$13, 729, 478 73, 244, 560 330, 404, 935 511, 635, 413 868, 798, 933 19, 971, 470

238, 774, 165 707, 091, 470 161, 633, 610 100, 038, 230

2, 890, 660, 385 10, 000, 000

5, 932, 746, 768 Under the existing emergency legislation, the amounts provided for departmental salaries and expenses may be supplemented to whatever extent deemed necessary by the use of field appropriations.

The total receipts under trust accounts for 1943 are estimated at $4,924,000.

DEPARTMENT OF STATE

The estimates of the Department of State for the fiscal year 1943, exclusive of construction projects and trust accounts, amount to $26,159,480, a net increase of $3,229,798 over the comparable appropriations for the fiscal year 1942. This net increase is made up as follows: $1,497,095 for the Office of the Secretary of State; $600,000 for national defense activities; $54,700 for the Foreign Service; and $1,078,003 for international obligations, commissions, bureaus, etc.

The net increase of $1,497,095 in the estimates for the Office of the Secretary of State consists of $1,433,740 for personal services, $13,400 for contingent expenses, $49,100 for printing and binding, $655 for passport agencies, and $200 for collecting and editing official papers of territories of the United States.

The $600,000 net increase in national defense activities is to provide funds for an increased number of specialists and technical assistants in the Foreign Service necessary in connection with emergency problems caused by the war. The net increase of $54,700 for the Foreign Service consists of increases in certain appropriations amounting to $114,200, which amount is offset by decreases in other appropriations amounting to $59,500. The principal items of increase are $66,100 for automatic promotions of Foreign Service officers as authorized by law; $30,000 for promotions of Foreign Service clerks; $9,000 to adjust salaries of certain miscellaneous employees more nearly in line with local wage standards; and $9,100 for the Foreign Service retirement and disability appropriated fund. The principal items of decrease are $38,000 and $13,000 for office and living quarters allowances and representation allowances, respectively. These decreases are made possible largely because several embassies and a large number of consulates in Axis-controlled countries have been closed.

The net increase of $1,078,003 in international obligations, commissions, bureaus, etc., is composed of increases in certain appropriations amounting to $1,165,023, offset by decreases in other appropriations amounting to $87,020. The principal items of increase are $41,800 for the Inter

The expenditures from trust accounts for the fiscal year 1943 are estimated at $2,820,980, an increase of $4,100 over the fiscal year 1942.

TREASURY DEPARTMENT

Executive Order 8929 of November 1, 1941, transferred the Coast Guard from the Treasury Department to the Navy Department and, therefore, the estimates for the Coast Guard have been included in the Navy Department chapter of the Budget.

The Division of Printing has been abolished and the bulk of its personnel and duties has been transferred to the Procurement Division, but five employees were transferred to the Office of the Chief Clerk, four to the Bureau of Internal Revenue and one to the Coast Guard. The entire appropriation for printing and binding is being administered by the Procurement Division, and the stationery appropriation has been divided among those bureaus and offices whose appropriations are available for other than personal services. The small balance of the stationery appropriation remaining for the benefit of those bureaus whose appropriations are available for personal services only is being administered by the Procurement Division.

Exclusive of trust funds, the Budget estimates for the Treasury Department, fiscal year 1943, provide for direct appropriations totaling $2,499,697,801, an increase of $390,222,836 over the comparable figure for 1942. The reappropriation of an unobligated balance is contemplated for 1943 in the amount of $8,829,376 which is a decrease of $29,730,000 from 1942. The total of the direct appropriations plus reappropriations available for 1943 represents, therefore, an increase of $360,492,836 over the amount available for the fiscal year 1942. The principal items of increase and decrease are accounted for as follows:

Annual appropriations.-The total of the 1943 annual appropriation estimates for the Treasury Department is $216,675,094, or $41,405,032 less than the comparable total for the fiscal year 1942. This net decrease results chiefly from nonrecurring items of $36,400,000 for payments to Federal Land Banks and the Federal Farm

Mortgage Corporation on account of reduction in the interest rate on mortgages, $6,005,000 for administrative costs in the Treasury Department growing out of the work relief and relief program, and $800,000 for reimbursement to carriers of deficits incurred while the railroads were under the control of the Government during the first World War. Offsetting these decreases are a number of relatively small items of increase, including a total of $1,723,991 for within-grade promotions.

