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ANNUAL REPORT OF THE ecretary of the Treasury ON THE STATE OF THE FINANCES FOR THE FISCAL YEAR ENDED JUNE 30 1921 With Appendices WASHINGTON GOVERNMENT PRINTING OFFICE 1922 fllitilSlilIiMifiiiiSii T R E A S U R Y DEPARTMENT, Document No. 2898. Secretary. CONTENTS, R E P O R T OF THE SECRETARY OF THE TREA.SUR"S: Introduction : 1 Refunding of the short-dated debt 3 Revenue revision 6 Taxation and revenue ' 11 Surtaxes 14 Destruction of incentive ^ 16 Need for new capital 17 Diversion of capital 18 Freedom of business transactions essential 19' Injurious effect of high rates on the revenues 20* B u s i n e s s profits. 21 Estate tax 22 The remedy '. 25 Bureau of Internal Revenue 26 Prohibition and narcotic enforcement 30 Economy in Government expenditures, budget system 31 Loans to foreign Governments : 32 Funding legislation 40^ International financial situation 42 Domestic credit situation «.. 43 War Finance Corporation and its activities 49* Soldiers' bonus. 55 Securities owned by the United States Government 56Transactions in the interest-bearing public debt of the United States 58 Bonds purchased from repayments of foreign loans 60 Cumulative sinking fund 61 Expenditures for the sinking fund 62 Five per cent bond purchase fund 63 Bonds and notes retired on miscellaneous accounts 64 Treasury notes and certificates of indebtedness 65 Market prices of Liberty bonds and Victory notes 69 Government savings securities 71 Savings securities for 1921 74 _ Savings secmities for 1922 ,... 77 Railroads . 78 Section 204 78 Section 209 79 Section 210 : 80 Discontinuance of the subtreasuries 80 Deposits of Government funds 84 Gold 87 Gold production 90 Russian gold. -> 91 Silver V. 91 The mints 92 Federal Farm Loan System 93 Joint-stock land banks 94 Farmers' seed-grain loans 94 War risk insurance 95 Reorganization 9G War risk organization an d personnel 101 Soldiers' and sailors' civil relief act and bonds 102 District of Columbia teachers' retirement fund , 102 Hospitalization : 103 458 mMiwsmmmmmm IV . . CONTENTS. R E P O R T OF THE SECRETARY OF THE TREASURY—Continued. Public Health Service....' Coast Guard Ice patrol .-.-.Winter cruising. Cruises in northern waters .Anchorage and movements of vessels Derelicts Coastal communication ' Aviation , Coast Guard repair depot.. v Vessels a n d stations — — Customs laws Other activities Cominissioned personnel , Customs -..• Bureau of Engraving and Piinting o - Public buildings Inter-American High Commission General Supply Committee Checking accounts of Government corporations and Railroad Administration maintained with Treasurer of United States ." New currency designs Treasury organization Personnel Retirement of civil-service employees Surety bonds Annual report of delinquencies of disbursing officers i n the rendition of , their accounts Recognition of attorneys and agents representing claimants.before the Treasury and offices thereof Panama Canal Finances Receipts and expenditures, 1921 Postal Service... : Sinking fund Condition of the Treasury June 30, 1921 Comparison of receipts, fiscal years 1921 and 1920 Comparison of disbursements, fiscal years 1921 and 1920 Summary of receipts and expenditures, 1921, and estimated receipts and expenditures, 1922 and 1923 Classified ordinary expenditures, 1920 and 1921, etc Public debt expenditures and receipts, e t c . Estimated receipts and expenditures, 1922 Estimated postal revenues, 1922 Classification of estimated ordinary expenditures, 1922. .Estimated receipts and expenditures, fiscal year 1923 Estimated postal revenues, fiscal year 1923 -. Classification of estimated ordinary expenditures, fiscal year 1923 Estimated internal-revenue receipts under revenue act approved November 23, 1921 .^ Estimate of miscellaneous receipts for fiscal years 1922 and 1923, b)^ departments, etc . Estimates for 1923 and appropriations for 1922 Statement of estimates of appropriations for 1923 compared with appropriations for 1922., Exhibit of appropriations for 1922 Page 109 112 113 113 113 114 114 114 114 115 115 115 115 116 116 119 119 120 122 123 124 125 126 I27 129 129 130 131 132 132 136 137 137 140 142 151 154 155 156 156 156 158 159 159 160 161 161 162 163 Exhibits accompanying the report on the finances. Exhibit 1: Certificates of indebtedness: Total issues and amount issued through each Federal reserve bank and Treasury Department 169 Exhibit 2: Issues and retirements, certificates of indebtedness, fiscal year 1921 174 Exhibits 3 to 12, inclusive: Department Circulars Nos. 214, 222, 227, 232, 235, 238, 241, 246, 255, 264, certificates of indebtedness 177-189 Exhibits 13 and 14: Department Circulars 240 and 256. Treasury notes.. 190-192 CONTENTS. REPORT OF THE SECRETARY OF THE TREASURY—Continued. V Page. Exhibits 15 to 21: Offers to redeem before maturity Treasury certificates of indebtedness 193-195 Exhibits 22 to 25: Letters of the Secretary of the Treasury to banks and trust companies accompanying offers of Treasury certificates of indebted- , ness> .