 1960 Estimated expenditures from— New obligational author- New obll- Balances ity gational of prior | authorauthority ity Unobligated Total W o M U T U A L SECURITY—Continued O Public enterprise funds: Development loan fund (current appropriation) Foreign investment guaranty fund: $100,000 $69,210 Authorization to expend from debt receipts _ Proposed for later transmission (under proposed legislation): Military assistance. __ _. _ $159,071 $105,177 $2,028 199,072 89,577 $280,000 2,628 1 199,072 407,311 3,877,465 869,426 4,074,211 -900 1 1 1 $474 $180,474 70,377 3,528 199,072 $354,000 310,000 240,000 74,483 218,505 j 3,041,716 | 3,940,000 978,483 2,889, 626 225,517 1371,000 555,000 410,000 550,517 296,368 3,131,305 P R E S I D E N T ' S SPECIAL I N T E R N A T I O N A L PROGRAM Current authorizations: President's special international program ' 628 ' 2,073 3,024 ' 6,610 ' 3,110 ' 6,321 ' o > W $1,800,000 865,000 650,000 625,000 Economic, technical, and other assistance Development loan fund.. Total, mutual security $99,526 7,600 1 5,831 ' 4.711 * 200 1 3,379 REFUGEE RELIEF Current authorizations: Refugee relief 184 1,510 MISCELLANEOUS Current authorizations: Assistance to Greece and Turkey Obligations, defense aid, liquidation lend-lease program United Nations Relief and Rehabilitation Administration 1 Total, miscellaneous— Total, funds appropriated to the President 1,730 1,630 100 1,530 26 22 4 18 1,757 1,652 104 4,880,932 1,356, 900 4,944,312 $361,894 $3,751,779 331,486 1,115,342 $780,998 $3,902,967 575,902 1,004,642 13,811 36, 703 693,380 410,611 3,547,903 3,948, 600 985, 244 3,184,639 $8,600 $6, 761 $3,184,639 1,548 356,150 3,344,318 RECAPITULATION Enacted or recommended in this document: Appropriations Authorizations to expend from debt receipts Revolving and management funds: Public enterprise funds Proposed for later transmission: Appropriations Total, funds appropriated to the President 693.380 4,880,932 1,356,900 4,944,312 $50, 532 $2,595,734 634,772 260,079 100,000 410,611 | I 317,397 3,547,903 | $283 i $876,122 363,058 1 129,876 3,940,000 978,483 3,948.600 985,244 474 218,621 225,517 11,886,517 3,184,639 356,150 3,344,318 i Excludes outstanding common-item order reservations accounted for as balances under Department of Defense—Military Functions. CO INDEPENDENT OFFICES CO 00 ANALYSIS OF UNEXPENDED BALANCES BY ORGANIZATION UNIT AND ACCOUNT TITLE [In thousands] Balance, start of 1957 Balance, start ofl958 Fiscal year 1959 Balance, start of 1959 Estimated expenditures from— Organization unit and account title Unobligated Total Unobligated Total Unobligated Total New obligational author- New obli- Balances of prior gational ity authorauthority ity Balance, start of 1960 Unobligated Total w w O s ADVISORY C O M M I T T E E ON W E A T H E R CONTROL Current authorizations: Salaries and expenses a . $55 $113 % o w w > w AIRWAYS MODERNIZATION BOARD Current authorizations: Salaries and expenses $10.592 $35,000 $18,600 $9,400 $17,592 ALASKA I N T E R N A T I O N A L RAIL AND HIGHWAY COMMISSION Current authorizations: Salaries and expenses. $6 10 10 AMERICAN BATTLE M O N U M E N T S COMMISSION Current authorizations: Salaries and expenses 118 154 194 1,250 1,090 130 224 M Construction of memorials and cemeteries Dedication of World War II memorials 1 Total, American Battle Monuments Commission.- $7,423 10.316 119 123 7, 542 $6,124 8,556 3,374 7,306 10, 557 6,124 8,710 3,374 7,500 1,250 622,191 728, 746 308,029 700,445 584, 226 65,287 843,847 492,388 2,298,000 375, 810 197 197 341 341 445 445 3,000 4,306 1,090 3,130 4,530 1,466,153 843,847 220,000 831,847 272,388 ATOMIC E N E R G Y COMMISSION Current authorizations: Operating expenses Plant acquisition and construction Public enterprise funds: Defense production guaranties. Intragovernmental funds: Advances and reimbursements Proposed for later transmission (under proposed legislation): Plant acquisition and construction -64 $509 509 ft 54 Total, Atomic Energy Commission 376,007 1,351,134 308, 370 3, 514 5,490 47,138 1, 285,066 65, 732 1,336,680 43, 241 45,141 120,000 20,000 2,418,000 1,486,153 100,000 1,063, 783 509 13,855 1,756 1, 204, 744 CENTRAL INTELLIGENCE AGENCY Current authorizations: Construction __. 52,861 31, 286 CIVIL SERVICE COMMISSION ft > w w Current authorizations: Salaries and expenses Investigat ions of United States citizens for employment by international organizations Annuities, Panama Canal construction employees and lighthouse service widows Intragovernmental funds: Investigations. „ _ Total, Civil Service Commission w J 1,066 1,007 1,061 18,420 17,289 1,061 1,131 42 44 47 383 346 47 37 176 298 190 2,328 2,141 190 187 3, 712 3,545 3,607 3,768 3,488 3,073 3,712 4,829 3,607 5,117 3,488 4,371 21,131 19, 776 55 3,570 3,018 1,353 3,570 4,373 CO CO INDEPENDENT OFFICES—Continued ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE-Continued [In thousands] Balance, start of 1957 Balance, start of 1958 Balance, start of 1959 Organization unit and account title Unobligated Total Unobligated Total Unobligated Total Fiscal year 1959 Estimated expenditures from— New obligational author- New obli- Balances gational of prior ity authorauthority ity Balance, start of 1960 Unobligated Total COMMISSION ON CIVIL RIGHTS Current authorizations: Salaries and expenses $750 COMMISSION ON G O V E R N M E N T SECURITY Current authorizations: Salaries and expenses. _ $135 $160 $52 COMMISSION ON I N C R E A S E D INDUS T R I A L USE OF A G R I C U L T U R A L PRODUCTS Current authorizations: Commission on Increased Industrial Use of Agri- 9 $675 $75 COMMISSION ON I N T E R G O V E R N M E N T A L RELATIONS Current authorizations; Salaries and expenses . _. 1 _.._.. D I S T R I C T OF COLUMBIA AUDITORIUM COMMISSION Current authorizations: Salaries and expenses - __ 6 - E X P O R T - I M P O R T BANK OF WASHINGTON Public enterprise funds: Export-Import Bank of Washington fund: 1,024 Cash . . _____ _ Authorization to expend from debt receipts. _ _ 2,039,776 2, 793, 500 $1,323,078 Liquidation of certain Reconstruction Finance 88 78 Proposed for later transmission (under proposed legislation): Export-Import Bank of Washington fund (authorization to expend from debt receipts) __ Total, Export-Import Bank of Washington 2,039,864 2, 794, 524 1,323,156 g 43,704 2,822,000 $806,853 $1, 500 55,500 $2,856 2,440,400 59 -6,117 1,356 $595,255 12,362,400 45 o (2) o 2,000,000 2,000,000 2,865, 704 2,806,912 4,443,256 1,800,000 2,000,000 50,883 2,395,300 4,363,756 109 1,137 1,247 -2,006 -30 343 •378 <3 FARM CREDIT ADMINISTRATION Permanent authorizations: Administrative expenses (indefinite special account) Public enterprise funds: Federal Farm Mortgage Corporation: Federal Farm Mortgage Corporation fund: Cash Authorization to expend from debt receipts 984 1,084 1,137 1,247 1,137 1,247 2,539 499,705 2,593 499, 705 1,073 499, 735 1,120 499,735 532 573 i Excludes capital transfer in 1959 of $22,500 thousand. » Excludes capital transfer of $7 thousand and unobligated balance no longer available of $6,110 thousand in 1959. 2,125 2,016 - 3 Excludes capital transfer of $2,200 thousand and unobligated balance rescinded of $30 thousand in 1959. rf^ INDEPENDENT OFFICES—Continued to ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE—Continued [In thousands] Fiscal y e a r 1959 Balance, s t a r t of 1957 Balance, s t a r t of 1958 Balanc< 3, s t a r t of 1 960 Balance, s t a r t of 1959 E s t i m a t e d expendi t u r e s from— Organization u n i t a n d a c c o u n t title Unobligated Total Unobligated Total Unobligated Total N e w obligational N e w obliauthorgational ity authority Balances of prior authority Unobligated Total w O FARM CREDIT ADMINISTRATION—Con. Public enterprise funds—Continued Federal i n t e r m e d i a t e credit b a n k s : F e d e r a l i n t e r m e d i a t e credit b a n k s i n v e s t m e n t fund _ O p e r a t i n g fund: Cash A u t h o r i z a t i o n t o e x p e n d from d e b t receipts F e d e r a l i n t e r m e d i a t e credit b a n k s r e v o l v i n g fundP r o d u c t i o n credit associations i n v e s t m e n t f u n d . . A g r i c u l t u r a l m a r k e t i n g revolving fund F a r m C r e d i t A d m i n i s t r a t i o n revolving fund T o t a l , F a r m Credit A d m i n i s t r a t i o n $111,498 273,382 37,300 $112,048 273,382 37,300 35,865 60, 765 35,865 60,765 1,022,038 1,022,742 $40,000 $10,000 $40,000 $40,000 58,130 38,600 58,130 38,600 57,930 44,326 57,930 44,326 638,675 638,832 143,925 144,076 $2,125 4,653 4,244 19,400 18,000 $40,000 $to,ooo $600 -5,000 57,330 49,326 57,330 49,326 $2,016 -6,327 148,136 148,281 15,000 5,756 3,000 4,244 F E D E R A L CIVIL D E F E N S E ADMINISTRATION Current authorizations: Operations Emergency supplies and equipment „ 2,887 26, 720 2,653 39, 244 6,053 12,244 si o 1 Research and development Federal contributions Salaries and expenses, civil defense functions of Federal agencies. , Public enterprise funds: Civil defense procurement fund Proposed for later transmission (under proposed legislation): Civil defense assistance to States Total, Federal Civil Defense Administration... 6,929 8, 993 8,866 16, 729 9,043 14, 022 18,875 4,171 59, 659 1,500 17,000 10, 794 34,030 986 937 4,400 1,000 9,694 24,030 4,500 10,000 607 286 2,953 13.834 25,030 4,374 27,439 4,905 86,273 19,486 54, 658 22 26,000 20,000 67,800 41, 756 912 915 6,000 21, 766 912 58, 936 F E D E R A L COAL M I N E SAFETY BOARD OF R E V I E W H Current authorizations: Salaries and expenses 2 2 2 70 68 2 2 F E D E R A L COMMUNICATIONS COMMISSION Current authorizations: Salaries and expenses O a _. 399 344 450 8,950 8,450 500 450 F E D E R A L D E P O S I T INSURANCE CORPORATION Current authorizations: Investment in Federal Deposit Insurance Corporation (authorization to expend from debt receipts). 3,000,000 £| o w w > 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 356 1,000,000 1,000,000 FEDERAL H O M E LOAN B A N K BOARD Public enterprise funds: Federal Home Loan Bank Board revolving fund: 346 315 Cash _ 274 317 345 265 Authorization to expend from debt receipts. 1 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 -46 320 CO INDEPENDENT OFFICES—Continued 4* ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE—Continued [In thousands] Balance, start of 1958 Balance, start of 1957 Fiscal year 1959 Balance, start of 1959 Estimated expenditures from— Organization unit and account title Unobligated Total Unobligated Total Unobligated Total New obligational author- New obli- Balances gational of prior ity authorauthority ity Balance, start of 1960 Unobligated Total o M F E D E E A L H O M E LOAN BANK B OARD—Continued Public enterprise funds:—Continued Federal Savings and Loan Insurance Corporation: Revolving fund: Cash Authorization to expend from debt receipts Home Owners' Loan Corporation fund Total, Federal Home Loan Bank Board s o $252,883 750,000 2,003,228 $257,812 750,000 626 $270,218 750,000 2,008,755 2,020,533 $275,979 750,000 566 $290,620 750,000 2,026,891 2,040,885 $297,175 750,000 501 -$43,125 2,047,950 -43,166 5 $313,363 * $320,847 750,000 750,000 436 2,063,719 2,071,603 F E D E R A L M E D I A T I O N AND CONCILIATION SERVICE Current authorizations: Salaries and expenses... 208 187 178 $3,695 $3,474 178 221 275 281 320 6,385 5,922 288 495 F E D E R A L P O W E R COMMISSION Current authorizations: W Permanent authorizations: Payments to States under Federal Power Act (indefinite special account) _ _... Proposed for later transmission (under existing legislation): Salaries and expenses 33 Total, Federal Power Commission 40 40 10 10 41 325 370 6,426 5,922 338 536 314 335 6,025 5,675 335 350 F E D E R A L T R A D E COMMISSION Current authorizations: Salaries and expenses 204 F O R E I G N CLAIMS S E T T L E M E N T COMMISSION Current authorizations: Salaries and expenses Payment of Korean claims Total, Foreign Claims Settlement Commission O 50 565 50 33 3 O 33 63 50 565 515 50 50 1,519 1,560 2,190 38,300 35,546 2,190 2,754 G E N E R A L ACCOUNTING OFFICE Current authorizations: Salaries and expenses HISTORICAL AND MEMORIAL COMMISSIONS Current authorizations: Alexander Hamilton Bicentennial Commission Booker T. Washington Centennial Commission Boston National Historic Sites Commission Corregidor Bataan Memorial Commission, salaries and expenses „ Franklin Delano Roosevelt Memorial Commission. 10 I Excludes capital transfer of $19,453 thousand and unobligated balance no longer available of $60 thousand in 1959. INDEPENDENT OFFICES—Continued ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITIE-Continued [In thousands] Balance, start of 1957 Balance, start of 1958 Fiscal year 1959 Balance, start of 1959 Estimated expenditures from— New obligational author- New obligational ity authority Organization unit and account title Unobligated Total Unobligated Total Unobligated Total Balances of prior authority Balance, start of 1960 Unobligated Total o HISTORICAL AND MEMORIAL COMMISSIONS—Continued Current authorizations—Continued Jamestown-Williams burg-Yorktown Celebration Commission John Marshall Bicentennial Celebration Commission Theodore Roosevelt Centennial Commission . Woodrow Wilson Centennial Celebration Commission Total, historical and memorial commissions 3 $21 $57 5 $98 $21 27 179 252 101 $38 $41 $33 $3 $8 38 43 35 3 8 15 169 217 INDIAN CLAIMS COMMISSION Current authorizations: 4 4 5 $178 $172 5 6 685 916 1,043 17,500 16,468 1.043 1,032 INTERSTATE COMMERCE COMMISSION Current authorizations: I N T E R S T A T E COMMISSION ON T H E POTOMAC RIVER BASIN Current authorizations: Contribution to Interstate Commission on the Potomac River Basin NATIONAL ADVISORY C O M M I T T E E FOR AERONAUTICS Current authorizations: Salaries and expenses Construction and equipment Construction and equipment (liquidation 0 f contract authorization) Construction and equipment, unitary plan Proposed for later transmission (under existing legislation): Salaries and expenses Construction and equipment 13,221 6,150 25,946 8,379 6,624 28,717 18,545 6,624 46, 412 80,480 26,220 72,500 500 6,000 19,000 14.815 8,604 53,132 9 34 763 787 o 500 6,280 500 2,000 4,280 a Total, National Advisory Aeronautics Committee for 14,008 33,992 8.647 36,138 23,025 59,816 106, 700 73,000 27.500 14,815 66,016 NATIONAL CAPITAL HOUSING AUTHORITY GO W Current authorizations: Maintenance and operation of properties $2 $6 $46 2,350 1,120 $35 $6 $11 NATIONAL CAPITAL P L A N N I N G COMMISSION Current authorizations: Salaries and expenses Salaries and expenses, Washington regional mass transportation survey Land acquisition, National Capital park, parkway, and playground system M o w w $973 1,340 $1,206 600 INDEPENDENT OFFICES—Continued 00 ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE—Continued [In thousands] Balance, start of 1957 Balance, start of 1958 Fiscal year 1959 Balance, start of 1959 Estimated expenditures from— Organization unit and account title Unobligated Total Unobligated Total Unobligated Total New obligational author- New obli- Balances gational of prior ity authorauthority ity Balance, start of 1960 Unobligated a to Total o NATIONAL CAPITAL P L A N N I N G COMMISSION—Continued O Proposed for later transmission (under proposed legislation): Land acquisition, National Capital park, parkway, and playground system Total, National Capital Planning Commission. $973 $1,436 $1,206 $2,541 $99 a w $3,000 $751 $751 $3,000 3,614 2,121 1,506 3,614 $615 425 9,985 9,390 425 595 30 20 520 250 490 230 30 20 30 20 NATIONAL LABOR RELATIONS BOARD Current authorizations: Salaries and expenses... . 548 521 . NATIONAL M E D I A T I O N BOARD Current authorizations: 27 10 31 20 Salaries and expenses, National Railroad Adjustment Board 35 Total, National Mediation Board 72 50 525 475 50 50 100 1,295 1,195 100 100 22,422 2,259 140,000 82,800 14,800 2,000 1 NATIONAL SCIENCE FOUNDATION Current authorizations: Salaries and expenses... , International Geophysical Year Public enterprise funds: Research and development of rubber program Intragovernmental funds: Advances and reimbursements. Proposed for later transmission (under existing legislation) : Salaries and expenses Total, National Science Foundation. 183 32,374 9,010 33,786 1,553 17,337 604 64,822 $46 259 120 9 8,000 8,000 32,557 42,981 18,890 604 32,681 140,000 82,800 24,800 O 46 65,081 NATIONAL S E C U R I T Y TRAINING COMMISSION O a Current authorizations: Salaries and expenses P E R M A N E N T C O M M I T T E E FOR T H E OLIVER W E N D E L L HOLMES DEVISE Permanent authorizations: Oliver Wendell Holmes devise fund (indefinite special account) _ P R E S I D E N T ' S ADVISORY COMMISSION ON P R E S I D E N T I A L O F F I C E SPACE Current authorizations: Salaries and expenses 434 434 434 405 405 13 60 358 358 INDEPENDENT OFFICES—Continued ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE—Continued [In thousands] Balance, start of 1957 Fiscal year 1959 Balance, start of 1959 Balance, start of 1958 Estimated expenditures from— Organization unit and account title Unobligated Total Unobligated Total Unobligated Total New obligational author- New obliity gational authority Balances of prior authority Balance, start of 1960 Unobligated Total R E N E G O T I A T I O N BOARD Current authorizations: Salaries and expenses $224 $157 $206 $2,900 $2, 755 $150 $152 SAINT L A W R E N C E SEAWAY DEVELOPM E N T CORPORATION Public enterprise funds: Saint Lawrence Seaway Development Corporation fund: Cash Authorization to expend from debt receipts $30,428 4,850 89,000 $9,201 180 56,700 $25,363 280 47,600 19,000 $17,763 280 28,600 Total, Saint Lawrence Seaway Development Corporation 30,428 93,850 9,201 56, 880 25,363 47,880 19,000 17,763 28,880 SECURITIES AND E X C H A N G E COMMISSION Current authorizations: Salaries and expenses 327 298 498 7,100 6,600 498 500 S E L E C T I V E SERVICE SYSTEM Current authorizations; Salaries and expenses . _. _ _ _. 1,848 2,402 2,747 723 906 2 2,384 3,047 837 795 42 12,167 28,000 25,316 SMALL BUSINESS ADMINISTRATION Current authorizations: Salaries and expenses - .. Salaries and expenses, small defense plants activitiesPublic enterprise funds: Revolving fund Revolving fund, small defense plants activities Liquidation of Reconstruction Finance Corporation loans __Proposed for later transmission (under proposed legislation): Salaries and expenses Revolving fund ... Total, Small Business Administration 6,768 1,369 43,866 1,256 4,109 108 64,443 16, 450 68, 947 -25,591 33 158 -82 40 2,596 2,428 -5,028 8,170 46,003 4,135 65,391 2,800 50,000 1,904 40,000 53,308 2,607 »2,206 896 41,063 19,046 72, 212 52, 800 41,904 21,484 2,607 56,374 1,451 455 34,952 81 7,355 5,712 180 34,265 100 3,066 1,674 1,588 1,443 345 5,000 80 1,651 110 29,952 87 36,939 9,029 7,300 6,868 3,166 31,800 15 375 360 15 SMITHSONIAN I N S T I T U T I O N Current authorizations: Salaries and expenses - __ _ Additions to the Natural History Building Museum of History and Technology. _ . Salaries and expenses, National Gallery of Art Intragovernmental funds : Total, Smithsonian Institution 1,147 ... 888 923 2,245 81 34,557 25 40 16 39 913 3,513 34,573 36,873 35,800 111 34,445 SUBVERSIVE ACTIVITIES CONTROL BOARD Current authorizations: Salaries and expenses.. _ 9 14 * Excludes capital transfer of $4,100 thousand and unobligated balance no longer available of $1,150 thousand in 1959. 15 INDEPENDENT OFFICES—Continued to ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE-Continued [In thousands] Balance, start of 1957 Balance, start of 1958 Fiscal year 1959 Balance, start of 1959 Estimated expenditures from— Organization unit and account title Unobligated Total Unobligated Total Unobligated Total New obligational author- New obligational ity authority Balances of prior authority Balance>. start of 1960 Unobligated Total bd o T A R I F F COMMISSION Current authorizations: $70 $87 $85 $1,810 $1,720 $85 $90 52 62 60 1,481 1,417 55 69 a TAX COURT OF T H E U N I T E D STATES o Current authorizations: Salaries and expenses in T E N N E S S E E VALLEY A U T H O R I T Y Public enterprise funds: Tennessee Valley Authority fund ._ Proposed for later transmission (under proposed legislation): Tennessee Valley Authority fund (authorization to expend from debt receipts) Total, Tennessee Valley Authority. $83,954 83,954 129,902 129,902 $6,095 6,695 102,434 102,434 -$36,028 -36,028 62,465 62,465 16,850 16,850 125,000 13,000 141,850 29,850 29,802 29,802 -$15,501 • 30,600 66,000 112,000 50,499 142,600 U N I T E D STATES I N F O R M A T I O N AGENGY 1 Current authorizations: Salaries and expenses, ._. Acquisition and construction of radio facilities Public enterprise funds: Informational media guaranty fund: Cash _ Authorization to expend from debt receipts Total, United States Information Agency 105,000 5,032 5,983 15,580 6,428 5,139 25,422 5,865 2,529 24,522 4,965 9.239 37 19 437 5,472 77 15,013 2,538 7 12,937 15,222 41,482 10,611 46,377 5,067 42,431 110,032 8,677 8,800 2,500 36,000 7,000 100 3,500 2,500 81,900 1,900 29,022 5,597 18,600 2,500 -12 2,625 7 19 JO, 312 83,800 23,713 7 44,950 149, 582 140,682 8,800 8,900 21, 481 707,100 75,798 2,136 3, 232,000 717,960 51,100 1,250 9,145 18,881 670,100 69,398 2,031 3,228,500 715,560 50,997 1,250 1,375 2,500 36,000 6,050 100 3,500 3,184 1,310 2,600 37,000 7,350 105 3,500 » 2,400 U50 V E T E R A N S ADMINISTRATION Current authorizations: General operating expenses Medical administration and miscellaneous operating expenses Inpatient care _ ._ Outpatient care _ Maintenance and operation of supply depots... Compensation and pensions _ Readjustment benefits . Veterans' insurance and indemnities _ Grants to the Republic of the Philippines Construction of hospital and domiciliary facilities— Major alterations, improvements, and repairs Military and naval insurance National service life insurance Servicemen's indemnities Automobiles and other conveyances for disabled veterans Military and naval family allowance Permanent authorizations: 9,075 7,744 7,967 1,705 33,466 6,873 83 4,902 5,169 25,031 7,663 3,071 34,514 6,698 92 28,562 10,385 300 89,664 4,104 140 4,075 14,822 300 131,332 6,199 145 4,053 14, 955 10 123,418 4,876 726 7,793 5,680 10 150,374 7,314 713 7,767 5,819 920 1,426 850 10 1,377 10 -581 104,942 2,880 651 556 158,551 4,507 651 556 150 234 684 r 66,967 * 136,232 (77) (r) (7) () (7) 570 « Excludes capital transfer in 1959 of $2,063 thousand, 34, 596 Represents transfers between accounts. 570 o 3 O 6 INDEPENDENT OFFICES—Continued C7I ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE—Continued [In thousands] Fiscal year 1959 Balance, s t a r t of 1957 Balance, s t a r t of 1958 Balance, start of 1960 Balance, s t a r t of 1959 E s t i m a t e d expenditures from— Organization u n i t a n d a c c o u n t title Unobligated VETERANS Total Unobligated Total Unobligated Total N e w obligational authorN e w obliity gational authority Balances of prior authority Unobligated Total W H O ADMINISTRATION—Continued Public enterprise funds: C a n t e e n service revolving fund D i r e c t loans to v e t e r a n s a n d reserves (authorization to e x p e n d from d e b t receipts) R e n t a l , m a i n t e n a n c e , a n d repair of q u a r t e r s . _ Soldiers' a n d sailors' civil relief V e t e r a n s special t e r m insurance fund Vocational r e h a b i l i t a t i o n , revolving fund Intragovernmental funds: S u p p l y fund _ _ __ _. Total, Veterans Administration T o t a l , i n d e p e n d e n t offices _ $3,037 $5,501 $3,105 $5,622 $2,453 152,972 4 -2,879 446 12,466 607 180, 277 4 637 446 20,912 609 203, 478 2 - 4 , 924 447 22,211 317 252, 861 6 1,120 447 35,068 317 40,841 2 -7,230 442 34, 573 318 108,310 2 2,012 442 49, 459 318 2,705 14, 285 - 3 , 358 8,646 -1,837 8,340 299,094 442,354 396, 754 569,470 178, 825 8,960,847 11,100, 569 7, 866, 357 10, 931, 532 -$535 $5,191 8,377,938 11,861,009 • 73,092 2 1,049 432 62,899 318 -615 -1,172 8,955 77,541 157, 519 349,911 963 10 -13,440 8,211,428 6,914,653 « $4,927 53,692 2 -11,613 432 46,754 318 -4,882 399, 573 .$4,968,122 $4,899,344 $2,139 1,357,415 7,860,685 11,701,797 l-H o RECAPITULATION Enacted or recommended in this document: Appropriations Authorizations to expend from debt receipts.. Revolving and management funds: Public enterprise funds Intragovernmental funds Proposed for later transmission: Appropriations Authorizations to expend from debt receipts.. Total, independent offices.. 588,665 7,755,623 1,756,317 8,605,459 630,011 6,790,960 1,849,182 8,396,349 297,473 5,628,250 1,835,991 7,361,675 610,117 6,442 720,858 17,935 445,121 265 673,480 12, 521 446,084 1,651 634,140 11,413 4,480 2,000,000 17, 790 2,000,000 324, 551 95,655 64,818 8,960, 847 11,100, 569 7,866,357 10,931, 532 8,377,938 11, 861,009 8, 211,428 6,914,653 1,357,415 7,886,877 6,818,998 8 Excludes capital transfer in 1959 of $799 thousand. • Excludes unof ligated balance no longer available in 1959 of $40,100 thousand. 88, 248 1,614,865 5,419,369 7,226,610 1,292, 597 484,670 2,398 io 584,110 11,973 1,866,000 152, 239 2,112,000 11, 701, 797 io Excludes capital transfers of $51,122 thousand, unobligated balance no longer available of $47,420 thousand, and unobligated balance rescinded of $30 thousand in 1959. a % O s o GENERAL SERVICES ADMINISTRATION ANALYSIS OF UNEXPENDED BALANCES BY ORGANIZATION UNIT AND ACCOUNT TITLE [In thousands] Balance, start of 1957 Balance, start of 1958 Fiscal year 1959 Balance, start of 1959 Organization unit and account title Unobligated Total Unobligated Total Unobligated Balance, start of 1960 Estimated expenditures from— Total New obligational author- New obli- Balances ity gational of prior author- authority ity Unobligated Total R E A L P R O P E R T Y ACTIVITIES Current authorizations: Operating expenses, Public Buildings Service __ __ Repair and improvement, federally owned buildings Sites and expenses, purchase contract projects . Payments, public buildings purchase contracts __ Construction, United States Court of Claims and Federal Office Building, Washington, D . C _ Construction, United States Mission Building, New York, N. Y . Construction, public buildings Hospital facilities in the District of Columbia. , _. Hospital facilities in the District of Columbia (liquidation of contract authorization) _ Miscellaneous accounts: Acquisition of land and building, Chicago, Illinois Additional court facilities _ __ __ Construction of public buildings, public buildings Construction, purchase, remodeling and designing, buildings outside the District of Columbia, public buildings Defense public works, community facilities._ $865 11, 582 7,057 $4,115 13,329 13, 952 13,871 2,640 5,300 1,000 1,000 637 1 1 3 157 5 157 313 $11, 373 3,652 5,930 $10,643 30, 308 12,954 11, 793 $11,373 175 150 $4, 785 $138,500 $137,000 44,308 50,000 25,000 24, 454 20,000 1,000 7 1, 265 693 1,755 5,794 1,200 1,000 3,975 1,500 $3, 700 25,000 14,000 7 $2, 585 44, 308 29,454 572 200 1,500 ) ( $295 20 130 2,475 255 1,794 12 12 4,000 1 1,000 1,000 281 159 159 12 12 Federal Supply and Records Building General Accounting Office Building Operating expenses Remodeling the Congress Street Post Office, Chicago, Illinois Renovation and improvement of federally owned buildings outside the District of Columbia __ Repair, preservation, and equipment, outside the District of Columbia .— Sites and planning, public buildings outside the District of Columbia __ United States Post Office, Chicago, Illinois United States Post Office and Courthouse, Nome, Alaska.. Permanent authorizations: Expenses, disposal of surplus real and related personal property (indefinite special account)._ Public enterprise funds: Cost of maintenance, repair, etc., of improvements, public buildings Maintenance, etc., Layfayette Building, Washington, D. C , public buildings Intragovernmental funds: Buildings management fund-.. Construction services, public buildings _ — Advances and reimbursements, real property activities Proposed for later transmission (under existing legislation) : Operating expenses, Public Buildings Service Total, real property activities _ - 1 1 1 2 507 6 I 1 348 427 15 27 27 27 284 334 50 31 363 300 63 400 400 9 w o 4 615 I 61 1,100 1,134 55 110 1,134 57 284 284 1,213 400 1,000 600 134 564 543 5,661 129 31,994 557 557 -560 557 1557 35 543 35 35 -32 33 2 32 3 6,640 138 35 7,236 311 15 6,367 118 7,067 342 -100 20 6,467 88 7,167 200 200 o % o > w 7,886 90,480 31,133 78,277 19,102 90,440 166, 793 48, 512 5,480 ! 19,500 5,220 18,500 200 800 13,692 436 178 15,000 15,000 242 -23 4 15,444 39,980 ' 215,940 322 PERSONAL P R O P E R T Y ACTIVITIES Current authorizations: Operating expenses, Federal Supply Service ... Expenses, supply distribution _ Intragovernmental funds: General supply fund , Administrative expenses, foreign aid procurements Advances and reimbursements, personal property activities.. Total, personal property activities 1 Ex eludes capital transfer in 1959 of $560 thousand. 3 Excludes capital transfer in 1959 of $35 thousand. 247 891 [ 220 726 -190 643 79 532 1 11,652 471 160 14,698 607 716 13,492 474 12,283 16,967 13,966 8 38,720 Excludes capital transfer in 1959 of $1,200 thousand. 1,223 307 1,091 17,350 499 3 12,250 459 174 17,849 1 14,281 GENERAL SERVICES ADMINISTRATION—Continued ANALYSIS OP UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE—Continued [In thousands] Balance, start of 1957 Balance, start of 1958 Fisca] year 1959 Balance, start of 1959 Estimated expenditures from— Organization unit and account title Unobligated Total Unobligated Total Unobligated New obligational 1 author- New obli- Balances gational of prior ity author- authority ity Total Balance, start of 1960 Unobligated Total R E C O R D S ACTIVITIES Current authorizations: Operating expenses, National Archives and Records Service $41 $393 $1 $344 $337 $7, 650 $7,270 $330 $387 77 87 2,000 1,865 85 137 T R A N S P O R T A T I O N AND U T I L I T I E S ACTIVITIES Current authorizations: Operating expenses, Transportation and Public Utilities Service Proposed for later transmission: Operating expenses, Transportation and Public Utilities Service _._ _ 53 5 Total, transportation and utilities activities 53 77 5 92 2,000 1,865 90 137 70,000 60,000 90,000 132, 561 D E F E N S E MATERIALS ACTIVITIES Current authorizations: Public enterprise funds: Abaca fiber program., , _ 389,030 767,306 198, 560 407. 561 $76,663 212, 561 5,296 6,163 4,562 4,889 4,593 4,885 577 $4,016 4,308 Defense p r o d u c t i o n g u a r a n t i e s , defense materials procurem e n t activities T o t a l , defense m a t e r i a l s activities GENERAL -749 5,324 5,157 60,000 89, 828 9,340 142,026 190 14 3,677 3,644 3,941 3,875 4,596 4,408 398,003 777,113 207,063 416,325 85, 852 221, 854 70,000 14 200 180 171 180 500 500 250 250 250 18,401 10,773 24, 564 6,638 11, 601 12,469 9,865 7,819 13,995 12,305 12, 408 8,091 - 1 , 287 -715 15, 285 12,660 13, 695 * 8, 756 64 131 78 471 138 64 551 123 -100 7 56 651 * 115 29,418 31, 684 24, 648 18,813 26, 614 21,437 200 190 -1,831 28,001 23,227 459,988 881,843 275,128 530, 803 145, 534 349, 604 335, 770 274,838 138,152 63,076 270, 538 $412,212 2,640 $820, 279 5,300 $222,838 $479, 585 $88,938 $296, 620 $741 $216, 895 38,750 6,386 41, 612 14,652 33,151 19.139 27,026 24,192 36,081 20, 515 30,384 22,389 37,875 I 24,460 • 32, 505 ' 21,138 63,076 270, 538 ACTIVITIES C u r r e n t authorizations: Salaries a n d expenses, Office of A d m i n i s t r a t o r A d m i n i s t r a t i v e operations R e f u n d s u n d e r Renegotiation A c t (interest) Public enterprise funds: F e d e r a l Facilities C o r p o r a t i o n fund _ R e c o n s t r u c t i o n F i n a n c e C o r p o r a t i o n l i q u i d a t i o n fund Intragovernmental funds: A d m iriistrative operations fund .... ..-,__. W o r k i n g capital fund T o t a l , general activities 20 _. .... . T o t a l , General Services A d m i n i s t r a t i o n . . 10 RECAPITULATION Enacted or r e c o m m e n d e d in t h i s d o c u m e n t : Appropriations . ___ . . Contract authorizations... _ _ Revolving a n d management funds: P u b l i c e n t e r p r i s e funds I n t r a g o v e r n m e n t a l funds _ Proposed for later t r a n s m i s s i o n : _ _ [ |$335, 770 . $274, 838 _ * Excludes capital transfer in 1959 of $50 thousand. * Excludes capital transfer in 1959 of $1 thousand. 459,988 881,843 275,128 530,803 145, 534 349, 604 {. _ 205 205 T o t a l , G e n e r a l Services A d m i n i s t r a t i o n $137,947 335, 770 274,838 • Excludes capital transfers in 1959 of $645 thousand. T Excludes capital transfers in 1959 of $1,201 thousand. 138,152 HOUSING AND HOME FINANCE AGENCY ANALYSIS OF UNEXPENDED BALANCES BY ORGANIZATION UNIT AND ACCOUNT TITLE [In thousands] Balance, start of 1957 Balance, start of 1958 Balance, start of 1959 Organization unit and account title Unobligated Total Unobligated Total Unobligated Total Fiscal year 1959 Estimated expenditures from— New obligational author- New obliity gational authority Balances of prior authority Balance, start of 1960 Unobli- Total O F F I C E OF T H E A D M I N I S T R A T O R Current authorizations: Salaries and expenses Urban planning grants Permanent authorizations: Housing studies (contract authorization) Public enterprise funds: Operations, college housing loans fund: Cash . Authorization to expend from debt receipts. Operations, public facility loans: Cash Authorization to expend from debt receipts. Public works planning fund Revolving fund (liquidating programs) _ Urban renewal fund: Cash Contract authorization Authorization to expend from debt receipts. Community disposal operations fund $2,371 $372 2,726 J, 191 $815 2,375 $435 3,575 500 $8, 850 3, 500 $7,! 725 $420 2,375 1,000 $1, 500 298, 717 3,784 383,888 341,538 18,637 522,143 260,347 21,454 532,144 97 99,500 3,398 23,145 370 99,500 4,385 24,212 88,357 5,435 18,438 424 98,600 10,687 19,043 67,632 935 12,435 1,142 82,600 10,468 10,052 497,449 800,871 59,144 583,000 952,000 57 638,734 682,869 1,646 65,953 743,000 947,000 1,978 787,234 521,474 835 17,849 1,093,000 937,000 1,859 $1,258 2,775 $2, 500 24,279 310,144 219,175 24,300 8,500 8,100 -22,010 53,268 -15,030 2,500 37,371 685 8.722 1,842 57,600 10,868 17,062 545,634 329,849 1,724 14,581 1,043,000 937,000 21,889 Proposed for later transmission: Operations, college housing loans fund (authorization to expend from debt receipts) _. Urban renewafcapital grants (contract authorization) _ Total, Office of the Administrator 1,725, 548 2,113, 438 1,652,392 2,712, 258 500,000 51 500,000 500,000 500,051 500,000 1,779, 708 2, 431,975 200, 000 198,897 200, 000 200, 000 200,000 200, 000 1, 325, 382 2,814, 798 500,000 500.000 421,850 8,712 270, 598 F E D E R A L FLOOD I N D E M N I T Y ADMINISTRATION Public enterprise funds: Investment in flood indemnity operations (authorization to expend from debt receipts) _ ___ Administrative expenses __ 500,000 Total, Federal Flood Indemnity Administration, 500,000 W 500,000 500,000 500,000 F E D E R A L NATIONAL MORTGAGE ASSOCIATION Public enterprise funds: Loans for secondary market operations (authorization to expend from debt receipts) Special assistance functions fund: Cash Authorization to expend from debt receipts Management and liquidating functions fund: Cash and U. S. securities __ Authorization to expend from debt receipts. _„__ Proposed for later transmission: Special assistance functions fund (authorization to expend from debt receipts) O 1,346, 766 2, 313, 000 2, 313, 000 905, 519 905, 519 1,346,766 530,336 21 549, 573 239,178 314 575,374 17,925 11,731 17,944 23,339 274 36, 589 274 Total, Federal National Mortgage Association. 1, 453, 780 1,484, 788 1, 609, 557 1,959,317 See footnotes at end of table. O 251,397 200 944,374 1 35,837 66,446 11 292, 875 f -164,000 90,000 2, 600, 234 3,324, 020 2,303.000 10,000 90,000 138,875 2,303, 000 o w 8 200 w > {..._ i 44,157 j 40,902 * 635,174 76,446 (fi) 1,608 90,000 2,389, 667 3,104, 820 HOUSING AND H O M E FINANCE AGENCY—Continued 0> to ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE—Continued [In thousands] Fiscal year 1959 Balance,"start of 1959 Balance, s t a r t of 1958 Balance, s t a r t of 1957 Balance, s t a r t of 1960 E s t i m a t e d expenditures from— O r g a n i z a t i o n u n i t a n d a c c o u n t title Unobligated Total Unobligated Total Unobligated Total N e w obligational authorN e w obliity gational authority Balances of prior authority Unobligated Total w o FEDERAL HOUSING ADMINISTRATION Public enterprise f u n d s : Federal H o u s i n g A d m i n i s t r a t i o n fund PUBLIC HOUSING $363, 068 $449,060 $434, 680 $504, 873 $583, 387 $587, 738 -$30,003 « $654, 293 o w w ADMINISTRATION Public enterprise f u n d s : Low-rent public housing program fund: Cash. A u t h o r i z a t i o n t o e x p e n d from d e b t receipts Intragovernmental f u n d s : Limitation on administrative a n d nonadministra- i> IP 594, 332 29, 862 1, 462, 000 548,146 Total, Public Housing Administration-.. Total, Housing a n d H o m e Finance Agency 32, 905 1, 459, 000 396, 924 38,129 [ $126,200 1, 459, 000 $126, 200 -10,457 | 1 377,006 * 47, 500 1, 459, 000 752 752 710 910 $521, 155 594,332 1,492, 772 548,146 1, 492, 615 396, 924 1, 497,881 126, 200 126, 200 - 9 , 705 377,006 1,506, 500 4,136, 728 5, 540, 058 4,872,091 6, 905,113 5, 654, 423 8, 617, 546 638, 050 134, 912 319, 765 5,179, 793 8,580,411 RECAPITULATION Enacted or recommended in this document: Appropriations Authorizations to expend from debt receipts. Contract authorizations Revolving and management funds: Public enterprise funds Intragovernmental funds Proposed for later transmission: Authorizations to expend from debt receiptsContract authorizations Total, Housing and Home Finance Agency. $2,371 3,610,268 497,449 26,640 $3,098 4,819, 484 583,000 $2,191 4,181,808 639, 234 133, 566 910 48,858 $4,010 5,970,312 $4, 815,647 788,734 743, 500 186, 581 710 50,042 $3,190 7,351, 505 1,094, 500 ) $148,050 $134,912 $319,765 167,599 752 52,033 490,000 4,136, 728 5, 540,058 4,872,091 6,905,113 5,654, 423 8,617, 546 $4,179,121 548,134 638,050 134,912 319,765 8 $4,033 6,856, 211 1,045,500 9 184,667 200, 505 200,000 290,000 200,000 5,179,793 8,580,411 O i Excludes capital transfer (repayment of investment to Treasury) in 1959 of $25,000 thousand. 2 Excludes capital transfer (repayment of investment to Treasury) in 1959 of $15,000 thousand. 3 Excludes capital transfer (payment of dividend to Treasury) in 1959 of $5,125 thousand. * Excludes unobligated balance no longer available (authorization to expend from debt receipts) in 1959 of $11,200 thousand. 5 Excludes unobligated balance no longer available (authorization to expend from debt receipts) in 1959 of $154,000 thousand. « Excludes net debentures retired (authorization to expend from debt receipts) in 1959 of $9,097 thousand. 7 Excludes capital transfer (payment of property receipts to Treasury) in 1959 of $1,086 thousand. 8 Excludes amounts no longer available in 1959 of $174,297 thousand. 8 Excludes capital transfers in 1959 of $46,211 thousand. 3 G O D E P A R T M E N T OF AGRICULTURE ANALYSIS OF UNEXPENDED BALANCES BY ORGANIZATION UNIT AND ACCOUNT TITLE [In thousands] Balance, start of 1957 Balance, start of 1958 Balance, start of 1959 Organization unit and account title Unobligated Total Unobligated Total Unobligated Total Fiscal year 1959 Estimated expenditures from— New obligational author- New obli- Balances gational of prior ity author- authority ity Balance, start of 1960 Unobligated Total A G R I C U L T U R A L R E S E A R C H SERVICE Current authorizations: Salaries and expenses „ State experiment stations-. Diseases of animals and poultry Animal disease laboratory facilities Research facilities __ $7 __ - __ 221 786 Salaries and expenses, Bureau of Agricultural and Industrial Chemistry, Agricultural Research Administration Salaries and expenses, Bureau of Animal Industry, Agricultural Research Administration... > Salaries and expenses, Bureau of Dairy Industry, Agricultural $9,591 45 720 224 1,948 40 $15,765 277 $14,499 305 911 16,468 817 49 $2, 529 $16,372 159 205 15,668 17 4 $120, 203 $104, 500 30,430 30,604 $14,615 152 125 8,000 17 $1,279 $17,460 181 80 7,668 4 150 1 10 Salaries and expenses, Bureau of Human Nutrition and Home 39 Intragovernmental funds: 264 322 383 286 1 342 322 1,278 13,090 16,425 33,336 2,871 32, 747 150,807 134,930 22,909 352 322 1. 631 25,715 1 E X T E N S I O N SERVICE Current authorizations: Cooperative extension work, payments and expenses 812 1,484 2,512 60,159 58, 797 1,480 2,394 37 41 64 578 505 64 73 34 56 -3 59 37 75 120 578 61 132 4,282 6,275 4,648 156 4,693 12,500 6,096 45 5,765 21,050 6,172 45 7,000 72,280 14,000 13,220 335 10,000 66, 700 6,000 6,900 300 3,000 4,700 14,000 6,100 45 3,500 6,645 15,050 6,392 40,032 109,835 82,900 28,345 38,622 F A R M E R COOPERATIVE SERVICE Current authorizations: Salaries and expenses Intragovernmental funds: Advances and reimbursements _ Total, Farmer Cooperative Service 505 SOIL CONSERVATION SERVICE Current authorizations: Conservation operations Watershed protection Flood prevention Water conservation and utilization projects Great Plains conservation program Total, Soil Conservation Service AGRICULTURAL CONSERVATION PROGRAM SERVICE Current authorizations: Agricultural conservation program Emergency conservation measures Total, Agricultural Conservation Program Service W 2,604 1,740 126 7,150 1,583 16 8,749 15,361 4,470 23,334 10,839 10, 839 O 35 10,500 O W Q > 17 56,582 16 3,069 22,556 3,069 14, 556 235,000 217,444 14,556 17,556 17 56,582 3,085 25,625 14, 556 235,000 217,444 14, 556 17,556 2,766 3,180 3, 264 2,820 3,381 367 49 890 890 32,355 1,160 99,125 875 890 AGRICULTURAL M A R K E T I N G SERVICE Current authorizations: Marketing research and service.._ Payments to States, Territories, and possessions School lunch program ._ _._ _ Agricultural Marketing Act Research and Marketing Act of 1946 1 34 J II 35,292 1 1,160 100,000 Ox 1 DEPARTMENT OF AGRICULTURE—Continued ANALYSIS OF UNEXPENDED BALANCES— Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE—Continued [In thousands] Fiscal year 1959 Balance, start of 1957 Balance, start of 1959 Balance, start of 1958 Balance, start of 1960 E s t i m a t e d expenditures from— O r g a n i z a t i o n u n i t a n d a c c o u n t title Unobligated AGRICULTURAL MARKETING Unobligated Total Unobligated Total Unobligated Total SERVICE—Continued Permanent authorizations: Perishable Agricultural C o m m o d i t i e s Act fund (indefinite special account) - . -R e m o v a l of s u r p l u s agricultural commodities (indefinite) Intragovernmental f u n d s : T o t a l , Agricultural M a r k e t i n g Service, . FOREIGN Total N e w obligational a u t h o r - N e w obli- Balances gational ity of prior authorauthority ity AGRICULTURAL _ $304 244,701 245, 005 $335 293,554 297,105 $312 297,949 $343 318,074 20 72 298, 281 322, 559 $309 300,000 $350 320,125 $680 227, 850 $329 132 $350 150,000 $309 300,000 81 1 $351 320,125 51 324, 761 364,982 132,969 154,126 771 002 4,002 3, 428 662 574 771 602 4,002 3, 42S 662 574 300,309 300,309 324,798 SERVICE Current authorizations: 500 Intragovernmental f u n d s : 2 T o t a l , Foreign Agricultural S e r v i c e . . 568 ( r O M M O D 1 T Y KXCH A XOE A U T H 0 R IT V Current authorizations: Salaries a n d expenses.SOIL BANK 832 38 39 39 PROGRAMS Current authorizations: ConS<Tvat ion reserve p r o g r a m : A u t h o r i z a t i o n to expend from d e b t r e c e i p t s . Curren t appropriation Acreage reserve p r o g r a m : A u t h o r i z a t i o n to e x p e n d from d e b t r e c e i p t s . Current appropriation 1,003 1,340 350, 000 349,638 1,212 75,042 330,000 329,962 75,034 46 16, 226 76,382 680,000 679,600 76, 246 536 117 4,614 71 877 39, 715 76,000 39,665 74,130 52 800 1,947 30,000 30,000 14, 627 T o t a l , soil b a n k p r o g r a m s COMMODITY STABILIZATION 1,599 15, 610 SERVICE O Current authorizations: Acreage a l l o t m e n t s a n d m a r k e t i n g q u o t e s Sugar Act program P e r m a n e n t authorizations: R e i m b u r s t merit to C o m m o d i t y C r e d i t Corporation, N a t i o n a l Wool Act (indefinite) Intragovernmental f u n d s : A d m i n i s t r a t i v e expenses, sec. 392, Agricultural A d j u s t m e n t A c t of 1938 Local a d m i n i s t r a t i o n , sec. 388, A g r i c u l t u r a l A d j u s t m e n t Act of 1938 Proposed for later transmission ( u n d e r proposed legislation): Acreage a l l o t m e n t s a n d m a r k e t i n g q u o t a s T o t a l , C o m m o d i t y Stabilization S e r v i c e . S3 177 1,350 986 2,364 2, 422 -1,401 2,422 1,401 3,837 5,128 5,052 7,020 7,817 -1,800 7,817 1,800 -2,200 4,014 i Excludes u n o b l i g a t e d b a l a n c e expiring in 1959 of $77,850 t h o u s a n d . 2 10, 497 6,038 14,115 11,187 143, 415 138, 394 -100 11, 091 5,117 > DEPARTMENT OF AGRICULTURE—Continued ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT A N D ACCOUNT TITLE—Continued [In thousands] Balance, start of 1957 Balance, start of 1958 Balance, start of 1959 Organization unit and account title Unobligated Total Unobligated Total Unobligated Total Fiscal year 1959 Estimated expenditures from— New obligational author- New obli- Balances ity gational of prior authorauthority ity Balance, start of 1960 Unobligated Total w o C O M M O D I T Y C R E D I T CORPORATION Public enterprise funds : Commodity Credit Corporation fund: Cash -- - - - --$163,991 $39,349 $44,682 $29, 459 $34,994 [$1,760,400 $1, 760,400 $524, 355 810,000 $316,967 1,117,000 $2,031,130 2,678,000 1 $1,462,631 2,158,000 J " ' Proposed for later transmission (under proposed legislation): 75,000 -163,991 839, 459 316,967 1,161, 682 2,031,130 2, 717,349 1, 760,400 1, 760, 400 -75,000 599, 355 1, 462, 631 2,117, 994 Intragovernmental funds: Proposed for later transmission (under proposed legislation): Sales of surplus agricultural commodities for foreign cur-28,000 Total, Commodity Credit Corporation -163,991 839,459 95,000 316,967 1,161, 682 2,031,130 2,689,349 1,760,400 1,760,400 -123,000 694,355 1,462,631 1,994,994 F E D E R A L CROP INSURANCE CORPORATION Current authorizations: 1,511 1,514 236 6,377 6,141 235 237 o Public enterprise funds: Federal Crop Insurance Corporation fund Total, Federal Crop Insurance Corporation 486 24,833 27,863 6,141 721 24,833 28,100 9,019 206, 000 8,450 22,000 559 345, 000 170 649, 703 811,262 215,019 30,450 345, 559 170 650,272 2,030 403,360 1,677 175,000 174,300 1,300 12. 200 1,676 390,139 1,430 391,160 1,790 - 1 , 783 44,447 38,282 4,127 1,505 3 o 434,167 > 15,294 16,133 21,538 21,768 25,501 28,349 15,294 17,644 21,538 23,282 25, 501 28, 585 55,023 415 696,621 171,570 414 931, 703 25,670 559 810, 703 55,023 697,036 171,570 932,117 25,670 1,332 6,960 430,139 23,387 433,312 1,437 400,139 33,679 28,033 42,448 36,499 6,377 RURAL E L E C T R I F I C A T I O N ADMINISTRATION Current authorizations: Salaries and expenses Loans (authorization to expend from debt receipts) Total, Rural Electrification Administration 569 F A R M E R S ' H O M E ADMINISTRATION Current authorizations: Loans (authorization to expend from debt receipts): Farm ownership, farm operating, and soil and water conservation Farm housing Salaries and expenses Public enterprise funds: Disaster loans, etc., revolving fund Farm tenant-mortgage insurance fund (authorization to expend from debt receipts) 1,345 29, 089 27,300 o 40,416 Total, Farmers' Home Administration 37, 707 1,712 603 2,651 1,301 3,327 1,272 3,550 2,045 1,272 43,460 46,615 466,469 487,470 445,914 444,838 207,639 203,645 14,665 438, 713 ft) ft OFFICE OF T H E G E N E R A L COUNSEL Current authorizations: Salaries and expenses a _ 125 130 135 3,043 2,890 135 153 118 126 171 2,661 2,490 171 171 OFFICE OF T H E SECRETARY Current authorizations: Salaries and expenses Intragovernmental funds: Working capital fund, Department of Agriculture Total, Office of the Secretary. ' 246 408 252 264 241 316 246 526 252 390 241 487 2,661 2,490 -32 249 348 139 249 519 CO DEPARTMENT OF AGRICULTURE—Continued ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE—Continued [In thousands] Balance, start of 1957 Balance, start of 1958 Fiscal year 1959 Balance, s t a r t of 1959 Balance, start of 1960 E s t i m a t e d expenditures from— Organization u n i t a n d a c c o u n t title Unobligated OFFICE OF Total Unobligated Total Unobligated Total N e w obligational a u t h o r - N e w obli- Balances gational ity of prior authorauthority ity Unobligated Total INFORMATION Current authorizations: Salaries a n d expenses __ __ . $585 $350 $368 $1,367 $990 $360 $385 33 34 36 772 737 33 38 10, 805 9,946 92, 680 23, 099 80, 900 15,350 10,600 7,150 11 985 10 545 50 662 15 19 137 35 106 28 50 300 10 10 60 2 700 575 40 310 8 16 125 30 80 20 50 592 15 3 137 5 26 g 3,275 4,500 2,000 LIBRARY Current authorizations: Salaries a n d expenses FOREST .__ . . . SERVICE Current authorizations: F o r e s t r o a d s a n d trails $600 24,000 10, 727 24,000 42 233 19 186 165 $337 8, 270 3 268 50 532 15 119 137 $850 Acquisition of l a n d s for n a t i o n a l forests: 43 36 200 Assistance to S t a t e s for tree p l a n t i n g 7,942 1,035 Permanent authorizations: E x p e n s e s , b r u s h disposal (indefinite special account) 2,032 3,656 7,606 1,598 2,676 3,125 2,216 2,350 $1,756 3,425 R o a d s a n d trails for S t a t e s , n a t i o n a l forests fund (indefinite special account) _ Miscellaneous p e r m a n e n t a p p r o p r i a t i o n s : Forest fire p r e v e n t i o n (indefinite special a c c o u n t ) . P a y m e n t to M i n n e s o t a (Cook, L a k e , a n d St. Louis Counties) from t h e n a t i o n a l forests fund (indefinite special account) P a y m e n t s d u e counties, s u b m a r g i n a l land program, F a r m T e n a n t A c t (indefinite special account) P a y m e n t s to school funds, Arizona a n d N e w Mexico, act of J u n e 20, 1910 (receipt l i m i t a t i o n ) (indefinite) P a y m e n t s to S t a t e s a n d Territories from t h e national forests fund (indefinite special a c c o u n t ) D e v e l o p m e n t a n d i m p r o v e m e n t of ranger dwelling, T o n t o N a t i o n a l F o r e s t (indefinite special account) Intragovernmental funds: W o r k i n g c a p i t a l fund, F o r e s t Service Advances and reimbursements _. P r o p o s e d for later t r a n s m i s s i o n : F o r e s t protection a n d utilization T o t a l , F o r e s t Service T o t a l , D e p a r t m e n t of A g r i c u l t u r e 394 2,821 489 4,562 4,072 10,789 7,400 3,389 4,072 9 18 5 7 7 15 8 7 7 48 48 425 425 129 129 26,969 26, 969 1 1 1 -446 83 27,121 50,887 231, 935 2,047,000 3,368 1,422 15 27,458 197 3,463 1,463 -50 400 400 31,020 159,714 133,876 24,475 497 1,513 2,253 32,383 1,328,350 3,070,480 2,845,937 4, 509,078 4,106,602 3,591,379 1,389,957 2,230, 789 3, 556,494 RECAPITULATION E n a c t e d or r e c o m m e n d e d i n t h i s d o c u m e n t : Appropriations A u t h o r i z a t i o n s to expend from p u b l i c d e b t receipts Contract authorizations . . . _ . . . Revolving and management funds: P u b l i c e n t e r p r i s e funds I n t r a g o v e r n m e n t a l funds - . . . . . . _ _. Proposed for later t r a n s m i s s i o n : Appropriations ._ R e v o l v i n g a n d m a n a g e m e n t funds: P u b l i c enterprise funds T o t a l , D e p a r t m e n t of A g r i c u l t u r e . - - $253, 625 $418, 225 -107,636 1, 513, 580 24,000 24,000 57, 422 4,524 231, 935 2,047,000 f $303,344 »$445, 627 1,852,940 3, 200,829 >$4,108,902 $3,593, 579 $1,219,557 57,868 6,247 95,784 11,478 71, 276 780 105, 469 12, 528 400 -28,000 i Excludes unobligated balance expiring in 1959 of $77,850 thousand. 83, 902 7,293 $330,021 $442,337 $316, 942 $524, 206 934, 214 2, 520,881 2, 456,939 3,894,475 < [ -2,300 - 2 , 200 1,328,350 3,070,480 2,845, 937 4, 509,078 4,106, 602 3,591,379 400 170,000 73,407 1,098 102, 644 5,494 -100 -198,000 1,389,957 2, 230, 789 3,556, 494 DEPARTMENT OF COMMERCE ANALYSIS OF UNEXPENDED BALANCES BY ORGANIZATION UNIT AND ACCOUNT TITLE [In thousands] Balance, start of 1957 Balance, start of 1958 Fiscal year 1959 Balance, start of 1959 Estimated expenditures from— Organization unit and account title Unobligated Unobligated Total Total Unobligated Total New obligational author- New obli- Balances gational of prior ity author- authority ity Balance, start of 1960 Unobligated Total GENERAL ADMINISTRATION Current authorizations: Salaries and expenses Intragovernmental funds: Advances and reimbursements Working capital fund Public enterprise funds: Aviation war risk insurance revolving fund Defense production guaranties. _ Total, general administration $102 __ $115 $154 17 178 $191 14 147 6 6 6 6 160 303 197 282 47 189 54 $126 $129 $2, 745 12 116 $124 5 —6 >_.. $2, 576 129 254 2,745 2,570 129 90 271 154 350 115 8,920 7,300 7,000 395 8,529 7,090 6,530 371 221 45 85 115 $171 $95 12 i 100 6 6 101 289 BUREAU OF T H E CENSUS Current authorizations: Salaries and expenses _ 1958 censuses of business, manufactures, and mineral industriesEighteenth decennial census Census of governments Census of agriculture _ Censuses of business, manufactures, and mineral industries.. 118 915 1,818 737 2,126 897 166 939 47 155 25 25 441 319 735 24 Intragovernmental funds: Advances and reimbursements T o t a l , B u r e a u of t h e C e n s u s CIVIL AERONAUTICS -.„_ __ .._._ _. .- 2,555 3,141 1,128 1,384 90 915 23,615 22, 520 491 17,531 6,972 25,547 16,866 11,952 77,003 35,470 19,700 146,607 230,000 175,000 201,170 26,700 18,830 93,300 129,000 138 747 63,000 2,500 1,962 45, 500 138 509 36 1,200 964 36 236 8,000 6,000 70 2,500 6,318 1,519 ADMINISTRATION C u r r e n t authorizations: Operation and regulation _ E s t a b l i s h m e n t of a i r - n a v i g a t i o n facilities Grants-in-aid for a i r p o r t s ( p e r m a n e n t contract authorization) _._ O p e r a t i o n a n d m a i n t e n a n c e , W a s h i n g t o n N a t i o n a l Airport Construction, Washington National Airport O p e r a t i o n a n d m a i n t e n a n c e of p u b l i c airports, T e r r i t o r y of Alaska _. 33,294 2,782 42,500 77 2,959 58,803 1,098 96,144 126 2,213 60,553 33 1,382 43 255 67,970 50,553 29,700 201,607 146,500 538 238 C o n s t r u c t i o n a n d d e v e l o p m e n t , a d d i t i o n a l W a s h i n g t o n air14,631 142 80 -3 Intragovernmental funds: Advances and reimbursements. _ C u r r e n t authorizations: Salaries a n d expenses P a y m e n t s to air carriers . 10, 500 12,318 70 22, 318 351 52 27 68,457 112,647 83, 778 211,601 96,023 17,099 292 23,244 1,853 225 440 -1,692 17,099 23,536 1,853 665 -1,692 319,116 471,700 230, 796 172,383 339 6,100 40, 750 5,720 40,750 339 46,850 46,470 339 118,523 387,637 BOARD _ - ... T o t a l , C i v i l Aeronautics B o a r d _ . _ _ _. _ i Excludes capital transfer in 1959 of $11 thousand. 6,991 11 9 92 , . Total, Civil Aeronautics Administration.-. CIVIL AERONAUTICS 33,591 527 84 - 339 380 -3,581 -3,581 380 DEPARTMENT OF COMMERCE—Continued ANALYSTS OF UNEXPENDED BALANCES^Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE-Continued [In thousands] Fiscal year 1959 Balance, s t a r t of 1958 Balance, start of 1957 Balance, start of 1959 E s t i m a t e 1 expenditures from— Organization u n i t a n d account title Unobligated COAST A N D GEODETIC Total Unobligated Total Unobligated Total N e w obligational a u t h o r - N e w obli- Balances ity gational of prior authorauthority ity Balance, start of 1960 Unobligated Total SURVEY C u r r e n t authorizations: $724 3.679 2 $10,640 $109 $1,050 5,329 $11,750 $3.679 $935 4, 580 $1,225 749 3,679 4, 405 109 6,379 11.750 10. 640 5.515 1.974 500 7,6.50 7,000 500 650 $583 C o n s t r u c t i o n of a s u r v e y i n g s h i p , ( ' o u s t r u c t i o n a n d e q u i p m e n t , geomagnetic station T o t a l , Coast a n d Geodetic S u r v e y , $19 53 19 636 BUSINESS A N D D E F E N S E SERVICES ADMINISTRATION Current authorizations: Salaries a n d expenses Proposed for later transmission: Salaries a n d expenses _ Intragovernmental funds: Advances and reimbursements . . 446 20 ....,,. . T o t a l , Business a n d Defense Services A d m i n i s t r a t i o n 557 25 30 4 25 476 561 520 20 7, 0.50 7,000 520 650 OFFICE OF AREA DEVELOPMENT Current authorizations: Salaries a n d expenses. 395 BUREAU OF FOREIGN COMMERCE Current authorizations: Salaries a n d expenses E x p o r t control Proposed for later transmission: E x p o r t control 156 101 T o t a l , B u r e a u of F o r e i g n C o m m e r c e OFFICE OF BUSINESS 382 188 117 257 191 126 305 317 2,448 199 7 162 119 3,060 2,900 5,508 5,178 160 ECONOMICS Current authorizations: 1, 317 Salaries a n d expenses Intragovernmental f u n d s : Advances and reimbursements $3 T o t a l , Office of Business E c o n o m i c s . MARITIME ..„ .,... 80 1,317 ACTIVITIES Current authorizations: Ship construction Operating-differential subsidies Salaries a n d expenses _ Maritime training State marine schools, W a r S h i p p i n g A d m i n i s t r a t i o n liquidation R e p a i r of reserve fleet vessels Contract authorization C o n s t r u c t i o n fund R e p a i r of reserve fleet facilities S h i p c o n s t r u c t i o n (liquidation of contract a u t h o r i z a t i o n ) . Vessel operations functions . 58 78,993 4,685 827 7,000 135, 588 4, 685 892 188 59 6,583 1,730 7,000 44 13,336 161, 764 20,392 460 7,000 7,357 208,182 20, 392 346 263 156 9,998 823 7,000 92 7,432 106 19,313 177,182 771 272 106 92 106 160, 000 120,000 15, 050 2,394 660 3, 000 120,000 13, 725 2,170 535 52,000 1, 225 215 95 1,900 $18,313 282,182 871 281 136 92 DEPARTMENT OF COMMERCE—Continued ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE-Contiimed [In thousands] Balance, start of 1957 Balance, start of 1958 Balance, start of 1959 Organization unit and account title Unobligated Total Unobli- Total Unobligated Total Fiscal year 1959 Estimated expenditures from— New obligational author- New obli- Balances gational of prior ity author- authority ity Balance, start of 1960 Unobligated Total w o M A R I T I M E ACTIVITIES—Continued Public enterprise funds: Federal ship mortgage fund_ Vessel operations revolving fund War risk insurance revolving fund Total, maritime activities 3 $148 26, 926 233 $148 24,038 235 $475 3,767 377 $475 346 15,379 609 $844 15,817 557 123. 775 194, 526 201,592 262, 819 36,145 203,645 4,059 3,973 4,753 5,332 5,421 5,270 $298,104 $139,430 $927 -4, 571 -176 $2, 917 16, 656 766 $2,917 17,388 733 o 51, 615 38, 652 310, 704 > -628 6,086 I N L A N D WATERWAYS CORPORATION Public enterprise funds: Inland Waterways Corporation fund PATENT OFFICE Current authorizations: Salaries and expenses BUREAU OF P U B L I C ROADS Current authorizations: Federal-aid highways (liquidation of contract authorization). 1, 543 130 1,373 1,900 19,000 17,000 1,900 2,000 Federal-aid highways (contract authorization) _ 11,939,233 3,100,084 Forest highways (liquidation of contract authorization) 11 1,281 Forest highways (contract authorization) 22,069 39, 250 Public lands highways (liquidation of contract authorization). 740 Public lands highways (contract authorization). 3,323 3,625 Inter-American Highway. _ _ _ 30,147 64, 227 Reimbursement to the highway fund, District of Columbia. Woodrow Wilson Memorial Bridge.. 557 557 Construction, operation, and maintenance of roads, Alaska: Appropriation 2,497 8,155 Contract authorization _ _ 2,835 1,540 Access roads (act of Sept. 7, 1950) 4,156 Elimination of grade crossings _ 319 389 Surveys and plans 32 32 Testing and research laboratory __ Tongass Forest highways, Alaska _ 7 War and emergency damage, Territory of Hawaii 83 Proposed for later transmission: Inter-American Highway Total, Bureau of Public Roads.. _ 1,999,412 3,225,870 (2) 1,570 6,583 200 14,321 2, 779 46, 250 728 3,725 49, 524 200 14,878 1,134 4,999 380 580 580 1,418 2,924 130 278 200 1,024 50 150 1,024 50 150 27,997 29,997 1,000 51, 250 40 700 2,692 36, 524 25,000 415 13,877 5,260 (2) (2) 11, 524 255 8,617 ft w H o 10,000 53,223 126,415 31, 732 107,147 32,064 10,000 550 10,000 805 30,141 3 o 1—1 NATIONAL BUREAU OF STANDARDS Q Current authorizations: Expenses Plant and equipment Construction of facilities Construction of laboratories: Appropriation Liquidation of contract authorization Purchase and installation of betatron Intragovernmental funds: Working capital fund Advances and reimbursements Total, National Bureau of Standards * Balance rescinded. 830 16? 814 895 156 268 337 1,140 412 340 48 62 1,368 217 90 1 2 9,645 21 • 5,907 327 8,048 17 3,924 235 5,386 7,858 10,564 8,101 8,718 6,113 5,386 9,533 11,500 600 12,100 10,000 283 10,283 1,187 217 90 1,681 317 1,968 4,271 5,890 3,462 4,271 7,888 DEPARTMENT OF COMMERCE—Continued ANALYSIS OF UNEXPENDED BALANCES—Continued 00 BY ORGANIZATION UNIT A N D ACCOUNT TITLE—Continued [In thousands] Fiscal year 1959 Balance, s t a r t of 1957 Balance, s t a r t of 1958 Balance, s t a r t of 1959 Balance, start of 1959 E s t i m a t e d expenditures from— Organization u n i t a n d account title Unobligated WEATHER Total Unobligated Total Unobligated Total N e w obligational author- N e w obli- Balances gational of prior ity authorauthoriity zations Unobligated BUREAU Current authorizations: Salaries a n d expenses E s t a b l i s h m e n t of meteorological facilities.._. Intragovernmental f u n d s : Advances and reimbursements Total, Weather Bureau T o t a l , D e p a r t m e n t of C o m m e r c e . $3,499 8,181 $4, 777 7,181 $40,000 275 $4, 215 6,827 $2,032 25 159 11,948 2, 057 11,839 995 12,118 40, 275 2, 229,139 3, 587,015 360, 981 633,168 174, 341 667, 546 951,009 $182,693 $355, 864 2, 004, 919 3,195, 294 $247,949 95, 370 $482,810 132, 475 $55,980 90, 590 $453,943 182, 942 9,378 8,284 13,367 4,516 22, 253 5, 518 22, 488 8,153 $2, 704 310 3,014 $34, 317 $4, 483 2,500 $155 275, 302 RECAPITULATION Enacted or recommended in this document: Appropriations Contract authorizations R e v o l v i n g a n d m a n a g e m e n t funds: P u b l i c enterprise funds I n t r a g o v e r n m e n t a l funds Proposed for later transmission: Appropriations T o t a l , D e p a r t m e n t of C o m m e r c e . . » E x c l u d e s capital transfer in 1959 of $11 t h o u s a n d . $83,112 50, 553 >$937. 949 31,372 10,155 28, 400 7,457 $524, 888 $275, 282 26, 431 4,366 13,060 2, 229,139 3, 587,015 633,168 174, 341 667, 546 951, 009 550 527, 788 275,302 DEPAKIMENT OF D E F E N S E — M I L I T A R Y FUNCTIONS ANALYSIS OF UNEXPENDED BALANCES BY ORGANIZATION UNIT AND ACCOUNT TITLE [In thousands) Balance, start of 1957 Organization unit and account title Unobligated Balance, start of 1958 Unobligated Total Balance, start of 1959 Unobligated Total Fiscal year 1959 New obligational authority Total Balance, start of 1960 Estimated expenditures from— New Balance of obligational prior authority authority Unobligated Total O F F I C E OF T H E S E C R E T A R Y OF DEFENSE Current authorizations: Salaries and expenses Office of Public Affairs: Salaries and expenses. Advanced Research Projects Agency: Salaries and expenses __ . _. Proposed for later transmission (under existing legislation) : Advanced Research Projects Agency: Salaries and expenses Total, Office of the Secretary of Defense $880 $1,064 $1,187 $15,900 $15,050 $762 $1,275 31 40 43 500 451 40 52 340,000 194,109 5,000 $40,000 145, 891 40,000 147,218 5,000 911 1,104 6,230 356, 400 209,610 5,802 475 12, 426 588 8,755 638 21,155 18, 620 30,000 17,990 18,000 510 13,500 I N T E R S E R V I C E ACTIVITIES Current authorizations: Claims Contingencies ._ 758 19,655 DEPARTMENT OF DEFENSE—-MILITARY FUNCTIONS—Continued 00 O ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE—Continued [In thousands] B a l a n c e , s t a r t of 1957 Balance, start of 1958 B a l a n c e , s t a r t of 1959 Unobligated Unobligated Unobligated E s t i m a t e d expenditures from— Organization u n i t a n d a c c o u n t title INTERSERVICE Balance, s t a r t of 1960 Fiscal year 1959 Total Total Total New obligational authority Unobligated Total New Balance of obligational prior authority authority w H o ACTIVITIES—Con. Currant authorizations—Continued $3,179 31 C o u r t of M i l i t a r y A p p e a l s Interservice activities accounts: $15,000 5,300 45 6,200 $33,374 17, 940 49 1,951 1,600 451 13,081 509 38,066 1,500 509 18,000 $1,105 12,888 21,638 $27,440 26 $23,374 19, 440 48 6,200 $85,000 600,000 380 $60,000 596,200 334 miscellaneous 9,521 $2,027 4,911 11, 631 6,445 55, 694 27, 215 62, 547 10,255 3,311 24, 315 5,737 56,066 $5,605 74, 929 22,042 M i l i t a r y c o n s t r u c t i o n , foreign c o u n t r i e s . Public enterprise f u n d s : Acquisition, rehabilitation, and rental of W h e r r y A c t h o u s i n g Proposed for later transmission ( u n d e r proposed legislation): 74,894 34,929 50,000 42,112 20, 526 176, 088 90,487 202, 767 27,647 159,391 784,000 734,636 94,952 11,581 20, 066 29,929 (s) 3 20,000 3 o > $2,450 C o n s t r u c t i o n of s h i p s , M i l i t a r y Sea T o t a l , interservice activities I 22,743 133,803 W D E P A R T M E N T OF T H E A R M Y Current authorizations: Military personnel , . . _, J Operation and maintenance.... „ „„„.„_._ :,009 Reserve personnel __! Army National Guard ..-. Research and development 28,552 Procurement of equipment and missiles.. 2,524,767 National Board for Promotion of Rifle Practice-.-Alaska Communication System: Operation and maintenance 610 Construction 1,361 Military construction, Army 303,306 Military construction, Army Reserve 24,228 Forces Preparation for sale or salvage of military property (indefinite special account) Miscellaneous expired accounts Public enterprise funds: I Defense housing Intragovernmental funds: Army industrial fund 562,448 Army management fund— j 1,000 Army stock fund 859,853 Advances and reimbursements. — 5,408 Proposed tor later transmission (under proposed legislation): Military personnel Reserve personnel j Army National Guard i Military construction, Army | Total, Department of the A r m y . . . See footnotes at end of table. 4,319,542 175,257 685,660 18,917 52,696 310,102 5,635,948 -7,636 63,163 33,828 1,595,891 191,126 886,092 38,267 59,859 308,232 4,085,669 100,079 20,780 428,300 184,126 931,009 41, 467 66,559 302,084 2,838,278 52 2,625 1,361 712,172 35 857 161,262 1,068 1,268 501,634 56,889 28, 076 71,273 599 131,262 1,133 768 451,634 8,801,135 563 790 963 461,874 1,091 679, 245 3,608 260,629 782 536,093 5,322 386,032 1,000 774, 879 835 187,402 782 720,291 1,942 6, 951,819 300 220 5,500 4,700 1, 900, 632 5,812, 782 180,000 665,000 32,000 60,000 227,000 1,091,000 20,000 164,000 12,000 8,000 320,000 162,000 12,000 8,000 35,000 i, 036,000 6,549, 920 69,350 25,780 I 173,300 800 100 290,000 35,000 22,000 440 3,021,734 3,145,000 2, 327,000 153,000 240,000 233,000 210,000 81,273 1,983 1,871 337,584 2,802 791,379 15, 797 3,105,200 3,040,000 185,000 298,000 471,000 1,405,000 21,076 2,000 -400 590 | -253,000 500 333,963 1,000 | 619,821 185 131,262 j 2,330,080 1,376,926 I DEPARTMENT OF D E F E N S E — M I L I T A R Y FUNCTIONS—•Continued 00 to ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT A N D ACCOUNT TITLE—Continued [In t h o u s a n d s ] B a l a n c e , s t a r t of 1957 Balance, start of 1958 Balance, s t a r t of 1959 Unobligated Unobligated Unobligated Balance, s t a r t of 1960 Fiscal year 1959 E s t i m a t e d expendit u r e s from— Organization u n i t a n d a c c o u n t t i t l e Total Total Total New [obligationalj authority Unobligated Total New B a l a n c e of obligational prior authority authority M o w D E P A R T M E N T OF T H E NAVY Current authorizations: M i l i t a r y personnel, N a v y R e s e r v e personnel, N a v y N a v y personnel, general expenses M i l i t a r y personnel, M a r i n e C o r p s R e s e r v e personnel, M a r i n e C o r p s Marine Corps procurement M a r i n e C o r p s troops a n d facilities Aircraft a n d related p r o c u r e m e n t Aircraft a n d facilities. S h i p b u i l d i n g a n d conversion S h i p s a n d facilities P r o c u r e m e n t of o r d n a n c e a n d a m m u n i tion O r d n a n c e a n d facilities M e d i c a l care Civii engineering ... Research a n d d e v e l o p m e n t Servicewide s u p p l y a n d finance Servicewide operations _ _ $5,293 314,102 7,710 2,022, 229 912, 976 4,371 2,432 19,002 202 $40,661 14,719 16,482 26,122 3, 266 786, 522 59,098 5, 540,154 266,335 2, 549,850 264,115 486,822 56, 427 3,240 31,005 332,187 15,693 18,188 $3,994 387,132 4,068 1, 790, 263 955,907 6,006 157,412 4, 528 22, 725 748 $47, 795 15,927 16,572 35, 630 4, 759 741, 925 47,833 5,096, 750 279, 219 3,109, 559 248, 454 484,098 69, 059 4,675 24, 424 351, 228 15,205 26, 099 $4, 988 259,097 2,005 1,441, 562 1,217 1,026,030 8,991 49,279 1,839 2,998 22, 725 700 $61, 795 16,695 19,711 40,079 5, 759 548, 571 51,329 4,779,272 267, 436 3, 587, 284 265, 946 367, 689 60,059 6,375 26, 267 321, 959 16, 240 28, 499 $2,301,818 84,735 86, 305 593,606 23,000 30,000 168, 252 2,069,105 840, 548 1, 381,000 789, 238 460,235 149, 850 88, 532 126,554 641,045 312,637 113,257 $2, 255,000 68, 000 73, 500 557,000 18, 500 131,000 250,000 650,000 120,000 611, 000 $135,000 15,500 9,500 33,000 4,000 175,000 35, 000 1, 850,000 190,000 1,187,000 183, 000 87,835 115,000 81, 900 106,000 339, 800 294,000 90,000 258,365 37,000 5,100 20,000 260, 000 16,000 20,000 $1,988 96,097 5 1,284,667 217 859,530 7,391 36,514 839 $73, 613 17, 930 121,716 43,685 6,259 » 398, 571 ' 52,181 i 4, 710,594 J 264,767 i 3, 654, 784 i 259, 584 i 463,124 i 56,909 7,907 i 25,221 363,204 i 18,127 31, 750 o w w > m Na ?al petroleum reserves. Military construction, Navy Construction of ships. , Contract authorization . Military construction, Naval Reserve Forces Ordnance for new construction Contract authorization Preparation for sale or salvage of military property (indefinite special account) Construction, water supply facilities, San Diego, Calif F acilit ies Increase and replacement of naval vessels, armor, armament, and ammunition Increase and replacement of naval vessels, construction and machinery Public works, Bureau of Yards and Docks.,. Research Permanent authorizations. Ships' stores profits (indefinite special account) -. Public enterprise funds; Defense housing Laundry service. Naval Academy Intragovernmental funds: Marine Corps stock fund Naval working fund Navy industrial fund Navy management fund Navy stock fund Proposed for later transmission: Undei existing legislation: Shipbuilding and conversion. Procurement of ordnance and ammunition Research and development See footnotes at end of table. 185,795 40,557 18,428 2,788 540,617 77, 730 18,428 35,397 8,112 21,000 47,077 19, 790 21,000 177,927 142,927 25,725 12, 725 157 473,049 13,214 1,882 798 1, 443 24,477 4,392 1,123 1,882 1.683 157 308,000 4,000 14,000 2,000 15,000 13, 877 1,115 240 30,927 1, 725 1,323 877 238 30 O 175 175 6 6 2,227 120 62,186 7,029 774,430 61,795 373,293 80,262 24,866 296,803 168,962 505,202 347 77 33,321 6.318 | 850,687 52,896 | 95,941 10,477 2,392 923 30 2,227 165,049 9,214 2, 303 2, 303 o -330 27 459 29 » 561 > 53,530 10,341 147,661 101, 233 342,328 -17,000 4,500 -8,000 55,251 -40,000 26. 621 3,818 587,687 3,896 76, 718 i 6 50,530 5,841 155,661 45,982 1271,078 276,000 60,000 7,000 216,000 28,800 5,200 28,800 5,200 2,303 2,303 580 54 681 118 29,521 6,318 632,687 12,896 130,968 116,000 8,100 8,100 91 CO DEPARTMENT OF D E F E N S E — M I L I T A R Y FUNCTIONS—Continued ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE-Continued [In thousands] B a l a n c e , s t a r t of 1957 Balance, s t a r t of 1958 B a l a n c e , s t a r t of 1959 Unobligated Unobligated Unobli gated Fiscal y e a r 1959 Balance, s t a r t of 1960 E s t i m a t e d expendit u r e s from— Organization u n i t a n d a c c o u n t title Total Total Total New obligational authority New B a l a n c e of obligational prior authority authority Unobligated Total DEPARTMENT OF T H E NAVY—Continued Proposed for later t r a n s m i s s i o n - C o n . U n d e r proposed legislation: M i l i t a r y personnel, N a v y _. R e s e r v e personnel, N a v y M i l i t a r y personnel, M a r i n e C o r p s - . R e s e r v e personnel, M a r i n e Corps . Military construction, N a v y . . Military construction, N a v a l Reserve Forces T o t a l , D e p a r t m e n t of t h e N a v y . . $5,008,280 $12,320,023 $4,578,325 $12,067,192 $121,000 4,000 20,000 1,000 281,500 $117,400 3,900 19,700 1,000 45,000 $84,500 236,500 8,000 2,000 4,000 6,000 $3,908,410 $11,956,898 10, 720,000 6,060, 955 $4,852,045 3,139,656 11,653,448 10,647,374 2, 010,021 415,106 849,042 5,888,800 2,146,000 719,000 4,100,000 1, 305,000 575,000 380,000 3,335,000 5,317,000 849,000 340,000 733,000 2,882,434 531,192 40,000 J 9, 554,174 t 2,522,021 414,106 881,042 $3,600 100 300 DEPARTMENT OF THE AIR FORCE C u r r e n t authorizations: Aircraft a n d missile p r o c u r e m e n t _ . , . . . . A ircraft a n d missile s u p p o r t . Research a n d d e v e l o p m e n t Operation a n d maintenance _ 4. 