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$ 24, 323

12,828

$485,147

196 4,856

$151,785

42, 163
43,222
2,922

283

$110,042

2,713
6,736
11,698
38,717

1,114
77,698
62,293

229

377

$1,504,627

536,691
343, 716

4,210
138,501

58,352
156,694
330,988
167,749
100,397

$2,019,480

536,495
338, 860

43,833
135, 238

57,418
155, 184
330,292
166,668
398,690

429

3,263

934
1,510

696
1,081
1,707

17,690 5,686 2,268 57,900

223,968
180,135

4,897
252,479

97,295
167,003

335
1,645

28,037

GOVERNMENT LOSSES IN SHIPMENT

SUMMARY JUSTIFICATION OF F. Y. 1973 BUDGET ESTIMATES
This account was created as self insurance to cover losses

processed plus a claim for the settlement of a loss of approximately
in shipment of Government property such as coins, currency,

$330, 000. Claims in fiscal year 1973 are expected to return to the securities, certain losses incurred by the U.S. Postal Service,

normal level of approximately $300,000. An appropriation of and losses in connection with the redemption of savings bonds.

$300,000 will provide funds for the settlement of claims through

fiscal year 1973.
It is now anticipated that total claims chargeable against
this fund will amount to $702, 000 in fiscal year 1972. This amount

The follow ing table shows the amounts made available to the
.inc ludes $372, 000 for the estimated annual level of claims to be

fund, charges against the fund by type of claims, and recoveries
from the inception of the fund to fiscal year 1973.

PAYMENT OP OOVERNMENT LOSSES IN SRIPMENT
(Effective July 1, 1937, 40 0.9.c. 722)

PAYMENT OF CLAIMS

Fiscal Year

Pinds
authorized

Losses pertaining to public debt Items

Treasury, Bureau
of the Public Debt
(erroneous

Post orrice
redemptions of Department
savinge bonds and (losses of U.S.

Armed Forces savings starps)
Leave bonds)

Total Losses

Shipment losses,
various agencies 2

(106ses of
currency coin and
other valuables)

Recoveries
of payments
for losses

Net charged
to the und

Balance
in rund

$1,043,803

525,000
550,000

Actual
1938 through 1962

Cumulative
1963
1964
1965
1966
1967
1968
1969
1970
1971

$1,242,800
491,815
293,758
29,590

265,000

61,3
263,009
132,252
314, 460

400,000

100,000

Total Actual ( 36 years)

3,183,803

2,985,300

372,277

324,348

3,681,925 31

499,767

3,182,158

1,645

Estimate
1972
1973

700,000
300,000

322,645
266,000

30,000
30,000

350,000

5,000

TO2,645
301,000

1,000
1,000

701,645
300,000

:

Grand Total

1,183,803

3,573,945

132,277

679,348

4,685,570

501,767

4,183,803

1 The original act authorized appropriations of $2,500,000 for the first 10 years and such additional suns as may be necessary from time to time for

the purposes of the act. Through fiscal 1971 -- a 34 year period -- appropriations totaling $2,417,000 and transfers from other Government accounts totaling $766,803 (1940 - $91,803 transferred from Securities Trust Pund; 1959 - $50,000, 1961 - $100,000, and 1963 - $525,000 transferred from the

account "Unclalsed partial payments on United States Savings Bonde") have provided the total of $3,183,803 Punde authorized 2 In recent years shippent losses have involved preponderantly physical transfers of currency by the Department of Defense, by banks in behalf of the

Treasury Department, by the Department of the Interior and by the Veterans Adainistration. 3 Since this fund was established, premium rates for comercial insurance of vell over $110 million have been avoided.

