Legislative Summary: Economy & Finance


Area Development 
S. 1 — Public Law 87-27, approved May 1, 1961 
As a demonstration of the Senate's "persistence," it has, for the fourth time, passed a $451 million program in an effort to aid in alleviating the suffering in distressed areas hit by unemployment and underemploymentwhere it is substantial and continuousnot temporary and seasonal.

This 4-year program declares its purpose to be one of Federal help for areas needing economic redevelopment, to expand their economic activities, and provide employment wherever possible by

Authorizing the President to appoint an Area Redevelopment Administrator in the Department of Commerce (confirmed by the Senate) to receive compensation equal to an Assistant Secretary. The Administrator is to perform such duties under the act as are assigned to him by the Secretary of Commerce.

Creating an Area Redevelopment Advisory Board to advise the Administrator. The Board is to be composed of the Secretary of Commerce as Chairman and seven other department and agency heads.

Requiring the Secretary to appoint a 25 member National Public Advisory Committee on area redevelopment, composed of representatives of labor, management, agriculture, State, and local governments and the general public.

Authorizing $300 million in Treasury-financed loans

(1) To industrial areas for constructing new factory buildings, rehabilitating and converting existing buildings for industrial use, redeveloping land and purchasing facilities, including machinery and equipment in cases of demonstrated need;

(2) For rural areas for similar type loans; and

(3) For construction, alteration, and expansion of public facilities in both industrial and rural areas.

Authorizing an appropriation of $75 million for public facility grants to be used in areas where the project could not be undertaken without the grant.

Including an anti-pirating provision which prohibits Federal assistance for relocating an existing business enterprise from one area to another.

Setting up eligibility requirements which must be met before assistance can be obtained.

Limiting loans for private projects to 25 years, and up to 40 years for public facilities.

Authorizing grants of $4.5 million to help redevelopment areas evaluate developing potentialities for economic growth.

Making urban renewal grants available to industrial redevelopment areas for nonresidential projects under existing urban renewal programs.

Authorizing an annual appropriation of $10 million for retraining subsistence payments by the Department of Labor to unemployed workers who are undergoing training for a new job under the vocational training program.

Terminating the program as of June 30, 1965. 

Dependent Children — Aid 
H.R. 4884 — Public Law 87-31, approved May 8, 1961 
This bill will

1. Authorize a 14-month program, from May 1, 1961, through June 1962 to permit States to aid needy unemployed persons and their children who are not now eligible for aid in which the Federal Government participates.

2. Use the same matching formula as is used in the present Federal-State aid to dependent children.

3. Require the State agency administering the expanded aid to dependent children program to enter into cooperative arrangements with the State agency administering the public employment officers in order to try to obtain employment for the parent.

4. Require that State welfare agencies enter into cooperative arrangements with the State vocational education agency for retaining unemployed parents.

5. Give the States the option to exclude from the benefits of the bill individuals who are receiving unemployment compensation.

6. Extend until 60 days after the close of the next regular session of the legislature, the effective date of the Flemming ruling which would have denied Federal matching funds to States who have terminated assistance to children in a home determined to be unsuitable unless the State makes other provisions for the children affected.

7. Allow the States the option of bringing needy dependent children under the program where a court of competent jurisdiction finds that the children are not receiving proper care and protection in their own homes and gives responsibility to the State agency to place them in approved foster family homes.

8. Increase from 80 to 100 percent Federal financing of grants for training of public welfare personnel from July 1, 1961, through June 30, 1963.

9. Authorize the use of appropriations to the Department of Labor for its administration of the employment security program to pay costs involved in borrowing State employment security personnel for the recently enacted Temporary Extended Unemployment Compensation Act.

10. Increase by $3 the maximum amount to which the Federal Government will participate, on a matching basis, in State programs carrying out the special medical care provision of 1960 for recipients of old-age assistance (from $12 to $15). Effective July 1, 1961.

11. Increase the $9 million overall ceiling on public assistance grants to Puerto Ricoby $75,000 for fiscal 1961 and by $300,000 for fiscal 1962.

12. Include all States, Puerto Rico, Virgin Islands, District of Columbia and Guam.

Duty-Free Allowance Reduction 
H.R. 6611 — Public Law 87-132, approved August 10, 1961 
As a part of the balance-of-payments program Congress has authorized, for a 2-year period to July 1, 1963, a reduction from $500 to $100 the amount of purchases abroad that a returning resident of the United States may bring in duty free. However, because of the new program to promote tourism in the Virgin Islands, an additional $100 will be permitted tourists returning from the Virgin Islands, thus totaling $200 in this instance.

Federal Unemployment Compensation Extension 
H.R. 4806 — Public Law 87-6, approved March 24, 1961 
To help ease the unemployment problem throughout the country, Congress authorized Federal advances to permit the States to extend unemployment benefits up to an additional 13 weeks for workers who have exhausted their regular benefits during the recession, thus providing an unemployed worker with benefits up to a total of 39 weeks.

