REDUCTION IN EMPLOYEES SINCE CESSATION OF WAR Senator MCKELLAR. Would you give me a list of those who have been dismissed from the Department because of the cessation of the war? (The information requested is as follows:) Activities which have reduced personnel Mr. O'CONNELL. The Foreign Funds Division will be liquidated. Senator MCKELLAR. What activity is that? Mr. O'CONNELL. That is the Foreign Funds Division. Senator MCKELLAR. They had $2,000,000 last year and asked for only $1,000,000 this year. Mr. O'CONNELL. Yes, sir. Senator MCCARRAN. Is that the "funny money"? Mr. O'CONNELL. Do you mean invasion currency? We printed it for the War Department. Senator MCKELLAR. Now, are there any others? Mr. O'CONNELL. One is in the process of reduction. That is the War Finance Division. WAR FINANCE DIVISION Senator MCKELLAR. What page is that? Mr. SCHOENEMAN. It will be found on page 9, line 7. It is part of the larger item. AMOUNT OF HOUSE REDUCTION Senator MCKELLAR. Yes; and how much was requested? Mr. O'CONNELL. The House reduced it from $2,900,000 to $2,000,000. WORK OF DIVISION Senator MCKELLAR. What will the organization do after the war? Mr. O'CONNELL. Primarily they will handle the sale of United States savings bonds to the public through pay-roll deduction plans and other devices. In that connection if the committee desires, perhaps you would like to hear from the former Director of our War Finance Division, Ted Gamble, who is in New York today, but will be available tomorrow. Senator MCCARRAN. I would be glad to hear from him. Senator MCKELLAR. Yes, sir. Mr. O'CONNELL. I believe that he could be down here tomorrow. Senator MCCARRAN. The Internal Revenue Bureau is really not represented here today. Mr. O'CONNELL. That is true, Senator. I am appearing as general counsel, representing the whole Department. Senator MCCARRAN. It is the people at the head of the Bureau we should really interview. Mr. O'CONNELL. Yes; I am the general counsel appearing for the Department as a whole. Senator MCCARRAN. I take it we will not hear from the Bureau of Internal Revenue unless we ask them specifically. Senator MCKELLAR. What is the next one? Mr. SCHOENEMAN. Unless you ask specifically, the Bureau of Internal Revenue is not scheduled to appear. Senator MCKELLAR. I will ask you right now to have them here. What is the other item? Senator MCCARRAN. We ought to have the men at the head of the Bureau. OFFICE OF GENERAL COUNSEL Mr. O'CONNELL. The next item is "Office of General Counsel." Mr. O'CONNELL. Yes, sir. Senator MCKELLAR. The page? Mr. O'CONNELL. Page 3. AMOUNT OF HOUSE REDUCTION Senator MCKELLAR. What did the House cut? Mr. O'CONNELL. They merely reduced the appropriation from $179,000 to $175,000. Senator MCKELLAR. You had $160,000 last year. Mr. O'CONNELL. That is correct. The $160,000 does not include the basic increases. EFFECT OF HOUSE ACTION Senator HAYDEN. The House insists on your firing one man? TOTAL NUMBER OF POSITIONS Mr. O'CONNELL. That is what it would amount to. The General Counsel's Office has a total of 39 or 40 positions. As far as the work in my office is concerned it will not be lighter. Senator MCCARRAN. The work load will be heavier? Mr. O'CONNELL. In some respects it is. Senator MCCARRAN. The very fact part of the 10,000 people in the field working on cases for recovery of taxes, every one of those, or a great number will involve questions of law? Mr. O'CONNELL. Our work will be heavier. DIRECTOR OF PERSONNEL AMOUNT OF HOUSE REDUCTION Mr. O'CONNELL. Director of Personnel in which we have been reduced from $206,900 to $190,000. Senator MCKELLAR. It is an increase over last year? ADDITIONAL POSITIONS REQUESTED Mr. O'CONNELL. We are really asking for four positions in addition to the present personnel. What we are asking for are four classifiers in connection with the classification of employees. These positions aggregate $13,240, and the rest involves mandatory salary adjustments aggregating $3,660, making a total of $16,900 to be restored. The office is a staff office. The work will not change in volume. Senator MCKELLAR. All right, is there anything further, gentlemen? Mr. O'CONNELL. I do not know of anything further, Senator. Senator MCKELLAR. All right. We will adjourn and meet again tomorrow morning at 10: 30. (Whereupon, at 12: 10 p. m., the subcommittee adjourned until 10:30 a. m., Thursday, March 7, 1946.) 83376-46- -8 TREASURY DEPARTMENT APPROPRIATION BILL, 1947 THURSDAY, MARCH 7, 1946 UNITED STATES SENATE, SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, Washington, D. C. The subcommittee met, pursuant to adjournment, at 10:30 a. m., Hon. Kenneth McKellar (chairman of the subcommittee) presiding. Present: Senators McKellar, McCarran, Hayden, Green, and White. TREASURY DEPARTMENT BUREAU OF THE PUBLIC DEBT WAR FINANCE DIVISION STATEMENTS OF TED R. GAMBLE, CONSULTANT; ROBERT W. COYNE, CONSULTANT; VERNON L. CLARK, NATIONAL DIRECTOR; PAUL MCDONALD, ADMINISTRATIVE OFFICER; AND LAWRENCE M. OLNEY, ASSISTANT NATIONAL DIRECTOR, WAR FINANCE DIVISION, TREASURY DEPARTMENT Senator MCKELLAR. We may as well proceed. Who will be the spokesman? Mr. GAMBLE. Mr. Chairman, I will testify. Senator MCKELLAR. State your full name and your official connection. Mr. GAMBLE. My name is Ted R. Gamble, formerly Director of the War Finance Division. However, I am not now Director. Mr. Robert W. Coyne, as field director, started this program with me before the Bureau of the Budget, and he is here with me. Senator MCKELLAR. Mr. Gamble, the item is in line 7 on page 9. The item is $64,700,000. You had $84,250,000 last year, and the estimate for this year was $69,700,000, and House allowed you $64,700,000. What have you to say about it? Mr. GAMBLE. We are here to talk about just one item. UNITED STATES SAVINGS BONDS DIVISION Mr. GAMBLE. United States Savings Bonds Division, formerly called War Finance Division. Our original request was for $3,600,000, and in working that out with the Bureau of the Budget 113 |