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ANNUAL REPORT OF THE
SECRETARY OF THE TREASURY
ON

THE STATE OF THE




FINANCES
FOR THE FISCAL YEAR
ENDED JUNE 30

1925
IVith Appendices

WASHINGTON
GOVERNMENT PRINTING OFFICE
1926

pppviwp

CoJ^
TREASURY DEPARTMENT

Document No. 2955
Secretary
21




45^0
CONTENTS
Page

^
^
y,

Introduction
Taxation
_->
_
Receipts and expenditures
Trend of tax receipts
_
Trend of expenditures
The public debt
Debt retirements
Debt retirement and taxes
Composition of the pubhc debt
Managing the public debt
Treasury bonds of 1944-1954
.
Certificates of indebtedness and Treasury notes
Redemption of the 4's of 1925
.__
Termination of conversion privilege, 4 per cent Liberty bonds
Treasury financing and the credit situation
*
The relation of Treasury rates to the market
Influence of debt payments on the money market
Obligations of foreign governments
!World War Foreign Debt Commission
Armenia
___;
Austria
.;
Belgium
-_
Czechoslovakia
Esthonia
:
-Prance
Greece.
Italy
.
Latvia
Liberia
Lithuania.
.......
.
Nicaragua
>
Poland
.
Rumania
Russia
:
_.._^
_-_
Yugoslavia.
;
-__
Gold
.
t
The gold standard and international trade
Gold movements.
j
Gold production
Stock of monetary gold in the United States
United States paper currency
^
Bureau of Engraving and Printing
Controlling accounts over transactions in security paper
Insular possessions...^
Bureau of Internal Revenue
Prohibition and narcotic enforcement
Customs
The Coast Guard
Federal Farm. Loan System
1
Federal land banks
Joint-stock land banks.
Federal intermediate credit banks
War Finance Corporation
^
_
Farmers' seed-grain loans
Alleged duplications of the public debt^
;
Deposits of Government funds..1
Securities owned by the United States Government
.— ^
Railroads . . .
Section 204
Section 209
.
...^.Section 210




III

itp^S

1
4
6
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IV

CONGCENTS

Checking accounts of Government corporations and agencies
The mints
Silver
.
Public Health Service
.
...
Public buildings
Hospitals
:
Adjusted service certificate fund
.
District of Columbia teachers' retirement fund..
.
United States Government life insurance fund
.^.
Civil service retirement and disability fund
Foreign service retirement and disability fund-._
Library of Congress Trust Fund Board
—
Surety bonds
^
.
Treasury organization
:
.
Budget and improvement committee
Bureau of Supply
Purchases and issues of stationery
.
General Supply Committee
.
Personnel
Personnel classification
^
i^
._
Retirement of civil service employees
Practice before the Treasury Department
^.
Panama Canal
_._.
Finances
:
Condition of the Treasury June 30, 1925
Receipts and expenditures on cash basis.
Receipts and expenditures on warrant basis
Estimates for 1926 and 1927 compared with actual receipts
Estimates for 1927 and appropriations for 1926

.

,
^
...

^.

...
,

...
._.
.
for 1925.

Page
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150
164
167

Exhibits accompanying the report on the finances
Exhibit 1. Statement of the public debt of the United States, June 30,1925.
Exhibit 2. Preliminary statement of the public debt, October, 31, 1925
Exhibit 3. Summary statement of transactions in interest-bearing and
noninterest-bearing United States securities for the fiscal year ended
June 30, 1925
.
Exhibit 4. Interest-bearing United States bonds, notes, and certificates of
indebtedness issued during the fiscal year ended June 30, 1925, classified
by issues and accounts
_''
Exhibit 5. Interest-bearing United States bonds, notes, and certificates of
indebtedness retired during the fiscal year ended June 30, 1925, classified by issues and accounts
:
Exhibit 6. United States bonds, notes, and certificates of indebtedness
outstanding June 30, 1925, which matured during the fiscal year 1925,
classified by issues and denominations
_.'
Exhibit 7. Interest-bearing United States bonds, notes, and certificates of
indebtedness outstanding June 30, 1925, classified by issues and denominations
Exhibit 8. Stock accountability of the Division of Loans and Currency
for United States and other securities for the fiscal year 1925
Exhibit 9. Stock accountability of Federal reserve banks and other Treasury agencies for United States securities for the fiscal year 1925
Exhibit 10. Retired and unissued United States pre-war securities on hand
June 30, 1924, not previously reported (belonging to previous fiscal
years and dehvered to the Register of the Treasury during the fiscal
year 1925)
Exhibit 11. Summary of transactions in interest-bearing United States
securities for the fiscal year 1925
^
Exhibit 12. Transactions in interest-bearing pre-war bonds during the
fiscal year 1925
Exhibit 13. Transactions in interest-bearing Liberty bonds and Treasury
bonds during the fiscal year 1925
.
Exhibit 14. Transactions in interest-bearing Treasury notes during the
fiscal year 1 9 2 5 . . - 1 . .




170
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189
194

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204

CONTENTS

V
Page

Exhibit 15. Transactions in interest-bearing certificates of indebtedness
during the fiscal year 1925
.
Exhibit 16. Transactions in Treasury (war) savings securities during the
fiscal year 1925
Exhibit 17. Liberty bond and Victory note conversions from November 15,
1917, to June 30, 1925
.
Exhibit 18. Certificates; of indebtedness issued through each Federal
reserve bank and Treasury Department during the fiscal year 1925
Exhibit 19. Registered interest-bearing bonds outstanding and number of
registered accounts June 30, 1925, classified by issues, amount of interest payable, and number of checks drawn during the fiscal year 1925. _
Exhibit 20. Insular and District of Columbia loans—changes during the
fiscal year ended June 30, 1925
Exhibit 21. Retired and unissued securities, not affecting the public debt
of the United States, delivered to the Register of the Treasury during
the fiscal year ended June 30, 1925
:.____
Exhibit 22. Pubhc debt transactions from July 1, 1924, to June 30, 1925,
inclusive
.
.
Exhibit 23. Public debt retirements chargeable against ordinary receipts. _
Exhibit 24. United States bonds, notes, and certificates of indebtedness
bearing maturity dates subsequent to April 1, 1917, outstanding and on
hand June 30, 1925, showing an accounting for securities delivered by
the Bureau of Engraving and Printing and securities issued and retired
from date of inception
Exhibit 25. Interest-bearing United States securities outstanding June
30, 1925, and transactions in such securities from date of inception,
showing reconciliation of account of the Treasurer of the United States
with security account
.
._
Exhibit 26. Interest-bearing United States pre-war bonds outstanding,
and transactions in such securities from date of inception to June 30,
1925
.
Exhibit 27. Interest-bearing United States Liberty bonds and Treasury
bonds outstanding, and transactions in such securities from date of
inception to June 30, 1925
.
Exhibit'28. Interest-bearing United States Treasury notes and certificates of indebtedness outstanding, and transactions in such securities
from date of inception to June 30, 1925
-.,
Exhibit 29. Interest-bearing United States Treasury (war) savings
securities outstanding, and transactions in such securities from date of
inception to June 30, 1925
..
Exhibit 30. Brief description of Liberty bonds and Treasury bonds.
Exhibit 31. Brief description of Treasury notes, certificates of indebtedness, and war-savings certificates
Exhibit 32. Third supplement to Department Circular No. 225. Receipt
of Liberty bonds, Treasury bonds, and Treasury notes for estate or
inheritance taxe s
Exhibit 33. Department Circular No. 349, offering for subscription 4 per
cent Treasury bonds of 1944-1954
Exhibit 34. Department Circular No. 354, offering for subscription an
additional issue of 4 per cent Treasury bonds of 1944-1954
Exhibit 35, Letter of Secretary of the Treasury, dated December 3, 1924,
to banking institutions, accompanying the offering of 4 per cent Treasury
bonds of 1944-1954, dated December 15, 1924
Exhibit 36. Letter of Secretary of the Treasury to holders of Third Liberty
loan bonds, accompjanying the offering of 4 per cent Treasury bonds of
1944r-1954, dated December 15, 1924.
Exhibit 37. Department Circular No. 352. Treasury bonds: Bearer bonds
in the denomination of $100,000
^_..
Exhibit 38. Department Circular No. 351. Termination of conversion
privilege—4 per cent Liberty bonds
Exhibit 39. Department Circular No. 353, offering for subscription
Treasury certificates of indebtedness, series TD-1925, dated and bearing
interest from March 16, 1925
.
.
Exhibit 40. Departnient Circular No. 359, offering for subscription Treasury certificates of indebtedness, series TJ-1926, dated and bearing
interest from June 15, 1925
.
.
...




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209
210
212
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221

224

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235
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243
245
247
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249
250
251
252

VI

CONTENTS
rag©

Exhibit 41. Department Circular No. 360, offering for subscription
Treasury certificates of indebtedness, series TJ2-1926, dated and bearing
interest from September 15, 1925
Exhibit 42. Amendment to Department Circular No. 308. Redemption
of war-savings certificates, series of 1918
Exhibit 43. Amendment to Department Circular No. 330. Redemption
of war-savings certificates, series of 1919
.
Exhibit 44. Payments to carriers from November 1, 1924, to October 31,
1925, inclusive, provided for in section 204 of the transportation act
of 1920, as amended, for reimbursement of deficits on account of Federal
control
Exhibit 45. Payments to carriers from November 1, 1924, to October 31,
1925, inclusive, under the guaranty provided for in section 209 of the
transportation act of 1920, as amended, and payments by carriers to the
United States under the same section
^
_
Exhibit 46. Loans to carriers under section 210 of the transportation act
of 1920, as amended, and repayments on such loans from November 1,
1924, to October 31, 1925, inclusive, with loans outstanding October 31,
1924, and October 31, 1925
.....
Exhibit 47. Federal control of railroads—net cash expenditures on account of railroads and railroad obligations.as of June 3,0, 1925.
...
Exhibit 48. Securities owned bv the United States Government, June 30,
1925..
--.
----^
Exhibit 49. Obligations of foreign governments held by the United States
Treasury together with interest accrued and remaining unpaid thereon
as of the last interest period prior to or ending with November 15,1925. .
Exhibit 50. Payments made by foreign governments on account of
principal of obligations held by the Treasury
:
.
.
Exhibit 51. Payments made by foreign governments on account of interest on obligations held by the Treasury
.
',.
Exhibit 52. An act to amend the act entitled *'an act to create a commission authorized under certain conditions to refund or .convert obhgations of foreign governments held by the United States of America, and
for other purposes," approved February 9, 1922, as amended February
28, 1923...
....^
Exhibit 53. Agreement for the funding of the debt.of Lithuania to the
United States
...
_.
Exhibit 54. Letter from the Secretary of the Treasury, dated September
22, 1924, to the President of the United States, submitting the report
of the World War Foreign Debt Commission in connection with the
debt settlement with Lithuania
^^__-___.__^
^._
Exhibit 55. Message from the President.of the United States to the
Congress, dated December 4, 1924, submitting the report of the World
War Foreign Debt Commission, dated December 4, 1924
Exhibit 56. An act to authorize the settlement of the indebtedness of the
RepubHc of Lithuania to the United States of America
•.
Exhibit 57. Agreement for the funding of the debt of Poland to the United
States
.
Exhibit 58. Letter from the Secretary of the Treasury, dated November
14, 1924, to the President of the United States, submitting the report
of the World War Foreign Debt Commission in connection with the
debt settlement with Poland
^ ^
Exhibit 59. Message from the President of the United States to the Congress, dated December 4, 1924, submitting the report of the World War
Foreign Debt Commission, dated November 14, 1924
Exhibit 60. An act to authorize the settlement of the indebtedness of the
Republic of Poland to the United States of America.
^ :
Exhibit 61. Statement given to the press of the remarks of the Belgian
ambassador and Secretary Mellon at the opening of the negotiations
for the funding of the indebtedness of Belgium to the United States
Exhibit 62. Statement given to the press by the World War Foreign Debt
Commission at the conclusion of the negotiations for the funding of the
indebtedness of Belgium to the United States
Exhibit 63. Agreement for the funding of the debt of Belgium to the
United States...^
.




254
.

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256

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265
266
267

. 268
268

273
275
275
276

. 282
. 283
283
284
286
288

CONTENTS

VII
Page

Exhibit 64. Statement given to the press by the World War Foreign Debt
Commission in connection with the settlement of the indebtedness of
Latvia to the United States
...
Exhibit 65. Agreement for the funding of the debt of Latvia to the United
States
.
Exhibit 66. St^atement given to the press by the World War Foreign Debt
Commission in connection with the settlement of the indebtedness of
Czechoslovakia to the United States
Exhibit 67. Agreement for the funding of the debt of Czechoslovakia to
the United States
^
Exhibit 68. Statement given to the press by the World War Foreign Debt
Commission in connection with the settlement of the indebtedness of
Esthonia to the United States
.....^
.
Exhibit 69. Agreement for the funding of the debt of Esthonia to the
United States..
._.
...
Exhibit 70. Statement given to the press of the remarks of the French
Minister of Finance and Secretary Mellon at the opening of negotiations
for the settlement of the indebtedness of France to the United States. _
Exhibit 71. Statement given to the press of the remarks of Secretary
Mellon and the Italian Minister of Finance at the opening of negotiations for the settlement of the indebtedness of Italy to the United
States
_.!__.
Exhibit 72. Statement given to the press by the World War Foreign Debt
Commission in connection with the settlement of the indebtedness of
Italy to the United States
'..
.._
..
Exhibit 73. Statement given to the press of the remarks of Count Volpi..
and Secretary Mellon at the signing of the agreement for the settlement of the indiebtedness of Italy to the United States
.
Exhibit 74. Agreement for the funding of the debt of Italy to the United
States
1
._-.-...__.
Exhibit 75. Statement given to the press by the World War Foreign Debt
Commission at the opening of negotiations for the settlement of the indebtedness of Rumania to the United States
.
Exhibit 76. Interest collected by fiscal years, from June 1, 1913. to June
30, 1925, on deposits of Government funds with national-bank depositaries, insular depositaries, and foreign depositaries
,.:i
.
Exhibit 77. Interest collected to June 30,1925, by Federal reserve districts,
on deposits in special depositaries on account of sales of Liberty bonds,
Victory notes. Treasury notes, and certificates of indebtedness, and
income and profits tax payments, under acts of April 24, 1917, September 24, 1917, April 4, 1918, July 9, 1918, September 24, 1918, and
March 3, 1 9 1 9 - . .
._-._Exhibit 78. Department Circular No. 356. Chief clerk. Treasury Department, designated to handle classification and efficiency matters..
Exhibit 79. Department Circular No. 244. Supervision of bureaus and'
offices of the Trgsury Department and divisions of the office of the
Secretary of the Treasury by the Undersecretary of the Treasury and
the Assistant Secretaries of the Treasury
.._
Exhibit 80. Number of employees in the departmental service of the
Treasury in Washington, by months, from June 30, 1924, to September
30, 1925
._....
...
-..-.
Exhibit 81. Department Circular No. 154, revised. Acceptance-of United
States bonds and notes as security in lieu of surety or sureties on penal
bonds
Exhibit 82. Treasury Decision 3734. Enrollmentof attorneys and agents.
Exhibit 83. Circular letter No. 144. Printing and forms committee
appointed
1
—
Exhibit 84. Department Circular No. 358. Disposition of useless papers.
Exhibit 85. Letter from the Secretary of the Treasury, dated March 3,
1925, to the President of the United States, with reference to a report
submitted to Congress by the special committee of Congress appointed to investigate matters relating to Government bonds
Exhibit 86. Statement by the Secretary of the Treasury, supplementing his
letter to the President, dated March 3, 1925, in connection with the alleged duplicate bonds




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296
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302
308
309
314

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323
323

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324

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327
328
339
339
340

342
345

VIH

CONTENTS
Page

Exhibit 87. Treasury statement before the Ways and Means Committee
of the House regarding the condition of the public finances and proposed
tax reform
Abstracts of reports of bureaus and divisions
Treasurer of the United States..
j
Comptroller of the Currency
National banks organized, consolidated, insolvent, in voluntary
liquidation, and in existence
.
Condition of national banks
.
, Banks other than national
^
All reporting banks
Director of the Mint
.
Institutions of the Mint Service...
.
..
Coinage
.
.
Gold operations
,
.
^
Silver operations
Refineries. ....
Commemorative coins and medals
Stock of coin and monetary bullion in the United States
.
Production of gold and silver
Industrial consumption of gold and silver._:.
^
...
Import and export of domestic gold coin
...
Appropriations, expenses, and income. . .
.
Deposits of gold and silver, income, expenses, and employees, by institutions, fiscal year 1925
^^.
Bureau of Internal Revenue
.
Receipts from internal-revenue taxes
Cost of administration._.
Income and profits taxes
.
Capital-stock tax
Estate tax
....
Sales tax
__..__..
Tobacco taxes
^
^
Miscellaneous stamp and special taxes
Accounts and Collections Unit
.
Solicitor's Office
'
Prohibition Unit
.
Bureau and field personnel
Division of Bookkeeping and Warrants
Summary of receipts and expenditures
C.
The general fund
^
.
Warrants issued during the fiscal year 1925, adjusted to basis of daily
Treasury statements, revised
_.
District of Columbia account of revenues and expenditures
Alien Property Custodian account
Purchase of farm loan bonds
.
Civil service retirement and disability fund
State bonds and stocks owned by the United States
Chinese indemnity
Adjusted service certificate fund
Bureau of Engraving and Printing
Customs Service
Use of forfeited vessels and vehicles
'.
Conferences . _ .
Drawback
Storage-manipulation warehouses
Registration of trade-marks
Currency conversions
.
,
Amendment of customs regulations
Awards of compensation to informers
.
.
Customs transactions
.
Customs division
Special Agency Service, Customs
.




346
359
362
362
365
367
368
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370
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371
371
372
372
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395
395
396
396
397
397

CONTENTS

IX
Page

Office of the Supervising Architect
400
Building operations up to the close of the fiscal year
.
400
Projects completed- 400
Projects in course of construction
.
...
401
Expenditures, contract liabilities charged against appropriations, and
unencumbered balances
402
Public Health Service
.
.
......
.
403
Division of scientific research
..
403
Domestic quarantine division^
1
405
Division of foreign and insular quarantine and immigration
,406
Division of sanitary reports and statistics
.
407
,Division of marine hospitals and relief
__._
408
Division of venereal diseases.
_._
409
Division of personnel and accounts
.
_'
410
Financial statement
. _.
411
Coast Guard
..J...
._
412
Summary of principal operations..
412
Ice patrol to promote safety at sea
^413
Winter cruising
^^_._
'.
. 414
Cruises in northern waters
.^ 414
Anchorage and movements of vessels
415
Removal of derelicts...
.
_._^___
415
Regattas
.
.
.-415
Communications
'.
..._L
:
415
Ordnance
.^__
417
. Welfare
._-\
418
Recruiting
_._
419
Coast Guard Academy
.
1.
420
Coast Guard repair depot
-....,
421
Repairs and improvements to vessels and stations. -._._.__._
421
Enforcement of customs and other laws
a
..
422
Award of life-saving medals
^
:
423
Personnel
.
.
.._
.-423
Floating equipment
_.
424
Shore bases
:
'
•.425
Stations
----425
Remarks
425
Division of Loans and Currency.._-.
425
Summary of activities
^
...
425
Maintenance of loan accounts
,..
..
426
Interest payments.
...
: l
^__._..
426
Claims
..-_.
..
426
Redeemed currency and mutilated paper
^
426
Personnel
-_
427
Circulation
..
427
Division of Paper Custody
.:
429
Register of the Treasury
.
429
Division of Deposits
_--_
433
Number of depositaries and amount of deposits
433
General national-bank depositaries of public moneys._.
.
433
Limited national-bank depositaries of public moneys
— .
434
Insular depositaries of public moneys
434
Special depositaries of public moneys
434
Foreign depositaries of public moneys
..
434
Secret Service Division
435
Division of Printing
436
Printing and binding
436
Postage
.-437
Department advertising
• 437
Disbursing clerk
.
438
Bureau of Supply
438
Allotments to and expenditures by the bureau
.
439
Purchases and issues of stationery supplies
.
441
General Supply Committee
._^|^




X

CONTENTS
Tables accompanying the report on the

finances

Table A.—Pubhc debt of the United States outstanding June 30, 1925...
Table B.—Principal of the public debt at the end of each fiscal year from
1853 to 1925, exclusive of gold certificates, silver certificates, currency
certificates, and Treasury notes of 1890
Table C.—United States interest-bearing debt outstanding at the end of
each month from February 28, 1917, to August 31, 1925
Table D.—Unmatured Liberty bonds. Treasury bonds, and Victory notes
outstanding from June 30, 1919, to August 31, 1925, classified by denomination and form
Table E.—Public debt retirements for the fiscal years 1918 to 1925, on
basis of daily Treasury statements, revised
.
Table F.—Cash expenditures of the Government for the fiscal years 1917 to
1925, inclusive, as published in daily Treasury statements, classified
according to departments and establishments
Table G.—Ordinary receipts, and expenditures chargeable against ordinary
receipts, from April 6, 1917, to October, 31 1925, on the basis of daily
Treasury statements, unrevised
Table H.—Condition of the United States Treasury at the close of the
fiscal years 1923, 1924, and 1925
Table i.—Appropriations made by Congress for the fiscal years 1914 to
1926, including estimated permanent and indefinite appropriahions and
deficiencies for prior years.-!
.
Table J.—Appropriations, expenditures, amounts carried to surplus fund,
and unexpended balances for the fiscal years 1885 to 1925 ^
.Table K.—Receipts and expenditures of the United States Government
by fiscal years from 1791 to 1925
.
Table L.—Postal receipts and expenditures for the fiscal years 1791 to
1925
.
......
Table M.—Sources of internal revenue, 1863 to 1925
.
Table N.—Internal-revenue«receipts, by States and Territories, for the
fiscal years 1924 and 1925
-.._-.,
Table 0.—Merchandise imported and customs duties collected from 1890
to 1924, and recapitulation from 1867 to 1924
...
Table P.—Customs statistics, by districts, for the fiscal year 1925
Table Q.—Stock of money in the United States, classified by kind, at the
end of each fiscal year from 1860 to 1889
Table R.—Stock of money in the United States, classified by kind, at the
end of each fiscal year from 1890 to 1925
'.
.
-.
Table S.—Stock of money, money in circulation, and amount of circulation
per capita in the United States from 1860 to 1925.
•.-.

=•
448
456
458
461
463
468
472
476
478
480
482
494
496
502
504
510
512
513
514

APPENDIX TO REPORT ON THE FINANCES
REPORT OF THE TREASURER:

Receipts and expenditures for 1924 and 1925
^--.
..
Pay warrant transactions
'
;
Panama Canal
Receipts and expenditures on account of the Post Office Department-_
Transactions in the public debt
Public debt retirements from payments received from foreign governments on their obligations held by the United States
.
Cumulative sinking fund
.'
Interest-bearing bonds, etc., retired on miscellaneous accounts
.-_
Redemption of the 4 per cen. loan of 1925
.
^
Payment of interest on registered bonds and notes.
Payment of coupons from United. States bonds and interest notes
The reserve fund
:
Statement of the Treasury of the United States
General fund
Gold in the Treasury
.___.-.__
.
Securities held in trust
.
^
Special trust funds
Postal-savings bonds and investments therein
Withdrawal of bonds to secure circulation
.
Lawful money deposited in the Treasury during the fiscal year 1925
for the redemption of national bank notes



519
521
522
522
523
523
524
524.
524
524
525
525
525
526
527
527
529
532
532
532

CONTENTS
REPORT OF THE TREASURER—Continued.

XI
•
.

Depositaries of the United States
:.
Public moneys in depositary banks
L
United States paper currency issued and redeemed
Paper currency prepared for issue, and amount issued
.....
Redemptions of paper currency
'
Pieces of United States paper currency outstanding... .
Interest on public moneys held in depositary banks
Gold fund, Federal Reserve Board
Supply of United States paper currency held in reserve
. Ratio of small denominations to all paper currency outstanding
Metallic stock of money in the United States
'
' Issue, exchange, and redemption of money
Issue of United States paper currency
.
Issue of gold coin
'
Issue of standard silver dollars, siibsidiary silver coin, and minor
. coin
.
...
Redemption of paper currency
Redemption, exchange, and purchase of United States coin
General information
^^_.
Redemption of Federal reserve and nationaLcurrency
Shipments of currency from Washington, 1924 and 1925
Deposits of gold bullion at mints and assay offices, 1923-1925
•
District of Columbia sinking fund
Recoinage, 1924 and 1925
General account of the Treasurer of the United States
.

Page

532
533
533
534
535
536
538
538
539
539
639
540
540
540
541
541
541
543
544
545
546
546
546
547

Tables accompanying the report of the Treasurer
No. 1.—General distribution of the assets and liabilities of the Treasury,
June 30, 1925
No. 2.—Available assets and liabilities of the Treasury at the close of
June, 1924 and 1925
__-No., 3—Distribution of the General Treasury balance, June 30, 1925.-__
No. 4.—Assets of the Treasury other than gold, silver, notes, and certificates at the end of each month, from July, 1922
.
No. 5.—Assets of the Treasury at the end of each month, from July, 1922.
No. 6.—Liabilities of the Treasury at the end of each month, from July,
1922_.__No. 7.—United States notes of each denomination issued, redeemed, and
outstanding at the close of the fiscal years 1922, 1923, 1924,
and 1925
.
'
---._-_
No. 8.—Treasury notes of 1890 of each denomination redeemed and outstanding at the close of the fiscal years 1922, 1923, 1924, and
. 1925..__
--._-----.
No. 9.—Gold certificates of each denomination issued, redeemed, and
outstanding at the close of the fiscal years, 1922, 1923, 1924,
and 1925
.__----_.
No. 10.—Silver certificates of each denomination issued, redeemed, and
outstanding at the close of the fiscal years 1922, 1923, 1924,
and 1925
.
.
.
_-.
No. 11.—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 1922
No. 12.—Old demand notes of each denomination issued, redeemed, and
outstanding June 30, 1925
•-.
No. 13.—Fractional currency of each denomination issued, redeemed, and
outstanding June 30, 1925
No. 14.—Compound-interest notes of each denomination issued, redeemed,
and outstanding June 30, 1925
No. 15.—One and two year notes of each denomination issued, redeemed,
and outstanding June 30, 1925
:
No. 16.—Seven-thirty notes redeemed and outstanding June 30, 1925
No. 17.—Refunding certificates, act of February 26, 1879, redeemed and
outstanding June 30, 1925
No. 18.—Federal reserve and national banks designated depositaries of
public moneys, with the balance held June 30, 1925




549
550
551
551
552
552
553
554
555
55&
557
558
558
558
558
559
559
559

XII

CONTENTS
Fagt

No. 19.—Number of banks with semiannual duty levied, by fiscal years,
and number of depositaries with bonds as security at close of
each fiscal year frOm 1915
No. 20.—Checks issued by the Treasurer for interest on registered bonds
during the fiscal year 1925
No. 21.—Interest on 3.65 per cent bonds of the District of Columbia paid
during the fiscal year 1925
.
No. 22.—Coupons from United States bonds., certificates, and notes paid
during the fiscal year 1925, classified by loans
No. 23.—Checks drawn by the Secretary and paid by the Treasurer for
. interest on registered bonds and notes of the United States
during the fiscal year 1925
No. 24.—Coupon interest on United States bonds paid by check during
fiscal year 1925
.
No. 25.—Money deposited in the Treasury each month of the fiscal year
1925 for the redemption of national-bank notes and Federal
reserve bank notes
^
_.
No. 26.—Amount of currency counted into the cash of the National Bank
Redemption Agency and redeemed notes delivered by fiscal
years from 1916 to 1924, and by months during the fiscal year
1925
_.-1
No. 27.—Currency received for redemption by the National Bank Redemption Agency from the principal cities and other places,
by fiscal years from 1916, in thousands of dollars
No. 28.—Mode of payment for currency redeemed at the National Bank
Redemption Agency, by fiscal years, from 1916
No. 29.—Deposits, redemptions, assessments for expenses, and transfers
and repayments on account of the 5 per cent redemption fund
of national and Federal reserve banks, by fiscal years, from
1916.
No. 30.—Deposits and redemptions on account of the retirement of
circulation, by fiscal years, from 1916.
No. 31.—Expenses incurred in the redemption of national and Federal
reserve currency, by fiscal years, from 1916
No. 32.—General cash account of the National Bank Redemption Agency
for the fiscal year 1925, and from July 1, 1874
No. 33.—Average amount of national-bank notes outstanding and the
redemption, by fiscal years, from 1875 (the first year of the
agency)
No. 34.—Federal reserve notes, canceled and uncanceled, forwarded by
Federal reserve banks and branches, counted and delivered
to the Comptroller of the Currency for credit of Federal reserve
agents
^..
No. 35.—Number of notes of each kind of currency and denornination redeemed and delivered by the National Bank Redemption
Agency during the fiscal year 1925
No. 36.—Amount of money outside of the Treasury, the amount held by
Federal reserve banks and agents, and the amount in circulation, etc., on the first day of each month from July, 1923.
No. 37.—Total amount expended on account of the Panama Canal, the
receipts from tolls, etc., and the proceeds of sales of bonds to
the close of the fiscal year 1925
-.

561
562
562
563
564
564
564

565
566
566

566
567
567
568
569

569
570
572
572

REPORT, OF THE DIRECTOR OF THE M I N T :

Operations of the mints and assay offices
Institutions of the mint service
.
Coinage
Gold operations
,.^
Silver operations
Refineries. _.
Commemorative coins and medals
Stock of coin and monetary bullion in the United States
Production of gold and silver.i.
Industrial consumption of gold and silver
.^
Import and export of domestic gold coin
Appropriations, expenses, and income
.




...

...

573
573
573
574
574
574
574
575
576
576
576
, 576

CONTENTS
REPORT OF THE DIRECTOR OF THE MINT—Continued.

Deposits of gold and silver, income, expenses, and employees, by
. institutions, fiscal year 1925
_
.
s.
Coinage, details of
Issue of fine gold bars for gold coin and gold bullion
Receipts and disbursements of gold bullion and balances on hand
Purchase of minor coinage metal for use in domestic coinage
Minor coin distribution costs
^
Minor coins outstanding
Operations of the assay department.
• Operations-of the melting and refining and of the coining departments,
fiscal year 1925
Refining operations.-^
:
'.
Ingot melts
.
...
Fineness of melts for gold and silver ingots
.
Commercial and certificate bars manufactured
W'astage and loss on sale of sweeps
..
Engraving Department
Dies manufactured...
,
Medals sold
^.-..
.
Employees
Work of the minor assay offices
Laboratory, Bureau of the Mint
^
Assay Commission's annual test of coins
Tables, report of the Director of the Mint
.....
_.__.

XIII
!•»««

577
577
578
579
580
580
580
580
581
583
584
584
585
586
587
587
588
588
588
589
591
594

REPORT OF THE REGISTER:

Federal reserve banks as fiscal agents
Retired securities canceled on account of reduction of principal of
public debt
Canceled securities received for credit
Final audit
Records of issue
Numerical records
Functional apportionment
Industrial medical service
:
_
Medical relief-room service
>_
Library service
General condition
Summary of securities received, examined, and retired:
.
Statistical statements
.

639
639
640
640
641
641
641
642
643
643
643
643
645

REPORT OF THE COMPTROLLER OF THE CURRENCY:

General conditions
Legislation recommended
,
National bank failures
^.Bank failures other than national
^
...
Public debt. United States bonds, national bank, and other circulation.
United States circulation bond transactions
^
Redemption of national and Federal reserve bank circulation.
National bahks of i s s u e . . .
Profit on national bank circulation
Organization and liquidation of national banks
Domestic branches of national banks
Condition of national banks at date of each report called for during
year
Condition of national banks September 28, 1925
Resources
Liabilities
National bank liabilities on account of bills payable and rediscounts.
Loans and discounts of national banks June 30, 1925
Comparative statement of loans and discounts, including rediscounts
made by national banks during last three fiscal years
Comparative changes in demand and time deposits, loans and discounts. United States Government and other bonds and securities,
and the amount of lawful reserve of national banks since June 30,
1921
.....
.
United States Government securities held by national banks in
reserve cities and States
Investments of national banks



695
695
699
702
702
703
705
706
706
707
708
713
714
714
715
718
719
726

726
727
730

XIV

CONTENTS

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

rage

Savings depositors a n d deposits in national b a n k s
736
Per capita individual a n d savings deposits in all reporting banks
738
Earnings, expenses, a n d dividends of national b a n k s
.
740
National b a n k s classified according t o capital stock
752
National b a n k examiners
.
753
Convictions of national b a n k officers a n d others for violations of t h e
national banking laws during t h e year ended October 31, 1925
759
Federal reserve system
.
763
Federal reserve b a n k discount r a t e s
766
Discount r a t e s prevailing in Federal reserve b a n k a n d branch cities _ . 767
R a t e s for money in New York
.
768
New York clearing house
.
771
Clearing-house associations in t h e 12 Federal reserve bank cities,
and elsewhere.
.
•
771
Banks other t h a n national
.
771
State (commercial) b a n k s
771
Loan a n d t r u s t companies
^
773
Principal items of resources a n d liabilities of loan and t r u s t
companies in J u n e of each year, 1914 t o 1925
775
Stock savings b a n k s
. . 775
M u t u a l savings b a n k s
777
Depositors a n d deposits in m u t u a l a n d stock savings banks
779
Private b a n k s
782
All reporting b a n k s other t h a n national
784
Principal items of resources a n d liabilities of, on or about June
30, 1920 t o 1925
.
786
Resources a n d liabilities of all reporting b a n k s in each State, Alaska,
and insular possessions
^
787
S u m m a r y of t h e combined r e t u r n s from all reporting banks in theUnited States, Alaska, a n d insular possessions J u n e 30, 1925.
798
Individual deposits in all reporting b a n k s . . _
799
Resources a n d liabilities of all reporting banks, 1920-1925
800
Assets a n d liabilities of all banks, including Federal reserve b a n k s . . _
800
Cash in all reporting b a n k s . - ^
_.
.
801
Money in t h e U n i t e d States
802
Circulation s t a t e m e n t , July 1, 1925
,
803
Banking power of t h e United States
'
804
Banks in t h e District of Columbia
805
Earnings, expenses, a n d dividends of b a n k s other t h a n national in t h e
District of Columbia
806
Building a n d loan associations in t h e District of Columbia
.
807
Building a n d loan associations in t h e United States
808
Monetary stocks in t h e principal countries of t h e w o r l d . 809
Federal land b a n k s
_-..
810
Joint-stock land b a n k s
.
811
Federal i n t e r m e d i a t e credit b a n k s
812
National agricultural credit corporations.
-_.
813
United States postal savings system
817
School savings b a n k s
822
Savings b a n k s in principal countries of t h e world
823
Resources of leading foreign b a n k s of issue
826
Expenses of t h e Currency Bureau
.
^
827
R E P O R T OF T H E C O M M I S S I O N E R OF I N T E R N A L R E V E N U E :

Collections
Cost of administration
I n a d e q u a t e housing of t h e bureau
Income T a x Unit
Work accomplished
Statistical division
Records division
:
Service division
.
Personnel
Decentralization
Changes in organization a n d procedure




^

,..
i.-.

829
830
831
832
832
833
833
834
834
834
835

CONTENTS
R E P O R T OF THE COMMISSIONER OF INTERNAL R E V E N U E — C o n t i n u e d .

Miscellaneous T a x Unit
Personnel a n d p a y roll
Taxes collected
.
.
Capital stock t a x division
E s t a t e t a x division
:
:
. Reviev/ section (estate tax)
Sales t a x division
.
...
Tobacco a n d miscellaneous division
.
Tobacco
.
Miscellaneous
•
•
Accounts and Collections U n i t
Division of office accounts a n d procedure
.
Division of field allowances
Disbursement division
.
Field procedure division
'^
Prohibition Unit
.
Collections
.
Office of chief counsel
Narcotic division
.
P e r m i t division
,
I n d u s t r i a l alcohol a n d chemical division
Audit division
.
^
.
Solicitor of I n t e r n a l Revenue
Appeals division
.,
I n t e r p r e t a t i v e Division I
^
I n t e r p r e t a t i v e Division I I
Penal division
Civil division
Review division
_-_
S u m m a r y of work
Suits a n d prosecutions
_^
Bureau a n d field personnel
.,
Statistical t a b l e s . . . ^
_.
^
I m p o r t a n t decisions of Federal courts in internal-revenue c a s e s .




XV
i*age

837
838
838
838
840
841
841
843
844
845
848
848
850
851
852
853
854
855
858
860
861
863
865
865
867
868
869
871
873
874
876
876
877
884

SECRETARIES OF THE TREASURY AND PRESIDENTS UNDER
WHOM THEY SERVED
NOTE.—Robert Morris, the first financial officer of the 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 office in 1789,
Presidents

WashingtonAdams
Jeflersoh
Madison

Monroe
Adams, J. Q..
Jackson

Van Buren.
Harrison...
Tyler

Polk..
Taylor...
Fillmore..
Pierce
Buchanan.

Lincoln..

Secretaries of Treasury

Alexander Hamilton, New York
Oliver Wolcott, Connecticut
Oliver Wolcott, Connecticut
Samuel Dexter, Massachusetts
Samuel Dexter, Massachusetts......
Albert Gallatin, Pennsylvania
Albert Gallatin, Pennsylvania*
George W. Campbell, Tennessee
Alexander J. Dallas, Pennsylvania..
Wm. H. Crawford, Georgia
Wm. H. Crawford, Georgia
Richard Rush, Pennsylvania 2
Samuel D. Ingham, Pennsylvania ' .
Louis McLane, Delaware
Wm. J. Duane, Pennsylvania
Roger B. Taney, Maryland *
Levi Woodbury, New Hampshire...
Levi Woodbury, New Hampshire ».
Thomas Ewing, Ohio
Thomas Ewing, OhioS
Walter Forward, Pennsylvania'
John C. Spencer, New York 8
Geo. M . Bibb, Kentucky
Geo. M . Bibb, Kentucky
Robt. J. Walker, Mississippi •
Wm. M . Meredith, Pennsylvania...
Wm. M. Meredith, Pennsylvania...
Thos. Corwin, Ohio
James Guthrie, Kentucky
Howell Cobb, Georgia 1
0
Philip F . Thomas, Maryland
John A. Dix, New York
Salmon P . Chase, Ohio"
Wm. P . Fessenden, M a i n e "
Hugh McCulloch, Indiana

Term of service
From—
Sept. 11,1789
Feb. 3,1795
Mar. 4,1797
Jan. 1,1801
Mar. 4,1801
May 14,1801
Mar. 4,1809
Feb. 9,1814
Oct. 6,1814
Oct. 22,1816
Mar. 4,1817
Mar. 7,1825
Mar. 6,1829
Aug. 8,1831
May 29,1833
Sept. 23,1833
July 1-, 1834
Mar. 4,1837
Mar. 6,1841
Apr. 5,1841
Sept. 13,1841
Mar. 8,1843
July 4,1844
Mar. 5,1845
Mar. 8,1845
Mar. 8,1849
July 10,1850
July 23,1850
Mar. 7,1853
Mar. 7,1857
Dec. 12,1860
Jan. 15,1861
Mar. 7,1861
July 5,1864
Mar. 9,1865

ToJan. 31,1795
Mar. 3,1797
Dec. 31,1800
Mar. 3,1801
May 13,1801
Mar. 3,1809
Apr. 17,1813
Oct. 5,1814
Oct. 21,1816
Mar. 3,1817
Mar. 6,1825
Mar. 5,1829
June 20,1831
May 28,1833
Sept. 22,1833
June 25,1834
Mar. 3,1837
Mar. 3,1841
Apr. 4,1841
Sept. 11,1841
Mar. 1,1843
May 2,1844
Mar. 4,1845
Mar. 7,1845
Mar. 5,1849
July 9,1860
July 22,1860
Mar. 6,1863
Mar. 6,1857
Dec. 8,1860
Jan. 14,1861
Mar. 6,1861
June 30,1864
Mar. 3,1865
Apr. 16,1865

1 While holding the office 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 Britian. On February 9,1814, his seat as Secretary of the Treasury was declared vacant,
because of his absence in Europe. William Jones, of Pennsylvania (Secretary of the Navy), acted ad
interim Secretary of the 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.
' Asbury Dickens (Chief Clerk), ad interim Secretary of the Treasury June 21 to August 7, 1831.
• McClintock Young (Chief Clerk), ad interim Secretary of the Treasury from June 25 to 30,1834.
«McClintock Young (Chief Clerk), ad interim Secretary of the Treasury from March 4 to 5,1841.
fl McClintock Young (Chief Clerk), ad interim September 13, 1841.
7 McClintock Young (Chief Clerk), ad interim March 1 to 7, 1843.
8 Spencer resigned as Secretary of the Treasury May 2,1844; McClintock Young (Chief Clerk), ad interim
from May 2 to July 3,1844.
» McClintock Young (Chief Clerk), ad interim March 6 to 7, 1849.
w Isaac Toucey, of Connecticut (Secretary of the Nayy), acted as Secretary of the Treasury ad interim
December 10 to 12, 1860.
" George Harrington, District of Columbia (Assistant Secretary), ad interim July 1 to 4, 1864.
" George Harrington (Assistant Secretary), ad interim March 4 to 8,1865.
XVI




SECRETARIES OF T H E TREASURY

XVII

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

Presidents

Hugh McCulloch, Indiana'3
Geo. S.Boutwell, Massachusetts
Wm. A. Richardson, Massachusetts
Benj. H. Bristow, Kentucky"
..
Lot M. Morrill, Maine
Lot M. Morrill, Maine
John Sherman, Ohiois
Wm. Windom, Minnesota
Wm. Windom, Minnesota
Chas. J. Folger, New York le.
Walter Q. Gresham, Indiana
Hugh McCulloch, Indiana
Hugh McCulloch, Indiana..
Daniel Manning, New York
Chas. S. Fairchild, New York..,....^
Chas. S. Fairchild, New York..
Win. Windom, Minnesota ^
^
Chas. Foster, Ohio
Chas. Foster, Ohio
John G. Carlisle, Kentucky
John G. Carlisle, Kentucky
Lj'-man J. Gage, Illinois.
Lyman J. Gage, Illinois
L. M. Shaw, Iowa
George B. Cortelyou, New Y o r k . . . .
Franklin MacVeagh, Illinois
W. G. McAdoo, New York
Carter Glass, Virginia
David F. Houston, Missouri
Andrew W. Mellon, Pennsylvania..
Andrew W. Mellon, Pennsylvania..

Johnson
Grant-

Hayes
Garfield
Arthur

Cleveland.-.:.

Harrison, Benj

Cleveland.---McKinley
Roosevelt

Taft
Wilson

Harding.
Coolidge

i

'I'erm of service
From—
Apr. 16,1865
M a r . 12,1869
M a r . 17,1873
J u n e 4,1874
J u l y 7,1876
M a r . 4,1877
M a r . 10,1877
M a r . 8,1881
S e p t . 20,1881
N o v . 14,1881
S e p t . 25,1884
Oct. 31,1884
M a r . 4,1885
M a r . 8,1885
Apr. 1,1887
M a r . 4,1889
M a r . 7,1889
F e b . 25,1891
M a r . 4,1893
M a r . 7,1893
M a r . 4,1897
M a r . 6,1897
S e p t . 15,1901
F e b . 1,1902
M a r . 4,1907
M a r . 8,1909
M a r . 6,1913
D e c . 16,1918
F e b . 2,1920
M a r . 4,1921
Aug. 3,1923

ToM a r . 3,1869
M a r . 16,1873
J u n e 3,1874
J u n e 20,1876
M a r . 3,1877
M a r . 9,1877
M a r . 3,1881
Sept. 19,1881
N o v . 13,1881
S e p t . 4,1884
Oct. 30,1884
M a r . 3,1885
M a r . 7,1885
M a r . 31,1887
M a r . 3,1889
M a r . 6,1889
J a n . 29,1891
M a r . 3,1893
M a r . 6,1893
M a r . 3,1897
M a r . 5,1897
Sept. 14,1901
J a n . 31,1902
M a r . 3,1907
M a r . 7,1909
M a r . 5,1913
D e c . 15,1918
F e b . 1,1920
M a r . 3,1921
A u g . 2,1923

1 John F. Hartley, of Maine (Assistant Secretary), ad interim from March 5 to 11, 1869.
3
" Charles F. Conant, of New Hampshire (Assistant Secretary), ad interim June 21 to 30 [July 6], 1876.
15 Henry E. French, of Massachusetts (Assistant Secretary), ad interim-March 4 to 7, 1881.
1 Charles E. Coon, of New York (Assistant Secretary), ad interim September 4 to 7, 1884; Henry F."
6
French, of Massachusetts (Assistant Secretary), ad interim September 8 to 14, 1884; Charles E. Coon ad
interim September 15 to 24, 1884.
" A. B. Nettleton, of Minnesota (Assistant Secretary), ad interim January 30 to February 24, 1891.

UNDERSECRETARIES OF THE TREASURY AND PRESIDENTS
AND SECRETARIES UNDER WHOM THEY SERVED
Presidents

Harding.Coolidge

Secretaries

Mellon
Mellon
Mellon

Undersecretaries i

S. P a r k e r Gilbert, jr.. N e w Jersey
S. P a r k e r Gilbert, jr.. N e w J e r s e y
G a r r a r d B . W i n s t o n _ ._

1 Office established act June 16,1921.

60501—Fi 192 5 t




II

T e r m of service
From—
J u l y 1,1921
A u g . 3,1923
N o v . 20,1923

To—
A u g . 2,1923
N o v . 17,1923

XVIII

ASSISTANT SECRETARIES OF T H E

TREASURY

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

Washington
Wilson. .

Secretaries

Hamilton
McAdoo.

Term of service

Assistants to the Secretaries

From—
._ Tench Coxe, Pennsylvania
._ Sept. 11,1789
George R. Cooksey, District of Colum- Mar. 6,1917
bia.

To—
May 8,1792
Mar. 4,1921

Glass.
Houston.
2 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
Piercfe.

Buchanan

Lincoln

Johnson
Lincoln

Johnson
Lincoln..

Johnson
Grant

Johnson
Grant

Hayes
Grant
Hayes.
Garfield

Secretaries

Meredith-.
Meredith..
Corwin.
Corwin _
Guthrie. ,
Guthrie
Cobb.
Cobb-.
Thomas.
Dix.
Chase

Term of service

Assistant Secretaries 3

Charles B. Penrose, Pennsylvania
Allen A. Hall, Pennsylvania..

From—
Mar. 12,1849
Oct. 10,1849

ToOct. 9,1849
Nov. 15,1850

William L. Hodge, Tennessee

Nov. 16,1850

Mar. 13,1853

Peter G. Washington, District of Columbia.

Mar. 4,1853

Philip Clayton, Georgia

George Harrington, District of Columbia.<

Fessenden.
McCulloch.
McCulloch.
Chase
„ . . Maunsell B. Field, New York.
Fessenden;
McCulloch.
McCulloch.
Fessenden
William E. Chandler, New Hampshire.
McCulloch.
McCulloch.
McCulloch..:... John F . Hartley, Maine
Bout well.
Richardson.
Bristow.
McCulloch
Edmund Cooper, Tennessee
William A. Richardson, Massachusetts
Bout well
Richardson
Frederick A. Sawyer, South CarolinaBristow.
Bristow
Charles F. Conant, New Hampshire..
Morrill.
Sherman.
Curtis F. Burnam, Kentucky
_,..
Bristow
Henry F. French, Massachusetts
Morrill
Sherman.
Windom.

Mar. 13,1857

Mar. 13,1861"

Mar. 12,1857

Jan. 16,1861
July 11,1865

Mar. 18,1864 June 15,1865

Jan.

5,1865

Nov. 30,1867

July 11,1865

May

4,1875

Dec. 2,1867
Mar. 20,1869
Mar. 8,1873

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

July

1,1874

Apr. 3,1877

Mar. 4,1875
Aug. 12,1876

June 30,1876
Mar. 9,1885

3 Office established act Mar. 3,1849; appointed by the Secretary. Act Mar, 3,1857, made the office Presidential.
* Act Mar. 14,1864, provides one additional Assistant Secretary,




ASSISTANT SECRETARIES OF T H E

TREASURY

XIX

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

Secretaries

Assistant Secretaries

Windom.
Folger.
Gresham.
McCulloch.
Manning.
Cleveland
Richard C. McCormick, Arizona
Sherman
Hayes
Sherman
John B. Hawley, Illinois-- Sherman
J. Kendrick Upton, New Hampshire-Garfield
Windom.
Arthur
Windom.
Folger.
Folger
John C. New, Indiana
Folger
Charles E. Coon, New York
Gresham.
McCulloch.
Cleveland
Manning.
Manning
Charles S. Fairchild, New York
William E. Smith, New York
.-.
Manning
Hugh S. Thompson, South Carolina. _
Manning
Fairchild.
Harrison
Windom.
Cleveland...:... Fairchild...
Isaac N, Maynard, New York
Harrison
Windom.
George H. Tichner, Illinois _
Windom
George T. Batchelder, New York «
Windom
A. B. Nettleton, Minnesota
Windom
Foster.
Oliver L. Spaulding, Michigan
Windom
Foster.
Cleveland
Carlisle.
Harrison
Foster
. . . . Lorenzo Crounse, Nebraska
John H. Gear, Iowa.. . .
Foster
Foster.
Genio M. Lambertson, Nebraska
Cleveland
Carlisle.
Charles S. Hamlin, Massachusetts
Carlisle
McKinley
Gage.
Cleveland
William E. Curtis, New York
Carlisle
McKinley
Gage.
Cleveland
Scott Wike, Illinois .
Carlisle
Gage.
McKinleyWilliam B. Howell, New Jersey
Gage
Oliver L. Spaulding, Michigan
Gage.
Roosevelt
Gage.
Shaw.
Frank A. Vanderlip, Illinois
Gage
McKinley
Horace A. Taylor, Wisconsin. _
Gage
Gage.
Roosevelt
Shaw.
Milton E. Ailes, Ohio .
McKinley __
Gage
Gage.
Roosevelt
Shaw.
Robert B. Armstrong, Iowa
ShawShawCharles H. Keep, New York
Shaw-_ •
James B. Reynolds, Massachusetts
Cortelyou.
Taft_
MacVeagh.
Roosevelt
Shaw _
- John H. Edwards, Ohio...'...:
Cortelyou.
Shaw-Arthur F . Statter, Oregon
° Beekman Winthrop, New York
Cortelyou
Cortelyou
Louis A. Coolidge, Massachusetts
5 Act July 11, 1890, provides for an additional Assistant Secretary.

Term of service

Arthur




From—
Apr. 3,1877
Dec. 9,1877
Apr. 10,1880

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

Feb. 28,1882
Apr. 17,1884

Apr. 16,1884
Nov. 10,1885

Mar. 14,1885 Apr. 1,1887
Nov. 10,1885 June 30,1886
July 12,1886 Mar. 12,1889

6,1887

Mar. 11,1889

Apr. 1,1889
Apr. 1,1889
July 22,1890

July 20,1890
Oct. 31,1890
Dec. 1,1892

July 23,1890

June 30,1893

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

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

Apr. 12,1893

Apr. 7,1897

Apr. 13,1893

Mar. 31,1897

July

1,1893

May 4,1897

Apr.
Apr.

7,1897
7,1897

Mar. 10,1899
Mar. 4,1903

June 1,1897
Mar. 13,1899

Mar. 5,1901
June 3,1906

Mar. 6,1901

Apr. 15,1903

Apr.

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

1,1906

Mar. 15,1908

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

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

July

XX

ASSISTANT SECRETARIES OF T H E TREASURY

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

Secretaries

MacVeagh.
MacVeagh
MacVeagh.
MacVeagh
Wilson
_ . . . McAdoo.
MacVeagh
Taft
MacVeagh.:
McAdoo.
Wilson
MacVeagh
Taft.McAdoo.
Wilson
McAdoo
McAdoo
McAdoo
McAdoo
McAdoo
McAdoo
McAdoo
Glass.
McAdoo
Glass.
Houston.
Harding
Mellon.
McAdoo
Wilson
Glass.
Houston.
McAdoo
Glass.
McAdoo
Glass.
Houston.
Glass...
Houston.
Glass
Houston.
Houston.
Harding
Mellon.
Wilson
Houston-Harding.
Mellon.
Wilson
Houston
Harding.
Mellon.
Houston
Wilson
Harding _.
Mellon
Mellon
Coolidge.Harding
Mellon
Mellon
Mellon
Coolidce
Mellon
Harding
Mellon
Mellon
_Coolidge -

Assistant Secretaries

Term of service

Charles D. Norton, Illinois.Charles D. Hilles, New York__
James F . Curtis, Massachusetts

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

A. Piatt Andrew, Massachusetts
Robert 0 . Bailey, Illinois

June 8,1910 July 3,1912
Apr. 4,1911 Mar. 3,1913

Sherman P . Allen, Vermont-

July 20,1912

Taft

John Skelton Williams, Virginia
Charles S. Hamlin, Massachusetts
Byron R. Newton, New Y o r k . .
William P. Malburn, Colorado
Andrew J. Peters, Massachusetts
Oscar T. Crosby, Virginia
Leo S. Rowe, Pennsylvania

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

To—
June 8,1910
Apr. 3,1911
July 31,19ia

Sept. 30,1913

24,1913 Feb. 2,1914
1,1913 Aug. 9,1914
1,1913 Oct. 1,1917
24,1914 Jan. 26,1917
17,1914 Mar. 15,1917
17,1917 Aug. 28,1918
22,1917 Nov. 20,1919

James H. Moyle, Utah 6-_

Oct.

Russell C. Leffingwell, New York

Oct. 30,1917

July

Thomas B. Love, Texas

Dec. 15,1917

Jan. 31,1919

Albert Rathbone, New York

Sept. 4,1918

June 30,1920

Jouett Shouse, Kansas.

Mar. 5,1919

Nov. 15,1920

Norman H. Davis, Tennessee

Nov. 21,1919

June 14,1920

Nicholas Kelley, New York - _ .

June 15,1920

Apr. 14,1921

•.

5,1917

Aug. 26,1921

5,1920

S. Parker Gilbert, jr., New Jersey 7__. July

6,1920

June 30,1921

Ewing Laporte,''Missouri

Dec.

4,1920

May 31,1921

Angus W. McLean, North Carolina..
Eliot Wadsworth, Massachusetts
Eliot Wadsworth, Massachusetts
Edward CMord, Illinois
Elmer Dover, Washington
McKenzie Moss, Kentucky
McKenzie Moss, Kentucky
Garrard B. Winston, Illinois
_ _
Garrard B. Winston, Illinois 8
Charles S. Dewey, Illinois
Lincoln C. Andrews, New York

Dec.
Mar.
Aug.
May
Dec.
Mar.
Aug.
July
Aug.
July
Apr.

4,1920
16,1921
3,1923
4,1921
23,1921
3,1923
3,1923
9,1923
3,1923
1,1924
1,1925

Mar.
Aug.
Mar.
July
July
Aug.

4,1921
2,1923
31,1925
9,1923
25,1922
2,1923

Aiier-

2.192.^

1 Nov. 19.1923

8 Act Oct. 6,1917, provided for two additional AssistaAt Secretaries for duration of war and six months
after.
7 Became Undersecretary July 1,1921.
«Became Undersecretary November 20,1923.




ANNUAL REPORT ON THE FINANCES
TREASURY

DEPARTMENT,

Washington, November WJ 1925,
S I R : I have the honor to make the following report:
The past year has been a period of genuine prosperity for practically all classes. Corporate profits are running higher than for
any previous year since 1919. Employment has been good, prices
comparatively stable, and trade on a high level as reflected in record
car loadings and bank debits to individual account. While production has been high, it has been as a rule well adjusted to the rate of
consumption and has not resulted in a general accumulation of large
stocks. The automotive and building industries have continued to
operate at a high level, and foreign trade has been increasing in
volume. More complete adjustment between individual industries
and economic groups has been effected, and the purchasing power of
the farmer further enhanced. Livestock prices especially have shown
considerable improvement during the past year, but practically all
branches of agriculture have shown marked recovery from the depression of two or three years ago.
Although business activity has been accelerated the credit situation has remained in a healthy condition and unsound expansion has
been avoided. Due to the increase in business and the exports of
gold, money rates have advanced from the unusually low level of
1924, and the wide spread between long-time rates and short-time
rates has been reduced. Security prices have continued to advance,
reflecting in part the increased earnings of corporations and in part
the gradual return to a lower yield basis, which is a normal development following the high rates prevailing after the war and during
the period of business instability and uncertainty. This advance has
been aided by the prospect of tax reduction and reform. Most of the
factors underlying the present business situation are apparently
sound and warrant optimism for the future. The long period of
steady employment for industrial workers and the increase in farm
income have augmented the country's purchasing power. Although
60501—FI 1925t




1

1

2

BEPOKT ON THE FINANCES

there is some tendency for the consuming public to buy every conceivable commodity ^'on time'' and mortgage future earnings, still
business men are conducting their affairs with restraint and caution
in order that prosperity may not bring carelessness. I t is hoped,
furthermore, that the speculative tendency in real estate in some
communities may not proceed to the point of undermining the spirit
of caution in business.
The program of public economy and public debt payments which
has been rigidly adhered to during the past five years has been a
direct contributing factor to the improvement in the credit and
security markets. The return of over half a billion dollars annually
to investors and financial institutions has not only reduced the publicdebt burden and greatly improved the public credit, but it has
released funds for business and for investment in other securities.
Any interference with the present debt-paying program would tend
to offset the good effects which have been already accomplished and
would prove most unfortunate. The country is now prosperous and
well able to liquidate the debt at a reasonable rate, thereby gradually
reducing the tremendous interest charges. The perpetuation of a
large public debt has never proved to be a sound policy. On the
contrary it has often been a great handicap in emergencies. This
country can ill afford to maintain its finances in such shape as to
prove embarrassing to the public credit in times of need. Furthermore, no government t h a t is wisely administered will, arrange its
financial program on the assumption, tacit or expressed, that there
will be no further heed for debt expansion for generations to come.
I t is only elemental caution to remove the present burden with
reasonable rapidity.
Elsewhere in the report I am recommending tax reduction based
on the estimated surpluses for this fiscal year and the fiscal year 1927.
The reduction asked for, if applied with the purpose of making needed
tax reforms, will afford substantial relief to taxpayers and leave a
better balanced tax system. I can not refrain from pointing out, however, the danger of excessive reductions which may be advocated. A
reduction of taxes below the needs of the Government would result
in an annual deficit to be covered by borrowing. Such a condition of
affairs would be inexcusable and might even necessitate the raising of
tax rates later with all the bad effects which a constant juggling of
rates would entail. Taxable incomes do not maintain a constant
upward march year after year; they fluctuate from time to time and
consideration must be given to the lean years as well as to the
prosperous ones.
Gratifying progress has been made during the year in funding the
foreign obligations held by this Government; agreements have been
reached with Belgium, Czechoslovakia, Latvia, Esthonia, and Italy




SECEETARY OF THE TREASURY

3

since my previous report. The total amount which has been refunded
to date aggregates $7,389,914,000 and the amounts remaining
unfunded, principal and interest, aggregate $4,743,955,617, the
greater part of which are French obligations. I t is hoped that other
funding agreements can be arrived at during the coming year.
In all these settlements the debt commission, being mindful of the
havoc wrought in European countries by the war and the disorganization of their economic life, has accepted liberal terms of payment
particularly in the earlier years. While it is obvious that many of
the countries can not make, heavy payments in the immediate
future, at the same time their vast recuperative powers are recognized.
I n 20 or 30 years hence under modern industrial conditions there will
undoubtedly be great changes in their financial capacity, and the real
burden of the annual payments which are spread over a period of 62
years will dwindle in proportion to the increase in wealth and national
income. Dm-ing the century from 1815 to 1914, for example, the
national wealth of the United Kingdom increased approximately
50 per cent every 25 years, or doubled every 50 years, according to
available estimates of national wealth. Taking the period as a
whole, the wealth of France increased at about the same rate, but from
1870 to 1924 the rate of increase was lower, about 34 per cent every
25 years. While there are far too many uncertain factors to predict
similar rates of increase in the future it is obvious that the recuperative powers of-nations through normal growth is an important factor
to be considered in debt settlement agreements.
The return of England and many other countries to the gold
standard and the further progress made in the stabilization of
exchanges, during the year, reflect substantial improvement in the
world's affairs. The currency reforms effected are important steps
in the gradual readjustment of economic conditions which were
greatly dislocated during" and following the war. Purchasing power
and standards of living are still lower in most countries than prior
to the war and production and trade are still restricted. The return
to full economic activity is in some cases a slow process due to scarcity^
of capital and credit and the low purchasing power of the people.
With the working out of the Dawes plan, the settlement of inter- •
allied debts, the reorganization of currency systems, and the stabilization of exchanges, however, many uncertainties have been removed and the way is clear for more complete world recovery. •
Credit and capital are beginning to flow more freely to those countries
where i t is most needed and gradually the lines of international
trade are being reconstructed along lines dictated by the new conditions. A number of favorable events in recent months, including
the Locarno agreement, lend support to the optimistic view regarding
the economic rehabilitation of Europe.




REPORT ON T H E FINANCES
TAXATION

I t is customary for the Secretary of the Treasury in his annual
report submitted to Congress to embody his recommendations forchanges in the taxing system. In order to have a tax bill ready forsubmission to Congress when it meets in December, the Ways and
Means Committee of the House commenced hearings on a new
revenue act on October 19, 1925, and at the request of that committee the Secretary of the Treasury appeared before them and presented the views of the Treasury on taxation. I t is not necessary,
therefore, to restate in the body of this report these recommendations. A copy of my statement to the Ways and Means Committee
appears as Exhibit 87, page 346.
There is, however, one principle of taxation which requires further emphasis. If taxation is to be successful as a revenue producer
in times of business depression as well as in times of business prosperity, it must have a broad base as a foundation. This is particularly true with respect to income taxes. If exemptions are raised
too high, the number of taxpayers is so materially reduced that the
remaining taxpayers in times of national emergency can not furnish
the revenue required by the Government. This principle has been
recognized in all countries where taxation must be scientifically constructed in order that the government have the means to exist.
Comparison of the different rates of income tax in Italy, Belgium,
France, England, and the United States is illustrative of this point.
Taking as a typical instance a married taxpayer without dependents,
income taxation begins in Italy at $40, in Belgium at $225, in France
at $650, in England at $1,125, and in the United States at $2,500.
If we take particular incomes in these countries, the tax of a similar
taxpayer would be as follows:
I n c o m e taxes
Income
Italy

$1,000-.
•$2,000..
$3,000-.
$4,000..
$5,000..

$189. 21
392.18
599:30
812.18
1, 025. 06

Belgium

$29.15
107. 70
238. 45
413. 35
619. 90

France

$48. 99
174. 55
348. 00
569. 40
838. 75

England

0
$67.
202.
382.
787.

50
50
50
50

United
States
0
0
$7.50
22.50
37.50

I n the discussions leading to a settlement of the Italian-American
war debt it was stated that if Italy adopted the exemptions now in
effect in the United States it would lose over 99 per cent of its revenue
from this source of taxation. While possibly it is not necessary under
present conditions that the United States should have the incidence
of taxation as low as that of other countries where the average income




SECRETARY OF THE TREASURY

0

is much less, nevertheless from a revenue standpoint alone it is
exceedingly dangerous to take out the lower tiers of this pyramid of
taxation, since it is upon this broad base that a continuous source of
revenue must rest.
The suggestion has been made, without due consideration of the
facts, that an increase in the income tax exemption to $5,000 would
amount to no real loss of money td the Government, since it was
erroneously stated that the cost of collection to the Government
exceeded the revenue. The political argument was that such a raise
would relieve an enormous number of taxpayers from paying any tax
whatsoever. The views of the Treasury on this subject were presented in a letter by me to Senator Edge, from which I quote:
You suggest that it might be advisable in amending the income tax law to
exempt all net incomes of $5,000 or less. Your reason for this suggestion is your
information that it probably costs the Government more to collect the tax on
net incomes up to $5,000 than the Government receives from the tax, and therefore it would be in the interest of economy from the Government's standpoint to
exempt net incomes of $5,000 or less.
Your estimate of the loss of revenue of $83,000,000 by the adoption of such a
suggestion is apparently based on the elimination of the tax on net incoines of
$5,000 and under, without extending a like exemption to taxpayers with higher
incomes. It would hardly seem equitable to raise the exemption on taxpayers
having incomes of $5,000 and less and not permit similar exemption to taxpayers
having incomes in excess of $5,000. For example, it is not fair to levy no tax on
a man with a net income of $4,900 and to tax a man with an income of $5,100 on
.all income in excess of $1,000. If the principle of a straight $5,000 exemption
on all taxpayers were applied, it is estimated that the loss of revenue, based on
1923 returns, instead of $83,000,000 would be $167,000,000.
If now we compare this prospective loss of revenue with the expense of collection, it is obvious that the tax is very productive of net revenue to the Government. The total expenditures of the Internal Revenue Bureau for the year 1924
were some $42,000,000. From this $8,000,000 should be deducted for expenditures directly made for the enforcement of the prohibition and narcotic laws,
leaving some $34,000,000 to represent the expense of collecting the personal
income taxes, both large and small, the corporate income taxes and all the
miscellaneous taxes. As a matter of fact, the small returns are audited in the
field in the various collectors' offices and except in unusual cases do not come into
Washington at all. This audit is part of the regular work in the collectors' offices,
and the total expense of all collectors' offices is only about $14,000,000 a year.
In other words, at an expense of $14,000,000 a year these small returns are audited
and the collectors do all the other work required of them. It seems to me if
we had a complete cost system there would be allocated to the expense of collecting the tax on net incomes of $5,000 and less not more than $5,000,000. Compare
this expense with a revenue of $167,000,000.
There is another point to be considered. It would not be practicable, even if
the exemption were raised, to eliminate the making of returns by those having a
certain gross income though their net income is below the exemption. At present
all having a gross income of $2,000 a year must make returns. Were this not
required, many taxable incomes would evade payment of tax. So if the exemption were raised almost as many returns would have to be audited. You can-




6

REPORT ON THE FINANCES

readily understand this, since as the law now stands less than 50 per cent of those
who make returns and whose returns are audited pay any tax at all.
Coming now to the question of delay and congestion in the bureau, it has
been our experience that returns of small net incomes are very quickly audited,
and that the returns of large incomes are the principal cause of delay and require
the great number of employees. An experienced auditor can handle up to 300
small returns a day, whereas it may take him three or four months to handle one
large return. Add to this the fact that these returns are audited in the field, and '
you can easily see that their elimination would in no wise relieve the Bureau
of Internal Revenue from its present congested condition nor permit a lowering
of the period of the statute of limitations. If you will examine the forms used for
returns of less than $5,000 and for those in excess of $5,000, copies of which I
inclose, you will note the simplicity of the former and the complicated character
of the latter. These forms have been the result of practical experience and give
a clear indication of the difference in time required for audit.
It is true that under the present law a married man with an income of $3,000
pays but $7.50 tax, or one-quarter of 1 per cent of his income; one with $4,000
pays $22.50 tax, or one-half of 1 per cent; and one with $5,000 pays $37.50 tax, or
three-quarters of 1 per cent. These seem insignificant sums. They are to the
taxpayer, but not to the Government. It must be remembered that great businesses have been built up on small returns and large volume. The most conspicuous example which comes to my mind is the 5-and-lO-cent store. We ignore
experience if we say that these small taxes from net incomes of $5,000 or less are
not worth collecting.
Income tax first touches the citizen of this country at a much higher point of
income than in any other country with which I am familiar. In other countries
the tax is on a broad base. With us this base has already been very much
narrowed. To narrow it further would make the whole tax structure unstable
and its continued usefulness as a source of revenue uncertain. As a matter of
policy it is advisable to have every citizen with a stake in his country. Nothing
brings home to a man the feeling that he personally has an. interest -in seeing
that Government revenues are not squandered, but intelligently expended, as
the, fact that he contributes individually a direct tax, no matter how small, to
his Government. I feel, therefore, that the adoption of your suggestion would
be wrong in policy and ineffective in decreasing the cost of collection or in eliminating delay and congestion. The tax on'the incomes to be affected is already
so small as to be no burden to the taxpayer. The sole result of such a change
would be an enormous loss of revenue to the Government without a single compensating advantage.
RECEIPTS AND EXPENDITURES

The Treasury's accounts for the fiscal year ended June 30, 1925,
showed a surplus of $250,505,238. Total ordinary receipts aggregated $3,780,148,684, and expenditures chargeable against such
receipts were $3,529,643,446. This surplus is about one-half the
size of the 1924 surplus, but is considerably larger than had been
anticipated at the beginning of the year, in view of the substantial
tax reductions effected in the revenue act of 1924. The estimated
surplus for 1925 which appeared in my previous annual report was
about $68,000,000, and the'actual surplus as shown by the daily.
Treasury statement was approximately $182,000,00.0 in excess of this



SECRETARY OF THE TREASURY

7

estimate. The increased surplus is due largely to heavier receipts
than anticipated. Expenditures were $4,440,000 under estimates,
but receipts were $178,000,000 in excess of the estimate which was
made before the effects of the new revenue act on collections could be
observed.
Income taxes, which were $100,000,000 in excess of the estimate,
aggregated $1,760,000,000, although substantial reductions were made
in the rates. This compares with $1,842,000,000 collected during the
fiscal year 1924 and $1,678,000,000 during the fiscal year 1923 under
higher rates, and is a clear indication of the growing improvement in
the country's business structure and the advantages flowing from a
reduction in excessive rates of tax.
Customs receipts aggregating $547,561,226 and miscellaneous
internal revenue aggregating $828,638,068 were almost identical with
estimates, although numerous changes had been made in the internal
revenue rates, the influence of which had to be appraised in making the
estimates. In the miscellaneous receipts of $643,411,567 there were
also increases over estimates, the principal of which were $34,000,000
on account of the railroads, $2,500,000 from sale of other securities
owned by the Government, $15,000,000 from Army costs receipts,
$3,500,000 from river and harbor improvements, $6,400,000 from sale
of clothing and small stores account of the Navy Department, and
$11,500,000 on account of Indian moneys.
A detailed statement of receipts and expenditures during the fiscal
year 1925 as compared with 1924 appears on pages 150 to 164 of this
report.
For six successive yeai^s Government receipts have been substantially in excess of expenditures, as shown in the following table:
Fiscal year

•\
1920
1921-1922
1923-1924
1925

-

_

Total ordinary
receipts

Expenditures
chargeable
against ordinary receipts

Surplus

$6, 694, 565, 388 $6, 482, 090,191 $212,475,197
86,723,771
5, 624,932,960 5, 538, 209,189
3,795,302,499
4,109,104,150
313,801,651
4,007,135, 480 3, 697, 478,020 . 309,657,460
4, 012,044,701 3,506, 677,715
505, 366,986
250, 605, 238
3,780,148, 684 3,529, 643,446

The total surplus during those six years aggregated $1,678,000,000.
This total amount has already been used for retirement of the public
debt and is not available, therefore, for tax reduction or for other
purposes. In fact, the surplus for a given year does not represent
an accumulation of cash. It automatically works a reduction of the
debt during the year by permitting new financing in smaller amounts
than, the maturing obligations.




8

REPORT ON T H E FINANCES

On page 141 are shown the estimates of receipts and expenditures
for the fiscar years 1926 and 1927. The prosperity of the current
calendar year and the very substantial corporate and business
profits will undoubtedly be reflected in the tax receipts of both
fiscal years. The estimated surplus for 1926 is $262,041,756, and
for 1927 $330,307,895. It is on the basis of this expected surplus
during the current and future years that I have recommended
further tax revisions.
'(,000 T

5,000

4,000
Alili
^

3,000

, a.47/
^ zz\

OTHER

PROCEEDS P R O i l
JPORBION OBLIoAnOMS!

CUSTOMS
MISCELiIiAiaBOXJS-

2,000
4iT 7.1 INCOME AND
^'
PHOPITS T A X B S

1920
loai
1QZ&
isa3
ISa^j
192>5
DIAGRAM 1.—Ordinary receipts of the Government for the fiscal years 1920 to 1925

Trend of tax receipts
Total tax receipts from customs and internal revenue were $3,137,000,000 during the fiscal year 1925, compared with $5,728,000,000 in
the peak year 1920, a decline of over 45 per cent. Diagram 1, above,
and Diagram 2 on page 9 show the trend of these receipts during that
period. The two factors which have been primarily responsible for
changes in tax receipts are tax revisions and changes in business
activity. Two revenue laws, 1921 and 1924, made substantial reductions in income and other tax rates and eliminated certain miscellaneous war taxes. The price deflation and severe business depression
during 1920-21 were material factors in the decline in income taxes
during the fiscal years 1921 and 1922. Income tax receipts during
the current fiscal year will be higher, according to present estimates,
than for any previous year since 1922 in spite of the material reductions in the revenue act of 1924. The following compilation of cor


SECRETARY OE THE TREASURY

porate profits shows earnings for the first two quarters of this year
higher than for the corresponding period of any previous year since
the depression:
[Millions of dollars]
' 1923
Kind

Number
of companies

1924

3d
qtr.

130
185
36

170
262
35

126
277
80

360

Total

2d
qtr.

97
193
70

Manufacturing
Railroad
Telephone .

1st
qtr.

351

467

433

4th
qtr.

1925

1st
qtr.

2d
qtr.'

3d
qtr.

4th
qtr.

1st
qtr.

. 113
255
35

151
203
35

116
188
37

99
287
36

97
309
43

140
204
44

173
234
46

403

389

341

422

449

388

453

2d
qtr.

Diagram 2 also gives a comparison of current tax receipts with prewar receipts. The striking feature is the predominant part played
by the income tax at present. Nearly three-fifths of the Federal tax
receipts now come from the income tax, while in pre-war days practically the entire tax income came from customs and miscellaneous
internal revenue. At the same time receipts from both customs and
miscellaneous internal revenue are more than double the pre-war
figures.
BOLLAks

A

A

s.ooo

/V

4.00P

3,000

/ INCOME
/ PROFITS

AND
TAXES

21,000

/ .^S05r™J
J

l.OOO

/MlSCBl4liA:NEOUS

AJ

^^^(X()^l^^^^^^j^^^^m

^)()^()000W^^

^^^&^^^^^^^m

O

J.900
1Q05
5.910
1915
i.BaO
18 2 5
DIAGRAM 2.—Government receipts from customs, rniscellaneous internal revenue, and income and profits
taxes for the fiscal years 1900 to 1925

Diagram 3, page 10, illustrates the changes which have taken place
in miscellaneous internal revenue. Prior to the war about two-thirds
of the income from this source came from alcoholic beverages, but
this item is now negligible, and the predominant place has been taken
60501—FI 1925t



2

10

REPORT ON T H E

FINANCES

by tobacco. About two-fifths of miscellaneous internal revenue now
comes from the tobacco tax, which yielded $345,000,000 in 1925 compared with $88,000,000 in 1916. This increase is due in part to the
increase in the consxunption of cigarettes and in part to an advance
in the tax rate. Among the more substantial.sources of revenue
which were adopted as war measures and are still in force are the

1,500

1,250--

1.O0O

T50

5O0

2,50

1810
1915
192.0
192.5
DIAGRAM 3.—Government receipts from miscellaneous internal revenue for the fiscal years 1910 to 1926

taxes on automobiles, estates, admissions and dues, and corporation
capital stock. These items plus the tobacco, alcohol, and stamp
taxes produced 94 per cent of the total miscellaneous internal revenue in 1925. There are many other taxes such as the sales taxes on
cameras and lenses, photographic films, firearms, cigar and cigarette
holders, coin-operated machines, and mah jongg, and occupational
taxes on various types of brokers, proprietors of bowling alleys, billiard rooms, etc., which yield little revenue but add to the complexity
of the tax system.
The Federal tax system has changed radically since the early days
of the Government. It has changed radically even since the beginning of this century. In the early days Federal taxes were for the
most part customs duties. Later, internal taxes were developed
on a few articles of consumption widely used and, finally, after 1909,
when the income tax was added, internal taxes replaced customs as
the more important revenue producer.




11

SECRETARY OF T H E TREASURY

I t is difiicult for those who paid income and nuisance taxes during
the war to realize that during half the life of the Federal Government
there were practically no taxes of this kind. From 1791 to 1860,
$85 of every $100 of Federal receipts came from customs duties, so
that the individual citizen supported the Government indirectly.
He paid his taxes in the prices he paid for imported articles. Only
about $1.20 in every $100 came from internal taxes on goods and services, and these were levied for short periods only, as during the War of
1812. The rest of the receipts, of about $13.80 per $100, came from
sources other than taxation—mainly the sale of public lands.
During the Civil War an elaborate system of internal taxation was
developed. Taxes were levied on an extensive variety of goods—on
documents, on incomes, on inherited estates, and on business transactions, or, in the common parlance of the time, ''on everything from
the cradle to the grave.'' After the war most of the new taxes,
including the income tax and the inheritance tax, were removed.
They were retained on a few articles of wide consumption, principally
tobacco products and alcoholic beverages.
The value of these two taxes as revenue producers was soon demonstrated. The yield was large and the administration was easy and
successful, notwithstanding gross evasion at different times. Collections were made from the manufacturer when the article left his
hands. The base of the tax was wide—that is, people used tobacco
and alcohol products quite generally, so that there was a large volume
of commodities on which to make collections. Until 1910, when a
different type of internal tax was introduced, these taxes on articles
of consumption produced about $42 in every $100 of Federal receipts.
Receipts from customs did not decline—they increased. The total
receipts of the Government were increasing rapidly because of increasing population and the rapid economic development of the
country.
The following table shows the distribution of Government tax
receipts by periods from 1791 to 1925 (warrant basis):
Distribution of tax receipts
Average
annual tax
receipts

Period

1791-1860
1861-1909..
1910-1916 -.
1917-1921
1922-1925 --

-

-




-

Customs

$22, 254,979
354, 028, 988
654, 370,098
3,909, 695, 042
3, 307,987,745

Per cent
98.6
53.7
43.5
6.3
15.2

Income
and
profits
taxes

Miscellaneous
internal
revenue

Per cent

Per cent
1.4
44.1
47.9
27. 3j
29.0

2.2
8.6
66.4
55.8

12

REPORT ON T H E FINANCES

Trend of expenditures
Diagram 4, below, shows the trend and in a general way the
make-up of expenditures from 1920 to 1925. Table F on page 468
gives them in greater detail for the same period, and Table K, pages
482 to 493, gives a general classification of expenditures on the
warrant basis back to 1791.
I t will be observed that' there were heavy reductions in expenditures
daring 1921 and 1922, when the War and Navy Departments were
being readjusted from a war-time to a peace-time basis and the
operations of special war activities, such as the War Finance Corporation, Shipping Board, and Grain Corporation, were being curtailed.
Of
JDOXIXAAHS

t.ooo

6.000 -

s»ooq-

4?,0 0 0

•

ALIi OTHER
TAX xspmnDs A N D
tNYHSTMBNTB OS"
THUST X

"WAR AKD NAVY
i)jQi»AiirrM:BNTs

i,ooo-

Lie DEBT INTEREST
AND P K l N C l l W l j

192,0 ISai
1922
1323
192,4 1925
DIAGRAM 4.—Government expenditures chargeable against ordinary receipts for thefiscalyears 1920 to 1925

Since 1922 the trend has continued downward, but much more
gradual in degree. This trend reflects the results of the administration's economy program and the continued readjustment from war
activities. From 1922 to 1925 total expenditures, for example,
were reduced about $266,000,000. This figure, however, is not an
entirely accurate reflection of the trend in departmental expenditures
proper, because it is affected by such special expenditures as tax
refunds, operations in special accounts, debt retirements, etc. For
jthe sake of clarity Government expenditures may be classified under
three groups: (1) Public debt retirements chargeable against ordinary
receipts; (2) special expenditures, which include interest on the
public debt; tax refunds; postal deficiencies; Panama Canal; operations




13

SECEBTAEY OF THE TEEASUEY
MILLIONS"
OF DOLLARS

noo
1000
900
800
TOO
600
500
400

/
300
200

ioo

•••••BHiiBISBBnHHBBBHBHBBHBH
1890
1300
1910
1920
DIAGRAM 5.—Interest on the public debt for the fiscal years 1890 to 1925

of Shipping Board, War Finance Corporation, and other special accounts; purchase of obligations of foreign governments; investment
of trust funds; and other items of similar nature; and (3) general
expenditures, which include the legislative establishment, executive
proper, the 10 departments, the Veterans' Bureau, other independent
offices and commissions, and the District of Columbia. Expenditures
classified according to these three groups since 1920 are as follows
on the cash basis:
[In millions of dollars]
Total
Public debt
expendiretirements Special General
tures
chargeable expendi- expendi- chargeable
against
against
tures
tures
ordinary
ordinary
receipts
receipts

"

1920
1921
1922
1923-1924
1925

.

..

.

_

:

,.

.

79
422
423
403
458
466

»3,228
1 2,253
1,236
1,344
1, 215
1,226

1 3,175
1 2,863
2,136
1, 950
1,833 •
1,837

6,482
5,538
3,795
3,697
3,506
3, 530

1 In Table F and other Treasury records refunds and investments of trust funds are included under the
Treasury Department for years prior to 1922, and postal deficits under Post OflSice Department. In this
table and elsewhere in this discussion, however, these items have been included under special expenditures
in order to make the figures comparable with 1922 and'subsequent years. The figures representing these
items for the earlier years are on the warrant basis and may differ slightly from cash.figures, which are not
available. The totals shown for general and special expenditures are similarly slightly affected.

Public debt retirements chargeable against ordinary receipts are
treated in the article on the public debt, pages 21 to 24.



14

REPORT OK T H E FINANCES

Special expenditures.—The greater part of special expenditures at
t h e present time consists of interest on the public debt, refunds of
customs and internal revenue, and investments of trust funds, chieffy
the Government life insurance fund and civil service retirement fund.
Diagram 5, page 13, shows payments for interest on the public debt for
each year from 1890 to 1925. Such outlays as the refunds and trust
fund investments are, of course, not strictly expenditures of the
Government, but under the Treasury system of accounting following appropriation and authorizing acts they are included in the total
and for the greater part offset corresponding receipts. The* following table shows the principal items of the special expenditures on
the cash basis:
[In millions of dollars]

Interest
on the
public
. debt

1920
192-1_...
1922
1923__
1924.
1925

-.
.......1.
. . ...

.--.

1,020
999
' '991/
1,056
941
• 882

Refunds
of customs and
internal
revenue

.

47
58.
83
154
148
171

Postal
deficiency

0
130
64
32
, 13
23

Operations in
special
accounts

1,689
930
61
50
55
- 11

Trust
fund
investr
ments

10
. 29
34
34
43
43'

Purchase
of obligations of
foreign
governments
421
74
1'

All other
special
expenditures

41
33
3
18
15
U08

» Excess credits, deduct.
)
* Over $99,000,000 of this was for the adjusted service certificate fund, as provided for in the adjusted
compensation act of May 19,1924.

The operations in special accounts, as shown in column 4 of the
above table, include railroads, War Finance Corporation, Shipping
Board, variations in working cash balance of alien property funds.
Grain Corporation, and Sugar Equalization Board. In 1920 and
1921 there were still heavy disbursements on account of railroads.
Shipping Board, and Grain Corporation. They .declined rapidly
after that time, however, and have been in part offset by net credits
from other special accounts. Some of these expenditures, it will be
observed, were in the nature of capital outlays. The figures given
for these operations are net and make allowances for receipts and
deposits credited to the accounts concerned, except that beginning
with the fiscal year 1923 receipts from proceeds of railroad securities
(principal and interest) have been included in receipts. Prior to
1923, however, receipts from railroad securities were credited against
•expenditures.
General expenditures,—It is the general expenditures shown in the
third column of the table on page 13 which more nearly represent
'Government expenditures proper, and.a large proportion of these expenditures, b u t not all, is subject to executive control in the sense
t h a t they are not definitely fixed in amount and can be subjected
to administrative economies. General expenditures declined over




15

SECRETARY OF THE TREASURY

$1,300,000,000 between 1920 and 1925. The greater part of this
occurred during 1921 and 1922 and was largely due to reductions of
the War and Navy Departments. From 1922 to 1925, however,
the reductions aggregated about $300,000,000, or at the rate of
$100^000,000 per year. The relation of War and Navy expenditures
to other general expenditures is shown in the following table (cash
basis):
[In millions of dollarsl
All other
departWar and
Total
ments, in- general
Navy Veterans' Pensions dependent
Depart- Bureau
expendioflQces,
ments
tures
commissions, etc.
1920
1921
1922
1923
1924........
1925

. . .
^

2,347
1,752
932
726
681
708

197
1336
1409
462
409
385

213
261
253
264
228
218

1518
1514
1542
498
515
526

3,176
2,863
2,136
1,950
1,833
1,837

1 Payments on account of veterans' relief made prior to the organization of the Veterans' Bureau on
Aug. 11,1921, by the War Risk Insurance Bureau are usually included under the Treasury Department,
while similar payments made prior to that date by the Federal Board for Vocational Education are
included..under other independent olfices and commissions. In this table, however, and elsewhere in this
discussion those expenditures have been included under Veterans' Bureau for comparative purposes and
taken out of expenditures for the Treasury and other independent offices and commissions. The figures
shown for Veterans' Bureau and pensions are on the warrant basis, while the remainder of the table is
on the cash basis. The total shown for all other departments, etc., being a residual figure, is slightly
affected by this.

Diagram 6, page 16, shows the trend of War and Navy expenditures
from 1890 to 1925, and Diagram 7, page 17, shows payments for pensions from 1860 to 1925.
It will be noted that the greater part of the general expenditures
is for the War and Navy Departments, the Veterans' Bureau, and
pensions, and the minor part for all other departments, independent
offices, commissions, etc. In fact, the smallness of the latter figure
in comparison with total Government expenditures is rather striking.
It is slightly over one-seventh of the total and represents all governmental outlays after deducting public debt expenditures, special
expenditures (consisting very largely of interest on the debt, tax
refunds, and investments of trust funds), and expenditures for the
national defense and care of war veterans.
It may be of some interest to analyze further that residual figure.
A substantial part of it is spent for Indian affairs and good roads.
Nearly half of the expenditures of the Interior Department (exclusive
of pensions) is for Indian affairs, and over 60 per cent of the expenditures of the Department of Agriculture is for good roads. The total
for all other departments, etc., also includes expenditures for the District of Columbia, the greater part of which is paid from District
taxes.




16

REPORT ON T H E FINANCES

1

••

SPANISH
AMERICAN
WAR

WBBifgiHIiHBiiliiiill
1890
1300
±3±0
192.0
DuQEAM 6.—Expenditures for the War and Navy Departments for the fiscal years 1890 to 1925 (exclusive
of expenditures for the Panama Canal, but inclusive of expenditures for rivers and harbors)

The Treasury, which handles the Government's fiscal affairs and
carries on various other activities, accounts for another substantial
part of that residual figure. The principal expenditures by the Treasury during 1925 were as follows: Collecting customs, $16,302,498;
collecting internal revenue, $35,675,308; the public debt service,
$5,310,835; prohibition and narcotic enforcement, $10,388,360; the
Coast Guard, $26,814,083; the Public Health Service, $9,244,851; and
public buildings, $14,457,390. The following table shows for 1920
to 1925 the expenditures for Indian affairs, good roads, the District
of Columbia, and the Treasury:
[In millions of dollars]
Indian
affairs i
1920
1921
1922
1923.
1924
1925

-

40
41
• 38
45
47
39

Good
roads i
24
62
95
79
90
105

District
of Columbia
20
23
24
24
26
33

Treasury 3

.

201
175
191
8 145
8 138
128

All
other
233
213
195
205
216
221

.1 Warrant basis.
2 After deducting refunds of customs and internal revenue, trust-fund investments, and war-risk insurance on the warrant basis.
8 Includes $12,000,000 subscriptions to capital stock of the Federal intermediate credit banks.

That leaves a remainder of about $200,000,000, or slightly more,
as the annual expenditures for all other governmental activities.



SECEETARY OF THE TREASURY

17.

A complete list of those activities would be too long to name here, b u t
they include .the legislative establishment, the executive proper, the
Civil Service Commission, the Employees' Compensation Commission, .
the Federal Board for Vocational Education, the Federal Reserve
Board, the General Accounting Office, the Interstate Commerce
Commission, the Federal Trade Commission, the Tariff Commission,
and all activities of the Departments of Agriculture (exclusive of
good roads), Commerce, Interior (exclusive of pensions and Indian
affairs). Justice, Labor, and State.
MILLIONS
DOLLARB

260|
240

200
180
160
140
120
100
80|

6o|
40

sol
o

.lllllllllllll

1860
IBTd
1880
1890
1900
1910
1920
DiAQEAM 7.—Government expenditures for pensions for the fiscal years 1860 to 1925

Diagrams 8, 9, and 10, pages 18 and 19, show the trend of expenditures of the various departments. Details of expenditures of the
departments for the past fiscal year can be found on pages 156 to
164 of this report.
The above analysis will now permit a comparison of current expenditures with pre-war expenditures and throw some light on the
speculation as to the extent and nature of further possible reductions. As evidence that governmental activities are still inflated
and burdened with superfluous clerks it has been pointed out that
expenditures in the fiscal year 1925 were over $3,500,000,000 as
compared with about $742,000,000 in 1916, the last full pre-war
fiscal year, or nearly five times as great. We have found, however,
that over one-third of the 1925 expenditures were for debt retirements and interest on the public debt, which are direct legacies from
the war and from which there is no escape for many years to come.
If we subtract these and other special outlays, consisting largely of



18

REPORT ON THE FINANCES

MILLIONS
or
DOLLARS

•

• VV'

/

1

300

/
INTERIOR

^

^

^

^

^

\

/

/^A

/
#

±50

//

/

IOO

/

THeASURY

^^^

.

/

/

^

__ AO.RiCiJ L T i i . « J

1910
iei5
192.0
1.92i5
DIAGRAM 8.—Expenditures for tho Departments of the Interior (including pensions), Agriculture (including good roads), and Treasury for the fiscal years 1910 to 1925
MILLIONS OF
DOLLARS

1910

1915

19 2 O

192 5

D[A.QKAM 9.—Expenditures for the Departments of State, Justice, Commerce, and Labor for the fiscal
years 1910 to 1925




19

SECRETARY OF THE TREASURY

refunds, trust fund investments^ etc., from total expenditures, we
find that the general expenditures of the Government in 1925 were
$1,837,000,000, compared with a corresponding figure of about
$675,000,000 in 1916. These figures are still not strictly comparable, however. The 1925 general expenditures include $385,000,000
for veterans' relief, an item which was negligible in 1916. Furthermore, pensions were $218,000,000 in 1925, compared with $159,000,000
MILLIONS.
or
DOLLARS

4.00

1925

LABOR

STATE JUSTICE

COM- TREAS"
MERGE
URY

A G R I - INTERIOR
CULTURE

NAVY

WAR

DUGEAM 10.—Expenditures for the various Government departments for the fiscal year 1925 compared
with 1916.

in 1916. If allowance is made for these items, the 1925 expenditures
were slightly more than twice as large as in 1916.
These figures are, of course, expressed in terms of dollars, but the
dollar of to-day is not the same as the pre-war dollar. Prices in 1925
were approximately 40 per cent higher than in 1916. The same activities with the same number of employees then, if we assume that
salaries should keep pace with prices, would cost the Government
about 40 per cent more in 1925 than in 1916. There are still other




20

EEPORT ON T H E FINANCES

factors which would account for higher Government costs now thaa
in pre-war days. One is the greatly enlarged activities of the Treasury Department necessary to handle the Government's finances.
The public debt is now about 20 times as large as in pre-war daysy
and tax collections about 5 times as large, all of which entails a greatljF
increased personnel. Changing world conditions and the consequentv
economic readjustments have also made necessary the enlargement
and improvement of services and scientific aids to agriculture and •
commerce. Economically. and politically the United States is today much more closely bound to the rest of the world than ever before. These broader relationships and the increasing importance of
world markets enhance the value of certain types of collective or
governmental service.
In addition to the above factors, there is always to be considered
the normal growth of Government expenditures that comes with &
country's development and the increasing complexity of civilization.
Federal expenditures increased 30 per cent during the 10 years imme-^
diately preceding the war—that is, from 1906 to 1916. From 1896to 1906 the increase was over 60 per cent, and for the 10 years prior
to that 45 per cent. These increases were considerably in excess of
the growth of population during the same periods. The growth of
population. Federal expenditures, and national wealth from 1850 to^
1912 are shown in the following table:
Federal expendiNational wealth
tures
Population in
millions Amount in Per
Amount in Per
billions
millions
capita
capita
1850
1912....

_.

23.2
95.1

$39.5
689.9

$1.70
7.25

$7.1
186.3

$306
1,95&-

Thus between 1850 and 1912 Federal expenditures increased about
seventeenfold, while population multiplied about four times. During
the same period, however, the national wealth increased about twentyfivefold and the national income rose to about 16 times its earlier
size. This is apparently very similar to the history of other nations.
Collective action and public expenditures tend to increase with the:
gradual growth of population and wealth and the development of
more complex forms of industry and civilization.
From the above analysis of expenditures it is apparent that thereadjustment from war-time activities has been fairly well com-,
pleted and that there no longer remain any large unusual outlays^
that can be sloughed off. Taking the price level and other factors^
into consideration, the general expenditures of the Government are?,




SECRETARY OF THE TREASURY

21

•not put of line with pre-war expenditures. For five years the administration has exerted the utmost pressure to eliminate unnecessary
•outlays and reduce necessary expenditures to a minimum. These
-efforts have been attended with gratifying success, but there can be
no thought of a return to anything approaching a pre-war level of
expenditures. We still miake, as a result of the war, tremendous
expenditures for debt retirements, interest on the debt, care of dis:abled veterans, etc., but these are unavoidable and will be necessary
for many years to come. I t is the inevitable price which we continue to pay for the war.
In this connection it is of interest to point out the proportion of
'Government expenditures which are due to war. While it is not
possible to segregate entirely all expenditures which might fall in this
'Category, if we add to the disbursements for public debt retirements
interest on the debt. War, Navy, Veterans^ Bmreau, and pensions,
other extraordinary expenditures, such as adjusted compensation
land the increased outlays by the Treasury, the expenditures which
iare directly or indirectly attributable to war and the national defense
compose over 80 per cent of total Federal expenditures. The amounts
•spent by this Government in aid of agricultiu-e and business, for
science, education, better roads, and other constructive efforts are
insignificant when compared with outlays due to war and national
'defense. This will be the inevitable situation as long as .war is the
method of settling international disputes. These facts should be
faced squarely by those who clamor for reduced Government expenditures and at the same time oppose the world's efforts to devise
i^ational methods for dealing with international questions.
THE PUBLIC DEBT

Debt retirements
The total gross debt was reduced during the fiscal year by
:$734,619,101 and on June 30, 1925, stood at $20,516,193,888. This
reduction was effected by (1) $466,538,114 on account of the sinking
•fund and other debt retirements chargeable against ordinary receipts;
(2) by application of the entire surplus of $250,505,238; and (3) by
:$17,575,749 on account of reduction in the general-fund balance
below the balance on June 30, 1924. This reduction, in debt has
resulted in a saving of interest of about $30,000,000 annually.




22

REPORT ON T H E FINANCES

The following table shows the debt reduction and the means b y
which it was effected in the past fiscal year in comparison with pre-^
vious years:
Retirements
chargeable
against
ordinary
receipts

Fiscal year

1920....
1921
1922
1923
1924
1925

Retirements
through surplus

$79,000,000
422,000,000
423,000,000
403,000, 000
458,000,000
467,000, 000

$212,000,000
87,000,000
314,000,000
310,000,000
605,000,000
250,000,000

2, 252, 000, Opo

1,678,000,000

_

Total

Retirements
through reductions in the
net balance in
general fund

Total debt
reductions

$894, 000,000
1 187,000,000
277,000,000
1 99, 000,000
136,000, 000
18,000,000

$1,185,000,000
* 322,000,000
1,014,000,000
614,000,000
1,099,000,000
735,000,000
4,969,000,000

1,039,000,000

1 Debt issues resulting in increase in net balance in general fund.
2 Includes a reduction of $4,842,000 on account of a revised estimate of the amount of fractional currency
outstanding.
,

For the period from 1920 to 1925 as a whole it will be noted that
surplus and reduction in the balance, in the general fund together
accounted for about 55 per cent of the total debt reduction, whereas
in the past fiscal year these two items accounted for only about 35
per cent of the reduction taking place in that year. The balance in
the general fund was reduced only slightly in the past year in comparison with previous years. As pointed out in my last annual
report, there can be no further material reduction in this fund for a
number of years to^come for it is as low now as the Treasury's activities will permit. The fund may be expected to fluctuate around
$200,000,000—a very small figure in comparison with the magnitude
.of Treasury operations. Surplus was not as large an item in the last
fiscal year as in the two previous years. This was due in the main
to the reduction in taxes brought about in the revenue act of 1924.
Debt retirements chargeable against ordinary receip^ts constituted
65 per cent of the total debt reduction in 1925 as against 45 per cent
of the total reduction in debt for the six-year period, 1920 to 1925^
as a whole. The following table shows for each fiscal year from 1920
to 1925, inclusive, the debt retirements chargeable against ordinary
receipts classified by the source of the funds:
Debt retirements chargeable against ordinary receipts
[In thousands of dollars]

Fiscal year

Sinking
fund

Purchases
from
foreign
repayments

$261,100
276,046
284, 019
295,987
306, 308

1920
1921
1922
1923
1924
1925
Total

$72,670
73,939
64,838
32,140
38, 509
386

1,423,460

282,482




Received
from foreign governments
under
debt settlements

Received
for estate
taxes

Purchases'
from
franchise Forfeitures,
gifts, etc.
tax
receipts

Totali

$68,753
110,879
158, 794

$3,141
26,349
21,085
6,568
8,897
48

$2,922
60, 725
60, 333
10,815
3,635
794

$13
169
393
555
93
208

$78,746
422, 282
422, 695
402, 850
458, 000
466, 538

338, 426

66,088

139, 224

1,431

2, 251, 111

SECRETARY OE THE TREASURY

23

, The sinking fund was fixed originally at 2J^ per cent of the war
debt not represented by foreign loans, about $10,000,000,000, plus
a secondary credit of the annual interest which would have been paid
on bonds retired for the sinking fund if they had been left outstanding.
Retirements from the sinking fund were $261,000,000 in 1921, and
in the last fiscal year they were $306,000,000. The fund can be'used
either for the purchase of securities at an average cost of not over
parj or for the retirement of securities at maturity. The Treasury
is in the market for its securities when they are below par. When
they exceed par, purchases are not made in the market, but the fund
is applied to the retirement of maturing or called securities. Since
we have maturing or callable securities in an amount far in excess
of the sinking fund's capacity to absorb, the fund will always be
operative no matter how much over par Government bonds may be
quoted, and there will be no driving up of prices by forced purchases.
The second largest source of funds from ordinary receipts used in
debt retirements comes from foreign repayments. These repayments
have a double aspect. Under the funding agreement with Great
Britain, the scheme of which has been followed in the. other debtfunding agreements made to date, the debtor has the right to pay
principal and interest in United States securities issued since April
6, 1917, at par and accrued interest. This means that it is worth
while for the debtor to use our securities as counters if they can be
acquired below par. The British debt alone calls for the expenditure of $161,000,000 a year for 10 years and over $180,000,000
yearly thereafter, and there is always in the market this buying power
which will tend to prevent the price of our securities going below
par. The debt-funding agreements are, therefore, a market stabilizer, •
as well as a method of reducing the national debt.
The sinking fund and the provision of law that repayments of
principal of foreign loans shall be used to retire debt are a part of
the contract between the United States and the holders of its obligations. This combined buying power of 400 to 500 million a year
alone provides for the gradual and orderly retirement of the debt
and is pretty good assurance that Government bonds will not again
seriously depreciate.
While the soldiers' bonus does not reduce the debt, it has the
effect of postponing the date at which a portion of the Government's
obligations must be met. The bonus is 20-year endownaent insurance, and the amount paid into the bonus fund is the annual premium
which under actuarial tables is necessary to provide the probable
maturity values of the certificates upon the expiration of 20 years,
or upon earlier death of the veteran.




24

REPORT ON T H E FINANCES

, This premium is a part of governmental expenditures. I t is
required that the premium be invested in United States securities.
Instead of taking cash and going into the market and buying our
own securities, the Treasury adopted the policy of selling to the
fund Government obligations in a form to meet satisfactorily the
actuarial requirements of the fund. Upon the maturity of most of
the certificates, say, in 1944, there will be in the fund something
like two and one-haK or three billion dollars of Government securities, the sale of which to the fund during the 20-year period gives
the Treasury money to retire a like amount of securities in the hands
of the public. In 1944, then, it will be necessary for the Treasury
to refund the securities in the fund by the sale of new securities to
the public to provide the cash necessary to pay the maturity value
of the certificates. So, the bonus will in effect postpone during the
20-year period the necessity for meeting two and one-half or three
billion dollars of Government obligations until 1944.
Debt retirement and taxes
I t has been suggested that the amount available this year for tax
reduction can be increased by retiring our public debt more slowly
and thereby giving to the taxpayers, in decreased taxes, the benefits
of smaller annual repayments over a longer period of years. The
argument is made that as the foreign debtor nations are allowed
62 years in which to pay their debts to this country the same leniency
should be extended to the American taxpayer in paying off our domestic obhgations. An examination of the facts, however, wiU show
that no real benefit will accrue to the Nation as a whole or to the taxpayers individually by adopting such a course.
The pubhc debt to-day is about $20,000,000,000. Interest and sinking fund payments during the fiscal year ended June 30, 1925, for
which provision was made in the Budget, amounted to $1,188,000,000,
of which $882,000,000 went for interest and $306,000,000 for the sinkmg
fund. At the present rate of payment, as provided by the sinking
fund, the so-called domestic debt, representing money speht by America
in the war and amounting at the present time to $8,712,700,000, will
have been discharged by 1944. The interest to be paid during the
intervening period will be $4,042,000,000, which with the principal
of $8,712,700,000 will make a total payment of $12,754,700,000 to be
made in the next 18J^ years.
.
Suppose, however, that the period of repayment of the domestic
debt is extended from 18 J^ to 62 years from date, as has been pro-




SECRETARY OF THE TREASURY

25

posed. The total interest charges during the longer period at the
same rate of interest would amount to $16,126,500,000 as compared
with $4,042,000,000 under the present arrangement, and the total
amount of principal and interest to be paid over a period of 62 years
would be $24,839,200,000 instead of $12,754,700,000.
I t is clear, therefore, that no real saving would accrue to the American
people by extending unnecessarily the time of debt payment. On the
other hand, such a pohcy would, if adopted, prove both financially
inexpedient and economically unsound. Congress undoubtedly has
the legal authority to repudiate the contract for the sinking fund and
the arrangement for applying foreign repayments to the extinguishment of the debt. Under the circumstances, however, it would seem
that the moral authority to take such action is extremely questionable, and certainly to do so would be to reverse the historic policy of
this Government.
That pohcy, since the beginning of the Government, has consisted
in balancing the budget or keeping expenditures within receipts, and
prompt extinguishment of the public debt. I t has not always been
easy to discharge the debts which this Government has been obhged
to contract. But determined efforts have been made, even under
circumstances when debt payment was a far greater burden than at
present; and those eft'orts have been successful, as a short review of
former achievements will show.
In this connection it may be interesting to quote from the report
of the Secretary of the Treasury for 1844. In reviewing the history
of the public debt he said:
On the 1st of January, 1790, the foreign debt,- viz, to France, Spain, and to
foreign officers, including interest for the year 1790, amounted to the sum of
$12,556,871.28, and the domestic debt to $60,219,022.44, together amounting to
the sum of $72,775,893.72. The population of the United States then numbered
3,927,827 souls, according to the census of that year. * * *
On the 1st of January, 1816, the public debt had increased to the sum of
$127,334,933.74. This great increase was caused by the War of 1812, terminated
by the treaty of Ghent of 1815, for the expenditures of which the taxes had been
increased; the loans obtained amounted to the sum of $70,478,209.73, and
Treasury notes were issued to the sum of $36,680,794, together making
$107,159,003.73.
On the 1st of January, 1820, the public debt had been reduced to the sum of
$91,015,566.15. The population, as numbered by the census of that year,
consisted of 9,638,131 souls.
On the 1st of January, 1830, the public debt was reduced to the sum of $48,565,406.50. The population numbered 12,866,020 souls, according to the census of
that year.
On the 7th of December, 1835, the President's message announced that "All
the remains of the public debt have been redeemed, or money has been placed
in deposit for this purpose whenever the creditors choose to receive it. All the
other pecuniary engagements have been promptly and honorably fulfilled, and




26

REPORT ON THE FINANCES

there will be a balance in the Treasury at the close of the present year of about
$19,000,000." On the 6th February, 1836, the commissioners of the sinking
fund, and the report of the Secretary of the Treasury, stated that all the debt
had been paid, except the sum of $37,513.05—which consisted of claims for
services and supplies during the Revolutionary War, $27,437.96; Treasury notes
issued during the War of 1812, $5,755; Mississippi stock issued under the act of
3d.March, 1815, $4,320.09; and they renewed their, recommendation that the
sinking fund and the commissioners of the sinking fund be discontinued. It
may be presumed that those Treasury notes issued in the War of 1812, and not
presented for payment, have been destroyed, and that of the other sums so long
due and unclaimed only a small part (if any) will ever be presented for payment.
From the 31st December, 1789, to the 31st December, 1835, the United States
paid for interest on the public debt the sum of $157,629,950.69, and for the
principal the sum of $257,452,083.24, together making the sum of $415,082,033.93.

* * *
The moral power, courage, and capabilities by which a Nation in its infancy,
loaded with a debt of the Revolutionary War of such magnitude, harassed by
Indian wars, and encumbered by another debt of. the War of 1812, terminated in
1815, discharged those debts faithfully—exhibiting to a gazing and astonished
world the example of a Nation which had exerted such energies, of a Government without a national debt, with an overflowing Treasury, and without direct
taxes, internal duties, and excises—are to be looked for in the genius of the Government) the integrity of those who have been elected to administer it, the
good sense, honesty, and enterprise of the citizens, and, lastly, though not least,
in.the beneficent smiles of an all-wise and protecting Providence.

Again in 1884 the Secretary of the Treasury, after stating that the
public debt incurred for the Civil War had been reduced from its
peak of $2,756,431,571.43 in 1865 to $1,408,482,948.69 in 1884, or a
reduction of $1,347,948,622.74 in 19 years, said:
In the management of its debt the United States has been an example to the
world. Nothing has so much surprised European statesmen as the fact that
immediately after the termination of one of the most expensive, and in some
respects exhaustive, wars that have ever been carried on the United States
should have commenced the payment of its debt and continued its reduction
through all reverses until nearly one-half of it has been paid; that reduction in
the rate of interest has kept pace with the reduction of the principal; that
within a period of 19 years the debt, which it was feared would be a heavy and
never-ending burden upon the people, has been so managed as to be no longer
burdensome. It is true that all this has been effected by heavy taxes, but it
is]also true that these taxes have neither checked enterprise nor retarded growth.




SECRETARY OF THE TREASURY

27

Composition of the public debt
The distribution of public debt maturities is shown in the following table for the present year in comparison with previous years:
Interest-bearing debt, distributed by maturities, and total gross debt August 31, 1919,
to October 31, 1925 i
[Millions of dollars]
M a t u r i n g w i t h i n five years

Within
o n e year

Aug. 31,1919.
Apr. 30, 1921.
J u n e 30, 1921.
June 30, 1922.
June 30,1923.
June 30, 1924.
June 30, 1925.
Oct. 31, 1925 2

One
year t o
two
years

Two
years t o
•five
years

4,201
2,820
2,699
4,336
1,393
2,328
- 1 , 505
1,938

Date

572
4,494
366
1,432
927
1,182
766

5,045
4,209
425
2,044
2,647
4,817
3, 567
3,480

.

Maturing after
five
years

Total
interestbearing
debt

9,246
17,103
7,602
16,158
7,618 . 16,119
6,746
15,965
5,473 : 16,535
8,072
12,9] 0
6,254
13,957
6,184
13. 957

26,349
23,760
23,737
22,711
22,008
20,982
20,211
20,141

Total
within
five
years

Total
gross
debt

26, 594
23,994
23, 976
22,964
22, 350
21, 251
20, 516
20,406

1 Exclusive of interest-bearing obligations redeemable at the pleasure of the Government but not maturing within the period covered.
•3 From Preliminary Statement of the Public Debt, Oct. 31,1925.

The debt maturing in five years declined about $1,800,000,000
from June 30, 1924, to June 30, 1925, while the long-dated debt
increased over $1,000,000,000. This reduction in the short-dated
debt was greater than for any previous fiscal year, and the hig:h
level of 1924 was reduced in 1925 to a figure lower than for any previous postwar year except 1923. The composition of the short-dated
debt and source of changes in it are brought out in more detail in
the following table:
Short-dated debt, August 31, 1919, to October 31, 1925^
[Millions of dollars]

Date

A u g . 31, 1919
A p r . 30, 1921
J u n e 30, 1921
J u n e 30, 1922
J u n e 30,1923
J u n e 30, 1924
J u n e 30, 1925
•Oct 31 1925 2

Total
shortThird
d a t e d d e b t L i b e r t y Victory T r e a s u r y
(maturing
loan
notes
notes
bonds
within
five years)
9,246
7,602
7,618
6,746
5,473
8,072
6,254
6^184

4,113
4,069
3,914
1,991
2,997
2,885
2,803

311
2,247
4,104
3,736
2,404
2,404

Pittman
Loan and
Act and
T r e a s u r y 4 per
tax certifispecial cer(war)
cent
cates of
tificates ot savings loan of
indebtedi n d e b t e d - securities
1925
ness
ness
3,938
2,548
2,451
1,755
1,031
808
579
596

263
272
249
74

931
713
694
679
337
413
386
381

118

» Exclusive of debt on which interest has ceased and interest-bearing obligations redeemable at the
pleasure of the Government but not maturing within the period covered.
ti, 2 From Preliminary Statement of the Public Debt, Oct. 31, 1925,

It will be noted that the big increase in the short-dated debt from
1923 to 1924 was due to the fact that the maturity of the third
Liberty loan came within the five-year period. If we should exclude



28

REPORT ON T H E FINANCES

the third Liberty loan bonds the short-dated debt would now aggregate about $3,400,000,000. A significant factor regarding the change
in the structure of the debt is the gradual reduction of certificates of
indebtedness since 1919, and also the reduction of Treasury notes
since 1923. The greatest decline in the notes took place in the last
fiscal year. The significance of the reduction in these items of debt
is discussed more fully on pages 44 to 48.
The reduction in the short-dated debt during the past fiscal year
from about $8,000,000,000 to $6,200,000,000 was brought about
through debt retirements and through the refunding operations for
the past year. The type and. amounts of securities issued by the
Treasury during the fiscal year 1925 are shown in the following table:
Securities issued during the fiscal year 1925
Interest
rate

Series

Date of
issue

Term

Certificates of indebtedness:
Per cent
TS-1925
1 year
Adjusted service series
4 —do
TD-1925.
3 9 months.,
TJ-1926-..
3 1 year
Treasury notes: Adjusted
4 6 years
service series.
Treasury bonds: 1944-1954.

4

Due

Amount
allotted

Sept. 15, 1925.
$391,369, 500
50,0.00, Q O
p
Jan. 1,1926
_.
219, 46^; 000
Dec. 15, 1925
. .
124, 247, 000
June 15, 1926
50, 000, 000
Redeemable after Jan. 1,
1926; payable Jan. 1,
1930.
/Dec. 15; 1924. [Redeemable on and after 1,047,088,500
20-30 years •\Mar. 16,19251 1. Dec. 15, 1944; payable
Dec 15,1954.
Sept.
Jan.
Mar.
June
Jan.

15,1924
1,1925
16,1925
15,1925
1,1925

1 Additional issue.

The long-term bonds issued on December 15, 1924, were the first
offering of this character since the issue of the Treasury 434 P^r cent
bonds of 1947-1952 in October, 1922. The offering made in March,
1925, was identical in every way with that of December, 1924. Eor
further details regarding these issues as well as the offering of certificates and notes see pages 31 to 34.
The aggregate par amount of securities floated during the year was$1,882,167,000, at an average annual interest rate of 3.557 per cent..
The reduction in annual interest charges on the new issues as compared with the annual interest charges on the same amount at the
average rate of the issues matured during the year was $16,730,000..
The average interest rate paid on the entire debt declined from 4.21.
per cent to 4.14 per cent.
The average interest rate on the entire debt reached its highest
point in 1921 and 1922. The following table shows the average ratepaid on the entire debt during each fiscal year from 1919 to 1925:
Fiscal year
1919
1920
1921..-.
1922

-




4.10
4.19
4.29
4.29

Per cent .

Fiscal year

Per cent
1923
1924
1925

-

:

....

4.22
4.21
4.14

29

SECRETARY OF THE TREASURY

The relatively low average rate in 1919 was due to the fact that
patriotism played a large part in the flotation of Government securities during the war, but since 1919 the Treasury has had to float its
rsecurities on a competitive basis and at the prevailing market rate.
This led to an increase in the average rate in 1920 and 1921, years of
relatively high rates, and to a decline since 1922. The causes back
of these changes in the average rate are more fully discussed on pages
40 to 44.
Managing the public debt
The management of the public debt is a much bigger job than the
mere utiUzing of funds for debt retirement as they become available
for that purpose. In each year since the war the volume of maturities has been considerably larger than the arnount that could be
retired, so that refunding operations have been and will continue
t o be necessary in the future. The extent of the Treasury financing
t h a t will be necessary for the next five or six years is indicated by
t h e table below, showing the public debt maturities to ]S[ovember 1,
1930:
Public debt maturities to November 1, 1930 ^
[Amounts as of Oct. 31, 1925]

D a t e of m a t u r i t y

Certificates
of i n d e b t e d ness 2

D e c . 15,'l925_..
$179,462,000
J a n . 1, 1926.
. . 3 40,400,000
M a r . 15, 1926
J u n e 15, 1926
376,183, 000
Sept. 15, 1926
D e c . 15-31, 1926
J a n u a r y - S e p t e m b e r , 1927 _ _
M a r . 15, 1927..
October-December, 1927...
D e c . 15, 1927...
J a n u a r y - N o v e m b e r , 1928 _
S e p t . 15, 1928..
D u r i n g D e c e m b e r , 1928
J a n . 1-July 15, 1929
J a n . 1, 1 9 3 0 . . .
Total...

596, 045, 000

Notes and
bonds 2

Treasury
(war) savings
certificates
(including
interest)

$299, 659, 900
4 $13, 564, 596
615, 677, 900
• 414,922,300
2 1, 800, 655
2 96, 304, 037
668, 201, 400
2 14,867, 577
335, 779, 900
2 132, 369, 073
5 2, 802, 473,150
2 24, 029,195
2 96, 774, 603
3 50, 000, 000
5, 206, 714, 550

379, 709, 736

•
Total

$479,121,900
53, 964, 596
615, 677, 900
376,183, 000
414, 922, 300
1, 800, 655
96, 304, 037
668, 201,400
14,867, 577
355, 779, 900
132, 369, 073
2, 802, 473,150
24,029,195
96, 774, 603
50, 000, 000

Cumulative
total

$479,121, 900
533, 086,496
1,148, 764, 396
1, 524,947, 396
1, 939, 869, 696
1, 941, 670, 351
2, 037, 974, 388
2, 706,175, 788
2, 721, 043, 365
3,076, 823, 265
3, 209,192, 338
6, Oil, 665, 488
6, 035, 694, 683
6,132,469, 2S6
6,182, 469, 286

6,182, 469, 286

1 Exclusive of debt on which interest has ceased amounting to $13,735,430; second Liberty loan bonds,
amounting to $3,104,548,450, which are redeemable but do not mature within the period; other interestbearing obligations redeemable at the pleasure of the Government, but not maturing within the period
•covered and not called for redemption, amounting to $686,859,850; and thrift and Treasury savings stamps,
unclassified sales, etc., amounting to $3,820,265.
2 From Prehminary Statement of the Pubhc Debt, Oct. 31, 1925.
3 Adjusted service series.
* From Preliminary Statement of the Public Debt, Oct. 31, 1925, plus accrued interest as shown on the
Statement of the Public Debt, Aug. 31, 1925.
6 Third Liberty loan.

Provision for the orderly retirement of the debt has been provided for and, as has been explained in previous annual reports, the
maturities have been so arranged as to fall conveniently on tax-payment dates, so the principal problems now confronting the Treasury




80

REPORT ON T H E FINANCES

in handling the debt are those relating to the type of securities t h a t
will be issued to meet maturing obligations which can not be retired.
The Treasury knows with substantial accuracy how much of the d e b t
should be retired each year and how much must be refunded, with a
varying margin of possible retirement or refunding. I t also knows
how much of the debt ultimately should go into long-term bonds,
and how much should be turned over in short-term obligations. T h e
determination of the character of the securities to be issued depends,
then, on the maturities which are desirable from the standpoint of
the Treasury, and upon the cost of the different types of financing.
This fixes the character of the issue, whether certificates of one year
or less, notes up to five years, or bonds up to any maturity, or a combination of any of these issues. The situation back of the issue of
long-term bonds on December 15, 1924, furnishes a good concrete
illustration of the factors that determine the type of financing t h a t
the Treasury will undertake. Both the money market and the debt
structure were important considerations at this time.
On December 15, 1924, the Treasury had maturing something over
$400,000,000 of securities. With the funds on hand it would need
about $200,000,000 of cash to meet December maturities and to
carry the Government through until the March financing. On February 2, $118,000,000 of circulation 4^s were called for payment,
and in March maturities were substantially $1,000,000,000. Thislatter amount was so large that it might have proved embarrassing.
The financial condition of the country can not be foreseen with certainty three months ahead. The Treasury wanted to reduce thisamount to the point where it,could easily be handled, even, if conditions were unsatisfactory. I t could have borrowed $500,000,000'
extra in December and had it in bank to meet the March maturities
when they came in. But since they were quoted above par and
coidd not be redeemed at the market, it would have been necessary
to wait for their maturity on March 15 and in the meantime t h e
Treasury would have had to carry the money with loss of interest.
I t was obviously desirable to obtain exchanges of a large block of
March maturities in December, three months before they were due.
The time appeared appropriate for the sale of a long-term Government bond, and the issue of a reasonable amount of them was proper
from the general standpoint of our debt structure. The amount of
the issue for cash was fix:ed at $200,000,000, or thereabouts, all we
needed until March, and the privilege was given to all holders of
March maturities to exchange their securities, then quoted at about
100 J^, for the new bonds, par for par. At the samis time a similar
privilege was extended to holders of the third Liberty's, which
mature in 1928, since it was the belief of the Treasury that future
financing would be simplified according to the extent to which this




SECRETARY OF T H E TRJEASURY

31

maturity could be whittled down. The price of the bond was par
and the rate was slightly above the market, so that it was felt that
the bond should sell at about 1003^ after it was issued. This concession in price was necessary in order to attract exchanges. The
cash subscriptions were large, but allotments were limited to $225,000,000, and over $500,000,000 of exchanges were received. As a
result of this issue of 4 per cent for 434 V^^ ^^^^ securities, there
was an actual saving in interest to the Government of $1,389,231
during the remaining life of the securities exchanged, the March
maturities were cut to a reasonable figure, and debt maturities were
placed in better shape.
Treasury bonds of 1944-^ 954
The Treasury announced this offering on December 3, 1924, under
authority of the act of Congress approved September 24, 1917, as
amended. Four per cent 20-30 year bonds were offered at par and
accrued interest, dated December 15, 1924, maturihg December 15,
1954, and redeemable in whole or in part, at par, and accrued interest, at the option of the United States, on and after December 15,
1944. The bonds were issued in both coupon and registered form
in denominations of $100 and upward. The offering was for $200,000,000, or thereabouts, with the right reserved to the Secretary of
the Treasury to allot additional bonds to the extent that third Liberty loan 434 per cent bonds. Treasury notes, or Treasury certificates
of indebtedness which matured March 15, 1925, were tendered in
payment.
The offering met with a quick response, and inasmuch as the Treasury wished to confine allotments on cash subscriptions to $200,000,000,
or thereabouts, the subscription books on the primary offering were
closed at the close of business on December 4, 1924. Cash subscriptions amounted to $1,460,530,550, of which $224,513,500 was allotted on the following basis: On subscriptions of $1,000 and under,
allotments were made in full; on subscriptions in excess of $1,000
but not exceeding $10,000, 65 per cent was allotted, with a minimum
of $1,000. Subscriptions in excess of $10,000 were declined.
I n addition to the cash subscriptions, the exchange subscriptions
which closed on December 20, 1924, amounted to $532,420,300, making total subscriptions for this offering of Treasury bonds amount to
$1,992,950,950. All exchange subscriptions were allotted in full, so
t h a t the total allotments on the offering aggregated $756,933,800.
This was the first offering of long-term Government bonds since
the issue of the Treasury 4Ji per cent bonds of 1947-1952 in October,
1922; and it afforded a particularly favorable opportunity to holders
of third Liberty loan bonds to acquire a long-term Government bond




32

REPORT O S THE FINANCES
Or

on attractive terms in place of their third Liberty loan bonds, which
mature in September, 1928, and which are now a short-term secm*ity.
I t also reduced to more manageable proportions the somewhat heavy
financing otherwise necessary in March, 1925, and in September,
192^8.
An additional issue of 4 per cent Treasury bonds of 1944-1954 was
announced on March 5, 1925. These bonds were issued at 1003^
and accrued interest from December 15, 1924, and are identical in all
respects and freely interchangeable with the bonds of the original
issue. Treasury notes and Treasury certificates of indebtedness
which matured March 15, 1925, were accepted at par in part payment for the Treasury bonds. Subscriptions, which closed at the
close of business on March 10, 1925, aggregated $382,326,400, and
allotments were made to the amount of $290,154,700. Cash and
exchange subscriptions were allotted on the same basis. Subscriptions not exceeding $10,000 for any one subscriber were allotted in
full; subscriptions over $10,000 but not exceeding $50,000 were allotted 80 per cent, but not less than $10,000 on any one Subscription;
subscriptions over $50,000 but not exceeding $100,000, 70 per cent,
but not less than $40,000 on any one subscription; subscriptions over
$100,000 but not exceeding $500,000, 60 per cent, but not less than
$70,000 on any one subscription; subscriptions over $500,000 but not
exceeding $1,000,000, 50 per cent, but not less than $300,000 on any
one subscription; and subscriptions over $1,000,000, 40 per cent, but
not less than $500,000 on any one subscription.
This additional issue of Treasury bonds of 1944-1954 and an
offering of nine-months' Treasury certificates of indebtedness on the
same day, the combined offering of which was for $450,000,000, or
thereabouts, were intended, with the balances already on hand and
the March tax receipts, to pay about $560,000,000 of Treasury certificates of indebtedness and Treasury notes which matured March 16,
1925, to meet over $300,000,000 of interest payments on the public
debt in March, April, and May, and to provide for all other cash requirements of the Treasury until June.
Further details concerning the Treasury bonds of 1944-1954 will
be found in the official texts of the offerings. Department Circulars
No. 349 and 354, attached as Exhibits 33 and 34, pages 243 and
245, and in the letter of the Secretary of the Treasury, dated December 3, 1924, to the banking institutions of the country, attached as
Exhibit 35, page 247.
Certificates of indebtedness and Treasury notes
The first offering of certificates of indebtedness since my last annual report was on March 16, 1925. On that date about $560,000,000
of Treasury certificates of indebtedness and Treasury notes became




SECRETARY OF THE TREASURY

33

payable, and there were also public debt interest payments due in
March, April, and May. In order to meet these obligations and all
other cash requirements of the Treasury until June, in so far as they
might be in excess of the balances already on hand and the-March
tax receipts, the Treasury announced a combined offering of $450,000,000 of nine-months' Treasury certificates and 4 per cent Treasury
bonds of 1944-1954. Details of the additional issue of Treasury
bonds will be found on page 32.
The certificates of indebtedness, maturing December 15, 1925,
bore 3 per cent interest, and Treasmry notes and certificates of indebt-r
ness maturing March 15, 1925, were received in exchange for the.new
certificates. All subscriptions closed at the Vclose of business: on
March 10, 1925, with a total of $365,230,000. The allotments
amounted to $219,462,000. Exchange subscriptions were allotted in
full, as were also the cash subscriptions in amounts not .exceedirig
$1,000 for any one subscriber; subscriptions in amounts over $1,000
were allotted on a graduated scale.
The next issue of certificates of indebtedness, bearing 3 per cent
interest, was dated June 15, 1925, and matures June 15, 1926. The
offering was for $125,000^000, or thereabouts, and the Treasury
accepted in payment for the new certificates Treasury notes which
matured June 15, 1925. Subscriptions closed at the close of business
on June 10, 1925, and aggregated $470,254,000, of which $124,247,000
was allotted. Cash and exchange subscriptions in amounts not
exceeding $1,000 were allotted in full and allotments on subscriptions
in amounts over $1,000 were made on a graduated scale. The proceeds of this offering of certificates, together with the June tax
receipts and the cash on hand, were intended to pay about $4£)0>^
000,000 of Treasury notes which fell due on June 15,1925, and to meet
all further cash requirements of the Treasury up to September.
^ On September 8, 1925, the Treasury announced an offering of ninerhonths' 334 per cent Treasury certificates dated September 15,1925,
and maturmg June 15,1926. The offering which was for $250,000,000,
or thereabouts, was intended, with the balances already on hand and
the September tax receipts, to cover all cash requirements of the
Treasury until December. Certificates which matured September
15 were accepted in exchange for the new certificates. The subscription books closed at the close of business on September 10, 1925,
with subscriptions aggregating $568,155,500, ojF which $251,936,000
was allotted. All subscriptions in amounts not exceeding $1,000 were
allotted in fuU, while allotments on subscriptions in amounts over
$1,000 were made on a graduated scale.
In addition to the foregoing offerings of certificates of indebtedness
to the public, the Treasury issued on January 1,1925, $100,000,000 of
special certificates and Treasury notes to the adjusted service certifi60501—FI 1925t



3

34

REPORT ON THE FINANCES

cate fund. This operation was in accordance with the adjusted
compensation act which provides for an appropriation on the 1st of
January of each year to the adjusted service certificate fund of an
amount based upon the American Experience Table of Mortality
which, if k(Bpt invested at 4 per cent compoimded annually, would be
suflBLcient to pay the face value of the adjusted service certificates
upon their maturity in 20 years or upon prior death of the veteran;
the Secretary of the Treasury is authorized to invest and reinvest
the moneys in the fund, in interest-bearing obligations of the United
States and to sell'those obligations for the purposes of the fund.
Inasmuch as the Government securities outstanding on January 1,
1925, did* not meet the exact requirements of the fund and would
probably be unsatisfactory for sale when the adjusted service certificates mature some 20 years later, the only feasible way of handling
the investment was to sell securities direct to the fund. The Secretary
of the Treasury, therefore^ invested $50,000,00(1^ in five-year special
Treasury notes dated January 1, 1925, and payable January 1, 1930,
and $50,000,000 in special Treasury certificates of• indebtedness
payable one year from date. Both securities bear interest at 4 per
cent per annum payable annually or on the prior redemption of the
security.
.
Further details concerning. Treasury certificates of indebtedness
will be found.in Exhibits 1 to 29, pages 170 to 237; and in Tables
A, C, and E, pages 448, 458, and 463.
The official circulars announcing the offerings are printed as
Exhibits 39 to 41, pages 251 to 255,
The aggregate amount of certificates of indebtedness issued from
the beginning of the war to October 31, 1925, was $62,980,128,809,
of which $21,422,925,500 were loan certificates, $15,568,291,500 were
sold in anticipation of income and profits taxes, $25,938,911,809
were special issues, and $50,000,000 were certificates issued to the
adjusted service certificate fund. The following table gives the details regarding the unmatured certificates of indebtedness and Treasury notes outstanding on October 31, 1925:
Unmatured certificates of indebtedness and Treasury notes outstanding October 31,
1925
Detail
, Certificates of indebtedness
i
Series TD-1925
Series TJ-1926
Series TJ2-1926
Adjusted service series.
Treasury notes:
Series B-1925
Series A-1926
Series B-1926
Series A-1927
Series B-1927..Adjusted service series.