These additional payments are to be made available to unemployed workers who have exhausted their benefit rights under a State program after June 30, 1960, and before April 1, 1962.

It provides for financing by advances from the Treasury which will be repaid by a temporary increase in the net Federal unemployment tax of four-tenths of 1 percent on the existing wage base of $3,000, effective for calendar years 1962 and 1963.

The act requires that temporary unemployment compensation be reduced by amounts received as a retirement pension or annuity under a public or private retirement plan provided, or contributed to, by a base period employer. Thus an individual would not be permitted to receive unemployment benefits under the bill, without reduction for retirement benefits, if both types of payments arise by reason of service for the same employer.

The statutory limitation on amounts which may be granted to States for administration of their unemployment security systems is increased to $385 million (from $350 million) for the fiscal year ending June 30, 1961, and to $415 million for the fiscal year ending June 30, 1962.

The agency administering the State law is required to furnish the Secretary of Labor information relating to the personal characteristics, family situation, and employment of background of individuals entitled to temporary extended unemployment compensation under this act (on a sample basis). 

Public Debt Increase 
H.R. 7677 — Public Law 87-69, approved June 30, 1961 
This measure will increase the public debt limit for 1 year from the statutory level of $285 billion, by $13 billion, to $298 billion. Since 1946, when the wartime statutory limit came down from $300 billion to $275 billion, the permanent limit has been increased twice, from $275 billion to $283 billion in 1958, and then to $285 billion in 1959. It has been increased temporarily (for 1 year) five times since 1954. This year's temporary increase of $13 billion compares with 1959's 1-year increase from $285 billion to $295 billion and 1960's increase from $285 billion to $293 billion.

Public Debt — Reduce by Gifts 
H.R. 311 — Public Law 87-58, approved June 27, 1961 
This act specifically authorizes the U.S. Government to accept gifts of money or other property which are to be used to reduce the public debt. It provides for deposit of cash gifts, or proceeds from sales of other gifts, in a special account on the books of the Treasury, and money in this account is to be used to retire obligations of the United States which are a part of the public debt.

Occasionally the U.S. Government receives gifts of money or other property made on the condition that the gift be used to reduce the public debt. However, the Treasury Department has no specific authority to use gifts it receives in this manner and, in the past has been depositing them in the general fund of the Treasury. Thus, this act will permit the gift to be used as the donor designated.

Railroad Unemployment Insurance Extension 
H.R. 5075 — Public Law 87-7, approved March 24, 1961 
Congress unanimously approved additional temporary unemployment benefits to unemployed railroad workers who have after June 30, 1960, and before April 1, 1962, exhausted all their rights to benefits under the Railroad Unemployment Insurance Act.

The maximum number of additional days would be 65 (13 weeks), but these benefits cannot exceed in any individual case 50 percent of the amount of unemployment benefits which could be paid to the unemployed worker in the benefit year.

The act authorizes the Treasury to provide in advance the funds needed to pay for these temporary benefits, estimated to be $24 million. It adds temporarily, for the years 1962 and 1963, one-quarter of 1 percent to the rate of contribution now required of railroad employers to pay for the benefits regularly provided. These advances will be repayable primarily from the additional money contribution.

Small Business Increase 
H.R. 8922 — Public Law 87-198, approved September 5, 1961 
This measure increases by $20 million the amount that the Small Business Administration may commit for loans under their regular basis loan program. This will enable SBA to continue its business loan program without interruption for approximately 1 month. 

Small Business Act Amendments 
H.R. 8762 — Public Law 87-305, approved September 26, 1961 
Increase the Small Business Administration's revolving fund by $105 million to enable the agency to operate its lending programs through fiscal year 1962. The bill also provided for SBA, the Defense Department, and the General Services Administration to develop cooperatively within 90 days a small business subcontracting program. Before the Defense Department and GSA officials promulgate any subcontracting regulations, they must seek the concurrence of SBA. Should SBA not concur, the issue must be referred to the President.

Small Business Investment Act Amendments 
S. 902 — Public Law 87-341, approved October 3, 1961 
The Small Business Investment Act of 1958 was designed to increase the supply of long-term loans and equity capital for small business concerns. It provided incentives for private investors to form small business investment companies, licensed and regulated by the Small Business Administration, to supply venture capital and long-term loans to small businesses. It authorized SBA to make loans to State and local development companies engaged in lending to small businesses.

Amends the Small Business Investment Act of 1958. Major changes in this act are:

1. The amount of subordinated debentures of a small business investment company which the Small Business Administration may purchase was increased from $150,000 to $400,000.

2. The amount of its capital and surplus that a bank may invest in an SBIC was increased from 1 to 2 percent.

3. The amount of section 303 (b) loans which SBA may make to an SBIC was set at $4 million, provided funds are not available from private sources.