Legislative History

Statute

U.S. Code

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The original act - "The Government Losses in Shipment Act" - established a revolving fund known as "the fund for the pay- 50 Stat 479 ment of Government losses in shipment" for the replacement of valuables, or the value thereof, lost, destroyed, or (July 8, 1937) damaged in the course of shipment by the executive departments, independent establishments, agencies, wholly owned

corporations, officers, and employees of the United States. "The Government Losses in Shipment Act, amendments" - authorized charges to the fund for losses arising from Post Office 53 Stat. 1358

Department operations, while acting as an agent for the Treasury Department in the sales of U. S. savings bonds, savings (Aug. 10, 1939)

stamps, etc. irrespective of the manner in which the loss occurred. "Public Debt Act of 1943" authorized charges to the Government Losses in Shipment fund for any losses resulting from 57 Stat, 63

payments made in connection with the redemption of savings bonds by the paying agents of the Treasury, where the loss (April 12, 1943)

involves no fault or negligence on the part of the paying agent.
"Revenue Act of 1945" amended Section 8(c) of the "Government Losses in Shipment Act" extending the same provisions to 59 Stat. 574
the redemptions of Armed Forces leave bonds as those for the U. S. savings bonds

(Nov. 8, 1945)

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PAYMENT OF GOVERNMENT LOSSES IX SUIPMENT

For an additional amount for payment of Government losses in shipment, in accordance with section 2 of the Act aproved July & 1937 (40, U.S.C. 722), ($700,000, to remain available until cspended.

$300,000

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BUREAU OF THE PUBLIC DEBT

ADMINISTERING THE PUBLIC DEBT
For necessary expenses connected with any public-debt issues of the United

States. [$77,490,000] $76,460,000. (31 U.S.C. 731-774, 1023;:12 U.S.C. 391; Treas-

ury Department Appropriation Act, 1972.)

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Total obligations.

69, 206

76, 498

76, 460

PERSONNEL SUMMARY

Total number of permanent positions..

Full-time equivalent of other positions.

Average paid employment.

Average GS grade.

Average GS salary.

Average salary of ungraded positions.

2,575

32

2, 444

5.7

$9, 102

$7,855

2, 548

15

2, 457

5.7

$9, 215

$7,800

2, 564

15

2, 473

5.7

$9, 246
$7,854

PROGRAM AND FINANCING (IN THOUSANDS OF DOLLARS)

1971 actual 1972 estimate 1973 estimate

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· Senator MONTOYA. The subcommittee will now take testimony on
the fiscal 1973 request of $76,460,000 for the Bureau of Public Debt.

The amount requested is a decrease of $1,030,000 under the amount
appropriated for fiscal year 1972. The $76.4 million request includes
$9.27 million for the U.Š. Savings Bonds Division, a separate organi-
zation directly responsible to the Secretary, as well as $43.3 million
for reimbursable expenses to Federal Reserve banks, paying agents,
and the U.S. Postal Service. The figures cited exclude a proposed sup-
plemental request which we understand will be forthcoming in the near
future. That request amount is unknown at this time.

Mr. Hintgen, you may proceed with your statement after identi-

fying your colleagues.

Mr. HINTGEN. Yes, sir. Immediately to my left is Mr. McGeoghe-

gan, the deputy commissioner in charge of our Chicago office. To his
Ieft is Mr. Lubeley, the bureau's deputy commissioner. To my immedi-
ate right is Mr. Vallely, our budget officer.

PREPARED STATEMENT

If I may, sir, I would like to submit for the record a more detailed statement that we prepared for the House Appropriations Committee and summarize it for you, if I may.

Senator MONTOYA. You may do so, sir.

1972 APPROPRIATION AND 1973 BUDGET REQUEST

Mr. HINTGEN. Mr. Chairman and members of the committee: I am pleased to have this opportunity to present our 1973 appropriation request. The appropriation Administering the Public Debt provides funds for the Bureau of the Public Debt and the U.S. Savings Bond Division. Representatives of the Division will appear later to justify their own requirements. We are not asking for an increase in funds above the amount appropriated for the current year. For 1973 our appropriation request is $76,460,000, which is $1,030,000 less than the $77,490,000 which Congress appropriated for 1972.

As you know, the President ordered a 5-percent reduction in personnel which reduced the amount we were authorized to obligate by an additional $962,000. Our request for 1973 is $68,000 below the 1972 appropriation less this reduction in personnel funds. We are not asking for an increase in the appropriation despite the continued growth in the responsibilities of the Bureau.

We must be prepared to furnish whatever administrative support is needed to implement decisions arising from the management of a debt that was about $125 million on February 29, 1972, and is expected to be well above that figure at the close of fiscal 1973.

I have here a statement that I presented to the House Appropriations Committee and I would like to insert it in the record.

PREPARED STATEMENT

Senator MONTOYA. It will be made a part of the record.
The statement follows:)

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