TRAVEL

Mr. PASSMAN. You had $100,000 for travel for fiscal 1957?
Mr. WAUGH. Yes, sir. We made an estimate of $130,000 for fiscal

1958.

Mr. PASSMAN. You are asking for $30,000 additional, making a total of $130,000 for fiscal 1958 as compared to $100,000 in fiscal 1957? Mr. WAUGH. That is correct.

Mr. PASSMAN. For fiscal 1956 your expenditures amounted to $72,923 for travel. How much do you expect to expend for travel in fiscal year 1957 ending June 30, 1957?

Mr. WAUGH. To date we have spent $71,537.

Mr. PASSMAN. Through what period?

Mr. WAUGH. Through April 30, 1957. During the 60 days remaining we have travel items that will go in which will increase this fairly close to the $100,000?

NUMBER OF LOANS

Mr. PASSMAN. From your general statement it is indicated that in fiscal 1956 the bank made 156 export-import loans, using the number only, and in fiscal year 1957 it is estimated the bank will make 355 export-import loans.

What is the estimated number for fiscal 1958? Is it 373?

Mr. WAUGH. Yes, sir. It is on the statement.

Mr. PASSMAN. Does the increased number of loans that you contemplate making account for some of the increase in travel require

ments?

Mr. WAUGH. Yes, sir.

Mr. STAMBAUGH. Plus the fact that we have never done as much travel as we should do.

Mr. WAUGH. We have cut down on travel we should have been taking in the last 12 months. Having no branch offices and with the increased number of credits outstanding, it is imperative for the officers and directors to get into the field as much as they possibly can to protect not only the credits we have outstanding but to investigate

new cases.

CONTRIBUTION TO CIVIL SERVICE RETIREMENT FUND

Mr. PASSMAN. Another large increase is for Civil Service retirement payment in the amount of $97,000. That is mandatory and there is not a thing in the world you can do about it, is that correct?

Mr. WAUGH. Heretofore the Export-Import Bank has never had that item in its statement. When we were appearing before the committee for the extension of our act, they asked if there was any objection on our part to including it, and we said quite the contrary, that we thought it should be included, and that we should pay our fair costs of retirement out of our earnings.

NET PROFIT OF THE BANK IN FISCAL YEAR 1956

Mr. PASSMAN. Mr. President, what was the net earnings of the bank for fiscal 1956?

93523 0-57--2

Perhaps I should add here we do not intend to use the all times, but we think it is advisable to have that figure i.

stances.

Based on loans outstanding and contemplated transact. 000 is estimated to be the minimum required to effective the purposes of the bank as intended by the Congress. Thank you, Mr. Chairman.

Mr. PASSMAN. Thank you. Mr. Waugh. It is rath have a lepartment appear before this committee and it is making money for our Government rather than sp. course, it pleases me to have the honor of handling t budget renest because the opening statement indicates 1958 vou estimate earnings of $1072 million, and you $1,800 for administrative purposes, which is less of the actual earnings of the bank.

PERSONAL SERVICES

What is the total number of positions you are reque 1938

Mr. WAUGH. We are asking for an increase from 1861 or a total of 22 additional employees. At the preser 187 employees.

Mr. PASSMAN. As per statement on page 3 of your i set forth the increase in average employment as 12.

Mr. WAUGH. That is a typographical error. It si Mr. PASSMAN. What are the grades of the new p requesting?

Mr. WarGH. There are no supergrades. The gr men in the Loan, Legal, Engineering, and Economic as the clerical help necessary for the increased numbe: However, we will give you a detailed statement by c inserted here. We requested 10 clerical and stenos out of the 22. One is in the Treasurer's Office, four Administrative, one Engineering, one Legal, and Division. These, however, are not submitted by cla I am sure we can submit for you later.

Mr. PASSMAN. Yes, insert at this point in the rec of the 22 and their pay.

(The information referred to follows:)

The 19 net new positions provided in the 1958 budget cons

(rado

Assistant treasure

| Counsel

Economulat

Engineer

the

Mr. WAUGH. The net earnings of the bank for 1956-—and by net I use the figure after the payment of expense and interest-$60.2 million. Mr. PASSMAN. $60.2 million net profit after interest and administrative expenses, net money to the credit to the Treasury?

Mr. WAUGH. Yes, sir. And from that sum of $60.2 million we paid $22.5 million on dividends on the original billion and added $37.7 million to the reserves of the bank.

AVERAGE INTEREST RATE ON LOANS

Mr. PASSMAN. What is your average interest rate prevailing now compared, we will say, to 1956?