4. The amount of funds from any source which an SBIC may furnish to a business concern was fixed at $500,000. A larger amount will require SBA approval.

5. SBA was given authority to institute administrative proceedings to suspend licenses of SBIC's for violation of the act or regulations.

6. SBA's revolving fund SBIC operations was increased by $75 million.


Accelerated Public Works Program 
S. 2965 — Public Law 87-658, approved September 14, 1962 
Enacted into law a bill designed to relieve some of the unemployment problems throughout the 50 States as well as provide for immediate public works programs.

Authorized an immediate $900 million public works program in areas of chronic unemployment to initiate or accelerate projects already authorized or State or local projects for which Federal aid has been previously authorized.

Areas eligible are those designated by the Secretary of Labor as areas of substantial unemployment during at least 9 of the preceding 12 months or designated by the Commerce Secretary as "redevelopment areas" under the Area Redevelopment Act.

Earmarked $300 million of the $900 million to rural areas designated for redevelopment under the Area Redevelopment Act.

Authorized the President to allocate funds appropriated to the heads of the departments and agencies responsible for construction of Federal projects or Federal aid to State or local projects.

Allocated funds to be subject to requirements in the authorizing legislation except provisions limiting allocations of funds among the States and limiting total amount of grants for specified period of time.

Authorized Federal share of cost to be at least 50 percent, and up to 75 percent if the State or local government is not financially capable of raising 50 percent of the funds.

Authorized the President to prescribe rules, regulations, and procedures to assure adequate consideration of the relative needs of eligible areas such as severity and duration of unemployment, the income levels, and the extent of underemployment in eligible areas.

Limited to 10-percent commitments to any one State.

Required that projects to receive aid must be initiated or accelerated within a reasonably short time, must meet an essential public need, must contribute significantly to reducing local unemployment and not be inconsistent with locally approved comprehensive plans, and must be able to be substantially completed within 12 months.

Prohibited use of funds, directly or indirectly, for planning or construction of schools or other educational facilities.

Required that financial assistance provided under this act must produce a net increase in expenditures by the applicant for capital improvement projects approximately equal to the amount of non-Federal funds for the aided project.

In signing the bill into law, President Kennedy stated:

I am today approving S. 2965, a bill which authorizes the appropriation of $900 million to initiate and accelerate Federal public works projects and to provide Federal assistance for a similar expansion of local public works to relieve unemployment and spur economic expansion in those areas of the country which have failed to share fully in the economic gains of the recovery from the 1960-61 recession.

Enactment of this bill is a significant milestone in our effort to strengthen the economy and provide a greater measure of economic security to the unemployed. It is an important companion measure to other efforts already underway. The Area Redevelopment Administration has begun the long difficult task of stimulating the creation of new, permanent jobs in communities which have suffered economic reverses for the longest periods. Through the manpower development and training program, tens of thousands of jobless men and women will soon be learning the skills needed to improve their employment prospects and productivity. Because of expanded distribution of surplus agricultural commodities, thousands of destitute families now have at least the essentials of a decent diet.

I shall shortly transmit to Congress a request for the appropriation of funds necessary to get the program underway. To insure that prompt use is made of the new authority as soon as funds are available, I am today issuing an Executive order designating the Secretary of Commerce as the coordinator of this program. Four principles will guide his efforts:

The funds will be invested in worthwhile and necessary projects designed to make eligible communities better places in which to live and work.

The jobs created will be made available to the maximum feasible extent to the unemployed within the eligible communities.

The program will be administered according to the highest standards of impartiality, economy, and scrupulous honesty.

The program will become operative as quickly as prudent management and respect for the foregoing principles permit.

Federal Reserve Bank Authority — Extension 
S. 3291 — Public Law 87-506, approved June 28, 1962 
Extends to June 30, 1964, the present authority of the Federal Reserve banks to purchase securities directly from the Treasury in amounts not to exceed $5 billion outstanding at any one time.

The Government has had this authority since 1942. It has been used rarely and only for brief periods, and has not been used at all since 1958. The bill is needed, however, to permit direct access to Federal Reserve credit which provides the margin of safety necessary if the Treasury is to fall to exceptionally low levels prior to the large inflow of cash over a tax date. In addition there may be occasions when Treasury financing operations ought to be postponed for a short period because of market disturbances, and direct access to Federal Reserve credit increases the Treasury's elbowroom in such a situation. And in the event of a national emergency which would disrupt financial markets, direct access to Federal Reserve credit would be necessary to continue the functions of Government. 

Foreign Bank Deposits 
H.R. 12080 — Public Law 87-827, approved October 15, 1962 
To help slow the U.S. gold outflow, this act removed for a period of 3 years the Federal Reserve Board's present ceilingwhich ranges up to 4 percent varying with the duration of a depositon interest rates paid by U.S. commercial banks on time deposits of foreign governments, their central banks or other monetary authorities, and international institutions of which the United States is a member. Time deposits are interest-bearing savings deposits left in a bank for a set period.