The principal items of increase and decrease by bureaus and offices are as follows:

The estimates of the Office of the Secretary of the Treasury for 1943 total $5,283,805, a net decrease of $35,959,270. The decreases consist of $36,400,000 in the amounts for payment to the Federal Land Banks and the Federal Farm Mortgage Corporation, $800,000 for reimbursement to carriers of deficits during Federal control, and $26,640 in the appropriation for the immediate office of the Secretary. These decreases are offset in part by an increase of $1,265,075, including $18,150 for within-grade promotions, in the appropriation for Foreign Exchange Control, and an increase of $2,295 for within-grade promotions in the Office of the Secretary.

A net decrease of $37,120 is recommended for the Division of Research and Statistics. The discontinuance of certain statistics on foreign purchases makes possible a nonrecurring item of $50,000, which is offset in part by the allowance of $10,000 on account of additional work and $4,925 for within-grade promotions.

Appropriation estimates for the Office of the Chief Clerk amount to $505,410, which is a net decrease from the 1942 total of $49,210. This net decrease results from a decrease in the appropriation for contingent expenses of $66,430 and an increase in the chief clerk's salary appropriation of $17,220. No new positions have been allowed in the Office of the Chief Clerk, but the increase for personnel results from the transfer of four telephone operators to the Bureau of Internal Revenue, the transfer of a total of 16 employees from the Bureau of the Public Debt and the Division of Printing to the Office of the Chief Clerk, and the allowance of $3,100 for within-grade promotions. The reduction of $66,430 for contingent expenses consists of nonrecurring items totaling $41,012 and a further net decrease of $25,418 which will reduce the amount that would be expended otherwise for the purchase of equipment.

The estimates for the Bureau of Accounts total $3,258,016, or a net reduction of $2,704,887 below the 1942 amount. Appropriations totaling $3,125,000 for administrative expenses, emergency relief, Bureau of Accounts, and Division of Disbursement are nonrecurring in 1943, and other decreases proposed by the Department are $5,000, under recoinage of minor coins, $75,000 under recoinage of silver coins, and $16,000 in the Division of Disbursement by reason of the transfer of the Coast Guard to the Navy.

Partially offsetting these decreases are increases of: $250,000 to make effective Executive Order No. 8512 which prescribes requirements with respect to budgetary administration and fiscal reporting, and Reorganization Plan III which established the Fiscal Service in the Treasury Department; $13,430 for contingent expenses, which amount is nonrecurring in the appropriation "Contingent Expenses, Treasury Department"; $2,080 for additional clerks; $2,600 for reallocations; $900 for stationery; $100,000 for the transportation of mutilated United States paper currency to Washington for redemption; $15,000 for refund of moneys erroneously received

and covered into the Treasury; and $31,303 for withingrade promotions.

The total of the annual appropriation estimates for the Bureau of the Public Debt is $3,953,063, or an increase of $430,248 over 1942. An increase of $227,550 is recommended for additional personnel in the Bureau of the Public Debt to handle the anticipated increased volume of work in connection with the redemption of currency and defense savings bonds; an increase of $181,638 is required for the purchase of distinctive paper for United States currency; and $21,060 for within-grade promotions. The annual estimates for the Office of the Treasurer of the United States for 1943 amount to $1,838,150, which is a decrease of $206,685. This net decrease results from nonrecurring items of $350,000 for administrative expenses, emergency relief, and $11,700 on account of work which will be financed with transferred funds in 1943 instead of from regular appropriations. These decreases are offset in part by increases of $135,000 for additional personnel required for the clearance of checks, the handling of collections and the redemption of defense savings bonds, $2,040 for reallocations, and $17,140 for withingrade promotions.

The total annual estimates of the Bureau of Internal Revenue for 1943 are $141,413,940, which represents a net decrease of $956,931. Decreases of $3,000,000 for refunding internal-revenue collections, $600,000 in the salaries and expenses appropriation for refunding processing and related taxes, and $1,350 for payment to Alaska for additional income tax of railroads, total $3,601,350. These decreases are offset in part by increases of $2,040,872 required for the collection of additional taxes imposed by the Revenue Act of 1941, and $603,547 for within-grade promotions. For the fiscal year 1943 no provision is made for the collection of the use tax on motor vehicles and boats.

The estimate for the Bureau of Engraving and Printing for the fiscal year 1943 of $10,327,168 shows an increase of $273,668 over 1942. After making allowance for nonrecurring items totaling $1,007,266, the amount recommended for the Bureau of Engraving and Printing includes increases of $1,269,566 for the production of increased quantities of currency, revenue stamps, bonds, notes, checks, etc., and $11,368 for within-grade promotions.

