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ANNUAL REPORT OF THE

ecretary of the Treasury
ON

THE STATE OF THE
FINANCES
FOR THE FISCAL YEAR
ENDED JUNE 30

1921

With Appendices

WASHINGTON
GOVERNMENT PRINTING OFFICE
1922

fllitilSlilIiMifiiiiSii






T R E A S U R Y DEPARTMENT,

Document No. 2898.
Secretary.

CONTENTS,
R E P O R T OF THE SECRETARY OF THE TREA.SUR"S:

Introduction
:
1
Refunding of the short-dated debt
3
Revenue revision
6
Taxation and revenue
'
11
Surtaxes
14
Destruction of incentive
^
16
Need for new capital
17
Diversion of capital
18
Freedom of business transactions essential
19'
Injurious effect of high rates on the revenues
20*
B u s i n e s s profits.
21
Estate tax
22
The remedy
'.
25
Bureau of Internal Revenue
26
Prohibition and narcotic enforcement
30
Economy in Government expenditures, budget system
31
Loans to foreign Governments
:
32
Funding legislation
40^
International financial situation
42
Domestic credit situation
«..
43
War Finance Corporation and its activities
49*
Soldiers' bonus.
55
Securities owned by the United States Government
56Transactions in the interest-bearing public debt of the United States
58
Bonds purchased from repayments of foreign loans
60
Cumulative sinking fund
61
Expenditures for the sinking fund
62
Five per cent bond purchase fund
63
Bonds and notes retired on miscellaneous accounts
64
Treasury notes and certificates of indebtedness
65
Market prices of Liberty bonds and Victory notes
69
Government savings securities
71
Savings securities for 1921
74
_ Savings secmities for 1922
,...
77
Railroads
. 78
Section 204
78
Section 209
79
Section 210
:
80
Discontinuance of the subtreasuries
80
Deposits of Government funds
84
Gold
87
Gold production
90
Russian gold.
->
91
Silver
V.
91
The mints
92
Federal Farm Loan System
93
Joint-stock land banks
94
Farmers' seed-grain loans
94
War risk insurance
95
Reorganization
9G
War risk organization an d personnel
101
Soldiers' and sailors' civil relief act and bonds
102
District of Columbia teachers' retirement fund
,
102
Hospitalization
:
103




458

mMiwsmmmmmm

IV

.

.

CONTENTS.

R E P O R T OF THE SECRETARY OF THE TREASURY—Continued.

Public Health Service....'
Coast Guard
Ice patrol
.-.-.Winter cruising.
Cruises in northern waters
.Anchorage and movements of vessels
Derelicts
Coastal communication
'
Aviation
,
Coast Guard repair depot.. v
Vessels a n d stations — —
Customs laws
Other activities
Cominissioned personnel
,
Customs
-..•
Bureau of Engraving and Piinting
o
- Public buildings
Inter-American High Commission
General Supply Committee
Checking accounts of Government corporations and Railroad Administration maintained with Treasurer of United States
.
"
New currency designs
Treasury organization
Personnel
Retirement of civil-service employees
Surety bonds
Annual report of delinquencies of disbursing officers i n the rendition of
, their accounts
Recognition of attorneys and agents representing claimants.before the Treasury and offices thereof
Panama Canal
Finances
Receipts and expenditures, 1921
Postal Service...
:
Sinking fund
Condition of the Treasury June 30, 1921
Comparison of receipts, fiscal years 1921 and 1920
Comparison of disbursements, fiscal years 1921 and 1920
Summary of receipts and expenditures, 1921, and estimated receipts and expenditures, 1922 and 1923
Classified ordinary expenditures, 1920 and 1921, etc
Public debt expenditures and receipts, e t c .
Estimated receipts and expenditures, 1922
Estimated postal revenues, 1922
Classification of estimated ordinary expenditures, 1922. .Estimated receipts and expenditures, fiscal year 1923
Estimated postal revenues, fiscal year 1923
-.
Classification of estimated ordinary expenditures, fiscal year 1923
Estimated internal-revenue receipts under revenue act approved November 23, 1921
.^
Estimate of miscellaneous receipts for fiscal years 1922 and 1923, b)^ departments, etc
. Estimates for 1923 and appropriations for 1922
Statement of estimates of appropriations for 1923 compared with appropriations for 1922.,
Exhibit of appropriations for 1922

Page

109
112
113
113
113
114
114
114
114
115
115
115
115
116
116
119
119
120
122
123
124
125
126
I27
129
129
130
131
132
132
136
137
137
140
142
151
154
155
156
156
156
158
159
159
160
161
161
162
163

Exhibits accompanying the report on the finances.
Exhibit 1: Certificates of indebtedness: Total issues and amount issued
through each Federal reserve bank and Treasury Department
169
Exhibit 2: Issues and retirements, certificates of indebtedness, fiscal year
1921
174
Exhibits 3 to 12, inclusive: Department Circulars Nos. 214, 222, 227, 232,
235, 238, 241, 246, 255, 264, certificates of indebtedness
177-189
Exhibits 13 and 14: Department Circulars 240 and 256. Treasury notes.. 190-192




CONTENTS.
REPORT OF THE SECRETARY OF THE TREASURY—Continued.

V
Page.

Exhibits 15 to 21: Offers to redeem before maturity Treasury certificates of
indebtedness
193-195
Exhibits 22 to 25: Letters of the Secretary of the Treasury to banks and
trust companies accompanying offers of Treasury certificates of indebted- ,
ness>
.•
195-203
E x h i b i t 26: Statement of the public debt of t h e United States, J u n e 30,
1921
206
Exhibit 27: Preliminary statement of the public debt, Oct. 31, 1921
214
Exhibit 28: Quarterly comparative public debt statement, showing also
figures for Aug. 31, 1919, when war debt was at its peak
214
Exhibit 29: Sections 204, 209, and 210 of transportation act 1920, as
amended —
^
215
Exhibit 30: Amounts of partial payments, and final payments, respectively, less deductions therefrom for indebtedness to the President to
Nov. 15, 1921, inclusive, made to carriers in respect to the reimbursement of deficits provided in section 204 of the transportation act 1920,
as amended
222
Exhibit 31: Amounts of advances, partial payments, and final payments,
respectively, to Nov. 15, 1921, inclusive, made to earners in respect to
the guaranty provided in section 209 of the transportation act 1920, as
amended
:
,
223
Exhibit 32: Amounts of loans to Nov. 15, 1921, inclusive, made to carriers
under-sec tion 210 of the transportation act 1920, as amended, and amounts
of repayments on such loans
'227
Exhibit 33: Letter of the Secretary of the Treasury of July 2,1921, to Hon.
Joseph S. Frelinghuysen
229
Exhibit 34: Address of the President of the United States delivered to the
Senate on J u l y 12, 1921, relative to the soldiers' adjusted compensation
bill
'
232
Exhibit 35: Statement showing the transactions of the fiscal year 1921 on
the basis of the daily Treasury statements
236
Exhibit 36: Clash expenditures of the Gevernment for fiscal years 1917 to
1921, inclusive, as published in the daily Treasury statements.
238
Exhibit 37: Classified receipts and disbursements of the United States Government, exclusive of the principal of the public debt, by months, from
Apr. G, 1917, to Oct. 31, 1921, as published in daily Treasury statements .
240
Exhibit 38: Public debt of the United States; recapitulation of issues and
retirements, fiscal year 1921
243
Exhibit 39: Issues and retirements, prewar loans matured, fiscal year 1921.
247
Exhibit 40: Issues and retirements, debt bearing no interest, fiscal year
1921
,
247
Exhibit 41: Issues and retirements, prewar loans unmatured, fiscal year
1921
:
247
Exhibit 42: Issues and retirements, Treasury (war) savings securities, fiscal
year 1921
251
Exhibit 43: Issues and retirements, first Liberty loan of 1932-1947, fiscal
year 1921
:
252
Exhibit 44: Issues and retirements, second Liberty loan of 1927-1942, fiscal
year 1921
254
Exhibit 45: Issues and retirements, third Liberty loan of 1928, fiscal year
1921
255
Exhibit 46: Issues and retirements, fourth Liberty loan of 1933-1938, fiscal
. year 1921
256
Exhibit 47: Issues and retirements, Victory Liberty loan of 1922-1923, fiscal
year 1921
1
257
Exhibit 48: Liberty bonds and Victory notes, recapitulation of denominational exchanges
258
Exhibit 49: Conversion transactions, Nov. 15, 1917, to June 30, 1 9 2 1 . . . . .
260
Exhibit 50: Liberty loans outstanding, by denominations, June 30, 1921..
262
Exhibit 51: Liberty bonds, Victory notes, Treasury notes, and certificates
of indebtedness, securities account, showing by denominations the
amounts delivered, retired, and outstanding, fiscal year 1921
268
Exhibit 52: Liberty bonds, Victory notes. Treasury notes, and certificates
of indebtedness, deliveries, retirements, and outstanding, fiscal year.
1921
272




VI

CONTENTS.

REPORT OF THE SECRETARY OF THE TREAsuRY-^Continued.

Page.

Exhibit 53: Department Circular No. 225, receipt of Liberty bonds and
Victory notes for estate or inheritance taxes
276
Exhibit 54: Department Circular No. 239, Victory Liberty loan subscrip, tions in default296
Exhibit 55: Department Circular No. 215, Treasury savings securities,
series of 1921
297
Exhibit 56: Department Circular No. 216, agencies for the distribution and
sale of Treasury savings securities during 1921
308
Exhibit 57: Department'Circular No. 217, further regulations governing
Treasury savings certificates, series 1918, 1919, and 1920
316
Exhibit 58: Department Circular No. 220, surrender of war-savings certificates and stamps, series' of 1920; Treasury savings certificates, series of
1920, and thrift stamps held b y authorized agents and sales stations . . . . ' 323
-Exhibit 59: Department Circular No. 149 (revised). Treasury savings certificates
.*
•
327
Exhibits 60 to 66, inclusive: Department Circulars Nos. 213, 219, 221, 223,
224, 226, and 228, discontinuance of subtreasuries
' . . . . 333-339
Exhibit 67:. Department Circular No. 230, laws and regulations governing
the recognition of attorneys and agents and other persons representing
claimants before the Treasury Department and offices thereof
340
Exhibit 68: Letter of Secretary of the Treasury Apr. 30, 1921, to the chairman of the Committee on Ways and Means of the House of Representatives
349
Exhibit 69: Revision of internal taxes—statement of Secretary Mellon
before the Committee on Ways and Means, Aug. 4, 1921
362
Exhibit 70: Summary of statement b y the Secretary of the Treasury for
the Committee on Ways and Means
363
Exhibit 71: Letter of Secretary of the Treasury of Aug. 10, 1921, to Committee on Ways and Means
369
Exhibit 72: Statement, the White House, relative to internal taxation, Aug.
13,1921
372
Exhibit 73: Number of employees-retired under act of May 22, 1920, and
total annual compensation received by such employees at the time of
retirement
373
Exhibit 74: Number of employees in Treasury Department, by months,
from October, 1920, to October, 1921, inclusive
374
Exhibit 75: Letter of Secretary of the Treasury Sept. 30, 1921, to Hon.
Tasker L. Oddie on the gold bonus bill
376
Exhibit 76: Letter of Secretary of the Treasury to Hon. Louis T. McFadden with respect to proposed constitutional amendment to restrict
the issue of tax-exempt securities
379
Exhibit 77: Department Circular No. 244, supervision of bureaus and offices
of the Treasury Department and divisions of the office of the Secretary of
the Treasury by the Under Secretary of the Treasury and the Assistant
Secretaries of the Treasury
381
Exhibit"78: Classified statement of general sources of internal revenue, 1863
to 1921, inclusive
383
Abstracts of reports of bureaus and divisions.
Treasurer of the United States
391
Comptroller of the Currency
394
. Number of national banks reporting, loans, cash in vault, total deposits, etc., June 30, 1920 and 1921
- 397
Banks under State supervision
398
All reporting banks in the United States
398
Number of national banks organized, consolidated under act of Nov.
7, 1918, etc., June 30, 1921
."
402
Mint Service
,
403^
Operations of the mints and assay offices
403""
Special coin issues
406
Stock of coin and bullion in the United States
406
Production of gold and silver
406
Industrial arts
406
Export of gold coin
407
Appropriations, expenses, and income
407
Deposits, income, expenses, and employees
409




CONTENTS.
R E P O R T OF THE SECRETARY OF THE TREASURY—Continued.

Bureau of Internal Revenue
Cost of administration
Income and profits, taxes
'.
Committee on Appeals and Review :
Sales taxes
Capital-stock tax
Estate tax
Child-labor tax
Tobacco.
•. Oleomargarine
Collection field service
..'
Solicitor's Office, Civil Diyision
Penal Division
National prohibition
.. Bureau and field personnel
Bureau:>of War Risk Insurance
Marine and Seamen's Division
Allotment and Allowance Division.
Insurance Division
Compensation and Insurance Claims Division
^
Medical Di vision
Legal Division
Finance Division
Mail section
Contact service section
Personnel.
Bureau of Engraving and Printing
Customs
^ Office of the Supervising Architect
B uildings
Statement of claims filed under act of Congress approved Aug. 25,1919,
etcStatement of appropriations
Statement of classification of buildings by titles, showing expenditure
in each class, etc
•
Public Health Service
Scientific Research Division
Division of Domestic (Interstate) Quarantine
Division of Foreign and Insular Quarantine and Immigration'.
Division of Sanitary Reports and Statistics
Division of Marine Hospitals and Relief
Division of Personnel and Accounts
:
»
Division of Venereal Diseases
General inspection service
Educational section
Chief clerk's office
Purveving service
.'
Coast Guard. -\
Ice patrol to promote safety at sea
. Winter cruising
Cruises in northern waters
'
Anchorage and movem.ents of vessels
Florida coast patrol
Removal of derelicts
Coastal communication
Aviation
Recruiting
:
Coast Guard A cademy
Coast Guard r.epair depot.
Promotion in commissioned grades
Discipline
New vessels
Stations
.Enforcement of customs laws
Other activities




VII
Page.

409
410
411
411
411
412
412
412
412
412
413
413
413
413
414
414
414
416417
421
425427
429
431
431
432
432
433
435436
441
442
445446.
446
447
447
448
449'
450
451
451
452
452
453
453
455456
456
457
458'
458
458
459
459'
460*
460*
460
461
461
461
462
462

VIII

CONTENTS.

H E P O R T OF THE SECRETARY OF THE TREASURY—Continued.

Coast Guard—Continued.
- Page.
Repairs and improvements to vessels and stations
:
462
Award of life-saving medals
463
Loans and Currency
"465
Interest-bearing debt of the United States, changes during fiscal year
1921
1
466
Interest on registered bonds and notes ^ and registered certificates of
indebtedness
466
Insular and District of Columbia loans, changes during year
467
Circulation...'
468
Paper custody
469
Custody of Federal reserve notes, series 1914 and 1918
469
War loan registered issues and interest payments, fiscal year 1921
470
Claims of lost, stolen, mutilated, or destroyed interest-bearing securities, fiscal year 1921
472
Register of the Treasury
o
472.
Retired securities received, examined, and filed in the Register's
Office, fiscal j^ear 1921
475
Division of Deposits
476
Division of Bookkeeping and Warrants
477
Warrants issued during the fiscal year 1921
478
General fund
".
479
Public moneys
480
Fiscal officers' accounts
480
Alien Property Custodian account
• 480
Purchase of farm loan bonds
480
Civil service retirement and disability fund
481
•Secret Service Division
481
Division of Printing and Stationery.
4,^2
Printing and binding
482
Stationery.
484
Postage and materials for bookbinder
, . ' 485
Dej)artment advertising
485
Disbmsing clerk
486
'General Supply Committee
487
Tables accompanying the report on the finances.
Table A.—Statement of the outstanding principal of the public debt of
the United States June 30, 1 9 2 1 . . . :
Table B.—Statement of the outstanding principal of the public debt of
the United States on the 1st of July of each year from 1856
to 1921, inclusive
:
•.'...
Table C.—Statement of the issue and redemption of loans and Treasury
notes, and of deposits and redemptions in bank note account,
fiscal year 1921
Table D.—Population, ordinary receipts, and- disbursements of the Government from 1840 to 1921, exclusive of postal, and per
capita on receipts and per capita on disbursements
T a b l e E.—Statement showing ordinary receipts and disbursements of the
Government b y fiscal years; net gold and available cash in
the Treasmy at the end of each fiscal year, and imports and
exports of gold from 1897 to 1921, inclusive
Table F.—Statement of balance in general fund of Treasmy, including
gold reserve, by calendar years from 1791 to 1842 and by fiscal years from 1843 to 1921
Table G.—Receipts and disbursements of the United States
Table H.—Internal and customs receipts and expenses of collecting, from
1858 to 1921
Table I.—Statement of coin and paper circulation of the United States
from 1860 to 1921, inclusive, and amount of circulation per
capita
Table J.—Collectiohs, expenses, and average number of persons employed
in the Internal Revenue Service, fiscal year 1921
Table K.—Statement of notes, bonds, and otlier obligations received and
issued by office of Secretary of Treasury from July 1, 1920,
to June 30, 1921




497
505
507
508

510
511"
512
525
52/
528
529.

CONTENTS.
R E P O R T OF THE T R E A S U R E R :

IX
Page.

Receipts and disbursements for 1920 and 1921
535
Panama Canal
536
Receipts and disbursements on account of the Post Office Department
537
Transactions in the public debt
538
Net earnings derived from Federal reserve b a n k s . . . . :
538
Payment of obligations of foreign Governments
538
Cumulative sinlang fund
539
Currency issued and redeemed
539
Payment of interest on registered bonds of the United States
540 •
Reserve and trust funds
540
- Redemption of notes in gold
540
State of the Treasury, general fund—cash in the vaults
541
Net available cash balance, 1914 to 1921
542
Gold in Treasury from 1914
-.
542
Bonds held as security for bank circulation and deposits
542 .
Bonds held as security for postal-savings funds
544
Postal-savings bonds and investments therein
544
Withdrawal of bonds to secure circulation.
'.
544
Lawful money deposits for retirement of bank circulation
•
545
Depositaries of the United States
:.
545
Public moneys in depositary banks
545
Interest on public moneys held in depositary banks
, 546
Gold fund. Federal Reserve Board
547
Monetary stock, 1920 and 1921
547
Ratio of gold to total stock of money
548
Money in circulation
"
548
Circulation and population
'.
:..^.
548
Paper currency issued directly by the Government
:
549
United States notes
549
Treasury notes of 1890
v
550
Gold certificates
551
Silver certificates
551
Changes in denominations during fiscal year 1921
552
Pieces of United States paper currency outstanding.;
552
Cost of paper currency
'.
552
Average life of paper currency
553
Paper currency prepared for issue and amount issued
554
Paper currency held in the reserve vault
555
Paper currency redeemed
555
Standard silver dollars
-. 556
' Subsidiary silver coin
.'
556
Minor coin
- - • -:
^^Q
Deposits of gold bullion at mints and assay offices, 1919, 1920, and 1 9 2 1 . . .
559
Shipments of currency from Washington, 1920 and 1921
"559
- Recoinage, 1920 and 1921
559
Redemption of Federal reserve and national currency
560
Special trust funds and changes therein during the fiscal year
561
District of Columbia sinking fund
564
Discontinuance of subtreasuries
564
General account of the Treasurer of the United States
564
Tables accompanying the report of the Treasurer.
No. 1.—General distribution of the assets and liabilities of the Treasury,
June 30, 1921
No. 2.—Available assets and net liabilities of the Treasury at the close
of June, 1920 and 1921
'
No. 3.—Distribution of the General Treasury balance, June 30, 1921
No. 4.—Estimated stock of gold coin and bullion, the amount in the Treasury, and the amount in circulation at the end of each month,
from January, 1919
No. 5.—Estimated stock of silver coin, the amount in the Treasury, and
the amount in circulation at the end of each month, from January, 1919. Also silver, other than stock, held in the Treasury.
No. 6.—United States notes, Treasury notes, Federal reserve notes, and
national-bank notes outstanding,'in the Treasury, and in circulation at the end of each month, fr om January, 1919




567
568
569
569
571
573

X

CONTENTS.

R E P O R T OP THE TREASURER—Continued.

No. 7.—Gold certificates and silvei: certificates outstanding, in the Treasury, and in circulation at the end of each month, from January,
1919
No. 8.—Estimated stock of all kinds of money at the end of each fiscal
. year, from 1880 to 1921
No. 9.—Estimated amount of all kinds of money in circulation annually
from 1896 to 1921
No. 10.—Assets of the Treasury other than gold, silver, notes, and pertificates at the end of each month, from January, 1919
No. 11.—Assets of the Treasury at the end of each month, from January,
1919
. No. 12.—Liabilities of the Treasury at the end of each month, from January, 1919
No. 13.-7United States notes of each denomination issued, redeemed, and
outstanding at the close of each fiscal year, from 1918
No. 14.—Treasury notes of 1890 of each denomination issued, redeemed,
and outstanding at the close of each fiscal year, from 1918
No. 15.^-Gold certificates of each denomination issued, redeemed, and out. standing at the close of each fiscal year, from 1919
No. 16.—Silver certificates of each denomination issued, redeemed, and outstanding at the close of each fiscal year, from 1919
No. 17.—Amount of United States notes. Treasury notes, gold and silver
certificates of each denomination issued, redeemed, and outstanding at the close of each fiscal year, from 1918
No. 18.—Old demand notes of each denomination issued, redeemed, and
outstanding June 30, 1921
No. 19.—Fractional currency of each denomination issued, redeemed, and
outstanding June 30, 1921
No. 20.—Compound-interest notes of each denomination issued, redeemed,
and outstanding June 30, 1921
No. 21.—One and two year notes of each denomination issued, redeemed,
and outstanding June 30, 1921
No. 22.—United States notes and Treasury notes redeemed in gold, from
1879, and imports and exports of gold during each fiscal year,
from 1916..'
No. 23.—Balance in the Treasury, amount in Treasury offices, and amount
in depositary banks, from 1789 to 1921
No. 24.—Federal reserve and national banks designated depositaries of
public moneys, with the balance held June 30, 1921
No. 25.—Number of banks wdth semiannual duty levied, by fiscal years,
and number of depositaries with bonds as security, by fiscal
years
,
No. 26.—Seven-thirty notes issued, redeemed, and outstanding June 30,
1921
:
:
No. 27.—Refunding certificates, act of February 26,1879, issued, redeemed,
and outstanding June 30, 1 9 2 1 . . . . '
No. 28.—Checks issued by the Treasurer for interest on registered bonds
during the fiscal year 1921
No. 29.—Interest on 3.65 p e r c e n t bonds of the Districtof Columbia paid
duiing the fiscal year 1921
No. 30.—Coupons from United States bonds and interest notes paid during
the fiscal year .1921, classified by loans
No. 31.—Public debt'at the close of June, 1920 and 1921, and changes during the year
No. 32.—Checks drawn by the Secretary and paid by the Treasurer for
interest on registered bonds of the United States during the
fiscal year 1921
No. 33.—^Money deposited in the Treasury each month of the fiscal year
1921 for the redemption of national-bank notes
No. 34.—Amount of currency counted into the cash of the National Bank
Redemption Agency and redeemed notes delivered, by fiscal
years, from 1915
No. 35.—Currency received for redemj)tion by the National Bank Redemption Agency from the principal cities and other places, by fiscal
• years, from 1915, in thousands of dollars
No. 36.—^Mode of payment for currency redeemed at the National Bank
Redemption Agency, by fiscal years, from 1915




Page.

575
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580
580
581
581.
582
583'
584
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586
586
586
587
587
590
592
592
592
592
592
593
593
595
595
596
597
597

.

CONTENTS.

H E P O R T OF THE TREASURER—Continued.

.

XI
.

No. 37.—Deposits, redemptions, assessments for expenses, and transfers
and repayments on account of the 5 per cent redemption fund
of national banks, by fiscal years, from 1915
No. 38.—Deposits, redemptions, and transfers and repayments on account
of the retirement of circulation, by fiscal years, from 1915
.
No. 39.—Expenses incurred in the redemption of national and Federal
reserve currency, by fiscal years, from 1915
,...
No. 40.—General cash account of the National Bank Redemption Agency
for the fiscal year 1921 and from July 1,1874
No. 41.—Average amount of national-bank notes outstanding and the redemption, by fiscal years, from 1875 (the first year of the
agency)
No! 42.—Federal reserve notes, canceled and uncanceled, forwarded b y
Federal reserve banks and branches, counted and delivered to
the Comptroller of the Currency for credit of Federal reserve
agents
No. 43.—Changes during the fiscal year 1921 in the force employed in the
Treasurer's office

Page.

597
598
598
599
599

599
600

R,EPORT OF THE DIRECTOR OF THE M I N T :

Operations of t h e mints and assay pffices
....'........
.601
Institutions of t h e m i n t service
601
Coin demand
601
Gold operations
602
Silver operations
,
•
602
Deposits of gold and silver
^ 603
Subtreasury functions acquired
603
Explosion i n Wall Street
604
Refineries
604
Coinage.
604
Special coin issues
604
Stock of coin and bullion i n t h e United States
605
Production of gold and silver
605
Industrial arts
605
Export of gold c o i n . . . . . . . .
605
Estimates for t h e fiscal year 1923
605
Appropriations, expenses, and income
605
Additions and improvements.
./
»
606
Philadelphia Mint
606
San Francisco Mint
..
607
Denver Mint
610
New York Assay Office
:
610
Income and expenses of t h e fiscal year 1921
610
Deposits, income, expenses, and employees, b y institutions, fiscal year
1921....
612
Details of coinage
612
Deposits of foreign gold bullion and coin
614
Deposits of foreign silver bullion and coin
614
Issue of fine gold bars for gold coin and gold bullion
-.''....
615
Balances, receipts, and disbursements of gold bullion
616
Purchase of minor coinage metal for use i n domestic coinage
617
Purchase of minor coinage blanks prepared for coinage.
617
Distribution of minor coins
618
Minor coins outstanding
618
Operations of the assay departments
,
618
•Operations of t h e melting and refining and of t h e coining departments,
fiscal year 1921
619
Gold bullion
1
620
Nickel coinage metal
621
Refining operations
:.
622
Ingot melts m a d e . . . :
622
Fineness of melts for gold and silver ingots
623
•Commercial and certificate bars manufactured
,
623
Ingots operated upon b y coining departments and percentage of coin produced-. . ,
624
Percentage of good coin produced to pieces struck
:
624
Sweep cellar operations
625




XII

CONTENTS.

I I E P O R T OF THE DIRECTOR OF THE M I N T — C o n t i n u e d .

Bullion gains and losses
Wastage and loss on sale of sweeps
Engraving department, Philadelphia Mint
Medals manufactured
Medals sold
Progress of the numismatic collection
Employees, Mint Service
Visitors, Philadelphia Mint
Work of the minor assay offices
Ore assays..:
Gold receipts at Seattle."
•
Laboratory of t h e Bureau of t h e Mint
Assay Commission's annual test of coin
Tables, Report of Director of the Mint

Page.

625
626
626
627
627
627
628
628
628
629
629
630
631
632

'

,
.•

R E P O R T OP THE R E G I S T E R :

Coupon bonds prepared for issue
Registered securities issued
Bonds redeemed
•.
'
Bonds and notes purchased by the Secretary
Bonds and notes received on account of estate and inheritance taxes
Treasury certificates of indebtedness. . . . :
War savings securities
Paid interest coupons
Total securities paid
'.
Securities received for credit to fiscal agency account
Exchange of temporary bonds for permanent bonds
Registered bonds retired
Total securities received for all accounts
Destruction of retired securities
Securities i n t h e
files.
Progress since reorganization of public-debt service
Allocation of functions in the Register's office
Office force
•
Summar.y of securities received, examined, and retired
Statistical statements
.'

-..

670
670
670
670
670
670
671
671
671
671
672
672
672
672
673
673
673
674
675
677

R E P O R T OF THE COMPTROLLER OF THE CURRENCY:

Submission of report
:
Legislation recommended:
National-bank charters
Perpetual charters
Consolidation of State m t h national banks
Bank branches
Safe deposit company stock
Penalty for embezzlement, etc
Directors' reports to shareholders
Reports of condition
1
Appointment of national-bank examiners and assistants
Legislation previously recommended
Condition of national banks at the date of each call during the report year.
Condition of national banks, September 6, 1921:
iElesources—
Loans and discounts
Overdrafts
XJnited States Government securities
Other bonds, stocks, and securities, etc
,.
Bank premises and other real estate owned
Cash in vault.
.,
'
Due from banks and bankers.
Exchanges for clearing house
:...
All other assets
Liabilities—
Capital stock, surplus, and undivided profits
"
National-bank notes outstanding
Deposits
Bonds and borrowed money
Bank acceptances
:
Aggregate resources and liabilities
,




769
773
776
776
777
777
778
778
~778
778
779
779
781
781
782
782
782
782
782
782
782
783
783
783
783
784
784

CONTENTS.
R E P O R T OF THE COMPTROLLER OF THE CURRENCY-^COUtinued.

Principal items of national-bank resources and liabilities on September 6,
1921, arranged by States
Condition of national banks, June 30, 1921
•
Summary of reports of condition of national banks in the United States,
Alaska, and Hawaii, at close of business, June 30,1921
Loans and discounts by national banks in reserve cities and States
Loans and discounts b y national banks, character of. June 30, 1921
Comparative statement of loans and discounts by national banks during
the past three fiscal years
:
Real estate loans by national banks in reserve cities and States, June 30,,
1921
' Investments of national banks, June 30, 1921.
United States, domestic and foreign bonds and securities, etc., held b y national banks in reserve cities and States, June 30, 1921
United States Government securities held by national banks in reserve
. cities and States, June 30, 1921
.*
Savings deposits and depositors in national banks in reserve cities and
States, June 30, 1921
Relation of capital of national banks to deposits, etc
•
Percentage of principal items of assets and liabilities of national banks at
date of fall report, 1914 to 1921, inclusive
.---.--Progress of national banks since passage of Federal reserve act, principal
items of assets and liabilities, 1913-1921
Earnings, expenses, and dividends of national banks, years ended June 30,
1920-1921
Earnings, expenses, and dividends of national banks, in reserve cities and
States, year ended June 30, 1921
\
Earnings, expenses, and dividends of national banks b y Federal reserve districts, year ended June 30,1921
National-bank investments in United States Government securities and
otherbonds and securities, etc., loans and discounts (including rediscounts), and losses charged off on account of bonds and securities, and
loans and discounts, years ended June 30, 1918 to 1921, inclusive
Number of national banks, capital, surplus, dividends, and net addition to profits, etc., years ended June 30, 1914 to 1921
•.
Nonborrowing national banks, b y States, April 28, 1921
Shareholders and shares of stock of national banks, in reserve cities and
states
National banks classified according to capital stock in reserve cities and
States, September 6, 1921
Dormant deposit accounts in national banks, February 21, 1921
National-bank examiners
Assessments on national banks to pay salaries and expenses of nationalbank examiners, year ended October 31, 1921
Expenditures of office of Comptroller of Currency, fiscal year ended June
30, 1921
Bank officers and employees convicted of criminal ^dolations of law during
year ended October 31,1921
'
:
National-bank failures
-.
Forfeiture of charter
National-bank charters applied for, granted, and refused
Increases and reductions of capital stock of national banks
:
Liquidation of national banks
Consolidation of national banks
Growth i n number and capital of national banks
National banks organized since 1900
State banks converted or reorganized into national banking associations
since 1900
Organization and liquidation of national banks
Number and authorized capital of national banks chartered and the number and capital stock of banks closed in each year ended October 31,
since 1913, with yearly increase or decrease
Number of, national banks organized, consolidated, under act of November 7, 1918, insolvent, in voluntary liqiddation, and in operation, October 31, 1921
,
.National banks chartered dming year ended October 31, 1921




Xlir
Page.

785
787
787
788'
794
794
795797
798803
808.
810"
810
811
814
815>
824

826'
826
826
830
836
850'
851
853
854
854
857
859'
860861
861
861
862
863
863
863864
864865

XIV

CONTENTS.

R E P O R T OF THE COMPTROLLER OF THE CuRRENCY-^Continued.

Page.

National banks organized, failed, and reported in voluntary liquidation
during year ended October 31, 1921
870
Number and classification of national banks chartered during year ended
October 31, 1921.
871
Conversions of State banks and primary organizations as national banks
since 1900
871
Number and capital of State banks converted into national banking associations in each State and Territory, from 1863 to October 31,1921. . . . 872
Expirations and extensions of charters of national banks
872
Number of national banks in each State, t h e charters of which were extended under the act of July 12, 1882, to October 31, 1921
873
Number of national banks in each State, the charters of which were reextended under the act of July 12, 1882, as amended April 12, 1902, to October 31,1921
873
Changes of title of national banks.
873
Changes of title incident to consolidations of national banks
874
Number of national banks increasing their capital with amount of increase
monthly, for years ended October 31, 1920 and 1921
875
Domestic branches of national banks
875
Foreign branches of national banks
r
877
Condition of foreign branches of National City Bank, New York, N. Y.,
and First National Bank, Boston, Mass., June 30,1921
878
Interest-bearing debt of the United States
882
United States bonds on deposit as security for circulation and deposits of
such bonds made during t h e past year
883
Profit on national-bank circulation
883
Monthly range of prices of United States bonds
884
Redemption of national and Federal reserve bank circulating notes
. 884
Amount of currency received for redemption monthly, November-l, 1920,
to October 31, 1921
885
National-bank circulation issued and retired yearly from Noveinber 1,1913,
to October 31, 1920; amount issued and retired quarterly duiing vear
ended October 31, 1921; and grand total for 8-year period, 1914-1921.... 886
Denominations of national-bank circulation outstanding,j October 31,1921.
886
National-bank circulation in vaults of Currency Bureau at close of business, October 31, 1921
886
National-bank currency issued to banks from November 1,1920, to October
31, 1921
887
National-bank currency, denominations, received from Bureau of Engraving and Printing and issueci to banks, year ended October 31,1921
. 887
Federal Reserve System—
Development of, by years, as shown by statements of Federal Reserve Board during latter part of November of each year since 1914
to 1920 and on October 26, 1921
888
Condition of the 12 Federal reserve banks at the close of each month
from January 25, 1918, to October 26,1921
889
Percentage of bills discounted secured by United States Government .
obligations to the total bills discounted and purchased b y Federal
reserve banks, at the end of each moiith, year ended October 31,
1921
' 890
Federal reserve bank discount rates
890
Federal reserve notes—
Out^standing, secured by e:old, commercial and other eligible paper, December 3, 1920, to October 26, 1921
890
Vault balance, October 31, 1921
892
Issued, retired, and outstanding, October 31, 1921
892
. Received for destruction
•.
892
Federal reserve bank' notes—
Denominations issued to Federal reserve banks upon deposit of securities under provisions of the act of April 23, 1918.
'
893
United States bonds and special certificates of indebtedness deposited
by Federal reserye banks for circulation, amount, ^\dthdrawn by
banks reducing circulation during each month, year ended October .
31 1921
893
Vault balance, October s i , 1921
894




CONTENTS.

XV

R E P O R T OF THE COMPTROLLER OF THE CURRENCY—Continued.

Federal reserve bank notes—Continued.
.
Issued, redeemed, and outstanding October 31, 1921
Denominations printed, year ended October 31, 1921
Denominations issued, year ended October 31, 1921
'.
National bank notes, Federal reserve notes, and Federal reserve bank
notes, printed^ ahd delivered by Bureau of Engraving and Printing,
issued, retired,' etc., year ended October 31,1921
Monetary stocks in the principal countries of the world, end of calendar
year 1920
:;
:
Banking power of the United States
".
'.
Money in the United States
Stock of money in the United States, in the Treasury, reporting banks.
Federal reserve banks, and in general circulation
Rates for inoney in New York
Rates for sterling bills
New York Clearing House
•
Cleaiing house associations in t h e U n i t e d States, comparison of transactions
of, in the 12 Federal reserve bank cities and in other cities, etc., years
ended September 30,1920 and 1921
Resources of the central banks in foreign countries
.
—
Imports and "exports of merchandise, gold and silver, calendar years 1914 to
1920 and from January to October 31,1921
Banks other than national—
State (commercial) banks, condition of, J u n e 30, 1921
:.
Loan and trust companies, condition of, June 30. 1921.
Principal items of resources and liabilities of loan and ti-ust companies
-on or about June 30 of each year from 1914 to 1921, inclusive
Stock savings banks, condition of, June 30, 1921
Stock savings banks, number of depositors, aggregate deposits, and
average deposit account, b y States, June 30,1920 and 1921
Mutual savings banks, condition of, June 30,1921
Unanticipated conditions revealed m t h respect to number of depositors and volume of deposits in m u t u a l savings banks, year ended
June 30, 1921
:
Mutual savings banks, number of depositors, aggregate deposits,
and average deposit account, by States, June 30,1920 and 1921
Mutual savings banks, number of depositors, total deposits, and
average amount due each depositor, years ended June 30,1914 to 1921.
Mutual and stock savings banks, number of depositors, individual deposits and average amount due each depositor, years ended J u n e
30, 1914 to 1921
;•
:
Private banks, condition of, June 30, 1921
All reporting (State, savings, private banks and loan and trust companies), condition of, June 30, 1921
Resources and liabilities of each class of reporting banks, June 30,1921.
Principalitems of resources and liabilities of, in 5-year period, 19171921
"..
Condition of, in each State and island possession, June 30, 1921
All reporting banks (including national)—
Principal items of .resources and liabilities, June 30, 1921 and 1920....
Resources and liabilities of, in each State and island possession, June
30, 1921
Summary of combined returns, June 30, 1921
Increase in resource's of, in 7-year period — . —
Resources and liabilities of, 1916-1921
National and Federal reserve banks. State, savings, private banks, and
loan and trust companies, June 30,1921
Individual deposits in all reporting banks, classification of, June 30,1921..
Cash in all reporting banks, classification of, June 30, 1921
' Building and loan associations in the United States—
Statistics relative to, in each State, 1920-1921
Progress of, since 1893
Building and loan associations in the District of Columbia, statistics relative
to
^
::
:........
Banks in the District of Columbia, statistics relative to
Earnings, expenses, and dividends of savings banks and trust companies in
the District of Columbia, years ended June 30, 1920 Rnd 1921
70073—FI.1921
II




I'age.
894
894
- 894
894
894
898
898
899
900
901
902
902
903
904
905
907
909
909
911
912
913
915
916
916
916
918
920
.921
921
930.
930
936
937
939
940
941
941
942
943
944
944
945

XVI

~

CONTENTS.

R E PORJ OF THE COMPTROLLER, OF THE CURRENCY—Continued.

.

Page.

United States Postal Savings System, statistics relative to, years ended June
30, 1920-1921
Savings banks in the principal countries of the world
Guaranty of bank deposits, data relative to, in Oklahoma, Texas, Kansas,
Nebraska, North Dakota, Washington, South Dakota, and Mississippi...
FederaL Farm Loan System—
Statement of condition of the 12 Federal land banks, close of business, October 31, 1921
.'
:
Farm-loan bonds, statement of
•
Joint-stock land iDanks, condition of, October 31, 1921
Conclusion

946
952
955
961
963
963
964

R E P O R T OF THE COMMISSIONER OF I N T E R N A L R E V E N U E :

Introduction
:
Collections
Cost of adininistration
Inadequate housing of bureau
Income Tax Unit
Work accomplished
'
Personnel
Field service.
•.
Statistical service
-.
Information service
Claims
Changes and improvements in organization and procedure
Statenient of aims and necessities...
Committee on Appeals and Review
: . . .*
Estate, Capital-Stock, and Child-Labor Tax Unit
Personnel
'
Taxes collected
•.'.
:
Estate Tax Division.
Capital-Stock Tax Division
Child-Labor Tax Division
Sales Tax Unit
Tobacco
Miscellaneous taxes
Oleomargarine
Adulterated butter. .•
Renovated.butter
Mixed
flour
Collection field service
Additional collection districts
Accounting s y s t e m . . . •
Internal-revenue manual
Correspondence study courses.
•
Number of collectors' employees
Field work
Accounts Unit
:
Prohibition Unit
'.
Office of Counsel and Legal Division
Prohibition field force
Narcotic field force
.'
Permit Division
:
Industrial Alcohol^and Chemical Division
Division of Audit and Statistics
.Personnel
Solicitor of Internal Revenue
Conference committee
cLegislation
Interpretative Division I
Interpretative Division I I
Civil Division
:
Penal Division
Administrative Division
Statistical surnmary of work
Suits and prosecutions
Stamps
1
Bureau and field personnel
Tables.........
,




-....

,...

,.
,..-..
--,

,

967
967
• 969
969
970
970
971
971
971
972
972
972
974
974
975
976
976
976
977
978
979
981
982
982
983
983
984
984
984
985
985
985
985
986
986
987
987
988
989
989'
-990
992
995
995
995
996
996
997
997
999
1000
1000
1001
1001
1002
1003

SECRETARIES OF THE TREASURY AND PRESIDENTS UNDER
WHOM THEY SERVED.
NOTE.—Robert Morris, the first financial officer ofthe Government, was Superintendent of Finance from
1781 to 1784. Upon the resignation of Morris, the powers conferred upon him were transferred to the "Board
of the Treasury.", Those who finally accepted positions on this board were John Lewis Gervais, Samuel
Osgood, and Walter Livingston. The board served until Hamilton assumed oflice in 1789.
Secretaries of Treasury.

Presidents.

Term of service.
From—

Washington.
Adams.
Jefferson..
Madison.

Monroe...
Adams, J.
Jackson...

VanBuren.
Harrison
Tyler...:...

Polk.
Taylor...
FiUmore..
Pierce

Alexander.Hamilton, New York
Oliver Wolcotf, Coimecticut
Oliver Wolcott, Connecticut
Samuel Dexter, Massachusetts
Samuel Dexter, Massachusetts
Albert Gallatin, Pennsylvania
Albert Gallatin, Pennsylvaniai
George W. Campbell, Tennessee
Alexander J. Dallas, Pennsylvania..
Wm. H. Crawford, Georgia
Wm. H. Crawford, Georgia
Richard Rush, Pennsylvanias
Samuel D. Ingham, Pennsylvania 3..
Louis McLane, Delaware
Wm. J. Duane, Pennsylvania
Roger B. Taney, Maryland ^
Levi Woodbury, New Hampshire..
Levi Woodbury, New Hampshire ^.
Thomas Ewing, Ohio
Thomas Ewing, Ohio ^
Walter Forward, Pennsylvania ^
John C. Spencer, New Yorks
Geo. M. Bibb, Kentucky
Geo. M. Bibb, Kentucky
Robt. J. Walker, Mississippi3...:
Wm. M. Meredith, Pennsylvania...
Wm. M. Meredith, Pennsylvania...
Thos. Corwin, Ohio
James Guthrie, Kentucky

Sept.
Feb.
Mar.
Jan.
Mar.
May
Mar.
Feb.

11,1789
3,1795
4,1797
1,1801
4,1801
14,1801
4,1809
9,1814
6,1814

Oct.
Oct. 22,1816
Mar.' 4,1817
Mar. 7,1825
Mar. 6,1829
Aug. 8,1831
May 29,1833
S e p t . 23,1833
J u l y 1,1834
Mar. ' 4,1837
Mar. 6,1841
A p r . 5,1841
S e p t . 13,1841
Mar. 8,1843
J u l y 4,1844
Mar. 5,1845
Mar. 8,1845
Mar. 8,1849
J u l y 10,1850
J u l y 23,1850
Mar. 7,1853

ToJ a n . 31, 1795
Mar. 3, 1797
D e c . 3 1 , 1800
Mar. 3, 1801
May 13, 1801
Mar. 3, 1809
A p r . 17, 1813
Oct. 5, 1814
Oct. 21, 1816
Mar. 3, 1817
Mar. 6, 1825
Mar. 5, 1829
J u n e 20, 1831
May 28, 1833
Sept.22, 1833'
J u n e 25, 1834
Mar. 3, 1837
Mar. 3, 1841
A p r . 4, 1841
S e p t . l l , 1841
Mar. 1, 1843
May 2, 1844
M a r . 4, 1845
Mar. 7, 1845
Mar. 5, 1849
J u l y 9, 1850
J u l y 22, 1850
Mar. 6, 1853
Mar. 6, 1857

. 1 While holding the oflice of Secretary of the Treasury, Gallatin, was commissioned envoy extraordinary
and minister plenipotentiary April 17,1813, with John Quincy Adams and James A. Bayard, to negotiate
peace with Great Britain. On February 9,1814, his seat as Secretar;^^ of the Treasury was declared vacant
because of his absence in Europe. William Jones, of Pennsylvania (Secretary of the Navy), acted ad
interim Secretary ofthe Treasury from April 21, 1813, to February 9, 1814.
2 Rush was nominated March 5,1825, confirmed and commissioned March 7,1825, but did not enter upon
the discharge of his duties until August 1, 1825. Samuel L. Southard, of New Jersey (Secretary of the
Navy), served as ad interim Secretary of the Treasury from March 7 to July 31, 1825.
8 Asbury Dickens (Chief Clerk), ad interim Secretary of the Treasury June 21 to August 7, 1831.
* McGlintock Young (Chief Clerk), ad interim Secretary of the Treasury from June 25 to 30, 1834.
5 McCIintock Young (Chief Clerk), ad interim Secretary of the Treasury from March 4 to 5, 1841.
6 McCIintock Young (Chie'f Clerk), ad interim Septernber 13, 1841.
^ McCIintock Young (Chief Clerk), ad interim March 1 to 7, 1843.
8 Spencer resigned as Secretary ofthe Treasury May 2,1844; McCIintock Young (Chief Clerk), ad interim
from May 2 to July 3,1844.
»McCIintock Young (ChiefClerk), ad interim March 6 to 7,1849.
XVII




XVIII

SECRETARIES OF ' T H E TREASURY.

Secretaries of the Treasury, and Presidents under lohom they served—Continued.
Presidents.

Buchanan.

Lincoln.

Johnson.
Grant...

Garfield.
Arthur..

Cleveland.

Harrison, Benj.

Cleveland.
McKinley.
Roosevelt.

Taft....
Wilson.

Harding.

Secretaries of Treasury.

Howell Cobb, Georgia ^
o
Philip F. Thomas, Maryland.
John A. Dix, New York
Salmon P. Chase, Ohio ^
Wm. P. Fessenden, Maine 1
2
Hugh McCulloch, Indiana
'....
Hugh McCulloch, Indiana i3
Geo. S. Boutwell, Massachusetts
Wm. A. Richardson, Massachusetts.
Benj. H. Bristow, Kentucky ^
^
Lot M. Morrill, Maine
•
Lot M. Morrill, Maine
John Sherman, Ohio ^^
Wm, Windom, Minnesota
'...
Wm. Windom, Miimesota
Chas. J. Folger, New York.ie
;...
•Walter Q. Gresham, Indiana
,
Hugh McCulloch, Indiana
Hugh McCulloch, Indiana
Daniel Manning, New York
Chas. S. Fairchild, New York
•...
Chas. S. Fairchild, New York
.•
Wm. Windom, Minnesota^'
Chas. Foster, Ohio. .•
Chas. Foster, Ohio
John G. Carlisle,. Kentucky
John G. Carlisle, Kentucky
Lyman J. (>age, Illinois
Lyman J. Gage, Illinois
L. M. Shaw, Iowa
'
.'...
George B. Cortelyou, New York
Frankhn MacVeagh, Illinois
W. G. McAdoo, New York
:.
Carter Glass, Virginia..:
......^
David F. Houston, Missouri
Andrew W. Mellon, Pennsylvania

Term of service.
From—
Mai-. 7,1857
Dec. 12.1860
Jan. 15.1861
Mar. 7,1861
July 5.1864
Mar. 9.1865
Apr. 16,186.5
Mar. 12,1869
Mar. 17,1873
June 4,1874
July 7.1876
Mar." 4.1877
Mar. 10,1877
Mar. 8,1881
Sept. 20,1881
Nov. 14,1881"
Sept. 25,1884
Oct. 31,1884
Mar. 4,1885

ToDec. 8,1860
Jan. 14,1861
Mar. 6,1861
June 30,1864
Mar. 3,1865
Apr. 15,1865
Mar. 3,1869
Mar. 16,1873
June 3,1874
June 20,1876
Mar. 3,1877

Mar 9,1877
Mar. 3,1881
Sept. 19,1881
Nov. 13,1881

Sept 4,1884
Oct. 30,1884
Mar. 3,1885
Mar. 7,1885
8,1885 Mar. 31,1887
1,1887 Mar. 3,1889
4,1889 Mar. 6,1889
7,1889 Jan. 29,1891
25,1891 Mar. 3,1893
4,1893 Mar. 6,1893
7,1893 Mar. 3,1897

Mar.
Apr.
Mar.
Mar.
Feb.
Mar.
Mar.
Mar. 4,1897
Mar. 6,1897
Sept. 15,1901
Feb. 1,1902
Mar. 4,1907
Mar. 8,1909
Mar. 6,1913
Dec. 16,1918
Feb. 2.1920
Mar. 4.1921

Mar. 5,1897
Sept.14,1901
Jan. 31,1902
Mar. 3,1907
Mar. 7,1909
Mar. 5,1913
Dec. 15,1918
Feb. 1,1920
Mar. 3,1921

^

10 Issac Toucy, of Connecticut (Secretary of the Navy), acted as Secretary of the Treasurv ad interim
December 10 to 12,1860.
11 George Harrington, District ofColumbia (Assistant Secretary), ad interim July 1 to 4,1864.
i» George Harrington (Assistant SecretarjO, ad interim March 4 to 8. 1865.
1 John F. Hartley, of Maine (Assistant Secretary), ad interim from March 5 to 11,1869.
3
i< Charles F. Conaut, of New Hampshire (Assistant Secretary), ad interim June 21 to 30 [July 6], 1876.
16 Henry E. French, of Massachusetts (Assistant Secretary), ad interim March 4 tb 7, 1881.
16 Charles E. Coon, of New York (Assistant Secretary), ad interim September 4 to 7, 1884; Henry F.'
French, of Massachusetts (Assistant Secretary), ad interim September 8 to 14, 1884; Charles E. Coon ad
interim September 15 to 24,1884.
17 A. B. .Nettleton, of Minnesota (Assistant Secretary), ad interim January 30 to February 24,1891.




ASSISTANT SECRETARIES OF THE TREASUKY.-

XIX

UNDERSECRETARIES OF THE TREASURY AND PRESIDENTS
AND SECRETARIES UNDER WHOM THEY SERVED.
President.

Harding

Secretary.

Undersecretary.!

Term of ser\ace.

°'Mellon.......... S. Parker Gilbert, jr., New Jersey

1 Office established act June 16,1921.

'

From—
July 1,1921

To-

'

ASSISTANTS TO THE SECRETARY OF THE TREASURY ^ AND
PRESIDENTS AND SECRETARIES UNDER WHOM THEY SERVED.
Presidents.

Secretaries.

Assistants to the Secretaries.

Term of service.

From—
Hamilton
Tfinch Gnxe, PftTiTiRylvania
Sept. 11,1789
Washington
Wilson.
. . . . McAdoo.. . . . . . . George R. Cooksey, District of Colum- Mar. 6,1917
. bia.
Glass.
Houston.

To—
May 8,1792
Mar. 4,1921

1 Office established Sept. 2, 1789; abolished act May 8, 1792; reestablished act Mar. 3, 1917. Appointed
by the Secretary.

ASSISTANT SECRETARIES OF THE TREASURY AND PRESIDENTS
AND SECRETARIES UNDER WHOM THEY SERVED.
Presidents.

Taylor

. *... .

Filmore
Pierce

Buchanan

Lincoln

Johnson
Lincoln

Johnson
Lincoln

-

Secretaries.

Meredith
Meredith.
Corwin.
Cor\vin
Guthrie.
Guthrie
Cobb.
Cobb:
Thomas.
Dix.
Chase
Fessenden.
McCulloch.
McCulloch.
Chase
Fessenden.
McCulloch.
McCulloch.
Fessenden

Term of service..

Assistant Secretaries.^

From—
Charles B. Penrose, Pennsylvania...^. Mar. 12,1849
Allp.TJ A , TTall, Pennsylvania.. . , , . , . - . Oct. 10,1849

Tc—
Oct. 9 1849
Nov. 15,1850

William L. Hodge, Tennessee

Nov. 16,1850

Mar. 13^1853

Peter G. Washington, District of Columbia.

Mar.

Philip Clayton, Georgia

George Harrington, District of Columbia.

4,1853

Mar. 13,1857

Mar. 13,18612

Mar. 12,1857

Jan. 16,1861

July 11,1865

•
Maunsell B. Field, New York

WilUam. E. Chandler, New Hampshire.

Mar. 18,1864.

Jan.

5,1865

June 15,1865

Nov, 30,1867

McCulloch.
Johnson
— McCulloch.
1 Office established act Mar. 3, 1849; appointed by the Secretary. Act Mar. 3, 1857, made the office
Presidential.
2 Act-Mar. 14, 1864, provides one additional Assistant Secretary.




XX

ASSISTANT SECRETARIES OF THE TREASURY.

Assistant Secretaries of the Treasury'and Presidents and Secretaries under whom they
served—Continued.
Presidents.

Secretaries.

Johnson
Grant

McCulloch
Boutwell.
Richardson.
Bristow.
Johnson
:
McCulloch......
Grant
Boutwell
Richardson
Bristow.
Bristow
Morrill.
Sherman.
Hayes
Bristow
Grant...
Morrill
Sherman.
Hayes
Windom.
Garfield ..
Windom.
Arthur ..
Folger. •
Gresham.
McCulloch.
Manning.
Cleveland
Sherman
Hayes
Sherman...
Sherman
Windom.
Garfield
Arthur. .Windom.
Folger.
Folger
^...
Folger
Gresham.
McCulloch. .
Cleveland....... Manning.
Manning
Manning
Manning
Fairchild.
Windom.
Harrison..
Cleveland
Fairchild
Windom.
Harrison
Windom
Windom
Windom
Foster.
Windom
Foster.
Cleveland
Carlisle.
Harrison
Foster
-.
Foster
Foster .
CarUsle.
Cleveland
Carlisle
McKinley....... Gage.

From—
July 11,13,65

ToMay 4,1875

Edmund Cooper, Tennessee.
Dec. 2,1867
William A. Richardson, Massachusetts. Mar. 20,1869
FrederickA. Sawyer, South Carolina.. Mar. 8,1873

May 31,1868
Mar. 17,1873
June 11,1874

Charles F. Conant, New Hampshire... July

Apr.

John F. Hartley, Missouri

. Curtis F. Burnam, Kentucky
Henry F. French, Massachusetts

1,1874

3,1877

. Mar. 4,1875 June| 20,1876
Aug. .12,1876 Mar. 9,1885

.,
Richard C. McCormick, Arizona
.. Apr. 3,1877
John B, Hawlfty, Tllinnis
.. Dec. 9,1877
J. Kendrick Upton, New Hampshire:. Apr. 10,1880

Dec. 8,1877
Mar. 31,1880
Dec. 31,1881

John C. New, Indiana
Charles E. Coon, New York

A-pT. 16,1884
Nov. 10,1885

Feb. 28,1882
Apr. 17,1884

' Charles. S. Fairchild, New York
,. Mar. 14,1885 Apr. 1,1887
William E. Smith, New York
Nov. 10,1885 June 30,1886
Hugh S. Thompson, South Carolina... July 12,1886 Mar, 12,1889

Isaac N. Maynard, New York

Apr.

George H. Tichner, Illinois
George T. Batchelder, New York
A. B. Nettleton, Minne»sota. ,

Apr. 1,1889 July 20,1890
Apr. 1,18893 Oct. 31,1890
July 22,1890 Dec. 1,1892

0 . L. Spaulding, Michigan

July 23,1890

June 30,1893

Apr. 27,1891
_ . Nov. 22,1892
Dec. 23,1892

Oct. 31,1892
Mar. 3,1893
Apr. 3,1893

Lorenzo Crounse, Nebraska
John .TT. Gftfl.r, Town,
Genio M. Lambertson, Nebraska
Charles S. Hamlin., Massachusetts

•Act July 11,1890, provides for an additional Assistant Secretary.




Term of service.

Assistant Secretaries.

6,1887

Mar. rll, 1889

Apr. 12,1893 Apr.

7,1897

XXL

ASSISTANT SECRETARIES OF THE TREASURY.

Assistant Secretaries of the Treasury and Presidents and Secretaries under whom they
sei'ved—Continued.
Presidents. '

Secretaries.

Cleveland
McKinley...:.:.
Cleveland
McKinley

Carlisle
Gage.
Carlisle
Gage.
Gage
Gage
Roosevelt
Gage.
Shaw.
McKinley....... Gage
Gage..
Roosevelt
Gage. •
Shaw.
McKinley
Gage
Roosevelt
Gage.
Shaw.
Shaw
Shaw
Shaw. .•
Cortelyou.
MacVeagh.
Taft....."
Roosevelt
Shaw
Cortelyou.
Shaw
Cortelyou
Cortelyou
Taft
MacVeagh.
MacVeagh...
MacVeagh
MacVeagh
Wilson.
McAdoo.
MacVeagh
Taft
MacVeagh
Wilson
McAdoo.
MacVeagh
Taft ..
Wilson
McAdoo.
McAdoo.....
McAdoo
McAdoo
McAdoo
.
McAdoo
McAdoo
McAdoo
Glass.
McAdoo
Glass.
Houston.
Harding
Mellon.
Wilson
McAdoo
Glass.
Houston.

Assistant Secretaries.

Term of service.

Wilham E. Curtis New York

From—
Apr. 13,1893

To—
Mar. 31,1897

Scott Wike, Illinois

July

1,1893

May

Wilham B. Howell, New J e r s e y . . . . : . . Apr.
x\pr.
Oliver L. Spaulding, Michigan

7,1897
7,1897

Mar. 10,1899
Mar. 4,1903

June 1,1897
Mar. 13,1899

Frank A. Vanderlip, Illinois
Horace A. Taylor, Wisconsin

"

. Milton E. Ailes, Ohio

4,1897

Mar.
June

Mar.

Apr. 15,1903

6,1901

5,1901
3,1906

Robert B. Armstrong, Iowa
Charles H. Keep, New York
James B. Reynolds, Massachusetts

Mar. 5,1903 Mar. 5,1905
May 27,1903 Jan. 21,1907
Mar. 5,1905 Nov. 1,1909

John H. Edwards, Ohio..'

July

1,1906

Mar. 15,1908

Arthur F. Statter, Oregon
Beekman Winthrop, New York
Louis A. Coolidge, Massachusetts

Jan. 22,1907
Apr. 23,1907
Mar. 17,1908

Feb. 28,1907
Mar.' 6,1909
Apr. 10,1909

Charles D. Norton, Ilhnois
Charles D. Hillis, New York
James F. Curtis, Massachusetts

Apr. 5,1909
Apr. 19,1909
Nov. 27,1909

June 8,1910
Apr. 3,1911
July 31,1913

A. Piatt Andrew, Massachusetts
Robert 0 . Bailey, T\1,inoi.s

June 8,1910
Apr. 4,1911

July
Mar.

Sherman P. Allen Vermont

July 20,1912

Sept. 30,1913

John Skelton Wilhams, Virginia
Charles S. Hamhn, Massachusetts
Byron R. Newton, New York
Wilham P. Malburn, Colorado
Andrew J. Peters, Massachusetts
Oscar T. Crosby, Virginia
Leo S. Rowe, Pennsylvania

Mar.
Aug.
Oct.
Mar.
Aug.
Apr.
June

Feb.
Aug.
Oct.
Jan.
Mar.
Aug.
Nov.

James H, Moyle, U t a h . .

Oct.

i ..

Russell C. Leffingwell, New York

•

24,1913
1,1913
1,1913
24,1914
17,1914
17,1917
22,1917

3,1912
3,1913

2,1914
9,1914
1,1917
26,1917
15,1917
28,1918
20,1919

5,19174 Aug. 26,1921

Oct. 30,1917

July

5,1920

,

»Act Oct. 6,1917, provided for two additional Assistant Secretaries for duration of war and six months
after.




XXII

ASSISTANT SECRETARIES OF T H E

TREASURY.

Assistant Secretaries of the Treasury and Presidents and Secretaries under vjhom they
served—Continued.
Presidents.

Wilson

Harding
Wilson
Harding
Wilson
Harding
Wilson
Harding

:

Secretaries.

McAdoo
Glass.
McAdoo
Glass .Houston.
Glass
Houston.
Glass
Houston.
Houston
Mellon.
Houston
• MeUon.
Houston
Mellon.
Houston
Mellon.;
Mellon....
Mellon

Assistant Secretaries.

Thonaas B. Love, Texas

From—
.Dec. 15,1917

To—
Jan. 31,1919"

Albert Rathbone, New York

Sept. 4,1918

June 30,1920=

Jouett Shouse, Kansas...

Mar. 5,1919

Nov. 15,1920'

N o r m a n H , D a v i s , TftnnpisseP.

Nov. 21,1919

June 14,1920

Nicholas Kelley,- New York.

June 15,1920

Apr. 14,1921

S. Parker Gilbert, jr.. New Jersey 6

July

6,1920

Jiine 30,1921

Ewing Laporte, Missouri

Dec;

4,1920

May 31,1921

Angus W. McLean, North Carolina
Dec. 4,1920 Mar.
Mar. 16,1921'
Ehot Wadsworth, Massachusetts
Edward Clifford, Ilhnois .
. . . . May 4,1921
Dec. 23,1921
Elmer Dover, Washington

> Became Undersecretary July 1,1921.




Term of service.

4,1921

ANNUAL REPORT ON THE FINANCES
TREASURY DEPARTMENT,

Washington^ November 28^ 1921.
SIR : I have the honor to make the following report:
From the point of view of the Treasury the past year has been
marked by important developments. I t has been, first of all, a
period of pronounced economy and retrenchment in Government expenditure. The war brought with it a new scale of expenditure, and
for some time after actual hostilities ceased the Treasury had heavy
obligations to meet on account of the war. Expenditures in the fiscal
year ended June 30, 1920, amounted to almost $6,500,000,000,-while
for the fiscal year ended June 30,1921, ordinary expenditures, including sinking fund and miscellaneous fixed-debt charges, still ran over
$5,500,000,000. This cash outgo it has been the constant endeavor of
the administration to reduce, and it now expects to hold expenditures on the same basis for the fiscal year 1922 down to $4,000,000,000,
or thereabouts, a reduction of about $1,500,000,000 below the year
1921. I n some measure this reduction reflects the liquidation of war
liabilities, but to an important extent it represents a reduction in the
cost of Governihent. From either aspect it means a reduction in
the tax burden. On June 10, 1921, the act to create a Budget system
became a law, and by the end of the fiscal year 1921 the Bureau of
the Budget was organized and established. I t has already proved
to be a most effective arm of the Executive to enforce the determination to bring about a reduction in Government expenditures.
Through the Bureau of the Budget and the heads of the several departments and establishments it has been possible to exert continued
pressure for economies in administration, and by this means as well
as through the coordination of Government activities under the general supervision of the Bureau of the Budget important savings have
been accomplished. For the first time in its history the Government^
has an agency equipped to put pressure upon the spending offices to
reduce expenditures, and the results already accomplished constitute
one of the most encouraging developments of the year.
Another effective force which has made for continued reduction
in Government expenditures has been the shrinkage in current revenues, coupled with the necessity of a thoroughgoing revision of the
internal-tax laws so as to reduce the burden of taxation on the com70073--FI1921—1 ^




1

2

. REPORT ON T H E FINANCES.

munity. At the outset it appeared from the estimates that additional taxes might be necessary to supply deficiencies in the revenues unless there were striking cuts in expenditure. The determined efforts for economy, however, have resulted in cutting
expenditures for the current fiscal year over $400,000,000 below the
amount originally estimated to be necessary by the spending departments, and this in turn has made it possible to proceed with the
revision of internal taxes on the basis of a substantial cut in revenues.
The result is that the revenue act of 1921, approved November 23,
1921, has made a substantial reduction in the tax burden, running
over $800,000,000 for the fiscal year 1923, as compared with the old
law, and at the same time has provided for the repeal or reduction
of several of the most vexatious and burdensome taxes and for the
simplification of the taxes that remain in force.
During the past year, furthermore, the Treasury has made
substantial progress in the refunding of the short-dated debt and
has already succeeded in bringing about a better distribution of
the early maturities of the debt, which should greatly facilitate the
refunding operations incident to the maturity of the Victory Liberty
loan. The Treasury announced in April that it would be the policy
to vary its issues of Treasury certificates from time to time with
issues of short-term notes in moderate amounts, and two issues of
Treasury notes have already been successfully floated, on June 15 and
September 15, 1921. In consequence of these operations it has been
possible to refund about $700,000,000 of the short-dat^d debt
into later, maturities, to reduce the Victory notes outstanding
to about $3,600,000,000, and at the same time to bring the outstanding amount of Treasury certificates down to about $2,300,000,000. With this better distribution of the debt and with lower
rates for money, the market prices of outstanding Liberty bonds and
Victory notes have shown marked improvement during the last six
months. Victory notes have touched p a r and arre consistently quoted
at about par, while the several issues of Liberty bonds are now selling
at prices ranging from about 95 to about 97, or on an average about
10 points higher than a year ago. Treasury certificates of indebtedness which a year ago the Government was selling at interest rates of
»5f and 6 per cent, have recently been sold for 4^ and 4^ per cent, and
all issues outstanding are quoted at par or above. These developments in respect to the public debt are most encouraging and indicate
that the Treasuiy should be able to proceed in an orderly way and
without undue disturbance to business with the great refunding
operations that will be needed in connection with Victory Liberty loan
and other short-dated debt outstanding. The maturity within the
next 18 months of almost $6,750,000,000 of short-dated debt still




SECRETARY OF THE TREASURY.

3

dominates the situation, however, and make's it imperatiA^e that the
Government pursue a policy of the utmost economy and avoid new
undertakings that would throw additional burdens on the Treasury
and embarrass the refunding operations. The 1918 series of warsavings certificates matures on January 1, 1923, and the. Victory Liberty loan on May 20, 1923. Treasury certificates of various series,
aggregating about $2,300,000,000, will also mature within the year.
The greater part of this debt will have to be refunded, and the
orderly conduct of the refunding operations will require the Treasury's best attention for some time to come.
T H E R E F U N D I N G OF T H E SHORT-DATED DEBT.

At the outset of the present administration of the Treasury steps
were taken toward making the short-dated debt more manageable.
Earlier plans for the gradual retirement of loan and tax certificates
had been disarranged because of continued heavy current expenditures, particularly on accoimt of the Army and Navy and the railroads. The Treasury, therefore, announced the policy of issuing
from time to time short-term notes in moderate amounts with maturities of from three to five years, in order to distribute the shortdated debt over a series of years ranging from 1923 to 1928. The
neAv policy was first outlined in the following extract from the
letter of the Secretary of the Treasury to the chairman of the Committee on Ways and Means of the House of Eepresentatives, on
April 30, 1921:
Tbe estiniates of receipts and expenditures for both 1921 and 1922 show
clearly that while this Government has definitely balanced its budget, the surplus of current receipts over current expenditures will not quite'provide for
wliat niay.be termed the lixed public debt redemptions, and that unless expenditures are sharply reduced there will be practically no funds available in these
years for the retirement of the floating debt represented by loan and tax certificates outstandhlg. The estimated current surj^lus in both 1921 and 1922
will be absorbed (1) by current redemptions of war savings securities, redeemable substantially on demand; (2) by purchases fs)v the cumulative sinking
fund; (3) by acceptance of Eiberty bonds and Victory notes for estate taxes;
and (4) by miscellaneous otber debt retirements which must be made each
year in order to comply with existing law" or with the terras of outstanding
securities. This means that the Treasury's earlier expectations as. to the retirement of the floating debt have been upset by the continuance of unexpectedly heavy current expenditures during the past 12 months, particularly on
account of the Army and Navy and the railroads, and that the Government can
not now expect to retire any material portion of the two and one-half billions
of floating debt now outstanding during the fiscal years 1921 and 1922 out of
the current revenues. It means also that the country can not look to any plan
for funding the floating debt to reduce the burden of internal taxes during the
next two years. Substantial cuts in current expenditures offer the only hope
of effective relief from, the tax burden.




4

REPORT ON THE FINANCES.

Within the next two years, or thereabouts, there will mature about seven and
one-half billions of short-dated debt (including the outstanding floating debt),
and it is to the gradual retirement of this debt that the bulk of the current
surplus is necessarily applied, in large part through the miscellaneous debt retirements described in the preceding paragraph. Substantial progress has already been made in the retirement of the short-dated debt. Statement E, for
example, shows that the short-dated debt aggregated $7,578,954,141.89 on March
31, 1921, as against $9,248,188,921.12 on August 31, 1919, when the war debt was
at its peak, a reduction of about one and two-thirds billions in the 19 months'
period. This reduction was due in large part to the reduced balance in the
general fund and the application of receipts from war salvage, and only in
small measure io surplus tax receipts. In view of its early maturity, the Treasury must regard the short-dated debt as a whole, and within the next two years
may expect to reduce it by perhaps one billion dollars through the continued
operation of the sinking fund and the miscellaneous annual debt retirements.
The remainder of this short-dated debt, amounting to over six billions, will
have to be refunded. It will therefore be the Treasury's pol icy to vary its monthly
offerings of Ti'easury certificates of indebtedness from time to time when market
conditions are favorable with issues of short-term notes in moderate amounts
with maturities of from three to five years, with a view to the gradual distribution of the short-dated debt through successive issues of notes in convenient
maturities extending over the period from 1923 to 1928, when the third Liberty
loan matures. Treasury certificate offerings will continue to be made from time
to time as in the past, in order to meet the Treasury's current requirements.
This program will make the short-dated debt more manageable and facilitate
the refunding operations which will be necessary in connection with the maturity of the Victory Liberty loan.
The first offering of Treasury notes was made on June 15, 1921,
coincident with an offering of Treasury certificates, and met with a
hearty response, The notes were three-year 5f per cent notes, designated Series A-1924, and $311,191,600 face amount was allotted.
The notes-proved immediately attractive to investors, and ever since
the closing of the subscription books have sold at a premium. With
the program thus successfully launched the Treasury was able on
September 15, 1921, to make a second off'ering of short-term notes at
a lower rate in connection with the offering of Treasury certificates
on that date. The notes were dated September 15, 1921, designated
Series B-1924, with maturity of three years, and bore interest at the
rate of 6^ per cent. This offering was promptly oversubscribed and
allotments were made in the amount of $390,706,100. The total
Treasury notes outstanding now amount to $701,897,700, and with the
proceeds of sale the Treasury has already been able to effect a material improvement 4n the distribution of the short-dated debt. The
Victory Liberty loan maturity has been substantially reduced and
the outstanding loan and tax certificates are at the lowest figure in
several years.
The changes in the Government's floating debt (loan and tax certificates unmatured) are shown in the following table, which gives
the volume of unmatured loan and tax certificates outstanding at




SECRETARY OF THE TREASURY.
various dates since August, 1919, when the peak of the public debt
was reached:
Loan and tax
certificates
outstanding.

Date.

Aug. 31, 1919
June 30, 1920.
June .30, 1921.
Oct. 31, 1921.

$3,938,295,000
2,485,550,500
2,4.50,601,000
1,932,218,000

The growing popularity of Treasury certificates of indebtedness
among the investing public has been a matter of gratification to the
Treasury. Since March of this year the certificates of all issues outstanding have been quoted at par or a premimn. Quotations appear
regularly in the leading daily newspapers and financial periodicals,
and Treasury certificates enjoy a broad and active investment market.
Partial allotments have been necessary in the case of every issue
during the past year. At the same time the easing in market rates for
money has made it possible for the Treasury to reduce the rate of
interest paid on these securities approximately I J per cent. During
the latter half of 1920 the prevailing rate was 5 | per cent for sixmonths certificates and 6 per cent for one-year certificates. The decline in rates has been gradual since December and the latest issues,
which were offered on November 1, 1921, bore 4^1 per cent for fivemonths certificates and 4 | per cent for lOJ-months' certificates.
The success with which the Treasury has met in its efforts to secure the distribution of certificates among investors and to avoid
lodging them in the banks is shown in the following table, which
gives for various dates the amount of tax and loan certificates held
by reporting member banks of the Federal Eeserve System and by
the 12 Federal reserve banks, together with the percentages of these
figures to the total amount outstanding. The reporting member
banks number something over 800, and are believed to control about
40 per cent of the commercial banking resources of the country and
to have subscribed in the first instance to nearly 75 per cent of the
outstanding issues of Treasury certificates:

Date.

Loan a n d t a x
certificates outstanding
(amount).

L o a n a n d t a x certificates held b y reporting m e m b e r b a n k s .

Amount.1

J u n e .^ 1919
"O
J u n e 30, 1920
J u n e 30, 1921
Oct. 31,1921

$3,263,766,000
2,485,550,500
2,450,601,000
1,932,218,000

$916,739,000
419,954,000
221,025,000
2 93,742,000

Per cent
of a m o u n t
outstanding.
28.1
16.9
8.9
4.8

L o a n a n d t a x certificates pledged w i t h
Federal reserve b a n k s .

Amount.i

$367,941,000
38,502,000
17,956,000

Per cent
of a m o u n t
outstanding.

14.8
1.8
0.9

1 These figures are available for a given day each week and are taken for the dates nearest those given
at the left of the table.
2 Oct. 26, 1921.




6

REPORT ON T H E FINANCES.

The percentage of outstanding Treasury certificates held by reporting member banks has declined from 28 on June 30,1919, to 5 on
October 31, 1921, and at the present time less than 1 per cent of the
outstanding certificates are pledged Avith the Federal reserve- banks
to secure loans as compared with 15 per cent on June 30, 1920.
From October 31, 1920, to October 31, 1921, there were seven issues
of loan certificates aggregating $1,381,850,000, and eight issues of
tax certificates aggregating $1,810,001,500, making a total'of fifteen
issues aggregating $3,191,851,500. During the same period total redemptions of tax and loan certificates have aggregated $3,635,017,500.
The course of certificate operations for the period under review is
shown best by reference to the circular letters and public statements issued from time to time during the year concerning the
Treasury certificate program. These letters and statements appear
as exhibits to this report, and a detailed discussion of the operations
is given on pages 65 to 69 in the article entitled *' Treasury Notes
and Certificates of Indebtedness."
REVENUE REVISION.

One of the most important developments of the year, both from
the point of view of the business and industry of the coimtry and
from the point of view of the administration of the Treasury, has
been the revision of the internal tax laws, which has engaged the
attention of the Treasury and of Congress almost continuously since
the beginning of the present administration. The result has been a
revision of taxes which not only grants an important measure of
relief to business but also accomplishes a substantial reduction in the
total tax burden for all classes of the community. The earlier plans,
submitted by the Treasury were founded upon estimated expenditures of about $4,500,000,000 for the fiscal year 1922 and about
$4,000,000,000 for the fiscal year 1923, but as time went on and the
results of the executive pressure to reduce expenditures became apparent it proved possible to proceed with the revision on a basis of
about $4,000,000,000 of expenditures for the present fiscal year and
about $3,500,000,000 for the fiscal year 1923. This change in the
revenue requirements has maide it possible to dismiss from consideration some of the additional taxes suggested by the Treasury at the
outset, but has not affected the main outlines of the Treasury's recommendations, particularly as regards the income surtaxes and profits
taxes.
On April 30, 1921, in response to the request of the chairman of
the Committee on Ways and Means of the House of Representatives,
the Secretary of the Treasury submitted to the Congress revised




SECRETARY OF THE TREASURY.

7

estimates of receipts and expenditures for the fiscal years 1921 and
1922, and indicated in connection therewith the revenues necessary
for the fiscal years 1922 and 1923 in order to meet the Government's
current, requirements. A copy of this letter appears in this report as
Exhibit 68, page 349.
.
The estimates at that time indicated expenditures for the fiscal
year 1921 of $5,602,024,861, including sinking fund and miscellaneous debt charges, and for the fiscal year 1922 expenditures
of $4,565,877,033, against ordinary receipts for the fiscal year
1921. of $5,487,067,000, and for the fiscal year 1922 of $4,547,643,000.
These estimates showed that current receipts during the two fiscal
years 1921 and 1922 would not quite provide on this basis for the
total estimated expenditures, including current redemptions of warsaving securities, purchases for the cumulative sinking fund, the
acceptance of Liberty bonds and Victory notes for estate taxes, and
miscellaneous other debt redemptions required to be made out of
receipts specially earmarked for the purpose. The estimates thus
submitted, which were based on the latest reports received from
the spending departments and establishments of the Government,
showed that unless there were striking cuts in current expenditure,
there could be no important reduction in internal taxes, and that
the most substantial relief from the tax burden would have to come
from the readjustment of internal taxes and the revision or repeal
of those taxes which had become unproductive and were so artificial
and burdensome as to defeat their own purpose. On this basis the
Secretary made the following principal suggestions with regard
to the revision of the internal tax laws:
1. Repeal the excess-profits tax, and make good the loss of revenue by means
of a modified tax on corporate profits or a flat additional income tax upon
corporations, and the repeal of the existing $2,000 exemption applicable to cor-porations.
2. Readjust the income-tax rates to a maximum combined normal tax and
surtax of 40 per cent for the taxable year 1921, and of about 33 per cent thereafter, with a view to producing aggregate revenues substantially equivalent to
' the estimated receipts from the income tax under ^existing law.
3. Retain the miscellaneous specific sales taxes and excise taxes, including
the transportation tax, the tobacco taxes, the tax on admissions, and the capital-stock tax, but repeal the minor "nuisance" taxes, such as the taxes on"
fountain drinks and the miscellaneous taxes levied under section 904 of the
revenue act, which are difficult to enforce, relatively unproductive, and unnecessarily vexatious. The repeal of these miscellaneous special taxes would,
it was estimated, result in a loss of about $50,000,000 in revenue.'
4. Impose sufficient new or additional taxes of wide application, such as increased stamp taxes or a license tax on the use of automobiles, to bring the
total revenues from internal taxes after making the changes above suggested to
about $4,000,000,000 in the fiscal years 1922 and 1923. It was pointed out that
the only way to escape these additional internal taxes, to an aggregate amount




8

REPORT ON THE FINANCES.

of between $250,000,000 and $350,000,000, would be to make immediate cuts in
that amount in current expenditures. In the event that this should prove impossible, it was stated that it might be feasible .to provide perhaps as much as
$100,000,000 or $150,000,000 of the necessary revenue from new duties on staple
articles of import, and the balance by taking more effective steps to realize on
biack taxes, surplus war supplies, and other salvageable assets of the Government.
5. Adopt necessary administrative amendments to the revenue act in order
to simplify its administration and make it possible, among other things, for the
Commissioner of Internal Revenue, with the approval of the Secretary of the
Treasury and the consent of the taxpayer, to make final determination and settlement of tax cases. In this connection it was suggested it would be well, in
the interest of fairness and in order to simplify the administrative problem, to
provide, under proper safeguards, for carrying forward net losses of one year
as a deduction from the income of succeeding years.

On August 4, 1921, before the Committee on Ways and Means of
the House of Eepresentatives, the Secretary made a statement which
further developed the Treasury's suggestions with respect to the revision of the internal tax laws (-a copy of which is included herein
as Exhibits 69 and 70, pp. 362 and 363),.and at the same time presented revised estimates of the receipts and expenditures of the
Government for the fiscal year 1922, estimates of the yield of internal
revenue and customs under the existing law and the suggested
revised law for the fiscal years 1922 and 1923, and a brief comment
on the principal changes suggested for consideration in connection
with the revision of the internal tax laws. These revised estimates
indicated total current expenditures for the fiscal year 1922 of about
$4,554,000,000, including sinking fund and miscellaneous public debt
redemptions required by law. I t was estimated that miscellaneous,
revenues during the year from salvage and sources other than taxation would amount to about $350,000,000, leaving $4,200,000,000, on
this basis, to be provided from customs and internal revenue.
These figures showed that if additional taxes were to be avoided
there must be additional effective cuts in ordinary expenditures and
that even with substantial cuts the internal revenue yield for the year
1922 could not well be permitted to fall below $3,570,000,000, .the
amount of the estimated yield under existing law. I n this connection the attention of Congress was called to the fact that in the fiscal
year 1923 the Victor}^ Liberty loan and the 1918 series of war savings
certificates would mature, and that with these large maturities to
meet, the Treasury would need some margin of current revenues over
current expenditures for the year in order that the refunding operations necessary during the year should not be complicated by additional borrowings to meet current expenditures.




SECRETARY OF THE TREASURY.

9

This statement of the probable position of the Treasury Avas followed by a determined effort to accomplish reductions in the estimated expenditures of the Government and by a careful revision of
the estimates of the spending departments and establishments, under
the leadership of the President. As a result the 'Secretary of the
Treasury was able to submit, on August 10, 1921, in a letter to the
chairman of the Committee on Ways and Means (a copy of which
appears'herein as Exhibit 71, p. 369), figures as to the reductions
in the estimated expenditures of the Government which the administration had determined to make for the fiscal year 1922. • These
figures were agreed upon at a conference on August 9, 1921, between
the President, the Secretary of the Treasury, and members of the
Committee on Ways and Means, and provided for a reduction in the
ordinary expenditures of the Government for the fiscal year 1922
of $350,000,000 below the revised estimates presented by the Treasury
on August 4, and a reduction of $170,000,000 in the estimated net public debt expenditures, an aggregate reduction in expenditures of
$520,000,000, leaving an estimated total expenditure of about $4,034,000,000 for the fiscal year 1922. This reduction in the estimates of
ordinary expenditures was made on the understanding that every
branch of the administration, with the assistance of the Director of
the Bureau of the Budget, would put forth its utmost efforts to assure
economy in all Government activities and that every effort would be
made to increase realization on salvageable property remaining from
the war. I n view of the reductions in expenditures thus pledged to be
made during the fiscal year i922, and with the expectation of increased receipts from salvage and other sources than internal revenue
during the fiscal year 1922, the Secretary recommended that the internal revenue laws be revised so as to produce a total of $3,000,000,000
of internal revenue for the calendar year 1922, and suggested that this
revision should involve (1) the repeal of the excess-profits tax, effective. January 1, 1921, with a 2J per cent flat tax on corporation incomes as a partial substitute; (2) the repeal of the higher surtax
brackets to a maximum of 32 per cent, effective January 1, 1921, and
.a maximum of 25 per cent, effective January 1, 1922; (3) the reduction of transportation tax by one-half, effective January 1, 1922, and
its repeal, effective Januaiy 1,1923; (4) the repeal or modification of
certain miscellaneous taxes imposed under sections 630 and 904 of the
revenue act of 1918; and (5) sufficient readjustments in miscellaneous
taxes to assure aggregate internal revenue for the calendar year of
$3,000,000,000. I t was estimated that the additional revenue necessary for the fiscal year 1922 would be made up by the overlapping of
receipts collected under existing law and to some extent by collections
of back taxes.




10

REPORT ON T H E FINANCES,

The suggested rcAdsion contemplated further reductions in
taxation for the calendar year 1923 through the complete repeal of •
the transportation tax, effective January 1, 1923, and the reduction
of the surtaxes to a maximum of 25 per cent, effective January 1,
1922.
The significance of the revised program 'for the reduction of
Government expenditures-and the revision of internal taxes on tlie
new basis was emphasized by a public statement issued from the
White House, under date of August 13, 1921, a copy of which appears herein as Exhibit 72, page 372.
Real progress along the lines of this program has been made by the
revenue act of 1921,"as finally enacted and approved November 23,
1921. The surtaxes have been reduced to a maximum of 50 per cent,
effective January 1, 1922, and at the same tinie have been readjusted
in the lower brackets. The excess-profits tax has been repealed,
effective at the close of the calendar year 1921, and a flat additional
tax of 2^ per cent on the net income of corporations has been substituted, with the repeal of the $2,000 exemption for corporations with
incomes of over $25,000. The new law also limits the tax upon
capital gains and embodies administrative provisions which permit
business reorganizations and readjustments to go forward without
premature taxation of paper profits or deduction for unreal losses.
I t allows net losses sustained by trade or business in one year to be
deducted from the profits of the two succeeding years, and authorizes final settlement of tax claims and assessments. I t contains many
other provisions which are designed to simplify the law and improve
its administration. Taken all in all, the effect of these changes is to
give substantial relief to business and industry and to restore in some
measure the freedom of business transactions. I t is estimated, moreover, that the result is a net reduction of the tax burden on account
of income and profits taxes alone of about $410,000,000 a year. Eeductions in other taxes, amounting to about $425,000,000, are also
made by the revenue act of 1921. The transportation and insurance
taxes imposed by Title V of the old law, the nuisance tax on toilet
and medicinal articles, and the .specific sales taxes on musical instruments, sporting goods, motion-picture films,. articles made of fur,
toilet soaps, and other articles, are repealed, while the taxes on soft
drinks, candy, so-called luxuries and works ,of art are markedly
reduced or restricted. On this basis it is estimated the new law reduces the aggregate tax burden by about $835,000,000 for the first
full fiscal year of its operation, the year 1923.
The reduction in internal-revenue collections is shown by the following comparative statement of actual collections for the fiscal year




11

SECRETARY OF THE TREASURY.

1921 under the old law and estimated collections for the fiscal years
1922 and 1923 under the revised law:
Fiscal year—
1921

Total

$3,205,000,000
1,390,000,000

$2,110,000,000
1,104,500,000

$1,715,000,000
896,000,000

4,595,000,000

Income and profits taxes
MisceUaneous internal-revenue taxes

1922

3,214,500,000

2,611,000,000

1923

TAXATION AND R E V E N U E .

The sudden and great increase in the governmental expenditures,
due to the World War, made it necessary that the revenues raised
by taxation should be increased as quickly and to as great an extent
as possible, and the methods adopted for this purpose were necessarily of an emergency character. Now that the war has ended and
sufficient time has elapsed to enable us to forecast with reasonable
accuracy the probable needs of the Government in the way of
revenue for some years to come, it is of primary importance that
careful consideration be given to the permanent methods of taxation to be adopted, so,that our revenue needs may be met with as
little interference as possible with the prosperity and the well-being
of the people of the whole country.
As already shown much has been accomplished in the passage of
the revenue act of 1921, but our system of taxation still requires
careful and thoughtful consideration.
I n order that we may realize the great change which has taken
place due to the World War, it is well to contrast the revenues and
the total ordinary disbursements of the Government before the war
with the revenues and disbursements since the war.
Considering first the sources from which in the past the revenues
of the Government have come, we find that, prior to the Civil War,
the ordinary receipts were derived almost entirely from customs, supplemented by small miscellaneous revenues. The increased expenditures caused by the Civil W a r led to the imposition of internal
revenue taxes, principally upon liquors, tobacco, incomes, and certain manufactures and products, with the result that in the year
1866, which marks the highest point of taxation during the Civil
War period, the total ordinary, receipts were $557,000,000, of which
$179,000,000 was customs receipts and $378,000,000 internal-revenue
and miscellaneous receipts.
From 1867 on, for many years, internal-revenue receipts showed
a steady decline, and the Government came again to depend for its
revenues principally upon customs receipts. Beginning with the




12

REPORT ON THE FINANCES.

year 1894, the ordinary receipts were divided, speaking in a very
general way, pretty nearly equally as between customs and internalrevenue receipts; and this continued up until 1911, when the revenues from the excise tax on corporations, under the act of 1909^
definitely put the receipts from internal revenue slightly ahead of
the receipts from customs, the figures for that 3^ear being $314,000,000 customs receipts and $322,000,000 internal-revenue receipts.
The following table shows in comparative form the sources of
revenue and the total ordinary receipts and disbursements for the
years 1913, 1914, and 1915, which may fairl}^ be taken as average
prewar years, and for the afterwar years, 1920, 1921, 1922, and 1923.
the latter two estimated.
Statement shoioing customs receipts by tvarrant, internal-revenue collections,
and total ordinary receipts and disbursements {on the basis of daily Treasury
statements) for the fiscal years .1.9.13 to 19.1.5 and 1920 to 1923, inclusive.
[Fiscal years 1922 and 1923 estimated.]
Customs.

I n t e r n a l - r e v e n u e collections.

Receipts.!

Income and
profits t a x
and
corporation
capital stock.3

Fiscal
year.

im.%
1914
1915
1920
1921
1922
1923

Tobacco.2

Distilled
spirits a n d
fermented
liquor.2

.?318, 891,395 S76,789,424 $230,146,332
292,320,014 79,986.639 226,179,689
209, 786, 672 79, 957; 373 223,948,646
323,536,559
308, 025,102
275.000,000
330; 000,000

Transporta. t i o n , teleg r a p h , telep h o n e , etc.

Special sales
taxes—manufactures a n d
products,
E s t a t e t a x . sales, c o n s u m ers or dealers
tax, and
beverages, soft
drinks, etc.

?35,006,299
71,381,274
SO, 201,75S

295,809,355 •139,871,149 4,049,956,424 $289,348,087 $103,635,563
255,219,385
82,623,428 3,309,663,326 301,512,413 154,043,260
250,000, 000
60, 000, 000 2,185,000,000 162,000,000 150,000,000
250, 000,000
60.000,000 1, 790,000,000 6 27,000,000 150,000,000

I n t e r n a l - r e v e n u e collections—Continued.

$318,918,057
282,222,065
224,030,000
187; 580.000

Total ordinary.

Fiscalyear.
Stamps.*

1913
1914
1915

87,687,246
75,664,840
58,500,000
46,500,000

Miscellaneous.
$2,482,397
2,461,289
8,117,2S0

823,455,965

1920
1921
1922
1923

Admissions
and dues.

$81,918,556
95,890,650
95,000,000
80,000,000

40,4.35,811
38,161,394
29,970,000
19 920 000

Total internal
revenue.5

Receipts.

$344,424,453
380,OOS, 893
415,681,023

$723,782,921
734,343, 700
695,663,190

$725,440,950
735, 386,190
760,714,614

5,407,580,251 6,694,565,389
4,595,000,765 5,624,932,961
3.214. .500.000 3,968,453,663
2 fill 000 000 3,345,182,750

76,482,077,241
7 5,538,040,689
73,992,922,366
73,512,754,727

Disbursements.

1 Duties and tonnage covered into the Treasury by warrants.'
2 Including special taxes relating to manufacture and sale.
«
3 Receipts for fiscal year 1913 and $10,071,077.22 for 1914 are "excise tax on corporations."
< Including sales by postmasters of documentary stamps as follows: Fiscal year 1920, $24,437,8'J.75, and
1921, $20,880,868.86.
3 Based on collections of internal-revenue oflicers and not on warrants.
8 Telegraph and telephone.
7 Includ33 public dabt exp3nditur33 chargeable against ordinary receipts




SECRETARY OF THE TREASURY.

13

We must, therefore, face the fact that the ordinary disbursements
of the Government, by reason of the war, increased from approximately $700,000,000 per year for the prewar years to over
$6,000,000,000 for the year 1920, and while we have been able to
reduce the expenditures for the fiscal year 1923, as now
estimated, to approximately $3,500,000,000, for many years to come
Government expenditures must continue at an extraordinarily high
rate. The increase in population, the enlargement of Government
functions, the addition of new agencies, the interest on the public
debt, and the expenditures indispensable in connection with the
disabled veterans of the war make it manifest that the ordinary
expenses of the Government for some years to come will probably
be several times those for prewar years. I t is, then, of vital importance that adjustments be made in our scheme of taxation whereby
the burden will not fall unduly, either directly or indirectly, upon
aii}^ particular class, and at the same time will not seriously interfere
with productive industry and the general prosperity of the country.
The people of the country should be aroused to the importance of
giving serious consideration to this problem, for it is only as they
come to understand the real need of the taxes they are called upon
to pay, and the evil effects of unwise taxation-^of any attempt to
impose an undue burden upon any class—^that" real progress can be
made toward a well balanced and equitable system of taxation.
The matter is of exceptional importance at this time. I n the past
year we have suffered an industrial and business depression that
has affected every class of our people and reached into every part
of the country. How far-reaching the consequences may be, no one
can as yet safely predict. Unemployment in all classes has been very
great. If these conditions continue, our present burden of taxation
must seriously increase the troubles of our people. The hardship,
and suffering resulting from business depression and unemployment
inevitably fall most severely not upon those paying high income
taxes, but upon the great body of the people of small incomes.
Under our form of government there is, and very rightly so, little
danger, of any undue burden from the taxes imposed directly upon
those of small means, but there is danger of serious hardship and
suffering to them because of high prices, unemployment, and high
living costs resulting from unjust or unwise tax laws. Our very best
thought, therefore, should be directed to seeing that our system of
taxation shall interfere to the least possible extent with the retp^n ni
the country at least to such normal conditions and reasonable business activity as will prevent hardship to those least able to bear it.
There are certain features of our present taxation to which attentic^^hould be directed; principally the high surtaxes, the taxation oTbusiness profits and the estate taxes.




14

REPORT ON THE FINANCES.

Surtaxes.
The usual argument in favor of high surtaxes is that taxation
should be according to " ability to pay." The theory of taxation according to " ability to pay," like all other general statements, has its
limitations and its qualifications. In the first place, the tax must be
productive, otherwise the whole purpose of the tax is lost. Again,
it must not be unreasonable or oppressive, for in that case it will
be avoided or evaded and thereby cease to be productive. Again,
the tax must not be one the result of Avhich is to interfere with productive industry; it must not dry up the very source out of which
revenue is expected to come. . If it does, not only will the tax cease to
be productive but it will also result in lessened production, unemployment, arrest of the country's growth and serious injury to the
people least able to bear these consequences.
That the higher surtax rates are rapidly ceasing to be productive
of revenue is apparent from a study of the statistics published h j the
Bureau of Internal Kevenue. That these taxes are being evaded or
avoided, no one of an}^ experience doubts. I t is usual to put the
blame for this upon the so-called tax-exempt securities. There is no
doubt that a large and steadily increasing amount of money formerly invested in productive industry is UOAV going into tax-exempt
securities. Investors having incomes falling within many bf the
higher brackets have found it no longer profitable to continue to
place their money in the-same class of business and investments as
heretofore, and tax-exempt securities afford a ready method of obtaining an assured income without the risk incident to investment in
productive industry. There is no use discussing whether the exemption of State and municipal securities from Federal taxation is
wise or unwise, for it is inherent in our system of government and
the remedy must be found in a constitutional amendment which good
faith requires should be applicable only to future issues of such
securities.
• The amount of such tax-exempt securities now outstanding is estimated by the Treasury at approximately $10,000,000,000. The exact
figures seem difficult to ascertain and much higher estimates are
made. The amount of new securities of this character issued during
the first eight months of the present year is said to be $800,000,000.
Of the total amount of tax-exempt securities now outstanding, approximately $2,500,000,000 have been issued by the United States,
or under its authority, including such securities as Federal farmloan bonds. (See Exhibit 76, p. 379 of this report.)
While tax-exempt securities afford an easy means to a large class
of investors of avoiding payment of the high surtax rates, they con-




j

SECRETARY OF THE TREASURY.

15

stitute only one of many ways that can be and are availed of to avoid
such taxation. Experience teaches us that means of avoiding taxes
which are regarded as excessive or unreasonable will always be found,
and it would be useless to attempt to catalogue them, for new methods
will constantly be developed as long as the tax rates continue so high
that persons having money for investment find it unprofitable to continue their investments in productive industry.
There are, however, other results floAving directly from these high
rates.of "taxation which are still more serious in their consequences to
the people of the country.
The tremendous development of the resources and of the industries
of our country, resulting in our present wealth, has been brought
about within a comparatively brief period of time, measured in the
life of nations, and has been primarily due to three things: (1) The
industry of our people and the opportunity and incentive afforded
to everyone, whatever his place, to acquire in a greater or less degree
some share or portion for himself of that which we call wealth; (2)
the steady accumulation of capital resulting from the industry and
the thrift of our people, whereby productive industry in every line
on a constantly expanding scale Avas made possible; (3) the very
moderate Federal taxation, whereby the free floAv of capital, wherever it was needed, and freedom of legitimate commercial transactions was not interfered with, the natural laws of trade being allowed
full play.
The result has been a prosperity general throughout the Avhole
people of the country, and unexampled elscAvhere. We have a standard of living higher than that prevailing in any other country, and
are proud to speak of ourselves as the wealthiest nation in the
world.
Does anyone belicA^e that if our policy in the past as respects taxation had been for the Government to take away from successful
eft'ort one-third, one-half, or three-fourths of the gains resulting
therefrom we Avould have accumulated the Avealth Avhich we now
possess, or have achieved our present position? Does anyone believe
for a moment that without this wealth w^hen drawn into the World
War we- could have so quickly put forth the marvelous strength
which we did and thereby have enabled the bringing of the war to a
Speedy and successful conclusion? NotAvithstanding the tremendous depression now existing in all business and industry, our people
look forward Avith absolute faith to the future, confident that these
conditions are but temporary, and it is the strength resulting from
our accumulated AA'Calth which gives us this confidence.
In the past we Avere proud of the opportunities enjoyed by our
people because Ave AA'ere free from high taxation, as compared AA^th




16

REPORT ON THE FINANCES.

the peoples of Europe, Avho, even before the Avar, Avere struggling
under a burden of taxation Avhich in our. Avildest fancy it never
occurred to us that Ave would approach.
The destruction of incentive.
Another serious effect of these high tax rates is the destruction
of incentive—the drying up of the activities of individuals in trade
operations—with consequent lessening of business transactions, the
sloAving doAvn of production, and ultimately a loss of rcA^enue to the
GoA^erninent.
There is not much incentive to men to take risks in any line of
industry Avhen all the risk must be borne by the individual, and, if
ultimately success comes, a large part of the gain is taken aAvay by
the GoA^ernment in taxes.
I n business life, success and profit are not ahvays the result of individual effort; in many cases the result is loss. All great success—
especially in new productive enterprise—Avhe.n ultimately gained, is
most frequently built upon many previous failures and comes only
after a considerable period of time during Avhich there was no profit.
So that, .when success comes, the profit or gain to be real must be
such as to compensate for these previous failures and losses, and
without this incentive there is no inducement to anyone to incur the
risks involved. Then, too, in'productive enterprise, the merchant,
the manufacturer, the farmer, profits vary from year to year, and
periods of lean years folloAv good years. High taxation which seizes
upon gains as quickly as realized, taking a large part thereof, and
making no allowance for the previous failures and losses Avhich have
had to be endured before success came, or for lean years, is utterly
destructive of individual incentive.
I n speaking of individual incentive, it should be clearly understood that reference is not made only to individuals of large incomes.
On the contrary, reward for successful effort must be lield out to
those of moderate incomes, because it is upon the younger men of
strength and courage and vision that a great deal of the burden must
fall in the way of initiating and carrying on the productive industries of the country. Large incomes, and the individuals receiving
them, play a very important part, but only a part, in the Avhole
general scheme of maintaining and carrying forward the productive
industries upon Avhich the prosperity of the country depends. Successful taxation after all rests upon a prosperous people, not any one
class, but the people as a whole.




SECRETARY OF THE TREASURY.

17

The need for new capital.
There are three things which may be noticed as bringing immediately to mind how essential new capital is in order that the country
may be prosperous.
1. We have a steadily increasing population, and that means an
increased need of everything that enters into human consumption.
2. Our standard of living steadily rises. This is no ncAv thing;
it seems always to have been true of every people of whom we know.
The luxury of to-day is soon a necessity. To provide for these added
needs requires more capital.
3. The waste and loss which goes on all the time must be made
good. There is the destruction of property by fire and other casualty.
Buildings, machinery, houses, furniture, everything that man makes
for his own use, wear out and disappear. Year by year this amounts
to a vast sum and must constantly be made good, otherwise the world
goes backAvard.
The accumulation of this necessary additional capital from year
to year can come about only through the savings of the people, and
the amount which any individual can save and add to the capital of
the Nation, of course, increases progressiA^ely with the amount of his
income. The larger the income the larger the possibility of saving,
because of the larger margin OA^er reasonable liAdng expenditures.
When it is sought to justify very high surtaxes on the ground of
ability to pay the tax, we should remember that ability to pay the
tax also means ability to save and to add to the needed capital of
the country, so that the theory of ability to pay, when carried to such
limits, destroys the ability to save, and thereby diminishes the capital
available for productive industry.
The nation has no wealth other than that OAvned by its citizens.
All productive wealth is owned by individuals and managed by them.
So, when we speak of the wealth of the country, we are in fact referring to the aggregate wealth of the people of the country. The
amount held by each individual does vary, but the. statement is, true
from the smallest amount in a child's savings bank to the largest
fortune.
The idea seems prevalent that in taxing large incomes, only the
person receiA^ng the income, and who is to pay the tax, is really concerned. This is a mistake. For' whatever the Government takes,
in the Avay of tax, out of any income, Avhich would otherwise be
saved and invested, and thereby become a part of the capital and
of the, wealth of the nation, affects not so much the individual from
Avhom it is taken as it does the whole people of the country, in the
direct loss of productive capital. So that in considering the effect
70073—FI 1921




-2

18

REPORT ON T H E FINANCES.

of high taxes upon incomes, particularly on very large incomes, it
is not so much a question of the effect on the individual who is called
upon to pay the tax as it is the effect upon the Avhole community.
The man receiving a large income may not himself suffer any hardship because a great part of it is seized and taken for taxes, but the
effect upon the community—upon the people of the whole country—
is serious indeed. After all, the wealth of the country, upon which
all the activities and the prosperity of our people depends, is made
up of the private, property of the individual citizens—^^of all the
people—and anything that unnecessarily takes away from this
accumulated property necessarily injuriously affects the people as
a whole.
,
The diversion of capital.
I t must be perfectly clear to anyone who gives serious thought to the
subject that the theory that high income taxes put the burden of
taxation on the rich and relieve the poor is a fallac}^ Take as an
illustration the present housing situation. The capital for building
operations has come from people having incomes large enough to
provide a surplus for investment. Eeal-estate mortgages Avere always
considered a sound investment for this class, and capital usually Avas
available at a moderate rate of interest. Since the policy of high
surtaxes this class of. loans has largely disappeared. The investors
who formerl}^ put their money in such loans UOAA^ find it more profitable to go elscAA^here. The result is that capital has been diA^erted
from building operations, there has been a great shortage of houseSy
rents have enormously increased, and people of small or moderate
means liAdng in rented houses have been compelled to pay greatly increased rents, so that in the end the burden has fallen upon the very
class sought to be relieved. Of course, it is not meant that the whole
blame for this situation rests upon the diversion of capital due tO'
high income taxes. Other factors contributed. But after making
allowance for these the fact remains that a veiy substantial part of
the difficulty has been brought about b}^ the diA^ersion of capital into
other channels, and the situation is mentioned only to bring home in a
specific wa}^ hoAv directly the diversion of capital affects the people
of small incomes.
The consequence of this diversion of capital is at once greatly to
increase interest rates upon the capital which productive industry
is able to obtain, and this in time means lessened production and
increased costs. The less capital there is available the greater the
struggle to get it and the higher the price paid therefor, which
means, of course, increased cost of production. At the same time
the less capital there is available the more production is prevented




SECRETARY OF THE TREASURY.

19

or diminished, and lessened production in itself- means increased
cost.
While everything that increases the cost of production naturally
and incAdtably increases the cost to the consumer, yet i t does not
seem reasonable to believe that all taxes are necessarily passed to the
consumer in the form of increased prices, for naturally there comes
a place where the price is such that the consumer can no longer
afford to buy, or must buy less, and in the end both the producer and
the consumer share in the disastrous consequences of such taxation.
The point noAv emphasized is that the evil effects of high surtaxes
fall not upon the indiAddual Avhose income is seized and taken, but
ultimately almost entirely upon the mass of the people who are
thereby depriA'^ed of the benefits Avhich would result from the free
floAv of commercial transactions and the use of the additional capital
Avhich would be aA^ailable for productive enterprise.
Freedom of business transactions essential.
The revenue to be obtained by the Government from this class of
taxes depends upon transactions in trade and commerce which bring
about income available for payment of taxes. I t is highly desirable,
in the interest of the production of revenue, that the volume of
business transactions giAdng rise to gain shall be as great as possible, and to this end it is essential that the natural laws of trade
and commerce and the free flow of business shall not be interfered
with or prevented.
But the direct effect of these very high taxes is to hinder and prevent business transactions which would otherwise take place. A
man may have property which he has held for years and which has
greatly increased in value, and he Avduld like to sell it, but if he does
a large part of the gain would have to be paid out in taxes. He
would rather keep the property-than sell it, pay the tax, and invest
what is left in something else. At the same time the party desiring
to buy this property, if he obtained it, would improA^e it with buildings. What is the result? The transaction does not take place, and
the community loses the advantage which would come in the stimulation that Avould arise from the transactions resulting from the
buyer's improvement of the property, and it also loses.the advantage
of the seller's putting his money into some other form of investment,
Avhich in turn would give rise to business transactions. The same
thing on a miich greater scale is true in manufacturing and mercantile lines. Men haA^e built up enterprises to the point where they
are highly successful. They would like to take their profit and turn
the business over to younger men to carry on. These transactions
are highly desirable not only for the parties but for the community.




20

REPORT -ON T H E FINANCES.

yet they are absolutely stopped, because if made the seller Avould
have to pay in one year a tax on a gain which has been the result
of perhaps the better part of a lifetime of effort. And in all such
cases the Government gets no tax, whereas if the rates were reasonable the transactions would take place and the Government's revenues
would benefit accordingly.
The free interchange of property in business transactions is essential to the normal prosperity of the country, and each such transaction has a direct tendency to bring about others pf like character
with the result of increasing the amount of gain or income available for taxation; but AA^hen the tax is so high as to act as a deterrent
against usual and desirable, business transactions, and the A^^olume
of such transactions is thereby lessened, the inevitable result is for
the tax to become less and less productive.
I t is fpr these reasons that, particularl}^ in the higher brackets, a ^
loAver tax rate will produce more revenue in the long run than excessiA^e rates. So long as the high rate stands in the way.of accomplishing bargains, and sales, the Government receives no t a x ; but
at a lov/er rate the transactions proceed and the Government shares
in the profits.
The injurious effect of high rates on the revenues.
The actual effect of the high surtaxes Can readily be seen in the
statistics published by the Bureau of Internal Eevenue.
The following table shows in comparative form, for the years 1916
to 1919, inclusive, the total number of returns of all classes and the
returns of incomes over $300,000; the total net income in the same
way, and also the investment income.
Table sho'wing decline of taxable incomes over $300,000.
N u m b e r of r e t u r n s .

N e t income.

All classes.

1916
1917
1918
1919.

•-....
.
. .

437,036
3,472,890
4,425,114
5,332,760

Incomes
over
.$300,000.
1,296
1,015
627
679

I n c o m e from d i v i d e n d s , interest, a n d i n v e s t m e n t s .

All classes.

Incomes
over
$300,000.

All classes.

$6,298,577,620
13,652,383,207
15,924,639,355
19,859,491,448

$992,972,986
731,372,153
401,107,868
440,011,589

$3,217,348,030
3,785,557,955
3,872,234,935
3,954,553,925

Incomes
over
$300,000.
$706,945,738
616,119,892
344,111,461
314,984,884

The years under consideration, 1916 to 1919, inclusive, were, on the
whole, years of unexampled prosperity, and of earnings and profits
beyond those ever known before in an^^ like period in the history
of the country. Notwithstanding this, and while the total income of
all classes increased, at the same time there was a striking decrease in




SECRETARY OF TFIE TREASURY.

21

'taxable incomes of $300,000 and over—the drop being from $992,972,98.6 in 1916 to $44.0,011,589 in 1919,
The effect of the high surtaxes in the other brackets is apparent
from a brief study of the statistics regarding taxable. iuA^estment
income.
I n the bracket "Incomes of $300,000 and over," the taxable in, vestment income declined from $746,614,591 in 1916 to $328,360,613 in
1919; in the bracket " $100,000 to $300,000," the decline was from
$602,853,543 in 1916 to $427,910,905 in 1919; and in the bracket
" $60,000 to $100,000," the decline was from $366,614,917 in 1916 to
$323,743,874 in 1919.
If we take the taxable incom'e from, interest, exclusive of interest
on Government obligations, the decline is still more striking, the
figures being as follows:
Incomes, $300,000 and o v e r :
1916
1917
1918
1919
Incomes, $100,000 to $300,000:

1916
1917
1918
1919———
Incomes, $60,000 to $100,000:
1916
1917
1918
1919

-

$165, 733, 900
111, 468,127
74, 610, 507
60, 087, 093

-

158, 870, 428
119, 539, 786
91, 030, 392
91, 467,182

'
•

.

—_

.93, 280, 583
75, 375, 484
65, 784, 062
68, 814, 933

The foregoing brackets represent the incomes subject to surtaxes
under the revenue act of 1918, respectively, at 63 to 65 per cent.
52 to 63 per cent, and 29 to 48 per cent. ^ To these figures should be
added the normal tax of 8 per cent in order to find the total tax
obligation.
In Adew of these figures, is it not clear that these high surtax
rates are rapidly ceasing to be productive 6f revenue to the Government? And is it not equally-clear that their effect has been to
divert into improductiA^e channels not merel}- the income on the old
investments, but to force a large part of the old investment capital
into unproductiA^e channels?
Business 2^'^'ofits.
The revenue act of 1921 has repealed the excess-profits tax laAv,
effective December 31, 1921. While this law was justified as a war
measure, its continuance in time of peace, and particularly under




22

REPORT ON T H E FINANCES.

present conditions, would have been indefensible. During the warperiod, when every line of industry was running at full capacity
and prices and profits were highly inflated, the act served to produce
a large revenue for the Government and its inequalities were not
so much felt by the taxpayers. Its burden, however, fell very unequally upon the business interests of the country. The higher
rates of tax were imposed, generally speaking, upon the small or
moderate-sized corporations rather than upon the large ones. Owing
to the difficulty of determining the capital actually used to carry
on any industry, it was impossible to apply the act without very
great hardship in many cases. The administratipn of the act also
was extremely difficult, and the depiartment even yet has not been
able to disppse of all the cases arising under the law for the year
1917, the first year of its operation.
The repeal of the excess-profits tax has made necessary a very
considerable increase in the flat tax on net corporate income, the
rate under the ncAv laAv being 12^ per cent. I n addition there is the
capital-stock tax, which amounts, roughly speaking, to about 2 per
cent of the net income. This makes a total tax equivalent to nearly
15 per cent on corporate net income; and when we remember that
the great bulk of the business of the country, both large and small,
is carried on under corporate form and that the net income must
largely be distributed in dividends, and that these dividends are
then in turn subject to surtax in the hands of persons receiving
them, it is at once seen that the resulting taxation to persons engaged in productiA^e business is very heavy. For instance, a stockholder subject to surtax at 10 per cent really pays about 25 per cent,
15 per cent through the corporation and 10 per cent as surtax on his
dividends; while a stockholder subject to 50 per cent surtax would
be taxed about 65 per cent on such profits.
Estate tax.
Much of what has been said respecting the high surtaxes applies
equally to the high rates of taxation upon estates. The continuance
in time of peace of the very high estate taxes imposed during the
emergency of war should receiAT^e serious consideration.
There are two chief objections to the present high rates, running as
they do up to 25 per cent of the net amount of the estate, which
should be emphasized.
The first is that taxes at such rates, which seize upon and take away
so much of the capital of the country, are fundamentally wrong.
The Nation, just as the iridividual, should not use up its capital in
payment of its ordinary expenses. The money Avhich is taken by^
way of such taxes is, to a large extent, the capital which is in use




SECRETARY OF T H E TREASURY.

23

tind necessary in carrying on the business of the country, and just
to the extent that the Government seizes upon and takes this capital
i o r its own income its loss must be made good out of the thrift and
savings of the people of the country. .
The more serious difficulty, however, in this respect is with the
high rates.. Where the rates are moderate and thereby are widely
spread and take but a moderate amount of capital from each estate,
their effect is not so great; but when the rate is high and falls heavily
in a fcAv places, and the amount of capital seized and taken away
irom certain lines of industry, or certain particular industries, is
large, the evil effects are very harmful.
I n the second place, there is the destructive effect upon values. If
all the Avealth of an estate consisted of money, the eAdl results of
such taxes Avould be much less. But the wealth of estates does not
consist of money, nor, in fact, in most cases, of property readily convertible into money. An estate consisting principally of Government bonds or municipal securities is of less real value to the community than is the estate that is invested in property, in any line of
productiA^e industry giving useful employment to large numbers.of
people. And yet, the estate invested in tax-free securities would be
much less affected by the tax than the estate invested in real estate,
in manufacturing plants, in merchandising, in farming, or in any
line of productive industry.
^
Again, when a man actively engaged in business dies, leaving an
estate of considerable size, his family is called upon to providefor
the payment not merely of the Federal estate tax, but, in many
cases, an inheritance tax to the State in which he lived. There is
also frequently a tax to be paid to the State where some part of the
property is located, and often a tax must be paid upon the value of
shares of stock to the State where the company is incorporated. So
that, there may be as many as four different taxes to be paid upon
the same property. I n addition, there is usually a greater or less
amount of indebtedness existing which must be met. These obligations can be met only by payment in money. The estate can not
take its property and simply divide it up, giving to the Nation, to
the State, and to the creditors a proportionate share of the actual
property. Those ultimately entitled to share in the distribution may
take their portions in property, but, before that can be done, actual
cash must be found for the payment of the taxes and the debts;
and the larger these are iri proportion to the amount of the estate,
the more difficult the task becomes.
In the ordinary course of business, there is just a certain amount of
property that changes hands from year to year. " There is a market
for a certain amourit and no more. The extent of this market, that is,
the buyers who are willing to buy at fair prices, is dependent largely



24

REPORT ON THE FINANCES.

upon the amount and character of the property coming upon the market. There may be a ready market at a reasonable price for a limited
ainount of the shares of an industriar company, or for a mediumsize manufacturing property, .or for residence or business property
of moderate price. But the larger the amount of property that
must be sold, the more difficult it becomes to find buyers for i t ;
and if the sellers are under some absolute need to sell,, as-is the
case where the money must be proAdded within a limited time to
pay taxes and debts, then just, that much less ready and willing are
bidders to buy, and just so much greater is the sacrifice 'that the
sellers must make in order to obtain cash. The same thing is seen
constantl}^ in the commercial world. If a large amount of any of
the staple commodities, even such as cotton, Avheat, or any article
of consumption, is suddenly pressed upon the market, and .the holder's
needs force him to sell, there is an immediate and great decline in
the price which he is able to obtain. What is true of articles of daily
consumption is very much more true as respects iuA^estments in property, such as largely makes up the estates called upon to pay these
taxes.
It has become notorious in recent years, Avhenever a man of means
dies, leaAdng his estate obligated to pay a large amount by Avay of
taxes or debts, or both,"that there is an immediate decline in all
classes of securities in which he is known to be interested. And
when, under these conditions, the estate is required to make a sale
of its property, of whatcA^er class it may be, there is not merely a
large loss to the estate—a large shrinkage in the value of the property beloAv its real AVorth—but there is also a loss inflicted upon cA^eryone else Avho is interested in these properties, especially if at the
same time they desire to, or must, sell.
The extent of the shrinkage of values and the losses caused b}" the
forced liquidation of many estates is not generall};^ realized, for the
present high rates have been in existence but a short time and their evil
effects, which Avill naturally increase if these rates continue, are only
gradually coming to be recognized.
The effect of this breaking doAvn of values tends directly toAvard
making the tax less productive pf revenue, and the longer these rates
continue with the successiA^e coming upon the market of estates, the
more their effect will be felt in the rcA^enues, for each forced liquidation tends to make a ncAV and loAver A^alue upon Avhich all taxes must
be based.
A large part of the revenue now deriA^ed from the estate tax comes
from the more moderate rates. Taxation which is destructive of
that basis of value on which all taxes rest is neither logical nor wise
in principle, and in any revision of our tax laws serious attention
should be mven to this subject.




SECRETARY OF T H E TREASURY.

25

The remedy.
I t Avould not seem either Avise or necessary suddenly to change
from our present system of taxation to new arid untried plans; and
the evils which have been discussed can be corrected without doing
anything of this sort. The necessary adjustments can readily be
made by retaining most of the present taxes, but substantially reducing the rates, and supplementing the revenues by some additional
taxes.
The income tax is firmly embedded in our system of taxation and
the objections made are not to the principle of the tax but only to
the excessively high rates. We hear much of the need of simplifying
our tax laAvs arid there is room for this. The greatest simplification
that can be made is in the reduction of the rates. So long as the
rates were low,.there Avas not much difficulty in the administration
of the laAv, even though the system was entirely new and the organizatiori administering it unfamiliar with the operation of such
a law. The complexity bf the laAV, so far as concerns the income
tax itself, has arisen largely out of the high rates which make every
point that arises involve substantial amounts of money, and Avhich
means that each possible question is contested by the taxpayer and
by the Government, Avith resulting dela^^ in the collection of the
revenue, irritation and annoyance and expense on the part of the taxpayer, and costly litigation. With moderate rates, very much of this
difficulty would disappear.
The amount of revenue involved in anj^ such reform is not nearl}^
so great as is generally supposed.
To reduce the surtax rates to a maximum of 25 per cent, and grading the reductions through all the brackets, would mean an apparent
loss of about $130,000,000 in revenue. A 20 per cent maximum rate ^
on the same basis Avould involve a revenue loss of about $200,000,000.
Other adjustments AA^hich should be made Avould probably iuA^oh^e an
amount equalto that made in the surtax rates. This loss of revenue,
hoAvever, Avould not be permanent, for the reduced rates Avould ultimately be productive of more revenue than higher rates, due to the
increase in taxable transactions.
If this loss of revenue could not be met by rigid economy in expenditures, the revenue required could be raised either by placing a tax
on certain specific articles, or by a loAv-rate general tax on a broad
class of articles or transactions. Such taxes as those noAv imposed
on automobiles and tires have been found simple and inexpensiA^e of
administration, and the collection is always substantially current;
they have been steadily productive of revenue, and have been without injurious effects upon the country. I n vicAv of past experience,
a general tax either of this or like character upon a broad class of




26

REPORT ON T H E F I N A N C E S .

articles or transactions could be readily administered; and the rate
could be made sufficiently low as not to bear unduly upon any class
and at the same time produce a large amount of additional revenue.
By retaining the income tax with reasonable surtax rates, which iri
peace times ultimately should not rise above 10 per cent, taxpayers
would still be required to contribute in- proportion to their ability
to p a y ; while by placing a certain amount of tax on specific articles,
or classes of articles, or transactions, at so low a rate that they could
readily be borne without injury, the income tax could be materially .
simplified, the tax laws could be more readily administered, and at
the same time the needed revenues would be raised without the evil
effects noAv resulting from the present excessive rates of taxation.
B U R E A U OF I N T E R N A L R E V E N U E .

Progress has been made in the audit and settlement of income and
profits tax returns for past years, but there is still a vast amount
of accumulated cases to be disposed of before the work can be
brought to a current basis.
The magnitude of the task placed upon the bureau by the income,
war profits, and excess profits taxes can hardly be exaggerated.
Under these laws it became necessary, beginning with the returns
for the year 1917, to make a careful examination, and in most case's
an audit, of the returns for every financial, trading, and industrial
concern in the United States, Avith' the result that, Avhereas prior to
1917 the bureau had been able to keep reasonably abreast of its work,
since that time it has fallen further and further behind. The most
difficult problems were those arising in connection with the excess
profits tax, and particularly the question of invested capital as applied to the widely varying conditions in which different corporations
were placed. The rule prescribed by the act for ascertaining inA^ested capital was necessarily an arbitrary one, involving in many
cases great hardship and serious discrimination betAveen corporations
in similar lines of business. As a result the work of the bureau has
become more and more congested, the expense to the taxpayers of
handling the cases has been enormous, Avhile the cost to the Govern- .
ment has steadily increased.
The repeal of the excess profits tax, effective at the end of the
present calendar year, will, of course, afford great relief in this respect and makes it easier to formulate practical plans for disposing
of the accumulated work.
The condition of the work in the bureau has been the subject of
much thought and consideration and a careful study has been in
progress for scA'Cral months, and is still going on, for the purpose




27

SECRETARY OF THE TREASURY.

-of determining the amourit of the accumulated work, the progress
being made, and what steps it is practicable to take for the purpose
oi cleaning up this accumulation and bringing the Avork of the bureau to a current basis.
As a result of this study it was found that for the years 1917 to
1920, inclusiA^e, there remained undisposed of at August 31, 1921, the
audit of 1,488,950 personal returns and of 689,425 corporation, returns.
The following table indicates approximately the condition of the
work in the bureau on August 31, 1921:
Statement of condition of i.vork, income-tax unit, Aug. 31, 1921.
Total returns
Total
audited. •
returns
filed or to
be hanPer
Niunber. cent.
dled.
Personal:
1917
1918 .
1919
. 1920
Total
Corporation:
1917
:
1918
1919
1920
Total

.

:
"

830,000
660,000
850,000
890,000

827,702
627,227
285,953
168

3,230,000 1,741,050
323,138
368,290
368,322
349,500
1,409,250

99.7
95
34
54

Balance to be
audited.
Number.

Per
cent.

2,298
32,773
564,047
889,832

0.3
5
66
100

1,488,950

46

305,417
94.5
278,323 • 75.6
133,351
36.2
2,734
.8

17,721
89,967234,971
346,766

5.5
24.4
63.8
99.2

719,825

689,425

48.9

51.1

NOTE.^The personal returns do not include the smaller returns which are
handled largely in the collectors' offices. Many of the returns shown as " to be
audited " vvere in A^arious stages of progress.

Generally speaking, of course, the tax shown by the face of these
accumulated returns has been collected currently when due, and there
remains only such additional tax as may be developed by the audit
and investigation. The cases remaining are largely the ones less
productiA'C of revenue and more difficult to handle, due to the fact
that heretofore, in order to get as much revenue as possible, the cases
most easily handled and yielding the largest revenue Avere, to a great
extent, given earliest attention.
I t Avas found that the Avork of the bureau had been much interfered with by Avar conditions, by lack of adequate office space, by the
fact that such space as could be had Avas widely scattered, and by the
difficulty of obtaining and keeping an efficient personnel; that there
were UOAV engaged in the Avork making audits, examinations, assessments, and settlements a total force of approximately 8,000 persons;
that the Avork on the cases in hand Avas in all stages of progress, and
that assessments for additional taxes were being made at an average




28

REPORT ON T H E FINANCES.

rate of over $30,000,000 per month. I t Avas apparent that no sudden
or radical changes in plans or methods of handling work were eith sr
practicable or advisable, since it was important to maintain a steady
progress of Avork. As a result, the study and plan being pursued
are on the lines of the gradual introduction of such changes in
methods as can bedntroduced Avithout interfering with or breaking
down the existing organization and at the same time bring about
greater efficiency in the Avork and increased expedition in the disposition of cases. This is being done Avith the cooperation of those
engaged in the work, and has already resulted in very considerable
improvement and increased production.
The situation as regards claims riiade by taxpayers by Avay of
abatement, or for credit, or for refund in respect of taxes claimed to
have been erroneous^ or illegally assessed may be taken as typical,
although this presented one of the greatest points of congestion and
accumulation of work. A thorough and careful investigation of the
pending claims shoAved that on October 21, 1921, there Avere pending
claims filed by taxpayers as fOUOAVS :
Number
of claims.
Abatement of taxes assessed but not paid
'.
Cred it.claimed on account of alleged jprevious overpayments.
Refund of taxes paid
Total

57,519
20,146
79,612

Amount.
$015,181,744
138,097,506
253,089,606
1,006,968,856

Many of these claims haA^e been pending for a considerable period
of time and it is manifestl}^ unfair to the taxpa3^ers and to the
Government that this condition should continue.
As a result of the study that has been made, plans have been
formulated and put into effect for the handling and disposition of
these claims which it is expected Avill enable the pending claims
substantially to be disposed of b,y the end of the present fiscal year.
The prompt disposition of the abatement claims Avill result in the
collection of a" large amount of taxes now being held up by the
pendency.of these claims.
As rapidly as it can be done, consistently Avith the proper consideration of the cases, both from the standpoint of the taxpayer
and of the GoA^ernment, it is proposed to expedite the disposition
of the work which has accumulated from past years, but the progress
which can be made in this respect can only be* determined by actual
experience in the future.
The Avork involved is of a complicated and difficult character, j)articularly in the cases iuA^olving large amounts of money, and requires special training and skill, so that additional personnel is not
readih^ or quickly aA^ailable. In addition to this the bureau must




SECRETARY OF THE TREASURY.

