Bank lending during the 12 months ended on June 30, 1959, continued at the high level reached in the previous fiscal year aggregating the equivalent of approximately $703 million. As indicated in the bank's 14th Annual Report, because of the implications of the new level of bank lending in recent years, the governor of the bank for the United States proposed during the fiscal year consideration of an increase in the capital of the bank. This resulted in a proposal by the executive directors of the bank that member countries should be invited to double their capital subscriptions. The executive directors also agreed to recommend additional increases over and above the general 100 percent increase in the subscription of 17 member countries. It was proposed that the authorized capital of the bank be increased from $10 billion to $21 billion. The proposal envisaged that the entire amount of the additional general subscription would be left subject to call and that the board of governors of the bank should decide that calls would only be made if required by the bank to meet its obligations on borrowings or guarantees.

These proposals were adopted and, at the end of the fiscal year, legislation necessary to carry the increased subscriptions into effect was being enacted in many member countries. As of September 10, 1959, the proposal to increase the capital of the bank became effective when 34 countries had increased the subscribed capital by $7,664.7 million. At that date total subscribed capital was $17,221.2 million.

OPINIONS OF THE COMMISSION

Opinions are issued by the Commission in contested and other cases arising under the statutes administered by it and under the Commission's rules of practice, where the nature of the matter to be decided, whether substantive or procedural, is of sufficient importance to warrant a formal expression of views. These opinions include detailed findings of fact and conclusions of law based on evidentiary records taken before a hearing examiner who serves independently of the operating divisions, or, in an occasional case, before a single Commissioner or the entire Commission. In some cases, formal hearings are waived by the parties and the findings and conclusions are based on stipulated facts or admissions.

The Commission is assisted in the preparation of findings and opinions by its Office of Opinion Writing, a staff office completely independent of the operating divisions of the Commission and directly responsible to the Commission itself. The independence of the staff members of this office reflects the principle, embodied in the Administrative Procedure Act, of a separation between staff members performing investigatory or prosecutory functions and those performing quasi-judicial functions. In some cases, with the consent of all parties,

the interested operating division participates in the drafting o opinions.

Opinions are publicly released and distributed to representatives o the press and to persons on the Commission's mailing list. In ad dition, the opinions are printed and published by the Governmen Printing Office in bound volumes entitled "Securities and Exchang Commission Decisions and Reports."

During the fiscal year 1959, the Commission issued 143 opinion and other rulings of an adjudicatory nature.

STATISTICS AND SPECIAL STUDIES

At its inception the Commission organized a large Research Division to assist in the drafting of rules and regulations to carry out the pro visions of the Securities Act and the Securities Exchange Act. Th division was staffed with a large number of experts from variou phases of the securities business, economists, and statisticians. Man of the Commission's policies and rules, as well as further securitie legislation, were based on special studies prepared by the researc staff. By 1940 most of the initial research work required by the Com mission for the formulation of rules and regulations had been com pleted, and the Research Division was dissolved and certain of it activities and general statistical work was transferred to the Division of Trading and Exchanges.

While subsequent research and statistical work was of a more routin nature and was chiefly carried out for internal purposes, the Com mission began to provide more information of a broader economi character as related to the capital markets. During this period th Commission began publication of its series on individuals' saving corporate liquid position, plant and equipment expenditures an quarterly financial report for manufacturing corporations. Severa of these series are joint undertakings with other Government agencies As public interest grew in the various data prepared and collected by the SEC, more of the statistical material was released and the publica tion of a monthly statistical bulletin was begun.

In recent years, the statistical activities have been co-ordinate with the overall Government statistical program under the direction of the Bureau of the Budget. As the need arises, new surveys ar made. One of the most significant in the last few years is the Com mission's survey of corporate pension funds. All of the series pub lished by the Commission are studied continuously in order to expan and improve them in answer to demands of Government agencies business and the general public.

The regular statistical series which are prepared include data o securities effectively registered under the Securities Act of 1933, offer ings of securities by all corporations in the United States (including

issues not registered with the Commission, such as privately placed issues and railroad securities), retirements of corporate securities, net change in corporate securities outstanding, stock prices and trading. In addition, the research and statistical activity carried out under the direction of the Bureau of the Budget includes individuals' saving in the United States, income flow and investments of private pension funds of United States corporations, current liquid position of United States corporations, sources and uses of corporate funds, anticipated expenditures for plant and equipment by United States businesses, and a quarterly financial report for all United States manufacturing concerns.

The statistical series described below are published in the Commission's statistical bulletin and in addition, except for data on registered issues, current figures and analyses of the data are published in quarterly press releases. The Commission's stock price index is released weekly, together with the data on round-lot and odd-lot trading on the two New York stock exchanges.

Issues Registered Under the Securities Act of 1933

Monthly and quarterly statistics are compiled on the number and volume of registered securities, classified by industry of issuer, type of security, and use of proceeds. A summary covering the entire 25-year period of the Commission's history appears on page 215, appendix table 1.