• 195-203 E x h i b i t 26: Statement of the public debt of t h e United States, J u n e 30, 1921 206 Exhibit 27: Preliminary statement of the public debt, Oct. 31, 1921 214 Exhibit 28: Quarterly comparative public debt statement, showing also figures for Aug. 31, 1919, when war debt was at its peak 214 Exhibit 29: Sections 204, 209, and 210 of transportation act 1920, as amended — ^ 215 Exhibit 30: Amounts of partial payments, and final payments, respectively, less deductions therefrom for indebtedness to the President to Nov. 15, 1921, inclusive, made to carriers in respect to the reimbursement of deficits provided in section 204 of the transportation act 1920, as amended 222 Exhibit 31: Amounts of advances, partial payments, and final payments, respectively, to Nov. 15, 1921, inclusive, made to earners in respect to the guaranty provided in section 209 of the transportation act 1920, as amended : , 223 Exhibit 32: Amounts of loans to Nov. 15, 1921, inclusive, made to carriers under-sec tion 210 of the transportation act 1920, as amended, and amounts of repayments on such loans '227 Exhibit 33: Letter of the Secretary of the Treasury of July 2,1921, to Hon. Joseph S. Frelinghuysen 229 Exhibit 34: Address of the President of the United States delivered to the Senate on J u l y 12, 1921, relative to the soldiers' adjusted compensation bill ' 232 Exhibit 35: Statement showing the transactions of the fiscal year 1921 on the basis of the daily Treasury statements 236 Exhibit 36: Clash expenditures of the Gevernment for fiscal years 1917 to 1921, inclusive, as published in the daily Treasury statements. 238 Exhibit 37: Classified receipts and disbursements of the United States Government, exclusive of the principal of the public debt, by months, from Apr. G, 1917, to Oct. 31, 1921, as published in daily Treasury statements . 240 Exhibit 38: Public debt of the United States; recapitulation of issues and retirements, fiscal year 1921 243 Exhibit 39: Issues and retirements, prewar loans matured, fiscal year 1921. 247 Exhibit 40: Issues and retirements, debt bearing no interest, fiscal year 1921 , 247 Exhibit 41: Issues and retirements, prewar loans unmatured, fiscal year 1921 : 247 Exhibit 42: Issues and retirements, Treasury (war) savings securities, fiscal year 1921 251 Exhibit 43: Issues and retirements, first Liberty loan of 1932-1947, fiscal year 1921 : 252 Exhibit 44: Issues and retirements, second Liberty loan of 1927-1942, fiscal year 1921 254 Exhibit 45: Issues and retirements, third Liberty loan of 1928, fiscal year 1921 255 Exhibit 46: Issues and retirements, fourth Liberty loan of 1933-1938, fiscal . year 1921 256 Exhibit 47: Issues and retirements, Victory Liberty loan of 1922-1923, fiscal year 1921 1 257 Exhibit 48: Liberty bonds and Victory notes, recapitulation of denominational exchanges 258 Exhibit 49: Conversion transactions, Nov. 15, 1917, to June 30, 1 9 2 1 . . . . . 260 Exhibit 50: Liberty loans outstanding, by denominations, June 30, 1921.. 262 Exhibit 51: Liberty bonds, Victory notes, Treasury notes, and certificates of indebtedness, securities account, showing by denominations the amounts delivered, retired, and outstanding, fiscal year 1921 268 Exhibit 52: Liberty bonds, Victory notes. Treasury notes, and certificates of indebtedness, deliveries, retirements, and outstanding, fiscal year. 1921 272 VI CONTENTS. REPORT OF THE SECRETARY OF THE TREAsuRY-^Continued. Page. Exhibit 53: Department Circular No. 225, receipt of Liberty bonds and Victory notes for estate or inheritance taxes 276 Exhibit 54: Department Circular No. 239, Victory Liberty loan subscrip, tions in default296 Exhibit 55: Department Circular No. 215, Treasury savings securities, series of 1921 297 Exhibit 56: Department Circular No. 216, agencies for the distribution and sale of Treasury savings securities during 1921 308 Exhibit 57: Department'Circular No. 217, further regulations governing Treasury savings certificates, series 1918, 1919, and 1920 316 Exhibit 58: Department Circular No. 220, surrender of war-savings certificates and stamps, series' of 1920; Treasury savings certificates, series of 1920, and thrift stamps held b y authorized agents and sales stations . . . . ' 323 -Exhibit 59: Department Circular No. 149 (revised). Treasury savings certificates .•* 327 Exhibits 60 to 66, inclusive: Department Circulars Nos. 213, 219, 221, 223, 224, 226, and 228, discontinuance of subtreasuries ' . . . . 