29

keep within the limit of its appropriation for this Avork, and it
does not seem advisable greatly to expand the permanent organization to any greater extent than is absolutely required, especially as
the excess profits tax ends Avith the present year. However, the
problem Avill continue to receiA^e the very best thought of the department to the end that taxpayers may know as promptly as possible
their tax liability, arid that the work shall be handled with expedition and promptness and be as nearly current as this class of Avork
can be made.
' ,
Internal revenue collections^ for the fiscal year ended June 30,
1921, aggregated $4,595,000,765.74, as compared Avith $5,407,580,251.81 for the preceding fiscal year—a ciecrease of $812,579,486.07.
This decrease in collections is due principally to a decrease of $728,798,329.85 in the collections of income, and profits taxes, Avhich
aggregated, for the fiscal year 1921, $3,228,137,673.7^5 as compared
with $3,956,936,003.60 for the fiscal year 1920.
The decrease in the collections of income and profits taxes is due in
p a r t to the fact that the profits tax rates imposed upon corporations
for the year 1919 Avere less than those im^posed upon corporations
for the 3^ear 1918, the effect of the reduced rates upon the revenues
of the Government not being fully felt in the fiscal 3^ear 1920.
During the fiscal year 1,570,937 income and excess profits returns
were audited, compared A ith 697,853 for the preceding fiscal year.
V
As a result of these audits, additional taxes amounting to $357,078,422.86 were assessed. Of this amount $113,664,275.99 was assessed
as the result of office audits and $243,414,146.87 as the result of field
examinations by revenue agents.
The number of claims adjusted and scheduled during the year was
83,668, compared AAdth 57,211 the preceding year. The number of
claims received was 128,523, compared Avith 100,443 the preceding
3^ear. There was a marked increase in the number of claims disposed
of during the last quarter of the fiscal year as compared with the
preceding quarters.
The committee on appeals and review, Avhich hears appeals of
taxpayers from the decisions of the income tax unit, has had a busy
year. I t received 97 appeals from taxpayers and 95 requests for
1 The figures concerning internal-revenue receipts a s here giveii differ from figures
carried in other Treasury statements showing the financial condition of the Government,
because the former represent collectioris by internal-revenue ofBcers throughout the country, including deposits by postmasters of amounts received from sale of internal-revenue
documentary s t a m p s , while the l a t t e r represent the deposits of these collections in t h e
Treasury or depositaries during the fiscal year concerned, t h e differences being due to the
fact t h a t some of the collections in the l a t t e r p a r t of the fiscal year can not be deposited,
or are not reported to t h e Treasury as deposited, until after J u n e 30, t h u s carrying them
into the following fiscal year as recorded in the stateraents showing the condition of the
Treasury. (Department Circular No. 176, par. 19.)




30

^

REPORT QN T H E

FINANCES.

advice from the income tax unit. Four hundred committee recommendations and 65 formal memoranda were written by the committee and approved by the commissioner.
Estate tax collections for the fiscal year aggregated $154,043,260.39^
compared Avith $103,635,563.24 for the preceding fiscal year. The
total number of estate tax returns filed during the year Avas 11,833..
As a result of field examinations and division audit additional tax.
in the sum of $13,290,685.33 was disclosed.
A classified table shoAving the general sources of internal rcA^enue
from 1863 to 1921 is included in this report as Exhibit 78, page 383..
PROHIBITION

A N D NARCOTIC

ENFORCEMENT.

The national prohibition act of October 28, 1919, imposed duties
upon the Bureau of Internal Eevenue Avhich were new to it, and from
the effective date of the act a considerable portion of its energies havehad to be dcA^oted to the enforcement of a regulatory act instead of
to a tax-collecting act. I n this Avork the bureau has no doubt.made
mistakes. The act has in some instances been misinterpreted and
the means taken to enforce it have not ahvays proven effective. T h e
past year, hoAvever, has seen cpnsiderable progress. Many of the
earlier mistakes of the bureau have been corrected. The regulations
have been amended, the act has received judicial interpretation in
the courts, and many points have been cleared up by opinions of the
Attorney General.
The proper enforcement of this laAv is a matter of great difficultyy
and the effort of the department is UOAV being directed to the building up of an efficient organization of trained men, by Avhich means
it is expected that better results may be obtained. Attention is also
being given to the matter of placing as fcAv restrictions upon those
engaged in legitimate business as can be done consistentlv with the
proper enforcement of the laAv.
Gratifying results have been obtained by the small force of
narcotic inspectors and agents assigned to the enforcement of
the Harrison Narcotic Act. Through the medium of nionthly returns of importers, manufacturers, producers, and wholesale dealers, all transactions by registered persons are under proper surveillance and the dealings in narcotics have been effectively controlled. Illicit traffic by nonregistered dealers, due in a large measure to smuggling drugs, continues as a great menace. The courts
haA^e shoAvn in their decisions increased impatience with these Adolators, each decision seemingly going a step further in the proper enforcement of the law. I n several instances physicians convicted of
commercializing in narcotic drugs have had their licenses to practice
medicine revoked'and are serving heavy prison sentences.




SECRETARY OF THE TREASURY. •

31.

ECONOMY I N G O V E R N M E N T E X P E N D I T U R E S : BUDGET S Y S T E M .

I n connection Avith the revision of the internal-tax laws and on
other occasions the Treasury has frequently emphasized the vital
importance of reductions in Government expenditures. I n the letter
of April 30, 1921, to the chairman of the Committee on Ways and
Means, the Secretary said, after referring to the expenditures for
1921:
The Nation can not continue to spend at this shocking rate, x\s the President
said in his message, the burden is unbearable, and there are tAvo avenues of
relief. "One is rigid resistance in appropriation and the, other is the utmost
economy in administration." This is no time for extraA^agance or for entering
upon new fields of expenditure. The Nation's finances are sound and its credit
is the best in the world, but it can not afford reckless or wasteful expenditure.
New or enlarged expenditures can not be financed without increased taxes or
new loans. Etspenditures should not eA-en be permitted to continue at the
present rate. The country is staggering under the existing burden of taxation
and debt and clamoring for gradual relief from the war taxation. It may be
counted upon not only to exert effective pressure, against increased expenditures
but also to glA^e Its whole-hearted support to all sincere efforts to reduce
-expenditures.
The. last Congress made a creditable record in reducing appropriations, and it
effected substantial economies. Notwithstanding the reduced appropriations,
however, •e;s:penditures have continued unexpectedly high, and the reduction in
expenditures has barely kept pace with the shrinkage in receipts. Reduction of
appropriations, mbreoA^er, will not of itself be effectiA^e to reduce expenditures
unless at the same time the Congress avoids or controls measures which result
In expenditure Avithout an apparent appropriation. Reappropriations of unexpended balances, revolving-fund appropriations and appropriations of receipts,
.^and other indefinite authorizations of expenditure have in the past been responsible for hundreds of millions of dollars of actual cash outgo.
I n the letter of March 9, 1921, to the banking institutions of the
country, the Secretary had previouslj^ said:
These figures as to the public debt and the current operations of the Treasury shoAV that the country's finances are sound, but that the situation calls for
the utmost economy. The Nation can not afford extravagance, and so far as
possible it.must avoid entering upon new fields of expenditure. The heavy
requirements of the GoA^ernment on account of necessary expenditures, including interest and sinking fund on tlie public debt and the maturity of seven and
one-half billions of short-dated debt within the next tAvo years or thereabouts,
make it imperative that the greatest care and economy be exercised in matters
affecting Government expenditure. The people generally must become more
interested in saving the Government's money than in spending it. A thoroughgoing national budget system must be established and the Government's ex" penses brought into relation to its income.
The year under review has shown extraordinary progress toward
the reduction of Government expenditure, and striking cuts in expenditure have been made for the current fiscal year. The estimates
for the fiscal year 1923, as presented in the budget and iridicated




32

REPORT ON T H E FINANCES.

elsewhere in this report, show a tentative excess of expenditures OA^er
receipts in the amount of about $167,000,000, due in large part to the
reduction in estimated revenues. I t is confidently expected, however,
t h a t with continued economy and effective pressure for reduced expenditures in all quarters it will be possible to overcome this threatened excess of expenditure and go through the year with a balanced
budget.
Under the act approved June 10, 1921 (budget and accountingact, 1921), proAdsion Avas made for a national budget system, and an
independent audit of Government accounts, thus bringing to fruition
the desires .and efforts of many years for budgetary reform in the
handling of the Federal finances.
I n conformity Avith the provisions of this act, the Bureau of the
Budget was established in the Treasury Department, and a Director
of the Budget appointed by the President. The bureau in its functions has been guided by the utterance of the President in his message, that there were two avenues of relief from the financial burdens
of the Nation, namely: " One is rigid resistance in appropriation,
and the other is the utmost economy in administration.-' The success of the budget system depends largely upon effective coordination of the activities of the GoAT^ernment and general cooperation
in the efficient control of expenditures and the enforcement of
economies in the use of the appropriations authorized by Congress.
Through the organization perfected by the Bureau of the Budget,
all departments and independent establishments of the Government
are responding to the call to iiphold and join in the movement now
being directed by the Budget Bureau toAvard economies in the expenditure of public funds, the limitation of activities, the elimination of duplication of Avork, the more efficient distribution and sale
of surplus supplies and equipment, and improved methods of administration and operation.
The progress which has been made in the reduction of Government
expenditures is shown by the following table:
.
"

•

Estimated,
fiscal year
1922.

Estimated,
fiscalyear
1923.

S5,115,927,689.30

S3,604,980,166

S3,143,415,927

422,113,000.00

387,942,200

369,338,800

5,538,040,689.30

3,992,922,366

3,512,754,727

Actual, fiscal year Actual, fiscal year
1921.
1920.

•S6,403,343,841.21
Ordinary expenditures
Pubhc debt expenditures charge78,733,400.00
able against ordinary receipts...
Total ordinary expenditures (including public debt expenditures chargeable against ordinary receipts)

6,482,077,241.21

LOANS TO FOREIGN GOVERNMENTS.

On November 15, 1921, there were held by the United States
Government obligations of foreign Governments under different eate-




33

SECRETARY OF THE TREASURY.

gories, as set out in the following statements, which show in detail
the obligations of each class, the principal amount due from each
country, tod, in the case of loans under the Liberty bond acts, the
obligations acquired under the first Liberty bond act, and. the obligations acquired under the second Liberty bond act, as amended and
supplemented. From, these statements it will be seen that the obligations purchased under the Liberty bond acts are all demand obliga-.
tions, and that the other classes of obligations mature at various
fixed dates, beginning June 30, 1920, and extending to July 5, 1930.
I t is expected that the obligations held by the United States Grain
Corporation (received under the act of March 30, 1920, on account
of the sale of flour for relief purposes), will,dn due course, be turned
OA^er to the Treasury Department, but pending the liquidation of the
affairs of the corporation it still holds these obligations.
- Obligations of foreign Governments held by the Treasury for advances made
under the Liberty bond acts.
... ..';^
First Liberty
b o n d act.

Country.

Belgium
..'.
Cuba..
Czechoslovakia .
France
Great B r i t a i n
Greece .
Italy
Liberia
Roumania
Russia.
Serbia...
•

$35,000,000.00
650,000,000. 00
1,155,000,000. 00
175,000,000. 00
97,500. 000. 00
1,500,000. 00

....

Total

12,114,000,000.00

Second L i b e r t y
b o n d act as ^
"
amended and
supplemented.

Total under
Liberty bond
acts.

$312,691,566.2:3
$347,691,566.23
8,575,000.00
8,575,000.00
61,256,206. 74
61,256,206.74
2,300,762,938.19 2,950,762,938.19
3, Oil, 318,358. 44 . 4,166,318,358. 44
15,000,000.00
15,000,000.00
1,473,034,050.90 1,648,034,050.90
26,000.00
26,000.00
23,205,819. 52
• 23,205,819.52
187,729,750. 00
90,229,750.00
26,175,139. 22
24,675,139.22
7,320,774,829. 24

Present
interest
rate.

Maturity.

P e r cent.'
5 Demand.
5
Do. '
5
Do.
5
Do.
5
Do.
Do.
Do.
Do.
5
Do.
5
Do.
5
Do.
5

1

9,434,774,829.24

1 Advances up to Sept. 24,1917.

Obligations received from the Secretary of War and the Secretary of the Navy
on account of sales of surplus loar materials {act of July 9, 1918).
Country.

Belgium

Principal
amount
payable.

D a t e of
maturity.

Interest
rate.

A p r . 10,1922
Aug. 5,1922
A u g . 21,1922
A p r . 9,1930
do
do........
do

Percent.
5
5
5
5
5
5
5

May
June
Aug.
Oct.
Feb.
May

$19,000,000.00
8,392,097. 57
.196,483.57
693,346.76
412,093. 04
399,340.64
779,370.96

D a t e of •
obligation.

A p r . 10,1919
A u g . 5,1919
A u g . 21,1919
J u l y 1,1920
Aug. 1,1920
N o v . 1,1920
J a n . 1,1921

Total.

June
June
June
Oct.
Jan.
June

$29,872,732. .54
Czechoslovakia

5,000,000.00
5,000,000.00
4,902,994.94
2,464,950.38
1,291,903.85
1,962,145.37

Esthonia

5,000,000.00
5,000,000.00
2,213,377.88

29,1919
15,1919
10,1919
14,1919
10,1920
.1,1920

30,1922
30,1923
30,1924
14,1922
28,1923
30,1925

5
5
5
5
5
5

J u n e 30,1922
J u n e 30,1923
J u n e 30,1924

5
5
5

20,621,994. 54
J u n e 6,1919
J u n e 11,1919
J u n e 29,1919
i2,2i3,377.88

70073--FI1921-




34

REPORT ON THE FINANCES.

Obligations received from the Secretary of War and the Secretary of the Navp
on account of sales of surplus war materials {act of July 9, 1918)—Contd.
Principal
amount
payable.

Country.

Total.

$400,000,000.00
774,382.59
6,566,762.42

France

Latvia
Lithuania
Poland

2,521,869.32
4,159,49L96
10,000,000.00
10,000,000.00
10,000,000.00
10,000,000.00
7,890,939.27
5,536,867. 71
3,941,803.61
2,266,709.66

Roumania

Aug.'
July
May
$407,341,145.01
2,621,869.32
4,159,491.98

5,000,000.00
5,000,000.00
2,922,675.42
406,082.30
5,000,000.00
5,000,000.00
10,000,000.00
50,350.28
281,205.51
4,646,465.20

1,1919
5,1920
9,1920

D a t e of
maturity.

Aug.
July
May

1,1929
5,1930
9,1930

Interest
rate.

Per cent..
5
5-

J u n e 27,1919
.do
A u g . 13,1919

59,636,320.25

Russia
Serbs, Croats, a n d Slovenes

D a t e of
obligation.

12,922,675.42
406,082.30

J u n e 30,1922
J u n e 30,1923
J u n e 30,1924

5
55
5
5
5.
5
5.
5
55
5
5=
5

A u g . 8,1919
J u n e 13,1919
A u g . 30,1919
.do
Dec. 20,1919
A p r . 15,1920
A p r . 29,1920

J u n e 30,1922
do
J u n e 30,1923
J u n e 30,1924
do
A p r . 15,1924
J u n e 30,1925

555.
5'
5.
5
5.

J u n e 28,1919 J u n e 30,1922
do
do
J u n e 3,1919 . - - . . d o
J u n e 30,1923
do
J u l y 19,1919 J u n e 30,1924
do
J u l y 22,1919
do
J u l y 31,1919
1,1925
Oct.. 1,1919 Oct.
Oct. 15,1919 O c t . 15,1925
A p r . 22,1920 M a r . 27,1926

24,978,020.99
Total

-

574,673,710.21

Obligations received from the American Relief Administration {act of Feb. 25,.
1919).
Country.

Principal
amount
payable.

Armenia
Czechoslovakia
Esthonia
Finland

$8,028,412.15
6,428,089.19
1,785,767.72
3,289,276.98
4,992,649.19

Latvia.
Lithuania
Poland

2,610,417.82
822,136.07
10,000,000.00
10,000,000.00
31,671,749.36

Russia
Total




4,465,465.07

Total.

D a t e of
obligation.

D a t e of
maturity.

Interest
rate.

$8,028,412.15
6,428,089.19
1,785,767.72

J u n e 30,1919
do
A u g . 11,1919
J u n e 30,1919
J u l y 1,1920

J u n e 30,1921
J u n e 30,1923
J u n e 30,1921
do
do

Percent.
5
5
5
5
5

J u n e 30,1919
do
:....do
do
do

do
do
do
J u n e 30,1922
J u n e 30,1923

5
5
5.
5
5

J u n e 30,1921

5-

8,281,926.17
2,610,417.82
822,136.07

"*5i,*67i,*749.'36"
4,465,465.07 J u l y
84,093,963.55

1,1919

SECRETARY OF THE TREASURY.

35

Obligations held by the XJyiited States Grain Corporation {act of Mar. SO, 1920).
Principal
amount
payable.

Country. •

Armenia..

.

Austria. •.
Czechoslovakia
Hungary Poland..

$793, 733.40
472,533.00
656,190.00
748,725. 00
129,405.00
949,665.11
181,253.83

... .

...

Total

24,055, 708.92
2, 873,238. 25
1,685,835.61
682,147. 50
146,632. 50
2,146,539. 37
961, 975. 89
1,605,665.06
1,054,133. 66
804,591. 99
637, 439.67
313,952. 37
1,147,319.34
828,633.04
455,966.98
759,134.29
448, 331. 49
68, 553.18
47,377.06
30,720.85
62,196. 98
12, 111, 203.15

Total.

Date of
obligation.

Interest
rate.

Date of
maturity.

•
26,1919 June 30,1921
29,1919
do
10,1919 . . . - . d o
26,1920 . . . . . d o
29,1920
do
20,1920
do
17,1920
do
$3,931,505. 34
24,055,708.92 Sept. 4,1920 Jan. 1,1925
do
2,873,238. 25 July 30,1920
1,685,835.61 May 29,1920
do
Dec. 1,1919 June 30,1921
Dec. 19,1919
do..
Mar. 12,1920
do
Mar. 22,1920
do
Mar. 26,1920
do
Apr. 2,1920
do
Apr. 9,1920
do
Apr. 13,1920
do
do
June 30,1920
Apr. 23,1920 June 30,1921
Apr. 26,1920
do
^fay 10,1920
do
May 12,1920
do
May 13,1920
do
May 14,1920
do
June 2,1920 ..-•.-do
July 7,1920
do
July 14,1920
do
24,312,514.37 July 13,1920 Jan. 1,1925
Nov.
Nov.
Dec.
Jan.
.Tan.
May
June

Per cent
5
S

&
5
5
5
5

6
6
6
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
5
6

•

56,858,802.49

The interest accrued.and remaining unpaid on obligations of foreign Governments purchased by the Treasury under the Liberty bond
acts for the half years ending, respectively, October 15 and November
15, 1919; April 15 and May 15, 1920; October 15 and November 15,
1920; Apri.l 15 and May 15, 1921; and October 15 and November 15,
1921, is as follows:
Country.

Oct. 15 and Apr. 15 and Oct. 15 and Apr. 15 and Oct. 15 and
Nov. 15,1919. May 15,1920. Nov. 15,1920. May 15,1921. Nov.15, 1921.

Belgium
Czechoslovakia.
France.Great Britain..
Italy
Liberia
Roumania......
Russia
-Berbia

$8,330,8.32.65 $8,468,375.00 $8,515,912.81 $8,692,289.16 $8,692,289.16
1,164,422.14 1,354,134.64 1,478,333.35 ^ 1,531,405.17 1,531,405.17
6.5,287,862.51 71,836,44L19 73,255,486.49 73,769,073.45 73,769,073.45
101,691,907.05 101,870,458.96 101,870,458.96 101,870,458.96 101,870,458.96
39,050,152.83 40,442,845.74 40,765,715.11 40,820,167.12 41,200,851.27^
650. 00
650. 00
268. 85
650. O l
O
597,302.95
580,145. 49
625,000.00
580,145.49
382,818.09
4,713,366.30 4,685,999.25 4,693,243.75 4,693,243.75 4,693,243.75
659,230.96
654,378.48
654,378.48
669,258.13 •669,51L64

Total.
$42,699,698.78
7,059,700.47
357,917,937.09
509,173,742.89
202,279,732.07
2,218.85
2,765,412.02
23,479,096.80
3,306,757.69

Total
1221,290.619.70|229,953,035.27|231,836,334.38 232,611,811.581232,992,495.73| 1,148,684,296.66
Add interest accrued ana remaining unpaid (in excess of certain special funds held in the
Treasury to be applied on account of interest due May 15,1918, and Nov. 15,1918) on
Russian obligations for half year ending Nov. 15,1918, and half years ending Apr. 15,
1919, and May 15,1919
6,817,885. 2S
Total.

1,155,502,181. 91

The interest accrued and remaining unpaid, up to and including
the last interest-payment date in each case, on (1) foreign obligations received from the Secretary of W a r and the Secretary of th«




36

REPORT ON THE FINANCES.

Navy on account of sales of surplus war supplies (act of July 9,'
1918), (2) foreign obligations held by the Treasury received from
the American Eelief Administration (act of February 25, 1919), and
(3) foreign obligations held by the United States Grain Corpora-•
tion (act of March 30, 1920), was as follows:
(1)
F r o m sales of
surplus
war supplies.

Country.

Czechoslovakia.
Esthonia
•
France
•.
Latvia
Lithuania
.Poland
Roumania
Russia
Serbs, Croats, a n d Slovenes
Armenia
Finland
•.
Austria
Hungary

$1,929,487.63
1,221,-337.80
492,507.18
125,920. 74
415,949.20
4,085, o i l . 05
1,292,267.56
30,428.37
2,133,448.72

(2)
From
American
Relief Administration.

•$642,808. 92
168,330.57

(3)
F r o m sales of
floiir b y
U n i t e d States
Grain Corporation.
$172,394.30

Total.

1,443,342.54
101,150.14

"...

261,04.L78
82,213.60
5,167,174. 94

.
11,727,258.25

3,481,798. 43

23 377 743. 97

1,488,491.72

445,936.47
802,841. 22
598,339,79

Total

$2,744,690. 85
1,.3S9,668.37
492,507.18
386 962 52
498 162, 80
10 741 577 71
1^292; 267. 56
476,364.84
2,133,448.72
1,079,260.95
598,339.79
1,443,342.54
101 150.14

8,168^ 687. 29

276,419.73

The following is an itemized statement shoAving the amount of
interest heretofore paid by each of the foreign Governments on
obligations acquired by the United States Treasury under the Liberty
bond acts:
T o Nov. 15,1920.

Coantry.

Belgium
Cuba
Czechoslovakia.
France
Great B r i t a i n . . .
Greece
Italy
Liberia
R o u m a n i a '.
Russia
Serbia
Totals-

. - .

$10,907,281.55
1,136,865.47
301,178. 09
128,140,816. 48
233,357,185.50
409,153. 34
57,598,852.62
161.10
263,31.3.74
4,595,564.15
636,059.14

,
. .
'.'
:
.

.

.....

437,349,431.18

N o v . 16,1920, to
N o v . 15, 1921.

$308,057. 44
1,429,559.65
14,487, .500. 00
750,000. 00
•700.00
277,247. 35
17,251,064.44

Total.

$10,907,281. 55
1,442,922.91
304,178. 09
129,570,376.13
247,844,685. 50
1,159,153. 34
57,598,852.62
861.10
263,313.74
4,872,811.50
636,059.14
454,600,495.62

The greater part of the amount received from Eussia represents
the payment of certain funds realized by the Eussian representatives
in this country in connection with the liquidation of their fiscal
operations. The amounts paid by the Governments of Cuba and
Greece include interest paid up to June 30,1921, and October 15,1921,
respectivel}^ The amount paid by the Government of Great Britain
includes interest paid up to October 15,1921, on $54,900,000 and up to
November 15, 1921, on $36,600,000, being the unpaid principal
amounts of the obligations of that Government regarded as having
been given for Pittman silver advances.




37

SEC-RETAPvY 0.F T H E TREASURY.

The following is an itemized statement showing the amount of
interest heretofore paid by each of the foreign Governments and
so-called Governments on the obligations acquired under the act
of July 9,. 1918, on account of sales of surplu.s war. supplies:
To Nov. 15,1920. Nov. 16,1920, to
Nov. 15,1921.

Country.
Bftlginm.
France
Latvia
Poland
Russia

,

.

.

.

.

$1,417,922. 34

.

.

•-..

Total.

i26,266. i9
1,176,454.11
10,179. 87
2,730,822. 51

$1,379, 429.06
20,038,719.13
114,166.67
21,532,314.86

Total:
$2,797,351. 40
20,038,719.13
128,266.19
1,290,620.78
10,179. 87
24,263,137.37

Interest on the obligations of the Governments of Belgium and
France under this class is being paid currently as it becomes due.
No interest has been paid on the obligations of foreign Governments and so-called Governments, acquired under the acts of February 25, 1919, and March 30, 1920, respectively.
I n the annual report for the fiscal year ended June 30, 1920, on
page 54, a statement of the credits established from April 24, 1917,
up to November 15, 1920, and cash advanced against such credits,
was set out as follows:
Country.

Belgium .
Cuba
Czechoslovakia
France.
. . . .
Great Britain
G reece
Italy
Liberia
Roumania
Russia
Serbia
Total

Credits
established (net). Cash advanced.
$349,214,467. 89 $349,214,467.89
10,000,000.00
10,000,000.00
61,256,206. 74
67,329,04L10
3,047,974,777. 24 2,997,477,800; .00
4,277,000,000.00 4,277,000, boo. 00
48,2.36,629.05
15,000,000. 00
1,666,260,179. 72 1,631,338,986. 99
26,000.00
5,000,000. 00
25,000,000.00
25,000,000.00
187,729,750. 00
187,729,750.00
26,780,465. 56
26,780,465. 56
9,710,525,310. 56

9,580,823,677.18

Other charges .
against credits.

Balances under
estabUshed
credits.

$6,072,834.36
50,496,977.24
$33,236,629.05

33.236,629.05

34,921,192.73
4,974,000.00

96,465,004.33

The balance of the credit, as above stated, in favor of France, was
withdrawn on August 3, 1921.
The balance of the credit of $34,921,192.73 in favor of Italy was
extended for the purpose of enabling the Italian Government to
make such reimbursements in dollars to the British Government as
should be found due. Disposition of this credit was as follows:
I n the purchase of certain classes of commodities in this country
for war purposes, and in certain other transactions connected with
the war, the British Government acted for France and Italy, who
periodically reimbursed the British Governrnent out of the proceeds
of advances from the United States Treasury. I n settling these ac-




•38

REPORT ON T H E FINANCES.

counts, which had extended over many months, it was found that the
amount of reimbursements still to be made by the Italian Government to the British was $16,695,063.91, and that the French Government had overpaid the British Government in excess of this amount.
On March 30, 1921, an advance of $16,695,063.91 was made to Italy
for the purpose of making said reimbursement to the British Government. The indebtedness of Italy to'the United States Government
was increased by this amount. In accordance with, an agreement, the
British Government, at the time of the advance of said sum of $16,695,063.91 to the Italian Government, simultaneously paid a like sum
to the Secretary of the Treasury to be applied upon obligations of the
French Government held by the United States. As a result of this
application, the indebtedness of France to the United States Government was reduced in a like amount, by applying $15,265,504.26 as a
payment on account of the principal of the obligations of the French
Government held by the United States, and $1,429,559.65 as a payment of the accrued interest to date of payment on said sum of $15,265,504.26. I t will be noted that in carrying out this transaction no
funds passed out of the United-States Treasury, but that its effect was
to adjust accounts as between the United States, the Italian, the
French, and the British Governments.
The remaining $18,226,128.82 of the balance of credit in favor
of the Italian Government, above mentioned, was withdrawn on
March 30, 1921.
The balance of the credit in favor of the Government of the
Czecho-Slovak Eepublic is part of a credit which was granted for
the purpose of assisting that Government to repatriate its troops from
Siberia. The movement of these troops was carried on by the W a r
Department and the United States Shipping Board and has now been
completed, but the exact amounts owing these Government agencies
by the Czecho-Slovak Government have not as yet been determined.
When the advances are made to the Czecho-Slovak Government for
the purpose for which the credit was established the funds will be
paid over by the Czecho-Slovak Government to the War Department
and the United States Shipping Board in payment for the services
rendered in connection with the movement of these troops. I t will
be noted that if any money is advanced by the Treasury to the Czechoslovak Eepublic it will be returned to other agencies of this Government. I t is not expected that the liabilities incurred by the movement of these troops \ will require advances from the United States
to the extent of the entire balance of the credit.
The credits in favor of Greece were established pursuant to a
special agreement made early in 1918 under which the United States,
Great Britain, and France undertook to lend to the Greek Government for specified purposes, in equal shares in their respective cur-




39

SECRETARY OF T H E TREASURY.

rencies, up to the equivalent of 250,000,000 francs each. I t is not
contemplated that any advances will be made on this account by
the United States.
The credit in favor of Liberia was established only for specific purposes. The balance of this credit was withdrawn'on November 4,
1921.
The following statement shows the credits established under the
Liberty bond acts (after deducting credits withdrawn) and the cash
advanced thereunder, as at the close of business on November 15,
1921:

Country.

Belgium
Cuba
'Czechoslovakia
France
Great Britain
Greece
Italy.
Liberia
Roumania
Russia
Serbia
Total

Credits established (net).

Other
Cash advanced. against charges
credits.

$349,214,467.89
10,000,000.00
67,329,041.10
2,997,477,800.00
4,277,000,000.00
48,236,629.05
1,648,034,050.90
26,000.00
25,000,000.00
187,729,750.00
26,780,465.56

$349,214,467.89
10,000,000.00
61,256,206.74
2,997,477,800.00
4,277,000,000.00
15,000,000.00
1,648,034,050.90
26,000.00
25,000,000.00
187,729,750.00
26,780,465.56

9,636,828,204.50

9,597,518,741.09 .33,236,629.05

Balance
under established
credits.

$8,072,834.36
$33,236,629.05

6,072,834.35

Of the foregoing advances there have been repaid up to November
15, 1921, b y British Government
French Government
Roumanian Government
Belgian Government
Cuban Government
Serbian Government

:

$110,\^81, 641. 56
46,714,861.81
1, 794,180. 48
1, 522, 901. 66
1, 425, 000. 00
605, 326.34

___:

..

Total repayments of principal

162, 748, 911. 85

Of these repayments of principal the following were made during
the period beginning November 16, 1920, and ending November 15,
1921:
Belgium
€uba
—_France
Great Britain
Total

^
—^
^
..-1

$1, 512, 901. 66
925,000. 00
15,265, 504.26
30, 500,000. 00
48, 203, 405. 92

The repayments made by the British Government during the past
year are on account of the obligations of that Government which are
regarded as having been given for purchases of silver under the
Pittman Act, all in accordance with the special agreement which
was made regarding such obligations.




40

REPORT ON T H E FINANCES.

On June 28, 1921, a. general settlement between the State, War,
and Navy Departments and the French Government of mutual
claims growing out of the war was completed.
Fmxding legislation.
After careful consideration of the authority vested in the Secretary of the Treasury to deal with the foreign obligations held by the
United States, it seemed clear that additional legislation was needed
in order that this important problem might be dealt with on a satisfactory and business-like basis. On June 21, 1921, the following
letter was accordingly written b}^ the Secretary to the President of
the United States:
J U N E 21,

1921.

M Y DEAR Mil. PRESIDENT : I desire to. call to your attention the situation
respecting the m a t t e r of the refunding of the debt of foreign Governments to
t h e United States arising out of the European W a r .
This debt as now held, summarized, is as follows:
Obligations for advances made under the various Liberty
bond acts
^
$9, 435, 225, 329. 24
Obligations received from the American relief administra
tion.
84, 093, 963. 55
Obligations received from the Secretary of W a r and from
the Secretary of t h e Navy on account of the sale of surplus
w a r materials
565,048,413.80
Obligations held by the United States Grain Corporation
56, 899, 879. 09
Total
10,141, 267, 585. 68
Annexed hereto a r e statements showing in detail the obligations above
referred to, giving, as to each class, the amount owing by each country and,
in the case of loans from the proceeds of Liberty loan bonds, the amount
thereof loaned from the proceeds of the first Liberty loan bonds and the amount
from subsequent Liberty loan bonds.
F r o m this statement it will be seen t h a t the obligations in respect of loans
from' the proceeds of Liberty bonds a r e all demand or overdue obligations,
while the other classes ref<2fred to m a t u r e a t various dates, beginning J u n e 30,
1921, and extending to August 1, 1929. The obligations mentioned as being
held by the United States Grain Corporation were received by t h a t corporation
from foreign Governments on'account of the sale of flour under the act of March
30, 1920. As they may at any time be turned into the United States Treasury,
and some of them m a t u r e on J u n e 30 next, they a r e included here so t h a t they
may be dealt with along with other like obligations.
F r o m the statement, it will also be seen t h a t the obligations of the various
classes named are largely owing by the same d e b t o r s ; t h a t is to say, this Government in the refunding of the various classes of these obligations will, to a
considerable extent have to deal with the same Governments.
I am advised that, except as to the advances made out of the proceeds of
Liberty loan bonds, this department is without a u t h o r i t y to consent to any extension of the time for payment of the principal or of t h e interest of tbese obligations or to proceed with the refunding thereof. As to the advances made oiit of




SECRETARY OF THE TREASURY.

_

41

the proceeds of Liberty loan bonds, the existing authority contains such diverse
provisions as to interest rates, the maturity and other terms of the refunding
bonds that may be accepted by the department as makes it difficult to formulate,
a plan whereby the interests of this Government may be as well protected and
the bonds to be received be in as desirable form as would be the case if the entire
debt of each country could be dealt with as a whole and free from such restrictions.
In some cases the debtor nations owe large amounts to other countries as well
as to the United States, and it may be advisable, and in some cases indeed necessary, to consider comprehensively the entire debt of such countries, its financial
condition and resources, so as, to work out a refunding plan reasonably within
the ability of such c'ountry to carry out.
In the case of some of the debtor countries it is impossible for them to make
payment of their obligations as they now mature. It is impossible for some of
them to make payment of the maturing interest. To insist on payment might
be disastrous to the peoples of such countries; and besides there may have to
be given consideration to the bearing of the adverse foreign exchange rates
existing at the time against these debtor countries and which may make it
desirable to defer payment of interest.
Under the circumstances I have briefly referred to, it is, I think, clear that by
reason of the lack of any authority as to a part of these foreign obligations and
the restrictions upon the existing authority as to the others, it is impossible in
any refunding, under the varying conditions that exist, to deal fairly with the
debtor countries and at the same time protect the interests of this country. To
do this it is essential that the department have full authority as to all such foreign indebtedness to determine the form and terms of the settlements and of the
refunding obligations, the rate or rates of interest, the maturity dates, and the.
right to extend the time for the payment of interest on the indebtedness to be
refunded. It is also of importance that the department should have adequate
authority to adjust and settle claims against foreign Governments, which are
not in the form of bonds or obligations, as for example the claim for costs of
our military forces of occupation.
I have had prepared a draft of an act of Congress to accomplish the purpose
stated and should you transmit this communication to Congress shall be glad to
appear before the appropriate committees relative to the situation and the necessity for the authority requested.
Faithfully yours,
A. W. MELLON, Secretary.
The

PRESIDENT,

The White House.
AN ACT To enable t h e refunding of obligations of foreign Governments OAving to the
United States of America, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States
of America in Congress assembled, That the Secretary of the Treasury, with
the approval of the President, is hereby authorized from time to time to refund
or convert, and to extend the time of payment of the principal or the interest,
or both, of any obligation of any foreign Government now owing to the United
States of America, or any obligation of any foreign Government hereafter received
by the United States of America (including obligations held by the.United
States Grain Corporation), arising out of the European War, into bonds orother obligations of such, or of any other, foreign Government, and from time
to time to receive bonds and obligations of any foreign Government in substilu-




42

REPORT. ON THE FINANCES.

tion for those now or hereafter held by the United States of America, in such
form and of such terms, conditions, date or dates of maturity, and rate or rates
of interest, and with such security, if any, as shall be deemed for the best
. interests of the United States of America, and to adjust and settle any and all
claims, not now represented by bonds or obligations, which the United States
of America now has or hereafter may have against any 'foreign Government
and to accept securities therefor.
On June 22, 1921, the President addressed the following letter to
the chairman of the Finance Committee of the Senate and the chairman of the Ways and Means Committee of the House of Representatives :
JUNE 22,

1921.

I am inclosing to you herewith a copy of a letter which I have received from
the Secretary of the Treasury relating to the obligations of foreign Governments
to the United States which arose out of the World War and our participation
therein. The statement is a comprehensive one, showing the detailed obligations
which are owing to the United States, and the Secretary points out the urgent
necessity of broad powers granted by the Congress for the arrangeinent for the
refunding or conversion or extension of the time of payment of principal and
interest on these obligations, and the adjustment of other claims of the United
States against foreign Governments. All the circumstances sugge,st the grant
of broad powers to the Secretary of the Treasury to handle this problem in
such a manner as best to protect the interests of our Government.
I hope your committee and the Congress will find it consistent promptly to
sanction such an act as that which is suggested by the inclosed draft. If the
Congress will promptly sanction such a grant of authority the Secretary of
the Treasury may proceed to the prompt exercise of the powers granted to him,
and we reasonably may expect .a satisfactory handling of the obligations due
and the claims of our Governinent which are awaiting settlement.
Sincerely, yours,
^

WARREN G. HARDING.

Legislation to authorize the funding of the foreign obligations was
accordingly introduced in Congress, and a funding bill has now
passed the House of Eepresentatives and is pending in the Senate.
The international financial situation.
The values of foreign currencies as measured in dollars have shown
great fluctuations during the year, and this instability, taken in connection with the recession in general business, has been unfavorable
to the development of the foreign and domestic trade of this country.
I t is not necessary to discuss the many factors which have contributed
to this situation. The interdependence of the industry of all nations
has been brought out very clearly by the developments since the war.
I t is fully understood to-day that the business of the United States
depends in part upon the business activity of other nations.
The foreign obligations held by the United States, nearly all
payable on demand, add to the uncertainty in international trade,
particularly between the United States and its debtor nations, and




43

SECRETARY OF THE TREASURY.

increase the difficulty of a resumption of credit operations by these"
nations in the investment markets of the world. Many of them need
capital for reconstruction, the purchase of raw material, and the rehabilitation of their railways and factories. Until their financial position is made clear, their ability to place loans will be affected, their
industrial recovery will be retarded, and our own prosperity will suffer. The funding of these demand obligations and placing them in a
businesslike form is one of the outstanding needs of the present economic situation. I t is essential that some definite arrangement should'
be made as to the terms of payment both of the principal and interest. This is a problem which the country must face and must deal
with in a broad, far-sighted wa3^
DOMESTIC CREDIT S I T U A T I O N .

The outstanding feature of the credit situation during the past 12
months has been the gradual liquidation of banli loans and the consequent easing of money rates. Loans and investments of both Federal reserve banks and the reporting member banks reached the
high point on October 15, 1920, at the peak of the usual autumn
demands, and have shown an almost continuous decline since that
date, as prices declined and business activity slackened. The liquidation of loans, together with heavy imports of gold, has resulted in
a rapid advance in the reserve ratio of the Federal reserve banks and
a strengthening of the credit situation generally. The following
table shows the changes during the period under review in the loans
and investments of reporting member banks and in the condition
of the Federal reserve banks:
[Amounts in millions of dollars.]

Oct. 15,
1920.

Jan. 14,
1921.

Apr. 15,
1921.

July 13,
1921.

Nov. 2,
1921.

Change from Oct.
15, 1920, to Nov.
2, 1921.
Amount. Per cent.

Loans and investments of reporting member banks, including rediscounts with the.
Federal reserve banks
Total earning assets of Federal
reserve banks
Federal reserve notes in actual
circulation
'..
Totalreserves of Federal reserve
banks
Combined reserve ratio of Federal reservc'banks
....

17,284

16,440

' 15,756

15,051

14,850

-2,434

-14.1

3,422

2,969

2,504

2,000

1,549

-1,873

—54.7

3,353

3,159

2,869

2,604

2,408

-

945

—28.2

2,155

2,289

2,485

2,648

2,946.

+

791

+ 36 7

42.7

48.1

53.7

61.6

71.0

+ 28.3

-f 66 3

The increase in the total reserves of the Federal reserve banks is
due almost entirely to the importations of gold. Between October 20,
1920, and November 1, 1921, the imports of gold in excess of exports




44

REPORT ON THE FINA]s^CES.

Avere $702,429,000, and an. even larger gain during that period I S
shown for the golcl reserves of the Federal reserve banks.
The liquidation of loans has not been uniform in the various districts, but has been especially heavy in the industrial districts of the
East as contrasted with the agricultural districts. The following
table shows the changes in the total earning assets of each Federal
reserve bank between October 15, 1920, and November 2, 1921:
T o t a l earning assets ^
(in t h o u s a n d s of dollars),

A d j u s t e d reserve r a t i o . '
Percent
decrease.

Reserve bank.
O c t . 15,
1920.

N o v . 2,
1921.

O c t . 15,
1920.

N o v . 2,
1921.

Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. L o u i s . . / . . . .
MinneapoUs
K a n s a s City
Dallas
San F r a n c i s c o . .

S179,229
1,138,773
201,166
152,879
151,466
189,312
585,254
175,425
117,195
173,962
121,558
235,757

.S72, 111
311,001
119,7&3
141,130
112,909
134,052
2.30,826
74,032
76,404
91,496
67,676
118,039

59.8
72.7
40.5
7.7
25.5
29.2
60.0
57.8
34.8
47.4
44.3
50.0

67.0
36.9
59.6
78.5
33.9
17.8
36.7
21.1
21.4
19.3
13.8
' 45.1

84.7
83.5
•70.8
70.1
40.2
32.8
-71.6
66.5
40.1
48.6
31.6
72.2

• All b a n k s

3,421,976

1,549,459

54.7

42.7

71.0

1 Before interbank borrowing.

The low reserye percentage of four of the Federal reserve banks,
Richmond, Atlanta, Minneapolis, and Dallas, reflects the continued
heavy credit demands in those districts. These Federal reserve banks
have found it necessary to secure assistance from the Federal reserve
banks in industrial districts by rediscounting, in order to meet the
unusual demands for credit and at the same time prevent their reserves from falling below the legal minimum. The amount of such
rediscounts on November 2, 1921, was $27,669,000.
The improvement in the credit situation earlier in the year and
the attitude of the Federal Reserve Board toward agricultural
credits were discussed in a public statenient issued by the board on
June 6, 1921, which read in ]Dart as follows:
It is the opinion of the Federal Reserve Board that the country is approaching a new crop season with underlying conditions far sounder than they were
a year ago. While there are still large amounts of staple products being carried
over, financed partly on bank credit, the reserves of the 12 Federal reserve
banks combined are nearly 40 per cent higher than they were at this time last
year, standing at about 57.5 per cent as against 42 per cent. There is no ground
for apprehension regarding the abiUty of the banks to meet the requirements
of both agriculture and industry.
The Federal reserve system now holds the largest amount of gold in its entire
history, more than $2,400,000,000, and the inflow ti^om other countries still
continues. While the loans and invested assets of the Federal reserve banks
have been reduced^ since the peak on November 5 last by more than $i,000,000,000, most of this liquidation has come about in an orderly and natural




SECRETARY OF TH;E TREASURY.

45

way. Liquidation has been most pronounced in financial and industrial centers .
rather than in agricultural sections, as is evidenced by the fact that while
the rediscounts held by the Federal reserve banks are materially less than
at this time a year ago, these banks are now carrying more than twice as
much agricultural and live stock paper (maturities from 90 days to 6 months)
as they had on hand a year ago.
It should be understood that until there is a broadening of the market for
agricultural products many farmers will ha-ve to be granted extensions on loans
already made them and will, in many cases, require additional credits pending
the making and marketing of the new crops. The Federal Reserve Board is
gratified to know that the Federal reserve banks are prepared to extend liberal
credits to member banks, and through them to nonmember banks, for these and.
other productive requirements of their customers, and the board urges all banks
to aid in easing along the situation in the agricuUural districts until normal
and regular processes of production and distribution can be further developed.
The board feels that the financial emergency which menaced the country during
the year 1920 has definitely passed.
There is, however, in some sections a situation which affects seriously producers of some highly essential products. In the stock-raising industry, particularly, additional credit facilities are urgently needed. Live stock paper running not longer than six months is eligible for rediscount at Federal reserve
banks, and loans for the purpose of feeding and fattening cattle are, therefore,
more easily obtained than the longer time loans for breeding cattle and young
calves. The banks of the country are urged to bear in mind the needs of the
live stock industry and to extend as liberal accommodations to those engaged in
the industry as circumstances will permit.

With reference to the credit situation in the cotton districts, a
special meeting of the board and the governors of the Federal reserve banks of those districts was held, and the following statement
issued by the board on July 20, 1921:
In view of the vital importance of the problems incident to the harvesting
and marketing of the coming cotton crop, the Federal Reserve Board to-day
held a conference with the governors of the Federal reserve banks of Richmond, Atlanta; St. Louis, Kansas City, and Dallas, the banks located in or
hrought in closest touch with the member banks in the cotton States, for the
purpose of reviewing the credit situation in these States and determining
what further credit will be needed to facilitate the harvesting and orderly
marketing of this crop.
At the present time the five reserve banks in question are lending to their
members $457,000,000, or more than 26 per cent of the loans of the entire
system, the Richmond bank borrowing from other reserve banks $20,000,000
and the Dallas bank borrowing $16,000,000 for that purpose. The total loans
of these five reserve banks to their member banks exceed their reserve deposits
by $192,000,000, whereas the reserve deposits of the other seven reserve banks
exceed their loans to their members by, $118,000,000. .
The amount now loaned by these reserve banks to their members is four
and one-half times the amount borrowed at any one time by all the national
banks of the country prior to 1914, or before the establishment of the Federal
reserve system.




46

REPORT ON THE FINANCES.

The Federal Reserve Board and the governors of the Federal reserve banksannounce that the Federal reserve banks, in addition to credits already extended, are.able and stand ready to extend further credit for the purpose of
harvesting and marketing the coming crop, in whatever amount may legitimately be required, either directly to their member banks or, under a ruling
now issued by the Federal Reserve Board; indirectly to nonmember banks^
acting through the agency and with the indorsement of a member bank. These
loans will be made by the Federal reserve banks upon notes, drafts, and billsof exchange issued or dra\yn in accordance with the terms of the Federal
reserve act and the regulations of the Federal Reserve Board, for the harvesting or orderly marketing of the coming cotton crop.
In order, however, that these rediscount facilities of the Federal reserve .
banks may be made fully effective it will be necessary that member banks in
the cotton States place their loaning facilities freely at the disposal of cotton'
producers and dealers in their respective localities with the knowledge and assurance that the Federal Reserve Board and the Federal reserve banks recog-"
nize the urgency of rendering all proper assistance to these important interests
during such abnormal times.
Mr. Meyer, managing director of the War Finance Corporation, who attended
the conference, reviewed the activities of the War Finance Corporation in making loans for financing cotton for immediate and future export. Gov.-Strong,
of the Federal Reserve Bank of New York, and representatives of certain New
York member banks were also invited to the conference to discuss the necessity
or advisability of having various commercial banks through the country establish a fund for the purpose of making loans upon cotton. In view of the conclusions reached by the conference as to the ability of the Federal reserve
banks effectively to take care of all of the legitimate requirements of the cotton interests, it was felt that the establishment of such a fund at this time is
neither necessary nor advisable. Gov. Strong stated, however, that he had received assurances from a number of important banking institutions in New
York City that if the facilities now offered by the Federal reserve banks and
the War Finance Corporation should prove to be inadequate, they will cooperate in the establishment of a cotton loan fund in whatever amount the situation
might demand.
Many cattle growers were finding it difficult to meet their obligations on account of the heavy decline in the price of live stock, and it
was seen early in the summer that the future cattle, supply was in
danger of being depleted through the marketing of breeding cattle
and young calves. On the initiative of the Secretary of the Treasury
conferences were therefore held between representa tives of the Federal
Reserve Board and the Federal reserve banks, commercial bankers
from the financial centers and the agricultural and live-stock districts,
and representatives of the agricultural Senators to discuss methods of
relief in the way of further extensions of credit. As a result the Stock
Growers' Finance Corporation was organized, with headquarters in
Chicago, for the purpose of supplying $50,000,000 of live-stock loans
through bankihg channels. I t is understood that this corporation
has been engaged in making actual loans since the week beginning
J u l y 11. The following public statement was made by the Stock




SECRETARY OF THETREASURY.

47

Growers' Finance Corporation on July 12,1921, with reference to the
type of loahs which would be made:
JULY 12,

1921.

GENTLEMEN : AVe are pleased to announce that this organization is ready to
receive applications for rediscount from banks and cattle loan companies who
file with the corporation a satisfactory financial statement.
Loans offered must be secured by mortgage on live stock, showing a substantial equity in value over the amount advanced, and all loans must be
, accompanied by the. following: Report of an inspector showing number and
quality and his estimate of the value of the security; original chattel mortgage
or certified copy showing recorder's certificate; ofliice copy of the chattel mortgage (need not be certified) ; financial statement of the maker of the paper
and abstract of the records. All loans must be eligible for rediscount with the
Federal reserve banks, and the papers should be prepared accordingly.
On all notes, the last as well as all previous indorsements must waive demand notice and protest.
Loans will be accepted with date of maturity running six months or less,
and if found satisfactory will be extended or renewed for periods of six months
or less, not exceeding a total length of time of 30 months from date of loan,
at which time payment will be required.
Please submit applications for loans a few days in advance of the need for
the money, giving sufficient time for our organization to act on applications
intelligently. Not having the organization to properly inspect and investigate
loans, and recognizing that the situation requires that the funds be made
available promptly, the policy of making no direct loans has been adopted.
The rate of discount to be charged for the present is fixed by the executive
committee at 7 per cent.
Many banks who have never handled live stock loans are participating in
this movement to assist the live stock interests and not just to relieve the
banks and loan companies; therefore, it is expected that the banks and loan
companies will use the privileges of the organization freely, and having been
provided a method to carry this class pf loans, they will continue their efforts
to support the industry by making new loans. We feel if this policy is faithfully carried out, satisfactory results will immediately follow, and to that end
we ask the cooperation of the friends of the live stock industry.
All correspondence should be addressed to the Stock Growers'/Finance. Corporation, room 1054, Continental & Commercial Bank Building, Chicago, 111.
Yours truly,
STOCK GROWEKS* FINANCE CORPORATION.

M. L. MCCLURE, President.

In view of the general agricultural situation Congress passed an
act, approved August 24, 1921, broadening the powers of the War
Finance Corporation so as to enable it to extend further relief to
agricultural and live-stock producers. A discussion of the operations
under this act will be found elsewhere in this report, in the article
entitled " The War Finance Corporation and its activities," beginning at page 49.
As a result of easing credit conditions there has been a gradual
but substantial decline in money rates since the beginning of this
year. The ruling rate in the New York market for four to six




48

REPORT ON TFIE FINANCES.

months commercial paper at the present time (Nov. 1, 1921) is
5^ per cent as compared with 8 per cent at the beginning of the
year. During the same period the rate for 60 to 90 day bankers'
acceptances has declined from 6^ per cent to 4f per cent, and call
money is now ruling around 4^ to 5^ per cent as against 7 to 8 per
cent a year ago. The following table gives the range of rates each
month since October, 1920, for call loans, commercial paper, and
bankers' acceptances on the New York market:
4 to 6 months' com- 60 to 90 days' bankmercial paper.
ers'acceptances.

Call loans.
Date.
High.
1920.

October
ISfovember
December
January
February
March
April
May
June
July
August
September
October

Low

High.

Low

• High.

Low.

10
10
7

6i
6J

1921.
5f

-

f

:

5

,

Period

3^

5|

6i

^

Lower commercial money rates have been reflected in a lowering
of the discount rates of the Federal reserve banks. The changes
which have occurred in the rates on commercial paper are as follows:
Bank and date of changes.

Boston:
Apr. 15
July 21
Sept. 23
Nov. 4
New York:
May 5
June 16
July 21
• Sept.22..
Nov.3
Philadelphia:
July 2 1 . . . . . . . .
Nov.3
Cleveland:
Aug. 8
Nov. 7
Richmond: Nov. 3
Atlanta:
May 6
Nov.2




Rate
Nov. 7, High.
1921.

1"

7

4^

}

7

«'•

6

} ^
5^

}

5,

6
6
7

Bank and date of changes.

Chicago:
May 7
July 3 0 . . . .
.Nov.3
St. Louis: Nov. 3 . . . .
Minneapolis:
May 10
Oct. 5
Nov. 7
Kansas City: Nov. 2.
Dallas:
May 16
June 25
Nov. 4
San Francisco:
July 25
Nov.2

Rate
Nov. 7, High.
1921.

5^

SECRETARY OF T H E TREASURY.

49

TELE WAR FINANCE CORPORATION AND ITS ACTIVITIES.

The War Finance Corporation, which in March, 1919, was authorized to make advances to American exporters and American banking
institutions to assist in financing exports of domestic products, resumed operations in January, 1921. Its activities had been suspended
in May, 1920, at the request of the then Secretary of the Treasury,
but the Congress, on January 4, 1921, adopted a joint resolution,
over the President's veto, directing the Secretary of the Treasury to
revive the activities of the corporation with the view of assisting in
the financing of the exportation of agricultural and other products
to foreign countries. The text of the resolution was as follows:
T h a t ,the Secretary of the T r e a s u r y and the members of the W a r Finance
Corporation are hereby . directed to revive the activities of the W a r Finance
Corporation, and t h a t said corporation be a t once rehabilitated with the view
of assisting in the financing of tbe exportation of agricultural and other products to foreign countries.
,

I n view of the wording of the resolution and in order to relieve the
situation which confronted the agricultural industry, the directors
of the corporation concentrated their energies largely on agricultural products. As the authority of the corporation was then
confined to export financing, and as the^great American agricultural
product exported is raw cotton, they turned their attention first
to this important factor in the American economic structure. Meetings with representative bankers and exporters were held in Washington, Atlanta, New Orleans, and New York to consider the bestmethods of finaiicing, exports of cotton on credit. But it soon became
clear that a change had coine over the European buyer. .He was
no longer anxious to buy on credit, as he had been after the armistice
and up to the latter part of 1920, He had suffered heavy losses in
connection with purchases on credit as a result of the depreciation
and the fluctuations in exchange, and he no longer desired to buy
on that basis.
Kecognizing the changed situation, the corporation offered, as a
first step, to make advances to exporters for the purpose of carrying stocks of American cotton in foreign warehouses, and some advances were made for this purpose. While this action proved to be
helpful, it was soon found that it did not meet the situation in an
adequate way. I t was then decided to make advances on cotton
stored in America which was under contract for sale to foreigners,
but applications for such advances were not filed on a sufficiently
large scale to become an important factor.
Finally, at the beginning of July, the corporation approved an
application of a cooperative association in Mississippi to finance the
70073—FI 1921




4

50

REPORT ON T H E FINANCES.

carrying of 100,000 bales of long-staple cotton for export. By the
terms of the advance the association agreed that, out of the 100,000
bales pledged as security for the loan, it would export within one
year a sufficient quantity to repay the full amount of the advance
out of the proceeds of export sales—the cotton to be held in American warehouses until the time was opportune for export. The announcement of this transaction created considerable interest, and
was followed by applications from other cooperative organizations
in Texas, Oklahoma, and Arizona, as well as from banking institutions in the South, for assistance in financing large quantities of cotton for export in a similar manner. In all these transactions the
greatest care has been taken to insure the use of the funds advanced
by the corporation solely for the purpose of orderly marketings
without encouraging holding for speculative purposes.
The assistance rendered by the corporation undoubtedly has been
an important factor in the recent improvement in the market for
cotton. In all, the corporation has agreed to finance approximately
1,000,000 bales, largely of the new crop, involving approximately
$60,000,000. While, this sum is relatively small in comparison with
the total value of the crop, nevertheless the assurance of financial
assistance gave confidence to the manufacturer and the dealer, and
also to the banks which make loans upon cotton as collateral security. As soon as there was confidence that the industry would be
adequately financed, the buyers came into the market, both at home
and abroad, with marked effect on the price of cotton and of cotton
goods. It is, of course, not within the province of the War Finance
Corporation to conduct its business with the view of affecting prices.
But it is its duty to offer adequate financing on a sound basis; and,,
if prices are depressed because of inadequate financing rather than
because of inadequate demand, it would be natural for prices to be
affected favorably by providing financing where it has been lacking.
It must always be remembered, however, that financing will not stimulate prices where the demand does not exist.
Perhaps it should be pointed out here that the service rendered by
the War Finance Corporation can not be measured by any mere
statement of its advances. Entirely aside from the dirjcct aid given
by the corporation through the exercise of its powers and the application of its funds, it is rendering a service and exerting an influence
which is exceedingly helpful from a psychological point of view.
Its very existence, with the large funds at its command, has tended
to inspire confidence and to facilitate the financing of transactions
through ordinary banking channels. In many cases advances authorized by the corporation have not been consummated because the
applicants, strengthened by the assurance of aid from the corporation, have been able to handle their business in other ways. In fact^




SECRETARY OF THE TREASURY.

5l

its experience has been that wherever it loaned, or agreed to loan,
a dollar, it produced confidence to such an extent that others were
willing to advance many dollars.
The activities oi the War Finance Corporation under its export
powers have not been confined to cotton. I t agreed to make large
advances to cooperative associations in the Northwest on wheat
intended for export, on (Jried fruits and on canned fruits and
vegetables to cooperative associations in California, on tobacco to
exporters and banking institutions, and on condensed milk and meat
products to banking institutions. I t has also approved a limited
number of applications inv[)lving the exportation of railroad equipment, copper, and sugar-mill machinery.
The loan, to the cooperative association in Mississippi on cotton
marked the adoption of a | new policy which proved to be exceedingly helpful. But it became increasingly clear that further action
was needed to meet the new situation that had arisen in our foreign
and domestic trade. The necessity of selling our staple agricultural
products more gradually than we did in former years, and the corresponding necessity of carrying our commodities here in America in
larger quantities for a longer period of marketing, became more
and more apparent. This is strikingly illustrated by our cotton
exports. In the cotton year 1910-11, 81 per cent of the exports for
the entire year was concentrated in the six months from September
to February, inclusive. In 1919-20, only 51 per cent of the exports
for the entire cotton year was forwarded during the same months.
This means that we must carry forward into the second six months
of the crop year 1,500,000! to 2,000,000 bales which formerly were
exported during the first six months. And the same conditions
were found to exist with reference to our other products, both agricultural and manufactured. I n other words, it was thcpractice of
European countries before the war to purchase and finance the
greater part of their requiifements for the year within a few months
immediately following the harvest. Now this situation is changed,
and foreign merchants and manufacturers do not wish to buy on a
large scale on a credit basis because of the risk involved in exchange
fluctuations.
These fluctuations, actual and potential, have made
them reluctant to contract ajhead for goods which are to be paid for in
dollars, but which they will have to sell in manufactured, or even in
raw form, in terms of foreign currency. This statement is confirmed
not only by information received from American bankers and business men returning from Europe but also by reports from representatives of the Department of Agriculture who were sent abroad
to investigate the markets in Europe for American agricultural
products.




52

REPORT ON T H E FINANCES.

Inquiries have also developed the fact that our own merchants and
manufacturers were operating on.'the basis of the lowest possible
stocks and were buying only to supply current demands. This
naturally resulted in forcing large quantities of raw materials, which
normally are carried by mills, wholesalers, jobbers, and retailers, back
upon the original producers and the couritry banks which do their
financihg. The producers were unable to market their products as
rapidly as formerly, and there was thus brought, about a condition of
acute distress in the agricultural sections of the country. I t became
essential, therefore, that additional provision be made for the
financing of agricultural commodities until they could be marketed in
an orderly way.
After long and careful study of the whole problem, the W a r
Finance Corporation proposed certain amendments to the original
act which were designed to accomplish this purpose. These amendments were embodied in what is known as the agricultural credits act,
approved August 24, 1921. The act broadened the powers of the corporation, and gave it authority to make advances not only to exporters
and banking institutions but also to dealers in, and handlers of,
agricultural products, including cooperative associations, for the
purpose of financing the carrying of such products until thiey can be
exported or sold for export in an orderly manner. Such advances
may be made until July 1, 1922, for periods not exceeding one year,
but the time for payment may, in the discretion of the corporation,
be extended for periods not exceeding three years from the dates upon
which the advances were originally made. The corporation also is
authorized to make advances to persons, firms, or corporations outside
of the United States who purchase our agricultural products, on condition that all notes or other instruments evidencing such advances
" shall be in terms payable in the United States, in, currency of
the United States, and shall be secured by adequate guaranties or indorsements in the United States, or by warehouse receipts, acceptable
collateral, or other instruments in writing conveying or securing
marketable title to agricultural products in the United States."
The act also empowers the corporation, whenever in the opinion
of the board of directors the public interest may require it, to make
advances to any bank, banker, or trust company in the United States,
or to any cooperative association of producers, which may have made
advances for agricultural purposes, including the breeding, raising,
and fattening of live stock, or may have discounted or rediscounted
notes, drafts, bills of exchange, or other negotiable instruments
issued for such purposes. Such advances may be made for periods
not exceeding one year, with discretion in the War Finance Co?'poration to renew them for a total period of not to exceed three




SECKETARY OF. THE TREASURY.

• 53

^ years from the dates of the original advances. I n exceptional cases
the corporation is authorized to purchase from banks, bankers, or
trust companies paper secured by agricultural products, including
live stock; and it is further authorized to purchase, sell, or otherwise
deal in acceptances, adequately secured, issued by Edge law banking
corporations, to assist them in promoting the exportation of agricultural and manufactured products.
The aggregate amount of advances made and paper purchased
and outstanding at any one time is limited to $1,000,000,000, and
the corporation is authorized to issue its bonds to the extent of
three times its capital stock, or $1,500,000,000.' The phrase "bank,
banker, or trust company," as used in the act, inciudes " any reputable and responsible financing, institution incorporated under the
laAvs of any State or of the United States with resources adequate
to the undertaking contemplated."
After the passage of the act, steps were taken b}^ the corporation
/ t o establish the necessary machinery for its prompt and effective
administration. Circulars giving full information regarding the
procedure to be followed in making advances, and the requirements
of the corporation in connection therewith, were.published and given
wide distribution.- They provide that applications arising under
sections 21 and 22 of the act, which relate to export transactions,
as Avell as applications from cooperative associations, shall be submitted direct to the corporation., at Washington for consideration.
To facilitate the handling of advances to banks, bankers, and trust
companies for agricultural purposes, under section 24 of the act,
and to afford the necessary assistance as quickly as possible, the corporation decided to appoint committees in the principal agricultural
and live-stock sections of the country, whose chief duties would be
to consider applications in the first instance, pass upon the collateral
offered, and submit their recommendations to the corporation at
Washington for reviev/ and final action. The committees, Avhich are
composed of bankers and business men Avho serve without compensation, were organized as promptly as the members could be selected
and appointed, and in a short time they were ready to function.
Each commiittee was authorized to employ a secretary who would
devote his entire time to the work, and to establish headquarters,
designated as the agricultural loan agency of the War Finance
Corporation, in the city which ordinarily serves as the financial
center of the surrounding territory. Forms of application and other
necessary documents were prepared by the corporation and were
furnished not only to the committees but also t o the Federal reserve
banks and their branches.




54

REPORT ON T H E FINANCES.

In order to obtain first-hand information regarding agricultural
conditions in the West and to expedite the administration of the new
act, the managing director of the corporation, during September,
visited Chicago, Minneapolis, Helena, Spokane, Portland, San Francisco, Los Angeles, Salt Lake City, Cheyenne, Denver, Hutchinson,
Kans., Kansas City, Omaha, and Des Moines. A t each of these
places he conferred with the committees and met representative
groups of business men, bankers, stockmen, farmers, and others. He
explained fully to them the new powers granted to the corporation
by the Congress and its plans for their administration.
At practically every point the managing director's attention was
directed particularly to the seriousness of the live-stock situation,
and it was urged that immediate action, be taken to stop the
sliipment of immature stock to the market and to save the breeding
herds. On account of the situation confronting many of the small
banks in the West, and the limitations or restrictions imposed upon
them by State laws, it was clearly apparent that additional financing
machinery should be provided to meet, in a satisfactory way, the
needs of the live-stock industry. The matter was thoroughly canvassed with the committees and others in the various places, and
Utah, Wyoming, Colorado, Kansas,, and New Mexico, following the
visit of the managing director, decided to form compa;nies with capital
aggregating $1,900,000 to make live-stock loans in their respective
territories in cooperation with the. W a r Finance Corporation. At a
meeting in Fort Worth, Tex., on October 12, citizens of the State decided to organize a company, with large capital, to make live-stock
loans in Texas and adjoining States. Subscriptions amounting ttj
$950,000 were promptly pledged, and it is hoped to bring the total up
to $1,500,000. Similar companies, with substantial capital, are in the
process of formation or under consideration in other States, including Oklahoma, South Dakota, Idaho, Montana, Oregon, and
Arizona. Through the organization of these companies, supplementing the facilities afforded by existing loan companies and banking institutions, the corporation undoubtedly will be able to make its
funds available throughout the live-stock sections of the country
promptly on a large scale.
At the time of this report the machinery for the administration of
the agricultural credits act is in full operation. The agricultural loan
committees in the various sections of the country are functioning
actively and large numbers of applications are being received.
Many loans already have been announced and there is every indication that, with the whole-hearted cooperation of public-spirited
citizens and business men which the corporation is receiving everywhere, it will accomplish a great deal toward bringing about more
stabilized conditions in the agricultural industry.




SECRETARY OF THE TREASURY.

55

The following table shows the advances approved by the corporation from January 4,1921, to November 15, 1921:
1. Export advances approved by War Finance Corporation:
Cotton
$47, 527, 598. 00
Tobacco 1
2,399, 369. 00
Wheat-—
—
•
11, 500, 000.00
Condensed milk
i.—.
1,000,000.00
Canned fruit and vegetables
400,000.00
Dried fruit
1,250, 000. 00
Meat products
1,000, 000.00
Railroad equipment
2,925,000. 00
Copper
.
145,600. 00
Sugar-mill machinery
.
317,140. 00
Agricultural machinery
_
:—
500,000.00
Total.-

-

1

-

68,964, 707. 00

2. Advances for agricultural purposes approved by War Finance
Corporation:
Wheat
—
:
15,000,000.00
Cotton
.>_^
13, 025,214. 50
Live stocli
5, 920,016. 89
General agricultural purposes—
16,172,844. 82
Total

50,118, 076. 21

Grand total

119,082, 783.21

Of the total amount, $6,052,882.53 represents advances to exporters,
$63,700,000 to cooperative associations, and $49,329,900.68 to banking"
institutions. These figures, of course, represent only advances approved by the corporation and do not include many transactions now
in the process of negotiation. Furthermore, it must be remembered
that the agricultural credits act did not become law until August 24.
As the act is nation-wide in its application, some time necessarily
was required to set up the machinery for its administration. With
the completion of the task of organization, it is to be expected that
there will be a large and steady increase in the usefulness of the
corporation, especially in connection with advances for agricultural
purposes under section 24.
SOLDIERS' BONUS.

The Treasury's position with regard to the soldiers' bonus or so-,
called adjusted compensation for veterans of the war, has been set
forth in the Secretary's letter of July 2,1921, to Senator Frelinghuysen in response to Senator Frelinghuysen's letter of June 24, 1921,
which requested the views of the Treasury as to S. 506, " to provide
adjusted compensation for veterans of the World War," with par-




56

'

REPORT ON T H E

FINANCES.

ticular reference to the financial obligations it Avould have entailed.
These letters are included herein as Exhibit 33, page 228. The position of the Pre»^ident in. regard to the soldiers' bonus was subsequently
stated in a special message to the Senate, dated July 12, 1921, which
is set forth herein as Exhibit 34, page 232.
Conditions have not changed since the Secretary's letter and the
President's message, and the Treasury's attitude remains the same.
Even without any soldiers' bonus or adjusted compensation, the estimates show that the Federal Government will spend in the fiscal year
1922, and again in the fiscal year 1923, about $450,000,000 a year for
the relief of veterans of the late war.
.

.

SECURITIES OWNED BY T H E U N I T E D STATES GOVERNMENT.

The aggregate amount of securities oAvned by the United States
Government on June 30, 1921, as reported to the Treasury and shown
in detail on page 210, Exhibit 26, was $11,326,731,680.72, as against
a total of $11,101,589,306.30 at the close of the previous fiscal year,
a net increase of $225,142,374.42, w.hich is due principally to the increase of $210,510,003.67 in the obligations of carriers acquired
through loans to railroads from the $300,000,000 revolving fund provided in section 210 of the transportation act, approved February 28,
1920, a^ amended, and the increases in Federal land bank bonds and
miscellaneous securities. The securities owned on June 30, 1921, for
descriptive purposes, may be divided into five general classes, namely,
o ( l ) ' f o r e i g n obligations, $10,083,917,206.59, principal amount; (2)
capital stock of war emergency corporations, $268,550,376.57, par
amount; (3) railroad securities, $680,438,653.67, principal amount;
(4) Federal land bank securities, $189,735,675; and (5) miscellaneous securities, $104,089,768.89.
The foreign obligations, amounting in the aggregate to $10,083,917,206.59, include (a) loans to foreign Governments under the authority
of the acts approved April 24, 1917, and September 24, 1917, as
amended (on the basis of cash advances less repayments of principal),
$9,434,774,829.24; (h) foreign obligations received from the Secretary
of W a r and the Secretar}^ of the Navy on account of sale of surplus
war supplies, $565,048,413.80; and (c) foreign obligations received
from the American relief administration on acco tint of relief, pursuant to the act approved February 25, 1919, $84,093,963.55. The
total of these obligations on June 30, 1921, was $8,136,916.14 less than
on June 30, 1920, due, principally, to the net excess of repayments of
foreign Governments on the principal of their obligations, pursuant
to special agreements, or on adjustment of accounts.
The war emergency corporation stock owned by the United States,
amounting in the aggregate to $268,550,376.57, includes the capital




SECRETARY OF THE TREASURY.

57

stock of the .Emergency Fleet Corporation, the Housing Corporation,
the Sugar Equalization Board, the United States Grain Corporation,
and the W a r i^inance Corporation. The total decrease in this class
of securities during the fiscal year 1921 was $122,032,000, due to a
reduction of $100,000,000 in the capital stock of the United States
Grain Corporation effected August 20, 1920, and an increase of
$22,032,000 in the balance to the credit of the War Finance Corporation with the Treasurer of the United States, which is used in the
statement as an offset against the amount of the outstanding capital
stock of this corporation.
The railroad securities, amounting in the aggregate to $680,438,653.67, consist of (a) the obligations of carriers acquired under section 7 of the Federal control act approved March 21,1918, as amended
(exclusive of obligations of carriers acquired by the Director General of Eailroads from the operating revenues of carriers under the
provisions of section 12 of the above-mentioned act), $64,097,250;
(6) equipment trust gold notes acquired by the Director General of
Eailroads pursuant to the Federal control act "of March 21, 1918, as
amended, and the act approved November 19,1919, to provide for the
reimbursement of the United.States for motive power, cars, and other
equipment ordered for carriers under Federal control, $311,260,300;
(c) obligations of carriers acquired pursuant to section 207 of the
transportation act approved February 28, 1920, as amended, on account of Federal control, $89,506,500; and (d) the obligations of
carriers acqtiired pursuant to section 210 of the transportation act
approved February 28, 1920, as amended (loans to railroads provided from the $300,000,000 revolving fund under section 210),
$215,574,603.67..
The holdings of railroad securities increased $235,591,548.67 during
the fiscal year, of which aniount $210,510,003.67, as above stated,
represents the increased amount of outstanding loans to carriers from
the $300,000,000 revolving fund provided in section 210. of the transportation act, 1920, as amended. Since the close of the fiscal year
1921, sales of the 6 per cent equipment trust gold notes of carrier corporations described in (6) above have been made by the Director
General of Eailroads up to November 15,1921, in the principal amount
of $109,338,800, all at par and accrued interest. The proceeds of these
sales, pursuant to section 202 of the transportation act, have been
covered into the Treasury to the credit of the appropriation " Federal
control of transportation systems," and are available for use by the
Director General of Eailroads in connection with the settlement of
matters growing out of Federal control.
The Federal land bank securities, in the aggregate amount of
$1893735,675, consist of (a) capital stock of the 12 Federal land banks
still owned by the United States, $6,700,675; and (&) Federal farm




58

REPORT ON T H E

FINANCES.

loan bonds acquired pursuant to the act approved January 18, 1918,
as extended by the joint resolution approved May 26, 1920, $183,035,000. During the fiscal year 1921 repayments were" made by the
Federal land banks on their capital stock owned by the United States,
amounting in the aggregate to $954,835. The holdings of farm loan
bonds increased through purchases $16,650,000 during the fiscal year,
and on June 30, 1921, consisted of $136,885,000 of 4^ per cent bonds
and $46,150,000 of 5 per cent bonds.
The miscellaneous securities, reported, amounting in the aggregate
to $104,089,768.89, consist of (a) securities received by the Secretary
of W a r on account of sales of surplus war supplies, $23,407,563.16;
(b) securities received by the Secretary of the Navy on account of
sales of surplus property, $12,906,303.26; and (c) securities received
by the United States Shipping Board on account of sales of ships,
etc., $67,775,902.47, while at the end of the fiscal year 1920 the total
miscellaneous securities were shown as $65,192. This large increase
during the fiscal year 1921 represents chiefly more complete reports .
from the offices concerned rather than additional securities acquired.
The statements of securities owned are necessarily made up from the
latest reports received by the Treasury, and when the statement for
June 30, 1920, was prepared the Treasury had not then been able to
obtain adequate reports from all the departments and agencies of the
Government which held the securities.
The securities reported by the Treasury as owned by the United
States are held in safe-keeping by the Treasurer of the United States
and the Federal reserve banks to the extent that they have been turned
over to the Treasury. Some^of the securities, however, though reported to the Treasury, are still held by other departments and
agencies of the Government, but the amounts so held are relatively
small as compared with the total.
TRANSACTIONS I N T H E I N T E R E S T - B E A R I N G P U B L I C DEBT OF T H E U N I T E D
STATES.

During the fiscal year 1921 the interest-bearing debt of the United
States was reduced from an aggregate total of $24,061,095,361.36 on
June 30, 1920, to an aggregate total of $23,737,352,080.37 on June 30,
1921, a net reduction of $323,743,280.99, of which $9,098,500 became
noninterest bearing. Interest-bearing public debt issues for all accounts during the year aggregated $19,412,443,780.10, of which $8,826,500,060.10 were new issues against payments into the Treasury,
the remainder being issues against securities surrendered for reissue.
Eetirements for all accounts aggregated $19,727,088,561.09, of which
$9,141,192,741.09 were retirements against payments by the Treasury,
the balance being retirements on-account of reissues.




SECRETARY OF THE TREASURY.

.

59

During the fiscal year 17 series of Treasury certificates of indebtedness were offered to the public for subscription. Subscriptions
amounting to $4,765,586,500 were received for these issues, and an
aggregate amiount of $3,439,610,500 was allotted thereon, and certificates issued. Of these issues, $1,406,816,500 were loan certificates and
$2,032,794,000 were tax certificates. The amount of the loan and tax
certificates outstanding, as shown by the Public Debt Statements, was
reduced during the fiscal year 1921 from $2,485,550,500 to $2,450,601,000 or $34,949,500. During the year $43,500,000 special certificates of indebtedness deposited as security for the issues of Federal
reserve bank notes under the Pittman Act were redeemed and retired, and the total amount of Pittman Act certificates reduced from
$259,375,000 to $215,875,000.
One new feature entered into the public debt transactions of the
year in the form of an issue of $311,191,600 of Treasury riotes on
June 15, 1921. These notes, bearing interest at 5 | per cent and of
three years' maturity, were issued pursuant to the Treasury's announced program for dealing with the short-dated debt, with a view
to its gradual distribution over the period from 1923 to 1928 in order
to facilitate the refunding operations incident to the maturity of the
Victory Liberty loan. This subject is more fully discussed at page
3 of this rei)ort.
During the year $432,260,550 aggregate par amount of Liberty
bonds and Victory notes were retired for various accounts, as follows:
5 per cent bond purchase fund_^
$70,375,300
Cumulative sinking fund
_,
261, 250, 250
Purchases from repayments of loans to foreign Governments
73,939, 300
Received for Federal estate and inheritance taxes
26, 527, 200
Forfeitures
38,900
Miscellaneous receipts
129,100
Gifts
—
' 500
Total

^

432, 260, 550

During the year the sum of $60,724,742.27 was received into the
Treasury as the net earnings derived by the United States from the
Federal reserve banks, as franchise tax, and $60,724,500 of this
amount was applied to the redemption of maturing certificates of
indebtedness.
Pursuant to the provisions of Treasury Department Circular No.
138, dated April 21, 1919, offering the Victory Liberty loan for subscription, the Secretary of the Treasury has declared forfeited all
delinquent Victory Liberty loan subscriptions filed with an official
agency, together with all payments made thereon and all right and
interest in the notes allotted. This forfeiture was declared by Treasury Department Circular No. 239, dated May 11, 1921, attached as
Exhibit 54, page 296, under which all forfeited installment payments



60

REPORT ON THE .FINANCES.

were covered into the Treasury to the credit of miscellaneous receipts.
Delinquent subscriptions of the first, second, third, and fourth Liberty
loans had previously been declared forfeited as reported in 1919 and
1920.
The conversion privilege accorded holders of Liberty 4's through
the extension of the original privilege under authority of section 5 of
the Victory Liberty loan act has been exercised during the year
through the conversion of $47,819,700 first 4's and $162,137,200
second 4's into 4^ per cent bonds. On June 30, 1921, only $17,982,800
first 4's of an original issue of $568,318,450, and only $77,870,150
second 4's of an original issue of $3,807,865,000 were still outstanding.
Eeissue transactions in the public debt Avere extraordinarily heavy
during the year, an aggregate par amount of $10,585,944,570 being
presented on this account. Eeissue transactions include denominational exchanges, interchanges of coupon and registered issues, conversions, and exchanges of temporary for permanent bonds. The
greatest number of transactions has been due to exchanges of temporary for permanent Liberty bonds, 26,086,382 pieces pf an aggriegate
face amount of $7,229,952,700 having been exchanged during the year.
On June 30, 1921, 3,666,785 pieces of coupon Liberty bonds in temporary form, in the aggregate face amount of $358,758,100, were still
outstanding.
For details of transactions in the public debt, attention is invited
to Exhibits 38 to 52, appearing on pages 243 to 272 of this report.
Bonds ^purchased from repayments of, foreign loans.
In accordance with the provisions of section 3 of the first Liberty
bond act and section 3 of the second Liberty bond act, repayments
by foreign Governments on account of the principal of their obligations purchased by the United States under authority of these acts
have been applied to the purchase and retirement of Liberty bonds..
During the fiscal year 1921, the sum of $70,706,935.99 was available
for expenditure on this account, and a total of $73,939,300 par
amount of Libert}^ bonds was purchased at a cost of $70,669,004.88.
These purchases were summarized in the following announcement
made public by the Secretary of the Treasury on July 25, 1921:
The Secretary of the Treasury announces that during the fiscal year ended
June 30, 1921, $73,939,300 face amount of Liberty bonds were purchased and
retired by the Treasury out of repayments of principal by foreign Governments.
These purchases were made pursuant to section 3 of the second Liberty bond
act, as amended, which provides that the Secretary of tlie Treasury is authorized to apply any payments received from foreign Governments on account of
the principal of their obligations to the redemption or, purchase at not more
than par and accrued interest of any outstanding Liberty bonds. The foreign




SJiCKETAKY OF THJi TREASUKY.

61

repayments frqm which the purchases in question were made comprise $30,517,633.57 of repayments by the British Government on obligations deemed to have
been given on accouht of Pittman silver, and $16,000,000 on other obligations;
^19,302,357.55 by the French Governm'ent; $1,512,901.66 by the Belgian Gov•ernment; $605,326.34 by the Serbian Government; $1,794,180.48 by the Roumanian Government; and $974,500 by the Cuban Government; a total of $70,706,899.60 of repayments. For the most part, these payments were on special
account, or by way of adjustment of accounts, and should not be taken to indicate that any generar program of repayment of the foreign obligations has
begun.
The'Liberty bonds retired on tbis account include $2,145,950 of second 4^'s,
:$44,365,550 of tbird 41's and. $27,427,800 of fourth 41's. The total principal
cost was $70,669,004.88. Of the bonds retired, .$95,100 of second 4i's, $10,371,900 of third 4i's and $27,,427,800 of fourth 4i's were acquired from the War
Finance Corporation, out of bonds purchased at par by the corporation from
the United States Railroad Administration pursuant to the requirements of
the act of Congress approved May 8, 1920.

The follov^ing cumulative table sets forth in summar}^ form the
purchases ori this account to June 30, 1921:
Title.

Par amount.

Amount paid.

•.Second 4{'s:
Fiscal year 1921
T h i r d 4i's:

$2,145,950.00

$1, 891, 891.61

Fiscal year 1919
Fiscal year 1920
Fiscal year 1921

7,921,700.00
70,154,950.00
44,365,550.00

7,569,976.52
66,520, 512.76
41,349,313.27

F o u r t h 4i's:
Fiscal year 1920
Fiscal year 1921

2, 514,950.00
27,427, 800.00

2, 230,482.32
27,427,800.00

7,921, 700.00
72,669,900. 00
73,939,300. 00

7, 569,976. 52
68, 750, 995. OS
70,669,004. 88

154, 530,900. 00

146,989,976. 48

Total:
Fiscal year I 919
Fiscal year 1920
Fiscal year 1921
Grand total

All the bonds purchased have been canceled and retired and the
public debt reduced in corresponding amounts.
Cumulative sinldng fund.
The first year's operations under the cumulative sinking fund established by se^ction 6 of the Victory Liberty loan act, approved
March 3, 1919, were completed on June 30, 1921.' The sinking fund
appropriation for the 3^ear amounted to $256,230,010.66, of which an
initial appropriation of $253,404,864.87 became available on July 1,
1920. The additions to the initial appropriation during the year on
account of the interest that would haA^e been payaHle during the year
on the securities purchased and retired through the sinking fund
amounted to $2,825,145.79.
Purchases for sinking fund account were confined to Victory notes.
During the year $212,100,250 face amount of Victory 4|'s was purchased at a principal cost of $206,968,711.38, and $49,150,000 face




62

.

REPORT ON THE FINANCES.

amount of Victory 3f's was purchased at a principal cost of $47,875,865.12. . Total purchases aggregated $261,250,250. face amount, and
the total principal cost aggregated $254,844,576.50. The unexpended
balance of the sinking fund appropriation of $1,385,434.16 on June
30, 1921, was carried over into- the fiscal year 1922 and continues
available.
All the sinking fund purchases were made in the open market, at
the prevailing market prices, through the Federal Keserve Bank of
New York and the Federal Eeserve Bank of San Francisco as fiscal
agents of the United States. Substantially all of the purchases were
made in the New York market, which is the central market for the
country, and the purchases in San Francisco were relatively small.
All the notes purchased have been canceled and retired, and the public debt reduced in corresponding amount.
Further details of the purchases are set forth in the separate report submitted to the Congress on the subject of the cumulative sinking fund as required by law. The purchases were summarized after
the close of the fiscal year in the following public announcement on
July 11,1921, by the Secretary of the Treasury :
The Secretary of the Treasury announces that the first fiscal year's operations
under the cumulative sinking fund established by the act approved March 3,
1919, were completed June 30,1921, and that $261,250,250 face amount of Victory
notes were purchased and retired for account of the sinking fund during the
fiscal year. The total principal cost of the notes purchased was $254,844,576.50.

The following statement shows the detailed figures which enter
into the expenditures for the cumulative sinking fund for the fiscal
years 1921, 1922, and 1923:
Expenditures for the sinking fund.
FISCAL YEAR 1 9 2 ] .

[To nearest one hundred dollars.]
Initial credit, July 1, 1920
$253, 404, 900
Secondary credit (unaccTued interest on Victory notes purchased
up to June 15, 1921)
.
2,825,100
Total amount available for expenditures
Total expenditures on account of principal

—;.

256, 230, 000
— 254, 844, 600

Unexpended balance^ carried over to fiscal year 1922

1,385,400

FISCALYEAR 1922 (ESTIMATED).

Balance forward July 1, 1921
Initial credit July 1,^1921
Total




-__.

$1, 385, 400
253,404,900
254, 790,300

SECRETARY OF T H E TREASURY.
Secondary credits Dec. 15, 1921:
'
Accrued interest on notes purchased prior to June
15, 1921
Accrued interest on notes purchased between
June 15 and Dec. 15, 1921
Total
Secondary credits June 15, 1922:
Accrued interest on notes purchased prior to Dec.
15, 1921.._
.
Accrued interest on notes purchased between
Dec. 15, 1921, and June 15, 1922
^
Total—..

°

63

$5, 864.100
1,450,600
——

$7, 314, 700

8, 765, 300
1, 571, 900 '

Grand total

10, 337, 200
272, 442,200

FISCALYEAR 1923 (ESTIMATED).

Initial credit July 1, 1922
Secondary credits Dec. 15, 1922:
Accrued interest on notes purchased prior to June
15, 1922

253, 404, 900

11,909,100 .

Accrued interest on notes purchased between
June 15 and Dec. 15, 1922

1, 644, 450

Total
1
Secondary credits June 15, 1923:
Accrued interest on notes purchased prior to Dec.
15, 1922
15,198, 000
Accrued interest on notes purchased between
Dec. 15, 1922, and May 20, 1923
1, 682, 350
Total——

-

Grand total

13, 553, 550

16,880, 350
283,838,800

) Five per cent hand purchase fund.
In furtherance of the Treasury's plan for dealing with the shortdated debt, as announced in the Secretary's letter of April 30, 1921,
to the chairman of the Committee on Ways and Means and further
developed in the letter of June 8, 1921, to the banking institutions
of the country, substantial purchases of Victory notes have been
made in the market during the year. For the most part these purchases have been made, as already indicated, on account of the cumulative sinking fund, but to some extent purchases have been made, in
connection V7ith offerings of Treasury notes, under authority of section 15 of the second Liberty bond act, as amended, on account of the
so-called bond purchase fund. Purchases on this account were resumed June 7, 1921, and between that date and the close of the fiscal
year $64,523,300 face amount of Victory 4|'s and $5,852,000 face
amount of Victory 3|'s were purchased, at a cost of $63,617,366.52




64

REPORT ON TFIE FINANCES;

and $5,760,891.33, respectively. The total face amount purchased Avas
"$70,375,300, at a total principal cost o f $69,378,257.85.
Bonds and notes retired on miscellaneous accounts.
The following tables show the retirements of Liberty bonds and
Victory notes on account of presentation for estate and inheritance
taxes, forfeitures to the United States, and gifts, during the fiscal
year ended June 30, 1921 :
Retirements through presentation of Liberty bonds and Victory notes in payment of estate or inheritance tax for the fiscal year ended June 30,1921.
Face amount.
Loan.
Coupon.
First 4i's
Second 4i'.s.
Third 4i's.
Fourth 4i's..
Victorv 4fs

Registered.

Total.

SlSl, 700
5,219,-250
5,944, 200
10,958,100
928,300

$200, S O
O
0,624,000
6, 792, 700
11, 939, 250
970,450

23,231,550

Total...

S19,100
1,401,750
848,500
981,150 =
42,150
3,295,050

20 527,200

Bonds and notes retired on account of forfeitures and miscellaneoiis receipts for
the fiscal yea>r ended June SO, 1921.
Face araount.
Loan.
Coupon.
First ;?i's..-..
First i's..
Second 4's.Second 4i's. . . .
Third 4J's.
Fourth 4Vs.
Victorv 44's

. . .

Registered.

S500
500

$150
550
1,000
16,000
2, 250
146,600
1,450

1,000

168,000

$150
550
1, O C
O
15,500
1, 750
1 146,600
1,450
167, 000 ^

Total

Total.

1 Includes $129,100 on account of miscellaneous receipts.

Bonds retired on account of gifts for the fiscal year ended June 30, 1921.
Face amount.
Loan.
Coupon.

Registered.

Total.

Third 4Vs
Fourth 4i's.

S50
450

S50
450

Total.

500

500

Eevised regulations governing the acceptance of Liberty bonds
and Victory notes for Federal estate taxes were prescribed in Treasury Department Circular No. 225, dated January 31, 1921, which
appears as Exhibit 53 to this report, page 276.




SECRETARY OF THE TREASURY.

65

TREASURY NOTES AND CERTIFICATES OF I N D E B T E D N E S S .

The previous annual report of the Secretary of the Treasury covered the Treasury certificate operations through the offering of
November 15, 1920. The next issue was the usual quarterly operation
in connection with the December 15, 1920, payment of income and
profits taxes and the heavy Treasury certificate maturities from December 15, 1920, to January 15, 1921. Furthermore, the semiannual
interest on the first Liberty loan and the Victory Liberty loan was
due on Deceniber 15, 1920. Two issues of t a x certificates were
offered, both dated December 15, 1920, one bearing 5 | per cent interest and maturing in six months, on June 15, .1921, the other bearing 6 per cent interest and maturing in one year, on December 15,
1921. The offering was for $500,000,000, or thereabouts. The situation existing at the time of these offerings and the terms of the issues
were described in detail in a letter to the banks and trust companies
of the country, dated December 8, 1920, which is attached as Exhibit
22, page 195. These two issues were well received by the investing
public and subscriptions closed on the date of issue. Seven of the
Federal reserve districts oversubscribed their quotas and about 30
per cent of the oversubscriptions were allotted, making the total allotment $589,680,500 for the two issues, of which $188,123,000 was forthe June 15, 1921, maturity, and $401,557,500 for the December 15,
1921, maturity.
I n order to provide for maturing Treasury certificates and continued heavy expenditures, particularly on account of the railroads,
two issues of loan certificates were offered on January 15, 1921, one
bearing 5^ per cent interest and maturing in three months, on April
15, 1921, the other bearing 5 | per cent interest and maturing in nine
months, on October 15, 1921. Subscriptions, which closed on the day
of issue, aggregated $588,596,500, as against an offering of $250,000,'000, or thereabouts, and the total amount allotted was $310,686,500,
of which $118,660,000 was for the April 15, 1921, maturity, and
•$192,026,500 for the October 15, 1921, maturity. Nine Federal
reserve districts oversubscribed their quotas and only a small percent:age of the oversubscriptions was allotted.'
Another issue of loan certificates, to the amount of $100,000,000,
or thereabouts, was offered on February 15, 1921, bearing 5^ per
oent interest and maturing in five months, on July 15, 1921. This
issue was oversubscribed by more than 100 per cent and in a public
stateinent on Februar}^ 16, 1921, the day following the offering, the
Secretary made the following comments with reference to its recep.tion by the public:
,
The prompt oversubscription of this offering shows that Treasury certificates
have become firmly established on an investment basis, and enjoy a broa'3
70073—FI 1921
5




66

' R E P O R T O N THE FINANCES.

market among investors throughout the country. It is particularly interesting
in view of the fact that most of the Federal reserve banks, namely the Federal
reserve banks at New York, Cleveland, Richmond, Chicago, Atlanta, St. Louis,
DaUas, and San Francisco bave already establisbed a 6 per cent rate on all
paper secured by Treasury certificates of indebtedness. According to the latest
reports of the Federal Reserve Board, only 120 millions of Treasury certificates, or about 5 per cent of the total amount of loan and tax certificates outstanding, were pledged with the Federal reserve banks on February 11, 1921, to
secure loans.

The next offering was made in connection with the heavy maturitj^
of certificates on March 15, 1921, which was also the first quarterly'
tax payment date for the calendar year 1921. The semiannual interest on* the third Liberty loan was due on the same date. Two
series were offered, both tax certificates dated March 15, 1921, one
bearing 5^ per cent interest, maturing in six months, on September
15, 1921, and the other bearing 5f per cent interest, maturing in
one year, on March 15, 1922. These rates represented a decline of
one-fourth of one per cent on each series from the prevailing rates of
the latter half of 1920. The offering, which was for $400,000,000, or
thereabouts, met with a prompt response from investors, and subscriptions, which closed on thcoday of issue, aggregated $503,436,500.
The amount allotted was $193,302,000 for the September 15, 1921,
' maturity, and $288,501,000 for the March 15, 1922, maturity. The
general situation at the time of these issues was described at length
in a circular letter to the banks and trust companies of the country,
dated March 9, 1921, which is attached as Exhibit 23, page ,197.
An issue of loan certificates was announced for April 15, 1921, in
the amount of $150,000,000, or thereabouts, for the purpose of meeting maturing loan certificates of that date and the heavy current
expenditures of the Treasury. The series bore 5J per cent interest
and had a maturity of six months. The books .closed on the date
of issue and subscriptions were more than double the offering. Total
subscriptions were $320,036,000, of which $190,511,500 was allotted.
This was followed by another offering of loan certificates to the
amount of $200,000,000, or thereabouts, dated May 16, 1921, bearing
5J per cent interest and maturing in nine months, on February 16,
1922. This issue met the same quick response, and subscriptions
amounted to $532,100,000, of which $256,170,000 was allotted. This
was the largest oversubscription that had been received on any issue
of certificates up to that time.
I n accordance with the new policy of the Treasury, the offering on
June 15, 1921, as a part of the usual quarterly operations in connection with payments of income and profits taxes and heavy ma-,
turities of certificates, consisted of three-year 5f per cent Treasury
notes and one-year 5J per cent tax certificates. The rate for the
certificates was one-half of one per cent lower than the mte six months




SECRETARY OF THE TREASURY.

67

earlier on certificates of the same maturity. I n spite of the size of
the combined- offering, $500,000,000, or thereabouts, it was heavily
oversubscribed. Total subscriptions aggregated $788,007,000, and
the amount allotted was $311,191,600 Treasury notes and $314,184,000
certificates. The terms of the offering and the general position of
the. Treasury were set forth in a letter of the Secretary under date
of June 8, 1921, which is attached as Exhibit 24, page 200.
The success of the combined offering on June 15, 1921, permitted
the next offering to be postponed till the latter part of July, although
certificates amounting to $132,000,000 matured on July 15, 1921.
TAVO issues were then offered, both dated August 1, 1921; one of tax
certificates bearing 5^ per cent interest and maturing in seven and
one-half months, on March 15, 1922; the other of loan certificates
bearing 5^ per cent interest and maturing in one year, on August
1, 1922. Prior to this offering a number of the Federal reserve
banks, including Boston, New York, and Philadelphia, had reduced
the discount rate on certificates of indebtedness from 6 per cent to
5^ per cent. Although the amount offered in those two issues was
$300,000^000, or thereabouts, the subscriptions aggregated $1,030,006,500, or more than 300 per cent of the offering. All of the Fedr
eral reserve districts oversubscribed their quotas. The total amount
of subscriptions allotted was $376,362,500, of which $116,891,000 was
for the March 15, 1922, maturity, and $259,471,500 for the August 1,
1922, maturity.
On September 15,1921, a combined.offering was made of three-year
5J per cent Treasury notes, due September 15, 1924, one-year 5^ per
cent tax certifi.cates, due September 15, 1922, and six months 5 per
cent tax certificates, cLue March 15, 1922. This represented a reduction of one-fourth of one per cent from the rate paid on the former
issue of Treasury notes and a further reduction of one-fourth of one
per cent on the rate for certificates of both maturities. The combined
offering was $600,000,000, or thereabouts, but total subscriptions
aggregated $1,587,838,900. The amount of subscriptions allotted was
$698,149,100, of which $390,706,100 was for Treasury^notes, $182,871,000. for the' one-year certificates, and $124,572,000 for the six
months' certificates. The conditions prevailing at the time of this
offering and the terms of the issues were set forth in a letter to the
banks and trust companies of the country dated September 9 1921,
which is attached as Exhibit 25, page 203.
The next offering of certificates was made on November 1,1921, and
consisted of an issue of 4^ per cent five months loan certificates due
April 1,1922, and 4^ per cent tax certificates, maturing in 10-^ months,
on September 15, 1922. The reduction in rates from the September
15, 1921, issues was about three-fourths of one per cent on each
maturity and reflected the improved conditions in the money and



68

REPORT ON THE FINANCES.

investment market. The offering was for $200,000,000, or thereabouts, but subscriptions aggregated $811,064,000. The amoimt
allotted was $231,487,500, of which $51,796,000 was for the April 1,
1922, maturity, and $179,691,500 for the September 15,1922, maturity.
Substantial progress has been made during the past seven months in
' the retirement of the special certificates of indebtedness issued to
secure Federal reserve bank notes and commonly known as Pittman
Act certificates. The policy of the Treasury has been to retire each
month $5,000,000 of these certificates not required to secure issues of
Federal reserve bank notes and in addition aii amount equivalent
to the amount of silver, certificates made available each month as a
result of the coinage of silver dollars. With reference to the retirement of Pittman Act certificates, the Secretary made the following
public statement on April 1, 1921.
The Treasury bas begun the retirement of the special Treasury certificates
of indebtedness- issued to secure Federal reserve bank notes under the Pittman
Act, approved April 23, 1918. Pittman Act certificates to the amount of
$5,000,000 were retired on February 28, 1921, out of the general fund and
$5,000,000 additional were similarly retired, on March 29. The Treasury expects to continue to retire Pittman Act certificates npt required to secure issues
of Federal reserve bank notes at tbe rate of about $5,000,000 per month.
Pursuant to the terms of the Pittman Act, the Treasury is also coining into
standard silver dollars the silver bullion purchased under the act. Silver
certificates will be issued in regular course against the standard silver dollars
so coined and Federal reserve bank notes and Pittman Act certificates pledged
to secure them will be retired in corresponding amounts. Pittman Act certificates to the amount of $2,000,000 have been retired up to March 31, 1921, as
the result of the coinage of standard silver dollars. This' means that the total
amount of Pitcraan Act certificates outstanding has been reduced from $259,375,000 on December 31, 1920, to $247,.S75,000 on March 31, 1921.

The total amount of these certificates retired between December 31,
1920, and October 31, 1921, was $113,000,000 and the amount outstanding had been reduced to $146,375,000 on the latter date.
A table showing in detail all the issues of certificates of indebtedness, from July 1, 1920, to October 31, 1921, and a summary thereof
from the beginning of the war, is attached as Exhibit 1, page 169.
The official circulars for the various offerings of loan and tax certificates and Treasury notes, together with offers to redeem before
maturity at the option of the holders, issued since the annual report
of the Secretary of the Treasury for 1920, are attached as Exhibits 3
to 21, pages 177 to 195.
The aggregate amount of certificates issued from the beginning of
the war to October 31, 1921, was $51,277,777,808.53. Of this total,
$21,221,129,500 represent loan certificates; $10,958,236,500 were sold
in anticipation of income and profits taxes; and $19,098,411,808.53
comprised special issues. The amount of unmatured certificates of all
classes outstanding on October 31, 1921, aggregated $2,078,593,000,




69

SECRETARY OF THE TREASURY.

consisting, as shown by the following table, of $1,416,576,500 tax
> certificates, $515,641,500 loan certificates, and $146,375,000 Pittman
Act certificates. The following table gives in detail the Treasury
certificates of indebtedness outstanding on October 31,1921:
Unmatured Treasury certificates of indebtedness outstanding October 31, 1921.
TAX

CERTIFICATES.
Interest
(percent).

Series.

Amounts

Due.

TD,1921...
T M , 1922...
TJ, 1922....
T M 2 , 1922.
T S , 1922....
T M 3, 1922.

Dec. 15,1920
Mar. 15,1921
J u n e 15,1921
A u g . 1,1921
Sept. 15,1921
do

Dec.
Mar.
June
Mar.
Sept.
Mar.

15,1921
15,1922
15,1922
15,1922
15,1922
15,1922

$389, 557, 500
288, 501, 000
314,184,000
116, 891,000
182, 871, 000
124, 572,000
1, 416, 676, 500

T o t a l t a x certificates.
LOAN

CERTIFICATES.

A, 1922..
B , 1922.

M:ay 16,1921
Aug. 1,1921

Feb. 16,1922.
Aug. 1,1922

$256,170,000
259,471,500
515,641,500
1,932,218,000

T o t a l loan certificates
T o t a l t a x a n d loan certiflcates..

OTHER C E R T I F I C A T E S .
Pittman Act certificates

. .

$146, 375, 000

. . . .

Total outstanding certificates Oct. 31,1921.

_

2,078, 593, 000

1
MARKET

PRICES

OF

LIBERTY

BONDS

AND

VICTORY

NOTES.

Market prices of Liberty bonds and Victory notes hafe shown
striking improvement during the past year, and in many cases have
appreciated over 10 points from the low price reached during the
1920 decline. Victory notes have recently touched par and are
quoted constantly within a small fraction of a point of par, while
many of the Liberty bonds are now selling at 95 or better. The following table gives the low points reached by Liberty bonds
and Victory notes and the closing quotations on the 15th of each
month, beginning with November, 1920:
First
3Vs.

Date.

Low point

First
4i's.

Second Second
4's.
4i's,

I$86.30

! $83.00 '$84.00

<$81.70

93.10
90.12
92. 30
91.04
90.60
90.04
88.28
88. 42
86.50
88.70
88. 08
90.82
95.10

88.20
86.12
87.60
87.20
87.16
87.74
87.62
87. 80
87. 34
87.90
88.42
93.14
94.20

85. 70
85.10
86.90
87.00
86.78
87.74
87.30
86.60
86.92
87.56
88.28
92.40
94.20

1920—Nov. 15..
Dec. 1 5 . .
1921—.Ian. 1 5 . .
Feb. 15..
Mar. 1 5 . .
Apr. 15..
May 1 6 . .
June 15..
July 15..
Aug. 15..
Sept. 15Oct. 15.Nov. 15..
1 J u l y 9, 1921.

First
4's.

2 M a y 19, 1930.




86.02
86.. 90
87. 30
86.92
87.40
87.72
87.44
87.12
87.70
88. 28
92.66
94.30

3 May 18, 1920.

Third
4i's.

Fourth
4i's.

Victory

4f's.

'$82.00 5 $86.00 < $82.54 < $94.82
85.66
85.36
87.12
86. 86
86.88
87.64
87. 36
86.74
87.02
87.68
88.44
92.72
94.22

88.06
87.90
90.30
90.14
90.18
90.76
90.72
91. 50
91.16
91.90
92. 42
94.82
96.20

* May 20, 1920.

86. 28
85.90
87.22
87.02
87.00
87.76
87.40
87.00
87.16
87.88
88.62
93.02
94.31:

Victory
3Fs.
* $94.72

95.78
95.00
97.24
97.22
97. 24
97.60
97. 90
98.38
98.32
98.76
99.04
99.44
99.68

5 Dec. 21, 1920.

95.74
95.00
97.20
97.23
97.24
97.60
97.92
98.38
98.32
98.70
99.04
99.40
99.68

70

REPORT ON T H E FINANCES.

The rise in the prices of Liberty bonds and Victory notes is in large
measure a reflection of easier credit conditions and lower interest
rates, though better buying on the part of investors and improved
distribution of the public debt doubtless account for much of the
improvement. I t is a well-known economic law that high money
rates and high commodity prices mean low prices for bond and other
fixed income securities, while lower money rates with reduced commodity prices normally bring higher market prices for bonds. This
has been' illusti'ated by the concurrent decline during the past few
months in interest rates and in the yield of Liberty bonds. The
following table, shows the average monthly yield of Liberty bonds
and Victory notes during the past 1 2 months:
*
/Fnst\second
4i's.

Second
4's.

Second
4i's.

5.049
5.248

4.545
4. 594

4. 99S
5.164

5.266
5.437

5. 982
6.296

5.380 .
5. 556

6.469
6. 919

5.448
5.896

5.118
5.147
5.143
5.118
5.117
5.115
5.129
5. 098
5. 016
4.747

4.-421
4. 359
4. 465
4. 379
4.444
4. 456
4.429
4.463
4.519
4.505

4.978
5.029
5.003
4.966'4.975
5.020
4.989
4.944
"4.846
4.587

5. 245
5. 301
5.272
5.234
5.245
5. 289
5. 258
5.211
5.107
4.838

5. 839
5.923
5.881
5. 841
5. 835
5. 756
5. 771
5.658
5.506
5.189

5.349
5.418
5.399
5.360
5.376
5.425
5. 390
5. 338
5.222
4.902

6.125
6. 045
6.036
5.998
5. 902
5.684
5.681
5. 513
5.290
5.119

5.109
5.031
5.022
4.980
4. 888
4.674
4.670
4.507
4.285
4.118

Date.

First
3i's.

First
4's.

First
4i's.

1920
Noveniber
December

3.895
4.117

4.784
4.974

3. 976
4. 032
4.094
4.145
4.236
4. 274
4..359
4.254
4.287 •
4.0S4

4.862
4.879
4.880
4.851
4.849
4.847
4.863
4.828
4.750
4.485.

1921
January
February
March ..
April
May-.. June
July
August
September
October

.

Third
4i's.

Fourth
4i's.

Victory
4|'s.

Victory
3rs.

The increased market prices of Liberty bonds and Victory notea
and their striking return toward par have supplied the answer to the
agitation that the Treasury should adopt some artificial means to
bring about appreciation, as, for example, refunding at a higher rate
of interest, exchange for legal-tender currenc}^, and the like. I t
has become evident that the decline in Liberty bonds was not
due to any defect in the bonds themselves nor to any lack of confidence in the Government's credit, but rather to the excess of
supply over demand and the high rates for money which prevailed as a result of the waste and destruction of the war and the
consequent scarcity of capital and credit. The market value of
securities with fixed rates of interest naturally declined to a point
where the yield became commensurate with market rates of interest,
and now that money rates have begun to decline the reverse process
has ensued and Liberty bond prices have advanced. As the savings
of the public accumulate and interest rates decline, the prices of Liberty bonds must inevitably advance and gradually approach par.A necessary part of the movement back to normal conditions has
been the gradual elimination of Government securities from the portfolios of Federal reserve banks and commercial banks and their




REPORT OF THE SECRETARY. OF T H E TREASURY.

71

assimilation by the investing public. The following table shows the
progress which has been made in the liquidation of loans secured by
Liberty bonds and Victory notes and reflects the gradual absorption
of those securities by the investing public:
Amounts in thousands of dollars.

Date.

Liberty
bonds and
Victory
notes
outstanding.
Amount.

L i b e r t y b o n d s a n d Victory notes o w n e d
a n d held b y weekly r e p o r t i n g m e m b e r
b a n k s t o secure loans.

-

Amount.

H e l d as
O w n e d . 1 coUateral.2
D e c . 3 1 , 1919
JuneSO, 1920...Oct. 31, 1 9 2 0 . . - . .
J u n e 30, 1921
Oct. 31,1921

20,239,626
19,581,201
19,528, 298
19.148,948
1 18,872,437

875,839
807,719
800,772
2 767,755
2 794,728

989,563
992,744
884,,202
652,127
540,000

Total.

Liberty bonds and
Victory notes held
b y Federal reserve
b a n k s t o secure
loans.

P e r cent
P e r cent
of a m o u n t
of a m o u n t
ontstand- Amount.1 outstanding.
ing.

1,865,402
1,800,463
1,684,974
1,419,882
1,334,728

9.22 1,070,064
9.19
910,039
8.63
7.41
606,412
7.07
425,226

5.29
4.65
3.17
2.25

1 These figures are available for a given day each week and are taken for the dates nearest those given
at the left of the table.
2 Estimated.
Between October 15,1920, and November 2, 1921, loans and discounts of the Federal reserve banks
secured by the Government war obligations dechned from $1,192,810,000 to $453,501,000, or 62 per cent.
During the same period loans and discounts based on commercial paper'declined from $1,581,060,000 to
$806,929,000, or only 49 per cent.

GO^TSRNMENT SAVINGS

SECURITIES.

The sale of Government savings securities, including the 25-cent
thrift stamp and the $5 war savings stamp, first offered by the Treasury in 1917, Treasury savings certificates of the $100 and $1,000 denominations, first issued in 1919, with the addition of the $1 Treasury.
savings stamp and the Treasury savings certificate of the $25 denomination, was continued throughout the past year. The Savings Division has been charged with the promotion of the sale
of these securities, maintaining a small sales organization in the
fiscal agency departments of the 12 Federal reserve banks. F o r
reasons both of policy and of the curtailment of expenditures, much
of the work which had hitherto been handled by the sales organizations in the districts was absorbed, beginning July 1, 1921, by the
Federal reserve banks in their capacity as fiscal agents of the Government. ° As a consequence it has been possible to reduce considerably the size of the savings organizations in the districts. A corresponding reduction has been made in the organization of the Savings
Diyision in the Treasury, with the result that the organization both
in Washington and in the field is now on a skeleton basis. These
changes have been in accordance with the general policy of the reduction of expenditures by the Federal "Government.




72

REPORT ON THE FINANCES.

The work of the Savings Division during the fiscal year 1921, as
in 1920, has been three-fold: (1) To develop and protect the secondary market for all war issues of Government securities, (2) to
sell Government savings securities, (3) to make permanent the
habits of regular saving and investment in United States Government savings securities. In carrying out these objects the postal
sj^stem has been the chief agency for the sale of Government savings securities. I n its effort to create a market for these securities
the Savings Division has conducted a general savings campaign,
working through such organizations as labor groups, industries,
schools, women's clubs, fraternal societies, and the press. The details of the activities of the organizations with which the Treasury
has worked in promoting its savings operations follow :
1. Labor groups and-industries. The importance of "saving and
investment in Government securities has been kept before the great
bodies of employees throughout the country through savings' associations and other savings plans in industries, in the development of
which the Savings Division has actively ^participated. Leaders of
many industrial organizations have indicated by their cooperation
a keen interest ih the Government savings program.
2. Schools. In its activities with the schools the division has
encouraged the establishment of thrift instruction as a part of the
national educational system, the practical application of thrift principles b}^ students in their school work and the operation of a
schools savings system as a method of saving money for investinent
in Government savings securities. As indicated in the last annual report, the National Education Association in convention at
Salt Lake City in July, 1920, appointed a committee of State superintendents to confer with officials of the Saving's Division to consider
and report on the place of thrift instruction in the American schools.
The committee after exhaustive investigation came to the conclusions
embodied in the report set forth below:
KEPORT ON THKTFT EDUCATION.

Modern education must include thrift instruction if it is to be fully
educative.
American education is rapidly forsaking a theoretical attitude and is becoming a practical instrument for eflicient living. Ability to succeed financially is
essential to a well-rounded life. A good citizen is first of all self-sustaining;
The first civic duty, of the individual is self-support and the capacity to save
something for his own financial comforts, through which less fortunate individuals may be helped and the community enriched. Instruction in simple
economic principles and project practice in thrift are vitally needed in the
schools because the prevalent extravagance and waste in American life threaten
to undermine the economic independence and civic virtue of American citizenship. Flabits of popular saving will create ^universal capital, develop financial
independence, and tend to a more even distribution of wealth.




SECRETARY OF THE TREASURY.

,

•

73

The school is the most fundamental and logical place through which to disseminate such practical and fundamental knowledge as is necessary to the welfare of all the people. Therefore—
AVe recommend that thrift education be made a part of the course of study in
all school systems, and a part of the regular instruction in all schools, either
as a' separate course, or correlated with kindred • subjects. The method of
providing this instruction should be left to the State and local school, administration.
We recommend that the field' of instruction in thrift be limited to thrift in
time, mone5^ and material, fn order to avoid a duplication of the work now^
being done through other subjects in the curriculum, or by agencies outside
of the school.
•
'
We recommend careful instruction in simple economic principles as they
pertain to—
1. Work.
2. Production.
3. Systematic saving, wise spending, and careful investment of money.
4. Judicious use of time and materials.
5. A broader understanding of financial institutions and financial practices.
We recommend project practice in thrift as a method of practicalizing the
principles which are taught. Project work has demonstrated its efliciency in
many lines of education, and is absolutely essential in connection with the
teaching of thrift.
We recommend that definite courses in the elementary principles of practical
economics be provided in the upper grammar grades, and that a more extended
study df practical finance as applied to Government fiscal operations, banking,
life insurance, and the like, should be given in connection with a regular course
in economics in the high school.
As a method of furthering the practice of saving money and of applying the
principles of safe investment, school savings systems, utilizing Government savings securities and savings bank facilities, should be worked out. It is not
enough that students should merely be encouraged to save money. They should
be given a practical opportunity in the schools to invest their savings.
We recommend cordial cooperation with the Savings Division of the United
States Treasury, the American Bankers' Association, the Parent-Teachers Association, and other organizations qualified to help in this work.
We suggest that the various school publishing companies look into this new
subject of education with a view of recasting certain textbooks on civics, economics, history, arithmetic, and other subjects with which thrift education may
be correlated to the end that there be included in these texts practical material
on thrift and the basic principles of economics, and furthermore that these publishing companies consider the question of preparing suitable textbooks on these
subjects for use of the public schools, if the investigation and assessment of the
publishing houses themselves reveal a distinct need for such texts. In the
meantime material and suggestions for study already prepared by the Savings
Division of the Treasury Department, the American Bankers' Association, and
similar organizations are readily available and can be made most useful. Some
recent textbooks on civics and economics also contain helpful chapters on thrift.
It is the opinion of the committee that thrift education has come into the
" American school system to stay; that henceforth it is not to be sought as a
mere by-product qf educational processes, but will take its place with the other
standard subjects in the school as a great objective of education.




74

REPORT ON THE Flls^ANCES.

We therefore commend the new thrift education to State superintendents of
public instruction and urge its prompt adoption by all the State and local educational systems of the United States.
We appeal for this enrichment of the course of study through thrift instruction on the ground that it is an imperative educational need and a sound educational policy. If the American school is to prepare its students for the practical responsibilities of life it must assume the task of teaching the problems
of life and of giving the instruction and the experience necessary to fit young
people for the business of living.

3. Fraternal societies have assisted in the furtherance of the savings-program through the distribution of literature provided hy the
Savings Division and in other helpful ways. Many fraternal organizations have also invested their surplus lodge funds in Government
savings securities.
. 4. Women's clubs. The prominent women's organizations of the
country have continued their support of the Treasury savings program and have endeavored to interest their membership in the purchase qf Government securities. Many women's clubs are making
practical questions of thrift a feature of their regular club meetings
and there is an increasing tendency among women to study practical
economic subjects, with" a view of becoming more familiar with
financial questions, particularly questions of investment.
5. Publicity. The press has bjeen most liberal in the contribution
of space for carrying information relative to Government securities.
Daily and weekly newspapers, labor papers, trade and technical
journals, house organs, fraternal publications, farm journals and educational magazines have utilized from time to time articles supplied
by the division. In reaching the foreign-speaking population of the
United States, the loreign:language newspapers have proved a convenient and useful medium.
The Clip Sheet, the only regular monthly publication of the division, was continued during 1921 along the same general lines as in
1920, carrying news items and editorials from other publications and
original articles on Liberty bonds. Government savings securities
and on the general question of saving, and discouraging the investment in securities of a speculative character. This clip sheet is sent
to a selected list of publications and the material contained therein
has been utilized most generously. The division also issues from time
to time, as conditions warrant, appropriate posters descriptive of
Government savings securities.
Savings securities for 1921.
I n addition to the securities issued in 1920 and comprising the following;—thrift stamps, 25 cents, noninterest bearing; war-savings
stamps, $5 maturity value, and war-savings certificates, with spaces
for 20 war-savings stainps; Treasury savings certificates, with ma


Sl^XJRETARY OF THE TREASURY.

75

turity value of $100 and $1,000—there were issued during the past
' year the following new securities: Treasury savings stamps, $1 noninterest bearing, with Treasury savings cards for affixing Treasury
savings stamps; and Treasury savings certificates with maturity value
of $25. Announcement of these issues was made in the following
statement of the Secretary of the Treasury, dated December 29,1920:
The Treasury is distributing circulars announcing the issue of the 1921
Treasury savings securities, which will he on sale by the first of the year at
post offices and other agencies throughout the country, including banks and
trust companies. It is anticipated that during the coming year the 1921
securities will be purchased in large volume and that the Government's movement for thrift, savings, and investment in Government securities will continue
to show good results.
The 1921 securities consist of the 2.5-cent thrift stamp which bears no
interest and is used to evidence payments on account of war savings stamps
and certificates, the $1 Treasury savings stamp which bears no interest
and is used to evidence payments on account of war savings stamps and
Treasury savings certificates, the $5 war savings stamp, and the registered
Treasury savings certificates in denominations of $25, $100, and $1,000
(maturity value). As in previous years, the issue price of ttie war savings
stamp is $4.12 in January, and increases 1 cent a month to $4.23 in December.
The issue price of the $25 certificate is $20.60 in January, and increases at the
rate of 5 cents a month to $21.15 in December, and the issue price of the $100
certificate is $82.40 in January and increases at the rate of 20 cents a month
to $84.60 in December. The $1,000 certificate wiU be sold for $824 in January
and the price Increases at the rate of $2 a month to $846 in December.
The 1921 securities will be substantially the same in terms and conditions
as those of the 1920 issue, with the addition of the $1 Treasury savings stamp,
and the $25 Treasury savings certificate. The $1 Treasury savings stamp will
be bright red in color, imprinted on a green tint, and will bear the portrait of
Alexander Hamilton, the first Secretary of the Treasury. It is intended primarily for accumulation on Treasury savings cards in lots of 20 stamps, on
account of the purchase price of a $25 Treasury savings certificate.
As in 1920, war savings certificates of.the 1921 series bearing the necessary
complement of war savings stamps may be exchanged for registered Treasury
saving certificates, series of 1921, in the $25, $100, and $1,000 denominations.
Provision is also made for the exchange during i921 of war savings certificates of the 1918, 1919, and 1920 series for Treasury savings certificates of the
same series at Federal reserve banks and the Treasury Department, exchanges
of registered certificates to be made through the post office of registration.
Owners of war savings certificates who desire the protection of registration
are urged to exchange their war savings certificates for a Treasury savings
certificate, rather than to seek registration of the war savings certificate at a
post office. In addition to its other advantages, the Treasury savings certificate gives the benefit of central registration at the Treasury and provision for
direct payment by the Treasury. The latter provision wall be of advantage
and facilitate payment in case of change of residence, since a registered war
savings certificate can be redeemed only at the post office at which it was
registered.
The new Treasury savings securities offered for 1921 supply a $1 unit for
saving and a registered Government security in the $25 denomination, which




76

REPORT ON THE FINANCES.

can be conveniently purchased through the accumulation of the $1 Treasury
savings stamps. More important' still, the new securities complete a most
attractive line of Government savings securities, the $1 stamp and the $25,
$100, and $1,000 registered Treasury savings certificates, and thus place the
Treasury savings movement on a solid peace-time basis.

The thrift stamp used in 1921 was the same as that used in prior
years. The 1921 war savings stamps and certificates were identical in
terms with those of 1920, except that they mature on January 1,1926,
instead of January 1,1925. The 1921 stamps were larger in size than
the issue of the previous year, orange in color, imprinted on a green
tint, and bear the portrait head of Lincoln. The new Treasury savings stamp of the $1 denomination is bright red in color, imprinted
on a green tint, and bears the portrait head of Alexander Hamilton.
The new $25 Treasury savings certificate is of the same general design as those of the $100 and $1,000 denomination but of a different
color. All of these Treasury savings certificates mature on January
1, 1926. The terms of the 1921 issue appear in Department Circular
No. 215, dated December 15, 1920, attached hereto as Exhibit 55,
page 297.. Further regulations governing the issue and sale of war
savings stamps and certificates and Treasury savings stamps and
certificates during 1921 are contained in Department Circular No.
217, dated December 15, 1920, as to exchanges; and No. 216, dated
December 15, 1920, as to agencies, which are attached as Exhibits
57 and 56, pages 316 and 308. T h e regulations governing the surrender of 1920 Government savings securities were set forth in
Department Circular No. 220, dated December 20, 1920, and attached
as Exhibit 58, page 323.
The cash receipts from the sale of stamps and Treasury savings
certificates, using the figures in the daily Treasury statement for the
last day of each month from the first month of their issue to October
31, 1921, with redemptions by years, have been as follows:
Receipts.
1917—December
1918—January
February
March
^__
April
:__
May
June
- July
August
September
October
November
Oecember




$10, 236, 451. 32
24, 559, 722.15
41,148, 244. 22
53, 967, 864. 49
60, 972, 984.12
57, 956, 640.12
58, 250, 485. 00
211, 417, 942. 61
129, 044, 200. 62
97, 614, 581. 48
89, 084, 097. 31
73, 689, 846. 00
63, 970, 813. 47

1 19n -January
February
March
Aprn
May
i—
June
July
August
September
October
November
December

$70, 996, 041.14
15, 816, 539. 27
10,143, 081. 68
9,572,728.48
6, 558,198. 33
5, 269, 535. 51
5,176, 865.12
6, 201,164. 07
6,111,944.78
7, 316, 467. 60
8,020,436.67
9,124, 292.13

SECRETARY UF I'HE FREASUKY.
L920—January
February
March
April
:
May
June
July
August ^
September ___
October-. November
December-:—

$8, 987, 462. 59
5, 221, 213. 48
6/063,359.22
4,815,437.69
3, 552, 962.19
3,107, 909. 72
2, 359, 274. 53
2, 231, 509. 77
1, 814, 705. 89
1, 889, 750. 48
1, 912, 967. 05
1, 934, 452. 46

1921-—January
February
MarchApril
May
June
July
August
September ___
October—

77
$2, 646, 396. 88
3, 324,1Q4. 22
2,838,416.58
2, 471, 904. 05
1, 682, 606. 72
1, 481, 271. 98
1, 403,106. 07
1, 321,198. 52
1, 083, 602.12
1, 209, 074. 50

•

Total

1,195, 573, 914. 40

Redem ptions
Cotal from beginning of campaign to Se pt. 30, 1921____
Series as follows:
1918
1919
—
:
1920
.
1921
——.
Thrift stamps, unclassified

- $523,031,856.82
462, 7.52, 905. 02
42, 604, 882. 62
14, 868, 727. 23
2, 802, 819. 45
2, 522. 50

During the first six months of the fiscal year there was a general
decline in the sale of Government savings securities, but considerably increased sales during the early part of the calendar year 1921
evidenced a revival of public interest in the subject of savings and
investment in these securities. Conditions throughout the country
for the past few months have adversely affected sales, but the Treasury feels that the tendency toward lower interest rates on commercial
obligations, the appreciation of Liberty bonds and Victory notes,
and the general sentiment for thrift throughout the country should
tend to restore' interest and to increase the sale of Government
savings securities in the near future.
Savings securities for 1922.
During the calendar year 1922 the Treasury Department will continue to issue Treasury savings certificates in the denominations of
$25, $100, and $1,000, maturity value, but on a new basis, with a
, fixed issue price at the rate of $80 for a $100 certificate, or at the
rate of ^ , per cent compounded semiannually. The $1 Treasury
savings stamp, first issued in 1921, will be continued.
- For some time past the Secretary of the Treasuiy and the Postmaster General haA'C been developing means of coordinating the savings operations of the Treasury and of the Post Office Departments.
Through these conference^ a unified Government savings program
has been eff'ected, with the result that during 1922 postal savings will
be advanced for the deposit of savings and Treasury savings se- '
curities for investment. This program will be promoted jointly




78

REPORT ON T H E FINANCES.

by the savings organizations of both departments. Pursuant to this
plan, the Treasury Department will discontinue, at the close of the
calendar year 1921, the issuance of the 25-cent thrift stamp and the
$5 war savings stamp, on the ground that the 10-cent postal savings
'stamp, the $1 Treasury savings stamp, and postal savings deposits
will provide adequate means of saving money in small installments,
while the Treasury savings certificates above referred to will provide means of investment.
The new $25 Treasury savings certificate will bear the portrait
head of Eoosevelt; the $100 certificate that of Washingtoij; and the
$1,000 certificate that of Lincoln. These certificates will be issued at a
flat price, instead of at prices varying monthly as in previous years.
They will mature five years from date of issue. The terms of the
issues for 1922 will appear in detail in formal Treasury Department
announcements to be issued at a later date.
RAILROADS.

