DEPARTMENT OF THE INTERIOR BUREAU OF INDIAN AFFAIRS STATEMENT OF FRED H. MASSEY, ASSISTANT COMMISSIONER, BUREAU OF INDIAN AFFAIRS, ACCOMPANIED BY J. LEONARD NORWOOD, BUDGET OFFICER FUNDS FOR CREEK INDIANS Chairman HAYDEN. The Department of the Interior has a matter of Creek Indians to present. The next item is for an amount of $125,000 for the distribution of funds for Creek Indians. The justification will be included in the record at this point. In order to meet the necessary expenses incident to the distribution of funds belonging to the members of the Creek Nation of Indians, the Bureau of Indian Affairs received an appropriation of $200,000 in fiscal year 1957, to remain available until expended. Experience in processing claims to date shows clearly that the appropriation will be insufficient to accomplish the task due to the many complicated heirship cases involved. This estimate will enable the Bureau to continue processing claims filed by the Creek people. JUSTIFICATION In order to meet the necessary expenses incident to the distribution of funds belonging to the members of the Creek Nation of Indians, the Bureau of Indian Affairs received an appropriation of $200,000 in fiscal year 1957, to remain available until expended. When the legislation, which authorized the distribution of these funds to the Loyal Creek and Freedmen Indians, was submitted on January 31, 1955, it was estimated by the Bureau that $200,000 would be sufficient to defray expenses incident to the distribution of these funds. Because of the larger than expected number of heirship cases this amount will not complete the job. Distribution of funds is being made in accordance with the provisions of the act of August 1, 1955 (69 Stat. 431). The act provides for three classes of payments as follows: (1) Allotment equalization. This equalization payment was based on an act of Congress approved June 30, 1919 (41 Stat. 3, 24). Many of these claimants had been dead anywhere from 1 to 36 years. The difficulty and detail involved in determining and locating the present heirs of the claimants entitled to payment has far exceeded that originally anticipated. A total of $35,380.90 has been paid and there remains to be paid $63,553.93 of the amounts due claimants for equaliza tion. (2) Per capita distribution to members of the Creek Nation based on a final roll approved under the act of April 26, 1906. A total of $332,369.46 has been paid and there remains to be paid to this group or their heirs an amount of $230,460.54. (3) Payment of judgment of Indian Claims Commission to the Loyal Creeks, who were dealt with as a group separate and apart from the Creek Nation. They shared in $538,628.29 on deposit in the Treasury, representing the balance of a judgment entered by the Indian Claims Commission in favor of such Indians. This is being distributed on the basis of a payroll prepared pursuant to the act of March 3, 1903 (32 Stat. 982, 994) for the purpose of distributing a $600,000 appropriation that was made as part payment of the same claim. A total of $294,481.35 has been paid and there remains to be paid to this group or their heirs, an amount of $244,146.94. As of June 30, 1959, a total of 11,527 claims have been paid and partial payment has been made on an additional 1,312 claims. The majority of the 11,527 payments made were direct payments and did not involve heirship determinations. There remains to be paid 2,391 claims and the incomplete portion of those 1,312 claims on which partial payment has been made. It is estimated that 3,638 additional claims will be received. Inasmuch as these payments are based on rolls that were approved many years ago, it is estimated that approximately 95 percent of the claims awaiting payment will involve complicated heirship determinations. Many of these remaining claims will involve the heirs of enrollees who have been dead over 40 years. The supplemental estimate for $125,000 provides for continuation of the present staff of 14 positions for this work for 2 years. It is not possible to state categorically that all claims will be settled and funds distributed at the end of this period in view of the difficulty of determining, locating, and making payments to heirs of enrollees. However, the staff is now well experienced in this work and greater progress should be expected. The Bureau proposes to review this operation during this period with the view of determining the need for such amendatory legislation as would be necessary to dispose of any funds remaining undistributed. In the past it has been possible to turn over to the tribes for final disposition certain funds representing unpaid claims. The Bureau has remaining from the $200,000 appropriation a balance which should finance the existing staff through about August 31. Unless additional amounts are made available, it will be necessary to terminate this well-trained staff. This would result in starting anew with an untrained staff at some future date when funds might be available for this work. If this occurred the cost to the Government would be much greater. GENERAL STATEMENT Mr. MASSEY. Mr. Chairman and members of the committee, I appreciate the opportunity of appearing before you to explain the need for a supplemental appropriation to cover the costs of distributing funds belonging to the members of the Creek Nation of Indians. The act of August 1, 1955, 69 Stat. 431, which provided for this distribution of tribal funds also provided for an appropriation of $200,000 for necessary expenses incident to such distribution. The Congress appropriated this amount in fiscal year 1957. Legislation is now pending action by the Congress which will increase the appropriation authorization for expenses from $200,000 to $325,000. The distribution of the tribal funds involves three classes of payments: (1) to complete allotment equalization, (2) to distribute funds from a judgment of the Indian Claims Commission, and (3) to distribute per capita residual funds to members of the Creek Nation whose names appear on the final roll approved under the act of April 26, 1906. As of the past June 30, the Bureau had received 15,230 claims for payment and had paid in full or in part 12,839 of them. It is estimated that 3,638 additional claims will be received. Those claims which have not been paid, with few exceptions, require determinations as to rightful heirs. It is for this