Interest
Per cent
3
3
4

4^

m
4

Date of issue

Due

Mar.
June
Sept.
Jan.

16,1925 Dec. 15, 1925
15,1925 June 1.5, 1926
15,1925
do
1,1925 Jan. 1, 1926

June
Mar.
Aug.
Jan.
May
Jan.

15,1922
15,1922
1,1922
15,1923
15,1923
1,1925

Dec. 15,1925
|
Mar. 15, 1926
Sept. 15, 1926
Dec. 15,1927...
Mar. 15, 1927
After Jan. 1,1926; on Jan. 1,1930.

Amount
outstanding

$179,462,000
124,247,000
251.936,000
40,400,000
299,659,900
615. 677,900
414,922,300
355, 779,900
668,201, 400
50, 000, 000

SECRETARY OF THE TREASURY

35

Redemption of the 4^s of 1 9 2 5 \
In the report for 1924 reference was made to thQ,call, on October 15,.
1924, of the 4 per cent loan of 1925 for redemption and.payment on
February 2, 1925..
This loan was originally issued under authority of the act of Congress approved July 14, 1870, as amended by the act approved January 20, 1871, and by the act of Congress approved January 14,
1875, for the purpose of acquiring gold to replenish the gold reserve
held for the redemption of United Statesnotes. , The loan was issued
in two parts, $62,315,400 in February, 1895, as payment for 3,500,000
ounces of gold, and $100,000,000 in January,. 189.6, as a popular loan,
subscriptions being payable in gold. The total amount issued ac*
cordingly was $162,315,400.
•
.., ,
During the fiscal years 1902 and 1903, $43,825,500 par amount of
the bonds of this loan were purchased for the sinking fund from accumulation of public funds in the Treasury. The bonds so purchased
were retired. No further reductions in the amount thereafter outstanding, $118, 489, 900, were made prior to the time they were called
for redemption and payment. Of the bonds still outstanding on the
date of the call, $77,537,050 were lodged with the Treasurer of the
United States as security for the circulating notes of national banks.
Of this amount $61,471,450 were redeemed and the proceeds deposited
for the retirement of an equal amount of national-bank notes outstanding. For the remainder ($16,065,600) 2 per cent bonds were
substituted and the circulation continued. There reriiained outstanding on September 30, 1925, $1,173,150 of these bonds, the
holders of which had not yet presented them for payment, notwithstanding interest on such bonds ceased on February 2, 1925.
With the retirement of this loan the only United States bonds remaining outstanding bearing the circulation privilege are the 2 per
cent bonds, as follows:
Consols of 1930
_ Panamas of 1916-1936__.
/ ^^
^as of 1918-1938
- " .

Total United States 2 per cent bonds

.

$599, 724, 050
48, 954, 180
25,947,400
674, 625, 630

Termination of conversion privilege—Four per cent Liberty bonds
The first Liberty loan, issued on June 15, 1917, bore interest at
33^^ per cent. The second Liberty loan, issued on November 15,
1917, bore interest at 4 per cent, and thereupon the privilege of converting outstanding first 33^^s into 4 per cent bonds arose. A total of
$568,318,450 first 33^^s were thereafter converted into first 4's.
The third Liberty loan, issued on May 9, 1918, bore interest at
434 per cent, and with its issuance there arose the privilege of con-




36

REPORT ON T H E FINANCES

verting into 434 per cent bonds any outstanding 4 per cent bonds of the
first or second Liberty loans. The right to convert such 4 per cent
bonds into 434 P^r cent bonds terminated on November 9, 1918.
The Congress, however, by section 5 of the Victory Liberty loan act,
approved March 3,1919, conferred upon the Secretary of the Treasury
authority to extend the privilege of converting 4 per cent bonds into
434 per cent bonds, with further authority to terminate such privilege
at any time on six months^ public notice. In accordance with such
authority, the Secretary, on March 7, 1919, extended the conversion
privilege, and this privilege continued in effect until finally withdrawn
on June 30, 1925, pursuant to the provisions of Department Circular
No. 351, dated December 29, 1924 (see Exhibit 38, page 250).
The following statement shows the issues and conversions of first
4's and second 4's and the amounts outstanding on June 30, 1925:
First 4's
Original issue upon conversion of first BJ^'s, Nov. 15, 1917, to
May 15, 1918
_
Converted into first 434's to June 30, 1925
Redeemed to June 30, 1 9 2 5 - . .
._._
Outstanding June 30, 1925

$568, 318, 450
547, 555, 050
15, 520, 050

.

5, 243, 350

Second 4's
Original issue against full paid subscriptions Nov. 15, 1917
Converted into second 4M's to June 30, 1925.
Redeemed to June 30, 1925

$3, 807, 865, 000
3, 707, 691, 950
79, 081, 450

.-.

Outstanding June 30, 1925.

.

21, 091, 600

Under existing law no further rights of converting Liberty bonds
can arise.
TREASURY FINANCING AND THE CREDIT SITUATION

During the last fiscal year the Treasury carried out its financing
operations at materially lower interest rates than for any previous
year since the war. The average rate of interest borne by certificates
of indebtedness offered in the fiscal year 1925 was only 2.9 per cent.
This was 1 per cent less than the average rate on new issues during
the fiscal year 1924 and about 2% per cent less than the average for
the fiscal year 1921. The following table shows the average rate of
interest paid on certificates of indebtedness each fiscal year from
1921 to 1925:
Year

1921
1922
1923




Average
rate
Percent
5.7
4.5
4.1

Year

1924
1925....

Average
rate
Per cent
39
2.9

37

SECRETARY OF THE TREASURY

This decline in the average rates paid on its new issues of securities did not come about through any arbitrary decisions on the p a r t
of the Treasury to pay lower interest rates, but as a result of a
general decline in market rates due to money and credit conditions.
The decline in the rates paid by the Treasury in the fiscal year 1925
compared with 1924 and its relation to the decrease in general money
rates is brought out in the following table:
Rate on
4 to 6
months*
paper
(prime)

Date

Yields on New issues of certificates of inRate on
certificates
debtedness
bankers' Rate on of indebtaccept- call loans edness—
ances
4 to 6
Rate Maturity
months

1924
January
February.- .'.
March
April
May
June -July
August
September
October
November
December

--...

4.88
4.78
4.62
4.62
4.19
3.97
3.52
3.25
3.12
3.12
3.22
3.55

4.12
4.06
3.94
3.98
3.41
2.44
2.06
2.10
2.22
2.18
2.34
2.92

4.55
4.31
4.00
4.25
3.25
2.25
2.05
2.00
2.06
2.40
2.38
3.70

3.75.
3.52
3.70
3.48
2.95

3.62 .
3.62
3.91
3.95
3.88
3.88
3.90
3.97
4.28
4.38

3.00
3.12
3.25
3.17
3.18
3.19
3.19
3.19
3.38
3.44

3.12
3.56
3.81
4.00
3.81
3.94
4.15
4.19
4.50
4.81

2.83
2.81
2.95
2.88
2.93
3.02
3.21
3.33
3.29
3,66

......

Mar. 15,1925

" " 2 H Dec. 15,1924
2! 13
2.26
2.35 " " 2 % Sept. 15vl926
2.62
2.87
2.30

1925
January
February.March
April
May.
June
July
August
September
October

-

-..^

-•

-

......
......

Dec. 15,1925June. 15,1926

Do.

I t will be noted that the rates paid on new issues of certificates of
indebtedness fell sharply from 4 per cent on the offering of March,
1924, to 2 ^ per cent on the issue of June, 1924, corresponding to the
rapid decline in general money rates that occurred through these
three months. The September issue was also at 2 ^ per cent, b u t
the remaining issues have been at 3 .per cent or slightly above, and
this, the table also indicates, was due to the tightening of general
money rates since the middle of 1924.
The low point to which interest rates dropped in 1924 was the
lowest since before the war. The average rate on prime four to six
months' commercial paper was 3.12 per cent in, September and
October, 1924, compared with 3.88 per cent in August, 1922, the
lowest average rate for any month in that year; the average rate on
call loans was 2 per cent in August, 1924, and 3.62 per cent in June,
1922. These were the quoted rates, but in 1924 loans were made
at call below the quoted rate. The average yield on certificates
of indebtedness reached the low point of 2.13 per cent in July,
1924, compared with 3.08 per cent in August, 1922. Since the




38

REPORT ON T H E FINANCES

middle of 1924 money rates have increased rather sharply all along
the line, but they are still only slightly above the low "point
of 1922. Since 1922 was a year of abundant credit and easy money
rates as a result of .the heavy credit liquidation following the severe
business recession of 1920 and 1921, the unusually easy money and
credit conditions which have prevailed since the middle of 1924 are
all the more remarkable.
A comparison of short-time money rates with long-time interest
rates in August, 1922, 1924, and 1925, reveals the same situation
of unusual ease in the money market of the past year. • This comparison is given in the following table:
1922
1924
1925
(August) (August) (August)
Yield on 60 high-grade bonds . .
Four to six months' commercial paper (prime)
Call loan rate
_
_
_
Yield on four to six months* certificates of indebtedness

4.81
3.88
3.74
3.08

4.80
• 3.25
2.00
2.26

4.74
3.97
4.19
3.33

The decline in short-time interest rates to the low point reached
in July, 1924, was due largely to continued heavy gold imports and
the decline in business activity which began in May, 1923, and
lasted with only slight interruptions until July, 1924. Since the
indebtedness of the member banks to the Federal reserve banks
was very low, practically all of this gold received from abroad was
available to meet increased currency demands or for credit expansion. As business activity was declining, there was no demand
for increased currency, so that practically all of the imported gold
was used in the further extension of credit. From June, 1923, to
July, 1924, the volume of credit of reporting member banks increased
from $16,500,000,000 to $17,000,000,000., Most of this increase
was in collateral loans an4 investments. Commercial loans increased slightly, but this increase did not represent an increased
demand for accommodation on the part of business, because business activity was declining at this time; rather, it meant that, business was able to utilize a larger volume of loans at the greatly reduced rates at which the}^ were offered by the banks as a result of
the inpouring gold. While member bank credit was thus increasing, reserve bank creciit declined from $1,114,000,000 in June, 1923,
to $859,000,000 in June, 1924, so that the expansion of member
bank credit came about entirely as a result of the gold imports.
The large decline in the volume of gold imports in the latter half
of 1924, which changed into net exports in December, together with
the revival in business activity which began in July, 1924, brought
about the upward movement in interest rates which took place in
the latter half of 1924 and which has continued with some irregularity
until the present time..



39

SECRETARY OF THE TREASURY

From July, 1924, to January, 1925, the physical volume of production in basic industries increased' 34 per cent and in the latter
month was as high as it was at the peak of 1923, when the output
of goods measured in physical units had attained a higher level
than had ever been reached before. The physical volume of output
declined from January to June, 1925, but the decline was not nearly
so great as in 1924, and at the present time industrial output is on a
high level and business in an unusually prosperous condition.
Although the volume of gold imports fell off considerably in the
latter half of 1924 and.the import balance was turned into an export
balance in December which continued until July, 1925, total loans
and investments of member banks continued to increase. From
July, 1924, to July, 1925, loans and investments of reporting member
banks increased from $17,200,000,000 to $18,700,000,000. .All but
$200,000,000 of this increase took, place, however, fi-om July to
December, 1924, before the gold exports set in. Most of the-increase
was in collateral loans and investments. Commercial loans of
reporting member banks increased only about $100,000,000 from
July, 1924, to July, 1925, while totalloans and investments increased
$1,500,000,000 during the same period. However, commercial loans
were about $200,000,000 higher in March, 1925, than in July, 1925,
and in recent months they have again increased over the July figure.
The expansion in member bank credit from July, 1924, to Jnly,
1925, was accompanied by an increase in Federal reserve bank
credit in contrast to the preceding year, when .reserve, bank credit
declined. The increaise, in reserve bank credit for the period was
about $200,00.0,000.: These changes in reserve bank ^and member
bank credit are shown in the following table:
......
Reporting member bank credit
. (millions of dollars) ,
Date (end of month)

June........
July...
August.:...
September..
October.-..
November..
December..

1924

Total .
loans and Invest,; investments
ments

Collateral
loans

Reserve bank credit
(millions of dollars)

Government
Commer- Total curitiesse- I Redisand
cial
earning fbankers:
counts
loans
assets
accept' ahces

17,056
.17,252
' 17,67r
18,194
18,315
18, 527
• 18,599

4,906
4,880
5,133
5,411
5,551.
,5, 612
5,531

4,329
4,431
4, 570
4, 663
4,547
4,721
4,863

7,821
7,941
7,868
8,120
8,217
8,194
8,205

859
825
915
983
1,024
1,187
1,249

490
531
613
"716
802
, 938
935

294
302
267
'222
249
314

.18, 54.0
18,538
18,704
18, 716
18, 683
18,892
18, 723
•18,'918
19,272
19,345

5,489
5,396
5,498
5,484'
5, 503
5,516
5,506
5,443
,5,440
•5; 443

4,888
4,949
4,978
5, 079
5,141
5,347
5, 204
5; 302
.5,471
5,472

8,163
8,193'
8,228
8,163
8,039
8,029
8,013
8,173
8,361
8,430

1,130
1,087
•1,028^
1.064
1,127
1,021
1,126
1,257
• 1,250

715
•696
687
628
652
615'
553
549
624
660

274
434
400
400
412
512
468
577
633
590

1925
January
February
-.
March.
AprilMay...
June.'
:
July
August-'......
September.
October. _ . . . .




40

REPORT GIST T H E FINANCES

This increased use of reserve bank credit was due in part to the
decline in the volume of gold imports in the latter part of .1924 and
to the increase in the volume of gold exports in December, 1924, and
the first half of 1925. Member banks borrowed from the Federal
reserve banks to increase their reserve balances to support their growing volume of deposits, to provide for increased currency demands,
and to meet the demand for gold for foreign shipments.
Although member banks have continued to increase the total
amount of credit extended during the past year, and even though
this has led to some increase in reserve bank credit, there are no
reasons to believe that any demands for accommodation on, the part
of business or industry that are likely to arise in the near future can
not be met by the banking system without credit strain. Due to
their pohcy of allowing no idle funds to accumulate, the member
banks have little or no surplus reserves to use as a basis for further
credit extension. But a large part of their funds is invested in
collateral loans and securities which can be° liquidated or sold in
case of an increased demand for credit on the part of business, so
that a considerable increase in business activity can be financed
without drawing heavily on reserve bank credit.
The relation of Treasury rates to the marlcet
The yields on outstanding Government securities move in harmony
with prevailing interest rates and are controlled by the same general
forces. This is illustrated in diagram 11,, page 41, which compares
the yield on four to six months^ certificates of indebtedness with the
rate on four to six months' prime commercial paper and the rate on
bankers' acceptances.
Due to their high degree of security and wide market, certificates of' indebtedness yield a lower rate than commercial paper
of the same maturity, and even a slightly lower rate in general
than bankers' acceptances which have shorter maturities. It will
be noted from the diagram that at the beginning of 1921 the spread
between the commercial paper rate and the yield on certificates of
indebtedness was much greater than it has been since that time.
This was doubtless due to the frozen condition of commercial credits
and the uncertainties of business at that time. Since about the
beginning of 1922 the commercial paper rate and the yield on certificates of indebtedness have not only fiuctuated sympathetically
but have maintained a fairly definite relationship to one another.
On the other hand, there has been an increasing spread between the
yield on Government bonds and the yield on other bonds as represented by an index of the yield of 60 high-grade bonds with long
maturities^ This is shown in diagram 12, page 41. At present the
yield on the Government bonds is more than one-half of 1 per



41

SECRETARY OF THE TREASURY

cent below the yield on the 60 high-grade bonds. This is, of course,
the more normal situation, because Government bonds are usually
considered the highest grade of investment and yield a shade less
than any other type of bond. In 1921 the tremendous volume of
1

r
1/

r

:

—

V \
A

COMME ^CIAL PAPER - . PRIME

V
JKERS ACCEPTAN

\

>

•

• ^ ^

/
/

C.orl'.

"'•VKJ

\j}
I

-

1

'

^

\

•

"

i

•

r

•"•:f^

1

•

DIAGRAM 11.—Rates on bankers' acceptances and 4-6 months* prime commercial paper, and yield on
4-6 months' certificates of indebtedness, from 1920 to 1925

iS2

0

1921

4922

1923

19.2

4

iQ'2.^.

DIAGRAM 12.—Yield on 60 high-grade bonds (index by Standard Statistics Corporation) and on United
states Government 4K per cent bonds, from 1920 to 1925
60501—FI 1925t



4

42

REPORT ON THE FINANCES

Government bonds outstanding had served to depress the price.
The Treasury's financial policy and the gradual reduction of the
debt have helped to remedy that condition.
The increased investments of banks during this period of easy
money and their preference for Government securities have also been
important factors in accounting for the spread between the yields of
Government bonds and other high-grade bonds.
I t is evident that the yield on outstanding Treasury obligations is
controlled by general market forces and that their relationship to
the rate structure is likewise fixed by their relative security and the
general credit situation. I t should also be evident that the Treasury
must fix its rates on new issues of securities in harmony with market
rates, and, since new issues of securities are more like outstanding
Government obligations than any other type of securities on the
market, the yields on these outstanding securities are the best indicators as to the rate which should be attached to new issues.
* The factors which the Treasury must take into consideration in
floating a new issue of securities are practically the same as those
which must be considered by an investment banker in floating new
issues for his clients. All Government offerings are made on a strict
investment basis. The Treasury always aims to sell its securities
at the lowest possible interest rate consistent with their successful
distribution among investors, and, with this in view, it always gives
close attention and consideration to the market quotations on outstanding securities and to prevailing money-market conditions in connection with the determining of the amount and terms of these issues.
The Treasury wishes to secure the lowest rate that the market will
offer, but if Treasury certificates and notes should be offered at
rates of interest lower than market conditions warrant they would
not prove sufficiently attractive to investors, and the funds necessary
to carry on the Government's activities would not be available.
The Government can no longer appeal to the public to purchase
its securities at lower-than-market rates on the ground of patriotism;
its securities must be placed on the market on a purely competitive
basis*
The closeness with which the Treasury has adjusted the rates on
its new issues to conditions prevailing in the money market is indicated in the table on page 37. This table shows that the Treasury
took full advantage in 1924 and 1925 of the easy money conditions
prevailing during this time. The rates on the new issues, however,
are not strictly comparable to the yield on the outstanding four to
six months' certificates of indebtedness which are shown in this table,
due to the fact that the new issues during this period all had longer
maturities than the outstanding certificates. | | Diagram 13 on page 43




43

SECRETARY OF THE TREASURY

compares the rates on new issues of six months' certificates of
indebtedness with the yield on outstanding four to six months' certificates from 1921 to the present time. I t is seen that the rates on
the issues correspond very closely to the yield on the outstanding
certificates throughout this period. They do not correspond exactly,
however, due partly to the fact that the yield on the outstanding
certificates is an average yield for the month, whereas the rate on the
new issue is adjusted to the market situation on a given day within
the month and because the average maturity of the outstanding four
to^six months' certificates is not six months, as is the case with the
new issues shown in the diagram. Market rates, furthermore, are
frequently influenced by reason of a relatively small floating supply
of the securities and by a special demand for a limited amount of the
particular issue.

0
X
5

^ X

\. ^
V\

-.

V,
V

4?

•

5^
_X\ 4
/^
/ x^y ~ \ i V
^

^ T T

>»" X

3

.TIBIiiB OH C . J p i.'^
1
BAf^ B S 0]SrK53"W SB? JUHS OF C " ! 'fi\

\.'A r
^-V

vv\
• V jA
\ r

2.

/S>ea

r1
/ ^

±
en

i9ai

loaa

492.3,

.. AS.a^ii

i.9 2.5

DIAGRAM 13.—Yield on 4-6 months' certificates of indebtedness and rates of interest on new issues, from
1921 to 1925

In actually fixing the rate on the new issue, in other words, the
Treasury does not adjust it to the average yield of its outstanding
certificates, but it selects a security having the same maturity that
the new issue is expected to have and adjusts the rate of the new
issue to the yield rate of that security, taking account at the same
time of other factors in the market. There is a large free market in
New York of some $20,000,000,000 of Government securities maturing anywhere from 1 month to 30 years. I t is hardly possible to pick
a maturity for a security in that period at which its probable price is
not already indicated by the yield on an outstanding issue. The
following table shows for several different dates on which certificates




44

REPORT ON T H E FINANCES

of indebtedness were issued, the yield on outstanding securities having
a similar maturity to the new issue, and the rate attached to the
new issue:

Maturity

Date issued

Sept. 16,1923
Dec. 15, 1923
Mar. 15, 1924
Mar. 16, 1925
Sept. 15, 1925

Mar. 15, 1924
June 16, 1924
Mar. 16, 1925
Dec. 16, 1925
June 15, 1926

Rate

Per cent
4.25
4.00
4.00
3.00
3.25

Yield on
outstanding issues
of same
maturity
Per cent
4.13
3.90
3.96
3.07
3.21

On Septeniber 15, 1925, it will be noted from the table that nine
months' certificates were issued. The yield on that date on outstanding certificates with a nine months' maturity was 3.21 per cent
and the rate attached to the new issue was 3.25 per cent. This is
very shghtly above the market rate on the outstanding certificates.
I n the case of the issue on March 16, 1925, however, the rate fixed
for the new issue was slightly below that of the outstanding
securities of the same maturity. In practically all of these cases the,
yield on the outstanding securities of the same maturities as the
new issues were inconvenient rates to adopt, and it was necessary
to select in each case the nearest convenient fractional rate.
Influence of debt payments on the money marlcet
Although the Treasury must adjust the rate on its new issues of
securities to market rates, the financial operations of the Treasury
are large enough in volume to be an important influence in the market.
One influence noted is purely temporary and occurs on quarterly tax
payment dates when the Treasury makes interest payments, redeems
matm-ing obligations, and often issues new securities. Frequently
payments exceed receipts on the tax day, making it necessary to
borrow temporarily from the Federal reserve bank on a special
securities of indebtedness in anticipation of the tax receipts which it
takes several days to collect. This places reserve bank funds temporarily on the market and results in easier money rates. Rates
tighten up again, however, when the loan is repaid, upon the collection of the tax checks.
There is a more permanent influence, however. Since collections
do not come in evenly throughout the year, and because the Treasury
has heavy interest payments to make during the intervals between
certain tax-payment dates and also has maturing obligations and
other disbursements in excess of collections on certain tax dates, it
issues at such times new securities, usually short-term securities, in
anticipation of tax collections and to meet maturing obligations.




45

SECRETARY OF T H E TREASURY

These certificates and notes are sold to investors, consisting largely
of banks and other financial institutions, so that they absorb funds
and tend to tighten money rates. Since 1919, however, the Treasury
has been paying its debts and the retirement of outstanding obligations has been greatly in excess of new issues, so that the net effect
of the Treasury's operations during this period has been a tendency
to bring about lower rather than higher money rates, Standing^at
•MrLI^lONS OP
• I>OL.I^A.RS

,
25,000

24, OOP

\

Vr-v
^v^

2.3,000

22,,G00

1
T O T A I i B T E U B S T - B l lAiUNG DBB P

•v^^

1
^

N

2.1,000-

K

^ ^

2.0,000
rOKY AND' •: ?HEAS=URX ^ O T E S

•• ••<! •••0 •

•4*, 0 0 0

J

,'•* • •*

9

3,000

\

0

V-

^o^^\

.^"

«•
•••
•

2,000
l40A>

1,000

O E R T I P I C A P E S OFINBI BTBBNBSS- ;
J
"'"•^„„*-'
]

--.«-«-

i9a3

±32.5

DIAGRAM 14.—Victory and Treasury notes, loan and tax certificates of indebtedness, and total interestbearing debt, from 1920 to 1925

$25,234,000,000 on June 30, 1919, the interest-bearing debt had been,
reduced to $20,211,000,000 on June 30, 1925. This represents an.
average annual payment of over $837,000,000, which has been collected from taxpayers all over the country and turned over to the^
holders of Government securities. The effect of this policy of debt
repayment on money rates is more apparent when it is considered
that the princij)al reduction in the debt has taken place through the^



46

/REPORT OlSr THE FUSTANCES

retirement of certificates of indebtedness and other short-term
securities which are largely held by banks and financial institutions.
Diagram 14 on page 45 shows the outstanding notes, certificates of
indebtedness, and total interest-bearing debt, by months, from
January, 1920, to the present time.
,
For the period as a whole certificates of indebtedness were reduced
by about $2,500,000,000 and notes by about $2,000,000,000. When
this is compared to other factoids in the credit situation during this
period, it will be seen that it was large enough in magnitude to be a
very important factor in bringing about the general decline in shorttime money rates which took place during these years.
The repayment of om* public debt involves the collection of taxes
from all taxpayers and turning over the proceeds to the holders of
Government securities. Whether or not this process has any effect
upon savings and the short and long time interest rate depends in
some measure upon how the taxes are collected and upon the type of
securities retired.
If a large proportion of the taxes with which debt retirements are
met is collected from persons who would normally save the amounts
paid in taxes, the volume of investment funds will not be materially
affected. For, in this case, funds intended for investment by such
taxpayers will simply be transferred from them to the holders of
Government securities to be reinvested by the latter instead of the
former. On the other hand, whenever tax collections result in a
reduction of personal expenditures the result is a net increase in the
supply of capital with a consequent reduction in general interest
rates. In either case, however, there may be some influence upon the
rate structure—that is, the relation between short-time and long-time
rates.
When, for example, the Government pays off the short-term debt,
such as certificates of indebtedness and Treasury notes, a large proportion of which is held by financial institutions, it releases bank
credit for other uses, and money rates tend to decline. As the process goes on the surplus funds may gradually be employed in the longterm investment market, but the first effect of such payments is on
short-time rates. Diagram 15 on page 47 shows the movement in
money rates compared with long-time interest rates as reflected by an
index of bond yields from 1920 to the present time. There has been
not only a general downward trend of all interest rates as shown in
this diagram but short-time rates have declined much more than
long-time interest rates and the spread between the two types of
rates has been unusually wide during the past year or more.
Debt liquidation, of course, has been only one influence responsible
for the changes in money rates. The other principal factors are
gold imports, changes in the credit requirements of business, and the
growing volume of savings. Taking the period as «a whole, gold



47

SECEETAEY OF THE TEEASUBY

imports have perhaps been the most important factor in the situation.
From 1921 to the end of 1924 this country received $1,500,000,000 of
gold from abroad. This was the basis of k substantial expansion in
member bank credit, and together with the decreased demand for
currency is the chief cause of the decline in reserve bank credit,
which amounted to about $2,000,000,000. Thus the member banks
increased their total loans and investments by about $3,000,000,000
at the same time they were paying their debts to the Federal reserve
banks, which had assxuned such large proportions during 1919 and
1920.

1920

192.1

1922

1923

19 2 4

±923

DIAGRAM 16.—Rates on bankers' acceptances and 4-6. months' prime commercial paper, and yield on
60 high-grade bonds (index by Standard Statistics Corporation), from 1920 to 1925

Since the total loans of member banks were only slightly higher at
the end of 1924 than at the beginning of 1921, the $3,000,000,000
increase in member bank credit represented in the main an increase
in their investments. The accompanying table shows the credit
situation at the beginning of 1921 and at the close of 1924:
[In millions of dollars]
Dec. 29,
1920
Total loans of member banks..
Total investments of member b a n k s . . .
...
Total loans and investments of member banks
Earning assets of reserve banks
..
1 AaoIDeo.30.




19,745
6,143
26,888
» 3,263

Dec.Sfi,
1924
20,166
8,861
29,027
1,249

48

REPORT GIST T H E FI^STANCES

Although the volume of loans at the end of 1924 was only slightly
higher than at the beginning of 1921, as is shown in this table, the
proportion of commercial loans to the total was considerably less at
the latter date than at the former, as is indicated by the reports of
member banks in large cities. The volume of commercial loans of
these reporting member banks was about a billion dollars less at the
end of 1924 than at the beginning of 1921. This represents a decreased demand for accommodation on the part of business and means
that funds which were tied up in commercial and industrial operations,
at the beginning of 1921 were at the end of 1924 available for other
uses.
The heavy volume of savings during recent years, both corporate
and individual, has also been a material factor in the decline in general
interest rates. Large savings are reflected in the growing volume of
savings deposits, the growth of life insurance, increasing corporate
surpluses, and the demand for investment securities.
I t is clearly demonstrable, however, that the Government's program of debt retirement has been a material factor in bringing about
the improved credit conditions which now prevail, and the improvement in credit conditions in turn is a prime factor in the present
prosperous condition of industry.
OBLIGATIONS OF FOREIGN GOVERNMENTS.

The total principal amount of obhgations of foreign governments
originally held by the Treasury was $10,338,058,352.20. Such obligations were acquired by the United States (1) under the authority
of the Liberty bond acts which authorized the Secretary of the
Treasury, with the approval of the President, to estabhsh credits
in favor of foreign governments engaged in war with enemies of the
United States against which cash advances were made for the purpose
in general of enabling those governments to meet commitments
made in the United States in connection with the prosecution of the
war; (2) under the authority of the act of July 9, 1918, which authorized the President, through the head of any executive department, to
sell any surplus war supplies on such terms as the head of such department deemed expedient; (3) under the authority of the act of February
25, 1919, appropriating $100,000,000 as a revolving fund for the participation by the United States, in the discretion of the President,
in the furnishing of foodstuffs and other urgent supphes to certain
populations in Europe and countries contiguous thereto; and (4)
under the authority of the act of March 30, 1920-, which authorized
the United States Grain Corporation, with the approval of the
Secretary of the Treasury, to sell or dispose of the flour in its possession, not to exceed 5,000,000 barrels, at such prices and on such terms
or conditions as might be necessary to relieve populations in the
countries of Europe or countries contiguous thereto, suffering for



SECRETARY OF T H E TREASURY

49

the want of food. There is set out below a statement showing by
countries the total principal amount of such obhgations received by
the United States and payments on account of principal thereof:
Total principal
Total principal
a m o u n t of
a m o u n t of
obligations
T o t a l principal
obligations
received for
a m o u n t of oblireceived for
gations received surplus supplies relief supplies
furnished o n
under Liberty
sold o n credit
credit u n d e r
b o n d acts
u n d e r a c t of acts of F e b . 25,
J u l y 9, 1918 1919, a n d M a r .
30,-1920

Country

Payments on
account of
principal of
obligations so
received

.

Armenia
$11,959,917.49
Austrial
24,055,708.92
Belgium
^ 1 . . . . . $349,214,467.89 $29,872,732.54
$2,057, 630. 37
Cuba
10,000, 000. 00
10,000,000.00
61,974, 041.10
20, 604; 302. 49
C z e c h o s l o v a k i a . . .".
9,301,327.44
Esthonia . .
» 12, 213, 377.88
1,785,767. 72
Fihla]ld....-...v.—
8,281,926.17
France
2, 997,477,800. 00 407,341,145. 01
64,302,901. 29
G r e a t B r i t a i n . . ^ 4,277,000,000. 00
202,181,641. 66
Greece..
, 15,000,000.00
Hungary - J J
1,685,835.61
164,852.94
Italy
_
1,648,034,050.90
L a t v i a ••
2, 521,869. 32
2,'610,417. 82
Liberia
26,000. 00
Lithuania ^ . .
•.
822,136. 07
4,159,491.96
82,513.86
Nicaragua .
166, 604.14
75,984, 263. 73
Poland
83,682,708. 66
Rumania
25,000,000.00
12,922, 675. 42
1,794,180.48
Russia
. . ."
187,729, 750. 00
406,082.30
• 4,465,465.07
26, 780,465. 56
24,978, 020. 99
720, 600.16
Yugoslavia
Total

9,598, 236, 575. 45 598,869,010. 71

140,952, 766. 04 281,304,320.66

T o t a l n e t principal a m o u n t of
obligations received b y Treas*
ury pursuant to
acts m e n t i o n e d

$11,959,917. 49
24,055,708.92
377,029,670.06
91,879,671.03
13,999,145. 60
' 8, 281,926.17
3,340,516,043. 72
4,074, 81,8,358.44
15,000,000.00
1,685,835. 61
1,647,869,197.96
5,132, 287.14
26,000. 00
4,981,628.03
84,090. 28
159,666,972.39
36,128,494.94
192,601,297.37
51,037,886. 39
10,056, 754, 031. 54

Funding agreement allows credit of $1,932,923.45 on account of loss of cargo on ship sunk by mine.

Debt-funding agreements executed pursuant to.the authority of
the act of February 9, 1922, as amended by the act of February 28,
1923, and as further amended by the act of January 21, 1925, providing for the funding of $6,383,411,668.98, principal amount of obligations of foreign governments held by the Treasury, have been concluded with the Governments of Belgium, Czechoslovakia, Esthonia,
Finland, Great Britain, Hungary, Italy, Latvia, Lithuania, and Poland.
There is set out below a statement showing by countries the principal amount of obligations funded and the amount of accrued interest
thereon included in the principal of the debt as funded:
Country

Belgium
...
Czechoslovakia..
Esthonia
Finland..
Great B r i t a i n . . .
Hungary
Italy.....
Latvia
Lithuania
Poland
...:.
Total-

Date of
agreement

Aug.
Oct.
Oct.
May
June
Apr.
Nov.
Sept.
Sept.
Nov.

18,1925
13,1925
28,1925
h 1923
19.1923
25.1924
14.1925
24,1925
22,1924
14,1924

Principal of
obligations
funded
$377, 029,
570. 06
91,879,671. 03
2 12,066,
222.15
926.17
8, 281,
4,074,818, 358. 44
1,685,835. 61
1,647,869.197.96
5,132,287.14
4,981,628. 03
159,666,972. 39
6,383,411,668.98

Accrued interest
funded

$40, 750,429.
$417,780. 000.00
1 23,120,328.
115,000, 000. 00
1, 763, 777.
13,830,000.00
718, 073.
9,000,000.00
525,181,641.
000,000.00
4, 600,
253,164.
1,939,000.00
394,130,802.
000,000.00
|2,042,
642, 712.
5,775,000.00
1,048,371.
6,030,000.00
18,893, 027.
178,560,000.00
1,006,502,331.02 7,389,914,000. 00

»Includes certain open account claims.
2 Credit of $1,932,923.45 allowed for loss of cargo on ship sunk by mine deducted.




Funded bonds
received or to
be receiv^ed

50

REPORT ON T H E FINANCES

As the funding agreements with Belgium, Czechoslovakia, Esthonia,
Latvia, and Italy have not yet been ratified by Congress or by the
respective Governments, the delivery of the new bonds provided for in""x
the funding agreements has not yet been effected. For brief reports
regarding the negotiations and execution of the funding agreements,
see the Annual Reports of the World War Foreign Debt Commission
contained in the Annual Eeports of the Secretary of the Treasury for
the fiscal years ended June 30, 1922, 1923, and 1924, and pages 51
to 67 of this report.
According to the terms of the debt-funding agreements the debtor
government, at its option and upon not less than 30 days^ advance
notice to the United States, may make any payment of principal or
interest due in respect to its funded bonds in any obligations of the
United States issued after April 6, 1917, such obligations to be taken
at par and accrued interest to the date of payment. Of the $47,005,511.80 principal payments received under the debt-funding agreements up to November 15, 1925, only $996,235.42 was paid in cash.
There is; set out below a statement of the principal payments arranged by countries:
Country

In United States
obligations

Cash

Principal
Belgium
Finland
Hungary
Great Britain. _.
Lithuania..—.^

_
.

Total...

$875,839.30
45,000.00
9,672.50
35,723. 62
30,000.00
996,236.42

Total

Interest

$44,860

$160.00

45,742,700

221,676. 38

46,787,550

221,726.38

$876,839.30
90,000.00
9,672.60
46,000,000.00
30,000.00
47,005,611.80

Of the $345,253,532.11 interest payments received under the debtfunding agreements up to November 15, 1925, $51,150,790.32 was
paid in cash. The Governments of Hungary and Lithuania have
taken advantage of their option to fund in bonds one-half of the interest falling due during the first five years of the debt-funding period.
The interest payments funded by these two Governments aggregate
$88,780.50. There is set out below a statement of the interest payments arranged by countries:
In United States obligations
Country

Funded

Cash

Total
Principal

Belgium
Finland
Hungary
Great Britain
Lithuania
Poland
Total -




$43,655. 50
45,225.00
88,780.60

Interest

$192,667. 78
516, 999. 28
44, 208. 83
49, 761,339. 43
135, 675. 00
600,000.00

$154,750

$560.72

292,482, 600

1,376,060. 67

$192,667.78
672, 300.00
87, 764:33
343,620,000.00
180, 900.00
500, 000.00

61,150,790.32

292,637,350

1,376,611.29.

346,263,632.11

SECRETARY OF THE TREASURY

51

For a detailed statement of the principal amount of the obligations
of foreign governments held on November 15, 1925, and the interest
accrued and unpaid thereon up to the last interest payment date
on or prior to November 15, 1925, see Exhibit 49, page 265 of this
report.
Statements of the payments made by foreign governinents on account of principal and interest appear as Exhibits 50 and 51, pages
266 and 267 of this report.
WORLD WAR FOREIGN DEBT COMMISSION

The present members of the World War Foreign Debt Commission are:
Andrew W. Mellon, Secretary of the Treasury) chairman.
Frank B. Kellogg, Secretary of State.
Herbert Hoover, Secretary of Commerce.
Reed Smoot, United States Senator.
Theodore E. Burton, Member of the House of Representatives.
Charles R.. Crisp, Member of the House of Representatives.
Richard Olney, formerly Member of the House of Representatives.
Edward N. Hurley, formerly chairman of the United States
Shipping Board.
Garrard B. Winston, Undersecretary of the Treasury, is secretary
of the commission.
The following changes have taken place in the membership of the
commission since the. publication of the last annual report:
Hon. Charles E. Hughes, formerly Secretary of State, resigned
on March 7, 1925. Hon. Frank B. Kellogg, who succeeded Mr.
Hughes as Secretary or State, was appointed by the President a
member of the commission on March 9, 1925, to fill the vacancy
caused by the resignation of Mr. Hughes. Hon. Eliot Wadsworth
resigned as Assistant Secretary of the Treasury April 1, 1925. His
resignation as secretary of the commission was accepted on August 6,
1925. Hon. Garrard B. Winston, Undersecretary of the Treasury,
was immediately appointed secretary to succeed Mr. Wadsworth.
The World War Foreign Debt Commission was created by the act
of Congress approved February 9, 1922. The original act is set out
in the Annual Report of the Secretary of the Treasury for the fiscal
year ended June 30, 1923, Exhibit 42, page 256. The commission
first consisted of five members, including the wSecretary of the Treasury,
who acted as chairman. Under the provisions of the original act the
commission was authorized to refund or convert into bonds and to
extend the time of payment of the principal or interest of obligations
of foreign governments held by the United States under such terms
as the commission deemed for the best interests of the United States.
TEe act provided, however, that no obligations should be extended



52

REPORT ON THE FINANCES

beyond June 15, 1947, that the rate of interest fixed in the funded
obhgations should not be less than 43^ per cent a year, and prohibited the exchange of obligations of one foreign government for
the obligations of another government and the cancellation of any
part of the indebtedness except through payment thereof.
The act of February 9, 1922, was amended by the act approved
February 28, 1923. This act approved the British settlement and
authorized the commission to make settlements with other governments upon such terms as the commission believed to be just, subject to the approval of Congress. The membership of the commission was increased from five to eight. A copy of the act of amendment
appears as Exhibit 44, page 261, of the Annual Report of the Secrer
tary of the Treasury for the fiscal year ended June 30, 1923.
In the original act the commission was created for three years.
By the act of Congress approved January 21, 1925, the commission was extended for a further period of two years from February 9,
1925. A copy of this act appears as Exhibit 52, page 268 of this
report.
There is set forth in the annual reports of the Secretary of the
Treaisury for the fiscal years ended June 30, 1922, 1923, and 1924, a
complete report of the activities of the commission up to November
1, 1924. The present report covers the period from November 1,
1924, up to November 15, 1925.
As stated in the last annual report, at the time of the creation
of the cornmission the United States held obligations of foreign
governments representing indebtedness incurred in connection with
the World War or arising out of conditions resulting therefrom
aggregating in principal amount approximately $10,102,000,000.
Debt-funding agreements have already been executed witli Belgium, Czechoslovakia, Esthonia, Finland, Great Britain, Hungary,
Italy, Latvia, Lithuania, and Poland. These settlements represent
$6,383,411,669, principal amount of the obhgations held by the
United States, or more than 63 per cent bf the total principal
amount of obligations held when the commission first took up its
work.
For a discussion of the total amount of advances made to foreign
governments by the United States, the obligations originally held,
the obligations extended or funded, and the payments on account of
principal and interest, see pages 48 to 51 of this report; also Exhibits
49, 50, 51, pages 265 to 267.
The commission convinced that there can be no permanent recovery
in Europe until the interallied, debts have been fairly adjusted has
been actively cooperating with the State Department during the
past year in its efforts to bring about negotiations and settlements of
the imfunded debts of foreign governments to the United States.




SECRETARY OF THE TREASURY

53

Not only is it essential to remove the debt question as a source of
international friction between governments, but it is perhaps more
important that the several debtor nations preserve the sanctity of their
respective obligations.
While the integrity of international obligations must be maintained it is axiomatic that no nation can be required to pay to another
government sums in excess of its capacity to pay. The commission
in its settlement with Great Britain, made on Jime 19, 1923, and in
subsequent negotiations or settlements has adhered to the principle
that the adjustments made with each government must be measured
by the ability of the particular government to put aside and transfer
to the United States the payments called for under the funding
agreement. Nor does the principle of capacity to pay require the
foreign debtor to pay to the full limit of its present or future capacity.
It must be permitted to preserve and improve its economic position,
to bring its budget into balance, and to place its finances and currency on a sound basis, and to maintain and, if possible, to improve
the standard of living of its citizens. No settlement which is
oppressive and retards the recovery and development of the foreign
debtor is to the best interests of the United States or of Europe.
The commission has accordingly permitted the foreign debtor to
repay the principal amount of its debt, irrespective of the maturity
or the character of the indebtedness, over a period of 62 years, or
nearly two generations. There is no government unable to make
the principal payments required on such a basis. It is felt that the
lack of capacity of a government to fund its debt on the same terms
as Great Britain can be readily met by appropriate adjustment or
modification of the rates of interest to be paid during the period of
repayment of principal. And in examining the capacity of payment, the commission looks not only at the immediate capacity,
but estimates, so far as it is able to do so, the future development
of the nation concerned. In applying these principles the commission, through its experts, through the foreign representatives of
the State and Commerce Departments, has assembled and studied
the economic and financial data available regarding each of the
foreign debtors. With this information before it, the commission
has been able to examine critically similar data presented by the
representatives of the several governments in their debt-settlement
negotiations and to estimate, with as reasonable accuracy as conditions permit, the capacity of payment of the particular government.
There has been considerable comment recently in the press regarding the attitude of the Government toward financing in this
country by foreign governments indebted to the United States
which have failed to fund or seriously to enter into negotiations for
the funding of their debt. It may be helpful briefly to review the




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REPORT ON T H E FINANCES

situation. Early in the administration of President Harding it
became apparent that one of the first problems to be dealt with was
that of protecting the billions of dollars of loans made by the United
States to foreign governments during the war. The cash advanced
and credits granted represented money borrowed by the United
States from its citizens. These sums must be repaid them, with
interest. I t was accordingly incumbent upon the Government fully
to inform itself regarding the finances of its foreign debtors and
particularly to be advised regarding their further borrowings from
the people of the United States. On May 25, 1921, President
Harding brought the situation to the attention of the leading bankers
of the country at a conference at the White House. As a result of
the conference the bankers agreed to inform the State Department
in advance regarding any undertaking involving loans to foreign
governments so that the State Department might have an opportunity to notify the bankers in case the interests of the Government'
demanded that it raise an objection to such financing in the American
market. In order to make the position of the administration more
fully understood, on March 3,1922, a statement was made to the press
by the State Department referring to the conference with President
Harding and again directing the attention of the bankers to the
desirability of cooperating with the Government in this regard.
I t is now customary for American bankers intending to float foreign
issues or to grant credits to foreign governments to consult the State
Department before final action is taken by them. Upon receipt of
advice from the bankers the State Department confers with the
Commerce and Treasury Departments and then notifies the bankers
of the attitude of the Government, whether or not objection to the
financing is interposed. In failing to raise any objection, however,
the Government does not pass upon the merits of the financing in
any way or assume respo'nsibilit}^^ of any sort in connection therewith. Failure to object indicates only that there is no national
interest involved in the transaction which makes the financing
fc>
objectionable from the. point of view of the United States.
Early in 1925, after much consideration, it was decided that it
was contrary to the best interests of the United States to permit
foreign governments which refused to adjust or make a reasonable
effort to adjust their debts to the United States to finance any portion
of their requirements in this country. States, municipalities, and
private enterprises within the country concerned were included in the
prohibition. Bankers consulting the State Department were notified
t h a t the Government objected to such financing. While the United
States was loath to exert pressure by this means on any foreign
government to settle its indebtedness, and while this country has




SECEETAEY OP THE TREASURY

55

every desire to see its surplus resources at work in the economic
reconstruction and development of countries abroad, national interest demands that our resources be not permitted to flow into countries which do not honor their obligations to the United States and
through the United States to its citizens.
There is set out below a detailed report by countries of the activities of the commission during the past year.
Armenia
There is no Armenian government in existence.
Austria
The time of payment of principal and interest of the Austrian
obligation held by this Government was extended until June 1, 1943,
and the lien of the obligation subordinated pursuant to special
authority conferred by joint resolution of Congress approved April 6,
1922. See Annual Report of the Secretary of the Treasury for,the
fiscal year ended June 30, 1923, page 33.
Belgium
The Belgian Government notified the American ambassador at
Brussels on June 7, 1925, that Belgium desired to open negotiations
in Washington for a settlement of its debt.
On August 10, 1925, a Belgian commission consisting of Baron de
Cartier de Marchienne, Belgian Ambassador to the United States;
Mr. Georges Theunis, formerly Prime Minister of Belgium; Monsieur
fimile Francqui, vice governor of the SociSte Gen^rale de Belgique;
and Monsieur Felicien Cattier, head of the Banque d^Outremer, appeared before the commission. The Belgian commission was accompanied by the following experts: Monsieur J. Boet, director of the
Ministry of Finance; Monsieur J. B. Vincent, administrator of the
Treasury; Monsieur J. Warland, director of the public debt; Monsieur
Andr^ Terlinden, director of the Societe Nationale de Credit h Tlndustrie. Monsieur Robert Silvercruys served as secretary general of
the commission.
Meetings of the commission with the Belgian commission were
held on August 10, 11, 12, 13, and 14, 1925. The meetings were then
adjourned to permit the chairman and Senator Smoot to submit the
terms of a tentative settlement to the President at Plymouth, Vt.
A final meeting was held on August 18, 1925, at which an agreement
was reached. The debt-funding agreement was signed on August
18, 1925, and was later approved by the President. I t will be submitted to Congress for its approval at its next session. A copy of
the agreement appears as Exhibit 63, page 288 of this report.




56

' REPORT ON T H E FINANCES

In the settlement arrived at the Belgian debt was divided into
two parts. It will be recalled that at the time of the Peace Conference
at Paris in 1919, Belgium advanced a claim for war damages as a prior
charge on reparations amounting to $1,000,000,000 in gold; that she
also claimed that Germany should be compelled to redeem in gold
6,200,000,000 paper marks forced into circulation in Belgium during
the period of German occupation, which marks had been redeemed
by the issuance.of Belgian francs by Belgium; and that she also
maintained that France, Great Britain, and the United States should
cancel her war debts, representing sums advanced prior to November
11, 1918. During a critical period of the Peace Conference, largely
at the instance of President Wilson, Belgium was induced to reduce
her claun for war damages from $1,000,000,000 to $500,000,000, and
to abandon her claim for 6,200,000,000 gold marks on the condition
that France, Great Britain, and the United States would forgive her
prearmistice debts and would look to Germany for repayment of the
sums due. On June 16, 1919, M. Clemenceau, President Wilson, and
Mr. Lloyd George signed a letter addressed to the Minister of Foreign
Affairs of Belgium stating that each would recommend to the appropriate governmental agency of his Government that upon delivery
to the reparation commission of bonds of Germany to be issued in
reimbursement of all sums which Belgium had borrowed from the
three Governments prior to the armistice, each Government would
accept a proportionate share of the bonds on account of Belgium's
obligation to repay the loans, which obligation was thereupon to be
canceled. This arrangement was incorporated in article 232 of the
treaty of Versailles. Although France and Great Britain ratified
the treaty, it was not ratified by the United States. The question
of the release of Belgium from her obligation to repay the prearmistice
advances was separately submitted to Congress by President Wilson
in a communication dated February 22, 1921, a few days before
the close of his administration, but never came up for consideration. Although the representatives of Belgium at the Peace
Conference understood that the action of President Wilson in negotiating the peace treaty and making the agreement was subject to
ratification, it was not anticipated that he would experience any
difl&culty in securing ratification in the United States. The man in
the street in Belgium always regarded the failure of the United States
to confirm the agreement of President Wilson as a breach of faith.
While'the commission was aware of the fact that no legal obligation rested upon the United States as a result of the assurances given
Belgium at the time of the Peace Conference, it nevertheless felt that
there continued a weighty moral obligation upon this Government,
since as a result of the action taken by President Wilson Belgium
had waived rights which otherwise it might have obtained. This




SECRETARY OF THE TREASURY

57

differentiated the prearmistice debt of Belgium from all other debts
due the United States from foreign countries.
The provisions of article 232 of the treaty of Versailles were not
carried out by Germany. The failure of Germany to fulfill its reparation obligations finally resulted in the adoption of the Dawes plan of
August, 1924. In an agreement of January 14, 1925, signed at Paris,
apportioning the Dawes plan receipts among the several countries
entitled to reparations it was provided that 5 per cent of the annual
payments by Germany available for reparations (first deducting
certain priorities, such as service of the German external loan of 1924,
army costs, and the like) was set apart to provide repayment of the
Belgian prearmistice debt. France and Great Britain agreed to
accept their proportion of the amounts to be received, and Belgium
has been relieved to this extent as a debtor of these two nations.
The portion of these receipts which would have been payable to the
United States if the treaty of Versailles had been ratified by this
Government is being paid to Belgium by reason of her prearmistice
debt to the UnitedStates and Belgium agreed to pay over such amounts
immediately to this country. The commission did not accept the
Belgian proposal that amounts to be received from Germany be substituted by Belgium for repayment of the prearmistice debt. The
commission, however, felt that under all the circumstances the United
States should not ask Belgium to repay more than the principal of
the prearmistice advances. A schedule of annual installment payments over a period of 62 years, without interest, the payments to be
a direct obligation of Belgium irrespective of receipt of payments
from Germany, was finally agreed upon by the two commissions. The
amount.of the annual installments increases until it reaches $2,900,000
in the sixth year. A schedule of the payments will be found in a
copy of the agreement. Exhibit 63, page 288 of this report. .
Repayment of the postarmistice debt, amounting as of June 15,
1925, including accrued interest, to $246,000,000, was arranged on
lines substantially similar to the settlements made with other
countries. A detailed statement of the calculation of this portion
of the debt is also set out in the agreement. Payments of principal
are spread;over a period of 62 years, with interest in arbitrarily fixed
amounts during the first 10 years, and interest at the rate of 3 ^ P^r
cent a year, thereafter.
After the preliminary periods the total payments to be made by
Belgium each year for the remaining 52 years of the debt funding
period will be approximately $12,700,000 a year. The adjustment
of the early payments on both the prearmistice and postarmistice
debts was made to bring the total annual payments within Belgium's
capacity and particularly to meet her present difficulties in obtaining
foreign exchange because of the unfavorable balance of her commodity



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REPORT ON T H E FINANCES

trade, the shrinkage in her income from foreign investments, and the
lack of other invisible items in amounts sufficient to offset, her unfavorable commodity trade balance, and further to aid her in her
efforts to balance her budget and place her currency on a sound
basis.
;
The statements issued to the press at the beginning and end of the
negotiations appear as Exhibits 61 and 62, pages 284 and 286, respectively, of this report.
o
CzechoslovaTcia
On September 21, 1925, the President of the Czechoslovak Republic
appointed Dr. Vilem Pospisil, vicg president of the Banking Office
of the Ministry of Finances; Mr. Karel Kucera, assistant general
director of the Banking Office of the Ministry of Finances; and^Dr»
Karel Brabenec, ministerial counselor of the Ministry of Finances,
as a commission to negotiate and execute, subject to ratification, an
agreement for the settlement of the Czechoslovak debt. The Czechoslovak commission, accompanied by Hon. Zdenik Fierlinger, appointed envoy extraordinary and minister plenipotentiary of Czechoslovakia at Washington, Dr. Eugen Lippansky, financial expert of
the Ministry of Finances, and Dr. Zikmund Konecny, of the Ministry
of Foreign Affairs, appeared before the commission on October 6, 1925.
I t developed that there were still certain differences between the
Czechoslovak commission and the Treasury as to the exact amount
of the debt. Conferences were then suspended to allow the experts
to determine the amount owed.
I t appeared that the Treasury held obligations of Czechoslovakia
in the principal amount of $91,879,671.03; that there were in addition
outstanding against Czechoslovakia on the books of the United States
Shipping Board Emergency Fleet Corporation and the War Department ciertain open accounts aggregating $4,991,482.48; that this
latter amount represented charges in connection with the repatriation
of Czechoslovak troops from Siberia. The Czechoslovak commission
admitted that they owed the United States approximately $80,000,000
principal amount which had been verified by their Government, but
disputed all indebtedness in excess of that amount. They referred
to the. open accounts si^ating that Czechoslovakia had been able to
reduce similar charges of the Shipping Board by more than 40 per
cent and that they anticipated that a very substantial reduction
could be readily effected in the amount now stated to be due. They
suggested that an audit be made of all sums expended, but it was
explained that this would involve heavy expense and a very considerable delay due to the fact that many of the vouchers and records
were scattered in'various places in the United States, in the Far
East, and in Europe. I t was finally agreed to accept $115,000,000 as




SECRETARY OF THE TREASURY

59

the principal amount of the debt as of June 15, 1925, including
interest, this amount to be taken in settlement of alh outstanding
claims between the two Governments and/or their agencies. The
Czechoslovak commission then offered to fund the amount so determined on the British-American basis over a period of 62 years,
paying interest at the rate of 3 per cent a year for the first 10 years
and 33^ per cent a year thereafter; to pay during the first 18 years
of the funding period a.total sum of $3,000,000 annually, funding
the balance of each annuity at the rates of interest stated, compounded annually, and adding the amount funded to the principal
of the debt as at the end of the eighteenth year.
A settlement on this basis was agreed upon at a meeting of the two
commissions on October 9, 1925, subject, however, to ratification by
the constitutional authorities of Czechoslovakia, and to the approval
of the President and Congress. A debt funding agreement was executed on October 13, 1925, and approved by the President the same
day. A copy of the agreement appears as. Exhibit 67, page 302 of
this report. The statement issued to the press at the conclusion of
the negotiations appears as Exhibit 66, page 302 of this report.
Esthonia
Mr. Antonius Piip, minister of Esthonia at Washington, conferred
with representatives-of the commission from time to time during
the year regarding the settlement of the Esthonian debt.
At its meeting on October 9, 1925, the commission authorized the
chairman to conclude a settlement on the same basis as the settlement made with Poland. There was first deducted from the original
principal amount of the debt $1,932,923.45, on account of the loss
of a shipment of surplus war material in September, 1919, when the
steamship John Russ^ which was carrying the supj^lies from France,
struck a mine in the Baltic Sea and was totally destroyed. A debt
funding agreement on this basis was executed on October 28, 1925,
and approved by the President the same day. A copy of the agreement appears as Exhibit 69, page 309 of this report. The statement
issued to the press when the agreement was signed appears as Exhibit 68, page 308 of this report.
France
A French debt commission, headed by M. Joseph Caillaux, finance'
minister of France, appeared before the commission on September 24,
1925, to negotiate a settlement of the French debt to the United'
States. The following were the members of the French commission
which accompanied M. Caillaux: M. Emile Daeschner, French Ambassador at Washington; Senator Henry Berenger; Senator Louis




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REPORT ON THE FINANCES

Dausset; Senator Fernand Chapsal; Senator Paul Dupuy; Deputy
Vincent Auriol; Deputy Lucien Lamoreux; Deputy Maurice Bokanowski; Deputy Pierre de Chambrun; M. Joseph Simon; M. MoreauNeret, Ministry of Finance; M. Haguenin, Inspector of Finances;
M. Lacour-Gayet, Financial Attach^ of the French Embassy at
Washington.
Joint meetings with the French representatives were held on
September 24, 25, 28, and October 1, 1925. The two commissions
were unable to reach an agreement before the departure of the
French commission from Washington on October 2, 1925. The
negotiations have not been suspended, however. I t is expected t h a t
they will be continued either through regular diplomatic channels or
through special representatives of the French Government coming to
this country to confer with the commission.
In order t h a t the public might be fully informed as to the attitude
of the commission in its discussions with M. Caillaux and his associates
it was decided at the conclusion of the negotiations to release to the
press the essential proposals made by the commission.
The following statement and proposal was handed M. Caillaux
onSeptember 28, 1925:.
We have had the privilege of considering your statement of this morning.
We understand this to be a reaflBirmation of your proposal to us of the 24th
instant, that is, that you should pay $25,000,000 annually for the first 5 years,
$30,000,000 annuaUy for the following 5 years, $60,000,000 annually for the
following 10 years, and $90,000,000 annually for the last 42 years, this sum
completely to extinguish the indebtedness. We have stated the reasons why
this sum in our opinion is inadequate.
It seems to us that you consider the above proposed annuities are an application
to your indebtedness to us of the principles discussed between France and England
as applicable to the war debt of France to England. But we wish to point out
that an examination of the existing settlements and tentative agreement between
France and EnglajicJ discloses an entire difference. We find that the principles
of these arrangements, if applied to the debt of the United States, would imply a
larger obligation upon the part of France to the United States ihitn that contained
in our proposal below. For instance, in its treatment with England, France
has considered its indebtedness for surplus war stocks and the indebtedness from
the Bank of France to the Bank of England for exchange purposes as ordinary
commercial debts repayable in full at full current rates of interest. Already
payment is being made of these two categories of obligations. On the BritishFrench war debt proper there appears to be contemplated a settlement by the
payment of an annuity of £12,500,000 for 62 years.
The $407,000,000 representing France's indebtedness to the United States for
surplus war stocks is, of course, of the same character as.the similar indebtedness
to England. While there has been no separation into categories in the general
debt of France to the United States, there are in the purposes to which the money
loaned by the United States was devoted many which are similar to those involved
in the creation of the Bank of France-Bank of England debt. Some $682,000,000 of the American advances represent exchange transactions, meeting of
maturing commercial debt obligations, and advances to the Bank of France.




SECRETARY OF THE TREASURY

61

In order that the two creditor nations be treated on a parity, this sum would
also have to be settled on the same basis as the Bank of France-Bank of England
debt, that is, as any commercial obligation.
These principles of settlement as applied to 'France's indebtedness to the
United States would necessitate:
(1) The $407,000,000 of indebtedness for surplus war supplies would in these
terms be treated as a commercial debt. It now bears 5 per cent interest and
matures in 1929. If from the 15th of June, 1925, the interest rate be reduced to
4J^ per cent, the rate which we now pay oh our Liberty bonds, and if the principal
be made payable over a period of 2P years, then the annuity payments required
would amount to over $30,000,000 per annum. This is parallel to the existing
French agreement for payment of British surplus war supplies except that it is
based on a lower rate of interest and upon a term of years more favorable to
France than accorded by England.
(2) Six hundred and eighty-two miUion dollars of the $2,933,000,000 of other
indebtedness represents advances to make payments on maturing commercial
obligations and in support of the franc in international exchange and is therefore
on parallel lines to the advances made by the Bank of England to the Bank of
France. If this sum were treated also upon a commercial basis and interest
were calculated to June 15, 1925, at the rates paid by France to the Bank of
England, the principal sum with accrued interest at that date would be
$927,000,000, and if in this case also future interest be reduced to 4M per cent
and the principal be repaid over a period of 20 years, the annual annuity required
would be nearly $70,000,000. This again compares with the existing EnglishFrench settlement, except that it is at a lower rate of future interest and the
principal is extended over a term of years more favorable to France.
(3) If an annuity over 62 years comparable to that mentioned in the BritishFrench negotiations were applied to the remainder of our debt, it would imply
an annuity payable to us of about $61,000,000 per annum, even without adjustment for the gold security involved in the British negotiations.
The net result of the application of the principles to the American debt would
bring about that France should pay to the United States an annual amount of
$161,000,000 for the first 20 years, and $61,000,000 thereafter for 42 years.
These payments would be altered if the annuity of $61,000,000 were deferred
for the first seven years and added to the subsequent period, as discussed in
London. It seems to us that those principles of repayment are infeasible to
France in the application of its indebtedness to us.
We had intended in our note of the 25th to indicate a basis which we believed
would be a foundation for negotiations. We recognize the great diflSculties under
which the French Government is struggling and it is our utmost desire.to meet
them. We feel that such difficulties will be overcome within a few years and that
our mutual problem is to take into account this expected improvement.
You have requested that we should be more specific and we have now the pleasure of laying before you a definite proposal:
(1) We propose to consolidate the entire indebtedness into one total sum.
The amount of this indebtedness as of June 15, 1925, with accrued interest at
the rate of the existing French obligations, is about $4,227,000,000. We propose,
however, that interest should be calculated upon the most favorable basis of
our previous settlements, under which the principal, with accrued interest,
would as of June 15, 1925, amoun.t to about $4,025,000,000, being a concession
of over $200,000,000 in accrued interest.
(2) We propose that the French Government should undertake to pay the
principal of the debt in annual installments graduated upward during the period
of 62 years, as is^the case of the other settlements made by the United States.




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REPORT ON THE FINANCES

This would require at the first year the sum of $20,000,000 on account of the
principal, being approximately one-half of 1 per cpnt of the total principal, the
payments on principal increasing gradually over the entire period of 62 years.
You will recognize that in the arrangement of this schedule it has been the desire
of the American commission to so arrange the payments as to meet the economic
and fiscal necessities of France.
(3) There therefore remains the question of the rate of interest to be paid
upon the debt. In our desire to meet the difficulties of the French Government,
and at the same time to provide that the American people may secure some return
by participation in the increased strength and productivity to be expected in
France, we propose that interest the first year shall be at the rate of one-half of
1 per cent per annum, and that this rate shall increase each year by one-fourth of
1 per cent. This would bring an interest rate up to 3 J^ per cent at the thirteenth
year, and this to remain as the maximum for the balance of the priod.

On October 1, 1925, the following statement and offer were made
to.the French Commission:.
We wish to express our high appreciation of the frank and earnest effort of our
French colleagues to find a basis for settlement of this, the most difficult problem
which confronts our two peoples.
We have before us the revised offer of the French commission; that is, France
should pay $40,000,000 annuaUy for the fiVst 5 years; $60,000,000 annually for
the following 7 years, and $100,000,000 annually for the next 56 years, thus spreading payments over 68 years, there being important conditions attached to this
proposal which render these payments entirel}'^ uncertain.
The total payments offered imply a return of the principal of the debt and
somewhat less than 1 per cent per annum. In order to illustrate the sacrifice
which such a plan would impose upon our people we may point out that the
present value of the above payments, if made in full (upon the basis of interest
which we bear on Liberty bonds) is about $1,750,000,000. This amount compares
with over $4,100,000,000 which we have to meet in charges upon our taxpayers in
respect of the loans to France. In the plan which we laid before you the present
value of the payments which we proposed would be about $2,800,000,000 as
compared with the $4,100,000,000 as above, so that we have made most important concessions.
We beheve it is fully recognized by both commissions that the only basis of
negotiations fair to both peoples is the principle of the capacity of France to pay.
The nub of the difficulty of the two commissions arises from a difference in
judgment as to the future capacity of France to pay without, as we have stated,
undermining her economic and social fabric; and this difficulty narrows itself to
the future rather than to the present, for we are prepared to accept the views of the
French commission as to the immediate difficulties of France.
In order that we shall not be unmindful of every effort to meet the whole problem and at the same time to maintain the agreed principle of settlement, and that
there shall be no break in the effective continuity of our discussions, we wish to
lay before you the following suggestion, that is: While we can not accept the
proposal made we do propose that France shall undertake unconditionally to
pay the $40,000,000 per annum mentioned in your statement as your capacity
for the next five years; this is to be considered full current interest on the debt
during that period, and at the end of this five-year period the two Governments
shall again review the capacity of France to pay and determine at that time the
amounts which shall be paid over such further term as may be then agreed. The
above is, of course, subject to the approval of Congress.




SECRETARY OF THE TREASURY

63

It appears to us that within this period of five years the economic problem with
which we are mutually confronted will have been much clarified and we shall
both be in position to make better determination. We know that it is the earnest
desire of the American people not only to^be just but that they are willing to
make necessary sacrifices. We believe that with peace, the natural progress of
industry and' commerce, and the recovering strength of France a basis can be
found at such later date which will meet the views of our two countries.

M. Caillaux at the final joint meeting of the commissions in the
afternoon of October 1, 1925, made the following reply:
Before we answer the proposition handed to us, we desire to say to our colleagues of the wa>r debt commission how highly we appreciate the constant courtesy
shown to us and the efforts made to meet the difficulties which face our country.
We are also mindful of the principles laid down by your notes regarding the
unification of the debt and the reduction of the accrued interest. We furthermore note that you fully recognize the capacity of France to pay as the only
basis for any settlement of our debt toward the United States.
We would have been happy to reach a general and final agreement, which,
within the limit he has indicated, the French Minister of Finance has been intrusted to sign. The arrangement you now propose bears a provisional
character which has not been contemplated by the Government of the Republic.
Consequently, being as desirous as you are not to interrupt ihe negotiations,
which can not fail to reach an agreement, the Minister of Finance can do no more
than to submit to his colleagues of the French Cabinet in Paris, the propositions
which you have made to-day, and he will do his utmost to give you an answer
as soon as possible.

The statement issued to the press at the beginning of the negotiations appears as Exhibit 70, page 314 of this report.
The French commission sailed for France from New York on
October 3, 1925. The commission has not received from France an
answer to its proposal of October 1, 1925.
Greece
In a note dated August 30, 1925, the Greek Government notified
the American Charg6 d'Affaires at Athens that Mr. C. Simopoulos,
the Greek minister at Washington had been named as the representative of the Greek Government to negotiate a settlement of its
debt to the United States. The Greek minister has not yet opened
negotiations with the commission.
Italy
On June 25, 1925, the Italian ambassador at Washington, Nobile
Giacomo de Martino, acting under instructions from his Government, accompanied by Mr. Mario Alberti, general manager of the
Credito Italiano, honorary minister plenipotentiary of Italy, Mr. A.
Rosso, Counselor of the Italian Embassy at Washington, and Mr.
R. Angelone, commercial attach^ of the Italian Embassy at Washington, conferred informally with the chairman of the commission.
Secretary Kellogg, Senator Smoot, and Undersecretary Winston




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REPORT CN THE FINANCES

regarding the settlement'of the Italian indebtedness to the United
States. A further conference was held on June 30, 1925. The
Italian representatives presented a brief summary of certain data regarding the economic and financial condition of Italy and discussed
informally various bases of settlement of the Italian debt to the
United States. The original understanding between the chairman
and the Italian ambassador before any discussion took place was
that as soon as the preliminary conferences were had Mr. Alberti
would return.to Italy to collect full information disclosing Italy's
capacity to pay. Mr. Alberti returned to Italy early in July. The
commission was notified on October 5, 1925, that an Italian commission, beaded by Finance Minister "Count Volpi, would arrive in
Washington about October 31, 1925, to negotiate and conclude a
settlement of the Italian debt.
On November 2, 1925, an Italian commission consisting of His
Excellency Count Giuseppe Volpi di Misurata,, Finance Minister
and chairman of the commission; His Excellency Dino Grandi,
Undersecretary of State; His Excellency Giacomo de Martino, His
Miajesty's ambassador to the United States; His Excellency Count
Leho Benin Longare, His Majesty's ambassador; the honorable
Alberto Prrelli, the honorable Mario Alberti, and Mr. Gino Buti,
secretary general of the commission, appeared before the commission.
The' following experts were attached to the Italian commission:
Mr. Corrado Gini, Mr. Francesco Paolo Cantelli, Mr. Gino Ravenna,
Mr. R. Armanni, and Mr. Romolo Angelone.
Meetings of the commission with the Italian commission were
held on November 2, 4, and 12, 1925. During the course of the
negotiations other meetings were held between representatives of
the two commissions and their experts.
An agreement was reached at the final meeting on November 12,
1925. A debt funding agreement was signed on November 14,
1925, and was approved by the President the same day. It will be
submitted to Congress for its approval at its next session. A copy
of the agreement appears as Exhibit 74, page 319 of this report.
At the opening of the negotiations the Italian commission presented
a series of 23 documents discussing economic and financial conditions
in Italy and particularly its capacity to pay and to transfer sums
abroad. These documents were carefully examined by the American
commission and its experts and checked against reports and studies
that had been prepared for the commission. It was found that the
two commissions did not differ substantially as to the essential facts.
It was apparent that Italy was a country poor in natural resources;
that she was required to import much of her raw material, such as
coal, oil, iron, and copper, as well as large quantities of food needed




SECRETARY OF THE TREASURY

65

to support a rapidly increasing population; that with a heavy adverse
visible balance of trade her ability to transfer large sums abroad was
limited. Applying the principle of capacity to pay, a settlement of
the debt was made upon the following liasis: The principal of the
debt' to be funded was fixed as of June 15, 1925; interest on the
$1,647,869,197.96 principal amount of obligations of Italy held by
the United States was calculated at the rate of 4Jx4^% per cent a year
to December 15, 1922, and from then until June 15, 1925, at the rate
of ,3 per cent a year, making the principal of the debt to be funded
$2,042,000,000; the principal of the debt so determined is to be repaid upon proportionately the same schedule of annual installments
over a period of 62 years, as provided in the debt funding agreement
with Great Britain, except that during the first five years the annual
payments are to be $5,000,000 each, the balance of these payments
to be spread over the remaining years; after the first five years interest is to be paid at the rate of one-eighth of 1 per cent a year for
10 years, increasing for each successive 10-year period to one-fourth
of 1 per cent, one-half of 1 per cent, three-fourths of 1 per cent, 1 per
cent, and to 2 per cent during the last 7 years. Over the entire 62year period the United States will receive a total of approximately
$2,407,000,000 on account of an original debt of approximately
$1,648,000,000.
I t was the feeling of the commission that the above settlement
placed as heavy a burden upon the Italian people as the United States
was justified in imposing and that the terms of the settlement represented Italy's capacity to pay.
The statements issued to the press at the beginning of the negotia-.
tions,^at|the conclusion of the settlement, and at the signing of the
agreement appear as Exhibits 71, 72, and 73, on pages 315 to 318 of
this report.
Latvia
On July 8, 1925, Dr. Charles Louis Seya, the Latvian Minister at
Washington, conferred with the secretary of the commission regarding
the settlement of the Latvian debt to the United States. Further
conferences were held on July 21, August 21, August 25, and September ^21, 1925. A settlement substantially on the terms of the settlement concluded with Poland on November 14, 1924, was authorized
by.^the commission on September 24, 1925, and was accepted by the
Latvian Minister. A debt-funding agreement was executed the same
day subject to the approval of the Saeima of Latvia and the approval
of^Congress. The agreement was approved by the President. I t
will be submitted to Congress at the next session. A copy of the
agreement appears as Exhibit 65, page 296 of this report. The statement issued to the press when the agreement was signed appears as
Exhibit 64, page 295 of this report.
60501—FI 1 9 2 5 t — 5



66

REPORT ON T H E FINANCES

Liberia
No proposals regarding the funding of the Liberian debt have been
made since the pubhcation* of the last annual report. The commission has received informal advices, however, to the effect that the
indebtedness will probably be paid in cash during the present fiscal
year.
Lithuania
The debt settlement with Lithuania referred to in the last annual
report was approved by the Seimas of Lithuania on December 18,
1924, and by Congress on December 22, 1924.
On September 26, 1925, the Cabinet of Ministers of Lithuania
formally advised the State Department that the Minister of Finance
was intrusted with the execution of all the conditions embodied in the
debt-funding agreement and that all steps taken or to be taken under
the terms of the agreement were authorized by the Government of
Lithuania.
On October 8, 1925, in accordance with the terms of the agreement,
the Treasury canceled and surrendered to Mr. Kazys Bizauskas, the
Lithuanian Minister at Washington, the original obhgations received
from his Government in exchange for new bonds of Lithuania issued
under the debt-funding agreement in the principal amount of
$6,030,000. As $30,000 of the above principal amount was paid on
-Tune 15, 1925, the bond for this amount was immediately canceled
and returned to the Minister.
A copy of the agreement as executed on September 22, 1924, containing the form of bond actually executed and delivered on October 8,
1925; of the report of the comihission to the President, dated September 22, 1924; of the letter of the"President to Congress, dated December 4, 1924; and of the act of Congress approving the settlement are
attached as, Exhibits 53, 54, 55, 56, pages 268 to 276 of this report.
Nicaragua
As stated in the last annual report the indebtedness of Nicaragua
has not been funded. Payments are being made from time to time on
account of the obligations held by the United States.
Poland
The debt settlement with Poland described in the last annual
report was approved by the Polish Diet on January 23, 1925. The
act passed by the Diet was signed by the President of Poland and
published in the Polish Law Journal on February 28, 1925, from
which date it became effective. The settleihent was approved by
Congress on December 22, 1924.




SECRETARY OF THE TREASURY

6T

On April 27, 1925, the Minister of Foreign Affairs and the Minister
of Finance of Poland authorized Dr. Wladyslaw Wroblewski, the
Polish Minister at Washington, to sign the bonds to be issued under
the fujiding agreement and to do all acts necessary or proper to
carry out the terms of the agreement. On May 21, 1925, the
Treasury canceled and surrendered the original obligations of Poland
in exchange for new bonds issued under the debt-funding agreement
in the principal amount of $178,560,000.
Copies of the debt-funding agreement of November 14, 1924, containing a form of bond actually executed and delivered on May 21,:
1925: of the report of the commission to the President, dated November 14, 1924; of the letter of the President to Congress, dated
December 4, 1924; and of the act of Congress approving the settlement are attached as Exhibits 57, 58, 59, and 60, pages 276 to 284
of this report.
Rumania
On November 9, 1925, a Rumanian commission consisting of Mr.
N. Titulesco, Rumanian minister at London, president of the commission; Mr. Eftimie Antonesco, counsellor of the High Court of
Cassation and Justice, vice president of the commission; Mr. Emil
Giuan, director general of public debt. Ministry of Finance; Mr. V.
Slavesco, director. Credit Industrial Co.; Mr. D. Ciotori; Mr. Victor
Badulesco, subdirector of Credit Bank; and Mr. Savel Radulesco,
appeared before the commission to enter into negotiations for the
settlement of the Rumanian debt to the United States. I t is expected that the negotiations will be concluded shortly.
, A copy of; the press statement issued after the first meeting appears
as Exhibit 75, page 323 of this report,
Russia
There is no government recognized by the United States.
Yugoslavia
I t is expected that Yugoslavia will send to the United States in
the course of the next few nionths a commission to negotiate a settlement of its indebtedness, although no formal advices to this effect
have as yet been received by the commission.




68

REPORT ON T H E FINANCES
GOLD

The gold standard and international trade
Among the most far-reaching events of the past year were the
steps taken by various countries toward the restoration of the gold
standard. At the present time most of the major trading area& of the
world are on an international gold basis, either through the removal of
the restrictions on gold exportation or through the maintenance of the
foreign values of their currencies at a fixed relationship to gold. The
return to the gold standard by Great Britain in April, 1925, was
accompanied by similar action on the part of Australia, New Zealand,
the Netherlands, and the Dutch East Indies. South Africa followed
shortly afterward. Sweden was already on a gold basis, having
resumed gold payments in April, 1924. A number of other countries,
including Germany, Switzerland, Austria, Hungary, Russia, Czechoslovakia, Finland, Yugoslavia, Lithuania, Latvia, Danzig, and
Esthonia have adopted a form of the gold standard or have stabilized
their currencies with reference to gold.
The extent and rapidity of the movement back to the gold basis is
an indication of the great improvement in economic conditions which
has taken place throughout the world within recent years. The
restoration of the gold standard means greater stability in world trade.
During the past 10 years the market machinery has been working
imperfectly; the various parts of the mechanism have had no common
stabilizing influence; fluctuating money and fluctuating exchange
rates have been disturbing influences, adding uncertainties and risks
to the world's business.
The return to a common international standard will tend to stabilize
industry in foreign countries and increase their purchasing power.
Enterprises can compute in advance the price which they must pay
for raw materials and figure much more closely on the price which
they can secure for their products. Thus they can operate on a
larger scale and increase their foreign purchases. This means a
greater demand for our surplus products. With the improvement
abroad we may, of course, expect increasing competition in certain
lines which may necessitate some gradual readjustment in this
country, but the net result will be the broadening of our markets and
opportunities and the quickening of our economic development.
Another benefit to this country and especially to the holders of
foreign securities is the improved credit situation in the gold standard
countries. There still exists a scarcity of capital in Europe, and in
order to make reasonably rapid progress in reconstructing their industries, and in maintaining or increasing their present scale of purchases
abroad, these countries must be able to borrow from this country
This can be done only if their credit is maintained on a sufficiently




69

SECRETARY OF THE TREASURY

strong basis to gain and hold the confidence of our investors. I n
fact, there have already been substantial foreign borrowings in this
country. The following shows the new capital invested in foreign
securities during 1922, 1923, 1924, and the first nine months of 1925:
Calendar year

1922
1923

New capital
invested m for,eigxi:Securities
$694,000,000
377.000,000

New capital
invested in foreign vsecurities

Calendar year

$877,000,000
655,000,000

1924
..
1925 (9 months)

In addition to stabilizing the exchanges, increasing foreign piirchasingpower, and improving the credit of foreign countries, the return
to the gold standard by the rest of the world will mean greater
stability of credit conditions within our own country and a lessening
of the danger of inflation through abnormal gold imports. With the
return of England and other major countries of the world to the gold
basis the international movements of gold will again be adjusted to
credit.and trade conditions, and the United States will no longer be
called upon to absorb such a large proportion of the new supply as
it has during the past few years.
Gold movements
Either directly or indirectly, the monetary and fiscal reforms
abroad in connection with the restoration of the gold standard are
largely responsible for the movement of gold from the United States
during the past year. For over four years this country had witnessed an unbroken flow of gold to its shores amounting to a net
importation of nearly $1,700,000,000 between April, 1920, and
November, 1924. In December, 1924, however, the direction of the
flow changed for the first time since 1920, and for seven months
exports exceeded imports. During the period from December, 1924,
through June, 1*925, net exports aggregated $180,000,000. January,
1925, marked the high point of net gold exports at $68,488,143 for
the month, and since that time a steady decline in exports has been
apparent. In July, August, and October imports again exceeded
exports, but September showed a small net export. Net figures for
each month since December, 1924, are given below:
Net exports
December, 1924..
January,. 1925
February, 1925...
March, 1925
April, 1925
May, 1925
June, 1925
July, 1925
August, 1925
September, 1925..
October, 1925




Net imports

$29, 400. 604
68, 488,143
46, 997,181
17. 707, 094
12, 734, 062
1,997,130
2, 286, 345
$5. 787, 660
2, 726, 046
2,656.149
22,7(:i,459

^0

KEPORT ON T H E FINANCES

Taking the fiscal year 1925 as a whole, net exports aggregated
$115,000,000. This compares with net exports of $316,000,000 during
the fiscal year 1920, which covered practically the entire period of
the previous export movement. The following table gives the imports
and exports of gold for the fiscal years 1920 to 1925:
.
Gold i m p o r t s Gold exports

Fiscal year
1920
.....'.
1921
1922
1923
1924..........
1925
1926 ( J u l y 1 to N o v . 1)

—
:..

Net imports

$150,540,200
638, 559, 805
468, 318, 273
284, 089. 550
417, 025,-638
134, 145, 136
69, 934. 549

$505,021,903
440,972, 991
235,067, 575
406,818, 697

$466,420,606
133, 537, 902
27.345, 282
49, 021.975
10,206,941
, 248, 729, 698
41,375,533

N e t exports
$315,880,406

114, 584, 562
28.559.016

Conditions leading to the withdrawal of gold during the last year
differ from those prevailing during 1920. The export of the earlier
period represented chiefly a withdrawal by oriental and South
American countries of balances accumulated in this country during
the period of gold embargo which ended June, 1919. With the
exception of exports to India and the Orient, the movement of gold
from the United States since December, 1924, however,, has been
related to monetary situations in foreign countries and reflects
further steps in monetary reorganization abroad.
The following table shows the principal destinations of gold exports
during the fiscal years 1920 and 1925:
;
Fiscal year
1920
Germany. _
British I n d i a
Australia
United Kingdom...
Hongkong
Mexico
1.
Netlierlands
Argentina
Canada
Venezuela
Uruguay
China
Japan
Spain..!......
Straits S e t t l e m e n t . .
Dutch East Indies.
All other
Total

,$10,
.38,888,
1,754,
59,901,
20. 875.
15,
116.095.
7,950,
5.271.
15,250.
54. 566,
85.851.
14, .'i03.
10,893,
17,263,
17,330,
.,

466,420,606

Fiscal year
1925 . •'
$86, 917.166
67, 327, 550
26, 925. 176
18, 423,626
1 0 918.155
,,
5. 761.731
5,642,466
5,631.200
4, 811,991
2, 060.010
932.290
617,431
812,898
500, 600
11 447.408
248, 729, 698

Germany has been the source of the largest demand for gold for
the purposes of monetary reconstruction. ^ When the Reichsbank
was organized in the summer of 1924, the gold reserve of the bank
held in Germany was at the low point of about $100,000,000. Since
t h a t time the gold reserves of the Eeichsbank have more than
doubled, being about $235,000,000 at the end of July, 1925, exclusive
of gold held abroad. A large part of the funds used by Germany




71

SECRETARY OF THE TREASURY

to obtain gold was derived from the proceeds of the 800,000,000•mark international loan floated a year ago. The return to the
United States and to other countries of foreign currencies in use in
Germany during the period of currency depreciation also served to
create gold credits abroad.
The other European countries which have either reorganized their
central banks or have established new banks of issue during recent
"years have also absorbed considerable gold.. The total gold reserves
Tof these banks, including the Reichsbank,'was $419,062,000 at the end
of June, 1925, .of which $203,388,000 was acquired in the last fiscal
,year. The following" table shows the dates on which these banks
were organized and their gold holdings at the end of June, 1924 and 1925:
[In thousands of dollars]
: .

.

•

•

. ,

•

••

•

.

.

"

.

•

.

Gold reserve

•

Date opened

Country .

Czechoslovakia.
Yugoslavia
Russia
Lithuania
Latvia
Austria
L. .
IDanzig
•.
Hungary..!.. _'
Poland
Germany.. •

(I)

1.......1
...'

..
_
;

•
..1..1...
>.

Total

•

Last
statement
of
June, 1924

Last .
statement
of
June, 1925

i

26,827
13,896
47,698
2,448
907
1,516
3
3,489
16.0 9
102,871

27,020
. 14,089
87,014
3, 335
1,004
1,597
1
8,941
23,160
252,901

215,674

:

February, 1920
October, 1921
. . . . . . 1 . . Septeniber, 1922
November, 1922
January, 1923..
.'
March, 1924...i
April, 1924 . :
do...
:
October, 1924

419, 062

' Central banii has just been organized after ah intermediate period of temporary organization in the
ministry of
finance.
'

^ The gold holdings of other European banks changed relatively
slightly in the past year with the exception of the Bank of the Netherlands, which exported gold to purchase foreign exchange interest-paying
items. A comparison of the pre-war gold holdings of these banks,
however, with their present gold reserves reveals the fact that the
reserves of the central banks of Eiirope a;s a whole and of most of the
banks individually are greater now than in 1913. During the war gold
.was withdrawn from circulation in both belligerent and neutral European countries and concentrated in central reserves and treasuries.
Much of the gold in belligerent countries was exported to neutral countries and has been retained by them, which accounts for the enormous
growth and.present size of the gold reserves of the latter countries'
'England's present gold reserves are about equal to her pre-war
reserves plus the amount of her domestic circulation. Russia and
Austria-Hungary lost practically their entire gold holdings during
the war, and Germany, after, concentrating her own gold and gold
received from her allies in the reserves of the Reichsbank, lost a




72

KEPORT ON T H E FINANCES

large part of it during the postwar period. Russia and the nations
now occupying the former territory of Austria-Hungary are the only
European countries whose present gold reserves are very greatly
below their pre-war holdings, although Germany, Italy, Bulgaria,
andj Rumania have not entirely regained their 1913 gold position.
The present gold reserves of the banks of neutral European countries
arCimore than sufficient tomaintain the same ratio to their circulation
as in pre-war days if the values of their notes are calculated at current
rates of exchange. And while this ratio at present in the chief
belligerent countries is less than the pre-war ratio, in only five—
Russia (24 per cent), Germany (24 per cent), Belgium (15 per cent),
Greece (10 percent), and the territory formerly Austria-Hungary (13
per cent)—is that ratio less than 25 per cent. The following table
shows the gold reserves and note liabilities of the principal European
central banks prior to the World War and at the close of the present
fiscal year. The 1925 gold reserves given below represent minimum
figures for the actual gold holdings of these banks. In many cases
their reports show additional reserves in the form of currencies of
gold-standard countries, and holdings of foreign balances which can
be used to secure gold.
[Amounts in thousands of dollars]

Gold ,
reserves,
end of
1913 1

Country

Austria-Hungary
Austria
Hungary
Poland
Czechoslovakia

605, 212

251,421

. .

.. ..

--..

.._

49.8

i, 597
8, 865
23. 193
30, 513

116,345
64, 398
96,513
205,820

251,421
48,062
10,615
19,666
6,948
678,856
278, 687
170, 245
5,211
288.103
60,898
12,846
8,760
29, 242
786,800
92. 490
27,372
32,801

64,168
62,551
7,853
56. 131
8,354
710,696
252.901
764, 935
8,688
218, 403
183,040
39,457
9,268
26,020
87,013
489, 565
62,915
96, 174

605,212
483,076
206,010
340, 533
36, 477
30, 391
40,616
94, 405
21.810
32. 431
1,102.715
1,999,506
8 684, 403 8*1,073,160
144,086
2,126,967
47,285
86,861
637,038
740, 287
125. 703
356,136
28,840
69, 227
93, 527
83,377
84, 341
89, 387
859, 293
316,450
371, 385
629, 279
62,838
140,128
161,972
60.568

2,809,023

3,138,132

_.

Total
Belgium
'. .
Bulgaria
Denmark.Finlana
France
Germany
Great B r i t a i n *
Greece
.
Italv«Netherlands _
Norway
Portugal
Rumania
Russia.- - -Spain.Sweden
Switzerland
G r a n d total

P e r cent
Gold
N o t e liaof gold
N o t e liareserves,
bilities,
reserves
bilities,
last stateto note
end of year mlastt , state- ,
ment, June
e n J u n e liabilities,
1913 1
1925 1
1925 2
end of
year 1913

5,012,147

8,853, 573

» Converted at par.
* Converted at current rates.
'Includes all paper currency issuas outstanding on the two dates.
•Reichsbank and Rentenbank notes and notes of 4 other banks of issue.
'1925 figures include gold in carrency note account and currency notes.
•Includes 3 banks ot issue and government.




Per c e n t
of gold
reserves
to note
liabilities,
last statement, June,
1925

1 4
13 8
24.0
14 8
13.3
15 4
25.8
59 6
25.8
35 5
23.6
36.0

49.8
23.3
29.1
48.4
31.9
61. 6
'40.7
118.2
11.0
53.6
48.5
44.5
9.4
34.7
91.6
.24.9
43.6
54.2

29.6
51 4
56.9
11.1
29.1
27.6
77.8
44.9
59.4

66.0

35.4

SECRETARY OF THE TREASURY

73

Of the $134,145,136 of gold imported during the fiscal year 1925,
$31,288,037 came from Canada, $26,550,946 from the Netherlands,
$25,234,803 from the United Kingdom, $15,270,693 from France,
and $13,841,538 from Argentina.
Gold production
The world's gold production continued to increase in 1924. The
total production for the calendar year stood a t $384,500,000 as compared with $367,000,000 for 1923. This is the largest production
in the last six years, but is below the peak of $470,000,000 in 1915.
The increase in 1924 is attributable in a slight degree to Canadian
production, but more especially to the output of the mines of South
Africa. Canada set a new high record at $31,500,000 in 1924 compared w i t h $25,000,000 in 1923. South Africa, however, with a
1924 production of about $210,000,000, or 55 per cent of the total
world production, almost reached its high record of the fiscal year
1916, and the Transvaal mines, which supply most of the South
African product, actually exceeded their 1916 record. The contribution of the United States was slightly larger in 1924:—$52,277,000—than in the previous year. Gold production in South Africa,
British India, and to some extent in Canada, has been immensely
aided by the postwar depreciation of the English pound, for mining
costs in these countries were paid in depreciated currency while the
product was marketed at its full value. With the pound now at par
this source of preferential profit to the miners of the British Empire
has disappeared.
Gold used in the arts in the United States in the calendar year
1924 was estimated at $65,887,851, of which $37,913,310 was new
metal. Gold reclaimed from the arts during the same period was
about $13,000,000.
Stoclc of monetary gold in the United States
The monetary stock of gold held by the United States reached its
highest point in the history of this country on December 1, 1924,
when the amount was $4,570,000,000. The heavy export of gold
beginning in that month, however, brought a decline in gold holdings, so that, the fiscal year showed a decrease of $101,000,000 in the
total monetary gold holdings in the United States. The gold stock
in this country, however, continues to equal almost one-half of t h e
visible stock of gold in the whole world, and is 2.35 times as great as
it was in 1913. The gold holdings of the Federal reserve banks
showed a large decrease during the fiscal year, and also their proportional holdings of the total gold stock. Gold exported from this
country during the year has come largely from the holdings of these
60501—FI 192ot




6

74

REPOET ON T H E FINANCES

banks, which were also reduced by further payments of gold into
circulation.
The following table shows the monetary stock of gold in the
United States on the 1st of July each year from 1913 to 1923, inclusive, and on the first of each month from July 1, 1924, to November
1, 1925, together with the gold holdings of the Federal reserve banks
on or about the.same dates:
Stock of
monetary
gold in
United
States (in
millions of
dollars)

Date

Per cent
of
amount
in 1913

T o t a l gold
holdings of
Federal
reserve
b a n k s (in
millions of
dollars)

R a t i o of
gold
held b y
Federal
reserve
banks to
total •
Per cent

J u l y , 1913
J u l y , 1914..
J u l y , 1915
J u l y , 1916
J u l y , "1917
July, 1918...
.
J u l y . 1919
J u l y , 1920
J u l y , 1921..
J u l y . 1922
J u l y , 1923..
J u l y , 1924
A u c u s t , 1924
S e p t e m b e r , 1924
October, 1024
N o v e m b e r , 1924
December, 1924
J a n u a r y . 1925
F e b r u a r y , 1925
M a r c h , 1925
April, 1925
M a v , 1925 .
J u n e , 1925
July, 1925.
r^ugust, 1925
ibjptember, 1925
victober, 1925
N o v e m b e r , 1925

_
_
.

_
1

:.

..

.

.

.

.

'•
:
. . .

..j
:

"...
-

1.871
1,8911.986
2,4,'=0
3,019
3, 076
3,113
2, 709
3, 298
3.785
4, 050
4,491
4,517
4,531
4,548
4,554
4, 570
4,547
4,482
4.424
4,405
4.394
4,396
4. 386
4,391
4,400
4, 399
4,442

100
101
106
131
161
164
166
145
176
202
• 216
240
241
242
243
243
244 '
243
240
236
235
235
235
231
235
235
235
. 237

329
543
» 1.237
» 1,928
2, 148
» 1, 854
2, 468
3,021
3,095
3.128
3,143
3,089
3,047
3.037
• . 3,025
2, 937
2,910
2,878
•2,848
2,848
2,817
2,790
2, 783
2. 767
2,760
2,763

16.57
22.16
40.97
62.68
69.00
68.44
74.83
79.82
. 76.42
69. 65
69.58
68.17
67. 00
. 66.69
• 66.19
64.59
64.93
65.05
64. 65
64. 82
64.08
63. 61
63.38
62. 89
62.74
62.20

> E.Kclufling gold held abroad, which is not included in the monetary stock in the United States. -

As a result of the polic}^ of the Treasury and the Federal reserve
banks inaugurated in March, 1922, of paying out gold certificates
with other forms of money in the ordinary course of business, gold
certificates in circulation increased about $894,620,423 from July,
1922, to November 1, 1925. With the enlarged circulation of gold
certificates it has been necessary to continue the coinage of gold in
order to be in a position to meet the legal requirement that at least
one-third of the gold held against certificates be in the form of gold
coin. From July, 1924, to November, 1925, the amount of gold
coin in the Treasury increased from $460,000,000 to $611,000,000.
Gold coin held in the Treasury above the legal requirement against
gold certificates in circulation on November 1, 1925, exceeded the
amount so held on July 1, 1924, by about $62,000,000. The proportion of gold coin and certificates to total money in circulation also
continued to increase during the last fiscal year. About 30 per cent




75

SECEETARY OF THE TEEASUEY

of the total money in circulation in the country at present consists
of gold coin' and gold certificates. The following table shows the
total money in circulation and the amount of gold coin and gold
certificates in circulation outside the Treasury and the Federal reserve banks on July 1, 1922, and subsequent dates:

Month

J u l y 1. 1922
Oct. 1, 1922
J a n . 1, 1923
A p r . 1, 1923
J u l y 1, 1923
Oct. 1, 1923
J a n . 1, 1921
A p r . 1, J924
J u l y 1, 1924
Oct. 1, 1924
J a n . 1, 1925
A p r . 1. 1925
J . u l y l , 1925.
Oct. 1, 1925
N o v . 1. 1925

Gold certifiGold coin
cates
in circulation in circulation

$415,937,553 $173, 342,199
412,894,448
214, 956, 729
429,192, 179
302, 743,899
410,102,015
319, 068, 349
404,181,003
386, 456,089
397.980, 664
4fi.'i,279,009
415,319,417
582, 029, 209
408,061,873
687, 252,519
395, 746, 934
801, 380,819
427,969, 721
898, 165,509
458, 206. 331 •970, 564, 239
469,447,591
914, 968,019
423,860,506 1.004, 823, 302
056, 659
41.3,973,095 1, 050,
429, 985, 296 1,067, 962,622

T o t a l gold
in circulation

Total money
in circulation

$589, 279, 752 $4, 374,015, 037
4, 520.895, 293
627, 851,177
4, 732,898. 991
731, 936, 078
4, 655,675, 790
729, 170, 364
790, 637, 092 4. 729,378,516
4, 849,921,139
863, 259, 673
4,951, 085, 383
997. 348, 626
4,812, 861,042
1,095, 314,392
4, 754,772, 754
1,197. 127, 753
4,806, 366, 540
1,326, 135,230
4, 992,930,842
1,428, 770, 570
4,776, 167,142
1,384, 415,610
4, 736,464,237
•1,428, 683,808
4,827, 005,324
1,464, 029,754
4, 900,838,845.
1,497, 947,918

R a t i o of
gold coin
a n d certificates to
total m o n e y
in circulatioa
13.5
13.0
15.5
15.7
16.7
17.8
20.1
22.8
25.2
27.6
28.6
29.0
30.2
30. 3
30.6

UNITED STATES PAPER CURRENCY

At the beginning of the fiscal year 1925 the department was confronted with a ,very serious situation regarding the supply of United
States paper currency. Demands for-additional amounts of $1
notes continued unabated. The circulation of gold certificates had
very largely been restored, requiring the printing of greatly increased
amounts of gold certificates. The condition of the paper currency
in circulation, generally' speaking, was far below an acceptable
standard. Reserve stocks in the bureau, in the office of the Treasurer
of the United States, and in the Federal reserve banks, were depleted
almost to the vanishing point. To add to the unfavorable situation
it was found that the quality of the notes produced had not improved.
In the face of all this the department was confronted with smaller
appropriations, in the aggregate, for the fiscal year 1925 than were
provided for 1924. The situation was so critical that an intensive
survey was undertaken, and on October 6, 1924, a printing program
was inaugurated, that, if continued through the year, would provide
for the delivery of 210,453,000 sheets of completed currency instead
of 150,000,000 sheets authorized by law, and for which appropriations had been granted, and further would provide for establishing
a working reserve of 30,000,000 partially completed sheets in the
Bureau of Engraving and Printing. Supplemental and deficiency
estimates necessary to carry out this program were submitted for the
consideration of the Bureau of the Budget.
'




76

o

EEPOET ON T H E FINANCES

This program, in short, provided (1) for additional printing of $1
bills and gold certificates required for payment purposes; (2) for
additional printing for improving the standard of fitness; (3) for
additional printing for establishing an adequate reserve stock of
completed notes with the Treasurer of the United States; and (4)
for establishing in the Bureau of Engraving and Printing a working
reserve of partially completed work.
The Bureau of the Budget subsequently passed only the estimates
necessary to provide additional printing required for maintaining
payments, and for establishing a working reserve in the .bureau, and
thereafter the Congress authorized the printing and delivery of
25,144,750 additional sheets during the fiscal year 1925, making the
total authorized deliveries for "the 3^ear 175,144,750 sheets. At the
same time favorable action was taken with respect to 30,000,000
sheets for establishing a working reserve in the Bureau of Engraving
and Printing, but the authority given in this respect was not made
available until the fiscal year 1926. The balance of the program
failed and printing schedules were reduced accordingly for the
balance of the year to June 30, 1925.
Meanwhile, consideration of currency matters indicated the
importance of a very much more effective control over the factors—
determinable requirements, supply, and distribution. A currency
board was established on January 8, 1925, comprised of the Assistant
Secretary of the Treasury in.charge of Fiscal Offices (chairman), the
Commissioner of the Public Debt, and the secretary of the Federal
Reserve Board. This board has authority in the matter of deter^
mining requirements, printing within the appropriation, and distribution of available currency, and it has demonstrated its efi'ectiveness.
The partial failure of the program last year was unfortunate in
t h a t no progress was possible in estabhshing very essential reserve
stocks of completed and partially completed currency. It was
further unfortunate in that it has not been possible, up to the present
time, materially to improve the standard of fitness of notes in circulation. However, for the present fiscal year the Bureau of the
Budget passed estimates and Congress granted the necessary appropriations for producing currency to the present capacity of the
Bureau of Engraving and Printing. Included in. this year's program
is provision for a working reserve in the bureau of 30,000,000 sheets
of partially completed currency. I t is hoped that in another year
the department will be given authority and funds to complete the
program adopted in the fall of 1924, and that the close of the fiscal
year 1927 will find the paper currency of the United States in a
satisfactory condition as regards supply, standard, and adequate
reserve stocks.




SECEETAEY OF T H E TEEASUEY

77

In reports for the fiscal years 1925 and 1924 reference was made
to the inauguration of new currency designs adopted in September,
1923. Such new designs were admittedly utilitarian ^ in character
and were adopted primarily to make the currency issues of t h e
United States more secure against counterfeiting and note raising.
The execution of these designs and particularly when applied t a
Federal reserve notes has presented unforeseen mechanical difficulties, and if carried out with respect to Federal reserve notes
would greatly add to their cost of production. In connection with
the consideration of ways and means to meet the $1 bill situation
the proposal to reduce the size of currency notes has again received
some consideration. I t is doubtless true that should a reduced size
be adopted, after inauguration, very important economies would
occur. A preliminary survey showed that the cost of reequipping
the bureau to produce a smaller size note would not be excessive,
and it has been suggested that without increased appropriations
greatly increased amounts of printing could be executed, and that
the currency situation would be improved. In these circumstances
it seemed wise to undertake a restudy of paper currency designs, and
this is now being done.
BUREAU OF ENGRAVING AND PRINTING

More sheets of perfect work were printed and delivered during
the fiscal year ended June 30, 1925, than during any other year in
the history of the bureau notwithstanding the fact that, because of
lack of funds necessary to keep the bureau operating at full capacity,
100 plate printers, and the number of operatives and other employees
required to handle their production, were furloughed. each day from
February 9 to June 30, 1925. Through the policy of a rotating furlough, trained employees were retained in the service in order to
handle the heavy program which faced the bureau on July 1, 1925.
The deliveries in 1925 reached a total of 464,000,000 sheets, as
compared with the deliveries in 1924 of 431,000,000, an increase
over 1924 of 33,000,000 sheets or 7.6 per cent. The increase of
33,000,000 sheets is made up of increases in the following classes of
work: 10,000,000 sheets of currency; 1,000,000 sheets of bonds,
notes, and certificates; 19,000,000 sheets of stamps; and 3,000,000
sheets of miscellaneous work. The highest number of sheets delivered
previous to the fiscal year 1925 was in 1919 when the World War
peak was reached, during which year the bureau printed and dehvered 447,000,000 sheets.
The average number of. employees in 1925 was 5,098, as compared
with 4,980 in 1924, an increase over 1924 of 118, or 2.4 per cent. In
1919 the average number of employees was 7,508.




78

EEPOET ON T H E FINANCES

The expenditures in 1925 were $10,041,457.46, as compared with
$9,401,925.68 in 1924, an increase over 1924 of $639,531.78, or 6.8
per cent. In 1919 the expenditures were $11,571,179.03.
I t will be noted that while the sheets printed and dehvered for
1925 represent an increase over 1924 of 7.6 per cent, expenditures
were increased 6.8 per cent and employees increased 2.4 per cent.
Two investigators from the Bureau of Efficiency have been detailed
to the bureau for the purpose of continuing the study of methods
and procedure undertaken by the special committee designated for
that purpose, but which was dissolved, owing to the assignment of
the members of the committee to other work. Many valuable
suggestions and recommendations have been submitted and adopted.
Plans for reconditioning a portion of the aid bureau building
(Auditors' Building) were drafted and approved. The work was
undertaken and excellent progress made. The plans contemplate
the transfer of the entire engraving division from the main building,
in which the floor space will be reallocated in order to eliminate the
present congested condition.
Two 400-subject rotary presses which were in storage have been
installed and a contract for the purchase of 12 more presses of this
type was let. This program contemplates the printing of all postage
stamps, except those of high denominations, on rotary presses.
When the installation of these presses shall have beeircompleted a
substantial reduction in the cost of the manufacture of stamps will
be realized.
Either extensive repairs to or entire replacement of three boilers in
the boiler plant, which have been in constant use for almost 25 years,
will be necessary within the next two years.
A thorough and exhaustive study of paper-making and sizing solutions has been undertaken at the Bureau of Standards with a view
to developing both a paper and a sizing solution which will produce
more durable wearing qualities in currency.
The department was'notified to vacate the premises occupied by a
warehouse in which the operating supplies of the bureau were maintained. I t will be necessary to lease other facilities and from all
indications the warehouse will be located a long distance from the
bureau. Warehouse facilities in close proximity to the bureau with
spur track service are urgently needed.
The scheme of organization put into effect on October 16, 1924,
after careful study, called for three assistant directors, but Congress
in the 1926 appropriation bill provided for only two. I t is hoped
t h a t provision will be made for the third assistant director in the next
appropriation bill for reasons outlined in the last annual report.




SECEETAEY OF THE TEEASUEY

79

CONTROLLING ACCOUNTS OVER TRANSACTIONS IN SECURITY PAPER

During the past year control over all transactions in security paper
was centralized in the division of public debt accounts and audit, the
controlling accounting and auditing office of the pubhc debt service,
which was also authorized to conduct a continuous audit of the accounts and records of the several offices handling security paper.
Formerly, the control was divided among the operating units of the
office of the commissioner of the public debt.
Under the present plan, a central control is maintained in the division of public debt accounts and audit over all transactions in security paper from the point of manufacture in the case of distinctive
paper, or notifica|.ipn of shipment by the contractor in the case of
hondistinctive paper, to the delivery of both as either imperfect
work or finished product. The plan provides for the f oh owing:
1. The maintenance of control accounts over transactions in distinctive security paper in the mills where it is manufactured.
2. The maintenance of control accounts over the stock of security
paper carried by the division of paper custody.
3. The maintenance of control accounts over security paper in
process of printing in the Bureau of Engraving and Printing.
4. The audit of the security paper accounts and records of the
distinctive paper mill unit, of the division of paper custody, and of
the Bureau of Engraving and Printing, including occasional physical
counts of paper held by those offices.
INSULAR POSSESSIONS

For some time past the unsatisfactory condition of paper currency
in the insular possessions of the United States has attracted the
attention of Treasury officials. In the Virgin Islands the situation
is perhaps worse than in the other possessions, not, however, because
the paper currency is unclean, as is the case in the other possessions,
b u t because both the paper currency and the metal coins are based
on the old Danish West Indian standards of value, and United States
dollars and cents are not legal tender. Moreover, the only commercial bank in the Virgin Islands is owned by Danish banks and is
under the control of Danish Government officials.
In view of the difficulties mentioned, a committee was appointed
early in 1925 by the Secretary of the Treasury to study conditions in
the Virgin Islands. This committee, after consultation with various
bankers and economists in the United States, decided that it would
be necessary, before recommending any changes in currency and
banking, to become better acquainted with the general economic
conditions of the islands than was possible on the basis of informa-




80

EEPOET ON T H E FINANCES

tion available in Washington. Since the Governor of the Virgin
Islands had previously requested that an expert be sent to the islands
for the purpose of investigating the existing system of taxation, a
representative of the Bureau of Internal Revenue was designated to
study the tax system, and a representative of the public debt service
was designated to investigate the financial and general economic
situation.
These gentlemen spent 12 days in the islands, and were able, with
the assistance of the governor and his staff, to collect considerable
information—laws, statistics, and opinions—which they have digested in the form of reports for submission to the various departments of the Government having jurisdiction.
This investigation emphasized the fact that there is no centralized
information in Washington relative to the affairs of all of our outlying insular or Territorial possessions, and that the bureau or department to which supervision of a particular possession has been assigned
has no convenient means of keeping in touch with what is going on
in the other possessions. This is all the more embarrassing since in
the case of some of these possessions the duties of supervision are
shared by two or more offices in Washington, rendering it more
difficult for Members of Congress or executiv.e officials, as well as
private individuals, promptly to obtain desired information.
I t is obvious that the government of the Territories and possessions could be conducted more efficiently and more economically if
each department concerned was promptly, made acquainted with the
experiences and achievements of the other departments. For this
reason an interdepartmental committee has been formed, comprised
of representatives of all departments having interests in the possessions, which committee will obtain and make available such information concerning the possessions as will aid each department in its
problems of administration. This committee, it is hoped, will also
gradually assemble laws, statistics, and other information relating
to the possessions, all of which will be helpful to any officials or
private individuals who may be interested in matters pertaining to
our Territorial possessions.
BUREAU OF INTERNAL REVENUE

Total collections of internal revenue from all sources for the fiscal
year 1925 were $2,584,140,268.24, compared with $2,796,179,257.06
for the fiscalyear 1924, a decrease of $212,038,988.82. Income-tax
collections amounted to $1,761,659,049.51 for 1925, compared with
$1,841,759,316.80 for 1924, a decrease of $80,100,267.29. Collections
of miscellaneous taxes amounted to $822,481,218.73, compared with
$954,419,940.26 for the fiscal year 1924, a decrease of $131,938,721.53.




SECEETAEY OF THE TEEASUEY

81

The repeal of some and a reduction in the rates of other miscellaneous taxes became effective on June 2 and July 3, 1924, under the
revenue act of 1924.
The collection of the tax on incomes during the first half of the
fiscal year 1925 was made at the higher rates provided for by the
revenue act of 1921, which was decreased by the 25 per cent credit in
the tax on individual incomes for the calendar year 1923, allowed in
sections 1200 and 1201 of the revenue act of 1924. During the last
half of the fiscal year 1925 the collection of the tax on incomes for the
calendar year 1924 was made at the reduced rates under the revenue
act of 1924.
During the fiscal year 1925 tax refunds were made from the foHowing
appropriations:
Refunding taxes illegally collected, claims accrued prior to
July 1, 1920
$452, 934. 42
Refunding taxes illegally collected 1924 and prior years
^ 49, 209, 535. 60
Refunding taxes illegally collected 1925 and prior years
11, 945, 475. 98
Refunding taxes illegally collected 1926 and prior years
90, 301, 337. 33
Total
--.-..
151, 909, 337. 33
Less amount by which repayments exceeded disbursements in
connection with the appropriation refunding taxes illegally
collected 1923
23, 921. 73
Net total

..._

^

.

151, 885, 415. 60

The interest allowed on claims for refunds under provisions of the
revenue acts of 1921 and 1924 amounted to $31,563,458.06, which is
included in the foregoing statement.
If the taxes refunded for erroneous and illegal collections for the
fiscal year 1925 and prior years, amounting to $151,885,415.60,
were deducted from the gross collections bf $2,584,140,268.24, the
net collections for the fiscal year would be $2,432,254,852.64. The
. gross collections, however, are used for comparative purposes in this
report.
Notwithstanding the unusual increase in the volume of work
thrust upon the Internal Revenue Bureau during the war, as well as
the postwar period, the bureau has now reached the point where a
normal condition of work can soon be looked forward to.
Since 1917 a total of 62,794,300 income-tax returns have been
filed with the Internal Revenue Bureau. The total number of
returns yet to be disposed of on June 30 was 2,011,084. As 975,298
of these returns are for the year 1924, and therefore only a part of
the current work which is just being received, it is evident that the
real accumulation of returns on hand yet to be disposed of is less
than a million.
»Includes $17,777,642.45 refunded as a 25 per cent tax reduction under provision of section 1200. revenue act of 1924.




82

EEPOET ON T H E FINANCES

The total number of cases by tax years, including those reopened
as a consequence of claims filed, pending before the Income Tax Unit
at the close of the fiscal year, compared with the number on hand
at the close of the two previous fiscal years, was as follows:
On h a n d
J u n e 30,
1923

1917
1918
1919
1920
1921
1922
1923 .
1924
Total

_

On h a n d
J u n e 30,
1924

28,916
84,323
103,198
458.205
1,190, 902
1,167,000

R e t u r n year

8,773
19, 364
61,327
166,484
353, 781
718,812
1,101, 614

3,417
6,002
12.155
90. 746
171,221
380, 045
372, 200
975, 298

3,032, 544

2,430,055

2,011,084

..
:

On h a n d
June. 30,
1925

I t can be seen from the above figures that the number of cases
pending before the Income Tax Unit was reduced in total more than
400,000 during the last fiscal year and by more than 1,000,000 during
the last two years. I t is no easy task to dispose entirely of the
balances pending for 1917, 1918, and 1919 cases because of the continued reopening of cases through the medium of claims. A recent
survey of returns for these years indicated that 89 per cent of those
pending had been previously closed and were reopened on claims.
The files audit procedure introduced during the preceding year is
complete on the 1922 and 1923 returns, and the 1924 returns are
being handled as they are received. As a result of this procedure a
large percentage of the cases for 1922 and 1923 are closed and the
remainder are ready for field and office audit.
During the year the field division effected a virtual clean-up of 1917,
1918, and 1919 cases, those remaining being accounted for by claims.
Under the new field procedure the divisions have undertaken the
completion of 1920 and 1921 returns by September 30, 1925.
Every effort has been made to place the work of the Internal Revenue Bureau on a higher degree of efficiency by the introduction of
certain economies and revision of methods of procedure.
Among the important steps taken toward the efficient and expeditious disposal of the work has been the adoption of a decentralization
program. This action is not only in the interest of efficient administration, but of vast assistance to the taxpaying public. In adopting
its program of decentralization, the Internal Revenue Bureau proceeded with caution, knowing that the immediate breaking up of
functions which have been performed in Washington for a long period
of time would bring about great confusion in the records, would result
in the reworking of cases already practically disposed of, and might
lead to other hindrances. On August 18, 1923, the first definite move
in the direction of decentralization was made by the bureau when




SECEETAEY OF THE TEEASGEY

83

revenue agents were directed to retain reports of investigations in their
offices for a period of 20 days and were authorized to consider protests
of taxpayers filed with them within that period. The decentralization procedure has been worked out gradually. At present practically all cases, new as well as old, where the tax liability appears
to be different from that reported by the taxpayer, if a satisfactory understanding can not be reached by correspondence, are
handled by field officers with the idea of giving the taxpayer the
rilght to discuss any proposed change with representatives of the
bureau located near his home. The advantages of such a plan, both
from the viewpoint of the taxpayer, as well as the Government, are
apparent.
All individual returns for 1924 reporting gross incomes of $25,000
or less are retained in collectors^ offices and audited by collectors'
forces in the field.
. T h e field divisions of the Income Tax Unit are allocated to eight
supervisory districts,,and a supervising agent looks after the work of
each of the districts. Frequent reports.are made to Washington covering the condition of the work> methods of technical and administrative procedure, as well as suggesting changes and improvements
in organization, procedure, or personnel, which tends to increase
efficiency and maintain uniformity of action.
At this time it can not be stated whether the decentralization plan
is operated at a lower cost of audit compared with the former procedure, but it is believed safe to say that a certain economy will be
effected in expediting the closing of cases and materially reducing, by
settlement in the field where facts are readily obtainable, the number
of cases reaching a controversial stage.
A serious handicap in connection with personnel is the inability to
retain trained and competent employees for the more responsible
positions.
The bureau is further handicapped by housing conditions in
Washington. Approximately 6,000 employees occupy 10 separate
buildings scattered over a wide area. Approximately two-thirds of
the space occupied by .the bureau is in Building ^' C,'' Annex No. 2,
the Pettus Building, and Building No. 5, all of which are temporary
buildings of fiimsy construction erected during the war for emergency
use, and which are rapidly deteriorating. Added to this is the fire
hazard. Housed in these buildings are important documents and
records, such as tax returns, assessment lists, and other valuable
papers used in the audit of returns. Many of these papers could not
be replaced, and their destruction would mean irreparable loss, not
only to the Government but td thousands of taxpayers as well.
In the miscellaneous tax unit the work is on a practically current
basis, with a materially reduced force compared with the previous
year.



84

"

EEPOET ON T H E FINANCES

The 1924 revenue act covering estate tax established certain
procedure whereby the taxpayer is accorded the privilege of an appeal
to the United States Board of Tax Appeals before assessment of a
deficiency tax may' be made. Also, for the first time, a gift tax was
imposed. The procedure formulated to meet such requirements has
tended greatly to increase the correspondence in that now, instead of
one letter, tentative and closing letters must be addressed to taxpayers.
Although the sales tax collected for the fiscal year was much less
than in prior years, the work of the division did not decrease in
relative proportion, as much work was necessitated in connection
with administration of the provisions of prior revenue acts.
Further progress was made in the specialized audit of capital stock
returns segregated according to industries, which now include public
utilities, railroads, banks and trust companies, hotels, apartment
houses, oflSice buildings, mining and holding companies, natural gas,
oil, and timber holding companies, and textile corporations. Such
segregation has resulted in a more intelligent and uniform audit.
Closer cooperative working arrangements were established between
the Income Tax Unit and the capital-stock-tax and estate-tax divisions
of the Miscellaneous Tax Unit as regards data furnished the respective
units, which facilitates the audit of returns for the three taxes.
Prohibition and narcotic enforcement
On April 1, 1925, by a reallocation of duties, there was placed under
one assistant secretary the supervision of the Coast Guard, the
Customs Service, and the Prohibition and Narcotic Unit, all of
which are more or less directly concerned with the enforcement of
the national prohibition laws, particularly as regards the smuggling
of liquor. This has enabled the department to inaugurate a degree of
cooperation between these three services which has materially increased their effectiveness. While there can be no accurate measure
of the results accomplished, it is evident t h a t a marked reduction
has been made in smuggling, particularly on the North Atlantic seaboard, where these violations were most flagrant.
The attention of the department has been concentrated upon a
reorganization of the Prohibition Unit, which is now just reaching
completion. The fundamental objects of this reorganization were,
by decentralization, to bring the administration of the law closer to
the people, to place squarely upon field officers in charge the full
responsibility for law enforcement in their districts, and to set up
a form of machiner}^ which would bring about closer and more effective cooperation with the Department of Justice.
^
To effect this the Federal judicial district was accepted as the
geographical unit of organization, and in each Federal judicial dis-




SECEETAEY OF T H E . TEEASUEY

85

trict a group chief was designated for the prohibition forces and
instructed to perform his work in the closest possible cooperation
with the Federal, district attorney. These Federal judicial districts
were then arranged into more or. less homogeneous groups, to be
designated as Federal enforcement districts, and placed under a
prohibition administrator. This administrator has been given full
authority to administer the laws and to select his own personnel
and is held responsible for results. Matters of policy, regulation,
and uniformity of requirements in the permissive field are regulated
from headquarters, which maintains a close supervision over the
work of the administrators.
. Through the successful efforts of the Department of State, we
have recently put into effect, along the northern border, regulations
bearing on smuggling, which have been agreed upon with Canada.
A similar treaty has been negotiated during the year with Mexico,
and another is in process of negotiation with Cuba. These will
render the efforts of the department to prevent smuggling mor
effective.
Amended regulations governing the control of industrial alcohol
have been promulgated, which place this control squarely in the
hands of the prohibition administrators. Additional anvendments,^
new regulations, and permit stipulations are in process of completion designed better to control the handling of sacramental wines,
medicinal whisky, industrial alcohol, and cereal beverage with a
view to encouraging legitimate industry and 3^et eliminating these
sources of supply for the illicit liquor traffic.
. I t is the policy of the department to concentrate its efforts against
the sources of supply of illegitimate aicohohc beverages and against
the organized traffic therein, and that this may be done effectively
to encourage in every possible way local law enforcement by States
and communities, thus releasing the Federal agencies from the
necessity-of doing local police work to the detriment of the main
objective.
I t is useless to attempt to prophesy what may be accomplished
under the new organization; it is impracticable to measure accurately
what has already been accomplished; it can only be stated that
vigorous action is being taken to make the law enforcement agencies
as effective as possible. I t is believed that considerable advance has
beeii made along these lines and that a marked advance will be made
when the new organization, policy, and regulations are in full
operation.




86

EEPOET ON T H E FINANCES Prohibition Unit statistics .

N u m b e r of arrests by Federal agents for violation of prohibition
acts
62,747
N u m b e r of arrests by State officers assisted by Federal a g e n t s .
12, 918
N u m b e r of arrests by State officers on information furnished
by Federal agents
1, 471
Amount resulting t h r o u g h fines a n d forfeitures from these
arrests
$5, 208, 2.03. 09
Offers in compromise, t a x on illicit manufacturing, etc
$560, 888. 07
Seized property used in violating t h e law, valued a t
$11, 199, 664. 46
N u m b e r of cases reported involving violations on p a r t of permittees
J
L
2, 283
Gallons of tax-paid whisky withdrawn under p e r m i t s :
1925-__-_
,
1, 923, 537. 1
1924
• 1, 813, 295. 9
1923
1, 754, 893. 0
1922
._!
2, 645, 5 0 6 . 0
1921.-_
.
8, 671, 860. 0
Progress in concentration:
1922—bonded warehouses (before application of concent r a t i o n act)
1
'297
1925—bonded warehouses (30 being concentration warehouses)
58
Approximate n u m b e r gallons of spirits in bond (21,500,000
gallons in concentration warehouses; 5,340,953.5 gallons not
concentrated)
26, 840, 953. 5
Narcotic statistics
N u m b e r persons reported for violations of t h e law
N u m b e r cases tried
N u m b e r of. convictions
Per cent of cases tried resulting in convictions
Cases reported involving minor technical violations or civil
liabilities
•
Special taxes, -fines, penalties, compromises, etc., in connection
with'enforcement of t h e act__
.__ $1,'090,

10, 297
5, 8045, 600
-96.5
27, 535
932. 73^

CUSTOMS

The customs receipts for the fiscal year 1925 exceeded those for
the previous fiscal year by $3,509,679, the total in 1925 amounting
to $548,521,794, and in 1924 to $545,012,115: The value of imports
increased from $3,554,138,268 in 1924 to $3,824,140,000 in 1925.
Drawback payments and refunds of excessive duties also exceeded
those of the preceding fiscal year by $1,229,126 and $282,630, respectively.
The use of forfeited vehicles, as authorized by the act of March
3, 1925, has resulted in the making of a number of seizures. Only 21
automobiles were placed into service during the period between the
passage of the act and the close of the fiscal year, and no forfeited
boats were used by the Customs Service during this j)eriod. Of the




SECEETAEY OF 'THE TEEASUE Y

87

21 automobiles a number were operated only during the last month
of the fiscal year. The total cost of acquiring these machines was
$555, and the expense of operation and maintenance during the
year $2,352, making a total cost to the Government of $2,907.
The appraised value of these automobiles is $8,995, and the appraised
value of the seizures made through their use during the period they
were operated is $37,137.
The public generally is beginning to take greater advantage of
some of the provisions of the tariff act of 1922 as these become
better known. During the year there was a considerable increase in
the number of claims for drawback on the processing of importerl
materials by dyeing, moth proofing, etc., when such materials were
exported. The manipulation, such as cleaning, storing, repacking, or
otherwise changing in condition of imported merchandise in bonded
warehouse for export, was much more extensive than in the past.
There has also been a decided increase in the registration of trademarks with the department for the purpose of preventing the importation, without the consent of the owner of the trade-mark, of merchandise bearing such trade-marks.
The increase in the maximum which may be allowed as compensation to informers in customs cases, provided by the tariff act of 1922,
has stimulated the activities of informers and resulted in the apprehension of many violators of the customs" laws. -Through this means
$707;168 has been recovered during the fiscal year 1925 in connection with which awards amounting to $176,792 were paid. :
This increase in the interest of importers and others in certain
provisions of the tariff act of 1922, the general increase in business,
and the many difficult and perplexing problems arising in connection with the enforcement of the customs laws severely tax the division of customs bep.ause of its hmited,number of eniployees. The
needs of the division of customs properly to care for this increase of
work have been the subject of a thorough investigation and report
by the committee on budget and improvement of the Treasury
Department.
THE COAST GUARD

The record of performances of the Coast Guard during the fiscal
year in its normally broad and lately enlarged field of action is one
of marked distinction, deserving particular notice and commendation.
Doubtless there never has been a time when all the agencies of the
service were so actively, so unceasingly, and so intensively engaged
as they were during the year. I t is a matter of the highest interest
to note that in the great multiplicity of duties now devolving upon
the Coast Guard in connection with the enforcement of the laws
against the smuggling of liquor into the United States along the




88

EEPOET ON T H E FIIS^ANCES

coasts, there has been no lessening of the usual humanitarian endeavor of the service. The most gratifying results have attended the
operations of the service in this direction. During the year the
number of persons saved or rescued from peril was 2,484, being 22
in excess of the preceding fiscal year. The fiscal year 1925 now
holds third place in this form of service since the creation of the
Coast Guard in 1915. This character of work is of first importance
in the Coast Guard, and it is always a source of extreme satisfaction
to the department to know that the various units of the service are
giving a good account of themselves in the saving of human life
from the perils of the sea. The value of vessels assisted, including
their cargoes, was $23,335,875. There were 15,565 persons on
board the vessels assisted. The instances of assistance rendered
during the year by the units of the service numbered 4,402 as against
4,226 in the preceding year. The number of vessels boarded and
examined in the interest of the enforcement of United States laws
was 37,594. The vessels seized or reported for violations of law
were 2,183.
The other duties with which the Coast Guard is charged, aside
from those pertaining immediately to the preservation of life and
property from shipwreck, and rendering assistance to vessels and
persons in distress, include: Special winter cruising on the coast
in the stormy season to afford aid to the distressed navigator; the
destruction or removal of wrecks, derelicts, and other floating dangers
to navigation; maintaining complete readiness for operating as a
part of the Navy in time of war or when the President shall so direct;
extending medical aid to American vessels engaged in deep-sea
fisheries; the protection of the customs revenue, and assistance in
the enforcement of the customs laws; enforcement of law and regulations governing the anchorage and movements of vessels at ports
and other places where Federal regulations concerning such matters
are in effect; enforcement of navigation and other laws governing
merchant vessels and motor boats; enforcement of law to provide for
safety of life on navigable waters during regattas and marine parades;
protection of game and the seal and other fisheries in Alaska; international service of ice patrol in the vicinity of the Grand Banks,
off Newfoundland, to promote safety at sea; examination of applicants
as to their qualifications for lifeboat men, under the seamen's act,
etc. These activities proceeded during the year in a most satisfactory manner, and were of great benefit to all interests concerned.
The Secretary of the Treasury awarded during the year 47 lifesaving medals of honor (12 gold and 35 silver), in recognition of
bravery exhibited in the rescue, or attempted rescue, of persons
from drowning in waters over which the United States has jurisdiction, or upon an American vessel.