Federal control of the railroads terminated at 12.01 a. m. March 1,
1920. From that date to November 15, 1921, inclusive, the Treasury
has made payments under the Transportation act, 1920, approved
February 28, 1920, as amended, on account of reimbursement of
deficits to short-line railroads, the. six months' guaranty, and new
loans to railroads, aggregating $693,126,350.49. These payments
have been made in pursuance of certificates received from the Interstate Commerce Commission, under the following sections:
Section 204, for the reimbursement of deficits during Federal
control, including p a r t i a l payments under the act approved
Feb. 26, 1921
i
_•___'
_'__ $3,190, 369. 73
Section 209, in respect to the g u a r a n t y therein provided, including p a r t i a l payments under the act approved Feb. 26,
1921
430, 468. 763. 76
Section 210, for loans from the revolving fund of $300,000,000
therein provided
i_-_ 259, 467, 217. 00
Total

-

— 693,126, 350. 49

Copies of the above sections, as amended, are attached as Exhibit
29, page 215.
Section 20Jf.
In response to the Treasury's inquiry as to the estimated amounts
payable under section 204 of the Transportation act, the Interstate
Commerce Commission has stated as follows:




SECRETARY OF THE TREASURY.

79

Estimate of whole amount payable under the provisions of
section 204
$11, 079,^799. 84
Amount certified for payment to and including Oct. 31, 1921
3,190, 369. 73
Estimate of balance payable to carriers—
•_,
Of which an estimate is made of traffic balances and other
indebtedness due the Director General of Railroads in the
amount of
———

7, 889, 430.11
3, 203, 062.19

Leaving a net balance estimated as payable to carriers
under this section of—
•--

4, 686, 367. 92

The Secretary of the Treasury in making payments under this
section is required, upon the request of the President, to deduct from
the amount certified to be due the carrier the amount certified to
be due from the carrier, to the President (as operator of the transportation S37^stems under Federal control). A statement showing
the amounts of partial and final payments, respectively, to November 15, 1921, inclusive, made to carriers under this section after
making such deductions, and the amounts of the deductions, is
attached as Exhibit 30, page 222.
'

.

Section 209.

I n response to the Treasury's inquiry as to the estimated amount
necessary to make good the guaranty provided by section 209 of the
Transportation act, the Interstate Commerce Commission has stated
as follows: .
Estimate of the whole amount payable under the provisions
of section 209 of the transportation act, 1920
$535,936,898.90
Of this amount there has been certified for payment under
section 209(h) and (i) and section 209(g) to and including
Oct. 31, 1921, an amount of
430,520,307.37
Leaving a balance estimated as payable to carriers under
this section of

105,416,591.53

Paragraphs (h) and (i) of section 209 authorize the commission
to certif}^ advances to be made to carriers during the guaranty period,
(the six months beginning Mar. 1, 1920), on account of the sum
estimated to be necessary to make good the guaranty. In a decision,
dated October 7, 1920, set forth in the last annual report at pages
162 to 165, the Comptroller of the Treasury ruled that the Secretary
of the Treasury was not authorized under the statute to make payment on such a certificate unless it was based on an application filed
with the commission prior to September 1, 1920. In the same decision the comptroller ruled that the Secretary of the Treasury was
not authorized under the act to make partial pa37ments on the guaranty (as distinguished from such .advances). On November 29,
1920, the Grand Trunk Western Eailway Company filed a petition in




80

REPORT ON T H E FINANCES.

the Supreme Court of the District of Columbia for a writ of mandamus directing the Secretary of the Treasury to draw a warrant in
its favor for the amount of a certificate for such a partial payment.
In a decision, dated December 31, 1920, the court declined to grant
the writ, holding that partial payments on the guaranty were
not contemplated or authorized by the statute. Congress, on February 26, 1921, with a view to remedying this situation, enacted
an amendment to the Transportation act, 1920, as amended, by adding after section 211 a new section designated as section 212, which
provides that in making certifications under section 204 or section
209, the commission, if not at the time able finall}' to determine the
whole amount due under such section to a carrier or the American
Eailway Express Company, may make its certificate for any amount
definitely ascertained by it to be due, and may thereafter in the same
manner make further certificates, until the whole amount due has
been certified. Since the enactment of this amendment, known as
the Winslow Act, and up to November 15, 1921, inclusive, the. Treasury has made partial payments under section 204 in the amount of
$1,815,841.15, and under section 209 in the amount of $165,827,775.05.
A statement showing the amounts of advances, partial payments,
and final payments,'respectively, to November 15, 1921, inclusive,
made to carriers under section 209 is attached as Exhibit 31, page 223.
Section 210.
Paragraph (e) of this section appropriates the sum of $300,000,000
to be used as a revolving fund for the purpose of making the loans
provided for therein and for paying certain final judgments, decrees, '
and awards rendered against the Director General of Eailroads. To
November 15, 1921, inclusive, there has been paid out of this fund
$259,467,217 for such loans, and $6,000,000 has been advanced to the
Director General of Eailroads for payment of such final judgments,
etc., a total of $265,467,217. Eeceipts on account of the fund aggregated on November 15, 1921, $30,053,901.40, representing $21,259,033.33 for repayments of principal on said loans and $8,794,868.07
for interest collected thereon. As a result of the above payments
and receipts the balance of the fund at the close of business on November 15, 1921, amounted to $64,586,684.40.
A statement showing the amounts of loans to November 15, 1921,,
inclusive, made to carriers under section 210, 'and the amounts of repayments, is attached as Exhibit 32, page 227.
DISCONTINUANCE OF THE SUBTREASURIES.

Between October 25, 1920, and February 10, 1921, the nine United
States subtreasuries were discontinued in accordance with the legis-




SECRETARY OF THE TREASURY.

81

lative, executive, and judicial appropriation act approved May 29,
1920. Many important functions of the subtreasuries had already
been intrusted to the Federal reserve banks, as depositaries and
fiscal agents of the United States, and as the subtreasuries were discontinued their remaining functions were transferred to the Treasurer of the TJnited States, the mints and assay offices, and the Federal reserve banks and branches. The Treasury Department issued
the following public statement on February 14, 1921, to announce
the final discontinuance of the subtreasuries:
In accordance with the legislative, executive, and judicial appropriation act,
approved May 29, 1920, which authorized the Secretary of the Treasury to
discontinue the subtreasuries of the United States on July 1, 1921, or at such
earlier dates as he might deem advisable, the Secretary of the Treasury announces that the subtreasuries have all been discontinued in the following
order:
•
Boston
Chicago
N e w York

:

Oct. 25, 1920
Nov. 3, 1920
— D e c . 6, 1920

San Francisco
—J
Dec. 20, 1920
New Orleans
Jan. 5, 1921
St. Louis
Jan. 8, 1921
Baltimore
Jan. 14, 1921
Philadelphia
'
Feb. 3, 1921
Cincinnati
-Feb. 10, 1921,
As provided in the statute, the duties and functions performed by the subtreasuries have been transferred to the Treasurer of the United States, the
mints and assay offices, and to Federal reserve banks and branches.
The closing of the subtreasuries and the transfer of their duties and functions
have been effected without interruption to business and without interference
with the financial operations of the Government, and it is believed that the
'Change will result in substantial benefit to the banks and the general public
•and in better distribution of coin and currency throughout the country. Moreover, a material economy has been effected, not only by the reduction in operating expenses effected by abolishing the subtreasury establishments but also by
the elimination of the necessity of keeping with the assistant treasurers the
working supplies of coin and currency required to enable them to perform their
functions, amounting in the aggregate to about $25,000,000.

The ofiicial circulars by which the several subtreasuries Avere formally discontinued appear as Exhibits 60 to 66 to this report on
pages 333 to 339.
The passing of these institutions marked the final disappearance
of the so-called Independent Treasury system, which had been established 7.5 yeaTS ago for the purpose of carrying on the banking and
fiscal activities of the Government. I t dated back to 1846, a time
when the irresponsible character of banking institutions made it
necessary for the Government to devise some means for safe-keeping
and handling its own funds. Prior to that time the Government's
policy in this regard had not been uniform. Until the establisliment
of the First United States Bank public money was left in the hands
70073—FI 1921




6

82

REPORT ON T H E FINANCES.

of the collectors until it was needed. During the period of the First
United States Bank, 1791-1811, and the greater part of the period
of the Second United States Bank, 1817-1833, these banks with their
branches were the principal depositaries. Between 1811-1817, and
again between 1833-1846, State banks were used as Government depositaries. Financial disturbances, as well as banking and currency
difficulties, during the latter period led to executive recommendations
in favor of an independent treasury as early as 1837. The first subtreasury law was passed in 1840, .but it was repealed the following
year. The independent treasury system was finally established in
1846, after another period of unsatisfactory experience with State
banks. The act establishing the subtreasuries contem23lated and
temporarily accomplished the complete separation of the Government from the banks. The Government for a time became its own
banker; it made collections of revenue, handled its disbursements and
transfers, and provided for the safe-keeping of its funds without
making use of banking institutions. During the early history of
the independent treasury it performed a most important service along
these lines. Safety of Government funds was the primary purpose
back of its establishment, and it not^ only met this requirement but
also had a stabilizing influence on the currency sj^stem.
The Treasury continued to operate on substantially this independent basis until 1861, when, at the outbreak of the Civil War, the
Secretary of the Treasury called upon the banks to assist in placing
a Government loan. Two years afterwards, in 1863, the nationalbanking system was established, and national banks began to be
used as depositaries and financial agents of the I Government to
supplement the-subtreasuries as keepers of public funds. As the
national-banking system developed the independent treasury tended
more and more to disappear and the Government's relations with the
banks were multiplied. Then, in 1913, came the Federal Eeserve Act,
under which the Federal reserve banks were established, and authorize^d, when directed by the Secretary of the Treasury, to act as depositaries and fiscal agents of the United States. Since that time the
Federal Eeserve System has become so thoroughly established that not
only were the subtreasuries no longer needed by the Treasury, in connection with its fiscal operations but the Federal reserve banks, were
already performing many of the functions and duties previously performed only by the subtreasuries. I t was natural that the next step
should be the final discontinuance of the subtreasury system.
Upon the discontinuance of each subtreasury the assets held therein
were checked and examined by a Treasury committee aiid transferred
to the Treasurer of the United States at Washington, to the mints
and assay ofiices, and to the Federal reserve bank or branch Federal
reserve bank located in the respective subtreasury city. I t was found




83

SECRETARY OF T H E TREASURY.

in each case to be feasible to transfer moneys and bullion constitute
ing part of the trust funds of the Treasury from the subtreasuries to
other Treasury offices, and no such transfers had to be made to the
Federal reserve banks.
Prior to the discontinuance of the subtreasuries the Secretary had
issued under date of August 30, 1920, instructions with respect to the
exchange, replacement, and redemption of United States paper currency through the Federal reserve banks, and, under date of October
19, 1920, instructions with respect to exchange and redemption of
United States coin, and the performance by Federal reserve banks of
other duties and functions theretofore performed by the subtreasuries. The dates upon which the Federal reserve* banks and their
branches have assumed functions under these instructions are as
follows:
Bank.
1. Boston
2. NewYork
Buffalo branch
3. Philadelphia
4. Cleveland
Cincinnati brarich
_..
Pittsburgh branch—'..
5. Richmond
Baltimore branch
6. Atlanta
.New Orleans branch—
JacksonviUe branch
Birmingham b r a n c h —
Nashville branch
7 Chicago
Detroit branch
8. St. Louis
• Louisville branch
Memphis branch
Little Rock branch
9. Minneapolis
Helena branch
10. Kansas City...
Omaha branch
Denver branch
Oklahoma City branch.
11. DaUas..:
El Paso branch
Houston branch
12. San Francisco
Los Angeles branch
Portland branch
Salt Lake City branch..
Seattle branch
Spokane branch

• Currency.
Oct.
Nov.
Nov.
Nov.
Mar.
Feb.
Apr.

1,1920
1,1920
22,1920
18,1920
2,1921
10,1921
4,1921

Jan. 14,1921
June 10,1921
Jan. 5,1921
June 10,1921
.....do
do
Nov. 1,1920
Nov. 13,1920
Nov. 1,1920
Dec. 23,1920
do
do
Dec. 1,1920
Mar. 1,1921
Nov. 1,1920
Oct. 29,1921

do
do
Mar. 22,1921
Dec. 21,1920
Apr. 1,1921
db
do
do
do

Coin.
Oct.
Dec.
Nov.
Feb.
May
Feb.

25,1920
7,1920
18, 1921
3,1921
19,1921
10,1921

Jan. 14,1921
June 10,1921
Jan. 5,1921
June 10,1921

Do.
Do.

Nov.
Nov.
Jan.
Jan.

3,1920
18, 1921
8,1921
26,1921

Do.
Do.
Feb. • 1,1921
Mar. 1,1921
Dec. 20,1920
Oct. 29,1921
Do.
Do.
Mar. 22,1921
Dec. 21,1920

Owing to the complete preparations made by the'Treasury Department, the closing of the subtreasuries and the transfer of their
duties and functions were effected without interruption to business
and without interference with the financial operations of the Government. The result has been, on the contrary, the extension of improved currency and coin facilities to the country, including particularly many sections which were inadequately served by the subtreasuries. The location and banking. connections of the Federal
reserve banks and their branches afford a more convenient and natural method for the equitable distribution of paper currency fit for



84

REPORT ON T H E FINANCES. ^

circulation than it was possible to secure through the subtreasuries,
and there has already been a decided improvement throughout the
United States not only with respect to the condition of the paper
currency but with respect to.the supply of notes of small denominations.
A material economy has resulted, not only by the reduction in
operating expenses effected by abolishing the subtreasury establishments, but also by the elimination of the necessity of keeping with
the Assistant Treasurers working supplies of currency and coin required to enable them to perform their functions, amounting in the
aggregate to approximately $25,000,000. Nor has it been necessary
to increase the balances of- Government funds held by the Federal
reserve banks by reason of their assumption of subtreasury functions.
Those employees of the subtreasuries who were not eligible for
retirement or were not transferred to other Government offices were
taken over b}^ the Federal reserve banks, at least under temporary
employment.
DEPOSITS OF GOVEIJN?AlENT F U N D S .

I n addition to the Treasurer of the United States, the depositary
system of the Government during the fiscal year 1921 comprised
the Federal reserve banks and branches (which also act as fiscal
agents of the United States), Federal land banks, national-bank depositaries, both general and limited, special depositaries, foreign depositaries, and insular depositaries, including the treasurer of the
Philippine Islands. The number of such depositaries by classes at
the end of the fiscal year 1921 is indicated in the abstract of repoit
of the Division of Deposits on page 476.
The fiscal year 1921 was largely one of adjustment so far as concerns deposits of Government funds. During the preceding fiscal
year the Treasury had initiated new and definite policies with regard
to balances with general national bank depositaries of public moneys,
and these policies have been further developed and applied during
the year under review. With the close of the war there were no
surplus Government funds to deposit with the banks and the Government was itself a heavy borrower in order to meet its current
requirements. I n these circumstances the depositary policy of the
Government necessarily aimed to obtain the greatest possible use
of all public funds, in order that the Treasury's borrowings might
be kept at the lowest possible point. The Treasury, therefore,
adopted the policy of designating and maintaining balances with
general national-bank depositaries only at points where actually
necessary for the performance of some essential Government business, and of limiting such balances to the minimum ones required to
provide for the amount and character of the Government business
transacted. The establishment of this definite policy necessitated



SECRETARY OF THE TREASURY.

85

a complete examination and revision of all Treasury balances carried
with depositary banks. During the fiscal year ended June 30,
1920, substantial reductions were accordingly made in the number
of general national-bank depositaries of public mone3^s, as well as in
the amount of the balances maintained therewith, which resulted in
substantial savings to the Treasury. During the fiscal year 1921,,
two complete analyses of the accounts of approximately 550 depositary banks have been made. As a result of these analyses the
Treasury was able during the fiscal year 1921 to discontinue 86 gen-.
eral national-bank depositaries, and to reduce the fixed balances of
178 such depositaries. During the same period fixed balances were
increased in 49 general national-bank depositaries and 32 additional.
general depositaries were designated. The total amount held by
general national-bank depositaries to the credit of the Treasurer
of the United States was reduced during the year from $12,644,214.62,
as shown by the daily Treasury statement of June 30, 1920, to
$9,497,962, as shown by the daily Treasury statement of June 30,
1921.
*
' .
Examination of the accounts of general national-bank depositaries
during the year indicated that many such depositaries were maintained solely for the purpose of receiving deposits of surplus moneyqrder funds from postmasters. The balances maintained with these
depositaries were, in the aggregate, substantial in amount. I t was
found possible to make arrangements for the deposit of surplus
money-order funds in these cases with other general national-bank
depositaries and with Federal reserve banks, and thus to discontinue
on July 15, 1921, approximately 230 general national-bank depositaries which had previously been maintained solely for the purpose of
receiving deposits of surplus money-order funds. This effected a
reduction of approximately $1,000,000 in the total amount of the fixed
balances with general national-bank depositaries and reduced the
number of general national-bank depositaries to 337.
Limited national-bank depositaries are maintained solely for the
purpose of receiving deposits made by the United States courts and
their officers and by postmasters for credit to their ofiicial checking
accounts. Such depositaries are not authorized to receive deposits
for credit to the Treasuirer of the United States. On June 30, 1921,
there were 187 limited national-bank depositaries, and the amount
held by them and general national-bank depositaries to the credit of
Government officers other than the Treasurer of the United States as
shown by the daily Treasury statement of June 30, 1921, was
$11,711,617.73.
Since June 1, 1913, Government depositaries have been required to
pay interest at the rate of 2 per cent per annum on daily balances.
The amounts received from this source, exclusive of special deposi-




86

REPORT ON T H E FINANCES.

taries under the Liberty loan acts, for the past nine fiscal years are
as follows:
19131914
1915
'1916
'1917
1918
1919
1920
1921

i
±

I n t e r e s t on Government deposits.
^
^

_
•
:
L

$122, 218. 89
1, 409, 426. 07
1, 222, 706. 93
791, 671. 45
703, 771. 76
1,134, 569. 09
5, 507, 742. 43
' 1, 865, 975. 76
' 2, ,577, 815. 07

The Treasury's special depositary system was maintained throughout the fiscal year in order to permit banking institutions purchasing
Government securities, as offered from time to time, to make payment for them by credit, thereby retaining the proceeds of such sales
in the form of deposits, until withdrawn from time to time as needed
to meet current disbursements of the Government. Any incorporated
bank or trust company is eligible for designation as such special depositary, in accordance with the provisions of department Circular
No. 92, as amended and supplemented, dated April 17, 1919. At the
close of the fiscal year 1921 there were 9,412 special depositaries,
of which 4,487 were national banks and 4,925 were State banks and
trust companies, holding Government deposits, as shown by the daily
Treasury statement of June 30, 1921, amounting to $393,289,000.
- In accordance with the department's regulations, the special depositaries also pay interest on Government deposits at the rate of
2 per cent per annum. The interest received on these deposits during the fiscal year was $3,512,308.02. The total amount received
from April 24,1917, to June 30, 1921, was $46,892,373.38, as indicated,
by semiannual periods and Federal reserve districts, in the following
statement:
I n t e r e s t collected to J u n e SO, 1921, by F e d e r a l reserve districts, on deposits in
' special depositaries on account of sales of Liberty bonds. Victory notes, Treasu r y notes., and certificates of indebtedness and income and profits t a x payments, under acts of AiJr. 2k, 1911, Sept. 2k, 1917, Apr. k, 1918, Sept. 2k, 1918,
J u l y 9, 1918, and Mar. 3, 1919.
F e d e r a l reserve district.

Boston
New York
Philadelphia
Cleveland
'
Richmond
Atlanta
Chicago
S t . Louis
Minnea:)0.i3
Kansas City
Dallas
S a n Francisco
N e w Orleans b r a n c h .

$5,340.47
338,480. 60
1,044.64
2.52. 06
9,023.53

1,353.62
2,726.51
358,221.43

Total
1 Amended

A p r . 24 t o J u l y 1 t o Dec, J a n . l t o J u n e
J u n e 30,1917
31,1917.
30, 1918.

figures.




S495,044.28
2,418,335.72
2C0,276. 04
290,482.56
81,2.52.94
28,189. 21
300,42S. 59
56,412.34
32', 520. 68
39,634. 27
35,888. 58
137,896. 92
26,332.71
4,142,794

$757,34.5.98
2,486,301.63
557,068.79
803,219. 84
128,860.72
96,086. 74
658,048.19
268,726. 24
168,309.21
150,897. 61
81,191. 52
208,486.34
69,320.38
,423,863.19

J u l y l to Dec.
31,1918.
$1,138,915. 47
6,720,162. 97
1,059,668.15
872,392.10
503. 64
. 109,
144,165.99
974,334. 63
403,488.76
164,790.29
332 145. 49
268' 329. SS
377;421.12
79, 005.33
12,644,323.82

J a n . l to J u n e
30, 1919.
$733, 867. 20
2.968, 858.77
.596, 436. 23
696, 750. 48
242, 735.18
203, 550.98
1,107, 3S9.81
1369, 783. 56
311, 793. 53
309, 106 79
132, 651. 09
590 ,811.02
1,140.55
,3.51.885.19

2 Incomplete and subject to revision.

SECRETARY OF T H E TREASURY.

87

Inlerest collected to J u n e 30, 1921, by Federal reserve districts, etc.—Continued.
F e d e r a l reserve district.

J u l y 1 to Dec, [Jan. 1 t o Junel J u l y 1 t o Dec. J a n . 1 t o J u n e
31, 1919.
30,1921.
30, 1920.
31,1920.
S563, 524.88
3,336, 357.90
529, 102.^1
530, 146.39
555, 390.68
153, 908.04
817, 172.84
264, 058.53
171, 863.85
159, 047.57
182, 127.50
246, 486.13
40, 666.90

$254,689.51
1,887,688.21
171,509.48
352,082.30
140,635.35
82,811.99
355,685.31
100,947.90
104,223.41
95,489.75=
118,843.58
1182,833.46
161,682.62

7,549,854.02

Boston
NewYork-..Philadelphia
Cleveland-.-.
Richmond
Atlanta
Chicago
St. Louis
Minneapolis.-K a n s a s City
,
Dallas
S a n Francisco. - . : —
N e w Orleans b r a n c h .

3,909,122.87

Total
1 Revised

Total.

$131,904.55
837,038.64
123,242.32
98,748.63
29:202.82
17,182.07
159,607.51
45,418.04
19,254.89
49,622.84
15,256.09
97,164.11
23,774.93

$197,098.16
905,079.42
203,114.68
170,999.61
61,321.73
16,.393.10
87,765.18
55,839.57
39,930.85
40,237.12
17,151.75
64,542.38
5,417.03

$4,277,730.50
21,898,303.86
3,441,463.14
3,814,821.91
1,348,903.06
742,540.18
4,469,465.59
1,564,674.94
1,012,686.71
1,176,181.44
851,793.61
1,908,467.99
385,340.45

1,647,417.44

1,864,890.58

46,892,373.38

figures.

During the fiscal year ended June 30, 1921, the Treasury maintained depositaries in France, Great Britain, Italy, Belgium, Canada,
and Plaiti for the use of disbursing officers of the Government, especially of the Army and Navy, and to facilitate payments in foreign
countries. These depositaries were designated under the authority
vested in the Secretary of the Treasury by the act of September 24,
1917, as amended and supplemented.
GOLD.

The heavy imports of gold into the United States during the past
12 months have been a major factor in the improvement of the reserve position and the liquidation of loans of the Federal reserve
banks. The excess of imports of gold over exports between November
1, 1920, and November 1, 1921, was $664,000,000, and the gold holdings of the Federal reserve banks increased during that period by
about $800,000,000. With the exception of approximately $32,500,000.
exported to Japan in November and December, 1920, no considerable
exports of gold have occurred since November 1, 1920,, while large
amounts have been imported from the following countries: United
Kingdom (England), approximately $239,000,000; France, $201,000,000; Sweden, $61,000,000; British India, $31,000,000; Canada,
$33,000,000. The imports and exports during the calendar year 1921,
up to October 31, distributed by countries, are given in the following
statement, issued by the Federal Eeserve Board:




88

REPORT ON THE FINANCES.

Gold imports into and exports from the United States distt^ibuted by counti^ies^
Imports
Exports
Jan. 1 to
Jan. 1 to
Oct. 31,1921, Oct. 31, 1921..
Austria
Belgium
".
Denmark
France
Germany
Greece
:
Italy
Malta
Netherlands
Norway
Poland and Danzig
Portugal
Russia in Europe
Spain
Sweden
Switzerland
Turkey in Europe
United Kingdom—England.
Total EuropeBermuda
Canada
Costa Rica
Guatemala.
Honduras
• Nicaragua
Panama
Salvador
Mexico
Cuba..---British West Indies
Virgin Islands of United States-.
Dominican Republic
Dutch West Indies
Total North America..
Argentina-.
Bolivia
Brazil
Chile
,
Colombia - EcuadorBritish Guiana..
Dutch Guiana-Peru..
Uruguay
Venezuela-i
Total S.outh America-,
China - -;
Chosen
British India
Dutch East Indies-French East Indies..
Greece in Asia
.Hongkong
Japan-.--'
Palestine and SyriaTurkey in Asia
Total Asia.
Austraha
New Zealand
Tahiti
Philippine Islands...
Abyssinia
British West Africa-.
British South AfricaEgypt
Portuguese Africa
Total, all countries.




$9,000
3,760,711
3,411,203
•172,586,867
16,962,608
715,745
207,953
614,751
• 18,749,085
1,534,985
400
23,040
85,000
3,292,453
59,130,340
572,957
484,633
169,954,721
452,096,452
103,290
32,166,404
768,459
511,909
200,760
692,113
2,384,714
788,437
4,674,786
362,637
561,413
150,000
25,000
5,392,107
48,782,029
1,059,237
5,031
93,122
289,400
10,212,329
643,960
135,583
60,132
1,181,337
6,127,810
1,135,980
.20,943,901
17,611,467
4,860
30,878,16^
1,025,79S
6,005,892
1,195,204
5,660,825
2,208,234
881,384
1,448,793
66,920,625

$200;
2,643,013.

2,643,213:
2,450,842:

5,350,1041
250,844-;.

8,051,790.'

24,300'

24,300'«

1,179, OOOOO, 000'
9,163,755.

10,402,755-

11,703,027
2,549,305
1,082,596
21,965
13,250
51,823
4,410,980
562,073
609,138,026

21,122,358-

89

SECRETARY OF THE TREASURY.

The following table gives in millions of dollars the monetary stock
of gold in the country on the first day of each month and the gold
holdings of the Federal reserve banks about the first of each month
since. November, 1920: .

Date.

1920.

November
December
January
February
March
April
May
Julie...--..
July
August
September
October
November-..'.

Stock of . Total gold
monetary
reserves
gold in tlie
of the
comitry, in Federal
millions
reserve
of dollars. banks.1

2,002
2,023

1921.
2,0802,112
2,163
2,245
2,343
2, 409
2,478
2,553
2,656
2, 733
2,800

-

^

Per cent increase from November, 1920, to November, 1921

c9.9

This increase in the stock of gold in the country is much greater
than for any previous period of equal length. Since 1914 there have
been two important periods of heavy gold imports, the years 1915,
1916, and early part of 1917, when the allied nations were paying
for war supplies from America, and the past 12 or 15 months. Between these periods there was about a 3^ear, from April, 1919,
through March, 1920, Avhen the United States was liquidating debts
in South America and the F a r East, and during that time there was a
large excess of exports. Therefore the present stock is only about
$383,000,000 above the amount in May, 1917, although it is $766,000,000 higher than in November, 1920. The changes in the monetary stock of gold since 1913 are shown in the following table:

E n d of y e a r -

1913
1914
1915
1916
1917
1918
1919
1920
1921 ( N o v . 1)




.
-

-^

Stock of
monetary
gold
in the
Per cent
United
of 1913.
States, in
millions
of dollars.
1,924
1,816
2,312
2,865
3,040
3,081
2,788
2,785
3,505

100
94
120
149
158
160
145
148
182

90

.

REPORT ON T H E FINANCES.

The figures show that at the present time 80 per cent of the monetary stock of gold in the United States is in possession of the Federal
reserve banks. The gold in the country has gravitated toward the
Federal reserve banks since our entrance into the war in 1917, when
the policy of gold conservation was adopted. During the war period
gold conservation was of vital importance as a protection to the
growing credit structure, and even in peace times gold is inost efficient
when concentrated in the form of bank reserves and for use in
international transactions. With the increased importations of gold,
the liquidation of bank loans, and the general improvement in credit
conditions during the past year, the pressure for the concentration
pf gold no longer exists, but the demand for gold for internal circulation is relatively slight and the increased stock of gold in the country
has naturally been reflected 'in the reserves of the Federal reserve
banks. Neither the Treasury nor the Federal reserve banks maintain any restrictions on gold payments, and gold may be had freely
on demand in exchange for gold obligations.
Gold production.
Due to the unfavorable influence of high prices and consequent
high costs of production on the mining and reduction of gold, there
have been further discussions pf proposals for subsidizing the goldmining industry. A bill has been introduced in the House of Eepresentatives (H. E. 5025) " To provide for the protection of the mon-'
etary gold reserve by the maintenance of the normal gold production
of the United States, by imposing an excise, for revenue and other
purposes, upon all gold used for other than monetary purposes, and
by the payment of a premium to the producers of newly-mined gold,
and providing penalties for the violation thereof." The Treasury
does not approve this bill or other measures for subsidizing the goldmining industry, believing that the problem will ultimately adjust
itself and gold mining become more remunerative as the purchasing
power of the dollar increases. The position of the Treasury with
reference to this question was stated in some detail in a letter dated
September 30, 1921, a copy of which is attached as Exhibit 75, page
376, in reply to a resolution signed by 22 Senators from the Western
States and submitted to the Secretary of the Treasury, requesting an
opinion as to H . E. 5025. To this letter is attached a copy of a letter
from the Secretary of the Treasury to the chairman of the Committee
on Ways and Means, dated May 9,1921, with respect to the same bill.
The production of gold in the United States, as well as in other
countries of the world, is still below prewar figures. This is .true
even of the South African gold fields, notwithstanding the arrange-




'

.

.

SECRETARY OF THE TREASURY.

\) i

ments for sale to the highest bidder of the product, after shipment to
London, by which arrangements producers of that region reap the ben- efits incident to exchange conditions. These benefits have averaged
since January, 1920, according to the June, 1921, report of the Ehodesian Chamber of Mines, more than £1 5s. per ounce above normal,
about 30 per cent. The United States production in 1920 is estimated
at $51,186,900, a reduction from the prior year's output of over
$9,000,000. The industries of the United States are 'estimated to
have consumed in 1920 new gold to the value of about $54,000,000,
approximately $3,000,000 more than the domestic production.
Russian gold.
The Treasury, acting in accordance with the advice of the Department of State, does not accept at United States mints and
assay offices gold known or suspected to be of Soviet origin, but does
regard as free from any suspicion or possibility of Soviet origin
gold which bears the official coinage or mint stamp of recognized"
governments, including for this purpose Germany and Mexico. Privately stamped gold bars are accepted only if accompanied by a
satisfactory certificate of ownership and non-Soviet origin executed
by a responsible bank or banker, or by other satisfactory proof of new
mine production or other facts negativing Soviet" origin.
SILVER.

Silver purchases under the terms of the. Pittman Act, approved
April 23, 1918, have reached a total of approximately 80,000,000
ounces up to November 1,1921, leaving about 128,0.00,000 ounces yetto
be acquired to replace the silver dollars melted under the terms of that
act. The coinage of this bullion is proceeding rapidly, $72,178,000
having been executed to November 1, 1921, at which date the uncoined stock of Pittman Act silver on hand was about 25,000,000
ounces.
^
The total number of silver dollars melted under the terms of the
act of ApriL 23, 1918, was 270,232,722, there having been used for
subsidiary coinage during the past year 111,168 beyond what has previously been reported.
As the new silver dollars become available silver certificates are
issued against them. The issue of these silver certificates permits the
retirement of the Federal reserve bank notes issued at the time
silver certificates were retired in order to make silver dollars available for melting, and also permits the retirement of the certificates
of indebtedness held as security for the Federal reserve bank notes,
thus reducing the public debt and the interest charges thereon.




92

REPORT ON T H E FINANCES.

"

Silver purchases under the act of April 23,1918, by months, follow::
1920—May
June
July
August
September
October
November—
December..
1921—.January-.
February

Ounces.
332, 088
6,168, 505
3, 288, 856
3, 429, 277
3, 815, 733
4, 634, 860
3, 638, 870
4, 599,172
4, 677,188
4, 615, 842

1921—March
Aprn
May
June
July
August
September
October
Total

1

.,

Ounces-...
5,912,0654, 334, 741
6, 836, 500'
-•-— 4, 442, OOO4, 670,119^4, 913, 614
3, 471, 436>
5, 917, 997
79, 698, 863"-

THE MINTS.

The three coinage mints have been operated upon an overtime basis
throughout the entire 37ear. In quantity of coin manufactured, thefiscal year ended June 30, 1921, was the third largest in the history
of the service, the total number of pieces executed being 553,868,492.
The heavy demand for subsidiary coinage extended to the close of
the calendar year 1920. The resumption of coinage of silver dollars,,
which began in February, 1921, after a lapse of 17-years, constituted
the most notable event of the year. This coinage has been entirely
from the'stock of bullion accumulated and still being purchased under
the terms of the Pittman Act approved April 23, 1918, and is beingexecuted pursuant to the express requirements of the statute. The
inint service has made a special effort to accelerate the coinage of
silver dollars in order to convert the silver bullion into standard,
silver dollars with the minimum of dela}^, and thus enable the Treasury to reissue against the newly coined dollars the silver certificates
retired when the silver dollars were broken up and melted in 1918
and the resulting silver bullion sold under the Pittman Act. Silverdollar coinage is likely to continue on a large scale during the. period
of silver repurchases under the statute, and for the time being, therefore, will proba/bly overshadow other coinage. The mints have also
executed important orders for fo'reign coinage, and have now resumed
the coinage of gold on a moderate scale.
During the year under review the coinage mints have been reorganized. New methods of handling bullion and new processes of
coinage have been introduced, and the result has been a marked expansion of coinage capacity and a more economical and efficient administration of the general business of the mint service.
The largest amount of coin and bullion on hand at any period since
the establishment of the mint service is now carried in the coinage
mints and the New York assay office. Transfers of the respective
establishments to new superintendents were effected after a careful




SECRETARY OF THE TREASURY.

93

check proved that all values on hand agreed with the amounts called
for by the records.
The occupancy of the new building for the assay office at New
York was interrupted by the explosion in Wall Street in September,
1920. The restored building was opened to the public for business
•on March 3, 1921.
T H E FEDERAL F A R M LOAN SYSTEM.

I n the last annual report allusion was made to the litigation then
pending Avhich challenged the constitutionality of the farm loan act.
On February 28 of the present year the Supreme Court of the United
States rendered a decision in the case ux^holding the constitutionality
of the act in every respect. The effect of this decision was to establish
the Federal Farm Loan System firmly as a part of our financial
system and to clear away the legal difficulties which had impeded
t h e operation of the system and the sale of land-bank bonds. Shortly
^after the decision of tlie Supreme Court, Congress further amended
the Federal farm loan act and changed the optional call period so
that the banks might issue bonds which could not be callable until
10 years from the date of issue. This amendment was deemed desirable in order to add to the attractiA^eness of the bonds to investors,
-and it is believed that it has proven exceedingly helpful in the sale
of Federal land-bank bonds.
As soon after the Supreme Court decision as conditions permitted
and bonds could be printed and made ready for delivery, a general^
offering of $40,000,000 of 5 per cent bonds was made by the several
federal land banks. The offering was announced on April 18, 1921,
:and, notwithstanding the unfavorable financial conditions at the
time, the sale was entirely successful. Another offering of $60,000,000
»of 5 per cent Federal land-bank bonds was announced on October .3,
1921, and was likewise successful. I n May the Federal land banks
'began the taking of applications and closing of loans, and since then
have gone steadily forward to normal activit}^ Loans have been
closed as follows:'July, $9,204,900; August, $12,506,000; September,
$12,407,400; October, $13,300,200.
The special session of Congress further amended the farm loan act
hy enlarging the depositary provisions authorized by section 32, and
made if'permissible for the Secretary of the Treasury to deposit with'
t h e Federal land banks, in the form of emergency deposits, a sum
^quai to the difference between the combined capital of the banks and
$50,000,000. The purpose of this enactment was to provide temporary
facilities for the Federal land banks when needed between bond
sales. I n anticipation of the October bond sale recourse was had by




94

REPORT ON THE FINANCES.

two of the banks to the'enlarged depositary privilege, and dieposits
were made by the Treasury with these banks in the sum of $3,250,000,
all of which have been repaid from the proceeds of the October bond
sale.
The Federal Farm Loan S37stem seems now to have become thoroughly established in the confidence of investors and in the minds
of agricultural borrowers. Indeed, the demand for loans, OAving
to the general stress among the agricultural interests, has been for
the time being in excess of the supply of funds and in excess of the
physical capacity of the Federal land banks. The system is functioning smoothly, however, and loaning funds to American farmers on
very favorable terms at a rate exceeding $150,000,000 per year, which,
no doubt, exceeds any anticipations as to its service, and would in
normal times f ulty respond to the calls upon It.
I t should be borne in mind that the Federal Farm Loan System
was not designed as an emergency measure, but is a steady-going
and permanent enterprise. I t should be operated accordingl}^, responding, of course, as far as circumstances permit, to extraordinary
conditions, but it must not be asked or permitted to sacrifice its permanent and safe upbuilding to temporary expediency.
Joint-stock la/iid hanks.
The joint-stock land banks, finding that their bonds did not react
to the favorable decision of the Supreme Court to an extent sufficient
to enable them to market 5 per cent bonds, sought an amendment
to the farm loan act authorizing the issuance of bonds bearing a
rate as high as 5J per cent. Legislation to this effect was enacted,
and pursuant to it joint-stock land bank bonds in the sum of
$18,000,000, bearing 5^ per cent interest, have been sold to the public
to October 31, 1921.
F A R M E R S ' SEED-GRAIN LOANS.

The following provision was incorporated in the agricultural appropriation act of 1921, approved May 31, 1920:
Tbat a yield of five bushels or less per acre of wheat on lands owned by those in the drought-stricken regions who borrowed money from the Government of
the United States for the purchase of wheat for seed be, and the same is hereby,
declared to be a failure, and the borrower whose yield was five bushels or less
per acre be, and he is hereby, released from repayment of the amount borrowed
by him from the Government: Provided, That nothing herein shall release the
borrower who signed a guaranty fund agreement and whose crop was not a failure from making the contribution provided for in such agreement, but said
guaranty fund shall be used as stipulated in the agreement to. the settlement of
the loans to those whose crop was a failure.




95

SECRETARY OF THE TREASURY.

Pursuant to this statutory declaration and the provisions of the
circular issued thereunder by the Treasury Department and the Department of Agriculture, entitled " Joint Circular No. 6," dated August 10,1920, prescribing "Eegulations relative to release of farmers'
seed-grain loans for wheat planting in drought-stricken areas," the
Treasury Department, during the past year, has released a large number of loans to farmers whose crops were failures. The releases have
been approved and certified by the several Federal land banks of
Wichita, St. Paul, or Spokane (through which the original loans
were made) and recommended by the Farm Loan Board.
The Treasury has made substantial collections up to date, hoAvever,
on account of repayments of loans not released by the act of May 31,
1920, payments of interest on loans, and contributions to the guaranty
funds.
The following table shows the total number of loans, the total
amount loaned, together with the amount released, the amount of
principal collected, the amount of interest collected, the contributions
to the guaranty funds, and the balance of principal outstanding
uncollected, as of October 10, 1921:
,
Federal land
bank.
Wichita
St. Paul
Spokane

Number
ofloans.

Amount
loaned.

Principal
collected.

Principal Balance of Interest
principal
released. imcollected. collected.

Guaranty
fund.

8,282 $1,891,132.75 $1,365,510.98 $182,127.70 $343,494.07
1,138
67,031.02 187,732.26 103,607.17
358,370.45
6,149 1,951,379.50
. 10,361.03 1,244,128.50 696,889.97

$75,208.79
1,764.88
478.30

$246,391.95
443.20
24.15,

1,442,903.03 1,613,988.46 1,143,991.21

77,451.97

246,859.30

15,569

4,200,882.70

WAR R I S K I N S U R A N C E .

Prior to the beginning of the fiscal year extending from July 1,
1920, to June 30, 1921, serious defects had become manifest in those
provisions of the Avar risk act which provided for the relief of
disabled soldiers and of dependent relatives of those who had
sacrificed their lives in the Nation's cause. Eemedial legislation had
been secured to adjust some of these shortcomings, and authority for
further improvement of service to the World War veterans had
been sought of Congress without definite accomplishment during the
session of Congress which adjourned June 5, 1920. At no time^
however, since the passage of the act which created the Bureau
of War Eisk Insurance had it been faced with graver problems
than those involved in the following two developments, which by
June 30, 1920, had become acute and were pressing for solution.
The first was the lack of suitable property available to the Government for conversion into hospitals and sanatoria to accommodate the unforeseen number of disabled former service men, together
with an appalling inadequacy of the hospital facilities already in
existence and of which use was being made, both as to actual space




96

REPORT ON T H E FINANCES.

accommodation and as to the equipment and environment by which
the World War patient might be given that essential advantage for
recovery, freedom from needless physical, emotional, or mental
strain.
The second problem was the urgent necessity, if the bureau Avas
to afford efficient and expeditious relief for war victims, of a coordination of its functions into a unified agency embracing the Bureau
of War Eisk Insurance, the Federal Board for Vocational Education, and that part of the United States Public Health Service
which had been given charge of the hospitalization of former serAdce
men. These.three agencies had been Avorking in harmony and with
about as close and effective cooperation as was possible under the
law as it stood, 3^et that regime of divided responsibility Avas inherently wrong.
The only solution of these difficulties, it had been growing increasingly apparent, lay in securing a unity of control in the hospitalization, compensation, and restoration of. the disabled service man,
with the executive responsibility vested in one headquarters with
authority so complete and thoroughly coordinated that it could
delegate the carrying out of its policies to units representing all its
threefold functions in the field.
Unremitting effort on the part of the Bureau of War Eisk Insurance to attain immediate relief and an ultimate remedy for these
conditions continued throughout the entire fiscal year 1921.
Reorganization.
On November 29, and again on December 20, 1920, the Director
of the Bureau of War Eisk Insurance had appeared before the Committee on Appropriations of the House of Eepresentatives, urging
an increased appropriation for the establishment of additional
offices in the field. No legislation providing for the physical coordination of the Government's A^eteran activities was secured, hoAvever,
during the last session of the Sixty-sixth «Congress. The Wason
(bill, Avith its liberalizing features, was passed by both the House of
Eepresentatives and the Senate, but it remained unsigned by the
President at the time of adjournment, March 3, 1921. .
Before the new administration Avas a month old, hoAvever, on
March 28, 1921, the President a'ppointed a committee to be summoned to Washington for the purpose of making an inquiry " into
the administration of the laws providing for the care of disabled
soldiers."
After consideration this committee. reported to the President under date of April 7, 1921, as follows:




SECRETARY OF THE TREASURY.
The

97

PBESIDENT or THE UNITED STATES :

The committee appointed by you to study and report upon the conditions as
they now exist in the Government deDartments concerned with service for the
ex-soldiers, sailors, and marines of the World War, and to propose a program
to meet immediate needs as well as to provide for the future requirements,
to the end that the intention of the Congress to give the full measure of justice
to ex-service men may be adequately, promptly, and generously met, begs to
submit the following report (which is concurred in by your personal representative. Brig Gen. Charles E. Sawyer).
In order to accomplish the purposes above named, your committee has called
before it the following organizations and individuals:
Consultants on hospitalization program appointed by the Secretary of the
Treasury.
The Director of the Bureau of War Risk Insurance and other officers of
this bureau.
The Surgeon General of the United States Public Health Service.
President Board of Managers of the National Home for Disabled Volunteer
Soldiers.
The Director of the Federal Board for Vocational Education.
Representatives of the American Legion, National Committee for Mental
Hygiene, National Tuberculosis Association, the Surgeon General of the Army
and the Surgeon General of the Navy, and the American Red Cross.
And, after having considered the testimony and made further examination
of the facts and conditions, has arrived unanimously at the following conclusions :
1. At the time the laws providing for the compensation, hospitalization, and
vocational rehabilitation of the disabled were enacted the situations which
would' successively arise, could not be foreseen, with the result that the laws
are not coordinated and do not proceed or work in harmony. As an example,
three distinct and separate governmental agencies without a common authority
were created for and are now engaged in executing the laws for the relief of
the disabled, namely, the Bureau of War Risk Insurance, the RehabiUtation
Diyision of the Federal Board for Vocational Education, and the United States
Public Health Service. The result is that the ex-service person finds it extremely difficult to obtain the prompt, generous, and sympathetic treatment
which the Congress and the country intended he should receive.
2. It is apparent that much, confusion and inefficiency are the results of the
present distribution of responsibility among the three main Government agencies
designated by law to carry out the various services to veterans, and the utter
lack of central control over these three agencies and such other cooperative governmental departments and bureaus as have been utilized in carrying out the
purpose of legislation.
3. In spite of decentralization in two of the services concerned, the inability
of the third agency (the Bureau of War Risk Insurance) under the law to
make a corresponding decentralization of its work has caused the failure of
effective results from the decentralization which has already been carried into
effect by the other two.
4. Not unwillingness to serve or reluctance to cooperate but divergent provisions of laws and limitations placed by legal decisions have prevented effective
coordination in these three respective services.
5. Limitations in the interest of presumed economy have been placed upon the
authority of those responsible for these GoA^ernment agencies in the employment of personnel, both as to number and quaUty. This has operated to the
serious embarrassment of the various agencies engaged in obtaining and re7(X)73—FI1921—7



98

REPORT ON THE FINANCES.
p

taining the quality of personnel upon which the efficiency of their departments depends. If the statutory limitations upon the nuinber and grade of the
personnel in the Bureau of War Risk Insurance, as specified in the legislative
executive, and judicial appropriation act for the fiscal year ending June 30,
1922,. are not removed before the effectiA^e operation of this act (July 1, 1921),
the embarrassment to the service of this bureau Avill be serious.
6. Lack of provision for hospital construction to provide facilities, commensurate Avith' the proved and declared needs of the immediate future and for some
years to come has been of such a degree as to prevent even the most willing
cooperation among Government departments from providing hospital and medical care so distributed as to place and quality of service to accommodate
the invalid Avards of the Nation. It is clear that although additional beds
in hospitals maintained by the several departments of the Government are available complete use of them has not been possible by reason of certain fundamental limitations, chief of Avhich is the lack of legal authority to secure
adequate medical, nursing, and other hospital personnel.
7. The resources of the United States which were made available for the
care of the men in the service have not yet been fully availed of or thoroughly
mobilized so that the ex-service beneficiaries could have had at their disposal
the best that the medical and associated professions could provide throughout
the United States.
8. Three possible causes of abuse which may develop are the too generous or
unjust payment of money as compensation, inadequate inspection of hospitalization, and medical care, and the improper supervision of trainees of the Federal
Board for Vocational Education, all combining to create a weaker rather than a
stronger moral fiber in the beneficiaries. The prevention of abuses in these three
directions is not possible by legislation, and only indirectly by regulation.
They can be prevented only by the employment of reliable personnel in direct
contact Avith the individual beneficiary and held accountable by a _single directing head. No regulations were called to the attention of the committee which
indicated the possible correction of any one of these abuses. The extent of
such abuses as Avere disclosed Avas not greater than might reasonably be expected in the uncoordinated operation of any such activities as those for soldier rehabilitation, involving so many Government officers and such a large
proportion of the population.
The committee heartily approves the principle of vocational education for
the disabled veteran, but it calls attention to the fact that an undertaking of
this magnitude on the part of the Government for the upbuilding of our citizenry, AAath the tremendous financial outlay involved, makes it essential that
CA^ery care be taken that no abuses arise to cause injustice to the.man or the
Government.
9. Some existing regulations dealing with compensation and insurance haA^e
developed certain inconsistencies and possible injustices to the beneficiaries
which should be corrected either by a more liberal interpretation of existing
statutes or by the issuance of regulations modifying those in eftect.
I'our committee is unanimous in offering the following recommendations:
1. That there be created the Veterans' Service Administration, and that there
be transferred to it the Bureau of War Risk Insurance, the Rehabilitation
Division of the Federal Board for Vocational Education, and such part of the
Public Health Service as is necessary in dealing Avith the beneficiaries of the
Bureau of War Risk Insurance and of the Rehabilitation Division of the Federal Board for Vocational Education.
That there shall be at the head of the Veterans' Service Administration a
director general, A ^ o shall be responsible to the President for all the activities
Ah




SECRETARY OF THE TREASURY.

99

now authorized by law in the three agencies transferred; that he shall utilize
all possible gOA^ernmental agencies for the hospitalization and medical care of
the disabled veterans of the World War, maintaining a strict inspection service
thereof, and wherever and whenever the governmental facilities prove inadequate shall have full authority to secure the facilities necessary either by allotment of appropriations to governmental agencies or by contract with civilian
agencies either for purchase, lease, or otherwise.
The relations of the director .general and the Veterans' Service Administra-.
tion to the other governmental agencies upon which he may call for hospital"
and medical care and service, as well as the relation to organized private
agencies in the medical, educational, and social supervision and care of the
ex-service beneficiaries of the Government, are suggested on the chart of organization of such proposed administration accompanying this report.
2. That the law creating this administration be so drawn that allof the present inconsistencies in the various laws creating and affecting the three agencies
transferred shall be eliminated, that full authority be given to the director
general to decentralize all activities, and particularly that no statutory limitations with respect to the number and salaries of the employees he is authorized' to engage within the limits of the appropriations be incorporated.
3. That pending the passage of such law the Secretary of the Treasury shall
issue orders to the Director of the Bureau of War Risk Insurance and to the
Surgeon General of the United States Public Health Service transferring to the
Bureau of War Risk Insurance all the activities of the United States Public
Health Service, together Avith the personnel engaged in providing medical services for the beneficiaries of the Bureau of War Risk Insurance and the Federal
Board fdr Vocational Education, with the exception of the^hospital and dispensary care.
,
4. That an immediate extension and utilization of all Government ho'spital
facilities be put into effect,- together with the mobilization of such civilian medical services as may prove practical.
5. That a continuing hospital-building program to provide satisfactory care
for the disabled veterans of the World War be entered upon at once. The
committee of hospital consultants appointed by the Secretary of the Treasury,
in cooperation with the Surgeon General of the United States Public Health
Service, shall submit recommendations as to the type of buildings and the
location of same. The necessary appropriations to provide for such permanent
program to be passed at the next session of Congress.
6. That in addition to the recognized medical and educational services now
provided by the Government, such humanizing services be provided in the district offices and in cooperation with private agencies in the homes of the beneficiaries as will give these beneficiaries not only financial aid and the medical
and educatienal services at present provided for by law, but such helpful neighborliness in their contact Avith the Government as will make them feel that the
whole Nation is intimately concerned in their Avelfare and rehabilitation.
. 7. That the $18,600,000 appropriated by - the Sixty-sixth Congress for the
building of new hospitals and the enlargement of existing institutions be utilized for these purposes without any delay.
It can not be too strongly emphasized that the present deplorable failure on
the part of the Government to properly care for the disabled veterans is due in
large part to an imperfect organization of governmental effort. There is no
one in control of the whole situation. Independent agencies by mutual agreement now endeavor to coordinate their action, but in such efforts the joint
action is too often modified by minor considerations, and there is always lacking
that complete cooperation which is incident to a powerful superimposed author-




100

.

. REPORT ON T H E FINANCES.

ity. No emergency of w a r itself was greater t h a n is the emergency Avhich confronts t h e Nation in its duty to care for those disabled in i t s service and now
neglected.
The summoning, of this.committee by you is an earnest to the country t h a t
you a r e convinced of the vital n a t u r e of this problem and t h a t you a r e determined to secure a prompt and effective solution thereof. T h e m a n to whom this
i m p o r t a n t mission is intrusted by you will receive in t h e performance of his
arduous duties the whole-hearted and enthusiastic support and cooperation of
all veterans and-all other p a t r i o t i c Americans. No Cabinet officer or Assistant
Secretary burdened with other duties should be t h e one to whom t h e man
charged with t h e welfare of t h e disabled saviors of our country should report.
H e should report directly to t h e President. H i s place should be held in t h e
public esteem as one of the greatest honors t h a t the President can bestow, a s
the service he can render should be of untold value to the Nation.
(Signed)

CHARLES G . D A W E S , Chairman.
F . W. GALBRAITH, Jr.,

MILTON J. FOREMAN,

Mrs. H E N R Y R . R E A ,

T . V. O'CONNOR,

THEODORE ROOSEVELT,

FRANKLIN D'OLIER,

MABEL T . BOARDMAN,

JOHN L. LEWIS,

T H O M A S W . MILLER,

H E N R Y S . BERRY.

On April 19, 1921, action based upon the third recommendation of
the committee was taken, and the Secretary of the Treasury issued
an " Order relative to the transfer of certain activities of the United
States Public Health Service relating to beneficiaries of the Bureau of
War Eisk Insurance, including trainees of the Eehabilitation Division
of the Federal Board for Vocational Education, to the Bureau of War
Eisk Insurance." By this order the complete transfer of the functions of the Public Health Service dealing with former service men,
except only the business, of running hospitals, was effected.
Coordination of the Federal Board for Vocational Education with
the other two agencies which had been thus consolidated in the W a r
Eisk Bureau was brought about by voluntary agreement between the
Director of the Federal Board and the Director of the Bureau of W a r
Eisk Insurance.
FolloAving these arrangements a coordinating board was named to
proceed at once to the Avork of reorganization in the field. I n each
district the various offices of the three Government agencies acting
for soldier relief were brought under one roof. The district superAdsor Avas made chairman of a joint board to allocate work, simplify
procedure, combine files and records, combine supply purchases and
combine health and nursing functions. I n the combined office a single
Personal Service Section was created and the disabled former service
man who presented himself to the office found this section ready to take
him in hand, find out his needs, and, whether it was a matter of a first
application for compensation, a readjustment of award, a need for
physical examination or of hospitalization or whether he was seeking post-war reeducation'to improve his chances in life, the Govern-




SECRETARY OF THE TREASURY.

101

ment agencies to be called on for starting the necessary procedure
were all represented in that group. At the close of the fiscal year
the committee oh reorsranization had visited 10 of the offices in the
field. The principle of coordination in the Government's activities
for the rehabilitation of former service men had been accepted; the
decentralization of the three united functions had made of the representatives of the Bureau of W a r Eisk Insurance a mobile force
throughout the country for bringing service to the ^ service man.
This plan was pursued until the passage by Congress of the Sweet
bill on August 9, 1921. B37 this act the coordination was definitely
accomplished and the threefold activities in respect to veterans' relief
were consolidated in the United States Veterans' Bureau, an independent establishment responsible to the President. The Bureau of
War Eisk Insurance thereby ceased to exist as a Treasury bureau,
and its functions Avere transferred to the new Veterans' Bureau.
War risk organiscition and personnel.
Shortly after assuming office as Director of the Bureau of War
Eisk Insurance, the director, on May 4, 1921, appointed a planning committee composed of four members, men through long
association with the bureau thoroughly conversant with its duties
and problems, who, after a survey of the entire bureau, were to make
recommendations to the director as to means of eliminating the duplication and overlapping of work in the various-divisions.
Acting on °the recommendation of this committee, the director
Avithin a short time had discontinued in their entirety two divisions,
the Liaison DiAdsion and the Field Investigation 'Service, distributing the work which had been performed by them to more logical
locations in those divisions in which the major part of similar or
identical functions were being performed. Within the remaining
. chief divisions of the bureau a consolidation was effected by abolish- ^
ing the detailed classification of work under numerous sections and
bringing several sections of related activities'under one head. I n this
way 15 sections were eliminated as separate entities and 4 centers of
supervision over the' same work established instead.
The director, moreover, considering it essential that the office of the
director should have a definite and accurate control of the administrative functions of the bureau itself, early in June, 1921, made both
the office of the chief clerk and the Personnel Division of the bureau
subdivisions in the organization of his office. On July 1,1921, at the
close of the fiscal year the main divisions of the bureau were as
follows:
1. Marine and Seamen's Division.
2. Allotment and Allowance Diyision.
3. Insurance Division.



102

REPORT ON T H E

FINANCES.

4. Compensation and Insurance Claims Division.
5. Medical Division.
6. Legal Division.
7. "Finance Division.
A summarized stateinent of operations in the bureau and of the
status of each division as of July 1, 1921, appears in the abstract
which folloAvs, on pages 414 to 432 of this report.
S O L D I E R S ' AND SAILORS' CIVIL R E L I E F ACT A N D BONDS.

Applications representing commercial insurance with a face value
of $12,526,956.29 have been approved by the Bureau of W a r Eisk
Insurance as submitted by members of the military and naval forces
of the United States, asking protection of payments of insurance premiums thereon, as provided in Article I V of the act
effectiA^e March 8, 1918, entitled "An act to extend protection to the
ciAdl rights of members of the Military and Naval Establishments of
the United States engaged in the present war." The above amount
covered 7,745 policies, and the amount of the yearly premiums given
this protection was $362,399.50.
.
^
There are still 146 policies with premiums protected under this
laAV representing commercial insurance in the value of $273,078.32,
the amount of premiums due on June 30, 1921, being $25,603.74.
As a guaranty for the payment of such premiums only $100 face
amount of additional soldiers' and sailors' civil relief insurance bonds
were issued during the fiscal year 1921, making the total issues for
this account $195,500. During the fiscal year 1921, $141,100 of these
bonds were retired, which, with retirements of $600 made during
prior fiscal years, makes the total retirements $141,700, the balance,
$53,800, being outstanding on June 30, 1921.
DISTRICT OF COLUMBIA T E A C H E R S ' R E T I R E M E N T

FUND.

T h e act approved June 5, 1920, amended the act of January 15,
1920, with respect to the duties of the Secretary of the Treasury in
connection with the retirement of public-school teachers in the District of Columbia. Beginning Avith July 1, 1920, the administration
of the act was vested in the Commissioners of the District of Columbia, with provision for the investment of the fund b}^ the Treas-.
urer of the United States upon the basis of information as to
amounts available furnished by the commissioners. U p to the close
of business June 30, 1920, the total credits to the fund had been
$58,366.78, and in the fiscal 3^ear 1921 moneys covered to the credit
of the fund amounted to $197,861.67, making an aggregate of $256,228.45. The investments held by the Treasurer of the United States
on June 30, 1921, were all Liberty bonds bearing interest at the rate




SECRETARY OF THE TREASURY.

103'

of 4^ per cent per annum, in the total face amount of $227,450, of
which $179,100 face amount Avas purchased (luring the fiscal year
1921. The undrawn balance in the fund at the close of the fiscal
year 1921 was $42,761.79.
HOSPITALIZATION.

The Sixty-sixth Congress of the United States passed Public Act
384, appropriating $18,600,000 for the provision of hospitals for the
veterans of the World War. This was signed by the President on
the 4th of March, and made the Secretary of the Treasury responsible
for the provision of these hospitals.
On the 16th of March the Secretary appointed a small group of
consultants, composed of Dr. William Charles White, chairman, representing the National Tuberculosis. Association; Dr. George H.
Kirby, representing the National Mental Hygiene Association; Dr.
Frank Billings, representing the American Medical Association; and
Mr. John G. Bowman, Avho, as executive officer of the Ainerican
College of Surgeons, had visited and inspected most of the hospital
institutions in the United States.
These consultants met immediately and made a careful study of the
hospital needs of the Bureau of W a r Eisk Insurance. They took
into their counsel an advisory committee of expert men loaned to
them by the National Tuberculosis Association, the National Mental
Hygiene Association, the Public Health Service, the National Home
for Disabled Volunteer Soldiers, and the Bureau of War Eisk Insurance. They heard all claims for hospitals from different parts
of the country. They secured advice from members of the Army
medical service, the I^ avy medical service, the Catholic Hospital Association, and numerous other interested bodies and individuals.
While these hearings were proceeding, a corps of workers was busy
plotting the various existing hospitals and other institutions being
used for the care of ex-service men throughout the United States.
Careful studies were also made of lines of transportation, distribution
of ex-service men, special climates, ebb and flow of the sick population, types of disease represented among the beneficiary group, and
other factors of importance, and these were carefully prepared in
chart and map form as a basis for location of new hospitals.
The consultants, with their advisory committee, have worked steadily since the time of their appointment, and in accordance with their
recommendations the Secretary of the Treasury has allotted the
moneys appropriated by the statute as follows:




Amount
allotted to
each
..project.

Date
of each
allotment.

United States Public
• Health Service No.
27, Alexandria, La.

$60,000

1921.
June 15

United States Pubhc
Health Service No.
63, Lake City, Fla.
Umted States Public
Health Service No.
50, Prescott, Ariz.

300,000

May

Hospital.

3

600,000 ...do

Number
of beds..

None

Condition of plans.

Type.

Completion of hospital.

Completed.

T. B..

June 23,1921

January, 1921

100

.do.,

.do-,

July 20,1921.

March, 1922..

422

.do-.

.do-.

June 4,1921.

May, 1922....

United States Public
Health Service No.
62, Augusta, Ga.

814,000

Aug. 2

265

N. P .

.do..

United States Public
Health Service, No.
55, Fort Bayard, N.
Mex.
United States Public
Health Service, No.
60, Oteen, N. C.
United States Public
Health Service, No.
42, Perryville, Md.
National Home for Disabled Volunteer Soldiers, Milwaukee, Wis.
National Home for Disabled Volunteer Soldiers, Dayton. Ohio.
National Home for Disabled Volunteer Soldiers, Marion. Ind.
Provisional
hospital
No. 1, Fort Walla
Walla, Wash.

850,000

May 28

250

T.B.

..do-.

748,000

Aug. 2

200

500,000

May 28

300

1,400,000

June 27




Work started at site.

Ready to commence
work as soon as site is
acquired; now with
Department of Justice; probably 30 to
60 days.
Contract awarded"^Nov.
9, 1921.

Date completion dependent upon acquisition of title.

Remarks.

Restoration of mess hall
destroyed by fire; delayed by slow shipments of surplus property.

Delayed by slow shipments of surplus property, in Ueu of purchasing new materials
obtainable in shorter
time.
Commencement of work
delayed pending acquisition of title to property.i

Subject to early acquisition of site.

(See Augusta)

N. P

do..

Sept. 19,1921

May, 1922

500

T. B

do.,

Bids due Dec. 19, 1921..

July or August, 192

• 750,000 ...do

250

....do

do.,

Bids due Nov. 29,1921..

June, 1922

100,000 ...do

50

do-.

BidsdueDec. 15,1921..

May,1922

do-.

Aug. 15,1921.

....do..-.

450,000 JMay 28
45,000

•-...

N. P

165 T . B

i?.—(

O

June, 1922-

do--

do

O

See Aiigusta.'

c
U2

Same as Prescott

Provisional
hospital
N o . 2. F o r t L o g a n H .
Roots, Little Rock,
Ark.

25-, 000 I May

Fort McKenzie, W y o . . .
Provisional
hospital
N o . 4, C e n t r a l N e w
England Sanatorium,
R u t l a n d , Mass.

102,000
740;000

A u g . 17
J u n e 27

R . C. O r p h a n a g e , N e w
• Y o r k City.
^
^,i_ R e m o d e l i n g

2,750,000

S e p t . 30

600,000

N o v . 16

Negro hospital, Tuskegee, Ala.
P a l o A l t o , Calif

}2,250,000

..do.....

1,500,000

...do.....

W e s t e r n Pennsj'-lvania.
Jefferson B a r r a c k s , St.
Louis.
MetropoUtan district,
New York City.
TotalBalance 2 —
Grand total..' ....

3

257 I N . P

do

do..
245
220 T B . . . .

N.P.

230
270
500

T.B-.
N.P.
N.P.

1,000,000 . . . d o . .
1,000,000 . . . d o . .

250
250

T.B
General.

1,000,000 . . . d o . . .

250

T.B..

17,809,000
791,000

I

.....I J u n e 2 8 , 1 9 2 1

-do..-,
-do....

P l a n s for remodeUng
p r a c t i c a l l y complet*^d;
a c q u i s i t i o n of tiule
still t o b e c o n s u m [ mated.
Standard
plans
app r o v e d . AV 0 r k i n g
drawings under way.
Standard
plans
approved.
do
PreUminary plans under
way.
Standard
plans
approved.

{

H o s p i t a l t o be o p e n e d i n
December; remaining
c o n t r a c t w o r k to b e
completed in April.

A u g . 30,1921
Site v e s t e d i n t h e Gove r n m e n t Oct. 27, 1921;
work under way.

F e b r u a r y , 1922.
J u n e , 1922

Drawings
sufficiently
advanced to permit
w o r k t o begin.

J u n e , 1922, if title t o
p r o p e r t y is acquired
promptly.

AVork t o b e s t a r t e d on
c o m p l e t i o n of w o r k i n g
drawings.
do

October, 1922

R e m o d e l i n g of p r e s e n t
b u i l d i n g s n e a r l y completed;
c o n t r a c t for
kitchen and mess haL
awarded.
O p e r a t i o n of
building
delaj'^ed u n t i l acquisit i o n of p r o p e r t y was acquired.^
T i t l e n o t yet passed t o
the Government,acquisition of title will perm i t o p e r a t i o n s a t • site
t o begin a t once.i

,

O
-do-.

fe-

-do.,
.do..

-do-,
-do..

>

.do..

-do..

O
fe
H

3 5,974

18,600,000

1 L a w forbids b u i l d i n g on l a n d n o t o w n e d b y G o v e r n m e n t .
a R e s e r v e fund t o b e used in p r o v i d i n g for emergencies w h e r e a l l o t m e n t does n o t c o m p l e t e t h e project or c h a n g e s h a v e t o b e m a d e , or for p r o v i d i n g for c h a n g e in u t i h t i e s of i n s t i t u t i o n s occasioned b y t h e a d d i t i o n of n e w b e d s .
3 T . B . b e d s , 2,837: N . P . b e d s , 2,887; General beds. 250.




W

Kl

W

fe

fe

>

in

d

Kl

o
CTT

106

REPORT ON THE FINANCES.

I t appears, therefore, that most of these hospitals are. now under
construction. The one at Fort Logan H. Eoots is practically complete and ready for reception of patients and the others are in various
stages,of completion.
I t was an early conclusion of the consultants, approved by the
Secretary, that in the face of the emergency need for hospitals no
delay should be tolerated, and that therefore each project as it Avas
decided upon should go ahead with the utmost possible speed. This
conclusion rendered impossible a formal report of the Avork done
until the completion of the task, but from time to time reports of the
progress of this work have been furnished in tabular form.
During their work the consultants have many times been asked to
appear before different bodies interested in the relief of those who
were disabled in the World War, and their methods and work have
received much favorable comment. For example, in Senate Eeport
No. 233, part 2, Sixty-scA^enth Congress, first session, there appears
the following :
Eminent authorities on hospitalization throughout the Uniteci States haA^e also
expressed their approval of the methods used and the conclusions reached by
this board, and this committtee desires here to record its own opinion that no
such constructiA^e effort to proA-ide for the needs of disabled ex-service men
has been made before, and to recommend that this board be continued under
whatever new auspices the problem of hospitalization may. come.

Then, again, the committee on hospitalization and vocational
training of the American Legion passed the following resolution in
July, 1921:
This committee, after duly hearing a report from the consultants of the Secretary of the Treasury, desires to record its appreciation of the progress made and
the work accomplished by the Secretary of the Treasury in allocating the money
recently appropriated by Congress for the expansion of existing Federal hospitals and the construction of new hospitals for ex-service men. This committee
highly approA^es the action of the Secretary in appointing consultants, chosen
from specialists of the country, to advise on the location and type of hospitals
to be erected under the congressional appropriation, and would urge upon the
Secretary of the Treasury that he request such consultants to recommend to
him such additional provisions as, in their judgment, after further careful study,
may seem necessary to complete the hospital program for ex-service men.

For the Federal GoA^ernment to launch upon a new hospital program is a matter of far-reaching importance and it involves more
than one department of administration. This fact was early apparent,
and the future use of such new equipment as seemed wise to provide
became a necessary consideration in policy. This iiiA^olved further
the question of the use of -contract hospitals. I t seemed impossible
in any extensive hospital task, such as has been presented at this
time, to exclude entirely the better contract hospital. I t has a
necessary part in the proper care of our ex-service group, both to




SECRETARY OF THE TREASURY.

107

provide expert skill in exceptional cases through the consultant
staffs, which can only be found attached to our best civil hospitals,
and also to care for patients who, through their own desire or
through the desire of their relatives, Avish to remain nearer their
homes t h a n the hospitals provided by the Government permit.
Inasmuch as the law did not permit the expenditure of these
moneys on Army and NaA'-y hospitals, there remained but two other
hospital agencies of the Government—the Public Health Service and
the National Homfe for Disabled Volunteer Soldiers, both of which,
from the point of view of future development, appeared to be departments in Avhich future use of such hospitals as were provided would
secure a permanent investment of value on the part of the Government.
With the end in view of securing this solution, one of the earliest
necessities was a change in public act 384, which was provided for
in the second deficiency bill of the Sixty-seventh Congress. The last
paragraph of the original act read as follows:
'
For carrying into effect the preceding paragraphs relating to additional lios(pital facilities there is hereby appropriated out of any money in' the Treasury
not otherwise appropriated the sum of $18,600,000, to be immediately available
and to remain available until expended, of which sum not to exceed $6,100,000
shall be used for remodeling or extending existing plants.

This was amended in the second deficiency bill as f OIIOAVS :
The * ^ * provision contained in the last paragraph of the act ** * *
'^
approved March 4, 1921, * * * is hereby repealed. The total amount
appropriated by the said act shall be available for the purposes specified in
the said act and allotments may be made from said amount at the dscretion
of the Secretary of the Treasury to the board of managers of the National
Home for Disabled Volunteer Soldiers to be transferred to its credit and disbursed by it under the approval and direction of the Secretary of the Treasury
for the purposes of the said act: Provided, That the surplus property not
required by the War Department mentioned in said act and any suitable surplus property of the Navy Depai:tment not required for its use shall be transferred for use in constructing, equipping, and supplying any of sucli hospitals.

I n the location of the hospitals the ultimate use of the institutions
has been kept constantl}^ in mind, with particular reference to the
following two phases of the situation: First, that with o.ur increased
shipping facilities it was important that the hospitals should be
located, if possible, so as to be available later as supplements to the
marine hospital service, subject, of course, to the consideration that
the hospitals must fiTSt fulfill in the best way the present emergency
function of the care of the ex-service men; second, after a survey of
the history of.the National Home for Disabled Volunteer Soldiers
after the Civil War and the number of men likely to demand domiciliary care after this war, that Aveight should be given in the allocation of the fund to the need for homes for disabled soldiers, provided




108

REPORT ON THE FINANCES.

the hospitals could fulfill their main function of adequate care of
ex-service men and ultimately meet the demand for homes for the
disabled veterans in districts not already provided in this way.
This latter phase has been especially in mind in district No. 2, comprising New York and New Jersey, and district No. 3, comprising
Pennsylvania and Delaware, the two most populous districts in the
United States, and yet with no provision for the domiciliary care of
disabled veterans.
In New York City, on the other hand, and in California it was possible to provide institutions which would fill an ultimate purpose in
connection with our shipping interests, while at this time being used
solely for ex-service men.
A further interesting development of the studies has been the
opportunity of the administration to make some suitable provision
for the Negro soldiers in the South. This is being done by a separate
institution for 230 beds for tuberculous and 270 beds for mental and
nervous cases at the great center of Negro welfare work at Tuskegee,
Ala. The cooperation of the board of managers of the Tuskegee
Institute and the donation of the site by them to facilitate the work
of building haA^e been of A^ery gratifying significance in the attempt to
do justice to all in the provision of these hospitals. Provision has
been made in the plans of this and other institutions for enlargement
to 1,000 beds in the-permanent hospital program of the Government.
The problem of the type of hospital to be built presented serious
difficulties. The two main groups to be provided for—^those suffering
from tuberculosis and those suffering from nervous and mental diseases—^^determined the types of hospitals to be built.
Standard plans of nine types were prepared, (1) sanatoria for
the tuberculous, with three types of buildings, infirmaries for advanced cases and buildings for ambulant and semiambulant groups;
and (2) hospitals for mental diseases, with six types, diagnostic
units, buildings for continued treatment, disturbed cases, reeducation, tuberculous mental and convalescent cases. Forty per cent
working draAvings for each of these with preliminary specifications
were prepared to serve as models. I n this way a great saving of time
was secured, and when institutions were decided upon and sites
chosen these standard plans were used with such modifications as
were necessary for contour of ground, preexisting utilities where
these already existed, etc., and thus speed in advertising and securing contracts of building and final erection was obtained.
I n the study which has been made of the whole problem of hospitals a great deal of information has naturally been gathered.
This is now being prepared as a guide in shaping any future hospital program of the Government.




SECRETARY OF THE TREASURY.

109

I t seems quite clear that many factors are concerned in any permanent investment of the Government in a vast hospital program.
There are now fiA^e main hospital divisions df the Government
service—the Army, the Navy, the Public Health Service, the Department of the Interior (St. Elizabeths), and the National Home for
Disabled Volunteer Soldiers. All of these have generously done their
part in the acute necessity of care for those who were disabled in the
service of their country in the late war, and by the continued cooperation of these agencies we shall undoubtedly pass the present crisis and
fulfill our duty and priAdlege in caring for those Avho sacrificed themselves in their country's service.
While the GoA^ernment owes to disabled veterans adequate hospital
care of the very best character, and this should be provided Avith the
least possible delay, yet the greatest care should be exercised that
none of the moneys appropriated should be wasted on institutions
that haA^e not a permanent A^alue to the Government service; and,
further, in appropriating additional funds a conservation of our resources should be kept constantly in mind and a careful plan such as
has been framed by the consultants should guide the future program.
Location pf ncAv institutions or enlargement of existing plants
should all follow a Federal plan in which maximum assistance to the
greatest number of ex-service men, permanent usefulness of institutions, floAv of population, means of transportation, highest type of
medical and nursing service, and similar important factors should be
•given their consideration.
P U B L I C H E A L T H SERVICE.

As organized, the Public Health Service constitutes by far the
largest Federal agency for the protection of the public health. Its
most important Federal functions are (1) the prevention of the
introduction of diseases into the United States, or from one State
to another State; (2) the investigation of diseases of man and
stream pollution; (3) supervision and control of biologic products;
(4) public-health education; and (5) the operation of hospital
service for its beneficiaries, including disabled ex-service men and
women.
National and interstate quarantine.—During the present year the
Public Health Service took over the quarantine station for the city
of New York. The service now operates all of the maritime quarantine stations in the United States. Owing to the present health
conditions in foreign countries as to cholera and plague, there are
now 35 ofiicers stationed in Europe to enforce certain quarantine
restrictions in regard to ships and passengers bound for ports of the
United States.




110

'

REPORT ON T H E FINANCES.

The Federal quarantine facilities will require some improvement
and extension in order to increase the protection now afforded the
United States. Some of the stations require changes and repairs,
and some new stations should be established in order to make more
effective the ap]Dlication of United States laAvs relating to quarauT
tine and immigration. ,.
For the control of such diseases as cholera, yellow fever, plague,
typhus fcA^er, and the like, the Congress has appropriated the "epidemic fund," which is used by the Public Health Service for the
prcA^ention of the introduction of these diseases into the' United
States, or from one State to another State. I n the last annual report of that service it was noted that plague was present in Pensacola, Fla.; Beaumont, Galveston, and Port Arthur, Tex.; NCAV Orleans, La.; and San Francisco, Calif. Measures for its control have
continued Avith such success that the operations of the service in
this connection have been reduced to the minimum which is,required
to prcA^ent further menace from its spread in the United, States.
For the prevention of the interstate spread of other diseases, the
Congress has appropriated $25,000, Avhich is being expended for the
most part in cooperation with ^tate and local health agencies in the
matter of the enforcement of regulations governing Avater supplies
furnished to the public by interstate carriers. By this method it has
been possible to control and make safe for travelers about 45 per
cent of the Avater supplies used in interstate traffic.
For the prevention of venereal diseases, the Congress has made a
special appropriation. These funds are used -by the Public Health
SerAdce in cooperation A\dth State boards of health. This cooperative
Avork has been so effectual and has brought all health authorities to
such a realization of the .necessity for work of this character that it
is recommended that it be continued and that funds for allotment to
State boards of health for this purpose be continued to be provided
by the Congress.
I t affords me great satisfaction to be able to report that there has
been no epidemic of serious proportions in the United States during
the present year. I t may be expected, however, owing to the present
industrial depression, that those diseases which haA^e a distinct relation to economic conditions Avill show an increase in prevalence during the coming year unless general conditions show an early and
material improvement.
Scientific research.—In the matter of investigations of diseases of
man and the pollution of streams, the Public Health Service has continued, through its Division of Scientific Eesearch, such iuA'-estigations and demonstrations as could be carried on within the limits of
its appropriations. Of special importance haA^e been its demonstrations in rural sanitation. With a sum of about $30,000 appropriated



SECRETARY OF THE TREASURY.

Ill

for cooperation with States, it has carried on in cooperation with
State and local health boards, health demonstrations in which the
State and local authorities have contributed over $8 to $1 of Federal
funds. Investigations of child hygiene, industrial sanitation, pollution of streams, influenza, pneumonia, pellagra, trachoma, tuberculosis, and biologic products for the prevention and cure of diseases
of man have been vigorously prosecuted.
\
.
The funds appropriated for these purposes have not been sufficient
to meet the full needs for investigations in this field, and it is recommended that further provision be made in order that the Public
Health Service may institute intensive investigations of diseases like
pneumonia, which causes one-tenth of all the deaths; tuberculosis,
which causes approximately 150,000 deaths annually; infant mortality (over 200,000 infants born in the United States die each y e a r ) ;
and cancer, which causes over 80,000 deaths each year. The groAvth
of our knowledge of the influence of diet on health and disease
renders intensive investigations of this broad field especially important at this time. S^^stematic studies of mental hygiene should
be likcAvise established with special reference to insanity and mental
defects among native and foreign stocks and their influence on the
future of the race.
I t would also be desirable to provide through the Public Healtn
Service for better reporting of the preventable diseases as they occur
in the United States.
I n order that the results of the studies and investigations made by
the Public Health Service may be disseminated for the information
of the public, consideration should be given to the publication of its
reports in numbers sufficient for this purpose.
National health prograin.—In order to meet urgent national health
needs by outlining health activities Avhich are practicable, the Public
Health Service prepared some years ago a national health program.
This program is based on the principle that the Federal public health
functions are essentially research and education, and should have
further attention by the Federal, State, and local authorities.
Hospital service.—As stated in the last annuah report, the signing
of the armistice, with the resulting rapid demobilization of the military forces, threw an extraordinary burden upon the hospital facilities of the United States to provide medical care and treatment for
disabled ex-service men and women. The Public Health Service
was utilized for this purpose, and its hospital facilities were expanded rapidly in order to meet the emergency. I t has now in operation hospitals Avith a capacity of 21,334 (as of NoA^ember 19, 1921)
beds and will shortly open other hospitals with an additional capacity of about 2,500 beds.




112

REPORT ON THE FINANCES.

I n the inception of this work the Public Health Service divided
the United'States into 14 districts and established offices for the
examination and assignment to hospitals of beneficiaries of the W a r
Eisk Insurance Bureau. These functions were performed by the
service as an agency of the War Eisk Insurance Bureau. I n order,
however, to centralize under one administrative head the services
furnished fo disabled ex-service men and women, the Secretary of the
Treasury by the order of April 19, 1921, transferred all of the activities of the Public Health Service which related to the beneficiaries of the War Eisk Insurance Bureau to that bureau, except
those activities which had to do with the operation of hospitals and
dispensaries. This order was followed by the act creating the Vet' erans' Bureau, which was approved August 9,1921, and the result has
been to relieve the Public Health Service of many duties which
properly belong to the Veterans' Bureau and which had been performed by the Public Health Service for the W a r Eisk Insurance
Bureau.
Personnel.—Since the beginning of this work to July 1, 1921, the
service has made OA^er 1,000,000 medidal examinations, furnished
hospital care to about 200,000 patients, dispensary treatment to about
1,300,000 patients, dental service to'75,000 patients, and daily occupational ahd physio-therapy to 10,000 patients. I n order to furnish
this treatment it has assembled a personnel consisting of 1,207 commissioned medical officers, 287 medical and other consultants, 1,562
nurses, 152 dietitians, 490 reconstruction aids, and 13,315 other personnel.
T H E COAST GUARD.

The Coast Guard has continued to distinguish itself in its broad
field of endeavor and presents a record' of performances which Is
worthy of the highest commendation and markedly upholds the
honorable history of the institution. The value of A^essels (including their cargoes) assisted by the cutters and stations of the
service during the year amounted to more than $66,000,000. Never
before has the record for this class of work reached this magnitude.
I n the fiscal year 1920 the value of such property assisted was somewhat in excess of $65,000,000, at that time a sum far exceeding that
previously attained, in any one year, in the history of the service.
The number of persons on board vessels assisted was a little more
than 14,000, exceeding the past year's number by about 5,500. The
number of A^essels boarded and examined by the units of.the service
in the interest of the enforcement of United States laws was in excess
of 18,000. The instances of service performed were 2,788. The number of lives saved or persons rescued from peril during the year was
1,621.




SECRETARY OF THE TREASURY."

113

Ice patrol.
The international service of ice observation and ice patrol conducted under the terms, of the International Convention for the
Safety of Life at Sea, was carried on during the season by the Coast
Guard cutters Seneca and Yamacraw^ based on Halifax, Nova Scotia.
T]ieSeneca\eit\\erst2iiion at New York the middle of February, 1921,
upon the duty of ice observation. About the 1st of April she entered upon the ice patrol and was later joined by the Yamacraw.
These cutters maintained a continuous patrol in the vicinity of the
Grand Banks, off NcAvfoundland, along the trans-Atlantic steamship
lanes where icebergs appear and form a serious menace to.navigation. The cutters report the presence of bergs and field ice to the
Hydrographic Office of the Navy and broadcast warnings by radio
for the information and protection of shipping. The service was discontinued for the season on June 30.
Winter cruising.
Annually certain Coast Guard cutters designated by the President cruise off the dangerous coasts during the stormy season, from
December 1 to March 31, to render aid to distressed navigators. The
President on November 11, 1920, designated the following-named
cutters to perform this service during the past winter: Ossipee,
Androscoggin., Gresham., Acushnet., Seneca., Manning., Seminole., and
Yamacraw. Notwithstanding the fact that the winter was an unusually mild one, the record made by the cutters was highly commendable. I t is estimated that the value of vessels (including their
cargoes) assisted by the cutters during the winter cruising was
$15,000,000. The number of persons on vessels thus assisted reached
nearly 1,000. I t is a fact worthy of comment that the cutters engaged
annually in the winter cruising are obliged to put out to the assistance of vessels in distress when weather and sea are at their worst,
and frequently must work against the very conditions that have rendered helpless the vessels to whose aid they go.
Cruises in northern waters. '
The Coast Guard cutters Bear., Unalga^ Algonquin., and Bothwell.,
which participated in last season's patrol of the waters of the north .
Pacific Ocean, ^Bering Sea, and southeastern Alaska, having completed their duties, returned to the west coast in the fall and early
winter of 1920. They Avere actively engaged during the season with
the prime duties of the patrol, and with such other matters involving
the interests of the Government and the welfare of the white and
native population as it is the custom of the Coast Guard to attend
to in those waters.
70073—FI 1921

8




114

REPORT ON THE FINANCES.

The interdepartmental arrangement of last season for the patrol of
these waters has not been continued for the present season. Coast
Guard cutters will perform the Avork as formerly. The Bear., Unalga^
Algonquin^ Snohomish., 2Lnd Bothwell haA^e been assigned to the
duties this season.
Anchorage and moverrients of vessels.
The personnel and equipment of the Coast Guard have been
utilized during the year, as formerly, in the enforcement of the rules
and regulations governing the anchorage and movements of vessels
in the navigable waters of the United States. Upon the passage of
House joint resolution 382, approved March 3, 1921, the authority
of the Secretary of the Treasury to make rules and regulations,
under section 1, Title I I , of the act of June 15, 1917, Avas terminated.
Jurisdiction then passed to the War Department by the revival of
certain provisions of the acts of March 4, 1915, and August 8, 1917,
the Secretary of War reaffirming all existing rules and regulations
by order of March 5, 1921. The enforcement of the rules and regulations remains with the Coast Guard. Coast Guard officers serveas captains of the port at New York Harbor and vicinity; Delaware
Eiver, between the northern limits of Philadelphia Harbor and the
southerly limits of New Castle, Del.; Hampton Eoads and the harbors of Norfolk and Newport NCAVS; St. Marys Eiver, from Point
Iroquois, on Lake Superior, to Point Detour, on Lake Huron, except those waters including St. Marys Falls Canals. The local Coast
Guard inspector at Chicago, 111., and the officer in charge of Station
No. 247, Harbor Beach, Mich., are charged with the enforcement of
the anchorage regulations at those ports. Periodical inspections of
anchorage grounds in other localities are made by the cutters of the
service in their regular cruising.
Derelicts.
I n the course of the year 19 derelicts and other floating dangers
to navigation were removed from the paths of marine commerce by
the vessels and stations of the service.
Coastal communication.
There.are now in the coastal communication system of the Coast
Guard approximately 2,240 miles of telephone lines, comprised of
1,800 miles of overhead line and 440 miles of cable. Eepairs, improA^ements, and extensions have been made during the year as necessary and desirable.
Aviation.
The Coast Guard aviation station at Morehead City, N. C , has
performed considerable work during the year.. The station, however.



SECRETARY.OF THE TREASURY.

'115

on account of lack of funds is not sufficiently manned or equipped
to render the maximum of service. The station has demonstrated
the vValue of aviation for the purposes of the Coast Guard.
Coast Guard repair depot.
I n the course of the year repairs, improA^ements, and additions,
more or less extensive, were made to 14 vessels of the Coast Guard
at the Coast Guard repair depot at Arundel Cove, South Baltimore,
Md.; 6 motor lifeboats were built, tested, and distributed to Coast
Guard stations; 12 motor self-bailing surfboats and 4 outfits of 8
boats each for cutters 36-39 were built; 20 hulls of motor self-bailing
surfboats were constructed for the Navy Department, and motors
were installed in 8 of them.
Vessels and stations.
One of the five new vessels mentioned in last year's report has at
this time been completed and delivered to the Government; the four
remaining vessels are nearing completion, and it is thought will be
ready for delivery within a fcAv months.^ I n this connection attention is invited to the remarks in last year's report concerning the
need of additional vessels fbr the Coast Guard to meet the requirements of the serAdce in rendering aid to marine commerce. To some
extent this need has been met by the transfer of vessels from the.
Navy Department and the Shipping Board, but it still remains important that further proAdsion be made for vessels of the type required by the Coast Guard.
Customs laws.
All the units of the Coast Guard conducted their duties in the enforcement of the customs laws. I n addition to this general enforcement of the laws, harbor tugs or launches were detailed to nine
ports of the country to aid the customs authorities in boarding vessels and in performing other customs duties.
Other activities.
Among other activities of the service eight regattas and marine
parades were patrolled and supervised by Coast Guard vessels during
the year. The patrol and supervision of annual regattas of such
nationwide interest as the Harvard-Yale regatta at New London,
Conn., and the intercollegiate regatta at Poughkeepsie, N. Y., involving the safety of thousands of persons on the water, are duties of the
first importance, and the uniformly successful performance of these
duties reflects great credit on the Coast Guard.




116

REPORT ON T H E FINANCES.

The service continued its duty, through the agency of its vessels
and stations, of boarding vessels in the inter.est of- the enforcement of the navigation, motor boat, and customs laws.
The service continued to assist the Steamboat-Inspection Service,
Department of Commerce, in the examination of persons as. to their
qualifications for certificated lifeboat men. ,
Medical aid to deep-sea fishermen was rendered by the cutters of
the service in their regular and special cruising. I t was impracticable during the year to detail a vessel especially for this purpose.
Commissioned personnel.
I n the last annual report the Secretary of the Treasury called attention, as a matter of serious concern, to the limited opportunity for
adA'-ancement in the commissioned personnel grades of the Coast
Guard due to the comparatively small number of officers in the
service, the absence of the higher grades which officers of long experience should attain, and the fact that promotions can be made only
upon the occurrence of vacancies on the active list. This condition
still prevails, and there ,is an urgent need for remedying the unsatisfactory situation brought about by the extremely slow and limited
promotion for commissioned officers now existing in the service.
Officers Avell advanced in life and of many years' service are holding
ranks entirely inappropriate to their age and experience and greatly
below those attained by officers of the same age, experience, and
ability in the other military services. The last annual register of the
Coast Guard (Jan. 1, 1921) shows the line officer at the head of the
list of permanent lieutenant commanders to be 58 years of age, with
35 years of service, and the junior officer in that grade to be 46 years
of age, with 23 years of service. I t shoAvs the engineer officer at the
head of the list of permanent lieutenant commanders (engineering)
to be 58 years of age, with 35 years of service, and the junior officer
in that grade to be 54 years of age, with 26 years of service. The
grade of lieutenant commander in the Coast Guard corresponds to
that of lieutenant commander in the Navy and major in the Army.
A bill is now pending in Congress which, without increasing the
number of commissioned officers now authorized by law, is intended,
by certain readjustments of officers in the various grades, to bring
about a just and reasonable flow of promotion. This bill has the
Treasury's unqualified approval, and it is hoped that it will soon be
enacted into laAv and thus remedy the present unsatisfactory condition affecting the efficiency and best interests of the service.
CUSTOMS.

The collections from duties and tonnage during the fiscal year 1921
amounted to $308,025,102, or $15,511,457 less than the official customs



SECRETARY OF THE TREASURY.

^ ^

117

receipts for the preceding fiscal year. The aggregate receipts collected by the serAdce from all sources for the fiscal year 1921, according to the annual reports of transactions received from collectors of
customs, amounted to $316,471,969, or $12,161,423 less than those of
-the fiscal year 1920. The receipts thus reported include collections
made for the Departments of Commerce and Labor, the Public Health
Service, estimated duties, duties and fines on mail importations, increased and additional duties, fines, penalties, forfeitures, and sundry
, miscellaneous receipts.
The expense of conducting the customs service during the fiscal
3^ear 1921 (exclusive of the so-called increase of compensatioh) was
$11,227,905, or $1,129,097 in excess of the amount expended during
the fiscal year 1920. This increase in expense is accounted for by
an increase in the 1921 customs appropriation of $1,300,000, authorized by the Congress for the main purpose of increasing salaries in
the customs service and meeting the upward trend in the cost of
rents and contingent expenditures.
The value of imports for the fiscal year 1921 (inclusive of Porto
Eico) was $3,654,449,430, a decrease of $1,584,172,238 from the 1920
imports, while the value of exports fell from $8,111,039,733 in 1920
to $6,516,315,346 during the same period.
^
While the decline of over three billions of dollars in the value
of our foreign trade during the fiscal year 1921 was reflected in the
decrease noted above in the customs collections for the same period,
there was nevertheless a general increase in customs activities due, in a
measure, to the increased number of vessels entering from and clearing
for foreign ports, and increased tonnage and head tax collectiohs.
During the fiscal year 1921, the combined foreign entrances and
clearances increased from 89,114 to 97,519, while the tonnage.tax and
head tax collections increased from $1,696,012 to $2,175,902 and from
$2,456,565 to $5,126,842, respectively. The enforcement of the Federal prohibition law likewise increased the regular customs activities. Seizures of contrabrand liquor by customs officers continued
during the fiscal year 1921 in increasing quantities.
The average number of eniployees in the customs service during
the past fiscal year was 6,671, which represented an increase of 93
as compared with the number employed during the preceding fiscal
year. As stated in the Annual Eeport of the Secretary of the Treasury for the year 1920, during the period of the war the customs
service consistently followed the policy of reducing the personnel
wherever practicable, and there was therefore some embarrassment
because of the lack of a sufficient force to take care of the increased
A^^olume of customs business that followed the close of the Avar. New
duties have been imposed by Titles I and I I of the act of May 27,




118

REPORT ON THE FINANCES.

1921, known as the emergency tariff act and the antidumping act,
respectively, and this increases the burdens of the force.
The emergency tariff act carried many articles from the free list
of the tariff act of 1913 to the dutiable list. This requires, as to
merchandise subject to specific rates, the weighing or measuring of.
the goods, and, as to merchandise subject to ad valorem rates of
duty, the determination of the foreign market value. As only a
perfunctory examination of this merchandise, such as wheat, cattle,
and Avool, was necessary under the previous tariff act, the increased
work Avhich devoh^es upon the customs service by reason of the
change is substantial. The act of May 27, 1921, moreover, provides
that appraisers of merchandise must in all cases ascertain the foreign market A'alue of imported merchandise, whether free or dutiable, and the price at which such merchandise is sold for export, to
the end that the appraiser may know whether the provisions of the
antidumping act apply. As to merchandise subject to ad valorem
rates, 'the appraiser must find the foreign market value as well as
the value of the merchandise sold for export, in order to determine
whether the export selling price exceeds the value for home consumption in the country of exportation; for if the export price, is
higher, then that price constitutes the basis for the assessment of
the ad valorem rate. Since the passage of this act all appraising
officers and special agents of the department have been required to
be constantly on the alert to detect cases which appear to fall within
the provisions of the law.
Pursuant to the proAdsions of Title V, section 501 of the act of
May 27, 1921, known as the Dye and chemical control act, 1921, the
War Trade Board section of the Department of State ceased to exist
and the duties theretofore performed by the section were placed
under the jurisdiction of the Secretary of the Treasury. For the purpose of administering the act in relation to the control of importations of dyes and chemicals, a section known as the Dye and Chemical Section of the Division of Customs was organized and appropriate regulations were prescribed for the purpose of administering
the control as provided for in the said ,act under the immediate supervision of the Chief of the Division of Customs.
In connection with the enactment of permanent tariff legislation,
the Treasury has undertaken, at the request of the Committee on *
Finance, to make a special iuA^estigation of the American valuations
of merchandise. This Avork was begun several months ago, pursuant
to special appropriation made therefor by Congress, and it is expected that the report will be completed in time for submission to
the committees shortly after the beginning of the regular session.




SECRETARY OF T H E TREASURY.

119

B U R E A U OF ENGRAVING A N D P R I N T I N G .

The bureau finished its work on the Liberty loans in April, 1921,
with the final delivery of the Fourth Liberty loan permanent bonds,
which made a total of all issues of 191,344,560 boiids and notes, both
temporary and permanent. Since that time the bureau has been required to furnish small quantities of bonds and notes for exchange
purposes. There were deliA'ered in the fiscal year 1921 a total of
438,694,824 sheets of engraved- securities and other Government
paper of all kinds,, an increase of 35,983,065 sheets. The face value
of the delivered sheets aggregated $22,641,563,678.71.
The personnel of the bureau has been reduced from a maximum of
7,427 on January 24, 1921, to 6,181 on October 31, 1921, excluding
those on indefinite furlough. The third or midnight shift was ^discontinued with the completion of the Liberty loan bonds: On account of the increase in other classes of work since 1914, it Aviil probably be necessary to continue indefinitely the two other shifts.
PUBLIC BUILDINGS.

During the Avar it became necessary to suspend the letting of contracts for the construction of public buildings. From time to time
since the cessation of hostilities the department has succeeded, in cases
where conditions Avere unusually favorable, in getting an occasional
public building under contract. I t has become apparent, hoAvever,
that the.abnormally high construction costs which prevailed during
the war could not be expected to decline in the near future to prewar levels, and that until a very material reduction in these costs,
should take place the resumption of public-building Avork must be
further postponed unless Congress should enact legislation to increase the limits of cost of t h e buildings hitherto authorized to be
constructed.
I n the meantime the activities of the Supervising Architect's Office,
aside from the maintenance and upkeep of completed and occupied
public buildings, noAV numbering approximately 1,250, have been
principally devoted to the construction of hospitals and the extension of existing plants to provide additional facilities for the treatment of patients of the Bureau of W a r Eisk Insurance, and the
Board for Vocational Education, Division of Eehabilitation, now the
Veterans' Bureau. I n addition, the Supervising Architect's Office has
been engaged throughout the fiscal year 1921 in making available
additional space to relieve congestion in public buildings, so far as
the limited appropriation provided for the p'urpose has permitted.
Eelief has been afforded in this way in 45 buildings at an avera/^e
cost for necessary changes, etc., of $5 per square foot.




120

REPORT ON T H E FINANCES.

The work of supplying furniture, heat, light, power, water, and
miscellaneous supplies for the custodians' forces in the care and operation of public buildings and their mechanical equipment has been
handled ih a satisfactory way, and it is gratifying to knoAv that the
custodians of public buildings under the control of this department,
who serve as such without compensation, are cooperating in a most
commendable way with the Supervising Architect's Office in reducing
maintenance costs to the minimum consistent with proper service.
I n the abstracts Avhich accompany this report will be found a statement showing in general the public building work authorized by'
Congress and the financial operations of the Supervising Architect's
Office for the fiscal year ended June 30, 1921; and, in addition, a
statement of the classification of buildings by titles showing expenditures in each class, prepared pursuant to the act approved June 6,
1900. (31 Stat., 592.)
THE INTER-AMERICAN HIGH

COMMISSION.

During the past fiscal year the United States section of the InterAmerican High Commission has endeavored to strengthen the cooperative relationship with the national section of the other Eepublics of the American continent Avith a view to accomplishing the
major purpose, for Avhich the commission was established, namely,
the removal of those obstacles to closer trade and financial relations
that haA^e their root either in inadequate or defectiA^e domestic legislation or in the absence of uniformity in the standards of such legislation.
^
'
The establishment of means of protecting industrial property and
good will is viewed by the commission as one of the foremost objects
of its own existence, and it has, consequently, devoted during tho
past year considerable time and energy to efforts to bring about the
ratification by additional countries of the Trade Mark Convention
of 1910 in order to make possible the. opening of the second international registration bureau at Eio de Janeiro. Close cooperation
with the Eegistration Bureau at Plavana has continued throughout
the year.
As heretofore the uniformity of commercial law in the broadest
sense has been regarded as an object of paramount importance in
the process of remoAdng difficulties in the Avay of trade development.
As a step in the direction of uniformity of legislation governing corporations the Secretary General has prepared a report on the laws of
the American Eepublics concerning the formation and operation of
domestic corporations, and the operation of foreign corporations
within their respective jurisdictions. With this report as a basis
the National Sections will be able to formulate a definite policy look-




SECRETARY OF THE TREASURY.

121

ing to greater uniformity in corporation legislation. Eealizing also
that mutual confidence is the basis of all credit operations, the commission has been a^ctive in placing before each of the National Sections the best models of legislation with accompanying commentaries
on warehouse receipts, bills of lading, bills of exchange and checks,
acceptances, and conditional sales. The legislation in the United
States governing these topics has been translated into Spanish and
Portuguese and distributed with appropriate commentary. Monographs are in preparation which will furnish the respective sections
of the commission with comparative studies of the juridical consequences of the laws now in effect in their respective countries as contrasted with those of the model laAvs propose^ for their consideration.
Apart from the studies, translations, and distribution of information, to Avhich reference has just been made, the Secretary Greneral
reports satisfactory progress.in respect of legislative action in this
field. Two additional countries have taken steps during this year to
modify their commercial codes by the incorporation of The Hague
rules on bills of exchange.
The commission is engaged not only in harmonizing the principles
of commercial law, but it is furnishing a means for the.more accurate comparison of statistics of importation and exportation. The
Brussels classification of merchandise for statistical purposes was
found to lend itself best to the commercial conditions of Latin America, and its use has been recommended by the various sections of the
coinmission. Two countries now use the Brussels classification recommended by the commission in 1916 for alh purposes, and six others
have adopted it for statistical purposes.
Under the heading of simplification of "fiscal regulations, the commission has striven assiduously to ameliorate the conditions under
which commercial travelers carry on their operations in the different
republics. The Argentine Eepublic signed the Commercial Traveler Convention late in 1920, being the ninth American country to
enter into this agreement with the United States. Eegulations giving effect to the convention are in course of preparation in the respective countries.
I n connection with those topics on the commission's program which
have to do with the foreign exchanges and the strengthening of the
banking facilities of the American Eepublics, considerable documentary material has been gathered by the secretary general and
furnished at approximately monthly intervals to the 240 members
of the Group Committees, which were established to work side by side
with the commission in the promotion of commercial ahd financial
gelations betAveen the United States and the rest of America. I n
addition to the distribution of this material, the secretary general
has compiled a series of detailed monographs on the financial condi-




122

REPORT ON THE FINANCES.

tion of the other American Eepublics. Data used in the compilation
of these reports is from authoritative sources, having been made aA^ailable through the national sections of the commission.
GENERAL

SUPPLY

COMMITTEE.

The General Supply .Committee, created by the act of June 17,
1910, as a contracting agency for the supplies in common use in two
or more executive departments and other Gov.ernment establishments
in Washington, D. C , has to a very considerable extent standardized
the vast number of articles required by the various services through
the centralization of contracting and the elimination of unnecessary
grades and varieties. The matter of specifications has received
special attention and the committee is cooperating with manufacturers with a vicAv to having the Government's specifications, as far
as possible, conform to trade customs and practice and confine purchases to articles of standard manufacture. Large economies in time
and money have been effected, and greater economy to the Government will be attained with the progressive development of purchase
and distribution.
The General Supply Committee, in an effort to effect economy in
purchases, has ascertained the requirements of the A'arious departments and independent establishments of the GoA^ernment on certain
commodities, pooled the requirements, and advertised for definite
quantities for deliA^ery to the committee in Washington, D. C , which
made local distribution. The shipment in bulk to one point of delivery enabled the manufacturers to offer lower prices than would
liaA^e been obtained under the system of requesting quotations on
indefinite quantities for delivery over a stated period and proA^ed con-^
clusively that a system of centralized purchase results in the reduction of expenditures for Government material, supplies, and equipment, through buying at the most. opportune seasons direct from
the manufacturer or producer and in quantities that Avould insure
the obtaining of minimum prices. Better competition would be obtained by the.consolidation of requirements'and the adA^ertisement
for delivery of supplies in definite quantities at a given time and
single point of deliA^ery, as many manufacturers are reluctant to-bid
for indefinite quantities on long-term contracts.
The e°xperience of the General Supply Committee over a period
of 10 years has demonstrated that a single agency authorized to contract, purchase, store, and distribute all common supplies required
by the various branches of the Government service in the District
of Columbia can effect substantial economy in providing for the
procurement of Government supplies on a business basis.
During the fiscal year 1921 the committee was confronted with
a falling market, and on many classes of supplies it found it neces-




SECRETARY OF THE TREASURY.

123

sary to enter into many two,'three, and six month contracts in order
that the Government might get the benefit of reduced prices, the
negotiation of which greatly increased the work of the committee.
The reported purchases under General Supply Committee contracts
during this period amounted to $7,324,145.40.
, The value and A^olume of surplus property transferred and reissued, under the prOAdsions of the Executive order of December 3,
1918, and the act of May 29, 1920, during the fiscal year 1921 exceeded that of any other similar period since this duty was imposed
upon the General Supply Committee. The value of supplies received
amounted to $1,761,330.81, of which $1,178,891.57 was disposed of
by transfer to other Government departments and establishments
and sale at public auction, leaving an accumulated balance for the
year of $582,439.24. This, added to the balance as of June 30, 1920,
of $1,020,130.86, results in a total balance of $1,602,570.10., Since
December 10, 1918, property to the value of $4,133,038.95 has been
transferred to the General Supply Committee, of Avhich $2,530,468.45
has been issued. The utilization of this material represents a much
larger amount of money saved than is shown by these figures, inasmuch as the commercial prices which prevailed exceeded the prices
at which the articles were transferred.
The need for a warehouse for handling of this work can not be too
strongly emphasized, as the present equipment is inadequate, unsuitable, and dangerous from the standpoint of fire and theft.
The maintenance of card records of surplus property existing in
other Government departments and the viseing of lists of requirements of all GoA^ernment departments and establishments daily as
required by the ExecutiA^e order of August 27, 1919, insures the
utilization of such surplus wherever possible in lieu of commercial
purchases and thus prcA^ents. the expenditure of public funds for
this purpose. Through concentration of effort and closer cooperation the departments having large accumulations of property are
declaring it surplus,- and rendering more ^ accurate and complete
inventories than in the past. The work incidental to the necessary
classification and incorporation of inventories into the records, which
are the source of information of available surplus property to other
Government services, has practically doubled.this year.
C H E C K I N G ACCOUNTS OF GOVERNMENT CORPORATIONS AND RAILROAD ADM I N I S T R A T I O N M A I N T A I N E D W I T H . TREASURER OF TFIE U N I T E D STATES.

The United States Shipping Board Emergency Fleet Corporation,
the United States Housing Corporation, the War Finance Corporation, the United States Grain Corporation, the Eussian Bureau of
the War Trade Board, the several Federal land banks, and the Eailroad Administration have maintained checking balances with the'




124

REPORT ON T H E FINANCES.

Treasurer of the United States in the manner outlined in previous
annual reports of the Secretary of the Treasury.
The following table shows the amount of checks drawn by these
agencies and paid by the Treasurer from the dates of the establishment of the account to NoA^ember 15, 1921, and t h e balances on deposit with the Treasurer on the latter date:
Checks paid b y t h e
Treasurer of.the
Uriited States.

Emergency Fleet Corp oration
United States Housing Corporation..
War Finance Corporation
United States Grain Corporation
Russian Bureau of the War Trade
Board.
Federal land banks
Railroad Adniinistration

Date.

Balance with
the Treasurer of
the United
States Nov. 15,
1921.

From—

To-

Feb. 28,1918
July 27,1918
June 2,1918
Oct. 31,1918

Nov. 15,1921
do
do
do

$16,433,436.38
2,076,333.67
425,063, 297.73
7,000,000.00

13, 333,773.99 Nov. 30,1918 Sept. 28,1920
17, 237,486.21 June 2,1920 Nov. 15,1921
1, 829, 845, 545.88 Apr. 13,1918
do

484.00
23,269,151.02

$6,611,589,007.88
141,366,555.69
3,038, 858, 751. 74
926,967, 229.41

(1)

, 1 Closed Sept. 28,1920.

The total payments made by the Treasurer for these Government
corporations and the Eailroad Administration to November 15, 1921,
were $12,579,198,350.80.
•
The plans evolved by the Treasury for handling the accounts and
disbursements of these agencies have been operated to the entire satisfaction of all concerned. The funds have been assured absolute
security, and appropriated moneys running into large amounts have
not been withdrawn from the Treasury until actually needed to pay
obligations of the Government, thus reducing the amount of Government borroAVings, Avith the consequent saving in interest charges.
NEAV CURRENCY DESIGNS.

The matter of the revision of the designs for paper-currency issues
' of the United States has been before the department for more than
a decade. I t appears that during the Treasury administration of Secretary MacVeagh a committee Avas designated to consider the situation
on account of the generally unsatisfactory condition of the currency
due to the multiplicity and confusion of designs. An exhaustive study
was made and a comprehensive report was presented which received
the Secretary's approval in the closing days of his administration.
This report contemplated a uniform design for the backs of all notes,
irrespectiA^e of kind or denomination; for the faces denominational
portraits were suggested, and, in general, a characteristic design was
proposed for each denomination, irrespective of the kind of currency,
the differentiation of the issues being in the titles, in the legends, and
in certain color work. Incorporated with the proposals was the suggestion that the size of the note be reduced by approximately one-




SECRETARY OF THE TREASURY.

125

third, or from about 7^ by 3 inches to about 6 by 2J inches. While
the report received the approval of the Secretary at the time, its
execution was never actually undertaken.
In the adoption of designs for Federal reserve notes, however,
many of the characteristic features of the designs presented in the
committee's report were adopted, and the same features were incorporated in the designs for Federal reserve bank notes when issued.
These designs, from an artistic point of view, doubtless were much
superior to many of the designs then in use, but in practice it has been
found that certain changes in design are advisable in order to add additional protectiA'^e features. A new inquiry was accordingly undertaken
and for this purpose a standing department committee on new currency designs was appointed, as indicated in the last IAVO annual reports of the Secretary of the Treasury. During the past year some
further progress lias been made and particular consideration has been
given to. the question of the advisability of reducing the size of the
notes. I n this connection the advice of the Federal reserve banks and
others is being taken, and final decision with respect to the proposed
reduction will be made before any new designs are actually undertaken.
The cooperation of the Fine Arts Commission has been asked and
given, and the whole matter of revision of the paper-currency designs
will be pushed as rapidly as possible to a satisfactory conclusion.
The ideal will be, of course, to secure designs which, while possessing the highest possible artistic qualities, will at the same time in the.
greatest possible degree circumvent counterfeiting and note raising.
In the event it should be determined to reduce the size of the notes,
it is probable that the matter will be presented to the Congress for
the appropriation necessary to undertake the work, for the regular
appropriations would not be adequate to undertake the new work
and at the same time continue the printing of the necessary notes of
old design to meet the requirements of the public.
TREASURY

ORGANIZATION.

A number of important changes have taken place during the past
year in Treasury organization. On July 1, 1921, the office of the
Under Secretary of the Treasury was created, and on the same date
there were abolished the offices of the two additional temporary
Assistant Secretaries of the Treasury authorized in the urgent deficiency act, approA^ed October 6, 1917, to continue during the period
of the Avar emergency. Assignment of the bureaus and offices of the
Treasury Department and the divisions of the office of the Secretary
of the Treasury for administrative superAdsion by the Under Secretary and the Assistant Secretaries is set forth in Department Circular
244 of August 9, 1921. (Exhibit 77, p. 381.)




126

REPORT ON THE FINANCES.

An important addition to the Treasury was brought about by the
creation on June 10, 1921, of the Bureau of the Budget as a bureau
of the Treasury Department under the provisions of the budget and
accounting act, approved June 10, 1921. Eeference to this bureau
in more detail appears under the subject ''Econom}^ in Government
Expenditures: Budget System " (p. 31).
The DiAdsion of Public'Moneys, office of the Secretary, which was
organized on July 1, 1877, was abolished on July 1, 1921, its duties
being transferred to the Division of Bookkeeping and Warrants of
the office of the Secretary.
The Treasury was relicA^ed of supervision of the accounting and
auditing branch of the Government on July 1,1921, the offices of the
Comptroller of the Treasury and the six Auditors of the Treasury
being abolished and absorbed on that date into an independent
.General Accounting Office under the provisions of the budget and
accounting act, approved June 10, 1921. The Treasury also was
relicA^ed of administratiA^e responsibility for the important Bureau
of War Eisk Insurance on August 9,1921, the functions and duties of
the bureau having been transferred to the United States Veterans'
Bureau, an independent bureau under the President, established under the provisions of the act of August 9,1921, as amended b.y the act
of August 24, 1921.
PERSONNEL.

When war was declared, April 6, 1917, the number of employees
in the Treasury Department at Washington was 8,138. By December 31, 1917, the force had grown to 13,182; to 20,080 on June 30,
1918; to 29,526, December 31, 1918; to 32,246, June 30, 1919; and
to 35,267 on October 31, .1919, when the highest point was reached.
The number has since gradually decreased until on October 31, 1921,
the total was 20,347. A reduction of 2,372 in the Treasury personnel
has been accomplished through the establishment of the general
accounting office, which took out of the Treasury, effective July 1,
1921, the office of the Comptroller of the Treasury and the offices
of the six auditors of the Treasury Department. A further reduction was caused by the separation .from the Treasury Department
of the Bureau of War Eisk Insurance, which became a part of the
Veterans' Bureau by act of Congress on August 9, 1921. The bureau
.at the time of its separation from the Treasury Department had
5,025 employees on its rolls. There was a slight increase in the field
force of the Treasury Department during the last fiscal year on
account of increased duties imposed, among other things, in connection with the collection of the revenues, the enforcement of prohibition, and the extension of the Public Health Service. The following




127

SECRETARY OF THE TREASURY.

table indicates the offices in which the larger increases in the Washington force occurred during and since the Avar, and shows the number of employees at the beginning of the war, the greatest number
reached, and the number employed on October 31, 1921:
Treasury Department, Washington.

Bureau or office.

Loans and Currency
Register of the Treasury
Treasurer of the Unitea States.
Engraving and Printing
Internal Revenue
War Risk Insurance
Chief clerk
'.
Auditor for War Department..
Auditor for Navy Departraent..
Public Health
:

L argest number.
<
Number
employed.
employed
at beginnmg
Date.
of war. Number.
84
21
564
4,502
607
23
335
207
100
45

2,930
1,140
1,341
8,402
7,293
17,336
1,192
1,072
318
771-

Feb.
Mar.
Nov.
Oct.
Mar.
Mar.
Sept.
Jan.
Sept.
May

29,1920
31.1920
30.1919
31,1918
31.1921
6,1919
30,1921
31.1920
30.1920
31.1921

Number
employed
Oct.
31,1921.
1,779
886
1,220
6,419
6,999
15,025
1,185
2 883
2 303
600

1 Number in War Risk Bureau on Aug. 8,1921.
2 Number June 30,1921. Became part of the General Accounting Office, July 1,1921.

A table showing the number of employees in the Treasury Department in^ Washington by months, from October, 1920, to October, 1921,
and in the field on October 31,1920, and October 31, 1921, is attached
to this report as Exhibit 74, page 374.
R E T I R E M E N T OF CIVIL-SERVICE E M P L O Y E E S .

There were retired during the fiscal year 1921, 339 employees in
the departmental service in Washington under the Treasury, and
597 employees in the field service of the Treasury, which makes an
aggregate of 936 retired under the provisions of the act approved
May 22, 1920. The total salaries of, employees retired from the
departmental service, excluding piece-rate workers, amounted to
$395,649.51 per annum, while the total salaries of retired field employees amounted to $605,750 per annum, exclusive of the compensation of employees paid on a fee basis. Of the total retirements,
269 employed in Washington and 537 employed in the field service
were retired with regular annuities under the act, while 14 employees in Washington and 28 in the field service were retired Avithout annuities. The number of retirements on account of disability
was 88 in all, of which 56 were employees in the departmental service
in. Washington, and the remainder in the field service. Three hundred and eighteen employees retired from the departmentad service
have been granted annuities amounting to $189,659.56 per annum,
and seven have applications pending before the Pension Bureau.
Five hundred and thirty-two employees in the field service retired
were granted annuities amounting to $281,107.10 per annum, and




128

REPORT ON THE FINANCES.

37 have applications pending. Excluding piece-rate workers and
employees retired without annuities, the average salary of employees
retired from the departmental service was approximately $1,280 per
•annum, while the average annuity granted to all departmental employees retired was approximately $600 per annum. Corresponding
figures for the field service show an average salary of $1,350 per annum,
with average annuity under retirement of approximately $530 per
annum. The majority of the retirements were made effective within
a period of 90 days after the approval of the retirement act, or shortly
' thereafter, pursuant to recommendations of a special committee appointed by the Secretary and charged with the duty of making an
independent investigation in each case arising under the act,
The payments made by the Treasury during the fiscal year 1921
from the civil service retirement and disability fund exclusive of investments, on the basis of warrants drawn, were $3,100,000. Under
the provisions of section 8 of the act, the Secretary of the Treasury
is directed to invest in interest-bearing securities of the United States
such portions of the fund as, in his judgment, may not be immediately
required for the payment of annuities, refunds, and allowances provided in the act. Pursuant to this provision, there was held in the
investment fund at the close of business June 30, 1921, $8,000,000 face
amount of Treasury notes of series A-1924, bearing interest at the
rate of 5f per cent per annum. Subsequent to the close of the fiscal
year these securities were sold, with a small profit on the investment
in addition to the accrued interest, and the total proceeds have been
reinvested in fourth Liberty loan 4^ per cent bonds to the face amount
of $8,867,550, which were held in the fund on November 15,1921.
The administration of the retirement features of the civil service
retirement act is intrusted to the Commissioner of Pensions under
the direction of the Secretary of the Interior. While a sufficient time
has not elapsed to enable definite conclusions to be drawn with respect
to the extent of the advantages which may be expected from the retirement law, it may be stated in geineral from the experience of the
Treasury up to date that it has already proved helpful and that it
has resulted in improved efficiency and economy in the transaction of
the public business. There are two suggestions, however, in connection with the retirement act which, in my opinion, should receive the
careful consideration of the Congress, namely, (1) the possibility that
the age limit for retirement might be loAvered from 70 years to not
more than 68 years, and (2) whether the amount of the annuities
granted under the act should be somewhat increased. I t is believed
that if the retirement age were lowered and at the same time further
restrictions were placed upon more than one extension of service after
the retirement age, the public service would receive still further




SECRETARY OF THE TREASURY.

•

129

benefits from the retirement plan. This, hoAvever, should not be done
unless increased annuities Avere granted. At the present time the annuities under the act appear to be small, particularly if one takes into
consideration the prevailing prices of the necessaries of life and the
further fact that in the majority of cases it is rarely possible at the
average salary paid by the Government for employees to lay aside
while in the service an amount of savings sufficient to cover any deficiencies in the annuity.
A table showing the number of employees retired and total salaries
and amount of annuities granted to June 30, 1921, is attached to this
report as Exhibit 73, page 373.
SURETY BONDS.

The Section of Surety Bonds during the hscal year 1921 received,
approA^ed as to corporate surety and either filed in the section or forwarded to the several divisions of the General Accounting Office,
about 100,000 bonds. Of this number about 90,000 Avere executed by
corporate sureties and about 10,000 by individual sureties. The aggregate penalties of these bonds amounted to about $1,600,000,000, Avith
an aggregate total premium charged of approximately $2,600,000. Of
the total number of bonds approved about 82,000 were Treasury
Department bbnds and '3,701 Avere for the NaA^y Department, which
is the next in order in number of bonds required.
During the past year seven new surety companies ^have qualified
to transact business Avith the Government. Four companies have
during that period of time become insolvent and one company has
voluntarily retired from business.
EffectiA^e July 1,1921, the Section of Surety Bonds Avas transferred
to and became a part of the Division of Appointments of the Treasury
Department, in accordance with the provisions of.the legislative,
executive, and judicial appropriation act approved March 3, 1921.
ANNUAL

REPORT OF D E L I N Q U E N C I E S

OF DISBURSING

R E N D I T I O N OF T H E I R

OFFICERS

IN

THE

ACCOUNTS.

The act of July 31, 1894, as amended by section 4 of t h e act of
May 28, 1896, required the Secretary of the Treasury on the first
Monday of January in each year to make report to Congress of such
officers and administrative departments and offices of the Government as were, respectively, at any time during the last preceding
fiscal year delinquent in rendering or transmitting accounts to the
proper offices in Washington and the cause therefor, and in each
case to indicate whether the delinquency was waived. The Secretary
was also required to report officers, including postmasters and officers
70073—FI 1 9 2 1 — ^ 9




130

'

REPORT ON THE FINANCES.

of the Post Office Department, Avho were found upon final settlement
of their accounts to have been indebted to the Government, with
the amount of such indebtedness in each case, and who, at the date
of making report, had failed to pay the same into the Treasury.
The Comptroller General of the United States, by decision of
October 7, 1921, has held that by reason of the budget and accounting act, approved June 10, 1921, the annual report of delinquencies
and balances found due should herea-fter be made by the General
Accounting Office and not by the Treasury Department. The annual
report due on the first Monda}^ in January, 1922, and thereafter Avill
accordingly be rendered by the General Accounting Office and not
by the Treasury.
RECOGNITION

OF

ATTORNEYS

AND

AGENTS

REPRESENTING

CLAIMANTS

BEFORE T H E TREASURY AND OFFICES T H E R E O F .

The Treasury Department h^s maintained for many years a roll
of attorne3^s and agents who bave been recognized under the act of
July 7, 1884, to represent claimants before the Treasury Department
and offices thereof. With the large increase in claims pending before
the department and in the number of applicants for enrollment,
particularly with reference to internal-revenue matters, it became
necessary to. adopt new regulations Avith regard to practice before
the department, and Treasury Department Circular No. 230, dated
February 15,^1921, as.amended June 7, 1921, and July 1, 1921 (Exhibit 67, p. 340), Avas accordingly issued. This circular establishes
a Committee on Enrollment and Disbarment, and sets foith the laws
and regulations governing the recognition of attorneys, agents, and
other persons representing claimants before the Treasury Depart-^
ment and offices thereof. Since February 15, 1921, OA^er 3,000 persons
haA^e been enrolled to practice, and scA^eral hundred applications arc
now pending.
The Committee on Enrollment and Disbarment is organized with
representation from the several Treasury offices concerned, and operates under the general superAdsion and direction of the Secretary. One
of its most important functions is the control of improper practices
before the department, and in this Avork it has endeavored to keep in
close contact with the Grievance Committees of the scA^eral States and
local bar associations. The folloAving resolution, adopted at the
annual meeting of the American Bar Association in 1921, evidences
the cooperation extended to the committee by the bar associations:
" Whereas, uncier and by Adrtue of certain acts of Congress relating' thereto,
the Secretary of the Treasury has appointed a Committee on Enrollment
and Disbarment t.o receive and consider applications to be recognized as
attorney, agent, or other representative before the Treasury Department or




SECRETARY OF THE TREASURY.

131

the several bureaus thereof; to receive complaints against those enrolled;
conduct hearings; make inquiries; perform other duties as prescribed; and
dO' all things necessary in the matter of proceeding for enrollment or disbarment of such attorneys, agents^ or other representatives, pursuant to the
regulations of the Treasury Department; and
Whereas, it is important that the said Committee on Enrollment and Disbarment 'have the assistance of qualified organizations in the different States
in the securing of information concerning the character and qualifications
of persons applying for enrollment as such agents and attorneys; and
Whereas, it is believed that this service can be rendered effectively by the several State and local bar associations of the country: Now, therefore,
Resolved by the Conference of Bar Association Delegates attending the present session of the American Bar .Association, That we earnestly recommend
to the several State and local bar associations of the United States that they
shall each put themselves in communication with the Secretary of the Treasury of the United States and offer to render to the Committee on Enrollment and
Disbarment appointed by him such assistance as they may be able in the investigation of character and the necessary qualifications of persons Avho may apply
to said Committee for recognition as agents and attorneys to represent those
having business before the said Department, and also in* any investigation in
disbarment proceedings or otherwise, that may be made by said Committee into
the practices of any such agents and attorneys as may have been recognized
by the said Department, and that each of said bar associations shall delegate
to a committee of its. own body the performance of the duties and rendering
of the service pertaining to the above-mentioned matters, and communicate the
name? and addresses of said committee or its Chairman to said Committee on
Enrollment and Disbarment of the Treasury Department; and further
Resolved, That the said committees of the bar associations of the respective
States and of the local bar associations shall furnish to the Secretary of the
Treasury from time to time, through the said Committee on Enrollment and
Disbarment, such evidence as they may possess that would indicate the unfitness of any person admitted to practice before the Treasury Department or
any applicant for such enrollment; and that said committee of said bar associations, upon request from the Secretary of the Treasury', through said Committee on Enrollment and Disbarment, undertake to examine from time to time
into the fitness of any persons admitted to practice before the Treasury
Department or any applicant for such enrollment, and in that connection to
furnish to the Secretary of the Treasury such information as may be available;
it being understood that this conference regards the giving of legal advice
concerning the income tax law as the practice of the law."
P A N A M A CANAL.

