The substitute laborers who would be subject to the provisions of this bill, if enacted, are only employed during leave without pay of regular employees, and in emergencies. Consequently, they perform very little service and at infrequent periods. The Department, therefore, does not feel that it would be advisable to grant these employees leave with pay because of the extremely limited amount of service performed by them. Furthermore, it may be stated that it would be difficult to grant these employees the leave which would be due, because of the infrequent periods of service. For the reasons above indicated, this Department does not favor the enactment of the bill. It has been ascertained from the Bureau of the Budget that this report is in accord with the program of the President. Very truly yours, W. W. HOWES, Acting Postmaster General. For the information of the Members of the House there is quoted below the provisions of law granting leave with pay to regular employees in the Postal Service: [U. S. C. 1934 ed., title 39, sec. 823] Leaves of absence; sick leave: Employees in the Postal Service shall be granted fifteen days' leave of absence with pay exclusive of Sundays and holidays, each fiscal year, and sick leave with pay at the rate of ten days a year. exclusive of Sundays and holidays, to be cumulative, but no sick leave with pay in excess of six months shall be granted during any one fiscal year. Sick leave shall be granted only upon satisfactory evidence of illness in accordance with the regulations to be prescribed by the Postmaster General. 75TH CONGRESS HOUSE OF REPRESENTATIVES 3d Session REPORT {No. 2315 AMEND SECOND LIBERTY BOND ACT, AS AMENDED MAY 9, 1938.—Committed to the Committee of the Whole House on the state of the Union and ordered to be printed Mr. DOUGHTON, from the Committee on Ways and Means, submitted the following REPORT [To accompany H. R. 10535] The Committee on Ways and Means, to whom was referred the bill (H. R. 10535) to amend the Second Liberty Bond Act, as amended, having considered the same, report thereon favorably without amendment and recommend that the bill do pass. GENERAL STATEMENT The purpose of the proposed bill is to provide greater flexibility in the management of the public debt. Under existing law the total amount of public-debt obligations which may be outstanding at any one time is $45,000,000,000 subject to a limitation on the amount of bonds which may be outstanding at any one time to an aggregate of $25,000,000,000 and a limitation on the amount of Treasury notes, certificates of indebtedness, and Treasury bills to be outstanding at any one time to an aggregate of $20,000,000,000. The Secretary of the Treasury has pointed out that the present limitations on the different classes of securities which may be outstanding at any one time will seriously interfere with the efficient and economical financing of Government requirements during the next year unless amended at this time. Under existing legislation the total additional amount of bonds which may be issued is approximately $1,700,000,000, while the total additional amount of notes, certificates of indebtedness, and Treasury bills which may be issued is about $6,170,000,000. There is authority to issue approximately $7,870,000,000 of additional public-debt obligations and the Secretary of the Treasury has stated that, while the total authority is sufficient for the present, the division as between bonds and notes, certificates of indebtedness, and Treasury bills should be adjusted in order to give the Treasury more latitude as to the kind of securities it can issue. During the balance of the calendar year outstanding Treasury notes aggregating more than $1,600,000,000 will mature and in addition it will probably be necessary for the Treasury to raise additional cash of from $500,000,000 to $1,000,000,000, making maximum financing during the next 8 months' period, exclusive of Treasury bill operations, of approximately $2,600,000,000. The Secretary of the Treasury informed the committee that it may be highly desirable, from the standpoint of the public-debt program and the Government security market, for the Treasury to meet the maturing notes and to raise whatever additional cash is necessary, or a major portion thereof, through the issuance of additional Treasury bonds rather than through the issuance of Treasury notes. The Treasury deems it necessary to reserve approximately $248,000,000 of the present bond limitation to cover estimated additional issues of United States savings bonds during the balance of the calendar year. This will leave only $1,450,000,000 available for further bond issues under the present limitation and this might not be sufficient to meet the Treasury's requirements in connection with the maturing notes aggregating more than $1,600,000,000 and the additional financing which will be necessary. The bill will have no effect on the total of the public debt outstanding, as this amount will depend upon expenditures made in pursuance of law. It does permit the Secretary of the Treasury to issue securities best suited at the time to meet the conditions of the market and the needs of the Government within the limits of the bill. The Secretary of the Treasury recommends the early enactment of this bill. He has pointed out to the committee that the proposed legislation is essential to enable the Treasury to continue its efforts to finance the needs of the Government in the most economical manner possible. The following statement shows the amount of public-debt obligations issued under the Second Liberty Bond Act, as amended, and outstanding as of April 30, 1938, and the additional amounts which the Secretary of the Treasury may issue under the authority of that act: Bonds: Total amount that may be outstanding at any one time. $25, 000, 000, 000 U. S. Savings bonds (maturity Veterans' adjusted-service bonds.. $20, 927, 252, 250 1, 698, 033, 944 Total additional amount of bonds which may be Notes, certificates of indebtedness and Treasury bills: Total amount that may be outstanding at any one time.. 20, 000, 000, 000 Outstanding as of Apr. 30, 1938: Treasury notes. Certificates of indebtedness.. Treasury bills.. $11, 309, 276, 050 767, 465, 000 1,753, 268, 000 Total additional amount which may be issued under 1 Current redemption value, $1,180,736,166 13, 830, 009, 050 6, 169, 990, 950 Recapitulation: Total outstanding public debt obligations as of Apr. 30, Total amount which may be issued under present $45, 000, 000, 000 37, 131, 975, 106 7,868, 024, 894 EXPLANATION OF BILL Section 1 of the bill amends the first paragraph of section 1 of the Second Liberty Bond Act, as amended (U. S. C., title 31, sec. 752), by striking out the present limitation of $25,000,000,000 on the amount of bonds which may be outstanding at any one time. Section 2 of the bill amends section 21 of the Second Liberty Bond Act, as amended (U. S. C., title 31, sec. 757 (b)), by combining under one limitation of $45,000,000,000 the face amount of bonds, certificates of indebtedness, Treasury bills and notes which may be outstanding at any one time. CHANGES IN EXISTING LAW In compliance with paragraph 2 (a) of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill are shown as follows (existing law proposed to be omitted is enclosed in black brackets; new matter is printed in italics; existing law in which no change is proposed is shown in roman): First paragraph of section 1 of the Second Liberty Bond Act, as amended: The Secretary of the Treasury, with the approval of the President, is hereby authorized to borrow, from time to time, on the credit of the United States for the purposes of this Act, to provide for the purchase, redemption, or refunding, at or before maturity, of any outstanding bonds, notes, certificates of indebtedness, or Treasury bills of the United States, and to meet expenditures authorized for the national security and defense and other public purposes authorized by law, such sum or sums as in his judgment may be necessary, and to issue therefor bonds of the United States [: Provided, That the face amount of bonds issued under this section and section 22 of this Act shall not exceed in the aggregate $25,000,000,000 outstanding at any one time]. Section 21 of the Second Liberty Bond Act, as amended: [The face amount of certificates of indebtedness and Treasury bills authorized by section 5 of this Act, certificates of indebtedness authorized by section 6 of the First Liberty Bond Act, and notes authorized by section 18 of this Act shall not exceed in the aggregate $20,000,000,000 outstanding at any one time.] The face amount of bonds, certificates of indebtedness, Treasury bills, and notes issued under the authority of this Act, and certificates of indebtedness issued under the authority of section 6 of the First Liberty Bond Act, shall not exceed in the aggregate $45,000,000,000 outstanding at any one time. о |