TABLE 1.-Budget estimates, 1952, compared with appropriations and REA and FHA borrowing authorizations, 1951-Continued

[NOTE.-1951 figures represent net amounts available after reductions under sec. 1214 of the 1951 General Appropriation Act and are adjusted for comparability with the appropriation structure proposed in the 1952 budget estimates.]

Due to carry-over of funds from prior years, on an available-funds basis, a loan program of $300,000,000 is planned for 1951 and $220,000,000 for 1952.

Due to carry-over of funds from prior years, on an available-funds basis, a loan program of $30,000,000 is planned for 1951 and $14,000,000 for 1952.

Under existing authority, the Commodity Credit Corporation is authorized to borrow and have outstanding a maximum of $6,750,000,000 at any one time. The Corporation must, however, reserve sufficient borrowing authority to assure its ability to purchase, in accordance with its contracts with lending agencies, loans made and held by such agencies. On June 30, 1950, borrowings against this authorization amounted to $3,193,201,303 and loans held by lending agencies amounted to $443,313,396. New borrowings are estimated at $1,776,000,000 for 1951 and $1,719,000,000 for 1952 and outstanding borrowings are estimated at $2,555,000,000 as of June 30, 1951, and $2,469,000,000 as of June 30, 1952. Loans held by lending agencies are estimated at $223,200,000 as of June 30, 1951, and $297,950,000 as of June 30, 1952.

Present indications are that the borrowing authority of $6,750,000,000 will be adequate to cover all of the Corporation's obligations in 1952.

Exclusive of repayments of borrowings, funds used in carrying out the Corporation's activities amounted to $3,701,432,818 for fiscal year 1950 and are estimated to aggregate $2,822,849,377 for fiscal year 1951 and $2,243,658,917 for fiscal year 1952.

The Corporation's books show a deficit of $798,236,490 as of June 30, 1950, consisting of $627,721,359, being the net loss for 1950, and $170,515,131, being the deficit on June 30, 1949. On September 6, 1950, a restoration of $66,698,457 was approved to cover the deficit in 1949. The difference between the deficit shown on the books of the Corporation as of June 30, 1949, and the amount of this restoration of capital resulted from the net adjustments based on the Secretary of the Treasury's appraisal of the Corporation's assets and liabilities as of June 30, 1949. These adjustments were based on the provision of the act of March 8, 1938, which defines asset values for appraisal purposes as the lower of cost or average market prices for the month of June. The Corporation, however, takes into consideration prospective sales outlets, the effect of production and price support levels on market prices, and the cost of carrying the assets in arriving at their estimated value. While the actual amount of the restoration of capital will depend on the amount of the capital impairment established by the Secretary of the Treasury as of June 30, 1950, the estimated amount of $427,000,000 is based on Treasury valuation principles rather than the deficit ($798,236,490) as shown on the books of the Corporation.

Federal Crop Insurance Corporation

Appropriation for operating and administrative expenses:
Appropriation, 1951, after reduction under sec. 1214.
Budget estimate, 1952

Increase..

Funds provided by income from insurance premiums, sales of commodities, and interest are estimated at $14,481,800 in fiscal year 1951 and $22,297,700 in the . fiscal year 1952. Funds applied to operating costs, other than administrative expenses, are estimated to aggregate $12,178,000 for the fiscal year 1951 and $19,932,900 for the fiscal year 1952. Total insurance coverage of the Corporation is estimated at $256,000,000 in fiscal year 1951. Total coverage is expected to increase to $475,000,000 in fiscal year 1952 as a result of greater participation in present areas.

Net operating results for crop year 1949 show indemnities exceeding premiums by $3,957,267. For crop year 1950, over-all insurance operations are expected to show a net income of over $2,200,000.

Authorized capital stock of the Corporation is $100,000,000, of which $73,000,000 is unissued.

Corporations supervised by the Farm Credit Administration

The above wholly owned corporations, under the supervision of the Farm Credit Administration, have been organized and are in operation for the purpose of furnishing and facilitating long-and-short-term credit for agricultural purposes. With the exception of the Production Credit Corporations, they are authorized by law to borrow funds for current operations. For more detailed information on the activities of these corporations, see pages 462 to 476 of the 1952 budget. In addition, the Farm Credit Administration examines and supervises the Federal land banks and the banks for cooperatives which are a part of the farm credit system.

SUMMARY STATEMENT OF SUBAPPROPRIATIONS

Mr. ROBERTS. Table 2, which is a subappropriation table, also provides the information Mr. Andersen referred to earlier this morning. There is a column in it, you will notice, which indicates the reductions made under section 1214 of the 1951 General Appropriation Act. They are shown on a subappropriation basis, so you can see the complete picture there on the adjustments made under that provision of the 1951 act.

(The table referred to is as follows:)

79808-51-pt. 1—4

See footnotes at end of table, p. 53.

TABLE 2.-Subappropriations-Appropriations and REA and FHA borrowing authorizations, 1950, 1951, and budget estimates, 1952

Continued