The intent is to attract funds that might wind up in foreign central banks and that might otherwise be converted into gold out of U.S. stocks.

Public Debt Limit — Temporary Increase 
H.R. 10050 — Public Law 87-414, approved March 13, 1962 
Enacted a $2 billion temporary increase in the public debt limitlifting the ceiling from $298 to $300 billionto June 30, 1962.

Public Debt Limit 
H.R. 11990 — Public Law 87-512, approved July 1, 1962 
Provides for a temporary debt limit of $308 billion for the period from July 1, 1962, through March 31, 1963; a temporary limit of $305 billion from April 1, 1963, through June 24, 1963, and a temporary limit of $300 billion through the remainder of the fiscal year 1963.

Current statutory debt limitation is $300 billion. This consists of a permanent limit of $285 billion and a $15 billion temporary additional limit which expires as of June 30, 1962.

Reason for need.The Treasury Department expects a seasonal budget deficit reaching a peak of $11.2 billion on December 15 of this year, just before the receipt of large tax payments.

The Department has estimated the current fiscal year will end with a debt of about $294 billion. Adding the customary $3 billion allowance for flexibility to this figure gives a total of about $297 billion, or about $3 billion less than the current statutory debt limitation of $300 billion.

This $3 billion, plus the additional $8 billion increase now asked in the statutory limitation, would provide the $11.2 billion seasonal deficit. 

Small Business Act Amendment 
S. 2970 — Public Law 87-550, approved July 25, 1962 
Increased the Small Business Administration's revolving fund to a total of $1.66 billion. Of this, $1,325 million put into a single pool for regular business loans and disaster loans and $341 million will be used for expanding the programs provided by the Small Business Administration Act of 1958.

Also changed method of computing the interest that SBA pays Treasury for the funds it receives from Treasury for its lending programs. The Secretary, instead of setting a flat interest rate, will compute in June of each year a weighted average interest rate taking into consideration prior annual rates.

In pooling the funds for business and disaster loans, Congress was mindful of the fact that so many business loans are made that there is danger of running low on disaster funds. They were assured by the SBA that a minimum of $14 million would be kept in reserve for this possibility.

Authorizes the SBA to make loans, either directly or in cooperation with banks or other lenders through agreements to participate on an immediate or deferred basis, to assist any firm to adjust to changed economic conditions resulting from increased competition from imported articles but only if an adjustment proposal of a firm has been certified by Secretary of Commerce under the Trade Expansion Act of 1962; the Secretary has referred the proposal to the Administration under that act and the loan would provide part or all of the financial assistance necessary to carry out the proposal; and the Secretary's certification in force at the time the Administration makes the loan. 

War Claims — General Aniline 
H.R. 7283 — Public Law 87-846, approved October 22, 1962 
Enacted an omnibus war claim bill which permitted the Government to sell General Aniline & Film Corp., seized during World War II, as German owned. Government now has a 93-percent stock interest in the company.

This legislation was required because Federal seizure has been challenged by a Swiss holding company, which contends to be the true prewar owner. If the claim should be upheld in the courts, proceeds from the sale of the Government stockestimated at $150 millionwill be used to compensate the Swiss company.

In addition to authorizing the sale of General Aniline, it authorized compensation to U.S. citizens, or their heirs who lost property in Europe, the Far East, or at sea during World War II, or who suffered death, disability, or property loss on civilian passenger vessels attacked before the United States entered the war. Funds for these general war claims will be made available from sales of alien property seized in this country. This bill authorizes an immediate transfer of $100 million. Full payment must be made in cases of death or injury and to small businesses as defined in the Small Business Act. Small Business Act definition is a manufacturing concern with no more than 250 employees, a wholesale concern with annual sales under $5 million, or a retail or service concern with annual sales or receipts under $1 million.

Should there be a balance remaining in the war claims fund, consideration will be given for payment for losses as late as 1951 by residents of Iron Curtain countries who have since become U.S. citizens; for World War II losses by any foreigner who has since been naturalized in this country; for Americans who were taken prisoner while serving in the armed forces of any country; and for Americans who were taken prisoner while serving in the armed forces of any country allied with the United States in World War II.

Authorized returning to former owners the estates, trusts, insurance policies, annuities, and pensions seized by the United States during the war.

Authorized payment of $500,000 to the Jewish Restitution Successor Organization to be used for rehabilitation of World War II persecutees who have since settled in this country. Funds would be made available from sale of property seized in this country from residents of enemy countries who were killed and persecuted during the war and left no heirs.

Provided 18 months for claims to be filed. Foreign Claims Commission must complete action within a 4-year period.

Provided for return to persons entitled copyrights or rights or interests arising prevesting contracts relating to copyrights (91 days following enactment).