594,099 752,025 38, 763 10,120 13, 206, 746 2,001, 918 473, 968 1, 288, 566 4, 556,846 422,129 76,600 9,336 12,232,016 2, 203, 321 469,399 886, 253 3, 376, 534 391,092 40,000 Military personnel Reserve personnel Air National Guard -. Military construction, Air Force -. Contingencies. Preparation for sale or salvage of military property (indefinite special account) _. Special procurement Replacement of personal property soldIntragovernmental funds: Air Force industrial fund Air Force management fund Air Force stock fund Advances and reimbursements Proposed for later transmission: Under existing legislation: Aircraft and missile support Research and development Under proposed legislation: Military personnel Reserve personnel Air National Guard -. Military construction, Air Force Total, Department of the Air Force. Proposed for later transmission: Department of Defense: Amount anticipated to be "reserved" from proposed 1959 "Military assistance" appropriations fot orders to be placed with the Department of Defense (this sum is excluded from the amounts shown in the "Analysis of unexpended balances" for "Military assistance").. 344,163 367,012 457 6,006 12,826 251, 747 7,105 115,226 328,491 23 111, 008 6,832 84, 482 1, 435, 856 112,608 7,832 94, 482 267,012 6,237 6,104 100,461 7,120 54,473 194,208 60 81,328 1,000 140,461 180,000 6,009,749 18,910, 518 40,208,675 5, 544,725 13,235,271 17,687,315 36,910,197 4, 507,427 10,344,116 3,737,000 50,500 238,100 3,625,000 41,000 165,000 115,000 8,000 71,000 795,000 109,608 9,332 96, 582 470,856 12, 000 10,200 1,800 30 1,878 268 11 1,265,856 1,878 298 11 1,878 388 21 30, 000 Total, Department of DefenseMilitary Functions _.. 15,358,097 See footnotes at end of table. 110,169 5,538 50, 551 1, 320,897 863 81,652 11,041 234,208 60 -40 10,010 19,000 303,000 10,000 303,000 10,000 467,000 16,511,- 34,446,770 182,000 3,000 12,600 955,000 178,700 2,800 4,500 75,000 18,044,000 39,145,400 23,457,321 81,497 1,000 127,461 81,692 1,031 215,208 60 o 467,000 267,012 3,300 200 8,100 880,000 9,038,800 3,930, 596 15,249, 469 1,075,000 1,075,000 9,584,921 33,794,472 16,321,679 w w 3 o > 00 C7I D E P A R T M E N T OF D E F E N S E — M I L I T A R Y FUNCTIONS—Continued ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE—Continued [In t h o u s a n d s ] B a l a n c e , s t a r t of 1957 Balance, start of 1958 B a l a n c e , s t a r t of 1959 Unobligated Unobligated Unobligated Balance, start of 1960 Fiscal year 1959 E s t i m a t e d expendit u r e s from— Organization u n i t a n d a c c o u n t title Total Total Total New jobligational authority Unobligated Total ;6,129, 764 '$29,423,603 22, 716 1, 863, 667 * 31,394 1,623, 375 1, 568,774 2,716,100 New Balance of obligational prior auauthority thority RECAPITULATION Enacted or r e c o m m e n d e d in t h i s document: A ppropriations $12,340, 551 $37, 494, 625 $10,861, 730 $34,998, 835 39, 428 Contract authorizations 39,428 Revolving and management funds: 75, 758 120 76, 256 P u b l i c e n t e r p r i s e funds 97 2,297, 783 2, 674, 502 1,835,107 I n t r a g o v e r n m e n t a l funds 2,978,021 Proposed for later t r a n s m i s s i o n : Appropriations T o t a l , D e p a r t m e n t of Military Functions >$36,848,300 $22, 585,321 $15, 432,273 23, 466 2,197, 925 36, 691 1,892, 471 326,000 1,095.000 2, 297,100 872,000 10,344,116 34,446,770 39,145, 400 23, 457,321 899,000 Defense— 15, 358, 097 40,208, 675 13, 235,271 '7 36,910,197 i E x c l u d e s a m o u n t s r e p r e s e n t i n g deliveries against prior year c o m m o n i t e m orders s h o w n on t h e t a b l e a t t h e end of t h e c h a p t e r . 2 E x c l u d e s capita] transfer of $550 t h o u s a n d in 1959. 3 E x c l u d e s capital transfer of $450 t h o u s a n d in 1959. * E x c l u d e s capital transfer of $1,000 t h o u s a n d in 1959. $7, 796, 725 $31, 422, 608 » Reflects transfers b e t w e e n accounts. 6 I n c l u d e s $2,642,320,000 of m i l i t a r y assistance ? I n c l u d e s $2,251,611,737 of m i l i t a r y assistance s I n c l u d e s $2,298,889,737 of m i l i t a r y assistance s I n c l u d e s $2,281,191,737 of m i l i t a r y assistance fund fund fund fund 16, 321, 679 reservations. reservations. reservations, reservations. 9, 584, 921 8 33,794,472 DEPARTMENT OF D E F E N S E — C I V I L FUNCTIONS ANALYSIS OF UNEXPENDED BALANCES BY ORGANIZATION UNIT AND ACCOUNT TITLE [In thousands] 00 Balance, start of 1957 M CO Balance, start of 1958 Fiscal year 1959 Balance, start of 1959 Estimated expenditures from— Organization unit and account title Unobligated Total Unobligated Total Unobligated Total New obligational author- New obli- Balance gational of prior ity authorauthority ity Balance, start of 1960 Unobligated Total a o D E P A R T M E N T OF T H E ARMY 3 CEMETERIAL EXPENSES Current authorizations: Salaries and expenses Entombment of unknown Americans of World War II and Korea . $1,178 $1,248 $1,163 $159 159 59 1,391 159 1,407 1,222 6,915 5,800 1,159 1,178 1,200 92,020 2,955 1,181 1,262 181,187 23,477 644 8,615 5,445 2,108 209,282 17,678 704 13,866 2,888 217,062 18,528 889 14,581 7,800 449,920 100,000 11, 200 57,000 7,000 290, 700 83,000 10, 315 46,500 2,500 187,350 18,000 885 12,000 1,188 188,932 17, 528 889 13,081 7 866 100 86 14 14 241 6 288 14 789 $1,391 Total, cemeterial expenses $6,915 $5,800 $1,100 59 O w RIVERS AND HARBORS AND FLOOD CONTROL Current authorizations: General investigations _ Construction, general Operation and maintenance, general ._ General expenses ... Flood control, Mississippi River and tributaries. United States Section, Saint Lawrence River Joint Board of Engineers _ Niagara remedial works $709 60,698 10,573 $1,680 87,815 1,305 4,160 GO DEPARTMENT OF D E F E N S E — C I V I L FUNCTIONS—Continued ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE—Continued [In thousands] Fiscal year 1959 Balance, s t a r t of 1958 Balance, s t a r t of 1957 Balance, s t a r t of 1959 Balance, start of 1959 E s t i m a t e d expenditures from— Organization u n i t a n d a c c o u n t t i t l e Unobligated DEPARTMENT OF T H E Total Unobligated Total Unobligated Total N e w obligational a u t h o r - N e w obli- Balances gational of prior ity authoriauthorzations ity Unobligated Total ARMY-Continued R I V E R S AND H A R B O R S AND F L O O D C O N T R O L — C o n t i n u e d Permanent authorizations: P a y m e n t s to States, F l o o d Control Act of 1954 (indefinite special account) . Rivers and harbors and flood control, special expense funds: H y d r a u l i c mining in California, debris fund (indefinite special account) _ _ M a i n t e n a n c e and operation of d a m s and other improvem e n t s of navigable waters (indefinite special account) Intragovernmental f u n d s : R e v o l v i n g fund, Corps of Engineers A d v a n c e s and reimbursements, rivers and harbors and flood control-. . _ Proposed for later transmission (under existing legislation): Operation and maintenance, general $1, 472 $1, 472 $1,461 $1. 461 3 3 14 17 152 152 152 7,956 28.295 6, 570 4 4 $1,500 $1,500 $1, 500 $1,500 $1.500 $1,500 152 150 150 150 150 150 150 29,620 6,289 29,673 6,299 29,673 7,949 252,955 5,000 83,537 245,984 110^.058 275.182 102, 899 290.285 5,000 627,670 $137,601 227, 399 ADMINISTRATION, RYURYV ISLANDS Current authorizations: Administration Construction of utility systems. 291 Total, administration, Ryukyu Islands 344 893 291 219 2,442 2,862 2,110 1,901 3,150 6,000 2,987 2,200 213 800 9,150 5,187 1,013 2,000 I !7,597 4,800 19,250 14,437 4,286 2,675 2,633 562 425 327 I 12,709 -474 10,916 2,000 PANAMA CANAL Current authorizations: Canal Zone Government: Operating expenses _ Capital outlay _ _ _ Panama Canal Bridge Public enterprise funds: Panama Canal Company: Panama Canal Company mnd__. Total, Panama Canal 239 15,017 _r 30,880 22.868 36,284 666 54 2.633 889 425 39,531 17,305 36,554 43,542 18,025 40, 501 11.789 11,439 11, 439 50 11,389 21,398 3,146 MISCELLANEOUS ARMY ACCOUNTS Current authorizations: Civilian relief in Korea Permanent authorizations: Payment to claimants, disaster at Texas City, Texas, Department of the Army (indefinite) Public enterprise funds: Defense production guaranties Total, miscellaneous Army accounts 30 25, 733 26,256 11.789 1,541 2,540 1,918 1,918 2,503 2,503 -405 2,908 13,942 13,942 -355 14,297 4,909 27,274 28,?796 13, 707 13. 737 4,503 6,878 5, 594 7,969 D E P A R T M E N T OF T H E NAVY Public enterprise funds: Defense production guaranties „ 5, 397 DEPARTMENT OF D E F E N S E — C I V I L FUNCTIONS—Continued ANALYSIS OF UNEXPENDED BALANCES—Continued CO O BY ORGANIZATION UNIT AND ACCOUNT TITLE—Continued lln thousands] Balance, start of 1957 Balance, start of 1958 Balance, start of 1959 Fiscal year 1959 Estimated expenditures from— Organization unit and account title Unobligated Total Unobligated Total Unobligated Total New obligational author- New obli- Balance gational of prior ity author- authority ity Balance, start of 1960 Unobligated Total w DEPARTMENT OF THE AIR FORCE O Permanent authorizations: Wildlife conservation, etc., Eglin Field Reservation (indefiPublic enterprise funds: Defense production guaranties. _. Total, Department of the Air Force __ Total, Department of Defense—Civil Functions $17 $18 $16 $17 $15 $15 7,485 7,485 9,257 9,257 10,557 10, 557 7,502 7,503 9,273 9,274 10,572 10,572 28 140,766 327,127 163,258 351,330 150,407 362, 728 . $104,260 $251,045 $117,051 $263,035 $108,784 $273,472 $28 $23 $1 $19 $19 -1,193 11,750 11, 750 23 -1,192 11,769 11, 769 685,410 470,009 230,742 65,364 347,387 [ $28,094 $260,631 |$685,410 $470,009 $225,742 J 30,971 [ 6,299 57 083 29,673 65,364 347,387 RECAPITULATION Enacted or recommended in this document: Appropriations....Revolving and management funds: Public enterprise funds Intragovernmental funds _ Proposed for later transmission: _ 28, 546 7,960 47,783 28,299 39,637 6,570 58,675 29,620 35,334 6,289 54,583 29,673 5.000 Total Department of Defense—Civil Functions 140,766 327,127 163,258 351,330 150,407 362, 728 5,000 685,410 470,009 230, 742 ft o > DEPARTMENT OF HEALTH, EDUCATION, AND W E L F A R E ANALYSIS OF UNEXPENDED BALANCES BY ORGANIZATION UNIT AND ACCOUNT TITLE [In thousands] Balance, start of 1957 1 Balance, start of 1958 Fiscal year 1959 Balance, start of 1959 Organization unit and account title Unobligated Total Unobligated Total Unobligated Balance , start of 1960 Estimated expenditures from—• Total New obligational author- New obli- Balances gational of prior ity authorauthority ity Unobligated Total ft w o w A M E R I C A N P R I N T I N G HOUSE FOR T H E BLIND 3 o Current authorizations: Education of the blind _ $400 M $400 o F O O D A N D DRUG ADMINISTRATION Current authorizations : Salaries and expenses _ Salaries and expenses, certification, inspection, and other services (indefinite special account) Intragovernmental funds: Advances and reimbursements Total, Food and Drug Administration.- > $308 $640 724 $397 $697 9,410 8,650 $650 $807 $385 521 $415 551 1,255 1,119 136 $415 551 385 918 415 1,248 10,665 9, 769 786 415 1,358 318 2,975 2,582 318 98 640 1,130 F R E E D M E N ' S HOSPITAL Current authorizations: Salaries and expenses _ 308 276 393 \ l.—= CO DEPARTMENT OF H E A L T H , EDUCATION, AND W E L F A R E — C o n t i n u e d CD ANALYSIS OF UNEXPENDED BALANCES- Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE--Continued [In thousands] Balance, start of 1957 Balance, start of 1958 Fiscal year 1959 Balance, start of 1959 Estimated expenditures from— Organization unit and account title Unobligated Total Unobligated Total Unobligated Total New obligational author- New obliity gational authority Balances of prior authority Balancti, start ofl 960 Unobligated Total w Hi o OALLAUDET COLLEGE Current authorizations : Salaries and expenses . Construction- $2,131 $6 2,243 2,131 2,249 . ___ .- $2,612 $9 4,191 2,612 4,200 $1,944 $9 2,992 $785 123 $785 100 $2,800 $57 $9 215 1,944 3,001 908 885 2,800 57 224 o O Total, Gallaudet College - > HOWARD UNIVERSITY Current authorizations: Salaries and expenses__ . Plans and specifications._ Construction of men's dormitory (liquidation of contract authorization) __ _ Contract authorization Construction of buildings _ Construction of administration building (liquidaConstruction of auditorium-fine arts building (liquidation of contract authorization) 41 97 119 15 105 33 8 105 16 1,353 286 1,923 1,353 286 5,418 244 735 1,661 1,292 735 2,581 583 722 735 1,194 28 64 1,611 1,611 1,611 1,611 4,000 171 (163) 1,311 860 3,850 171 100 5 8 155 11 572 125 572 398 163 796 1,311 860 Construction of biology-greenhouse (liquidation of contract authorization) __ Contract authorization Construction of law school (liquidation of contract authorization) Contract authorization _ Total, Howard University 50 421 134 421 540 53 540 6,253 10,096 421 15 421 4,687 6,793 1,313 4,221 4,171 4,021 33,750 33,750 2,375 705 1,996 O F F I C E OF EDUCATION Current authorizations: Promotion and further development of vocational education . Further endowment of colleges of agriculture and the mechanic arts _ Grants for library services Assistance for school construction _ Salaries and expenses President's Committee on Education Beyond the High School . .._ Payments, to school districts Salaries and expenses, White House Conference on Education Permanent authorizations: Colleges for agriculture and the mechanic arts Promotion of vocational education, act Feb. 23, 1917 (indefinite) — __. Intragovernmental funds: Advances and reimbursements . _ . . Proposed for later transmission: Under existing legislation: Assistance for school construction Under proposed legislation: Assistance for school construction Payments to school districts Promotion of science and general education Total, Office of Education 20 12, 098 86, 335 260 19,103 610 118, 956 1,128 8,000 32 25, 869 10, 360 100 60, 656 1,078 2,502 3,000 850 7,950 2,502 3,000 800 7,197 33,800 100 47,800 1,078 12,906 753 28, 500 5,300 10 2 12,098 96,967 4 19,103 146,619 8,000 2,550 2, 550 7,138 7,138 2 2 53,000 44,800 148,636 20,500 110,000 145, 500 2,000 88, 000 75,000 333, 740 221,937 8,200 18,500 22,000 70, 500 122, 280 138,159 DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued CO ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE—Continued [In thousands] Balance, start of 1958 Balance, start of 1957 Fiscal year 1959 Balance, start of 1959 Estimated expenditures from— Organization unit and account title Unobligated Total Unobligated Total Unobligated Total New obligational author- New obli- Balances of prior gational ity authoriauthorty ity Balance, start of 1960 Unobligated Total w o OFFICE OF VOCATIONAL REHABILITATION Current authorizations: Grants to States and other agencies. Training and traineeships... . Salaries and expenses Proposedforlater transmission (under existing legislation) : Grants to States and other agencies ... _. _ $161 82 85 $341 309 97 $569 466 111 $50,600 4,800 1,400 $49,231 4,134 1,269 $569 466 111 $1,369 666 131 > W 100 Total, Office of Vocational Rehabilitation " 100 328 747 1,246 56,800 54,634 1,246 2,166 303 33 516 44 1,088 59 22,889 2,165 21, 370 2,100 1,030 50 1,577 74 155 161 166 356 281 556 6,500 4,400 5,386 2,500 4,050 4,660 250 540 4,000 381 742 PUBLIC HEALTH SERVICE Current authorizations: Assistance to States, General Grants and special studies, Territory of Alaska... Construction, mental health facilities, Territory of Alaska . Control of venereal diseases. ... _ t-H o Communicable disease activities Sanitary engineering activities . Grants for waste treatment works construction Grants for hospital construction. Salaries and expenses, hospital construction services.Hospitals and medical care Foreign quarantine activities Indian health activities Contract authorization _ _. Construction of Indian health facilities General research and services, National Institutes of Health National Cancer Institute Mental health activities National Heart Institute Dental health activities Arthritis and metabolic disease activities Allergy and infectious disease activities Neurology and blindness activities Grants for construction of health research facilities-. Operations, National Library of Medicine Retired pay of commissioned officers Salaries and expenses Surveys and planning for hospital construction Construction of biologies standards laboratory building __. Construction of surgical facilities Buildings and facilities, Cincinnati, Ohio Construction of animal quarters ._ Construction of dental research building Construction of library facilities Construction of research facilities General office building Grants to States for poliomyelitis vaccination Construction of housing facilities for animals Public enterprise funds: Operation of commissaries, narcotic hospitals 200 339 $79,663 3,641 1,558 6 213 1,569 j 3,500 3,500 I 2,437 33,396 35,110 I 64 18 29 I 430 1,860 63,156 264,591 93 3,593 279 5,252 616 12,970 6,200 12.815 45,000 75.000 1,320 44,309 3,983 39, 609 616 2,374 5,695 10,400 5,000 8,000 1,227 40,500 3,740 34,134 616 759 441 1,966 26,596 141 2, 641 7,497 4,150 3,912 534 1,811 1,619 2,410 35, 596 191 398 498 17, 742 55,923 37,697 34, 712 6,293 20, 592 17,497 20,727 30,000 1,415 1,600 5,325 15, 550 48, 370 32, 700 31, 240 5, 600 18, 000 15, 560 18, 200 10,000 1,220 1,600 4,710 $79,050 9,473 1,815 6,212 2,473 1,989 1 260 1,289 280 | 736 49,156 240, 391 93 3,681 253 4,853 616 U , 840 189,534 i 69 { 2, 275 I 170 3,876 678 I 4,691 1, 205 | 3,163 I 1,8! 2,393 I 126 I 1,090 j 524 1,511 105 1 1 406 3,429 1,630 61 704 70 330 874 169 507 16 425 1,530 29 19 405 1,800 46,100 104,000 93 3,500 220 5,050 530 $45, 330 2,475 57,056 227,591 93 3 902 302 5,677 616 7,344 8,000 1,450 5,330 3,500 2,360 400 1, 200 1,240 1,700 30,000 160 2 603 2,316 3, 237 25,596 226 450 663 1,429 1,540 1,200 500 1,040 60 129 50 129 10 193 75 118 30 -2 3, 383 9,720 5,647 5,024 827 229 20 32 DEPARTMENT O F H E A L T H , E D U C A T I O N , AND W E L F A R E — C o n t i n u e d ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE-Continued [In thousands] Balance, start of 1958 Balance, start of 1957 Fiscal year 1959 Balance, start of 1959 Estimated expenditures from— Organization unit and account title Unobligated Total Unobligated Total Unobligated New obligational author- New obli- Balances gational of prior ity authorauthority ity Total Balance, start of 1960 Unobligated Total PUBLIC H E A L T H SERVICE—Continued Intragovernmental funds: National Institutes of Health management fund Service and supply fund Working capital fund, narcotic hospitals. . Total, Public Health Service $4 -5 $577 64 $1, 200 657 49 $347,342 220, 779 45,991 374,937 3,154 2,400 700 87 125 87 110 5 $553 31 $497 54 $550 28 $650 29 $577 46 $1,200 661 44 123,760 258,065 115,903 364,675 91,120 420,969 $522,089 726 700 417 5 SAINT ELIZABETHS HOSPITAL Current authorizations: Salaries and expenses _ Major repairs and preservation of buildings and grounds Construction, continued treatment building Construction and equipment, treatment and cafe teria building..* Miscellaneous accounts: Building for storerooms, etc Construction and equipment, treatment building. 634 301 812 76 20 264 1 317 147 1 198 754 15 20 Construction and equipment, maximum security building _ Total, Saint Elizabeths Hospital SOCIAL SECURITY ADMINISTRATION Current authorizations: Grants to States for public assistance Salaries and expenses, Bureau of Public Assistance. Salaries and expenses, Children's Bureau Salaries and expenses, White House Conference on Children and YouthGrants to States for maternal and child welfare _. Salaries and expenses, Office of Commissioner . . . Public enterprise funds: Operating fund, Bureau of Federal Credit Unions.. Intragovernmental funds: Advances and reimbursements Total, Social Security Administration O F F I C E OF T H E SECRETARY Current authorizations: Salaries and expenses Salaries and expenses, Office of Field Administration.__ Salaries and expenses, Office of the General CounselSurplus property utilization ___ Civil defense activities _ . Defense community facilities and services.. Intragovernmental funds: Working capital fund ~ _. Advances and reimbursements _ Total, Office of the Secretary.... Total, Department of Health, Education, and Welfare 665 18 965 5,655 630 1,782 1,188 6,997 1,355 3,366 2,597 1,355 769 236,153 101 101 308,005 119 120 1,806,400 2,040 2,013 1, 498, 400 1,881 1,880 308,000 119 115 308,005 159 138 25 150 41,500 314 135 41,500 278 229,183 92 94 1 17 630 15 36 25 25 678 678 698 705 631 12 678 230,074 698 412 237,498 -93 651 213 631 -216 213 309,133 1,852,417 1, 543,858 308, 379 630 i 694 216 630 » 309, 263 95 112 135 1,819 1,615 135 204 117 39 21 4 78 43 33 2 78 161 47 35 2,418 505 632 2,239 453 585 161 47 35 179 52 47 84 248 36 103 271 4 105 267 2 84 660 103 621 105 647 $5,374 146,207 601,559 144,679 769,344 103,528 890,774 2,792,905 -8 119 275 2 $4,892 370 119 1 759 2,192,917 660,686 47,917 * 830,024 DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE—Continued ANALYSIS OF UNEXPENDED BALANCES—Continued BY OHGANIZATION UNIT AND ACCOUNT TITLE—Continued [In thousands] Balance, start of 1958 Balance, start of 1957 Balance, start of 1959 Organization unit and account title Unobligated Total Unobligated Total Unobligated Total $143,598 1,247 $597,982 1,925 $142,127 1,156 $765,468 1,772 $101, 567 583 $832,393 2,211 Fiscal year 1959 Balance, start of 1960 Estimated expenditures from— New obligational author- New obliity gational authority Balances of prior authority Unobli- RECAPITULATION Enacted or recommended in this document: Appropriations Contract authorizations Revolving and management funds: Public enterprise funds Intrago vemmental funds Proposed for later transmission: Appropriations Total, Department of Health, Education, and Welfare i Excludes capital transfer in 1959 of $50 thousand. ( 572 ^$2,516,905 $2,027, 917 705 947 715 734 1,370 650 728 146,207 601,559 144,679 769,344 103,528 $615, 786 681 2,389 53,100 $45,935 I 165,000 44,900 890, 774 2,792, 905 2,192, 917 660,686 276,000 650 760 47, 917 DEPARTMENT OF THE INTERIOR, ANALYSIS OF UNEXPENDED BALANCES BY ORGANIZATION TTNIT AND ACCOUNT TITLE [In thousands] Balance, start of 1957 Fiscal year 1959 Balance, start of 1959 Balance, start of 1958 Estimated expenditures from— New obligational author- New obli- Balances gational of prior ity author- authority ity Organization unit and account title Unobligated Total Unobligated Total Unobligated Total Balance , start of 1960 Unobligated Total D E P A R T M E N T A L OFFICES Current authorizations: Office of Saline Water Office of Oil and Gas Office of the Solicitor Office of Minerals Mobilization. Acquisition of strategic minerals Total, departmental offices .. $444 55 283 19 412 $825 550 2,873 262 $400 520 2,723 255 $400 30 150 9 412 $468 55 282 19 $1,838 $390 25 144 11 3,137 1,838 3,707 1,213 4,510 3,898 1,001 824 4 6 35 32 3 6 16,284 98 14,022 98 21,000 9,170 12,800 9,075 9,200 95 13,022 98 $376 34 123 17 _.. _ ..- 550 COMMISSION OF F I N E ARTS Current authorizations: Salaries and expenses BONNEVILLE POWER ADMINISTRATION Current authorizations: Construction m,- ,-- -r $4,644 24,832 31 399 DEPARTMENT OF THE INTERIOR—Continued o o ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE-Continued [In thousands] Balance, start of 1957 Balance, start of 1958 Organization unit and account title Unobligated Total Unobligated Total Fiscal year 1959 Balance, start of 1959 Estimated expenditures from— 1 New obligational | author- New obli- Balances gational of prior Unobli- 1 Total 1 ity author- authority gated ity Balance, start of 1960 Unobligated Total o w B O N N E V I L L E P O W E R ADMINISTRATION—Con. K-t Permanent authorizations: Continuing fund for emergency expenses (indefinite special Total, Bonneville Power Administration $116 $500 $326 $500 $500 $500 5,060 25,363 725 16,882 500 14,620 $30,170 $21,875 $9,295 134 50 190 50 190 50 663 50 126 50 735 50 $500 $500 500 13,620 50 72 50 50 122 792 794 SOUTHEASTERN P O W E R ADMINISTRATION Current authorizations: Operation and maintenance _. . Continuing fund (indefinite special account) . . Proposed for later transmission (under existing legislation): Operation and maintenance _ Total, Southeastern Power Administration . 67 50 184 50 1,052 1,193 469 176 50 307 847 ! 1,374 J 67 735 663 257 S O U T H W E S T E R N P O W E R ADMINISTRATION Current authorizations: Construction td 815 ! 580 1 o % o w w > w Operation and maintenance _ _ - _^^-_., C o n t i n u i n g fund (indefinite special account) _.. Total, Southwestern Power Administration BUREAU OF LAND 975 | 4,405 920 1 4,060 60 290 300 55 1,208 1,147 2,587 5,380 4,980 930 1,092 2, 057 600 167 4,185 4,658 282 20,940 4,435 786 17,945 2,336 440 3,025 3,828 260 248 4,155 2,929 368 1 2 3 10 2 3 10 50 50 11,065 1 238 11,065 1 238 46 987 300 47 885 300 1,352 2,226 769 1,747 2,220 305 1,732 4,158 451 2, 309 203 2,457 4,448 230 1 MANAGEMENT Current authorizations: M a n a g e m e n t of l a n d s a n d resources. _ Construction. ... R a n g e i m p r o v e m e n t s (receipt l i m i t a t i o n ) (indefinite) ._ P e r m a n e n t authorizations: E x p e n s e s , sale of t i m b e r , etc., o n reclamation lands (indefinite special account) _ L e a s i n g of grazing l a n d s (receipt limitation) P a y m e n t s to O k l a h o m a (royalties) (receipt limitation) P a y m e n t s to Coos a n d D o u g l a s C o u n t i e s , Oregon from receipts, Coos B a y W a g o n R o a d g r a n t l a n d s (indefinite special account) _ P a y m e n t s t o c o u n t i e s , Oregon a n d California g r a n t lands (indefinite special a c c o u n t ) _ P a y m e n t s to S t a t e s (grazing fees) _ _ P a y m e n t s to S t a t e s (proceeds of sales) (receipt l i m i t a t i o n ) . P a y m e n t s to S t a t e s from grazing receipts, etc., p u b l i c l a n d s o u t s i d e grazing districts (indefinite special account) P a y m e n t s to S t a t e s from grazing receipts, etc., p u b l i c lands w i t h i n grazing d i s t r i c t s (indefinite special a c c o u n t ) . . P a y m e n t s t o S t a t e s from grazing receipts, etc., p u b l i c l a n d s w i t h i n grazing d i s t r i c t s , miscellaneous (indefinite special account) P a y m e n t s t o S t a t e s from receipts u n d e r M i n e r a l Leasing Act (indefinite special a c c o u n t ) ._ _ P a y m e n t s t o T e r r i t o r y of A l a s k a , i n c o m e a n d proceeds, Alaska school l a n d s (indefinite special a c c o u n t ) . . P a y m e n t s t o A l a s k a , coal leases (indefinite special account) P r o p o s e d for later tic r e m i s s i o n (under existing legislation): M a n a g e m e n t of l a n d s a n d resources . __ T o t a l , B u r e a u of L a n d M a n a g e m e n t 60 I 1,153 300 1 1 1 w o I 59 O 88 85 85 183 98 85 85 59 43 43 261 218 43 43 2 1 4 10 6 4 4 30,388 29,388 25 90 3 90 1 22 22 15 121 2,525 6,566 2,512 7,287 767 9,401 68,487 61,893 > 1,000 22 22 100 21 7,367 248 8,628 t>0 O DEPARTMENT OF THE INTERIOR—Continued to ANALYSIS OF UNEXPENDED BALANCES—Continued o BY ORGANIZATION UNIT AND ACCOUNT TITLE—Continued [In thousands] Balance, start of 1957 Balance, start of 1958 Fiscal year 1959 Balance, start, of 1959 Organization unit and account title Unobligated Total Unobligated Balance». star of 1960 Estimated expenditures from— Total Unobligated New obligational author- New obli- Balances ity gational of prior author- authority ity Total Unobligated Total W O BUREAU OF INDIAN AFFAIRS w Current authorizations: Education and welfare services: Appropriation Permanent contract authorization. Construction __. Road construction and maintenance (liquidation of contract authorization): Appropriation _. _ Permanent contract authorization General administrative expenses _ Payment to Menominee Tribe of Indians Distribution of funds of the Creek Indians Payment to Klamath Tribe of Indians Miscellaneous accounts: Payment to Pine Ridge Sioux Tribe of Indians Payment to Indians, States, counties, etc., act of June 11,1940. $7,416 11,107 $3,539 420 2,042 10,610 1,695 14,185 197 $909 5 13,156 146 $4,808 396 2,924 6,914 2,414 14,685 218 148 13,122 75 3,874 14,685 399 100 85 2 2 539 147 2 147 2 509 12 $49,987 $9,813 13, 773 6,486 3,827 8,914 1 11,874 i 3,450 200 250 Payment to Sioux Indians for property losses, act of May 3, $1,841 $9,393 J $57,469 420 3,827 17,000 13,374 13,000 3,048 100 ( { [ $50 6 21 21 w t3 402 100 100 85 6 o 3,227 10,974 13,063 399 J 200 $7,482 50 Redemption of restricted Indian property subject to taxation _ Relocation of Yankton Sioux Tribe, Bureau of Indian Affairs Fulfilling treaties with Columbias and Colvilles. _ Fulfilling treaties with Winnebagoes Payments to Shawnee and affiliated Delaware Indians, Oklahoma, act of Dec. 22, 1927 .._ Payment to Indians of Klamath Agency, Oregon Payments to Indians of Round Valley Reservation, California, for lands.. Payment to absentee Shawnees, for lands Permanent authorizations: Claims and treaty obligations _ Other miscellaneous permanent appropriations (indefinite special accounts): Acquisition of lands and loans to Indians in Oklahoma act of June 26,1936 _ Indian arts and crafts fund Operation and maintenance, Indian irrigation systems Power systems, Indian irrigation projects Purchase of land for Rocky Boy's Reservation, Montana.. Colorado River Indian reservation, northern reserve Colorado River Indian reservation, southern reserve.Public enterprise funds: Revolving fund for loans.. _ Total, Bureau of Indian Affairs 5 107 3 3 107 3 3 2 3 1 2 3 3 3 3 3 3 3 3 3 3 2 3 2 3 2 3 2 3 2 3 2 3 1 2 1 2 1 2 1 2 1 | 2 1 2 | 1 51 1 51 1 1,844 2,022 1,132 16 7 140 10 10 3,000 1,487 126 406 2,527 1,059 100 12 53 11 13 11 59 2 2,125 1,102 11 38 16 7,833 7,946 7,676 7,676 29,350 44,439 44,511 25,181 57,702 96,119 150 30, 749 855 69,236 4,088 199 1,001 1,186 86,885 3,662 207 944 1 603 174 4, 752 123,237 27,500 4,164 300 1,518 67,851 5,462 271 444 2,268 1 9,770 935 11 13 11 1,831 622 2,636 1,132 j 53 7 140 100 i 12 w w o 1,788 651 2,983 1,154 2 o M ft 874 6,802 6,802 74,389 39,559 9,305 36,251 3,804 66,812 21,538 3, 929 ! 1,496 67, 757 5,462 271 100 22 94 970 56, 519 5,962 200 1 3,800 w w w BUREAU OF RECLAMATION Current authorizations: General investigations Construction and rehabilitation.. Operation and maintenance General administrative expensesEmergency fund Loan program See footnotes at end of table. 982 I 200 1 235 344 5,970 to o DEPARTMENT OF THE INTERIOR—Continued to o ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE-Continued [In thousands] Balance, start of 1958 Balance, start of 1957 | Balance, start of 1959 Estimated expenditures from— Organization unit and account title Unobligated Total Unobligated Total Unobligated Fiscal year 1959 Total New obligation^ author- New obli- Balances ity gational of prior author- authority ity Balance, start of 1960 Unobligated Total W H O BUREAU OF RECLAMATION—Continued w Permanent authorizations: Disposal of Coulee Dam community (indefinite special $84 $200 $66 3,200 3,200 600 600 $84 $134 Colorado River dam fund, Boulder Canyon project: Payment of interest on advances from the Treasury (indefiPayments to States of Arizona and Nevada (indefinite special account) Operation, maintenance, and replacement of project works, North Platte project (Gering and Fort Laramie, Goshen and Pathfinder irrigation districts) (indefinite special ac$18 $L8 $73 $73 41 41 81 81 641 581 803 1,868 506 4,870 $58 58 Payment to Farmers' irrigation district (North Platte project, Nebraska-Wyoming) (indefinite special account).. 4 8 125 30 $32 32 650 2 500 6,437 8 125 Public enterprise funds: Continuing fund for emergency expenses, Fort Peck project, 650 1,500 500 5,012 38,425 1 31,988 -1,300 5, 012 * a I n t r a g o v e r n m e n t a l funds* Advances and reimbursement Proposed for later t r a n s m i s s i o n : U p p e r Colorado R i v e r B a s i n fund _ T o t a l , B u r e a u of R e c l a m a t i o n _ GEOLOGICAL 1,000 1,000 32,583 76,024 32,443 91,970 202,415 132, 270 2,108 4,593 36, 750 35,800 98,415 5,553 77,103 SURVEY Current authorizations: S u r v e y s , i n v e s t i g a t i o n s , a n d research P e r m a n e n t authorizations: P a y m e n t s from proceeds, sale of w a t e r , M i n e r a l Leasing Act of 1920, sec. 40 (d) (indefinite special account) — Intragovernmental funds: Advances and reimbursements. 10 10 10 11 59 125 1,268 568 3,386 T o t a l , Geological S u r v e y . BUREAU OF 2,000 400 0 200 486 5,172 36, 751 35,800 2,200 3,923 18,339 5,900 15,100 4,915 723 1,095 1,000 3,348 939 33 102 4,000 1,171 3,450 1,115 762 121 2,067 1,648 3,624 3,952 150 300 MINES C u r r e n t authorizations: C o n s e r v a t i o n a n d d e v e l o p m e n t of m i n e r a l resources H e a l t h a n d safety _.Construction G e n e r a l a d m i n i s t r a t i v e expenses D r a i n a g e of a n t h r a c i t e m i n e s _>_ Public enterprise funds: D e v e l o p m e n t a n d o p e r a t i o n of h e l i u m properties Intragovernmental funds: Advances and reimbursements T o t a l , B u r e a u of M i n e s NATIONAL PARK H o 8,171 2,060 413 1,652 63 8,492 4,171 3,559 1,069 795 128 6,067 5,045 5,559 7,267 2,164 5,601 91 146 168 439 185 300 16,859 21,560 15,142 20,386 7,243 17,519 25,334 21,015 10,070 3,492 1,749 1,862 14,011 14,632 12,000 12,400 13,375 10,450 6,500 1,125 1,350 7,500 8,500 1,634 406 5,785 44 8,500 4,599 J ... 1,244 723 o o > in SERVICE C u r r e n t authorizations : See footnotes a t e n d of table. 5,415 I 956 1,118 9,671 1,110 1,281 12,900 1,881 2,062 2,411 205 M a n a g e m e n t and protection M a i n t e n a n c e a n d r e h a b i l i t a t i o n of physical facilities Construction _ D E P A R T M E N T OF THE INTERIOR—Continued to o ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITIE-Continued [Irv thousands] Balance, start of 1957 Fiscal year 1959 Balance, start of 1959 Balance, start of 1958 Estimated expenditures from— Organization unit and account title Unobligated Total Unobligated Total Unobligated New obligational author- New obli- Balances ity gational of prior authorauthority ity Total Balance, start of 1960 Unobligated W W Total O NATIONAL PARK SERVICE Continued w i-H Current authorizations—Continued Construction (liquidation of contract authorization).. . Permanent contract authorization ._ General administrative expenses.. Permanent authorizations (indefinite special accounts). Educational expenses, children of employees, Yellowstone National Park_. Operation, management, maintenance, and demolition of federally acquired properties. Independence National Historical Park _ _ Payment for tax losses on land acquired for Grand Teton National Park Purchase of Great Onyx and Crystal Cave properties, Mammoth Cave National Park . Intragovernmental funds: Advances and reimbursements .. ..... ....... . Total, National Park Service $28,667 $8,769 37,852 87 $35, 257 7 9 $14,740 40,053 70 $34,022 9 4 $50, 631 130 } $31,578 J $1,258 72 a J. . 1 '" 3 $12,386 130 $1,330 7 4 29 $4 H 27 15 26 28 28 28 92 92 139 29,020 34 40 129 66 93 15 33 26 26 28 28 28 28 29 29 42 42 1 1 11 3? 34,185 58,645 42,003 70,363 67 67 10 30 28 2 37,628 68,517 2 40,479 31,623 41,682 H FISH AND W I L D L I F E SERVICE BUREAU OF SPORT FISHERIES AND WILDLIFE Current authorizations: Management and investigations of resources Construction , General administrati ve expense . Miscellaneous: Upper Mississippi River Wildlife Refuge.,,,.. Permanent authorizations: Expenses for sales, etc., in refuges. Migratory Bird Conservation Act (indefinite special account) Federal aid in fish restoration and management (receipt limitation, general account) (indefinite special account) Federal aid in wildlife restoration (indefinite special account).. Management of national wildlife refuges (indefinite special account) Migratory bird conservation account (receipt limitation) (indefinite) __. Payments to counties from receipts under Migratory Bird Conservation Act (indefinite special account) Intragovernmental funds: Advances and reimbursements _ Total, Bureau of Sport Fisheries and Wildlife 2,794 1,236 3, 272 1 3,024 1,839 5,370 1 11 9,336 28,804 2,747 10,473 8,293 21,635 1,584 5, 716 9,119 24,962 1,026 4,309 37 440 243 506 284 3,441 4,700 4,091 5,074 2,736 4,374 11,963 1, 458 7M 10,388 1,000 651 1,812 I 2,500 63 , 10 5,000 16,055 750 750 3, 250 13,250 ] 1,800 1,450 350 4,500 3,800 1,300 | 600 600 28 16,706 35,087 14,468 44,229 11,385 18 904 642 957 300 1,091 357 18 6,321 500 175 5,448 500 157 547 915 2,182 1,025 278 4,178 4,650 ,150 42,159 BUREAU O'F COMMERCIAL FISHERIES Current authorizations: Management and investigations of resources_._ ._ Construction _ General administrative expenses — Administration of Pribilof Islands (receipt limitation, annual indefinite) Permanent authorizations: Promote and develop fishery products and research pertaining to American fisheries (indefinite).Public enterprise funds: Fisheries loan fund Intragovernmental funds: Advances and reimbursements...... Total, Bureau of Commercial Fisheries. See footnotes at end of table 167 2,677 3,777 1,212 4,127 6,728 8,624 845 i 300 | 18 450 ! 255 i 356 1 2,847 4,273 I 9,584 | 15,354 1,626 1,915 I 13,828 I 11,280 !,693 | DEPARTMENT OF THE INTERIOR—Continued bo o ANALYSIS OF UNEXPENDED BALANCES—Continued 00 BY ORGANIZATION UNIT A N D ACCOUNT T I T I E - C o n t i n u e d [In thousands] Balance, start of 1957 Balance, start of 1958 Fiscal year 1959 Balance, start of 1959 Estimated expenditures from— Organization unit and account title Unobligated Total Unobligated Total Unobligated Total New obligational author- New obli- Balances ity gational of prior authorauthority ity Balance, start of 1960 Unobligated Total 8 td H FISH AND W I L D L I F E SERVICE—Continued O OFFICE OF THE COMMISSIONER OF FISH AND WILDLIFE Current authorizations: Salaries and expenses ______ $29 _____ $7 $308 $300 $7 $8 o MISCELLANEOUS ACCOUNTS Current authorizations: Management of resources _ _ __._ ._ Investigations of resources ._ __ _ _ __ __ __ Construction _ _ __ _ General administrative expenses Total, Fish and Wildlife Service OFFICE OF T E R R I T O R I E S Current authorizations: Administration of Territories Trust Territory of the Pacific Islands _ _ Alaska public works Care and custody of Alaska insane, Governor of Alaska «. Virgin Islands public works.... _ _. _. Permanent authorizations: Internal revenue collections for Virgin Islands (indefinite E $17 1,137 $812 733 1,814 44 20,707 42,763 o _.* W $24,052 59,612 4,840 154 8 11,935 3,174 363 42-1 366 47 6 9,151 71 371 $12,911 57,367 56,295 31,034 25,240 1,604 148 6 7.688 2,100 4,715 4,000 2,050 4,709 1,700 65 6 5,000 278 346 68 3,000 3,000 $4,800 56,883 133 6 4,988 (7) Public enterprise funds: Alaska Railroad revolving fund _ Loans to private trading enterprises, Trust Territory of the Pacific Islands Virgin Islands Corporation: Revolving fund Operating fund Total, Office of Territories. 14,005 17,140 10,032 14,050 151 151 241 241 1,456 1,338 55 1,609 463 28 20,815 31,205 15, 422 24,428 7,442 1,789 10, 717 2,515 3,923 269 -33 262 463 361 11. 382 130 167 13, 945 11, 589 7,788 2,500 2,375 125 | 8,202 8 262 1,906 183 474 6,091 14, 248 O F F I C E OF T H E SECRETARY Current authorizations: Salaries and expenses Intragovernmental funds: Working capital fund Advances and reimbursements.. 236 262 1 311 9 232 3 139 20 235 281 250 160,698 351,185 103, 098 224 18 -1 236 251 226 17 251 479 29,354 254,931 w H Total, Office of the Secretary.. Total, Department of the Interior.. 164, 293 311, 585 2,500 346,857 583,154 433, 436 O U RECAPITULATION O Enacted or recommended in this document: Appropriations _ Contract authorization Revolving and management funds: Public enterprise funds Intragovernmental funds. Proposed for later transmission: Appropriations Total, Department of the Interior. 39, 749 $226,386 52,458 $77,026 48,413 $250,110 55,134 32,143 34, 786 473 43,995 1,946 >$583,154 28,685 420 21,891 435 $433,436 164,293 311,585 160,698 351,185 103,098 $228,062 30, 955 1,112 17,333 1126,913 911 401 1,188 i Excludes unobligated balance rescinded in 1959 of $3,622 thousand. a Excludes capital transfer in 1959 of $1,300 thousand. s Excludes unobligated balance rescinded in 1959 of $6,667 thousand. < Excludes unobligated balance no longer available in 1959 of $4 thousand. » Excludes unobligated balance no longer available In 1959 of $5 thousand. • Excludes unobligated balance no longer available in 1959 of $500 thousand. f $11, 620 '$203,217 io 23,869 $33, 628 $247, 866 47,144 65, 736 1,167 433,436 229,229 29,354 ' Excludes unobligated balance no longer available in 1959 of $278 thousand. * Excludes capital transfer in 1959 of $40 thousand. • Excludes unobligated balance no longer available in 1959 of $786 thousand. » Excludes unobligated balance rescinded in 1959 of $10,289 thousand. » Excludes capital transfer In 1959 of $1,340 thousand. 254,931 fcO o D E P A R T M E N T OF J U S T I C E ANALYSIS OF UNEXPENDED BALANCES BY ORGANIZATION UNIT AND ACCOUNT TITLE [In t h o u s a n d s ] Fiscal year 1959 Balance, s t a r t of 1957 Balance, s t a r t of 1958 Balance, s t a r t of 1959 Balance, start of 1960 E s t i m a t e d expenditures from— O r g a n i z a t i o n u n i t a n d a c c o u n t title Unobli- Total Unobligated Total Unobligated Total N e w obligational a u t h o r - N e w obli- Balances gational of prior ity authorauthority ity Unobli- Total LEGAL ACTIVITIES AND GENERAL ADMINISTRATION Current authorizations: Salaries a n d expenses, general a d m i n i s t r a t i o n Salaries a n d expenses, general legal activities Salaries a n d expenses, A n t i t r u s t D i v i s i o n Salaries a n d expenses, U n i t e d S t a t e s a t t o r n e y s a n d m a r s h a l s . Fees a n d expenses of witnesses Salaries a n d expenses, claims of persons of J a p a n e s e ancestrySpecial t e m p o r a r y a t t o r n e y s a n d a s s i s t a n t s P r o p o s e d for later t r a n s m i s s i o n ( u n d e r existing legislation): Fees a n d expenses of witnesses T o t a l , legal activities a n d general a d m i n i s t r a t i o n . F E D E R A L BUREAU OF C u r r e n t authorizations: Salaries a n d expenses $170 877 283 739 36 19 33 $200 1,155 225 821 60 10 15 $286 1,377 236 1,161 43 24 $3,200 11,350 3, 800 20,430 1,800 210 $2,918 10,033 3,572 19,409 1, 753 187 $281 1,222 227 972 41 24 8 3,160 2,157 INVESTIGATION i,8()2 4,437 4,888 102, 500 4, 862 $287 1,472 237 1, 210 49 23 I M M I G R A T I O N AND NATURALIZATION SERVICE Current authorizations: 3,317 2,671 3,979 49,600 45,510 3, 937 33,000 1,500 2,800 30,876 798 2,423 2,065 1,302 370 $224 2,128 702 377 -2,238 10,004 » 4,045 4,132 F E D E R A L PRISON SYSTEM Current authorizations: Salaries and expenses, Bureau of Prisons Buildings and facilities __ Support of United States prisoners __ Intragovernmental funds: Federal Prison Industries, Incorporated: Prison industries fund.-. Total, Federal Prison System Total, Department of Justice - __ $245 2,018 927 428 $896 2,034 1,502 368 $425 2,069 1,302 370 9,734 3,549 11,168 4,401 10,658 4,007 9,979 6,922 12,064 8,305 11,083 7,748 37,300 34,097 1,499 10, 228 7,252 9,979 18,198 12,064 17,899 11,083 19, 775 230,190 214, 739 13,098 10,228 19,928 $245 9, 734 $14,649 3,549 $896 11,168 $13,498 4,401 $425 10,658 $15,743 |$230,190 4,007 $214,739 $13,073 } $224 1 10,004 $15,883 i 4,045 10,228 19,928 RECAPITULATION Enacted or recommended in this document: Appropriations _ Revolving and management funds: Intragovernmental funds. Proposed for later transmission: Appropriations. _ __ . . Total, Department of Justice 1 25 9,979 18,198 12,064 Excludes capital transfer (payment of dividend to Treasury) In 1959 of $2,200 thousand. 17,899 11,083 19, 775 25 230,190 214,739 13,098 DEPARTMENT OF LABOR to to ANALYSIS OF UNEXPENDED BALANCES BY ORGANIZATION UNIT AND ACCOUNT TITLE [In thousands] Balance, start of 1957 Balance, start of 1958 Fiscal year 1959 Balance, start of 1959 Estimated expenditures from— Organization unit and account title Unobligated Total Unobligated Total Unobligated Total New obligational author- New obli- Balances ity gational of prior author- authority ity Balance, start of 1960 Unobli- Total ft w O OFFICE OF T H E S E C R E T A R Y Current authorizations: Salaries and expenses Intragovem mental funds r Working capital fund Advances and reimbursementsTotal, Office of the Secretary E i—* $51 $52 $48 87 69 $1,556 $1,503 $48 -73 $6 169 $3 220 139 118 92 -~2 1,656 $53 $71 142 71 1,503 266 928 76 OFFICE OF T H E SOLICITOR Current authorizations: Salaries and expenses 127 2,121 74 1,004 BUREAU OF LABOR STANDARDS Current authorizations: Salaries and expenses. BUREAU OF V E T E R A N S ' R E E M P L O Y M E N T RIGHTS Current authorizations: Salaries and expenses 19 20 ' 542 I 522 J 20 20 o BUREAU OF A P P R E N T I C E S H I P AND TRAINING Current authorizations: Salaries and expenses ......_ ._ 200 193 250 3,900 3,545 250 275 201 11 126 126 11 29,445 53,229 3,414 101 2,108 283 2,913 99 3,966 1,225 310 140 329,300 19,000 27,800 1,339 314,554 18,025 27,490 1,253 3,966 150 310 140 355 BUREAU OF E M P L O Y M E N T SECURITY Current authorizations: Salaries and expenses.. _ Grants to States for unemployment compensation and employment service administration Unemployment compensation for veterans Unemployment compensation for Federal employees Salaries and expenses, Mexican farm labor program Public enterprise funds: Farm labor supply revolving fund Intragovernmental funds: Advances and reimbursements _ Total, Bureau of Employment Security ... 3,217 620 1,084 2,593 371 911 2,964 6,515 $303 835 303 6,487 14,746 2,050 310 86 -880 1,317 1,715 3,697 1,317 18,907 2 o 3,837 87,550 377, 565 361,448 BUREAU OF E M P L O Y E E S ' COMPENSATION Current authorizations: Salaries and expenses w H o I—I - 141 137 193 2,811 67,000 2,616 57,000 193 195 141 137 193 59,811 59,616 193 195 381 460 500 7,572 7,068 480 524 14 66 42 40 14 447 502 540 _ Employees' compensation fund (indefinite) Total, Bureau of Employees' Compensation.. o w > w BUREAU OF LABOR STATISTICS Current authorizations: Salaries and expenses _ Intragovernmental funds: Advances and reimbursements Total, Bureau of Labor Statistics 40 7,572 7,068 520 524 WOMEN'S BUREAU fcO Current authorizations: Salaries and expenses. 32 20 25 462 436 25 26 CO to DEPARTMENT OF LABOR—Continued ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE—Continued [In thousands] Balance, start of 1957 Balance, start of 1958 Balance, start of 1959 Organization unit and account title Unobligated Total Unobligated Total Unobligated Total Fiscal year 1959 Estimated expenditures from— 1 Balance, start of 1960 New obligational author- New obli- Balances ity gational of prior authorauthority ity Unobligated Total H O M WAGE A N D HOUR DIVISION Current authorizations: Salaries and expenses O _ _ __ Total, Department of Labor $600 $480 $3,857 89,397 $2,967 8,165 $3,217 $88,076 $2,593 $7,125 $303 $497 $10,500 $9, 970 8,399 465,033 447,025 5,376 [$465,033 $447,025 $5,376 465,033 447,025 5,376 $530 $497 $1,388 21,031 RECAPITULATION Enacted or recommended in this document: Appropriations Revolving and management funds: Public enterprise funds Intragovernmental funds Total, Department of Labor . _ . _. . ... $19,103 $7,380 620 20 1,084 237 371 3 911 129 $303 835 178 3,857 89,397 2,967 8,165 303 8,399 i $1,388 1,715 21? 1,388 21,031 I—I o POST OFFICE DEPARTMENT ANALYSIS OF UNEXPENDED BALANCES BY ACCOUNT STTLE [In thousands] Fiscal year 1959 Balance, s t a r t of 1957 Balance, s t a r t of 1958 E s t i m a t e d expenditures from— A c c o u n t title Unobligated Total Balance, s t a r t of 1960 Balance, s t a r t of 1959 Unobligated Total Unobligated Total N e w obligational a u t h o r - N e w obli- Balances gational of prior ity authorauthority ity Unobligated Total 0 w O Public enterprise funds: Pcstalfund P r o p o s e d for later t r a n s m i s s i o n : Appropriations _ ___ $22,190 $213,769 $17,240 $212,735 $14,240 $219,310 $676,121 $676,121 - $ 1 6 , 9 8 0 $9,403 i$231,453 T o t a l , P o s t Office D e p a r t m e n t . . . 22,190 213, 769 17,240 212,735 14,240 219,310 -675,000 -675,000 1,121 1,121 -16,980 9,403 231,453 E n a c t e d or r e c o m m e n d e d in t h i s d o c u m e n t : Appropriations. R e v o l v i n g a n d m a n a g e m e n t f u n d s : P u b l i c enterprise f u n d s . . . Proposed for later t r a n s m i s s i o n : Appropriations _. $676,121 $22,190 22,190 $213, 769 213, 769 $17,240 17,240 Excludes balance no longer available (repayment to Treasury) in 1959 of $4,837 thousand. o m > RECAPITULATION T o t a l , P o s t Office D e p a r t m e n t 3 o ._ $212,735 212, 735 $14,240 14,240 $676,121 -$16.980 $219,310 219,310 -675,000 -675,000 1,121 1,121 -16,980 $9,403 i $231,453 9,403 231,453 to Or DEPARTMENT OF STATE ANALYSIS OF UNEXPENDED BALANCES BY ORGANIZATION UNIT A N D ACCOUNT TITLE [In t h o u s a n d s ] Fiscal year 1959 Balance, s t a r t of 1957 Balance, s t a r t of 1958 Balance, s t a r t of 1959 Balance, start of 1960 E s t i m a t e d expendi t u r e from— Organization u n i t a n d a c c o u n t title Unobligated ADMINISTRATION OF FOREIGN Unobligated Total Unobligated Total Unobligated Total AFFAIRS Current a u t h o r i z a t i o n s : Salaries a n d expenses Representation allowances. Acquisition of b u i l d i n g s a b r o a d E m e r g e n c i e s in t h e d i p l o m a t i c a n d consular service P a y m e n t to Foreign Service r e t i r e m e n t a n d d i s a b i l i t y f u n d . A d m i n i s t r a t i v e expenses ( m u t u a l security) ,._ Extension a n d remodeling, State D e p a r t m e n t Building G o v e r n m e n t In occupied areas __-_ P e r m a n e n t authorizations: R e p l a c e m e n t of personal p r o p e r t y sold a b r o a d (indefinite special a c c o u n t ) _ __ Intragovernmental funds: Advances and reimbursements Proposed for later t r a n s m i s s i o n ( u n d e r existing legislation): Salaries a n d e x p e n s e s . -.. A d m i n i s t r a t i v e expenses ( m u t u a l security) T o t a l , a d m i n i s t r a t i o n of foreign affairs. Total N e w oWi-| gational a u t h o r - New obli-j Balances gational of prior ity authorauthority ity $4,439 $4, 780 108 12,586 464 $1,537 $1,864 119 18,972 1,323 43, 811 89 1,658 773 $750 5,782 $2, 652 100 17, 472 748 $105,000 1,000 18,560 1,000 2,025 $101,800 800 12,000 600 2,025 $200 100 11,000 325 1,127 34,787 10 1,127 18,230 4 $750 2,422 $5, 652 200 12,972 823 16,557 6 164 274 77 292 116 113 84 135 342 133 333 248 45 203 150 5,606 20,985 66,803 6, 574 57,410 150 4,577 3,450 132,393 120,885 1,127 31, 294 37,624 I N T E R N A T I O N A L ORGANIZATIONS AND CONFERENCES Current authorizations: Contributions to international organizations Missions to international organizations ..— International contingencies _— Proposed for later transmission (under existing legislation): Contributions to international organizations International contingencies _. 212 123 272 1,183 85 495 607 1,763 31 73 4,110 114 37 258 77 40,309 1,365 1,800 1,193 45,989 43,474 1,091 30 70 1,510 60 41 178 40 505 1,570 1,000 470 1,480 950 30 70 ,508 325 616 291 605 1,620 150 Total, International organizations and conferences 691 100 I 150 41,889 1,700 2,400 707 122 214 150 I N T E R N A T I O N A L COMMISSIONS Current authorizations: International Boundary and Water Commission, United States and Mexico: Salaries and expenses Operation and maintenance Construction _ Rio Grande emergency flood protection American sections, international commissions Passamaquoddy tidal power survey International fisheries commissions Restoration of salmon runs, Fraser River system, International Pacific Salmon Fisheries Commission..... Total, international commissions _ 4,775 114 01 4,921 115 3,962 114 68 1,300 50 50 I 34 174 40 I 53 75 53 53 fc 197 4,775 1.433 1,972 5,676 5,416 1,906 11,875 20,800 9,000 10,500 4,891 5,310 35 9,212 20 499 900 505 849 505 818 2,891 3,997 2.^09 2,980 1,563 1,905 3,425 14,129 3,114 15,759 EDUCATIONAL E X C H A N G E Current authorizations: International educational exchange activities Educational aid for China and Korea.._ Permanent authorizations: Educational exchange fund, payments by Finland*-World War I debt (indefinite special account) _._, Educational fund, interest payments by the Government of India (indefinite special account) Total, educational exchange 11,930 2,( 14,598 450 1.050 i 21,199 9,000 12,000 DEPARTMENT OF STATE—Continued to ANALYSIS OF UNEXPENDED BALANCES—Continued 00 BY ORGANIZATION UNIT AND ACCOUNT TITLE—Continued [In thousands] Balance, start of 1957 Balance, start of 1958 Fiscal year 1959 Balance, start of 1959 New obligational author- New obli- Balances gational of prior ity authorauthority ity Organization unit and account title Unobligated Total Unobligated Total Unobligated Balance . start of 1960 Estimated expenditures from— Total Unobligated Total W Q OTHER Current authorizations: Rama Road, Nicaragua . Cleveland Pan American Games _ Salaries and expenses, Philippine Rehabilitation Permanent authorizations: Payment to the Republic of Panama Total, other __ $438 $2,556 __ .. Total, Department of State $2,273 100 $3,317 100 8 $573 $2,717 $1,500 $1,217 5 4 1 $1,930 $1,930 o 438 2,556 2,373 3,425 573 2,722 1,930 1,930 1,504 14,360 43,587 16,883 92,525 10,648 77,895 207,187 180, 705 47,795 $14,225 135 $43,245 342 $16,750 133 $92,192 333 $10,606 42 $77,347 [$202,610 248 $177,255 $47,495 1,218 $4, 293 56,582 $4,293 $55, 252 203 RECAPITULATION Enacted or recommended in this document: Appropriations Revolving and management funds: Intragovernmental funds. Proposed for later transmission: Appropriations - Total, Department of State 14,360 43,587 16,883 92,525 10,648 300 4,577 3,450 300 77,895 207,187 180, 705 47, 795 | 1,127 4,293 56, 582 TREASURY DEPARTMENT ANALYSIS OF UNEXPENDED BALANCES BY ORGANIZATION UNIT AND ACCOUNT TITLE [In thousands] Balance, start of 1957 Balance, start of 1958 Fiscal year 1959 Balance, start of 1959 Organization unit and account title Unobligated Unobligated Total Unobligated Total Balance, start of 1960 Estimated expenditures from— New obligational author- New obli- Balances gational of prior ity authorauthority ity Total Unobligated Total O F F I C E OF T H E SECRETARY Current authorizations: Salaries and expenses Investment in International Finance Corporation: Authorization to expend from debt receipts $35,168 Investment in International Bank for Reconstruction and Development: Authorization to expend from debt receipts 2,540,000 Permanent authorizations: Expenses of administration of settlement of War Claims Act of 1928 (indefinite special account)... 2 Federal control of transportation systems (indefinite special account) 61 Public enterprise funds: Liquidation of corporate assets: Reconstruction 17,886 Finance Corporation liquidation fund . Civil defense loans: Civil defense program fund: Cash 245,356 Authorization to expend from debt receipts 1 Excludes capital transfer in 1959 of $15,274 thousand. $121 $129 $150 $3,068 $2,924 $147 $147 35,168 2,540,000 $2,540,000 2,540,000 $2,540,000 $2,540,000 2,540,000 3 4 4 2,540,000 3 3 4 3 4 61 56 56 50 50 6 44 44 26, 547 5,634 10, 550 420 4,619 -14,636 330 13,981 123 248,070 1 246,290 62 248,935 246,548 1 246,844 51 249,233 17 1 51 249,090 J 14 -143 J TREASURY DEPARTMENT—Continued to ANALYSIS OF UNEXPENDED BALANCES—Continued bO o BY ORGANIZATION UNIT AND ACCOUNT TITLE—Continued [In thousands] ! Balance, s t a r t of 1957 Balance, s t a r t of 1958 1 O r g a n i z a t i o n u n i t a n d a c c o u n t title Unobligated OFFICE OF T H E Total Unobligated Fiscal year 1959 Balance, s t a r t of 1959 Total Unobligated Total Balance, start of 1960 E s t i m a t e d expenditures from— N e w obligational N e w obliauthority gational authority Balances of prior authority Unobligated Total O SECRETARY—Continued Intragovernmental f u n d s : A d v a n c e s and reimbursements, Office of t h e Secretary o $3 $2,850,093 $2, 791,983 2, 799, 739 $2, 787, 021 $2, 793,964 $3,085 $2,938 223 2,635 28 3,110 17,340 2,880 14,649 6,633 25,150 5,000 2 6,633 25,150 5,000 2 - $ 1 4 , 6 2 3 $2, 787, 222 $2, 793, 4H0 B U R E A U OF A C C O U N T S Current authorizations: Salaries and expenses Salaries and expenses, D i v i s i o n of Disbursements Claims judgments, and private relief acts Permanent authorizations: Interest on u n i n v e s t e d funds (indefinite) Public enterprise f u n d s : F u n d for p a y m e n t of Government losses in shipm e n t (current appropriation) 217 2,923 4,006 237 2,790 440 223 2,635 28 229 2,692 140 158 94 113 44 63 100 6 44 94 113 140 3,625 94 7,259 1 44 2,949 57,335 M,320 2,930 94 3,034 o BUREAU OF THE PUBLIC DEBT Current authorizations: Administering the public debt 4,734 4,194 4,052 44,600 40,450 4,100 4,102 411 419 571 17,950 17,326 569 626 O F F I C E OF T H E T R E A S U R E R Current authorizations: Salaries and expenses Public enterprise funds: Check forgery insurance fund _ Total, Office of the Treasurer -2 44 27 17,326 567 44 653 48,000 45, 558 3,127 300 4,286 4,971 48,000 45, 558 3,127 300 4,286 16,240 325,500 309,700 14, 790 17,250 61,750 61, 750 20 20 24 24 45 28 44 25 24 435 45 447 44 596 17,950 300 2,392 300 6,059 300 4,971 300 BUREAU OF CUSTOMS Current authorizations: Salaries and expenses _ Intragovernmental funds: Advances and reimbursements.. _ 25 Total, Bureau of Customs 300 2,392 300 6,084 I N T E R N A L R E V E N U E SERVICE Current authorizations: Salaries and expenses _ Permanent authorizations: Refunding internal revenue collections, interest (indefinite) Coconut oil tax, collections for American Samoa (indefinite special account) Internal revenue collections for Puerto Rico (indefinite special account) .. Total, Internal Revenue Service. _ 14, 930 15,115 1,609 1,821 1,900 20,000 18,100 1,900 1,900 16,539 16,936 18,140 407,270 389, 570 J6,690 19,105 TREASURY DEPARTMENT—Continued to fcO ANALYSIS OF UNEXPENDED BALANCES—Continued BY ORGANIZATION UNIT AND ACCOUNT TITLE—Continued [In thousands] Fiscal year 1959 Balance, start of 1959 Balance, start of 1958 Balance, start of 1957 Organization unit and account title Unobligated Total Unobligated Total Unobligated Balance, start of 1960 Estimated expenditures from— Total New obligational author- New obli- Balances gational ity of prior authorauthority ity Unobligated Total to o BUREAU OF NARCOTICS Current authorizations: $225 $224 $159 $3, 780 $3,545 $235 U N I T E D STATES S E C R E T SERVICE $225 . , 149 33 6 171 37 12 162 54 14 3,461 865 293 3,308 831 275 163 163 149 33 12 153 34 12 Permanent authorizations: Contribution for annuity benefits, White House Total, United States Secret Service 230 220 188 4,782 4,577 194 199 835 457 366 4,300 3,918 366 382 BUREAU OF T H E M I N T 5 o Current authorizations: Current authorizations: Salaries and expenses -- -Permanent authorizations: Minor coinage profits, etc (indefinite o special 130 130 322 322 200 200 350 , 150 200 | 200 200 % Silver profit fund (indefinite special account) Total, Bureau of the Mint 155 155 282 282 200 200 475 275 200 200 200 285 1,120 604 1,061 400 766 5,125 4,343 766 400 782 -353 5,497 16 4,461 -1,592 1,633 473 -2,399 1,160 BUREAU OF E N G R A V I N G AND P R I N T I N G Intragovernmental funds: Bureau of Engraving and Printing fund COAST GUARD Current authorizations: Operating expenses Acquisition, construction, and improvements. Retired pay _ Reserve training _ Intragovernmental funds: Coast Guard supply fund Coast Guard yard fund Advances and reimbursements 10,899 22,072 14,602 89 615 14,973 24,053 23,993 102 1,318 176 24,053 18,889 102 1,318 171,700 16,000 27,800 11, 500 147,647 -8,153 27,698 10,182 24,053 9,825 102 1,318 13 24,053 33,217 102 1,318 W Total, Coast Guard 1,583 791 2,395 2,150 133 1,135 64 2,507 1,741 779 697 2,402 2,284 13,273 42,056 16,172 53,714 1,652 49,048 227,000 177,374 7,800,000 7,800,000 8,618,926 8,540,001 216 721 558 3 2,186 1,563 36,235 574 62,439 50,694 2,786,235 2,889,490 f $761 2,786,844 $91,176 2,789,233 468 -1,838 i 4,172 4,909 2,786,235 2,889,490 s o I N T E R E S T ON T H E P U B L I C D E B T Interest on the public debt _ _ _ Total, Treasury Department 2,852,142 2,926,880 2,809,214 2,894,339 2,787,869 2, 876,532 $11, 547 $66,615 2,820, 524 2,823,238 $15,936 2,786,290 $929 $85,914 2, 788, 935 2,786, 548 $76,365 2, 789,090 a RECAPITULATION Enacted or recommended in this document: Appropriations __ Authorizations to expend from debt receipts Revolving and management funds: Public enterprise funds Intragovernmental funds Total, Treasury Department >$8,618,926 $8,540,001 __ _ 18,050 2,021 26,852 10,175 5,773 1,215 10,753 8,737 508 -116 4,758 6,319 2,852,142 2,926,880 2,809,214 2,894,339 2,787,869 2,876,532 i Excludes capital transfer in 1959 of $15,274 thousand. $50,694 < I 8,618,926 8,540,001 50,694 to CO' DISTRICT OF fcs2 COLUMBIA to ANALYSIS OF UNEXPENDED BALANCES tin thousands] Balance, start of 1957 Balance, start of 1958 Balance, start of 1959 Account title Unobligated Current authorizations: Federal payment to District of Columbia Loans to District of Columbia for capital outlay, highway fund Loans to District of Columbia for capital outlay, water fundLoans to District of Columbia for capital outlay, sanitary sewage works fund Total, District of Columbia..« Total Unobligated Total Unobligated Total Fiscal year 1959 Estimated expenditures from— New obligational author- New obli- Balances gational of prior ity author- authority ity $27,229 Balance, start of 1960 Unobligated Total w $27,229 $9,357 18,780 $9,357 18, 780 $14,757 20,180 $14, 757 20,180 $21, 238 17, 577 $21, 238 17, 577 2,750 2,750 2,750 2,750 1,000 1,000 30,887 30, 887 37,687 37, 687 39,815 39, 815 35,829 27,229 $30,887 $30,887 $37,687 $37,687 $39,815 $39,815 $35,829 $27,229 $24, 738 13, 297 $24,738 13,297 10,380 38,035 38,035 $10,380 $38,035 $38,035 $2,000 7,380 5,500 3,100 1,000 o RECAPITULATION Enacted or recommended in this document: Appropriations o SUMMARY OF BALANCES AVAILABLE AT START OF YEAR Based on existing and proposed legislation [In millions] 1957 actual Description BALANCES OF AUTHORIZATIONS ENACTED IN THIS DOCUMENT Appropriations: Legislative branch _ _ The judiciary Executive Office of the President-Funds appropriated to the President: Mutual security __ _ Other Independent offices: Atomic Energy Commission Veterans Administration _ Other General Services Administration Housing and Home Finance Agency _ Department of Agriculture Department of Commerce Department of Defense—Military Functions Department of Defense—Civil Functions ^^A Department of the Interior. _. Department of Justice __ Department of Labor Department of State Treasury Department _. District of Columbia Total appropriations. 'Less than one-half million dollars. 1.HT «•!*„•.« Obligated 1958 estimate Unobligated Obligated 1959 estimate Unobligated Obligated 1960 estimate Unobli- Obligated Unobligated OR RECOMMENDED 2 1 .__ _. _ _ __- $38 3 1 (*) 3,380 10 338 24 3,109 13 975 90 103 408 1 165 173 25,154 147 376 130 83 412 2 254 183 12, 341 104 977 90 153 257 2 112 235 24,137 146 31, 415 0) 14, 552 (0 $22 3 1 $37 2 1 764 17 2,531 14 175 147 223 2 330 248 10,862 117 1,271 116 152 208 3 207 398 23, 626 165 317 56 7,797 109 29 22 65 109 123 149 7*1 102 173 13 5 76 70 77 1 214 15 7 67 75 34 30, 232 13,505 29, 840 8,908 AKA 131 14 85 29 55 $18 (,) 2 Cd H o 14 1,104 131 292 216 4 142 488 23,294 233 660 191 16 19 51 90 27,833 • B (1) £ •- o $67 21 i £j d 303 83 6,130 28 ;> g 0) 6,734 SUMMARY OF BALANCES AVAILABLE AT START OF YEAR—Continued to Based on existing and proposed legislation—Continued fcO [In millions] 1957 actual Description Obligated 1958 estimate Unobligated Obligated 1959 estimate Unobligated Obligated 1960 estimate Unobligated Obligated Unobli BALANCES OF AUTHORIZATIONS ENACTED OR RECOMMENDED IN THIS DOCUMENT—Continued Authorizations to expend from debt receipts: Funds appropriated to the President: Mutual security Other Independent offices: Veterans Administration Other... ___ Housing and Home Finance Agency Department of Agriculture _ Treasury Department Total authorizations to expend from debt receiptsContract authorizations: Legislative branch General Services Administration Housing and Home Finance Agency. Department of Agriculture Department of Commerce Department of Defense—Military Functions Department of Health, Education, and WelfareDepartment of the Interior Total contract authorizations. g trJ , _ - 694 263 335 $105 471 $109 265 171 $129 104 $70 59 27 823 1,209 1,021 3 153 7,603 3,610 -108 2,821 49 1,556 1,788 1,587 3 203 6,588 4,182 934 2,786 67 1,666 2,536 1,438 3 41 5,587 4,816 2,457 2,787 19 1,788 2,677 1,348 2 54 5,365 4,179 1,853 2,787 4,467 14, 411 5,412 15,269 6,084 15,949 6,067 14,367 498 548 1,190 1,304 129 3 497 24 2,005 39 1 40 2,738 89 111 105 639 37 150 894 306 789 92 91 434 1,017 51 671 638 o a g Revolving and management funds: Legislative branch Funds appropriated to the President: Mutual security Other. Independent offices: Atomic Energy Commission _ Veterans Administration Other General Services Administration Housing and Home Finance Agency Department of Agriculture Department of Commerce Department of Defense—Military Functions Department of Defense—Civil Functions Department of Health, Education, and WelfareDepartment of the Interior Department of Justice Department of Labor ___ _ Post Office Department _ Department of State Treasury Department Total revolving and management funds.. Total balances of authorizations enacted or recommended in this document _ BALANCES OF AUTHORIZATIONS PROPOSED FOR LATER TRANSMISSION Appropriations: The judiciary _ _ _ Funds appropriated to the President: Mutual security _ _ Independent offices: Atomic Energy Commission __Other General Services Administration _ Department of Agriculture _ i Less than one-half million dollars. 12 (») 11 0) 26 96 11 107 29 -6 0) 4 -6 1 192 16 6C0 45 27 62 42 2,978 37 1 29 10 1 22 (0 183 | 35 100 184 I 35 37 161 -4 118 46 3 29 420 57 50 72 42| 67 -8 133 I 34 -292 43 2 2,221 42 1 22 11 0) C1) 33 208 -1 138 43 -462 42 1 11 -7 1 195 (9 13 18 427 52 49 64 18 2,374 46 1 35 11 10 -7 1 205 l () 17 0) (0 11 2] 28 0) 14 0) 0) -232 i 49 I 2I 10 -6 ] 1 222 I (9 1 37 450 62 52 75 31 ,886 37 1 18 10 1 o V) -1 221 3,902 252 3,133 553 3,078 543 I 37,408 35,603 36,048 32,801 36,910 28, 952 35,114 I 1,661 2,681 24,420 o 226 100 I 52 0) 0) to bO to to SUMMARY OF BALANCES AVAILABLE AT START OF YEAR—Continued Based on existing and proposed legislation—Continued 00 [In millions] 1957 actual Description Obligated Unobligated 1958 estimate Obligated Unobligated 1959 estimate Obligated 1960 estimate Unobligated Obligated Unobligated BALANCES OF AUTHORIZATIONS PROPOSED FOR LATER TRANSMISSION—Continued Appropriations—Continued (0 Department of Defense—Military Functions $769 5 53 1 $326 $10 1,147 $1 1,569 119 0) 0) 200 Total appropriations. . - .» ..-_- - ---- Authorizations to expend from debt receipts: Independent offices Total authorizations to expend from debt receipts Contract authorizations: Housing and Home Finance Agency Revolving and management funds: Department of Agriculture 1,042 - .- 330 3,490 1,796 2,000 246 90 1,866 200 2,000 336 2,066 200 -28 Total balances of authorizations proposed for later transmission Total balances available at start of year o 1 400 (») $37,408 $35,603 $36,048 $32, 801 -198 1,014 2,330 3,628 4,063 37, 924 31,282 38,742 28,482 o w RECAPITULATION Appropriations -. Authorizations to expend from debt receipts.. Contract authorizations Revolving and management funds $31,415 4,467 1,304 221 $14,552 | 14,411 2, 738 3,902 $30,232 5,412 150 252 $13,505 15,269 894 3,133 $30,882 6,084 434 525 $9,238 17,949 1,017 3,078 $31,323 6,403 671 345 $8, 530 16,433 838 2,681 Total balances available at start of year. 37,408 35,603 36,048 32,801 37,924 31,282 38,742 28,482 1 Less than one-half million dollars. Source: Budget document for fiscal year 1959. W O 2 3 o w 8 to CO 230 DEBT CEILING INCREASE Senator J E N N E R . Mr. Chairman, since this is a sort of a free-for-all, I would like to get my two bits in. I have just come from the Post Office Committee, and I know that in these considerations there has been some anticipation of increase of postal rates and also increase of postal employees' pay. And I personally think from the tenor of that committee, that both are going to be done. But the amount, I think, is probably another question. Whether you have a 5-cent first-class stamp or whether you have a 4-cent stamp, that is going to make a great deal of difference in the overall picture. But when we stop to consider what Senator Anderson of New Mexico has said, plus all the other statements, we realize that the second largest item of our budget is interest on our debt, and we are here considering increasing this debt $5 billion. You might also stop to consider it is awful to be broke and it is awful to be dead, but it is a hell of a note to be both dead and broke. And when you combine them with being both dead and broke, you are in an awful shape. And that is where we are heading. We could be both dead and broke. Senator B E N N E T T . Mr. Chairman, may I try to enlighten the atmosphere? Since the hearings began yesterday my mind has reverted to an old story, the story of the situation in which the barkeeper was at one end of the bar and the proprietor was at the other, and Bill Jones came in for a drink of beer, and the barkeeper yelled to the proprietor, "Is Jones good for a glass of beer?" and the proprietor says, "Has he had i t ? " The barkeeper says "Yes." The proprietor then replies, "Well, then, he is good for it." Well, we are working in the large sense on the glass of beer that has alread}^ been had. And it is too late, in a sense, for the proprietor to say, "No, Jones cannot have credit on the beer he has already drunk." Senator J E N N E R . I t is not too late to take a reappraisal of these things, the duplication and waste and the extravagance. When we are trying to support and take care of the whole world and we cannot really take care of ourselves, it is time we took a look at these things. Senator ANDERSON. We are just talking about contracts in the missiles program that are far more expensive than any other things that we have developed. We have got three different types of antitank missiles. I t is just possible we might not be using tanks at all. j Senator BENNETT. The control of that is behond the Secretary of the Treasury in his responsiblity to manage the debt. Senator ANDERSON. Yes, but if the debt limit is kept on, there may be some control on the military that we do not have now. I t is going to be pretty hard to go against any of these military expenditures. Senator M A R T I N . Mr. Chairman, may I observe that it might ease the feelings of the distinguished Senator from New Mexico: I t has always been that way. By the time we get the equipment of offense or defense completed, it is obsolete. I t has always been that way in military affairs. Military things are the most wasteful matters that have ever been considered in worldwide affairs. Senator MALONE. Mr. Chairman. The CHAIRMAN. Senator Malone. Senator MALONE. I waited too long yesterday to question Mr. Anderson, because I find that he had two speaking engagements in Missouri, and he came to my office after it was over and he asked, DEBT CEILING INCREASE 231 "Would you let me off?" and what could I do? I did have something to say to Mr. Anderson. So I am going to ask permission, Mr. Chairman, after we are finished with Mr. Brundage today, to sum up some of the things, that if I had had the opportunity, I would have asked Mr. Anderson, and maybe some of the answers from his predecessors might fit in. In the meantime, to join this melee, I was going to ask if I could question Mr. Brundage just a minute. The CHAIRMAN. Yes, sir. Senator MALONE. Mr. Brundage, I am sorry I do not know your background. What is it? Mr. BRUNDAGE. I was in public accounting all my life, Senator. Senator M A L O N E . Well, I have read your statement, and I will not duplicate what the Senator from New Mexico has said. He is absolutely correct. There are probably three or four hundred places in the United States where the shift in population has made it impossible for local people to keep up with schools and expenses, therefore you have about as much chance of changing that as you have of flying to Europe without a pair of wings in about the next 10 minutes, I think. Then I might mention to you something that I read here, that ybu are going to charge for all Government property. And you assume, of course, being in the accounting business, that all of the public lands belong to all of the people, and therefore should be sold in accordance with their present value. Well, I have some news for you. One way that the Congress has tried to develop public lands is to-make them available to people who live on them and who will develop them, and that was the livestock enlargement of the Homestead Act, and the mining claims on locations. So I see in your youth and innocence you have suggested all these things be charged for. Now, I think if you had consulted some of the leaders of the administration who deny that they want a mineral leasing act—you now are suggesting that the mining claims be charged for in accordance with whatever they may find on them, which means leasing, and could only mean one thing, in accordance with the values found. Now, I can go on—I will not go too far here. There is just the Rural Electrification. You want that written off. You want the matter of the veterans' pensions—and I might review for you the action of this committee last fall. I doubt if you would read anything of the kind. I t would be tedious to you. But it was proposed by the administration, and I think will be again, that a pension to a disabled veteran be figured on his disablement—loss of an arm or an eye, or he got a little gas or something—and there are methods by which the Veterans' Administration figure those things. And that handicaps this man in getting a job. So they have a veterans' preference. He probably gets a much poorer job than he would get if he did not have this disability. So now you propose that when he does get a job and }^ou charge him the same social security to go into the Government and be repaid then in benefits, that you deduct whatever he is drawing in a pension from the social security. Now, this committee brought the bill back from the Senate floor and denied that business, because the disability is paid on account 232 DEBT CEILING INCREASE of a disability of his ability to earn a living. And his social securitypays in just like anybody else. There is absolutely no connection. Now, you can go on to other things, but I think the Chairman has picked it up. But it reminds me of what an old timer once said: "There is no one wiio can talk quite so convincingly on the subject than somebody entirely unhampered by the facts." And I hate to p u t this against your record, but in reading this thing, it just seems to me like a 10-year-old school child had written it out without any consideration whatever of what has gone before for nearly 40 years in veterans legislation, social security (for a shorter time, but well established) and there is some attempt, the attempt of this Congress, to try to equalize the expense on a small community when suddenly the Government says that something must be done in that community. Apparently you know nothing about those things except that it looks good on paper. So I hope when you come back that we get another opportunity to question you about some of the things that you have suggested here, and you can depend on it that we will; because I will not wait too late next time so that you have a speaking engagement some place. Mr. BRUNDAGE. Well, I will be glad to answer. Senator, some of your comments Senator M A L O N E . Answrer about the veterans. What do you think about that? Mr. BRUNDAGE. Did you read the report of the Bradley Commission? Senator M A L O N E . I have read everything on veterans for 40 years. I was in the First World War, and I am one of the ones that had an opportunity and did participate in building veterans' hospitals throughout the country and securing some kind of benefits for these veterans. When wTe came back from World War I in 1919, you could not get a veteran in a hospital with a shoehorn, because there wTas no place for him. Nowr you can get them in hospitals. No one denies some of these things may be abused. That is a matter of administration, another part of your own administration now that your man is in there. I t is not a matter of cutting these benefits out. I t is a matter of administration. Mr. BRUNDAGE. Well, the portion of the Bradley Commission's recommendations that related to disability of service-connected cases wras dealt with by the Congress in the legislation last year. But they did not deal with, and the President did not submit, any recommendation with respect to the non-service-connected cases, and that is what we were talking about here. Senator M A L O N E . Were you in one of these wars? I presume you were. Mr. BRUNDAGE. World War I. Senator M A L O N E . Yes. That was mine. Well, I can tell you a little story. I t may relate to non-serviceconnected cases. When a man is in the Army or in the armed services for 2 or 3 years and he caves in later, in my opinion he is entitled to eat and to have his kids go to school—not to live in luxury. In France, where I presume you were in 1919, I had a battery of field artillery, and some of the privates or the enlisted men thought these officers should not be officers. So we had a pretty smart colonel, and he suggested we play a game of football, the officers against the DEBT CEILING 233 INCREASE enlisted men. The dirt was about 6 inches deep. I t was mud when it rained. And they had a 60-minute football game, and I think I was about 1 of 3 or 4 that played the 60 minutes. Nobody scored, because nobody paid a r ^ attention to the football. Whenever it was snapped, everybody just got somebody. So they carried them off one after the other. I attended a reunion of that regiment about 6 or 7 years ago, and I understand that 19 men are drawing compensation as a result of that football game. I am not one of them, however; but I could well have been. So I think it is the nth degree of something, and it must be ignorance, that makes people believe that a man that does not have it on his service record did not get hurt in that war. And you fellows will continue to harp about that, no doubt, for the next 20 years until they are all dead, but I do not think you are going to get away with it. Aud that is something else I will question you about when you come back. Mr. BRUNDAGE. All right. The CHAIRMAN. What is the pleasure of the committee? How long will it take, Air. Brundage, to get this information? Mr. BRUNDAGE. I imagine a couple of days. The CHAIRMAN. Then, together with that, it would be interesting for you to give a memorandum as to what authority you have to reduce expenditures in the various departments, say, through more economical administration, and so forth. You have such authority, I presume? Mr. BRUNDAGE. YOU mean the Bureau of the Budget? The CHAIRMAN. Through the Bureau of the Budget. (The material referred to follows:) R O L E OF THE B U R E A U OF THE B U D G E T IN R E D U C I N G EXPENDITURES General.