Senator McKELLAR. The amount is $4,795,000?

Mr. SCHOENEMAN. Four million seven hundred and ninty-five

thousand dollars; yes, sir.

Senator CORDON. Have you finished?

Mr. SCHOENEMAN. Yes, sir.

Senator CORDON. Have you anything else?

Mr. SCHOENEMAN. I have not, sir.

COMPARISON OF CURRENT AND PRIOR YEAR COLLECTIONS

Senator MCKELLAR. I would like to know how much your collections increased this year over last?

Mr. SCHOENEMAN. You mean the first few months of the present fiscal year as compared with the same period?

Senator MCKELLAR. No. Take the last fiscal year. Do you have that there?

Mr. SCHOENEMAN. Yes, sir; we have it here.

Mr. ATKESON. Mr. Chairman, the total internal revenue collections for the fiscal year 1946 was $40,558,913,040 (exclusive of amount collected by Post Office Department for vehicles tax). The total for the fiscal year 1947 was $39,108,385,741.

The other part of the question had to do with the remaining part of 1948. Is that correct?

Senator McKELLAR. Yes. How does it compare with the same months in the last year?

Mr. ATKESON. This year, through February 29, that is the first 8 months of this fiscal year, we collected $28,277,877,000 as compared with the same period last fiscal year of $25,691,801,000.

Senator MCKELLAR. That is what I want. Thank you.

Senator CORDON. I would like to submit for the record, without objection, the table appearing at the bottom of page 12 and the top of page 13 of the House hearings, being a table showing collections, expenditures, population, tax per capita, cost of collecting, and number of employees, fiscal years 1900-1949.

(The table referred to follows:)

Table showing collections, expenditures, population, tax per capita, cost of collecting, and number of employees, fiscal years 1900-49

1 Exclusive of cost of prohibition and narcotic enforcement. 2 Exclusive of prohibition and narcotic personnel. This personnel for the fiscal years concerned is as follows:

NOTE.-Prohibition and narcotic enforcement placed under separate bureau, effective Apr. 1, 1927 (Public Act No. 751, 69th Cong.).

3 Excludes amount transferred to Post Office Department to cover cost of selling vehicle tax stamps. 4 Excludes amount collected by Post Office Department for vehicles tax. Estimated.

Senator CORDON. If that finishes the showing, we thank you very much.

Mr. SCHOENEMAN. Thank you, sir.

BUREAU OF ENGRAVING AND PRINTING

Senator CORDON. We will be glad to hear from the next group, which I believe is the Bureau of Engraving and Printing.

The standard classification schedule and justification submitted by the Bureau will be printed in the record at this point.

(The schedule and justification referred to is as follows:)

1 Excludes supplemental appropriation of $1,650,000 which has been requested.

BUREAU OF ENGRAVING AND PRINTING SALARIES AND EXPENSES

(Estimate 1949, $12,830,000; 1948 act, $12,005,000)

(House hearings, pt. 1, p. 275)

(House bill, p. 13, line 16)

Page 13, line 16, strike out "$12,000,000" and insert in lieu thereof, "$12,830,000."

Appropriation, 1948-

House report

Supplemental estimate, 1948 (pending)

Estimate, 1949_

Recommended in bill, 1949

$12, 005, 000

1,650, 000 12, 830, 000

12, 000, 000

"A supplemental estimate of $1,650,000 for 1948 is for producing additional paper currency, based upon the increase in the volume of redemptions above that originally estimated for 1948. This should be a nonrecurring item, and should not be reflected in the amount required for 1949. Estimates of the work load of this Bureau are somewhat erratic. Although the estimate includes $125,000 for additional equipment, testimony of the Director was to the effect that no need therefor can be seen at the present time. The amount appropriated for 1948 is deemed to be more realistic than that estimated for 1949, and the amount provided in the bill represents a reduction of $830,000 below the 1949 estimate of $12,830,000."

Justification

An item of $125,000 was included in the estimates of this Bureau for the fiscal year 1949, to cover replacements of worn-out equipment. This amount was $25,000 less than that allowed for many years in previous appropriations. At the time of the hearings before the House Subcommittee on Appropriations, it was stated by the Director that this amount was essential to the operation of the plant, although the items needed could not be specified at that time. For the past 4 years equipment-replacement purchases have averaged $115,000, and in view of the general increase in material prices, it is estimated that the minimum that will be required for this purpose will be $125,000.

The Commissioner of the Public Debt, in a memorandum dated March 10, 1948, stated:

"In reporting the Treasury and Post Office appropriation bill, 1949, the House Appropriations Committee reduced the estimate of the Bureau of Engraving and Printing from $12,830,000 to $12,000,000. Mr. Long has advised me that the result of this reduction would be a reduction of 10,000,000 sheets in the amount of completed currency the Bureau could deliver in 1949. In other words, it would reduce deliveries from 95,000,000 to 85,000,000 sheets.

We have studied very closely the figures on issues and redemptions for the first 8 months of this fiscal year and the amount of completed currency in the Treasurer's reserve over this period. As of February 29, 1948, the Treasurer's reserve stock amounted to only 8,722,000 sheets, an uncomfortably low reserve. Despite our action in lowering the standard of fitness last October, issues are still running slightly higher than the estimated 99,200,000 sheets for the year. Assuming that we obtain supplemental appropriations for 1948 and that you are able to produce and deliver 105,000,000 sheets of completed currency this year, the Treasurer's reserve on July 1, 1948, should be in a comfortable position. We should not permit that reserve to be dissipated, however, by your inability to produce the 95,000,000 sheets of completed currency contemplated in 1949. It is my opinion that if you are not able to produce more than 85,000,000 sheets of completed currency next year, another supplemental appropriation will be necessary to maintain the Treasurer's reserve at a safe level."

This points out the need for the production of 95,000,000 sheets of United States currency during the fiscal year 1949. The House Appropriations Committee reduced the estimates $830,000, of which amount $125,000 was for equipment replacements. If only $705,000 is restored, it would still be impossible to produce the total number of sheets of currency required in 1949 owing to the fact that equipment replacements which may reach $125,000 would have to be made.

In order therefore to meet the requirements of the Treasury for currency, and to keep the equipment of the Bureau operating efficiently, it will be necessary to restore the $830,000.

STATEMENT OF A. L. M. WIGGINS, UNDER SECRETARY OF THE TREASURY, ACCOMPANIED BY W. W. PARSONS, ADMINISTRATIVE ASSISTANT TO THE SECRETARY; W. L. JOHNSON, BUDGET OFFICER ; C. R. LONG, ASSOCIATE DIRECTOR, BUREAU OF ENGRAVING AND PRINTING; AND EDWIN L. KILBY, COMMISSIONER, BUREAU OF THE PUBLIC DEBT

Mr. JOHNSON. Mr. Hall is unable to be here this morning. Mr. Long will take over for him.

AMOUNT REQUESTED RESTORED

Mr. LONG. Mr. Chairman, we are asking for the restoration of $830,000 in the appropriation for the Bureau of Printing and Engraving for the fiscal year 1949, which was deleted by the House committee.

It appears from the report of the House committee that this item consists of two parts. First an item of $125,000 for replacement of