DEFICIENCY FROM NORMAL OPERATIONS

Mr. CANNON. Generally speaking, these items, as I understand it, grow out of the normal operations and not because of new projects or new undertakings? They are items which must be taken care of and represent appropriation charges which must be met before the end of this fiscal year?

Mr. STROM. That is correct, sir.

Mr. CANNON. You do not include anything there which can be absorbed? Cannot you absorb any of these amounts because of having had lesser charges in other items which are not under consideration here?

Mr. STROM. These are actual amounts needed in each appropriation.

Mr. CANNON. This is the irreducible minimum, then?
Mr. STROM. That is right.

SAVINGS IN APPROPRIATIONS

Mr. TABER. Did the gentleman understand the chairman's question, as to whether or not you had other items where you had a surplus of cash that might be used to take care of some of these things?

Mr. CANNON. Yes; other amounts allocated for projects not involved in this submission. Have not you made savings in other items that are not before us in this estimate?

Mr. STROM. Yes, sir.

Mr. CANNON. Have not you made sufficient savings there to absorb this amount?

Mr. STROM. There will be savings in certain appropriations not listed in House Document 555. In other words, we will not spend the total amount that has been appropriated.

APPROPRIATIONS NOT TRANSFERRABLE

Mr. CANNON. Then why could not you use that money to take care of these items here and get along without a deficiency—at least without an urgent deficiency?

Mr. STROM. We cannot transfer funds from one appropriation to another. This is the net amount needed in every case.

Mr. KELLY. We are restricted by the appropriation act and the Comptroller General will not allow us to spend money out of one appropriation for something appropriated for by another appropriation.

Mr. TABER. But we could give you the authority.

Mr. KELLY. Yes; you could.

Mr. CANNON. If you had the money, all you need is the authorization.

Mr. KELLY. Yes.

Mr. CANNON. We would be glad to arrange that, and would prefer to arrange it in that way rather than to provide a new appropriation.

ESTIMATED SAVINGS IN APPROPRIATIONS AS OF APRIL 24, 1946 Now, what balances have you; what appropriations have you in which you have balances remaining which could be used for this purpose with the proper authorization, and in what amounts?

Mr. STROM. In submitting these estimates to the Bureau of the Budget on April 24, 1946, we did submit a complete statement showing what we expected to save in each appropriation. That, of course, did not take into consideration the law passed yesterday for salary increases of $400 in the field, Public Law 386.

Mr. CANNON. On that you have had no estimates yet, but you will later submit estimates. But all there is to that is to know a little arithmetic, and when you send that up it will be just a matter of a correct arithmetical computation. That being true, I hardly see why it would be necessary to call you up here after we get those estimates. Mr. STROM. The estimates are with the Bureau of the Budget. Mr. CANNON. What we would like to have now is what balances you have and will have on hand, unexpended, in items other than those included in this estimate.

Mr. STROM. The estimates we gave to the Bureau of the Budget on April 24 show $5,769,581.

Mr. KELLY. Spread over a number of appropriations.

Mr. STROм. Spread over numerous appropriations.
Mr. TABER. Give us a list of them.

Mr. STROM. They are as follows:

Salaries, Office of Postmaster General_

Salaries, Third Assistant__

Salaries, Fourth Assistant_

Salaries, Bureau of Accounts_

$318

3, 020

4, 205

Manufacture and distribution of stamps and stamp paper_
Vehicle service_

1, 892, 418 473, 362 14, 244

That should be a total of $5,769,581. But, in that connection, I want to call your attention, Mr. Chairman, to the fact that while those are estimated savings at that time, they will be eliminated or reduced in some instances because of the enactment of Public Law 386 yesterday.

ESTIMATED REVENUES, OBLIGATIONS AND DEFICIENCY

Mr. CANNON. Well, as I have said, that is merely a matter of mathematical computation. Have you any further general statement you would like to make on this?

Mr. STROM. Not unless you desire some information as to the estimates of revenues and expenditures for the year.

We now estimate revenues will be $1,233,901,845. As of April 24, we estimated our obligations would be $1,311,222,065. That would

leave a deficit of $77,320,220, but the cost of the new pay bill will increase the deficit $82,412,994 for 1946.

Mr. CANNON. I have it here as $79,661,100.

Mr. STROM. That is the amount of money needed to meet the cost of $82,412,994.

Mr. CANNON. This is estimated from January 1 to July 1?

Mr. STROM. That is right; the amount of appropriations needed. The cost of the bill you will find in the third column from the right. The second column from the right shows cost to be absorbed in present appropriations. The actual cost, $82,412,994, must be used in calculating the surplus or deficit for the Post Office Department. The additional cost of the pay bill will bring our obligations for the year up to $1,393,635,059, and the deficit to $159,733,214. Mr. CANNON. Are there any questions?

ESTIMATED OBLIGATIONS FOR DEFICIENCY ITEMS, 1946

Mr. TABER. I have no questions. I suppose we ought to go into these various items here. For compensation to postmasters, your appropriation was $81,574,000. How much of that has been spent down to the 1st of May?

Mr. STROM. I would like to call on the First Assistant for that.
Mr. TABER. Well, I want that on every one of these items.

Mr. CANNON. If the gentleman will permit, I think you will find that on page 4.

Mr. TABER. That does not show the figure, does it?

Mr. STROM. It shows obligations to the end of the March quarter, and an estimate for the June quarter.

Mr. TABER. These are actual for the first three quarters?

Mr. STROM. Yes, sir; on an obligation basis, exclusive of cost of Public Law 386.

Mr. TABER. I think this table on page 4, perhaps, ought to go in the record.

Mr. CANNON. Without objection, that will be inserted in the record.

Mr. TABER. This table on page 4 does not relate to anything except items for which deficiencies are asked?

Mr. STROм. That is correct.

Mr. TABER. That is all I care to ask.

(The matter above referred to is as follows:)

Obligations and estimated obligations, by quarters, fiscal year 1946, submitted for Third Deficiency Appropriation Act, 1946, H. Doc. 555 (as

of May 9, 1946)

COST OF PUBLIC LAW 386, SALARY INCREASES

Mr. TABER. On this pay increase, why not put this table into the record now, and then we will not have to call them back?

Mr. CANNON. Without objection, it will be included in the record at this point.

(The matter above referred to is as follows:)