SECEETAEY OF THE TEEASUEY

89

I t is very gratifying to the department that, pursuant to its recommendation, the Congress has made provision since my last annual
report for the construction and equipment of a Coast Guard cutter
for duty in Alaskan waters and in the Arctic Ocean to replace the
cutter Bear,
The work of repairing and reconditioning the Coast Guard cutter
Manning, which matter was also a subject of remark in last year's
report, is now well in hand, and it is expected that it will be completed in the early part of the fiscal year 1926.
I t is believed to be appropriate at this time to refer briefly to the
subject of the floating equipment of the Coast Guard. I t is obvious
that the Coast Guard fleet stands in need of enlargement both for
purposes of law enforcement and for the usual, normal operations of
the service, and that to bring it to a satisfactory state of efficiency
and usefulness there should be provided 10 first-class cruising cutters, 25 patrol boats for off-shore duty, 6 vessels of the mine-sweeper
class, and 5 more destroyers, the mine sweepers and destroyers to
be transferred to the Treasury Department by the Navy Department if they can be spared by the Navy.
The Secretary of the Treasury has pointed out in previous reports
the pressing need of additional vessels adapted to the important duty
of saving life and property at sea and along the coasts and in rendering
aid to marine commerce. Whatever need there may have been for
them in the past is certainly increased materially by present-day
circumstances and conditions. The constantly increasing demands
upon the Coast Guard growing out of its varied duties can not be
efficiently and satisfactorily m e t unless further provision is made in
this direction. I regard it as in the interest of economy to build
first-class cruising cutters adapted to the law-enforcement work as
well as to the wreck, rescue, and assistance work of the. Coast Guard.
The matter of service personnel, in part, is one also requiring
attention. While the temporary commissioned, officers as a whole
are giving good service at this time, in the present emergency, considerations of efficiency and a properly organized commissioned personnel require an increase in the regular commissioned officers furnished through the Coast Guard Academy. The present duties of
the service demand the highest grade of officer material and the
training, instruction, and discipline which the academy so fittingly
affords. An adequate force of regular commissioned officers is a
fundamental requisite for the Coast Guard in carrying out its
mission.
The results accomplished by the Coast Guard in the prevention
of the smuggling of liquor from the sea have fully justified the temporary enlargement of the service authorized by the Congress, but
I am of the opinion that to bring the situation under full control




90

.EEPOET ON" T H E FINANCES

throughout the entire coastal waters of the country further resources
of personnel will be required, and the enlargement of the service in
that direction should proceed on permanent lines.
The Congress has placed upon the Coast Guard the duty of preventing the smuggling of liquor into the country along the coasts.
As was anticipated, it has proved to be a work of great magnitude.
The agency of the Government having the work in hand and responsible for the enforcement of the law should not be hampered by the
lack of men or material or by impedimenta of any sort.
.The physical conditions existing at the Coast Guard Academy at
New London, Conn., are in need of improvement. The grounds are
occupied by a number of ill-adapted, ill-assorted, unsuitable buildings.
An institution of the kind maintained for the education and training
of cadets to become commissioned officers of the United States
should not be permitted to lapse into a state of disrepair, which can
but refiect seriously on the service and the Government, and harmfully affect the efficiency and morale of the young men entering the
academy as cadets. The physical conditions at the academy are
not worthy of a national school, nor of. the institution where are
trained all.the yoiing officers of this historic service.
The Coast Guard needs to effect certain improvements in the
coastal communication system and in the radio equipment of vessels.
The importance to the Coast Guard of the most efficient radio equipment is obvious from the very nature of the work of the service.
The Coast Guard representative on the Interdepartmental Radio
Advisory Committee, which; committee has to do with the coordination of the radio business of the Government, has been appointed to
represent the entire Treasury Department.
Generous provision for the recreation, comfort, and amusement of
the enlisted men of the service is very desirable. At a time like the
present no pains should be spared to promote the comfort, contentment, health, and morale of the men. The exacting, arduous, and
dangerous duties.they are called on to perform at this critical period
in the Coast Guard deserve this consideration.
In my last annual report I commented briefly on the provisions
which the Congress had made for the law enforcement work of the
Coast Guard in connection with the. prevention of the smuggling of
liquor into the country along the coasts, and took occasion to assert
that no time would be lost in preparing for the undertaking.. I am
pleased to makcTt of record in this report that no time has been lost
by the Coast Guard that it Was humanly possible to avoid. The
additional equipment authorized, by the Congress for this work is
.completed and now in service, the only exception being a few patrol
boats the delivery of which has been unavoidably delayed. The
whole task, involving as it has the preparation of all physical material,
the reconditioning of 20 old destroyers obtained from the Navy



SECEETAEY OF THE TEEASUEY

91

Department, the itremendous boat; construction work, an achievement by itself, the recruiting of the authorized additional enlisted
personnel and the accomplishment of numberless other important
essential details, has been one of stupendous proportions especially
for a service as small as the Coast Guard. I can not speak too highly
in; expressing my commendation of the Coast Guard for the work
thus done, for the expedition and smoothness with which it has gone
forward, and for the actual concrete results brought about in the
prevention of smuggling. There is a marked diminution in this
illicit enterprise. The Coast Guard is making steady and gratifying
progress in breaking up the smuggling of liquor into the United States
from the sea. I t is only the utmost vigilance on the part of Coast
Guard patrol and picketing vessels that will insure our coasts against
the operations of the rum-running craft, and there must therefore be
no slowing down of the Government's activities. On the contrary,
the Government should leave nothing undone tO: rid our coastal
waiters of this national naenace to the laws of the United States. I
am satisfied t h a t t h e Coast Guard will perform- the duty zealously
and efficiently.
<
,
FEDERAL FARM LOAN SYSTEM

Federal land banks
During the fiscal year ended June 30, 1925, the Federal
land banks closed 42,601 loans, amounting in the aggregate to $136,335,549. Net earnings for the same period amounted to $8^740,003.97,
a portion of which was used to increase reserve accounts from $5,706,900 to $7,544,700.
The Treasury originally subscribed practically all the capital
stock in the Federal land banks. The law provides that this capital
is to be retired out of the proceeds of stock subscriptions by national
farm loan associations. On June 30, 1925v Government capital had
been reduced to $1,513,045. All Government capital has been retired in seven banks.
The national farm loan associations, subsidiary organizations
through which Federal land bank loans are made, increased in number
during the fiscal year from 4,612. to 4,652. The comLbin^d capital
stock in all Federal land banks oh June 30, 1925, amounted to
$52,096,770, of which ^50,137,775 is owned by nationahfarm.loan
associations., and the remainder, with the exception of $445,950, is
owned by the Federal Government.
Joint-stock land banks
During the fiscal year no joint-stock land bank was chartered, and
7 banks were liquidated. At the end of the fiscal year there were 59
Joint-stock land banks in actual operation in all of the States of the



92

EEPOET ON THE FINANCES

Union, except the New England States, Delaware, Florida, New
Mexico, and Montana.
Loans were made by joint-stock land banks during the year to
16,166 borrowers, amounting to $109,305,172.
The combined capital stock of all joint-stock land banks on June 30,
1925, was $38,381,400; reserve, $3,769,792.96; surplus and undivided
profits, $4,619, 553.63.
Federal intermediate credit banks
The 12 Federal intermediate credit banks, authorized by the agricultural credits act of 1923, have been in actual operation practically
two years. Each bank has a paid-in capital of $2,000,000, with a call
upon the Treasury for an additional $3,000,000.
I t has been the policy of these institutions to keep their activities
within the clear intent of the act of Congress, so that direct
loans on commodities or rediscounts of farm paper have maturities of
six -months or more. The following statement indicates the
volume of their business and the extent of their service:
Direct original loans to cooperative marketing associations from
the beginning of operations to June 30, 1925, aggregated $91,181,717.35. This total includes no renewals. Of this sum $66,025,707.62
has been repaid, leaving outstanding at the close of the fiscal year,
$25,156,009.73. These advances were distributed by commodities,
as follows:

'

Tobacco
Cotton
.
Raisins___
Wheat___
Wool
_..^.
;
Prunes
Canned fruit and vegetables;....__.___._
Peanuts
Rice
Broom corn__
Red top seed
.
Olive oil
:.

$38, 662, 406. 09
27,456,006.06
___- 10, 000, 000. 00
6, 317, 120. 07
>. 1, 921, 384. 49
1, 900, 000. 00
3, 242, 062. 18
46B, 895. 00
734,595.86
335, 447. 60
95, 800. 00
50, 000. 00
91, 181, 717. 35

Rediscounts aggregated $72,031,204.49, of which $38,789,372.60
has been repaid, leaving outstanding at the close of the fiscal year,
$33,241,831.89. The agencies through which these rediscounts were
made are classified as follows:
Agricultural credit corporations
National banks
State banks
Livestock loan companies
Savings banks and trust companies




'.
>_

$43, 034, 253. 80
196, 797. 60
3, 128, 461. 53
24,887,909.71
783, 781. 85
72, 031, 204. 49

SECEETAEY OF THE TEEASUEY

93

The Federal intermediate credit banks paid into the United States
Treasury, as provided in section 206, paragraph (&), of the agricultural credits act of 1923, 50 per cent of the net earnings of said banks
for the calendar year ended December 31, 1924, or $528,313.30.
On June 30, 1925, the surplus and undivided profits accounts aggregated $1,336,183.39.
I t is estimated that approximately 46,413 farmers have been
directly served through the rediscount of their individual notes, and
697,614 indirectly served as members of cooperative marketing asso-.
ciations.
Throughout the year the rate of interest on direct loans to cooperative associations secured by staple agricultural commodities has been
43^ per cent, while the rate prevailing on rediscounts has been 5 per
cent.
WAE FINANCE COEPOEATION

. In view of the general improvement in the agricultural and banking situation, and the establishment of permanent agencies-—the
Federal intermediate credit banks—to assist in financing the agricultural and livestock industries, the War Finance Corporation, iji
accord-ance with the amendment of February 20, 1924, ceased to
receive applications on November 30,, 1924, and discontinued the
making of new loans on December 31, 1924.
The corporation, which rendered emergency financial aid to agriculture on a large scale for more than three years, therefore entered
upon the period of liquidation on January 1, 1925, and since that
date only expense advances incident to the liquidation of its assets
and the winding up of its affairs have been made. Under the law, ^
as amended, the time for the payment of any outstanding loan can not
be extended beyond January 1, 1926, if such loan was originally
made on or before January 1, 1923, or beyond three years from
the date upon which such loan was originally made, if such loan
was originally made after January 1, 1923.
On January 5, 1925, the corporation, with the approval of the
Secretary of the Treasury, canceled and retired $499,000,000 of its
capital stock, leaving $1,000,000 outstanding. This was accomplished by the execution and delivery of a check for $499,000,000
drawn by the War Finance Corporation on its account with the
Treasurer of the United States and payable to the Treasurer of the
United States. As the funds of the corporation are kept on deposit
with the Treasurer of the United States, the transaction involved a
book transfer of funds and did not, therefore, affect the cash position
of the Treasury.
, The last annual report indicated the status of the corporation's
operations on October 15, 1924. From that date to December 31,




94

EEPOET ON T H E FINANCES

1924, inclusive', the loans authorized for agricultural and livestock
purposes aggregated $1,940,000, including $47,000 to banking and
financing institutions and $1,893,000 to livestock loan companies.;
Under these and previous authorizations, $77,000 was actually
advanced during that period to banking and financing institutions
and $1,871,000 to livestock loan companies. During the same period,^
the expense advances made by the corporation aggregated $27,000,
while similar advances from January 1, 1925, to October 15, 1925!,)
inclusive, totaled $861,000. Altogether, therefore, the loans and;
expense advances of the corporation during the year ended October 15,)
1925, amounted to $2,836,000.
The repayments on account of the corporation's agricultural and
livestock loans from October 16, 1924, to October 15, 1925, totaled
$32,964,000, of which $19,821,000 was repaid by banking and financ-}
ing institutions, $12,642,000 by livestock loan companies, and
$501,000 by cooperative marketing associations. In addition, the
expense advances were reduced by $752,000, while $10,000 was
repaid on the corporation's war loans, bringing the total repayments'
for the year to $33,726,000.
y Since its creation in May, 1918, the corporation has made advanced
totaling $689,697,000—$306,771,000 under its war powers (including'
expense advances of.$15,000), $85,001,000 to assist in financing'
exports, and $297,925,000 for agricultural and livestock purposes^
under the agricultural credits act of August 24, 1921 (including
expense advances of $903,000). Of the total amount advanced,'
$649,122,000 has been repaid, leaving a balance outstanding oh'
October 15, 1925, of $40,575,000, of which $16,975,000 represents'
war loans (including expense advances of $5,000), and $23,600,000,'
agricultural and livestock loans (including expense advances of^
$151,000).. As stated in the last annual report, all the corporation's'
export loans have been liquidated.
/ '
In many instances, renewals of agricultural and livestock loans were'
included in new applications and t h e funds advanced under the latter
were used, in whole or in part, to retire the outstanding balances.
In such cases the amounts representing renewals have been eliminated,
and only the net additional funds advanced are included in the
figures given above.
/'
The accumulated earnings of the War Finance Corporation on'
September 30, 1925, amounted to $63,090,000.' The impression exists^
in some quarters that this sum represents a profit to the Government
in connection with the operations of the corporation. This, of course,,
is not the casie. The money used by the corporation has been fur-'
nished by the Treasury of the United States and the cost of this money
to the Governnient must be taken into account in determining the
result of the corporation's activities. The losses that may be sus-'




SECEETAEY OF THE TEEASUEY

95

tained by the corporation on the outstanding advances, and the cost
of administering and collecting these loans, also must be taken into
consideration. What the losses will be it is impossible to state until
the business of the corporation has been completely liquidated. It is
apparent, however, that they will not represent more than a small
percentage of the aggregate amount advanced, as only $40,575,000
-out of total advances of $689,697,000 was outstanding on October 15,
and much the greater part of this amount undoubtedly will be
collected.
Taken as a whole, it is estimated that, when the corporation's
affairs have been wound up, the interest received on all of its loans
and investments, including those made during and after the war, will,
after deducting operating expenses and losses sustained, approximately equal the cost of the money to the Government. While
there will be no profit to the. Government, the return of the entire
capital of the corporation to the Treasury, together with the cost of
the money to the Government, will be a very satisfactory result,
particularly in view of the character of the corporation's operations
and the difficult problems that confronted it in extending assistance
to the agricultural and livestock industries.
I t should be pointed out, in this connection, that the smaller part
of the corporation's earnings represents interest on its agriciiltural
and livestock loans, and the expense of making and administering
these loans necessarily has been considerably greater than that'
involved in handling the other business of the corporation. On the
other hand, the larger part of the corporation's income was.derived
from investments in Government bonds and war loans and export
advances made prior to the passage of the agricultural credits act of
August 24, 1921, the expense of administration of which was relatively small.
F A R M E R S ' SEED-GRAIN LOANS

Six applications were filed with the Treasury during the past year
for release from repayment of amounts borrowed from the Government for the purchase of seed wheat, rye, or oats where crops were,
failures, as defined in the act of February 26,.1923, and three applica-:
tions were filed for refunds in accordance with the provisions of the:
act of February 26, 1923. In view of> the small number of applications now being filed and in order to make final settlement of the seed- •
grain loan account, it is again suggested that an amendment to. the act
of February 26,1923, be enacted by Congress, providing that all claims;
for refund under the provisions of the act must be presented on or'
before July 1, 1926.




96

EEPOET

ON T H E

FINANCES

The following table shows the amount of loans, the amount released,
the amount of principal collected, the amount of interest collected,
contributions to the guaranty funds, balance of principal outstanding
uncollected, and the amount of refunds made as of October 31, 1925:

F e d e r a l land
bank

Wichita
St. Paul
Spokane

Principal
collected

Amount
loaned

Principal
released

B a l a n c e of
principal
uncollected

Interest
collected

Guaranty
funds

Amount
refunded
under act
of F e b . 26,
1923

$1, 891,132. 75 $1, 366, 250. 99 $309,986. 22 $214, 895. 54 $75, 378. 57 $246, 564. 45 1 $101,182.00
358, 370 45
67,418. 86 272, 005. 00
18, 946, 59
1, 877. 06
443. 20
39, 785.10
1, 951, 379. 50
10. 361. 03 1. 254. 693. 50 686, 324. 97
478. 30
24.15
4. 200,882 70

' '

1, 444, 030. 88 1, 836, 684. 72 920,167.10 j 77, 733 93

247, 031 80

140, 967.10

1 This amount includes $97 refunded to borrowers who contributed to the guaranty funds in excess of the
requirements of Joint Circular No. 1, dated Aug. 2,1918.
ALLEGED

DUPLICATIONS

OF THE

PUBLIC

DEBT

In report for the fiscal year 1924 some discussion was made of
certain charges alleging duplications of the public debt, which
charges had been investigated by the department and found to be
without any foundation whatever. The charges were investigated
also by a special committee of the House of Representatives. Just
prior to the adjournment of the last Congress three separate reports
were submitted by members of the special committee. Nothing was
disclosed that in any way affected the integrity of the public debt
issues of the United States.
Following the submission of the majority report of the special
committee, the Secretary, on March 3,1925, addressed a letter to the
President commenting on the report. A copy of the Secretary's
letter appears as Exhibit 85, page 342, of this report. A copy of press
release of March 3, 1925, supplementing theletter^to the President,
is attached as Exhibit 86, page, 345.
DEPOSITS

OF GOVERNMENT

FUNDS

While there were no new developments during the fiscal year
ended June 30, 1925, with respect to deposits of Government funds,
a review of the conditions which prevailed throughout the year in
all branches of the depositary system of the Treasury gives further
gratifying evidence of the soundness of the present policies of the
department as to such deposits. This depositary system, as heretofore, embraced, in addition to the Treasurer of the United States,
Federal reserve banks and branches, special depositaries, nationalbank depositaries—both general and limited, foreign depositaries,
and insular depositaries, including the treasurer of the Philippine
Islands. Statements indicating the number of depositaries by classes
and the Government deposits held b y them on the basis of daily




SECEETARY OF THE TREASURY

97

Treasury statements, revised, at the end of the fiscal year 1924 and
at the end of the fiscal year 1925 are <shown in the abstract of report
of the division of deposits on page 433 of this report.
By means of an effective controlling system and the businesslike
method adopted in regulating deposits of Government funds, the
Secretary of the Treasury has been able at the enfl of each fiscal year
for several years past to report .savings effected by reductions in one
or more classes of Government deposits. In this respect the fiscal
year 1925 proved no exception. Consequently, this important phase
of the activities of the Treasury has kept pace with other phases in
the Government's program of economy. This has been accomplished
without impairing in any way the efficiency and usefulness of the
depositary system. As could be expected, the reductions effected
during the past fiscal year are not so outstanding as in some recent
years. Nevertheless, in proportion to the total of deposits such
rednctions do not compare unfavorably; for example, the avera-ge
daily deposit throughout the year with specip-l deposittaries, was
approximately $193,000,000 as against an average of about
$J;98,O0O,OOO during the :fise;al year 1924. The av^^rage daily balance
carried with general national-bank depositaries to the credit of the
Treasurer of the United States was appro;xim:ately 17^000^000; while
during the preceding fiscal year it averaged $7,500,000. Deposits
with foreign and insular depositaries likewise show proportionate
decreases.
While the basic principle underlying all deposits of Gov-ernment
funds is to meet the Government's own necessities in the transaction
of its fiscal business, the conditions governing such deposits are quite
diYexigent. Through the Federal reserve banks and branches and
the general depositaries, including insular and foreign depositaries,
the Treasury transacts ;all of the routine fiscal busiiiess of the Government which is not handled directly by the Treasurer of the United
States. With such depositaries, therefore, are maintained the active
accounts to the credit of the Treasurer. The Federal reserve banks
and branches receive the greater part of the receipts of the Government, and through such banks the larger proportion of the disbursements is made. Because of the immense volume of the business
transacted by such banks°and the constant necessity for the shifting
of funds from one point to another, the balances therewith are not
subject to definite fixation at all times. It may be said, however,
that upo;n the basis of the business transacted these balances are not
excessiye. In the case of general national-bank depositaries, insular
depositaries, and foreign depositaries, which number somewhat over
300 in all, it is possible to measure the Government's requirements
with sufiSlcient accuracy to fix the Treasurer's balances in amounts
proportionate to the business transacted. The depositary accounts
60501--FI 1925t



7

98

REPORT ON T H E FINANCES

of these banks are accordingly analyzed semiannually and the balances
adjusted as the facts warrant, consideration being given to. the business transacted during the months just preceding the analysis, .the
known future requirements, and any special circumstances that may
apply to the individual case. Adjustments are made at other times
during the year as conditions warrant. During the past fiscal year
adjustments in the depositary accounts of general depositaries to the
number of 66 were made, involving a turnover of approximately
$1,800,000 and, as previously stated, a net reduction of about $500,000
in the average Treasurer's balance maintained with such depositaries
during the year.
Deposits of Government funds with special depositaries of public
moneys, under the act of Congress approved September 24, 1917, as
amended and supplemented, are made upon an entirely different
basis from the foregoing. These deposits are, in the first instance,
controlled primarily by two factors: First, the amount of Government securities offered for sale from time to time during the year
in connection with the refunding operations of the Treasury, or to
meet current expenditures in the interval between quarterly tax
payments, and, second, the amount of the depositary bank's subscription to such offerings for itself or its customers for which payment is made by credit. Since the establishment of the special
depositary system, a greater part of all Government deposits carried
with banks have been maintained with special depositaries, and the
balances therewith have fluctuated more broadly than in the case
of other classes of Government deposits. As previously indicated,
the average daily deposits carried with special depositaries during
the fiscal year 1925 were approximately $5,000,000 less than during
the fiscal year 1924.
Deposits carried with general and limited national-bank depositaries of public moneys to the credit of Government officers, other
than the Treasurer of the United States, are not, generally speaking,
subject to control by the Treasury. I n the United States proper,
with few exceptions, these deposits are confined to the official checking
accounts of United States courts and their officers and postmasters,
and the funds are subject to the control of the administrative officers.
The function of the Treasury with respect to this class of deposits is
to provide the required depositary facilities and to '^equire the depositary banks to carry with the Treasury adequate collateral security
for the deposits. During the fiscal year 1925 these deposits carried
with general and limited national-bank depositaries to the official
credit of Government officers, other than the Treasurer, averaged
approximately $21,500,000 as against $21,700,000 during the fiscal
year 1924. I n all there are approximately 1,200 depositaries carrying
deposits of tliis character. During: the past fiscal year changes in




99

SECRETARY OF THE TREASURY

this class of depositaries numbered 376, involving the deposit and
withdrawal of collateral security in the amount of approximately
$14,000,000.,
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 interest received on Government deposits, exclusive of deposits
with special depositaries of public moneys, during the fiscal year
ended June 30, 1925, was $533,896.35. The total amount from this
source received from June 1, 1913, to June 30, 1925, was $17,893,102.88. The interest received on deposits with special depositaries'
during the fiscal year 1925 was $3,863,624.89, and the total amount
received from April 24, 1917, to June 30, 1925, was $65,511,668.86.
Statements showing the revenue derived from interest on Government deposits by fiscal years, and in the case of special deposits b y
Federal Reserve districts, are attached as Exhibits 76 and 77, pages.
323 and 324 of this report.
SECURITIES OWNED BY THE UNITED STATES GOVERNMENT

The statement of securities owned by the Government on June 30,
1925, compiled from latest returns received by the Treasury, shows
an aggregate of $11,106,469,990.90 as against $11,301,313,434.70 on
June 30, 1924, a net decrease of $194,843,443.80. A comparative
summary classification of the respective holdings is as follows:
J u n e 30,1925
Foreign obligations:
Funded under debt settlements
All other

._..

Capital stock of war-emergency corporations
_.,
Railroad o b l i g a t i o n s . . .
CapitaJ stock of P a n a m a Railroad
"..
C a p i t a l stock bf I n l a n d W a t e r w a y s C o r p o r a t i o n . . .
F e d e r a l l a n d b a n k securities:
C a p i t a l stock of Federal l a n d b a n k s .
... .
'. .
Federal f a r m l o a n b o n d s . .
_
C a p i t a l stock of Federal i n t e r m e d i a t e credit b a n k s
Miscellaneous securities received b y W a r a n d N a v y D e p a r t m e n t s a n d U n i t e d States S h i p p i n g B o a r d . . . .
....

J u n e 30,1924

$4, 743, 442, 883. 00
5, 812,317, 438. 93

$4, 587,894, 000. 0&
5, 968,436, 295. 61*

10, 555, 760, 321. 93
55,863,326. 35
316, 300, 324. 29
7, 000, 000. 00
1, 500, 000. 00

10,556,329,295.61?
102, 215,837. 80S
449, 377,995.16»
7,000,000. 00-

1, 513,045. 00
88,885, 000. 00
24, 000, 000. 00

1, 985, 500. 00^
101,885, 000. 00»
24, 000,.-GOO. 00-

55, 647,973. 33

58,519,806.13''

11,106, 469, 990. 90

11,301,313,434.70'

The largest net decrease appears in the holdings of railroad obligations,, and is largely due to sales of equipment trust notes, the obli^
gations acquired under section 207 of the transportation act by the
Director General of Railroads, and payments received on account of
loans made by the Government under section 210 of the transportartion act.
The change in foreign obligations is due to agreements with certaingovernments having been concluded, providing for the funding of
both principal and interest due and payments made on account of
principal during the fiscal year.



100

KEPORT ON T H E FINANCES

The net decrease of $46,352,511.45 in the value of the capital
stock of war emergency corporations was due to the increase in cash
deposits of such corporations with the Treasurer of the United States
treated as ofl^sets against their outstanding capital stock owned by
the Government. In the case of the War Finance Corporation the
amount was $29,502,192.25, for the Emergency Fleet Corporation
$11,398,864.50, and for the Housing Corporation $5,451,454.70.
On Janurary 5, 1925, the War Finance Corporation retired $499,000,000 of its capital stock from accumulated deposits to its credit
with the Treasurer of the United States, leaving $1,000,000 outstanding, against which the corporation had on deposit with the
Treasurer on June 30, 1925, a credit balance of $14,399,565.88.
Under the act of June 3, 1924, Congress created the Inland Waterways Corporation with a capital stock of $5,000,000, aU of which
was, by the provisions of the act, subscribed for by the United
States. Under date of February 14, 1925, a check for $1,500,000
drawn on the Treasurer of the United States was delivered to the
Secretary of War as the first payment on the subscription to the
capital stock of this corporation.
The Federal land banks repurchased during the year $13,000,000
face amount of their farm loan bonds owned by the Government.
No additional calls were made during the year by the Federal
intermediate credit banks for payments on subscriptions to their
capital'stock by the Government under the provisions of section 205
of the agricultural credits act of 1923. In this connection franchisetax payments under section 206 of the act above mentioned, aggregating $528,313.30, were received during the year from the Federal
intermediate credit banks.
The detailed items of the security holdings are shown in Exhibit
48, page 260 of this report.
RAILROADS

Federal control of railroads (for the purposes of accounting) began
at 12 o'clock midnight on December 31, 1917, and ended at 12.01
a. m. on March 1, 1920. As stated in President Wilson's proclamation of December 26, 1917, the roads were taken over by the Government as a war measure. The return of the railroads on March 1,
1920, to their owners was directed by President Wilson in his proclamation of December 24, 1919. I n the interval the railroad situation
was carefully considered by Congress and the transportation act,
1920, dealing with the various problems connected with the termination of Federal control, was finally passed just as Federal control
came to an end. The act was approved February 28, 1920. I t is the
transportation act, 1920, as amended, with which the operations of
the Treasury in connection with railroads are now chiefly concerned.




SECRETARY OF THE TREASURY

' 101

The Treasury in addition holds for account of the director general
a substantial amount of railroad securities acquired by him.
From the time of the Civil War the only financial aid that had been
granted b}'' the Federal Government to the railroads of this country
was in the form of bonds issued in the years following the close of
the war to help the transcontinental roads extend their lines to the
Pacific coast; $64,623,512 principal amqunt,-of, these bonds were
issued under the authority of the acts of July 1, 1862, and July 2,
1864. All of these bonds have since been paid, the Government
being reimbursed for its expenditures through transportation services
rendered by the railroads, through a share in the net earnings of t h e
raihoads, the operation of sinking funds established by the railroads,
the foreclosure and sale of the railroad properties and through cash
settlements. The entire indebtedness so incurred has been settled
except that due from the Central Branch, Union.Pacific Railroad
which on June 30, 1925, amounted to $3,482,833.23 of which $1,600,000 represented principal and $1,882,833.23 interest accrued and.
unpaid as of that date.
In his report to the President, dated January 19, 1925, the Hon..
James C. Davis, Director General of Railroads, estimated the total
cost to the Government on account of the 26 months of Federal
control and the 6 months guaranty perioci (sees. 204 and 209 of the
transportation act, 1920, referred to below) at $1,674,500,000.
I t appears that the estimate will prove to be substantially accurate.
According to the records of the Treasury the net cash outgo on
account of^ Federal control to June 30, 1925, amounted to $1,799,920,783;92. If the principal amount of obligations of carriers acquired by the director general and held by the Treasury on the above
date is deducted, the net cost will be $1,664,683,783.92. (See Exhibit
47, p. 259.) Approximately $9,000,000 must yet be paid under the
provisions of septions 204 and 209. The (estimate, however, does not.
take into consideration the difference between interest costs on funds
borrowed by the Government for railroad uses and the interest received on obligations acquired by the director general.
For a full report of the operation of the railroads during the period
of Federal control and of the adjustments of claims of carriers made
by the Director General of Railroads up to December 31, 1924, see
'^Report of the Director General of Railroads: 1924."
The total principal amount of railroad obligations owned by the
Government on June 30, 1925, which were acquired under the Federal control act and the transportation act, 1920, as amended, was
$316,300,324.29, as against $449,377,995.16 on June 30, 1924. During the fiscal year ended June 30, 1925, the Treasury received from
the Director General of Railroads additional obligations of ,carriers
aggregating $5,119,000 principal amount acquired under the provi^
siohs* of section 207 of the transportation act, 1920, as amended.




102

REPOET ON T H E FINANCES

During the same period the principal amount of obligations of carriers was reduced by $138,196,670.87, a net reduction of $133,077,670.87. The substantial reduction of obligations held was chiefly
due to sales made by the director general of equipment trust notes
acquired under the Federal control act and the act of November 19,1919,
and obligations acquired under the provisions of section 207 of the
transportation act, 1920, as amended. Due to the improved credit position of some carriers and also on account of easier money conditions,
bankers found it possible to purchase a substantial amount of these
obligations and resell them to the investing public. There were also
:a few carriers which were, able to refinance in the investment market
•at rates better than 6 per cent their outstanding loans under section
210 of the transportation act. This brought about a considerable
reduction in the principal amount of obligations of this class held by
the Government.
For a detailed statement of the holdings of railroad obhgations on
June 30, 1925, see Exhibit 48, page 260 of this report.
On the basis of the daily Treasury statements the net cash receipts
on account of railroad obligations during the fiscal year total receipts
less total expenditures amounted to $136,706,428.45, as against the
•estimated net receipts of $88,266,511 included in the Budget, an
increase over the estimate of $48,439,917.45. The total receipts from
railroad securities during the fiscal year were $143,91 l,420.98y -of
which $121,131,682.54 was bn account of principal and $22,779,738.44
on account of interest. The total net expenditures during the fiscal
year were $7,204,992.53.
^
'
Under the transportation act net payments made during the fiscal
year for reimbursements of deficits under section 204 were $720,967.66, net guaranty payments under section 209 were $22,925,984.01,
while no new loans were made under section 210. The total payments by the Railroad Administration during the fiscal year of
$5,479,372.25 were more than offset by receipts of $21,921,331.39,
leaving excess receipts, on account of Federal control of $16,441,959.14.
Some carriers, made cash payments to the director general on account
of final settlements with him instead of funding their indebtedness
through delivery of their obligations.
During the period from July 1 to October 31, 1925, the proceeds of
railroad securities received by the Government amounted to $11,738,822.21, while net expenditures were only $2,306,282.37, an excess of
receipts for the period amounting to $9,432,539.84. Of the $11,738,822.21 received, $5,331,038.70 was on account of principal and
$6,407,783.51 on account of interest.
The payments under sections 204, 209, and 210 of the transportation act, 1920, as amended, are made by the Treasury in accordance
with certificates issued by the Interstate Commerce Commission.
The payments are summarized below.



SECRETARY OF THE TREASURY

103

Section £04
This section provides for reimbursement of deficits of the so-called
^^ short-line " r a i l r o a d s during the period, of Federal control. In
making payments the Treasury is, required, upon 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 systems under Federal control, and
payable to his agent, the Director General of Railroads.
From November 1, 1924, to October 31, 1925, $725,384.02 was
paid, $681,352.48 to the carriers directly, and $44,031.54 to the
Director General. Total payments up to October 31, 1925, amounted
to $10,160,739.01, $8,260,968.88 of which was paid the carriers directly and $1,899,770.13, to the Director General. (See Exhibit 44,
p. 256.) The Interstate Commerce Commission has estimated
the total amount payable at approximately $15,000,000, leaving an
estimated balance yet to be paid of $4,839,260.99.
In the annual report for 1924 it was stated that the Midland Railway Co. was indebted to the United States in the amount of $33,861.93
and the Randolph & Cumberland Railway Co. in the amount of
$13,586.31, by re.ason of overpayments under this section. The assets
of these carriers have been sold by receivers appointed by the court
and the entire proceeds devoted to the payment of claims prior to
the indebtedness to. the (jrovernment. : The indebtedness of $5,361.54
of. the Tex;a,s State Railroad arising out of an overpayment under this
section, referred to in the last annual report, has not. been paid.
' "
"

'^

:'

^ •' Section 209

'

'^'

This section provides for the guaranty of net railway operating
income during the six months' period immediately following the termination of Federal control on March 1, 1920. .
From November 1, 1924, to October 31, 1925, there was paid to
carriers/under the provisions of this section $24,344,221.94, making
total payments up to October,31,1925,.of $531,861,907.52. Final payments have been made to 397 carriers out of 676 accepting the guaranty. According to. the estimate of the Interstate Commerce Commission the total: amount payable will be $536,000,000, leaving an
estimated balance to be paid of $4,138,092.48.
From November 1, 1924, to October 31, 1925, carriers have paid
into the Treasury on account of excess earnings during the guaranty
period, pursuant to the provisions of paragraph {d) of this section,
the sum of $189,944.79. Total receipts up to October 31, 1925,
aggregated $446,075.29 against the latest estimate of the Interstate Commerce Commission amounting to $2,000,000, leaving an
estimated balance stUl to be paid to the United States of $1,553,924.71.




104

REPORT ON THE FINANCES

The Interstate Railroad Co. is indebted to the United States as of
October 31„ 1925, in the amount of $194,882.31 on account of excess
earnings during the gtiaranty period, which has' not yet been paid
into the Treastlry as required by the statute. The indebtedness of
the Yreka Valley Railroad Co. of $562.52, listed in the last annual
report, has been paid by the carrier. The claim of $6,818.84 against
the Mammoth Cave Kailroad Co., also referred to in the annual
report foi* 1924, was disponed of by the Interstate Commerce Commission in its report of May 6, 1925. The anaended report of the
commission was to the effect that the road was not a carrier within
the scope of the provisions of paragraph (a) of section 209 of the act..
The following is a list of carriers indebted to the United States as
of October 31, 192'5, b y reason of overpayments under the provisions'
of paragraphs (gr) and (A) of this section:
Atlanta & St. Andrews Bay R. R. Oo
__..____:
$13,086.56'
CMcaigo, Indianapolis & Louisville Ry. Co
198, 4S4. 95
Fort Dodge, Des Moines & Southern R. R. Cb
...
69, 065i 55
Great Northern Ry.Co.^.__-.._—._.^._------_:.__--...__^--.- 1^321, 112.69
Minneapolis & St. Louis R. R.. Co., receiver.____.____.•_....,...._
292, 022;.23
Missouri & North Arkansas R. R. Co., receiver;
_ T. ^ _
41,_ 375. 46
Nevada Copper Bel£ R. R. Co., receiver
_._
.
3, 2525. 44'
Northerii Pacific? Ily. Co. sind sufesfdiafids._.___.
1, 269, 905. 20
Total...,....:_

.__,j__........_..._-....._...-___._

3j208v;278.08

The Chicago, Indianapolis & Louisvine R d l w a y Co.; Fort DodgCj
Des Moines & Southern Railroad Co.; Great Northern Railway Co.;
and the Northern Pacific Railway Ca. and its subsidiaries' h a r e not
agreed to accept the findings of the Interstate Commerce Commission and have requested rehearings on their claims which are now
pending before the commission.:
The claim reported in the annual report for 1924 against the Gulf,
Texas & Western Railway Co., which amounted t c $12,439.57, has
been paid by the carrier; The claim against the Peoria Railway Terminal Co. for $9,650.04, also reported, was disposed of by the Interstate Commerce Commission by canceling its certificates certifying
the amount due the United States.
A detailed statement showing partial and final payments to carriers and amounts received from carriers under this section from
November 1, 1924, to October 31, 1925,^ is attached as Exhibit 45>
page 257.
Section 210
This section established a revolving fund of $300,000,000 to be
used for loans to railroads authorized by the Interstate Commerce
Commission under the conditions set forth in the statute and also
for paying judgments, decrees, and awards rendered against the
Director General of Railroads.




105

SECRETARY OF TH]E TREASURY

No loans were made to railroads under this section of the act from
November 1, 1924, to October 31, 1925. The total loans made up
to October 31, 1925, aggregated $350,600,667 and were divided among
84 railroads. Repayments on account of the principal of these loans
from November 1,1924,to October 31,1925, aggregated $9,984,598.79,
of which $7,756,998.79 represented payments on account of principal in advance of maturity. Total repayments of principal up to
October 31, 1925, amounted to $171,907,572.71. Payments received
on account of interest on these loans from November 1, 1924, to
October 31, 1925, aggregated $10,432,045.41; total receipts on account of interest up to October 31, 1925, amounted to $55,472,364.32.
i^ detailed statement showing the total loans to October 31, 1925,
and repayments on account of principal and interest up to October
31, 1925, is attached as Exhibit 46, page 258 of this repprt.
Advances made by the Treasury to the Director General of Bailroads from November 1, 1924, to October 31, 1925, for the piirposes
authorized in the statute aggregated $2,000,000, making the net total
of such advances up to October 31, 1925, amount to .$30,924,539.88.
The balance to the credit of the revolving fund at the close of
business on October 31, 1925, was $145,854,750.15,
. From November!, 1924, to October 31, 1925, S railroads.paid their
loans in full and 18 reduced their loans. Nine have defaulted in
interest payments, and 3 have.defaulted in payments due on account
of principal. The foUowing is a list, as of October 31, 1925, of the
carriers in default in respect to loans made under this section;
Name of carrier

Principal

Atlanta, Birmingham.& Atlantic Railway C o . . . , , , , , — - . - . .
$80,000. .00,
Gainesville & Northwestern Railroad Co
.
.'
Kaiisas City, Mexico.& Orient Railroad Co. .(receiver)...,.I 2,500,0,00.00,
Minneapolis & St. Louis Railroad Co .
. ..
Missouri ,& North Arkansas Railway Co.,
"^^"ivmoo'
Salt Lake & Utah Railroad Co
Viriginia Southern Railroad Co
_...^..^..Waterloo, Cedar Falls & Northern Railway Co
Wichita Northwestem.RaUway Co
,--_
Total

.-.,_-.,-..

,-.,,—,-.

-—

2,595,700.00

Interest

Total

$42,243.7,2, $122,243.72
11,250.00
11,250.00
492,595.83 ,2,992,095.83
185,387.00
185,387.00
364,718.. 72
3.64,718.72
52, 422.55 '
68,122. 55
3,420.00..
.3,420.00
302,400.00
302,400.00
34„357.50.
34,357.50
1,483,295.32^

4,m3,995.32

CHECKING ACCOUNTS OF GOVERNMENT CORPORATIONS AND AGENCIES

The United States Shipping Board Emergency Fleet Corporation,
the United States Housing Corporation, the War Finance Corporation, the several Federal land banks, the Railroad Administration,
and the United States Sugar Equalization Board (Inc.), have maintained checking balances with the Treasurer of the United States
during the year, in the manner outlined in previous annual reports
of the Secretary of the Treasury.
The following table shows the amount of checks on these accounts,
including similar accounts formerly maintained by the United States
60501—FI 1925t



8

106

REPORT ON T H E EINANCES

Grain Corporation, the Russian Bureau of the War Trade Board,
and the United States Spruce Production Corporation, paid by the
Treasurer from the dates of the establishment of the account to
October 31, 1925, and the balances on deposit with the Treasurer
on the latter date:
Checks paid by the
Treasurer of the
, United States

Emergency Fleet Corporation
United States Housing Corporation..
War Finance Corporation
United States Grain Corporation.!...
Russian Bureau of the War Trade
Board...
Federal land banks •
Railroad Administration
United States Sugar Equalization
Board (Inc.)
United States Spruce Production
Corporation ._

Period

$7,477,732,382.79
165, 638, 721. 37
3,935, 653,686.80
933, 967, 229. 41

Feb. 28,1918-Oct. 31,1925-...
July 27,1918-Oct. 31,1925....
June 2,1918-Oct. 31,1925
Oct. 31,1918-Feb. 2,1922

$43,965,499. 76
728, 815. 26
22,171,060. 28

(»)

13,333,773.99 Nov. 30,1918-Sept.'28,1920__
36,192, 018. 36 June 2,192(>-Oct. 31,1925
1, 860,219, 600.00 Apr. 13,1918-Oct. 31,1925....

42, 603, 949.04

2, 482,476. 33 Apr. 7,1922-Oct. 31,1925

12, 954,780.46

(2)

6,035, 275! 15 Dec. 20,1921-Apr. 14; 1924-. 14,431, 255,064. 20

1 Closed Feb. 2,1922.

Balances with
the Treasurer of the
UnitedStates
Oct. 31,1925'

2 Closed Sept. 28,1920.

•

(3)

122,424,104.78
8 Closed Apr. 14,1924.

The plans worked out by the Treasury for handling these accounts
have operated to the entire satisfaction of all concerned. The
results have been to assure absolute security to the funds and to
save withdrawals of large amounts from the Treasury until actually
needed to pay obligations of the Government, thus reducing the
amount of Government borrowing^ with consequent savings in
interest charges.
THE MINTS

The three coinage mints and eight assay offices were in operation
throughout the year. The lessened demand for subsidiary and minor
coins released the facilities of the mints for a larger part of the year
to the coinage of gold and standard silver dollars. Gold coins
valued at $250,335,000 and standard silver dollars amounting to
$18,308,000 were manufactured. In addition, subsidiary silver coins
valued at $8,221,404 and minor coins amounting to $1,746,540
were made.
The value of domestic coinage executed exceeded that of the fiscal
year 1924 by $98,522,484. This was due largely to the unusual
volume of gold coinage.
Foreign coinages amounting, to 12,723,000 pieces were manufactured for Guatemala, Peru, Poland, Salvador, and Venezuela.
During the year,under review Congress authorized the issue of six
special coins and one medal to commemorate various historical
events. :• •,• '••• -.: r:, i , ^ . • . , . . . , : i . , ' . • •,!
, Gold amounting to $211,053,392 was received by the mint establishments during the fiscal year 1925.



SECRETARY OF THE TREASURY

107

The expenditures of the Mint Service during the .fiscal year 1925
amounted to $1,846,646.36, and the income which was derived from
charges on purchased bullion, recoveries in the various.operations on
the precious metals, and seigniorage amounted to $9,108,120.73.
SILVER

Purchases of silver were limited to the coraparatively small amounts
in gold deposits. Deliveries ofsilver purchased under the terms of
the act of April 23, 1918, were completed in October, 1924, and
17,908,000 dollars remain to be coined from the silver purchased
under the terms of the act cited.
,
'..
The price of silver ranged from $0.66125 on July 1,1924, to $0.72375.
per ounce on October 9,, 1924. The average price of silver for the
fiscal year was $0.68813 per ounce, against $0.64517 for the fiscal year
1924. ,
^ •
....The annual examination of the books of the coinage mints and assay
office at New York showed that the coin and buDion charged to the
respective officers were properly accoimted for.
The Assay Commission appointed by the President each year met
at the mint in Philadelphia in February, as required by law, and founds
upon actual test that the pyx coins from each of the mints were
within the legal requirements as to weight and fineness.
PUBLIC HEALTH SERVICE

The Public Health Service has continued to operate efficiently,
completing the one hundred and. twenty-seventh year of its existence.
Among its duties are the extension of relief, the, application of research
to problems involving the cause and prevention of, disease, the prevention of the introduction of quarantinable diseases, the prevention,
of the admission of diseased aliens from abroad, the control of commuhicable diseases within the.United States,, the prevention of the,
spread of these from one State to another and to foreign, countries,
the safeguarding of biologic products used in the prevention and
treatment of disease, and other miscellaneous duties.
The investigations of • diseases of man have been continued in
accordance with the program previously adopted. This included
studies of cancer, clonorchiasis, leprosy. Rocky Mountain spotted
fever, tularaemia, pellagra, epidemiological investigations of diphtheria, the effects of endemic goiter, the accumulation of data on the
prevalence and means of spread of influenza and minor respiratory
diseases, and further efforts to work out methods for reducing the
amount of malaria. The general topics of industrial hygiene and
sanitation, child hygiene, mental health, stream pollution, public health
. administration, and milk in its relation to health and disease have
been studied with good results. Reports of findings and recommendations have been published and furnished to interested persons.



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REPORT ON THE FINANCES

The examination of biologic products and inspections of establishments desiring licenses have been made as in former years by the
Hygienic Laboratory.
The last annual report of the Surgeon General called attention to
the probability that bubonic plague would reappear in one or another
of our ports and emphasized the possibility that the reservoir of
plague existing in ground squirrels in certain parts of California
would lead to rat infection and thence to human infection in cities.
Rodent plague did reappear in New Orleans, La., and Oakland, Calif.,
and, upon the invitation of the State and loca,] authorities, cooperative
control measures were 'immediately inaugurated by the Surgeon
General, with the approval of the Secretary of the Treasury, and the
disease was promptly suppressed, no human cases having appeared
in these cities.
Unfortunately, there had occurred in Los Angeles a widespread
rodent infection and plague had claimed a number of human victims
in that city before it was known by the Surgeon General that
Los Angeles was infected, the first intimation that plague was present
in Los Angeles coming from private sources.
.Immediately upon the receipt of authoritative information of the
existence of plague in Los Angeles the Surgeon General tendered the
assistance and cooperation of the Federal Government in combating
t h e disease, notified foreign countries, and inaugurated measures to
prevent the spread of the disease to other States and to foreign countries. The city of Los Angeles generously provided funds for the suppression of the disease, but in the early part of the work the tender
of aid from the Federal Government was not accepted, the State
board of health preferring to attempt the eradication of the disease
with the means placed at its disposal by the city authorities without
other aid. Shortly before the close of the fiscal year the Surgeon
General was asked by the city authorities to assume control of all
plague-suppressive measures in Los Angeles with a view to facilitating
the work and thereby removing the necessity for quarantine measures directed against San Pedro, the port of Los Angeles. While
the request of the municipal authorities was not concurred in by the
State board of health, it was believed that participation by the United
States Public Plealth Service, was necessary in order to msiire t h e
prevention of the spread of the disease to other States and to safeguard other countries in accordance with the terms of our international agreements. Accordingly, Asst. Surg. Gen. Rupert Blue assumed charge on June 9, 1925, with sufficient service personnel to
enable him to conduct adequate supervision.
At the end of the fiscal year the work was progressing satisfactorily
and an early relief from quarantine measures is anticipated.




SECRETARY OF THE TREASURY

109

During the month of December an excessive prevalence of typhoid
fever was recognized in Chicago, New York, and a number of other
cities. An unusual feature of this incidence was the fact that an
undue proportion of those who were stricken were persons of wealth
or associated with wealth, and many we're persons of prominence.
An investigation rapidly conducted by the Public Health Service
sin a number of cities simultaneously led to the definite conclusion
that the increased prevalence of typhoid fever was due mainly to
infected shell oysters distributed by a producing company in the
vicinity of West Sayville, N. Y.
The popular apprehension about the safety of oysters as food
resulted in a marked reduction in the industry, ranging from 25 to
75 per cent for different producing areas. The consequent financial
loss was large and serious suffering resulted from the deprivation of
wages among the thousands of persons dependent upon the industry
for a livelihood.
On February 19, 1925, the Surgeon General called a conference of
State and municipal health officials, members of the shellfish industry,
and representatives of other governmental agencies concerned, to
consider measures for insuring the future safety of shellfish and the
rehabilitation of the industry. This conference, consisting of approximately 150 representatives, adopted resolutions to serve as a basis
for the permanent control of shellfish pollution and called on the
Public Health Service to assume an active part in the carrying out
of their provisions. An appropriation of $57,600 was later made by
Congress to enable the Public Health Service to do this work.
The Surgeon General as Director of the Pan American Sanitary
Bureau, and as a representative of the Government of the United
States, the Assistant Surgeon General in charge of the division of
foreign quarantine as Vice Director of the Pan American Sanitary
Bureau, and Surg. R. H. Creel, also representing the United States
Government, attended the Seventh Pan American Sanitary Conference, held at Habana, Cuba, November 5-15,1924. At this conference
. the Pan American sanitary code was adopted, subsequently ratified
by the United States Senate, and approved and promulgated by the
President of the United States. I t is believed that this treaty will,
have a profound bearing upon the. administration of quarantine in
the Western Hemisphere. By its terms, when ratified by the signatory powers, the Pan American Sanitary Bureau is made the central,
cooperating agency of the various member Republics. This convention is designed to establish minimum standards in the treatment of
vessels arriving at quarantine from a foreign port, tp promote thefree interchange of information, and to insure cooperation in these
and other measures for preventing the spread of communicable
diseases among the countries of the Western Hemisphere. This.




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REPORT ON T H E FINANCES

treaty has attracted marked attention throughout the sanitary
world, and will doubtless be given due consideration by the International Sanitary Conference of Paris at its next meeting. The
carrying out of the terms of the Pan American sanitary code should
prove a measure of inestimable value in the promotion of the public
health and the facilitation of international cominerce.
Early in June of this year, with the concurrence of the Department
of State, an officer of the Public Health Service was detailed as
sanitary advisor to the Government of Chile, to assist in the reorganization of the health department of t h a t Republic.
Arrangements have been made with the health authorities of
Great Britain, certain ports in Ireland, Canada, and Australia, by
. which vessels are fumigated in accordance with the United States
quarantine regulations, thereby rendering it possible for the Public
Health Service to accept the certificates of those fumigations when
properly visaed by American consular officers
Upon the recommendation of the Secretary of the Treasury, Congress provided for the exemption from the operation of the quarantine
regulations of vessels plying between Canadian ports and ports of the
United States when conditions warrant such exemption. I t is gratifying to note the cordiality and cooperation between the health authorities of Canada and the United States.
Six persons suffering from smallpox, seven suffering from leprosy,
and one from bubonic plague arrived at quarantine during the year;
in addition, plague-infected rats were detected on two arriving vessels. An outbreak of smaUpox at Vancouver, British Columbia,
made it necessary to require the vaccination of all unprotected persons leaving that city for the United States.
At no time in the recorded history of yellow fever has the incidence
of this disease been so low and there has been no detention of passengers and crews on account of yellow fever during the fiscal year,
the first time in the history of our quarantine system.
Cholera was reported in many parts of Asia, but with the exception of European Russia, this disease was not reported from other
world divisions, although there has been a marked increase in the
number of cases of this disease in India over last year.
Plague continues to be widespread and reports of this disease were
received from 49 countries or dependencies, including cases at many
important ports and shipping points. Nine countries in the Western
Hemisphere, including the United States, reported plague. More than
400,000 deaths from this disease were reported in Asia, and there is
little doubt that many more occurred.
Following a memorandum prepared by the Surgeon General, representatives of the State, Treasury, and Labor Departments met in
conference and agreed upon a system of preliminary inspection at




SECRETARY OF THE TREASURY

111

ports of embarkation, of aliens destined for ports in the United States.
This plan has been concurred in by Great Britain and the Irish Free
State, and is in operation in ports of those countries. I t is known
to be favored by other nations of Europe. The advantages of this
arrangement are obvious, and if appropriations for additional personnel are made available, it is believed advisable to extend this
plan to other countries requesting it, at least to such ports as are
obviously adapted to its application.
The work of securing and publishing reports of the diseases of
man both in the United States and abroad has been successfully continued during the year, but with a clerical force in the bureau that is
inadequate for the proper utilization of these fundamental data. A
plan for making the collection of this important information more
effective received the unanimous approval of the State health officers
in their annual conference with the Surgeon General in June, 1925.
Preliminary reports of births and deaths in the United States
for the calendar year 1924 indicate a slightly higher birth rate and
a lower death rate than for the calendar year 1923. Reports so far
received indicate a death rate of 11.9 per 1,000 in 1924 as against
12.4 in 1923. An important item in the record of deaths for the
year 1924 is the reduction in the number of deaths of infants under 1
^year of age from 77.7 per 1,000 births in 1923 to 71.9 in 1924. But
little change is apparent in the number of deaths of mothers as a
result of causes incident to childbirth. The deaths from accidents
due to the operation of automobiles has risen from less than 1 per
100,00b in 1906 to nearly 15 per 100,000 in 1923, and incomplete
reports for 1924 indicate a still higher rate for that year. This
means that more than 16,000 people per annum are being killed
by automobiles at the present time.
The death rate for diphtheria in the registration area has dropped
from 43.3 per 100,000 in 1900 to 12.1 in 1923. Provisional reports
from 35 States indicate a still further reduction in 1924, and with
improved methods of treatment and demonstrated methods of
prevention the hope is expressed that this disease may be considered
to be one that can eventually be practically eliminated from our
population, provided parents can be induced to protect their children
by proven methods of immunization.
Studies of goiter made by the Public Health Service have so far
revealed no deleterious effects on the mentality of goitrous persons.
Effort is being made to evaluate the prophylactic measures which are
being used to combat this disease.
Although cases of malaria in the United States are t e r j inadequately reported, the death rate from this disease shows that in
certain parts of our country malaria is still quite prevalent and a very




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REPORT OK THE FINANCES

deterrent factor in the economic development of the communities in
which it exists. The death rate from malaria fluctuates from as
low as 0.1 per 100,000 or less in certain States to as high as 38.2 per
100,000 in others.
Preliminary reports for the calendar year 1924 indicate a still
further reduction in tuberculosis, but reports for the first six months
of 1925 suggest a slight general increase in typhoid fever. No great
change is indicated in the trend of measles, scarlet fever, whooping
cough, and pneumonia.
For a number of years there has been a small but steady increase
in the number of deaths from heart disease, diabetes, and cancer, in
striking contrast to the general i'eduction seen in the rates of most
other diseases.
The United States Marine hospitals and other relief stations furnished t h e largest amount of hospital and medical treatment to
merchant seamen since the inception of this work, 127 years ago.
The increase over the previous year in total amount of relief furnished
was 8.9 per cent in hospital days and 22.3 per cent in out-patient
transactions. Not only are merchant seamen applying in greater
numbers, commensurate with the growth of merchant shipping, the
poits, and the Nation, but greater demands are being made for medical services by the Coast Guard, Employees' Compensation Com-,
mission. Bureau of Pensions, Civil Service Commission, Lighthouse
Service, Steamboat Inspection Service, and other designated governmental agencies, as well as for the lepers, who are being assembled
in steadily increasing numbers at the National Leper Home (Marine
Hospital No. 66), Carville, La. The hospital at Ellis Island was
operated as heretoforej for the Department of Labor, detained immigrants constituting the majority of patients.
A number of the most important marine hospitals are very old
structures in dilapidated condition, too small for the demands,
obsolete in type, and so inflammable as to present serious hazards
to the lives of helpless inmates. The hospitals at New Orleans and
San Francisco should be rebuilt. Fire-resisting wards of modern
character are needed at several other hospitals to replace frame buildings and increase capacity. Nurses' homes and other quarters are
required as a measure of economy to reduce rentals and to increase
efficiency.
Attention is invited to my letter dated February 20, 1923, with
which was transmitted to the Congress a list giving estimates of cost
of new construction, improvements, and repairs required to enable
the Public Health Service to function efficiently and economically.
The need for these improvements is cumulative.
The work of the division of venereal diseases during the past year
was carried on in compliance with specific provisions of law, which




SECRETARY OF THE TREASURY

113

impose the duties for the study, investigation, and prevention of
venereal diseases and for cooperating with the State boards of health
in their control. The activities of the preceding year have been
continued and a special effort has been made to stimulate a larger
body of physicians to fortify themselves for the detection of these
diseases and to cooperate actively with the health departments in
the problem of eradicating them.
Si^bscriptions to the publication ^ Venereal Disease Information,''
^
which is prepared by the division for use in its cooperative work with
the State departments of health, have materially increased. This
publication reaches all official and unofficial classes who are especially
interested in the venereal disease problem.
Likewise, the bulletin/'Social Pathology" conveys information on
the socio-economic aspects of the venereal diseases to official non^
medical groups as well as to interested unofficial groups who have
to do with the control of venereal diseases. The printing of this
bulletin by the Government Printing Office and opening it to sub*
scriptions would greatly increase its circulation and effect economy
in its preparation and distribution.
The unusual interest which is being displayed by colleges, high
schools, industries, life insurance companies, etc., bears evidence to
the continued and active public interest in the control of venereal
diseases.
In accordance with provisions in the act of July 1, 1902, the annual
conference of the Public Health Service with State and Territorial
health officers was held in Washington, D. C , on June 1 and 2, 1925,
and was attended by delegates from 30 States and 2 Territories. A
two-day program was carried out in which were discussed a plan for
the establishment of a morbidity area, a State-wide program of milk
control, the routine reporting of county health work, the occurrence of
plague in the United States since the last annual conference and control and measures taken, the practicability and desirabihty of utilizing
the services of advanced and selected medical students during the
summer months in the field of public health, stream pollution as a
public health matter, cooperative measures for the sanitation of
shellfish areas and shucking houses, and a progress report of studies
of administrative health practice. Demonstrations were given to the
officers assembled of the preparations used in the prevention and control of scarlet fever, on narcotic-drug addiction, on tularaemia, and on
methods for the control of smallpox.
Cordial relations and mutual cooperation have existed between the
Public Health Service and other agencies of the Federal, State, and
local governments, and with unofficial civic bodies, perhaps to a
greater degree than ever before. Similar cooperation has also existed
between the service and representatives of our great industries.




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REPORT ON T H E FINANCES

An important research was begun late in the year to determine the
possible health hazards associated with tetraethyl lead gasoline. This
was undertaken after a conference at which interested Government
bureaus, the industry, and labor were represented.
The importance of milk as a food, and the danger that it may convey
disease can not be overestimated. The widest variance has existed in
the methods adopted by State and city authorities to secure a safe and
wholesome milk, hardly any two States or cities attacking the problem
in just the same way. One of the investigations which is being pursued by the Public Health Service is for the purpose of determining
whether it is possible to unify measures for the safeguarding of our
milk supplies. At the close of the fiscal year 1925, mainly through
the efforts of the Public Health Service through cooperation with
State and local authorities, 8 States and 53 cities had adopted
uniform measures for the sanitation of milk.
The total personnel of the service at the close of the fiscal year
was 8,976, which includes 4,285 persons designated as collaborating
epidemiologists and assistant collaborating epidemiologists. These
appointees are nearly all officers or employees of State and local
health organizations, who receive nominal compensation of $1 per
annum for services rendered in connection with the compilation of
morbidity statistics. The total personnel increased somewhat during
the year. The increase was due to a much greater volume of hospital
and relief work; to the reappearance of bubonic plague infection in
New Orleans and on the Pacific coast, for which Congress made a
deficiency appropriation of $165,994; and to cooperative work with
State and municipal health authorities in investigations of shellfish
sanitation, for which a special appropriation of $57,600 was made.
As pointed out in my last annual report, the efficiency of the personnel would be increased and economies effected by legislation
enlarging the permanent commissioned corps of the Public Health
Service, and I have again to invite attention to the recommendations of the Surgeon General with respect to new construction and
repairs of buildings at hospital and quarantine stations, in which
recommendations I concur.
PUBLIC BUILDINGS

There is a pressing need for the construction of Federal buildings
in many communities not already so provided, and for the extension
and enlargement of those Federal buildings in which congestion
exists, due to the growth and expansion of the public business.
There has been no effective legislation enacted to care for the
Government's public building needs since the act of March 4, 1913.
During the interim the normal growth alone of the public business
would have resulted in an overcrowded condition calling for relief




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115

in the Federal buildings located in the larger communities throughout
the country, and the necessity for Federal buildings not already so
provided would have become evident. But the conditions have not
been normal meanwhile. Our entrance into the World War made
necessary the expansion of a number of branches of the public
service occupying space in Federal buildings, and the creation of
numerous other activities of a more or less permanent character.
So far as possible this increased force was given accommodations in
Federal buildings, but in numerous instances, in cities where there
were Federal buildings, the demand for space was in excess of the area
available. The resulting congestion in Federal buildings remains
as a perplexing problem, and the cost of rented quarters continues
;as an uneconomic method of meeting the situation because of the
waste involved of both money and time in the,transaction of business in inadequate and unsuitable quarters.
The extent of congestion in Federal buildings scattered throughout
t h e country became so great, and the need for the enlargement of
many of these buildings was so pressing, that the Postmaster General and the Secretary of the Treasury felt constrained in 1922 to
depart from the policy which had previously prevailed of leaving
the initiative in matters of this kind for the attention of Members
of Congress, and joined in calling to the attention of Congress
specifically some 160 buildings in which congested conditions not
only justified b u t demanded relief. The needed relief has not been
provided with respect to these buildings, and meanwhile the number
of buildings presenting similar conditions has increased. But this
condition is not confined to the Federal buildings scattered throughout the country. I t has its counterpart in the Federal buildings in
Washington, which are inadequate to house the various, branches of
the Government service.
Here at the seat of Government a few only of the executive departments occupy buildings constructed by the Government for their
purposes, and such as are so occupied provide inadequate accommodations. The remaining ones, as well as many of the independent
•establishments not under any executive department, are either housed
in unsuitable and insecure temporary buildings erected to meet emergent war conditions, or are dependent upon private enterprise for
the space they occupy.
In many instances related activities are scattered about the city
in various locations, entailing great loss, delay, and inconvenience
i n the transaction of the public business, and in numerous instances
the valuable records of the Government, the loss of which would be
irreparable, are stored in nonfireproof and insecure structures under
conditions which invite disaster.




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REPORT ON THE FINANCES

Throughout the country there are communities in which Federal
buildings should be constructed, in the interest of economy and in order
that convenient and adequate accommodations not otherwise obtainable for the transaction of the public business may be provided. There
are a considerable number of cases in which the annual rentals paid for
space in which to transact the pubhc business would pay in a few yearsthe total cost of constructing adequate and suitable Federal buildings.
There are other cases in which Federal buildings which can no longer
house aU governmental activities in the respective communities in
which they are located occupy sites which have become so valuable
that they could be readily disposed of for amounts that would
purchase new sites and pay the construction costs of buildings of a
size adequate for those communities.
In view of all the conditions affecting the pubhc-building situation,,
it would be prudent, with a reasonable hmitation upon the amounts,
that might be expended annually, to resume the work of constructing
and enlarging Federal buildings.
At the last session of Congress the so-called EUiott bill was passed
by the House of Representatives, but failed of passage in the Senate.
The legislation then proposed was along lines intended to make
reasonable provision for the immediate public-building needs of the
Government, both in Washington and throughout the country, and
it is believed that, with some changes, to meet conditions w h i c h h a v e
since developed, legislation along similar lines would prove effective.
I t is hoped that provision will be made by Congress at the coming
session which will enable the department to resume construction
work under a reasonable public-building program.
The act of July 1, 1898 (30 Stat. 614), vested in the Secretary of
the Treasury the exclusive jurisdiction and control of all courthouses,
customhouses, post offices, appraisers' stores, barge offices, subtreasuries, and other pubhc buildings outside of the District of
Columbia and outside of military reservations which had been purchased or erected, or were in course of construction, or which might
thereafter be purchased or erected out of any appropriations under
the control of the Treasury Department, and expressly authorized,
the Secretary of the Treasury to take possession of and assign and
reassign rooms therein to such Federal officials, clerks, and employeeswho in his judgment and discretion should be furnished with offices,
and rooms in Federal buildings.
During the fiscal year ended June 30, 1925, 30 Federal buildings
of the foregoing character were completed and occupied, making the
total number 1,310. This figure does not include the 57 marine
hospitals and quarantine stations, each consisting of a number of
buildings, or the score or more of so-called Veterans' Bureau hospitals
constructed since the war and transferred, by authority of law, t a
the Veterans'Bureau.



SECRETARY OF THE TREASURY

_

117

Notwithstanding the continued high construction costs, the Office
of the Supervising Architect expects to be able to get under contract
during the current fiscal year approximately 30 Federal buildings,
the limits of cost for which were fixed by Congress when construction
costs were materially lower than at present. In addition to this
program, that office at the request of other branches of the Government is preparing plans for a large extension of the hospital connected
with the Pacific Branch of the National Home for Disabled Volunteer
Soldiers at Sawtelle (Santa Monica), Calif., and for the Federal
Industrial Institution for Women at Alderson, W. Va.
Under an appropriation of $400,000 provided by the act of April
4, 1924, it was found possible to relieve the congestion in 83 public
buildings at an average cost of $6.20 per square foot. Preparations
were made and plans commenced for relieving congestion in a large
number of buildings under an appropriation of $800,000 contained in
the act of January 22, 1925, and the relief to be effected and saving
of rent accomplished indicate the wisdom of providing this appropriation for this purpose.
For a number of years the demands for additional lock boxes in
post offices in Government-owned buildings have been much greater
than could be met with the limited appropriation provided. A special
appropriation of $100,000 for additional lock boxes was provided in
the act of January 22, 1925, and during the period covered by this
report considerable progress was made in the way of preparatory
work looking to the early installation of this needed equipment. I t
is estimated by the Post Office Department that the entire expenditure for lock boxes, including the cost of installation, will be repaid in
rentals during the first three years, and t h a t thereafter the cost of
the boxes will be repaid every two years. The appropriation provided
is not sufficient to meet all current demands and it is proposed to
submit further estimates for appropriations from time to time until
all reasonable demand for lock boxes is met.
Hospitals
The hospital program of the. Treasury Department under appropriations totaling $26,496,500 was practically completed in 1924,
when the hospital at Castle Point, N. Y., was transferred to the
Veterans' Bureau and placed in commission, although the construction of the recreation building, which was not included in the original
project, was not completed until early in 1925.
The number of hospitals provided under this program is 23, with
a total bed capacity of 8,188. Each of the hospitals comprises a considerable number of buildings, the larger ones providing accommodations for a population approximating 1,000, including personnel, and
involved supplying roads, sidewalks, independent sewage disposal
plants, power plants, lighting systems, fire alarms, telephones, etc.




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REPORT ON T H E FINANCES

With the exception of three, these hospitals were designed and
constructed by the Office of the Supervising Architect. Most of
them were constructed within 16 months after the authorization
and many in less time. In no case was the allotment exceeded; in
fact, after settling all the accounts for construction, equipment,,
freight, etc., it was ascertained that there remained small balances
under most of the hospital allotments, aggregating .approximately
$80,000. Instead of depositing this amount in the Treasury Department as a saving, it was decided upon recommendation of the board
of consultants on hospitalization, with the approval of the President,,
to use this for the construction of a recreation building and assembly
hall at the hospital at Tuskegee, Ala. The contract for this additional building has not yet been awarded. •
An abstract of the report of the Supervising Architect's Office
accompanies this report on page 400 and shows in detail the work of
that office in connection with the construction of public buildingsproper, the provision of additional space in emergent cases, and construction work at Marine hospitals, quarantine stations, and Veterans^
Bureau hospitals.
ADJUSTED SERVICE CERTIFICATE FUND

On January 2, 1925, the Secretary of the Treasury made the
following statement regarding the adjusted service certificate fund
provided for in the adjusted compensation act:
The adjusted compensation act provides for an appropriation on the 1st of
January in each year to the adjusted service certificate fund of an amount^
based upon the American Experience Table of Mortality, which, if kept invested
at 4 per cent compounded annually, would be sufficient to pay the face value
of the adjusted service certificates upon their niaturity in 20 years or upon prior
death of the veteran. The Secretary of the Treasury is authorized to invest
and reinvest the moneys in the fund in interest-bearing obligations of the. United
States and to sell these obligations for the purposes of the fund.
In order that the fund shail be sufficient to meet the payments in accordance
with the plan outlined by the act, it is necessary that the moneys be invested
when received and kept invested until payments out of the fund are required.
No purpose is gained by the investment, of the fund in securities returning
more than 4 per cent compounded annually, since this would simply mean
an accumulation in the fund of more money than was necessary to meet payments.
On the other hand, if less than 4 per cent compounded annually is received, the
fund will be insufficient to meet all payments to become due. There are no
Government securities in the hands of the public bearing interest payable annually (as distinguished from semiannually) and none which give the exact
return of 4 per cent annually on their market price. During each year the
fund will be drawn upon to pay certificates matured on account of death, and
this continuous liability will require almost daily realization of cash, which can
only be obtained by the sale or redemption of securities in the fund. The
greater part of the fund will remain intact until the maturity of the certificates
• at the expiration of 20 years,-at which time cash will have to be realized. Since
the securities then in the fund will probably not be suited to existing market




SECRETARY OF THE TREASURY

119

conditions, the likely solution at that time will be for the Treasury to redeem
the securities in the fund with the proceeds of new securities which will meet
the market then existing. It is apparent, therefore, that the purchase for the
fund of any of the present outstanding Government securities will not meet
the exact requirements of the fund and will probably be unsatisfactory for
sale yi^hen, on maturity of the certificates, the major fiscal operation to provide
cash must be undertaken.
If the Treasury were in the Government bond market on the 1st of January in
each year to buy $100,000,000 of its securities, the purchases could not be made in
one day j nor could such a large order be filled without unduly increasing the market
price which the fund would have to pay. If, also, the Treasury in the course of the
year was required to sell securities to provide the fund with cash, the tendency
would then be to depress Government securities on the market. So if the practice
of buying and selling on the open naarket were used, the Treasury would be
continually purchasing on a high market and selling on a low market.
; The $100,000,000 called for by the adjusted compensation act for January 1,
1925, was authorized by the deficiency appropriation bill signed December 5,
1924. The Secretary of the Treasury has invested this sum in $50,000,000 par
amount five-year special Treasury notes, dated January 1, 1925, and payable
Jaiiiiary 1, 1930, and in $50,000,000 par amount special Treasury certificates of
indebtedness, payable one year from date, with right in each case of certain
prior redemptions. Both securities call for interest at 4 per cent per annum,
payable annually, or on the prior redemption of the security. It is expected thai
these special certificates of indebtedness will be redeemed from time to time
during the year to provide the fund with cash with which to meet current obligations; that any such certificates remaining unredeemed at the expiration of
the year will be refunded into other certificates or into notes; and that at the
maturity of the notes, they will be refunded into securities of similar tenor until
payments become due on the maturity of the adjusted service certificates some
20 years later.
This method of handling the adjusted service certificate fund has'the following
advantages:
, 1 . The securities exactly fit the actuarial requirements which are by law
made the basis for fixing the appropriations for the fund.
2. The bond market is not disturbed by a purchase of a very large block of
securities early in January and by a subsequent- continuous pressure for the sale
of securities to provide cash for the fund throughout the year, the effect of which
would be buying on a high market and seUing on a low market.
3. Commissions to brokers on the purchase and sale of Government securities
are saved.
4. It is not necessary to borrow on December 15 (the usual financing day
nearest January 1) additional cash and carry this cash, with a consequent loss of
interest, until it can be invested in Government securities on the market after
the first of the year when the appropriation becomes available.
5. Cash demands of the fund can be immediately satisfied by tHe redemption
by the Treasury of the special certificates of indebtedness and the whole plan has
great flexibility.
6. When the adjusted service certificates mature about 1.944^ the Treasury
will be in position to do the necessary financing to meet the conditions then existing, without being compelled to sell a.lot of miscellaneous Government securities perhaps unsuited to the market and to the Treasury's program.
The working of this plan can best be illustrated by its first operation. On
December 15j 1924,, the Treasury, in addition, to any money to purchase investments for the fiind, required $225,000,000 to carry'it through to the ndxt financing period in March, 1925, and sold for cash about $225,000,000 of its 4 per cent



120

REPORT ON THE FINANCES

bonds of 1944-1954. As of January 1, 1925, the Treasury sold to the fund
$100,000,000 of its special notes and special certificates of indebtedness, making
total sales in December and January of $325,000,000 of Government obhgations.
This was the plan actually used. Had the other method of applying the appropriation to the purchase of securities in the open market been adopted, the
Treasury would have had to sell for cash $325,000,000 of its bonds on December
15, 1924, and consequently would have lost the interest on $100,000,000 from December 15 until the securities for the fund could be bought on the market after
January 1, 1925. There is, as will be noted, no difference in the final amount of
pubhc debt incurred between the plan of selling special securities direct to the
fund and the plan of using the fund to buy securities in the market. In either
case the fund would hold $100,000,000 of Government obhgations and there
would be $100,000,000 loss of such obhgatioiis in the hands of the general public.
It seems quite^clear, therefore, that the sale of the special securities direct was
the only feasible way of handhng the investment required by the Congress.

Up to the close of business June 30, 1925, $4,600,000 face amount
of the Treasury certificates in the investment account had been redeemed and the principal amount plus accrued interest to respective
dates of redemption was placed to the credit of the disbursing
clerk of the Veterans' Bureau to provide funds to meet authorized
payments. The total redemptions of Treasury certificates for that
purpose to October 31, 1925, aggregated $9,600,000 face amount, as
indicated in the following statement of the condition of the fund on
October 31, 1925:
Adjusted service certificate fund as of October 31, 1925
FUND

ACCOUNT

Appropriatiofi, Jan. 1, 1925
,
Interest credits account of investment redemptions

$100, 000, 000. 00
192, 021. 91

TotaL
.____._..______..___.L_.
Checks issued by Veterans' Bureau against credits from the
I fund and paid by Treasurer, United States
Balance in fund__-_

1
VUND

100, 192, 021. 91
9, 157, 306. 00
91, 034, 715. 91

ASSETS

Investments:
Treasury notes maturing Jan. 1, 1930___ $50, 000, 000. 00
Treasury certificates maturing Jan. 1,
1926_-_
--50,000,000.00
Total investments made_ _ _ _ . - . . _ 100, 000, 000. 00
Treasury certificates redeemed to Oct.
31, 1925
9,600,000.00
Net investments in fund _ _ _
Balance to credit of disbursing officer of Veterans* Bureau
(includes outstanding
checks)
Total fund assets




_-.

90, 400, 000. 00
634,715.91
i

91,034,715. 91

121

SECRETARY OF THE TREASURY
DISTRICT OF COILUMBIA TEACHERS

RETIREMENT FUND

Investments for account of the fund are made upon advice received
from^ the Commissioners of the District of Columbia from time to
time, stating the amounts available for investment. During the year
purchases of bonds aggregating $250,79p, face amount, were made asfollows: First Liberty loan i ^ i per cent, $26,850; second Liberty loan
4M per cent, $153,400;, fourth. Liberty loan 43^ per cent, $22,800;;
and Federal farm loan 43^ per cent, $47,740; at a total principal cost
(exclusive of accrued Interest) of $254,796.42. The total amonnt of
securities held in the investment account of the fund,on June 30,"
1^25, was $1,139,190, the detail's with respect to which are as follows:'
Principal
cost ,

amount
First Liberty loan 43^ per cent bonds...^_.
=
Second Mberty^ loan 4J^ per dent boadsu J J ................: ^ .^ Third Liberty loan 4}4 per>cient bonds.
,.
Fduitit LibeEty loan. 4 ^ {)er cent, bonds'.... .-wJ—...... ^.;.,.,.-.
Treasury 4M per cent bonds, 1947-1952..^^
Federal farm.loan 4% per (Sent bonds..
.-.....,.......,..•.,...,.L

,
:

$27, 529. 64
154,;9B.l?
157,611.47
704, 3^1.. 27
10,000.00
49,052..^6

$26, 850
1.53,400
. 165,450
735,75010,000
. 47,740:

1,103,480; 40

ii; 139,, 190

The following statement shows the transactions under the combined
appropriated and trust fund accounts during the fiscal year 1925, and
includes cumulative figures from date of the approval of the act,
January 15, 1920, to June 30, 1925:
Fiscal year
1925
Unexpended balance, June 30,1924
Credits:
Deductions from salaries
Interest eacned on investments....
Ap,propriat'ionsftmaderbt'''^G6ngr6¥S'

$33,876. 64

• Total...^.......^........=.......

Jan. 15,1920,
to June 30,
1925

404,335.. 65

Charges:
Annuities, refunds, etc
Investme^Qts, prind^al cost...^...,...
Accrued interest oii investments *.
Unexpended balance, June 30,1925'*'..
Total...---..-^..^^-....-....-....-.

260,826.36 $1,146, 208.32
106,-428.12
40„877.47
68; 756.^18'
207y621t61
1,460,258.05

95,7'8U57
303; 023.99
2 254, 796.42^ 31,. 103,. 480.. 40
960. 77
960. 77
52,792.89
52,792.89
404,335.65

1,, 460,258, 05 •

1 Exclusive) of amouiits carfi'ed to" surplus fuhd. "
2 Face amount, $250,790.,
8 Face amount, $1,139,190'.
^ Repayable in 1926.
8 Exclusive of unexpended balances in hands of Di'sti'ict of Coluhibia di'sbutsing officer, but included
$28.99 unexpended balance' of funds advanced to Treasurer for investment

UlSflTED STATES GOVEEK^MENT LIFE rKStJRAi^CE T V ^ t )

The Secretary of the Treasury is required to invest in interest^
bearing obligations, of the United States or in bonds of the Federal
landbanfa all moneys received inpayment of premiums on, converted
insurance in excess of reserve requirements and authorized payments,



122

REPORT ON T H E FINANCES

pursuant to the provisions of section 18 of the act approved December 24, 1919, as amended March 4, 1923.<, Investments are made
as and when funds are available, upon advice received from the
Director of the United States Veterans' Bureau. During the fiscal
year 43^ per cent Federal farm loan bonds were purchased for the
fund aggregating $31,850,000 face amount, at a principal cost of
$31,895,875. These purchases were made pursuant to an arrangement between the fiscal agent of the Federal land banks, the director
of the bureau, and the Treasury. All securities purchased for this
account are registered in the name of the Secretary of the Treasury
for account of the United States Government life insurance fund. The
obligations of the United States in the fund are held in safekeeping
by the Division of Loans and Currency of the Treasury Department,
and the Federal farm loan bonds are held by the Treasurer of the
United States. Monthly reports are made by the Treasury to the
Veterans' Bureau of all securities in the fund and the principal cost
thereof, and periodic verifications of the security holdings are made
through reports rendered to the director by the safekeeping offices
above mentioned. The securities held in the fund on June 30, 1925,
were as follows:
Par
value
First Liberty loan converted 4K per cent bonds...
Second Liberty loan converted 4J^ per cent bonds.
Fourth liberty loan 4J4 per cent bonds
43^ per cent Treasury bonds.:.
..__

'..

-

$6,639,900
18,089,300
42,661, 550
49,173, 200

$6,316, 209. 21
16, 247,357. 00
39,495, 573. 60
49, 201, 905. 28

116,563,950
31,850, 000

4H per cent Federal farm loan bonds
Total

Principal
cost

111, 261, 045. 09
31,895, 875. 00

148,413, 950

143,156,920. 09

CIVIL SERVICE RETIREMENT AND DISABILITY FUND

During the fiscal year 1925 the total credits in the civil service
retirenient and disability fund aggregated $20,028,867.69, of which
$17,905,070.98 was on account of the 23^ per cent deductions from
appropriations for compensation, $1,860,548.01 on account of interest
oh investments, $169,453.12 for profits on investments, and $93,795.58
miscellaneous credits. The total charges against the fund aggregated
$20,035,042.68, of which $8,881,552.31 was on account of. payments
of annuities, refunds, etc., and $11,153,490.37 on account of investment purchases which includes $55,340.61 of unreimbursed accrued
interest paid on purchases. The balance to credit of the fund at the
beginning of the fiscal year was $85,423.55, as against $79,248.56 on
June 30, 1925. During the fiscal year $13,000,000 aggregate face
amount of Treasury notes held in the investment account was sold
at a profit of $169,453.12 over the purchase price and the proceeds




123

SECRETARY OF THE TREASURY

were reinvested in a like face amount of second Liberty loan converted
4 M P^r cent bonds. The net increase in the principal amount of the
securities at the close of the.fiscal year was $10,710,600 and the increase in the total principal cost of the investments was $11,098,149.76. So far as practicable, funds required for payments of annuities and refunds are invested in short-term securities, which are sold
or redeemed when necessary to meet requirements for payment purposes. Funds not required for payments during the fiscal year are
invested in long-term securities. With the exception of the Treasury
notes, which are issued only in coupon form, all securities in the
investment account on June 30, 1925, are registe^red in the name of
the Secretary of the Treasury in trust for account of the fund, and
are held in safekeeping by the Division of Loans and Currency of the
Treasury Department. The total interest and profits earned and
collected on investments made to June 30, 1925, is $'5,145,804.11.
The following statement shows the securities held in the fund as of
June 30, 1925:
Par value
Second Liberty loan 4J^ per cent b o n d s . . .
Fourth Liberty loan 4}4 per cent bonds...
Treasury notes, series A-1926, 4 ^ per cent
Total.......-..:..-..-.

.

$22,500,000
20,188,350
2, 050, 000
44, 738,350

Principal cost
$22, 536,870. 50
19, 800,436.47
2,065,065.11
44,402,372. 08

Further information in regard to the fund will be found on page 389
of this report.
'
FOREIGN SERVICE RETIREMENT AND DISABILITY F U N D .

The total credits entered into the foreign service retirement and
disability fund, established by section 18 of the act of M a y 24, 1924
(vol. 43, p. 144), during the fiscal year 1925 aggregated $146,110.12,
of which $2,107.83 represented earnings on investments. The net
charges against the fund on account of annuities, etc., were $60,000,
and on account of investments $82,568.91. The unexpended balance
on June 30, 1925, was $3,541.21. The administration of the fund is
vested in the Secretary of State, but the Secretary of the Treasury is
required to make investments from time to time of such portion of the
fund as may not be required for authorized payments and to credit
the fund with the income. Part of the investments for 1925 were
made in short-term obligations during a period when the funds were
not required for immediate disbursement. Such part of the fund
estimated not to be required for use during the fiscal year was invested in longer-term securities. The net investments during the
fiscal year 1925 aggregated $80,650, face amount, of which $79,150
was in fourth Liberty loan 434 per cent bonds, aod $1,500 in 2 ^ per
cent Treasury certificates of indebtedness, series TS~1925.



124

REPORT ON T H E

FINANCES

The following statement shows the securities held in the fund as of
June 30, 1925:
Face
, amount.
Fourth Liberty loan i}4. per cent bonds
Treasury certificates of indebtedness, 254 per cent, TS-1925..:...^
Total--

- .. - •

—-.....'_

.......

...

....-,
....

Principal
cost

$79,1501 00'
1,500.00

$81,069.85
1,499.06

80,650. 00

82, 568. 91

LIBRARY OF CONGRESS TRUST FUND BOARD

The Library of Congress Trust Fund Board, created and established
under authority of the act approved March 3, 1925, consists of t h e
Secretary of the Treasury, chairman of the joint committee on the
Library, the Librarian of Cpngress, and two persons appointed b y t h e
President for a term of five yeafs each, the first appointments being
for three and five yeats, respectively. The personnel of the board was
completed through appointment by the President of Mr. James B.
Wilbur, of Manchester, Vt., for a term of five years, and Hon. John
Barton Payne, of Washington, D. C , for a term of three years. A t
the organization meeting of the board on April 11, 1925, the Secretary
of the Treasury was elected chairman, and the Librarian of Congress^
secretary. A t that meeting the board also adopted a seal.
The act authorizes t h e board to accept, receive^, hold, and administer such gifts or bequests of personal property for the benefit of,
or in connection with, the.Library, its collections, or its service, as
may be approved by the board and by the joint committee on the
Library. The act further provides t h a t the moneys or securities
composing the trust funds given or bequeathed to the board shall be
receipted for by the Secretary of the Treasury, who shall invest, reinvest, or retain, investments as the board may from time to time determine. The income as and when collected shall be deposited with
the Treasurer of the United States, who shall enter it in a special
account to the credit of the Library of Congress, subject to disbursement by the librarian for the purposes in each case specified.
The only donation thus far received is from Mr. James B. Wilbur,
and consists of 1,000 shares 7 per cent preferred capital stock ($100
per share) of the Public Service Co. of Northern' Ilhnois, subject,
however, to certain conditions, the most important of which are
the reservation of certain conversion rights carried by the stock,
and the retention during the life of the donor of six-sevenths of the
income therefrom, the remaining one-seventh to be credited to the
fund, or until such time as the donor might forego a larger part, or all,
of the income for the benefit of the fund. At the only other meeting
of the board on June 8, 1925, for the purpose of considering and acting
upon the donation of Mr. Wilbur, the board accepted the donation




SECRETARY OF THE TREASURY

125

subject to the conditions attached. The chairman of the joint committee on the Library advised the board of the concurrence of the
joint committee in this respect.
The securities constituting the donation were received by the
Secretary of the Treasury and deposited with the Treasurer of the
United States for safe-keeping. Afterwards the securities were returned to the issuing company for cancellation and reissue in the
name of the ^'Secretary of the Treasury in trust for Library of Congress Trust Fund Board, act of March 3, 1925.^' The new certificates
so inscribed are now held by the Treasurer of the United States in
safe-keeping, subject to the order of the Secretary of the Treasury,
in trust for Library of Congress Trust Fund Board, act of March 3,
1925." The first dividends on the stock were received through check
for $1,750, dated November 2, 1925, the proceeds of which, in accorda,nce with arrangements previously made, were deposited with the
Treasurer of the United States in a special deposit account to the
-credit of the Librarian of Congress as secretary of the board. The
librarian was duly advised of such deposit and forwarded to Mr.
Wilbur his official check for six-sevenths of the amount in accordance with one of the conditions of the gift, and deposited with the
Treasurer of the United States his check for the remaining oneseventh to be covered into the Treasury to the credit of the Library
of Congress Trust Fund Board, special fund, where it will be available for disbursement upon requisitions of the secretary of the board
in accordance with the usual procedure governing the handling of
trust fund accounts of the character under consideration.
SURETY BONDS

By Department Circular No. 244 issued under date of April 1, 1925,
making a reassignment of bureaus and divisions of the Treasury,
some changes in procedure have been effected which are proving
helpful to the department in carrying out the responsibility devolving
upon the Treasury under existing law in its dealings with surety
companies writing bonds for the United States.
On June 30,1925, there were 44 surety companies writing or reinsuring bonds in favor of the United States, and as of that date the total
gross assets reported by aU companies amounted to $529,120,493.99;
the total paid up capital stock, $75,934,813.33; and total surplus over
All habilities, $80,651,307.89; with a surplus to pohcyholders of $156,586,121.22. The United States is obligee in many obligations assumed by each company. Therefore, if a proper distribution of bonds
taken by the Federal Government is made among aU companies, the
United States is apparently fuUy protected in this respect.
Under existing regulations a company is permitted to write any
one obligation up to 10 per cent of its combined capital and surplus



126

REPORT ON THE FINANCES

and may write single risks in excess of that amount, provided suitable
indemnity is taken as protection against loss on account of such,
excess. The combined qualification of all companies on one obligation as of June 30, 1925, was $15,658,612.12. During the past year
additional companies have been authorized, while others have retired,
and reinsured their unexpired business in other authorized companies.
There are also several applications pending before the department
from additional companies for certificates of authority.
Further study of the operations of surety companies writing bonds
for the Federal Government is being undertaken.
TREASURY ORGANIZATION

On April 1, 1925, a reassignment was made in the supervision of
bureaus and offices of the department by the Undersecretary and t h e
three Assistant Secretaries. In this reorganization the three Assistant
Secretaries operate under the generalsupervision of the Undersecretary^
who is authorized to act for and represent the Secretary in all branches
of the department. The Undersecretary also represents the Secretary
in dealings with the Federal Reserve Board, the War Finance Corpora-^
tion and the Federal Farm Loan Bureau, and supervises directly the
finances, foreign loans, advances and loans to railroads under the
Transportation Act, 1920, and the office of the Commissioner of
Accounts and Deposits, including the Division of Bookkeeping and
Warrants and the Division of Deposits. In the absence of the Secretary, the Undersecretary also acts as Secretary of the Treasury, the
Fiscal Assistant Secretary acting as Secretary in the absence of both
the Secretary and the Undersecretary, and the senior of the remaining two Assistant Secretaries present acting as such in the event of t h e
absence of these three officers.
The Fiscal Assistant Secretary exercises supervision over the Treas-^
urer of the United States, the Comptroller of the Currency, the Com-^
missioner of the Public Debt, which includes the Division of Loan&
and Currency, the Register of the Treasury, the Division of Public
Debt Accounts and Audit and the Division of Paper Custody, t h e
Bureau of Engraving and Printing, the Mint Bureau, the Secret
Service Division, the Disbursing Clerk and the Section of Surety
Bonds of the Division of Appointments.
The Assistant Secretary in charge of Internal Revenue and Miscellaneous exercises supervision over the office of the Chief Clerk,,
including the Division of Mail and Files, the Bureau of Supply, including the General Supply Committee, the Division of Appointments,,
the Division of Printing, the Bureau of Internal Revenue, the Bureaus
of the Public Health Service and the Supervising Architect's Office.




o
w
ASSISTANT SECRETARY
INCHARSE OF INTER}JAL
R£VENUL^MI6C£LLANE0U5

ASSISTANT SECRE-TARf
IN CHARG£ OF
CUSTOMS COASTGUARD
*"p PROHIBITION

CV5TOM3
SERYICE.

O

COAST
QVARi)

@

PROHIBITION
VNIT




d
w

ORGANIZATION

OF T H E T R E A S U R Y

DEPARTMENT

128

REPORT ON THE FINANCES

The Assistant Secretary in charge of Customs, Coast Guard and
Prohibition exercises supervision over the operations of those three
services.
Department Circular No. 244, revised as of April 1, 1925, in which
there is indicated in detail the assignment of biu'eaus and offices is
shown as Exhibit 79, page 325. The diagram on page 127 gives an
outline of the Treasury organization.
BUDGET AND IMPROVEMENT COMMITTEE

The budget and improvement committee examines all Treasury
estimates of appropriations, makes inquiry as to the reserves which
may be set up under the various appropriations, and considers the
necessity subsequently arising for releasing portions of such reserves
for expenditure, and makes investigations with the purpose of improving administrative methods and procedure. Its reports and recommendations thereon are submitted to the Secretary through the
budget officer of the department.
initial reserves amounting to $529,609 were set up from appropriations for the fiscal year 1925. Subsequently additional reserves
of $1,801,280 were added and $490,582.90 was released, leaving
$1,840,306.10 in reserve at the end of the year. For the^ fiscal year
1926 heads of bureaus and offices reported reserves of $666,250.
After investigation by the committee $490,000 was added, making a
total reserve for the year of $1,156,250.
Supplemental and deficiency estimates were submitted during the
year aggregating $173,428,844.67, of which $166,425,000 was for
refund of internal-revenue taxes. After examination by the committee these estimates were revised and reduced to $157,236,831.22.
Estimates submitted by the heads of bureaus and offices for the fiscal
year 1927 amounted to $164,252,943.37, exclusive of interest on and
retirement of the public debt and amount for the Bureau of the
Budget. The President allocated to the Treasury Department
$155,185,334, as a tentative maximum amount, including $27,234,100
for permanent and indefinite appropriations and special funds. In
case the amount allocated was not, in the opinion of the Secretary,
sufficient to meet the absolutely necessary requirements of the department, the estimates were to be accompanied by a supplemental statement showing the additional amount required, the necessity therefor,
and the consequences which would result from failure to secure the
same. The estimates submitted were carefully examined by the
committee to ascertain as to each item whether the expenditure was
absolutely necessary and if so whether the item should be included in
the regular estimates or in the supplemental statement. Items




SECRETARY OF THE TREASURY

129

aggregating $2,272,713.09 were deducted, items aggregating $154,729,749.28 were approved as the regular estimates, and items aggregating $7,250,481 were submitted as a supplemental statement of the
absolutely necessary requirements of Ijde department.
The committee has considered and reported on various matters
submitted to it, including a number of proposed requests for legislation which might affect expenditures of the department. Through
the medium of subcommittees detailed examinations were made of
two of the department's larger activities, and reports were submitted
thereon containing numerous recommendations for the betterment of
the service. These recommendations have been put into effect so
far as is possible without new legislation. As a result of an inquiry
by the committee as to the cost of printing, a printing and forms
committee has been appointed to pass upon the necessity foi printing
of all kinds, the matter contained therein, and the number of copies
to be printed. See circular letter No. 144, dated May 21, 1925,
attached as Exhibit 83, page 339.
BUREAU OF SUPPLY

The purchasing of supplies and equipment for the Treasury Department (except that for the Bureau of Engraving and Printing,
the Coast Guard, and the Mint) is now centralized in the Bureau of
Supply.
Due in part to exhaustion of surplus equipment remaining from
the war period, in part to replacement of material which had outlived
its usefulness, and in part to larger purchases for the Customs Service
(whose purchasing work was not assumed until April 1, 1924), this
bureau reports considerable increases in expenditures for supplies
and equipment during the fiscal year 1925. As a natural coroUary,
there were material increases also in proposals prepared and circulated, purchase orders issued, and vouchers examined and approved
for payment.
Expenditures by the bureau from allotments made to it for 1925
totaled $5,577,763.24, compared with $5,057,085.10 in 1924. These
expenditures in 1925 involved the preparation and circulation of
5,668 sets of specifications and proposals, the issuance of 38,818.
formal purchase orders, the auditing and approval for payment of
72,498 vouchers, and the examination and forwarding to the General
Accounting Office for direct settlement of 7,709 transportation
vouchers. Like'figures for 1924 were, respectively, 3,452, 32,966,
64,760, and 5,896. The increase in each case would have been sub-,
stantially greater but for adherence by the bureau to the policy of
consolidating and coordinating requirements wherever it was possible
to do so.
60501—FI 1925t

9




130

REPORT ON T H E FINANCES

The following table summarizes, for the fiscal years 1923, 1924,
and 1925, expenditures by the Bureau of Supply from allotments
made to it from appropriations to the several bureaus and offices
for the purchase of supplies and equipment.
1923
Chief clerk a n d s u p e r i n t e n d e n t
General S u p p l y C o m m i t t e e
Division of P r i n t i n g a n d S t a t i o n e r y
Supervising Architect i
B u r e a u of I n t e r n a l R e v e n u e
T r e a s u r e r of t h e U n i t e d S t a t e s .
Commissioner of t h e P u b l i c D e b t 2
Division of B o o k k e e p i n g a n d W a r r a n t s . .
B u r e a u of t h e P u b l i c H e a l t h Service
Division of C u s t o m s ^
TotaL.

1924'

1925

$170,938. 62
118, 506. 98
379,971. 90
768, 419. 45
528, 231. 80
3, 942. 44
63,124. 79
1,493. 50
2, 069,435. 02

$159, 562. 45
111,436.68
319, 293.10
1,925, 066. 63
436, 254.19
141. 77
72,902. 39
3,193. 67
1, 983,116. 44
46,117. 78

$133,812.92
105,606. 56
343,202.28
2, 031, 804. 68
543,413. 74
67.95
49, 640. 01
2,442. 41
2,188,128. 86
179, 643. 84

4,104,064.50 ,

5,057,085.10.

5, 577, 763. 24

1 P u r c h a s i n g for Supervising Architect transferred to B u r e a u of S u p p l y on Oct. 17, 1922.
2 P u r c h a s i n g for t h e Commissioner of t h e P u b l i c D e b t transferred to B u r e a u of S u p p l y on Sept. 15, 1922.
3'Purchasing for Division of C u s t o m s transferred to B u r e a u of S u p p l y on A p r , 1, 1924.

In addition to the foregoing, the bureau made purchases totaling
$68,980 in 1925 (compared with $88,953.96 in 1924) from 13 appropriations from which it received no allotments, the appropriation
accounting being done by the offices for which the purchases were
made.
In making purchases discounts, which are increasingly sought by
the bureau, were availed of to the extent of $11,407.11, which was an
increase of $6,574.50 over the total of $4,832.61 received during the
fiscal year 1924.
Since February, 1923, all shipments of commodities by the department have been routed by the traffic section of the Bureau of Supply.
During the fiscal year 1925 these shipments involved transportation
charges approximating $600,000, and careful attention to shortest
or most economical routings effected material savings in costs of
transportation service.
Purchases and issues of stationery
Expenditures during the fiscal year 1925 for items chargeable to
the departmental appropriation for stationery totaled $342,952.44,
compared with $319,045.61 during the previous year. In addition
$83,332.85 in 1925 and $122,719.08 in 1924 were expended and
reimbursed from appropriations to the bureaus and services of the
department, making the total expenditures for stationer}^ items
$426,285.29 in 1925 and $441,764.69 in 1924, or a decrease of
$15,479.40. Amounts available for these expenditures, including
reimbursements, were $433,332.85 in 1925 and $472,534.08 in 1924;
consequently, unused balances of $7,047.56 and $30,769.39 reverted
to the Treasury in 1925 and 1924, respectively.




SECRETARY OF THE TREASURY

131

The total issues of stationery items were valued at $437,256.01 in
1925 and $492,032.09 in 1924, or a decrease of $54,776.08. The
excess of issues over purchases ($10,970.72) was met from available
supplies carried in stock in warehouse.
The inventory value of the stock of stationery supplies on hand
July 1, 1925 (based on replacement costs), was $162,070.26, compared
with $155,290.37 on July 1, 1924, or an increase of $6,779.89. This
increase and the excess of issues over purchases were provided for
by the removal to warehouse of about $18,000 worth of stationery
supplies from the various units of the department.
Shipments of stationery and miscellaneous supplies by the Bureau
of Supply from Washington to field offices of the department totaled
14,119 packages, boxes, etc., weighing 765 tons in 1925, compared
with 7,989 packages, etc., weighing 610 tons in 1924. These figures
show an increase of 6,130 in the number of packages, etc., and 155
tons in weight. In detail, the shipments in 1925 were made up of
2,909 franked parcels, weighing 8,727 pounds; 2,139 parcel-post
packages, weighing 29,542 pounds and costing $1,548.98 in postage;
and 9,071 express and freight boxes, crates, etc., weighing 1,491,208
pounds. The shipments by freight and express involved the use of
3,859 Government bills of lading in 1925 against 3,817 in 1924.
General Supply Committee
Purchases reported by Government departinents and estabhshments under contracts negotiated through the General Supply Committee amounted to $6,645,195.64 during the fiscal year 1925, an
increase of $146,576.41 over the preceding year. Of the 20 classes
of items contracted for, purchases of 15 increased in varying amounts
and those of 5 decreased. There were increases totaling $495,817.21
in purchases of items included in classes 9 and 18 (furniture, filing
equipment, typewriting machines, adding machines, and other laborsaving devices, etc.), due to the fact that there is no longer available
any surplus equipment of this character, while there was a decrease
of over a half million dollars in purchases of stationery items (class 1).
The favorable prices obtained by coordinating purchases of automobile tires and tubes resulted in many field services filhng their
requirements during the past year from General Supply Committee
contractors, consequently i*eported purchases of these items show an
increase of $55,339.54—from $96,633.21 in 1924 to $151,972.75 in
1925.
Issues of surplus supplies and equipment to various Government
activities have decreased as available articles fit for further use have"
diminished, the value of equipment issued in 1925 being $78,028.61,
against $150,002.96 in 1924. Similarly, there was a suostantial decrease in the value of material no longer usable by tne Government



132

REPORT ON T H E FINANCES

which was disposed of to the pubhc at auction and contract sales, the
returns from which in 1925 amounted to $229,085.58 and in 1924
to $300,003.40. The aggregate return to the Government from the
disposition of surplus material, including both transfers to Government estabhshments and sales to the public, was $307,114.19 in 1925,
compared with $460,006.36 in 1924.
The number of supply contracts entered into was much greater
than dming the preceding year, there having been 1,128 in 1925
and 768 in 1924. This was due in large part to the effort of the
General Supply Committee to secure more favorable prices by substituting as far as possible short-term contracts for annual contracts
for such items as are subject to considerable fluctuation, thus reducing the hazard of loss from rising markets against which contractors are forced to protect themselves when bidding on longer
terms.
The continuation of the policy of consolidating requirements on a
nmnber of commonly used supply items and contracting for definite
quantities for immediate delivery in bulk shipments has lowered the
cost to the Government of many such items. That material economies
are possible through this plan of procuring commonly used supplies in
definite quantities has been demonstrated both by direct savings
resulting from lower prices and by indirect savings resulting from
single inspections and tests rigidly applied. I t is necessary, however,
again to call attention to the disadvantages imposed by existing
law, under which consolidated payments may not be made for
supplies so purchased. Better prices could be obtained and consequently greater savings could be accomplished were the present
cumbersome method of each department making an individual
payment for its particular share of a consolidated pmrchase supplanted by the more business-like procedure of settling an indebtedness by a single check, based on a single vDucher. The present
system complicates accounting, both for the contractor and the
Government; it causes delays in the payment of bills; and often it
makes it impossible to take advantage of discounts.
PERSONNEL

On June 30, 1924, there were on the rolls of the Treasury Department in Washington 17,119 employees, and on September 30, 1925,
there were 15,535 employees, a net decrease of 1,584.
Most of this decrease has occurred in the office of the Chief Clerk,
the Division of Loans and Currency, the Bureau of Internal Revenue,
and the office of the Register of the Treasury.
On June 30, 1924, there were 41,882 employees in the field service
while on June 30, 1925, the number was 46,770, a net increase of
4,888, made up chiefly of increases of 3,634 in the Coast Guard




133

SECRETARY OF THE TREASURY

Service and 597 in the Customs Service. These additions were due
to increased activities authorized by law.
A statement shomng by bureaus, divisions, and offices the number
of employees in the departmental service of the Treasury, at the
close of each month from June, 1924, to September, 1925, is included
in this report as Exhibit 80, page 327. A summary of the number
of employees in the offices having both departmental and field services is shown in the following table:
June 30, 1924

Increase (+) and
decrease (—)

June 30, 1925

Bureau or office
Depart- Field
mental
Division of Customs -.
Secret Service Division
United States Coast Guard..
Federal Farm Loan Bureau.
Mint Bureau
Internal Revenue Bureau
Public Health Bureau
Supervising Architect's Office
All other
Total . . - - . . . .

Total Depart- Field
mental

Total Depart- Field
mental

Total

55 7,800
7,855
13
123
136
107 5,764 5,871
92
92
14 """738"
752
6,469 13, 099 19, 568
261 8,639 8,900

54 • 8,397 8,451
+597
-1
+596
11
127
138
-2
+2
+4 +3, 650
123 9,398 9,521
+16
96
96
+4 +3, 634 •
+4
14 ""'~780"
"""+42"
794
+42
6,022 13, 312 19. 334 ""-447" +213
-234
-24
237 8,838 9, 075+199
+175

211
9,897

221
9,038

17,119

5, 719

5,930
9,897

5,918

6,139
9,038

+10
-859

+199

+209
—859

41, 882 59, 001 15, 816 46, 770 62, 586 -1,303 +4, 888 +3, 585

PERSONNEL CLASSIFICATION

At the beginning of the fiscal year 1925, the work incident to
the classification of employees was functioning on a sound basis
and practically all of the outstanding initial errors in job classification and inconsistencies in allocation—the natural sequence of such
a huge undertaking as classification—had been corrected to the
satisfaction of the department. The extent of the progress made
was due, chiefly, to the contact established by the Treasury Personnel Classification Board with the offices of the department and
the Personnel Classification Board.
On November 8, 1924, the Personnel Classification Board introduced the new system of efficiency rating of employees as required
under the classification act of 1923. The first rating of employees
by grades and offices was made effective as of November 15, 1924,
and was intended to show the relative efficiency of competitive
employees for the six months' period ended that date.
The new system was considerably more elaborate than the judgment rating system installed by the Bureau of Efficiency which was
in operation up to this time, and of necessity, required careful study
and discussion in order that a systematic and uniform procedure
might be established in each office. Notwithstanding the desire of
all offices fully to comply with the rules governing the operation




134

REPORT ON T H E FINANCES

of the system, the rating of November 15, 1924, was not entirely
satisfactory. The discrepancies reflected in the first rating were
almost wholly accountable to a misunderstanding of the fundamentals
of the new system.
Great improvement was shown in the rating for the following six
months' period ended May 15, 1925, which rating is now used as a
basis not only for purposes of promotion throughout the department
but as a guide in the preparation of separation and demotion lists
when a reduction in force becomes necessary.
By the 1st of May, the classification and efficiency rating work
had become so well established that it was deemed expedient permanently to centralize the subsequent handling of all these matters
with one official who would be in a position to make definite recommendation on the detail of the entire subject. Accordingly, the
responsibility for these functions was vested in one official by Secretary's order of May 9, 1925 (Exhibit 78, page 324), which order simultaneously discharged the Treasury Department Personnel Classification Board of five members. Under the new plan the chief clerk
of the department, under the supervision of the Secretary's office,
iS charged with the direction of all classification and efficiency rating
work and in each office a designated employee is required to specialize
on these subjects and serve as a member of the advisory committee
to the chief clerk. The centralization of tliis work with one official
has enabled the department to make intelligent and consistent
recommendations to the Personnel Classification Board and to secure
from one source pertinent information regarding the application
of the classification act.
During the year 922 protests were filed, of which number the
Treasury board and subsequently the chief clerk approved 682,
disapproving or submitting for special investigation 240 cases. Of
the 682 cases submitted the Personnel Classification Board approved
"235, disapproved 269, and at the end of the year had still under
consideration 178.
RETIREMENT OF CIVIL SERVICE EMPLOYEES

From October 1, 1924, to September 30, 1925, 101 persons were
retired on account of age and 73 were retired on account of-disability. Since the retirement law went into effect 1,943 employees
have been retired under the provisions of the law. At the present
time only 88 persons above the retirement age are retained in the
Treasury Department in Washington and 443 in its field service.
Of the total number retained in the field service 250 are in the Customs
Service, where on account of their long experience in the interpreta-




185

SECRETARY OF THE TREASURY

tion and administration of the customs laws many of these employees
are more valuable to the Government than new employees without
experience would be. I wish to repeat the expressions of opinion
made in my recent annual reports that it would be beneficial to the
ejnployees and in the interest of efficient administration to reduce
the age limits and to increase the annuities granted under the retirement law.
The following table shows the number of persons retired and the
number retained in the departmental and field services of the Treasury
under the provisions of the act of May 22, 1920, and the amendments
thereto:
Total number of persons now retained in the departmental and field services of
the Treasury Department under section 6 of the act approved May 22, 1920,
and the amendments thereto, and the number retired since the act went into effect
on August 20, 1920
DEPARTMENTAL
R e t i r e d on account
of age
Office

From
Oct. 1,
1924, t o
Sept. 30,
1925

From
Oct. 1,
1924, to
Sept. 30,
1925

Retained
To
Sept. 30,
1924

Secretary's
Appointment Division..
Mint Bureau
C u s t o m s Division
P r i n t i n g Division
T r e a s u r e r ' s office
Bookkeeping a n d W a r r a n t s
Public Health
Comptroller of C u r r e n c y
Loans a n d C u r r e n c y . .
.
Supervising A r c h i t e c t . . .
Public Debt .
Secret Service
M a i l a n d Files
Register's office
Engraving and Printing
....
Internal Revenue
Chief.Clerk
Coast G u a r d
A u d i t o r ' s offices
Public Moneys
War risk...
_
Total..

3
1
12
1
2
6
7
5
2
5
2
2
3
8
29

88

,
_

R e t i r e d on account
of disability

1
1
1
1

2
45
6

2

19
14
10
1
3
2
8
213
42
23
5
86
3
14

3

496

To
Sept. 30,
1924

Retired
under
act
Sept. 22,
1922

1

1
17
8
1

28.
3
4
4
3
2
3
75
15
6

1
2
9
1
1
2

1

i

9
4
1

9
5
3

1

11
1
1
33

160

32

58
20

20
4

3
6
30
3

1
16

120

41

18

Total
number
retired

1
2
1
3
2
84
7
4
26
18
17
3
3
2
13
323
74
34
5
98
4
15
739

FIELD SERVICE
Customs
Internal Revenue
Coast G u a r d
Public Health
M i n t a n d Assay
Custodian
Subtreasury
Total




250
29
1
14
41
108
443

361
219
7
7
124
154
24

28
13
1
5
6
15

896

68

13

,

467
321
8
15
138
215
40

79

1,204

65
1

136

REPORT ON T H E FINANCES
PRACTICE BEFORE THE TREASURY DEPARTMENT

During the year 2,686 applications for admission to practice before
the Treasury Department as attorney or agent were received, 2,715
were approved, and 32 were disapproved. Department Circular No.
230, as revised and reissued August 15, 1923, requires all attorneys Or
agents already enrolled and desiring to continue in practice to file an
affidavit relative to handling business before the department on a
contingent fee basis. A similar affidavit is required in the case of
each new applicant for enrollment. At the close of the year 12,378
persons had filed the required affidavit and were eligible to practice
before the department.
There.has been increased activity by the committee on enrollment and disbarment in investigating and reporting on complaints
charging enrolled attorneys or agents with violation of the laws and
regulations governing practice before the department. On June 30,
1924, there were 39 unsettled cases in which formal proceedings for
suspension or disbarment had been instituted and during the year proceedings were instituted in 95 new cases, a total of 134. In 11 cases
the complaint was dismissed on the respondent's answer without
formal hearing, and in 16 cases the complaint was dismissed after
answer and a formal hearing by the committee on enrollment and
disbarment. In 51 cases, after a finding and recommendation by the
committee, penalties were approved by the secretary as foUows: 9
individuals were disbarred from further practice before the department, 19 were suspended from practice for various periods from 10
days to 1 year and 23 were reprimanded. Fifty-six cases remained
unsettled on June 30, 1925. The large and increasing number of
complaints against enrolled attorneys or agents has necessitated the
designation of an additional attorney to assist in the preparation and
presentation of cases before the committee.
By an order effective September 1, 1925 (Exhibit 82, page 339), all
attorneys and agents appearing in behalf of any person in any matter
whatsoever pending before the prohibition unit or any branch office
thereof or before any agent or officer of the prohibition service are
required to be enrolled and admitted to practice in accordance with
the regulations.
PANAMA CANAL

The general fund of the Treasury was charged during the fiscal
year 1925 with $9,923,199.66 on accoimt of the Panama Canal,
including $9,050,509.73 for maintenance and operation and $872,689.93
for fortifications and miscellaneous expenditures. The general fund
was credited during the year with $22,553,732.44 on account of
receipts from tolls, etc., rnaking an excess of receipts for the year of




SECRETARY OF THE TREASURY
$12,630,532.78. The total amount expended for canal construction,
fortifications, maintenance, and operation, together with the amount
of interest paid on Panama Canal loans up to the close of the fiscal
year 1925, is shown in the following table:

Year

1903.
1904
1905
1906
1907.
1908 - .
1909.
1910
1911.
1912
1913._1914
1915
1916..
1917 . .
1918
1919.
1920
1921.
1922
1923.
1924
1925

.

Total..--.

Construction,
maintenance,
and operation
$9,985.00
50.164, 500. 00
3,918,819.83
19, 379,373. 71
27,198, 618. 71
38,093,929. 04
31,419,442. 41
33,911,673. 37
37,038,994. 71
34,285, 276. 50
39,917,866. 71
31, 452, 359. 61
24,427,107.29
14, 638,194. 78
15,949,262.47
13, 299, 762. 56
10, 704, 409. 74
6,031,463. 72
16, 230, 390. 79
2, 791, 035. 40
3, 620, 503. 37
7,141,711.97
9, 050, 509. 73
470, 675,191.42

Total

Fortifications'

Interest paid
on P a n a m a
C a n a l loans

Receipts
covered into
the Treasury

$30,608.75
1,036,091. 08
1,823,491. 32
3, 376, 900. 85
4, 767, 605. 38
2,868, 341.97
3,313, 532. 55
7,487,862. 36
1, 561,364. 74
3,433, 592.82
2, 088, 007. 66
896, 327. 45
950,189. 20
393,963. 37
872,689.93

$9,985.00
50,164, 500. 00
3,918,819. 83
19, 379, 373. 71
27,198, 618. 71
38, 093,929. 04
31,419,442. 41
33,911, 673. 37
37, 069, 603. 46
35, 321, 367. 58
41, 741,358. 03
34,829,260. 46
29,194, 712. 67
17, 506, 536. 75
19, 262, 795. 02
20, 787,624. 92
12, 265,774. 48
9,465,056. 54
18, 318, 398. 45
3, 687, 362. 85
4, 570,692. 57
7, 535, 675. 34
9,923,199. 66

$785,268.55
1,319,076. 58
1, 692,166. 40
1,691,107.20
3,000, 669. 60
3, 201,055. 81
3,194,105. 95
. 3,199, 385. 05
3,189, 024. 79
3,103,250. 67
2,976,476. 55
2,984,888. 33
3,040,872.89
2.994, 776. 66
2.995, 398.14
2,997,904.81
2,992,461.19
2,988,918.80

$371,253.06
380,680.10
1,178,949. 85
1,083,761.49
705,402.42
3,214,389. 48
1,757,284. 44
2,982,823. 92
4,070,231. 27
698,647.87
4,130,241. 27
2,869,995. 28
6,150,668, 59
6,414, 570. 25
6,777,046. 55
9,039, 670.95
11,914,361.32
12,049, 660. 65
17,869,985. 25
26,074, 513. 33
22, 553, 732.44

34,900,569.43

505, 575, 760.85

48,346,807'. 42

142, 287,869. 78

FINANCES

Condition of the Treasury, June 80, 1925
[Revised figures]

General fund:
In Treasury offices—
Gold
.....
. . $175, 147, 160. 94
Standard silver dollars
2, 399, 135. 00
United States notes
2, 193, 375. 00
Federal reserve notes
246, 920. 00
Federal reserve bank notes
87, 890. 00
National-bank notes
.44, 261. 00
Subsidiary silver coin
7, 537, 767. 75
Minor coin
1, 782, 509. 74
Silver bullion (at cost)
16, 387, 694. 52
Unclassified (unassorted currency,
etc.)
3,285,897.20
In Federal reserve banks—
To credit of Treasurer of the United States. __
In transit

$209, 112, 611. 15
25,434,368.53
20, 701, 960. 10
46, 136, 328. 63

In special depositariesAccount of sales of certificates of
indebtedness
60501—FI 1925t
10




150, 716, 572. 04

138

EJEPORT. ON THE FINANCES

General fund—Continued.
In national-bank depositaries—
To credit of Treasurer of the
UnitedStates
To credit of other Government
officers
....
In transit
'

$6,809,268.69
22, 002, 977. 91
2, 821, 710. 99
$31, 633, 957: 59

In treasury of Philippine Islands—
To credit of Treasurer of the IJnited
States
In transit
In foreign depositaries—
To credit of Treasurer of the United
States
To credit of other Government
officers
In transit

896, 150. 92
80.43
896,231.35
85,129.01
172, 842. 97
250.00

438, 753, 922. 74

Deduct current liabilities—
Federal reserve
note 5 per cent
fund(gold)__. $161,594,675.70
Less notes in
process of redemption
1, 227, 342. 50
National-bank
note 5 per
cent fund
Less notes in
process of redemption

160, 367, 333. 20
26, 993, 525. 27
19, 550, 970. 00

Treasurer's checks outstanding
Post Office Department balance. _ _
Board of trustees. Postal Savings
System balance
Balance to credit of postmasters,
clerks of courts, disbursing
officers, etc
_..__
Undistributed assets of insolvent
national banks
Retirement of additional circulating notes, act of May 30,1908_ _ _
Miscellaneous redemption accounts

7, 442, 555. 27
1, 277, 960. 18
8, 036, 827. 50
7,043,441.20
30, 687, 874. 74
2,574.41
4, 740. 00
3, 911, 175. 42

Balance in the Treasury June 30, 1925, according
to statement of the public debt of the United
States-




258, 221. 98

218, 774, 481. 92

219, 979, 440. 82

SECRETARY OF THE TREASURY

139

The following is a summary of the net change in the general
fund balances between June 30, 1924, and June 30, 1925: .
General fund balances:
Balance per daily Treasury statement, June 30, 1924
$235, 411, 481. 52
Add excess of receipts over expenditures in June,reports
subsequently received
2, 618, 033. 22
Net balance June 30, 1924, according to statement
of the public debt of the United States
238, 029, 514. 74
Excess of ordinary receipts over expenditures chargeable
against ordinary receipts in the fiscal year 1925
250, 260, 064. 35
Total to be accounted for
- 488, 289, 579. 09
Public debt retirements from surplus revenue
250, 260, 064. 35
(This is additional to $466,538,113.83 sinking fund
and other debt retirements chargeable against ordinary
receipts.)
Public debt retirements resulting in decrease in general
fund balance
18, 050, 073. 92
Balance in the Treasury June 30, 1925, according to
statement of the pubhc debt of the United States
219, 979, 440. 82
Total
488, 289, 579. 09

United States notes {greenbacks).—The redemptions of United
States notes unfit for circulation during the year amounted to
$285,560,000. An equal amount was issued in order to maintain
the outstanding aggregate of the notes as required by law.
Gold reserve fund,—The reserve fund was increased by $641,959.88
during the year, being the amount of franchise tax receipts paid
into the Treasury by the Federal reserve banks and Federal intermediate credit banks on account of earnings in the calendar year
1924. The reserve fund now amounts to $153,620,985.51. There
were no redemptions of United States notes for gold from the reserve
fund during the year.
Trust funds,—The following table shows the trust funds held for
the redemption of the notes and certificates for wliich they are
respectively pledged:
Gold coin and bullion. $1, 609, 687, 619
Silver dollars.
448, 724, 195
Silver dollars, 1 8 9 0 . 1, 386, 882

Total

,.-.

2, 059, 798, 696




Gold certificates outstanding
. . $2, 096, 695, 459
Less amount in the
Treasury
487, 007, 840
Net
1, 609, 687, 619
Silver certificates outstanding
453,236,773
Less amount in the
Treasury..
4, 512, 578
Net
448, 724, 195
Treasury notes (1890)
"
outstanding
1, 391, 882
Less amount in the
Treasury. .
5, 000
Net
1, 386, 882
Total
2, 059, 798, 696

140

REPORT ON T H E FINANCES

Gold fund, Federal Reserve Board,—The balance to the credit
of the gold fund of the Federal Keserve Board on June 30, 1925,
amounted to $1,752,744,435.12, a decrease of $508,146,600 from the
amount to the credit of this fund on June 30, 1924.
The public debt,—The gross public debt of the United States at
the close of the fiscal year 1925 amounted to $20,516,272,174.73.
This is shown in detail in Exhibit 1, page 170, and Table A, page 448.
Receipts and expenditures, on cash basis
The following statements summarize cash receipts and expenditures during the fiscal year 1925, and the estimated receipts and
expenditures for the fiscal years 1926 and 1927 on the basis of the
latest information received from the Bureau of the Budget:
Summary of receipts and expenditures on the basis of daily Treasury statementSy
unrevised
Actual, fiscal
year 1925
Net balance in the general fund at the beginning of fiscal
year
_
_
Receipts:
Ordinary
Public debt

Estimated,
Estimated,
fiscal year 1926 fiscal year 1927

$235,411,482

$217,835, 732

$217,835, 732

3, 780,148, 684
1 1,809,427,195

3,880, 716, 942
1,064, 903,449

3,824, 530,203
1,541,022,307

5,824,987, 361

5,163, 456,123

6, 583, 388, 242

Expenditures:
3, 063,105,332
Ordinary
_
466,538,114
Public debt chargeable against ordinary receipts...
1 2, 077, 508,183
Other public debt
217,835, 732
Net balance in the general fund at close of fiscal year

3,118, 246, 591
500,428, 595
1,326, 945,205
217,835, 732

2, 978, 638,910
515, 583,398
1,871,330,202 •
217,835, 732

5, 824,987, 361

5,163,456,123

5, 583, 388, 242

699, 591,478
622,808, 262

660,000,000
697,067,449

704,400,000
729,178,816

23, 216,784

37,067,449

24, 778,816

Total

-—

-

Total
POSTAL SERVICE

Postal receipts
Postal expenditures 2
Deficiency in postal receipts«

,

I Other public debt expenditures and public debt receipts, as shown in this statement, are exclusive
of $1,343,293,500 Treasury certificates issued and retired within the same fiscal year.
> The postal expenditures, and the deficiencies, as shown in this table are exclusive of amounts transferred,
or estimated to be transferred, to the Civil Service Retirement Fund under the act of May 22, 1920, as follows: 1925, $10,622,116.17; 1926, $10,308,157; and 1927, $11,098,747.
8 The postal deficiency for 1925 and the estimated postal deficiencies for 1926 and 1927 are included in the
ordinary expenditures shown above and in the general classification of ordinary expenditures and estimated ordinary expenditures on p. 142.




Receipts and expenditures for the fiscal years 1924 and 1926, and estimated receipts and expenditures for the fiscal years 1926 and 1927 {on the
basis of daily Treasury statements, unrevised)
Fiscal year 1924

Fiscal year 1925

Fiscal year 1926

Fiscal year 1927

RECEIPTS

Ordinary
Customs.
Internal revenue:
I n c o m e tax
._.,
Miscellaneous internal revenue.-.,.
Miscellaneous receipts:
Proceeds of
Governmentowned s e c u r i t i e s Foreign o b l i g a t i o n s Principal
Interest
R a i l r o a d securities
All o t h e r securities
T r u s t fund receipts (reapp r o p r i a t e d for i n v e s t m e n t ) .
Proceeds sale of s u r p l u s p r o p erty
P a n a m a C a n a l tolls, e t c
R e c e i p t s from miscellaneous
sources credited direct to
appropriations
_..
O t h e r miscellaneous

$1,880,000,000. 00

$1,880,000,000. 00

$1, 760, 537,823. 68

1 $551, 750,000. 00

» $556, 750,000. 00

$547, 561, 226.11

$545, 637, 503.99
$1,842.144,418. 46
953, 012,617. 62
• 2, 795,157, 036.08

828,638,067.90
• 2, 589,175.891. 58

864,000, 000. 00
•2,744,000,000.00

61, 089,867.14
160,684,807. 75
94, 373,535. 52
9, 602,404. 53

23, 247,699. 07
160, 389,977. 94
143,911, 420. 98
19, 843, 302. 01

31,257,243.00
163,377,046.00
56,976,923.00
66,992,939. 00

32, 226, 660. 00
163, 345,470. 00
17,801, 972. 00
37,478. 724. 00

30,643,799.16

33, 373, 481. 01

40,495,000.00

47,462,000.00

46, 774,600. 22
27, 063, 204. 24

23,768,975.02.
23, 089, 957.87

24, 799, 630.00
21, 000,000. 00

U2

874, 000,000. 00

20,338, 083. 00
21,000,000. 00

2,754,000, 000. 00

>

29,603, 432. 29
186,183, 320. 54

29,609,735.46
211,408, 207.56

O

;>

179,127,394. 00

175,068,161.00

671,250,161. 58
Total ordinary receipts......

