JANUARY 1966 ECONOMIC REPORT OF
THE PRESIDENT

89-2

59-311 O

HEARINGS

BEFORE THE

JOINT ECONOMIC COMMITTEE

CONGRESS OF THE UNITED STATES

EIGHTY-NINTH CONGRESS

For sale by the Superintendent of Documents, U.S. Government Printing Office

Washington, D.C., 20402 - Price 50 cents

DIVISION

CONTENTS

STATEMENTS

FEBRUARY 1, 1966

Ackley, Gardner, Chairman, Council of Economic Advisers, accompanied

by Arthur M. Okun, member, and James Duesenberry, member desig-

nate...

FEBRUARY 2, 1966

Schultze, Charles L., Director, Bureau of the Budget, accompanied by

Samuel M. Cohn, Assistant Director for Budget Review, and William

B. Ross, Chief, Fiscal Analysis___.

EXHIBITS AND ADDITIONAL INFORMATION

Bureau of the Budget:

Principal Federal statistical programs (Special Analysis K) -

Chart submitted in response to Congressman Curtis' request: “Out-

standing direct loans of Federal credit programs, fiscal years 1961-

67"

Information on deferred defense programs requested by Senator

Jordan..

Page

4

105

119

136

137

Information on expenditure reduction in the Department of Defense

requested by Senator Jordan___.

141

Table: "Direct sales and participation sales of loans by major Federal

credit programs".

143

Information on SBA budget requested by Senator Sparkman..

Information supplied in response to Representative Reuss' questions:

Systems analysis and the manned lunar landing-

Wage-price guideposts bill..

Preenactment of tax increase....

Answers to questions submitted by Senator Javits.

Council of Economic Advisers:

Answer to Chairman Patman's question regarding interest paid on

the Federal Reserve portfolio -

Information on industries with above average productivity increases

requested by Representative Reuss_

Table: "Industries with above average rates of productivity

growth"

Information on SBA loans requested by Senator Sparkman
Information on the change in average farm size requested by Senator
Jordan__.

18

30

31

36

39

Answer to Representative Griffiths' question regarding discrimination
in employment and potential GNP

41

Information on family formation and new housing starts requested by

Senator Proxmire.......

54

Tables:

"Annual change in number of households and annual number

of nonfarm housing starts, 1950–65"-

"Rental vacancy rates".

55

55

Information on escalation clauses in major collective bargaining
agreements requested by Senator Miller..

58

Council of Economic Advisers-Continued

Information on changes in the minimum wage requested by Senator

Miller

Answer to Chairman Patman's question regarding the committee's

study, "The Federal Reserve Portfolio".

Information on the level of defense expenditures as a percent of GNP

requested by Senator Proxmire..

Table: "Defense impact in relation to GNP, calendar years

1950-66".

Answer to Senator Proxmire's question regarding income of farmers

with gross sales in excess of $10,000---

Information on debt and tax financing requested by Representative

Curtis..

Information on administration proposals to meet increased demand
for medical services requested by Senator Proxmire.
Information on job vacancy statistics in foreign countries requested
by Senator Proxmire..

Information supplied in response to Representative Reuss' questions:

Impact of interest payments on various income groups

Table: "Net worth of consumers within specified groups,

December 31, 1962"-

Alternatives to interest rate increases in combating inflation

Answers to additional questions submitted by Representative Reuss--

Answers to questions submitted by Mr. Knowles on behalf of the

committee as a whole.

Curtis, Representative Thomas B.:

Information submitted by Council of Economic Advisers on debt and

tax financing....

Table submitted by Bureau of the Budget: "Outstanding direct loans

of Federal credit programs fiscal years 1961-67".

Griffiths, Representative Martha W.:

Submission of requested information by the Council of Economic

Advisers on discrimination in employment and potential GNP....

Javits, Senator Jacob K.:

Opening statement for the minority__

Questions submitted to the Council of Economic Advisers and replies

thereto.___

Questions submitted to the Bureau of the Budget and replies thereto..

Jordan, Senator Len B.:

Submission of requested information by the Council of Economic

Advisers regarding the change in average farm size.

39

Submission of requested information by the Bureau of the Budget on

deferred defense programs

137

141

Submission of requested information by the Bureau of the Budget
regarding expenditure reduction in the Department of Defense-
Knowles, James W., executive director, Joint Economic Committee:
Questions submitted on behalf of the Committee as a whole and
replies thereto...

Miller, Senator Jack:

Submission of requested information by the Council of Economic
Advisers regarding escalation clauses in major collective bargaining
agreements.

Additional information supplied by the Council of Economic Advisers
regarding changes in the minimum wage___

Patman, Chairman Wright:

Opening statement__

Agenda for the hearings-

Submission of requested statement by the Council of Economic
Advisers regarding interest paid on the Federal Reserve portfolio..

Letter sent to agencies requesting an opinion on the legality of cer-

tificates of deposit and promissory notes.

Replies received:

James J. Saxon, Comptroller of the Currency.

William McChesney Martin, Jr., Chairman, Federal Reserve

Board...

K. A. Randall, Chairman, Federal Deposit Insurance Cor-
poration___

Norbert A. Schlei, Assistant Attorney General, Department

of Justice__--

Patman, Chairman Wright-Continued

Submission of requested statement by the Council of Economic
Advisers on the Committee's study: "The Federal Reserve Port-
folio"

Proxmire, Senator William:

Submission of requested information by the Council of Economic

Advisers on family formation and new housing starts.---

Tables:

"Annual change in number of households and annual number

of nonfarm housing starts, 1950–65"..

"Rental vacancy rates".

Reuss, Representative Henry S.:

Submission of requested information by the Council of Economic

Advisers regarding industries with above average productivity

increases

Table: "Industries with above average rates of productivity

growth".

Submission of requested statements by the Council of Economic

Advisers regarding—

Impact of interest payments on various income groups.

Table: "Net worth of consumers within specified groups,

December 31, 1962”.

Alternatives to interest rate increases in combating inflation__.
Questions submitted to the Council of Economic Advisers and replies
thereto....

Submission of requested statements by the Bureau of the Budget

regarding-

Systems analysis and the manned lunar landing__

Analysis of the supersonic transport development program

Urban transportation research..

Wage-price guideposts bill..

Preenactment of tax increase_

Sparkman, Senator John:

Submission of requested information by the Council of Economic

Advisers on SBA loans__

Table: "Direct sales and participation sales of loans by major Federal
credit programs".

Submission of requested information by the Bureau of the Budget on

the SBA budget---.