—In general, to control and reduce future expenditures it is necessary to control and reduce t h e obligations which precede them. If obligations are not controlled or reduced, there exists only t h e possibility of delaying—not eliminating—expenditures. If obligational authority is reduced, it m a y not result in an equivalent reduction of spending in the same fiscal year since there is often a substantial timelag between the incurring of t h e obligations and t h e making of t h e expenditures to liquidate them. Control over obligations and the resulting expenditures is exercised not only through t h e budget and appropriation process, b u t also through the legislative process. I n addition, due regard for economy and efficiency in t h e manner in which the Government is organized, and in which it conducts its affairs, has an effect on expenditures in the long run. General position of the Bureau.—By Reorganization Plan No. 1, effective J u l y 1, 1939 (5 U. S. C. 133t note), the Bureau of the Budget was transferred to t h e Executive Office of t h e President. This change was made because, in the words of the President's message transmitting the reorganization plan to the Congress, "it is necessary for the President to have direct access to these managerial agencies in order t h a t he m a y have t h e machinery to enable him to carry out his constitutional responsibility^, and in order t h a t he m a y be able to control expenditures, to increase efficiency, to eliminate overlapping and duplication of effort. * * *" Under Executive Order 8248, dated September 8, 1939, issued p u r s u a n t t o this reorganization plan, the Bureau was assigned certain functions as a coordinating staff agency for the President. Among the important functions assigned to t h e Bureau by this order are those of assisting the President by clearing and coordinating d e p a r t m e n t a l advice on proposed legislation and by making recommendations as to Presidential action on legislative enactments; conducting research in t h e development of improved plans of administrative management, and advising t h e d e p a r t m e n t s and agencies with respect to improved organization and practice; supervising and controlling the administration of the budget; and aiding the 234 DEBT CEILING INCREASE President t o bring about more efficient and economical conduct of G o v e r n m e n t service. I n carrying out t h e functions referred to in t h e preceding paragraph, t h e B u r e a u acts as a staff a r m of the President. Through t h e legislative clearance process, it assists t h e President in making his recommendations on legislation which will ultimately play a large p a r t in determining the size and character of t h e programs for which expenditures will be made. Similarly, in making organization a n d m a n a g e m e n t studies, t h e Bureau assists t h e President to reduce expenditures b y insuring t h a t t h e Government's affairs are conducted in the most efficient a n d economical manner. Functions of the Bureau with respect to appropriations.—The Bureau's functions with respect to appropriations have a bearing upon expenditures in two w a y s : First, in connection with the President's budgetary recommendations as to t h e total of expenditures in any particular fiscal year; and, second, in connection with t h e timing of expenditures in any particular fiscal year or from one fiscal year t o another. With respect to t h e first, under t h e provisions of t h e Budget a n d Accounting Act, 1921, as amended (31 U. S. C. 16), t h e Bureau has a u t h o r i t y " t o assemble, correlate, revise, reduce, or increase t h e requests for appropriations of the several d e p a r t m e n t s or establishments." T h e actions of the Bureau to reduce expenditures through the budget-preparation process are effected in it recommendations to the President and are reflected in t h e budget as approved and t r a n s m i t t e d by him to the Congress. This authority is not, in fact, as broad as it might seem a t first glance because so m a n y of our programs—such as v e t e r a n s ' pensions, interest on the public debt, and m a n y others—are not controllable through t h e budget process. With respect to t h e second, the Director of the Bureau of t h e Budget is required by law to apportion funds for use by executive agencies, and he has a limited s t a t u tory a u t h o r i t y to establish reserves (sec. 3679, Rev. Stat., as amended, 31 U. S. C. 665). F u n d s which are reserved p u r s u a n t to this a u t h o r i t y are not available for use by t h e agencies. I n addition to t h e specific s t a t u t o r y authority to establish reserves, t h e B u r e a u — in its general role as a staff a r m of the President—has been responsible for carrying out such instructions as might be issued from time to time by the President with respect to reductions in expenditures. Compliance with such instructions has resulted, of course, in some reductions in expenditures, b u t it is difficult to ascertain in any particular instance how much of a reduction is a t t r i b u t a b l e to such instructions a n d how much to other program factors. Senator M A R T I N . Mr. Chairman, I would like to make just a little explanation. I asked a question a while ago relative to locks and dams, whether it was the intention to charge tolls for their use. Mr. Chairman, that means a lot to us in Pennsylvania. But if we start a policy of that kind, and do it all over the United States, I would not object. Now, Senator Gore, you have been over it in an airplane, and you know what it means to us. If we do those things all over the United States, I would not object. M y community will object very seriously, and I will object very seriously unless it is done all over the country. Senator M A L O N E . Mr. Chairman, I might say what I just neglected to say, that apparently with the $4 billion this year we will have spent over $70 billion in Europe and Asia now since World War I I in things and doing things which you object to being done here. So apparently what you are trying to do is to carry on the principle started under the Roosevelt administration, carried through the Truman, and now through ours, to do even^thing for foreign nations, building their schools, their roads, their projects, and write it all off, but stop doing anything for the United States of America. And that is another place where we part company. I have not yet voted for any of the $70 billion, and I am not about to. I think it is the craziest thing on earth, and I believe that if the people of the United States had seen these projects and know what you are building throughout the world as I and many other members of this committee have seen DEBT CEILING INCREASE 235 them, I think the people would move on Washington. I do not think they would even wait for an election. Now, that is what you are proposing. You have that in your budget. Mr. BRUNDAGE. YOU have asked me—may I ask a question? What is a nonessential Federal expenditure? Senator M A L O N E . I do not know of any that is going on right now, if they are being expended and administered properly. The nonessential here is an essential in, we will say, Iran. One hundred million dollars means nothing to you people. You write it off tomorrow. I see France is here now to get another $300 million. They will get it without a doubt. To do what? Carry on their Socialist government. You do not ask them what they are going to do with it. What these people do, fight for leadership to get this money, so that the top people get it. They have just had a little upset in Venezuela. They would not be fighting for this ownership so much if there was not so much American money. I have been all over Venezuela. I went out on Maracaibo Lake, went up to Bolivar Mountain, where they are whittling off the iron from the top; out to the manganese deposits; I have been to every nation in the world, and I have seen these things you are doing. And I want to tell you they are an insult to human intelligence. But you want to substitute these programs all over the world for, say, keeping up our schools, where you send in this thing double and triple and make the population 10 times as much as it was before so that the local taxpayers cannot do it; you would take it away from them and put it in Guam or some other seaport, and you do not even know what they are doing with the money. You cannot know. I do know what they are doing with it, because it took me 11 years to visit all these places, everyone of them. And they were not social calls. Senator ANDERSON. Mr. Chairman, I had intended when we got down to questioning on these schools and Hill-Burton funds, and so forth, to call Mr. Brundage's attention to a story in the Washington Sunday Star of January 19: "Russia's Syrian Deal is Model of Efficiency." All these things that Russia is doing for Syria are the things that we want done in the United States for communities that are in real trouble. And I am just hopeful that our Government could do as well by our people as Russia is going to do by the Syrians. It is pretty hard to talk about stopping the Hill-Burton funds to schools and other things in areas where this sudden impact of population has produced problems that the local community cannot solve. The mayor of the local community for Grants, N. Mex., has phoned my office time after time when I was in New Mexico this summer, saying, "We cannot get it done, you fellows are so smart in Washington, come out and tell us what we can do to keep these schools open." There is no easy answer to it. They cannot build houses, because the uranium mills' proposal is to mill all this ore in 7 years. You cannot get an FHA loan and amortize it in 7 years. And they have had very difficult situations. I believe the Bureau of the Budget should take those problems in mind and talk about these reductions and look for reductions in areas where I think there are very substantial reductions possible. As I say, 21297—58 16 236 DEBT CEILING INCREASE the order to build a type of shell for which there is no gun, the gun being in mothballs and probably never to be revived, is the type of waste I think we can well do without. Senator MARTIN. Yes, there is much of that. The CHAIRMAN. Mr. Brundage, now you understand what the committee wants? We want one column of the savings that you are making through more efficient administration etc. And in this respect., you, of course, recognize your responsibility. You are asking Congress to appropriate $72.5 billion in new spending authority to be added to $70 billion remaining unspent in old appropriations. But the actual spending of that money is in the executive branch of the Government, and there lies the responsibility for efficient and economical administration through which great savings that can be made independent of any legislation on the part of Congress. We first want to know how much you have reduced this budget as compared to last year's budget by savings through efficiency and economy, which you have the power to require. And then, secondly, the savings that you recommend which require legislation. We want these savings itemized. Mr. BRUNDAGE. Could I ask your interpretation—and I am doing this in all seriousness—as to what is a nonessential Federal expenditure? The CHAIRMAN. I would say first it is an expenditure that is not incumbent upon the Federal Government. Mr. BRUNDAGE. By law? The CHAIRMAN. By law or otherwise. While we are on this subject, let's take a moment to look at the governmental structure in this country. In addition to the Federal Government, there are 48 State governments, and some 3,000 local governments. Under our system, these State and local governments have definite responsibilities. And, with very limited exceptions, such as the emergency situation mentioned by Senator Anderson, for instance, Federal overlapping is nonessential. When 1 came to the Senate, in the middle of the depression when we had all sorts of emergency agencies, there were 23 programs through which the Federal Government was paying $1.8 billion a year to States and individuals. Now there are 85 of those programs, and through them the Federal Government is spending $6.5 billion. I ask you to consider this increase against the background of the colossal Federal debt with which we are wrestling, along with other aspects of the Federal fiscal situation. When I came to the Senate the Federal debt was $16 billion. Now it will be $280 billion if this bill is passed. When I came to the Senate our Federal tax bill was $4 billion. Now you are asking Federal tax collections totaling $74.4 billion. Senator J E N N E R . Well, Mr. Chairman, are you eliminating the foreign aid and economic aid in your statement to Mr. Brundage? The CHAIRMAN. I regard foreign economic aid as an area where there are tremendous nonessential expenditures, but in view of conditions confronting us, we must make heavy military expenditures for the protection of these foreign nations as well as ourselves. We have spent, as you know, $62 billion on foreign aid, military and economic. I know^ much has been wasted in the most extravagant way. I went over to Denmark, and learned that we had given $100 DEBT CEILING INCREASE 237 million to Denmark to pay on its public debt. Now, do 3^0 u regard that as an essential expenditure? Mr. BRUNDAGE. Well, I do not know the details. The CHAIRMAN. That is a fact. We gave to Denmark $100 million to pay on its public debt, and we added it to our public debt. There is no question about it. I saw the records in Copenhagen. Now, these are some examples in response to your question. And let me say, further, to you, sir, that there is inefficiency and extravagance and duplication of effort all through the Government. I think you will agree with me. There is a great deal of it, especially in the military branch. Mr. BRUNDAGE. We have certainty been working to eliminate that. The CHAIRMAN. We want a statement of what you have done in all areas. We want your action translated into dollars and cents so we can see what you have saved. The military is infiltrated with waste. I t is naturally a wasteful operation, I understand that. And I am for a strong military defense, directed in the proper fashion. But we must put first things first, and that goes for the military. I do not think you will deny that there is great extravagance through all the branches of Government. I do not say that it can be run like a private business. I have never argued that. But I think a lot of this waste can be cut out, and it is incumbent upon administrative officials to do it. When we define nonessential Federal expenditures, we might properly include whole programs and projects, but the definition should not be limited to entire items. There may be considerations of degree. I will illustrate with a personal example. Automobile transportation is essential to me for proper attention to my duties in Washington and my responsibilities and business in Virginia. But, Chevrolet transportation is completely adequate. I drive a Chevrolet. Cadillac transportation would be nonessential. I don't own a Cadillac. A Cadillac would cost three times as much initially, and then it would cost three times as much to maintain and operate. The difference in the cost of using a Chevrolet and using a Cadillac would be a nonessential expenditure. There are a great many Chevrolet activities in the Federal Government riding around in chauffeured Cadillacs. Now, if that answers your request for my interpretation of nonessential expenditures, I would like to return for a moment to the subject of foreign aid. When the Marshall Plan was proposed, we were told that it was a 4-year operation limited to some $15 billion. We had the assurances of those in authority that it would expire in 4 years. Here it is extended for years and years. It was started in 1946, was it not? Mr. BRUNDAGE. Yes. The CHAIRMAN. I think it was. Senator ANDERSON. No; 1947. The CHAIRMAN. 1947. Now it has gone 11 }^ears, and apparently it is a permanent part of the budget of this country. Senator MALONE. Mr. Chairman, right around that while you are on it. The CHAIRMAN. I could elaborate further, but I think I made myself clear. 238 DEBT CEILING INCREASE Senator Malone. Senator MALONE. YOU are talking about Secretary Dulles sitting right there the last time $4 billion went through and said, "This must be a permanent program." I might also mention just one other thing. We have been keeping West Germany in the style to which they would like to become accustomed, and a year ago they loaned to the World Bank at 4 percent interest $100 million in gold that we had given them already. I do not suppose you know anything about that. You would have no way of knowing. That is what I mentioned earlier in the game. But somebody must know something about it in the administration. I doubt if it is the fellow that is the head of EGA. I do not think he knows anything about it. They change them every 2 years. Mr. BRUNDAGE. There is no aid going to West Germany now. Senator J E N N E R . Maybe we can get something from them. Senator M A L O N E . We gave them plenty of aid. So they loaned it back at 4-percent interest. You see, you are a little late in catching up with it. This is a year ago. But you still have $4 billion in this thing for aid, do you not? I think it is nearer $70 billion that we put out to these nations. Mr. BRUNDAGE. Nothing but military aid for Europe, I believe. Senator M A L O N E . What is the $300 million that France wants now? They just sent a good friend of mine over here. I met him when I was there in 1947—a Frenchman, and a smart one, smarter than anyone we will get in government, I will guarantee. And he will get the $300 million, I will guarantee. Why I cannot tell you. Mr. BRUNDAGE. We have nothing in the budget for it. The CHAIRMAN. Mr. Brundage, is it not true that about half of the Federal expenditures each year are paid out of balances in appropriations enacted in some prior year? Mr. BRUNDAGE. Well, they use up the previous appropriation first before the}' go on the current. The CHAIRMAN. I understand, but I mean to show that the control of the expenditure budget Mr. BRUNDAGE. Yes. The CHAIRMAN. Has passed from Congress to the executive branch. Is it not true that up to half of the expenditures in fiscal year 1959 will be made from appropriations which are not before the appropriation committees and Congress this year? Mr. BRUNDAGE. That is about the proportion. The CHAIRMAN. SO, therefore, the Congress has practically lost control of the annual rate of expenditure. And that makes it more incumbent upon the executive branch to cut the waste and inefficiency. Senator J E N N E R . Mr. Chairman, has the Congress not lost control of the budget? The responsibility belongs on the Congress. That is one of the powers that we still have. We have not given it away. That is the control of the purchases. And it is up to us to exercise our authority and stop this foolishness. We cannot go on this way. There is no need to harangue the executive department of Government. They might click here, there and beyond, but we buy this stuff, and we have been buying it year after year. And it is our fault, and we can stop it and nobody else can. But I do not want to see a bill like this. I t do not know the details of this. I do not want to see a bill like this railroaded through this DEBT CEILING INCREASE 239 committee and rushed onto the floor, as a great emergency. We have been living with panic buttons ever since I can remember; it is one emergency after another. But I again reiterate my simple statement: I t is awfully bad to be broke and awfully bad to be dead, but it is worse to be both. The CHAIRMAN. Just one word about these unexpended balances. I think they constitute one of the greatest obstacles to a more efficient expenditure of the funds appropriated. This loss of annual expenditure control by Congress began in 1946; no, I suppose it was before that. Senator K E R R . That was when we lost control of Congress. The CHAIRMAN. Previously we were appropriating mainly on a current and contract basis. For long-term projects we would make a contract. For instance we would contract for a battleship and we would appropriate the }^early payments on that battleship. Congress had a chance each year to go over it and see if they wanted to continue to build that battleship. This practice was replaced by the policy of appropriating in full in advance. I think the Congress did it. I do not think the administration had any responsibility for the change. I t was done by the Congress and originated in the House, if I am correctly informed. There it was decided that it would be more economical to appropriate the full amount in advance for multiyear projects like airplanes and battleships, and so forth, even though they would not be constructed during the year in which the appropriation was made. That is the way it started. It has grown and grown until now we have approximately $70 billion of unexpended balances, and we appropriate $72.5 billion more, or would under this budget. And that makes it more important, because it makes available for expenditures actually about some $140 billion, so far as appropriations plus balances are concerned. I am right about that; am I not? There woukl be total authorization for Federal agencies to spend $140 billion, if it were physically possible to do it? Mr. BRUNDAGE. Well, our proposals for 1959 indicate that $49.7 billion will be out of new obligational authority requested, and $24.3 billion out of balances for prior authorizations. The CHAIRMAN. I t is one-third. Mr. BRUNDAGE. And let me sa}^ also that I have supported, as you know, bill number S. 8002 which would, I think, help to bring control of expenditures back. The CHAIRMAN. I know you have. I would like to add to what Senator Anderson said that the Senate three times passed a single appropriation bill and provided in that bill for a limitation of expenditures so they would know exactly what they were authorizing to be expended annually, but the House has never agreed to it. We need a fundamental reform, it seems to me, of our whole budgetary system; you will agree with that? Mr. BRUNDAGE. I should know. I have been working on that for a number of years and strongly believe in what Senator Martin says. The CHAIRMAN. We should have one bill before us; then we could add up the totals; and we could put the expenditure total alongside an estimate of revenues in the bill so we would know what we were doing. As it is now, Congress does not know whether they are voting for a budget in balance or out of balance. Mr. BRUNDAGE. I agree with that very strongly. 240 DEBT CEILING INCREASE The CHAIRMAN. Appropriations bills come up at different times, and at no one time can they be consolidated to show the overall picture. In addition, they are in terms of appropriation, not annual expenditures. Senator MALONE. Mr. Chairman, I have a letter here from Carl Hayden, enclosing a copy of a letter that he has written the chairman that has to do with the post office. If it is not a part of the record, I will ask that it be made a part of the record. The CHAIRMAN. Without objection, it will be made a part of the record. (The letter of January 24, 1958, from Senator Carl Hayden to Senator Byrd, is as follows:) U N I T E D STATES SENATE, C O M M I T T E E ON A P P R O P R I A T I O N S , January Hon. G E O R G E W. 24, 1958. MALONE, United States Senator, Senate Office Building, Washington, D. C. D E A R G E O R G E : I trust t h a t you m a y agree t h a t there is some merit in my l e t t e r to Senator Byrd, a copy of which is enclosed. Yours ver}^ sincerely, CARL HAYDEN. U N I T E D STATES SENATE, C O M M I T T E E ON A P P R O P R I A T I O N S , January Hon. H A R R Y F. 24, 1958. BYRD, Chairman, Committee on Finance, United States Senate, Washington, D. C. D E A R H A R R Y : The fact t h a t your committee must give consideration to thebill, H. R. 9955, to increase the public-debt limit by $5 billion, impels me to point out t h a t nothing of t h a t kind would have to be done if the operations of t h e Post Office D e p a r t m e n t had been financed on a break-even basis during t h e past 12 years. Instead, t h a t D e p a r t m e n t has incurred t h e following deficits each year: 1946 $129, 000, 000 1953 $650, 000, 000 206, 000, 000 1954_ 399, 000, 000 1947_ 277, 000, 000 1955_ 363, 000, 000 1948_ 577, 000, 000 1956_ 464, 000, 000 1949_ 545, 000, 000 1957_ 522, 000, 000 1950_ 565, 000, 000 1951720, 000, 000 1952_ Total 5, 400, 000, 000 I have listed these figures for two purposes: 1. To show t h a t if these deficits had not been incurred your committee would not be required to recommend t h e e n a c t m e n t of H. R. 9955. 2. To express t h e hope t h a t the members of your committee m a y join with other Senators to insure t h a t hereafter t h e Post Office D e p a r t m e n t will be authorized to collect sufficient postage to pay its operation expenses. Unless this is done, the indications are t h a t , depending upon t h e cost of proposed p a y increases, t h e deficit for t h e present fiscal year could be anywhere from $700 million to $900 million. Yours very sincerely, CARL HAYDEN. Senator M A L O N E . Mr. Chairman, in the absence of a chance to question Mr. Anderson, I would like to have included as a part of the record the summary I made last year following my examination of former Treasury Secretary George Humphrey, which covers the field, and have it appear following the Secretary of Treasury's testimony. The CHAIRMAN. Without objection, that will be done. DEBT CEILING INCREASE 241 Senator M A L O N E . NOW, Mr. Chairman, I will also ask permission to amend the record so that I can make a summary statement, if that is all right with the chairman. The CHAIRMAN. That is satisfactory. Senator MALONE. I am glad that the chairman is sending Mr. Brundage back to bring in something that may be at least real and beyond that which was in his speech this morning. Now, everyone knows that we will be fighting the next war in the air and under the sea, with radar and with long-range planes. Right at this moment the American hemisphere can be defended from North America. If they wanted to save that $15 billion by just stopping nonessential expenditures and take $5 billion of it and put it into long-range planes (such as the B-52) and into missile development, the missiles taking the place of the planes wherever and whenever General Twining and the others agree that they should, then you can save $10 billion and not raise, but lower, the national debt and lower the taxes. However, if the Congress votes this time for the $4 billion or $5 billion foreign aid on top of the other useless expenditures, extends a free import bill, makes money available to continue to finance organizations and individuals to go abroad and send this stuff back, then the Senators and Representatives, themselves, are contributing to the downfall of the United States of America. There is no need to retain Mr. Brundage, as far as 1 am concerned, with his testimony. If we took all of his recommendations, it has all gone in the first bill that he would give foreign nations in the same recommendation; therefore, I think they are really unimportant. (The remarks subsequently made by Senator Malone, as amended, are placed in the record following the interrogation of the Secretary of the Treasury, in accordance with permission granted by the chairman. See p. 94.) The CHAIRMAK. The committee is adjourned subject to the call of the Chair. (Whereupon, at 12:15 p. m., the committee adjourned.) DEBT CEILING INCREASE TUESDAY, FEBRUARY 4, 1958 U N I T E D STATES SENATE, COMMITTEE ON FINANCE, Washington, D. C. The committee met, pursuant to recess, at 10:15 a. m., in room 312, Senate Office Building, Senator Henry Flood Byrd (chairman) presiding. Present: Senators Byrd, Kerr, Frear, Anderson, Martin, Williams, Jenner, Malone, Gore, and Bennett. Also present: Elizabeth K. Springer, chief clerk. The CHAIRMAN. The committee will come to order. The committee is continuing its consideration of a bill temporarily to increase the statutory Federal debt limit. At the previous session, Mr. Brundage, you were requested by the committee to bring in an itemized list of reductions in expenditures and the increases in expenditures. Will you please proceed, sir, with your statement? STATEMENT OF HON. PERCIVAL F. BRUNDAGE, DIRECTOR, BUREAU OF THE BUDGET, ACCOMPANIED BY MAURICE H. STANS, DEPUTY DIRECTOR; WILLIAM F. McCANDLESS, ASSISTANT DIRECTOR FOR BUDGET REVIEW; AND SAMUEL M. COHN, CHIEF, FISCAL ANALYSIS Mr. BRUNDAGE. Mr. Chairman and members of the committee, in response to your request last Thursday, I am submitting a statement summarizing the changes in expenditures from the fiscal year 1958 to the fiscal year 1959, separating the decreases which require legislation and those which can be made without modification of existing legislation, except action by Congress on appropriations. The analysis shows, separately, both increases and decreases for the various agencies. I t was compiled from the budget document. For all agencies except the Department of Defense, we analyzed the appropriation accounts with changes of more than $500,000; that is, those which would round to more than $1 million. For the Department of Defense, we analyzed cost categories which are more informative on types of procurement and give approximately the same result in total. The analysis shows decreases in expenditures from 1958 to 1959 totaling $3,709 million. The increases from 1958 to 1959 amount to $4,858 million. Thus, net budget expenditures are estimated to increase $1.1 billion, from $72.8 billion to $73.9 billion. The total decreases from 1958 which this analysis shows is $1,715 million greater than the tabulation of $1,994 million which Secretary of the Treasury Anderson submitted to this committee, for 2 main 243 244 DEBT CEILING INCREASE reasons. His list excluded major national-security programs, and it was taken by categories from the summary tables. Within these categories, our detailed analysis shows that there were both increases and decreases, which partly offset each other. Decreases below 1958 requiring legislation are: Postal-rate increase, which will reduce the postal deficit by $700 million. Proposed transfer of the financing of forest and public land highways, $31 million. School assistance in federal^ affected areas, $7 million. In addition, as a partial offset to the hundreds of millions we are spending on new airways facilities, legislative action will be required: To retain in the general fund, rather than transfer it to the highway fund, trust the present tax on aviation gasoline, $46 million. To raise that tax to 3% cents and levy a 3%-cent tax on jet fuel $16 million. If our recommendations for modifications in existing programs are not accepted, estimated expenditures for 1959 could be increased by $175 million for the acreage reserve of the soil bank and $35 million for school grants in federally affected areas. All these together add up to approximately $1 billion, which I referred to last week, in addition to our request for extension of present tax rates for another year. The reductions below 1958 proposed by administrative actions, or where no legislation is required, are: Decreased expenditures for defense support in mutual-security program, $60 million. Reduced purchases for strategic materials and civil-defense stockpiles, $180 million. Decrease in net loans by Export-Import Bank, $343 million. Veterans 7 Administration, direct-loan program ends, $150 million. Decline in eligibility of veterans for Korean war readjustment benefits, $103 million. Reduction in Agriculture, principally CCC, $651 million. Reductions in number of uniformed forces, Defense, $328 million. Reduced procurement of conventional weapons, Defense, $615 million. Other decreases—they are detailed on the attached statement— add up to $541 million. Senator ANDERSON. 1 would like to understand how they cut this $651 million to the CCC. I thought they were going to spend more next year, not less. Mr. BRUNDAGE. There is a little more detail which is attached to the table. Senator ANDERSON. Will it show, state how the $651 million is cut? Mr. BRUNDAGE. That is explained. It is on page 4 of the tables. The largest reduction, $432 million is in CCC, reflecting decrease in expected purchases of commodities, and the soil-bank acreage reserve shows a decrease of $117 million, reflecting decision to terminate the program at the end of the 1958 crop year, and the Farmers' Home Administration loan disbursements are decreased by $55 million. Senator ANDERSON. And would it be your understanding that a decrease in the termination of the program in 1958, so they wouldn't DEBT CEILING INCREASE 245 have to pay out their money at the end of this year, would reduce the 1959 fiscal situation? Mr. BRUNDAGE. Yes. Senator ANDERSON. I thought it would become effective next fiscal year. Mr. BRUNDAGE. Well, it will affect 1960 more than 1959, but it would affect 1959 by that amount. Senator WILLIAMS. The cancellation is supposed to come into effect at the end of the calendar year, whereas the fiscal year runs over until June; is that where the difference is? Senator ANDERSON. It is all fiscal 1959, is it not? Mr. BRUNDAGE. But it runs until June of 1959. Senator ANDERSON. YOU don't do it on a per month basis. Well, I didn't mean to interrupt the meeting. Senator M A R T I N . Are we going to ask questions. Mr. Chairman? The CHAIRMAN. I would suggest this procedure to the committee; first, that, we would get a complete itemization of the $3,709 million. Do I understand that you took as a basis the figures given by the Secretary of the Treasury? Mr. BRUNDAGE. N O ; we made it up ourselves. The CHAIRMAN. These figures which you have given here as itemized don't appear to total $3,709 million. Mr. BRUNDAGE. Oh, yes; the}^ do. The CHAIRMAN. Where is that shown? Mr. BRUNDAGE. The table is attached. Senator J E N N E R . Mr. Chairman, here is an item, for example, ""Decrease in net loans by Export-Import Bank," $343 million. Now, yesterday, I believe, the Committee on Banking and Currency reported out a bill proposing a $2 billion increase in export loans by the Export-Import Bank; in other words, increasing the authorization from $5 billion to $7 billion. Naturally, you couldn't have taken that into consideration. Mr. BRUNDAGE. Oh, yes, indeed. They figured that, by June 30, 1959, their authority would have been entirely committed. You see, the $2 billion is an authorization. Now, they estimate that they are going to make loans and collect loans, and this $343 million is a net figure. And they estimate that, in balance, they are going to collect as much in 1959 as they are going to loan. They expect to loan, I think, something like $400 million or $500 million, but they expect to collect on previous loans, you see. Senator WILLIAMS. If they are going to collect as much as they are going to loan out, why do they need additional borrowing authority? Senator J E N N E R . Yes; that is what I didn't understand. Mr. BRUNDAGE. Well, they have to have authorization in order to make commitments; that is what Mr. Waugh told me. I raised the same question when he asked for it. Senator WILLIAMS. I S this extension of old authority or additional authority? Senator B E N N E T T . It is additional authority. Mr. BRUNDAGE. It is additional authority. You see, they start negotiating the loans a good many months before the}^ actually establish the credit and make any cash available. Senator M A L O N E . What are most of these loans that they make; what kind of loans? 246 DEBT CEILING INCREASE Mr. BRUNDAGE. They are all commercial loans. Senator M A L O N E . T O whom are they made, what type of people and for what purpose? Mr. BRUNDAGE. Well, they will loan, we will say, to the Indian railroads to buy locomotives and rails in the United States. They are all dollar loans. Senator M A L O N E . I t sounds like a wonderful deal, but you go along and cut down for domestic purchases, and so on, so it doesn't make an awful lot of sense to me. Mr. BRUNDAGE. They are required by law to be for domestic purchases; under Export-Import, they can't buy abroad. Senator MALONE. Let me ask you this. Aren't they set up principally to loan money, or do they loan money to corporations and people that are going in business in these foreign nations. Mr. BRUNDAGE. Yes. Senator B E N N E T T . They also loan money to American producers who are selling their American products abroad. Senator M A L O N E . And how do they sell their products abroad? Do they do it like the Department of Agriculture, for example? Senator B E N N E T T . N O . Their people are competing in the foreign markets with their products. Senator M A L O N E . Let me continue with this question for a while, if you don't mind. Senator B E N N E T T . GO ahead. Senator M A L O N E . What I want to know from you, now, is what type of loans do they make to people, corporations and others, going in business in foreign countries? Mr. BRUNDAGE. All kinds of commercial loans. Senator M A L O N E . What for? So that they can go in business in these cheap-labor countries and produce not only for the market there but here as well? All the testimony of the Government officials, added up, is that it is going to be our market that they would sell in. They sell this same stuff back here, don't they, that they produce abroad? Mr. BRUNDAGE. Well, they will buy machinery, all kinds of equipment, and consumer goods. Senator M A L O N E . That is true. I know }rou are only on one side of it, and I am going to have to ask all these questions in order to get the information. For example, they loan money to people in this country to go into the textile business in Japan; is that true? Mr. BRUNDAGE. Well, they would loan money against the bill of lading for shipments of machinery. Senator M A L O N E . That is true. In other words, the best textile machinery; the Export-Import Bank loans to Americans, or anybody else, who take that machinery to Japan and use 17-cent-an-hour labor and ship the textiles back here. Now, is that true or not? Mr. BRUNDAGE. I t is quite possible. Senator M A L O N E . SO, it sounds very good to have the taxpayers of the United States loaning mone} r to buy machinery in this country, but you stop there. No information ever comes out in this committee unless you take it out with a corkscrew. What happens after that, when you go into these cheap-labor countries? They get the money; they borrow it from the taxpayers of the United States, American producers, largely, and put it into Japan, DEBT CEILING INCREASE 247 South Africa, any place in the whole world, and use the labor with going wage there, and then, under our free-trade policy, send the stuff back here; is that true, or not? Mr. BRUNDAGE. I think it is being done, but I think that is better than to buy the machinery in Japan or in England or in Eussia—— Senator M A L O N E . I didn't ask you for your opinion at all. I asked you if that is true. Mr. BRUNDAGG. Yes. Senator MALONE. That is all I want to know. Senator J E N N E R . What I don't understand is how we get a decrease of $343 million, and yet the proposed bill that was reported out yesterday increases the authorization for $5 billion to $7 billion. I don't quite understand that. Senator M A R T I N . Would the Senator yield there? I think this is very important, because these are questions that we must answer on the floor. I would like an explanation as to whether it is possible by certain administrative work that it may not all be used. Isn't that what you are trying to get at? Senator JENNER. Yes. Mr. BRUNDAGE. Well, Mr. Waugh could probably give you a more technical answer. But my understanding of it is that Congress gave the Export-Import Bank a certain authorization to go ahead and make loans, and they have quite a lot of loans outstanding, as you know. And in preparing their budget submission to us, they said that, "We are going to run out of borrowing—of loaning authority," and they have to borrow from the Treasury in order to loan, "before wre get very far into 1959, so we are going to need more authority." And I said, exactly as you said, "How does that gee up with your estimate that you expect to collect substantially all you are going to loan?" And they said that, "During this year, that is, during 1958, we loaned more than we collected, because we had this big British loan where they drew down $250 million, and several other large loans, but we have maturities coming in 1959, so we expect to collect substantially what we anticipate loaning. However, we can't go ahead with our negotiations, with our loan negotiations—and we have to do it from 6 months to a year or 18 months ahead, in order to send the representatives abroad and look into it—unless we have more authority." Senator J E N N E R . I can understand the need for additional loaning authority, the $2 billion, but what I don't understand is how we are going to have a decrease of $343 million when they say they have to have an additional loaning authority to keep operating? Mr. BRUNDAGE. This is merely a decrease between the amount of the net loan disbursements which they expect to make in fiscal 1958, and the amount that they expect to make in fiscal 1959. Senator WILLIAMS. D O I understand that this is just a temporary affair, where they are going to be caught with this jam, and that repayments will come in a little later in the year, and they think they will be back on an even keel later? Mr. BRUNDAGE. I don't know just how much is outstanding. You see, there is a $3.2 billion outstanding (estimate for June 30, 1959) in loans on which the interest and repayments will be coming in. Senator WILLIAMS. H O W much of a guaranty do you have with them without this last $2 billion? 248 DEBT CEILING INCREASE Senator FREAR. The present authority is $5 billion. The CHAIRMAN. They are going to increase it to $7 billion. Isn't that true, that this new authority would be an authorization to spend directly out of debt receipts for additional loans, and once this authorization is enacted, the expenditure is beyond the control of Congress? Mr. BRUNDAGE. It is the authority to borrow from the Treasury and to make loans; yes, sir. The CHAIRMAN. It is referred to as spending out of the debt. They can loan up to $7 billion. Now, what is the total of the loans to date? Mr. BRUNDAGE. They have, according to this estimate in the budget $5 billion statutory authority, loans outstanding of $3.2 billion, and the undisbursed loan commitments are $1.7 billion, so that comes to $4,952 million, you see. The CHAIRMAN. Did the administration advocate the passage of the bill? Mr. BRUNDAGE. Yes. The CHAIRMAN. With the new authorization there would be a balance of $3 billion that the Export-Import Bank could loan. Senator ANDERSON. $2 billion. Mr. BRUNDAGE. $2 billion. Senator FREAR. But they have $1 billion undisbursed. Mr. BRUNDAGE. T h a t is a commitment. Senator FREAR. I t is a commitment, but undisbursed? Mr. BRUNDAGE. That is right. $1.7 billion. The CHAIRMAN. Let's see if we can get it straight as to whether or not there is any necessity for it. Assuming that your figures here are accurate, and it does not come back to Congress for further check b y the Appropriations Committees, they could have outstanding at any one time loans up to $7 billion if this bill is passed; isn't that right? Mr. BRUNDAGE. That is right. The CHAIRMAN. These loans would come out of our Federal debt, so to speak, no matter whether we have a deficit or a surplus, they can pay it out of the debt, is that correct? Mr. BRUNDAGE. That is correct. Senator ANDERSON. Could we have how much they had unused last year? Mr. BRUNDAGE. In reply to Senator Anderson's inquiry, as of June 30, 1957, the end of the last fiscal year—— Senator ANDERSON. H O W much was committed? Mr. BRUNDAGE. The authority was $5 billion still, the loans outstanding were $2.6 billion, undisbursed loan commitments were $1.5 billion. Senator ANDERSON. That is $4.1 billion? Mr. BRUNDAGE. SO they had just under $900 million unused authority. Senator ANDERSON. $4.1 billion against the ceiling of $5 billion. What is the situation June 30, 1958? Mr. BRUNDAGE. We estimate that the loans outstanding will be $3.1 billion. Senator ANDERSON. $3.2 billion you gave a minute ago. Mr. BRUNDAGE. That is at the end of 1959. $3.1 billion is June 30 r 1958. The undisbursed commitments are $1.6 billion. Senator ANDERSON. $1.6 billion. DEBT CEILING INCREASE 249 Mr. BRUNDAGE. And the unused authority will be $300 million, and then at the end of 1959, if we don't get this additional authorit}^, the loans will be $3.2 billion, the commitments would be $1.7 billion. Senator ANDERSON. NOW, looking at that picture, how do you anticipate a reduction in the debt? Mr. BRUNDAGE. Well, the actual collections, as I say Senator ANDERSON. YOU and I are both familiar with figures. Your own figures show the debt is going to rise from $2.6 billion to $3.1 billion to $3.2 billion, plus commitments that rise from $1.5 billion to $1.6 billion to $1.7 billion. If your debts keep increasing, and your commitments keep increasing, how do you make your saving? Senator J E N N E R . Apparently they don't need this additional authorization, or they apparently intend to go ahead and spend some money. Senator ANDERSON. They may need the authorization the way they are going, but when you are increasing your commitments steadily, how can you put in a budget reduction? You can't inflate and decrease at the same time in any books I ever read. I say, Mr. Chairman, that the commitments go up $500 million one year and $100 million the next year in actual loans, and rising, upon their estimates, a hundred million a year each year. Now, if it is rising steadily, how does it fall, simultaneously? It is like Joshua commanding the sun to stand still. But this commands the sun to stand still and to rise and set at the same instant. Senator M A L O N E . Does the Senator from New Mexico remember Lord Keynes' remark, "The more you are—the more you are?" Senator ANDERSON. I never could understand that. Senator J E N N E R . Maybe in this figure representating anticipated collections' they are going to have more collections than loans. Senator ANDERSON. If so, the level of loans drop. Mr. BRUNDAGE. May I give you the figures, Senator? The loan program, that is, for the advancing of loans in fiscal 1958, is $900 million, and we anticipate collections of $300 million, or an increase of $600 million in outstanding loans and commitments, in case it will Senator ANDERSON. Those are the exact figures you give us. You said June 30, 1957, $4.1 billion, and June 30, 1958, $4.7 billion, so that is $600 million, which balances with what you gave. Mr. BRUNDAGE. That is right. Senator ANDERSON. HOW does it reduce total expenditures? Mr. BRUNDAGE. The 1959 figures, the loans are going up, are estimated to go up—of course, this is just a projection—$766 million, and we are expecting to collect $395 million, plus interest of $109 million, and plus recovery of prior year obligations of $131 million, or a total recovery of $636 million as against $766 million. Senator ANDERSON. SO, it would be $130 million? Mr. BRUNDAGE. $130 million, as against the previous year of $600 million and something. So, our decrease of 300 is the difference between the net loans we made—we expect to make—in 1958, and the loans that we expect to make in 1959. Senator WILLIAMS. If I understand you corrcetly, in answering one of Senator Anderson's questions in connection with the June 30, 1959, 250 DEBT CEILING INCREASE figure, you said that these were estimates based on the assumption that Congress did not approve the extra $2 billion. Now, if we approve the extra $2 billion, will your June 30, 1959, estimate change? Mr. BRUNDAGE. N O ; we took that into consideration. Actually, they don't expect to use that up before June 30, 1959, but if they are going to stay in business, they have to make these exploratory commitments, you see. Senator WILLIAMS. May I ask this question. As of this moment, how much of this $5 billion did the Treasury put up? Mr. BRUNDAGE. AS of today, I would think that it would—I think that they have already made the payment on the British loan. I would say probably all but $500 million, they probably put up $4.5 billion, including undisbursed commitments which are charged against the $5 billion authorization. Senator WILLIAMS. They put up about $4.5 billion, and you are going to have to put up the other $500 million later, during the fiscal year? Mr. BRUNDAGE. N O ; we only anticipate another $200 million between now and June 30 in cash, but we anticipate that we will be committed, you see, by June 30 Senator WILLIAMS. But in 1959, }^ou will have to put up how much? Mr. BRUNDAGE. We think that we will use up practically all of our uncommitted authorization. Senator WILLIAMS. YOU will have to put up $50 million between now and the end of 1959? Mr. BRUNDAGE. If we are going to stay in business, we have to make commitments beyond that. Senator WILLIAMS. That gets back to Senator Jenner's question, which I can't understand either. If from today until the end of fiscal 1959, you are going to have to put up additional $500 million, how can you save $343 million? I just can't understand it. Senator M A L O N E . More debt. Senator WILLIAMS. If you are going to have to put up an additional $500 million in the next 15 months, how can you save $343 million during the same period? Mr. BRUNDAGE. Because we expect to have collections. Senator WILLIAMS. Then you are going to have to put up the $500 million in addition to the collections? I am speaking from a Treasury standpoint, not from the standpoint of the Export-Import Bank, from the Treasury Department standpoint, they are expecting to put up an additional $500 million; is that correct? Mr. BRUNDAGE. Yes; but they are getting collections. Senator WILLIAMS. That is $500 million in addition to collections; isn't it? Mr. BRUNDAGE. They are collecting altogether on loans about $400 million, and interest of $100 million, and recovery of prior obligations of $130 million, so altogether, they collect $636 million, which will become available during fiscal 1959. Senator WILLIAMS. Yes; but you are still going to have to put out additional money. Senator ANDERSON. Mr. Williams, I know, is a very good businessman. You are an auditor, are you not, Mr. Brundage? Mr. BRUNDAGE. Yes. DEBT CEILING INCREASE 251 Senator ANDERSON. I t is not fair to say that the terminology you used is completely incorrect when you say "decrease in net loans." I think I understand what your figure is. Ordinarily we increase $500 million a year. This year, we are going to increase $130 million, therefore, the investment of what we might ordinarily call venture capital is smaller this year than it was last. Mr. BRUNDAGE. Yes. Senator ANDERSON. I t wasn't a decrease in net loans? Mr. BRUNDAGE. I t is a decrease in net loans made. Senator ANDERSON. N O ; it is decrease in expansion of loans; is it not? Senator WILLIAMS. It is decrease in comparison to what you have been doing in previous years. Senator ANDERSON. Previously we have been jumping at the rate of about $500 million a year, but next fiscal year, we are going to jump only $132 million, so that is $343 million less than the year before. Mr. BRUNDAGE. I think that is correct. Senator ANDERSON. But it isn't a decrease in loans. Mr. BRUNDAGE. Loans made. The CHAIRMAN. H O W much do you estimate the Export-Import Bank will draw from the Treasury? Senator ANDERSON. It really is not a decrease in net loans. Mr. BRUNDAGE. In new loans—no, that wouldn't—in net loans made would be better. Senator M A L O N E . I would like to ask you, are these Mr. Waugh's figures which were submitted to you? Mr. BRUNDAGE. Yes. Senator M A L O N E . Is Mr. Waugh the same one that used to work for the State Department? Mr. BRUNDAGE. He was Economic Assistant Secretary. Senator M A L O N E . And he is the same one that they sent to Geneva to work on GATT and make reductions in the United States tariff so that we would further divide the American market with the foreign nations; isn't he? Mr. BRUNDAGE. I don't know that. He was a banker in the Middle West before he came down here. Senator M A L O N E . I don't know what he was before he came here, but he has never made any sense since he has been here, and I am trying to ask you if he is the same man that started with the State Department, and also gave the same kind of testimony that you are giving now, and then was sent to Geneva to work on multilateral trade agreements to further divide American markets with foreign nations on the theory that the less markets of our own we have the better off we are. Mr. BRUNDAGE. I haven't kept track of what he did, but he was Assistant Secretary of State for Economic Affairs. Senator M A L O N E . Then he is the one, and therefore, I am not surprised at the figures that they have given. Now, this is the same thing. This intrigues me, the phrases that you folks cook up, ''exploratory commitments". Now, what do you mean by "exploratory commitments"? Mr. BRUNDAGE. Well, if any bank is approached by customers for a loan, and he says, "I would like to borrow for a certain project/' 21297 O—58 17 252 DEBT CEILING INCREASE then the bank has to investigate it. When you make a loan in a small town in this country, all of the information is readily available. When it is dealing in business abroad, it is a lot more complicated and takes more time. But it is the same type of thing. Senator MALONE. In other words, it takes more time for this bank to determine if you loan money to a corporation here to go in business abroad, it takes a little more time to figure out whether he can use that $2 labor and produce the goods and send them back here cheaper than you can make the goods here. I t takes a little time for that; doesn't it? Mr. BRUNDAGE. Well, it takes time to explore the project and see if it is a good business risk. Senator MALONE. I understand that. Now, then, the State Department has been in the habit of making commitments of loans and gifts to foreign nations, and then they come down to Congress with these loans and gifts already promised, and they just say, "Well, if the Congress doesn't support us, of course, our foreign relations would deteriorate/' So, this is about the same thing. What we have to do is give them authority to go ahead on a $7 billion basis instead of a $5 billion basis. Mr. BRUNDAGE. Well, it is a sound basic banking operation, as against a grant or soft loan. Senator M A L O N E . Of course it is sound, because you say it is, and because the State Department says it is. But we have sat here for 12 years and watched the national debt almost double, and all of you are making money. Sometimes it is a little hard to figure out how you are making money and still come back for a debt limit raise about every 2 or 3 years—come back for more money. A bank thai; is making money pays dividends, they don't come back for moro money. Mr. BRUNDAGE. They are paying interest to the Treasury on their borrowing. Senator M A L O N E . Yes, of course, but they don't pay any money back. I t seems kind of odd. Mr. BRUNDAGE. I t is cash, but then it goes out in new loans, because business all over the world is expanding. Senator M A L O N E . Of course. And of course you have to expand this business so that these American corporations can go to these nations where the labor is about 10 percent up to 30 percent of what it is here, and then with the low water transportation and the very low duties and tariffs now, they can ship the stuff back here and throw the American workingmen out of jobs and destroy the American investments. Doesn't it work that way, too? Mr. BRUNDAGE. Well, that isn't the way I would describe it. We have the capital just now, just like England had the capital when we were a colonial country, and I suppose when they sent capital over here we competed with the people back in England. Senator MALONE. I am glad you brought that up. We were a colonial nation, and they wouldn't allow us any manufacturing in 1776. We thought we broke away from that, but now we are back in the colonial deal again, and there is where the free ride and the funny business comes in, from London. I don't think Russia is the danger. I don't think the State Department goes home at night without calling London. So, you are loaning all this money to these DEBT CEILING INCREASE 253 cheap-labor countries to make this stuff and bring it back here. And all you have to do is look at your figures, look at textiles and machine tools and minerals and all the rest of them. The only ones that are working are the ones where we are spending $44 billion a year for national defense to keep up the economy. All you have to do is to read the New York Times and all the rest of them and they will say, "You must have this money to keep up your economy/' But the further you go with that principle, the tougher it is for the workingman and the investor of America. All I am trying to do is get you to say what you believe. You are a part of this outfit and what you believe you have a right to believe. And Mr. Waugh is a part of it. Lord Keynes was a part of it. And now we wake up with a $300 billion debt, with all the private debt in the U. S. double, and we are richer than we have ever been. The only thing is that we don't realize our throats have been cut. We just haven't tried to turn our heads any lately. And one day we are going to take a nose-dive that will make that 1929 one look like a baby, with all of your money invested in foreign nations and the foreign nations have got our market which they now have, and your estimates for $2 billion to expand that situation. Now, you have three other organizations, you have a World Bank, International Bank, one of them organized by Harry Dexter White. Altogether there are four organizations. We finance the Export-Import Bank entirely. The other 3 we finance 36 percent—you check this and see if I am right. But we put in the only real money. We put in the dollars, they put in that funny paper, overpriced in terms of the dollar. So, what we are doing is financing four organizations to destroy our own investments in the United States of America. And you are coming back here asking for $2 billion more. And, of course, your explanation makes about the same amount of sense Mr. Waugh's used to make when he came down and said, "We ought to divide these markets further, because we will be richer." And now, Mr. Waugh is at the top of this bank, isn't he? Mr. BRUNDAGE. He is president of the bank. Senator M A L O N E . I am glad to know where he is. Senator M A R T I N . If Senator Malone is through, there are some things that I think ought to be clarified. On page 3, you say—— The CHAIRMAN. I would like to ask one more question. Senator M A R T I N . Yes, I am sorry. The CHAIRMAN. Have you got a list of the loans of the ExportImport Bank? Mr. BRUNDAGE. I don't have the detailed loans, no, sir. The CHAIRMAN. Could you furnish the committee with a list of these loans? Mr. BRUNDAGE. Outstanding as of last June or today, or what time? The CHAIRMAN. AS of today. And likewise, a list of the commitments. (This information is incorporated in the data subsequently submitted by Mr. Brundage which appears on pp. 260-386.) And then, I would like to ask a question about this last loan to Great Britain. That was made suddenly, was it not? 254 DEBT CEILING INCREASE Mr. BRUNDAGE. Oh, the credit was granted a year ago, I think. The CHAIRMAN. And the total credit was how much? Mr. BRUNDAGE. I t was $500 million. The CHAIRMAN. And what was the reason for that loan? Mr. BRUNDAGE. Well, it was to support—they were having a run on sterling, as I recall it. The CHAIRMAN. I understood it was an emergency. Because I happen to know that they called on us in December suddenly for the $250 million, that is correct, isn't it? Senator F R E A R . You granted them it, the Export-Import Bank granted a $500 million loan on which they have drawn $250 million? Mr. BRUNDAGE. That is correct. The CHAIRMAN. And then, they called suddenly for the balance of it? Mr. BRUNDAGE. N O , they haven't called for it. Senator WILLIAMS. They have called for half of it? Mr. BRUNDAGE. They have only drawn half of it; yes, sir. The CHAIRMAN. They have only drawn half of it. But didn't they want the total amount in December? Mr BRUNDAGE. N O . Senator B E N N E T T . That was the first drawing, Mr. Chairman. Mr. BRUNDAGE. That was the only drawing that they have made. The CHAIRMAN. I have got it very definitely that they desired the total amount at that time to help the sterling bloc, to maintain the value of the English pound. Now, do you think that is a proper Mr. BRUNDAGE. There was some discussion, but they only took half of it. The CHAIRMAN. D O you think that is a good bankable loan? Mr. BRUNDAGE. I do, from what I have heard of it. The CHAIRMAN. To make loans to other countries in order to maintain their currency? Mr. BRUNDAGE. Well, it is a loan against pledged British wealth. The CHAIRMAN. IS that the type of loan that we have been making? Take France, where the franc has gone down so much, and other countries, are we loaning those countries money in order to stabilize their currency? Mr. BRUNDAGE. Well, there is an outstanding French loan, but we haven't loaned France, I don't believe, anything last year, and are not proposing to loan them anything new. (Mr. Brundage later supplied the following information:) One loan commitment to France for $46 million was made in t h e calendar year 1957, b u t no disbursements were made against it. This loan was to Air F r a n c e ; it was not made for the purpose of stabilizing the French currency. The CHAIRMAN. Who finally passes upon these loans, the ExportImport Bank? Mr. BRUNDAGE. There is a committee, and then it goes before the National Advisory Council, which is chaired by Treasury. The CHAIRMAN. Who has the final approval? Mr. BRUNDAGE. They have to be approved by the National Advisory Council, which, as I say The CHAIRMAN. What is the National Advisory Council? Mr. BRUNDAGE. Well, it is an interdepartmental committee, it was chaired by the Treasury, it was represented by State. DEBT CEILING INCREASE 255 (The material requested is as follows:) T h e National Advisory Council on International M o n e t a r y a n d Financial Problems was established by the Congress in t h e Bretton Woods Agreements Act (59 Stat, 512, 22 U. S. C. sees. 286, 286b), approved July 31, 1945, which provides t h a t "Sec. 4 (a) I n order to coordinate t h e policies and operations of t h e representatives of the United States on the fund and the bank and of all agencies of the Government which make or participate in making foreign loans or which engage in foreign financial, exchange or monetary transactions, there is established in the National Advisory Council on International M o n e t a r y a n d Financial Problems (hereinafter referred to as the 'Council'), consisting of t h e Secretary of the Treasury, as Chairman, t h e Secretary of State, the Secretary of Commerce, t h e Chairman of the Board of Governors of the Federal Reserve System, t h e President of the E x p o r t - I m p o r t Bank of Washington, and during such period as t h e Foreign Operations Administration shall continue to exist, the Director of t h e Foreign Operations Administration." Senator ANDERSON. Would it be possible to find out that the reason Britain only got half of it was because we only had half? You couldn't loan $500 million on top of $4.9 billion, could you? Mr. BRUNDAGE. We have given the credit out of the $5 billion authorization. Senate B E N N E T T . May I comment to my colleague from New Mexico that the full $500 million is calculated in the commitments which add up to the $4.9 billion. Senator ANDERSON. In the $1.7 billion? So it is already in there. Senator WILLIAMS. That is my understanding, and that leads up to the next question, which was on my mind before. The Treasury is committed to furnish this money if they call for it? Mr. BRUNDAGE. That is right. Senator WILLIAMS. And then, after they furnish it, it becomes a part of the national debt? Mr. BRUNDAGE. That is right. Senator WILLIAMS. NOW, forget for the moment all about the question for the additional $2 billion. How much more call can be made on the Treasury to meet this $1.7 billion of commitments? Does that mean, assuming we stop as we are, that they are committed for the $1.7 billion, that you would have $1.7 billion to put up during the next 15 months? Mr. BRUNDAGE. If it was all called, yes, we would; yes. Senator WILLIAMS. YOU are operating on the assumption that it will be called—you said it was $4.9 billion—it will be committed as of June 30, 1959? Mr. BRUNDAGE. It will be committed, but I don't think it will be all called. Senator WILLIAMS. YOU don't think it will be disbursed at one time? Mr. BRUNDAGE. N O . Senator WILLIAMS. D O you think that a very great percentage of it will be disbursed? Mr. BRUNDAGE. I might say it is a line of credit. Well, they estimate as closely as they can, based on the calculation for each individual credit line, just how it is going to be drawn down, and that is how we make up our statement. Senator WILLIAMS. Based upon that estimate, do you think they need to build additional credit? Mr. BRUNDAGE. I think it is a wise thing to give it to them, yes; I don't know whether they need to build $2 billion or $2.5 billion or 256 DEBT CEILING INCREASE $1.8 billion or anything like that, but I think it is a wise thing, if you think it is a good program, if you want to keep them in business, I think we ought to give them $2 billion. Senator WILLIAMS. Forgetting for the moment whether it is a good program or not, I am speaking about the needs of the program; based on the estimates of June 30, 1959, they wouldn't be using any of this additional $2 billion—and that is based upon their own estimates— and if they won't be needing any of that 15 months from now, why give them an additional $2 billion at this time? Mr. BRUNDAGE. Because they can't negotiate any loans if they are at the end of their authority; they have to stop. Senator WILLIAMS. They can negotiate on the basis that payments are coming in faster than they are paying out, can't they? A lot of people in business have to negotiate on the basis of incoming revenues. Senator MALONE. But they couldn't make a definite commitment without us making it higher first. And I think that is what Mr. Waugh is after. Mr. BRUNDAGE. They feel that they cannot negotiate unless they have more flexibility. Senator WILLIAMS. When you furnish the chairman's list of loans, can you put on there the date the loans were made, and, where they are delinquent, the extent? Mr. BRUNDAGE. Surely. The CHAIRMAN. And, Mr. Brundage, will you also state the justification for the loan. Now, the justification for the British loan, as I understand, was to help stabilize if possible the British pound; is that correct? Mr. BRUNDAGE. Yes. (This information is incorporated in the date subsequently submitted by Mr. Brundage which appears on pp. 260-386.) The CHAIRMAN. I S that a policy of the Export-Import Bank? You take in a great big territory when you start to stabilize the currency of the nations, especially nations that heretofore haven't paid their debts to us. Senator J E N N E R . I didn't think, Mr. Chairman, the ExportImport Bank made loans to governments; I thought that came from the International Monetary Fund. The CHAIRMAN. But it has made this loan to Great Britain. Senator FREAR. I don't know whether this will throw any light on it or not. I agree with what you and the Senator from Indiana have said; I don't think it is the policy of the Export-Import Bank to loan under such circumstances, but I believe in this instance the loan was made to England at the request of the State Department to make this loan. And the only money that was available apparently at that time was in the Export-Import Bank, and they called upon the Export-Import Bank to make the loan, and for that loan there are British securities to secure the loan that are held in this country. Senator J E N N E R . Following that same line of reasoning, why wouldn't it have been the proper loaning agency to go to the International Monetary Fund and have all the nations chip in and increase that fund and loan to the British Senator F R E A R . I am not on the witness stand, I just wanted to throw a little light on this. And I wanted not to justify it, but to tell you that the Export-Import Bank didn't seek this loan, but they were requested to make the loan. DEBT CEILING INCREASE 257 Senator MALONE. This will be the same thing as the $3.75 billion that we gave England in 1946 and the $4 billion or $5 billion since. The whole record of Government for 25 years is, wherever there is any money approved by Congress, somebody like Waugh has control of it, and they commit it some place outside of this country, so the only chance Congress has is just not to go ahead and give you fellows a chance to spend it. I know you are sold on an international Socialist deal, that the more they produce over there and bring in here and the more workingmen that are on the street and the more investors that lose their money, the better off we are. Your whole setup would prove that. And I am not through questioning you yet on some of the things that you have here. You wanted to cut down on American production and put it abroad. I t has been the policy for 25 years, and Congress has voted for it. They cannot blame you or the President, they cannot blame any one of the three Presidents. If Congress does not vote for it he cannot do it. They cannot divide our domestic markets among all the nations of the world, they cannot divide the cash of the American taxpayers among all the nations of the world, unless Congress votes for it. Mr. BRUNDAGE. We cannot expand our exports, if we don't either expand our imports or lend money. Senator M A L O N E . Your exports, that is what we are paying for. Every hundred pounds of wheat you send to Cuba costs the taxpayers $1.35, and you call it foreign trade. I could go on, but this is not the place for it. I hope you are back when this matter comes up. Mr. BRUNDAGE. May I read this paragraph from page 131 of the budget; I think it may throw some light on this question: From time t o time the bank, t h a t is, t h e E x p o r t - I m p o r t Bank, is called upon t o provide financial assistance to meet emergency situations adversely affecting normal trade between the United States a n d another country. Such loans m a y t a k e t h e form of credit to a foreign central b a n k or other bank or financial institution t o provide dollar exchange for a wide range of United States exports, credits t o fund commercial arrearages resulting from dollar-exchange difficulties, or credits t o assist in financing purchases in t h e United States required for reconstruction abroad following a national disaster. In 1957 a $500 million credit was authorized to the United Kingdom, secured by collateral, to meet dollar requirements for goods and services to be obtained in the United States. The CHAIRMAN. What interest is being paid on this? Mr. BRUNDAGE. The estimate of emergency credit authorizations for 1958 is $60 million. Emergency credits in 1959 will be financed out of the $2 billion increase in authority proposed for later transmission. The CHAIRMAN. Is that to England also? Mr. BRUNDAGE. There isn't any country defined. The CHAIRMAN. You said emergency credit estimated Mr. BRUNDAGE. N O ; that 60 isn't England. The CHAIRMAN. What interest would England pay on this loan? Mr. BRUNDAGE. I don't know what the rate is. The CHAIRMAN. Can your staff give it to us? Mr. B E N N E T T . Mr. Chairman, that was discussed at the committee yesterday. M y memory is that it is 4 percent. (Mr. Brundage supplied the following information for the record:) T h e E x p o r t - I m p o r t Bank Loan of December 21, 1956, to t h e United Kingdom carries an interest rate of 4}i percent on the a m o u n t s disbursed. 