. The general fund of the Treasury Avas charged during the fiscal
year 1921 with $18,318,397.85 on account of the Panama Canal, including $16,230,390.79 for maintenance and construction work and
$2,088,007.06 for fortifications and miscellaneous expenditures. The
general fund was credited during the year with $11,914,361.32 receipts
from tolls, etc., making a net expenditure for the year of $6,404,036.53.
The total amount expended for canal construction, fortifications,
maintenance, etc., from the general fund to June 30, 1921, exclusive




132

REPORT ON THE FINANCES.

of reimbursements from sales of bonds, was $341,257,961.41, while
the amount received from Panama Canal bonds, including premiums
thereon, issued in 1907,1908,1909,1911, and 1912, was $138,600,869.02,
making the total expenditures on account of the Panama Canal to the
close of the fiscal year 1921, $479,858,83.0.43.
FINANCES.

The following statements, showing receipts and expenditures, the
estimates for the current fiscal year and the ensuing fiscal year, and
the condition of the Treasury, are submitted:
RECEIPTS AND EXPENDITURES.

Fiscal year 1921.
The receipts and expenditures of the Government during the fiscal
year ended June .30, 1921, on the basis of warrants issued, adjusted
to daily Treasury statements, rcAdsed, were as follows:
(See further details on pages 140 to 150.)
GENERAL F U N D .
KECEIPTS.

I. Receipts,:
A. Ordinary receipts—
1. Customs
-__ $308, 025,102.17
2. Internal rcA^enue—
1. Income and profits taxes
3, 228,137, 673. 75
2. Miscellaneous internal revenue
1, 351, 835, 935. 31
3. Sales of public lands
1,530,439.42
4. Miscellaneous receipts, including Panama
Canal
695, 946, 543. 20
5,585,475,693.85
5. Adjustment to the general fund—
1. Decrease in uncovered receipts, June 30,
1921, under such amount, .June 30,1920_
Total ordinary receipts^..

958, 648. 62

^___ 5, 584, 517, 045. 23

Total ordinary expenditures, including public-debt expenditures chargeable against ordinary receipts (see II beloAv)— 5, 517,110, 856.11
Excess of ordinary receipts




67, 406,189.12

SECRETARY OF THE TREASURY.

133

EXPENDITURES.

II. Expenditures:
,
A. Ordinary disbursements (see note, p. 134) —
1. Legislative ______•
^
2. Executive
3. State Department
.^4. Treasury Department (includes $255,752,739.49 MVar-kisk Insurance)
5. War Department
6. Navy Department
7. Interior Department (excludes Indian service
and pensions
8. Post Oflice Department (excludes Postal Service payable from postal revenues, but includes deficiencies paid from general fund) _
9. Department of Agriculture
10. Department of Oommerce
11. Department of Labor
12. Department of .Justice—
.—
33. Judicial branch
_"
14. Independent oflices—
1. Federal control of transportation systems and transportation act, 1920
2. ShippingBoard
.
3. Federal Board for Vocationa.1 Education
____^
4. Interstate Commerce Commission
' 5. AU other.
• 15. District of Columbia____
16. Panama Ganal
17. Indian service——
18. Pensions
19. Interest on the pubUc debt
20. Purchase of foreign obligations
21. Purchase of farm-loan bonds
22. United States Government life-insurance fund
investnients
^
23. Civil-service retirement and disability fund
investment
Total disbursements

$18, 480, 866. 22
/ 2, 793, 626. 69
8, 523, 891. 27
'471,695,0.50.15
' 564, 564, 500. 63
' 647, 870, 645. 21
40, 804, 923. 39
° 135, 239, 697. 83
120, 599, 697. 08
25, 892, 589. 05
7, 040, 856. 88
4,128, 401. 27
13, 519,049. 26
739, 019, 362. 64
92,886,783.88
104, 672, 029' 43
6, 097, 061. 30
' 14, 216, 224. 61
23, 242, 259. 54
16,230,390.79
41, 470, 807. 60
260, 611, 416.13
996, 676, 803. 75
73, 896, 697. 44
8, 60O, 000. 00
20, 558, 946. 94
;
8, 000, 000. 00
4, 467, 332, 578.98

* Includes Tariff Comuiission, Alien P r o p e r t y Custodian, Bureau of Efficiency, Civil
Service Commission, and European Food Relief.
2 Does not include Army, Navy, and Marine Corps allotments of pay.
8 Includes public buildings and expenses of loans.
* Includes rivers and harbors and Army allotments of pay. Does not include maintenance and operation of P a n a m a Canal.
5 Includes Navy and Marine Corps allotments of pay.
• I n c l u d e s additional compensation, Postal Service (payable'from T r e a s u r y ) , and Federal
control of telepbone and telegraph systems.
' Includes Food and Fuel Administration, Council of National Defense, Housing Corporation, State, War, and Navy D e p a r t m e n t Buildings, I n t e r d e p a r t m e n t a l Social Hygiene
Board, F e d e r a l T r a d e Commission, Federal Reserve Board, Employees' Compensation Commission, Smithsonian I n s t i t u t i o n , and other independent offices.




134

REPORT ON T H E FINANCES.

I I . E x p e n d i t u r e s (continued) :
A. Ordinary disbursements (continued).
24. Adjustments to the general fund—
1. Decrease of uncovered
repayments on J u n e
30, 1921, under such
amount on J u n e 30,
1920
$1, 380, 889.12
2. Decrease in book credits
of disbursing ofRcers .
and agencies^Avith the
T r e a s u r e r on J u n e 30,
1921,
under
such
amount on J u n e 30,
1920
630, 831, 620. 57
632, 212, 509. 69
3. Increase in amount of
unpaid w a r r a n t s on
J u n e 30, 1921, over
such amount on J u n e
30, 1920

4, 827, 582. 56
$627, 384, 927.13

Total ordinary cash expenditures

5,094, 717, 506.11

B. Public debt expenditures chargeable against ordi- n a r y receipts—
1. Sinking fund
261,250,250.00
2. P u r c h a s e s of Liberty bonds from foreign repayments
-^
73,939,300.00
3. Bonds and notes received for F e d e r a l estate
taxes
26, 479, 300. 00
4. Redemptions from Federal reserve bank franchise t a x receipts
60, 724, 500. 00
Total

422, 393, 350. 00

Total ordinary expenditures, including
sinking fund and other debt expendit u r e s chargeable against ordinary receipts
5, 517,110, 856.11
NOTE.—The term " Disbursements " as used in these tables is on the basis of warrants
issued (net) and includes unexpended balances to the credit of disbursing officers at^the
end of the year, but not expenditures under such unexpended balances at the beginning of
the year (taken up net in Itein II, A.24-2).




135

SECBETAEY OF THE TKEASXJEY.
PUBLIC DEBT.

[. Receipts (continued) :
B. Public debt receipts—
1. Fourth Liberty loan.
'$2,213.00
2. Victory Liberty loan
J' 12, 730.00
3. Treasury notes, Series A-1924___
311,191, 600. 00
4. Treasury (war) savings securities
26,418,352.19
5. Certificates of indebtedness
8,486,964, 950. 00
6. Postal savings bonds
178, 880. 00
7. Federal reserve bank notes and national bank
notes
40,186, 945. 00
Total public debt receipts

8, 864, 925, 784,19

II. Expenditures (continued) :
C. Public debt expenditures—
1. First Liberty loan
200, 000. 00
2. Second Liberty loan
8, 770, 450. 00
3. Third Liberty loan
51,155,500.00
4. Fourth Liberty loan
39, 499, 250. 00
5. Victory Liberty loan
332,587,450.00
6. Treasury (war) savings securities
159,731,963.18
7. Certificates of indebtedness
1
8, 552, 216, 500. 00
8. Federal reserve bank notes and national bank
notes
• 37, 460, 631. 00
9. Miscellaneous redemptions
152, 269. 69
Total public debt expenditures

9,181, 774,013. 87

Excess of public debt expenditures over public debt receipts—
Public debt expenditures chargeable against ordinary receipts

316, 848, 229. 68
422, 393, 350. 00

Excess of public debt receipts over public debt expenditures,
exclusive of such expenditures chargeable against ordinary
receipts
105, 545,120. 32
Summiary of general fund transactions, fisca,l year ended June 30, 1921.
Receipts.

Expenditures.

•Ordinary receipts, including trust-fund receipts but excluding postal
revenues
$5,584,517,045.23
Expenditures for current and capital outlays^ including trust-fund
expenditures, but excluding Postal Service paid from postal
revenues
Public-debt receipts
8,804,925,784.19
Public-debt expenditures chargeable against ordinary receipts
Other public-debt expenditures
-

§5,094,717,506.11

Total expenditures from the general fund..
Excess of receipts over expenditm'es

14,276,491,519.98
172,951,309.44

Grand total.

14,449,442,829.42

422,393; 350.00
8,759,380,663.87

14,449,442,829.42

'General-fund balances:
Balance per daily Treasury statement June 30, 1920
$357, 701, 682. 23
Add net excess of receipts over expenditures in June reports subsequently received-.
2, 245, 338.10
359,947,020.33
F^xcess of receipts over expenditures (as above) fiscal year 1921_ 172,951,309. 44
Balance in the Treasury June 30, 1921, as per statement of the
public debt of the United States Government532,1^8,329.77
1 Counter eritries.




136

REPORT ON T H E FINANCES.
P o s t a l Service.

[Exclusive of Post Office Department proper, which is included in " Civil Establishment."]
.Postal-revenue receipts

$463, 491, 274. 70

Postal service paid from postal revenues ^

463, 491, 274. 70

United S t a t e s notes {greenbacks).
Issues to replace Avorn and mutilated notes
.
$319, 324, 000. 00
Worn and mutilated notes retired
319,324,000.00
.The redemptions during the year of the notes unfit for circulation necessitated the issue of a like a m o u n t thereof to maintain the outstanding aggregate
of the notes a s required by law.
Gold reserve fund.
Balance in reserve fund J u n e 30, 1920
Balance in reserve fund J u n e 30, 1921

;

$152,979,025.63
152,979,025.63

The redemptions of notes for gold from the reserA-e fund during t h e year v/ere:
United States notes, $416,290.
As the redeemed notes were exchanged each day for gold in the general fund,
t h e reserve wa:s maintained a t the fixed sum required by law, including
$2,979,025.63 t a x on additional circulation received under act of May 30, 1908.
T r u s t funds held for the redemption of the notes and certificates for which they
0
a r e respectively pledged.
Gold coin and bullion__ $716,532,989
Silver dollars
201, 534, 213
Silver dollars, 1 8 9 0 — ' 1, 576,184

Gold
certificates
standing
Less amount
in
Treasury

out$795, 848, 929
the
" 79,315,940

Net
Silver certificates
standing
Less amount
in
Treasury
-

716, 532, 989
out202> 578, 683
the

"Net
T r e a s u r y notes (1890)
outstanding
Less amount in the
Treasury
NetTotal

919, 643, 386

Total

1, 044, 470
201, 534, 213

1, 576,184

1,576,184
919, 643, 386

1 Exclusive of $1,374,014.56 for 1920 additional compensation, other payments of
$144,387.34 on account of the Postal Service, and $130,128,458.02 for deficiencies in
the postal revenues paid from the general fund; grants from the Treasury of $6,519,683.59 transferred to the civil-service retirement and disability fund ; and $26,015,215.53
paid from prior postal balances.




SECRETARY OF THE TREASURY.

137

Gold fund, Federal Reserve Board.
Gold coin and bullion

$1,537,856,895.45
Sinking fund.

The appropriation available during the fiscal year 1921 for the
purposes of the sinking fund was $256,230,010.66, of which expenditures were made amounting to $254,844,576.50, resulting in the retirement of $261,250,250 face amount of Victory notes. F u r t h e r details
as to purchases appear elsewhere in this report.
CONDITION OF THE TREASURY JUNE 3 0 , 1 9 2 1 .

The public debt of the United States at the close of the fiscal year
1921 is set forth in detail, as follows:
Interest-bearing debt:
•
i
Loan-of 1925, 4 per cent
$118, 489, 900. 00'
Consols of 1930, 2 per cent
599, 724,050.00
Panama Canal loan, 2 per cent
74,901, 580. 00
Panama-Canal loan, 3 per c e n t —
50,000,000.00
Postal savings bonds, 2^ per cent
11, 718, 240.00
Conversion bonds, 3 per cent
28, 894, 500.00
Certificates of indebtedness
— — 2, 699,330,450. 00
Treasury (war) savings securities—
694,105,410.37
First Liberty loan, 3i per cent
— 1, 410,074,250. 00
First Liberty loan converted, 4 per
cent
17, 982, 800. 00
First Liberty loan converted 4^ per
cent
520,709,600. 00
First Liberty loan second converted,
4i per cent
.3,492,150.00
Second Liberty loan, 4 per cent
77, 870,150.00
Second Liberty loan converted, 4^
per cent
3, 238, 666,400. 00
Third Liberty loan, 4i per cent
3, 611, 560, 300. 00
Fourth Liberty loan, 4i per cent
6, 354, 860, 350. 00
Victory Liberty loan, 3 | and 4 | per
cent—
3, 913, 780, 350.00
Treasury notes, series A-1924
311,191, 600. 00
-—
— $23, 737, 352, 080. 37
Debt on which interest has ceased:
Funded loan of 1891
20, 800. 00
Loan of 1904—
13,050.00
Funded loan of 1907
380, 800. 00
Loan of 1908-1918
376, 660.00
Refunding certificates
10,350.00
Old debt
•
—
893,960.26
Certificates of indebtedness, matured
9, 244, 000. 00
10,939,620.26




138

REPORT ON T H E FINANCES.

Debt bearing no i n t e r e s t :
United States notes (greenbacks),
less gold reserve
.
B a n k notes, redemption account
Old demand notes
F r a c t i o n a l currency

$193, 701, 990. 37
32, 204, 594. 00
53,012.50
1,999,310. 90
$227,958,907.77

Total interest and
noninterest
bearing debt, exclusive of certificates and notes offset by coin
and bullion (gross debt)
Cash in the T r e a s u r y J u n e SO, 1921.
[From revised statements.]
Reserve f u n d :
Gold coin a n d bullion—"
—
Trust funds:
Gold coin and bullion
Silver dollars
Silver dollars of 1890
Total

23,976,250,608.40

$152, 979, 025. 63
716, 532,989.00
201, 534, 213. 00
' 1, 576,184. 00

—
-

919, 643, 386. 00

»
Gold fund. Federal Reserve B o a r d :
Gold coin and buUion.
General f u n d :
In T r e a s u r y ofiices—
Gold
—
S t a n d a r d silver doUars
United States notes
F e d e r a l reserve notes
F e d e r a l reserve bank notes
National-bank notes
Subsidiary silver coin
Minor coin
Silver bullion ( a t cost)
Unclassified
(unassorted
currency, e t c . ) -Public debt paid, awaiting reimbursement

_

1, 537, 856, 895. 45

$263,015,170. 02
10, 624, 648. 00
4, 031, 479. 00
4,719,921.00
2, 422,847. 50
248, 974. 50
9, 663, 502. 04
2,392,673.78
56,720,406.41
3,141,005.13
727, 446. 76
357, 70S, 074.14

In Federal reserve banks
In t r a n s i t
^_—

43, 475, 862. 73
30, 083, 061. 41
•

In special depositaries—
Account of sales of T r e a s u r y
notes and certificates of indebtedness
I n national-bank depositaries—
T o credit of T r e a s u r e r .of t h e
United States
To credit of other Government
officers
In t r a n s i t —




73,558,924.14

395, 738, 063.16

8,207,647.02
16, 036, 064. 70
2, 440, 380. 72
26, 684, 092. 44

SECRETARY OF THE TREASUEY.
•General fund—Continued.
I n t r e a s u r y of Philippine Islands—
To credit of T r e a s u r e r of t h e
United States
I n foreign depositaries—
To credit of T r e a s u r e r of the
United States
T o credit of other Government
officers'_

.

139

$7,917,707.88

$710,262.94
51, 548, 267. 84
52, 258, 530. 78
913,865,392.54

Deduct current liabilities—
National - b a n k
note 5 per cent
fund
$18, 495, 044. 98
Less n 0 t e s in
process of redemption
13,490,886.48
T r e a s u r e r ' s checks o u t s t a n d i n g Post Office D e p a r t m e n t balance—
B o a r d of trustees, Postal SaA^ings System balance
Balance to credit of postmasters, clerks of courts, disbursing ofl&cers, etc
Undistributed assets of insolvent
national banks
Deposits for—
Redemption of Federal reserve notes (5 per cent
fund, gold)
Redemption of F e d e r a l reserve bank notes (5 per
cent fund)
Retirement of additional circulating notes, act of May
30, 1908
Miscellaneous redemption accounts
1
—

5, 004,158. 50
298,047.10
18,769,940. 53
4,121, 544. 01

77,659,580.48
1, 630, 871. 72

2.59,178, 087. 04

.9,442,096.55

67, 560. 00
4, 795,176. 84
380,967,062.77

Balance in the T r e a s u r y J u n e 30, 1921, as per statement of the public debt of the United States Govment

532, 898, 329. 77

* This amount has been largely reduced since the close of the fiscal year.




140

REPORT ON THE FINANCES.
Comparison of receipts, fiscal years 1921 and 1920.
1921

1920

Increase, 1921.

Decrease, 1921.

Customs
$308,025,102.17
8323,536,559.25
$15,511,457.08
Internal revenue:
728,798,329.85I n c o m e a n d profits t a x e s . . 3,228,137,673.75 3,956,936,003.60
Miscellaneous
1,351,835,935.31 1,442,213,241.46
90,377,306.15
Sales of p u b h c l a n d s
1,530,439.42
1,910,140.20
379,700.7a
S979,923.20
1,172,705.64
192,782.44
P a s s p o r t fees
4,005,676.61
Consular fees
5,676,850.61
1,671,174.00
Profits on coinage, buUion de240,597.82
12,369,612.23
posits, etc
12,610,210.05
T a x on circulation of n a t i o n a l
330,910.88
banks
4,799,615.73
4,468,704.85
37,078,988.55
Food A d m i n i s t r a t i o n
37,078,988.55
I n t e r e s t on loans to foreign
Governments
:
3,751,433.43
14,575,873.48
18,327,306.91
I n t e r e s t on foreign obhgations,
sale of s u r p l u s p r o p e r t y , W a r
Department
12,216,329.06
485,179.87
12,701,508.93
P r i n c i p a l p a y m e n t s on foreign
loans
71,045,188.47
12,633,034.91
83,678,223.38
5,668,852.42
10,987,423.67
I n t e r e s t on p u b l i c deposits
16,656,276.09
P r e m i u m o n converted a n d
11,624,659.99
war-risk i n s u r a n c e
10,427,122.66
22,051,782.65
C u s t o m s fees, fines, p e n a l t i e s ,
services of officers, etc
1,096,077.24
• 77,208.39
1,173,285.63
I n t e r e s t on l o a n s t o railroad
companies
2,879,873.33
2,963,873.33
1 84,000.00
Sale of w a r supplies, W a r De118,687,180.9a
partment
300,285,959.76
181,598,778. 78
P a y m e n t b y G e r m a n Govern7,807,791.82
m e n t m i d e r t e r m s of armistice
3,346,675.40
11,154,467.22
Interest on a d v a n c e p a y m e n t s
1,830,639. 31
to contractors
2,498,022.36
667,383.05
D o n a t i o n of r o y a l t y on m a c h i n e
518,961.51
guns
1,304.61
520,266.12
Decrease of c a p i t a l stock U n i t e d
250,000,000. oa^
s t a t e s Grain Corporation
350,000,000.00
100,000,000.00
F r o m operations a n d disposal
of properties, U n i t e d S t a t e s
820,819. 63
H o u s i n g Corporation
3,419,235.54
4,240,055.17
F r o m District of C o l u m b i a
145,757.25
415,349.04
561,106.29
sources
Sale of explosive p l a n t , N i t r o ,
700,000.00'
1,400,000.00
700,000.00
W ; Va
Forest
Service, coopisrative
2,044,592.13
98,550. 95.
1,946,041.18
fund
641,584.90
24,786.94
666,371. 84
E a r n i n g s of r a d i o service
N a v a l p e t r o l e u m reserve l a n d s ,
3,117,600. 00
3,117,600.00
oil-leasing a c t
5,193,548. 55
5,193,548.55
P a s t p r o d u c t i o n s , oil-leasing a c t
F u t u r e p r o d u c t i o n s , oil-leasing
1,414,567.69
1,414,567.69
act
•.
Work done b y W a r Depart182,269.48527,053.71
344,784.23
ment
640,154. 83
295,146.56
935,301.39
R e n t of p u b l i c buildings (AVar).
N a v y h o s p i t a l a n d clothing
942,099.42
1,532,478.37
2,474,577.79
funds, fines, forfeitures,"etc..
Sales of o r d n a n c e m a t e r i a l s ,
1,063,964.04
169,049.92
1,233,013.96
etc. ( W a r )
144,408.54
1,609,351.29
1,753,759.83
L a n d fees
Sales of w a r s u p p h e s , N a v y
7,182,312.04
8,986,649.41
1,804,337.37
Department
2,934,784.503,009,737.54
74,953.04
Sales of n a v a l vessels
164,955.63
219,320.65
384,276.18
R e v e n u e s of n a t i o n a l p a r k s
90,721.66
2,696,502.46
2,6.05,780.80
Fees o n l e t t e r s p a t e n t
R e t u r n of a d v a n c e s t o reclama1,000,000.00
1,000,000.00
t i o n fund
25,730.37
94,376.62
68,646.25
D e p r e d a t i o n s on p u b h c l a n d s . .
Deposits for s u r v e y i n g p u b l i c
38,888.65^
101,213.16
62,324.51
lands
—
Oregon a n d Cahfornia l a n d
245,737.73
363,802.04
g r a n t fund
Proceeds of t o w n sites, etc.,
44,811.26.
77,155.19
32,343.93
R e c l a m a t i o n Service
71,036.03
C o m m e r c e collections
234,868.81
305,904.84
"2,*286,*579.*9l
Forest-reserve fimd
4,871,877.84
2,591,297.93
2,848,648.14
I m m i g r a n t fmid
2,919,245.55
5,767,893.69
421,062.66
N a t u r a h z a t i o n fees
491,538.50
912,601.16
1 E x c l u s i v e of $4,369,607.49'interest received on a c c o u n t of loans t o railroads u n d e r section 210 of thfr
t r a n s p o r t a t i o n a c t of 1920, a n d $26,415,163.88 i n t e r e s t collected u n d e r t h e provisions of t h e F e d e r a l - c o n t r o l
a c t of Mar. 21 1918, w h i c h a m o u n t s were credited, respectively, t o t h e revolving funds, " L o a n s t o r a i l r o a d s ' ' a n d ' ' F e d e r a l control of t r a n s p o r t a t i o n s y s t e m s . "




SECRETARY OF THE TREASURY.

141

Comparison of receipts, fiscal years 1921 and 1920—Continued.
1921
Proceeds of seal and fox skins..
Alaska fund
Judicial fees,, fines, penalties,
etc
Surplus postal revenues, prior
years
Estimated increased postage...
Bales of Government property..
Rent of public buildings,
grounds, etc
Sales of lands and buildings
Bales to Indians
Franchise tax- (surplus earnings of Federal reserve banks).
District of Columbia, general
receipts
:...:
Funds contributed for river
and harbor improvements—
Reimbursements on account
of expenditures made for
Indian tribes..'.
Assessments on Federal reserve banks, for salaries, etc..
Assessments on national banks
for expenses of examiners
'Liquidation of capital stock.
Federal land banks
Discount on bonds, notes, and
certificates purchased
Interest on farm loan bonds —
Miscellaneous
Panama Canal tolls, etc

1920

$1,024,886.81
174,329.90

$1,241,648.25
213,121.83

4,382,676.51

3,077,945.57

356,550.78

300,000.00
4,913,000.00
12,647,092.24

1,083,000.85
246,260.00
383,246.87

429,751.42
347,986.96
226,362.65

Increase, 1921.

Decrease, 1921.
$216,76L44
38,79L93

$1,304,730.94
.300,000.00
4,913,000.00
12,290,541.46
653,249.43
"""156," 884.'22'

60,724,742.27

2,703,893.63

58,020,848.64

14,439,985.93

11,446,050.58

2,993,935.35

3,774,947.68

2,428,920.65

101,726.96

1,346,027.03

33,729.48

77,077.70

4,819,339.72

3,229,366.98

1,589,972.74.

1,583,037.11

1,181,196.05

401,841. 06

954,835. 00

610,299.00

344,536.00

10,675,194.55
8,306,075.00
6,690,105.51
11,914,361.32

66,461,707.27
6,159,825.00
4,634,959.30
9,039,670.95

2,146,250.00
2,055,146.21
2,874,690.37

43,348.22

55,786,512.72

TRUST F U N D S .

Department of State:
Miscellaneous trust= funds..
War Department:
Army deposit funds
Soldiers' Home permanent fund
Preservation of birthplace
of Abraham Lincoln..."...
Navy Department:
Navy deposit fund
Marine Corps deposit fund .
Navy pension fund
Interior Department:
" Proceeds of Indian lands...
Indian moneys, proceeds
of labor
Miscell an ecus trust f unds...
Personalfunds of patients,
St. Ehzabeths Hospital..
Pension money, St. Elizabeths Hospital
©istrict of Columbia:
Miscellaneous trust fund
deposits
Washington
redemption
fund
JPolice arfd firemen's relief
fund
'Other trust funds
Teachers' retirement fund
deductions
:
.T)educt—
Moneys covered by warrant in year subsequent
to the deposit thereof
AddMoneys received in fiscal
year but not covered by
warrant
Total ordinary receipts.




335,211.57

10,

158,248.70

1,634,

821,009.01

408,

2,040. 00

62,
78,
1,

1,475,871.15
412,432.35

2,

98,986.40
102,689.37
2,863.53
1,319,51'6. 82

324,239.64

20,443,157. 66
909,301. 27
210,934.26
74,075.27

36,921.21
24,548.70
870. 01

2,416,492.24
24,633,
813, 152.

1,096,975.42
96,148. 51

236,
67, 607.

4,190,670.46
25,872. 47

6,467.50

826,234.80

674,542.12

148,826.20

199,945.20

51,119.00

161,168.67
26,253.68

166,325.98
27,945.82

5,157.31
1,692.14

192,847.75
5,585,475,693.85

151,692.68

192,847.75
;, 705,044,690.09

1,105,240.83

1,735,493.29

5,584,370,453:02

6,703,309,196.80

146,592.21

1,105,240.83

5,584,517,045.23

6,704,414,437.63

, 194,972,846.79.

1,314,541,843.03

630,252.46
194,972,846.79

1,313,911,590.57
958,648.62

194,972,846.79

1,314,870,239.19

142

REPORT ON THE FINANCES.
Comparison of receipts, fiscal years 1921 and 1920—Continued.
1921

Increase, 1921.

1920

Public debt:
1 $230. 00
F i r s t L i b e r t y loan . . .
1 920.00
Second L i b e r t v loan
498,492.50
Third Liberty'loan
1 $2,213.00
5,078,726.00
F o u r t h L i b e r t y loan
1 12,730.00 1,027,542,058. 23
Victory L i b e r t y l o a n . . .
311,191,600.00
T r e a s u r y notes
Certificates of i n d e b t e d n e s s . 8,486,964,950.00. 14,728,725,968. 53
T r e a s u r y (war) savings se73,240.467.03
26,418,352.19
curities.
189,400. 00
178,880.00
P o s t a l savings b o n d s .
17,071,987. 50
40,186,945.00
B a n k - n o t e fund

•

Decrease^ 1921.

$230.00
920. 00

""3ii,'i9i,'66o."66"

$498,492.50=5,080,939.00
1,027,554,788.236,241,761,018.53.
46,822,114. 84
10,520. 00;

23,114,957. 50

15,852,345,949. 79

334,307,707. 50

7,321,727,873.10'

T o t a l receipts, exclusive
14,449,442, S29. 42 22,556,760,3S7.42
of p o s t a l
437,150,212.33
453,491,274.70
P o s t a l revenues

529,280,554. 29
26,341,062.37

8,636,598,112. 29-

T o t a l receipts, including
14,912,934,104.12 22.993,910,599.75
postal

555,621,616.66

8,636,598,112.29'

T o t a l p u b h c d e b t receipts. 8,864,925,784.19

^ Counter entries.

Comparison of disbursements, fiscal years 1921 and 1920.
1921

Increase, 1921.

1920

Decrease, 1921.

CIVIL ESTABLISHMENT.

Legislative:
Senate
•
H o u s e of R e p r e s e n t a t i v e s . .
Legislative, m i s c e l l a n e o u s . .
Public Printer
L i b r a r y of Congress
Botanic Garden

$2, 470,110.61
6,618,808.00
106, 307. 27
8,-316, 080. 91
886, 625. 78
82, 933. 65

B u r e a u of Efficiency
AVar T r a d e B o a r d
AVar I n d u s t r i e s B o a r d .
C o m m i t t e e on P u b l i c I n formation
Alien P r o p e r t y C u s t o d i a n . .
W h e a t g u a r a n t y fund
B i t u m i n o u s Coal Conimis- sion
Total executive p r o p e r . . .

$9,466. 74
9,071. 21

19, 739, 707. 70

18, 537. 95

221, 495. 79
,

45
93
77
07
04
44

18, 480, 866. 22

T o t a l legislative
Executive proper:
Salaries a n d expenses
Rehef,
etc.,
American
citizens i n E u r o p e
E u r o p e a n food rehef
1
Salaries
and
expenses,.
A n t h r a c i t e Coal Commission
U n i t e d States Tarifi C o m mission
T e m p o r a r y g o v e r n m e n t for
West Indian Islands
N a t i o n a l security a n d de-

$2, 587, 742.
7, 059, 051.
222, 937.
8, 918, 954.
877,159.
73, 862.

239, 356. 33

9,147. 74
1, 658, 829. 74

i'5,466.S0
93, 236,117. SO

$117,631.84
440,243. 93:
116, 630.50'
602,873.16.

1,277,379.43

17, sm. 54
14,614. 54
91,577,288.06:
28,195. 44

28,195. 44
311,629.55

269, 394. 89

42,234. 66

343, 440. 00

200, 000. 00

143,440. 00

14, 303. 90
144.528.13
659.088.14
11,121, 701. 03
1, 953. 75

1 23, 298.38
152, 907. 92'
554, 453. 63
1 273,875..82
16, 669.66

104, 634. 51

64, 523. 52
462, 235. 74
1 4, 053. 72
2,793,626.69

'

1351,711.76
803,945.08
350, 000,000.00
-

37,602.28
8, 379. 79'
847,825.21'
14,705. 91
416, 235. 28
341,709. 34
350,000,000.00
25, 312. 38-

21, 258. 66

444,839, 751. 21

786, 956.71

442,833,081.23-.

1 Excess of repayments.
N O T E . — T h e t e r m " Disbursements " a s used in these tables is on the basis of warrants^
issued (net) and includes unexpended balances t o the credit of disbursing officers a t the
end of the. year, but not expenditures under such unexpended balances a t the beginning of
the year.




SECRETARY OF THE TREASURY.

143

Comparison of disbursements, fiscal years 1921 and 1920—Continued.
1921

1920

Increase, 1921.

Decrease, 1921.

CIVIL ESTABLISHMENT—contd.
D e p a r t m e n t of S t a t e :
Salaries a n d expenses
Foreign i n t e r c o u r s e D i p l o m a t i c salaries

$1, 313,265. 94

$1,417,142.61

$103,876.67

1,329,126.01
2, 201,137.61

1, 389,459. 79
2, 382, 926. 36

60, 333. 78
181,788. 75

967, 353. 41
431,219.18

1,648,211.58
569,633. 31

680, 858.17
138,414.13

695,126. 86

932,436. 30

237, 309. 44

252, 615. 98

1,350,666.49

1,098, 050. 51

357,145. 25

187, 846. 42

100,000.00

100,000. 00

1 5, 445.17

83, 389. 80

C o n t i n g e n t expenses of
foreign missions
P o s t allowancp^
Contingencies of conEmergencies arising in
the Diplomatic a n d
T r a n s p o r t a t i o n of d i p lomatic a n d consular
ofRcers
I n t e r n a t i o n a l U n i o n of
American Republics.
Relief of A m e r i c a n citizens i n Mexico a n d
Germany
R e p r e s e n t a t i o n of interests of foreign Governments
Relief of A m e r i c a n seamen
P a y m e n t to P a n a m a . . .
National security a n d

T o t a l D e p a r t m e n t of
State
Treasury Department:
Salaries, Secretary's office
a n d divisions thereof
C o n t i n g e n t fund for Secretary
I n t e r n a t i o n a l H i g h Commission
C o n t i n g e n t e x p e n s e s of
Second
Pan
American
F i n a n c e Conference
C u s t o m s Service—
Collecting
customs

88, 834. 97

2,003. 77

1 6, 621. 00

S, 624. 77

208,184. 46
250,000.00

177, 278. 74
250,000.00

30, 905. 72

1 37,419.37
397,155.64
62,421. 70

2,698,516. 97
404,562. 79
4,838.35

57,583.35

8,523,891.27

13,590,288. 51

266,412.67

1,653,141.83

•
Miscellaneous i t e m s
T r u s t funds

S169, 298. 83

1,564,355. 97

88,785. 86

2,735,936.34
7,407.15

5,-235.42

5,235.42

n.86

22,982. 43

22,970. 57

946,390.82

869,098.91

821.27

43,922.05

77,293."91
43,100.78

10,813,748. 57
excess

10,023,315. 74

790,432.83

12,522,339.74

Refunding

7,332,629. 50

5,189,710.24

10,948,'364.23

19,835,252.63

9,536.42
38,199.46

8,460.60
57/605. 39

1,075.82

33,138,636.45
30,503,919. 08
13,942.67

27,367,040.12
18,654,341.32
20,224. 56

5,771,596.33
11,849,577. 76

6,819,486.23

2,065,603. 38

4,753,882.85

358,184.42
3,407,596.08
1,838,774.20
17,812,997.31
.952,307.69

301,082. 64
3,171,624.62
1,989,771.68
21,415,757. 03
495,792. 75

57,101. 78
235,971. 46

of

D e b e n t u r e s or d r a w backs
C o m p e n s a t i o n i n lieu
MisceUaneous r e f u n d s . .
Internal Revenue ServiceE x p e n s e s of collecting.
Refunds a n d rehefs
Miscellanpons
' E n f o r c e m e n t of n a r cotic a n d n a t i o n a l
prohibition acts
Suppressing counterfeiting
MisceUaneous offices
P u b l i c H e a l t h Service
Medical a n d h o s p i t a l services
:

5,332,809.91

35,437,847.37

8,886,888.40
19,405.93

6,281.89

150,997. 48
3,602,759.72
456,514.94
35,437,847.37

1 Excess of repayments.
NOTE.—The term " Disbursements " as used in. these tables is on the basis of warrants
issued (net) and includes unexpended balances to the credit of disbursing officers at the
end of the year, but not expenditures under such unexpended balances at the beginning of
the year.




144

REPORT ON TFIE FINANCES.
Compai'ison of disbursements, fiscal years 1921 and 1920—Continued.
1921

,1920

Increase, 1921.

Decrease, 1921.

CIVIL ESTABLISHMENT—contd.
'Treasury Department—Contd.
W a r R i s k I n s u r a n c e i—
Salaries a n d e x p e n s e s .
Losses
Military
and
naval
compensation
MiUtary
and
naval
family allowance
Mihtary
and
naval
insurance
N a t i o n a l security a n d
defense
Medical a n d h o s p i t a l
services
• G o v e r n m e n t life i n s u r a n c e
fundInvestments
C u r r e n t expenses
"Federal F a r m L o a n Board—|
Salaries a n d e x p e n s e s . .
Engraving and printing
P a p e r , etc., for U n i t e d
States securities...."
P r e p a r a t i o n a n d issue of
F e d e r a l reserve notes
E x p e n s e s of l o a n s
•Charges on bullion sold
Loss
on silver
dollars
m e l t e d or b r o k e n u p
• Coast G u a r d
Independent Treasury
M i n t s a n d a s s a y offices
. Public b u i l d i n g s Sites,'construction, a n d
equipment
Cm'rent m a i n t e n a n c e . . .
Salaries a n d expenses, n a tional-bank e x a m i n e r s . . . .
N a t i o n a l security a n d defense
Increase of c o m p e n s a t i o n . . .
MisceUaneous i t e m s
Special f u n d s ^
P h i U p p i n e special funds!
P o r t o Rico special funds]
Securities t r u s t fund

$9,553,867.07

$15,472,890.11
521,790. 82

127,416,407.31

103,278,296.60

14,855,449. 26

30,594,051.37

75,852,541,96

2 85,090,030.27

2 9,811.65

2 32,262. 21

$5,919,023.04
521,790.82
$24,138,110. 71
15,738,602.11
160,942,572.23
22,450. 56
4,989,765.46

4,989,765.46
20,558,946.94
2,526,624.08

10,132,489.10
49,915.03

208,416.75
5,572,770. 76

196,046. 01
5,779,500.57

665,710.37

690,712.35

658,605.75
14,034,731. 52
72,032. 20

92,261. 08
22,122,776.85
25,479.63

12,805,403.07
338,131. 27
1,489,619.11

10,324,940. 34
635,326.64
1,545,234.77

2,480,462. 73

8,134,344.62
7,730,920.95

6,918,375.13
7,108,693.04

1,215,969.49
622,227. 91
269,542.39

'

10,426,457.84
2,476,709.05
206,729.81
25,001.98
566,344.67
8,088,045.33
""46," 552." 57'

297,195.37
55,615.66

1,609,211.80

1,339,669.41

3 1,025,5'09.44
14,154,309.10
933,014.46

2 295,-714. 87
12,215,722.78
452,281. 58

2,014,760. 51
1,919,029.78
2 2,021,54L62

856,380. 07
286,503. 53
2 13,447.03

492,253,997.09

260,451,947.17

2,486,890. 87
2,888,168.40

2,541,022. 83
3,960,223.77

897,598.77
1,123,032. 28

681,565. 72
1,551,457. 20

216,033.05

T o t a l AVar D e p a r t m e n t . . .

7,395,690.32

8,734,269.52

216,033.05

.:Navy D e p a r t m e n t :
Salaries a n d expenses
A d d i t i o n a l employees
T e m p o r a r y office b u i l d i n g s .
Increase of c o m p e n s a t i o n . . .

1,348,134.29
1,389,624.94
56,444.63
797,632.71

939,970. 35
1,000,454.41
208,222.08
648,505. 23

408,163. 94
389.170. 53

Total N a v y Department.

3,591,836. 57

2,797,152. 07

946,461.95

1,008,856.88
685,746.83
2,533,165.98

1, 111, 137.12
673,251.40
3,049,492.10

12,495.43

593. 09
292,647.16
1,260,905.68

55,92L29
300,975.13
1,277,559.32

T o t a l Treasm-y
partment

729,764.57
.

1,938,586. 32
480,732.88
1,158,380.44
1,632,526. 25
2,008,094.59

De-

' W a r Department:
Salaries a n d expenses
A d d i t i o n a l employees
Pubhc b u i l d i n g s
and
grounds
Increase of c o m p e n s a t i o n . . .

Ilnterior Department:
Salaries
and
expenses,
office of Secretary
General L a n d Office
P u b l i c L a n d s Service
National
security
and
defense
I n d i a n Office
P e n s i o n Office

1 E x c l u s i v e of a U o t m e n t s of p a y .

278,129,553.3

46,327,503.47
54,131. 96
1,072,055.37
428,424.92
1,554,612. 25

151,777.45
149,127. 48
151,777.45

102,280.24
'*5i6,'326.*i"2
55,328.20
8,327. 97
16,653.64

2 E x c e s s of r e p a y m e n t s .

N O T E . — T h e t e r m ** D i s b u r s e m e n t s " a s u s e d i n t h e s e t a b l e s i s o n t h e b a s i s of w a r r a n t s
i s s u e d ( n e t ) a n d i n c l u d e s u n e x p e n d e d b a l a n c e s t o t h e c r e d i t of d i s b u r s i n g officers a t t h e
e n d of t h e y e a r , b u t n o t e x p e n d i t u r e s u n d e r s u c h u n e x p e n d e d b a l a n c e s a t t h e b e g i n n i n g of

7 t h e year.




SECRETARY OF T H E TREASURY.

145

Comparison of disbursements, fiscal y^ars 1921 and 1920—Continued.
1921

1920

Increase, 1921.

Decrease, 1921.

CIVIL ESTABLISHMENT—contd.
Interior Department—Contd.
P a t e n t Office
B u r e a u of E d u c a t i o n .
CoUeges for agriculture a n d
t h e mechanic arts .
Geological S u r v e y
B u r e a u of Mines
Office of S u p e r i n t e n d e n t
of Capitol B u i l d i n g a n d
Grounds
National parks
Territorial
governments..
St. Ehzabeths Hospital
O t h e r beneficiaries
C o n s t r u c t i o n , etc., of railroads i n A l a s k a
I n c r e a s e of c o m p e n s a t i o n . . .
MisceUaneous i t e m s
Special f u n d s R e c l a m a t i o n fund
R e v e n u e s of n a t i o n a l
parks
and
Hot
Springs, A r k . .
D e p o s i t s for s u r v e y i n g
publiclands
P u b H c schools, A l a s k a
fund
Civil S e r v l c e r e t i r e m e n t
fundInvestment
Other
•
Miscellaneous t r u s t f u n d s . .
Total Interior
ment

$1,643,383.75
496,569.60

$26,001.95

2,500,000.00
1,623,156.18
3,632,66L43

2,500,000.00
1,442,446.04
2,490,382.03

180,710.14
1,142,279.40

705,384.42
1,099,117.18
103,862.34
1,150,698.53
401,593.87

895,237.48
977,549.34
28,472.37
1,085,952.72
345,201.29

121,567.84
75,389.97
,
64,745.81
56,392.58

9,560,868.11
2,266,726.68
366,574.77

6,240,053.20
2,086,548.36
346,697.20

3,320,814.91
180,178. 32
19,877.57

5,950,300.54

764,538.02

82,758.81

23,308.12

66,033.22

128,362.16

73,312.51

48,592.13

8,000,000.00
3,100,000.00
183,163.27

187i865.06

48,804,923.39

28,199,495.23

$9,159.39

189,853.06

5,185,762. 52
59,450.69
62,328.94
24,720.38
8,000,000.00
3,100,000.00
4,701.79

Depart-

P o s t Offi,ce D e p a r t m e n t :
Salaries a n d expenses
Deficiency i n "postal r e v e nues
I n c r e a s e of c o m p e n s a t i o n . . .
Miscellaneous i t e m s
Additional compensation.
P o s t a l Ser%dce
Total Post
partment

$1,669,385.70
487,410.21

Office

21,570,387.51

1,968,552.02

1,869,651.83

98,900.19

130,128,458.02
345,315.77
227,648.67

114,854.21
320,886.80
375,077.97

130,013,603.81
24,428.97

1,374,014.56

35,698,400.00

134,043,989.04

38,378,870.81

1,195,708.79

12,018,557.68

7,034,708.00
4,050,922.16

6,802,667.03
3,614,947.83

3,653,315.06
1,953,124.68
1,202,400.88
440,257.79
1,869,222.34
2,241,398.22
236,346. 57
741,053.22
194,616.76

3,753,943.41
1,194,978.60
386,917.23
1,868,54L18
2,502,460.62
348,936.18
649,680.20
223,136.96

9,155,873.62
403,835. 35

1 5,085,659. 49
402,091. 52

6,872. 35

1,199,286.09

294,410.85
4,892,006.77

19S, 833.45
6,554,915.39

964,959.35

147,429.30
34,324,385.44

De-

E e d e r a l control of t e l e g r a p h
and telephone systems
D e p a r t m e n t of A g r i c u l t u r e :
Salaries a n d miscellaneous .
A n i m a l I n d u s t r y , expenses.
M e a t inspection, A n i m a l
Industry
F a r m e r s ' seed-grain l o a n s . .
Entomology, expenses
Soils, expenses .
Markets expenses
Plant Industry, expenses..
P u r c h a s e of seeds .
Biological Survey, expenses.
Orop E s t i m a t e s , e x p e n s e s . .
Procuring, etc., n i t r a t e of
soda
P u b l i c R o a d s , exp'enses
Stimulating
agriculture
a n d facilitating d i s t r i b u t i o n of p r o d u c t s
Office of F a r m Management
F o r e s t Service

130,136,932.97

34,471,814.74
10,822,848.89

232,040.97
435,974.33
100,628.35
1,953,124.68
7,422.28
73,340.56
681.16
261.062.40
112,589.61
91,373. 02
28, 520.20
14,241, 533.11
1,743. 83
1,192, 413.74
95, 577.40
1,662,908.62

1 Excess of repayments.
NOTE.—The term " Disbursements" as used in these tables is on the basis ol! warrants
issued (net) and includes unexpended balances to the credit of disbursing officers at the
end of the year, but not expenditures under such unexpended balances at the beginning of
the year.
70073—FI 1921- -10




146

EEPOBT ON T H E FINANCES.

Comparison of disbursements, flscal years 1921 and i^gO—Continued.
1921

1920

Increase, 1921.

Decrease, 1921.

CIVIL ESTABLISHMENT—contd.

Department of Agriculture—
. Continued.
Acquisition of lands for protection of watersheds,
navigable streams
Cooperative construction,
rural post roads, etc
National security and defense
Federal Horticultural
Board .
Bureau of Chemistrv
States Relations Service,
expenses
Cooperative extension work
Weather Bureau, expenses.
Increase of compensation...
Cooperative work, Forest
Service .
Enforcement of insecticide
act
Preventing spread of European corn borer
Special funds—
Pajmaonts ' to States
and Territories from
National
Forests,
fund
Roads and trails for
States..
MisceUaneous special
funds...-

$1,179,472. 82

$663,271.43

$516,201.39

62,498,203.00

24,555,179.83

37,943,023.17
$119,365.75'

1136.45

119,229.30

649,420.72
913,637.92

595,084. 50
893, 745.66

54,336.22
19,892.26

3,112,941.70
5,031,577.73
1,532,492.10
3,012,856.60
2,197,977.24

3,057,075.57
4,471,593.71
1,512,657.06
2,812,614; 59
1,635,903.65

55,866.13
559,984.02
. 19,835.04
200,242.01
" 562,073.59

108,047.63

84,570.58

375,-954.07

23,477.05
375,954.07

'
1,180,063.13

1,069,886. 88
•465,828.06

363,433. 08
73,391.17

110,176.25

-

102,394.98:

78,749.67

5,358. 5 =
0

Total Pepartment of
Agriculture

120,599,097.08

66,611,066.69

Department of Commerce:
Salaries and expenses
Bureau of Standards
Census Office
Foreign and
Domestic

355,190. 56
1,634,649.52
6,257,455.53

375,495.14
1,736,478.76
13,667,102.58

850,577.23
1,925,36L92.
9,719,309.48
1,233,278.92
316,760.58

860,273.94
1,820,607.18
8,896,988.95
1,354,342.31
257,587.30

12,086.30
2,519,707.52
91,182.12

3,563,705.59
2,213,087.16
38,200.29

968,636.58
8,392.79

969,643.68
11,533.04

25,892,589.05

35,765,045.92

1,345,850.74

391,357.08
257,144.12
668,668.71
1,111,02L81
2,926,434.11
310,846.11
254,677. 04
232,660.04

400,080. 70
301,749. 25
611,323.82
265,732. 41
2,530,893.99
*
135,000.00
266,358.27
390,485.02

57"344.'89'
844,289.40
395,540.12
175,846.11

Commftrcft.,

..

' Coast and Geodetic Survey.
Lighthouse Establishment.
Bureau of Fisheries
Bureau of Navigation
..
National
security
and
defense
Increase of comneiisation
Fish hatcheries*
S t e a m b o a t - Inspection
Service . . . .
Miscellaneous i t e m s . . . .
Total Department
Commerce

of

Department of Labor:
Salaries and expenses
Bureau of Labor Statistics.
Bureau of Naturalization
Bnrftan nf I m m i grati nn

Regulating immigration
Immigran t stations.
Children's Bureau
Employment service .
National security, and defense
War emergency employment service
:
War labor administration
Increase of compensation..
Miscellaneous
Total Department of.Labor

3,585,242.15

57,573,872.54

o

104,754. 74
822,320. 53

20,304. 58
101,829.24
7,409,647.05
*

9,696. 71
121,063.39

59,173. 28
3,551,619.29
306,620.36
52,981.83
1,007.10
3,140.25
11,218,307.61
8,723.62
44,605.13

11,681.23
157,824.98

60,944.38

144,023. 89

83,079. 51

1 326.15
378.02
016,655.95
210,395. 66

290,130.24
190,371.27
518,415.57
79,666.72

290,456.3»
189,993.25
98,240.38
130,728.94

7,040,856, 88

6,125,23L15

1,701,989.84

786,364.11-

1 Excess of repayments.
N O T E . — T h e term " Disbursements " as used in these tables is on the basis of w a r r a n t s
issued (net) and includes unexpended balances to t h e credit of. disbursing officers a t the
end of t h e year, but not expenditures under such unexpended balances a t the beginning of
t h e year.




SECRETARY OF THE TREASURY.

147

Comparison of disbursements, fiscal years 1921 and 1920—Continued.
1921

1920

Increase, 1921.

Decrease, 1921.

CIVIL ESTABLISHMENT—contd.

T)epartment of Justice:
Salaries and expenses
Salaries of justices, assistant
attorneys, etc
Court of Claims
National secmity and defense
Salaries, fees, etc., of marshals
Fees of witnesses
Salaries and fees, district
attorneys
Fees of jm'ors
Fees of clerks
Fees of commissioners
Support of prisoners
Pay of bailiffs
Miscellaneous expenses,
United States courts
Detection and prosecution
of crimes
Penitentiaries
Increase of compensation...
Misceiianeous items
Total Department of Justice
Independent bureaus and offices:
. Interstate Commerce Commission
'
Federal control of transportation systems, and
transportation act, 1920..
Smithsonian Institution...
National Museum
,
Rock Creek Parkway Commission
,
Zoological Park
Salaries, etc.. Federal Reserve Board
Council of National Defense
War Finance Corporation..
Board of Mediation and
Conciliation
,
Advisory Committee for
Aeronautics
United States Employees'
Compensation Commission
,
Board for Vocational Education.:
United States Shippmg
•

$1,034,439.04

$1,058,250.93

4,050,527.23
84,498.62

3,365,206.95
78,143.02

123,811. 89
$685,320.28
6,355. 60

1 5,526.45

38,325. 82

43.852.27

2,184,726.74
1,131,436.25

2,216,195.85
1,176,202.12

31,469.11
44,765. 87

851,901.32
1,219,765.47
1,897.11
331,451. 31
953,425. 88
231,849. 54

886,500. 60
1,229,347.15
124,604.89
280,850. 20
1,431,777.82
231,493. 06

34.599.28
9,581.68
122,707.78
50, OOL 11
478,351. 94
" " 3 5 6 . " 48'

612,676.72

556,822. 03

2,320,732.87
1,458,620.79
778,755.81
406,272.28

2,681,574. 64
2,141,156.97
762,752.88
408,040.70

17,647,450. 53

18,667,245.63

814,491.09

6, 097, 061.30

5, 847,961. 96

249, 099. 34

739,019,362.64
282,101. 02
413, 999.44

1, 038,614,901.18
269,712.77
407, 209.73

12, 388. 25
6,789. 71

140,619. 56
200, 407. 81

231, 059. 22
120, 094. 94

80, 312. 87

4,493,633.34
66,636. 05

2,608, 384. 26
107, 758. 20
150, 000, 000. 00

55,854..69
360,841.77
682,536.18
16,002.93
1,768.42
1,834,286.19

299, 595, 538. 54

90, 439. 66,
1, 885,249. 08
41,122.15
15a 000, 000. 00

20,945.97

26,116. 85

5,170. 88

184,600.52

229, 886.11

45, 285. 59

2, 529,334.29

2, 239, 801. 95

289,532.34

104,672, 029. 43

34, 984, 423.90

69,687, 605.53

Board-

Salaries and expenses-.
Emergency shipping
fund
National security and
defense
Food and Fuel Administrations—
., Salaries and expenses..
National eecurit}'- and
defense
United S t a t e s H o u s i n g
Corporation
^
Interdepartmental ' Social
Hygiene Board
, Federal Trade Commission
State, War, and Navy Department BuUdings..

365,977. 55

462,911.10

96,933. 55

92, 563,969. 57

467,238,136.59

374,674,167. 02

1 43,163. 24

1, 393, 501.66

1, 436,664.90
- 98,425. 76

21,701.65

120,127.41

1 271,077.60

11,753, 986. 52

1,482,908. 92

.1,322, 237.63

1 2,038,712.77

3,360,950. 40

932,609. 70
1,010,327.37

1,791, 071. 03
1,021,653.58

858,461. 33
11,326.21

2, 204, 713. 55

2, 483,462. 33

278, 748. 7S

I Excess of repayments.
N O T E . — T h e term " Disbursements " a s used in these tables is on the basis of w a r r a n t s
issued (net) and includes unexpended balances to the credit of disbursing officers a t t h e
end of the year, but not expenditures under such unexpended balances a t the beginning of
t h e year.




148

REPORT ON THE FINANCES.
Comparison of disbursements, fiscal years 1921 and 1920—Continued.
1921

CIVIL ESTABLISHMENT—contd.
Independent bureaus and offices—Continued.
United States PU.erim Tercentenary Commission...
Other independent offices..

1920 '

Increase, 1921.

Decrease, 1921.

$242,645. 70
420, 788.61

$142,052.47

$242,645.70
. 278,736.14

956,891,461.86

1, 706, 547, 527.95

77,576,218.28

20,877, 085.79

18, 547,698.98

2,329,386. 81

846, 832.35
186,260. 08

710,488.48
149,499.86

136,343.87
36, 760. 22

8,873.07

9,403. 21

798,484.91

644, 771.98

156,733.29

194,721.37

169, 581. 69

147,143.92

22,437.77

160,000.00
26,393.92
12, 013. 84

9,693.97

160,000.,00
26,393.92
2,319.87

23, 242, 259. 54

20,413,42L77

2,867,355.39

38,517.62

Total civil establish11,868,398,844. 32 12,682,879,579.01
ment

573,951,054.08

1,388,431,788.77

Total independent bureaus and offices
District of Columbia:
Salaries and expenses
Special fund,s—
A\^ater department
Washington Aqueduct.
MisceUaneous special
funds
Trust fundsMiscellaneous t r u s t fund denosits
Washington redemption fund
Police and firemen's
relief fund
Teachers' retirement
fundInvestment
Other
Other trust funds
Total District of Colunibia- . -

$827,232,284.37

529. 54
153,712.93
37, 988.08

•WAR DEPARTMENT.

Military Establishment.
Quartermaster Corps
Pay, etc^ of the Army ^ . . . .
Medical Department
Ordnance Department
Engineer IDepartment
Chemical Warfare Service
Signal Service
A viation
Military Academy
Militarv posts
National Guard.
Vocational training of soldiers..
Civilian
mUitary
training
camps
Registration and selection for
rnilitary service
Increase of compensation
Miscellaneous items
Army accomit of advances
Panama Canal, fortifications,
etc. .
Total Military
lishment.

Estab-

2 111, 874,070.32
424,357,422.05
6.826.589.94
91,914,274.32
2 33,538,743.81
1,873,592.57
7, Oil, 518.70
30,913,798.28
1,410,967.17
728,132.17
7,970,815.42
3,855,419.08

326,450,587.50
348,206,924.10
9.332.837.04
286,506,697.68
43,304,345.72
622,895.87
8.035.732.05
2 24,356,590.23
1,971,370.05
991,295.09
1,675,918.61
767,574.65

76,150,497.95

438,324,657.82
2,506,247.10
194,592,423:36
76,843,089.53

1,250,696.70
55,270,388.51
6,294,896.81
3,087,844.43

1,024,213.35
560,402.88
263,162.92

27,187.25

172,007.59

144,820.34

769,385.31
15,985,110.24
1.141.333.95
20,603,527.39

2,877,482.21
18,067,158.45
1,165,418.81

2,108,096.90
82,042.21
24,084.86

2,088,007.06

3,433,592.82

472,064,272.77

1,027,225,248.01

20,603,527.39

1,345,585.76
162,657,851.79

717,818,827.03

National cemeteries..
12,401, 966.67
9, 561.125. 71
2,840,840. 96
National parks.
39, 559.32
189, 776. S
O
150,217. 48
National homes for disabled
soldiers.
5,347,136. 99
350; 255. S •
O
4,996,881.19
State homes for disabled sol1,094, 584. 44
966, 341. 66
128,242.78
diers
Medical and hospital services ..
4, 570,000. 00
4, 570,666. 66
1 Exclusive of purchase of obligations of foreign Governments and purchase of farm-loan bonds, heretofore cl assed as '' special."
2 Excess of repayments.
8 Includes payinent of allotments by Bureau of War Risk Insurance.
N O T E . — T h e term * Disbursements " a s used in these tables is on the basis of w a r r a n t s
*
issued (net) and includes unexpended balances to the credit of disbursing officers a t the
end of the year, but not expenditures under such unexnended balances a t the beginning of
t h e year.




SECRETARY OE THE TREASURY.

149

Comparison of disbursements, flscal years 1921 and'1920—Continued.
1921

1920

Increase, 1921.

Decrease, 1921.

WAR DEPARTMENT—continued.
Soldiers' H o m e i n t e r e s t account
Monuments .
B r i d g e across P o t o m a c R i v e r ,
Q eorgetown, D . C
W a r claims a n d relief acts
Miscellaneous i t e m s
Increase of c o m p e n s a t i o n
Special funds:
W a g o n roads, etc., Alaska
fund
MisceUaneous special fimds.
T r u s t funds:
P a y of t h o A r m y , deposit
fund
Soldiers' H o m e p e r m a n e n t
fund
..
Miscellaneous t r u s t f u n d s . .

' $21,777.21

$80,780. 56
55,445.67

$102, 566.77
4,809.07

575,135.00
703,885.30
441,128. 49
1,456,101. 78

440,000.00
987, 534.73
331, 539.19
817,618.93

109,589. 30
638,482.85

247, 993. 54
i:34,209.09

85,916. 57
92,660.62

162,076.97
41, 548.47

1 2,159,271.52

4,940,741. 34

1,271,876.21
1,700.00

848,612. 51
500. 00

423,263.70
1, 200.00

26,284,215.24 .

17,735,023. 80

16,082,873. 72

45,602,287,93
9,496,071. 31

34,800,217.64
12,860,335. 75

10,802,070. 29

: 3,721,963.06

2, 213,377.03

1,508,580. 03

T o t a l rivers a n d h a r b o r s . .

58,820,322.30

49,873,930.42

12,310,656.32

3,364,264.44

Total W a r D e p a r t m e n t . .

557,168,810.31

1,094,834,202.23

191,051,38L83

728,716,773.75

202,469,924.00
25,153,742.28
36,853,498.87

243,370,338.71
46,134,106.15
18,548,341.87

18,305,157.00

34,534,125.31
44,066,651.20
33,459,963.90

16,558,456.11
81,743,882.65
24,811,485.39

17,975,669.20

97,930,395.49

56,499,573.05

41,430,822.44

4,520,558.27
2 35,300,359.61
226,623,334.57
2,477,347.99
2 180,297,758.21
24,606,454.62
642,792.63
1 333,660,373.64
309,416:58
17,826'. 22
18,943,627.52

8,805,230.42
2 42,780,322.76
2,275,825.7.
2 189,353,302. 99
38,935,299. 94
200,366. 27
1140,050,309.08
521,395.40
52,965.47
4,207,810.15

1.745,015., 24
1,332,993.94
6,542, 791. 79

1,176,529.97
179,717.68
16,371,452.91

T o t a l w a r , misceUaneous,
civil

$50,636.60
135,135.00
283,649. 43

7,100,012.86

7, 533,682. 28

Eivers a n d Itarhors.
I m p r o v i n g rivers
Improving harbors
Special funds for rivers a n d
harbors

3,364,264.44

•

NAVY DEPARTMENT.
Naval Establishment.
I n c r e a s e of t h e N a v y
B u r e a u of Y a r d s a n d Docks
B u r e a u of N a v i g a t i o n
B u r e a u of C o n s t r u c t i o n a n d
Repair..
B u r e a u of O r d n a n c e
B u r e a u of S t e a m E n g i n e e r i n g . .
B u r e a u of S u p p h e s a n d Accounts
B u r e a u of Medicine a n d Surgery
M a r i n e Corps
N a v a l s u p p l y a c c o u n t fund
Naval Academy
P a y of t h e N a v y
;...
Aviation
J u d g m e n t s , Court of Claims
General a c c o u n t of a d v a n c e s
MisceUaneous i t e m s
N a t i o n a l security a n d d e f e n s e . .
Increase of c o m p e n s a t i o n
Special funds:
N a v a l hospital fund
F i n e s a n d forfeitures
Clothing fund
T r u s t funds:
P a y , Marine Corps, deposit
fund
P a y of t h e N a v y , deposit
fimd
Prize money
Total Naval EstabUshment
'.

. 40,900,414.71
20,980,363. 87

37,677,231.45
8,648,478.51

4,284,672.15
7,479,963.15
226,62.3,334.57
201,522.23
9,055,544.78
14,328,845. 32
442,426.36
193,610,064.56
211,978.82
35,139.25
14,735,817.37
568,485.27
1,153,276. 26
12,914,244.70
72,739.67

72,739.67
110,604.04

644, 278,808. 64

87,048. 93
138. 52

23,555.11

629,893,115.87

343,022,789.02

138.52
328,637,096.25

1 Excess of repa3mients.
«Includes pa3mients of aUotments by the Bureau of War Risk Insurance.
NOTE.—The term " Disbursements " as used in these tables is on the basis of warrants
issued (net) and includes unexpended balances to the credit of disbursing officers at the
end of the year, but not expenditures under such unexpended balances at the beginning of
the year.




150

REPORT ON THE FINANCES.
Comparison of disbursements, fiscal years 1921 and 1920—Continued.
1921

1920

Increase, 1921.

Decrease, 1921.

INDIAN SERVICE.

C u r r e n t a n d c o n t i n g e n t expenses
FulfUling t r e a t y s t i p u l a t i o n s . . .
Miscellaneous s u n p b r t s .
•.
I n t e r e s t o n I n d i a n trust-fund
accounts
S u p p o r t of I n d i a n s c h o o l s . .
Miscellaneous e x p e n s e s . . .
Trust funds..

P u r c h a s e of obligations of foreign G o v c r n m e n t s
P u r c h a s e of farm loan b o n d s . .
P a n a m a Canal
Pensions
Interest on the public debt

$1,360,574.47
624,044.20
729,921.66

1,129,733.11
4, 788, l i s . 33
4,570,048. 21
28, 243, 349. 96

1.290,781. 27
4\ 373,455. 28
5,061, 970. 89
27,076,084.17

1,167, 265. 79

41,470,807.60

T o t a l I n d i a n Service

$1,444,109.65
595,190.15
700,258.19

4.0, 516, 831.94

1,665,464.02

421,337,028.09
73,898,697.44
8,600,000.00
26, 887,356. 25
6,031,463.72
16,230,390. 79
213,344,204.11
260,611,416.13
996,676, 803. 75 1,024,024,440.02

10,19S 927.07
47,267,212.02

4,467,332,578. 98
D e d u c t r e p a y m e n t s received in
fiscal y e a r b u t n o t covered b y
warrant

6,139,748,221. 24

68,20t..86

6,138,299,129.26

A d d r e p a y m e n t s covered b y
w a r r a n t i n year s u b s e q u e n t
t o t h c deposit thereof

1,449,091.98
4,468,713,468.10

6,141,745,240.08

161,048.16
414,663.05
491,'922.'68

Public debt:
F i r s t L i b e r t y loan, a t 3-^- per
cent
.
1 .
F i r s t L i b e r t y loan, conv e r t e d a t 4 per cent
F i r s t L i b e r t y loan, converted at 4\ per c e n t . . . .
Second L i h e r t y loan
Second L i b e r t y loan, conv e r t e d a t 4:1 per c e n t
T h i r d L i b e r t v loan
F o u r t h L i b e r t y loan
.
Victory L i b e r t y loan
L o a n of 1908-1918
Certificates of i n d e b t e d ness, v a r i o u s r a t e s
T r e a s u r y ( w a r ) savings securities
B a n k - n o t e fund.
F u n d e d loan of 1907
MisceUaneous r e d e m p tions
Total public debt
bursements . .

711,488.36
347,440,330.65
18, 287,356.25
27,347,636. 27

1,167,156,828.04

2,839, 572,470. 30

1,167,156,828. 04

2,838,1-91, 581.18

1,380,889.12

3,446,110.82

Total ordinary w a r r a n t
disbursements 1

$28,854.05
29,663.47

1,449,091.98

4,467,264,370.12

$83,535.18

1,997,018. 84
1,167,156,828.04

2,840,188,600.02

150.00

150.00'
550.00

14,862,000.00

14,861,450.00

199,300.00
1,000.00

17,475.700.00
10,007,700.00

17,276,400.00
10,006,700.00

8,769,450.00
51,155,500.00
39,499,250.00
332,587,450.00
143,200.00

231,142,700.00
296,338,250.00
405,221,500.00
249,006,500.00
416,140.00

222,373,250.00
245,182,750.00
3G5,722, 250.00

8,552,216,500.00

15,588,704,458.53

159,731,983.18
37,460,031.00
3,600.00

199,818,880.44
23,424,164.50
22,950.00 •

83,580,950.00
272,940. oHi
7,036,487,958.53
40,086,917.26
14,036,466.50
19,350.00

3,327. 78

2,141.91

9,181,774,013.87 17,036,444,271.25

97,619,708.41

7,952,289,965.79

1,204,776,536.45

10,792,478,565.81

• 5,469.09

dis-

T o t a l disbursements,
exclusive of postal
13,650,487,481. 97 23,178,189,511.33
P o s t a l Service, pay^^ble from
postal revenues
418,722,295.05
2 463,491,274.70
T o t a l disbursements,
including postal
14,113,978,756.07 23,596,911,806.38

44,768,979^65
1,309,545,516.10

10,792,478,565.81

1 Exclusive of principal of t h e public debt and P o s t a l Service. .
2 Exclusive of $1,374,014.56 for 1920 additional compensation, other p a y m e n t s of
$144,387.34 on account of t h e P o s t a l Service, $130,128,458.02 for deficiencies in the
p o s t a l revenues paid from t h e general fund, additional g r a n t s from, t h e T r e a s u r y of
$6,519,683.59 t r a n s f e r r e d t o t h e civil-service r e t i r e m e n t and disability f u n d , . and $26,015,215.58 paid from p r i o r postal balances.
N O T E . — T h e t e r m " D i s b u r s e m e n t s ' ' a s used in these tables is on t h e basis of w a r r a n t s
issued ( n e t ) and includes unexpended balances t o t h e credit of disbursing officers a t t h e
end of t h e year, but not expenditures under such unexpended balances a t the beginning of
t h e year.




151

SECRETAR.Y OE THE TREASURY.

The follow^iDg tabulations summarize the receipts and expenditures
of the fiscal year 1921 and the estimated receipts and expenditures
for the fiscal years 1922 and 1923 on the basis of the latest information received from the Bureau of the Budget and the various departments and establishments, and shows the estimated results at the
€lose of each year:
[On basis of daily Treasury statements.!
A c t u a l , fiscal
year 1921.

Estimated,
Estimated,
fiscal year 1922. fiscal y e a r 1923.

Total

$549,678,106

$420,125,251

3,968,453,663
3,686,271,598

3,345,182,750
5,231,069,550

8,204,403,367

8,996,377,551

5,115,927,689
422,113,000
2,.760,741,170
549,678,106

3,604,980,166
387,942,200 3,791,355,750
420,125,251

3,143,415,927
369,338,800
5,231,069,550
252,553,274

8,848,459,965

Total
Expenditures:
Ordinary
P u b l i c d e b t chargeable against o r d i n a r y receipts
Other public-debt expenditures
N e t balance i n general fund a t close of fiscal year

$357,701,682
5,624,932,961
2,865,825,322
8,848,459,965

N e t balance i n general fund a t b e g i n n i n g of fiscal y e a r . .
Receipts:
Ordinary
Publicdebt

8,204,403,367

8,996,377,551

Postal Service.
Fiscalyear
1921.
Postal receipts
Postal expenditures payable from postal receipts and
grants from the Treasury
Deficiency in the postal receipts, payable from the
general fund

Estim^ated, .
Estimated,
fiscal year 1922. fiscal year 1923.

$463,491,274

$505,000,000

$546,714,000

593,619,732

553,172,270

568,223,666

1130,128,458

48,172,270

21,509,666

1 Exclusive of other payments from the general fund on account of the Postal Service araounting to
$1,518,402, grant from the Treasury of $8,519,684 transferred to the civil-service retirement and disability
fund, and $26,015,215 paid from prior postal balance^;.
NOTE.—The deficiency for 1921, and the estimated deficiencies for 1922 and 1923 shownabove, are included
in the general classification of ordiaary expenditures and estimated ordinary expenditures under the
Post Office Department on pp. 154,157, and 159. respectively.

The following statements exhibit financial transactions for the
periods stated on the basis of cash receipts and cash expenditures:




Receipts and expenditures for the jiscal years 1920 and 1921, and estimated receipts and expenditures for thefiscal years 1922 and 1928.
[On t h e basis of daUy T r e a s u r y s t a t e m e n t s . !
Fiscal y e a r 1920.

Fiscal y e a r 1921.

Fiscal year 1922.

Fiscal y e a r 1923.

EECEIPTS.

Ordinary:
$322,902,650.39
Customs
I n t e r n a l revenue—
• I n c o m e a n d profits t a x e s . $3,944,949,287.75
MisceUaneous
internal
1,460,082,286.91
revenue
5,405,031,574.6
MisceUaneous r e v e n u e 1,910,140.20
Sales of p u b h c l a n d s
F e d e r a l ' reserve
bank
2,703,893.63
"franchise t a x
I n t e r e s t on foreign obhga3,751,433.43
tions
R e p a y m e n t s of foreign
70,545,188.47
obhgations
Sale of s u r p l u s w a r s u p 309, 272, 820,17
phes
R e t i r e m e n t of c a p i t a l
stock of G r a i n Corporation
350,000,000.00
5,664, 741.45
P a n a m a Canal
222, 782, 946.48
O t h e r miscellaneous
966,631,163. 83
Tot9,l o r d i n a r y r e c e i p t s .




5,694, 565,388.88

$308,564,39L00
$3,206,046,157.74
1,390,380,823.28
4,596,426,981.02
1,530,439.42

$330,000,000.00

$275,000,000.00
$1,715,000,000.00 .

$2,110,000,000.00
1,104,500,000.00
• 3,214,500,000.00

8^,000,000.00
2,611,000,000.00

1,500,000.00

60,724,742.27

60,000,000.00

30,000,000.00

31,142,982.51

• 25,000,000.00

o

1,500,000.00

25,000,000.00

83,678,223.38

30,500,000. 00
141,200,000.00

100, 500,000.00

100,000,000.00
12,280,741.79
246,891, 610. 83

25,000,000.00
11,760,000.00
183,993,683. 00

H

30,500,000.00

183,692,848.69

o

7.000,000.00
13; 315,000. 00
195,367,750.00

>

719, 941, 5cS8. 89

478,953,663. 00

404,182,750. 00

5,624, 932,960. 91

3,968,453,663. 00

3, 345,182,750. 00

o
teJ
c/2

EXPENDrrURES.
Ordinary"(see details i n following
table)
P u b h c d e b t e x p e n d i t u r e s chargeable a g a i n s t o r d i n a r y receipts:
S u l k i n g fund
P u r c h a s e s of L i b e r t y b o n d s
from foreign r e p a y m e n t s —
R e d e m p t i o n s of b o n d s a n d
n o t e s from e s t a t e t a x e s
R e t i r e m e n t s from F e d e r a l reserve b a n k franchise t a x receipts

6,403,343,841. 21

5,115, 927,689. 30

3,143,415,927.00

3,604, 980,166.00

261,100, 250.00

272,442,200. 00

283,838,800.

72,669,900. 00

73,939,300. 00

30,500,000.00

30,500,000.

3,141,050. 00

26, 348, 950. 00

25,000, 000. 00

25,000,000.

2,922,450.00

1,000,000.00

60, 000,000. 00

60, 724, 500. 00
78, 733,400. 00

T o t a l o r d i n a r y expenditxires (including d e b t redemptions
charge a b l e
a g a i n s t o r d i n a r y receipts)
E x c e s s of receipts over e x p e n d i tures..'.
E x c e s s of e x p e n d i t u r e s over receipts




422,113,000.00

387,942,200.00

369,338,800.00

6,482,077,241. 21

5, 538, 040,689.30

3,992,922, 366.00

3,512,754,727.00

o

>

i, 892,271.61
24,468,703.00

167,571,977.00 .

O

cn
CO

154

REPORT

OJST T H E F I N A N C E S .

{Classified ordinary expenditures of the Government for the flscal years 1920
and 1921, and estimated ordinary expenditures • for the flscal years 1922 and
[On t h e basis of daily T r e a s u r y

staternents.]

Fiscal y e a r 1920.

Fiscal y e a r 1921.

Fiscal y e a r 1922.

$19,327,708. 72
Legislative e s t a b h s h m e n t
•.
6,675,517. 58
Executive proper
13,586,024.42
State Department
312,183,133.74
Treasury Department
"War D e n a r t m e n t
1,610, 587,380. 86
17,814,398.18
D e p a r t m e n t of J u s t i c e
50,049, 295.07
P o s t Office D e p a r t m e n t
736,021,456. 43
Navy Department
Interior Department
279,244,660.87
D e p a r t m e n t of A g r i c u l t u r e
65,546, 293.14
D e p a r t m e n t of C o m m e r c e
30,010, 737. 75
D e p a r t m e n t of L a b o r
5,415,358.40
United States Veterans' Bureau
United States Shipping B o a r d .
530,565,649.61
F e d e r a l control of t r a n s p o r t a tion systems a n d transporta1,036,672,157.53
t i o n act, 1920
W a r F i n a n c e Corporation
1228,472,186.61
<jrrain Corporation
3 350,328,494.70
O t h e r i n d e p e n d e n t offices a n d
59,469,305.17
commissions
.
19,944,864.70
D i s t r i c t of C o l u m b i a
1,020,251,622.28
I n t e r e s t on p u b l i c d e b t

$18,994,565.17
197,341.68
8,780,796.84
476,352,192.21
1,101,615,013. 32
17,206,418.03
135,359,108.17
650,373,835. 58
341, 769,318.59
119,837,759. 41
30, 828,761.55
8,502,509. 55

$15,984,446.00"
227,045. 00
11,406,032.00
169,871,163. 00
389,091,406. 00
16,825,568. 00
. 51,448,724. 00
478,850,000. 00
326,540,829.00
153,637,100.00
. 20,131,800.00
4,796,916.00
438,122,400. 00
73,911,081.00

Ordinary.

Total
Deduct
unclassified
ments, etc

$16,265,215. 00
227,045.00
10,432,624.00
168, 997,160. 00
• 369,902,107.00
18,415,681.00
24,866,758.00
431, 754,000. 00
326,032,022. 00
173,197,530. 00
19,939,970.00
6,301,835.00
455,232,702.00
50,495,735.00

730,711,669.98
122,028,452.12
2 90,353,4n. 42

337,679,235.00
25,000,000.00

7,000,000.00

119,943,23L84
22,558,264.16
999,144,731.35

21,739,509.00
22,275,063.00
975,000,000.00

22,563,827.00
25,070,877.00
4 975,000,000.00

5,935,221,872.54

4,981,223,744.99

3,532,538,317.00

3,101,695,088.00

•4,399,847.00

922,593.14

5,930,822,025.54
11,365,714.01

4,980,301,15L 85
16,461,409.47

3,532,538,317.00
7,219,849.00

3,101,695,088.00
7,358,839.00

421,337,028.09

73,896,697.44

29,643,546.17

16,781,320.79

repay-

Total
P a n a m a Canal
P u r c h a s e of o b h g a t i o n s of foreign G o v e r n m e n t s
P u r c h a s e of F e d e r a l farm-loan
bonds
Increase of c o m p e n s a t i o n , a l l
departments
I n v e s t m e n t s of t r u s t funds:
G o v e r n m e n t hfe i n s u r a n c e
fund
Civil-service r e t i r e m e n t
fund a n d D i s t r i c t of Col u m b i a teachers' retirem e n t fund
Total ordinary

130,723,268. 26

Fiscal y e a r 1923.

(^)
10,132,493.69.

43,033.71
6,403,343,841.21

(;)
20,325,152..88

8,161,956.87
5,115,927,689.30

35,000,000.00
22,022,000.00

26,162,000.00

8,200,000.00

8,200,000.00

3,604,980,166.00

4 3,143,415,927.00

^ Deduct excess of credits.
* T h e $100,000,000 reduction in t h e capital stock of t h e United S t a t e s Grain Corporat i o n effected Aug. 20, 1920, is reflected in. a n i n c r e a s e by t h a t a n i o u n t in both receipts and
•disbursements in t h e fiscal year 1921.
» T h e reduction of $350,000,000 in t h e capital stock of t h e United S t a t e s Grain Corporation effected a t t h e close of t h e fiscal year 1920 is reflected in an i n c r e a s e by t h a t a m o u n t
i n both receipts a n d d i s b u r s e m e n t s for t h e fiscal year 1920.
* T h i s a m o u n t does n o t include $125,000,000 of accumulated i n t e r e s t on w a r savings
•certificates, r e p r e s e n t i n g discount accrued on certificates of t h e Series of 1918 which
m a t u r e J a n u a r y 1, 1923.
5 E x p e n d i t u r e s in 1920 and 1921 on a c c o u n t of increase of conipensation a r e included
•under t h e various d e p a r t m e n t s and independent establishments.
NoTK.—Because of legislation e s t a b l i s h i n g revolving funds and providing for t h e reimbursement of a p p r o p r i a t i o n s commented upon in t h e a n n u a l r e p o r t of t h e Secretary of
t h e T r e a s u r y for t h e fiscal year 1919, p. 126 ff., t h e gross e x p e n d i t u r e s in t h e case of
•some d e p a r t m e n t s and agencies, notably t h e W a r D e p a r t m e n t , the R a i l r o a d Administration, and t h e Shipping Board, have been considerably larger t h a n above s t a t e d .
This
s t a t e m e n t does n o t include e x p e n d i t u r e s on a c c o u n t of t h e P o s t a l Service, other t h a n
^salaries and.expenses of t h e P o s t Office D e p a r t m e n t in W a s h i n g t o n , postal deficiencies, and
i t e m s a p p r o p r i a t e d by Congress payable from the general fund of t h e T r e a s u r y .




Public debt expenditures and receipts, actual, in Jiscal year 192 i, and estimated for fiscal years 1922 and 1923.
'

.

[On the basis of daily Treasury statements.!
Actual, fiscal year 1921.

Estimated, fiscal year 1922.

Estimated, fiscal year 1923.

EXPENDITURES.

Certificates of indebtedness:
Loan and. tax
:
Pittman Act
Special issues
Victory notes
Treasury (war) saviiigs securities:
Series of 1918
AU other series
Liberty bond retirements
Retirement of Federalreserve bank notes and national-bank notes
Old debt retirements
Total public debt expenditures
Public debt expenditures chargeable against ordinary receipts (as
above):
Sinking fund
Purchases of Liberty bonds from foreign repayments
Redemptions of bonds and notes from estate taxes
Retirements from Federal reserve bank franchise tax receipts

$2,485, 552, 500
43,500,000
24,000,000
332,439,450

$2,450,843, 500
160,000,000
32,854,450
1,250,000,000
100,000,000
15,000,000
55, 500,000
115,000,000
100,000

3,182, 854,170
$272,442,200
30,500,000
25,000,000
60,000,000

$261,100,250
73,939,300
26,348,950
60, 724,500

1 610,000,000
10,000,000
55,500,000
55,000,000
100,000

4,179,297,950

160, 256,308||
99,492,850
37,460,701
152,361

$2,150,000,000
55,875,000

5, 600,408,350

422,113,000
2, 760,741,170

Other public debt expenditures

387,942,200

2,663,933,350

>
O

^^

$283,838,800
30,500,000
25,000,000
30,000,000

3,791,355,750

O

H
369,338,800
5,231,069,550

RECEIPTS.

Treasury, (war) savings securities . . °
Deposits to retire Federal reserve bank notes and national-bank notes..
New issues ol securities, including Treasury notes and certificates
Excess of public-debt receipts over public-debt expenditures, exclusive of such expenditures chargeable against ordinary receipts, in
fiscal year 1921, applied to public-debt expenditures in fiscal year
1922

26,587,421
40,090,415
2,799,147,486

75,000,000
130,000,000
3,481,271, 598
2,865,825, 322

3,686,271, 598

105,084,152

3,791,355,750

d
5,231,069,550

105,084,152

2,760,741,170

100,000,000
40,000,000
5,091,069,550

5,231,069,550

1 This amount includes $125,000,000 of accumulated interest on war savings certificates, representing discount accrtied on certificates of the series of 1918 which mature
J a n . l , 1923
NOTE.—The expenditures on account of Treasury certificates of indebtedness and the receipts on account of new issues of securities, as shown in this statement, do not include
Treasury certificates which are issued and retired mthin the same fiscal year.




OT

156

REPORT ON THE FINANCES.

Estiinated receipts and expenditures, fiscal year 1922.
Receipts:
> ' Crdinary—
Customs
$275, 000, 000Internal revenue—
Income and pro'fits taxes
$2,110, 000, 000
Miscellaneous
1,104, 500, 000
3, 214, 500, 00(>
Miscellaneous—
Sales of public lands
1, 500, 000
Federal reserve bank franchise tax_
60, 000, 000
Interest on foreign obligations
25, 000,000
Repayments of foreign obligations—
30, 50O, 000
Sales of surplus war supplies
141, 200, 000
United States Grain Corporation—.
25, 000, 000
Panama Canal
11, TGO,. 000
Other miscellaneous
183, 993, 663
478, 953, 66a
Total
1
3, 968, 453, 663Expenditures:
Ordinary (see details on pp. 156-158)—
Public debt expenditures chargeable against
ordinary receipts—
Sinking fund
Purchases of Liberty bonds from- foreign
repayments
Redemptions of bonds and notes from
' estate taxes
Retirements from Federal reserve bank
franchise tax receipts

3, 604, 980,166272, 442, 200
30, 500,000
25, 000, 000
60, 000, 000
387,942,200'

Total ordinary expenditures (including sinking fund
and other debt expenditures chargeable against ordinary receipts)
3,992,922,366Excess of expenditures over receipts

24, 468,703-

POSTAL SERVICE.

The Post Office Department estimates that the postal revenues for the fiscat
year 1922 will amount to $505,000,000, with expenditures for the Postal Servicefor the same period of $553,172,270, an estimated deficiency of $48,172,270.
Classification of estimated ordinary expenditures, fiscal year 1922.
Legislative establishment
Executive office
.i
State Department
Treasury Department:
Proper
Collecting the revenue
Refunds, etc., customs and internal revenue
Enforcement of narcotic and prohibition acts
Public buildings
:




$15, 984,446227, 04511, 406,032:
$52, 834, 825
48, 629,190
40, 279, 000
7, 500, 000
20, 628,148
169,871,16s:

SECRETARY OE THE TREASURY.
War Department:
Proper
Military EstablishmentRivers and harbors
Miscellaneous war (civil)

.

Department of Justice
Post Office Department proper.^
Postal deficiency

157

^
$4, 645, 500
339,606,175
29, 84.9, 921
14,989,810
r- $389,091,406
16, 825, 568
$3, 276,454
48,172, 270
;
51,448,724

Navy Department:
Proper
2,160, 000
Naval Establishment, excluding building program
334, 238, 000
Navy building program
142, 452, 000
478,850,000
Interior Department proper
Pensions
Indians
Department of Agriculture
Department of Commerce
Department of Labor
Independent offices:
United States Veterans' Bureau
1
United States Shipping Board
United States Grain Corporation
Federal control of transportation systems and
transportation act, 1920
1Federal Power Commission
:
Housing Corporation
:
:State, War, and Navy Department Buildings
Federar Board for Vocational Education
Interdepartmental Social Hygiene Board
Federal Trade Commission
Employees' Compensation Commission
Interstate Commerce Commission
Railroad Labor Board
'General Accounting Office
National Advisory Committee for Aeronautics—
Rock Creek and Potomac Parkway CommissionSmithsonian Institution___I
Alien Property Custodian
Bureau of Efficiency
.
-Civil Service Commission
Commission of Fine Arts
Tariff Commission
Temporary Government, West Indian Islands—
Alaska relief funds and miscellaneous
District of Columbia
Panama Canal




.

35, 005, 829
258, 400, 000
33,135, 000
326,540,829
153, 637,100
20,131, 800
4, 796,916
438,122,400
73, 911, 081
25, 000, 000
337, 679, 235
51, 375
1,076,700.
1, 510, 055
4, 756, 344
224, 500
943,500
2, 661,000
5,130, 578
448, 650
2, 089, 433
197, 720
100,000
740,790
388,520
122,350
586, 368 .
9, 886
298, 300
343, 440
60, 000
896,452,225
22, 275, 063
7, 219,849

158

' REPORT ON THE FINANCES.

Miscellaneous:
United States Government life insurance fund investments—
Civil-service retirement and disability fund investments
District of Columbia teachers' retirement fund investmentsIncrease of compensation, all departments
Interest on the public debt

$22,022, 000^'
8,000, 000
200, 000
35,000, 000975, 000; 000

Total estimated ordinary expenditures

3, 604, 980,166

Estimated receipts and expenditures, fiscal year 1923.
Receipts:
Ordinary—
Customs
$330, 000, 000Internal revenue—
Income and profits taxes
$1, 715,000,000
Miscellane'ous :
896, 000, 000
^
2, 611, 000, 000=
Miscellaneous revenue—
Sales of public lands
1, 500, 0(X)
Federal reserve bank franchise tax_
30,000, 000'
Interest on foreign obligations
25, 000, 000
Repayments of foreign obligations30, 500, 000
Sale of surplus war supplies
100, 500, 000
United States Grain Corporation—
7, 000, 000
Panama Canal
——
13, 315, 000
Other miscellaneous
196, 367, 750
404,182, 750Total ordinary receipts

-

^

Expenditures:
Ordinary (see details on pp. 159, 160)
Public debt expenditures chargeable against
ordinary receipts—
Sinking fund
Purchases of Liberty bonds from foreign repayments
Redemptions of bonds and notes from
estate taxes
Retirements from Federal reserve bank
franchise tax receipts

3, 345,182,750'
' 3,143, 415, 927"

- 283, 838, 800
30, 500, 000
25, 000, 000
30, 000, 000
:

369, 338, 800^

Total ordinary expenditures (including sinking fund
and other debt redemptions chargeable against ordinary receipts)
^ 3, 512, 754, 727
Excess of expenditures over receipts.-

-

167, 571, 977

1 This amount does not include $125,000,000 of accumulated interest on war-savings certificates, representing discount accrued on cei'tificates of the series of 1918, which matureJan. 1, 1923.




SECRETARY OE T H E TREASURY.
POSTAL

159

SERVICE.

T h e Post Office D e p a r t m e n t estimates t h a t the postal revenues for the fiscal
y e a r 1923 wiU a m o u n t to $546,714,000, w i t h expenditures for t h e Postal Service
for the same period of $568,223,666, a n estimated deficiency of $21,509,666.
Classiflcation of estvmated o r d m a r y expenditures, flscal year 1923.
Legislative establishment
Executive office
State D e p a r t m e n t
^
Treasury Department:
Proper
Collecting the revenue
Refunds, etc., customs and internal revenue
Enforcement of narcotic and prohibition acts
Public buildings
War Department:
Proper
—
MilitaiT Establishment
Rivers and harbors
—
Miscellaneous w a r (civil)

$16, 265, 215
227, 045
10, 432, 624
$52, 302, 404
54, 549,190
35,251,700
10, 000, 000
16, 893, 866 ^
—

—

Department of Justice
Post Office D e p a r t m e n t :
Proper
Postal deficiency

3,492,757
302, 473, 500
46, 045, 400
17,890,450
•

168,997,160

369,902,107
18, 415,681

3, 357, 092
21, 509, 666
24,866,758 '

Navy D e p a r t m e n t :
Proper
2,113,000
Naval Establishment, excluding building program—
330, 443,000
Navy building program
99,198, 000
431,754,000
Interior D e p a r t m e n t :
Proper
Pensions
_ —
Indians

'.

41, 799, 022
252,350,000 .
31, 883, 000
—:—
326, 032, 022
173,197, 530
^19,939,970
6,301, 835

Department of Agriculture
D e p a r t m e n t of Commerce
Department of Labor
Independent offices:
United States Veterans' B u r e a u
.
455, 232, 702
United States Shipping Board
50,495, 735
United States Grain Corporation
7, 000, 000
Housing Corporation
1, 267,435
F e d e r a l Board for Vocational Education
5, 529, 244
Federal T r a d e Commission ____.
.__
948,500
Railroad Labor Board
398, 650
Employees' Compensation Commission
2,798, O K
C)
I n t e r s t a t e Commerce Commission
4,995, 240
State, War, and Navy Department buildings
1, 464, 420
General Accounting Office
2, 424, 946




160

REPORT ON T H E FINANCES.

Independent offices—Continued.
F e d e r a l Power Commission
National Advisory Committee for Aeronautics
Rock Creek and Potomac P a r k w a y Commission.
Smithsonian Institution
Alien Property Custodian
?
Board of Mediation and Conciliation
B u r e a u of Efficiency
Civil Service Commission
Commission of F i n e A r t s
Tariff Commission
Alaska relief f u n d s —

$72, 500
246, 000
100, 000
728, 931
390,480
25, 000
170, 500
595, 595
9, 886
373, 500
25, 000
$535, 292,264
25, 070, 877
7, 358,839

District of Columbia
.,
P a n a m a Canal
,
^
Miscellaneous:
United States Government life insurance fund, i n v e s t m e n t s .
Civil-Service retirement and disability fund, investments
District of Columbia teachers' retirement fund, i n v e s t m e n t s .
I n t e r e s t on the.public debt^
Total estimated ordinary expenditures

26, 162,000
8, 000,000
200, 000
^ 975, 000, 000
^3,143,415,927

Estimated internal revenue receipts under revenue act approved Nov. 23, 1921.
Source of revenue.
Income tax:
Individual...
Corporation.
Profits tax
Back taxes
Total income and profits tax
MisceUaneous internal revenue (see details below)..
Total.

Fiscal year
1922.

Fiscal year
1923.

$850,000,000
430,000,000
600,000,000
230,000,000

$770,000,000
495,000,000
150,000,000
300,000,000

$760,000,000
570,000,000

2,110,000,000
1,104,500,000

1,715,000,000
896,000,000

1,650,000,000
900,100,000

3,214,500,000

2,611,000,000

2,550,100,000

Calendar year
1923.

320,000,000

MisceUaneous internal revenue:
150,000,000
150,000,000
150,000,000
Estate tax
135,000,000
Transportation
27,000,000
27, 000,000
27,000,000
Telegraph and telephone.
10, 000,000
Insurance
60, 000,000
""65," 665," 666
"60,'656," 665'
Alcoholic spirits, etc
Beverages20,000,000
18,000,000
18, 000,000
Cereal beverages
22, 000,000
Fruit juices and soft drinks.
11,000,000
11,000,000
1,000,000
Fountain sirups
,
2,000,000
2,000,000
500,000
Carbonic acid gas
1,000,000
1,000,000
250, 000,000
Tobacco
250,000,000
250,000,000
95, 000,000
Admissions and dues
80,000,000
80,000,000
Automobiles, trucks, parts, etc..
110,000,000
110,000,000
110,000,000
Musical instruments, etc
•5, 000,000
Sporting goods, etc
1,500,000
400,000
Chewing gum
,
800,000
Cameras
800,000
800,000
Photographic fihns—
750,000
750,000
750,000
Sold
000,000
Leased (moving pictures)...
000,000
12,000,000
12,000,000
Candy
,
500,000
3,500,000
3,500,000
Firearms, sheUs, etc
30,000
30,000
30,000
Knives, dirks, etc.
150,000
Electric fans
100,000
Thermos bottles
1 This a m o u n t does not include $125,000,000 of accumulated i n t e r e s t ' on war savings
certificates, representing discount accrued on certificates of the series of 1918, which
mature J a n . 1, 1928.




161

SECRETARY OF THE TREAStJRY.

Estimated internal revenue receipts under revenue act approved Nov. 23, 1921Con tinued.
Fiscal year
1922.

Source of revenue.
Miscellaneous internal revenue—Continued.
Smokers' articles
Automatic vending machines
Liveries, hunting and shooting garments, and riding
habits
Fur articles
Yachts and motor boats (sale)
Toilet soaps,, etc
Art works
,
" Luxuriiesi' i
,
Jewelry,, etc'
,
Perfumes and cosmetics
Proprietary medicines
Corporation capital stock
Stamp t a x e s Parcel post
,
I Issues and conveyances, stocks
Capital stock transfers
Sale of produce or exchange
Miscellaneous taxes

Fiscal year
1923.

Calendar year
1923.

$150,000
100,000

$150,000
100,000

$150,000
100,000

350,000
4,500,000
500,000
1,000,000
700,000
11,000,000
20,000,000
1,500,000
1,500,000
75,000,000

350,000

350,000

500,000

500,000

400,000
3,000,000
24,000,000

400,000
4,000,000
25,000,000
75,000,000

33,000,000
6,000,000
7,500,000
19,920,000

33,000,000
6,000,000
7,500,000
20,020,000

1,104,500,000

Total.

75,000,000

10,000,000
33,000,000
8,000,000
7,500,000
19,970,000

896,000,000

900,100,000

Estimates of miscellaneous receipts for the fiscal years 1922 and 1923, by various
departments and establishments of the Government.
1922

Legislative establishment. :.......-...
State Department
Treasury Bepartment.
War Department (iricludes sale of surplus war suppUes)..
Department of Justice
Post Oflice Department
Navy Department
Interior Department..
Department of Agriculture
Department of Commerce
Department.of Labor.
Uni ted'[St;ates Veterans' Bureaii. i . . . . . .

1923

$573,400
10,794,692
43,915,081

$578,550
9,704,000
51,816,158

155,483,464
7,271,900

113,756,464
7,846,900

60,000
8,489,000
37,191,499

60,000
5,201,000
36,888,490

6,532,800

.6,837,800

3,514,512
4,044,600

5,548,801
5,326,864

27,717,000

33,170,000

1922

Federal control of
transportation systems and transpor. tation act 1920
$138,000
Grain Corporation
25,000,000
Other independent
oflBces and commissions
^..'... . 3,710,834
District of Columbia.. . 17,256,881
Panama Canal
:.
11,760,000
Federal reserve bank
franchise tax receipts...:.....:..:..
60,000,000
Interest on foreign
obligations
25,000,000
Repayments of foreign obhgations
30,500,000
Total estimated
misceUaneous
receipts

478,953,663

1923

$7,000,000
..13,557,408
18,075,315
13,315,000
30,(300,000
%

000,000

>30,500,000

404,,182,750

E S T I M A T E S FOR 1 9 2 3 A N D A P P R O P R I A T I O N S FOR 1 9 2 2 .

Comparison of the estimates for 1923 with the appropriations for
1922 shows an increase in the 1923 estimates of $27,067,631.52, as
exhibited in the table following, without, however, including in the
figures for 1922 the railroad guaranty, repayments under revolving
fund appropriations, repayments to appropriations, and appropriations of unexpended balances, the effect of which on the appropriations for that year is shown on pages 47 to 49 of the report for the
fiscal year 1920.
70073—FI 1921




11

162

REPORT ON. THE FINANCES.

Statement of estimates of appropriations for 1923 compa/red ivith appropriations
for 1922.
[Excluding Postal Service payable from the postal revenue.)

Department, etc.

lies^gislative
Executive:
* ^ Executive proper
.,. Alien Property Custodiari
Tarifi Commission
-.-., Bureau of Efficiericy
" Civil Service Commission
' ' Miscellaneous..'../..'.•.'..'.'."
.•
Department of State:
Department of State proper
Foreign intercourse
TreasuryDepartment:
Treasury Department, exclusive of public
buildings construction
.'
Public buil dings construction
War Department:
War Department proper
Mihtary Establishment—
(Estimates for MiUtary Establishment
for 1922, $814,787,641.26; appropriations
for 1921, $419,881,986.37.)
Army
,
Military Academy.
National Guard
Fortifications
- Arsenals
' MiUtary posts and miscellaneous
,
- Rivers arid harbors
Miscellaneous war, civil items
Navv Department:
I^avy Department proper
Naval EstabUshment—
(Estimates for Naval Establishment
for 1922, $692,713,427.47; appropriations
for 1921, $437,302,564.40.)
Naval Establishment, exclusive of
building program
Navy building program
Department ofthe Interior:
Department of the Interior, exclusive of
Indians and pensions
Pensions
,
Indians
Post Office Department:
Post Office Department, exclusive of Postal
Service
Department of Agriculture
Department of Commerce
Department of Labor
—
Department of J ustice
,
Independent offices: .
Smithsonian Institution and National Museum
Interstate Commerce Commission
Federal Trade Commission
United States Shipping Board
,
1
Housing Corporation...:
....
General Accounting Office.
Interdepartmental Social Hygiene B o a r d . . . . .
Federal Board for Vocational Education
. National Advisory Committee for Aeronautics.
Board of Mediation and Conciliation
United States Veterans' Bureau
Railroad Labor Board
Federal Power Commission.-:
,
Pilgrim Tercentenary Commission
—
^ . Emplovees' Compensation Commission
Rock Creek and Potomac Parkway Commission
—
State, War, and Navy Department Bmldings.
Indigent in Alaska relief fund




Increase,
1922 appropria-. estimates 1923
1923 estimates,
over
including perma- tions, including
1922 appropripermanent
nent annual.
ations (-f-); deannual.
crease (—).
$16,493,845. 95

$17,196,203.39

- . $702,357.44-

228,880.00
376,920.00
375,000. 00
175,000.00
611,755.00
10,000.00

228,880.00
375,000.00
300,000.00
125,000.00
604,975.00
398,440.00

1,920.00
75,000.00
50,000.00
6,780.00.
388,440.00

1,003,460.00
9,577,441.16

987,960.00
9,649,809. 09

156,194,097.82
.5,471,800.00

141,982,310.00
22,710,631.29

-{•
-

15,500.00
72,367.93

3,572,865.00

4,762,990. .00

-f 14,211,787.82
- 17,238,83L29
— 1,190,125.00

261,233,383.00
2,149,644.80
30,000,000.00
7,000,000.00
1,028,000.00
4,586,056.67
40,599,860.00
10,331,114.00

301,202,170.00
2,357,259.80
25,554,100.00
8,038,017.00
'2,045,000.00
2,172,561.67
29,766,600.00
12,637,363.94

- 39,968,787.00
207,615.00
-I- 4,445,900.00
- 1,038,017.00
- 1,017,000.00
+ 2,413,495.00
+ 10,833,260.00
- 2,306,249.94

2,172,910.00

2,341,660. 00

-.

168,750.00

•338,779,457.13
85,000,000.00

333,506,419.37
90,000,000.00

-f-

5,273,087.76
5,000,000.00

33,330,865.00
252,350,000.00
32,558,077.00

46,400,205.00
265,-500,000.00
33,617,554.67

- 13,069,340.00
- 13,150,000.00
959,477.67

3,412,000.00
46,860,668.00
20,675,326.25
6,564,632.00
18,505,556.00

3,241,705:55
48,349,559.00
17,265,060.00
4,904,835.75
15,779,238.50

170,294.45
1,488,891.00
3,410,266.25
1,659,796.25
2,726,317.50

741,120.00
5,194,970.00
955,000.00
50,501,500.00
1,080,425.00
2,468,601.00

736,620.00
4,893,100.00
955,000.00
73,959,000.00
1,110,000.00
2,019,550.00
225,000.00
5,438,000.00
200,000.00

-f
4,500.00
+
301,870.00
- 23,457,500.00
29,575.00
+
449,051.00
225,000.00
+
494,000.00
+
50,000.00
+
25,000.00
-f 155,348,082.00
+
30,000.00
-.
100,000.00

5,9:32,000.00
: 250,000.00
'
25,000.00
385,921,702.00
400,000.00

230,573,620.00
370,000.00
100,000.00

2,800,940.00

1,944,940.00

-f

856,000.00

100,000.00
1,475,270.00
25,000.00

200,000.00
1,654,710.00
25,000.00

-

100,000.00
179,440.00

SECRETARY OE THE TREASURY.

163

Statement of estimates of appropriations for 1923, etc.—Continued.

Department, etc.

District of Columbia
Interest on the public debt
Increase of compensation, estimated.
Panama Canal
Sinking fund
Other debt redemptions
'..
Total.

1922 appropria1923 estimates,
including perma- tions, including
permanent
nent annual.
annual.
$27,195,476.75
1975,000,000.00

Increase, 1923
estimates over
1922 appropriations (-}-); decrease (—).
+ $4,635,763.76

4,241,174.00
283,838,800.00
85,500,000.00

$22,559,712.99
975,000,000.00
35,000,000.00
9,000,000.00
272,442,200.00
115,500,000.00

13,224,875,593.53

3,197,807,962.01

-\- 27,067,631.52

4-

35,000,000.00
4,758,826.00
11,396,600.00
30,000,000.00

* This amount does n o t include $125,000,000 of accumulated interest on w a r savings certificates, representing discount accrued on certificates of t h e series of 1918, which mat u r e J a n . 1, 1923.

Exhibit of appropriations for 1922.
Appropriations made for the flscal year 1922 and for prior
years during the third session of the Sixty-sixth Congress
and first session Sixty-seventh Congress to November 1,
1921, including revised estimated permanent and indefinite
appropriations, and appropriations for the Postal Service
payable from postal revenues
$4,125, 511,933.94
Deduct:
Postal Service for 1922 payable from
the postal revenues^—^_ $574, 092, 552. 00
Postal deficiencies of prior years, payable from postal revenues
127, 331, 902. 76
Deficiencies and supplementals for prior
years
— 226, 279, 517.17
927, 703, 971. 93
Total appropriations for 1922, exclusive of deficiencies
and Postal Service payable from postal revenues,
,and excluding also the railroad guaranty, repayments under revolving fund appropriations, repayments to appropriations, and appropriations of unexpended balances
___— 3,197,807,962.01
Attention is respectfully invited to the attached abstracts of the
^annual reports of the various bureaus and divisions of the Treasury
Department and to the tables and exhibits accompanying the report
on the finances.
o
A. W. MELLON, Secretary.
To tlie SPEAKER OF THE HOUSE OF EEPRESENTATIVES.







EXHIBITS ACCOMPAJsYING THE REPORT ON THE FINANCES.




165-7




EXHIBITS.
EXHIBIT 1.
CERTIFICATES OF INDEBTEDNESS: TOTAL ISSUES AND AMOUNT ISSUED THROUGH EACH F E D E R A L R E S E R V E
BANK AND TREASURY DEPARTMENT.
(A) FROM JULY 1, 1920, TO OCT. 31, 1921.
F e d e r a l reserve d i s t r i c t .
A u t h o r i z i n g act a n d series.

D a t e of issue.

D a t e of
maturity.

Rate.

Total amount.
Boston.

New York.

Philadelphia.

Cleveland.

Richmond.

Atlanta.
Ui

L o a n certificates of 1921:
S e p t . 24, 1917, as a m e n d e d A p r .
4,1918, a n d M a r . 3, 1919—
Series B-1921
Series C-1921..
Series D-1921
Series E-1921
Series F-1921
Series G-1921'.
"...
Series H - 1 9 2 1 . . .

Q
J u l y 15,1920
A u g . 16,1920
N o v . 15,1920
J a n . 15,1921
do
F e b . 15,1921
A p r . 15,1921

Jan.
Aug.
May
Apr.
Oct.
July
Oct.

15,1921
16,1921
16,1921
15,1921
15,1921
15,1921
15,1921

F e b . 16,1922
A u g . 1,1922

5§
5i

Total
Grand total
I s s u e d i n a n t i c i p a t i o n of i n c o m e
a n d profits t a x e s , 1921:
S e p t . 24,1917, as a m e n d e d —
Series TM2-1921
Series TM3-1921.
Series TS-1921
Series TM4-1921
Series TJ2-1921
Series TD-1921
Series TS2-1921
Total




J u l y 15,1920
Sept. 15,1920
do.. . . . . .
Oct. 15,1920
D e c . 15,1920
do
M a r . 15,1921

M a r . 15,1921
do
S e p t . 15,1921
M a r . 15,1921
J u n e 15,1921
D e c . 15,1921
S e p t . 15,1921

6
6
5i

$9,742,000
12,426,000
19,006,500
5,160,500
18,903,000
10,945,000
19,047,000

$7,990,000
15,0,57,500
31,350,000
7,559,000
16,841,000
12,221,000
16,125,000

$1,550,000
5,567,000
7,106,500
3,830,500
5,009,000
^ 4,222,000
6,146,500

$1,485,000
4,262,500
2,363,500
1 .540 000
3,258,500
2,398,500
2,809,000

92,606,000

458,609,000

95,230,000

107,143,500

33,431,500

18,117,000

256,170,000
259,471,500

21,208,000
21,068,500

99,954,000
99,622,500

25,757,500
30,336,500

23,300,000
19,370,000

7,615,000
7,865,000

42,276,500

199,576,500

56,094,000

42,670,000

15,480,000

10,522,000

1,666,288,000

M a y 16,1921
A u g . 1,1921

$55,808,500
57,704,500
83,515,500
61,019,000
77,043,000
49,451,500
74,067,000

515,641,500

Total
L o a n certificates of 1922:
S e p t . 24, 1917, as a m e n d e d A p r .
4,1918, a n d M a r . 3,1919—
* Series A-1922
•
Series B-1922

$8,852,000
14,042,000
18,851,000
591,500
24,524,000
11,402,000
14,343,500

•1,150,646,500

ft

$126,783,500
157,654,500
232,124,000
118,660,000
192,026,500
132,886,500
190,511,500

134,882,500

658,185,500

151,324,000

149,813,500

48,911,500

34,583,000
60,233,500
181,370,500
40,566,500
93,616,000
173,291,000
85,721,500

4,508,000
6,138,500
26,936,000
13,822,500
6,681,500
38,466,500
1.0,434,000

6,164,500
9,831,000
29,205,000
^ 14,393,000
28,550,000
39,700,000
23,634,000

2,195,000
1,884,000
9,138,500
4,204,000
3,849,500
14,044,500
6,291,000

1,726,000
1 092 500
4 537 500
2' 227 500
2! 570; 500
3,757,000
2 647 500

99,001,000

669,382,000

106,987,000

151,477,500

41,606,500

>

28 6r{9 000

3,786,500
5,424,000
21,329,500
10,059,000
10,455,000
35,035,000
12,912,000

H

18,558,500

74,278,000
106,626,500
341,969,500'
124,252,500
188,123,000
401,557,500
193,302,000
1,430,109,000

3 572 500
6 Q4Q .500

K!

O

^^
W

\^
.>
w
d

CO

Certificates of indebtedness: Total issues and'amount issued through each Federal reserve banh and Treasury Department—Continued.
(A) FROM JULY 1, 1920, TO OCT. 31, 1921—Continued.
F e d e r a l reserve d i s t r i c t .
A u t h o r i z i n g act a n d series.

D a t e of issue.

D a t e of
maturity.

Rate.

Total amount.
Boston.

Issued i n a n t i c i p a t i o n of i n c o m e a n d
profits t a x e s , 1922:
S e p t . 24, 1917, as a m e n d e d — '
Series TM-1922
Series TJ-1922
Series TM2-1922
Series TS-1922
Series TM3-1922 .
...

M a r . 15,1921
J u n e 15,1921
A u g . 1,1921
S e p t . 15,1921
.do.

New York.

Philadelphia.

Cleveland.

Richmond.

$124,187, 500
137,155, 500
47, 263, 500
80, 057, 500
48, 422, 500

' $40, 346,000
25, 333, 500
9, 033, 500
12, 081, 500
8,191,500

$28, 341, 000
39, 225, 000
11,295,000
13, 320, 000
10,100, 000

$10,149, 500
8, 526,000
3, 746,000
4,665,000
2, 550,500

$2, 386,500
3, 850,000
1, 812, 500
1,617, 500
2, 793, 500

94,986,000

102, 281,000

29, 637,000

12, 460,000

Atlanta.

$288,501,000
314,184,000
116,891,000
182, 871,000
124, 572,000

$22,066,000
21, 070,000
9,101, 500
10, 921, 500
8,692,000

Total

1,027,019, 000

71, 851, 000

Grand total...'

2, 457,128,000

170,852,000 1,106, 468, 500

201, 973, 000

253, 758, 500

71, 243, 500

31, 018, 500

2-4

5,551,600,000

421,000, 000 3, 385, 000, 000

373,000, 000

730,000,000

56,000,000

12, 000, 000

6

32,854,450

Special s h o r t - t e r m issues:
S e p t . 24,1917, as a m e n d e d —
A p r . 4,1918, a n d M a r . 3,1919.
0)
Special issue ( W a r F i n a n c e Corporation)
S e p t . 21,1920

Mar.
June
Mar.
Sept.
Mar.

15,1922
15,1922
15,1922
15,1922
15,1922

S e p t . 22,1921

5f

II

437,086, 500 ^

o
H
O

',
Federal reserve d i s t r i c t .
A u t h o r i z i n g a c t a n d series.

D a t e of issue.

D a t e of
maturity.

Rate.
Chicago.

L o a n certificates of 1921:
S e p t . 24, 1917, as a m e n d e d A p r .
4, 1918, a n d Mar. 3, 1919—
Series B-1921
Series C-1921
Series D-1921
Series E-1921
Series F-1921
Series G-1921
Series H-1921
Total




J u l y 15,1920
A u g . 16,1920
N o v . 15,1920
J a n . 15,1921
do
F e b . 15,1921
A p r . 15,1921

Jan.
Aug.
May
Apr.
Oct.
July
Oct.

15,1921
16,1921
16,1921
15,1921
15,1921
15,1921
15,1921

-1

St. Louis.

Minneapolis. K a n s a s C i t y .

DaUas.

San Francisco.

Treasury
Department.

$10,044,500
20,250,500
27,264,500
16,445,000
18,764,500
16,526,500
22,932,000

$3,702,500
6,285,500
9,576,500
4,981,500
5,760,500
6,511,500
8,512,000

$721,500
2,093,000
4,875,000
2,817,000
4,660; 000
. 2,650,000
5,190,000

85,795,000
6,000,000
7,118,000
3,524,000
6,564,000
4,456,500
6,200,000

$1,192,500
2,544,000
3,492,000
2,197,000
1,424,000
2,552,000
2,764,500

$7,900,000
11,422,000
17,605,000
8,995,000
9,275,000
9,550,000'
12,375,000

$12,000,000

132,227,500

45,330,000

23,006,500

39,657,500

• 16,166,000

77,122,000

12,000,000

1 Various.

a
Ul

L o a n certificates of 1922:
S e p t . 24, 1917, a s a m e n d e d A p r
4,1918, a n d M a r . 3,1919—
Series A-1922
Series B-1922

M a y 16,1921
A u g . 1,1921

Feto. 16,1922
A u g . 1,1922

29,989,000
26,127,500

5^
5^

Total
I s s u e d i n a n t i c i p a t i o n of income a n d
profits t a x e s , 1922:
S e p t . 24,1917, a s a m e n d e d —
Series TM-1922
Series TJ-1922
Series T M 2 - 1 9 2 2 . . .
Series TS-1922
Series TM3-1922. .

4,071,500
5,289,500

14,540,000
16,016,500

56,116,500

M a r . 15,1921
J u n e 15,1921
A u g . 1,1921
S e p t . 15,1921
do

M a r . 15,1921
do
S e p t . 15,1921
M a r . 15,1921
J u n e 15,1921
D e c . 15,1921
S e p t . 15,1921

Mar.
June
Mar.
Sept.
Mar.

15,1922
15,1922
15,1922
15,1922
15,1922

6
5^

ll
ll
. 5

•

14,699,000

18,258,500

9,361,000

30,556,500

37,705,500

.57,916,000

25,527,000

107," 678,500

8,177,000
9,330,500
24,459,500
15,234,000
16,522,000
37,645)000
21,879,500

5|
5|
6

20,031,000
65,361,000

2,300,000
1,046,500
9,900,500
4,621,000
6,153,000
14,703,500
4,705,000

1,032,500
1,864,500
3,986,500
2,050,000
2,600,000
6,625,000
3,166,000

2,210,500
1,686,500
9,313,500
4,744,500
3,499,500
11,303,500
4,850,500

495,000
1,945,000
2,692,500
3,i)08,500
1,426,000
3,606,500
2,546,000

7,100,000
6,150,000
19,100,000
9,322,000
12,200,000
23,380,000
14,515,000

133,247,500

J u l y 15,1920
S e p t . 15,1920
do
O c t . 15,1920
Dec. 15,1920
. . do
M a r . 15,1921

43,429,500

21,324,500

37,608,500

15,719,500

91,767,000

20,536,500
33,774,500
17,636,000
26,778,500
15,856,000

8,574,000
12,701,500
3,695,000
6,145, 500
3,035,500

4,068,500
5,462,500
2,689,000
3,500,000
3,420,000

9,149,500
9,477,500
2,516,500
6,705,000
5,632,000

2,396,000
4,708,000
2,489,000
3,979,000
5,278,500

16,300,000
12,900,000
5,613,500
13,100,000
10,600,000

~

114, 581,500

0)
S e p t . 22,1921

2-4

34,151, 500

• 19,140,000

33,480,500

18, 850,500

77,581,000

40,464,500

71,089,000

34,570,000

39,000,000

7,000,000

6,000,000

13,000,000

171,100,000

w
f

o
>
O

W

I

150, 280, 500

301,000,000

12,000,000

58,513, 500

247,829,000

Total....
* Grand total
Special s h o r t - t e r m issues:
S e p t . 24,1917, a s a m e n d e d —
A p r i l 4,1918, a n d Mar. 3,1919.
Special issue ( W a r F i n a n c e Corporation)
S e p t . 21,1920




8,375,000
9,883,500

188,344,000

Total
Grand total
Issued i n a n t i c i p a t i o n of i n c o m e a n d
profits t a x e s , 1921:
S e p t . 24,1917, a s a m e n d e d —
Series TM2-1921-.
Series T M 3 - 1 9 2 1 . . .
Series TS-1921
Series T M 4 - 1 9 2 1 . . .
..
Series TJ2-1921
Series T D - 1 9 2 1
Series TS2-1921

6,990,000
7,709,000

10,797,500^
9,233,500

>
37,500,000
32,854,450

6

1 Various.

Ul

cl

Certificatei of indebtedness: Total issues and amount issued through each Federal reserve banh and Treasury Department—Continued.
(B) RECAPITULATION.
FROM JULY 1,1920, TO OCT. 31,1921.,
Total amount.

Issues.

Boston.

New York.

'
Philadelphia.

Cleveland.

Richmond.

Atlanta.

$1,666,.288,000
2,457,128,000
5,551,600,000
32,854,450

;

Total

$134,882,500
170,852,000
421,000,000

$658,185,500
1,106,468,500
3,385,000,000

$151,324,000
201,973,000
373,000,000

$149,813,500
253,758,500
730,000,000

$48,911,500
71,243,500
56,000,000

$28,639,000
31,018,500
12,000,000

9,707,870,450

Loan certificates..
Tax certificates
Special short-term certificates...
..
Special issue (War Finance Corporation)

726,734,500

5,149,654,000

726,297,000

1,133,572,000

176,155,000

71,657,500

Minneapohs.

Kansas City.

Chicago.

Issues.

St. Louis.

Dallas.

San Francisco.

Treasury.

.

:

Total

$188,344,000
247,829,000
301,000,000

$65,361,000
77,581,000
39,000,000

$37,705,'500
40,464,500
7,000,000

$57,916,000
71,089,000
6,000,000

$25,527,000
34,570,000
13,000,000

$107,678,500
150,280,500
171,100,000

$12,000,000

737,173,000

Loan certificates..
.
Tax certificates
Special short-term certificates
Special issue (War Finance Corporation)

181,942,000'

85,170,000

135,005,000

73,097,000

429,059,000

37,500,000
32,854,^450

(C) RECAPITULATION.

Loan certificates:
In anticipation of the first Liberty loan
In anticipation of the second Liberty loan
In anticipation of the third Liberty loan
In anticipation of the fourth Liberty loan...
In anticipation of the Victory Liberty loan
Series 1920 . : . . .
Series 1921
•
Series 1922..1

Total amount.

Total loan certificates




.

H
O

82,354,450

FROM APR. 6, 1917, TO OCT. 31,

Issues.

o

$868,205,000.00
2,320,493,000.00
3,012,085,500.00
4,659,820,000.00
6,157,589,500.00
. . 2,360,044,500.00
1,327,250,500.00 515,641,500.00
21,221,129,500.00

New York.

$57,367,000
132,044,000
214,417,000
381,152,500
475,792,500
188,175,500
105,076,000
42,276,500

$460,462,000
1,467,543,000
1,255,308,000
1,680,989,000
2,255,145,000.
959,162,500
539,979,500
199,576,500

1,596,301,000

>
o

1921.

Boston.

8,818,165,500

W

Philadelphia.

Cleveland.

Richmond.

Atlanta.

$43,400,000
89,132,000
196,500,000
316,020,000
420,334,500
145,544,500
100,530,000
56,094,000

$58,900,000
182,513,000
238,033,500
440,569,000
554,761,500
174,478,500
121,767,500
42,670,000

$13,703,000
40,014,000
75,829,500
117,983,500
187,497,000
48,864,000
35,813,500
15,480,000

$13,305,000
32,135,000
79,573,000
114,857,000
143,311,500
72,428,000
21,098,500
10,522,000

1,367,555,000

1,813,693,000

535,184,500

487,230,000

Ul

T a x certificates:
In anticipation
In anticipation
I n anticipation
In anticipation
In anticipation

831,473,000
1,451,852,000
1,358,566,000
822,993,500
437,086,500

95,537,000
141,001,500
191,939,500
135,318,500
94,986,000

285,452,500
.435,440,500
246,367,000
194,030,500
102,281,000

20,822,000
92,519,000
64,260,500
54,652,000
29,637,000

13,006,000
71,4i4,000
79,119,500
25,631^,000
12,460,000

727,324,000

4,901,971,000

658,782,500

1,263,571,500.

261,890,500

201,638,500

259,375,000.00
112,091,700.00
18,694,090,658. 53
32,854,450.00

21,436,000

59,276,000

30,280,000

23,299,000

.12,260,000

15,664,000

721,000,000

11,699,500,000

514,000,000

1,454,000,000

179,000,000

45,000,000

3,066,061,000

25,478,912,500

2,570,617,500

4,554,563,500

988,335,000

749,532,500

Chicago.

G r a n d t o t a l , a l l issues

83,260,000
256,911,500
187,623,500
127,678,000
71,851,000

51,277,777,808. 53

T o t a l t a x certificates
Special issues t o secure F e d e r a l r e s e r v e b a n k n o t e s .
Special issues p a y a b l e i n foreign c u r r e n c y
Special s h o r t - t e r m issues
Special is'^nft ( W a r Finahcp. C o r p o r a t i o n ) ,

1,624,403,500.00
3,354,787,500.00
3,078,030,000.00
1,873,996,500.00
1,027,019,000.00
10,958,236,500.00

of I n c o m e a n d profits t a x e s , 1918
of i n c o m e a n d profits t a x e s , 1919
of i n c o m e a n d profits t a x e s , 1920
of i n c o m e a n d profits t a x e s , 1 9 2 1 . . . .
of i n c o m e a n d profits t a x e s , 1922

St. Louis.

Minneapolis.

Kansas City.

Dallas.

Ul

o
Issues.
L o a n certificates:
I n anticipation
In anticipation
In anticipation
I n anticipation
In anticipation
Series 1920
Series 1921
Series 1922

.•

T o t a l l o a n certificates..
T a x certificates:
I n anticipation
I n anticipation
• I n anticipation
I n anticipation
In anticipation

of i n c o m e
of i n c o m e
of i n c o m e
of i n c o m e
of i n c o m e

and
and
and
and
and

profits
profits
profits
profits
profits

taxes,
taxes,
taxes,
taxes,
taxes,

1918.
1919..
1920..
1921..
1922..

T o t a l t a x certificates..
Special issues t o secure F e d e r a l reserve b a n k n o t e s .
Special issues p a y a b l e i n foreign c u r r e n c y . :
,
Special short t e r m issues
.'
Special issue ( W a r F i n a n c e C o r p o r a t i o n )
G r a n d t o t a l , all issues..




$77,693,000
138,597,000
325,355,000
663,204,000
953,415,500
278,575,000
157,359,500
56,116,500

$32,745,000
45,700,000
133,584,500
186,963,000
245,288,000
84,738,000
50,955,000
20,031,000

$14,600,000
29j471,000
89,350,000
127,560,000
218,880,500
73,113,000
25,221,000
14,699,000

$30,300,000
38,039,000
128,524,500
176,866,000
187,745,000
81,875,500
44,845,000
18,258,500

$18,225,000
39,347,000
90,925,000
83,320-, 000
101,546,000
77,638,000
18,733,000
9,361,000

2,650,315,500

of t h e first L i b e r t y l o a n
of t h e second L i b e r t y l o a n . .
of t h e t h i r d L i b e r t y l o a n
of t h e f o u r t h L i b e r t y l o a n . . .
of t h e V i c t o r y L i b e r t y l o a n . .

800,004,500

592,894,500

706,453,500

439,095,000

162,934,000
463,807,000
395,437, 500
182,606,500
114,581,500
1,319,366,500
39,612, 000

'i,"79i,'666,"666"
5,800,294,000

22,703,000
75,522,000
98, 585,000
60,029,000
34,151,500
290,990, 500

11,398,000
51,650, 500
63,787,500
26,860, 500
19,140, 000
172, 836,500

17,068,000

8,480,000

"i27,"666,'666"

*i96,"566,'666"

1,235,063,000

970,711,000

21,036,500
.41,984, 500
69,996,000
56,256, 500
33,480, 500
222,754,000
12,S20,000

'i23,'666,'666'
1,065,027,500

28,950,500
61,940,000
88,671,500
24,439,500
18,850, 500
222, 852,000
8,300,000

"262,'656," 666'
872,247,000

Treasury.

San Francisco.

$36,900,000
85,958,000
172,790,500
305,020,000
390,475,000
168,052,000
93,872,000
30,556,500

$10,605,000

1,283,624,000

130,613,500

fed

. 47, 831,000
166,156,500
199,031, 500
123,430,000
58, 513,500
594,962, 500
10, 880,000

11,895,000
65,316,000
23,397,500
7,400,000
12,000,000

_

_
44,588,500-00
34,645,000.00
40,063,000.00
119,296,500.00

O

>^
H

w
^
>
Ul
d
feti
Ki

* 661,'166," 666' "ii2,"69i,'766.*66
2,490, 566,500

1,040,990,658.53
32,854,450.00
1,435,846,808.53

CO

EXHIBIT

2.

ISSUES AND RETIREMENTS—CERTIFICATES OF INDEBTEDNESS.
Fiscal year ended June 30, 1921.
R a t e (per
cent).

Title.
L o a n issues:
M a t u r e d J u n e 30,
F e b . 8 1918
M a r . 20, 1918
A p r . 10 1918
IV-A
IV-B
IV-C... .
IV-D
IV-E
V-A
.
V-B.
V-C
V-D
V-F
V-G
.
V-H
V-J .
V-K
A-1920 .
B-1920...
. C-1920.
D-1920
Unmatured Jime
E-1920
F-1920...
G-1920

1920—
..

.

.

.

.

4

t

..

%
.

3
4*

n
.

.

.
.-

30,1920—

. . .

ti

.

H-1920.

f

A-1921...
B-1921 . .

5^
5f
5f

D a t e of
issue.

D a t e of
maturity.