The appropriation estimates of the Secret Service Division for 1943 total $1,348,663, which is a net decrease of $122,585. The nonrecurring item of $130,000 for administrative expenses, emergency relief, is offset in part by the allowance of $7,415 for within-grade promotions. The estimates for the Bureau of the Mint for 1943 amount to $4,073,470, which is an increase of $550,795. This net increase represents the difference between nonrecurring items totaling $426,986 and increases totaling $977,781. The increases consist of $889,086 to provide for a substantial increase in the coinage program, $70,000 for the purchase of a few necessary items of mint machinery, $1,100 for the Office of the Director, $800 for the production of a medal which was authorized by Congress, and $16,795 for within-grade promotions.

The estimates for the Procurement Division for 1943 amount to $1,316,197, which is a reduction of $2,632,098 below 1942. This net reduction is due to nonrecurring items of $2,400,000 for administrative expenses, emergency relief, $128,052 in the salaries and expenses item, and $127,500 under printing and binding. These decreases are offset in part by increases of $12,524 for additional personnel, $4,000 for stationery supplies, and $6,930 for within-grade promotions.

Permanent Appropriations. The estimates for permanent appropriations for 1943 total $2,283,022,707, which is an increase of $431,627,868. This increase consists of $425,000,000 for interest on the public debt, $1,601,673 for debt retirement, and $5,026,195 for expenses of loans under the Bureau of the Public Debt. The latter amount is required chiefly in connection with the sale of defense savings bonds and for the Defense Savings Staff engaged in promoting the sale of these bonds. Trust Accounts.-The estimates of appropriations for trust accounts for 1943 total $3,044,921,652, an increase of $804,027,064. This increase includes $513,285,983 for payments from the Federal old-age and survivors insurance trust fund, $290,733,481 for the investment and payments from the unemployment trust fund, $5,000 for the payment of unclaimed moneys, and $2,600 to cover the increased cost of services performed by the Bureau of Internal Revenue for the benefit of the Government of Puerto Rico.

WAR DEPARTMENT

Military activities.-For liquidation of obligations accruing under prior contract authorizations and for operating and maintenance expenses of the Military Establishment, on a prewar basis, the Budget for the fiscal year 1943 provides for appropriations totaling $6,378,801,675, exclusive of trust funds. No new contract authorizations are provided, the estimates having been prepared on a cash basis. Conditions having greatly changed since these estimates were prepared they will have to be materially supplemented as the fiscal year 1943 progresses. Departmental activities. The estimates of appropriations for departmental salaries, contingent expenses, and printing and binding total $9,290,072, but provision is made for supplementing the amounts for these purposes by allotments from field appropriations for military activities to meet additional needs.

Civil activities.-There is included a total of $39,095,590 for the civil activities of the War Department (exclusive of the Panama Canal, items under the General Public Works Program, and trust accounts) which is a net decrease of $7,127,920 from the amount appropriated in 1942. This net decrease is the result of an increase of $5,746 for Alaska Communications System necessitated largely to handle increased traffic, and of decreases, due

to reduced requirements, of $6,100,040 for maintenance of river and harbor improvements, and of $1,033,626 for cemeterial expenses.

The amount included for the Panama Canal, $78,314,375, is an increase of $18,350,049 over the amount appropriated in 1942. This deviation consists of increases of $21,894,800 for the construction of additional facilities; $206,216 for the civil government; $21,777 for sanitation; and of a decrease of $3,772,744 in the requirements for maintenance and operation.

Trust accounts.-The amount included for trust accounts, $3,160,346, reflects a net decrease in 1943 of $2,349,230 due principally to a reduction in funds advanced for flood control.

POST OFFICE DEPARTMENT

The Post Office Department estimates are included as an Annexed Budget, since the excess of expenditures over the postal revenues is paid from the general fund of the Treasury, and only the excess is carried to Statement No. 2 of the Budget for 1943 and to the General Budget Summary and supporting schedules.

It is estimated that the postal revenues for the fiscal year 1943 will amount to $907,000,000. The estimates of appropriations included in the Annexed Budget aggregate $906,151,991, which indicates a surplus of $848,009.

The details concerning the estimates for the Post Office Department will be found in the summary tables and explanatory statement under the Annexed Budget.

DISTRICT OF COLUMBIA

The estimates of appropriations for the District of Columbia for the fiscal year 1943, together with prioryear appropriations, are to be found in an Annexed Budget. The net expenditures, to the extent that they affect the general fund of the Treasury, are carried to the General Budget Summary and supporting schedules. The appropriation requirements for 1943, insofar as they constitute a charge upon the United States Treasury, are estimated at $6,000,000, the same amount appropriated for 1942. The details of the requirements of the District of Columbia are to be found in the summary and supporting schedules of the Annexed Budget.