333-339 Exhibit 67:. Department Circular No. 230, laws and regulations governing the recognition of attorneys and agents and other persons representing claimants before the Treasury Department and offices thereof 340 Exhibit 68: Letter of Secretary of the Treasury Apr. 30, 1921, to the chairman of the Committee on Ways and Means of the House of Representatives 349 Exhibit 69: Revision of internal taxes—statement of Secretary Mellon before the Committee on Ways and Means, Aug. 4, 1921 362 Exhibit 70: Summary of statement b y the Secretary of the Treasury for the Committee on Ways and Means 363 Exhibit 71: Letter of Secretary of the Treasury of Aug. 10, 1921, to Committee on Ways and Means 369 Exhibit 72: Statement, the White House, relative to internal taxation, Aug. 13,1921 372 Exhibit 73: Number of employees-retired under act of May 22, 1920, and total annual compensation received by such employees at the time of retirement 373 Exhibit 74: Number of employees in Treasury Department, by months, from October, 1920, to October, 1921, inclusive 374 Exhibit 75: Letter of Secretary of the Treasury Sept. 30, 1921, to Hon. Tasker L. Oddie on the gold bonus bill 376 Exhibit 76: Letter of Secretary of the Treasury to Hon. Louis T. McFadden with respect to proposed constitutional amendment to restrict the issue of tax-exempt securities 379 Exhibit 77: Department Circular No. 244, supervision of bureaus and offices of the Treasury Department and divisions of the office of the Secretary of the Treasury by the Under Secretary of the Treasury and the Assistant Secretaries of the Treasury 381 Exhibit"78: Classified statement of general sources of internal revenue, 1863 to 1921, inclusive 383 Abstracts of reports of bureaus and divisions. Treasurer of the United States 391 Comptroller of the Currency 394 . Number of national banks reporting, loans, cash in vault, total deposits, etc., June 30, 1920 and 1921 - 397 Banks under State supervision 398 All reporting banks in the United States 398 Number of national banks organized, consolidated under act of Nov. 7, 1918, etc., June 30, 1921 ." 402 Mint Service , 403^ Operations of the mints and assay offices 403"" Special coin issues 406 Stock of coin and bullion in the United States 406 Production of gold and silver 406 Industrial arts 406 Export of gold coin 407 Appropriations, expenses, and income 407 Deposits, income, expenses, and employees 409 CONTENTS. R E P O R T OF THE SECRETARY OF THE TREASURY—Continued. Bureau of Internal Revenue Cost of administration Income and profits, taxes '. Committee on Appeals and Review : Sales taxes Capital-stock tax Estate tax Child-labor tax Tobacco. •. Oleomargarine Collection field service ..' Solicitor's Office, Civil Diyision Penal Division National prohibition .. Bureau and field personnel Bureau:>of War Risk Insurance Marine and Seamen's Division Allotment and Allowance Division. Insurance Division Compensation and Insurance Claims Division ^ Medical Di vision Legal Division Finance Division Mail section Contact service section Personnel. Bureau of Engraving and Printing Customs ^ Office of the Supervising Architect B uildings Statement of claims filed under act of Congress approved Aug. 25,1919, etcStatement of appropriations Statement of classification of buildings by titles, showing expenditure in each class, etc • Public Health Service Scientific Research Division Division of Domestic (Interstate) Quarantine Division of Foreign and Insular Quarantine and Immigration'. Division of Sanitary Reports and Statistics Division of Marine Hospitals and Relief Division of Personnel and Accounts : » Division of Venereal Diseases General inspection service Educational section Chief clerk's office Purveving service .' Coast Guard. -\ Ice patrol to promote safety at sea . Winter cruising Cruises in northern waters ' Anchorage and movem.ents of vessels Florida coast patrol Removal of derelicts Coastal communication Aviation Recruiting : Coast Guard A cademy Coast Guard r.epair depot. Promotion in commissioned grades Discipline New vessels Stations .Enforcement of customs laws Other activities VII Page. 409 410 411 411 411 412 412 412 412 412 413 413 413 413 414 414 414 416417 421 425427 429 431 431 432 432 433 435436 441 442 445446. 446 447 447 448 449' 450 451 451 452 452 453 453 455456 456 457 458' 458 458 459 459' 460* 460* 460 461 461 461 462 462 VIII CONTENTS. H E P O R T OF THE SECRETARY OF THE TREASURY—Continued. Coast Guard—Continued. - Page. Repairs and improvements to vessels and stations : 462 Award of life-saving medals 463 Loans and Currency "465 Interest-bearing debt of the United States, changes during fiscal year 1921 1 466 Interest on registered bonds and notes ^ and registered certificates of indebtedness 466 Insular and District of Columbia loans, changes during year 467 Circulation...' 468 Paper custody 469 Custody of Federal reserve notes, series 1914 and 1918 469 War loan registered issues and interest payments, fiscal year 1921 470 Claims of lost, stolen, mutilated, or destroyed interest-bearing securities, fiscal year 1921 472 Register of the Treasury o 472. Retired securities received, examined, and filed in the Register's Office, fiscal j^ear 1921 475 Division of Deposits 476 Division of Bookkeeping and Warrants 477 Warrants issued during the fiscal year 1921 478 General fund ". 479 Public moneys 480 Fiscal officers' accounts 480 Alien Property Custodian account • 480 Purchase of farm loan bonds 480 Civil service retirement and disability fund 481 •Secret Service Division 481 Division of Printing and Stationery. 4,^2 Printing and binding 482 Stationery. 