643,411, 566. 73

579, 966, 942.00

518, 780, 203. 00

4,012, 044,701. 65

3,780,148,684.42

3,880, 716,942.00

3,824,530,203. 00

' I n c l u d e s $1,750,000 e s t i m a t e d b y D e p a r t m e n t of C o m m e r c e for t o n n a g e t a x , receipts on account of w h i c h are covered i n t o t h e T r e a s u r y as c u s t o m s r e v e n u e s .




o
w

pi

Receipts and expenditures for the fiscal years 1924 and 1925, and estimated receipts and expenditures for the fiscal years 1926 and 1927 {on the
basis of daily Treasury statements, unrevised)—Continued
Fiscal year 1924

Fiscal year 1925

Fiscal year 1926

to

Fiscal year 1927

EXPENDITURES
Ordinary {checks a n d w a r r a n t s
paid, etc.)
General e x p e n d i t u r e s :
Legislative e s t a b l i s h m e n t . . . .
Executive proper
State Department
Treasury Department
War Department
..
D e p a r t m e n t of J u s t i c e
P o s t Office D e p a r t m e n t
Navy Department
Interior D e p a r t m e n t
D e p a r t m e n t of A g r i c u l t u r e . . .
D e p a r t m e n t of C o m m e r c e —
D e p a r t m e n t of L a b o r
U . S. V e t e r a n s ' B u r e a u .
O t h e r i n d e p e n d e n t oflBces
a n d commissions
D i s t r i c t bf C o l u m b i a

$13,855,664. 29
411,898.27
15.054, 408.58
12», 232,421. 79
361,887,888.84
23,495, 738.96
3 79,826.85
346,142,001.44
302,440,633.08
164,644,283.54
25, 782, 961.39
9,677,841.30
384,715,796. 72

$16, Oil, 245.00
483,007.00
16,135, 032.00
132,237,928.00
347, 289, 031.00
25,053,160.00

$16,169.685.00
431,104.00
16,372,154.00
134,604, 988.00
338,249,520.00
24,340,750.00

342,305,000.00
293,86", 508.00
162,901,222.00
29,427,640.00
8,355,699. 00
388,515,000.00

333,691, 000.00
267,806,057.00
161,133,552.00
30,227,500.00
8, 583,4M. 00
367, 765,000.00

28,261,981. 47
25,873,115.19

. 27, 682,657.28
32, 713,000. 67

32,179,331.00
36,516,448.00

33,991,496.00
36,311,600 00

Total-. D e d u c t unclassified i t e m s

1,829,697,061.65
1,234,150.47

1,836, 657,369.20
* 347,106.72

1,831,277,161.00

1, 759,677,860 00

Total.
I n t e r e s t on p u b l i c d e b t
..
Refunds of receipts:
Customs
Internal revenue . . .
P o s t a l deficiency
P a n a m a Canal
.
O p e r a t i o n s i n special a c c o u n t s :
Railroads
W a r Finance Corporation
Shipping Board
.
Alien p r o p e r t y funds
A d j u s t e d service certificate
fund
L o a n s to railroads

1,828,462,911.18
» 940,602,912. 92

1,837,004,475.92
2 881,806,662.36

1,831,277,151.00
820, 000,000. 00

1, 759,677,860 00
795. 000.000 00

20, 566,638. 33
127, 220,151. 47
12,638,849. 75
8,387,099.90

22, 920,891. 05
147, 777,034. 05
23, 216,783. 58
9,092,818.69

28,622,500. 00
157,625,000.00
37,067,449.00
10,213,394.00

20, 010, 000.00
152,225, 000 00
24, 778,816.00
8,963, 534.00

22, 771,167. 74
» 52, 539,947. 20
85,491,358. 71
3 1,150, 576.16

7,204,992. 53
» 42, 901,758.13
30,304,859. 54
4,018,131.55

7,209,047. 00
» 20,000,000. 00
39,690, 000. 00
1,000,000. 00

4,525,000 00
»10, 000, 000.00
27, 710,000.00

•99,458,769.16-

156,000, 000.00

140 000.000 00




$14,315,684.73
450,952.65
14,669,456.89
» 137,411,205.17
348, 629,778.55
21,134,228.10
186,789. 29
332,249,136.67 .
328,227,697.11
141,116,440.69
21,429,678.93
6,620,052. 55
409,120,863.66

12.971.000.00

w
O

w

H
O

"^

H

5^

I n v e s t m e n t ot t r u s t funds:
G o v e r n m e n t life i n s u r a n c e
fund
;
i
Civil service r e t i r e m e n t f u n d .
D i s t r i c t of C o l u m b i a teachers* r e t i r e m e n t f u n d . . . .
Foreign service r e t i r e m e n t
fund
.
_ ._
General railroad c o n t i n g e n t
fund
-

250.000.00

258, OOC. 70

fi77

82,050. 00

75, 700.00

1,123,760. 49

4,584,262.92

• 245,000.00

82, 568.91

233,420.36

<t5t n 4 f t

P u b l i c d e b t r e t i r e m e n t s chargeable against o r d i n a r y receipts:
S i n k i n g fund
c..:..
P u r c h a s e s from foreign repayments
Received from foreign gove r n m e n t s u n d e r d e b t settlements...
i:
Received from estate taxes
P u r c h a s e s from franchise t a x
receipts ( F e d e r a l reserve
b a n k s a n d Federal interm e d i a t e credit b a n k s ) . . . . . .
Forfeitures, gifts, e t c . .

44, 212,000. 00
8, 211,000. 00

38,250,000.00
8,965,000.00

31,991,713.82
9,745,622.04

30,410,378.80
8,028,336.62

2,000,000. 00

3, 000,000. 00

OR*! l A

^L1 OfiT in"! ^ T ^ ofi

l i s O R f^oi nn
A

fv'^ 07S 63fi 910 00

339,423, 648. 00

325,304,445. 00

306,308,400.00

295,987,350.00

<6T

m
o

386,100.00

38,509,150.00 •
110,878,450.00
8,897,050.00

158,793,600.00
47,660. 00

3,634,550.00
93,200.00

794,169. 88
208,403. 95

1,000,000.00

175,159, 750. 00

174,124,150. 00

;>
1,000,000.00

.

'il') 583 39R 00

T o t a l e x p e n d i t u r e s chargeable against o r d i n a r y receipts

3,506,677,715.34

3, 529,643,446.09

3, 618, 675,186. 00

Excess of o r d i n a r y receipts over
t o t a l e x p e n d i t u r e s chargeable
against o r d i n a r y receipts

505,366,986.31

250,505,238.33

262,041,756.00

3,494,222,308.00

w

330, 307,895. 00

1 Includes $12,000,000 subscriptions to capital stock of Federal intermediate credit banks for the fiscal year 1924.
2 Includes $25,020,344.59 for 1924 and $10,374,897.87 for 1925, accrued discount on war savings certificates of the series of 1918, 1919, and 1920.
3 Excess of credits, deduct.
*Add.
.» The variation in above amount from amount appropriated is due to necessity for a small working balance in connection with certificate payments by Veterans' Bureau,
amount of fund invested see items of adjusted service series under public debt receipts and public debt expenditures on pages 154 and 163,




o

For

CO

Public debt expenditures and receipts for fiscal year 1925 and estimates for fiscal years 1926 and 1927^
[On basis of daily Treasury statements, imrevised]
Fiscal year 1925

Fiscal year 1927

Fiscal year 1926

EXPENDITURES

Certificates of indebtedness
Treasury notes and certificates of indebtedness (adjusted service series)
Victory notes
Treasury'notes and Liberty bonds
Treasury (war) savings securities
.
..
Loan of 1925
'
Retirements of Federal reserve bank notes and national-bank notes
Old debt items
:

$809,661,000
4,600,000
6, 972,5501, 485, 253,450
50,868,101
117,050,150
68, 974,392
666, 654

Total public debt expenditures
_.
. .
Deduct debt expenditures chargeable against ordinary receipts:
Sinking fund
.•
Purchase of Liberty bonds from foreign repayments..
Received from foreign governments under debt settlementsRedemption of bonds and notes from estate taxes..
Retirements from Federal reserve bank and Federal intermediate credit bank
franchise tax receipts..
.
Retirements from gifts, forfeitures, etc -

2, 544, 046.297

$800,000,000
15,000,000
1,000, 000
1,438,903, 600
97,000, 000

$830,621,000
15, 000, 000
3,000, 000
915, 337, 800
.. 12, 000, 000
1,400,000
50, 000,000
15, 000

35, 000, 000
10, 000

1,827, 373,800

2, 386,913, 600

$306,308,400
386,100
158,793, 500
47, 550

$325, 304, 445

$339, 423, 648

174,124,150

175,159, 750

794,160
208,404

1, 000, 000

o
o
H

'

1, 000,000

500,428, 595

515,583, 398

2, 077, 508,183

1,326,945, 205

1,871,330, 202

105,352,372
23, 599,203
1, 680,475, 620

20,000,000

20,000, 000

1,044,903,449

1, 521,022, 307

1,809,427,195

1,064,903, 449

268, 080, 988

262, 041, 756

330,307,895

1, 326,945, 205

1,871,330, 202

RECEIPTS

Deposits to retire Federal reserve bank notes and national-bank notes .
Treasury savings securities.
Other new issues of securities, including Treasury notes and certificates
Total public debt receipts -

.

.

- . . .

--

.-.

Excess of public debt retirements over the retirements chargeable against ordinary
receipts due to indicated surplus and decrease in general fund balance
'

2, 077, 508,183

Ui

-

1, 541,022, 307

* Publio-debt expenditures and public debt receipts, as shown in this statement, are exclusive of Treasury certificates issued and retired within the same fiscal year.




O

Preliminary statement showing classified expenditures of the Government for the period from July 1, 1924, to June 30, 1925
[For c o m p a r a t i v e figures a n d t o t a l e x p e n d i t u r e s for t h e fiscal year 1924, see T a b l e F , p . 468]
[On t h e basis of daily T r e a s u r y s t a t e m e n t s , u n r e v i s e d ]

J u l y , 1924

A u g u s t , 1924

September,
1924

October, 1924

November,
1924

$1, 075,392.43
39, 662.85
995, 383.84
10, 320,164. 89
29, 582,373.06
1, 958,048.86
743. 31
^ 2,
28, 270,964. 51
24, 879,091.59
18, 746,178.31
334. 29
1, 828,
766, 307. 83
31, 554,197. 27
2,227, 091. 69
2,756, 154. 65

December, 1924

J a n u a r y , 1925

ORDINARY

General e x p e n d i t u r e s :
Legislative e s t a b l i s h m e n t
E x e c u t i v e proper
State D e p a r t m e n t - . - .
•
Treasury Department
--_
War Department
D e p a r t m e n t of Justice
P o s t Office D e p a r t m e n t - Navy Department
Interior D e p a r t m e n t
D e p a r t m e n t of Agriculture
D e p a r t m e n t of C o m m e r c e
D e p a r t m e n t of L a b o r
U . S. V e t e r a n s ' B u r e a u 2__
O t h e r i n d e p e n d e n t oflices a n d commissionsD i s t r i c t of C o l u m b i a
'.
--_

$1,412, 162. 39
36, 459.11
1,427, 481. 59
10, 670,741. 54
31; 039,204.93
2,022, 763.99
44, 479. 09
28, 761,625. 61
26, 573,350.04
17, 204,520.09
1, 987,841.33
930, 337. 57
32, 556,836. 26
907. 29
1, 361,
3, 233,257.18

$1,338, 611. 88
30, 748. 60
752, 780.41
10,333, 247.52
26, 556, 318. 67
2, 071, 621.43
1 30, 309. 91
30, 848, 195. 85
24,488, 236.98
15,320, 502.39
2,102, 811.18
1,145, 627.44
31,341, 439. 41
3,035, 976.44
2,445, 391.15

154, 996,602. 76
549,455.63

159, 262, 968. 01
3 1, 323, 987.27

151, 781,199. 44
488, 780.22

362, 468.
820, 807.

154,447,147.
73,833, 509.

160, 586,955.
84, 907,250.

151, 292, 419.22
19, 687, 517. 45

825,415.
680, 552.

2, 944,140.
4, 009, 528.

584,445. 63

1,153, 041.62

3, 417, 726.
5, 703,826.
23,982.
313,256.

1,327,364.33
14, 741, 747. 83
5,000, 000. 00
639, 034. 92

1 414, 755.
1 3, 971, 700.
2,153,170.
738, 049.

I 1, 025,432.94
» 3,192,351.61
1, 759, 289. 48
1 470, 559. 80

$1,431, 339. 09
56, 557. 54
691, 522. 70
9, 864, 135.18
34,037, 313. 78
1, 886, 117. 92
130, 543.90
33, 488, 291.10
28, 522, 411.92
12, 869, 382.43
1, 723, 042. 26
918, 536. 64
31,411, 190. 03
2,375, 149.12
2, 111, 898. 31

507. 52
32, 218. 68
• 702, 329. 08
11,231, 494.18
33,426, 294.18
1, 570, 438.48
56, 913.24
28, 524, 797. 99
26,348, 058. 54
17,391, 947.10
1, 706, 148. 08
432, 531. 04
31,469, 623. 95
1,088, 647.40
3, 507, 842.71

910.40
25, 274.11
6, 285, 085. 75
10, 589, 073.64
31, 295, 870.75
1,511, 724.46
30, 074. 79
26, 581, 140. 33
26,537, 931.84
17,145, 394. 50
1, 817, 907.46
750, 786.44
31, 957, 241.76
1,730, 274. 52
1, 976, 175. 58

$1,463, 164. 94
28, 904.37
900, 521.39
10, 463,363.53
30,887, 243. 95
1,884, 038.05
156, 479.30
30,028, 257. 78
26,918, 572. 68
19, 680,546. 99
1, 874,189. 45
591, 150.11
32, 070,325. 04
2,381, 896. 25
2,829, 371. 33

Total
..
D e d u c t unclassified i t e m s .

161, 356, 344.12
114, 416. 22

158,257, 792.17
3 286, 324.87

159,215,866. 33
378, 936.93

161,945,066. 56
3 417,401. 56

Total
I n t e r e s t on p u b l i c d e b t
R e f u n d s of receipts:
Customs
Internal revenue - _
P o s t a l deficiency
P a n a m a Canal__
O p e r a t i o n s in special accounts:
Railroads
War Finance CorporationShipping B o a r d - . . .
Alien p r o p e r t y funds

161,241,927.90
18,125, 252.19

;,-544,,117.
1,648,177.

158, 836, 929.40
118,396, 517. 67
1, 397, 057.98
15, 766, 351. 72

1, 741,868.62
12, 957, 039. 88
597, 234.79
3,219,428.63
1 8,028, 779. 79
2,189,992. 05
1, 341, 504.20

598, 065.!
574, 483.1
606,947. 05
6, 828.
688, 755.
677,189.
540, 544.

1, 739, 369.13
1475, 630.42
1 3, 452,694.80
2,973, 078. 64
1, 213, 986. 08

309,364.
915, 512.
998,121.
140,022.

1 294,665.
1 6, 516,189.
2, 045,156.
1 624, 214.

1 Excess of credits ( d e d u c t ) .
2 D u r i n g t h e fiscal year 1925 to d a t e a l l o t m e n t s for v e t e r a n s ' reUef h a v e been m a d e t o t h e T r e a s u r y D e p a r t m e n t i n t h e a m o u n t of $394,840, to t h e W a r D e p a r t m e n t in t h e a m o u n t
of $4,075,300.07, t o t h e N a v y D e p a r t m e n t in t h e a m o u n t of $1,536,800, a n d t o t h e Interior D e p a r t m e n t in t h e a m o u n t of $51,250. Similar a l l o t m e n t s in t h e fiscal year 1924 t o t h e
T r e a s u r y D e p a r t m e n o were $457,150, to t h e W a r D e p a r t m e n t $4,434,713.92, t o t h e N a v y D e p a r t m e n t $1,474,600, a n d t o t h e I n t e r i o r D e p a r t m e n t i n t h e a m o u n t of $44,791. E x p e n d i t u r e s u n d e r these a l l t t m e n t s , however, a p p e a r as e x p e n d i t u r e s of t h e respective d e p a r t m e n t s a n d n o t of t h e V e t e r a n s ' B u r e a u .
^Add.
'




Q
W

K!

O

>

Preliminary statement showing classified expenditures of the Government for the period from July 1, 1924t to June 30, 1925—Continued
J u l y , 1924

A u g u s t , 1924

September,
1924

October, 1924

November,
1924

$2, 539,925. 00
37, 240. 64
27, 960. 73
1 728. 25
153,114. 08

D e c e m b e r , 1924

J a n u a r y , 1925

ORDINARY—continued
L o a n s t o railroads
Adjusted service certificate fund
I n v e s t m e n t of t r u s t funds:
G o v e r n m e n t life i n s u r a n c e _.
Civil service r e t i r e m e n t .
-D i s t r i c t of C o l u m b i a t e a c h e r s ' r e t i r e m e n t
Foreign service r e t i r e m e n t
General railroad contingent
_

$99.876, 249.15
$2,203, 845.07
12,305,433.94
23, 519.48

$1,816,412.50
1 21,524.17

$4,403,625. 00
1 112,129. 27

68,964.47

18,449. 27

60, 983.72
6, 977.98

206,324. 80

- . 207,987, 231.43

Total ordinary

$2,110, 075. 00

188,636,121. 67

298,256, 815.43

320, 303, 506.19

8,200,000. 00

110,174, 000. 00
208,600. 00

P u b l i c d e b t r e t i r e m e n t s chargeable against o r d i n a r y receipts:
Sinking fund
P u r c h a s e s from foreign r e p a y m e n t s
Received from foreign g o v e r n m e n t s u n d e r d e b t settlements
Received for estate taxes
P u r c h a s e s a n d r e t i r e m e n t s from franchise t a x receipts
(Federal reserve a n d F e d e r a l i n t e r m e d i a t e credit
banks)
.. .
.
Forfeitures, gifts, etc
Total..-

---

-

--

--

T o t a l e x p e n d i t u r e s chargeable against o r d i n a r y receipts

233, 754,966.33

$2,336,312. 50
1 987, 652. 88
22,015. 69
30,977. 39
64, 568.17
254,924, 026. 36

2, 570,893. 75
55,997. 68
43,870. 51
292,306,039.97

,

H

90,950,000.00
47,550. 00

H

7,585. 20

7,950.00

152, 200. 00
5,500. 00

3,618.75

3,450. 00

5,000. 00

150,800. 00

7,585. 20

8, 255,500. 00

110,540,300. 00

3,618. 75

3,460. 00

90,955,000. 00

150,800. 00

207,994, 816. 63

196,891,621. 67

408, 797,115. 43

320,307,124.94

233, 758,416. 33

345, 879,026. 36

292,456,839.97

7,585. 20
14,351, 844. 35

8, 255,500.00
-8,060,448.89

110,540,300. 00
494, 732,858.13

3, 618. 75
16,186, 707. 23

3,450. 00
33, 388,735. 86

90,955,000. 00
1,170,828,420.62

150, 800. 00
30, 296,903. 79

14,359,429. 55

16,315,948.89

605,273,158.13

16,189, 325.98

33, 392,185. 86

1, 261, 783,420. 62

30, 447, 703. 79

PUBLIC D E B T

P u b l i c d e b t r e t i r e m e n t s chargeable against o r d i n a r y receipts (see above)
Other p u b l i c d e b t e x p e n d i t u r e s
Total public debt




O

o
C/3

Recapitulation, public debt:
Certificates of i n d e b t e d n e s s - - . . .
T r e a s u r y notes a n d certificates of i n d e b t e d n e s s (adT r e a s u r y notes
.1.'
W a r savings s e c u r i t i e s . . . _ •.
T r e a s u r y savings s e c u r i t i e s .

_.
....

Second L i b e r t y b o n d s
Third Liberty bonds
Fourth Liberty bonds
Victory notes _ . - . - L o a n of 1925
Other d e b t i t e m s
N a t i o n a l - b a n k notes a n d Federal reserve b a n k n o t e s - Total public debt

2,040, 000. 00

1,354,500.00

367,600. 00

220,300, 500. 00

2,638,000. 00

26,018,000.00

886,928, 600. 00

6, 666,500. 00
192, 665. 45
2,704,844.10
1,000.00
500. 00
550.00
2, 650. 00
995, 250. 00

" " i , 505,300. 00
150, 373. 29
2,452,915. 60
100. 00
5,350. 00
8,246, 500. 00
3, 050. 00
798,000. 00

367,896, 000. 00
148, 265.43
2, 797,762. 70

6,815,400. 00
150,543. 23
2,743,607. 75

1,984,900.00
112, 668. 08
2, 039,800. 35

3, 850. 00
10,175, 650. 00

2,650. 00
950. 00

3, 400. 00
50.00

276,337, 200. 00
87,164. 72
1,963,735. 90
1, 000. 00
3,000. 00
92,393,900. 00

812,050. 00

e i s , 800. 00

528,700. 00

50. 00
2,440,920. 00

260. 00
2,786,600. 00

3,380.00
3,135, 700. 00

1, 390. 00
3, 218,085. 00

650. 43
2, 704, 017. 00

619,800. 00
251, 900. 00
6,320. 00
3,190,900. 00

634, 650. 00
503,300.00
1,843.55
4,144,820. 00

14,359,429. 65

16,315,948. 89

605, 273,158.13

16,189,325.98

33,392,185. 86

1, 261, 783,420. 62

30,447,703. 79

200,000. 00
1, 254, 700. 00
18, 204, 416. 59
2,469, 673. 65
800.00
993, 500. 00

a

1 Excess of credits (deduct).




o

>
d

Preliminary statement showing classified expenditures of the Government for the period from July 1, 1924, to June 30, 1925
GO
February, 1925

March, 1925

April, 1925

Total July 1,
1924, to June 30,
1925

May, 1925

Total July 1,
1923, to June 30,
1924

ORDINARY

General expenditures:
Legislative establishment
-..
:
Executive proper
State Department
Treasury Department
War Department
-..-.
Department of Justice
_
-.
Post Oflice Department
----..
Navy Department-_
Interior DepartmentDepartment of Agriculture
Department of Commerce
Department of Labor
U. S. Veterans' Bureau 3
. Other independent oflSces and commissions.
District of Columbia
Total
Deduct unclassified items_
Total
-.
Interest on public debt
-.
Refunds of receipts:
Customs. _
-.
Internal revenue.
Postal deficiency.
Panama Canal
Operations in special accounts:
Railroads..-War Finance Corporation..
Shipping Board-Alien property funds
Loans to railroads
.Adjusted service certificate fund
Investment of trust funds:
Government life insurance
Civil service retirement
:....
District of Columbia teacheirs' retirement..
.Foreign service retirement
-.
General railroad contingent
Total ordinary.




$1, 279, 564. 41
41, 627. 39
953, 788. 03
13, 268, 735. 51
29, 371, 880. 87
1,857, 074. 91
2 124,581. 51
28,894, 574. 48
22,183, 98L03
8,139, 041.94
2, 650, 477. 69
814, 740. 08
30, 522, 522. 66
2,099, 134. 25
3,384, 197. 77

$13,855, 664.29
411,
27
15, 054,408! 68
128, 232,421. 79
361,887, 888.84
23,495, 738. 96
2 79,826. 85
346,142, 001. 44
302, 440,633. 08
164, 644,283. 54
25, 782,961. 39
9, 677,841. 30
384, 715,796. 72
27, 682,657. 28
32, 713,000. 57

140,192,906.34
381,715.91

151, 626,399. 64 155,413,676. 71 137, 271, 787. 61 145, 336,759. 51
21, 035. 08
« 613,144. 08
309, 038. 34
50, 372. 73

1,836,657,369. 20
< 347,106. 72

1,829, 697, 061. 65
1, 234,150. 47

139,811, 190. 43
7,902, 205.13

151, 605, 364. 66 156, 026,820. 79 136,962, 749. 27 145, 286,386. 78
98,713,909.34 141, 740, 501. 49 74,887, 606.13
91,143, 409. 54

1,837, 004,475. 92
881,806i 662. 36

1,828,462,911.18
• 940,602,912.92

$1,169, 756. 36
35, 171. 48
565, 267.04
11,814, 397. 26
29, 733,566. 57
1,924, 854.98
28, 635. 32
25,504, 955. 77
21, 690,864.79
9,967, 737;65
2,396, 880. 76
825, 943. 32
30, 562,750. 07
1,827, 678.51
2,144, 546.47

1,277, 621.04
6,694, 205. 37
182, 067. 93
586, 503. 74
508, 609.29
704.65
2 1, 731,
2,817, 184.14
2 378,245. 85

$1,112,344. 63
29, 740. 57
473, 626. 06
11,343,157. 23
27,190,321. 36
2,148,358. 98
2 2,151. 21
26,614, 116.87
30,147, 166. 22
10,182, 111.37
2,572, 882. 90
894, 850. 58
34,953, 345. 60
1, 499,044.43
2, 467,484.05

1,559,764.34
17,202,968. 71
18,000, 000. 00
533,044. 02

$1,095, 328.17
19, 249. 68
411, 235. 28
9, 631,831. 69
29, 066,653. 35
2, 385,718. 81
35, 512. 81
33,868, 331.90
22, 200,496.28
10,437, 263. 30
2, 851,565.98
788, 904.25
34, 382,863. 05
5,193, 540. 36
3,045, 181. 80

1,389,870. 42
16, 540, 496. 07
10, 732. 93
675, 793. 57

2,830, 323.19
15,979, 161. 70

730,844. 04

933, 302. 95

20, 566, 638. 33
127, 220,161. 47
12, 638,849. 75
8, 387,099. 90

1,495,635. 78
2 469,408. 48 21, 221,680. 22
4, 566,699.17
2 2, 234, 477. 36 2 2,123,797.11 21,440,448. 50 2 1, 605,
346.15
1,869,362. 32
2,069, 205. 57
1, 053,799. 93
1,699, 310.11
2 4,115, 538. 19 3, 863,951. 45
1,009,227.15
2 240,640. 68

7, 204,992. 53
2 42,901, 758. 13
30, 304, 859. 54
4,018,131.55

22, 771,167. 74
2 52, 539,947. 20
85,491,358. 71
2 1,150,576.16
12,971,000. 00

2 34, 064. 70

2 183, 545. 30

2 55, 662. 06

2,130,162.50
21,660, 334. 66
35,025. 32
»58.4,9
2 7,526.85

4, 022,806. 25
910,594. 21
23,494. 24
2110. 77
43,207. 82

160,643,761.57 |

1, 611, 672. 86
17, 926, 672. 05

$14, 315,684.73
450, 952. 65
14, 669,456. 89
1 137,411,205. 17
348, 629,778. 55
21,134, 228.10
186, 789.29
332, 249,136. 67
328, 227,697. 11
141,116,440. 69
21,429,678. 93
6, 620,052. 65
409,120,863. 66
28,261,981. 47
25,873. 115.19

22,920,891.05
147,777,034. 05
23,216,783. 58
9,092, .818. 69

3, 333,568.75.
2 353,920. 03
19, 979.94
8,661.04

$727, 582. 07
36, 283. 89
895, 387. 41
8, 702,079. 62
29, 700,847. 37
2, 274,978. 09
532. 96
2 28,
24, 756,749. 25
21,950, 471. 17
7,559, 657. 47
2, 270,880.02
818, 126. 00
31,933, 461. 62
2,862, 317. 02
2,811, 499. 57

284,943,766.04

324,668,596.39

36, 225. 75
2,360,300.00
2 8,494.69
221, 093. 97

2 180, 633. 68
2,174, 787. 50
2 372,085. 74
50, 013. 62
296,155. 23

99, 458, 769.16
31, 991, 713. 82
9, 745, 622. 04
258, 006. 70
82,568.91
1,123,760.49

234,119, 567. 34 262,560,943. 54 3,063,105,332.26

30,410, 378. 80
8,028,336. 62
233,420. 36
4,584, 262. 92
3,048,677,965. 34

O

O

>
a
CO

Public debt retirements chargeable against ordinary receipts:
Sinking fund
Purchases from foreign repayments
Received from foreign governments under debt settlements
_
_
Received for estate taxes
Purchases and retirements from franchise tax receipts
(Federal reserve and Federal intermediate credit
banks)
Forfeitures, gifts, etc
Total

•.

Total expenditures chargeable against ordinary receipts

100,000, 000. 00
180,900. 00

306, 308, 400. 00
386,100. 00

295,987,350.00
38,609,150.00

67,843, 600. 00

641,959.88

87,934, 400. 00

158,793, 500. 00
47, 560. 00

110,878,450.00"
8,897,050.00

10,500.00

794,159. 88
208, 403. 95

3, 634,650.00
93, 200.00

466, 538,113.83

457,999, 750. 00

2 3,400. 00

4,000.00

10,000. 00

641,959.88

100,184,900.00

10,000. 00

2 3, 400. 00

155, 788,400. 00

161, 286,721.45

385,128, 656.04

324,678,696. 39

234,116,167. 34

418, 349, 343. 64

3,629, 643,446.0

3, 506, 677,715. 34

Public debt retirements chargeable against ordinary receipts (see above)
Other public debt expenditures
Total public debtRecapitulation, public debt:
Certificates of indebtedness
..Treasury notes and certificates of indebtedness (adjusted service series)
Treasury notes
---.
Treasury bonds
War savings securities
Treasury savings securities
First Liberty bonds
Second Liberty bonds
Third Liberty b o n d s - i . . .
-Fourth Liberty bonds
Victory notes...
Loan of 1925
Other debt items
National-bank notes and Federal reserve bank notes..
Total public debt..

m
Q

PUBLIC DEBT

641,959.88
137,626,227.58

100,184,900.00
962, 452, 068. 27

10,000. 00
22, 534,149. 68

2 3,400. 00
16,971, 502.15

155, 788, 400.00
513, 372,816.90

466,538,113.83
3,420,801, 683. 45

457,999,750. 00
2,848,350, 313.17

138, 268,187. 46 1,062, 636,968. 27

22, 644,149. 68

16,968,102.15

669,161, 216. 90

3,887, 339,797. 28

>

3, 306, 350,063.17
2, 238,577,000. 00

11, 363,000. 00

728,982, 500.00

5, 694, 000.00

676,500. 00

266,591, 500.00

2,152,964, 600. 00

300,000.00
802, 300. 00

800,000.00
316, 458,900. 00

1,100, 000.00
1, 653, 400. 00

900,000. 00
2,122, 300.00

1,300, 000. 00
389,886,100. 00

4, 600,000. 00
1, 373, 383,000. 00

2, 333,780. 83
2, 307,856. 75

83,996. 44
2, 582,631. 70
1,000. 00
2,000. 00

79, 258. 78
2, 607,140. 65
1, 500.00
4, 500. 00
3, 500.00
500. 00
351,800.00
1, 202,950. 00
4, 510. 25
9,841,090.00

59, 740. 50
2, 207,151. 60

61, 275. 46
2, 326,931. 45
500. 00
2, 350. 00

8,000.00
441,750. 00
111, 841,100.00
645,109.88
8, 225, 290.00

1,000. 00
511, 600. 00
2, 394,150. 00
340.13
10, 818,850. 00

138, 268,187. 46 1,062, 636,968. 27

22, 544,149. (

319,150. 00
•637,750.00
740. 05
10,044, 770. 00

7,150. 00
341,000.00
219, 000. 00
2, 060. 00
8, 423, 350. 00

21, 664,148. 79
29, 203,952. 20
5,100. 00
28,400.00
111,822,600.00
14, 350. 00
6,972,550. 00
117, 050,150. 00
666, 654. 29
68,974,392.00

16,968,102.15

669,161, 216.90

3, 887, 339,797. 28

pi

356,981, 600.00
6,000. 00
54,051,976.93
33, 405,822.10
240,450. 00
94, 469, 500. 00
410, 600, 450. 00
4,136, 500. 00
80, 751, 050.00
45, 336. 64
33, 084, 377. 60
3, 306, 350,063.17

1 Includes $12,000,000 subscription to capital'stock of Federal intermediate credit banks.
J Excess of credits, deduct.
3 Dm-ing the fiscal year 1925 to date allotments tor veterans' relief have been made to the Treasury Department in the amount of $394,840, to the War Department in the amount
of $4,075,300.07, to the Navy Department in the amount of $1,536,800, and to the Interior Department in the amount of $51,250.. Similar allotments in the fiscal year 1924 to the
Treasury Department were $457,150, to the War Department $4,434,713.92, to the Navy Department $1,474,600, and to the Interior Department in the amount of $44,791. Expenditures under these allotments, however, appear as expenditures of the respective departments and not of the Veterans' Bureau.




CO

150

REPORT ON T H E FINANCES

Receipts and expenditures on warrant basis
Thefollowing comparison of receipts and expenditures 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:
Comparison of receipts, fiscal years 1925 and 1924, on the basis of warrants issued
{net)
1926
Ordinary receipts:
Customs
Internal revenue—
Income tax
Miscellaneous taxes ,

1924

$548, 521,794.63

$545,012,115.^13

1,761,659,049.61 1,841,769,316.80
1827,786,837.92
962,630,768.41

Increase, 1925

Decrease, 1925

$3,609,679. 50
$80,100, 267. 29
124,743,930. 49

Miscellaneous—
Interest, premium, and discountInterest on loans to foreign governments
2138,634, 238.48
19, 363. 69
138,653, 692.17
Interest on miscellaneous obligations of foreign governments
21, 755,739. 46
22,031,215. 58
275, 476.12
Interest on miscellaneous obligations
32,444. 53
1,190,410.16
1,157,965. 63
Interest on overpayments under section
209, transportation
act, 1920, as amended.
34, 726.77
30,968. 23
3,758. 54
Interest on farm loan
bonds
4,443,624. 56
4,584,825. 00
141,200.44
Interest on public de4,501,922. 54
posits
4,630,099. 08
128,176. 64
Interest on advance payments to contractors..
120, 582.29
43, 213. 39
77,368.90
Dividends on capital
stock of the Panama
Railroad owned by
' the United States
350, 000. 00
1,060,000.00
700, 000. 00
Discount on bonds,
notes, and certificates of indebtedness
purchased
1,631,456.83
1,631, 466.85
Gain by exchange
16,820.93
502,833.82
519,654.76
Sales of Government propertyProceeds of sale of Government
property
(unserviceable)
1,276,495. 66
4,098, 606.66
5, 375, 002.12
Sale of ofiice material,
etc., including auction sales (General
Supply Committee)..
366,614.29
326,421.85
41, 092.44
Disposal of properties,
UnitedStates Housing Corporation
2,612,949.40
1,272,307.17
1, 240,642. 23
16, 680,191.88
Sale of war supplies
44,267, 023. 74
27,686,831.86
Sale of b u i l d i n g s ,
plants, etc. (war supplies)
310,592. 05
310, 692. 05
Sale of seal and fox
skins
225,244. 39
110,958.09
336, 202.48
Sale of public documents and charts
60,197.19
225,696. 90
285,894. 09
Sale of card indexes,
Library of Congress. .
9,892.11
149,130.32
139,238. 21
Miscellaneous Government property
398,846.32
919,981.06
621,134. 74
Public-domain receipts—
522, 222.93
. Sale of public lands J...
. 623, 633. 84
101,310.91
Receipts under mineral
3,426,995. 52
12,619,155.66
leasing acts
9,192,160.14
6,369,707.36
268, 209.41
Forest reserve fund.....
5,101, 497.95
661,377.06
National park revenues
47,922.16
699, 299. 22
1,404, 241. 03
Other
454, 685.69
949,655. 34
1 Includes $414,728.29 collections under national prohibition act, this amount being additional to
$5,359,672.89 from this source, included under miscellaneous receipts on p. 151.
2 Includes $729,096.55 applied as advance payment by Belgium on $1,000,000 principal installment due
June 15, 1926, under refunding agreement of Aug. 18, 1925.




SECRETAEY OF THE TEEASUEY

151

Comparison of receipts, fiscal years 1925 and 1924, on the basis of warrants issued
(neO—Continued
1926

1924

Increase, 1925

Decrease, 1925

Ordinary receipts—Continued.
Miscellaneous—Continued.
Federal reserve bank franchise tax and net earnings.
derived by the United
States from Federal intermediate credit banks. .
$3,123,366.70
$3,765,326.68
$641,959.88
Profits on coinage, bullion
deposits^ etc.—
$581, 563. 59
8,133, 687.23
8,715,150.82
Revenue-producing enterprises—
Opieration of properties.
United States Hous*
ing Corporation
_.
888, 023. 09
348,908.92
Funds deposited for
construction
loans
under section 11,
merchant
marine
act, 1920
20,108, 729. 48
2,938,353. 88
17,170,375. 60
Balance of funds held
by United States
Shipping
Board
Emergency Fleet
Corporation deposited under act of
Feb. 13, 1923
.—
25, 761, 631. 04
25,751,531. 04
Center Market, Wash249, 858. 66
ington. D. C-259,589: 23
9, 730. 67
Earnings from radio
250, 029. 70
service
314, 074. 60
64, 044. 90
Tolls, profits, etc., Pan22,346,539.14
ama Canal
25, 709, 662.43
3,363,023. 29
United States tele229, 031. 28
209,154.13
19,877.15
graph lines
-.
Laundry and drycleaning operations
174,184.13
1,443,840. 61
1,269, 656. 38
(War)Profits from sale of
577,498. 09
577,498. 09
ships' stores. Navy ..
20,128. 09
Other
201,834. 51
221,962. 60
Rent of pubUc buildings
1,338,130. 44
160, 225. 91
and grounds
-.
1,187,904. 53
Fees, fines, penalties, for' feitures, etc.—
11, 740.12
196, 293. 36
184, 553. 24
Alaska fund
2,962, 653. 29
2,998, 683. 02
Fees on letters patent-.
36,029. 7a
166,354. 00
164, 682. 85
""i," 771.'is'
Copyright fees
Registers'
and
receivers' fees (Land
565,877.16
681,205. 92
115,328. 76
Office)
Consular and passport
8,114,688.73
666,433. 20
7,448, 255. 53
fees
-.
Tax on circulation of
4, 275. 61
4,061, 574. 78
14, 057, 299.17
national banks
328, 594. 73
1, 275,826. 61
947,231. 88
Customs Service
Collections under enforcement of national
prohibition
act
(Treasury and Judi2 6,359.672.89
6, 507, 062.12
1,147,389. 2a
cial)
Navy fines and forfei600, 672. 34
1,419, 046. 77
818,474. 43
tures--.
542, 588. 77
816,342. 57
273, 753. 80
Naval hospital fund---.
512, 750. 00
993, 783. 50
481,033. 50
Naturalization fees
2,342, 084.89
3,197, 265. 07
5, 539,349. 96
Immigration head tax_.
2, 837,135. 93
201, 627. 60
3,038, 763. 63
Judicial
Forfeitures by contrac1,653. 03
15, 557. 35
17,210.38
tors
—
.Licenses under Federal
129,448. 48
53, 713. 42
75, 735. 06
water power act
Taxes, licenses, fines,
159, 841. 24
42,697.65
202, 538. 89
etc.. Canal Zone
364,760.17
1,475, 763. 57
1, 111, 003. 40
Other--.
-.
1 Included in this amount is $2,890.88 tax on Federal reserve bank notes.
> Additional collections from this source amounting to $414,728.29 are included under miscellaneous
taxes, internal revenue, on p. 150.




152

REPORT ON T H E FINANCES

Comparison of receipts, fiscal years 1925 and 1924, on the basis of warrants issued
{net)—Continued
1925
Ordinary receipts—Continued.
Miscellaneous—Continued.
Gifts and contributionsLibrary of Congress
gift fund and chamber music auditorium
Return of increase in
salary by Members
of Sixty-ninth Congress
-For river and harbor
improvements
For Forest Service cooperative work
Contributions by New
York Liberty loan associations
For roads, bridges, and
related works, Alaska.
Money received from
persons unknown
D o n a t i o n s to t h e
United States
Pan American Union
quotas
Other...
R e p a y m e n t of investments—
Principal of loans made
to foreign governments
Principal of sale of surplus war supplies to
foreign governments..
Liquidation of capital
stock, Federal land
banks.Principal on account of
"Relief — American
Relief Administration"
Sale of farm loan bonds.
Return of advances
made to reclamation
fund
Principal of loans made
by United States
Housing Corporation.
Assessments and reimbursementsSalaries and expenses,
national-bank examiners.
Expenses of redeeming
national currency
Assessments on Federal
reserve banks for salaries and expenses.
Federal
Reserve
Board...
Assessments on Federal
intermediate credit
and Federal and jointstock land banks for
salaries and expenses,
Federal Farm Loan
Board
Payment by German
Government under
terms of the armistice.
Overhead charges on
sales of services or
supplies (War and
^
Navy)..
Settlement of claims
(War).....
Work done by individuals, corporations,
etal




1924

Increase, 1925

$88, 050. 00

$88,050.00

3,125. 00

3,126.00
3,828,736. 06

$2,814,422. 25

2,104, 219. 23

2,618, 441. 59

1,014,312.81.
$614,222. 36
150, 000. 00

150,000. 00
79, 078. 45
5, 696.11

3,911. 54

28, 286. 90

107,365. 35

988. 99

69,936. 62
1,062.50

1, 783. 57

6,914. 27

92, 651. 74
13,907. 50

23, 217,185. 21
30,613. 86
472,456.00

5,926.28
22, 616.12
12, 846. 00

37,807,609.92

61,024,695.13
20,172. 01

10,341. 85
628,115.00

1,100,570.00

45,000.00

46,000.00
13,000,000.00

13,000,000.00
1,000,000. 00

Decrease, 1926

1,000,000.00

1,614,391.10

713,628.37

900,762.73

2,436,83L34

2,333,836.31

102,995.03

721,797.62

769,933.16

38,136.64

1,869,374.71

168,679.11
2,038,053.82

390,669.16

24,726. 21
365,932.95

14,726,154.40

14,725,164.40

399,443.37

465,238.57

66,796.20

461,940.40

786,697.81

334,667.41

267,767.86

148,919.64

108,838.21

153

SECEETAEY OF T H E TE.EASUBY

Comparison of receipts, fiscal years 1925 and 1924, on the basis of warrants issued
(neO—Continued
1925
Ordinary receipts—Continued.
Miscellaneous—Continued.
Assessments a n d reimbursem e n t s — C on t i n n e d .
P a y m e n t for q u a r t e r s ,
subsistence, a n d l a u n d r y service. V e t e r a n s '
Bureau
$1,134,057.98
Collections u n d e r grain
a n d cotton s t a n d a r d s
122,086.60
acts
General railroad con' 1,137,872.64
t i n g e n t fund
1
R e i m b u r s e m e n t of a p propriations m a d e for
1,137.72
I n d i a n tribes
E x p e n s e of i n t e r n a tional service of ice
observation a n d pa111, 638.72
trol
.
R e i m b u r s e m e n t for
Government
prop• 66,636.39
e r t y lost
D a m a g e s to Govern246,800.79
ment property
Other
1,698,644.93
D i s t r i c t of C o l u m b i a R e v e n u e s of t h e District of C o l u m b i a D i s t r i c t of C o l u m \
bia share (exclud19,902,213.46
ing t r u s t f u n d s ) . .
767,107.82
U n i t e d States share.
Miscellaneous unclassified
receiptsClothing and
small
8,192,201.63
stores fund
201,813.20
Other
Trust f u n d s G o v e r n m e n t life insurance fund—
P r e n i i u m on con38,644,010.63
verted insurance6,425,905.37
Interest..:
C ivil service r e t i r e m e n t
a n d disability f u n d I n t e r e s t on invest2,030,001.13
ments
D e d u c t i o n s , from
I n d i a n tribal
13,140.99
funds
Deductions
from
I n d i a n reimbui-saable a p p r o p r i a 6, 514. 51
tions
_..
Deductioiis
from
salaries from revenues of Virgin
Islands
_
246.00
Deductions
from
salaries p a y a b l e
by P o r t o Ric a n treasury
3,132.00
Deductions
from
cooperative employees (Agricul2,309. 88
ture)
Deferred d e d u c tions d u e civil
service retirement
and d i s a b i l i t y
fund
_
8,320.11
Deductions
from
cooperative employees, B u r e a u
of M i n e s
126. 66
Deductions
from
salaries of employees. I n s o l vent Banks Division, Office
of
Comptroller
of
362. 06
the Currency




1924

Increase, 1925

Decrease, 19

$1,134,067.98
122,086.60
$4,662,470.79

$3,614,698.25

360,616.96

369,478.23
Q

134,083.22

22,644.50

32,477.88

23,057. 51

63,163. 68
1,619,069.33

183,647.21
179,475. 60

16,491,658.99
636,471.97

3,410,654.47
121,635. 85

4,055,648.06
164,512.19

4,136,653. 57
37,301.01

34,716,888.03
4,327,469.07

3,927,122. 60
1,098,436. 30

1,484,514. 97

545,486.16

10,979.86

2,161.14

4,640.61

1,873. 90

246.00

2,444.00

688. 00

884.35

1,425. 53

3,247. 60

5,072. 51

126. 66

362. 06

154

REPORT ON THE FINANCES

Comparison of. receipts, fiscal years 1925 and 1924, on the basis of warrants issued
{net)—Continued
1925
Ordinary receipts—Continued.
Miscellaneous—Continued.
Trust funds—Continued.
Civil service retirement
and disability fund—
Continued.
Deductions from
salaries of employees. Federal
Reserve Issue and
Redemption Division, Office of
Comptroller of
$40.87
the Currency
Deductions from
cooperative employees. Secret
82.80
Service Division.
Service credit pay59,619.70
ments
Soldiers' Home perma589,857.31
nent fund
Pay of the Army de678,968.14
posit fund
Navy and Marine
481,625.16
Corps deposit funds..
Indian m o n e y s 30,670,134. 64
Proceeds of labor...
Proceeds of sale of
Indian lands and
1,422, 547. 56
timber
63, 216. 50
Other
Miscellaneous t r u s t
482, 794.47
funds..
District of Columbia
1,877,174. 78
trust funds-^
Total miscellaneous receipts, including Panama Canal and sales
469,685, 407. 64
of public lands
3, 607,653,089. 70
Total
Deduct uncovered moneys, fiscal
years 1920 and prior, and items
counter-entered in fiscal year
17,562.91
subsequent to deposit thereof
3, 607, 635, 526. 79
Add uncovered moneys,fiscal years
1920, and prior, and items counter-entered in fiscal year subse8,637.17
quent to deposit thereofAdd receipts credited direct to appropriations: 1
Proceeds of railroad securities
owned by the Government--- 143,926, 630. 98
Receipts from miscellaneous
29, 765,158.08
sources
3, 781, 335, 953.02
Total ordinary receipts
Public debt receipts:
Treasury notes (various series)
Certificates of indebtedness
1,876,578,500.00
(various series)
Treasury notes and certificates
of indebtedness (adjusted
100,000,000.00
service series) . .
Treasury (war) savings securi23, 246,670. 38
ties
102,120.00
Postal savings bonds
105,447,372. 50
Bank-note fund.
1,047,088,500.00
Treasury bonds of 1944-1954
3,152,463,162. 88
Total pubhc debt receipts
Total receipts exclusive of
6,933,799,115.90
postal
599,691, 477. 59
Postal revenues
Total receipts, including
7,633, 390,593.49
postal

1924

Increase, 1925

Decrease, 1925

$40. 87

82.80
$25,862.11

33, 657. 69

• 709,959.35

$120,102.04
678,958.^4

. 376,147.06

105,478.10

26,120, 216.15

4, 549,918.49

1,465,329.11
109,472. 28
300,012. 71

42, 781.56
56, 255. 78
182,781. 76

2,003,642. 50

126,467. 72

544, 749,637. 83
3,884,051,838.17

58, 725,878. 78
62, 235, 558. 28

133, 790,108. 97
338,634, 306. 76

28, 259.13
3, 884,023, 579.04

62, 235, 558. 28

10,696. 22
338, 623,610. 53

17, 562. 91

94,340, 205. 52
29, 618, 645. 50
4,007,899, 992. 97

8,925. 74

49, 586,425.46
246, 612. 58
112,068,496. 32

338,632, 536. 27

209, 750.00

209, 750.00

2,014,892,600.00

138,314.000.00
100,000,000.00

163, 539,816. 71
33,560. 00
28,453, 657. 50

68, 560.00
76,993, 815. 00
1,047,088,500.00
2, 207,129,184. 21 1, 224,150, 875. 00

140,293,146. 33

278,816,896.33

6,215,029,177.18 1,336,219,371.32
26,642, 699.18
672, 948,778.41

617,449,432.60

6, 787,977,965. 59 1, 362,862,070. 50

617,449,432.60

»Items of this character represent cash receipts which are credited
the expenditures showri on a
warrant^basis. It is necessary, therefore, to add back the amounts to receipts by warrants in order to
adjust to an actual cash basis.




155

SECEETARY OF T H E TREASURY
Summary of receipts by organization units
1925

1924

O r d i n a r y receipts:
$491, 304. 92
$625,696. 64
Legislative
56.89
68.84
E x e c u t i v e Office
57,499,477.74
95,983,857.34
I n d e p e n d e n t offices-_
8,109, 750.09
8, 680,978.81
D e p a r t m e n t of Agriculture
1, 718,326. 06
612,943.34
D e p a r t m e n t of Commerce
1 50, 224, 465.95
2 50, 220,187.68
D e p a r t m e n t of t h e Interior
8,496,331.93
8,988,846.24
D e p a r t m e n t of J u s t i c e . .
5, 212,024. 76
6, 731, 718. 27
D e p a r t m e n t of Labor
16, 477, 324. 85
21,043,462. 78
Navy Department
31, 374.94
P o s t Office D e p a r t m e n t
7,874,188.28
8, 301,942.45
D e p a r t m e n t of S t a t e . Treasury Department
-. 3 3,365,433,468.47 4 3,596,377,631.05
41,382,207. 67
40,891,737.60
War Department
26,074,613.33
22,563, 732.44
P a n a m a Canal
D i s t r i c t of C o l u m b i a D i s t r i c t of C o l u m b i a reve21,779,388. 24
18,495,301.49
nues, taxes, etc
U n i t e d States revenues
from District of C o l u m 757,107.82
635, 510. 97
bia sources
3, 607, 653,089. 70
D e d u c t u n c o v e r e d m o n e y s , fiscal
years 1920, a n d prior, a n d i t e m s
counter-entered in fiscal year s u b s e q u e n t t o deposit thereof

i, 884,051,838.17

Increase, 1925

$134,391. 72
11.95
8,484,379. 60
571, 228. 72
1,105,382. 72
4, 278. 27
492, 514.31
1, 519, 693. 52
4, 566,137. 93
31, 374.94
427,754.17
230,944,162. 58
490, 470.07
3, 520, 780. 89
3,284, 0.86. 75
121, 596. 85
4,649, 748. 26

281, 048, 496. 73

4,649,748. 26

281, 037, 800. 51

T o t a l o r d i n a r y receipts-.
P u b h c d e b t receipts

17,562.91

28,259.13

3,607, 635,526. 79
A d d u n c o v e r e d m o n e y s , fiscal years
1920 a n d prior, a n d i t e m s counterentered in fiscal year s u b s e q u e n t
to deposit thereof
_
A d d receipts credited direct to a p propriations: *
Proceeds of railroad securities
o w n e d b y t h e (>overnment—Receipts from miscellaneous
sources

Decrease, 1925

, 884,023,679.04

8,637.17

17, 562.91

143,926,630.98

94,340, 205. 52

49,586,425.46

29, 765,158.08

29, 518,645. 50

246, 512. 58

3, 781, 335,953.02
3,152,463,162. 88

T o t a l receipts into t h e general
fund
|6,933, 799,115.90
Postal r e v e n u e s u n d e r control of
t h e P o s t m a s t e r General
699, 591,477.59
Total receipts, including
postal revenues
7, 633, 390, 593.49

10, 696. 22

8,925. 74

4, 007, 899,992. 97
54, 482,686. 30
2,207,129,184.21 1, 224,150,875. 00

281,046, 726.25
278,816,896.33

6,215,029,177.18 1,278,633,561.30

559, 863, 622. 68

572, 948,778. 41

26,642,699.18

6,787, 977,955. 59 1, 305, 276,260.48

559,863,622. 68

1 Includes $623,533.84 sales of p u b l i c l a n d s .
2 Includes $522,222.93 sales of p u b h c l a n d s .
3 I n c l u d e s $548,521,794.63 customs receipts, a n d $2,589,445,887.43 i n t e r n a l r e v e n u e receipts.
< I n c l u d e s $545,012,115.13 c u s t o m s receipts a n d $2,794,290,085.21 i n t e r n a l r e v e n u e receipts.
5 I t e m s of t h i s character represent cash receipts w h i c h are credited against t h e e x p e n d i t u r e s s h o w n on a
w a r r a n t basis. I t is necessary, therefore, to a d d b a c k t h e a m o u n t s t o r e c e i p t s ' b y w a r r a n t s in; order t o
a d j u s t to a n actual cash basis.




156

REPORT O S T H E FINANCES
OT

Comparlsoa of expenditures, fiscal years 1925 and 1924, on the basis of warrants
issued {net) •
1925
LEGISLATIVE

1924

Increase, 1925

Decrease, 1925

ESTABLISHMENT

United States Senate
House of Representatives
Legislative, miscellaneous
Architect of the Capitol
Botanic Garden
Library of Congress
Government Printing Oflice...
Total Legislative estabhshment
. .
.

$2, 742, 807. 23
6,815,913.63
84, 201.78
1, 304, 541. 27
102,104.61
1, 267, 285. 54
1,826,388.97

$2, 613, 511. 74
6,191,373.55
4,132. 67
945, 671. 70
115,908.51
1,048,966.60
3, 552, 710.81

14,143,243.03

14,472,175.48

$129, 295.49
624, 540. 0880, 069.11
358,969. 57
218,319.04

1,411,193. 29

$13,803.90
1, 726, 321. 84
1, 740,125 74

EXECUTIVE OFFICE

Salaries and expenses. Executive
Office

429, 852.97

448, 324. 60

18, 471.6a

I N D E P E N D E N T B U R E A U S AND
OFFICES

Alaska relief funds._
15,92,1,86
19,366. 26
Alien Property Custodian
200,66^66
285,688.54
American
Battle
Monuments
Commission
25,000.00
22,000.00
3,000.00
Arlington Memorial Amphitheater
Cornmission—:
1 3.15
216.06
1219:21
Arlington Memorial Bridge Commission
10,000.00
9,698.84
301.16
Board of Mediation and Conciliation
5.42
17,19
12.61
Bureau Of Efficiency
.
144,637. 00
143, 777.67
789.43
Civil Service Commission
^
981,238.86
973,608.79
7,630.07
Commission of Fine Arts..
5.091.49
6,107.45
Employees' Compensation Commission
2,601,628.47
2,449,903.78
161,724.69
Federal Board for Vocational Education
-.
6,724,912.16
1,061.729.22
6,663,182.94
Federal Power Commission
33,034.42
39,765.10
Federal Reserve Board
_. ,
1,676, 733:21
2,177,680.38
Federal Trade Commission
991,148.19
8, 762. 04
982,386.15
3,669,249. 09
General Accounting Office
22,826.46
3,646,422. 63
682,076.92
Housing Corporation
806,664. 97
Interdepartmental Social Hygiene
Board
1 696. 52
696.62
6,862,269.22
Interstate Commerce Commission.
9,666,072.71
Interstate Governmental Commission, Colorado River
.
8.37
18.37
178,164.81
Miscellaneous items
867.893.63
National Advisory Committee for.
Aeronautics
382,805.96
96,107. 69
286,698.27
Office of Public Buildings and
Public Parks of the National
2,415,433.00
Capital
2,415,433.00
(2)
Perry's Victory Memorial Commission
50,000.00
50,000.00
1 134,571, 732. 53 166,043,275.94
Railroads ..
312,647.68
Railroad Labor Board
4,149. 22
308,498.46
Smithsonian Institution and Na792,042.26
9,459.29
tional Museum
782,682.96
State, War, and Navy Department
Buildings
2,356,177.64
United States Coal Commission
' ' 6.V5
129,643.53
United States Food and Fuel Ad6,606. 74
6,592.61
ministrations
14.13
United States Shipping Board
. . 41,385,691.2.1
67,743,143.69
655,677.64
754,771.44
United States Tariff Commission...
U. S. Veterans' Bureau:
44,840, 722.12
1,601,031.76
43,339,690.36
Salaries and expenses
Administrative expenses,World
War adjusted compensation
913,418.22
913,418. 22
act
-Adjusted service certificate
100,000,000.00
100,000,000.00
fund
Adjusted service and depend3,100,000.00
3,100,000.00
ent pay
37,185, 797.05
40,108,669.22
Medical and hospital services-.
1 Excess of repayments, deduct.
' See State, War, and Navy Department Buildings below, and Office of Public Buildings
under War Department, p. 162.
»Now Office of Public Puildings and Public Parks of the National Capital; see above.




3,443.40
85,022.88

i, dis. 96

6, 730.68
500,947.17
124,689.06
3,812,803.49
679, 738.82

69, 528,456. 59

2,366,177.64
129,636.78
16,367,462.38
99.093.80

2.922,862.17
and Grounds

157

SECRETARY OF THE TREASURY

Comparison of expenditures, fiscal years 1925 and 1924, on the basis of warrants
issued {net)—Continued
1924

Increase, 1925

$112,362,336.76

$28,486,091.11

1925
INDEPENDENT BUREAUS AND
OFFICES—continued
U . S . Veterans' Bureau—Contd.
Military and naval compensation..
$140,848,427.86
Military and naval insurance
87,999,942; 50
(appropriated fund)
Mihtary and naval, family
1110.64
allowance.
119,707.62
Miscellaneous items,.
__
Special funds—
Military and naval insur3,742,848.02
ance.
672.25
Miscellaneous special funds.
Government life insurance fund
(trust fund)—
32,533,709.44
Investments
11,456,019.31
Expenses
68,405,109.72
Vocational rehabilitation, .
1 151,875. 22
Increase of compensation
War Finance Corporation..
. . < 499,000,000.00
Total independent bureaus
and offices , ,

Decrease, 1925

•
90,000,000.00

$2,000,057.60

29,149.81
250,000.00

29,260.45
130,292.38

1 3,194,776.94
23,288.65

6,937,624.96

30,253, 725. 51
9,029,961.17
109,058, 207.32
1, 786,375.62

2,279, 983.93
2,426, 058.14

"""

1

132,784,770.43

458,113,158.99

149,483,616. 56

29,935,861.11

23,036,206.39

943,896.87
193,955.67
10,602.83

1,084,080.43
348,981.27

905,875.05
316,915.49

40,653, 097.60
1,938,250.84
499,000,000.00

6,899,654. 72

761,263.03
1,078,976.93
198,501.61
60.56

22, eie. 40

640,381,645.98

DISTRICT OF COLUMBIA

Salaries and expensesSpecial funds:
Gasoline tax, road and street
improvements
Water department
Washington Aqueduct
Miscellaneous special funds
Trust funds:
Miscellaneous trust-fund deposits
_
Washington redemption fund
Policemen and firemen's relief
fund..
Teachers' retirement f u n d Investments. _
Current expenses
Other trust funds
Total District of Columbia. _

761, 253. 03
135,P0. 06
10,442. 27
178,205. 38
33,065.78

36,874.67

412,210.17

266,766.30
27,000.00
69,713. 22

213,404.50
27,472.68
32,336. 66

42,361.80

33,797,069.13

26,091,776.10

8,091,544. 38

375,335. 50

37,377. 67

472.58
386,250.36

DEPARTMENT OF AGRICULTURE «

8 6,562,508.89
6,486, 217.13
Salaries
«76,291.76
i, 602,394.48
1, 602,394.48
Office of the Secretary
(«)
Offices of Editorial and Distribu378, 597.18
tion Work
707,336.16
328,738.97
1,705,150.14
60,366.26
1,765,516.39
Office of Experiment Stations
221,244. 50
1,273,344.18
Extension Service
1,494,588.68
116,461. 88.
116,385.08
States Relations Service . .
1 76. 80
876,920.32
7,064, 608.16
Bureau of Animal Industry
7,941, 528.48
Meat Inspection, Bureau of AniP?'mal Industry
_..
3,777, 562. 75
663,053. 78
4,440,616. 63
2,936,766.45
539,676. 21
Bureau of Plant Industry
3,476,431.66
4,616,132.90
4,864,806. 32
9,480,938.22
Forest Service
977,418. 66
373,956.92
Bureau of Chemistry..
1,351,375. 58
72,478.05
278,623.39
Bureau of Soils
351,101.44
242, 203. 02
1, 702,392. 57
Bureau of Entomology
1,944, 695. 59
763, 364. 93
94,633. 69
Bureau of Biological Survey
857, 998. 62
355,367. 50
63,845. 27
409, 212. 77
Bureau of Public Roads
3,067, 697. 93
1,027,908.16
4,096,606. 09
Bureau of Agricultural Economics
41,639. 80
630,716. 85
Federal Horticultural Board
672,356. 65
551, 571. 59
1, 697,384. 73
Weather Bureau
.
2,148,956.32
Lands for protection of watersheds
359,052.37.
879,850.45
and streams
.
620, 798.08
89,770,320. 25
15,173, 684. 65
104, 944,004.90
Road construction
3,234,241.23
3,168,459. 57
Increase of compensation
75,781.66
1 Excess of repayments, deduct.
< Repayment on account of retirement of capital stock, carriedto surplus fund.
, 8 A large part of the increases and decreases between the expenditures of 1925 and 1924, as shown in this
statement, under the several bureaus of the Department of Agriculture is due to the fact that for 1924 there
was maintained on the books of the Treasury a general salary account, i. e., "Salaries, Department of
Agriculture,'' whereas for 1925 such salaries have been carried in separate accounts under the respective
bureaus and offices.
« Expenditures for 1924 included in salaries and miscellaneous.




158

REPORT ON T H E FINANCES

Comparison of expenditures, fiscal years 1925 and 1924, on the basis of warrants
issued {net)—Continued
1925

1924

Increase, 1925

Decrease, 1926

D E P A R T M E N T OF A G R I C U L T U R E —

continued
Enforcement of insecticide act, general expenses..
_
Cooperative agricultural extension
work
,.
Division of Accounts and Disbursements.
Library
Bureau of Home Economics
Bureau of Dairying
Miscellaneous
Special funds:
Cooperative work. Forest Service
Payments to States and Territories from national forest
funds
Other special funds
Total Department of Agricul. ture.. _ .

•
• $149,156.38
5,859,606.00
66,675.04
64,275. 57
101,284. 60
439,821. 61
849, 546.96

(0
$5,820,816.89

1,631,178.36

2,431,378. 22

2, 226, 675. 97

1, 301,848. 22
686,457. 73

143,653,183. 79

38,788.11
66,675.04
64, 275. 57
101, 284. 60
439,821. 61

$781,632.40

204,802. 25

1,321,422. 66
637,027. 72

159,727,804. 30

$149,156.38

19, 574.44
50, 569.99
27,425,185. 47

11,350, 564.96

DEPARTMENT OF COMMERCE

Office of the Secretary..
Bureau of Foreign and Domestic
Commerce
Bureau of the Census
Steamboat Inspection Service
Bureau of Navigation..!
Bureau of Standards
Bureau of Lighthouses
Coast and Geodetic Survey
Bureau of Fisheries
Patent Office...
Increase of compensation.
Miscellaneous.
Total Department of Commerce

1,010,000. 73

881,433.80

128, 566.93

2,677, 502. 60
.8 4,845,186.04
1,024,357. 73
483,448.41
1,906,713. 57
9,414, 292. 09
2, 262,905. 74
1, 365,076.17
0 940, 715. 78
949.97
. 12,779.43

2,393, 067. 01
1,771,811. 70
860,384.30
351,025. 22
1, 653,819. 56
8,639,874. 74
1,978, 951. 87
1,109, 273. 34

284,435. 59
3,073,374. 34
163,973. 43
132,423.19
252,894. 01
774,417. 35
283, 953.87
255, 802.83
940, 715. 78

1,871,510.28
801. 71

11,977. 72

25,943,928. 26

21,511; 953. 53

6,302, 535. 04

(10)

1,870, 500. 31

1,870,560.31

D E P A R T M E N T OF THE INTERIOR

Interior civil:
1,559,542,64
1,754,087.84
194,545. 20
Office of the Secretary
116,319. 80
General Land Office
789, 600. 42
673,280. 62
1,897,624.97
Public Land|Service
4,922,854.46
6,820,379.43
Bureau of Pensions212,651.86
Salaries and ekpenses
1,609,555. 52
1,397,003.66
Army pensions
209,833,459. 21
219,558,900.31
9,725,441.10
Navy pensions
7,943,335.00
8,157,811. 67
214,476. 67
Fees of examining surgeons
. 644,630.21
644,843.07
212.86
Civil service retirement
and disability f u n d Investments _
1,717,285. 42
9,745,622. 04
8,028,336.62
256,553. 27
Current expenses
8,881,552.31
8,624,999. 04
282,294.94
Patent Office '
112,025,822.56
2,308,117.50
Bureau of Education
193,677. 78
792,883.66
699, 205. 87
Colleges for agriculture and mechanic arts
2,650,000. 00
2,650,000. 00
Office of Architect, Capitol
11 8,003. 20
1 9,208. 71
3
1,205. 61
Reclamation Service100,207.09
General expenses
70,008.71
170,216. 80
Reclamation fund
3,829,284. 36
6,610,636.31
2,781,361.96
60,318.39
Geological Survey
1,665,270. 02
1,604,95L63
Bureau of M i n e s 232,902.55
General expenses
2,002,543.87
1,769,641.32
Adjustment and payment
of mineral claims, act of
570,485. 93
Mar. 2, 1919
761,422. 62
180,936.69
^ Included under Bureau of Agricultural Economics.
8 Includes $3,0*6,163.16 for census of agriculture.
• Expenditures of Patent Office prior to transfer to Department of Commerce under Executive order of
Metrch 17, 1925, amounting to $2,025,822.56, are included under Department of the Interior, as above.
1 Under Department of the Interior in 1924.
0
1 Patent Office was transferred to Department of Commerce by Executive order dated Mar. 17,1925.
1
Expenditures thereunder subsequent to Apr. 1,1925, amounting to $940^715.78, are shown under Department of Commerce, above.
1 Covers only expenditures under 1922 and prior accounts. For expenditures under later accounts
*
see legislative establishment, p. 156.




159

SECBETARY OF THE TEEASXJRY

Comparison of expenditures, fiscal years 1925 and 1924, on the basis of warrants
issued {net)—Continued
1925

1924

I n c r e a s e . 1925

Decrease, 1926

. D E P A R T M E N T OF T H E I N T E R I O R —

continued
Interior civil—Continued.
National parks
Beneficiaries
Territorial g o v e r n m e n t s
Alaska R a i l r o a d i^
Increase of compensation
Miscellaneous

Total Bureau
Affairs .

of

$1,694,729.23
1,895,784.83
32,800. 66
2,837,289. 59
1,580,619.09
716. 42

$885,091.07

268,130,820. 72

T o t a l Interior civil
B u r e a u of I n d i a n Affairs:
C u r r e n t a n d contingent expenses
Fulfilling t r e a t y stipulations
Miscellaneous s u p p o r t s
I n t e r e s t on I n d i a n t r u s t funds
S u p p o r t of I n d i a n schools
Miscellaneous expense
Trust f u n d s . . . .

$2,579,820.30
1, 660,409.90
276,244.16
2,100,697. 67
69,611.36
21,121. 56

277, 506,870.94

6,406,559. 68

1,687,164. 53
860,562. 02
759,762. 91
796,104. 04
5,557,445. 58
3,827,063.18
25,267,354. 56

2,274,765. 63
711,906.40
688,489. 70
755,466. 25
4,648,917. 33
3,937,519.65
33,736,960.96

148,655. 62
71,273. 21
40,637. 79
908, 528. 25

38,755,456.82

46,764,025. 92

1,169,094.87

9,167,663. 97

306,886,277. 54

324,260,896.86

7,575,654. 55

24,950, 273. 87

$235,374. 93
243,443. 50
736,691. 92
1,610,907. 73
20,405.14
15,782,609.90

587,601.10

110,456. 47
8,469,606. 40

Indian

T o t a l D e p a r t m e n t of t h e Interior
D E P A R T M E N T OF JUSTICE

D e p a r t m e n t of Justice proper:
Salaries a n d expenses
D e t e c t i o n a n d prosecution of
crimes
Increase of compensation
Judicial:
C o u r t s , salaries, a n d expenses
Fees of jurors a n d witnesses
Penal institutions
Miscellaneous
T o t a l D e p a r t m e n t of J u s t i c e . .

1,941,683.73

1,693,558. 92

248,124.81

2,329,139.08
119,048. 68

2,282,735. 49
846,607. 00

46,403. 59

11,841,487.35
3, 111, 136.36
4,190; 130.58
2,679.48

10,419,067.19
2,748,984. 70
3,000,910. 53

1,422,420.16
362,151. 66
1,189,220. 05
2,579. 48

23,397,107.90

20,991,863. 83

3,270,899. 75

667, 735. 58
271,422.15
5,468,095.90
' 760,167.94
1, 243,107. 81
108, 757. 62
221,922. 78
1 4,931.22
12,129. 63

573,835.78
234,810.10
3,492,719.57
738,427. 46
1,064,148; 84
102, 615. 32
206,928.12
653,031. 59
4, 357. 42

93, 899. 80
36, 612.05
1,975,376. 33
21, 740.48
178, 958.97
6,142. 20
14, 994. 66

8, 748,408.09

6,970,874. 20 |

2, 335, 496. 70

2, 414,161. 37
1,432, 528. 64
44, 373. 98
.96,287.94
252, 720. 72

2,825,128. 85
1,794,238.68
38,513.48
76,983. 40
204,187. 50

4,152,917. 43
3, 376, 894. 91
4,191, 564. 29
17, 737, 729. 46
15,989,078.06
10, 731, 728. 43

3,159, 423. 28
4, 470, 454. 68
3, 978, 370. 77
15,425, 696.97
15,893, 667.21
11,141,181. 55

865,655. 68

865, 656. 68

D E P A R T M E N T OF LABOR

Office of t h e Secretary '
B u r e a u of L a b o r Statistics
B u r e a u of I m m i g r a t i o n
B u r e a u of N a t u r a l i z a t i o n
Children's Bureau
Women's Bureau
.
E m p l o y m e n t service
Increase of compensation
Miscellaneous
T o t a l D e p a r t m e n t of L a b o r . .

657,962. 81
7, 772. 21
657,962.81

NAVY D E P A R T M E N T

Office'of t h e Secretary:
P a y , miscellaneous
Other items
...
. _
Office of N a v a l Records a n d L i b r a r y
Office of J u d g e A d v o c a t e G e n e r a l . .
Office of Chief of N a v a l O p e r a t i o n s .
B u r e a u of N a v i g a t i o n :
Organizing t h e N a v a l R e s e r v e
Force
..
Transportation
Other items v
B u r e a u of E n s i n e c r i n c
B u r e a u of C o n s t r u c t i o n a n d R e p a i r .
B u r e a u of O r d n a n c e

1 Excess of repayments, deduct.
1 Formerly Alaskan Engineering Commission.
8




410.967. 48
361, 710.04
5,860. 50
19,304. 54
48, 533.22
993,494.15
1,093, 559. 77
213,193. 52
2, 312,032.49
95,410.85
409,453.12

160

REPORT ON T H E FINANCES

Comparison of expenditures, fiscal years 1925 and 1924, on the basis of warrants
issued {net)—Continued
1926

1924

Increase, 1925

Decrease, 1926

NAVY DEPARTMENT—continued
B u r e a u of Supplies a n d A c c o u n t s :
$113, 780,001.61
P a y of t h e N a v y .
.
21,957, 670.18
Provisions
14,154,996.07
Fuel a n d t r a n s p o r t a t i o n
687,213.05
Freight
8,861,945. 69
Maintenance
1 5,240,446. 35
N a v a l s u p p l y a c c o u n t fund
Clothing a n d small stores spe8,225,472. 91
cial fund
1 3, 596,609.80
Other items
2,987, 624. 70
B u r e a u of M e d i c i n e a n d S u r g e r y . . .
10,092,103.21
B u r e a u of Y a r d s a n d D o c k s
13,178, 692.45
B u r e a u of A e r o n a u t i c s
Naval Academy
2, 024,160.76
Marine Corps:
16, 047, 968.86
Pay
6,371,617.86
General expenses
767,192. 68
Other items
38,181,361.93
Increase of t h e N a v y
. ..
16, 624,251.10
General a c c o u n t of a d v a n c e s
850,373. 63
Miscellaneous

$112,084, 626. 63
10, 712,054.20
13,431,463.14
2,487,026. 71
6, 784, 591.05
5,932,503.29

$1,695,374.98
11,245,615. 98
723, 632.93

6,744,539.04
1,019,267.09
3, 772, 622.21
11,779,131.13
16, 718,965. 68
2,367, 353. 52

1,480,933.87

15, 429,371. 04
9,182,468. 92
624,807.19
54, 650,913. 22
1 9, 644, 937. 67
1,046,404. 90

$1,799,813.66
2,067,354. 64
11,172,948.64
4,616,876.89
785,097.61
1, 687,027. 92
3,640,263.23
343,192.77
618,697.82
142,385.49

2,810,841.07
16,469,661.29

26,269,188. 67
195,031.27

326,366,466. 65

.324,129,997.66

47,930,813.65

23,216,783.68
96,941. 83

1 13.25
12,638,849.75
129,241. 61

13.25
10, 577,933.83

. . .

Total PostOfflceDepartment-

23, 313, 725.41

12, 768,078.11

10, 577, 947. 08

1, 460,376. 32
14, 425, 529.12

1,167, 212. 68
13,062,685. 69

303,163.64
1,372,943. 63

15,885,906.44

14,209,798.27

1, 676,107.17

Total N a v y Department

46, 696,344. 66

POST OFFICE D E P A R T M E N T

P o s t Office D e p a r t m e n t proper
Deficiency in postal r e v e n u e s
Miscellaneous expenses

32,299.78
32,299.78

D E P A R T M E N T OF STATE

D e p a r t m e n t of S t a t e p r o p e r
Foreign intercourse
T o t a l D e p a r t m e n t of State.—
TREASURY D E P A R T M E N T

Office of t h e Secretary
Office of t h e Chief Clerk a n d Superintendent
General S u p p l y C o m m i t t e e
Office of Commissioner of A c c o u n t s
and Deposits
Division of Bookkeeping a n d W a r rants
.. -.
Division of Deposits
P u b l i c D e b t Service
W o r l d W a r Foreign D e b t C o m m i s sion
..
Division of A p p o i n t m e n t s
Division of P r i n t i n g . . .
Division of M a i l a n d Files
Office of D i s b u r s i n g Clerk
C u s t o m s Service:
A d m i n i s t r a t i v e salaries
Collecting t h e r e v e n u e from
customs
Miscellaneous expenses
Refunds, debentures, drawb a c k s , etc
B u r e a u of t h e B u d g e t
Federal F a r m L o a n B u r e a u
Office of T r e a s u r e r of t h e U n i t e d
States
Office of C o m p t r o l l e r of t h e C u r rency

171,330. 78

59,990.27

111, 340. 51

905,169. 65
141,527.27

677,287.78

227,881.87
141, 527. 27

17, 726.00

(14)

16,681. 26

1,044. 74

18 718,263.93
17,006.48
6,310,834. 60

18 666, 539. 56
16,439.47
6,194,550.84

51, 724.37
667.01

1,911.64
62,393.97
914,886.58
19, 459. 30
61, 292. 63

361. 25
46,739. 64
1,084,256.33
15,93L50
30,034. 66

1, 550.39
15,654.33

883,716. 24

169,369. 75
3, 527. 80
21, 257.87

53, 766. 74

61,988. 95

16,302,497. 75
289, 966. 75

12, 253,444.85
172,967.81

4,049,052.90
116, 998.94

22, 429,264! 11
169,378. 40
383, 652. 76

20,467, 556. 25
136,217. 72
16 332, 669.06

1,961, 707.86
33,160. 68
50,983.70

1, 654, 984. 61

1, 345,839. 24

309,145.37

2,371, 514.17

2, 507, 543. 50

8, 222. 21

136, 029.33

1 Excess of repayments, deduct.
1 Included under office of chief clerk and superintendent in 1924.
*
1 Includes $65,000 for 1925 and $225,000 for 1924, charges on silver dollar bullion sold.
5
1 Exclusive of $12,000,000 for subscriptions to capital stock, Federal intermediate credit banks, agricul6
tural credits act of 1923; see special accounts, p. 163.




161

SECRETARY OP THE TREASURY

Comparison of expenditures, fiscal years 1925 and 1924, on the basis of warrants
issued {net)—Continued
1926

1924

Increase, 1925

Decrease, 1925

TREASURY D E P A R T M E N T — c o n t i n u e d

Internal Revenue Service:
Administrative salaries
Collecting the revenue...
Enforcement of narcotic and
prohibition acts
Miscellaneous expenses.....
Refunds, debentures, draw.backs, etc
Special funds
Coast Guard
Bureau of Engraving and Printing:
Administrative salaries
Compensation of employees
Materials and miscellaneous
expenses.
- Plate printing
Secret. Service
Public Health Service;
Administrative salaries and
•miscellaneous items
Hospital construction
Medical and hospital services..
Pay of commissioned officers,
pharmacists, acting assistant surgeons; and. other emPay of personnel and maintenance of hospitals
.
Mints and assay offices
Public buildings:
Office of Supervising Architect.
Public buildings, construction
and rent.'
Hospitals..
Quarantine stations....^
Repairs, equipment, and general expenses...
Operating expenses
American Printing House for the
Blind...
Increase of compensation
Miscellaneous
Total Treasury Department.

• $795,775.27
35,675,308.07

$684, 059. 01
33, 746, 634. 08

$111, 716. 26
1,928,673.99

10,388,360.20
4, 470. 22

8,372,380.29
2, 036.33

2, 015, 979. 91
2, 433. 89

160,174,542.09
138, 228. 72
26,814,083.21

138, 821, 789. 73
18, 358. 28
11,354,038.29

21, 352, 752. 36
119,870.44
15, 460,044. 92

407,100. 39
3, 246,966.94

213,487. 98
2, 567, 055. 59

193, 612.41
679, 911.35

1, 345, 488. 51
1, 562, 555. 60
461, 325. 04

1, 450, 829. 49
1, 338, 635. 75
414, 650. 03

223, 919. 85
46, 675. 01

1,695, 673.30
1 37,177. 21
716. 69

1, 641, 639. 34
1 2, 963. 38
1 42, 529.89

43, 246. 58

2,344,817.12

1,222,571.19

•122,245.93

5, 266,466. 77
1, 557,433.46

:, 402,125. 61
, 308,836. 24

864,341.16
248, 597. 22

203,106. 32

58, 630.14

2,489,145. 39
1 683, 941.41
7
97, 257. 51

1, 797, 102. 35
17 2, 628, 583. 49
19, 368. 07

692,043. 04

2, 054,496.49
8,970, 912. 26

5, 278,208. 96
', 203, 805. 60

"i,'767,'i66.'66'

50, 000.00
!, 967,047.83
718.85

842, 670.86

277,659,177.67

54,003,420.99

50, 000. 00
1 106,155. 59
1 146, 047. 99
317,984,148.35

$105,340.98

64,033. 96

77, 889. 44

34, 213.83

2, 044, 642. 08
223, 712. 47

10,073,203.42
13,678,450.31

WAR DEPARTMENT

Military activities:
742, 619. 99
2,992,230.42
3,734, 850.41
Office of the Secretary of War.
248, 359.15
20,117 63
268, 476. 78
General Staff Corps
,
178,887. 93
1,323, 948. 62
1, 502, 836. 66
Adjutant General's Department
6,461.46
24, 148. 46
17, 687.00
Office of Inspector General
Office of Judge Advocate Gen1,364.11
64, 243.22
6, 879.11
eral
393. 82
1,323. 05
1 6, 546,
Army account of advances
5,658,070.77
Finance Department121,160, 880. 50
123,390, 154. 22
2,229,273. 72
Pay of the Army.
891, 927. 33
844, 601. 92
47,325.41
Mileage of the Army
4, 622, 503.03
216, 657. 62
4,405,845.41
Increase of compensation i8.
1,367, 880. 39
118, 654. 99
- 1,486, 435. 38
Finance service
1,992, 507. 29
1,627, 052.47
365,454. 82
Miscellaneous iterhs
Quartermaster C o r p s 15,070,
14, 507, 192. 99
563, 776. 64
Army transportation
3,613, 852. 01
3, 781, 396. 74
167, 544. 73
Barracks and quarters
4, 229, 990. 66 . 4,567, 692. 48
'337,'60i."82
. Clothing and equipage
Construction and repair of
536. 53
563, 874. 69
22,661.84
hospitals
^81, 246. 91
1383, 996. 97
302, 750. 06
General appropriations.....
Incidental expenses of the
4,765, 259.10
4,156, 803. 72
608,455.38
Army
Inland and port storage
16, 822. 08
181, 294. 08
and shipping faciUties
164,472.00
Regular* supphes of the
12,292, 4U. 79
il, 241, 332. 82
1,051, 078. 97
Army
Roads, walks, wharves, and
693, 819.49
58, 385. 53
752, 205. 02
drainage
934, 780. 24
15,300, 383.12
16, 235, 163. 36
Subsistence of the A r m y . . .
" igExcess of repayments, deduct.
"Ilncludes $317,082.69 for 1925 and $1,890,088.57 for 1924 under hospital facilities, etc., for war patients.
i8|Exclusive of increase of compensation under Panama Canal and National Homes for Disabled VolunteerJSoldiers.

60501—FI 1925t

11




162

R.EPOR.T ON T H E FINANCES

Comparison of expenditures, fiscal years 1925 and 1924, on the basis-Kof -wajrants
issued {net)—Continued
1925

1924

WAR DEPARTMENT—continued
Military activities—Continued.
Quartermaster Corps—Contd.
Supphes, services, and
transportation
$66, 559. 25
$167,474. 96
Water and sewers at military posts
2, 111, 384. 04 a 2,086,526.11
Miscellaneous items
....
1,933,895.17
5, 292, 874. 66
Signal Corps
2,179,937. 47
2,307, 857. 90
11, 279,461. 97
Air Service
11,886,803.47
1,314, 317. 24
1, 273,171. 54
Medical Department
64, 764.10
74, 883. 86
Bureau of Insular Affairs...
1, 607, 294. 97
1,032,055. 59
Corps of Engineers
Fortifications, etc., Panama
Canal
1..
872, 689. 93
393, 963. 37
Ordnance Department1,120,600. 87
1,026, 753. 32
Ordnance service
Ordnance stores and sup92,492. 72
plies
188, 706. 74
892, 795. 68
841,191. 38
Ammunition.
Automatic rifles and manu848, 641. 59
546, 434.16
facture of arms
7, 350. 05
5, 288. 79
Nitrate plants
272,427. 85
Armament of fortifications.
1, 693,131. 09
600, 947. 97
736, 090.15
Arsenals
.*
20, 987. 91
61,475. 83
Ordnance storage facilities..
1, 558,394. 04
Miscellaneous items
1, 394, 721. 92
714, 558.49
697, 854. 77
Chemical Warfare Service..
National Board for Promotion
114,627. 43
79,055. 33
of Rifle Practice
65,494. 32
59, 719.03
Chief of Infantry...
17,414. 33
19,044. 02
Chief of Cavalry
27,156. 94
20,881. 30
Chief of Field Artillery...
249, 911. 38
235, 648. 02
Chief of Coast Artillery...
24,331, 283. 35
29,369, 725. 66
Mihtia Bureau..
Military Academy
2,280,046. 64
1, 810, 560. 85
5, 950,152. 70
8,661, 071. 60
Organized Reserves
250, 714, 592. 22
Total mihtary activities
252,.087,035.60
Nonmilitary activities:
National cemeteriesDisposition of remains of
oflicers, soldiers, and civil
325,014.01
522,135. 06
employees
'
Miscellaneous items
693,030.40
451, 801. 54
Medical DepartmentMedical and hospital serv1 12, 033. 21
ices
722, 961. 60
54,833.08
105, 080. 38
Miscellaneous items
(19)
Signal Corps
978,918. 20
Public buildings and grounds
32,441. 71
63,040. 32
under Chief of Engineers
Miscellaneous items under
1,037,420.78
1,178,310.15
Corps of Engineers
Rivers and harbors—
Improving rivers
75,294,140. 46
71,305,487. 65
Improving harbors
499^36.19
1,301,729.13
Special funds for rivers and
3,635,266. 28
3,085,281.17
harbors
Inland and coastwise water1,699,906. 69
197,274. 64
ways service
34,000.00
116,393.35
Monuments
216,621.62
143,154. 42
National military parks
National homes for disabled
volunteer soldiersMedical
and
hospital
services
7,839.86
424,839.16
8,494,176.70
6,433,091. 53
Care and maintenance
3,012,424.18
3,301,117.30
War claims and relief acts
Trust f u n d s Estates of deceased soldiers.
United States Army
46.30
Soldiers' Home permanent
789,268. 64
fund
738,584.13
Preservation of birthplace
of Abraham Lincoln
2,500. 00
3,000.00
Miscellaneous nonmilitary ac124,422. 97
tivities
656, 661. 21
Total nonmilitary activities
(exclusive of Panama Canal)
96,819,874.76
90,749,942. 74
» Excess of repayments, deduct.




Increase, 1925

Decrease, 1925

$100,915. 71
$24, 857. 93
607,341. 50
10,119. 76

3,358,979.49
127,920. 43
41,145. 70
575, 239. 38

478,726.56
93,847. 55
51,604. 30
2,061. 26

163, 672.12
16,703. 72
35, 572.10
5,775. 29
1, 629. 69
6, 275. 64
14, 263. 36
6,038,442. 31
469,485. 79
2, 710, 918. 90
18, 771,152. 77

96, 214. 0i2
302,207. 43
1,420^703. 24
135,142.18
40,487. 92

17, 398, 709. 39

197,121. 05
241, 228. 86

978, 918. 20

734, 994.81
50,247. 30
30,598. 61
140,889.37

3,988,652. 81

802,092. 94

549,985.11
1,402,631.95
73,467. 20

2,061,085.17

82,393.35

416,999.30
288,693.12

46.30
60,684. 51
500.00
632,238.24
9,346,700.11

3,276,768. 09

1 Under miscellaneous nonmiUtary activities in 1924.
9

163

SECEETAEY OP THE TEEASUEY

Comparison of expenditures, fiscal years 1925 and 1924, on the basis of warrants
issued {net)—Continued

WAR

Increase 1925

1924

1925

| Decrease, 1925

DEPARTMENT—continued

Panama Canal,
maintenance

operation

and

Total W a r Department

$9,050,509. 73

$7,141,711. 97

$1,908, 797. 76

357,957,420. 09

348, 606,246. 93

30,026,650. 64

882,014,950. 03
358,336.01

12,000,000. 00
938,740,771. 79
20 1,772,689.94

$20, 676,477.48

SPECIAL ACCOUNTS

Subscriptions t o capital stock of
Federal i n t e r m e d i a t e credit b a n k s
I n t e r e s t on t h e p u b l i c d e b t
P r e m i u m on t h e p u b l i c d e b t . .

882,373,286. 04
2,464,168,872. 77
D e d u c t r e p a y m e n t s counter-entered in fiscal year s u b s e q u e n t t o
t h e deposit-thereof.'..:.:.':•.•.....•..

952,513,461. 73
2,946,400,966.75

70,140,175. 69
350,111,065.27

832,343,159. 26

6.V35

T o t a l o r d i n a r y w a r r a n t s ex2,464,168,866. 42
penditures
A d j u s t m e n t s t o t h e general fund:
A d d credits against expendit u r e s 21—
Proceeds of railroad securities owned b y t h e Gov143,926,^630.98
ernment
Miscellaneous credits
29,765,158. 08
Relief of" J o h n B u r k e , former
T r e a s u r e r of t h e U n i t e d
States, act J u n e 3, 1922
196. 00
D i s b u r s i n g oflicers' credits,
etc., a t beginning of fiscal
year
771,932,016. 29
Unpaid warrants at beginning
1,396,323.35
of fiscal year
3,411,189,191.12
Deduct—
D i s b u r s i n g officers' credits,
etc., a t close of fiscal y e a r .
U n p a i d w a r r a n t s ; a t close'
of fiscal 3'^ear

12,000,000.00
56, 725,821. 76
1,414,353.93

344,085,919. 44

6.35
2,946,400,966.75

350, 111, 065. 27

94,340,205. 52
29,518,645. 50

49, 586, 425. 46
246,512. 58

60.00

136. 00

742,652,367.90

832,343,165.60

29,279,648.39
209, 733.87

1,606,057.22
3,814,618,302. 89

429,223, 787. 70

832,552,899. 47
427,846, 096.85

771,932,016. 29

2,565,496.84

1, 396,323. 35

1,169,173. 49

346,651,416.28
T o t a l o r d i n a r y cash expendit u r e s on basis of daily
T r e a s u r y s t a t e m e n t s , revised . 223,064,537,774.84

773, 328, 339. 64

1,169,173. 49

213.041,189,963.25

428,054, 614. 21

50.00

3,000. 00

427,846,096.85

404, 700,802. 62

PUBLIC DEBT

F i r s t L i b e r t y loan
'
..
3, 050.00
First L i b e r t y loan, converted a t 43^
per cent
2,050.00
Second L i b e r t y loan, converted a t
4J^ p e r cent
28, 400.00
T h i r d L i b e r t y loan
111, 822, 600.00
F o u r t h L i b e r t y loan
14, 350. 00
Victory L i b e r t y loan
6,941,850. 00
T r e a s u r y notes (various rates)
1,373,391,800.00
T r e a s u r y b o n d s 1947-1952-22, 240.00
Loan^of 1908-1918
L o a n of. 1925
.:
117,051,150.00
Certificates of i n d e b t e d n e s s , various issues .
T r e a s u r y notes a n d certificates of 2,152, 954, 500. 00
i n d e b t e d n e s s (adjusted service
series)
4. 600, 000, 00
50,860, 618. 69
T r e a s u r y (war) savings s e c u r i t i e s . . .
B a n k - n o t e fund
68,974, 392.00

237, 350. 00

239, 400. 00
94, 449, 650. 00
410, 587, 300. 00
4,070,100. 00
80, 639,850. 00
356,973,000. 00 1,016,418,800.00
6, 000. 00
29,260.00
117,051,150.00

94, 421 250 00
298,764, 700.00'
4,055,750.00
73, 698, 000.00^

6,000. Oa
7,020 00'

85,212,600.00'

2, 238,167,000. 00
4,600,000. 00
87, 434, 451.08
33,084,377. 50

36,673,832.3935,890,014. 50

«o Offset by $1,631,456.83 in 1924, discount on bonds, notes, and certificates purchased and covered into
the Treasury as misc^aneous receipts, p. 150.
'1 Items of this character represent cash receipts which are credited against the expenditures s hown on a
warrant basis. It is necessary, therefore, to add back the amounts to expenditures by warrants in order toadjust to an actual cash basis.
2 Exclusive of pubhc debt retirements chargeable against ordinary receipts during 1925 of $466,538,113.832
and during 1924 of $457,894,100, which amounts are included in this table under public debt expenditures.
The total expenditures chargeable against ordinary receipts during the fiscal years 1925 and 1924 were
therefore, $3,531,075,888.67 and $3,499,084,063.25. respectively.




164

REPORT ON T H E FINANCES

Comparison of expenditures, fiscal years 1925 and 1924, on the basis of warrants
issued {net)-—Continued
1925

1924

$1, 350.00

$13, 550. 00

Increase, 1925

Decrease, 1925

PUBLIC DEBT—continued
F u n d e d loan of 1907
Gold reserve increase
against
U n i t e d States notes
Miscellaneous r e d e m p t i o n s

641,959.88
1,104.41

$12, 200.00
$641,959.88

2, 526. 64

T o t a l p u b l i c d e b t expendi3,887, 311, 414.98
tures

1,422.23

3, 305, 696, 515. 22 1,174, 604,924. 38

T o t a l cash e x p e n d i t u r e s , exclusive of Postal Service,
p a y a b l e from postal reve6,951,849,189.82 '6,346,886,478.47 1,602, 659, 538. 59
nues -Postal Service, p a y a b l e from postal
599, 591,477. 59
revenues
672,948, 778.41
26, 642, 699.18
T o t a l e x p e n d i t u r e s , includ.ihg Postal Service p a y a b l e
from postal r e v e n u e s
7, 651,440, 667. 41

6,919,835, 256. 88 1, 628,302, 237. 77

592, 990,024. 62

997 696 827 24

997,696,827.24

Estimates for 1926 and 1927 compared with actual receipts for 1925
The following table shows estiinates of receipts for the fiscal years
1926 and 1927 compared with actual receipts for the fiscal 3^ear 1925:
Comparison of estimated receipts, fiscal years 1927 and 1926, with actual receipts
for the fiscal year 1925
E s t i m a t e d , 1927
Ordinary receipts:
Customs
Internal r e v e n u e I n c o m e tax
Miscellaneous taxes
Miscellaneous:
I n t e r e s t , p r e m i u m , a n d discount—
I n t e r e s t on l o a n s t o foreign g o v e r n m e n t s . .
I n t e r e s t on f u n d e d obligations of foreign
governments
I n t e r e s t on miscellaneous obligations of
foreign g o v e r n m e n t s
. .
I n t e r e s t o n miscellaneous obligations
I n t e r e s t o n farm l o a n b o n d s I n t e r e s t on p u b l i c deposits
P r e m i u m s on v e t e r a n s ' t e r m i n s u r a n c e
D i v i d e n d on capital stock
G a i n b y exchange
I n t e r e s t on railroad securities
.
Sales of G o v e r n m e n t p r o p e r t y Sale of w a r supplies .
Miscellaneous G o v e r n m e n t p r o p e r t y
Public-domain r e c e i p t s Sale of n u b l i c l a n d s
R e c e i p t s u n d e r m i n e r a l leasing acts
Forest-reserve fund
National park revenues
.
Other - •
F e d e r a l reserve a n d F e d e r a l i n t e r m e d i a t e
credit b a n k franchise t a x
;
Profits on coinage, bullion deposits, etc
Revenue-producing e n t e r p r i s e s E m e r g e n c y Fleet C o r p o r a t i o n , construct i o n loan funds
Other
P a n a m a C a n a l , tolls, profits, etc
.
R e n t of p u b h c buildings a n d g r o u n d s

E s t i m a t e d , 1926

1 $551, 750, 000. 00 1 $556, 760, 000. 00
1,880,000,000. 00
874,000, 000. 00

1,880, 000,000. 00
864,000,000,00

A c t u a l , 1925

$547, 561, 226.11
1, 760, 537,823. 68
828, 638,067. 90

275. 00

33, 500. 00

735,922.15

142,969, 338. 00

142, 936, 991. 00

137,898,316.33

20, 375,857. 00
2, 775, 743. 00
2, 317, 500. 00
4, 317, 500. 00

20,406, 555. 00
2, 718,495. 00
3,442, 500. 00
4, 514, 500. 00
10, 500, 000. 00

16, 000. 00
16, 568,372. 00

16, 000. 00
16, 674,425. 00

21, 755, 739. 46
1,345, 719. 22
4,443, 624. 56
4, 501, 922. 54
13, 475, 001. 02
350, 000. 00
519, 654. 75
22, 779, 738. 44

6, 600, 000. 00
13, 738, 083. 00

14,110,000.00
10,689, 630. 00

16, 580,191. 88
9, 610, 369.80

500,000. 00
10, 000, 000. 00
6, 882, 600. 00
974,000. 00
1,042,000.00

500, 000. 00
P 10,000,000.00
5,182, 565. 00
736,100. 00
1, 043, 000. 00

623, 533. 84
9,192,160.14
6 101 497 95
699,299.22
949, 655. 34

1,000, 000. 00
7,400, 000. 00

1, 000,000.' 00
8,450,000. 00

641, 959. 88
8, 715,150. 82

4,819, 036. 00
5,863, 320. 00
21,000,000. 00
1, 054,443. 00

4, 557, 444. 00
6, 246,820. 00
21,000,000. 00
1,079, 443. 00

2,938, 353.88
4 111 941 21
23, 089, 957. 87
1, 338,130. 44

i Includes $1,750,000 estimated by Department of Commerce for tonnage tax, receipts on account of
which are covered into the Treasury as customs revenue.




SECEETARY OF THE TEEASUEY

165

Comparison of estimated receipts, fiscal years 1927 and 1926, with actual receipts
for the fiscal year 1925—-Continued.
Estimated, 1927

Estimated, 1926

Miscellaneous—Continued.
Fees, fines, penalties, forfeitures, etc.—
Fees on letters patent
$3, 724, 270. 00
$3, 385, 700. 00
Consular and passport fees
7,913,000.00
7,920,000. 00
Tax on circulation of Federal reserve and
national banks
3,510,495.00
3, 357, 947. 00
Customs service
1,450,000. 00
1, 300,000. 00
Collections under enforcement of national
prohibition act (Treasury and Judicial).
5, 000, 000. 00
5, 000, 000. 00
Navy fines and forfeitures.__
850,000. 00
850, 000. 00
Naturalization fees..
650, 000. 00
.650,000.00
Immigration head tax.
3,150,000.00
3,155,000.00
Judicial...
3, 280,000. 00
3, 280, 000. 00
2,574,625.00
Other..
_
2, 466, 975. 00
Gifts and contributions—
For river and harbor improvements
3, 500, 000. 00
3, 500, 000. 00
For Forest Service cooperative work
1,800,000. 00
1,800, 000. 00
Other...
251, 439. 00
251,439.00
Repayments of investmentsPrincipal of loans made to foreign governments
Liquidation of.capital stock, Federal land
banks
250,000. 00
•300, 000. 00
Principal of bonds of foreign governments
under fundin g agreements
32,190,470. 00
31,187, 243. 00
Principal of sale of surplus war supplies
to foreign governments.
36,090. 00
70,000. 00
Sale of farm loan bonds
26,000,000.00
55, 000,000. 00.
Return of advances made to reclamation
fund..
1, 000, 000. 00
1, 000,000. 00
Principal of loans made by United States
524, 500. 00
Housing Corporation.
623, 000. 00
1, 233, 600. 00
40, 302,498. 00
Principal of railroad securities
351,500.00
1, 781,945.00
Shipping Board securities...
Assessments and reimbursementsSalaries and expenses, national-bank, ex2,300, 000. 00
2, 260, 000. 00
aminers
558,084. 00
606, 765. 00
Expenses of redeeming national currency..
8, 500, 000. 00
8, 000, 000. 00
.. Reclamation
Assessments on Federal reserve banks for
salaries and expenses. Federal Reserve
2, 500, 000. 00
Board
2, 500, 000. 00
3,000,000. 00
2, 000,000. 00
General railroad contingent fund Payment by German Government under
13,101,000.00
terms of the armistice
Work done by individuals, corporations,
1,015, 440. 00
1, 005, 680. 00
et al
1, 867, 982. 00
1,841,207.00
Other
District of ColumbiaRevenues of the District of Columbia—
.District of Columbia share (exclud'25,805,000.00
'••• ing'thist-funds)
_
25,104, 500. 00
United States share
5,418,826.00
7, 250, 596. 00
MisceUaneous unclassified receipts
2, 232,143. 00
1, 867,097. 00
Army and Navy miscellaneous collections
Trust f u n d s Government life insurance f u n d 45, 712,000. 00
40, 500, 000. 00
Premium on converted insurance
8, 500,000. 00
7, 250, 000. 00
Interest
Civil service retirement and disability
2, 479, 927. 00
2, 265, 427. 00
fund
690,000. 00
690, 000. 00
Soldiers' Home permanent fund
Army, Navy, and Marine Corps deposit
1,353, 200. 00
funds
1, 353, 200. 00
Indian moneys—
2, 000, 000. 00
2, 066, 000. 00
Proceeds of labor
Proceeds of sale of Indiaii lands and
19,160,000. 00
19, 400, 000. 00
timber
30, 000. 00
Other
.•_...
30,000. 00
353. 200. 00
Miscellaneous trust funds
356, 200. 00
2. 120, 000. 00
District of Columbia trust funds
2. 250, 000. 00
Total miscellaneous receipts, including
Panama. Canal and sales of public
lands.,>
579, 966. 942. 00
518, 780, 203. 00
Total ordinary receipts, exclusive of postal
revenues.
3,824, 530, 203. 00 3,880,716,942.00

Actual, 1925

$2,962, 653. 29
7, 448, 256. 53
4,061,574.78
1, 275,826. 61
5, 359, 672. 89
1,419.046.77
993, 783. 50
3,197, 265. 07
2,837,135.93
3, 431,977. 44
3,828, 735. 06
2,104, 219. 23
433,396. 79
132, 512. 71
472, 456. 00
23, 084, 672. 50
30, 513. 86
13, 000, 000. 00
1, 000, 000. 00
1,614,391.10
121,131, 682. 54

2, 436,831. 34
721,797.52
6, 359,899. 79
1,869, 374. 71
1,137, 872. 54
14, 725,154. 40
257, 767.86
4,611,744.08

19,902,228.39
757,107. 82
2 8,812, 638. 82
8,151, 536. 88
38, 644,010. 63
5, 425, 905. 37
2,123, 796. 71
589,857. 31
1,160, 583. 30
30, 670,134. 64 "
1, 422, 547. 66
53, 216. 50
482, 794. 47
• 1,877,174.78
643,411,666.73
3, 780,148, 684. 42

2 After deducting' $324;919.6r for warrant distribution in exceess of cash receipts on basis of daily
Treasury statements. •




166

REPORT ON T H E FINANCES
Estimated receipts for the fiscal years 1927 and 1926
Fiscal year
1927

Source of revenue

Fiscal year
1926

Customs

1 $551, 750, 000

'$556,750,000

Internal revenue (under revenue act approved June 2, 1924):
Income tax
Miscellaneous internal revenue (see details below)

1,880, 000, 000
874, 000, 000

1,880, 000, 000
864, 000, 000

2, 754, 000, 000

2, 744, 000, 000

110,000,000
2,000,000
25. 000, 000
380, 000, 000
-•33,000,000
160, 000, 000
700, 000
750, 000
3, 850, 000
50, 000
650, 000
1,000
350, 000
650, 000
8, 000, 000
94, 000, 000
2,100, 000
50, 000, 000
2, 000, 000
3, 000, 000

110, 000, 000
4,000,000
25, 000, 000
365, 000, 000
:33,000,000
150, 000, 000
700, 000
750, 000
3, 800, 000
40,000
600, 000
3,000
350, 000
600, 000
8, 000, 000
93, 000, 000
2, 200, 000
51, 000, 000
2, 000, 000
3, 200, 000

Total internal re v e n u e . . - .
Miscellaneous internal revenue—
Estate tax
Gift tax
,
Alcoholic spirits, etc
Tobacco and tobacco manufactures.....
Admissions and dueslli.
..^
Automobiles, trucks, parts, etc...
Cameras and lenses
Photographic films and plates
Firearms, shells, and cartridges
—
Smokers' articles
Coin-operated devices and machines
,Mah-jongg and similar tile sets
Yachts and motor boats
^
^
Art works
Jewelry, watches, clocks, etc
Corporation capital stock tax
Bowling alleys, pool and billiard tables
Stamp taxes, including playing cards...
Brokers
Oleomargarine, adulterated butter, etc
Miscellaneous taxes, including occupational taxes, receipts under
national prohibition and narcotic laws, and delinquent taxes
under repealed laws
Total

—-

-

Miscellaneous ordinary receipts by departments and Government
establishments:
Legislative.-•
Executive and independent offices
Department of Agriculture
Department of Commerce
Department of the Interior
Department of Justice
--Department of Labor
Navy Department
^
Department of State
Treasury Department..
War Department
Panama Canal
District of Columbia
—
Total miscellaneous ordinary receipts
Total estimated ordinary receipts

•9, 000

10, 757, 000

874, 000, 000

864, 000, 000

538,850
100,073, 360
9,493, 020
4,406, 270
47,158,879
8, 566,600
4,750,250
7,916, 200
8,108,733
245,474,241
33, 238,800
21,000,000
28,056, 000

527,140
137, 376, 008
7,874, 330
4,019, 700
46,387,831
8,536,600
4, 785, 250
9,871, 200
8,115, 733
276, 652,053
27, 595,997
21,000,000
27, 224, 500

618, 780, 203 !

579,966,942

3,824, 530, 203 i

', 716,942 .

»Includes $1,750,000 estimated by Department of Commerce for tonnage tax, receipts on account of
which are covered into the Treasury as customs revenue.




SECRETARY OF THE TREASURY

167

\

Estimates for 1927 and appropriations for 1926
APPROPRIATIONS FOR 1926

Appropriations made for the fiscal year 1926 and for prior
years.during the second session of the Sixty-eighth Congress, including estimated permanent and indefinite
appropriations and appropriations for the Postal Service
payable from postal revenues
$4, 157, 344, 514. 91
Deduct:
Postal Service for 1926 payable from
the postal revenues
$636,269,415.00
Postal deficiencies of prior years, payable from postal revenues
14, 987, 026. 6o
Deficiencies and supplements for prior
years
400, 570, 427. 95
1, 051, 826, 869. 60
Total appropriations for 1926, exclusive of deficiencies
and Postal Service payable from postal revenues,
and excluding also repayments under revolving
fund appropriations, repayments to appropriations, and appropriations of unexpended balances. ^ 3, 105, 517, 645. 31
Comparison of the estimates for 1927 with the appropriations for
1926 shows an increase in the 1927 estimates of $50,612,713.35, as
exhibited in the table following, without, however, including in the
figures repayments under revolving fund appropriations, repayments to appropriations, and appropriations of liu expended balances,
the effect of which on the appropriations is shown on pages 47 to
49 of the report for the fiscal year 1920.
Estimates of appropriations for 1927 compared with appropriations for 1926
[Excluding Postal Service payable from the postal revenues]
1927 estimates,
including permanent annual

1926 appropriations, including
revised permanent annual

Increase, 1927
estimates over
1926 appropriations (+),
decrease (—)

-f $1, 583, 379. 90
$14, 915, 001. 80
$16,498, 381. 70
Legislative-48, 000. 00
489, 960. 00
441,960. op
Executive Office
Independent offices:
-58, 570. 00
189, 220. 00
130, 650. 00
Alien Property Custodian
M-800, 000. 00
800, 000. 00
American Battle Monuments Commission...
Arlington Memorial Bridge Commission.i;..
+2, 500, 000. 00
2, 500,000. 00
354, 320. 00
-f 94, 290. 00
448, 616. 00
Board of Tax Appeals
.-..
150,350.00
150, 350. 00
Bureau of Efficiency
_
- 6 , 500. 00
1, 001, 692. 00
1, 008,092. 00
Civil Service Commission
-1,205.00
5, 295. 00
Commission of Fine Arts
6, 500. 00
+440, 540. 00
2, 742, 04.0. 00
Employees' Compensation Commission
2, 301,500. 00
-16,380.00
8,210,620.00
Federal Board for Vocational Education
8, 227,000. 00
+100. 00
31,400.00
Federal Power Commission
31, 300. 00
-11,000.00
997, 000. 00
Federal Trade Commission
1, 008,000. 00
+12,440.00
3, 701,
960. 00
3, 714, 400. 00
General Accounting Office
-69, 517. 00
674, 398. 00
743, 915. 00
H ousing Corporation
._
6,853, 962. 00
-820, 652. 75
Interstate Commerce Commission
_
6, 033, 309. 25
534, 000. 00
513,000. 00
-21,000.00
National A d visory Committee for Aeronautics.
Office of Public Buildings and Public Parks of
2 2, 282, 505. 00
+11,345.00
2, 293,850. 00
the National Capital
-11,585.00
296,805. 00
285, 220. 00
Railroad Labor Board
-15,780.00
874, 020. 00
858, 240. 00
Smithsonian Institution
-22, 500. 00
699,000. 00
721,500.00
Tariff Commission
-205.00
345. 00
550. 00
United States Geographic Board
I After adding $5,662,465 increase for revised estimates covering principal and interest on the public debt.
«Includes increase of $32,040 for transfer from War Department, and decrease of $92,415 for transfer to
Department of Commerce.




168

REPORT ON T H E EUsTANCES

Estimates of appropriations for 1927 compared with appropriations for 1926—
Continued
1927 estimates,
including permanent annual

Independent offices—Continued.
United States Shipping Board
U . S . Veterans' B u r e a u Salaries and miscellaneous
Military and naval compensation
,
Medical and hospital facilities and services.
•
^
Adjusted service and dependent pay
Adjusted service certificate fund
Vocational rehabilitation
Military and naval insurance
Indigent in Alaska, special fund
District of Columbia
Department of Agriculture.
_,
Department of Commerce
Department of the Interior:
Civil
Pensions and Pension Office
Indian Service
Department of Justice
Department of Labor
Navy Department:
Pay of the Navy
Provisions, maintenance, fuel, and transportation
"
_
._
Marine Corps
1..
Increase of the Navy
Other items under Navy Department
Post Office Department (exclusive of Postal
Service)
State Department
Treasury Department:
Collecting the revenue
Refunds, drawbacks, etc., of revenue
Public buildings, construction, operating expenses, repairs, equipment, etc
WarOther items under Treasury Department..
Department:
Military activitiesPay of the Army
,
Quartermaster Corps, subsistence, supphes, transportation, etc., of the Army..
Militia Bureau..
Other mihtary activities
Nonmilitary activitiesRivers and harbors
Soldiers' homes
Panama Canal, operation and maintenance
,
Other nonmilitary activities
,
Interest on pubhc debt
Sinking fund..
Other public debt retirements chargeable against
ordinary receipts
Total, excluding Postal Service payable
from the postal revenues.

1926 appropriations, including
revised permanent annual

Increase, 1927
estimates over
1926 appropriations (+),
decrease (—)

$14,198, 574. 00

$24, 330, 000. 00

-$10,131,426. 00

44,165,000. 00
140,800, 000. 00
39,000,000.00

95. 000, 000. 00
15, 000. 00
35, 626, 579. 00
140, 717, 753. 00
30, 402,847. 00

45, 700, 000. 00
127, 000, 000. 00
35, 000, 000. 00
12, 000, 000. 00
50, 000, 000. 00
38,000, 000.00
98, 000, 000. 00
15, 000. 00
36, 032, 853. 00
138, 075, 191. 00
2 28,542,129. 00

-1,535,000.00
+13,800,000.00
+4, 000,000. 00
-12,000,000.00
+90, 000, 000. 00
-38, Q O 000.00
O,
- 3 , 000,000. 00

25, 382,958. 00
193, 971, 000. 00
31, 613,644. 00
24, 367, 027. 00
8, 567, 305. 00

8 29,692, 333. 50
199,095,000. 00
33,468, 270. 00
24,205, 822. 00
8,627, 625, 00

- i , 309, 375. 50
-6,124,000. 00
-1,854,626.00
+161, 205.00
-60,320.00

120, 000, 000. 00

117,000,000. 00

+3,000,000. 00

43, 550,000. 00
23,672, 500. 00
• 35, 775, 000. 00
99,871,930. 00

45, 060,000. 00
24,349, 650. 00
20,444, 000. 00
96, 008, 728. 00

-1,510,000.00
-677,150. 00
+16,331, 000. 00
+3,863, 202. 00

140, 000, 000. 00

-406,274.00
+2, 642, 567. 00
+1,860, 718. 00

16, 614,932. 64

16, 277, 652. 51

+337, 280.13

53,419,860. 00
21,915, 000. 00

53, 678, 060. 00
21, 527, 500. 00

-258,200. 00
+387,600. 00

13, 586,390. 00
68, 643,463. 63

13, 238, 586. 00
65, 264, 258. 50

+346,804. 00
+3, 379, 206.13

120,816, 598. 00

121, 304, 067. 00

-487,469. 00

59, 340, 754. 00
30,827, 252. 00
50,132, 046. 00

61, 346,991. 00
29,863, 746. 00
48, 242,446. 00

-2,006,237.00
+963, 606. 00
+1,889, 600. 00

56, 037,600. 00
9, 018, 900. 00

59, 252,990. 00
9, 031, 200. 00

-3,216,390. 00
-12,300.00

7, 639, 094. 00
1, 829, 281. 00
795, 000, 000. 00
339,423, 648.44

8, 735, 366. 00
* 1, 989,126. 00
820,000,000.00
325,304,445. 00

-1,096,272.00
-159,844.00
-26,000,000.00
+14,119, 203.44

176,159, 750. 00

175,124,150. 00

+1,035,600.00

3,166,130,358.66 13,105,517,645.31

+50, 612, 713. 35

J After adding $5,662,465 increase for revised estimates covering principal and interest on the public debt.
' Includes increases of $5,629,380 and $92,415 for transfers from Department of Interior, and Office of
Public Buildings and Pubhc Parks of the National Capital, respectively.
8 Exclusive of $5,629,380 transfer to Department of*Commerce.
* Exclusive of $32,040 transfer to office of Public Buildings and Public Parks of National Capital.

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.
A. W.

MELLON,

Secretary of the Treasury.
To the SPEAKER OF THE H O U S E OF REPRESENTATIVES.




EXHIBITS AGCOMPANYING THE REPORT ON THE FINANCES

60501—FI 1925t




12

169

•

EXHIBITS
EXHIBIT

1

STATEMENT OF THE PUBLIC DEBT OF THE UNITED STATES, JUNE 30, 1925
Detail
INTEREST-BEARING

A m o u n t issued

A m o u n t retired

Amount outstanding

DEBT

Bonds:
2 per cent consols of 1930
_
i._
2 per c e n t P a n a m a Canal loan of 1916-1936
2 per c e n t P a n a m a C a n a l loan of 1918-1938
3 per cent P a n a m a C a n a l loan of 1961
_
.'_-3 per cent conversion b o n d s of 1946-1947
J...
2 H per cent postal savings b o n d s (first to t w e n t y - e i g h t h s e r i e s ) .

$646, 250,150.00
54, 631,980.00
30,000,000.00
50,000,000.00
28, 894, 500.00
- 11,995,880.00

F i r s t L i b e r t y loan
3M per c e n t b o n d s of 1932-1947...
C o n v e r t e d 4 per cent b o n d s of 1932-1947
C o n v e r t e d 4M per cent b o n d s of 1932-1947
Second converted 43^ per cent b o n d s of 1932-1947

1,989,455,550.00

37,935,900. 00

Second L i b e r t y loan
4 per cent b o n d s of 1927-1942
C o n v e r t e d 4 ^ per cent b o n d s of 1927-1942..

3,807, 865,000.00

$599, 724, 050. 00
48, 954,180. 00
25,947,400.00
49, 800,000. 00
28, 894, 500. 00
11,995,880.00

$46, 526,100. 00
5, 677,800. 00
4,052, 600. 00
200,000.00

$765,316. OiO. 00
$1,409,995,950.00
5,243, 350. 00
532, 788,200. 00
3,492,150.00

O
O

1,951,519, 650. 00
703,306,250. 00
21,091.600.00
3, 083,467,150. 00
3,104, 558, 750.00
T h i r d L i b e r t y loan—
43^ per cent b o n d s of 1928
F o u r t h L i b e r t y loan—
4 ^ per cent b o n d s of 193^1938

4,175, 650,050.00

1, 290, 272, 700. 00

2,885,377, 350.00

6,964,581,100.00

640,099,900.00

6, 324,481, 200. 00

763, 962,300.00
1,047, 088, 500. 00

14,000.00

763,948, 300. 00
1,047,088, 500. 00

335, 141, 300.00
617, 769, 700.00
940,100. 00
366, 981, 500.00
668, 201,400. 00
50, 000,000.00

35,481,400.00
2,091,800.00
72,017,800.00
11,201,:600.00

299, 659, 900. 00
615,677,900.00
414, 922, 300. 00
355, 779, 900. 00
668, 201,400. 00
50,000, 000. 00

391,369, 500.00
219,462,000.00
124,247,000.00
60,000,000.00

161,793,500.00
40,000, (WG^ 00

229, 576, 000. 00
179,462, 000.00
124,247, 000.00
45,400,000.00

14,265, 936, 950.00
Treasury bonds—
4 K per cent b o n d s of 1947-1952..
4 per cent b o n d s of 1944-1954—
Note^:
T r e a s u r y notes—
Series B-1925
Series A-1926
Series B - 1 9 2 6 . .
Series A-1927
Series B-1927
Adjusted service series

1,811,036,800.00

2,404,241,400.0a
Certificates of i n d e b t e d n e s s :
Series TS-1925
Series TD-1925
Series T J - 1 9 2 6 . .
A d j u s t e d service series...




4,600,000.00

578,685,000.00

o

Treasury (war) savings securities:!
Treasury (war) savings certificates, series 1921.__
5...
Treasury savings certificates, series 1921, issue of Dec. 15; 1921..
Treasury savings certificates, series 1922, issue of Dec. 15; 1921..
Treasury savings certificates, series 1922, issue of Sept. 30,1922.
Treasury savings certificates, series 1923, issue of Sept. 30, 1922.
Treasury savings certificates, series 1923, issue of Dec. 1, 1923...
Treasury savings certificates, series 1924, issue of Dec. 1, 1923...
Tlirift and Treasury savings stamps, unclassified sales, etc

22, 691,715. 73
2, 378, 390. 35
123, 966, 576. 40
20, 265, 328. 55
165, 887,895. 25
28, 413,620. 85
109, 707,052.40
007,595. 28

11, 186, 529.32
1, 810, 424^ 85
96, 933, 452. 25
15, 053, 033.90
134, 172, 088: 25
24, 462, 754.15
203, 221. 35
3,868, 587. 28-

11, 505,186. 41
567, 965. 50
27, 033,124.15
5,212,294. 65
31,715, 807.00
3,950, 866. 70
11, 503,831. 05
4,139, 008.00

385,690, 091. 35
Total interest-bearing debt outstanding..

20,210,906,251.35

M A T U R E D D E B T ON WHICH I N T E R E S T HAS CEASED

(Payable on presentation)
Old debt matured at various dates prior to Apr. 1,1917...
CertiiQcates of indebtedness, at various interest rates, matured
.-..
Spanish War loan of 1908-1918.-.
•
'dH per cent Victory notes of 1922-1923
AH per,cent Victory notes of 1922-1923 (with serial letters " A " to " F " ) . .
4M per cent Victory notes of 1922-1923 (with serial letters " G " to " L - ' ) .
Treas.iiry notes, series A-1924
L
^
Treasury notes, series B-1924
Treasury notes, series A-1925
".
Treaiiiry notes, series C-1925
4 per cent loan of 1925
__
_

o

280,460. 26
711, 500. 00
244,820;00
40, 300.^00
217, 350; 00
511,050. 00
355,300. 00
432,000. 00
948,300. 00
063,100. .00
438,750. 00

Total outstanding matured debt on which interest iias ceased..

o
30,242,930.26

D E B T B E A R I N G NO I N T E R E S T

(Payable on presentation)
Obligations required to be reissued when redeemed:
United States notes
Less: Gold reserve
-.
Obligations that will 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
.t".
Total outstanding debt bearing no interest.

346,681, 016.00
153,620,985. 51

193, 060, 030.. 49

K!

53,012. 50
80, 014, 519. 50
1,995,430.63
275,122,993.12

Total gross debt 2
20, 516, 272,174.73
' Amounts issued of Treasury (war) savings certificates of the series of 1921 are on basis of reports of sales taken at issue price; amounts retired are on basis of redemption value.
Amounts issued and amounts outstanding of Treasm-y savings certificates, issue of Dec. 15, 1921, series of 1921 and 1922, issue of Sept. 30, 1922, series of 1922 and 1923, and issue of
Dec. 1,1923, series 1923 and 1924, are on basis of net redemption value.
2 The total gross debt June 30, 1925, on the basis of daily Treasury statements was $20,516,193,887.90 and the net amount of public-debt redemptions and receipts in transit, etc.,
was $78,286.83.
!•




Statement of the public debt of the United States, June .30, 1925—Continued
Detail

.,

'

.

Matured interest obligations, etc:
Discount accrued (partly estimated) on
cates series 1918 ^
Discount accrued (partly estimated) on
cates, series 1919 ^
•
Discount accrued (partly estimated) on
cates series 1920 ^
Discount accrued (partly estimated) on
cates, series 1921 •
•
Treasury checks outstanding
_.
Disbursing officers'checks outstanding

Treasury (war) savings certifi. . .
Treasury (war) savings certifi.^
Treasury (war) savings certifi- - _.
Treasury (war) savings certifi'.

--

-

Balance held by the Treasurer of the United States as per daily Treasury
statement for June 30,1925
_ ..
Add: Net excess of receipts over disbursemnts in June'reports subsequently
received
.
..
.
_.._j_
Net debt including matured interest obligations, e t c '

.

Amount issued.

Amount retired

Amount outstanding

$53,115,692.18
8, 747,300. 00
2, 251, 010. 00
2, 353, 850. 00
2, 428,917.89
2, 565, 496. 84
71,479, 255. 37

$142,941, 522. 28
20,659, 213,697. 01

217,835,732. 09
2,143,708. 73

o

219, 979,440.82
20,439, 234, 256.19

3 Treasury (war) savings certificates, series of 1918, 1919, and 1920, matured Jan. 1, 1923,1924, and" 1925, respectively. The entire outstanding principal amount, taken at issue
price less amounts retired on basis of redemption value, has already been charged out, so that the balance still outstanding appears as discount accrued, partly estimated.
^ 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.
fi No deduction is made on account of obligations of foreign governments or other investments.




o

a

Detail of outstanding interest-oeanng issues as shown above, June 30, 1925
Authorizing act

Title
NTEREST-BEARING

When redeemable or payable

Date of issue

Interest payable

DEBT

Bonds:
Consols of 1930
,
Panama Canal loan of 1916-1936.
Panama Canal loan of 1918-1938Panarn Canal loan of 1961
Conversion bonds
Postal savings bonds (first to twenty-eighth
series)
First Liberty loan—
3K per cent bonds of 1932-1947
Converted 4 per cent bonds of 1932-1947..
Converted 4J^ per cent bonds of 1932-1947.

Mar. 14, 1900
I/June 28, 1902, and Dec. 21,
It 1905.
-do
Aug. 5, 1909, Feb. 4, 1910,
and Mar. 2, 1911.
Dec. 23, 1913..
Mune25, 1910.
Apr. 24, 1917
Apr. 24, 1917, Sept. 24, 1917..
Apr. 24, 1917, Sept. 24, 1917,
as amended.
do

Second converted 434 per cent bonds of
1932-1947.
Second Liberty loan—
4 per cent bonds of 1927-1942..
Sept. 24, 1917
.1
Converted i}4 per cent bonds of 1927-1942. Sept. 24, 1917, as amended.
Third Liberty loan—
434 per cent bonds of 1928
do
Fourth Liberty loan—
434 per cent bonds of 1933-1938
..do..
Treasury bonds—
434 per cent bonds of 1947-1952
..do.,
4 per cent bonds of 1944-1954..
Notes:
Treasury notes—
Series B-1925
Series A-1926
.
Series B-1926
Series A-1927
Series B-1927
._
Adjusted service s e r i e s ^ , . . , . . . . , . . ,




Rate of
interest

.do..
do .
do
do...
do
do
do,.

Per cent
2
2
2

Apr. 1, 1900
Aug. 1, 1906
Nov. 1, 1908
June 1, 1911

Redeemable after Apr. 1, 1930..
/Redeemable after Aug. 1, 1916..
IPayable Aug. 1, 1936...
I/Redeemable after Nov. 1, 1918.
IPayable Nov. 1, 1938...
Payable June 1, 1961..

Jan. 1, Apr. 1, July 1, Oct. 1.
>Feb. 1, May 1, Aug. 1, Nov. 1.
Do.
Mar. 1, June 1, Sept. 1. Dec. 1.

Jan. 1, 1916-1917.. I Payable 30 years from date of issue.. Jan. 1, Apr. 1, July 1, Oct. 1.
I/Jan. 1, July 1,1911- Redeemable on and after 1 year from
date of issue.
23^1 I 1925.
Jan. 1, July 1.
Payable 20 years from date of issue..
3

{

3K June 15, 1917
4 Nov. 15, 1917
4M May 9, 1918
4 ^ Oct. 24, 1918
4

Nov. 15, 1917..

4^1 May 9, 1918...

—.do

/Redeemable on or after June 15, 1932. •June 15, Dec. 15.
\Payable June 15, 1947.
Do.
-.do..
Do.
..do
Do.
.dor.

Payable Sept. 15, 1928

Mar. 15, Sept. 15.

/Redeemable on and after Oct. 15,1933;
jJApr. 15, Oct. 15.
IPayable Oct. 15, 1938..

4Jil Oct. 16, 1922..

/Redeemable on and after Oct. 15,1947|
Do.
IPayable Oct. 15, 1952
/Redeemable on and after Dec. 15,1944
June 15, Dec. 15.
\Payable Dec. 15, 1954

4

Dec. 15, 1924.
June 15, 1922
Mar. 15, 1922

434 Aug. 1, 1922
43^ Jan. 15, 1923..

m May 15, 1923.
Jan. 1, 1925...

o

/Redeemable on or after Nov. 15,1927. JMay 15, Nov. 15.
IPayable Nov. 15, 1942
—.
Do.
..do...

Oct. 24, 1918...

4^1

O
W

Payable Dec. 15, 1925..
Payable Mar. 15, 1926..
Payable Sept. 15, 1926..
Payable Dec. 15, 1927.
"
" ~
Payable Mar. 15, 1927
/Redeemable after Jan. 1, 1926..
\Payable Jan. 1, 1930,-.

June 15, Dec. 15.
Mar. 15. Sept. 15.
Do.
June 15, Dec. 15.
Mar. 15, Sept. 15.
Jan., L

zn

Detail of outstanding interest-bearing issues as shown above, June 30, 1925—Continued
>4^
Title

Authorizing act

Rate of
interest

Date of issue

Sept. 24, 1917, as amended..
do
. . do
do
. do

Per cent
2H
3
3
4
U

Sept. 15, 1924......
Mar. 16, 1925
June 15, 1925
Jan. 1, 1925
Jan. 3, 1921

When redeemable or payable

Interest payable

INTEREST-BEARING DEBT—Continued
Certificates of indebtedness:
Series TS-1925
Series TD-1925
. . . ---Series TJ-1926
Adiu'sfed service series
Treasury (war) savings certificates
Treasury savings certificates, issue of Dec. 15,1921.

do...

