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sion of credit unions fits in more logically with the general bank supervisory functions of the Federal Deposit Insurance Corporation. The Federal Deposit Insurance Corporation has performed this function successfully since 1942, and the benefits of its experience may be realized by effecting a permanent transfer.

HARRY S. TRUMAN. THE WHITE House, May 16, 1946.

REORGANIZATION PLAN NO. 1 OF 1946

Prepared by the President and transmitted to the Senate and the House of Representatives in Congress assembled, May 16, 7946, pursuant to the provisions of the Reorganization Act of 1945, approved December 20, 1945

PART I. DEPARTMENT OF STATE,

SECTION 101. Functions of the Office of Inter-American Affairs.-There are transferred to the Secretary of State all functions of the Director of the Office of Inter-American Affairs (which Office was established as the Office of Coordinator of Inter-American Affairs by Executive Order No. 8840 of July 30, 1941, and renamed the Office of Inter-American Affairs by Executive Order No. 9532 of March 23, 1945) with respect to the following corporations, namely, the Institute of Inter-American Affairs, the Inter-American Educational Foundation, Inc., the Institute of Inter-American Transportation, the Inter-American Navigation Corporation, and Prencinradio, Inc., together with all rights and interests, authority, and obligations of the said Director and of his predecessors with respect to such corporations, including his authority with respect to holding the capital stock of the said corporations on behalf of the United States of America. All functions of the Office of Inter-American Affairs with respect to the aforesaid corporations are transferred to the Department of State. The functions transferred by this part shall be administered by the Secretary of State or, subject to his direction and control, by such officers and agencies ofthe Department of State as he may designate. The said Office of Inter-American Affairs and all functions thereof and of the Director of the Office of Inter-American Affairs not otherwise disposed of herein are abolished.

SEC. 102. United States High Commissioner to the Philippine Islands.-The office of the United States High Commissioner to the Philippine Islands is abolished.

SEC. 103. Winding up of affairs.-The Secretary of State shall provide for winding up those outstanding affairs of the agencies abolished by this part which are not otherwise disposed of herein.

PART II. DEPARTMENT OF THE TREASURY

SEC. 202. National Prohibition Act functions.—The functions of the Attorney General and of the Department of Justice with respect to (a) the determination of Internal Revenue taxes and penalties (exclusive of the determination of liability guaranteed by permit bonds) arising out of violations of the National Prohibition Act occurring prior to the repeal of the eighteenth amendment to the Constitution, and (b) the compromise, prior to reference to the Attorney General for suit, of liability for such taxes and penalties, are transferred to the Commissioner of Internal Revenue, Department of the Treasury: Provided, That any compromise of such liability shall be effected in accordance with the provisions of section 3761 of the Internal Revenue Code. All files and records of the Department of Justice used primarily in the administration of the functions transferred by this plan are hereby made available to the Commissioner of Internal Revenue for use in the administration of Such functions.

PART III. DEPARTMENT OF AGRICULTURE

SEC. 301. Agricultural research activities.—The functions of the Bureau of Animal Industry; the Bureau of Dairy Industry; the Bureau of Plant Industry, Soils, and Agricultural Engineering; the Bureau of Entomology and Plant Quarantine; the Bureau of Agricultural and Industrial Chemistry; the Bureau of Human Nutrition and Home Economics; the Office of Experiment Stations; the Agricultural Research Center; and the office of Agricultural Research Administrator, created by Executive Order No. 9069 of February 23, 1942 (7 F. R. 1409), are transferred to the Secretary of Agriculture, and shall be administered by

the Secretary of Agriculture or, subject to his direction and control, by such officers and agencies of the Department of Agriculture as he shall designate.