484 Postage and materials for bookbinder , . ' 485 Dej)artment advertising 485 Disbmsing clerk 486 'General Supply Committee 487 Tables accompanying the report on the finances. Table A.—Statement of the outstanding principal of the public debt of the United States June 30, 1 9 2 1 . . . : Table B.—Statement of the outstanding principal of the public debt of the United States on the 1st of July of each year from 1856 to 1921, inclusive : •.'... Table C.—Statement of the issue and redemption of loans and Treasury notes, and of deposits and redemptions in bank note account, fiscal year 1921 Table D.—Population, ordinary receipts, and- disbursements of the Government from 1840 to 1921, exclusive of postal, and per capita on receipts and per capita on disbursements T a b l e E.—Statement showing ordinary receipts and disbursements of the Government b y fiscal years; net gold and available cash in the Treasmy at the end of each fiscal year, and imports and exports of gold from 1897 to 1921, inclusive Table F.—Statement of balance in general fund of Treasmy, including gold reserve, by calendar years from 1791 to 1842 and by fiscal years from 1843 to 1921 Table G.—Receipts and disbursements of the United States Table H.—Internal and customs receipts and expenses of collecting, from 1858 to 1921 Table I.—Statement of coin and paper circulation of the United States from 1860 to 1921, inclusive, and amount of circulation per capita Table J.—Collectiohs, expenses, and average number of persons employed in the Internal Revenue Service, fiscal year 1921 Table K.—Statement of notes, bonds, and otlier obligations received and issued by office of Secretary of Treasury from July 1, 1920, to June 30, 1921 497 505 507 508 510 511" 512 525 52/ 528 529. CONTENTS. R E P O R T OF THE T R E A S U R E R : IX Page. Receipts and disbursements for 1920 and 1921 535 Panama Canal 536 Receipts and disbursements on account of the Post Office Department 537 Transactions in the public debt 538 Net earnings derived from Federal reserve b a n k s . . . . : 538 Payment of obligations of foreign Governments 538 Cumulative sinlang fund 539 Currency issued and redeemed 539 Payment of interest on registered bonds of the United States 540 • Reserve and trust funds 540 - Redemption of notes in gold 540 State of the Treasury, general fund—cash in the vaults 541 Net available cash balance, 1914 to 1921 542 Gold in Treasury from 1914 -. 542 Bonds held as security for bank circulation and deposits 542 . Bonds held as security for postal-savings funds 544 Postal-savings bonds and investments therein 544 Withdrawal of bonds to secure circulation. '. 544 Lawful money deposits for retirement of bank circulation • 545 Depositaries of the United States :. 545 Public moneys in depositary banks 545 Interest on public moneys held in depositary banks , 546 Gold fund. Federal Reserve Board 547 Monetary stock, 1920 and 1921 547 Ratio of gold to total stock of money 548 Money in circulation " 548 Circulation and population '. :..^. 548 Paper currency issued directly by the Government : 549 United States notes 549 Treasury notes of 1890 v 550 Gold certificates 551 Silver certificates 551 Changes in denominations during fiscal year 1921 552 Pieces of United States paper currency outstanding.; 552 Cost of paper currency '. 552 Average life of paper currency 553 Paper currency prepared for issue and amount issued 554 Paper currency held in the reserve vault 555 Paper currency redeemed 555 Standard silver dollars -. 556 ' Subsidiary silver coin .' 556 Minor coin - - • -: ^^Q Deposits of gold bullion at mints and assay offices, 1919, 1920, and 1 9 2 1 . . . 559 Shipments of currency from Washington, 1920 and 1921 "559 - Recoinage, 1920 and 1921 559 Redemption of Federal reserve and national currency 560 Special trust funds and changes therein during the fiscal year 561 District of Columbia sinking fund 564 Discontinuance of subtreasuries 564 General account of the Treasurer of the United States 564 Tables accompanying the report of the Treasurer. No. 1.—General distribution of the assets and liabilities of the Treasury, June 30, 1921 No. 2.—Available assets and net liabilities of the Treasury at the close of June, 1920 and 1921 ' No. 3.—Distribution of the General Treasury balance, June 30, 1921 No. 4.—Estimated stock of gold coin and bullion, the amount in the Treasury, and the amount in circulation at the end of each month, from January, 1919 No. 5.—Estimated stock of silver coin, the amount in the Treasury, and the amount in circulation at the end of each month, from January, 1919. Also silver, other than stock, held in the Treasury. No. 6.—United States notes, Treasury notes, Federal reserve notes, and national-bank notes outstanding,'in the Treasury, and in circulation at the end of each month, fr om January, 1919 567 568 569 569 571 573 X CONTENTS. R E P O R T OP THE TREASURER—Continued. No. 7.—Gold certificates and silvei: certificates outstanding, in the Treasury, and in circulation at the end of each month, from January, 1919 No. 8.—Estimated stock of all kinds of money at the end of each fiscal . year, from 1880 to 1921 No. 9.