On February 26, 1960, the former Engineering and Valuation Branch, Special Technical Services Division, was replaced by three engineering branches to achieve a better grouping of functions and to expedite closing of national office engineering cases.

In May 1960 a Reports Division was established and given responsibility to develop a Servicewide reports program aimed at improving the quality and reducing the cost of operational reports.

Advisory group. The advisory group established in June 1959 assisted materially in bringing about a better understanding between the Service and the public, tax practitioners, and taxpayers. The 12-member group of top-ranking lawyers, accountants, educators, and business representatives met regularly with Revenue Service officials to provide constructive criticism of Service policies and procedures and to suggest ways in which tax administration can be improved. The members of the group, all of whom were reappointed in June 1960, donate their services to the Treasury Department.

Quality standards and production goals. A policy statement was issued prescribing the manner in which quality standards and production goals are to be applied in planning and scheduling the work of organizational units and in measuring performance by individual employees.

This

Management training.-To provide more systematic training for management a new career development program was initiated. program standardizes management training Servicewide and focuses on training at three levels of the management ladder. Phase I covers employees at the group supervisor or equivalent level; phase II covers employees at the middle management level; and phase III is for employees selected to fill executive positions such as assistant district director and assistant regional commissioner.

Upgrading and consolidation of space. The district directors' offices in Baltimore, Md., Albuquerque, N. Mex., and Burlington, Vt., were moved into new buildings. Other smaller offices moved to new buildings included Lake Charles, Lafayette, and Victoria, La. Still other space improvements included relocating 29 internal revenue offices and providing alterations or additional space for 21 other locations.

Office of International Finance

The Office of International Finance assists the officers of the Department in the formulation and execution of policies and programs in international financial and monetary matters.

By direction of the Secretary, the responsibilities of the Office of International Finance include the Treasury's activities in relation to international financial and monetary problems, covering such matters as the U.S. balance of payments, the convertibility of currencies, exchange rates and restrictions, and the extension of stabilization credits; gold and silver policy; the Bretton Woods Agreements Act, and the operations of the International Monetary Fund, the International Bank for Reconstruction and Development, the International Finance Corporation, the Inter-American Development Bank,

and the proposed International Development Association; foreign lending and assistance; the North Atlantic Treaty Organization; the Anglo-American Financial Agreement; the United States Exchange Stabilization Fund; and the Foreign Assets Control.

The responsibilities of the Office of International Finance also include activities of the Treasury in relation to the National Advisory Council on International Monetary and Financial Problems. The Secretary of the Treasury is Chairman of the Council, which was established in 1945 by the Bretton Woods Agreements Act (22 U.S.C. 286b) in order to coordinate the policies and operations of the United States representatives on the International Monetary Fund, and the International Bank, and of all the agencies of the Government which make or participate in making foreign loans or which engage in foreign financial, exchange, or monetary transactions. The acts authorizing United States membership in the International Finance Corporation, the Inter-American Development Bank, and the International Development Association also provide for the coordination by the National Advisory Council of the United States representatives to these institutions.

The Office also acts for the Treasury on the financial aspects of international treaties, agreements, and organizations in which the United States participates, and it takes part in negotiations with foreign governments with regard to matters included within its responsibilities. It assists the Secretary on international financial aspects of problems arising in connection with his responsibilities. under the Tariff Act.

The Office of International Finance advises Treasury officials and other departments and agencies of the Government concerning exchange rates and other financial problems encountered in operations involving foreign currencies. In particular, it advises the Department of State and the Department of Defense on financial matters related to their normal operations in foreign countries and on the special financial problems arising from defense preparation and military operations. In conjunction with its other activities the Office studies the financial policies of foreign countries, exchange rates, balances of payments, the flow of capital, and other related problems.

The Division of Foreign Assets Control administers certain regulations and orders issued under section 5(b) of the Trading with the Enemy Act. The Foreign Assets Control Regulations block all property in the United States in which any Communist Chinese or North Korean interest exists and prohibit all trade or other financial transactions with those areas or their nationals. The Control carries on licensing activities in connection with transactions otherwise prohibited and takes action to enforce the regulations.

The Control also administers regulations which prohibit persons in the United States from purchasing, selling, or arranging the purchase or sale of strategic commodities outside the United States for ultimate shipment to the Soviet bloc. The latter regulations supplement the export control laws administered by the Department of Commerce.

The principal functions of the Bureau of the Mint include the manufacture of coin, both domestic and foreign; the distribution of domestic coin between the mints, the Federal Reserve Banks and branches, and the Treasurer of the United States in Washington, D.C.; the custody, processing, and movement of gold and silver bullion; the administration of the regulations issued under the Gold Reserve Act of 1934, as amended (31 U.S.C. 440-446), and section 5b of the act of October 6, 1917, as amended (12 U.S.C. 95a), including the issuance and denial of licenses, the purchase of gold, and the sale of gold bullion for industrial use; the administration of silver regulations issued under the acts of July 6, 1939 (31 U.S.C. 316c), and July 31, 1946 (31 U.S.C. 316d); the manufacture of historic and special Government medals; and other technical services.

In addition to the Office of the Director of the Mint in Washington, D.C., six field institutions were in operation during the fiscal year 1960, consisting of the Philadelphia and Denver mints where coins are manufactured; the San Francisco Mint, operating as an assay office and bullion depository; the Fort Knox Gold Bullion Depository; the New York Assay Office; and the West Point Silver Bullion Depository which operates as an adjunct of the New York Assay Office. Coinage

The mints manufactured 2.6 billion domestic coins during the fiscal year 1960, an increase of 63 percent over the previous year's output of 1.6 billion coins. The following table shows production of the five denominations coined during the year.

1 No silver dollars were coined during the year; the last dollar coinage was in September 1935. 2 Includes 1,465,201 sets of proof coins.

* Consists of 1,405 tons of silver, 7,656 tons of copper, 348 tons of nickel, and 340 tons of zinc and tin.

More detailed information concerning the Bureau of the Mint is contained in the separate annual report of the Director of the Mint.

In addition to domestic coinage the Philadelphia Mint manufactured 311.5 million coins for six foreign governments, as follows:

During the fiscal year 1960 the mints issued 2.7 billion domestic coins for circulation, compared with 1.7 billion coins in 1959. The six denominations issued are shown in the following table.

! Includes 1,479,555 sets of proof coins sold by the Philadelphia Mint. A set consists of five coins (1¢, 5€, 104, 25, and 50¢ denominations).

The total stock of domestic coins, comprising the amount held in the mints and other Treasury offices, in Federal Reserve Banks, commercial banks, and in the hands of the public, is compared at the close of the past two fiscal years as follows:

1 Decrease represents the amount of uncurrent (worn) silver dollars withdrawn from circulation and returned to the mints during fiscal 1960.

Gold

The three mints and the New York Assay Office received 11.1 million fine ounces of gold valued at $387.9 million during fiscal 1960. Issues of gold totaled 22.0 million ounces valued at $770.3 million, including 2.5 million ounces valued at $87.0 million sold for domestic industrial, professional, and artistic use. The amount stored in the Fort Knox Depository remained unchanged at 356.7 million ounces valued at $12,483.4 million. Total holdings of the five mint institutions and transactions of the mints and assay office are shown in the following table.

1 Intermint transfers amounted to 20.2 million ounces valued at $706.1 million during fiscal 1960.

Silver

Silver bullion transactions made at the mints, the New York Assay Office, and the West Point Depository, and beginning and end-of-year holdings of the five institutions are summarized in the following

statement.