(The information requested follows:)

DISTRIBUTION OF ASSETS OF SOCIAL SECURITY TRUST FUNDS AS OF JUNE 30, 1969

The attached tables give the distribution of the assets of each of the four Social Security trust funds as of June 30, 1969, showing the book value of each of the separate types of investments, as well as the cash balances.

TABLE 1.-VALUES OF ASSETS OF OLD-AGE AND SURVIVORS INSURANCE TRUST FUND, JUNE 30, 1969

TABLE 2.-VALUES OF ASSETS OF DISABILITY INSURANCE TRUST FUND, JUNE 30, 1969

TABLE 3.-VALUES OF ASSETS OF HOSPITAL INSURANCE TRUST FUND, JUNE 30, 1969

TABLE 4.-VALUES OF ASSETS OF SUPPLEMENTARY MEDICAL INSURANCE TRUST FUND, JUNE 30, 1969

Mr. VANIK. Put it in the record so that we could have the status of the fund. Mr. Chairman, I suppose we may as well have that for the other funds that we are concerned with today. Let's do it for all of the funds so that we have a statement in the record indicating the present investment portfolio of the various funds with which we are concerned today.

Mr. Chairman, I have no further questions at this time. (The information requested follows:)

AVERAGE INTEREST RATES OF SOCIAL SECURITY TRUST FUNDS AND UNEMPLOYMENT INSURANCE TRUST FUND

The attached table compares the average interest rates, as of June 30, 1968, and June 30, 1969, on the investments of the four Social Security trust funds as compared with the corresponding rates for the Unemployment Insurance Trust Fund.

In considering these data, it should be kept in mind that these average interest rates are affected by the formulas determining the interest rate on new special issues (which formulas are different as between the Unemployment Insurance Trust Fund and the four Social Security trust funds) and by the different incidences of investments as between the several trust funds. In regard to the latter point, a trust fund that had many investments which were obtained years ago would tend to have a much lower average interest rate than a trust fund whose investments were all of recent origin.

Considering the data for June 30, 1969, the interest rate of the UI Trust Fund was about .3% higher than that of the OASI Trust Fund but was significantly lower than the average interest rates of the other three Social Security trust funds. The explanation for these differences is—as indicated previously-primarily the result of the OASI Trust Fund having many investments which were made years ago, whereas the other three Social Security trust funds have investments which have been made much more recently. The UI Trust Fund is "rolled over" annually-rather than having any long-term special issues-but its interest formula produces a lower result than that applicable to newly-issued special issues of the Social Security trust funds.

AVERAGE INTEREST RATES OF INVESTMENTS OF VARIOUS SOCIAL SECURITY TRUST FUNDS

The CHAIRMAN. Without objection, the committee will adjourn until 10 o'clock in the morning in this room. All of you come back, if you will.

(Whereupon, at 6:15 p.m. the committee adjourned, to reconvene at 10 a.m., Thursday, October 16, 1969.)

SOCIAL SECURITY AND WELFARE PROPOSALS

THURSDAY, OCTOBER 16, 1969

HOUSE OF REPRESENTATIVES,
COMMITTEE ON WAYS AND MEANS,

Washington, D.C.

The committee met at 10 a.m., pursuant to notice, in the committee room, Longworth House Office Building, Hon. Al Úllman, presiding. Mr. ULLMAN. The committee will be in order.

Our procedure this morning will be to recognize you, Secretary Shultz, and then the committee will question Secretary Veneman and yourself on this matter.

Could you be here all morning with us, Mr. Secretary?

STATEMENT OF HON. GEORGE P. SHULTZ, SECRETARY OF LABOR;
ACCOMPANIED BY HON. ARNOLD R. WEBER, ASSISTANT SECRE-
TARY FOR MANPOWER; HON. JEROME M. ROSOW, ASSISTANT
SECRETARY FOR POLICY DEVELOPMENT AND RESEARCH
HON. JOHN G. VENEMAN, UNDER SECRETARY, DEPARTMENT OF
HEALTH, EDUCATION, AND WELFARE; ACCOMPANIED BY HON.
ROBERT M. BALL, COMMISSIONER OF SOCIAL SECURITY; HON.
MARY E. SWITZER, ADMINISTRATOR, SOCIAL AND REHABILITA-
TION SERVICE; HON. ARTHUR E. HESS, DEPUTY COMMISSIONER
OF SOCIAL SECURITY; HON. ROBERT E. PATRICELLI, DEPUTY
ASSISTANT SECRETARY; HON. HOWARD A. COHEN, DEPUTY
ASSISTANT SECRETARY; HON. CHARLES E. HAWKINS, SPECIAL
ASSISTANT TO THE ADMINISTRATOR, SOCIAL AND REHABILITA-
TION SERVICE; HON. ROBERT J. MYERS, CHIEF ACTUARY, SOCIAL
SECURITY ADMINISTRATION; AND HON. JULE M. SUGARMAN,
ACTING DIRECTOR, OFFICE OF CHILD DEVELOPMENT

Secretary SHULTZ. I can make my time completely available to the committee. There is only one thing that I would appreciate to the extent that it is possible. We have the ministers of labor from all the countries of Latin America here this week for a conference and I am the chairman of the conference being sponsored by the OAS. To the extent possible, I would like to tell them I will be there at some time or another. I want to make my time completely available to the committee. I just need to know when you will want me so I can plan, that is all.

Mr. ULLMAN. You could be with us this morning and possibly part of the afternoon?

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