—Estimated amount of all kinds of money in circulation annually from 1896 to 1921 No. 10.—Assets of the Treasury other than gold, silver, notes, and pertificates at the end of each month, from January, 1919 No. 11.—Assets of the Treasury at the end of each month, from January, 1919 . No. 12.—Liabilities of the Treasury at the end of each month, from January, 1919 No. 13.-7United States notes of each denomination issued, redeemed, and outstanding at the close of each fiscal year, from 1918 No. 14.—Treasury notes of 1890 of each denomination issued, redeemed, and outstanding at the close of each fiscal year, from 1918 No. 15.^-Gold certificates of each denomination issued, redeemed, and out. standing at the close of each fiscal year, from 1919 No. 16.—Silver certificates of each denomination issued, redeemed, and outstanding at the close of each fiscal year, from 1919 No. 17.—Amount of United States notes. Treasury notes, gold and silver certificates of each denomination issued, redeemed, and outstanding at the close of each fiscal year, from 1918 No. 18.—Old demand notes of each denomination issued, redeemed, and outstanding June 30, 1921 No. 19.—Fractional currency of each denomination issued, redeemed, and outstanding June 30, 1921 No. 20.—Compound-interest notes of each denomination issued, redeemed, and outstanding June 30, 1921 No. 21.—One and two year notes of each denomination issued, redeemed, and outstanding June 30, 1921 No. 22.—United States notes and Treasury notes redeemed in gold, from 1879, and imports and exports of gold during each fiscal year, from 1916..' No. 23.—Balance in the Treasury, amount in Treasury offices, and amount in depositary banks, from 1789 to 1921 No. 24.—Federal reserve and national banks designated depositaries of public moneys, with the balance held June 30, 1921 No. 25.—Number of banks wdth semiannual duty levied, by fiscal years, and number of depositaries with bonds as security, by fiscal years , No. 26.—Seven-thirty notes issued, redeemed, and outstanding June 30, 1921 : : No. 27.—Refunding certificates, act of February 26,1879, issued, redeemed, and outstanding June 30, 1 9 2 1 . . . . ' No. 28.—Checks issued by the Treasurer for interest on registered bonds during the fiscal year 1921 No. 29.—Interest on 3.65 p e r c e n t bonds of the Districtof Columbia paid duiing the fiscal year 1921 No. 30.—Coupons from United States bonds and interest notes paid during the fiscal year .1921, classified by loans No. 31.—Public debt'at the close of June, 1920 and 1921, and changes during the year No. 32.—Checks drawn by the Secretary and paid by the Treasurer for interest on registered bonds of the United States during the fiscal year 1921 No. 33.—^Money deposited in the Treasury each month of the fiscal year 1921 for the redemption of national-bank notes No. 34.—Amount of currency counted into the cash of the National Bank Redemption Agency and redeemed notes delivered, by fiscal years, from 1915 No. 35.—Currency received for redemj)tion by the National Bank Redemption Agency from the principal cities and other places, by fiscal • years, from 1915, in thousands of dollars No. 36.—^Mode of payment for currency redeemed at the National Bank Redemption Agency, by fiscal years, from 1915 Page. 575 578579 580 580 581 581. 582 583' 584 585586 586 586 586 587 587 590 592 592 592 592 592 593 593 595 595 596 597 597 . CONTENTS. H E P O R T OF THE TREASURER—Continued. . XI . No. 37.—Deposits, redemptions, assessments for expenses, and transfers and repayments on account of the 5 per cent redemption fund of national banks, by fiscal years, from 1915 No. 38.—Deposits, redemptions, and transfers and repayments on account of the retirement of circulation, by fiscal years, from 1915 . No. 39.—Expenses incurred in the redemption of national and Federal reserve currency, by fiscal years, from 1915 ,... No. 40.—General cash account of the National Bank Redemption Agency for the fiscal year 1921 and from July 1,1874 No. 41.—Average amount of national-bank notes outstanding and the redemption, by fiscal years, from 1875 (the first year of the agency) No! 42.—Federal reserve notes, canceled and uncanceled, forwarded b y Federal reserve banks and branches, counted and delivered to the Comptroller of the Currency for credit of Federal reserve agents No. 43.—Changes during the fiscal year 1921 in the force employed in the Treasurer's office Page. 597 598 598 599 599 599 600 R,EPORT OF THE DIRECTOR OF THE M I N T : Operations of t h e mints and assay pffices ....'........ .601 Institutions of t h e m i n t service 601 Coin demand 601 Gold operations 602 Silver operations , • 602 Deposits of gold and silver ^ 603 Subtreasury functions acquired 603 Explosion i n Wall Street 604 Refineries 604 Coinage. 604 Special coin issues 604 Stock of coin and bullion i n t h e United States 605 Production of gold and silver 605 Industrial arts 605 Export of gold c o i n . . . . . . . . 