258 DEBT CEILING INCREASE Mr. ANDERSON. Could he submit, Mr. Chairman, the part of the charte^ of the Export-Import Bank that lets the bank make loans to stabilize foreign currencies? The CHAIRMAN. I think that is very important. (The material requested follows:) In response to this inquiry, the President of the E x p o r t - I m p o r t Bank has provided the following information: " W e understand t h a t you were asked w h a t power t h e E x p o r t - I m p o r t Bank has under its s t a t u t e to m a k e loans in support of the currency of a foreign country, a n d t h a t the question referred specifically to our $500 million credit to t h e United Kingdom, authorized on December 21, 1956. This credit was made, to use t h e language of section 2 (a) of the E x p o r t - I m p o r t Bank Act of 1945, 'to aid in financing and to facilitate exports and imports and the exchange of commodities between the United States or any of its Territories or insular possession and any foreign country or the agencies or nationals thereof,' and this language was incorporated in t h e loan agreement with the United Kingdom. In other words, this loan was made t o finance exports to t h e United K i n g d o m . " Mr. ANDERSON. I S that in the powers granted to them? The CHAIRMAN. Have there been other instances where the ExportImport Bank has made loans to stabilize foreign currencies? Mr. BRUNDAGE. Well, it was to pay for exports, it said here from this country. I think the French loans were the only ones, I recall; those were several years ago. The CHAIRMAN. AS I recall, the Export-Import Bank was not established to make loans to other countries. Mr. BRUNDAGE. I t was established to encourage exports. The CHAIRMAN. Are a majority of the loans made to individual firms? Mr. BRUNDAGE. The CHAIRMAN. Yes. Mr. Brundage, will you be kind enough, then, to furnish that data as to the loans outstanding, as to the commitments, and, likewise, the losses that have occurred, and the rates of interest, and then add to it what Senator Anderson has just mentioned in regard to the bank's authority to make loans for stabilizing currencies? (This information is incorporated in the data subsequently submitted by Mr. Brundage which appears on pp. 260-386.) Senator WILLIAMS. Does the Export-Import Bank pay the Treasury Department any interest on this money that you put out? Mr. BRUNDAGE. The Export-Import Bank has paid interest to the Treasury equivalent or greater than the interest that the Treasury is paid on its debt from the beginning. And they have a substantial surplus. The CHAIRMAN. Would you add to that statement the other facilities that overlap, to some extent, the Export-Import Bank? Aren't there several others working in more or less the same field of international banking? Mr. BRUNDAGE. I will try to cover that. The CHAIRMAN. Would you be good enough to give the committee a list? (This information is incorporated in the data subsequently submitted by Mr. Brundage which appears on pp. 260-386.) Mr. MCCANDLESS. The International Bank, the International Monetary Fund, I think, would bear some relation; the development loan fund of ICA is in the same field. And I don't think of anything else. Those are the ones I think of, Mr. Chairman. DEBT CEILING INCREASE 259 The CHAIRMAN. Would you be in a position to furnish the same information for these other banks, Mr. Brundage? Mr. BRUNDAGE. Could I take the latest available data? I think I probably have the compilation as of the end of December. The CHAIRMAN. I think it is very important to get a complete and current picture. We are making a very large direct authorization, and we are making a lot of loans, and some of them are soft. We don't know whether they are going to be collected or not, and I think we ought to get a complete picture. Mr. BRUNDAGE. What I could do is give you the details, as of December, with an account of any substantial changes since then. The CHAIRMAN. And also the commitments Senator F R E A R . Mr. Chairman, I think the interest rate which was talked about excludes $1 billion, does it not? The Export-Import Bank pays to the Treasury the interest at what is the average rate of your 6- to 7-year obligations or 6- to 7-year period, less an interest on $1 billion; they do not pay interest on the initial $1 billion. Mr. BRUNDAGE. That is the capital; yes. Senator FREAR. The capital; that is right. But they do pay the interest, as you have figured it, on a 6- to 7-year term. Senator BENNETT. And they do pay dividends on the capital. Senator F R E A R . They pay dividends on the $1 billion, which is about 2% percent. Senator MALONE. Mr. Chairman, do I understand now that you are asking Mr. Brundage to give us the full information on the ExportImport Bank, the International Bank, the International Monetary Fund, and the International Finance Corporation, which are the four organizations that are set up especially to encourage American investments abroad, to manufacture the stuff there with the cheap labor and bring it back into this country? I am very much interested in knowing exactly what you are doing. It is awfully hard to get information. And one other thing, Mr. Chairman. They all testify to making money, but they all come back for more money. And then they come back as soon as we give them this $2 billion (and under the questioning of the Senator from Delaware, if they take this credit it is another $2 billion that the debt limit must go up) and they come in through another man the Secretary of the Treasury, and ask for a bulge in the debt limit. If the Senators vote for this they have no choice— if they vote on the Senate floor to spend the money, as they have in the last 24 years; isn't it just a perfunctory matter to ask for a raise in the debt limit then? Mr. BRUNDAGE. Well, it is one of the important factors, of course to be considered in the debt limit, but it is not directly related, it is, indirectly related. Senator M A L O N E . When Congress says that you may have the money, then what would you do, sit around in this committee and just vote to hold your finger on the snout of the tea kettle while you are building up the fire. That is the alternative; isn't it? Mr. BRUNDAGE. YOU can make a line of credit with restrictions on the dates that you can draw down the loan. Senator M A L O N E . That isn't what I asked you at all. If Congress votes for what you are asking for, and they vote for all the appropriations, for $4 billion to go to Europe and Asia as gifts practically, they 260 DEBT CEILING INCREASE vote to keep this $15 billion you have been wasting a year in obsolete material for national defense, and then they come in here and showthat in order to do what you have already voted for we need a raise in the debt limit. We can either vote for it or sit here and hold our finger on the snout of the teakettle and get it burned off; can't we? Mr. BRTJNDAGE. That is one way of looking at it. Senator M A L O N E . In other words, it is just a matter of form that you fellows come in and say, "we want a raise in the debt limit, after we have already voted for the things that make it necessary/' The CHAIRMAN. YOU understand, Mr. Brundage, what the committee wants is all operations related to the Export-Import Bank, and as full a report as possible on the items. Now, we have completed the discussion of the other reductions? Are there further questions? (The material referred to follows:) T H E I N T E R N A T I O N A L B A N K FOR R E C O N S T R U C T I O N AND DEVELOPMENT T h e International Bank for Reconstruction a n d Development was established in 1947 in accordance with t h e Bretton Woods agreement. I t is an international agency t o make loans for reconstruction or economic development projects in m e m b e r countries. Loans are made either t o member governments or, with a government g u a r a n t y , t o enterprises. T h e b a n k has 64 members each of whom is represented on t h e Board of Governors which meets annually. Current decisions are made by the 16 executive directors representing major contributors, or groups of members. T h e b a n k ' s capital is subscribed by members in general proportion to their economic strength. Two percent of member contributions are in gold or dollars freely available to t h e b a n k ; 18 percent is in the members' own currencies which m a y be used only with the consent of the member; 80 percent of t h e subscription m a y be draw r n by t h e bank only if needed to cover bank obligations. T h e b a n k m a y a n d does supplement subscriptions by public or private sale of its own bonds. As of December 31, 1957, t h e bank had available for lending, paid in subscriptions of $756 million in gold or United States dollars a n d $564 million in other m e m b e r s ' currencies, $1,269 million proceeds of borrowings, and $785 million in repayments, sale of loans and other proceeds of operations. Available funds totaled $3,375 million, of which $2,547 had been disbursed on loans. Attached is a copy of a s t a t e m e n t of I B R D loans as of December 31, 1957, received from t h e bank. Statement of Loans—December 31, 1957 29 66 96 111 155 156 AU AU AU AU AU AU Equipment for development Equipment for development Equipment for development Equipment for development Purchase of aircraft Equipment for development . . . . . J. 22, Jury 8, Mar. 2, Mar. 18, Nov. 15, Dec. 3, Orlglml VmclmJu* 1950 1952 1954 1955 1956 1956 1955-1975 1957-1972 1957-1969 1958-1970 1964-1966 1959-1972 4M% 4*% 4%% 4H% 4%% 4%% '&£* TOTAL AUSTRIA (Guarantor) VeriwiidgeaeUschaft, Draukraftwerke 102 VerbundgeseUschaft, Drauknftwerke 148 Vorarlberger Illwerke 118 Vorartberger Illwerke 179 VertNind«eseUachaft,Donaukraftwerkel49 12,000,000 10,000,000 10,000,000 3,571,429 21,000,000 July Sept. June Oct. Sept. 19, 1954 21, 1956 14, 1955 10, 1957 21, 1956 1959-1979 1959-1976 1960-1979 1960-1979 1960-1981 4M% 5% 4%% S%% BE BE BE BE Waterways and port improvements t. 13, 1951 Dec. 14, 1954 Sept. 10, 1957 1953-1969 1957-1976 1965-1969 1963-1972 4V4% 4V4% 4H% 5%% Belgian Congo Development Highway construction and Port and highway development Sept. 13, 1951 Nov. 27, 1957 June 26, 1957 1957-1976 1961-1976 1961-1977 4V4% 6% 5H% 65 BR 75 BR 92 BR Railway rehabilitation Highway rr Railway rehabilitation June 27, 1952 Apr. 30, 1953 Dec. 18, 1953 1955-1967 1954-1959 1959-1969 4H% AV*% 4H% 12,500,000 3,000,000 12,500,000 11 11 95 25 64 76 93 Elec Electric power development Electric power development Electric power development Electric power development Electric power development Elec Jan. 27, Jan. 18, Feb. 24, May 26, June 27, July 17, Dec. 18, 1953-1974 1955-1976 1955-1974 1954-1975 1957-1977 1957-1973 1958-1974 4V4% 414% 4%% 4<A% 4Vt% 5% 5% TOTAL 75,000,000 15,000,000 18,790,000 15,000,000 25,000,000 7,300,000 10,000,000 56,571,429 REUOIUM (Guarantor) Belgian Congo Belgian Congo Ruanda-Urundi Equipment for steel and power industries . Usinas Eletricas Paranapanema Rangoon Port Commiationers BR BR-S BR BR BR BR BR . . . . . 1949 1951 1954 1950 1952 1953 1953 Railway development May 4, 1956 140 BA Port development . May 4, 1956 1960-1976 101 CE Electric power dew Jury 9, 1954 1959-1979 5 153 6 49 83 171 172 Electric power development . Electric power development . Agricultural development Exploration for and use of w Construction of paper and p Coale Coalc Mar. 25, 1948 Nov. 1, 1956 Mar. 25, 1948 Oct. 10, 1951 Sept 10, 1953 Jury 24, 1957 July 24. 1957 1953-1968 1960-1976 1950-1955 1955-1961 1958-1970 1963-1972 1962-1972 37,794,028 13,192,000 S 88,411,972 43,003,000 44,882,000 44,100,000 9,230,000 50,000,000 279,626,972 182,000 153,000 Note! Fomento A Papdes; Fomento A Schwi Fomento A Lota CH CH CH CH CH CH CH 178 44.800,000 CO CO CO CO Highway cc Highway construction ai Apr. 10, Aug. 26, Sept 10, June 6, 1951 1952 1953 1956 1954-1961 1957-1978 1956-1963 1959-1971 16,000,000 30.000,000 20,000,000 2,082,198 — — — 7,917,802 1,999,822 — — 3,273,473 600,000 2,500,000 1,725,680 25,018,946 12,310,153 !8,411 3,271,243 1,047,000 281,000 5,075,411 3.552,243 4fc% 67,698,116 14,400,000 16,290,000 13,274,320 o I 32,535,234 10,389,000 881,054 12,500,000 a 75,000,000 15,000,000 18,790,000 i—i w 166,485,003 2,586,05 5,350,000 831,484 4,518,516 14,000,000 2,187,095 11,812,905 3,018,579 16,331,421 4%% 513,000 298,000 1,745,000 633,000 13,500,000 15,000.000 2,500,000 1,300,000 20,000,000 12,200,000 445,544 43 68 84 144 35,748,729 w ^T6TAL~ e m u (Guarantor) Fomento 4 Endesa Fomento & Endesa 281,981,271 3,571,429 7,050,234 Note > Note 3 194,090,000 J 100,000,000 S 50,000,000 54,000,000 54,500,000 6,190,509 17,290,762 12,600,000 9,818,000 9,847,000 16,000,000 30,000,000 20,000,000 10,000,000 160,800.000 MtAZn. (Guarantor) Brazilian Traction (1st Brazilian Traction (2nd Brazilian Traction Sao Francisco Hidro El Com. Estadual Energia 309,000 317,730,000 AUA Electric p AUA Electric power development . AUA Electric power development . AUA Electric power development . AUA Electric power development . 14 48 107 174 1,280,028$ 7,794,000 6,996,000 2,146,000 9,118,000 3,252,000 0,400,000 — — — — — $ 100,000,000 $ 50,000,000 54.000,000 54,500,000 9,230,000 50,000,000 3H% 4%% 4%% 4%% 16,500,000 25,000,000 14,350,000 16,500,000 4,232,429 6,897,000 353.000 3,099,000 3,389.000 141,456 20,000,000 12,100,000 9,500,000 13,500,000 2,534,799 2,500,000 854,456 4,197,591 12,200,000 9,600,000 ^664^^*627792 2,342,000 8,803,000 24,647,000 11,251,000 16,500,000 16,500,000 18,326,431 14,350,000 9,703,168 6,673,569 6,796,832 to STATEMENT OF LOANS-DECEMBER Original COLOMBIA (Guarantor) Caja de Credito Caja de Credito Calda* Hidro-EJoc. Co. Hidroelectrica del Rio Lebrija Ferrocarriles Nacionales 18 108 38 113 39 54 119 CO CO CO CO CO CO CO tzs* (Including 74,559 J 2,925,441 $ 2,000,000 $ 2,000,000 — — 3,000,000 1,000,000 — 482,000 148,000 148,000 ~ — — — — 368,000 194,000 194,000 ~ 330,200 84,800 84,800 — — 866,000 — Electric power development Electric power development National railways project Aug. Dec. Nov. Mar. Dec. Nov. June 1949 1954 1950 1955 1950 1951 1955 1952-1956 1957-1961 1954-1970 1959-1975 1952-1971 1954-1972 1958-1980 Agricultural development and light industry Sept. 18, 1956 1958-1963 4*4% 3,000,000 40,000,000 Agricultural development Agricultural development Electric power development 19, 29, 2, 24, 28, 13, 15, to to 31, 1937 (co TOTAL 147 CR 3 DE ECUADOR (Guarantor) Com. Ejec. Vialidad (Guayas) Empresa Electrica Quito, S. A. Empresa Electrica Quito, S. A. Post-war reconstruction Aug. 22, 1947 1953-1972 414% Sept. 20, 1957 Nov. 1, 1957 1962-1977 1959-1961 5%% 6% Highway construction Electric power development Electric power development Feb. 10, 1954 Mar. 29, 1956 Sept. 20, 1957 1958-1964 1959-1976 1962-1977 4%% 4*4% 5% "J Coastal highway project Oct. 12, 1954 (959-1966 4'/i"c 176 EC 181 EC Highway maintenance and construction Railway improvements 94 EC 137 EC 177 EC 104 ES . 14,454,641 Electric power development Dec. 14, 1949 1954-1975 4V*m, Highway rehabilitation Foreign exchange for Development Bank . Telecommunications Highway construction and improvement . Sept. Sept. Feb. June 1950 1950 1951 1957 1956-1911 1956-1971 1956-1971 1961-1977 Equipment for timber production . Oct. 17,1949 1950-1951 Aug. 1,1949 . Apr. 30,1952 Nov. 13, 1952 Mar. 24, 1955 May 22, 1956 1953-1964 1955-1970 1955-1970 1958-1970 1959-1976 TOTAI 31 32 42 166 ET ET ET ET 21 Fi FINLAND (Guarantor) Bank of Finland Bank of Finland Bank of Finland Bank of Finland Mortgage Bank of Finland Oy 16 FI 61 FI 70 FI 112 FI 142 FI . Power, wood processing and limestone Power, wood processing and agriculture Wood processing Power and wood processing Electric power development . 13, 13, 19, 28, 2,601,000 1 FR 100 FR 131 FR Post-war reconstruction Railway improvement Electric power development May 9,1947 June 10, 1954 Aug. 26, 1955 1952-1977 1956-1966 1957-1975 ___ 124 GU Highway construction and maintenance 141 HA Highway maintenance 135 HO 12,545,000 __ — -97,869 5,000,000 15,000,000 23,500 000 3% 2,300,000 4% 4*4% 4*4% 4*4% 4*4% 12,500,000 20,000,000 3,479,464 2,000,000 1,500,000 _ 1,415 — 21,873,197 1,819,092 1,180,908 35,514,000 — 1959-1970 4*4% 18,200,000 1959-1967 4*4% 2,600,000 Highway maintenance Dec. 22, 1955 1957-1964 4*4% 4,200,000 46 IC 53 IC 69 IC Electric power development Agricultural development Fertilizer plant June 20, 1951 Nov. 1, 1951 Aug. 26, 1952 1956-1973 1956-1973 1954-1969 4*4% 4*4% 4*4% 2,450,000 1,008,000 854,000 79 IC 80 IC Agricultural development Construction of radio transmitter building. Sept. 4,1953 Sept. 4,1953 1958-1975 1954-1966 1,350,000 252,000 5,914^000 ~ - _ - 11,492,000 "^.342",b00~ 1,250,000 _ — 1,491,000 4,514,000 1,806,000 1,355,000 13,509,000 1,491,000 21,184,000 — 825,000 2,102,131 1,559.010 — — 2,288,000 280,000 -• 12,545,000 Z587,981 — 8,087,335 15,412,665 8,001,000 16,506,000 3,055,743 9,712,000 14,720,000 12,500,000 20,000,000 3,478,049 10,743,041 3,468.646 1,256,959 11,531,354 51,994,743 52,291,867 12,788,313 " 16,892,000 609,000 334,000 219,620,000 5,886,000 9,276,000 250,000.000 7,091,567 10,000,000 31,975,000 17,835,000 234,782,000 267,091,567 576,000 239,000 17,624,000 12,775,325 5,424,675 2,187,000 134,344 2,465,656 3,328,000 2,001,087 2,198,913 2,254,000 949,200 705,000 2,450,000 1,008,000 854,000 872,000 w h-l 30,342,000 909,000 724,000 413,000 O 3 2,102,131 ~ 2,939,990 3,494,000 422,306 334,567 May 7, 1956 867,000 867,000 53,000 486,000 194,000 145,000 250,000,000 7,500,000 10,000,000 July 29, 1955 5% 4*4% 89,332,244 H 23 645,000 TOTAL lx)TAL 2,634,000 8,512,019 TOTAL . i9,658,CX 5,000,000 3,530,000 4,254,041 2,600,000 w w 197,000 4", 4'", 4n; 5H f ; 4*4% 4*4% 4**% — 2,000,000 2,900,000 4,500,000 2,038,000 1,985,000 15,034,000 8,500,000 5,000,000 5,000,000 JOTAL FRANCE (Guarantor) Credit National Overseas Railways Administration Electricite et Gaz d'Algerie 4,226,800 — TOTAl 22 ES 7,092,8( $ — 3 o % STATEMENT OF LOANS—DEC E M BE R 31, 1957 (continued) Dal, of 17 19 23 72 167 168 169 170 Indian Iron ft Sted Company Indian Iron ft Sted Company Tata Group of Hydro Companies Tata Group of Hydro Companies LCI.CL The Tata Iron and Sted Co., Ltd. The Tata Iron and Sted Co., Ltd. Air-India International Corp. IN IN IN IN IN IN IN IN 71 IN 159 IN 106 IN 164 IN 109 IN 146 IN 182 IN 161 IN «AN 160 IRN *AQ 26 IRQ ITALY (Guarantor) Casta per il Mezzogiorno Casta per il Mezzogiorno Casta per il Mezzogiorno Railway rehabilitation Agricultural development . . Electric power devdopment Damodar multi-purpose project Railway improvements Railway improvements Railway improvements Railway improvements . . . . . Iron and sted expansion Sted expansion Electric power development Electric power development Devdopment of private industry . . Expansion of sted production facilities. Expansion of sted production facilities . Purchase of aircraft Original 18, 1949 29, 1949 18, 1950 23, 1953 12, 1957 12, 1957 12, 1957 12, 1957 1950-1964 1952-1956 1955-1970 1956-1977 1961-1972 1961-1972 1961-1972 1961-1972 Dec. 18, 1952 Dec. 19, 1956 Nov. 19, 1954 May 29, 1957 . Mar. 14, 1955 . June 26, 1956 . Nov. 20, 1957 Mar. 5,1957 1959-1967 1960-1967 1958-1974 1960-1975 1960-1969 1959-1971 1960-1971 1965-1966 Aug. Sept Apr. . Jan. July July July July (Including 4% m% 4% 4H% 5H% 5H% 5H% 5tt% 4%% 5% 4%% 5H% 4H% 4%% 5Vi% S 34,000,000 S 10,000,000 18,500,000 19,500,000 24,000,000 19,110,000 11,200,000 35,700,000 TOTAL 372,610,000 Jan. 22, 1957 1959-1962 5% 75,000,000 Construction of a flood control project June 15, 1950 1956-1965 3%% 12,800,000 4V4% 5% 4M% 5% 10,000,000 10,000,000 70,000,000 74,628,000 5% 4H% 4«% 5% 5% SYt% 21,500,000 11,200,000 7,500,000 5,300,000 8,100,000 20,000,000 4,300,000 7,000,000 Devdopment Plan for Southern Italy . Devdopment Plan for Southern Italy . Power, irrigation and industrial projects Devdopment Plan for Southern Italy . 10, 1951 6, 1953 1,1955 11,1956 1956-1976 1958-1978 1958-1975 1959-1976 89 JA 90 JA 91 JA 133 JA 136 JA 157 J A 158 JA 173 J A Electric power devdopment Oct. 15, 1953 Electric power devdopment Oct 15, 1953 Electric power devdopment Oct. 15, 1953 Construction of sted plate mill . . . . Oct. 25, 1955 Industrial projects Feb. 21, 1956 Construction of sted strip mill . . . . Dec. 19, 1956 Land reclamation Dec. 19, 1956 Multi-purpose project Aug. 9, 1957 1957-1973 1957-1973 1957-1973 1958-1970 1958-1971 1960-1971 1959-1971 1961-1977 . Oct. . Oct. June . Oct. 6,323,511 $ 2,263,000 1,130,000 433,000 13,446,583 S 8,298,535 4,940,813 4,940,813 4,357,000 1,420,000 — — 31,500,000 20,000,000 16,200,000 9,800,000 10,000,000 75,000,000 32,500,000 5,600,000 Short termfinancingfor devdopment plan . 50 IT 88 IT 117 IT 150 IT 1,200,000 S 2,796,187 1,779,500 9,000,000 32,500,000 - 16,255,687 6,506,054 10,149,511 6,293,946 312,000 28,195,396 5,000,000 - 14,659,348 - $ 13,029,906 — 11,233,500 10,067,000 24,000,000 19,110,000 11,200,000 35,700,000 $ 32,800,000 $ 7,203,813 16,720,500 924,679 9,575,321 17,849,471 6,150,529 11,255,588 7,854,412 10,329,834 870,166 19,861,060 15,838,940 — 29,320,000 18,968,000 14,836,000 9,800,000 10,000,000 72,645,000 59,040,106 10,191,075 14,669,430 3,826,983 7,918,217 10,000,000 15,959,894 285,509,406 197,182,592 126,671,721 70,000,000 56,000,000 19,000,000 - 6,293,946 9,437,000 10,000,000 62,400,000 69,525,000 10,000,000 10,000,000 46,031,536 33,626,670 17,425,712 8,908,626 5,385,389 4,409,000 6,811,000 18,748,000 4,300,000 20,576,348 10,450,320 6.456,389 5,076,479 6,735,554 14,007,061 1,710,009 328,168 123,521 1,151,446 5,992,939 2,589,991 6,671,832 367,328 26,632,672 19,828,925 5,330,570 12,373,017 1,881,783 _ — — 22,368,464 36,898,330 1,071,000 791,000 1,076,000 1,252,000 D (Guarantor) mftGnution •a ft Comision Financkra ft Comision 12 13 56 24 33 103 ME ME ME ME ME ME Electric power devdopment; irrigation Aug. 25, 1955 1961-1980 4%% Sted mill and railroads Aug. 28, 1947 1949-1972 4V4% Electric power development Electric power development Electric power devdopment Electric power development Development of small industrial projects . Railway rehabilitation Jan. Jan. Jan. Apr. Oct Aug. 6, 1949 1953-1973 6,1949 July 1, 1950 11,1952 1955-1977 28, 1950 1953-1975 18, 1950 1952-1957 24, 1954 1959-1969 4%% 4V4% 4V4% 4Vi% 3&% 4H% JTOTAL " Vereenigde Schvrt. My. HoUand-Amerika Lyn •» Lloyd KLM Royal Dutch Airlines 7,7a 8 9 10, 10a 15 163 NE NE NE NE NE NE 59 NE 24,100,000 10,000,000 29,700,000 26,000,000 10,000,000 721,000 — 2,244,700 10,000,000 (Refunding) — 752,000 2,031,000 9,472,112 527,888 3 o Aug. 7. 1947 May 25, 1948 1954-1972 1953-1954 4tf% 414% eofS.S. Raid and S.S. Roebiah . July 15, 1948 Purchase of S.S. Almkerk July 15, 1948 Purchase of S.S. Alblasserdijk . . . . July 15,1948 Purchase of S.S. Friesland and S.S.Drente . July 15, 1948 Post-war industrial reconstruction . . . July 26, 1949 Capital for industry, transport and 1949-1958 1949-1958 1949-1958 1949-1958 1952-1964 3-9/16% 3-9/16% 3-9/16% 3-9/16% 4% 2,000,000 2,000,000 4,000,000 15,000,000 TOTAL 244,000,000 16,6: 2.904,000 2,403,0< 3,968,300 2,013,300 2,868,000 2,307,000 989,000 1,438,000 3,976,000 61,000,000 • 60,8^000 828,000 431,000 289,000 ¥.696,982 84,900,000 19,472,112 — 5.555,588 — 13,119,300 4,440,300 4,000,000 2,000,000 2,000,000 4,000,000 4,000,000 2,000,000 2,000,000 56,585,199 35,341,199 57,024,000 58,329,746 2,670,254 ~ 122,653,000 137,393,333 5,934,555 103,317,212 Purchase of aircraft 3,500,000 7,548,015 o 7,251,000 JAPAN (Guarantor) 830,000 749,680 1,043,611 100,000 213,000 w H 107.680,801 4,000,000 2,000,000 2.000,000 4,000,000 7,451,985 15,000,000 7,000,000 ~~236~,45l,985 to CO STATEMENT Lamm 45 52 81 82 NI NI NI NI Highway construction 7 Construction of grain storage facilities . Highway construction Electric power development OF LOANS—DECEMBE R Date of Original (i*cl*H«t June 7, 1957" . Oct. 29. 1951 Sept. 4,1953 Sept. 4,1953 1954-1961 1954-1962 1957-1963 1955-1963 4V»% 4H% 4W% 4%% June 7, 1951 July 8, 1955 Aug. 26, 1955 May 22, 1956 1954-1958 1958-1975 1959-1971 1958-1975 1957-1967 1959-1976 4>4% 4>4% 4W% Apr. 8, 1954 Apr. 19, 1955 May 3,1956 1957-1974 1960-1975 1961-1976 4%% 4%% 4%% 31. 1957 (contin MCAKAOUA (Guarantor) 44 NI Emp. Nal. Luz y Fuerza Emp. N«l. Luz y Fuerza Inttituto de Fomento National Autoridad Portuaria de Corinto FAKBTAN Agricultural development 121 N I 154 N I Electric p o w e r d e v e l o p m e n t Electric p o w e r d e v e l o p m e n t (Supplemental) 122 NI 130 NI 143 NI Electric power development Agricultural development Port construction and development 97 NO 115 NO 138 NO General development General development Electric power development . . July 8, 1955 N o v . 15, 1956 4% 4%% 22,984.000 25,000.000 25,000,000 727984,000 60 PAK 62 PAK 180 PAK Railway rehabilitation Agricultural development Railway improvements Mar. 27, 1952 June 13, 1952 Oct. 18, 1957 1954-1967 1954-1959 1961-1973 4H% 4W% 6% 27,200,000 3,250,000 31,000,000 99 120 125 126 185 Natural gas pipeline June 2, 1954 Electric power development June 20, 1955 Construction of paper and pulp mill . . Aug. 4,1955 Port construction and development . . Aug. 4, 1955 Financing of private industry . . . . Dec. 17, 1957 1956-1974 1957-1970 1956-1970 1960-1980 1962-1972 4%% 4H% 4H% 4Y*% 5«% 14,000.000 13,800,000 4,200,000 14,800,000 31,000,000 935,600 997.000 Note J — 25,000,000 25,000,000 6,231,499 — — 18,768,501 13,394,617 4,200,000 3,925,243 10,874,757 54,980,021 22^69,979 2,328,235 _ 735,600 997,000 — (Guarantor) Sui Gas Transmission Co. Karachi Electric Supply Corp. Kamaphuli Paper Mill*, Ltd. Trustee* of the Port of Karachi P. I. C. I. C. PAK PAK PAK PAK PAK TOTAL 123 P A N Institute de Fomento Economics 86 PAN 87 PAN Highway rehabilitation Agricultural development Construction of grain storage facilities . 57 PE 67 PE 98 PE raw (Guarantor) Banco de Fomento Agropecuario Banco de Fomento Agropecuario 105 PE 162 PE 116 PE 35,200,000 ~ 77 SA 134 SA 178 SA s o u ™ AFRICA 3,180,8C Sept. 25, 1953 . Sept. 25, 1953 1955-1960 1955-1961 4H% 4H% TOTAL 4,698,426 4,519.191 3,371,000 4,378,820 113,371 1,350,000 507,000 1,174,000 17,504,000 4,317,000 2,410,528 1,300,000 1,700,000 13,959,098 3,407,509 — — — 4,040,902 1,592,491 4,251,771 4,999,771 1,338,235 2,457,827 — 3,661,765 42,173 31,572,9611 9,337,331 1954-1960 1H% Port development . . . Agricultural development Agricultural development Irrigation project . . . Highway maintenance Apr. 12, 1954 Apr. 5, 1955 Aug. 5, 1955 1954-1967 1954-1959 1956-1961 1959-1980 1958-1964 4V4% 4K% 4K% 4*4% Agricultural development Agricultural development Construction of cement plant Nov. 12, 1954 Mar. 13, 1957 Apr. 19, 1955 1957-1963 1959-1965 1958-1970 4V4% 5V4% 4H% Electric p< Nov. 22, 1957 1960-1982 Expansion of transport facilities. Expansion of transport facilities. Expansion of transport facilities Jan. 23, Aug. 28, Nov. 28, Oct. 1, 1956-1965 1955-1963 1958-1966 1960-1967 1951 1953 1955 1957 64,307,558 4,200,000 255,528 353,750 134,000 4VA% (9.701 21,000,000 1%% 4«% 4V4% 5M% 805,000 439,250 392,000 496,000 683,000 410,000 439,250 292,000 748,000 1,101,000 310,000 5,000,000 5,000,000 2,500,000 TOTAL~ 183 PH 6,780,042 July 12, 1955 Dec. 7, 1951 Agricultural d e v e l o p m e n t 4.200,000 112 SO.OO0 405,383 4.200,000 743,278 21,000,000 20,000,000 30,000,000 25,200,000 25,000,000 16,000,000 14.107,000 25,200,000 23,000,000 20,000,000 30,000,000 25,200,000 (Guarantor) Electricity Supply Commission Electricity Supply Con TOTAL 160,200,000 2,810,000 42,662,580 22,995,580 135,200,000 25,000,000 STATEMENT OF LOANS—DECEMBER 31, 1957 (con *£T Rai Irrigation project Port construction and development Oct. 27, 1950 Oct. 27, 1950 Oct. 27, 1950 1954-1966 1956-1971 1954-1966 3%% 4% 3W% Railway rehabilitation Port construction and Multi-purpose project Aug, 9, 1955 O c t 12, 1956 Sept. 12, 1957 1958-1970 1958-1971 1963-1982 4H% 4%% 5%% Construction of grain storage facilities Port construction and development Port construction and development Seyhan Dam multi-purpose project July 7, 1950 July 7, 1950 Feb. 26, 1954 June 18, 1952 1954-1968 1956-1975 1956-1975 1957-1977 3H% 414% 4H% 4%% 3,900,000 12,500,000 3,800,000 25,200,000 58 SR 74 NR 110 EA Electric power development Railway development Railways and harbors Feb. 27, 1952 Mar. 11, 1953 Mar. 15, 1955 1956-1977 1956-1972 1958-1974 4yt% 4M% 4*% 28,000,000 14,000,000 24,000,000 145 RN Electric power development June 21, 1956 35 TH 36 TH 37 TH D (Guarantor) State Railway of Thailand Port Authority of Thailand Yanhee Electricity Authority 128 TH 131 TH 173 TH . . . . $ 4,400,000 TU TU TU-S TU 189,000 $ 796,000 275,000 189,000 — 275,000 S 2,187.000 15,453,000 3,207,000 S 3.000,000 S 18,000.000 4,400,000 12,000,000 3,400,000 66,000,000 106,800,000 27 28 28 63 624,000 S 1,751,000 918,000 3.000,000 S 66.000,000 3,293,000 2,549,000 688,000 831,000 237,000 3,068,000 11,669,000 3,563,000 22,844,000 3,812,707 12,500,000 1,580,064 22,103,537 22,339,000 10,995,653 16,027,000 28,000,000 14,000,000 24,000,000 87,293 — 2,219,936 740,463 TUMCIY {Guarantor) Industrial Development Bank Industrial Development Bank UNITED KINGDOM (Guarantor) Southern Rhodesia Northern Rhodesia East Africa High Commission Federal Power BoardRhodesia and Nyasaland 94,000 30 UR 132 UR 152 UR 20 YU 51 YU1 73 YUj Power and telephone development . Electric power development Electric power development Equipment for timber production . Power, mining, transport, industrial, agricultural and forestry projects . Aug. 25, 1950 Aug. 29, 1955 Oct. 25, 1956 1955-1974 1958-1975 1961-1981 4V*% 4%% 5% 33,000,000 5,500,000 25,500,000 Oct. 17, 1949 /Oct. 11,1951 . \Feb. 11, 1953 1950-1951 1955-1976 1956-1978 3% 4H% 4%% 2,700,000 28,000,000 30,000,000 . . 5,567,000 3,004,347 7,973,000 1,906,000 1,178,000 — 27,098,347 3,084,000 26,400,000 4,846,000 25,500,000 2,700,000 2,406,000 1,192,000 GRANLVTOTALS $3,480,147,893 $ 227,274,429 $ 86,168,278 $ 204,820,031 S 346,990,579 5146,108,352 Less exchange adjustments — 25,594,000 28,808,000 52,614,894,576 w 14,795,077 65,204,923 80,795,077 65,204,923 33,000,000 4,724,354 6,060,304 — 775,646 19,439,696 43,784,658 20,215,342 3 o 52.546,983,372 $ 619,721,814 a 2,700,000 28,000,000 29,929,202 8,879,412 o $2^06,0!5J64 een signed, but the K borrower and guarantor, if any, take certain 179 AUA I N PAK. 181 EC 182 IN 183 PH 466,714 150.000 118,000 15,000,000 987,000 » This includes J8.247.764 of ell SUMMARY OF CURRENCIES REPAYABLE ON EFFECTIVE LOANS (Expressed in United States Currency) Amount Repayments Currency Repayable and Sales Australian Pounds $ 6,846,017 J — Austrian Schillings 2,574,887 28,576 Belgian Francs 19,583,990 2,820,715 Canadian Dollars 104,955,622 14,621,264 Danish Kroner 4,289,579 244,235 Deutsche Marks 48,054,896 1,195,061 French Francs 35,192.036 1,629,331 Iranian Rials 667,782 — Irish Pounds 500,000 — Italian Lire 19,367,606 1,006,451 Japanese Yen 9,876,656 1,463 Luxembourg Francs 603,864 103,864 Mexican Pesos 5,845,350 49,635 Netherlands Guilders 39,257,297 1,729,934 Norwegian Kroner 1,634,077 67,788 Pounds Sterling 120,483,743 9,280,530 South African Pounds 7,952,555 8,962 -Swedish Kronor . 13,206,989 612,918 Swiss Francs 132,999,752 18,811,905 United States Dollars 1,971,198,582 480,111,463 Venezuelan Bolivares 1,839,045 — Yugoslav Dinars 53,047 —_ 52,546,983,372 $532,324,095 Undisbursed Balance of Effective Loans Receivable from Purchasers on Account of Effective Loans Sold or Agreed to be Sold 19,486,515 $551,810,610 Exchange Adjustments Effective Loans Held by Bank Effective Loans Held by Bank $ 6,846,017 2,546,311 16,763,275 90,334,358 4,045,344 46,859,835 33,562,705 667,782 500,000 18,361,155 9,875,193 500,000 5,795,715 37,527,363 1,566,289 111,203,213 7,943,593 12,594,071 114,187,847 1,491,087,119 1,839,045 5J.047 $2,014,659,277 619,721,814 $2,634,381,091 19,486,515 $2,614,894,576 8,879,412 $2,606,013,164 to 266 DEBT CEILING INCREASE INTERNATIONAL FINANCE CORPORATION The International Finance Corporation (IFC) was organized in July 1956 under the aegis of the International Bank for Reconstruction and Development to provide a more flexible means for encouraging private investment abroad in profitmaking enterprise. Its membership comprises 53 countries with an aggregate subscribed capital of approximately $93 million. The total authorized capital is $100 million. The Corporation's articles of agreement require all payments on account of subscribed capital to be made in United States dollars or gold. The purpose of the Corporation is to stimulate economic development in less-developed member countries and in dependent overseas territories of member countries, by investing, without Government guaranty, in productive private enterprises in association with private investors who can provide competent management. The Corporation may not make equity investments, but it nevertheless has considerable latitude in choosing the types of investment most suitable for a particular operation. The pattern of its investments will normally be intermediate between loan capital on the one hand and share capital on the other, and will generally provide for a moderate fixed rate of interest plus some additional return depending upon profits, if any. Some investments will carry some rights to share in ownership which the Corporation can sell to private investors and thus realize appropriate gains. The Corporation will therefore endeavor to obtain convertible debentures, subscription warrants, or some other form of rights to obtain capital stock or shares. It will be the intention of the Corporation, within the limits of its charter, to keep its policies and procedures flexible, and to review and modify them as suggested by experience or changing conditions. In its choice of various eligible investment proposals, the Corporation will be guided, among other criteria, by the extent to which it can promote the investment of additional private capital, by the expected profitability of the investment considering the risks involved, and by the degree to which the investment helps to diversify and increase the attractiveness of its portfolio to private investors. INTERNATIONAL F I N A N C E Statement CO i en Country and obligor of operational investments approved, Dec. 81, 1957 {expressed in United States Operational investment No. Date of— Terms Australia: Duncan's Holdings, L t d . . . Sept. 27,1957 i Brazil: Siemens do Brazil Cia. de Electricidade. June 20,1957 2 Chile: Empresa Minera de Mantos Blancos, S. A. Aug. 20,1957 2. Fixed interest 7 percent per annum and contingent interest based on earnings; maturities 1961-67; option on shares equivalent to 100 percent of investment. Fixed interest 6 percent per annum; maturities 1968-72; option on shares equivalent to 100 percent of investment. Fixed interest 7 percent per annum and conditional payments based on dividends; maturities 1964-68; option on shares equivalent to 50 percent of investment. Fixed interest 7 percent per annum and contingent interest based on earnings; maturities 1961-67, half in Mexican pesos and half in dollars; option on shares equivalent to 40 percent of investment. Fixed interest 7 percent per annum and contingent interest based on earnings; maturities 1960-66, half in Mexican pesos, half in dollars; option on shares equivalent to 50 percent of investment. 00 11 CORPORATION 00 Mexico: Engranes y Productos Industrieles, S. A. 1-ME Bristol de Mexico, S. A 2-ME 1 Initial agreement. Aug. 12,19571. Sept. 27,1957 2. Sept. 10,19571. Nov. 6, 1957 2.. 2 Final agreement. Purpose currency) Original amount Funds not yet eligible for withdrawal by obligor Modernization of lumber mills. $660,000 $660,000 Manufacture of electrical equipment. Industrial plant expansion. 2,000,000 2,000,000 2,200,000 2,200,000 do Aircraft repair shop. Held by IFC o 600,000 520,000 $600,000 520,000 3 a I w w 268 DEBT CEILING INCREASE T H E INTERNATIONAL MONETARY FUND The International Monetary Fund is an international agency established in 1947 in accordance with the Bretton Woods Agreement. It operates as a pool of gold and currencies, contributed by its members, available for purchase by members to tide them over temporary balance of payments difficulties. The fund has 64 members who have subscribed $1,674 million of gold, $2,421 million of convertible currencies, and $4,047 equivalent of nonconvertible currencies. The United States subscription is $2,750 million of the total of $9,016 million. Subscriptions are determined by the fund on the basis of the economic strength and foreign situation of the member country. Fund policies are established by a Board of Governors on which each member is represented and has a vote generally proportional to its subscription and which meets annually. Operations are governed by the Board of 17 Executive Directors representing members with the major subscriptions or groups of members. Exchange transactions with the fund take the form of a member's purchase from the fund of the currencies of other members for an equivalent amount of the member's own currency. Fund resources are available to eligible members on an essentially short term and revolving basis to provide members with temporary assistance to contribute to the solution of their payments problems. Members may also obtain standby arrangements that assure a member that drawings upon fund resources up to specified limits and within an agreed period may be made without reconsideration of the member's position at the time of the drawing. Drawings upon fund resources are not confined to meeting specific and defined types of payments problems. A member's entitlement to draw or to make a standby arrangement is determined after consideration of its circumstances, and its likely ability, with the help of fund resources, to overcome its problems within a short period. Fund purchases of a member's currency are expected, as a general rule, to be repurchased within a period not exceeding 3 to 5 years or reduced by the purchase of the member's currency by another member. The following charges are made for transactions: A service charge of one-half of 1 percent for the purchase of a currency from the fund with the buying member's currency; and a charge payable on the fund's holdings of a currency that exceed 100 percent of the member's quota. The rate of charge rises in two dimensions; the larger the member's drawings relative to its quota, and the longer the period during which the fund holds the member's currency. Charges on transactions effected in 1954 or later are: Charges in percent per annum for each period in which holdings are in excess of quota by (percent) Period of time 0to50 50 to 75 Service charge 0 to 3 months. 3 to 6 months . Y2 to 1 year.... 1l to \y2 years.. l A to 2 years.. 2 to iy2 years.. 7>A to 3 years.. 3 to ZlA years.. V/2 to 4 years.. 4 to 4A years.. 0.5 0 2.0 2.0 2.0 2.5 3.0 3.5 4.0 4.5 5.0 0.5 0 2.0 2.0 2.5 3.0 3.5 4.0 4.5 5.0 0.5 0 2.0 2.5 3.0 3.5 4.0 4.5 5.0 3 months.. 6 months.. 1 year. 1 ^ years.. 2 years ... 2H years . 3 years 3H years.. 4 years 4A years.. Average effective rates in percent per annum for holdings in excess of quota by (percent) 0to50 50 to 75 75 to 100 2.00 2.00 2.00 2.00 2.12 2.30 2.50 2.71 2.04 3.17 2.00 2.00 2.00 2.17 2.38 2.60 2.83 3.07 3.31 2.00 2.00 2.25 2.50 2.75 3.00 3.25 3.50 Compared to former charges, those now in effect are higher on transactions outstanding for short periods (except for periods of less than 3 months for which present charges are the same or lower). Charges are normally paid in gold, but when a member's reserves are below half its quota charges may be paid partly in the member's currency. A charge of one-fourth of 1 percent per annum is made for standby arrangements but, should the country make a purchase during the period of the standby arrangement, this charge is generally credited against the service charge for the transaction, up to a maximum of one-fourth of 1 percent of the transaction. The fund's holdings of currencies are deposited with the central bank or other depository in each member country. For that part of the fund's holdings of a currency that exceeds what the fund considers to be a normal working balance, DEBT CEILING 269 INCREASE m e m b e r s m a y s u b s t i t u t e for deposit nonnegotiable n o n i n t e r e s t b e a r i n g d e m a n d securities. T h e t e r m ' ' c u r r e n c y , " as used in t h i s note, includes b o t h balances with depositories a n d t h e s e securities. T h e following t a b l e shows fund t r a n s a c t i o n s in 1956 a n d 1957 a n d t h e c u m u l a tive t o t a l of t r a n s a c t i o n s w i t h m e m b e r s since t h e e s t a b l i s h m e n t of t h e fund. T h e gross t o t a l s show t h e a m o u n t s of other m e m b e r currencies p u r c h a s e d b y m e m b e r s ; t h e n e t t o t a l s show those purchases n e t of r e p a y m e n t s in gold or dollars, i. e., m e m b e r obligations t o t h e fund o u t s t a n d i n g on D e c e m b e r 3 1 , 1957. INTERNATIONAL MONETARY Exchange FUND transactions and standby arrangements (through Dec. 31, 1957, expressed in millions of United States dollars) amounts Cumulative total to date Member 19571 Gross Member's drawings and their repayment by repurchases or by other countries' drawings: Argentina Australia _. Belgium _ Bolivia Brazil Burma _ Chile Colombia Costa Rica Cuba Czechoslovakia 3 . . . _ _ _. Denmark _ _ Ecuador ___ Egypt El Salvador Ethiopia Finland.... France. Haiti Honduras _. India Indonesia Iran _ _ _. Israel Japan. Mexico _._ Netherlands Nicaragua... Norway Paraguay Peru Philippines. _. Turkey ._ Union of South Africa United Kingdom Yugoslavia _ _. Drawings Repurchases Other countries' drawings Net drawings. _. Drawings outstanding Standbys agreed Drawn _ Expired.. — .__ Amounts available.. Member's repurchases on subscription account: Total 75.0 (2) 2 3.0 -28.0 15.0 2-.2 2 12.5 3 -.7 15.0 2.5 2 -45. 0 -12.5 40.0 7.8 »1.9 0) l.~5 5.0 50.0 2 1.0 37.5 18.7 (2) 12.5 3-.7 34.0 5.0 15.0 -2.5 262.5 1.0 3.8 200.0 3.8 125.0 2 68.8 2 1.9 2 3.5 2 () "V 561." 5 (2)-9.0 693.0 -113 972.0 -59 579 814 1,077 21 1 1,117 -41.1 903 1,717 183 416 4 880 -9.1 Net 75.0 50.0 83.0 6.5 206.0 15.0 52.3 25.0 1.2 47.5 6.0 44.2 5.0 33.0 2.5 .6 9.5 387.5 1.0 6.3 300.0 70.0 46.0 3.8 249.0 45.0 144.1 6.1 9.6 6.4 0 15.0 48.5 10.0 861.5 9.0 2,881.0 3-951 -203 75.0 0 50.0 2 6.5 75.0 15.0 2 31.0 2 25.0 0 25.0 3 2.6 34.0 5.0 30.0 0 0 0 262.5 1.0 2 3.8 200.0 55.0 25.3 3.8 125.0 0 2 68.8 2 3.8 0 2 5.5 20 15.0 21.5 0 2 561.5 0 1, 727.0 < 1, 727 1,378 465 33 2880 -135. 7 i In addition, in January 1958, Turkey repurchased $4 million of its currency with dollars, Yugoslavia $22.9 million and other currencies with dinars, and a standby arrangement was agreed with Surchased ranee permitting purchases of up to $131,250,000 or other currencies with francs through January 1959. 2 Standby in effect at end of period and not drawn or not fully drawn. See table on standby arrangements. 3 Former member. Payments made on settlement of Czechoslovakia's debt to the fund are included as if there were a member's repurchase. « Net member drawings plus outstanding debt of Czechoslovakia. NOTE.—For this table repurchases (or other countries' drawings) of its currency by a member are considered first as repayments of drawings and reported in the top section of the table; only when repurchases (or other countries' drawings) equal to drawings have been completed are they considered as repayments on subscription account and reported in the bottom section of the table. The fund's official accounts make no such division of repurchases. 270 DEBT CEILING INCREASE INTERNATIONAL Standby arrangements MONETARY FUND (amounts expressed in millions of United States dollars; as of Nov. 80, 1957) A m o u n t available Member D a t e of agreement Expiration date Amount agreed Dec. 31, 1955 A g r e e m e n t s in effect: N o v e m b e r 1956. Bolivia ... _ Chile April 1956 Colombia... J u n e 1957..-. Honduras. - . . . . N o v e m b e r 1957. M a r c h 1957 i India, ... .. N e t h e r l a n d s _. . . . S e p t e m b e r 1957. Nicaragua October 1957 Paraguay . Julvl957.. Peru.. . F e b r u a r y 1954... United Kingdom D e c e m b e r 1956 A g r e e m e n t s expired: Belgium J u n e 1952..-. . . . D e c e m b e r 1956. _ Cuba. do Finland .. October 1956 France . ... Iran _ .. M a y 1956 April 1954... . . . Mexico N o v e m b e r 1956. Total D e c e m b e r 1957. . M a r c h 1958 J u n e 1958 M a v 1958 M a r c h 1958 S e p t e m b e r 1958. Aprill958 J u l y 1958 F e b r u a r y 1958... D e c e m b e r 1958 . 7.5 35.0 25.0 3.75 72.5 68.75 7.5 5.5 12.5 738. 53 J u n e 1957 do J u n e 1953 October 1957 N o v e m b e r 1956October 1955 M a v 1957 . . Dec. 31, 1956 4.5 35.0 12.5 12.5 738.5 50.0 12.5 5.0 262.5 17.5 50.0 3.75 50.0 50.0 12.5 1, 377. 78 62.5 Dec. 31, 1957 3.5 16.3 25.0 0 68.8 3.8 2.0 12.5 738.5 262.5 1.9 1,117.4 870.3 E X P O R T - I M P O R T B A N K OF W A S H I N G T O N — S T A T E M E N T O F L O A N S AND A U T H O R I Z E D CREDITS INDEX Terminated credits. ACTIVE CREDITS Africa: Egypt. Ethiopia. Liberia. Portuguese East Africa. Portuguese West Africa. Union of South Africa. Asia: Afghanistan. China. India. Indonesia. Iran. Iraq. Israel. Japan. Pakistan. Philippines. Saudi Arabia. Syria. Thailand. Turkey. Canada: Canada. Europe: Austria. Belgium. Denmark. Finland. France. Germany. Greece. Iceland. Italy. Netherlands. Norway. Poland. Europe—Continued Portugal. Spain. Sweden. United Kingdom. Yugoslavia. Latin America: Argentina. Bolivia. Brazil. Chile. Colombia. Costa Rica. Cuba. Ecuador. El Salvador. Guatemala. Haiti. Honduras. Mexico. Nicaragua. Panama. Paraguay. Peru. Uruguay. Venezuela. Miscellaneous Latin America. Oceania: Australia. New Zealand. M iscellaneous-general: Exporter credit lines—United States capital equipment. Summary: Loans and authorized credits. Loans certified under Displaced Persons Act of 1950. Loans transferred from R F C . Insurance on exports. 271 DEBT CEILING INCREASE E X P O R T - I M P O R T B A N K OF W A S H I N G T O N Terminated credits, loans fully repaid, as of June 30, 1957 Disbursed and repaid Credits authorized Country Interest Cancellations a n d expirations By eximbank B y commercial b a n k s a t E I B risk AFRICA Egypt Ethiopia Liberia Morocco P o r t u g u e s e W e s t Africa Southern Rhodesia $210,000.00 3, 500,000. 00| 4,000,000. 00 70, 596. 82] 1,167,000. 00 40,000.00 40,000. 00 1,102, (XX). 00 40,000. 00 T o t a l , Africa 8,987,596.82 1,669,759.39 $210,000. 00 277, 759. 39 $2, 722, 240. 61 4,000,000. 00! 30, 596. 82 65,000.001 $500,000. 00 $214, 815. 57 518, 644. 85 731. 40 12, 704. 67 6,817,837. 43 500,000.00 746,896. 49 ASIA China India.. Indonesia Iran Iraq Japan Philippines Saudi Arabia Thailand Turkey _ ._ T o t a l , Asia 171,943, 329. 99 16,270, 000.00 100,000, 000.00) 27, 514, 000.00 100, 000.00 255,158, 121. 05 25,850, 000.00 9,000, 000.00 1,286, 000.00; 43,435, 360.00 4,550,357. 86 157,074,015. 08 10,318, 957. 05 21,089, 647.38 16,270,000.00 100,000,000.00] 13,928. 26 27,051,570. 61 222,398. 75 240,030. 64 100, 000.00 15,379,939. 56 87,185, 698. 38,152, 592, 483.113, 659, 968. 73 13,171. 23 25,600,000.00 250,000. 00 9,000,000.00 1,286,000.00 15,415,504. 03 28,019,855.97 2, 975,123. 77 650, 556,811. 04 214,653, 372.06 272, 751,968.18163,151,470. 80 27, 751,839.37 CANADA Canada 375,665,000. 00 192, 550,000. 00 183,115,000.00 3,832, 573. 26 EUROPE Austria Belgium C zechoslo v a k i a Denmark Finland France Germany Greece.. Hungary Iceland Italy Latvia... Netherlands. Norway Poland Portugal R u m a n i a . __ Spain Sweden. United Kingdom Yugoslavia 20,255,000.00 38,800,000. 001 23, 728,931. 61 10,007,600.001 32,636,773. 92 345,260,000.00 67,603,412. 93 7,700,000.00 2,375,000.00 1,004,140.00 86, 549,976. 65 1,903,000.00 109,878,142. 50 11,000,000.00 12,906,742. 52 5,500,000.00 50, 000.00 40,101,371. 78 17,181,500.00 22,500,000.00 517, 667. 00 38,412,399. 74 1,602,566. 52 18,351,179. 91 3, 221,310. 62 38,800,000.00 569, 709.01 5,384,692.62 17,393,457. 98 950, 781. 01 137.63 3, 717. 00] 10,003, 883.00 2, 882. 43 816, 217. 63 15,681,109. 80 16, 952, 781. 69 64, 233,849. 891 280,838,811. 28 187,338. 83 6, 574,905. 56 3,577, 265.29 903, 217. 07 64,021, 588. 64 4, 559. 00 7,700, 000. 001 2,375, 000.00] 32, 716. 26 414, 140.00 590,000.00 7,994, 260. 391 37, 603,069. 34 40, 952, 646. 92 4, 910, 263. 75 56 99 1,892, 217. 97 10, 782. 03 4,593, 596. 70 104,498,146. 60 786,399. 20 12,690, 781*. 07 221, 387. 79 10, 552,000.21 20,895. 09 226, 612. 00 3, 511,233. 85 9,359,330. 941 36,177. 73 1,372, 437. 24 131,820. 51 1, 270,865. 65 4,229, 134. 35 50, 000.00 2, 766,069. 45 23, 766, 561. 50 13, 568, 740. 83! 1, 618,038. 45 10, 915,500.00 179, 973. 81 2,155,000.00 4,111,000.00 22, 500,000.001 517, 667.00 38, 412,399.74 1,903,820.09 Miscellaneous, E u r o p e 895,871,658. 65 204,943, 798. 46 596,107,363. 98 94,820,496. 21 34,645,047. 21 Total, Europe LATIN AMERICA Argentina Bolivia Brazil.. Chile Colombia C o s t a Rica Cuba D o m i n i c a n R e p u b l i c . _. Ecuador E l Salvador Guatemala Haiti Honduras Mexico Nicaragua.. Panama Paraguay Peru 96,072, 300. 00 95, 682,300.00 4, 004. 50 2,390, 489. 02 243. 26 244,415, 158,803, 337. 55 61,178, 988.10| 8,913,824. 74 46,147, 565. 44 18,965, 524.07 1, 787,000. 00| 1, 512,392. 71 90, 560,035. 31 34,391, 561. 95| 3,402, 000.00] 118, 067. 58 2,437, 620.00 2,157, 620. 001 1,824, 500.00 348, 500.00 735, 000.00 735, 000.00 8,350, 000. 00j 2, 670,000.00 2, 766,000.00 1,766,000.00 105, 883,355. 75 41, 696,249. 58 5, 593,800.00 943, 800. 00 7,000, 000.00 2,012, 296.12 000.00 4,800, 000.00 1,600, 40,991, 950. 001 38, 898,587. 761 390, 000.00 2, 492,515. 481 49,393, 495. 47 36,218,410.24] 26, 576,055. 52! 25,689,107. 84 15,177, 541. 37 12, 004, 500.00] 223,728. 67 50 878. 62 30,130! 973. 36 26,037, 500. 00] 283,932. 42 3,000, 000.00 280, 000.00 1,476,000.00 28,376. 44 128,474.96 9,370,736. 02 5,029, 564. 74 2,074, 519. 63 4,954.06 2,069, 946. 84 558,115. r 25, 507. 418,201. •<• 5,680,000.00 1,000,000.00 44, 757,024. 34 19,430,081.83 4,000,000. 00! 650,000.00 4,987, 703. 88 3,000,000.00 200,000.00 2,093,362.24 1,473,853. 82,772.', 7, 684,817. 36 1,025,575.84 642,080. 21 876,016. 78 264,411. 09 272 DEBT CEILING INCREASE E X P O R T - I M P O R T B A N K OF W A S H I N G T O N Terminated credits, loans fully repaid, as of June 30, 1957—Continued Page 1 Disbursed and repaid Country Credits authorized Cancellations and expirations By eximbank By commercial banks at EIB risk Interest LATIN AMERICA—COn. Uruguay _ . . Venezuela Miscellaneous Latin America... Total, Latin America. $17,149,140.00 $14,322,935. 00 53, 760,300. 00 42, 702, 554.11 123,838,693. 92 97,370, 933. 75 923,576,496.28 568,001,973.94 1,750,000.00 1, 750,000. 00 25,000. 00 450,000. 00 250,000. 00 250,000.00 725,000.00 275,000. 00 7, 500,000.00 7, 500,000.00 4,932,098. 73 1,000,000.00 $2,826, 205.00 8,359, 567. 54 $2,698,178. 35 $238, 812. 65 1,334, 773. 63 6,389, 533. 86 3,820,174. 35 20,078, 226. 31 224,749, 549.13 130,824,973. 21 37,151, 684. 92 OCEANIA Australia OTHER COUNTRIES Jamaica Puerto Rico Virgin Islands.. Total, other countries 25,000. 00 450,000. 00 60, 536. 42 450,000.00 60, 536. 42 VARIOUS COUNTRIES Various countries MISCELLANEOUS Special exporter-importer credits _ 29,916. 56 3,902,182.17 40,848.42 Total, terminated credits 2,869, 564,661. 52 1,192,343,903.85 1,284,021,635. 28 393,199,122.39 104, 229,426.09 Terminated exporter credit 930, 500.00 lines _ _. 24,380,000.00 T&ttsr E X F O R T - U M K C T I A M C Of WMMNOTON 2. STATEMENT OF LOANS A N D AUTHORIZED CREDITS December M. °sr i Z2ZZJ?£Z£) Owe (U,-nS.T^Ml»-., Aw— 1 / 2 / ""EKHS."- Awouw EqwvDwe wSbiZi "SASST s~ Ouawwiwj R«W« •agiftsrwr 1<K7. U--TAT10H VUOk Eavpt: F e r t i l i z e r and C h e m i c a l l j ) d y » t r i e s o f Egypt U n i t e d S p i n n i n g *• W e a v i n g Equipment for fertilizer 7-16-47 429 Co., 688 T e x t i l e equipment ( W h l t l n M a c h i n e Works) 6- 9-55 Total $ 7.250,000.00 $ % $ 7.250,000.00 $ 7.250.000.00 $ i 1.728.713'.64 30.000.00 653.55 29.344.45 3.689.78 25.656.67 1.330.64 7,280,000.00 653.55 7.279.346.45 7.253.689.78 25.656.67 1.730.044.28 S (tfiloola: faperl il Ethiopian Government 742 A i r c r a f t and facilities aviation 9-19-55 24.000,000.00 20.700.000.00 6-30-58 3.300.000.00 400.000.00 6-30-58 4.600.000.00 504.750.00 1.350.000.00 302.100.00 75.164.38 Liberia: ftepubl Ic o f 4»9 Liberia Do 497 Do 5?6 Highway c o n s t r u c t i o n W a t e r s u p p l y and sewerage Htqhway c o n s t r u c t i o n protects 1-11-51 5.000.000.00 6-14-51 1.350.000.00 1-20-55 15.000.000.00 12.400.000.00 21.350.000.00 12.800,000,00 Total 6-30-58 2.600.000.00 8.550.000.00 806.850.00 4.095.250.00 1.047.900.00 190,871.01 2.600.000.00 24.270.« 7,743,150.00 464,641.86 o R a i l w a y c o n s t r u c t i o n and 531 Marine dtesel engines frSI-1 I* infl 77 HO 1 M 14 1 * n m o S3 Union o f South A f r i c a : Various mining companiesUnallotted Mining equipment, W 1/ Do Daqqafonteln Mines, Do Blyvooruitzlcht Ltd. Ltd. Solo Mining Do Western Reefs E x p l o r a t i o n Development C o . . L t d . do 498-B do 498-B do 498-C do 498-C do 498-D do *»98-a do 4*8-* do 6-28-51 2.051.588.93 1,154,148.60 1.154.148.60 356.851.82 .797.296.78 87.311.65 1-10-52 7,851.614.85 7,851,614.85 2.777.O54.O0 5.074,560.85 1,167,381.73 728,053.86 728,053.86 214,753.51 513,300.35 58.817.32 1-10-52 6,819.017.49 6,819,017.49 2.411.832.47 4.407.185.02 997.813.35 767.529.33 767.529.31 226.397.6) 541,131.70 69.612.78 1-10-52 9.289,004.01 9,289.004.01 3.285.447.16 6.00J.556.8S 1.348.901.05 1.011.310.56 1.011.310.96 298.305.52 713.005.04 1-10-52 6,661,882.39 6,661.882.39 1.732.096.53 4.929.785.86 138.412.31 998.386.2$ 2.051.588.93 Co., and Do S t l l f o n t e l n Cold H l n l n a C o . . Do K8-A materials, Ltd. •-,*-€ do 1.236.798.57 1.236.798.57 81.700.79 981.466.2t * 74.523.58 to See footnotes em Bag* 3 0 . 00 EXPORT-IMPORT RANK OF WASHINGTON STATEMENT OF LOANS A N D AUTHORIZED CREDITS «*r S^LT^Z; AFRICA - Ul.OU.UMtD BAUO.CE Cuorr. Aimio.ii.D Due ( f a ^ T ^ L w ) A — . J / 2/ °-Btssa- A™^. " t^uyD^ £SbSk STATGTOTLOA^ "i&ftr Rep^i O U M ^ . , '<£" 8.648.935.32 S 1.482,992.98 continued R a n d f o n t e l n E s t a t e s Gold Co., Wltwatersrand. Ltd. Mining Mining equipment, 4 9 8 - F and s e r v l c e s materials, 9-25-52 $ 11,687,767.36 5 11,687,767.36 $ 3,038,832.04 $ 1,151,118.01 1,151,118.01 221,896.12 929.221.89 73.625.22 11,536,976.12 U.536,976.12 1,885,118.69 9.651.857.43 1.275.270.50 1,285,676.73 60,148.15 1,225.528.58 52.508.51 2,388,379.41 620,981.20 1.767.398.21 285.947.17 Do V i r g i n i a Orange F r e e S t a t e Gold Wining C o . . L t d . 498-F do 498-r, do Do Vogelstrulsbult Areas. Ltd. 44tt-r, do 9-28-56 1,285,676.73 498-h do 10-30-52 2,388,379.41 1,873,861.59 1,873,861.59 361,000.64 1.512.860.95 110.293.86 11-13-52 4,751.372.63 4.751.372.63 1,021,468.54 3.729.904.09 587.470.51 651.421.05 651.421.05 91.393.28 560.027.77 27.356.07 5-27-53 5,830,688.06 5.830,688.06 990.712.96 4.839.975.10 728,906.27 1,478,108.76 1.478,108.76 139.670.94 1.338.437.82 53.027.11 6-24-53 5.828,568.75 5.828.568.75 990.352.90 4.838.215.85 725.414.10 1.597.810.21 1.597.810.21 150.981.85 1.446.628.36 57.264.46 880.662.84 880.662.84 228.973^24 651.689.60 108.251.07 102.690.79 102.690.79 19.795.24 82.895.55 6.570.45 46.533.61 46.533.61 12.098.82 34.434.79 5.251.40 11.400.20 11.400.20 2.197.53 9.202.67 719.71 Do Lulpaards V l e l Gold Mining Estate t Do Ltd. Lease, do do 498-| do 498-.I do 498-.1 do 498-K do 498-K do 498-1 do "•98-1 do '•98-M do 498-H do 498-N do 8- 5-53 130,903.61 130,903.61 34.035.08 96.868.53 15.512.85 "•98-0 do 8- 5-53 116.041.16 116.041.16 30,170.76 85r870.40 12,181.53 21,194.94 21,194.94 4.085.66 17.109.28 1.125.05 5,842,211.63 5.842.211.63 1.253.246.03 4.588.965.60 620.793.83 1,296.258.52 1.296.258.52 185.556.29 1.110.702.23 69.076.10 416,380.31 416,380.31 238,212.79 178,167.52 41,119.34 Mining Do The A f r i k a n d e r 498-H '•98-1 Gold Welkom G o l d M l n l n q C o . . Do P r e s i d e n t Steyn Gold Co.. Ltd. 10-30-52 Ltd. 8- 5-53 8- 5-53 ^98-0 Do Ltd. 498-p Oo E a s t Champ d ' O r G o l d M i n i n g Co., Ltd. Government G o l d M i n i n g A r e a s (Hodderfonteln) Consolidated, 498-P do 498-Q do 498-R do 1-25-54 638,200.05 638,200.05 180,661.99 457,538.06 62,414.96 498-S do 3- 4-54 3,601,062.29 3,601,062.29 859,219.99 2,741,842.30 333,591.56 223,386.81 223,386.81 30,771.95 192,614.86 9,691.85 4- 8-54 3,301,546.79 3.301,546.79 416,875.29 2,884,671.50 189.754.74 1,218,270.11 1,218,270.11 57,713.52 1.160.556.59 46.038.72 5- 6-54 287,509.46 287.509.46 37,685.75 249.823.71 19.536.95 283,624.92 283.624.92 13.449.98 270.174.94 10.138.07 Harmony G o l d M i n i n g C o . , Dominion Reefs (Klerksdorp) Do West D r l e f o n t e l n G o l d Co., Ltd. Ltd. Ltd. 498-S do 498-T do 8-13-53 10- 8-53 Mining 498-T do L t d . 498-U do 498-u do Do"** D o o r n f o n t e l n Gold Mining C o . . Do Vaal Reefs E x p l o r a t i o n Mining C o . . L t d . , do and S t t l f o n t e l n Gold Mining C o . . Do Ltd. 49&-V do 11- 4-54 4,109,942.55 4.309.942.55 358.979.21 3.950.963.34 327.846.11 498-w do 12-23-54 1,414,683.95 1,414.683.95 240,373.94 1.174.310.01 97.344.81 498-v do 167.145.90 167.145.90 15.798.85 151.397.05 4.789.54 Sea footnotes an page 30. 7- 5-56 U °"ES" L,U,T """' EXPORT-IMPORT BANK OP WASHINGTON STATEMENT OF LOANS A N D AUTHORIZED CREDITS C.EMTS AuTHO.IMD SZ^T^S "its" (E» I * ^ " <*<*,) D.K Amoun. C 1/ 2/ UNDISBURSED B.LANCI "BE--™ A™™. STATUS or LOANS fepiryD,* Eri'miJXk "if tft Sir Rcp»,d Ou„u„d,ng s u °" u riEvH£ /g ' R C IDIT L """T'°" AFRICA - continued Mining equipment, materials, 4q8-x and services 1-27-55 5 384,701.96 $ $ T B'uffelsfonteln Gold Mining Co., Ltd. Do Do 975.34 1,409,087.93 1,409,087.93 117,364.27 1,291,723.66 54,525.51 do 3-10-55 752,946.15 752,946.15 15,448.55 737,497.60 21,312.87 do 7- 2-57 126,584.82 126,584.82 9-29-55 5,004,719.96 5,004,719.96 WH-7 30,579.86 2- 3-55 ^«-7 1*98-1 f-A-f! 498-1 530 319,335.83 $ 29,738.60 do Total 65,366.13 $ 3,103.35 wa-Y **98-l -B-fl U98-1 -B-(2 498-1 -C $ 32,841.95 do Merrlesprult (Orange Free State) Hartebeestfonteln Gold Mining 384,701.96 32,841.95 !*9&-X Blyvoorultzlcht Gold Mining 126,584.82 2,458.19 416,847.85 4,587,872.11 248,727.68 305,615.04 32.73 217,207.20 5.050,063.51 145,452.90 10-17-57 305,615.04 305,615.04 do i 0-25-56 5,267,270.71 5,267,270.71 do 7- 9-57 2,016,010.43 1,448,180.00 12-31-58 567,830.43 567,830.43 10,080.43 7- 9-57 910,197.83 342,850.00 12-31-58 567,347.83 567,347.83 9,597.83 do Power f a c i l i t i e s for production of strategic materials 7-10-52 19.600,000.00 1.991.307.42 17.608.692.58 2,281.124.40 151.078.540.01 2,051,588.93 1,791.030.00 147.235,921.08 29.336,693.37 117,899.227.71 15,645,227.05 220,820.648.73 6,600,034.86 35.310.676.86 178,909,937.01 38,161,341.87 140,748.095.14 19,605.247.62 19,600.000.00 w w H o w o o S3 GO to to EXPORT-IMPORT BANK OF WASHINGTON STATEMENT OF LOANS A N D AUTHORIZED CREDITS c « Dm AUTrWIZlO r ,0-u..-.-„„»»-., ,b r.F!,NANCt° , h D.,, ) An».m 1/ 2/ UNDIS.UR.tD BALANCI "•tzzzsr- A™,.., December 3 1 , 1957 STATU, of LOAM S ^ Ex^D.* Dub bv Other. Ouulandiog lUp-d 'Er "ft^SttDT/c' L.MITATK*. ASIA Afqhanlstan: Royal iovernment o f Afqhanlstan 470 ssa Do C o n s t r u c t i o n o f dam and c a n a Helmand R i v e r V a l l e y development 11-23-49 4-29-54 Total China: Y u n g l l Chemical I n d u s . L t d . (Bank o f C h i n a and R e p u b l i c o f C h i n a ) Republic of China Construction of 21,000,000.00 1,200,000.00 16.000.000.00 4,243.750.00 396 12-31-58 21,000,000.00 $ 21.000.000.00 $ 4,112,240.98 17.300.000.00 $ 17.300.000.00 1.024.015.04 38,300,000.00 38,300,000.00 5.136.256.02 $ chemical 2-20-46 m $ 39,500,000.00 3-21-45 Do ? 1.200.000.00 360 Do s 18,500.000.00 395 do G e n e r a t i n g equipment and 14,565,745.91 1.434.254.09 1.216.000.00 218.254.09 375.419.41 4.243.750.00 2.372.690.00 1.871.060.00 630.613.65 2-20-46 2.600.000.00 59.052.45 2.540,947.55 2.540.947.55 190.048.96 2-20-46 8.800.000.00 517.780.83 8.282.219.17 8.282.219.17 281.871.12 Do 398 2-20-46 16.650.000.00 16.650.000.00 16,650,000.00 839.020.73 Do 399 3-U-46 1.500.000.00 1.500.000.00 1.500.000.00 61.976.99 Total India: National % 49,793,750.00 15.142.579.19 34.651.170.81 3,588,690.00 w H o 2,378,950.86 p For Rayon C o r p o r a t i o n , L t d . rayon t i r e cord plant I'll Sundatta Cotton-Seed Solvent extraction Utilisation, 60.000.00 Ex 60,000.00 1.860.000.00 1,860,000.00 equipment 3-29-57 Jlng 12-31-57 Machinery Co.) Total o Indonesia: Republic of Indonesia - U n a l l o t t e d 47? Do Do Do Development projects 2- 8-50 1.055.366.99 1.055.366,99 472-A 7-27-50 32.100.000.00 920.000.00 472-B development Dredging equipment, 472-C Railroad rehabilitation 472-D 9-21-50 260r000.00 10-19-50 6.700.000.00 383.000,00 17.100,000,00 11- 3-50 31.180.000.00 4.004.808.00 260.000.00 33.408.00 6-31-58 6.31J.OOO.O0 806.208.00 5.510.792.00 896,465.15 1,741.774,18 8-31-58 15.358.225.82 1,960,200.00 13,398,025.82 1,936,676.94 3,700.00 3-31-58 3.123.168.00 395.558.91 3-31-58 27.175.192.00 . 226,592.00 4.987.185.27 42.933.31 448,678.4B Do Electrification program Do 472-F Do 472-G F o r e s t development Do 472-H Marine Cement engines plant Do 472-1 Do 472-J A i r c r a f t See footnotes on page 30. proqram and e q u i p m e n t 1-25-51 3,585.700.00 3.582,000.00 458.832.00 7-26-51 978,933.01 978.933.01 125.688.00 853.245.01 104.504.71 3- 6-52 1,820.000.00 1.820.000.00 233.784.00 1.586.216.00 207.251.17 _6rj4=5J_ 14.700.000.00 2.887.132,44 3-31-58 11.812.867.56 1.203.480.00 10.609.387.56 551.990.65 7.500.000.00 7.500.000.00 3-31-58 5-17-56 178.855.58 EXPOtT-IMraftT BANK OF WASHMGTON STATEMENT OF LOANS A N D AUTHORIZED CREDITS CumAummD £z^r*££S I*?' (E.pJDTta'^.h..,) D« Arnou.. y UNOH.UUED BALANC* 2/ °-isffia- A»»m December 31, 1957. STATUI 0, LOAN. E,p^D«« l-SSuZk Rcp~l "W-Hr ^SSE*° Ouuunding R •g^^&ff 1 cCiim L.M.T.TOH ASIA - Indonesia - continued 472-K Do Republ c of Indonesia W-i 964 $ 11- 1-56 11-16-56 A i r c r a f t and spare parts (Convalr Division of General Dynamics Corp.) 9-30-58 6.477.000.00 6.477.OO0.00 9-30-58 6-30-58 1.781.000.00 1.781.000.00 101,781.000.00 24,448.973.61 11- 4-54 24.000.000.00 24.000.000.00 12-31-58 7-25-56 5.000.000.00 2.545.711.26 12-31-58 180,000.00 1-31-58 11-22-57 Total $ $ i 77.332.026.39 9.600.000.00 $ i 67.732,026.39 10,150,625.01 627.534,06 2.454.288.74 1.342.47 1.261.734.10 13,963.01 1,204.89 , 577 Diesel locomotives, parts. 577-B 2.454,288.74 0 w w H Diesel locomotives and 1 ran Techno Corp. (Bank Mel 11) The HI Hard Company, L t d . 577-C 884 Do 747-3 Do 7^7-6 Diesel White Co.. L t d . Diesel White Company, Ltd. (Bank Pars. Teheran, Iran) 663-3 643-1 Agricultural equipment (Allls-Chalmers Mfg. Co.) Truck chassis Diesel engines (Mack Trucks, I n c . ) Truck chassis and equipment (Mack Trucks, I n c . ) Diesel engines (Cummins Diesel Exp. Corp.) Motor truck chassis (The White Motor Co.) 7- 9-57 1-29-57 Earth moving equipment 580-1* (LeTourneau-Westlnqhouse Co.! 580-6 do Earth moving equipment £88-4 (Thew Shovel Co.) Material handling equipment 684-1 (Iowa Manufacturinq Co.) Do Do Do 263,943.08 6 056 92 7-19-56 21,000.00 4- i*-57 304,000.00 55.44 20,944.56 53,742.49 9-13-56 36,000.00 11,000.00 12-31-57 81.000.00 81.000.00 Total Ibrahim J . Saad t F t l s (Elle 1 . Saad. et a t ) 180,000.00 53.892,000.00 6,112.36 1-31-58 6.981.55 250.257.S1 250,257.51 25,000.00 25.000.00 36.000.00 7-31-58 37,731,544.76 16,154,342.88 105,321.37 16.049.021.51 611.247.41 5-18-56 160,000.00 5,039.74 154,960.26 46,689.16 108.271.10 7.351.74 12-20-56 50,000.00 2,244.34 47.755.66 7.959.31 39.796.35 1,341.09 5-18-56 50,000.00 10,085.05 4- 1-58 39.914.95 39.914.95 4-30-57 230.000.00 140.387.00 4-30-58 89.613.00 83.6i3.OO 490.000.00 Total 7,284.08 150.472.05 332,243.87 54,648.47 277.595.40 8,692.83 70.000.000.00 14.374.068.88 55.625.931.12 14.029.288.08 9.514.698.48 2.086.753.78 7.447.944.70 2.061.662.09 25.000.000.00 5.056.554.90 19.943.445.10 5.132.620.64 4.998.743.90 1.234.937.97 3.763.805.93 1.016.110.03 4S&-A 1-19-49 70.000.000.00 45&-B 3- 9-49 9.535.241.00 Do 4$8-C 3-16-49 25.000.000.00 Do 458-D 3-23-49 5.000.000.00 458-E 9- 7-49 5.464.757.00 5.464.757.00 1.095.560.89 4.369.196.11 968.342.87 45>F 10-26-49 20.000.000.00 20.000.000.00 3.817.297.73 16.182.702.27 3.608.374.83 114.998.199.38 27.665.174,15 107.333.025.23 Do x Do Total See footnotes on page 30. 135.000.000.00 1.256.10 1.800.62 2.118.889.98 w s a 3 o 50.000.00 Do 544.52 O 26.816.398.54 1 to EXPORT-IMPORT BANK O F W A S H I N G T O N 7. STATEMENT OF LOANS AND AUTHORIZED CREDITS Co Omu l ° — " " " ^ l ASIA - Caiorrj AuTOoniztD IB" (E.p~^.T™DMlraa) A-™, J/ 11 D.,c C STATU or LOAN. UNOUBUUID BALANCE TK£ES"- Amoun. Expiry Dale •SIM. Rrpaid ^ E I S R ! * " Ouuu„d,»g V s ^^£uc' continued Jao-nBank oF Jaun 712 Cotton Do ILL* do Do 815 do )o 815-* )o 928-/ )o 928-f 3o K a n s a l E l e c t r i c Power Company (Japan Development Bank) Do Tokyo E l e c t r i c 947 2Z5_ 903 Power Company 7«S Do Chubu E l e c t r i c 8-23-56 do Agricultural commodities Co. do Turbo g e n e r a t i n g u n i t ( I n t e r n a t i o n a l Gen. E l e c . C o . do $ 55.600.000.00 5 17.454.04 58,300.000.00 7 7 . 6 H .3** 1.700.000.00 7- 3.60O.OO0.O0 2-57 104.979.3s 4.400.000.00 8-23-56 do Cotton Turbo g e n e r a t i n g u n i t (Westlnghouse E l e c . l n t l . 944 Power 7-21-55 $ $ 3-31-58 48,968.137.45 3-31-58 60.000.000.00 60.000.000.00 7-31-58 3- 8-56 11.000.000.00 3-21-57 4.250.000.00 8.647.034.36 1-15-59 4.250.000.00 3-15-60 5.897.146.48 1-15-59 12-31-58 5-56 10.000.000.00 9-12-57 4.800.000.00 4.800.000.00 l2-n--i7 6,700.000.00 6,700.000.00 55.495.020.61 $ 4.382.545.96 21.082.548.86 1.695.706.07 1,488.496.43 111,400.000.00 2.000,000.00 $ 58,222,388.66 4.293.9' 2.0O0.000.0C $ 4,382.545.96 9-13-57 4- 55.495.020.61 102.261.11 2.111.503.57 27.419.44 37.139.839.80 766.311.69 1.593.444.96 640.85 2.111.503.57 62.431.862.55 62.431.862.55 352.965.64 352.965.64 1.946.98 2.102.853.52 2.102.853.52 6.26O.71 3,908.272.60 5.897.146.48 Company do Do Kyushu E l e c t r i c 97fl._ Power Company do Turbo g e n e r a t i n g 1-15-60 unit 5-15-59 II-I4-";; %? Tohoku E l e c t r i c Power Company 932 F u j T l r o n f. S t e e " C o . , L t d . ( I n d u s t r i a l Bank o f J a p a n ) J a p a n A i r L i n e s Company, L t d . (Japan Development Bank) Yawata Iron Pakistan Do *• S t e e l Co., International 9?5 Expansion of steel m i l l A i r c r a f t and spare p a r t s (Douglas A i r c r a f t C o . . I n c . ) 864 do 96<) EKDanslon o f 7-23-57 8" 1=51, M-21-56 5.000,000.00 7,300.000.00 7,300.000.00 10,300.000.00 10,300,000.00 12-31-59 7.7OO.OO0.00 7.7OO.OOO.OO JL2=^3=56_ 16.500.000.00 16.500,000.00 6-J0-6I J 2-13-57 26.000.000.00 26.000.000.00 12-31-60 6.315.427.30 Ltd. steel mill 661-1 6-23-55 900.000.00 32.828.8j 661-4 !J-21-56 1.017.000.00 1.309.80 423.967.000.00 4.738.477.33 Airlines 95? Government o f Turbo g e n e r a t i n g u n i t ( I n t e r n a t i o n a l Gen. E l e c . C o . , A i r c r a f t and spare (Lockheed A i r c r a f t parts Corp.) Aircraft parts 10- 9-57 2.828.000.00 10- 9-57 456.500.00 867.171.17 1.015.690.20 226.772.852.60 183.398.743.30 2.628.000.00 7-31-58 456.500.00 7-31-58 Pakistan) 954 and spare 3.284.500.00 9.056.926.77 578.114.19 289.056.98 169.281.70 846.408.50 41.098.66 22.720.78 81.809.772.43 110.645.897.64 2.570.791.16 36,666,328.42 L, U ,TAT,ON EXPORT-IMPORT BANK OF WASHINGTON 8. STATEMENT OF LOANS A N D AUTHORIZED CREDITS December " • ^ ^ (&»»«.-,-«,-., CR NEoMT 0 . * . ™ » D„« AmounH/ 2/ *V£ZSZ.™ ExpuyD,* A™»„. iKbJZk D »,bEiiSiik" Re,-ud Ouuundin* "€™° ^U'KJTOKTWC' 3 1 . 