Additional Mint Facilities 
S. 874 — Public Law 88-102, approved August 20, 1963 
Authorized a 10-year program of construction and equipping of buildings in connection with the Bureau of the Mint operations and limits total expenditures to $30 million.

Area Redevelopment Act Amendments 
S. 1163 — Passed Senate June 26; House Calendar 
Amending the Area Redevelopment Act of 1961 to provide $455 million in additional Federal funds and to

Clarify language in the act in regard to eligibility for designation of Indian reservations to make it clear that not only Federal but also State Indian reservations are eligible for designation as redevelopment areas.

Increase the amount authorized to be outstanding for industrial or commercial loans from $100 to $250 million for projects in urban areas.

Increase the amount authorized to be outstanding for industrial or commercial loans from $100 to $250 million for projects in rural areas.

Increase the amount authorized to be outstanding for public facility loans from $100 to $150 million.

Increase the authorization for appropriations for public facility grants from $75 to $175 million.

Permit the required State or local 10-percent contribution for industrial or commercial projects to be repaid concurrently with financial assistance extended by the Area Redevelopment Administration.

Increase the annual authorization for appropriations for technical assistance from $4.5 to $10 million.

Require that construction workers on any private project financed by ARA be paid prevailing wages as required by the Davis-Bacon Act.

Permit funds appropriated for the area redevelopment program to remain available until expended; provide that any funds appropriated for business or public facility loans shall be deposited in the area redevelopment fund; and require payment of interest by the fund to the Treasury on any such appropriated funds used for business and public facility loans.

Eliminate requirement that cities of less than 150,000 must pay three-fourths rather than two-thirds of the cost of urban renewal projects.

Designate as a redevelopment area any area within the United States where substantial unemployment exists and it has been certified that there are at least 50,000 Cuban refugees.

Bar assistance to any foreign concern to establish plants or facilities or to establish or expand plants or facilities in the United States.

Permit designation of redevelopment areas by contiguous groupings.

Attorneys' Fees — Bankruptcy 
H.R. 2833 — Public Law 88-17, approved May 8, 1963 
In bankruptcy proceedings, permits courts on their own motion to examine into the reasonableness of attorneys' fees. Also provides that if an agreement is made, either before or after filing, to pay legal fees after filing, the court may on its own motion or on petition of the bankrupt made prior to discharge, examine into the reasonableness of such fees. Fees are to be held valid only to the extent of a reasonable, fair charge for the services. Anything over a reasonable fee will be canceled and if payment has been made, the excess will be returned to the bankrupt.

Under existing 60d of the Bankruptcy Act, the court can examine into the reasonableness of attorneys' fees only on petition of the trustee or any creditor. Amounts determined in excess may then be recovered by the trustee for the benefit of the estate. 

Cadmium Disposal from Stockpile 
S. 1089 — Public Law 88-8, approved April 9, 1963 
Authorized the General Services Administration to dispose of approximately 2 million pounds of cadmium from the national stockpile, and permits the disposal to begin upon enactment of this bill instead of waiting until 6 months after October 20, 1962, the date of publication of the disposal notice in the Federal Register (statutory requirement).

The initial offering for sale will be for approximately 300,000 pounds with subsequent offerings scheduled at least 60 days apart. Small lot sales will permit small business to participate in the purchase of cadmium. Cadmium is used chiefly in electroplating, pigments and chemicals, alloys, and storage batteries.

Chicory — Duty Allowance 
H.R. 2827 — Public Law 88-49, approved June 29, 1963 
Extends for 3 years, to June 30, 1966, existing suspension of duty on crude chicory except endive, and continued for the same period the statutory rate of duty of 2 cents a pound for chicory, ground or otherwise prepared.

Cork Insulation 
H.R. 2053 — Public Law 88-32, approved May 29, 1963 
Authorized a temporary (3-year) suspension of import duty on corkboard insulation.

Dependent Children — Foster Care 
H.R. 2651 — Public Law 88-48, approved June 29, 1963 
This bill extended for 1 year to June 30, 1964, the provision of the Public Welfare Amendments of 1962 which permits the responsibility for placement and foster care of dependent children under the program of aid to needy families with dependent children to be exercised by a public agency other than the one which regularly administers this program.

Under the permanent provisions of existing law, Federal matching is made available to certain children placed under foster care pursuant to court order. The 1962 legislation provided an exception to the requirement that the responsibility for placement and care must reside solely with the State or local agency administering the title IV program to take care of the situation in a few States where it has been the practice for other public agencies, particularly juvenile courts, to be responsible for arranging placement and providing for supervision of children who the courts have decided should live in homes other than those of their own families.

Deposit of Funds of Bankrupts' Estates 
H.R. 2849 — Public Law 88-16, approved May 8, 1963 
Amends the Bankruptcy Act to authorize the bankruptcy court to permit trustees to deposit funds of the bankrupt estates in interest-bearing accounts, such as time deposit accounts, savings accounts, and the like so that some increment will accrue to these estates.