605 Estimates for t h e fiscal year 1923 605 Appropriations, expenses, and income 605 Additions and improvements. ./ » 606 Philadelphia Mint 606 San Francisco Mint .. 607 Denver Mint 610 New York Assay Office : 610 Income and expenses of t h e fiscal year 1921 610 Deposits, income, expenses, and employees, b y institutions, fiscal year 1921.... 612 Details of coinage 612 Deposits of foreign gold bullion and coin 614 Deposits of foreign silver bullion and coin 614 Issue of fine gold bars for gold coin and gold bullion -.''.... 615 Balances, receipts, and disbursements of gold bullion 616 Purchase of minor coinage metal for use i n domestic coinage 617 Purchase of minor coinage blanks prepared for coinage. 617 Distribution of minor coins 618 Minor coins outstanding 618 Operations of the assay departments , 618 •Operations of t h e melting and refining and of t h e coining departments, fiscal year 1921 619 Gold bullion 1 620 Nickel coinage metal 621 Refining operations :. 622 Ingot melts m a d e . . . : 622 Fineness of melts for gold and silver ingots 623 •Commercial and certificate bars manufactured , 623 Ingots operated upon b y coining departments and percentage of coin produced-. . , 624 Percentage of good coin produced to pieces struck : 624 Sweep cellar operations 625 XII CONTENTS. I I E P O R T OF THE DIRECTOR OF THE M I N T — C o n t i n u e d . Bullion gains and losses Wastage and loss on sale of sweeps Engraving department, Philadelphia Mint Medals manufactured Medals sold Progress of the numismatic collection Employees, Mint Service Visitors, Philadelphia Mint Work of the minor assay offices Ore assays..: Gold receipts at Seattle." • Laboratory of t h e Bureau of t h e Mint Assay Commission's annual test of coin Tables, Report of Director of the Mint Page. 625 626 626 627 627 627 628 628 628 629 629 630 631 632 ' , .• R E P O R T OP THE R E G I S T E R : Coupon bonds prepared for issue Registered securities issued Bonds redeemed •. ' Bonds and notes purchased by the Secretary Bonds and notes received on account of estate and inheritance taxes Treasury certificates of indebtedness. . . . : War savings securities Paid interest coupons Total securities paid '. Securities received for credit to fiscal agency account Exchange of temporary bonds for permanent bonds Registered bonds retired Total securities received for all accounts Destruction of retired securities Securities i n t h e files. Progress since reorganization of public-debt service Allocation of functions in the Register's office Office force • Summar.y of securities received, examined, and retired Statistical statements .' -.. 670 670 670 670 670 670 671 671 671 671 672 672 672 672 673 673 673 674 675 677 R E P O R T OF THE COMPTROLLER OF THE CURRENCY: Submission of report : Legislation recommended: National-bank charters Perpetual charters Consolidation of State m t h national banks Bank branches Safe deposit company stock Penalty for embezzlement, etc Directors' reports to shareholders Reports of condition 1 Appointment of national-bank examiners and assistants Legislation previously recommended Condition of national banks at the date of each call during the report year. Condition of national banks, September 6, 1921: iElesources— Loans and discounts Overdrafts XJnited States Government securities Other bonds, stocks, and securities, etc ,. Bank premises and other real estate owned Cash in vault. ., ' Due from banks and bankers. Exchanges for clearing house :... All other assets Liabilities— Capital stock, surplus, and undivided profits " National-bank notes outstanding Deposits Bonds and borrowed money Bank acceptances : Aggregate resources and liabilities , 769 773 776 776 777 777 778 778 ~778 778 779 779 781 781 782 782 782 782 782 782 782 783 783 783 783 784 784 CONTENTS. R E P O R T OF THE COMPTROLLER OF THE CURRENCY-^COUtinued. Principal items of national-bank resources and liabilities on September 6, 1921, arranged by States Condition of national banks, June 30, 1921 • Summary of reports of condition of national banks in the United States, Alaska, and Hawaii, at close of business, June 30,1921 Loans and discounts by national banks in reserve cities and States Loans and discounts b y national banks, character of. June 30, 1921 Comparative statement of loans and discounts by national banks during the past three fiscal years : Real estate loans by national banks in reserve cities and States, June 30,, 1921 ' Investments of national banks, June 30, 1921. United States, domestic and foreign bonds and securities, etc., held b y national banks in reserve cities and States, June 30, 1921 United States Government securities held by national banks in reserve . cities and States, June 30, 1921 .* Savings deposits and depositors in national banks in reserve cities and States, June 30, 1921 Relation of capital of national banks to deposits, etc • Percentage of principal items of assets and liabilities of national banks at date of fall report, 1914 to 1921, inclusive .---.