1957. L,M,TVnON ASIA - continued PhlVlDDines: National Power Corp. (Reoubllc of the Phi 1loclnes) L i t t o n Spinning & Weaving Mi l i s , Development of hydroelectric 1-31-52 $ 5'5 669 (Draper Corp.) 20,000.000.00 $ 14-28-55 1,048,000.00 8-18-55 1,800,000.00 7- 1-54 112.000.00 1.921.63 $ $ 364,6X16.94 4-30-58 112.000.00 6-30-58 2.214.473.85 $ 17,783,604.52 $ 683,393.06 54,763.85 628,629.21 34,348.06 1,800,000.00 202,500.00 1,597,500.00 125,806.90 63.000.00 35.^260.00 2,633.44 19.998.078.37 $ 2,416.594.69 Construction of t i r e and Goodrich International Rubber China Banking Corporation - $ 293,806.86 (Participation In (ext. of $180,000 l Purchased from (EiB by a Commerc al Bank for Its (own account and Isk. Machinery, equipment, 538-A Approved transactions: 538-A La Peria. Inc. 538-A -2 538-A Latex Products Co.. Inc. -3 538-A -4 Continental Hanufacturlna Corp. 538-A -5 538-A -6 538-A -7 538-A -8 Central Macaroni Co.. Inc. Philippine Bank of Commun1 cat Ions 538-B Bakery equipment Equipment f o r production of 2-15-56 99.000.00 740.00 6-30-58 98.260.00 9-14-56 90.000.00 462.66 6-30-58 89.537.34 1.136.48 Equipment for production of Equipment for production of thread 1-14-57 23.000.00 2-27-5? 34.000.00 10-30-57 83.000.00 6-30-58 21.863.52 164.96 1 6-30-58 33.835.04 33.835.04 82.034.83 6-30-58 965.17 965.17 407.68 80.04 81.366.18 Equipment for production of w w H 11-14-57 Equipment for mayonnaise plant Equipment for manufacture of 11-26-57 19.000.00 19.000.00 6-30-58 18,624.00 l_L2- 4=51. 22,000.00 22,000.00 6^0-58 22,000,00 7- 1-54 31.000.00 31.000.00 6-30-58 3- 2-55 81,000.00 O Machinery, equipment, a 538-B Equipment to enlarge 6-30-58 80.730.61 25.000.00 55,730.6„! 5,678.39 538-B Equipment for expansion of 538-B Power equipment for t e x t i l e 6-30-58 406.25 181^465,75 538-B Equipment for production of Mahogany Products i P h l l ) Inc. Equitable Banking Corporation - 538-B Equipment for veneer plant -5 Machinery, equipment, 538-C 87,434.24 11-25-57 35,000.00 35,000.00 34.535.00 6-30-58 > IP 7- 1-54 538-C -1 6-30-58 Machinery, equipment, Prudential Bank l Trust Company - 6-30-58 7- 1-54 538-D 538-D Equipment for production of -2 ribbons United Laboratories, Inc. 538-D Equipment for production of -3 538-D Equipment for processing and -4 538-D Equipment for production of 1-11-56 4- 4-57 95,000.00 11.431.91 41,000.00 See footnotes on page iu. 6-30-58 204,721.47 16,167.00 188,554.47 3,001.26 6-30-58 30.000.00 10,000.00 20j)00t00 1,784.32 9.166.66 83,645.8i 2,287.45 6-30-58 83.568.09 83,568.09 545.58 6-30-58 3.89JL72 94J..00 10,536.30 32.481.30 fcO CO EXPORT-IMPORT B A N K OF W A S H I N G T O N STATEMENT OF LOANS A N D 9. AUTHORIZED CREDITS December :C»?,T ""-—'"'>'—«-' NA N E D,K (Fxp<,n^, i „ p. ,"„,h^ , ASIA - P h U I o p i n e s - c o n t i n u e d R e h a b i l i t a t i o n Finance CorporationMachinery, equipment. Unallotted iiS=£ P h i l i p p i n e Bank o f Commerce do 538-F bja-F _Z^-bS4_ M-26-54 Equipment f o r e x p a n s i o n o f sugar r e f i n e r y 11-22-57 A m ou„, U 2 / S 2.000.000.00 ^SST"' E,pi,y D3,c w... 2.000,000.00 6-30-58 69.000.00 6-30-58 70.000.00 70,000.00 6-30-58 250.000.00 25O.0OO.O0 6-30-58 69.000.00 $ £ 1 ^ D i. b Ei6?i c " lUp^d $ $ S ' Ouuundin, $ &w- L " 3 1 . 1957. mn °" to 00 o J 69.246.15 538-F 1253H-F -1 Eastern T e x t i l e | l i l l S , I n c . S e c u r i t y Bank a n d T r u s t Company Unallotted Synthetic Textile Co., I n c . S.nlf> Machinery, - 12-12-57 111.000.00 111.000.00 6-30-58 2-28-56 219,000.00 219,000.00 6-30-58 445.06 6-30-58 90.554.94 73.148.42 538-G Manufacturers A l r c o n d l t l o n l n q equipment 538-G M a c h i n e r y , e q u i p m e n t , and Inc "2 538-G M a c h i n e r y American Wire & Republic o f the P h i l i p p i n e Banks C e n t r a l Bank o f Unallotted do equipment, 538-G 6-57 Cable Co. Philippines- Unallotted the P h i l i p p i n e s .9-17-56 42,000.00 2-25-57 91,000.00 98.ooo.oo 24.851.58 6-30-58 -J=_8=56_ 3.500.000.00 3.500.000.00 12-31-57 - 4.230.813.84 4.230.813.84 12-31-57 9-57 788,427.44 788.427.44 H-18-57 1.199,474.39 -3 777 2-27-57 Phi 1 1 p p l n e 42,000.00 42.000.00 744.11 90.554.94 and e q u i p m e n t f o r banks 216.65 8.511.32 o - do ILhh 8- 3-56 M 777-A Internationa. P. F l o r o Textile Mills. Inc. 10777^A -2 777-A i. S o n s . I n c . 1.199.474.39 J2=llr58. 12-31-58 a 11-22--57 777-A -4 777-A do 777-A M a c h i n e r y , do equipment, 12- 9-57 12-31-58 Irl70r410.00 12-11-57 256,544.57 do 12-20-57 26.590.21 26,590.21 do 12-20-57 29,000.00 29,000.00 12-31-58 do 12-20-57 48,350.00 48.350.00 12-31-58 do 12-20-57 31.843.00 31.843.00 12-31-58 " con- 777-A Marlkina Electric Cotabato L i q h t Pacific Pearl t Liqht Power Button -? Company 777-A -8 777-A Company Craft 777-A -10 777-A -11 York, Port Area Branch, Manila 777-* M a n u f a c t u r i n g Company Bank and T r u s t Company, P e o p l e s Bank a n d T r u s t Manila - U n a l l o t t e d See f o o t n o t e s o n page 12-31-58 12-31-57 - J 7 hi PhlllDDlne Commercial 12-31-58 S- Equipment f o r p r o c e s s i n g vegetable o i I s Economic development t h r o u g h 9-56 375.275.64 I0-29=5J_ 124.724.36 777-C 10-12-56 500.000.00 I22=C 10-12-56 500.000.00 375.275.64 6-30-58 124.724.36 6-30-58 Company, JO. 500.000.00 b-30-58 124T724.36 EXPORT-IMPORT BANK OF WASHINGTON 10. STATEMENT OF LOANS AND AUTHORIZED CREDITS )ecember 3 1 . 1Q57. U (C-™«.-,«-*-.l ASIA - Philippines Public - and P r i v a t e » ^ ° r X * ~ tfoU" D.« Entities 2/ - 777 F i r e s t o n e T i r e t Rubber Company, Philippines P h i l i p p i n e s Long D i s t a n c e T e l e p h o n e Company Economic development C o n s t r u c t i o n o f rubber factory 3- 8-56 $ 777-F C o n s t r u c t i o n 42,500.000.00 tire 777-E a n d t u b e 11-21-56 11-23-56 program "TSSESST" $ A™u„, $ 2.000.000.00 5.500.000.00 92,848.000.00 1.921.63 E.piry D.K R^ud ^EISRIIT EKblZk 'Sis? Ouuunding 1- 3-46 25.000.000.00 7-20-50 15.000.000.00 42.500,000.00 6-30-58 2.000.000.00 3-31-58 5.500.000.00 3-31-60 69.033.585.64 $ $ S S S L,M,T.TIO« S 23.812.492.73 2.686.582.68 15.000.000.00 10.000.000.00 10.000.000.00 10.232.483.60 4.767.516.40 1.364.000.00 3.403.516.40 997.991.72 40.000.000.00 25.232,483.60 14.767.516.40 11.364.000.00 3.403.516.40 2.997.991.72 2-10-56 105.000.00 2.629.38 102.370.62 78.750.00 8-16-51 1,071.340.00 31.510.00 4- 7-55 1.250.000.00 Total Saudi Amoun. 1 / continued 21.125.910.05 2.606.461.28 747.773.58 Anibia: 386 Public 2,000,000.00 works and development 48? Do Total w H SyriaWater w e l l drilling ( $ 5 2 , 5 0 0 p u r c h a s e d f r o m EIB by a ( C o m m e r c i a l Bank f ( a c c o u n t and r i s k . rigs 683-1 Thai l a n d : Klnqdom o f 504 Thailand Cargo v e s s e l s Steam and d i e s e l 646 S. 609-4 ( M a s s e y - H a r r l s - F e r q u s o n , 1 n c . ) Diesel R. M o t o r s Company. L t d . tractors 2-28-57 87.500.00 87.500.00 2,408,840.00 119.010.00 4,750.000.00 576 Etlbank (Republic o f Turkey) 628 378,120.00 661.710.00 176.564.76 125,000.00 1.125.000.00 60.539.84 2.289,830.00 503.120.00 1.786.710.00 237.104.60 1.799.858.17 357.936.96 4.235.000.00 1.270.500.00 2.964.500.00 233.702.35 3.208.000.00 4.764.358.17 591.639.31 578,003.75 140.664.059.10 402.504.162.22 54.110.285.13 40,738,529.79 i- e q u i p m e n t Total Do 2 o 1,039.830.00 1.250,000.00 generating S l a m Cement Company. L t d . o Grain s t o r a g e and h a n d l i n g e q u i p . ( C o l o m b i a n S t e e l Tank Co.) Coal w a s h i n g p l a n t (McNally P l t t s b u r q Mfq.Corp.) I I - 4-54 3-17-55 Total 1.012.641.83 9- 1-58 4.235.000.00 3.737.358.17 o 578.003.75 11-15-58 896.182.00 896.182.00 9.881.182.00 1.908.823.83 7.972.358.17 366,390,752.49 534.111.294.55 954,811.272.00 45.252,298.19 10-18-56 50,000.00 5,120.00 44,880.00 14,960.00 29,920.00 2.462.81 12-20-56 23.000.00 1.443.89 21.556.11 5.706.11 15.850.00 980.22 73.000.00 6.563.89 66.436.11 20.666.11 45.770.00 9.056,926.77 CANADA General Petroleums o f Canada, L t d . Do 849 Deep w e l 1 B73 and drillIng equipment rig 00 See f o o t n o t e s o EXPORT-IMPORT BANK O F W A S H I N G T O N II. STATEMENT OF LOANS AND AUTHORIZED CREDITS CJ.-T c < "™"«"»p-™««~) " • s . ^ " - ™ A™ U „, 1, D..c 2/ "•SESS.- Amoun, E.p.ryD,* D iSSbftk ", b Ei&Kr R C p*d s Ouuund..* 00 bo ysg^W L.M.T.T.ON EUROPE Austria: Creditanstalt-Bankvereln (Reoubllc of Austria) 647 Less: 647-A Brueder Teich ( O e s t e r r e l c h i s c h e s C r e d i t - l n s t l t u t . A . G.) 77B Credltanstalt-Bankverein, O e s t e r r e i c h i s c h e L a e n d e r b a n k . A . G . 895 and C r e d i t - l n s t l t u t , A . G . Less: Oesterrelchlsch-Alpine MontanqeselIschaft (Republic of Austria) 913 Do 913 lambacher F l a c h s s p l n n e r e i (Bank f u e r C b e r o e s t e r r e i c h und S a l z b u r q ) 956 Cotton 4- Advances by Cotton Advances by Steel-mill S 6,000^000.00 $ 2.425.644.38 3.574.355.62 34,031.50 $ $ $ 2.895,200.75 34,031.50 $ 645.123.37 $ $ $ 1.653,848.23 67.780.60 i73.78O.OO 3.308.96 133.387.32 15.080.42 118.306.90 4,417.268.52 229.692.12 4.187.576.40 480.27 2.004.782.79 6.015.204.63 71.569.83 1,886,475.89 $ aluminum 3-15-56 1,000,000.00 826,220.00 4-15-58 173,780.00 2-21-57 8j000,000.00 500.000.00 7,500,000.00 3,449,344.16 4-30-58 4,550,655.84 244.772.54 4.305.883.30 4-25-57 20,000,000.00 20,000,000.00 10-31-57 8,150.000.00 8,150,000.00 7-15-62 10-24-57 16.500.00 16.500.00 5-31-58 participants equipment do Text 1le 7-55 participant Equipment f o r foil plant machinery 40,240,855.62 Total 3.194,116.70 34,031.50 72r.890.00 7-15-62 w 7.374,864.05 32,186,836.70 645,123.37 721.890.00 H O BelgiumKingdom o f Belgium 383 U. S . p r o d u c t s ( l e n d - l e a s e termination) U. S . goods a n d s e r v i c e s 384 Van T h u y n e ' s N.V. Concrete 9-11-45 55.000.000.00 55.000.000.00 22.000.096.00 32.999.904.00 _9=l'^45_ 45.000.000.00 45.000.000.00 19.500,000.00 25.500.000.00 100,000.000.00 41,500,096.00 58.499,904.00 20.000,000.00 8.666.666.72 11.333.333.28 12.725,513.70 b l o c k machine and 11-29-57 886-1 38.000.00 38.000.00 100,038,000.00 38,000.00 •-.11=58, o w Denmark: U. S . goods and services 7-13-45 370 Ceorg E. Automatic Mathiasen, steam 20,000.000.00 4.343.141.63 generators 7-24-56 4.500.00 886.50 3.613.50 3.613.50 151.47 Do 744-4 do 9-13-56 4.300.00 97.00 4,203.00 4.203.00 170.41 Do 744-5 do 11-16-56 7.800.00 57.75 7.742.25 7,742.25 302.08 Do 744-6 do 5-10-57 6.300.00 81.00 6.219.00 3,109.50 3.109.50 143.89 Do 71*4-7 do 6-14-57 4.000.00 44.50 3.955.50 1,977.75 1.977.75 94.21 Do 744-8 8- 1-57 3.350.00 37.00 3.313.00 744-3 do Steam g e n e r a t o r s , h e a t e r s , t 7 4 4 - 9 d y n a m o m e t e r s ( C l a y t o n M f q . C o . j) Do 8-22-57 Total F i n n i s h American Trading 20.000.00 3.656.00 20.050.250.00 1.203.75 100.000.000.00 7.596.783.99 7 CQ6 Tfl* QO 3.656.00 9-30-58 3.313.00 16.344.00 20.045.390.25 16.344.00 20.000.00 8.687,312.72 11.358.077.53 4.344,003.69 92.403.216.01 19.403.216.01 73.000.000.00 31.814.624.20 94.903.216.01 21.383.216.01 73.520.000.00 32,433.621.27 Corp. 2,500.000.00 421 Reconstruction 451 618,997.07 and 11- 3-48 > EXPORT-IMPORT BANK Of WASHINGTON 12. STATEMENT O F L O A N S A N D AUTHORIZED CREDITS C VS" %ZZLTJ2^ us ,Clr£!Z' c " D,, c A-noun. 1 / 2/ U. S. products (lend-lease 9-11-45 $ 550.000.000.00 IB? U. S. goods and services 404 Do Soclete Industrielle de Hecanique ^-SSKS.™ $ Amoun. Exp^D,* $ $ 6-19-46 650.000.000.00 9- 6-56 20,000^000.00 6.000.000.00 14.000,000.00 8.381,212.19 2.514.363.68 5.866,848.51 6-30-58 46.000.000.00 46.000.000.00 6-30-61 1.260.000.000.00 51.866.848.51 ^EliS!*" E^mb^k 550.000.000.00 $ )ecember 31 , 1957. R e p*d ^S?S'D Ouuuu.ding Uc u " ^3" L T ON """ $ 206.437.500.00 $ 343.562.500.00 $ 117.067.723.75 650.000.000-.00 156.390.000.00 493.610.000.00 184.486.406.24 11.618.787.81 3.485.636.32 8.133.151.49 6.393.05 1.366.76 5.026.29 845.305.651.49 301.559,156.28 Equipment for automobile «?V Le : " Advance by participants 11,618,787.81 3.485.636.32 8.133,151.49 Jet a i r c r a f t , spare engines Compagnle Natlopale Air France 9-12-57 945 Aircraft) Total GHubschrauber-Vertrlebs G.ra.b.H. 1.208.133.151.49 362.827,500.00 123.595.89 61.798.14 Helicopters and spare parts 404.11 759 12- 8-55 124.000.00 £9.0- 6-28-56 10,000.000.00 1-18-57 4.000.000.00 It.000.000.00 14.124,000.00 4,000,404.11 61.797.75 7.826.51 1,975,524.00 5,332.49 61,798.14 2.037.321.75 13.159.00 August Thyssen-Huette, A. G. Hanlmex, Handelsgesel1schaft fur Import and Export. N.B.H. 882 Agricultural products Total 8.024.476.00 6-30-59 8,024,476.00 1.975.524.00 2,099,119.89 O Greece: 1- 9-46 25.000.000.00 10,436.687.39 S89 12-16-54 625.000.00 37.12 ssi 11- 8-56 390 Plralkl-Patralkl Industrie C. Pavlou S- Company U. S. products and services Text!le machinery Ex enslon per ding 5.327.50 11-30-57 115.000.00 25.740.000.00 Total 14,563.312.61 10.436,724.51 5.327.50 2.839.843.78 11.723.468.83 3.911.008.II 624.962.88 312.481.44 312.481.44 19.678.44 624.962.88 3.152.325.22 12.145.622.77 3 109.672.50 109.672.50 14,672,985.11 w 3.930.686.55 O Ir-Lnd- CO Rafmaansveita Reykjavl 579-4 11- 5-57 115.000.00 10- 1-47 3,150.000.00 115.000.00 2-15-59 I s t l t u t o Mobil I are Itallano 417-0 42.660.55 3.107.339.45 2.520.000.00 587.339.45 618.877.64 Shlpyards149,075.36 Do 417-F Shlpyards-Cantlerl Rtuniti 10- 1-47 2.000.000.00 2.000.000.00 1.600.000.00 400.000.00 Do 417-0 10- 1-47 500.000.00 500.000.00 400.000.00 100,000.00 101,335.33 Do 417-H 10-23-47 9.000.000.00 9,000,000.00 7,200,000.00 1.800,000.00 1,909,334.17 417-1 10-23-47 3,634.661.04 3.634,661.04 2,910,661.04 724,000.00 1,350.000.00 1.350.000.00 1,080,000.00 1,300.000.00 1.300.000.00 1.040,000.00 260,000.00 263.847.21 3.000.000.00 2.400.000.00 600.000.00 586.326.26 Do « Do See footnotes on page 30. 417-L 417-M 10-23-47 355,635.88 755,095.19 ! 272,545.84 to 00 CO E X P O t M M P O t T SANK OF WASHINGTON 13. STATEMENT OF LOANS A N D AUTHORIZED CREDITS Cwi>m AUTBO.II£ D °fir i C ^ ^ ^ ^ o ^ , EUROPE - Italv - ,E,po^" A N C I D u««.) D..c A — J / UNDUUUID BALAN<3 C J/ "B!£5S."» Expiry.** An*.* December 3 1 . 1 9 5 7 . STATU, or LOAM fcSJbXk D Rcpud «bEiBR»r OuUUndia, SF UC 1$KEH£" to 00 L,U,TATK>N continued 4 1 7 - V Small Do C 417-Y " n d e a u l ^ n t Do 528 Less: metallurgical M a c h i n e r y and Industry m a t e r l S , S $ $ $ 23.391.781.19 18.713.581.19 $ 4.678.200.00 $ 584.906.33 584.906.33 467.946.33 116.960.00 119.732.86 5-49 15.919.872.70 15.919.872.70 12.736.072.70 3.183.800.00 2.424.168.57 6-12-52 4.720.500.00 1.180.125.00 3.540.375.00 3.537.697.54 2.478.262.50 1.059.435.04 309.502.48 1,563,279.23 41,592.35 10-15-U7 417-1 Do 10-23-47 1- S 23.391.781.19 2.677.46 $ 4.401.763.36 special 662-A Italian Industrial firms- 66?-C 2,000,000.00 £62=0. 5.000,000.00 Machinery 6-30-58 Ex : e n s l o n pe 7-31-57 and e q u i p m e n t ( i f f I t H t o Mpbl1lare FIAT. S.p.A. 87? w l i T - ^ n o S n t l ^ s ' o ? " . A i r c r a f t and s p a r e p a r t s A i r c r a f t and s p a r e p a r t s (Lockheed A i r c r a f t C o r p . ) Equipment f o r a u t o m o b i l e L e s s : Advance by Equipment Do 1 755 Itallano) w 1-31-58 6 6 2 - F M a c h i n e t o o l s and e q u i p m e n t - 1,986,278.66 5.000.000.00 662-E Istltuto Mobillare Itallano A l i t a l i a - LI nee A e r e e I t a l l a n e Soclfita per Azlonl ( I s t l t u t o Moblllare Itallano) 1.947.065.96 participants 5-18-56 2,500.000.00 936.720.77 6-30-58 12-18-56 1.500.000.00 1.500.000.00 6-30-58 11-10-55 6.355,000.00 4.749.555.75 6-30-58 7-12-56 6.200.000.00 1.563.279.23 O w 1,605.444.25 M F 6.200.000.00 — 9 - 1 3 - 5 6 . __.JJi.JlBQAS2*00_ 1,000.000.00 9.000,000.00 2,609.037.39 260,904.31 2.348.133.08 6-lQ-5_8 5.000.000.00 5.000.000.00 3-15-59 739,095.69 6.651.866.92 7,390.962.61 82.465.79 739.095.69 6.651.866.92 82.465.79 f o r automobile 911 7-2J-57 116.226.596.26 6.245.411.23 15.533.572.65 94.447.612.38 58,430.243.76 o w 36.017.368.62 Netherlands: U. S. products Kinqdom o f Netherlands (lend-lease 380 9-11-45 50.000.000.00 50.000.000.00 19,732,661.00 9-11-45 50.000.000.00 50.000.000.00 21.111.333.38 100.000,000.00 100,000,000.00 4l.06s.994.18 U . S . goods and s e r v i c e s Do 381 Total 26.666.666.62 Norway U . S . goods and services 7-13-45 369 S. Hammer A / S (Den N o r s k e C r e d l t b a n k ) 848 T h e r m o p l a s t i c e x t r u d i n g mach (Modern P l a s t i c M a c h . C o r p . ) 10-18-56 Total 50.000,000.00 4.200.00 49.05 4.150.95 518.87 1.632.08 707.64 50.004,200.00 49.05 50.004.150.95 25.000.518.85 25.003.632.10 10,824.440.53 40,000,000.00 9.624.000.00 30.376.000.00 10.865.751.99 Poland: Republ I c o f Poland <402 See footnotes on p Coal a c a r s and locomotives 4-24-46 40,000,000.00 14. EXPOCT-iMFORT SANK OF WASHINGTON STATEMENT sn«°^s C "NloD" (Ei F.NANCD ^ ) Amount/ D.K 2/ C OF LOANS A N D AUTHORIZED CREDITS "ESJ£SSS. A N D A™., E.pio.n.* December 31. 1957. Dbb by Othtn iSSJbSk Rep^d Ouuundin,, 1 ™ "=F I L.M.T.TIO, EUROPE - continued Portuqal: Transportes Aereos Portugueses, S.A.R.L. 56, A i r c r a f t and spare parts (Lockheed A i r c r a f t Corp.) 6- 3-54 $ 1,931.000.00 $ 242.00 $ $ 1.930,758.00 $ $ 1.139,686.00 $ 791.072.00 $ 163.206.59 $ Spain: Companla Electrlca de Langreo S. A. Hidroelectrtca Espanola Manufactures Metal leas Hadrilenas S. A. [Spanish Banks) Junta Je Enerqla Nuclear Red Naclonal de los Ferrocarr!les Esparto es (RENFE) (Government of Spain) Thermal power unit (Westinghouse Elec. I n t l . et al) Thermal power units ( I n t l . Gen. Elec. Co.) participants Less; Advances by 568 7-15-54 1,250,000.00 218,891.89 1,031,108.11 70S 7- 7-55 8,500,000.00 1.469.356.25 7.030.643.75 12,120.00 7,018,523.75 10-14-54 1,200,000.00 960.000.00 240,000.00 149,624.00 1-31-58 385jOOO.OO 43,475.59 8-21-58 10-17-57 8,000.000.00 8,000.000.00 10- 1-59 9-15-55 888.000.00 W* 844 i>!>!) Steel m i l l equipment (Westinghouse Elec. I n t l . et al) Advances by participants Atomic rese h r actor Diesel locomotives, t o o l s , and equipment 10-11-56 ,_ 48,965.24 90,376.00 31,631.60 341,524.41 982,142.87 224.42 7.018,523.75 368,187.01 58.744.1*0 2.246.85 341.524.41 4,240.32 760.770.00 38.864.15 43.475.59 Steam boilers and equipment 579-1 429.00 887.571.00 141.65 582.358.35 126.801.00 w w H O Boiler unit and equipment Empresa Naclonal Calvo Sotelo de 579-1 11-17-55 26.46l.l4 9.861.085.62 w 248.994.87 r—I <:-. rf.n- o Tournapul1 Unlted Kingdom: Dollar requirements for Government of the United Klnqdom 874 12-21-56 500.000.000.00 Wt 8-10-50 55.000.000.00 2.444.356.045.63 See footnotes on page 30. 250,000.000.00 55.000.000.00 28.556.432.68 365.966.816.95 2,048.472.333.75 1.360,462.25 to 9,750.000.00 45.250,000.00 12.237.293.75 586.876.468.74 1.462.956.327.26 440.438.095.25 765.365.59 00 Ox E X P O f t T - I M K M T BANK O F W A S H I N G T O N STATEMENT OF LOANS A N D AUTHORIZED CREDITS Oecember (0 C „*,«»*«.> iTT <b,J^T£Li««.) D.« 9-18-46 495 Harbor barges R e f i n a n c e purchase o f e q u i p , mfg. In U. S . Equipment f o r p r o d u c t i o n o f t u n g s t e n and s u l p h u r S26 Steel A,™.,!/ 2/ C "BEB5."- * ™ « Expiry Dale Rep«i ^EISSUT iSSbfZk Ouuundin, "(TSKjSSW %£HF 1\. 15. to 1957. 00 L,M,™,ON LATIN AMERICA Argentina: A g e n d a de T r a n s p o r t e s Moore-Mc Cormack, S . A . ( M - H c C . L i n e s , I n c . ) 4 0 8 C o n s o r t i u m o f A r q e n t l n e banks Socledad H l n e r a A r g e n t i n a , S. A . ( C e n t r a l Bank o f A r q e n t l n a ) Socledad M i x t a S l d e r u r g l a Government o f A r q e n t l n a Government o f A r g e n t i n a Private Sector - Unallotted Celulosa A r g e n t i n a , S. A . (Banco I n d u s t r i a l de l a R e p u b l l c a A r g e n t na) 477 $ 2I0.000.0C S 5-17-50 1 2 5 , 0 0 0 000 00 4-26-51 5 , 0 0 0 000 0 0 3-10-55 5.214.80 $ $ 28.530.126.87 204,785.20 $ $ 194.545.94 $ 10.239.26 $ 38.587.949.28 57,881,923.85 20,409.584.33 5,000,000.00 3.125.000.00 1,875.000.00 679,090.73 4.585.51 6 0 , 0 0 0 000 00 56,723,372.14 12-31-60 3.276,627.86 3,276.627.86 5-56 8 5 . 0 0 0 000 00 80.372.275,00 6-30-58 4.627,725.00 4.627.725.00 9-10-56 B?6-B Equipment and s e r v i c e s 8 2 6 - B Equipment f o r p u l p and p a p e r makinq f a c i l i t i e s -1 12-20-57 8 , 5 0 0 000 00 8.500.000.00 6 . 5 0 0 000 00 mill equipment 326-A T r a n s p o r t a t i o n equipment 11- 2 9 0 . 2 1 0 000 0 0 6.5OO.0OO.00 28.535.341.67 42.342.85 96,469,873.13 * 17,727.075.33 26.348.355.00 12-31-59 152.095.647.14 109.579,011.19 41.907.495.22 67.671.515.97 3.928.900.00 4.571.100.00 2.570.622.48 21.135.603.42 44.075.430.33 w Bolivia: Corp. B o l i v i a n o Equipment de Fomento for petroleum Vf Vi Do 467 Highway construction do Cochabamba-Santa 3- 6-42 8,500.000.00 8.500.000.00 3- 6-42 10.320.000.00 10.320.000.00 1.319.411.80 9.000.588.20 3.864.114.80 10-28-49 18.400.000.00 18.400.000.00 2.364.713.10 16.035.286.90 3.339.240.03 3-31-55 4.700.000.00 4.674.108.61 300.541.48 a w H Cruz- Wi 25.891.39 2-28-58 4.674.108.61 Trucks 7-28-55 718 T r u c k s and 36.000.00 805.31 35.194.69 23.463.13 11.731.56 2.326.76 192.000.00 425.40 191.574.60 95.787.30 95.787.30 11.296.13 42,120.877.90 7.732.275.33 34.388.602.57 10.088.141.68 trailers 9- 1-55 25.891.39 42,148.000.00 O Br.,11C l a . S l d e r u r g l c a Maciona1-Banco do B r a s l l ( R e p u b l i c o f B r a z i l ) Do 6-19-40 31.092.558.18 do 6-19-40 13,907.441.82 481 do 7-20-50 25.000.000.00 770 do 2- 35.000.000.00 269 ?69 Cla. V a l e do R i o D o c e , S . A . Cla. V a l e do R i o D o c e , S . A . Cla. V a l e do R i o D o c e , S . A . Cla. Brasll Cla. Central Steel ml 11 e q u i p m e n t 13,907.441.82 25.000.000.00 --..JlJ9Z*2ZL-3i 6-30-59 1-27-45 358 R a i l w a y and m i n i n g 2-19-47 7.500.000.00 6-16-55 3.920.000.00 22.100.703.12 5.571.491.04 1.027.939.68 8.056.011.72 2.062.311.25 22.937.688.75 4.024.585.90 2.707.742.05 9.860.135.98 2.707.742.05 5.000.000.00 1.431.527.27 3.568.472.73 456-A 12-22-48 2.336.000.00 456^C 12-22-48 121.839.00 456-D 12-22-48 158.149.00 12-22-48 147.000.00 12-22-48 1.013.012.00 7.499.876.32 3.250.000.00 4.249.876.32 2.518.165.79 435.555.68 2.082.610.II 133.723.36 124.464.18 2.211.535.82 1.782.368.00 429.167.82 528.659.66 3,084.73 118.754.27 92.963.16 25.791.11 24.984.77 158.149.00 120.667.69 37.481.31 35.287.78 m.712.22 111.712.22 626.382.74 386.629.26 309.286.63 123.68 Ex e n s I o n per 1.401.834.21 12-31-57 E x p a n s i o n o f m i n i n g and 694 8.991.855.06 12.879.502.14 materials 418 de E n e r g l a 1-56 31.092,558.18 1.725.630.16 Eletrlca Brasllelra de F o r c e Cla. F o r c a e L u z de M l n a s Cla. F o r c a e Luz M o r d e s t e do Urals Cla. Energla E l e t r l c a ViM do 36.913.35 21.246.26 Rio 456-1 See f o o t n o t e s on page 3 0 . 77.342.63 80.464.97 EXPORT-IMPORT BANK OF WASHINGTON STATEMENT SSZ.'T^SS LATIN AMIRICA - Brazil - continued Cla. Paullsta de Forca e Luz (B.E.P. Co.) Do Cla. Forca e Luz do Parana (B.E.P. Co.) Cla. Bras 1 l e i r a de Energia Eletrica (B.E.P. Co.) Cla. Forca e Luz de Hinas Gerals (B.E.P Co.) Cla. Forca e Luz de Nordeste do Brasll (B.E.P. Co.) Cla. Energia E l e t r i c a da Behfa (B.E.P. Co.) Cla. Central Brasllelra de Forca liletrlca (B.E.P. Co.) Cla. Paullsta de Estradas C, NloU" (E. ^,NANC*D.h C ) ' 456-1 Electric power development 52V# do A^KHiB, D.« 12-22-48 $ 1 / 2/ 3.179.000.00 $ 6- 5-52 29.938.000.00 "8K£SS3.*,,D A™™, , 152,476.21 E,p.ry D. K $ $ 930,000.00 29,008,000.00 $ 2,425,577.00 $ 600,946.79 $ 'Sff 726.907.22 1,409,550.00 27,598,450.00 3.891,705.01 do 6- 5-52 4,357.000.00 161,000.00 3-31-58 4,196,000.00 182,850.00 4,013,150.00 450,096.24 6- 5-52 3,137,000.00 159,000.00 3-31-58 2,978,000.00 138,250.00 2,839,750.00 300,247.56 523-C do 6- 5-52 1,593,000.00 314,000.00 3-31-58 1,279,000.00 59,000.00 1,220,000.00 141,936.05 523-E do 6- 5-52 504.000.00 100,000.00 3-31-58 404,000.00 20,200.00 383,800.00 72,897.89 S23-F do 6- 5-52 855.000.00 228.000.00 3-31-58 627.OQ0.00 25,950.00 601,050.00 71.451.43 do 6- 5-52 756.000.00 108.000.00 3-31-58 6- 5-52 7.000.000.00 523-£ 902 2\\ Import of tropical products 409 267.40 8,364,392.64 648,000.00 31,250.00 616.750.00 72.904.83 6.999.732.60 1,000,792.24 5,998,940.36 1,305.260.55 4,435,607.36 4,435,607.36 3-21-57 12,800.000.00 6-12-39 1.117.049.28 1.117.049.28 989.069.09 9-18-46 115.000.00 115.000.00 115.000.00 10-26-49 3.806.200.00 3.806.200.06 3.401.150.23 405.049.77 633.741.02 9- 4-52 71,340,795.03 16.280.987.60 55,340.795.03 16.28O.987.6O 39,059.807.43 7.078.548.78 7.078.548.78 48.262.246.25 16.280.987.60 31.981.258.65 5.901.689.51 1,980.263.22 3.921.426.29 2,181,152.68 1.255.943.38 925,209.30 211,449.06 12-15-58 127.980.19 " C M U ^ W C L.M,TvnoN s 8.357,203.55 5.474.48 W H 27.449.99 Ferries and converted LST O Equipment for cement plant Production of manganese ore 533 Less: Credit c e r t i f i e d by D.M.P.A. Cla. Metalurglca Barbara (Banco 536 Companhta Docas de Santos (Banco Nac. do Des. Econ.) Admlnlstracao do Porto Rio de Janeiro (Banco Nac. do Des.Econ.) Banco Naclonal do Desenvolvimento $ Outturn, do 466 Banco Naclonal do Desenvolvimento EconomIco-Una 1 lotted Banco Naclonal do Desenvolvimento Rq-id .'t b ElJRuk" 523-t Clmento Aratu, S.A. (Cla. Nac. de Industrie e Comerelo de Hlnerlos S. A. 3,026,523.79 3-31-58 Diesel locomotives, and Do Di EXb^k December 3 1 . 1957. 523-C f24 Hoore-HcCormack (Havegacao) S. A. (M-McC. Lines. I n c . ) Empress I n t l . de Transportes Ltda. 16. OF LOANS AND AUTHORIZED CREDITS 611 Cast Iron pipe plant Equipment for port improvements 3,847.32 10-10-52 2,185,000.00 7-19-56 17,786,000.00 17,786,000.00 6-30-60 811-A do 4-U-57 4,875,000.00 4,875,000.00 6-30-60 811-8 do 4-15-57 875,000.00 875,000.00 6-30-60 811-C do 4-15-57 1,464,000.00 1.464.C00.00 6-30-60 p Q O GO 1,241.47 Do State of Mlnas Gerals ( N a t l . Treasure of Brazil) ??7 529 541 Do Agricultural equipment Agricultural equipment, 606 Refinance purchase of equipment mfq. In U. S. do 10-10-52 18,000.000.00 17.963.641.56 36.358.44 16.530.98 15,430,000.00 2,533.641.56 1,306,858.52 7- 3-52 5.000.000.00 4,983,469.02 1,000,000.00 3,983.469.02 147,216.93 2-21-53 300.000.000.00 300,000,000.00 140,824,832.07 159.175.167.93 37.945.578.85 75.000.000.00 45.000,000.00 2- 9-55 30.000.000.00 45.000,000.00 4.694.794.52 38.000.000.00 30.122.501.52 7.877.498.48 8.661.790.99 3.109.218.75 2.202.363.26 906.855.49 238.959.93 2.444.437.50 23.437.50 16.293.67 Lloyd Bras 1 leiro S. A. Empresa de Vlacao Rio S. A. Empresa de Vlacao Rto ^76 551 Slfi 9-11-45 A i r c r a f t and spare parts (Lockheed A i r c r a f t Corp.) 10-30-53 3.110.000.00 781.25 8-30-56 Railway equipment Equipment for railroad Do* 1 - 5-56 764 Less: Advances by participants Servlcos Aereos Cruzeiro do Sul 4.457.283.29 470.676.58 3.986.606.71 470.676.58 19.154.323.42 5-15-58 15.167.716.71 15,167.716.71 15.167.716.71 15.167.716.71 574.950.17 583.111.98 82.739.74 3.218.094.54 A i r c r a f t and spare parts 561 5-25-54 I.g4-;,noo.oo . * » <i i.oirt^nA.ta 1.360.594.71 to GO EXPORT-IMPORT BANK O F W A S H I N G T O N 17. STATEMENT OF LOANS AND AUTHORIZED CREDITS December 3 1 . "ST <C«™,„„ „ , » „ * „ , (Ex *»*»<*» ^^ D.« Styrene (basic p l a s t i c materials) plant C l a . B r a s l l e l r a de E s t l r e n o ( I n d u s t r l a Pneumatlcos F i r e s t o n e , S. A. et a l ) 544 Fonqra P r o d u t o s Q u l m l c o s , S . 586 Equipment and 597 S t e e l m i l l machinery & e q u i p . (R.W.Hebard t A s s o c i a t e s , I n c . Siderurqlca Belqo-Mlneira, A. S. A. Wire drawing materials Cla. Grain 336 Do (Banco Sul A m e r i c a n o do B r a z i l ) 781 C e n t r a l s E l e t r l c a s de M l n a s G a r a l s S , A . (Banco N a c . do O e s . E c o n . ) 807 Government o f B r a z i l 810 C l a . H l d r o - E l e t r l c a do Sao F r a n c i s c c S . A . (Banco N a c . do D e s . E c o n . ) 81? F a b r l c a N a c i o n a l de V a g o e s , S . A . 8|4 C i a . N a c . de Navegacao C o s t e I r a ?°t0rbUS"ll storage A. A. 857 Ollnda, S. 1 Improvements Reactivation of Do Acos VI H a r e s , S . A . (Banco N a c i o n a l do D e s e n v o l v l m e n t o ) S o c . T e c n i c a de F u n d i c o e s G e r a i s , S . A . (Banco N a c . do D e s . E c o n . ) C i a . B r a s l l e l r a de M a q u i n a r l a 922 Cla. Distrlbuidora A i r c r a f t and s p a r e p a r t s (Douqlas A i r c r a f t Co.) Semi-trailers construction $ 754.000.00 3-31-59 392.63 39,169.83 129.000.00 287.33 iSMl. $ 1,746.000.00 "S&ISr $ 5 $ 299.607.37 691,270.17 322.588.00 'S£ D Ouuundiag R^d 1.746.000.00 $ 173.869.83 299.607.37 14.5M.47 368,682.17 20.818.91 940 5-56 128.712.67 40,000.00 400,000.00 42 1-31-58 21.452.10 360,000.00 107.260.57 7.519.13 360.000.00 IO.089.86 6-57 69,600.00 3-22-56 1 , 2 5 0 , 0 0 0 00 7-13-56 1 1 , 4 0 0 , 0 0 0 00 7-19-56 1 0 0 . 0 0 0 . 0 0 0 00 7-19-56 1 5 . 0 0 0 . 0 0 0 00 69,600.00 12-31-57 6,613.962.16 1-31-60 1,250,000.00 1,250,000.00 15.^17.10 4.786.037.84 4.786.037.84 45.982.80 14.500,000.00 J-U-61 500.000.00 500.000.00 1.746.066.82 1.746.066.82 8-56 2 . 7 5 0 . 0 0 0 00 2,140.549.43 A g r i c u l t u r a l equipment (Allls-Chalmers Mfq. Co.) and Des. Econ.) de M a t e r i a l Ferro- Equipment 11-15-56 6 . 9 0 0 , 0 0 0 00 376,558.25 4-26-57 1 0 , 0 0 0 , 0 0 0 00 10,000,000.00 I 12-31-59 5-31-57 3 , 7 5 4 , 0 0 0 00 3 , 7 5 4 , 0 0 0 00 6-30-59 5-31-57 5 4 1 , 0 0 0 00 5 4 1 , 0 0 0 00 6-30-59 _J_-3J^58 265.700.57 6,068.44 6-30-58 6,523,441.75 821,885.11 5.701.556.64 160.707.67 8-22-57 2 , 3 2 0 , 0 0 0 00 2 , 3 2 0 , 0 0 0 00 12-31-58 9- 5-57 2,558.000 00 2 , 5 5 8 , 0 0 0 00 U-15-59 10- 9-57 6 6 , 3 0 0 00 6 6 . 3 0 0 00 2-28-58 10- 9-57 3 2 . 1 0 0 00 3 2 . 1 0 0 00 3-31-58 11-29-57 2 . 4 0 0 00 2.400 00 5-31-58 of A. 973 Celubagaco I n d u s t r l a e Comerelo, S . A . (Banco N a c . do D e s . E c o n . ) Companhia E l e t r l c a C a l u a A-2 See footnotes on page 3 0 . do [Tagasse paper p u l p p l a n t ( N o b l e & Wood M a c h i n e C o . ) a 12-31-57 5,320,000.00 5,320,000.00 1-15-60 12-23-55 540,000.00 89,027.00 9-30-58 o 85 I 2 3 U L L Cobrasma-Rockwe 11 E l x o s S . P 2.199.710.00 spare for manufacture w H o 343.750.00 A.) Convair a i r c r a f t 2.883.291.31 604.326.55 609.450.57 12-31-58 Brasllelra $ 100,000.000.00 _ i 2 - J i - 6 0 Convair) Cla. L,M.T«T,0» 83.986.49 57 Agro-Industrial S e r v t c o s A e r e o s C r u z e i r o do S u l , GwKjrmJDjEyS' of A i r c r a f t and s p a r e p a r t s (Douglas A i r c r a f t C o . , I n c . ) S p a r e e n g i n e s and p a r t s ( u n i t e d A i r c r a f t E x p o r t Corp For e x p a n s i o n o f s t e e l 965 de Sao P a u l o , S . $ E,p.^D,K merchant 943 951 8- 11- for Amoun. 730,440.00 17 55 E x p a n s i o n o f power f a c i l i t i e s M a n u f a c t u r e o f t r u c k s and Equipment do'SraslMNaH^TreasTof B r a z i l ) 914 Lolde Aereo N a c i o n a l , S . A . 921 (Banco N a c . do D e s . E c o n . ) 2,500,000.00 ^"SP^^V"0 elevators(Black 856 P a n a l r do B r a s l l , S . Fosforlta 1-27-55 2-24-55 (Allls-Chalmers Mfq. Co.) Plant for production of automotive bearings Construction of hydroelectric Railroad $ 2/ 11-26-54 4Sintering plant (John E . G r e e n a w a l t ) de Armazens G e r a l s do E s t a d o c 3-53 |/ to 00 00 machines 784 C i a . B r a s i l e l r o de U s i n a s M e t a l u r l r « » (Hlme-Comerclo e I n d . . S . A . ) 615 P r e f e l t u r e M u n i c i p a l do P o r t o 0 6- Amoun. 1957. '•50,973.00 450,973.00 1,746.21 EXPORT-IMPORT BANK OF W A S H I N G T O N STATEMENT OF LOANS A N D AUTHORIZED CREDITS U Fosforita Brazil Olinda, S. - P '-Jfc0'1 S^TP^S LATIN AMERICA - S ™ ^ ' D.,c A—-,]/ "TOSS." 1/ $ Dump t r a i l e r s tractors S . A . ( B a n c o da S. A . , Industria Engenharia Provincla l i l - S. S o t r e q S . A. 737- S. e 12 n A.) I m p o r t a d o r a de F e r r a g e n s , S . A . (Banco N a c . do D e s . E c o n . ) M a r i n , Representacoes e Comerclo, S . A . (Banco N a c . do D e s . E c o n . ) (Banco Nac. do D e s . E c o n . ) Parana Equipamentos, S. A , (Banco N a c . do D e s . E c o n . ) Vemag S / A , V e l c u l o s e M a q u l n a s $ 9- 5-57 64,000.00 3-31-58 11- 5-57 93.000.00 93,000.00 1-31-58 73714 73715 73716 73717 Diesel t r a c t o r (Caterpillar Tractor Co.) II- 5-57 6,300.00 6,300.00 2-28-58 (Caterpillar Co.) 11-15-57 89.000.00 89.000.00 2-28-58 D i e s e l t r a c t o r s S- a t t a c h m e n t s ( C a t e r p i l l a r T r a c t o r Co.) 11-22-57 14,800.00 14,800.00 2-28-58 11-29-57 22,100.00 22,100.00 3-31-58 12- 5-57 29.900.00 29.900.00 3-31-58 12-13-57 38.000.00 4-30-58 38.000.00 Ex e n s I o n pen d i n g 11-30-57 Tractor do (Caterpillar Tractor do T r a c t o r s and graders Co.) $ $ $ $ s 9- 5-57 w A.) 958-1 Disk plowing harrows (Rome Plow Company) 11- 5-57 36,000.00 36.000.00 1-31-58 E s t a b e l e c l m e n t o s James F r e d e r i c k C l a r k . S . A . (Banco N a c . do D e s . Econ.) 958-2 Disk plowing harrow (Rome Plow Company) 1!- 5-57 550.00 550.00 2-28-58 958-3 Disk plowing harrows (Rome Plow Company) 11-15-57 30.000.00 30.000.00 1-31-58 15.300.00 15.300.00 2-28-58 (Banco da P r o v i n c l a do R i o G r a n d e do S u l , S . A . ) Sotreq S. A. S. de T r a t o r e s 3 a w e 958-4 do 11-15-57 958-5 do 11-22-57 1.200.00 1.200.00 2-28-58 11-29-57 4.400.00 4.400.00 3-31-58 5-57 13.800.00 13.800.00 3-31-58 12-13-57 do Diesel t r a c t o r s S attachments ( A I l l s - C h a l m e r s M f g . Co.) 11-29-57 24.000.00 24.000.00 4-30-58 18.900.00 18.900.00 5-31-58 75.000.00 2-28-58 A.) I m p o r t a d o r a de F e r r a g e n s , Martin, R.VM.VINU C.IO.T L,MIT*TK„. 9 L i o n , S. A . , Engenharia e I m p o r t a c a o (Banco do Commerclo e I n d u s t r i a de Sao P a u l o , S . A . ) Salles, ° ^! T HNV S ' tractors 609-5 Hundo S . U N '^SKS? Ou^nding Rq~d A.) lil- de T r a t o r e s Diesel )il- e de Sao P a u l o , E s t a b e l e c l m e n t o s James F r e d e r i c k C l a r k . S . A . (Banco Nac. do Oes. Econ.) Salles, •^ASssr 220.800.00 4-19-57 Lion, S A E,pi,yD, K A**™, continued A. M o t o r g r a d e r s and Flgueras, W M ' O F Lo»« UNDU1UU1D B;U.A*CE C M „rr. AUTHOHMD Representacoes S. A. e Comerclo, 9.58-6 O s c a r Amortm, C o m e r c l o S . A . (Banco N a c . do D e s . E c o n . ) Parana Equlpamentos, S. A. 958-7 958-8 Cla. Dlstrlbuldora Agro-Industrial ( B a n c o do Commerclo e I n d u s t r i a 961-1 de Sao P a u l o , S . A . ) A l a g g l o , S . A . (Banco de C r e d l t o Raal d . M l n a s G e r . U . S . A . ) do Disk plowing harrows (Rome Plow Company) T r a c t o r s and h a r v e s t e r com5 8 7 - 5 b i n e s ( M l n n e a p o l l s - M o l l n e Co. Total 12- 12-10-57 47.756.337.37 929,120,795,13 L See f o o t n o t e s on p a g e 30. 230,190.890.01 634.631.149.07 16.542.418.68 246.031.852.51 405.141.715.24 89.766.201.76 27.139.055.60 fcO 00 CO EXPORT-IMPORT BANK O F W A S H I N G T O N 19. STATEMENT OF LOANS AND AUTHORIZED CREDITS December 3 1 . °SS" I » « « ^ I « M Corporaclon de Fomento de l E,pon£." A CID " U, D.K ) Am oun. 1/ 2/ ^ISSffiS."- Am-ui. Exp^D*. aSMk "SEISR!*" lu^id C u " ^""£v g ' 0««»din« s 6.696.760.00 4.960.479.66 1957. to o CO L-T.TIOH Is S Refinance purchase o f 10- Do 46S 374502 Do Do Rallway and equipment de A c e r o d e l Paciflco (CAP) CI a . S a l I t r e r a de T a r a p a c a y IV 10-26-49 S t e e l - m i l l equipment Equipment f o r f e r r o - Hot s t r i p m i l l e q u i p m e n t Equipment f o r n i t r a t e 808 C l a . de A c e r o d e l P a c i f l c o , (CAP) ( R e p u b l i c o f C h i l e ) S. A. 898 5-49 25.000.000.00 1.083.000.0C 17.220.240.00 23.917.000.00 construction 50J Cia. S equlp- 464 Do do S t r i p r o l l i n g equipment, open h e a r t h f a c i l i t i e s 2.750.000.00 2.750,000.00 460,000.00 2.290.000.00 497.430.91 58.000.000.00 58,000,000.00 13.228.991.20 44.771.008.80 16.690.757.63 1.000.000.00 500.000.00 500.000.00 73.177.87 2.000.000.00 1.338.720.80 661.279.20 43.794.50 3.750.000.00 3.750.000.00 22.075.34 918.590.84 918.590.84 8- 9-51 8- 9-51 1.150.000.00 150.000.00 3-31-58 2- 2-56 3.550.000.00 1.550.000.00 6-30-58 7-19-56 16.000.000.00 12.250.000.00 6-30-58 7-19-56 11.851.000.00 10.932.409.16 6-30-58 2-28-57 16.000.000.00 16.000.000.00 6-30-60 265.000.00 and 7-18-57 12.500.000.00 153.501.000.00 w 12.500.000.00 1.083.000.00 40.882.409.16 36.164.39 111.535.590.84 38,357,952.00 73.177.638.84 23,403.930.94 11,375,593.70 219,507.82 2.561,662.94 8,363,300.00 41,598.48 265.000.00 o Colombia: Republic of Colombia 296 construction 296-A do Do 442-A do Do 442-C M a t e r i a l s Do Do Republic of Colombla-Corporadon Republic of San D i e g o S . Eropresa de E n e r g l a Industrie 11.595.101.52 1-41 8.404.896.48 11.595.101.52 8,404,898.48 o 5-24-50 2.500.000.00 219.565.16 2.280,434.84 1,650,000.00 6W,434.84 340.479.41 4-13-48 5.500.000.00 122.545.79 5.377.454.21 4.600.000.00 777.454.21 879.842.78 442-D R a i l r o a d spare p a r t s R i v e r dredge t r e l a t e d e q u i p ( E l l l c o t t Machine C o r p . ) Construction for grain 480 2-21-51 105.000.00 26.971.38 78.028.62 63.000.00 15.028.62 10.030.25 o 3-17-55 840.000.00 255.000.00 585.000.00 135.000.00 450.000.00 20.211.25 w 6-29-50 2.200.000.00 25.805.45 2.174.194.55 1.540.000.00 634.194.55 260.128.66 V>? 6-28-44 3.000.000.00 3.000.000.00 3.000,000.00 490 1-11-51 1.503.389.00 1.473.609.11 1,252,711.20 679,466.76 683,451.59 942.400.00 809,067.00 135.625.76 199.993.10 40.000.00 6y» Goods and s e r v i c e s Electrtca, 501,753.83 220,897.91 for 182,652.24 hotel 6-52 942.400.00 3-22-56 200.000.00 7-18-57 20.250.000.00 3- S.A. Production of Artefactos refrigeration 780 Individually 6.90 159,993.10 7.266.21 and Banco Refinance 930 588-1 See f o o t n o t e s on page 29f779.89 Indus. A. C o l o m b i a n * de Glottman 1-41 5- reconstruction for 517 J. 5- C o l o m b l a - C o n s e j o Adm. C a j a de C r e d l t o A g r a r l o , Hotel Highway Do 30. purchase o f do Powe r shove1s (Thew S h o v e l C o . ) Power s h o v e l s U. S. 7.000.310.01 12-31-57 13.249.689.99 39.750.000.00 39.750.000.00 4-8-55 70.800.00 16.243.38 27.278.32 27.278.30 54.556.62 149.795.51 89.877.30 13.249.689.99 95.334.36 39.750.000.00 84.400.68 59.918.21 4.183.06 2.258.02 E X f O t T - I M F O I T I A N K OP W A S H I N G T O N 20. STATEMENT OF LOANS A N D AUTHORIZED CREDITS C %£ZZ.T£ZZ LATIN A F R I C A - C o l o m b i a - c o n t i n u e d D e p a r t m e n t o de C u n d l n a m a r c a and SS" U. S. Psooucn AND S U V I O I c D~ 1 Road r o l l e r s and 6 6 W (The G a l l o n I r o n ,.!nlng. equipment accessories Vorks) A-o*»y J 2-22-55 5 *ttE5ZLM 2/ 8).000r00 $ 13.837.50 Amou-, E.PUTD-C $ "Z&vsr iE£b& $ 41.04 67.162.50 December 3 1 . $ Repud s O o ^ b . J 32.958.96 67,162.50 $ 32.958.96 'S^F 1.611.90 "c^K^t/? $ 1957. L Tvno "" " S 329.57 Steam b o i l e r a n d e q u i p m e n t 9-29-55 STi-l M o t o r g r a d e r s and 10-27-55 Olesel generator Cla. C o l o m b i a n * de Electrlcldad 56.000.00 473.15 55,526.85 9.254.47 46,272.38 1.922.90 19.801.00 31.808.54 2.451.66 71.060,341.65 10.578.746.45 rollers nnn-1 39.589.87 sets WM 3-29-56 232.000.00 700.00 117.692.388.41 780.764.00 231.300.00 61.523.815.26 7.000.310.01 9.404.85 231.300,00 48,387,499.14 38.850.972.75 c« t . m M a t e r i a l s and s e r v i c e s f o r Inter-Amarlcan Highway TA Llneas Acreas C o s t a r r l c e n s e s , S.A. m and s p a r e p a r t s 11-26-54 L e s s : Advances b y participants Macional H 225.000.00 lr937.79 Cla. w 95.066.54 Aircraft 673,062.21 334,217.38 338,844.83 24,281.57 de F u e r z a y L u z , Elerfrlc I n s t l t u t o C o s t a r r l c e n s e de r l c l d a d ( R e p u b l i c o f Costa ElectRica) 622 M i n i s t r y o f P u b l i c Works 670 S o c l a t a K a l i a n * de C o l o n l z z a x l o n e A q r l c o l a (SICA) (Bovernment o f Costa R i c a ) Dn-r enu.—nt Diesel e l e c t r i c generating sets (Nordberq M f q . Co.) Dump t r u c k s (Mack M o t o r T r u c k C o r p . ) 891 Beech, y F a i t , Ltda. and Concrete 3-3 O 55 3-55 1.023.000.00 73.348.80 949.651.20 379.860.48 569.790.72 32.372.68 4-28-55 243.000.00 106.21 242,893.79 161.929.20 80.964.59 6.539.28 2-14-57 161.000.00 103.171.52 1.246.03 3- 57.828.48 3-31-58 103.171.52 a 9.632.12 mixers 959 10-31-57 1-31-58 (Banco de C o s t a R i c a a t a t ) Farm t r a c t o r s and equipment fiS2=2 11-29-55 Motor t r u c k s and Do M a c h i n e r y and T r a c t o r s , Ltd. Truck and 8- 6-57 8- 6-57 8,524.47 3.716.81 26,283.19 10-31-58 30,000.00 278.76 1,068.47 64.40 16.100.00 15.871t44 228.56 7-23-57 15,871.44 2-28-58 de S e g u r o s ) M a c h i n e r y and T r a c t o r s , Ltd. T r a c t o r s , e a r t h moving e q u i p . 717HJ 4-18-57 Jotal 118.310.51 21.551,930,11 " r^,,,,. 44.714.97 Dump t r u c k s 747-fl ( I n s t l t u t o Naclonal 4-56 tractors 747-9 Ltd*, 5Seml-trallers Z2fcJ Do Beeche F a i t , 3-31-58 parts 747-1 90.685.76 6.303r880T27 4-30-58 34.787.82 13,261,756.88 3.098.33 1,895,607.20 230.42 2,683,820.16 12.473,543,92 4,044,004.24 1.200.000.00 2.800.000.00 369.534.24 300.000.00 3.609.85 150.000.00 5,159,632.12 3-J9-51 r,lhin. PHmader. S A L e s s : Advances by participants 4.000.000.00 4.000.000.00 791 L e s s : Advances b y participants 300.000.00 300.000.00 to See footnotes on page 30. CO EXPOtT-IMPO*T BANK OF WASHINGTON 21. STATEMENT OF LOANS A N D AUTHORIZED CREDITS *xr l * — ' f — * LATIN AMERICA - Cuba - Fabric* Nacional de Cuioin AUTHOWZID »•»•'"•?£«&—«~ DM* An™., $ T r a c t o r s and e q u i p m e n t Implemented Shovels, cranes, e t c . 6 5 2 - 5 (Deere » Co.) T r a c t o r s and a g r i c u l t u r a l 652-4 E a r t h moving e q u i p , t g e n e r a 737-8 Powe Equipment C o . , S . A . ( W i l l i a m A . Powe) Powe M a c h i n e r y C o . , S . A . Do Powe Equipment C o . , S . A . Operadora "^sussf "&TVTUI 0 . LOAM ExiwyD.lt "if-EiiST ££hXk Ouuu.Hli^ Rep^d to CO bo 1 &E£° U C ^ r r ^ W c ' L-T«,ON continued 5- CI a . A ™ U « , I / J / U N M I U U I D BALANO _ Central do C e n t r i f u g a l machinery Jaguey 3-56 150.000.00 $ ding 160.000.00 2-28-58 163.507.78 140.392.84 2-28-58 Semi-trailers S. A. Do 828-2 $ % 5-23-57 300.000.00 293.399.42 5-31-58 6-14-57 150.000.00 150.000.00 6-30-58 160.000.00 23.n4.94 3.507.78 6,600.58 19.607.16 263.08 160.000.00 300.000.00 6,600.58 150.000,00 15.000.00 Traflco y Transporte, $ $ 5-31-57 160,000.00 2-24-56 $ $ 17.500.000.00 Ex 150,000.00 15.000.00 549.53 (• a c c e s s o r i e s do II- 8-56 Total 24.200.00 125.40 39.738.207.71 154.920.08 24.074.60 18.243.792.26 21.316.380.50 23.114.94 7.628.00 16.446.60 149.37 248.458.01 21.091.037.43 3.377.119.64 w w H EcuadorMunicipality of o Quito 4-22-42 6-24-54 328-A Municipality of 3.650,000.00 Guayaquil 328 do 4-22-42 1.32 5.300.000.00 5.300.000.00 8.791.900,00 31*1 do 10- 8-47 1,175,308.21 2.830.755.98 a 4.166.127.26 2,720.000.00 2,720,000.00 390,123.56 2r 320,676.44 308,779.84 % o w w 588,734.35 Ju9fiQ»QOjO_.QQ 250.000.00 250,000.00 2-28-58 Do 4 7 1 - B Ral Iway e q u i p m e n t R e h a b i l i t a t i o n of water 12-14-49 1.500.000.00 1,500,000.00 381.290.35 1,118.709.65 256.794.05 Do 1*71-0 6-14-51 500,000.00 500,000.00 106.863.28 393.136.72 82.818.64 Do 471-E 3-20-52 800,000.00 Do 471-F 7-31-52 165.000.00 165.000.00 16.012.04 148.987.96 12.754.06 2.499.995.40 166.666.36 2.333.329.04 213.299.78 367,579.47 60,000.00 307,579.47 12,344.89 308f571.52 51,428.59 257,142.93 8,420.20 167.720.00 16,772.00 150,948.00 1,973.04 36.429.936.49 11.479.213.08 24.950.723.41 7.056.375.78 500 741 Improvement o f G u a y a q u i l and Q u i t o a i r p o r t s do Sugar m i l l machinery t de V l a l l d a d de 7-19-51 2.500.000.00 1-10-57 280.000.00 9-15-55 900.000.00 2-23-56 3|0.000.00 10-11-56 168.000.00 5- 9-57 97.000.00 335.000.00 4.60 280,000.00 7-31-58 11-30-58 1.428.48 la 845 Cla. Azucarera Valdez, S. A . ( R . f a . 1 . Valdez, et » l ) 335.000.00 equip 773 Comlte E j e c u t l v o 1-56 11- 471-G 800.000.00 916. Sugar m i l l machinery I e q u i p , ( F u l t o n I r o n Works C o . ! 38.746.900.00 See f o o t n o t e s on page 3 0 . 97.000.00 22f542.98 2.294.420.53 4-lQ-58_ > E X P O t M M K M T SANK OF WASHINGTON STATEMENT < IK" i£Z^Tt£Z% LATIN AM-RICA - U -*'"TS5S£?»"V"- D«* e An~u«_L/.2./ "S«VS5."» OF LOANS A N D AUTHORIZED CREDITS &WD«. /Wa- •SSbSk December 3 1 . 1 3 5 7 . Rep~d ^ E S S * " o»«.„d», 1™' Pan L i d o . S . A . 8^1 ( B a n c o de C o m e r e l o de E l S a l v a d o r ) SSI O l s t r i b u l d o r a de A u t o n o v i l e s , S . A . Bfi5 (Dona S e c u n d l n a Poaa v d a . de Rossotto e t a l ) O l s t r i b u l d o r a de A u t o n o v i l e s , (Banco A q r l c o l a C o n e r c l a l de El S a l v a d o r , e t a l ) Baking equipment (Francoeur t C o . , I n c . ) T i r e recapping plant ( U . S . Rubber I n t e r n a t i o n a l ) Bus b o d i e s ( B l u e B i r d Body C o . ) 9-19-56 $ 5.625.00 ? $ 277.06 5.347.94 S 2.487.44 S 2.860.50 $ 238.63 10-25-56 19.200.00 2,925.00 16.275.00 2.712.50 13.562.50 777.13 12- 3-56 2.•'100.00 366.88 2.033.12 1.284.00 749.12 94.83 1-18-57 11.1*00.00 1.483.27 9.916.73 4.250.01 5.666.72 378.31 2,889.65 RAO ( B l u e B i r d Body C o . ) Ml 1.007.51 6.742.49 3.852.84 904 do 3-22-57 2.525.00 327.88 2.197.12 941.61 1,255.51 76.74 Do 905 do 3-22-57 7.460.00 8.00 7.452.00 2.794.50 4.657.50 222.48 Do 906 do Do V> B< H HIlos C l a . H l n e r a de H u e h u e t e n a n g o , $ S.A. Do H . de S o l a e UMV,vno» continued S.A. 1-18-57 do Soap t g l y c e r i n e m f g . e q u i p . (The S h a r o l e s C o r e ) Materials 3-22-57 8.800.00 5- 9-57 9 . 8 0 0 .DO 2-15-57 1 1.108.83 7.691.17 3.296.01 4.395.16 279.47 1.254.84 8.545.16 2.441.48 6,103.68 241.18 37.500.00 37.500.00 112.460.00 46,259.27 w O E 42,140.14 66.200.73 a and e q u i p m e n t f>17 CementOS N o v e l l a , S . A . 1.238.897.60 R46 Comercial MacDonaId Acetylene generator, compres727.41 Motor (Guatemala) C l a . G u a t e m a l t e c a de M a q u l n a r l a , ltd.. 7- 5-56 Agricultural Do G u a t e m a l t e c a de M a q u l n a r l a , 169.123.01 54.608.77 7-31-58 1.115.38 82.21 42.26 19.123.01 95.391.23 1.250.67 15O.000.00 i machinery v^-l Agricultural Cla. 1.197.59 114.514.24 t r u c k s a n d equipment 619-1 9-22-55 67.366.65 10.011.86 1-31-58 10-27-55 416.822.11 45.913.80 5-31-58 17.366.65 39.988.14 1.478.07 50.000.00 370.908.33 216.822.13 154.086.20 10.078.57 200.000.00 85.100.00 42.550.00 42.550.00 3.545.29 571.780.98 1.796.135.37 114.116.59 1,813.175.50 27.132.709.47 2.944,123.79 57.354.79 CO machinery 717-1 Asphalt mixing plant t equip. 581-2 11- 1-56 85.100.00 Stanley) F . Kong e H l j o s , Plant Ltda. for shortening t salad 6S4-1 8-15-57 165.000.00 165.000.00 12-31-58 Inc.) Total Daveloppement 2,645.336.79 Agrlcole Development o f Irrigation Total See f o o t n o t e s o n page 3 0 . 1,886.01 275.534.43 2,310.561.56 57,354.79 r u b b e r and and a g r i c u l t u r a l Ex ens I o n pen 3,054,115.03 28,945.884.97 CO CO to EXKMT-IMFOKT BANK OF WASHINGTON STATEMENT OF LOANS A N D C„, %£ZLT£Z% LATIN AMERICA - c of T (&.ponL'""IC,D«h=«.) D«c Honduras 821 920 Farm m a c h i n e r y (Allls-Chalmers Mfg. Co.) T r a c t o r s and e q u i p m e n t (Allls-Chalmers Mfg. Co.) Construction of 9- b w t a $ " t££b& R^-id "SMifSr $ i December 31, 1957. ST»TUIO»LOAM \ 3.358.50 13.641.50 7,227.00 6,414.50 526.65 75.00 5.425.00 775.00 4,650.00 63.40 4-11-57 91,200.00 For e x p a n s i o n o f s u g a r 8- 1-57 69.750.00 563.700.24 1,000,000.00 24.881.50 7-15-J8 69.750.00 436.299.76 2,211,700.74 8.002.00 436.299.76 1.002.27 517.114.26 1.592.32 1.000.000.00 equlpment- w 3-21-45 Do 379 Do Nueva C l a . E l e c t r l c a 427-A Chapala. S. A. 10- Do 427-D RalIway 12- 3-47 7,000,000.00 7.000.000.00 6.663.947.37 336,052.63 1.305.636.37 Do 4 2 7 - E Two sugar mi 11s 12- 3-45 5,000,000.00 5.000.000.00 4,750r000.00 250,000.00 897.499.27 Do 2-11-48 6,000,000.00 5.500.000.00 3.645.235.00 1,854.765.00 1,120,503.81 2- 2-49 1,515.750.00 1.515.750.00 985.238.97 530.511.03 324.352.56 8- 3-49 12,900,000.00 2.657.80 12.897.342.20 9.028,139.54 3,869,202.66 7,301.796.63 100.000.00 4.90Q.000.00 1,460,000.00 2,940,000.00 524,958.78 2.740.000.00 616,951.69 2.123.048.31 493,722.53 3-21-45 equipment 1-47 20.000.000.00 3.500.000.00 Do 4 2 7 - G Ammonium s u l f a t e p l a n t T e m p i c o - C I u d a d Madero 4 2 7 - H W a t e r works Rai iway e q u i p m e n t 4 2 7 - J Mexican N a t i o n a l R a i l w a y ^ Railway equlpment427-K F e r r o c a r r i l del P a c l f l c o Do 4 2 7 - L Coal m i n e e q u i p m e n t Do 487-A Falcon Do 4 8 7 - B A n z a l d u a s Dam 12-15-50 2.000.000.00 Do 4 8 7 - C Yaqu] A l t o Canal S t e e l - m i l l equipment4 8 7 - D A l t o s H o m o s de M e x i c o R e h a b i l i t a t i o n o f Mexican 487-E National Railways R e h a b i l i t a t i o n of Mexican 487- F RalIway 12-15-50 17.500.000.00 Do Do Do Do Do Do Do Do C i a . Fundi d o r a d e F l e r r o y A c e r o de M o n t e r r e y , S . A . Do H e x ! c a n G u l f S u l p h u r C o . and CI a . do C l a . Mlnera Fernandez, S. A. Dam and power plant 487-G Telecommunications system S t e e l - m i l l equlpment4 8 7 - H H o j a l a t a y Lamina Rehabilitation of 487-1 Mexican National Railways 539 Bar and r o d c o m b i n a t i o n 801 Steel 494 Sulphur 494 do P r o d u c t i o n o f manganese concentrates 505 See footnotes on page 30. mill equipment plant mill 8- 3-49 5.000,000.00 4- 5-50 2,740,000.00 JlrJirSP-, 5-31-51 8- 11.500,000.00 •> «•:* 7 6 4 fl6 150.000.00 500,000.00 235.390.98 2.000.000.00 12-31-58 430.000.00 9-15-58 8- 2-51 5.000,000.00 500.000.00 9-15-58 3- 6-52 1.440.000.00 3.600,000.00 10-11-56 23.260,000.00 11-20-52 4.500,000.00 6-28-56 42.000.000.00 4-12-51 3.972,500.00 12-23-55 1.027,500.00 o 17,500,000.00 1,513,366.74 3,486,633.26 4,500.000.00 1,800,000.00 2,700,000.00 159,535.28 1.440.000.00 960,000.00 480,000.00 129,629.94 3,600.000.00 2,700,000.00 608,579.97 19.100.000.00 19.100.000.00 269.506.86 3r375r000.00 626.305.50 5.000.000.00 51.000.000.00 12-18-52 O 8,448,456.77 11.264.609.02 2-51 8-23-51 ..._ ._ U-T.TIO. 1 ,000,000.00 11-30-59 21,450.00 .. CD $ s 5,500.00 1,650,000.00 'cwSjnxu^c' '^S£° CX«-KW i 17.000.00 1,650,000.00 RalIway A™».„, " 5-56 2.761.700.00 S. A. Tsasa- $ 1-17-57 mill c 2/ AUTHORIZED CREDITS UNOU.ui^B.1j*a 5-23-57 Total Flnanclera, A — ,J / Crawler t r a c t o r s w i t h b u l l d o z e r s ( A I l l s - C h a l m e r s Mfg.Co. 879 H l n l s t r y of Finance 908 CI a . A z u c a r e r a H o n d u r e n a , S . A . (Banco N a c . d e Fomento de H o n d u r a s ) 9 3 4 Mexico: Naclonal '"""" $ continued Honduras H a q u l n a r i a y A c c e s o r l o s , S . de R. L . .Banco N a c l o n a l de Fomento) Maquinaria y A c c e s o r l o s , S. A. (Banco N a c l o n a l de Fomento) Republ C w m Atmro.iiio 4.160.000.00 6-15-58 4.500,000.00 41.390.821.25 12-14-60 1,125.000.00 609,178.75 609.178.75 3,972,500.00 23,975,290.25 682,597.90 1,027,500.00 1.027,500.00 P.1,667.84 661,337.16 74,795.67 E X P O t T - U e V O t T B A N K OP W A S H M O T O N 24. STATEMENT OF LOANS A N D AUTHORIZED CREDITS December 3 1 . °Hr S^.Tp^S LATIN AM-RICA - M e x i c o - c o n t i n u e d Pen A m e r i c a n S u l p h u r Company end A z u f r e - , Panama r l c a n a . S . A . de C . V . 5 1 6 Empaques de C e r t o n T i t a n , S . A . ( V a l o r n I n d u s t r l a l e s . S . A . e t e ! ) 585 DS V,CU J*°^T»<£ " 2-21-52 Sulphur p l a n t Machinery, supplies, 786 Do 79* do Paper c o n t a i n e r p l a n t (Sandy H i l l I r o n t B r a s s ) 611 Steel 702 do Sheet g l e s s r e a n n e e l l n g e q u l | ( S u r f a c e Combustion C o r p . ) al) 714 Piano. S. A. P i a n o de M e x i c o , S . mill $ 4,414,000.00 equipment w &wQ«. $ s and ££&. S 4.414.000.00 11-26-54 788.000.00 32.479.43 755.520.57 4-5-56 1.000.000.00 7.575.30 992.424.70 5-18-56 250,000.00 2-17-55 662.000.00 6-30-55 2,055.000.00 7-21-55 37.100.00 1957. u "SESoV- *—«i/i/ Dtfe Do Le C o n s o l l d a d a . S . A . Hojalete y lamina. S. A. (Valores I n d u s t r l a l e s . S.A. e t Vldrlo Vldrlo US 250,000.00 "t&tir iUerid $ 1.751.666.69 $ 217.835.41 Ouuuadu, «5£S££Cff ^^S"' 2.662.333.31 $ 637.742.52 537.685.16 70.265.92 992.424.70 31.591.09 UMT.TIOH 5-30-58 7.434.72 2.00 654.565.28 327.291.34 327.273.94 69.579.73 2.055.000.00 128.437.50 1.926.562.50 128.633.81 37.098.00 17.518.50 19.579.50 2.434.09 720.000.00 144.000.00 A. 767 S. A. e t al) A c e r o s de C h i h u a h u a , S . A . (Cla. 776 Compenla E l e c t r l c a M e x l c a n a Norte, S. A. (Norte) Compenla E l e c t r l c a M e x l c a n a Rolling mill ( E . W. B l i s s equipment Co.) 8-11-55 720.000.00 576.000.00 38.058.89 6-15-60 S33.000.00 533.000.00 4.094.65 6-15-60 1.216,000.00 1,216,000.00 del 760-A 12- 8-55 7.072.000.00 6.539.000.00 del Compenla E l e c t r l c a M e x l c a n a del Compenla E l e c t r l c a M a c 1 o n e 1 , Compenla de E l e c t r l c i d a d r—I de 535.000.00 760-E Compenla E l e c t r l c a de h e r I d a , S. A . (Merlda) Cla. Industrial Electrlca do 7W-F 12- 8-55 822r720.00 a 6-15-60 4*8*8 Cooperative Manufacturer de Cement p l a n t TeenIce Flnanclera, S. Do I n d u s t r i a l , S. 17 equipment 44 00 (Naclonal 1 8 9 8 81 A.) 803 A. Cement p l a n t e q u i p m e n t ( F u l l e r Co.) B o t t l i n g machinery t e q u i p . 6-28-56 217.500.00 214,088.00 3,412.00 10,584.00 181,504.00 4.2S8.10 816 Evaporating equipment 824 9Textile 4,406.6; 6-56 8V» Malta. S. A. Banco N a c l o n a l de C r e d l t o 8^6 Aorlcola. S. A. Banco N a c l o n a l de C r e d l t o A g r l c o l a F l o u r m i l l equipment ( A l l l s - C h a l m e r s M f q . Co.) T r a c t o r s *• a g r l c . m a c h i n e r y (Mlnneepol1s-Mol1ne Co.) fltf 927 o w w w machinery 2.794.14 5.588.29 370.97 7.200.00 1.604.80 5.595.20 2.944.80 2.650.40 264.07 4-56 4.800.00 867.37 3.932.63 1.573.06 2.359.57 211.23 10-10-56 5.000.000.00 156.070.61 4.843.929.39 4.843.929.39 167.117.81 6-14-57 5.000.000.00 500.000.00 500,000.00 8 V) Do w o 760-B do M i x i n g machine and 9-28-56 10- 4,500,000.00 3- 1-58 8.382.43 loader 2 27? 4 0 Plastic extruder (Modern BS7 853 Cementos P o r t l a n d M o c t e z u m a . S . A . 8S8 P a s t e u r ) z a d o r a de l o s P r o d u e t o r e s de L e c h e . S . A . «?9 See f o o t n o t e s o n page 30. T e x t i l e loons 10-26-56 (Draper Corp.) C l i n k e r m i l l and equipment ( K e n n e d y - V a n Saun M f q . S E n q r . ) 1 1 - 1 6 - 5 6 Pasteurizing plant 11-16-56 (Roberts Engineering Co.) i ,<;w. oo 48-45 2,501.55 625.14 7,700.00 20.00 7,680.00 7,680.00 12.500.00 116.67 12.383.33 6,000.00 6,000.00 1,876.21 102.81 1.696.16 10,687.17 592.25 2.666.64 3.333.36 341.25 138.58 CO Ox 25. to December 31. 1957. CO EXPOftMMPOrr BANK OF WASHINGTON STATEMENT OF LOANS A N D AUTHORIZED CREDITS (c™^-- ,—*«., • C KT LATIN AMERICA - Mexico - continued Abastecedora de Construce(ones de (topo^^^Ml**.) Cfttom Au-nKMtiziD D.« A™U„.J/ 2/ c *g£E5£.um Electric furnace M™, E«pbyD«i« !=£&& Dab by Othcn s 861 R«p«i $ 1.614.75 $ Outstanding 7.094.81 $ 1= v ^X!l£p? L.M.T»no» 457.64 en N. C. de C. V. (Fomento de Banco Naclonal de Credlto Agrlcola S. A. fNac. F i n . . S. A.) 878 Frigorlflcos America, S. A. Prefabricated buildings Naclonal Flnanclera, S. A. (United Mexican States) Chapultepec, S. A. Steel-mill equipment- m 1-11-57 89.000,00 320.00 88,680.00 8,868.00 1-29-57 4.350.00 51.48 4,298.52 716.42 2- 7-57 16.000.000.00 7q t 8l2.00 Ice manufacturing plant 887 12,300.000.00 1-15-59 3,700,000.00 Hydraulic pipe line dredge 150,510.00 V- 7-57 Constructors Malta, S. A. Omnibus de Mexico, S.A. de C.V. (Banco Naclonal de Fomento Cooperatlvo, S.A. de C.y.) 80 00 171 720 00 224.50 156,775.50 404 (The Flxlbte Co.) 4-11-57 157,000.00 Cla. Papelera Maldonado, S. A. (Jorge Maldonado, et al) 923 Equipment for paper mill (The Sandy Hill Iron ( Brass Work- 1 6- 7-57 620,000.00 Zinc Naclonal. S. A. 929 (Bowen Engineering, Inc.) 941 350,000.00 350.000.00 10-31-58 Cerveceria Moctezuma. S. A. W- 140.000.00 140,000.00 6-30-58 201.000.00 201,000.00 5-31-58 116.700.00 116,700.00 2-28-58 95.328.00 70.646.25 3-31-58 Do Trlplay de Parral, S. A. (Naclonal Flnanclera. S. A.) Homes y Valdes. S. A. 7- 9-57 Tin can plant 8-23-57 Conveyor machinery (Alvey ConveYOr Mfq. Co.et al (10-24-57 Pasteurizers (BarrY-Vehmlller Machinery Ccj J 12-10-57 968 Equipment for manufacture of plywood (E.V. Prentice Co.) 12-10-57 967 Construction equipment 640-1 (Koehrlnq Inter-American Co.) 6-27-55 Agricultural equipment 9- 1-55 599-1 (New Holland Machine Co.) 5-30-58 130.646.25 5.907.72 608,683.25 608.683.25 5.633.08 15.855.00 15.855.00 w w o w Q 24.681.75 19,277.15 599-2 Land levelers,graders,dl tell636-1 ers, etc. (Eversman Mfq. Co.) 7-20-56 7,000.00 9-22-55 21,406.13 616- ? 1-12-56 24,999.48 do 11.316.75 15,855.00 26.129.25 4,556.23 o w 7-31-58 8-11-58 Land levelers and scrapers 21,000.00 616-4 Agricultural sprayers fc equip 748-1 Abastecedores de Maqulnarla. S. A. 667-1 jnachlnery ( J . I . Case Co.) Concretos Premezclados de Mlxcoac, 631-1 (Blaw-Knox Company) S. A. Truck-mounted concrete mixers Concretos Alta Reslstencla, 750-1 (Construction Machinery Co.) S. A. de C. V. Transcrete truck mixers 750-2 (Construction Machinery Co.) Do Concretos Alta Reslstencla S.A. de C.V. (Banco dePTsls.S.A. de C.V.) 750-3 do Truck-mounted concrete mixers Do 750-4 (Construction Machinery Co.) Power shovels t earth moving 588-3 equipment (Thew Shovel Co.) Diesel and gas engines Pozos v Equlpos del Paclflco. S.A. 663-? (Cummins Enqlne Co.. Inc.) Maqulnarla General del Occident*, Tractors, equip.,t generators 737-3 Maqulnarla Diesel, S, A. (Justo A. Ordrlozola) do 737-* Land l e v e l e r i , graders, etc. 636-3 See footnotes on p ' 9-27-56 10- 6-55 126,437.05 10-28-55 12,580.00 52.055.21 11- 3-55 44,500.00 40.00 6- 5-56 45.500.00 260.00 129.00 _7-lk£8_ ( ( 8,380.10 349.60 66,001.74 675.00 1,676.02 34,761.01 6,704.08 26.18 2,761.60 12.230.40 8,037.12 4.193.28 524.63 44.460.00 22,230.00 22.230.00 1.42B.49 45.240.00 I5.O8O.OO 30.160.00 2.361.16 47.871.00 7,978.50 39.892.50 1.104.31 59.779.53 17.761.28 42.018.25 2.333.55 90,000.00 3,863.01 200,000.00 2-28-57 48.000.00 11-22-57 46,000.00 1-27-56 75.000.00 75.000.00 1-31-58 2-28-56 107.761.28 47.981.75 4-30-58 3- 9-56 277,683.37 261.583.24 3-31-58 16.100.13 2.681,37 13.416.76 5-18-56 277.171.86 77.405.99 8-31-58 199.765.87 77.171,86. 122.594.01 10-11-58 21rqq4.66 46.000.00 2-28-58 75.000.00 I EXPOItT-IMPOUT RANK Of WASHINGTON 26. STATEMENT OF LOANS A N D AUTHORIZED CREDITS SZIE.^SS HST (E.poJDr*"^..^) Power shovels,cranes,dragline 5-17-56 Cane shredder, etc.(Gruendler! 6-14-56 723-1 Crusher & Pulverizer Co.) Agricultural 6 al1 led equip. 8-16-56 578-5 (The Oliver Corporation) SI 7-4 S. C. de EJidatarlos y Obreros del Industrial Avlcola "Santa Rosa" wo., 1 / 2 / D~ $ 120.000.00 32.000.00 $ 6.200.00 9-27-56 78.285.16 2- 7-57 167.197.95 2- 8-57 16.400.00 Amoun. S 120.000.00 E»p^D.« 9-30-58 1.432.11 150.000.00 8- 9-56 Agricultural Implements 587-4 (Mlnneapolls-Mollne Co.) Tractors, earth moving equip. Agromecanlca, S. A. (Alfred B. Holt) 737-5 (CaterDlllar Tractor Co.) Polishing machine and Productora Ferretera Hexlcana, S.A $60-1 Germain ( Associates, Inc.) Industrial, S. A.) °-Btt2Ba- 150.000.00 s $ s S Out-ndin, R«p*d S £g™£ff 15.401.22 15.166.67 1,280.46 Ext ens Ion pen 58.574.21 9-30-57 6.180.00 2.060.00 4.120.00 360.08 1-31-58 48.44 150.000.00 75.000.BO 19.710.95 3.285.16 l6 f 425.79 162.306.50 17.197.95 145.108.55 2.284.56 16,351.56 2,725.27 13,626.29 371.79 150,000.00 Industrial warehouse truck w H Water purification equipment Diesel engines and generator 664-5 sets (Harnlschfeqer Corp.) 54.000.00 12-31-57 Total 320,593.790.92 Nlcaraqua: Empresa de Luz y Fuerza Eletrica S. A. (Republic of Nlcaraqua) ministry of Finance Banco Naclonal de Nlcaraqua 120,000.00 Lift trucks and parts Cervecerla Moctezuma, S. A. Abastecedores de Haqulnarla, S. A. 1957. L,M,TVnON S £ 30.567.89 11-30-58 20.00 4.891.45 Dub. by Othen iSShXk $ December 3 1 . u 496 54.000.00 1,428.586.04 Diesel power qenerator 5-24-51 600.000.00 870 Inter-American Highway Motor graders *• Traxcavators (Caterpillar Tractor Co.) Tractors and attachments 578-3 (The Oliver Corp.) 12-12-56 2.000.000.00 917 5-16-57 38.200.00 38.200,00 300.000.00 225.709.32 2.938.200.00 263,909.32 9-29-55 Total 1-31-59 89.546,461.47 229.375.182.37 243,561.04 600.000.00 2.000.000.00 95,993.652.74 133.625.090.67 31.434.866.35 300.000.00 300.000.00 95.513.53 23.975.290.25 o s o 6-30-59 2,000.000,00 17.582.54 56.708.14 43.878.60 30.412.08 2.684.99 617.582.54 56.708.14 343,878.60 330,412.08 98.198.52 w w {> PanamaFinancing unfunded AaDubl.c of Panama 7 26-51 712 811 02 Construction of 6-14-57 Tournapulls with scrapers Empresas Pananenus, S. A. 1,530.&it Tractors and equipment 603-2 (Mas sey-Ha r r1s-Fe rguson. 1 nc.) 4-26-56 Toi*L . 30.000.00 30.000.00 14.403.000.00 33.530.84 12.850.000.00 1.519.469.16 712.811.02 3.000.000.00 2.938.800.48 806.658.14 271.492.44 Paraguay: RapublIc of Paraguay m Hlqhway construction 5-18-42 3.000.000.00 Do 570 Asuncion water supply system 9- 2-54 7.000.000.00 1.719.333.96 6-15-5*8 5.280.666.04 5.280.666.04 129.845.28 691 Reconstruction of airport 6- 9-55 800.000.00 16.674.83 8-31-58 783.325.17 783.325.17 9.738.63 6.000.00 10.800,000.00 1.736.008.79 6.125.190.73 1.210.577.46 1.676.502.45 « Do Total See footnotes on page 30. 9.063.991.21 2.938.800.48 61.199.52 1.670.502.45 to CO EXPORT-IMPORT B A N K OF W A S H I N G T O N 27. STATEMENT OF LOANS AND AUTHORIZED CREDITS C.torr. AirmoiuztD C W" (O——.-!«—) LATIN AMERICA - 4»3 547 627 Z i n c r e f i n e r y t power e q u i p . Copper m i n i n g and r e f i n i n g equipment (Toquepala) H o s p i t a l equipment (American H o s p i t a l Supply C o r p . ) <m Peru Carrocerlas Hetallcas. $. do 3-50 4-54 3-11-55 Rayon P e r u a n a , S . Fertilizer A. Industrial Fllotex. A . Y f- W l e s e . S . A . C o n s o r c l o de E q u l p o s de S. Yarn dyeing machinery A. «?•» Construc- "S-Aisr sS£b& !Up~i o..-™),,. *i?Hr?!l*D u o"SS£KrBff L.MTAT.O, S.A. (Frederlco Hermanos, S . C. I.330.000.0C 2-28-56 32.000.00 899 910 1*.., Low bed m a c h i n e r y t r a i l e r s ( H a r t I n Machine C o . ) T e x t i l e loom* (Crompton t Knowles C o r p . ) M a c h i n e r y and e q u i p m e n t f o r suaar m i l l (The S q u l e r C o r p . ) B o t t l e - w a s h i n g machinery ( B a r r y - M e h m l l l e r Export Sales Co.) Bottle-f1lllng Textile Textll 81.200.00 280.000.00 8- 16,500.000.00 $ $ $ 40.439.437.82 16.500.000.00 $ 2.804.856.16 40.439.437.82 439.437.82 1.248.800.00 561.600.00 687.200.00 56.659.55 31.971.42 15.985.72 15.985.70 1.708.04 5 1-58 28.58 1.550.000.00 1.550.000.00 6-28-56 66.000.00 65.250.00 8-31-56 4.600.00 1.547.20 3.052.80 3.052.80 9- 6-56 3.120.00 964.56 2.155.44 1.539.60 615.84 62.66 Jl1-16-56 33.200.00 66.80 33.133.20 4.141.65 28,991.55 702.61 16,500.00 .30 16.499.70 1.375.03 15,124.67 758.02 1,550,000.00 136.96 1-56 o S. S. F i s h meal A. A. Bus body 2-19-57 3- Ex ens I o n p e n d i n g 6.000.00 8-31-57j 6.000.00 1-57 11.280.00 9.600.00 731.000.00 3-28-57 731.000.00 4-18-57 30.000.00 30.000.00 4-18-57 7.500.00 7,500.00 8-15-57 9.800.00 9-13-57 48.000.00 Do Socledad A g r l c o l a "Pucala" Ltda., 3-15-57 3-31-58 36.000.00 3-31-58 60.831.23 5-31-58 48,000.00 machinery TournapulIs 6-28-56 580-5 (LeTourneau-Mestlnghouse Co.) Tournatractor ^8010 (LeTourneau-Wastlnghouse Co.) 1 2 - 1 3 - 5 7 Power p l a n t e q u i p m e n t 181-1 ( W b r t h l n g t o n C o r p . ) 9-29-55 C o n c r e t e m i x e r s on t r u c k s 10- 4-56 581-4 (Worthlngton Corp.) 30. 9.800.00 plant r S. A. C o n s o r c l o de E q u l p o s de C o n s t r u e d o n , S . A . (Banco G i b s o n . S. A.) 1 machinery 122.694.95 S.A. 9-30-58 parts Agricultural Peruana, 3 o 1,680.00 machinery 9rt Cla., Carrocerlas Hetallcas, See f o o t n o t e s o n page 6-30-58 $ •&-30-61 equipment 911 A . F a b r l c a Mac 1one1 Comerclal I n d u s t r i a l (Banco C o n t i n e n t a l ) 4.300,000.00 60.000.000.00 A. A. 894 Fabrltex Peruana, S . A. ( F i n a n c i e r s Peruana. S. A . ) Socledad A g r l c o l a "Pucala" L t d a . , S . A . ( S t o c k h o l d e r s o r Comm. Bank) 9 0 7 t $ Holl) Ferreyros y C l a . S . Enrique Ferreyros $ bodies Aluminum e x t r u s i o n H a n u f a c t u r a de H e t a l e s y A l u m l n l o 20,800,000.0C 100.439.437.82 280.000.00 12Bus $ dlesel «6fl S. E.puyD. t t (Gastor A s p h a l t p l a n t and e q u i p m e n t (Barber-Greene A m e r i c a s . I n c . Concrete batching p l a n t Bus c h a s s i s w i t h Enrique A ™ - plant fi<>0 Nlcollnl ^SKES."" to CO 00 producing mach. Sulphuric acid y Metales, 2/ 1-57 8- 774 A. 811- 798 Cla. A-m-J/ STATU, or LOAN. continued S o u t h e r n P e r u Copper C o r p o r a t i o n Banco C e n t r a l de R e s e r v e d e l P e r u ( R e p u b l i c o f Peru) Republic o f D«w (E.ponS.T^..^, Uxomunuo BALAKCX 16,000.00 13.000.00 13.000.00 18.922.29 42.941.43 15,441.09 558.91 52.694.95 9.168.77 1.526.39 6.433.84 9,007.25 813.96 2-28-58 225.000.00 420.00 56,145.00 168,435.00 7,606.50 51,700.00 40.00 51,660.00 19,372.50 32,287.50 2,838.47 53.300.00 20.00 53.280.00 6.660.00 46.620.00 1.234.93 224,580.00 70.000.00 IXPOtT-IMKJtT BANK OF WASHINGTON 28. STATEMENT OF LOANS A N D AUTHORIZED CREDITS BtZZLT^ZZS "VT (E, F NANC,D ' „.„, D« *™»±/2/ C ^K£5SS."» Amou« Expi^D.* December 31. 1957. "ts&Er iS&Ek .Up-d OMUdu* SsF cijXgHTUBUC LuTATO " " LATIN AMERICA - Peru - continued Clam shell excavator 7-14-55 $ 664-1 24.000.00 $ 723.00 Warehouse truck $ 5 $ 23.277.00 $ 737-i * 3.900.00 3.900.00 3.900.00 741.581.60 168.918.33 3-31-58 572.663.27 6-27-57 73.400.00 2-28-58 31.102.43 31.102.43 1-11-57 30.000.00 42.297.57 Ext 11.230.57 9-30-57 18.769.43 18.769.43 23.600.37 23.600.37 165.20 30.000.00 1-31-58 1.019.462.35 60.058.426.38 3.417.838.95 800.100.00 6.400.800.00 Agricultural and Industrial 11*6-: 1.029.19 3- 8-56 Fire engines and pumps La Comerclal Intportadora, S. A. 7.759.00 $ 6- 6-57 Tractors and generators Enrique Ferreyros I Cla., S. A. 15.518.00 t 241.581.60 331.081.67 12.995.65 500.000.00 and Chemical Corp.) A. y F. Wlese, S. A. Fire fighting equipment Water pumps ( related equip. Juan Hagot, S. A. Turbine and centrifugal pump 15.000.00 Total 139.225.814.37 192.167.94 77.955.757.70 60.787.090.30 290.798.43 w w o Uruquay: 7.200.900.00 Do 331 Do 345 Do 345. do 2- 2-43 1S9.600.00 2- 2-43 19,840.400.00 C. A. 102.200.00 1.996.31 2,066.600.00 68.800.00 439,917.56 6.934.500.00 7,723,200.00 6,571,800.00 3,239,147.55 4,094,468.57 4.094,468.57 Tractors and power units 11-10-55 587-1 Total , VeneiueIa Hotel Tamanaco, 57.400.00 2.135.400.00 159.600.00 17.705.000.00 279,001.10 2,118,232.58 4,799,100.00 110.000.00 110.000.00 32.110.000.00 17.815.000.00 7,360,500.00 E o ft Goods and services for C. A. la Electrlcldad de Caracas Electrical equipment 469 Republic of Venezuela, 680,668.29 Quarlco River Dam Constructlc Cla. Anonlma Venezolana de 8M Lorenzo Bustlllos M. 1 Cla. Sues. auo 4,882.48 Industrial trailers Lorenzo Bustlllos H. t Cla. Sues. tools (Inqersol1-Rand Co.) 10-11-56 Wood I metal working mach. (John D. Williams Export Con .) 10-11-56 Generators t welding equip. 10-11-56 (Hobart Brothers) Industrial trailers "SImar" Socledades Industrlales Asphalt batching plant Do 84| Do 84? Do 843 84.34 6,365.61 3,182.80 6.250.00 2.381.69 3.868.31 2.578.88 1.289.43 210.64 3.450.00 385.30 3.064.70 1.532.36 1.532.34 115.83 6.100.00 1.536.90 4.563.10 1.521.03 3.042.07 156.86 286.85 1.308.87 847 Descuento) to See footnotes on page j u . CO zo EXPOrMMPOKT BANK OF WASHINGTON 29 STATEMENT OF LOANS AND AUTHORIZED CREDITS c mr '£ZZLT££Z* LATIN AMI RICA - Venezuela - Do Venezolanas, F"".*"" k ta» I W \j y *TSKS£r» Amoon, Expiry Date luSbS. ^EftKr Repud Ouuundit^ LmrTATO ,N ^^TODT/C' ^25?? 00 o o continue 896 Aerovlas (F December 31. 1957. Heavy construction and earth moving equipment (LeTourneau-Westinghouse Co. 897 2-28-57 % 32.599.26 t 8,399.17 2-28-57 I9.5A0.9G 3,202.60 5-16-57 1.200.000.00 $ i 24.200.09 $ i 12.599.26 S 8.040.90 10.338.30 11.600.81 S 2.297.40 674.51 s i 263.40 Aircraft and spare parts S.A.(AVENSA) 918 1.200,000.00 1-31-59 17,500.00 5-11-58 3.500,000.00 7-31-59 Airplane Corp.) Crushing equipment t asphalt 6-14-57 C . A . V e n e z o l a n a de P u l p a y Papel C"la. A n o n . La de C a r a c a s Electrlcldad C . A d r a n z a *• C i a . . S . A . S . A . Eugene C a p u c l o y C l a . , S o c l e d i d Tecnlca y Comerclal S . A . Eugene C a p u c l o y C l a . 9?6 6-14-57 3.500.000.00 620-1 5-23-55 184.100.00 2.758.78 181.341.22 72.536.48 8-11-55 94.488.59 75.000.00 19.488.59 19.488.59 3- 9-56 98.801.35 _2_.6i'.'0 8-30-57 65.000.00 19.685.71 . 1-19-56 115,028.40 Construction of paper mill Steam boiler (Babcock (Wilcox Co.) Tractors * related equipment 6 0 9 - 1 (Massey-Harrls-Ferquson.lnc. Tractors and earthmovers 5 8 0 - ; (LeTourneau-Westinghouse Co. D r i l l s , air compressors and 5 8 0 - 8 related equipment (LeTourneau-Westinghouse Co. Power shovels, draglInas.etc (Baldwln-Llme-Hamllton Corp.) Truck and Industrial scales 6 4 2 - 2 (Fairbanks. Horse t Co.) 617-1 Comanll. C. A . 37.500.00 9-10-57 Total 84 r 97l.64 31.000.00 31.000.00 17.071,605.50 286.960.76 108.804.74 9,162.94 376.62 -I-1LT5L 96.150.25 18.801.35 77.348.90 1,452.73 i^3J-58 <»5.314.29 340.70 44.971.59 6.27 JfcJfc58_ 30,056.76 15^028.40 15.028.16 1,428.55 4.295.298.18 9.782.421.12 2.157.415.17 1.219,449.22 115.037.47 63.328.09 4.844.808.45 7.644.537.91 bd 80.000.00 o 100,000.00 3 a ••71 559 American t Foreign Power 939 Total Total Latin See f o o t n o t e s on page America 30. do Construction programs of subsidiaries 2-15-50 1,821,616.92 5- 6-54 1,054,457.55 8-22-57 1,451,195.09 6-10-58 48,804.91 2,919,420.08 25.000.000.00 II.000.000.00 12-31-59 14.000.000.00 29.878.074.47 2.939.420.08 12.451.195.09 14.000.000.00 «7.459.30 386.945.01 2.237.251.203.48 101.457.426.33 663.964.821.97 1.392.614.635.14 79.214.J20.04 508.610.229.25 1.500.000.00 51.709.38 1.672.67 14.000.000.00 134.083.34 14,100.514.29 1*2.779.« 963.218.725.91 213,546.901.64 o 103.290.910.75 EXPORT-IMPORT BANK OF W A S H I N G T O N 30. STATEMENT OF LOANS AND AUTHORIZED CREDITS %-r Srr^r^^" i E . , « . F r * T .h D«c i * — • ! / if ^s^r- A»™. E.p.ry D.K £t£l± D December 3 1 , Rcf-d ",bEi6§!ir OUUu»di«« '€" u °^vH£™ 1957, L'»™.o- OCEANIA State of South Equipment Australia for uranium mining $ $ 5.937.509.27 $ $ 1.941.565.52 $ 3.995.943.75 $ 655.030.39 $ $ New Z e a l a n d : Materials, equip.,t serv.,for 2-11-54 556 Agricultural and 16.000.000.00 9- 1-55 96.554.48 208.507.11 \J Total participation Total authorizations I n some c a s e s c e r t a i n In c r e d i t s by o t o 88.507.11 23.445.52 1.849.49 2.038,507.11 11,073,445.52 809,759.46 807.909.97 16.208.507.11 96.554.48 13.032.562.93 22,146,016.18 1,000,000.00 96,554.48 18.970,072.20 79,389.70 3,980,072.63 15,069.389.27 1.464,789.85 5,879,458,186.22 184,872.755.95 1,431.729.622.75 4.173.144,708.76 89,711,098.76 1.278.313.337.70 2,984,542.469.82 729.168,762.52 2.869.564.6^1.52 1.19J.l4l.901.85 2.984,542,469.82 833.398,188.61 210.395.363.90 :redlt 11.050.000.00 79.389.70 79.389.70 8.959.418.211.64 segments have b e a n f u l l y 3-31-58 3.000.000.00 8.749.022.847.74 1.377.216,659.80 Add: 1.950.000.00 32.562.93 13.000.000.00 3.000.000,00 Industrial 578-7 1.677.220.757.67 1.284.021.615.28 1.431.729.622.75 5,'t57.166,344.04 482,910,221.15 2.955.534.095.37 120.000.00 o 104.229.426.09 144.794.806.13 3 Q repaid red I t 2J 2/ Each c r e d i t a u t h o r i z e d on a extent principal that Interest I s compounded Is revo repaid quarterly >asls Is limited > d l t becomes t o a maximum reavallabia. ided t o a u t h o r i z e d credits. CO o £ x £ £ H I £ £. £ R J L £ 1 I i I H £ i - H N 1 1 £ £ S T A J i i CAPITAL I M I f H n THE FOLLOWING PAGES NOS. 32 to 35 REFLECT EXPORTER CREDIT LINES AND TRANSACTIONS THEREUNDER. THE LINES ARE NOT INCLUDED IN TOTAL AUTHORIZATIONS OF THE BANK AND THEY ARE AVAILABLE ONLY TO THE EXTENT THAT THE BANK AUTHORIZES SPECIFIC OR REVOLVING CREDITS TO FINANCE TRANSACTIONS THEREUNDER COVERING EXPORT SALES OF U. S. CAPITAL EQUIPMENT. DETAILS OF THE TRANSACTIONS ARE SHOWN IN THE STATEMENT OF LOANS AND AUTHORIZED CREDITS UNDER THE SPECIFIC COUNTRIES TO WHICH THEY APPLY. TRANSACTIONS UNDER THE CREDIT LINES ARE INCLUDED IN TOTAL AUTHORIZATIONS AND ARE CHARGEABLE AGAINST THE BANK'S LENDING AUTHORITY. XPOtT-IMPOUT BANK O F WASHINGTON EXPORTER CREDIT 32. LINES December 3 1 . 1 9 5 7 . The O l i v e r N M « or E X F C T E . °as?T Corporation S78 579 leTourneau-Westlnqhouse Worthlnqton Co. Corporation Barber-Sreene 580 581 TotXSZS, T r a c t o r s and equipment D.« Steam q e n e r a t l n q equipment Heavy e a r t h m o v i n g e q u i p m e n t and r e l a t e d I t e m s Power p l a n t s ; p u m p i n g a n d e l e c t r i c a l equipment Paving and c o n s t r u c t i o n W Company 587 A^u,., •nSESS. *JL* Expiry D . * An™-. JkStl A g r i c u l t u r a l machinery, Implements, t r e l a t e d items 11-10-54 $ '•.132.385.71 $ 11-10-54 6.177.652.50 11-18-54 11-18-54 3.699.587.92 4-3O-58 1.641.500.00 *t. 5 3 7 . 1 9 6 . 