At present section 47a (2) requires a trustee in bankruptcy to deposit all money received by him in "designated depositories," and section 61 provides that the courts of bankruptcy "shall designate, by order, banking institutions as depositories for the money of estates***." These provisions have been interpreted to require the trustee to deposit the money of a bankrupt's estate in demand deposit accounts; thus, unless the creditors consent, the trustee could not make deposits in interest-bearing accounts. 

Duty-Free Allowance 
H.R. 6791 — Public Law 88-53, approved June 29, 1963 
Extended for 2 years, to June 30, 1965, the $100 exemption from import duties allowed on foreign goods brought back from outside the United States.

Retained the present ceiling of $200 for goods from the Virgin Islands through March 31, 1964, when the exemption will be reduced to $100. 

Flood Disaster Victims — Study 
S. 2032 — Passed Senate November 8; pending in House Banking and Currency Committee 
Authorizes the Housing and Home Finance Administrator to make a study of alternative programs to help provide financial assistance to victims of future flood disasters, including the present and other possible Federal flood insurance programs. Report to be made to Congress within 9 months from enactment or the appropriation of funds, whichever is later.

The report must include an indication of the feasibility of each program studied, an estimate of its cost to the Federal Government and to property owners on the basis of reasonable assumptions, and the legal authority for State financial participation. 

Heptanoic Acid 
H.R. 5712 — Public Law 88-93, approved August 8, 1963 
Continues the existing suspension of the import duty on heptanoic acid for 3 years. 

Istle or Tampico Fiber 
S. 6011 — Public Law 88-90, approved August 8, 1963 
Continues to September 5, 1966, the existing suspension of duty on dressed or manufactured istle or Tampico fiber. 

Lumber — Tariff 
S. 1032 — Public Law 88-103, approved August 22, 1963 
Excludes cargo which is lumber from certain tariff-filing requirements under the Shipping Act of 1916.

This bill amends section 18 (b) (1) of the Shipping Act, 1916, to exempt lumber from the requirement that rates and charges for transportation in both directions between U.S. ports and foreign ports be filed with the Federal Maritime Commission and that increases in such rates and charges shall not become effective until 30 days after filing the increased rates and charges. At present these filing requirements apply to all cargo except cargo loaded and carried in bulk without mark or count.

This will permit shippers of lumber to secure rates for transportation of lumber in foreign trade that are more competitive with those paid by foreign producers. 

Metal Scrap — Duty Suspension 
H.R. 4174 — Public Law 88-50, approved June 29, 1963 
Extends to June 30, 1964, the suspension of duties on metal scrap including such principal types of scrap as iron and steel, aluminum, magnesium, nickel, and nickel alloys.

National Service Corps 
S. 1321 — Passed Senate August 14; pending in House Education and Labor Committee 
Establishes a National Service Corps to strengthen community service programs in the United States. Life of the Corps is limited to 2 years. Authorizes appropriation of $5 million for fiscal year 1964 and $10 million for fiscal year 1965. Authorizes the President to appoint a Director for confirmation by the Senate at $20,000 a year.

The Corps will work with the health and education needs of migratory farm families, Indians living on reservations, and rural and urban slums and depressed areas; the training and education of youth, particularly school dropouts; and the care and rehabilitation of the elderly, the disabled, the mentally ill, and the mentally retarded.

The bill requires a request from the Governor of a State to the President before implementation of a program in that State. Specifies that projects should be undertaken only on local invitation and in cooperation with local governmental and other agencies and, if possible, should be supervised by those agencies.

Specifies that no project will displace regular workers or duplicate or replace an existing service in the same locality.

Limits the number of corpsmen to 1,000 during fiscal year 1964, and 5,000 thereafter. Authorizes payment of $75 a month plus minimal living allowances. Applicants must be of good moral character and enrollees are limited to those of American citizenship and Cuban refugees.

Corpsmen will be made available to any department or agency of the United States or of any State or political subdivision, the District of Columbia, and any private person or organization pursuant to a contract or agreement which will not extend at any time for more than 2 years.

Authorizes the President to establish a National Service Corps Advisory Council of 25 persons representative of agencies, public and private organizations, and individuals interested in Corps programs and objectives to advise and consult with the President on Corps projects and policies.

Authorizes the employment of experts and consultants with compensation at rates not exceeding $75 a day. However, only 2 percent of the funds authorized or appropriated may be used for this purpose.

Requires the President to submit an annual report to Congress each fiscal year. 

Polished Sheets and Plates of Iron or Steel 
H.R. 3674 — Public Law 88-86, approved August 5, 1963 
This bill eliminates an unintended tariff classification anomaly in Tariff Act of 1930 that permits polished stainless steel sheets to enter the United States as a lesser duty than is applicable to stainless steel sheets that are unpolished. 

