။ EXPLANATION OF ANNEXED BUDGETS Part IV contains detailed schedules and explanatory | statements on seven self-supporting Government agencies and programs which did not submit such schedules for recent budget documents. Like the budgets for the legislative branch and the judiciary, the annexed budgets have not been reviewed by the President but are included in the amounts submitted by the agencies (except for two cases, which are noted, where Bureau of the Budget estimates are used because no agency estimates were submitted). Three agencies (Banks for Cooperatives, Federal Intermediate Credit Banks, and the Federal Deposit Insurance Corporation) have been included in the Governmentsponsored enterprise group in the computation of consolidated cash totals for some years, and, starting with last year's budget the net totals for each have been displayed. However, such data was reported only for certain debt and investment transactions, rather than for all of their ac 1144 tivities, and the information was obtained informally. The inclusion of more complete annexed budgets this year does not change their handling in the totals. The other four agencies and programs (Milk Marketing Administration, Comptroller of the Currency, Exchange Stabilization Fund, and the Board of Governors of the Federal Reserve System) are also not included in the administrative budget or covered specifically in the trust fund totals. They are in part included in the deposit fund group, and in part are outside all traditional figures on Federal finances. The material in this part is presented in the general format of similar material in part I, with the principal exception that these schedules show receipts in place of showing appropriations. No appropriation language appears in part IV because action by the Congress is not required. ANNEXED BUDGETS DEPARTMENT OF AGRICULTURE AGRICULTURAL MARKETING SERVICE Program by activities: 1. Administration... 2. Marketing service. Total obligations. Financing: 1963 actual 1964 1965 estimate estimate fat differentials and with examination of handlers' records to verify their reports and payments to producers. The expenses of the local offices are met from an administrative fund and a marketing service fund which are prescribed in each order. The administrative funds are derived from prorated handler assessments. The rate is determined annually on the basis of the budget submitted by the market administrator and approved by Agricultural Marketing Service. The marketing service fund provides for the expense of 10,372 10,804 11,100 providing market information to producers who are not members of a qualified cooperative. It also provides for the verification of weight sampling and testing of milk from these producers. The cost of these services is borne by such producers. 2,062 2,144 2,252 12,434 12,948 13,352 10,940 2,230 182 Milk sold by regulated handlers supplied about 97 million persons-two-thirds of the total nonfarm population-during calendar year 1962. The following table gives an indication of the growing role of Federal orders on the marketing of milk over the past few years. 13,352 Unobligated balance brought forward. 6,944 -6,987 6,987 -6,993 6,993 -6,993 Calendar year Market administrators are responsible for carrying out locally the terms of specific marketing orders. Their operating expenses, financed by assessments on regulated Marketing service fund: handlers, are reflected in these schedules. These funds are collected locally, deposited in banks and disbursed directly by the market administrator. Each milk order is administered locally by a market 1963 1964 actual estimate 1965 estimate 10,232 10,641 10,940 10,372 10,804 11,100 Net operating loss, administrative fund.. -140 -163 -160 Revenue.. Net operating income or loss, marketing administrator who is appointed by the Secretary. His Nonoperating income: Interest revenue. The activities conducted in the local office are concerned primarily with monthly computations and public announcement of class and uniform blend prices, associated butter 7,059 1964 1965 estimate estimate 1,113 1,098 37 1 Excludes New York-New Jersey order employment-operated under Federal and State orders. The Office of the Comptroller of the Currency was created by act of Congress approved February 25, 1863 (12 Stat. 665), as an integral part of the national banking system. The Office finances its operations primarily by assessments from national banks. The most important functions of the Comptroller of the 37 Currency relate to the organization, examination, and liquidation of national banks. His approval is required by law in connection with the organization of new national banks, the conversion of State-chartered banks into national banks, and consolidations or mergers of national banks with national banks or of State banks with national banks where the continuing institution is a national bank. The establishment of branches by national banks also requires approval by the Comptroller. 1963 1964 estimate estimate The Office exercises general supervision over the operations of national banks. Each national bank is required to publish and file reports of condition not less than four times a year. National bank examiners examine each bank at least three times each 2 years for the purpose of determining the financial condition of national banks, the soundness of their operations, and their compliance with the requirements of the National Bank Act and other applicable statutes. Revenue, Expense, and Retained Earnings (in thousands of dollars) Expense 13,905 16,348 17,444 14,513 Trust examinations. 885 Merger and consolidation fees. 1,087 15,519 1,196 Branch and removal investigations. 50 156 Reports sold 167 179 Other.. 470 Issue and redemption of Federal Reserve cur Reimbursement for issue and redemption 145 rency: Revenue.. 238 262 Investment income.... 319 167 24 Printing and reproduction... 257 25 Other services.. 184 85 31 Equipment... 100 Undistributed (redemption of Federal currency) 554 17,763 1,762 38 1,784 16 For the purpose of stabilizing the exchange value of the dollar, the Secretary of the Treasury is authorized to enter into stabilization agreements, and to deal in gold and foreign exchange and other instruments of credit and securities. An exchange stabilization fund, with a capital of $200 million (derived from the increment resulting from the reduction in the weight of the gold dollar which took place in 1934) is authorized by law for this purpose (31 U.S.C. 822a). All earnings and interest accruing are paid into this fund and are available for the purposes thereof, including expenses. The estimates shown for 1964 and 1965 for operating expenditures have been prepared by the Bureau of the $7,500 Budget. Because of the special nature of the Fund's activities, it is not feasible to make estimates for the other items. 1148 The Federal Reserve System operates under the provisions of the act of December 23, 1913, known as the Federal Reserve Act (38 Stat. 251), as amended. Program. To carry out its responsibilities under the act, the Board determines general monetary, credit, and operating policies for the System as a whole and formu lates the rules and regulations necessary to carry out the purposes of the Federal Reserve Act. The Board's principal duties consist of exerting an influence over credit conditions and supervising the Federal Reserve Banks and member banks. Financing.-Under the provisions of section 10 of the Federal Reserve Act, the Board of Governors levies upon the Federal Reserve banks, in proportion to their capita |