3 0 4-30-58 3.455.224.36 597.051.35 3,040,796.84 7-31-58 379.090.71 '•.377.618.81 626.500.00 3.752.657.50 5-31-58 400.381.31 778,507.11 $ $ 50,145.47 $ 1.469.929.35 11-26-54 567.550.00 170.100.00 482.450.00 5-31-58 85.100.00 12-16-54 2.586.576.93 "+56.576-93 2,280.000.00 5-31-58 69.230.06 136,097.84 $ Company 588 Construction E a r t h and m a t e r i a l s 593 Air 599 Farm m a c h i n e r y a n d Slashing and o t h e r compressors Implements textile 600 equipment1"5 754.556.62 575.000.00 12-30-54 225.000.00 1 - 6-55 150.000.00 1-27-55 762.468.79 1-27-55 55.000.00 274.700.00 ""* w o r k i n g and 7-31-58 575.000.00 E x t ens i o n p e n I n g 575.000.00 8-31-56 132.385.71 $ '•"^SET"" 53.857.60 S TSIlSSU^ESu'™ 4.534.48 $ LmrrvnoN ^TESSJJT" 345.709.32 $ 4.000.000.00 67.248.39 1.043.80 6.000.000.00 177.652.50 1.347.803.70 80.224.36 298.866.35 10.965.79 182.623.83 3.375.000.00 224,580.00 377.618.81 247.3W.50 23.055.32 1.538.69 4.000.000.00 42.550.00 42.550.00 3.545.29 85,000.00 525.000.00 86,576.93 27,278.32 27.278.30 25.59^.56 39.9I*».95 2.257.79 150.000.00 2,500.000.00 2.567.70 95.143.38 42.941.43 27.278.30 700.000.00 575.000.00 moving 591 Metal 12-16-54 12-30-54 and pumping 590 B a t s o n - l o o k Company U n i t e d E n g i n e e r i n g and Foundry " oTl^r° 55.526.85 67,193.27 The Thew S h o v e l p, , agricultural " 170.000.00 23.958.02 '.25.000.00 5-31-58 150.000.00 5-31-58 746.808.64 5-31-58 55.000.00 6-30-58 , x , l , , r v , r- -.oo 0 0 225.000.00 8.297.87 750.000,00 150.000.00 6.382.80 9.277.35 12.468.79 3,191.36 677.96 m td 55,000.00 o 5-31-58 forming 250.000.00 2-10-55 607 Agricultural and o t h e r Agricultural and 60R dredging Truck Company 417,988.59 2-17-55 594,860.50 75,000.00 2-24-55 450,000.00 2-24-55 225,000.00 Textlle machinery 2-24-55 1,500,000.00 619 Motor t r u c k s and t r a i l e r s E l e c t r i c power and I n d u s t r i a l steam b o i l e r s 3- 3-55 318,641.22 126,000.00 3 - 3-55 2.272,536.48 184,100.00 620 629 6V 615 636 Baldwln-Llma-Haml1 ton 5.619.488.59 613 6?5 Company 5-31-58 6-30-58 450.000.00 2-17-55 614 6?4 Blaw-Knox 45O.OOO.OO 5.544.000.00 2-17-55 Road b u i l d i n g a n d m a i n t e n a n c e equipment Asphalt mixing plants,paving and r e l a t e d equipment 61? The B a b c o c k & Wi1 c o x Company S p a r k l e r M a n u f a c t u r i n g Company 700,000.00 Corporation 637 6^8 6Vr 640 641 9-30-58 26,500.00 700,000.00 5,600.000.00 450.000.00 19.488.59 19.488.59 376.62 342.500.00 74.860.50 2.124.61 139.50 machinery, 610 The H u b e r - W a r c o Company o r Kenworth Motor 26.500.00 Industrial 609 Dredges, 700,000.00 f andUequI>^mentre " t e r S M a t e r i a l s h a n d l i n g equipment; c o n s t r u c t i o n machinery T u r b i n e t y p e v e r t i c a l pumps C o n s t r u c t i o n , s t e e l , and o t h e r I n d u s t r i a l equipment Heavy m a t e r i a l h a n d l i n g equipment and systems T r a c t o r drawn f a r m equipment Construction equipment, a t t a c h m e n t s , and accessories G r a i n d r y i n g and h a n d l i n g equipment and r e l a t e d Items Agricultural Implements, motor t r u c k s , and machinery Heavy e q u i p m e n t f o r c o n s t r u c t i o n and pavlnq Paper m i l l m a c h i n e r y and 520,000.00 7-31-58 450^000.00 8-31-58 74.860.50 6-30-58 2 2 5 , 0 0 0 00 E x t s n s l o n pen l i n g 1 , 5 0 0 , 0 0 0 00 6-30-57 300,000 00 5-31-58 Ext 2 , 0 9 1 . 1 9 5 26 ' 6 - 3 0 - 5 7 3-10-55 45.000.00 4 5 . 0 0 0 00 7-31-58 3-10-55 1.500.000.00 1,500.000 00 6-30-58 75.000 00 6-30-53 520.000.00 450,000.00 18,641.22 18,641.22 181,341.22 72,536.48 187.05 108,804.74 9,162.94 j 2 2 5 , 0 0 0 00 ! 1 L 5 0 0 , 0 0 0 00 3 0 0 , 0 0 0 00 107.358.78 2 , 2 0 0 , 0 0 0 00 2,758.78j 4 5 . 0 0 0 00 1 3-17-55 75.000.00 3-17-55 2,408,037.12 12,580.00 2,395,806 72 8-31-58 3 5 0 , 0 0 0 00 8-31-58 2 5 . 0 0 0 00 7-3'l-58 3-24-55 350,000.00 J-24^55 137.378.90 112.378.90 Jrlbi5_ 1.615.028.40 321.028.40 1 . 3 8 0 , 0 0 0 00 10-31-58 Ext •nslon pending 135.000 6-30-57 1 3-31-55 135.000.00 3-31-55 10.019.123.01 169.123.01 9 . 8 5 0 . 0 0 0 00 6-30-58 3-31-55 570.328.00 271,328.00 4 7 5 , 0 0 0 00 8-31-58 350.000.00 7-31-58 3-31-55 | 1 . 5 0 0 . 0 0 0 00 7 5 . 0 0 0 00 12,230.40 8,037.12 4,193.28 524.63 11,909.80 37.378.90 13,464.60 1,933.57 30.056.76 15,028.40 15.028.36 1,428.55 114,514.24 19.123.01 95.391.23 1.250.67 20,328.00 4.353.75 1,151.** 349.60 2 , 4 0 0 , 0 0 0 00 3 5 0 . 0 0 0 00 38,933.70 1 0 0 . 0 0 0 00 86.000.00 1 . 6 0 0 . 0 0 0 00 135.000.00 24,681.75 10.000.000.00 176,000.00 550.000.00 350.000.00 CO o 00 EXPOKT-tMKMT BANK OF 00 WASHINGTON 33. EXPORTER CREDIT LINES December 3 1 . NA 1 or EX " f,m Twites, "KT '°,Tl* Diesel F a i r b a n k s , H o r s e ( Company and engines, D.U Anx™, S Motor T^SSSS- Aoxx.„, Exp^D.* s:zzro .."fewR-l E.,^h.„k generators. t r u c k s and 2.100,000.00 $ 2.100,000.00 -E-31-58. J i "" a ^?r.r ND,N ° associated l EE%™£ CA Rt ?."w™„rD o a.™™'"" $ $ s ._ p 1957. 643 General Motors 649 4- 7-55 650 4- 7-55 900.000.00 4- 7-55 10.012,108.72 296.108.72 9.900.O00.OO 4- 7-55 7.624,591.24 464.591.24 7.200.000,00 Overseas Transportation, power C. A. Agricultural Inc. 1 Soap and f a t The Emsco M a n u f a c t u r i n g Company 657 S a b l n S t . G e r m a i n «• Assoc la t e s . l n c The M a r l o n Power S h o v e l Company and s u b s i d i a r y Cummins E n g i n e C o . , I n c . » subsidiary V e r t i c a l t u r b i n e and a x i a l f l o w p r o p e l l e r pumps B l a s t c l e a n i n g e q u i p m e n t and 660 machinery^ 661 and equljment hand 11nq e q u i p m e n t D i e s e l and gas e n g i n e s . 663 664 665 The G a l l o n I r o n Works ( M f o . Co. attachments and accessories 666 and 400,000.00 Ext ens ion pen l i n g 400,000.00 6-30-57 4-21-55 100,000.00 100,000.00 4-21-55 352.725.27 16^400.00 4-21-55 ^28-5i_ 1.200.000.00 1,887,000.00 847.761.28 82,000.00 1,887,000.00 173.761.28 4-28-55 1.605,395.30 458.500.00 1.378.322.79 1-31-59 250.000.00 24.000.00 250,000.00 8-31-58 879.801.00 280,203.20 761.028.96 7-31-58 118.772.04 10-31-58 8,380.10 * r28-55, •JbM-55Water, 678 O l i v e r M a c h i n e r y Company C o n t i n e n t a l Copper ( S t e e l Industries. Inc. 679 The T . L . S m i t h Company Westlnghouse A i r Brake 681 680 682 and Co., E a r t h moving equipment C o n c r e t e m i x e r s and r e l a t e d equipment Railroad construction, mlnInq. and- d r l 11 I n q e q u i p m e n t C r u s h i n g and t 16,351.56 1.200.000.00 9-30-58 ( 3 4 , 1 3 8 . 6 3 Canceled) 7-31-58 674.000.00 985,690.20 114.779.53 5,036,437.05 mjm^S- Heavy m a c h i n e t o o l s T r u c k and t r a c t o r e q u i p m e n t , 686 Power e x c a v a t o r s , 717,395.89 47.761.28 1,135,465.48 67.018.25 63,962.64 19,801.00 98.971.04 4.063.56 36,437.05 37.944.79 100,000.00 48.44 350,000.00 82.000.00 1.200,000,00 Non-Revolving 800.000.00 2.190.35 W H O 173.072.51 3 24.000.00 161.431.16 66,001.74 2 o 8-31-58 5-16-55 150j_000.00 150,000.00 10-31-58 150,000.00 5-16-55 475,000.00 475,000.00 12-31-58 475.000.00 10-31-58 775.000.00 5-19-55 775.ooo.oo 775.000.oo 5-19-55 130.000.00 Canceled 130.000.00 5-19-55 325,000,00 325.000.00 8-31-58 5-19-55 85.000.00 85.000.00 12-31-58 85.000.00 5-26-55 6.100.000.00 6.100.000.00 10-31-58 6.100.000.00 5-26-55 1.378.750.00 105.000.00 5-26-55 600.000.00 230.000.00 6- 2-55 800,000.00 6- 2-55 700,000.00 6- 2-55 1.700.000.00 6- 9-55 425.000.00 1.276.322*18. 325.000.00 9-30-58 102.370.62 370,000.00 1-31-58 89.613.00 800,000.00 10-31-58 1.700.000.00 10-31-58 cranes, 687 692 389.72 78.750.00 23,620.62 material 684 685 13,626.29 _S=3J=5B_ I Lewis Machine Tool i 867,171.17 2,725.27 related P a p e r - m a k i n g m a c h i n e r y and component p a r t s P r o - f a b r i c a t e d metal bulldlnqs. etc. Woodworking and p a c k a g i n g 683 Iowa M a n u f a c t u r i n g Glddlngs 400.000.00 _5r-_fc55_ Steam t u r b i n e s &77 I 1 9-30-58 II-3O-58 336,373.71 240,000.00 676 Company, 10.000.000.00 j ..-fc-fc55_ 673 I r o n Works Manufacturing 184,000.00 and 67? Belolt Butter 2.260.01 85,878.49 s e w a g e , and w a s t e Diamond c o r e d r i l l Co. 80.353.14 Industrial 671 Turbine 12,108.72 110.469.73 4-21-55 >28-55 Agricultural De L a v a l 92,461.86 5-31-58 4-14-55 65? Corporation _2ril=58_ processing 654 Wheelabrator 04 825,000.00 653 & Sanger, 41 8-31-58 machinery, 65? Wurster 467.041 .04 900,000.00 genera- 651 John D e e r e , 33.000.00 H a n d l i n g equipment and I n d u s t r i a l rubber equipment 185.000.00 89.613.00 4.126.39 2.629.38 1,300,000.00 a EXPORT-IMPORT BANK OF WASHINGTON EXPORTER CREDIT LINES N««<**»WT« Towmotor C o r p o r a t i o n LINES AUTHORED Cffo,T and ftttES Fork lift trucks, Industrial 6-16-55 693 S 400.000.00 s Aunount S Expiry D.le 400,000.00 1-31-59 120.000.00 6-30-58 10.000,000.00 12-31-58 90,000.00 9-30-57 Road m a i n t e n a n c e and 695 Ford Motor 698 Comoany "«W 700 Universal W i n d i n g Company 701 T r u c k s , t r a c t o r s , and r e l a t e d equipment Centrifugals L related equipment f o r p r o d u c t i o n o f suqar C r a n e s & s t e e l m i l l equipment T e x t i l e e q u i p m e n t and c o i l w l n d l n q machinery 701. Metal fabricated 710 711 S t e e l and w i r e p r o d u c t s processlnq machinery Fork l i f t trucks, Industrial t r a c t o r s , and h o i s t s 716 C r u s h i n g and 722 F r a z a r &• H a n s e n , L t d . G r u e n d l e r C r u s h e r and P u l v e r i z e r Company Proctor and 724 Fruehauf T r a i l e r Company Mine S a f e t y A p p l i a n c e Company H. W. B u t t e r w o r t h «• Sons Company Dresser Lumber m i l l and a g r i c u l t u r a l machinery C r u s h i n g and p u l v e r i z i n g Industries. Inc. I n d u s t r i a l d r y l n q equipment T r u c k s , t r a i l e r s , and t r u c k 725 728 Safety 729 T e x t i l e machinery P o u l t r y r a i s i n g and t o b a c c o c u r l n q equipment Engines, compressors, w e l l d r l 1 l l n q equipment Food and f e e d p r o c e s s i n g T)0 7V equipment 733 7V» B u f f a l o F o r g e Company and 735 7^6 I n d u s t r i a l h e a t i n g and a i r c o n d i t i o n i n g equipment Weldlnq equipment A g r i c u l t u r a l and c o n s t r u c t i o n 737 Tubular products; 739 Steam c l e a n e r s , a n d 746 equlpment 747 Motor t r u c k s Food p r o c e s s i n g C ^zzzr $ s ""K^TS?" $ 400.000.00 120.000.00 6-23-55 10,000.000.00 6-30-55 105,000.00 6-30-55 400.000.00 400,000,00 10-31-58 400,000.00 6-30-55 1,100,000.00 15.000.00 120.000.00 10,000.000.00 15.000.00 15.000.00 90.000.00 549.53 1,100.000.00 1,100,000.00 10-31-58 7-55 125.000.00 125.000.00 11-30-58 125,000.00 7-21-55 300.000.00 300.000.00 10-31-58 300,000.00 7-21-55 1.750.000.00 7-21-55 75.000.00 7-21-55 600,000.00 7-21-55 872.643.25 684,500.00 1-31-58 7-28-55 650.000.00 650.000.00 12-31-58 650.000.00 200,000.00 24.300.00 1.750.000.00 1-31-58 51.399.63 2-28-58 600,000.00 11-30-58 191.000.00 8- 4-55 8- 4-55 200.000.00 200,000.00 10-31-58 8- 4-55 250,000.00 250,000.00 11-30-58 8-11-55 65,1*01.22 8-11-55 8-11-55 300,000.00 8-18-55 550.000.00 8-25-55 300.000.00 8-25-55 102.060.00 8-25-55 32.000.00 300.000.00 1.300.000.00 1.750,000.00 23,600.37 23.600.37 165.20 699.63 75.000.00 600,000.00 3.900.00 22,61*3.25 22,643.25 3,900.00 318.42 2,856.75 850.000.00 300,000.00 6,735.60 6,200.00 315.000.00 250,000.00 Canceled 30,567.89 293,264.40 1-31-59 550,000.00 1-31-59 300.000.00 1-31-58 95,880.00 Ext 1,300,000.00 15,1*01.22 15,166.67 1,280.46 1,432.11 snsion p e n d i n g 11-30-57 50,000.00 300.000.00 6,735.60 6,735.60 300.000.00 550,000.00 300.000.00 1-31-58 6.180.00 2,060.00 4,120.00 360.08 20.00 100.000,00 315.000.00 1.300.000.00 ling 11-30-57 9- 1-55 205.000.00 205.000.00 11-30-58 9- 8-55 210.000.00 210.000.00 9-30-58 210.000.00 9- 8-55 450.000.00 450.000.00 450,000.00 1-31-58 9-8-55 100.000.00 100.000.00 1-31-58 9-15-55 10.558.555.24 7.717.900.00 12-31-58 9-15-55 1.000.000.00 1.000,000.00 1-31-58 9-22-55 90,000.00 90,000.00 2-28-58 17U599.75 Ext 800,000.00 1-31-58 3.061.455.24 205.000.00 100.000.00 1.363.132.50 558.555.21* 804,577.26 29.953.00 220.800.00 10,000.000.00 1.000.000.00 90.000.00 generators, 224.363.00 748 'SS" drilling 743 The Elmco C o r p o r a t i o n Mack T r u c k s , I n c . and s ""—^r- materials 723 Schwartz s:?£zm fire-fighting 709 A e t n a - S t a n d a r d E n g i n e e r i n g Company The Y a l e i. Towne M a n u f a c t u r i n g ?m products 70H Motorized $ / AS'Sffi' Ex„!L.k 6-23-55 7- 707 December 3 1 , 1957. AMOUNT DIS.U«,ED BALANCE A v » I L A » L X T£"^« A™™. D«« 57.813.00 1*9.107.25 24,363.00 lng 9-22-55 800.000.00 9-29-55 2,870,036.34 1.306,714.97 2,013.662.29 1-31-58 618,309.52 120,036.34 498^273.18 17.991.94 450,340.92 2.750,000.00 1,300.675.00 32,700.00 1.268.650.00 2-28-58 20.79^.43 675.00 20,119.43 65.72 675.00 1.300.000.00 11-30-56 800.000.00 and CO EXPOftT-MPOtT BANK Of WASHINGTON 35. EXPORTER CREDIT LINES N»Uio»Ex».T« C W ^ = A"»« D.« Construction equipment, and 10-20-55 7"?o $ 305.288.50 $ 10-27-55 1.500.000.00 12- 1-55 300.000.00 Ti* 12- 8-55 400.000.00 76? 12-23-55 150.000.00 T£ZZZ» 184,000.00 $ 660.000.00 Industrial alr-conditlonlng Pan American Trade Development 763 Amoun, 121.717.50 E.„,yD.« December 3t. 1 ? 5 7 . E»°L„ k 1-31-58 ? 93.111.00 $ A?KS 44,460.00 $ "•T^r45,288.50 $ p ,o - '£?r N r° , N C 92.282.50 $ C TxZZZZ'ZSZJ™ 4.893.96 % ~zzz£r 429.00 $ 660.000.00 1.500.000.00 1-31-58 Ext ens Ion pen 300.000.00 2-28-57 L,M„«T,ON 260.000.00 1.500.000 00 300,000 00 400.000 00 00 400.000.00 Ext 150.000.00 9-30-57 150,000 250.000.00 4-30-58 250.000 00 4-30-58 175.000 00 Agricultural and Industrial 2-28-57 ling Towboats, barges, and 300.000 00 Goulds Pumps. Incorporated 768 Water systems and pumps 1-26-56 300.000.00 300.000.00 5-31-58 300.000 00 Pratt ( Whitney Co., Inc. 3-22-56 400.000.00 400,000.00 5-31-58 400.000 00 Shanzer Hanufacturlnq Company 779 Machine tools and equipment Elevating, conveying, and 7»7 drylnq machinery 4-19-56 50.000.00 Canceled 50.000 00 Jacuzzi Brothers. Inc. 7»«> Water pumplnq equipment 5- 3-56 300,000.00 300,000 00 790 Trucks and related equipment 5- 3-56 320.000.00 5- '•-56 110.000.00 792 795 45.000.00 60.000.00 15.000.00 7-31-58 320.000.00 6-30-58 320.000 00 50.000.00 9-30-58 110.000 00 5-10-56 250.000.00 250.000.00 6-30-58 250.000 00 5-31-56 300.000,00 300.000.00 6-30-58 300.000 00 7-20-56 10.000.000.00 9-14-56 184,412.23 99.700.00 JLL-_8=56_ 685f000.00 232.000.00 1-29-57 1*00,000.00 16.850.00 381.150.00 2-28-58 1-29-57 21*0,000.00 38,000.00 202,000.00 2-28-58 240.000.00 Electrical equipment and 8?8. 270,000.00 o 10.000.000.00 JIr2£r58 177.7 Ext 89.632.31 11-30-57 94,779.92 19.412.23 75.367.69 469.11 10.000.000 00 4,920.08 165.000 00 232.000.00 685.000 00 400.000 00 to O Cotton ginning machinery. 685.000,00^ 12- 1-58 Purification * conditioning 885 Equipment for manufacturing flfift Heat treating equipment, and 2-28-58 888 Water pump systems and 1,000,000.00 958 Al1ls-Chalmer$ Hanufacturlnq Co. 961 966 Agricultural equipment Agricultural, construction. Industrial equipment, etc. Hydraulic turbines, pumps. 10-31-57 200.000.00 11-14-57 10.000,000.00 12-10-57 18,900.OOj 300.000.00 180.067,460.58 Total active exporter credit lit 125.250.00 17.708.540.61 214.833.33 4.700.764.30 179.852.627.25 13.007,776.31 74.750.00 11-30-58 200,000.00 9.981,100.00 11-30-58 10,000,000.00 300.000.00 12-31-58 166,844,850.94 300.000.00 6,691,055.74 2,029,171.93 3,117.856.47 5,602,371.20 277.382.11 4,700.764.30 175.780,000.00 214.833.33 166,844,850.94 175,565,166.67 to I 36. EXPORT-IMPORT BANK OF WASHINGTON SUMMARY STATEMENT OF LOANS ANfr AUTHORIZED CREDITS December 31, 1957. $8,959,418,211,64 Authorizations Authorizations taken over by others, without recourse to Eximbank, cumulative: Latin America Europe Area $ 28,376,568.27 168,018,795.63 14.000.000.00 Asia 210,395,363.90 1,377,216,659.80 Cancellations and expirations Export-Import Bank Funds $482,910,221.15 5,940,076,565.19 Repayments 2,520,759,667.38 434,774,427.99 2,955,534,095.37 Outstanding loans 2,936,406,676.66 48,135,793.16 2,984,542,469.82 Authorizations not disbursed 1,431,729,622.75 Total of outstanding loans and balance of authorizations not disbursed 4,416,272,092.57 Lending authority assigned by Bank under provisions of Public Law 30 - 83rd Congress - for cotton insurance Uncommitted lending authority o Disb, by others at EIB Risk $5,457,166,344.04 Di sbursements W o 50,000,000.00 533,727,907.43 CO O EXPORT-IMPORT BANK O F W A S H I N G T O N 37. STATEMENT OF LOANS A N D AUTHORIZED CREDITS December 3 1 . 1 9 5 7 . CERTIFIED BY OPA AND DMPA C VS" < G - " ' " ~ " •—">«•> AFRICA Rhodesia Congo B o r d e r Power DP-6 D.« , E . ^ T ™ — , Power f a c i l i t i e s for p r o d u c t i o n o f copper the & cobal A — "TS^oV" $ *»»«« E.p.ryD... iSEbXk $ 22.400.000.00 R^d ^Ei&SlST Ouuund.n, ^^r'H^8' s 1- B-53 $ 22.400.000.00 4- 2-53 5.500.000.00 5.500.000.00 5.500.000.00 6-17-53 540.000.00 540.000.00 540.000.00 68.659.08 6.040.000.00 6.040.000.00 6.040.000.00 549.881.70 $ 4.321.472.93 $ 18.078.527.07 $ GO O 00 L».rrvn„» 2.432.731.46 CANADA Equipment Molybdenite Corporation Canada. L i m i t e d Total of DP-8 t development cost P r o d u c t i o n o f molybdenum d l s u l p h i d e and b i s m u t h Canada I n d u s t r l a e C o m e r c l o de S. A. 481.222.62 w w Mlnerlos, DP-4 P r o d u c t i o n o f manqanese DP-1 Two s i s a l OP-2 Zinc processing ore 4-52 71.340.795.03 55.059.807.43 16.280.987.60 16.000.000.00 16.000.000.00 55.340.795.03 39.059.807.43 16.280.987.60 7.078.548.78 7.078.548.78 48.262.246.25 31.981.258.65 16.280.987.60 5.901.689.51 3.921.426.29 1.980.263.22 1-10-52 202,260.00 141.605.00 60.655.00 28.733.40 31.921.60 1,981.21 6-19-52 337.500.00 117.500.00 117,500.00 9- o Cotes de F e r Corp. processing plants Mexico: Zinc N a c l o n a l . S. Total A. Latin plant America 49,951.10 16.820.747.60 141.605.00 16,679.142.60 166,211.40 16.312,909.20 45.260,747.60 141.605.00 45.119.142.60 10,727,706.31 14,391,416.27 § 2.032.197.53 w w P r o d u c t i o n o f c o p p e r and Canceled 4 - 2 4 - 5 3 British East A f r i c a : Kllembe M i n e s . Uganda Ltd. DP-3 P r o d u c t i o n o f copper cobalt and 8-21-52 7.500,000.00 7.500.000.00 Total terminated 28.500.000.00 28.500.000.00 Grand Totals 73.760.747.60 28.64J.6O5.O0 Canceled 45.119.142.60 10.727.706.33 34.391.436.27 5.014.810.69 11-12-53 38. EXPORT-IMPORT BANK OF WASHINGTON December 31, 1957. Liquidation of loans transferred as of June 30, 1954 from Reconstruction Finance Corporation under Reorganization Plan No. 2 of 1954 Description of Obligations Republic of Ecuador RFC-1 Promissory Note dated 3-30-42 for $124,626.58 Newfoundland Railway RFC-2 Promissory Notes of various dates for $1,944,355,50 Banco de .Credfto da Borracha RFC-3 (Amazon Credit Bank of Brazil) 60,000 shares of capita] stock Par value 60,000,000 Brazilian Cruzeiros Republic of the Philippines RFC-4 2 Promissory Notes of various dates for $60,000,000.00 German Bonds and Stocks RFC-5 German Government and Municipalities External Loans and Mortgage bonds and stocks charged off by R.F.C. Totals Outstanding Balance June 30, 1954 $ 53,258.24 427,098.00 3,000,000.00 42,000,000.00 1.00* $45,480,357.24 Repayments $ 25,217.30 427,098.00 -P- Unpaid Balance $ Income Collected 28,040.94 -03,000,000.00 21,000,000.00 21,000,000.00 31,468.42 1.00 $21,483,783.72 $24,028,041.94 $ O 9,217.93 18,751.69 CEILI] Obi Igor Credit No. -0- 2,891,301.39 -0- i 8 $2,919,271.01 * Securities charged off by R.F.C. carried at $1.00 Book value at time of transfer - Exlmbank has collected $31,468.42 In partial liquidation thereof. 00 o CO 39. December 3 1 , 1957. 310 UN INSURANCE ON EXPORTS - UNDER PUBLIC LAW 3 0 , 8 3 r d CONGRESS Cotton Country P o H c l e s V a l i dated No. o f No. o f Amount Bales Policies P o l i c i e s Extended No. o f No. o f Bales Policies Amount Expi r a t i o n s No. o f Policies Amount No. o f Bales U n e x p i r e d P o l i c; I e s No. o f U No. o f Amount ~ Policies Bales ASIA India Japan Total Asia 1 _L2 20 7,929 _o~ _ii 8,118 59 189 37,392 $ _J 1,393,743 $ -03.234.081 -018.646 1 3,234,081 18,646 68 $ 37,392 ^lOE.^O 189 2?, 77* 4,142,922 23,961 -011 -0$ _ 484,902 -02,80? 484,902 2,803 w EUROPE ]/ O 3,086,331 79,130 366,413 4,112,987 -0-0-010.527.326 -017,851 550 1,700 23,335 -0-0-0~ 60.290 156 7 4 495 18 23 182 5 10 1 446 3,796,938 161,774 76,256 18,538,380 502,245 857,964 8,149,389 166,411 389,874 37,754 18.692.433 23,190 971 449 106,948 3,087 4,041 47,103 1.035 2,328 200 107.010 11 -0-032 -07 14 -0-0-0- 214,862 -0-01,258,414 -0139,174 606,795 -0-0-0- 583 19,522,806 111,788 1,347 51,369,418 296,362 113 4,049,636 23,670 642 22,756,887 130,434 1,415 55,512,340 320,323 124 4,534,538 26,473 16,527 971 449 96,502 2,537 3,241 27,260 1,035 2,328 200 9,995.^8 57,191* 66 -0-0110 6 9 122 -0-0-02Z0 877 35,896,248 208,244 897 37,289,991 216,362 Belgium Denmark France Germany, Western G reece Italy Netherlands Norway Sweden Switzerland United Kingdom 101 7 4 417 12 21 74 5 10 1 225 2,661,181 161,774 76,256 16,710,463 423,115 630,725 4,643,197 166,411 389,874 37,754 Total Europe Grand Total 1,350,619 -0- 8,062 _o- -o- Maximum allowed t o any one Country $10,000,000 SUMMARY Public Law 30, 83rd Congress - Insurance Authorizations Amount a l l o t t e d to Cotton Program $50,000,000 Less: Unexpired P o l i c i e s - cotton 4.534.538 $4^.46,5.462 $100,000,000 1,399 -0-07,405 -0900 3,492 -0-0- _o10.474 & O E X P O R T - I M P O R T B A N K OF W A S H I N G T O N Loans in default, fully reserved on books, and losses charged off, as of Dec. 31, 1957 Loan No. Country Brazil Mexico Poland Portuguese West Africa Uruguay Venezuela Miscellaneous Do ._. _. ._ 233 338 141 319 333 441 187 187 Date declared in default Borrower May 16,1945 American-Brazilian Corp. Dec. 31,1955 Fred Leighton, Inc~- __ Mar. 27,1940 Account 4140: Unconverted Dutch florins _ Dec. 6,1946 Chas. B. McDaniel, Jr _ do._ Talleres Graficos Sur, S. A S. & S. Construction Co. de Venezuela, C. A July 3,1952 John F. Fitzgerald, Jr_. __ Dec. 10,1947 Home Plan Corp ._ .. . . _ . __ Dec. 30,1944 Total Original amount in default Recoveries of principal $142,980.19 72, 485. 55 3,491.96 65, 000.00 66,074.32 278, 345. 72 30, 377.36 1, 218.04 $15, 000.00 15,000.00 2,374.35 33,495.33 56, 567.27 6,000.00 8,064.68 659, 973.14 136, 501. 63 Amount charged off $57,485.55 1,117.61 31, 504.67 9,507.05 272, 345.72 22,312.68 1, 218.04 395,491.32 Balance in default fully reserved $127,980.19 127,980.19 o RECAPITULATION Total defaulted loans Less recoveries of principal. Balance reserved and charged off Source: Office of the Treasurer, Accounts Division. $659,973.14 136, 501.63 523,471.51 a to M i> CO 312 Statement DEBT OETLING INCREASE of loans delinquent as of Dec. 81, 1957, unpaid at Jan. 30, 1958, Import Bank participation only Country Credit No. Bolivia China Colombia Egypt Mexico . . Interest Total 732 395-399 $13,683.90 9, 454, 288. 55 $1,197.34 8, 087,196. 79 $14,881.24 17, 541, 485.34 649-1 666-2 688 10, 986.40 26, 865. 00 18, 320.06 1, 419. 49 2,149. 20 182. 76 12, 405. 89 29,014. 20 18, 502. 82 295 159, 362.20 26,083.89 185, 446.09 457 179,020. 55 820,979. 45 1,000,000. 00 1821 1821 494 1, 596. 50 812. 50 89.80 30.47 375,272.79 1, 686. 30 842. 97 Haiti Honduras Principal 2,162, 899. 79 1, 787, 627.00 98, 958. 43 505 622, 495. 59 523, 537.16 730-1 2 587-1 2 587-1 Peru. Total 1AOFC. 2 Agent. 1, 294. 65 1,030.00 12,178, 424.47 144, 59 60.16 25.76 9, 413. 790. 92 1,174. 59 21, 592, 215. 39 60.16 1, 320. 41 Export- Remarks D u e D e c . 2, 1957. D u e from Oct. 3, 1949 to Oct. 1, 1957. I n t e r e s t h a s n o t b e e n taken into earnings. D u e A p r . 4 a n d Oct. 4, 1957. D u e F e b . 28 a n d A u g . 30, 1957. D u e S e p t . 17, 1956, M a r . 15,1957, a n d Sept. 16, 1957. D u e M a r . 15, 1957, J u n e 15, 1957, a n d Sept. 15, 1957. D u e M a r . 16, 1957 a n d S e p t . 16, 1957. D u e D e c . 27, 1957. D u e D e c . 23, 1957. D u e J u n 30, 1956, D e c . 31, 1956, J u n e 30,1957, a n d D e c . 31,1957. I n t e r e s t h a s n o t been t a k e n into earnings. D u e J u n e 30, 1955 t h r o u g h D e c . 31, 1957. I n t e r e s t from J u n e 30,1955 h a s n o t been t a k e n i n t o earnings. D u e D e c . 30, 1957. D u e D e c . 21,1957. D u e D e c . 30,1957. Statement of delinquent Country Credit No. 1 395 2 396 3 397 *398 8 399 R e p u b l i c of C h i n a do do do __.do.-_ Total - Past-due interest T o t a l delinquencies $535,670.00 $587,044. 26 $1,122,714.26 1,651,618. 55 2,288,000.00 4,329,000.00 650,000.00 756, 541.07 2,111,673.07 4,249,171.24 382, 767.15 2,408,159.62 4,399,673.07 8, 578,171. 24 1,032, 767.15 8,087,196. 79 17,541,485. 34 Disbursements Principal balance $4,243,750.00 $1,871,060.00 2,540,947.55 8,282,219.17 16,650,000.00 1,500,000.00 2,540,947.55 8,282,219.17 16,650,000.00 1,500,000.00 33,216,916.72 30,844,226.72 9,454,288. 55 Delinquent principal » Credit 395: During March 1948 Export-Import Bank entered into an agreement with the Republic of China to assist their purchase of 10 war-built United States coastal-cargo vessels. The terms of the agreement mortgaged the ships to Export-Import Bank. The sale was in accordance with the Merchant Ship Sales Act of 1946. The Nationalist Government of China is operating only 4 of these vessels and the principal and interest repayments are currently paid as to them. 3 of the stated vessels were sold by the Republic of China to the Kingdom of Thailand in November 1951. We extended a loan to the Kingdom of Thailand (credit No. 504) in the amount of $1,071,340 to assist in the financing. Arrearages to Export-Import Bank on the 3 vessels were paid up. Loan service on the 3 vessels is current. 3 vessels were surrendered by their crews to Communist China. The United States district court in Baltimore rendered a judgment in favor of ExportImport Bank on June 12,1957, in the amount of $1,283,211.22 to recover from the insurers the loss of 3 vessels caused by the barratry of the masters and crews. The judgment draws interest at 6 percent from date of entry, June 12, 1957. Appeal has been taken. Payments on the notes as to these three vessels are in arrears. 2 Credit 396: This credit was extended to the Republic of China in February 1946 to assist its recovery from heavy war damages. Loan proceeds were utilized to purchase 12 vessels and 4 tankers from the United States War Shipping Administration. Such loans as of Dec. 31, 1957 Remarks I n s t a l l m e n t s d u e from Oct. 3, 1949, to Oct. 1, 1957, inclusive. Do. Do. Do. Do. I n t e r e s t h a s n o t been t a k e n into earnings. vessels were to be used for transport facilities for China's general cargo trade and to provide movable storage facilities for petroleum products. 3 Credit 397: This credit was established in February 1946 to purchase United States generating equipment and engineering services to replace war-destroyed generators and other facilities relating to power production and distribution. * Credit 398: This credit was established in February 1946 to provide transportation equipment and materials to rehabilitate broken lines in communication and poor railroad facilities resulting from war damage. « Credit 399: This credit was established in March 1946 to provide United States equipment, materials, supplies, and services to rehabilitate coal mines and reestablish maximum production. (Coal production before the war estimated at 34,000,000 tons). w •-3 o g REPUBLIC OF CHINA—TERMINATED CREDITS Disbursed and repaid Interest collected Source: Office of the Treasurer. $167,392,972.13 21,089,647.38 J* g 00 GO 314 DEBT CEILING INCREASE DEPARTMENT OF STATE, INTERNATIONAL COOPERATION ADMINISTRATION DEVELOPMENT LOAN FUND Beginning in 1958, the Mutual Security Act authorized a development loan fund to make loans, credits, or guaranties to nations, organizations, persons, or other entities to encourage the economic development of friendly nations. The fund is to be administered so as to support and encourage private investment and enterprise and is not to compete with private investment capital or the activities of the Export-Import Bank and the International Bank for Reconstruction and Development. Before making any loan, the management of the fund considers the availability of financing from other free-world sources and ascertains the soundness and feasibility of the activity to be financed. The basic financial terms and conditions for the operation of the fund are determined, after consultation with the National Advisory Council on International Monetary and Financial Problems, by a loan committee consisting of the Deputy Under Secretary of State for Economic Affairs, acting as chairman, the Director of the International Cooperation Administration, and the President of the Export-Import Bank. The fund is administered by a manager appointed by the President. Loans for projects which would normally be of a profit-earning nature will be at rates of interest and for maturities comparable to Export-Import Bank terms for similar projects. Loans for other purposes, generally loans to governments for basic investments which do not directly produce revenue such as bridges, dams, or irrigation projects, will be for terms up to 40 years at rates sufficient to cover the current cost of money of similar term to the Treasury. Repayments of principal and interest in either case may be in dollars or in foreign currency, as specified in the loan agreement. As yet the fund has approved no loans. $1.3 billion applications are on hand most of which have been received in recent weeks. These are now under review. Allocations, Jan. 1 to June 30, 1957, under credits previously authorized Purpose Country and obligor Africa—Union of South Africa: West Dreifontein Gold Mining 1Co.1 Doornfontein Gold Mining Co. Latin America: Argentina: Government of Argentina i Brazil: Banco Nacional do Desenvolvimento Economico. Do Do -. Total 1 Increase. Amount Mining equipment, materials, and services. . . . do ._ $291,612 109, 725 Transportation equipment 28, 845, 000 Mobile power equipment 4, 875, 000 .. do do _. 875, 000 1, 464,000 36, 460, 337 21297 0—5S 21 316 DEBT CEILING INCREASE CURRENT CREDITS Credits Authorized Country and Obligor (Guarantors In Parentheses) Credit No. U. S. Products Financed (Participating Exporters in Parentheses) Date | Amount Egypt: F e r t i l i z e r and Chemical Industries of Egypt 429 Equipment for f e r t i l i z e r plant 7-16-47 $ Egyptian Spinners (Barclays Bank D.C.O.) 675 Textile equipment (Whitin Machine Works) 5- 6-55 United Spinning & Weaving Co., S.A.E. 688 Alhadissa Trading Company of Egypt 580-2 do Earth moving equipment (LeTourneau-Westinghouse Co.) 7,250,000.00 60,000.00 6- 9-55 30,000.00 11-10-55 150,000.00 Total 7,490,000.00 1 Ethiopia: Imperial Ethiopian Government 742 A i r c r a f t and aviation f a c i l i t i e s 9-19-55 489 Highway construction 1-11-51 5,000,000.00 Do 497 Water supply and sewerage system 6-14-51 1,350,000.00 Do 596 Highway construction projects 1-20-55 24,000,000.00 1 Liberia: Republic of Liberia Total 15,000,000.00 21 ,350,000.00 Morocco: 587-2 Tractors and implements (Minneapolis-Moline Co.) 9-29-55 70,596.82 531 Railway construction and equipment 8-28-52 17,000,000.00 651-1 Marine diesel engines (Gen. Motors Overseas Corp.) 4-27-56 Revolved 100,000.00 3.274.50 103,274.50 Various mining companies - Unallotted 498 Mining equipment, materials, and services 6-28-51 4,507,134.87 West Rand Consolidated Mines, L t d . 498-A do 1-10-52 3,326,165.52 498-A do 498-B do 498-B do 498-C do 498-C do Etablissements J. P. Frendo Portuguese East Africa Republic of Portugal Portuguese West A f r i c a Casa Americana Comercial, S.A.R.L. Union of South A f r i c a : Do Daggafontein Mines, L t d . Do Blyvooruitzicht Gold Mining Co., Ltd. Do 1,154,148.60 1-10-52 7.851,614.85 1-10-52 6,819,017.49 728,053.86 767,529.33 DEBT CEILING ANP 317 INCREASE LOANS 5 Status of Disbursed Balance p $ 7,250,000.00 $ Loans Repaid 5,075,000.00 $ Repayment Terms Outstanding 2,175,000.00 Int. Principal Installments (Semiannually - Quarterly - Monthly) 3 1/2 6 8 Sa. beg. 7-1-52 2 Sa. beg. 7-1-57 (Nonpayment due to blocked exchange % (Credit canceled) 29,346.45 ($653.55 of c r e d i t canceled) 29,346.45 (Credit canceled) 7,2 79,346.1+5 21,600,000.00 2,1*00,000.00 1,100,000.00 3,900,000.00 1,350,000.00 5,075,000.00 2,400,000.00 5 408,000.00 3,492,000.00 3 1/2 36 Sa. beg. 6 mos. a f t e r date of note 265,200.00 1,084,800.00 3 1/2 36 Sa. beg. 1 y r . a f t e r date of note 800,000.00 l4,200rOQQvOO 800,000.00 15,300,000.00 6,050,000.00 673,200.00 30,596.82 30,596.82 40 Sa. beg. 12-1-57 4 3/4 35 Sa. beg. 30 mos. a f t e r date of note 5,376,800,00 Repaid ($40,000.00 of c r e d i t canceled) 12,452,207.62 12,452,207.62 50,269.18 2,204,346.45 4 40 Sa. beg. 4-15~58 ($4,547,792.38 of c r e d i t canceled) 40 Quar. beg. 3"31-54 53,005.32 3,274.50 49,730.82 3,326,165.52 1,019,094.77 2,307,070.75 4 1,154,148.60 298,495.81 855.652.79 4 36 Quar. beg. 3-31-55 7,851,614.85 2.405,634.77 5,445,980.08 4 40 Quar. beg. 3~31-54 4,507,134.87 728,053.86 177,183.86 550,870.00 4 36 Quar. beg. 3~31-55 6,819,017.49 2,089,260.08 4, 72V,757.41 4 40 Quar. beg. 3~31-54 767,529.33 186,790.92 580,738.41 4 36 Quar. beg. 3~31-55 318 DEBT 0E1ILING INCREA&E 6 CURRENT CREDITS Credits A u t h o r i z e d Credit No. Country and O b l i g o r (Guarantors in Parentheses) Union o f South A f r i c a - 498-D and Do Gold M i n i n g C o . , Ltd. Do R a n d f o n t e i n E s t a t e s Gold M i n i n g Wttwatersrand, Ltd. Co., Do V i r g i n i a Orange F r e e S t a t e G o l d Co., Ltd. Mining Do Vogelstruisbult Gold M i n i n g A r e a s , Ltd. Do Luipaards Vlei Co., L t d . Estate & Gold Mining Do Welkom G o l d M i n i n g C o . , Ltd. Do President Steyn Gold M i n i n g C o . , Ltd. Do Ellaton Gold M i n i n g C o . , Ltd. Do Babrosco Mines (Proprietary) Ltd. Do The A f r i k a n d e r Lease, New K l e r k s d o r p Ltd. Gold E s t a t e s , Ltd. Do Harmony G o l d M i n i n g C o . , Ltd. Do East Champ d ' O r Gold M i n i n g C o . , Government G o l d M i n i n g A r e a s (Modderfontein) Consolidated, Dominion Reefs (Klerksdorp) Ltd. Ltd. Gold M i n i n g C o . , Do Doornfontein Gold M i n i n g C o . , Do J Amount Mining equipment, m a t e r i a l s , and services 1-10-52 $ 9,289,004.01 498-D do 498-E do 498-E do 498-F do 498-F do 498-G do 498-G do 9-28-56 1,285,678.30 498-H do 10-30-52 2,388,379.41 498-H do 498-1 do 11-13-52 4,751,372.63 5-27-53 5,830,688.06 6-24-53 5,828,568.75 498-1 do 498-J do 498-J do 498-K do 498-K do 498-L do 498-L do 498-M do 498-M do 498-N 1,011,310.56 1-10-52 6,661,882.39 9-25-52 11,687,767.36 10-30-52 11,536,976.12 1,236,798.57 1,151,118.01 1 , 8 7 3 , 8 6 1 ' . 59 651,421.05 1,478,108.76 1,597,810.21 880,662.84 8- 5-53 8- 5-53 46,533.61 do 8- 5-53 130,903.61 8- 5-53 116,041.16 8-13-53 5,842,211 .63 i+98-O do 1+98-0 do 498-P do 1+98-P do i+98-Q do i+98-R 102,690.79 11,400.20 21,194.94 1,296,258.52 10- 8-53 416,380.31 do 1-25-54 638,200.05 1+98-S do 3- 4-54 3,601,062.29 i+98-S do i+98-T do 4- 8-54 3,301,546.79 5- 6-54 Ltd. Do West D r i e f o n t e i n Date continued Western Reefs E x p l o r a t i o n Development C o . , L t d . Stilfontein U . S . Products Financed (Participating Exporters in Parentheses) Ltd. Ltd. i+98-T do i+98-U do i+98-U do 223,386.81 1,218,286.20 287,509.46 J 283,629.02 319 DEBT CEILING INCREASE AND LOANS - Continued Status of Undisbursed Balance Disbursed $ 9,289,004.01 $ Loans Repaid 2,846,032.50 $ Repayment Terms Int. Principal Installments (Semiannually - Quarterly - Monthly) 6,442,971.51 4 40 Quar. beg. 3-31-54 Outstanding % 1,011,310.56 246,119.02 765,151.54 4 36 Quar. beg. 3~31-56 6,661 ,882.39 1,429,078.14 5,232,804.25 4 40 Quar. beg. 3"31-55 1,236,798.57 177,044.69 1,059,753.88 4 36 Quar. beg. 3-31-56 11,687,767.36 2,507,209.25 9,180,558.11 4 40 Quar. beg. 3-31-56 1,151,118.01 164,779.77 986,338.24 4 36 Quar. beg. 3-31-56 11,536,976.12 1,411,411.88 10,125,564.24 4 40 Quar. beg. 9-30-56 1,285,678.30 4 36 Quar. beg. 9-30-57 1,876,034.60 4 40 Quar. beg. 3-31-55 1,285,678.30 2,388,379.41 512,344.81 1,873,861.59 268,078.63 1,605,782.96 4 36 Quar. beg. 3-31-56 4,751,372.63 809,084.77 3,942,287.86 4 40 Quar. beg. 9-30-55 651,421.05 60,329.52 591,091.53 4 36 Quar. beg. 9-30-56 5,830,688.06 735,702.22 5,094,985.84 4 40 Quar. beg. 3~31-56 1,478,108.76 69,150.73 1,408,958.03 4 36 Quar. beg. 3-31-57 5,828,568.75 735,434.83 5,093,133.92 4 40 Quar. beg. 3~31-56 1,597,810.21 74,750.75 1,523,059.46 4 36 Quar. beg. 3~31-57 880,662.84 188,915.94 691,746.90 4 40 Quar. beg. 3"3l-55 102,690.79 14,699.92 87,990.87 4 36 Quar. beg. 3-31-56 46,533.61 9,982.22 36,551.39 4 40 Quar. beg. 3-31-55 11,400.20 1,631.88 9,768.32 4 36 Quar. beg. 3~31-56 130,903.61 28,080.87 102,822.74 4 40 Quar. beg. 3-31-55 116,041.16 24,892.59 91,148.57 4 21,194.94 3,034.00 18,160.94 4 36 Quar. beg. 3~31-5,6 5,842,211.63 992,671.07 4,849,540.56 4 40 Quar. beg. 9-30-55 1,296,258.52 122,487.35 1,173,771.17 4 36 Quar. beg. 9-30-56 416,380.31 227,261.40 189,118.91 4 40 Quar. beg. 3-31-55 638,200.05 151,347.17 486,852.88 4 40 Quar. beg. 12-31-54 3,601,062.29 638,055.69 2,963,006.60 4 30 Quar. beg. 3-31-56 223,386.81 15,235.12 208,151.69 4 26 Quar. beg. 3"31~57 3.301,546.79 275,183.09 3,026,363.70 4 40 Quar. beg. 9-30-56 1,218,286.20 287,509.46 283,629.02 24,876.69 Do 1,218,286.20 4 36 Quar. beg. 9-30-57 262,632.77 4 39 Quar. beg. 9-30-56 283,629.02 4 36 Quar. beg. 9-30-57 320 DEBT CEILING INCREASE CURRENT CREDITS Credits Authorized Country and Obligor (Guarantors In Parentheses) Credit No. U. S. Products Financed (Participating Exporters in Parentheses) Date Amount Union of South Africa - continued 4,309,942.55 do 2-23-54 1,414,683.95 do 7- 5-56 167,195.90 498-X do 1-27-55 384,701.96 498-V S t i i f o n t e i n Gold Mining Co., L t d . 498-W 498-W Do Freddies Consolidated Mines, Ltd. Mining equipment, materials, and services 1- 4-54 $ Vaal Reefs Exploration and Mining Co., Ltd. 498-X do Blyvooruitzicht Gold Mining Co., L t d . 498-Y do 2- 3-55 1,409,087.93 Merriespruit (Orange Free State) Gold Mining Co., L t d . i+98-Z do 3-10-55 752,946.15 5,004,719.96 Do 32,841.95 Hartebeestfontein Gold Mining Co., L t d . 498-1-A do 9-29-55 Buffelsfontein Gold Mining Co., Ltd. 498-1-B do 10-25-56 6,549,263.46 E l e c t r i c i t y Supply Commission 530 7-10-52 19,600,000.00 Power f a c i l i t i e s f->>- production of strategic m a t e r i a l . Total 151,457,692.34 Total A f r i c a 221,471,563.66 Afghani Stan: Royal Government of Afghanistan Do 470 Construction of dam and canal 558 Helmand River Valley development 11-23-49 4-29-54 21 ,000,000.00 18.500.000.00 39,500,000.00 Total China: Yungli Chemical Indus. Ltd. (Bank of China and Republic of China) 360 Construction of chemical plant Republic of China 395 Cargo vessels 3-21-45 16,000,000.00 2-20-46 4,243.750.00 2-20-46 2,600,000.00 Generating equipment and engineering servi ces 2-20-46 8,800,000.00 398 Railway repair materials 2-20-46 16,650,000.00 399 Equipment, materials, and supplies for coal mining 3-13-^6 1 ,500,000.00 Do 396 Do 397 Do Do do 49,793,750.00 Total India: National Rayon Corporation, L t d . 713 Rayon spinning machines 7-21-55 270,000.00 Sundatta Cotton-Seed U t i l i s a t i o n , Ltd. (Eastern Bank L t d . , Bombay, India) 792-1 Solvent extraction equipment (The French Oil M i l l Machinery Co.) 3-29-57 60,000.00 Total 330,000.00 j 1 DEBT CEILING ANP LQANS ~ 321 INCREASE Continued 9 Status of Undisbursed Balance Disbursed Repayment Terms Outstanding Int. % $ r Loans Repaid 1,282,030.00 Principal Installments (Semiannually - Quarterly - Monthly) 4,309,942.55 $ 177,729.74 $ 4,132,212.81 4 40 Quar. beg. 3-31-57 1,414,683.95 178,501.39 1,236,182.56 4 40 Quar. beg. 3~3'-56 167,195.90 7,821.97 159,373.93 4 36 Quar. beg. 3-31-57 384,701.96 48,540.81 336,161.15 4 40 Quar. beg. 3~31-56 32,841.95 1,536.46 31,305.49 4 36 Quar. beg. 3-31-57 1,409,087.93 58,106.76 1,350,981.17 4 40 Quar. beg. 3-31-57 752,946.15 15,448.55 737,497.60 4 40 Quar. beg. 9~30~56 5,004,719.96 206,380.35 4,798,339.61 4 40 Quar. beg. 3-31-57 5,267,233.46 4 40 Quar. beg. 3~31-58 4 30 Sa. beg. 2-16-56 5,267,233.46 19,600,000.00 1,478,597.00 18,121,403.00 5,789,164.87 145,668,527.47 23,114,029.75 122,554,497.72 42,739,^34.05 173.933,683.68 28,896,10).07 145,037,582.61 21 ,000,000.00 2),000,000.00 3 1/2 36 Sa. beg. 10-20-58 2.400,000.00 16,100,000.00 16,100,000.00 4 1/2 2,400,000.00 37,100,000.00 37,100,000.00 1,434,254.09 1 ,029,000.00 4,243,750.00 2,340,6)0.00 405,254.09 4 Do 14 Sa. beg. 5~5~52 ($14,565,745.9) of credit canceled) 1 ,903,140.00 3 1/2 40 Sa. beg. 10-1-48 2,540,947.55 2,540,947.55 3 1/2 20 Sa. beg. 10-1-51 ($59,052.45 of c r e d i t canceled) 8,282,219.17 8,282,219.17 3 50 Sa. beg. 10-1-51 ($517,780.83 of credit canceled) 16,650,000.00 16,650,000.00 3 50 Sa. beg. 10-1-51 1 ,500,000.00 1,500,000.00 3 30 Sa. beg. 10-1-51 34,651,170.81 3,369,610.00 31,281 ,560.81 (Credit canceled) 60,000.00 60,000.00 322 DEBT CEILING INCREASE 10 CURRENT CREDITS Credits A u t h o r i z e d Country and O b l i g o r (Guarantors In Parentheses) Credit No. U . S . Products Financed (Participating Exporters In Parentheses) Date Amount Indonesia: Republic of Indonesia Republic of Indonesia - Unallotted 472 Development 4 72 -A Transportation projects Do 472-B Telecommunications Do 472-C Dredging equipment, 2- program 8-50 $ 7-27-50 development harbor construction 1,755,366.99 32,100,000.00 9-21-50 260,000.00 0-19-50 6,700,000.00 Do 472-D Railroad rehabilitation Do 472-E Aircraft and e q u i p m e n t Do 472-F Electrification Do 472-G Forest development Do 472-H Marine engines 3- Do 472-1 Cement plant 6-24-53 14,000,000.00 Do 472-J Aircraft 5-17-56 7,500,000.00 Do 472-K Telecommunications Do 472-L Diesel program program program 17,100,000.00 6,023,000.00 1-25-51 3,585,700.00 7-26-51 and e q u i p m e n t locomotive 3-50 1-30-50 1- equipment 1- equipment 6-52 978,933.01 1 ,820,000.00 1-56 1,700,000.00 1-16-56 6.477.000.00 Total 100,000,000.00 I ran: Government o f Iran - Unallotted Do 577 Economic 577-A Diesel tool s equipment, and 4-54 34,000,000.00 8-11-55 14,000,000.00 7-25-56 5,000,000.00 780,000.00 C o t t o n g i n and a c c e s s o r i e s ( N i c h o l s - M o r r i s Corp.) 8-31-56 18,000.00 884 A g r i c u l t u r a l equipment ( A l l i s - C h a l m e r s M f g . Co.) 1-29-57 180,000.00 747-2 Truck chassis (Mack T r u c k s , 5-18-56 270,000.00 21,000.00 Highway 751 Electric I b r a h i m Kermanshahchi (Bank B a z a r g h a n i , Teheran) 8I9 I r a n Techno C o r p . (Bank M e l l i ) The M i l l a r d Company, L t d . (Hossein Mirdamadi, et a l ) Diesel 1parts, 0-20-55 577-B (Bank Me M i ) Do Bongaha B a r g h development locomotives, equipment power g e n e r a t i n g equipment Inc.) Do 747-3 Diesel engines (Mack T r u c k s , I n c . ) 7-19-56 Do 747-6 T r u c k c h a s s i s and e q u i p m e n t (Mack T r u c k s , I n c . ) 4- 4-57 257,500.00 663-3 Diesel engines (Cummins D i e s e l 9-13-56 25,000.00 White C o . , Ltd. Exp. Corp.) Total 54,551,500.00 I rag: I b r a h i m J . Saad & F i I s ( E l i e I . Saad, e t a l ) Do 580-4 580-6 E a r t h moving equipment (LeTourneau-Westinghouse do 5-18-56 160,000.00 12-20-56 50,000.00 Co.) J DEBT CEILING AND LOANS ~ Continued 11 Status of Undisbursed Balance $ 323 INCREASE 1,755,366.99 $ $ 920,000.00 Loans Repayment Terms Repaid Disbursed Outstanding 3,041,904.00 260,000.00 25,368.00 234,632.00 383,000.00 6,317,000.00 610,944.00 5,706,056.00 1,741,774.18 15,358,225.82 1,485,456.00 13,872,769.82 6,023,000.00 587,592.00 3,582,000.00 348,168.00 2,187,132.44 % Principal Installments (Semiannually - Quarterly - Monthly) $ 31 ,180,000.00 3,700.00 Int. 28,138,096.00 Advances of $72 m i l l i o n are repay5,435,408.00 >3 1/2 able in 30 Sa. beg. 3-1-56 Advances in excess of $72 m i l l i o n 3,233,832.00 are repayable in 26 Sa. beg. 3-1-58 978,933.01 95,448.00 883,485.01 1 ,820,000.00 177,576.00 1,642,424.00 11 ,812,867.56 827,544.00 10,985,323.56 77,332,026.39 7,200,000.00 70,132,026.39 7,500,000.00 1,700,000.00 6,^77.000-00 22,667,973.61 To be determined 3*+, 000,000.00 900,785.11 13,099,214.89 13,099,214.89 5 14 Sa. beg. 9-1-58 4,800,000.00 200,000.00 200,000.00 5 10 Sa. beg. 6-1-59 (Credi t canceled) (Credi t canceled) 180,000.00 263,9^3.08 43,990.55 219,952.53 20,944.56 3,490.79 17,453.77 13,584,102.53 47,481.34 13,536,621.19 154,960.26 20,862.44 134,097.82 ($6,056.92 of credit canceled) ($55.44 of credit canceled) 257,500.00 i 25,000.00 40,163,285.11 50,000.00 ($5,039.74 of credit canceled) 324 DEBT CEILING INCREASE CURRENT CREDITS Credits Authorized Country and Obligor (Guarantors In Parentheses) Credit No. U . S . Products Financed (Participating Exporters in Parentheses) Dote Amount 1 rag - continued 1brahim J . Saad & Fi1s (Elle 1 . Saad, et al) Do 588-4 Earth moving equipment (Thew Shovel Co.) 5-18-56 $ 684-1 Material handling equipment (Iowa Mfg. I n t l . Sales, Inc.) 4-30-57 Total 50,000.00 230,000.00 490,000.00 1srael: State of 1srael 458-A Agricultural Do 458-B Transportation 3- 9-49 9,535,243.00 Do 458-C Housing materials 3-16-49 25,000,000.00 5,000,000.00 production 1-19-49 70,000,000.00 Do 458-D Telecommunications equipment 3-23-49 Do 458-E Port development 9- 7-49 5,464,757.00 Do 458-F Industrial development 10-26-49 20.000,000.00 Total 135,000,000.00 Japan: 569 Cotton 7-22-54 60,000,000.00 Do 712 do 7-21-55 55,600,000.00 Do 712-A do Do 815 do 8-23-56 58,300,000.00 Do 815-A do 8-23-56 1,700,000.00 3- 8-56 11,000,000.00 Bank of Japan Kansai E l e c t r i c Power Company (Japan Development Bank) Do 775 903 4,400,000.00 Turbo generating unit (Westinghouse Elec. I n t l . Co.) do Turbo generating unit (international Gen. Elec. Co.) Tokyo E l e c t r i c Power Company (Japan Development Bank) 785 Chubu E l e c t r i c Power Company (Japan Development Bank) 797 Kyushu E l e c t r i c Power Company (Japan Development Bank) 823 Turbo generating unit (Westinghouse Elec. I n t l . Co.) Japan Air Lines Company, L t d . (Japan Development Bank) 863 A i r c r a f t and spare parts (Douglas A i r c r a f t Co., Inc.) Do Mitsubishi Nippon Heavy Industries, L t d . (The Mitsubishi Bank, Ltd.) Do Total 864 663-1 663-4 do do Diesel engines (Cummins Diesel Export Corp.) do 3-21-57 4,250,000.00 4- 5-56 10,000,000.00 6-14-56 9,000,000.00 9- 6-56 8,500,000.00 11-21-56 7,700,000.00 12- 3-56 16,500,000.00 6-23-55 900,000.00 11-21-56 1,017.000.00 248,867,000.00 | DEBT CEILING ANP LOANS - Continued 13 Status of Undisbursed Balance $ 325 INCREASE 50,000.00 $ Loons Repayment Terms Repaid Disbursed $ Outstanding Int. % Principal Installments (Semiannually - Quarterly - Monthly) $ 230,000.00 330,000.00 154,960.26 20,862.44 134,097.82 70,000,000.00 11,381,239.89 58,618,760.11 9,534,698.48 1,679,086.97 7,855,611.51 25,000,000.00 3.987,699.70 21,012,300.30 1,021,201.38 3,977,542.52 5,464,757.00 861,903.10 4,602,853.90 20.000.000.00 2.962.975.59 17.037.024.41 134,998,199.38 21,894,106.63 113,104,092.75 59,900,590.35 59,900,590.35 55,495.020.61 54,182,525.33 1,312,495.28 4,382,545.96 3,596,856.99 785,688.97 1,434,672.66 56,865,327.34 41,052.82 56,824,274.52 4,293.92 1,695.706.08 1,695,706.08 8,998,740.89 1,259.11 1,259.11 J 24 Sa. beg. 3-1-54 except >3 1/2 $722,168.92 which is payable in 24 Sa. beg. 3-1-55 ($1,800.62 of c r e d i t line canceled) Repaid ($99,409.65 of c r e d i t canceled) 3 1/8 Drafts at 12 mos. ($122,433.43 of credit canceled) Do 3 3/4 Drafts at 12 mos. Do 5 34 Sa. beg. 3-15-59 ($2,000,000.00 of c r e d i t canceled) 4,250,000.00 5 1/2 34 Sa. beg. 6-1-60 8,000,000.00 5 34 Sa. beg. 3-15-59 ($2,000,000.00 of credit canceled) 8,500,000.00 5 34 Sa. beg. 3-15-59 ($500,000.00 of c r e d i t canceled) 5 34 Sa. beg. 8-1-59 8,498,767.79 1,232.21 1 ,232.21 7,700,000.00 16,500,000.00 867,171 .17 90.874.20 926.125.80 63,977,349.46 180,134,978.63 433,585.66 433,585.51 118,154,611.15 61,980,367.48 926.125.80 ($32,828.83 of c r e d i t canceled) 326 DEBT CEILING INCREASE CURRENT CREDITS Credits Authorized Country and Obligor (Guarantors In Parentheses) Credit No. U . S . Products Financed (Participating Exporters in Parentheses) Date Amount Phi 1ippines: National Power Corp. (Republic of the Philippines) 515 Development of hydroelectric power 1-31-52 $ Various Philippine lending i n s t i t u t i o n s - Unallotted 538 Machinery, equipment, materials, and services 1-13-52 China Banking Corporation 538-A 20,000,000.00 do 7- 1-54 550,000.00 500,000.00 Philippine Bank of Communications 538-B do 7- 1-5*4 Equitable Banking Corporation 538-C do 7- 1-54 500,000.00 Prudential Bank & Trust Company 538-0 do 7- 1-54 500,000.00 Rehabilitation Finance Corporation 538-E do 7- 1-54 2,000,000.00 Philippine Bank of Commerce 538-F do 11-28-54 500,000.00 Security Bank and Trust Company 538-G do 2-28-56 450,000.00 Republic of the Philippines Unallotted 777 3- 8-56 46,000,000.00 Central Bank of the Philippines 777-A do 8- 3-56 10,000,000.00 The F i r s t National City Bank of New York, Port Area Branch, Manila 777-B do 8- 9-56 500,000.00 Commercial Bank and Trust Company, Manila 777-C 10-12-56 500,000.00 Economic development Machinery, equipment, materials, and services Peoples Bank and Trust Company, Manila 777-0 10-12-56 500,000.00 Firestone Tire & Rubber Company of the Philippines 777-E Construction of t i r e and tube factory 11-21-56 2,000,000.00 Philippine Long Distance Telephone Company 777-F Equipment and materials 11-23-56 5,500,000.00 L i t t o n Spinning & Weaving M i l l s , Inc. 669 Text i l e machinery (Draper Corp.) 4-28-55 1,048,000.00 Goodrich International Rubber Company 727 Construction of t i r e and tube factory 8-18-55 do 1 .800.000.00 92,848,000.00 Total Saudi Arabia; Kingdom of Saudi Arabia Do 386 Raw materials and equipment ) - 3-46 1+82 Public works and development projects 7-20-50 25,000,000.00 15.000.000.00 40,000,000.00 Total Syria: Ayoubi & Co. 683-1 Water well d r i l l i n g rigs (Joy Manufacturing Co.) 2-10-56 105,000.00 DEBT CEILING ANP 327 INCREASE LOANS - - Continued Status of Undisbursed Balance $ Disbursed Loam Repaid _____^ Outstanding Int. % 19,998,078.37 $ 1,706,315.96 $ 335,^+67.53 214,532.47 159,890.60 340,109.40 S 18,291,762.41 4 40 Sa. beg. 7-16-55 ($1,921.63 of c r e d i t canceled) 48,000.00 166,532.47 4 20 Sa. beg. 6 mos. a f t e r date of note 40,500.00 299,609.40 4 Do 4 Do 500,000.00 200,242.07 299,757.93 5,000.00 294,757.93 2,000,000.00 500,000.00 408,639.47 41,360.53 Repayment Terms Principal Installments (Semiannually - Quarterly - Monthly) 41,360.53 4 Do 4 Do 4 Do 4 Do 46,000,000.00 1 10,000,000.00 4 1/2 10 Sa. beg. 6 mos. a f t e r date of note 500,000.00 5 Do 500,000.00 5 Do 500,000.00 5 Do 2,000,000.00 5 1/2 16 Sa. beg. 2 y r s . a f t e r date of agreement 5,500,000.00 5 1/2 12 Sa. beg. 4-15-60 383,554.16 664,445.84 1 ,800,000.00 180,000.00 69,487,793.83 23,358,284.54 2,027,690.34 21,330,594.20 10,000,000.00 9,000,000.00 1,000,000.00 3 3.630,766.40 3 1/2 22 Sa. beg. 2-15-55 ($10,232,483.60 of credit canceled) 4.767,516.40 6,513.85 1 •.1*36,750.00 657,931.99 5 Advances of $965,000.00 payable in 6 Sa. beg. 8-1-57- Advances in excess of $965,000.00 payable in 5 Sa. beg. 2-1-58 1 .620.000.00 5 1/2 16 Sa. beg. 11-15-57 14,767,516.40 10,136,750.00 4,630,766.40 102,370.62 52,500.00 49,870.62 10 Ann. beg. 12-31-48 ($15,000,000.00 of c r e d i t canceled) ($2,629.38 of c r e d i t canceled) 328 DEBT CE'JXING INCREASE CURRENT CREDIT? Credits A u t h o r i z e d Credit No. Country end O b l l o o r (Guarantors I n Parentneses) U . S . Product, Financed (Participating Exporter! I n Parentheses) Dote Amount Thai l a n d : Kingdom o f Thailand Si am Cement Company, Ltd. S . R. M o t o r s Company, Ltd. Do 8-16-51 $ 1,071,340.00 4- 7-55 1,250,000.00 D i e s e l s h o v e l s and s p a r e p a r t s ( M a r l o n Power S h o v e l C o . ) 2-10-56 82,000.00 D i e s e l t r a c t o r s and e q u i p m e n t (Massey-Harrls-Ferguson, Inc.) 2-28-57 87,500.00 504 Cargo vessels 646 Steam a n d d l e s e l g e n e r a t i n g u n i t s related services 661-1 609-4 and 2,490,840.00 Total Tti r k e y : 407-0 State seaways a n d Do 407-Q State railways Do I4O7-R State seaways a n d Do 576 G r a i n s t o r a g e and h a n d l i n g ( C o l o m b i a n S t e e l Tank C o . ) 628 Coal w a s h i n g p l a n t (McNally P i t t s b u r g Mfg. Republic of Etlbank Turkey (Republic of Turkey) harbors harbors equipment 1-26-49 431,263.64 5-25-49 3,750,000.00 5-25-49 4,250,000.00 500,000.00 4-54 4,235,000.00 3-17-55 896,182.00 11- Corp.) 14,062,445.64 Total Total General 778,038,535.64 Asia Petroleums o f Canada, Ltd. Do Total 849 Deep w e l l 873 Pump, e n g i n e s , c o n v e r t e r s , a n d e q u i p m e n t drilling rig 10-18-56 50,000.00 12-20-56 23.000.00 73,000.00 Canada Austria: 1+30-1 Creditanstalt-Bankverein (Republic of Austria) O e s t e r r e i c h i s c h e Laenderbank, A. (Republic of A u s t r i a ) G. 430-LBB Capital goods do Credi t a n s t a 1 t - B a n k v e r e i n (Republic of Austria) Do Do 647 Less: 647-A 647-B Cotton A d v a n c e s by Brueder Teich ( O e s t e r r e l c h i s c h e s C r e d i t - l n s t i t u t , A . G.) 778 Equipment 895 Less: Cotton A d v a n c e s by Creditanstalt-Bankvereln, O e s t e r r e i c h i s c h e Laenderbank, A. and C r e d i t - l n s t i t u t , A . G. G. 7-31-47 700,000.00 7-31-47 190,000.00 7-55 6,000,000.00 2,425.644.38 2,921,195.69 653,159.93 3-15-56 1 ,000,000.00 2-21-57 8,000,000.00 500.000.00 7,500,000.00 4participant f o r aluminum f o i l participants plant ] DEBT CEILING 329 INCREASE ANP LOANS - Contim-d Status of Undisbursed Balance $ Disbursed $ 1,039,830.00 $ 1,026,336.81 223,663.19 Loans Repaid 346,610.00 $ 55,000.00 Repayment Terms Outstanding Int. % FVfncfpoi installments (Semiannually - Quarterly - Monthly) 693,220.00 3 1/2 33 Sa. beg. 4-1-52 ($31,510.00 of c r e d i t canceled) 971.336.8! 5 1/2 20 Sa. beg. 7-1-57 (Credit canceled) 87,500.00 2,066,166.81 3»l t )63.19 898,232.10 500,000.00 401,610.00 1,664,556.81 Repaid 431,263.64 431,263.64 3,712,844.42 3,712,844.42 3,351,767.90 1,725,000.00 1,626,767.90 3 1/2 24 Sa. beg. 9~1~52 4 1/2 20 Sa. beg. 3-1-59 4,235,000.00 847,000.00 3,388,000.00 4 1/2 10 Sa. beg. 9-1-56 Re pa i d ($37,155.58 of c r e d i t canceled) 5 1/2 10 Sa. beg. 1 y r . from date of note 896,182.00 2,29/+,i*l1+-10 11,730,875.96 6,716,108.06 5,014,767.90 201,691,979.30 529,980,652.33 170,021,329.96 359,959,322.37 44,880.00 6,800.00 38,080.00 ($5,120.00 of credit canceled) 21.556.11 1.902.11 19.654.00 ($1,443.89 of c r e d i t canceled) 66,436.11 8,702.11 57,734.00 696,560.53 696,560.53 76,333.54 76,333.54 2,895,200.75 645,123.37 612,054.95 36,217.85 Repaid ($3,439.47 of c r e d i t canceled) Repaid ($113,666.46 of credit canceled) 2,283,145.80 608,905.52 86,890.00 913,110.00 86,890.00 7,864,888.71 500.000.00 7,364,888.71 135,111.29 135,111.29 135,111.29 135.IM.29 3 1/2 Drafts at 18 mos. ($34,031.50 of c r e d i t line canceled) Do Do 5 1/4 14 Sa. beg. 4-15~59 4 1/4 Drafts at 18 mos. 330 DEBT CEILING INCREASE CURRENT CREDITS Credits Authorized Country and Obligor (Guarantors in Parentheses) Credit No. U. S. Products Financed (Participating Exporters in Parentheses) Date Amount Austria - continued Oesterreichisch-Alplne Montangesel1schaft (CredltanstaltBankvereln and Oesterreichlsche Laenderbank, A. G.) 913 Steel m i l l equipment 4-25-57 $ 20,000,000.00 32,964,355.62 Total Belgium: Kingdom of Belgium Do 383 U. S. products (lend-lease termination) 9-11-45 55,000,000.00 384 U. S. goods and services (war reconstruction) 9-U-45 45,000,000.00 100,000,000.00 Total Denmark: Kingdom of Denmark 370 U. S. goods and services (war reconstruction) 7-13-45 20,000,000.00 Georg E. Mathiasen, Aktleselskabet 744-2 Automatic steam generators (Clayton Manufacturing Co.) 6- 5-56 3,800.00 Do 744-3 do 7-24-56 4,500.00 Do 744-4 do 9-13-56 4,300.00 Do 744-5 do 11-16-56 7,800.00 Do 744-6 do 5-10-57 6,300.00 Do 744-7 do 6-14-57 4.000.00 20,030,700.00 Total I Finland: Finnish American Trading Corp. (Bank of Finland) 421 Expansion of Industries Republic of Finland 453 Reconstruction and development projects 2-19-47 2,500,000.00 11- 3-48 100,000,000.00 102,500,000.00 Total France: Republic of France Do Societe I n d u s t r i e l l e de Mecanique et Carrosserie Automobile (SIMCA) Total 382 U. S. products (lend-lease termination) 9-11-45 550,000,000.00 404 U. S. goods and services (war reconstruction) 6-19-46 650,000,000.00 822 Less: Equipment for automobile plant Advance by participants 9- 6-56 20,000,000.00 6.000.000.00 14,000.000.00 1,214,000,000.00 | DEBT CEILING ANP LOANS - Continued Status of Undisbursed Balance $ 331 INCREASE 20,000,000.00 $ Loans Outstanding $ $ 28,277,998.71 Repayment Terms Repaid Disbursed Int. % Principal Installments (Semiannually - Quarterly - Monthly) 5 1/2 27 Sa. beg. 8-15-62 4,535,219.48 1,421,166.87 3,114,052.61 55,000,000.00 20,166,768.00 34,833,232.00 2 3/8 60 Sa. beg. 7-1-46 15,000,000.00 15,000,000.00 15.000^000.00 15,000,000.00 3,000,000.00 12,000,000.00 15.000.000.00 Repaid 10 Sa. beg. 9-3O-56 3 3 1/2 10 Sa. beg. 9~30-6l 100,000,000.00 38,166,768.00 6,666,666.67 6,666,666.67 6,666,666.66 6,666,666.67 1,333,333.39 3,717.00 3,717.00 2,470.50 61 ,833,232.00 5,333,333.28 6,666,666.66 Repaid 10 Sa. beg. 12-31-56 3 3 1/2 10 Sa. beg. 12-31-61 Repaid ($83.00 of c r e d i t canceled) ($886.50 of c r e d i t canceled) 3,613.50 1,806.75 1,806.75 4,203.00 2,101.50 2,101.50 ($97.00 of c r e d i t canceled) 7,742.25 3,871.13 3,87U2 ($57.75 of c r e d i t canceled) 3,829.50 3,829.50 4.000.00 6,470.50 20,023,105.25 8,011,496.44 12,011,608.81 2,500,000.00 1,814,000.00 686,000.00 22,403,216.01 20,000,000.00 50.000,000.00 17,603,216.01 4,800,000.00 20,000,000.00 50,000.000.00 94,903,216.01 19,417,216.01 75,486,000.00 550,000,000.00 197,270,500.00 352,729,500.00 2 3/8 60 Sa. beg. 1-1-47 650,000,000.00 142,285,000.00 507,715,000.00 3 18,269,4)0.98 5.480.823.30 12,788.587.68 1,730,589.02 519.176.70 1.211.412.32 12,788,587.68 1,201,211,412.32 21297 0—58 22 1,730,589.02 519.176.70 1.211.412.32 339,555,500.00 861,655,912.32 4 16 Sa. beg. IO-I5-5I 2 1/2 12 Sa. beg. 3-15-53 11 Sa. beg. 9-15-58 3 3 1/2 21 Sa. beg. 9-15-63 ($7,596,783.99 of credit canceled) 40 Sa. beg. 1-1-52 5 1/2 20 Sa. beg. 7-15-58 332 DEBT CEILING INCREASE CURRENT CREDITS Credits Authorized Country and Obligor (Guarantors In Parentheses) Credit No. U . S . Products Financed (Participating Exporters in Parentheses) Date [ *-" Germany: 8-55 $ 124,000.00 Hubschrauber-Vertrlebs G.m.b.H. (Commerz-Und Disconto-Bank, A. G.) 759 Helicopters and spare parts « (Bell A i r c r a f t Corp.) August Thyssen-Huette, A. G. (Kreditanstalt f u r Viederaufbau) 800 Steel m i l l equipment 6-28-56 10,000,000.00 Hanimex, Handelsgesellschaft fur Import and Export, M.B.H. 882 A g r i c u l t u r a l products 1-18-57 4,000,000.00 12T 14,124,000.00 [ Total Greece: 390 U. S. products and services 589 T e x t i l e machinery (Draper Corp. et a l ) Public Power Corporation (Bank of Greece) 796 Thermal power plant (Westlnghouse Elec. I n t l . Co.) C. Pavlou & Company (National Bank of Greece & Athens) 855 Gum naval stores plant (Applied Engineering Co.) Kingdom of Greece Piraiki-Patraiki S. A. Industrie de Coton, I - 9-46 25,000,000.00 12-16-54 625,000.00 6-14-56 7,200,000.00 11- 8-56 115,000.00 32,940,000.00 Total Iceland: County of Selforsshreppur (LandsbankI Islands) 866 Diesel tractor (American Tractor Corp.) 12- 3-56 940.00 Husavikurbaer, Husavlk (Utvegsbanki Islands) 875 Power crane and excavator (Schield Bantam Co.) r2-3l-56 1,100.00 Hafnarsjoour, Siglufjaroar (Utvegsbankt Islands) 876 Power crane (Schield Bantam Co.) 12-31-56 2,100.00 4,140.00 Total Italy: M7-D Shlpyards-Ansaido 10- 1-47 3,150,000.00 Do 417-E Sh i pya rd s-Ode ro-Te r n I - 0 r1ando 10- 1-47 800,000.00 Do 417-F Shlpyards-Cantierl 10- 1-47 2,000,000.00 Do 417-C Sh i pya rds-Nava1meccan t ca Do 1*17-H Steel m i l l s - l l v a . A l t i Fornl I s t l t u t o Mobiliare I t a l l a n o (Government of I t a l y ) Rlunltl 10- 1-47 500,000.00 10-23-47 9,000,000.00 Do 417-» Steel m l l l s - T e r n l 10-23-47 3,634,661.04 Do 417-L Steel mills-Da Inline 10-23-47 1.350,000.00 Do M7-M Steel » H l s - C o r n l g l tano 10-23-47 1,300,000.00 Do 417-N Steel mills-Lombarde Falck 10-23-47 3,000,000.00 Do M7-* Hedlum metallurgical 10-15-^7 23.39V.781.19 Industry DEBT CEILING AND LOANS - Continued Status of 1 333 INCREASE Undisbursed Balance 1$ Disbursed t 9,115,291.00 Loans Repaid 123,595.89 $ 37,079.04 $ Repayment Terms Outstanding rYincipal Installments (Semiannually - Quarterly - Monthly) $404.H of c r e d i t canceled) 5 22 Sa. beg. 1-31-60 5 1/4 Drafts at 6 and 9 mos. 4,000,000.00 13,115,291.00 % 86,516.85 884.709.00 884,709.00 Int. 1,008,304.89 37.079.04 971,225.85 4,368,993.78 7,281,656.31 2,912,662.52 2.621,393.78 1,747,600.00 7,281,656.31 2,912,662.52 624,962.88 156,240.72 468,722.16 2 1/2 20 Sa. beg. 9-30-51 20 Sa. beg. 9-30-61 3 3 1/2 10 Sa. beg. 9-30-71 ($10,436,687.39 of c r e d i t canceled) ($37.12 of c r e d i t canceled) (Credit canceled) 1 * \i5.000.00 1.15.000-00 .15,3.88,275.49 2,777,634.50 12,410,640.99 (Credit canceled) Do Do 3,107.339.45 2.362,500.00 744,839.45 3 1/2 20 Sa. beg. 3-15-50 ($42,660.55 o f c r e d i t canceled) 799,926.78 600,000.00 199,926.78 3 1/2 20 Sa. beg. 3-15-50 ($73.22 of c r e d i t canceled) 2,000,000.00' 1,500,000.00 500,000.00 3 1/2 20 Sa. beg. 3-15-50 SQO,.0u0-X)i0: 375.000.00 9., 000,000. 00 6,750,000.00 2,250,000.00 3 1/2 3,634,661 .04 2,72!9!,<&6l .04 905,4)00.00 3 1/2 Do 1,3-50vOO0vQC 1 ,«012,50fl-<00 337,500-00 3 Ml Do Do 4 25.000.00 3 V 2 Do Do 975,000.00 325,000.00 3 1/2 3,000,000.00 2,250,000.00 750,000.00 3 1/2 Oo 23.391,781.19 •17,544,4331.49 5,547,750.00 3 J/2 Do 1,300,000.00, 334 DEBT CEIILING INCREASE CURRENT CREDITS Credits A u t h o r i z e d Country and O b l i g o r (Guarantors in Parentheses) Italy - Credit No. U . S . Products Financed (Participating Exporters in Parentheses) Date Amount continued I s t l t u t o Mobiliare Itallano (Government o f I t a l y ) 417-V Small metallurgical industry 0-23-47 $ Do 417-Y Miscellaneous materials 5-49 15,919,872.70 Do 528 Less: A i r c r a f t and s p a r e p a r t s A d v a n c e s by p a r t i c i p a n t s 6-12-52 4,720,500.00 1.180.125.00 3,540,375.00 Do 662-A M a c h i n e r y and s p e c i a l e q u i pment 4-21-55 6,000,000.00 Do 662-B Italian related 5-26-55 2,555,000.00 Do 662-C M a c h i n e r y and e q u i p m e n t 6-30-55 2,000,000.00 Do 662-D 6-30-55 5,000,000.00 Do 662-E Machinery Do 662-F Machine 872 M a c h i n e t o o l and s t e e l 1nnocent i , S . p . A . Aerolinee Itallane InternazionalI ( 1 s t i t u t o Mobi1Iare I t a l i a n o ) 755 A i r c r a f t and s p a r e p a r t s (Douglas A i r c r a f t Co.) L i nee A e r e e I t a l l a n e , S . p . A . ( I s t i t u t o Mobiliare Itallano) 806 A i r c r a f t and s p a r e (Lockheed A i r c r a f t FIAT, S.p.A. ( I s t i t u t o Mobiliare 827 Less: E q u i p m e n t f o r a u t o m o b i l e and s t e e l Advance by p a r t i c i p a n t s Istituto Mobiliare Italiano Italiano) industrial services and e q u i p m e n t 584,906.33 1- manufacturing firms-machinery and do and e q u i p m e n t for chemical plant 8-11-55 1,945,000.00 5-18-56 2,500,000.00 12-18-56 1,500,000.00 11-10-55 6,355,000.00 7-12-56 6,200,000.00 9-13-56 10,000,000.00 1 .000.000.00 9.000.000.00 t o o l s and e q u i p m e n t mill equipment - parts Corp.) plant 111,226,596.26 Total Netherlands: Kingdom o f Netherlands Do 380 U. S. p r o d u c t s 381 U. S . goods and s e r v i c e s (war r e c o n s t r u c t i o n ) (lend-lease termination) 9-11-45 50,000,000.00 9-11-45 50,000,000.00 100,000,000.00 Total Norway: Kingdom o f Norway S . Hammer A / S (Den N o r s k e C r e d i t b a n k ) 369 U. S. goods and s e r v i c e s (war r e c o n s t r u c t i o n ) 81+8 T h e r m o p l a s t i c e x t r u d i n g machine (Modern P l a s t i c Mach. C o r p . ) 7-13-45 50,000,000.00 10-18-56 4,200.00 50,004,200.00 Total Poland: A c c o u n t 4140 Unconverted Dutch 141 Cotton 10-21-36 212 C o t t o n and c o p p e r 11- 166,742.52 florins N a t i o n a l Economic Bank (Republic o f Poland) 3-38 6,000,000.00 | 335 DEBT CEILING INCREASE AND LOANS — Continued 23 Status of Undisbursed Balance $ Disbursed $ 584,906.33 $ Loans Repaid 438,706.33 $ Repayment Terms Outstanding 146,200.00 Int. % Principal Installments (Semiannually - Quarterly - Monthly) 3 1/2 20 Sa. beg. 3-15-50 15,919,872.70 11,940,122.70 3,979,750.00 3 1/2 3,537,697.54 2,124,225.00 1,413,472.54 3 1/2 10 Sa. beg. 9-15-54 ($2,677.46 of c r e d i t canceled) Do 436,101.64 5,563,898.36 5,563,898.36 4 5/8 10 Sa. beg. 9-15-57 1,512,578.11 1,042,421.89 1,042,421.89 4 5/8 10 Sa. beg. 10-15~57 665,728.76 1.334,271.24 1,334,271.24 4 3/4 16 Sa. beg. 9-15-57 3,532,380.79 1,467,619.21 1,467,619.21 4 3/4 16 Sa. beg. 10-15-57 991,812.05 953.187.95 953,187.95 1,268,825.96 1,231,174.04 1,231,174.04 1,500,000.00 4 3/4 Do 4 3/4 14 Sa. beg. 9-15-59 5 1/2 16 Sa. beg. 9-15-58 6,355,000.00 6,200,000.00 8,224,494.31 822,450.00 7,402.044.31 1,775,505.69 177.550.00 1.597.955.69 29,864,471.62 81,316,713.41 1.775.505.69 177.550.00 1.597.955.69 5 1/2 10 Sa. beg. 9-15-58 50,601,746.26 30.714,967.15 50,000,000.00 18,066,049.00 31,933,951.00 2 3/8 60 Sa. beg. 1-1-47 16,666,666.67 16,666,666.67 16.666.666.66 16,666,666.67 5,000,000.05 11,666,666.62 16.666.666.66 Repaid 10 Sa. beg. 6-30-56 3 3 1/2 10 Sa. beg. 6-30-61 100,000,000.00 39.732,715.72 60,267,284.28 50,000,000.00 23.611,111.09 26,388,888.91 4,150.95 4,150.95 50,004,150.95 23,611,111.09 166,742.52 166,742.52 3,344,491.33 3.344,491.33 3 36 Sa. beg. 6-30-49 ($49.05 of c r e d i t canceled) 26,393.039.86 Repaid Repaid ($2,655,508.67 of c r e d i t canceled) 336 DEBT CEILING INCREASE CURRENT CREDITS Credits Authorized Country and Obligor (Guarantors in Parentheses) Credit No. U. S. Products Financed (Participating Exporters in Parentheses) Date Amount Poland - continued Repub 1Ic of Poland 402 Coal cars and locomotives 4-24-46 $ 40.000.000.00 46,166,742.52 Total Portugal: Transportes Aereos Portugueses, S.A.R.L. 563 A l r c r a f t and spare parts (Lockheed A i r c r a f t Corp.) 6- 3-5* 1,931,000.00 568 Thermal power unit (Westinghouse Elec. I n t l . et al) 7-15-51 1,250,000.00 705 Thermal power units ( I n t l . Gen. Elec. Co.) Advances by participants 7- 7-55 8,500,000.00 Spain: Compania E l e c t r l c a de Langreo S. A. HJdroelectrfca Espanola Less: Manufactures Hetallcas Hadrilenas S. A. (Spanish Banks) 1.469.356.25 7,030,643.75 Steel m i l l equipment (Westinghouse Elec. I n t l . et a l ) Advances by participants 10-14-51 Less: 10-11-56 574 1,200,000.00 960.000.00 240,000.00 385,000.00 Junta de Energla Nuclear 844 Atomic research reactor Cta. Espanola de Petroleos, S. A. A-4 Rotary dryer for ammonium sulphate 2-23-56 3,500.00 I n s t i t u t o Naclonal de Industrie 579-1 Steam boilers and equipment (Combustion Engineering Inc.) 9-15-551 888,000.00 Empresa Naclonal Calvo Sotelo de Combustibles Liquldos y Lubricantes 579-3 Boiler unit and equipment (Combustion Engineering Inc.) 11-17-55 582,500.00 S. A. Sanlleh! 752-1 K n l t t l n g machines (Textile Machine Works) 5-10-56 152,000.00 127,000.00 J . Rossell , S. A. 752-2 do, 5-10-56 Med las Sacma, S. A. 752-3 do 5-10-56 127,000.00 Manufacturas Antonio Gassol, S. A. 752-4 do 5-10-56 102,000.00 F. y. F. Marimon, S. A. 752-5 do 5-10-56 50,600.00 Hijo de Manuel Vallhonrat 752-6 do 5-10-56 50,600.00 Miguel G i l , S. A. 752-7 do 5-10-56 25,400.00 Miguel Bosch, S. A. 752-8 do 5-10-56 Total 25,400.00 11,039,643.75 Sweden: AB Norrkoplngs T r l c o t f a b r i k A l b . 