Public Debt Ceiling 
H.R. 6009 — Public Law 88-30, approved May 29, 1963 
Provides a temporary debt limit of $307 billion for the remainder of fiscal 1963 and $309 billion for the first 2 months of fiscal 1964. 

H.R. 7824 — Public Law 88-106, approved August 27, 1963 
Extends to November 30, 1963, the temporary debt limitation of $309 billion. 

H.R. 8969 — Public Law 88-187, approved November 26, 1963 
Extends the present temporary debt limit of $309 billion for the remainder of this fiscal year but, also, provides an additional leeway of $6 billion to be available during the year for seasonal variations. The $315 billion limitation expires June 29, 1964, thus reducing the ceiling to the present $309 billion. 

Public Works Planning 
Senate Joint Resolution 129. — Passed Senate November 19; pending in House Banking and Currency Committee 
Authorizes an additional $10 million for Housing and Home Finance Agency's program of advances for public works planning.

This additional authorization will be provided by increasing from $58 to $68 million the statutory limits on the amounts which may be appropriated to the revolving fund from which advances are made.

The program of advances for public works planning was enacted to encourage municipalities and other public agencies to prepare and maintain a current and adequate reserve of planned public works which could readily be placed under construction, and to promote economy and efficiency in planning and building public works.

Eligible applicants include States, municipalities, and other public agencies of the States, including regional or metropolitan area authorities provided they have the legal authority to finance and construct the proposed facilities within a reasonable period of time. However, the public work for which the advance is requested must conform to any existing overall State, local, or regional plan, and must be checked with any Federal agency whose clearance is required.

The agreement between the Government and the applicant requires the repayment of the advance when construction begins and authorizes repayment of a proportionate amount if only a portion of the project is initiated. Advances are interest free, but interest is charged on delinquent payments at a 4-percent rate.

Advances outstanding to public agencies in any one State are limited to not more than 12 ½ percent of the aggregate amount authorized to be appropriated to the revolving fund for the program.

Silver Purchase Repeal 
H.R. 5389 — Public Law 88-36, approved June 4, 1963 
This bill repeals the Silver Purchase Act of 1934, section 4 of the act of July 6, 1939, and the act of July 31, 1946, which required the Treasury Department to purchase newly mined domestic silver at 90 ½ cents an ounce and authorized the Department to sell at the same price.

Continues the requirement that the Treasury must keep a reserve of silver to match outstanding silver certificates and must supply silver in exchange for silver certificates on the holder's demand. Authorizes the issuance of $1 and $2 Federal Reserve notes to meet the needs of business and the public.

Requires that the Secretary of Treasury not dispose of any free silver unless the market price of the silver exceeds its monetary value of $1.29-plus an ounce, except that any free silver could be sold to other departments and agencies of the Government or used for the coinage of standard silver dollars and subsidiary silver coins.

Repeals the tax on transfers of silver bullion after the date of enactment. 

Small Business Act Amendments 
S. 1309 — Passed Senate November 21; pending in House Banking and Currency Committee 
Increased by $34.3 million the authorization for the small business investment fund bringing the total authorization under SBA's revolving fund to $1,700,300,000. Of the $34.3 million, it was estimated that $15.9 million would be allocated to operate the business investment fund under existing law and $18.4 million allocated to cover increased costs under the small business investment company program and the lending program to State and local development companies through fiscal year 1964.

Broadened the causal basis of SBA's authority to make loans from its disaster fund to cover all natural disasters and provided that criminal charges could be brought against anyone who conceals, removes, disposes of or converts to his or someone else's use any property mortgaged to SBA as a security for a loan. Under existing law loans were limited to small businesses suffering losses through major drought or excessive rainfall disasters only.

Bill also provides that loans be extended to firms that have suffered substantial economic injury as a result of the inability of the firm to process or market a product for human consumption because of disease or toxicity occurring in the product through natural or undetermined causes.

Small Business Investment Act Amendments 
S. 298 — Passed Senate November 21; House Calendar 
Liberalizes the Small Business Investment Act to encourage increased capitalization of SBIC's by raising the amount of capital that SBA may invest in an SBIC, on a matching basis, from $400,000 to $700,000, and increase the time within which such sale may be made to 5 years from the date of licensing of the date of the enactment of these amendments, whichever is later.

Gives SBA specific statutory authority for the standby program under which SBA stands behind loans made under the act by private banks to SBIC's. This section also increases the maximum amount of loans from $4 to $5 million.

Repeals an amendment which limited to $500,000 the amount which an SBIC could provide to a single small business concern.

Permits SBIC's to deposit idle funds in savings and loan associations, the accounts of which are insured by the FSLIC.

Directs the SBA to promulgate regulations for the purpose of controlling conflicts of interests and require that such regulations include provisions for public disclosures in cases involving conflicts of interest. 

Tanning Extracts 
H.R. 2675 — Public Law 88-92, approved August 8, 1963 
Extends for an additional 3 years the period during which certain tanning extracts may be imported free of duty, and the period during which extracts of hemlock or eucalyptus suitable for use for tanning may be imported free of duty. 