May
June
July
Oct.
Nov.
Nov.
Dec.
Jan.
May
May
June
June
July
July
Aug.
Sept.
Oct.
Jan.
Jan.
Feb.
Feb.

9,1918
18,1918
9,1918
24,1918
7,1918
21,1918
5,1918
2,1919
6,1919
20,1919
3,1919
17,1919
15,1919
29,1919
12,1919
9,1919
7,1919
2,1920
15,1920
2,1920
16,1920

A p r . 1,1920
A p r . 15,1920
do

July
July
Oct.

1,1920
15,1920
15,1920

N o v . 15,1920

102,865,000

Jan.
Jan.

176,604,000

8,1918
20,1918
10,1918
25,1918
9,1918
23,1918
6,1918
3,1918
5,1918
19,1918
2,1919
16,1919
13,1919
27,1919.
13,1919
10,1919
1,1919
1,1919
15,1919
2,1919
1,1919

3,1921
15,1921

6

A u g . 16,1920

A u g . 16,1921

D-1921
E-1921
F-1921...

s

N o v . 15,1920
J a n . 15,1921
do........

M a y 16,1921
A p r . 15,1921
Oct. 15,1921

5h

F e b . 15,1921

July

G-1921




5,000
1,000
1,000
1,500
1,000
2,000
6,500
7,000
5,000
11,000
• 3,000
13,500
9,500
106,000
8,000

1 31,000
J u n e 15,1920
J u l y 15,1920

15,1921

Matured. .

11,000

1 $20,000
17,1920

Retired.

Unmatured.

$2,000

153,650,000
79,015, 500
169,033, 500

May

O u t s t a n d i n g J u n e 30,1921.
Issued.

$2,000
500
10,000
500
13,000
5,500
8,500
2,000
2,500
2,500
1,000
2, 000
7,500
7,000
5,000
11, 000
3,000
13, 500
9, 500
109, 500
8,000

Feb.
Mar.
Apr.
June
.July
July
Aug.
Sept.
Dec.
Dec.
Jan.
Jan.
Feb.
Feb.
Mar.
Apr.
May
Aug.
Aug.
Sept.
Dec.

C-1921
. . . .

Outstanding
J u n e 30,1920.

i26,783,566
130,000
157,654, 500
1 10, 000
232,124,000
118,660,000
192,026,500
1 5, 000
132, 886,500
1 1,000

153,646, 000
79,015,000
169,007, 500
20,000
102,855,000
31,000
176,578, 500
126,749, 500
30,000
2,162,000
10, 000
230, 981,000
118,584,000

.

,

$500
10,000
500
2,000
5,500
3,500
1,000
1,500
1,000

hj
O
pi
H
O

1,000

H

W
3,500

>
4,000
500
26,000

O
Ul

10,000
25,500
34,000
$155,492, 500
1,143,000
76,000
192,026, 500

5,000
4,000, 000
1,000

128,886, 500

^H-1921

5^ 1 A n r . 15.1921

. . .

A-1922

5'^

May

16,1921

Oct.

15,1921

F e b . 16,1922

T o t a l l o a n issues

681,392,000

T a x issues:
M a t u r e d J u n e 30,1920—
J a n . 2. 1918
. . .
A u g . 20,1918
T-2
T-5...:
T-6
... .
T-7
T-8
T-9
. TM-3-1920
TJ-1920.
TM-4-1920
-.
U n m a t u r e d J u u e 30,1920—
T-10
.
TD-1920.....
' TM-1921...

tl
.

. ..
. . ..

4^
41
4J
4i
4^

4i
6

TM-2-1921..
TM-3-1921.

.11

TS-1921

6

TM-4-1921

5f

TJ-2-1921

51

T.D-1921..

6

TS-2.

1,349,000

J u n e 25,1918
J u l v 15,1919
J u n e 17,1919
Dec. 15,1919
S e p t . 15,1919
Dec. 15,1919
Mar. 15,1920
do
do
J u n e 15,1920
Mar. 15,1920

3,000
36,500
29,500
4,000
1,000
1,000
143,000
26,500
38,000
4,331,000
• 63,000

1,000
10,000
2,000
4,000
1,000
1,000
133,000
26,-500
35,000
4,289,500
58,000

Sept. 15,1920

657,469,000

33,500

Jan.
2,1920
Mar. 15,1920

Dec. 15,1920
Mar. 15,1921

703,026,000
201,370,500

657,435,500
16,000
702,835,500
201,172,500
1,453,000
237,117,000
15,000
74,129,000
106,6i;6,500
37,000

5^
.

.

51
5i

1 i, 453,666
J u n e 15,1920
J u l y 15,1920
S e p t . 15,1920
do
Oct.

J u n e 15,1921

242,517,000

Mar. 15,1921
.do
. S e p t . 15,1921

15,1920

Mar. 15,1921

D e c . 15,1920

J u n e 15,1921

do

Dec. 15,1921

M a r . 15,1921

Sept. 15,1921

do........

Mar. 15,1922

J u n e 15,1921

J u n e 15.1922
1,809,059.. 000

2
6
Various.

923,087,000

2.000
26,500
27,500

1 15,000
74,278,000
106,626,500
1 37,000
341,969,500
1 24,000
124,252,500
15,oob
188,123,000
1 21,000
401,557,500
1 31,000
193,302,000
1 12,000
288,501,000
1 1,000
314,184, oao
1 1,615,000
2,032,794,000
2 187,338,000




212,000
1,163,772,500

Jan.
2,1918
A u g . 20,1918
J a n . 16,19.19
J u n e 3,1919
July
1,1919
do
J u l y 15,1919
S e p t . 15,1919
Dec. 1,1919
Dec. 15,1919
F e b . 2,1920

T o t a l t a x issues
.Pittman A c t .
Special ( W a r F i n a n c e Corporation)
Special ( s h o r t t e r m )

256,170,000

1 16,000
4i

TJ-1921..

TJ-1922

190,511, 500
115,000

S e p t . 15,1919

4
4
4-1
4i

.

TM-1922...

190,511,500
1115,000
256,170,000
1212,000
1,406,816, 500

Various
S e p t . 22,1920
Various

Denominational exchange.

Various
Sept. 22,1921
Various

259,375,000
24,000,000

32, 854,450
5,014,500, OCO

10,000
Ul

3,000
41,500
5,000

o

S
>

190,500
198,000
5,400,000

o
>^

149,000
10,000

H
Pi
341,969,500

24,000
124,059,000
•5,000
186,518,000
21,000
12,000.000
31; 000

193,500

>

1,605,000

Ul

389,557,500
193,302,000

12,000
288, 501,000
•

1,000
314,184,000

1, 615,000
2,306,444,000
187,338,000
43, 500,000
5,038,500,000

2 Traiisfer.

7,895,000

1, 527,514, 000
215,875,000
32,854,450

d
w

Issues and retirements—Certijicates of indebtedness—Continued.
C5

RECAPITULATION.
O u t s c a n d i n g J u n e 30,1920.

O u t s t a n d i n g J u n e 30, 1921.

Title.

° Issued.
Matured.

Unmatured.

Total.

Loan issues

• $224,000

$681,168,000

$681,392^000

Tax issues

4,676,500

1,804,382,500

1,809,059,000

Pittman Act
War Finance Corporation
Special (short term)

Total




,Retued.
Matured.

1 $212,000
1,406,816,500
11.615,000
2,032,794,000
2 187,338,000

$212,000
1,163,772,500
1,615,000
2,306,444,000
187,338,000
43,500,000

259,375,000

.:

4,900,500

259,375,000

24,000,000

• •

. 24,000,000

32,854,450
5,014,500,000

2,773, 826, 009

1,827,000
187,338.000
8, 552, 216,500

Total.

$1,349,000

$923,087,000

$924,436,000

7,895,000

1,527.514,000

1,535,409,000

215,875,000
32,854,450

215,875,000
32,854,450

5,038,500,000

1 1,827,000
2187.338,000
8,486; 964,950

Unmatured.

2,768,925,500

^ Denominational exchange.

o

pi
H
O
9,244,000

2,699,330,450

2 708 574 450

2 Transfer.

o
Ul

SECRETARY OF THE TREASURY.

177

E X H I B I T 3.
[Department Circular No. 214. Loans and Currency.]
U N I T E D S T A T E S OF A M E R I C A — T R E A S U R Y C E R T I F I C A T E S OF
I N D E B T E D N E S S . DATED AND BEARING I N T E R E S T FROM DEC E M B E R 1 5 , 1 9 2 0 . S E R I E S T J 2 - 1 9 2 1 , 6f P E R C E N T , D U E J U N E 1 6 ,
1 9 2 1 . S E R I E S T D - 1 9 2 1 , 6 P E R CENT, D U E D E C E M B E R 15, 1 9 2 1 . .

The Secretary of the Treasury, under the authority of the act
approved September 24, 1917,, as amended, offers for subscription,
at par and accrued interest, through the Federal Reserve Banks,
Treasury certificates of indebtedness, in two series, both dated and
bearing interest from December 15, 1920, the certificates df Series
T J2-1921 being payable on June 15, 1921, and bearing interest at
the rate of five and three-quarters per cent per annum, and the certificates of Series T D-1921 being payable on December 15, 1921,
and bearing interest at the rate oi six per cent per annum, payable
semiannually.
Applications will be received at the Federal Reserve Banks.
Bearer certificates will be issued in denominations of $500, $1,000,
$5,000, $10,000, and $100,000. The certificates of Series T J2-1921
will have one interest coupon attached payable June 15, 1921, and
the certificates of Series T D-1921 two interest coupons attached,
payable June 15 and December 15, 1921.
The certificates of both said series shall be exempt, both as to principal and interest, from all taxation now or hereafter imposed by
the United States, any State, or any of the possessions of the United
States, or by any local taxing authority, except (a) estate or inheritance taxes, and (b) graduated additional income taxes, commonly
known as surtaxes, and excess profits and war-profits taxes, now or
hereafter imposed by the United States, upon the income or profits
of individuals, partnerships, associations, or corporations.' The
interest on an amount of bonds and certificates authorized by said
act approved September 24, 1917, and amendments thereto, the
rincipal of which does not exceed in the aggregate $5,000, owned
y any individual, partnership, .association, or. corporation, shall be
exempt from the taxes provided for in clause (b) above.
Certificates of these series will be accepted at par, with an adjustment of accrued interest, during such time and under such rules and
regulations as shall be prescribed or approved by the Secretary of
the Treasury, in payment of income and profits taxes payable at the
maturity of the certificates, respectively. The certificates of these
series do not bear the circulation privilege.
The right is reserved to reject any subscription and to allot less
than the amount of certificates of either or both series applied for
and to close the subscriptions as to either or both series at any time
without notice. Payment at par and accrued interest for.certificates
allotted must be made on or oefore December 15, 1920, or on later
allotment. After allotment and upon-payment Federal Reserve
Banks may issue interim receipts pending delivery of the definitive
certificates. Any qualified depositary will be permitted to make
payment by credit for certificates allotted to it for itself and its
customers up to any amount for which it shall be qualified in excess
of existing deposits when so notified by the Federal Reserve Bank of

E

70073—FI 1921



12

178

REPORT ON THE FINANCES.

its district. Treasury certificates of indebtedness of Series T.D-1920",
maturing December 15, 1920, of Series A-1921, maturing January 3,
1921, and of Series B-1921, maturing January 15, 1921, will be
accepted at par, with an adjustment of accrued interest, in payment
for any certificates of the Series T J2-1921 or T D-1921 now offered
which shall be subscribed for and allotted.
As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions and to make
allotment in full in the order of the receipt of applications up to
amounts indicated by the Secretary of the Treasury to the Fecieral
Reserve Banks of the respective districts.
D. F. HOUSTON,

Secretary of tlie Treasury.
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,

. ^

December 8,1920.
To

THE INVESTOR:

Almost any banking institution in the United States will handle your subscription
for you, or you may make subscription direct to the Federal Reserve Bank of your
district. Special attention is invited to the terms of subscription as stated above.
If you desire to purchase certificates of the above issues after the subscriptions close,
or certificates of any outstanding issue, you should make application to your own
bank, or if it can not obtain them for you, to the Federal Reserve Bank of your district.
EXHIBIT

4.

[Department Circular No. 222. Loans and Currency.]

UNITED S T A T E S OF AMERICA—TREASURY CERTIFICATES OF INDEBTEDNESS. DATED AND BEARING INTEREST FROM JANUARY 16, 1921. SERIES E 1921, 5^ P E R CENT, DUE APRIL 15,
1921. SERIES F 1921, 5f P E R CENT, DUE OCTOBER 15, 1921.

The Secretary of the Treasury, under the authority of the act
approved September 24, 1917, as amended, offers for subscription, at
par and accrued interest, through the Federal Reserve Banks,
Treasury certificates of indebtedness, in two series, both dated and
bearing interest from January 15, 1921, the certificates of Series E
1921 being payable on April' 15, 1921, with interest at the rate of
five and one-half per cent per annum, and the certificates of Series
F 1921 being payable on October 15, 1921, with interest at the rate
of five and tnree-quarters per cent per annum.
Applications will be received at the Federal Reserve Banks.
Bearer certificates will be issued in denominations of $500, $1,000,
$5,000, $10,000, and $100,000. The certificates of Series E 1921 will
have one interest coupon attached, payable April 15, 1921, and the
certificates of Series F 1921 two interest coupons attached, one for
semiannual interest payable July 15, 1921, and the other payable
October 15, 1921.
The certificates of said series shall be exempt, both as to principal
and interest, from all taxation now or hereafter imposed by the
United States, any State, or any of the possessions of the United
States, of by any local taxing authority, except (a) estate or inheritance taxes, and (&) graduated additional income taxes, commonly
known as surtaxes, and excess-profits and war-profits taxes, now or
hereafter imposed by the United States, upon the income or profits




SECRETARY OE THE TREASURY.

179

of individuals, partnerships, associations, or corporations. The interest on an amounts'of bonds and certificates autnorized by said act
approved September 24, 1917, and amendments thereto, the principal
of which does not exceed in the aggregate $5,000, owned by any
individual, partnership, association, or corporation, shall be exempt
from the taxes provided for in clause (b) above.
^ The certificates of these series do not bear the circulation privilege,
and will not be accepted in payment of taxes.
The right is reserved to reject any subscription and to allot less
than the amount of certificates of either or both series applied for
and to close the subscriptions as to either or both series at any time
without notice. Payment at par and accrued interest for certificates
allotted must be made on or before January 15, 1921, or on later
allotment. After allotment and upon payment Federal Reserve
Banks may issue interim receipts pending delivery of the definitive
certificates. Any qualified depositary will be permitted to make
payment by credit for certificates allotted to it for itself and its
customers up to any amount for which it shall be qualified in excess
of existing deposits when so notified by the Federal Reserve Bank of
its district. Treasury certificates of indebtedness of Series B-1921,
maturing January 15, 1921, will be accepted at par, with an adjustment of accrued interest, in pa3^ment for any certificates of the Series
E 1921 or F 1921 now offered which shall be subscribed for and
allotted.
As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions and to make
allotments in full in the order of the receipt of applications up to
amounts indicated by the Secretary of the Treasury to the Federal
Reserve Banks of the respective districts.
D. F. HOUSTON,

Secretary of the Treasury.
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,

January 10, 1921.
To THE INVESTOR:

Almost any banking institution in the United States will handle your subscription .
for you, or you may make subscription direct to the Federal Reserve Bank of your
district. Special attention is invited to the terms of subscription as stated above.
If you desire to purchase certificates of the above issues after the subscriptions close,
or certificates of any outstanding issue, you should make application to your own
bank, or if it can not obtain them for you, to the Federal Reserve Bank of your district.
E X H I B I T 5.
[Department Circular No. 227. Loans and Currency.]

UNITED STATES OF AMERICA—FIVE AND ONE-HALF P E R CENT
T R E A S U R Y C E R T I F I C A T E S O F INDEBTEDNESS.

SERIES G 1921.

DATED AND BEARING INTEREST FROM FEBRUARY 15, 1 9 2 1 .
DUE JULY 15, 1921.

The Secretary of the Treasury, under the authority of the act
approved September 24, 1917, as amended, offers for subscription,at par and accrued interest, through the JFederal Reserve Banks,
Treasury certificates of indebtedness, Series G 1921, dated and bear-




180

REPORT ON THE FINANCES.

ing interest from February 15, 1921, payable July 15, 1921, with
interest at the rate of five and one-half per cent' per annum.
Applications will be received at the Federal Reserve Banks.
- Bearer certificates will be issued in denominations of $500, $1,000,
$5,000, $10,000, and $100,000. The certificates will have one interest
coupon attached, payable July 15, 1921.
The certificates of said series shall be exempt, both as to principal
and interest, from all taxation now or hereafter imposed by the
United States, any State, or any of the possessions of the United
States, or by any local taxing authority, except (a) estate or inheritance taxes, and (b) graduated additional income taxes, commonly
known as surtaxes, and excess-profits and war-profits taxes, now or
hereafter imposed by the United States, upon the income or profits
of individuals, partnerships, associations, or corporations. The
interest on an amount of bonds and certificates authorized by said
act approved September 24, 1917, and amendments thereto, the
rincipal of which does not exceed in the aggregate $5,000, owned
y any individual, partnership, association, or corporation, shall be
exempt from the taxes provided for in clause (b) above.
The certificates of this series do not bear the circulation privilege
and will not be accepted in payment of taxes.
The right is reserved to reject any subscription and to allot less
than the amount of certificates applied for and to close the subscriptions at any time without notice. JPayment at par and accrued interest for certificates allotted must be made on or before February 15,
1921, or on later allotment. After allotment and upon payment
Federal Reserve Banks may issue interim receipts pending delivery of
the definitive certificates. Any qualified depositary will be permitted
. to make payment by credit for certificates allotted to it for itself and
its customers up to any amount for which it shall be qualified in excess
of existing deposits, when so notified by the Federal Reserve Bank of
its district.
As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions and to make allotment in full in the order of the receipt of applications up to amounts
indicated by the Secretary of the Treasury to the Federal Reserve
Banks of the respective districts.

E

D. F. HOUSTON,

Secretary of the Treasury.
TREASURY DEPARTMENT, .
OFFICE OF THE SECRETARY,

February 10, 1921.
TO.THE

INVESTOR:

Almost any banking institution in the United States will handle your subscription
for you, or you may make subscription direct to the Federal Reserve Bank of your
district. ' Special attention is invited to the terms of subscriptions as stated above.
If you desire to purchase certificates of the above issue after the subscriptions close,
or certificates of any outstanding issue, you should make application to your own bank,
or. if it can not obtain them for you, to the Federal Reserve Bank of your district.




SECRETARY OF T H E TREASURY.

181

E X H I B I T 6.
[Department Circular No. 232. Loans and Currency.]
U N I T E D S T A T E S O F A M E R I C A — T R E A S U R Y CERTIFICATES OF INDEBTEDNESS. DATED AND BEARING INTEREST FROM MARCH
15, 1921. SERIES T S2-1921, 5^ PER CENT, DUE SEPTEMBER 15,
1921. SERIES T M-1922, 5f PER CENT, DUE MARCH 15, 1922.

The Secretary of the Treasury, under the authority of the act
approved September 24, 1917, as amended, offers for subscription,
at par and accrued interest, through the Federal Reserve Banks,
Treasury certificates of indebtedness, in two series, both dated and
bearin*g, interest from March 15," 1921, the certificates of Series T
S2-1921 being payable on September 15, 1921, with interest at the
rate of five ancf one-half per cent per annum semiannually, and the
certificates of Series T M-1922 being payable on March 15, 1922,
and bearing interest at the rate of five and three-quarters per cent
per annum, payable semiannually.
Applications will be received at the Federal Reserve Banks.
Bearer certificates will be issued in denominations of $500, $1,000,
$5,000, $10,000, and $100,000. The certificates of Series T S2-1921
will have one interest coupon attached payable September 15, 1921,
and the certificates of Series T M-1922 two interest coupons attached,
payable September 15, 1921, and March 15, 1922.
The certificates of both said series shall be exempt, both as to
. principal and interest, from all taxation now or hereafter imposed
by the United States, any State, or any of the possessions of the
United States, or by any local taxing authority;, except (a) estate
or inheritance taxes, and (b) graduated additional income taxes,
commonly known as surtaxes, and excess-profits and war-profits
taxes, now or hereafter imposed by the United States, upon the
income or profits of individuals, partnerships, associations, or corporations. The interest on an amount of bonds and certificates authorized
by said act approved September 24, 1917, and amendments thereto,
the principal of which does not exceed in the aggregate $5,000,
owned by any individual, partnership, association, or corporation,
shall be exempt from the taxes provided for in clause- (b) above.
Certificates of these series will be accepted at par, with an adjustment of accrued interest, during such time and under such rules
and regulations as shall be prescribed or approved by the Secretary
of the Treasury, in payment of income and profits taxes payable
at the maturity of the certificates, respectively. The certificates of
these series do not bear the circulation privilege.
The right is reserved to reject any subscription and to allot less
than the amount of certificates of either or both series applied for
and to close the subscriptions as to either or both series at any time
without notice. Payment at par and accrued interest for certificates
allotted must be made on or before March 15, 1921, or on later
allotment. After allotment and upon payment Federal Reserve
Banks may issue interim receipts pending delivery of the definitive
certificates. Any qualified depositary will be permitted to make
payment by credit for certificates allotted to it for itself and its
customers up tb any amount for which it shall be qualified in excess




182

REPORT ON THE FINANCES.

of existing deposits when so notified by the Federal Reserve Bank
of its district. Treasury certificates of indebtedness of Series T
M-1921, Series T M2-1921, Series T M3-1921, and Series T M4-1921,
all maturing March 15, 1921, and of Series E 1921, maturing April
15, 1921, with any unmatured interest coupons attached, will be
accepted at par, with an adjustment of accrued interest, in payment
for any certificates of the Series T S2-1921 or T M-1922 now offered
which shall be subscribed for and allotted.
As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions and to make
allotment in full in the order of the receipt of applications up to
amounts indicated by the Secretary of the Treasury to the Federal
Reserve Banks of the respective districts.
A.

W.

MELLON,

Secretary of the Treasury.
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,

March 9, 1921.
T O THE INVESTOR:

Almost any banking institution in the United States will handle your subscription
for you, or you may make subscription direct to the Federal Reserve Bank of your
district. Special attention is invited to the terms of subscription as stated above.
If you desire to purchase certificates of the above issues after the subscriptions close,
or certificates of any outstanding issue, you should make application to your own
bank, or if it can not obtain them for you, to the Federal Reserve Bank of your district.
EXHIBIT

7.

[Department Circular No. 235. Loans and Currency.]

UNITED S T A T E S OF AMERICA—FIVE AND ONE-HALF P E R CENT
TREASURY CERTIFICATES OF INDEBTEDNESS, SERIES H 1921.
DATED AND BEARING I N T E R E S T FROM APRIL 15, 1921. DUE
OCTOBER 15, 1921.

The Secretary of the Treasury, under the authority of the act
approved September 24, 1917, as amended, offers for subscription,
at par and accrued interest, through the Federal Reserve Banks,
Treasury certificates of indebtedness, Series H 1921, dated and bear^
ing interest from April 15, 1921, payable October 15, 1921, with semiannual interest at the rate of five and one-half per cent per annum.
Applications will be received at the Federal Reserve Banks.
Bearer certificates will be issued in denominations of $500, $1,000,
$5,000, $10,000, and $100,000. The certificates will have one interest couppn attached, payable October 15, 1921.
The certificates of said series shall be exempt, both as to principal
and interest, from all taxation now or hereafter imposed by the
United States, any State, or any of the possessions of the United
States, or by any local taxing authority, except (a) estate or inheritance taxes, and (6) graduated additional income taxes, commonly
known as surtaxes, and excess-profits and war-profits taxes, now or
hereafter imposed by the United States, upon the income or profits
of individuals, partnerships, associations, or corporations. Thei interest on an amount of bonds and certificates authorized by said act




SECRETARY OF THE TREASURY.

183

approved September 24, 1917, and amendments thereto, the principal
of which does not. exceed in the aggregate $5,000, owned by any
individual, partnership, association, or corporation, shall be exempt
from the taxes provided for iucclause (b) above.
The certificates of this series do not bear the circulation privilege
and will not be accepted in payment of taxes.^
The right is reserved to reject any .subscription and to allot less
than the amount of certificates applied for and to close the subscriptions at any time without notice. Payment at par and accrued interest for certificates allotted must be made on or before April 15, 1921,
or on later allotment. After allotment and upon payment Federal
Reserve Banks may issue interim receipts pending delivery of the
definitive certificates. Any qualified depositary will be permitted to
make payment by credit for certificates allotted to it for itself and
its customers up to any amount for which it shall be qualified in
excess of existing deposits, when so notified by the Federal Reserve
Bank of its district. Treasury certificates of indebtedness of Series
E 1921, maturing April 15, 1921, and of Series D 1921, maturing
May 16, 1921 (with any unmatured interest coupons attached), will
be accepted at par, with an adjustment of accrued interest, in payment for any certificates of the Series H 1921 now offered which shall
be subscribed for and allotted.
As fiscal agents of the United States, Federal Reserve Banks are.
authorized and requested to receive subscriptions and to make allotment in full in the order of the receipt of applications up to amounts
indicated by the Secretary of the Treasury to the Federal Reserve
Banks of the respective districts.
A. W.

MELLON,.

Secretary ofthe Treasury.
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,

April 11, 1921.
To

THE INVESTOR:

- '

Almost any banking institution in the United States will handle your subscription
for you, or. you may make subscription direct to the Federal Reserve Bank of your
district. Special attention is invited to the terms of subscription as stated above.
If you desire to purchase certificates of the above issue after the subscriptions close,
or certificates of any outstanding, issue, you should make application to your own
bank, or if i t can not obtain them for you, to the Federal Reserve Bank of your district.
EXHIBIT

8.

[Department Circular No. 238. Loans and Currency.]
U N I T E D STATES OF AMERICA—FIVE AND ONE-HALF P E R CENT
T R E A S U R Y C E R T I F I C A T E S OF I N D E B T E D N E S S , S E R I E S - A - 1 9 2 2 .
DATED AND B E A R I N G I N T E R E S T FROM MAY 16, 1921. D U E
F E B R U A R Y 16, 1922.

The Secretary of the Treasury, under the authority of the. act
approved September 24, 1917, as amended, offers for subscription,
a t par and accrued interest, through the Federal Reserve Banks,
Treasury certificates of indebtedness, Series A-1922, dated and
bearing interest from May 16, 1921, payable February 16, 1922, with
interest at the rate of five and one-half per cent per annum.




184

REPORT ON THE FINANCES.

Applications will be received at the Federal Reserve Banks.
Bearer certificates will be issued in denominations of $500, $1,000,
$5,000, $10,000, and $100,000. The certificates will have two interest
coupons attached, one for semiannual ijiterest payable November 16,
1921, and the bther payable February 16, 1922.
The certificates of said series shall be exempt, both as to principal
and interest, from all taxation now or hereafter imposed by the
United States, any State, or any of the possessions of the United
States, or by any local taxing authority, except (a) estate or inheritance
taxes, and (b) graduated.additional income taxes, commonly known as.
surtaxes, and excess-profits and war-profits taxes, now or hereafter
imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corporations. The interest on am
ainount of bonds and certificates authorized by said act approved
September 24, 1917, and amendments thereto, the principal oi which
does not exceed in the aggregate $5,000 owned by any individual,
partnership, association, or corporation, shall be exempt from the
taxes provided for in clause (b) above.
The certificates of this series do not bear the circulation privilege
and will not be accepted in payment of taxes.
The right is reserved to reject any subscription and to allot less than
the amount of certificates applied for and to close the subscriptions
at any time without notice, r a y m e n t at par and accrued interest for
certificates allotted must be made on or before May 16, 1921, or on
later allotment. After allotment and upon payment Federal Reserve
Banks may issue interim receipts pending delivery of the definitive
certificates. Any qualified depositary will be permitted to make
payment by credit for certificates allotted to it for itself and its
customers up to any amount for which it shall be qualified in excess
of existing deposits, when so notified by the Federal Reserve Bank
of its district. Treasury certificates of indebtedness of Series D-1921,
maturing May 16, 1921, will be accepted at par, with an adjustment
of accrued interest, in payment for any certificates of the Series
A-1922 now offered whicn shall be subscribed for and allotted.
As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions and to make
allotment in full in the order of the receipt of applications up to
amounts indicated by the Secretary of the Treasury to the Feaeral
Reserve Banks of the respective districts.
A. W.

MELLON,

Secretary ofthe Treasury.
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,

„

.

.

May 11, 1921.
To

THE

INVESTOR:

Almost any banking institution in the United States will handle your subscription
for you, or you may make subscription direct to the Federal Reserve Bank of your
district. Special attention is invited ,to the terms of subscription as stated above.
If you desire to purchase certificates of the above issue after the subscriptions cl,ose,
or certificates of any outstanding issue, you should make application to your own
bank, or if it can not obtain them for you, to the Federal Reserve Bank of your district..




SECRETARY OF T H E TREASURY.
EXHIBIT

185

9.

[Department Circular, No. 241. Loans and Currency.]
U N I T E D S T A T E S OF A M E R I C A - ^ F I V E AND O N E - H A L F P E R CENT
T R E A S U R Y C E R T I F I C A T E S OF I N D E B T E D N E S S , S E R I E S T J - 1 9 2 2 .
DATED AND BEARING I N T E R E S T FROM JUNE 15, 1921. DUE
J U N E 15, 1922.
^

The Secretary of the Treasury, under the authority of the act
approved September 24, 1917, as amended, offers for suoscription, at
par and accrued interest, through the Federal Reserve Banks,
Treasury certificates of indebtedness. Series T J-1922, dated and
bearing interest from June 15, 1921, payable June 15, 1922, with
interest at the rate of five and one-half per cent per annum, payable
semiannually.
Applications will be received at the Federal Reserve Banks.
Bearer certificates will be issued in denominations of $500, $1,000,
$5,000, $10,000, and $100,000. The certificates/will have two
interest coupons attached, payable December 15, 1921, and June 15,
1922.
The certificates of said series shall be exempt, both as to principal
and interest, from all taxation now or hereafter imposed by the
United States, any State, or any of the possessions of the United
States, or by any local taxing authority, except (a) estate or inheritance taxes, and (b) graduated additional income taxes, commonly
known as surtaxes, and excess-profits and war-profits taxes, now or
hereafter imposed by the United States, upon the income or profits
of individuals, partnerships, associations, or corporations. The
interest on an amount of bonds and certificates authorized by said
act approved September 24, 1917, and amendments thereto, the
principal of which does not exceed in the aggregate $5,000, owned by
any individual, partnership, association, or corporation,. shall be
exempt from the taxes provided for in clause (6) above.
Certificates of this series will be accepted at par, with an. adjustment of accrued interest, during such time and under such rules and
regulations as shall be prescribed or approved by the Secretary of the
Treasury, in pa3anent of income and profits taxes payable at the
maturity of the certificates. The certificates do not Dear the circulation privilege.
The right is reserved to reject any subscription and to allot less than
the amount of certificates applied for and to close the subscriptions at
any time without notice, r a y m e n t at par and accrued interest for
certificates allotted must be made on or before June 15, 1921, or
on later allotment. After allotment and upon payment Federal
Reserve Banks may issue interim receipts pending delivery of the
definitive certificates. Any qualified depositary will be permitted to
make payment by credit for certificates allotted to it for itself and its
customers up to any amount for which it shall be qualified in excess
of existing deposits, when so notified by the Federal Reserve Bank
of its district. Treasury certificates of indebtedness of Series T
J-1921 and Series T J2-1921, both maturing June 15, 1921, and of
Series G 1921, maturing July 15, 1921, and Series C 1921, maturing
August 16, 1921, with any unmatured interest coupons attached,




186

REPORT ON T H E FINANCES.

will be accepted at par, with an adjustment of accrued interest, in
payment for any certificates of the Series T J-1922 now offered which
shall be subscribed for and allotted.
As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions and to make allotment in full in the ordegof the receipt bf applications up to amounts
indicated by the Secretary of the Treasury to the Federal Reserve
Banks of the respective districts.
A. W. MELLON,

Secretary of the Treasufy.
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,

June 8, 1921.
To

THE

INVESTOR:

Almost any banking institution in the United States will handle your subscription
for you, or you may make subscription direct to the Federal Reserve Bank of your
district. Your special attention is invited to the terms of subscription and allotment
as stated above. If you desire to purchase certificates of the above issue after the
subscriptions close, or certificates of any outstanding issue, you should make application to your own bank, or if it can not obtain them for you, to the Federal Reserve
Bank of your district.
E X H I B I T 10.
[Department Circular No. 246. ,Loans and Currency.]
U N I T E D STATES OF AMERICA—TREASURY C E R T I F I C A T E S OF INDEBTEDNESS. DATED AND BEARING INTEREST FROM AUGUST
1, 1 9 2 1 . S E R I E S T M 2 - 1 9 2 2 , 5 i P E R C E N T , D U E M A R C H 1 5 , 1 9 2 2 .
S E R I E S B - 1 9 2 2 , 5^ P E R C E N T , D U E A U G U S T 1, 1 9 2 2 .

The Secretary of the Treasury, under the authority of the act
approved September 24, 1917, as amended, offers for subscription,
at par and accrued interest, through the Federal Reserve Banks,
Treasury certificates of indebtedness, in two series, both dated and
bearing interest from August 1, 1921, the certificates of Series TM21922 being payable on March 15, 1922, with interest at the rate of five
and one-quarter per cent per annum, and the certificates of Series
B-1922 being payable on August 1, 1922, with interest at the rate of
five and one-half per cent per annum, payable, semiannually.
Applications will be received at the Federal Reserve Banks.
Bearer certificates will be issued in denominations of $500, $1,000,
$5,000, $10,000, and $100,000. The certificates of Series TM2-1922
will have one interest coupon attached, payable March 15, 1922, and
the certificates of Series B-1922 two interest coupons attached, payable February 1, 1922, and August 1, 1922.
The certificates of said series shall be exempt, both as to principal
and interest, from all taxation now or hereafter imposed by the United
States, any State, or any of the possessions of the United States, or
by any local taxing authority, except {a) estate or inheritance taxes,
and (&) graduated additional income taxes, commonly known as surtaxes, and excess-profits and war-profits taxes, now or hereafter im-.
posed by the United States, upon tne income or profits of individuals,
partnerships, associations, or corporations. The interest on an
amount of bonds and certificates authorized by said act approved
September 24, 1917, and amendments thereto, the principal of which




SECRETARY OF THE TREASURY.

187

does not exceed in the aggregate $5,000, owned by any individual,
partnership, association, or corporation, shall be exempt from the
taxes provided for in. clause (6) above.
The certificates of these series do not bear the circulation privilege,
and the certificate of Series B-1922 will not be accepted in payment
of taxes. The certificates of Series TM2-1922 will be accepted at par,
with an adjustment of accrued interest, during such time and under
such rules and regulations as shall be prescribed or approved by the
Secretary of the Treasury, in payment of income and profits taxes
payable at the maturity of the certificates.
The right is reserved to reject any subscription and to allot less
t h a n the amount of certificates of either or both series applied for and
to close the subscriptions as to either or both series at any time without
notice. Payment at par and accrued interest for certificates allotted^
must be made on or before August 1, 1921, or on later allotment.
After allotment and upon payment Federal Reserve Banks may issue
interim receipts pending delivery of the definitive certificates. Any
qualified depositary will be permitted to make payment by credit for
certificates allotted to it for itself and its customers up to any amount
for which it shall be qualified in excess of existing deposits when so
notified by the Federal Reserve Bank of its district. Treasury certificates of indebtedness of Series C-1921, maturing August 16, 1921,
with any unmatured interest coupons attached, will be accepted at
par, with an adjustment of accrued interest, in payment for any certificates of the Series TM2-1922 or B-1922 now offered which shall
be subscribed for and allotted.
As fiscal agents of the United States, Federar Reserve Banks are
authorized and requested to receive subscriptions and to make allotments in full in the order of the receipt of applications up to amounts
indicated by the Secretary of the Treasury to the Federal Reserve
Banks of the respective districts.
. A. W. MELLON,

Secretary ofthe' Treasury.
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,

^

July 27, 1921.
To

THE INVESTOR:

Almost any banking institution in the United States'will handle your subscription
for you, or you may make subscription direct to the Federal Reserve Bank of your
district. Your special attention is in^dted to the iterms of subscription and allotment as stated above. If you desire to purchase certificates of the aboye issues after
the subscriptions close, you should make application to your own bank, or if it can
not obtain them for you, to the Federal Reserve Bank of your district.
EXHIBIT

11.

[Department Circular No. 255. Loans and Currency.]

UNITED STATES OF AMERICA—TREASURY CERTIFICATES OF INDEBTEDNESS. DATED AND BEARING INTEREST FROM SEPTEMBER 15, 1921. SERIES TM3-1922, 5 P E R CENT, DUE MARCH
15, 1922. SERIES TS-1922, 5 i P E R CENT, DUE SEPTEMBER 15,
1922.

The Secretary of the Treasury, under the authority of the act approved September 24, 1917, as amended, offers for subscription, at




188

REPORT ON THE FINANCES.

par and accrued interest, through the Federal Reserve Banks, Treasury certificates of indebtedness, in two series, both dated and bearing interest* from September 15, 1921, the certificates of Series T M 3 1922 being payable on March 15, 1922, with interest at the rate of
five per cent per annum semiannually, and the certifi^cates of SeriesTS-1922 being payable on September 15, 1922, with interest at the
rate of.five and one-quarter per cent per annum, payable semiannually.
Applications will be received at the Federal Reserve Banks.
Bearer certificates will be issued in denominations of $500, $1,000,
$5,0Q0, $10,000, and $100,000. The certificates of Series TM3-1922'
will have one interest coupon attached, payable March 15, 1922, and
the certificates of Series TS-1922 two interest coupons attached, pay-^
able March 15, 1922, and September 15, 1922.
The certificates of said series shall be exempt, both as to principal
and interest, from a41 taxation now or hereafter imposed by the
United States, any State, or any of the possessions of the United
States, or by any local taxing authority, except (a) estate or in-^
heritance taxes, and (b) graduated additional income taxes, commonly known as surtaxes, and excess-profits and war-profits taxes,,
now or hereafter imposed by the United States, upon the income or
profits of individuals, partnerships, associations, or corporations.
The interest on an amount of bonds and certificates authorized by^
said act approved September 24, 1917, and amendments thereto,
the principal of which does not exceed in the aggregate $5,000,.
owned by any individual, partnership, association, or corporation,,
shall be exempt from the taxes provided for in clause (b) above.
The certificates of these series will be accepted at par, with an adjustment of accrued interest, during such time and under such rulesand regulations as shall be prescribed or approved by the Secretary
of the Treasury, in payment of income and profits taxes payable at
the maturity of the certificates. The certificates of these series donot bear the circulation privilege..
The right is reserved to reject any subscription and to allot lessthan the amount of certificates of either or both series applied for
and to close» the subscriptions as to either or both series at any timewithout notice. Payment at par and accrued interest for certificates
allotted must be made on or before September 15, 1921, or on later
allotment. After allotment and upon payinent Federal Reserve
Banks may issue interim receipts pending delivery of the definitivecertificates. Any qualified depositary will be permitted to make
payment by credit for certificates allotted to it for itself and its cus-^
tomers up to any amount for which it shall be qualified in excess of
existing deposits when so notified by the Federal Reserve Bank of itsdistrict. Treasury certificates of indebtedness of Series TS-1921 and
Series TS2-1921, both maturing. September 15, 1921, and of SeriesF-1921 and Series H-1921, both maturing October 15, 1921, witk
any unmatured interest coupons attached, will be accepted at par,.
with an adjustment of accrued interest, in paynient for any certificates of the Series TM3-1922 or TS-1922 now offered which shall besubscribed for and allotted.




SECRETARY OF THE TREASURY.

189

As >fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions and to make allotments in full in the order of the receipt of applications up to amounts'
indicated by the Secretary of the Treasury to the Federal Reserve
Banks of the respective districts.
A. W. MELLON,

Secretary of the Treasury.
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,

September 9, 1921.
T O THE INVESTOR:

Almost any banking institution in the United States will handle your subscription
ior you, or you may make subscription direct to the Federal Reserve Bank of your
district. Your special attention is invited to the terms of subscription and allotment
as stated above. If you desire to purchase certificates of the above issues after the
subscriptions close, or certificates of any outstanding issue, you should make" application to your own bank, or if it can not obtain them for you, to the Federal Reserve
Bank of your district.
Exi-HBIT 12.
[Department Circular No. 264. Loans and Currency.]

UNITED STATES OF AMERICA—TREASURY CERTIFICATES OF
INDEBTEDNESS. DATED AND BEARING INTEREST FROM NOVEMBER 1, 1921. SERIES C-1922, 4y4 PER CENT, DUE APRIL 1, 1922.
S E R I E S TS 2-1922, 4V2 PER CENT, DUE SEPTEMBER 15, 1922.

The Secretary of the Treasury, under the authority of the act
approved September 24, 1917, as amended, offers for subscription,
at par and accrued interest, through the Federal Reserve Banks,
Treasury certificates of indebtedness, in two series, both dated and
bearing interest from November 1, 1921, the certificates of Series
0-1922 being payable on April 1, 1922, with interest at the rate of
four and one-quarter per cent per annum, and the certificates of
Series TS 2-1922 being payable on September 15, 1922, with semiannual interest at the rate of four and one-half per cent per annum.
Applications will be received at the Federal Reserve Banks.
Bearer certificates will be issued in denominations of $500, $1,000,
$5,000, $10,000, and $100,000. The certificates of Series C-1922
will have one interest coupon attached, payable April 1, 1922, and
the certificates of Series TS 2-1922 two interest coupons attached,
payable May 1, 1922, and September 15, 1922.
The certificates of said series shall be exempt, both as t o principal
and interest, from all taxation now or hereafter imposed by the
United States, any State, or any of the possessions of the United
States, or by any local taxing authority, except (a) estate or inheri. tance taxes, and (b) graduated additional income taxes, commonly
known as surtaxes, and excess-profits and war-profits taxes, now or
hereafter imposed by the United States, upon the income or profits
of individuals, partnerships, associations, or corporations. The
interest on an amount of bonds and certificates autnorized by said
act approved September 24, 1917, and amendments thereto, the
principal of which does not exceed in the aggregate $5,000, owned
by any individual, partnership, association, or corporation, shall be
exempt from the tax.es provided for in clause (b) above.




190

REPORT ON T H E FINANCES. -

' The certificates of these series do not bear the circulation piivilege/
and the certificates of Series C-1922 will not be accepted in payinent
of taxes. The certificates of Series TS 2-1922 will be accepted a t
par, with an adjustment of accrued interest, during such time and
under such rules and regulations as shall be prescribed or approved
by'the Secretary of the Treasury, in payment of income and profits
taxes payable at the maturity of the certificates.
The right is reserved to reject any subscription and to allot less
than the amount of certificates of either or both, series applied for
and to close the subscriptions as to either or both series at any time
without notice. Payment at par and accrued interest for certificates
allotted must be made on or before November 1, 1921, or on later
allotment. After allotment and upoii payment Federal Reserve
Banks may issue interim receipts pending delivery of the definitive
certificates. Any qualified depositary will be permitted to make
payment by credit for certificates allotted to it for itself and its
customers up to any amount for which it shall be qualified in excess
of existing deposits when so notified by the Federal Reserve Bank
of its district.
As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions and to make allotments in full in the order of the receipt of applications up to amounts
indicated by the Secretary of the Treasury to the Federal Reserve
Banks of the respective districts.
A. W. MELLON,

Secretary ofthe Treasury. •
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,

October 27, 1921.
To

THE I N V E S T O R :

Almost any banking institution in the United States will handle your subscription
for you, or you may raake subscription direct to the Federal Reserve Bank of your
district. Special attention if invited to the terms of subscription and allotment as
stated above. If you desire to purchase certificates of the above issues after t h e
subscriptions close, or certificates of any outstanding issue, you should make, application to your own bank, or if it can not obtain them for y^ou, to the Federal Reserve
Bank of your district.
E X H I B I T 13.
[Department Circular No. 240. Loans and Currency.]
U N I T E D STATES OF AMERICA—FIVE AND T H R E E - Q U A R T E R S P E R
CENT T R E A S U R Y NOTES, S E R I E S A-1924. DATED AND B E A R I N G
" I N T E R E S T FROM J U N E 15, 1921. DUE J U N E 15, 1924.

. The Secretary of the Treasury offers for subscription, at par and
accrued interest, through the Federal Reserve Banks, Treasury notes
of Series A-1924, of an issue of gold notes of the United States authorized by the Act of Congress approved September 24, 1917, as amended.
Thenotes will be dated and bear interest from. June 15, 1921, will be
payable June 15, 1924, and will bear interest at the rate of five and
three-quarters per cent per annum payable semiannually on December
15 and June 15 in each year.
Applications willbe received at the Federal Res'erve Banks.
Bearer notes with interest coupons attached will be issued in denominations of $100, $500, $1,000, $5,000, $10,000, and $100,000. The




-SECRETARY OF J H E

TREA;SURY.

191

notes are not subject to call for redemption before maturity, and will
hot be issued iii registered form. The principal and interest of the
notes willbe paiyablein United States gold coin of the present standard
•'of valtiev'••'/'; ••;../,
'./ • ; • . / . ' ; . ."•...^.:^,^;• , ; ^[/'''•,: •'. .\. .. '
- The notes of said series shall be exempt, both as to principal and
interest, frdm all taxation now or hereaiter imposed by the United
States, any State, or any of the possessions of the United States, or by
any local taxing authority, except (a) estate or inheritance taxes, and
(6) graduated additional income taxes, commonly known as surtaxes,
and excess-profits and war-profits taxes, now or hereafter imposed by
the United States, upon the income or profits of individuals, partnerships, associations, or corporations.
Notes of this series will be accepted at par, with an adjustment of
accrued interest, during such time and under such rules and regulations as shall be prescribed or apprbved by the Secretary of the Treasury > in payment of income and profits taxes,pay able at or within six
months before the maturity of t h e n o t e s . Any of the notes which
have been owned,by any person continuously for a t least six months
prior to the date of his death, and which upoii such date, constitute
art of his estate, shall, under rules and regulations prescribed by the
ecretary of the Treasury, be receivable by the United States at par
and accrued interest in payment of any estate or inheritance taxes
imposed by the United States, under or by virtue of any present or
future law upon such estate or the inheritance thereof. The notes of
this series will be acceptably to secure deposits of public moneys, but
do not bear the circulation privilege.
The right is reserved to reject any subscription and to allot less than
the amount of notes applied for and to close the subscriptions at any
time without notice, r a y m e n t at par and accrued interest for notes
allotted must be made on or:before June 15, 1921, or on later allotment. After allotment and upon payment Federal Reserve Banks
may issue interim receipts pending delivery of the definitive notes.
Any qualified depositary will be permitted to make payment by credit
for notes allotted to.it for itself and its customers up to any amount
for which it shall be qualified in excess of existing deposits, when so
notified by the Federal Reserve Bank of its district. Treasury certificates of indebtedness of Series TJ-1921 and Series TJ2-1921, both
maturing June 15,1921, and of Series G-1921, maturing July 15, 1921,
and Series C-l921, maturing August 16, 1921, with any unmatured
interest coupons attached, will be accepted a t par, with an adjustment
of accrued interest, in payment for any notes of the Series A-1924 now
offered which shall be subscribed for and allotted.
As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions and to make allotment in full in the order of the receipt of applications up to amounts
indicated by the Secretary of the Treasury to the Federal Reserve
Banks of the respective districts.

E

A. W.

MELLON,

Secretary of the Treasury.
T H E TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,




J u n e 8, 1921.

: 192

REPORT ON THE FINANCES. ^

' TO THE INVESTOR:

°

^

.

Almost any banking institution in the United States will handle your subscription
for you, or you may make subscription direct to the Federal Reserve Bank of your :
district; Your special attention is invited to the terms of subscription and allotment as stated above: If you desire to purchase notes of the above issue after the subscriptions close j you should naake application to your own bank, or if it can not
. obtain them for you, to the Federal Reserve Bank of your district. .
.
^
.

:

: '

EXHIBIT

14.

[Department Circular No. 256. Loans and Currency.]

UNITED STATES OF AMERICA—FIVE AND ONE-HALF P E R CENT
TREASURY NOTES, SERIES B-1924. DATED AND BEARING INTEREST FROM SEPTEMBER 15, 1921. DUE SEPTEMBER 16, 1924.

; The Secretary of the Treasury offers for subscription, at par and.
accrued interest, through the Federal Reserve Banks, Treasury
notes of Series B-1924, of aii issue of gold notes of the United States
authorized by the Act of Congress approved September 24, 1917,
as amended. The notes will be dated and bear interest from Sep- .
tember 15j 1921, will be payable September 15, 1924, aiid will bear
interest at the rate of five and one-half per cent per aimum payable
semiannually on March 15 and September 15 in each yeair.
Applications will be received at the Federal Reserve Banks.
Bearer notes with interest coupons attached will be issued in
denominations of $100, $500, $1,000, $5,000, $10,000, and $100,000.
The notes are not subject to call for redemption bef ore maturity, and
will n o t be issued in registered forrn. The principal and interest of;
the notes will be payable in United States gold coin of the present
standard of value.
•
•
The notes of said series shall be exempt, both as to principal and
interest, from all taxation now or hereafter imposed by the United
States, any St^ate, or any of the possessions of the Uhited States,.or
by any local taxing authority, except (a) estate or inheritance taxes,
and (6) graduated additional income taxes, pommonly known as
surtaxes, and excess-profits and war-profits taxes, now or hereafter
'imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corpprations.
:
'
Notes of this series will be accepted at par, with an adjustinent of
- acci-ued interest, during such time and under such-rules and regulations ais shall be prescribed or approved by the Secretary "of the
Treasury, in payinent of income aiid profits taxes payable at or
within six months hefore the maturity of the notes. Aiiy of the ,
notes which have beeii owned by any person continuoiisly for at
least six mohths prior to the date of his death, and which upon such
date constitute part of his estate, shall, uiider irules and regulations prescribed by the Secretary of the Treasury, be receivable by the
United States at par a n d accrued interest in payment of any estate
or inheritance taxes imposed b y ' t h e United Stately under or by virtue of any present or future law upon such estate or the inheritance thereof.^ The i ^ ^
^^
series will be acceptable to secure
deposits of public moneys, but do not bear t h e circulation privilege.
The right is reserved to reject any subscription arid to allot less
than the amount of notes applied for and to close the subscriptions
at any time without notice. Payment at par and accrued interest
' for notes allotted must be made on or before September 15, 1921, or



SECRJETARY OF T H E TREASURY.

,

193

on later alio tment .^ After Mlo tment and upon payment Federal.
Reserve Banks may issue interim receipts pending delivery of the
defihitive notes. Any qualified depositary will be permitted to
make payment by ci^edit for notes allotted to i t for itself and its
customers up to any ainount for which it shall be qualified in excess of
existing deposits, when so notified by the Federal Reserve Bank of
its district. ^ Treasury certificates of indebtedness of Series TS-1921
and Series TS2^i921, .both maturing September 15, 1921, and of
Series F-1921 arid Series H-192i, both maturing October 15/ 1921,
with-any unmatured interest coupoils attached, wil! be accepted at
par, with an-adjustment of accrued interest, in" payrnent for any
notes of the Series B-1924 now. offered,which shall be subscribed for
and allotted. ; ;
.
.
_
. '
' .'
- A s fiscal agents,of the United States, Federal Reserve Banks are
\authorized and requested to receive subsoriptions and to make
allotments in full in the order of the receipt of applications u p . t o
amounts indicated by the Secretary of the Treasury to the Federal
Reserve Banks of the respective districts.
, - ' .'.

...

,; A. W. MELLON,..

: r; .

Secretary of the T r e a s u r y . . -

•, T R E A S U R Y ^ ; D E P A ; R T M E N T /
'''
: •-•''•:,'
OFFICE OF THE SECRETARY,

:

;V ' :

T o THE INVESTOR:;

-

September 9, 1 9 2 1 . '

' '•

.'"••;•;-

/

.......

•
.

:.

Almost any banking institution in the United States will handle your subscription
for you, or you may make subscription direct to the Federal Reserve Bank of your
district.. Your special attentioii is invited tp the terms of subscription and allotoment as-stated above. If you desire to purchase notes of the above issue after the
subscriptions close, or .notes of any outstanding issue, you should make applicair
tion to your own bank, or if i t can not obtain them for you, to the Federal Reserve
Bankof your district.
- . . : - . : EXHIBIT

OFFER

15.

,

TO R E D E E M B E F O R E M A T U R I T Y , T R E A S U R Y
CATES OF I N D E B T E D N E S S , S E R I E S E 1 9 2 1 .

CERTIFI-

March collections of income and profits taxes have amounted to
slightly over $700,000,000 and have thus exceeded by about $125,- ,
000,000 the March 15th'maiturities of principal arid interest. This
margin is therefore available to meet other Treasury requirements,
includirig the Treasury certificates maturirig April 15, 1921, which
were oft'ered with a inaturity dhe month after the quarterly tax payment date in the expectation that they might be retired out of tax
receipts. The Secretary of the Treasury has accordingly authorized
the Federal Reserye Banks on and after Friday, April 1, 1921, and
until further notice to redeeni in cash before April 15, 1921, at the
holders^ option, at par and accrued interest to the date of such
optional redemption. Treasury certificates of indebtedness of Series
E-1921, maturing April 15, 1921.
.;
; :
^
OFFER

E X H I B I T 16.

T O R E D E E M BEFORE MATURITY, TREASURY
CATES OF I N D E B T E D N E S S , S E R I E S D 1 9 2 1 .

.
CERTIFI-

Secretary Mellon announced that he has authorized the Federal
Reserve Banks,on and after Saturday, April 30, 1921, and until fur> 7 0 d 7 3 — F I 1921-—.13




SECRETARY

OF THE TREASURY. ,

193

on later allotment.' After allotment and upoii payment Federal
Reserve Banks may issue interim receipts pending delivery of t h e
definitive notes. Any qualified depositary will be permitted to
make payment by credit for notes allotted to it for itself and its
customers up to any amount for which it shall be qualified in excess of
existing deposits, when so notified by the Federal Reserve Bank of
its district. , Treasury certificates of indebtedness of Series TS-1921
and Series TS2-1921, .both maturing September 15, 1921, and of
Series F-1921 and Series H-192i, both maturing October 15, 1921,
with any unmatured interest couporis attached, will be accepted at
par, with an-adjustrnent of accrued interest, iri payment for any
notes of the Series B-1924 now offered,which shall be subscribed for
and allotted. ;
,
.
• .
As fiscal agents uf the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions and to make
allotments in full in t h e order of the receipt of applications up to;
amounts indicated by the Secretary of the Treasury to the Federal
' Reserve Banks of the respective districts.
. ; A. W. MELLON,.

:

-

Secretary of the Treasury.

TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,

, •
T o THE INVESTOR:

,

.

~

September 9, 1 9 2 1 . '
'

•

^

Almost any banking institution in the United States will handle your subscription
for you, or you may make subscriptiori direct to the Federal Reserve Bank of your
district.. Your special attention is invited to the terms of subscription and allotoment as.stated above. If you desire to purchase notes of the above issue after the
subscriptions close, or .notes of any outstanding issue, you should make applicar
tion to your own bank, or if it can not obtain them for you, to the Federal Reserve
Bank of your district.
E X H I B I T 15. .

OFFER TO REDEEM BEFORE MATURITY, TREASURY CERTIFICATES OF INDEBTEDNESS, S E R I E S E 1921.

March collections of income and profits taxes have amounted to
slightly over $700,000,000 and have thus exceeded by about $125,-,
000,000 the March 15th'maturities of principal arid interest. This
margin is therefore available t o meet other Treasury requirements,
includirig the. Treasury certificates maturing April 15, 1921, which
were oft'ered with a'maturity one morith after the quarterly tax payment date in the expectation that they might be retired out of t a x
receipts. The Secretary of the Treasury has accordingly authorized
the Federal Reserve Banks on and after Friday, April 1, 1921, and
until further notice to redeem in cash before April 15, 1921, at the
holders' option, at par and accrued interest to the date of such
optional redemptiori. Treasury certificates of indebtedness of Series
E-1921, maturing April 15, 1921.
^
OFFER

TO REDEEM

E X H I B I T 16.
BEFORE

MATURITY, TREASURY

.
CERTIFI-

CATES OF INDEBTEDNESS, S E R I E S D 1921.

Secretary Mellon announced that he has authorized the Federal
Reserve.Banks on and after Saturday, April 30,^ 1921, and until fur, 70073—FI 1921-—13



SECRETARY

OF THE TREASURY.

EXHIBIT
OFFER

TO

REDEEM

BEFORE

195

21.

MATURITY, TREASURY

CERTIFI-

CATES OF INDEBTEDNESS, SERIES F-1921 AND H-1921.

Secretary Mellon annouriced t h a t he has authorized the Federal ^
Reserve Banks ori arid after Tuesday, September 27, 1921, and until,
further notice, to redeem in cash before October 15, 1921, at the
holder's option, a t par and accrued interest to the date of such
optional redemption. Treasury certificates of indebtedriess of Series
F-1921, dated January 15, 1921, and Series H-1921, dated April 15,
1921, both maturing October 15, 1921. .
\ ' ' ; •.; ' j ' " . ..;'. ' ' , - • ; : . . '

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^ E X H I B I T 22..-

; ;"--' ; • ' • , ' • " .

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LETTER OF SECRETARY OF THE TREASURY TO THE BANKS AND
T R U S T COMPANIES OF THE COUNTRY, ACCOMPANYING THE
OFFERING OF TREASURY CERTIFICATES OF INDEBTEDNESS
OF SERIES TJ2-1921 AND SERIES T D - 1 9 2 1 , BOTH DATED DE• .CEMBER 1 5 , 1920.;.:
- -:

'
'WA^sjiNGTOi^yT>.C., Decent
•.' ' .--'V.'.""'. . ' .
\ ' "'':-;
About $700,000,000 of Treasury certificates of indebtedness
mature on December 15, 1920, about $175,000,000 ori January 3,
1921, and about $125,000,000 addirtional on January 15, 1921. On
December* 15, 1920, there will also become payable the semi-annual
interest o n t h e First Liberty Loan aind the Victory Liberty Loan,
aggregating about $140,000,000. The greater part of the $700,000,000 of tax certificates maturing on December 15th will be covered by the installment of income and profits taxes payable on t h a t
date. In order to meet the remainder of these heavy maturities of
principal and interest, and at the same time provide for the current
requirements of the Government, the Treasury has decided, on the
basis of the Best estimates available at this time, to offer Treasury
certificates of indebtedness in the amount of $500,000,000, or thereabouts, in two series dated Deceinber 15, 1920, one series designated
T J 2-1921, bearing 5f per cent interest, maturing June 15, 1921,
and the other series designated TD-1921, bearing 6 per cent interest
and maturing December 15, 1921. Applications for Treasury certificates of these series will be received through the several Federal
Reserve Banks, from which full particulars concerning, the offering
may be obtairied. Treasury certificates of the series maturirig December 15, 1920, January 3, 1921, and January 15, 1921,, will be ac- '
cepted a t par with an adjustment of accrued interest in payment
for any certificates of the two series now offered which may be subscribed for and allotted.
As indicated in t h e circular letter of September 7, 1920, to t h e
banking institutions of the country, the operations of t h e T r e a s u r y
for the first quarter of the present fiscal year, ended September 30,
1920, showed a surplus of ordinary receipts over ordinary expenditures amounting to $289,224,706.29, notwithstaiiding actual cash
payments to railroads during the quarter of some $275,000,000
under the provisions of the Transportation Act, in corinection with
the return of the railroads to private control. The Treasury's curre,nt operations during the months of October and Noyeriibei' show a
•DEAR SIR:.,




196

.REPORT. ON THE FINANCES.

n e t current deficit (excess of ordinary disbursemerits over ordinary
receipts) amounting to $357,134,068.15, of which about $112,000,000
represerits' payriients to the railroads urider the Transportation Act.
The Treasury confideritly expepts, however, t h a t the currerit quarter,
ending December 31, 1920, will still shqw a substantial surplus as
the result of the quarterly paynient of iricome and profits tax:es in
December.
In consequence of the operations incident to the retiremerit of
. the^ Treasury certificates whioh ma,tured ori September 15 and
October 15, 1920, and the quarterly paymerit of income and profits
taxes" ori September 15th, the gross debt of the Government on October 31) 1920^ oil the basis of daily Treasury statements, was reduced to $24,062,^509,672. 96, of which about $2,337,000,000 consisted of loan and tax certificates unmatured. On September 30^
1920, t h e gross debt had been $24,087,356,128.65, of which about
$2)347,000,000 were loan arid tax certificates unmatured. On
November 30, 1920, after the issue of $232,000,000 of Treasury
oertificates ori November 15th and the retiremerit on the same date
of about $100,000,000 of maturing certificates, the gross debt, on
the basis of daily Treasury staternents, amounted to $24,175,156,244.14, of which about $2,475,000,000 represented floating .debt
(loari and tax certificates unmatured). These teiriporary increases
iri both gross debt arid floating debt will^ it is expected, be more
than overcome by December 31, 1920, in consequence of the December pperations, and both gross debt and floating debt should,
on December 31st, be reduced below the amounts/outstandirig on
September 30th. The Government's further progress in retiring
the .gross debt and the floating debt will depend, of course, u p o n t h e
relation between current receipts and current expenditures during
the coming calendar year, but there is good reason to hope t h a t unless new burdens are iniposed by legislation, there should be important further reductions in the last two quarters of the current fiscal
year, provided always t h a t tax receipts are maintained at a suffix
' cieritly high level, salvage operations vigorously pressed, and the
strictest economy practiced in Government expenditure.
The three months which have passed sirice the last quarterly tax
payment period have been inarked by a stil! further distribution of
Treasury certificates among investors and a further teduction-^ of
holdings of Treasury certificates by the bank
The repoTting merii^
ber banks pf t h e Federal ReservevSy.stem (about 823 meinber banks
in leading cities, which are believed to control about 40 per cent of
the comirierciahbahk deposits of the country and to have subscribed
in the first instance for perhaps 75, per cent of the Treasury certificates of indebtedness now outstandirig) held on November 26,
1920, only ; about $313,000,000 _of Treasury certificates^ as compared with reported holdings oh August'27, 1920, of about $430,- .
000,000, and on -NoYember 28, 1919, of about $816,000,000. On
December 3, 1920, the Federal Reserve Banks reported that there
were pledged with Federal Reserve Bariks only about $214,000,000
of Treasury certificates to secure loans and discounts, notwithstanding the preferential rates still maintained in many of the Federal
Reserve Districts and the probability t h a t borrowing banks would
use Treasury certificates as convenient collateral to secure loans
for commercial purposes.
'




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SECRETARY OF THE,TREASURY.

197

•The Treasury certificates of t h e two series now off ered are exempt,.
likeiOther Treasury; certificates outstanding, from all State arid local
, 'taxes (except estate arid inheritance taxes), and from the normal
Federal income tax and the corporation income tax, and are admissible assets for the purpose of calculating profits taxes.; The certificates how offered are also acceptable in payment of Federal incoirie and profits taxes payable at their respective maturities, and
the United States reserves n o o p t i o n to call them for redemption
before riiaturity. With these features, the attractive rates of iriterest, arid absolute security of principal and interest, these certificates are extremely desirable investments . and should prove,
particularly attractive to taxpayers having taxes to pay in the
calendar year 1921, as well as to persoris having idle funds awaiting
investment. In these circumstances, the Treasury believes t h a t banking institutions genera,lly should feel free to enter subsGriptions for the two issues now offered with the confident expectation
of prompt resale for investment, and urges them,. as iri the past, to
-.^ subscribe liberally for the certificates and devote their best efforts
to obtain the widest possible distribution among mvestors.
; ' ; Cordially yours,
- , :
••;•

. _ • ; '

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F . ^ ' H O U S T O N , ; . ' • . • • • ;

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Secretary. •

T O THE PRESIDENT OF THE BANK
OR T R U S T COMPANY ADDRESSED;
EXHIBIT

23.

L E T T E R OF S E C R E T A R Y OF T H E TREASTJRY TO T H E B A N K S A N D
"TRUST COMPANIES OF THE COUNTRY, ACCOMPANYING T H E
. ' O F F E R I N G OF T R E A S U R Y CERTIFICATES OF I N D E B T E D N E S S ' O F
SERIES TS2-1921 AND SERIES TM-1922, BOTH DATED MARCH 15,.
1 9 2 1 . .;, :• •••-•••"••
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.
; DEAR

SIR:

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At the outset of my adiriinistration of the Treasury I aria addressing this letter to the banking institutions of the country to inform
them of the state of the Nation's finances,, the probable requirements
of the Treasury for the coming months, and its financial plans for
the immediate future.
*
'
About $500,000,000 of Treasury certificates of indebtedness mature on March 15) 1921, and about $118,000,000 additional on April
15, 1921. On March 15, 1921, there will become payable the seini, annual interest on the Third Liberty ;Loari, amounting to about
$75,000,000. The Treasury must also make large payments under
the recent legislation authorizing partial payinents on account of the
railroad guaranty, which may amount to as much as $200,000)000
.during the course of the next inonth. I n order to meet these heavy
requirements and at the same time provide for the current expenses
of the Government, the Treasury relies in l a r g e p a r t upon the quarterly instalhrient of income and profits taxes due March 15, 1921.
Advance payments of March taxes have been up to expectations,
and though i t is impossible to forecast the results with certainty,'^
: the Treasury has good reason to hope that income and profits t a x
payments during March will about balance the March 15 maturities;




,198

-

R E P O R T ON T H E FINANCES.

of principal and interest. To provide fOr its further requiremerits,
the Treasury has decided, ori the basis of the best available estimates,
to offer Treasury certificates of indebtedness in the amourit of $400,000,000, or thereabouts, in two series, both dated March 15, 1921,
one series designated T S 2-1921, bearing 5-| per cent interest, maturing September 15, 1921, and the other series designated T M-1922,
bearing 5 | per cent interest and maturing March 15, 1922. Apphcations for Treasury certificates of these series will be received in regular course through the several Federal Reserve Banks, as fiscal
agents of the United States, from which full particulars concerning
the offering may be obtained. Treasury certificates of the series
which inature on March 15, 1921, and April 15, 1921, will be accepted
at par with an adjustment of accrued interest in payment for any
certificates of the two series now offered which may be subscribed
. for and allotted.
.
On t h e basis of the Treasury Daily Statements, the current operations of the Government during the first eight months of the fiscal
year through February 28, 1921, show a net current surplus (excess
of ordinary receipts over ordinary disbursements) amounting t o
' $186,115,505.53. This'showing is particularly encouraging in view of
; t h e fact that during these eight months, there have been extraordinarily heavy expenditures but only two quarterly payments of
income and profits taxes. Ordinary receipts up to February 28,
1921, have amounted to $3,433,411,141.36, as.against ordinary dis' bursements during the same period of $3,247,295,635.83 (or at the
rate of almost 5 billions a ,year). Of these disbursements about
$750,000,000 have represented expenditures of the War Department,
about $450,000,000 expenditures of the Navy Department, about
$475,000,000 payments to the railroads under the Transportation Act,
1920, and about $550,000,000 payments of interest on the public
, debt—a total of about $2,225,000,000 under these four main headings..
I n the four months which remain of the fiscal year there will be two
further quarterly payments of income and profits taxes, both based
on the busiriess of the calendar year 1920. While it is impossible to
estimate these tax payments with accuracy,: and the prospects are
t h a t expenditures will continue heavy for some time to come, the
Treasury expects that the operations of the first three quarters of the
year, through March 31', 1921, as well as the completed year's operations,, will show some surplus of receipts over expenditures.
The gross debt of the Government on February 28, 1921, amounted
to $24,051,684,728.28, on the basis of Treasury Daily Statements,
while on the same date the floating debt (loan and tax certificates
unmatured) amounted to $2,484,032,000. These figures contrast
with a gross debt on December 31, 1920, of $23,982,224,168.16, and
a floating debt on the sarrie date of $2,300,656,000. As a result of
the Treasury's operations on March 15, 1921, these increases in gross
debt and floating debt (which are to be expected in the odd months
when no quarterly income and profits tax payments are made) should
be largely offset and perhaps overcome. ^The progress to be made
during the balance of the current year in the retirement of gross debt
and floating debt will depend, of. course, upon the extent of the de- riaands made upon the Treasury and the volume of its receipts from
taxes and salvage. This progress is likely to be seriously limited by
reason of the heavy railroad payments to be expected during the next
t\yo or three months.
,



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SECRETARY OF THE TREASURY.

199

These figures as to the publie debt and the current operations of
the Treasury show t h a t the country's finances are sound, but t h a t
thelsitusd^iori oa^^
utinost economy. The Natiori can not
afford extrayagaince, and; so far^a possible it m u s t s avoid entering
( upoii new fields of expenditure. The heavy requirements of the
Governmerit on account of necessary experiditures, including iriterest
and sinking fund on the publie debt, and the maturity of 1 \ billions
of short-dated debt within the next two years or thereabouts make it
iihperatiye that the greatest care arid economy be exercised in matters
affectirig Government expenditure, The people gerierally must become more interested in saving the Government's money than in
spending it. A thoroiighgoing National budget system must be
established, arid the Government's expenses brought into relation to
its income^:
'
' The period which has elapsed since the last quarterly installment
of ihcoirie and profits taxes has been marked b y important developriients iri the market for Treasury certificates of indebtedness. On
January 15j 1921, the Treasury successfully sold an offering of threemonths ,5^ per cent certificates and nine-months 5f per cent certificates. On February 15, 1921, an offering of five-months 5^ per cent
certificates was likewise promptly oversubscribed. Treasury certificates of indebtedriess now enjoy a broad and active market, on a
straight investment basis, and all issues now outstanding are quoted
in the. open market either at par or at a premium. The last three
moriths have also been marked by still further distribution of Treasury,
certificates among investors and a reduction in holdings of Treasury
certificates by banks. The reporting member banks of the Federal
Reserve System (about 825 banks in leading cities, which are believed to control about 40 pet cent of the commercial bank resources
of the country and to have subscribed in the first instance for about
75 per cent of the Treasury certificates of indebtedness now outstandiug) held ori February 25, 1921, only about $235,000,000 of
Treasury certificates as compared with reported holdings on Novemb e r 26, 1920, of about $313,000,000, and on February 27, 1920, of
about $673,000,000. On March 4, 1921, the Federal Reserve Board
reported that there were pledged with the Federal Reserve Banks
only about $110,000,000 of Treasury certificates to secure loans and
discounts, orless than 5 per cent of the aggregate amount of loan and
tax certificates then outstanding. These figures strikingly show the
success of the efforts which have been made for the past year or
more to secure distribution of Treasury certificates among real investors, and to keep them out of the banks.
,
The two series of six months and twelve months certificates now
offered are both acceptable in payment of income and profits taxes,
and should prove peculiarly attractive to taxpayers as well as to
persons having idle funds awaiting investinent. 1 Imow t h a t I can
: count, like my predecessors in office, on your hearty cooperation in
the distribution and sale of Treasury certificates, arid hope that, as
iri the past, you will subscribe liberally in the first instance for the
certificates and use your best efforts to resell them to investors. .
Cordially yours,
-".'•'•
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A.

W.

MELLON,

'

Secretary ofthe Treasury.
To

THE PRESIDENT OF THE BANK
OR T R U S T COMPANY ADDRESSED.




200

REPORT ON THE FINANCES.
\

EXHIBIT

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^

24.

LETTER OF SECRETARY OF THE TREASURY TO THE BANKS AND
TRUST COMPANIES OF THE COUNTRY, ACCOMPANYING THE
. OFFERING OF TREASURY CERTIFICATES OF INDEBTEDNESS,
S E R I E S T J-1922, AND TREASURY NOTES, SERIES A-1924, BOTH
DATED JUNE 15, 1921.
DEAR SIR:

In accordance with the Treasury's practice to advise the banking
institutions of the country from time to time of its plans and policies,
I am addressing this letter to you in order to inf orm you of the state
of the National finances and indicate the Treasury's financial program for the immediate future. : The condition of the Treasury, its
estimates of receipts and experiditures for the fiscal years 1921 and
1922, and its recommendations as to the revision of the internal t a x
laws have recently been set forth at some length in my letter of
'April 30, 1921, to the Chairman of the Committee on Ways, and
Means, a copy of which has been sent you. ' In that letter I announced also that it would be the Treasury's policy to vary its monthly offerings of Treasury certificates of indebtedness from time to time with
issues of short-term notes in moderate amounts with maturities of
from three to five years, with a view to the gradual distribution of
the short-dated debt through successive issues of notes in convenient
maturities extending over the period from 1923 to 1928.
Pursuant to this program, the Treasury is announcing to-day a'
combined offering of three-year 5 | per cent Treasury riotes, dated
June 15, 1921, due June 15, 1924, and one-year 5^ per cent Treasury
certificates of indebtedness, dated June 15, 1921, due June 15, 1922.
The combined offering will be for $500,000,000, or thereabouts. The
Treasury notes thus offered will be straight three-year notes, designated Treasury Notes of Series A-1924, will not be subject to call
for redemption before maturity, and will be acceptable in payment
of iricome and profits taxes payable at or within six months before
maturity. The notes are exempt from the normal Federal income
tax and the corporation income tax and from all State and local
taxation (except estate and inheritarice taxes), but not from Federal
income surtaxes or profits taxes. The Treasury certificates will be
tax certificates, designated Series T J-1922, and will be acceptable
in payment of income and profits taxes payable at maturity. Definitive notes and certificates will, it is expected, be available for delivery
on or about June 15th, but wherever necessary Federal Reserve
Banks will be prepared t o issue interim receipts pending delivery of
the definitive securities.
Applications for the notes and certificates will be received in regular course through the several FederahReserve Banks, as fiscal agents
of the United States, from which full particulars concerning the offering may be obtained. Banking institutions which are duly qualified
as special depositaries of public moneys will be permitted to make
payment by credit upon the usual terms for notes and certificates
allotted to them for themselves and their customers. Treasury certificates of indebtedness of the series which'mature on June 15, 1921,
July 15, 1921, and August 16, 1921, willbe accepted at par with an
adjustment ot accrued interest in pajrment for any notes or certificates of the series now offered which may be subscribed for and
allotted.



\

SECRETARY OF THE TREASURY.

A

201

Treasury certificates of indebtedness: to the amount-of about
$430,000,000 mature On June 15) 1921, and on the same date th^re
will becorrie payable the semiannuaLinterest ori the First Liberty
Loan and the Victory Liberty Loan, amounting in the aggregate t o
about $130,000,000. On July 15, 1921, there will mature aBout
$132,000,000, and on August 16, 1921, about $156,000,000 of additional Treasury eertificates. Against; these heavy maturities of
principal and interest the Treasury expects to receive during June
about $57-5,000^000 on account of the quarterly payment of income
and profits taxes. To provide for its further requiremerits, including
current disbursements and increased payments incident to the close
of the fiscal.yeai*) the Treasury will need in the neighborhood of
$500,000)000, and; has therefore decided to make the combined
offering of riotes and certificates above described. •
' In-consequerice of t h e issue of Treasury notes: and Treasury cer-,
tificates'On June 15th, and the retirement of maturing Treasury
certificates, the Treasury expects to show important progress in the
execution of its plan to inake the short-dated debt more manageable
and gradually distribute i t over the period from 1923 to 1928. The
Victory Liherty Loan, which matures on May 20, 1923, amounted _
when originally issued to $4,495,374,300. Through the operation of!,
the bond purchase fund and the cumulative sinking fund, and the
miscellaneous retirements of the public debt, the amount of Victory
notes outstanding on May 31, 1921, had been reduced to $4,022,116,-\
555, according to the preliminary statement of the public debt for
that dale. This means a total reduction to date in the amount of the
Victory Loan of about half a billion dollars^ As similar retirements
of Victory notes are effected from time to time pursuant to the
Treasury's program, there should be important further reductions in
the Victory Loan maturity. The result of this and succeeding issues
of short-term notes, and of the debt retirements which the Treasury
expects to make frorii time to time out of its current surplus, should
be to spread the 7^ billions of short-dated debt, which is now .con- .
ceritrated in relatively few maturities, into a progressively smaller
aggregate amount of better diversified maturities extending over
the period from 1923 to 1928.
The current operations of the Government duririg the first eleven
months, of the fiscal year, through May 31, 1921^ show^ a net currerit
surplus (excess of ordinary receipts over ordinary "disbursements)
amounting to $228,602,077.55. During June there will be paid the
second quarterly installment of income and profits taxes for the^
calendar year. The result of the coinpleted fiscal year's Operations,,
according to the best information now available, should be a net
current surplus of about $500,000,00*0, substantially in accordance
with the estimates set forth in the letter of April 30th to the Chairinan
of the Committee on Ways and Mearis. This current surplus will
have been applied foi^ the most part to the retirement of the shortdated debt, chiefly through the operation of the cumulative sinking
fund, t h e current redemptions oi War-Savirigs securities, and the
wiseellaneous retirements of the public debt required to be made by
^alm.
The gross debt of the Government on May 31, 1921, on the basis of:
daily Treasury statements, amounted to $23,952,741,592.43, of which
about $7,558,447,589.40 represents short-dated debt. These figure's




202

'

REPORT ON THE FINANCES,

contrast with a g r o s s debt at the beginning of the fiscal year 1921 of
$24,29^,a21,467;07) of which $7,844,052,732.09 constituted shortdated debt: This ineans that in the first eleven months of the fiscal
year there has beeri a reduction in the gross debt of about $350,000^,^^^^
' of which substaritially the whole amount represents retirement of
short-dated debt. When the operations incident to the June 15th
offering of notes and certificates and the quarterly payment of incorne
and profits taxes on the same= date shall have been coinpleted, there
should be important further reductions in the gross debt and the
short-dated debt, as well as better distribution of the short-dated
debt.

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The progress of these operations and the development of the
Treasury's program for dealing with the short-dated debt should
mean improved market conditions for Government securities. Treasury certificates of indebtedness already enjoy a countrywide investririerit market, and the last three months have been marked by continued improvement in their distribution. The past three offerings
of Treasury certificates have been proriiptly oversubscribed. On
March 15, 1921, the Treasury; successfully sold an offering, of six
months 5J per cent certificates arid one year 5i per cent certificates.
On April 15, 1921,: an offering of six moriths 5J; per cent certificates
was quickly absorbed. On May 16, 1921) theTreasury sold an offering, of nine-months 5 | per cent certificates) with the largest oversubscription yet received. The market for outstanding Treasury
certificates;has continued strong and active, and all issues now outstanding are quoted i n t h e open market at a preiniuni. The wide
distribution bf the eertificates among investors is particularly noteworthy.. On May 25, 1921, according to the latest report from the
Federal Reserve Board, the reporting member banks of the Federal
Reserve System held only about $203,000,000 of Treasury certificates
as against $235,000,000 on February 25, 1921, and $609,000,000 on
May 28, 1920. On May 25, 1921, only about $55,000)000 of Treasury
certificates were pledged with the Federal Reserve Banks to secure
loaris and discounts/ Substantial progress has also been made in the
distribution of Victory notes among investors. According to the latest
figures, the reporting member banks of the Federal Reserve System
held on May 25, 1921, only $18:8,000,000 of Victory notes out of about
$4,000,000,000 outstanding.: The market position Of Victory notes
has correspondingly improved, and should show further improvement
as the maturity of the notes approaches arid is gradually distributed.
The fortunate position of the market for Treasury certificates is
due in no small measure to the constant cooperation which the
Treasury has had from the bariking institutions of the country in the
distribution of certificates among investors. Upon this first Offering
of short-term notes in pursuance of the Treasury's new program I
look forward with confidence to your continued cooperation and support, and hope.that) as with Treasury certificates, you will subscribe '
liberally for the new Treasury notes and devote your best efforts to
their resale to ultimate'investors.
Cordially yours,:
/
.
.^
,

A.-W.

MELLON,

..'•-

Secretary of the Treasury.
To THE

,

PRESIDENT OF THE

..•

BANK

:

OR T R U S T C O M P A N Y ADDRESSED,
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SECRETARY OF T H E T R E A S U R Y .
'•'::•• ••ExHiBiT\2&.''' :" .;

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203

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L E T T E R O F S E C R E T A R Y O F T H E T R E A S U R Y T O THE^^B
T R U S T COMPANIES O F T H E COUNTRY, ACCOMPANYING T H E
OFFERING OF TREASURY CERTIFIC ATE S OF INDEBTEDNESS,
S E R I E S TM3-1922 A N D TS-1922f A N D T R E A S U R Y
NOTES,
SERIES B-1924, ALL DATED SEPTEMBER 15, 1921.
D E A R ;

S I R : / ' ; ; '

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•-^'•••..

With the announcement of the second issue of short-term Treasury
notes pursuant to the prograin for handling the short-dated •deM outlined in my letter of April 30, 1921, to the chairman of the Committee
on Ways arid Means, r airi writing to inforrii yOu of the state of the
finances and the development of the Treasury's financial program.Treasury certificates of indebtedness to the amount of about
$535,000,000 will mature on September 15, 1921, and abOut $382,000,000 additional certificates will mature on Gctober 15,1921. On September 15, 1921, there will also become payable the seiniannual interest ori the Third Liberty Loari) which with other interest maturing
on that date will ainount toabout $100)000,000; while on October 15^
1921, there will become payable seiniannual iriterest on the PourtK
Liberty Loan: and other iriterest aggregating about $145,000,060.
These maturities of priricipal and interest amount to over $1,150,000,000. Against these payments the Treasury expects to receive duririg
September about $525,000,000 on account of the quarteily paymerit
of income and profits taxes, in addition to Ordinary revenues, frona,
other sources. The current .operations of the Goverriment for thp
first two months of the currerit fiscal year through August 31, 1921,
on the basis of the Trea'^ury daily statements, show a net currerit
deficit (excess of ordinary disbursements over ordinary receipts) of;
$161,464,774.96. With the payment of income and profits taxes in
September, however, there should be, according to the best information now available, a small net current surplus ior the quarter.
To provide for its further requireirierits, including current disbursements, and in furtherance of its announced plan for dealing with the
short-dated debt, the Treasury is announcing to-day an offering of
three-year 5J per cent Treasury notes dated September 15,1921, due
September 15, 1924, and of one-year 5i per cent Treasury certificates
of indebtedness dated Septeinber 15, 1921, due September 15, 1922,
and six months 5 per cent Treasury certificates dated September 15,
1921, due March 15, 1922. The combined offering is for $66o,000,000,
or thereabouts. The Treasury notes will be designated Treasury
notes of Series B-1924, and like those of Series A-1924, offered in!
June, will be straight three-year notes, will not be subject to call for
redemption before inaturity, and will be acceptable in payment of
income and profits taxes payable at or within six months before
maturity. The notes will be exempt from the normal Federal income
tax and the corporation income tax and from all State arid local taxation (except estate and inheritance taxes), but not from Federal income surtaxes or profits taxes. The Treasury certificates will be tax
certificates, designated Series TS-1922 arid Series TM3-1922, respectively, and will be acceptable in payment of income and profits taxes
payable at inaturity. Definitive notes: and certificates will, it is expected, be avaiUble for delivery on or about September 15th, but
wherever necessary Federal Reserve Banks will be prepared to issue
interim receipts pending delivery of the definitive securities.



204:

.

REPORT; ON THE FINANCES. ,^ ~

'Applications for the notes and; certificates will be received in
regular course through the several Federal Reserve Banks, as fiscal
agents of the United States, from which full particulars concerning
the offering may be obtained. Bankihg institutions which are duly
qualified as special depositaries of publie moneys will be permitted
to make payment by credit upon the usual terms for notes and
certificates allotted to them for themselves and their customers.
_ Treasury certificates of indebtedness of the series w h i c h ' m a t u r e "
, Septeinber 15) 1921, and October 15, 1921, will be aceepted at.par,
with an adjustmerit: of accrued interest, in payment for any notes
or certificates of the series now offered which may be subscribed for
and allotted/;
;
With t h e completion of t h e September i 5 t h operations, the Treasury
expects to show further substaritial progress in the executiori of its
plans for distributing the short-dated deb t o y e r the period from 1923
to 1928. ./This program was successfully launched with the first
offering ,of Treasury notes in June, and is more fully described in
m y letter of June 8th to the bankirig institutions of the country.
The notes then offered immediately proved attractive to investors,
and from the outset have enjoyed a broad and active market, which
has greatly facilitated their secondary distribution by .subscribing
bariks. According to the latest reports of the Federal Reserve Board,
only $52,019,0Q0:of thq $311,191,600 Of Treasury notes issued on
June 15th;were held by the reporting member banks of the Federal
Reserve system on August 24, 1921, and on August 31, 1921, only
$3,200,000 were pledged with the Federal Reserve Banks to secure
loans and discounts. The market for Treasury certificates has
likewise continued to develop. The latest reports from the Federal
Reserve Board show that on August 24, 1921, reporting member
banks held only $171,383,000 of Treasury certificates, as agairist
$203,000,000 on May 25, 1921, and $235,000,000 on February 25,1921, and t h a t on August 31, 1921, only $26,800,000 of the
$2,542,000,000 loan and tax certificates Outstanding were pledged
with Federal Reserve Banks to secure loans and discounts, as against
$53,400,000 on May 25, 1921.
. Important.progress has also been made in the distribution of the
Victory Liberty Loan maturity. The amount of Victory notes
outstanding has been reduced from $4,022,116,555 on May 31, 1921,
to $3,806,172,250 on August 31, 1921, on the basis of Treasury daily
statements. The. amount of Victory riotes Originally issued was
$4,495,374,300, so that this represents a total reduction of about^
$689,000,000..
These satisfactory results have been due in no small measure to
the effective cooperatiori of the bankirig institutions of the country
in the distribution of short-term Treasury securities among investors. '
I am confident that the Treasury can count On your continued copperatioii and/suppOrt in the furtherance of its plans for dealing
with the short-dated debt, and hope t h a t you will subscribe liberally
for the new issues and continue your successful efforts to distribute ;
them among inyestors.
Cordially yours,
^
;': - A.,;W. M E L L O N , - ' , »
"
''
Secretary of the Treasury. ,
T O THE P R E S I D E N T OF T H i ^ / B A N K
OR T R U S T C O M P A N Y ADDRESSED.




,

.

EXHIBIT

26."

STATEMENT OF THE PUBLIC DEBT OF THE UNITED STATES, JUNE 30, 1921.
AiTiOun t i s s u e d .
•

Amount outstanding.

A m o u n t retired.

INTEREST-BEARING DEBT.

Bonds:

• • • • ' • • .

•'

'

2 % consols of 1930....
. . . . . . - . : . . . . . . . . : . . J.:
4 % l o a n of 1 9 2 5 . . . . . . . . . . : . . . . . . . ; \ - . - : . . . . - . . ; ^ :
2 % P a n a m a s of 1 9 1 6 - 1 9 3 6 . . . . . . . . . . . . . . . . . . ' . . . . :
2 % P a n a m a s of 1 9 1 8 - 1 9 3 8 . . . . . . . . : . ; : . . . ' . . . : . ' . . :
. 3 % P a n a m a s of 1 9 6 1 . .
:..::.....:.
3 % c o n v e r s i o n b o n d s of 1 9 4 6 - 4 7 . . . . . . . : . . . 1
.
2h% p o s t a l savings b o n d s (1st t o 20th s e r i e s ) . . . .

.

$646,250,150.00
162,315,400.00
54,631,980.00
30,000,000.00
50,000,000.00
28,894,500.00
11,718,240.00

$599,724,050.00
118,489,900.00
48,954,180.00
25,947; 400. 00
50,000,000.00
28,894,500.00
11„718,240.00.

$46,526,100. 00
43,825,500. O
O
5,677,800.00
4,052,600.00

$883,728,270.00
First Liberty loan.
.
3 ^ % b o n d s of 1932-1947..
.......:
C o n v e r t e d 4 % b o n d s bf 1932-1947
C o n v e r t e d 4 i % b o n d s of 1932-1947
Second c o n v e r t e d 4 i % b o n d s of 1932-1947."..

.1,989,455,550.00

37,196,750.00
$1,410,074,250.00
17,982,800.00
'520,709,600.00 J
• 3,492,1501 00

d
1,952,258,800.00

Second L i b e r t y l o a n
:
4 % b o n d s of 1927-1942...... J . . . . . . .
C o n v e r t e d 4 i % b o n d s of 1927-1942..

3,807,865,000.00

^491,328,450.00.
77,870,150.00
3,238,666,400.00
3,316,536,550.00

T h i r d L i b e r t y loan—
4 i % b o n d s of 1 9 2 8 . . . . : . . ; . . . . . . : . . .
F o u r t h L i b e r t y loan—
4 i % b o n d s of 1 9 3 3 - 1 9 3 8 . . . . . . . . . . . . .

4,175,650,050.00

5'64,089,750.00

3,611,560,300.00

6,964,581,100.00

609,720,750.00

6,354,860,350.00

Treasury n o t e s ^
' Series A - 1 9 2 4 . . .

'.

4,495,374,300.00

581,593,950.00

w
>

15,235,216,000.00
Notes:
Victory Liberty l o a n . . . .
4 | % n o t e s of 1922-23.
3f% n o t e s of 1922-23.

•

•

V

\

.

'

•

w

3,272,852,350. 00
640,928,000.00
3,913,780,350.00'
311,191,600.00

311,191,600.00

311,191,600.00
Certificates of i n d e b t e d n e s s :
Series T S - 1 9 2 1 . . . . . . ' .
Series TD-1921
SeriesTS-2-1921
Series T M - 1 9 2 2 . . . . . .
Series T J - 1 9 2 2 . .




341,969,500.00
401,557,500.00
193,302,000.00
288,501,000.00
314,184,000.00

12,000,000.00

341,969,500.00
389,557,500.00
193,302,000.-00
288,501,000.00
314,184,000.00
1,527,514,000.00

•fcO
Or

Statement of• the public debt of the United States, June 30, 1921—Continued.
Amountissued.

fcO

o
Amount outstanding.

Amount retired.

INTEREST-BEARING DEBT—Continued.
Certificates of indebtedness—Continued.
LoanSeries C-1921..
.
•Series F-1921
Series G-1921
.'.
Series H-1921
Series A-1922
.........:......
Pittman Act.
Special
War savings securities: i
War savings certificates. Series 1918..
War savings certificates, Series 1919..
War savings certificates. Series 1920..
War savings certiflcates, Series 1921..
Thrift stamips, unclassified sales, etc.

$157,654,500.00
192,026,500.00
: 132,886,500.00
190,511,500.00
256,170,000. 00

$2,162,000.00

* "4* 656,'OOO." 65"

$155,492,500.00
192,026,500.00
128,886,500.00
190,511,500. 00
256,170,000. 00

259,375,000.00
32,854,450.00

43,500,000.00

$923,087,000.00
215,875,000.00
32,854,450.00

1,022,111,069.18
102,647,331.49
41,997,762.43
13,271,909.32
10,6473 753.00

441,935,485.16
40,156,390.11
13,071,965.37
1,406,461.41
113.00

580,175,584.02
62,490,941.38
28,925,797.06
11,865,447.91
10,647,640.00

$2,699,330,450.00

H
O
•M

694,105,410.37
Total interest-beariag debt outstanding..

>

Funded loan of 1891, continued at 2%, called for redemption May 18, 1900,
interest ceased Aug. 18,1900...."
:
Funded loan of 1891, matured Sept. 2,1891...
Loan of 1904, matured Feb. 2,1904........."
Funded loan of 1907, matured July 2,1907..'
:
Refunding certificates, matured July 1,1907......
Old debt matured at various dates prior to Jan. 1, 1891, and otheritems of
debt matured at various dates subsequent to Jan. 1,1861.
Certificates of indebtedness, at various interest rates, matured 1
Loan of 1908-1918...
......:............

o

1,000.00
19,800.00
13,050.00
380,800.00
10,350.00

Ul

893,960.26
9,244,000.00
376,660.00

Total matured debt outstanding on which interest has ceased..

10,939,620.26

DEBT BEARING NO INTEREST—PAYABLE ON PRESENTATION.




H

23,737,352,080.37

MATURED DEBT ON WHICH INTEREST HAS CEASED—PAYABLE ON
PRESENTATION.

Obligations required to be reissued when redeemed:
U n " ' ' States notes.,
Jnited " • •
Less gold reserve....

O

346,681,016.00
152,979,025.63

193,701,990.37

Obligations that wiU be retired on presentation:
Old demand notes
National bank notes and Federal reserve bank notes assumed by the
United States on deposit of lawful money for their retirement
Fractional currency
Total debt bearing no interest outstanding

;

....

Total gross debt 2
Matured interest obligations, etc.:
Matured interest obligations outstanding
Discount accrued (partly estimated) on war savings securities, Series of
1918 3
Discount accrued (partly estimated) on war savings securities, Series of
19193
Treasury warrants outstanding
Disbursing officers' checks outstanding

Balance held by the Treasurer of the United States as per daily Treasury
statement for June 30,1921
Deduct:
Net excess of disbursements over receipts in June reports subsequently
received
Net debt, including matured interest obligations, etc.^

53.012.50^
32,204,594.00
1,999,310.90
•

227,958,907.77
23,976,250,608.40

99,497,510.22
95,273,993.11
6,640,184.50
21,584,162. 21
147,199,302.25

Ul

370,195,152. 29
24,346,445,760.69

H

549,678,105.76
16,779,775.99

532,898,329.77

O

23,813,547,430.92

1 Amounts issued of the series of 1918 and 1919 are on basis of reports of sales; amounts issued of the series of 1920 and 1921 are on basis of cash receipts by Treasurer of the
United States, and include receipts from sales of thrift stamps and Treasury savings stamps.
2 The total gross debt June 30, 1921, on the basis of daily Treasury statements, was $23,977,450,552.54, and the net amount of public debt redemptions and receipts in transit,
etc., was $1,199,944.14.
3 Accrued discount calculated on basis of exact accrual at rate of 4 per cent per annum compounded quarterly, with due allowance for cash redemptions to date.
<NO deduction is made onaccount of obligations of foreign Governments or other investments. •
•
Issues of soldiers' and sailors' civil relief bonds not included in the above: Total issue to June 30,1921, was $195,500, of which $141,700 has been retired.




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Detail of outstanding interest-bearing issues; June 30, 1921.

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00

Authorizing act.

Title.
Prewar loans:
Consols of 1930Loan of 1925.
Panama Canal loan of 1936..
Panama Canal loan of 1938..
Panama Canal loan of 1961..
Conversion bonds..
Postal savings bonds (1st to 20th series).
War loans:
First Liberty loan—
3^% bonds of 1932-1947
Converted 4% bonds of 1932-1947....
Converted 4\% bonds of 1932-1947...
Second converted 4|% bonds of 19321947.
Second Liberty loan—
4% bonds of 1927-1942..:
Converted 4J% bonds of 1927-1942...
. Third Liberty loan—
41% bonds of 1928
Fourth Liberty loan—
41% bonds of 1933-1938
Victory Liberty loan—
4|% Victory notes of 1922-1923
3f % Victory notes of 1922-1923......
Treasury notes:
Series A-1924
Certificates of indebtedness:
Loan—
Series C-1921
Series F-1921
:
Series G-1921
Series H-1921
Series A-1922
Series TS-1921




."

Mar. 14, 1900
Jan. 14, 1875
June 28," 1902, and Dec. 21,
1905.
do
Aug. 5,1909, Feb. 4,1910, and
Mar. 2, 1911.
Dec.23, 1913
June 25, 1910...;

Rate of
interest.

Date of issue.

When redeemable or payable.

Payable after Apr. 1, 1930
Payable after Feb. 1,1925
/Redeemable after Aug. 1,1916
\Payable Aug. 1, 1936
/Redeemable after Nov. 1, 1918
\PayableNov. 1, 1938
Payable June 1, 1961

Interest payable.

Jan. 1, Apr. 1, July 1, Oct. 1.
Feb. ], May 1, Aug. 1, Nov. 1.
Do.

2%-4%..
2%..

Apr. 1, 1900.,
F e b . l , 1895.,
Aug. 1, 1906.

2%..
3%..

Nov. 1, 1908.
J u n e l , 1911.

3%..

Payable 30 years from date of issue..
Jan. 1,1916-1917....
/Redeemable 1 year from date of issue. Jan. 1, iipr. i, Juiy i, wc
J a n . l , J u l y l , 1911-1921 \Payable 20 years from issue
,. }jan. 1, July 1.
.

2^%-

Apr.24, 1917
3i%Apr. 24, 1917; Sept. 24, 1917., 4 % - .
Apr. 24, 1917; Sept. 24,1917, 4 i % .
as amended.
Apr. 24, 1917; Sept. 24, 1917. mo-

June 15, 1917.
Nov.15, 1917.
May 9, 1918...

Sept. 24, 1917
Sept. 24, 1917, as amended..
.do..

Nov. 15, 1917.
May 9, 1918...

4%..
4\%.
4\%.

^
Do.
Mar. 1, June 1, Sept. 1, Dec. 1.

! Redeemable on or after June 15,1932. jjune 15, Dec. 15.
[Payable June 15, 1947

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Oct. 24, 1918..

do

IRedeemable on or after Nov. 15,1927. JMay 15, Nov. 15.
(Payable Nov. 15, 1942
Mar. 15, Sept. 15.

Payable Sept. 15,1928

.do..

4i%-

Oct. 24,1918..

/Redeemable on or after Oct. 15,1933. JApr. 15, Oct. 15.
\Payable Oct. 15, 1938

.do.,
.do..

4f%.
31%-

May 20, 1919..
do

\Redeemable June 15 or Dec. 15,1922. }June 15, Dec. 15.
/Payable May 20, 1923

.do..

5f%.

June 15, 1921.

June 15,1924

.do.,
.do.,
.do.,
.do.,
.do..

6%-.

mc

Aug. 16, 1920-.
Jan. 15, 1921...
Feb. 15, 1921..
Apr. 15, 1921..
May 16, 1921...

Aug. 16,1921
Oct. 15, 1921-.:
July 15, 1921
Oct. 15, 1921
Feb.16, 1922

-do-.

6%.-

Sept. 15, 1920..

Sept. 15, 1921

5i%..
5\%.
5i%-

.

,

Dec. 15, June 15.
Feb. 16, Aug. 16.
At maturity.
Do.
Do.
Nov. 16, Feb. 16.

'.

:.-. Mar. 15, Sept. 15.

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.do.,
^%.do.,
•f%.do.,
.do..
Sept. 24, 1917, 'as amended
and Apr. 23, 1918.
Sept; 24,. 1917, as amended... Various.

Series TD-1921..
Series TS-2-1921Series TM-1922..
Series TJ-1922...
Pittman Act

o

Special issues.

CO

War savings securities

T.

.do..

Soldiers' and sailors' civil reUef bonds..

'
rf^

'4%

Mar. 8, 1918.

3^%

Dec. 15,1920...
Mar. 15, 1921...
....do
June 15, 1921...
Various dates.
1919.
Various dates..
Jan.2, 1918
Jan.2, 1919
Jan.2, 1920
Jan.2, 1921
July 1,1918

Dec. 15,1921
June 15, Dec. 15.
Sept. 15, 1921
At maturity.
Sept. 15, Mar. 15.
Mar. 15, 1922
Dec. 15, June 15.
June 15, 1922
One year from date of issue or renewa Jan. 1, July 1.
At maturity
At maturity.
Payable Jan. 1,1923
Payable Jan. 1,1924..;
Do.
Payable Jan. 1, 1925
Payable Jan. 1,1926
Mature July 1,1928; may be called 1 Jan. 1, July 1.
year after termination of war.

1 If held to maturity War savings securities yield interest at rate 4 per cent per annum compounded quarterly for the average period to maturity on the average issue price.
Thrift stamps and Treasury savings stamps do not bear interest,
"

'




"

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.

STATEMENT OF SECURITIES OWNED BY THE UNITED STATES GOVERNMENT, JUNE 30, 1921.

[Compiled from latest reports received by the Treasury.]
Obligations of foreign Governments, under authority of acts approved Apr. 24,1917, and Sept. 24,1917, as amended (on basis of cash advances, less repayments of
principal):
Belgium
,.
$347,691,566.23
Italy.
$1,648,034,050.90
Cuba
'.
8,575,000.00
Liberia
26,000.00
Rumania
23,205,819.52
. Czechoslovakia
.•
61,256,206.74
Russia
187,729,750.00
France
:
2,950,762,938.19
Serbia
:
:
26,175,139.22
Great Britain.:
4,166,318,358.44
Greece
.'
15,000,000.00
1,434,774,829.24
Total.
Foreign obligations received from the Secretary of War on account of sale of surplus war supphes:
$4,1.59,491.96
Lithuania.,
Belgium
$27,588, 581.14
57,369,610. 59
Czechoslovakia.
20,621,994.54
Poland
12,922,675.42
Esthonia
,
12,213,377.88
Rumania.;
406,082. 30
Russia
France...:
400,000,000.00
24,978,020.99
Serbs, Croats, and Slovenes.
Latvia
2, 521,869.32
562, 781,704.14
Total..
Foreign obligations received from the Secretary of the Navy on account of sale of surplus war supphes:
Poland
,...:
266,709.66
Foreign obligations received from the American Rehef Administration on account of rehef pursuant to act approved Feb. 25, 1919:
$2,610,417.82
Arra enia
$8,028,412.15
Latvia
822,136.07
Czechoslovakia
6,428,089.19
Lithuania.
51,671,749.36
Esthonia
:
1,785,767.72
Poland
4,465,465.07
Fmland
8,281,926.17
Russia
[, 093,963.55
Total..
Capital stock of War Emergency Corporations:
Capital stock of the Emergency Fleet Corporation.
), 000,000.00
Capitalstock of the Housing Corporation, issued..
$70,000,000.00
Less amount retired
3,500,000.00
Capital stock of the Sugar Equahzation Board.
Capital stock of the United States Grain Corporation, authorized and issued
Less amount retired

a..

$500,000,000.00
450,000,000.00

Capital stock of the War Finance Corporation, authorized and issned
Less cash deposited with the Treasurer United Slates to credit of War Finance Corporation
;
Obligations of carriers acquired under section 7 of the Federal control act, approved Mar. 21,1918, as amended: i
Boston & Maine Railroad
'
$26,695, O O 00 New York Central Railroad Co
O.
'
New York, New Haven & Hartford Railroad Co
Chicago, Terre Haute & Southeastern Railwav Co
50,250.00
Pennsylvania Railroad Co
The Erie Raihoad Co
'.
3,000,000.00
International Great Northern Railwaj^ Co., The Receiver
Pittsburgh & Lake Erie Railroad Co
Seaboard Air Line Railroad Co
. ofthe
.°.
;. • 1,400,000.00
Wa'shington, Brandywine & Point Lookout Railroad Co.
Locomotive Superheater Co
•
250,000.00
Minneapohs & St. Louis Railroad Co
:
750,000.00
Missouri, Kansas & Texas Railway of Texas, Receiver of
the
52,000:00
Total.
:
,

$500,000,000.00
402,949,623.43




i, 500,000.00
1,000,000.00

1,000,000.00

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', 050,376.57

$6,500,000.00
3,000,000.00
20, ood, 000.00
500,000.00
1,850,000.00
50,000.00

64,097,250.00

E q u i p m e n t t r u s t 6 p e r c e n t gold n o t e s , a c q u i r e d b y Director G e n e r a l of R a i l r o a d s p u r s u a n t t o F e d e r a l control act of M a r . 21,1918, as a m e n d e d , a n d act a p p r o v e d
N o v . 19, 1919, t o p r o v i d e for t h e r e i m b u r s e m e n t of t h e U i u t e d S t a t e s for m o t i v e power, cars, a n d other e q u i p m e n t ordered for carriers u n d e r F e d e r a l control: 2
A l a b a m a G r e a t S o u t h e r n R a i l r o a d Co
A n n Arbor Railroad Co.
•
A t c h i s o n , T o p e k a & S a n t a F e R a i l w a y Co
A t l a n t a , B i r m i n g h a m & A t l a n t i c R a i l w a y Co
A t l a n t i c Coast L i n e R a i l r o a d Co
A t l a n t i c Coast L i n e R a i l r o a d Co. a n d t h e Louisville &
NashviUe R a i l r o a d Co., j o i n t lessees of t h e Georgia R a i l r o a d Co
B a l t i m o r e & Ohio R a i l r o a d Co
Boston & Maine Railroad
Buffalo, R o c h e s t e r & P i t t s b u r g h R a i l w a y Co
C a r o l m a , Clmchfield & Ohio R a i l w a y
C e n t r a l R a i l r o a d Co. of N e w J e r s e y . . .•
C h a r l e s t o n & W e s t e r n Carolina R a i l w a y Co
C h e s a p e a k e & Ohio R a i l w a y Co
Chicago & A l t o n R a i l r o a d Co
:
Chicago, B u r h n g t o n & Q u i n c y R a i l r o a d Co
•
Chicago & E a s t e r n I l h n o i s R a i l r o a d Co
Chicago, I n d i a n a p o U s & LouisvUle R a U w a y Co
Chicago, G r e a t W e s t e r n R a i l r o a d Co
Chicago J u n c t i o n R a i l w a y Co
•.
Chicago, MUwaukee & S t . P a u l iRaUway Co
Chicago & N o r t h w e s t e r n R a U w a y C o . . . . : . .
Chicago, R o c k I s l a n d & Pacific R a U w a y Co
Chicago, S t . P a u l , M i n n e a p o h s & O m a h a R a U w a y Co
Chicago & W e s t e r n I n d i a n a R a i l r o a d Co
C i n c i n n a t i , N e w Orleans & T e x a s Pacific R a U w a y Co
Cleveland, C i n c i n n a t i , Chicago & S t . Louis R a U w a y C o . . .
Colorado & S o u t h e r n R a U w a y Co
•
D e l a w a r e & H u d s o n Co
D e t r o i t , T o l e d o & I r o n t o n R a U r o a d Co.
:
D e t r o i t & Toledo Shore L i n e RaUroad Co
E r i e R a U r o a d Co
F o r t W o r t h & D e n v e r C i t y R a U w a y Co
G r a n d T r u n k R a U w a v of C a n a d a
G r a n d T r u n k W e s t e r n R a U w a y Co
G r e a t N o r t h e r n R a U w a y Co.
H o c k i n g VaUey R a U w a y Co
lUinois C e n t r a l RaUroad Co
I n d i a n a H a r b o r B e l t R a i l r o a d Co
Total.

'...

$1.54,000
-733,600
6. 865,600
' 917,000
5,954,200
1,104,600
16,406,600
4,974,200
1,870,400
5,796,000
3,262,000
763,000
10,458,000
1,695,400
5,656,000
691,600
970,200
607,600
446,600
15,348,200
9,308,600
7,576,100
2,195,200
260,400
893,200
4,788,000
980,000
3,651,200
788,200
467,600
4,201,400
240,800
838,600
,2,825,200
4,008,200
2,646,000
8,509,200
550,200

^

,

K a n a w h a & Michigan R a i l w a y Co
K a n s a s City S o u t h e r n R a i l w a y Co
K a n s a s City T e r m i n a l R a i l w a y Co
L a k e E r i e & W e s t e r n R a i l r o a d Co
,
Louisville & N a s h v i l l e R a i l r o a d Co
Maine C e n t r a l R a i l r o a d Co
Michigan C e n t r a l R a i l r o a d Co
Miiyieapohs & S t . L o u i s R a i l r o a d Co
Missouri, K a n s a s & T e x a s R a i l w a y Co
Missouri Pacifie R a i l r o a d Co
Mobile & Ohio R a i l r o a d Co
Monongahela R a i l w a y Co
M o r g a n t o w n & K i n g w o o d R a i l r o a d Co
Nashville, C h a t t a n o o g a & St. L o u i s R a i l w a y Co
N e w Y o r k C e n t r a l R a i l r o a d Co
N e w Y o r k , N e w H a v e n & H a r t f o r d R a i l r o a d Co
Norfollc S o u t h e r n R a i l r o a d Co
Norfolk & W e s t e r n R a i l w a y Co
N o r t h w e s t e r n Pacific R a i l r o a d Co
P e n n s y l v a n i a R a i l r o a d Co
P e r e M a r q u e t t e R a i l w a y Co
:
P i t t s b u r g h & L a k e E r i e Railroad Co
Pittsburgh, McKeesport & Youghiogheny Railroad Co.
R i c h m o n d , F r e d e r i c k s b u r g & P o t o m a c R a i l r o a d Co
R u t l a n d R a i l r o a d Co
S e a b o a r d Air L i n e R a i l w a y Co
S o u t h e r n Pacific Co
S o u t h e r n R a i l w a y Co
S p o k a n e , P o r t l a n d & S e a t t l e R a i l w a y Co
St. Louis-San F r a n c i s c o R a i l w a y Co
T e r m i n a l Railroad Association of S t . L o u i s . . ;
T e x a s & Pacific R a i l w a y Co
Toledo & Ohio C e n t r a l R a i l w a y Co
Toledo, St. L o u i s & W e s t e r n R a i l r o a d Co
V i r g i n i a n R a i l w a y Co
W a b a s h Railroad'Co
W a s h i n g t o n S o u t h e r n R a i l w a y Co
W a s h i n g t o n T e r m i n a l Co
:
W e s t e r n M a r v l a n d R a i l w a y Co
W h e e l i n g & L a k e E r i e R a i l w a y Co

•.......:...

,

$954,800
890,400
175,000
597,800
9,770,600
1,122,800
4,776,800
1,388,800
1,177,400
9,549,400
567,000
460,600
2,427,600
1, 211,000
12,762,400
4,019,400
123,200
6,426,000
253,400
48, 544,000
9,426,200
543,200
2,613,800
918,400
345,800
1,540,000
2,626,400
9,606, 800
820,400
13,094,200
319,200
2,233,000
2,003,400
1,103,200
1,521,800
10,381,000
393,400
88,200
799,400
4,281,200

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$311,260,300.00

1 T h i s a m o u n t does n o t i n c l u d e securities p u r c h a s e d b y t h e Director G e n e r a l of R a i l r o a d s u h d e r t h e p r o \ a s i o n s of section 12 of t h e F e d e r a l control act, a p p r o v e d Mar. 21,1918.
2 I n each case t h e notes are i n series, all d a t e d J a n . 15, 1920, a n d d u e , respectively, o n t h e 15th d a y of J a n u a r y , 1922 to 1935, inclusive.




to

Obhgations of carriers acquired pursuant to section 207 ofthe traniportation act, approved Feb. 28, 1920, as amended:
Baltimore & Ohio RaUroad Co
".
$9,000,000.00
Gulf, MobUe & Northern RaUroad Co
Chicago,MUwaukee•& St. Paul RaUway Co
:
20,000,000.00
New York, New Haven & Hartford RaUroad Co.
Total
....;...:
..;
Obhgations of carriers acquired pursuant to section 210 of the transportation act, approved Feb. 28, 1920, as amended:
A l-'u^
r\„
. . . . ^ ^ P. Northern Raihoad i~\
a Corporation
»_
j..or\r\ n n n n n
$90,000.00 ' •" T7--,_ r. r M 4 - . . TV/T^.^i^.-. JP. r\..in....^-"D r.i
Kansas City, Mexico & Orient Railroad Co., receiver of the..
Alabama, rTennessee & XT iT_ ., u T » _ : i
1,394,000.00
Kansas City Terminal RaUway Co
Alabama & Vicksburg Railway Co
630,000.00
Long Island Railroad Co
Ann Arbor Raihoad Co
200,000.00
Louisville & JeffersonviUe Bridge Railroad Co
Atlanta, Birmingham & Atlantic RaUway Co
,
3,000,000.00
Maine Central Railroad Co
Baltimore & Ohio Raihoad Co
200,000.00
Minneapohs & St. Louis Raihoad Co
".
Bangor & Aroostook Raihoad Co
11,656,479.00
Missouri Pacific Railroad Co
Boston & Maine Raihoad
1,000,000.00
National RaUway Service Corporation
Buffalo, Rochester-& Pittsburgh Railway Co
3,000,000.00
New Orleans, Texas & Mexico RaUway Co
Carohna, Chnchfield & Ohio Railway
237,900.00
New York Central Railroad Co
Central of Georgia Railroad Co
300,000.00
New York, New Haven & Hartford Railroad Co
Central New England'Railway Co
:
3,759,000.00
Norfolk-Southern Raihoad Co
:
Chesapeake & Ohio Railway Co
2,445,373.00
Northern Pacific Railway Co
Chicago Great Western Railroad Co
200,000.00
Pennsylvania Railroad Co
Chicago, Indianapohs & Louisville Railway Co
35,340,000.00
Peoria & Pekin Union RaUway Co
•
Chicago, Milwaukee & St. Paul Railway Co
9,862,000. 00
Rutland Railroad Co
. Chicago, Rock Island &.Pacific Railway Co
7,911,000.00
Salt Lake & Utah Railroad Co..i
Chicago & Western Indiana Raihoad Co
375,000. 00 . Seaboard Air Line Railway Co
Cumberland & Manchester Railroad Co
9,840,700.00
Shearwood RaUway Co
Erie RaUroad Co
33,000.00
Tampa Northern Railroad Co
Fernwo6d, Columbia & Gulf Railroad Co
7,250.00
Terminal Raihoad Association of St. Louis
Flemingsburg & Northern Railroad Co
200,000.00
Toledo, St. Louis & Western Railroad Co., receiver of
Fort Dodge, Des Moines & Southern Railroad Co..
156,000. 00
Trans-Mississippi Terminal RaUroad Co
Fort Smith & Western Railroad Co., receiver of the
642, ooo;00
Virginia Blue Ridge Railway Co
Georgia & Florida Railway, receivers of
17,910,000. 00
Virginian Railway Co
Great Northern RaUway Co
515,000. 00
Virginia Southern Railroad Co
Gulf, Mobile & Northern Raihoad Co
1,053,000.00
Waterloo, Cedar Falls & Northern Railway Co
,
Hocking Valley Railway Co
4,440,000.00
Western Maryland Railway Co
Ilhnois Central Railroad Co
;
579,000.00
Wheehng & Lake Erie RaUway Co
,
Indiana Harbor Belt Railroad Co
^ 633,500.00
Wichita Northwestern Railway Co
,
Inter-Urban Railway Co
Wilmington, Brunswick & Southern Railroad Co
Total
Capital stock of Federal land banks, on basis of purchases, less repayments to date:
Springfield, Mass
$739,925.00
Baltimore, Md
741,485.00
Columbia, S.C
:
694,225. 00
LouisviUe, K y . ;
."!.....
598,495. 00
New .Orleans, La
622,175.00
• St. Louis, Mo
:.....
556,455. 00
Total

.•




—

:

to

$480,000.00
60,026,500.00

fcO

$89,506,500.00
$2,500,000.00
580,000.00
719,000.00
162,000. 00
1,973,000. 00
1,382,000.00
10,071,760.00
5,079,766.67
234,000. 00
26,775,000. 00
8,130,000. 00
111, 000. 00
6,000,000. 00
12,480,000.00
1,799,000. 00
61,000.00
300,000. 00
7,890,400.00
. 29,000.00
100,000. 00
896,925. 00
692,000. 00
1,000,000. 00
106,000. 00
2, 000,000.00
38,000. 00
1,260,000.00 ,
• 2,422,800. 00
2,700,000.00
381,750. 00
90,000. 00

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215,574,603. 67 .

St. Paul, Minn..
Omaha, Nebr...
Wichita, Kans..
Houston, Tex...
Berkeley, Cahf..
Spokane, Wash.

$359,240. 00
306,530.00.
574,485.00
429,495.00
708, 860.00
369,305.00
6 , 7 0 0 , 6 7 5 . OU

Federal farm loan bonds, acquired pursuant to act approved Jan-18,191S, as extended by joint resolution'approved May 26,1920:
• Federal farm loan 4h per cent bonds
Federal farm loan 5 per cent bonds'
Total
.'
•
Securities received by the Secretary of War on account of sales of surplus war supphes
Securities received by the Secretary of the Navy on account of sales of surplus property
Securities received by the United States Shipping Board on account of sales of ships, etc
Grand total.

.'

:

$136,885,000.00
46,150,000.00
$183,035,000.00
23,407,563.16
12,906,303.26
67,775,902.47

:

.'

, . . . . ! . 11,326,731,680.72

MEMORANDUM.

Amount due the United States from the Central Branch of the Union Pacific Railroad on account of bonds issued (Pacific Railroad aid bonds, acts approved July 1,
1862, July 2, 1864, and May 7, 1878):
•
•
Principal.
-.
:
Interest
1
:
Total

:

-.

!

$1,600,000.00
1,953,891.09
3,553,891.09

rr.
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.

.

^

^

NOTE.—This statement is made up on the basis of the face value of the securities therein described as received by the United States, with due regard for repayments. To the
extent that the securities are not held in the custody of the Treasury, the statement is made up from reports received from other Government departments and estabhshments. The
statement does not include securities which the United States holds as collateral, or as the result of the investment of trust funds (as, for example, securities held for account of the
Ahen Property Custodian, the United States Government Life Insurance Fund, and other similar trust funds).




'

,

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REPORT ON T H E FINANCES.

214

EXHIBIT
PRELIMINARY

27.

STATEMENT OF T H E P U B L I C D E B T OCTOBER 3 1 ,
1921.
[On the basis of daily Treasury statements.

Total gross debt September 30, 1921
Public-debt receipts October 1 to 31, 1921....
Public-debt disbursements October 1 to 31,
1921

$23, 924,108,125.06
$81,,434, 572. 00
546, 394, 200. 47
464, 959, 528. 47

Decrease for period.

Total gross debt October 31, 1921
23,459,148,496. 5.9
NOTE.—Total gross debt before deduction of the balance held by the Treasurer
free of current obligations,' and without any deduction on accouht of obligations of
foreign Governments or other investments, was as follows:
Bonds:
Consols of 1930
Loanofl925
Panama'sof 1916-19^6.
Panama'sof 1918-1938.
Panama's of 1961
Conversion b o n d s —
Postal sa^dngs bonds.
First Liberty loan
Second Liberty loan
Third Liberty loan
Fourth Liberty loan

- - $599, 724, 050. 00
--118,489,900.00
48, 954,180. 00
25, 947, 400. 00
50, boo, 000. 00
28, 894, 500. 00
11, 774, 020. 00
$883, 784, 050. 00
1,952,164, 800. 00
3,314,152, 200. 00
- - . - . - 3, 609, 247, 700. 00
6, 351, 586,400. 00

Total bonds
Notes:
Victory Liberty loan
Treasury notes—
Series A-1924
SeriesB-1924

15, 227,151,100. 00
16,110, 935,150. 00
3, 645, 286, 400. 00
311,191, 600. 00
390,706,100.00
701, 897, 700. 00

Treasury certificates:
Tax
Loan
Pittman Act

1,416, 576, 500. 00
515, 641,500. 00
146, 375, 000. 00
2, 078, 593, 000. 00
664, 666, 302. 00

War savings securities (net cash receipts)
Total interest-bearing debt
Debt on which interest has ceased
Noninterest-bearing. debt

23, 201, 378, 552. 00
17,460,140. 26
240, 309, 804. 33

Total gross debt

23, 459,148, 496. 59

E X H I B I T 28.
Q U A R T E R L Y C O M P A R A T I V E P U B L I C D E B T S T A T E M E N T , SHOWING
ALSO F I G U R E S F O R AUG. 3 1 , 1919, W H E N WAR D E B T WAS AT
ITS PEAK.
[On the basis of daily Treasury statements.]
A u g . 31, 1919.

*Gross debt ..
Net balance in general fund
Gross debt less net balance in general
fund
•Includes Treasury certificates (unmatured):
Loan and tax
Pittman Act and special
Total

i




Sept. 30,1920.

$26, 596,701,648.01
1,118,109, 534. 76

$24,087,356,128.65
434,961,050.10

$23,982,224,168.16
504,951,394.20

25, 478, 592,113.25

23,652,395,078. 55

23,477,272,773.96

3,938,225,000.00
262,914, 050. 39

2, 347, 791,000.00
292,229,450.00

2,300,656,000.00
292,229,450.00

4,201,139,050.39

2,640,020,450.00

2,592, 885,450.00

Dec. 31,1920.

215

SECRETARY OF THE TREASURY.

Quarterly comparative public debt statement, showing also figures for Aug. 31, 1919,
when war debt was at its peah—Continued.
Mar. 31,1921.

June 30,1921.

Sept. 30, 1921.

$23,980,104,397.83
614,593,426.78

$23,977,450,552.54
549,678,105.76

$23,924,108,125.06
757,675, 230.61

Gross debt less net balance in general.
fund

23,365, 510,971.05

. 23,427,772,446.78

23,166,432,894.45

•Includes Treasury certificates (unmatured):
Loan and tax
•.
'..
Pittman Act and special

2,474,612,000.00
280,229,450.00

2,450,843,500.00
248,729,450.00

2,307,437,500.00
172,375,000.00

2,754, 841, 450.00

2,699,572,950.00

2,479,812, 500.00

*Gross debt
Net balance in general fund...

Total

EXHIBIT

29.

S E C T I O N S 2 0 4 , 209^ A N D 2 1 0 O F T R A N S P O R T A T I O N A C T , 1 9 2 0 , A S
AMENDED.
REIMBURSEMENT OF DEFICITS DURING FEDERAL CONTROL.

S E C 204. (a) When used in this section—
The te:rm ^^carrier'^ means a carrier by railroad which, during
any part of the period of Federal control, engaged as a common
carrier in general transportation, and competed for traffic, or connected, with a railroad under Federal control, and which sustained
a deficit in its railway operating income for that portion (as a whole)
of the period of Federal control during which it operated its own
railroad or system of transportation; b u t does not include any street
or interurban electric railway which has as its principal source of
operating revenue urban, suburban, or interurban passenger traffic
or sale of power, heat, and light, or both; and
The term ''test period'^ means the three years ending June 30, 1917.
(b) For the purposes of this section—
Railway operating incbme or any deficit therein for the period of
Federal control shaU be computed in a manner similar to that provided in section 209 with respect to such income or deficit for the
guaranty period; and
Railway operating income or any deficit therein for the test period
shall be computed in the manner provided in section 1 of the Federal
Control Act.
.
(c) As soon as practicable after March 1, 1920, the Commission
shall ascertain for every carrier, for every month of the period of
Federal control during which its railroad or system of transportation
was not under Federal operation, its deficit in railway operating income, if any, and its railway operating income, if any (hereinafter
called ''Federal control r e t u r n ' ' ) r a n d the average of its deficit in
railway operating income, if any, and of its railway operating invjome, if any, for the three corresponding months of the test period
taken together, (hereinafter called " t e s t period return^')* Provided,
That " t e s t period return,'^ in.the case of a carrier which operated its
railroad or system of transportation for a t least one year during, b u t
not for the whole of, the test period, means its railway operating income, or the deficit therein, for the corresponding month during the
test period, or the average thereof for the corresponding months
^during the test period taken together, during which the ca:crier operated its railroad or system of transportation.



216

REPORT ON THE FINANCES.

