March 20, 1956


(In millions of dollars) Old Age Security Payments by Provinces Fiscal Year Ended March 31 Increase or Decrease (-) 1956 (Estimated) 1955 Newfoundland 7-6 7-5 0-1Nova Scotia 18-4 18-1 0-3Prince Edward Island 3-3 3-3 New Brunswick 13-2 12-9 6-3Quebec 77-0 74-7 2-3Ontario 134-7 130-3 4-4Manitoba 22-0 21-1 0-9Saskatchewan 22-3 21-2 1-1Alberta 22-7 21-4 1-3British Columbia 44-6 42-5 2-1Northwest and Yukon Territories 0-3 0-2 0-1366-1 353-2 12-9 Undisbursed balances of appropriations to special accounts This category is set up to record the undisbursed balances of appropriations to special accounts for which moneys have been appropriated by parliament and from which disbursements may be made for authorized purposes in periods subsequent to that in which the appropriation was made. It is estimated that there will be a net increase of $8 million during the year in these accounts, due chiefly to increases of $5 million in the national defence equipment account and $5 million in the railway grade crossing fund and a decrease of $3 million in the national capital fund. The Budget-Appendix The railway grade crossing fund is expected to show an increase of approximately $5 million for the year, representing the amount credited to this account and charged to expenditure less disbursements from the account. . The transactions in the national defence equipment account reflect an increase in the undisbursed balance in the account which was established under section 3 of the Defence Appropriation Act, 1950, and continued by subsequent votes of parliament for the same purpose. Under the terms of the Act, the value of defence materials and supplies acquired prior to March 31, 1950, and transferred to members of the North Atlantic Treaty Organization may be credited to the account and these credits may be used in subsequent years to purchase equipment or supplies for the naval, army or air services of the Canadian forces. Disbursements from the account during the fiscal year are estimated at $49 million and credits for equipment transferred at $54 million. Suspense accounts Suspense accounts are expected to show a net increase of $3 million. The major changes in the accounts of this category are increases of $4 million in balances receivable under agreements of sale of Crown assets and $2 million in the replacement of materiel account and decreases of $1 million in military relief and currency credits and $1 million in emergency gold mining assistance holdbacks. The replacement of materiel account established by section 11 of the National Defence Act is credited with amounts realized from the sale of materiel that has not been declared surplus to requirements but has been authorized by the Governor in Council to be sold to other countries. The account is debited with disbursements representing amounts paid for the procurement of replacement materiel. It is estimated that during 1955-56 credits to the account will exceed disbursements by $2 million. The increase in balances receivable under agreements of sale of Crown assets reflects certain new agreements of sale, including $2 million with Canadian Pratt and Whitney Aircraft Limited and $2 million with English Electric Company Limited. Unmatured debt The outstanding unmatured debt at the close of 1955-56 is estimated at $15,394 million. An increase of $946 million reflected in debt payable in Canada will be only partly offset by a decrease of $48 million in debt payable in New York, leaving a net increase for the year in unmatured debt of $898 million. B. Changes in the Principal Asset Classifications during 1955-56 It is estimated that assets will have increased by $1,052 million during the fiscal year ending March 31, 1956. Increases of $973 million in current assets, $214 million in loans to, and investments in, Crown corporations, $25 million in sinking funds and J510 million in other loans and investments are offset in part by decreases of $71 million in loans to national governments, $25 million in advances to the exchange fund account, $12 million in deferred charges and $63 million in suspense accounts. No change is expected in the reserve for losses on the realization of assets which stood at $496 million at March 31, 1955. Current Assets 1 he changes during the fiscal year in the various accounts in this category are shown in the following table: 2428