Treasury savings certificates, issue of Sept. 30,1922

do

Treasury savings certificates, issue of Dec. 1,1923.

do

Payable Sept. 15, 1925.....Mar. 15, Sept. 15.
Payable Dec. 15, 1925...
iJune 15, Dec. 15.
Payable June 15, 1926
Dec. 15, June 15.
Paj'-able Jan. 1, 1926.
.
At maturity.
Redeemable on demand; payable At maturitv or redemption.
Jan. 1, 1926.
Do.
M3^ Various dates from Redeemable on demand; payable
five years from date of issue.
Dec. 15, 1921.
24 Various dates from
do
Do.
Sept. 30, 1922.
241^ Various dates from
Do.
do..
Dec. 1, 1923.

O

o

1 If held to maturity, Treasury (war) savings certificates yield interest at rate of 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.
2 Treasury savings certificates of the issues dated Dec. 15, 1921, and Dec. 1, 1923, yield interest at about 43^ per centper annum compounded semiannually if held to maturity
and about 33^ per cent per annum compounded semiannually if redeemed before maturity. Issue dated Sept. 30, 1922, yields interest at about 4 per cent per annum compounded
semiannually if held to maturity and about 3 per cent per annum if redeemed before maturity.




a

SPJCRETARY OF T H E TREASU.RY

175

EXHIBIT 2
PRELIMINARY STATEMENT OF THE PUBLIC DEBT, OCTOBER 31,
1925
[On basis of daily Treasiiry statements]
Bonds:
Consols of 1930.......:
. Panama's of 1916-1936
Panama's of 1918-1938
Panarda's.bf i96i:Jl
Conversion bonds
Postal savings bonds

$599,724,050.00
48,954,180.00
2.5,947,400.00
49,800,000.00
28,894,500.00
12,234,220.00

.:
'.

First Liberty loan of 1932-1947
Second Liberty loan of 1927-1942
Third Liberty loan of 1928
Fourth Liberty loan of 1933-1938

1,951,516,550.00
3,104,648,450.00
2,802,473,150.00
6,324,478,300.00

'....'

Treasury bonds of 1947-1952..i
Treasury bonds of 1944-1964

763,948,300.00
1,047,088,600.00
•

Total.bonds
r
Notes:
Treasury notes—
Series B-1925, maturing Dec. 15,1925
Series A-1926, maturing Mar. 15, 1926
Series B-1926, maturing Sept. 16, 1926
Series A-1927, maturing Dec. 15, 1927
Series B-1927, maturing Mar. 16, 1927..:
Adjusted service series, maturing Jan. 1, 1930

:.......

Total interest-bearing debt
Matured debt on which interest has ceased:
Old debt matured at various dates prior to Apr. 1,1917
Spanish War loan of 1908-1918
Loan of 1926
Certificates of indebtedness
Treasury notes
_.
:
3M per cent Victory notes of 1922-23
4 ^ per cent Victory notes of 1922-23—
Called for redemption Dec. 16, 1922
Matured May 20, 1923..
1

:....,.

1 Net cash receipts.
2 Net redemption value of certificates outstanding.




2,404,241,400.00 .

596,045,000.00

381,021,436.99
20,140,915,436.99

^

_•.

Deposits for retirement of national-bank and Federal reserve bank
notes
Old demand notes and fractional currency
Total gross debt

1,811,036,800.00

179,462,000.00
124,247,000.00
251,936,000.00
40,400,000.00

Treasury (war) savings securities:
Treasury (war) savings certificates, series 19211
11,056,032.28
' Treasury savings certificates, series 1921, issue of Dec. 15, 19212....
1,800,655.40
Treasury savings certificates, series 1922, issue of Dec. 15,1921 2....
95,304,037.10
Treasury savings certificates, series 1922, issue of Sept. 30,1922 2 . . .
14,867,577.10
Treasury savings certificates, series 1923, issue of Sept. 30,1922 2 . . . 132,369,072.70
Treasury savings certificates, series 1923, issue of Dec. 1,1923 2
• 24,029,195.05
Treasury savings certificates, series 1924, issue of Dec; 1,1923 2
' 96,774,602.40
Thrift and Treasury savings stamps, unclassified sales, etc
3,820,264.96

Debt bearing no interest:
United Statesnotes
Less gold reserve

14,183,016,450.00

16,759,607,600.00
299,669,900.00
615,677,900.00
414,922,300.00
355,779,900.00
668,201,400.00
60,000,000.00

Treasury certificates:
Series TD-1925, maturing Dec. 15,1925
Series TJ-1926, maturing June 15, 1928
•Series TJ-2-1926, maturing June 15,1926
Adjusted service series, maturing .Tan. 1,1926..

$765, 654,350.00

—

1,280,170.26
243,860.00
1,086,100.00
654,000.-00
4,669,800.00
38,100.00
1,851,000.00
4,012,400.00

13,735,430.26

346,681,016.00
153,620,985.51
193,060,030.49
56,330,954.50
2,048,442.98

251,439,427. 97
20,406,090,295.22

EXHIBIT 3
CD.

SUMMARY STATEMENT OF TRANSACTIONS IN INTEREST-BEARING AND NONINTEREST-BEARING
STATES SECURITIES FOR THE FISCAL YEAR ENDED JUNE 30, 1925
Bonds, notes, and certificates
of indebtedness

Transactions

Amount
I. Transactions in interest-bearing securities (as affecting the outstanding public
debt):
$20,568, 282,390.00
A. Interest-bearing securities outstanding June 30,1924
B. Interest-bearing securities issued during the fiscal year 1925 (see Exhibits 4 and 16)—
1. Upon original subscriptions against cash received . . _
..
2. Upon exchange, conversion, etc., for securities of equal par value
retired
. • . . __ .
3. Upon adjudicated claims for replacement
C. Total interest-bearing securities to account for (Items A and B-4)
D. Interest-bearing securities retired during the fiscal year 1925 (see Exhibits 5 and 16)—
1. Account of redemption
.
..
.
. . . .
2. Account of exchange, conversion, etc., for securities of equal par
value issued
3. Account of loss or destruction (covered by insurance or bonds of
indemnity)
.

. . __

E. Securities outstanding June 30, 1925, which matured during the fiscal
year (see Exhibit 6)
F. Total interest-bearing securities outstanding June 30,1925 (see Exhibits
7 and 16)
O. Total interest-bearing securities accounted for (Items D-4, E, and F ) . .




28,531, 993

Amount

$413,304,039. 66

Pieces i

Total
Amount

$20,981,586,429. 66

Pieces »

28, 531, 993

o
o

3,023, 769,120.00

80,725

2 23,247,204. 21

3,047,016,324. 21

80,725

3,177,468,820.00
1,131,370.00

1,242,810
2,789

1,415,465.00
154,710.00

3,178,884,285.00
1,286,080.00

1,242,810
2,789

H

6,202, 369,310.00

4. Total securities issued

4. Total securities retired

Pieces

Treasury (war) savings
securities

UNITED

1,326,324

24,817,379. 21

6,227,186, 689.21

1,326,324

H

438,121,418. 87

27, 208, 773,118.87

29,858,317

50,861,152. 52

3,796, 397, 852. 52

1,415,465.00

3,178,884,285.00

26, 770, 651, 700. 00 29, 858, 317

3,745,536, 700.00

430, 816

3,177,468,820.00

4, 204, 230

1,286,080.00

1,131,370.00

2,773

154, 710.00

6,924,136,890.00

4, 637, 819

52,431, 327. 52

6,976, 568, 217. 52

430,816
4, 204, 230
2,773
4, 637,819

21,298, 650.00

28,038

21,298, 650. 00

28,038

19, 825, 216,160.00

25,192,460

385, 690,091. 35

20,210,906,251. 35

25,192,460

26, 770, 651,700.00

29,858, 317

438,121, 418.87

27,208,773,118.87

29, 858, 317

M

a
U2.

I I . T r a n s a c t i o n s in interest-bearing securities a n d securities w h i c h m a t u r e d prior
t o J u l y 1,1924 (as affecting t h e a c c o u n t a b i h t y of t h e T r e a s u r y D e p a r t m e n t a n d
its a g e n t s ) :
A. Securities on h a n d J u n e 30,1924—
1. U n i s s u e d securities in D i v i s i o n of L o a n s a n d C u r r e n c y (see E x h i b i t 8)
2. U n i s s u e d securities in F e d e r a l reserve b a n k s a n d other T r e a s u r y
agencies (see ( E x h i b i t 9)
3. R e t i r e d pre-war securities n o t previously r e p o r t e d (see E x h i b i t 10).
4. T o t a l securities on h a n d J u n e 30,1924
B . Interest-bearing securities received from B u r e a u E n g r a v i n g a n d P r i n t ing d u r i n g t h e fiscal year 1925 (see E x h i b i t 8)
C . Securities received for r e t i r e m e n t d u r i n g t h e fiscal year 1925:
1. A c c o u n t r e d e m p t i o n —
(o) I n t e r e s t - b e a r i n g securities (see I t e m I, D - 1 a b o v e ) . :
(6) Securities m a t u r e d prior t o J u l y 1, 1924 (see E x h i b i t 2 2 ) . . .
2. A c c o u n t exchange, conversion, etc.,. for securities of e q u a l par
value—
(o) I n t e r e s t - b e a r i n g securities (see I t e m I, D - 2 above)
..
3. Account loss or d e s t r u c t i o n (covered b y i n s u r a n c e on b o n d s of
indemnity)—
(a) Interest-bearing securities (see I t e m I , D - 3 above)
4. T o t a l securities received for r e t i r e m e n t
D . T o t a l securities to a c c o u n t for ( I t e m s I I , A-4, B , a n d C-4)
E . Securities issued d u r i n g t h e fiscal year 1925—
1. U p o n original s u b s c r i p t i o n against cash received (see I t e m I, B - 1 ,
above)
2. U p o n exchange, conversion, etc., for securities of e q u a l p a r v a l u e
retired—
(a) I n t e r e s t - b e a r i n g securities (see I t e m I, B - 2 , a b o v e ) .
3. U p o n a d j u d i c a t e d claims for replacement—
(a) I n t e r e s t - b e a r i n g securities (see I t e m I, B - 3 , a b o v e ) . .
4. T o t a l securities i s s u e d .

10,180,987,330.00

12,833,225

232,110,175.00

3, 266,164

10,413,097, 505.00

16,089,389

1,260,983,450.00
451,404,757. 53

940,757
14,591

125, 628, Oil. 75

806,996

1,376, 611,461.75
461,404, 757. 53

1,747,753
14, 591

11,883,375,537.53 i 13,788,573

357,738,186.75

4,063,160

12,241,113, 724. 28

17,851, 733

6, 766,152, 600. 00

935,789

6, 756,162, 600.00

935, 789

3, 745,536,700.00
21,296,970.00

430, 816
78,978

3 66,486, 300. 26

5,874,670

3,812,022,000. 25
21, 296, 970. 00

6, 305,486
78,978

3,177,468,820. 00

4,204,230

1, 415,465. 00

6,218

3,178,884, 285. 00

4, 210, 448

1,131,370.00

o
H

2,773

164,710.00

1,247

6,945, 433,860. 00 i 4,716, 797

8,055,475. 25

5, 882,135

25, 684, 961, 997. 53 I 19,441,159

425, 793, 662. 00

9, 945,295

1, 286, 080: 00
7,013,489,335.25

4,020

o

10,698,932

26; 010,755, 659. 53 |, 29,386,454

te
H

3, 023,769,120.00

80, 725

I 12, 731, 974. 50

63,666

3,036,501,094. 50

144,391

3,177, 468,820. 00

1, 242, 810

1, 415, 465. 00

6,074

3,178,884, 285. 00

1, 248,884

1,131,370. 00
6,202,369, 310.00

2,789
1,326,324

154, 710.00

1,247

1,286,080. 00

4,036

14, 302,149. 50

70,987

6,216, 671, 459. 50

>
w

1, 397, 311

» I t e m I does n o t i n c l u d e pieces of T r e a s u r y (war) savings securities, s u c h information being u n a v a i l a b l e w i t h respect t o certain i t e m s .
2 I n c l u d e s accrued d i s c o u n t credited as p u b l i c - d e b t receipts in t h e a m o u n t of $11,957,049.90.
8 R e p r e s e n t s p a r v a l u e of securities r e d e e m e d a t r e d e m p t i o n v a l u e of $61,168,038.68, w h i c h i n c l u d e s r e d e m p t i o n s of series 1918, 1919, a n d 1920 securities in t h e a m o u n t of
$10,297,419.99 charged to " I n t e r e s t " a n d transfer of $533.83 from " P r i n c i p a l " t o " I n t e r e s t " a c c o u n t of sales corrections, series 1918 a n d 1919.
* R e p r e s e n t s p a r v ^ u e of securities issued a t sales prices a m o u n t i n g t o $11,290,154.31.




-3

Summary siatement of transactions in interest-bearing and noninterest-bearing United States securities for the fiscal year ended June 30,
1925—Continued
Bonds, notes, and certificates
of indebtedness

Treasury (war) savings
securities

oc

Total

Transactions
Pieces
IL TransactiODS in .interest-bearing securities and securities which matured
prior to July 1, 1924 (as alTecting the accountability of the Treasury Department and its agents)—Continued.
F. Securities delivered to the Register of the Treasury during the fiscal
year 1925— ..
1. Account redemption—
{aj Interest-bearing securities (see Item II, C-l-a, above)
$3, 745,536, 700.00
(&) Securities matured prior to July 1,1924 (see Item II, C-l-b,
above)
_
21, 296, 970.00
2. Account exchange, conversion, etc., for securities of equal par
value issued—
3,177,468,820.00
(a) Interest-bearing securities (see Item II, C-2-a, above)
3. Account loss or destruction (covered by insurance or bonds of
indemnity)—
1,131, 370.00
(a) Interest-bearing securities (see Item II, C-3-a, above)
4. Unissued securities (excess stock)—
735, 200, 290. 00
(a) By Division of Loans and Currency (see Exhibit 8)
(&) By Federal reserve banks and other Treasury agencies (see
351, 337,400. 00
Exhibit 9)
451, 404, 757. 53
6. Retired pre-war securities not previously reported (see Exl;ibit 10).
6. Total securities delivered to the Register of the Treasury
G. Securities on hand June 30, 1925—
1.- Unissued securities in Division of Loans and Currency (see Exhibit 8)
•
2. Unissued securities in Federal reserve banks and other Treasury
agencies (see Exhibit 9)
:
3. Total securities on hand June 30,1925..
H. Total securities accounted for (Items E-4, F-6, and G-3)




430, 816

Amount

6,485, 300. 25

Pieces

5, 874, 670

Amount

Pieces

$3, 812,022,000. 25

6, 305. 486

21, 296, 970. 00

78, 978

78, 978

3,178,884, 285. 00

o
w

4, 210, 448

o
4, 204, 230

1. 416, 465. 00

6,218

2,773

154, 710. 00

1,247

1,286,080. 00

4,020

519, 792

326, 942, 337. 00

3,911,556

1,062,142, 627. 00

195.182
14, 691

339, 400. 00

1,726

351, 676, 800. 00
451,404, 757. 53

196, 908
14, 591

8, 483, 376,307. 63 J 5, 446, 362

395, 337, 212. 25

9,795,417

8,878, 713, 519. 78

15, 241,779

9,895, 876,330.00. 12, 054, 069

16,116, 755.00

74,467

9,-911, 993,085. 00

12,128, 526

37, 545. 25

4,434

1,003, 377, 595. 25

618,838

10, 899, 216,380.00 i 12, 668, 473 \

16,154, 300. 25

78,891

10,915,370,680.25

12,747,364

25, 584, 961,997. 63 | 19, 441,169 j

425, 793, 662. 00

9, 945, 295

26,010, 755, 659. 53

29, 386,454

M

4, 431, 348

1,003, 340,050.00

614, 404

o

EXHIBIT

4.

(See Exhibit 3, Item I-B)

I N T E R E S T - B E A R I N G UNITED STATES BONDS, NOTES, AND CERTIFICATES OF INDEBTEDNESS ISSUED
T H E FISCAL YEAR E N D E D J U N E 30, 1926, CLASSIFED BY ISSUES AND ACCOUNTS
E x c h a n g e , conversion, etc., against securities of e q u a l par v a l u e retired
Issue

Original
subscription

Exchanges
Denominational

I. Bonds:
A, Pre-war bonds—
1. 2 per c e n t consols of 1930.
2. 4 per cent loan of 1925
3. 2 p e r c e n t P a n a m a C a n a l
loan of 1916-1936
4. 2 p e r c e n t P a n a m a C a n a l
loan of 1918-1938
5. 3 per c e n t P a n a m a C a n a l
loan of 1961
6. 3 per cent conversion
b o n d s of 1946-47
7. 2 H per cent postal savings b o n d s (first t o
twenty-eighth series)..
8. T o t a l pre-war b o n d s
issued
B . L i b e r t y bonds—
1. F i r s t L i b e r t y loan of
1932-1947—
(a) F i r s t 3>^'s
(6) F i r s t 4 ' s (c) F i r s t 4 M ' s _ .
(d) F i r s t 2d 41^'s
2. Second L i b e r t y loan of
1927-1942—
(a) Second 4's
(6) Second 4 K ' s
3. T h i r d L i b e r t y loan of
1928...
4. F o u r t h L i b e r t y loan of
1933-1938
5. T o t a l L i b e r t y b o n d s
issued

Coupon

Registered

Temporary

Interim

Conversion

Mutilations,
etc.i

Transfer

Total

.

Adjudicated
claims
-for
replacement

Total

Pieces

^,
$58,921,250
29,204,660

$88,000
40,200

$59,009,250
29,244,860

$1,000

$59,009,250
29,245,850

7,811
4,142
1,312

6,178,480

6,178,480

3,499,020

3,499,020

831

11,134,100

11,417,500

11,417,500

1,915

286,000

102,120

6,178,440
3,496,860

283,400

$102,120

40
2,160

2, 758,100

3,044,100

3,044,100

429

31,980

'

1 Includes coupon error transactions.




•

DURING

229,540

363, 640

920

364,560

L066

112,756,840

1,920

112,758,760

17.506

103,611,650
783,000
62, 572, 950
401,800

1,050
2, .500
30,250

103,612,700
785, 500
62,603,200
401,800

52,938
4,784
48,913
429

.20. 500
600,050

3,303,100
328,363, 600

17,720
181,515

731,780

111.922,940.....

.$16,600
$12,402,000 50,882,900 $30,875,000
512,000 $217,500
51,950
$1,928,700
39, 729,900 9,467,160 8,983,900
81,460
20,150
243,000
1,650
96, 650

9,418,200
1,550
2,377,500
40,350

S;i6.9.'^)0

2,187, 750
218,450
208,205,450 35,857,500 66,182,960

5,150
9, 768,350

1,000
47,200

3,282, 600
327, 763,550

248,183,900 26,974,650 78,608,300 2,220, 750

10,721, 500

54,600

366,663, 700

179,950

366,843, 660

202,277

380, 799,900 137,803,450 88,272, 550 3,809,650

30,449,350

54,550

641,189,450

266,150

641,455,600

342,383

1, 507,369,150

850,959

870,250
348,700

889,834,550 261,005,800 275, 619,100 7, 549,950

7,353,400

16,600 9,282,100 62,781,950

4,350

i

1

1

178 650 1, 606,268,700 1,100,450

O

Interest-bearing United States bonds, notes, and certificates of indebtedness issued during the fiscal year ended J u n e 30, 1925, classified by
issues and accounts—Continued
E x c h a n g e , conversion, etc., against securities of e q u a l p a r v a l u e retired
Issue

Original
subscription

Exchanges
Denominational

I. Bonds—Continued.
C. Treasury bonds—
1. 4M p e r c e n t T r e a s u r y
b o n d s of 1947-1952
2. 4 p e r cent T r e a s u r y
$1,047,088,500
b o n d s of 1944-1954

Coupon

Registered

Temporary

Interim

Conversion

Mutilations,
etc.i

Total

$2,122,900

2,611,100

$63,858,000

3,667,500

$31,152,800 $20,569,400 $10,012,900
149,378,000 68,758,800

Transfer

1,271, 503,900

Adjudicated
claims
for
replacement

$25, 600

Total

Pieces

$63,883, 500

13,970

1,271, 503, 900

293,673

3. T o t a l T r e a s u r y b o n d s
5,790,400
1, 335,361,900
1,047,088,500 180,530,800 89,328,200 12, 624,000
25, 600 1,335, 387,400 307,643
issued
:.
1,047,190,620 1,070, 365,350 351,065, 780 288,243,100 $7,549,950 $16,600 $9,282,100 180,495,290 $178,650 2,954,387,440 1,127,870 2, 965, 515, 310 1.176,108
D . T o t a l b o n d s issued
11. T r e a s u r y n o t e s :
15,341,100
1. Series B-1924
15,341,100
15,341,100
776
110,098,200
110,098,200
110,098, 200
2. Series A-1925_8,628
2,000
76,422,200
3. Series B-1925
76,422,200
76,420,200
4 020
1,000 124,931,800
6,432
4. Series C-1925__
124, 931,800
124, 930,800
136,104, 500
136,104, 500
5. Series A-1926
136,104,500
7 162
122, 700, 500
6. Series B-1926- _
122, 700,500
6,937
600 122, 701,000
7. Series A-1927
96,238,500
96,238,500
6 526
3,000
96,241,500
143,857,200
8. Series B-1927 _
143,857,200
8,448
143,857,200
50,000,000
50,000,000
9. Adjusted service series, 1930.
50,000,000
3,000 875,694,000
10. T o t a l T r e a s u r y notes i s s u e d .
50,000,000 825,691,000
47,934
3,500 875, 697, 500
I I I . Certificates of i n d e b t e d n e s s :
1. Series T D - 1 9 2 4 . .
20,824,000
20,824,000
1,285
20,824,000
2. Series T M - 1 9 2 5
69,217,500
69,217,500
69,217,500
4,530
3. Series TD2-1924
39,007,500
39,007,500
39,007,500
1,550
4. Series TS-1925
391,369,500 216, 792,500
41, 789
608,162,000
608,162,000
5. Series T D - 1 9 2 5
219,462,000
70,529,500
28,651
289, 991, 500
289,991, 500
6. Series TJ-1926 . . .
124,247,000
28, 207,000
23,944
152,454,000
152,454,000
7. Adjusted service series, 1926.
50,000,000
500
50,000,000
50,000,000
8. Special
1,141,500,000
33
1,141,500,000
1,141,500,000
9. T o t a l certificates of i n d e b t edness issued
1,926,578,500 444,578,000
2, 371,156,500
2,371,156, 500 102,282
I V . T o t a l securities issued d u r i n g
fiscal y e a r 1925
3,023,769,120 2.340, 634,360 351.065, 780 288 243,100 7, 649,950 16,600 9,282,100 180,495,290 181,650 6, 201,237,940 1,131, 370 6,202, 369,310 1,326,324

'

.

.

—
:

»Includes coupon error transactions.




00
O

(See Exhibit 3, Item I - D )

EXHIBITS.

I N T E R E S T - B E A R I N G U N I T E D STATES BONDS, NOTES, AND C E R T I F I C A T E S OF INDEBTEDNESS R E T I R E D D U R I N G
T H E F I S C A L Y E A R E N D E D J U N E 3 0 , 1 9 2 5 , C L A S S I F I E D B Y I S S U E S cAND A C C O U N T S
E x c h a n g e , conversion, etc., against securities of e q u a l p a r v a l u e issued
Redemption

T i t l e of issue

Exchanges
Denominational

Coupon

Registered

Temporary

Interim

w
t=i

o
r. B o n d s :
A . Pre-war bonds—

'

-

117,051,150

B . L i b e r t y bonds—
1. F i r s t L i b e r t y loan of 1932-1947—
(n) First 3V4'«?
(h) Pir«;t 4's
•
(c) F i r s t 4V^'s
(d) F i r s t second 4Vi<'<?
2. Second L i b e r t y loan of 1927-1942—
(a) Second 4's
(b) Second 4l^'s
3 T h i r d L i b e r t y loan of 1928
4 F o u r t h L i b e r t v loan of 1933-1938
5. T o t a l L i b e r t y b o n d s retired

.

"

...

$12,402,000
50,882,900
51,950
9, 467,150
39,729,900 *
243,000
20,150

2,050

_

D . Total bonds retired...




$30,875,000
512,000
8,983,900
96, 650

$217, 600
81, 450
1,660

2,187,750
66,182, 950
78,508,300
88,272,550

870,250
348,700
2,220,750
3,809,650

111, 870,450

889,834, 550

261,005,800

275,619,100

7,549,950

16,600

31,152, 800
149, 378,000

20,569,400
68, 758,800

10,012,900
2,611,100

7,549,950

16,600

180,530,800
^

$16,600

35,857,500
26, 974, 650
137,803,450

3. T o t a l T r e a s u r y b o n d s retired
'

,

218,450
208,205,450
248,183, 900
380, 799, 900

-

C. Treasury bonds—
1 4}/i ner opnt T r e a s u r v b o n d s of 1947-1952
2. 4 per cent T r e a s u r y b o n d s of 1944-1954

o

28,400
111, 822, 600
14, 350

:
. . . .
...

731, 780

3,050

8. T o t a l pre-war b o n d s r e t i r e d . _

I

$88,000
40,200
40
2,160
283,400
^286,000
31,980

$117,051,150
^ 2 DPr ppTit PflTiama C a n a l loan of 1916—19.36
4 2 ner cpnt P a n a m a C a n a l loan of 1918 1938

228,921, 600

89,328,200

12, 624,000

1,070,365,350

351,065, 780

288,243,100

00

Interest-bearing United States bonds, notes, and certificates of indebteaness retired during the fiscal year ended J u n e 30, 1925, classified by
issues and accounts—Continued

00
to

E x c h a n g e , conversion, etc., against securities of e q u a l p a r v a l u e issued
Exchanges

Redjemption

T i t l e of issue

Denominationa
II. Treasury
i- Scries
2' Sprips
3' Series
4' Spjips
5 Series
6- Spries
7- Series
8 Series

notes:
B-1924
\-lQ25
n-1925
0-1925
\-1926
B-1926
A-1927
B-1927

.
..
.

. . . . .
--

.
--

'-

-

Registered

Temporary

Interim

$15,341,100
110,0^8,200
76,420,200
124, OaO, 800
136, i m , 500
122,700, 500
96, 23i8, 500
143,857,200

1, 361, 624,600

O
O

825,691,000

214, 045, 500
399,990,000
193,061,500
161,793, 500
40,000,000

-

20,824, 000
69,217, 500
39, 007, 600
216,792-, 500
70, 529, 500
28,207, 000

W
. ...

...".

...
.

.

.

.

.

.

9. T o t a l certificates of i n d e b t e d n e s s retired-•.
r v . T o t a l securities retired d u r i n g fiscal year 1925




388,967, 900
30,000

..

9 T o t a l T r e a s u r y notes retired
I I I . Certificates of i n d e b t e d n e s s :
1. Series TD-1924 _
2'Series TM-1925
3- Series TD2-1924
4: Series TS-1925
.
5 Series TD-1925
6; Series TJ-1926
..
7' Adjusted'service series 1926
8. Special
... .

.$377, 249,100
595, 377, 600

-.

."

Coupon

-

•.
'

o

4,600, 000
1,141,500,000
2,154,990, 500
3,745. 536, 700

m
444, 578, 000
- 2, 340, 634, 350 $351,065,780

$288,243,100

$7, 549,950

$16,600

E x c h a n g e , conversion, etc., against securities of equal
p a r v a l u e issued
Loss or
destruction

T i t l e of issue
Conversion

I. . B o n d s :
A . Pre-war bonds—
1. 2 per cent consols of 1930
2. 4 per cent loan of 1925
3. 2 per cent P a n a m a C a n a l loan of 1916-1936
4. 2 per cent P a n a m a Canal loan of 1918-1938
5. 3 per cent P a n a m a C a n a l loan of 1961
6. 3 per cent conversion b o n d s of 1946-47...
7. 2]/^ per cent postal savings b o n d s (first t o t w e n t y - e i g h t h series) .

Mutilations,
etc.1'

920

8,022
31,369
1,294
769
7,006
854
1,786

1,920.

229,707,790

61,090

103, 614, 700
2, 711,700
60, 646,300
401,800,

1,050
2, 500
30, 250

103, 615, 760
2, 714, 200
60, 676, 550
401,800

174, 913
14,327
202, 743
1,094

5. T o t a l L i b e r t y b o n d s retired

229, 706,870

$16,960

7,353,400

^..i

5,150
9, 768, 350
10, 721, 500
30, 449, 350

1,.Q00
47,200
54,600
64,'550

10, 636,000
320,438, 550
478, 486,300
641, 203,800

20, 500
600, 050
179, 950
266,150.

10, 656, 500
321, 038, 600
478, 666, 250
641, 469, 950

...

9, 282,100

62, 781, 950

178,^0

1, 618,139,150

1,100, 450

1, 619, 239, 600

3,896,036

63,858, 000
224,415,400

25, 500

63, 883, 500
224, 415,400

40, 539
69,122

4,3.50

2,122,900
3, 667, 500

288, 273,400

5, 790,400

" 3. T o t a l TrcEisury b o n d s retired
.

o

63, 079
733, 656
1, 202,493
1, 513, 731

C. T r e a s u r y bonds—
1. 4K per cent T r e a s u r y b o n d s of 1947-1952
2. 4 per cent T r e a s u r y b o n d s of 1944-1954

.

$1,000

9, 418, 200
1,560
2,377, 600
40, 350

$1,928,700

.

Pieces

$59,009,250
146, 297, 000
6,178,480
3, 499,020
11,417, 500
3, 044,100
262,440

$59,009,250
146, 296, 000
6,178,480
3,499, 020
11, 417,500
3, 044,100
261, 620

111, 922, 940

B . L i b e r t y bonds—
1. F i r s t L i b e r t y loan of 1932-1947—
(a) F i r s t 33^'s
(6) F i r s t 4's
(c) F i r s t 4 ^ ' s . .
(d) F i r s t second 434's
2. Second L i b e r t y loan of 1927-1942—
(a) Second 4's
(6) Second 4 K ' s
. '
.
3. T h i r d L i b e r t y loan of 1928
4. F o u r t h L i b e r t y loan of 1933-1938

Total

Total

$58,921, 250
29, 204, 660
6,178, 440
3,496,860
11,134,100
2, 758,100
229, 540

8. T o t a l pre-war b o n d s retired

D . T o t a l b o n d s retired - -

Transfer

9, 282,100

180,495, 290

178,650

2,136,118,420

25, 500
1,127, 870 -

288, 298,900

109, 661

2,137, 246, 290

4,066, 787

1 Includes coupon error transactions.




OO
CO

Interest-bearing United States bonds, notes, and certificates of indebtedness retired during the fiscal year ended June SO, 1925, classified by
issues and accounts—Continued

00

Exchange, conversion, etc., against securities of equal
par value issued
Loss or
destruction

Title of issue
Conversion
II. Treasury notes:
1. Series B-1924 . _ . . .
• 2. Series A-1925
.
3. Series B-1925-.
4. Series C-1925
6. Series A-1926
6. Series B-1926 . .
7. Series A-1927.
8. Series B-1927 . . .

$2,000
1,000

.'
.

9. Total Treasury notes retired.

'.
..

III. Certificates of indebtedness:
1. Series TD-1924'
2. Series TM-1925
3. Series TD2-1924
.
4. Series TS-1925
'.
5. Series TD-1925
6. Series TJ-1926
7. Adjusted service series 1926
8. Special .

.
..

'...

.

.

.

9. Total certificates of indebtedness retired

1 Includes coupon error transactions.

3,000

_.

IV. Total securities rp.tired during fiscal year 1925




Transfer

Mutilations,
etc. 1

_
^^.^

$392,590,200
705,475,800
76,422, 200
513,899, 700
136,134, 600
122,700,500
96,238, 500
143,857,200
2,187,318, 600

$500
3,000

181, 650

6, 923,005, 620

$392, 590, 200
705,475, 800
76,422, 200
613,899, 700
136,134, 500
122, 701, 000
96, 241, 500
143,857, 200

86,690
103,946
15,837
140, 610
28,993
18,807
18, 648
38, 068

2,187,322,100

451, 599
28,627
45, 962
15, 560
26, 593
9,372
3,240
46
33

2. 599, 568, 500

2, 599,568, 500
$9, 282,100 $180, 495, 290

Pieces

234,869, 500
469, 207, 500
232,069, 000
378, 586, 000
110, 529, 500
28, 207, 000
4, 600, 000
1,141,500, 000

3,500

234,869, 500
469,207, 500
232,069,000
378, 586, 000
110, 529, 500
28, 207, 000
4, 600,000
1,141,500, pop

.
.

Total

Total

1,131,370

129, 433

6, 924,136, 890

4, 637,819

O
Q

W

>
M
o

EXHIBIT

6.

(See Exhibit 3, Item I-E)

U N I T E D STATES BONDS, NOTES, AND C E R T I F I C A T E S OF INDEBTEDNESS O U T S T A N D I N G J U N E 30, 1925, W H I C H
M A T U R E D D U R I N G THE FISCAL YEAR 1925, CLASSIFIED B Y ISSUES AND DENOMINATIONS
Issue

$50

I. P r e - w a r b o n d s :
1 4 per c e n t loan of 1925—
(a) C o u p o n
(&) Registered
.
2. T o t a l pre-war b o n d s . . . .
II

•
_

$10,000

$100,000

Total

Pieces

$28, 000
36, 000

$433, 000
177, 000

. $165,000

$580.000

$472, 800
965,950

631
425

CO

. .

2,950

16, 800

64, 000

610, 000

165, 000

580, 000

1,438, 750

1,056

o

9,500
45, 300
1,139,100

44,500
192, 000
2, 299, 000

173, 000
721, 000
7, 765, 000

186, 000
530, 000
2,430, 000

20, 000
360, 000
3, 030, 000

$100, 000
400, 000

432, 000
1, 948, 300
17, 063,100

396
1,701
24, 547

1,193,900

...

2, 535, 500

8, 659, 000

3,145, 000

3, 410, 000

500, 000

19, 443, 400

26, 644

11, 500
42, 000

62, 000
4,000
142, 000

30,000

.

45, 000

80, 000

103, 600
4,000
309, 000

."".......

53, 500

208, 000

75, 000

. 80, 000

416, 500

338

2, 653, 000

9, 477, 000

3, 385, 000

4, 070, 000

21, 298, 650

o

91
4
243

28, 038

._
_

[V. T o t a l securities o u t s t a n d i n g J u n e 30, 1925, w h i c h m a t u r e d
d u r i n g t h e fiscal year 1925




$5,000

$9,400
7,400

4. T o t a l T r e a s u r y notes

4. T o t a l certificates of i n d e b t e d n e s s

$1,000

$2, 400
550

Treasury notes:
1. Series B-1924
2. Series A-1925
3. Series C-1925-

I I I . Certificates of i n d e b t e d n e s s :
1. Series TD-1924
2. Series TD2-1924
3. Series T M - 1 9 2 5

$500

.

.
. . .

$100

2.950

1, 210, 700

500, 000

oo

ExHiBit 7.
INTEREST-BEARING

I. Bonds:
A. P r e - w a r b o n d s —
1. 2 per cent consols of
1930—
(a) C o u p o n
(6) Registered
2. 2 per cent P a n a m a Canal loan, 1916-1936—
(.i) C o u p o n
$860
(b) Reeistered
4,220
3. 2 per cent P a n a m a Canal loan, 1918-1938—
(a) C o u p o n
80
(b) Registered
1,620
4. 3 per cent P a n a m a Canal loan, 1961—
(a) C o u p o n
(6) Registered
5. 3 per cent conversion
b o n d s of 1946-47—
(a) C o u n o n
(6) Registered
6. 23^ per cent postal savings b o n d s (first to
t w e n t y - e i g h t h series)—
(a) C o u p o n
18,080
101,180
(6) Registered
(c) I n t e r i m certificatas
7. T o t a l pre-war
outstanding




00

UNITED STATES BONDS, NOTES, AND CERTIFICATES OF INDEBTEDNESS
J U N E 30, 1925, CLASSIFIED B Y ISSUES AND D E N O M I N A T I O N S
$20

Issue

(See Exhibit 3, Item I-F)

$50

$100

$3, 500
104,060 >

$24, 500
674,000

$500.

$69,000
2, 612,000

$1,000

$467,000
24,630,000

100
158, 000

321*, 500
354, 500

$100,000

Various

Total

Pieces

$564,000
599,160, 050

920
93,826

960
48,953,220

44
12,035

23,030,000

1,180
25,946,220

6
5,943

32, 240,000

5,056,000
11, 720,000
17,332,000
296,000

25,100
6,400

$50,000

42,830,000

1,000
2, 843,000

47,000
61,000

$10,000

5, 424, 500
44, 375, 500

6,169
16, 263

17, 357,100
11, 537,400

17, 583
1, 509

$62, 670,000 $418,070,000 $90, 500,000

5,961,000

100
71, 600

$5,000

OUTSTANDING

255,000

10,980,000

.

268,180
3,879,180

2,245
23,851

7,858, 520

11,752

7,858,520

765, 316,010

192,146

132, 500
2,373, 600

bonds
126,040

107, 560

2, 479,900

5, 863, 000

68, 306, 000

62,925, 000

527,150, 000 90, 500, 000

n
o
H

w

o

$7, 858, 520

107, 600
1,404, 600

o

B . L i b e r t y bonds—
1. F i r s t L i b e r t y loan of
1932-1947—
(a) F i r s t 33/2's—
1. Coupon 1..
2. Registered.
(&) F i r s t 4's—
1. C o u p o n
2. Registered,
(c) F i r s t 4K's—
1. C o u p o n . . .
2. R e g i s t e r e d .
{d) F i r s t s e c o n d
4M's1. C o u p o n
2. R e g i s t e r e d .
2. Second L i b e r t v loan of
1927-1942—
(a) Second 4's—
1. C o u p o n
2. R e g i s t e r e d .
(6) Second 4K's—
1. C o u p o n . . . .
2. R e g i s t e r e d .
3. T h i r d L i b e r t y loan of
1928—
(a) C o u p o n
(b) Registered
4. F o u r t h L i b e r t y loan of
1933-1938—
(a) C o u p o n
(6) R e g i s t e r e d - 1 . . .
5. T o t a l L i b e r t y bonds
outstanding
T r e a s u r y bond.s—
1. 4J.i per cent b o n d s
of 1947-1952—
(a) C o u p o n
(6) Registered .
. 2. 4 per cent b o n d s of
1944-1954—
(a) C o u p o n
(b) Registered.
3. T o t a l
Treasury
bonds outstanding.:

16, 302,960 20, 848, 600
2, 003,400

33. 332, 000
2, 257, 000

923, 566, 000
13, 716, 000

15, 000
19,485, 000

422,900
1,180, 200

167, 600
881, 500

317, 000
1, 209, 000

10, 000
230, 000

10,000
150,000

50, 000

364,100 41, 348, 500
236, 700 8, 535, 400

44,938,000
14,916, 500

38, 600, 000
17,145,000

105, 090, 000
25, 430,000

9, 050, 000

28,900, 000

50, 000

200,000

608, 800
116, 450

136, 892,000
342, OOOj

95, 800
17, 750

154,300
74, 300

211, 000
98, 000

. 255,000
291, 000

140, 000
185,000

550,000
170,000

2, 247,100
1,102,900!

1, 793, 000
3,372,100

792,000
2, 723, 500

972,000
204,000

225,000
1.180,000

450.000
830,000

917, 550 137,381, 800
884, 500 25, 329, 300

159,450, 000
45, 415,000

724, 074, 000
135, 630,000

250,165, 000 1,127,420,000
64, 810,000 111.540,000 41,150,000

104, 700 203, 017. 500
620, 450 49.096, 700

188, 491, 500
69, 202, 500

647, 288,000
163, 846,000

182,180, 000
54, 630, 000

994,074, 550 1,524, 779
415,921, 400
65,955
1,426, 200
3,817, 150

15,040
17,165

388, 232, 600 1,085, 764
185, 705
144, 555, 600
2,406,100
1,086,050

5,219
1,642

7,479,100
13,612, 600

66, 518.
65, 753

CO
Q

.|141, 275. 300 278. 952,000
- 14, 753, 900 75, 005, 000

290, 619, 500 1, 282, 206, 000
106,211,500 313, 028, 000

200,000

941, 270,000
82, 230, 000 26, 600,000

482, 775, 000 2,222,030,000-.
135, 255, 000 253, 870, 000 101, 500,000

184,300,000

2,470,408,350 4,017,918
604, 225
613,058,800

142, 800,000

2, 286, 351, 700 5, 667,103
599,025, 650 1, 026, 736

627, 000,000

4, 697, 857,800 7, 797, 229
1, 626, 623, 400 1, 631, 317

410,548,950 848,515,000 951. 617 , 00 0 4, 388, 836, 000 1, 247, 030, 000 4,97.3, 660, 000 256, 050,000 1,181. 600, 000

O

W

14, 265, 936,950 23, 768, 068 •

d
343,020,000
31,700,000 16,200,000

700,000
134,200,000

546. 874, 300
217,074,000

238, 061
42,179

131,670,000
6, 600,000

668, 950,000
16,670,000

158,300,000
51,900,000

955,966, 500
91,122, 000

207,751
16,800

218,600,000

960,340,000 22,450,000

1,811,036, 800

504,791

4, 568, 800
987,000

12, 942, 500
3, 386,000

118, 813, 000
18, 001, 000

66, &30,000
13.600,000

1, 862, 500
347, 500

9,130, 000
1,239,500

86, 054, 000
7, 215. 000

26, 698,000

230,083,000

7, 765, 800

D . T o t a l b o n d s o u t s t a n d i n g 126,0^10|410, 656, 500 858, 760, 700

7, 260,000

345,100,000

992, 258, OOOU, 687, 225,000 1, 528, 555,000 6,461,160,000 369.000,000 1, 626, 700,000

1 I n c l u d e s full-paid i n t e r i m certificates n o t exchanged for 3 H per cent b o n d s .




10, 000
102, 610,000 77,450, 000 $198,100, 000

7, 868, 520 16,842, 289,760 24,465,005
00

Interest-bearing United States bonds, notes, and certificates of indebtedness outstanding June 30, 1925, classified by issues and denominationsContinued
$20

Issue
II. Treasury notes:
1. Coupon—
(a) Series B-1925
' (5) Series A-1926.
(c) Series B-1926
(d) Series A-1927__.
(e) Series B-1927
2. Registered—
. (a) Adjusted service,
series 1930
3. Total Treasury
outstanding

$60

$100

$1,920,900
2,689,400
1,131,800
2.638,400
11,204,400

$600

$1,000

$4, 557,000 $23,382,000
6,156, 500 52,082,000
4,917,500 29,933,000
9,062,500 3S, 179, O C
O
29,466,000 115,361,000

$5,000

$10,000

$14,130,000
36, 510,000
34,430,000
30,950,000
64, 550,000

$63,870,000
146,340,000
114, 510, 000
105, 750,000
171, 620, 000

$60,000

$100,000

Various

$191.800,000
371,900.000
230.000,000
169.200,000
276,000,000

Total

$299, 659, 900
616, 677, 900
414,922,300
355,779, 900
668,201,400

00
00

Pieces

62,836
116 944
71, 723
101 145
319,169

50,000, 000

5

1, 238,900,000 50, 000,000 2,404, 241,400

671,822

$50,000,000

" "
1

notes
. .

19. 584, 900

64,169, 500 258,937,000

180,670,000

602,090, 000

4,921,000
6,907,000
10.772,000

10,260,000
12,890,000
14,645, 000

60, 580,000
62,890,000
44,940,000

o

III. Certificates of indebtedness:
I. Coupon—
(a) Series TS-1925
(6) Series TD-1925...
(c) Series TJ-1926
2. Registered—
Ca) Adjusted service,
series 1926

315,000
. 1,275,000
990,000

153, 500,000
95, 500,000
62,900,000

2,580,000

,.,_

22, 600,000

37, 795,000

168,410,000

229, 576,000
179,462,000
124, 247,000

15,196
19, 279
20,704

45,400,000

3. Total certificates of indebtedness outstanding

45,400,000

454

301,900,000 45,400,000

578, 685,000

55,633

IV. Total interest-bearing securities outstanding June 30,1925 $126,040 $410,656,600 878, 346, 600 1,048,997, 500 4,968,762,000 1,746,920, 000 7,231, 650,000 $369,000,000 3,067,500,000 103,258, 520 19,825, 216,160 25,192,460




o
w

W

O

EXHIBIT 8
STOCK ACCOUNTABILITY

O F T H E DIVISION O F LOANS AND CURRENCY F O R UNITED STATES AND OTHER
SECURITIES F O R T H E FISCAL YEAR 1 9 2 5
O n h a n d J u n e 30, 1924
Interest
rate

Class of s e c u r i t y

Pieces '^
I . Pre-war b o n d s :
Consols of 1930
L o a n of 1925
._
P a n a m a C a n a l loan of 1916-1936
P a n a m a C a n a l loan of 1918-1938
P a n a m a C a n a l loan of 1961
Conversion b o n d s of 1946-47
Postal savings b o n d s . _
Total

.

P e r cent
2
4
2
2
3
3
2>^

Pieces

. . .

.

Pieces

Amount

T o t a l t o a c c o u n t for

Pieces

Amount

$113,490, 500
30, 601, 900
• 15, 603,120
' 27,502, 640
34, 849, 600
63, 073, 800
11, 454, 620

806

2 432, 600

10, 856

58, 932, 600

211, 811

500

50, 000, 000

936, 282, 300
465, 218, 900
1, 063, 715, 300
37, 492, 400
1, 469, 713. 650
1, 317, 099, 650
1, 632, 925, 850
1, 961,106, 200

k

Total
4M
4

Total

o

296, 676, 080

237, 643,480

1,166,133
671, 657
670, 962
49,270
1, 575, 627
892, 965
3, 230, 315
3,146, 256

886, 282, 300
466, 023, 900
1, 024, 223, 700
37, 486, 400
1, 459, 713, 660
1, 039, 282, 660
1, 230, 775, 850
1, 447,175, 200

2,000

10,050

$58,500, 000

•

20, 000, 000

660
10,001
6

$195, 000
9, 491, G O
O
6,000

38, 900
40, 000
84,133

276,140, 005
400, 000, 000
601, 830, 000

5, 954
4,110
4,200

1, 677, 000
2,160, 000
2,100, 000

1,156, 633
672, 207
682, 963
49, 276
1, 676, 627
937, 819
3, 274, 425
3, 234, 588

7, 689, 963, 550

165, 533

1, 247. 970, 000

24, 921

15, 619, 600

11, 583, 638

.220, 477

291, 665, 200

4,500
590, 000

180, 000, 000
1, 847, 600, 000

750
74, 000

5, 000, 000
46, 700, 000

225, 727
664, 000

594, 500

2, 027, 500, 000

74, 750

-: 51,700,000

889,727

W

476, 665, 200
1, 894, 200, 000

291, 566, 200

o

8, 853, 663,150

220, 477

3H
4

_

Amount

U n i s s u e d received for
restoration t o stock

16,308
14, 021
4,438
6,816
67,337
31, 067
71, 824

$54, 990, 600
30, 601,900
15, 603,120
27, 602, 640
34,849, 600
63, 073,800
11, 021,920

11, 393, 084

_

6,268
14, 021
4,438
6,816
67,337
31, 067
1 71, 018
200,956

_.

II. Liberty bonds:
F i r s t loan of 1932-1947
F i r s t loan of 1932-1947
F i r s t loan of 1932-1947
F i r s t second loan of 1932-1947
Second loan of 1927-1942
Second loan of 1927-1942
T h i r d loan of 1928
F o u r t h loan of 1933-1938

III. Treasury bonds:
T r e a s u r y b o n d s of 1947-1952
T r e a s u r y b o n d s of 1944-1964

Amount

Received from B u r e a u of
Engraving and Printing

2,370, 765, 200

—
1 Includes 1,874 blank interim certificates not previously reported.
2 Includes $248,160 representing issue valuation of 630 interim certificatesissued in this fiscal year which were originally received from the Bureau of Engraving and Printing in
blank form.
'




00
CO

Stock accountability of the Division of Loans and Currency for Uiiited States and other securities for the fiscal year 1925—Continued
O
On h a n d J u n e 30, 1924
Interest
rate

Class of security

Pieces
IV. T r e a s u r y notes:
Series A-1924
Series B-1924
Series A-1925
Series B-1925
Series C-1925
Series A-1926 Series B-1925
Series A-1927
Series B-1927
. . .
Adjusted service series 1930

...
:

. . .

Pieces

Pieces

Amount

.
..

Amount '

$222, 908,800
92, 973, 800
181, 617, 200
103, 765,100
174, 061, 200
381, 660, 300
102, 627, 000
342,190, 400
213, 051, 800
1,874,745,600

5,673
40, 506
7, 048

90,360, 000
76, 268, 000
20, 461, 600

5K

900
600
600

209, 469
78, 065
180, 219
93, 468
79, 013
86, 233
37, 321
141,183
67,372
500

3,500

125, 000, 000

2,000
500

200, 000,000
3 50, 000, 000

8,000

575, 000, opo

1,000
1,900
59, 000
43, 500
50, 000
1,500

100, 000, 000
50, 250,-000
760, 600, 000
415, 000, 000
329,500,000
4 50, 000, 000
61,141, 500,000

650
1,150

•

$222, 908, 800
92, 973. 800
271,617 200
213, 766,100
234,061 200
381, 660, 300
227, 627, 000
342,190, 400
413,051,800
50, 000, 000

972,833

$90, 000,000
60, 000, 000
60, 000, G O
O

2, 449, 745, 600

6,673
41, 506
8,948
59, 660
44, 650
60, 000
1,500
649

90,350, 000
176, 268, 000
70, 701, 500
761, 500, 000
422, 000, 000
329, 500, 000
60, 000, 000
1,141, 500, 000

212, 476

3,041,819,500

o
o
H

V. Certificates of i n d e b t e d n e s s :
Series TD-1924
.
Series T M - 1 9 2 5
Series TD2-1924
Series TS-1925
Series T D-1926
Series TJ-1926
_ .
Adjusted service series 1926..
Specials
. .

...

4M
4
23^

2M
...

3
3
4

5 649

$1, 000, 000
7, 000, 000

53, 876

. -

V I . T o t a l p u b l i c d e b t b o n d s , notes, a n d certificates of indebtedness
-




Amount

T o t a l to account for

•

209, 469
78, 065
4M • 179,319
92, 958
4H
4/2 - • 78,413
86, 233
33, 821
4K
141,183
4H
65,372
4^
4
964, 833

V I I . T r e a s u r y (war) savings securities:
Thrift s t a m p s
T r e a s u r y savings s t a m p s
W a r savings s t a m p s , 1918.
W a r savings s t a m p s , 1919.W a r savings s t a m p s , 1920
W a r savings s t a m p s , 1 9 2 1 . . .
T r e a s u r y savings certificates, 1918
T r e a s u r y savings certificates, 1919
T r e a s u r y savings certificates, 1920
T r e a s u r y savings certificates, 1921

Pieces

U n i s s u e d received for
restoration to stock

P e r cent

Total

Total

Amount

Received from B u r e a u of
Engraving and Printing

..

187, 069, 500

156, 900

2, 846,750, 000

1,700

8, 000, 000

12,833,225

10,180,987,330

935,789

6, 766,152, 600

101,371

75, 319, 600

106, 861
45, 990
48, 758
77,056
140,133
182,283
10, 563
159,169

534,305
229,950
243, 790
385,280
14,013,300
33,390, 600
2,648,400
26,900, 625

2
21

2
105

__
_\. .
_
._

2 i

in

13, 870,385 17,012,459,630

2
106,882
45,990
. 48, 768
77,068
140,133
182, 283
10, 563
169,159

2
534, 410
229, 950
243, 790
385, 290
14,013,300
33,390, 600
2,648,400
26,900,625

W

>
o

Treasury
Treasury
Treasury
Treasury

savings
savings
savings
savings

certificates,
certificates,
certificates,
certificates,

Total

.

1921,. D e c . 15, 1921
1922, D e c . 15,1921
1922, Oct. 30, 1922
1923, D e c . 1, 1923

I
/

/
1

19, 957

7,033, 750

19,957

7,033, 750

1,930,387

102,290, 500

1,930,387

102,290,500

535, 017

44,439,676

751,853

115,073,160

1, 286,870

159,512,825

3, 256,164

232,110,175

751,878

115,073,267

4, 008,042

347,183,442

16, 089, 389

10, 413,097,505

935, 789

6, 756,152, 600

863,249

190,392,867

40,123
27,160

119, 771,000
73,107,000

2,650
7,850

5, 350,000
14,850,000

67, 273

192,878,000

10,600

20,200,000

1,955

6, 047, 750

16,158, 617

j(.

_

10, 612, 023,255

.....

V I I I . T o t a l all p u b l i c d e b t securities
I X . I n s u l a r loan s e c u r i t i e s Philippine Islands.
P o r t o Rico
Total

..:

X . D i s t r i c t of C o l u m b i a funded loan of 1924

_.
_..'.

3. 66

X L G r a n d total—Ail securities

Issued t o p u b l i c
Class of s e c u r i t y

Interest
rate
Pieces

I . Pre-war b o n d s :
Per cent
2
Consols of 1930
L o a n of 1925
....
4
P a n a m a C a n a l loan of 1916-1936...
2
P a n a m a C a n a l loan of 1918-1938...
2
P a n a m a C a n a l loan of 1961
3
Conversion b o n d s of 1946-1947
3
Postal savings b o n d s
2K2
Total

•

Amount

Issued as stock t o Federal reserve b a n k s
a n d other T r e a s u r y
agencies
Pieces

Amount

42,773
36, 000

6, 776,352, 600

U n i s s u e d delivered t o
register for destruction

Pieces

A mount

3
8
2

7,811
4,142
- 1,312
831
1,916
429
1,066

$59, 009,250
29,245,860
.6,178,480
3, 499, 020
11,417, 500
3,044,100
364,560

4

17, 506

112, 758, 760

17

853, 249

On h a n d J u n e 30, 1926

Pieces

Amount

213, 078, 000

1,965
190,392, 867

125,121,000
87, 957,000

77, 773
•

946,289

17,878, 427 17,369, 642, 972

6,047, 750

Q

17,958,166 17, 678, 768, 722

i

T o t a l a c c o u n t e d for

O

Pieces

Amount

240

8,494
9,871
3,124
5,985
65,422
30, 638
70, 764

$64,478, 750
1,344, 550
9,424,440
24,003, 620
23, 432,100
60,029, 700
11, 089, 720

16,308
14,021
4,438
6,816
67, 337
31,067
71,824

$113, 490, 500
30, 601, 900
15, 603,120
27, 602, 640
34,849,600
63, 073,800
11, 454, 520

14,440'

194,288

• 183,802,880

211,.811

U2

W

296, 576,080

$2,500
11,500
200

w

3 Represents issue valuation of five notes issued in this fiscal year which were originally received from the Bureau of Engraving and Printing in blank form.
1 Represents issue valuation of 600 certificates issued in this fiscal year which were originally received from the Bureau of Engraving and Printing in blank form.
5 Represents blank certificates not previously reported.
6 Represents issue valuation of 33 certificates issued in this fiscal year which were originally received from the Bureau of Engraving and Printing in blank form.




CD

Stock accountability of the Division of Loans and Currency for United States and other securities for the fiscal year 1925—Continued

CO

to
Issued to p u b l i c
Interest
rate

Class of s e c u r i t y

Amount

Pieces

3H

Amount

Amount.

Pieces

T o t a l a c c o u n t e d for

. On h a n d J u n e 30, 1925

Amount

Pieces

Amount

Pieces

1,106,647
670,751
645,635
48, 771
1, 566, 602
790,994
3,112,181
2, 933,820

$833,193, 200
464, 982, 550
1,004,803, 700
36, 969, 950
1,457, 761, 600
1, 003, 384,400
1, 275, 384, 450
1, 317, 000, 900

1,166,633
672,207
682,963
49,276
1, 575, 627
937,819
3,274,425
3, 234, 588

$936,282,300
465,218,900
1,053,715, 300
37,492,400
1,459, 713, 550
1,317,099, 650
1 632,925,850
1,951,105, 200

4J€

7, 393, 480, 750 11, 583, 638

8,853, 663,150

III. Treasury bonds:
T r e a s u r y b o n d s of 1947-1952
T r e a s u r y b o n d s of 1944-1954

4K

_

IV. Treasury notes:
Series A-1924
Series B-1924.
Series A-1925
Series B-1925 .
Series C-1925
Series A-1926
Series B-1926
Series A-1927.
Series B-1927
A d j u s t e d service series 1930

...

4H
4M
4M
4M
4

Total
V . Certificates of i n d e b t e d n e s s :
Series TD-1924
Series T M - 1 9 2 5
Series TD2-1924
Series T S - 1 9 2 5 . . .

$38, 542,000
124,000
34, 670, 750
460,150
1,297,250
258,364, 360
310, 501, 000
452, 903,050

45

$627,050

94
1
1,001
704
239
487

194, 500
1,000
60,050
397, 350
245,900
1, 263,400

360,440, 600

462,887 1,096,852, 550

2,571

2, 779,250 10,874,401

4,335
17, 766

23,854, 500
98,481,400

5,771
41, 918, 300
386,499 1,329, 262,800

43
22

709, 700
297,600

215, 678
259, 714

410,082, 700
466,158,200

225,727
476, 566,200
664, OOP • 1,894,200,000

122,336, 900

392,270 1,371,181,100

65

1,007,300

475,292

876, 240,900

889,727

2,370, 765, 200

10
14
18
14
7
36
71
5

100, 000
5,000
12,100
16, 000
60,500
610, 000
57, 000
50,000, 000

209,469
77,605
177,066

222, 908,800
84, 773,800
188, 717, 200

209,469
78,065
180,219
93,458
79,013
86,233
37,321
141,183
67,372
500

222,908,800
92, 973, 800
271,517,200
213 755 100
234,061, 200
381, 660, 300
227, 627, 000
342,190, 400
413,051, 800
50, 000, 000

50,860, 600

972,833

2,449, 745, 600

5

6,000

5,673
41,606
8,948
59,660

90,360, 000
176, 268,000
70, 701, 500
761, 500,000

5M
5H
4^

_ ...

42,280
960
24,322
443
6,735
96,987
107,031
184,129

175

4

$63,920,050
112,360
14,046,360
61,300
604, 650
64,963,550
46,794, 500
179,937,850

22,100

4M

7,661
496
12,912
61
2,289
49,134
54,974
116,162
243, 679

4

Total.




Pieces

U n i s s u e d delivered t o
Register for destruction

Per cent

II. Liberty bonds:
F i r s t loan of 1932-1947
F i r s t loan of 1932-1947
F i r s t loan of 1932-1947
F i r s t second loan of 1932-1947
Second loan of 1927-1942
Second loan of 1927-1942
T h i r d loan of 1928
F o u r t h loan of 1933-1938

Total

Issued as stock t o Federal reserve b a n k s
a n d other T r e a s u r y
agencies

4M
4

2%

460
3,143
2,001
4,862
5,200
4,680
3,551
4,957

8, 200,000
82, 700, 000
72,840,000
121, 500,000
127, 975,000
121,000,000
91,530,400
125, 905,000

28,854
100
1,774
1,265
53,519

1

10, 000

751, 650,400

464,141

496, 409,800

10,000,000
56, 600,000
35,825,000 •
665,861,600

6,673
39, 727
7,683
1

91,443
74,133
81,018
32, 634
137, 596
62,344
495

140, 910,100
112, 549,100
253, 659, 300
106, 566, 500
250,050,000
287,089,800

479, 663

1,150,824,800

80, 360, 000
119, 663, 000
34, 876, 500
100, {K.<^

,
6,030

95, 538, 505

o
o
K

o
t=l
Ui

Series TD-1925
Series TJ-1926 . .
A d j u s t e d service series 1926
Specials

_

3
3
4

V I I . T r e a s u r y (war) savings securities:
Thrift stamps
• T r e a s u r y savings s t a m p s
W a r savings s t a m p s , 1918
W a r savings s t a m p s , 1919
W a r savings s t a m p s , 1920
W a r savings s t a m p s , 1921
Treasm-y savings certificates, 1918
T r e a s u r y savings certificates, 1919
T r e a s u r y savings certificates, 1920
T r e a s u r y savings certificates, 1921
T r e a s u r y savings certificates, 1921,
D e c . 15,1921
T r e a s u r y savings certificates, 1922,
D e c . 15, 1921
T r e a s u r y savings certificates, 1922,
Oct. 30, 1922
__T r e a s u r y savings certificates, 1923,
Oct. 30, 1922
T r e a s u r y savings certificates, 1923,
D e c . 1,1923
T r e a s u r y savings certificates, 1924,
D e c . 1,1923...
_

14
128,493 1,323, 598,000

52,998.
519,792

234, 989, 500

73,881,000 T f :44,650 1X422,000.000
* 50,000
122,107, 500
1329? 500,000
i . 1, 500
1 60,000,000
'
649 1,141, 500 000

30,425

291,527,000

735, 200,290 12,054, 069

212,476

3,041,819,500

^

9,895,876,330 13,870,385 17,012,469,530

2
534,410
229,950
241,400
350,000
14,013, 300
33, 390,600
2,400,000
26,412,500

6,941

34,706

922
8,563

244,300
1,466, 650

2
106,882
45,990
48,758
77,058
140,133
182,283
10,663
159,159

2,390
585

41
196

4,100
21,475

2
106,882
45,990
48,280
70,000
140,133
182,283
9,600
160,400

1,668

407,925

2

125

18,287

6, 625,700

19,957

2,645

469, 350

1,912,984

99,245,050

14,758

2,586,100

1,930,387

159, 512,825
347,183,442

2
534,410
229,950
243,790
385,290
14, 013,300
33, 390,600
2,648,400
• 26, 900,625

a

s

i

O

H

w

2,176

674,350

7, 321

1, 670,175

14, 708

2, 564,175
1, 246, 000

. 14,708

161,125,000

24,986

6,159,300

1,286,870

2,564,175 3, 911,556

326,942,337

74,457

16,116, 756

4,008, 042

291,341 1,839, 671, 036 1,027,212 4, 645, 836,225 4,431,348 1, 062,142,627 12,128, 526

V I I I . T o t a l aU p u b l i c d e b t securities
I X . I n s u l a r loan securities:
P h i l i p p i n e Islands
P o r t o Rico

6, 634,000
7,366,000

1,510

2, 394,000

38,120
27,390

118, 687, 000
78,198, 000

42, 773
35, 000

125,121,000
87,957,000

10,753
3.65

I

9,911, 993,085 17,878,427 17, 359, 642,972

4,653
6,100

Total




^ 5,138
17,655
1,000
602

347,919,000
207,392,500

478
117

Total

X I . G r a n d total—all securities

39,490
32,345

284,020. 1,838,100, 860 1,012,604 4,543,282,060

VI. Total public debt bonds, notes, and
certificates of i n d e b t e d n e s s

X . D i s t r i c t of C o l u m b i a f u n d e d loan of
1924

200,000

560 1,191,705,000

Total .

CD

22

60,000,000
600
33 1,141,500,000

13,899,000

1,510

2,394,000

65,510

196, 786,000

77,773

213, 078, 000

5

25, 000

1,950

6,022,750

1,956

6, 047, 750

302,099 1,863,695,036 1,027,212 4,545,836,225 4,434,808 1, 070,659,377 12,194,036 10,108,778, 086 17,958,155 17, 578,768,722

CO
CO

EXHIBIT 9

CO

STOCK ACCOUNTABILITY O F FEDERAL RESERVE BANKS AND OTHER TREASURY AGENCIES F O R UNITED
STATES SECURITIES FOR THE FISCAL YEAR 1925
O n h a n d J u n e 30,1924
Interest
rate

Class of s e c u r i t y

Pieces
I. Liberty bonds:
F i r s t loan, 1932-1947
F i r s t loan, 1932-1947
F i r s t loan, 1932-1947
.
F i r s t second loan, 1932-1947
Second loan, 1927-1942 . .
Second loan, 1927-1942
T h i r d loan, 1928
F o u r t h loan, 1933-1938

ti

II. Treasury bonds:
T r e a s u r y b o n d s , 1947-1952
T r e a s u r y b o n d s , 1944-1954

-

.

4M
4

TotaL...

TotaL




Pieces

Amount

T o t a l t o a c c o u n t for

Pieces

Amount

Issued to public

Pieces

Amount

$39,692,650. 00
673,150. 00
48,656,850. 00
340, 500. 00
2,698, 450. 00
273,400, 050. 00
320,049,150. 00
461,517,750. 00

... .

5H
4M

>

_

ti
•ti
4H
4M

23,196
44,319
121,636
2,733
40,811
133,379
168, 509
123,433

$10,341, 650. 00
14, 508,900.00
100, 253,900. 00
704,250.00
18,399, 650. 00
101, 502,900. 00
115, 341, 050. 00
108,913,050. 00

42, 280
960
24,322
443
6,735
96, 987
107, 031
184,129

$38,542,000. 00
124,000. 00
34,670, 750. 00
460,150. 00
1, 297, 250. 00
258,354, 350. 00
310,501,000. 00
452,903, 050. 00

66,476
45,279
145,958
3,176
47, 646
230, 366
275, 540
307, 562

$48,883, 650. 00
14, 632,900. 00
134,924,660. 00
1,164,400. 00
19,696,800. 00
359,857, 260. 00
425,842,050. 00
661,816,100. 00

658,016

469,965,150. 00

462, 887

1,096,852,550.00

1,120,903

1, 566,817,700. 00

607, 280 1,146,928, 560. 00

33, 386

69,939,400. 00

5,771
386, 499

41,918,300. 00
1,329, 262,800. 00

39,157
386, 499

111,857,700.00
1,329, 252,800. 00

9,635
40,029,000. 00
275, 908 1,173, 022, 500. 00

33, 386

4
4M
4M
4
4M

. . .

Total

I I I . T r e a s u r y notes:
Series B-1924
Series A - 1 9 2 5 . . .
Series B-1925
Series C-1925
Series A-1926
Series B-1926
Series A-1927
Series B-1927Various (specimens)

Amount

Stock received from L o a n s
and Currency

69,939,400.00

392, 270

1,371,181,100. 00

425, 656

1,441,120,500. 00

285, 643 1,213,051, 600. 00

45, 277
4,288
36, 001
368
15, 431
132, 381
147, 303
226, 231

21, 280
29, 980
31,159
24.170
21, 636
24,931
24,002
29, 919
9

54,895,100. 00
71, 656,400. 00
83,848, 200. 00
59, 795,600. 00
54, 531,400. 00
58,655,400. 00
64, 237,000. 00
78,141,300. 00
346,600.00

460
3,143
2,001
4,862
5,200
4,680
3,551
4, 957

8, 200,000. 00
82, 700,000. 00
72,840, 000. 00
121, 500,000. 00
127,975, 000. 00
121,000,000. 00
91,630, 400. 00
125,906,000. 00

21, 740
33,123
33,160
29, 032
26,836
29, 611
27, 553
34,876
9

63,095,100. 00
154, 256,400. 00
156, 688,200. 00
181, 296,600. 00
182, 506,400. 00
179,655,400. 00
155,767,400. 00
204, 046,300. 00
345,500. 00

776
8,618
4,006
6,414
7,148
6,930
6,490
8,377

15,341,100. 00
109,998, 200. 00
76,417,200. 00
124,919,700.00
136 088, 500. 00
122, 640, 500. 00
95,631, 500. 00
143 800, 200. 00

207, 086

526, 005,900. 00

28,854

751,650, 400. 00

235, 940

1, 277, 656,300. 00

47, 759

824,836,900. 00

o
o

>^
>
Q
Ul

I V . Certificates of i n d e b t e d n e s s :
Series TD-1924
Series T M - 1 9 2 5
Series T D 2 - 1 9 2 4 . . Series TS-1925
Series T D - 1 9 2 5 .
Series TJ-1926
V a r i o u s (specimens)
Total..

.

11,455
20, 290
10,430

•
3
3

100
1,774
1,266
53, 519
39,490
32,345

10,000,000.00
56,600,000. 00
36,825,000. 00
665,861,500.00
347,919,000.00
207,392,500. 00

11, 655
22,064
11, 695
53,519
39,490
32,346
94

74,231,000.00
125,378,500. 00
85,048,000. 00
665,861, 500. 00
347,919,000. 00
207,392, 500.00
2,840, 500.00

1,285
4,525
1,560
41,789
28,629
' 23,944

20,824,000.00
69, 212, 600.00
39,007, 600.00
608,162,000. 00
289,791, 500. 00
162,464,000.00

94
.

V I . T r e a s u r y (war) savings securities:
Thrift stamps
._
T r e a s u r y savings s t a m p s
W a r savings s t a m p s —
1918...
1919
1920
1921
T r e a s u r y savings certificates—
1918
1919
1920
1921
} ? ? i \ D e c 15.1921

128, 493

1,323, 598,000.00

170, 762

1, 508,671,000. 00

101,722 1,179,461,600.00

1, 260,983,450. 00

1,012, 504

4, 643,282,060.00

1, 953, 281

5, 794,265, 600. 00

1,042,304 4,364, 268, 450. 00

89.75
62.00

359
62

89.75
62.00

58

14.50

4,109
22
1
2

20,545.00
110.00
5.00
10.00

4,109'
22
1
2

20, 645.00
110.00
5. 00
10.00

6
36
115

30.00
180.00
1 75.00

2
11
4
6

200.00
5,600.00
2, 200. 00
2,250.00

2
11
4
6

200.00
5,600.00
2,200.00
2,250. 00

22

3,550. 00

22

3,550. 00

94

6,775.00

94

6,775. 00 I

802,312

125,586, 625. 00

359
62

,

^ ,Q2S

Total

185,073,000.00

940, 757

.»_

-?HH\Oct 30 1922

V n . T o t a l all p u b l i c d e b t s e c u r i t i e s . .

2,840,500. 00

42, 269

.

V . T o t a l p u b l i c - d e b t b o n d s , notes, a n d certificates of i n d e b t e d n e s s .

1923\-pj

64,231,000.00
68,778, 500.00
49,223,000.00

...

.

.

14,708

2, 554,175. 00

817,020

o

806,996

125,628, o n . 75

14,708

2, 554,175. 00

821,704

128,182,186. 75

1,747, 753

1,376,611,461.75

1,027,212

4, 546,836,225. 00

2, 774, 965

5,922,447,686. 75

td

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o

w

r....

128,140,800.00

Ui

1

4

325.00

63,577

12, 731, 500. 00

63, 666

12, 731, 974. 60

1,105, 970 4,377,000, 424. 50

1 Counter entry, deduct.




CO
C7X

Stock accountability of Federal reserve banks and other Treasury agencies for United States securities for the fiscal year 1925—Continued

CO

05
U n i s s u e d stock r e t u r n e d
to Loans and Currency

U n i s s u e d stock r e t u r n e d
t o Register 2

O n h a n d J u n e 30,1925

T o t a l a c c o u n t e d for

Class of s e c u r i t y
Pieces
I. Liberty bonds:
F i r s t loan, 1932-1947
..
F i r s t loan, 1932-1947
F i r s t loan, 1932-1947
F i r s t second loan, 1932-1947
Second loan, 1927-1942
Second loan, 1927-1942
T h i r d loan, 1928
F o u r t h l o a n , 1933-1938

Pieces

304
7,800
22,617

$20,200.00
690,000.00
12,099,460. 00

$9,170,700.00
13,174, 750.00
64, 776, 750. 00
817,900. 00
16,098,250.00
83,297, 600.00
96,091,860.00
97,897, 650.00

Pieces

Amount

660
10,001
6

Total
I I I . Treasury notes:
Series B-1924
Series A-1926
Series B-1925
Series C-1925
Series A-1926
.
Series B-1926
Series A-1927
..
Series B-1927
V a r i o u s (specimens)

. . . .

3,602
4,576
22, 602
90

900,100.00
1, 482, 600.00
7,651,060.00
300,700.00

24,921

15, 619, 600.00

61, 691

22,944,100.00

427, 111

381, 325,450.00

1,120,903 1, 566,817, 700.00

5,000,000.00
46, 700,000.00

550

666,000.00

28,222
36,591

66,163,700.00
109, 540,300.00

39,157
111,857,700.00
386,499 1,329,262,800.00

51, 700,000.00

550

665,000. 00

64,813

175, 704,000.00

425, 666 1,441,120, 500.00

20,964
24, 506
8,418
22, 618
2,748
7,684
3,740
3,280

47, 754,000. 00
44,258,200.00
11,163, 700. 00
56, 375, 900. 00
1, 369.000. 00
6,137,000. 00
2,632,000. 00
1,560,000.00

20,736

69, i07,355.55

16,94014,997
18,323
23,219
9

45,548,955.55

93, 967

-. -

1, 677,000.00
2,150,000.00
2,100,000.00

19,896
32,641
77,339
2,802
28,613
87, 465
101, 626
77,041

74,760

.

$196,000.00
9,491, 600.00
6,000.00

750
74,000

_

II. Treasury bonds:
T r e a s u r y b o n d s , 1947-1952
T r e a s u r y b o n d s , 1944-1954

171,149,800. 00

10,270
17, 539
10,145
1,130

53,407,000.00
56,166,000. 00
46,040, 600. 00
965,000. 00

39,084

156, 578, 500. 00

. . .
:.
:

.
.*
..

-

I V . Certificates of i n d e b t e d n e s s Series T D - 1 9 2 4
Series T M - 1 9 2 5 . .
Series TD2-1924
Series TS-1925
Series T D - 1 9 2 5
Series TJ-1926
V a r i o u s (specimens)
. . •.
Total

Amount

Amount

Pieces

5,954
4,110
4,200

.. 1

Total

Total

Amount

.

 *


...
550
1,150

i, m , 000.00
7,000,000.00

1,700

8,000,000. 00

94,224

50, 877,900.00
57, 603,900.00
68, 686,100.00
345, 500.00
281, 669, 600.00

10,050
9,711
8,401
94

55, 734,500.00
51,127,500.00
54, 938,500.00
2, 840,500.00

28,256

164,641,000.00

65,476
45, 279
145, 958
3,176
47, 546
230, 366
275, 640
307, 562

21, 740
33,123
33,160
29,032
26,836
29, 611
27, 563
34,876
9

$48,883, 550. 00
14, 632,900.00
134, 924, 650. 00
1,164,400. 00
19, 696,800.00
359,857, 250. 00
425,842,050. 00
561,816,100.00

63,096,100.00
164,256,400.00
156, 688,200. 00
181,296,600 00
182, 606,400.00
179,666,400.00
156, 767,400.00
204,046,300.00
345,500.00

235,940 1, 277, 656,300.00
11, 665
22,064
11, 695
53, 519
39,490
32,345
94

74, 231,000.00
125, 378,500.00
85,048,000.00
665, 861,600.00
347,919,000.00
207,392,500.00
2,840,500.00

170,762 1,508, 671,000.00

o

§

t2|

>

"A
o
Ui

V I . T r e a s u r y (war) savings securities—
Thrift stamps
. . . .
T r e a s u r y savings s t a m p s
^
W a r savings s t a m p s —
1918....
1919
1920
1921
T r e a s u r y savings certificates—
1918
1919
1920
1921.
J^21\j)g(. 15 1921

195,182

351, 337, 400.00

2.00

50

105.00
115
15

1 75. 00
75.00

2

_____

10

625. 00

82

I S o c t . 30,1922

359
52

89.75
52.00

4,082
1
1

20,410. 00
5.00
5.00

4,109
22
1
2

20, 545.00
110.00
5.00
10.00

200. 00
5, 600. 00
2, 200. 00
2,250. 00

2
11
4
6

12

2,926. 00

22

200.00
5, 600.00
2,200.00
2,260.00
3, 550.00

751,853

116,073,150. 00

4,825. 00

1,584

333, 900. 00

8

1, 626. 00

94

6, 775.00

6

2,250. 00

817,020

128,140,800.00

821, 704

128,182,186.76

751,878

Total
V I I . T o t a l all p u b l i c d e b t securities




75.26

10.00

.

Joo5lr>ec. 1,1923

1 Counter entry, deduct.

1, 963, 261 5, 794,265, 500.00

60.00

21

1,003,340,050. 00

2
11
4
6

_

75, 319, 600.00

614,404
301

.

101,371

2

V . T o t a l p u b l i c d e b t b o n d s , notes, a n d certificates of i n d e b t e d n e s s .

116,073,267. 00

1,726

339,400. 00

4,434

37,646. 25

853, 249

190,392,867. 00

196, 908

351, 676,800. 00

618,838

1,003,377, 595. 26

2, 774, 965 5, 922, 447, 686. 75

2 Includes credits allowed by Postmaster General for stock lost by postmasters.

Ui

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d
K!

CO

EXHIBIT

10.

(See Exhibit 3, Items I I - A 3 and F5)

CD
00

o

R E T I R E D AND U N I S S U E D U N I T E D S T A T E S P R E - W A R S E C U R I T I E S O N H A N D J U N E 3 0 , 1 9 2 4 — N O T P R E V I O U B X Y
R E P O R T E D (BELONGING TO PREVIOUS FISCAL YEARS AND DELIVERED TO T H E R E G I S T E R OF T H E T R E A S U R Y
DURING THE FISCAL YEAR 1925)
R e t i r e d securities
Interest
rate

T i t l e of issue

Redemption

L o a n of 1842 .
L o a n of 1843
L o a n of J u l y a n d A u g u s t , 1861
L o a n of J u l y a n d A u g u s t , 1861, c o n t i n u e d
L o a n of 1862
Ten-forties of 1864
F i v e - t w e n t i e s of 1865'
F u n d e d loan of 1881
F u n d e d loan of 1881, c o n t i n u e d
F u n d e d loan of 1891
F u n d e d loan of 1891, c o n t i n u e d
F u n d e d loan of 1907
L o a n of 1908-1918
Mexican indemnity
Spanish i n d e m n i t y
Consols of 1930
P a n a m a C a n a l loan of 1906-1936
P a n a m a C a n a l loan of 1908-1938
P o s t a l savings b o n d s
.

Per cent
6
5
6

_

Exchange,
Loss or deconversion, etc. s t r u c t i o n

.

_

.

5
6
5

.

3H
4K.

_
_.

.

.. .

.-

1 Deduct account adjustment in classification of securities previously reported.

4
3
5
6
2
2
2
2^

1 16, 000. 00
1 1,000. 00
» 26,300. 00
1 293,010,400. 00

Amount

$1,558,000.00
1,435,000. 00
1 $500. CO
600.00
30,000.00

.
:.•

Total




$1,773,000.00
1,404,000. 00
1 8, 500. 00

Total
Unissued
stock

$8,500.00
15,000.00
1,000.00
26,300.00

293,010,400.00
25,110,400. 00

1 26,110,400. 00
100.00
133,800.00
302,469. 01
596,922.64
46,526,100. 00
6,677,800. 00
4,052,600. 00

33,800. 00
665, 435.10
3,892,915. 78
383,457,100. 00

29,215.00

4,000.00

100.00
1 257,872,508.36

709,163,150.88

59,316. 00

54, 800. 00

Pieces

$3,331, 000. 00
2,839, 000. 00
1 500. 00
600.00
30, 000.00

2,315
2,179
1 1
1
30

293, 010, 400. 00
1 293,010,400. 00
25,110,400.00
I 25,110,400.00
100. 00

35, 740
1 35,740
4,627
1 4, 627
1

967,904.11
4, 523,053.42
429,983, 200. 00
6, 677, 800. 00
4,062,600.00
100.00

850
1,128
8,027
35
25
1

451,404, 757. 53

14 591

hj
O
W
H
O
H

W

Q

m

EXHIBIT

11

SUMMARY OF TRANSACTIONS IN INTEREST-BEARING UNITED STATES SECURITIES FOR THE FISCAL YEAR 1925
y bo ds a
P r e - w a r b o n d s L i bre rats u r y nb o n d n d
T e
s
(see E x h i b i t 12) (see E x h i b i t 13)

I . O u t s t a n d i n g J u n e 30,1924

T r e a s u r y notes
(see E x h i b i t 14)

$15,141,755,700. 00

;, 735,309,400. 00

1, 047, 088, 500. 00

50, 000, 000. 00

$883, 703, 790. 00

I I . Issued d u r i n g t h e fiscal year 1925:
A . U p o n original s u b s c r i p t i o n against cash received
B . U p o n exchange, conversion, etc., for securities of e q u a l p a r
v a l u e retired—
1. Exchange—
(a) I n t e r i m certificates
(6) Registered for c o u p o n
(c) C o u p o n for registered
(d) Of d e n o m i n a t i o n s
(e) 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 i
2. Conversion
_.
3. Transfer of o w n e r s h i p
_'
C . U p o n adjudicated claims for r e p l a c e m e n t
_
D . T o t a l issued d u r i n g t h e fiscal y e a r 1926..

T r e a s u r y (war)
savings
securities
(see E x h i b i t 16)

Total

$807, 613, 600. 00 $413,304, 039. 66 $20,981, 586,429.66
Ui

111, 922, 940. 00
1,920. 00

16,600.
243,100.
350, 334, 000.
1, 070, 365, 360.
7, 549,950.
178,650.
282,100.
572, 350.
1, 125,960.

112, 768,760. 00

2,842,756, 550. 00

731, 780. 00

I I I . R e t i r e d d u r i n g t h e fiscal year 1926:
A . A c c o u n t of r e d e m p t i o n —
1. P u r c h a s e s —
(a) Sinking fund
.
2. Securities received for r e d e m p t i o n —
(a) F e d e r a l e s t a t e taxes
(6) Gifts, forfeitures, a n d m i s c e l l a n e o u s .
(c) R e p a j o n e n t s of p r i n c i p a l b y foreign g o v e r m n e n t s .
(d) I n t e r e s t p a y m e n t s o n obligations of foreign governments
1
(e) A t m a t u r i t y or u p o n o p t i o n .
117, 051,150. 00
(/) Proceeds i n p a y m e n t for 4 per c e n t T r e a s u r y
bonds
(g) Sinking fund
.•
(li) N e t earnings F e d e r a l i n t e r m e d i a t e credit b a n k s .




Certificates of
indebtedness
(see E x h i b i t 15)

1 I n c l u d e s c o u p o n error t r a n s a c t i o n s .

1,926,578, 500. 00

23, 247, 204. 21

164,710. 00
24,817,379.21

6, 227,186, 689. 21

444,678, 000. 00

3, 000. 00
3, 500. 00
876,697, 600. 00^ 2, 371,156, 500. 00

18, 374, 000. 00

18,374,000. 00
47,560.00
174, 600. 00

103.95
22,823,000.00

798, 570, 500. 00
93, 274,400. 00

30,000.00
386,100.00

135,970, 600. 00
1,831,602,500. 00

274, 561, 400. 00
287,934,400. 00
152, 200. 00

164, 594, 500. 00

-^-

O

16,600. 00
288,243,100. 00
352,481, 245. 00
2, 340,634, 360. 00
7, 549,950. 00
181,650. 00
9, 282,100. 00
180,496, 290. 00
1, 286, 080. 00

21,416,465. 00
825, 691, 000. 00

3,047, 016, 324.21

60,861,048. 57

47, 560. 00
204,603.95
23, 209,100. 00

%

i

135,970, 500. 00
2,798, 086,198. 67
367,825,800. 00
452, 528,900. 00
162, 200. 00

» I n c l u d e s reissue t r a n s a c t i o n s .
CO

to

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o

Summary of transactions in interest-bearing United States securities for the fiscal year 1925—Continued

Account

I I L .Retired d u r i n g t h e fiscal y e a r 1925—Continued.
B . A c c o u n t of exchange, conversion, etc., for securities of equal
p a r v a l u e issued—
1. E x c h a n g e —
(a) I n t e r i m certificates.
(6) Registered for c o u p o n
(c) C o u p o n for registered
(d) of d e n o m i n a t i o n s
(e) 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 ^
2. Conversion
3. Transfer of o w n e r s h i p
C . A c c o u n t loss or d e s t r u c t i o n (covered b y i n s u r a n c e or b o n d s )
of i n d e m n i t y )

i
y bo ds
P r e - w a r b o n d s L Tbre rats u r y nb o n a n d
e
ds
(see E x h i b i t 12) (see E x h i b i t 13)

$731,780.00

111, 922, 940. 00

$16,600. 00
288,243,100. 00
350,334, 000. 00
1, 070,365, 360. 00
7, 549,960. 00
178, 650. 00
9,282,100. 00
68,672, 360. 00

T r e a s u r y notes
(see E x h i b i t 14)

^ Certificates of
indebtedness
(see E x h i b i t 15)

, 415,466. 00
$825,691, 000. 00

$444, 578, 000. 00

3,'000." 00 •

1, 920. 00

1,125,950. 00

3, 500. 00

229, 707, 790. 00

1, 907,538, 500. 00

2,187, 322,100. 00

IV. Outstanding June 30,1926..
D e d u c t interest-bearing d e b t w h i c h m a t u r e d d u r i n g year..

766,754, 760- 00
1,438, 750. 00

16, 076,973,750. 00

2,423,684,800. 00
19,443,400. 00

V . O u t s t a n d i n g J u n e 30,1925 (per p u b l i c d e b t s t a t e m e n t )

765,316, 010. 00

16, 076,973, 750. 00

2, 404, 241,400. 00

D . T o t a l retired d u r i n g t h e fiscal y e a r 1925.




1 I n c l u d e s c o u p o n error t r a n s a c t i o n s .

T r e a s u r y (war)
savings
securities
(see E x h i b i t 16)

Total

$16, 600. 00
288, 243,100. 00
352, 481, 245. 00
2,340,634,350.00
7,549,950.00
181, 660. 00
9,282,100.00
180,495, 290. 00

154, 710. 00

6, 976, 568, 217. 52

579,101, 600. 00
416, 500. 00

385, 690, 091. 35

20, 232, 204, 901. 35
21, 298, 660. 00

578,685, 000. 00

385,690, 091. 35

20, 210,906, 251. 35

n
o

1, 286, 080. 00

52, 431, 327. 52

O

2, 599, 568, 600. (

t2{

2 I n c l u d e s reissue t r a n s a c t i o n s .
02

E X H I B I T 12.

(See Exhibit 11)

TRANSACTIONS IN INTEREST-BEARING PRE-WAIl BONDS DURING THE FISCAL YEAR
o i

•

-

P a n a m a C a n a l loans
3

1925

•—••

Account

2 per cent
consols of
1930

4 per cent
l o a n of 1925

$599,724,050

$118,489,900

CD

2"per cent of
1916-1936

2 per cent of
1918-1938

3 p e r c e n t of
1961

$48,954,180

$26,947,400

$49,800,000

3.per c e n t
conversion
b o n d s of
1946-47

2 H per cent
postal s a v ings b o n d s ,
first t o
twentye i g h t h series

Total

—f

I . O u t s t a n d i n g J u n e 30, 1 9 2 4 . . .
M
•^

I I . Issued d u r i n g t h e fiscal year 1925:
A . U p o n original s u b s c r i p t i o n s against cash received
B . U p o n exchange, transfer, etc., for securities of e q u a l
par v a l u e retired—
' 1. E x c h a n g e la) C o u p o n for registered
._
2. Transfer of o w n e r s h i p
C . U p o n adjudicated claims for r e p l a c e m e n t
D . T o t a l issued d u r i n g t h e fiscal year 1925. _
I I I . R e t i r e d d u r i n g t h e fiscal year 1925:
A . A c c o u n t of r e d e m p t i o n
.
B . A c c o u n t of exchange, transfer, etc., for securities of
equal par v a l u e issued—
1. E x c h a n g e —
(a) C o u p o n for registered2. Transfer of o w n e r s h i p .. _
C . A c c o u n t of loss or d e s t r u c t i o n (covered b y i n s u r a n c e
or b o n d s of i n d e m n i t y ) . . .
D . T o t a l retired d u r i n g fiscal year 1925
I V . O u t s t a n d i n g J u n e 30, 1925--




$11,893,760

$883, 703,790

102,120

$28, 894, 500

Ui

102,120

o
88,000
58,921, 250

40,200
29,204,650
1,000

40
6,178,440

2,160
3,496, 860

283,400
11,134,100

286,000
2,758,100

31,980
229,540
920

731,780
111, 922,940
1,920

69,009, 250

29,245,850

6,178,480

3,499,020

11,417, 500

3,044,100

364, 560

112, 768, 760

o
117,051,160

117,051,150

w
88, 000
58,-921, 250 .

40,200
29,204, 650

2,160
3,496, 860

283,400
11,134,100

286,000
2,758,100

1,000

31,980
229, 540

731,780
111, 922,940

920

40
6,178,440

1,920

59,009, 250

146,297,000

6,178,480

3,499,020

11,417,500

3,044,100

262,440

229, 707, 790

699, 724,050

1,438,750

48,964,180

25, 947,400

49,800,000

28,894, 500

11, 995. 880

766, 754, 760

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EXHIBIT 13. (See Exhibit 11)
TRANSACTIONS IN INTEREST-BEARING LIBERTY BONDS AND TREASURY BONDS DURING THE FISCAL YEAR 1925

to

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Second L i b e r t y loan of
1927-1942

F i r s t L i b e r t y loan of 1932-1947
Account
First 3H's
I . O u t s t a n d i n g J u n e 30, 1924
I I . Issued d u r i n g t h e fiscal y e a r 1925:
A . U p o n original s u b s c r i p t i o n s against cash received
B . U p o n exchange, conversion, etc., for securities of equal p a r v a l u e r e t i r e d 1. E x c h a n g e Co) I n t e r i m certificates
(6) Registered for c o u p o n
(c) C o u p o n for registered
(d) Of denominatioiLS
(e) 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 i
.
_.
2. C o n v e r s i o n . . .
^
Transfer of o w n e r s h i p
C . U p o n a d j u d i c a t e d claims for r e p l a c e m e n t .
D . T o t a l issued d u r i n g t h e fiscal year 1 9 2 5 . . .
I I I . R e t i r e d d u r i n g t h e fiscal year 1925:
A . A c c o u n t of r e d e m p t i o n —
1 Purchases—
(a) S i n k i n g fund
2. Securities received for r e d e m p t i o n —
(a) F e d e r a l e s t a t e taxes
(b) Gifts, forfeitures, a n d miscellaneous
(c) Proceeds in p a y m e n t for 4 per cent T r e a s u r y b o n d s
B . A c c o u n t of exchange, conversion, etc., for securities of equal p a r v a l u e i s s u e d 1. E x c h a n g e —
(a) I n t e r i m certificates
(b) Registered for c o u p o n
(c) C o u p o n for registered
(d) Of d e n o m i n a t i o n s
(e) 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 i
2. C o n v e r s i o n
3. T r a n r f e r of o w n e r s h i p - _.
C . A c c o u n t loss or d e s t r u c t i o n (covered b y i n s u r a n c e or b o n d s of i n d e m n i t y ) . . . . .
D . T o t a l retired d u r i n g fiscal year 1925I V . O u t s t a n d i n g J u n e 30, 1925

I I n c l u d e s c o u p o n


errorrtransactions.

F i r s t 4's

First 4 H ' s

F i r s t second i}4's

Second 4's

Second 4M's

$1,409,999,000

$7,172, 050

$630,861, 550

$3,492,150

$28,445,000

$3,076,142,150

16,600
30, 875,000
50, 882,900
.12,402,000

512,000

8, 983, 900
9,467,150
39,729, 900
81, 450
4,350
1,928, 700
2,377, 500
30, 250

96, 660
20,150
243,000
1,650

2,187, 750

5,150
20, 600

66,182,960
35, 857, 500
208, 205,450
348, 700
47,200
7, 363,400
9, 768, 350
600, 050

62,603, 200

401,800

3,303,100

328, 363, 600

61, 950
217, 600

16, 950
9,418, 200
1,060

1,550
2,600

103, 612,700

218, 450
870, 250
1,000

?,050

16, 600
30,875,000
50, 882,900
12,402,000

512,000 I
"5i,'950'l
217, 500 i

16, 950

28,400

8,983, 900
9,467,150
39, 729,900
81,450
4,360

96,660
20,150
243,000
1, 650

2,377, 500
30,260

40, 350

2,187, 760
218,450
870,260
1,000
7,353,400
5,150
20,500

66,182,960
35,857,600
208,205,450
348,700
47, 200

9,418, 200
1,050

1,928,709
1,560
2,500

103, 616, 760

2, 714,200

60, 676,560

401, 800

10,656, 500

321,038,600

1,409, 995, 960

5, 243,350

532,788,200

3,492,160

21,091,600

3,083,467,15C»

9,768,350
600,050

O
O

Third 4M's

Account

I. Outstanding June 30, 1924

.

II. Issued during the fiscal year 1925:
A. Upon original subscriptions against cash received
B. Upon exchange, conversion, etc., for securities of equal par value retired1 Exchange—
(a) Interim certificates
(b) Registered for coupon
..(c) Coupon for registered
.
-.
(d) Of denominations.
(e) Temporary for permanent---•
1.
(0 Mutilated for perfect i
—
.2. Conversion.
3. Transfer of ownership.
...C. Upon adjudicated claims for replacement..

D. Total retired during fiscal year 1926.

1 Includes coupon error transactions.




4H per cent
Treasury
bonds

$2,997,199,950

$6,324,495,650

4 per cent
Treasury
bonds

$763, 948,300

-

Total

$15,141,765,700
$1,047,088,500

78, 508, 300
26,974, 650
248,183, 900
2, 220,750
64,600

88, 272, 650
137,803,450
380,799,900
3,809, 650
54,550

10,012,900
20, 569,400
31,152,800

10,721,600
179, 950

30,449, 360
266,150

2,122,900
25, 500

3, 667, 600

366,843, G50

D. Total issued during the fiscal year 1925-.
IIL Retired during the fiscal year 1925:
A. Account of redemption—
1. Purchases—
(a) Sinking fund
2. Securities received for redemption—
(a) Federal estate taxes
(6) Gifts, forfeitures, and miscellaneous
(c) Proceeds in payment for 4 per cent Tieasury bonds
-B. Account of exchange, conversion, etc., for securities of equal par value issuedExchange—
(a) Interim certificates
(6) Registered for coupon
(c) Coupon for registered
(d) Of denominations
(e) Temporary for permanent.
(/•) Mutilated for perfect 1
Conversion
Transfer of ownership..
C. Account loss or destruction (covered by insurance or bonds of indemnity).
IV= Outstanding June 30, 1926

Fourth 4^'s

641,455, 600

63,883, 500

1, 271, 503, 900

2, 611,100
68, 758, 800
149,378, 000

1,047,088, 500
16,600
288, 243,100
350, 334,000
1,070, 365,350
7, 649,950
. 178,650
9, 282,100
68,572,360
1,125,950

Ui

Q
H

2, 842, 766, 550

o
18,374,000

18,374,000

47, 650
174, 500
93, 274,400

46,500
127, 700
93, 274,400

1,050
13, 300

78, 508, 300
26,974,650
248,183, 900
2,220,750
64,600

88, 272, 550
137, 803,460
380, 799, 900
3, 809,650
54, 550

10,012,900
20, 569,400
31,152,800

2,611,100
68, 758, 800
149,378,000

10, 721, 500
179, 950

30,449, 350
266,150

2,122,900
25,600

3,667, 600

478,666, 250
2,885,377, 350

641,469,950

63,883, 600

6, 324,481, 200

763,948, 300

224,415,400
1,047,088, 600

16,600
288,243,100
360, 334,000
1,070,365,350
7, 549,960
178,650
9, 282,100
68, 572,350
1,125,960

Ui

1,907,638, 500
' 16,076,973, 750

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ExHEBiT 14.

(See Exhibit 11)

to
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TRANSACTIONS IN INTEREST-BEARING TREASURY NOTES D U R I N G THE FISCAL YEAR

Account

I. Outstanding June 30,1924
II. Issued during'the fiscal year 1925:
A. Upon original subscription against
cash received..
B. Upon exchange, conversion, etc., for
securities of equal par value retired1. Exchange—
(fl) Of denominations ^
(6) Mutilated for perfect
C. Upon adjudicated claims for replacement
D . Total issued during the fiscal year
. 1925

Series
B-1924

Series
A-1925

Series
C-1926

Series
A-1926

Series
B-1926

Series
A-1927

Series
B-1927

Adjusted
service
series 1930

Total

$3,736,309,400

$377,681,100 $697,325,900 $299, 659,900 $406,031,000 il;61.5. 707.900 $414,922, 300 $355,779,900 $668,201,400
$50,000,000

60,000,000

o
16,341,100

110,098, 200

76,420, 200 124,930,800
1,000
2,000

136,104, 500 122,700, 500

96, 238, 500 143,857,200

500
16,341,100

110,098, 200

III. Retired during thefiiscalyear 1926:
A. Account of redemption—
1. Securities received for redemption—
(a) Gifts, forfeitures, and
miscellaneous
(&) Repayments of principal
by foreign governments
. .
177) 500
208, 600
(c) Sinking fund
. 100,000, 000 100,000, 000
id) Net earnings Federal int e r m e d i a t e credit
banks
152, 200
(e) Proceeds in payment
for 4 per cent Treas. ury bonds
274,651,400
(f) Maturity and upon option
276,888, 300 220,648,700




Series
B-1925

1925

76,422, 200 124,931,800

96,241, 600

3,500

3,000

136,104, 600 122, 701,000

826,691,000
3,000,

143,857, 200 50,000,000

875, 697, 500

30,000

30,000

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o

o
Ui

386,100
287,934,400

87,934, 400

152,200
274, 551,400
301,033, 500

.

798, 670, 500

B . A c c o u n t of exchange, conversion, etc.,
for securities of e q u a l p a r v a l u e issued—
1. Exchange—
(a) Of d e n o m i n a t i o n s 2
(6) M u t i l a t e d for perfect
C . A c c o u n t loss or d e s t r u c t i o n (covered
b y i n s u r a n c e or b o n d s of i n d e m nity
. . .

143, 867, 200

825, 691, 000
3,000

96, 24i, 500

143, 857, 200

2,187, 322,100

356, 779,900

668,201,400

15,341,100

110,098,200

76,420, 200
2,000

124,930,800
1,000

136,104, 600

122,700, 600

500

3,000

D . T o t a l retired d u r i n g fiscal year 1926. _. 392, 590, 200

705,475,800

76,422, 200

513,899,700

136,134, 500

122, 701,000

432,000

1,948, 300

299, 659,900

17,063,100

615,677,900 i 414.922.300

I V . O u t s t a n d i n g J u n e 30,1925

1 Includes deliveries against receipts by other Federal ret^rve b^nks.




96, 238,500

3,600

50, 000,000

2,423, 684,800

2 Includes receipts against deliveries by other Federal reserve banks.

e

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EXHIBIT

15.

(See Exhibit 11)

o

TRANSACTIONS IN INTEREST-BEARING CERTIFICATES OF INDEBTEDNESS DURING THE FISCAL YEAR 1925
Series
TD-1924

Account

I

T o t a l issued d u r i n g t h e fiscal y e a r 1925

-

--

I I I . R e t i r e d d u r i n g t h e fiscal year 1925:
A . A c c o u n t of r e d e m p t i o n —
T. Securities received—
(a) I n t e r e s t p a y m e n t s o n obligations of
foreign g o v e r n m e n t s
(6) R e p a y m e n t s of principal b y foreign
governments
(c) Proceeds i n p a y m e n t for 4 per cent
Treasury bonds .
(d) M a t u r i t y a n d u p o n option
B . -Account of exchange—
1. Of d e n o m i n a t i o n s ^
C. T o t a l retired d u r i n g t h e fiscal year 1926
I V . O u t s t a n d i n g J u n e 30, 1925.

Series
TS-1925

Series
TD-1925.

Series
TJ-1926

Adjusted
service
series 1920

Special

Total

$807, 513, 500
$391, 369,500 $219,462,000 $124,247,000 $50,000,000 $1,141, 500,000 1, 926, 578, 500

20,824,000

69, 217, 500

39,007, 500

216.792.500

70, 529,600

28,207,000

20,824,000

69,217, 600

39,007,500

608,162,000

289,991,600

162,454,000

444, 578,000
50,000,000

o

1,141, 600,000 2, 371,156, 500

O
2,075,000

5,041,000

128,854,500

695,000

1,689,000

20,439,000

135, 970, 500
22, 823,000

211,275, 600

164, 594,500
235,395, 500

^^500,000

40,000,000

20, 824,000

69, 217, 600

39,007,500 j 216,792,500

70, 629,500

28,207,000

234,869, 500

469,207, 500

232,069,000 j 378,686,000

110,529,500

103, 500

309,000

4,000 ! 229. .576-000

179,462,000

1 Includes deliveries against receipts by other Federal reserve banks.




Series
TD2-1924

$214,149, 000 $400, 299,000 $193,065,500

O u t s t a n d i n g J u n e 30. 1924

I I . Issued d u r i n g t h e fiscal year 1925:
A . U p o n original s u b s c r i p t i o n against cash r e c e i v e d . .
B . U p o n exchange for securities of e q u a l p a r v a l u e
retired—
1 Of d e n o m i n a t i o n s ^
C

Series
TM-1925

j?\=

186,331,500

4, 600,000

164, 594, 500
1,141, 500, 000 1, 831, 602, 500

28,207,000

4, 600,000

1,141, 500,000 2, 699, 568, 500

124,247,000

46,400,000

679,101, 600

.<^

444, 578, 000

2 Includes receipts against deliveries by other Federal reserve banks.

a
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EXHIBIT 16. (See Exhibit 11)
TRANSACTIONS IN TREASURY (WAR) SAVINGS SECURITIES DURING THE FISCAL YEAR 19J^5
Interest-bearing securities

Matured securities
Symbols!

Issue of Dec. 16,1921
Series 1918

Series 1919

Series 1920

Series 1921
Series 1921

I . Outstanding June 30, 1924 2
_
Plus accrued discount liabilities

_

_

Total value of outstanding securities June 30,1924

_

P
I

P
I
I
P
P

(c) Total retired during fiscal year 1926 .
IV. Outstanding June 30,1925 «
Plus accrued discount liabilities
Total value of outstanding securities June 30,1926

5, 917,775. 00

$20,584, 099. 95 $12,003,926. 87
4, 640, 039. 40
1,944,865. 86

$1, 825, 256. 60

$99,853, 660. 75

13, 948,792. 72

1,825, 256. 60

99,853, 660. 75

26,224,139. 35

8 6 20. 00
3,387,101. 70

3 25. 38

3132. 09

3 6 133.19

6 582. 34

6141. 68

448,103. 31
4,860. 00
1, 630. 00

484,062. 04
21,480. 00
580.00

6 566. 96

P
P
I
P
P

(/) Total issued during the fiscal year 1925
III. Retired during fiscal year 1925:
(a) Account of redemption—
1. Charged to "principal". .
2. Charged to " interest"
(6) Adjustment of excess war savings stamps surrendered account
of issues of Treasury savings certificates
(c) Account of exchange, etc., for securities of equal par value
(d) Account of loss or destruction

$5,917, 775. 00

12, 643,195. 00

..

II. Issued during fiscal year 1926:
(a) Upon original subscription against cash received
(&) Accrued discount credited as public debt receipts
(c) Accrued discount not credited as public debt receipts
(d) Upon exchange, etc., for securities of equal par value retired..
(e) Upon adjudicated claims for replacement

$12, 643,196. 00

Series 1922

6 9.59

454, 460.12

505,826.80

72,177.15

3, 788, 266. 70

fl 642. 60
3,895, 980. 64

108. 77
3, 667,146. 64

20, 583, 966. 76
2, 734, 292. 71

817,112. 31

80, 258. 90

6,307, 290. 20

4,860. 00
1, 630. 00

21,480. 00
580.00

6, 525. 00
225. 00

367,176. 00
34, 000. 00

23,324, 749. 47

839,172.31

87, 008. 90

6, 708, 465. 20

6 600. 00
3,895, 338. 04

P
I

3, 666,755. 41

3 6 285.24

65,427.15
6, 625. 00
225. 00

367,176. 00
34,000. 00

2,353,850. 00

11,186,529.32
2,428,917.89

1,810, 424. 86

2, 261,010. 00

8, 747,300. 00

2, 261,010. 00

2,363,850.00

13, 616,447. 21

1,810,424. 86

96, 933, 452. 25

1 Symbol " P " indicates items which reflect transactions affecting the principal of the public debt which are to be considered in reference to amounts shown in Exhibits 3 and 11.
Symbol " I " indicates items which affect and have reference to outstanding public debt liabilities reported as "Discount accrued" under the classification "Matured interest obligations."
* Series 1920 to 1923, issue of December 1, 1923, inclusive, were on basis of sales reports; series 1924 and thrift and Treasury savings stamps were on basis of Treasurer's net cash
receipts.
3 Adjustments in sales reports subsequent to June 30,1924.
« Series 1921 to 1924, inclusive, on basis of sales reports; thrift and Treasury savings stamps on basis of Treasurer's net cash receipts.
»Adjustment; deduct.




Ui

96, 933,452. 26

8, 747, 300. 00

o

to

o

to

Transactions in Treasury {war) savings securities during the fiscal year 1925—Continued

o

00
I n t e r e s t - b e a r i n g securities
Symbols

Issue of S e p t e m b e r 30,1922
Series 1922

I. O u t s t a n d i n g J u n e 30, 1924 '
P l u s accrued d i s c o u n t liabilities

_.

T o t a l v a l u e of o u t s t a n d i n g s e c u r i t i e s ' J u n e 3 0 , 1 9 2 4 . . .
I I . I s s u e d d u r i n g fiscal year 1925:
(a) U p o n original s u b s c r i p t i o n against cash r e c e i v e d . . .
(6) A c c r u e d d i s c o u n t credited as p u b l i c d e b t r e c e i p t s . .
(c) A c c r u e d d i s c o u n t n o t credited as p u b l i c d e b t receipts
(d) U p o n exchange, e t c . , for securities of e q u a l p a r
value retired
(c) U p o n a d j u d i c a t e d claims for r e p l a c e m e n t
(J) T o t a l issued d u r i n g t h e fiscal y e a r 1925
._.
I I I . R e t i r e d d u r i n g fiscal y e a r 1925:
(a) A c c o u n t of r e d e m p t i o n —
1. C h a r g e d t o " p r i n c i p a l "
2. C h a r g e d t o " i n t e r e s t "
(&) A d j u s t m e n t of excess w a r savings s t a m p s s u r , r e n d e r e d account of issues of T r e a s u r y savings
certificates.
(c) A c c o u n t of exchange, etc., for securities of e q u a l
""par v a l u e
...
id) A c c o u n t of loss or d e s t r u c t i o n

P
I

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 30,1925

Series 1923

Series 1924

92,163, 690. 60 4,123, 542.09

141,064,348. 60

26, 778, 772. 40

426, 770. 40

31,845. 00
3,834, 613.96

846,114. 40

46, 275. 00
6, 650. 00

348, 700. 00
57,725. 00

67,360. 00
10, 226. 00

653,100. 00
43, 675. 00

479, 695. 40

P
P

Thrift a n d
T r e a s u r y savings s t a m p s ,
unclassified
sales, e t c .

4,242,883.96

923,689. 40

15, 276,104. 60

1, 280, 478. 40

10,728,719.20

2,162,132. 65

8, 639, 798:85

< 11, 282,307. 30
3, 397,022. 30

6, 440. 44

I
P
P

P
I

Total

$15,906, 741. 90 $141,064,348. 60 $25,778, 772. 40 $92,163, 690. 60 $4,123, 642. 09 $413,304,039. 66
6, 684, 905. 25
15,906, 741. 90

Total matured
a n d interestbearing
securities

$413,304,039. 66
25,145,875. 25

419,888,944. 91

438,449,914. 91

11, 290,154. 31
11,957,049. 90

11, 290, 311. 78
11,967,049. 90

932,166. 35

931,431. 33

1, 415, 466. 00
154, 710. 00

1,415,465.00
154,710 00

6,440. 44

25, 749,,534. 56

261, 395. 25

50, 861,152. 62
2, 734, 292. 71

50,860,618. 69
10, 297,419.99

o

t2j

>

6 500 00

o

1, 415,465. 00
154, 710. 00

Ui

P
P

46, 275. 00
6, 650. 00
1,333, 403. 40

11,135,144. 20

9, 236, 573. 86

261, 395. 26

55,166, 620. 23

62, 727, 713. 68

P
I

16,053,033. 90

134,172,088. 25

24,462,754.15

98, 203, 221. 35

3,868, 587. 2S

386, 690,091. 35
4, 782,767.89

385, 690,091.35
15, 781,077.89

15,053,033. 90

134,172, 088. 25 24, 462,754.15

98, 203, 221. 35

3,868, 587. 28 390, 472,859. 24

401, 471,169. 24

348, 700. 00
57, 725. 00

67,350. 00
10,225. 00
2, 239,707. 65

1, 415,465. 00
154, 710. 00

553,100. 00
43, 676. 00

2 Series 1920 to 1923, issue of December 1,1923, inclusive, were on basis of sales reports; series 1924 and thrift and Treasury savings stamps were on basis of Treasurer's net
cash receipts.
8 Adjustments in sales reports subsequent to June 30,1924.
< Adjustment of difference between Treasurer's net cash receipts to June 30,1924, and total sales^reported taken up as cash subscriptions during the fiscal year.
« Series 1921 to 1924, inclusive, on basis of sales reports; thrift and Treasury savings stamps on basis of Treasurer's net cash receipts.
8 Adjustment; deduct.




O

25, 748,968. 01

I

(e) T o t a l retired d u r i n g t h e fiscal year 1925
I V . O u t s t a n d i n g J u n e 30, 1926*
P l u s accrued d i s c o u n t liabilities

Series 1923

Issue of D e c . 1,1923

E X H I B I T 17
LIBERTY BOND AND VICTORY NOTE CONVERSIONS FROM NOVEMBER 15, 1917, TO JUNE 30, 1925
Converted into—
Issue

First SH's
First 4's
First 4 ^ ' s First secon^ 43^'s
Second 4's
Second 4M's
_
Third 4 K ' s . . Fourth ^M's
Victory SM's
Victory 4 ^ ' s
Total




Original issue

.1 $1,989,455,650

3,807,866,000
4,175,650,050
6,964, 581,100
672, 585,100
3,822,787,900
21,432,924,700

Issued on conversion

$568,318, 450
655,126. 600
3,492,160

First 4's
$568,318,450

First 4M's

First second
4M's

$7, 670,650
547, 555,050

$3,492,150

Second 4M's

424. 666, 750
605,068,900
5, 764,363,800

568,318,450

655,125, 600

3,492,150

' Includes full-paid interim certificates not exchanged for 3H per cent bonds.

Redeemed to
June 30, 1925

$78,450
16, 520, 060
22,337,400
$3,707,691,950

3, 707,691,960

Victory 3M's Victory 43^'s

3, 707,691,950

79,081,450
624,224, 800
1, 290, 272, 700
640,099,900
2 592,142, 650
$506,068,900
$424, 666, 750
2 3, 896,461, 660
424, 666, 750

505, 068,900

7,160,219,050

Outstanding
June 30, 1925

$1,409,995,960
5, 243,350
532, 788, 200
3, 492,160
21,091, 600
3,083,467,150
2, 886, 377, 350
6,324,481, 200
40,300
6, 728,400

Ui

o
w
H

o

14, 272, 705, 650

2 Now included in matured debt.

Ui

d

to

o

CD

EXHIBIT

18
o

CERTIFICATES OF INDEBTEDNESS ISSUED THROUGH EACH FEDERAL RESERVE BANK AND TREASURY DEPARTMENT DURING FISCAL YEAR 1925
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 a c t a n d series

Issued i n a n t i c i p a t i o n of income a n d profits
taxes, 1926:
S e p t . 24, 1917, as a m e n d e d —
Series TS-1925-_
Series TD-1925

D a t e of
issue

D a t e of
maturity

Rate
Total
amount

S e p t . 15,1925
D e c . 15,1926

3

$391, 369, 600 $36, 778, 500
219, 462, 000 10,724, 000

Cleveland

Richmond

$147, 736, 600 $41,306,000 $36,036, 000 $13, 678, 000
7,122, 600
98,871, 000 11,217,500 16,777, 000

Atlanta

J u n e 15,1926

3

.. - .
Jan.

1,1925

Jan.

1,1926

4

$9,131,000
5,843, 600

61,813,000

20, 700, 600

14,974, 500

16,100, 000

18,283, 000

4,820, 500

18, 283, 000

4,820, 500

70, 096, 000

25, 521, 000

H

8,376, 600

67,623, 500

o

8,375, 500

15,100, 000

23, 350, 000

47, 502, 500

246, 606, 600

52, 623, 500

124, 247, 000

10, 054, 000

18,437, 000

124,247, 000

J u n e 15,1926

Grand total._




Philadelphia

610,831, 500

Total

Adjusted service series, 1926:
S e p t . 24,1917, as a m e n d e d
Special sho*rt-term 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.

New York

Per cent
S e p t . 15,1924
M a r . 16,1926

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
taxes, 1926:
S e p t . 24,1917, as a m e n d e d —
Series T J - 1 9 2 6 . .

Boston

10, 064,000

18, 437, 000

735, 078, 500

57, 656, 600

265, 043, 600

o

O

60,000, 000

Ul
Various

Various

V a r i o u s . 1,141, 500, 000

19, 000, 000

995, 000, 000

65.000, 000

13, 000, 000

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

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
taxes, 1925:
S e p t . 24,1917, as a m e n d e d —
Series TS-1925
Series TD-1925

S e p t . 15,1924
M a r . 16,1925

Sept. 15.1925
D e c . 16', 1925

Dallas

San
Francisco

St. L o u i s

Minneapolis

$5,117, 500
8, 322, 000

$8,056, 500
5, 511, 000

$7, 564.000
5, 816, 000

$7, 656, 000 $33,791, 600
8,454,000 14,941, 000

71, 481, 500

13,439, 600

13, 567, 500

13, 380, 000

16,110,000

Treasury

48, 732, 500

P e r cent

Total
Issued i n a n t i c i p a t i o n of income a n d profits
taxes, 1926:
S e p t . 24,1917, as a m e n d e d —
Series TJ-1926

Kansas
City

Chicago

$44,619,000
26, 862. 600

Rate

26, 675, 600

4, 305, 600

3, 702, 000

2,140, 500

4, 668, 000

25, 675, .500

4, 305, 600

3,702, 000

2,140,-500

4, 668, 000

8, 685, 500

G r a n d total . .

97,157, 000

17, 745, 000

17,269, 600

16, 520, 500

20, 778, 000

o
w

8, 685, 600

Total

57, 418, 000

Adjusted service series, 1926:
S e p t . 24,1917, as a m e n d e d
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__




J u n e 15,1925

Jan.

1,1925

Various

J u n e 16,1926

Jan.

1,1926

Various

3

$501000,000

4
Various.

O

49, 600, 000

'
hi

w
l>
Ui

to

EXHIBIT

19
to

R E G I S T E R E D I N T E R E S T - B E A R I N G BONDS OUTSTANDING AND N U M B E R O F R E G I S T E R E D ACCOUNTS J U N E 30,
1925, CLASSIFIED B Y ISSUES, A M O U N T O F I N T E R E S T PAYABLE, AND N U M B E R OF CHECKS D R A W N D U R I N G
T H E FISCAL YEAR 1925
Registration
Outstanding
June 30,1924

Issue

Outstanding
June 30,1925
Increase

I. Bonds:
A. Pre-war bonds—
1. 2 per cent consols of 1930
'.
2. 2 per cent Panama Canal loan of 1916-1936
3. 2 per cent Panama Canal loan of 1918-1938
4. 3 per cent Panama Canal loan of 1961
•.
5. 3 per cent conversion bonds of 1946-47
6. 2 ^ per cent postal-savings bonds (first to twentysixth series)
_

$48,000.00
40.00
160. 00
153,'500. 00
286,000. 00

$599,160,060. 00
48,953. 220. 00
25,946, 220. 00
44,376, 500. 00
11,637,400.00

Interest payable during
fiscal year

7,606 $11,982,219. 00
979,064. 00
939
545
518,923. 60
1,500
1,329,460. 00
104
340, 782. 00

Number of
checks
drawn
during
fiscal year

30,297
3,811
2,198
6,196
412

B. Liberty bonds—
1. First Liberty loan of 1932-1947—
(a) First 31^'s
(6) First 4's
(c) First 4K's
(d) First second i}4's
.
2. Second Liberty loan of 1927-1942(a) Second 4's
(6) Second 4K's.
3. Third Liberty loan of 1928
4. Fourth Liberty loan of 1933-1938.

O

11,620,680.00

117,020. 00

11,737,700.00

3,039

290,389. 75

6,266

604,720. 00

741,710,090.00

13,633

15,440,828.36

49,170

416,921,400. 00
3,817,150.00
144, 655,600. 00
1,086,050. 00

20,114
11,588
100,493
977

14, 232,366. 75
196, 567. 00
6,085,130.82
47,169.07

41,415
25, 867
203, 629
2,017

>
o

4,920,950.00
27,571,950.00
63, 500,160.00

13,612, 600.00
613,058,800.00
599,025,650. 00
1, 626, 623, 400. 00

47,258
301,218
567,065
816,785

696,677. 00
26, 501,369. 00
26,824,173. 64
68, 056, 760. 50

105,006
613, 052
1,191,946
1,681, 527

Ui

97,506,700.00

3,417,700,650. 00

1,865,498

142, 638,083. 68

3,864,468

91,122,000. 00
217,074,000. 00

6,602
14,864

1, 716, 236. 00
9, 043,468.86

6,209
29,491

395,913,500.00
6,254,300.00
143,141,660.00
1,162, 660. 00

20,007,900. 00
1,413,950. 00

18,533,450. 00
640,630,750.00
662,625,800. 00
1, 577,092,600. 00

C. Treasury bonds—
1. 4 per cent Treasury bonds of 1944-1964...
2. 4}i per cent Treasury bonds of 1947-1952.

70,952,750.00

$1,437,150. 00
76,500.00

49,530,900. 00

3,444, 254,500.00

6. Total Liberty bonds.

206,617,600.00

91,122,000. 00
10, 656,600. 00

..

206,617,500.00

101,678,500. 00

308,196,000. 00

20,366

10, 759, 704.86

II. Total registered Interest-bearing bonds outstanding, e t c .

4, 391,877,370.00

173,235,970. 00

97,606, 700. 00 4,467,606,640. 00

1,899,497

168,838,616.89




O

741,105,370.00

7. Total pre-war bonds.

3. Total Treasury bonds.,...

$599,112,050.00
48,963,180.00
25,946,060.00
44, 222,000. 00
11,251,400.00

Decrease

Number
of accounts
June 30,1925

3,948,328

H

213

SECRETARY OF T H E TREASURY
EXHIBIT

20

INSULAR AND DISTRICT OF COLUMBIA LOANS—CHANGES DURING
THE FISCAL YEAR ENDED JUNE 30, 1925

Loan

Issued
account
original
subscription

Retired
account
redemption

Issued and
" retired
^
Outstandaccount
exchanges, ing June
30, 1926
transfers,
etc.

Rate

Outstanding June
[ 30, 1924

Per cent
4

$7,000,000

$615,000

$7,000,000

2,600,000
1,000,000
1,500,000
4,000,000

200; 000
101,000
380,000
481,000

2,600,000
1,000,000
1,600,000
4,000,000

1,000,000
2,000,000
1, 000,000
125,000

86,000
291,000
28,000
12,000

1,000,000
2,000,000
1,000,000
125,000

6,000,000

1,086,000

6H 2, 760,000
6H 10,000,000
5
6,000,000

6,000

6,000,000
2,760,000
10,000,000
5,000,000
2, 760,000

PHILIPPINE ISLANDS

Land purchases, 1914-1934
Public improvement:
First series, 1915-1936
Second series, 1916-1936
Third series, 1919-1939
Loan of 1916-1946 .
'City of Manila, sewer and water:
First series, 1915-1936. .
Second series, 1917-1937
Third series, 1918-1938
•City of Cebu, 1921-1941
Manila, port works and improvements, 1920-1930-1960.-..
•City of Manila, 1920-1930-1950 „.
Public improvement, 1921-1941
Loan of 1922-1952
•Collateral loan, 1922-1950
Irrigation and permanent public works, 1922-1962 _
Loan of July 15, 1922-1952
Loan of 1925-1935-1956

5K2

2,750,000

4H 7,250,000
4>^ 23,000,000
5

$2,250,000

76,875,000

3,250,000

Total

9, 500,000
23,000,000
1,000,000

1,000,000
3,284,000

80,125,000

PORTO RICO

Road loan of 1910-1920-1927
San Juan Harbor:
Series 1 9 1 4 . . . .
Series 1915
Series 1917
._
ilrrigation loans:
Series 1913-1933-1943
Series 1913-1944-1960
Series 1914-1951-1954.
Series 1915-1955-1958
Series 1916-1959-1960. .
Series 1918-1958-1959
Series 1922-1961-1962
Series 1923-1929-1941
Series 1924-1942-1949.
JPubhc improvement:
Series 1914-1925-1939..
Series 1916-1927-1930.
Series 1918-1927-1930
Series 1919-1931-1934
Series 1920-1937-1940
Series 1922-1941-1944
Series 1923-1944-1948
Series 1923-1943-1955
jRefunding loans, series 19141923-1953...
-'Refunding municipal loans:
Series 1915-1919-1936
Series 1916-1918-1927
High-school building loan, 19251945..
House-construction loan. Series
A, 1920-1945
:._i.
'Workingmen's house construction: Series 1920-1941-1942
-Munoz Rivera Park loan, series
1924-1929-1938

4

320,000

$320,000

4
4
4

127,000
200,000
100,000

108,000
8,000

4
4
4
4
4
4
6
4H
4M
4
4
4
4M
4H
5
5
6
4

1,000,000
700,000
400,000
400,000
200,000
200,000
260,000
975, 000

\

1,000,000
500,000
600,000
1,000, 000
1,000,000
1,000,000
1,000,000
3,000,000

19,000
192,000
100,000
206,000
129,000
19,000
66,000
6,000
363. 000
804,000

600,000

22,000
35,000
145,000

1,000,000
700,000
400,000
400,000
200,000
200,000
260,000
976, 000
600,000

145,000
86,000
273,000
968,000

1,000

3,000,000

999,000
600,000
500,000
1,000,000
1,000, 000
1,000,000
1,000,000
6,000,000

555,000

40,000

9,000

515,000

4
4

194,000
120,000

21,000
30,000

48,000

173,000
90,000

300,000

1,000

300,000

4H

250,000

47,000

250,000

4M

500,000

25,000

500,000

200,000

200,000

528,000

3,565,000

19,063,000

3,503,750

25,000

105,800

200,000
15,791,000

Total

3,800,000

DISTRICT OF COLUMBIA

'60-year funded loan of 1924.._




3.66

3,609, 550

214

REPORT ON T H E FINANCES
EXHIBIT

21

R E T I R E D AND UNISSUED S E C U R I T I E S , N O T A F F E C T I N G T H K
r PUBLIC DEBT OF THE UNITED STATES, DELIVERED TO T H E
REGISTER OF THE TREASURY DURING THE FISCAL YEAR
ENDED JUNE 30, 1925
R e t i r e d account of—
T i t l e of security

Interest
rate

Redemption

Exchange,
transfer,
etc.

Total
Unissued
stock
Pieces

Amount

PHILIPPINE LOANS

L a n d purchases, 1904-1914-1934 .
Public improvement:
F i r s t series, 1906-1915-1935
Second series, 1906-1916-1936
T h i r d series, 1909-1919-1939
C i t y of Manila,, sewer a n d w a t e r :
F i r s t series, 1905-1915-1935
Second series, 1907-1917-1937
T h i r d series, 1908-1918-1938
C i t y of C e b u , 1911-1921-1941
L o a n of 1916-1926-1946
Manila port works and improvem e n t s , 1920-1930-1950
L o a n of 1922-1952

P e r cent
4

$615,000

318

$615,000-

200, 000
1.01,000
380,000

128
38
380

200,000
101,000'
380,000-

86,000
291,000
28, 000
12, 000
481, 000

41
93
28
12
112

80,000
291,000'
28,000
12,000481, 000

1,085,000
5,000

347
5

1,085,000^
5,000-

3,284, 000

1,502

4
4
4
4
4
4
4
4

.

53/2
5

T o t a l P h i l i p p i n e loans

3,284,000

PORTO RICO LOANS

R o a d loan, 1910-1920-1927
Irrigation loan, 1913-1933-1943...
Irrigation loans, 1913-1944-1950:
Series A
Series B
Series C
Series E
•
Series F .
Series G :
Irrigation loans, 1914-1951-1954:
Series A
Series B .
. ..
Series C
Irrigation loans, 1915-1955-1968:
Series E
Series G
.
.
Irrigation loans, 1918-1958-1959:
Series A
Series B
._ .
Irrigation loans, 1923-1929-1941:
Series A
.
. . . .
.
Series B
Series C
Series D
Series E .
_.
. ,.
.
Series F
Series G
Series H
Series I
.
.
Series J .
Series K
Series L
. . . . .
.
Series M
Irrigation loans, 1924r-l942-1949:
Series N
._
Series 0
. , . . _ .
Series P
Series Q
Series R
Series S
Irrigation loans, 1924-1942-1949:
Series T
Series U —
P u b l i c - i m p r o v e m e n t loan, 1914-19251939
P u b l i c - i m p r o v e m e n t loans, 1916-19271930:
Series B
Series C
Series D
..'.