(d) For every month of the period of Federal control during which
the railroad or system of transportation of the carrier was not under
Federal operation, the Commission shall then ascertain (1) the difference between its Federal control return, if a deficit, and its test
period return, if a smaller deficit, or (2) the difference between its
test period return, if an income, and its Federal control return, if a
smaller income, or (3)'the sum of its Federal control return, if a~
deficit, plus its test period return, if an income. The sum of such
amounts shall be credited to the carrier.
(e) For every such month the Commission shall then ascertain
(1) the difference between the carrier^s Federal control return, if ari
income, and its test period return, if a smaller income, or (2) the
difference between its test period return, if a deficit, and its Federal control return, if a smaller deficit, or (3) the sum of its Federal
con trol. re turn, if an income, plus its test period return, if a deficit.
The sum of such amounts shall be credited to the United States.
(f) If the sum of the amounts so credited to the carrier under
subciivision (d) exceeds the sum of the amounts so credited to the
TJnited States under subdivision (e), the difference shall be payable
to the carrier. In the case of a carrier which operated its railroad or
system of transportation for less than a year (luring, or for none of,
the test period, the foregoing computation shall not be used, but
there shall be payable to such carrier its deficit in railway operating
income for that portion (as a whole) of the period of Federal control
during which it operated its own railroad or system of transportation.
(g) The Commission shall promptly certify to the Secretary of the
Treasury the several amounts payable to carriers under paragraph
(f). The Secretary of the Treasury is hereby authorized and directed
thereupon to draw warrants in favor of each such carrier upon the
Treasury of the United States for the amount shown in such certificate as payable thereto. An amount sufficient to pay such warrants
is hereby appropriated out of any money in the Treasury ndt other,wise appropriated.
The Interstate Commerce Commission, in certifying to the Secretary of the Treasury the amount payable to any carrier under paragraphs (f) and (g) of section 204 of the Transportation Act, 1920,
also shall certify to the Secretary of the Treasury such sums^ if any,
as may be due from such carrier to the President (as operator of
transportation systems under Federal control) on account^ of traffic
balances or other indebtedness. The amount so certffied to be due
the President, upon his request, shall be deducted by the Secretary
of the Treasury from the amount so certified to be due such carrier
and thereupon shall be transferred from the appropriation made in
paragraph (g) of the said section 204 and cre(iited by him to the
appropriation made in section 202 of the Transportation Act, 1920.
Such deductions shall be considered as. a payment pro tanto of such
indebtedness to the Government.
GUARANTY TO CARRIERS A F T E R TERMINATION OF FEDERAL CONTROL.

S E C 209. (a) When used in this section—
The term " carrier'' means (1) a carrier by railroad or partly by
railroad and partly by water, whose railroad or system of transportation is under Federal control at the time Federal control terminates,
or which has heretofore engaged as a common carrier in general trans


SECRETARY OF THE TREASURY.

217

portation and competed for traffic, or connected, with a railroad at
any time under Federal control; and (2) a sleeping car company whose
system of transportation is under Federal control at the time Federal
control terminates; but does not include a street or interurban electric railway not under Federal control at the time Federal control
terminates, which has as its principal source of operating revenue
urban, suburban, or interurban passenger traffic or sale of power, heat,
and light, or both;
The term "guaranty period'^ means the six months beginning
March-1, 1920.
The term " t e s t period^^ means the three years ending June 30,
1917; and
The term "railway operating income" and other references to
accounts of carriers by railroad shall, in the case of. a. sleeping car
company, be construed as indicating the appropriate corresponding
accounts in the accounting system prescribed by the Commission.^
(b) This section shall not be applicable to any carrier which does
not on or before March 15, 1920, file with the Commission a written .
statement that it accepts all the provisions of this section.
(c) The United States hereby guarantees—
(1) With respect to any carrier with which a contract (exclusive^
of so-called cooperative contracts or waivers) has been made fixing
the amount of just compensation under the Federal Control Act,
that the railway operating income of such carrier for the guaranty
period as a whole shallnot be less than one-half the amount named'
in such contract as annual compensation, or, where the contract
fixed a lump sum as compensation for the whole period of Federal
operation, that the railway operating income of such carrier for the
guaranty period as a whole shall not be less than an amount which
shall bear the same proportion to the lump suiri so fixed as six months
bears £o the number of months during which such carrier was under
Federal operation, including in both cases the increases in such compensation provided for in section 4 of the Federal Control Act;
(2) With respect to any.carrier entitled to just compensation under
the Federal Control Act, with which such a contract has not been
made, that the railway operating income of such carrier for the
guaranty period as a whole shall not be less than one-half of the annual
amount estimated by the President as just compensation for such
carrier under the Federal Control Act, including the increases in such
compensation provided for in section 4 of the Federal Control Act.
If any such carrier does not accept the President's estimate respecting
its just compensation, and if in proceedings under section 3 of the
Federal Control Act it is determined that a larger or smaller annual
amount is due as just compensation, the guaranty under this paragraph shall be increased or decreased accordingly;
(3) With respect to any carrier, whether or not entitled to just
compensation under the Federal Control Act, with which such a contract has not been made, and for which no estimate of just compensation is made by the President, and which for the test period as a whole
sustained a deficit in railway operating income, the guaranty shall be
a sum equal to (a) the amount by which any deficit in its railway operating income for the guaranty period as a whole exceeds one-half of
its average annual deficit in railway operating income for the test




218

REPORT ON T H E FINANCES.

period, plus (b) an amount equal to one-half the annual sum fixed by
the President under section 4 of the Federal Control Act;
(4) With respect to any carrier not entitled to just compensation
under the Federal Control Act, which for the test period as a whole
had an average annual railway operating income, that the railway
operating income of such carrier for the guaranty period as a whole
shall not be less than one-half the average annual railway pperating
income of such carrier during the test period.
(d) If for the guaranty period as a whole the railway operating
income of any carrier entitled to a guaranty under paragraph (1),
(2), or (4) of subdivision (c) is in excess of the minimum railway
operating income guaranteeci in such paragraph, such carrier shall
forthwith pay the amount of such excess into the Treasury of the
United States. If for the guaranty period as a whole the railway
operating income of any carrier entitled to a guaranty under paragraph (3) of subdivision (c) is in excess of one-half of the annual sum
fixed by the President with respect to such carrier under section 4
of the Federal Control Act, such carrier shall forthwith pay the
amount of such excess into the Treasury of the United States. The
amounts so paid into the Treasury of the United States shall be added
to the funds made available under, section 202 for the purposes indicated in such section. Notwithstanding the provisions of this subdivision, any carrier may retain out of any such excess any amount
necessary to enable it to pay its fixed charges accruing during the
guaranty period.
(e) For the purposes of this section railway operating income, or
any deficit therein, for the test period shall be computed in the manner
provided for in section 1 of the Federal Control Act.
(f) In computing railway operating income, or any deficit therein,
for the guaranty period for the purposes of this section—
(1) Debits and credits arising from the accounts, calle'd°in the
monthly reports to the Commission equipment rents arid joint facility
rents, shall be included, but debits and credits arising from the
operation of such street electric passenger railways, including railways comnionly called interurbans, as are not under Federal control
at the time of termination thereof, shall be excluded;
(2) Proper adjustments shall be made (a) in case any lines which
were, during any portion of the period of Federal control, a part of the
railroad or system of transportation of the carrier, and whose railway
operating income was included in such income of the carrier for the
test period, do not continue to be a part of such railroad or system of
transportation during the entire guaranty period, and (b) in case of
any lines acquired by, leased to, or consolidated with, the railroad or
system of transportation of the carrier at any time since the end of
the test period and prior to the expiration of the guaranty period, for
ivhich separate operating returns to the Commission are not made in
respect to the entire portion of the guaranty period;
(3) There shall not be included in operating expenses, for maintenance of way and structures, or for maintenance of equipment,
more than an amount fixed by the Commission. In fixing such
amount the Commission shall so far as practicable apply the rule set
forth in the proviso in paragraph (a) of section 5 of the "standard
contract" between the United States and the carriers (whether or




SECRETARY OF THE TREASURY!

219

not such contract has been entered into with the carrier whose railway operating income is being computed);
(4) There shall not be included any taxes paid under Title I or I I
of.the Revenue Act of 1917, or such portion of the taxes paid under
Title I I or I I I of the Revenue Act of 1918 as by the terms of such'
Act are to be treated as levied by an Act in amendment of Title I or
I I of the Revenue Act of 1917; and
(5) The Commission shall require the elimination and restatement
of the operating expenses and revenues (other than for maintenance
of way and structures, or maintenance of equipment) for the guaranty period, to the extent necessary to correct and exclude any disproportionate or unreasonable charge to such expenses or revenues
tor such period, or any charge to such experises or revenues for such
period which under a proper system of accounting is attributable to
another period.
(g)' The commission shall, as soon as practicable after the expiration of the guaranty period, ascertain and certify to the Secretary oi.
the Treasury the several amounts necessary to make good the foregoing guaranty to each carrier. The Secretary of the Treasury is
hereby authorized and directed thereupon to draw warrants in favor
of each such carrier upon the Treasury of the United. States, for the
amount shown in such certificate as necessary to make good such
guaranty. An amount sufficient to pay such warrants :is hereby
appropriated out of any money in the Treasury not otherwise
appropriated.
(h) Upon application of any carrier to the Commission, asking that
during the guaranty period there may be advanced to it from time
to time such sums, not in excess of the estimated amount necessary
to make good the guaranty, as are necessary to enable it to m e e t l t s
fixed charges and operating expenses, the Commission may certify
to the Secretary of the Treasury the amount of, and times at which,
such advances, if any, shall be made. The Secretary of the Treasury,
on receipt of such certificate, is authorized and directed to make the
advances in the amounts and at the times specified in the certificate,
upon the execution by the carrier of a contract, secured in such manner
as the Secretary may determine, that upon final determination of the
amount of the guaranty provided for by this section such carrier will
repay to the United States any amounts which it has received from
such advances in excess of the guaranty, with interest at the rate
of 6 per centum per annum from the time such excess was paid.
There is hereby appropriated, out of any money in the Treasury not
otherwise appropriated, a sum sufficient to enable the Secretary of
the Treasury to make the advances referred to in this subdivision.
' (i) If the American Railway Express Company shall, on or before
March 15, 1920, file with the Commission a written statement t h a t
it accepts all the provisions of this subdivision, the contract of
June 26, 1918, between such company and the Director General of
Railroads, as amended and "continued by agreement dated November 21, 1918, shall remain in full force and effect duririg the guaranty
period in so far as the same constitutes a guaranty on the part of
the United States to such company against a deficit in operating
income.
In computing operating incoriie, and any deficit therein, for the
guaranty period for the purposes of this subdivision; the Commission



220

REPORT ON T H E FINANCES.

shall require the elimination and restatement of the operating experises and revenues for the guaranty period, to the extent necessary
to correct anci exclude any disproportionate or unreasonable charge
to such expenses or revenues for such period, or any charge to such
expenses or revenues for such period which under a proper system
of accounting is attributable to another period, and to exclude from
operating expenses so much of the charge for payment for express
privileges to carriers on whose lines the express traffic is carried as
is in excess of 50.25 per centum of gross express revenue.
For the guaranty period the American Railway Express Company
shall pay to every carrier which accepts the provisions of this section,
as provided in subdivision (b) hereof, 50:25 per centum of the gross
revenue earned on the transportation of all its express traffic on the
carrier's lines, and every such carrier shall accept from the American
Railway Express Company such percentage of the gross revenue as its .
compensation. In arriving at the gross revenue on through or joint
express, traffic, the method uf dividing the revenue between the
carriers shall be that agreed upon between the carriers and such
express company and approved by the Commission.
If for the guaranty period as a whole the American Railway Express Company does not .have a deficit in operating income, it shall
lorthwith pay the amount of its operating income for such period
into the Treasury of the United States. The amount so paici shall
be added to the funds made available under section 202 for the
purposes indicated in such section.
The Commission shall, as soon as practicable after the expiration
of the guaranty period, certify to the Secretary of the Treasury the
amount necessary to make good the foregoing guaranty to the
American Railway Express Company. The Secretary of the Treasury
is hereb}^ authorized and directed thereupon to draw warrants in
favor of such company upon the Treasury of the United States for
the amount shown in such certificate as necessary to make good
such guaranty.. An amount sufficient to pay such warrants is
hereby. appropriated out of any money in the Treasury not otherwise appropriated.
Upon application of the American Railway Express Company to
the Commission, asking that during the guaranty period there may
be advanced to it from time to time such sums, not in excess of the
estimated amount necessary to make good the guaranty, as are
necessary to enable it to meet its operating expenses, the Commission may certify to the Secretary of the Treasury the amount of,
and times at which, such advances, if any, shall be made. The
Secretary of the Treasury, on receipt of such certificate, is authorized
and directed to make the advances in the amounts and at the times
specified in the certificate, upon the execution by such company of a
contract, secured in such manner as the Secretary may determine,
that upon final determination of the amount of the guaranty provided
for by this subdivision such company will repay to the United States
any amounts which it has received from such advances in excess of
the guaranty, with interest at the rate of 6 per centum per annum
from the time such excess was paid. There is hereby appropriated
out of any money in the Treasury not otherwise appropriated a sum
sufficient to enable the Secretary of the Treasury to make the advances referred to in this subdivision.



SECRETARY OF T H E TREASURY.

221

N E W LOANS TO RAILROADS.

S E C 210. (a) For the purpose of enabling carriers by Tailroad
subject to the Interstate Coinmerce Act properly to serve the public
during the transition period immecliately following the termination
of Federal control, any such carrier may, at any time after the passage
of this Act, and -before the expiration of two years after the termination of Federal control make application to the Commission for a
loari from the United States to meet its maturing indebtedness, or
to provide itself with equipment or other additions and betterments,
setting forth the amount of the loan; the term for which, it is desired.;
the purpose of the loan and the use to which it will be applied;
the present and prospective ability of the applicant to repay the
loan and meet the requirements of its obligations in that regard;
the character and value of the security offered; and the extent to
which the public convenierice and necessity will be served. The
application shall be accompanied by statements showing such facts
in detail as the Commission may require with respect to the physical
situation, ownership, capitalization, indebtedness, contract obligations, operation, and earning power of the applicant, together with
such other facts relating to the propriety and expediency of granting
the loan applied for, and the ability of the applicant to make good
the obligation as the Commission may deem pertinent to the i:aquiry.
(b) If the Coinmission, after such hearing and investigatio:ii, with
or without notice, as it may direct, finds that the making, in whole
or in part, of the proposed loan by the United States, for one or
more of the aforesaid purposes, is necessary to enable the applicant
properly to meet the transportation needs of the public, and that
the prospective earning power of the applicant and the character
and value of the security offered are such as to furnish reasonable
assurance of the applicant's ability to repay the Iqan within the time
fixed therefor, and to meet its other obligations in connection with
such loan the Commission shall certify to the Secretary of the Treasury
its findings of such facts; also the amourit of the loan which is to be
made; the time, not excleeding fifteen years from the making thereof,
within which it is to be repaid; the terms and conditions of the loan,
including the security to be given for repayment; that the prospective
earning power of the applicant, together with the character and
value of the security offered, furnish, in the opinion of the Commission,
reasonable assurance of the .applicant's ability to repay the loan
within the time fixed therefor and reasonable protection to .the
Uriited States; and that the applicant, in the opinion of the Commission, is unable to provide itself with the funds necessary for the
aforesaid purposes from other sources.
,
(c) Upon receipt of such certificate from the Commission the Secretary of the Treasury shall immediately, or as soon as practicable,
make a loan of the amount recommended in such certificate out of
any funds in the revolving fund provided for in this section and,
accept the security prescribed therefor by the Commission. All
such loans shall bear interest at the rate of 6 per centum per annum,
payable se:cniannually, to the Secretary of the Treasury, and to be .
placed to the credit of said revolving fund. The form of obligation
to be entered into shall be prescribed by the Secretary of the Treasury,
but the time, not exceeding fifteen years from the making thereof.




222

REPORT-ON T H E FINANCES.

within which such loan is to be repaid, the security which is to be
taken therefor, and the terms and the conditions bf the loan shall
be in accordance with the findings and the certificate of the Commission.
(d) The Commission or the Secretary of .the Treasury may call
upon the Federal Reserve Board for advice and assistance with
respect to any such application or loan.
(e) There is hereby appropriated out of any moneys in the Treasury
not otherwise appropriated the sum of $300,000,000, which shall be
used as a revolving fund for the purpose of making the loans provided
for in this section, and for paying trie judgments, decrees, and awards
referred to in subdivision (e) of section 206.
(f) A carrier may issue evidences of indebtedness to the United
States pursuant to this section without the authorization or approval
of any authority. State or Federal, and without compliance with any
requirement. State or Federal, as to notification.
The loans for equipment authorized by section 210, Transportation
Act, 1920, may be made to or through such organization, car trust
or other agency as may be determined upon or approved or organized
for the purpose by the Commission as most appropriate in the public
interest for the construction, and sale or lease of equipment to carriers,
upon such general terms as to security and payment or lease as provided in this section or in subsections 11 and 13 of sectiori 422 of the
Transportation Act, 1920.
E X H I B I T 30.
S T A T E M E N T SHOWING AMOUNTS OF P A R T I A L P A Y M E N T S A N D
FINAL PAYMENTS, RESPECTIVELY, LESS DEDUCTIONS THEREF R O M F O R I N D E B T E D N E S S TO T H E P R E S I D E N T , TO N O V . 1 5 , 1 9 2 1 ,
I N C L U S I V E , M A D E TO C A R R I E R S I N R E S P E C T TO T H E R E I M B U R S E M E N T OF D E F I C I T S P R O V I D E D I N SECTION 2 0 4 OF T H E
T R A N S P O R T A T I O N ACT, 1 9 2 0 , A S A M E N D E D .

Carrier.

Partial
payments.

Final payment;^.

Deductions.!

Total
certified.

Alabama & Mississippi Railroad Co., receiver
$60,295. 21 $60,.295. 21 $60,295.21
3,000. 00
$3,000.00
Alabama Northern Railway Co... -.
:
^
30,000.00
30,000.00
Angelina & Neches River Railroad Co
6,563.39
50,000.00
50,000.00
Apalachicola Northern Railroad Co
-.
103,452.76
Atlanta & St. Andrews Bay Railway Co
103,452.76
17,546.73
17,546.73
Bartlett Western Railway
'3,'ii7."89'
500.00
500.00
Bonlee & Western Railway Co
3,000.00
§, 000. 00
Bristol Railroad C o —
2,000.00
2,000. 00
Brownstone & Middletown Railroad Co
;...
30,000.00
30,000.00
Bullfrog Goldfield Railroad Co
50,000.00
50,000.00
Butler CJounty Railroad Co
,
5,485.71
• 38,157.71
Cairo Truman & Southern Railroad Co
38,157. 71
10,932.42
16,500.00
16,500.00
Carolina & Yadkin River Railway Co
2,931.66
9,000.00
9,000. 00
Cliicago, Palatine & Wauconda Railroad Co
127,313.36 100,000.00 127,313.36
Dayton., Toledo & Chicago Railway Co., receiver
40,221.64
> 40, 221.64
Deering Southwestern Railway
708.25
47,579.30
871. 05
Electric Short Line Railway Co
46,708. 25
3,308.96
11,410.94
11,410:94
Ettrick and Northern Railroad Co
513. 34
8,166.45
8,166.45
Fort Smith, Subiaco & Rock Island Railroad Co
73,332.16
73,332.16 10,565. 89
Fourche River Valley & Indian Territory Railway Co.
17,262.19
21,751.06
21,751.06
Franklin & Pittsylvania Railroad Co
5,600.00
5,600.00
5,600.00
Frankfort & Cincinnati Railway Co
600.34
7,100.34
7,100.34
Gainesville & Northwestern Railroad Co
3, 513. 52
40,000.00
40,000.00
Georgia Coast & Piedmont Railroad Co
25,000.00
25, 000.00
Georgia, Florida & Alabama Railway Co
370,000. 00 72,507.96 356,360.45 442,507.96
Gulf, Florida & Alabama Railway Co., receiver
60,000.00
7, 050. .95
60,000.00
Jefferson & Northwestern Railway Co
100, 000.00
100,000.00
Kansas, Oklahoma & Gulf Railway Co
1 Amount due from the carrier to the President (as operator ofthe transportation systems under Federal
control) on account of traffic balances and other indebtedness.




223

SECRETARY OF T H E TREASURY.
Statement showing amount of partial payments, etc.—Continued.
Carrier.

Partial
payments.

$64,000.
K e n t w o o d & E a s t e r n R a i l w a y Co
K n o x v i l l e , Sevierville & E a s t e r n R a i l w a y Co., receiver! 31,000.
2,500.
L i b e r t y W h i t e R a i l r o a d Co
L i b e r t y W h i t e R a i l r o a d Co., receiver
L i t t l e C o t t o n w o o d T r a n s p o r t a t i o n Co
5,187.
L o r a i n & S o u t h e r n R a i l r o a d Co
5,700.
L o r a m a R a i l r o a d Co
,..
50,000.
L u f k i n , Hem.phill & Gulf R a i l w a y Co
t.
L o u i s i a n a R a i l w a y a n d N a v i g a t i o n Co
300,000.
M a r r i e t t a &. V i n c e n t R a i l r o a d Co
98,769.67
Midland Railway
" M i d d l e T e n n e s s e e Railroad Co
50,000.
M i n e r a l P o i n t & N o r t h e r n R a i l w a y Co
25,000.
M o h a s s u c k V a l l e y R a i l r o a d Co
M o n s o n R a i l r o a d Co
23, 501.
M o n t a n a W e s t e r n R a i l w a y Co
16, 000.
Mount Jewett, Kinzua & Riterville Railroad Co...
45,189.
Nevada-California-Oregon R a i l w a y
60,699.
N e w Mexico C e n t r a l R a i l w a y Co
'64,000.
N e w Y o r k Dock R a i l w a y . .•
:
T h e N e z p e r c e & I d a h o R a i l r o a d Co.
26, 279.
Ocilla S o u t h e r n R a i l r o a d Co
' 80,000.
P a r i s & M t . P l e a s a n t i t a i l r o a d Co., receiver
15, 000.
P e n n Y a n & L a k e Shore R a i l w a y Co., receiver
11,000.
P i c k e n s R a i l r o a d Co
P i t t s b u r g , S h a w m u t & N o r t h e r n R a i l r o a d Co., receiver| 200,000.
23,214.
R a n d o l p h & C u m b e r l a n d R a i l r o a d Co
9, 540.
S h e a r w o o d R a i l w a y Co
S o u t h M a n c h e s t e r R a i l r o a d Co
T e n n e s s e e , A l a b a m a & Georgia R a i l r o a d Co., receiver!
16,000.
Texas State Railroad
20, 000.
U r s i n a & N o r t h F o r k R a i l w a y Co
W e s t e r n A l l e g h e n y R a i l r o a d Co
W h i t e S u l p h u r & H u n t e r s v i l l e R a i l r o a d Co
14, 000. 00
33,364.
W i s c o n s i n & Michigan R a i l r o a d Co
Total

•....:

D eductions .1

Final payments.

Total ,
certified.

$64,000.00
31,000.00
10.999.20
7,618.95
39,073.32
6,922.70
5,187.38
602.93
5,700.00
22, 460.0.9
50,000. 00
65,490.86
300,000.00
. 20,188.84
20,188.84
35, 852.46
98,769.67
"41'892." 92"
2,578.83
41,892.92
50,000.00
8,153.97
25, 000.00
11,623.92
11,623.92
2,940.90
23,501. 20
10,131. 05
16,000.00
10,550.95
45.189.21
11,824. 52
194,678.59
433,979.07
28,466.31
64,000.00
. 21,109; 43
"2i,"i69."43'
26,279.10
17,456.. 28
80,000.00
80,000. 00
15,000.00
2,198.16
11,000.00
6,679.01
200,000.00
23,214.06
10,714.06
11,298.61
1,258.02
1, 758. 28
16,353. 02
16,353.02
59,950.17
59,950.17 ""4,'367.'is'
16,000.00
4,450. 00
20,000.00
114,941.96
527. 05
114,941. 96
14, 000. 00
6,121. 88
33,364. 56
5,694. 43
$11,749.8

S8,499.20
7,618.95
39,073.32

2,177,651.41 1,012,718.32' '952,001.66 3,190,369.73

1 A m o u n t duef r o m t h e carrier t o t h e P r e s i d e n t ^as operator of t h e t r a n s p o r t a t i o n s y s t e m s u n d e r F e d e r a l
control) on a c c o u n t of traffic b a l a n c e s a n d other i n d e b t e d n e s s .
,

EXHIBIT

31.

S T A T E M E N T SHOWING AMOUNTS OF A D V A N C E S , P A R T I A L P A Y M E N T S , A N D F I N A L P A Y M E N T S , R E S P E C T I V E L Y , TO NOV. 1 5 ,
1 9 2 1 , I N C L U S I V E , M A D E TO C A R R I E R S I N R E S P E C T TO T H E
G U A R A N T Y P R O V I D E D I N SECTION 2 0 9 OF T H E T R A N S P O R T A TION ACT, 1920, A S A M E N D E D .
Carrier.

Advances.

A d i r o n d a c k & St. L a w r e n c e R a i l r o a d Co
$4,929.00
Alabama Central Railway.
Alabama, Tennessee & Northern Railroad
Corporation
A m e r i c a n R a i l w a y E x p r e s s Co
19,700,000.00
A n n A r b o r R a i l r o a d Co
240,000.00
Apalachicola N o r t h e r n R a i l r o a d Co
A r i z o n a a n d N e w Mexico R a i l w a y Co
Aransas Harbor Terminal Railway.
'..
12,000.00
Arizona E a s t e r n R a i l r o a d Co
A t c h i s o n , T o p e k a & S a n t a F e R a i l w a y Co
A t l a n t a , B i r m i n g h a m & A t l a n t i c R a i l w a y Co.,
receiver
........::
1,114,000.00
A t l a n t a & S t . A n d r e w s B a y R a i l w a y Cd
,
70,000.00
A t l a n t i c Coast L i n e R a i l r o a d Co
2,500,000.00
A t l a n t i c Coast L i n e R a i l r o a d Co. a n d Louisville
& N a s h v i l l e R a i l r o a d Co., j o i n t lessees of-^the
Georgia R a i l r o a d
A t l a n t i c & W e s t e r n R a i l r o a d Co
15,000.00
B a l t i m o r e , Chesapeake & A t l a n t i c R a i l w a y C o . .
159,300.00
T h e B a l t i m o r e & Ohio R a i l r o a d Co
14,000,000.00
T h e B a l t i m o r e & Ohio Chicago T e r m i n a l R . R .
Co.
B a n g o r & Aroostook R a i l r o a d Co..
284,000.00




Partial
payments.

Final
payments.

$4,929.00
3,000.08

$3,000.00
62,500.00
8,375,000.00
$75,261. 85
6,000.00
150,000.00
390,000.00
5,425,000.00
90,000.00
2,400,000.00

Total.

62,500.00
28,075,000.00
315,261.85
6,000.00
150,000.00
12,000.00
390,000.00
5,425,000.00
1,204,000.00
70,000.00
4,900,000.00

6,400,000.00

414,000.00
15,000.00
159,300.00
20,400,000.00

735,000.00
60,000.00

.735,000.00
344,000.00

414,000.00

<
'

224

REPORT ON THE FINANCES.
Statement showing amounts of advances, etc.—Continued,
Carrier.

Bartlett Western Railway
Bath & Hammondsport Railroad Co
Bennettsville & Cheraw Railroad Co
Big Fork & International Falls Railway Co...
Birmingham & Northwestern Railway Co
Birmingham and Southeastern Railway Co.,
receivers
:
Boston & Maine Railroad
Boyne City, Gaylord & Alpena Railroad Co
Brooklyn liiastern District Terminal
The Brownwood North & South Railway Co
Bufi;alo, Rochester & Pittsburgh Railway-Co....
Buffalo & Susquehanna Railroad Corporation..,
Bullfrog Goldfield Railroad Co
,
Carolina & Northeastern Railway Co.
Carolina & Northwestern Railway Co
Carrollton &. Worthville Railroad.Co. .
=
Central of Georgia Railway Co
•.
Central Indiana Rail way.Co
Central New England Railwaj'- Co
Central Railroad Co. of New Jersey
Central New York Southern Railroad Corporation
Central Vermont Railwaly Co
Charleston Terminal Railway Co
1
Charleston & Western Carohna Railway Co
Chesapeake & Ohio Railway Co
Chesapeake Western Railway
The Chicago & Alton Railroad Co
Chicago, Burlington & Ciuincy Railroad Co
Chicago &EasternIllinois Railroad Co., receiver.
Chicago & Erie Railroad Co
Chicago, Great Western Railroad Co
Chicago, Indianapohs & Louisville Railway Co..
Chicago Junction Railway Co
Chicago, Milwaukee & Gary Railway Co
Chicago, Milwaukee & S't.Paul Railway C o . . .
CJhicago & North Western Railway Co
Cihicago, Peoria & St. Louis Railroad Co., receivers .'.
'.
.Chicago River & Indiana Raikoad Co
Chicago, Rock Island & Pacific Railway Co
*
.
Chicago, St. Paul, Minneapolis & Omaha Railway Co
,
Chicago, Terre Haute & Southeastern Railway
Co
Chicago Tunnel Co
Chicago, West Pullman & Southern Railroad Co.
Cincinnati, Indianapolis & Western Railroad Co.
The'Cincmnati, Lebanon & Northern Railway
Co
The Cleveland, Cincinnati & St. Louis Railway
Co.
Colorado & Southern Railway Co
Cooperstown & Charlotte Valley Railroad......
Copper Range Railroad Co
Cumberland & Manchester Railroad Co
Cumberland & Pennsylvania Railroad Co
Deering Southwestern Railway
Delaware & Hudson Co
Delaware, Lackawanna & Western Railroad Co
Delaware & Northern Railroad Co
The Denison & Pacific Suburban Railway Co..
The Denver & Rio Grande Railroad C;o., receiver
".
Denver & Salt Lake Railroad Co., receivers...
Detroit, Bay City & Western Railroad Co
Detroit, Grand Haven & Milwaukee Railway Co
The Detroit & H uron Railway
Detroit & Mackinac Railway Co
. Detroit Terminal Railroad Co
Detroit, Toledo & Ironton Railroad Co
Duluth, South Shore & Atlantic Railway C o . . .
Electric Short Line Railway Co
Electric Short Line Terminal Co
Erie Railroad Co
Fernwood Columbia & Gulf Railroad
Flint River & Northeastern Railroad Co
Fort Dodge, Des Moines & Southern Railroad
Co
The Fort Worth Belt Railway Co
•y
Fort Worth & Rio Grande Railway Co..




Advances.

Partial .
payments.
$7,500. 00
9,000.00
10,000.00
25,000.00

$33,000.00
12,000. 00
6;500,000.00
12,500.00

Final
payments.

Total.
S7,500.00
9,000.00
10,000.00
25,000.00
33,000.00-

6,000,000.00

- 12, 000.00
10,500, 000.00
42, 500..00 •
220, 000.00
500.00
5, 500.00
1,532, 000.00
100, 500.00
7,,000.00
10 500. 00
59; 000.00
11; 000.00
3,625, 000.00
670.00
so; 411.00
1,532,
5,146, 000.00
33, 000.00
1,425; 000.00
50, 000.00
480, 000.00
3,300, 000.00
10, 000.00
1,720, 000.00
7,650, 000.00
1,500, 500.00
1,621, 000.00
3,185, 000.00
1,275, 000.00
1,250, 697. 00
. 91, 892.05
22,434, 000.00
12,800,
408,000.00
75,000.00
6,000,000.00

900,000.00

1,192,000.00

2,092,000.00

150,000.00

49,000.00
14,500.00
22,000.00
230,000.00
150,000.00

"49,000.00
14,500.00
22,000.00
380,000.00

470,000.00
340,000.00
15,000.00
150,000.00

470,000.00
340,000.00
15,000.00
150,000.00
8,000.00
60,000.00
4,000.00
2,702,500.00
7,124,500.00
31,500.00
17,700.00

4,000,^0.00
30,000.00
220,000.00

1,300,000.00
7,'SOO." 66

11,000.00
3,150,000.00
1,532,670.00
5,146,411.00
1,325,000.00
220,000.00
2,700,000.00
10,000.00
,700,000.00
1,500,000.00
1,285,000.00
1,700,000.00
500,000.00
1,000,000.00
91,697.00
14, 297,702.00
238,000.00
75,000.00

8,000.00
2,195,000.00
5,124,500.00.
31,500.00

5,500.00
232,500.00
100,000.00
10,000.00
59,500.00
475,000.00
80,000.00

33,000.00
100,000.00
50,000.00
260,000.00
600,000.00
1,020,000.00
7,650,000.00
336,500.00
1,485,000.00
775,000.00
250,000.00
8,137,190.05
12,800,000.00
170,000.00

60,000.00
4,000.00
507,500.00
2,000,000.00
17,700.00

425,000.00
90,000.00

100,000. 00
281, 500.00
45,000. 00
13,765,000. 00
35,000.00
137,500.00

150,000.00

937,500.00
425,000.00
94,500.00
580,000.00
7,500.00
55,000.00
100,000.00
.225,000.00
225,000.00
281,500.00
59,993.67
$14,993.67
3,158. 56
3,158. 56
14,765,000.00
1,000,000.00
59,000.00
24,000.00
4,000.00
4,000. 00
937,500.00

4,500.00
580,000.00
7,500.00
55,000.00

12,500.00
210,000.00

137,500.00
12,500.00
210,000.00

225

SECRETARY OF T H E TREASURY.
Statement showing amounts of advances, etc.—Continued.
Carrier.
Fourche River Valley & Indian Territory Railway Co
Frankfort & Cincinnati Railway Co
,
Franklin & Pittsylvania Railroad Co
."
Gainesville Midland Railway
,
Gainesville & Northwestern Railroad Co
The Galveston, Harrisburg & San Antonio
Railway Co
:
Galveston Wharf Co
Georgia & Florida Railway, receivers.
Georgia, Florida & Alabama Railway Co
Georgia Northern Railway Co
Georgia Southern & Florida Railway Co
Grand Canyon Railway Co
Grand Rapids & Indiana Railway Co
. The Grand Trunk Railway Co. of Canada,
lessee ofthe Atlantic & St. Lawrence Railroad
Co,
The Grand Trunk Railway Co. of Canada,
lessee ofthe Chicago, Detroit & Canada Grand
Trunk Junction Railroad Co
The Grand Trunk Railway Co. of Canada,
lessee of the Cincinnati, Saginaw & Mackinaw
Railroad Co
.The Grand Trunk Railway Co. df Canada,
lessee ofthe Lewiston & Auburn Railroad Co..
The Grand Trunk Railway Co. of Canada,
lessee of the Michigan Air Line Railway
Grand Trunk Western Railway Co
Great Northern Railway Co
• Greenwich & Johnsonville Railway Co
Gulf, Colorado & Santa Fe Railway Co
Gulf, Florida & Alabama Railway Co., receiver
Gulf, Mobile & NorthQrn Railroad Co
Gulf, & Ship Island Railroad Co
Gulf, Texas Si Western Railway Co
Hawkinsville & Florida Southern Railway Co.,
receiver
Houston & Brazos Valley Railway Co., receiver
The Houston, East & West Texas Railway Co..
Houston & Texas Central Railroad Co
Huntingdon & Broad Top Mountain Railroad
& Coal Co
Illinois Central Railroad Co
Illinois Northern Railway
Indiana Harbor Belt Railroad Go
International & Great Northern Railway Co.,
receiver
Jefferson & Northwestern Railway
The Kanawha & Michigan Railway Co
Kansas City, Clinton & Springfield Railway Co
Kansas, Oklahoma & Gulf Railway Co
Kansas City, Mexico & Orient Railway Co. of
Texas
j
Kansas City, Mexico & Orient Railroad Co., receiver
Kansas City Southern Railway Co
Kinston Carolina Railroad Co
'
Lake Charles & Northern Railroad Co
The Lake Erie & Western Railroad Co
The Leavenworth Terminal Railway & Bridge
Co
Lehigh & Hudson River Railway Co
Lehigh Valley Railroad Co
:
Live Oak, Perry & Gulf Railroad Co
The Long Island Railroad Co
Louisville Bridge & Terminal Railway Co
Louisville, Henderson & St. Louis Railway Co..
Louisville & Nashville Railroad Co
Louisyille & Wadley Railroad Co
Macon, Dublin & Savannah Railroad Co
Maine Central Railroad Co
Manistique & Lake Superior Railroad Co
Marion & Rye Valley Railway Co
Maryland, Delaware & Virginia Railway Co...
Maryland & Pennsylvania Railroad Co
Maxton, Alma & Southbound Railroad Co
Memphis, Dallas & Gulf Railroad Co., receiver.
Meridian & Memphis Railway Co
Michigan Central Railroad Co
Middletown & Unionville Railroad Co

70073—FI 1921- -15




Partial
pajrments.

Advances.

Final
payments.

Total.

$12,500.00
3,000.00
25,000.00
7,000.00

22,000. 00

30,000.00
1,000,000.00
6,000,000.00
6,000.00
1,575,000.00
12,000.00
200,000.00
2O,00O.QO
20,000.00
10,000.00
15,500:00
145,000.00

65,000.00
37,000.00

• 90,000.00

22,000.00

235,000.00
528,000.00
245,000.00
95,000.00

,55,090.00

90,000.00

6,500,000.00

425,000.00

55,000.00

445,000.00
120,000.00

150,000.00"
139,000.00
460,000.00
160,000.00
5,500.00
130,000.00
9,500.00
780,000.00

425,000.00

11,000.00
11,300.00
8,400.00

$16,500.00
12,500.00
14,000.00
' 36,300.00
15,400.00

150,000.00
139,000. 00
15,000.00
40,000.00
5,500.00
130,000.00
9,500.00
780,000.00

$16,500.00

30,000.00
1,000,000.00
12,5t)0,000.00
6,000.00
1,575,000.00
247,000.00
728,000.00
265,000.00
115,000.00

900,000.00

75,000.00 .
52,500.00
145,000.00
900,000.00

82,715.00
8,000,000.00

122,285.00
4,376,000.00
35,000.00
900,000.00

205,000.00
12,376,000.00
35,000.00
900,000.00

1,815,000.00
30,000.00

260,000.00

2,075,000.00
30,000.00
103,000.00
55,000.00
262,000.00

103,000.00
55,000.00
120,000.00

142,000.00

470,000.00

470,000.00
446,000.00
600,000.00

1,500.00
21,000.00
360,000.00
18,000.00
200,000.00

7,000,000.00

.
2,000,000.00

50,000.00
2,300,000.00
5,250.00
85,000.00
3,000.00
90,000.00
20,000.00

22,000.00
450,000.00
150,000.00
175,000.00
4,750,000.00
6,500.00
300,000.00
33,000.00
8,800.00
75,000.00
6,000.00
9,000.00

910,000.00
3,500.00

446,000.00
600,000.00
1,500.0021,000.00
360,000.00

is; 000.00
200,000.00
7,000, 000.00
22; 000.00
'450,000.00
150, 000.00
175, 000.00
6,750,000.00
6,500. op
50, 000.00
2,600,000.00
33,000.00
050.00
, 14,
85, 000.00
75, 000.00
3,000.00
000.00
. 96,
29,000.00
910,000.00
3 500.00

226

REPORT ON THE FINANCES..
J:^tatement showing amounts of advances, etc.—Continued. ,^
Cariiier.

Advances.

Partial
payments.^

Final
payments.

$30,000.00
Midland Railway
$63,000.00
Midland Valley Railroad Co
6,500.00
Mineral Point & Northern Railroad Co
70,000.00
Mineral Range Railroad Co
17,000.00
Minneapelis Eastern Railway Co
490,000.00
'2," iso," 666.'66
Minneapolis & St. Louis Railroad Go
Minneapolis, St. Paul & Sault Ste. Marie Rail1,400,000.00
3,135,000.00
way Co
150,000.00
Minnesota & International Railway Co
8,500.00
Mississippi Eastern Railway Co
245,000.00
Mississippi Central Railroad Co
700,000.00
Missouri, Kansas & Texas .Railway Co., receiver.
Missouri,Kansas & Texas Railway Co. of Texas,
2,870,000.00
receiver
49,500.00
300,000.00
Missouri & North Arkansas Railroad, receiver..
3,100,000.00
9,483,000.00
Missouri Pacific Railroad Co
375,000.00
950,000.00
Mobile & Ohio Railroad Co
3,000.00
Monson Railroad Co
3,000.00
Montana Western Railway Co
64,500.00
Montpelier & Wells River Railroad
Morgan's Louisiana & Texas Railroad & Steam85,000.00
. ship Co
4,000.00
Mount Hope Mineral Railroad Co
9,000.00
Mount Jewett, Eanzua & Riterville Railroad Co..
46,000.00
Muscatine, Bmiington & Southern Railroad Co.
The Nashville, Chattanooga & St. Louis Rail1,200,000.00
way
150,.000.00
30,000.00
Nevada Copper Belt Railroad Co
New Orleans Great Northern Railroad Co
235,500.00
New Orleans, Texas & Mexico Railway Co.
500,000.00
20,000.000.00
New York Central Railroad Co..:
- 50,0,00.00
New York Dock Railway
New York, New Haven & Hartford Railroad Co. 11,817,200.00
600,000.00
New York, Ontario & Western Railway Co
15,000.00
New York & Pennsylvania Railway Co
New Y.ork, Philadelphia & Norfolk Railroad Co.
300,000.00
256,000.00
New York, Susquehanna & Western Railroad
205,000.00
Co
• 550,000.00
6,000.00
Nezperce & Idaho Railroad Co
30,000.00
Norfolk & Portsmouth Belt :Line Railroad Co..
Norfolk Southern Railroad Co
700,000.00
$611,700.63
2,000,000.00
Norfolk & Western Railway Co
6,000,000.00
80,000.00
Northern Alabama Railway Co
:
7,000,000.00
5,000,000.00
Northern Pacific Railway Co
\
8,000.00
15,000.00
Ocilla Southern Railroad Co^receivers
,..
The Ohio River & Western Railway Co
70,000.00
Oregon Electric Railway Co
:
,
180,000.00
40,000.00
Oregon Trunk Railway
:...
30,000.00
Pacific Coast Railroad Co
•.•
550,000.00
Panhandle & Santa Fe Railway Co.:
:
Paris & Great Northern Railroad Co
27,500.00
20,000.00
Paris & Mt. Pleasant Railroad Co., receiver
50,000.00
2,000.00
Penn Yan & Lake Shore Railway, receiver
53," 666," 666.'66'
The Pennsylvania Railroad Co
87,000.00
Peoria Railway Terminal Co
Peoria & Pekin Union Railway Co
.245,500.00
55,000.00
Philadelphia & Reading Railway Co
, 5,500,000.00
2,350,000.00
The Pittsburgh, Cincinnati, Chicago & St.
4,000,000.00
Louis Railroad Co...., 6,100,000.00
The Pittsburgh & Lake Erie Railroad Co
,
3,000,000.00
Pittsburgh & West Virginia Railway Co
, """i75,'666.'66'
The Pontiac, Oxford & Northern Railroad Co..,
110,000.00
Quanah, Acme & Pacific Railway C o . . . . . . . . . . .
55,000.00
65,000.00
Railway Transfer Co. ofthe City of Minneapolis.
Randolph & Cumberland -Railway Co
15,000.00
• Rapid City, Black Hills & Western Railroad Co,
15,000.00
Raritan River Railroad Co.
,
80,000.00
40,000.00
Rio Grande, El Paso & Santa Fe Railroad Co..
Rio Grande Southern Railroad Co
,
115,000.00
Rockingham Railroad Co
,
8,000.00
225,000.00
Rutland Railroad Co
.....',
375,000.00
San Antonio & Aransas Pass Railway Co
,
475,000.00
San Antonio, Uvalde & Gulf Railroad Co., receiver
:
05,000.00
45,000.00
Sandy River & Rangeley Lakes Railroad
10,000.00
Savannah & Statesboro JRailway Co
,
4,000. do
Seaboard Air Line Railway Co
, 6,525,000.00
Shearwood Railway Co
2,500.00
2.000.00
Southern Pacific Co
.•
4,200,000.00
200,000.00
Spokane, Portland & Seattle Railway Co
"..
250,000.00




Total.
$30,000.00
63,000.00
6,500.00
70,000.00
17,000.00
2,640,000.00
4,535,000.00
150,000.00 .
8,500.00
245,000.00
700,000.00
2,870,000.00
349,500.00
12,583,.000.00
1,325,000.00
3,000.00
3,000.00
64,500.00
85,000.00
4,000.00
9,000.00
46,000.00
1,350,000.00
30,000.00
235,500.00
500,000.00
20,000,000.00
50,000.00
11,817,200.00
600,000.00
15,000.00
556,000.00
755, 000.00
6,000.00
30, 000.00
1,311,700.63
8,000,000.00
80, 000.00
12,000,000.00
23, 000.00
70, 000.00
180,000.00
40, 000.00
30, 000.00
550,000.00
27, 500.00
70, 000.00
2, 000.00
53,000,000.00
87, 000.00
300, 500.00
7,850,000.00
10,100,000.00
3,000,000.00
175,000.00
110,000.00
55,000.00
65,000.00
15,000.00
15,000.00
80,000.00
40,000.00
115,000.00
8,000.00
600,000.00
475,000. 00

iio,ooo..do
10,000.00
4,000.00
6,525,000.00
4,500.00
4,200,000.00
- 450,000.00

227

SECRETARY OF THE TREASURY.
Statement showing amount of advances, etc.—Continued.
Carrier.

Advances.

T h e St. J o h n s b u r y & L a k e C h a m p l a i n R a i l road Co
•
St. Joseph B e l t R a i l w a y Co
St. Joseph & G r a n d I s l a n d R a i l w a y C o . . ,
St. Louis-San Francisco R a i l w a y CJo
St. Louis-San Francisco & T e x a s R a i l w a y C o . . .
St. P a u l Bridge & T e r m i n a l R a i l w a y Co
|
T h e Sullivan C o u n t y R a i l r o a d
S u s q u e h a n n a & N e w Y o r k R a i l r o a d Co
S y l v a n i a Central R a i l w a y Co
Termessee Central R a i l r o a d Co
T e r m i n a l R a i l r o a d Association of St. Louis
Texas Midland Railroad
T e x a s & Pacific R a i l w a y , receivers
T e x a s S h o r t L i n e R a i l w a y Co
T o n o p a h & Goldfield R a i l r o a d Co
T h e Toledo & Ohio R a i l w a y Co
:....
T o l e d o , Peoria & W e s t e r n R a i l w a y Co., receiver.
T o l e d o , Saginaw & Muskegon R a i l w a y C o . . . . .
Trans-Mississippi T e r m i n a l R a i l r o a d Co
T r i n i t y & Brazos Valley R a i l w a y Co., r e c e i v e r . .
T r i n i t y Valley S o u t h e r n R a i l r o a d Co
T h e U l s t e r & Delaware R a i l r o a d Co
U n i o n Stock Y a r d s Co. of O m a h a ( L t d . )
V e r m o n t Valley R a i l r o a d
V i r g i n i a S o u t h e r n R a i l r o a d Co
W a b a s h R a i l w a y Co
W a d l e y S o u t h e r n R a i l w a y Co
W a t e r l o o , Cedar Falls & N o r t h e r n R a i l w a y Co.
W a u p a c a - G r e e n B a y R a i l w a y , receiver....""
W e s t e r n Allegheny R a i l r o a d Co
W e s t e r n M a r y l a n d R a i l w a y Co
T h e W h e e l i n g & L a k e E r i e R a i l w a y Co
W i c h i t a N o r t h w e s t e r n R a i l w a y Co
W i c h i t a Falls & N o r t h w e s t e r n R a i l w a y Co.,receiver
W i c h i t a Valley R a i l w a y Co
•.
Wilkes B a r r e & E a s t e r n - R a i l r o a d ( ) o . . . :
W i n s t o n - S a l e m S o u t h b o u n d R a i l w a y Co
Wisconsin & N o r t h e r n R a i l r o a d Co
T h e Wrightsville & T e n n i l l e R a i l r o a d Co
Y o r k H a r b o r & Beach R a i l r o a d Co
Total.

$220,000.00
3,000,000.00

1,140,000.00

280,000.00

Partial
payments.

Final
payments.

$70,000.00
62,500.00
195,000.00
1,530,000.00
200,000.00
74,500.00
17,000.00
50,000.00
10,000.00
195,000.00
275,000.00
100,000.00
1,245,000.00
6,000.00
80,000.00
105,000.00
175,000.00
75,000.00
165,000.00
35,000.00
1,500.00
244,800.00

$70,000.00
62,500.00
415,000.00
,530,000. 00
200,000.00 .
74,500.00
17,000.00
sO,000.00

10,000.00
195,000.00
,415,000.00
100,000.00
,245,000.00
6,000.00
80,000.00
105,000.00
175,000.00.
75,000.00
165,000. OO
315,000.00
1,500.00"
244,800.00
65,000.00
45,000.00
6,500.00
',577,000.00
50,000.00
85,000.00
4,000.00
45,000. OO
,400,000.00'
955,000.00
35,000. OO

65,000.00
4,500.00
5,077,000.00
85,000.00
1,000,000.00
500,000.00
35,000.00

45,000.00
2, 000.00
1,500,000.00
50,000.00
4,000.00
45,000.00
400,000.00
455,000.00

287,800.00
145,000.00
140,000.00
110,000.00
27,500. OO
75,000.00
15,000.00

287,800.00
145,000.00
140,000.00
100,000.00

Total.

10,000.00
27,500.00
75,000.00
15,000.00

263,935,874.00 165,827,775.05 $705,114.71 430,468,763; 76

EXHIBIT

32.

S T A T E M E N T S H O W I N G A M O U N T S O F L O A N S TO N O V . 16, 1 9 2 1 , I N C L U S I V E , M A D E TO C A R R I E R S U N D E R S E C T I O N 2 1 0 O F T H E
T R A N S P O R T A T I O N ACT, 1 9 2 0 , A S A M E N D E D , A N D A M O U N T S O F
R E P A Y M E N T S ON S U C H L O A N S .
Carrier.
A k r o n , C a n t o n & Y o u n g s t o w n R a i l w a y Co
,
A l a b a m a , T e i m e s s e e & ' N o r t h e r n R a i l r o a d Corporation
A l a b a m a & V i c k s b u r g R a i l w a y Co.
A n n A r b o r RaUroad Co
.......
Aransas Harbor Terminal Railway
A t l a n t a , B i r m i n g h a m & A t l a n t i c R a i l w a y Co
:Baltimore & Oliio R a i l r o a d Co
B a n g o r & Aroostook R a i l r o a d Co
Boston & Maine Railroad
Buffalo, R o c h e s t e r & P i t t s b u r g h R a i l w a y Co
C a m b r i a & I n d i a n a R a i l r o a d C3o
Carolina, CUnclifield & O h i o . R a i l w a y Co
C e n t r a l of Georgia R a i l w a y (iJo
C e n t r a l N e w E n g l a n d R a i l w a y Co
C e n t r a l V e r m o n t R a i l w a y Co
:
Charles City W e s t e r n R a i l w a y Co,
C h e s a p e a k e & Ohio R a i l w a y Co
Chicago & E a s t e r n Illinois R a i l r o a d Co., r e c e i v e r . . . . . .
Chicago G r e a t W e s t e r n R a i l r o a d Co
Chicago, I n d i a n a p o h s & Louisville R a i l w a y Co
Chicago, M i l w a u k e e & S t . P a u l R a i l w a y Co




Amounts.
$212,000.00
90,000.00
1,394,000.00
650,000.00
50,000.00
200,000.00
3,000,000.00
200,000.00
14,705,479.00
1,000,000.00
250,000.00
4,000,000.00
237,900.00
300,000.00
193,000.00
140,000.00
6,428,000.00
785,000,000.00
2,445,373.00
200,000.00
35,340,000.00

Repayments.

$60,000.00

'"20," 666." 66
"'"4," 666." 66
1,000,000.00

45,000.00

228

REPORT ON THE FINANCES.
Statement showing amounts of loans, etc.—Continued.
Carrier.

Amounts.

CJtiicago, Rock I s l a n d & Pacific ^Railway Co
Chicago & W e s t e r n I n d i a n a R a i l r o a d Co
C u m b e r l a n d & M a n c h e s t e r R a i l r o a d Co
E r i e R a i l r o a d Co
,.
E v a n s v i l l e , I n d i a n a p o l i s & T e r r e H a u t e R a i l w a y Co
F e r n w o o d , C o l u m b i a & Gulf R a i l r o a d Co
F l e m i n g s b u r g & N o r t h e r n R . R . Co
F o r t Dodge, Des Moines & S o u t h e r n R . R . Co
F o r t S m i t h & W e s t e r n R a i l r o a d Co., receiver of t h e .
Georgia & F l o r i d a R a i l w a y , receivers of
G r e a t N o r t h e r n R a i l w a y Co.
G r e e n e C o u n t y R a i l r o a d Co
,
Gulf, Mobile & N o r t h e r n R a i l r o a d Co
H o c k i n g Valley R a i l w a y Co
I l h n o i s C e n t r a l R a i l r o a d Co
,
I n d i a n a H a r b o r :Belt R a i l r o a d Co
I n t e r n a t i o n a l & G r e a t N o r t h e r n R a i l w a y Co., receiver of
I n t e r - U r b a n R a i l w a y Co
K a n s a s City, Mexico & O r i e n t R a i l r o a d Co., receiver o f t h e . .
K a n s a s City T e r m i n a l R a i l w a y Co
L a k e E r i e , F r a n k l i n & Clarion R a i l r o a d Co
L o n g I s l a n d R a i l r o a d Co., T h e
'
,
Louisville & Jeffersonville Bridge & R a i l r o a d Co
M a i n e C e n t r a l Railroad Co '.
Mirmeapolis & S t . Louis R a i k o a d Co
.'
Missouri, K a n s a s & T e x a s R a i l w a y Co. of T e x a s , receiver of,
Missouri Pacific R a i l r o a d Co
N a t i o n a l R a i l w a y Service Corporation
N e w Orleans, T e x a s & Mexico R a i l w a y Co
N e w Y o r k C e n t r a l R a i k o a d Co
"
N e w Y o r k , N e w H a v e n & H a r t f o r d R a i k o a d Co
Norfolk S o u t h e r n R a i l r o a d Co
:
N o r t h e r n Pacific R a i l w a y Co
P e n n s y l v a n i a R a i k o a d Co
,
Peoria & P e k i n U n i o n R a i l w a y Co
R u t l a n d R a i k o a d Co
."
Salt L a k e & U t a h R a i l r o a d Co
:
Seaboard Air L i n e R a i l w a y Co
Shearwood R a i l w a y Co
T a m p a N o r t h e r n R a i k o a d Co
,
T e r m i n a l R a i k o a d Association of S t . Louis
Toledo, S t . Louis & W e s t e r n R a i l r o a d Co., receiver of
Trans-Mississippi T e r m i n a l R a i k o a d Co
Virginia Blue Ridge R a i l w a y Co
Virginia S o u t h e r n R a i k o a d Co
Virginian R a i l w a y Co., T h e
Waterloo, Cedar FaUs & N o r t h e r n R a i l w a y Co
W e s t e r n M a r y l a n d R a i l w a y Co
Wheeling & L a k e E r i e R a i l w a y Co
W i l m i n g t o n , ;Brunswick S.' S o u t h e r n R a i l r o a d Co
W i c h i t a N o r t h w e s t e r n R a i l w a y Co
Total

,862,000.
,000,000.
375,000
,674,450
:l50,000.
33,000
7,250
200,000.
156,000
792,000.
,496,000.
60,000
515,000
,053,000
,440,000
579,000.
194,300.
633,500.
,500,000
580,000.
25,000.
719,000.
162,000.
,373,000
,382,000.
450,000.
071,760.
437,830.
234,000.
775,000.
530,000.
261,000.
000,000.
480,000.
799,000.
61,000.
000,000.
558,900.
29,000.
100,000.
896,925.
692,000
000,000.
106,000.
38,000
000,000.
320,000
772,800.
700,000.
90,000.
381,750,
259,467,217.00

EXHIBIT

Repayments.

$89,000.00

15,134,000.00

296,000.00

4,362,000.00
173,333.33

15,700.00

60,000.00

21,259,033.33

33.
J U N E 24,

1921.

Honorable ANDREW W . MELLON,

Secretary of the Treasury, Washington, D. C.
A bill is now pendiag in Congress to
provide additional compensation for veterans of the World War.
Under such bill each veteran is given the right to select adjusted
service pay, or an adjusted service certificate, or vocational trade
aid, or farm or home aid, or land settlement aid. What is meant by
these phrases is fully explained in the bill, a copy of which I send you
, herewith.
In my study of the bill I have tried to determine what financial
obligation its enactment would place upon the Treasury. Such
obligation your Department, I am sure, is equipped to ascertain. I
have no desire to place any undue burden upon you, but I would be
M Y DEAR M R . SECRETARY:




•SECRETARY OF T H E

-TREASURY,

229

grateful if you could see your way clear to indicate what the enactment of the bill would mean to the Treasury of the United States.
Thanking you in advance for any information which you may
furnish, I am
Very truly yours,
.
J. S. FRELINGHUYSEN,

U.S.S.
JULY 2,

1921.

I received your letter of June 24, 1921, with
regard to the Bill now pending in Congress (S. 506) ^^to provide adjusted compensation for veterans of the World War.'' In accordance
with your request, I am glad to indicate what financial obligation
this Bill would place upon the Government, and what its enactment
would mean to the Treasury of the United States.
The Bill which has been reported to the Senate provides, as you
know, for five optional plans, (1) adjusted service pay, (2) adjusted
service certificates, (3) vocational training aid, (4) farm or home aid,
and (5) land settlement aid. The financial obligation which its
passage would impose on the Treasury depends in large measure upon
the choice of plan which may be made by veterans entitled, to the
benefits of the Bill. I t is, therefore, impossible to make accurate
estimates at this time either as to the total cost to the Treasury or
as to the tiriie when the payments would-have to be made. The
, features of the plan which would entail the greatest expense are (1)
the cash payments to be made as adjusted service pay, (2) the payments and loans to be made on adjusted service certificates, and (3)
the payments involved in the so-called farm or home aid.
The most conservative estimates show that the Bill would cost
from about $1,500,000,000 (if the bulk of the payments were on
account of adjusted service pay, the greater part of which would fall
in the near future) to about $5,250,000,000 (if most veterans elected
to take adjusted service certificates, the payments on which would be
distributed over a perioci of 20 years). The actual cost of the Bill
should fall between these two extremes according to the choice of
plan made by the veterans. If, as seems probable, at least one-half
should elect the cash payment plan and about one-half the certificate
plan, with one-third of the latter borrowing on their certificates, the
ultimate cost of the Bill, it is estimated, would be oYer $3,330,000,000.
These estimates take no account of expenses of administration or
possible cost of affording vocational training aid, farm or home aid,
or land settlement aid to veterans who elect such benefits. These
will involve substantial additional expense. Under Title V of the
Bill, for example, any veteran who elects farm or home aid may obtain
in one payment or in installments an amount equal to his adjusted
service pay increased by 40 per cent, for the purpose of enabling him
on'or after January 1, 1922, to purchase or make improvements on a
city.or suburban home or farm. If any considerable proportion of
the veterans should choose this form of aid, the effect would be to
throw a heavier expense into the first two or three yea:rs, and perhaps
greatly increase the aggregate cost of the plan. ^
These estimates, incomplete as they are, show the heavy obligations to which the pending Bill would commit the country. To
impose these vast additional liabilities upon the Treasury, particuM Y D E A R SENATOR:




230

REPORT ON THE FINANCES.

larly under present conditions in industry and commerce, would in
my judgment create a serious situation.
Not the least disturbing feature of the Bill is the plan to postpone
actual distribution of the principal benefits conferred by the Bill to
the fiscal year 1923. This means that, without conferring immediate
benefits on ex-service men, the country would be committing itself
to a stupendous indeterminate liability which, once assumed, it would
have to carry through no matter how embarrassing it might prove to
the finances of the (Government and the business of the country when
the time comes for fulfillment. Incidentally this feature of the Bill
tends to mislead the people into the belief that in some way the proposed program can be accomplished without imposing a serious burden on the Treasury or the country. The result is to secure for the
Bill more favorable consideration than it could receive were the situation presented in its true light.
As a matter of fact, a plan to disburse even over a period of years
up to 4 or 5 billions of dollars as ^^adjusted compensation" must inevitably increase by that much the war burden which the American
people have to bear. I t would greatly swell the cost of Government
and virtually defeat the Administration's program of economy and
retrenchment. I t could be financed only by adding to the burden
of debt and taxes under which the country is now staggering. However financed, no such sum could be taken out of the public Treasury
without throwing a corresponding load upon the whole people in the
form of increased interest ciharges, increased taxes, and increased cost
of living. This burden, moreover, would be in addition to that
already imposed in most of the States, which have provided bonuses
in varying degrees of liberality to veterans of the late war.
, Nor could the vast payments required by the Bill be financed
without introducing grave complications into the refunding operations which will be necessary within the next few years. I n e Government has to face early maturities of public debt amounting to
about 7^ bilhons of dollars, of which about 5 biUions fall in the
same fiscal year in. which it is proposed to begin cash payments
under the BiU.. The greater part of this maturing debt will nave to be
refunded, and if a scSchers' bonus must also be financed the cost of
that refunding will be vastly increased' and the refunding operations themselves sjeriously embarrassed. The market for outstanding Government securities would be adversely affected and the
patriotic holders of Liberty bonds, instead of looking forward to
improved market conditions, would have to face the threat of further depression. I know of no one thing, for example, that would
so greatly strengthen the market for Liberty bonds as the assurance that Congress had oiice and for all given up consideration of a
soldiers' bonus.
I have already submitted to Congress, in my letter of April 30th
to the Chairman of the Committee on Ways and Means, a detailed
statement of the condition of the Treasury, the latest estimates of
the receipts and expenditures of the Government for the fiscal
years 1921 and 1922, and an outhne of the Treasury's program for
deaUng with the short-dated debt. The figures given in that letter
show that even without any expenditures on account of adjusted
compensation under the proposed Bill, there is grave danger that




SECRETARY OF THE TREASURY.

231

the necessary expenchtures of the Government in the near future
will exceed its current receipts, thus leaving deficits to be met by
new taxes or further borrowing. In these circumstances, I believe
that the best interests of the country demand that action be deferred upori the solchers' bonus or the Bill to provide so-called adjusted compensation. This is not a time to' impose several biUion
doUars of new liabihties on an already overburdened Treasury. I t
seems particularly inappropriate to give present consideration to the
measure when we stUl have before us the pressing probleia of revising the internal tax laws and finchng sufficient revenues to meet
the existing requirements of the Government. This problem must
be dealt with in the midst of extreme and widespread industrial depression. These conditions affect not only every industry; in our
own country, but are worldwide, and our past experience furnishes
no sure guide as to their duration. The revision of the tax laws,
therefore, so as to adjust them to present conditions and at the same
time produce sufficient revenues to meet the existing requirements
of the Government, is a matter of great chfficulty, and even without
the burden which would be imposed by the bonus, industrial and
commercial earnings in the current year have so decreased that it
is a matter of grave concern to the Treasury as to the amount of
revenue that will be received in 1922.
The country is under a solemn obhgation to those who fought its
war. Our first concern, of course, should be to make full provision
for the needs of chsabled veterans. To that object the country is
pledged to give without stint of its resources. I t would be unfortunate in the extreme, while we are stiU strugghng with that problem, to chssipate our resources in a sweeping plan for cash payments
to able-boched ex-solchers and sailors. The best interests of the
veterans cannot in the last analysis be considered separate and
apart from the best interests of the country as a whole, and I should
be derehct in my duty to the country arid to the veterans themselves if I failed to give this warning of the inevitable financial consecjuences of the pending Bill. Its chrect consequences are inescap- .
able, and I have already indicated what they would be. I t would a,lso involve grave dangers of renewed inflation, increased conimochty
prices and unsettled business coriditions.. The result would be serious injury and loss to the whole community, and in the long run
even tne veterans themselves would lose far more than they would
gain. I cannot bring myself to believe that this would be ^ ad^
justed compensation" for a service that was performed as the high- ,
est duty of citizenship and a sacrifice that can never be mieasured
in terms of money.
Very truly yours,
A. W.

MELLON,

Secretary.
Hon.

J O S E P H S . FRELINGHUYSEN,




United States Senate..

232

REPORT ON T H E FINANCES.
EXHIBIT

34.

A D D R E S S OF T H E P R E S I D E N T OF T H E U N I T E D STATES D E L I V E R E D TO T H E S E N A T E ON J U L Y 1 2 , 1 9 2 1 , R E L A T I V E TO T H E
SOLDIERS' ADJUSTED COMPENSATION BILL.
M R . PRESIDENT, AND GENTLEMEN OF THE SENATE:

There has come to my attention the pending unfinished business
before the Senate, and it is an imperative duty to convey to you
the probable effect of the passage at this time of the proposed act,
providing for adjusted compensation to our service men in the
World War. If tnis measure could be made effective at the present
time without disaster to the Nation's finances and without hindrance
to imperative readjustment of our taxes it would present an entirely
different question than that which is before you. In a personal
as well as a public manner, which ought to be a plight of good faith,
I have commended the policy of generous treatment of the Nation's
defenders, not as a part of any contract, not as the payment of a
debt which is owing, but as a mark of the Nation's gratitude.
Every obligation is to the disabled and dependent. In such reference as has been made'to general compensation there has been a reservation as to the earliest consistent time for such action if it is taken.
Even without such reservation, however, a modified view would be
wholly justifiable at the present moment, because the enactment of
the compensation bill in the midst of the struggle for readjustment
and restoration would hinder every effort and greatly imperil the
financial stability of our c^ountry. More, this menacing effort to
expend billions in gratuities will imperil our capacity to discharge
our first obligations to. those we must not failto aid.
I am addressing the Senate directly because the problem is immediately yours, as your unfinished business, but the Executive branch of
the Government owes it to both Houses of Congress and to the country
frankly to state the difficulties we daily are called upon to meet, and
the added peril this measure would bring.
Our land has its share of the financial chaos and the industrial
depression of the world. We little heeded the growth of indebtedness
or the limits of expenditure during the war because we could not
stop to count the cost. Our one thought then was the winning of the
war, and the survival of the Nation. We borrowed and loaned—
individuals to the Nation and the Government to other Governments,
and to those who served the Nation, with little thought of settlement.
I t was relatively easy then, because national life was at stake. In
the sober aftermath we face the order of reason, rather than act amid
the passions of war, and our own land and the world are facing,
.problems never.solved before. There can be no solution unless we
face the grim truths and seek to solve them in resolute devotion to
duty. After a survey of more than four months, contemplating conditions which would stagger all of us w^ere it not for our abiding
faith in America, I am fully persuaded that three things are essential
to the very beginning of the restored order of things. These are
the revision, including reduction, of our internal taxation, the
refunding of our war debt, and the adjustment of our foreign loans.
I t is vitally necessary to settle these problems before adding to our
Treasury any such burden as is contemplated in the pending.bill.




SECRETARY OF THE TREASURY.

233

I t is unthinkable to expect a business revival and the resumption
of the normal ways of peace while maintaining the excessive taxes^
of war. I t is quite as unthinkable to reduce our tax burdens while
committing our Treasury to an additional obligation which ranges^
from three to five billions of dollars. The precise figures no one can^
give. If it is conceivably true that pnly two hundred millions a year
will be drawn annually from the Treasury in the few years immediately before us, the bestowal is too inconsequential to be of real
value to the Nation's defenders; and, if the exercise of the option
should call for cash running into billions, the depression in finance:
and industry would be so marked that vastly more ha:rm than good
„ would attend.
Our Government must undertake no obligation which it does not
intend to meet. No Government fiat will pay our bills. The
exchanges of the world testify to-day to that erroneous theory. Wemay rely on the sacrifices of patriotism in war, but to-day we facemarkets, and the effecits of supply und demand, and the inexorable
laws of credits in time of peace.
At the very moment we are obliged to pay 5 | per c^ent interest for
Government short-time loans to care for our floating indebtedness, a
rate on Government borrowing, in spite of tax-exemption, which
ought to prevail in private transactions for the no:rmal :Lnterest
charges in financing our industry and commerce. Definite obligations amounting to seven and a half billions in war savings certificates, victory bonds and certificates covering floating indebtednessare to mature in the two years immediately following, and the overburdening of the Treasury now means positive disaster in the yearsimmediately before us. Merest prudence calls out in warning.
Our greatest necessity is a return to the normal ways of peaceactivities. A modest offering to the millions of service men is apoor palhative to more inillions who may be out of employment.
Stabilized finance and well-established cc)nfidence are both essential
to restored industry and commerce.
The slump which is now upon us is an inevitable part of war's
aftermath. I t has followed in the wake of war since the world
began. There was the unavoidable readjustment, the inevitable
charge-off, the unfailing attendance of losses in the wake of high
prices, the inexorable defiation which inflation had preceded. I t has
been wholly proper to seek to apply Government relief to minimize
the hardships, and the Government had aided wherever possible, and
is aiding now, but all the special acts ever dreamed of, all the particular favors ever conceived will not avoid all the distresses nor
ward off all the losses. The proper mental state of our people will
commit us resolutely and confidently to our tasks, and definite assurances as to taxation and expenditure will contribute to that helpful
mental order. The only sure way to normalcy is over the paths
nature has marked throughout all human experience.
With the approval of Congress the Executive branch of Government has been driving toward that decreased expenditure which is
the most practical assurance of diminished taxation. With enthusiastic resolution your administrative agents are making not only
conscientious effort to reduce the call for appropriations, but toreduce the cost of government far below the appropriations you have
already provided. I t is easy to believe that the only way to diminish




234

REPORT ON THE FINANCES.

the burdens which the people must pay is to cut the outlay in^which
public moneys are expended. War is not wholly responsible for
staggering costs; it has merely accentuated the menace which lies in
mounting cost of government and excesses in expenditure which a
-successful private business would not tolerate.
I can make you no definite promise in figures to-day, but I can
pledge you a most conscientious drive to reduce Government cost
oy many inillions. I t would be most discouraging to those who are
bending their energies to save millions to have Congress add billions
to our burdens at the very beginning.
Even were there not the threatened paralysis of our Treasury, with
its fatal reflexes on all our activities which concern our prosperity,
would it not be better to await the settlement of our foreign loans ?
A t such a time it would be a bestowal on the part of our Government
when it is able to bestow.
The United States participates in none of the distributable awards
of war, but the world owes us he'avily, and will pay when restoration
is wrought. If the restoration fails world-bankruptcy attends. I
believe the world restoration is possible, but only with honest, diligent work in productivity on the one hand, and honest and diligent
opposition to needless public expenditure on the other.
If the suggested recommitment of this measure bore the merest
suggestion of neglect or a hint of national ingratitude I would not
urge it. I t has been my privilege to speak to Congress on our obligations to the chsabled and dependent soldiers and the Government's
deep desire to prove its concern for their welfare. I should be
ashamed of the Kepublic if it failed in its duty to them. Neither
armistice nor permanent peace, puts an end to the obligations of
Government to its defenders or the obligations of citizens to the
Government. Mindful of these things the administrative branch of
the Government has not only spoken, it has acted and has accomplished.
I n view oif some of the things which have been said, and very
oarelessly said, perhaps I ought to report officially some of the things
which have been done. In the Department of War Risk Insurance
there have been filed up to July 7, 1921, compensation and insurance
claims numbering 813,442. Of these, 747,786 have been adjudicated,
a t an expenditure of $471,946,762, There were 200,000 claims pending when the War Risk Department was reorganized, late in April,
this year,, and the number of pending claims has been reduced by
134,344. AU work in this department wiU be current by the 21st of
this July; that is to say, aU action which the bureau may take on a
given case will be current, though new claims are being filed at the
rate of 700 per day.
There have been requested 887,614 medical examinations, and
less than fourteen thousand await medical .action. Up to July 7
there has been a total of 147,827 patients admitted for care to our
hospitals, of whom 26,237 were in hospitals on July 7, and there were
on this ciate 6,000 beds in Government institutions without occupants. You are already aware of the progress made toward the
oonstruction of additional Government hospitals, not because we
are not meeting all demands, but to better meet them and the better
to specialize in.the treatment of those.who come under our care.




SECRETARY OF THE TREASURY.

235

There has been paid out in allotment and allowances the sum of
•$578,465,658, and nearly $4,000,000,000 of Government insurance is
in force.
In vocational training and rehabilitation of disabled soldiers there
ihave been enrolled to date 107,824 men. To-day there are 75,812 men
who are training with pay, at the maximum cost of $160 per month;
^8,208 training without pay, but at a tuition and supply outlay of $35
per month. Four thousand disabled men have completed their training and have been returned to gainful employment. These earned
an average of $1,051 per year before entering the Army, and are
earning to-day, in spite of their war disability and in spite of diminished wage or salary levels, an average of $1,550 per annum.
I t is an interesting,revelation and a fine achievement, attended by
both abuses and triumphs. Congress has appropriated $65,000,000
for this noble work for the current year, but the estimated accept:ance of training for the year before us contemplates an average of
95,000 disabled men, and the cost will be in excess of $163,000,000, or
nearly a hundred millions more than Congress has provided. This
-additional sum must be made available. With the increase of avail.ability to training, as recently urged upon Congress, the estimated
additional expenditure will be $468,000,000 per annum, untU the
jpledge of training is discharged. These figures suggest neither neglect nor ingratitude. I t is more than the entire annual cost of Federal government for many years following the Civil War, and challenges every charge of failure to deal considerately with our Nation's
'defenders. I do not recite the figures to suggest that it is all we may
do, or ultimately ought to do. I t is ineyitable that our obligations
will grow, and grow enormously. We never have neglected an(3 never
will neglect the dependent soldier, a.nd there is no way to avoid Time's
a:'emorseless classifications.
.
Contemplating tho tremendous liability, which the Governinent
never will shirk, I would be remiss in my duty if I failed to ask
Congress to pause at this particular time, rather than break down
our treasury from which so much is later on to be expected. The
defenders of the Republic amid the perils of war v/ould be the last
of our citizenship to wish its stability menaced by an individual pittance of peace.
I know the feelings of my own breast, and that of yours and the
grateful people of this Republic. But no thoughtful person, posrsessed with all the facts, is ready for added compensation for the
healthful, self-reliant masses of our great armies at the cost of a
treasury breakdoAvn which will bring its hardships to all the citizens of the Republic; Its enactment now in all probability would
:so add to our interest rates that the added interest charge on new
and refunded indebtedness may alone exceed the sum it is proposed
t o bestow. When Congress was called in extraordinar}^ session I
called your attention to the urgent measures which I thougiht demanded your consideration. You promptly provided the eme:rgency
tariff, and good progress has been made toward the much-needed and
more deliberate revision of our tariff schedules. There is confessed
disappointment that so little progress has been made in the readjustment and reduction of the war-time taxes. I believe you share with
me the earnest wish for early accom^plishment.




236

REPORT ON T H E FINANCES.

I t is not expected that Congress will sit and ignore other problemsof legislation. There are often urgent problems which must enlist
your attention. I have not come to speak of them, though the
reorganization of the war risk and vocational training, now pending,
would hasten the efficient discharge of our willing obligation's to the*
disabled soldiers.
But I want to emphasize the suggestion that the accomplishment
of the major tasks for which you were asked to sit in extraordinary
session will have a reassuring effect on the entire country and speed
our resuiription of normal activities and their rewards which tend to
make a prosperous and happy people.
EXHIBIT

35.

The following stateme-nt shows the transactions of the fiscal year
1921 on the basis of the daily Treasury statements. This does not
include receipts and expenditures on account of the Postal Service,,
other than salaries and expenses of the Post Office Department in
Washington, postal deficiencies, and items appropriated by Congress
payable from the general fund of the Treasury:
RECEIPTS.

Ordinary:
. '
Customs
..:...
Internal revenue—
Income and profits t a x . '
Miscellaneous
Miscellaneous revenue
Panama Canal tolls, etc
Total ordinary

$308, 564, 391. 00'
3, 206, 046,157.74
1, 390, 380, 823. 28
707, 660,847.10*
12, 280, 741. 79

.......'.

5, 624, 932, 960. 91

Excess of ordinary receipts over ordinary disbursements
Excess of ordinary disbursements over ordinary receipts

509, 005, 271. 61
•.

Public debt:
Liberty bonds and Victory notes
Treasury notes
Certificates of indebtedness
War-savings securities
. Postal savings bonds
Deposits for retirement of National-bank notes and Federal
Reserve bank notes (acts of July 14, 1890, and Dec. 23,
1913)
.^.
Total

-

^14, 943.00-'
311,191, 600.00
8, 486, 964, 950.00
26, 587, 420. 61
178, 880.0040, 090, 415. 00'
8, 864, 998, 322. 61

Grand total receipts

14, 489, 931, 283.52
DISBURSEMENTS.

Ordinary:
Legislative establishment
Executive proper
,
State D e p a r t m e n t . . . . .*
Treasury Department.
War Department.
Department of Justice
Post Office Department.

'
:
:

$18, 994, 565.17
794, 384.12*
8, 780, 796.84
488, 636,.833. IO1,101, 615,013. 32
17,206,418.03
^ 135^ 359^ 108.17

1 Comiter entry (deduct).
2 Owing to settlement between the Post Office Department and the Railroad Administration on account
of transportation during Federal control, Post Office Department, expenditures for .June, 1921, include
$65,575,832.03 paid to the Railroad Adniinistration. Deposit of this payment by Railroad Administration
resulted in decrease in expenditures on account of '^ Federal control of transportation systems and transportation act, 1920," by a corresponding amount.




SECRETARY OF THE TREASURY.
Ordinary—Continued.
Navy Department
Interior Department
Department of Agriculture.
Department of Commerce
Department of Labor.
United States Shipping Board
Federal control of transportation systems and transportation
act, 1920
\.
:
War Finance Corporation.
•Grain Corporation
Other independent offices and commissions
District of Columbia
lAterest on public debt

.

237

$650, 373, 835.58357, 814, 893. 01
. 119, 837, 759.41
30, 828, 761.55
8, 502, 509.55
130, 723, 268.26
^ 730^ j n ^ QQQ 93
^ 22, 028, 452.12
* 9o, 353^ 411.42
119, 346,189.40
22, 715,158. 60
999,144, 731. 35

Total
D e d u c t unclassified repayments, etc

5, 009, 710, 854. 74
922, 593.14

Total
Panama Canal
,:
Purchase of obligations of foreign Governments
Purchase of Federal farm-loan bonds.'

5, 008, 788, 261. 60
16, 461, 409.47
73, 896, 697.44
16, 781, 320. 79

Total ordinary

5,115, 927, 689. 30 -

Public debt:
Certificates of indebtedness redeemed
War-savings securities redeemed
Old debt items retired
First Liberty bonds retired
Second Liberty bonds retired
Third Liberty bonds retired.... .^
Fourth Liberty bonds retired
Victory notes retired^.
:
National-bank notes and Federal reserve bank notes retired..
Total public debt.

8,552,225,500. 00
160, 256, 308.19
152, 361. 50
202, 650.00
8, 703, 400.00
51,172, 350. 00
39, 414, 450. 00
332, 439, 450. 00
37, 460, 701.00
9,182, 027,170.69

Grand total expenditures, as per daily Treasury statement, June 30, 1921.

14, 297, 954, 859. 99

SUMMARY.

N e t balance in general fund June 30, 1920.
Receipts, exclusive of principal of the public debt (see above)..
Publie debt receipts (see above)
'
TotaJ.
Disbursements, exclusive of principal of the public debt (see
above)
.P u b l i c debt disbursements
,
Total
Net balance in general fund June 30, 1921

$357, 701, 682.23
5, 624, 932, 960.91
8,864, 998, 322.61
14, 847, 632, 965. 75
5,115, 927. 689. 30
9,182, 027,170. 69
14,297, 954,859. 99
549, 678,105.76

3 Deduct excess of credits.
* Net expenditures after taking into account credits and $100,000,000 applied by United States Grain Corporation to reduction of capital stock and reflected in miscellaneous receipts for fiscal year 1921. (See note,
p. 2, Daily Treasury Statement for August 21, 1920.)
,
.
.
NOTE.—Because of legislation establishing revolving funds and providing for the reimbursement ofappropriations, commented upon in the annual report of the Secretary of the Treasury for the fiscal year 1919, p.
126, ff., and in the report for the fiscal year 1920, on pp. 47-49, the gross expenditures in the case of some
•departments and agencies, notably the War Department, the Railroad Administration, and the Shipping
Board, have been considerably larger than above stated. This statement does not include expenditures
on account of the Postal Service other than salaries and expenses df the Post Office Department in Washington, postal deficiencies, and items appropriated by Congress payable from the general fund of the
Treasury.




EXHIBIT

36.

CO

00

The following table shows the cash expenditures of the Government for the fiscal years ended June 30, 1917,
June 30, 1918, June 30, 1919, June 30, 1920, and June 30, 1921, as published in the daily Treasury statements andclassified according to departments and establishments:
EXPENDITURES.
Fiscal year 1917
(revised).

Ordinairy:
Legislative establishment.
Executive proper
'
State Department
Treasury Department
War Department
Department of Justice
:
Post Office Department
Navy Department
Interior Department
Department of Agricultm'e
Department of Commerce
Department of Labor
Umted States Shipping Board
.
Federal control of transportation systems and transportation act, 1920.
War Finance Corporation
Grain Corporation
Food and Fuel Administrations
'.
Other«independent offices and commissions
District of Columbia
Interest on public debt
. Total
Deduct unclassified repayments, etc.
Panama Canal
Payment for West Indian Islands
Purchase of obligations of foreign Governments,..
Purchase of. Federal farm loan bonds
Subscription to stock, Federal land banks
Tot^l ordinary.




S15,092, 373.97
1,280, 484. 85
6,169,316.41
84, 294,313. 65
358,158, 361.12
10, 566,401.25
1,895, 578.21
239,632, 756.63
216,415, 516.48
,29,547,234. 01
11,689, 792.94
3, 852,111. 34
14,291, 282.96

7, 558, 829. 88
13,681, 595. 39
24,742, 701.68

Fiscal year 1918.

S15; 825, 506. 72
662, 847. 53
892,898. 09
152, 500,426. 53
4, 850,687,186. 88
12, 964,628.18
4, 173,103. 28
1,278, 840,486. 80
244, 556,893.96
42, 870,188. 28
12, 833, 808. 82
469,268. 09
770, 681, 550. 83
120, 263,996.17
44, 929,168. 38
54,859, 896. 40
12,714,740.06
14,446,832.46
189,743;277.14

Fiscal year 1919.

$17, 090,106. 24
17, 467,352.03
20, 766,400.14
227, 277,657. 81
8,995,•880,266.18
15, 717,022.36
2, 412, 250; 05
2,002, 310,785.02
288, 285,627.61
39, 246,454.41
15, 589, 514.30
12, 942, 558.75
606,870.90
1, 820,
358, 795,274.60
302, 621,846.92

Fiscal year 1920.

S19,327, 708. 72
•6,675, 517. 58
13,686, 024. 42
322, 315,627-. 43
380.86
1,610, 587,
17,814, 398.18
50,049, 295.07.
736,021, 456. 43
279,244, 660. 87
65,546, 293.14
30,010, 737.75
^ 5,415,358.40
530, 565,649.61.
2 1,036,672, 157. 53
3 228,472,186. 61
494. 70
5 350,328,

87,338,207.08
75,375,809.41
16,014,105. 80
619, 215, 569.17

59, 469,305.17
19,987, 898. 41
1,020,251,622. 28

Fiscal year 1921.

S18,994, 565.17
794, 384.12
8, 780,796. 84
488,636, 833.10
1,101,615, 013.32
17, 206,418. 03
1135,359, 108.17
650, 373,835.-58
893. 01
. 357,814,
• 119,837,759. 41
30,828, 761. 55
8,562, 509.55
130,723. 268. 26
1730,71i; 669.98
4 22,028, 452.12
411.42
6 90, 353,
119, 346,189. 40
22,715,158.60
999,144,731. 35

1,038,868,650.77
^ 150, 275.43

7,847,916,704. 60
^ 26,469,620.31

14,934,953,678. 78
7 895,060. 84

5,945,397, 399. 94
4,399, 847.00

5,009,710, 854.74
922,593.14

1,039,018,926.20
19, 782,509. 32
25,000,000. 00
885,000,000. 00

7,874,386,324. 91
19,268,099.30

14,935,848, 739.62
13,195,522.37

5,940,997,552.94
11,365, 714. 01

5,008, 788,261.60
16,461,409.47

4,738,029,750. 00
65,018, 296.93

3,479,255,265. 56
86,580,427.48

421,337,028. 09
29,643,546.17

12,696,702,471.14

18, 514, 879,955.03

73,896,697.44
16,781,320.79 •

8,880, 315. 00
1,977,681,750.52

6,403,343,841. 21

5,115,927,689.30

O

• pi
H

O
H

M
>
O
Ul

Public debt:
Certificates of indebtedness redeemed
*
?
War-savings securities redeemed
Old debt items retired
:
One-year Treasury notes redeemed (sec. 18, Federal reserve act, approved
Dec. 23, 1913)
First'Liberty bonds retired
,
Second Liberty bonds retired
Third Liberty bonds retired
Fourth Liberty bonds retired
Victory notes retired
National bank notes and Federal reserve bank notes rietired (acts of July
14, 1890, and Dec. 23, 1913)
Total public debt.
Grand total expenditures, as per daily Treasury statement, June 30, 1917
(revised)
Graiid total expenditures, as per daily Treasury statement, June 30, 1918
Grand total expenditures, as per daily Treasury statement, June 30, 1919
Grand total expenditures, as per daily Treasury statement, June 30, 1920
Grand total expenditures, as per daily Treasury statement, June 30, 1921

632, 572, 268. 00
- 18,398.75
4, 390, 000. 00

1,312, 732. 00
;, 727, 345. 98
20,650. 33

I, 538, 078,900. 00
131, 519, 529. 91
63, 029, 583. 00

•, 362, 000. 00
656,000. 00
., 050,000. 00
:, 935,500. 00

19,150,000. 00
4,003,050. 00
180,351,000. 00
201, 655,700. 00
165,000,000.00

15,589,117,458.53
200, 982, 934.62
509,165.97

8,'552,225,500.00
160, 256,308.19
152, 361. 50

32, 336,700. 00
241,144,200.00
296, 300, 800.00
405, 222, sm. 00
249, 001, 500. 00

202,650. 00
8,703,400.00
51,172,350. 00
39,414,450.00
332,439,450.00

40, 564,115. 50

21,625, 225. 00

23,718,797. 50

23,424,164. 50

37,460,701.00

677, 544,782. 25

7,214,689,453.29

16,326, 506,560. 41

17,038, 039, 723.62

9,182,027,170.69

Q
pi
H
H

2, 655, 226, 532. 77
19,911,391,924.43

34, 841, 386,515. 44

>

23,441,383,564. 83
14,297,954,859.99

1 Owing to settlement between the Postoffice Department and the Railroad Administration on account of transportation during Federal control, Postoffice Department
expenditures for June, 1921, include S65,575,832.03 paid to the Railroad Administration, Deposit of this payment by Railroad Administration resulted in decrease in expenditures on account of " Federal Control of Transportation Systems and Transportation Act, 1920," by a corresponding amount.
2 Includes $288,399,222.46 payinents on certificates of indebtedness of Director General of Railroads, due July 15, 1919.
• 3 Deduct excess of credits resulting from deposits of War Finance Corporation representing proceeds of redemptions of its holdings of United States securities. See note 2, page 2,
daily Treasury statement for June 30, 1920.
'' Deduct excess of credits.
5 Includes $350,000,000 applied by United States Grain Corporation to reduction of capital stock and reflected in "MisceUaneous receipts for fiscal year 1920." See note 1, page 2,
daily Treasury statement for June 30, 1920.
.
, 6 Net expenditure after taking into account credits and $100,000,000 applied tb reduction in capital stock of United States.Gram Corporation.
7 Add.

•

.

Ul

,

Pi
K!

O

o
^
t^
;>
Ul

NOTE.—Because of legislation establishing revolving funds and providing for the reimbursement of appropriations, commented upon in the annual report of the Secretary of
the Treasury for the fiscal year 1919, page 126, £E., and in the report for the fiscal year 1920 on pp. 47-49, the gross expenditures in the case of some departments and agencies, notably
the War Department, the Railroad Administration, and the Shipping Board, have been considerably larger than above stated. This statement does not include expenditures on
account of the Postal Service other than salaries and expenses of the Post Office Department in Washington, postal deficiencies, and items appropriated by Congress payable ,
from the general fund of the Treasury.
•
-




to
CO

240

R.EPORT ON

THE

EXHIBIT

EINAJSTCES.

37.

S T A T E M E N T SHOWING C L A S S I F I E D R E C E I P T S AND D I S B U R S E M E N T S OF T H E U N I T E D S T A T E S G O V E R N M E N T , E X C L U S I V E O F
T H E P R I N C I P A L OF T H E P U B L I C D E B T , B Y M O N T H S , F R O M A P R . 6,
1 9 1 7 , TO OCT. 3 1 , 1 9 2 1 , A S P U B L I S H E D I N D A I L Y T R E A S U R Y
STATEMENTS.
• RECEIPTS.

Customs.

A p r . 6 t o 30, 1 9 1 7 . ; . . $17,863,547.22
28,660,148.60
May, 1917
J u n e , 1917 (revised).- 18,686,895.14
Total A p r . 6, 1917,
to J u n e 30,1917..

Income and
profits t a x .

Miscellaneous
internal
revenue.

MisceUaneous
revenue,
including
P a n a m a Canal.

$24,075,386.24
107,601,090.34
195,230,281.19

$35,387,512. 86
50,009,778.45
56,993", 915.16

$6,119,713.64
11,996,371. 78
14,814,156.47

$83,446,159.96
198,267,389.17
285,725,157.96

32,930,241.89

567,438,707. 09

Total.

326,906,757.77

142,391,206. 47

9,478,880.98
15,805,129.91
4,248,091.69
15,902,255.99
6,026,475.01
15,201,388.70
5,987,904.91.
13,647,946.24
6,720,898.26
11,935,389.41
13,725,534. 51
11,247,214.10
11,428,560.88
12,163,216. 06
13,200,936. 38
12,019,441.74
31,424,027. 09
18,106,373.13
83,012,299. 95
16,445, 531.99
342,104,796.75
19,925,706.94
17,598,789.28 1,786,647,885.43

50,895,959.22
43,922,598.77
41.265.393.95
50,318,414.27
81,536,702.42
61,425,075.62
61.665.347.96
59,115,478.32
89,635,237.66
93,113,711.68
135,081,929.01
104,052,171.39

7,747,666.17
83,927,636.28
10,423,584.41
74,496,530. 86
13,616,104.84
76,109,362. 50
20,504,025.14
90,458,290. 56
39,297,787.35
139,490,777.44
18,661,246.19
105,059,070. 42
18,099,084.97
103,356,209.87
14,762,583.25
. 99,098,439.69
17, 583,640.17
156,749,278. 05
16,747,600.64
209,319,144.26
97,633,678.29
594,746,110.99
• 23,473,167.68 1,931,772,013.78

179,998,383. 49 2,314,006,291. 84

872,028,020.27

298,550,169.10

65,210, 500.96

J u l y , 1917
A u g u s t , 1917
S e p t e m b e r , 1917
October, 1917
N o v e m b e r , 1917
December, 1917
J a n u a r y , 1918
F e b r u a r y , 1918
M a r c h , 1918
April, 1918
May, 1918
J u n e , 1918.'.
T o t a l for fiscal year
1918

3,664,582,864.70

22,594,804.69
641,877,137.14
23,544,439.33
152,252,031.72
13,851,525.72
151,884,653.80
16,663,790.75
151,580,759.96
169,846,822;58
310,994,263.19
14,645,22^1.92
203,902,'264.23
27,681,278.13 . 195,842,841.34
23,128,580.27
162,759,163.83
31,910,509.72 1,297,848,946.22
422,552,300. 56
159,655,714.78
92,486,335.12
279,262,210.68
56,505,264.07 1,181,500, 563. "K

J u l y , 1918 . . . .
A u g u s t , 1918
S e p t e m b e r , 1918
October, 1918
N o v e m b e r , 1918
December, 1 9 1 8 . . : . . .
J a n u a r y , 1919
F e b r u a r y , 1919
'March, 1919
A p r i l , 1919
May, 1919
J u n e , 1919

497,496,376.62 105,948,066.11
15,837,889.72
30,795,666.13
14,175,802. 76
83,736,123.50
36,308,166.'21 . 89,005,937.44
12,719,024.43
30,136,620. 58
11,453,096.69
93,327,251.94
28,820,184.49
12, 583,861.29
99,743,394. 83
61,916,648.37 117,658,483.35
9,681,907. 59
43,141,373.49 112,287,675.18
12,732,514.54
30,341,342. 50
14,979,078.02
94,310,163. 04
17,876,270.46 1,129,821,269. 04 118,240,897.00
20,141,486. 97
107,696,034. 35 135,059,064.46
20,896,644.65
50,614,139. 20 115,265,091.71
21,380,290.27
971,695,866. 31 131,919,143.11

T o t a l for fiscal year
1919.
.. .

184,457,867. 39 3,018,783,687.29 1,296,501,291.67

652,514,290.08

5,152,257,136.43

44,043,414.30 110,038,601.29
28,615,312.08 113,817,095.93
944,897,366. 34 140,757,151.39
34:903,495.13 139,333,735.95
45,556,651.10 113,895,464.23
905,307, 590.08 125,797,975.12
46,726,771.16 136,095,229.78
49,276,050.40 118,657,904.94
918,879,463. 52 117,251,480.30
105,823,389.13 107,873,045.02
76,508,712.17 108,538,599.91
744,411,072.34 . 128,026,003.05

53,201,441.60
105,052,760.89
32,176,712.96
58,596,048.11
54,544,178.14
37,759,624.98
43,887,135.23
34,814,497.32
28,532,046.38
75,644,088.00
43,324,835. 88
399,097,794. 34

227,781,703.02
268,538,830.96
1,142,555,445.17
257,109,755.23
241,385,761.91
1,092,691,597.63
255,338,026.67
229,527,340.77
1,099,940,623.76
317,258,320. 39
257,501,375.32
1,305,836,608.05

322,902,650. 39 3,944,949,287. 75 1,460,082,286. 91

966,631,163. 83

6,694,565,388. 88

107,670,917. 32
144,710,931.34
147,344,343.27
122, 805,403.43
124,868,247.10
122,664,468.74
111, 432,952.10
111, 599,939. 74
95,867,254. 03
90,985,753.69
94,812,476.67
115,617,135.85

27,083,618.93
164,810,344.05
23,742,762.32
15,943,980.45
67,474,109. 87
120,098,954.39
34,186,441. 81
45,299,962.09
69,012,822.22
56,386,799.99
51,145,880.68
44,758,912.09

230,366,525.45
398,400,665.68
911,397,071.81
220,034,804. 97
275,420,812.25
931,989,397. 32
217,328,249.10
248,563,614.78
921,627,602.72
296,170,665. 82
223,706,398. 89
750,017,152.12

308,564,391. 00 3,206,046,157. 74 1,390,379,823. 28

719,942, 588: 89

5,624,932,960. 91

20,498,245.83
21,053,662. 06
24,724,214.48
24,276,476.04
27,389,468.44
23,.826,407.45
28,628,890. 50
26,778,888.11
34,377,633. 56
27,917,798.24
29,129,227.36
34,301,738.32

J u l y , 1919
A u g u s t , 1919
S e p t e m b e r , 1919
October, 1 9 1 9 . . . . . . . .
N o v e m b e r , 1919
December, 1919
J a n u a r y , 1920
F e b r u a r y , 1920
March, 1920
April, 1920
May, 1920
,
J u n e , 1920
T o t a l for fiscal year
1920

30,694,297. 30
64,917,691.90
29,327,518. 83
59,551,871. 46
24,036,208.77
716,183,757. 45
25, 599,595.60
55,685,825.49
21,884,850. 58
61,193,604. 70
18,554, 794.65
670,671,179.54
17,485,532. 78
54,223,322. 41
21,152,665. 92
70,511,047.03
29,203,977. 43
727, 543,549. 04
40,417,183.94
108,380,928.20
25,485,133.15
52,262,908. 39
24,722,632. 05 • 564,920,472.13

J u l y , 1920
A u g u s t , 1920...
S e p t e m b e r , 1920
October, 1920
N o v e m b e r , 1920
December, 1 9 2 0 . . . : . .
J a n u a r y , 1921
F e b r u a r y , 1921
March, 1921
April, 1921
May, 1921
J u n e , 1921
T o t a l for fiscal year
1921




241

SECRETARY OF T H E TREASURY.
Statement showing classified receipts, etc.—Contmued.

Customs.

July,1921
A u g u s t , 1921
S e p t e m b e r , 1921
October, 1921
T o t a l J u l y I t o Oct.
31,1921

$19,796,290.37
26,449,062.28
23,356,692. 08
26,408,043.05
96.010,087.78

Miscellaneous
internal
revenue

Miscellaneous
revenue,
including
P a n a m a Canal.

$47,156,908.02 $110,994,768.44
. 47,439,706.64 136,780,512. 99
537,492,412. 86 116,626,662.53
47,986,607.45 112,873,295.45

$31,120,487.96
31,773,904.92
11, 852,492.61
50,579,565.39

Income and
profits t a x .

680,075,634.97 .477,275,239.41 | 125,326,450

Total.

$2«9,068,454.79
242,443,186. 83 .
689,328.260.08
237,847,511.34
1,378,687,413.04

o
RECAPITULATION.

A p r . 6, 1917, t o J u n e
65,210, 500. 96
30, 1917
.'
Fiscal year 1918
, 179,998,383.49
184,457,867. 39
Fiscal year 1919
322,902,650. 39
Fiscal year 1920
308, 564,391. 00
Fiscal year 1921
J u l y 1,1921, t o Oct.
96,010,087.78
31,1921
G r a n d total

326,906,757. 77 142,391,206. 47
2,314,006,291. 84 872,028,020.27
3,018,783,687.29 1,296,501,291.67
3,944,949,287.75 1,460,082,286.91
3,206,046,157. 74 1,390,379,823.28
680,075,634.97

477,275,239.41

32,930,241.89
298,550,169.10
652,514,290.08
966,631,163.83
719,942,588. 89

567,438,707. 09
3,664,582,864.70
5,152,257,136.43
0,694,56^,388. 88
5,624,932,960.91

125,326,450.88 "1,378,687,413.04'

1,157,143,881.01 13,490,767,817. 36 5,638,657,868.01 2,795,894,904.67 23,082,464,471.05
DISBURSEMENTS.
O r d i n a r y , including special,
e x c e p t foreign
loans.

A p r . 6 t o 30, 1917
M a y , 1917 .
. .
J u n e , 1917 (revised)..
T o t a l A p r . 6, 1917,
t o J u n e 30,1917

Foreign loans.

Total.

Deficit.

$279,213,777.20
526,565,555.96
410,107,295.39

$195,767,617.M
328, 298,166.79
124,382,137.43

885,000,000.00 1,215,886,628.55

648,447,921.46

$79,213,777. 20 .^200,000.000.00
119,065,555.96 407,500,000.00
132,607,295.39 277,500,000.00
330,886,628.55

209,810,845.97
J u l y , 1917
279,457,364.14
A u e u s t 1917
350,378,285.69
S e p t e m b e r , 1917
463,668,752. 52
October 1917
514,152,057.53
N o v e m b e r , 1917 ..".
613,211,859.32
December 1917
720,156,0.45.69
J a n u a r y , 1918
687,686,985.74
February, 1,918......
838,293,809.24
March 1918
927,787,779.23
A p r i l , 1918 .
1,084,195,233.65
M a v . 1918
1,269,873,702.42
J u n e , 1918

452,500,000.00
478,000,000.00
396,000,000.00
480,700,000.00
471,929,750.00
492,000,000.00
370,200,000.00
325,()O0,'000.OO
317,500,000.00
287,500,000.00
424,000,000.00
242,700,000.00

Surplus.

578,383,209. 69
662,310,845.97
682,960,833.28
757,457,364.14
670,268,923.19
746,378,285.69
853,910,401.96
944,368,752.52
846,591,030.09
986,081,807.53
1,105,211,859.32 1,000,152,788.90
1,090,356,045.69
986,999,835.82
913,588,54,6.05
1,012,686,985.74
999,044,531.19
1,155,793,809.24
1,005,968,634.97
1,215,287,779. 23
913,449,122.66
1,508,195,233.65
1,512,573,702.42
$419,198,311.36

T o t a l for fiscal year
7,958,672,721.14 4,738,029,750.00 12,696,702„471.14 i9,032,U9,6O6.44
1918
J u l y , 1918
. .
A u g u s t , 1918
September, 1918...!!
October, 1918
N o v e m b e r , 1918 . . .
D e c e m b e r , 1918
J a n u a r y , 1919..
'."..
F e b r u a r y , 1919
March 1919
April,'l919
May 1919
J u n e , 1919

1,264/797,654.44
1,526,263,223.02
1,275,114,285.27
1,175,762,260.99
1,656,299,611.23
1,671,923,855.48
1,672,100,149.83
1,044,516,601.32
1,057,461,785.51
1,019,319,698.11
917,425,614.44
754,639,949.83

343,485,000.00
279,250,000.00
282,150,000.00
489,100,000.00
278,949,697.70
389,052,000.00
290,250,800.00
145,397,302.30
322,350,000.00
409,608,608.27
194,911,857.29
54,750,000.00

1,608,282,654^44
1,805,513,223?b2
1,557,264,285.27
1,664,862,260.99
1,935,249,308.93
2,060,975,855.48
1,962,350,949.83
1,189,913,903.62
1,379,811,785.51
1,428,928,306.38
1,112,337,471.73
809,389,949.83

966,405,517.30
1,653,261,191.30
1,405,379,631.47
1,513,281,501.03
1,624,255,045.74
1,857,073,591.25
1,766,508,108.49
1,027,154,739.79
81,962,839.29
1,006,376,005.82
833,075,261.05
372,110,613.93

T o t a l for fiscal year
15,035,624,689.47 3,479,255,265. 56 18,514,879,955.03 113,362,622,818.60
1919 .
878,623,570.34
J u l y , 1919
711,521,798.39
A u e u s t 1919
565,215,630.24
S e p t e m b e r , 1919
526,194,278.58
October 1919
• 358,832,293.58
N o v e m b e r 1919
465,776,623.92
D e c e m b e r , 1919
J a n u a r y , 1920....'.'.".. 333,293,696.44
275,457,433.96
F e b r u a r y , 1920
525,540,559.40
March, 1920

70073—FI 1921-

-16




97,650,000.00
54,275,945.99
102,006,000.00
50,154,927.00
10,000,000.00
26,634,041.10
15,000,000.00
20,000,000.00
12,000,000.00

976,273,570.34
765,797,744.38
667,221,630.24
576,349,205.58
368,832,293.58
492,410,665.02
348,293,696.44
295,457,433.96
537,540,559.40

748,491,867.32
497,258,913.42
475,333,814.93
319,239,450.35
427,446,531.67
. 600,280,932.61
92,955,669.77
65,930,093.19
561,500,064.36

242

REPORT ON T H B FINANCES.
.Statement showing classified receipts, etc.— continued'.
O r d i n a r y , including special,
e x c e p t foreign
loans.

Foreign l o a n s .

Total.

$489,713,336.50
380,475,235.43
471,362, .356. 34

$15,616,114.00
15,000,000.00
3,000,000.00

$505,329,450.50
395,475,235.43
, 474,362,350.34

A p r i l , 1920...
May, 1920
Juhe, 1920...

T o t a l for fiscal year
5,982,006,813.12
1920
295,501,839.31
417,101,594.56
481,044,489. 25
426,497,372.37
426,092,313.00
404,575,091.03
388,179,272.33
351,102,030.45
519,781,297.00
494,091,189.49
368,450,545.01
469,613,958.06

J u l y , 1920
A u g u s t , 1920..
S e p t e m b e r , 1920
October, 1920
N o v e m b e r , 1920
December, 1 9 2 0 . . . . . .
J a n u a r y , 1921.
F e b r u a r y , 1921
March, 1921.
A p r i l , 1921
M a y , 1921 . .
J u n e , 1921

Deficit.

Surplus.

$188,071,130.11
137,973,860.11
$831,474,251.71

421,337,028.09 6,403,343,841.21

1291,221,547.67'

306,501,839.31
76,135,313.86
447,571,062.45
49,170; 396:77.
496,770,654.89
4 1 4 , 5 ^ , 416.92'
. 426,497,372.37 •"206,'462,'567:'40^'
426,092,313.00
150,671,500.75
404,575,091.03
527,414,306.29'
388,179,272.33 "170,'ssi ,'.023.'25'
351,102,030.45
102,538,415.67
536,476,360.91
16,695,063.91
385,151,241.81'
494,091,189.49
197,920,523.67
368,450,545.01
144,744,14^.12
469,613-, 958.06
280,403,194.06-

11,000;000.00
30,469,467.89
15,732,165.64

T o t a l for fiscal ye,ar
1921......
.
5,042,030,991.86

73,890,697.44 5,115,927,689.30

321,818,569.24
- 291,157,847.34
266,523,932.79
304,157,955.85

321,818,569.24
291,157,847.34
266,523,932.79
304,157,955.85

T o t a l J u l y I t o Oct.
1,183,658,305.22
'31, 1921

1,183,658,305.22

J u l y , 1921
A u g u s t , 1921...
S e p t e m b e r , 1921
October 1921

1509,005,271.61!
112,750,114.45
48,714,660.51
422,804,327. 29^
66,310,444.51
1195,029,107.82

RECAPITULATION.

A p r , 6, 1917, t o J u n e
30, 1917
Fiscal year 1918
Fiscal year 1919.1.
Fiscalyear 1920.:....
Fiscal year 1921
J u l y 1, 1921, t o Oct.
31, 1921
G r a n d total

648,447,921.46
330,886,628.55 885,000,000.00 1,215,886,'628.55
7,958,672,721.14 4,738,029,750.00 12,696,702,471.14 9,032,119,606.44
15,035,624,689.47 3,479,255,265.56 18,514,879,955.03 13,362,622,818.60
5,982,006,813.12 421,337,028.09 6,403,343,841.21
5,042,030,991.86
73,896, 697.44 5,115,927,689.30
1,183,658,305.22

1,183,658,305.22

291,221,547.67'
509,005,271. or
195,029,107.82'

35,532,880,149.36 9,597,518,741.09 45,130,398,890.45 122,047,934,419.40
1 Net.
RECEIPTS AND

DISBURSEMENTS.

fOn t h e basis of d a i l y T r e a s u r y statements..]
DISBURSEMENTS'.

RECEIPTS.

N e t b a l a n c e i n t h e general fund
A p r . 5, 1917
Receipts, exclusive of p r i n c i p a l
of p u b l i c d e b t , A p r . 6, 1917, to
O c t . 31, 1 9 2 1 . . . .
P u b l i c d e b t receipts A p r . 6,1917,
to Oct. 31, 1921

$92,317,710.27
23,082,464,471.05
o
74,773,164,265,43

Disbursements,
exclusive
of
p r i n c i p a l of p u b l i c d e b t , A p r .
6, ,1917, to Oct, 31, 1921
$45, 130,398,890,45"'
Public debt disbursements Apr.
6, 1917, to O c t . 31, 1921
52, 591,142,398.67"
N e t b a l a n c e i n t h e general f u n d
Oct.31,1921
226,405,157, OS-

97,947,916,446.75
PUBLIC DEBT AND
T o t a l d i s b u r s e m e n t s for w a r
• period, exclusive of p r i n c i p a l
of p u b l i c d e b t
$45,130,398,890.45
T o t a l receipts for w a r period,
exclusive of p r i n c i p a l of p u b lic d e b t ,
23,082,464,471.05
Excess of d i s b u r s e m e n t s over receipts, for w a r period
22,047,934,.419,40
D e b t decrease D e c . 31, 1920, on
a c c o u n t of fractional currencylost a n d destroyed
4,842,066,45




97,947,946,446.75EXPENDITURES,
T o t a l gross d e b t O c t . 31,1921.
T o t a l gross d e b t A p r . 5,. 1917.

$23; 459,148,496:59'
1; 281,968,696.28-

Gross d e b t increase for
period
Net balance in
the
general
fund O c t . 31, ^
1921
•
$226,405,157.63;
Net balance in
the
general •
fund A p r . 5,
1917
92,317,710, 27

•22,043,092,352. 95
N e t increase i n b a l a n c e i n general fund
Net debt
period

increase

for

134,087,447,36-

war
22,043,092,352.95.

EXHIBIT

38.

PUBLIC DEBT OF.THE UNITED STATES—KECAPITULATION OF I S S U E S AND RETIREMENTS, FISCAL YEAR ENDED
JUNE 30, 1921.
M a t u r e d d e b t on w h i c h i n t e r e s t
h a s ceased.
Detail.

Interest-bearing debt.

D e b t bearing n o
interest.
Certificates of
indebtedness.

Old d e b t .

Prewar loans.

Certificates of
indebtedness

Treasury (war)
savings securities.

Treasury notes.
Ul

Gross p u b l i c d e b t , J u n e 30,1920
N e t securities o u t s t a n d i n g J m i e 30,1920
Securities issued d u r i n g fiscal y e a r :
Upon—
Original s u b s c r i p t i o n
R e c e i p t s of lawful m o n e y
ExchangeC o u p o n for registered
• Of d e n o m i n a t i o n s
T r a n s f e r of o w n e r s h i p
Claim s e t t l e m e n t s
C u r r e n c y reissue
Total
Securities r e t i r e d d u r i n g fiscal y e a r :
A c c o u n t of r e i s s u e Exchange—
C o u n o n for registered
Of d e n o m i n a t i o n s - .
T r a n s f e r of o w n e r s h i p
Claim settlements
C u r r e n c v reissue
Total




$230, 075, 349. 91

$1,847,200. .26

$4, 900,500

$883, 549, 390

$2,768, 925, 500

230,075, 349. 91

1, 847,200. 26

4, 900,500

883,549,390

2, 768, 925, 500

o

$827, 419, 021. 36
827, 419, 021. 36

w

>

-

pi
178, 880

8; 486, 964,950

28,157, 080; 10

$311,191,600

40,186,945. 00

'

3,230,780
53,167, 840
11, 450

O
H

1, 827, 000
187,338,000

319, 324, 000. 00
359, 510, 945. 00

56, 588,950

8,676,129, 950

28,157, 080,10

311,191,600

>
Ul

•

3,230, 780

,

53,167, 840
11, 450

1, 827,000
187, 338,000

d

~^"

319, 324, 000. 00
319, 324, 000. 00

56,410, 070

189,165, 000

to
>^

CO

Public debt of the United States—Recapitulation of issues and retirements, fiscal year ended June 30, 1921—Continued,
Matured d e b t on which interest
h a s ceased.
Detail,

Old debt.

A c c o u n t of r e d e m p t i o n

P r e w a r loans.

Certificates of
indebtedness.

Treasury (war) Treasury notes.
s a v i n g s securities.

$4,755. 000

S8, 547, 461, 500

$161, 470,691. 09

151,580,00

4,755, 000

8, 547, 461, 500

161, 470, 691. 09

361,627,387.14

Securities o u t s t a n d i n g J u n e 30,1921
P l u s securities o u t s t a n d i n g ( m a t u r e d d u r i n g fiscal
year)
Less securities o u t s t a n d i n g ( m a t u r e d d u r i n g fiscal
year)

$151,580,00

42,303,387.14

T o t a l r e t i r e m e n t s (for reissue a n d r e d e m p t i o n )




Certificates of
indebtedness.

$42, 303,387.14

Total

N e t securities o u t s t a n d i n g a n d
J i m e 30,1921

Interest-bearing debt.

Debt bearing no
interest.

151,580, 00

4, 755, 000

$56,410,070

8, 736, 626, 500

161,470, 691. 09

1 227,958,907, 77

1,695,620, 26

145, 500

883, 728,270

2, 708, 428, 950

694,105,410. 37

$311,191,600

O-

9,098, 500

issuable,
227,958,907,77

1,695,620, 26

9, 244, 000

o
pi

9, 098, 500

883, 728, 270

2,699,330, 450

1 Net amount only; $152,979,025.63 gold reserve against United States notes deducted.

694,105,410. 37

311,191, 600

^:
W
>
o
Ul

Public debt of the United States—Recapitulation of issues and retirements, fiscal year ended June 30, 1921—Continued.
- Interest-bearing debt—Continued.
Liberty loans—Bonds and notes.

Detail,
First.
Gross p u b l i c d e b t , J u n e 30.1920
Less securities issuable J u n e 30,1920
Plus unadjusted item
N e t securities o u t s t a n d i n g J u n e 30,1920...-..
Securities issued d u r i n g fiscal y e a r :
Up o n Original s u b s c r i p t i o n
R e c e i p t s of lawful m o n e y
S u r r e n d e r , i n t e r i m certificates
Conversion
ExchangeRegistered for c o u p o n
C o u p o n for r e g i s t e r e d .
Of denomination.s. . _
T e m p o r a r y for pp.rTnanp.nt. ,
M u t i l a t e d for p e r f e c t . .
Coupon error
T r a n s f e r of o w n e r s h i p
Claim s e t t l e m e n t s
C u r r e n c y reissue
Total
Securities retired d u r i n g fiscal y e a r :
A c c o u n t of reissue—_
S u r r e n d e r , i n t e r i m certificates
Conversion
ExchangeRegistered for c o u p o n
C o u p o n for r e g i s t e r e d .
Of dftnominations. . _ _
^ T e m p o r a r y for p e r m a n e n t
M u t i l a t e d for p e r f e c t . .
C o u p o n error
Transfer of o w n e r s h i p . . . : . . .
Claim s e t t l e m e n t s
Currency reissue
Total




Second

Third.

Fourth.

Total.
Victory.

$1,952,458,800
25,933,400
850

$3,325,307,000
192,990,700

$3,662,715,800
10,673,300

$6,394,354,500

$4,246,365,350
585,950

1,926,526,250

3,132,316,300

3,652,042,500

6,394,354,500

4,245,779,400

Total Liberty
loans.
$19,581,201,450 $24,297,918,411.53
230,183,350.00
230; 183,350
850.00
. 850
19,351,018,950

24,067,735,911,53

23,100

8,826,515,610.10
40,186,945, 00
230,350.00
496,852,900,00

o
18, 000

5,100
230,350
52,040,000
50,747,350
72,860,150
53,102,250
1276; 951,900
8,700
50
32,165,450
29,500
538,135,700 -

267,457,250

177,355,650

230,350
496,852,900
318,745,800
952,139,550
1,209,651,450
1 7,439,161,300
172,550

318,745,800, 00
955, 370,330, 00
1,211,478,450, 00
7,439,161,300, 00
172,550, 00
1,050, 00
391, 458,640, 00
1,622,100, 00
319,324,000.00

42,036,250
161,561,400
235,520,150
11,846,165,550
38,350
1,000
23', 290,650
100,200

50,791,100
134,574,300
217,581,900
1610,718,250
33,050

101,682,950
461,483,150
351,453,900
4,705,325,600
62,100

73,488,150
121,660,550
351,993,250

24,127,400
206,450

43,562,800
1,221,550

27,806,566
52,950

150,952^800
1,610,650

2,486,069,200

1,038,032,450

5,664,797,150

842,507,000

10, 569,541,500

20,001,120,025,10

. 266,958,050

228,000
476,914,950

pi
Pi

228,000.00
478,914,950,00
318,745,800, 00'
955,370,330, 00
1,211,478,450,00
7,229,952, 700:00
172,550, 00
1,050, 00
391,458,640, 00
1,622,100.00
319,324,000, 00
10,905,268,570, 00

'

30,350

O

tn

Ul

d
228,000
47,819,700

162,137,200

50,747,350
72,860,150
53,102,250
254,937,000
8,700
50
32,165,450
29,500

42,036,250
161,561,400
235,520,150
1,668,344,600
38,350
1,000
23,290,650
100,200

50,791,100
134,574,300
217,581,900
599,977,700
33,050

101,682,950
461,483,150
351,453,900
4, 706,693,400
62,100

73,488,150
121,660,550
351,993, 250

24,127,400
206,450

43,562,800
1,221,550

27,806, 500
52,950

31S, 745, 800
952,139,550
1,209,651,450
7,229,952,700
• 172,550
1,050
150,952, 800
1,610,650

511,898,150.

2,293,029,800

1,027, 291,900

5,666,159,850

841,989,800

10,340,369,500

30,350

1 Includes permanent bonds on consignment as follows; First loan $328,400; second loan 1147,950; third loan $67,250; total $543,600.

CJX

bO

Public debt of the United States—Recapitulation of issues and retirements, fiscal year ended June 30, 1921—Continued.

'

Interest-bearing debt—Continued.
Liberty loans—Bonds a n d notes.

Detail,
. First,

A c c o u n t of r e d e m p t i o n :
Purchased t h r o u g h Sinking fund
B o n d p u r c h a s e fund
Proceeds of r o p a y m e n t of l o a n s t o foreign
Governments.
R e c e i v e d for F e d e r a l e s t a t e t a x e s
Gifts
Forfeitures
Miscellaneous receipts
Redemption.
R e i m b u r s e m e n t s t o a g e n t s for u n s o l d securities
Currency redemption

Third.

Second,

Fourth.

Total.
Victory.

$261,250,250
70,375,300
1 $200,800
700

$44,365,550
16,792,700
50
2,250

S2,145,950
16,624,000
17,000

$27,427,800
111,939,250
450
17,500
129,100

1970,450

'"i,'456'

Total Liberty
loans.

$261,250,250
70,375,300

$261,250,250.00
70,375,300. 00

73,939,300
1 26,527,200
500
38,900
129,100

73,939,300. 00
1 26,527,200, 00
500, 00
38,900.00
129,100. 00
8,712,100,043.18
1,738,727,91
42,303,387.14

201,500

8,786,950

51,160,550

39,514,100

332,597,450

432;260,550

2,301,816,750

1,078,452,450

5,705,673,950

1,174,587,250

10,772,630,050

, 3,316,568^750
99,250
147,950

3,611,622,500

6,353,477,700
1,367,800

3,913,699,150
71,200

19,147,930,400
1,561,650
543,600

23,975,184,658.40
1,561,650.00
543,600.00

11,952,257,300

1 3,316,520,050

1 3,611,555,250

1 6,354,845, 500

13,913,770,350

O

•a

20,093,671,278, 23

1,952,562,300
23,400
328,400

pi

9,188,402,708. 23

512,099,650

Total..
T o t a l r e t i r e m e n t s (for reissue a n d r e d e m p t i o n ) —

o

>

Securities o u t s t a n d i n g J u n e 3 0 , 1 9 2 1 . . .
P l u s securities issuable d u r i n g fiscal y e a r 1922
T^ess p e r m a n e n t b o n d s on c o n s i g n m e n t :
N e t securities o u t s t a n d i n g a n d issuable,
J u n e 30,1921

1 Includes items in transit on June 30, 1921, asfollows:
First loan
Second loan
Third loan
Fourthloan.
Victory loan




Total

".

67,250

:

:

:

$1,500
16,500
5,050
14,850
10, O O
G
47,000

119,148,948,450 123,976,202,708.40

•

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247

SECRETARY OE THE TREASURY.
E X H I B I T 39.

•

I S S U E S AND R E T I R E M E N T S , PREWAR LOANS MATURED
. Fiscal year ended June 30, 1921.
Outstanding
Outstanding
June 30,
during fiscal
June 30,
1920.
year.
1921.

Detail..

Funded loan of 1891, contmued at2 per cent, called for redemp
tion May 18,1900
:
..Funded loan of 1891, matured Sept. 2,1891
,Loan of 1904, matured Feb, 2 1904
Funded loan of 1907, matured July 2, 1907
Refunding certificates, matured July 1,1907
Old debt matured at various dates prior to July 1,1891
iiOan of 1908-1918.:
Total

$1,000,00
19,800,00
13,050,00
384,400,00
10,410,00
898,680,26
519,860.00
1,847,200,26

;

EXHIBIT

$3,600.00
60,00
4,720,00
143,200,00

$1,000.00
19,800.00
13,050.00
380,800,00
10,350.00
893,960.26
376,660.00

151,580,00

1,695,620,26.

40.

I S S U E S A N D R E T I R E M E N T S — D E B T B E A R I N G NO I N T E R E S T . ^
Fiscalyear ended J u n e 30, 1921.
Outstanding
June 30, 1920,

DetaiL
'Old demand notes
(United States notes... .$346,681,016,00
Less gold reserve. 152,979,025,63
"National bank notes—redemption account
.
'Fractional currency
Total

Retired.

Issued

Outstanding
June 30, 1921.

$53,012.50

$53,012.50

193,701,990.37 $319,324,000.00 $319,324,000.00

iQQ 701 qqn ^ 7

37,460,631.00
2 4,842,756.14

32,204,594.00
1,999,310.90

230,075,349.91

:

29,478,280.00
6,842,067.04

40,186,945.00
359,510,945.00

361,627,387.14

227,958,907.77

1 Figures furnished by the Treasurer of the United States.
' Includes $4,842,066,45 charged ofl—estimated to have been lost or destroyed (see public debt statement
*of December 31, 1920).

E X H I B I T 41.
I S S U E S AND R E T I R E M E N T S , P R E W A R LOANS, UNMATURED.
Fiscal year ended June 30, 1921.
Consols of 1930.
Detail.
Coupon.
$1,394,750

$599,724,050

203,000
26,739,600

26,942.600

.'

$598,329,300

203,000
26,739,600

vOutstanding June 30,1920.....'

Registered.

26,942,600

26,739.600

203,000
26,739,600

aPlus securities issued during fiscal year:
Upon—
Exchange—coupon for registered
Transfer of ownership
Total.

.

.

.

. . .

Less securities retired during fiscal year:
Upon—
Exchange—coupon for registered
Transfer of ownership
Total
^Outstanding June30,1921 . . . . . . .




^.

203,000

•<

Total.

...
...

203,000

26,739,600

26,942,600

...

1,191,750

598,532,300

599,724,050

248

REPORT ON T H E FINANCES.

Issues and retirements, prewar loans, unmatured, fiscal year ended June 30, 1921Continued.
4 p e r c e n t loan of 1925.
Detail.
Coupon.
$11,700,950

$11% 489,900

'3-, 075,000
16,708,300
50

18,783,350

:

$106,788,950

2,075,000
16,708,300
50

O u t s t a n d i n g J u n e 30, 1920

Registered,

18,783,350

16,708,300
50

2,075,000
16,708,300.
50

P l u s securities issued d u r i n g fiscal year:
Up o n E x c h a n g e — c o u p o n for registered
Transfer of o w n e r s h i p
Claim settlements
..
Total.

.

Less si3curities retired d u r i n g fiscal year:
Up o n E x c h a n g e — c o u p o n for registered
Transfer of ownership
Claim settlements

2,075,000

-

Total,

Total.

2,075,000

16,708,350

18,783,350

O u t s t a n d i n g J u n e 30 1921

9,625,950

108,863,950

118,489,900

2 per cent P a n a m a of 1916-1936.
Detail..
Coupon.
O u t s t a n d i n g .Tune 30,1920

.

$6,040

P l u s securities issued d u r i n g fiscal year:
Upon—
Transfer of ownership

Registered.
$48,948,140

Total:
S^ 8,9.54,180

2,476,240

Total
Less securities retired d u r i n g fiscal year:
Upon—
Transfer of ownership
Total

• 2 476 240

2,476,240

•
-

O u t s t a n d i n g .Tune 30,1921

2,476,240

2,476,240

..

c 476 9.40
>

2,476,240

..

•.

6,0-10

2 476 240

48,948,140

48 954 ISO

2 per c e n t P a n a m a of 1918-1938.
Detail.
'Coupon.
O u t s t a n d i n g J u u e 30, 1920...-

$111,780

Total.
$25 947 400

40 100
1 184'120

1,224,220

1 224 220

1,184,120

Total

$25,835,620

40,100
1,184,120

P l u s securities issued d u r i n g fiscal year:
Upon—
E x c h a n g e — c o u p o n for registered
'
Transfer of o w n e r s h i p

Less securities retired d u r i n g fiscal year:
Upon—
E x c h a n g e — c o u p o n for registered
Transfer of o w n e r s h i p

Registered,

40,100
1,184 120

40,100

Total

40,100

1,184,120

1 224 220

O u t s t a n d i n g J u n e 30,1921

71,680

25,875,720

25 947 400




249

SECEETAEY OF THE TEEASUEY.

lisues and retirements, prewar loans, unmatured, fiscal year ended June 30, 1921Continued.
3 per cent P a n a m a of 1961.
Detail.
Coupon.

Total.

•

Less securities retired d u r i n g fiscal year:
Upon—
E x c h a n g e — c o u p o n for registered
Transfer of o w n e r s h i p
Claim s e t t l e m e n t s -

285,500
4 421-400
' 2 000'
4,708,900

4,421,400
2,000

,

Claim s e t t l e m e n t s

$50,000,000

4,708,900

P l u s securities issued d u r i n g fiscal year:
Upon—
Exchange—coupon for registered

• $43,708,900

285,500
4,421,400
.2,000

$6,291,100

O u t s t a n d i n g J u n e 30,1920

Total

Registered.