New Securities Offerings

This is a monthly and quarterly series covering all new corporate and noncorporate issues offered for cash sale in the United States. The series includes not only issues publicly offered but also issues privately placed, as well as other issues exempt from registration under the Securities Act such as intrastate offerings and railroad securities. The offerings series includes only securities actually offered for cash sale, and only issues offered for account of issuers. Annual statistics on new offerings beginning with 1934 as well as monthly figures from January 1958 through June 1959, are given in appendix tables 3, 4 and 5.

Estimates of the net cash flow through securities transactions are prepared quarterly and are derived by deducting from the amount of estimated gross proceeds received by corporations through the sale of securities the amount of estimated gross payments by corporations to investors for securities retired. Data on gross issues, retirements and net change in securities outstanding are presented for all corporations and for the principal industry groups.

Stock Market Data

Statistics are regularly compiled on the market value and volume of sales on registered and exempted securities exchanges, round-lot

stock transactions of the New York exchanges for accounts of members and nonmembers, odd-lot stock transactions on the New York exchanges, special offerings and secondary distributions. Indexes of stock market prices are compiled, based upon the weekly closing market prices of 265 common stocks listed on the New York Stock Exchange. The indexes are composed of 7 major industry groups, 29 subordinated groups, and a composite group.

Individuals' Saving

The Commission compiles quarterly estimates of the volume and composition of individuals' saving in the United States. The series represent net increases in individuals' financial assets less net increases in debt. The study shows the aggregate amount of saving and the form in which the saving occurred, such as investment in securities, expansion of bank deposits, increase in insurance and pension reserves, etc. A reconciliation of the Commission's estimates with the personal saving estimates of the Department of Commerce, derived in connection with its national income series, is published annually by the Commerce Department as well as in the Securities and Exchange Commission Statistical Bulletin.

Corporate Pension Funds

An annual survey is made of pension plans of all United States corporations where funds are administered by corporations themselves, or through trustees. The survey shows the flow of money into these funds, the types of assets in which the funds are invested and the principal items of income and expenditures.

Financial Position of Corporations

The series on working capital position of all United States corporations, excluding banks, insurance companies and savings and loan associations, shows the principal components of current assets and liabilities, and also contains an abbreviated analysis of the sources and uses of corporate funds.

The Commission, jointly with the Federal Trade Commission, compiles a quarterly financial report of all United States manufacturing concerns. This report gives complete balance sheet data and an abbreviated income account, data being classified by industry and size of company.

Plant and Equipment Expenditures

The Commission, together with the Department of Commerce, conducts quarterly and annual surveys of actual and anticipated plant and equipment expenditures of all United States business, exclusive of agriculture. Shortly after the close of each quarter, data are released on actual capital expenditures of that quarter and anticipated expenditures for the next two quarters. In addition, a survey is made

at the beginning of each year of the plans for business expansion during that year.

PUBLIC DISSEMINATION OF INFORMATION

Public disclosure and dissemination of information with respect to securities offered for public sale and those traded on exchanges is essential if public investors generally are to benefit by the disclosure requirements of the Federal securities laws and if an evaluation of the worth of securities is to be made by a broad segment of the investing public. This is accomplished in part by distribution of the prospectus of offering circular on new offerings, and by filing of annual and other periodic reports with exchanges and the Commission by listed companies. Much data filed with the Commission obtains widespread currency through published securities manuals, investment advisory services, statistical services and otherwise.

To facilitate public dissemination of the financial and other proposals filed with and actions taken by the Commission, a daily News Digest is issued which contains a résumé of these findings and actions. This digest is distributed initially to the press, and is distributed on a semiweekly basis to a mailing list comprising nearly 7,000 names. The daily digest, for example, contained a summary of the pertinent facts with respect to the proposals for public offering of securities contained in the 1,226 registration statements filed during the past fiscal year. During the year, also, the daily digests contained an informative discussion of each of the 888 orders, decisions and rules issued by the Commission. Much of the information is published in the daily newspapers and in financial and other periodicals. Other releases of an informational nature issued by the Commission include its various Statistical Series releases and announcements of actions, civil and criminal, which arise out of the enforcement of the laws.

Members of the Commission and its staff also deliver addresses from time to time before professional and other groups, and participate in radio or television discussions, to explain the nature and scope of the Commission's functions and activities.

Information Available for Public Inspection

During every fiscal year thousands of requests for information are received by mail and through telephone calls and personal visits. Most of these requests are answered by employees in the Commission's public reference rooms in Washington, Chicago, and New York City. The files of the Commission provide information of interest to a large cross section of the public. Numerous people visit the public reference rooms seeking information on which to base decisions to buy or sell securities; they are furnished the files which contain financial and other information about the issuers of the securities. Many other visitors consult Commission records. They may be repre