607-1 Kni t t i n g machine (Karl Lieberknecht, Inc.) 874 Dollar requirements for materials and equipment 2-23-56 26,500.00 12-21-5* 500,000,000.00 United Kingdom: Government of the United Kingdom \ DEBT CEILING AND 337 INCREASE LOANS — Continued Status of Undisbursed Balance Loans Repaid & 40,000,000.00 $ 8.756.000.00 $ Repayment Terms Outstanding 31.244,000.00 Principal Installments (Semiannually - Quarterly - Monthly) 40 Sa. beg. 1-15-52 12,267,233.85 ($242.00 of credit 7,018,523.75 149,624.00 canceled) 7,018,523.75 90,376.00 385,000.00 Note due (Credit 63,403.50 12-21-58 canceled) ($429.00 of credit canceled) 582,500.00 (Credit canceled) Do Do Do 85,997.50 (Credit 500,000,000.00 canceled) 10 Sa. beg. 3 yrs. after dates of notes 338 DEBT CEILING INCREASE CURRENT CREDITS Credits Authorized Country and Obligor (Guarantors in Parentheses) Credit No. U . S . Products Financed (Participating Exporters in Parentheses) Date Amount Yugoslavia: Government of Yugoslavia 484 Materials and equipment 8-10-50 $ 55,000,000.00 2,391,957,878.15 Total Europe Argentina: Agenda de Transportes Moore-McCormack, S. A. (M-McC. Lines, Inc.) 408 Harbor barges 9-18-46 210,000.00 Consortium of Argentine banks 477 Refinance purchase of equipment manufactured In U. S. 5-17-50 125,000,000.00 Socledad Mlnera Argentina, S. A. (Central Bank of Argentina) 495 Equipment for production of tungsten and sulphur 4-26-51 5,000,000.00 Sociedad Mixta Siderurgia Argentina 626 Steel m i l l equipment 3-10-55 60,000,000.00 Government of Argentina - Unallotted 826 Equipment and services 9-10-56 15,000,000.00 826-A Transportation equipment 11- 5-56 85.000.000.00 Do 290,210,000.00 Total Bolivia: 315 Equipment for petroleum development Do 315 Highway construction Do 467 Do 645 Corp. Bollvlana de Fomento (Republic of Bolivia) RepublIc of Bolivia Do 3- 6-42 8,500,000.00 3- 6-42 10,320,000.00 10-28-49 18,400,000.00 Cochabamba-Santa Cruz- Montero Highway construction 3-31-55 4,700,000.00 718 Trucks (Studebaker-Packard Corp.) 7-28-55 36,000.00 732 Trucks and t r a i l e r s (Mack Trucks, Inc.) 9- 1-55 192,000.00 do 42,148,000.00 Total Brazil: Cia. Siderurgica Nacional-Banco do Brasil (Republic of Brazil) 269 Steel m i l l equipment 6-19-40 19,958,850.62 Do 269 do 6-19-40 25,041,149.38 Do 481 do 7-20-50 25,000,000.00 Do 770 do 2- 1-56 35,000,000.00 Cia. Vale do Rio Doce, S. A. (Republic of Brazi1) 358 Rai1 way equipment 1-27-45 5,000,000.00 Cia. Vale do Rio Doce, S. A. (Natl . Treasury of Brazi1) 418 Railway and mining materials and services 2-19-4- 7,500,000.00 Cia. Vale do Rio Doce, S. A. (Banco do Brasi1) 540 Diesel-electric 12-24-52 1 ,070,677.00 locomotives | DEBT CEILING ANP IQANS " Continued 27 Status of Undisbursed Balance $ Disbursed Loans Repaid Repayment Terms Outstanding Int. % $ 586,547,063.51 ' 339 INCREASE 55,000,000.00 $ 8,250,000.00 $ 46,750,000.00 1,776,628,860.40 544,834,007.28 1,231,794,853.12 204,785.20 184,306.68 20,478.52 96,469,873.13 33,764,455.62 62,705,417.51 5,000,000.00 2,500,000.00 2,500,000.00 Principal Installments (Semiannually - Quarterly - Monthly) 3 1/2 28 Sa. beg. 7-16-54 4 20 Sa. beg. 10-6-48 ($5,214.80 of c r e d i t canceled) 3 1/2 20 Sa. beg. 6-30-54 ($28,530,126.87 of c r e d i t canceled) 4 8 Sa. beg. 12-31-59 60,000,000.00 5 36 Sa. beg. 12-31-59 15,000,000.00 5 Payable 18 y r s . a f t e r date of note 85.000.000.00 5 28 Sa. beg. 4 y r s . a f t e r date of note 4 16 Sa. beg. 12-31-56 160,000,000.00 25,891.39 25,891.39 101,674,658.33 36,448,762.30 65,225,896.03 8,500,000.00 3,878,900.00 4,621,100.00 10,320,000.00 1,269,411.80 9,050,588.20 18,400,000.00 2,264,713.10 16,135,286.90 4,674,108.61 4,674,108.61 Do 4 3/4 34 Sa. beg. 6-30-58 35,194.69 17,597.35 17,597.34 ($805.31 of c r e d i t canceled) 191,574.60 68.U19.50 123,155.10 ($425.40 of c r e d i t canceled) 42,120,877.90 7,499,041.75 34,621,836.15 19,958,850.62 7,738,927.51 12,219,923.11 4 36 Sa. beg. 10-1-47 25,041,149.38 12,821,226.44 12,219,922.94 4 25,000,000.00 1,627,266.00 23,372,734.00 4 5 30 Sa. beg. 1-15-61 5,000,000.00 1,322,302.48 3,677,697.52 4 40 Sa. beg. 9-1-50 7,499,876.32 3,000,000.00 4,499,876.32 3 1/2 28 Sa. beg. 8-12-51 ($123.68 of c r e d i t canceled) 854,332.78 854,332.78 35,000,000.00 3 1/2 36 Sa. beg. 1-15~57 3 1/2 Do 36 Sa. beg. 8-1-55 Repaid ($216,344.22 of credit canceled) 340 DEBT CEILING INCREASE CURRENT CREDITS Credits Authorized Country and Obligor (Guarantors In Parentheses) Credit No. U . S . Products Financed (Participating Exporters in Parentheses) Date Amount Brazi1 - cont inued Cia. Vale do Rio Doce, S. A. (Banco Nac. do Des. Econ.) 694 Expansion of mining and shipping faci1ities Cia. Brasil de Energia E l e t r i c a ( B r a z i l i a n E l e c t r i c Power Co.) 456-A E l e c t r i c power development Cia. Energia E l e t r i c a da Bahia (B.E.P. Co.) 456-B Cia. Central B r a s i l e i r a de Forca E l e t r i c a (B.E.P. Co.) 6-16-55 $ 3,920,000.00 12-22-48 2,336,000.00 do 12-22-48 423,000.00 456-C do 12-22-48 121,839.00 Cia. Forca e Luz de Minas Gerais (B.E.P. Co.) 456-D do 12-22-48 158,149.00 Cia. Forca e Luz Nordeste do Brasil (B.E.P. Co.) 456-E do 12-22-48 147,000.00 Cia. Energia Eletrica Rio Grandense (B.E.P. Co.) 456-1 do 12-22-48 1 ,013,012.00 Cia. Paulista de Forca e Luz (B.E.P. Co.) 456-L do 12-22-48 3,179,000.00 523-A do 6- 5-52 29,663,000.00 Cia. Forca e Luz do Parana (B.E.P. Co.) 523-B do 6- 5-52 4,357,000.00 Cia. B r a s i l e i r a de Energia Eletrica (B.E.P. Co.) 523-C do 6- 5-52 3,412,000.00 Cia. Forca e Luz de Minas Gerais (B.E.P. Co.) 523-D do 6- 5-52 1 ,593,000.00 Cia. Forca e Luz de Nordeste do Brasil (B.E.P. Co.) 523-E do 6- 5-52 504,000.00 Cia. Energia Eletrica da Bahia (B.E.P. Co.) 523-F do 6- 5-52 855,000.00 Cia. Central B r a s i l e i r a de Forca E l e t r i c a (B.E.P. Co.) 523-G do 6- 5-52 756,000.00 6-22-50 8,817,600.00 6- 5-52 7,000,000.00 Do Cia. Paulista de Estradas de Ferro 479 Railway equipment do Do 524 Do 902 Diesel locomotives, and railroad equipment 3-21-57 12,800,000.00 American-Brazilian Corp., N. Y. 233 Import of tropical products 6-12-39 1,117,049.28 National Treasury of B r a z i l Central Railways of Brazil 359 E l e c t r i c a l equipment (Electrical Export Corp.) 2-12-45 4,500,000.00 Moore-McCormack (Navegacao) S. A. (M-McC. Lines, Inc.) 409 Harbor barges 9-18-46 115,000.00 Empresa I n t l . de Transportes Ltda. (Mineracao Geral. do Brasil Ltda.) 466 Ferries and converted LST vessels (Higgins, Inc.) 10-26-49 3,806,200.00 Cimento Aratu, S.A. (Cia. Nac. de Cimento Portland, S.A.) 478 Equipment for cement plant (Allis-Chalmers Mfg. Co.) 5-24-50 3,142,500.00 | DEBT CEILING AND LOANS - - Continued Status of Undisbursed Balance $ 341 INCREASE •.641,257.55 $ Disbursed 2,278,742.45 $ Repayment Terms Loans Repaid 217,777.91 $ Outstanding 2,060,964.54 559,983.82 Int. Principal Installments (Semiannually - Quarterly - Monthly) 5 18 Sa. beg. 6-15~57 % 4 1/2 20 Sa. beg. 3-l~50 ($124,464.18 of credit canceled) 2,211,535.82 1 ,651,552.00 259,416.68 259,416.68 118,754.27 86,140.18 32,614.09 4 1/2 20 Sa. beg. 3-1-50 ($3,084.73 of c r e d i t canceled) 158,149.00 111,811.35 46,337.65 4 1/2 20 Sa. beg. 3~1~50 111,712.22 103,929.00 7,783.22 386,629.26 286,586.69 100,042.57 4 1/2 20 Sa. beg. 3-1-50 ($626,382.74 of credit canceled) 3,026,523.79 2,247,553.00 778,970.79 4 1/2 20 Sa. beg. 3-1-50 ($152,476.21 of c r e d i t canceled) 1,472,000.00 28,191,000.00 704,775.00 27,486,225.00 700,000.00 3,657,000.00 91,425.00 3,565,575.00 4 1/2 Do 647,000.00 2,765,000.00 69,125.00 2,695,875.00 4 1/2 Do 413,000.00 1 ,180,000.00 29,500.00 1,150,500.00 4 1/2 Do 100,000.00 404,000.00 10,100.00 393,900.00 4 1/2 Do 336,000.00 519,000.00 12,975.00 506,025.00 4 1/2 Do 131,000.00 625,000.00 15,625.00 609,375.00 4 1/2 Do 8,657,421.20 8,657,421.20 6,999,732.60 500,792.24 Repaid ($163,583.32 of credit canceled) 4 1/2 38 Sa. beg. 6-15-58 Repaid ($160,178.80 of c r e d i t canceled) 6,498,940.36 12,800,000.00 4 1/2 16 Sa. beg. 3-1-50 ($35,287.78 of c r e d i t canceled) 4 1/2 14 Sa. beg. 6-15-57 ($267.40 of credit canceled) 5 1/2 20 Sa. beg. 3~15~59 In d e f a u l t , f u l l y reserved 1,117,049.28 989,069.09 3,798,607.14 3,798,607.14 115,000.00 108,104.87 6,895.13 3,806,200.00 3,161,712.33 644,487.67 4 1/2 17 Sa. beg. 7-25-50 3,055,843.50 2,750,259.15 305,584.35 4 1/2 10 Sa. beg. 2-15-53 ($86,656.50 of c r e d i t canceled) 127,980.19 Repaid ($701,392.86 of credit canceled) 4 20 Sa. beg. 6-25-48 342 DEBT CEILING INCREASE CURRENT CREDITS Credits Authorized Country and Obligor (Guarantors In Parentheses) Credit No. U. S. Products Financed (Participating Exporters in Parentheses) Date Amount L A T I N A M E R I C A - continued Brazi1 - cont inued Industria e Come reio de Minerios S. A. 533 Less: Production of manganese ore Credit c e r t i f i e d by D.M.P.A. Cia. Metalurgica Barbara (Banco Nac. do Desenvolvimento Econ. et al) 536 Cast i ron pi pe plant Banco Nacional do Desenvolvimento Economico - Unallotted 811 Equipment for port improvements Banco Nacional do Desenvolvimento Economico 811-A Companhia Docas de Santos (Banco Nac. do Des. Econ.) 9- 4-52 $ 71,265,567.20 16.254.935.17 55,010,632.03 10-10-52 1,860,000.00 325,000.00 7-19-56 17,786,000.00 do 4-11-57 4,875,000.00 811-B do 4-15-57 875,000.00 Administracao do Porto Rio de Janeiro (Banco Nac. do Des. Econ.) 811-C do 4-15-57 1,464,000.00 Banco Nacional do Desenvolvimento Econ. ( N a t l . Treasury of Brazil) 525 Rai1 way equipment 6- 5-52 8,600,000.00 537 Agricultural equipment 10-10-52 18,000,000.00 State of Minas Gerais (Natl . Treasury of Brazi1) 529 Agricultural equipment, materials, and services 7- 3-52 5,000,000.00 Banco do Brasi1, S. A. 541 Refinance purchase of equipment manufactured in U. S. 2-21-53 300,000,000.00 2- 9-55 75,000,000.00 9-11-45 38,000,000.00 10-30-53 3,110,000.00 8-30-56 3,950,000.00 Do Do 606 do Lloyd Brasilei ro (Banco do Brasi1) 376 Cargo steamers S. A. Empresa de Viacao Rio Grandense (Banco do Brasi1) 551 A i r c r a f t and spare parts (Lockheed A i r c r a f t Corp.) S. A. Empresa de Viacao Rio Grandense (Banco Nac. do Des. Econ.) 818 Estrada de Ferro Santos a Jundiai 560 Rai1 way equi pment (General Railway Signal Co.) 5-20-54 320,000.00 764 Less: Equipment for railroad improvement Advances by participants 1- 5-56 19,625,000.00 437.360.78 19,187,639.22 Servicos Aereos Cruzeiro do Sul L t d . (Banco do Brasi1) 561 A i r c r a f t and spare parts (General Dynamics Corp.) 5-25-54 1,945,000.00 Cia. B r a s i l e i r a de Estireno ( i n d u s t r i a Pneumaticos Firestone, S. A. et al) 544 Styrene (basis plastic materials) plant 6- 3-53 2,500,000.00 Fongra Produtos Ojjimicos, S. A. 586 Equipment and materials 11-26-54 300,000.00 Siderurgica Bel go-Mineira, S. A. 597 Steel m i l l machinery and equipment (R. W. Hebard & Associates, Inc.) 1-27-55 730,440.00 784 Wire drawing machines (R. W. Hebard & Associates, Inc.) 4- 5-56 129,000.00 615 Sintering plant (John E. Greenawalt) 2-24-55 400,000.00 Do Do Cia. B r a s i l e i r o de Usinas Metalurgicas (Hime-Comercio e I n d . , S. A.) do J DEBT CEILING ANP IPANS - Continued Status of Undisbursed Balance $ 343 INCREASE 20,250,000.00 $ 20,250,000.00 Disbursed 51,015.567.20 $ 16.254.935.17 34,760,632.03 1 ,860,000.00 321,152.68 ^__^ Loans Repayment Outstanding Int. 47,835,753.81 16.254.935.17 31.580,818.64 4 1/2 Due 12-31-65 3,179,813.39 930,000.00 138,443.38 930,000.00 182,709.30 Repaid 3.179,813.39 $ % 12 Sa. beg. 12-15~54 4 5 1/2 10 Sa. beg. 12-15-55 ($3,847.32 of c r e d i t canceled) 26 Sa. beg. 7-15-61 17,786,000.00 5 4,875,000.00 5 Do 875,000.00 5 Do 1,464,000.00 5 Do 8,598,758.53 Terms Principal Installments (Semiannually - Quarterly - Monthly) 8,598,758.53 4 14 Sa. beg. 12-15-57 ($1,241.47 of c r e d i t canceled) 433,697.88 17,566,302.12 12,860,000.00 4,706,302.12 4 7 Sa. beg. 6-8-55 266,663.81 4,733,336.19 500,000.00 4,233,336.19 4 10 Sa. beg. 3-15-57 300,000,000.00 118,664,321.83 181,335,678.17 45,000,000.00 3 1/2 81 Mos. beg. 9-30-54 45,000,000.00 4 11 Mos. beg. 5~31-6l ($30 m i l l i o n of credit canceled) 4 24 Sa. beg. 4-29-49 38,000,000.00 28,898,200.70 9,101,799.30 3,109,218.75 1,813,710.92 1,295,507.83 ($781.25 of credit canceled) 3,950,000.00 320,000.00 | 7,573,015.77 437.360.78 7,135,654.99 12,051,984.23 12,051,984.23 12,051,984.23 12,051,984.23 1,943,706.69 754,000.00 1,155.21 120,000.00 1,069,038.72 874,667.97 1,746,000.00 1,746,000.00 298,844.79 298,844.79 5 20 Sa. beg. 6-15-58 ($1,293.31 of c r e d i t canceled) 5 5/8 $1,746,000.00 payable in 18 Sa. beg. 6-1-58. $754,000.00 payable in 16 Sa. beg. 6-1-59 5 1/2 15 Sa. beg. 5"9"58 691,270.17 276,504.00 414,766.17 ($39,169.83 of c r e d i t canceled) 128,712.67 8,580.84 120,131.83 ($287.33 of c r e d i t canceled) 280,000.00 280,000.00 344 DEBT CEILING INCREASE CURRENT CREDITS Credits Authorized Country and Obligor (Guarantors in Parentheses) Credit No. U. S. Products Financed (Participating Exporters in Parentheses) Date Amount Brazl1 - continued Motor buses (Evans «• E d e l l , Inc.) 3-17-55 $ 1,222,000.00 Prefeitura Municipal do Porto Alegre (Banco do Rio Grande do Sul) 616 Alba, S. A. 769 ' 1-26-56 1,325,000.00 Cia. de Armazens Gerais do Estado de Pernambuco (Banco Nac. do Oes. Econ.) 776 Grain storage elevators (Black, Sivalls 6- Bryson, I n t e r n . Corp.) 3- 8-56 1,650,000.00 Bimetal, S. A. (Banco Sul Americano do Brazil) 781 Plant for production of automotive bearings 3-22-56 1 ,250,000.00 S. A. Industrias Votorantlm 805 T e x t i l e spinning equipment (Whitin Machine Works) 6-29-56 600,000.00 Centrais Eletrlcas de Mlnas Gerais, S. A. (Banco Nac. do Des. Econ.) 807 Construction of hydroelectric power facilities 7-13-56 11,400,000.00 ' Equipment for methanol plant Government of Brazil 810 Railroad improvements 7-19-56 100,000,000.00 Cia. Hidro-Eletrica do Sao Francisco, S. A. (Banco Nac. do Des. Econ.) 812 Expansion of power f a c i l i t i e s 7-19-56 15,000,000.00 Fabrica Naclonal de Vagoes, S. A. (Banco Nac. do Oes. Econ.) 814 Manufacture of trucks and road r o l l e r s 7-30-56 2,403,000.00 Cia. Nac. de Navegacao Costelra (United States of Brazil) 856 Reactivation of merchant vessels 1 1 - 8-56 2,750,OdO.OO Panalr do B r a s l l , S. A. (Banco da America, S. A. et al) 857 Ai reraft and spare parts (Douglas A i r c r a f t Co.) 11-15-56 6,900,000.00 Produtos Qulmicas "Elekelroz", S. A. (Banco do Brasi 1) 862 Sulphuric acid plant (Panam. Consulting Co., Inc.) 11-21-56 33,300.00 Fosforlta Olfnda, S. A. (Banco Nac. do Des. Econ.) 912 Semi-trailers (Martin Machine Company) 4-19-47 23,500.00 Cia. Urbanlzadora da Nova Capital do Brasll ( N a t l . Treas. of Brazil) 914 Equipment for construction of B r a s i l i a 4-26-57 10,000,000.00 Loide Aereo Nacional, S. A. (Banco Nac. do Des. Econ.) 921 Ai r c r a f t and spare parts (Douglas A i r c r a f t Co., Inc.) 5-31-57 3,754,000.00 922 Spare engines and parts (United A i r c r a f t Export Corp.) 5-31-57 541,000.00 Celubagaco Industrla e Comercio, S. A. (Banco Nac. do Des. Econ.) A-2 Bagasse paper pulp plant (Noble £• Wood Machine Co.) 12-23-55 540,000.00 Municipality of Porto Alegre (Banco do Rio Grande do Sul) 665-1 Truck-mounted excavator (insley Manufacturing Corp.) 7- 9-56 24,000.00 Companhia E l e t r l c a Calua (Banco B r a s l l e i r o de Descontos) 651-2 Generator sets (General Motors Corp.) 7-13-56 184,000.00 Fosforita Ollnda, S. A. (Banco Nac. do Des. Econ.) 591-1 Dump t r a i l e r s (Athey Products Corp.) 4-19-57 170,000.00 737-7 Motor graders and tractors (Caterpillar Tractor Co.) 4-19-57 220,800.00 Do Do 931,665,337.53 Total Chile: Corporacion de Fomento de la Produccion (Republic of Chile) Do 37^ Steel-mill equipment 9-11-45 48,000,000.00 411 Industrial equipment 10-16-46 6,700,000.00 | 1 DEBT CEILING AND LOANS ~ Continued Status of 1 345 INCREASE Undisbursed Balance 1$ Disbursed $ 1,221,577.43 $ Loans Repaid 143,714.96 $ Repayment Outstanding Int. % Terms Principal Installments (Semiannually - Quarterly - Monthly) ($422.57 of c r e d i t canceled) 1,077,862.47 (Credit canceled) 1,650,000.00 597,733.37 652,266.63 652,266.63 5 1/2 10 Sa. beg. 8-15-58 (Credit canceled) 8,920,921.7** 2,479,078.26 2,479,078.26 5 Repayments beg. 7-15-61 100,000,000.00 15,000,000.00 1 ,940,348. 00 462,652.00 462,652.00 5 26 Sa. beg. 8-I5-6I 5 10 Sa. beg. 10-15-58 5 1/2 2,750,000.00 1,536,934.15 24 Sa. beg. 7-15-61 8 Sa. beg. 11-30-57 5,363,065.85 5,363,065.85 (Credit canceled) 23,500.00 5 1/2 24 Sa. beg. 5-1-60 10,000,000.00 3,754,000.00 541,000.00 540,000.00 (Credit canceled) 184,000.00 170,000.00 220,800.00 259,300,666.70 638,065,085.33 221,710,641.78 416,354,443.55 48,000,000.00 11,666,491.20 36,333,508.80 6,700,000.00 5,325,000.00 1,375,000.00 4 40 Sa.. beg. 6-15-51 3 1/2 20 Sa. beg. 7-15-51 346 DEBT CEILING INCREASE CURRENT CREDITS Credits Authorized Country and Obligor (Guarantors In Parentheses) Credit No. U . S . Products Financed (Participating Exporters in Parentheses) Date | Amount L A T I N AMER IC A - continued Chile - continued 8-31-4S $ 1,200,000.00 463 Machinery and equipment for rayon plant Do 464 Refinance purchase of equipment manufactured in U. S. 10- 5-4S 25,000,000.00 Do 465 Railway and construction equipment 10-26-49 2,750,000.00 Do 485 Road building machinery, equipment, and supplies 8-17-50 1,800,000.00 10,000,000.00 Corporacion de Fomento de la Produccion (Republic of Chile) Do 502 Steel-mill equipment 8- 9-51 Do 503 Equipment for ferro-manganese plant 8- 9-51 1,150,000.00 Chi lean State Railways (Rep. of Chile) 410 RaiIway equipment 10-16-46 5,000,000.00 Cia. de Acero del Paclfico (CAP) 771 Hot s t r i p m i l l equipment 2- 2-56 3,550,000.00 Anglo-Lautaro Nitrate Corporation 808 Equipment for n i t r a t e production 7-19-56 16,000,000.00 Cia. Sal i t rera de Tarapaca y Antofagasta 809 7-19-56 11,851,000.00 Cia. de Acero del Pacifico, S. A. (CAP) (Republic of Chile) 898 Strip r o l l i n g equipment, and open hearth facilities 2-28-57 16,000,000.00 Cia. Minera Santa Barbara 619-1 Trucks and t r a i l e r s (Kenworth Motor Truck Co.) 4 - 3-56 126,000.00 do 149,127,000.00 Total Co1omb i a: 5- 1-41 11,458,40!.52 Do 296-A do 5- 1-41 8,541,598.48 Do 442-A do 5-24-50 2,500,000.00 Do 442-C Materials for reconstruction 4-13-48 5,500,000.00 Do 442-0 Railroad spare parts 2-21-51 105,000.00 Do 634 River dredge and related equipment ( E l l i c o t t Machine Corp.) 3-17-55 840,000.00 1 Republic of Colombia-Corporacion de Defense de Productos Agricolas 480 Construction for grain storage 6-29-50 2,200,000.00 Republic of Colombia-Compania Nacional de Navegacion, S. A. 486 Freight and passenger vessels 8-24-50 645,000.00 Republic of Colombia-Consejo Adm. de los Ferrocarriles Nac. de Col. 352 Railway equi pment 6-28-44 3,000,000.00 490 Diesel e l e c t r i c locomotives 1-11-51 1,503,389.00 346 A g r i c u l t u r a l development 7- i - 4 ; 14,500,000.00 Repub 1ic of Colombia Do Caja de Credito Agrario, Indus, y Minero (Republic of Colombia) 296 Highway construction DEBT CEILING AND LOANS ~ 347 INCREASE Continued 35 Status of Undisbursed Balance Disbursed $ r 1,200,000.00 $ Loans Repayment Repaid 1,200,000.00 Outstanding Int. % $ Terms Principal Installments (Semiannually - Quarterly - Monthly) Repaid 15,306,880.00 8,610,120.00 3 1/2 16 Sa. beg. 4-30-52 ($1,083,000.00 of c r e d i t canceled) 2,750,000.00 345,500.00 2,404,500.00 4 1 ,800,000.00 1,800,000.00 10,000,000.00 1,562,500.00 8,437,500.00 4 600,000.00 450,000.00 150,000.00 4 5,000,000.00 5,000,000.00 23 917,000.00 550,000.00 24 Sa. beg. 1-31-56 Repaid 32 Sa. beg. 6-15-55 6 Sa. beg. 9 - H - 5 4 Repaid 14 Sa. beg. 1-31-59 2,950,000.00 600,000.00 600,000.00 5 15,500,000.00 500,000.00 500,000.00 5 1/2 27 Sa. beg. 30 mos. a f t e r date of note 11,851,000.00 5 1/2 16,000,000.00 5 1/2 30 Sa. beg. 3~31-6l 46,851,000.00 21297 0—58 Do Repaid ($107,358.78 of credit canceled) 18,641.22 18,641.22 101,085,641.22 42,675,012.42 58,410,628.80 11,458,401.52 11,128,643.70 329,757.82 4 8,541,598.48 8,322,100.00 219,498.48 4 2,280,434.84 1,525,000.00 755,434.84 3 1/2 20 Sa. beg. 7-IO-5I ($219,565.16 of c r e d i t canceled) 5,377,454.21 4,325,000.00 l ,052,454.21 3 1/2 20 Sa. beg. 3~> 0~5l ($122,545.79 of c r e d i t canceled) 78,028.62 57,750.00 20,278.62 585,000.00 60,000.00 525,000.00 2,174,194.55 1 ,320,000.00 854,194.55 Do 3 1/2 20 Sa. beg. 4~9~52 ($26,971.38 of c r e d i t canceled) ($255,000.00 of c r e d i t canceled) 4 10 Sa. beg. 8-1-54 ($25,805.45 of c r e d i t canceled) Repai d 645,000.00 645,000.00 3,000,000.00 2,980,184.14 19,815.86 1,473,609.11 1,102,372.30 371,236.81 14,500,000.00 3,508,200.00 10,991,800.00 23 24 Sa. beg. 10-10-45 4 16 Sa. beg. 5-5-50 3 1/2 11 Sa. beg. 9-16-53 ($29,779.89 of c r e d i t canceled) 4 20 Sa. beg. 7-15-52 348 DEBT CEILEXG INCREASE CURRENT CREDITS Credits Authorized Country and Obligor (Guarantors In Parentheses) Credit No. U. S. Products Financed (Participating Exporters in Parentheses) Date Amount | 1 Colombia - continued Hotel San Diego S. A. (Banco de la Republica) 365-8 Goods and services for hotel construction 4-27-49 $ 3,057,600.00 517 Refinancing hotel obligations 3- 6-52 942,400.00 Empresa de Energia E l e c t r i c a , S. A. (Banco de la Republica) 518 Hydroelectric plant 3-27-52 2,600,000.00 Hilanderia T i t a n , Ltda. (Banco Industria Colombiano) 566 T e x t i l e equi pment (Whitin Machine Works) 7- 8-54 78,000.00 Industria Colombiana de Artefactos, S. A. (ICASA) ( J . Glottman, S. A . , J . Glottman i n d i v i d u a l l y and Banco de Bogota) 780 Production of r e f r i g e r a t i o n equipment 3-22-56 200,000.00 I Leonidas Lara e H i j o s , Ltda. 588-1 Power shovels (Thew Shovel Co.) 4- 8-55 70,800.00 Do Do 588-5 8- 9-56 65,000.00 Do 668-1 Heavy r o l l e r s and attachments (Acme 1ron Works) 8- 9-56 21,000.00 Departmento de Cundinamarca 664-2 Power shovels (Harnischfeger Corp.) 8- 4-55 180,000.00 Departmento de Cundinamarca and Departmento de Provisiones 666-2 Road r o l l e r s and accessories (The Gal ion Iron Works) 12-22-55 81,000.00 Departamento de Boyaca 649-1 Mining equipment (Goodman Manufacturing Co.) 9-22-55 33,000.00 Ingenio Central C a s t i l l a , Ltda. 579-2 Steam b o i l e r and equipment (Combustion Engineering, Inc.) 9-29-55 56,000.00 Grancolombiana de Agendas, Ltda. 666-1 Motor graders and r o l l e r s (The Gal Ion 1ron Works) 10-27-55 91,199.41 640-2 Construction equipment (Koehring Inter-American Co.) 10-27-55 60,000.00 581-2 Diesel generator and equipment (Worthington Corp.) 1-12-56 64,500.00 581-3 Diesel generator sets (Worthington Corp.) 3-29-56 232,000.00 789-1 Pumps (Jacuzzi Bros., Inc.) 6- 5-56 15,000.00 Do Cia. Colombiana de Electricidad Do E. A. Rosado & C i a . , Ltda. Do 58,640,888.41 Total Costa Rica: Republic of Costa Rica Do Lineas Aereas Costarricenses, S. A. (Republic of Costa Rica) Cia. Nacional de Fuerza y Luz, S. A. 330 Materials and services for highways 4-22-42 7,000,000.00 75^ Inter-American Highway construction 11- 3-55 9,540,000.00 584 11-26-54 900,000.00 Less: A i r c r a f t and spare parts (General Dynamics Corp.) Advances by participants 618 E l e c t r i c power equipment 3- 3-55 225.000.00 675,000.00 2,500,000.00 DEBT CEILING INCREASE AND LOANS - - Continued 37 l _ 1 349 Undisbursed Balance r Status Disbursed of Loans Repaid Repayment Int. Principal Installments (Semiannual 1/ - Quarterly - Monthly) 2,463,066.57 4 36 Sa. beg. 3~7"54 4 Outstanding $ 3,057,600.00 $ 942,400.00 675,734.00 266,666.00 [ 2,600,000.00 650,000.05 1,949,999.95 77,411.74 77,411.74 43,654.90 54,556.62 594,533.43 $ Terms % 7 Sa. beg. 6-10-55 4 1/2 28 Sa. beg. 3-11-54 Repaid ($588.26 of credit canceled) 20,000.00 136,345.10 5 1/2 10 Sa. beg. 1 y r . after date of note 40,917.48 13,639.14 ($16,243.38 of credit canceled) (Credit canceled) Do 89,877.31 ($30,204.49 of credit canceled) 67,162.50 67,162.50 ($13,837.50 of credit canceled) 32,958.96 32,958.96 ($41.04 of credit canceled) 55,526.85 55,526.85 ($473.15 of credit canceled) 40,410.13 ($39,589.87 of credit canceled) 149,795.51 51,609.54 59,918.20 11,199.41 (Credit canceled) 64,141.31 64,141.31 231,300.00 23,130.01 ($358.69 of credit canceled) 208,169.99 ($700.00 of credit canceled) (Credit canceled) 43,654.90 7,160,000.00 57,654,529.46 37,191,235.77 20,463,293.69 6,985,000.00 1,376,599.62 5,608,400.38 3 1/2 80 Quar. beg. 1—1—51 ($15,000.00 of credit canceled) 2,380,000.00 53,343.00 2.326,657.00 4 1/2 30 Sa. beg. 5-1-57 673.062.21 266,717.27 2,500,000.00 406,344.94 2,500,000.00 ($1,937-79 of credit canceled) 5 1/4 16 Sa. beg. 6-3O-58 350 DEBT CEILING INCREASE 38 CURRENT CREDITS Credits Authorized Country and Obligor (Guarantors in Parentheses) Credit No. U. S. Products Financed (Participating Exporters in Parentheses) Date | Amount L A T I N A M E R I C A - continued Costa Rica - continued I n s t i t u t o Costarricense de Electricidad (Republic of Costa Rica) 622 Diesel e l e c t r i c generating sets (Nordberg Mfg. Co.) 3- 3-55 $ Ministry of Public Works 670 Dump trucks (Mack Motor Truck Corp.) 4-28-55 243,000.00 Societa Italiana de Colonizzazione Agricola (SICA) (Government of Costa Rica) 892 A g r i c u l t u r a l development 2-14-57 161,000.00 Machinery and Tractors, Ltd. 652-2 Farm tractors and equipment (Deere 6- Company) 11-29-55 30,000.00 7**7-l Motor trucks and parts (Mack Trucks, Inc.) 5- 4-56 devolved 30,000.00 9.809.99 39,809.99 737-6 Tractors, earth moving equipment ( C a t e r p i l l a r Tractor Co.) Do Machinery and Tractors, L t d . (Alvaro and Carlos Gonzalez) 1 ,023,000.00 150,000.00 Total 21 ,361,809.99 Cuba: 24,000,000.00 4.000.000.00 20,000,000.00 Cuban E l e c t r i c Company 493 Less: E l e c t r i c a l machinery Advances by participants 3-29-51 Compania Cubana Primadera, S. A. 791 Less: Equipment for wallboard plant Advances by participants 5- 3-56 1 ,500,000.00 300.000.00 1 1,200,000.00 Compania Riera, Toro & Van Twistern, S. A. 578-4 A g r i c u l t u r a l equipment (The 01iver Corp.) 12-13-55 60,000.00 Fabrica Nacional de Implementos Agricolas, S. A. 609-3 Tractors and equipment (Massey-Harris-Ferguson, Inc.) 5- 3-56 150,000.00 Compania Riera, Toro 6- Van Twi s t e r n , S. A. 637-2 Shovels, cranes, e t c . (Baldwin-Lima-Hami 1 ton Corp.) 1-12-56 22,000.00 Powe Equipment Co., S. A. (William A. Powe) 652-5 2-24-56 160,000.00 1 Powe Machinery Co., S. A. (William A. Powe) 652-4 Tractors and a g r i c u l t u r a l (Deere & Company) 2-24-56 160,000.00 Do 737-8 Earth moving equipment and generators ( C a t e r p i l l a r Tractor Co.) 5-23-57 300,000.00 Do 737-9 do implements 6-14-57 150,000.00 Cia. Operadora Central Jaguey Grande, S. A. (Antonio Goroztiaga) 699-1 Centrifugal machinery (Hepworth Machine Co.) 10-11-56 15,000.00 Distribuidora Mack de Cuba, S. A. & Trafico y Transporte, S. A. 747-4 Heavy-duty truck tractors (Mack Trucks, Inc.) 10-11-56 108,000.00 Trafico y Transporte, S. A. (Amador Odio P.) 828-1 Semi-trailers and accessories (Brown T r a i l e r s , Inc.) 10-11-56 75,500.00 Do Total 828-2 do do 11- 8-56 24.200.00 22,424,700.00 DEBT CEILING AND LOANS ~ 351 INCREASE Continued Status of Undisbursed Balance $ Disbursed $ Loans Repaid 949,651.20 $ 284,895.36 $ 242,893.79 161,929.20 Repayment Terms Outstanding Int. % ($73,348.80 of credit canceled) 664,755.84 ($106.21 of credit canceled) 80,964.59 161,000.00 Principal Installments (Semiannually - Quarterly - Monthly) 5 1/2 8 Ann. beg. 2 y r s . a f t e r date of note 22,300.64 7,699.36 22,300.64 10,380.06 29,429.93 9,809.99 19,619.94 13,782,337.77 2,153,294.44 11,629,043.33 24,000,000.00 4,000,000.00 20,000,000.00 800,000.00 800.000.00 23,200,000.00 3.200,000.00 20,000,000.00 5 40 Sa. beg. 12-15-56 900,000.00 180,000.00 720,000.00 6 10 Sa. beg. not later than 3-21-59 150,000.00 7,489,079.42 600,000.00 120.000.00 480,000.00 900,000.00 180,000.00 720,000.00 (Credit canceled) 150,000.00 Do 160,000.00 138,953.43 21,046.57 21,046.57 300,000.00 150,000.00 15,000.00 3,750.00 11 ,250.00 Do 70,705.32 1 1,378,953.43 70,705.32 ($4,794.68 of c r e d i t canceled) ($125.40 of credit canceled) 24.074.60 3.615.55 20.459.05 20,850,826.49 7,365.55 20,843,460.94 352 DEBT CEILING INCREASE CURRENT CREDITS Creolts Authorized Country and Obligor (Guarantors In Parentheses) Credit No. U . S . Products Financed (Participating Exporters in Parentheses) Date Amount L A T I N A M E R I C A - c ontinued Dominican Republic: Atlas Commercial Co. C. por A. 666-3 Motor graders (Gallon Iron Works 6- Mfg. Co.) 7-19-56 $ 328 Water supply system 4-22-42 4,000,000.00 102,000.00 Ecuador: Municipality of Quito (Republic of Ecuador) Do Municipality of Guayaquil (Republic of Ecuador) Republic of Ecuador 328-A do 6-24-54 3,650,000.00 328 do 4-22-42 5,300,000.00 12-18-42 8,791,900.00 343 Highway construction Do 432 do Do 432-A do Do 432-B Do 471-A do Highway maintenance 10- 8-47 2,720,000.00 9-16-53 4,980,000.00 1-10-57 250,000.00 12-14-49 I ,500,000.00 12-14-49 1 ,500,000.00 Do 471 -B Railway equi pment Do 471-D Rehabilitation of water supply system 6-14-51 500,000.00 Do 471-E Ambato power f a c i l i t i e s 3-20-52 800,000.00 Do 471-F Water supply and sewer system 7-31-52 165,000.00 Do 471-G Latacunga water supply system 11- 1-56 335,000.00 Do 500 Improvement of Guayaquil and Quito ai rports 7-19-51 2,500,000.00 Do 500-A do 1-10-57 280,0"0.0C Do 741 do 9-15-55 900,000.00 2-23-56 310,000.00 10-11-56 168,000.00 5- 9-57 97,000.00 Sociedad Agricola e Industrial 773 Sugar m i l l machinery and equipment (Fulton 1ron Works Co.) Comite Ejecutivo de Vialidad de la Provincia del Guayas 845 Dredge ( E l l i c o t t Machine Corp.) Cia. Azucarera Valdez, S. A. (Rafaela Valdez, et a l ) 916 Sugar m i l l machinery and equipment (Fulton Iron Works Co.) 38*. 746,900.00 Total El Salvador: 9-19-56 5,625.00 Tire recapping plant (U. S. Rubber International) 10-25-56 19,200.00 865 Bus bodies (Blue Bi rd Body Co.) 12- 3-56 2,400.00 880 Buses (Blue Bird Body Co.) 1-1P-5; 11,400.00 Pan Lido, S. A. 831 Baking equipment (Francoeur & Co., Inc.) Samuel Quiros (Banco de Comereio de El Salvador) 851 Distribuidora de Automoviles, S. A. (Dona Secundina Poma vda. de Rossotto et al) Distribuidora de Aut omoviles, S. A. (Banco Agricola Come r c i a l de El Salvador, et al) ( DEBT CEILING AND LOANS ~ 353 INCREASE Continued Status of Undisbursed Balance Repayment Outstanding $ $ r Loans Repaid Disbursed % $ Terms Principal Installments (Semiannually - Quarterly - Monthly) (Credit canceled) 4, 000,000.00 1,649,201.00 2,350,799.00 3 1/2 60 Quar. beg. 12-15-51 3,650,000.00 449,339.00 3,200,661.00 4 1/2 60 Quar. beg. 3 mos. a f t e r date of note 5,300,000.00 2,643,700.54 2,656,299.46 3 1/2 54 Quar. beg. 6-15-51 8,771,070.10 4,021,930.23 4,749,139.87 4 80 Quar. beg. 5-1-50 ($20,829.90 of credit canceled) 2,720,000.00 336,953.44 2,383,046.56 3 1/2 Quar. 20 y r s . 4,980,000.00 463,912.82 4,516,087.18 5 5 1/4 250,000.00 Quar. 15 y r s . Do 1 ,500,000.00 319,404.71 1,180,595.29 3 1/2 80 Quar. beg. 8—1-51 1 ,500,000.00 349,152.57 1,150,847.43 3 1/2 80 Quar. beg. 2-1-51 500,000.00 96,503.01 403,496.99 3 1/2 80 Quar. beg. 5~1~52 3 1/2 Quar. 20 y r s . 800,000.00 165,000.00 12,928.40 152,071.60 2,499,995.40 83,333.18 2,416,662.22 285,673.50 30,000.00 255,673.50 3 1/2 80 Quar. beg. 8-1-55 3 1/2 Quar. 20 y r s . 335,000.00 4 3 A 60 Quar. beg. 1-1-57 ($4.60 of c r e d i t canceled) 5 1/4 60 Quar. from date of note 280,000.00 614,326.50 Int. 5 60 Quar. beg. 1-1-57 308,571.52 308,571.52 ($1,428.48 of credit canceled) 167,720.00 167,720.00 ($280.00 of c r e d i t canceled) 97,000.00 2,376,326.50 36,3^8,030.52 10,456,358.90 25,891,671.62 5,3^7.94 1,243.72 4,104.22 16,275.00 16,275.00 ($277.06 of c r e d i t canceled) ($2,925.00 of c r e d i t canceled) 2,033.12 535.00 1,498.12 ($366.88 of c r e d i t canceled) 9,916.73 1,416.67 8,500.06 ($1,483.27 of c r e d i t canceled) 354 DEBT CEILING INCREASE CURRENT CREDITS Credits Authorized Country and Obligor (Guarantors In Parentheses) Credit No. U . S . Products Financed (Participating Exporters in Parentheses) Date J Amount L A T I N A M E R I C A -continu ed El Salvador - continued Distribuidora de Automoviles, S. A. (Banco Agricola Comercial de El Salvador, et al) 881 Buses (Blue Bi rd Body Co.) 1-18-57 $ 7,750.00 2,525.00 Do 904 do 3-22-57 Do 905 do 3-22-57 7,460.00 Do 906 do 3-22-57 8,800.00 Do 915 do 5- 9-57 9,800.00 H. de Sola e Hijos 893 Soap and glycerine manufacturing equipment (The Sharpies Corp.) 2-15-57 37,500.00 Republic of El Salvador Ministry of Public Health A-5 Hospital equipment 2-28-56 98,500.00 210,960.00 Total Guatemala: Cia. Minera de Huehuetenango, S. A. (Curtis F. Corzelius) 617 Materials and equipment for lead wiring Cementos Novella, S. A. (Estuardo Novel l a , et al) 761 Fabrica de Gases I n d u s t r i a l s 3- 3-55 500,000.00 Cement plant equipment 12-22-55 1,240,000.00 81+6 Acetylene generator, compressor, e t c . (Southern Oxygen Co.) 10-12-56 Automotriz de Guatemala, Ltda. 578-1 Tractors and attachments (The Oliver Corporation) 8-11-55 60,000.00 Republic of Guatemala 633-1 Microwave system (International Gen. Elec. Co.) 7-28-55 675,000.00 Comercial MacDonald (Guatemala) S. A. 639-1 Motor trucks and equipment ( I n t ' i . Harvester Export Co.) 7- 5-56 150,000.00 Cia. Guatemalteca de Maquinaria, Ltda. 652-1 Agricultural machinery (Deere & Company) 9-22-55 ^evolved 50,000.00 7,807.48 57,807.48 737-1 Agricultural machinery ( C a t e r p i l l a r Tractor Co.) 10-27-55 tevolved 200,000.00 120.862.24 320,862.24 583-2 Asphalt mixing plant and equipment (Barber-Greene Company) II- Do Cia. Guatemalteca de Maquinaria, Ltda. (G. W. Daniels & Wi1 son Stanley) 1-56 1 ,925.00 85,100.00 3,090,694.72 Total Haiti: Societe Haitiano-Americaine de Developpement Agricole (Republic of H a i t i ) 295 Development of rubber and other tropical products 5- 1-41 5,000,000.00 Republic of Haiti 457 I r r i g a t i o n and a g r i c u l t u r a l development 12-29-48 27.000,000-00 Total 32,000,000.00 DEBT CEILING ANP IQANS " INCREASE 355 Continued 43 Status of Undisbursed Balance Disbursed Loans Repaid Repayment Terms Outstanding Int. % p $ 6,742.49 $ 1,926.42 $ Principal Installments (Semiannually - Quarterly - Monthly) 4,816.07 ($1,007.51 of credi t canceled) ($327.88 of credit canceled) 2,197.12 313.87 1 ,883.25 7,452.00 931.50 6,520.50 ($8.00 of credit canceled) 7,691.17 1 ,098.67 6,592.50 ($1,108.83 of c r e d i t canceled) 9,800.00 37,500.00 (Credit canceled) 47,300.00 57,655.57 7,465.85 50,189.72 499,943.80 187,607.07 312,336.73 1 ,238,897.60 1 ,238,897.60 1,197.59 364.80 6 3 beg. 12-1-57 ($56.20 of credit canceled) 5 1/2 10 Sa. beg. 2-1-58 ($1,102.40 of c r e d i t canceled) ($727.41 of credit canceled) 832.79 (Credit canceled) Do 57,369.05 92,630.^5 57,369.05 452.69 57,354.79 7,807.48 49,547.31 82,145.52 238,716.72 120,862.24 117,854.48 85,100.00 21,275-00 63,825.00 2,178,579.55 337,916.59 1,840,662.96 5,000,000.00 1 ,550,500.00 3,449,500.00 175,229.16 3,066,305.22 23,933,694.78 262.675.50 23,671,019.28 3,066,305.22 28,933,694.78 1,813,175.50 27,120,519.28 3 40 Quar. beg. 9-15-57 3 1/2 50 Sa. beg. 9-16-60 356 DEBT CEILING INCREASE CURRENT CREDITS Credits Authorized Country and Obligor (Guarantors In Parentheses) Credit No. U . S . Products Financed (Participating Exporters in Parentheses) Date J Amount L A T I N A M E R I C A -continued Honduras: Maqulnaria y Accesorios, S. de R. L. (Banco Nacional de Fomento) 821 Farm machinery (Allis-Chalmers Mfg. Co.) 9- 5-56 $ Maquinaria y Accesorios, S. A. (Banco Nacional de Fomento) 920 Tractors and equipment (Al1is-Chalmers Mfg. Co.) 5-23-57 5,500.00 17,000.00 Republic of Honduras 879 Construction of Inter-American Highway 1-17-57 1 ,650,000.00 Ministry of Finance 908 Crawler tractors with bulldozers (Allis-Chalmers Mfg. Co.) 4-11-57 91 ,200.00 Maquinaria y Accesorios, S. de R. L. (Commercial Bank) 640-4 Dumptors and power shovel (Koehring Inter-American Co.) 3-29-56 66,000.00 1 ,829,700.00 Total Mexico: Nacional Financiera, S. A. (United Mexican States) Do 323 Steel-mill equipmentAltos Hornos de Mexico 4-10-42 8,000,000.00 362 Railway equipmentMexican National Railways 3-21-45 19,000,000.00 Do 379 E l e c t r i c power project 3-21-45 20,000,000.00 Do 427-A Nueva Cia. Electrlca Chapala, S. A. 10- 1-47 3,500,000.00 Do 427-D Railway equipment 12- 3-47 7,000,000.00 Do 427-E Two sugar m i l l s 12- 3-45 5,000,000.00 Do 427-G Ammonium sulfate plant 2-11-48 6,000,000.00 Do 42 7-H Tampico-Ciudad Madero water works 2- 2-49 1,515,750.00 Do 427-J Rai1 way equipmentMexican National Railways 8- 3-49 12,900,000.00 Do 42 7-K Railway equipmentFerrocarril del Pacifico 8- 3-49 5,000,000.00 Do U27-L Coal mine equipment 4- 5-50 2,740,000.00 Nacional Financiera, S. A. (United Mexican States) Unallotted 487 Development of a g r i . , transp., communications, and e l e c t r i c power 8-31-50 29,700,00 0.00 Nacional Financiera, S. A. (United Mexican States) 487-A Falcon Dam and power plant 12-15-50 11,500,000.00 f+87-B Anzalduas Dam 12-15-50 1 ,000,000.00 1 ,000,000.00 12-15-50 17,500,000.00 Do Do i+87-C Yaqui Alto Canal Do 487-D Steel-mill equipmentAltos Hornos de Mexico 5-31-51 5,000,000.00 | Do 48 7-E Rehabilitation of Mexican National RaiIways 8- 2-51 51 ,000,000.00 | 5,000,000.00 Do 487-F Rehabilitation of Mexican ,Rai1 way 8- 2-51 Do l+87-G Telecommunications system 3- 6-52 1,440,000.00 Do 487-H Steel-mi 11 equipmentHojalata y Lamina 12-18-52 3,600,000.00 DEBT CEILING AND LOANS " 357 INCREASE Continued 45 Status of Undisbursed Balance $ Disbursed $ 13,641.50 $ Loans Repaid 2,409.00 $ Repayment Terms Outstanding Int. % Principal Installments (Semiannually - Quarterly - Monthly) ($3,358.50 of c r e d i t canceled) 11,232.50 5,500.00 1 ,650,000.00 91,200.00 (Credit canceled) 1,746,700.00 11,232.50 13,641.50 2,409.00 7,500,000.00 7,500,000.00 19,000,000.00 18,800,000.00 200,000.00 4 20 Sa. beg. 6-30-48 20,000,000.00 9,075,000.00 10,925,000.00 4 40 Sa. beg. 10-31-50 3,150,000.00 2,681,365.36 468,634.64 3 1/2 20 Sa. beg. 6-30-50 ($350,000.00 of c r e d i t canceled) 3 1/2 20 Sa. beg. 12-31-48 Repaid ($500,000.00 of credit canceled) 7,000,000.00 6,319,394.74 680,605.26 5,000,000.00 4,500,000.00 500,000.00 5,500,000.00 3,354,505.00 2,145,495.00 3 1/2 20 Sa. beg. 11-14-48 3 1/2 20 Sa. beg. 6-3O-5I ($500,000.00 of c r e d i t canceled) 3 1/2 20 Sa. beg. 12-31-51 1,515,750.00 909,451.68 606,298.32 12,897,342.20 8,383,272.43 4,514,069.77 3 1/2 20 Sa. beg. 6-30-51 ($2,657.80 of c r e d i t canceled) 4,900,000.00 1,715,000.00 3,185,000.00 3 1/2 20 Sa. beg. 6-30-54 ($100,000.00 of credit canceled) 2,740,000.00 523,432.81 2,216,567.19 3 1/2 24 Sa. beg. 8-15~55 (Credit canceled) 11,264,609.02 2,388,097.11 8,876,511.91 3 1/2 24 Sa. beg. 7-16-58 1,000,000.00 1,000,000.00 5 17,500,000.00 3,710,000.00 13,790,000.00 5,000,000.00 1 ,196,400.08 3,803,599.92 1,050,000.00 49,950,000.00 17,570,000.00 32,380,000.00 500,000.00 4,500,000.00 1 ,575,000.00 2,925,000.00 1,440,000.00 840,000.00 600,000.00 3,600,000.00 720,000.00 2,880,000.00 3 1/2 24 Sa. beg. 7-15-54 ($235,390.98 of credit canceled) Do 3 1/2 24 Sa. beg. 7-15~54 4 20 Sa. beg. 11-6-53 3 1/2 20 Sa. beg. 6-22-54 3 1/2 Do 3 1/2 12 Sa. beg. 1-26-54 4 1/2 20 Sa. beg. 12-31-55 358 DEBT CELLING INCREASE CURRENT CREDITS Credits A u t h o r i z e d Credit No. Country and O b l i g o r (Guarantors in Parentheses) LATIN AMERICA Mexico - Amount - conti nued A. C i a . F u n d i d o r a de F i e r r o M o n t e r r e y , S. A . y A c e r o de Do M e x i c a n G u l f S u l p h u r Co. and A z u f r e r a M e x i c a n a , S. A . Cia. Do Minera S. A. Empaques de C a r t o n T i t a n , S. A . ( V a l o r e s 1 n d u s t r i a l e s , S. A . e t Rehabilitation Rai1 ways 539 Bar and r o d c o m b i n a t i o n 801 Steel-mill 494 Sulphur S. equipment do P r o d u c t i o n o f manganese 516 Sulphur 585 Machinery, 786 M a c h i n e r y , s u p p l i e s , and e q u i p m e n t (Sandy H i l l I r o n t B r a s s Works) plant A c e r o s de C h i h u a h u a , S. A . ( C i a . F u n d i d o r a de C h i h u a h u a , S . A . e t del S. A . de T a m p i c o , S. A . Mexicana, 2-21-52 4,414,000.00 supplies, and e q u i p m e n t 11-26-54 788,000.00 4- 5-56 1 ,000,000.00 do 5-18-56 250,000.00 equipment 2-17-55 662,000.00 do 6-30-55 2,055,000.00 75,000.00 726 Rolling mill ( E . W. B l i s s 8-11-55 720,000.00 Power c o n s t r u c t i o n al) glass plant equipment Co.) program 12- 8-55 7,072,000.00 do 12- 8-55 6,781,000.00 760-C do 12- 8-55 4,931,000.00 760-D do 12- 8-55 2,354,000.00 760-E do 12- 8-55 535,000.00 760-F do 12- 8-55 1 ,360,000.00 3-29-56 1 ,820,000.00 783 Electric 788 M a c h i n e r y and e q u i p m e n t b o t t l e caps 802 Cement p l a n t e q u i p m e n t ( F . L. S m i d t h 6- C o . ) al) de Cemento ' 750,000.00 1-20-56 760-B • 1 ,027,500.00 8-23-51 Sheet Centro, Cooperativa Manufacturera P o r t l a n d , S. C. L . (Nacional F i n a n c i e r a , S See footnotes at end of tab / 12-23-55 767 Mexicana del F a b r i c a s M o n t e r r e y , S. A . ( V a l o r e s 1 n d u s t r i a l e s , S. A . e t 3,972,500.00 A. Compania E l e c t r i c a S. A . ( C e n t r o ) Electrica 26,000,000.00 it-12-51 37,100.00 760-A Cia. Industrial S. A . de C. V . 6-28-56 7-21-55 Norte, de M e r i d a , 4,500,000.00 Sheet g l a s s r e a n n e a l i n g e q u i p m e n t ( S u r f a c e Combustion Corp.) Mexicana del Compania E l e c t r i c a (Merida) 11-20-52 71^ Compania E l e c t r i c a S. A . ( N o r t e ) Compania de E l e c t r i c i d a d S. A . ( T a m p i c o ) Steel-mill 702 V i d r i o P i a n o de M e x i c o , S. A . (Fomento de I n d u s t r i a y C o m e r c i o S. et al) Nacional, concentrates 23,260,000.90 al) A. Compania E l e c t r i c a (Nacional) 0-11-56 $ mill 505 611 Compania E l e c t r i c a M e x i c a n a S u r e s t e , S. A . ( S u r e s t e ) National plant 794 S. A . H o j a l a t a y L a m i n a , S. A . ( V a l o r e s 1 n d u s t r i a l e s , S. A . e t Mexican al) Do La C o n s o l i d a d a , of V. Do Piano, 48 7-1 494 Fernandez, Pan A m e r i c a n S u l p h u r Company and A z u f r e r a P a n a m e r i c a n a , S. A . de C. Vidrio Date continued N a c i o n a l F i n a n c i e r a , S. ( U n i t e d Mexican S t a t e s ) Cia. U . S . Products Financed (Participating Exporters in Parentheses) power equipment for production of 4-26-56 100,000.00 6-28-56 75,500.00 | DEBT CEILING AND LOANS ~ Continued Status Undisbursed Balance $ 359 INCREASE 23,260,000.00 of Loans $ $ 4,500,000.00 Repayment Repaid Disbursed Outstanding $ 926,000.00 3,574,000.00 5 20 S a . b e g . 6-15-59 5 20 S a . b e g . 6-15-55 5 30 S a . b e g . 6-15~6l 5 7 Sa. b e g . 6-3O-56 1,027,500.00 6 Demand 745,000.00 83,662.84 661,337.16 5 9 Sa. b e g . 6-30-54 ($5,000.00 of c r e d i t 4,414,000.00 1,371,333.36 3,042,666.64 5 12 S a . b e g . 755,520.57 143,418.97 612,101.60 5 1,027,500.00 400,000.00 Principal Installments (Semiannually - Q u a r t e r l y - M o n t h l y ) % 3,972,500.00 26,000,000.00 3,972,500.00 Terms Int. canceled) 8-10-55 1/2 10 S a . b e g . 9 - 3 0 - 5 6 ($32,479.43 of c r e d i t canceled) 600,000.00 600,000.00 250,000.00 654,565.28 160,198.60 163,654.32 1,894,801.40 37,098.00 11,335.50 5 1/2 1,894,801.40 5 1/2 16 S a . b e g . ($2.00 of 25,762.50 72,000.00 34 S a . b e g . 5 6,781,000.00 5 Do 4,931,000.00 5 Do 2,354,000.00 5 Do 535,000.00 5 Do 1,360,000.00 5 Do 5 Do 985,833.29 834,166.71 834,166.71 (Credi t 75,500.00 credit canceled) 648,000.00 7,072,000.00 canceled) 10-15-57 75,000.00 75,000.00 720,000.00 8 Sa. b e g . 6 - 3 0 - 5 6 ($7,434.72 of c r e d i t 490,910.96 12-15-60 canceled) 360 DEBT CEILING INCREASE 48 CURRENT CREDITS Credits Authorized Country and Obligor (Guarantors In Parentheses) Credit No. U. S. Products Financed (Participating Exporters in Parentheses) Date Amount L A T I N A M E R I C A - continued Mexico - continued Cooperat i va Manufacturer de Cemento Portland, S. C. L. (Nacional Financiera, S. A.) 803 Cement plant equipment (Fuller Co.) 6-28-56 $ Tecnica I n d u s t r i a l , S. A. (Cerveceria Cuauhtemoc, S. A.) 816 B o t t l i n g machinery and equipment (Barry Wehmlller Export Sales) 8-30-56 34,125.00 Cerveceria Cuauhtemoc, S. A. 835 Brewhouse equipment (The Phaudler Co.) 9-28-56 43,200.00 Sosa Texcoco, S. A. 821+ Evaporating equipment (Whiting Corp.) 9- 6-56 17,700.00 Textiles Monterrey, S. A. 830 Textile machinery (Saco-Lowell Shops) 9-19-56 12,000.00 Malta, S. A. 834 Flour m i l l equipment (Allis-Chalmers Mfg. Co.) 9-28-56 7,200.00 Banco Nacional de Credito Agricola, S. A. 836 Tractors and a g r i c u l t u r a l machinery (Minneapolis-Moline Co.) 10- 4-56 4,800.00 Banco Nacional de Credito Agricola, S. A. (Nac. Financiera, S. A.) 838 Beef and dairy c a t t l e 10-10-56 5,000,000.00 217.500.00 ! Do 927 do 6-14-57 5,000,000.00 Do 871 Agricultural tractors (Minneapolis-Moline Co.) 12-18-56 55,000.00 Government of the State of Sonora (Nacional Financiera, S. A.) 839 Pump and diesel engine equipment (Fairbanks, Morse £• Co.) 0-11-56 30,000.00 Pavimentos, S. A. 850 Mixing machine and loader (Equipment Supply Co.) 0-19-56 6,000.00 Mil p r i n t 852 Plastic 0-26-56 2,550.00 de M e x i c o , S. A . extruder (Modern Plastic Machinery Corp.) Textiles del Norte, S. A. 853 Textile looms (Draper Corp.) 0-26-56 7,700.00 Cementos Portland Moctezuma, S. A. 858 Clinker m i l l and equipment (Kennedy-Van Saun Mfg. £. Engr.) 1-16-56 12,500.00 Pasteurizadora de los Productores de Leche, S. A. 859 Pasteurizing plant (Roberts Engineering Co.) 1-16-56 6,000.00 Abastecedora de Construcciones de Tampico Jose Mandelbaum y Cia. S. en N. C. de C. V. (Fomento de Tampico.S.A.) 861 E l e c t r i c furnace (Lectromelt Furnace Co.) 1-21-56 9,500.00 Banco Nacional de Credito Agricola S. A. (Nac. Financiera, S. A.) 878 Prefabricated buildings (Butler International Co.) 1-11-57 89,000.00 F r i g o r i f i c o s America, S. A. (Ramiro G. Uranga et a l . ) 883 Ice manufacturing plant (Roberts Engineering Co.) 1-29-57 4,350.00 Nacional Financiera, S. A. (United Mexican States) 887 Stee1—mi 11 equipmentAltos Hornos de Mexico 2- 7-57 16,000,000.00 Ingenio La Joya, S. A. (Banco de Industrial y Comercio, S.A.) 890 Steam turbines (Murray 1ron Works Co.) 2-14-57 33,400.00 Chapultepec, S. A. (Jose de J. Clark Flores) 900 Hydraulic pipe line dredge (El 1icott Machine Corp.) 3- 7-57 150,510.00 Constructora Malta, S. A (Trebol Compania Construe t o r a , S. A.) 901 3-15-57 171,800.00 do DEBT CEILING INCREASE AND LOANS ~ Continued 49 Status of Undisbursed Balance $ 361 3,412.00 $ Repaid Disbursed 214,088.00 30,467.26 Repayment Terms Loans Outstanding $ $ 3,656.08 Int. % Principal Installments (Semiannually - Quarterly - Monthly) 214,088.00 26,811.18 ($3,657.7^ of credit canceled) (Credi t canceled) 17,626.57 2,203.33 8,382.43 15,423.24 ($73.^3 of credit canceled) 8,382.43 ($3,617.57 of c r e d i t canceled) 5,595.20 1,177.92 4,417.28 ($1,604.80 of c r e d i t canceled) 3,932.63 786.53 3,146.10 ($867.37 of c r e d i t canceled) 4,843,929.39 4,843,929.39 5,000,000.00 5 5 4 Ann. beg. 12-1-57 ($156,070.61 of credit canceled) 4 Ann. beg. 11-1-58 (Credit canceled) Do 5,304.60 1,515.60 2,501.55 3,789.00 ($695.40 of c r e d i t canceled) 2,501.55 ($48.45 of c r e d i t canceled) ($20.00 of c r e d i t canceled) 7,680.00 3,840.00 3,840.00 6,000.00 1,333.32 4,666.68 12,500.00 9,500.00 88,680.00 88,680.00 ($320.00 of credit canceled) 4,298.52 4,298.52 ($51.48 of c r e d i t canceled) 5 1/2 30 Sa. beg. 1-15-60 16,000,000.00 (Credit canceled) 150,510.00 171,720.00 12,542.50 137,967.50 171,720.00 ($80.00 of credit canceled) 362 DEBT CEILING INCREASE CURRENT CREDITS Credits A u t h o r i z e d Credit No. Country and O b l i g o r (Guarantors in Parentheses) LATIN Mexico - AMERICA J Amount - cor t i n u e d C i a . P a p e l e r a M a l d o n a d o , S. (Jorge Maldonado, et a l ) Bosques de C h i h u a h u a , Montes y V a l d e s , V. A. S. de R. L. S. A . Servicio Agricola, Motor coaches (The F l x i b l e C o . ) 923 Equipment f o r paper m i l l (The Sandy H i l l I r o n t B r a s s Swivel 640-1 C o n s t r u c t i o n equipment (Koehring Inter-American 599-1 S. 636-1 clam c a r r y S. A. Equipos A g r i c o l a s , Abastecedores A. A. de M a q u i n a r i a , S. A. P r e m e z c l a d o s de M i x c o a c , Concretos A i t a C. V. Resistencia, S. A . S.A. de Do lift 6- 2-28-56 Co.) 6-27-55 Revolvec 75,000.00 1 15.246.00 90,246.00 9 - 1-55 Re v o l vec 10,000.00 4.638.68 14,638.68 ditchers, 750-2 Transcrete truck mixers ( C o n s t r u c t i o n Machinery Co.) &* 5-56 45,500.00 2-28-57 48,000.00 11-17-55 135,000.00 12-22-55 22,700.00 do D i e s e l and gas e n g i n e s (Cummins E n g i n e C o . , I n c . ) 737-3 T r a c t o r s , equipment, (Caterpillar Tractor M a q u i n a r i a General (Kemper M a r l e y ) Pacifico, del M a q u i n a r i a D i e s e l , S. ( J u s t o A. O d r i o z o l a ) S. Occidente, A. A. S. A. 12,580.00 44,500.00 663-2 Pozos y E q u i p o s d e l 10-28-55 3-55 Power s h o v e l s and e a r t h m o v i n g (Thew Shovel C o . ) A. 90,000.00 23.760.74 11 3 , 7 6 0 . 7 4 1- 588-3 S. 10- 6-55 Revo)ved Truck-mounted concrete mixers ( C o n s t r u c t i o n Machinery Co.) Hydraulic (El 1 i c o t t Equipos, 2,700.00 750-1 610-1 S. A . 9-27-56 Concrete mixers ( B l a w - K n o x Company) Warehouse t r u c k s and e q u i p m e n t (The Y a l e & Towne M f g . C o . ) Compania C o n s t r u c t o r a , 10,000.00 2,499.74 12,499.74 631-1 machinery 711-1 A. 1-12-56 Revolved A g r i c u l t u r a l and i n d u s t r i a l ( J . 1 . Case Co.) E x c a v a t o r s and r e l a t e d ( B u c y r u s - E r i e Co.) S. 7,000.00 10,000.00 7.609.05 17,609.05 667-1 687-1 Cuauhtemoc, 7-20-56 9-22-55 Revolved A g r i c u l t u r a l s p r a y e r s and e q u i p m e n t (Food Mach. & C h e m i c a l C o r p . ) Equipos Mecanicos, Cerveceria 2,700.00 7*48-1 750-3 A. etc. do C o n c r e t o s A l t a R e s i s t e n c i a S. A . de C. V. (Banco d e l P a i s , S. A . de C. V . ) S. 620,000.00 loader do Land l e v e l e r s , g r a d e r s , (Eversman M f g . C o . ) 7-57 157,000.00 Works) A g r i c u l t u r a l equipment (New H o l l a n d M a c h i n e C o . ) 636-2 S. 4-11-57 $ A-6 599-2 M. B y e r l y , Concretos 909 S. A . Do Equipos A g r i c o l a s , Trebol Date continued Omnibus de M e x i c o , S. A . de C. (Banco N a c i o n a l de Fomento C o o p e r a t i v e , S. A . de C. V . ) L. U . S . Products Financed (Participating Exporters in Parentheses) 737-4 equipment pipe l i n e dredges Machine C o r p . ) do 5-56 75,000.00 1-27-56 75,000.00 2-28-56 Revolved 90,000.00 12,083.78 102,083.78 1- equipment and g e n e r a t o r s Co.) 9-56 275,000.00 5-18-56 Revolved 200,000.00 10,502.67 210,502.67 3- DEBT CEILING AND 363 INCREASE LOANS — Continued Status of Undisbursed Balance $ $ 156,775.50 Repayment Loans Repaid Disbursed Outstanding $ $ 156,775.50 Int. % Terms Principal Installments (Semiannually - Quarterly - Monthly) ($224.50 of c r e d i t canceled) 620,000.00 (Credit canceled) 65.564.25 24,681.75 15,246.00 9,435.75 9,277.35 4,638.68 4,638.67 ($5,361.33 of credit canceled) 6,382.80 ($617.20 of c r e d i t canceled) 6,382.80 5,699.25 11 ,909.80 7,609.05 4,300.75 2,500.80 9,998.94 2,499.74 7,499.20 2,025.00 675.00 1 ,350.00 66,001.74 23,760.74 42,241.00 12,230.40 5,940.48 6,289.92 ($349.60 of c r e d i t canceled) 44,460.00 14,820.00 29,640.00 ($40.00 of credit canceled) 45,240.00 7,540.00 37,700.00 ($260.00 of credit canceled) 47,871.00 ($129.00 of c r e d i t canceled) 47,759.00 47,871.00 ($675.00 of c r e d i t canceled) (Credit canceled) 22,643.25 22,643.25 74,860.50 74,860.50 12,083.78 ($56.75 of c r e d i t canceled) Repaid ($139.50 of credit canceled) 75,000.00 62,556.28 39,527.50 258,899.87 16,100.13 36,332.74 174,169.93 21297 0—58 24 27,443.72 16,100.13 10,502.67 163,667.26 364 DEBT CEILING INCREASE CURRENT CREDITS Credits A u t h o r i z e d Credit No. Country and O b l i g o r (Guarantors i n Parentheses) LATIN AMERICA Mexico - U . S. Products Financed (Participating Exporters in Parentheses) Date Amount - continued continued M a q u i n a r i a D i e s e l , S. (Justo A. Odriozola) Casa W i e s l e y , S. A. A. S. C. de E j i d a t a r r o s y O b r e r o s I n g e n i o E m i l i a n o Zapata del F a i r b a n k s , Morse de M e x i c o , S. A. I n d u s t r i a l A v i c o l a " S a n t a Rosa" S. ( J o s e N. T o l e d o C o n t r e r a s ) Minneapolis de T o r r e o n , A g r o m e c a n i c a , S. ( A l f r e d B. H o l t ) S. A. A. A. Productora Ferretera Mexicana, ( S o c i e d a d M e x i c a n a de C r e d i t o I n d u s t r i a l , S. A . ) S. A. Banco N a c i o n a l de C r e d i t o E j i d a l , S. de C. V . ( M a c . F i n a n c i e r a , S . A . ) A. 636-3 Land l e v e l e r s , g r a d e r s , (Eversman M f g . Co.) 637-^+ Power s h o v e l s , c r a n e s , (Baldwin-Lima-Hamilton 723-1 Cane s h r e d d e r , e t c . (Gruendler Crusher & P u l v e r i z e r 10-11-56 $ devolved etc. draglines Corp.) 24,000.00 10.486.65 34,486.65 5-17-56 120,000.00 6-14-56 32,000.00 150,000.00 Co.) 578-5 A g r i c u l t u r a l and a l l i e d e q u i p m e n t (The O l i v e r C o r p o r a t i o n ) 8-16-56 730-1 I n c u b a t o r c o m b i n a t i o n and (Buckeye I n c u b a t o r Co.) 8- 587-<+ 9-56 6,200.00 Agricultural implements ( M i n n e a p o l i s - M o l i n e Co.) 9-27-56 75,000.00 737-5 T r a c t o r s , e a r t h moving equipment ( C a t e r p i l l a r T r a c t o r Co.) 2- 7-57 150,000.00 660-1 P o l i s h i n g m a c h i n e and s u r f a c e g r i n d e r ( S a b i n S t . Germain t A s s o c i a t e s , I n c . ) 2- 8-57 16,400.00 854-1 Cotton g i n equipment (The M u r r a y C o . o f T e x a s , 5-17-57 232,000.00 parts Inc.) Total 341,750,292.31 Nicaragua: Empresa de Luz y F u e r z a E l e t r i c a (Republic of Nicaragua) S. A. 436 Diesel power generator 5-24-51 600,000.00 Republic of Nicaragua &70 Construction of T2-12-56 2,000,000.00 Kinistry Finance 9W Motor g r a d e r s and T r a x c a v a t o r s ( C a t e r p i l l a r T r a c t o r Co.) 5-16-57 38,200.00 578-3 T r a c t o r s and a t t a c h m e n t s (The 0 1 I v e r C o r p . ) 9-29-55 300,000.00 747-5 Trucks (Mack T r u c k s , 12-31-56 336,000.00 of Banco N a c i o n a l R e p u b l i c s de de Nicaragua Nicaragua Inter-American Highway 1nc.) 3,274,200.00 Total Panama: Republic of Panama Do Heurtematte & Arias, S. A. 501 Financing unfunded o b l i g a t i o n s of 924 Construction of Highway 609-2 T r a c t o r s and e q u i p m e n t (Massey-Harris-Ferguson, Inter-American hotel 7-26-51 1 ,500,000.00 6-14-57 12,850,000.00 4-26-56 30,000.00 Inc.) 14,380,000.00 Total Paraguay: Republic of Paraguay Do 337 Highway 570 Asuncion water construction supply system 5-18-42 3,000,000.00 9- 7,000,000.00 2-51 | DEBT CEILING AND 365 INCREASE LOANS — Continued 53 Status of Undisbursed Balance $ r 10,491.99 Loans $ 23,994.66 Repayment Terms Repaid Disbursed Outstanding Int. % rYincipal installments (Semiannually - Quarterly - Monthly) $ JO,486.65 13,508.01 120,000.00 30,567.89 6,180.00 ($1,432.11 of c r e d i t canceled) 30.567.89 1,030.00 ($20.00 of c r e d i t canceled) 5,150.00 55,269.05 19.710.95 19,710.95 55.216.82 94,783.18 94,783.18 16,351.56 16,351.56 ($48.44 of c r e d i t canceled) (Credit canceled) 100,305,253.94 209,204,313.16 94,773,716.02 114,430,597.14 600,000.00 300,000.00 300,000.00 4 10 Ann. beg. 5-21-53 5 1/4 30 Sa. beg. 8-1-59 2^100,000.00 38,200.00 225,709.32 74,290 .-68 43,878.60 30,412.08 (Credit canceled) 2,263,909.32 674,290.68 343,878.60 330,412.08 1,500,000.00 638,305.82 861.69*.18 4 120 Mos. beg. 10-10-52 5 1/4 60 Guar. beg. 7-31-62 12,850,000.00 30,000.00 12,880,000.00 1,500,000.00 •6 38,3^>5.82 3,000,000.00 2,878,629.01 4,137,596.96 2j862.403.04 861,694.18 121,370.99 4 20 Sa. beg. 6-6-49 2,862,403.04 5 40 Sa. beg. 6-15-59 366 DEBT CEILING INCREASE CURRENT CREDITS Credits Authorized Country and Obligor (Guarantors in Parentheses) Credit No. U . S . Products Financed (Participating Exporters in Parentheses) Date Amount L A T I N A M E R I C A - continued Paraguay - continued Republic of Paraguay 691 Reconstruction of a i r p o r t 6- 9-55 $ 800,000.00 10,800,000.00 Total Peru: Corp. Peruana del Santa (Republ\c of Peru) 368 E l e c t r i c a l equipment (Westinghouse Elec. I n t l . Co.) 6-12-45 450,000.00 Cerro de Pasco Corp. 483 Zinc refinery and power equipment 8- 3-50 14,000,000.00 6,800,000.00 Southern Peru Copper Corporation 547 Copper mining and r e f i n i n g equipment (Toquepala) 11- 4-54 100,094,777.39 Marcona Mining Company 548 Iron ore mining equipment 7-15-53 2,500,000.00 Banco Central de Reserva del Peru (Republic of Peru) 627 Hospital equipment (American Hospital Supply Corp.) 3-11-55 1,330,000.00 Carrocerias Metalicas, S. A. 774 Bus body parts 2-28-56 32,000.00 The Peruvian Corporation Ltd. 798 Diesel e l e c t r i c locomotives 6-21-56 1,550,000.00 Rayon Peruana, S. A. (Banco Comercial del Peru) 804 F e r t i l i z e r producing machinery (Panamerican Consulting Co.) 6-28-56 66,000.00 867 Sulphuric acid plant (Panamerican Consulting Co.) 12- 3-56 19,000.00 Servicio del Agua Potable de Lima 817 Water meters (Rockwell Manufacturing Co.) 8-30-56 141,200.00 Cia. Industrial F i l o t e x , S. A. (Banco Continental, Lima) 820 Yarn dyeing machinery (Gaston County Dyeing Mach. Co.) 8-31-56 4,600.00 ' A. y F. Wiese, S. A. 825 Asphalt plant and equipment (Barber-Greene Americas, Inc.) 9- 6-56 3,120.00' Universal T e x t i 1 , S. A. 833 Text i l e machinery (Saco-Lowell Shops) 9-27-56 11 ,000.00 Sociedad Quimico Industrial Lima, Ltd'a. 837 Oxygen producing machinery (Ai r Products, Inc.) 10- 4-56 7,800 00 33,200.00 Do Consorcio de Equipos de Construccion, S. A. (Banco Gibson, S. A.) 860 Concrete batching plant (Heltzel Steel Form & Iron Co.) 11-16-56 Empresa Inca, S. A. (Banco 1nternacional del Peru) 868 Bus chassis with diesel engines (Whi te Motor Co.) 12- 3-56 16,500.00 869 Bus bodies (Superior Coach Corp.) 12- 3-56 7,500.00 A. y F. Wiese, S. A . , Lima, Peru (Banco Wiese, Ltdo) 877 Asphalt plant (Barber-Greene Americas, Inc.) 1-11-55 17,000.00 Manufacture de Metales y Aluminio "Record", S.A., Fabrica de Aluminio y Metales, S.A. (Frederico G. Moll) 889 Aluminum extrusion equipment (Lombard Corp.) 2- 8-57 91 ,000.00. Nicolini Hermanos, S. A. (Peruvian Banks) 891 Wheat 2-14-57 2,250,000.00 Enrique Ferreyros y Cia. S. A. (Carlos Ferreyros) 894 Low bed machinery t r a i l e r s (Martin Machine Co.) 2-19-55 6,000.00 Do 367 DEBT CEILING INCREASE ANP IQANS ~ Continued 55 Status of Undisbursed Balance $. 121 .964.24 $ 4,259,561.20 678,035.76 Loans Repayment Terms Outstanding Repaid Disbursed $ $ 6,540,438.80 2,878,629.01 444,158.84 444,158.84 678,035.76 Int. % Principal Installments (Semiannually - Quarterly - Monthly) 4 5/8 10 Sa. beg. 11-15-56 3,661,809.79 Repaid ($5,841.16 of c r e d i t canceled) 4,300,000.00 14,000,000.00 2,500,000.00 14,000,000.00 2,500,000.00 4 1/2 20 Sa. beg. 1-15-58 4 1/2 20 Sa. beg. 7-15-60 82,000,000.00 18,094,777.39 18,094,777.39 5 1/8 30 Sa. beg. 8-15-61 81,200.00 1,000,000.00 1,000,000.00 1,248,800.00 436,800.00 31,971.42 7,992.86 812,000.00 23,978.56 1 ,550,000.00 1 ,550,000.00 65,250.00 Repaid ($1,500,000.00 of credit canceled) 10,875.00 18,386.93 ($28.58 of c r e d i t canceled) 5 1/4 20 Sa. beg. 10-1-58 54,375.00 ($750.00 of credit canceled) 18,386.93 ($613.07 of c r e d i t canceled) (Credit canceled) 3,052.80 1 ,526.40 1,526.40 2,155.44 1,539.60 615.84 ($1,547.20 of c r e d i t canceled) ($964.56 of c r e d i t canceled) (Credi t canceled) Do 33,133.20 33,133.20 ($66.80 of c r e d i t canceled) 16,500.00 7,500.00 (Credit canceled) 91,000.00 2,250,000.00 6,000.00 5 1/4 Drafts at 12 mos. 368 DEBT CEILING INCREASE CURRENT CREDITS Credits Authorized Country and Obligor (Guarantors in Parentheses) • Credit No. U. S. Products Financed {Participating Exporters in Parentheses) Date Amount Peru - continued $ Fabritex Peruana, S. A. (Financiera Peruana, S. A.) 899 Textile looms (Crompton & Knowles Corp.) 3- 1-57 Sociedad Agricola "Pucala" Ltda., S. A. (Stockholders or Comm. Bank) 907 Machinery and equipment for sugar m i l l (The Squier Corp.) 3-28-57 731,000.00 Cia. Naclonal de Cerveza 910 Bottle-washing machinery (Barry-Wehmi1ler Export Sales Co.) 4-18-57 30,000.00 9H B o t t l e - f i l l i n g machinery (Crown Cork 6- Seal Co., Inc.) 4-18-57 7,500.00 Juan Magot, S. A. 587-1 Agricultural machinery (Minneapolis-Moline Co.) 4- 5-55 99,062.52 Comerciai Industrial Peruana, S. A. (Banco Continental) 580-5 Tournapul1s (LeTourneau-Westinghouse Co.) 6-28-56 16,000.00 Sociedad Agricola/'Pucala" L t d a . , S. A. 581-1 Power plant equipment (The Worthington Corp.) 9-29-55 225,000.00 Consorcio de Equipos de Construccion, S. A. (Banco Gibson, S. A.) 581-4 Concrete mixers on trucks (Worthington Corp.) 10- 4-56 51,700.00 581-5 Truck mixers (Worthington Corp.) 3-15-57 53,300.00 Corporacion Peruana del Santa 664-1 Clam shell excavator (Harnischfeger Corp.) 7-14-55 24,000.00 Compania Peruana de Cemento Portland 664-3 Power shovel (Harnischfeger Corp.) 11-17-55 63,000.00 Supermarkets, S. A. 711-2 Warehouse truck (The Yale & Towne Mfg. Co.) 6- 6-57 3,900.00 Enrique Ferreyros 6- C i a . , S. A. (Carlos Ferreyros) 737-2 Tractors and generators ( C a t e r p i l l a r Tractor Co.) 3- 8-56 devolved 500,000.00 76.072.66 576,072.66 La Comerciai Importadora, S. A. (Banco Union, Lima, Peru) 747-7 Fire engines and pumps (Mack Trucks, Inc.) 6-27-57 73,400.00 Gross Equipment S. A. 748-2 Agricultural and industrial equipment (Food Machinery and Chemical Corp.) 1-11-57 30,000.00 A. y F. Wlese, S. A. (Banco Wiese, Ltdo.) 709-1 Fire f i g h t i n g equipment (Ward La France I n t l . Inc.) 3- 1-57 24,300.00 Do Do Total 11,280.00 131,450,212.57 Uruguay: Republic of Uruguay 4-22-42 2,667,000.00 4-22-42 9,333,000.00 Highway construction equipment 2- 2-43 20,000,000.00 492-A E l e c t r i c locomotives and spare parts (International Gen. Elec. Co.) 3- 8-51 2,538,100.00 492-B E l e c t r i c locomotives and spare parts (American Locomotive Company) 3- 8-51 321,440.00 557 Steel-mill equipment 2-25-5' 2,475,000.00 331 Do 331 Do 3^5 Do Do Cia. Siderurgica del Uruguay, S. A. Hydroelectric development do DEBT CEILING AND LOANS - 369 INCREASE Continued Status of Undisbursed Balance Loans Repaid Repayment Terms Outstanding Principal Installments (Semiannually - Quarterly - Monthly) 11,280.00 731,000.00 30,000.00 7,500.00 37,198.80 61,863.72 29,062.52 32,801.20 15,441 .09 3,860.34 11,580.75 ($558.91 of credit canceled) 224,580.00 28,072.50 196,507.50 ($420.00 of credit canceled) 51 ,660.00 6,457.50 45,202.50 ($40.00 of credit canceled) 53,280.00 ($20.00 of credit canceled) 11 ,638.50 ($723.00 of credit canceled) 53,280.00 23,277.00 11 ,638.50 (Credit canceled) 181,806.41 73,400.00 30,000.00 24,300.00 2,058,056.72 (,882,585.21 2,667,000.00 400,050.00 2,266,950.00 9,333,000.00 4,799,100.00 4,533,900.00 2,295,000.00 2,032,200.00 262,800.00 2,284,290.00 2,284,290.00 321,440.00 321,440.00 30 Sa. beg. 6-15-51 25 Sa. beg. 5-15-47 ($17,705,000.00 of credit canceled) Repaid ($253,810.00 of credit canceled) Repaid (Credit canceled) 370 DEBT CEILING INCREASE CURRENT CREDITS Credits Authorized Country and Obligor (Guarantors in Parentheses) Credit No. U . S . Products Financed (Participating Exporters in Parentheses) Date Amount L A T I N . A M E R I C A - continued. Jruquay - continued Administracion Nacional de Puertos 623-2 Self-propelled cranes (Schield Bantam Co.) 10-28-55 $ Horacio Torrendell, S. A. 587-3 Tractors and power units (Minneapolis-Moline Co.) 11-10-55 88,000.00 110,000.00 37,532,540.00 Total Venezuela: Hotel Tamanaco, C. A. (Banco Obrero) 365-A Goods and services for hotel construction 4- 2-48 2,337,697.00 C. A. la Electricidad de Caracas (Corp. Venezolana de Fomento) 451 Diesel e l e c t r i c generator units 9- 8-48 1 ,950,000.00 469 E l e c t r i c a l equipment (international Gen. Elec. Co., Inc.) 11-23-49 5,158,000.00 740 Quarico River Dam construction (S. J. Groves & Sons Co. et al) 9-15-55 4,125,000.00 Do Republic of Venezuela, Ministry of Publ1c Works Republic of Venezuela 799 Dredging project 6-25-56 3,500,000.00 Cia. Anonima Venezolana de Ceramica 832 Wall t i l e k i l n 9-19-56 28,000.00 Lorenzo B u s t i l l o s M. & Cia. Sues. C. A. 840 1ndustrial t r a i l e r s (Trailmobile, 1nc.) 10-11-56 6,450.00 Do 841 A i r compressors, d r i l l s , and a i r tools (ingersol1-Rand Co.) 10-11-56 6,250.00 Do 842 Wood and metal working machinery (John D. Williams Export Corp.) 10-11-56 3,450.00 Do 843 Generators and welding equipment (Hobart Brothers) 10-11-56 6,100.00 Lorenzo B u s t i l l o s M. & Cia. Sues. C. A. (Lorenzo Busti1los M. et al) 919 1ndustrial t r a i l e r s (Trailmobile, 1nc.) 5-17-57 11 ,100.00 "Simar" Sociedades Industriales M a r c o t u l l i , C. A. (Banco Nac. de Descuento) 847 Asphalt batching plant (Standard Steel Corp.) 10-18-56 11 ,500.00 S. A. Eugene Capucio y Cia. 896 Heavy construction and earth moving equip- 2-28-57 ment (LeTourneau-Westinghouse Co.) devolved 20,000.00 4.541.41 24,541.41 897 Mining equipment (Pioneer Engineering Works, Inc.) 2-28-57 11,500.00 Aerovias Venezolanas, S. A. (AVENSA) (H. L. Boulton & Co., S. A.) 918 A i r c r a f t and spare parts ( F a i r c h i l d Engine and Airplane Corp.) 5-16-57 1 ,200,000.00 Sanchez & Cia., S. A. 925 Crushing equipment and asphalt plants (Baldwin-Lima-Hamilton Corp.) 6-14-57 37,500.00 C. A. Venezolana de Pulpa y Papel (Banco Union, et al) 926 Construction of paper m i l l 6-14-57 3,500,000.00 Corporacion Venezolana del Motor, S. A. A-8 Heavy duty trucks 2-28-56 12,000.00 Oficina Tecnica Stubbins, C. A. 583-1 Materials-handling equipment and ditchers (Barber-Greene Co.) 2-16-56 85,000.00 594-1 Industrial and construction equipment (Chain Belt Co.) 2-16-56 120,000.00 Do Do DEBT CEILING AND LOANS ~ Continued 59 Status of i 371 INCREASE Undisbursed Balance ! Repayment Terms Repaid Disbursed Outstanding $ $ $ loans Int. % $ Principal Installments (Semiannually - Quarterly - Monthly) (Credit canceled) 110,000.00 110,000.00 16,900,730.00 9,837,080.00 7,063,650.00 2,335,617.85 400,391.88 1,935,225.97 1 ,801,873-82 1,801,873.82 5,051 ,960.23 4,541,960.23 510,000.00 4 10 Sa. beg. 8-1-53 ($106,039.77 of credit canceled) 4,094,468.57 3,276,712.79 817,755.78 6 5 Quar. beg. 7-31-56 ($30,531.43 of credit canceled) 13,624.73 2,441.26 11,183.47 6,365.61 1,591.40 4,774.21 ($84.39 of c r e d i t canceled) 3,868.31 ($2,381.69 of credit canceled) 2,298.52 ($385.30 of credit canceled) 4,563.10 ($1,536.90 of c r e d i t canceled) ($2,557.26 of c r e d i t canceled) 4 35 Sa. beg. 7-27~54 ($2,079.15 of c r e d i t canceled) Repaid ($148,126.18 of credit canceled) (Credit canceled) 3,868.31 3,064.70 766.18 4,563.10 ($14,375.27 of c r e d i t canceled) 11,100.00 8,942.74 3,193.80 5,748.94 3^» .32 24,200.09 4,541.41 19,658.68 1,161.70 10,338.30 10,338.30 1,200,000.00 37,500.00 3,500,000.00 5 1/2 10 Sa. beg. 2 y r s . from date of note (Credit canceled) Do Do 372 DEBT CEILING INCREASE CURRENT CREDITS Credits Authorized Country and Obligor (Guarantors In Parentheses) Credit No. U . S . Products Financed (Participating Exporters in Parentheses) Venezuela - continued Cia. Anon. La Electric!dad de Can 620-1 Steam boiler (Babcock & Wilcox Co.) C. Adrianza & C i a . , S. A. 609-1 Tractors and related equipment (Massey-Harris-Ferguson, Inc.) S. A. Eugene Capucio & Cia., Sociedad Tecnica y Comercial 642-1 Cia. Anonima Tecnomat 8-11-55 he vol vedl 000.00 488.59 94, 488.59 Agricultural and e l e c t r i c a l equipment (Fairbanks, Morse & Co., Inc.) 2-13-55 100, 000.00 640-3 Power shovels and mixers (Koehring Inter-American Co.) 1-27-56 580-3 Tractors and earthmovers (LeTourneau-Westlnghouse Co.) 3- 9-56 637-3 Power shovels, draglines, e t c . (Baldwin-Lima-Hamilton Corp.) 1-19-56 he vol vedl ),000.00 ',514.20 107.514.20 22,750,191.20 Miscellaneous Latin America: Machine tools Machine Affiliates Trading Corp. Amtea Corporation 2-15-50 he volved ,500,000.00 317.491.76 5- 6-5M hevolved 3,000,000.00 45.820.25 4,863,312.01 Total 2,158,358,738.74 Latin Amer State of South Australia (Commonwealth of Australia) 535 Equipment for uran ing Stanhi11 829 T e x t i l e equi pment Holdings, Limited l mining and process- |10- 9-52 9-14-56 5,937,509.27 350.000.00 6,287,509.27 DEBT CEILING AND LOANS ~ 373 INCREASE Continued Status of Undisbursed Balance Loans Repaid K Repayment Terms Outstanding Principal Installments (Semiannually - Quarterly - Monthly) ($2,758.78 of c r e d i t canceled) 54, 402.36 19,488.59 (Credi t canceled) Do 41,593.08 77,1+57-44 30.056.76 7.514.20 22.542.56 4,940,967.38 13,631,367.70 10,114,877.92 3,516,489.78 327,582.55 2.930.782.78 45.820.25 4,420,691.99 363,312.01 701,564,075.76 481,310,535.95 850,164,836.91 4,399,694.38 14 Sa. beg. 7-1-55 (Credi t canceled) 374 DEBT CEILING INCREASE CURRENT CREDITS Credits Authorized Country and Obligor (Guarantors in Parentheses) Credit No. U . S . Products Financed (Participating Exporters in Parentheses) New Zealand: Government of New Zealand 556 Materials, equipment, and services for lumber, pulp, and paper project Frederic W. Smith, Ltd. 578-2 Agricultural and industrial equipment (The Oliver Corp.) 2-11-54$ 9- 1-55 feevolved 16,000,000.00 120,000.00 192.468.97 16,192,468.97 Total Oceania 22,479,978.24 Total active credits 5,572,379,694.43 Terminated 2,708.394.001 .54 credits ,280,773,695.97 Add: Total participation credi ts by others Total authorizations 210,335,995.67 8,491,109,691.64 DEBT CEILING AND 375 INCREASE LOANS — Continued 63 Repayment Terms Undisbursed Balance Disbursed Outstanding int. 11,700,000.00 4 3/4 20 Sa. beg. 11-15-56 $ 3,000,000.00 $ 90.008.50 102.1+60.47 72.468.97 29.991.50 i 3,090,008.50 13,102,460.47 1,372,468.97 11,729,991.50 3,090,008.50 19,039,969.74 2,910,283.86 16,129,685.88 1,535,632,561.12 3,831,124,975.12 1 ,227,980,960.23 2,603,144,014.89 1.573.033.379.04 1.573.033.379.04 5,404,158,354.16 2,801,014,339.27 1,535,632,561.12 13,000,000.00 $ Repaid 1,300,000.00 $ % Principal Installments (Semiannually - Quarterly - Monthly) ($ 205,622,158.19 of credits canceled) Do ($1,135,360,622.50 2,603,144,014.89 ($1,340,982,780.69 Do 376 DEBT CEILING INCREASE CUMULATIVE STATEMENT OF LOANS AND AUTHORIZED CREDITS February 1934 - June 1957, Inclusive $8,491,109,691.64 Authorizations Authorizations taken over by others, without recourse to Eximbank, cumulative: $ 28,317,200.04 168,018,795.63 14.000.000.00 Latin Ar Europe Asia Cancellations and expirations 1,340,982,780.69 Export-Import Bank Funds Disbursements Repayments Outstanding loans 210,335,995.67 Commercial Bank Funds $4,947,200,336.02 $456,958,018.14 5,404,158,354.16 2,369,489,506.42 431,524,832.85 2,801,014,339.27 2,577,710,829.60 25,433.185.29 2,603,144,014.89 Authorizations not disbursed 1,535,632,561.12 Total of outstanding loans and balance of authorizations not disbursed 4,138,776,576.01 Lending authority assigned by Bank under provisions of Public Law 30 - 83rd Congress for cotton Insurance Uncommitted lending authority 50,000,000.00 811,223,423.99 EXPORT-IMPORT BANK OF WASHINGTON Credits Authorized July 1 to December 3V» 19£7 Country and Obligor Credit Number Purpose (Name of Supplier in parenthesis) 949 For rayon tire cord plant (Rayon Consultants Inc.) 10- 4-57 Credit Authorized Date Amount Interest % Repayment Terms ASIA (2) India National Rayon Corporation, Ltd. (1) Indones ia Republic of Indonesia 964 Aircraft and spare parts (Convair Division of General Dynamics Corp.) 11-22-57 (2) I ran Diesel White Co., Ltd. 663-3 Diesel engines (Cummins Diesel Exp. Corp. 11-14-57 643-1 Truck chass is (The White Motor Company) 12-31-57 747-6 Truck chassis (Mack Trucks, Inc.) 12-10-57 928 Agricultural commodities 932 969 Turbo generating unit (Sntl . Gen. Elec. Co.) For expansion of steel mill Turbo generating unit Cotton Turbo generating unit (Westinghouse Electric Intl. Co.) Expansion of steel mill 970 Turbo generating unit (2) (2) (1) (1) (1) (1) (1) (1) (1) (1) Do The Millard Company, Ltd. Japan Government of Japan or The Bank of Japan Tohoku Electric Power Co. Fuji Iron & Steel Co., Ltd. Tokyo Electric Power Co. The Bank of Japan Kyushu Electric Power Co., Inc. Yawata Iron & Steel Co., Ltd. The Chubu Electric Power Co. See footnotes Page 7. 935 944 947 962 $ 1,800,000 1,781,000 5 1/2 10 Sa. beg. 7-31-58 W 11,000 (Increase & revolving) O 81,000 46,500 (Increase) D r a f t s a t 12 months W 5 1/2 16 Sa, beg. 3-1-60 H 5 5 4 5 20 Sa. beg. 12-15-59 30 Quar. beg. 4-5-59 D r a f t s at 12 mos. 34 Sa. beg. 3-1-60 115,000,000 4 1/2 7-23-57 7,300,000 8- 1-57 9-12-57 9-13-57 11-14-57 10,300,000 4,800,000 60,000,000 5,000,000 12-13-57 26,000,000 5 3/4 24 Sa. beg. 3-31-61 12-13-57 6,700,000 5 3/4 34 Sa. beg. 3-15-60 7- 2-57 1/2 3/4 1/2 3/4 CO 00 Purpose (Name of Supplier In p a r e n t h e s i s ) Country and Obligor (2) (2) Pakistan Pakistan Internationai A i r1i nes Do 953 954 A i r c r a f t and spare p a r t s (Lockheed A i r c r a f t Corp.) A i r c r a f t spare p a r t s ( C u r t i s s - W r i g h t Corp.) Credit Authorized Date Amount 10- 9-57 10- 9-57 $ Interest % 2,828,000 456,500 $242,104,000 TOTAL ASIA EUROPE w w Austria (1) Lambacher Flachsspinnerei 956 Textlle machinery 10-24-57 (1) 913 Steel mill equipment 10-31-57 886-1 Concrete block machine and attachments (Besser Co.) 11-29-57 Oesterreichisch-Alpine Montangesellschaft (ALPINE) (2) (2) (2) (2) Be 1 giurn Van Thuyne's N. V. Denmark Georg E. Mathiasen, Aktieselskabet 0° France Compagnie Nationale A i r France 8,150,000 (Increase) 6 5 3/4 6 Sa. beg. 6 mos. from dates of notes 27 Sa. beg. 8-15-62 ^ —. ^ O 744-8 38,000 o Steam generators (Clayton Manufacturing Co.) Steam generators, heaters, and dynamometers (Clayton Mfg, Co. 8- 1-57 8-22-57 20,000 (Revolving 945 Jet aircraft, spare engines and parts (Boeing and United Ai rcraft) 9-12-57 46,000,000 11- 5-57 115,000 744-9 (2) Ice1 and Rafmagnsveita Reykjavi 579-4 Steam boiler (Combustion Engineering, Inc.) (1) Italy FIAT, S . p . A . 931 Equipment for automobile production 16,500 7-23-57 3,350 5,000,000 K 5 1/2 10 Sa. beg. 6-15-59 3. Country and QblIgor (1) (2) Spain Red Nacional de los Ferrocarrfles Espanoles (RENFE) Sweden A n g l o - N o r d i c T r a k t o r A/B Credit Number Purpose (Name o f S u p p l i e r in p a r e n t h e s i s ) 955 Diesel l o c o m o t i v e s , t o o l s , and equipment 580-7 Tournapul1 (LeTourneau-Westlnghouse Co.) Credit Authorized Date Amount 10-17-57 $ 8,000,000 8- 1-57 10,000 TOTAL EUROPE Interest % Repayment Terms 5 3/4 20 Sa. beg. 3-31-60 $67,352,850 g W H LATIN AMERICA O (2) (0 (0 (2) (2) Brazil C i a . de Armazens Gerais do Estado de Pernambuco Acos VI1 l a r e s , S. A , Soc. Tecnica de Fundicoes G e r a i s , S. A , Vemag S/A, V e i c u l o s e Haquinas A g r i c o l a s F i g u e r a s , S, A , Do (2) (2) (2) C i a , B r a s ! l e i ra de Maquinaria Bo 936 940 943 609-5 737-10 958-3 951 952 (2) C i a . de Armazens Gerais do Estado de Pernambuco (CAGEP) L i o n , S. A . , Engenharia e Importacao Do 958-1 (2) Estabelecimentos James 737-12 (2) (2) 776 737-11 Tractors ( A l l i s - C h a l m e r s M f g . Co.) For expansion o f s t e e l foundry For expansion o f i r o n foundry T r a c t o r s and graders (Massey-Harris-Ferguson, I n c . ) Diesel t r a c t o r s ( C a t e r p i l l a r T r a c t o r Co.) Disk plowing harrows (Rome Plow Co.) A g r i c u l t u r a l equipment ( A l l i s - C h a l m e r s M f g . Co.) Diesel cane t r a c t o r s (Thomson Machinery C o . , I n c . ) Grain storage e l e v a t o r s ( B l a c k , S i v a l l s &- Bryson, I n c . ) T r a c t o r s and s u b - s o i l e r s ( C a t e r p i l l a r T r a c t o r Co.) Disk plowing harrows (Rome Plow Co.) Diesel t r a c t o r ( C a t e r p i l l a r T r a c t o r Co.) w 8- 6-57 8-22-57 69,600 2,320,000 5 3/4 12 Sa. beg. 1-15-60 9- 5-57 2,558,000 5 3/4 12 Sa. beg. 5-15-60 9- 5-57 56,000 P Q % 9- 5-57 64,000 W 11-15-57 30,000 ft 10- 9-57 66,300 10- 9-57 10-24-57 32,100 182,000 (Increase) 11- 5-57 93,000 11- 5-57 36,000 11- 5-57 6,300 CO CO OO (2) (2) (2) (2) (2) (2) (2) Country and Obligor Brazl1 - continued Eatabelecirnentos James Frederick C l a r k , S . A, Sotreq S , A. de Tratores e Equipamentos Oo Credit Number Purpose (Name of Supplier in parenthesis] 958-2 Disk plowing harrow (Rome Plow Co.) Diesel tractors ( C a t e r p i l l a r Tractor Co.) Disk plowing harrows (Rome Plow Co.) do 737-13 958-4 Importadora de Ferragens, S. A , Do 958-5 M a r t i n , Representacoes e Comerclo, S. A, Do 737-15 737-14 11-22-57 1,200 11-22-57 14,800 U-29-57 22,100 11-29-57 4,400 H 11-29-57 18,900 o 11-29-57 2,400 s 12- 5-57 29,900 Q w w 12,500,000 5 1/2 12Q_uar. beg. 1-1-59 Colombia Banco de l a Republics 930 Refinance purchase of U. S. products 7-18-57 60,000,000 5 1/2 12 Quar. beg. 15 mos. a f t e r date of note Parana Equipamentos, S . A. Do (2) (0 15,300 7-18-57 (2) (1) 11-15-57 Capital goods 587-5 (0 89,000 937 A l a g g l o , S. A. (1) 11-15-57 973 958-7 (2) (2) % 550 Chile Banco Central de Chile 737-16 (2) Oscar Amorim, Comercio, S. A. Do (2) $ Servicos Aereos Cruzeiro do S u l , S. A. C l a , B r a s M e i r a de M a t e r i a l F e r r o v i a r i o (COBRASMA) Cobrasma-Rockwel1 Eixos S.A. 958-6 961-1 (2) H - 5-57 \nterest Disk plowing harrows (Rome Plow Co.) Diesel tractors and attachments (Allls-Chalmers Mfg. Co.) Diesel cane tractor (Thomson Machinery Co., I n c . ) Diesel tractors and attachments ( C a t e r p i l l a r Tractor Co.) Disk plowing harrows (Rome Plow Co.) Tractors and harvester combines (Minneapolis-Moline Co.) Diesel tractors and attachments ( C a t e r p i l l a r Tractor Co.) Disk plowing harrows (Rome Plow Co.) A i r c r a f t and spare parts (General Dynamics-Convair) Equipment for manufacture of axles and parts do C i a . D i s t r i b u i d o r a AgroIndustrial Do (2) Diesel tractors and attachments ( C a t e r p i l l a r Tractor Co.) do Credit Au thorlzed Date Amount 965 737-17 958-8 971 972 12- 5-57 13,800 12-10-57 75,000 12-13-57 38,000 12-13-57 24,000 12-31-57 2,105,525 12-31-57 1,620,000 5 3/4 12 Sa. beg. 12-15-59 12-31-57 5,320,000 5 3/4 12 Sa. beg. 9-15-60 O 5. Country and O b l i g o r (2) (2) Costa Rjca Beeche & F a i t , L t d a . , and Qjjiros & U l a t e , L t d a . Machinery & T r a c t o r s , L t d . Do (2) (2) Beeche & F a i t , L t d a , , and Quiros & U l a t e , L t d a . Credit Number Purpose (Name o f S u p p l i e r j n p a r e n t h e s i s ) 747-8 Dump t r u c k s (Mack T r u c k s , i n c . ) Semi-trailers (Fruehauf T r a i l e r Co. Truck t r a c t o r s (Mack T r u c k s , 1nc.) Concrete mixers (Chain B e l t Co.) 725-1 747-9 959 Cred I t Au t ho r i zed Date Amount 7-23-57 $ 6,800 8 - 6-57 16,100 10-31-57 22,000 10-31-57 17,500,000 Cuba Cuban Telephone Co. 960 Expansion o f telephone system (2) Guatemala F. Kong e H i j o s , L t d a . 