reason that it has not been possible to complete the distribution of these funds. To do so will require the continuation of the present staff to adjudicate the remaining heirship claims. I shall be pleased to answer any questions the committee may have. Chairman HAYDEN. It is my understanding that Senate bill S. 2339, which increases the authorization to $325,000, has passed the Senate and that a companion bill, H.R. 837 is now awaiting action on the House Consent Calendar. Am I correct? Mr. MASSEY. That is correct, sir. Chairman HAYDEN. I note in the justification the sum requested is to continue the services of some 14 employees for a period of 2 years. Do you think it will take 2 more years to complete the job? your statement. TREASURY DEPARTMENT BUREAU OF THE MINT SALARIES AND EXPENSES STATEMENTS OF WILLIAM H. BRETT, DIRECTOR OF THE MINT; LELAND HOWARD, ASSISTANT DIRECTOR OF THE MINT; FREDERICK W. TATE, CHIEF ACCOUNTANT, AND BEN C. HOLLYFIELD, ASSISTANT CHIEF ACCOUNTANT BUDGET REQUEST Chairman HAYDEN. The Treasury Department, Bureau of the Mint, has a request for an additional amount for "Salaries and expenses," $300,000. You may proceed, Mr. Brett. Mr. BRETT. Mr. Chairman, I have a formal statement here. If you would like to have me read it, or I can brief it, sir. Chairman HAYDEN. You may highlight it. Mr. BRETT. First, I would like to say for 5 years as Director of the Mint, this is the first time I have ever appeared before the Senate. I am kind of proud of that amateur standing because we have never asked for a supplemental in the last 5 years. PREPARED STATEMENT Chairman HAYDEN. Your statement will be included in the record in full, and you may proceed. (The statement referred to follows:) Mr. Chairman and members of the committee, it is a pleasure to appear before this committee and explain the need for a supplemental appropriation for the production of additional domestic coins. Coins are ordered from the mints by the Federal Reserve banks and branches in quantities required for the country's business transactions, and the volume of the coinage program is therefore determined by the public need for coins. The coin demand is subject to extreme fluctuations. Although we are usually able to meet sudden heavy demands by readjustments of programs, etc., sometimes the fluctuation is so extensive that it is necessary to request supplemental funds. The most recent supplemental requested for this purpose was in fiscal 1952. Funds presently available to the mint provide for the production of 1,550 million coins. With the present high level of employment and business activity, the banks are calling for coins in much greater quantities. Ordinarily, the major portion of the coin demand occurs in the fall months, prior to the Christmas season. This year, the demand has been very heavy in the early part of the year. During the first 7 months of the calendar year 1959, the mints delivered 1,267 million coins to the Federal Reserve banks, and reserve stocks in the mints now amount to about 43 million pieces. During the same period of the calendar year 1958, the mints delivered 693 million coins to the banks and reserve stocks amounted to 347 million pieces. Present funds are inadequate for production of the quantities of coins now being requested, and a backlog of unfilled orders is growing larger. This backlog should be liquidated before business concerns, which use large quantities of coins for making change, become aware of the situation and begin to hoard coins. It is necessary to take action immediately, by increased production, to preclude widespread hoarding which makes the shortage more acute. Numerous complaints regarding delayed deliveries are already being received from the banks. The supplemental funds requested will provide for production of approximately 350 million additional coins. I shall be pleased to furnish any additional information which you may request regarding the coinage program. GENERAL STATEMENT Mr. BRETT. Actually, we are asking for $300,000 to produce 350 million more pieces of coin in the fiscal year 1960. We have experienced an unusually heavy demand in the first 7 months of the calendar year which is usually a very light period. We can give our reasons or our guesses for this increase, but our inventories are extremely low. At the present time they are down to 40 million pieces, which is a small fraction of what they were a year ago. We are entering into our heaviest demand season, September through Christmas, where we are called upon to produce the largest quantity and deliver the largest quantity of coins of any time during the year. Mr. Chairman, I think that covers the situation. Chairman HAYDEN. The House had hearings on the supplemental as late as June 18 and the Senate as late as July 24. Why could not this item have been presented then? Mr. BRETT. As of December 31, at the time early in January that we came for our 1960 money on the Hill, we had a very comfortable inventory of coin, ample supply-in comparison with the average of the previous 3 to 5 years, we had heavy inventories. The demand of the previous 6 months, that is the heavy demand season for the calendar year 1958, showed no indication of a big increase in the demand. It was just about the same demand that it had been for the previous 3 years. INCREASE IN DEMAND FOR COIN The increase in the demand for coin has all occurred since January 1 and has been accelerated particularly in May and June. Chairman HAYDEN. Is it because more coin vending machines are being made all the time? Mr. BRETT. Well, there are a good many reasons. Of course, the population is growing, there are a great many more market centers being built, there are more vending machines, there are more parking meters, and it does fluctuate terrifically from year to year. Chairman HAYDEN. For fiscal year 1960 Congress allowed an appropriation of $4,300,000, the Budget request. This being the first quarter of fiscal year 1960 why cannot the changes be made in the allocation of funds in order to assure the most efficient use of available funds. Can you not reallocate the amount? Mr. BRETT. I am going to ask Mr. Howard, Assistant Director, who is more familiar with these accounting procedures, to answer that question. Mr. HOWARD. Mr. Chairman, I think we should look at the mint as a whole. We are talking about coins. That is only one function of the mint. |