Sources and application of funds (operations)—Continued 1957 actual 1958 estimate 1959 estimate Gross expenditures (funds applied)-Continued Loan to Secretary of Agriculture for agricultural Eradication of brucellosis in cattle: Transfers Cotton classing and tobacco grading: Transfers International Wheat Agreement costs Cost of commodities and other expense. Soil bank program: Interest expense. Increase in selected working capital. Grain for migratory waterfowl feed. Transfer of long staple cotton from national 1,040,000 1,820, 658, 038 6, 219, 049, 668 27, 550 2,600,000 1, 229, 671, 635 5, 237, 224, 084 Total gross expenditures.......... Receipts from operations (funds provided): Price support program: Loans transferred to accounts receivable. National Wool Act reimbursement. Reimbursement for transfer of bartered ma terials to supplemental stock pile-pro- Other revenue. 23, 148, 059 Storage facilities program: Loans repaid.. Loans transferred to accounts receivable. 11, 339, 077 13, 162, 369 936,350 8,035,000 27,000 1 Excludes nonexpenditure transfer of funds for the soil bank programs of $564,260,963 in 1957 and return of funds of $3,758,533 in 1957 and $19,240,883 in 1958. 2 Sales under the price support program include (1) the value of transfers of strategic and critical materials acquired under barter contracts to the national and the supplemental stockpiles and (2) sales to processors under contracts providing that the Corporation will repurchase the commodities in another form. 1,393, 490 12,059, 756 16,841, 028 17,548, 923 466,926 330, 528 1, 139, 982 183, 945 1 Operation and maintenance costs applicable to owned structures are reflected as carrying charges on the commodities stored. Adjustment to eliminate the market value of agricultural commodities transferred from the price-support program to the commodity export program. Amounts recovered or to be recovered from appropriations for special activities authorized by the Congress are not reflected as losses. NOTE. In addition to obligations other than liabilities reflected in the "Status of certain fund balances,' the Corporation does not reflect in its accounts claims by the Corporation on which adequate proof has not been established and the outstanding guaranty and occupancy agreements for storage space. Statutory obligations include only borrowings from Treasury and obligations to purchase loans held by banks; other obligations, contingent liabilities and commitments do not beome charges against the statutory borrowing authority until they result in borrowings from Treasury or in loans held by banks. 21494-58-pt. 3--37 JUSTIFICATION OF ESTIMATES Mr. WHITTEN. In connection with the Commodity Credit Corporation, restoration of capital impairment, we will have pages 390 to 477 of the justification included at this point. (The justification referred to is as follows:) COMMODITY CREDIT CORPORATION PURPOSE STATEMENT Purpose. The Commodity Credit Corporation engages in buying, selling, lending, and other activities with respect to agricultural commodities, their products, food, feeds, and fibers, for the purpose of stabilizing, supporting, and protecting farm income and prices; assisting in the maintenance of balanced and adequate supplies of such commodities; and facilitating their orderly distribution. The Corporation also makes available materials and facilities required in connection with the production and marketing of such commodities. Origin. The Commodity Credit Corporation was organized October 17, 1933, under the laws of the State of Delaware, as an agency of the United States. From October 17, 1933, to July 1, 1939, the Corporation was managed and operated in close affiliation with the Reconstruction Finance Corporation. On July 1, 1939, it was transferred to the Department of Agriculture by the President's Reorganization Plan I. Under the Commodity Credit Corporation Charter Act of June 29, 1948 (Public Law 806, 80th Cong.), effective July 1, 1948, it was established as an agency and instrumentality of the United States under a permanent Federal charter. The charter was amended by Public Law 85, 81st Congress, approved June 7, 1949. Management.--The Corporation is managed by a board of directors, subject to the general supervision and direction of the Secretary of Agriculture, who is, ex officio, a Director and Chairman of the Board. The Board consists of the Secre tary of Agriculture and six other members appointed by the President and confirmed by the Senate. In addition, the Corporation has a bipartisan advisory board of five members appointed by the President to survey the general policies of the Corporation and advise the Secretary with respect thereto. The Corporation may, with the consent of the agency concerned, utilize facilities of any other agency of the Federal Government. The Corporation, under this authority, makes extensive use of the personnel and facilities of the Commodity Stabilization Service and the agricultural stabilization and conservation State and county committees in carrying out Corporation activities. In its commodity storage operations the Corporation utilizes the services and fleet facilities of the Maritime Administration, and in its barter and stockpiling operations those of the General Services Administration. The Corporation also utilizes to the fullest extent practicable the usual and customary channels, facilities, and arrangements of trade and commerce in the conduct of its business. In its lending activities the Corporation uses local banks, cooperatives, and other private lending agencies. Commercial storage facilities are used to a great extent in the storage of loan collateral and in the storage of stocks acquired by the Corporation. Operations.-Operations in the budget are conducted under five types of programs: (1) Price support, (2) supply and foreign purchase, (3) storage facilities, (4) commodity export, and (5) special activities. 1. Price-support program: Price-support operations are carried out under the Corporation's charter powers (15 U. S. C. 714), in conformity with the Agricultural Act of 1949 (7 U. S. C. 1421), the Agricultural Act of 1954 (7 U. S. C. 1741), which includes the National Wool Act of 1954, the Agricultural Act of 1956 (7 U. S. C. 1380, 1442) and with respect to certain types of tobacco, in conformity with the act of July 28, 1945 (7 U. S. C. 1312 note). Under the Agricultural Act of 1949, price support is mandatory for six basic commodities-corn, cotton, wheat, rice, peanuts, and tobacco-and specific nonbasic commodities; namely, tung nuts, honey, milk, butterfat, and the products of milk and butterfat. Price support for wool and mohair is mandatory under the National Wool Act of 1954 through the marketing year ending March 31, 1959. Price support for other nonbasic agricultural commodities is discretionary. This program may also include operations to remove and dispose of or aid in the removal or disposition of surplus agricultural commodities for the purpose of stabilizing prices at levels not in excess of permissible price support levels. |