285,500
4,421,400
2,000

.

.
. 285,506

285,500

4,423,400

4,708,900

6,005,600

Tota'.
O u t s t a n d i n g J u n e 30, 1921

43,994,400

50,000,000

2J p e r cent p o s t a l savings.
Detail.
Coupon.

Registered.

Total.

$554,880

$11,539,360'

10,440

158,440
80,080
855,580
•
9,400

178,88Q
80,080
855,580
9,40O

1,113,500

1,123,940

855,580
9,400

;

P l u s securities issued d u r i n g fiscal year:
Upon—
Original issue
E x c h a n c p — c o u n o n for resfistered

$10,984, .500

10,440

O u t s t a n d i n g J u n e 30, 1920

80 080^
855,580
9,400

.

Claim s e t t l e m e n t s
Total
Less securities retired d u r i n g fiscal year:
Upon—
E x c h a n g e — c o u p o n for registered

80,080

.

Claim s e t t l e m e n t s
:

80,080

864,980

945,060

485,220

Total
O u t s t a n d i n g J u n e 30,1921

11,233,020

11,718,240

3 p e r e 3nt conversion b o n d s .
Detail.
Coupon.
'$20,533,200

Total,

P l u s securities issued d u r i n g fiscal year:
Upon—
E x c h a n g e — c o u p o n for registered
Transfer of ownership

547,100
782,600
1,329,700

782,600

Total
Less securities retired d u r i n g fiscal year:
Up o n E x c h a n g e — c o u p o n for registered
Transfer of ownership

$28,894,500

547,100
782,600

:

$8,361,300

1,329,700

O u t s t a n d i n g J u n e 30,1920

547,100
782,600

547,100

. .
.•

547,100

Total
O u t s t a n d i n g J u n e 30,1921

Registered.

:




:

782,600

1,329,700

19,986,100

8,908,400

28,894,500

250

REPORT ON T H E FINANCES.

Issues and retirements, prewar loans, unmatured, fiscal year ended June 30, 1921Co ntinued.
Total prewar loans.
Detail.
Coupon,
Outstanding June 30,1920...,
P l u s securities issued d u r i n g fiscal year:
Upon—
Original issue.
'
E x c h a n g e - ^ c o u p o n for registered.
Transfer of. ownership
Claim' s e t t l e m e n t s
Total.
Less securities retired d u r i n g fiscal year:
Up o n E x c h a n g e — c o u p o n for registered.
Transfer of ownership
Claim s e t t l e m e n t s ,
Total
O u t s t a n d i n g J u n e 30,1921.




Registered.

$40,592,680

$842,956,710

$883,549,390

10,440

108,440
3,230,780
53,167,840
11,450

178,880
3,230,780
53,167,840
11,450

10,440

56,578,510

56,588,950

53,167,840
11,450

3,230,780
53,167,840
> 11,450

3,230,780

Ilotal,

3,230,780

53,179,290

56,410,070

37,372,340

846,355,930

883,728,270

EXHIBIT 42.

IsSulss

-

AND R E T I R E M E N T S — T R E A S U R Y (WAR) SAVINGS SECURITIES.
, Fiscal year ended June 3D, 1921.

•

Detail.

Series 1918,

Series 1920.

Series 1921.

116, 864,989.12

26, 303,276, 75

3 35,903,011,53
96, 853, 33 }

14, 718,408. 41

$13,341,830,85

2,379,13
133, 208,523, 90

14,617, 59
14,672,786,43

1,651,809. 66
10,444,078. 44

133,210,903,03

14,687, 404.02

580,17.5, 584, 02
95, 273, 993,11

Total
O u t s t a n d i n g J u n e 30, 1921 ( n e t cash receipts).
Accrued i n t e r e s t habilities ( a c t u a l a n d c o n t i n g e n t ) i

675,449,577,13

(2)

902,169,135, 72
$10, 647, 753.00

28,157,080,10

69,921, 53
1, 406,461. 41

113.00

1, 738,727, 91
159,731,963,18

12,095,888.10

1,476, 382, 94

113.00

161,470,691, 09

62,490,941. 38
6,640,184. 50

28,925,797,06
(?)

11, 865,447. 91

10,647,640.00

694,105,410, 37
101,914,177.98

'

69,131,125. 88

28,925,797, 06

11,865,447,91

10, 647,640. 00

796,019, 587.98

(2)

1 Partly estimated,
2 Figures not available for compilation of accrued interest.liabilities on series 1920 and 1921 securities outstanding.
3 Adjustment between series on account of deposits which had previously been credited in Treasurer's account in year received instead of against year ofsale.




Total,

Ul
O
Pi

;>
pi

R e t i r e d d u r i n g fiscal y e a r 1921:
R e i m b u r s e m e n t s t o a g e n t s for unsold securities
Redemptions
:
../....

T o t a l v a l u e of o u t s t a n d i n g securities J u n e 30, 1921

$26, 303,276.75

/
3 25,255,246, 04 \

•

$112, 984,503, 60
3, 880,485. 52

759,000, 869, 85

T o t a l v a l u e of o u t s t a n d m g securities J u n e 30, 1920

Thrift s t a m p s ,
unclassified
sales, e t c .

$827, 419,021, 36
2 74,750,114, 36

$688,131,241.01
70, 869, 628. 84

Securities o u t s t a n d i n g J u n e 30, 1920 ( n e t cash receipts)
Accrued i n t e r e s t liabihties ( a c t u a l a n d c o n t i n g e n t ) i . .

Issued (cash deposits) d u r i n g fiscal year 1921

Series 1919,

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E X H I B I T 43.

cn
to

I S S U E S A N D R E T I R E M E N T S — F I R S T LIBERTY LOAN OF 1932-1947.
Fiscal year ended June 30, 1921.
4's.

3i's.

4i 's.

Second c o n v e r t e d 4^'s.
.

Detail.
Interim
certificate-s.
Gross securities o u t s t a n d i n g a n d issua b l e , J u n e 30, 1920
Less securities i s s u a b l e . .
Unadjusted items, plus
N e t securities o u t s t a r i d i n g J u n e 30, 1920.

Registered.

Coupon.

Registered.

Coupon.

.$600,050

$314,585, 200

$1, 094,889.150
3,200
850

$16,566,050

$49,237,000
150,700

600,050

314, 585, 200

• 1,094,886,800

16, 566,0.50

49,086,300

Registered.

$102,061,700 . $371, 027, 500 $1,049,350
170,800
25,608, 700
101,890,900

345,418,800

144, 750

.1,100

2,350
50
1,750

79,773,500

68,289, 550

156,750

44,900

'

3,300

SOO

123,450
5,600

3,682,450
12, 000

2, 750

10, S50
100

2,590,000

31,060,300

353, 782,350

39, 050

112, 300
2, 281, 000

29,056,300
1 272,892, 900
• 2,050

228,000
6,29.5,4.50

• 41, 524, 250

51,417,200
23, 267,650

28, 250
660,000
1, 628, 950

44, 900
21., 386,600
29, 056,300
25.1, 024,9.50

2,438, 200

o

•1,926,526,250

230,350
52, 040,000
50, 747,350
72,860,150
53,102, 250,
1 276, 951,900
8,700
50
32,16a, 450
29,500
538,13.5, 700

228, 000
. 47,819,700

,
5, 770,300

144,750

44,787,400

2,442, 800

28,100

666,000
1,778,000
450

. -550

28, 348, 700
6,500

5,770, 300
21,386,600

28,250
23,267,650

Pi
fej
hj
OW

$2, 442,800 $1, 952,458,800
25 933.400
850

_
^

44,787,460
51,417, 200

Coupon.

46,058, 050

1, 049,350

230,350

Total




Coupon."

5, 981, 950

P l u s securities issued d u r i n g fiscal year:
Upon—
Surrender, i n t e r i m certificates...
Conversion
ExchangeRegistered for coupon
C o u p o n for registered
Of d e n o m i n a t i o n s
T e m p o r a r y for p e r m a n e n t . . .
M u t i l a t e d for perfect
C o u p o n error
Transfer of o w n e r s h i p .
Claim s e t t l e m e n t s

Less securities r e t i r e d d u r i n g fiscal y e a r :
A c c o u n t of r e i s s u e S u r r e n d e r , i n t e r i m certificates...
Conversion .
Exchange—
Registered for counon
C o u p o n for registered
Of d e n o m i n a t i o n s .
T e m p o r a r y for p e r m a n e n t . . .

Registered.

Total,
first l o a n .

50, 747,350
28,100 ' 72, 860,1.50
53,102, 2.^0
112; 300 1
2, 283,100 " 254,937. 060

>
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Ul

1,166

Total.

. .

A c c o u n t of r e d e m p t i o n R e c e i v e d for F e d e r a l
taxes
Forfeitures

228,000 •

-556

4b6

3,306

i, 7.50

123,4.50
5,600

800

3,682,450
12,000

2,750

10,850
100

73,143,700

74,689,000

6, 568, 700

43, 848,700

9,468,050

301,472,650

5.5,850

.

50
32,165,4.50
29,500
• 2,423, .500

511, 898,150

estate
19,100

2 181, 700

2 200,800
700

550

19,100

181, 700

201, 500

150

T o t a l r e t i r e m e n t s (reissue a n d ,
redemption)
Securities o u t s t a n d i n g J u n e 30,1921
P l u s securities issuable J u n e 30 1921
Less p e r m a n e n t b o n d s on c o n s i g n m e n t .
Securities o u t s t a n d i n g a n d issuable

550

150

Total....




8,166

2,0B6

2,350
50

28, 348, 700
6,500

M u t i l a t e d for perfect . . .
Coupon error..
.
Transfer of o w n e r s h i p
Claim s e t t l e m e n t s

228,000

73,143,700

'74,689,150

6, 568,700

43, 849,250

9,487,150

301,654,350

55, 850

2,423,500

512,099,650

372, 050

321, 215,000

1,088,487,200

10,154,100

7, 827, 050
1,650

123,470,050

397,546,800
19,6.50

1,032, 550

2,457, 500
2,100

1, 952, .562, 300
23,400

372,050

321, 215, 000

1,088,487, 200

10,154,100

7,828,700

123,470,050

2,459, 600

Ul

328,400
1,952,257,300

I Includes $328,400 permanent first 4^'s on consignment.

328,400
397,238,050

•

1,032, 5.50

2 Includes $1,500 in transit on June 30, 1921,

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CO

254

REPORT ON THE FINANCES.
EXHIBIT

44.

I S S U E S A N D ^ R E T I R E M E N T S — S E C O N D LIBERTY LOAN OF 1 9 2 ? - l 9 4 2 .
Fiscalyear ended June 30, 1921.
Second Liberty Loan of 1927-1942.
Detail.

4's.
Registered.

Total, second
loan,

4i's. ^
Coupon.

Registered.

Coupon.

Gross securities outstanding and issuable, June 30, 1920 . . .
$65, 896, 250 $174,107,000 $529, 072, 400 $2, 556, 231,350 $3,325,307, O O
U
727, 250
Less securities issuable
191, 959, 800
192,990, 700
303,650
-2,050
-3,050
Unadjusted items. .•
ipius
-f 5,100
Net securities outstanding June 30,
1920 .
Plus securities issued during fiscal
year:
Upon—
f Conversion
;
0 ExchangeRegistered for coupon...
Coupon for registered....
Of denominations
Temporary for permanent
...
Mutilated for perfect
Coupon error
Transfer of ownership
Claim settlements

65, 901, 350 173,803,350

22, 383,100
115; 150
1,900

863,100
4,000,450
7,151, 800
9,200

186, 050
29, 050

11,650

332,150

Total

528, 343,100

12,036,200

Less securities retired during fiscal
year:
Account of reissueConversion
25,157, 250 136, 979, 950
ExchangeRegistered for coupon . .
863,100
Coupon for registered..
115,150
Of denominations
4,000, 450
Temporary for perma6, 850, 800
. nent
Mutilated for perfect
1,900
9,200
• Coupon error
Transfer of ownership
186, 050
29,050
11, 650
Claim settlements
26, 237,350 147, 967, 200
Total
Account of redemptionProceeds of repayment of
loans to foreign Governments
Received for Federal estate
taxes..
Forfeitures

161, 446, 250'

2,364,268,500

3,132, 310, 300

154, 972, 550

177,355, 650

. 41,173,150

42, 036, 250
161, .561, 400
235, 520,150

. 231, 519, 700

11, 839,013, 750 11, 846,165, 550
38, 350
24, 550
1,000
1,000
23,104,600
23, 290,650
52, 200
7, 300
100, 200
2,700

206, 988, 850

2, 266,712,000

2, 486,069,200

162,137, 200
41,173,150

161, 446, 250
231, 519, 700

42, 036, 250
161, 561,400
235. .520.1.50

23,104,600
52, 200

1,661,493,800 1,668,344,600
24,550 1
38,350
1,000
1. 000
23,290,650
100, 200
7,300

64, 332, 650

2,054, 492,600

2,700

2, 293, 029, 800

'
2, 050, 850

2,145, 950

1,000

2 5, 219, 250
15, 500

2 6, 624, 000
17, 000

1,000

Total

95,100
1, 404, 750
500
1. .500. 350 •

7, 285,600

8,786, 950

Total retirements (reissue
26, 237,350 147, 968, 200
and redemption)

65, 833,000

2,061,778, 200 2,301, 816,750

Securities outstanding June 30, 1921. 39, 996,150
Plus securities issuable June 30, 1921

37, 871, 350 669, 498,950
2,650

2, 569,202,300
96,600

3, 316, 568,750
99,250

Less permanent bonds on consignment
Securities outstanding and issuable.. 39, 996,150

147, 950
37, 874,000 669,498, 950 2, 569,150,950

147,950
3, 316, 520,050




1 Includes $147,950 permanent second 4J's on consignment.
2 Includes $16,500 in transit on June 30, 1921.

'

.

SECRETARY OF T H E TREASURY. .
.EXHIBIT

255

45.

I S S U E S AND R E T I R E M E N T S — T H I R D L I B E R T Y LOAN OF 1928,
Fiscalyear ended June 30, 1921.
Detail.

Registered.

Gross securities outstanding and issuable Jmie 30, 1920..
Less securities issuable

$3,662,7]5,.800
.10,673,300

2, 922,753, 550

3,652, 042, 500

. 729,288,950

Plus securities issued during fiscal year:
Upon—
ExchangeRegistered for coupon ;•
Coupon for registered.
Of denoininations
Temporary for permanent.
Mutilated for perfect
Transfer of ownership
.
Claim settlements

134, 574,300

„

13,300
24,127, 400
119,150

Total

158, 834,150

Total. . . . : . . .

Total.

$729, 288,950 $2,933,426,850
10, 673,300

Net securities outstanding June 30, 1920

Less securities retired during fiscal year:
Account of reissueExchange—
Registered for couponCoupon for registered
Of denoininations
Temporary for permanent
Mutilated for perfect.. .
.
Transfer of ownership
Claim settlements.

Coupon.

50, 791,100

.

•
....

• '. •

Account of redemption—
Proceeds of repayment of loans to foreign Governments. .
".
Received for Federal estate taxes
Gifts
Forfeitures
..

50, 791,100
217, 581, 900
1610,718,250
19, 750
87, 300

50, 791,100
134, 574, 300
217, 581, 900
1610, 718, 250'
33, 050 •
24,127, 400
206,450'

879,198, 300

1,038,032,450^

134, 574, 300
217, 581,900
599,977, 700
19,750
87,300

50, 791,100'
134, 574, 300
' 217,581,900
599, 977, 700-'
33,050
24,127,400'
206 450'

75, 050, 950

952, 240, 950

1, 027, 291, 900^

10, 371,900
848, 500

33, 993,650
2 5, 944, 200
50
1, 750

44, 365, 5502 6, 792, 700
50^
2,250

13,300
24,127,400
119,150

500

Total. . .

11,220, 900

39, 939,650

51,160,550'

Total retirements (reissue and redemption),..

86, 271,850-

992,180,600

1, 078,452,450

801, 851, 250

2, 809, 771,250
67,250
2,809, 704,000

3,611,622,500'
67, 250
3,611, 555,250

Securities outstanding June 30, 1921
Less permanent bonds on consignment.
Securities outstanding and issuable

801, 851, 250

• 1 Includes $67,250 permanent third 4^'s on consignment,
2 Includes $5,050 in transit on June 30, 1921,




256

.

REPORT ON T H E FINANCES.
EXHIBIT

46.

I S S U E S AND RETIREMENTS—FOURTH L I B E R T Y LOAN OF 1933-1938.
Fiscal year ended June 30, 1921.
Registered.

Coupon.

$1,086,087,600

$5,308,266,900

Detail.
N e t securities o u t s t a n d i n g J u n e 30 1920
:P1US securities issued d u r i n g fiscal 3"ear:
Upon—
"
,
Original s u b s c r i p t i o n
Exchange—
Registered for c o u p o n
C o u p o n for r e g i s t e r e d .
0 f denominations
T e m p o r a r y for p e r m a n e n t
M u t i l a t e d for perfect
Transfer of o w n e r s h i p
Claim s e t t l e m e n t s
..
Total

$6,394,354,500

5,100

.

1,088,000

101,682,950
461,483,150
• 3.51,453,900
4,705,325,600
62 100
43,562,800
1,221 550

5,159,582,950

.5,664,797,150

46i,483.i50
351,453,900
4,706,693,400
27,400

461,483,150
351,453,900
4,705,325,600
27,400

34,700
43,562,800
133,550
.

5,100

101,682,950

:

505,214,200

.

L e s s securities retired d u r i n g fiscal year:
A c c o u n t of r e i s s u e Exchange— •
Registered for coupon
' Coupon for r e g i s t e r e d .
Of d e n o m i n a t i o n s
T e m p o r a r y for p e r m a n e n t . . . .
M u t i l a t e d for perfect
Transfer of o vvnership
•
Claim s e t t l e m e n t s
.
.
i

101,682,950

.

A c c o u n t of r e d e m p t i o n Proceeds of r e p a y m e n t of loans to foreign Governments
R e c e i v e d for F e d e r a l e s t a t e t a x e s
Gifts
Forfeitures
.
Miscellaneous receipts

1,088,000

101,682,950
461,483,150
351,453,900
4,706,693,400
62,100
• 43,562,800
1 221 550

5,520,745,850

5 666 159 850

27,427,800
1 10,958,100
450
17,500
129,100

34,700
43,562,800
133,550

27,427,800
111,939,250
450
17,500
129,100

>

145,414,000

Total

981,150

981,150

Total
T o t a l r e t i r e m e n t s (reissue a n d r e d e m p t i o n ) . . . Securities o u t s t a n d i n g J u n e 30,1921
P l u s securities issuable J u n e 30, 1921
Securities o u t s t a n d i n g a n d issuable




Total.

^

38,532,950

39,514,100

146,395,150

5,559,278,800

5,705,673,950

1,4^14,906,650

4,908,571,050
1,367,800

6,353,477,700
1,367,800

1,444,906,650

4,909,938,^50

6,354,845,500

' Includes $14,850 in transit ®n June"30, 1921.

SECRETARY OF THE
EXHIBIT
ISSUES AND

257

TREASITRY.
47.

RETIREMENTS—VICTORY

LIBERTY

LOAN

OF

1922-

1923.
Fiscal year ended June 30, 1921.
41 p e r c e n t .

3£- p e r c e n t .
T o t a l Vic• tory loan.

Detail,
Registered.

Coupon.

Registered,

Coupon,

Gross securities o u t s t a n d i n g a n d is$586,868,850 1 $2,841,100,850 $84,237,150 $734,158,500 $4,246,365,350
s u a b l e J u n e 30,1920
5,900
545,000
35,050
Less securities issuable
585,950
N e t securities
J u n e 30 1920

outstanding
586,862,950

P l u s securities issued d u r i n g fiscal
J^ear:
. Upon—
Original s u b s c r i p t i o n
1,129,750
Conversion. .
ExchangeRegistered for c o u p o n
Coupon for r e g i s t e r e d . . 111,602,100
Of d e n o m i n a t i o n s
M u t i l a t e d for perfect. .
9,050
Transfer of o w n e r s h i p
22,133,600
54,400
Claim s e t t l e m e n t s . . .

2,840,555,850

84,237,150

734,123,450

4,245,779,400

18,000
194,046,250

948,000

71,333,250

18 000
267 457*250

62,689,400

10,798,750
10,058,450

289,548,7.50
15,700

62,444,500

73 488 150
121 660 550
351'993'250
30 350
27,806; 500
52,950

5,600
5,672,900
-5,000

134,928,900

546,321,650

16,679,950

144,576,500"

842,507,000

554,000

Total

3,550

71,692,200

9,749,200

184,962,650

266,958,050

Less securities retired d u r i n g fiscal
year:
A c c o u n t of reissue—
ExchangeRegistered for c o u p o n . .
Coupon for r e g i s t e r e d . .
Of d e n o m i n a t i o n s . . .
M u t i l a t e d for p e r f e c t . . .
Transfer of o w n e r s h i p . . . .
Claim s e t t l e m e n t s

62,689,400
9,050
22,133,600
54,400

10,798,750
111,602,100
289,548,750
15,700
3,5.50

5,600
.5,672,900
-5,000

73,488,150
121,660,550
351,993,250
30,350
27 806 500
52,950

10,058,450
62,444,500

85,440,450

Total
A c c o u n t of r e d e m p t i o n —
Sinkine: fund
B o n d - p u r c h a s e fund
R e c e i v e d for F e d e r a l e s t a t e

472,862,300

26,221,450 257,465,600

841,989 800

5,3757300

212,100,250
59,148,000

49,150,000
5,852,000

261,250,250
70,375,300

42,150

Forfeitures
5,417,450

Total
T o t a l r e t i r e m e n t s (reissue
and redemption)

3 928,300
1,450

a 970 450
1,450

'
55,002,000

272,178,000

332,597,450

90,857,900

745,040,300

26,221,450

312,467,600

1,174,587,250

Securities o u t s t a n d i n g J u n e 30,1921. 630,933,950
P l u s securities issuable J u n e 30,
1921

2,641,837,200

74,695,650

566,232,350

3,913,699,150

Securities o u t s t a n d i n g a n d i s s u a b l e . 630,933,950'

2,641,908,400

74,-695,650

566,232,350

3,913,770,350

71,200

71 200

1 Includes $15,550 in excess of amount shown in annual report for fiscal year ending Jime 30,1920, which
amount could not then be classified,
2 Includes $10,000 in transit on June 30, 1921.

70073—FI 1921-




-17

EXHIBIT

to
cn

48.

00

LIBERTY

BONDS AND

VICTORY NOTES.

Recapitulation of denominational exchanges showing net increases and decreases from Apr. 6, 1917, to June 30, 1921.
Detail.

First 3i's.

First 4's.

First
First 4i's. second 4i's. Second 4's.

Original deliveries (including those on conversion):
SlOO, 034, 350 $98,935,000 $59,318,650
$50
$100
122, 321,200 124,104, 700 97,270,100
$500
97, 747, 000 84, 207,000 76,871,000
$1,000
"949, 284, 000 164,524,000 179,751,000
13, 045,000 19,040,000
$5,000
13,460,000 19,320,000
$10,000
:
Total.

1,269,386,550 498,275,700 451, 570,750

Second 4J's,

Third 4i's,

Fourth 4i's, Victory 4|'s,

Victory
3|'s.

Total.

$601,050 $2, 861,322, 850"
$297,200 $383,289,600 $237,173,600 $701,956,600 $864, 615, 800 $415,101, 000
1, 604,100 3,450, 855, 800
399,300 •444, 724,000 348,416, 300 720,302,600 1, 025,791, 800 56.5,921, 700
3,157,000 2,124,952,000.
259, 500 329,212, 000 281, 883, 500 379, 896, 500 519,188, 000 352, 530, 500
1,222,000 1,591,870,000 1, 510,276, 000 1,384, 390, 000 2, 384,269,000 1, 308, 080, 000 346, 554,000 9, 820,220,000
257, 555, 000 54, 985,000 1,498, 210, 000
239, 585, 000 258,120, 000 206,125, 000 449,650,000
105,000
486, 330, 000 233,220, 000 3,216,310, 000
460, 590,000 550,170, 000 408,610, 000 1, 044,450,000
160,000

Pi
fej
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O

2,443,000 3,449, 270,600 3,186,039, 400 3,801,280,700 6, 287,964,600 3, 385, 518, 200 640,121,150 22,971,870, 650

i^

n
o

Surrendered for denominational exchange:
$50
$100
$500
$1,000
$5,000
$10,000
Total.

H

461,646, 550
406, 740,100
86, 569, 500
460,654, 000
151, 270,000
346,900, 000

22, 282,350
15, 805,600
2,408,000
4, 021,000
2, 585,000
2,600,000

12,194,000
16,561,400
7,323,000
15, 835, 000.
3,685,000
3,640,000

70,200
102,300
17, 500
18, 000
20,000
40,000

103,938,450
86, 233, 900
24,685,000
41,152,000
49,960, 000
69, 690,000

74,108, 350
79,477, 800
30,605, 000
190,771, 000
72, 315,000
133,060, 000

146,078,100

49, 701,950

59,238,400

268,000

375,659, 350

580,337,150 1,224, 842, 300 1,913,780,150

10,
5,
13,
116,

718,100
547, 500
233, 500
579, 000

3, 858,750
2,908,700
4, 672, 500
35, 067,000
1, 975,000
1, 220,000

1,090,600
1,910, 800
5, 501,000
33,186, 000
6, 380,000
11,170,000

800
700
71,500
175,000

27,
28,
28,
201,
37,
51,

13,632,350
16,770,300
27, 349, 500
295, 250,000
55,035,000
172, 300,000

146,078,100

49, 701,950

59, 238,400

268,000

375,659,350

43,058, 500
47,101,000

18,423,600
12, 896,900

11,103,400
14,650,600

69,400
101,600

75, 939,400
57, 488,100

53, 776,600
52, 648, 500
27,779,000
11,874,000

361,639,600
265, 945, 200
61, 078, 500
283, 3,59,000
88, 310, 000
164, 510, 000

205,
192,
49,
200,
79,
129,

788, 350
943, 700
524, 500
793,000
255, 000
350, 000

•352,650 1,295, 797,100
956,100 1,117, 414, 600
291,447, 500
1,457,'500
86, 844,000 1, 295, 321,000
18,695,000 . 466,095, 000
935,630, 000
85, 840,000

857,654, 550 194,145,250

5,401,705, 200

44,
35,
46,
485,
70,
175,

82,450
235,300
624,500
95, 758,000
15, 265,000
82,180,000

248,890,900
197,912, 300
249, 809,000
3,084, 578, 000
433,255,000
1,187,260,000

Total.
Decrease on d e n o m i n a t i o n a l
exchange:
$50
$100

857,654, 550 194,145, 250

5,401,705,200

161,491, 500
157, 047,500

1,046,906,200
. 919,503,000




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•

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Ul

Issued on denominational
exchange:
;
$50
$100
$500
$1,000
$5,000
$10,000

W

20,000

999,050
745,800
296,500
723,000
055,000
840,000

79,672,950
67, 539, 00070,166,700
35, 730, 300
47,221, 000 . 76,623, 500
731, 877, 000 1, 089,472, 000
154,415,000
92, 745,000
443,430, 000
249, 730, 000

580, 337,150 1,224,842,300 1, 913, 780,150

60,476,000
62,707,600

294,100,600
230,214,900

381,973,600
336,573,400

296, 850
896, 200
215, 500
491, 000
385,000
370, 000

270, 200
721,400

$500
$1,000 .
$5,000
$10,000

14,545,500

Total

104,705,000

20, 000
20,000

12,970,000
19,270,000

3,255,500
22, 721,000
17,280,000
26,950,000

13, 857, 500
2, 297,000
3; 880, 000

. 9,949, 500
16, 524, 000
3, 070,000

3,309,000.
1,201,000
9,000,000

211, 000

165, 705, 500

193,390,100

544, 350,000

748, 090,500

66,190,000

450,815,000
8,315, 000
85, .220, 000

193,390,100

544, 350,000

38,000

1, 822,000
615, 000
1, 380, 000
33,315, 500

27, 576, 000

Total




47,610,000
42, 743,000
50 265 000
51,280,000

332, 049,000

8,914,600

2,158,307,200

600
3,500
645, 342,000
6,215,000
96, 530,000

285, 899,000
130, 000
46,020,000

8,914,000

700
5,971,500
1,832,000,000
17,425,000
302,910,000

748,090, 500

332, 049, 000

8, 914,600

2,158,307,200

833,000

•

Increase on denominational
exchange:
$50
$100
$500..
$1 000
$5,000 .
$10,000

3,430,000
3,660,000

•
100
104, 705, 000

2,26.4,500
31,046,000
5,000

104, 705, 000

33,315, 500

17,351,000
2,695,000
7,530,000
27, 576,000

54,000
157, 000

3,649,500
160, 571, 000
65, 000
1, 420,000

211, 000

165, 705, 500

127,200,000

Ul

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H

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td
X

Cn

260

REPORT ON THE FINANCES.
EXHIBIT

CONVERSION TRANSACTIONS—NOV.

49.
15, 1917,

TO J U N E 3 0 ,

1921.

LIBERTY BONDS AND VICTORY NOTES.
First Liberty loan converted 4 per cent bonds of 1932-1947, Nov, 15,
1917-May 15, 1918:
Surrendered for conversion—
•
First 3^- per cent interim certificates
$473, 917, 250
First 3 | per cent coupon boiids
, 89,103, 500
First ^ per cent registered bonds
5, 297, 700
Total

568,318, 450.

Issued upon conversion—
First converted 4 per cent coupon bonds
First converted 4 per cent registered bonds

\

Total

498, 275, 700
70,042, 750
568, 318, 450

First Liberty loan converted 4^ per cent bonds of 1932-1947, as of June
30,1921:
Surrendered for conversion—
First 3^ per cent coupon bonds
First 3 | per cent registered bonds
First converted 4 per cent coupon bonds
First converted 4 per cent registered bonds.
Total

'

542, ^87, 650

Issued upon conversion—
First converted 4^ per cent coupon bonds
First converted 4 | per cent registered bonds
Total

451, 590, 400
.90, 797, 250
.'

542, 387, 650

First Liberty loan second converted 4} per cent bonds of 1932-1947, Oct,
24, 1918-Apr. 24, 1919:
Surrendered for conversion—
First 3^ per cent coupon bonds
First 3 | per cent registered bonds
Total

:..

Issued upon conversion—
xFirst second converted 4^ per cent coupon bonds
First second converted 4^ per cent registered bonds
Total

6,115, 750
1,454, 800
470, 928, 050
63, 889,050

-

2, 900, 650
591, 500
3, 492,150
2, 443, 000
1, 049,150
3, 492,150

Second Liberty loan converted 4} per cent bonds of 1927-1942, as of
J u n e 30, 1921:
Surrendered for conversion—
Second 4 per cent temporary coupon bonds
3, 270, 415, 350
Second 4 per cent permanent coupon bonds
17, 596, 000
Second 4 per cent registered bonds
^ 362, 924, 800'
^
Total

'

Issued upon conversion—
Second 4J per cent temporary coupon bonds
Second 4 | per cent permanent coupon bonds
Second 4} per cent registered bonds.
otai




3, 650, 936,150
2, 737, 424, 450
448, 711, 550
464, 800,150
3, 650, 936,150

SECRETARY OF THE TREASURY.

.261

Victory Liberty loan 4 | per cent notes of 1922-1923, as of June 30, 1921:
Surrendered for conversion—
Victory 3f per cent coupon notes
|281, 900, 850^
Victory 3f per cent registered notes
11, 210, 400
Total

,

293, 111, 250

Issued upoii conversion—
Victory 4 | per cent coupon notes
Victory 4 | per cent registered notes

:

Total

293,111,250

Victory Liberty loan 3 | per cent notes of 1922-1923, as of June 30,1921:
Surrendered for conversion—
Victory 4 | per cent coupon notes
Victory 4 | per cent registered notes
Total

:

Issued upon conversion—
Victory 3 | per cent coupon notes. . .
Victofry 3 | per cent registered notes
Total




290, 817, 200
" 2, 294, 050

403, 588, 600
2, 079,550
405, 668,150
402, 498, 350
3,169, 800

..,*

405,668,150

EXHIBIT

to

50.

LIBERTY LOANS OUTSTANDING, BY DENOMINATIONS, J U N E 30, 1921.

Number
of pieces:

Amount,

$1,000

$500

$100

$50

Number
of pieces. ^ Amount.

Number
of pieces.

Amount.

Number
of pieces.

$5,000
Amomit.

Total

:

First 4's:
Temporary coupon bonds
Permanent coupon bonds
Registered bon Ss
Total
First 4J's:
Temporary coupon bonds
Permanent coupon bonds ..
Permanent coupon bonds issuable account conversion
Registered bonds
Total
First Second 4i's:
Temporary coupon bonds
Permanent coupon bonds
Registered bon3.s
Total
Total first loan




Amount.

•

FIEST LIBERTY LOAN.

First 3i's:
Coupon bonds ..
Coupon bonds deliverable in lieu of interim certificates outstanding ..
Registered bonds

Number
of pieces.

•

Pi
fej

946,242 $946,242,000

771,556

$38,577,800

487,964

$48,796,400

109,742

$54,871,000

2,185

109,250

1,223
35,520

122,300
• 3,552,000

69
7,766

34,500
8,883,000

106
.19,615

106,000
19,615,000

4,841

$24,205,000

773,741

38,687,050

524,707

52,470,700

117,577

58,788,500

965,963

965,963,000

4,841

24,205,000

54,512
8,781
5,238

2,725,600
439,050
261,900

19,360
5,739
27,762

1,936,000
573,900
2,776,200

899
570
. 4,380

449,500
285,000
2,190,000

723
600
3,201

723,000
600,000
3,201,000

3
4
133

15,000
20,000
665,000

68,531

3,426,550

52,861

5,286,100

5,849

2,924,500

4,524

4,524,000

140

700,000

21,399
811,703

1,069,950
40,585,150

13,437
739,125

1,343,700
73,912,500

1,435
125,494

717,500
62,747,000

1,094
159,002

1,094,000
159,002,000

10
5,305

50,000
26,525,000

171
35,935

8,550
1,796,750

101
113,978

10,100
11,397,800

1,000
17,794,500

38,921

38,921,000

3,196

15,980,000

869,208

43,460,400

866,641

86,664,100

2
35,589
162,520

81,260,000

199,017

199,017,000

8,511

42,555,000

732
2,816
575

36,600
140,800
28,750

410
2,351
1,183

41,000
235,100
118,300

48
528
309

24,000
- 264,000
154,500

42
1,274
351

42,000
1,274,000
351,000

36
30

180,000
150,000

1,667

1,667,000.

66

330,000

1,171,171 1,171,171,000

13,558

67,790,000

4,123

206,150

3,944

394,400

885

442,500

1,715,603

85,780,150

1,448,153

144,815,300

286,831

143,415,500

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SECOND LIBERTY LOAN.
Second 4's:
Temporary coupon bonds
Permanent coupon bonds
Registered bonds

211,774
41,639
50,233

73,583
28,154
82,145

7,358,300
2,815,400
8,214,500

3,^945
3,145
13,666

1,972,500
1,572,500
6,833,000

2,712
6,235
11,192

2,712,000
6,235,000
11,192,ooq

39
154
731

195,000
770,000
3,655,000

303,646

Total
Second 4i's:
Temporary coupon bonds
Permanent coupon bonds
Permanent coupon bonds issuable account conversion
Registered bonds
i

10,588,700
2,081,950
2,511,650
15,182,300

183,882

18,388,200

20,756

10,378,000

20,139

20,139,000

924

4,620,000

98,504
2,801,254

4,925,200
140,062,700

50,404
2,472,050

.5,040,400
247,205,000

4,761
456,245

2,380,500
228,122,500

5,909,000
5,909
1,061,932 1,061,932,000

141
50,354

705,000
251,770,000

686
140,651

34,300
7,032,550

393
333,159

39,300
33,315,900

32
108,283

16,000
54,141,500

7
143,899

7,000
143,899,000

13,936

69,680,000

Total

3,041,095

152,054,750.

2,856,006

285,600,600

569, .321

284,660,500

1,211,747 1,211,747,000

64,431

322,155,000

Total second loan

3,344,741

167,237,050

3,039,888

303,988,800

590,077

295,038,500

1,231,888 1,231,886,000

65,355

326,775,000

TfflRD LIBERTY' LOAN.

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Tliird 4J's:
Temporary coupon bonds
Permanent coupon bonds
Registered bonds

5,783,500
289,399,500
83,648,500

7,668,000
7,668
1,097,505 1,097,505,000
169,978,000
169,978

469,195,300

757,663

378,831,500

1,275,151 1,275,151,000

"53,701

731,752
4,706,576
1,110,831

73,175,200
470,657,600
111,083,100

.55,097
771,120
250,348

27,548,500
385,560,000
125,174,000

55,877
55,877,000
1,735,085 1,735,085,000
294,307
294,307,000-

1,348
.95,157
24,219

6,740,000
475,785,000
121,095,000

339,960,300

6,549,159

654,915,900

1,076,565

538,282,500

2,085,269 2,085,269,000

120,724

• 603,620,000

1 . 162,919

4,785,068

239,253,400
8,145,950

3,877,128
582,100

387,712,800
58,210,000

601,956
177,352

300,978,000
88,676,000

1,126,803 1,126,803,000
221,722
221,722,000'

38,040
- 13,046

190,200,000
65,230,000

4,947,987

247,399,350

4,459,228

445,922,800

779,308

389,654,000

1,348,525 1,348,525,000

51,086

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268,505,000

255,430,000

31,019,700
238,974,150
17,015,850

213,935
3,771,429
, 706,589

21,393,500
377,142,900
70,658,900'

1 5,740,194

Total third loan

685,000
206,590,000
61,230,000

11,567
578,799
" 167,297

620,394
4,779,483
340,317

287,009,700

4,691,953

1,402,465
4,905,590
491,151

70,123,250
245,279,500
24,557,550

1 6,799,206

137
41,318 .
12,246

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Fourth 4J's:
Temporary coupon bonds
Permanent coupon bonds
Registered bonds
Total fourth loan

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VICTORY L I B E R T Y L O A N .

Victory 4J's:
Coupon notes
Registered notes
Total




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Liberty loans outstanding, by denominations, June 30, 1921—Continued.

'

$50
Number
of pieces.

$100
Amount.

Number
of pieces.

$500

Amount.

to
$1,000

$5,000

Number
of pieces.

Amoimt. .

Number
of pieces.

4,378
177

$2,189,000
88,500

273,359
1,983

$273,359,000
1,983,000

9,195
879

$45,975,000
4,395,000

4,555

2,277,500

275,342

275,342,000

10,074

50,370,000

1,623,867 1,623,867,000

61,160

305,800,000

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8,390,000
1,197,815,000

O

Amount.

Number
of pieces.

Amount.

VICTORY LIBERTY LOAN—Continued.
Victory 3|'s:
Coupon notes
Registered notes
Total ..

6,069
• 105
^ .

Total Victory loan.
Total of aU loans:
Temporary coupon bonds
Permanent coupon bonds and notes
Total
Registered bonds and notes
Total of all loans




$303,450
5,250

7,659
339

$765,900
33,900

6,174

.308,700

7,998

799,800

4,954,161

247,708,050

4,467,226

446,722,600

2,409,780
18,913,959

120,489,000
945,697,950

1,102,881 110,288,100
16,098,175 1,609,817,500

77,752
38,876,000
2,651,977 1,325,988,500

74,025
74,025,000
6,408,037 6,408,037,000

1,678
239,563

21,323,739 1,066,186,950
1,227,124
61,356,200

17,201,056 1,720,105,600
299,360,600
2,993,606

2,729,729 1,364,864,500
765,167 382,583,500

6,482,062 6,482,062,000
905,169 905,169,000

241,241 1,206,205,000
73,267
366,285,000

22,550,863 1,127,543,150 20,194,662 2,019,466,200

3,494,896 1,747,448,000

7,387,231 7,387,231,000

314,498

.

783,863

391,931,500-

1,572,490,000

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Liberty loans outstanding, by denominations, June 30, 1921—Continued.
$10,000
Number
of pieces.

$50,000

Amount.

Number
of pieces.

Total.

$100,000

Amount.

Numbei
of pieces.

Amomit,

Number
of pieces.

Amount.

FIRST LIBERTY LOAN.

First 3Vs:
Coupon bonds...Coupon bonds deliverable in lieu of interim certificates outstanding
Registered bonds
Total

2,315,504
9,181

$91,810,000

1,165
1,165

First 4i's:
Temporary coupon bonds
• Permanent coupon bonds
Permanent coupon bonds issuable account conversion
Permanent coupon bonds delivered on consignment account temporary-permanent exchange (denominations unavaUable)
Registered bonds .

$119,900,000

372,050
321,215,000

860,000

4

920,000

4

•3,050

1,410,074,2.50

200,000

40,804
132,001

17,982,800
4,275,150
393,271,650
19,650

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1,650
10,154,100

200,000

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5,849,100
1,977,950

60,000

86

2,398,374

' 37,375
1,843,679
274

6

92

Total

91,810,000

58,250,000

1,199

75,497
15,700

9,181

First 4's:
Temporary coupon bonds
Permanent coupon bonds
Permanent coupon- bonds issuable account temporarypermanent exchange (denominations unavailable)
Registered bonds

$58,250,000

$1,088,487,200

3,583
79,287

30,500,000

1,199

119,900,000

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19,130,000

151

7,550,666

109

10,900,000

229,792

-328,400
123,470,050

. . . .

4,963

49,630,000

151

7,550,000

109

10,900,000

2, 111, 120

520,708,100

First second 4i's:
Temporary coupon bonds
-.
Permanent coupon bonds
Permanent coupon bonds issuable account temporary-per-

22

220,000

1,232
7,027

143,600
2,313,900

2,471

d
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2,100
1,032,550

Total

.

.

-

Tnanp.nt p.-XT>.hq.ngft (dennminat.ionsimava11a.blP.)

Registered bonds
Total
Total first loan




23

230,000

45

450,000

14,281

142,810,000

10,730
1,320

66,000,000

1,308 i

130.800 ono

3,492,150

4,652,225

1,952,257,300

to

Liberty loans outstanding, hy denominations, June 30, 1921—Continued,
$10,000
Number
of pieces.

Number
of pieces.

Total.

• $100,000

$50,000

Amount. .

to

Amount.

" Number
of pieces.

Amount.

Nmnber
of pieces.

Amount.

SECOND LIBERTY LOAN,

Second 4's:
Temporary coupon bonds
Permanent coupon bonds
Permanent coupon bonds issuable account temporarypermanent exchange (denominations unavailable)
Registered bonds

1
156

$10,000
1,560,000

459

. 4,590,000

52

$2,600,000

4

$400,000

616

6,160,000

52-

2,600,000

4

400,000

44
62,071

440,000
620,710,000

12,513

125,130,000

1,016

50, 800,000

Total

74,628

746,280,000

1,016

50,800,000

Total second loan

75,244

752,440,000

1,068

53,400,000

• 67
53,294

670,000
532,940,000

• i6,997

109,970,000

971

48,550,000

2,408 •

64,358

643,580,000

971

48,550,000

2,408

557
135,717

. 5,570,000
1,357,170,000

Total
Second 4i's:
Temporary coupon bonds
Permanent coupon bonds
Permanent coupon bonds issuable account conversion
Permanent coupon bonds delivered on consignment account temporary-permanent exchange (denominations
unavailable)
Registered bonds

292,054
79,483

$22,836,500
15,034,850

158,482

2,650
39,996,150

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77,870,150

O

159,763
6,903,906
1,118

19,400,100
2,549,802,200
96,600.

i,855

755,312

—147,950
669,498,950

1,855

185,500,000

7,820,099

185,900,000

8,350,118

3,316,520,050

67,219,700
2,742,551,550

240,800,000

1,410,803

-67,250
801,851,250

Total third loan

240,800,000

12,586,399

3,611,555,250

2,247,096
12,349,245

239,033,950
4,669,537,100

F O U R T H LIBERTY LOAN,

Fourth 4i's:
Temporary coupon bonds..
Permanent coupon bonds




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THIRD LIBERTY LOAN,

Third 4i's:
Temporary coupon bonds
Permanent coupon bonds
Permanent coupon bonds delivered on consignjnent account temporary-permanent exchange (denominations
unavailable)
Registered bonds

o'

3,238,649,900

1,859

•853,768
10,321,828

.

185,500,000

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P e r m a n e n t c o u p o n b o n d s issuable a c c o u n t t e m p o r a r y p e r m a n e n t exchange (denominations unavailable)
Registered b o n d s
i

222,090,000

1,612

80,600,000

4,660

466,000,000

2,199,337

1,367,800
1,444,906,650

158,483

1,584,830,000

1,612

80,600,000

4,660

466,000,000

16,795,678

6,354,845,500

39,689

396,890,000

10,468,684

2,641,837,200

7,450

74, 500,000

685

34,250,000

802

80,200,000

1,166,076

71,200
630,933,950

47,139

471,390,000

685

34,250,000

802

80,200,000

11,634,760

3,272,842,350

24,364
1,639

243,640,000
16,390,000

130

6,500,000

453

45,300,000

325,024
5,705

566,232,350
74,695,650

26,003

260,030,000

130

6,500,000

453

45,300,000

330,729

640,928,000

73,142

T o t a l fourth l o a n

22,209

731,420,000

815

40,750,000

1,255

125,500,000

11,965,489

3,913,770,350

3,666,785
44,630,080

358,758,100
14,671,045,950

VICTORY L I B E R T Y LOAN.

Victory 4f's:
C o u p o n notes .*
C o u p o n notes issuable a c c o u n t conversion ( d e n o m i n a t i o n s
una.vailable) . . •
Registered n o t e s
Total

•

••..

. .

Victory 3 | ' s :
C o u p o n notes
Registered n o t e s
Total.
Total Victory l o a n . . .

.

..

T o t a l of all l o a n s :
Temporary coupon bonds
Permanan'^t coupon b o n d s a n d notes

669
318,369 •
. .

T o t a l of all loaris
Issuable items:
Coupon bonds a n d notes
P e r m a n e n t c o u p o n b o n d s on c o n s i g n m e n t

319,038
66,470

3,190,380,000
664,700,000

5,786

289,300,000

11,490

1,149,000,000

48,296,865
6,048,069

15,029,804,050
4,117,754,300

385,508

Total
Registered b o n d s a n d notes.."

6,690,000
3,183,690,000

3,855,080,000

5,786

289,300,000

11,490

1,149,000,000

54,344,934

19,147,558,350
1,933,700
-543,600

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119,148,948,450

Total outstanding.




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to

EXHIBIT

to

51.

00'

L I B E R T Y BONDS, VICTORY NOTES, T R E A S U R Y NOTES AND C E R T I F I C A T E S OF I N D E B T E D N E S S ,
SECURITIES
ACCOUNT, SHOWING BY D E N O M I N A T I O N S T H E AMOUNTS D E L I V E R E D , R E T I R E D , AND OUTSTANDING F O R T H E
FISCAL Y E A R E N D E D J U N E 30, 1921.
$50.

Total
T o t a l t o be a c c o u n t e d for




'

Amount.
$170,500
2,056, 592,500
286,841,000

Number
of pieces.
138
2,902, 882
708,457
89, 932

Amount.
$69,000
1, 451,441,000
354,228,500
44,966,000

Number
of pieces.
107
7,250,996
777,375.
158,425

Amount.
$107,000
7, 250,996,000
777, 375,000
158,425,000

1,522,845,400

23,436,040

2, 343,604,000

3,701,409

1,850,704,500

8,186,903

8,186,903,000

3
3,758, 929
2,020

.150
187,946,450
101,000

• 11
2,497,624
2,137

1,100
249, 762,400
213,700

518,306
1, 834
17,630

^ 259,153,000
917,000
8, 815,000

2
1,457,435
1,571
25,611

2,000
1,457,435,000
1,571,000
25,611,000

3, 760,952

Total
O n h a n d F e d e r a l reserve b a n k s (retired securities), J u n e 30,
1920:
I n t e r i m certificates
T./iberty issues in coupon form.
L i b e r t y issues in registered form

Number •
of pieces.
1,705
20, 565,925
2,868,410

30,456, 908

Total
O n h a n d F e d e r a l reserve b a n k s ( c o n s i g n m e n t s t o c k ) , J u n e 30,
1920:
I n t e r i m certificates.
L i b e r t y issues i n c o u p o n form
..
....
L i b e r t y issues i n registered form
Certificates of i n d e b t e d n e s s

Total

$1,000.

$500.

Number
of-pieces.
Amount.
$193, 550
3,871
29, 260,675 " 1,463,03-3,750
59,618,100
1,192,362

O u t s t a n d i n g J u n e 30, 1920:
Tnterim certificates
.
L i b e r t y issues i n c o u p o n form
Jyiberty issue.s in rp.gistereri form
Certificates of i n d e b t e d n e s s

Securities issued d u r i n g fiscal y e a r :
L i b e r t y issues i n c o u p o n form.
L i b e r t y issues i n registered form
T r e a s u r y notes
Certificates of i n d e b t e d n e s s

$100.

188,047,600

2,499, 772

249,977, 200

537,770

268, 885,000

1,484,619

1, 484,619,000

116
1,030,641
272

5,800
51, 532,050
13,600

71
690, 553
478

7,100'
69,055, 300
47, 800

5
102,961
129

2,500
51,480, 500
64,500

6
166,748
154

6,000
• 166 748 000
154,000

1,031,029

51, 551,450

691,102

69,110, 200

103,095

51,547,500

166, 908

8,428,021
209,018

421,401,050
10,450,900

7,660,123"
514,609
45, 261

766,012,300
51,460,900
4,526,100

. 1,364,727
141,326
29,376
302, 528

682, 363, 500
70, 663,000
14,688,000
151,264,000

3,061,326
226,174
62,463
512, 884

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8,637,039

431,851,950

8, 219,993

43,885, 928

2,194, 296,400

34,846, 907

821,999,300.
3,484,690,700

_.

166, 908,000
3,061, 326,000
226,174,000
62,463,000
512,884,000

1,837, 957

918,978, 500

3, 862,847

3', 862,847,000

6,180, 231

3,090,115,500

13, 701, 277

13, 701, 277, 000

o
Securities retired during fiscal j^^ear:
Interim certificates
Liberty issues in coupon form
Liberty issues in registered form..
Treasury notes
Certificates of indebtedness
Total..
On hand Federal reserve banks (consignment stock), June 30,
1921:
Interim certificates
Liberty issues in coupon form
:
Liberty issues in registered form
Treasury-notes
Certiflcates of indebtedness

560
90,100
976,415,150 13, 252,884
389,461
8, 730, 650
310

56,000
1, 325,288,400
38, 946,100
31,000

19, 704, 718

985, 235, 900 13,643,215

1, 364,321, 500 2,109, 280

1, 626,224
1,935

150
81, 311, 200
96, 750

4
960, 285
2, "567
22, 791

400
96,028, 500
256, 700
2, 279,100

1,628,162

81, 408,100

985,647

98, 564,700

2,185
21, 323,739
1,227,124

1,223
109, 250
1,066,186, 950 17,201,056
61, 356, 200 2,993,606
22,160

122, 300
1,720,105,600
299,360,600
2, 216,000

Total

22, 553,048

1,127,652,400

20, 218,045

T o t a l a c c o u n t e d for.

43, 885,928

2,194, 296,400 34,846, 907

Total..
Outstanding June 30,1921:
Interim certificates
Liberty issues in coupon form
Liberty issues in registered form..
Treasury notes
Certificates of indebtedness




74
1,810, 666
84, 565
285
213,690

1,802
19,528,303
174,613

53
37,000
905, 333,000 4, 510,972
42, 282, 500
97, 933
142, 500
286
337, 293
106,845,000
1,054,640, 000

4,946, 537

348,481
2,014
8, 382
53,164

174, 240, 500
1,007, 000
4,191,000
26,582,000

1
943,471
2,172
13, 989
79, 747

412,041

206,020, 500

53,000
4,510,972,000
97,933,000
286,000
337,293,000
4,946, 537,000

1,000
943,471,000
2,172,000
13,989,000
79,747,000

Ul

1,039, 380

1,039, 380,000

a

2,729,729
765,167
20,709
143,236

34, 500
61
1, 364,864, 500 6,482,062
382, 583, 500
905,169
10, 354, 500
48,188
71,618,000
279, 880

61,000
6,482,062,000
905,169,000
48,188,000
279,880,000

2,021,804, 500

3,658, 910

1,829,455,000

7,715,360

7,715,360,000

3,484,690, 700

6,180, 231

3,090,115,500

13,701, 277

13,701,277,000

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Liberty bonds. Victory notes. Treasury notes and certificates of indebtedness, etc.—Continued.
$5,000,

$10,000.

Number
of pieces.
8
214, 246
65, 720
64, 076

Total....
O n h a n d F e d e r a l reserve b a n k s (cons i g n m e n t s t o c k ) , J u n e 30, 1920:
I n t e r i m certificates
L i b e r t y issues i n c o u p o n form
L i b e r t y issues i n registered form
Certificates of i n d e b t e d n e s s

Amount.
$40,000
1,071, 230,000
328, 600,000
320, 380,000

Number
of pieces.
2
254,231
57,300
68,418

Amount.
$20,000
2, 542, 310,000
• 573,000,000
684,180,000

344, 050

O u t s t a n d i n g J u n e 30,1920:
I n t e r i m cp.rtificates
L i b e r t y issues i n c o u p o n form
L i b e r t y issues i n registered form
Certificates of i n d e b t e d n e s s

1, 720, 250,000

379, 951

3, 799, 510,000
•

Total,

$100,000,

$50,000.

Number
of pieces.

5,117

$255,850,000

8,793
12,825

$879,300,000
1,'282, 500, 000

Number
of pieces.
5,831
60,448, 955
5,683, 534
393, 993

5,117

255, 850, 000

21,618

2,161,800, 000

66, 532, 313

22,124, 841,900

333
1,903.

33,300, 000
190, 300.000

16
8, 343, 897
10, 919
73,851

3,250
2,947,771,850
74,462, 700
425, 726,000

2, 236

223, 600,000

8,428,683

. 3,447,963,800

Number
of pieces.

Amount.

Amount.

Amount.
$600,050
15,835,603,250
3, 514,812,600
2,773,826,000

^

470, 920,000
12, 820,000
114, 930,000

• 374

18, 700,000

. 415,465,000

• 59,887

598,670,000

374

•• 18,700,000

. 100,000
51,620,000
40,000

50,000

30, 365,000
65,000

10
5,162
4

1

6,073
13

1

50, 000

1

100,000

209
2,002,138
1,052

171,400
420, 800, 850
534, 90^

30, 430,000

5,176

51, 760,000

2

100,000

1

100,000

2,003, 399

863, 520,000
91,695,000
67, 775,000
671, 590,000

241, 205
20,311
1.1,076
121,277

2,412, 050,000
203,110,000
110,760,000
1, 212, 770,000

1,793

89, 650,000

4,267
1,325
16, 924

426, 766,666
132, 500, 000
1,692,400,000

20,928,106
1,135,837
163,056
1,088, 736

^ 8,206,672,850
1,169,903,800
392,712,100
9,475,600,450

Total

338, 916

1, 694, 580,000

393,869

3, 938, 690,000

1,793

89,650,000

22, 516

2, 251, 600, 000

23, 315,735

19,244, 889, 200

T o t a l t o b e accounted for

772,145

3,860,725,000 • 8.38,863

8, 388,630,000

7,286

364,300,000

46, 371

4,637,100,000

100, 280,130

45,239,202,050

Securities retired d u r i n g fiscal y e a r :
' I n t e r i m certificates...:
L i b e r t y issues i n coupon form
L i b e r t y issues i n registered form
T r e a s u r y notes
Certificates of i n d e b t e d n e s s
Total




^.
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421, 507,150

172,704
18, 339
13, 555
. 134, 318

Securities issued d u r i n g fiscal year:
L i b e r t y issues i n c o u p o n form
L i b e r t y issues i n registered form
T r e a s u r y notes
Certificates of i n d e b t e d n e s s . .

47,092
1,282
11,493

6,086

Total

322, 555,000
6, 840,000
86, 070,000

83, 093

Total
O n h a n d F e d e r a l reserve b a n k s (retired
securities), J u n e 30,1920:
I n t e r i m certificates
L i b e r t y issues i n c o u p o n form
L i b e r t y issues in registered form

64, 511
1,368
17, 214

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155, 278
11, 024
189
124, 691

5,000
776, 390,000
55,120,000
945,000
623,455,000

11
186,437
11, 283
69
118,096

110,000
1, 864, 370, 000
112, 830,000
690,000
1,180,960,000

1

50,000

1,077

53, 850,000

1,575
3
20,150

157, 500,000
300,000
2,015,000, 000

2,502
39,444, 540
771,531
1,142
814, 582

401,100
10,358,768, 550
567,192,250
.2, 394, 500
9, 532, 891,000

291,183

1,455, 915,000

315,896

3,158, 960,000

1,078

53,900,000

21, 728

2,172,800,000

41, 034, 297

20,461,647,400

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O n h a n d F e d e r a l reserve b a n k s (cons i g n m e n t s t o c k ) , J u n e 30, 1921:
I n t e r i m certificates
L i b e r t v issues in c o u p o n form
. L i b e r t y issues i n registered f o r m . . . . . . .
T r e a s u r y notes
Certificates of i n d e b t e d n e s s

422

21,100, 000

329
141
1,529

32, 900, 000
14,100, 000
152, 900,000

8
3,981,691
11, 742
53,032
169,690

1,550
2,022,276, 200
74,767,450
^ 91,394,100
509,749,000

618, 510,000

422

21,100, 000

1,999

199, 900, 000

4, 216,163

2, 698,188, 300

1
319,038
66,470
7,369
68, 238

10,000
3,190, 380,000
664, 700,000
73,690,000
682, 380, 000

5, 786

289, 300,000

ii, 496
1,181
9,973

1,149,000,000
118,100,000
997, 300,000

3,546
48, 296,865
6,048,069
108,882
572,308

372,050
15,029, 804,050
4,117, 7.54, 300
298, 923, 500'
2,632, 512, 450

394, 301

1.971..50.5. 000 i 461. 116

4, 611,160, poo

5,786

.289, 300, 000

22,644

2, 264,400,000

55,029,670

22,079, 366, 350

772,145

3, 860, 725,000 | 838, 863

8, 388, 630,000

7,286

364. .300.000

46, 371

4, 637,100,000

100, 280,130

45,239, 202,050

61,015
1,159
4,091
20,396

305,075, 000
5,795,000
'20,455,000
101, 980, 000

42, 215
1,144
3,638
14,854

422,150,000
11,440,000
36, 380,000
148, 540,000

86,661

433, 305, 000

61, 851

• 7
241, 241
73, 257
9,275
70,,521

35, 000
1, 206, 205,000
366, 285,000
46, 375,000
352,605,000

T o t a l '.
T o t a l a c c o u n t e d for

Total
O u t s t a n d i n g J u n e 30,1921:
I n t e r i m certificatesL i b e r t y issues i n coupon form
L i b e r t y i s s u e s l n registered form
T r e a s u r y notes
Certificates of i n d e b t e d n e s s . . .

A m o u n t o u t s t a n d i n g as a b o v e
P l u s i t e m s issuable:
L i b e r t y issues i n c o u p o n form (on
exchange)
Treasury notes
Certificates of i n d e b t e d n e s s (full-paid
subscription)..

,

1,561,650
12,268,100
76, 062,000

Total
Less p e r m a n e n t b o n d s on c o n s i g n m e n t . . . ,

22,169, 258,100
543, 600

T o t a l o u t s t a n d i n g a n d issuable

1 22,168, 714, 500




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22,079, 366, 350

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EXHIBIT

52.

LIBERTYBONDS, VICTORYNOTES,TREASURY NOTES AND CERTIFICATES OF INDEBTEDNESS—DELIVERIES,
RETIREMENTS, AND OUTSTANDING.

to
to

Fiscal year ended June SO, 1921.
C o n d i t i o n of a c c o u n t — J u n e 30^ 1920.

L o a n or series;

O u t s t a n d i n g J u n e 30, 1920,

N u m b e r of
pieces.
First Liberty loan:
F u l l - p a i d i n t e r i m certificates
3i-% c o u p o n b o n d s
3 | % registered b o n d s
Converted 4% coupon bonds
C o n v e r t e d 4 % registered b o n d s
Converted 4^% coupon bonds
C o n v e r t e d 4 | % registered b o n d s
Second c o n v e r t e d 4 ^ % c o u p o n b o n d s
Second c o n v e r t e d 4 ^ % registered b o n d s . .
Second L i b e r t y l o a n :
4% coupon bonds
4 % registered b o n d s ^
Converted 4^% coupon bonds i
:.
C o n v e r t e d 4 | % registered b o n d s i.
Third Liberty loan:
4 i % coupon bonds
4 | % registered b o n d s
F o u r t h Liberty loan:
4 i % coupon bonds
4 i % registered b o n d s
Victory L i b e r t y l o a n :
4f% c o u p o n n o t e s
4 | % registered notes
3 | % coupon notes
3 | % registered notes
Total..




On hand—Federal
reserve
b a n k s retired securities (canceled).
N u m b e r of
pieces, •

15,831
2,515,961
81,554
519,631
62,424
1,703,884
193,019
9,8672,521

$600,050
1,094,886,800
314,585,200
49,086,300
16,566,050
345,418,800
101,890,900
2,442,800
1,049,350

1,705,708
232,340
6,816,205
625,457

209

Amount,

On
hand—Federal
banks consignment
ties.
N u m b e r of
pieces.

$171,400

2 16
31,212

reserve
securiPi
fej

Amount,

8 S3,250
10,456,400

19,969

3,101,700

272,950

55,050,400

'ii2,*688"

* 24," 756,'566'

992,726
1,634
1,420
395

265,745,200
5,200,600
•150,000
1,351,700

173,803,350
65,901,350
2,364,268,500
528,343,100

497,561
1,020

73,293,850
315,500

484,241

99,194,550

2,051,243
1,319

866,059,050
7,699,600

13,255,559
1,320,648

2,922,750,500
729,288,950

1,326,772

3,333,187
3,063

1,045,105,550
10,448,000

20,901,538
2,024,678

5,308; 266,900
1,086,087,600

208,185
2,383

52,855,950
14,572,000

12,554,310
1,133,996
466,292
6,897

2,840,555,850
586,862,950
734,123,450
84,237,150

11,103

17,087,050

34,045
32

45,131,650
219,400

779,806
1,683
188,927
, 442

334,147,000
24,477,300
219,007,750
10,713,500

66,138,320

19,351,015,900

2,003,399

421,507,150

8,354,832

3i,.022,237,800

O

257,436,100

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Certificates of i n d e b t e d n e s s :
L o a n issues ( m a t u r e d J u n e 30,1920)
T a x issues ( m a t u r e d J u n e 30,1920)
E-1920...
F-1920
G-1920
H-1920
A-1921
B-1921.......
C-1921
D-1921
E-1921
F-1921
G-1921
H-1921
A-1922
T a x issues ( u n m a t u r e d J u n e 30,1920):
T-10
TD-1920
TM-1921
TJ-1921
,
TM-2-1921
TM-3-1921
TS-1921
TM-4-1921
TJ-2-1921
TD-1921
TS-2-1921
TM-1922
TJ-1922
Pittman act...
O n e - d a y specials
TotaL..

178
3,228
30,228
16,535
33,959
28,023
29,922

224,000
4,676,500
153,650,000
79,015,500
169,033,500"
102,865,000
176,604,000

8,904
2,572
4,101
2,685
3,455

32,119,500
27, 742, 000
25 466,500
23,352,500
12 853 500

8,890
4,266
14,007
24,971

114,048,000
44 818 000
102,806,000
42,520,000

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74,660
104,179
37,492
35,272

•
;

657,469,000
703,026,000
201,370,500
242,517,000

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2

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: '.

393,993

259,375,00024,000,000

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2,773,826,000

73,851

425,726,000




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Treasury Notes:
A-1924
Aggregate t o t a l

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66,532,313

1 Adjustment in outstanding made in fiscalyear as of June 30,1920,

22,124,841,900

2,003,399

421,507,150

8,428,683

3,447,963,800

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2 Unadjusted,items.

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Liberty bonds. Victory notes. Treasury notes and certificates of indebtedness—deliveries, retirements, and owistoTicZm^—Continued.
T r a n s a c t i o n s d u r i n g fiscal y e a r .

L o a n or series.

Delivered.!
N u m b e r of
pieces.

F i r s t L i b e r t y loan;
F u l l - p a i d interim, certificates 2
3^% coupon bonds
3 ^ % registered b o n d s
Converted 4 % c o u p o n b o n d s
C o n v e r t e d 4 % registered b o n d s
C o n v e r t e d 4^% c o u p o n b o n d s .•...C o n v e r t e d 4 i % registered b o n d s
Second c o n v e r t e d 4 i % c o u p o n b o n d s —
Second c o n v e r t e d 4 i % registered b o n d s . .
Second L i b e r t y l o a n :
4% coupon b o n d s
. 4 % registered b o n d s 2
C o n v e r t e d 4^% c o u p o n b o n d s 2
C o n v e r t e d 4 i % registered b o n d s 2
T h i r d L i b e r t y loan:
4Wo c o u p o n b o n d s .
4 \ % registered b o n d s
^ F o u r t h L i b e r t y loan:
4J% coupon bonds
4 \ % registered b o n d s
Victory l i b e r t y loan:
4f% c o u p o n nores
4 J % registered n o t e s .
3f ^ coupon n o t e s
•.
. 3 | % registered n o t e s
:
Total..
Certificates of i n d e b t e d n e s s :
L o a n issues ( m a t u r e d J u n e 30, 1920).
T a x issues ( m a t u r e d J u n e 30, 1920)..
L o a n issues ( u n m a t u r e d J u n e 30, 1920):
E-1920
F-1920..
G-1920
:...-....:
H-1920
;.




Amount,

Condition of a c c o u n t — J u n e 30, 1921.
O n h a n d — F e d e r a l reserve
b a n k s c o n s i g n m e n t securities.

Retired,
N u m b e r of
pieces.

N u m b e r of
pieces.

Amount,

Outstanding,
N u m b e r of
pieces.

Amount.

3,546
2,315,504
79,287
91,197
40,804
1,881,054
229,792
8,259
2,471

$372,050
1,088,487,200
321,215,000
7,827,050
10,154,100
397,546,800
123,470.050
2,457,500
1,032,550

O
W
H

258,203,550
6,177,600

371,537
158,482
7,063,669
755,312

37,871,350
39,996,150
2,569,202,300
669,498,950

fej

1,404,820
1,959

685,193,900
16; 851,450

11,175,596
1,410,803

2,809,771,250
801,851,250

5,412,539,000
161,869,100

920,485
2,203

549, 210,350
11,573,050

14,596,341
2,199,337

4,9.08,571,050
1,444,906,650

127,976
287,057
2,258

693,642,250
93,698,950
404, 561,250
27,567,900

255,000
2,719
101,067
470

114,435,150
23,021,250
107,418,600
9,686,450

10,468,684
1,166,076
325,024
5,705

2,641,837,200
630,933,950
566,232,350
74,695,650

40,218,573

10, 926,361,900

3,993,441

2,097,045,200

5.1,34.8,480

19,147,930,400

156
3,092

194,000
4,561,000

22
136

30,000
115,500

42,173
21,655
40,507
31,739

195,606,500
112,896,500
202,805,500
131,213,500

4
1
15
14

21,530

3 $1,550
6,780,900

156,885

36,313,700

392,436
2,531
3,163
392

199,544,400
6,106,150
599,700
1,351,500

66,590
8,899
5,977
279
928,931
55,451
10,632
174

$61,009,950
79,773,500
4,786,050
156,750
291,882,700
32', 591,300
2,956,100
39,050

2,502
276,729
11,166
570,445
21,899
1,464,739
17,781
10,497
227

$401,100
71,085,050
73,143,700
67,883,700
6,568,700
330,706,000
10,106,600
2,491,700
56,050

18.881
1,134
3,462,257
199,830

9,016,600
332,150
1,530,021,800
214,858,850

2,080,980
76,012
4,793,005
69,826

252,861,050
26,552,850
1,932,943,500
75,225,000

253,874

64,575,950

472,431
1,468

2,266,301
248,674

459,728,050
171,309,150

7,601,403
159,623

1,190,055,050
92,403,400

13,959,363
459,242

5,509,197,550
517,689,200

19,552,260
284,763

185,290
161,092
23,884
1,062

258,124,700
136,313,900
79,949,350
16,779^ 950

22,063,943

9., 376,576,650

3,045
2,549
2,462
1,045

9,841,000
6,139,500
8,331,500
5,006,000

4,000
500
26,000,
10,000

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A-1921..
B-1921
C-1921
D-1921..
s
E-1921
F-1921
a-1921.
H-1921
A-1922
T a x issues ( u n m a t m ' e d J u n e 30, 1920):
T-10
TD-1920
:
• TM-1921..
- TJ-1921
TM-2-1921
•
TM-3-1921
TS-1921
TM^-1921
TJ-2-1921...".
TD-1921
TS-2-1921
TM-192.2
TJ-1922
P i t t m a n Act
.'
Special ( W a r F i n a n c e C o r p o r a t i o n )
S h o r t t e r m specials

5,901
36,203
67,575
69,944
34,c679
65,450
54,286
65^ 580
81,374
568
2,134
3,171
17,273
29.507
24; 512
86,715
47,307
48,127
101, 561
58,845
89,544
88, 514
386
1
418

Treasury notes:
A-1924

1,350,000
5,-751,500
6,114,000
25,035,500116,403,000
137,846,500
386,233,000
155,534,000
242.276,000
451,137,500
• 230.082,500
328; 641,500
362,624,500
187,338,000
32.854,450
5,014,500,000

84,093
110,480
54,566
71,436
29,363
24,495
3,267
47,117
39,132
3,171
3,265
2,751
588
242

772,833,500
753,405,000
310,092,500
268,647,000
116,254,000
137,836,500
9,435,000
155,340,500
205,337,000
23,906,000
4,630,500
8,455,000
3,436,000
230,838,000

420

9,475,600,450

814,582

9,532,891,000

163,056

392,712,100

1,.142

23,315,735

19, 244,889, 200

41,034.. 297

39,328
36,-176
4,815
69,084 •
34, 618
10,102
2,-903
1,732
2,116

210,316,500
166,235,000
15,547,500
274,669,000
141,563, .500
13,607,000
12,036,000
7,273,000
5,420,000

5,818

38,621,000

25,500
34,000
152,936,000
1,143,000
76,000
187,408,500
122,950,500
185,262,500
253,249,000

10,913
15,723
lcS,492
24,453

• 37,688,000
39,035,000
40,390,500
46,531,000

25
99
104
3,751
144
17
73,992
190
1,2'/2
- 87,131
35,483
70,606
60,686
459
1

33,500
190, 500
198,000
5,400,000
149,000
10,000
.339.443,500
' 193,500
1,605,000
.385,394,000
187,182,500
284,961,000
275,751,500
215,875,000
32,854,450

2,329

36,025,500

9,456

37,354,500

7.723
11,259
20,097
16,187
27; 240

35,334,000
41, 837, 500
38,269, 500
35,225,500
83,437,000

169,690 .

509,749,000

572,308

4 2,632,512,450

2,394,500

53,032

91,394,100

108,882

298,923,500

20,461,647,400

4.. 216,163

2,698,188,300

55,029.670

22,079,366,350

Ul
O
pi
fej

H4

O
fej.
H

W
fej

.-

Aggregate total
Issuable items (denominations'unavailable):
L i b e r t v loans
Less i t e m s issued in excess on t e m p o r a r y
account

H
pi
fej

>

Ul

& 1,561,650

d
w

exchange
543,600
5 1,018,050

N e t issuable on L i b e r t v loans
Certificates of i n d e b t e d n e s s
Treasury notes
•

..

...

76,062,000
12,268,100

89,348,150
22.168,714,500

Total




10
2756,942
860
61
44,435
35,660
45,356
54,805

5,038, 500,000

1,088,736

Total

20,884,500
166,269,000
207,104, 500
275,812,000
141,639,500
238,703, 500
174,021,500
232,926,000
305,200,000

1
1 Includes shipments to Federal reserve banks for stock.
2 Adjustment in outstanding made in fiscal year as of June 30, 1920.
8 Unadjusted items.
< Includes $9,244,000 on which interest has ceased.
5 Does not include first 3J per cent bonds issuable on exchange of full-paid interim certificates.

'
to

276

REPORT ON T H E MNANCES.
EXHIBIT

53.

[Department Circular No. 225. (Loans and Currency.) Superseding Department Circulars No. 132 of
January 30, 1919, and No. 151 of June 24,1919,]

RECEIPT OF LIBERTY BONDS AND VICTORY NOTES FOR ESTATE
OR INHERITANCE TAXES
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,

Washington, January 31, 1921.
1. The followmg regulations are prescribed pursuant to section 14
of the Second Liberty Bond Act, approved September 24, 1917, as
amended by Third Liberty Bond Act, approved April 4, 1918, which
section is as follows:
SEC. 14, That any bonds of the United States bearing interest at a.higher rate
than four per centum per annum (whether issued under section one of this Act or
upon conversion of bonds issued under this Act or under said Act approved April
twenty-fourth, nineteen hundred and seventeen), which have been owned by any
person continuously for at least six months prior to the date of his death, and which
upon such date constitute part of his estate, shall, under rules and regulations prescribed by the Secretary of the Treasury, be receivable by -the United States al parand accrued interest in payment of any estate or inheritance taxes imposed by the
United States, under or by virtue of any present or future law upon such estate or
the inheritance thereof.

Pursuant to section 18(d) of the Second Liberty Bond Act, approved
September 24, 1917, as amended by the Victory Liberty Loan Act,
approved March 3, 1919, the word ^^bonds'^ where it appears in the
above section shall be deemed to include notes issued under said section 18. This circular supersedes Treasury Department Circulars
No. 132, dated January 30, 1919, and No. 151, dated June 24, 1919.
2. The bonds and notes coming within the provisions of said section at present issued and outstanding are—
Ofiicial title.
(a)
(b)
(c)
(d)
(e)
(/)

Date of issues.

First Liberty Loan Converted 4i per cent bonds of 1932-47.
First Liberty Loan Second Converted 4^ per cent bonds of 1932-47.
Second Liberty Loan Converted 4^^ per cent bonds of 1927-42
Third Liberty Loan 4^ per cent bonds of 1928
Fourth Liberty Loan 4 | per cent bonds of 1933-38
Victory Liberty Loan 4 | per cent convertible gold notes of 1922-23,

Short title.i

May 9,1918
Oct. 24,1918
May 9,1918
May 9,1918
Oct. 24,1918
May 20,1919

First 4J's.
First Second 4J's.
Second 4i's.
Third 4i's.
Fourth 4i's.
Victory 4|'s.

1 Use short titles.

The words '^ bonds or notes ^ where they appear in this circular shall
^
be deemed to refer, respectively, to the six issues of Liberty bonds
and Victory notes above described. The First Liberty Loan 3^
per cent bonds of 1932-1947, the First Liberty Loan Converted 4
per cent bonds of 1932-1947, the Second Liberty Loan 4 per cent
bonds of 1927-1942, and the 3f per cent Victory Liberty Loari notes
of 1922-23 are not acjceptable in payment of Federal estate or
inheritance taxes and are not ^'bonds or notes'' within the meaning
of these regulations.
(GENERAL PROVISIONS.

3. Bonds or notes of the issues above specified are receivable for
such taxes only in case such bonds or notes have been owned by the
decedent continuously for at least six months prior to the date of



SECRETARY OF THE TREASURY.

277

his death and upon such date constitute part of his estate. The
reckoning of the required period of ownership will begin on the date
when the decedent acquired such bonds or notes by original subscription, by purchase, by conversion of bonds or notes of other issues,
or otherwise. For the purpose of reckoning the required period of
ownership a fraction of a day shall be considered a whole day. In
the case of acquisition of bonds or notes by original subscription,
the date of original subscription, or the date of issue of the bonds
or notes, whichever shall be later in time, shall be deemed, to be
the date of acciuisition, provided that payment in full on the
subscription shall have been completed and the bonds or notes
delivered thereon. In the case of acquisition of bonds or notes by
purchase, if registered bonds or notes of one of the issues above
enumerated as acceptable in payment of Federal estate or inheritance taxes have been duly assigned in blank or for exchange or
transfer, and delivered to the decedent assignee pursuant to such
assignment, the date of such delivery will be deemed the date of
acquisition, although such bonds or notes may not have been presented to the Treasury Department or to a Federal Reserve bank
for transfer or exchange until a later date. In the case of acquisition of bonds or notes by conversion of bonds or. notes of other issues
previously owned, the date of presentation for conversion to the
Treasury Department or a Federal Reserve bank will be deemed
the date of acquisition: Provided, however. That (a) 4J per cent bonds
of the First Liberty Loan Cgnverted and of the Second Liberty Loan
Converted issued on conversion of 4 per cent bonds presented after
July 1, 1918, and on or before November 9, 1918, pursuant to the
provisions of Treasury Departmc^nt Circular No. 114j dated May 9,
1918, shall, for the purpose of reckoning the required perioci of
ownership, be deemed to have been acquired on June 15, 1918, in
the case of bonds of the First Liberty Loan Converted, and on May
15, 1918, in the case of bonds of the Second Liberty Loan Converted;
and (b) 4 per cent bonds of the First Liberty Loan Converted and of
the Second Liberty Loan presented for conversion into 4^ per cent
bonds on or after March 7, 1919, pursuant to the extension of the
conversion privilege under Treasury Department Circular No. 137,
as amencied and supplemented, shall be deemed to be converted as
of the interest payment date next succeeding the date of presentation for conversion, and such next succeeding interest payment date,
and not the date of presentation for conversion, will be deemed to
be the date o l acquisition of such bonds for the purpose of reckoning
the required period of ownership. Exchange of coupon for registered bonds or notes, or of registered for coupon bonds 'or notes, or of
bonds or notes of one denomination for bonds or notes of other
denominations of the same issue, or of temporary coupon bonds for
permanent bonds, whether before or after the death of the decedent,
will not prevent the receipt of the bonds or notes issued upon such
exchange for estate or inheritance taxes, provided that no change
of ownership takes place.
4. Bonds or notes tendered in payment of taxes pursuant to these
regulations must be accompanied by an affidavit of one or more of
the legal representatives of the estate on Form 760 Revised (Exhibit
A), hereto attached, and the collector is authorized to require such
further evidence as may be necessary to enable him to determine



.278

REPORT ON THE'FINANCES.

that the bonds or notes are properly receivable in payment of estate
or inheritance taxes pursuant to law and these regulations. The
term ^4egal representative" where it appears in this circular means
the executor or administrator of the decedent's estate or, if there be
no executor or administrator, such other person or persons as may
be recognized' as such under the Estate Tax Law and regulations
and entitled to assign any registered bonds or notes owned by the
decedent under the regulations of the Treasury Department with
regard to United States bonds and notes.
5. On receipt of such bonds or notes, and on making such deter• mination, and provided that the bonds or notes tendered conform
to the other provisions of these regulations, the collector shall stamp
or plainly write upon the face of each bond or note, over his signature, the following legend in indelible ink:
This bond/note has this day been received in payment of
(Date.)

estate (or inheritance) taxes on the estate of

under authority
• (Name of decedent.)

of law, and will not be redeemed by the United States except for credit of the undersigned
-.., Collector of Internal Revenue for the
:....
District of

Coupons, if any, attached to each bond or note, shall be indelibly
stamped or marked ^^canceled" on the face of each coupon in letters
of sufiicient size to be plainly legible.
6. Where bonds or notes are owned by a partnership of which the
decedent was a member for the six months prior to his death, and
have been continuousl}^ so owned for at* least the six months prior
to his death, a fractional part of such bonds or notes proportionate to
the deceased partner's share in the capital of the partnership will, for
the purposes of these regulations, be deemed to have been owned by
him to the extent that such fractional part is actually distributed to
his estate upon liq.uidation: Provided, however. That nothing herein
contained shall be deemed to make bonds or notes acceptable in
amounts less than some authorized denomination thereof. I n
addition to the affidavit on Form 760 Revised, proof satisfactory to
the Secretary of the Treasury must be presented as to the ownership
of the bonds or notes by the partnership and the decedent's interest
in the partnership; such proof in general should include affidavits
of the surviving partners and of the legal representative of the
decedent's estate showing (1) the character and extent of the interest
of the decedent in the capital of the partnership, (2) any special
interest of the decedent in the bonds or notes, (3) the period of ownership of the bonds or notes by the partnership and the period of the
decedent's membership in the partnership, and (4) the distribution
of the bonds or notes to the decedent's estate on account of his
distributive share in the partnership.
7.,Where bonds or notes are held in trust for or otherwise beneficially owned by any person on terms which entitle him unconditionally to demand and receive the legal title or a divided share thereof at
any time, he will, for the purposes of these regulations, be deemed the
owner of such bonds or notes or such divided share thereof: Provided,
however. That nothing herein contained shall be deemed to mafee
bonds or notes acceptable in amounts less than some authorized
denomination thereoi. In addition to the affidavit on Form 760
Revised, proof satisfactory to the Secretary of the Treasury must be



SECRETARY OF THE TREASURY.

"
"

279

presented as to the ownership of the bonds or notes by the trust and
the decedent's interest therein; such proof in general should include
affidavits by the trustee and the legal representative of the decedent's
estate showing (1) the creation of the trust, the terms and duration
thereof, and the interest pf the decedent therein; (2) the property
included under the trust, and particularly the period of ownership
of the bonds or notes by the trust; and (3) the distribution of the
bonds or notes to the decedent's estate on account of his share in the
trust estate, and the liability to Federal estate (or inheritance) tax
in respect to such bonds or notes.
' .
8. The entire tax may be paid in bonds or notes, or the tax may be
paid partly in bonds or notes and partly by any other form, of payment permitted by law or regulations duly in force. Collectors may
not, however, receive bonds or notes the par value and accrued, interest
of which, computed in accordance with these regulations, aggregate
a greater amount than the tax in payment of which the bonds or
notes are tendered. After bonds or notes, or cash, have been tendered and duly, received in payment of the tax, an election as to the
method of payment will be deemed to have been made by the taxpayer, and therefter requests for the return of such bonds or notes', or
cash, and the acceptance of payment in the alternative form will be
refused.
COUPON BONDS OR NOTES.

9. Coupon bonds or notes received for estate (or inheritance) taxes
must be delivered to the collector with all unmatured coupons
attached and with all matured coupons detached. Detached matured
coupons will not be receivable in payment of such taxes. The portion
of the face amount of the current coupon which represents accrued
interest to date of receipt for taxes will be determined in the manner
prescribed by the interest tables (Exhibits B and C) hereto attached,
and such accrued interest will be receivable for estate or inheritance
taxes. »
o
10. Temporary coupon bonds, all coupons originally attached
to which have matured and been detached, will not be accepjted in
,)ayment of estate or Inheritance taxes pursuant to the provisions of
this circular, b u t must first be exchanged for permanent bonds, pursuant to the provisions of Treasury Department Circular No. 164,
dated December 15, 1919, as amended and supplemented: Provided,
however, That Fourth Liberty Loan 4^ per cent bonds of 1933-1938,
in temporary form, will be acceptable until April 15, 1921, and First
Liberty Loan Second Convertecf 4^ per cent bonds of 1932-1947, in
temporary form, will be acceptable until June 15, 1921, in payment
of such taxes, accrued interest on such bonds to date of receipt of
taxes being covered for the current interest period by the temporary
coupon bond; b u t after such dates, respectively, such temporary
bonds must be exchanged for permanent bonds before presentation.
11. Coupon bonds or notes, after being received, and reception
indorsed on the bonds or notes as above required, will be deposited
by the collector in the Federal Reserve bank of the district in which
his office is located (or Federal Reserve branch bank, as hereinafter
provided) as a deposit of the par value with accrued interest, determined as above required. Such bonds or notes, unless delivered direct ,
to the Federal Reserve bank or branch when located in the same city,




280

REPORT ON THE FINANCES.

must be transmitted by registered mail but will not be insured. • The
collector will transmit with the bonds or notes an accurate schedule
on Form 761 Revised (Exhibit D) hereto attached, showing the serial
number and denomination of each bond or note transmitted, the
issue, the date of receipt for taxes, the amount of accrued interest, and
the amount for which credited against estate or inheritance taxes.
Such schedule shall be made in quadruplicate, the original to accompany the bonds or notes deposited with the Federal Reserve bank,
the duplicate to be transmitted to such Federal Reserve bank under
separate cover, the triplicate to be transmitted to the Secretary of the
Treasury, Division of Loans and Currency, Washington, and the
remaining copy to be retained by the collector. Collectors located
in Federal Reserve bank branch cities will deposit coupon bonds or
notes received by them hereunder with such branches in accordance
with the provisions hereof, and the term ^^Federal Reserve bank,"
where it appears herein, includes such branches, unless otherwise
indicated by the context.
12. The Federal Reserve bank on receipt and examination of such
bonds or notes will charge the Treasurer's account with par and
accrued interest to date of receipt for taxes as reported by the. collector, give credit in the Treasurer's account to the collector for like
amount, and issue a certificate of deposit in triplicate on National
Bank Form 15, transmitting the original to the Secretary of the
Treasury through the Treasurer of the United States with its transscript, and the duplicate and triplicate to the collector, who will
forward the duplicate to the Commissioner of Internal Revenue.
Such Federal Reserve bank will then physically cancel the bonds or
notes and coupons attached, and transmit the same to the Treasurer
of the United States with the original or duplicate of the collector's
schedule (Form 761 Revised), to which shall be added the Federal
Reserve bank's certificate as shown thereon.
13. In the event that bonds or notes in coupon form are tendered
to a collector of internal revenue in payment of Federal estate or
inheritance taxes hereunder, and after having been received by the
collector and stamped or otherwise indorsed by him as provided
herein, are found to be not acceptable in payment of such taxes.
Federal Reserve banks will issue clean bonds or notes in exchange for
such erroneously stamped or indorsed coupon bonds or notes through
the denominational exchange account: Provided, however. That the
bonds or notes erroneously stamped or indorsed and presented for
such exchange must be accompanied by an official certificate on F o r m
834 (Exhibit E) attached hereto, signed by the collector of internal
revenue concerned, to the effect that the stamp or indorsement was
affixed in error and that the bonds or notes (which must be specifically
described) were not in fact accepted in payment of estate or inheritance taxes. Such exchanges need not be reported specifically to the
Department, b u t the bonds or notes so stamped or indorsed and replaced must be accompanied by the certificate aboye described when
lorwarded by the Federal Reserve bank to the Department for credit.
In case any such bonds or notes have been deposited with a Federal
Reserve bank and charged to the Treasurer's account and credit
therein given to the collector therefor, pursuant to paragraph 12
hereof, the Federal Reserve bank will issue new bonds or notes
therefor as herein provided through its denominational exchange




SECRETARY OF THE TREASURY.

281

account, taking the receipt of the collector for such bonds or notes
on Form N - 2 (Exhibit G) attached hereto, and charging the collector
in the Treasurer's account with the amount previously credited
therein on account of such bonds or notes, supporting the entry with
the receipt oii Form N - 2 .
REGISTERED BONDS OR NOTES.

n
14. Registered bonds or notes are also receivable for estate or
inheritance taxes in accordance with these regulations. In addition
to requiring the affidavit (Form 760 Revised) the collector shall
determine that the registered owner whose name is inscribed on the
borid or note is the decedent whose estate is liable to estate (or
inheritance) taxes and that the bond or note is presented from the
custody or control of the legal representative or representatives of
such estate. Such bond or note shall be assigned to " the Secretary •
of the Treasury for redemption in payment of estate (or inheritance)
t a x e s " by the authorized legal representative or representatives of
the deceased registered owner. If an executor or administrator of
the decedent's estate has been appointed, such representative or
representatives must furnish to the collector a certificate under the
seal of the court in which the estate is being administered or a duly
certified copy of the letters testamentary or of administration, showing the appointment of such representative or representatives, the
date thereof, and that the appointment is still in force. Such certificate or certification of the copy must be dated not more than
thirty days prior to its presentation to the collector. AU such documents of authority will be attached to the bond or note and forwarded
therewith by the collector as hereinafter provided. Where there are
two or more legal representatives, all must unite in the assignment,
unless by decree of court or testamentary provision some one or
more of them is designated or empowered to dispose of the bonds or
notes. If no executor or administrator has been appointed, the
assignment must be made by the person or persons entitled to assign
the bonds or notes under the regulations of the Treasury Department
as to transfers without administration, and the bonds or notes will
be accepted subject to submission tb the Secretary of the Treasury,
Division of Loans and Currency, for specific approval of the transfer.
The form printed on the back of the bond or note must be used for
assignment, and the assignment must be dated and properly
acknowledged as prescribed in the note printed on the back of the
bond or note. Officers authorized to take acknowledgments of
assignments of registered bonds or notes in addition to those mentioned on the back of the bond are designated in paragraph 16 of
Treasury Department Circular No. 141, dated September 15, 1919,
and in the general regulations of the Treasury Department with
regard to United States bonds and notes. The collector will satisfy
himself that the above-mentioned documents of authority and the
requisite signatures and acknowledgments are in hand before noting
on the bond or note its reception for taxes, as provided in paragraph
5 herepf, but the final determination of the correctness or validity
of the assignment will be made by tht' Secretary of the Treasury,.
Division of Loans and Currency, at Washington, on receipt of all
such bonds or notes and documents, when transmitted as hereinafter
provided.



282

REPORT ON' THE FINANCES.

15. By reason of the periodical closing of the transfer booTcs of the
Treasury Department for the payment of interest on registered bonds
and notes, and the impossibility of stopping payment of interest to the
registered holder during the period of such closing, registered bonds and
notes will not be receivable in payment of estate or inheritance taxes
during the period of closing of the boolcs of the issue in question unless
an adjiistment of interest is made with the coUector as prescribed by
paragraph 17 hereof. The books are closed with respect to each issue
tor dne month prior to each interest date. The closed periods with
respect to each bond or note may therefore be determined by inspection of the bond or note itself, being one month prior to each interest
payment date named thereon, and until the day following such
interest payment date. The closed periods for each issue of bonds or
notes receivable for estate or inheritance taxes are also stated in the
table (Exhibit H) hereto attached.
i6. Collectors will examine each registered bond or note tendered
for estate or inheritance taxes to determine whether the transfer
books of the issue in question are then open or closed. If the books
are then open but are due to close on a date too early to permit the
bond or note to be transmitted to the Secretary of the Treasury,
Division of Loans and Currency, and to be received by such division
prior to the closing date, the collector will advise the. Secretary of
the Treasury, Division of Loans and Currency, by telegraph at the
time of receipt of the bond or note, using form (Exhibit 1) hereto
attached, and will immediately confirm the same by mail. The
Division of Loans and Currency will thereupon stop interest payment
on such bond or note. The Secretary reserves the right to require
an adjustment of the interest on any registered bond or note tendered
to the collector during an open period but received at the Division of
Loans and Currency during a closed period of the transfer books of
the issue in (^[uestion. Executors and other legal representatives are
urged to tender registered bonds or notes at a time when the transfer
books of such bonds or notes are open, or to exchange such bonds or
notes for coupon bonds or notes before the transfer books of such
bonds or notes close in order to avoid the necessity for interest
adjustments.
17. Registered bonds or notes tendered pursuant to these regulations will be received at par and accrued interest computed in accordance with tables (Exhibits B and C), hereto attached. If such bonds
or notes are tendered while the transfer books are open the interest
will be computed from the last preceding interest date as shown
thereon to the date of receipt. If they are tendered while the transfer
books are closed, since it is impossible to stop the mailing of the next
interest check, they may be received at par, with a deduction for the
interest from the date of receipt to such next following interest date,
computed in accordance with said tables.
18. Registered bonds or notes received pursuant to these regulations, and bearing the stamp or writing required by paragraph 5
hereof, will be transmitted with all accompanying documents of
authority to the Secretary of the Treasury, Division of Loans and
Currency, Washington, by registered mail, but not insureds The
collector will make an accurate schedule on Form 762 Revised
(Exhibit J), hereto attached, in triplicate, showing the date of death
of the decedent, the serial number and denomination of each bond or




SECRETARY OF THE TREASURY.

283

note, the issue, accrued interest, the date of receipt for taxes, and
the amount for which credited against estate or inheritance taxes.
The original of this schedule must accompany the bonds or notes sent
to the Secretary of the Treasury, Division of Loans and Currency;
the duplicate shall be transmitted to the Secretary of the Treasury,'
Division of Loans and Currency, under separate cover; and the triplicate shall be retained by the collector.
19. On receipt of such bonds or notes, the Division of Loans and
Currency will determine whether the assignment is sufficient and has
been properly executed, whether the bonds or notes are of an issue,
receivable for estate or inheritance taxes hereunder, whether the
Department's record of registration is consistent with the affidavit of
ownership (Form 760 Revised), and the amount at which such bonds
or notes are receivable for estate or inheritance taxes, and will, if it
finds the bonds or notes in order, .transmit them with its advice on
Form L. & C. 122 (Exhibit K), hereto attached, to the Treasurer of
the United States for redemption. The Treasurer will thereupon
cancel the bonds or notes and issue a certificate of deposit in the
name of the collector, in triplicate, and will forward the original to
the office of the Secretary of the Treasury, Division of Bookkeeping
and Warrants, and transmit the duplicate and triplicate of such
certificate to the Commissioner of Internal Revenue, Accounts
Division, who will forward the triplicate to the collector.
20. In the event that bonds or notes in registered form are tendered
to a collector of internal, revenue in payment of Federal estate or
inheritance taxes, pursuant hereto, and after having been assigned
to the Secretary oi the Treasury for redemption in payment of such
taxes and received and stamped or otherwise indorsed by the collector
as provided herein, are found to be not acceptable in payment of
such taxes, the Secretary of the Treasury, or the Federal Reserve
banks, will either (1) accept such registered bonds or notes for
exchange for new registered bonds or notes registered in the same
name, or (2) accept such registered bonds or notes, notwithstanding
the assignment to the Secretary of the Treasury and the collector's
stamp or indorsement thereon, for transfer or exchange pursuant to
such subsequent assignments as may appear on such bonds or notes:
Provided, however, in either case, that such registered bonds or notes
are accompanied by an official certificate on Form 835 (Exhibit F),
attached hereto, signed by the collector of internal revenue concerned,
to the same efiect as the certificate prescribed in paragraph 13 hereof,
with reference to coupon bonds or notes. Registered bonds or notes
so tendered in payment of Federal estate or inheritance taxes and
erroneously assigned and stamped or indorsed must be forwarded b}^
the Federal Reserve bank to the Treasury Department, Division of
Loans and Currency, in regular course, and when forwarded must be
accompanied by the official certificate of the collector.
GENERAL. '

21. Until certificates of deposit are received by the collector, the
amounts of bonds or notes deposited must be carried as ^Tash on
hand," and not credited as ^'Collections," as the dates of the certificates of deposit determine the dates of collections.




284

REPORT ON T H E FINANCES.

22. The Secretary of the Treasury may amend or withdraw the
foregoing regulations in whole or in part at any time.
D. F . HOUSTON,

Secretary of the Treasury.
EXHIBIT

A.

TREASURY DEPARTMENT,^
INTERNAL REVENUE,
FORM 760 (REVISED),

AFFIDAVIT OF OWNERSHIP OF BONDS/NOTES.
STATE OF

County of

ss:

We (I),
, the undersigned execut
, adrninistrat
,
beneiiciar
, legal representative of t h e estate of
, deceased, who died on
, . 1 9 . . . , do severally swear that the b o n d . . /
n o t e . . described below bearing interest at a higher rate than 4 per centum per annum was (or were) each owned by the decedent continuously for at least six months
prior to the date of his (or her) death, and upon such date constituted part of his (or
her) estate, and that the following statements with respect to each such bond/note
are true to the knowledge of deponent, to wit:
.
.

Description of issue (use
short titles ofloans).

Coupon or
registered.

Name of registered holder (in
the case of registered bonds
or notes).

Date of
acquisition
by
decedent,*

Serial
number.

Face •
value.

(Each bond or note must be entered separately.)
(Signature.)

(Signature.)

(Address for mail.)

(Address for mail,)

Subscribed and sworn to before me at
,19....

this . . . . . . day of
•

[SEAL.]

Notary Public, Deputy Collector.
* See paragraph 3 of Department Circular No. 225, dated
unlmown, supplemental affidavit should be attached stating
of acquisition may be inferred. Statements not within the
unless sources of information and grounds of behef are given




Jan, 31, 1921. Where date of acquisition is
all facts and circumstances from vvhich date
knowledge of deponent will be disregarded
in full.

285

SECRETARY OF T H E TREASURY.
EXHIBIT

B,

TREASURY DEPARTMENT,
DIVISION OF LOANS AND CURRENCY.

Form L. & C, 90.
(Ed. 50,000—Sept. 16, 1918.)

L I B E R T Y LOAN I N T E R E S T TABLE F O R 4 i P E R CENT BONDS,
Interest on ^100 at 4 \ per cent per annum, payable semiannually {2\ per cent
per half year).
. [Tables prepared by Government Actuary.]

NOTE,—Interest on United States bonds is computed on actual days basis within
t h e interest period. For any given interest computation t h e appropriate column to
be used may be determined from the following:
NUMBER OP DAYS I N EACH HALF YEAR.

H a l f year ending the 15th day of—
Regular years—
Days.
March, May, July, August
181
April, June
182
October, December
183
January, February, September,
November
184

Leap years—
Days.
March, May, July, August
182
April, June, October, December. 183
January, February, September,
November
.'
184

Half year of
181 days.

Half year of
182 days.

Half year of
183 days.

$0.01174033
. 02348066
, 03522099
. 04696133
. 05870166

$0.01167582
. 02335165
. 03502747
. 04670330
.05837912

$0.01161202
. 02322404
. 03483607
. 04644809
. 05806011

$0.01154891
. 023097S3
. 03464674
. 04619565
. 05774457

. 07044199
. 08218232
. 09392265
. 10566298
.11740331

.07005495
. 08173077
. 09340659
. 10508242
. 11675824

.06967213
.08128415
. 09289617
. 10450820
. 11612022

. 06929348
. 08084239
. 09239130
. 10394022
. 11548913

. 12914365
. 14088398
.15262431
.16436464
. 17610497

. 12843407
. 14010989
. 15178571
- . 16346154
. 17513736

. 12773224
. 13934426
.
. 15095628
.
, 16256831
.17418033

.12703804
. 13858696
. 15013587
. 16168478
. 17323370

19
20

. 18784530
,19958564
. 21132597
. 22306630
. 23480663

. 18681319
. 19848901
. 21016484
. 22184066
.23351648

. 18579235
. 19740437
. 20901639
. 22062842
. 23224044

. 18478261
. 19633152
. 20788043
, 21942935
. 23097826

21
22
23
24
25

. 24654696
, 25828729
. 27002762
.28176796
.29350829

. 24519231
. 25686813
. 26854396
. 28021978
. 29189560

. 24385246
. 25546448
. 26707650
. 27868852
. 29030055

. .24252717
,25407609
. 26562500
. 27717391
. 28872283

. 30524862
.31698895
. 32872928
. 34046961
. 35220994

. 30357143
. 31524725
. 32692308
. 33859890
. 35027473

. 30191257
.31352459
.32513661
.33674863
.34836066

. 30027174
. 31182065
, 32336957
. 33491848
. 34646739

.36395028
.37569061
. 38743094
. 39917127
. .41091160

. 36195055
.37362637
.38530220
. 39697802
. 40865385

.35997268
.37158470
.38319672
.39480874
.40642077

.35801630
.36956522
.38111413
. 39266304
. 40421196

.42265193
. 43439227
. 44613260
. 45787293
. 46961326

. 42032967
. 43200549
. 44368132
. 45535714
. 46703297

.41803279
. 42964481
. 44125683
. 45286885
. 46448087

. 41576087
. 42730978
. 43885870
. 45040761
. 46195652

Days.

1
2
3
4
5

. . .

6
7....
8
9
10
11
12.
13
14
15

!
:
. . . . . .
...

: ..

.
.

.

.

16
17

18

26
27
28
29
30
31
32
33
34
35

f
:
..

...

.

.

..

36 ...
37
38
39
40

..
:




Half year of
184 days.

286

REPOBT ON THE FINANCES.

Half year of
181 days.

Days.

$0,47350543
. 48505435
. 49660326
.50815217
.51970109

.

.

.

..

76
77

78
79
80
81
82
83
84
85

1
:

'....

86
87
88
89
90
91
92
93
94
95

:
.
:

96
97
98
99
100

. . .
. .

.
.

. .

. .




.•

.58899457
.60054348
,61209239
,62364130
,63519022

,65384615
,66552198
. 67719780
.68887363
, 70054945

,65027322
,66188525
.67349727
, 68510929
, 69672131

.64673913
. 65828804
. 66983696
. 68138587
.69293478

. 71222527
. 72390110
, 73557692
. 74725275
,75892857

, 70833333
.71994536
.73155738
, 74316940
,75478142

.70448370
.71603261
.72758152
. 73913043
. 75067935

.77486188
.78660221
.79834254
. 81008287
. 82182320

,77000440
. 78228022
.79395604
. 80563187
. 81730769

, 76639344
,77800546
.78961749
, 80122951
, 81284153

. 76222826
. 77377717
. 78532609
.7968750 <
. 808423^1

-, 82898352
, 84005934
. 85233516
. 86401099
. 87568681

. 82445355
. 83606557
, 84767760
. 85928962
. 87090164

.81997'83
. 83152174
.8430 065
.85461957
,86616848

. 88736264
, 89903846
. 91071429
. 92239011
. 93406593

. 88251366
. 89412568
.90573770.
.91734973
.92896175

.87771739
.88926630
.•90081522
. . 91236413
. 92391304

. 95096685
.96270718
. 97444751
. 98618785
. 99792818

. 94574176
. 95741758
. 96909341
, 98076923
, 99244505

,94057377
,95218579
, 96379781
, 97540984
, 98702186

. 93546196
. 94701087
. 95855978
.97010870
.98165761

1. 00412088
1,01579670
1,02747253
1,03914835
1, 05082418

, 99863388
.1,01024590
1.02185792
1.03346995
1.04508197

. 99320652
1,00475543
1.01630435
1.0278532&
1,03940217

1. 06250000
1.07417582
1.08585165
1.09X^2747
1.10920330

1.05669399
1.06830601
1.07991803.
1.09153005
1.10314208

1,05095109
1. 06250000
1,07404891
1,085597831.09714674

1.12707182
1,13881215
1,15055249
1,16229282
1.17403315

1.12087912
1.13255495
1.14423077
1.15590659
1,16758242

1.11475410
1.12636612
1.13797814
. 1,14959016
1,16120219

1,10869565
1.12024457
1.13179348
1.14334239
1.15489130

1,18577348
1,19751381
1,20925414
1,22099448
1.23273481

...
. . . . .

,59221311
.60382514
,61543716
.62704918
,63866120

1. 06837017
1.08011050
1,09185083
1,10359116
1.11533149

.. .

• ,59546703
,60714286
,61881868
,63049451
. 64217033

. 83356354
. 84530387
. 85704420
. 86878453
. 88052486

66
67
68
69
70

.53125000
.54279891
,5543478a
,56589674
,57744565

. 71616022
, 72790055
. 73964088
.75138122
.76312155

....

, 53415301
,54576503
,55737705
,56898907
. 58060109

1.00966851
1.02140884
1.03314917
1.04488950
1.05662983

61
62
63
64
65

. 53708791
. 54876374
.56043956
. 57211538
• ,58379121

, 65745856
. 66919890
. 68093923
, 69267956
, 70441989

-

SO, 47609290
, 48770492
.49931694
, 51092896
, 52254098

. 89226519
. 90400552
. 91574586
92748619
, 93922652

56
57
58
59
60

.$0.47870879
,49038462
, 50206044
. 51373626
. 52541209

. 59875691
. 61049724
,62223757
. 63397790
. 64571823

:

51
52
53
54
55

106
107
108
109. .
110

Half year of
184 days.

SO. 48135359
. 49309392
. 50483425
, 51657459
,52831492

. . . .

46
47
48
49
50

101
102
103
104
105

Half year of
183 days.

.54005525
, 55179558
, 56353591
, 57527624
, 58701657

41
42
43
44
45

71
72
73
74
75.

Half year of
182 days.

1.17925824
1.19093407
1.20260989
1.21428571
1.22596154

1.17281421
• 1,18442623
1,19603825
1.20765027
1.21926230

1,16644022
1,17798913
1,18953804
1.20108696
1,21263587

1,24447514
1.25621547
1, 26795580
1.27969613
1.29143646

1.23763736
1.24931319
1.26098901
1, 27266484
1, 28434066

1.23087432
1. 24248634
1.25409836
1.26571038
1.27732240

1.22418478
1,23573370
1.24728261
1.25883152
1,270380^3

287

SECRETARY OF T H E TREASXJE.Y.
Half year of
181 days.

Days.
111.
112

11.3

ii4"i."!!!il!!!!!.
115
116.

:

Half year of
182 days.

Half year of
183 days.

SI. 30317680
1.31491713
1.32665746
1,33839779
1,35013812

SI.29601648
1. 30769231
1,31936813
1,33104396
1,34271978

SI. 28893443
L 30054645
1.31215847
1.32377049
1.33538251

Half year of
184 days.
SI,28192935
1,29347826,
1,30502717
.1,31657609
1,32812500

m
1.34699454
1. 35860656
1,33967391
1,35122283
1.37021858
1.36277174
118.
1. 38183060 ^.- 1.37432065
119
1. 39344262
1,38586957
120
•.:...
...•.
1,39741848
1. 40505464
1,41277473
1.42058011
121
1, 41666667
1,42445055
1.43232044
1,40896739
122. ...
1. 42827869
1,43612637
1.44406077
1,42051630
123
1,44780220
1, 43989071
1. 45580110
1,43206522
124
1,45947802
1,45150273
1.46754144
1,44361413
1,45516304
1. 46311475
1.47928177 . 1.47115385
126
1,48282967
1-. 47472678
1.49102210
1,46671196
127
1,49450549
1,48633880
1.50276243
1.47826087
128
1,50618132
1, 49795082 . 1.48980978
1.51450276
1,51785714
1.50956284
1,52624309
1.50135870
130
:
1.51290761
1, 52953297
1. 52117486
1, 53798343
131
!.
1, 54120879
1. 53278689
1, 54972376
1. .52445652
1,55288462
1.54439891
1. 56146409
1.53600543
1, 56456044
1.55601093
1. 57320442
1,54755435
134
. . . . . . . . . [ . . . . .
1.57623626
1,56762295
1. 58494475
1.55910326
135
1.57065217
1.58791209
1.57923497
1,59668508
-1.59084699
1.59958791
1,60842541
1.58220109
137
1.60245902
1.61126374
1.59375000
138..
.... 1,62016575
1.61407104
1,62293956
. 1,63190608
1.60529891
1.62568306
1,63461538
1,64364641
1.61684783
1.62839674
1.64629121
1.63729508
1,65538674
141. ...
1.65796703
1.64890710
1.66712707
1.63994565
142:
1.66964286.
1.66051913
1.67886740
1.65149457
143
1.68131868
1.67213115
1.69060773
1.66304348
144
1.69299451 . 1.68374317
1.70234807
1.67459239
145
1.68614130
1.69535519
1.70467033
1.71408840
1.70696721
1.71631615
1.72582873
1.69769022
147
1.71857923
1.72802198
1.73756906
1.70923913
148
;
1.73019126
1.73969780
1.749309391.72078804
149.
1.74180328
1.75137363
1.76104972
1.73233696
150
1.74388587
1.75341530
1.76304945
1.77279006
151
:
1.76502732
1.77472527
1. 78453039
1.75543478
152
1.78640110
1.77663934
1.79627072
1.76698370
1.79807692
1.78825137
1.80801106
1.77853261
154
•
.
1.80975275
1.81975138
1.79986339
1.79008152
155
1.80163043
1.82142857 . 1.81147541
,1.83149171
156
1.83310440
1.82308743
1.84323204
1.81317935
157
1.84478022
1.83469945
1.85497238
1.82472826
158. .
1.85645604
1.84631148
, 1.86671271
1.83627717
159
1.86813187
1.857C2350
1.87845304
1.84782609
1.85937500
1.86953552
1.87980769
1.89019337
161
:...
:
1.88114754
1.89148352
1.90193370
1.87092391
162
1.90315934
1,89275956
1.91367403
1.88247283
163
1.91483517
1,90437158
1.92541436
1.89402174
164
1.92651099
1,91598361
1.93715470
1.90557065
165
'
.
1.91711957
1.93818681
1,92759563
1,94889503
166
1,93920765
1.94986264
- 1.92866848
167
1,96063536
1.95081967
1.96153846
1.94021739
168:
1,97237569
1.96243169
1.97321429
1.95176630
169.
1,98411602
1.97404372
1,98489011
1.96331522
1,99585635
170
1.97486413
1.98565574
1,99656593
2.00759669
1.99726776
1.98641304
2.00824176
2.01933702
172
2.00887978
2.01991758
1.99796196
2.03107735
173
2.02049180
2.00951087
2.03159341
2.04281768
2.03210383
2.04326923
'2.02105978
2.05455801
2.03260870
2.05494505' 2.04371585
2.06629834
176
2.06662088
2.05532787
2.07803867
2.04415761
177. .
2.07829670
2.06693989
2.08977901
2.05570652
178
2.08997253
2.10151934
2.07855191
2.06725543
179.'
2.10164835
2.07880435
2.11325967
2.09016393
180
2.09035326
2.10177596
2.11332418
2.12500000
2.11338798.
2.12500000
2.10190217
182
:
2.12500000
2.11345109
183
2.12500000
184
Ill




1, 36187845
1,37361878
1,38535912
1,39709945
1,40883978 •

1. 35439560
1.36607143
1.37774725
1.38942308
1,40109890

288

EEPOET OiT T H E FINANCES.
Example.

$10,850 Third 4is tendered in payment of estate taxes January 5, 1921,
Interest payment dates on Third 4^s are shown on t h e face thereof to be March 15
and September 15 i n each year.
Current half year interest period therefore ends March. 15, 1921,
The year 1921 being a ''regular" (not a " l e a p " ) year, find " M a r c h " in the list at
head of table under '' Regular years.'' This list shows that t h e half year ending March
15 in a regular year has 181 days.
Compute number of days since t h e beginning of such half year t h a t have expired to
date of tender of bonds, thus:
1920.

Days.

Sept. 15 to Sept. 30
October
November
December

:.

15
31
30
31

1921,

January

*.

5

Total

112

Enter table headed "Half year of 181 days" (second column) and seek in that column
the amount of interest on $100 for 112 days. This will be found opposite t h e figure
"112" (days) in first column, and proves to be $1,31491713, which is t h e decimal for
$100 for 112 days.
The amount of bonds presented being $10,850, the decimal above stated must be
multiplied b y 108.5; the result is $142.6685, which is t h e amount of accrued.interest
.due on January 5, 1921, on $10,850 Third 4is;'accordingly t h e bonds are worth for
estate taxes $10,992.67.
Fractions of cents if less than ^ cent, will be disregarded; if J cent or more, will be
counted as 1 cent.
EXHIBIT C.
TREASURY DEPARTMENT,
DIVISION OF LOANS AND CURRENCY.
FORM L . & C, 226.

VICTORY L I B E R T Y LOAN.
INTEREST

TABLE

FOR 4 |

P E R CENT VICTORY N O T E S
INHERITANCE T A X E S .

RECEIVED

FOR ESTATE

OR

[Prepared by Governinent actuary.]
NOTE.—Interest on Victory notes is computed on actual days' basis within the
interest period. For any given interest cornputation, t h e appropriate column to be
used may be determined from t h e following:
NUMBER OF DAYS IN EACH HALF ..YEAR.

Half year ending the 15th day of^
Regular years—'
June
December




Days, | Leap years—
182
June
183 |
December

Days,
183
183

289

SECRETABY OF T H E TKEASUEY.

Interest on $100 at 4f per
cent per a n n u m , payable
semiannually (2| per cent
per half year).
N u m b e r of days.
Half year of
182 days.

1
2..
3
4
5

SO, 0130495
. 0260989
. 0391484
. 0521978
.0652473

Interest on $100 at 4 1 per
cent per a n n u m , payable
semiannually (2| per cent
per half year).
N u m b e r of days-.
Half year of
182 days.

Half year of
183 days.

$0,8612637
. 8743132 .
. 8873626
. 9004121
. 9134615

66
$0,0129781
.0259563 • 67
. 0389344 68......
69......
.0519126
70
.0648907

Half year of
183 days.
$0.8565574
.8695355
. 8825137
. 8954918
.9084699

. 9265110
. 9395604
. 9526099
. 9656593
. 9787088

. 9214481
. 9344262
. 9474044
. 9603825
.9733607

76
77
78
79..........
80

. 9917582
1. 0048077
1. 0178571
1,0309066
1. 0439560

.9863388
. 9993169
1,0122951
1.0252732
1.0382514

. 2076503
. 2206284
. 2336066
. 2465847
. 2595628

81
82
83
84
85...-

1, 0570055
1.0700549
1.0831044
1,0961538
1.1092033

1,0512295
1,0642077
1.0771858
1,0901639
1,1031421

. 2740385
. 2870879
. 3001374
.3131868
. 3262363

. 2725410
. 2855191
. 2984973
. 3114754
. 3244536

86
87
88
89
90

1,1222527
1,1353022
1,1483516
1,1614011
1.1744505

1,1161202
1,1290984
1,1420765
1.1550546
1.1680328

. 3392857
. 3523352
. 3653846
. 3784341
. 3914835

. 3374317
. 3504098
. 3633880
. 3763661
. 3893443

91
92
93
94
95

1,1875000
1.2005495
1,2135989
1. 2266484
1.2396978

1.1810109
1.1939891
1,2069672
1.2199454
1.2329235

35

. 4045330
.'4175824
.4308319
.4436813
. 4567308

. 4023224
. 4153005
. 4282787
. 4412568
. 4542350

96
97
98
99
100

1, 2527473
1,2657967
1, 2788462
1,2918956
1,3049451

1.2459016
1.2588798
1.2718579
1.2848361
1.2978142

36
37
38
39
40

. 4697802
. 4828297
.4958791
. 5089286
. 5219780

.4672131
.4801913
.4931694
. 5061475
, 5191257

101
102
103
104
105

1,3179945
1,3310440
1,3440934
1,3571429
1.3701923

1.3107923
1.3237705
1.3367486
1,3497268
1. 3627049

41
42
43

. 5350275
. 5480769
. 5611264
. 5741758
. 5872253

.5321038
. 5450820
.5580601
.5710383
.5840164

108
107
108
109
110.

1.3832418
1,3962912
1,4093407
1,4223901
1, 4354396

1, 3756a31
1. 3886612
1, 4016393
1, 4146175
1, 4275956

. 6002747
. 6133242
. 6263736
. 6394231
. 6524725

.5969945
.6099727
.6229508
.6359290
.6489071

Ill
112
113
114
115

1, 4484890
1, 4615385
•1,4745879
1, 4876374
1. 5006868

1,4405738
1, 4535519
1,4665301
1,4795082
1,4924863

. 6655220
. 6785714 •
. 6916209
. 7046703
. 7177198

.6618852
.6748634
.6878415
.7008197
.7137978

116
117
118.....
119
120

1, 5137363
1, 5267857
1. 5398352
1, 5528846
1.5659341

1, 5054645
1,5184426
1,5314208
1,5443989
1,5573770

.7307692
. 7438187
. 7568681
. 7699176
. 7829670

.7267760
.7397541
.7527322
.7657104
.7786885

121
122
123
124
125

1. 5789835
1,5920330
1,6050824
1,6181319
L6311813

1,5703552
1, 5833333
1. 5963115
1.6092896
1.6222678

1, 6442308
1, 6572802
1, 6703297
1,6833791
1.6964286

1.6352459
1.6482240
1.6612022
1.6741803
1.6871585

6
7
8
9
10

. 0782967
. 0913462
. 1043956
. 11744.51
.1304945

. 0778689
. 0908470
. 1038251
.1168033
•. 1297814

11
12
13
14
15

.1435440
.1565934
. 1696429
. 1826923
. 1957418

.1427596
. 1557377
.1687158
.1816940
. 1946721

16
17
18
19
20

. 2087912
. 2218407
. 2348901
. 2479396
. 2609890

21
22
23
24
25
26
27
28
29
30
31
32

33

45
46
48
49
50
51
52
53
55
56
58
59
€0
61
62
^65

" "

. 7960165
• .8090659
. 8221154
. 8351648
. 8482143

70073—FI 1921-

'10




71.
72
73
74
75

126
.7916667
. 8046448 * 127
128
.8176230
. 8306011 129
. 8435792 130

:
-....

.

290:

EEPOET ON THE FINANCES.
Interest o n $100 at 4f per
cent per a n n u m , payable
semiannually (2| per eent
per half year.)

N u m b e r of days.

'/
Half year of
182 days.

131:;
132
133
134
135. . . . .

Half year of
183 days.

$1.7094780
1.7225275
1. 7355769
1, 7486264
1. 7616758

137

138
139

140

$1.7001366
1.7131148
1.7260929
1. 7390710
1.7520492

1, 7747253
, 1.7877747
. 1.8008242
. 1.8138736
1, 8269231

136

1,7650273
1,7780055
1,7909836
1,8039617
1.8169399

141
142.
143

1, 8399725
1, 8530220
1, 8660714
1,8791209
1, 8921703

1, 8299180
1, 8428962
1,8558743
1. 8688525
1. 8818306

148
149. ...
150. .

1,9052198
1,9182692
1,9313187
1.9443681
1, 9574176

1, 8948087
1,9077869
1,9207650
1,9337432
1.9467213

151.1
152
153
154
155.-

1, 9704670
1.9835165
1,9965659
2,0096154
2, 0226648

1.9596995
1.9726776
1,9856557
1.9986339
2,0116120

156
157

2, 0357143
2,0487637

2, 0245902
2,0375683

144
145
146

147

N u m b e r of days.

Interest on $100 at 4f per
cent per a n n u m , payable
semiannually (2| per cent
per half year.)
Half year of
182 days.

Half year of
183 days.

$2,0618132
2,0748626
2,0879121

$2.0505464
2,0635246
2,0765027

•

; 2,1009615
2.1140110
2,1270604
2,1401099
2.1531593

2,0894809
'2.1024590
2.1154372
2.1284153
2.1413934

166...... . •.
167
168
169
170.:

2,1662088
• 2,1792582
2,1923077
2,2053571
2, 2184066

2,1543716
2.1673497
2,1803279
2,1933060
' 2,2062842

2,2314560
2,2445055
2,2575549
2,2706044
2,2836538

2, 2192623
2,2322404
2,2452186
2.2581967
• 2.2711749

2,2967033
2,3097527
2, 3228022
2,3358516
2,3489011

2,2841530
2,297i311
2.3101093
2. 3230874
2,3360656

2,3619505
2,3750000

2,3490437
2.3620219
2,3750000

158
159
160
161
162
.163
164
165

.

171
172
173
174
175
176
177
178
179
180
181
182
183

.

.
"

.

. .

Example.
|llj350 4f per cent Victory notes tendered in payment of estate taxes, January 5,
1921.
'
,
Interest payment dates on Victory notes are shown on the face thereof to be June
15 and December 15 in each year, and at maturity.
Current half-year interest period therefore ends June 15, 1921.
The year 1921 being a regular year, find "June" in the list at head of table under .
''Regular year." This list shows that the half year ending June 15, in a regular year,
has 182 days.
Compute number of days since the beginning of such half year that have expired
to date of tender of^note, thus:
1920.

•

December 15 to December 31
•

Days.

16

1921.

January

5

TotaL
.....:
.21
Enter table headed ''Half year of 182 days" (second column) and seek in that
column the amount of interest on $100 for 21 days. This will be found opposite the
figure "21" (days) in the first column, and proves to be $0.2740385, which is the decimal
for $100 for 21 days.
The amount of notes presented being $11,350, the decimal above stated must be
multiplied by 113.5; the result is $31.1034, which is the amount of accrued, interest
. due on January 5,1921, on $11,350 Victory 4f's—accordingly, the notes are worth for
estate taxes, $11,381.10.
Fractions of cents, if less than J cent, will be disregarded; if J cent or more, will be
' counted as 1 cent.




291

SECRETARY OF T H E TREASURY.
EXHIBIT D .
TREASURY DEPARTMENT,
INTERNAL REVENUE.
FORM 761 (revised).

SCHEDULE OF COUPON B O N D S / N O T E S R E C E I V E D BY COLLECTOR I N
PAYMENT OF E S T A T E OR INHERITANCE T A X E S AND TRANSMITTED
TO F E D E R A L R E S E R V E B A N K .
:

•

»i9....

Schedule of United States coupon

, received b y

'

-...,

"(Short title of issue.)"

collector of internal revenue of the . . . . . . . . . . . . . district of
of estate (or inheritance) taxes on the estate of
on the above date to the Federal Reserve Bank of
(Signed)

, i n payment
, and transmitted
^

,
Collector.

<Use SeparateSchedule for EachlSSUE of Bonds/Notes. Enter Each Bond/Note of Such Issue Separately,)
Serial No, of
bond/note.

Face value.

Accrued interest.

Total (amount for
which accepted for
taxes).

Date accepted by
collector.

^

......

Total
FEDERAL RESERVE B A N K OF

19...
I hereby certify t h a t I have examined and forwarded to t h e Treasurer of the United
States t h e above-described bonds/notes, which were received from t h e collector.
named, amounting to. $
- - . - - - , principal, and $
- . . - . - accrued interest,
which amounts have been charged and credited in the Treasurer's general account
this day pursuant to the regulations of the Treasury Department,
Cashier.
•EXHIBIT E .
TREASURY DEPARTMENT,
INTERNAL REVENUE,
FORM 834.

CERTIFICATE OF ERRONEOUS INDORSEMENT O F COUPON B O N D S / N O T E S .
TREASURY

DEPARTMENT,

INTERNAL R E V E N U E

BUREAU,

Office of the Collector of Internal Revenue,
,
District of
Date
THE

SECRifeTAR'x OP THE T R E A S U R Y :

-

Referring to couppn

as follows:

i .

(Use short titleof loan,)*
Serial Nos.

Denomination.

Date of next maturing
coupon attached.

Total face amount of
bonds/notes.

^

*A separate form must ^e executed for each issue of bonds/notes.




292

REPORT ON THE FINANCES.

The above-described bonds/notes have affixed the i^Sorsement of this office to t h e
effect that the same have been received in payment of estate (or inheritance) taxes on
t h e estate of
I t is hereby certified t h a t such stamp or indorsement was affixed in error; that the
undersigned is familiar with the circumstances leading to such error, and that none
of the above-described bonds/notes has been accepted by this office in payment of
estate (or inheritance) taxes on the estate of the above-mentioned.o
(Signed)
Collector of Internal Revenue.
[SEAL.]

'.

District of

EXHIBIT F .
TREASURY DEPARTMENT,
INTERNAL REVENUE,
FORM 835.

CERTIFICATE OF ERRONEOUS INDORSEMENT OF REGISTERED
BONDS/NOTES.
TREASURY DEPARTMENT,
INTERNAL R E V E N U E B U R E A U ,

Office of Collector-of Internal Revenue,
District of
Date
T H E SECRETARY OP THE T R E A S U R Y :

Referring to registered

as follows:
(Use short title of loan.)*

Name ofregistered holder.

Serial Nos.

Denomination.

Total face amount of
bonds/notes.

*A separate form must be executed for each issue of bonds/notes.

