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2298. Prohibiting unauthorized use of name or insignia of 4-H clubs.

2299. Relief for persons erroneously convicted in courts of United States.

2300. Bridge across Columbia River at Astoria, Oreg.

2301. Additions to Sequoia National Forest.

23 Title to railroad grant lands in Kern County, Calif., for Summit Lime Co.

2305. Amending law relative to brewers' bonds.

2306. Amending settlement of war claims act of 1928.

2307. Regulation of over-the-counter markets.

2308. Interest rate on Federal land-bank and Land Bank Commissioner's loans.

2309. Extension of foreign air-mail contracts.

2310. Amend meat inspection act rel. to farmers and retail butchers and dealers.

2311. Amend agricultural adjustment act of 1938 rel. to cotton and tobacco.

2312. Manner of securing written consent for reconcentration of cotton.

2313. Exempt from cancelation desert-land entries in Riverside County, Calif.

2314. Sick and vacation leave with pay for postal substitutes.

2315. Amend 2d liberty bond act rel. to outstanding Government securities.

2316. Extension of 2-cent postal rate on 1st-class mail matter.

2317. Appropriations for work relief, etc.

2318. Establishing composition of Navy.

2320. Purchasing and distributing fishery products.

2321. Settlement of ocean mail contract claims.

2322. Subordination of liens held by Maritime Comn. to loans by R. F. C.

2323. Eighth American Scientific Congress to be held in U. S. in 1940.

2324. Additional grant to States for unemployment compensation administration,

2326. To adjust overtime and night work pay for postal employees.

2327. Requisitioning of vessels in time of emergency.

2328. Secretary of Navy to proceed with construction of certain public works.

2329. Legislative establishment appropriation bill, 1939.

2330. Revenue bill of 1938.

2340. Claims of Shoshone and Bannock Indians of Fort Hall Reservation.

2341. Transfer to credit of Chippewa Indians proceeds of certain judgment.

2343. Bridge across Mississippi River at or near Cairo, Ill.

2344. Bridge across Wabash River at or near New Harmony, Ind.

2345. Bridge across St. Louis River between Duluth, Minn., and Superior, Wis.

2346. Bridge Mississippi River between Friar Point, Miss., and Helena, Ark.

2347. Bridge across Grant Pass between Cedar Point and Dauphin Island, Ala.

2348. Bridge across Missouri River at or near Rulo, Nebr.

2349. Bridge across Missouri River at or near Niobrara, Nebr.

2350. Bridge across Coosa River at or near Gilberts Ferry, Ala.

2351. Loans to railroads by Reconstruction Finance Corporation.

2352. Term of district court at Newport News, Va.

2353. Construction of public works on rivers and harbors for flood control.

2358. Amend laws rel. to distributing public documents to depository libraries.

2360. Providing for appointment of additional judges for certain U. S. courts.

2362. Operation by U. 3. of steamships of Baltimore Mail Steamship Co.

2363. Addition of lands to Black Hills National Forest.

2364. Permitting retired Marine Corps officers, etc., to hold office under U. S.

2365. Relief of certain officers of Navy and Marine Corps.

2366. Employment of honcrary retired officers of Naval Reserve.

2367. Increase number of midshipmen at Naval Academy appointed at large.

2368. Relief of Spanish War sailors, etc., discharged because of minority.

2369. Allowing possession of migratory game birds lawfully taken.

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March 23, 1938.-Committed to the Committee of the Whole House on the

state of the Union and ordered to be printed

Mr. SNYDER of Pennsylvania, from the Committee on Appropria

tions, submitted the following

REPORT

[To accompany H. R. 9995)

The Committee on Appropriations submit the following report in explanation of the accompanying bill making appropriations for the Military Establishment for the fiscal year ending June 30, 1939, which embraces all regular annual appropriations for the War Department at Washington, the Regular Army, the National Guard, the Organized Reserves, and other civilian components.

ESTIMATES

The Budget estimates of appropriations for the objects embraced by the bill for the fiscal year 1939 will be found in detail on pages 141 and 645 to 693, inclusive, of the Budget, and in House Document No. 519 of the present session.

There follows a comparison of the total of the Budget estimates and the total of the appropriations recommended by the committee for 1939 with the total of the current appropriations:

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The foregoing excludes one trust fund item, carried under the permanent annual appropriation head, amounting to $1,000,000.

The details of the preceding summation, by appropriation titles, are set out in the table commencing on page 24 hereof.

The total amount of money carried by the accompanying bill is $447,808,555. That sum exceeds the total amount carried in the current Military Establishment Appropriation Act by $32,545,401, and is $5,480,280 less than the sum of the amounts proposed in the regular Budget and in a subsequent submission (H. Doc. 519).

The following indicates the mode of accomplishing the net reduction in the Budget proposals of $5,480,280: Reductions in consequence of Reappropriations.

$3,670, 476 Substitutions of contract authorizations.

4, 170, 200 Committee's determination in divers directions. 1, 173, 977

Total.--
Increases proposed by the committee.

9,014, 653 3, 534, 373

Net reduction --

5, 480, 280 Discounting reappropriations, the net reduction from an availability standpoint is $1,809,804.