PART IV. OFFICE OF WAR MOBILIZATION AND RECONVERSION

SEC. 401. Contract settlement functions.-All functions of the Director of Contract Settlement and of the Office of Contract Settlement under the Contract Settlement Act of 1944 are transferred to the Director of War Mobilization and Reconversion and the Office of War Mobilization and Reconversion, respectively, and shall be administered by the Director of War Mobilization and Reconversion or, subject to his direction and control, by such officers and agencies of the Office of War Mobilization and Reconversion as he shall designate. There are also transferred to the Office of War Mobilization and Reconversion the Appeal Board established under section 13 (d) of the Contract Settlement Act of 1944 and the Contract Settlement Advisory Board created by section 5 of the said act: Provided, however, That the respective functions of each board shall remain vested therein as at present. The quarterly progress reports required of the Director of Contract Settlement by section 2 (b) of the Contract Settlement Act of 1944 shall be consolidated with the quarterly reports of the Director of War Mobilization and Reconversion required by section 101 (c) (8) of the War Mobilization and Reconversion Act of 1944 effective with the report required thereunder on the 1st day of October 1946. The quarterly progress report of the Director of Contract Settlement required in July 1946 shall be submitted at that time by the Director of War Mobilization and Reconversion as a separate report. The Office of Contract Settlement, including the office of Director of Contract Settlement but excluding the boards transferred under this section, is abolished.

PART V. NATIONAL HOUSING AGENCY

SEC. 501. National Housing Agency. The agencies and functions of the National Housing Agency established under the First War Powers Act, 1941 (55 Stat. 838), by Executive Order No. 9070 of February 24, 1942 (7 F. R. 1529), are consolidated to form a permanent agency of the same name. Such Agency shall have the officers and constitutent units hereinafter provided for, and shall be administered according to the provisions of this plan.

SEA. 502. National Housing Administrator.-The head of the National Housing Agency shall be known as the National Housing Administrator (referred to herein as the Administrator). He shall be appointed by the President, by and with the advice and consent of the Senate, and receive a salary at the rate of $10,000 per annum unless the Congress shall otherwise provide.

SEC. 503. Deputy National Housing Administrator.-The Administrator may appoint a Deputy National Housing Administrator under the classified civil service. Such deputy shall receive a salary at the rate of $10,000 per annum, shall act for the Administrator in his absence or disability, or in the event of a vacancy in the office of Administrator, unless the President shall otherwise direct, and shall perform such other duties as the Administrator may designate.

SEC. 504. Constituent units.-(a) The constituent units of the National Housing Agency shall be as follows:

(1) The Federal Home Loan Bank Administration with a Federal Home Loan Bank Commissioner who shall be the head thereof.

(2) The Federal Housing Administration with a Federal Housing Commissioner who shall be the head thereof.

(3) The Federal Public Housing Authority, which shall succeed to the corporate status of the United States Housing Authority, with a Federal Public Housing Commissioner who shall be the head thereof. (b) Each such Commissioner shall be appointed by the President, by and with the advice and consent of the Senate, and receive a salary at the rate of $10,000 per annum.

SEC. 505. Functions of constituent units.-(a) The following functions shall be administered by the Federal Home Loan Bank Administration:

(1) The functions of the Federal Home Loan Bank Board and its members under the Federal Home Loan Bank Act, as amended.

(2) The functions of the Board of Trustees of the Federal Savings and Loan Insurance Corporation under title IV of the National Housing Act, as amended.

(3) The functions of the Board of Directors of the Home Owners' Loan Corporation under the Home Owners' Loan Act of 1933, as amended.

(b) The functions of the Federal Housing Administrator under the National Housing Act, as amended, shall be administered by the Federal Housing Administration.

(c) The following functions shall be administered by the Federal Public Housing Authority:

(1) The functions of the Administrator of the United States Housing Authority under the United States Housing Act of 1937, as amended, and under title II of the act of June 28, 1940 (54 Stat. 676), as amended.

(2) The functions created or authorized by titles I and III, section 401, and title V of the act of October 14, 1940 (54 Stat. 1125), as amended.

(3) The functions of the War and Navy Departments with respect to defense or war housing (except that located on military or naval reservations, posts, or bases) under the act of September 9, 1940 (54 Stat. 872), as amended.

(4) The functions of all agencies designated to provide temporary shelter in defense areas under the acts of March 1, 1941, May 24, 1941, and December 17, 1941 (55 Stat. 14, 55 Stat. 197, and 55 Stat. 810, respectively), insofar as such functions relate to such temporary shelter.

(5) The functions of the Federal Loan Administrator with respect to the Defense Homes Corporation (which Corporation shall continue to be an agency of the United States until its liquidation is completed and shall be administered by the Federal Public Housing Commissioner, who shall receive and hold the capital stock of said Corporation on behalf of the United States of America).