The Budget-Appendix


TABLE XXXVI


(In millions of dollars) Balance at March 31 Increase or Decrease (-) Current Assets 1956 (Estimated) 1955 Cash in current and special deposits (including blocked currency of $0*4 million at March 31, 19o6 and SI [DOT] 2 million 528-1 231-1 297-0124-3 126-2 -1-9Departmental working capital advances and revolving funds- 360 31-6 4-470-0 72-8 -2-850-4 50-4Miscellaneous departmental imprest and advance 19-3 21-5 -2-220-7 19-7 1-0Other current assets- 671-6 45-6 626-0Moneys received after March 31 but applicable to the current year 18-4 17-1 1-31,538-8 565-6 973-2 The estimated increase of $973 million in current assets is due to increases of $626 million in the securities investment account (which records the government's temporary holdings of its own securities including those held for the government employees purchase plan), $297 million in cash in curient and special deposits and $51 million in departmental working capital advances and revolving funds. Of the net increase of $51 million in departmental working capital advances and revolving funds, $50 million is due to temporary loans during 1955-56 to the old age security fund and $4 million to a net increase in the agricultural prices support account offset by decreases of $3 million in the defence production revolving fund and $2 million in miscellaneous imprest and advance accounts. The amount of $50 million advanced as a temporary loan to the old age security fund is the amount by which pension payments during 1955-o6 exceeded tax receipts credited to the fund. The deficit in the fund for 19o4-55 was earned in suspense accounts at March 31, 1955 as parliament by "V ote 689 of Appropriation Act No. 5, 1955, had authorized the deficit resulting from 1954-55 transactions to be charged to budgetary expenditures in 1955-56. The estimated increase of $4 million in the agricultural prices support account reflects an increase in inventory holdings during the year estimated at $10 million and a reduction of $6 million in respect of the loss on 1955-56 operations included in the year's expenditures. The decrease of $3 million in the defence production revolving fund reflects the amount by which credits to the account from the sale of essential materials and defence supplies exceed the cost of acquiring, storing, maintaining and transporting such materials. Miscellaneous departmental imprest and advance accounts record accountable advances to departments held on deposit in various banks in the name of the department concerned, certain travelling and imprest advances to public officers and advance payments to contractors. During the fiscal year these advances are carried as charges to the relevant appropriations; if they are not repaid or accounted for at the year-end, they are cleared from the appropriation and debited to this account and at the beginning of the new fiscal year are cleared from the account and charged to the appropriation concerned until such time as an accounting is made. The Budget-Appendix Advances to the exchange fund account Advances to the exchange fund are estimated at 840 million and repayments at $65 million, resulting in a net repayment of 825 million during the fiscal year. Sinking fund and other investments held for retirement of unmatured debt It is expected that there will be an increase of 825 million in this account during the fiscal year 1955-56, due mainly to an increase in the holdings of bonds of various Government of Canada issues payable in United States dollars. Loans to, and investments in, Crown corporations It is estimated that loans to, and investments in, Crown corporations will increase by 8214 million during the year. The most important changes are net increases of $178 million in loans and advances to the Canadian National Railways, $20 million in advances to the St. Lawrence Seaway Authority, $12 million in advances to Atomic Energy of Canada, Limited and $9 million in loans to the Canadian Broadcasting Corporation and a net decrease of $9 million in loans to Central Mortgage and Housing Corporation. The changes in this category are shown in the following table:


TABLE XXXVII


(In millions of dollars) Loans to, and Investments in, Crown Corporations Atomic Energy of Canada Limited Bank of Canada Canadian Arsenals Limited Canadian Broadcasting Corporation Canadian Commercial Corporation Canadian Farm Loan Board Central Mortgage and Housing Corporation Canadian National Railways Canadian National (West Indies) Steamships Limited Canadian Overseas Telecommunication Corporation.. Eldorado Mining and Refining Limited Export Credits Insurance Corporation National Harbours Board Northwest Territories Power Commission Polymer Corporation Limited St. Lawrence Seaway Authority Other Crown Corporations Balance at March 31 Increase or Decrease (-) 1956 (Estimated) 1955 44-0 32-0 12-0 5-9 5-9 7-5 7-5 27-5 19-0 8-5G-0 10-0 -4-041-9 37-0 4-9565-9 575-0 -9-11,111-8 934-0 177-83-7 3-8 -0-17-6 4-1 3-58-2 8-2 10-0 10-0 107-5 107-2 0-37-8 7-8 30-0 30-0 21-5 1-3 20-21-1 0-7 0-42,007-9 1,793-5 214-4 Advances to Atomic Energy of Canada Limited arc estimated at $12 million for the fiscal year, resulting in an increase of $12 million and bringing advances to §44 million at March 31, 1956. The advances are to be covered by obligations or shares of the company in the same amount. Of the total for the year $2 million is for working capital and $10 million for the construction or acquisition of buildings and equipment at Chalk River and Deep River and for the commercial products division at Ottawa. Loans amounting to $9 million are expected to be made during the year to the Canadian Broadcasting Corporation to cover the capital costs of television installations and to support the development of the service. The total loans to the Corporation outstanding at March 31, 1956 are expected to amount to $28 million. It is estimated that in the fiscal year ending March 31, 1956, the Government willjmye made net advances to the Canadian National Railway Company of $157 million for capital purposes and retirement of funded debt in the hands of the public. 67509-154J