--Progress of national banks since passage of Federal reserve act, principal items of assets and liabilities, 1913-1921 Earnings, expenses, and dividends of national banks, years ended June 30, 1920-1921 Earnings, expenses, and dividends of national banks, in reserve cities and States, year ended June 30, 1921 \ Earnings, expenses, and dividends of national banks b y Federal reserve districts, year ended June 30,1921 National-bank investments in United States Government securities and otherbonds and securities, etc., loans and discounts (including rediscounts), and losses charged off on account of bonds and securities, and loans and discounts, years ended June 30, 1918 to 1921, inclusive Number of national banks, capital, surplus, dividends, and net addition to profits, etc., years ended June 30, 1914 to 1921 •. Nonborrowing national banks, b y States, April 28, 1921 Shareholders and shares of stock of national banks, in reserve cities and states National banks classified according to capital stock in reserve cities and States, September 6, 1921 Dormant deposit accounts in national banks, February 21, 1921 National-bank examiners Assessments on national banks to pay salaries and expenses of nationalbank examiners, year ended October 31, 1921 Expenditures of office of Comptroller of Currency, fiscal year ended June 30, 1921 Bank officers and employees convicted of criminal ^dolations of law during year ended October 31,1921 ' : National-bank failures -. Forfeiture of charter National-bank charters applied for, granted, and refused Increases and reductions of capital stock of national banks : Liquidation of national banks Consolidation of national banks Growth i n number and capital of national banks National banks organized since 1900 State banks converted or reorganized into national banking associations since 1900 Organization and liquidation of national banks Number and authorized capital of national banks chartered and the number and capital stock of banks closed in each year ended October 31, since 1913, with yearly increase or decrease Number of, national banks organized, consolidated, under act of November 7, 1918, insolvent, in voluntary liqiddation, and in operation, October 31, 1921 , .National banks chartered dming year ended October 31, 1921 Xlir Page. 785 787 787 788' 794 794 795797 798803 808. 810" 810 811 814 815> 824 826' 826 826 830 836 850' 851 853 854 854 857 859' 860861 861 861 862 863 863 863864 864865 XIV CONTENTS. R E P O R T OF THE COMPTROLLER OF THE CuRRENCY-^Continued. Page. National banks organized, failed, and reported in voluntary liquidation during year ended October 31, 1921 870 Number and classification of national banks chartered during year ended October 31, 1921. 871 Conversions of State banks and primary organizations as national banks since 1900 871 Number and capital of State banks converted into national banking associations in each State and Territory, from 1863 to October 31,1921. . . . 872 Expirations and extensions of charters of national banks 872 Number of national banks in each State, t h e charters of which were extended under the act of July 12, 1882, to October 31, 1921 873 Number of national banks in each State, the charters of which were reextended under the act of July 12, 1882, as amended April 12, 1902, to October 31,1921 873 Changes of title of national banks. 873 Changes of title incident to consolidations of national banks 874 Number of national banks increasing their capital with amount of increase monthly, for years ended October 31, 1920 and 1921 875 Domestic branches of national banks 875 Foreign branches of national banks r 877 Condition of foreign branches of National City Bank, New York, N. Y., and First National Bank, Boston, Mass., June 30,1921 878 Interest-bearing debt of the United States 882 United States bonds on deposit as security for circulation and deposits of such bonds made during t h e past year 883 Profit on national-bank circulation 883 Monthly range of prices of United States bonds 884 Redemption of national and Federal reserve bank circulating notes . 884 Amount of currency received for redemption monthly, November-l, 1920, to October 31, 1921 885 National-bank circulation issued and retired yearly from Noveinber 1,1913, to October 31, 1920; amount issued and retired quarterly duiing vear ended October 31, 1921; and grand total for 8-year period, 1914-1921.... 886 Denominations of national-bank circulation outstanding,j October 31,1921. 886 National-bank circulation in vaults of Currency Bureau at close of business, October 31, 1921 886 National-bank currency issued to banks from November 1,1920, to October 31, 1921 887 National-bank currency, denominations, received from Bureau of Engraving and Printing and issueci to banks, year ended October 31,1921 . 