Uniform Commercial Code 
H.R. 5338 — Public Law 88243, approved December 30, 1963 
Adopts the Uniform Commercial Code, approved by the American Bar Association, for the District of Columbia.

Urban Construction 
S. 626 — Passed Senate June 24; pending in House Public Works Committee 
Authorized a 5-percent (from 10 to 15 percent) increase on the limitation on payments for construction engineering for Federal aid primary, secondary, and urban projects.

Present law provides for a maximum Federal participation in engineering construction costs of 10 percent of the total estimated cost of a project financed with Federal aid primary, secondary, or urban funds, after excluding from such total estimated cost the estimated costs of rights-of-way, preliminary engineering, and construction engineering.

Since the proposed amendment applies only to the Federal share of payments, the maximum net benefit to any State, with reference to the affected projects, would be a 2 ½-percent transfer to construction engineering costs of Federal funds which would otherwise be used for the Federal share of actual construction.

Youth Conservation Corps 
S.1 — Passed Senate April 10, 1963; H.R. 5131—House Calendar 
Authorized a 5-year, $100 million (fiscal year 1964) program to employ and train jobless youngsters between the ages of 16 and 22 in a Youth Conservation Corps and a Hometown Service Corps.

Major provisions of S. 1 are:

Title I — Youth Conservation Corps 
Establishes a Youth Conservation Corps within the Department of Labor, headed by a Director appointed by the President and confirmed by the Senate at $20,000 a year.

Purpose of the Corps is to provide on-the-job training for young unemployed men aged 16 to 21 together with supplemental training and education programs to increase their opportunities for permanent employment. Primary work would be conserving our natural resources. Enrollees must be permanent residents of the United States.

Authorizes the Secretary of Labor to establish standards of safety, health, and conduct for enrollees, and to enter into agreements with the Secretary of HEW for provision for such services. The Secretary is also authorized to enter into agreements with Federal and State agencies for conservation and recreational area development.

Establishes a four-member Interdepartmental Committee on the Youth Conservation Corps composed of: Secretary of Labor, or his designee, as chairman, a representative of Department of HEW, a representative of Department of Agriculture, and a representative of the Department of the Interior. The committee will consult with and advise the Secretary on all operational phases of the Corps.

Establishes in the Department of Labor a National Advisory Council on the Youth Conservation Corps composed of the Secretary, or his designee, as chairman, and up to 14 additional members appointed by the Secretary without regard to civil service laws. The members will represent the fields of conservation, agriculture, education, training, youth employment, labor, management, and the public in general. The Council is to review the operations of the Corps at the request of the Secretary.

Enrollees in the Corps cannot exceed 15,000 during the first fiscal year and during the next 4 years the number will depend on congressional appropriations. Enrollment will be for not less than 6 months and, if permitted by the Secretary, an individual may re-enroll, but his total enrollment cannot exceed 2 years. Fifty percent of the enrollment allocation will be made on the basis of the comparative populations within the male 16 to 21 age group. The remaining 50 percent will be distributed among the States by the Secretary based on the State's share of national unemployment.

Enrollees will be paid $60 a month for the first enrollment and an additional $5 a month for each subsequent enrollment; up to an additional $10 a month may be paid on the basis of assigned leadership responsibilities or special skills.

Title II —  State and Community Youth Employment Program 
This program has the same purpose for the same age group as title I. The States, if they choose, may establish conservation camps on State lands to improve natural resources or recreational facilities. In addition, work opportunities in improving educational, recreational, or other community assets; the elimination of blight; or assisting in hospitals, libraries, playgrounds, and welfare activities may be provided under the direction of the States or local communities.

Enrollees may live either in State conservation camps away from home or may live at home. Provides for educational and vocational training, evaluation, testing counseling, and guidance.

Title II will be administered by the Secretary of Labor but immediate supervision and control will be in the hands of States and communities. During the first year the program will be limited to 60,000 full-time enrollees, and the remaining 4 years will be dependent on congressional appropriations.

Authorizes $50 million for the first year, and the 4 remaining years will be determined by Congress. Costs will be shared half by the Federal Government and half by the State or community, except in cases of severe financial hardship where, in the judgment of the Secretary of Labor, a lower cost-sharing ratio may be required to enable the State or community to participate. In no case, however, may the State or local share be less than 25 percentbut the State or local contributions may be made in kind as well as cash.

Establishes in the Department of Labor a National Advisory Council on State and Community Youth Employment Programs composed of the Secretary or his designee, as chairman, and nine members appointed by the Secretary who are recognized authorities in professional or technical fields related to the employment of youth.

Under both titles, the Secretary is required to submit annual reports to the President for transmittal to Congress.

Participants under both titles will be from the 50 States, District of Columbia, Puerto Rico, Virgin Islands, Guam, and American Samoa.