The above-described bonds/notes have affixed the i i ^ £ e m e n t ^^ *^^® office to the
effect that the same have been received in payment of estate (or inheritance) taxes
on the estate of '.
I t is hereby certified that such stamp or indorsement was affixed in error; that the
undersigned is familiar with the circumstances leading to such error, and that notwithstanding any assignment to " T h e Secretary of t h e Treasury for redemption in payment of estate (or inheritance) t a x e s " which may appear thereon, none of the abovedescribed bonds/notes has been accepted by this office in payment of estate (or inheritance) taxes on the estate of the above-mentioned.
(Signed)
:.
Collector of Internal Revenue.
[SBAL.]
District of




293

SECEETAEY OF THE TEEASURY.
EXHIBIT G .
(Face,)
Group as
Paid Checks.

Second Sort
Symbol 17209-3,

First Sort
General Ledger Section,

TREASURY DEPARTMENT,
TREASURER'S OFFICE.
Division of General Accounts.

DEBIT V O U C H E R .

FORM N-2.

B O N D S / N O T E S R E T U R N E D TO COLLECTOR OP INTERNAL R E V E N U E AS UNACCEPTABLE.

, 19...of
(Name of Federal Reserve Bank or branch.)

Debit has been made this day in transcript of Treasurer's general account for coupon
bonds/notes deposited by t h e Collector of Internal Revenue on account of payment of
estate (or inheritance) taxes, and returned (or an equivalent amount of bonds/notes
of the same issue delivered) to the Collector as not acceptable, as per receipt on reverse
hereof, in the amount of

$
Cashier.

NOTE.—Forward with transcript in support of entry.
(Reverse.)

Received

, 19

, from
(Federal Reserve Bank or branch.)

coupon bonds or notes as described below, the amount of which, plus accrued interest
. as stated, Avas included in "^certificate of deposit No
, issued by said b a n k
under date of
, 1 9 . . . . , in the amount of $

BONUS OR NOTES
Loan,
(Use short title,) . Serial Nos.

Denomination,

RECEIVED.

Par value.

Accrued interest.

Total.

»
•
Total

$

*A separate voucher to be executed covering each certificate of deposit.
. . . . District of




Collector of Internal Revenue.

294

REPORT

O N THE
EXHIBIT

FINANCES.
H.

P E R I O D S D U R I N G W H I C H T R A N S F E R B O O K S A R E CLOSED POR THE VARIOUS I S S U E S OP
L I B E R T Y B O N D S AND VICTORY N O T E S R E C E I V A B L E POR E S T A T E OR I N H E R I T A N C E
TAXES.

Closed periods.
Short title.

Title of bonds/notes.

From To openclose of
ing of
business. business.

First Liberty Loan converted 4J per cent bonds of 1932-47
First 4J's .. .
/May 15
First Liberty Loan second converted 4iper ceiit bonds of 1932-47.. First Second 4i's.. \Nov. 15
/Apr. 15
Second 4^'s
Second Liberty Loan converted I j per cent bonds of 1927-42
\Oct, 15
/Feb, 15
Third Liberty Loan 4^ per cent bonds of 1928 . . .
Third 4i's .
\Aug, 15
/Mar, 15
Fourth 4J's
Fourth Liberty Loan 4^ per cent bonds of 1933-38 ...
\Sept, 15
May 15
Nov, 15
and
from
Victory Liberty Loan 4f per cent convertible gold notes of 1922-23. Victory 4^'s
close of
business
Apr, 20,
1923,

June
Dec,
May
Nov,
Mar.
Sept.
Apr.
Oct.
June
Dec.

16
16
16
16
16
16
16
16
16
16

NOTE,—If the closing date falls on a Sunday or legal holiday the transfer books will close on the preceding
day; if the opening date falls on Sunday or legal holiday the books will open on the following day.

EXHIBIT

I.

19..
(Date.)
SECRETARY OP T H E

TREASURY,

Division of Loans and - Currency,
Washington, D . C :
First four and one-quarters,
First Second four and one-quarters,
inscribed
Stop interest) Second four and one-quarters,
(Name of registered owner.)
on registered' Third four and one-quarters.
Fourth four and one-quarters,
[victory four and three-quarters,
, this day received
late of
...
., aggregate face v a l u e . . .
(Post Office Address.)

(Total par value of bonds/iiotes.)

for estate (or inheritance), taxes... Bonds,(notes) bear.serial.numbers..
" Collector.
(Bonds/notes of only one owner and of one issue in one advice.)
[Sample of above telegram.]
.
SECRETARY OP T H E

GmcAGO, May 14, 1921.
TREASURY,

Division of Loans and Currency,
.
Washington, D . C :
Stop interest on registered First second four and one-quarters inscribed John Doe,
late of Eighty-One Main Street, JonesviHe, Illinois, aggregate face value four thousand
four hundred fifty dollars tliis day received for estate taxes. Bonds bear serial
numbers nine thousand six fifty one, two, three, .and four of one thousand dollars each
seven hundred one thousand three thirty seven, eight, nine and forty of one hundred
dollars each, and two million nine hundred thousand and six of fifty dollars.




RICHARD R O E ,

Collector.

295

SECEETAEY OF T H E TEEASTJRY.
E X H I B I T J.
TREASURY DEPARTMENT,
INTERNAL REVENUE.
FORM 762 (Revised).

SCHEDULE OP REGISTERED B O N D S / N O T E S R E C E I V E D BY COLLECTOR IN PAYMENT OP
ESTATE (OR INHERITANCE) T A X E S AND TRANSMITTED TO THE SECRETARY OP THE
TREASURY, DIVISION OP LOANS AND CURRENCY.

^
^
..,19....
Schedule of United States registered bonds/notes
LibertyLoan
per cent, dated
,19
, due 19
, received b y
,• collector of internal revenue of the
district of
,
in payment of estate (or inheritance) taxes on the estate of
, and
transmitted on the above date to the Secretary of the Treasury, Division of Loans and
Currency.
(Signed)
Collector.
(Use separate schedule for each ISSUE of bonds/notes . Enter each bond/note of such issue separately.)

Serial No.

Name of registered owner.

Date of
death of
registered
owner.

Total (amount Date acac- cepted by
Face value. Accrued ' for whichfor
interest.
cepted
collector.
taxes).

• . r"

EXHIBIT K .
TREASURY DEPARTMENT,
LOANS AND CURRENCY.
F O R M L . & C. 122,
:

•-• •
.-

..

,

.
•-<•:• ;
TREASURY DEPARTMENT,
;
OPPICE OP THE SECRETARY,
DIVISION OP LOANS AND CURRENCY,

. Washington,
The

-

,19

,

•
,

'

T R E A S U R E R OP THE U N I T E D STATES.

SIR: YOU are advised that the attached b o n d . . / n o t e . , registered in the name of
received b y the collector of internal revenue,
district of
, in payment of estate or inheritance taxes on the. estate
of said registered owner, have been examined and found to be duly assigned to the
Secretary of the Treasury for redemption in payment of estate (or inheritarice) taxes,
and to be receivable in payment of such taxes at the values shown i n the following
table:
Serial No.

Description of issue.

Face value.

Accrued interest.

Total value for payment of tax.

•
•
•
1
(Bonds/notes of only one owner on each form.

Each bond/note must be entered separately.)

Total
Respectfully,




Chief, Division of Loans and Currency.

298

REPORT ON T H E FINANCES.
EXHIBIT

54.

[Department Circular No, 239, Loans and Currency,]
VICTORY L I B E R T Y LOAN SUBSCRIPTIONS I N D E F A U L T .
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,

Washington, May 11, 1921.
Pursuant to the provisions of Treasury Department Circular No.
138, dated April 21, 1919, any and all installment payments made to
the. Treasury Department or to a Federal Reserve Bank upon subscriptions to 4 | per cent Convertible Gold Notes of 1922-1923 or
3f per cent Convertible Gold Notes of 1922-1923 of the Victory
Liberty Loan filed with an official agency designated in said circular,
upon which notes have been allotted, and upon which ohe or more of
the subsequent installment payments due pursuant to such circular
and allotment have not been paid, are hereby declared to be forfeited
to the United States; and such subscriptions and all right and interest
in the notes allotted thereon are hereby declared to be forfeited
because of the failure to make payments when and as required by
said circular.
Pursuant to the provisions of said Treasurv Department Circular
No. 138, dated April 21., 1919, and the Regulations dated April 21,,
1919, defining special arrangements for subscriptions to 4 | per cent
notes of the victory Liberty Loan from persons in the military or
naval forces of the United States, any and all installment payments
Iriade by reservations of pay or checkages against accounts upon
subscriptions to 4 i per cent Convertible Gold Notes of 1922-1923
of the Victory Liberty Loan filed by persons in the military or naval
forces of the United States in accorclance with such regulations, upon
which notes have been allotted, and upon which one or more of the
subsequent installment paynaents due pursuant to such regulations
and subscription have not been paid, are hereby declared to be forfeited to the United States; and such subscriptions and all right and
interest in the notes allotted thereon are hereby declared to be forfeited because of the failure to make payments when and as required
by such regulations: Provided, however. That no forfeiture shall occur
hereunder in respect to subscriptions on which checkages or reservations have been terminated or reduced pursuant to such regulations, except for failure to make payments when and as required by
such regulations and reduced subscription.
Installment payments hereby forfeited shall be credited to the
general account of the Treasurer of the United States (if not already
credited) as '^Forfeited Victory Liberty Loan installment payments,''
and shall be covered into the Treasury to the credit of '^Miscellaneous
Receipts.'' Federal Reserve Banks will attach to every transcript
showing such credits a schedule giving with respect to each such subscription the name of the subscriber, the amount of notes allotted,
and the amount of the payment or payments received against the
subscription and therewith credited. If such installment payments
have already been credited to the general account of the Treasurer
of the United States, Federal Reserve Banks will forthwith send to
the Treasurer a like sche.dule to accompany the transcript on which
such credits appeared, identifying such transcript by date. Upon




297

SECRETARY OE THE TREASURY.

receipt of all such forfeited installment payments against any such
subscription, the allotment will be reduced accordingly by the face
amount of the forfeited subscription.
The Treasury Department or Federal Reserve Bank, as the case
may be, with which a subscription has been filed on which any
installment payment is forfeited pursuant hereto, will advise the
subscriber of the forfeiture by registered mail at the last known
address of such subscriber. The Treasury Department will arrange,
through the War Department or Navy Department, as the case may
be, to advise any person in the military or naval forces of the United
States, who subscribed pursuant to the above-described regulations,
of any forfeiture'hereunder, by registered mail at the last known
address of such subscriber.
A. W.

MELLON,

Secretary of tlie Treasury.
EXHIBIT

55.

[Department Circular No. 215. Loans and Currency.]

UNITED STATES OF AMERICA. . TREASURY SAVINGS SECURITIES,
SJSRIES OF 1921.
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,

Washington, D. C, December 15, 1920.
OFFERING OF UNITED STATES TREASURY SAVINGS SECURITIES, SERIES
OF 1921.
j

1. Under authority of Section 6 of the act of Congress approved
September 24, 1917, as amended and supplemented, the Secretary
of the Treasury offers for sale to the people of the jUnited States, during the calendar year 1921, Treasury Savings Seciurities for 1921, in
the form of a new series of United States War Savings Certificates,
in two issues, as follows: (a) War Savings Certificates, Series of 1921,
payments for or on account of which will be evidenced by War
Savings Certificate Stamps, Series of 1921, affixed thereto, in the
denomination of $5 (maturity value), hereinafter icalled War Savings
Stanips', Series of 1921; and (J) TMasiiry Savings Certificates, Series
of 1921, in registered form, in the denominations of $25, $100, and
$1,000 (maturity value), payments for or on account of which may
be evidenced by Treasury Savings Stamps affixed to Treasury Savings Cards, as hereinafter provided. War Savings Certificates, Series
of 1921, and Treasury Savings Certificates, Serie|s of 1921, are both
included in the Series of 1921 of United States War Savings Certificates. I t shall not be lawful for any one personjat any one time to
hold United States War Savings Certificates, Series of 1921 (of whatever issue or denomination) to an aggregate amount exceeding $1,000
(maturity value). The sum of United States War Savings Certificates of all series and issues outstanding shall n'ot at any one time
exceed in the aggregate $4,000,000,000 (maturity value). The two
issues comprising the Series of 1921 are hereinafter described in
further detail.




298

REPORT ON T H E FINANCES.
, DEFINITIONS—TREASURY SAVINGS SECURITIES, 1921.

Thrift Stamps are sold at 25 cents each, do not bear interest, and
should be affixed to a
Thrift Card, which may be obtained without cost, and which will
hold 16 Thrift Stamps. When the card is filled it will be accepted
as a payment of $4 toward the purchase price of a War Savings
Stamp.
Treasury Savings Stamps are offered for sale at $1 each. * They do
not bear interest and can not be registered, but should be affixed
to a
Treasury Savings Card, which is issued without charge and holds 20
stamps. Upori surrender of a Treasury Savings Card, each Treas-ury Savings Stamp then affixed thereto will be accepted as a payment of $1 on the purchase price of a War Savings Stamp or Treasury Savings Certificate, under the rules and regulations hereinafter provided.
War Savings Stamps, Series of 1921, issued to evidence payment on
a War Savings Certificate, Series of 1921, are sold in January,
1921, at $4.12, each. The price increases 1 cent each month during
the calendar year. War Savings Stamps must be affixed to a
War Savings Certificate, Series of 1921, which will mature January 1,
1926, when $5 will be paid b y the Government for each War
Savings Starop, Series of 1921, then affixed thereto. Each W a r
Savings Certificate will hold 20 War Savings Stamps, and becomes
an obligation of the United States when, and only when, one or
more such stamps shall be affixed thereto. War Savings Certificates are not transferable b u t are redeemable before maturity at
post offices at the rates stated on the certificates. They m a y be
registered at post offices, and may be exchanged for
Treasury Savings Certificates, Series of 1921, which mature January 1,
1926, are not transferable and are issued only in registered form, in
denominations of $25, $100, and $1,000 (maturity value), fully
registered in the name of the owner at the Treasury Department.
Treasury Savings Certificates are sold at prices which correspond
to the cost of a like maturity value of War Savings Stamps; for a
$25 certificate the price is the same as for 5 such stamps, for a
$100 certificate, 20 stamps, and for a $1,000 certificate, 200 stamps.
A G E N C I E S F O R T H E S A L E O F T R E A S U R Y SAVINGS SECURITIES.

2. Stamps.—War Savings Stamps, Series of 1921, Thrift Stamps,
and Treasury Savings Stamps may be purchased during the calendar
ear 1921, at the respective prices set forth herein, at the Treasury
department, Washington, at post offices. Federal Reserve Banks, and
incorporated banks and trust companies and others which are duly
qualined as agents for the sale of Treasury Savings Securities, Series
of 1921, and at authorized sales stations. War Savings Certificates,
Thrift Cards, and Treasury Savings Cards necessary for affixing the
appropriate stamps m a y be obtained without cost at the time of
purchase of the respective stamps.
3. Treasury Savings Certificates.—Tresisuvj Savings Certificates,
Series of 1921, in the denominations of $25 and $100 (maturity value),
may be purchased during the calendar year 1921, at the prices here-

J




SECRETARY OF THE TREASURY.

299

inafter mentioned, at post offices of the first and second class, and
such other post offices as the Postmaster General may from time to
time designate for that purpose; and Treasury Savings Certificates,
Series of 1921, in denominations of $25, $100, and $1,000 (maturity
value), may be purchased during the calendar year 1921, at the prices
hereinafter mentioned, at the Treasury Department, Washington,
the Federal Reserve Banks, and incorporated banks and trust companies and others which are duly qualified as agents for the sale of
Treasury Savings Certificates, Series of 1921.
WAR SAVINGS CERTIFICATES, SERIES OF 1921.

4. Description.—A War Savings Certificate, Series of 1921; is in the
form of a folder, with spaces thereon for affixing 20 War Savings
Stamps, Series of 1921, and will be an obligation of the United States
when, and only when, one or more War Savings Stamps, Series of
1921, shall be afiixed thereto. Each War Savings Stamp, Series of
1921, affixed to a War Savings Certificate will have a maturity value
•of $5 on January 1, 1926, which will accordingly give, each such
certificate, when bearing its full complement of 20 such stamps, a
maturity value of $100 on said date. No War Savings Certificate,
Series of 1921, will be issued unless at the same time one or more
War Savings Stamps, Series of 1921, shall be purchased and affixed
thereto, but no additional charge will be made for the War Savings
Certificate itself. The name of the owner of each War Savings
Certificate must be written upon such certificate at the time of the
issue thereof. War Savings Certificates, Series of 1921, will be dated
January 3, 1921, arid will bear the facsimile signature of the present
Secretary of the Treasury.
5. Issue prices.—War Savings Stamps, Series of 1921, will be issued
in 1921 at the following prices:
January.
February
March...
April

$4.12
4,13
4.14
4.15

| May
June
July
I August

$4.16
4.17
4.18
4.19

September.
October.
November.
December

. . . . $4.20
4.21
4, 22
4, 23

The average issue price above fixed for the year 1921 with interest
:at 4 per cent per annum compounded quarterly for the average period
to maturity will amount to $5 on January°l, 1926.
6, Tax exemptions.—WsiT Savings Certificates, Series of 1921, shall
he exempt, both as to principal and interest, from all taxation now
or hereafter imposed by the United States, any State, or any of the
possessions of the United States, or by any local taxing authority,
except (a) estate or inheritance taxes, .and (b) graduated additional
income taxes, commonly known as surtaxes, and excess-profits and
war-profits taxes, now or hereafter imposed by the United States,
upon the income or profits of individuals, partnerships, associations,
or corporations. The interest on an amount of bonds and certificates authorized by said act approved September 24, 1917, and
amendments thereto, the principal of which does not exceed in the
aggregate $5,000, owned by any individual, partnership, association,
or corporation, shall be exempt from the taxes provided for in clause
(6) above.
7. Affixing stamps to certificates.—WsiT Savings Stamps of the Series
of 1918, of the Series of 1919, or of the Series of 1920, shall not be




300

REPORT ON THE FINANCES.

affixed to War Savings Certificates of the Series of 1921, and W a r
Savings Starops of the Series of 1921 shall not be affixed to W a r
Savings Certificates of the Series of 1918, of the Series of 1919, or of
the Series of 1920. War Savings Stamps of one series affixed to War
Savings Certificates of another series will not add to the value thereof.
8. Thrift Cards and Thrift Stamps.—Payments on account of War
Savings Stamps, Series of 1921, may also be evidenced by United
States Thrift Stamps (hereinafter called Thrift Stamps), issued at any
time since December 3, 1917, having a face value of 25 cents each
but bearing no interest. Thrift Stamps, however, must not be affixed
to War Savings Certificates or Treasury Savings Cards, but only to
Thrift Cards, which may be obtained without cost. Thrift Stamps
as such are not directly redeemable in cash, but each Thrift Card will
have spaces for 16 such Thrift Stamps, and a Thrift Card, when
bearing its full complement of 16 stamps, may be exchanged at a
)ost office, or other authorized agency, during the calendar year 1921,
or a War Savings Stamp, Series of 1921, provided that upon such
exchange the owner of such Thrift Card shall pay the difference
between $4 and the current issue price of War Savings Stamps,
Series of 1921, during the month in which such exchange is made,
as,shown by the table set forth in paragraph 5 hereof. The Secretary
of the Treasury will make provision for the exchange of Thrift Stamps
after December 31, 1921, into War Savings Stamps, Series of 19.21,
upon payment of the additional amount then required, or into some
other series, as he may determine, or will otherwise protect the
interest of holders of Thrift Stamps.
9. Payment at maturity.—Owners of War Savings Certificates, Series
of 1921, will be entitled to receive on January 1, 1926, at the Treasury
Department in Washington, or at a money-order post office (but only
at the post office where registered in the case of a registered certificate), upon surrender of such certificates and upon compliance with
all otlier provisions thereof, $5 in respect of each W ar Savings Stamp,
Series of 1921, then affixed thereto, but no post office shall be required
to make any such payment until 10 days after receiving written
demand therefor.
10. Payment prior to maturity.—The owner of a War Savings Certificate, Series of 1921, at his option, will be entitled to receive, at any
time after January 10, 1921, and priorto January 1, 1926, at a moneyorder post office (but only at the post office where registered in the
case of a registered certificate), upon surrender of his certificate and
upon compliance with all other provisions thereof, in respect of each
War Savings Stamp, Series of 1921, then affixed to such certificate,
the lesser amount indicated in the following table, but no post office
shall be required to make any such payment until 10 days after
receiving written demand therefor, and such certificate must be surrendered for payment within 60 days after such demand, otherwise
the demand will be deemed to be waived and a new demand will be
required before payment.

f




301

SECRETARY OF THE TREASURY.

TABLE SHOWING HOW WAR SAVINGS STAMPS, SERIES OF 1921, INCREASE
IN VALUE.
Month.
January
February.
March
April
May .
June
July
August.. ^
September
October
November
December

t
:

J a n u a r y 1,1926

1921

1922

1923

1924

1925

$4.12
4.13
4,^14
4,15
4,16
4.17
4.18
4,19
4.20
4.21
4.22
4,23

$4,24
4,25 ,
4,26
4,27
4.28
4.29
4.30
4,31
4,32
4.33
4.34
4,35

S4.36
4,37
4.38
4,39
4.40
4.41
4.42
.4.43
4,44
4.45
4.46
4.47

$4.48
4. 49
4.50
4,51
4,52
4.53
4.54
4.55
4.56
4.57
4.58
4.59

$4.60
4.61
4.'62
4.63
4.64
4.65
4.66
4.67
4.68
4.69
4.70
4.71

1
t

5.00

11. Registration.—War Savings Certificates, Series of 1921, may be
registered without cost to the owner at any post office of the first,
second, or third class, or at certain specially authorized post offices of
the fourth class, subject to such regulations as the Postmaster General
may from time to time prescribe, and payment in respect of any certificate so registered will be made only at the post office where registered. Unless registered, the United States will not be liable if payment in respect of any certificate or certificates be made to a person
not the rightful owner thereof. The Postmaster General may, by
regulation, provide for the transmission of registered certificates by
mail to the post office of registration for payment, and the return of
proceeds by money order, in cases in which it appears that the owner
IS unable to secure payment personally, or by a representative, pursuant to regulations therefor.
. 12. Exchange for Treasury Savings Certificates.—War Savings Certificates, Series of 1921, bearing War Savings Stamps, Series of 1921,
to an equivalent maturity value, may be exchanged for Treasury
Savings Certificates, Series of 1921, in the denominations of $25, $100)
and $1,000 (maturity value) inscribed in°the same name, under the
rules and regulations hereinafter provided. Treasury Savings Certificates are registered on the books of the Treasury Department,
Washington. Holders of War Savings Certificates, Series of 1921,
bearing an appropriate number of War Savings Stamps, Series of 1921,
are accordingly urged to exchange such certificates ior Treasury Savings Certificates, Series of 1921, instead of presenting them simply for
registration at post offices.
13. Certificates not transferable.—War Savings Certificates, Series of
1921, are not transferable and will be payable only to the respective
owners named thereon, except in the case of the death or disability
of any such owner. In case of the death or disability of the owner,
such certificates will be payable in accordance with regulations prescribed by the Secretary of the Treasury.
14. Rights of holders of certificates.—^All the provisions of Treasury
Department Circular No. 108, dated January 21, 1918, as amended
and supplemented, further defining rights of holders of War Savings
Certificates, apply to and govern rights of holders of War Savings




302

^

REPORT ON THE FINANCES.

Certificates, Series of 1921, except as herein expressly modified with
respect to War Savings Certificates, Series of 1921, to wit:
(a) In paragraph I thereof, the maturity date specified shall read
'^ January 1, 1926.^'
(6) In paragraph VI thereof, the $1,000 limitation on the holdings
of a single person will refer to a maturity value of $1,000 of certificates
of the Series of 1921, of whatever issue or denomination, without reference to any holdings of certificates of any other series.
(c) In paragraph X I there shall be inserted in the receipt thereby
required to be signed after the words ^^War Savings Certificates" the
words ^'of any one series, of whatever issue or denomination."
(d) I n paragraph XIV the aggregate amount of certificates received
and held as therein provided will refer to the aggregate amount of
certificates of the Series of 1921 without.reference to any holdings of
certificates of any other series.
TREASURY SAVINGS CERTIFICATES, SERIES OF 1921.

15. Description of certificates.—Treasury Savings Certificates, Series
of 1921, will be issued only in registered form, in denominations
bf $25, $100, and $1,000 (maturity value) and shall bear the name
of .the owner thereof, which shall be inscribed thereon by the issuing
agent at the time of the issue thereof. The issuing agent will also
be expected to fill in the date of issue on the blank provided for t h a t
purpose on the back of the certificate. At the time of issue of each
such certificate the registration stub attached thereto shall be executed in the same manner by the issuing agent, and shall be detached and forwarded in the manner hereinafter directed for transmission to the Treasury Department at Washington-. The registration stubs will remairi at the Treasury Department at Washington
and will constitute the basis for the Department's record of the registered ownership of the certificates. In addition to the registration
stub above described, each certificate will be provided with an additional or duplicate stub, w ^ c h shall be executed at the same time
and in the same manner as the original registration stub and retained
by issuing post offices in such manner as the Postmaster General
shall direct, and by Federal Reserve Banks and other issuing agents
subject to the order of the Secretary of the Treasury. The certificates will not be transferable, and will be payable only to the owner
named thereon except in case of death or disability of the owner and
in such case will be payable as provided.in regulations prescribed by
the Secretary of the Treasury. The certificates will not be validunless the owner's name is duly inscribed thereon by an authorized
agent at the time of the issue thereof. Treasury Savirigs Certificates,
Series of 1921, will be dated January 3, 1921, and will bear the facsimile signature of the present Secretary of the Treasury.




303

SEOBETABY OF THB TREASUBY.

16. Issue prices.—Treasury Savings Certificates, Series of 1921,
will be issued in 1921 at the following prices:

Month of issue, 1921.

January...
February..
March.-....
April
May..
June
July........
August....
. September.
October...
November.
December.

Denomination of $25
(maturity
value).

Denomination of $100
(maturity
value).

$20,60
20.65
20,70
20,75
20;80
20.85
20.90
20.95
21,00
21.05
21.10
'21.15

$82.40
82.60
82.80
83.0083.20
83.40
83.60
83.80
84.00
84.20
84.40
84.60

Denomination of $1,000
(maturity
value).
$824.00
826.00
828.00
830.00
832.00
834.00
836.00
838.00
840.00
842.00
844.00
846.00

The average issue price's above fixed for the year 1921, with interest
at 4 per cent per annum compounded quarterly for the average period
to maturity, will amount to $25, $100, and $1,00(), respectively? on
January 1, 1926.
17. Tax exemption.—Trea.sury Savings Certificates, Series of 1921,
shall be exempt, both as to principal and interest, from all taxation
now or hereafter imposed by the.United States, any State, or any of
the possessions ol the United States, or by any local taxing authority,
except {a) estate or inheritance taxes, and (b) graduated additional
inconie taxes, commonly known as surtaxes, and excess-profits and
war-profits taxes, now or hereafter imposed by the United States,
upon the income or profits of individuals, partnerships, associations,
or corporations. The interest on an amount of bonds and certificates authorized by said act approved September 24, 1917, and
amendments thereto, the principal of which does not exceed in the
aggregate $5,000, owned by any individual, partnership, association,
or corporation, shall be exempt from the taxes provided for in clause
(b) above.
•
18. Issue in exchange for unregistered War Savings Certificates,
Series of 1921.—One or more War Savings Certificates, Series of 192 1,
which have not been registered and which have an aggregate maturit y
value of $25, or some multiple thereof, no more, no less, may be
received in exchange for one or more Treasury Savings Certificates,
Series of 1921, of an equivalent aggregate maturity value, in t h e
appropriate denominations of $25 or $100 (maturity value) inscribed
in the same name as the certificates presented in exchange, upon
presentation and surrender to any post office authorized to issue and
sell Treasury Savings Certificates, Series of 1921, or to any other
agent for the sale of Treasury Savings Certificates, Series of 1921;
and 10 such War Savings Certificates, each bearing the full complement of 20 War Savings Stamps, Series of 1921, may in Uke manner
be received in exchange for a Treasury Savings Certificate, Series of
1921, in the denomination of $1,000 (maturity value) ins'cribed in the
same name as the certificates presented in exchange, upon presentation and surrender to any authorized agent for the sale of Treasury
Savings Certificates, Series of 1921, in the denomination" of $1,000
(maturity value).




304

• liiEPORT ON THE FINANCES.

19. Issue in exchange for registered War Savings Certifi,cates, Series
of 1921.—One or more War Savings Certificates, Series of 1921, which
have been registered and which have an aggregate maturity value of
$25, or some multiple thereof, no more, no less, may in like manrier
be received in exchange for one or more Treasury Savings Certificates,
Series of'1921, of an equivalent aggregate maturity value, in the
appropriate denominations of $25 or $100 (maturity value) inscribed
in the same name as such registered War Savings Certificates, when
presented for that purpose by the registered owner to the post office
of registration, provided that such post office is authorized to issue
and sell Treasury Savings Certificates, Series of 1921.
20. Other regulations governing exchanges.—No previous demand
for payment of War Savings Certificates, Series of 1921, surrendered
in exchange for Treasury Savings Certificates, Series of 1921, pursuant
to paragraphs 18 and 19 hereof, will be required, and the exchange
will be made in each case without payment to or by the United States.
The receipt form on such War Savings Certificates, Series of 1921, so
presented in exchange for Treasury Savings Certificates, Series of
1921, must be duly executed by the owner thereof, and appropriate
notation on the War Savings Certificates so received in exchange
shall be made by the issuing agent to the effect that such certificates
have been received in exchange for Treasury Savings Certificates,
Series, of 1921. War Savings Certificates, Series of 1918, Series of
1919, and Series of 1920, Treasury vSavings Certificates of the Series
of 1918, the Series of 1919, and the Series of 1920, detached Treasury
Savings vStamps, detached War Savings Stamps, War Savings Cerficates. Series pf 1921, having an aggregate maturity value not $25 or
some multiple thereof. Thrift Cards with Thrift vStamps affixed, or
detached Thrift vStamps, will not be received in exchange or payment
for Treasury Savings Certificates, Series of 1921. Treasury Savings
Stamps affixed to Treasury Savings Cards will be accepted on the
purchase price of Treasury Savings Certificates, as provided in paragraph 26 hereof. Treasury Savings Certificates, Series of 1921, may
be exchanged at the Treasury Department, Washington (but not at
the Federal Reserve Banks, post offices, or other authorized agencies),
for Treasury Savings Certificates of the same series inscribed in the
same name in other authorized denoininations to the same aggregate
maturity value.
21. Payment at maturity.—Owners of Treasury Savings Certificates,
Series of 1921, will bie entitled to receive on January 1, 1926, the respective face amounts as stated thereon. On and after January 1,
1926, payment of the certificates will be made upon presentation and
surrender thereof by mail or otherwise at the Office of the Secretary of
the Treasiiry, Division of Loans and Currency, Washington, and
upon compliance with all other provisions thereof, provided the form
of demand for payment appearing on the back thereof shall be properly signed by the owner in the presence of, and duly certified by, a
United States postmaster (who should also affix the official postmark
of his office), an executive officer of an incorporated bank or trust
company (who should also affix the corporate seal of the bank or trust
company), or any other person duly designated by the Secretary of
the Treasury for the purpose. In case of the death or disability of
the owner, a special form of demand for payment prescribed by the
Secretary of the Treasury must be duly executed.




SECRETARY

OF T H E

305

TREASURY.

22. Payment prior to maturity.—The owner of a Treasury Savings
Certificate, Series of 1921, at his option, will be entitled to receive,
prior to Jariuary 1, 1926, the lesser amount indicated iri the following
tables (and in. the table appearing on the back of the certificate) with
respect to certificates of the denomination concerned. Payment
prior to January 1, 1926, of the amount payable in respect of any.
such certificate will be made upon presentation, surrender, and
demand made as aforesaid, at the Office of the Secretary of the Treasury, Division of Loans and Currency, Washington, and upon compliance with all other provisions thereof, b u t in no event prior to the
second calendar'month following the calendar month in which the
certificate is issued to the owner.
TABLES

SHOWING

HOW

TREASURY

SAVINGS

OF 1921, INCREASE
DENOMINATION

IN

CERTIFICATES,

VALUE.

OF $25.

1921

Month.
January...
February
March..
April..
May...
June
July
August
September . .
October
November
D'ecember

'.

1922

1923

1924

1925

$20. 60
20.65
20.70
20.75
20.80
20.85
20.90
20.95
21.00
21.05
21.10
21.15

$21. 20
21.25
21.30
21.35
21.40
21.45
21.50
21. 55
21.60
21.65
21.70
21.75

$21. 80
• 21. 85
21.90
21.95
22,00
22.05
22,10
22.15
22.20
22.25
22.30
22.35

$22.40
22.45
22.50
22.55
22.60
22.65
22.70
22.75
22.80
22.85
22.90
22.95

$23.00
23.05
23.10
23,15
23.20
23.25
23.30
23.35
23.40
23.45
23.50
23.55

i

Januarj'^ 1,1926

25.00

DENOMINATION

1922

$82.
82.
82.
83.
83,

84.

1923

1924

1925

$84, 80
85,00
85,20
85,40
85,60
85.80
86,00
86,20
86,40
86,60
86,80
87,00

1921

Month.
January —
February...
March
April
May
June...
July
August
September.
October
November..
December..

OF $100.

$87, 20
87.40
87.60
87.80
88.00
88.20
88.40
88,60
88,80
89,00
89,20
89.40

$89, 60
89.80
90,00
90,20
90,40
90.60
90,80
91,00
91,20
91,40
91,60
91.80

$92, 00
92,20
92,40
92,60
92.80
93.00
93,20
93.40
93,60
93,80
94,00
94.20

J a n u a r y 1,1926.

100, 00.
DENOMINATION

Month,

1921

January
February-..
March
April
May........
June
July
August
Septeniber..
October
November..
December..

$824,
830,
832.
834.
836.
838,
840.
842.
844,
846,

1922

1923

1924

1925

$848.00
850, 60
852.00.
854,00
856, 00
858, 00
860, 00
862, 00
864, 00
866, 00
. 868, 00
870, 00

$872, 00
874, 00
876, 00
878, 00
880, 00
882. 00884. 00
886, 00
888, 00
890. 00
892, 00
894,00.

$896, 00
898, 00
900, 00
902.00
904, 00
906, 00
. 90S, 00
910, 00
912, 00
914, 00
916, 00
918, 00

$920, 00
922,00
924,00
926, 00
928, 00
930, 00
932, 00
934, 00
936. 00
938, 00
940, 00
942, 00
1,000, 00

J a n u a r y 1,1926.
70073—FI 1 9 2 1 -

OF $1,000.

-20




SERIES

306

REPORT ON THE FINANCES.

23.. Transmission of registration stuhs by post offices.—The original
registration stubs detached from Treasury vSavings Certificates,
Series of 1921, sold by post offices, shall be attached to the accounts
of sales of such certificates rendered to the Third Assistant Postmaster General, Division of Stamps, and forwarded by the Third
Assistant Postmaster General to the Secretary of the Treasury,
Division of Loans and Currency, Washington, so as to reach the
Treasury Department not later than the. month succeeding the
month in which the certificate is sold.
24. Transmission of registration stubs by other issuing ageiits.—The
original registration stubs detached from Treasury Savings Certificates, Series of 1921, sold by other issuing agents, shall be forwarded
to the Federal Reserve Bank froiri which such certificates were
obtained, with the monthly accounts of such agents as required by
the provisions of Treasury Department Circular No. 216, dated
December 15, 1920.. The Federal Reserve Bank receiving such
stubs will see that a registration stub is at banc] for each such cer. tificate reported sold and will forward such stubs, together with the
original registration stubs detached from all Treasury-vSavings Certificates, Series of 1921, issued and sold by it, to the Secretary of the
Treasury, Division of Loans and Currency, Washington, monthly,
so as to reach the Treasury Department not later than the month
succeeding the month in which the certificate is sold. The original
registration stubs detached from Treasury Savings Certificates,
Series of 1921, sold by the Treasurer of the United States shall be
forwarded to the Office of the Secretary of the Treasury, Division of
Loans and Currency, at the end of.each month so as to reach such
office not later than the month succeeding the inonth in which the
certificate is sold. .
25. Rights of holders of certificates.—The provisions, of Treasury
Department Circular No. 108, dated January 21, 1918, as amended
and supplemented, further defining rights of holders of War vSavings
Certificates, do not apply to or govern the rights of holders of Treasury Sav^ings Certificates, Series of 1921. The provisions of Treasury
Department Circular No. 149, dated July 31, 1919, as amended and
supplemented, further defining the rights of holders ol Treasury
Savings Certificates, will apply to and govern the rights of holders
of Treasury Savings Certincates, Series of 1921, except as h e r e b y
further modified solely with respect to Treasury Savings Certificates,
Series of 1921, to wit:
(a) In Paragraph I of Treasury Department Circular No. 149 thematurity date specified shall read ^ January 1, 1926.'^
^
UNITED STATES TREASURY SAVINGS STAMPS AND TREASURY SAVINGS
CARDS.

26. United States Treasury Savings Stamps (herein sometimes
called Treasury Savings Stamps) issued at any time after December
31, 1920, having a face value of $1 each, but bearing no interest,
may be purchased at the face value thereof at the Treasury Department, at any Federal Reserve Bank, post office, or authorized agency
for the sale of War Savings Cer,tificates or Treasury Savings Certificates, or at authorized sales stations.




SECRETARY OF THE TREASURY.

307

Treasury Savings Stamps, when affixed to Treasury Savings Card^,.
will be accepted at face value during the calendar year 1921 om
account of the purchase price of War Savings Stamps, Series of 1921 ^
^
in the denomination of $5, maturity value, or Treasury Savings Cer-^
tificates. Series of 1921, in denominations of $25, $100, or $1,000,
maturity value. Treasury Savings Stamps must be affixed to Uniteci
States Treasury Savings Cards (which,may be obtained without cost),
and must not be affixed to War Savings Certificates or Thrift Cards.
Each Treasury Savings Card has space for 20 Treasury Savings
Stamps, and upon presentation and surrender of a Treasury Savings
Card at a United States post office, or other authorized agency, each
Treasury Savings Stamp then affixed thereto-will be accepted as a
payment of $1 on account of the purchase price of a War Savings
Stamp or Treasury Savings Certificate, Series of 1921; provided
that at the same time the holder of the Treasury Savings Card shall
pay the difference between the face amount of the Treasury Savings
Stamps affixed to the card and the current issue price of the War
Savings Stamp or Treasury Savings Certificate during the month in
which the purchase is made as shown by the tables appearing in
paragraphs 5 and 16 of this circular, respectively. Treasury Savings
Stamps are intended primarily for accumulation on Treasury Savings
Cards in lots of 20 stamps, on account of the purchase price of a $25
Treasury Savings Certificate. Treasury Savings Stamps can not
be registered, do not bear interest, and are not directly redeemable
in cash.
The Secretary of the Treasury will make provision for exchanges
of Treasury Savings Stamps after December 31, 1921, into Treasury
Savings Certificates, Series of 1921, upon payment of the additional
amount then required, or into some other series, as he may determine,
or will otherwise protect the interest of holders of Treasury Savings
Stamps.
EXCHANGE ISSUES OF TREASURY SAVINGS CERTIFICATES, SERIES OF
1918, 1919, OR 1920.

27. War Savings Certificates of the Series of 1918, 1919, or 1920,
after December 31, 1920, may be presented for exchange for Treasury
Savings Certificates of the same series, and maturity value, only at
the Treasury Department, Washington, and at Federal Reserve
Banks, as fiscal agents of the United States, except that if registered
War Savings Certificates are presented for such exchange presentation must be through the post office where registered. Such issues
of Treasury Savings Certificates of the Series of 1918, 1919, or 1920,
in exchange for War Savings Certificates of the same series, are
governed by the provisions of Treasury Department Circular No. 217,
dated December 15, 1920, to which reference is hereby made.
OTHER DETAILS.

28. United States War Savings Certificates, Series of 1921, of
whatever issue or denomination, including Treasury Savings Certificates, will not be receivable as security for deposits of public moneys
and will not bear the circulation privilege.




308

REPORT ON THE FINANCES.

29. The Secretary of the Treasury may at any time withdraw this
circular as a whole, or make from time to time any supplemental or
amendatory regulations which shall not modify or impair the terms
and conditions of United States War Savings Certificates of the Series
of 1921, of whatever issue or denomination, issued in pursuance of
said act of September 24, 1917, as amended and supplemented. The
Secretary of the Treasury may also at any time withdraw Treasury
Savings Certificates, Series of 1921, War Savings Certificates, Series of
1921, War Savings Stamps, Series of 1921, Treasury Savings Stamps or
United States Thrift Stamps, or any of them, from sale, refuse to
issue or to permit to be issued- any War Savings Certificates, Series
of 1921, Treasury Savings Cards or Thrift Cards, and refuse to sell or
to permit to be sold any such certificates or stamps to any person,
fiirm, corporation, or association.
30. ^The provisions of Treasury Department Circular No. 178, •
dated January 15, 1920, as to holdings of United States War Savings
Certificates in excess of the legal limit apply to and govern War
Savings Certificates and Treasury Savings Certificates; Series of 1921,
issued hereunder.
31. Further details may be announced by the Secretary of the
Treasury from time to time, information as to which will be promptly
furnished to Federal Reserve Banks, to postmasters, and to other
agents.
D. F. HOUSTON,

Secretary of the Treasury.
EXHIBIT

56.

[Department Circular No, 216. Loans and Currency,]
A G E N C I E S FOR THE D I S T R I B U T I O N AND SALE OF
SAVINGS SECURITIES DURING 1921.

TREASURY

TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,

Washington, December 15, 1920.
To Federal Reserve Banlcs, all Cash and Collateral Agents for the Sale^
of War Savings Certificates and Treasury Savings, Certificates, Sales
. Stations, and others concerned:
1. The provisions of Treasury Department Circular NQ. 172, dated
December 10, 1919, as amended and supplemented April 10, 1920,
governing agencies for the distribution and sale of War-Savings
Certificates and Treasury Savings Certificates, Series of 1920, are
hereby extended, subject to the provisions hereof and of Treasury
Department Circular No. 215, dated December 15, 1920, to agencies
for the distribution and sale during the calendar year 1921 of WarSavings Certificates, Series of 1921, War-Savings Certificate Stamps,
Series of 1921, Treasury Savings Certificates, Series of 1921, Treasury Savings Cards and Treasury Savings Stamps, issued pursuant to
said Treasury Department Circular No. 215, dated December 15,
1920, and United States Thrift Cards and Thrift Stamps issued ^at
any time on or after December 3, 1917. United States War-Savings
Certificates, payments for or on account of which are evidenced by
War-Savings Certificate Stamps affixed thereto, are called in this




SECRETARY OF T H E TREASURY.

309

circular War-Savings Certificates, and United States Treasury Savings Certificates, in denominations of $25, $100, and $1,000 (maturity
value), are called in this circular Treasury Savings Certificates.
2. The only authorized agents for the issue or sale during the calendar year 1921 of Treasury Savings Certificates, War-Savings Cer-.
tificates or Stamps, Treasury Savings Cards, Treasury Savings
Stamps, Thrift Cards or Thrift Stamps, herein sometimes called
Treasury Savings Securities (in addition to post offices. Federal
Reserve Banks, duly designated officers of the United States, and
the Treasury Department, Washington), shallbe (a) cash agents and
(b) collateral agents,- acting in accordance with the provisions of this
circular. Upon application through the Federal Reserve Banks,
other persons than incorporated banks and trust companies may be
designated hereunder by the Secretary of the Treasury in special
cases as' cash agents or collateral agents for the issue and sale of
Treasury Savings Securities during 1921, subject in all other respects
and in the same manner as other cash or collateral agents to the provisions hereof and of Treasury Department Circular No. 215, dated
December 15, 1920.
3. The provisions of Treasury Department Circular No. 181, dated
February 10, 1920, governing sales stations for the distribution and
sale of War-Savings Certificates and Stamps, Series of 1920, and
Thrift Stamps during the calendar year 1920, are hereby extended,
subject to the provisions of said Treasury Department Circular No.
215, dated December 15, 1920, to sales stations for the sale during the
calendar year 1921 of War-Savings Certificate Stamps, Series of 1921,
Treasury Savings Stamps, and Thrift Stamps, and the issue of WarSavings Certificates, Series of 1921, Treasury Savings Cards, and
Thrift Cards during the calendar year 1921.
4. All provisions of said Treasury Department Circulars No. 172,
as amended and supplemented, and No. 181, with reference to WarSavings Certificates and Stamps'and Treasury Savings Certificates,
Series of 1.920, issued under Treasury Department Circular No. 170,
dated December 10, 1919, and Thrift Stamps and Thrift Cards during
1920, shall, mutatis mutandis, apply with equal force and effect to
War-Savings Certificates and Stamps and Treasury Savings Certificates, Series of 1921, issued under said Treasury Department Circular
No. 215, dated December 15, 1920, and to Thrift Stamps and Thrift
Cards during 1921, subject to the provisions thereof. Treasury
Savings Stamps and Treasury Savings Cards shall, for the purposes of
this circular, be treated like Tlirift Stamps and Thrift Cards, except
that Treasury Savings Stamps shall be taken at the face value of $1
each and shall, with Treasury Savings Cards, in other respects be
subject to the provisions of said Treasury Department Circular No.
15, dated December 15, 1920.
5. Cash agents already duly qualified to a sufficient amount for
the sale of War-Savings Certificates and Stamps and Treasury Savings
Certificates, .Series of. 1920, may act as cash agents for the sale of
Treasury Savings Securities, Series of. 1921, without further application; and they will, by the receipt or sale of Treasury Savings
Certificates, Series of 1921, or War-Savings Certificates or Stamps,
Series of 1921, or of Treasury Savings Stamps or Thrift Stamps
after December 31, 1920, be conclusively presumed to have assented
to all the terms and provisions of this circular. Collateral agents.




310

REPORT ON T H E FINANCES.

already duly qualified to a sufficient amount for the sale of WarSavings Certincates and Stamps and Treasury Savings Certificates,
Series of 1920, will not be required to file anew formal applications
or pledge agreements and may act as collateral agents for the sale
of Treasury Savings Securities, Series of 1921, without further application; and they will, by the receipt or sale of Treasury Savings
Certificates, Series of 1921, or War-Savings Certificates or Stamps,
Series of 1921, or of Treasury Savings Stamps or Thrift Stamps after
December 31, 1920, be conclusively presumed to have assented to all
the terms and provisions of this circular and to the retention of any
collateral security pledged or to be pledged as collateral security
hereunder. Sales stations already designated for the sale of WarSavings Certificate Stamps, Series of 1920, and Thrift Stamps, and
the issue of War-Savings Certificates and Thrift Cards, during the
calendar year 1920, may without further designation continue as
sales stations for the distribution and sale of War-Savings Certificates
and Stamps, Series of 1921, and Treasury Savings Stamps, Treasury
Savings Cards, Thrift Stamps and Thrift Cards, during the calendar
yeaf 1921; and all persons acting as such sales stations during the
calendar year 1921, will by the receipt or sale of War-Savings Certificates or Stamps, Series of 1921, or of Treasury Savings Stamps or
Thrift Stamps after December 31, 1920, be coriclusively presumed
to have assented to all the terms and provisions of this circular.
REVISED FORMS, 1921.

6. Forms L. & C. 337, L. & C. 354, L. & C. 355, L. & C. 356, L. &
C. 357 and L. & C. 358, appended to Department Circular No. 172>
dated December 10, 1919, and Form L. & C. 382, appended to Department Circular No. 181, dated February 10, 1920, have been revised
in order to cover Treasury Savings Securities during the calendar
year 1921. Copies of the revised 1921 forms, which should be used
, for any new applications and other appropriate operations hereunder,
are appended hereto for the information and guidance of all concerned.
OTHER DETAILS.

7. Copies of all forms specified in this circular, or of substantially
similar forms, may be obtained, upon application, from the Federal
Reserve Banks. Copies of this circular and of all Treasury Department circulars referred to herein, may be obtained, upon application,
from the Secretary of the Treasury, Division of Loans and Currency,
Washington, or from any Federal Reserve Bank.
8. The Secretary of the Treasury may. at any time withdraw this
circular as a whole, or amend from time to time any of the provisions
hereof, terminate any agency or sales station created or existing
hereunder, revoke any or all appointments of agents, withdraw
Treasury Saf^ings Certificates, War-Savings Certificate Stamps,
Treasury Savings Stamps, or Thrift Stamps from sale, refuse to
issue or to permit to be issued any such certificates or stamps, and
refuse to sell or to permit to be sold any such certificates or stamps
t o any person, firm, association, or corporation.
9. The Secretary of the Treasury may make from time to time any
supplemental or amendatory regulations which shall not modify or
impair the terms and conditions of Treasury Savings Certificates,




SECRETARY OF THE TREASURY.

-

311

War-Savings Certificates, War-Savings Certificate Stamps, Treasury
Savings Stamps, or Thrift Stamps issued in pursuance of the act
approved September 24, 1917, as amended and supplemented, and
may amend or supplement this circular from time to time by Treasury
Department Circular mailed to the Federal Reserve Banks and
generally to bariks and trust companies incorporated under the laws
of the United States or of any State.
10. Further details may be announced by the Secretary of the
Treasury from time to time, information as to which will be promptly
furnished to Federal Reserve Banks and to agents.
D. F . HOUSTON,

Secretary of the Treasury.
T R E A S U R Y DEPARTMENT.
LOANS AND CURRENCY.

Form L. & C. 337 (Revised, 192n.

.,192..-.
To t e FEDERAL RESERVE BANK OP
h

,

As Fiscal Agent of the United States:
The undersigned hereby applies for appointment as a cash agent for the sale of
Treasury Savings Certificates, Series of 1921, War Savings Certificate Stamps, Series
of 1921, Treasmy Savings Stamps, and Thrift Stamps, and the issue of War Savings
Certificates, Seiies pf 1921, Treasury Savings Cards, and Thrift Cards, in accordance
with the provisions of Treasury Department Circulars Nos. 215 and 216, dated December 15, 1920, and agrees, upon appointment as such agent, faithfully to perform the
duties iniposed upon cash agents by the provisions of said circulars, as from- time to
time amended and supplemented. The maximum maturity value of Treasury Savings Certificates, Series of 1921, and War Savings Certificate Stamps, Series of 1921,
' which the undersigned desires to hold at any one time for sale as such agent, is I
(Signature in full)
By
(Authorized signature required.)

(Address, number, and street)
(City or town)
(County)
(State)

T R E A S U R Y DEPARTMENT.
.

• LOANS AND CURRENCY.

Form L. & C. 354 (Revised, 1921).

Name

Street and number
County
State

:
:..

Your application on Form L. & C. 337 (Revised), dated
, has been
approved, and you are hereby appointed a cash agent for the sale of Treasury Savings
Certificates, Series of 1921, War Savings Certificate Stamps, Series of 1921, Treasury
Savings Stamps, and Thrift Stamps,' and the issue of War Savings Certificates, Series
of 1921, Treasury Savings Cards, and Thrift Cards, subject to the provisions of Treasury Department Circulai*s Nos. 215 and 216, dated December 15, 1920, as from, time to
time amended and supplemented. The maximum- maturity value of Treasury Savings Certificates, Series of 1921, and War Savings Certificate Stamps, Series of 1921,
which you may hold at any one time for sale as such agent is $
FEDERAL RESERVE BANK OP

,

Fiscal Agent of the United States,
Governor.
Dated

., 192....

(Original to be issued to agent, duplicate to be forwarded to Secretary of the Treasury, Division of Loans and Currency, Washington, and triplicate to be retained by
Federal Reserve Bank.)




312

REPORT ON THE FINANCES.

TREASURY DEPARTMENT.
- LOANS AND CURRENCY.
ilorin L.:<fe C. 355 (Revised, 1921).

!;

: "

"
^

,

CASH AGENT'S R E P O R T .

MONTHLY R E P O R T OF SALES AND HOLDINGS OP T R E A S U R Y SAVINGS CERTIFICATES,
/ W A R SAVINGS CERTIFICATE STAMPS, T R E A S U R Y SAVINGS STAMPS, AND T H R I F T
STAMPS.

Dated
, 192....
The undersigned cash agent for the sale of Treasury Savings Certificates and War
Savings Certificates, Series of 1921, hereby renders to the Federal Reserve Bank
of
., as fiscalagent of the United States, the following report of all transactions in Treasury Savings Certificates, War Savings Certificate Stamps, Treasury
Savings Stamps, and Thrift Stamps obtained by i t from said Federal Reserve Bank,
for'the month ending ,
, 192
:
Treasury Savings Certificates
(maturity value).

War
Savings
Certificate
Stamps
(maturity
value).
Balance on hand close of preceding month

Treasury
Savings
Stamps.

$

S

Thrift.
Stamps.
Denomina- Denomina- Denomination, $25. tion, $100. tion, $1,000.

$

s

$

$

Add amounts obtained during month
:.
Total
Deduct sales current month—
(maturity value) .
Balance on hand "close
of month.-.;

(Name of agent.)

By
(Official signature required.)

City

State

.

NOTE.—This report must be accompanied by schedule showing the serial numbers of all Treasury Savings Certificates reported sold and all such certificates reported on hand at close of month.
TREASURY

DEPARTMENT.

LOANS AND CURRENCY.

Form L. <e C. 356 (Revised, 1921).
f

P L E D G E AGREEMENT.
To the F E D E R A L R E S E R V E B A N K of

,

As fiscal agent of the United States: „
T h e undersigne<l desires to become a collateral agent for the issue and sale of Treasury
Savings Certificates, Series of 1921, War Savings Certificates and Stamps, Series of 1921,
, Treasury Savings Stamps, and Thrift Stamps, in accordance with the provisions of
Treasury Department Circulars No. 215 and No. 216, dated December 15, 19'20, as
from time to time amended and supplemented, and to obtain, from time to time, for
sale to the public, as provided in said circulars. Treasury Savings Certificates, Series
of 1921, War Savings Certificate Stamps, Series of 1921, Treasury Savings Stamps, and
Thrift Stamps, in the'aggregate amount of $
(such Treasury Savings Certificates and War Savings Certificate Stamps to be taken for this purpose at the maturity
value thereof, and such Treasury Savings Stamps at $1 each and such Thrift Stamps
at 25 cents each), and, as and when such certificates and stamps shall be sold and
accounted and paid for, to obtain in lieu thereof, from time to time thereafter, additional Treasury Savings Certificates and War Savings Certificate Stamps of t h e Series
of 1921 (at maturity value). Treasury Savings Stamps (at $1 each), and Thrift Stamps
(at 25 cents each), up to b u t not exceeding at any one time the total amount stated
above.




.SECRETARY OF THE.TREASURY.

•

313

The undersigned hereby agrees that none of such certificates and stamps obtained
by the undersigned shall be sold or disposed of otherwise than as provided in said
circulars, and further agrees faithfully to perform all other obligations to be performed
by collateral agents as therein and herein j)rovided.
The undersigned agrees, in accordance with the provisions of Treasury Department
Circular No. 216, dated December 15, 1920, before or upon the delivery to the undersigned of Treasury Savings Oertificates, War Savings Certificate Stamps, Treasury
Savings Stamps, and Thrift Stamps, in the aggregate amount stated above, to deliver
to such Federal Reserve Bank (or to a custodian designated by it), and to pledge with
such Federal Reserve Bank, in negotiable form, and, in the case of coupon bonds,
with all unmatured coupons attached, the following-described bonds and other
securities, of the classes described in subdivisions (a), (b) and (c) of Treasury Department Circular No. 92, dated April 17, 1919, authorized to be deposited as collateral
security under the terms of said Treasury Department Circular No. 216.
Description of security.

CoUateral value.

Total collateral value.
to be held by such Federal Reserve Bank, as Fiscal Agent of the United States, as
collateral security for the faithful performance of the obligations of the undersigned,
now or hereafter from time to time arising, as a collateral agent for the issue and sale
of Treasury Savings Certificates, War Savings Certificates, War Savings Certificate
Stamps, Treasury Savings Stamps, and Thrift Stamps, in accordance with the pro^
visions of said Treasury Department Circulars No. 215 and No. 216, and of any supplemental or amendatory regulations made from time to time as therein provided;
the undersigned, however, so long as not in default hereunder, to be entitled to collect
from time to time and to retain any and all interest upon the above-described collateral security.
In case of any default in the performance of any of the obligations of the undersigned
as collateral agent for the sale of Treasury SaAdngs Certificates, War Savings Certificate
Stamps, Treasury Savings Stamps, and Thrift Stamps, and the issue of War Savings
Certificates, Treasury Savings Cards, and Thrift Cards hereunder or under said
Treasury Department Circulars Nos. 215 and 216, dated December 15, 1920, said
Federal Reserve Bank shall have full power to collect said collateral security or any
part thereof then matured, or to sell, assign, and transfer said collateral security or
any part thereof without notice, at public or private sale, free from any equity of
redemption and without appraisement or valuation, and after deducting all legal and
other costs, attorney's fees, and expenses for collection, sale, and delivery, to apply
the proceeds of such sale or collection, in whole or in part, to the satisfaction of
any damages, demands, or deficiency arising by reason of such default, as said
Federal Reserve Bank may deem best. The undersigned hereby for
self,
heirs, administrator's, executors, successors, and assigns, ratifies and confirms whatever said Federal. Reserve Bank may do by virtue of these presents.
Upon delivery to the undersigned of any Treasury Savings Certificates, Series of
1921, War Sa^dngs Certificate Stamps, Series of 1921, Treasury Savings Stamps, or
Thrift Stamps, desired to be obtained hereunder, this Pledge Agreement shall come
into full force and effect, and the undersigned shall become a collateral agent as aforesaid.




314

REPORT ON THE FINANCES.

In witne3s whereof, the undersigned has caused this agreement to be executed uuder
seal by the officer below named thereunto duly authorized b}'' action of its governing
board.
Dated

, 192....
(Signature in full)

(Corporate Seal.)
By

,

^

(Authorized signature required.)

- (Address, number and street)
(City or town)
(County)
(State)
TREASURY DEPARTMENT.
Loans and Currency.
Forin L. & C. 357 (Revised, 1921)..

Name

Street and Number
City or Town
County.State

,

,
,

,
,

Your pledge agreement on Form L. & C. 356 (Revised, 1921) has been approved and
you are hereby appointed a collateral agent for the sale of Treasury Savings Certificates and War Savings Certificate Stamps, Serie's of 1921, Treasury Savings Stamps,
and Thrift Stamps, and the issue of War Savings Certificates, Series of 1921, Treasury
Savings Cards, and Thrift Cards subject to the provisions of Treasury Department
Circulars Nos. 215 and 216, dated December 15, 1920, as from time to time amended
and supplemented.
FEDERAL RESERVE B A N K OF

By

,

Fiscal Agent ofthe United States.
...
Governor.

Dated
,192
(Original to be issued to agent, duplicate to be forwarded to the Secretary of the
Treasury, Division of Loans and Currency, and triplicate to be retained by Federal
Reserve Bank.)
TREASURY DEPARTMENT.
Loans and Currency.
Form L. & C. 358 (Revised, 1921).

'

Serial No
Date
. . . . , 192
MONTHLY ACCOUNT OF SALES OF TREASURY SAVINGS CERTIFICATES
AND WAR SAVINGS CERTIFICATE STAMPS, SERIES OF 1921, TREASURY
SAVINGS STAMPS, AND THRIFT STAMPS, BY COLLATERAL AGENT.
To FEDERAL RESERVE BANK OP

,

As FISCAL AGENT OP THE UNITED STATES.

The undersigned" hereby renders the following account of transactions in Treasury
Savings Certificates and War Savings Certificate Stamps, Series of 1921, Treasury
Savings Stamps, and Thrift Stamps from
, 192
,
to
-, 192
, both inclusive:




315

SECRETARY OF T H E TREASURY.
Stoch account.
Number of pieces.
Treasury savings certificates.

War
Savings
Certificate
Denomina- Denomina- Denomina- Stamps.
tion, $25. tion, $100. tion, $1,000.

Treasury
Savings
Stamps.

Thrift
Stamps.

On hand at close of preceding
month
'Obtained during month.
Total...
iSales during month

•

Unsold stock returned
' Net total on hand

Gross amount due in respect of sales.
Number of Issue price. Total issue
value.

1

$25 denomination..
$100 denomination..

$1,000 denomination..

IV ar Savings Stamps

,

Treasury Savings Stamps

;...

$1.00

Thrift Stamps

0.25

Total
The undersigned herewith remits for credit to its account the following:
Currency

;

Bank drafts or checks drawn upon the Federal Reserve Bank, or upon any member
bank, payable to the order of " Federal Reserve Bank of
, as
Fiscal Agent ofthe United States," as follows:

Treasury Savings Cards with Treasury Savings Stamps affixed, received in exchange
for Treasury Savings Certificates, stamps taken at $1 each
Treasury Savings Cards with Treasury Savings Stamps affixed, received in exchange
for War Savings Stamps, stamps taken at $1 each
-.'.
,
Thrift Cards with full complement of Thrift Stamps afiixed, received in exchange for
War Savings Stamps, at $4
T.S.C.
denomination.
War Savings Starnps affixed to War.Savings
Certificates, Series of
1921, received in exchange for Treasury
Savings Certificates,
Seriesof 1921

Total.




$25
$100
$1,000

Date of
Number of Exchange
rate per
exchange.
stamps.
stamp.

Total
exchange
value.

316

REPORT ON THE FINANCES.

Remarks

Signed
By....

(Name of Collateral Agent.)
(Ofiicial signature required.)

(Address, number, and street)
(City or town)
(County).:
(State)

NOTE 1.—A similar account must be rendered on or before the 10th day of each
month.
NOTE 2.—No medium of payment other than above provided will be accepted by
any Federal Reserve Bank, except at its own risk, and no agent shall be entitled to
credit, in respect of any payment to be made by check or draft, except when such
check or draft shall have been collected by the Federal Reserve Bank, as fiscal agent
of the United States.
TREASURY DEPARTMENT.
LOANS AND CURRENCY.

Form L. & C. 382 (Revised, 1921).

SALES STATION—IDENTIFICATION CARD.
To POSTMASTERS AND OTHER AUTHORIZED AGENTS:

You are hereby authorized, pursuant to Treasury Department Circular No. 216,
dated December 15, 1920, to sell. Treasury Savings Stamps and Thrift Stamps, and
War Savings Certificate Stamps, Series of 1921 (in amounts not exceeding $1,000,
maturity value, at any one time), and to issue the necessary supply of Treasury
Savings Cards, Thrift Cards, and blank War Savings Certificates therefor, to
(Name.)
(Address.)

who conducts a Sales Station.
This authority expires December 31, 1921.

Director, Government Savings Organization,
Federal Reserve District.
E X H I B I T 57.
[Department Circular No. 217. Loans and Currency.]

FURTHER REGULATIONS GOVEBNING TREASURY SAVINGS CERT I F I C A T E S , S E R I E S O F 1918, S E R I E S OF 1919, AND S E R I E S OF

1920.
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,

Washington, December 15,1920.
To holders of War-Savings Certificates, series of 1918, series of 1919j ,
and series of 1920, Federal Keserve Banlcs, and others concerned:
1. The issue and sale of Treasury Savings Certificates, Series of
1920, for cash, pursuant to the provisions of Treasury Department
Circular No. 170, dated December 10, 1919, will cease at the close of
business on December 31, 1920, b u t the issue of such certificates
after December 31, 1920, in exchange for United States War-Savings
Certificates, Series of 1920, with War-Savings Certificate Stamps,
Series of 1920, afl&xed (hereinafter called War-Savings Certificates,
Series of 1920), is hereby continued until further notice at the




SECRETARY OF THE TREASURY.

317

Federal Reserve Banks and the Treasury Department, Washington,
upon the terms and conditions hereinafter specified. The aggregate
maturity value of United States War-Savings Certificates of the
Series of 1920 outstanding will not be increased by reason of the
issue of Treasury Savings Certificates, Series of 1920, pursuant to
this circular. Treasury Savings Certificates, Series of 1920, issued
pursuant to this circular will be the same in form and terms as the
Treasury Savings Certificates, Series of 1920, outstanding under said
Treasury Departinent Circular No. 170, except that certificates
issued pursuant to this circular will provide that they may be issued
only in exchange for War-Savings Certificates, Series of 1920, of the
same maturity value, and not for cash sale. Treasury Savings
Certificates, Series of 1920, can not be obtained after December 31,
1920, at post offices or incorporated banks or trust companies.
2. The issue of Treasury Savings Certificates, Series of 1918, in
exchange for War-Savings Certificates, Series of 1918, pursuant to
the provisions of Treasury Department Circular No. 171, dated
December 10, 1919, will cease at post offices on December 31, 1920,
but will continue. until further notice at the Federal Reserve Banks
and the Treasury Department, Washington, subject, however, to the
provisions of this circular.
3. The issue of Treasury Savings Certificates, Series of 1919, in
exchange for War-Savings Certificates, Series of 1919, pursuant to
the provisions of Treasury Department Circular No. 169, dated
December 10, 1919,, will cease at post offices on December 31, 1920,
b u t will continue .until further notice at the Federal Reserve Banks
and the Treasury Department, Washington, subject, however, to the
provisions of this circular.
4. After December. 31, 1920, Treasury Savings Certificates of the
Series of 1918, Series of 1919, and Series of 1920, respectively, can be
obtained in exchange for War-Savings Certificates of the Series of
1918, Series of 1919, and Series of 1920, respectively, only at the
several Federal Reserve Banks,, as fiscal agents of the Unitea States,
and at the Office of the Secretary of the Treasury, Division of Loans
and Currency, Washington: Provided, however. That when registered
War-Savings Certificates are presented for such exchange into
Treasury Savings Certificates, presentation must be made through the
post office where registered, in the manner hereinafter provided.
Treasury Savings Certificates of the Series of 1918 can be obtained
only in the denomination of $100 (maturity value), b u t Treasury
Savings Certificates of the Series of 1919 and Series of 1920 can be
obtained in denominations of $100 and $1,000 (maturity value),
even in exchange for registerd War-Savings Certificates of the same
series.
P R E S E N T A T I O N A N D S U R R E N D E R O F WAR-SAVINGS CERTIFICATES.

5. One or more War-Savings Certificates of the Series of 1918,
Series of 1919, or Series of 1920, respectively, of the same series, which
have an aggregate maturity value of $100, or some multiple thereof,
no more, no less, will be received, after December 31, 1920, in exchange
for Treasury Savings Certificates of the same series and same aggregate maturity value, upon presentation and surrender for that
purpose at any Federal Reserve Bank, or the Office of the Secretary



318

REPORT ON THE FINANCES.

of the Treasury, Division of Loans and Currency, Washington;
provided, however, that when registered War-Savings Certificates
are surrendered for such exchange, presentation and surrender must
be made through the post office where registered. The postmaster
at the post office of registration, in the event of the presentation and
surrender of registered War-Savings Certificates for such exchange,
will, if satisfied as to the facts, execute the certificate contained in
" the Request for Exchange on Form General 1020 (attached hereto),
and forward the request, with the War-Saviixgs Certificates and the
registration cards therefor on Form WS-110, by official registered
mail to the Third Assistant Postmaster General, Division of Stamps,
first canceling the War-Savings Certificates in such manner as the
Postmaster General may direct. The Third Assistant Postmaster
General, Division of Stamps, will promptly forward to the Secretary
)f the Treasury, Division of Loans and Currency, for attention, all
such requests for exchange, together with the War-Savings Certificates presented in exchange and the registration cards therefor. I n
case two or more War-Savings Certificates of the same series are
presented for exchange, the certificates so presented may be some
registered and some unregistered, but in that event must all be
presented through the post office where the registered certificates are
registered, which will then cancel and forward the unregistered
certificates in the same manner as if registered. If two or more
War-Savings Certificates are presented for exchange in accordance
with this circular, each such certificate presented need not bear the
full complement of 20 War-Savings Certificate Stamps, provided t h a i
the aggregate maturity value of the certificates presented of the same
series is $100, or some multiple thereof, no more, no less.
6. War-Savings Certificates presented and surrendered in exchange
for Treasury Savings Certificates of the same series in accordance
with the provisions hereof must in each case be accompanied by a
Request, for Exchange on Form General 1020, when registered
certificates are surrendered, or Form General 1021, when unregistered
certificates are surrendered. Copies of these forms are attached
hereto (and additional copies may be obtained from Federal Reserve
Banks; post offices, or the Treasury Department, Division of Loans
and Currency, Washington). Requests for Exchange must bear the
autograph signatures of the owners whose names are inscribed on
the War-Savings Certificates so surrendered for exchange. The
Treasury Savings Certificates issued on exchange will be inscribed
in the same name as the War-Savings Certificates surrendered for
exchange unless another name and address shall be indicated in
writing on the Request for Exchange, in which event the Treasury
Savings Certificates will be inscribed in the name and address so
indicated.
7. No previous demand for payment of War-Savings Certificates
surrendered in exchange for Treasury Savings Certificates of the
same series, in accordance with the .provisions hereof, will be required,
and the exchange will be made in each case without payment to or
by the United States. The receipt form on the War-Savings Certificates so surrendered in exchange for Treasury Savings Certificates
must, however, be duly executed by the owner of the War-Savings
Certificates so surrendered, and appropriate notation shall be made
by the issuing office, on the War-Savings Certificates so surrendered,
of their receipt in exchange for Treasury Savings Certificates.



SECRETARY OF T H E TREASURY."

319

TRANSMISSION OF ORIGINAL REGISTRATION STUBS.

8. The original registration stubs detached from Treasury Savings
Certificates issued by any Federal Reserve Bank pursuant to this
circular shall be attached in each case to the Request for Exchange
submitted in connection with the issue of the Treasury Savings
Certificate, and forwarded monthly to the Secretary of the Treasury,
Division of Loans and Currency, Washington, with such Request for
Exchange, so as to reach the Treasury Department not later than the
month succeeding the month in which the Treasury Savings Certificate was issued. The War-Savings Certificates received in exchange
shall be canceled by the Federal Reserve Bank by punching a quarterinch hole through each stamp affixed thereto, and transmitted to the
Register of the Treasury, Washington, at the end of each month.
TRANSPORTATION

CHARGES AND RISKS.

9. No charge will be made by the United States for Treasury
Savings Certincates issued in accordance with the provisions of thi.s
circular, and when issued the certificates will be delivered at the risk
and expense of the United States. The holder of unregistered WarSavings Certificates presenting them for exchange for Treasury
Savings Certificates hereunder must, however, arrange for the delivery
thereof to the Secretary of the Treasury, Division of Loans and
Currency, Washington, or a Federal Reserve Bank, at his own risk
and expense. Recognized banking institutions throughout the
United States ordinarily offer to their customers facilities for the
transmission of unregistered War-Savings Certificates to the appropriate Federal Reserve Bank by registered mail insured, at small
expense, pursuant to authorized arrangements with Federal Reserve
Banks. Registered War-Savings Certificates presented for exchange
for Treasury Savings Certificates in accordance with the. provisions
hereof must be delivered to tbe post office where registered.
MISCELLANEOUS PROVISIONS.

10. Treasury Savings Certificates of the Series of 1918^ Series of
1919, and Series of 1920, authorized to beissued hereunder, will not
be issued against the surrender of War-Savings Certificates of any
other series (of whatever issue or denomination). Treasury Savings
Certificates, detached War-Savings Stamps, War-Savings Certificates
of the Series of 1918, Series of 1919, or Series of 1920, having an aggregate maturity value not $100 or some multiple thereof, Thrift Cards
with Thrift Stamps attached, detached Thrift Stamps, Treasury
Savings Cards with Treasury Savings Stamps attached, or detached
Treasury Savings Stamps. Post offices will be required to surrender
all Treasury Savings Certificates, Series of 1918, and all TreasurySavings Certificates, Series of 1919, and all Treasury Savings Certificates, Series bf 1920, held by them for exchange and remaining in
their hands unissued at the close of business ori December 31, 1920^
and all duplicate registration stubs for Treasury Savings Certificates,.
Series of 1918, and. Treasury Savings Certificates, Series of 1919,
issued by them during the calendar year 1920, in accordance with
instructions issued by the Postmaster General.



320

REPORT ON T H E FINANCES.

11. Subject to the provisions of this circular, all the provisions of
Treasury Department Circulars No. 143, dated July 1, 1919; No.
149, dated July 31, 1919, August 20, 1920; No. 166, dated November
15, 1919; No. 169, dated December 10, 1919; No. 170, dated
December 10, 1919; No. 171, dated December 10, 1919; and No.
178, dated January 15, 1920, as severally amended and supplemented,
apply to and govern, respectively. Treasury Savings Certificates of
the Series of 1918, Series of 1919, and Series of 1920, issued in exchange
for War-Savings Certificates pursuant to the provisions of this
circular.
12. The Secretary of the Treasury may at any time withdraw this
circular as a whole, or from' time to time amend any of the provisions
hereof. The Secretary of the Treasury may at any time withdraw
Treasury Savings Certificates, Series of 1918, Series of 1919, and of
Series of 1920, or any of them, from issue, refuse to issue or permit,
to be issued any such certificates, and refuse to issue or permit to
be issued any such certificates to any person, firm, corporation, or
asst>ciation.
13. The Secretary of the Treasury may make from time to time
any supplemental or amendaltory regulations which shall not modify
or impair the terms and conditions of Treasury Savings Certificates,
Series of 1918, Series of 1919, or Series of 1920, issued under the
provisions of the act approved September 24, 1917, as amended and
supplemented.
14. Further details and instructions may be announced by the
Secretary of the Treasury from time to time, information as to which
will be promptly furnished to the Postmaster General and the Federal
Reserve Banks.
D. F.

HOUSTON,

Secretary of the Treasury.
TREASURY DEPARTMENT
LOANS AND CURRENCY

Form General 1020
R E Q U E S T FOR EXCHANGE OF R E G I S T E R E D WAR-SAVINGS CERTIFICATES
. ( S E R I E S OF 1918, S E R I E S OF 1919, OR S E R I E S OF 1920)
F O R TREASURY SAVINGS (CERTIFICATES.
IMPORTANT.—When R E G I S T E R E D War-Savings Certificates, Series of 1918, Series of 1919, or Series
of 1920, are presented for exchange, this request must be presented only to the post office of registration. The postmaster at the post office of registration will, if satisfied as to the facts, execute the certificate given below and forward the request, with the War-Savings Certificates and the registration
cards therefor, on Forrri WS-110, by oflBcial registered mail to the Third Assistant Postmaster General,
Division of Stamps.

Dated.

,192

USE SEPARATE F O R M F O R EACH SERIES; CROSS OUT THE TWO YEARS NOT APPROPRIATE.
T o THE

POSTMASTER,

/
The undersigned herewith presents and surrenders $

aggregate matarity

(See note 1.)

[1918]
value, of R E G I S T E R E D United States War-Savings Certificates, Series of] 1919 L

ll920j

bearing the name of and duly receipted by the undersigned (see Note 2), and requests
that Treasury Savings Certificates of the same series and same raaturity value be
issued in exchange therefor, all in accordance with the pro\dsions of Treasury Depart-




SECRETARY OF T H E TREASURY.

321

ment Circular No. 217, dated December 15, 1920. The following name and address
shall be inscribed on the Treasury Savings Certificates to be issued hereon (see Note 8):
(First name in full. Indicate whether Mrs.or Miss,in cases of women.)(Middle name or initial.)(Last name.)
(Or complete legal name of corporation, partnership, or other person.)

Address
(Give full address.)

(Number.)
(City.)

(Street.)
^

(State.)

Autograph signatures of person or persons (or their duly authorized representatives)
[1918]
whose names are inscribed on War-Sa\dngs Certificates, Series of] 19191, presented
ll920j
for exchange:

CERTIFICATE BY POSTMASTER.
THIRD ASSISTANT POSTMASTER GENERAL, Division of Stamps.

I transmit herewith the War-Savings Certificates above described and
(How many.)

registration cards (Form WS-110) bearing the official record of the registration thereof.
I certify that the entries on the backs of said cards indicate the registration of a total
of
War-Savings Certificate Stamps, Series of 19..; and that the above
(How many.)

•

request was signed by

.

..

.

, who, I am satisfied, is the' registered
(Name of applicant.)

owner.

.

,
(Date.)

•
(Signature of postrriaster.)
(Postoffice.)
(TO

B E FILLED IN BY TREASURY

(State.)

DEPARTMENT.)

.....,,.....,...,.,...,,..192.;:,
[1918]
The serial numbers of the Treasury Savings Certificates, Series of] 1919 >, issued
.
.
[l920j
. .
pursuant to above request, are as follows:
NOTE 1.—Treasury Savings Certificates,'Series of 1918, Series of 1919, or Series of 1920, may be issued after
December 31,1920, only in exchange for one or more War-Savings Certificates, Series of 1918, Series of 1919,
or Series of 1920, respectively, which have an aggregate maturity value of SlOO, or some multiple .thereof,
no more, no less, and will not be issued on cash sale. In case two or more War-Savings Certificates, Series
of 1918, Series of 1919, or Series of 1920, are presented for. e;xchange,.the.certificates so presented may be
some registered and some unregistered, but in that event must be presented to the post oflice where the
registered certificates are registered. If two or more War-Savings Certificates, Series of 1918, Series of 1919,
or Series of 1920, are presented for exchange, each such certificate presented need not bear the full complement of twenty War-Savings Certificate Stamps, Series of 1918, Series of 1919, or Series of 1920, respectivelyprovided that the aggregate maturity value of the-certificates of the same series presented is $100, or some
multiple thereof, no more, no less.
NOTE 2.—The War-Savings Certificates, Series of 1918, Series of 1919, or Series of 1920, presented in
exchange must be duly receipted by the ovmev in the same mamier as if presented for payment. No
previous demand for payment of such certificates will be required, however, and the exchange will be
made in each case without payment to or by the United States.
NOTE 3.—The Treasury Savings Certificates, Series of 1918, Series of 1919, or Series of 1920, issued on
exchange will be inscribed in the same name as the War-Savings Certificates, Series of 1918, Series of 1919,
or Series of 1920,respectively, surrendered for exchange,„unlessanother,name and address shallbe indicated
in writing on this request, in which event the Treasury SaViiigs Certificates will be inscribed in the name
and address so indicated.
•NOTE 4.—This request must be attached to the registered War-Savings Certificates, ^Series of 1918,
Series of 1919, or the Series of 1920, surrendered for exchange, and forwarded by postmasters to the
Third Assistant Postmaster General, Division of Stamps, with the registration cards on Form WS-110.

70073—FI 1921




^^21

322

REPORT ON T H E FINANCES.

TREASURY DEPARTMENT
LOANS AND CURRENCY

Form General 1021

.

^

'

..

'

R E Q U E S T FOR EXCHANGE OF UNREGISTERED WAR-SAVINGS CERTIFICATES ( S E R I E S OF
1918, S E R I E S OF 1919, OR S E R I E S OF 1920) FOR TREASURY SAVINGS CERTIFICATES.
IMPORTANT.—When UNREGISTERED WarrSavings Certificates, Series of 1918, Series of 1919, or
Series of 1920, are presented for exchange, this request may be presented to any Federal Reserve Bank
or to the Secretary of the Treasury, Division of Loans and Currency, Washington. I t should not be presented to a postmaster, unless coupled with a similar request for exchange of registered War-Savings
Certificates. (See Note 1.)

Dated

,

,192

USE SEPARATE FORM FOR EACH SERIES; CROSS OUT THE TWO YEARS NOT APPROPRIATE.

To
The F E D E R A L R E S E R V E B A N K OF

Or
The

Fiscal Agent of the UnitedStates.

SECRETARY OF THE TREASURY,

Division of Loans and Currency,
Washington, D . C.
The undersigned herewith presents and surrenders $
(See note 1.)

aggregate maturity value, of U N R E G I S T E R E D United States War-Savings Certifi[1918]
cates, Series of 1919 [, bearing the name of and duly receipted by the undersigned

I1920J
(see Note 2), and requests that Treasury Savings Certificates of the same series and
same maturity value be issued in exchange therefor, all in accordance with the provisions of Treasury Department Circular No. 217, dated December 15, 1920. The
following name and address shall, be inscribed on the Treasury Savings Certificates to
be issued hereon (see Note 3):
(First name in full. Indicate whether Mrs. or Miss, in cases of women.)(Middle name or initial.)(Last name.)
(Or complete legal name of corporation, partnership, or other person.)

•Address ..
(Give full address.)
* • *" "

(City.)

(Number.)
"

(Street.)
" '(Stated)

" Autograph signatures of person or persons (or their duly authorized representatives)
[1918]
whose names are inscribed on War-Savings Certificates, Series of] 1919 \, presented
I1920J
for exchange:
(TO BE FILLED IN BY ISSUING OFFICE.)

..,192
1918
The serial numbers of the Treasury Savings Certificates, Series of- 1919 , issued pur1920
suant to above request, are as follows:

(Signature of Issuing Officer.)
NOTE 1.—Treasury Savings Certificates, Series of 1918, Series of 1919, or Series of 1920, may be issued after
December 31,1920, only in exchange for one or more War-Savings Certificates, Series of 1918, Series of 1919,
or Series of 1920, respectively, which have an aggregate maturity value of $100, or some multiple thereof,
no more, no less, and will not be issued on cash sale. In case two or more War-Savings Certificates, Series
of 1918, Series of 1919, or Series of 1920, ar« presented for exchange, the certificates so presented may be




SECRETARY OF THE. TREASURY.

323

some registered and some unregistered, but in that event must be presented to the post office where the
registered certificates are registered. If two or more War-Savings Certificates, Series of 1918, Series of 1919,
or Series of 1920, are-presented for exchange, each such certificate jpresented need not bear the full complement of twenty War-Savings Certificate Stamps, Series of 1918, Series of 1919, or Series of 1920, respectively,
provided t h a t t h e aggregate maturity value of the certificates of the same series presented is $100, or some
multiple thereof, no more, no less.
NOTE 2.—The War-Savings Certificates, Series of 1918, Series of 1919, or Series of 1920, presented in
exchange must be duly receipted by the owner in the same manner as if presented for payment. No
previous demand for payment of such certificates will be required, however, and the exchange will be
made in each case without payment to or by the United States.
NOTE 3.—The Treasury Savings Certificates, Series of 1918, Series of 1919, or Series of 1920, issued on
exchange will be inscribed in the same name as the War-Savings Certificates, Series of 1918, Series of 1919,
or Series of 1920, respectively, surrendered for exchange, unless another name and address shaU be indicated
in writing on this request, in which event the Treasury Savings Certificates will be inscribed in the name
and address so indicated.
NOTE 4.—This request must be attached to the original registration stubs detached from the Treasury
Savings Certificates issued on exchange and forwarded to the Secretary of the Treasury, Division of Loans
and Currency, Washington.

EXHIBIT

58.

[Department Circular No. 220. Loans and Currency.]

S U R R E N D E R OF WAR-SAVINGS C E R T I F I C A T E S AND
STAMPS,
S E R I E S OF 1920, T R E A S U R Y SAVINGS C E R T I F I C A T E S , S E R I E S
OF 1920, AND T H R I F T STAMPS, H E L D BY A U T H O R I Z E D A G E N T S
AND SALES STATIONS.
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,

Washington, December 20, 1920.
To agents and sales stations for the sale of War-Savings Certificates and
Stamps, series of 1920, agents for the sale of Treasury Savings
Certificates, series of 1920, Federal Reserve Banlcs, and others
concerned:
1. General provisions.—The sale of War-Savings Certificates and
Stamps, series of 1920, and of Treasury Savings Certificates, series of
1920, will cease at the close of business on December 31, 1920. All
sales stations for the issue and sale of War-Savings Certificates and
Stamps, series of 1920, are required to surrender all such certificates
and stamps held by them and remaining unsold at the close of business
on December 31, 1920, to an incorporated bank OT trust company on
or before January 20, 1921, or to the Federal Reserve Bank of the
' district in which such sales station is located, on or before January 31,
1921. Except as provided in paragraph 4 hereof with respect to
cash agents, all cash and collateral agents for the issue and sale of
such certificates and stamps or for the issue and sale of Treasury
Savings Certificates, series of 1920, are required to surrender on or
before January 31, 1921, all such certificates and stamps held by
them and remaining unsold at the close of business December 31,
1920, in each case to the Federal Reserve Bank of the district in
which the agent is located. Rules and regulations governing agencies for the distribution and sale during the calendar year 1921 of
Treasury Savings Certificates, series of 1921, War-Savings Certificates
and Stamps, series of 1921, Treasury Savings Stamps, and Thrift
Stamps, are prescribed in Treasury Department Circular No. 216,
dated December 15, 1920.
2. "The term ^'sales station^^ where it appears in this circular refers
to stations established under the authority of Treasury Department
Circular No. 181, dated February 10, 1920. The terms ''cash agent''
and ''collateral a g e n f where they appear in this circular refer,
respectively, to cash agents and collateral agents qualified under




324

REPORT ON THE FINANCES.

Treasury Department Circular No. 172, dated-December 10, 1919, as
amended and supplemented, for the sale of War-Savings Certificates
and Treasury Savings Certificates, series of 1920.
SALES STATIONS.

3. Every sales station is required to surrender all unsold WarSavings Certificates and Stamps, series of 1920, remaining in its
hands unsold at the close of "business on December 31, 1920, to an
incorporated bank or trust company in the Federal Reserve district
in which it is located, on or before January 20, 1921, or to the Federal
Reserve Bank of the district, on or before January 31, 1921. Federal
Reserve Banks and incorporated banks and trust companies are
hereby authorized to receive such certificates and stamps so surrendered and to make cash reimbursement in each case to the sales
station for the War-Savings Certificate Stamps, series of 1920, so
surrendered at the rate of $4.24 for each stamp. The surrender of
such stamps by a sales station may be accepted by the Federal
Reserve Bank or an incorporated bank or trust company only upon
presentation by such sales station of its Sales Station Identification
Card, or other satisfactory evidence of its designation as .a sales
station for the issue and sale of War-Savings Certificates and Stamps.
Any incorporated bank or trust company so receiving War-Savings
Certificates and Stamps, series of 1920, must deliver such certificates
and stamps on or before January 31, 1921, to the Federal Reserve
Bank of its district, together with a schedule setting forth the names
of the authorized sales stations from which the stamps have been
received and the number of starops received from each sales station.
On receipt thereof, the Federal Reserve Bank, as fiscal agent of the
United States, will make cash reimbursement to such incorporated
bank or trust company for the War-Savings Certificate Stamps,
series of 1920, so surrendered, at the rate of $4.24 for each stamp.
No Federal Reserve Bank or incorporated bank or trust company
shall accept from any one sales station the surrender of War-Savings
Certificate Stamps, series of 1920, in excess of $1,000 (maturity value)
without special authority from the Secretary of the Treasury.
CASH AND COLLATERAL AGENTS.

4. Cash agents.—l^vevJ cash agent is required to surrender on or
before January 31, 1921, to the'Federal Reserve Bank from which
the certificates and stamps were obtained, all Treasury Savings
Certificates, series of 1920, and all War Savings Certificate Stamps,
series of 1920, held by such agent for issue and sale-to the public and
remaining unsold at the close of business December 31, 1920; provided, howeyer, that any cash agent which shall have sold Treasury
Savings Certificates of the series of 1920 under ari approved partial
J)ayment plan which calls for payments after December 31,1920, with
t h e final installment on or before September 30, 1921, shall be permitted to surrender unsold stocks of such Treasury Savings Certificates until October 31,1921. Upon any such surrender each such ()ash
agent will be entitled to cash reimbursement for the Treasury Savings
Certificates and War Savings Certificate Stamps so surrendered at
a rate equivalent to the current redemption value thereof during the




SECRETARY OE THE TREASURY.

325

month in which such surrender is made, not later than the month in
which the certificates and stamps are required to be surrendered.
In lieu of such reimbursement, any cash agent that shall be duly
qualified as a cash agent for the issue and sale of-Treasury Savings
Certificates and War Savings Certificates, series of 1921, under the
provisions of'Treasury Department Circular No. 21-6, dated December 15, 1920, may, at the option of such agent, receive Treasury
Savings Certificates, series of 1921, and War Savings Certificate
Stamps, series of 1921, computed at the current issue price thereof,
United States Treasury Savings Stamps computed at $1 each,
United States Thrift Stamps computed at 25 cents each, and cash,
to an aggregate value so computed not exceeding the amount to be
reimbursed. No Federal Reserve Bank shall accept from any cash
agent the surrender of War Savings Certificate Stamps, series of 1920,
and Treasury Savings Certificates, series of 1920, to an aggregate
maturity value in excess of the agent's authority to hold, without
special authorit}'- therefor from the Secretary of the Treasury.
5. CoUateral agents.—Every collateral agent is required to surrender
on or before January 31, 1921, to the Federal Reserve Bank from
which they were obtained, all Treasury Savings Certificates, series
of 1920, and all War Savings Certificate Stamps, series of 1920, obtained by such agent from such Federal Reserve Bank, and not sold
before the close of business December 31, 1920, and upon such
surrender shall receive appropriate credit for the certificates and
stamps so surrendered in its account with such Federal Reserve
Bank.
POST OFFICES.

, 6. Post oflices will be required to surrender all Treasury Savings
Certificates, series of 1920,, and War Savings Certificates and Stamps,
series of 1920, held by them for sale and remaining in their hands
unissued or unsold at the close of business on December 31, 1920, and
all duplicate registration stubs for Treasury Savings Certificates,
series of 1920, issued by them during the calendar year 1920, in ac-.
cordance with instructions issued by the Postmaster GeneraL No
post office shall accept the surrender of any unissued Treasury Savings Certificates, War Savings Certificate Stamps or Thrift Stamps
from any agent or sales station for the sale of War Savings Certificates or Treasury Savings Certificates other than a postal agent.
SURRENDER OF THRIFT STAMPS,

7. United States Thrift Stamps, issued at any time on or after
December 3, 1917, will be on sale during 1921, and appropriate arrangements will be made for the exchange of filled Thrift Cards for
War Savings Certificate Stamps, series of 1921. Duly qualified
agents and sales stations for the sale of War Savings Certificates,
series of 1921, under the provisions of Treasury Department Circular
No. 216, dated December 15, 1920, will therefore not be required to
surrender unsold Thrift Stamps remaining in their hands at the close
of business on December 31, 1920. Agents and sales stations who
do.not undertake the sale of War Savings Certificates, series of 1921,
are required to surrender, and other agents and sales stations at their
option may surrender, unsold Thrift Stamps remaining in their




326

REPC)RT ON THE FINANCES.

hands at the close of business on December 31, 1920, to the Federal
Reserve Bank of the. district, on or before January 31, 1921, in the
same manner as unsold War Savings Certificate Stamps, series of
1920, and will receive credit or cash reimbursement, as the case may
be, from such Federal Reserve Bank, as fiscal agent of the United
vStates, for the Thrift Stamps so surrendered at the rate of 25 cents
each; provided, however, that sales stations may surrender, and incorporated banks and trust companies and Federal Reserve Banks
are authorized to accept, such unsold Thrift Stamps, with cash reimbursement therefor at the rate of 25 cents each, in accordance with
the procedure applicable to War Savings Certificate Stamps under
paragraph 3 hereof.
SURRENDER OF BLANK WAR SAVINGS CERTIFICATES, SERIES OF 1920.

8. Every cash or collateral agent and sales station shall surrender
all blank War Savings Certificates, series of 1920, held by it unissued
at the close of business on December 31, 1920, at the same time and
in the same manner as the War Savings Certificate Stamps, series of
1920, surrendered by it in accordance with this circular: Provided,
however. That no credit will be given nor reimbursement made for
blank certificates so surrendered.
SURRENDER

OF DUPLICATE REGISTRATION STUBS
SAVINGS CERTIFICATES.

FROM

TREASURY

9. Every cash or collateral agent which qualified as an agent for
the issue and sale of Treasury Savings Certincates, series of 1920, in
accordance with the provisions of Treasury Department Circular No.
172, dated December 10, 1919, as amended and supplemented, is
required to surrender on or before November 30, 1921, to the Federal
Reserve Bank from which such certificates were obtained, all duplicate registration stubs from the Treasury Savings Certificates, series
of 1920, issued by such agent. The Federal Reserve Bank receiving ^
such stubs will forward them on or before Deceinber 10, 1921, to the
Secretary of the Treasury, Division of Loans and Currency, Washington.
MISCELLANEOUS PROVISIONS.

10. The provisions of this circular as to the.surrender of Treasury
Savings Certificates, series of 1920, War Savings Certificate Stamps,
series of 1920, and United States Thrift Stamps, apply only to unissued certificates and stamps and to duly authorized agents and
sales stations, and in the case of cash or collateral agents, apply only
to such certificates and stamps as were obtained by such agents from
the Federal Reserve Bank to which they are presented for surrender.
No incorporated bank or trust company is authorized hereunder to
accept the surrender of any such certificates or stamps from anyone
other than a duly authorized sales station for the sale thereof, and
no Federal Reserve Bank is authorized hereunder to accept the surrender of any Treasury Savings Certificates, War Savings Certificate
Stamps, or Thrift Stamps from any cash or collateral agent which
were'not obtained from it by such agent: Provided, however. That
Federal Reserve Banks are authorized to accept War Savings Cer-




SECRETARY OF THE TREASURY.

327

tificate Stam.ps and Thrift Stamps from incorporated banks and
trust companies, in accordance with the provisions of paragraphs 3
and 7 hereof. Except as herein otherwise specifically provided in
paragraph 4, no Federal Reserve Bank is authorized hereunder to
accept the surrender of any certificates or stamps (except blank War
Savings Certificates) presented to it after January 31, 1921, without
special authority therefor in each case from the Secretary of the
Treasury.
11. All cases in which Treasury Savings Certificates, series of 1920,
War Savings Certificate Stamps, series of 1920, or Thrift Stamps are
presented for surrender hereunder contrary to the provisions of this
circular should be promptly referred to the Secretary of the Treasury, Division of Loans and Currency, Washington, for further instructions.
12. The Secretary of the Treasury may at any time withdraw this
circular as a whole, or amend from time to time any of the provisions
thereof, and may, from time to time, make any supplemental or
amendatory regulations which shall not modify or impair the terms
and conditions of United States War Savings Certificates, series of
1920, of whatever issue or denomination, issued in pursuance of the
act of September 24, 1917, as amended and supplemented.
D. F. HOUSTON,

Secretary of the Treasury.
EXHIBIT

59.

[Department Circular No. 149, Revised. Loans and Currency.]
UNITED

STATES

OF

AMERICA—TREASURY
CATES.

SAVINGS

CERTIFI-

TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,

Washington, Ju^e 25, 1921.
To Holders of Treasury Savings Certificates and Others Concerned:
Treasury Depjartment Circular No. 149, dated July 31, 1919, with
regard to the rights of holders of Treasury Sayings Certificates, as
heretofore amended and extended, is hereby amended so as to read
as follows: The following Treasury Department regulations further
define the rights of holders of Treasury Savings Certificates and
determine the terms and conditions upon which Treasury Savings
Certificates will be payable in case of the death or disability of the
owner:
.
I.
C E R T I F I C A T E S N O T PRESENTED A T MATURITY.

Treasury
maturity.

Savings

Certificates

shall

not

bear

interest

after

LOST, STOLEN, OR DESTROYED CERTIFICATES.

In the event of the loss, theft, or destruction of a Treasury Savings
Certificate duly issued and registered in accordance with the regulations and instructions governing issue and registration, the registered




328?

-REPORT ON THE FINANCES.

owner may apply to the Secretary of the Treasury, Division of Loans
and, Currency, Washington, on a form prescribed by the Secretary of .
the Treasury (L. & C. 275), either for the issuance of a duplicate
certificate or for the payment of the original certificate. On being
• satisfied of the facts as to loss or destruction, the Secretary of the
Treasury will, after not less than three months have elapsed from the
time of application, issue to the registered owner a duplicate certificate
or make payment of the original certificate, but no duplicate certificate
will be issued after maturity of the original. Any duplicate certificate
so issued shall be marked " duplicate," but shall receive a new number
and bear a notation of the number of the original certificate. Appropriate notation of the issue of the duplicate certificate or payment of
the original certificate will be made on the registration records of the
Treasury Department. The Secretary of the' Treasury may, in
special cases where he deems the facts warrant such action, require
the claimant to give a bond of indemnity, with approved sureties,
against any claim that may thereafter be made on the original
certificate. The duplicate certificate when issued shall stand for all
purposes in the place and stead of the original lost, stolen, or destroyed certificate. After the issuance of a duplicate certificate, or
the payment of the original certificate, the original shall cease to
have validity for any purpose, and if recovered shall be returned to
the Secretary of the Treasury, Division of Loans and Currency,
Washington, for cancellation.
III.
CREDITORS' RIGHTS.

Payment of Treasury Savings Certificates will be made to the
owner named thereon, notwithstanding any lien, attachment, trustee
process, garnishment, judgment, receivership, levy, execution, order,
decree, or similar process of law, equity, or in bankruptcy directed
against the owner thereof, but nothing herein contained shall excuse
the owner from full compliance with, or performance of, any lawful
judgment, order, or decree of a court of competent jurisdiction with
reference to disposition of the proceeds of the certificate. CoUection
of the certificate by the owner pursuant to such judgment, order,
or decree will be deemed a payment received on behalf of the owner
and not for any other person within the language of the demand
printed on the certificate, notwithstanding that the owner is, by
such judgment, order, or decree, required to pay the proceeds to
another person. Neither the United States of America nor any
officer or employee thereof shall be a proper or necessa^-y party to
any suit or action with reference to such certificate or the proceeds
thereof nor be bound by any judgment, order, or decree rendered or
entered therein.
IV.
HOLDING

OF TREASURY SAVINGS CERTIFICATES BY
:
PARTNERSHIPS, AND OTHERS.

CORPORATIONS,

1. Treasury Savings Certificates may be issued and registered in
the name of and held by corporations, partnerships, associatioris, or
joint-stock companies.




.^

SECRETARY OF T H E TREASURY.

329

2. Payment of a certificate registered in the name of a corporation,
association, or joint-stock company will be made to such corporation,
association, or joint-stock company, provided the form of demand for
payment on the certificate is duly executed in the name of such
corporation, association, or joint-stock company, and duly signed by
a duly authorized officer thereof, over his official title; and payment
of a certificate registered in the name of a partnership will be made to
such partnership, provided the form of demand for payment on the
certificate is duly executed in the name of such partnership, and duly
signed by one of the partners thereof, as a member of the firm. No
designation may be made on the certificate or registration stub of an
officer or agent to receive payment on behalf of a corporation, partnership,- association, or joint-stock.company.
V.

; •

FIDUCIARIES.

Treasury Savings Certificates may be issued and registered iii the
names of fiduciaries in their representative capacities. Payment of
any such certificate will be made to the fiduciary or fiduciaries, except
that in the event of the death or disqualification of the fiduciary or
fiduciaries, payment may be made, in the discretion of the Secretary
of the Treasury, to the person or persons in his opinion beneficially
entitled thereto. In determining whether the $1,000 limitation on
the holdings of a single person has been exceeded, the full maturity
value of Treasury Savings Certificates of any one series held for the
benefit of such person in the name of a fiduciary or fiduciaries shall be
added to the full maturity value of United States War-Savings
Certificates, of the same series, of. whatever issue or denomination,
held by such person in his own name and the sum must not exceed
$1,000 (maturity value).
VL
TREASURY SAVINGS ^CERTIFICATES ISSUED TO TWO PERSONS.

Treasury Savings Certificates may be issued and registered in t h e '
names of two persons (but not more than two) in the alternative, as,
for instance, " J o h n Jones OR Mary Jones." Such certificates will
be payable to either person named th^ereon without requiring the
signature of the other person and to the survivor of them without
proof of the other person's death, and upon payment to either person
the other shall cease to have any interest therein. No other form of
certificate in the names of two persons is authorized, except to the
extent permitted by Paragraphs V and I X of this circular. When
certificates are issued in the alternative, the names and addresses of
both persons shall be inscribed on the certificates and on the registration stubs. In determining whether the $1,000 limitation on the
holdings of a single person has been exceeded, the full maturity value
of United Stated War-Savings Certificates of any one series, of. whatever issue or denomination, held with any other person shall be added
to the full maturity value of such certificates held individually, and
the sum must not exceed $"1,000 (maturity value) of the same series.




330

REPORT ON THE FINANCES. .

-

^

VIL

INFANT H 0 L D F ; R S OF TREASURY SAVINGS CERTIFICATES.

1. Treasury Savings Certificates may be issued and registered in
the name of an infant.
2. If a guardian of the property has, to the knowledge of the
Secretary of the Treasury, oeen appointed for an infant owner of a
Treasury Savings Certificate, payment of the certificate will be made
only to such guardian, upon presentation of proof satisfactory to the
Secretary of the Treasury of his appointment and qualification.
3. If an infant holder of^a Treasury Savings Certificate for whom
no such guardian has been appointed to the knowledge of the Secre. tary of the Treasury is, at the time payment of such certificate is demanded, of sufl&cient competency and understanding, in the opinion
of the Secretary of the Treasury, to sign his name to the demand and
to comprehend the nature thereof,- payment will be made directly to
such infant owner. In the event that such infant is not, in the
opinion of the Secretary of the Treasury, of such competency and
understanding, payment will be made to either parent of the infant
with whom the infant resides, or, in the event that such infant
resides with neither parent, then to the person with whom such
infant resides. In making demand for payment, the representative
shall sign the infant's name as well as the name of such representative.
4. Issuance of a duplicate for, or payment of, a lost, stolen, or destroyed certificate which has been registered in the name of an
infant will be to the infant or to a representative, ^as hereinbefore
provided, upon compliance with the regulations respecting lost,
stolen, or destroyed certificates.
VIII.
DISABILITY OF HOLDERS OF TREASURY SAVINGS CERTIFICATES.

1. Treasury Savings Certificates held by persons legally declared
to be incompetent to manage their aflfairs, and for whose estate a
conservator or other legally constituted representative has been appointed by a court of competent jurisdiction, to the knowledge of
the Secretary of the Treasury, will be paid to such conservator or
legal representative, upon presentation of proof satisfactory to the
Secretary of the Treasury of his appointment and qualification.
.2. Certificates held by persons under any other disability will be
paid only to the registered owners of the certificates, except as herein
otherwise provided.
IX.
REGISTRATION

OF TREASURY SAVINGS CERTIFICATES IN
BENEFICIARY.

FAVOR

OF

1. Treasury Savings Certificates may be issued and registered
payable to a single designated beneficiary in case of death of the
registered owner, as, for instance, " J o h n Smith, payable on death to
Mary Smith." In that event the issuing iigent shall at the time of
issue inscribe on the certificate and on the registration stub the




SECRETARY OF THE TREASURY.

-

331

words "Payable on death to
^," inserting the name and address
of the beneficiary. Such certificates will be payable to the registered
owner during his or her lifetime, and to the: beneficiary upon death
of the owner, provided the beneficiary be then living. If the beneficiary shall predecease the registered owner, the certificate will be
Say able to the owner as though such beneficial registration had not
een made. Second registration in favor pf another beneficiary, or
change of beneficiary, will not be permitted.
2. Should the beneficiary die after the death of the registered
owner, but before payment of the certificate, the regulations covering
payment of certificates held by a deceased owner shall govern the
payment of the certificate as though. the beneficiary were such a
deceased owner.
X.
PAYMENT OP TREASURY SAVINGS CERTIFICATES HELD BY DECEASED
OWNER.

In the case of the death of the owner of a Treasury Savings Certificate (other than a certificate registered payable to a beneficiary), payment will be made to the persons and in the manner hereinafter
provided:
1. If the decedent leave a will which is duly admitted to probate,
or die intestate and the estate of such decedent is administered in a
court of competent jurisdiction, payment of such certificate will be
made only to the duly appointed representative of the estate. Administration will be required before payment of a Treasury Savings
Certificate will be made in all cases where the gross personal estate of
the deceased owner exceeds $500 in value, unless it is shown by proof
satisfactory to the Secretary of the Treasury that administration of
the estate of such decedent is not required in the State of the decedent's
domicile.
2. In case no legal representative of the decedent's estate is appointed and either the gross personal estate does not exceed $500 in
value or it is shown by proof satisfactory to the Secretary of the
Treasury that administration of the estate of such decedent is n o t .
required in the State of the decedent's domicile, the certificate will
be paid to and on .the demand of persons equitably entitled thereto
in the opinion of the Secretary of the Treasury, in the following order
of classes:
«
First. Husband, wife, next of kin, or other person, who pays the
reasonable funeral expenses, expenses of the last illness, or other preferred claims against the decedent's estate.
Second. Creditor for funeral experises, expenses of last illness, or
other preferred claims.
Third. Husband, wife, or next of kin of the deceased, in the following order of preference:
(1) Husband or wife;
(2) Child or children;
(3) Father;
(4) Mother;
(5) Any other of the next of kin of the deceased;
provided, however, that nothing herein contained shall require the
payment of a single certificate to more than one person.




332

REPORT ON THE FINANCES.

XL
SIGNING DEMAND FOR PAYMENT.

Whenever, pursuant to these regulations, payment of a Treasury
Savings Certificate is demanded by a person not the original owner
thereof, the form of demand for payment appearing on the certificate
need not be signed, but such person shall sign in the prescribed manner
a form of demand for payment (L. & C. 278) which may be obtained
on application to the Secretary of the Treasury, Division of Loans and
Currency, Washington, and which shall be pasted on the certificate
over the form of demand appearing thereon, substantially as follows:
FORM OF D E M A N D FOR

PAYMENT.

The undersigned is the person entitled to payment of this certificate. Serial No
•
under the regulations prescribed by the Secretary of the Treasury, in place of
....
, the original owner whose name is inscribed hereon, and hereby demands
payment hereof. Said original owner (or his estate) does not hold United States WarSavings Certificates of any one series, of whatever issue or denomination, to an aggregate amount exceeding $1,000, maturity value.
(Date.)

(Signature of payee.)

Personally appeared before me

No. and street.
Town or city
State
known or proved to me to be
(Name.of payee.)

.--

.of the original owner whose name is inscribed on said certificate,

(State connection with original owner.)

•

'

and signed the above demand for payment, acknowledging the same to be his free act
and deed. Witness my hand and official designation:.
Dated.at ^
,19
[SEAL.]

.

(Signature of attesting officer.)
' (Official designation.)

XII.
INHERITANCE TAXES.

Payment of Treasury Savings Certificates will be made without
any deduction for inheritance, estate, or transfer taxes on death of a
deceased owner, either State or Federal, and no claim shall lie against
the United States or any officer or employee thereof for failure to
deduct or withhold any such tax. The person to whom payment of
the certificate is made shall be liable for all such taxes, if any shall be
due, and the lien thereof shall attach to the proceeds of the certificate
in his hands.
XIII.
CHANGE OF NAME.

In case the name of the owner of a Treasury Savings Certificate has
since the issuance of the certificate been changed by marriage or by
order or decree of court, the Secretary of the Treasury will accept the
owner's demand for payment signed in the new name, as well as in
the original name, upon being satisfied of the identity of theperson.




SECRETARY OF THE TREASURY.
•• X I V .

•

-

333

' '•

LIMITATION IN AMOUNT.

.

Under the provisions of section 6 of the act of Congress approved
September 24, 1917, as amended, it is not lawful for any one person
at any one time to hold United States War-Savings Certificates of any
one series (of whatever issue or denomination) to an aggregate amount
exceeding $1,000 (maturity value). As to each series, the issue of
Treasury Savings Certificates and the issue of War-Savings Certificates
are' included within the same series of United States War-Savings
Certificates for the purpose of determining whether the limitation on
the holdings of a single person has been exceeded. For further regulations governing holdings of United States War-Savings Certificates
in excess of the legal limit, see Treasury Department Circular No. 178,
dated January 15, 1920, as extended by Treasury Department Circular No. 215, dated December 15, 1920.
XV.
ADMINISTRATION.

The adininistration of the foregoing regulations shall be in accordance with such forms and administrative regulations and instructions
as the Secretary of the Treasury shall from time to time prescribe.
The Secretary of the Treasury may in any case accept as sufficient
proof of the identity or of the competency and understanding of the
person making demand for payment, the fact that the form of demand
tor payment has been signed in the presence of and duly certified by
a United States postmaster, an executive officer of an incorporated
bank or trust company or any other person duly desigriated by the
Secretary of the Treasury for the purpose.
The Secretary of the Treasury may make, from time to time, any
further or supplemental or amendatory regulations which shall not
modify or impair the terms and conditions of Treasury Savings Certificates issued in pursuance of the act of Congress approved September
24, 1917, as amended and supplemented.
A. W.

MELLON,

Secretary of the Treasury.
EXHIBIT

60.

[Department Circular No. 228. Division of PubJic Moneys.]

DISCONTIN^LTANCE

OF T H E U N I T E D S T A T E S
CINCINNATI, OHIO.

SUBTREASURY

AT

TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,

Washington, February 8, 1921.
To all concerned:
, \
1. The Legislative, Executive, and Judicial Appropriation Act,
approved May 29, 1920, provides in part as follows with respect to the
discontinuance of the Subtreasuries of the United States:
INDEPENDENT TREASURY.

Section 3590 of,the Revised Statutes of the United States, as amended, providing
for the appointment of an Assistant Treasurer of the United States at Boston, New
York, Philadelphia, Baltimore, New Orleans, St. Louis, San Francisco, Cinciiina,ti,




334

. REPORT ON T H E FINANCES.

and Chicago, and all laws or parts of laws so far as they authorize the establishment or
maintenance of offices of such ^Assistant Treasurers or of Subtreasuries of the United
States are hereby repealed from and after July 1, 1921; and the Secretary/of the Treasury is authorized and directed to discontinue from and after such date, or at such
earlier date or dates as he may deem advisable, such Subtreasuries and the exercise
of all duties and functions by such Assistant Treasurers or their offices. The office of
each Assistant Treasurer specified above and the services of any officers or other
employees assigned to duty at his office shall terminate upon the discontinuance of
the functions of that office by the Secretary of the Treasury.

2. By virtue of the authority vested in the Secretary of the Treasury under the provisions of the act above quoted, I hereby discontinue the Subtreasury of the United States at Cincinnati, Ohio, and
the exercise of all duties and functions by the Assistant Treasurer of
the United States at said Subtreasury, from and after the close of
business on Thursday, February 10, 1921. Upon such discontinuance the office of the Assistant Treasurer of the United States at
Cincinnati, and the services of any and all officers or other employees
assigned to duty at his oflSce shall terminate in accordance with the
statute.
3. The Secretary of the Treasury has made provision, pursuant to
the authority conferred by said act approved May 29, 1920, to transfer
the duties and functions performed or authorized to be performed by
the Assistant Treasurer at Cincinnati, or his office, to the Treasurer
of the United States and the Mints and Assay Offices of the United
States, and will utilize the Cincinnati branch of the Federal Reserve
Bank of Cleveland, Ohio, acting as depositary or fiscal agent of the
United States, for the purpose of performing certain of such duties
and functions. The Cincinnati branch of the Federal Reserve Bank
of Cleveland will be prepared, on and after Thursday, February 10,
1921, to handle exchanges of United States paper currency and
United States coin, pursuant to rules and regulations prescribed by
the Secretary of the Treasury. Upon the discontinuance of the Subtreasury at Cincinnati outstanding gold certificates payable to order,
issued by the Assistant Treasurer of the United States at Cincinnati,
will be received for payment by the Cincinnati branch of the Federal
Reserve Bank of Cleveland or the Treasurer of the United States at
Washington.
D. F . HOUSTON,

Secretary ofthe Treasury.
EXHIBIT

61.

[Department Circular No. 213. Division of Public Moneys.]

DISCONTINUANCE OF THE UNITED STATES SUBTREASURY AT
NEW YORK, N. Y.
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,

Washington, December 3, 1920.
To all concerned:
1. The Legislative, Executive and Judicial Appropriation Act,
approved May 29, 1920, provides in part as follows, with respect to
the discontinuance of the Subtreasuries of the United States:
INDEPENDENT TREASURY.

Section 3595 of the Revised Statutes of the United States, as amended, providing for
the appointment of an Assistant "^Treasurer of the United States at Boston, New York,
Philadelphia, Baltimore. New Orleans, St. Louis, San Francisco, Cincinnati, and




SECRETARY OF THE TREASURY,

335

Chicago, and all laws or parts of laws so far as they authorize the establishment or
maintenance of offices of such Assistant Treasurers or of Subtreasuries of the United
States are hereby repealed from and after July 1, 1921; and the Secretary of the
Treasury is authorized and directed to discontinue from and after such date or at such
earlier date or dates as he may deem advisable, such Subtreasuries and the exercise
of all duties and functions by such Assistant Treasurers or their offices. The office of
each Assistant Treasurer specified above and the services of any officers or other
employees assigned to duty at his office shall terminate upon the discontinuance of
the functions of that officeby the Secretarj^ of the Treasury.

2. By virtue of the authority vested in t h e S e c r e t a r y of the
Treasury under the provisions of the act above quotecl, I hereby discontinue the Subtreasury of the United States at New York, N. Y.,
and the exercise of all duties and functions by the Assistant Treasurer
of the United States at said Subtreasury, from and after the close of
business on Monday, December 6, 1920. Upon such discontinuance
the oflGice of the Assistant Treasurer of the United States at New York
and the services of any and all officers or other employees assigned
to duty at his ofl&ce shall terminate in accordance with the statute.
3. The Secretary of the Treasury has made provision, pursuant to
the authority conferred by said act approved May 29, 1920, to transfer
the duties and functions performed or authorized to be performed'by
the Assistant Treasurer at New York, or his office, to the Treasurer
of the United States and the Mints and Assay Offices of the United
States, and will utilize the Federal Reserve Bank of New York,
acting as depositary or fiscal agent of the United States, for the
purpose of performing certain of such duties and functions. The
Federal Reserve Bank of New York will be prepared on and after
December 7, 1920, to handle exchanges of United States paper
currency and United States coin, pursuant to rules and regulations
prescribed by the Secretary of the Treasury. Upon the discontinuance of the Subtreasury at New York, outstanding gold certificates
payable to order, issued by the Assistant" Treasurer of the United
States at New York, will be received for payment by the Federal
Reserve Bank of New York or the Treasurer of the United vStates
at Washington.
D.

F. HOUSTON,

Secretary of fhe Treasury.
EXHIBIT

62.

[Department Circular No. 219. Division of Public Moneys.)

DISCONTINUANCE OF THE UNITED STATES SUBTREASURY AT
SAN FRANCISCO, CALIF.
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,

Washington, December 16, 1920.
To all concerned:
1. The Legislative, Executive and Judicial Appropriation Act,
approved May 29, 1920, provides in part as follows, with respect to
the discontinuance of the Subtreasuries of the United States:
INDEPENDENT TREASURY.

Section 3595 of the Revised Statutes of the United States, as amended, providing for
the appointment of an Assistant Treasurer of the United States at Boston, New York,
Philadelphia, Baltimore, New Orleans, St. Loiiis, San Francisco, Cincinnati, and
Chicago, and all laws or parts of laws so far as they authorize the establishment or
maintenance of offices of such Assistant Treasurers or of Subtreasuries of the United




336

- . REPORT ON T H E FINANCES.

States are hereby repealed from and after July 1, 1921; and the Secretary of the
Treasury is authorized and directed to discontinue from and after such date or at such
earlier date or dates as he may deem advisable, such Subtreasuries and the exercise
of all duties and functions by such Assistant Treasiirers or their offices. The office of
each Assistant Treasurer specified above and the services of any officers or other
employees assigned to duty at his office shall terminate upon the discontinuance of the
functions of that office by the Secretary of the Treasury.

2. By virtue of the authority vested in t h e . Secretary of the
Treasury under the provisions of the act above quoted, I hereby
discontinue the Subtreasury of the United States at San Francisco,
Calif., and the exercise of all duties and functions by the Assistant
Treasurer of the United States at said Subtreasury, from and after
the close of business on Monday, December 20, 1920. Upon such
discontinuance the office of the Assistant Treasurer of the United
States at San Francisco and the services of any and all officers or
other employees assigned to duty at his office shall terminate in
accordance with the statute.
3. The Secretary of the Treasury has made provision, pursuant to
the authority conferred by said act approved May 29, 1920, to
transfer the duties and functions performed or authorized to be
performed by the Assistant Treasurer at San Francisco, or his office,
to the Treasurer of the United States, and the Mints and Assay
Ofl&ces. of the United States, and will utilize the Federal Reserve
Bank of San Francisco, acting as depositary or fiscal agent of the
United States, for the purpose of performing certain of such duties
and functions. The Federal Reserye Bank of San Francisco will
be prepared on and after December 21, 1920, to handle exchanges of
United States paper currency and United States coin, pursuant to
rules arid regulations prescribed, by the Secretary of the Treasury.
Upon the discontinuance of the Subtreasury at San Francisco, outstanding gold certiJficates payable to order, issued by the Assistant
Treasurer of the United States at San Francisco, will be received for
payment by the Federal Reserve Bank of San Francisco or tho
Treasurer of the United States at Washington.
D.

F.

HOUSTON,

Secretary of the Treasury.
EXHIBIT

63.

[Department Circular No. 221. Division of Public Moneys.]

DISCONTINUANCE OF THE UNITED STATES SUBTREASURY AT
NEW ORLEANS, LA.
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,

Washington, January 3, 1921..
To all concerned:
1. The Legislative, Executive, and Judicial Appropriation Act,,
approved May 29, 1920, provides in part as follows, with respect to
the discontinuance of the Subtreasuries of the United States:
INDEPENDENT TREASURY.

Section 3595 of the Revised Statutes of the United States, as amended, providing for
the appointment of an Assistant Treasurer of the United States at Boston, New York,
Philadelphia, Baltimore, New Orleans, St. Louis, San Francisco, Cincinnati, and
Chicago, and all laws or parts of laws so far as they authorize the establishment or




SECRETARY OF THE TREASURY.

337

maintenance of offices of such Assistant Treasurers or of Subtreasuries of the United
States are hereby repealed from and after July 1, 1921; and the Secretary of the Treasury is authorized'and.directed to discontinue from and after such date or at such
earlier date or dates as he may deem advisable, such Subtreasuries and the exercise of
all duties and functions bj^ such Assistant. Treasur ers or their offices. The office of
each Assistant Treasurer specified above and the services of any officers or other em, ployees assigned to duty at his office shall terminate upon the discontinuance of the
functions ol' that office by the Secretary of the Treasury.

2. By virtue of the authority vested in the Secretary of the Treasury under the provisions of the act above quoted, I hereby discontinue the Subtreasury of the Uriited States at New Orleans, La., and
the exercise of all duties and functions by the Assistant Treasurer of
the United States at said Subtreasury, from and after the close of
business on Wednesday, January 5, 1921. Upon such discontinuance the office of the Assistant Treasurer of the United States at
New Orleans, and the services of any and all ofl&cers or other employees assigned to duty at his office shall terminate in accordance
with the statute.
3. The Secretary of the Treasuryhas made provision, pursuant to
the authority conferred by said act approved May 29, 1920, to
transfer the duties and functions performed or authorized to be performed by the Assistant Treasurer at New Orleans, or his oflftce, to
the Treasurer of the United States and the Mints and Assay Ofiices of
the United States, and will utilize the New Orleans branch of the
Federal Reserve Bank of Atlanta, Ga., acting as depositary or fiscal
agent .ofcthe United States, for the purpose of performing certain of
such duties and functions. The New Orleans branch of the Federal
Reserve Bank of Atlanta will be prepared, on and after January 5,
1921, to handle exchanges of United States paper currency and United
States coin, pursuant to rules and regulations prescribed by the
Secretary of the Treasury. Upori the discontinuance of the Subtreasury at New Orleans, outstanding gold certificates payable to
order, issued by the Assistant Treasurer of the United States at New
Orleans, will be received for payment by the New Orleans branch of
the Federal Reserve Bank of Atlanta or the Treasurer of the United
States at Washington.
D.

F . HOUSTON,

Secretary of the Treasury.
E X H I B I T 64.
[Department Circular No. 223. Division of Public Moneys.]

DISCONTINUANCE OF THE UNITED STATES SUBTREASURY AT
ST. LOUIS, MO.
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,

Washington, January 6, 1921.
To all concerned:
1. The Legislative, Executive, and Judicial Appropriation Act,
approved May 29, 1920, provides in part as follows with respect jbo
the discontinuance of the Subtreasuries of the United States:
INDEPENDENT TREASURY.

Section 3595 of the Revised Statutes of theUnited States, asamended, providing for
the appointment of. an Assistant Treasurer of the United States at Boston, New York,
Philadelphia, Baltimore, New Orleans, St.- Louis, San Francisco, Cincinnati, and
TC073—FI1921
22



838

'

REPORT ON T H E FINANCES.

Chicago, and all laws or parts of laws so far as they authorize the establishment or
maintenance of offices of such Assistant Treasurers or of Subtreasuries of the United
States are hereby repealed from and after July 1, 1921; and the Secretary of the Treasury is authorized and directed to discontinue from, and after such date, or at such
earlier date or dates as he may deem advisable, such Subtreasuries and the exercise of
all duties and functions by such Assistant Treasurers or their offices. The-office of
each Assistant Treasurer specified above and the services of any officers or other
employees assigned to duty at his office shall terminate upon the discontinuance of
the functions of that office by the Secretary of the Treasllr3^

2.^ By virtue of the authority vested in the Secretary of the
Treasury under the provisions of the act above quoted, I hereby
discontinue the Subtreasury of the United States at St. Louis, Missouri, and the exercise of all duties and functions by the Assistant
^Treasurer of the United States at said Subtreasury, from and after
the close of business on Saturday, January 8, 1921. Upon such
discontinuance the ofl&ce of the Assistant Treasurer of the United
States at St. Louis and the services of any arid all,officers or other
employees assigned to duty at his office shall terminate in accordance
with the statute.
3. The Secretary of the Treasury has made provision, pursuant to
the authority conferred by said act approved May 29, 1920, to transfer the duties and functions performed or authorized to be performed
by the Assistant Treasurer at St. Louis, or his office, to the Treasurer
of the United States and the Mints and Assay Offices of the United
States," and will utilize the Federal Reserve Bank of St. Louis, Missouri, acting as depositary or fiscal agent of the United States, for the
. purpose of performing certain of such duties and fiunctions. The
Federal Reserve Bank of St. Louis will be prepared, on and after
January 8, 1921, to handle exchanges of United States paper currency
and United States coin, pursuant to rules and regulations prescribed
by the Secretary of the Treasury. Upon the discontinuance of the .
Subtreasury at St. Louis outstanding gold certificates payable to
order, issued by the Assistant Treasurer of the United States at
St. Louis, will be received for payment by the Federal Reserve
Baiik of St. Louis or the Treasurer of the United States at Washington.
D. F. HOUSTON,

Secretary ofthe Treasury.
EXHIBIT

65.

[Department Circular No. 224. Division of Public Moneys.]

DISCONTINUANCE

OF THE UNITED STATES
BALTIMORE, MD.

SUBTREASURY

AT

TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,

Washington, January 12, 1921.
To all concerned:
1. The Legislative, Executive, and Judicial Appropriation Act, aproved May 29, 1920, provides in part as follows with respect to the
iscontinuance of the Subtreasuries of the United States:

§

INDEPENDENT TREASURY.

Section 3595 of the Revised Statutes of the United States, as amended, providing
for the appointment of an Assistant Treasurer of the United States at Boston, New
York, Philadelphia, Baltimore, New Orleans, St. Louis, San Francisco, Cincinnati,




SECRETARY OF THE TREASURY.

339

and Chicago, and all laws or parts of laws so far as they authorize the establishment or
maintenance of offices of such Assistant Treasurers or of Subtreasuries of the United
States are hereby repealed from and after July 1,1921; and the Secretary of the Treas- ury is authorized and directed to discontinue from and after such date, or at such
earlier date or dates as he may deem advisable, such Subtreasuries and the exercise of
all duties and functions by such Assistant Ti'easurers or their offices. The office oi. each
Assistant Treasurer specified above and the services of any officers or other employees
assigned to duty at his office shall terminate upon the discontinuance of the functions
of that ofiice by the Secretary of the Treasury.

2. By virtue of the authority vested in the Secretary of the Treasury under the provisions of the act above quoted, I hereby discontinue the Subtreasury of the United States at Baltimore, Md., and
the exercise of all