205, 000

190
41

960,000205, 000

25, 000
29, 000
29,000
2, 000
38, 000
6,000

9
13
,13
2
10
6

25,000'
29, 0.00
29,000
2,000'
38,000 •
6,000'

1,000
10,000
8,000

1
2
4

1,00010,000
8,000'

20,000
36,000

20
36

20,000 •'
36, 000'

4,000
1,000

4
1

4,000
1,000

85
69
40
91
76
106
76
50
101
123
200
200
200

85,000
59,000
40,000
95,000
85, 000
110,000
75, 000
60, 000
101,000
123,000
200,000
200,000
200,000

150,000
115,000
100,000
100, 000
92, 000
75,000

150
115
100
100
92
76

150,000
116,000
100,000
100,000
92,000
75, 000

75,000
97,000

75
97

75, 000
97, 000

22,000

10

22,000

10, 000
5,000
20, 000

2
1
4

10,000
6,000
20,000

$950,000

1

\

45, 000
6,000
5,000
10, 000
5,000
20, 000

4>l

30, 000
7,000
76,000
76,000
75,000

43J
4H
4K2
4J^
4M
4H
43/2
4H
4M

.

40,000
63, 000
40, 000
90,000
75, 000
105, 000
55, 000
50,000
71,000
116, 000
125, 000
125, 000
125,000

215

SECKETABT OP THE TEEASUEY

Retired and unissued securities, not affecting the public debt of the United Statesf.
delivered to the Register of the Treasury during the fiscal year ended June 30,1925—
Continued
R e t i r e d account of—
T i t l e of security

Interest
rate

P u b l i c - i m p r o v e m e n t loans, 1918-1927- Percent
1930, series H
4
P u b l i c - i m p r o v e m e n t loans, 1920-19371940:
Series B
434
Series C
434
Series D
434
P u b l i c - i m p r o v e m e n t loans. 1922-19411944:
Series A
5
Series C
5
5
Series D
P u b l i c - i m p r o v e m e n t loans, 1923-19441948:^
Series A
_
5
Series B . . . .
Series C .
5
Series D .
5
P u b l i c - i m p r o v e m e n t loans, 1923-19431966:
Series A
_.
5
Series B . . .
5
Series C
5
Series D
5
Series E
5
Series F
5
Refunding loans, 1914-1923-1953:
4
Series J
4
Series L .
4
Series 0
_.
4
Series Q
4
Series S
4
Series V
Refunding m u n i c i p a l loans, 1915-19191936:
4
Series F
4
Series G
4
Series H
4
Series I
4
Series K
4
Series L . . .
4
Series M _
4
Series N
4
Series 0
4
Series P
4
Series Q
Refunding m u n i c i p a l loans, 1916^19184
1927, series G
High-school building loan, 1920^1930^
1946
43^
H o u s e construction of 1920-1930-1945,
series A
434
W o r k i n g m e n ' s house construction,
1920-1942, series A
434
M u n o z R i v e r a P a r k loans, 1924-19291938:
Series A
43^
Series B . . .
434
Series C
434
Series D
434
Series E . . .
43/2
Series F
Series G
Series H
434
Series I
43^
Series J
434

Redemption

T o t a l securities delivered




Amount

$146,000>

30, 000
70,000
46, 000

6
14
9

30,000'
70,00045,000'

6,000
55,000
25, 000

2
56
8

6,00055, 00025, 000

132, 000
20,000
61,000
60, 000

88
20
61
56

132,00020,000'
61,000'
60, 000

148, 000
49,000
316, 000
111, 000
133, 000
201,000

148
49
316
111
133
201

148, 000
49, OOO'
316, 000
111, O O
Oi
133, 000^
201, OOO'

$181,000

'^ 106
2
. 2
1
2
2

181,000'
2, 000
2,000
1, 000
2, 000
2,000

48,000

•

29

48
4
2
3
2
3
8
5

2,000
2,000
1,000
2,000
2,000

'•

4,000
2, 000
3,000
2,000
3,000
8,000
6,000
10,000
9,000
2,000

'V
145, 000

2
97

1,000

1

47, 000

47

25, 000

48,0004,000
2,000
3, 000'
2,000
3,000
8,000
5, OOO'
10, 000
9,000
2,000
145,000
1,000
47,000
25,000-

25
20
20
20
20
20
20
20
20
20
20

20,000
20,000
20,000
20,000
20,000
20, OOO
20,000'
20, 000
20,000
20,000

2,394, 000

4,465

6,959,000

20, 000
20, 000
20,000
20,000
20,000
20, 000
20, 000
20, 000
20, O O
C
20, 000
3, 565,000

3.66

Pieces

$146,000

T o t a l P o r t o Rico loans
District of C o l u m b i a funded loan of
1924.

Exchange,
transfer
. etc.

Total
Unissued
stock

$3, 503, 750

26, 000

6,022, 760

3,497

9, 661, 50O

3, 503, 760

6, 874, 000

8,416, 750

9,464

18,794,500

bO

EXHTBIT 22

05

PUBLIC DEBT TRANSACTIONS FROM JULY 1, 1924, TO JUNE 30, 1925, INCLUSIVE

T i t l e of issue

INTEREST-BEARING DEBT
I. Bonds:
A . P r e - w a r bonds—
2 per c e n t consols of 1 9 3 0 . .
4 p e r c e n t loan of 1925
2 p e r celit P a n a m a C a n a l loan of 1916-1936..2 p e r c e n t P a n a m a C a n a l loan of 191.8-1938.. _ .
3 p e r cent P a n a m a C a n a l loan of 1 9 6 1 . . 3 p e r c e n t conversion b o n d s of 1946-1947
234 per cent postal-savings b o n d s (hrst to t w e n t y - e i g h t h s e r i e s ) . .

R a t e of
interest

• cent
2
4
2
2
3
3

4
4M
4M

Total Treasury bonds..
P . Total bonds




724,050. 00
118, 489,900. 00
48, 954,180.00
25, 947,400. 00
49, 800,000. 00
28, 894,600. 00
11. 893,760.00

$102,120 00
102,120 00

Retired account
of r e d e m p t i o n

$117,061,150.00

117,051,150 00

3,05O 00

1,409, 999,000.00
7, 172,06O 00
530, 861,550 00
3, 492,150 00

2,050.00

Issued a n d
retired a c c o u n t
of conversion,
exchange, e t c .

Outstanding
J u n e 30, 1926

$59,009,250.00
29,245,850 00
6,178,480 00
3,499,020.00
11,41-7, 50O 00
3,044, IOO 00
262,440 00

$599, 724,050.00
1, 438,760 00
48,954,180 00
25,947,400. 00
49,800,000.00
28,894, 600.00
11,995,880 00

112,656,640 00

766, 754.760 00

28,400.00
111, 822,600.00
14,350. 00

2 10, 666, 50O 00
2 328,363, 600.00
366,843, 660.00
641,456, 600.00

21,091, 600 00
3,083,467,150 00
2,885,377, 350. 00
6, 324,481, 20O 00

14,377,807,400 00

111, 870,450.00

1, 516, 651,250 00

14,266,936,950 00

63,883, 50O 00
224,415,40O 00

763,948, 300. 00
1,047,088, 600. 00

4^
4

763,948,30000
1,047,088,500.00
763, 948,300.00

1,047,190,620 00

288, 298,900.00

1,047,088, 500.00

16,025,459,490 00

228,921, 600 00

to

o
o

103,612,700.00 1 1,409,995,950. 00
2 2,714,200.00
5, 243, 350 00
532,788, 20O 00
2 62,603, 200.00
3,492,150 00
401,80O 00

28, 446, OOO 00
.4
4M 3,076, 142,160 00
4M 2,997, 199,950 00
4M 6,324, 495,550.00

Total Liberty bonds..
C . T r e a s u r y bonds—
(a) 4 H per cent b o n d s of 1947-1952.
(6) 4 p e r ceiit b o n d s of 1944-1954

Issued account
of original
subscription

883,703,790.00

T o t a l pre-war b o n d s .
B. Liberty b o n d s F i r s t L i b e r t y loan of 1932-1947—
(a) F i r s t 334's
(6) F i r s t 4's
(c) F i r s t 43^'s
id) F i r s t second i } i ' s . _
Second L i b e r t y loan of 1927-1942(a) Second 4's
ib) Second 4 3 4 ' s . . .
T h i r d L i b e r t y loan of 1928
F o u r t h L i b e r t y loan of 1933-1938..

Outstanding
J u l ^ 1,1924

1,811,036,800. 00

1,917, 606, 790.00

16,843,728,510 00

>
a
Ui

II. Treasury notes:
Series B-1924
Series A-1925
..'.
Series B-1926
Series C-1925
Series A-1926
.
Series B-1926Series A-1927
.
.
Series B-1927
Adjusted service series 1930.
T o t a l T r e a s u r y notes

\

I I I . Certificates of i n d e b t e d n e s s :
Series T D - 1 9 2 4
Series T M - 1 9 2 5
Series T 1)2-1924.
Series TS-1925
.
Series T D - 1 9 2 5
Series TJ-1926
A d j u s t e d service series 1926
Specials . .
...

63^
4H
4H
43^
.
-

-_.
..

.•

^..

.

.

.

.

.

.
_

. .

43^
4^
4

.

T o t a l certificates of i n d e b t e d n e s s . .

. . . . . . .
.

2,423,684,800. 00

20, 824,000.00
69, 217, 500. 00
39,007, 500.00
216,792,500 00
70, 529, 50O 00
28,207, 000 00

103, 500. 00
309,000. 00
4,000. 00
229, 576,000. 00
179,462,000. 00
124, 247,000. 00
45,400, 000. 00

""39C369,'500."00"
219,462,000.00
124,247,000.00
4,600, 000. 00
60,000,000.00
1,141, 500,000 00 1,141, 500,000 00
1,926,578,600 00

2,154,990, 500. 00

444, 578,000.00

2 0 668, 282,390. 00

3,023,769,120 00

3, 745, 636, 70O 00

3,187,882,290.00

3 133.19
3 285. 24
65,427.15
3, 387, 081. 70
426, 770 40
3, 836,458. 95
846,114. 40
14, 679, 329. 60
6, 440 44

20, 583,966. 76
817,112. 31
80, 258. 90
6, 307, 290 20
1, 280,478. 40
10, 728, 719. 20
. 2,162,132. 65
• 8,639,798.85
261,395. 25

.

o
3-4
3-4
33^3/2
33^-43^
3-4
3-4
33^-43^
3M-43^
None.

6,490 00
22, 060. 00
6, 750. 00
401,176. 00
52, 925. 00
406, 425. 00
77, 675. 00
596,775. 00

i i , i86, 529. 32
1,810, 424. 85
96,933,452.25
15, 063, 033. 90
134,172, 088. 25
24.462, 754.15
98, 203, 221. 35
3,868, 587. 28

23, 247,204. 21

50,861,152. 52

1, 570,175. 00

3,047, 016, 324. 21

3, 796. 397,852. 52
2, 285, 742,760 00

3,189,452, 465. 00
408, 665,960 00

3,047, 016, 324. 21

1, 610, 655,102. 52

2, 780, 786, 515. 00

;>
CO

cl

20,232,204,901.35
21, 298, 660 00

18,674, 546,029. 66

H

385, 690, 091. 35

20,981, 586,429. 66
2,307,041,40O 00

20,210,906, 261. 35

1 Includes interim certificates.
2 First loan conversion transactions in the amount of $1,928,700 and second loan conversion transactions in the amount of $7,353,400 are included as retirements in the respective
4 per cent loans and also as issues on the respective 434 per cent loans.
8 Counter entry; deduct.




o

19,846,514, 810. 00

20, 684, 099. 96
12,003, 926. 87
1,825, 266. 60
99,853,660 75
15,906, 741. 90
141, 064, 348. 50
25, 778, 772. 40
92,163,690. 60
4,123, 542. 09

Ui

579,101, 500.00

413,304,039. 66

C . T o t a l T r e a s u r y (war) savings secm'ities

V I I . T o t a l interest-bearing d e b t J u n e 30,1925

825, 697, 500. 00

807, 513, 60O 00

I V . T o t a l interest-bearing b o n d s , notes,- a n d certificates of i n d e b t e d n e s s
J u l y 1,1924- -

v i . T o t a l i n t e r e s t - b e a r i n g d e b t J u l y 1,1924
D e d u c t d e b t w h i c h m a t u r e d d u r i n g year

1,361, 624, 600. 00
214,045, 500. 00
399,990,000 00
193,061, 50O 00
161, 793, 50O 00
40,000, 000. 00

50,000,000.00

214,149, 000 00
400, 299,000. 00
193, 066, 50O 00

.
.

V . T r e a s u r y (war) savings securities:
A . T r e a s u r y savings . c e r t i f i c a t e s Series 1920
.
Series 1921
Series 1921, issue of D e c . 15, 1921
Series 1922, issue of D e c . 15, 1921.Series 1922, issue of S e p t . 30, 1922
Series 1923, issue of S e p t . 30, 1922.
.
Series 1923, issue of D e c . 1, 1923.
Series of 1924, issue of D e c . 1, 1923 . . . . .
B . T h r i f t and Trea^'^'nry s a v i n g s t a m p s (unelRSsified vSalps)

432,000 00
1,948,300.00
299, 669,900. 00
17,063,100. 00
615, 677,900. 00
414,922,300. 00
356, 779,900. 00
668, 201,40O 00
50,000,000. 00

50,000,000.00
3,735,309,400.00

4H
4
2H
2%
3
3
4

388,967, 90O 00
30,000. 00

15,341,100 00
110,098, 200 00
76,422, 200. 00
124,931,800. 00
136,104, 500; 00
122,701,000.00
96, 241, 600. 00
143,857, 200.00

377,249,100.00
595,377, 600.00

377,681,100 00
697,325,90O 00
299, 659,900. 00
406, 031,000.00
615, 707,90O 00
414,922,30O 00
365,779,900.00
668,201,400 00

r>o

Public debt transactions from July 1, 1924, to June SO, 1926, inclusive—Continued
R a t e of
interest

T i t l e of issue

Outstanding
J u l y 1,1924

Issued account
of original
subscription

Retired account
of r e d e m p t i o n

Issued a n d
retired account
of conversion,
exchange, etc.

00
Outstanding
J u n e 30, 1925

MATURED DEBT ON WHICH INTEREST HAS CEASED
[. P r e - w a r b o n d s , e t c . :
Old d e b t m a t u r e d a t v a r i o u s d a t e s prior t o J a n . 1,1861
T e x a n i n d e m n i t y stocli
^
L o a n of 1847.
.•
L o a n of 1858
L o a n of F e b r u a r y , 1861
T r e a s u r y notes of 1861
Oregon w a r d e b t
L o a n of J u l y a n d A u g u s t , 1861_Seven-thirties of 1861..
.
F i v e - t w e n t i e s of 1862
T e m p o r a r y loan (1862-1868)
Certificates of i n d e b t e d n e s s (1862-1866)
L o a n of 1 8 6 3 - - 1-year notes of 1863
2-year notes of 1863
C o m p o u n d - i n t e r e s t notes (1864-1866)
Ten-forties of 1864
.o.
F i v e - t w e n t i e s of 1864..
Seven-thirties of 1864-65
1
F i v e - t w e n t i e s of 1865
Consols of 1866
Consols of 1867
Consols of 1868
.
.
3 p e r cent certificates (1867-1872).F u n d e d loan of 1881
_
.
.
F u n d e d loan of 1881 (continued) F u n d e d loan of 1891 (refunding)
F u n d e d loan of 1891 ( c o n t i n u e d ) . F u n d e d loan of 1907 (refunding)
Refunding certificates (1879).
L o a n of J u l y 12, 1882
L o a n of 1904
.
L o a n of 1908-1918
T o t a l pre-war b o n d s

T o t a l V i c t o r y notes

4,6,6
6,3M
6
5
46
6
6

-

6
6
6
3
6
2
4
4
3
6
3

.
_

.
.

. ,
.

.

3M
4M

$151,610 26
19, OOO 00
950 00
2, OOO 00
6, OOO 00
2,300. 00
2, 250. 00
16, 650 00
9, 300. 00
105, 260 00
2,850. 00
3, OOO 00
3,20O 00
30, IOO 00
26, 70O 00
167,420 00
18,360 00
13,950 00
120, OOO 00
19,850 00
65,360 00
84,06O 00
3,80O 00
6, OOO 00
22,40O 00
60 00
18,80O 00
1, OOO 00
360,1.00. 00
9, 610 00
20O 00
13,06O 00
267,060. 00

22,240 00

$151 610 26
19, OOO 00
950 00
2,000. 00
5, OOO 00
2, 30O 00
2, 250.00
15 650 00
9,300. 00
106, 250. 00
2,850. 00
3, OOO 00
3 200 00
30,070.00
26,700 00
4 157, 20O 00
18, 350 00
13,960 00
120, OOO 00
19,860 00
55, 350 00
84,05O 00
3,80O 00
6, OOO 00
22,40O 00
50.00
18,800. 00
1, 000.00
358, 750 00
9, 530 00
20O 00
13, 05O 00
244,820 00

1, 649, 20O 26

___

1

I I . Victory notes:
Victory 3 ^ ' s
V i c t o r y 4M's




P e r cent
Various.
5
6
5
6

23,920 00

1, 625, 280 26

146,850 00
13,663,700.00

106, 550 00
6,836,30O 00

40,30O 00
6, 728,40O 00

13,710,650 00

6,941,850 00

6, 768, 70O 00

$30 00
220.00

]V350 00
8 0 00

w
o
O

"^
H

>
o
Ul

I I I . T r e a s u r y notes:
Series A-1924..t V . Certificates of indebtedness:
A. Tax issuesSeri es J a n . 2, 1 9 1 8 . . .
Seriies A u g . 20, 1918-.
Seri e s T - 8 Seri e s T - l O .
Seri es TJ-1920Seri es TD-1920
Seri e s T M - 1 9 2 1
Ser:i e s T M 2 - 1 9 2 1 . . . .
Ser iesTM4-1921
Ser: ies TJ-1921
Seri e s T S - 1 9 2 1
Seri esTS2-1921
Seri .esTD-1921
Seri e s T M - 1 9 2 2
Ser: e s T M 2 - 1 9 2 2
Seri es TJ-1922
Seri e s T S - 1 9 2 2
Seri esTS2-1922
Seri es TD-1922
Seri e s T M - 1 9 2 3
Ser e s T J - 1 9 2 3
Seri e s T S - 1 9 2 3
Seri esTS2-1923
Seri e s T D - 1 9 2 3
Ser: e s T M - 1 9 2 4
Seri es TD2-1923
Seri e s T M 2 - 1 9 2 4 . . . .
Ser: ies TJ-1924
, Loan
Ser; ies M a r . 20,1918.
SeriLes4-A
Ser i e s 4 - B
Seri e s 4 - C
Seri e s 4 - D
Seri es G-1920
Seri H-1920
Seri es D - 1 9 2 1 . .
Seri es E-1921_.
Seri es C-1921
Seri es F-1921
Seri es G-1921
Seri e s H - 1 9 2 1
Seri es A-1922
Seri es B-1922
C . T o t a l certificates of i n d e b t e d n e s s . .
• Interest compounded.




12,122, 50O 00

4
4

4H|

m
m
5M

5H\

6
6
53^!
6
5H\
5K
63^
5H\

m
m
M\
m
4M
4

m\
4

43^1
4

43^1
43^
43^
43^
43^

m
m
m

11, 767, 200. 00

355,30O 00

2,000. 00
21, 50O 00
2,000. 00
11, OOO 00
3, OOO 00
7,000. 00
1,000. 00
6, 500. 00
1, 600. 00
4, 500. 00
12, 600. 00
1, OOO 00
26, OOO 00
8,000. 00
8,000. 00
13, OOO 00
13, OOO 00
13, 500. 00
17, 50O 00
32,000 00
5, 60O 00
66,000. 00
82, 600. 00
26, 500. 00
921,000. 00
6,000. 00
505,000. 00
977, OOO 00

2,000. 00
1,000. 00
2,000 00

20,500. 00

4 , 5 0 0 00
600. 00

11, OOO 00
3, OOO 00
2,500. 00
500.00
6, 600. 00

1, 60O 00
2, 500. 00
18, 60O 00
1,50O 00
5, 50O 00
2,000. 00
4, 600. 00
5, 500.00
25, 500. 00
2, 500. 00
63, OOO 00
82, 500. 00
12, OOO 00
846,000. 00
4,000. 00
482, OOO 00
974, 500. 00

4, 500. 00
10,000. 00
1,000. 00
7, 500. 00
6,600. 00
8, 000 00
7,500. 00
11, OOO 00
9,000. 00
12,000 00
6, 500. 00
3,000. 00
2,000 00.

o
w

o
H

14, 500. 00
76, OOO 00
2,000. 00
23, OOO 00
^ 2,500.00

500. 00
500. 00
1,000. 00
6, 600.00
3, 500.00
1, OOO 00
500.00
1, OOO 00
1, 500. 00
13, OOO 00
6, 50O 00
3, OOO 00
1,600 00
15, OOO 00
12,000. 00

9, 600.00
2,000. 00

2,869,000 00

2, 664,000.00

P>
Ui

1, 50O 00
10, 500. 00
6, 500. 00
3, OOO 00
1, 500. 00
5, 500. 00
10, OOO 00
295, 000. 00

5, OOO 00

60O00
600. 00
1, OOO 00
500. 00
3, 500. 00
1,000 00

w

60O 00
1,000. 00
2, 500.00
1, COO 00

CO

Public debt transactions from July 1, 1924, to June 30, 1925, inclusive—Continued

fcO
to

o
R a t e of
interest

T i t l e of issue

Outstanding
J u l y 1,1924

Retired account
of r e d e m p t i o n

Issued a n d
retired a c c o u n t
of conversion,
exchange, e t c .

Outstanding
J u n e 30,1926

. P e r cent

V. T r e a s u r y (war) savings securities:
Series 1918
Series 1919

.

.

3 $642. 60
108. 77

.

3 $642.60
108. 77

3 533. 83

T o t a l T r e a s u r y (war) savings securities
$30,241, 260 26
2,307,041,400 00

V I . T o t a l m a t u r e d d e b t J u l y 1, 1924
A d d interest-bearing d e b t w h i c h m a t u r e d d u r i n g year
V I I . T o t a l m a t u r e d d e b t J u n e 30, 1926

Issued a c c o u n t
of original
subscription

2, 337,282,660. 26

. .

3 633.83

3 533. 83

21,296,436.17
2,285, 742, 760 00

$408,665,960. 00

$8,944, 280. 26
21,298,660. 00

2,307,039,186.17

408,665,950 00

30, 242,930. 26

"-^
3 633. 83

DEBT B E A R I N G N O I N T E R E S T

I.
II
III,
IV

w
..

V. T o t a l d e b t bearing n o interest
.

_ .

193, 701,990 37
53, 012. 50
43,641, 639. 00
1,996, 205. 04

6 105,447,372. 50

68,974,392. 00
774. 41

193,060,03O 49
63,012. 50
80,014,619. 50
1,995,430. 63

239,292, 746. 91

U n i t e d States notes (less gold reserve)
Old d e m a n d notes
N a t i o n a l a n d Federa,l reserve b a n k notes
Fractional c u r r e n c y

T o t a l gross d e b t

6 641,969. 88

105,447,372. 50

69,617,126. 29

275,122,993.12

21,251,120,426. 83

3,152,463,162. 88

3,887,311,414.98

3,189,452,465. 00

3 Counter entry; deduct.
« Represents amounts of franchise tax receipts and net earnings from Federal intermediate credit banks which were used to supplement the gold reserve
0 Represents deposits account of retirements.




s

20, 516, 272,174. 73

o

w
>^

>
o
Ui

EXHIBIT

23

PUBLIC DEBT RETIREMENTS CHARGEABLE AGAINST ORDINARY RECEIPTS
F a c e a m o u n t retired
Principal
amount paid
Coupon
P u r c h a s e s a n d r e d e m p t i o n s for account of c u m u l a t i v e sinking f u n d :
C u m u l a t i v e t o t a l t o J u n e 30, 1924..

$1,087,874,500 00

Accrued
interest paid

Total

$29,277,900.00 $1,117,152,400 00 $1,108,403,252. 39

$13,551,161. 57
Ui

Fiscal y e a r 1925—
PurchasesThird 4K's.
RedemptionsTreasury n o t e s Series B-1924
Series A-1925.
.Series C-1925

18,374, OOO 00

18,374,000 00

18,732,336.01

100,000,000 00
100,000,000.00
87,934,400 00

100,000,000.00
100,000,000 00
87,934,400.00

100,000,000. oa
100,000,000.00
87,934,400 00

306,308,400 00

T o t a l fiscalyear

306,308,400 00

306,666,736.01

272,431.73

272,431.73

T o t a l fiscal year
C u m u l a t i v e t o t a l t o J u n e 30,1925

29,277,900.00

1,423,460,800.00

1,415,069,988.40

13,823, 693. 30

241,403,950 00

..
. .

o

K!

1,394,182,900.00

C u m u l a t i v e t o t a l t o J u n e 30,1925 .
P u r c h a s e s a n d r e d e m p t i o n s from r e p a y m e n t s of principal b y foreign g o v e r n m e n t s :
Cumulative total to J u n e 30,1924...
Fiscal y e a r 1 9 2 5 ^
RedemptionsTreasury n o t e s Series B-1924
Series A-1925

Registered

48,614,000 00

• 290,017,950 00

281,038,934.06

2,841,971. 43

208, 600.00
177, 60O 00

208,600.00
177,50O 00

o

208,600.00
177,600.00

t
i

386, IOO 00

386,100.00
241,790,050.00

48,614,000 00

w

886,100.00

290,404,050 00

281,425,034.06

2,841,971.43

139,000,985. 66

362,287. 59

P u r c h a s e s a n d r e d e m p t i o n s from franchise tax receipts:
C u m u l a t i v e t o t a l t o J u n e 30,1924..

139, 664,034.48

139, 564,034.48

Fiscal y e a r 1925—
R e c e i p t s used t o s u p p l e m e n t t h e gold reserve 1

113,646.68

113,646. 68

113,646. 58

113,646. 68

113, 646. 58

113,646. 68

139, 677,681.06

139, 677,681.06

139,114,632. 24

T o t a l fiscal y e a r . .
C u m u l a t i v e t o t a l t o J u n e 30,1925

» Liability on account of outstanding United States notes was reduced by the amount by which the gold reserve was supplemented.




362, 287. 59

to
to

to
to
to

Public debt retirements chargeable against ordinary receipts—^^Continued
F a c e a m o u n t retired
Principal
amount paid
Registered

Coupon
R e d e m p t i o n s from n e t earnings derived b y t h e U n i t e d S t a t e s from F e d e r a l i n t e r m e d i a t e
credit b a n k s :
Fiscal year 1 9 2 5 Treasury n o t e s Series B-1924
N e t earnings used to s u p p l e m e n t t h e gold reserve ^
.
T o t a l fiscal y e a r

,. .

$152,200.00
628,313.30

$162,20O 00
528,313.30

680,513. 30

680, 513. 30

680,513. 30

.-

$152,200 00
528,313.30
680,513. 30

_

C n m n l a t i v e total t o .June 30, 192.'S._ .

Accrued
interest p a i d

Total

680,613. 30

680, 513. 30

o
o

• F a c e a m o u n t retired
Accrued
interest
Coupon

C u m u l a t i v e t o t a l to J u n e 3 0 , 1 9 2 6 . .




$22, 964, 650 00

695,000. 00
1, 689, OOO 00
20, 439,000. 00

....

._

-

-.

.
. . .

...

'.

s
H

$80,431.92

695, OOO 00
1, 689,000. 00
20,439,000 00

22,823,000. 00

...

R e d e m p t i o n of b o n d s , etc., received as interest p a y m e n t s on obligations of foreign g o v e r n m e n t s :
C u m u l a t i v e total to .Tune 30, 1924
. ,
Fiscal y e a r 1925—
Certificates of i n d e b t e d n e s s Series TD-1924
Series TD2-1924
Series TS-1926
T o t a l fiscal year

$22,964, 550 00

..

Total

,

R e d e m p t i o n of b o n d s , etc., received as r e p a y m e n t s of principal b y foreign g o v e r n m e n t s :
C u m u l a t i v e t o t a l t o J u n e 30, 1924
... .
Fiscal y e a r 1925—
Certificates of i n d e b t e d n e s s Series TD-1924
Series TD2-1924
Series TS-1926
T o t a l fiscal year

Registered

22,823, OOO 00

141, 294. 46
141, 294. 46

45, 787, 550. 00

46, 787, 650 00

221,726. 38

156, 666,850 00

166, 666,850 00

488,419. 20

2,075,000. 00
5, 041, OOO 00
128,854,50O 00

2,075, 000. 00
6,041,000. 00
128,854, 50O 00

888,192.09

136,970, 50O 00

135, 979, 500. 00

888,192. 09

Ui

Fiscal year 1926—
T h i r d 4>^'s
F o u r t h 4M's

.

$7,684,150 00

66,133, 60O 00

2 640, 005. 20

1, 60O 00
1,06O 00

..1

45,000.00

46, 500. 00
1,06O 00

366. 52
5.39

2, 550. 00
.,

Gifts, forfeitures, a n d miscellaneous:
C u m u l a t i v e total t o J u n e 30, 1924

.

Fiscal year 1925—
GiftsT h i r d 4M's
.
.
T r e a s u r y notes, series A-1926
.__
.
.
T r e a s u r y savings certificates, issue of D e c 15, 1921
Thrift s t a m p s
.

-

e

47, 660 00

370 91

7,729,150. 00

66,181,05O 00

640,376.11

1,013, 460 00

.-

45,000. 00

58,461,900 00

T o t a l fiscalyear
C u m u l a t i v e total t o J u n e 30, 1925

208,941.10

1,222, 391.10

.

86.20
18.75
85. 20

120, OOO 00
30, OOO 00
85.20
18. 75
150,103.95

.

- -

...

3,0.50. 00
2,050. 00
12,900 00.
2, 650. 00
13,30O 00
3,30O 00

3, 05O 00
2, 050. 00
12.900. 00
2, 550 00
13, 300. 00
3,300.00

37,150 00

_
-

37,150 00

16, 600. 00
5,150 00
500.00

T o t a l fiscal y e a r .

n.

3
^
Ui

21,150 00

208,318. 76

85.20

208,403. 95

1, 221,768. 75

• ^ 209,026.30

1,430,795. 05

} Liability on account of outstanding United States notes was reduced by the am.ount by which the gold reserve was supplemented.
2 Includes $11,439.49 not previously reported, representing interest paid on registered securities by registered interest checks issued by the Division of Loans and Currency.




i

15, 500. 00
6,160 00
500.00

21,150 00

C u m u l a t i v e total t o J u n e 30, 1925

m
Q

120,000.00
30,000. 00

150,018.75

MiscellaneousSecond i}4's
T h i r d 4M's
Victory 4 ^ ' s

1,376,611. 2&

68,449, 350. 00

_

ForfeituresFirst 314's
First 4K's
Second 43^'s
Third 4K's .
Fourth 4 M ' s . . .
Victory 4 ^ ' s

292,637; 350 OOJ

29^, 637,350 00

C u m u l a t i v e total t o J u n e 30,1925
R e c e i p t s of L i b e r t y b o n d s . V i c t o r y notes, T r e a s u r y b o n d s , a n d notes for e s t a t e or inheritance taxes:
C u m u l a t i v e total t o J u n e 30, 1924

to
to
CO

224

REPORT ON THE FINANCES
EXHIBIT

24

UNITED STATES BONDS, NOTES, AND CERTIFICATES OF INDEBTEDNESS BEARING MATURITY DATES SUBSEQUENT TO APRIL 1,
1917, OUTSTANDING AND ON HAND JUNE 30, 1925, SHOWING
f AN ACCOUNTING FOR SECURITIES DELIVERED BY THE BUREAU
O F ENGRAVING AND PRINTING AND SECURITIES ISSUED AND
RETIRED FROM DATE OF INCEPTION
Detail
I . | D e l i v e r e d b y B u r e a u of E n g r a v i n g a n d P r i n t i n g to t h e Division of
Loans and Currency:
Bonds—
3 per cent loan of 1908-1918
4 per cent loan of 1925
2 per cent consols of 1930
•....
2 per cent P a n a m a C a n a l loan of 1916-1936
2 per cent P a n a m a C a n a l loan of 1918-1938
3 per cent P a n a m a C a n a l loan of 1961.
3 per cent conversion b o n d s of 1946-47
2 H per cent, postal savings b o n d s (first to t w e n t y - e i g h t h series).
F i r s t L i b e r t y loan—
3 H per cent full-paid i n t e r i m certificates
3 H per cent coupon b o n d s
" • V/i per cent registered b o n d s
C o n v e r t e d 4 per cent t e m p o r a r y coupon b o n d s
C o n v e r t e d 4 per cent p e r m a n e n t coupon b o n d s
C o n v e r t e d 4 per cent registered b o n d s
C o n v e r t e d 4>i per cent t e m p o r a r y coupon b o n d s
C o n v e r t e d 4K per cent p e r m a n e n t coupon b o n d s
C o n v e r t e d 43^ per cent registered b o n d s
Second converted 4i^ per cent t e m p o r a r y coupon b o n d s .
Second converted 43^ per cent p e r m a n e n t coupon bonds.
Second converted 4J^ per cent registered b o n d s
Second L i b e r t y loan—

4 per cent temporary coupon bonds
4 per cent permanent coupon bonds
4 per cent registered bonds
Converted 4yi per cent temporary coupon bonds
Converted 43^ per cent permanent coupon bonds
Converted 4J^ per cent registered bonds
Third Liberty loan—
434 per cent temporary coupon bonds
434 per cent permanent coupon bonds
434 per cent registered bonds
Fourth Liberty loan—
43^ per cent temporary coupon bonds
434 per cent permanent coupon bonds
4 ^ per cent registered bonds
Treasury bonds of 1947-1952—
434 per cent coupon bonds
434 per cent registered bonds
Treasury bonds of 1944-1964—
4 per cent coupon bonds
^
4 per cent registered bonds
'
NotesVictory Liberty loan—
4 ^ per cent coupon n(5tes
4 ^ per cent registered notes
3 ^ per cent coupon notes
3M per cent registered notes..
Treasury n o t e s Series A-1924
Series B-1924.
Series A-1925
Series B-1925
Series C-1925
Series A-1926
Series B-1926
Series A-1927
Series B-1927
Adjusted service series.
Certificates of indebtednessLoan issues
. Tax issues
Specials—
2 per cent registered
Pittman Act
Spanish pesetas
Short term
Adjusted service series.
Total




702, 498
298,050
372,890
49,602
28,105
190, 846
82, 000
180, 259

$730, 776, 820. 00
860,157, 50O 00
2, 596, 272, 650 00
183, 742, 50O 00
126,880, 40O 00
220, 277,900. 00
115, 783, 70O 00
33, 792, 320. 00

6, 676,960
5, 662, 000
634, 325
4, 720, 000
471, 260
626, 000
5, 675, 000
2,964, 800
461, 235
130, 200
18, 200
47, 630

4,130, 200, OOO 00
1,879, 250, OOO'OO
1, 448, 750,000. 00
820, 000, 000. 00
91, 260, OOO 00
492, 700, OOO 00
950, 000, 000. 00
978, 700, OOO 00
1, 001, 087, 60O 00
39, 200, 000. 00
9, 763,760 00
38, 565, OOO 00

15,968,000
1,166, 500
1, 415, 000
13, 662,000
9, 287,260
1, 378, 840

4, 630, 260,000.00
240,000,000.00
1, 750, 000, OOO 00
3,776,600,000 00
4, 469, 490, 000. 00
1, 817, 647, OOO 00

25, 368, 000
18,942, 000
2, 229, 817

4, 704,160, OOO 00
5, 549, 426, 000.00
1, 856,862, 70O 00

35, 883, 000
18, 394,425
3, 772, 640

7, 896, 000, 000. 00
8,172, 060, OOO 00
3, 001, 320, OOO 00

681,900
76, 000
513, 500
76, 500

"...

1, 256, 600, OOO 00
, 369,000, OOO 00
1,612, 600, OOO 00
236,000, OOO 00

22, 237, 200
1, 674, 800
1,490,800
76, 060
392,100
233, 700
366,900
226, 600
320,600
296,000
196, 000
319,000
511, 000
500

5,926,100, OOO
1,312,820, OOO
2,327,400, OOO
777,280, OOO

00
00
00
00

745, 000,000.00
732, 000, OOO 00
1, 235, 000, OOO 00
. 776, 500, OOO 00
1,067, 500,000. 00
1, 266, 000, 000; 00
1, 028, 600, OOO 00
987, 500, OOO 00
1, 423, 000, ooo 00
60, 000, 000. 00

6, 009, 627 32,959,466, OOO 00
4, 501, 300 26,278,500,000 00
500
1,000
2,000
2,049
1,600

125, 000, OOO 00
451,180, OOO 00
112, 091, 70O 00
26, 034,946,108. 53
60, 000, 000.00

216,324,048

172,735,626,548.53

225

SECEETAEY OF T H E TEEASUEY

United States bonds, notes, and certificates of indebtedness bearing maturity dates
subsequent to April 1, 1917, outstanding and on hand June 30, 1925, showing
an accounting for securities delivered by the Bureau of Engraving and Printing
and securities issued and retired from date of mcepiion—Continued
Detail

Pieces

I. Delivered b y B u r e a u of E n g r a v i n g a n d P r i n t i n g t o t h e D i v i s i o n of
Loans a n d Currency—Continued.
Less unissued stocks—
1. O n h a n d J u n e 30, 1925—
(a) W i t h Division of L o a n s a n d C u r r e n c y
ib) W i t h F e d e r a l reserve b a n k s ^
Total. .
.
2. Excess stocks delivered t o register for retirement—
(a) B y D i v i s i o n of L o a n s a n d C u r r e n c y
(6) B y F e d e r a l reserve b a n k s
Total.-..

12,054,06i9
614,411

Amount

12, 668,480

•.

Total deductions...:

$9,895, 876, 330.00
1,003,340,050. 00
10,899,216,380.00

21, 752,861
.8,609,689
30, 262, 560

21, 071, 360,280. 00
8, 679, 438,30O 00
29, 750, 798, 580. 00

42,931, 030

40,650,014.960 00

T o t a l t o be accounted foi: (see I t e m s I I a n d V ) . 173,393,018' 132,086, 611,688. 63
I I . Issues to t h e public:.
1. tFpon original subscriptions against cash r e c e i v e d Co) P r e - w a r loans
ib) F i r s t L i b e r t y loan
(c) Second L i b e r t y loan
id) T h i r d L i b e r t y loan
(e) F o u r t h L i b e r t y l o a n .
.
(/) Victory L i b e r t y loan
ig) T r e a s u r y b o n d s of 1947-1952
(/i) T r e a s u r y b o n d s of 1944-1954 .
0') T r e a s u r y ' n o t e s
0") Certificates of i n d e b t e d n e s s
Total
2. U p o n exchange, conversion, etc., for securities of equal p a r value
retired—
(a) O n exchange of denominations.(exclusive of t u r n o v e r ) . . .
ib) O n exchange of coupon foi* riegistered
(c) O n exchange of registered for coupon
(d) O n exchange of t e m p o r a r y for p e r m a n e n t
ie) O n exchange of interirh certificates
(/) O n conversion (does n o t include 4 per cent b o n d s delivered against i n t e r i m s )
ig) O n transfer of ownership
ih) O n mixed cases, e t c
it) O n account of m u t i l a t i o n s (includes coupon error)
Total..........
3. U p o n adjudicated claims for r e p l a c e m e n t

875,528
1,182,880,570 00
2 4, 629, 982
1,989,456,560.00
14,938,073
3,807,865, OOO 00
24,406,982 . 4,175,660, 05O 00
33, 024,445
6, 964, 581, IOO 00
17,498,172
4,496,373, OOO 00
414,824
763,962,300. 00
258, 690
1,047,088, 600.00
1,320, 015
4, 297, 744,400.00
5,891, 779
62, 245, 692,808. 63
103, 268,490

90,970, 293, 278. 63

3 7,507,654
3, 296, 544
2,406,962
32,726,382
< 7, 503,152

12,873, 212,750. 00
4,337, 244,06O 00
2,163,451, 20O 00
10,393,423,450.00
1,985,166,960 00

15, 236,128
1,315,286
91,033
6,878
70, 089,019

5, 290,446, 550. 00
3,473, 299,120. 00
692, 633, 590 00
. 2,161, 250 00
41,101,037, 920 00

8 45, 609

14, 280, 390. 00

T o t a l issues t o t h e p u b l i c .
.
173,393, 018
I I I . Received for r e t i r e m e n t :
1. A c c o u n t r e d e m p t i o n —
(a) B o n d p u r c h a s e fund
1, 730, 091
ib) C u m u l a t i v e sinking fund
. . .
661, 297
(c) R e p a y m e n t s of principal b y foreign g o v e r n m e n t s
177, 795
id) I n t e r e s t p a y m e n t s o n obligations,of foreign g o v e r n m e n t s .
31,837
ie) Proceeds of sales of T r e a s u r y notes . . : .
30, 602
( 0 Proceeds in p a y m e n t for T r e a s u r y b o n d s
249,809
ig) Proceeds in p a y m e n t for T r e a s u r y notes
1, 000,494
Qi) Proceeds in p a y m e n t for certificates of i n d e b t e d n e s s
10,330
10
(0 N e t earnings Federal i n t e r m e d i a t e credit b a n k s
40, 7i6
(j) F r a n c h i s e tax r e c e i p t s .
(fe) Federal estate taxes
..
51,029
il) I n c o m e tax . . i
j
1,010
(m) F r o m s u r p l u s m o n e y in t h e T r e a s u r y
.
47,618
in) Gifts, forfeitures, a n d miscellaneous
.
4 546
(o) A t m a t u r i t y , call or u p o n option
12, 570; 928
Total
16, 608,112

132 085 611 588. 53

1,965,791,450 00
1,423,460,800.00
336,191, 60O 00
292,637,360 00
140,472,750. 00
677,067,750. 00
1, 345,122,70O 00
13, 504,450 00
162,200. 00
' 138,429,800.00
66.181,050. 00
1,607,300 00
128,466,950 00
1,430, 660 00
64, 685, 597, 848. 53
71,116,114,648. 63

1 Includes Treasury booth and specimens on hand in executive offices.
2 Includes number of pieces of full-paid interim certificates amounting to $496,962,650 issued account
denominational exchange; information as to segregation of pieces by transactions being unavailable.
3 Does not include number of pieces of full-paid interim certificates amounting to $496,962,660. (See
note 2.)
' } Includes number of pieces of 4 per cent coupon bonds amounting to $4,350 issued upon adjudicated claims
for replacement in lieu of interim certificates lost or destroyed; information as to segregation of pieces being
unavailable.
» Does not include, number of pieces of 4 per cent coupon bonds amounting to $4,360 in lieu of interim
certificates lost or destroyed. (See note 4.)

60501—FI 1925t



le5

226

REPORT ON T H E FINANCES

United States bonds, notes, and certificates of indebtedness bearing maturity dates
subsequent to April 1, 1917, outstanding and on hand J u n e 30, 1925, showing
an accounting for securities delivered by the Bureau of Engraving and Printing
and securities issued and retired from date of inception—Continued
Detail

Pieces

Amount

III. Received for retirement—Continued.
2. Account exchange, conversion, etc., for securities of equal par
value issued—
(a) On exchange of denominations (exclusive of turnover)... 6 56,043,927 $12,873, 212, 760 00
ib) On exchange of coupon for registered
4,337,244,06O 00
7, 204,433
(c) On exchange of registered for coupon
2,153, 451,20O 00
3,072, 526
id) On exchange of temporary for permanent
10 393,423,450.00
41, 385,668
ie) On exchange of interim certificates
7 4, 628, 254 1,986,165,950.00
(/) On conversion (does not include interims surrendered for
5, 290, 446,550. 00
4 per cent bonds) .
17,166,993
ig) On transfer of ownership
3, 473, 299,120. 00
1,819, 283
592, 633, 590. 00
ill) On mixed cases, etc
131, 663
6,240
2,161, 250 00
ii) On account of mutilations (includes coupon error)
Total..

131, 458,877

3. Account loss or destruction (covered by insurance or bonds of
indemnity)
Total retirements

32,425

41,101,037,920 00
14, 280, 390. 00

148,099, 414 112, 231,432j958.63

IV. Outstanding June 30, 1926:
1. Matured—
(a) 3 per cent loan of 1908-1918
(6) 4 per cent loan of 1926 .
ic) Victory Liberty loan 4 ^ per cent notes
id) Victory Liberty loan Z% per cent notes.
ie) Treasury notes
(/) Certificates of indebtedness

1,042
1,056
71,366
92
26,991 •
597

Total matured

V
2. Interest-bearing—
(a) First Liberty loan 3J^ per cent full-paid interim certifi(6) Pre-war bonds
cates..
-.^
..
(c) First Liberty loan 33^ per cent bonds
(d) First Liberty loan 4 per cent bonds
ie) First liberty loan 43^ per cent bond^
(/) First liberty loan second converted 43^ per cent bonds
ig) Second Liberty loan 4 per cent bonds
Qi) Second Liberty loan 434 per cent bonds
(0 Third Liberty loan 434 per cent bonds
(j) Fourth Liberty loan 434 per cent- bonds
(fc) Treasury bonds of 1947-1952
il) Treasury bonds of 1944-1954..
(m) Treasury notes
in) Certificates of indebtedness

244,820. 00
1,438, 750. 00
6, 728, 400. 00
40, 300. 00
19, 798, 700. 00
711,500 00

101,144

28,962,470.00

192,146

765,316,010. 00

164, 760.00
1,307
1, 679, 427
1,409,841,200 00
5, 243,350 00
32, 205
632, 788,200. 00
1, 271,469
3,492,160 00
6,861
21,091,600 00
132, 271
3,083,4G7,150. 00
4,622,143
2,885, 377, 350. 00
6, 693,839
9,428,546 , 6,324,481,20O 00
763;948,'3bO.OO
280, 240
224, 551 . 1,047; 088, 5()0 00
2,404,241,400.00
671,822
55, 633
578,686,000. 00

Total interest-bearing

25,192,460

19, 825, 216,160 00

Total outstanding (as per public-debt statement)

25, 293,604

19,854,178,630 00

173,393,018

132,085,611, 588. 53

V. Total received for retirement, and outstanding (balances Items I and
II)

8 Does not include number of pieces of full-paid interim certificates amounting to $496,962,660. (See
note 7.)
•
*
' Includes number of pieces of full-paid interim certificates amounting to .$496,962,660 retired, account
denominational exchange; information as to segregation of pieces by transactions being unavailable.




EXHIBIT

25

I N T E R E S T - B E A R I N G U N I T E D STATES S E C U R I T I E S O U T S T A N D I N G J U N E 30, 1925, AND TRANSACTIONS I N S U C H
SECURITIES F R O M DATE OF INCEPTION, SHOWING RECONCILIATION OF ACCOUNT OF THE TREASURER
OF THE UNITED STATES W I T H SECURITY ACCOUNT
A c c o u n t w i t h Treasurer of the U n i t e d States

Security account

P r i n c i p a l account

Issues
T i t l e of loan, series, or issue

Receipts

Redemptions

$46, 526,100.00
5,677,80O 00
4,052,600.00
200, OOO 00

$699, 724.05O 00
48,954,180.00
26,947,400.00
49,800,000.00
28,894,50O 00
11,995,880 00

821,772,610 00

66,456,500.00

765,316, OIO 00

1, 989,466, 550 00

37,935,900.00

1,951,519,650 00

3,807,866,000 00

703,306,25000

3,104,558,75000

4,176,650,050.00
6,964, 681, IOO 00

1, 290, 272,70O 00
640,099,90000

2,885,377,350.00
6,324,481, 20O 00

763,962,300 00
1, 047, 088,50O 00

14, OOO 00

763,948,300.00
1,047,088,60O 00

18, 748, 602,50O 00

2,671,628,760 00 16,076,973,750.00




Original
subscriptions

Outstanding

$646, 260,150. 00
64,631,980. 00
30,000,000. 00
60,000, OOO 00
28,894,500.00
11,995,880.00

Ul

Pre-war b o n d s :
2 per cent consols of 1930
2 per cent P a n a m a C a n a l loan of 1916-1936
2 per cent P a n a m a C a n a l loan of 1918-1938
3 per cent P a n a m a C a n a l loan of 1961
3 per cent conversion b o n d s of 1946-47
23^ per cent postal savings b o n d s (first to t w e n t y - e i g h t h series).
T o t a l pre-war b o n d s .
2. L i b e r t y b o n d s a n d T r e a s u r y b o n d s :
F i r s t L i b e r t y loan of 1932-1947—
(a) F i r s t 33^'s
(6) F i r s t 4's
(c) F i r s t 434's
id) F i r s t second 434's
Second L i b e r t y loan of 1927-1942—
(a) Second 4'S-.
(6) Second 4M's
T h i r d L i b e r t y loan of 1 9 2 8 . . .
F o u r t h L i b e r t y loan of 1933-1938...
T r e a s u r y bonds—
(a) 434 per cent of 1947-1952....
(6) 4 per cent of 1944-1954
Total Liberty bonds and Treasury b o n d s .

E x c h a n g e s , etc.,
for securities of
e q u a l par value
retired

O
T o t a l issued

$646,250,160 00 $1,889,517,050 00 $2,536,767,200.00
166,667,940.00
112,035,960 00
54,631,980. 00
99,398,760.00
69,398,760.00
30,000,000 00
191,499,60O 00
141,499,500.00
60,000,000. 00
62, 775,400.00
23, 880,900 oo:
28,894, 50O 00
22,626, 280 00
10,630,400.00
11,995,880.00
821, 772,510 00

2,246,962, 570. 00

3, 068, 735,08O 00

1,989,466, 560 00

2,989,939, 260.00
643, 735,450 00
1, 265,401,750 00
8, 777,30O 00

4,979,394,800.00
643, 735,460.00
1,265,401,750 00
8,777,300.00

3,807,865,000 00

00
00
00
op

4,349,361,750 00
8,460,398, 500.00
10,888,131,750 00
17,965,629,80O 00

763,962,30O 00
1,047,088, 50O 00

380,300,200. 00
224,416,40O 00

1,144, 262,60O 00
1, 271, 503,900 00

18,748,602,500 00 32,227,885,000 00

.50,976,4^7,500.00

641,486, 760
8,460,398,500
4,175, 650,05O 00 6, 712,481,70O
6,964,681,100. 00 11,000,948,70O

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i

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Interest-bearing United States securities outstanding J u n e 30, 1925, and transactions, in such securities from date of inception, showing reconciliation of account of the Treasurer of the United States with security account—Continued

-00

Secm-ity account

A c c o u n t w i t h T r e a s u r e r of t h e U n i t e d States

Issues

P r i n c i p a l account
T i t l e of loan, series, or issue
Receipts

Redemptions

$336,141,30O 00
617,769,70O 00
486,940, IOO 00
366,981, 50O 00
668, 201,40O 00
50,000,000 00

.$36,481,400 00
2,091,800 00
72,017,800. 00
11, 201,600 00

$299,659,900.00
615,677,90O 00
414,922,30O 00
355,779,90O 00
668,201,400 00
60,000,000. 00

2, 525,034, OOO 00

120,792,600. 00

2,404, 241,40O 00

391,369, 60O 00
219,462, OOO 00
124, 247, OOO 00
50,000,000. 00

161,793,60O 00
40,000, OOO 00
4,600, OOO 00

229,676, OOO 00
179,462, OOO 00
124,247,000 00
45,400, OOO 00

785,078, 600. 00

206,393, 60O 00

578,686,000.00

22,691,715. 73
2,378,390 35
123, 966, 576. 40
20, 266,328. 65
166,887,896. 25
28,413,620 85
109,707,052.40
8,007,595. 28

11,505,186. 41
567,965. 50
27,033,124.15
6, 212,294. 65
31, 715,807.00
3,950,866. 70
11,503,831.06
4,139,008. 00

11,186, 520 32
1,810,424. 86
96,933,452. 25
15,053,033. 90
134,172,088. 25
24,462,754.15
98,203, 221. 35
3,868,687. 28

96, 628,083. 46

481,318,174. 81
23,361,805,684.81

385,690,091. 35

3,160,899,433.46 20,210,906,251.35




Original
subscriptions

Outstanding

3. T r e a s u r y notes:
Series B-1925.
Series A-1926
Series B-1926
Series A-1927
Series B-1927
A d j u s t e d service series

_

T o t a l certificates of indebtedness

T o t a l T r e a s u r y (war) savings securities

$219, 444, 500. 00
364,943, 20O 00
412,158, 20O 00
305, 388, IOO 00
396,698,30O 00

$654,685,80O 00
982,712,900 00
899,098,300 00
672,369,60O 00
1, 064,899, 700.00
50,000,000. 00

2,625,034,000.00

6. T r e a s u r y (war) savings securities:
T r e a s u r y savings c e r t i f i c a t e s Series 1921
:
Series 1921, issue D e c . 16, 1921
Series 1922, issue Dec. 16, 1921
,
Series 1922, issue Sept. 30, 1922
,
Series 1923, issue Sept, 30, 1922
,
Series 1923, issue D e c . 1, 1923.
,
Series 1924, issue D e c . 1, 1923
T h r i f t a n d T r e a s u r y savings s t a m p s , unclassified sales, etc.

T o t a l to J u n e 30, 1926..

T o t a l issued

$335,141,300.00
617, 769, 700.00
486, 940, IOO 00
366,981, 60O 00
668,201,400. 00
50,000,000.00

Total Treasury notes..
4. Certificates of i n d e b t e d n e s s :
Series TS-1926
Series TD-1925
Series TJ-1926
A d j u s t e d service series

Exchanges, etc.,
for securities of
equal par v a l u e
retired

1,698,632,30O 00

4,223,666,300 00

391,369,60O 00
219,462,000.00
124, 247, OOO 00
50,000,000.00

216,792, 600. 00
70, 629, 500. 00
28,207,000. 00

608,162, OOO 00
289,991, 50O 00
162,454, OOO 00
50,000, OOO 00

786,078,500. 00

315, 629, OOO 00

1,100,607,600. 00

22,691,716. 73
2, 378,390 35
123,966, 676. 40
20, 265,328. 65
166, 887,895. 26
28,413,620 85
109,707,052.40
8,007, 595. 28

123,730 00
38,160 00
1, 387,800. 00
184, 650 00
1, 304,900 00
262, 776. 00
860,776. 00
1, 604.00

22,815,446. 73
2,416,640 35
125,364,376. 40
20,449,878. 55
167,192, 795. 25
28,676,395. 85
110, 557, 827. 40
8,009,199. 28

481, 318,174.81

4,154, 284. 00

.485,472,468. 81

23,361,806, 684.81 36,493,163,154.00

69,864,968,838.81

o
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Security a c c o u n t

A c c o u n t w i t h T r e a s u r e r of t h e U n i t e d States
Principal account

Retirements
T i t l e of loan, series, or issue

Receipts

$646,250,150 00
54, 631,980.00
30,000,000 00
60,000, OOO 00
28,894, 600.00
11,995,880.00

Redemptions

$46, 626,100.00
6,677,800 00
4, 052,600.00
200,000.00

821, 772,510 00

56, 456, 50O 00

$699,724,060.00
48,954,180 00
25,947,40O 00
49,800,000.00
28, 894,500.00
11, 995,880. 00
765,316, OIO 00

703,306, 250 00

4,175,650, 050. 00 1, 290, 272, 70O 00
640,099, 900. 00
6,964, 581,100. 00
14, 000. 00

763, 962, 300. 00
1,047,088, 500. 00

Outstanding
T o t a l retired

$46, 626, IOO 00 $1,889,517,060 00 $1,936,043,160 00
112,036,960. 00
117,713,760 00
5, 677,80O 00
69,398,760.00
73,451,360 00
4, 052,600 00
141,499, 500.00
141,699, 600: 00
200,000. 00
23,880,900 00
23,880,900.00
iO, 630,400.00
10,630,400. 00

$699, 724,050. 00
48,964,180. 00
26,947,400. 00
49,800,000. 00
28,894,600. 00
11,995,880 00

56, 456, 50O 00

T o t a l pre-war b o n d s . .

2. L i b e r t y b o n d s a n d T r e a s u r y b o n d s :
F i r s t L i b e r t y loan of 1932-1947—
(a) F i r s t 3M's
.1
ib) First 4 ' s . . - ic) F i r s t 434's
id) F i r s t second 434's
3,104, 558, 750.00
Second L i b e r t y loan of 1927-1942—
(a) Second 4's
ib) Second 4 K ' s
2,885, 377, 350.00
T h i r d L i b e r t y loan of 1928
.
F o u r t h L i b e r t y loan of 1933-1938....
6, 324, 481, 200. 00
T r e a s u r y bonds—
(a) 434 per cent of 1947-1952
763,948, 300. 00
ib) 4 per cent of 1944-1954
1,047,088, 600. 00

18,748, 602, 500. 00 2, 671,628,750. 00 16,076,973, 750 00

36,481,40O 00
2,091,800 00
72,017,800. 00
11,201, 600 00

336,141, 300. 00
617, 769, 70O 00
486,940, IOO 00
366,981, 500. 00
668, 201,400. 00
50,000, OOO 00
2,625,034,000 00

Pre-war bonds:
2 per cent consols of 1930
2 per cent P a n a m a C a n a l loan of 1916-1936..
2 per cent P a n a m a C a n a l loan of 1918-1938..
3 per cent P a n a m a C a n a l loan of 1961
-...
3 per cent conversion b o n d s of 1946-1947
_.
2J-^ per cent postal savings b o n d s (first to
t w e n t y - e i g h t h series).

E x c h a n g e s , etc.,
for securities of
equal par v a l u e
issued

2,246,962,570.00

2,303, 419,070. 00

765,316, OIO 00

78,450.00
16,520,060 00
22,337,40O 00

3, 669,320,40O 00
622,972,060.00
710, 276,160 00
5,285,150 00

3,669,398,860 00
638,492,100. 00
732,613, 560. 00
5, 285,150.00

1,409, 996,950.00
5, 243, 350.00
532, 788, 200.00
3, 492,160.00

79,081,460 00 4,249,178,700.00 4,328, 260,150 00
624, 224,800.00 4, 752, 706, 660. 00 5, 376,931,350 00
1,290, 272, 700.00 6, 712,481, 700.00 8,002, 764,400.00
640,099, 900.00 11, 000,948,700.00 11, 641, 048, 600 00

21,091,600.00
3,083,467,150.00
2, 885, 377,360. 00
6,324,481, 20O 00

380,314,200 00
224, 416,40O 00

763,948,30O 00
1,047,088, 500.00

120, 792,600 00




299,659,90O 00
615,677,900. 00
414,922,30O 00
355,779,900. 00
668,201,40O 00
50,000, OOO 00
2, 404,241,400.00

Total Liberty bonds and
bonds.
T r e a s u r y notes:
Series B-i926
Series A-1926
Series B-1926.
Series A-1927
Series B-1927
A d j u s t e d service series
Total Treasury notes.

Treasury

2,671,628,760.00 32, 227,886,000.00 134,899, 513, 760 00

Ul

O

i
Kl

16,076,973, 760 00

o

37, 935, 90O 00 1,951, 619, 650 00

1, 989, 465, 550 00

3, 807,865, OOO 00

Redemptions

Outstanding

14,000.00

380,300,200.00
224, 415,400.00

35,481,40O 00
2,091,800.00
72,017,80O 00
11, 201, 600 00

219,444, 50O 00
364,943, 20O 00
412,158,200. 00
305,388,100. 00
396, 698,30O 00

254,925,900.00
367,035, OOO 00
484,176, OOO 00
316, 689,70O 00
396,698, 30O 00

299, 669,90O 00
616,677,900 00
414,922,300. 00
355,779,900.00
668, 201,40O 00
60,000, OCO. 00

120, 792,600.00

1, 698, 632, 300. 00

1, 819,424,90O 00

2,404,241,40O 00

W

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Interest-hearing United States securities outstanding June 30, 1925, and transactions in such securities frorn date of inception, showing reconciliation of account of the Treasurer of the United States with security account—Continued

CO

o

Security a c c o u n t

Account w i t h T r e a s u r e r of t h e U n i t e d States

Retirements

Principal account
T i t l e of loan, series, or issue
Receipts

Redemptions

$391, 369, 500. 00
219,462,000. 00
124, 247, 000. 00
60 000 000 00

$101,793, 50O 00
40,000, OOO 00
4,600, OOO 00

$229, 576, OOO 00
179,462, OOO 00
124, 247, 000. 00
46,400, 000. 00

785,078, 500 00

206, 393, 500. 00

678, 685,000. 00

22, 691, 716. 73
2, 378 390 35
123,966,676.40
20, 265,328 55
165,887,895. 25
28, 413, 620. 85
109, 707,052.40
8,007, 695. 28

11, 505,186. 41
567, 965. 50
27,033, 124.15
5, 212, 294. 6 5 '
31, 715, 807. 00
3, 950,866. 70
11, 503, 831.05
4,139, 008.00

11,186, 529. 32
1, 810, 424.85
96, 933, 452. 25
15, 053, 033. 90
134,172,088. 25
24, 462,754.15
98, 203, 221.35
3, 868, 587. 28

481, 318,174. 81

95, 628,083.46

385, 690,091.35

23,361,805,684.81

3,150,899, 433.46 20, 210, 906, 251.36




Redemptions

Outstanding

4. Certificates of i n d e b t e d n e s s :
Series TS-1926
Series T D - 1 9 2 6 . . .
Series TJ-1926Adjusted service series
T o t a l certificates of i n d e b t e d n e s s
5. T r e a s u r y (war) savings securities:
T r e a s u r y savings c e r t i f i c a t e s Series 1 9 2 1 . . .
Series 1921, issue D e c . 15, 1921 .
Series 1922, issue D e c . 16, 1921..
Series 1922, issue Sept. 30, 1922.
Series 1923, issue Sept. 30,1922
Series 1923, issue D e c . 1, 1923
Series 1924, issue Dec. 1, 1923
T h r i f t a n d T r e a s u r y savings s t a m p s , u n classified sales, etc.
T o t a l T r e a s u r y (war) savings s e c u r i t i e s . .
T o t a l to J u n e 30, 1925

$161, 793, 50O 00
40,000,000. 00

Exchanges, etc.,
for securities of
equal par value
issued

Outstanding
T o t a l retired

$216, 792, 60O 00
70, 529, 500. 00
28, 207,000.00

$378, 586,000. 00
110, 629, 500. 00
28,207,000. 00
4, 600,000. 00

$229, 576,000. 00
179,462, OOO 00
124,247,000. 00
45,400,000. 00

206, 393, 50O 00

316, 529, OOO 00

621,922, 50O 00

578,685,000.00

11, 505,186. 41
567,966. 60
27,033,124.15
5, 212,294. 65
31, 715,807. 00
3,950.866. 70
11,603,831.05
4,139,008. 00

123,730 00
38,150 00
1, 387,80O 00
184, 550. 00
1, 304,900 00
262,775. 00
850, 775. 00
1, 604. 00

11, 628,916. 41
606,116. 50
28, 420,924.15
6, 396,844. 66
33, 020,707.00
4,213, 641. 70
12, 354,606. 05
4,140, 612.00

11,186, 629. 32
1,810,424. 86
96,933,452. 25
15,053,033. 90
134,172,088. 25
24,462,754.16
98, 203, 221.36
3,868, 687. 28

4,154,284.00

99,782,367.46

386, 690,091. 35

3,160,899,433. 46 36,493,163,154. 00 39, 644,062, 587.46

20,210,906,261.35

4, 600,000. 00

•

o
w
H
O
H

-w

o
Ui

95, 628,083. 46

EXHIBIT

26

INTEREST-BEARING UNITED STATES PRE-WAR BONDS OUTSTANDING, AND TRANSACTIONS IN SUCH SECURITIES
FROM DATE OF INCEPTION TO JUNE 30, 1925
P a n a m a C a n a l loans
Detail

I . Issued:
A . U p o n original s u b s c r i p t i o n s against cash received
B . U p o n exchange, transfer, etc., for securities of e q u a l p a r v a l u e
retired:
1. E x c h a n g e —
(a) C o u p o n for registered
ib) M u t i l a t e d for perfect
2. Transfer of o w n e r s h i p
3. Miscellaneous
C. U p o n a d j u d i c a t e d claims for r e p l a c e m e n t . .
D . Total issued.
Retired:
A . A c c o u n t of r e d e m p t i o n —
1. U p o n o p t i o n
2. Miscellaneous sources
.
B . A c c o u n t of exchange, transfer, etc., for securities of e q u a l p a r v a l u e
issued:
1. Exchange—
(a) C o u p o n for registered
ib) M u t i l a t e d for perfect
2. Transfer of o w n e r s h i p
3. Miscellaneous
C . A c c o u n t of loss or d e s t r u c t i o n (covered b y i n s u r a n c e or b o n d s of
indemnity)
_
D . Total retired.
I I I . O u t s t a n d i n g J u n e 30,1925 (per p u b l i c d e b t s t a t e m e n t ) .




2 per cent consols of 1930

$646,260,160

2}/i per cent
postal savings!
b o n d s (first
to twentye i g h t h series)

Total

2 per cent
b o n d s of
1916-1936

2 per c e n t
b o n d s of
1918-1938

3 per c e n t
b o n d s of
1961

$54, 631,980

$30, 000,000

$60,000.000

$28,894, 500

$11,995,880

$821,772, 510

22, 364,100
9,000
85,951, 300
33,159, 600
16, 500

8,885,300
8,997,000
5, 998, 600

1,143, 500
1,000
9,449, 320
5,600
31,080

65, 611, 230
10,000
1, 664,810,710
526, 666, 360
74,280

191, 499, 500

52, 776,400

22, 626, 280

3,068,735, 080

22,010,760

342, 780

764,800

1, 395, 570, 750
471,907,860
27,700

101, 751, 900
9,941, 280

63, 090, 440
5, 643, 520

2, 535,767, 200

46, 626,100

3 per cent
conversion
b o n d s of
1946-1947

99. 398, 760

5, 677,800

56,256, 600
200,000

4,052, 600
200,000

o

S
Ui

cl
22,010, 760

342, 780

764, 800

1, 396, 570, 750
471, 907,850

101, 751,900
9, 941, 280

63,090, 440
6, 543, 520

22,364,100
9,000
85,951, 300
33,159, 600

1, 936, 043,150

117, 713, 760

73,461,360

699, 724,060

48,954,180

25,947,400

27,700

8, 885,300

55, 511, 230
10,000
1, 664,810, 710
526,656, 350

8.997, 000
5.998, 600

1,143, 600
1,000
9, 449,320
5,500
31,080

74,280

141, 699, 500

23,880,900

10, 630,400

2, 303, 419.070

49,800,000

28, 894, 600

11,996,880

td

765,316,010

16,500

to
CO

EXHIBIT

bO
00

27

to

I N T E R E S T - B E A R I N G U N I T E D STATES L I B E R T Y BONDS AND T R E A S U R Y BONDS O U T S T A N D I N G , AND
ACTIONS IN SUCH SECURITIES F R O M DATE OF INCEPTION TO J U N E 30, .1925

Second L i b e r t y loan of 1927-1942

F i r s t L i b e r t y loan of 1932-1947

First 3H's

Issued:
A . U p o n original s u b s c r i p t i o n s against cash received
B . U p o n exchange, conversion, etc., for securities of equal p a r v a l u e
retired—
1. E x c h a n g e —
(a) I n t e r i m certificates for b o n d s i
(6) Registered for c o u p o n
(c) C o u p o n for registered
(d) M i x e d cases
ie) 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
ig) M u t i l a t e d for perfect 2
_
2. Conversion
3. Transfer of o w n e r s h i p
C. U p o n adjudicated claims for r e p l a c e m e n t *
D. Total issued.-..II

Retired:
" A . Account 01 r e d e m p t i o n —
1. Purchases—
(a) B o n d p u r c h a s e fund
(6) S i n k i n g fund
_
ic) R e p a y m e n t s of loans t o foreign g o v e r n m e n t s
(d) Franchise-tax receipts
ie) F r o m s u r p l u s m o n e y in t h e T r e a s u r y
2. Securities received for r e d e m p t i o n —
(a) Federal«estate taxes
ib) Gifts, forfeitures, a n d miscellaneous
ic) R e p a y m e n t of principal t o foreign g o v e r n m e n t s
id) I n t e r e s t p a y m e n t s on obligations of foreign g o v e r n m e n t s . .
ie) Proceeds i n p a y m e n t for 4 per c e n t T r e a s u r y b o n d s
(/•) I n c o m e tax




F i r s t 4's

TRANS-

F i r s t second
4^'s

F i r s t 4M's

Second 4's

Second i H ' s

$3,807,865,000

$1,989,455,650

O
., 511,264,450
228,579,000
405, 636,300
1, 698, 900
723,244,800

W

115, 211,900
4, 245,800

$473, 901,500
7,172,400
8,255, 000
60,000
50,302,100
7,986,850
4,850
3 94,401, 200
1, 593,800
67, 750

4, 979,394,800

643, 736,450

1,266,401,750 ;

11,000

15,518,000
1,000

21, 389, 000
24,850

67,450

1,050

913, 750
9,800

58,100

$49, 799, 600
. 100, 639,050
242,451,250
295,878,850
79,450
555,126,600
21,262,600
175,350

616,
,
i
I
,
i
:

1, 503,
2,421,
3,492,
169,
4,
8, 777,300

492,400
317,260
188,100
378, 063, 000
45, 866, 550
37, 500
; 251,100
,
281,860

$372,849, 700
513,110,400
1,530,478,300
2,198,166,400
392,100
3, 707, 691, 950
136,401, 650
1,308,000

4,349,361, 750

8,460,398, 500

79,050, 000
16,000
6,000

399, 643i 000
40, 649,000
2, 686, 950
2, 922,450

H
O

. ^.
*^
>
o
Ui

9,450

17, 677,900
364,100
22,964, 550
137,416, 850

B . A c c o u n t of exchange, conversion, etc., for securities of e q u a l par v a l u e
issued—
1. E x c h a n g e —
(a) I n t e r i m certificates for b o n d s i.
(6) Registered for coupon..^.,..:^.;:i
i.^....^
....
(c) C o u p o n for registered
..1...

o

(d)

Q

M i x e d cases

.

Total retired.

372,849,700
613,110,400

.

O u t s t a n d i n g J u n e 30, 1925 (per p u b l i c d e b t s t a t e m e n t ) . .

49, 799, 600
100,639,050

580,060
616,950

58,100
105,463,900
115, 211,900

7,172,400
8,255,000
50,000
50,302,100
7,986,860
4, 860
547, 555,060
1, 593,800

242,451,250
295,878,850
79,450

1, 603,100
2, 421, 550
50

21,252)600

159, 05b

. 39;.492,400
69,317,250
188,100
.378,063,000
45, 856, 560
37,500
3, 707, 691, 950
8, 251,100

4, 261, 560

52, 000

175,360

4,400

281,850

•1,308,000

3, 569,398,850

-.".-•.:—...-J^.......--J...^.....--..

(e) 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 . . . . . .
ig) M u t i l a t e d for perfect ^ . . . . J . ' .
.•
.
2. C o n v e r s i o n
3. Transfer of o w n e r s h i p
.
.
C . A c c o u n t of loss or d e s t r u c t i o n (covered b y i n s u r a n c e or b o n d s of indemnity <-..
:.
_-..._ J..
....i.iv.ir.
D

1,985,166,960
228,579,000
406, 636,300
1,698,900
723,244,800

638,492,100

732, 613,550

5,286,150

4; 328, 260,160

6,376,931,360

1,409,996,950

6, 243,360

632, 788,200

3,492,150

21,091, 600

3,083,467,150

1,530,478,300
2,198,166,400
392,100
136,401,650

• Ui

O

Treasury bonds
Detail

Third 4Ji's

Fourth 4K's

Total
i H per cent
of 1947-1952

4 per cent of
1944-1954

O
H

I . Issued:
A . U p o n original s u b s c r i p t i o n s against cash received
...
B . U p o n exchange, conversion, etc. for secm-ities of equal par value r e t i r e d 1. E x c h a n g e —
(a) I n t e r i m certificates for bonds i
(6) Registered for c o u p o n
(c) C o u p o n for registered
.id) M i x e d cases.
_
_
(e) 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
_-.
ig) M u t i l a t e d f o r perfect 2 . .
_
2. Conversion
..-..
3. Transfer of o w n e r s h i p . .
C . U p o n a d j u d i c a t e d claims for r e p l a c e m e n t <
'-.
D . T o t a l issued

.:..

$4,175, 650, 050

6, 964, 681,100

$763,962,300

$1,047,088, 500

477,516, 200
782,225, 950
9,300
2,385, 917,960
2,910, 270,300
716,160

630, 680, 850
1,583,872,150

20,392,200
182, 770,100

2,611,100
68, 758, 800

3, 564,835,350
4,932,843,950
643,150

159,116,800

154, 234,650
1, 691,200

293,964,160
4,109,100

17,968,400
39,900

10,888,131,760

17,965,529,800

1,144,262,600

149,378,000

ii'soo"
' " 3 , " 667," 500'
1,271,503,900

$18, 748, 602, 500
985,165,960
829, 673, 500
715, 201,960
1, 946,300
175,290, 650
393,423,450
1, 944,150
360, 710, 900
762,704,800
11,823,360

W

>
C

60,976,487,600

1 Does n o t i n c l u d e transactions covering b o n d s issued in lieu of 3 K per cent i n t e r i m certificates lost or d e s t r o y e d .
2 I n c l u d e s c o u p o n error t r a n s a c t i o n s .
3 D o e s n o t i n c l u d e t r a n s a c t i o n s covering 4 per c e n t b o n d s issued in lieu of 3}4 p e r c e n t i n t e r i m certificates s u r r e n d e r e d .
.
* I n c l u d e s t r a n s a c t i o n s covering 3M per cerit b o n d s a m b u n t i n g t o .$4,119,100 a n d ' 4 per'cent" b o n d s a m o u n t i n g t o $15,750 issued u p o n a d j u d i c a t e d claims for r e p l a c e m e n t m lieu
of 3 H per c e n t i n t e r i m certificates lost or d e s t r o y e d .
.




to
OO
OO

Interest-bearing United States Liberty bonds and Treasury bonds outstanding, and transactions in such securities from date of inception to
June 30, 1925—Continued

to
00

Treasury bonds
Detail

Retired:
A. Account of redemption—
1. Purchases—
(a) Bond purchase fund
(6) Sinking fund
(c) Repayinents of loans to foreign governments
(d) Franchise tax receipts
(e) From surplus money in the Treasury
2. Securities received for redemption—
(c) Federal estate taxes
_
'..
ib) Gifts, forfeitures, and miscellaneous
ic) Repayment of principal to foreign governments
id) Interest payments on obligations of foreign governments
(e) Proceeds in payment for 4 per cent Treasury bonds
if) Income tax
_
B. Account of exchange, conversion, etc. for securities of equal par value issued—
Exchange(fl) Interim certificates for bonds i.
ib) Registered for coupon
ic) Coupon for registered
id) Mi.xed cases
(e) Of denominations
if) Temporary for permanent
ig) Mutilated for perfect 2
Conversion
_
Transfer of-ownership..
C. Account of loss or destruction (covered by insurance or bonds of indemnity) ^
D. Total retired
III. Outstanding June 30, 1925 (per public debt statement)

Third 4M's

Fourth 43^'s

$433,308,100
306,147,950
267,482,260
54,519,550
128,466,960

28,755,560
220,400

4 per cent of
1944-1964

$566,987,060
13,943, 650
29,942,750

16,882,900

4}>i per cent
of 1947-1952

190,100
93, 274,400
500

Total

$1,615,895,150
360, 793,460
, 290,017,950
57,442,000
128,466,950
$6,000
8,000

64,236,100
870,360
22, 964,550
137, 666,850
93,274,400
1,000

250,000
500'

1,985,165,950
1,829, 673,600
3, 716,201,950
1,946,300
9,176,290,650
10,393,423,460
1, 944,150
4,360, 710,900
752,704,800
11,823,350

477, 516,200
782, 225,960
9,300
2,385, 917,950
2, 910, 270,300
716,160

630,680,850
1, 683,872,160

20,392,200
182, 770,100

$2,611,100
68,758,800

3, 554,835,350
4,932,843,950
643,150

159,116,800

149,378,000

154, 234,650
1, 591,200

293,964,150
4,109,100

17,968,400
39,90O

8,002,754,400

11,641,048, 600

380,314,200

224,415,400

34,899,513, 750

2,886,377,360

6,324,481, 200

763,948,300

1,047,088, 600

16,076,973, 760

i2,"800'
3,667, 600

1 Does not include transactions covering bonds issued in lieu of 33^ per cent interim certificates lost or destroyed.
2 Includes coupon error transactions.
* Includes transactions covering 3H per cent bonds amounting to $4,119,100 and 4 per cent bonds amounting to $15,750 issued upon adjudicated claims for replacement m lieu
of 33^ per cent interim certificates lost or destroyed.




O
O

;>
o
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EXHIBIT

28

I N T E R E S T - B E A R I N G U N I T E D STATES T R E A S U R Y N O T E S 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 OUTSTANDING,
AND TRANSACTIONS IN SUCH SECURITIES F R O M DATE OF I N C E P T I O N TO J U N E 30, 1925
T r e a s u r y notes
Detail
Adjusted
Series B-1925 Series A-1926 Series B-1926 Series A-1927 Series B-1927
service series
Ui

Issued:
A . U p o n original s u b s c r i p t i o n s . . .
B . U p o n exchange for securities of e q u a l p a r v a l u e retired:
1. Exchange—
(a) Of d e n o m i n a t i o n s ' _ . . .
ib) M u t i l a t e d for perfect
U p o n adjudicated claims for replacement
.
D . T o t a l issued
Retired:
A. A c c o u n t of r e d e m p t i o n —
1. Purchases—
(a) Sinking fund
(&) F r a n c h i s e t a x receipts
_
_.
(c) Proceeds of sales of Treasurj'^ notes
2. Securities received for r e d e m p t i o n —
(a) F e d e r a l e s t a t e t a x .
ib) Gifts, forfeitures, a n d miscellaneous
(c) R e p a y m e n t of loans to foreign g o v e r n m e n t s
• id) I n t e r e s t p a y m e n t s o n obligations of foreign g o v e r n m e n t s
ie) U p o n o p t i o n
B . A c c o u n t of exchange for securities of e q u a l p a r value issued—
1. E x c h a n g e —
(a) Of d e n o m i n a t i o n s 2
1
.
ib) M u t i l a t e d for perfect
..-.
C . A c c o u n t of loss or destruction (covered b y i n s u r a n c e or b o n d s of i n d e m n i t y ) .
D . Total retired.
I I I . O u t s t a n d i n g J u n e 30, 1925 (per public d e b t s t a t e m e n t ) . .
^ I n c l u d e s deliveries against receipts b y other F e d e r a l reserve b a n k s .




$335,141,300

$486,940,100

$366,981, 600

$668, 201,400

219, 442,000
2,000
600
...i

$617,769, 700
364, 942,600
600

412,155, 200
2,500
500

305,385,000
100
3,000

664,685,800

982,712,900

899, 098,300

672, 369, 600 11, 064,899, 700

11,315,900
4,800, 000
19,361. 600

1,018,300
1, 000,000
32,500

9, 564, 200
1,800,000
60,653, 600

4,000

11, 000
30,000

o

396, 698,300

$50, OOofoOO

td
60,000,000

o

6, 798, 000

H

4,403, 600

>
Ui

d
219, 442,000
2,000
500

364,942,600
600

412,155, 200
2,500
600

305,385,000
100
3,000

396, 698,300

254,926,900

367,035, 000

484,176, 000

316, 589, 700

396, 698, 300

299, 659.900

615,677,900

414, 922,300

355, 779,900

668,201, 400

50, 000,000

' I n c l u d e s receipts against deliveries b y other F e d e r a l reserve b a n k s .

to
OO
CJl

Interest-bearing United States Treasury notes and certificates of indebtedness outstanding, and transactions in such securities frorn date of
inception to J u n e 30, 1925—Continued

to
OO

Certificates of indebtedness
Detail
TS-1925
I. Issued:
A. Upon original subscriptions
B. Upon exchange for securities of equal par value retired:
1. Exchange—
(a) Of denominations 1
(6) Mutilated for perfect
C. Upon adjudicated claims for replacement
-.
D. Total issued.
Retired:
A. Account of redemption—
1. Purchases—
(c) Sinking fund
_
(6) Franchise tax receipts...
ic) Proceeds of sales of Treasury notes
2. Securities received for redemption—
(a) Federal estate tax...
(6) Gifts, forfeitures, and miscellaneous
(c) Repayment of loans to foreign governments
id) Interest payments on obligations of foreign governments
ie) Upon option...
B. Account of exchange for securities of equal par value issued—
1. Exchange—
(a) Of denominations 2
...
ib) Mutilated for perfect...
C. Account of loss or destruction (covered by insurance or bonds of indemnitjOD. Total retiredI l l . Outstanding June 30,1926 (per public debt statement).
' Includes deliveries against receipts by other Federal reserve banks.




Series
TD-1925

Series
TJ-1926

$391,369, 600 $219, 462,000 $124, 247, 000
216, 792,600

70, 629, 500

289, 991, 600

162, 454, 000

$60,000,000

.$3, 310,112, 500
2,014,152,100
5,200
4,000

28,207,000

608,162,000

Total

Adjusted
service series

50,000,000

O

5,324, 273, 800

w
o

28, 696,400
7, 600,000
84,451, 200
20, 439,000
128, 854, 600
12, 500, 000

40,000,000

216, 792, 500

70, 629, 600

378, 586,000

110, 529, 500

229, 576,000

179, 462, 000

4,600,000
28, 207,000

28, 207, 000
124,247,000

15, 000
30,000
20, 439,000
128, 854, 500
57,100,000
2,014,152,100
6,200
4,000

4,600,000

2, 341,347,400

45,400,000

2,982,926,400

2 Includes receipts against deliveries by other Federal reserve banks.

H

h-(

a
Ui

EXHIBIT

29

INTEREST-BEARING UNITED STATES TREASURY (WAR) SAVINGS SECURITIES OUTSTANDING, AND TRANSACTIONS IN SUCH SECURITIES FROM DATE OF INCEPTION TO JUNE 30, 1925
Issue of D e c . 15, 1921

Issue of S e p t . 30, 1922

Issue of D e c . 1,1923

Series 1921

Detail

Series 1921

Series 1922

Series 1922

Series 1923

Series 1923

Series 1924

Thrift and
Treasury
savings
stamps,
unclassified
sales, e t c .

Total
Ui

I. Issued:
A . U p o n original subscriptions against
$22,691, 715. 73 $2,146,780. 00 $113,365,960 00 $19,067, 562. 50 $166,816,857. 00 $27,109, 600.00 $105,442,980. 00 $8,007, 695. 28 $454, 648,050. 61
cash received
B . Accrued discount credited as p u b l i c
26, 670,124. 30
4, 264, 072. 40
9, 072,038. 25 1,304,020 85
231, 610. 3.5 10, 600, 616. 40 1,197,766. 05
d e b t receipts
C . U p o n exchange, etc., for securities of
3, 792,324. 00
1, 604.00
801, 275. 00
249, IOO 00
1,153, IOO 00
163,150 00
1, 276, 900. 00
36,900. 00
l i b , 295. 00
equal par value retired.
D . U p o n adjudicated claims for replace361, 960 00
49, 600. 00
13, 675. 00
151, 800. 00
21,400 00
110,900. 00
1, 250 00
ment
13,435.00
E . T o t a l issued

22,816, 445. 73 2, 416,540 36 125,364, 376. 40 20, 449,878. 55 167,192, 795. 25 28, 676, 395. 85 110, 557,827. 40 8, 009,199. 28 486,472,468. 81

.. .

II. Retired:
A . A c c o u n t of r e d e m p t i o n
B . A c c o u n t of exchange, etc., for securities of e q u a l p a r value issued
C A c c o u n t of loss or destruction
D . T o t a l retired

11, 505,186. 41

567, 965. 50

27,033,124.15

6, 212, 294. 66

31, 715,807. 00

3, 960,866. 70

110, 295. 00
13, 435. 00

36,900 00
1, 260 00

1, 276,900. 00
110,900 00

163,160 00
21,400. 00

1,163, IOO 00
151,800. 00

249,100. 00
13, 675. 00

. - 11, 628,916. 41

606,116. 60

28, 420, 924.16

5, 396, 844. 65

33, 020, 707. 00

4, 213, 641. 70

I l l , O u t s t a n d i n g J u n e 30, 1925 (per p u b l i c
debt statement)




11,186,529. 32 1,810,424. 85

96, 933,452. 25 15,053,033.90 134,172, 088. 25 24, 462, 754.15

11,503,831.05 4,139, 008. 00

96, 628,083. 46

1, 604. 00

3, 792,324. 00
361, 960 00

12,354, 606. 05 4,140,612.00

99, 782,367.46

801, 275. 00
49, 500. 00

o

o
H

>
Ui

98, 203, 221. 36 3,868,587. 28 386, 690,091.35

to

00

-a

238

REPORT ON THE FINAN-CES
EXHIBIT

30

BRIEF DESCRIPTION OF LIBERTY BONDS AND TREASURY BONDS

Forw,' and Denominations.—Liberty Bonds are issued in both
coupon and registered form in the following denominations: Coupon,
$50, $100, $500, $1,000, $5,000, $10,000; registered, $50, $100, $500,
$1,000, $5,000, $10,000, $50,000, $100,000; except that the First
33^'s are not issued in coupon form in denominations of $5,000 and
$10,000, nor in registered form in the denomination of $50.
Treasury Bonds are issued in both coupon and registered form in
the following denominations: Coupon, $100, $500, $1,000, $5,000,
$10,000, $100,000; registered, $100, $500, $1,000, $5,000, $10,000,
$50,000, $100,000. .
Where Ohtaindble.—Subscriptions for bonds of a new issue may be
made to almost any banking institution in the United States, or
direct to the Federal Reserve Bank of your district, subject to the
terms of the circular announcing the issue. After the close of the
subscription books, bonds of any outstanding issue may be purchased
at the market price, and your own bank, or the Federal Reserve
Bank of your district, will endeavor to fill your order in the market.
3y2 per cent Liberty Bonds exempt from Federal, State^ and local
taxation.—Such bonds are exempt, both as to principal and interest,
from all taxation (except estate or inheritance taxes) 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.
4 per cent and 434 P^^ ^^'^^ Liberty Bonds and Treasury Bonds
exempt from State and local taxation and from normal Federal income
^dx.—-Such bonds are 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 inco°me 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.
4 per cent and 4M P^'^ <^^^^ Liberty Bonds and Treasury Bonds also
entitled to limited exemptions from Federal income surtaxes and profits
taxes,—Such bonds are also entitled to limited exemptions from
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, in respect to the interest
on principal amounts thereof, as lollows:
During the life of the obligations—
$5,000 in the aggregate of First 4's, First 4i^'s, First-Second
41^'s, Second 4's, Second 4M's, Third 4M's, Fourth 4M's,
Treasury Bonds of 1947-52, Treasury Bonds of 1944-54,
Treasury Certificates of Indebtedness, War Savings Certificates, and Treasury Savings Certificates.




SECRETAEY OF T H E TREASURY

239

And in addition, pursuant to the consolidation (effective January
1, 1924) made by the Revenue Act of 1924, and the proclamation
of the President which fixed July 2, 1921, as the date of the termination of the war:
Up to July 2, 1926—
$60,000 in the aggregate of First 4's, First 4M's, First-Second
4M's, Second 4's, Second 4M's, Third 4M's, and Fourth 4i^'s.
All bonds in hands of foreign holders exempt from taxes .—Bonds of
the United States, while beneficially owned by a nonresident alien
individual, or a foreign corporation, partnership, or association,
not engaged in'^business in the United States, are exempt, both as
to principal and interest, from any and 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.
4}4: P^f* (^ent Liberty Bonds and 4-H P^^ ^^^^^ Treasury Bonds receivable
at par in payment of Federal estate or inheritance taxes.—All such
bonds 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 are receivable by the United States
at par and accrued interest in payment of Federal estate or inheritance
taxes.
'Curhulative SinTcing Fund.—For the fiscal year beginning July 1,
1920, and for each fiscal year thereafter until all Liberty Bonds and
Yictory Notes, and other bonds and notes issued for refunding
urposes under any of the Liberty Bond Acts, or the Victory Liberty
-oan Act, or under any of such acts as amended, are retired, the
Victory Liberty LoaUcAct appropriates, out of any money in the
Treasury not otherwise appropriated, for the purposes of the cumulative sinking fund, an amount equal to the sum of (1) 2J^ per cent
of the aggregate amount of such bonds and notes outstanding on
July 1, 1920, less an amount equal to the par amount of any obligations of foreign governments held by the United States on that date,
and (2) the interest which would have been payable during the
fiscal year for which the appropriation is made on the bonds and
notes purchased, redeemed, or paid out of the sinking fund during
such year or in previous years.
Conversion privileges.—First 4's were convertible into First 434's,
and Second. 4's were convertible into Second 434's, up to the close
of business June 30, 1925. No conversion privileges are now outstanding.

P

The principal and interest of all Liberty Bonds and Treasury
Bonds are payable in United States gold coin of the present standard
of value.
Liberty Bonds and Treasury Bonds are issued under authority of
the acts of Congress approved April 24, 1017, September 24, 1917,
April 4, 1918, July 9, 1918, and September 24, 1918, as amended,
and pursuant to official Treasury Department circulars, from which
these statements are summarized and to which they are subject.




240

REPORT ON T H E FINANCES
E X H I B I T 31

BRIEF DESCRIPTION OF TREASURY NOTES, CERTIFICATES OF
INDEBTEDNESS, AND WAR-SAVINGS CERTIFICATES

Form and Denominations.—Treasury Notes are issued only in coupon form, and in the following denominations: $100, $500, $1,000,
$5,000, $10,000, $100,000.
Treasury Certificates of Indebtedness are issued in coupon form, and
in the following denominations: $500, $1,000, $5,000, $10,000,
$100,000.
Treasury Sayings Certificates have been withdraw!n from sale, but
were issued only in registered form, with maturity values of $25,
$100, and $1,000.
War-Savings Certificates are obligations of the Government when
one. or ;m.ore War-Savings stamps with a maturity value of $5 each
are affixed. War-Savings stamps have been withdrawn from sale.
Where Obtainable.—Subscriptions for notes or certificates of a new
issue may be made to almost any banking institution i n the United
States, or direct to the Federal Reserve Bank of your district, subject
to the terms of the circular announcing the issue. After the close of
the subscription books, notes or certificates of any outstanding issue
may be purchased at the market price, and your own baiiky or the
Federal Reserve Bank of your district, will endeavor to fill your order
in the market.
'
Treasury Notes, Treasury Certificates of Indebtedness, Treasury Savings Certificates, and War-Savings Certificates, exempt from State and
local taxation and from normal Federal income tax.—^All such notes
and certificates herein described are 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. The interest on
Treasury Certificates of Indebtedness, Treasury Savings Certificates,
War-Savings Certificates, Liberty Bonds, and Treasury Bonds, the
rincipaJ of which does not exceed in the aggregate $5,000, owned
y- any individual, partnership, association, or corporation, shall be
exeinpt from the taxes provided for in subdivision (b) above.
A l t Notes and Certificates of Indebtedness in hands offoreign holders
exempt from taxes.—Notes and certificates of indebtedness of the
United States are, while beneficially owned by a nonresident alien
individual, or a foreign corporation, partnership, or association, not.
engaged in business in the United States, exempt, both as to principal
and interest, from any and all taxation now or hereafter imposed oy
the United States, an}'- State, or any of the possessions of the United
States, or by any local taxing authority.

E




SECRETARY OF THE TREASURY

241

Treasury Notes bearing interest at a higher rate than 4 per cent per
annum, receivable at par in payment of Federal estate or inheritance
taxes.—^All such notes 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 are receivable by
the United States at par and accrued interest in payment of Federal
estate or inheritance taxes.
Treasury Notes and Certificates of Indebtedness receivable in payment of Federal income and profits ^axes.—Treasury Notes are receivable 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 or within six months before the maturity of the notes.
Treasury Certificates of Indebtedness maturing on quarterly tax
payment dates are receivable in payment of income and profits taxes
payable at the maturity of the certificates..
Cumulative Sinking Fund.—For the fiscal year beginning July 1,
1920, and for each fiscal year thereafter until all Liberty Bonds and
Victory Notes, and other bonds and notes issued for refunding puroses under any of the Liberty Bond Acts or the Victory Liberty
(Oan Act, or under any of such acts as amended, are retired, the Victory Liberty Loan Act appropriates, out of any money in the Treasury
not otherwise appropriated, for the purposes of the cumulative sinking
fund, an amount equal to the sum of (Ij 2 } ^ per cent of the aggregate
amount of such bonds and notes outstanding on July 1, 1920, less an
amount equal to the par amount of any obligations of foreign governments held by the United States on that date, and (2) the interest
which would have been payable during the fiscal year for which the
appropriation is made on the bonds "and notes purchased, redeemed,
or paid out of the sinking fund during such year or in previous years.
Treasury Savings Certificates and War-Savings Certificates—Limit
of Holdings.—Any one person at any one time may hold Treasury
Savings Certificates and War-Savings Certificates oi any one series
to an aggregate amount not exceeding $5,000 (maturit}^ value).
The certiucates issued within any one calendar year constitute a
separate series under the serial designation of the year of issue.

E

The principal and interest of all Treasury Notes and Certificates
of Indebtedness are payable in United States gold coin of the present
standard of value.
Treasury Notes, Treasury Certificates of Indebtedness, Treasury
Savings Certificates, and War-Savings Certificates are issued under
authoritv of the acts of Congress approved April 24, 1917, September
24, 1917"; April 4, 1918, July 9, 1918, September 24, 1918, March 3,
1919, and November 23, 1921, as amended, and pursuant to official
Treasury Department circulars, from which these statements are
summarized and to which they are subject.




242

REPORT ON THE FINANCES
EXHIBIT

32

[Third supplement to Department Circular No. 225. Public Debt]

RECEIPT OF LIBERTY BONDS, TREASURY BONDS, AND TREASURY
NOTES FOR ESTATE OR INHERITANCE TAXES
TREASURY DEPARTMENT, .
O F F I C E OF THE SECRETARY,

Washington, October 15, 1925.
1. The provisions of Department Circular No. 225, dated January
31, 1921, as supplemented June 30, 1922, and July 31, 1923, prescribing regulations governing the receipt of bonds and notes of the
United States for Federal estate or inheritance taxes are hereby supplemented to show the bonds and notes at this date outstanding, bearing
interest at a higher rate than 4 per centum per annum, which come
within the provisions of Department Circular No. 225, dated January 31, 1921, as thus supplemented. The bonds and notes are:
Description

Date of issue

(a)f First Liberty loan converted 4 ^ per cent bonds of 1932-47
_.
ib) First Liberty loan second converted 43^ per cent bonds of 1932-47.
ic) Second Liberty loan converted 43^ per cent bonds of 1927-42
id) Third Liberty loan 43^ per cent bonds of 1928
(e) Fourth Liberty loan 4M per cent bonds of 1933-38
(/) 434 per cent Treasury bonds of 1947-52
iQ)
ih)
ii)
0')
(k)

4 ^ per cent notes, payable Mar. 15, 1926
iYs per cent notes, payable Dec. 15, 1925
4 ^ per cent notes, payable Sept. 15, 1926
43^ per cent notes, payable Dec. 15, 1927
4 ^ per cent notes, payable Mar. 15, 1927

i.

Short title

First A}i's.
F i r s t second
4M's.
May 9,1918 Second 434's.
do
Third 4)i's.
Oct. 24,1918 Fourth 4K's.
Oct. 16,1922 Treasury bonds
of 1947-52.
Mar. 15,1922 Series A-1926.
June 15,1922 Series B-1925.
Aug. 1,1922 Series B-1926.
Jan. 15,1923 Series A-1927.
May 15,1923 Series B-1927.
May 9,1918
Oct. 24,1918

2. For the calculation of accrued interest on the current coupons
of bonds and notes tendered in payment of estate or inheritance
taxes under this circular, the method outlined in Exhibit B to Department Circular No. 225, dated January 31, 1921, should be
followed. Interest tables at the various rates borne by the various
issues, or for other or future issues, may be obtained from the Treasury Department, Division of Loans and Currency, Washington,
upon request.




A. W.

MELLON,

Secretary of the Treasury.

SEORETARY OF T H E TREASURY
EXHIBIT

243

33

[Department Circular No. 349. Public Debt]

UNITED STATES OF AMERICA—FOUR PER CENT TREASURY BONDS
O F 1944-^64, D A T E 6 A N D B E A R I N G I N T E R E S T F R O M D E C E M B E R
15, 1924, DUE D E C E M B E R 15, 1954, R E D E E M A B L E AT T H E O P T I O N O F T H E U N I T E D STATES AT P A R AND ACCRUED I N T E R E S T
ON AND A F T E R D E C E M B E R 15, 1 9 4 4 , I N T E R E S T P A Y A B L E J U N E
15 AND D E C E M B E R 1 5

The Secretary of the Treasury invites subscriptions, at par and
accrued interest, from the people of the United States," lor four
per cent Treasury bonds of 1944-54, of an issue of gold bonds of
the United States authorized by the Act of Congress approved
September 24, 1917, as amended. The amount of the offering will
be $200,000,000, or thereabouts, with the right reserved to the Secretarjr of the Treasury to allot additional bonds to the extent that
Third Liberty Loan 4,1^ per cent bonds. Treasury notes of Series
A-1925, or Treasury certificates of indebtedness of Series TM-1925,
are tendered in payment.
.

DESCRIPTION OF BONDS

The bonds will be dated December 15, 1924, and will bear interest
from that date at the rate of four per cent per annum payable June
15 and December 15 in each year on a semiannual basis. The bonds
will mature December 15, 1954, but may be redeemed at the option
of the United States on and after December 15, 1944, in whole or
in part, at par and accrued interest, on any interest day or days,
on four months' notice of redemption given in such manner as the
Secretary of the Treasury shall prescribe. In case of partial redemption the bonds to be redeemed will be determined by such
method as may be prescribed by the Secretary of the Treasury.
From the date of redemption designated in any such notice, interest
on the bonds called for redemption shall cease. The principal and
interest of the bonds will be payable in United States gold coin of
the present standard of value.
Bearer bonds with interest coupons attached will be issued in
denominations of $100, $500, $1,000, $5,000, a,nd $10,000. Bonds
registered as to principal and interest will be issued in denominations of $100, $500, $1,000, $5,000, $10,000, $50,000, and $100,000.
Provision will be made for the interchange of bonds of different
denominations and of coupon and registered bonds and for the
' transfer of registered bonds, without charge by the United States,
under rules and regulations prescribed by the Secretary of the
Treasury.
The bonds 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 tiaxes, 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



244

REPORT ON T H E FINANCES

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 bonds will be acceptable to secure deposits of public moneys,
but do not bear the circulation privilege ana are not entitled to any
privilege of conversion.
APPLICATION, ALLOTMENT, AND PAYMENT

Applications will be received at the Federal Reserve Banks, as
fiscal agents of the United States. Banking institutions generally
will handle applications for subscribers, but only the Federal Reserve
Banks are authorized to act as official agencies.
The right is reserved to reject any subscription and to allot less
than the amount of bonds applied for and to close the subscriptions
at any time without notice. The Secretary of the Treasury also
reserves the right to make allotment in full upon applications for
smaller amounts, and to make reduced allotments upon, or to reject,
applications for larger amounts, and to make classified allotments and
allotments upon a graduated scale; and his action in these respects
will be final.
Payment at par and accrued interest for any bonds allotted must be
made on or before December 15, 1924, or on later allotment. Any
qualified depositary will be permitted to make payment by credit for
bonds allotted to it for itseli and its customers up to any amount for
which it shall be qualified in excess of existing deposits, when so notified by the°Federai Reserve Bank of its district, except upon subscriptions for which Third Liberty Loan 434 V^^ cent bonds. Treasury
notes of Series A-1925, or Treasury certificates of indebtedness of
Series TM-1925 are tendered in payment. Treasury notes of Series
A-1925, maturing March 15, 1925 (with coupon dated March 15,
1925, attached). Treasury certificates of indebtedness of Series
TD and TD2-1924, maturing December 15, 1924 (with coupon dated
December 15, 1924, detached), and Series TM-1925, maturing
March 15, 1925 (with coupon dated March 15, 1925, attached), and
Third Liberty Loan 434 per cent bonds, will be accepted at the Federal Reserve Banks at par, with an adjustment of accrued interest,
as of December 15, 1924, in payment for any Treasury bonds of 194454 now offered which shall he subscribed for and allotted. Third
Liberty Loan 434 per cent bonds in coupon form must have all
unmatured coupons attached, and if in registered form must be duly
assigned to the Secretary of the Treasury for redemption, in accordance with the general regulations of the Treasury Department
governing assignments.
As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions and to make
allotments thereon on the basis and up to the amounts indicated by
the Secretary of the-Treasury to the Federal Reserve Banks of the
respective districts. Allotment notices will be sent out promptly
upon allotment, and the basis of allotment will be publicly announced.
FURTHER DETAILS

Bonds will be delivered after allotment and payment. Pending
delivery of the definitive bonds. Federal Reserve/Bainks.may issue
interim receipts.
" '



SECRETARY^ OF THE TREASURY

245

Further details may be announced by the Secretary of the Treasury
from time to time, information as to which may be obtained from the
Treasury Department, Division of Loans and Currency, Washington, D. C , or from'any Federal Reserve Bank.
A.

W.

MELLON,

Secretary of the Treasury.
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,

December 3, 1924.
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, and to the fact that Third Liberty Loan
4J^ per cent bonds, Treasurv notes of Series A-1925, Treasury certificates of
Series TD and TD2-1924, and Series TM-1925, may be tendered in payment.
If you desire to purchase bonds of the above issue after the subscriptions close,
or bonds of any outstanding issue, you should apply to j^^our own bank, or, if it
can not obtain them for you, to the Federal Reserve Bank of your district, which
will then endeavor to fill your order in the market.
EXHIBIT

34

[Department Circular No. 354. Public Debt]

UNITED STATES OF AMERICA—FOUR PER CENT TREASURY BONDS
OF 1944-54. ADDITIONAL ISSUE, DATED AND BEARING INTEREST FROM DECEMBER 15, 1924, DUE DECEMBER 15, 1954,
REDEEMABLE AT THE OPTION OF THE UNITED STATES AT PAR
AND ACCRUED INTEREST O ^ AND AFTER DECEMBER 15, 1944,
INTEREST PAYABLE JUNE 15 AND DECEMBER 15

The Secretary of the Treasury invites subscriptions, at 100 J^ and
accrued interest, from the people of the United States, for an additional amount of four per cent Treasury bonds of 1944-54, of an
issue of gold bonds of the" United States authorized by the Act of
Congress approved September 24, 1917, as amended.
DESCRIPTION OF BONDS

The bonds now offered will be a part of the series of four per cent
Treasury bonds of 1944-54 issued pursuant to Department Circular
No. 349, dated December 3, 1924, as amended, are identical in all
respects" therewith and will be freely interchangeable. Such bonds
will be dated December 15, 1924, and will bear interest from that
date at the rate of four per cent per annum payable June 15 and
December 15 in each year on a semiannual basis. The bonds will
mature December 15, 1954, but may be redeemed at the option of
the United States on and after December 15, 1944, in whole or in
part, at par and accrued interest, on an}^ interest day or days, on four
months' notice of redemption given in such manner as the Secretary
of the Treasury shall prescribe. In case of partial redemption the
bonds to be redeemed will be determined by such method as may be
prescribed by the Secretary of the Treasury. From the date of redemption designated in any such notice, interest on the bonds called
for redemption shall cease. The principal and interest of the bonds
will be payable in United States gold coin of the present standard of
value.




246

REPOET ON THE FINANCES

Bearer bonds with interest coupons attached will be issued in
denominations of $100, $500, $1,000, $5,000, $10,000, and $100,000.
Bonds registered as to principal and interest will be issued in denominations of $100, $500, $1,000, $5,000, $10,000, $50,000, and $100,000.
Provision will be made for the interchange of bonds of different
denominations and of coupon and registered bonds and for the
transfer of registered bonds, without charge by the United States,
under rules and regulations prescribed by the Secretary of the Treasury. Coupon bonds delivered on allotment will have the coupons
due June .15, 1925, attached. Such coupons will cover six-monthsinterest from December 15, 1924, to June 15, 1925. Registered
bonds delivered on allotment will bear interest from December 15,.
1924.
The bonds 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^t) above.
The bonds will be acceptable to secure deposits of public moneys,,
but do not bear the circulation privilege and are not entitled to any
privilege of conversion.
APPLICATION, A L L O T M E N T , AND PAYMENT

Applications will be received at the Federal Reserve Banks, as
fiscal agents of the United States. Banking institutions generally
will handle applications for subscribers, but only the Federal Reserve
Banks are authorized to act as official agencies.
The right is reserved to reject any subscription and to allot less t h a n
the amount of bonds applied for and to close the subscriptions at
any time without notice. The Secretary of the Treasury also reserves
the right to make allotment in full upon applications for smaller
amounts, and to make reduced allotments upon, or to reject, applications for larger amounts, and to make classified allotments and
allotments upon a graduated scale; and his action in these respects
will be final.
Payment at 100^/^ and accrued interest froni December 15, 1924,
for any bonds allotted must be made on or before March 16, 1925,
or on later allotment. Any qualified depositary will be permitted to
make payment by credit for bonds 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 notes of Series A-1925, maturing March
15, 1925, and Treasury certificates of indebtedness of Series TM-1925,
maturing March 15, 1925, will be accepted at par,^ at the Federal
Reserve Banks, to be applied in part payment for any Treasury
bonds of 1944-54 now offered which shall be subscribed for and
allotted.



SECRETARY OF THE TREASURY

247

As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions and to make
allotments thereon on the basis and up to the amounts indicated by
the Secretary of the Treasury to the Federal Reserve Banks of the
respective districts. Allotment notices will be sent out promptly
upon allotment, and the basis of allotment will be publicly announced.
FURTHER DETAILS

Bonds will be delivered after allotment and payment. Pending
delivery of the definitive bonds, Federal Reserve Banks may issue
interim receipts.
Further details may be announced by the Secretary of the Treasury
from time to time, information as to which may be obtained from the
Treasury Department, Division of Loans and Currency, Washington,
D. C , or from any Federal Reserve Bank.
A. W.

MELLON,

Secretary of the Treasury.
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,

March 5, 1925.
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 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 iabove. If you desire to purchase, at the market
price, bonds of the above issue after the subscriptions close, or bonds of any
outstanding issue, you should apply to your own bank, or, if it can not obtain
them for you, to the Federal Reserve Bank of your district, which will then
endeavor to fill your order in the market.
E X H I B I T 35

LETTER OF SECRETARY OF THE TREASURY, DATED DECEMBER
3, 1924, TO BANKING INSTITUTIONS, ACCOMPANYING THE
OFFERING.OF FOUR PER CENT TREASURY BONDS OF 1944-54,
DATED DECEMBER 15, 1924
DECEMBER 3,

1924.

DEAR SIR:

The Treasury is offering for subscription at par an issue of 20-30
year bonds, bearing interest at 4 per cent, dated December 15, 1924,
maturing December 15, 1954, and redeemable at the option of the
United States on and after December 15, 1944. The offering is for
$200,000,000, or thereabouts, of cash subscriptions, with the right to
allot additional bonds to the extent that notes or certificates maturing
March 15, 1925, or Third Liberty Loan bonds are tendered in payment. This is the first offering of a long-term Government bond
since the issuance in October ox 1922 of the Treasury 43^ per cent
bonds of 1947-52, which are now quoted on the market at a very
substantial premium. I t is felt that the banks and the investing
public generally will welcome the opportunity to participate in a
long-term Treasury issue. The appkcation of March maturities or
Third Liberty Loan bonds in payment for the new Treasury bonds
will in part relieve the somewhat heavy financing otherwise necessary
in March, 1925, and on the maturity of the Third Liberties in September, 1928. Such exchanges mean no withdrawal of funds from
the investment market, but merely a change in the character of the
investment from short to long-term.



248

REPORT ON T H E FINANCES

The extent to which Government obligations in the hands of the
public have been reduced is remarkable. In the five and one-half
years since June 30, 1919, the public debt has decreased from $25,484,506,160.05 to $21,241,535,138.28, a total reduction of $4,242,971,021.77. This reduction has been effected, first, out of the sinking
fund, foreign repayments and other similar items, the total of which
for the current fiscal year is estimated at $471,806,401, and which
items are chargeable against the ordinary Government expenditures
before the budget will balance; second, from reduction in the working balances; and, third, from surplus.
Through the orderly and contmuous reduction in our national
debt out of the sinking fund and other items, upon which the public
may rely, Treasury obligations should increase in value. Their
supply is rapidly decreasing and the demand for such a type of investment has increased.
I am inclosing copy of tne formal circular offering these bonds. I
trust that I may have your assistance in making the present offering
a success, and that you wiU, as in the past, give your best efforts to
the distribution of the new bonds among investors.
Cordially yours,
.
A. W.

MELLON,

Secretary of the Treasury.
To the President
of the Bank or Trust Company addressed.
E X H I B I T 36
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 TO H O L D E R S OF
T H I R D L I B E R T Y LOAN BONDS, ACCOMPANYING THE OFFERING OF FOUR P E R CENT TREASURY BONDS OF 1944-54, DATED
DECEMBER 15, 1924
DECEMBER 3, 1924.
S I R (or MADAM) :

I am sending you herewith a copy of the official Treasury Depart-ment circular announcing a new offering of 4 per cent Treasury bonds
of 1944-1954. The subscription books open to-day and Third
Liberty Loan 434 P^r cent bonds, Treasury certificates of indebtedness of Series T D and TD2-1924, maturing December 15, 1924,
•Treasury notes of Series A-1925, and Treasury certificates of indebtedness of Series TM-1925, both maturing March 15, 1925, will
be accepted in payment on,the terms stated in the circular. The
new bonds will be 20/30 year bonds, dated December 15, 1924, maturr
ing December 15, 1954, and redeejgaable at the option of the United
States on and after December 15, 1944. The bonds will be issued in
both coupon and registered form in denominations of $100 and upwards. The Treasury is prepared to make delivery promptly upon
allotment and payment.
This offering of Treasury bonds affords a particularly favorable
opportunity to holders of Third Liberty Loan bonds maturing in
1928, and which are now a short-term security, to acquire a longterm Government bond on attractive terms. Third Liberty Loan
bonds tendered in payment, if in registered fortn, must be duly
assigned to ^^Secretary of the Treasury for Redemption^^ before some




SECRETARY OF T H E TREASURY

249

officer authorized to witness assignments of United States registered
bonds, in accordance with the general regulations of the Treasury
Department governing assignments. Coupon Third Liberty Loan
bonds must have aU unmatu^-ed coupons attached.
Holders of Third Liberty Loan bonds who wish to invest in the new
bonds should make prompt application through their own banks, or,
if desired, direct to the Federal Reserve Bank of the district.
Very truly yours,
A. W.

MELLON,

Secretary of the Treasury.
To the Holder of ^
Third Liberty Loan Bonds addressed.
EXHIBIT

37

(Department Circular No. 352. Public Debt. Supplementing Department Circular No. 307, of Oct. 9,
1922, and Department Circular No. 349, of Dec. 3,19241

TREASURY BONDS: BEARER BONDS IN THE DENOMINATION OF
$100,600
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,

Washington, March 5, 1925.
Treasury Department Circular No. 307, dated October 9, 1922,
ofi-ering for subscription and setting forth the terms of 4 ^ per cent
Treasury bonds of 1947-52, and Treasury Department Circular No.
349, dated December 3, 1924, off'ering for subscription and setting
forth the terms of 4 per cent Treasury bonds of 1944-54, provide in
each case for the issue of bearer bonds, with interest coupons attached,
in denominations of $100, $500, $1,000, $5,000, and $10,000.
Notice is hereby given that in addition to the aforementioned
denominations, bearer bonds of each of the above-described issues,
with interest coupons attached, in the denomination of $100,000,
will be available on and after March 16, 1925, in the case of the 4 per
cent Treasury bonds of 1944-54, and on and after April 16, 1925, in
the case of 4>i per cent Treasury bonds of 1947-52, and on and after
such respective dates will be issued on request in the regular course of
business on authorized transactions. The terms of the bearer bonds
of the $100,000 denomination herein authorized to be issued shall be
identical in all respects, except amounts, with the bearer bonds authorized under Department Circular No. 307 and Department Circular No. 349, respectively, and such bonds shall be subject to alLthe
provisions of said circulars, respectively.
The provisions of said Treasury Department Circulars Nos. 307
and 349 are hereby supplemented, in accordance with the above.




A.

W.

MELLON,

Secretary of the Treasury.

250

REPORT ON : T H E EXNAN^CES
EXHIBIT

38

[Department Circular No. 351. Public Debt]

TERMINATION

OF

CONVERSION PiClVILEGE—FOUR
LIBERTY BONDS

PER

CENT

TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,

Washington, December 29, 1924.
To the Holders of First Liberty Loan Converted 4 P^^ Cent Bonds of
1982-1947, and Second Liberty Loan 4 Per Cent Bonds of 1927-1942,
and Others Concerned:
1. Notice is hereby given pursuant to the provisions of Department
Circular No. 137, dated March 7, 1919, as amended and supplemented
June 10, 1919, and November 1, 1919, extending the conversion
privilege with respect to said 4 per cent bonds in accordance with
authority conferred by section 5 of the Victor}^ Liberty Loan Act,
approved March 3, 1919, that the privilege of converting First
Liberty Loan Converted 4 Per Cent Bonds of 1932-1947 (hereinafter
referred to as First 4's), and Second Liberty Loan 4 per cent Bonds
of 1927-1942 (hereinafter referred to as Second 4's), into 434 P^r
cent Liberty Bonds, wiU terminate at the close of business June 30,
1925, and thereafter may not be,exercised.
2. The provisions of Department Circular No. 137, dated March 7,
1919, as amended and supplemented June 10, 1919, and November 1,
1919, and of Department Circular No. 158, dated September 8, 1919,
governing the extension of the conversion privilege, will be without
effect with respect to transactions arising after the close of business
June 30, 1925, except that First 4's or Second 4's, forwarded for
conversion and actually in transit to the Treasury Department or to a
Federal Reserve Bank before midnight June 30, 1925, will be deemed
to have been presented before the termination of the conversion
privilege.
3. Under the provisions of said act, and of said Circular No. 137,
as amended, and said Circular No. 158, 4 per cent Liberty Bonds
)resented for conversion into 434 P^r cent Liberty Bonds are deemed,
or the purpose of computing the amount of interest payable, to be
converted on the dates for the payment of semiannual interest on the
respective bonds so presented for conversion next succeeding the
date of such presentation.
4. If First 4's are presented for conversion hereafter and before
June 15, 1925, 4 per cent interest will be paid to June 15, 1925, and
the bonds issued upon conversion will bear interest at 434 P^r cent
from June 15, 1925. If presented for conversion on or after June 15,
1925, and before the close of business June 30, 1925, 4 per cent interest
will be paid to December 15, 1925, and the bonds issued upon conversion will bear interest at 434 per cent from December 15, 1925.
5. If Second 4's are presented for conversion hereafter and before
May 15, 1925, 4 per cent interest will be paid to May 15, 1925, and
the bonds issued upon conversion will bear interest at 434 pci* cent
from. May 15, 1925. If presented for conversion oh or after May 15,
1925, and before the close of business June 30, 1925, 4 per cent interest
will be paid to November 15, 1925, and the bonds issued upon conversion will bear interest at 434 per cent from November 15, 1925.

f




SECRETARY OF THE'TREASURY

251

6. The right is reserved to make from time to time any supplementary or amendatory rules and regulations governing the termination of the conversion privilege as herein provided.
GARRARD B . WINSTON,

Acting Secretary of the Treasury.
EXHIBIT

39

[Department Circular No. 353. Public Debt]

UNITED STATES OF AMERICA—THREE P E R CENT TREASURY
CERTIFICATES OF INDEBTEDNESS. SERIES T D - 1 9 2 5 , DATED AND
BEARING I N T E R E S T F R O M M A R C H 16, 1925, DUE D E C E M B E R
15, 1925

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 of Series TD-1925, dated and
bearing interest from March 16, 1925, payable December 15, 1925,
with interest at the rate of three per cent per annum, payable on a
semiannual basis.
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 June 15, 1925, and December 15, 1925.
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 (&) above.
The 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 payment of income and profits taxes payable at the
maturity of the certificates. The certificates of this series will be
acceptable to secure deposits of public moneys, but will not bear 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. The Secretary of the Treasury
also reserves the right to make allotment in full upon applications
for smaller amounts, and to make reduced allotments upon, or to
reject, applications for larger amounts, and to make classified allotments and allotments upon a graduated scale; and his action in these
respects will be final. Allotment notices will be sent out promptly
upon allotment, and the basis of the allotment will be publicly
announced.

E




252

REPORT ON THE FINANCES

Payment at par and accrued interest for certificates allotted must
be made on orl)efore March 16, 1925, 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 iqualified in excess of existing deposits,
when so notified by the Federal Reserve Bank of its district.
Treasury notes of Series A-1925, maturing March 15, 1925, and
Treasury certificates of indebtedness of Series TM-1925, maturing
March 15, 1925, will be accepted at par, in payment for any certificates
of the Series TI)-1925 now offered which shall be subscribed for and
allotted, with an adjustment of the interest accrued, if any, on the
certificates of Series TD-1925 so paid for.
As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions and to make
allotments on the basis and up to the 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,
O F F I C E OF THE SECRETARY,

March 5, 1925.
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, and to the fact that Treasury notes
of Series A-1925 and Treasury certificates of Series TM-1925 may be tendered
in payment. If you desire to purchase, at the market price, certificates of the
above issue-after the subscriptions close, or certificates of any outstanding issue,
you should apply to your own bank, or, if it can not obtain them for you, to the
Federal Reserve Bank of your district, which will then'endeavor to fill your order
in the market.
EXHIBIT
[Department Circular No.[359.

40
Public Debt]

UNITED STATES OF AMERICA—THREE PER CENT TREASURY
CERTIFICATES OF INDEBTEDNESS. SERIES T J - 1 9 2 6 , DATED
AND BEARING INTEREST FROM JUNE 15, 1925, DUE JUNE 15,
1926

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 of Series TJ-1926, dated and
bearing interest from June 15, 1925, payable June 15, 1926, with
interest at the rate of three 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, 1925, and June 15,
1926.
The certificates of said series shall be exempt, both as to principal
and interest, from all taxation now or heireafter 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 inherit


SECRETARY, OF

THE TREASURY

253

ance 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. The
interest oh 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 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 payment of income and profits taxes payable at the
maturity of the certificates. The certificates of this series w^ill be
acceptable to secure deposits of public moneys, but will not bear 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. The Secretary of the Treasury also reserves
the right to make allotment in full upon applications for smaller
amounts, and to make reduced allotments upon, or to reject, applications for larger amounts, and to make classified allotments and
allotments upon a gi^aduated scale; and his action in these respects
will be final. Allotment notices will be sent out promptly upon^ allotment, and the basis of the allotment will be publicly announced.
Payment at par and accrued interest for certificates allotted-must
be made on or before June 15, 1925, 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 notes
of Series C-1925, maturing June 15, 1925, will be accepted at par, in
payment for any certificates of the Series TJ-1926 now ofi'ered which
shall be subscribed for and allotted, with an adjustment of the interest
accrued, if any, on the certificates of Series TJ-1926 so paid f^r.
As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive, subscriptions and to make allotments on the basis and up to the amounts.indicated by the Secretary
of the Treasury to the Federal Reserve Banks of the respective
districts.
!

A. W. M E L L O N ,

Secretary of the Treasury.
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,

June 8, 1925.
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, at the market price, certificates of the above issue after the subscriptions close, or certificates of any outstanding issue, you should apply to your own bank, or, if it can not obtain them
for you, to the Federal Reserve Bank of your district, which will then endeavor
to fill your order in the market.



254

REPORT ON T H E FINANCES
EXHIBIT

41

[Department Circular 360. Public Debt]
U N I T E D STATES O F A M E R I C A — T H R E E AND O N E - Q U A R T E R P E R
CENT TREASURY CERTIFICATES OF INDEBTEDNESS.
SERIES
T J 2 - 1 9 2 6 , DATED AND B E A R I N G I N T E R E S T F R O M S E P T E M B E R
15, 1925, DUE JUNE 15, 1926

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 of Series TJ2-1926, dated and bearing interest from September 15, 1925, payable June 15, 1926, with
interest at the rate of three and one-quarter per cent per annum,
payable on a semiannual basis.
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, 1925, and June 15, 1926.
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. 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 (&) above.
The 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 payment of income and profits taxes payable at the
maturity of the certificates: ' The certificates of this series will be
acceptable to secure deposits of public moneys, but will not bear 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. The Secretary of the Treasury
also reserves the right to make allotment in full upon applications
for smaller amounts, and to make reduced allotments upon, or to
reject, applications for larger amounts, and to make classified allotments and allotments upon a graduated scale; and his action in these
respects will be final. Allotment notices will be sent out promptly
upon allotment, and the basis of the allotment will be publicly
announced.
Payment at par and accrued interest for certificates allotted must
be made on or before September 15, 1925, 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 customei^ up to any amount



SECRETARY OF THE TREASURY

255

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-1925, maturing September 15,
1925, will be accepted at par, in payment for any certificates of the
Series TJ2.-1926 now offered which shall be, subscribed for and allotted, with an adjustment of the interest accrued, if any, on the certificates of Series TJ2-1926 so paid for.
As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions and to make allotments on the basis and up to the 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 8, 1925.
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, at the market price,
certificates of the above issue after the subscriptions close, or certificates of any
outstanding issue, you should apply to your own bank, or, if it can not obtain
them for you, to the Federal Reserve Bank of your district, which will then
endeavor to fill your order in the market.
t)

EXHIBIT

42

[Amendment to Department Circular No. 308, dated November 9, 1922. Public Debt]

REDEMPTION OF WAR-SAVINGS CERTIFICATES, SERIES OF

1918

TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,

Washington, November 5, 1924To Holders of War-Savings Certificates of the Series of 1918, Postmasters, Federal Reserve Banks, and others Concerned:
1. Hereafter unregistered War-Savings Certificates of the Series
of 1918 will be paid only by the Treasurer of the United States at
the Treasury Department, Washington, D. C , and Department
Circular No. 308, dated November 9, 1922, is hereby amended
accordingly pursuant to the right reserved in Paragraph 5 thereof.
2. The Secretary of the Treasury may at any time or from time
to time prescribe supplemental or amendatory rules and regulations governing the redemption of War-Savings Certificates of the
Series of 1918.




A. W.

MELLON,

Secretary of the Treasury.

256

REPORT ON THE FINANCES
E X H I B I T 43
[Amendment to Department Circular No. 330, dated November 16,1923. Public Debt}

REDEMPTION OF WAR-SAVINGS CERTIFICATES, SERIES OF 1919
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,

Washington, November 5, 1924*
To Holders of War-Savings Certificates of the Series of 1919, Postmasters. Federal Reserve Banks, and others Concerned:
1. Hereafter • unregistered War-Savings Certificates of the Series
of 1919 will be paid only by the Treasurer of the United States at
the Treasury Department, Washington, D. C , and Department
Circular No. 330, dated November 15, 1923, is hereby amended
accordingly pursuant to the right reserved in Paragraph 5 thereof.
2. The Secretary of the Treasury m a y at any time or from time
to time prescribe supplemental or amendatory rules and regulations
governing the redemption of War-Savings Certificates of the Series
of 1919.
A. W.

MELLON,

Secretary of the Treasury.
EXHIBIT

44

P A Y M E N T S T O C A R R I E R S F R O M NOVEMBER 1, 1924, TO OCTOBER

31, 19J25, INCLUSIVE, PROVIDED FOR IN SECTION 2 0 4 OF THE
TRANSPORTATION ACT OF 1920, AS AMENDED, FOR REIMBURSEMENT OF DEFICITS ON ACCOUNT OF FEDERAL CONTROL
Carrier
Birmingham, Columbus.& St. Andrews R. R.,
receiver
Blaney & Southern Ry. Co
Butte, Anaconda & Pacific Ry. Co
California, Shasta & Eastern Ry. Co
Delaware Valley Ry. Co
La Crosse & Southeastern R y .
Ligonier Valley R. R. Co
New Haven & Dunbar R. R. Co
Newport & Sherman's Valley R. R. Co
Oakdale & Gulf Ry. Co
Pacific & Eastern Ry. Co
•Salt Lake, Garfield & Western Ry. Co
Saratoga & Encampment Uy. Co
St. Louis & Hannibal R. R. Co
Tooele Valley Ry. C o . . . .
Trinity & Brazos Valley Ry
Wyandotte Terminal R. R. Co
Yreka R. R. Co
Total
Less refund of overpayments:
-.
s
Randolph & Cumberland Ry. Co. (part)..

Partial
payments

Final
payments

$1,432. 47
6, 279.84
487,116. 31
13,905. 92
1, 709. 55
4, 515. 82
12, 538.17
71.10
8,138. 71
11,887.15
3, 670.87
29, 230. 51
4, 291. 62
7, 894. 73
30, 343. 81
27, 665. 22
65, 305.15
9,801. 07
725, 798. 02

Deductions i

$556. 74
8,138. 71
'3,"670.'87
4, 000. 00
"27,'665.'22'
44, 031. 54

414.00

Payments from Nov. 1, 1924, to Oct. 31, 1925,
725,384. 02
44,031.54
inclusive
Payments to Oct. 31, 1924.
$2, 207, 651. 41 7, 227, 703. 58 1,855, 738. 59
Total payments to Oct. 31, 1925.

Total
certified

$1,432. 47
6,279. 84
487,116. 31
13,905.92
1, 709. 55
4, 515.82
12, 538.17
71.10
8,138. 71
11,887.15
3, 670.87
29, 230. 51
4,291. 62
7,894. 73
30,343. 81
27, 665. 22
65,305.15
9,801.07
725, 798. 02
414. 00
725, 384. 02
9,435, 354. 99

2,207, 651. 41 7, 953, 087. 60 1,899, 770.13 10,160, 739. 01

1 Amount due from the carrier to the President (as operator of the transportation systems under Federal
control) on account of traffic balances or other indebtedness.