(6) The functions of the Farm Security Administration with respect to housing projects which said Administration has determined are for families

not deriving their principal income from operating or working on a farm. (d) The functions to be administered by the constituent units under this section shall be deemed to be vested in the respective Commissioners, and in the administration thereof the Commissioners shall be subject to the authority of the Administrator.

(e) The provisions of this section shall be subject in all respects to the provisions of section 506 of this plan.

SEC. 506. Functions of the National Housing Administrator.-The Administrator shall have the following functions, which shall be performed by him or, subject to his authority under the provisions of this plan, through such officers and employees of the National Housing Agency as he shall designate:

(a) The functions of the Secretary of Agriculture, Secretary of War, Secretary of the Navy, Federal Loan Administrator, and the Federal Works Administrator relating to the functions vested in the National Housing Agency or any constituent unit thereof under this plan.

(b) The conduct of any research or statistical activities relating to any function of the National Housing Agency or any of its constituent units.

(c) The determination of general policy and the making of findings with respect to the need for housing and termination of such need under titles I and III, section 401, and title V of the act of October 14, 1940 (54 Stat. 1125), as amended, the act of September 9, 1940 (54 Stat. 872), as amended (except as to housing located on military or naval reservations, posts, or bases), and the acts of March 1, 1941, May 24, 1941, and December 17, 1941 (55 Stat. 14, 55 Stat. 197, and 55 Stat. 810, respectively).

(d) The responsibility of assuring consistent execution of policy as outlined by law with respect to the program of the National Housing Agency and the constituent units thereof and of devising and applying methods and practices conducive to a unified housing program.

(e) General superintendence, direction, coordination, and control of the affairs of the National Housing Agency and its constituent units; the promulgation of such rules and regulations as the Administrator deems necessary to carry out his responsibilities under the provisions of this plan; and the review and approval, to such extent as he deems necessary, of the rules and regulations made by the Commissioners.

(f) The duty of transmitting to the Congress the annual reports of operations and activities prepared by the Commissioners as required by the second sentence of section 20 of the Federal Home Loan Bank Act, as amended, sections 5, 402 (f), and 406 (e) of the National Housing Act, as amended, and section 7 (b) of the United States Housing Act of 1937, as amended, together with such report of the programs and activities of the National Housing Agency as may be appropriate.

SEC. 507. Agencies abolished.-(a) The following agencies are abolished:

(1) The office of Federal Housing Administrator.

(2) The Federal Home Loan Bank Board, and the offices of the members thereof.

(3) The Board of Trustees of the Federal Savings and Loan Insurance Corporation, and the offices of the members thereof.

(4) The Board of Directors of the Home Owners' Loan Corporation, and the offices of the members thereof.

(5) The office of Administrator of the United States Housing Authority. (b) The United States Housing Corporation created pursuant to acts of May 16, 1918 (10 Stat. 550), and June 4, 1918 (40 Stat. 595), shall be dissolved and abolished

(c) The Federal Home Loan Bank Commissioner shall, subject to the authority of the Administrator as defined in this plan, wind up the outstanding affairs of the United States Housing Corporation.

SEC. 508. Interim appointments.Pending the initial appointment hereunder of any officer provided for in this part, the functions of such officer shall be temporarily performed by such officer of the existing National Housing Agency as may be designated by the President.

PART VI. FEDERAL DEPOSIT INSURANCE CORPORATION

SECTION 601. Credit union functions. The function of the Farm Credit Administration and the Governor thereof under the Federal Credit Union Act, as amended, together with the functions of the Secretary of Agriculture with respect thereto, are transferred to the Federal Deposit Insurance Corporation.

PART VII. RECORDS, PROPERTY, PERSONNEL, AND FUNDS

SECTION 701. Transfer of records, property, personnel, and funds.-Except as otherwise provided in sections 702 and 703 of this plan, there are transferred to the respective agencies in which functions are vested pursuant to the provisions of this plan, to be used, employed, and expended in connection with such functions, respectively, or in connection with winding up the outstanding affairs of agencies abolished by the plan, (1) the records and property now being used or held in connection with such functions, (2) the personnel employed in connection with such functions, and (3) the unexpended balances of appropriations, allocations, or other funds available or to be made available for use in connection with such functions. In the case of the National Housing Agency established by part V of this plan, the transfers made under this section shall be made to the office of the Administrator or to the appropriate constituent unit of the Agency, as the case may be.

