Mr. FERNANDEZ. Mr. Cunningham, before you leave, I want to make it clear in the record that we have no objection to your having an agent in New Mexico. We want one up there. I was just pointing out that we do not hear so much lately of marijuana arrests up there as we did a few years ago. But that may not be because of an improvement in the situation. I do not know. Mr. CUNNINGHAM. I do know, Congressman, that there are some movements over the border down there, but it is opium and heroin. OFFICE OF THE TREASURER OF THE UNITED STATES WITNESSES MRS. GEORGIA NEESE CLARK, TREASURER M. E. SLINDEE, DEPUTY TREASURER W. L. FUNK, BUDGET OFFICER Mr. GARY. Mrs. Clark, our committee is very happy to welcome you on your first appearance before our committee. We had a very high regard for your predecessor. He was one of the great economizers of the administration, we thought. He held his expenditures down very closely, and he always showed very efficient operations. We feel quite certain that the same economy and efficiency will be maintained under your administration. We will be very glad to hear from you at this time, if you have a general statement. Mrs. CLARK. Yes, sir. Thank you very much. GENERAL STATEMENT Mr. Chairman, it is indeed an honor and a privilege to appear before you gentlemen as Treasurer of the United States for the purpose of presenting, for your consideration, our anticipated budgetary requirements for the fiscal year 1951. In accordance with your remarks, I have been reading over the record of past hearings before your committee of the late Hon. W. A. Julian, former Treasurer, and I was deeply impressed with the high esteem and deep respect which you gentlemen accorded him and the accomplishments of his office. You may be assured that the operations of the Treasurer's office will continue to be conducted in such a manner as to justify the retention of your high regard therefor. I feel that my own banking experience enables me to more readily appreciate the marvelous efficiency and economy accomplished by the Treasurer's office in serving as the banking facility for the largest activity of its kind in the world. From a banker's viewpoint, it is incredible that an organization of approximately 1,500 employees with administrative expenses aggregating less than 54 million dollars could possibly perform services annually required of the Treasurer's office. This Bureau acts as a service organization for the entire Federal establishment, and has no administrative control over the volume of the work which it must perform. Moreover, it is important to note that the larger portion of the operations must be performed on a current day-to-day basis. SAVINGS EFFECTED The Treasurer's office has, through constant study and improvement of its operations and procedures, made outstanding progress in effecting savings to the taxpayer and in promoting better working relations with other Government entities and the financial institutions throughout the United States. The budget submission for 1951 provides for 8 percent less personnel than were employed to render comparable services in 1940, while the work trend has been definitely upward. Check clearances show an increase of 95 percent, collection items 46 percent, and the volume of currency redeemed has increased 358 percent. It will be noted from our budget schedule that a savings of $197,300 is now indicated in the funds made available for 1950. This represents a net savings after absorbing the entire cost of the pay increase effective under the Classification Act of 1949. This savings can be attributed principally to a revision in work load based upon current estimates, and a reduction in unit costs below those used in preparing the 1950 estimates occasioned by increased production and improved operations. These savings have been projected into the appropriation base for determining 1951 requirements. In addition, the budget estimate for 1951 takes into consideration a reduction of $80,000 representing estimated savings through the adoption, during the current fiscal year, of a new procedure which provides for the discontinuance Comparison of estimate of appropriation for fiscal year 1951 with appropriation base for 1951 Mr. GARY. Now, it appears that in 1950 the Office of the Treasurer requested $5,500,000. It was allowed $5,450,000. There was a supplemental request of $97,500, which was allowed. So that the total appropriation for 1950 was $5,547,500, whereas your request for 1951 is $5,245,000, which is a decrease of $302,500. As previously stated, this committee is very happy to see any requests for decreases, regardless of what may have prompted them. It is seldom that anyone asks for less than the amount previously appropriated. Mr. FERNANDEZ. It is actually a decrease of $302,500 plus $8,500, as I understand the figures. Mr. GARY. Yes. So that it would be approximately $311,000, because of a transfer. WORK LOAD I suggest that at this point, to show the work load, we insert pages 40 and 41 of the committee print, headed, "Check work load by disbursing agency." (The material referred to follows:) PROGRAM AND PERFORMANCE The Office of the Treasurer of the United States is responsible for (a) the receipt, custody, and payment of public moneys; (b) the issue, transfer, and retirement of currency and coin; (c) the redemption of Government securities; (d) the maintenance of essential fiscal accounts; and (e) the preparation of related financial statements and reports. 1. Processing checks, deposits, and claims.—The major operations include the maintenance of checking accounts of Government disbursing officers, including the examination and clearance of all checks drawn on the Treasurer of the United States payable in Washington, accountability for all checks drawn on the Treasurer payable through the Federal Reserve banks as agents and the processing of claims arising in connection with the nonreceipt, loss, or fraudulent negotiation of Government checks. The decrease in the 1951 program is attributable primarily to the special payment of national service life insurance dividend checks which is expected to be completed in 1950. Budgetary needs are Analysis of appropriation base for fiscal year 1951 Regular appropriation, 1950 act_. Supplemental appropriation for 1950--- $508, 924 1, 322 82, 585 352 -596, 200 Additions: Comparative transfer from "Miscellaneous expenses Appropriation base for 1951__. Estimate of appropriation for fiscal year 1951___. Net increase from base for 1951---‒‒‒ 1 Does not include anticipated deficiency for 1950 to cover cost of authorized pay increases. 285, 200 Comparison of estimate of appropriation for fiscal year 1951 with appropriation base for 1951 Mr. GARY. Now, it appears that in 1950 the Office of the Treasurer requested $5,500,000. It was allowed $5,450,000. There was a supplemental request of $97,500, which was allowed. So that the total appropriation for 1950 was $5,547,500, whereas your request for 1951 is $5,245,000, which is a decrease of $302,500. As previously stated, this committee is very happy to see any requests for decreases, regardless of what may have prompted them. It is seldom that anyone asks for less than the amount previously appropriated. Mr. FERNANDEZ. It is actually a decrease of $302,500 plus $8,500, as I understand the figures. Mr. GARY. Yes. So that it would be approximately $311,000, because of a transfer. WORK LOAD I suggest that at this point, to show the work load, we insert pages 40 and 41 of the committee print, headed, "Check work load by disbursing agency.' (The material referred to follows:) PROGRAM AND PERFORMANCE The Office of the Treasurer of the United States is responsible for (a) the receipt, custody, and payment of public moneys; (b) the issue, transfer, and retirement of currency and coin; (c) the redemption of Government securities; (d) the maintenance of essential fiscal accounts; and (e) the preparation of related financial statements and reports. 1. Processing checks, deposits, and claims.-The major operations include the maintenance of checking accounts of Government disbursing officers, including the examination and clearance of all checks drawn on the Treasurer of the United States payable in Washington, accountability for all checks drawn on the Treasurer payable through the Federal Reserve banks as agents and the processing of claims arising in connection with the nonreceipt, loss, or fraudulent negotiation of Government checks. The decrease in the 1951 program is attributable primarily to the special payment of national service life insurance dividend checks which is expected to be completed in 1950. Budgetary needs are |