The Budget-Appendix In addition, to assist the Company to finance additional expenditures, the Government will have purchased an estimated amount of $21 million of the 4 per cent preferred stock of the Canadian National Railway Company. This stock is issued under the authority of the Canadian National Railways Capital Revision Act, 1952 in an amount equal to three per cent of the gross revenues of the Company. Loans to Central Mortgage and Housing Corporation during the fiscal year are expected to amount to $4 million, of which $3 million is for federal-provincial housing projects and $1 million for house construction. Repayments are estimated at $13 million, of which $9 million is in respect to direct loans by the corporation and joint loans with lending institutions, $3 million on account of advances for house construction and $1 million in respect of loans for federal-provincial projects. The net decrease for the fiscal year in loans to the corporation is thus $9 million. The net increase in advances to the St. Lawrence Seaway Authority during the year is estimated at $20 million, bringing total loans at the close of the fiscal year to $21 million. Other increases in loans and advances to Crown corporations include $5 million to the Canadian Farm Loan Board and $4 million to the Canadian Overseas Telecommunication Corporation. It is also expected that there will be a decrease of $4 million in loans and advances to the Canadian Commercial Corporation. Loans to national governments It is estimated that loans to national governments will total $1,550 million at the end of the fiscal year, a decrease of $71 million from the total at the close of the previous year. The estimated changes in these loans are shown in the following table:


TABLE XXXVIII


(In millions of dollars) Loans to National Governments Balance at March 31 Increase or Decrease (-) 1956 (Estimated) 1955 Loans to United Kingdom- . The War Appropriation (United Kingdom Financing) A of. 1Q49 82-5 112-5 -30-0The United Kingdom Financial Agreement Act, 1946.. 1,112-1 1,194-6 1,127-3 1,239-8 -15-2 -45-2Loans under the Export Credits Insurance Act, Part 11- 48-5 50-8 -2-30-0 9-9 -3-9184-1 192-5 -8-43-1 -3-196-4 101-0 -4-610-5 10-5 345-5 367-8 -22-3Miscellaneous loans and advances- 2-0 3-0 -1-01-8 1-9 -0-1Netherlands-Military relief and currency credit settle- 3-4 4-0 -0-61-8 3-6 -1-80-8 0-7 0-19-8 13-2 -s-41,549-9 1,620-8 -70-9 The Budget-Appendix During the year the Government of the United Kingdom will have reduced the balance of the $700 million interest free loan granted under the provisions of the War Appropriation (United Kingdom Financing) Act, 1942 by $30 million as arranged under the terms of an agreement entered into on August 13, 1953, between the Governments of the United Kingdom and Canada. The balance outstanding at March 31, 1956 is estimated at $83 million. Under the terms of the agreement the loan is to continue to be free of interest until December 1958. The Government of the United Kingdom has repaid $15 million on account of the $1,185 million loan made under the $1,250 million credit authorized by the United Kingdom Financial Agreement Act, 1946, reducing the unpaid balance to $1,112 million at the close of the fiscal year. Repayments of advances under Part II of the Export Credits Insurance Act to certain foreign countries to assist them in purchasing goods and services in Canada are estimated at $22 million for the year, as shown in the preceding table. The payment on the loan to Norway, due on June 30, 1955, was received in September 1954, which accounts for no decrease being shown on this loan for the current year. There has been no payment received during the year on account of the $49 million loan to China which now is included in "inactive loans and investments". Other loans and investments Other loans and investments are estimated to increase by $10 million during the year. The balances of the main accounts in this category together with the changes during the year are shown in the following table:


TABLE XXXIX


(In millions of dollars) Balance at March 31 Increase or Decrease (-) Other Loans and Investments 1956 (Estimated) 1955 Subscriptions to capital of, and working capital advances to, international organizations- Canada's subscription to capital of- International monetary fund 299-0 293-4 5-6International bank for reconstruction and development 70-9 70-9 1-7 Working capital advances to international organizations.. 1-6 -0-1371-5 366-0 5-5Loans to provincial governments- Alberta 100 10-4 -0-4British Columbia 19-4 20-1 -0-7Manitoba 16-2 16-8 -0-6Nova Scotia 01 01 0-1 Prince Edward Island 01 Saskatchewan 27-3 29-2 -1-973-1 76-7 -S-6Soldiers Settlement and Veterans Land Acts advances 162-8 162-5 0-3M iscellaneous- Balances receivable under agreements of sale of Crown assets 11-0 6-8 4-2Municipal Improvements Assistance Act, 1938 2-9 3-1 -0-2Dominion Coal Company Limited 4-4 4-4 Acquisition of land to control properties in the vicinity of main terminal airports 3-4 2-0 1-4Construction of dock and rail facilities for Steep Rock Iron Mines Limited 2-5 2-6 -0-1Other 9-6 7-0 2-633-8 35-9 7-9641-2 631-1 10-1 The Budget-Appendix The increase of $6 million during the year in Canada's subscription to the capital of the International Monetary Fund is due to the adjustment of the government's Canadian dollar equity in the fund. Loans to provincial governments are expected to be reduced by the amount of $4 million reflecting repayments by the governments concerned. Advances under the Soldier Settlement and Veterans Land Acts are expected to increase by $7 million during the year. However, as approximately $7 million will have been added to the reserve for conditional benefits under the Veterans Land Act, there is no net change. Miscellaneous loans and investments are expected to increase by $8 million during the year due mainly to increases of $4 million in balances receivable under agreements of sale of Crown assets, $1 million in the acquisition of land to control properties in the vicinity of main terminal airports and $3 million in other accounts. Deferred charges Unamortized loan flotation costs are expected to decrease by $12 million during the year to $56 million at March 31, 1956. Payments of $8 million for commissions and discounts on new loans are more than offset by the annual amortization charges of $20 million applicable to 1955-56 included in the year's expenditures. Unamortized 'portion of actuarial deficiency in the superannuation account No change is expected during the fiscal year in the unamortized portion of the actuarial deficiency in the superannuation account, the balance at March 31, 1956 remaining at $189 million. Suspense accounts The decrease of $63 million in this category is in respect of the 1954-55 deficit in the old age security fund which was included as a charge in budgetary expenditures for 1955-56 under the authority of Vote 689 of Appropriation Act No. 5, 1955. The temporary loan to cover the 1955-56 deficit, estimated at $50 million, is shown under current assets. Capital assets This asset category records on the government's statement of assets and liabilities, at a nominal value of $1, the capital assets that are charged to net debt at the time of acquisition or construction. Inactive loans and advances This category records those loans and advances which are not currently revenue-producing or realizable. The balance at March 31, 1956 is estimated at $80 million and includes the loan of $49 million to China under the Export Credits Insurance Act, and loans of $24 million to Roumania and $7 million to Greece, made in 1919-20 and 1920-21. Reserve for losses on realization of assets There is no change in the reserve for losses on realization of assets during the year, the balance at March 31, 1956 being $496 million, unchanged from the end of the previous year. The Budget-Appendix C. Increase in Net Debt The estimated deficit for the fiscal year of $52 million will result in a corresponding increase in the net debt of Canada from $11,263 million at March 31, 1955 to $11,315 million at March 31, 1956. 5. THE CASH POSITION Although most of the government's financial transactions are reflected in the budgetary accounts it is to be noted that the government also receives and disburses substantial amounts of cash that are not recorded as budgetary revenues and expenditures. These other receipts and disbursements relate to transactions which result in increases or decreases in the government's assets and liabilities and they do not therefore appear in what might be called the government's income account for the fiscal year nor do they enter into the calculation of the annual budgetary surplus or deficit. As previously indicated it is expected that when the books for the year are closed the budgetary transactions for 1955-56 will have resulted in a deficit of $52 million. However, during the same period it is estimated that unmatured debt in the hands of the public (that is the outstanding unmatured debt less the government's holdings of that debt in the securities investment and sinking fund accounts) will have increased by $247 million while cash balances will have risen by $297 million. It is apparent that in considering the full scope of the government's financial operations and in measuring their effect on the government's cash position and their impact upon the economy, non-budgetary as well as budgetary transactions must be taken into account. On the assets side the non-budgetary transactions consist, for the most part, of loans and advances to, and repayments by, Crown corporations and other government agencies and funds (including the old age security fund), national, provincial and municipal governments, international organizations, veterans and other borrowers. On the liabilities side the non-budgetary transactions relate mainly to receipts and payments in connection with the many deposit and trust, and annuity, insurance and pension funds held or administered by the government. The following statement summarizes these non-budgetary transactions for 1955-56 and indicates how they, together with the budgetary transactions, affect the government's unmatured debt and cash position. For purposes of comparison the corresponding figures for 1954-55 are also shown:



The Budget-Appendix TABLE XL (In millions of dollars) Changes in Cash Position Fiscal year ended March 31 1956 (Estimated) 1955 Non-Btjdgetary Receipts and Credits (excluding unmatured debt transactions) Repayments of loans, investments and working capital advances- Loans to Canadian Commercial Corporation 40 Advances to defence production revolving fund 2-8 7-4Loans to Central Mortgage and Housing Corporation 9-1 -43-7Advances to exchange fund 25-0 -25-01942 loan to United Kingdom 30-0 30-01946 loan to United Kingdom 15-2 14-8Loans to other national governments 25-7 26-5Loans to provincial governments 3-6 3-4Other loans, investments and working capital advances 2-6 27-01180 7,0-7,Net government annuities account receipts- 32-8 34-0Premium receipts less payments to beneficiaries Government contribution to maintain reserve 0-4 0-4Interest paid by government 34-3 31-667-5 66-0Net insurance and pension account receipts- 24-9 27-0Employee contributions less payments to beneficiaries Government contributions 72-4 74-9Interest paid by government 43-2 37-517,0-5 139-7,Temporary loans to old age security fund 12-8 -17-4Net increase in special defence accounts 7-0 -48-1Net reduction in unamortized loan flotation costs 11-9 3-4Net increase in reserve for conditional benefits-Veterans Land Act.... 6-7 8-7Net receipts in sundry other accounts 20-8 31-7385'2 224-1Non-Budgetary Disbursements and Charges (excluding unmatured debt transactions) Loans, investments and working capital advances- 9-3Advances to agricultural prices support account 4-4 Loans to Atomic Energy of Canada Limited 12-0 16-0Loan to Canadian Broadcasting Corporation 8-5 3-0Loans to Canadian Farm Loan Board 4-9 4-4Loans to, and investments in, Canadian National Railways 177-8 -93-4Subscription to capital of International Monetary Fund 5-6 -29-1Loans to St. Lawrence Seaway Authority 20-2 1-3Loans under Soldier Settlement and Veterans Land Acts 7-0 9-3Other loans, investments and working capital advances 13-2 10-4253-6 -68-8Net decrease in prairie farm emergency fund 4-7 11-9Net decrease in matured debt and other demand liabilities 15-3 50-0Net disbursements from sundry other accounts 9-7 11-7283-3 4-8Net amount available from non-budgetary transactions 101-9 219-3Deduct Budgetary Deficit -51-7 -151-8Overall cash available for debt reduction 50-2 67-5Net increase or decrease (-) in unmatured debt outstanding in the hands of the public- Securities investment account -626-0 -27-6-25-0 -89-0897-8 -79-727,6-8 -196-3Net increase or decrease (-) in cash balances on deposit to the credit of the Receiver General 297-0 -128-8 The Budget-Appendix Non-budgetary receipts and credits (excluding unmatured debt transactions) are estimated at $385 million while non-budgetary disbursements and charges (also excluding unmatured debt transactions) are expected to total $283 million resulting in a net amount of $102 million available from non-budgetary transactions. As the budgetary deficit is estimated at $52 million, $50 million will be available for debt reduction or increase in cash balances. In 1954-55 the excess of receipts over disbursements was $219 million which after deducting the budgetary deficit of $152 million left $67 million available for debt reduction. Non-budgetary receipts and credits are estimated at $385 million. Repayments of loans, investments and working capital advances are expected to amount to $118 million, including $25 million from the exchange fund, $45 million from the Government of the United Kingdom and $26 million from other national governments. Net government annuity account receipts are estimated at $67 million and net insurance and pension account receipts at $141 million. The net repayment of $13 million in temporary loans to the old age security fund reflects loans of $50 million during the fiscal year and the charge to budgetary expenditures during 1955-56 of the 1954-55 deficit of $63 million. Net receipts in various other accounts are estimated at $46 million. Non-budgetary disbursements and charges are expected to amount to $283 million in 1955-56. Loans, investments and working capital advances, estimated at $254 million, include $12 million to Atomic Energy of Canada Limited for working capital and to finance the construction of the new reactor and other buildings and works at Chalk River and Deep River, $9 million to the Canadian Broadcasting Corporation to cover capital costs of television installations and to support the development of the service, $178 million to the Canadian National Railways for additions and betterments, the acquisition of equipment and new rolling stock, additional working capital and the redemption of maturing Canadian National Railways.bond issues, $20 million for loans to The St. Lawrence Seaway Authority for construction purposes, $7 million for loans to veterans and $28 million for other loans, investments and working capital advances. Other non-budgetary disbursements are expected to total $30 million. In summary, unmatured debt in the hands of the public after taking into account transactions in the securities investment account and sinking fund is expected to increase by $247 million and this amount with the $50 million available from budgetary and non-budgetary transactions will increase cash balances on deposit with banks by an estimated $297 million. 6. THE PUBLIC DEBT Gross and net debt It is estimated that the unmatured debt of Canada will increase by $898 million and other liabilities by $205 million during the fiscal year. Consequently it is expected that the gross public debt of Canada will increase by $1,103 million from $17,952 million at March 31, 1955 to an estimated total of $19,055 million at March 31, 1956. As the government's assets as shown on the statement of assets and liabilities are expected to increase by $1,052 million during the same period, the net debt is expected to increase by $52 million. 2436