SEC. 702. Personnel transferred from Office of Inter-American Affairs.—The personnel transferred under section 701 from the Office of Inter-American Affairs to the Department of State shall be limited to such of the personnel employed under the said Office as the Secretary of State shall determine to be required by the Department of State by reason of the reorganizations provided for in part I of this plan.

Sec. 703. Disposition of certain affairs of the High Commissioner.—Disposition shall be made as determined by the Director of the Bureau of the Budget of the records, property, personnel, and unexpended balances of appropriations, allocations, or other funds (available or to be made available) of the United States High Commissioner to the Philippine Islands with a view toward (1) the use thereof by the Department of State for the purpose of winding up the affairs of the office of the United States High Commissioner to the Philippine Islands, (2) the use thereof by the official appointed by the President under section 402 of the Philippine Rehabilitation Act of 1946 in performing the functions vested in the High Commissioner by section 401 of that act, and (3) such other use and disposition thereof as may be in consonance with the provisions of the Reorganization Act of 1945 and other applicable law. · SEC. 704. Disposition of excess personnel.-Any of the personnel transferred under this plan which the transferee agency shall find to be in excess of the per: sonnel necessary for the administration of the functions transferred to such agency by such plan shall be retransferred under existing law to other positions in the Government or separated from the service.

SEÇ. 705. Dispositions by Director of the Bureau of the Budget.-Such further measures and dispositions as the Director of the Bureau of the Budget shall determine to be necessary in order to effectuate the provisions of this part or in order to wind up the outstanding affairs relating to agencies or functions abolished by this plan shall be carried out in such manner as the Director may direct and by such agencies as he may designate.

[H. Doc. No. 595, 79th Cong., 2d sess.) MESSAGE FROM THE PRESIDENT OF THE UNITED STATES, TRANSMITTING REORGANIZATION PLAN NO. 2, PREPARED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 3 OF THE REORGANIZATION ACT OF 1945

To the Congress of the United States:

The fundamental strength of a nation lies within its people. Military and industrial power are evidences, not the real source of strength. Over the years the prosperity of America and its place in the world will depend on the health, the education, the ingenuity, and the integrity of its people and on their ability to work together and with other nations.

The most basic and at the same time the most difficult task of any country is the conservation and development of its human resources. Under our system of government this is a joint responsibility of the Federal, State, and local governments, but in it the Federal Government has a large and vital role to play. Through its research, advice, stimulation, and financial aid, it contributes greatly to progress and to the equalization of standards in the fields of education, health, and welfare; and in the field of social insurance it also directly administers a major segment of the program.

To meet its full responsibilities in these fields, the Federal Government requires efficient machinery for the administration of its social programs. Until 1939 the agencies in charge of these activities were scattered in many parts of the Government. In that year President Roosevelt took the first great step toward effective organization in this area when he submitted Reorganization Plan I, establishing the Federal Security Agency “to promote social and economic security, educational opportunity, and the health of the citizens of the Nation."

The time has now come for further steps to strengthen the machinery of the Federal Government for leadership and service in dealing with the social problems of the country. Several programs closely bound up with the objectives of the Federal Security Agency are still scattered in other parts of the Government. As the next step, I consider it essential to transfer these programs to the Federal Security Agency and to strengthen its internal organization and management.

Broadly stated, the basic purpose of the Federal Security Agency is the conservation and development of the human resources of the Nation. Within that broad objective come the following principal functions: Child care and development, education, health, social insurance, welfare (in the sense of care of the needy and the defective), and recreation (apart from the operation of parks in the public domain).

These functions constitute a natural family of closely related services, interwoven at many points and in many ways. For example, the development of daycare centers for children has involved joint planning and service by specialists of the Children's Bureau, the Office of Education, the Public Health Service, and several other agencies. The schools are both a major consumer of public-health services and a leading vehicle for health education and for disseminating the results of research carried on by the Public Health Service. The promotion of social security involves a whole battery of activities, especially social insurance, . public assistance, health, and child welfare.

In order to proceed as promptly as possible with the development of the Federal Security Agency to meet the postwar responsibilities of the Government within its field of activity, I am transmitting herewith Reorganization Plan No. 2, which I have prepared in accordance with the provisions of section 3 of the Reorganization Act of 1945 (Public Law 263, 79th Cong., 1st sess.), approved December 20, 1945; and I declare that, with respect to each reorganization made

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