257

SECRETARY OF THE TREASURY
EXHIBIT

45

PAYMENTS TO CARRIERS FROM NOVEMBER 1, 1924, TO OCTOBER
3 1 , 1925, INCLUSIVE, UNDER THE GUARANTY PROVIDED FOR
IN SECTION 209 OF THE TRANSPORTATION ACT OF 1920, AS
AMENDED, AND PAYMENTS BY CARRIERS TO THE UNITED
STATES UNDER THE SAME SECTION
Carrier

Advances

Partial

Alexandria & Western Ry. Co
American Railway Express Co
Bath & Hammondsport R. R. Co.
Belington & Northern R. R. Co
Chicago & Alton R. R. Co., receiver
Colorado & Southern Ry. Co., including
its subsidiaries, the Fort Worth &
Denver City Ry. Co. and Wichita
Valley Ry. Co
Cooperstown & Charlotte Valley R. R.
Co
Cumberland Valley & Martinsburg R. R.
Co
Delaware & Hudson Co
Delaware, Lackawanna & Western R. R.
Co. and its .subsidiaries, the Lackawanna & Montrose R. R.Co., Harlem
Transfer Co., and Sussex R.R. Co
Detroit,.Bay City & Western R. R
Detroit, Toledo & Ironton R. R. Co....
Detroit & Toledo Shore Line R. R. Co_.
Gainesville Midland Ry. Co._
Grand Rapids & Indiana Ry. Co
Hocking Valley Ry. Co._
Kansas City Southern Ry. Co. and its
subsidiaries, Arkansas Western Ry.
Co., the Porteau Valley R. R. Co., and
Texarkana & Fort Smith Ry. Co
Muncie & Western R. R. Co
New York, Philadelphia & Norfolk R. R.
Co
Pennsylvania R. R. Co
Pittsburgh, Cincinnati, Chicago & St.
Louis R. R. Co
Railway Transfer Co. of the City of Minneapolis
Schoharie Valley Ry. Co
Toledo, St. Louis & Western R. R. Co...
Trinity & Brazos Valley R. R
Trinity Valley Southern R. R. Co
Wheeling Terminal Ry. Co
Less refund of overpayment b y Atlanta & St. Andrews
Bay Ry. Co. (part)
$18,385.80
Gulf, Texas & Western
Ry. Co
12,439.57
Louisiana Bridge & Terminal Ry. Co
142,827.01
Repayment b y International & Great Northern Ry.
Co.,j receiver, on. account of part
payment of amount due receiver
from Pierce Oil Corporation.......
Payments to carriers from Nov. 1, 1924
to Oct. 31, 1925
Payments to Oct. 31, 1924,. inclusive
$263,935,874. 00
i9, 441,912.14
Total payments to Oct. 31, 1925,
inclusive
263,935,874.00 169, 441,912.14

Final i
$2,997.65
2,010,788.70
4,150. 68
2,621.92
526,086.83

505,035.911
4,484.41

Total
$2,997.65
2,010,788.70
4,150.68
2,62L92
526,085.83

605,035.91 '
4, 484. 41

15,017.66
438,028.85

15,017.66
438,028.85

45,304.69
52,779.99
60, 621.77
148,685.95
10,149. 63
772,464. 32
453, 630.97

45,304.69
52,779.99
60,621.77
148,585.95
10,149. 63
772, 464. 32
453, 630.97

362,453.02
4, 226.13.

362,453. 02
4, 226.13

317,745.18
12, 250,596. 39

317,745.18
12,250,696.39

6, 421, 446. 24

6,421, 446. 24

21, 913.00
274.94
50,774.09
•26,576.44
866.01
31, 205.18

21,913.00
274.94
50, 774. 09
26,576. 44
866. 01
31, 205.18

24, 540,825.45

24, 540,825. 45

173,652. 38

173,652.38

22,951.13

22,951.13

24, 344, 221. 94 24, 344, 221.94
74,139,899. 44 507, 517, 685. 58
98, 484,121. 38 531,861,907. 52

1 Amounts in this column represent balances due and paid after talking into account advances and
partial payments previously made.
PAYMENTS BY CARRIERS TO T H E UNITED STATES

Payments by carriers to the United States from November 1, 1924 to October
31, 1925, under the provisions of section 209 <d) of the transportation act, 1920,
as amended, on account of excess earnings during the guaranty period:
Sandy VaUey & Elkhorn Ry. Co
.-..
$189, 944. 79
Payments to Oct. 31, 1924__.
256, 130. 50
446,075. 29
60501—FI 1925t-—17



258

REPOR^T ON THE FINANCES
E X H I B I T 46

LOANS TO CARRIERS UNDER SECTION 210 OF THE TRANSPORTATION ACT OF 1920, AS AMENDED, AND REPAYMENTS ON
SUCH LOANS FROM NOVEMBER 1, 1924, TO OCTOBER 3 1 , 1925,
INCLUSIVE, WITH LOANS OUTSTANDING OCTOBER 3 1 , 1924,
AND OCTOBER 3 1 , 1925
Carrier
Akron, Canton & Youngstown Ry. Co.
Alabama, Tennessee-& Northern R. R.
Corporation
..'
1
Ann Arbor R. R. C o . . . . .
Aransas Harbor Terminal R y . .
Atlanta, Birmingham & Atlantic Ry. Co
, Baltimore & Ohio R. R. Co
Bangor & Aroostook R. R. Co
Birmingham & Northwestern Ry. Co...
Boston & Maine R. R . .
Central New England Ry. Co.
Central Vermont Ry. C o . . .
Charles City Western Ry. Co
Chesapeake & Ohio Ry. Co.*
Chicago & Eastern Illinois R. R. Co.,
receiver
Chicago Great Western R. R. Co.
Chicago,Indianapolis & Louisville Ry.Col
Chicago, Milwaukee & St. Paul Ry. Co.
Chicago, Rock Island & Pacific Ry. Co.
Chicago & Western Indiana R. R. Co..
Cisco & Northeastern Ry. Co
Cowlitz, Chehalis & Cascade Ry. Co...
Cumberland & Manchester R. R. Co...
Des Moines & Central Iowa R. R. Co.
(formerly the Inter-Urban Ry. Co.)...
Erie Railroad Co
Fernwood, Columbia & Gulf R. R. Co..
Fort Dodge, Des Moines & Southern
R. R. Co
Fort Smith & Western R. R. Co., receiver
Gainesville & Northwestern R. R. Co...
Georgia & Florida Ry., receivers.
Greene County R. R. Co
Gulf, Mobile & Northern R. R. Co
Hocking Valley Ry. Co
Kansas City, Mexico & Orient R. R. Co.,
receiver
Kansas City Terminal Ry. Co
Lake Erie, Franklin & Clarion R. R. Co.
Louisville & Jefifersonville Bridge &
Railroad Co
Maine Central R. R. Co
Minneapolis & St. Louis R. R. Co
Missouri & North Arkansas Ry. Co
Missouri Pacific R. R. Co
National Railway Service Corporation
account:
Baltimore & Ohio R. R. Co
Bangor & Aroostook R. R. Co
Minneapolis & St. Louis R. R. Co..
New Orleans, Texas & Mexico R
R.Co
Wheeling & Lake Erie Ry. C o . . . .
New York, New Haven & Hartford R
R.Co
Norfolk Southern R. R. C o . . i
Salt Lake & Utah R. R. C o . . .
Seaboard Air Line Ry. Co
Seaboard Bay Line Co
Shearwood Ry. Co
Tennessee Central Ry. Co
Toledo, St. Louis & Western R. R. Co.
Virginia Blue Ridge Ry. C o . .
Virginia Southern R. R. Co
Waterloo,Cedar Falls & Northern Ry.Co.j
Western Maryland Ry. Co
Wheeling & Lake Erie Ry. Co
Wichita Northwestern Ry. Co
Wilmington, Brunswick & Southern R.
R.Co
Total
,
.Loans and repayments to Oct. 31,1924.




Loans made
from Nov. 1,
1924, to Oct.
31, 1925

• Loans
outstanding
Oct. 31, 1924

Repayments
from Nov. 1,
1924,to Oct.
31, 1925

$212, 000. 00

$212, 000. 00

420, 250. 00
370, 000. 00
50, 000. 00
180, 000. 00
2, 900.000. 00
144, 000. 00
75, 000. 00
21, 705,479. 00
300, 000. 00
154, 000. 00
140, 000. 00
8,073, 023. 97

.27, 500. 00
. 80,000.00

Loans
outstanding
Oct. 31, 1925

785, 000. 00
2, 205,373. 00
155,000. 00
35, 000, 000. 00
7,862, 000. 00
7,616,000.00
236,450. 00
45,000. 00
375, 000. 00

60, 000. 00
75,000. 00
13, 000. 00

• $392,750. 00
290, 000. 00
50, 000.00
180,000.00
2,900, 000. 00
84, 000. 00
21, 705,479. 00
300,000.00
141, 000. 00
140, 000. 00
8, 073, 023.97
785, 000. 00
2, 205, 373. 00
155, 000. 00
35,000,000.00
7,862, 000. 00
7,616,000. 00
236, 450. 00

45,000. 00
375,000.00

633, 500. 00
11, 574,450. 00
20, 000. 00

633,500.00
11, 574,450. 00
20,000.00

200, 000. 00

200,000. 00

156,000. 00
75,000. 00
792, 000. 00
42,000. 00
1,433,500. 00
1, 665,000. 00

156, 000. 00
75,000. 00
792, 000. 00
36, 000. 00

2, 500. 000. 00
580, 000. 00
17,500. 00
147, 000. 00
2, 373, 000. 00
1, 382, 000. 00
3, 500, 000. 00
5,469, 760. 00
3,986,666. 67
42,480. 00
372, 730. 22

6, 000. 00
1,433,500.00

1, 665,000.00
2, 500, 000. 00
580,000.00
2, 500. 00

80,000. 00
3,986, 666. 67
42,480. 00
10, 090. 20

734,413. 76
3,188,846.46

734,413. 76
86,348.16

27, 230,000. 00
1,561, 700. 00
872, 600. 00
14,957, 400. 00
3, 925,000. 00
29, 000. 00
1, 500,
000. 00
554, 000. 00
106, 000. 00
38, 000. 00
1,260, 000. 00
2,822,800. 00
3,460, 000. 00
381, 750. 00

100,000.00
46, 600. 00

90, 000. 00
188,677,673. 08

503, 500. 00
314, 000. 00
46,000. 00

100,000. 00
1,400,000.00

15,000.00
147, 000. 00
2,373, 000. 00
1, 382,000. 00
3,500, 000. 00
5,389,760.00

362,640. 02
3,102,498. 30
27,130, 000. 00
1, 515,100. 00
872, 600. 00
14,453, 900.00
3,611, 000. 00
29, 000. 00
1, 500,
000. 00
508, 000. 00
106, 000.00
38, 000. 00
1,260, 000. 00
2, 722,800. 00
2,060, 000. 00
381, 750. 00

90,000. 00
9,984, 598. 79 178, 693, 074. 29
$350, 600, 667. 00 161,922, 993. 92
I 350,600,667.00 171,907, 592. 71

SECRETAEY OF T H E TREASURY
EXHIBIT

259

47

FEDERAL CONTROL OF RAILROADS—NET CASH EXPENDITURES
ON ACCOUNT OF RAILROADS AND RAILROAD OBLIGATIONS AS
OF JUNE 30, 1925
Fiscal
Fiscal
Fiscal
Fiscal
Fiscal
Fiscal
Fiscal
Fiscal

year
year
year
year
vear
year
year
year

1918
1919._>1920
1921
1922 (net credit)
1923
1924 (net credit)
1925 (net credit)

j -

.

Deduct; Expenditures (net) for loans under sec. 210
Add: Interest collected on loans under 210 deducted from
above
figures
----.
Deduct (railroad obligations held June 30,
1925):
Sec. 7 (Federal control act)
$25, 950, 000. 00
Equipment trust notes (act Nov. 19,
1919)
1, 253, 000. 00
Sec. 207 (transportation act)
108, 034, 000. 00
Net cash cost of Federal control to June 30,1925

$123, 263, 996. 17
358, 795, 274. 60^
1, 036, 672, 157. 53
730, 711, 669. 98
139, 469, 450. 82
1^, 847, 306. 11
58, 631, 367. 78
136,706,428.45
1, 929, 483, 157. 34
181, 063, 324. 29
1, 748, 419, 833. 05
51,500,950. 87
1, 799, .920, 783. 92

135, 237, 000. 00*
1, 664, 683, 783. 92:

NOTE .^Credits have been made against expenditures listed
above for interest collected by the Treasury to June 30,
1925:
Sec. 7 obhgations (Federal control act)
19, 569, 522. 92'
Equipment trust notes (act Nov. 19, 1919)
. 45, 105, 129. 02
Sec. 207 obhgations
_.
39, 395, 939. 45104, 070, 591. 39/
OCTOBEB 19, 1925.




260

REPORT ON THE FINANCES
EXHIBIT,

48

SECURITIES OWNED BY THE UNITED STATES GOVERNMENT
[Compiled from latest reports received by the Treasury, June 30,19251

Bonds of foreign governments received
under agreements for funding of their
debts to the United States pursuant to
the acts of Congress approved Feb. 9,
1922, Feb. 28, 1923, Mar. 12, 1924,
May 23, 1924, and Dec. 22, 1924:
Great Britain
$4, 554, 000, 000. 00
Finland
8, 910, 000. 00
Hungary
1, 972, 883. 00
Poland
-178, 560, 000. 00
Total
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): ^
BelgiumCzechoslovakia
France
Greece
Italy
Liberia
Kumania
Russia
Serbia
Total
Foreign obligations received from the
Secretary of War on account of sale
of surplus war supplies: 1
Belgium
Czechoslovakia
Esthonia
France
Latvia
Lithuania
Nicaragua
Rumania
Russia
1
Serbs, Croats, and Slovenes

$4, 743, 442, 883. 00

347, 210, 808. 68
61, 974, 041. 10
2, 933, 174, 898. 71
15, 000, 000. 00
1, 647, 869, 197. 96 .
26, 000. 00
23, 205, 819. 52
187, 729, 750. 00
26, 059, 865. 40
5, 242, 250, 381. 37

29, 818, 761. 38
20, 604, 302. 49
12,213,377 88
407,341,145.01
2, 521, 869. 32
4, 159, 491. 96
100,590.28
12,922,675.42
406, 082. 30
24, 978, 020. 99

Total
_'
Foreign obligations received from the
American Relief Administration on
account of relief pursuant to act approved Feb. 25, 1919:1
Armenia
.
Czechoslovakia
Esthonia
Latvia
Lithuania
Russia
Total
»The figures do not include interest accrued and unpaid.




515, 066, 317. 03

\
8, 028, 412. 15
6, 428, 089. 19
1, 785, 767. 72
2, 610, 417. 82
822,-136. 07
4, 465, 465. 07
-

_---

24, 140, 288. 02

SECRETARY OF THE TREASURY

261

Securities owned by the United States Government—Continued
Foreign obligations received from the
United States Grain Corporation on
account of final liquidation given for
relief pursuant to act approved Mar.
30,1920:1
Armenia
Austria
Czechoslovakia
_
TotaLCapital stock of War Emergency Corporations :
Capital stock of the Emergency
Fleet Corporation
Less cash deposited with the
Treasurer of the United
States to the credit of the
corporation

- $3,931,505.34
24, 055, 708. 92
2, 873, 238. 25
----

50, 000, 000. 00

44,419,554.19
—
Capital stock of the Hoboken Manufacturers Railroad Co
Capital stock of the United States
Housing Corporation, issued-_-_
70,000,000.00
Less amount retired plus cash
deposits covered into Treasury under act approved
July 11, 1919
30, 117, 119. 46
Capital stock of United States
Sugar EquahzationBoard, I n c . • Offset by cash deposited with
the Treasurer of the United
States to credit of the corporation

400, 000. 00

39, 882, 880. 54

12, 797, 160. 19

Obligations of carriers acquired under section 7 of the Federal
control act. approved Mar. 21, 1918, as amended: ^
Boston & Maine Railroad
.
Equipment trust 6 per cent gold notes,
acquired by Director General of
Railroads pursuant to Federal control act of Mar. 21, 1918, as amended,
and act approved Nov. 19, 1919, to
provide for the reimbursement of the
United States for motive power, cars,
and other equipment ordered for carriers under Federal control: ^
Atlanta, Birmingham & Atlantic
Railway Co
917, 000. 00
Minneapolis & St. Louis Railroad
Co
336, 000. 00
----

5,580,445.81

5, 000, 000. 00

Capital stock of the United States Spruce Production
Corporation
Capital stock of the War Finance
Corporation outstanding
1,000,000.00
Offset by cash deposited with
the Treasurer of the United
States to credit of War
Finance Corporation
.__
14, 399, 565. 88

Total

$30,860,452.51

10,000, 000. 00

25, 950, 000. 00

1, 253, 000. 00

2 This amount does not include securities purchased by the Director General of Railroads under the
provisions of section 12 of the Federal control act, approved March 21, 1918.
8 The notes are in series, which mature, respectively, on the 15th day of January in various years up to
1935.




262

REPORT ON T H E FINANCES

Securities owned by the United States Government—^Continued
Obligations of carriers acquired pursuant to section 207 of the transportation act approved Feb. 28, 1920,
.as amended:
Ann Arbor Railroad Co_ _
Boston & Maine Railroad
Chicago & Eastern Illinois' Railroad Co
Chicago Great Western Railroad
Co
.Chicago, Milwaukee & St. Paul
Railway Co
Erie Railroad Co. _Kansas, Oklahoma & Gulf Railway
Co
Maine Central Railroad Co
Minneapolis & St. Louis Railroad
Co
-New York, New Haven & Hartford
Railroad Co--__New York, Susquehanna & Western Railroad Co
Norfolk Southern Railroad Co
Seaboard Air Line Railway Co
Washington, Brandywine & Point
Lookout Railroad Co
Waterloo, Cedar Falls & Northern
Railway Co
Western Maryland Railway Co_ ._
Wheehng & Lake Erie Railway CoTotal
.
Obligations of carriers acquired pursuant to section 210 of the transportation act approved Feb. 28, 1920, as
amended:
Alabama, Tennessee & Northern
Railroad Corporation.
Ann Arbor Railroad Co
Aransas Harbor Terminal RailwayAtlanta, Birmingham & Atlantic
Railway Co
Baltimore & Ohio Railroad Co
Bangor & Aroostook Railroad Co.
Boston & Maine RailroadCentral New England Railroad Co.
Central Vermont Railway Co
Charles City Western Railway Co.
Chesapeake & Ohio Railway Co—
Chicago & Eastern Illinois Railroad Co., receiver of
Chicago Great Western Railroad
Co
Chicago, Indianapolis & Louisville
Railway Co
Chicago, Milwaukee & St. Paul
Railway Co
Chicago, Rock Island & Pacific
Railway Co
Chicago & Western Indiana Railroad Co
Cisco & Northeastern Railway Co.
Cowlitz, Chehalis & Cascade Railway Co
-




$525, 000. 00
1,030,000.00
3,425,000.00
950, 000. 00
20, 000, 000. 00
8,725,000.00

,

1, 629, 000. 00
750,000.00
1,250,000.00
64, 000, 000. 00
100,000.00
200, 000. 00
2, 000, 000. 00
50,000.00
500, 000. 00
2, 000, 000. 00
900, 000. 00
$108, 034, 000. 00

392, 750. 00
310,000.00
50, 000. 00
180,000. 00
2, 900, 000. 00
132, 000. 00
21, 706, 479. 00
300, 000. 00
154, 000. 00
140, 000. 00
8, 073, 023. 97
785,000.00
2,205,373.00
165, 000. 00
36,000,000.00
7,862,000. 00
7,616,000. 00
236, 450. 00
45, 000. 00

SECRETARY OF THE TREASURY

263

Securities' owned by the United States Government—Continued
Obligations of carriers acquired pursuant to section 210 of the transportation act approved Feb. 28, 1920, as
amended—Continued.
Cumberland & Manchester Railroad Co
._
Des Moines & Central Iowa Railroad, formerly the Inter-Urbaii
Railway Co
Erie Railroad Co
Fernwood, Columbia & Gulf Railroad Co
Fort Dodge, Des Moines & Southern Railroad Co
Fort Smith & Western Railroad
Co., receiver of the
Gainesville & Northwestern Railroad Co
-.
Georgia & Florida Railway, receivers of
Greene County Railroad Co
Hocking Valley Railway Co.
Kansas City, Mexico & Orient
Railroad Co., receiver of the
Kansas City Terminal Railway Co.
Lake Erie, Franklin & Clarion
Railroad Co
-.--._.
Louisville & Jeffersonville Bridge
& Railroad Co
Maine Central Railroad Co
Minneapolis & St. Louis Railroad
Co
Missouri & North Arkansas Railway Co
Missouri Pacific Railroad Co_
National Railway Service Corporation
.
New York, New Haven & Hartford
Railroad Co- Norfolk Southern Railroad Co
Salt Lake & Uta)h Railroa^d Co
Seaboard Air Line Railway Co
Seaboard Bay Line Co
Shearwood Railway Co
Tennessee Central Railway C o - _ Toledo, St. Louis & Western Railroad Co., receiver of
Virginia Blue Ridge Railway Co-_
Virginia Southern Railroad Co
Waterloo, Cedar Falls & Northern
Railway Co
.
Western Maryland Railway Co___
Wheehng & Lake Erie Railway Co.
Wichita, Northwestern Railway
Co
._Wilmington, Brunswick & Southern Railroad Co
--

&
$375,000.00

-

633,500.00
11, 574, 460. 00
20, 000. 00
200,000. 00
156,000.00
75,000.00
792, 000. 00
42, 000. 00
1, 665, 000. 00
2, 500, 000. 00
680, 000. 00
16,260.00
147, 000. 00
2, 373, 000. 00
1,382,000.00
3,600,000.00
6, 389, 760. 00
3,465,138.32
27, 230, 000. 00
1, 515, 100. 00
872, 600. 00
14, 453, 900. 00
3, 768, 000. 00
29,000.00 .
1, 500, 000. 00
508, 000. 00
106, 000. 00
38, 000. 00
1, 260, 000. 00
2, 722, 800. 00
3, 460, 000. 00
381,750.00
90,000.00

Total
Capital stock of the Panama Railroad Co
Capital stock of the Inland Waterways Corporation (acquired pursuant to the act approved June 3, 1924)




$181, 063, 324. 29
7, 000, 000. 00
1, 500, 000. 00

264

REPORT ON THE FINANCES
Securities owned by the United States Government-^Continned

Capital stock of the Federal land banks
(on basis of purchases, less repay" ments to date):
^
Springfield, Mass
Baltimore, Md
Columbia, S. C
St. Louis, Mo
Berkeley, Calif. _ _

,

Total.
.
Capital stock of Federal interniediate
credit banks, acquired pursuant to
the ''Agricultural credits act of 1923,''
approved Mar. 4, 1923:
Springfield, Mass
Baltimore, Md..__
1Columbia, S. C
Louisville, Ky
New Orleans, La
St. Louis, Mo
St. Paul, Minn—-Omaha, Nebr
Wichita, Kans
Houston, Tex-_
Berkeley, Calif
Spokane, Wash

$470, 900. 00
342, 955. 00
208, 285. 00
76,415.00
414, 490. .00
$1, 513, 045. 00

2, 000, 000. 00
2, 000, 000. 00
2, 000, 000. 00
2, 000, 000. 00
2, 000, 000. 00
2, 000, 000. 00
2,000,000.00
2, 000, 000. 00
2, 000, 000. 00
2, 000, 000. 00
2,000,000.00
2, 000, 000. 00

Total
Federal farm loan bonds, acquired pursuant to act approved Jan. 18, 1918:
Federal Farm Loan 43^ per cent bonds
Securities received by the Secretary of War on account of
sales of surplus war supplies
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

24, 000, 000. 00
88, 885, 000. 00
5, 080, 992. 06
9, 482, 025. 57
41, 084, 955. 70
11, 106,469, 990. 90

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
...
Total—

1, 600, 000. 00
1, 882, 833. 23
3,482,833.23

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 allowance 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 establishments. 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 Alien Property Custodian, the United States Government life insurance fund, and other
similar trust funds).




E X H I B I T 49
OBLIGATIONS OF FOREIGN GOVERNMENTS HELD B Y T H E UNITED STATES TREASURY TOGETHER W I T H
I N T E R E S T A C C R U E D AND R E M A I N I N G U N P A I D T H E R E O N AS O F T H E LAST I N T E R E S T P E R I O D P R I O R
I
TO OR ENDING WITH NOVEMBER 15, 1925
o

i
M
CO
bO

o\
-HCountry
M
00

Obligations
received u n d e r
refunding
agreements
concluded b y
World W a r
Foreign D e b t
Commission
(act of F e b . 9,
1922, as
amended F e b .
28, 1923, a n d
J a n . 21, 1925)

Obligations representing cash
advanced
under
Liberty
b o n d acts

Obligations received from
t h e Secretary of W a r
a n d t h e Secretary of t h e
N a v y on a c c o u n t of sales
of s u r p l u s w a r m a t e r i a l
(act of J u l y 9, 1918)

Obligations - r e c e i v e d
from t h e A m e r i c a n R e lief A d m i n i s t r a t i o n o n
a c c o u n t of relief s u p plies furnished (act of
F e b . 25, 1919)

0 bligations r e c e i v e d
from t h e U n i t e d States
Grain Corporation on
a c c o u n t of sales of flour
(act of M a r . 30,1920)

Total
Ui
O

Principal

Principal

I n t e r e s t (including interest
d u e N o v . 15,
1925)

Principal

Interest

Principal

Interest

Principal

Interest

Principal

Interest

o

$8,028,412.15 $2,408, 523. 66$3,931, 505. 34 $1,090, 747. 04 $11,959, 917. 49
Armenia .
$3,499, 270. 70
124,055,708 92 7, 216, 712. 70
Austria
24, 055, 708. 92
7,216,712. 70
$346,334,969.38 $40, 750,429. 94 $29, 818, 761. 38
Belgium..
2 376,153, 730. 76 40, 750,429. 94
i')
Czechoslova61,974,041.10 316,451,380. 85 20, 604,302.49 $4, 643,356. 39 6, 428, 089.19 1,498, 331. 08 2,873, 238. 25 527, 260. 65 2 91,879, 671. 03 23,120,328. 97
kia
812,213,377.88 1, 509,869.19 1, 785, 767. 72
253, 908. 66
13, 999,145. 60
1,763, 777.85
Esthonia
8, 910,000. 00
$8,910,000. 00
Finland
3,340, 516, 043. 72 963,496, 233. 83
2,933,174,898. 71 963,496,233. 83 407,341,145. 01
France
i')
4, 554, 000, 000. 00
G r e a t B r i t a i n 4, 554,000,000. 00
3,000,000.00
3, 000,000. 00
15, 000, 000. 00
Greece
___
15, 000, 000. 00
1, 972,883. 00
Hungary
1,972,883. 00
21,647, 869,197. 96 394,130,802. 04
Italy
1, 647, 869,197. 96 394,130,802. 04
642,712.86
258,820.52 2, 610, 417.82
383,892. 34
2 5,132, 287.14
Latvia.
2, 521,869. 32
7,418. 85
26, 000. 00
Liberia
7,418. 85
26, 000. 00
6, 045, 225. 00
Lithuania
6,045, 225. 00
84, 090. 28
84, 090. 28
N i c a r a g u a _._.178, 560, 000. 00
Poland
178, 560,000. 00
11,283,378.62
36,128,494. 94
7, 406, 575. 94 12, 922, 675. 42 3, 876, 802. 68
23, 205, 819. 52
Rumania
68, 390,104. 49
192, 601, 297. 37
67,161,027. 76
Russia
187, 729, 750. 00
406, 082. 30
71, 064, 42 4, 465,465. 07 1,158,012. 31
15, 653,058. 75
51,037, 886. 39
26, 059, 865.40
8, 524,005. 81 24, 978, 020. 99 7,129, 052. 94
Yugoslavia--_
4, 749,488,108. 00 5,241, 374, 542.07 1, 500, 927,875. 02 510, 890,325. 07 17, 488, 966.14 23, 318,151. 95 5, 702, 668. 05 30i 860, 452. 51 8,834, 720. 39 10,555,931,579.60 1, 532,954,22C. 60

,

>
Ui

(«)

1 Time of payment of principal and interest extended to June 1, 1943, by authority of joint resolution of Congress approved Apr. 6,1922.
2 Agreements providing for funding of these obligations as to both principal and interest executed, subject to the approval of Congress, on Aug. 18 for the Belgian indebtedness,
on Oct. 13 for Czechoslovakian indebtedness, on Sept. 24, for Latvian indebtedness, on Oct. 28, for Esthonian indebtedness, and on Nov. 14.1925, for Italian indebtedness.
3 Includes certain open account claims of War Department and Shipping Board against Czechoslovakia.
• Interest has been paid as it became due.
*
* No interest due on Nicaraguan notes until maturity.
o Credit of $1,932,923.45 allowed by funding agreement on account of loss of cargo on ship sunk by mme.




to

EXHIBIT

fcO
OS

50

PAYMENTS MADE BY FOREIGN GOVERNMEHTTS ON ACCOUNT OF PRINCIPAL OF OBLIGATIONS HELD BY
THE TREASURY
On obligations received under
refunding agreements concluded by Worid War Foreign Debt Commission (act
of Feb. 9, 1922, as amended
Feb. 28, 1923 and Jan. 21,
1925)

Country

•

Belgium
Cuba
Finland
France
Great Britain
Hungary . . .
Italy
Lithuania
Nicaragua
Rumania
Yugoslavia

^_,




To Nov. 15,. From Nov. 16,''
1924, to Nov.
1924
15, 1925.

'

.,

_ .

.

$875,839. 30
$45,000.00
23,000.000.00

^ ..
.

.

45,000 00

On obligations received
from the Secretary of
War and the SecreOn obligations representing
tary of the Navy on
cash advanced under
account of sales of
Liberty bond acts
surplus war material (act of July 9,
1918)

To Nov. 15,"
1924

From Nov.
16,1924, to
Nov. 15,
1925

$2,003,659.21.
10,000,000.00

64, 302,745. 06
23,000.000.00- 202,181, 641. 56
9, 672. 50
164,852. 94
30,000.00

$53,971.16
. $156.23

35,000.00

i; 794,180. 48
720,600.16

..
23,045,000.00

23,960,511.80

281,167, 679. 41

To Nov.
15, 1924

On obligations
received
from the
American
Relief
Administration on
account
of relief
supplies
From Nov. furnished
16, 1924, to (act of
Nov. 15, Feb. 25,
1925
1919)

156. 23

$47, 513. 86

88,971.16

47, 513. 86

On obligations
received from
the United
States Grain
Corporation on
account of sales
of flour (act of
Mar. 30, 1920)

Total

o
H
O
$2,933,469. 67
10,000,000. 00
90,000. 00
64,302,901. 29
248,181, 641.-66
9, 672. 50
164,852. 94
30,000. 00
82, 513. 86
1, 794,180. 48
720, 600.16
328,309,832. 46

M

oUi

E X H I B I T 51

PAYMENTS MADE B Y FOREIGN GOVERNMENTS ON ACCOUNT OF INTEREST ON OBLIGATIONS HELD BY THE
TREASURY
O n obligations received u n d e r
refunding a g r e e m e n t s concluded b y W o r l d W a r Foreign D e b t C o m m i s s i o n (act
of F e b . 9, 1922, as a m e n d e d
F e b . 28, 1923 a n d Jan.- 21,
1925)

Country

To Nov.
15, 1924

Belgium
Cuba
Czechoslovakia
Esthonia
Finland
^
France
Great Britain
Greece
Hungary
Italy....
Latvia . .
Liberia
LithuaniaNicaragua
Poland -.
Rumania.
Russia
Yugoslavia
_

From Nov.
16, 1924, t o
N o v . 15, 1925

$192, 567.78

$404, 325. 00

O n obligations r e p r e s e n t i n g cash a d v a n c e d
u n d e r L i b e r t y b o n d acts

To May
15, 1919

From M a y
16, 1919, t o
N o v . 15, 1924

From Nov.
16, 1924,
to N o v .
15, 1925

O n obligaO n obligations received from tions received
t h e Secretary of W a r a n d
from
t h e Secretary of t h e N a v y
American
on a c c o u n t of sales of surRelief A d p l u s w a r m a t e r i a l (act J u l y m i n i s t r a t i o n
9, 1918)
on a c c o u n t
of relief s u p plies furnished (act
F e b . 25,1919)
Tn N o v i ^'"^"^ ^^0^'T?1924'
' 16, 1924, t o
15, 1924
; j^Q^, 35^ j,g25
To Nov.
15, 1925

i

$6,930,761.41

$10,907, 281. 55
394, 520. 55
304,178. 09

4, 470,182. 05
126, 784, 250. 20
1,159,153.34

$705,599.91

!

206, 655, 000. 00

136, 965, 000. 00

14, 542. 50

"

1, 441. 88

$309,315. 27

267, 975. 00
81, 632, 398. 06

20,367,057. 25

29, 666. 33

"
$753. 04

57, 598, 852. 62
126,266.19
161.10

1,138. 99
5,168. 09
2, 048, 224. 28

500, 000. 00
_

108, 904. 11
3,495, 686. 72
636, 059.14
207,073, 867. 50

138, 090, 884.11

4, 562. 76

700. 00

135,675. 00
154, 409. 63
4,179, 675.62

$22,954. 52

429,658, 244. 87

138, 640, 601. 87

22, 954. 52

90, 794, 717. 32

407. 98
10,152. 92

50,760. 30

* •

181,017.17
21,088, 814. 72

490, 740. 42

Total

753. 04

>
$18, 736, 210. 65
2, 286, 751. 58
304,178. 09
1,441.88
981, 615. 27
231,569,831:44
701, 516, 657.11
1,159,153. 34
44,961. 87
57, 598,852. 62
130,828. 95
• 861.10
137,221. 97
15,321. 01
2, 548,224. 28
263, 313. 74
1 7, 930,094. 33
636, 059.14
1,025,861,578.37

1 Represents proceeds of liquidation of.financial affairs of Russian Government in this country (copies of letter dated May 23,1922, from the Secretary of State and of reply of the
Secretary of the Treasury dated June 2,1922, in regard to loans to Russian Government and liquidation of affairs of the latter in this country appear in the annual report of the Secretary
of the Treasury for the fiscal year ended Jupe 30,1922, as exhibit 79, p. 283),
.




w

o

T o Nov.
15, 1925

$1,892, 231. 03

125.100,194. 08
23i; 112, 406. 91

O n obligations received
from t h e
U . S. G r a i n
Corporation
on a c c o u n t
of sales of
flour (act
M a r . 30,1920)

C
K

Ui

d

'268

REPORT ON T H E FINANCES
EXHIBIT

52

fPublic No. 327, 68th Congress. H . R . 98041

AN ACT TO AMEND THE ACT ENTITLED **AN ACT TO CREATE A
COMMISSION AUTHORIZED UNDER CERTAIN CONDITIONS TO
REFUND OR CONVERT OBLIGATIONS OF FOREIGN GOVERNMENTS HELD BY THE UNITED STATES OF AMERICA, AND FOR
OTHER PURPOSES," APPROVED FEBRUARY 9, 1922, AS AMENDED
FEBRUARY 28, 1923

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled. That the Act of
February 9, 1922, as amended, creating and establishing the World
W a r Foreign Debt Commission be, and hereby is, further amended
so that section 4 of said Act of February 9, 1922, shall read as follows:
'^SEC. 4. That the authority granted by this Act shall cease and
determine at the end of two years from February 9, 1925.''
Approved, January 21, 1925,
EXHIBIT

53

AGREEMENT FOR THE FUNDING OF THE DEBT OF LITHUANIA
TO THE UNITED STATES

Am^ement made the twenty-second day of September, 1924, at the city of
Washington, District of Columbia, between the Government of the
Republic of Lithuania, hereinafter called Lithuania, party of the
first part, and the Government of the United States of America, hereinafter called the United States, party of the second part.
Whereas, Lithuania is indebted to the United States as of June
15, 1924, upon obhgations maturing June 30, 1921 and 1922, in the
aggregate principal amount of $4,981,628.03, together withinterest
accrued and unpaid thereon; and
Whereas, Lithuania desires to fund said indebtedness to the
United States, both principal and interest, through the issue of
bonds to the United otates, and the United States is prepared to
accept bonds from Lithuania upon the terms and conditions hereinafter set forth:
Now, therefore, in consideration of the premises and of the mutual
covenants herein contained, it is agreed as follows:
1. Amount of Indebtedness.—The amount of the indebtedness to
be funded, after allowing for cash payments made or to be made by
Lithuania, is $6,030,000, which has been computed as follows:
Principal amount of obligations to be funded
$4, 981, 628. 03
Interest accrued thereon from June 30, 1919, to June 15, 1924,
at the rate of 434 per cent per annum
1, 049, 918. 94
Total principal and interest accrued and unpaid as of
June 15, 1924
To be paid in cash by Lithuania, September 22, 1924
Total indebtedness to be funded into bonds

6, 031, 546. 97
1, 546. 97
6, 030, 000. 00

2. Repayment of Principal.—In order to provide for the repayment
of the indebtedness thus to be funded, Lithuania will issue to the
United States at par, as of June 15, 1924, bonds of Lithuania in the
aggregate principal amount of $6,030,000, dated June 15, 1924, and




269

SECEETAEY OF THE TEEASUEY

maturing serially on each June 15 in the succeeding years for 62
years, in the amounts and on the several dates fixed in the following
schedules:
June 1 5 —
1925
1926_..
1927
1928
1929
1930
1931
1932._
1933___
1934
1935
1936
1937
1938___
1939
1940
1941_.
1942
1943
1944
1945__
1946
1947
1948
1949.
1950_..
1951
1952
1953
1954_
1955.._.
1956

June 15—Continued

.

$30,000
30, 000
31,000
32, 000
33,000
34, 000
35,000
36,000
37,000
39,000
40, 000
42,000
43, 000
45, 000
46, 000
48, 000
49,000
51, 000
53,000
.. 55, 000
57, 000
59, 000
61, 000
63,000
65, 000
67, 000
69, 000
72, 000
75, 000
.__ 77, 000
80, 000
83, 000

1957
1958
1959
1960
1961
1962
1963
1964
1965 _
1966.
1967.
1968_
1969_
1970_
1971.
1972.
1973.
1974.
1975.
1976.
1977.
1978.
1979.
1980.
1981.
1982.
1983
1984
1985
1986

Total

$86, 000
89,000
92, 000
95,000
98,000
102,000
105,000
109,000
112, 000
116, 000
120, 000
124, 000
128, 000
133, 000*
138, OOO*
143, 000^
148, 000'
153, 000'
158, 000)
163,000!
169V 000!
175v 000181, OOO
188< 000
194, 000

201, Qm
208;
215,
223,
227,

-

000
000
000
000

6,030,000

Provided, however, That Lithuania may at its option, upon not less
than ninety days' advance notice to the United States, postpone any
payment falling due as hereinabove provided to any subsequent June
15 or December 15 not more than two years distant from its due
date, but only on condition that in case Lithuania shall at any time
exercise this option as to any payment of principal, the payment
falling due in the next succeeding year can not be postponed to any
date more than one year distant from the date when it becomes due
unless and until the payment previously postponed shall actually
have been made, and the payment falling due in the second succeeding year can not be postponed at all unless and until the payment
of principal due two years previous thereto shall actually have been
made.
All bonds issued or to be issued hereunder to the United States^
shall be payable to the Government of the United States of America,
or order, shall be issued in such denominations as may be requested
by the Secretary of the Treasury of the United States, and shall be-^
substantially in the form set forth in the exhibit hereto annexed
and marked '^Exhibit A.'' The $6,030,000 principal amount of
bonds first to be issued hereunder shall be issued in 62 pieces, in
denominations and with maturities corresponding to the annual
payments of principal hereinabove set forth.




270

KEPORT ON T H E FINANCES

3. Payment of Interest.—^All bonds issued or to be issued hereunder
shall bear interest, payable semiannually on June 15 and December
15 in each year, at the rate of 3 per cent per annum from June 15,
1924, to June 15, 1934, and thereafter at the rate of 33^ per cent
per annum until the principal thereof shall have been paid.
4. Method of Payment.—All bonds issued or to be issued hereunder
shall be payable, as to both principal and interest, in the United
States gold coin of the present standard of value, or, at the option
of Lithuania, upon not less than thirty days' advance notice to
the United States, in any obligations of the United vStates issued
after April 6, 1917, to be taken at par and accrued interest to the
date of payment hereunder: Provided, however. That Lithuania may
at its option, upon not less than ninety days' advance notice to the
United States, pay up to one-haK of any interest accruing between
June 15, 1924, and June 15, 1929, on the $6,030,000 principal amount
of bonds first to be issued hereunder, in bonds of Lithuania dated
and bearing interest from the respective dates when the interest to
be paid thereby becomes due, with maturities arranged serially to
fall on each June 15 in the succeeding years up to June 15, 1986,
substantially in the manner provided lor the original issue In paragraph 2 of this Agreement, and substantially similar in other respects
to the original issue of bonds under this Agreement.
All payments, whether in cash or in obligations of the United
States, to be made by Lithuania on account of the principal or
interest of any bonds issued or to be issued hereunder and held by
the United States, shall be made at the Treasury of the United
States in Washington, or, at the option of the Secretary of the Treasury of the United States, at the Federal Reserve Bank of New York,
and if in cash shall be made in funds immediately available on the
date of payment, or if in obligations of the United States shall be in
form acceptable to the Secretary of the Treasury of the United
States under the general regulations of the Treasury Department
governing transactions in United States obligations.
5. Exemption from Taxation.—The principal and interest of all
bonds issued or to be issued hereunder shall be paid without deduction
for, and shall be exempt from, any and all taxes or other public dues,
present or future, imposed by or under authority of Lithuania or any
political or local taxing authority within the Republic of Lithuania,
whenever, so long as, and to the extent that beneficial ownership
is in {a) the Government of the United States, (&) a person, firm,
or association neither domiciled nor ordinarily resident in Lithuania,
or (c) a corporation not organized under the laws of Lithuania.
6. Payments before Maturity.—Lithuania may at its option, on any
interest date or dates, upon not less than ninety days' advance
notice to the United States, make advance payments in amounts of
$1,000 or multiples thereof, on account of the principal of any bonds
issued or to be issued hereunder and held by the United States. Any
such advance payments shall first be applied to the principal of any
bonds which shall have been issued hereunder on account of interest
accruing between June 15, 1924, and June 15, 1929, and then to the
principal of any other bonds issued or to be issued hereunder and
neld by the United States, as may be indicated by lAthuania at the
time of the payment.




SECRETARY OF THE TREASURY

271

7. Exchange for Marketable OfeZ'i^a^fons.—Lithuania will issue to the
United States at any time, or from time to time, at the request of
the Secretary of the Treasury of the United States, in exchange for
any or all of the bonds issued or to be issued hereunder and held by
the United States, definitive engraved bonds in form suitable for sale
to the public, in such amounts and denominations as the Secretary
of the Treasury of the United States may request, in bearer form,
with provision for registration as to principal, and/or in fully registered form, and otherwise on the same terms and conditions, as to
dates of issue and maturity, rate or rates of interest, exemption from
taxation, payment in obligations of the United States issued after
April 6, 1917, and the like, as the bonds surrendered on such exchange.
Lithuania will deliver definitive engraved bonds to the United States
in accordance herewith within six months of receiving notice of any
such request from the Secretary of the Treasury of the United States,
and pending the delivery of the definitive engraved bonds will, at
the request of the Secretary of the Treasury of the United States,
deliver temporary bonds or interim receipts in form satisfactory to
the Secretary of the Treasury of the United States within thirty
days of the receipt of such request, all without expense to the United
States. The United States, before ofl'ering any such bonds or interim
receipts for sale in Lithuania, will first offer.them to Lithuania for
urchase at par and accrued interest, and Lithuania shall likewise
ave the option, in lieu of issuing any such bonds or interim receipts,
to make advance redemption, at par and accrued interest, of a corresponding principal amount of bonds issued or to be issued hereunder
and held by the United States. Lithuania agrees that the definitive
engraved bonds called for by this paragraph shall contain all such
provisions, and that-it will cause to be promulgated all such rules,
regulations, and orders, as shall be deemed necessary or desirable by
the Secretary of the Treasury of the United States in order to facilitate the sale of the bonds in the United States, in Lithuania or elsewhere, and that if requested by the Secretary of the Treasury of the
United States it will use its good offices to secure the listing of the
bonds on the stock exchange in Kaunas.
8. Cancellation and Surrender of Obligations.—Upon the execution
of this Agreement, the payment to the United States of cash in the
sum of $1,546.97 as provided in paragraph 1 of this Agreement and
the delivery to the United States of the $6,030,000, principal amount
of bonds of Lithuania first to be issued hereunder, together with
satisfactory evidence of authority for the execution of the Agreement
and the bonds on behalf of Lithuania by its Envoy Extraordinary
and Minister Plenipotentiary at Washington, the United States will
cancel and surrender to Lithuania, at the Treasury of the United
States in Washington, the obligations of Lithuania in the principal
amount of $4,981,628.03, described in the preamble to this Agreement.
9. Notices.—Any notice, request, or consent under the hand of
the Secretary of the Treasury of the United States shall be deemed
and taken as the notice, recjuest, or consent of the United States,
and shall be sufficient if delivered at the Legation of Lithuania at
Washington or at the office of the Minister of Finance in Kaunas;
and any notice, request, or election from or by Lithuania shall be
sufficient if delivered to the American Minister accredited to Lithuania
or to the Secretary of the Treasury at the Treasury of the United

E




272

REPORT ON T H E FINANCES

States in Washington. The United States in its discretion may waive
any notice required hereunder, but any such waiver shall be in writing
and shall not extend to or affect any subsequent notice or impair any
right of the United States to require notice hereunder.
10. Compliance with Legal Requirements.—Lithuania represents
and agrees that subject to the ratification of this Agreement by the
Seimas of Lithuania, the execution and delivery of this Agreement
and of the bonds issued or to be issued hereunder have in allrespects
been duly authorized and that subject to such ratification aU acts,
conditions, and legal formalities which should have been completed
rior to the making of this Agreement and the issuance of Donds
ereunder have been completed as required by the laws of Lithuania
and in conformity therewith.
11. Counterparts.—This Agreement shall be executed in two
counterparts, each of which shall have the force and effect of an
original.
In Witness Whereof Lithuania has caused this Agreement to be
executed on its behalf by its Envoy Extraordinary and Minister
Plenipotentiary at Washington, thereunto duly authorized, and the
United States has likewise caused this Agreement to be executed on
its behalf by the Secretary of the Treasury, as Chairman of the World
War Foreign Debt Commission, with the approval of the President, all on the day and year first above written, subject, however,
to the approval, respectively, of the Seimas of Lithuania and of the
Cpngress of the United States, pursuant to the Act of Congress
approved February 9, 1922, as amended by the Act of Congress
approved February 28, 1923, notice of which approval, when given,
will be transmitted, respectively, to the United States and to
Lithuania in the manner provided in paragraph 9 of this Agreement.

E

T H E GOVERNMENT OF THE
R E P U B L I C OF LITHUANIA,
By K. BIZAUSKAS,

[SEAL]

Envoy Extraordinary and Minister Plenipotentiary.
T H E GOVERNMENT OF THE
U N I T E D STATES OF AMERICA,

For the Commission:
[SEAL]

By A. W.

MELLON,

Secretary of the Treasury, and
Chairman of the World War Foreign Debt Commission.
Approved:
CALVIN COOLIDGE,

President.
E X H I B I T A.

[Form of Bond]
T H E GOVERNMENT O F . T H E REPUBLIC OF LITHUANIA

Sixty-two year 3-33^ per cent Gold Bond
Dated June 15, 1924—Maturing June 15,
$
^
^
^
^ No.
The Government of the Republic of Lithuania, hereinafter called
Lithuania, for value received, promises to pay to the Government
of the United States of America, hereinafter called the United
States, or order, on the 15th day of June,
, the sum of
Dollars ($
), and to pay interest upon said principal




SECRETARY OF T H E TREASURY

273

sum semiannually on the fifteenth day of June and December in
each year, at the rate of three per cent per annum from June 15,
1924, to June 15, 1934, and at the rate of three and one-half per
cent per annum thereafter until the principal hereof shall have
been paid. This bond is payable as to both principal and interest
in gold coin of the United States of America of the present standard
of value, or, at the option'of Lithuania, upon not less than thirty
days' advance notice to the United States, in any obligations of the
United States issued after April 6, 1917, to be taken at par and accrued
interest to the date of payment hereunder. This bond is payable
as to both principal and interest without deduction for, and is
exempt from, any and all taxes and other public dues, present or
future, imposed by or under authority of Lithuania or any political
or local taxing authority within the Republic of Lithuania, whenever,
so long as, and to the extent that, beneficial ownership is in (a) the
Government of the United States, (b) a person, firm, or association
neither domiciled nor ordinarily resident in Lithuania, or (c) a
corporation not organizeci under the laws of Lithuania. This bond
is payable as to both principal and interest at the Treasury of the
United States in Washington, D. C , or, at the option of the Secretary of the Treasury of the United States, at the Federal Reserve
Bank of New York.
This bond is issued under an Agreement, dated September 22,
1924, between Lithuania and the United States, to which this bond
is subject and to which reference is made for a further statement of
its terms and conditions.
I n Witness Whereof, Lithuania has caused this bond to be executed
in its behalf at the City of Washington, District of Columbia, by
its Envoy Extraordinary and Minister Plenipotentiary at Washington, thereunto duly authorized.
The Government of the Republic of Lithuania:
By
•"Envoy Extraordinary and Minister Plenipotentiary.
Dated, June 15, 1924.
[Back]

The following amounts have been paid upon the principal amount
of this bond:
Date.
Amount paid.
EXHIBIT

54

LETTER F R O M THE SECRETARY OF THE TREASURY, DATED SEPTEMBER 22, 1924, TO THE PRESIDENT OF THE UNITED STATES,
S U B M I T T I N G THE R E P O R T OF THE WORLD WAR F O R E I G N

DEBT C O M M I S S I O N IN CONNECTION WITH THE DEBT SETTLEMENT WITH LITHUANIA
[Copies of report, agreement, and letter of the President of September 22,1924]

WORLD W A R FOREIGN D E B T

COMMISSION,

September 22, 1924.
The

PRESIDENT:

The World War Foreign Debt Commission, created under an act
of Congress approved February 9, 1922, as amended by the act of




274

REPORT ON T H E FINANCES

Congress approved February 28, 1923, having received the representative appointed by the Government of the Republic of Lithuania
to consider the refunding of the obligations of that Government
-arising out of the World War and held by the United States, reports
as follows:
The Government of the Republic of Lithuania designated as its
representative Mr. Kazys Bizauskas, its present envoy extraordinary
and minister plenipotentiary at Washington, who conferred with
representatives of the commission and stated that he had been
instructed by his Government to advise the commission of its desire
to effect a refunding of its indebtedness to the United States and that
it was prepared to do so upon the same terms as those embodied
in the agreement previously concluded for the same purpose between
the Government of the United States and the Government of Finland, the total amount of indebtedness to be determined as of Jxme
15, 1924, accrued interest to that date on the obligations held being
computed at the rate of 43^ per cent per annum, repayment of the
indebtedness so determined to be provided for by tne issue at par
as of that date of bonds in the principal amount of $6,030,000 and the
imniediate payment in cash of any amount found to be due over and
above that figure.
After full consideration of the financial and economic situation in
Lithuania, the proposal of the Government of Lithuania was accepted,
subject to your approval and that of Congress by act or joint resolution.
An agreement on the foregoing basis has accordingly been executed
on behalf of Lithuania by its envoy extraordinary and minister
plenipotentiary at Washington, subject to the approval of the
oeimas of Lithuania, and on behalf of the United States by the
Secretary of the Treasury as chairman of the World War Foreign
Debt Commission, pursuant to authority conferred by the commission, subject to your approval and to that of Congress.
I have the honor to hand you herewith for your approval the
agreement executed in two counterparts and one copy thereof for
your files. The commission believes that the settlement of the debt
of the Government of the Republic of Lithuania to the United States
on the basis specified is fair and just to both Governments and recommends for submission to Congress the terms embodied in the agreement herewith.
I should appreciate it if, after indorsing your approval on the two
counterparts of the agreement, you would return them to me in
order that I may transmit one copy to the minister of Lithuania
and the other to the Treasurer of the United States to be held pending such action as may be taken by the Seimas of Lithuania and by
Congress.
Respectfully submitted.
(Signed)

A. W. MELLON,

Secretary of the Treasury and
Chairman of the World War Foreign Debt Commission.
The

PRESIDENT,

The White House.




SECRETARY OF T H E TREASURY

275

E X H I B I T 55

MESSAGE FROM THE PRESIDENT OF THE UNITED STATES TO
THE CONGRESS, DATED DECEMBER 4, 1924, SUBMITTING THE
REPORT OF THE WORLD WAR FOREIGN DEBT COMMISSION,
DATED DECEMBER 4, 1924

To the Congress of the UnitedStates:
I , am submitting herewith for your consideration a copy of the
report of the World War Foreign Debt Commission, dated September
22, 1924, together with a. copy of the agreement referred to therein,
providing for the settlement of the indebtecfnesa of the Government
of the Republic of Lithuania to the Government of the United States
of America. The agreement was executed on September 22, 1924,
and was approved b y me on that day subject to the approval of
Congress pursuant to authority conferred by act of Congress approved
February 9, 1922, as amended by act of Congress approved February
28, 1923.
I recommend the approval of this agreement.
.

CALVIN COOLIDGE.

T H E WHITE HOUSE,

December 4) 1924'
E X H I B I T 56
[Public No. 298, 68th Congress. H. R. 10660]
AN A C T T O A U T H O R I Z E

THE SETTLEMENT OF THE INDEBTED-

NESS OF THE REPUBLIC OF LITHUANIA TO THE UNITED STATES
OF AMERICA

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That the settlement of the indebtedness of the Republic of Lithuania to the United
States of America made by the World War Foreign Debt Commission and approved by the President upon the terms and conditions
as set forth in Senate Document Numbered 168, Sixty-eighth Congress, second session, is hereby approved in general terms as follows:
The amount of the indebtedness to be funded, after allowing for
cash payments made by Lithuania, is $6,030,000, which has been
computed as follows:
Principal amount of obligations to be funded, $4,981,628.03. I n terest accrued thereon from June 30, 1919, to June 15, 1924, at the
rate of 43^ per centum per annum, $1,049,918.94. Total principal
and interest accrued and unpaid as of June 15, 1924, $6,031,546.97.
Paid in cash b y Lithuania September 22, 1924, $1,546.97. Total
indebtedness to be funded into ponds, $6,030,000,
The principal of the bonds shall be paid in annual installments
on June 15 of each year up to and including June 15, 1986, on a
fixed schedule, subject to the right of the Government of the Republic of Lithuania to make such payments in three-year periods.
The amount of the first year's installment .shall be $30,000, the annual installments to increase until in the sixty-second year the amount
of the final installment will be $227,000, the aggregate installments
being equal to the total principal of the indebtedness to be funded
into bonds.




276

REPORT ON THE FINANCES

The Government of the Republic of Lithuania shall have theright to pay off additional amounts of the principal of the bonds on.
any interest date upon ninety days' advance notice.
Interest on the bonds shall be payable semiannually on June 15^
and December 15 of each year at the rate of 3 per centum per annum from June 15, 1924, to June 15, 1934, and thereafter at tlie rate
of 3J^ per centum per annum until final payment.
The Government of the Republic of Lithuania, at its option, upom
not less than ninety days' notice, shall have the right to pay up toone-half of the interest.accruing between June 15, 1924, and June15, 1929, on the $6,030,000 principal amount of bonds first to be
issued, in bonds of Lithuania dated and bearing interest from the
respective dates when the interest to be paid thereby becomes due,,
witn maturities arranged serially to fall on each June 15, in the succeeding years up to June 15, 1986, substantially in the manner provided for the original issue of bonds and bearing the same rates of
interest and substantially the same in other respects as such original
issue of bonds.
Any payment of interest or of principal may be made, at the o p tion of the Government of the Republic of Lithuania, in any United:
States Government obligations issued after April 6, 1917, such obligations to be taken at par and accrued interest.
Approved, December 22, 1924.
EXHIBIT

57

AGREEMENT FOR THE FUNDING OF THE DEBT OF POLAND TO^
THE UNITED STATES
Agreement made the fourteenth day of November, 1924, ^^ ^^^ (^ity of
Washington, District of Columbia, between the Government of the
Republic of Poland, hereinafter called Poland, party of the first part,
and the Government ofthe'LJnited States of America, hereinafter called
the United States, party of the second part.
Whereas, Poland is indebted to the United States as of December
15, 1922, upon obligations in the aggregate principal amount of $159,666,972.39, together with interest accrued and unpaid thereon; and
Wliereas, Poland desires to fund said indebtedness to the United
States, both principal and interest, through the issue of bonds to the
United States, and the United States is prepared to accept bonds
from Poland upon the terms and conditions hereinafter set forth:
Now, therefore, in consideration of the premises and of the.mutual
covenants herein contained, it is agreed as follows:
1. Amount of Indebtedness.—The amount of the indebtedness to be
funded, after allowing for cash payments made or to be made b y
Poland, is $178,560,000, which has been computed as follows:
Principal amount of obligations to be funded
$159, 666, 972. 39'
Interest accrued and unpaid thereon to December 15, 1922, at
the rate of 43^ per cent per annum
18, 898, 053. 60
Total principal and interest accrued and unpaid as of
December 15, 1922
To be paid in cash by Poland November 14, 1924
Total indebtedness to be funded into bonds




178, 565, 025. 99
5, 025. 99
178, 560, 000. 00

SECRETARY OF THE TREASURY

277

2. Repayment of Principal.—In order to provide for the repayment
-of the indebtedness thus to be funded, Poland will issue to the United
•States at par, as of December 15, 1922, bonds of Poland in the aggre*gate principal amount of $178,560,000, dated December 15, 1922, and
maturing serially on each December 15 in the succeeding years for
62 years, in the amounts and on the several dates fixed in the lollowing
^schedule:
December 15—
1923
1924
1925
1926
1927
1928
1929
1930.
1931
1932
1933
1934
1935
1936
1937
.
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949.
1950
' 1951
1952
1953_
1954

$560, 000
925, 000
950, 000
975,000
1,000,000
: 1,025,000
1,050,000
1, 075, 000
1,100,000
1,125,000
1,150,000
1,200,000
1,225,000
.
1,250,000
1,275,000
1,300,000
1, 325, 000
1,350,000
1,400,000
_. 1,450,000
1,500,000
1,550,000
1,600,000
1,675,000
1,750, 000
1,825,000
1,900,000
1,975,000
2,075,000
2,200,000
.^-_ 2,300,000
2,400,000

December 1 5 —
1955
..___ $2,500,000
1956
...__
2,600,000
1957J
2,700,000
1958
_._._.
2,800,000
1959___
2,900,000
1960
3,000,000
1961
3,100,000
1962
_.
3,200,000
1963
_._3,300,000
1964
..._.
3,400,000
1965
3,500,000
1966
____
3,600,000
1967
___.
3,700,000
1968
____
3,800,000
1969
__.. _...
3,900,000
1970
4,000,000
1971
.__.
4,100,000
1972
4,200,000
4,400,000
1973
:.___. _.__
1974
4,600,000
4,800,000
1975
1976_...
5,000,000
1977
___.
5,200,000
5,400,000
1978
1979
5,800,000
1980
6,200,000
6,800,000
1981
1982..
___.
7,400,000
1983
_-_8,200,000
1984
9,000,000
Total

178,560, 000

Provided, however. That Poland, at its option, upon not less than
ninety days' advance notice to the United States, may postpone any
payment falling due as hereinabove provided, except those falling
due on or before December 15, 1929, hereinafter referred to in paragraph 4 of this Agreement, to any subsequent June 15 or December
15 not more than two years distant from its due date, but only on
condition that in case Poland shall at any time exercise this option
as to any payment of principal, the payment falling due in the next
succeeding year can not be postponed to any date more than one
year distant from the date when it becomes due unless and until
the payment previously postponed shall actually have been made,
and the payment falling due in the second succeeding year can riot be
postponed at all unless and until the payment of principal due two
yea;rs previous thereto shall actually have been made.
All bonds issued- or to be issued hereunder to the United States
-shall be payable to the Government of the United States of America,
or order, shall be issued in such denominations as inay be requested
b y the Secretary of the Treasury of the United States, and snail be
substantially in the form set forth in the exhibit hereto annexed
a n d marked ''Exhibit A." The $178,560,000 principal amount



278

REPORT ON THE FINANCES -

of bonds first to be issued hereunder shall be issued in 62 pieces,
in denominations and with maturities corresponding to the annual
payments of principal hereinabove set forth.
3. Payment of Interest.—All bonds issued or to be issued hereunder
shall bear interest, payable semiannually on June 15 and December
15 in each year, at the rate of 3 per cent per annum from December
15, 1922, to December 15, 1932, and thereafter at the rate of 33^
per cent per annum until the principal thereof shall have been paid.
4. Method of Payment.—All bonds issued or to be issued hereunder
shall be payable, as to both principal and interest, in United States,
gold coin of the present standard of value, or, at the option of Poland,
upon not less than thirty days' advance notice to the United States,
in any obligations of the United Statfes issued after April 6, 1917, to
be taken at par and accrued interest to the date of payment hereunder: Provided, however, that with reference to the payments on
account of principal and/or interest falling due hereunder on or
before December 15, 1929, Poland, at its option, may pay the following amounts on the dates specified:
June 15, 1925
.
December 15, 1925
June 15, 1926
December 15, 1926
June 15, 1927
December 15, 1927

$500, 000
500, 000
750,000
750, 000
1, 000, 000
1, 000, 000

June 15, 1928
December 15, 1928
June 15, 1929
December 15, 1929
Total

$1,250,000
1, 250, 000
1, 500, 000
1, 500, 000
10, 000, 000

and the balance, including interest on all overdue payments at the
rate of 3 per cent per annum from their respective due dates, in
bonds of Poland dated December 15, 1929, bearing interest at the
rate of 3 per cent per annum from December 15, 1929, to December
15, 1932, and thereafter at the rate of 3J^ per cent per annum until
the principal thereof shall have been paid, such bonds to mature
serially on December 15 of each year up to and including December
15, 1984, substantially in the manner provided in paragraph 2 of
this Agreement, and to be substantially similar in other respects
to the bonds first to be issued hereunder.
All payments, whether in cash or in obligations of the United
States, to be made by Poland on account of the principal or interest
of any bonds issued or to be issued hereunder ana held by the United
States, shall be made at the Treasury of the United States in Washington, or, at the option of the Secretary of the Treasury of the
UnitedvStates, a t the,Federal Reserve Bank of New York, and if in
cash shall be made in funds immediately available on the date of
payment, or if in obligations of the United States shall be in form
acceptable to the Secretary of the Treasury of the United States
under the general regulations of the Treasury Department governing
transactions in United States obligations.
5. Exemption from Taxation.—The principal and interest of aU
bonds issued or to be issued hereunder shall Tbe paid without deduction for, and shall be exempt from, any and all taxes or other public
dues, present or future, imposed by or under authority of Poland
or any political or local taxing authority within the Republic of
Poland, whenever, so long as, and to the extent that beneficial
ownership is in {a) the Government of the United States, (6) a person,
firm, or association neither domiciled nor ordinarily resident in
Poland, or (c) a corporation not organized under the laws of Poland.




SECRETARY OF THE TREASURY

27&

6. Payments before Maturity.—Poland, at its option, on any interest
date or dates, upon not less than ninety days' advance notice to the
United States, may make advance payments in amounts of $1,000 or
multiples thereof, on account of the principal of any bonds issued or to^
be issued hereunder and held by the united States. Any such
advance payments shall first be applied to the principal of any bonds
which shall have been issued hereunder on account of principal and/or
interest accruing between December 15, 1922, and December 15, 1929,
and then to the principal of any other bonds issued hereunder and
held by the United States, as may be indicated by Poland at thetime of the payment.
7. Exchange for Marketable Obligations.—Poland will issue (o theUnited States at an}^ time, or from time to time, at the request of theSecretary of the Treasury of the United States, in exchange for any
or all of the bonds issued or to be issued hereunder and held by theUnited States, definitive engraved bonds in form suitable for sale tothe public, in such amounts and denominations as the Secretary of theTreasury of the United States may request, in bearer form, with
provision for registration as to principal, and/or in fully registered
form, and otherwise on the same terms and conditions, as to dates of
issue and maturity, rate or rates of interest, exemption from taxation,
payment in obligations of the United States issued after April 6,
1917, and the like, as the bonds surrendered on such exchange..
Poland will deliver definitive engraved bonds to the United States in
accordance herewith within six months of receiving notice of anysuch request from the Secretary of the Treasury of the United States,
and pending the delivery of the definitive engraved bonds will deliver,,
at the request of the Secretary of the Treasury of the United States,
temporary bonds or interim receipts in form satisfactory to theSecretary of the Treasury of the United States within thirty days of
the receipt of such request, all without expense to the United States.
The United States, before offering any such bonds or interim receipts,
for sale in Poland, will first offer them to Poland for purchase at p a r
and accrued interest, and Poland shall likewise have the option, in lieu,
of issuing any such bonds or interim receipts, to make advance redemption, at par and accrued interest, of a corresponding principal amount
of bonds issued or to be issued hereunder and held by the United
States. Poland agrees that the definitive engraved bonds called for
by this paragraph shall contain all such provisions, and that it will
cause to be promulgated all such rules, regulations, and orders, as
shall be deemed necessary or desirable by the Secretary of the
Treasury of the United States in order to facilitate the sale of thebonds in the United States, in Poland or elsewhere, and that if
requested by the Secretary of the Treasury of the United States, it
will use its good offices to secure the listing of the bonds on the stock
exchange in Warsaw.
8. Cancellation and Surrender of Obligations.—Upon the execution
of this Agreement, the payment to the United States of cash in th&
sum of $5,025.99 as provided in paragraph 1 of this Agreement and
the delivery to the United States of the $178,560,000 principal
amount of bonds of Poland first to be issued hereunder, together with
satisfactory evidence of authority for the execution of the Agreement,
and the bonds on behalf of Poland by its Envoy Extraordinary and




280

REPORT ON T H E FINANCES

Minister Plenipotentiary at Washington, the United States will cancel and surrender to Poland, at the Treasury of the United States in
Washington, the obligations of Poland in the principal amount of
$159,666,972.39. described in the preamble to this Agreement.
9. Notices.—Any notice, request, or consent under the hand of the
Secretary of the Treasury of the United States, shall be deemed and
taken as the notice, request, or consent of the United States, and shall
be sufficient if delivered at the Legation of Poland at Washington
or at the office of the Minister of Finance in Warsaw; and any notice,
request, or election from or by Poland shall be sufficient if delivered
to the American Legation at Warsaw or to the Secretary of the
Treasury at the Treasury of the United States in Washington. The
United States in its discretion may waive any notice required hereunder, but any such waiver shall be in writing and shall not extend
to or affect any subsequent notice or impair any right of the United
States to require notice hereunder.
10. Compliance with Legal Requirements.—Poland represents and
agrees that the execution and delivery of this Agreement and of the
bonds issued or to be issued hereunder have in all respects been duly
authorizied and that all acts, conditions, and legal formalities which
should have been completed prior to the making of this Agreement
and the issuance of bonds hereunder have been completed as required
by the laws of Poland and in conformity therewith.
11. Counterparts.—Thl^ Agreement shall be executed in two counterparts, each of which shall have the force and effect of an original.
i n Witness Whereof Poland has caused this Agreement to be
executed on its behalf by its Envoy Extraordinary and Minister
Plenipotentiary at Washington, thereunto duly authorized, and the
United States has likewise caused this Agreement to be executed on
its behalf by the Secretary of the Treasury, as Chairman of the World
W a r Foreign Debt Commission, with the approval of the President,
all on the day and year first above written, subject, however, to the
approval of Congress, pursuant to the Act of Congress approved
February. 9, 1922, as amended by the Act of Congress approved
February 28, 1923, notice of which approval, when given by Congress,
will be transmitted in due course by the Secretary of the Treasury
of the United States to the Legation of Poland at Washington.
T H E GOVERNMENT OF THE
REPUBLIC OF POLAND.
By WLADYSLAW WROBLEWSKI,

Envoy Extraordinary and
Minister Plenipotentiary.
[SEAL.]

T H E GOVERNMENT OF THE
U N I T E D STATES OF AMERICA,

For the Commission:
[SEAL.]

By A. W.

MELLON,

Secretary of the Treasury, and
Chairman of the World War
Foreign Debt Commission.
Approved:




CALVIN COOLIDGE,

President.

SECRETAEY OF THE TREASURY
EXHIBIT

281

A

[Form of Bond]
T H E GOVERNMENT OF THE REPUBLIC OF POLAND

Sixt3^-two year 3-3 J^ per cent Gold Bond
Dated December 15, 1922—maturing December 15,
$

•

No.

The Government of the Republic of Poland, hereinafter called
Poland, for value received, promises to pay to the Government of
the United States of America, hereinafter called the United States,
or order, on the 15th day of December,
, the sum of
Dollars ($
), and to pay interest upon said principal sum
semiannually on the fifteenth day of June and December in each
year, at the rate of three per cent per annum from December 15,
1922, to December 15, 1932, and at the rate of three, and one-half
per cent per annum thereafter until the principal hereof shall have
been paid. This bond is payable as to both principal and interest
in gold coin of the United States of America of the present standard
of value, or, at the option of Poland, upon not less than thirty days^
advance notice to the United States, in any obhgations of the United
States issued after April 6, 1917, to be taken at par and accrued
interest to the date of payment hereunder. This oond is payable
as to both principal and interest without deduction for, and is exempt
from, any and all taxes and other public dues, present or future,
imposed by or under authority of Poland or any political or local
taxing authority within the Republic of Poland, whenever, so long
as, and to the extent that, beneficial ownership is in (a) the Government of the United States, (b) a person, firm, or association neither
domiciled nor ordinarily resident m Poland, or (c) a corporation not
organized under the laws of Poland. This bond is payable as to
both principal and interest at the Treasury of the United States in
Washington, D. C , or at the option of the Secretary of the Treasury
of the United States, at the Federal Reserve Bank of New York.
This bond is issued under an Agreement, dated November 14, 1924,
between Poland and the United States, to which this bond is subject
and to which reference is made for a further statement of its terms
and conditions.
In Witness Whereof, Poland has caused this bond to be executed
in its behalf at the City of Washington, District of Columbia, by
its Envoy Extraordinary and Minister Plenipotentiary at Washington, thereunto duly authorized.
The Government of the Republic of Poland:
By
Envoy Extraordinary and
Minister Plenipotentiary.
Dated, December 15, 1922.
(Back)

The following amounts have been paid upon the principal amount
of this bond:
Date.
Amount paid.




282

REPORT ON T H E FINANCES
EXHIBIT

58

LETTER FROM THE SECRETARY OF THE TREASURY, DATED
NOVEMBER 14, 1924, TO THE PRESIDENT OF THE UNITED
STATES, SUBMITTING THE REPORT OF THE WORLD WAR FOR^EIGN DEBT COMMISSION IN CONNECTION WITH THE DEBT
SETTLEMENT WITH POLAND
WORLD W A R FOREIGN D E B T

The PRESIDENT:

COMMISSION,

Washington, November 14, 1924-

The World War Foreign Debt Commission, created under the act
of Congress approved February 9, 1922, as amended by the act of
Congress approved February 28, 1923, desires to make the foUowing
report regarding the refunding of the obligations of the Government
of the RepubHc of-Poland held by the United States:
The Government of the Republic of Poland designated as its
representative to appear before the Commission Dr. Wladyslaw
Wroblewski, its present envoy extraordinary and minister plenipotentiary at Washington. Doctor Wroblewski conferred with
representatives of the commission, stating that he had been instructed
to advise the commission of the desire of his Government to effect
a refunding of its indebtedness to the United States upon the same
l^asis as that embodied in the refunding agreement concluded between
Great Britain and the United States as of December 15, 1922, subject,
however, to certain modifications. After discussion with the Commission, Doctor Wroblewski agreed to conclude a settlement as of
December 15, 1922, substantially on the terms of the settlement
concluded by the United States with Great Britain, except for
a provision under which Poland shall have the option to liquidate
amounts due under the agreement prior to 1930 in part by certain
semiannual payments aggregating $10,000,000, the balance in bonds
of Poland similar in. terms to those originally issued.
After full consideration, an agreement on the foregoing basis was
executed on behalf of Poland by its envoy extraordinary and minister
plenipotentiary at Washington, subject to the approval of the
President and Council of Ministers of Poland, and on behalf of the
United States by the Secretary of the Treasury as chairman of the
World War Foreign Debt Commission, subject to your approval and
that of Congress.
I have the honor to hand you herewith for your approval two
executed counterparts of the agreement and one unexecuted copy
thereof for your files.
If the agreement meets with your approval, I shall appreciate it
if you wiU sign the two counterparts and return them to me so that
I may transmit one copy to the Minister of Poland and the other to
the Treasurer of the United States to be held pending such action as
may be taken by the President and Council of Ministers of Poland
and by Congress.
The Commission believes that the settlement of the debt of the
Government of the Republic of Poland to the United States on the
basis specified is fair and just to both Governments, and recommends
that the terms embodied in the agreement be submitted to Congress
for its approval.
Respectfully submitted.
A. W. MELLON,
Secretary of the Treasury and
Chairman of the World War Foreign Debt Commission.
The PRESIDENT,

The White House.



SECRETARY OF T H E TREASURY
EXHIBIT

283

59

MESSAGE F R O M T H E PRESIDENT O F T H E UNITED STATES T O
T H E C O N G R E S S , D A T E D DECEMBER 4, 1924, SUBMITTING THE

REPORT OF THE WORLD WAR FOREIGN DEBT COMMISSION,
DATED NOVEMBER 14, 1924

To the Congress of the United States:
I am submitting herewith for your consideration a copy of the
i-eport of the World War Foreign Debt Commission, dated November
14, 1924, together with a copy of the agreement referred to therein,
providing for the settlement of the indebtedness of the Government
of the Republic of Poland to the Government of the United States
of America. The agreement was executed on November 14, 1924,
-and was approved b y me on that day subject to t h e approval of
Congress, pursuant to authority conferred by act of Congress approved February 9, 1922, as amended by act of Congress approved
February 28, 1923.
I recommend the approval of this agreement.
CALVIN COOLIDGE.
T H E WHITE HOUSE,

December 4, 1924.
E X H I B I T 60
[Public, No. 299, 68th Congress. H. R. 10651]

AN ACT TO AUTHORIZE THE SETTLEMENT OF THE INDEBTEDNESS OF THE REPUBLIC OF POLAND 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 settlement of the indebtedness of the Republic of Poland to the United
States of America made by the World War Foreign Debt Commas
sion and approved by the President upon the terms and conditions
as set forth in Senate Document Numbered 169, Sixty-eighth Congress, second session, is hereby approved in general terms as follows:
The amount of the indebtedness to be funded, after allowdng for
cash payment made by Poland, is $178,560,000, which has been
computed as follows: Principal amount of obligations to be funded,
$159,666,972.39; interest accrued and unpaid thereon to December
15, 1922, at the rate of 434 per centum per annum, $18,898,053.60;
total principal and interest accrued and unpaid as of December 15,
1922, $178,565,025.99; paid in cash by Poland November 14, 1924,'
$5,025.99; total indebtedness to be funded into bonds, $178,560,000.
The principal of the bonds shall be paid in annual installments
on December 15 of each year up to and including December 15, 1984,
on a fixed schedule, subject to the right of the Government of the
Republic of Poland to make such payments in three-year periods.
The amount of the first year's installment shall be $560,000, the
annual installments to increase until the sixty-second year t h e
amount of the final installment will be $9,000,000, the aggregate
installments being equal to the total principal of the indebtedness to
be funded into bonds.
The Government of the Republic of Poland shall have the right
to pay off additional amounts of the principal of the bonds oh any
interest date upon ninety days' advance notice.
Interest on tne bonds shall be payable semiannually oh December
15 and June 15 of each year at the rate of 3 per centum per annum



284

REPORT ON THE FINANCES.

from December 15, 1922, to December 15, 1932, and thereafter a t
the rate of 33^ per centum per annum until final payment.
The Government of the Republic of Poland shall have the option
with reference to payments on account of principal and interest
falling due on or before December 15, 1929, under the terms of t h ^
agreement, to make the following payments on the dates specified:
June 15, 1925, $500,000; December 15, 1925, $500,000; June 15,
1926, $750,000; December 15,1926, $750,000 ;June 15,1927, $1,000,000;
December 15, 1927, $1,000,000; June 15, 1928, $1,250,000; December
15, 1928, $1,250,000; June 15, 1929, $1,500,000; December 15, 1929,
$1,500,000; total, $10,000,000, and to pay the balance, including interest on all overdue payments at the rate of 3 per centum per annum,
in bonds of Poland, dated December 15, 1929, bearing interest at
the rate of 3 per centum per annum from December 15, 1929, to
December 15, 1932, and thereafter at the rate of 33^ per centum
per annum, such bonds to mature serially on December 15 of each
year up to and including December 15, 1984, substantially in thesame manner and to be substantially the same in other respects as
the bonds of Poland received at the time of the funding of theindebtedness.
Any payment of interest or of principal may be made, at the
option of the Government of the Republic of Poland, in any United
States Government obligations issued after April 6, 1917, such obligations to be taken at par and accrued interest.
Approved, December 22, 1924.
EXHIBIT

61

STATEMENT GIVEN TO THE PRESS OF THE REMARKS OF THE
BELGIAN AMBASSADOR AND SECRETARY MELLON AT THE OPENING OF THE NEGOTIATIONS FOR THE FUNDING OF THE INDEBTEDNESS OF BELGIUM TO THE UNITED STATES
A U G U S T 10,

1925.

IJis Excellency Baron de Cartier de Marchienne, the Belgian
Ambassador, in opening for Belgium the negotiations for the funding
of its indebtedness to the United States, said to the American Debt
Commission:
Mr. CHAIRMAN, GENTLEMEN:

In delegating us to confer with you the Belgian Government desire to meet an
obligation the fulfillment of which will be made easier by the feelings of friendshipexisting between two nations which have fought in common for the highest idealsof mankind.
Belgium has not forgotten—nor will she ever forget—the decisive aid of the
American Army in the final triumph of the AUies, which, for Belgium, meant
the restoration of her liberty and her independence. Invaded and occupied by
the enemy, Belgium has always been grateful for the efficient and powerful work
of the Commission for Relief in succoring her helpless civilian population. Wealso know that the restoration of our country would have been long delayed had
it not been for the advances freely granted us by the United States in the critical
days which followed the armistice.
Belgium, who did her full duty on August 3, 1914, will honor all her just obligations. She would have taken up earlier with you the problem of an equitableconsolidation of her debts but for the nonfulfillment of many solemn pledges
given to her people during the war. The situation so created was made even
more critical by the fact that, during four years of occupation, Belgium was
forced to pay Germany, under the form of war levies in cash and as a.result of




SECRETARY OF THE TREASURY

285

the imposed use of German currency, a tribute which now amounts to a loss of
nearly $2,000,000,000. We feel sure that you will appreciate this special situation.
You are also aware of the sums which we had to spend to rebuild our devastated regions and t o restore our wantonly destroyed factories. We succeeded in
"this great work, in spite of the many difficulties and bitter disappointments which
•confronted us, but which we faced with that same spirit we showed in the war.
The adoption and normal functioning of the Dawes plan, although it will
give us only a small share of what we were entitled to, and the gradual curtailment of government expenditures, give, however, Belgium reason to hope that
she will succeed in her perservering efforts to place her finances on a sound basis.
You know, gentlemen, that this hope was only fostered through the levying
of crushing postwar taxes, which now so heavily weigh upon our national production.
Belgium glories in her resistance to an unprovoked aggression forced on her
:in spite of her love of peace and her scrupulous respect for all her international
obligations. When her territory was invaded, in violation of long-standing
treaties, she did not hestitate, under the heroic leadership of her King, to engage
all her resources for the defense of her liberty and for the triumph of right. We
Belgians are justly proud of debts thus incurred in the fulfillment of our duty.
Confident in their moral position and relying on that sense of justice of which
the Anierican Nation has given us so many proofs, the Belgian people have
delegated us to seek with you an agreement inspired by the recollection of the
nature and history of our debts, as well as by the just comprehension of our
•economic and financial difficulties created by an unjust war of which we were
the innocent victims.

Secretary Mellon, chairman of the American commission, replied:
During the war we learned high admiration for the courage of Belgium, the
nation which at risk of her destruction stood by her treaty obligations, and for
the even greater courage of her citizens, a civilian population under the military
heel of occupation, steadfast in their patriotism. Feelings such as these do not
change. Friends and allies we have been and will remain.
We saw your struggles in the war. We know also that your problems did not
•end with the peace treaty, but that the years since the Armistice have been for
you difficult beyond anything in your experience. Your nation, living by trade,
had first to restore its means of trade so that its people might continue to exist
before it could even take up questions with its neighbors. Nor are we unmindful
that there remains much you will wish yet to do in the adjustment of your finances
and the stabilization of your currency and that your future plans will be affected
by any agreement which may be reached here. On your part you will not undertake what you feel you can not fulfill. On our part we will not ask you to do the
"impossible. So you may rest assured that with the feelings America has for you
:and the appreciation which we have of your difficulties, your position will have
the most sympathetic and friendly consideration by our commission.
The funding of your debt to us within your capacity to pay means far more
than the mere payment by you and the receipt by us of a certain number of dollars each year. It is a recognition of the integrity of international obligations and
the settlement of a question which might disturb the long friendship of our two
nations. To accomplish these results is worthy of our every effort.
In you gentlemen here Belgium has sent its representative men with power to
negotiate. The question before us is of narrow compass. There are but two
parties to our negotiations. Politics, local or international, are not involved.
We sit here reasonable men around a table. Under such conditions we will soon
learn each others' viewpoints, determine the true facts governing the situation,
and should reach an agreement fair to your country and to ours. On behalf of the World War Foreign Debt Commission, I extend you welcome.




286

REPORT ON T H E FINANCES.
EXHIBIT

^

62

STATEMENT GIVEN TO THE PRESS BY THE WORLD WAR FOREIGN^
DEBT COMMISSION AT THE CONCLUSION OF THE NEGOTIA-^
TIONS FOR THE FUNDING OF THE INDEBTEDNESS OF BELGIUM
TO THE UNITED STATES
AUGUST 19,

1925.

The World War Foreign Debt Commission, in announcing the
conclusion of: the negotiations over the Belgian debt, made the
following statement:
The basis of settlement of the Belgian debt to the United States has heeih
reached between the United States World War Foreign Debt Commission, with
the approval of the President, and the Belgian Debt Commission, subject to the
ratification of the United States Congress and the Belgian political authorities.
Repayment of the postarmistice debt, amounting at date to about $246,000,000,.
has.been arranged on the general lines accorded to other countries. Installments^
on principal are spread over a period of 62 years and the rate of interest is to be
Z'f/2 per cent beginning at the end of 10 years as in the other cases. In this case,.
however, interest payments during the first 10 years have been graduated in
fixed amounts as shown in the statement attached. Repayment on the principal
and interest for the first year will be about $3,000,000, increasing each year until
the eleventh year, when the total amount repayable on principal and interest is^
about $9,800,000.
.
- .
The Belgian commission has been insistent that the United States should.
accept the basis for settlement of the prearmistice debt of $171,000,000 which
was accepted by President Wilson at the Peace Conference. The arrangement
contemplated at that time was that the German Government should be substituted for Belgium as the debtor for the prearmistice debts. This proposal wasaccepted by thie Pelgian Government as a fundamental part of other arrangements made by her under the treaty of Versailles, arid was also accepted by the^
other creditors whose advances amounted to over $800,000,000.
At that time it was considered by all the Belgian creditors that the prearmisticeadvances to Belgium occupied entirely a different position from other financial
obligations between any of the countries in the war. Although the plan was
accepted by the American representatives at Paris and acted upon by all theother parties to it, the United States did not of course beconie legally bound as the
Versailles treaty with Germany was not ratified. Nevertheless, the United
States Debt Commission considers that while no legal obligation rests upon the
United States in the matter, there does continue a weighty moral obligation as
a result of assurances given which entirely differentiates this sum from all other
debts due the United States from foreign countries.
Provision was made under the Dawes plan that 5 per cent of the annual
German reparations payments are set aside, after satisfying certain priorities (of
which the payment of cost of the Army of Occupation of the United States is
included as one of such priorities) for service to all nations on the Belgian prearmistice debt. All the other countries except the United States have accepted
their proportion of the sum thus payable as a consummation of the plan accepted
by President Wilson, and Belgium has been relieved as a debtor to these other
nations.
The United States Debt Commission has not been able to accept the Belgian
proposal that either Germany directly, or the proportion of the 5 per cent payable
to Belgium under the Dawes plan and applicable to the American debt, should
be substituted by Belgium for repayment of the prearmistice debt and a specific
act by Congress forbids such action. But the United States Debt Commission
has felt that under all the circumstances the United States should not ask for
more than the repayment of the principal of the prearmistice debt. This has
been arranged upon the basis of installments payable over 62 years without interest, the obligation remaining directly upon Belgium. The amount of such
annual installments is to be $2,900,000 but with a portion deferred during the
first six years for subsequent repayment. Thus after the preliminary periods
the total payments of Belgium to the United States will be about $12,700,000
per annum.
The adjustments of early payments on the debts have been made to meet the
present diflSculties of Belgium in obtaining foreign exchange because of the unfavorable balance of her commodity trade and the deficiencies in her income from
foreign investments, tourist travel, and other forms of ''invisible'' exchange. A
statement of the exact payments follows.



287

SECRETARY OP THE TREASURY

Statement of amounts payable to the United States on account of the proposed refunding bonds to be issued by Belgium on account of its postarmistice debt

Year

1..
2..
3..
4..
5..
6..
7..
8..
9..
10.
11.
12.
13.
14.
16.
16.
17.
18.
19.
20.
21.
22.
23.
24.
26.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
60.
61.
62.




Principal

$246, 000, 000
244, 900, 000
243, 800, 000
242, 600,000
241,400,000
240, 200,000
238, 900. 000
237, 600, 000
236.300,000
234,900, 000
233, 500, 000
231,900,000
230,-200,000
228,400, 000
226, 600,000
224, 700,000
222, 800,000
220,800,000
218, 700,000
216,600,000
214,400,000
212,100,000
209, 700,000
207,200,000
204, 700,000
202,100,000
199,400.000
196,600,000
193, 700,000
190, 700,000
187, 600,000
184, 300, 000
180, 900, 000
177,400,000
173. 800,000
170,100,000
166,300,000
162,300,000
158, 200,000
153,900,000
149, 500, 000
144,900,000
140, 200,000
135, 300,000
130, 200, 000
124, 900. 000
119, 500, 000
113,900,000
108,100,000
102,100,000
95, 800,000
89, 200,000
82, 400, 000
75, 400,000
68, 200, 000
60, 700. 000
62,900,000
44,800, 000
36,400,000
27,800,000
18,900, 000
9, 600, 000

Schedule of
annual interest
installments
to be paid by
Schedule of
Belgian Gov- annual prinernment on
cipal installTotal annual
refunding
ments to be
payments
bonds in
paid on account
arbitrary
of principal
amounts for
first 10 years,
3 ^ per cent
thereafter
$1, 740,000
2, 000, 000
2,250,000
2, 500,000
2, 750,000
3,250, 000
3, 750, 000
4, 250, 000
4, 750, 000
5, 250, 000
8,172, 500
8,116,500
8, 057,000
7,994,000
7,931,000
7, 864, 500
. 7, 798,000
7, 728,000
7, 654, 500
7, 581,000
7, 504,000
7,423, 500
7.339, 500
7, 252,000
7,164, 500
7,073, 500
6,979,000
6, 881,000
6, 779, 500
6, 674, 500
6, 566,000
6,450, 500
6, 331, 500
6, 209,000
6,083,000
6,953, 500
5,820, 500
5, 680, 500
5, 537,000
5,386,500
6, 232, 500
6,071, 500
4,907,000
4, 735, 500
4, 557,000
4, 371, 500
4,182, 500
3,986, 500
3, 783, 500
3, 573, 500
3, 353,000
3,122, 000
2,884,000
2, 639, 000
2,387,000
2,124, 500
1,851, 600
1,568,000
1, 274,000
3,973,000
661, 500
336, 000
310,050, 500

$1,100,000
1,100,000
1, 200,000
1,200, 000
1,200,000
1, 300,000
1,300,000
1,300.000
1,400,000
1,400,000
1,600,000
1, 700,000
1,800,000
1,800, 000
1, 900,000
1, 900,000
2,000,000
2,100,000
2,100,000
2, 200,000
2,300,000
2,400,000
2, 500,000
2, 500, 000
2,600,000
2, 700,000
2,800,000
2,900,000
3,000,000
3,100,000
3,300,000
3,400,000
3, 500,000
3,600.000
3, 700,000
3, 800,000
4,000,000
4,100,000
4,300,000
4,400,000
4, 600,000
4, 700,000
4,900,000
6,100,000
6, 300,000
6,400,000
6, 600, 000
5.800,000
6,000,000
6, 300,000
6, 600, 000
6,800,000
7,000,000
7, 200, 000
7, 500, 000
7,800,000
8,100,000
8,400,000
8, 600,000
8,900,000
9,300,000
9, 600,000
246, 000, 000

$2,840,000
3,100,000
3,450,000
3, 700, 000
3, 950,000
4, 550,000
5,050, 000
5, 550,000
' 6,150, 000
6, 650,000
9,772,500
9,816,500
9, 857,000
9, 794,000
9,831,000
9, 764, 500
9, 798,000
9,828,000
9, 754, 500
9, 781,000 •
9,804,000
9,823, 500
9, 839, 500
9, 752,000
9, 764, 500
9, 773,500
9, 779,000
9, 781,000
9. 779, 500
9, 774, 500
9,866,000
9,850, 500
9.831, 500
9,809,000
9, 783,000
9, 753, 500
9, 820, 500
9, 780, 500
9, 837,000
9, 786, 500
9.832. 500
9, 771, 500
9,807,000
9,835, 500
9,857,000
9, 771, 500
9, 782. 500
' 9, 786, 500
9, 783, 500
9, 873, 500
9,953,000
9,922,000
9.884,000
9,839,000
9,887,000
9, 924, 500
9,951, 500
9,968, 000
9,874,000
9.873,000
9,961,600
9,936,000
656,050,600

288

REPOET ON T H E FINANCES

Schedule of annual payments to be made by the Belgian Government on the principal
amounts of its prearmistice debt
Year
(June 15)

1926
1927
1928
1929
1930 ..
1931
1932
1933
1934
1935
1936 1937
1938
1939
1940
1941..^
1942
1943
1944
1945
1946
1947

.....
. .

- .

Annual installment of
principal
$1,000,000
1,000,000
1,250,000
1,760,000
2,250,000
2,750,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2, 900,000
2,900,000

Year
(June 15)

Annual installment of
principal

1948
1949
1950
1951
1952
1963
1964 .1955
1956
1967.
1968
1969
1960 .
1961
1962
1963
1964
1965
1966
1967
1968
1969

EXHIBIT

$2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000

Year
(June 16)

1970-.-.'
1971
1972
1973
1974
1976
1976
1977
1978
1979
1980
1981
1982
1983
1984
1986
1986
1987

Annual installment of
principal
$2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,900,000
2,280,000
171,780,000

63

AGREEMENT FOR THE FUNDING OF THE DEBT OF BELGIUM TO
THE UNITED STATES
Agreement made the eighteenth day of August, 1925, at the city of
Washington, District of Columbia, between the Government oj the
Kingdom of Belgium, hereinafter called Belgium, party of the first
part, and the Government of the United States of America, hereinafter
called the United States, party of the second part.
Whereas, Belgium is indebted to the United States as of June 15,
1925, upon obligations in the aggregate principal amount of $377,029,570.06, together with interest accrued and unpaid thereon; and
Whereas, Belgium desires to fund said indeotedness to the United
States, both principal and interest, through the issue of bonds to the
United States, and the United States is prepared to accept bonds
from Belgium upon the terms and conditions hereinafter set forth;
Now, therefore, in consideration of the premises and of the mutual
covenants herein contained, it is agreed as follows:
1. Amount of Indebtedness.—The indebtedness is divided into two
classes—that incurred prior to November 11, 1918, hereinafter
called Pre-Armistice indebtedness, and that incurred subsequent to
November 11, 1918, hereinafter called Post-Armistice indebtedness.
{a) The amount of the Pre-Armistice indebtedness to be funded is
$171,780,000, which is the principal amount of the obligations of
Belgium received by the United States for cash advances made prior
to November 11, 1918.
Q)) The amount of the Post-Armistice indebtedness to be funded
after allowing for certain cash payments made or to be made by
Belgium is $246,000,000, which has been computed as follows:




SECRETARY OF THE TREASURY

289

Principal of obligations for cash advanced.. $175, 430, 808. 68
Accrued and unpaid interest at A}4:% per
annum to December 15, 1922
26, 314, 491. 66
Principal of., obligations for war material
sold on credit___.
_-.
Accrued and unpaid interest at 4J^% per
annum to December 15, 1922
.
Total indebtedness as of December 15, 1922
Accrued interest thereon at 3 % per annum
from December 15, 1922, to June 15, 1925
Total indebtedness as of June 15, 1925
Deduct:
Payments on account of interest received
between December 15, 1922, and
June 15, 1925, on obligations for war
-material
Principal payment of $172.01 made
August 7, 1923, together with interest
thereon at 3 % per annum to June
15, 1925

$201, 745, 300. 34
29,818,933.39
491, 359. 24
30, 310, 292. 63
232, 055, 592. 97
17, 404, 169. 47
249, 459, 762. 44

3, 442, 346. 20

181. 58

3, 442, 527. 78
Net indebtedness as of June 15, 1925
246, 017, 234. 66
To be paid in cash upon execution of agreement
17, 234. 66
Total indebtedness to be funded into bonds_..__
246, 000, 000. 00
2. Repayment of Principal.—(a) In order to provide for the repayment of the Pre-Armistice indebtedness thus to be funded, Belgium
will issue to the United States at par bonds of Belgium bearing no
interest in the aggregate principal amount of $171,780,000, dated
J u n e 15, 1925, and maturing serially on each June 15 in the succeeding
years for 62 years, on the several dates and in the amounts jGLxed in the
following schedule:
f
i
June 1 5 —
June 1 5 —
_ $1, 000, 000
1958
1926.
$2,900,000
.
1, 000, 000
1959
1927_____-_
2,900,000
_
1, 250, 000
1960
1928____
-.
2,900,000
_
1, 750, 000
1961
1929____
2,900,000
2,250,000
1962
1930
._-____
2,900,000
_ 2, 750, 000
1963
1931.
2,900,000
1932
.
2, 900, 000
1964.
2,900,000
_
2, 900, 000
1933
196'5.._
2,900,000
.
2,900,000
1934.
1966
2,900,000
.
2, 900, 000
1967
1935
.
2,900,000
_
2, 900, 000
1936
1968
--.
2,900,000
2, 900, 000
1969
1937
._
._
2,900,000
.
2, 900, 000
1970
; 1938_
2,900,000
_
2, 900, 000
1939
.
1971
.......
2,900,000
1940
__-___.. _
2, 900, 000
1972
_._....
2,900,000
2, 900, 000
1941.._.
1973__...._
2,900,000
_
2, 900, 000
1942_
1974_L
2,900,000
2, 900, 000
1943
._ _
1975
2,900,000
_
2, 900, 000
1944..
1976..
2,900,000
2, 900, 000
1945.
..._
1977
2,900,000
:
2, 900, 000
1946
1978
2,900,000
2, 900, 000
1947
_..._
1979...._._
2,900,000
2, 900, 000
1948
.._
1980
2,900,000.
_
2, 900, 000
1949.
1981
2,900,000
. /1950_
_
2, 900, 000
1982..__.__
2,900,000
1951
_
2, 900, 000
1983
2,900,000
.
2, 900, 000
1952
1984
-.
- 2,900,000
.
2, 900, 000
1953
1985..
2,900,000
1954
.
2, 900, 000
1986
2,900,000
.
2, 900, 000
1955__:-_
1987
2,280,000
1956
_
2, 900, 000
.
2, 900, 000
1957_
$171, 780,000
60501—FI 1925t——19



290

EEPOET ON T H E FINANCES

(b) In order to provide for the repayment of the Post-Armistice
indebtedness thus to be funded Belgium will issue to the United
States at par bonds of Belgium in the aggregate principal amount
of $246,000,000, dated June 15, 1925, and maturing serially on each
June 15, in the succeeding years for 62 years, on the several dates
and in the amounts fixed in the following schedule:
J u n e 15—
. 1926..
. 1927..
1928..
1929..
1930..
1931..
1932..
1933..
1934..
1935..
1936..
1937..
1938.,
1939..
1940.
1941.
1942.
1943.
1944.
1945 _
1946_
1947 _
1948.
1949.
1950_
1951.
1952.
1953.
1954.
1955.
1956.
1957.

$1, 100, 000
1, 100, 000
1, 200, 000
1, 200, 000
1, 200, 000
1, 300, DOO
1, 300, 000
1, 300, 000
1, 400, 000
1, 400, 000
1, 600, 000
1, 700, 000
1, 800, 000
1, 800, 000
1, 900, 000
1, 900, 000
2, 000, 000
2, 100, 000
2, 100, 000
2, 200, 000
2, 300, 000
2, 400, 000
2, 500, 000
2, 500, 000
2, 600, 000
2, 700, 000
2, 800, 000
2, 900, 000
3, 000, 000
3, 100, 000
3, 300, 000
3, 400, 000

June 1 5 —
1958.
1959.
1960.
1961
1962.
1963.
1964.
1965.
1966.
1967.
1968.
1969.
1970.
1971.
1972
1973.
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
. 1985
1986
1987

$3, 500, 000
3, 600, 000
3, 700, 000
3, 800, 000
, 4,000, 000
4, 100, 000
4, 300, 000
4, 400, 000
4, 600, 000
4, 700, 000
4, 900, 000
5, 100, 000
5, 300, 000
5, 400, 000
5,.600,000
5, 800,000
6, 000, 000
6, 300, 000
6, 600, 000
6, 800, 000
7, 000, 000
7, 200,000
7, 500, 000
7, 800, 000
100, 000
400, 000
600, 000
900, 000
300, 000
600, 000
$246, 000, 000

Provided however. That Belgium at its option, upon not less than
ninety days' advance notice to the United States, may postpone any
payment on account of principal falling due as hereinabove provided
after June 15, 1935, to any subsequent June 15 or December 15 not
more than two years distant from its due date, but only on condition
that in case Belgium shall at any time exercise this option as to any
payment of principal, the payment falling due in the next succeeding
year can not be postponed to any date more than one year distant
from the date when it becomes due.unless and until the payment
previously postponed shall actually have been made, and the payment falling due in the second succeeding year ^ari not be postpoiied
at all unless and ,until the payment of principal due two years previous thereto shall actually have been made.
3. Form of Bonds.—^All bonds issued or to be issued hereunder to
the United States shall be payable to the Government of the United
States of America, or order, and shall be signed for Belgium by its
Ambassador Extraordinary and Plenipotentiary at Washington, or
by its other duly authorized representative. The bonds issued for
the Pre-Armistice indebtedness shall be substantially in the form set
forth in the exhibit hereto annexed and marked ^'Exhibit A'^, and
shall be issued in 62 pieces with maturities and in denominations



SECRETAEY OF THE TEEASUEY

291

corresponding to the annual payments hereinabove set forth. The
bonds issued for the Post-Armistice indebtedness shall be substantially
in the form set forth/in the exhibit hereto annexed and marked
*'Exhibit B ' \ and shall be issued in 62 pieces with maturities and in
denominations corresponding to the annual payments of principal
hereinabove set forth.
4. Payments of Interest.—All bonds issued for the Post-Armistice
indebtedness shall bear interest from June 15, 1925, payable,in the
amounts and on the dates set forth in the following schedule:
December 15, 1925
June 15, 1926
December 15, 1926
June 15, 1927
December 15, 1927
June 15, 1928
December 15, 1928
June 15, 1929
December 15, 1929
June 15, 1930

$870, 000
870, 000
1, 000, 000
1, 000, 000
1, 125, 000
1, 125, 000
1, 250, 000
1, 250, 000
1, 375, 000
1, 375, 000

December 15, 1930
June 15, 1931
D cember 15, 1931
June 15, 1932
December 15, 1932
June 15, 1933
December 15, 1933
June 15, 1934
December 15, 1934
June 15, 1935

$1, 625, 000
1, 625, 000
1, 875, 000
1, 875, 000
2, 125, 000
2, 125, OOO
2, 375, 000
2, 375, OOO
2, 625, 000'
2, 625, 000>

until and including June 15, 1935, and thereafter at the rate oi S}4
per cent per annum payable semiannually on June 15 and December
15 of each year until the principal of said bonds shall have been paid.
5. Method of Payment.—All bonds issued or to be issued hereunder
shall be payable, as to both principal and interest, in United States
gold coin of the present standard of value, or, at the option of Belgium, upon iiot less than thirty days' advance notice to the United
States, in any obligations of the United States issued after April 6y
1917, to be taken at par and accrued interest to the date of payment
hereunder.
All payments, whether in cash or in obligations of the United States^
to be made by Belgium on account of the principal of or interest on
any bonds issued or to be issued hereunder and held by the United
States, shall be made at the Treasury of the United States in Washington, or, at the option of the Secretary of the Treasury of the United
States, at the Federal Reserve Bank of New York, and if in cash shall
be made in funds immediately available on the date of payment, or
if in obligations of the United States shall be in form acceptable to
the Secretary of the Treasury of the United States under the.general
regulations of the Treasury Department governing transactions in
United States obligations.
6. Exemption from Taxation.—The principal arid interest of all
bonds issued or to be issued hereunder shall be paid without deduction
for, and shall be exempt from, any and all taxes or other public dues,^
present or future, imposed by or under authority of Belgium or any
political or local taxing authority within the Kingdom of Belgiumy^
whenever, so long as, and to the extent that beneficial ownership is in
(a) the Government of the United States, (b) a person, firm, or association neither domiciled nor ordinarily resident in Belgium, or (c)
a corporation not organized under the laws of Belgium.
7. Payments before Maturity.—Belgium at its option, on June 15
or December 15 of any year, upon not less than ninety days^ advance
notice to the United States, may make advance payments in amounts
of $1,000 or multiples thereof, on account of the principal of any bonds
issued or to be issued hereunder and held by the United States. Any
such advance payments shall be applied to the principal of such bonds'*
as may be indicated by Belgium at the time of the payment.



292

EEPOET ON T H E EUSTANCES

8: Exchange for Marketable Obligations.—Belgium will issue to the
United States at any time, or from time to time, at the reejuest of the
Secretary of the Treasury of the United States, in exchange for any
or all of the bonds issued hereunder and held by the United States,
definitive engraved bonds in form suitable for sale to the public, in
such amounts and denominations as the Secretary of the Treasury
of the United Stated may request, in bearer form, with provision for
registration as to principal, and/or in fully registered form, and otherwise on the same terms and conditions as to dates of issue and maturity, rate or rates of interest, if any, exemption from taxation, payment in obligations of the United States issued after April 6, 1917, and
the like, as the bonds surrendered on such exchange. Belgium will
deliver definitive engraved bonds to the United States in accordance
herewith within six months of receiving notice of any such request
from the Secretary of the Treasury of the United States, and pending
the delivery of the definitive engraved bonds will deliver, at the
request of the Secretary of the Treasury of the United States, temporary bonds or interim receipts in form satisfactory to the Secretary of
the Treasury of the United States within thirty days of the receipt of
such request, all without expense to the United States. The United
States, before offering any such bonds or interim receipts for sale in
Belgium, will first offer them to Belgium for purchase at par and
accrued interest, if an}^, and Belgium shall likewise have the option,
in lieu of issuing any such bonds or interim receipts, to make advance
redemption, at par and accrued interest, if any, of a corresponding
principal amount of bonds issued hereunder and held by the United
States. Belgium agrees that the definitive engraved bonds called for
by this paragraph shall contain all such provisions, and that it will
cause to be promulgated all such rules, regulations, and orders, as
shall be deemed necessary or desirable by the Secretary of the Treasury of the United States in order to facilitate the sale of the bonds in
the United States, in Belgium or elsewhere, and that if requested^by
the Secretary of the Treasury of the United States, it will use its good
oflSices to secure the listing of the bonds on such stock exchanges as the
Secretary of the Treasury of the United States may specify.
9. Cancellation and Surrender of Obligations.—Upon the execution
of this agreement, the payment to the United States of cash in the
sum of $17,234.66, as provided in subdivision (&) of paragraph 1 of
this Agreement and the delivery to the United States of the$417,780,000 principal amount of bonds of Belgium to be issued hereunder,
together with satisfactory evidence of authority for the execution of
this Agreement by the representatives of Belgium and for the execution of the bonds to be issued hereunder on behalf of Belgium by its
^Ambassador Extraordinary and Plenipotentiary at Washington, or
by, its other duly authorized representative, the United States will
cancel and surrender to Belgium, at the Treasury of the United States
in Washington, the obligations of Belgium in the principal amount of
$377,029,570.06, described in the preamble of this Agreement.
10. Notices.—Any notice, request, or consent under the hand of the
Secretary of the Treasury of the United States, shall be deemed and
taken as the notice, request, or consent of the United States, and shall
be suflScient if delivered at the Embassy of Belgium at Washington or
at the oflice of the Ministry of Finance in Brussels; and any notice,
request, or election from or by Belgium shall be sufficient if dehvered




SECRETARY OF THE TREASURY

293

to the American Embassy at Brussels or to the Secretary of the Treasury at the Treasury of the United States in Washington. The United
States in its discretion may waive any notice required hereunder, but
any such waiver shall be in writing and shall not extend °to or affect
any subsequent notice or impair any right of the United States to
require notice hereunder.
11. Compliance with Legal Requirements.—Belgium represents and
agrees that the executiofi and delivery of this Agreement have in all
respects been duly authorized and that all acts, conditions, and legal
formalities which should have been completed prior to the making of
this Agreement have been completed as required by the laws of Belgium and in conformity therewith.
12. Counterparts.—This agreement shall be executed in two counterparts, each of which shall have the force and effect of an original.
i n witness whereof Belgium has caused this Agreement to be
executed on its behaff by B^M de Cartier de Marchienne, F. Cattier,
E. Francqui, G. Theunis, its Special Commissioners at Washington,
thereunto duly authorized, subject, however, to the approval oi the
competent authorities of the Kingdom of Belgium, and the United
States has likewise caused this Agreement to be executed on its behalf
by the Secretary of the Treasury, as Chairman of the World War
Foreign Debt Commission, with the approval of the President, subject, however,' to the approval of Congress, pursuant to the Act of
Congress approved February 9, 1922, as amended by the Act of
Congress approved February 28, 1923, and as further amended by
the Act of Congress approved January 21,. 1925, all on the day and
year first above written.
T H E GOVERNMENT OF THE
KINGDOM OF BELGIUM,
By B5^ DE CARTIER DE MARCHIENNE,
F . CATTIER, .
E. FRANCQUI,
G. T H E U N I S .
T H E GOVERNMENT OF THE
U N I T E D STATES OF AMERICA,

For the World War Foreign Debt Commission:
By A. W.

MELLON,

Secretary of the Treasury and
Chairman of the Commission.
Approved:
CALVIN COOLIDGE,

President.
EXHIBIT A

(Form of Bond)
T H E GOVERNMENT OF THE KINGDOM OF BELGIUM

$

No.
The Government of the Kingdom of Belgium, hereinafter called
Belgium, for value received promises to pay to the Government of
the United States of America, hereinafter called the United States,
or order, on June 15, 19 , the sum of
Dollars ($
).
This bond is payable in gold coin of the United States of America
of the present standard of value, or, at the option of Belgium, upon



294

EEPOET ON T H E FINANCES

not less than thirty days^ advance notice to the United States, in
any obhgations of the United States issued after April 6, 1917,
to be taken at par and accrued interest to the date of payment
hereunder."
This bond is payable without deduction for, and is exempt from,
any and all taxes and other public dues, present or future, imposed
by or under authority of Belgium or any political or local taxing
authority within the Kingdom of Belgiunl, whenever, so long as,
and to the extent that, beneficial ownership is in (a) the Government
of the United States, (b) a person, firm, or association neither domiciled" nor ordinarily resident in Belgium, or (c) a corporation not
organized under the laws of Belgium. This bond is payable at the
Treasury of the United States in Washington, D. C , or at the option
of the Secretary of the Treasury of the United States at the Federal
Keserve Bank of New York.
This bond is issued pursuant to the provisions of subdivision (a) of
paragraph 2 of an Agreement, dated August 18, 1925, between
Belgium and the United States, to which Agreement this bond is
subject and to which reference is hereby made.
In witness whereof, Belgium has caused this bond to be executed
in its behalf at the City of Washington, District of Columbia, by
its
at Washington, thereunto duly authorized, as of June
15, 1925.
THE

GOVEENMENT OF THE KiNGDOM OF BELGIUM.

By
(Back)

The following amounts have been paid upon the principal amount
of this bond.
Date.
Amount paid.
EXHIBIT B

(Form of Bond)
T H E GOVERNMENT OF THE KINGDOM OF BELGIUM

$

.
^
• _
^No.
The Government of the Kingdom of Belgium, hereinafter called
Belgium, for value received, promises to pay to the Government of
the United States of America, hereinafter called the United States,
or order, on June 15,
, the sum of
Dollars ($
),
and to pay as interest upon said principal sum from June 15, 1925,
to and including June 15, 1935, so long as the principal of this bond
shall be unpaid, on the dates specified in paragraph 4 of the Agreement hereinafter referred to, such proportion of the amount of interest
specified in said paragraph 4 for the dates therein stated as the principal amount of this bond bears to all bonds on such dates outstanding
issued for Post-Armistice indebtedness under said Agreement, and
after June 15, 1935, Belgium promises to pay interest hereon at the
rate of 3J^% per annum, payable semi-annually on June 15 and
December 15 each year until the principal hereof has been paid.
This bond is payable as to both principal and interest in gold com of
the United States of America of the present standard of value, or, at
the option of Belgium upon not less than thirty days' advance
notice to the United States, in any obligations of the United States
issued after April 6, 1917, to be taken at par and accrued interest to
the date of pavment hereunder.



SECRETARY OF T H E TREASURY

295

This bond is payable as to both principal and interest without
deduction for, and is exempt from, any and all taxes and other
public dues, present or future, imposed by or under authority of
Belgium or any political or local taxing authority within the Kingdom of Belgium whenever, so long as, and to the extent that, beneficial ownership is in (a) the Government of the United States,
(b) a person, firm, or association neither domiciled nor ordinarily
resident in Belgium, or (c) a corporation not organized under the
laws of Belgium. This bond is payable as to both principal and
interest at the Treasury of the United States in Washington, D. C ,
or at the option of the Secretary of the Treasury of the United
States at the Federal Reserve Bank of New York.
This bond is issued pursuant to the provisions of subdivision (b) of
paragraph 2 of an Agreement, dated August 18, 1925, between
Belgium and the United States, to which Agreement this bond is
subject and to which reference is hereby made.
In witness whereof, Belgium has caused this bond to be executed
in its behalf at the City of Washington, District of Columbia, by
at Washington, thereunto duly authorized,
as of Jime 15, 1925.
T H E GOVERNMENT OF THE KINGDOM OF BELGIUM,

By
(Back)

The following amounts have been paid upon the principal amount
of this bond.
Date.
Amount paid.
EXHIBIT

64

STATEMENT GIVEN TO THE PRESS BY THE WORLD WAR FOREIGN
DEBT COMMISSION IN CONNECTION WITH THE SETTLEMENT
OF THE INDEBTEDNESS OF LATVIA TO THE UNITED STATES
i

SEPTEMBER 24,

1925.

There was signed at the Treasury to-day an agreement providing
for the refunding of the debt of the Republic of Latvia to the United
States. This indebtedness represents obligations received in connection with the sale of war supplies by the Secretary of War and
obligations received from the American Relief Administration on
account of relief supplies furnished on credit.
The agreement was signed on behalf of the Republic of Latvia
by Dr. Louis Seya, Envoy Extraordinary and Minister Plenipotentiary at Washington, and on behalf of the United States by the
Secretary of the Treasury, as chairman of the World War Foreign
Debt Commission. The agreement was sent to the President for
his approval this afternoon.
The amount of the indebtedness to be refunded is $5,775,000,
computed as follows:
Principal amount of obligations to be funded
$5, 132, 287. 14
Interest accrued and unpaid thereon to Dec. 15, 1922, at the
rate of 43^ per cent per annum
647, 275. 62
Total principal and interest accrued and unpaid as of Dec. 15,
1922_._
5,779, 562. 76
To^be paid in cash by Latvia upon execution of agreement
4, 562. 76
Total indebtedness to be funded into bonds



5, 775, 000. 00

296

, REPORT ON T H E FINANCES

The basis of the settlement is the same as that made with Poland—
that is, the settlement was made substantially on the same basis as
the settlement made with Great Britain, except t h a t Latvia has the
option to liquidate the amounts due under the agreement on or
before December 15, 1930, in part by semiannual cash payments as
follows:
June
Dec.
June
Dec.
June
Dec.

15, 1926
15, 1926_.
15, 1927
15, 1927__.
15, 1928
15, 1928

$30, 000
30, 000
35, 000
35, 000
40, 000
40, 000

June
Dec.
June
Dec.

15, 1929___:
15, 1929
15, 1930
15, 1930
Total

$45,000
45, 000
50, 000
50, 000
- _ _ : _ 400, 000

The balance is to be funded into bonds, of Latvia similar in terms
to the bonds first to be issued under the agreement.
The $5,775,000 principal amount of bonds of Latvia to be-issued
under the refunding agreement mature serially over a period of 62
years and bear interest at the rate of 3 per cent per annum up to
December 15, 1932, and at the rate of 3 H per cent per annum
thereafter.
The agreement is subject to the approval of Congress and also
to the approval of the Saeima of Latvia.
The agreement" with Latvia is the seventh funding agreement
concluded by the World War Foreign Debt Commission since its
creation on February 9, 1922. Agreements have already been concluded and approved by Congress with Great Britain, Finland,
Hungary, Lithuania, and Poland. The agreement made with
Belgium on August 18, 1925, will be submitted to Congress at its
next session, as well as the present agreement.
EXHIBIT

65

AGREEMENT FOR THE FUNDING OF THE DEBT 6 F LATVIA TO
THE UNITED STATES
Agreement made the twenty-fourth day of September, 1925, at the City of
Washington, District of Columbia, between the Government of the
Republic of Latvia, hereinafter called Latvia, party of the first part,
ana the Government of the United States of America, hereinafter called
the United States, party of the second part
Whereas, Latvia is indebted to the United States as of December
15, 1922, upon obligations in the aggregate principal amount of
$5,132,287.14, together withinterest accrued and unpaid thereon; and
Whereas, Latvia desires to fund said indebtedness to the United
States, both principal and interest, through the issue of bonds to the
United States, and the United States is prepared to accept bonds
from Latvia upon the terms and conditions hereinafter set forth:
Now, therefore, in consideration of the premises and of the mutual
covenants herein contained, it is agreed as follows:
1. Amount of Indebtedness.—The amount of the indebtedness to be
funded, after allowing for cash payments made or to be made by
Latvia, is $5,775,000, which has been computed as follows:
Principal amount of obligations to be funded
$5, 132, 287. 14
Interest accrued and unpaid thereon to December 15, 1922, at the
rate of 43^ per cent per annum
--,-,
647, 275. 62
Total principal and interest accrued and unpaid as of December
15, 1922..
..,_
_. 5, 779, 562. 7b
To be paid in cash by Latvia upon execution of Agreement
4, 562. 76
Total indebtedness to be funded into bonds
$5, 775, 000. 00



SECRETARY OF THE TREASURY

297

2. Repayment of Principal.—In order to provide for the repayment
of the indebtedness thus to be funded, Latvia will issue to the United
States at par, as of December 15, 1922, bonds of Latvia in the aggregate principal amount of $5,775,000, dated December 15, 1922, and^
maturing serially on each December 15 in the succeeding years for'
62 years, in the amounts and on the several dates fixed in the following
schedule:
December 151923
1924.....
1925__-_
1926
1927
1928.__1929
1930
1931
1932....
1933-_._
1934
1935
1936
1937
1938
1939
1940
1941
1942
1043
1944.__.
1945....
1946____
1947....
1948..._
1949
1950....
1951....
1952
1953
1954....

$28, 000
29, 000
30, 000
31, 000
32, 000
33, 000
34, 000
35, 000
36, 000
37, 000
38, 000
39, 000
40, 000
42, 000
43, 000
45, 000
46, 000
48, 000
50, 000
51, 000
53, 000
55, 000
57, 000
59, 000
61, 000
63, 000
65, 000
.68,000
70, 000
73, 000
75, 000
78, 000

December 151955
1956
1957
1958
1959
1960
1961
1962
1963.._.
1964
1965
1966
1967....
1968
1969.___
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983....
1984

$80, 000
83, 000
86, 000
89, 000
92, 000
95, 000
99, 000
102, 000
107, 000
111, 000
114,000
118, 000
123, 000
128, 000
132, 000
138, 000
143, 000
148, 000
153, 000
158, 000
164, 000
170, 000
176, 000
182, 000
188, 000
195, 000
202, 000
209, 000
218, 000
228, 000
$5, 775, 000

Provided, However, That Latvia, at its option, upon not less than
ninety days' advance notice to the United States, may postpone any
payment falling due as hereinabove provided, except those falling
due on or before December 15, 1930, hereinafter referred to in paragraph 5 of this Agreement, to any subsequent June 15 or December 15
not more than two years distant from its due date, but only on condition that in ease Latvia shall at any time exercise this option as to any
payment of principal, the payment falling due in the next succeeding
year can not be postponed to any date more than one year distant
from the date when it becomes due unless and until the payment
previously postponed shall actually have been made, and the payment
falling due in the second succeeding year can not be postponed at all
unless and until the payment of principal due two years previous^
thereto shall actually have been made.
3. Form of Bonds.—M\. bonds issued or to be issued hereunder
to the United States shall be payable to the Government of the
United States of America, or order, shall be issued in such denominations as may be requested by the Secretary of the Treasury of the
United States, substantially in the form set forth in the exhibit
hereto annexed and marked ''Exhibit A,'' and shall be.signed for
60501—FI 1925t



20

298

REPORT ON T H E FINANCES

Latvia by its Envoy Extraordinary and Minister Plenipotentiary at
Washington, or by its other duly authorized representative. The
$5,775,000 principal amount of bonds first to be issued hereunder shall
be issued in 62 pieces, in denominations and with maturities corresponding to the annual payments of principal hereinabove set forth.
4; Payment of Interest.—M\ bonds issued or to be issued hereunder
shall bear interest, payable semiannually on June 15 and December 15,
in each year, at the rate of 3 per cent per annum from December 15,
1922, to December 15, 1932, and thereafter at the rate of 33^ per cent,
per annum until the principal thereof shall have been paid.
5. Method of payment.—M\. bonds issued or to be issued hereimder
shall be payable, as to both principal and interest, in United States
gold coin of the present standard of value, or, at the option of Latvia,
upon not less than thirty days' advance notice to the United States,
in any obligations of the United States issued after April 6, 1917, to
be taken at par and accrued interest to the date of payment hereimder: Provided, However, that with reference to the payments on
account of principal and/or interest falling due hereunder on or
before December 15, 1930, Latvia, at its option, may pay the following
amounts on the dates specified:
June 15, 1926
December 15, 1926
June 15, 1927
December 15, 1927....
June 15, 1928
December 15, 1928

. $30,000
30, 000
35,000
35, 000
. . 40, 000
40, 000

June 15, 1929
December 15, 1929
June 15, 1930
December 15, 1930
Total

$45,000
45, 000
50,000
50, 000
. 4 0 0 , 000

and the balance, including interest on all overdue payments at the
rate of 3 per cent per annum from their respective due dates, in bonds
of Latvia dated December 15, 1930, bearing interest at the rate of 3
per cent per annum from December 15, 1930, to December 15, 1932,
and thereafter at the rate of 3J^ per cent per annum until the principal thereof shall have been paid, such bonds to mature serially on
December 15 of each year up to and including December 15, 1984,
substantially in the manner provided in paragraph 2 of this Agreeriient, and to be substantially similar in other respects to the bonds
first to be issued hereunder.
, All payments, whether in cash or in obligations of the United
States, to be made by Latvia on account of the principal of or interest
on any bonds issued or to be issued hereunder and held by the United
States, shall be made at the Treasury of the United States in Washitigton, or, at the option of the Secretary of the Treasury of the United
States, at the Federal Reserve Bank of New York, and if in cash shall
be made in funds immediately available on the date of payment, or
if in obligations of the United States shall be in form acceptable to
the Secretary of the Treasury of the United States under the general
regulations of the Treasury Department governing transactions. in
United States obligations.
6. Exemption from Taxation.—The principal and interest of all
bonds issued or to be issued hereunder shall be paid without deduction for, and shall be exempt from, any and all taxes or other public
dues, present or future, imposed by or under authority of Latvia or
any political or'local taxing authority within the Republic of Latvia,
whenever, so long as, and to the extent that beneficial ownership is in




SECRETARY OE THE

TREASURY

299

(a) the Government of the United States, (b) a person, firm, or association neither domiciled nor ordinarily resident in Latvia, or (c) a
corporation not organized under the laws of Latvia.
7. Payments before Maturity.—Latvia, at its option, on June 15 or
December 15 of any year, upon not less than ninety days' advance
notice to the United States, may make advance payments in amounts
of $1,000 or multiples thereof, on account of the principal of any
bonds issued or to be issued hereunder and held by the United States.
Any such advance payments shall first be applied to the principal of
any bonds which shall have been issued hereunder on account of
principal and/or interest accruing between December 15, 1922, and
December 15, 1930, and then to the principal of any other bonds
issued hereunder and held by the United States, as may be indicated
by Latvia at the time of the payment.
8. Exchange for Marketable Obligations.—Latvia will issue to the
United States at any time, or from time to time, at the request of the
Secretary of the Treasury of the United States, in exchange for any
or all of the bonds issued or to be issued hereunder and held by the
United States, definitive engraved bonds in form suitable for sale to
the public, in such ariiounts and denominations as the Secretary of the
Treasury of the United States may request, in bearer form, with provision for registration as to principal, and/or in fully registered form,
and otherwise on the same terms and conditions, as to dates of issue
and maturity, rate or rates of interest, exemption from taxation j-payment in obligations of the United States issued after April 6, 1917^
and the like, as the bonds surrendered on such exchange. Latvia
will deliver definitive engraved bonds to the United States in accordance herewith within six months of receiving notice ol any such
request from the Secretary of the Treasury of the United States, and
pending the delivery of the definitive engraved bonds will deliver, a t
the request of the Secretary of the Treasury of the United States,,
temporary bonds or interim receipts in form satisfactory to the
Secretary of the Treasury of the United States within thirty days of
the receipt of such request, all without expense to the United States,
The United States, before offering any such bonds or interim receipts
for sale in Latvia, will first offer them to Latvia for purchase at par
and accrued interest, and Latvia shall likewise have the option, in
lieu of issuing any such bonds or interim receipts, to make advance
redemption, at par and accrued interest, of a corresponding principal
amount of bonds issued or to be issued hereunder and held by. the
United States. Latvia agrees that the definitive engraved bondscalled for by this paragraph shall contain all such provisions, and t h a t
it will cause to be promulgated all such rules, regulations, and orders
as shall be deemed necessary or desirable by the Secretary of the
. Treasury of the United States in order to facilitate the sale of the
bonds-in the United States, in Latvia or elsewhere, and that if requested by the Secretary ot the Treasury of the United States, it will
use its good offices to secure the listing of the bonds on such stock
exchanges as he may request.
9. Cancellation and Surrender of Obligations.—Upon the execution
of this Agreement, the payment to the United States of cash in t h e
sum of $4,562.76 as provided in paragraph 1 of this Agreement and
the delivery to the United States of the $5,775,000 principal amount
of bonds of Latvia" first to be issued hereunder, together with satis


300

REPORT ON T H E FINANCES

factory evidence of authority for the execution of this Agreement and
the bonds on behalf of Latvia by its Envoy Extraordinary and Minister Plenipotentiary at Washington, or by its other duly authorized
representative, the United States will cancel and surrender to Latvia,
at 'the Treasury of the United States in Washington, the obligations
of Latvia in the principal amount of $5,132,287.14 described in the
preamble to this Agreement.
10. Notices.—Any notice, request, or consent under the hand of
the Secretary of the Treasury of the United States, shall be deemed
and taken as the notice, request, or consent of the United States,
and shall be sufficient if delivered at the Legation of Latvia at Washington or at the office of the Minister of Finance in Riga; and any
notice, request, or election from or by Latvia shall be suflicient if
delivered to the American Legation at Riga or to the Secretary of the
Treasury at the Treasury of the United States in Washington.
The United States in its discretion inay waive any notice required
hereunder, but any such waiver shall be in writing and shall not
extend to or affect any subsequent notice or impair any right of the
United States to require notice hereunder.
11. Compliance with Legal Requirements.—Latvia represents and
agrees that the execution and delivery of this Agreement have in all
respects been duly authorized and that all acts, conditions, and legal
formalities which should have been completed prior to the making
of this Agreement and the issuance of bonds hereunder have been
completed as required by the laws of Latvia and in conformity
therewith.
12. Counterparts.—This Agreement shall be executed in two counterparts, each of which shall liave the force and effect of an original.
i n witness whereof Latvia has caused this Agreement to be ex'ecuted
on its behalf by its Envoy Extraordinary and Minister Plenipotentiary at Washington, thereunto duly authorized, subject, however,
to the approval of the Saeima, and the United States has likewise
caused this Agreement to be executed on its behalf by the Secretary
of the Treasury, as Chairman of the World War Foreign Debt
Commission, with the approval of the President, subject, however,
to the approval of Congress, pursuant to the Act of Congress approved
February 9, 1922, as amended by the Act of Congress approved
February 28, 1923, and as further amended by the Act of Congress
approved January 21, 1925, all on the day and year first above
written.
T H E GOVERNMENT OF THE
R E P U B L I C OF LATVIA,

By Louis SEYA,

Envoy Extraordinary and Minister Plenipotentiary.
T H E GOVERNMENT OF THE
U N I T E D STATES OF AMERICA,

For the World War Foreign Debt Commission:
By A. W.