Mr. WAUGH. I would say that the rate we are charging today will average 52 percent, which is probably a full half percent over the rate charged a year ago.

Mr. PASSMAN. In other words, the interest rates prevailing in this country reach into the Export-Import Bank operation?

Mr. WAUGH. The governing factor in our interest rate is the rate we pay the United States Treasury for the money we borrow, which during the past 5 months has been the highest rate the bank has paid in its history.

NET PROFIT OF THE BANK IN FISCAL YEAR 1957

Mr. PASSMAN. What is the estimated net income for fiscal 1957? That is, if you have been able to project that figure to June 30. Mr. WAUGH. Approximately the same as last year, $60.7 million.

ANTICIPATED NET PROFIT OF THE BANK IN FISCAL YEAR 1958

Mr. PASSMAN. Do you have an estimate for fiscal 1958?

Mr. WAUGH. We have estimated $63.1 million for 1958. Both of those figures are net after the payment of interest, and after payment of administrative expense.

REPAYMENT OF LOANS IN DOLLARS

Mr. PASSMAN. Are any of the loans to foreign countries payable in local currencies?

Mr. WAUGH. No, sir, we make our loans in dollars and collect in dollars.

Mr. PASSMAN. You do not make loans repayable in inconvertible currency?

Mr. WAUGH. No, sir.

Mr. PASSMAN. Do you have any comment to make on that?

Mr. WAUGH. I have commented in my testimony on April 10 before the Senate committee when I said that the question of making too many loans repayable in soft currencies was fraught with danger, in my opinion.

Mr. PASSMAN. You are still of the same opinion?

Mr. WAUGH. I have no reason to change that opinion.

Mr. PASSMAN. In many instances we have very little use for the currencies of certain nations?

Mr. WAUGH. We have, as you know, something over $2 billion worth of currencies of other countries now that have been acquired through the sale of agricultural surpluses. That money, of course, is

loaned for the economic development in many countries and is used, of course, in part for the expenses of our own Government within the respective countries.

Mr. PASSMAN. I asked the question for this reason. Mr. Benjamin Fairless, the President's coordinator of the foreign aid program, appeared before our committee several weeks ago. He stated that our policy of making these loans repayable in inconvertible currency should be terminated now, that it was bad policy for this country to be in possession of so much of the currencies of some of the other countries. That is why I thought it would be well to clear that up. The main question is that you do not make such loans.

Mr. WAUGH. That is correct. Our loans are all made in dollars and repayable in dollars.

AMOUNT OF OUTSTANDING LOANS

Mr. PASSMAN. What was the total amount of outstanding loans as of June 30, 1955, and if you can give it to us, as of June 30, 1956?

Mr. WAUGH. At the end of fiscal 1956 we had $2,648.3 million outstanding in loans.

Mr. PASSMAN. Is that 1956?

Mr. WAUGH. Yes.

Mr. PASSMAN. Do you

have 1955? That was as of June 30, 1956? Mr. WAUGH. Yes, sir; $2,740.1 million for June 30, 1955.

Mr. PASSMAN. How about fiscal year 1957?

Mr. WAUGH. Let me add one other figure to the fiscal year 1956 figure. That same day we had $740.1 million authorizations that were not disbursed. So our total exposure is the total of those two figures, namely, $3,388.4 million.

The same figures for the end of 1957 will be estimated at $3,100.3 million and our undisbursed authorizations as of that date will be $1,093 million.

Mr. PASSMAN. What was the total amount of loans made during fiscal 1956?

Mr. WAUGH. The new credits authorized in fiscal year 1956 were 156 in number for $378.7 million.

Mr. PASSMAN. For fiscal 1957 what is the estimate?

Mr. WAUGH. The estimate for fiscal year 1957 is $1,140 million. Mr. PASSMAN. Could you furnish an estimate for the fiscal year 1958, the number of loans and the dollar amount?

NUMBER OF LOANS ANTICIPATED FOR FISCAL YEAR 1958

Mr. WAUGH. We estimate that there will be $850 million in loans in 1958 and 373 in number. Perhaps I should say, to be consistent, that of actual loans paid out we would have to decrease the first figure for 1957 by $500 million and add that to fiscal year 1958. This is assuming there will be no drawdown on the United Kingdom loan prior to June 30, 1957. I think it is rather interesting to get the increase in number of loans we have made during those years.

In fiscal 1956 we made 156 loans. We have made a larger number than that to date with 2 months yet to go. We estimate there will be 373 loans in 1958. In other words, I believe we will double the number of loans in 2 years.