This fund was established in 1956 (70 Stat. 1112) to finance the acquisition and initial improvement of Wherry Act housing as authorized by section 404 of the Housing Amendments of 1955 (69 Stat. 652), as amended. The Military Construction Act of 1962 (76 Stat. 236) established the Defense family housing management account, repealed the authority underlying the Wherry housing fund, and directed the transfer of the unexpended balances of the fund into the new housing management account. The transfer was effected as of the beginning of 1963, and all subsequent activities formerly financed under the Wherry fund are now financed under the new management account, Family housing, Defense.

As of the end of 1962, 72,771 units of Wherry housing had been acquired at an acquisition cost of $650 million.

236) (-)-----

End of year.

Retained earnings.

-247,000

247,000 247,000 122,076 167,041

REVOLVING AND MANAGEMENT FUNDS-Con.

Public enterprise funds-Continued

DEFENSE HOUSING, NAVY-Continued

This fund financed the maintenance, operation, improvement, and liquidation of temporary family housing units (70 Stat. 1105). Funds for operation of the fund were provided by rental receipts.

On January 1, 1962, all financing and operations of this account were transferred to the Operation and maintenance, Navy, and Operation and maintenance, Marine Corps, appropriations.

Revenue, Expense, and Retained Earnings (in thousands of dollars)

DEFENSE PRODUCTION GUARANTEES Guarantees are given on loans made by public and private financing institutions by the Army, Navy, and Air tracts. When necessary, loans may be purchased by the Force to facilitate performance of defense production conGovernment. Administrative expenses are financed from guarantee fees and interest on loans receivable. Funds in excess of guaranteed loan program requirements may be transferred to miscellaneous receipts of the Treasury, Net earnings are retained to purchase loans when required under guarantee commitments and to cover possible future losses (50 U.S.C. app. 2091).

LOANS GUARANTEED [Dollars in millions]

Revenue..

As of June 30, 1962..

561

Expense.

As of June 30, 1963.

477

As of June 30, 1964_

Retained earnings, start of year.

391

Payment of earnings (—).

-29

Earnings transferred to (-)

Outstanding balance June 30, 1962... Additional guaranteed private credit available June 30, 1962..

"Operation and maintenance, Navy".

-107

"Operation and maintenance, Marine

Corps"

-339

1964 estimate

The Government's acquisition of loans under this program in the Department of Defense is reflected in the following schedules:

DEFENSE PRODUCTION GUARANTEES, ARMY

Program and Financing (in thousands of dollars)