MELLON,

Secretary of the Treasury and Chairman of the Commission.
Approved:
CALVIN COOLIDGE,




President.

SECRETARY OF T H E TREASURY

301

EXHIBIT A
(Form of Bond)

T H E GOVERNMENT OF THE R E P U B L I C OF LATVIA
$•

No.

•

The Government of the Republic of Latvia, hereinafter called
Latvia, for value received, promises to pay to the Government of
the United States of America, hereinafter called the United States,
or order, on December 15,
, the sum of
Dollars ($
),
and to pay interest upon said principal sum semiannually on June
15 and December 15 in each year, at the rate of 3 % per annum from
December 15, 1922, to December 15, 1932, and at the rate of 3 J^% per
annum thereafter until the principal hereof shall have been paid.
This bond is payable as to both principal and interest in gold coin
of the United States of America oi the present standard of value, or,
at the option of Latvia, upon not less than thirty days' advance
notice to the United States, in any obligations of the United States
issued after April 6, 1917, to be taken at par and accrued interest
to the date of payment hereunder.
This bond IS payable as to both principal and interest without
deduction for, and is exempt from, any and all taxes and other public
dues, present or future, imposed by or under authority of Latvia or
any political or local taxing authority within the Republic of Latvia
whenever, so long as, and to the extent that, beneficial ownership
is in (a) the Government of the United States, (b) a person, firm, or
association neither domiciled nor ordinarily resident in Latvia, or
(c) a corporation not organized under the laws of Latvia. This
bond is payable as to both principal and interest at the Treasury
of the United States in Washington, D. C , or at the option of the
Secretary of the Treasury of the United States at the Federal Reserve
Bank of New York.
This bond is issued under an Agreement, dated September 24,
1925, between Latvia and the United States, to which this bond is
subject and to which reference is hereby made.
In witness whereof, Latvia has caused this bond to be executed
in its behalf at the City of Washington, District of Columbia, by
its
at Washington, thereunto duly authorized,
as of December 15, 1922.
T H E GOVERNMENT OF THE R E P U B L I C OF LATVIA,

By
(Back)

The following amounts have been paid upon the principal amount
of this bond.
Date.
Amount paid.




302

REPORT ON T H E FINANCES
EXHIBIT

66

STATEMENT GIVEN TO THE PRESS BY THE WORLD WAR FOREIGN
DEBT C O M M I S S I O N IN CONNECTION WITH THE SETTLEMENT
OF THE INDEBTEDNESS OF CZECHOSLOVAKIA TO THE UNITED .
STATES
OCTOBER 9,

1925.

The World War Foreign Debt Commission announced to-day:
The Czechoslovakian Debt Commission proposed to the American Commission:
^'With reference to our various discussions in the matter of settlement of the
obligations of the Czechoslovak Government to the United States, we beg to
submit to you the following proposal:
" 1 . That as there are a number of disputed items between us as to the capital
sum of the debt, we believe that instead of entering upon the very large expense
and delay involved on both sides by a reaccounting, we are prepared to yield on
some considerable part of these items and to propose to you a round sum of settlement, that is, that we shall consider the capital of the debt as at June 15, 1925,
to be $115,000,000. If, on the other hand, your commission prefers, we are prepared to enter upon an accounting of these transactions and in this manner
determine the capital.
"2. That if you can see your way to accept this proposal of $115,000,000, we
are prepared to at once enter into the contract of settlement on the terms which
we have discussed."
The.American Commission accepted the offer of $115,000,000 as the capital
sum as of June 15, 1925, and a funding of the debt has been agreed upon on the
following terms:
(a) The principal to be paid over a period of 62 years, with interest at rates
of 3 per cent for the first 10 years and 3 H per cent thereafter.
(6) During the first 18 years the total annual amount to be paid is fixed at
$3,000,000 yearly, and the balance of each annuity at the above interest rates
is funded over the remaining 44 years.
A definitive agreement, subject to approval of Congress, will be prepared for
.signatures and submission to the President.
EXHIBIT

67

AGREEMENT F O R T H E FUNDING O F T H E DEBT O F CZECHOSLO^
VAKIA TO T H E U N I T E D STATES

Agreement made the thirteenth day of October, 1925, at the City of
Washington, District of Columbia, between the Czechoslovak Republic
hereinafter called Czechoslovakia, party of the first part, and the
United States of America, hereinafter called the United States, party
of the second part.
Whereas, the United States now holds certain obligations of
Czechoslovakia and there are outstanding open accounts in favor of
the United States and claims against the United States which are in
dispute; and
^
Whereas,.the United States and Czechoslovakia wish to settle the
financial differences between the two governments and/or their
agencies and to fix the net amount of the indebtedness of Czechoslovakia to the United States, both principal and interest, as of June
15, 1925, and to fund such indebtedness;
Now, therefore, in consideration of the premises and of the mutual
covenants herein contained, it is agreed as follows:
1. Amount of Indebtedness.—The amount of the indebtedness of
Czechoslovakia as of June 15, 1925, is fixed at $115,000,000.
2. Payment.—In order to provide for the payment^of the indebtedness thus to be funded Czechoslovakia will issue to the United States




SECRETARY OF T H E TREASURY

303

at par bonds of Czechoslovakia in the aggregate principal amount of
$185,071,023.07, dated June 15, 1925, and maturing serially on the
several dates and in the amounts fixed in the following schedule:
Dec. 15, 1925_
June 15, 1926_
Dec. 15; 1926_
June 15 1927_
Dec. 15, 1927_
J u n e 15 1928.
Dec. 15, 1928June 15 19'29.
Dec. 15 1929_
J u n e 15 1930_
Dec. 15; 1930.
June 15 1931.
Dec. 15; 1931_.
June 15 1932_
Dec. 15, 1932_
J u n e 15 1933.
Dec. 15; 1933.
J u n e 15 1934.
Dec. 15 1934.
June 15 1935.
Dec. 15 1935June. 15 1936.
Dec. 15; 1936J u n e 15, 1937Dec. 15; 1937June 15, 1938Dec. 15 1938June 15 1939Dec. 15, 1939-.
June 15 1940Dec. 15; 1940.
J u n e 15, 1941-.
Dec. 15. 1941-.
June 15, 1942Dec. 1 5 1942-.
June 15 1943June 15
1944
1945
1946.
1947.
1948.

June 1 5 —
194919501951195219531954' 1955195619571958.
19591960196119621963a964.
1965196619671968-.
19691970-.
1971.
1972-.
19731974..
19751976-.
1977-.
1978-.
1979-.
19801981..
1982-.
198319841985$1, 296, 023. 07
19861, 340, 000
1987-.
1, 385, 000
1, 435, 000
1, 485, 000
$1, 500, 000
1, 500, 000
1, 500, 000
1, 500, 000
1, 500, 000
1, 500, 000
1, 500, 000
1, 500,000
1, 500, 000
1, 500, 000
1, 500, 000
1, 500, 000
1, 500, 000
1, 500, 000
1, 500, 000
1, 500, 000
1, 500, 000
1, 500,000
1, 500, 000
1; 500, 000
1, 500, 000
1, 500, 000
1, 500, 000
1, 500, 000
500,000
1, 500, 000 .
1,
1, 500, 000
1, 500, 000
500, 000
1, 500, 000
1,
1, 500, 000
1, 500, 000
1, 500, 000
1, 500, 000
500,000
1 .500,000
,
1,

$1, 540, 000
1, 590, 000
1, 645, 000
1, 705, 000
1, 765, 000
1, 825, 000
1, 890, 000
1, 960, 000
2, 025, 000
2, 100, 000
2, 170, 000
2, 245, 000
2, 325, 000
2, 405, 000
2, 490, 000
2, 575, 000
2, 665, 000
2, 760, 000
2, 855, 000
2, 955, 000
3, 060, 000
3, 165, 000
3, 280, 000
3, 395, 000
3, 510, 000
3, 635, 000
3, 760, 000
3, 890, 000
4, 030, 000
4, 170, 000
4, 315, 000
4, 465, 000
4, 625, 000
4, 785, 000
4, 950, 000
5, 125, 000
5, 305, 000
5, 490, 000
5, 685, 000
$185, 071, 023. 07

Provided, however. That Czechoslovakia, at its option, upon not
less than ninety days' advance notice to the United States, may
postpone any payment on account of principal falling due as hereinabove provided after June 15, 1943, to any subsequent June 15 or
December 15 not more than two years distant from its due date, but
only on condition that in case Czechoslovakia shall at any time
exercise this option as to any payment of principal, the payment
falling due in the next succeeding year can not be postponed to any
date more than one year distant from the date when it becomes due
unless and until the payment previously postponed shall actually
have been made, and the payment falling due in the second succeeding
year can not be postponed at all unless and until the payment of
principal due two years previous thereto shall actually have been
made.
3. Form of Bonds.—Ail bonds issued or to be issued hereunder to
the United States shall be payable to the Government of the United



304

REPORT ON THE FINANCES

States of America, or order, and shall be signed for Czechoslovakia
by its Minister of Finance and countersigned by the President of the
Supreme Accounting Control Ofiice in Prague and likewise countersigned by its Envoy Extraordinary and Minister Plenipotentiary at
Washington, or by its other duly authorized representative. The
bonds issued for the first thirty-six semiannual payments shall be
substantially in the form set forth in the exhibit hereto annexed and
marked ^ Exhibit A,'' and shall be issued in 36 pieces of the principal
^
amount of $1,500,000 each maturing serially on December 15, 1925,
and semiannually thereafter up to and including June 15, 1943, and
shall not bear interest before maturity. The bonds maturing subsequent to June 15, 1943, shall be substantially in the form set forth
in the exhibit hereto annexed and marked ^^Exhibit B,'' and shall be
issued in 44 pieces with maturities and in denominations as hereinabove set forth and shall bear interest at the rate of S}4% per annum
from June 15, 1943, payable semiannually on June 15 and December
15 of each year until the principal of such bonds shall be paid.
4. Method of Payment.—All bonds issued or to be issued hereunder
shall be payable, as to both principal and interest, in United States
gold coin of the present standard of value, or, at the option of Czechoslovakia, upon not less than thirty days' advance notice to the
United States, in any obligations of the United States issued after
April 6, 1917, to be taken at par and accrued interest to the date of
payment hereimder.
All payments, whether in cash or in obligations of the United
States, to be made by Czechoslovakia on account of the principal of or
interest on any bonds issued or to be issued hereunder and neld by
the United States, shall be made at the Treasury of the United
States in Washington, or, at the option of the Secretary of the
Treasury of the United States, at the Fedcx^al Reserve Bank of New
York, and if in cash shall be made in funds immediately available on
the date of payment, or if in obligations of the United States shail be
in form acceptable to the Secretary of the Treasury of the United
States under the general regulations of the Treasury Department
governing transactions in United States obhgations.
5. Exemption from Taxation.—The principal and interest of all
bonds issued or to be issued hereunder shall be paid without deduction
for, and shall be exempt from, any and all taxes or other public dues,
present or future, imposed by or under authority of Czechoslovakia
or any political or local taxing authority within the Czechoslovak
Republic, whenever, so long as, and to the extent that beneficial
ownership is in (a) the Government of the United States, (b) a
person, firm, or association neither domiciled nor ordinarily resident
in Czechoslovakia, or (c) a cdrporation not organized under the
laws of Czechoslovalda.
6. Payments before Maturity.—Czechoslovakia, at its option, on
June 15 or December 15 of any year, upon not less than ninety days'
advance notice to the United States, may make advance payments
in amounts of $1,000 or multiples thereof, on account of the principal
of any bonds issued or to be issued hereunder and held by the United
States. Any such advance payments shall be applied to the principal of such bonds as may be indicated by Czechoslovakia at the
time of the payment.




SECRETARY OF THE TREASURY

'

305

7. Exchange for Marketable Obligations.— Czechoslovakia will issue
to the United States at any time, or from time to time, at the request
of the Secretary of the Treasury of the United States, in exchange for
any or all of the bonds issued hereunder and held by the United States,
definitive engraved bonds in form suitable for sale to the public, in
such amounts and denominations as the Secretary of the Treasury
of the United States may request, in bearer form, with provision for
registration as to principal, and/or in fully registered form, and otherwise on the same terms and conditions, as to dates of issue and maturity, rate or rates of interest, if any, exemption from taxation, paym^ent
in obligations of the United States issued after April 6, 1917, and the
like, as the bonds surrendered on such exchange. Czechoslovakia will
deliver definitive engraved bonds to the United States in accordance
herewith within six months of receiving notice of any such request
from the Secretary of the Treasury of the United States, and pending
the delivery of the definitive engraved bonds will deliver, at the
request of the Secretary of the Treasury of the United wStates, temporary bonds or interim receipts in form satisfactory to the Secretary
of the Treasury of the United States within thirty days of the receipt
of such request, all without expense to the United States. The
United States, before offering any such bonds or interim receipts for
sale in Czechoslovakia, will first offer them to CzechoslovaKia for
)urchase at par and accrued interest, if any, and Czechoslovakia shall
ikewise have the option, in lieu of issuing any such bonds or intejrim
receipts, to make advance redemption, at par and accrued interest,
if any, of a corresponding principal amount of bonds issued hereunder
and held by the United States. Czechoslovakia agrees that the
definitive engraved bonds called for by this paragraph shall contain
all such provisions, and that it will cause to be promulgated all such
rules, regulations, and orders as shall Ke deemed necessary or desirable by the Secretary of the Treasury of the United States in order to
facilitate the sale of the bonds in the United States, in Czechoslovakia
or elsewhere, and that if requested by the Secretar}^ of the Treasury
of the United States, it will use its good offices to secure the listing
of the bonds on such stock exchanges as the Secretary of the Treasury
of the United States may specify.
8. Cancellation and Surrender of Obligations.—Upon the execution
of this Agreement, the delivery to the United States of the $185,071,023.07 principal amount of bonds of Czechoslovakia to be issued
hereunder, together with satisfactory evidence of authority for the
execution of this Agreement by the representatives of Czechoslovakia and for the execution of the bonds to be issued hereunder, the
United States will cancel and surrender to Czechoslovakia at the
Treasury of the United States in Washington, the obligations of
Czechoslovakia held by the United States and a satisfaction shall
be had of all financial claims existing between the two governments
and/or their agencies.
9. Notices.—Any notice, request, or consent under the hand of the'
Secretary of the Treasury of the United States, shall be deemed and
taken as the notice, request, or consent of the United States, and shall
be sufficient if delivered at the Legation of Czechoslovakia at Washington or at the office of the Ministry of Finance in Czechoslovakia;
and any notice, request, or election from or by Czechoslovakia shall
be sufficient if delivered to the American Legation at Prague or to the

f




306

REPORT ON T H E FINANCES

Secretary of the Treasury at the Treasury of the United States in
Washington. The United States in its discretion may waive any
notice required hereunder, but any such waiver shall be in writing
and shall not extend to or affect any subsequent notice or" impair
any right of the United States to require notice hereunder.
10. Compliance with Legal Requirements.—Czechoslovakia represents and agrees that the execution and delivery of this Agreement
have in all respects been duly authorized and that all acts, conditions,
and legal formalities which should have been completed prior to the
making of this Agreeijient have been completed as required by the
laws of Czechoslovakia and in conformity therewith.
11. Counterparts.—This Agreement shall be executed in two
counterparts, each of which shall have the force and effect of an original.
In witness whereof Czechoslovakia has caused this Agreement to
be executed on its behalf by Dr. Vilem Pospisil, Karel Kucera and
Dr. Karel Brabenec, its Plenipotentiaries at Washington, thereunto
duly authorized, subject, however, to constitutional ratification in
Czechoslovakia, and the United States has likewise caused this
Agreement to be executed on its behalf by the Secretary of the
Treasury, as Chairman of the World War Foreign Debt Commission,
with the approval of the President, subject, however, to the approval
of Congress, pursuant to the Act of Congress approved February 9,
1922, as amended by the Act of Congress approved February 28,
1923, and as further amended by the Act oi Congress approved
January 21, 1925, all on the day and year first above written.
^

By

T H E CZECHOSLOVAK REPUBLIC,
D R . VILEM POSPISIL,
K A R E L KUCERA,
Dr. K A R E L BRABENEC.
T H E U N I T E D STATES OF AMERICA,

For the World War Foreign Debt Commission:
By

A. W.

MELLON,

Secretary of the Treasury and
Chairman of ihe Commission.
Approved:
CALVIN COOLIDGE,

President.
EXHIBIT A
(Form of Bond)

T H E CZECHOSLOVAK R E P U B L I C

$1,500,000.
No.
The Czechoslovak Republic, hereinafter called Czechoslovakia, for
value received, promises to pay to the Government of the United
States of America, hereinafter called the United States, or order,
on
19 ; the sum of One Million Five Hundred Thousand
Dollars ($1,500,000). This bond is payable in gold coin of the
United States of America of the present standard of value, or, at
the option of Czechoslovakia, upon not less than thirty days' advance
notice to the United States, in any obligations of the United States
iss^ed after April 6, 1917, to be taken at par and accrued interest
to the date of payment hereunder.




SECRETARY OF T H E TREASURY

307

This bond is payable without deduction for, and is exempt from,
any and all taxes and other public dues, present or future, imposed
by or under authority of Czechoslovakia or any political or local
taxing authority within Czechoslovakia, whenever, so long as, and
to the extent that, beneficial ownership is in (a) the Government of
the United States, (b) a person, firm, or association neither domiciled
nor ordinarily resident m Czechoslovaikia, or (c) a corporation not
organized under the laws of Czechoslovakia. This bond is payable
at the Treasury of the United States in Washington, D. C , or at
the option of the Secretary of the Treasury of the United States at
the Federal Reserve Bank of New York.
This bond is issued pursuant to the provisions of paragraph 2 of
an Agreement dated October 13, 1925, between Czechoslovakia and
the United States, to which Agreement this bond is subject and to
which reference is hereby made.
In witness whereof, Czechoslovakia has caused this bond to be
executed in its behalf by its Minister of Finance and countersigned
by the President of the Supreme Accounting Control Office in Prague
and likewise countersigned at the City of Washington, District of
Columbia, by its
at Washington, thereunto
duly authorized, as of June 15, 1925.
T H E CZECHOSLOVAK REPUBLIC,

Minister of Finance.
EXHIBIT B
(Form of Bond)
THE

$

CZECHOSLOVAK R E P U B L I C

. N o .
The Czechoslovak Republic, hereinafter called Czechoslovakia, for
value received, promises to pay to the Government of the United
States of America, hereinafter called the United States, or order, on
June 15, 19 , the sum of
Dollars ($
), and to pay interest upon said principal sum from June 15, 1943, at the rate of
3 H % per annum, payable semiannually on the 15th day oi December and June in each year, until the principal hereof has been paid.
This bond is payable as to both principal and interest in gold coin
of the United States of America ol the present standard of value, or,
at the option of Czechoslovakia, upon not less than thirty days'
advance notice to the United States, in any obligations of the United
States issued after April 6, 1917, to be taken at par and accrued
interest to the date of payment hereunder.
This bond is payable as to both principal and interest without
deduction for, and is exempt from, any and all taxes and other public
dues, present or future, imposed by or under authority of Czechoslovakia or any political or local taxing authority within the Czechoslovak Republic whenever, so long as, and to the extent that,
beneficial ownership is in (a) the Government of the United States,
(b) a person, firm, or association neither domiciled nor ordinaril}^
resident in Czechoslovakia, or (c) a corporation not organized under
the laws of Czechoslovakia. This bond is payable as to both principal and interest at the Treasury of the United States in Washington,
D. C , or at the option of the Secretary of the Treasurj^ of the United
States at the Federal Reserve Bank of New York.




308

REPORT ON T H E FINANCES

This bond is issued pursuant to the provisions of paragraph 2 of
an Agreement dated October 13, 1925, between Czechoslovakia and
the United States, to which Agreement this bond is subject and to
which reference is hereby made.
In witness whereof, Czechoslovakia has caused this bond to be
executed in its behalf by its Minister of Finance and countersigned
by the President of the Supreme Accounting Control Office in
Prague and likewise countersigned at the City of Washington, District of Columbia, by its
at Washington, thereunto duly authorized, as of June 15, 1925.
THE

CZECHOSLOVAK

REPUBLIC,

By
Minister of Finance.
E X H I B I T 68
S T A T E M E N T a i V E N TO T H E P R E S S B Y T H E W O R L D W A R F O R E I G N
D E B T C O M M I S S I O N I N C O N N E C T I O N W I T H THE SETTLEMENT

OF THE I N D E B T E D N E S S OF ESTHONIA TO THE UNITED STATES
OCTOBER 28,

1925.

There was signed at the Treasury to-day an agreement providing
for the refunding of the debt of the Republic of Esthonia to the
United States. The indebtedness represents obligations received
in connection with the sale of war supplies by the United States
Liquidation Commission, War Department,, and obligations received
from, the American Relief Administration on account of relief supplies
furnished on credit.
The agreement was signed on behalf of the Republic of Esthonia
by Mr. Antonius Piip, Envoy Extraordinary and Minister Plenipotentiary at Washington, and on behalf of the United States by the
Secretary of the Treasury, as chairman of the World War Foreign
Debt Commission. The agreement was immediately sent to the
President for his approval.
The amount of the indebtedness to be funded is $13,830,000, computed as follows:
Principal amount of obligations to be funded.
$13, 999, 145. 60
Credit allowed for total loss of cargo on sinking of Steamship John
Russ sunk by a mine in Baltic Sea
.
1, 932, 923. 45
Interest accrued and unpaid thereon to Dec. 15, 1922, at the
rate of 4}^ per cent a year

12, 066, 222. 15
1, 765, 219. 73

Total principal and interest accrued and unpaid as of Dec. 15,
1922._._
.
13, 831, 44L 88
To be paid in cash by Esthonia upon execution of agreement
1, 441. 88
Total indebtedness to be funded into bonds

13, 830, 000. 00

The credit of $1,932,923.45 was allowed on account of the total
loss of a cargo of surplus war material sold to Esthonia for relief
purposes and destroyed when the Steamship John Russ was sunk by a
mine in the Baltic Sea in September, 1919. The basis of the settlement
is the same as that made with Poland, Esthonia having the option
to liquidate the amounts due under the agreement on or before
December 15, 1930, in part by semiannual cash payments as follows:




SECRETARY O F THE

June
Dec.
June
Dec.
June
Dec.

15, 1926
15, 1926__.
15, 1927
15, 1927
15, 1928.
15, 1928

.

._._..
.
..

$50,000
50,000
75, 000
75, 000
100, 000
100,000 |

TREASURY

June
Dec.
June
Dec.

15,
15,
15,
15,

1929
1929.1930
1930

Total

309

_-.

$125, 000
125, 000
150, 000
_ 150, 000
$1,000,000

The balance is to be funded into bonds of Esthonia similar in
terms to the bonds first to be issued under the agreement.
The $13,830,000 principal amount of bonds of Esthonia to be
issued under the funding agreement mature serially over a period of
62 years and bear interest at the rate of 3 per cent a year up to
December 15, 1932, and at the rate of 3J/2 P^r cent a year thereafter.
The agreement with Esthonia is the ninth funding agreement
concluded by the World War Foreign Debt Commission since its
creation on February 9, 1922. Agreements have already been concluded and approved by Congress with Great Britain, Finland,
Hungary, Lithuania, and Polan(i. Agreements have also been concluded with Belgium, Czechoslovakia, and Latvia, which will be
submitted to Congress at its next session as well as the present
agreement.
EXHIBIT

69

AGREEMENT FOR THE FUNDING OF THE DEBT OF ESTHONIA TO
THE UNITED STATES
Agreement made the 28th day of October, 1925, at the city of Washington,
D. C, between the Republic of Esthonia, hereinafter called Esthonia,
party of the first part, and the United States of America, hereinafter
called the United States, party of the second part.
Whereas, Esthonia is indebted to the United States as of December
15, 1922, upon obligations in the aggregate principal amount of
$13,999,145.60, together with interest accrued and unpaid thereon;
a,nd
WhereaS) Esthonia desires to fund said indebtedness to the United
States, both principal and interest, through the issue of bonds to the
United States, and the United States is prepared to accept bonds
from Esthonia upon the terms and conditions hereinafter set forth;
Now, therefore, in consideration of the premises and ol the mutual
covenants herein contained, it is agreed as follows:
1. Amount of indebtedness.—The amount of the indebtedness to
be funded, after allowing for cash payments made or to be made by
Esthonia and the credit set out below, is $13,830,000, which has been
computed as follows:
Principal amount of obligations to be funded
$13, 999, 145. 60
Credit allowed for total loss of cargo on sinking of S. S. John
Russ sunk by a mine in Baltic Sea
•
1, 932, 923. 45
Interest accrued and unpaid thereon to Dec. 15, 1922, at the rate
of 4Ji per cent a year
.._.__
Total principal and interest accrued and unpaid as of Dec. 15,
^ 1922
.
To be paid in cash by Esthonia upon execution of agreement._
Total indebtedness to bis funded into bonds




12, 066, 222. 15
1, 765, 219. 73
13, 831, 44L 88
1, 441. 88
13, 830, 000. 00

310

REPORT ON T H E FINANCES *

2. Repayment of principal.—In order to provide for the repayment
of the indebtedness thus to be funded Esthonia will issue to the
United States at par as of December 15, 1922, bonds of Esthonia
in the aggregate principal amount of $13,830,000, dated December 15,
1922, and maturing serially on each December 15 in the succeeding
years for 62 years, in the amounts and on the several dates fixed in
the following schedule:
Dec. 1 5 —
1923
1924
1925
1926
._.._
1927__.
.__._
1928...
1929..
1930
1931
1932
1933
1934..__
..-._
1935
1936
1937
1938
1939
.
1940
......
1941
1942
1943
.....
1944
1945
1946
1947
1948
1949
1950
1951
1952
.
1953
.....
1954.

$69,000
71,000
73,000
75,000
78,000
80,000
82,000
85,000
88,000
90,000
92,000
95,000
98,000
101,000
105,000
109,000
113,000
117,000
121,000
125,000
129,000
134,000.
138,000
143,000
148,000
153,000
159,000
165,000
170,000
176,000
182,000
189,000

Dec. 1 5 —
1955
• 1956
1957
1958...
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972..:
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
Total

.._._.
.

.

.....
.....

....

$195,000
202,000
209,000
217,000
224,000
232,000
240,000
249,000
257,000
266,000
275,000
285,000
295,000
305,000
316,000
327,000
339,000
350,000
363,000
375,000
388,000
402,000
416,000
431,000
446,000
461,000
477,000
494,000
511,000
530,000
$13,830,000

Provided, however. That Esthonia, at its option, upon not less than
90 days' advance notice to the United States, may postpone any
payment falling due as hereinabove provided, except those falling
due on or before December 15, 1930, hereinafter referred to in paragraph 5 of this agreement, to any subsequent June 15 or December
,15 not more than two years distant from its due date, but only on
condition that in case Esthonia shall at any time exercise this option
as to any payment of principal, the payment falling due in the next
succeeding year can not be postponed to any date more than one
year distant from the date when it becomes due unless and until
the payment previously postponed shall actually have been made,
and the payment falling due in the second succeeding year can not
be postponed at all unless and until the payment of principal due
two years previous thereto shall actually have been made.
3. Form of bond.—All bonds issued or to be issued hereunder to
the United States shall be payable to the Government of the United
States of America, or order, shall be issued in such denominations
as may be requested by the Secretary of the Treasury of the United
States, substantially in the form set forth in the exhibit hereto an-




311

SECRETARY OF THE TREASURY

nexed and marked ^^Exhibit A,'' and shall be signed for Esthonia by
its Envoy Extraordinary and Minister Plenipotentiary at Washington,
or by its other duly authorized representative. The $13,830,000
principal amount of bonds first to be issued hereunder shall be issued
in 62 pieces, in denominations and with maturities corresponding to
the annual payments of principal hereinabove set forth.
4. Payment of interest.—All bonds issued or to be issued hereunder
shall bear interest, payable semiannually on June 15 and December
15 in each year, at the rate of 3 per cent a year from December 15,
1922, to December 15, 1932, and thereafter at the rate of 3 K por
cent a year until the principal thereof shall have been paid.
5. Method of payment.—All bonds issued or to be issued hereunder
shall be payable, as to both principal and interest, in United States
gold coin of the present standard of value, or, at the option of
Esthonia, upon not less than thirty clays' advance notice to the United
States, in any obligations of the United States issued after April 6,
1917, to be taken at par and accrued interest to the date of payment
hereunder: Provided, however, that with reference to the payments on
account of principal and/or interest falling due hereunder on or
before December 15, 1930, Esthonia, at its option, may pay the following amounts on the dates specified:
June
Dec.
June
Dec.
June
Dec.

15,
15,
15,
15,
15,
15,

1926
1926.
1927.
1927
1928
1928

$50, 000
50, 000
75, 000
. . . . 75,000
100,000
._ 100,000

June
Dec.
June
Dec.

15,
15,
15,
15,

1929
1929
1930
1930

Total

...

$125, 000
125, 000
150, 000
150, 000
1,000,000

and the balance, including interest on all overdue payments at the
rate of 3 per cent a year from their respective due dates, in bonds of
Esthonia dated December 15, 1930, bearing interest at the rate of 3
per cent a year from December 15, 1930, to December 15, 1932, and
thereafter at the rate of 3 3^ per cent a year until the principal thereof
shall have been paid, such bonds to mature serially on December 15
of each year up to and including December 15, 1984, substantially in
the manner provided in paragraph 2 of this agreement, and to be substantially similar in other respects to the bonds first to be issued
hereunder.
All payments, whether in cash or in obligations of the United
States, to be made by Esthonia on account of the principal of or
interest on any bonds issued or to be issued hereunder and held by
the United States, shall be made at the Treasury of the United
States in Washington, or, at the option of the Secretary of the
Treasury of the United States, at the Federal Keserve Bank of New
York, and if in cash shallbe made in funds immediately available on
the date of payment, or if in obligations of the United States shall be
in form acceptable to the Secretary of the Treasury of the United
States, under the general regulations of the Treasury Department
governing transactions in United States obligations.
6. Exemption from taxation.—The principal and interest of all
bonds issued or to be issued hereunder shall be paid without deduction
for, and shall be exempt from, any and all taxes or other public dues,
present or future, imposed by or under authority of Esthonia or any
political or.local taxing authority within the Kepublic of Esthonia,.
whenever, so long as, and to the extent that beneficial ownership is




312

"

REPORT ON T H E FINANCES

in {a) the Government of the United States,- (b) a person, firm, or
association neither domiciled nor ordinarily resident in Esthonia, or
(c) a corporation not organized under the laws of Esthonia.
7. Payments before maturity.—Esthonia, at its option, on-'any
interest date or dates, upon not less than ninety days' advance
notice to the United States, may make advance payments in amounts
of $1,000 or multiples thereof, on account of the principal of any
bonds issued or to be issued hereunder and held by the United States.
Any such advance payments shall first be applied to the prmcipal of
any bonds which shall have been issued hereunder on ac/)Ount of
prmcipal and/or interest accruing between December 15, 1922, and
December 15, 1930, and then to the principal of any other bonds
issued hereunder and held by the United States, as may be indicated
by Esthonia at the time of the payment.
8. Exchange for marketable obligations.—Esthonia will issue to the
United States at any time, or from time to time, at the request of the
Secretary of the Treasury of the United States, in exchange for any
or all of the bonds issued or to be issued hereunder and held by the
United States, definitive engraved bonds in form suitable for sale to
the public, in such amounts and denominations as the Secretary of
the Treasury of the United States may request, in bearer form,
with provision for registration as to principal, and/or in fully registered form, and otherwise on the same terms and conditions, as to
dates of issue and maturity, rate or rates of interest, exemption from
taxation, payment in obligations of the United States issued after
April 6, 1917, and the like, as the bonds surrendered on such exchange.
Esthonia will dehver definitive engraved bonds to the United States
in accordance herewith within six months of receiving notice of any
such request from the Secretary of the* Treasury of the United States,
and pending the delivery of the definitive engraved bonds will deliver,
at the request of the Secretary of the Treasury of the United States,
temporary bonds or interim receipts in form satisfactory to the
Secretary of the Treasury of the United States within 30 days of
the receipt of such request, all without expense to the United States.
The United States, before offering any such bonds or interim receipts
for sale in Esthonia, will first offer them to Esthonia for purchase at
p a r and accrued interest, and Esthonia shall likewise have the option,
in lien of issuing any such bonds or interim receipts, to make advance
redemption, at par and accrued interest, of a corresponding principal
amount of bonds issued or to be issued hereunder and held by the
United States. Esthonia agrees that the definitive engraved bonds
called for by this paragraph shall contain all such provisions, and
that it will cause to be promulgated all such rules, regulations, and
orders as shall be deemed necessary or desirable by the Secretary of
the Treasury of the United States in order to facilitate the sale of the
bonds in the United States, in Esthonia, or elsewhere, and that if
requested by the Secretary of the Treasury of the United States, it
will use its good offices to secure the listing of the bonds on such
stock exchanges as he may request.
9. Cancellation and surrender of obligations.—Upon the execution
of this agreement, the payment to the United vStates of cash in the
sum of $1,441.88 as provided in paragraph 1 of this agreement and
the delivery to the United States of the $13,830,000 principal amount
of bonds of Esthonia first to be issued hereunder, together with satis-




SECRETARY OF THE TREASURY

313

factory evidence of authority for the execution of this agreement
and the bonds on behalf of Esthonia by its Envoy Extraordinary and
Minister Plenipotentiary at Washington, or by its other duly authorized representative, the United States will cancel and surrender to
Esthonia, at the Treasury of the United States in Washington, the
obligations of Esthonia in the principal amount of $13,999,145.60
described in the preamble to this agreement.
10. Notices.—Any notice, request, or consent under the hand of
the Secretary of the Treasury of the United States, shall be deemed
and taken as the notice, request, or consent of the United States, and
shall be sufficient if delivered at the Legation of Esthonia at Washington or at the office of the Minister of Finance in Tallinn; and any
notice, request, or election from or by Esthonia shall be sufficient if
delivered to the American Legation at Tallinn or to the Secretary of
the Treasury at the Treasury of the United States in Washington.
The United States in its discretion may waive any notice required
hereunder, but any such waivei* shall be in writing and shall not
extend to or affect any subsequent notice or impair any right of the
United States to require notice hereunder.
11. Compliance with legal requirements.—Esthonia represents and
agrees that the execution and delivery of this agreement have in all
respects been duly authorized, and that all acts, conditions, and legal
formalities which should have been completed prior to the making
of this aOTeement and the issuance of bonds hereunder have been
completed as required by the laws of Esthonia and in conformity
therewith.
12. Counterparts.—This agreement shall be executed in two
counterparts, each of which shall have the force and effect of an
original.
In witness whereof Esthonia has caused this agreement to be
executed on ,its behalf by its Envoy Extraordinary and Minister
Plenipotentiary at Washington, thereunto duly authorized, subject,
however, to the approval of the State Assembly, and the United
States has likewise caused this agreement to be executed on its
behalf by the Secretary of the Treasury, as chairman of the World
War Foreign Debt Commission, with the approval of the President,
subject, however, to the approval of Congress, pursuant to the act
of Congress approved February 9, 1922, as amended by the act of
Congress approved February 28, 1923, and as further amended by
the act of Congress approved January 21, 1925, all on the day and
year first above written.
T H E REPUBLIC OF ESTHONIA,

By A. Pnp,
Envoy Extraordinary and Minister Plenipotentiary.
T H E U N I T E D STATES OF AMERICA,

For the World War Foreign Debt Commission:
By

A. W.

MELLON,

Secretary of the Treasiiry and Chairman of the Commission.
Approved:




CALVIN COOLIDGE,

President.

314

REPORT ON THE FINANCES
EXHIBIT A
(Form of bond)
THE

REPUBLIC

OF

ESTHONIA

$

No.
The Republic of Esthonia, hereinafter called Esthonia, for value received, promises to pay to the Government of the United States of
America, hereinafter called the United States, or order, on December
15,
, the sum of
dollars ($
), and to pay interest
upon said principal sum semiannually on June 15 and December 15
in each year, at the rate of three per cent a year from December 15,
1922, to December 15, 1932, and at the rate of three and one-half per
cent a year thereafter until the principal hereof shall have been paid.
This bond is payable as to both principal and interest in gold coin of
the United States of America of the present standard of value, or, at
the option of Esthonia, upon not less than thirty days' advance
notice to the United States, in any obligations of the United States
issued after April 6, 1917, to be taken at par and accrued interest to
the date of pa3'^ment hereunder.
This bond is payable as to both principal and interest without deduction for, and is exempt from, any and all taxes and other public
dues, present or future, imposed by or under authority of Esthonia
or any political or local taxing authority within the Republic of
Esthonia, whenever, so long as, and to the extent that, beneficial
ownership is in (a) the Government of the United States, (b) a person,
firm, or association neither domiciled nor ordinarily resident in Esthonia, or (c) a corporation not organized under the laws of Esthonia.
This bond is payable as to both principal and interest at the Treasury
of the United States in Washington, D. C , or at the option of the
Secretary of the Treasury of the United States at the Federal Reserve Bank of New York.
This bond is issued under an Agreement dated October 28, 1925,
between Esthonia and the United States, to which this bond is subject and to which reference is hereby made.
In witness whereof, Esthonia has caused this bond to be executed
in its behalf at the City of Washington, District of Columbia, by
its
at Washington, thereunto duly authorized, as of December 15, 1922.
T H E REPUBLIC

OF E S T H O N I A :

By
EXHIBIT
STATEMENT GIVEN

TO

THE PRESS

70
OF THE

REMARKS OF

THE

FRENCH M I N I S T E R OF FINANCE AND SECRETARY MELLON AT
THE OPENING OF NEGOTIATIONS FOR THE SETTLEMENT OF
THE INDEBTEDNESS OF FRANCE TO THE UNITED STATES
SEPTEMBER

24,

1925.

At the opening to-day of the negotiations for a settlement of the
French debt, M. Caillaux, the Minister of Finance, addressed the
American commission as follows:
Mr. CHAIRMAN, GENTLEMEN:

I have come from France, intrusted by my government, to meet the obligations
of my country towards the United States.
Highly appreciated members of our Parliament, belonging to all parties,
chairmen or reporters of the financial and trade commissions of the upper and



SECRETARY OF T H E TREASURY

315

lower House have been so kind as to accompany me. Like myself, these gentlemen have the greatest desire to reach a settlement.
We do not forget and no one in our country will ever forget what we owe to
America for her splendid work to end victoriously the war and for the generous
help our people received from citizens of the United States in time of need. We
neither forget and we feel sure nobody on this side of the Atlantic forgets the ties
knotted between both our countries at the end of the eighteenth century.
Now, if you wish, we will go to work as practical men, desirous to come to a
settlement satisfactory for all material interests, worthy of the past of the two
great nations, combined in such a way as to fortify peace and help the economic
stabilization in the world.

Secretary of the Treasury Mellon, chairman of the American
World War Foreign Debt Commission, replied:
One by one the world is overcoming the effects of the war which so long after
its termination linger with us. The Dawes plan is a forward step towards
economic stability in Europe. The reconstruction of devastated areas approaches
conclusion; governmental expenditures becoming more regular, more certain of
estimation and more possible of being met through taxation; and budgets approaching equilibrium. There still remain, however, loose ends to be gathered in.
War and postwar governmental debts in many cases remain unsettled.
To establish the binding character of an international promise and to protect
its own citizens, the creditor nation must seek adjustment. To keep good its
word and to give itself time to recover its prosperity, the debtor nation must
determine its future liabilities. No concern can successfully be reorganized in the
face of an unfunded demand obligation. So we meet here in council as business
men to conclude the one matter which is in controversy between our two countries.
We were glad to receive the help which France extended to us when we were
fighting for our independence, and we were eager to make some return in France's
own. great need. The war .is over, but we minimize neither the burdens France
has borne nor the difficulties which menace her future. Through the necessity
of recreating her destroyed productivity, through postponement of reimbursement from the destroyer, her present fiscal situation has been permitted to become impaired. We should make allowance for this condition. France now
faces, however, all of the facts under a strong leadership and with the courage
which withstood the assaults at Verdun. The condition is not permanent.
France will emerge successfully from her difficulties.
We know that this,conference opening to-day may influence greatly the peace
of the world. We ourselves can not escape its repercussions. We feel, therefore, the great responsibility resting upon us. It is our duty to reach with you a
conclusion, in the estimation of each of our peoples, fair; and in the practical
test of time, workable. In the constructive attitude of the representatives of
the two countries who now meet together, a solution will come.
Mr. Minister and gentlemen, I welcome you here.
EXHIBIT

71

STATEMENT GIVEN TO THE PRESS OF
RETARY MELLON AND THE ITALIAN
AT THE OPENING OF NEGOTIATIONS
OF THE INDEBTEDNESS OF ITALY TO

THE REMARKS OF SECMINISTER OF FINANCE
FOR THE SETTLEMENT
THE UNITED STATES
N O V E M B E R 2,

1925.

The Secretary greeted the Italian Commission:
The American Commission wishes to express to you our pleasure in meeting you
here in Washington around the table for a frank discussion of the matters involved
in the debt settlement.
We thank you for the complete economic, fiscal, and social studies of the condition of Italy which were prepared for us as the result of our preliminary conferences with your ambassador and Mr. Alberti last summer. We are studying
your documentation in connection with similar investigations by ourselves.
I wish to express our appreciation of the exhaustive nature of the documents you
have furnished us and of the prompt arrival in America of your commission with
authority to settle the war debt of our two nations.




316"

REPORT ON" THE FINANCES

We recognize fully Italy's efforts during and since the war. It is especially in the
. afterwar period that Italy's constructive ability has drawn to her the attention
of the world. Sound policies under the forceful direction of Premier Mussolini
have radically reduced government expenditures, increased revenue, and balanced
Italy's budget. This is a governmental achievement worthy of highest praise.
We know, too, something of the difficulties Italy must face owing to natural
conditions and the heavy fiscal burden imposed by the war. We believe, however, that with a continuation of your present political and economic stability
Italy is assured its position as a great nation.
In negotiating with you a settlement of the debt this, commission will apply the
principle of Italy's capacity to pay and will give due weight to the special conditions existing in your situation. We will, I am sure, come to terms which will be
" within Italy's power to fulfill without undue pressure upon her or her people and
which will also recognize the sacrifices made by the American taxpayer in the
advances of our Treasury. We two nations desire a just settlement which will
insure economic peace.

Count Volpi, head of the Italian Commission, in conveying to the
American Commission his thanks, laid stress upon the help given
Italy by America in the war and the burden of that war upon Italy
and her people. He then said:
When peace—which America, with such great authority, helped protect all over
the world—was assured, Italy, notwithstanding her extremely difficult financial
situation, offered to settle her war debt with the United States, within the limitsof her capacity to pay.
This acknowledgment of her debt constituted an obligation of honor which
Italy intended and intends to absolve; and to this end she resolved that the head
of the delegation sent to the United States should, aside from my modest self, be
her own minister of finance, in order to add to the solemnity of her pledge.
Upon starting the present negotiations, Italy accepts the principle laid down,
by the American Debt Commission that each debtor nation shall be considered
independently and shall repay its debt within its particular capacity to pay.
In determining capacity of a nation the report of the Dawes Commission hasshown that there are two principal elements—first, the capacity to collect in a
country from its people the necessary money, and, second, the transfer of the
money so collected in the national currency to the creditor country in the currency of the latter.
In order to show to the American Commission Italy's capacity to pay in these
two regards, there has been prepared and submitted to the American Commission a documentation of 24 monographs composed of material gathered along;
scientific lines by the most prominent Italian statisticians and economists.
These monographs show:
(1) Italy's burden in the war was equal to 30 per cent of her total national
wealth. She lost 652,000 men and 458,000 of her youths were disabled.
(2) Italy received no valuable colonies out of the war.
(3) Italy's share of reparations is 10 per cent as against 52 per cent allotted to
France and 22 per cent to Great Britain.
(4) Italy, by immense sacrifices, has balanced her budget, reduced her governmental expenditures, and is the only great power whose military expendituresare to-day less than they were before the war.
(5) Italy has been the only nation to tax war profits at 100 per cent and tolevy a capital tax.
(6) The burden of taxation in Italy, taking into account the national wealth
and the national income, is higher than that of any other country—38 per cent
of her net income after deducting a minimum of subsistence.
(7) Italy has none of the principal raw materials. She must import food and
all her requirements in oil, coal, cotton, iron, and-copper.
(8) With her constantly increasing population it is doubtful if Italy's industrial development keeps pace with the increased demands of her population.
(9) Italy's balance of trade has always been adverse. During the past nine
months she exported 13 billion of lire, and imported 20 billion, a balance against
her of 7 billion lire. During this period Italy imported from the United States
5 billion of lire, and exported to the United States 1.331 billion of lire; that is
to say, her imports from America were nearly four times her exports to this
countrv.




SECRETARY OF THE TREASURY

317

In fact, I believe that once relations as of debtor and creditor existing between
Italy and the United States are definitely settled, a new and larger basis will be
created for the development of fruitful economic relations between Italy, a
young nation, poor in natural resources but rich in capacity to work and to produce, and the wealthy American Republic which has already contributed so
much to the economic development of all the world, under the enlightened and
wise guidance of its President Calvin Coolidge and of the Government which
assists him in his worthy endeavors.
EXHIBIT

72

STATEMENT GIVEN TO THE PRESS BY THE WORLD WAR FOREIGN
DEBT COMMISSION IN CONNECTION WITH THE SETTLEMENT
OF THE INDEBTEDNESS O F ITALY TO THE UNITED STATES
NOVEMBER 12,

1925.

. An agreement has been reached in settlement of the Italian Debt
subject to the approval of Congress. I t has been approved by
President Coolidge.
The amount to be funded as of June 15, 1925, is the original indebtedness of $1,648,000,000, plus accrued interest to date as in other
recent settlements. The Itahan Government agrees to the repayment of this amount of $2,042,000,000 upon proportionately the
same schedule of annual installments over 62 years, as in the agreement with Great Britain, except during the first five years the payments are to be five million annually, and the balance of these
payments is spread over the subsequent years.
After the first five years interest is fixed at 3^ of one per cent for
ten years and then increases for successive ten year periods to 34 of
one per cent, J^ of one per cent, % of one per cent and 1 per cent
and the last seven years are at 2 per cent.
Under this arrangement the total annual payments begin at
$5,000,000 and reach $80,000,000 in the last year. For an original
debt of $1,648,000,000 the United States will receive during the
period of the agreement a total of $2,407,000,000.
The basis of settlement has been repayment of principal in full
and payment of interest in accordance with the capacity of Italy
to pay.
The Commission has made a most exhaustive examination of Italy's
fiscal and economic situation. Italy is poor in natural resources.
The visible balance of trade is adverse. Food to support her rapidly increasing population, coal, oil, iron and. copper, have to be
imported. Her future depends upon the development of her industry and the labor of her people.
I t is felt that the settlement lays as heavy a burden upon the Italian people as we are justified in imposing, and represents Italy's
capacity to pay.
A final agreement is being drafted and should be signed Saturday.
Count Volpi said:
The Italian delegation brought over from Italy a complete study of Italy's
economic and fiscal situation. With the American Commission the Italian
^delegation has gone over its documentations with great thoroughness and I
believe that the American Commission has been impressed with the justice of
Italy's case. I feel that we have succeeded in presenting a true picture of Italy's
situation to the American Commission in the twelve days we have been with them.




318

R E P O R T O N T H E FINANCES

but I know the difficulty of carrying this picture to the 110,000,000 people of the
United States. I trust that the American public will itself study these matters.
The entire Italian delegation has been impressed with the fairness of the
American Commission and their evident desire to do justice to Italy and to
^protect the American taxpayer. Recognition has .been given to the present
d.ifl5cultsitua;tL0n and confidence has been shown in Italy's future. The settlement as'finally made is larger than we thought in the beginnirig we could agree to.
Italy has, however, always met her international obligations. She has done so
in this case. The settlement is a long step towards the restoration of economic
peace in Europe.

Years

1-5
6-15
16-25
26-35

Approximated total
payments
in
millions
5
14-18
20-26
31-38

Approximated total
payments
in
millions

Years

36-45:.
46-55
65-62. . . .

.

:

.
.

J

43-52
56-67
73-80

E X H I B I T 73

S T A T E M E N T GIVEN TO THE PRESS OF THE REMARKS OF COUNT
VOLPI AND SECRETARY MELLON AT THE SIGNING OF THE
AGREEMENT FOR THE SETTLEMENT OF THE INDEBTEDNESS OF
ITALY TO THE UNITED STATES
NOVEMBER 14,

1925.

The Italian-American debt settlement agreement was signed at
eleven o'clock to-day by Count Volpi for Italy and by Secretary
Mellon for the United States and has been approved by the President.
Count Volpi said:
I do not think I can close in a more appropriate way the proceedings of these
meetings on our part than by communicating to you the following message which
I just received from Premier Mussolini:
'*I desire to express my full appreciation of the settlement reached which represents a happy conciliation, of interests, as well as the acknowledgment of the
justice of our case and of our real capabilities..
''Please convey to the members of the American Commission the expression
of my gratification, ^voicing,the sentiments of the Italian People.
''The good will shown by the American Commisisibn in reachirig a settlement,
evidences their appreciation of Italy's efforts during and after the war.
"The conclusion of the agreement will help make the bonds of friendship
between the two countries still closer. It will be a powerful stimulus for the
development of economic intercourse and relations between Italy and the United
States, adding a favorable element to general stabilization."

Mr. Mellon replied:
You came here to disclose to us all of the factors involved in Italy's capacity to
pay. We met you with an open mind and the two weeks full discussion of your
situation^ has brought the two comniissions together upon what we, believe is a
settlement fair to each nation. By the agreement we have' just signed Italy
recognizes to her full capacity the integrity of her international obligations, we
have eliminated in the relations of the two countries a matter disturbing if left
unsettled, and we have added one more stone to the rebuilding of Europe's financial structure.
Will you express to Premier Mussolini our appreciation of the character of the
delegation which he sent to America and of the will to reach an agreement with
which they were inspired.




319

SECRETARY OF THE TREASURY
EXHIBIT

74

AGREEMENT FOR THE FUNDING OF THE DEBT OF

THE UNITED STATES

ITALY TO

A G R E E M E N T made the fourteenth day of November, 1925, at the
City of Washington," District of Columbia, between the K I N G DOM OF ITALY, hereinafter called ITALY, party of the first
part, and the U N I T E D STATES OF AMERICA, hereinafter
called the U N I T E D STATES, party of the second part
WHEREAS, Italy is indebted to the United States as of June 15,
1925, upon obligations in the aggregate principal amount of $1,647,869,197.96, together with intefest accrued and unpaid thereon; and
WHEREAS, Italy desires to fund said indebtedness to the United
"States, both principal and interest, through the issue of bonds to the
United States, and the United States is prepared to accept bonds
from Italy upon the terms hereinafter set forth;
Now, therefore, in consideration of the premises and of the mutual
covenants herein contained, it is agreed as follows:
1. Amount of Indebtedness.—The amount of indebtedness to be
funded, after allowing for certain.cash payments made or to be made
by Italy is $2,042,000,000, which has been computed as follows:
Obligations taken for cash advanced by
Treasury
$1, 648, 034, 050. 90
Accrued and unpaid interest at 434 %
per annum to December 15, 1922
251, 846, 654. 79
$1, 899, 880, 705. 69

Accrued interest at 3 % per annum from
December 15, 1922, to June 15, 1925_-

142, 491, 052. 93
2, 042, 371, 758. 62

Deduct payments made on account of
principal since December 15, 1922___
Interest on principal payments at 3 %
per annum to June 15, 1925

$164, 852. 94
7, 439. 34
$172, 292. 28

Total'net Indebtedness" as of June
15, 1925
To be paid in cash upon execution of
agreement

$2, 042, 199, 466. 34

Total indebtedness to be funded
into bonds

$2, 042, 000, 000. 00

199, 466. 34

2. Payment.-—In order to provide for the payment of the indebtedness thus to be funded Italy will issue to the United States at par
bonds of Italy in the aggregate principal amount of $2,042,000,000,
dated June 15, 1925, and maturing serially on the several dates and
in the amounts fixed in the following schedule:
June 15—
1926
1927
_.
1928
1929____.__1930
1931
1932
1933
1934
1935

$5, 000, 000
5, 000, 000
5, 000, 000
5, 000, 000
5, 000, 000
12, 100, 000
.__ 12, 200, 000
12, 300, 000
12, 600, 000
13, 000, 000




1936
1937
1938
1939
1940
1941
1942
1943
1944
1945

June 15—
-

-

.

$13, 500, 000
14, 200, 000
14, 600, 000
15, 200, 000
15, 800, 000
16, 400, 000
17, 000, 000
17, 600, 000
18, 300, 000
- - - 19. 000, 000

320
June 1 5 —
1946
1947
_
•
1948
1949
1950
1951
1952
1953
1954___
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967

REPORT ON T H E FINANCES
June 15$19,
20,
20,
21,
22,
23,
23,
24,
25,
26,
27,
28,
29,
30,
31,
32,
33,
34,
35,
36,
38,
39,

600,
000,
600,
200,
000,
000,
800,
600,
400,
500,
500,
500,
600,
500,
500,
500,
500,
500,
500,
500,
000,
500,

000
000
000
000
000
000
000
000
000
000
000
000
000
000
000
000
000
000
000
000
000
000

19681969_
1970_
1971.
1972.
1973.
1974.
1975.
1976.
1977.
1978.
1979.
1980.
19811982.
19831984.
198519861987Total

$41, 500, 000
43, 500, 000
44, 500, 000
46,000,000
47, 500, 000
49, 000, 000
50, 500, 000
52, 000, 000
54, 000, 000
56, 000, 000
59, 000, 000
61, 000, 000
62, 000, 000
64, 000, 000
67, 000, 000
69, 000, 000
72, 000, 000^
74, 000, 000
77, 000, 000
79, 400, 000
$2,042,000,000

PROVIDED, HOWEVER, That Italy, at its option, upon not less than
ninety days' advance notice to the United States, may postpone any
payment on account of principal falling due as hereinabove provided, after June 15, 1930, to any subsequent June 15 or December
15 not more than two years distant from its due date, but only on
condition that in case Italy shall at any time exercise this option as to
any payment of principal, the payment falling due in the second succeeding year can not be postponed at all unless and until the payments
of principal due two years and one year previous thereto shall actually have been made. All such postponed payments of principal
shall bear interest at the rate of 4J^% per annum payable semiannually.
3. Form of Bond.—All bonds issued or to be issued hereunder to
the United States shall be payable to the Government of the United
States of America, or order, and shall be signed for Italy by its Ambassador at Washington, or by its other duly authorized representative. The bonds shall be substantially in the form set forth in the
exhibit hereto annexed and marked ^'Exhibit A'', and shall be issued
in 62 pieces with maturities and in denominations as hereinabove set
forth and shall bear no interest until June 15, 1930, and thereafter
shall bear interest at the rate of Y^ of 1% per annum from June 15,
1930, to June 15, 1940; at the rate of K of 1% per annum from June
15, 1940, to June 15, 1950; at the rate of K of 1% per annum from
June 15, 1950, to June 15, 1960; at the rate of % of 1% per annum
from June 15, 1960, to June 15, 1970; at the rate of 1% per annum
from June 15, 1970, to June 15, 1980, and at the rate of 2 % per
annum after June 15, 1980, all payable semiannually on June 15 and
December 15 of each year.
4. Method of Payment.—All bonds issued or to be issued hereunder
shall be payable, as to both principal and interest, in United States
gold coin of the present standard of value, or, at the option of Italy,




SECRETARY OF T H E

TREASURY

321

upon not less than thirty days' advance notice to the United States,
in any obligations of the United States issued after April 6, 1917, to
be taken at par and accrued interest to the date of payment hereunder.
All payments, whether in cash or in obligations of the United
States, to be made by Italy on account of the principal of or interest
on any bonds issued or to be issued hereunder and held by the United
States, shall be made at the Treasury of the United States in Washington, or, at the option of the Secretary of the Treasury of the United
States, at the Federal Reserve Bank of New York, and if in cash shall
be made in funds immediately available on the date of payment, or
if in obligations of the United States shall be in form acceptable to
the Secretary of the Treasury of the United States under the general
regulations of the Treasury Department governing transactions in
United States obligations.
5. Exemption from Taxation.—The principal and interest of all
bonds issued or to be issued hereunder shall be paid without deduction for, and shall be exempt froni, any and aU taxes or other public
dues, present or future, imposed by or under authority of Italy or
any political or local taxing authority within Italy, whenever, so long
as, and to the extent that beneficial ownership is in (a) the Government of the United States, (b) a person, firm, or association neither
domiciled nor ordinarily resident in Italy, or (c) a corporation not
organized under the laws of Italy.
6* Payments before Maturity.—Italy, at its option, on June 15 or
December 15 of any year, upon not less than ninety days' advance
notice to the United States, may make advance payments in amounts
of $1,000 or multiples thereof, on account of the principal of any
bonds issued or to be issued hereunder and held by the United States*
Any sucH advance payments shall be applied to the principal of such,
bonds as may be indicated by Italy at the time of the payment.
7. Exchange for Marketable Obligations.—It^lj will issue to the
United States at any time, or from time to time, at the request of the
Secretary of the Treasury of the United States, in exchange for any
or aU of the bonds issued hereunder and held by the United States,
definitive engraved bonds in form suitable for sale to the public, in
such amounts and denominations as the Secretary of the Treasury
of the United States may request, in bearer form, with provision for
registration as to principal, and/or in fully registered form, and otherwise on the same terms and conditions, as to dates of issue and maturity, rate or rates of interest, if any, exemption from taxation,
payment in obligations of the United States issued after April 6, 1917,
and the like, as the bonds surrendered on such exchange. Italy will
deliver definitive engraved bonds to the United States in accordance
herewith within six months of receiving notice of any such request
from the Secretary of the Treasury of the United States, and pending
the delivery of the definitive engraved bonds will deliver, at the
request of the Secretary of the Treasury of the United States, temporary bonds or interim receipts in form satisfactory to the Secretary
of the Treasury of the United States within thirty days of the receipt
of such request, aU without expense to the United States. The
60501—FI 1925t




21

322

REPORT ON T H E FINANCES

United States, before offering any such bonds or interim receipts for
sale.in Italy, will first offer them to Italy for purchase at par and
accrued interest, if any, and Italy shall likewise have the option, in
lieu of issuing any such bonds or interim receipts, to make advance
redemption, at par and accrued interest, if any, of a corresponding
principal amount of bonds issued hereunder and held by the United
States. Italy agrees that the definitive engraved bonds called for b y
this paragraph shall contain all such provisions, and that it will
cause, to be promulgated all such rules, regulations, and orders as
shall be deemed necessary or desirable by the Secretary of the Treasury of the United States in order to facilitate the sale of the bonds in
the United States, in Italy or elsewhere, and that if requested by the
Secretary of the Treasury of the United States, it will use its good
offices to secure the listing of the bonds on such stock exchanges as
the Secretary of the Treasury of the United States may specify.
8. Cancellation and Surrender of Obligations.—Upon the execution
of this Agreement, the delivery to the United States of the principal
amount of bonds of Italy to be issued hereunder, together with satis^
factory evidence of authority for the execution of this Agreement by
the representative of Italy and for the execution of the bonds to be
issued hereunder, the United States will cancel and surrender to
Italy at the Treasury of the United States in Washington, the obligations of Italy held by the United States.
9. Notices.—Any notice, request, or consent under the hand of
the Secretary of the Treasury of the United States, shall be deemed
and taken as the notice, request, or consent of the United States,
and shall be sufficient if delivered at the Embassy of Italy at Washington or at the office of the Ministry of Finance at Rome; and any
notice, request, or election from or by Italy shall be sufficient if delivered to the American Embassy at Rome or to the Secretary of the
Treasury at the Treasury of the United States in Washington. The
United States in its discretion may waive any notice required hereunder, but any such waiver shall be in writing and shall not extend
to or affect any subsequent notice or impair any right of the United
States to require notice hereunder.
10. Compliance with Legal Requirements.—Italy represents arid
agrees that the execution and delivery of this Agreement have in all
respects been duly authorized and that all acts, conditions, and
legal formalities which should have been completed prior to the making of this Agreement have been completed as required by the laws
of Italy and in conformity therewith.
11. Counterparts.—This Agreement shall be executed in two counterparts, each of which shall have the force and effect of an original.
I N WITNESS W H E R E O F Italy has caused this Agreement to
be executed on its behah by Giuseppe Volpi di Misurata, its Plenipotentiary at Washington, thereunto duly authorized, subject, however, to ratification in Italy, and the United States has likewise
caused this Agreement to be executed on its behalf by the Secretary
of the Treasury, as Chairman of the World War Foreign Debt Commission, with the approval of the President, subject, however, to
the approval of Congress, pursuant to the Act of Congress approved
February 9, 1922, as amended by the Act of Congress approved Feb-




32S

SECRETARY OF THE TREASURY

ruary 28, 1923, "and as further amended by the Act of Congress approved January 21, 1925, all on the day and year first above written..
T H E KINGDOM OF ITALY,
By G I U S E P P E V O L P I DI MISURATA,
T H E U N I T E D STATES O F AMERICA^

For the World War Foreign Debt
Commission:
By A. W. M E L L O N ,

Secretary of the Treasury and Chairman of the Commission^
Approved:
CALVIN

COOLIDGE,

President.
E X H I B I T 75

S T A T E M E N T GIVEN TO THE PBESS BY THE WORLD WAR FOREIGN
DEBT COMMISSION AT THE OPENING OF NEGOTIATIONS FOR
THE SETTLEMENT OF THE INDEBTEDNESS OF RUMANIA TO THE
UNITED STATES•
NOVEMBER 9,

1925.

At the first meeting of the Rumanian Delegation with the American World War Foreign Debt Commission, Chairman Mellon welcomed them to this country and expressed the belief of the American
Commission that an amicable settlement would be reached fair to both,
nations.
Mr. Titulesco, president of the Rumanian Delegation, replied:
On coming in touch with the United States World War Foreign Debt Commission, the first task of the Humaniain Delegation is to express our deep gratitude for the help received from the United States in the difiicult years we had to
pass during the great war.
The second task of the Rumanian Delegation is to tell you that we have come
here in the firm intention of reaching a settlement which will allow Rumania to
pay her debt to the United States Government on terms to be agreed upon;
between us, which will take into account, among other factors of the problem, our
present possibilities and their future development, so that both countries will
be mutually satisfied.
I wish to end by assuring the honorable commission that you will find in us
delegates animated not only by the consciousness of our obligations and the
exigencies of justice, but also negotiators of a practical turn of mind, who wiJI
endeavor to remain all the time on the solid ground of reality, which in our opinion
is an essential condition for the successful outcome of our mission.
EXHIBIT

76

INTEREST C O L L E C T E D BY FISCAL YEARS FROM JUNE 1, 1 9 1 3 ,
TO JUNE 30, 1925, ON DEPOSITS OF GOVERNMENT FUNDS W I T H
NATIONAL-BANK DEPOSITARIES, INSULAR DEPOSITARIES, AND
FOREIGN DEPOSITARIES
1913
1914
1915
1916__.
1917
1918
1919

._

$122, 218. 89
1, 409, 426. 07
1, 222, 706. 93
791, 671. 45
703, 77L 76
1, 134, 569. 09
5, 507, 742. 43

I Amended figures.




1920
1921
1922_1923
1924
1925

.. $1, 865, 975. 76.
2, 580, 746. 84
865, 848. 30
584, 192. 95
1 570, 336. 05
2 533^ 896. 35

^ Incomplete and subject to revision.

324

EEPORT ON" T H E EUSTAIsTCES
EXHIBIT

77

INTEREST COLLECTED TO J U N E 30, 1925, BY FEDERAL RESERVE
D I S T R I C T S , ON D E P O S I T S I N SPECIAL D E P O S I T A R I E S ON ACCOUNT OF SALES O F L I B E R T Y BONDS, V I C T O R Y NOTES, T R E A S U R Y NOTES, AND C E R T I F I C A T E S O F I N D E B T E D N E S S , AND I N C O M E AND P R O F I T S T A X P A Y M E N T S , U N D E R A C T S O F APRIL.;
2 4 , 1 9 1 7 , S E P T E M B E R 2 4 , 1 9 1 7 , A P R I L 4, 1 9 1 8 , J U L Y 9, 1 9 1 8 ,
S E P T E M B E R 2 4 , 1 9 1 8 , A N D M A R C H 3, 1 9 1 9

Federal reserve district

Boston...
N e w York
^...
Philadelphia
Cleveland..
Richmond
Atlanta
N e w Orleans b r a n c h . .
Chicago
St. Louis
Minneapolis
Kansas City
^Dallas
S a n Francisco
Total

F e d e r a l reserve district

Boston..
.
New York
Philadelphia
Cleveland..--.....
Richmond
Atlanta
N e w Orleans b r a n c h . .
Chicago.St. Louis
-....
Minneapolis
Kansas City
Dallas...
S a n Francisco

Total..

A p r . 24 to
J u n e 30,
1917

Fiscal year
J u l y 1, 1917
to J u n e 30,
1918

Fiscal year
J u l y 1, 1918
to J u n e 30,
1919

Fiscal year
J u l y 1, 1919
to J u n e 30,
1920

Fiscal year
J u l y 1, 1920
to J u n e 30,
1921

$5, 340. 47 $1, 252, 390. 26 $1, 872, 782. 67 $818, 214. 39
$329, 002. 71
338, 480. 60 4,904, 637. 35 9,689, 021. 74 5, 224, 046. 11 1, 742, 118. 061, 044. 64
757, 344. 83 1, 656, 104. 38
700, 612. 29
326, 357. 00
882, 228. 69
269, 748. 24
1, 093, 702.40 1, 569, 142. 58
696, 026. 03
90, 524. 55
352, 238. 82
210, 113. 66
347, 716. 97
236, 720. 03
33, 575.17
252. 06
124, 275. 95
167, 145. 88
102, 349. 52
29, 191.96
86, 653. 09
247, 372. 69
9, 023. 53
958, 476. 78 2, 081, 734. 44 1,172, 858.15
773, 272. 32
365, 006. 43
101, 257. 61
325, 138. 58
476, 583. 82
276, 087. 26 .
69, 185. 74
200, 829. 89
641, 252. 28
254, 537. 32
89, 859.96190, 531. 88
400, 980.97
300,971. 08
32, 407. 84
1, 353. 62
116, 080.10
968, 232.14
429, 319. 59
161, 706.49
483. 26
2, 726. 51
358,221.43 10,566,658.03 20,996, 209. 01 111, 458,976.

3, 512, 308. 02

Fiscal y e a r
J u l y I, 1922
to J u n e 30,
1923

Fiscal y e a r
J u l y 1, 1921
to J u n e 30,
1922

$401, 286. 50
1, 830,459.16
488,019.97
362, 812. 65
214, 288. 01
110, 233. 06
50, 591. 26
562, 095.11
164, 001. 86
139, 095. 64
130, 720. 93
130, 620.90
251, 654. 79

$522, 344.91
$437, 680. 57 $497,169. 20 $6,136, 211. 68
2, 513,569. 67 1, 375, 835. 24 915, 859.15 28, 634,027. 08
5, 234,785.14
293, 249.18
519,107.16
492, 945. 69
077. 63
373, 318. 34
401, 604. 61 5, 501,
548, 520. 22
125, 633. 42
165, 464. 77 2, 013,160.1&
158, 870.90
64,121. 22
57, 678. 49 1, 039,592. 68
65, 019. 63
664, 544.97
113, 253.99
34, 628. 00
80, 731. 27
463.38
395, 571. 32
769, 050. 62
529, 280. 74 6, 725,
2, 250,760. 26
188, 757. 27
202, 594. 21
130,731.98
630. 78
108,118. 41138, 248. 51
102, 481. 51 1, 500,
897.18
62, 319. 68
133, 263. 75
54, 411. 38 1, 546,
1, 307,
380. 41
104, 520. 72
120, 791.19
99, 653.99
329, 493.14
258, 071. 05
309,450. 64 3, 057,137. 61

Fiscal year
J u l y 1, 1923
to J u n e 30,
1924

Fiscal y e a r
J u l y 1, 1924
to J u n e 30,
1925

Total

3,
4, 836, 879. 74 18. 7,95 , 895 5 3,961, 872. 50 863, 624. 89 65, 511,668.86

EXHIBIT 78
[ D e p a r t m e n t Circular N o . 356.

Chief Clerk]

€ H I E F CLERK, TREASURY DEPARTMENT, DESIGNATED TO H A N DLE CLASSIFICATION AND E F F I C I E N C Y M A T T E R S
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,

Washington, May 9, 1925.
To Heads of Bureaus and Ofiices, and Chiefs of Divisions, Secretary's
Ofiice, Treasury Department.
^
Department Circular 324 amended January 29, 1924, and Department Circular 324 amended' and supplemented December 30, 1924,
establishing a Treasurer Department Personnel Classification Board,
pursuant to the provisions of Section 4 of the Act of Congress approved March 4, 1923, known as the Classification Act, are hereby
:revoked, and the duties of the Board terminated effective this date.
In lieu of the foregoing, Mr. F . A. Birgfeld, Chief Clerk of the
-Department, is hereby designated to represent the Secretary in all



SECEETARY OF THE TREASURY

325

matters concerning the operation of the Classification Act. I t shall
be the duty of this official to efl^ect a more uniform procedure within
the activities of the Department in connection with the handhng of
classification and efficiency rating matters, and to represent the
Department on all problems coming before the Personnel Classification Board. His instructions and decisions will be considered final,
subject to the direction of the Under Secretary when such higher
authority is necessary.
I n order to facilitate. this work, you are directed to designate an
employee to handle classification and efficiency rating problems in
your respective activities, who shall act as liaison officer in maintaining a contact with the Department and serve on an advisory
committee to the official representing the Department.
A. W.

MELLON,

Secretary of the Treasury.
Ex:EnBiT 79
[Department Circular No. 244.1 Chief Clerk]

SUPERVISION OF BUREAUS AND OFFICES' OF THE TREASURY
DEPARTMENT AND DIVISIONS OF THE OFFICE OF THE SECRETARY OF THE TREASURY BY THE UNDERSECRETARY OF
THE TREASURY AND THE ASSISTANT SECRETARIES OF THE
TREASURY
A

TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,

Washington, April 1, 1925.
1. The following assignments of bureaus arid offices of the Treasury
Department and divisions of the Secretary's office are hereby orderedf,
effective April 1, 1925:
The Undersecretary of the Treasury:
1. The Finances.
2. Commissioner of Accounts and Deposits.
(a) Division of Bookkeeping and Warrants.
(6) Division of Deposits.
3. Foreign Loans.
4. Advances and Loans to Railroads under the Transportation
Act, 1920.
5. Federal Farm Loan Bureau.
6. Section of Statistics.
7. Government Actuary.
Assistant Secretary in Charge of Fiscal Offices:
8. Treasurer of the United States.
9. Comptroller of the Currency.
10. Commissioner of the Public Debt.
(a) Division of Loans and Currency.
(6) Register of the Treasury.
(c) Division of Public Debt Accounts and Audit.
{d) Division of Paper Custody.
11. Bureau of Engraving and Printing.
12. Mint Bureau.
13. Secret Service Division.
14. Disbursing Clerk.
15. Section of Surety Bonds of the Division of Appointments.
1 This circular supersedes Treasury Department Circular No. 244, dated June 21,1923.




326

REPORT ON T H E FINANCES

Assistant Secretary in Charge of Internal Revenue and MisceUaneous:
1. Chief Clerk.
(a) Division of Mail and Files.
2. Bureau of Supply.
(a) General Supply Committee.
3. Division of Appointments.
4. Division of Printing.
5. Bureau of Internal Revenue.
6. Bureau of the Public Health Service.
7. Supervising Architect's Office.
Assistant Secretary in Charge of Customs, Coast Guard, and Prohibition:
1. Customs Service.
2. Coast Guard.
3. Prohibition Unit(a) Narcotics Section.
2. The Undersecretary is authorized to act, for and by direction
of the Secretary of the Treasury, in any branch of the Department,
and represents the Secretary in dealings with the Federal Reserve
Board, the War Finance Corporation, and the Farm Loan Board.
3. The Assistant Secretary in Charge of Fiscal Offices will act
under the intermediate supervision of the Undersecretary.
4. The Chief Clerk of the department, in performing his duties as
outlined in Department Circular No. 59, dated October 1, 1910, will
act under the direction of the Secretary, the Undersecretary, and
the Assistant Secretaries, in their respective jurisdictions. In general
administrative matters or matters relating to the Chief Clerk's
office—such as the personnel of that office, etc.—the Chief Clerk
will report to the Secretary through the Assistant Secretary in Charge
of Internal Revenue and Miscellaneous.
5. The Chief of the Division of Appointments will perform his
duties under the direction of the Secretary, the Undersecretary, and
the Assistant Secretaries, in their respective jurisdictions.' In general
administrative matters or matters relating to the office of the Division
of Appointments—such as the personnel of that office, etc.—the
Chiei of the Division of Appointments wiU report to the Secretary
through the Assistant Secretary in Charge of Internal Revenue and
Miscellaneous.
6. In the absence of the Secretary, the Undersecretary will act as
Secretary of the Treasury. In the absence of both the Secretary and
the Undersecretary, the Fiscal Assistant Secretary will act as Secretary. In the absence of the Secretary, the Undersecretary, and the
Fiscal Assistant Secretary, the senior of the remaining two Assistant
Secretaries present will act as Secretary.
7. The Bureau of the Budget of the Treasury operates under the
immediate direction of the President.
8. This circular supersedes Treasury Department Circular No.
244, dated June 21, 1923.




A. W.

MELLON,

Secretary of the Treasury.

EXHIBIT

80

NUMBER O t EMPLOYEES IN THE DEPARTMENTAL SERVICE OF THE TREASURY IN W A S H I K T G I ' O N , Bt^ MON'TH^,
FROM JUNE 30, 1924, TO SEPTEMBER 30, 1925
B u r e a u or oflSce

Secretary's office
_.'Chief clerk's office
Division of A p p o i n t m e n t s
__.
Division of B o o k k e e p i n g a n d W a r r a n t s . _ . .
Division of C u s t o m s
D i v i s i o n of D e p o s i t s . . .
...-_
Division of L o a n s a n d C u r r e n c y
_.
Division of M a i l a n d Files
D i v i s i o n of P r i n t i n g a n d S t a t i o n e r y . _
Savings Division
-.
Secret Service Division
B o n d roll ( m i s c e l l a n e o u s ) . . .
U n i t e d States Coast G u a r d
C o m p t r o l l e r of t h e C u r r e n c y
D i s b u r s i n g clerk's office
B u r e a u of E n g r a v i n g a n d P r i n t i n g
Federal F a r m Loan Bureau
M i n t Bureau
_
,...
Internal Revenue Bureau
Public Health Bureau
Office of t h e Register of t h e T r e a s u r y
Supervising A r c h i t e c t ' s office.
Office of t h e T r e a s u r e r of t h e U n i t e d S t a t e s .
B u r e a u of t h e B u d g e t . _ _
Office of t h e Commissioner of A c c o u n t s a n d
Deposits
_
Office of t h e C o m m i s s i o n e r of P u b l i c D e b t
D i v i s i o n of P u b l i c D e b t , A c c o u n t s a n d A u d i t
P u b l i c d e b t (miscellaneous)
General S u p p l y C o m m i t t e e
W o r l d W a r Foreign D e b t C o m m i s s i o n .
Total..

June
30

July
31

Aug.
31

Sept.
30

Oct.
31

Nov.
30

Dec.
31

Jan.
31

Feb.
28

Mar.
31

Apr.
30

May
31

June
30

July
31

24
-637
32
83
55
8
1,348
13
42
13
13
47
107
186
18
5,010
92
14
6,469
261
1,008
211
1,019
40

62
513
35
85
52
8
1,207
13
40
10
13
5
105
185
29
5,108
93
14
6,431
251
765
216
1,028
42

63
614
35
83
51
8
1,184
13
40
8
12
4
106
183
29
5,148
94
14
6,391
249
714
219
1,025
43

62
511
35
82
50
8
1,177
13
38
6
12
4
106
184
29
5,150
95
14
6,627
244
706
215
1,018
42

61
509
35
83
52
8
1,157
13
39
5
11
4
106
182
29
5,129
96
14
6,552
242
694
219
1,013
42

60
509
35
82
52
8
1,164
13
38
3
11
4
105
185
29
5,127
96
14
6,503
243
689
216
1,010
42

60
503
35
82
51
8
1,161
13
38
2
11
4
105
183
29
5,188
96
13
6,503
242
687
216
1,029
42

60
504
35
82
51
8
1,156
13
38
1
11
4"
105
182
29
5,209
96
14
6,500
244
681
216
1,017
41

60
501
34
82
49
8
1,154
13
39
1
11
4
111
181
29
5,063
96
14
6,499
242
678
217
1,020
41

60
502
34
81
54
8
1,150
13
39
1
11
4
115
180
28
5,050
95
14
6,438
241
677
218
982
41

60
501
34
82
55
8
1,147
13
39
1
11
4
116
178
28
5,017
98
14
6,371
239
673
216
953
41

60
495
33
82
54
8
1,143
12
38
1
10
4
121
178
27
4,994
96
13
6,158
238
669
215
949
41

60
487
33
81
54
8
1,134
12
38
1
11
4
123
176
28
4,997
96
14
6,022
237
669
221
944
40

.

6
25
133
68
137

6
25
133
67
103

25
131

25
132

106

100

6
25
130
68
97
1

23
129
71
96
1

6
23
129
71
87
2

6
23
].28
72
88
1

6
22
128
72
103
1

22
127
72
104
1

6
22
127
71
103
1

6
22
126
71
100
1

17,119 16,644

16,566 16,761 16,622

Increase

Aug.
31

Sept.
30

61
491
33
81
52
7
1,126
13
37

60
492
33
79
52
7
,089
13
38

60
497
.33
79
52
7
1,023
13
38

11
4
128
173
29
5,148
97
14
5,931
236
669
220
932
41

11
4
123
171
29
5,180
100
14
5,820
232
664
218
926
41

11
4
130
174
29
5,205
99
14
5,690
229
664
222
930
41

7
21
139
45
78
1

7
22
139
44
78
1

7
23
140
43
77
1

+1
-2
+7
-25
-60
+1

16,619 16,615 16,464 16,368 16,231 15,969 15,816 15,825 15,687

15,535

- 1 , 584

22
128
72

+36
-140
+1
-4
-3
-1
-325
-4
-13
-2
-43
4-23
-12
+11
+195
+7
-779
-32
-344
+11
-89
+1

Ul
O

o
W

>
d

N O T E . — T h e figures in t h i s exhibit show a c t u a l n u m b e r of n a m e s a p p e a r i n g on p a y rolls for t h e p a y period covering t h e last half of each m o n t h .




CO

to

-a

328

' BEPOBT ON TI-TE FINANCES
EXHIBIT

81

[Department Circular No. 154, revised.'

Chief Clerk]

A C C E P T A N C E O F U N I T E D S T A T E S B O N D S A N D N O T E S AS S E C U R I T Y
IN LIEU OF S U R E T Y OR SURETIES ON PENAL B O N D S
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,

Washington, August SO, 1924.
To Bond-Approving Ofiicers, the Treasurer of the United States, Federal
Reserve Banks, and Others Concerned:
Treasury Department Circular No. 154, dated May 15, 1922, is
hereby amended and supplemented so as to read as follows:
The following rules and regulations are prescribed for carrying into
effect Section 1029 of the Revenue Act of 1924, approved June 2,
1924, which provides as follows:
S E C . 1029. Wherever by t h e laws of t h e United States or regulations m a d e
p u r s u a n t thereto, any person is required to furnish any recognizance, stipulation,
bond, g u a r a n t y , or undertaking, hereinafter called ''penal bond,'' with surety
or sureties, such person m a y , in lieu of such surety or sureties, deposit as security
with the official having a u t h o r i t y to approve such penal bond, United States
Liberty bonds or other bonds or notes of t h e United States in a sum equal a t
their p a r value to t h e a m o u n t of such penal bond required to be furnished,
together with an agreement authorizing such oiScial to collect or sell such bonds
or notes so deposited in case of any default in t h e performance of any of t h e conditions or stipulations of such penal bond. The acceptance of such United States
bonds or notes in lieu of surety or sureties reciuired by law shall have t h e same
force and effect as individual or corporate sureties, or certified checks, bank
drafts, post-office money orders, or cash, for the penalty or a m o u n t of such penal
bond. T h e bonds or notes deposited hereunder a n d such other United States
bonds or notes as m a y be substituted therefor from t i m e to time as such security,
m a y be deposited with t h e Treasurer of t h e United States, a Federal reserve
bank, or othei* depositary duly designated for t h a t purpose by t h e Secretary,
which shall issue receipt therefor, describing such bonds or notes so deposited.
As soon as security for t h e performance of such penal bond is no longer necessary,
such bonds or notes so deposited shall be returned t o t h e depositor: Provided,
T h a t in case a person or persons supplying a contractor with labor or material
as provided by t h e Act of Congress, approved February 24, 1905 (33 Stat. 811),
entitled ' ' A n Act to amend an Act approved August thirteenth, eighteen hundred
and ninety-four, entitled ' An Act for t h e protection of persons furnishing materials
and labor for t h e construction of public w o r k s , ' " shall file with t h e obligee, a t
any time after a default in t h e performance of any contract subject to said Acts,
t h e application and affidavit therein provided, t h e obligee shall not deliver t o
t h e obligor t h e deposited bonds or notes nor any surplus proceeds thereof until
t h e expiration of t h e time limited by said Acts for t h e institution of suit by such
person or persons, and, in case suit shall be instituted within such time, shall hold
said bonds or notes or proceeds subject to t h e order of t h e court having jurisdiction thereof: Provided further, T h a t nothing herein contained shall affect or
impair t h e priority of t h e claim of t h e United States against t h e bonds or notes
deposited or any right or remedy granted by said Acts or by this section t o t h e
United States for default upon any obligation of said penal bond: Provided
further. T h a t all laws inconsistent with this section are hereby so modified as t o
conform to t h e provisions hereof: And provided further, T h a t nothing contained
herein shall affect the authority of courts over t h e security, where such bonds
are t a k e n as security in judicial proceedings, or t h e a u t h o r i t y of a n y administ r a t i v e officer of t h e United States to receive United States bonds for security
in cases authorized by existing laws. T h e Secretary m a y prescribe rules a n d
regulations necessary and proper for carrying this section into effect.
'Superseding Treasury Department Circular No. 154, dated May" 15, 1922.




SECRETARY OF T H E TREASURY

329

I. BOND-APPROVING OFFICERS

The term '^bond-approving officers^' as used in this circular means
the head of an Executive Department or Government Establishment
or an officer designated either by law or regulation to approve ^ penal
^
bonds.'' The Treasury of the United States assumes no responsibility or liability on account of the acts of bond-approving ojBEicers.
The term ^^bond-approving officer'' shall be deemed to include the
officer's successors in oflB.ce.
II. ACCEPTANCE OF BONDS AND NOTES BY BOND-APPROVING OFFICERS

2. Any individual, partnership, or corporation required by the laws
of the United States or .regulations made pursuant thereto to furnish
any recognizance, stipulation, bond, guaranty, or undertaking (hereinafter called penal bond), with surety or sureties, may,Jn lieu of such
surety or sureties, deposit as security with the offfcial having authority
to approve such penal bond (hereinafter called the bond-approving
officer), United States Liberty bonds, Treasury notes, or other United
States bonds or notes in a sum equal at their par value to the amount
of the penal bond required to be furnished, together with a power of
attorney and agreement in the form hereinafter prescribed, authorizing the bond-approving officer to collect or sell such bonds or notes
so deposited in case of any default in the performance of any of the
conditions or stipulations of such penal bond. The acceptance of
such United States bonds or notes in lieu of surety or sureties required
by law shall have the same force and effect as individual or corporate,
sureties, or certified checks, bank drafts, post-oflSice money orders, or
cash, for the penalty or amount of such penal bond. Treasury certificates of indebtedness are not acceptable under said Section 1029 of
the Revenue Act of 1924 as security in lieu of surety or sureties.
3. The individual, partnership, or corporation required to furnish
any penal bond, who deposits United States bonds or notes as security
in lieu of surety or sureties in accordance with the provisions of this
circular, must be the owner of the bonds or notes deposited, and is
hereinafter called the obligor. United States bonds or notes may be
deposited with bond-approving officers pursuant to the provisions of
this circular in either coupon or registered form. Coupon bonds or
notes shall have attached thereto all coupons unmatured at the date
of such deposit, and all matured coupons should be detached. Registered bonds or notes must be registered in the name of the obligor, and
duly assigned, at or before the date of such deposit, either to the bondapproving ofiicer with whom they are deposited or his administrative
superior, or in blank, in accordance with the regulations of the Treasury
Department in relation to United States bonds. (See Treasury Department Circular No. 300, dated July 31, 1923.)
4. The United States bonds or notes to be deposited must in every
case be delivered to the bond-approving ofiicer at the obligor's risk
and expense. Coupon bonds or notes and registered bonds or notes
assigned in blank or for exchange for coupon bonds or notes can not
safely be forwarded by registered mail unless insured by the obligor
against risk of loss in transit. Registered bonds or notes, unless
assigned in blank or for exchange for coupon bonds or notes, need not
be so insured when forwarded by registered mail, unless the obligor
so elects. The bond-approving officer shall issue a receipt in duplicate,
60501—FI 1925t



22

330

REPORT ON T H E FINANCES

substantially in Form A, hereto attached, for the United States bonds
or notes so deposited, the original of the receipt to be given to the
obligor and the duplicate to be retained by the bond-approving oflScer
for his files.
5. At the time of the deposit of any United States bonds or notes
with a bond-approving ofl&cer in accordance with the provisions of
this circular, the obligor shall deliver to the bond-approving officer
a duly executed power of attorney and agreement, in favor of the
bond-approving oflficer, authorizing such officer to collect or sell such
bonds or notes so deposited in case of any default in the performance of
any of the conditions or stipulations of the penal bond, and 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. The power of attorne}^ and agreement shall be, in the
case of an individual, substantially in Form C, hereto attached; in the
case of a partnership, substantially in Form D, hereto attached; and
in the case of a corporation, substantially in Form E, hereto attached.
6. In connection with the acceptance of United States bonds or
notes hereunder as security in lieu of surety or sureties, bond-approving oflicers must satisfy themselves as to the ownership of the bonds
or notes deposited and the sufficiency of the power of attorney and
agreement, and in the case of registered^ bonds or notes, as to the
regularity of the assignments as well, and, in general, that the deposit
is made in conformity with the provisions of this circular.
7. Any obligor who deposits United States bonds or notes.in
accordance with the provisions of this circular may, upon written
application to and with the approval of the bond-approving officer,
3 substitute for the bonds or notes so deposited (a) other United States
bonds or notes in a sum equal at their par value to not less than the
par amount of the United States bonds or notes to be withdrawn,
upon compliance with all the provisions of this circular applicable
t o an original deposit of United States bonds or notes in lieu of
surety or sureties, or (6) a penal bond with surety or sureties or
such other security as may be allowed by law. The bonds or notes
withdrawn shall be returned in the manner hereinafter provided for
the return of bonds and notes deposited.
m.

DEPOSITS OF BONDS AND NOTES BY BOND-APPROVING
WITH DEPOSITORIES

OFFICERS

8. United States bonds and notes deposited with bond-approving
ofl&cers as security in accordance with the provisions, of this circular,
and such other United States bonds or notes as may be substituted
therefor from time to time as such security, may be deposited by
bond-approving officers with the Treasurer of the United States, a
Federal Keserve Bank or any branch Federal Reserve Bank having
the requisite facilities, or other depository duly designated for t h a t
purpose by the Secretary of the Treasury; provided, however, t h a t
bond-approving officers shall deposit with the Treasurer of the United
States all United States bonds and notes received by them in the
District of Columbia pursuant to the provisions of this circular.
Depositaries of public moneys are not authorized to act as depositories
for United States bonds or notes accepted under this circular, unless
specifically designated for that purpose by the Secretary of tho




SECRETARY OF THE TREASURY

331

Treasury. Any authorized depository receiving deposits of United
States bonds or notes from bond-approving officers in accordance
with this circular shall give receipt therefor in duplicate, describing
the bonds or notes so deposited, substantially in Form B, hereto
attached, the original to be delivered to the bond-approving officer
and the duplicate to be retained by the depository for its own files.
The bond-approving officer will hold the original receipt subject to
the instructions of his administrative superior. United States
bonds or notes so deposited with an authorized depository may be
withdrawn only by or on the writteiQ order of the bond-approving
^officer.
9. United States bonds and notes accepted by bond-approving
officers from obligors under this circular, and not deposited by them
with authorized depositories, will be held at the risk of the respective
bond-approving officers, subject to such regulations and instructions
as may be prescribed for their guidance by their respective administrative superiors. Coupon bonds or notes and registered bonds or
notes assigned in blank or for exchange for coupon bonds or notes
are in effect bearer obligations and must be kept in safe custody at
peril; registered bonds or notes not assigned in blank or for exchange
for coupon bonds or notes must also be kept in safe custody, but in the
event of loss or destruction may be replaced upon compliance with the
provisions of law and the regulations of the Treasury Department
applicable thereto.
10. Bond-approving officers desiring to deposit United States
bonds or notes received by them with authorized depositories must
deliver such bonds or notes to the depository, without risk or expense
to the depository. Coupon bonds or notes and registered bonds or
notes assigned in.blank or for exchange for coupon bonds or notes
can not safely be shipped by registered mail unless covered by
insurance. Registered bonds or notes not assigned in blank or for
exchange for coupon bonds or notes may be forwarded by registered
mail uninsured.
IV. RETURN OR OTHER DISPOSITION OF BONDS AND NOTES DEPOSITED

11. The obligor shall be entitled to receive the interest accruing
upon United States bonds or notes deposited in accordance with
this circular, in the absence of any default in the performance of
any of the conditions or stipulations of the penal bond. The interest on
any registered bonds or notes which the obligor is entitled to receive hereunder will be paid by check in regular course to the registered holder.
The coupons for any interest on coupon bonds or notes which the
obligor is entitled to receive hereunder will, upon written application
from the obligor to the bond-approving officer, be detached, as they
mature, from the bonds or notes deposited and. forwarded to the
obligor at the obligor's risk and expense, either by the bond-approving
officer or upon his written order by the depository with which the
bonds or notes may be deposited, or, at the direction of the bondapproving officer, collected by the depository and check therefor
forwarded to the obligor. In the absence of written application
therefor by the obligor, coupons for interest on coupon bonds or
notes to which the obligor may be entitled hereunder shall remain




332

REPORT ON T H E FINANCES

attached to the bonds or notes deposited, subject to the provisions
of this circular.
12.; As soon as security for the performance of the penal bond is
no longer necessary, the United States bonds or notes deposited in
lieu of surety or sureties on such penal bond, together with the power
of attorney and agreement accompanying such bonds or notes, shall
be returned to the obligor by the bond-approving officer, without
application therefor from the obligor. The determination of the
question whether security is any longer necessary for the performance of the penal bond shall rest with the bond-approving officer and
such other officers as shall have jurisdiction in the premises under the
provisions of law and admiDistrative regulations which may be
applicable; provided, however, that in case a person or persons
supplying labor or material as provided by the Act of Congress,
approved February 24, 1905 (33 Stat. 811), entitled '^An Act to
amend an Act approved August 13, 1894, entitled ^An Act for the
protection of persons furnishing materials and labor for the construction of public works,'" s h ^ l file with the obligee, at any time
after a default in the performance of any contract subject to said
Acts, the application and affidavit therein provided, neither the
obligee nor the bond-approving officer shall deliver to the obligor
the deposited bonds or notes or any surplus proceeds thereof until
the expiration of the time limited by said Acts for the institution of
suit by such, person or persons (viz., one year from the date of final
settlement of the contract for the performance of which the bonds
or notes were pledged), and, in case suit shall be instituted within
such time, shall hold said bonds or notes or proceeds subject to the
order of the court having jurisdiction thereof; provided, further,
t h a t nothing herein contained shall affect or impair the priority of
the claim oi the United States against the bonds or notes deposited
or any right or remedy granted by said Acts or under this circular
to the United States lor default upon any obligation of said penal
bond.
13. Bonds or notes to be returned to the obligor will be forwarded
at the obligor's risk and expense, either by the bond-approving
officer, or upon his written order by the depository with which the
bonds or notes may be deposited, and unless delivered direct to the
obligor, will be forwarded, in the absence of other written instructions and remittance to cover expenses, by express, collect, except
that registered bonds or notes assigned in blank or for exchange for
coupon bonds or notes may be forwarded by registered mail, uninsured. Registered bonds or notes assigned to the bond-approving
officer or his administrative superior shall be reassigned to the
obligor before their return.
14. Any obligor who desires to withdraw a portion only of the
bonds or notes deposited, by reason of reduction in liability under the
penal bond, shall make written application for such withdrawal to
the bond-approving officer, who shall, if he approve such application,
return such portion of the ^bonds or notes to the obligor.
15. Upon the complete or partial return to the obligor of bonds or
notes deposited as security under the provisions of this circular, the
bond-approving officer shall require from the obligor a receipt in
duplicate, substantially in Form G, hereto attached, and shall further
require the obligor, in case of complete return, to surrender the original
receipt on Form A.



SECRETARY OF T H E TREASURY

333

V. FORM OF PENAL BONDS WITH UNITED STATES BONDS OR NOTES AS
- SECURITY

16. Penal bonds on which United States bonds or notes are accepted
as security in lieu of surety or sureties may be substantially in,Form F,
hereto attached. Administrative offices of the Government may,
however, use other forms of penal bonds appropriate to the work of
their respective offices, provided that upon the execution of the penal
bond the principal shall indorse on the face thereof and sign the
following statement:
T h e United States bonds/notes described in t h e annexed schedule are hereby
pledged as security for t h e performance and fulfillment of t h e foregoing undertaking in accordance with Section 1029 of t h e Revenue Act of 1924, approved
J u n e 2, 1924, and Treasury D e p a r t m e n t Circular No. 154, dated August 30, 1924.
Principal on the above bond.

17. Nothing contained in this circular shall be construed as modifying the existing practice or duties of administrative offices in handling
penal bonds, except to the extent made necessary under the terms of
this circular, by reason of the acceptance of United States bonds or
notes,as security in lieu of surety or sureties thereon.
VI. SPECIAL PROVISIONS

18. General Supply Committee.—^United States bonds and notes
deposited to guarantee proposals or bids submitted to the General
Supply Committee, or as security for the performance or fulfillment of
contracts made through said committee, shall either be delivered in
person or forwarded by registered mail at the obligor's risk and
expense to the Chief Clerk of the Treasury Department, who shall
deposit said bonds or notes with the Treasurer of the United States
against receipts therefor which shall be made in quadruplicate; one
copy to be retained by the Treasurer, the original and the other two
copies to be delivered to the Chief Clerk of the Treasury Department,
who shall retain the original, give one copy to the obligor, and transmit one copy to the Directo?; of Supply, Treasury Department,
Washington. Bonds or notes thus deposited may be withdrawn only
by or on the written order of the Director of Supply, countersigned
by the Chief Clerk of the Treasury Department, and the surrender
of the original and duplicate recemt. In no instance should United
States bonds or notes be f orwardea to the General Supply Committee
with the proposal or contract forms. Coupon bonds or notes and
registered bonds or notes assigned in blank or for exchange for coupon
bonds or notes forwarded by registered mail should be insured by the
obligor against risk of loss in transit. Registered bonds or notes not
assigned in blank or for exchange for coupon bonds or notes need not
be insured against loss in transit, unless the obligor so elects. The
regulatibns prescribed in sections 2, 4, and 11 of this circular with
respect to the assignment of registered bonds or notes, the power of
attorney and agreement- to accompany the bonds or notes, the substitution of other bonds or notes, and the return of bonds or notes to
the obligors, shall apply to all United States bonds or notes accepted
by the General Supply Committee as guarantees on proposals or as
security for the performance of contracts made by such committee.
Bonds or notes tendered by unsuccessful bidders will be returned
promptly.



334

REPORT ON T H E

FINANCES

l^. Collectors of customs.—The acceptance by collectors of customs
of United States bonds or notes in lieu of surety or sureties on penal
bonds shall be governed by the general rules and regulations contained in this circular, except as modified with the approval of the
Secretary of the Treasury to cover special cases.
, 20. Collectors of internal revenue.—Special instructions for the
guidance of collectors of internal revenue in accepting United States
bonds or notes in lieu of surety or sureties on penal bonds will be
issued through the office of the Commissioner of Internal Revenue,
upon the approval of the Secretary of the Treasury.
, 21. Other departments and establishments.—Bond-approving officers
of other Departments and establishments of the Government accepting Liberty bonds. Treasury notes, or other United States bonds or
notes in lieu of surety or sureties under the provisions of Section 1029
of the Revenue Act of 1924, shall be governed by the provisions of
this circular. This circular may be modified or amended only upon
the approval of the Secretary of the Treasury.
vn.

OTHER

DETAILS

22. Nothing contained in this circular shall affect the authority
of courts over the security when United States bonds or notes are
taken as security in judicial proceedings, or the authority of any
administrative officer of the United States to receive United States
bonds or notes for security in cases authorized by provisions of. law
other than Section 1029 of the Revenue Act of 1924, approved
June 2, 1924.
23. The Secretary of the Treasury may withdraw or amend at
any time or from time to time any or all of the foregoing rules and
regulations, subject, however, to the provisions of Section 1029 of
the Revenue Act of 1924, approved June 2, 1924.
A. W.

MELLON,

Secretary of the Treasury.
FORM A
REtJEIPT OF BOND-APPROVING OFFICER FOR UNITED STATES BONDS OR NOTES
ACCEPTED AS SECURITY
(City)

(State)

(Date)

The undersigned hereby acknowledges receipt of the United States bonds/
notes hereinafter described, deposited as security in lieu of surety or sureties on
.__
, filed with
,
(Description of penal bond)

through

.

(Bureau or oflQce)

are registered in the name of
to

(Department or establishment)

for

i

(Description of obligation secured)

Said bonds/notes ^

, and are assigned

(State form of assignment)
•"-••-.Ie of bonds/notes

Coupon or
registered

Total face
amount

Denomination Serial number

* This information to be furnished only in case of registered bonds/notes.




Interest dates

335

SECBETABY OF THE TBEASTJBY

. This" receipt is executed in duplicate, and the original must be surrendered by
the obligor before the above-described bonds or notes deposited are returned to
him. This receipt is not assignable.
(Signature and official title of Bond-Approving Officer.)

FORM B
R E C E I P T OF DEPOSITORY FOR UNITED STATES BONDS OR NOTES DEPOSITED BY
BOND-APPROVING OFFICER

(City)

(State)

(Date)

The undersigned hereby acknowledges receipt from
(Name and pflScial title of bond-approving officer)

of the United States bonds/notes hereinafter described, deposited by
, a s security in lieu of surety or sureties on
(Name of obligor)

filed with
for
of

.

,

. (Description of penal bond)

, through

.

(Department or establishment)

(Bureau or office)

Said bonds/notes ^ are registered in the name

(Description of obligation secured)

, and are assigned to

:
(State form of assignment)

Title of bonds/notes

Coupon or
registered

Total face
amount

Denomination

Serial number

Interest dates

The above-described bonds/notes will be returned only to or on the written
order of said bond-approving officer or his successor in office, upon presentation
and surrender of the original of this receipt. This receipt is executed in duplicate
and in not assignable.
(Signature of Depository.)

FORM C
POWER OF ATTORNEY AND AGREEMENT
(For individual)

Know all men by these presents, that I, the undersigned, of
do hereby constitute and appoint

,
, and

(Name and official title of bond-approving officer)

his successors in office, as my attorney, for me and in my name to collect or to
sell, assign, and transfer certain United States Liberty bonds, Treasury notes,
or other United States bonds or notes, described as follows:
such bonds/notes having been deposited by me, pursuant to authority conferred
by Section 1029 of the Revenue Act of 1924, approved June 2, 1924, and subject
to the provisions thereof and of Treasury Department Circular No. 154, dated
August 30, 1924, as security for the faithful performance of any and all of the conditions or stipulations of a certain obligation entered into by me with the United
States, under date of
, which is hereby made a part hereof,
and I agree that, in case of any default in the performance of any of the conditions
and stipulations of such undertaking, my said attorney shall have full power to
collect sa;id bonds/notes or any part thereof, or to sell, assign, and transfer said
bonds/notes or any part thereof, without notice, at public or private sale, free
> This information to be furnished only in case of registered bonds/notes.




336

BEPOKT ON THE FINANCES •

from any equity of redemption and without appraisement or .valuation,' notice
and right to redeem being waived, and 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 my said attorney may deem best.
And I hereby for myself, my heirs, executors, administrators, and assigns,
ratify and confirm whatever my said attorney shall do by virtue of these presents.
In witness whereof, I have hereunto set my hand and seal this _^
day
of
, 19
[SEAL.]

Before me, the undersigned, a notary public within and for the county of
, in the State of
1
(or the District
of Columbia), personally appeared the above-named
^
and acknowledged the execution of the foregoing power of attorney.
Witness my hand and notarial seal this
day of
,
19---[Notarial seal.]
Notary PublicFORM D
P O W E R O F ATTORNEY AND AGREEMENT
[For Partnership]

Know all men by these presjents, that we, the undersigned, carrying on business in partnership together under the firm name and style of
,
of
; do, and each of us does, hereby constitute and appoint
'.
, and his successors in office, as
(Name and official title of bond-approving officer)

the attorney of us and each of us, and of our said firm of
, in
the name or names and on behalf of us and our said firm, to collect, or to sell,
assign, and transfer certain United States Liberty bonds, Treasury notes, or
^ other United States bonds or notes, described as follows:
such bonds/notes having been deposited by us, pursuant to authority conferred
by Section 1029 of the Revenue Act of 1924, approved June 2, 1924, and subject
.to. the provisions thereof and of Treasury Department Circular No. 154, dated
August 30, 1924, as security for the faithful performance of any and all of the
conditions or stipulations of a certain obligation entered into by us with the
United States, under date of
, which is hereby made
a part hereof, and we agree that, in case of any default in the performance of
any of the conditions and stipulations of such undertaking, our said attorney
shall have full power to collect said bonds/notes or any part thereof, or to sell,
assign, and transfer said bonds/notes or any part thereof without notice, at
public or private sale, free from any equity of redemption and without appraisement or valuation, notice and right to redeem being waived, and 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 our said
attorney may deem best. $
And we hereby for ourselves, our heirs, executors, administrators, and assigns,
ratify and confirm whatever our said attorney shall do by virtue of these presents.
In witness whereof, we have hereunto set our hands and seals this
day of 1
, 19
[SEAL.]
[SEAL.]

Before me, the undersigned, a notary public within and for the county of
, in the State of
(or the District
of Columbia), personally appeared the above-named
,
partners doing business under the firm name and style of
,
and- acknowledged the execution of the foregoing power of attorney.
Witness my hand and notarial seal this
day of
___,
19___.
. [Notarial seal.]
Notary Public.




SEORETARy OF THE TREASURY
FORM

337

E

POWER OF ATTORNEY AND AGREEMENT
o

[For corporation]

Know all men by these presents, that
__, a corporation duly incorporated under the laws of the State of
,
and having its principal office in the city of
State of
, in pursuance of a resolution of the board of directors
of said corporation, passed on the
day of
_ ,
.
19
_, a duly certified copy of which resolution is her'eto attached, does hereby
constitute and appoint
, and his suc(Name and official title of bond-approving officer)

cessors in office, as attorney for said corporation, for and in th*e name pf said corr
poration to,collect or to sell, assign, and transfer certain United States Liberty
bonds. Treasury notes, or other United States bonds or notes, described as
follows :

.
•

:
. ^

_

,

:

:

_.
,

such bonds/notes having been deposited by it, pursuant to authority conferred
by Section 1029 of the Revenue.Act of 1924, approved June 2, 1924, and subject
to the provisions thereof and of Treasury Department Circular No. 154, dated
August 30, 1924, as security for the faithful performa;nc'e of any and all of the
conditions or stipulations of a certain obligation entered into by it with the
United States, under date of
__, which is hereby made a
part hereof, and the undersigned agrees that, in.case of any default in the performance of any of the conditions and stipulations of such undertaking,- its said
attorney shall have full power to collect said bonds/notes or any part thereof,
or to sell, assign, and transfer said iDOnds/notes or any part thereof without
notice, at public or private sale, free from any equity of redemption and without
appraisement or valuation, notice and right to redeem being waived, and 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 its said attorney may deem best.
And said corporation hereby for itself, its successors and assigns, ratifies and
confirms whatever its said attorney shall do by virtue of these presents.
.•, ;
In witness whereof, the
-.^^
^___^_
, the corporation hereinabove named,: by
, duly authorized to act in the
(Name and title of officer)

premises, has executed this instrument and caused the seal of the corporation to
be hereto affixed this
day of
_^_, 19____..
[Corporate seal.]
^__^
By ______
Before me, the undersigned,. a notary public within and for the county of
___, in the State of
(or the District
of Columbia), personally appeared
and for and in
(Name and title of officer)

behalf of said
i.
__, corporation, acknowledged the execution
of the foregoing power of attorney.
Witness my hand and notarial seal this
day of
,
19
[Notarial seal.]
..
^-__________Notary Public.
FORM

F

FORM OF P E N A L BOND FOR EXECUTION BY INDIVIDUALS, PARTNERSHIPS, OR CORPORATIONS WHERE UNITED STATES BONDS OR NOTES ARE ACCEPTED AS SECURITY
IN LIEU OF SURETY OR SURETIES

Know all men by these presents, that ____,
, of the city of
, and State of
, as obligor,
held and
firmly bound unto the United States of America, in the penal sum of
-_
dollars ($
), lawful money of the United States, for the
payment of which sum, well and truly to be made to the United States, without
relief from valuation or appraisement laws,
^
bind
,
heirs, executors, administrators, successors, and assigns, firmly by these
presents.




338

REPORT ON T H E

FINANCES

The condition of the above obligation is such that
(Insert conditions and stipulations appropriate to the penal bonds)

The above-bounden obligor, in order the more fully to secure the United
States in the payment of the aforementioned sum, hereby pledges as security
therefor bonds/notes of the United States in the principal sum of
dollars ($
), which said bonds/notes are numbered serially and are
in the denominations and amounts, and are otherwise more particularly described
as follows:
which said bonds/notes have this day been deposited with

^

(Name and official title of bond-approving officer)

and his receipt taken therefor.
Contemporaneously herewith the undersigned has also executed and delivered
a power of attorney and agreement in favor of
,
(Name and official title of bond-approving officer)

, authorizing and empowering said officer as such attorney to collect
or sell the above-described, bonds/notes so deposited, or any part thereof, in
case of any default in the performance of any of the above-named conditions or
stipulations.
In witness whereof, this bond has been signed, sealed, and delivered by the
above-named obligor, this
_
day
_
, 19
•

[SEAL]
[SEAL]

]

Signed, sealed, and delivered in the presence of:

FORM
RECEIPT

BY

OBLIGOR

ON

G

RETURN

OF BONDS

(City)

OR

NOTES

(State)

(Date)

The undersigned hereby acknowledges receipt of the United States bonds/notes
hereinafter described, deposited with
(Name and official title of bond-approving officer)

as security in lieu of surety or sureties on

filed

with

(Description of penal bond)

.

, through

Department or establishment)

,

.

Title of bonds/notes

, for
(Bureau or office)

(Description of obligation secured)

Said bonds/notes 2 are registered in the name of
, and are assigned to-^
Coupons or
registered

Total face
amount

(State form of assignment)
Denomination Serial number Interest dates

This receipt is executed in d uplicate.
(Signature of Obligor.)
* This information to be furnished only in case of registered bonds/notes.




SECRETARY OF THE TREASURY^
EXHIBIT

339

82

[Treasury Decision 3734]

ENROLLMENT OF ATTORNEYS AND AGENTS
TREASURY DEPARTMENT,
OFFICE OF COMMISSIONER OF INTERNAL R E V E N U E ,

'
Washington, D. C.
To the Prohibition Commissioner, Federal Prohibition Administrators,
and Others Concerned:
Effective September 1, 1925, all attorneys and agents appearing in
behalf of any person in any matter whatsoever now pending, or tliat
may hereafter arise, in the Prohibition Unit, or before any branch
ofSce thereof, or before any agent or officer of the prohibition service,
are required to be enrolled and admitted to practice in accordance
with the regulations contained in Department Circular No. 230,
dated August 15, 1923, and amendments thereto; and they shall be
rsubject to all the regulations governing attorneys, agents, and other
persons representing claimants and others bfefore the Treasury
Department and offices thereof.
D. H. BLAIR,

Commissioner of Internal Revenue.
Approved July 29, 1925.
G. B. WINSTON,

Acting Secretary of the Treasury.
EXHIBIT

83

[Circular Letter No. 144. Chief Clerk)

PRINTING AND FORMS COMMITTEE APPOINTED

May 21,.1925.
To Heads of Bureaus and Ojfices, and Chiefs of Divisions, Secretary's
Office, Treasury Department.
Attention is directed to the appointment, effective this date, of a
Printing and Forms Committee.to consist of the following members:
Assistant Secretary in Charge of the Division of Printing, Chairman.
Chief Clerk of the Treasury Department.
Chief, Division of Printing, E x Ofiicio Members.
Mr. D. Masterson, Chief Clerk of the Public Health Service.
Mr. J. L. Nuber, Bureau of Internal Revenue.
The Standing Committee on Blank Forms referred to in circular
letter No. 113 of September 19, 1921, and the inactive printing committee are hereby abolished and their duties and functions will be
taken over by the Printing and. Forms Committee.
The new committee shall pass upon the necessity for the printing
of reports, publications, bulletins, pamphlets, forms, and all other
•classes of printing, together with the matter which shall be contained
therein and the number of copies to be printed, and its decision in
•such matters shall be final, subject only to review b}^^ the Undersecretary or the Secretary of the Treasury.
Requisitions for printing will be submitted as heretofore to the
Chief, Division of Printing.




A. W.

MELLON,

Secretary of the Treasury.

340

REPORT ON A:HE FINANCES
E X H I B I T 84
[Department Circular No. 358. Chief Clerk]

D I S P O S I T I O N O F USELESS PAPERS
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,

Washington, May 16, 1925.
To Heads of Bureaus and Offices, and Chiefs of Divisions, Secretary V
Office, Treasury D'epartment:
Your attention is invited to the provisions of the act approved
February 16, 1889, concerning the disposition of useless executive
papers in the departments, which reads as follows:
Be it enacted'by the Senate and House of Representatives of the United States of
America in Congress ^assembled, That whenever there shall be in any one of t h e
executive departments of the Government an accumulation of files of papers
which are not needed or useful in the transaction of the current business of such
department and have no permanent value or historical interest it shall be the
duty of the head of such department, to submit to Congress a report of t h a t
fact, accompanied by a concise statement of the condition and character of such
papers. And upon the submission of such report it shall be the duty bf t h e
presiding officer, of the Senate to appoint two Senators, and of the Speaker of
•the House of Representatives to appoint two Representatives, and the Senators
and Representatives so appointed shall constitute a joint committee, to which
shall be referred such report, with the accompanying statement of the condition
and character of such papers, and such joint committee shall meet and examine
such report and statement and the papers therein described, and submit to the
Senate and House, respectively, a report of such examination and their recommendation. And if they report that such files of papers, or any part thereof, are
not needed or useful in the transaction of the current business of such department, and have no permanent value or historical interest, then it shall be the
duty of such head of the department to sell as waste paper or otherwise dispose
of such files of papers upon the best obtainable terms, after due publication of
notice inviting proposals therefor, and receive and pay the proceeds thereof inta
the Treasury of the United States and make report thereof to Congress.
Also to the provisions of Executive Order No. 1499, dated March
16, 1912:
' It is hereby ordered that before reporting to. Congress useless files of papers
to be disposed of under the provisions of the act of February 16, 1889, as extended
and amended by section 1, chapter 189, of the act of March 2, 1895, lists of
such papers shall be submitted to the Librarian of Congress in order that the
several executive departments may have the benefit of his views as to the wisdom
of preserving such of the papers as he may deem to be of historical interest.
From the reports submitted by the various bureaus, offices, and
divisions of the department, it appears that no uniform method of
procedure has been followed in carrying into effect the provisions of
the above act. In some instances, especially in activities having field
services, it has been observed that the decision as to what documents
should be retained or .destroyed is left largely to the discretion of the
field offices, notwithstanding the fact that the bureau, office, or
division in Washington is in a better position to direct what classes
of papers on file in these various field offices are of no further value
to the Government.
The benefits to be derived from systematic and periodic surveys of
the files of the department are obvious, in t h a t each activity will
have available at regular intervals an appreciable amount of filing
space and filing equipment for current files. Not only will the
Government receive a regular income from the proceeds of the sale




SECRETARY OF T H E TREASURY

341

•of useless papers but a considerable saving would be effected through
-a reduction in the purchase of new filing equipment and less demand
"for additional floor space. The space situation, both within and
outside the District of Columbia, is such that the retention of useless
files in either rented or Government-owned space becomes an extravagance and should be corrected at once.
I t is thought that a complete survey of the files at this time will
prove extremely beneficial and should begin at once. To accomplish
this, you are requested to designate a committee in your bureau,
office, or division to effect this investigation at the earliest possible
moment. This committee should have permanent status and handle
from time to time all questions relating to the subject of useless papers.
I t is suggested that each bureau, office, and division instruct its
•committee to obtain a sample of each kind of paper or document in
its files, list such samples, and after mature consideration submit to
the head of the activity a tentative recommendation showing which
classes of papers should be recommended for destruction periodically
after a lapse of a specified number of years. When such a list has
been approved, copies should be sent to each official having charge of
-such file papers with the request that the classes of papers noted
thereon as recommended for destruction be incorporated in the annual or semiannual report on the subject to be made by the head of
the activity to the Secretary of the Treasury.
Exception may be taken by the congressional committee or the
Librarian of Congress to certain classes of files contained in the report
submitted to the Congress, and these should be carefully noted by
the respective departmental committees, so that a definite policy
regarding the retention of these papers may be kept on file for the
benefit of the activity involved. I t is particularly desired of activities
having field offices that every effort be made to set up a systematic
method of procedure in the immediate future in order that the next
Teport to the Congress will reflect a more uniform, method in the
recommendations of the department to the Congress than has heretofore been the case.
Another feature in connection with the disposition of useless documents w^hich has not been handled properly by some of the department bureaus and offices is the prompt elimination of such papers as
are authorized for destruction by Congress and the immediate reporting of their disposition to the department. Particularly is this true
of activities having field offices. While such authority is usually
granted in the early part of March of each year, reports of disposition
are often received 8 and 10 months later. This condition should not
exist, and while it is recognized that a certain period of time must
elapsQ before papers to be destroyed can be grouped and sold, it
should be known that reports of disposition are consolidated in one
departmental report and transmitted to the Congress usually at the
beginnirig of each regular session. In the future, when a report of
disposition is delayed more than 90 days a letter of explanation
must accompany the report.




GARRARD B . WINSTON,

Acting Secretary of the Treasury.

342

REPORT ON T H E FINANCES
E X H I B I T 85

LETTER F R O M THE SECRETARY OF THE TREASURY, DATEU
M A R C H 3, 1 9 2 5 , T O T H E P R E S I D E N T O F T H E U N I T E D STATES,
WITH REFERENCE TO A REPORT SUBMITTED TO CONGRESS
B Y THE SPECIAL COMMITTEE O F CONGRESS APPOINTED TO
INVESTIGATE MATTERS RELATING TO GOVERNMENT BONDS
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,

March 3, 1925.
M Y DEAR M R . PRESIDENT:

There has been submitted to Congress a majority report of the Special Committee appointed under House Kesolution 231 (68th Congress,
first session), to investigate matter relating to Government bonds.
One member of the committee. Representative Strong of Kansas^
has filed a minority report, expressing complete disagreement with
the committee's findings. The Chairman of the committee, -Representative McFadden of Pennsylvania, has filed a separate report.
The committee's report, for the most part, is hardly more t h a n
a repetition of charges made by Mr. Charles B. Brewer, a special
assistant to the Attorney General, in a report to the Attorney General, dated January 15, 1924. Mr. Brewer's charges were, in turn,,
substantially a repetition of charges made in 1920 by Mr. J. W.Mc Carter, former Assistant Register of the Treasury under the
Democratic administration. These charges are familiar to you, tomembers of Congress and to the public generally. I shall not repeat
them in this communication. Briefly, they allege that fraud has
existed in connection with Government bonds.
When the charges were made by Mr. McCarter, in 1920, SecretaryHouston thoroughly investigated them and publicly stated in twoletters, dated September 28, 1920, that they were without foundation..
Mr. Mc Carter again presented his charges, in April, 1921, to a.
Member of Congress, by whom they were referred to the Department
of Justice. I t was at this time that Mr. Charles B. Brewer, a special
assistant to the Attorney General, began his activities.
Mr. Brewer devoted nearly three years to an investigation of theMc Carter charges, and during that period made several reports to ther
Department of Justice, which indicated, in substance, that he suspected irregularities but could not prove them. In these interim,
reports he usually included an appeal for more time in which to determine the facts. In October, 1923, after two and a half years h a d
elapsed and Mr. Brewer still claimed his inquiry was incomplete, you.
designated Mr. Charles G. Washburn, an attorney-at-law of Worcester, Massachusetts, as your personal representative to consult
with Mr. Brewer and to ascertain what facts he had developed. The
situation, as disclosed by Mr. Washburn's study of the matter, was
much the same as in preceding years. Mr. Brewer stated" that ho
had not developed all the facts, and that he desired more time to
present his ^^proof." Mr. Washburn advised you of the situation,
and Mr. Brewer was given three additional months in which to complete his investigation. Having already spent two and a half years
on the matter, certainly it was reasonable to suppose that this would
be sufficient to enable him to finish any remaining phases of his work.




SECRETARY OF T H E TREASURY

•

343

Accordingly, it was arranged between Mr. Brewer and Mr. Washburn that, on January 15, 1924, Mr. Brewer should submit his final
report.
Mr. Brewer filed a report with the Attorney General under date of
January 15, 1924. I t contained no evidence which could in any wise
be construed as a justification of the charges. As an investigator of
the Department of Justice, it was Mr. Brewer's duty to ascertain and
determine whether the charges were true or untrue. He did neither.
His report was merely a reiteration of the charges, with embellishments, and with the comment in each instance that further investigation would develop the facts.
Mr. Brewer's report was referred to the Treasury, and in my letter
• to you of April 26, 1924, I answered in detail all his specific charges.
I stated then,, and I repeat here, that there have been no fraudulent
duplications or overissues of the public debt, and that the charges are
absurd. There were. some mechanical and clerical errors in the
preparation and recording of the enormous volume of war-time
securities, and there were some petty thefts of retired securities from
the files. The mechanical and clerical errors did not result in any
loss to the Government, while the thefts of retired securities from the
files have involved a loss to the United States of only $13,100 out of
approximately $100,000,000,000, principal amount of securities
retired by the Register of the Treasury during the period 1917 to
1922. Any fair-minded person will agree that this is a remarkable
record. The wonder is that, considering the frailty of human nature
and the war-time conditions under which most of the work was
performed, the errors were so few and the actual losses to the United
States so insignificant.
In March, 1924, nearly a year ago, the House of Representatives
passed a resolution authorizing a special committee of five members
to investigate the Brewer charges. While the resolution did not
specifically refer to these charges, the discussion in Congress clearly
indicated that those who sponsored the resolution were inspired
by Brewer, who had given his charges wide publicity in a suit brought
by him in the Supreme Court of the District of Columbia against his
own Department head.
The Committee promptly designated Mr. Brewer to assist it in
conducting the investigation. Thus Mr. Brewer, having made the
charges which resulted in the passage of the resolution, has occupied
the triple role of investigator of his own accusations, prosecuting
attorney, and advisor to the jury. Naturally he presented only such
information and only such witnesses as in his opinion would tend to
establish his charges. He certainly had no interest in the truth if it
was inconsistent with the charges upon which his employment depended. At the beginning of the Committee's investigation, nearly
a year ago, the Treasury requested permission to review the testimony
of all the witnesses, including Mr. Brewer, and to cross-examine them,
and that request was frequently repeated. Notwithstanding this,
nearly all the witnesses were interviewed in secret executive session,
and although there has been ample time, the Treasury was denied
the privilege of hearing or even seeing a transcript of their testimony
or of cross-examining them. The Treasury was not given an opportunity to cross-examine Mr. Brewer, which would have enabled it to
show conclusively wherein he had evaded or distorted the facts.



344

REPORT ON T H E FINANCES

Under date of January 28, 1925, the Committee submitted to the
Treasury a list of five so-called ^^outstanding facts'^ with respect to
which it desired information. This information was conveyed, to the
Committee in m y letters of February 4 and February 11, 1925. I n
these letters the Committee was fully advised concerning:
(1) The authority of the Secretary of the Treasury to destroy Government securities;
(2) The method employed by the Treasury in giving tentative allocations of serial numbers where securities appear to bear duplicated
serial numbers;
(3) The facts concerning alleged paper and bond shortages;
(4) The method of certification employed with respect to securities
delivered for destruction; and
(5) The Liberty Bond transactions conducted by the War Finance
Corporation during the period 1918 to 1920.
I n this connection, I may say that the Treasury has at all times
held itself in readiness to cooperate with the Committee in every possible way and has repeatedly assured the Committee of its willingness
to furnish the facts concerning any matter under consideration. At
the same time it has pointed out the injustice of accepting the testimony of witnesses, many of whom were employees with fancied grievances who could not in the nature of things have had full knowledge
of the operations, without permitting the Treasury to cross-examine
them or answer their testimony.
Not only was the investigation of this character, but the Committee, though often invited by the Treasury to make a personal inspection of the activities about which its investigation has centered and
thus gain first-hand information regarding the methods under which
the i)ublic debt has been handled and the safeguards designed to protect its integrity, has not seen fit to do so. The importance of such
an inspection in connection with any effort to determine the facts is
readily apparent. Representative Strong, who, as I have said, did
not sign the report of the Committee, is the only member who recognized the necessity of personally viewing the Treasury's operations
in relation to public debt matters and who availed hiinseif of the
Treasury's invitation. .
The Committee's inquiry has been under way for nearly a year and
its report has been made public. The report is substantially a reiteration of the Mc Carter-Brewer charges with the exception that there
are added certain charges relating to the transactions of the War
Finance Corporation in Liberty Bonds during the period 1918 to 1920,
which were completely and conclusively refuted in a public hearing
on October 25, 1924, and in my letters to the Committee already
referred to.
The accusers of the Treasury, therefore, are as far now from proving their charges as they were in 1920. Mr. Brewer undertook to
investigate the Mc Carter charges, and after two and a half years
merely repeated them and admitted that he could not prove them to
be true. The Special Congressional Committee then undertook to
investigate Mr. Brewer's charges, and after the lapse of a year has
merely repeated many of the same charges and has developed no evidence to support them. Certainly, three and a half years of fruitless
investigation should be sufficient to demonstrate that the charges are




SECRETARY OF T H E TREASURY

345

baseless. The charges started with a great conspiracy and ''hundreds of millions" in fraudulent securities, but during the investigation these general charges have grown less and less, until now the
only specific evidence of fraud presented is the theft of $13,100 of
paid securities and their second presentation, the facts concerning
which the Treasury itself made known. This is not a duplication of
securities but a duplicate payment of the same securities.
The charges, for the most part, relate to transactions which took
lace before my administration of the Treasury. I feel that the
andling of the tremendous volume of war-time securities was exceptionally well conducted by the employees of the Treasury, and I
think the public should know that the charges are unworthy of further
consideration.
Faithfully yom"s,

E

A. W.

MELLON,

Secretary of the Treasury.
T H E PRESIDENT,

The White House.
EXHIBIT

86

STATEMENT BY THE SECRETARY OF THE TREASURY, SUPPLEMENTING HIS LETTER TO THE PRESIDENT, DATED MARCH 3,
1925, IN CONNECTION WITH THE ALLEGED DUPLICATE BONDS

The report submitted by three members of the Special Committee
appointed by the House to investigate the alleged duplicate bonds,
makes general charges that might lead the public to believe in the
existence of a fraudulent duplication of bonds. That is, that two
bonds were issued and the Treasury was only paid for one. Not a
single item of specific evidence of such duplication has been found in
nearly four years of investigation and not one is mentioned in the
majority report. The report mentions duplicate numbers; that is,
two bonds of the same number. This frequently occurs through
mechanical or clerical errors, but numbers are no proof of fraud.
Of course, if the United States received pay for two bonds bearing the
same number there is no duplication of debt. Yet the existence of
two bonds with the same number is all the majority of the Committee
have for their sensational charges.
These charges deal principally with the temporary bonds issued
in 1917 and 1918. In the higher denominations nearly all of these
temporary bonds have been received by the Treasury from the public
and if there had been two bonds issued and only one paid for our
records would now