654-1 Plant f o r s h o r t e n i n g & salad o i l s (Wurster & Sanger I n t l . I n c . ) 8-15-57 165,000 934 For expansion o f sugar m i l l 8 - 1-57 1,000,000 (0 (2) 929 (2) Cerveceria Moctezuma, S. A. 711-3 Do 885-1 (2) L. M. B y e r l y , S . A. 636-2 (2) T r a c t o r e s e Implementos de S i na1oa, S h A. Embotelladora la F a v o r i t a , S. A. Cerveceria Cuauhtemoc, S. A. C i a . Fundidora de F i e r r o y Acero de Monterrey, S. A. Cerveceria Moctezuma, S. A. 636-4 (2) (2) (D (2) (2) 6 5 1/2 30 Sa. beg, 12-15-59 4 Ann. beg. 12-1-58 Q Mexico Zinc N a c i o n a l , S. A . (2) Repayment Terms 133,500 8 - 6-57 (0 Honduras C i a . Azucarera Hondurena, S. A . Interest % 711-4 941 801 957 968 Spray d r y e r (Bowen E n g i n e e r i n g , I n c . ) L i f t t r u c k s and p a r t s (The Yale & Towne Mfg. Co.) Water p u r i f i c a t i o n equipment (The P e r m u t i t Company) Land l e v e l e r s , g r a d e r s , d i t c h e r s , e t c . (Eversman M f g , Co.) Land l e v e l e r s and scrapers (Eversman Manufacturing Co.) I n d u s t r i a l warehouse t r u c k (The Yale & Towne M f g . Co.) T i n can p l a n t Expansion o f s t e e l m i l l Conveyor machinery (Alvey Conveyor Mfg. Co. $• Alvey Conveyor Engineering Co.) Pasteurizers (Barry-Wehmi1ler Machinery Co.) 7- 9-57 15,855 o 7-12-57 161,600 > 7-23-57 18,850 8 - 6-57 8 - 6-57 8-15-57 8-23-57 10-31-57 10,000 ( I n c r e a s e & Revolving) 21,000 2,800 10-24-57 350,000(P) 16,000,000 (Increase) 140,000 12-10-57 201,000 5 3/4 30 Sa. beg. 6-15-61 CO GO CO 00 to (2) (2) (2) Country and QblIgor Mexico - continued Concretos Alta ResSstencia, S. A. de C. V. et al Triplay de Parral, S. A, Abastecedores de Maqulnaria, S. A. (2) Panama Empresas Panamenas, S. A, (2) Peru Republic of Peru (2) Credit Number Purpose (Name of Supplier tn parenthesis) Credit AuiLhorized Date Amount 750-4 Truck-mounted concrete mixers (Construction Machinery Co.) Equipment for manufacture of plywood (E. V. Prentice Co.) Diesel engines and generator sets (Harnischfeger Corp.) $ 967 664-5 580-9 933 938 946 (2) Enrique Ferreyros & Cia., S. A. Juan Magot, S. A, 942-1 (2) Carrocerias Metalicas, S. A. 948 (1) (2) Marcona Mining Company 963 Comercial Industrial Peruana, 580-10 S. A, (2) 789-2 (2) Venezuela S. A. Eugene Capucio y Cia. 58O-8 (2) Comanil, C. A. 642-2 °/o Repayment Terms 46,000 12-10-57 116,700 12-31-57 54,000 9-26-57 23,000 H o S. A. Fabrica Nacional Texti 1 "El Amazonas'1 Herbert Telg« (2) Tournapulls with scrapers (LeTourneau-Westinghouse Co.) 11-22-57 Interest Hospital equipment (American Hospital Supply Corp.) Textile machinery (Whitin Machine Works) Water pumps & related equipment (Jacuzzi Bros., Inc.) Fish meal plant (Standard Steel C o r p o r a t i o n ) Turbine and c e n t r i f u g a l pumps (The Deming Company) Bus body p a r t s (DIvco-Wayne C o r p o r a t i o n ) I r o n ore b e n e f i c i a t i o n p l a n t Tournatractor (LeTourneau-Westinghouse Co.) Drills, air compressors & related equipment (LeTourneauWest i nghouse Co.) Truck and industrial scales (Fairbanks, Morse & Co.) 8- 1-57 280,000(P) 8-15-57 9,800 8-23-57 30,000 9-13-57 48,000 9- 5-57 15,000 10- 3-57 36,000 11-14-57 12-13-57 10,000,000 13,000 8-30-57 65,000 9-10-57 31,000 3 20 Sa. beg. 6-10-60 ) Country and Q b l I g o r Credit Number Purpose (Name o f S u p p l i e r in p a r e n t h e s i s ) M i s c . L a t i n America American & F o r e i g n Power 939 C o n s t r u c t i o n programs o f subsidiarles Credit Authorized Date Amount 8-22-57 $ 25,000,000 TOTAL LATIN AMERICA $158,9^0,180 TOTAL CREDITS AUTHORIZED $468,397,030 EXPORTER CREDIT LINES 2 Increases 4 Authorized $ 115,000 11,300,000 $11,415,000 (1) (2) (P) Designates credit authorized on request of Overseas purchaser of U. S. products, Designates credit authorized on request of U. S, exporter or financial institution. Designates Exlmbank participation in credit extended by U, S, financial institution. 2 Country and Obiigor Credit Number Purpose Credit Authorized Date Amount ALLOCATIONS UNDER CREDITS PREVIOUSLY AUTHORIZED AFRICA Union of South Africa Merriespruit Gold Mining Company, Limited Buffelsfontein Gold Mining Company, Limited Do Hartebeestfontein Gold Mining Company, Ltd. 498-z W - 1-B 498-1-C 498-1-A Mining equ ipment, m a t e r i a l s and services do do do 7- 2-57 7- 9-57 7- 9-57 10-17-57 $ 126,683 (Increase) 723,900 (Increase) 900,600 1,416,023 (Increase) ASIA Indones ia Republic of Indonesia 472-1 Cement plant 577-C Diesel locomotives and steam generators Philippines China Banking C o r p o r a t i o n Approved t r a n s a c t i o n s : Transport Contractors, Inc. 538^A-5 Ysmael S t e e l M f g . Co. Kaw Sek & Co. C e n t r a l Macaroni C o . , I n c . 538-A-6 538-A-7 538-A-8 Phi 1ippine Bank of Communications Approved transactions: Insular Yebano Tobacco Corp. 538-B-4 Imperial Government of I ran Mahogany Products (Phil.) 3nc. 53&-B-5 12-13-57 700,000 (Increase) 7- 9-57 10,000,000 Machinery, equipment, m a t e r i a l s , and services do do do 10-30-57 83,000 U-14-57 11-26-57 12- 4-57 68,000 19,000 22,000 Machinery, equipment, m a t e r i a l s , and services do 9-16-57 88,000 11-25-57 35,000 9. Credit Authorised Date Amount Country and Obiigor Credit Number Philippines - continued Prudential Bank & Trust Co. Approved transactions: Crown Textiles Corp, 538-D-5 Machinery, equipment, materials, and services 11-19-57 Philippine Bank of Commerce Approved transactions: Ormoc Sugar Co,, Inc. 538-F-l 11-22-57 70,000 Paramount Textile Mills, Inc. Eastern Textile Mills, Inc. Machinery, equipment, materials, and services do 12- 6-57 250,000 § 538-F-3 12-12-57 111,000 ' 788,427 O 1,199,474 1,224,140 1,170,410 256,545 ft W Central Bank of the Phi 1ippines Approved transactions: International Textile Mills, Inc. P. Floro & S o n s , Inc. Luzon Stevedoring Co., inc. Visayan Electric Co. Manila Bay Spinning Mills, Inc. Superior Gas & Equipment 538-F-2 do $ 41,000 777-A-l Capital goods and services 10- 9-57 777-A-2 777-A.-3 777-A-4 777-A-5 Equipment for a yarn mill Equipment and services do do 11--18-57 11--22-57 12-- 9-57 12--11-57 777-A-6 Machinery, equipment, c o n s t r u c . t i o n m a t e r i a l s and s e r v i c e s 12--20-57 141,645 12-20-57 12-20-57 12-20-57 12-20-57 12-31-57 26,590 29,000 48,350 31,843 852,762 10-29-57 124,724 Marikin* Electric Light Co. Cotabato Light 5- Power Co. Pacific Pearl Button Craft Mercelo Rubber & Latex Co. General Textiles 777-A-7 777-A-8 777-A-9 777-A-l0 777-A-l1 The First National City Bank of New York - Port Area Branch, Manila Approved transaction: 777-B-l Purpose do do do do Equipment and construction steel Machinery, equipment, materials, and services > w CO Oi 10. Country and Obligor Credit Number CO 00 ^ Credlt Authorized Date Amount Purpose LATIN AMERICA Argenti na Celulosa Argentina, S. A. Brazi1 C i a . P a u l i s t a de Forca e Luz C i a . B r a s i l e i r a de Energia E l e c t r i ca Mex i co C i a . E l e c t r i c a Mexicana del C e n t r o , S. A. C i a . E l e c t r i c a Mexicana del S u r e s t e , S. A. C i a . de E l e c t r i c i d a d de M e r i d a , S. A. 826-B-l Equipment f o r pulp and papermaking faci 1 i ties 12-20-57 523-A E l e c t r i c power development 11- 5-57 do 523-C 11- 5-57 $ 6,500,000 275,000 (I ncrease) 275»000 (Decrease) Q W w 760-B Power c o n s t r u c t i o n program 10-17-57 760-C do 10-17-57 760-F do 10-17-57 29,280 (Increase) 508,000 (Increase) 537,280 (Decrease) H _ g £j £ % — $27,048,116 TOTAL ALLOCATIONS 0 3 O R e c a p i t u l a t i o n of A u t h o r i z a t i o n s J u l y 1 t o December 3 1 , 1957 On request o f Overseas purchasers o f U. S. p r o d u c t s On request o f U. S. e x p o r t e r s or financial institutions Total c r e d i t Exporter C r e d i t authorizations Lines A l l o c a t i o n s under c r e d i t s authorized previously No. Amount 24 $411,865,500 64 56,531,530 88 $468,397,030 6 $ 11,415,000 34 $ 27,048,116 OFFICE OF THE TREASURER ACCOUNTS D I V I S I O N DEBT CEILING INCREASE 387 Senator M A R T I N . Just for information, I notice on page 3, "Reductions in number of uniformed forces, defense/' $328 million. Does that take into consideration increase in compensation in the Armed Forces? Mr. BRUNDAGE. N O ; that is just a reduction in the numbers, and the pay that they are getting now. The increase comes in down below. Senator M A R T I N . All right; thank you. Mr. BRUNDAGE. That comes in down below. Senator M A R T I N . Does the same apply to the item of $615 million reduction of conventional weapons? Mr. BRUNDAGE. That is more than offset by increase missile procurement flow; yes, sir. Senator MARTIN. Thank you. Senator MALONE. What do you call conventional weapons? Mr. BRUNDAGE. It was the artillery used in World War II, and planes. Senator MALONE. We used them in World War I, too. Mr. BRUNDAGE. I hope we aren't buying anything we used in World War I. Senator MALONE. I think you are. The Army had horse collars they used in the Mexican War stored up until 2 or 3 years ago. So, you are sending tanks and soldiers to all these nations and they are dead before the fight starts. Is that what you call the conventional weapons? Mr. BRUNDAGE. The conventional weapons are the older equipment. Senator MALONE. Are ships under the protection of the Air Corps looking for submarines 1,500 miles out from the shore—the surface ships that we are making, the flat tops—is that what you call conventional weapons that we have quit making? Mr. BRUNDAGE. The conventional weapons that we have cut down are those replaced by the newer designs of missiles and the faster planes. Senator M A L O N E . Those that are now obsolete since the World War, were makeshifts, the using flattops and keeping soldiers all over the world. Who do you think you are fooling? Senator M A R T I N . I wonder if the Senator would yield? Senator M A L O N E . I want to know what he means by conventional weapons. I don't mind yielding. Senator M A R T I N . I want to say this: Military weapons have rapidly become obsolete. You don't fight a war with weapons you have on hand at the beginning of a war. War is a terrible thing, but it increases productivity. And when I say productivity, that is not only material output but also new discoveries and inventions. For example, in the line of medicine. War develops surgery and medicine more during a period of 2 or 3 years than probably 50 years of civilian life. The same applies to what we call the conventional weapons. Mr. Chairman, but that is the situation, and it is hard for Mr. Brundage, or anyone else, to make an estimate of the direction or rate of obsolescence of military equipment. Senator M A L O N E . I understand that perfectly, Mr. Brundage— but Mr. BRUNDAGE. This classification was made by the Department of Defense. Senator M A L O N E . Let me finish, and then I will be glad to hear your answer. 388 DEBT CEILING INCREASE Why do you continue for 25 years after the close of a war in which they were used what we call conventional weapons that nobody is ever going to use again? Just to keep some admirals or generals that can't do anything else on the job? You have mentioned a very fine thing here, if you could just wipe everything out but your airpower and your missiles and your submarines and the things you are going to use, you don't need a debtlimit rise, you can put that money where you can really use it and lower the debt and the taxes. But you come in here with a request for $2 billion rise for something that is meant to keep people out of work in this country—that is what they are designed for, these four organizations that you are going into. They do nothing but loan money to American corporations and individuals going abroad to use that cheap labor and to the people in those nations. I didn't know that they were loaning money to nations, but I don't put it past them at all, because you have got the same crowd in these loaning agencies that you had 10 and 15 years ago. They haven't changed a thing. And they haven't changed their viewpoint. Their viewpoint is, the more you scatter American capital all over the world to use the cheap labor and produce the stuff and bring it back under that freetrade act, the better off you are. Now, you end up with a greater debt limit every year, but somehow or other, you fool yourself that you are saving money and making money. I don't know how you do it, but the thinking hasn't changed for 24 years. Lord Keynes was quite a man beside a lot of people here that ought to know better. The CHAIRMAN. Mr. Brundage, you have a reduction in Agriculture of $651 million and then you have an increase in agriculture, an increase of $305 million. Mr. BRUNDAGE. We are separating the different programs at your request; some of them are decreasing and others are going up. The CHAIRMAN. Reduction is made mainly, in Commodity Credit; is that right? Mr. BRUNDAGE. That is right. The CHAIRMAN. H O W can you control that? Mr. BRUNDAGE. Well, we were providing for everything that we are required to do by law. The CHAIRMAN. H O W have you reduced the Commodity Credit Corporation's operations by $651 million? Mr. BRUNDAGE. The detailed schedule gives a little more information, Senator. It is on page 4 of the accompanying schedule, $432 million is the decrease reflected in purchases of commodities. The prices of certain products were estimated lower, and the produced quantities are expected to decrease, because of the soil bank, the conservation reserve part of the soil bank. The CHAIRMAN. Part of the soil bank terminates with crop-year 1958, does it not? Senator J E N N E R . Suppose, Mr. Chairman, that Congress decided that it shall not terminate, because we have a new program of some kind—of course, naturally that can't be reflected in this statement— in other words, you are anticipating that Congress will go along with this present proposal? Mr. BRUNDAGE. That is right. DEBT CEILING INCREASE 389 Senator WILLIAMS. That is the only basis you could operate on. Mr. BRUNDAGE. That is right. The CHAIRMAN. The soil bank termination is one of the things that Congress is nearly certain to go along with. Are there any further questions? Senator MALONE. IS he through reading his statement? The CHAIRMAN. He has explained the reductions, and next are the larger increases. Mr. BRUNDAGE. The largest increases are the: Development loan fund of the mutual security program, $154 million. These are expenditures, by the way, coming out of previous operations. Atomic Energy Commission, $250 million. The CHAIRMAN. This development loan fund is in the category of foreign loan facilities, that you will furnish a report on? Mr. BRUNDAGE. The CHAIRMAN. Yes. It is a new fund. It is for the purpose of loaning under the mutual security program. They are soft loans. Senator FREAR. That is handled by the Export-Import Bank, is it not? Mr. BRUNDAGE. It is being supervised by a committee of three including the president of the Export-Import Bank, that is right. wSenator FREAR. That is a better term supervised. Mr. BRUNDAGE. Atomic Energy Commission is going up $250 million. The National Science Foundation, $68 million. Veterans' compensation and pensions, $125 million. H H F A for housing grants and mortgages, $283 million. Agriculture conservation reserve, REA, and other programs, $305 million. Commerce, principally CAA and Maritime, $189 million. Defense missiles, atomic ships, SAC dispersal, research and development, and Cordiner pay proposals, $2,015 million. HEW, principally scientific education, $156 million. Development of natural resources, Corps of Engineers and Bureau of Reclamation, $82 million. Postal pay increase, $160 million. The CHAIRMAN. What percent is the postal increase? Mr. BRUNDAGE. That is 6 percent. Classified pay increase other than defense, $179 million. The CHAIRMAN. That is also 6 percent? Mr. BRUNDAGE. That is also 6 percent minimum, with some release from the compression at the top grades. Senator WILLIAMS. And they are also based upon the assumption that, whatever the debt, the increase would be 6 percent, and the effective date would be July 1 ? Mr. BRUNDAGP:. That is correct, Senator. Senator WILLIAMS. And, on any effective date prior thereto, would be increases in these accounts? Mr. BRUNDAGE. That is right. That would affect 1958. Proposed provisions for defense and other contingencies, $600 million. Five hundred is Defense contingencies, and increase in other contingencies is $100 million. 390 DEBT CEILING INCREASE Other increases which are detailed in the accompanying statement, $292 million. Mr. Chairman, this analysis of changes from 1958 to 1959 shows several things which are important to this committee in its consideration of legislation to change the legal debt limit. The CHAIRMAN. Could you point out in these increases the new programs that are recommended that do not now exist? Mr. BRUNDAGE. I don't know as we separated the new programs. The CHAIRMAN. Would you mind showing the new programs that would be started? Mr. BRUNDAGE. We will look that up. (The material referred to follows:) NEW PROGRAMS ESTIMATED E X P E N D I T U R E S FOR FISCAL YEAR 1959 Million Federal Civil Defense Administration: Civil defense assistance to States__ $20 D e p a r t m e n t of Defense—Military: Cordiner report 508 Civilian pay adjustment 205 Health, Education, and Welfare: Promotion of science and general education 75 Civilian pay adjustments: Postal employees 160 Classified employees (other t h a n D O D ) 179 Specific items covered by "Allowance for contingencies": 8th winter Olympic games 4 Registration and safeguarding of union and welfare a n d pension funds 3 Aid to medical-dental schools 3 Area assistance 11 Mr. BRUNDAGE. First, it shows our efforts to achieve economies. Our recommendations for appropriations and for legislation will lead to even greater savings after 1959. In view of the $3,709 million of decreases proposed in the 1959 budget, I do not think that further decreases, that would appreciably ease our debt limit problem, can be made without undue risk to our national defense or without drastic changes in basic legislation going far beyond the practical recommendations of this administration. Second, the analysis shows that holding budget expenditures in 1959 to the estimated total of $73.9 billion will require congressional cooperation—cooperation not to increase recommended appropriations and cooperation to enact proposed legislation leading to economies. If some of the estimates in the budget should be raised by congressional action, the margin within the debt limit for seasonal borrowing for flexible debt management and for possible emergencies would be even smaller than anticipated. Third, we must recognize that, when we are talking about the budget expenditures and receipts, we are talking about estimates that fluctuate, but when we talk about the debt limit we are considering a legally fixed figure. A slight variation in budget results as compared with budget estimates, especially as to the timing of receipts, could cause us serious trouble. In the week of March 18, 1957, deposits totaled $7.5 billion. If there had been a heavy storm, and there would be a delay, it might have caused embarrassment. I have already mentioned, as has Secretary Anderson, the need for larger cash balance and the desirability of being able to go to the DEBT CEILING 391 INCREASE market for refinancing at favorable times of the market rather than on the exact date when the securities to be refinanced fall due. I won't read the detailing, but it will be put in the record. (The tables accompanying the prepared statement of Mr. Brundage are as follows:) Decreases and increases in expenditures, 1959 compared with 1958, as shown in 1959 budget document [In millions] Decreases InUnder Under existpro- creases ing posed legisla- legislation tion Legislative branch . . The judiciary Executive Office of the President... Funds appropriated to the President: Mutual security program $13 0 0 $0 0 0 60 0 Do Other $23 2 0 179 103 0 0 Independent offices: Airways Modernization Board. 0 0 22 Atomic Energy Commission... 0 0 250 Central Intelligence Agency... Civil Service Commission 0 1 0 0 6 0 0 343 0 0 1 0 29 0 0 0 0 26 1 Commission on Civil Rights . . . Export-Import Bank Do Farm Credit Administration... Federal Civil Defense Administration. Do Federal Communications Commission. Federal Home Loan Bank Board. Federal Power Commission Federal Trade Commission General Accounting Office _.. Interstate Commerce Commission. National Advisory Committee for Aeronautics. Remarks 1 1 5 0 0 0 0 0 0 0 0 0 0 1 0 3 1 0 0 Reflects reduced appropriations for defense support in 1957 and 1958. Primarily increased disbursements from the recently established development loan fund. Substantially all of this reduction is in expansion of defense production, reflecting decreased deliveries of aluminum and titanium. To accelerate research and development program to increase capacity of the Federal airways. Primarily for increase in raw materials, weapons, and reactor development. Construction of new building. Reflects more current reimbursements for investigations. For full-year cost of new agency. 1958 includes loan to Great Britain. Decrease in receipts under old RFC loans. Small decrease in estimated receipts. Reduction of procurement for stockpile of emergency supplies, etc. Primarily for new program to assist States. To handle increasing workload. Reflects anticipated increase in receipts from fees, insurance premiums, etc. Reflects recent rise in program level. For increased operations in the field. Increase in motor carrier, regulatory, and compliance activities. 6 Primarily for stepup in research and development involving missiles, space vehicles, etc. 1 Reflects increase in spending on long lead time land purchases. 1 To reduce backlog in unfair labor practices cases. Termination of major costs for scientific equipment for International Geophysical Year. 68 Primarily for increased grants to expand and improve education in the sciences and for basic research. 0 0 Project nearing completion. 0 0 0 0 14 0 Renegotiation Board St. Lawrence Seaway Development Corporation. Securities and Exchange Commission. Selective Service System 0 25 0 0 0 0 1 Increase in work programed. 0 0 1 Small Business Administration 29 0 To build up pool of registrants and to process records of standby reserve. Receipts from collections available for relending will increase volume of new loans about the same. Decrease in receipts reflecting progress in liquidation of old R F C loans. National Capital Planning Commission. National Labor Relations Board. National Science Foundation.. Do Do 1 392 DEBT CEILING INCREASE Decreases and increases in expenditures, 1959 compared with 1958, as shown in 1959 budget document—Continued [In millions] Decreases InUnder Under pro- creases existposed ing legisla- legislation tion Independent offices—C ontinued Smithsonian Institution $6 Tariff Commission Tenessee Valley Authority. U. S. Information Agency... Veterans' Administration... Do. Other independent agencies General Services Administration. DoHousing and Agency. Do Home Finance Department of Agriculture. 283 651 Do. 37 Do- 268 Department of CommerceDo Do- Department of Defense: Military functions.. 189 1,095 Remarks For construction of new Museum of History and Technology and preparation of exhibits. Primarily for construction of new power facilities to meet needs of area. Principally for extension and intensification of program and for completion of major transmitter. Decrease in direct housing loans, program expires June 30,1958 ($150); readjustment benefits, reflecting decline in number of eligible veterans ($103); decreased workload and economies in general operating expenses. Substantially all of increase ($125) is in compensation and pensions, which reflects both normal growth in requirements and full-year cost of rate increases granted last fall. Various economies. Most of reduction is in stockpiling program ($45) where purchases from defense production program are not expected and deliveries under old contracts will decline. For increased progress on site acquisition and design under lease-purchase program and small amounts under various other programs. Increased receipts from operations in Federal Housing Administration. Expenditures and purchases of special assistance mortgages by FNMA under prior approvals. College housing and public facility loans expenditures also rise as do contributions for public housing and several other activities. Largest reduction ($432) is in CCC, reflecting decrease in purchases of commodities. Soil Bank's acreage reserve shows decrease of $117 reflecting decision to terminate program at end of 1958 crop year. Farmers' Home Administration loan disbursements also decrease by $55. Larger disbursements on Rural Electrification Administration loans. Majority of increase is in Soil Bank's conservation reserve program ($190) in lieu of continuing acreage reserve. Various savings and economies. To transfer financing of forest highways and public lands highways to highway trust fund. Primarily in Civil Aeronautics Administration for stepped up program for modernizing air navigation facilities; Maritime activities increase $20 for progress payments on ship construction. Primarily reductions of military strength ($328) and lessening payments for procurement of conventional aircraft ($615). Economies in operation and maintenance and procurement of conventional ammunition account for the bulk of the remaining reductions. Accelerated production of missiles, missile ships and atomic submarines account for about $580; intensified research and developments, $274; construction of facilities for SAC and ballistic missiles, $133; and proposed pay adjustments, military and civilian, $713. 393 DEBT CEILING INCREASE Decreases and increases in expenditures, 1959 compared with 1958, as shown in 1959 budget document—Continued [In millions] Decreases InUnder Under pro- creases existposed ing legisla- legislation tion Department of Defense—Con. Civil functions: Corps of Engineers. . Do Other $30 $0 7 0 Do.___ 11 Department of Health, Education, and Welfare. Do Do Department of the Interior Do 7 40 -._ 156 _ _- 33 0 0 _. 43 0 Department of Justice Department of Labor 0 Do Post Office Department Department of State District of Columbia .. 5 2 15 700 0 0 16 ___ 60 0 _ 0 0 Do Allowance for proposed legislation and contingencies: Pay adjustment: Postal Other (excluding Department of Defense). Defense contingencies Other contingencies Total 49 32 Do Treasury Department Do $65 10 3 5 0 0 0 0 160 179 0 0 0 0 500 100 2,971 738 4,858 Remarks Primarily on older construction projects approaching completion. For 1957 and 1958 new construction starts. Completion of Panama Canal lock overhauls and minor adjustments. Mostly for replacement of facilities to be transferred to Republic of Panama under treaty commitments and first expenditures on construction of Panama Bridge. To revise basis of grants for school operation and construction in federally affected areas. Largest decrease is in public assistance grants as result of payment in 1958 of certain 1957 obligations. In addition, there are numerous minor reductions. Primarily proposed new programs to fulfill critical national needs and to strengthen scientific and general educational capacity ($75) and increased rate of spending on public health grants for projects approved in prior years ($60). which $10 is for 1957 and 1958 construction starts, and acceleration of liquidation of prior year obligations for Indian services account for $13. Increases because of larger workload; for the FBI, prisons and other activities. employees eligible for unemployment benefits. Mostly because of increased claims and benefit workloads in grants to States for unemployment compensation and employment service administration. Proposed postal rate increase. Decrease reflects nonrecurring 1958 contribution for U. N. Emergency Force and various minor reductions. Principal increase is in construction of new State Department building. Smaller increases for strengthening Diplomatic and Consular Service and other programs. Principally for operation by Coast Guard of new loran stations. Increased disbursements under prior year loans. Federal payment to District of Columbia. NOTE.—Amounts of decreases and increases arrived at from analysis of individual items where amount of change is $500,000 or more, i. e., would round to $1 million or more. Thus, changes of less than $500,000 appear as zero. Figures may also vary slightly because of rounding. 394 DEBT CEILING INCREASE Senator J E N N E R . Mr. Chairman, I notice in this review and summary that Mr. Brundage asked to bring here that there is no place or no mention of a retirement, apparently, at least not in this budget, of debt. Now, you are an expert in accounting; I understand that is your background. Did you ever see a budget prepared that didn't provide for payment of some of the debt at some time? Mr. BRUNDAGE. Well, Mr. Senator, in the case of the Federal budget we apply the surplus to the retirement of debt, and as you know, we have reduced our debt over $3 billion in the last 2 fiscal years, fiscal 1956 and fiscal 1957. Now, if we provide for the retirement of debt in the regular budget, and we should have a deficit, we would be borrowing in order to pay off debt; it wouldn't mean anything, you see. Senator J E N N E R . In other words, you apply any surplus to the payment of the debt. Mr. BRUNDAGE. That is right, sir. Senator J E N N E R . But you don't anticipate too much of a surplus under this budget? Mr. BRUNDAGE. I am afraid not. The CHAIRMAN. Mr. Brundage, I would like to ask if the figure of $73,900,000 excludes expenditures from the free use of foreign currency owed to and owned by the United States? Mr. BRUNDAGE. Well, it is taken into consideration, but the foreign currencies are used for certain specific purposes, available for certain purposes. The CHAIRMAN. I t is not included in the expenditure total of $73,900,000? Mr. BRUNDAGE. N O . I have some figures on that. They are not in that. The CHAIRMAN. Those foreign currencies are generated by the money that we send abroad? Mr. BRUNDAGE. By the sale of agricultural products and other transactions, that is right. The CHAIRMAN. I would like you to furnish a statement as to how much in expenditures of these foreign currencies is not included in this present budget expenditure total. And to make it more specific, first, how much foreign currency is being generated abroad from all United States programs, free use and otherwise. And, second, how much of that total is being generated by the agricultural trade development and assistance programs. And there are several others here. I will pass it on to you so you can please furnish that information. Mr. BRUNDAGE. I had a statement prepared. Here it is. The CHAIRMAN. Will you read? Mr. BRUNDAGE. I t is quite a long one. The CHAIRMAN. YOU might read the total of the expenditures and the full statement will be placed in the record. (The following information is presented in response to the questions of the chairman with respect to foreign currencies:) Questions 1 and 2. How much foreign currency is being generated abroad from all United States programs, free use and otherwise? How much of that total is being generated by the Agricultural Trade Development and Assistance Act programs? Answer. Collections of foreign currencies during the fiscal year 1957, as reported in the Treasury Department's Report on Foreign Currencies in Custody of the Treasury Department, are listed below. Amounts are stated in millions of dollar DEBT CEILING INCREASE 395 equivalents, converted a t exchange rates as indicated. "Agreement r a t e s " a r e t h e rates of exchange specified in t h e agreement which generated t h e currencies; " T r e a s u r y selling r a t e s " a r e t h e most favorable rates a t which currencies could be purchased from other sources by t h e agencies. Available in whole or in p a r t for expenditure without charge to dollar appropriations (valued a t agreement r a t e s ) : 1957 M u t u a l security agricultural sales proceeds $422. 8 Agricultural T r a d e Development and Assistance Act 1, Oil. 1 Available only for sale by Treasury to agencies a n d for congressional travel (valued a t Treasury selling r a t e s ) : Surplus property sales proceeds a n d lend-lease recoveries 53. 5 10 percent m u t u a l security counterpart 10. 6 Informational media g u a r a n t y program 5. 5 Contributions for administration of military assistance a b r o a d 11. 2 Contributions for United States forces in J a p a n 83. 1 Interest on deposits 3. 9 Other United States-owned currencies 25. 2 Total collections, United States-owned currencies Currencies held in t r u s t (valued a t Treasury selling rates) 1, 626. 9 9. 1 Total 1, 636. 0 Approximately t h e same volume of receipts as in 1957 is anticipated for each of the fiscal years 1958 and 1959. Although the t e r m " c o u n t e r p a r t " is sometimes used to describe all currencies received by t h e United States without p a y m e n t of dollars, it technically applies only to deposits, under section 142 (b) of t h e M u t u a l Security Act, of foreign currency equal t o t h e local sales value of the non-military-commodity aid provided t o a country or t h e commensurate value of our dollar aid expenditures. At least 90 percent of t h e counterpart currencies are retained by t h e foreign country a n d are excluded from the collections shown above. Mr. BRUNDAGE. This information is in the budget. The CHAIRMAN. It is not included in the total of $73,900,000; is that right? Mr. BRUNDAGE. That is correct. The receipts—this is as of the date—all these figures were taken as of the most recent completely available date, and that was September 30, 1957. The total amounts of United States-owned local currency in the Treasury accounts as of that date were, in the first category, receipts from disposal of surplus agricultural commodities under Public Law 480, sales under title I, were $1,195,230,000. Senator MALONE. I S that dollars? Mr. BRUNDAGE. That is expressed in dollar equivalents, yes. Senator M A L O N E . NOW, is that based on their fixing the price of their currency in terms of the dollar, or the market price of their currency? Mr. BRUNDAGE. These are the conversion rates used by the Treasury; they differ. Senator M A L O N E . And are they the rates set by the foreign nations, or are they the market price for their currency? Mr. BRUNDAGE. The official rates of exchange, I think, in many cases; and in others they are the principal import rates, the rates at which most goods imported into those countries are purchased. I don't think it is the free market. Senator M A L O N E . I see. I have been to all of these nations and one of the things I wanted to find out was how they do this. At the time I was there, for a dollar (which you were required to turn in at the central bank) you got 500 bolivianas, so there is a considerable difference. They would steal two-thirds of the dollar the first "go 21297—58 26 396 DEBT CEILING INCREASE round." That seemed all right to them because our State Department approved. It is not their fault; it is our fault. That is all I wanted to know. How would you recompute this, for the purpose of the information of this committee, on the exchange price of their money with the dollar and compare it? For example, let us take the franc in France. When I was there the first time during the First World War itwas about five to the dollar. I was there the second time in 1947, and it was officially about 300 to the dollar, but on the streets you could get whatever 3^ou wanted for it, up to 500 francs. So it doesn't make any sense to take their estimate of their money. That is the way they have a dollar shortage—you have a dollar shortage, and I have one generally, just spending my income—but a nation can have it by fixing a price of their currency higher than the market, and nobody but a silly Congress will pay it. You understand that. So I would like very much, for the information of this committee, if you would just look up the exchange price and compare the amount of money that we have of nations' currency on the world exchange. I know that idea is entirely foreign to our State Department, Treasury, or am^place else, and has been for 24 years. But I would like to have it. Mr. BRUNDAGE. In some countries there are so many rates that I don't know what you call a free-market rate. Senator M A L O N E . I know what it is, and you will, too, if you look at it. They call it a free-market rate or black-market rate. Mr. BRUNDAGE. I have been abroad many times, and I have found it very difficult. Senator M A L O N E . I t is not difficult to see the difference between between the free-market rate and what they fix on our currency. Mr. BRUNDAGE. We can give you a free market. Senator M A L O N E . Chile, for example, has seven different prices on their currency, used according to what they wanted imported or didn't want imported, or whether they wanted to sell something or didn't want to sell something. I t is not hard to understand. The CHAIRMAN. YOU say it is $1.2 billion. Mr. BRUNDAGE. That is the biggest amount. There are some small receipts from other sources under the assistance programs. The CHAIRMAN. That does not come into the Treasury of the United States? Mr. BRUNDAGE. N O ; those all come into the Treasury, receipts under assistance programs of $23.6 million. The CHAIRMAN. I mean this $1.2 billion which is not included in the budget as an expenditure; where is it? Mr. BRUNDAGE. Well, it was treated as an expenditure, you see, when CCC bought the commodities. And so the commodities were exchanged for these foreign currencies—unless you brought it in, you couldn't treat it again as an expenditure. The CHAIRMAN. But you could take it as a credit, then, couldn't you? There is over $1 billion; where is that money? Mr. BRUNDAGE. Senator Byrcl, when you ask me if we could take this as a credit, I say then the question would arise if you would accept taking it as a credit at the official rate—I judge you wouldn't. Senator MALONE. N O foreign nation ever takes anything at an official rate. But we are the fall guys. We are the ones that pick up the check. But all we have to do is get our feet on the ground and DEBT CEILING INCREASE 397 start being on the side of the taxpa}^ers of America and talk about this money in terms of its real value. Now, then, we keep the money, we don't accredit it to anything; why don't we collect the $10? I mean, after all, I say it is foreign trade. You are giving it away. You know that just as well as I do. Mr. BRUNDAGE. Under the law that Congress passed, under Public Law 480 Senator M A L O N E . We understand that. It has been going on for 24 years. Senator ANDERSON. Under this Public Law 480 program there was a specific provision that it be taken in soft currencies, was there not, and the Congress so directed? Mr. BRUNDAGE. Yes. Senator M A L O N E . Just like free trade and billions to Senator ANDERSON. But the agricultural commodities Europe. were spoiling, and it was a matter of giving them away or selling them for soft currencies, and the decision was reached to sell them for soft currencies. The CHAIRMAN. But this $1.2 billion is converted into dollars, isn't it, the $1.2 billion that you have on hand is converted into dollars? Mr. BRUNDAGE. I t isn't converted into dollars, no, it isn't convertible into dollars, it was merely The CHAIRMAN. The figure is Mr. BRUNDAGE. It is merely a converted estimate in order to get a figure for it; yes. It is a number of local currencies all over the world. The CHAIRMAN. At the current rate of exchange, that represents $1.2 billion? Mr. BRUNDAGE. At the official or principal import rates of exchange. The CHAIRMAN. The point I would like to know is, who controls that money; what is done with it? Mr. BRUNDAGE. The Treasury has custody of it, and by law it may be used for the following purposes: A. To help develop new m a r k e t s for United States agricultural commodities; B. To purchase strategic a n d critical materials for supplemental stockpile; C. To procure military equipment, facilities, and services for t h e common defense; D. For purchase of goods and services for friendly countries; E. For promoting balanced economic development and t r a d e among nations. And that is taken from the act. F . To p a y United States obligations abroad; G. For loans to promote multilateral t r a d e and economic development; H. For financing international educational exchange activities; I. For translation, publication, and distribution of books and periodicals a b r o a d ; J. For assistance to American-sponsored schools abroad as authorized by section 203 of the United States Information and Education Exchange Act of 1948. The CHAIRMAN. Who signs the checks for paying this money out? Mr. BRUNDAGE. The various agencies such as the ICA, Defense, State Department, and Agriculture Department are responsible for these kinds of activities, but they all have to go to the Treasury for it. The CHAIRMAN. D O they go through the Treasury? Mr. BRUNDAGE. The CHAIRMAN. Mr. BRUNDAGE. abroad. Yes. They are not signed in these other countries? I suppose it would be Treasury representatives But they have to go to the Treasury for the money. 398 DEBT CEILING INCREASE The CHAIRMAN. DOCS it go officially through the Budget? Mr. BRUNDAGE. Yes, sir; it goes through the Bureau of the Budget. Senator M A L O N E . Mr. Chairman, I have to leave. Could I ask a couple of questions? In the first place, we all understand that the way we trade horses is on the value that the other man puts on his horse. We have a lot of people in m y State that like to value the horse themselves when they make a horse trade, or they don't trade. We understand that. And because we permit this, of course, we have before us a continual rise in the debt limit and a continual rise in the money that goes abroad and all that. I would like to ask you a question, and if you don't have the answer, would you just provide it for the record. What is the total of all the domestic increases that you estimate for domestic purposes? We talk about flood control and reclamation; we talk about veterans; we talk about rural electrification, but what do these increases that you outline here all amount to in money? Mr. BRUNDAGE. You mean for the year? Senator MALONE. Yes. Mr. BRUNDAGE. Well, it is in the detailed statement; I can put it together for you. Senator M A L O N E . P u t it together for the record, the total amount. What would you estimate it roughly to amount to? Mr. BRUNDAGE. I don't know; I have some figures in my mind I couldn't Senator M A L O N E . I don't blame you. These must have you pretty well mixed up. Senator J E N N E R . That table here shows 4,858 million; is that correct? Mr. BRUNDAGE. I don't know whether that would include all of the items that Senator Malone was referring to. Are you including defense in there? Senator M A L O N E . I don't know. You get it for us and put it in the record. If it is $4 billion or a little over, that is just about the amount of money we are asked to appropriate this vear to give to foreign nations; isn't it? Mr. BRUNDAGE. The total increases for all programs are $4,858 million. (The material referred to follows:) [In millions] Total increases in expenditures, between 1958 and 1959, per previous schedule $4,858 Of which the following might be designated "foreign:" Mutual security program $179 U. S. Information Agency 7 Department of State 16 202 Remainder 4, 656 Of which the following are directly related to the military: Department of Defense $2, 015 Defense contingencies 500 2, 515 Remainder (nonmilitary, domestic) 2, 141 DEBT CEILING INCREASE 399 Senator M A L O N E . I t is about $4 billion that we are asked to give to foreign nations this year. Mr. BEUNDAGE. T O authorize; yes. Senator M A L O N E . Well, I never heard of anything being authorized—— Mr. BRUNDAGE. We already have authorized more than $4 billion. Senator M A L O N E . I never heard of anything being authorized that 3^ou didn't finally spend. So it just means that we are going to give away the amount of money to foreign nations that you estimate may be the increase in domestic expenses if we go through with what Mr. BRUNDAGE. Both military and economic. Senator M A L O N E . HOW much is military? Mr. BRUNDAGE. I think it is $2.2 billion. Senator M A L O N E . $2.2 billion from the $4.8 billion, then, would be about $2.6 billion, wouldn't it? Mr. BRUNDAGE. Yes. Senator M A L O N E . Well, about $2.5 billion is domestic increases that you are talking about, not including national defense. And of course I have already told you, and it can be easily proven, you are spending $15 billion that is not available at all, and have been for several years. There is no talk about trying to cut any of it out, we didn't hear anything from you on that account. But what I w^ould like to know is how much money you are trying to save on domestic affairs. You talk about veterans, you talk about rural electrification, you talk about flood control, you talk about reclamation, you talk about power development, I think when you get all through with it you find out that we are giving away more money than anybody has ever proposed that you spend while few expenditures have been made on flood control or reclamation or power or veterans, but the policy hasn't been set by Congress. Isn't that true? Mr. BRUNDAGE. Yes. Senator M A L O N E . In other words, on your flood control through the Middle West and the Ohio River, for 75 years we have been building flood-control projects when the Arm}' engineers report shows that the benefits exceed the costs. We don't always build them when they say that, but we don't consider them unless they do. Isn't that true? Mr. BRUNDAGE. That is right. Senator M A L O N E . Then when you talk about reclamation and irrigation of public lands and other things, the policy has been set for nearly 60 years that you repay the money without interest, isn't that true? Mr. BRUNDAGE. Yes. Senator M A L O N E . I t has been going on for that long. Now, in the matter of expenditure for power or any commercial production, we set the policy on Hoover Dam (then Boulder Dam) and we set the rate of interest we pay at least as high as and probably higher than the Government pays for the money, isn't that true? Mr. BRUNDAGE. Yes. Senator M A L O N E . Then all of these things that you are trying to save money on are domestic things, and all the things that you are trying to spend money on are foreign things. Mr. BRUNDAGE. That is not true. 400 DEBT CEILING INCREASE Senator M A L O N E . YOU have got foot soldiers in 73 nations. They can't be there for anything at all except to hold up the economy of those nations, because they will be dead when the fight starts. They are sacrificial troops; everybody knows that. Mr. BRUNDAGE. There is a large group that is afraid of the socalled peripheral wars. Senator M A L O N E . Yes, and the man that started that last war in Korea ought to have been impeached. He would not let them win it and would not let them lose it. I have been in Korea; I was there before that war started. I would hate to try to describe to you what I think of anybody that will start a peripheral war with the weapons we now have. I think we would impeach the next man that did it. Let me ask another question or two here. What you are asking for this year is approximately $4 billion for foreign aid. That is about right; isn't it? Mr. BRUNDAGE. That is right. Senator M A L O N E . H O W much are you asking for—is that $2 billion in addition to the $5 billion already authorized, making it $7 billion authorized for the Export-Import Bank? Mr. BRUNDAGE. TWO billion in addition to what you have authorized, yes. Senator M A L O N E . And there is authorized $5 billion. Mr. BRUNDAGE. That is right. Senator M A L O N E . Now, take the International Monetary Fund. How much has that authorization been as far as we are concerned? How much money do we put in it? We put in about 36 percent of it, I think. Mr. BRUNDAGE. Yes. Senator MALOJNE. H O W much? Mr. BRUNDAGE. I don't know right now. Senator M A L O N E . I ask that you make it a part of the record. The CHAIRMAN. He is going to make a complete statement of it. Senator M A L O N E . I Avould like to know the total amount we have authorized annually since their inception for the Export-Import Bank, the International Monetary Fund, the International Bank organized by Mr. Harry Dexter White, and the International Finance Corporation. All we did was change one letter. We had an R F C that spent money in this country, but we finally got tired of that, because we could see what it was doing. (The material referred to follows:) U. S. G O V E R N M E N T SUBSCRIPTIONS TO F I N A N C I A L I N S T I T U T I O N S M A K I N G L O A N S ABROAD Export-Import Bank of Washington—Groivth and lending of the bank in terms of capital authority structure Year Capital structure Lending authority 1934 1936 1939 1940 1941 1945 Common, $1,000,000; preferred, $10,000,000 Common, $1,000,000; preferred, $20,000,000 Common, $1,000,000; preferred, $45,000,000 Common, $1,000,000; preferred, $74,000,000 Common, $1,000,000; preferred, $174,000,000 Common, $1,000,000,000; authority to borrow up to $2,500,000,000 from Treasury. Common, $1,000,000,000; authority to borrow up to $3,500,000,000 from Treasury. Common, $1,000,000,000; authority to borrow up to $4,000,000,000 from Treasury. No statutory limit. Do. Not to exceed $100,000,000. Not to exceed $700,000,000. No change. Not to exceed $3,500,000,000. 1951 1954 Not to exceed $4,500,000,000. Not to exceed $5,000,000,000. DEBT CEILIXG INCREASE 401 CAPITAL STRUCTURE In t h e early years of t h e bank's history its capital was supplied by t h e Reconstruction Finance Corporation. As the b a n k expanded, it secured t h e necessary funds t h r o u g h t h e sale of its preferred stock to the R F C . At t h e end of 1938 t h e preferred stock issue was $45 million, and it reached its peak of $174 million in 1941. These stock issues were replaced in 1946 by the T r e a s u r y ' s holdings of $1 billion, and t h e bank was authorized to borrow $2.5 billion from t h e Treasury. I t s borrowing a u t h o r i t y was raised to $3.5 billion in 1951, and to $4 billion in 1954. T h e b a n k did not borrow directly from t h e Treasury until late in 1946. Since t h a t time it has operated on t h e funds supplied to it by t h e capital stock holdings of t h e Treasury, and its borrowings, together with the funds supplied from its surplus accumulation. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT T h e United States t o t a l subscription is 31,750 shares, totaling $3,175 million, 34.26 percent of t h e total. Of this, $635 million was paid in gold or dollars at t h e establishment of the b a n k in 1947, t h e remainder is subject to call by t h e b a n k only when required to meet obligations of the b a n k created by borrowing or guaranteeing loans. INTERNATIONAL MONETARY FUND T h e United States quota is $2,750 million. T h i s entire a m o u n t WSLS paid in on establishment of t h e fund in 1947: $687,500,000 in gold, t h e remainder in cash or non-interest-bearing demand notes on t h e Treasury. On J a n u a r y 31, 1958, t h e fund held $733 million of United States Treasury notes, the remainder having been drawn by t h e fund for purchase by members. INTERNATIONAL FINANCE CORPORATION T h e United States has subscribed $35,168,000 of t h e authorized $100 million capital of t h e Corporation. This a m o u n t was appropriated in 1957 and the United States is not further obligated. DEVELOPMENT LOAN FUND Three h u n d r e d million dollars was appropriated wTithin t h e m u t u a l security program in fiscal year 1958 for t h e Development Loan F u n d . A request for a n additional appropriation of $625 million, as authorized bv t h e Congress, is included in t h e 1959 budget. Senator MALONE. NOW we have an IFC, which is an International Finance Corporation, spending money like drunken sailors ail over the world; loaning it in addition to these other 3 organizations; the 4 of them, as yon have testified, loaning money to Americans to build plants in foreign nations, to use the cheap labor and come back under the 1934 Trade Agreements Act, as extended—and thank God it expires in June of this year—to destroy the jobs of the men working in this country and to destroy the investments in this country. They are doing it right under your eyes. And I hear people talking on the Senate floor all the time about a great depression. There is only one thing causing the depression, and that is we do not have any domestic market left except the money we appropriate, $40 billion or $44 billion, and spend to buy these American goods right here in this country, and then, as you testified, you loan the money from the Export-Import Bank, and you are very careful each time to say it is to buy machinery to ship abroad. And for what? To install that machinery where the labor is cheaper and send the goods back, and our boys are on the street. If we quit spending the national defense money at the rate of $42 billion a ^year for as much as 60 days, you wouldn't have any economy in the United States. And you think Khrushchev and Bulganin were kidding when they said that they wanted us to destroy ourselves. And when 402 DEBT CEILING INCREASE Lincoln said, if we are ever destroyed, it will not be from without, it will be from within. We are doing it with men just like Waugh and the rest. They are making a life's work of doing this very thing that Harry Dexter White and Alger Hiss and all that crowd started. Alger Hiss served a term in the penitentiary. We ought to give him a medal if we are going to continue doing everything that he wants done, and we have been. White is dead, but we are still carrying on the very thing that he and his crowd recommended earlier in the Roosevelt administration. So don't blame Mr. Eisenhower, don't blame Mr. Truman, and don't blame Mr. Roosevelt. Let's blame the Congress that votes for it. All the Congress has to do this }^ear is to sit still or this market situation, and in June of this year the control of it returns to the Congress of the United States, where the Constitution, in article I, section A, puts it. Within 6 months after the 1934 Trade Agreements Act expires, the President can request these nations to cancel these multilateral trade agreements made in Geneva b}^ 37 nations that are destroying us by the division of our markets among them. I t will then come right back to the Tariff Commission whose regulations state specifically in section 336 of the Tariff Act of 1930 that they shall set a tariff or duty to make up the difference in the cost of producing an article in this country, and a like article in the chief competing nation. The act provides that the tariff or duty be flexible and kept that w^ay. I don't suppose you have ever read that act. And from, your talk here, you have all got religion. I t is a 24-year-old religion, and I am not for any of it, and I am not about to vote for it, and I don't want you to go away from here thinking I am. And I am sorry, Mr. Chairman, that I do have to go to another matter. The CHAIRMAN. I am glad the Senator has clarified his position. Senator MALONE. I think I have. Senator ANDERSON. Mr. Brundage, I wonder if I could draw your attention to what you were asked on page 187 of the previous hearing. The Chairman, Mr. Byrd, said, "What we want is a direct statement signed by y o u / ' He made it clear what it was to be. He said, " I want to find out what Congress ought to do, and what the States ought to do," and so forth. On page 189, there is a clearer statement by him. He said that, "What is required of Congress" and then "What you have proposed in the way of savings." And I tried to supplement what he said on page 199. I said: I think we ought to find out what savings are going to be suggested, what savings are being made within the power of the Federal Government, and then go on with the things that Congress ought to do. And then, Senator Martin said, "Should there not be separate lists?" And I agreed with him. I said, I thought there ought to be one list that showed what the administration proposes to do, that is to save money, and then one list that shows the burden placed on Congress to save money. W^ould you mind going through this with me to this supplementary list and show what saving the administration is proposing and what savings Congress could bank? DEBT CEILING INCREASE. 403 Mr. BRUNDAGE. The first column of our table which accompanies my statement shows the decreases proposed under existing legislation, and the second column shows the decreases under proposed legislation, which would require the action of Congress. Senator ANDERSON. Do I understand, then, that the administration is proposing savings of $2,971 million? Mr. BRUNDAGE. That is right, without any action required by Congress. Senator ANDERSON. $2,971 million, without any action by Congress? Mr. BRUNDAGE. Required, }^es. Senator ANDERSON. Even this proposed $738 million that Congress itself could do? Mr. BRUNDAGE. That is right. Senator ANDERSON. And then you proposed increases of $4,858 million? Mr. BRUNDAGE. Yes. Senator ANDERSON. SO, Mr. BRUNDAGE. Those the overall is an increase——• practically all require the action of Congress on the appropriations, at least. Senator ANDERSON. NOW, of the savings, I notice $14 million to the National Science Foundation. Is the budget proposed to cut the National Science Foundation $14 million? Mr. BRUNDAGE. For their geophysical year expenditures. The geophysical year runs out at the end of 1958. So we only have 6 months' expenditures for the geophysical year. Senator ANDERSON. And you think that the compilation of the material gathered by the satellites will not be important in the last part of the year? Mr. BRUNDAGE. This is what—this is their own estimates. We also gave them an additional $68 million for their new programs, you see, for the basic research program, and for improving education in the sciences. Senator WILLIAMS. Again $14 million savings is only as compared to expenditures in the same Department last year. Mr. BRUNDAGE. That is right. Senator ANDERSON. NOW, the Veterans' Administration, $272 million, are you trimming the Veterans' Administration $272 million in the coming year? Mr. BRUNDAGE. There are programs under these specific heads that are to be reduced. The direct housing loans, the program expires on June 30, 1958, that is $150 million. Senator ANDERSON. D O you anticipate that Congress will not renew it? Will the administration not ask the Congress to renew it? Mr. BRUNDAGE. We are not asking for a renewal, because, to the extent necessary, it is being taken over by the housing agency. Senator ANDERSON. Does that finally save money for the budget, because it is taken by a different agency? Doesn't a "rose by any other name still smell as sweet"? Mr. BRUNDAGE. We think it ought to be all in one agency. Senator B E N N E T T . May I comment on that. The direct GI loan program is a drain on the Treasury. The F H A program represents a guaranty of private financing. So the effect on the Treasury, if this should happen as they anticipate, should be a reduction of some amount in terms of drain on the Treasury. 404 DEBT CEILING INCREASE Senator ANDERSON. I am only trying to find out if he thinks that Congress is going to stop these direct loans to veterans and for housing. Mr. BRUNDAGE. They don't have to stop them, they terminate with the act, unless you take some positive action to increase the budget, they will terminate. Senator ANDERSON. I will put it in your language. Do you think that Congress will not take some positive action? Mr. BRUNDAGE. I don't see why they should take such action, I think it would be foolish. Senator ANDERSON. D O you think the veterans are getting all the housing they need without it? Mr. BRUNDAGE. I think they are. We have tried to gear our present general housing program to take care of their needs specifically. Senator ANDERSON. With reference to this $1.2 billion that the chairman was talking about a minute ago, are those counterpart funds, or do they only include counterpart funds? Are the $1.2 billion of soft currency all to be classified as counterpart, or only part? Mr. BRUNDAGE, Part is counterpart. Senator ANDERSON. That is not all counterpart funds? T h a t is all that is controlled by the Treasuiy? Will you tell me what the $1.2 billion is? Mr. BRUNDAGE. Those are foreign currencies under the control of the Treasury. Senator ANDERSON. Are they counterpart funds? Mr. BRUNDAGE. I t includes counterpart funds. Senator ANDERSON. H O W much is counterpart funds, a small amount or almost all of it? Mr. BRUNDAGE. I t includes about 10 percent of counterpart funds. I t excludes those that have been retained according to law by the other countries for their own development purposes. Senator ANDERSON. NOW, does the Treasury report to the Congress what happens to these funds? Mr. BRUNDAGE. I think so; yes. They report annually. Senator ANDERSON. Then why wouidn't this be in the budget somewhere? You must get something for it. A congressional committee going abroad uses this money; doesn't it? Mr. BRUNDAGE. We give the details in the budget. As I explained to the chairman, you see, this developed out of transactions that have already required the use of dollars either for Senator ANDERSON. Then when we ship abroad some cotton or some wheat, you get back some of these soft currencies? Mr. BRUNDAGE. That is right. Senator ANDERSON. Under Public Law 480. Mr. BRUNDAGE. NOW, if we were to take up the foreign currencies the immediate question arises, at what figure would you take it up, the official rate or the free market or any other rate, there are all kinds of rates. Senator ANDERSON. We all recognize——• Mr. BRUNDAGE. And then what are you going to do with it? And you would have to charge it off again, so it isn't brought back at any figure. Senator ANDERSON. What report does the Treasury make to the Congress on the disposition of these moneys once you get your hands on them? DEBT CEILING 405 INCREASE Mr. BRUNDAGE. They report annually. And we have a report in the Budget document on page 94 and on page 296, I will be glad to read it in the record, if you like. Senator ANDERSON. Does it show what happened to the soft currency after received? Does it show how you got the soft currency? I am trying to find out what happened to it after you got it. Is that reported to the Congress? Mr. BRUNDAGE. Yes; it is reported to the Congress. Senator ANDERSON. SO that the committee in considering what happens to this $1.2 billion could find what took place with it? Mr. BRUNDAGE. That is right. Senator ANDERSON. I t shows how much is furnished to congressional committees abroad, for example? Mr. BRUNDAGE. That is right. Senator ANDERSON. I t is hard to get that information sometimes. Senator B E N N E T T . In detail, Senator, not in gross. Mr. BRUNDAGE. The totals are given in the Budget document. Senator ANDERSON. IS it used to purchase goods in other countries? Mr. BRUNDAGE. Yes, sir. Senator ANDERSON. And you report how much that Mr. BRUNDAGE. Yes. Senator ANDERSON. Should those expenditures be is? added to the budget if this money disappears? Mr. BRUNDAGE. They have been included—— Senator ANDERSON. I S this dropped out as an accountant would drop out a bad debt—he may recover it sometime—is it dropped out or is it in the budget? Mr. BRUNDAGE. It is explained in the budget, but it isn't included in the budget dollar total figures, because if you buy, as you say, a bale of cotton, and that goes under the cost of the CCC——• Senator ANDERSON. When you sell a bale of cotton • Mr. BRUNDAGE. When you sell it and get a foreign currency, that will be used abroad for some other country; it is not going to be brought back in again. Senator ANDERSON. It is controlled still—-—• Mr. BRUNDAGE. It is controlled still by the Treasury and the Bureau of the Budget; we keep track of it but we don't bring it back as an asset. Senator ANDERSON. Nor do we ever account for its expenditure. Mr. BRUNDAGE. We do account for it. Senator ANDERSON. I don't mean that, in the budget figure. Mr. BRUNDAGE. I t does not come in again; that is right. Senator ANDERSON. Don't you think it ought to? Mr. BRUNDAGE. Well, I discussed that a good deal, and I can see more disadvantage to it than gain, because we would have to bring it back at a Senator ANDERSON. AS long as you dispose of it. But when you have made disposition of it don't you think you ought to find out what we got in exchange for it and therefore put some value in it? If I have in my profit-and-loss statement bad debts, charge off a whole group of bad debts. But will the Bureau of Internal Revenue allow me to ignore what comes to me in recoveries? I put that back in the next year's earnings; don't I? 406 DEBT CEILING INCREASE Mr. BRUNDAGE. If this comes back through the purchase of military equipment or something like that you can identify through United States value, but if it goes to Senator ANDERSON. If you buy back military goods, does that show up as a military expenditure, or does it not show up at all? Mr. BRUNDAGE. Part of it is accounted for as m i t i t a ^ procurement under our ICA program called offshore purchases, and that appeared. But if it comes out of the agriculture stocks into foreign currencies, it does not. Senator BENNETT. Would the Senator yield? I am trying to work on this same problem. If the Department of Defense has an overall budget figure, if it acquires, say, by happy accident, some of the armament that it had expected in its original budget calculation to buy in the United States, if it acquires that in France, does the amount it spends in France—is the original budget figure reduced by the amount it spends in France, or when it accounts for the total original dollar budget figure, does it take into account the French francs that it spent to supplement or substitute what it might have spent in dollars, or is that just added? Mr. BRUNDAGE. T h a t is in addition—for instance, some of the military housing we have to spend dollars for, but some comes out of the counterpart funds, and they don't cost us any additional dollars on top of what we originally pay for what we supply to the foreign country. Senator ANDERSON. The Senator from Utah has helped me get what I was trying to get. As I understand it, in Japan we have a figure for military housing we use plywood available over there, and we used counterpart funds to buy it. Did the military reduce their other budget because they saved money on that? Air. BRUNDAGE. Presumably we would have reduced their requirements for dollars, because they were able to use this counterpart fund. Senator ANDERSON. I am not interested in the "presume." Actually, they did not. Mr. BRUNDAGE. Well, we wouldn't put it in the budget as a cost in dollars, because we were only going to use the counterpart fund, but that would not be charged against them in the budget. Senator ANDERSON. In other words, if they had a budget that called for X billions of dollars, and they were able to save $50 million by getting plywood in Japan, their budget is X plus $50 million, because they went right ahead and spent all the money appropriated by Congress, or could, that is right? Mr. BRUNDAGE. Well, they couldn't spend it for the same thing Senator ANDERSON. Do they not have leeway in the way they7" spend their money? Mr. BRUNDAGE. Yes. Senator ANDERSON. Then they could spend it? Mr. BRUNDAGE. Yes, they use it for something. Senator ANDERSON. Isn't that what I said, that it would be X plus $50 million, isn't that using it for something else? Mr. BRUNDAGE. Well, yes. Senator ANDERSON. Therefore, this money does really involve some increases in budget if it is to be used that way? I am not trying to criticize the expenditures—I am voting for this S. 400 • DEBT CEILING INCREASE 407 Mr. BRUNDAGE. I am just trying to explain it, because it is a little complicated, because it goes through several different ways. Some of these currencies the CCC actually will recover dollars for, they are apportioned. Defense pays for them, and the other agencies pay to the Treasury for the foreign currency. And that amount goes in the budget totals. But if they don't pay for it in dollars, it doesn't. But these other uses are shown in information tables in the budget document. Senator ANDERSON. The fifth page of this tabulation shows a decrease in the Department of Defense of $1,095 million, an increase of $2 billion, with accelerated program, therefore the total budget goes up about $1 billion. Mr. BRUNDAGE. They used in addition to this—we don't know what the figure will be in 1959, but they are using in 1958 an estimated $67 million of foreign currencies without reimbursing CCG for military assistance and $61 million for economic, technical, and other assistance. Senator ANDERSON. I was talking about page 5 of the tabulation, Mr. Brundage. We are on different sheets. Mr. BRUNDAGE. This is on page 94 of the budget. Senator ANDERSON. I t shows on there that the Department of Defense-—-the chairman asked you to show us how much you saved, and then show us where the Congress can save, and we will see where we come out. Mr. BRUNDAGE. That is right. Senator ANDERSON. Now, you show us how the administration saves by cutting down the Department of Defense $1 billion one place and increasing it $2 billion in the other. Mr. BRUNDAGE. For something else? Senator ANDERSON. Yes, for something else, instead of buying conventional aircraft they are going to buy some missile ships and construct facilities for SAC, and proposed pay adjustments—those are all part of the normal business. Mr. BRUNDAGE. I thought it would be responsive to your request to do it by program, so that is why we did it. Senator ANDERSON. SO it would be fair to say that of the $2.9 billion you indicated the administration was going to save—and you put $1 billion of it right there—you increase the expenditures 2 billion and save the $1 billion. Have you tried to figure up somewhere how much the Department is going to save overall? Wouldn't it be fair to say that you aren't going to save, that you are going to increase? Mr. BRUNDAGE. What we were trying to do was to show, as the President said—he felt that we had to spend these additional billions on defense, and he was going to try to save two ways, he was going to try to save on defense itself out of less urgent items, with less priority and he was also going to cut down on our domestic programs, and that is what I tried to show here. Senator ANDERSON. Exactly. Now, the whole increase in defense is only $1 billion. Mr. BRUNDAGE. Net. Senator ANDERSON. And the increase is some $2 billion. So actually we are adding $1 billion in defense and $1 billion elsewhere, so we are not saving it, are we? That is the point I was trying to get to. I wouldn't worry so much about the expense of $1 billion for defense if we were saving $1 billion, but actually we are spending $1 billion more, are we not? Your own figures show that. 408 DEBT CEILING INCREASE Mr. BRUNDAGE. I think we are doing both, I think we are spending $2 billion more, and we are saving $1 billion elsewhere, that is what I am trying to sa} r . Senator ANDERSON. Let me put it this wa}r. Supposing I have a double-heating system in a home that I maintain somewhere, and it burns not only oil, but it burns natural gas. I have them both, in case the gas line breaks. Now, say that my normal gas fuel bill is $50, and I don't spend anything for oil, and the next month I spend $40 for natural gas and $25 for oil, would you say I have saved $10 or have I increased $15? Mr. BRUNDAGE. Well, it depends on how you want to break it down, if you want to save one and increase the other, yes. Senator ANDERSON. What I am up against is that you made a total savings that the administration hopes to put through of $2,971 billion, and you expect to increase expenditures $458 million. So in reality you are $2 billion higher, of which $1 billion is a defense item and $1 billion is a nondefense item. Mr. BRUNDAGE. Well, you have to include the decreases under proposed legislation, you add those together Senator ANDERSON. Those are the savings that Congress can make. There were to be two things, one that the administration could do and one that the Congress could do. Now, the Congress could save you $738 million on the proposed legislation, but the administration proposes to save $2 billion and spend $4 billion. So it doesn't really end up with a saving; does it? Mr. BRUNDAGE. Well, I think it does, yes. Senator ANDERSON. I have saved a lot of money I didn't know about, then. Mr. BRUNDAGE. I think I have saved if I don't go to a show even if I have to Senator ANDERSON. YOU spend $4 for dinner and don't go to a show but you only intended to spend $2 for a show, you have saved $2? Mr. BRUNDAGE. If I had to spend it on a doctor bill I would have saved it on the show, because there are certain things that you have to do because they are paramount and important; I think the other things are of less importance. Senator ANDERSON. I didn't go into the question of what was paramount and important, I merely took your totals at the end on page 7 of this statement, and the total shows under existing legislation how much you propose to save in the administration, it runs $2,971 billion. Then in the third column this shows what you intend to spend in excess and it runs $4.8 billion of whi