The amount proposed to be reappropriated is composed entirely of portions of 1938 appropriations which have been withheld from obligation by direction of the President. The total amount so frozen, according to most recent figures, is $5,061,620. Details, as of January 31, 1938, appear on pages 2 and 3 of the hearings. To the extent employed ($3,670,476), while they augment the direct appropriations proposed by the committee, to the same extent the Congress avoids charging up to itself twice the appropriation of funds for like objects.

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BUDGET INCREASES In the regular budget, upon the basis of appropriation or subappropriation totals, there is a net increase of $21,145,681, and a gross increase of $24,535,543. A supplemental submission raises both amounts by $16,880,000.

Of the gross increase in the regular budget, approximately $18,000,000 may be laid at the door of aviation, because of the fact that the authorized quota of airplanes is rapidly approaching fulfillment. Besides an increase of $11,938,566 directly under the Air Corps, additional amounts in excess of a total of $6,000,000 are estimated under other heads, including the National Guard and Organized Reserves, directly on account of or incident to aviation. The remainder of the gross increase of $24,535,543, namely, $6,500,000 using round figures, divides approximately as follows, increased amounts on account of aviation being omitted:

$2,800,000 for pay of the Army.
$250,000 for travel of the Army.
$2,400,000 for objects under the Quartermaster Corps.
$ 138,000 for Engineer Service, Army.
$810,000 for seacoast defenses.

$200,000 for National Guard. The increase occasioned by the supplemental submission divides as follows: Antiaircraft material..

$8,800,000 Aids to manufacture

6,080, 000 Deficiencies in ammunition.

2,000,000

Total..

16, 880, 000 Apart from aviation, it is very evident from the foregoing that the regular budget is devoid of any unusual demands. Except for 50 lieutenants to be commissioned in consequence of the Thomason Act, regular personnel remains practically stationary. There are additions to meet normal and annually recurring increases in consequence of law governing the pay of personnel, and there is an increase, pursuant to law, of $644,415 to compensate for additional grades and ratings for enlisted personnel. Provision is made for the completion of some and going forward with other matériel programs, and there is included $658,141 for augmentation of seacoast defenses. Also, funds are included to enable the National Guard to expand personnel from 200,000 to 205,000, effective after March 31, 1939. This expansion is provided for in the current appropriation act, but will noi be made because the requisite funds have been administratively withheld from obligation.

An analysis by the Chief of Staff of the regular budget estimates appears in considerable detail on pages 23 to 31 of the hearings.

SUPPLEMENTAL ESTIMATE

The following is quoted from the message of the President of the United States to the Congress on January 28, 1938 (H. Doc. 510):

"As Commander in Chief of the Army and Navy of the United States it is my constitutional duty to report to the Congress that our national defense is, in the light of the increasing armaments of other nations, inadequate for purposes of national security and requires increase for that reason."

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"Specifically and solely because of the piling up of additional land and sea armaments in other countries, in such manner as to involve a threat to world peace and security, I make the following recommendations to the Congress:

“(1) That there be authorized for the Army of the United States additions to antiaircraft matèriel in the sum of $8,800,000 and that of this sum $6,800,000 be appropriated for the fiscal year 1939.

“(2) That there be authorized and appropriated for the better establishment of an Enlisted Reserve for the Army the sum of $450,000.

“(3) That there be authorized the expenditure of $6,080,000 for the manufacture of gages, dies, and other aids to manufacture of Army matériel, the sum of $5,000,000 thereof to be expended during the fiscal year 1939.

(4) That the sum of $2,000,000 be authorized and appropriated toward the making up of deficiencies in ammunition for the Army."

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"It is necessary for all of us to realize that the unfortunate world conditions of today have resulted too often in the discarding of those principles and treaties which underlie international law and order; and in the entrance of many new factors into the actual conduct of war.

“Adequate defense means that for the protection not only of our coasts but also of our communities far removed from the coast we must keep any potential enemy many hundred miles away from our continental limits.

“We cannot assume that our defense would be limited to one ocean and one coast and that the other ocean and the other coast would with certainty be safe. We cannot be certain that the connecting linkthe Panama Canal-would be safe. Adequate defense affects therefore the simultaneous defense of every part of the United States of America.

“It is our clear duty to further every effort toward peace but at the same time to protect our Nation. That is the purpose of these recommendations. Such protection is and will be based not on aggression but on defense.'

Pursuant to that message, a supplemental estimate of $16,880,000 was submitted on February 7, 1938 (H. Doc. 519), to which attention previously has been called herein and the total sum allocated to general objects.

The supplemental estimate includes no funds for the "better establishment of an Enlisted Reserve for the Army," as that proposal first requires authorizing legislation, which is cared for in H. R. 9359, now on the calendar.

The committee has approved the supplemental estimate in full, providing, however, contract authorization for $3,080,000 of the total amount, because the Department indicated it would not need such sum for disbursement during the fiscal year 1939.

It should be borne in mind that this supplemental estimate is not intended to provide adequate military defense; it merely speeds up or looks to speeding up the provision of some very substantial deficiencies in matériel directions essential to a personnel force of quite limited proportions. In support of this assertion, attention is invited

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