The Budget-Appendix 1949 50 51 52 53 54 55 56* estimated


GROSS AND NET DEBT

BILLIONS OF DOLLARS


The following table shows the relationship between the gross public debt* the unmatured debt and the net debt at the end of each fiscal year, March 31> 1949 to 1956 inclusive, the 1956 amounts being estimated.


TABLE XLI


Statement of Public Debt, Unmatched Debt, Recorded Assets and Net Debt of Canada (In million of dollars) As at March 31 Gross Public Debt Less Recorded Assets Net Debt Increase or Decrease (-) in Net Debt during Fiscal YearUnmatured Debt Other Liabilities Total 1949 15,585-0 1,365-4 16,950-4 5,174-3 11,776-1 -595-51950 15,188-1 1,562-7 16,750-8 5,106-1 11,644-6 -131-51951 15,026-8 1,896-5 16,923-3 5,490-0 11,433-3 -211-31952 14,695-4 2,562-3 17,257-7 6,072-4 11,185-3 -248-01953 14,810-5 3,108-0 17,918-5 6,756-8 11,161-7 -23-51954 14,576-2 3,347-0 17,923-2 6,807-3 11,115-9 -45-81955 14,496-5 3,455-0 17,951-5 6,688-4 11,263-1 147-21956 (Estimated) 15,394-3 3,660-6 19,054-9 7,740-1 11,314-8 51-7 Unmatured debt It is estimated that the unmatured debt of Canada will total $15,394 million at March 31, 1956, an increase of $898 million over March 31, 1955. However, it is to be noted that during the same period the holdings of securities in the sinking fund and the securities investment accounts are expected to increase by $651 million, resulting in an increase of $247 million in the unmatured debt outstanding in the hands of the public. Of the increase of $651 million, $445 million represents the repurchase of treasury notes originally purchased and held by the Bank of Canada. The Budget-Appendix Summary of security issues and redemptions during the fiscal year It is estimated that during the fiscal year 1955-56 the government will have issued securities payable in Canadian dollars in the principal amount of $3,229 million (excluding the refunding of treasury bills which mature periodically) and redeemed maturing issues in the amount of $2,331 million, $48 million of which was payable in United States dollars and the balance in Canadian dollars. The financing of redemptions was effected as follows: (in millions of dollars) By proceeds of new issues: Canada savings bonds, series 10 (net) 644-1 Two year ten month loan 100-0 Increase in treasury bills 710-0



1,454-1 By refunding or conversion into new issues 1,775-0 3,229 [DOT] 1 As a result of these transactions the net increase in unmatured debt is estimated at $898 million. The amount of treasury bills outstanding at the end of the fiscal year is estimated at $1,600 million or $710 million more than at March 31, 1955. Of this amount $1,340 million is in three month bills and $260 million in nine month bills. The increase of $710 million reflects the government's desire to meet a growing demand for short-term securities. Details of redemptions and new issues of securities during the fiscal year are set out in the following tables:


TABLE XLII

March 20, 1956