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GOVERNMENT LOSSES IN SHIPMENT

SUMMARY JUSTIFICATION OF F. Y. 1973 BUDGET ESTIMATES

This account was created as self insurance to cover losses in shipment of Government property such as coins, currency, securities, certain losses incurred by the U. S. Postal Service, and losses in connection with the redemption of savings bonds.

It is now anticipated that total claims chargeable against
this fund will amount to $702, 000 in fiscal year 1972. This amount
includes $372, 000 for the estimated annual level of claims to be

$330,000. processed plus a claim for the settlement of a loss of approximately Claims in fiscal year 1973 are expected to return to the normal level of approximately $300, 000. An appropriation of fiscal year 1973. $300,000 will provide funds for the settlement of claims through

The following table shows the amounts made available to the fund, charges against the fund by type of claims, and recoveries from the inception of the fund to fiscal year 1973.

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the purposes of the act. Through fiscal 1971 a 34 year period The original act authorized appropriations of $2,500,000 for the first 10 years and such additional suas as may be necessary from time to time for appropriations totaling $2,417,000 and transfers from other Government accounts totaling $766,803 (1940 - $91,803 transferred from Securities Trust Fund; 1959 $50,000, 1961 - $100,000, and 1963 $525,000 transferred from the account "Unclaimed partial payments on United States Savings Bonds") have provided the total of $3,183,803 funds authorized.

Treasury Department, by the Department of the Interior and by the Veterans Administration. 2/ In recent years shipment loeses have involved preponderantly physical transfers of currency by the Department of Defense, by banks in behalf of the

3

Since this fund was established, premium rates for commercial insurance of well over $110 million have been avoided.

Legislative History

Statute

U. S. Code

established a revolving fund known as "the fund for the pay"The Government Losses in Shipment Act" The original act ment of Government losses in shipment" for the replacement of valuables, or the value thereof, lost, destroyed, or 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 Department operations, while acting as an agent for the Treasury Department in the sales of U. S. savings bonds, savings stamps, etc. irrespective of the manner in which the loss occurred. - authorized charges to the Government Losses in Shipment fund for any losses resulting from "Public Debt Act of 1943" payments made in connection with the redemption of savings bonds by the paying agents of the Treasury, where the loss involves no fault or negligence on the part of the paying agent.

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amended Section 8(c) of the "Government Losses in Shipment Act" extending the same provisions to "Revenue Act of 1945" the redemptions of Armed Forces leave bonds as those for the U. S. savings bonds.

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PAYMENT OF GOVERNMENT LOSSES IN SHIPMENT

For an additional amount for payment of Government losses in

shipment, in accordance with section 2 of the Act approved July 8 $300,000 1937 (40, U.S.C. 722) [$700,000 to remain available until expended.

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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 $425 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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