From 1934 to 1941 the postal revenues increased 38.5 percent, or from $586,000,000 to $812,800,000, which is an all-time high record for the Post Office Department. For the fiscal year 1942 the revenues are estimated at $860,000,000 which is an increase of approximately 6 percent over 1941. For 1943 the revenues are estimated at $907,000,000 which is approximately 5.5 percent over the estimate of $860,000,000 for 1942. These estimates of postal revenue for the fiscal years 1942 and 1943 are predicated on the continuation of the present uptrend in postal business through the fiscal year 1943.

The expenditures of the Post Office Department, authorized by the appropriations made for such purposes, are met from postal revenues to the extent that such revenues are available and any excess of expenditures over such revenues is paid from the general fund of the Treasury. Expenditures for postal operations since 1934, like the revenues, have also shown a gradual increase. Expenditures for the fiscal year 1934 were $630,000,000 and for the fiscal year 1941, $839,800,000, an increase of 33.17 percent in expenditures compared with an increase of 38.5 percent in revenue for the same period.

A comparison of expenditures for postal operations of $839,800,000 for the fiscal year 1941 with revenues of $812,800,000 for the same period indicates a gross postal

deficit of $27,000,000 chargeable to the general fund of the Treasury. Due to a greater increase in the volume of mail than was anticipated at the time of the preparation of the 1942 Budget, it is now estimated that supplemental appropriations aggregating approximately $30,000,000 will be required for the fiscal year 1942. This sum added to existing appropriations of $844,900,000 indicates that the total appropriations required will amount to $874,900,000 which, compared with estimated revenues of $860,000,000, would indicate appropriations in excess of revenues of $14,900,000. For the fiscal year 1943 the estimates of appropriations aggregate $906,151,991, compared with estimated revenues of $907,000,000. Should these estimates prove correct, the postal budget would be brought into balance for the first time in many years.

The estimates of appropriation for the Post Office Department in Washington for 1943 are $481,401 in excess of the 1942 appropriations. This increase provides for expansion of service in several bureaus of the Department, the establishment of a budget and administrative planning unit, and for automatic promotions under Public Law 200, Seventy-seventh Congress, first session.

The estimates of appropriation for the field service of the Chief Inspector's Office for 1943 are $758,145 in excess of the 1942 appropriations. This increase is necessary

to provide additional inspectors incident to war activities, additional clerical personnel incident to expansion of the force of inspectors, and the transfer of employees, who have for some time been detailed to division headquarters of the inspection service, from the appropriation, "Clerks, first- and second-class post offices," to "Post office inspectors, clerks, division headquarters."

Increase in postal revenues reflects an increase in the volume of mail to be handled and transported, which in turn requires additional expenditures for personnel, transportation and other facilities. The estimates of appropriation for the first assistant's bureau show an increase for 1943 of $14,527,000 over the estimated requirements for 1942, which assumes that supplemental appropriations of $17,250,000 will be needed for 1942. Practically all funds under this bureau are required for salaries of postmasters and post office employees.

For the Second Assistant's bureau, the 1943 estimates of appropriation are $11,500,000 in excess of the estimated requirements for 1942, assuming that additional funds of $12,500,000 will be provided by supplemental appropriations. The bureau of the Second Assistant is charged

with the supervision of the transportation of the mails. The largest single item of increase pertains to railroad transportation of mail. The increase in volume of mail requires additional transportation facilities and personnel to move the mails by railroad, aircraft, steamship, and by the rural-route and star-route systems.

The responsibility of providing stamps and stamped paper is charged to the Third Assistant's bureau. The increase in the estimate of appropriation for 1943 over the 1942 appropriation is $495,000. This increase results from the increase in prices or increase in quantities of stamps, stamped paper, and postal cards required to supply the public demand.

The bureau of the Fourth Assistant is charged with the operation and maintenance of public buildings, the furnishing of equipment and supplies, and the administration. of the Vehicle Service. The 1943 estimates of appropriation are $3,769,750 in excess of the 1942 appropriations. The increase in these estimates over 1942 is predicated on greater demand for, and increased cost of, equipment and supplies.