887 Federal Reserve System— Development of, by years, as shown by statements of Federal Reserve Board during latter part of November of each year since 1914 to 1920 and on October 26, 1921 888 Condition of the 12 Federal reserve banks at the close of each month from January 25, 1918, to October 26,1921 889 Percentage of bills discounted secured by United States Government . obligations to the total bills discounted and purchased b y Federal reserve banks, at the end of each moiith, year ended October 31, 1921 ' 890 Federal reserve bank discount rates 890 Federal reserve notes— Out^standing, secured by e:old, commercial and other eligible paper, December 3, 1920, to October 26, 1921 890 Vault balance, October 31, 1921 892 Issued, retired, and outstanding, October 31, 1921 892 . Received for destruction •. 892 Federal reserve bank' notes— Denominations issued to Federal reserve banks upon deposit of securities under provisions of the act of April 23, 1918. ' 893 United States bonds and special certificates of indebtedness deposited by Federal reserye banks for circulation, amount, ^\dthdrawn by banks reducing circulation during each month, year ended October . 31 1921 893 Vault balance, October s i , 1921 894 CONTENTS. XV R E P O R T OF THE COMPTROLLER OF THE CURRENCY—Continued. Federal reserve bank notes—Continued. . Issued, redeemed, and outstanding October 31, 1921 Denominations printed, year ended October 31, 1921 Denominations issued, year ended October 31, 1921 '. National bank notes, Federal reserve notes, and Federal reserve bank notes, printed^ ahd delivered by Bureau of Engraving and Printing, issued, retired,' etc., year ended October 31,1921 Monetary stocks in the principal countries of the world, end of calendar year 1920 :; : Banking power of the United States ". '. Money in the United States Stock of money in the United States, in the Treasury, reporting banks. Federal reserve banks, and in general circulation Rates for inoney in New York Rates for sterling bills New York Clearing House •Cleaiing house associations in t h e U n i t e d States, comparison of transactions of, in the 12 Federal reserve bank cities and in other cities, etc., years ended September 30,1920 and 1921 Resources of the central banks in foreign countries . — Imports and "exports of merchandise, gold and silver, calendar years 1914 to 1920 and from January to October 31,1921 Banks other than national— State (commercial) banks, condition of, J u n e 30, 1921 :. Loan and trust companies, condition of, June 30. 1921. Principal items of resources and liabilities of loan and ti-ust companies -on or about June 30 of each year from 1914 to 1921, inclusive Stock savings banks, condition of, June 30, 1921 Stock savings banks, number of depositors, aggregate deposits, and average deposit account, b y States, June 30,1920 and 1921 Mutual savings banks, condition of, June 30,1921 Unanticipated conditions revealed m t h respect to number of depositors and volume of deposits in m u t u a l savings banks, year ended June 30, 1921 : Mutual savings banks, number of depositors, aggregate deposits, and average deposit account, by States, June 30,1920 and 1921 Mutual savings banks, number of depositors, total deposits, and average amount due each depositor, years ended June 30,1914 to 1921. Mutual and stock savings banks, number of depositors, individual deposits and average amount due each depositor, years ended J u n e 30, 1914 to 1921 ;• : Private banks, condition of, June 30, 1921 All reporting (State, savings, private banks and loan and trust companies), condition of, June 30, 1921 Resources and liabilities of each class of reporting banks, June 30,1921. Principalitems of resources and liabilities of, in 5-year period, 19171921 ".. Condition of, in each State and island possession, June 30, 1921 All reporting banks (including national)— Principal items of .resources and liabilities, June 30, 1921 and 1920.... Resources and liabilities of, in each State and island possession, June 30, 1921 Summary of combined returns, June 30, 1921 Increase in resource's of, in 7-year period — . — Resources and liabilities of, 1916-1921 National and Federal reserve banks. State, savings, private banks, and loan and trust companies, June 30,1921 Individual deposits in all reporting banks, classification of, June 30,1921.. Cash in all reporting banks, classification of, June 30, 1921 ' Building and loan associations in the United States— Statistics relative to, in each State, 1920-1921 Progress of, since 1893 Building and loan associations in the District of Columbia, statistics relative to ^ :: :........ Banks in the District of Columbia, statistics relative to Earnings, expenses, and dividends of savings banks and trust companies in the District of Columbia, years ended June 30, 1920 Rnd 1921 70073—FI.1921 II I'age. 894 894 - 894 894 894 898 898 899 900 901 902 902 903 904 905 907 909 909 911 912 913 915 916 916 916 918 920 .921 921 930. 930 936 937 939 940 941 941 942 943 944 944 945 XVI ~ CONTENTS. R E PORJ OF THE COMPTROLLER, OF THE CURRENCY—Continued. . Page. United States Postal Savings System, statistics relative to, years ended June 30, 1920-1921 Savings banks in the principal countries of the world Guaranty of bank deposits, data relative to, in Oklahoma, Texas, Kansas, Nebraska, North Dakota, Washington, South Dakota, and Mississippi... FederaL Farm Loan System— Statement of condition of the 12 Federal land banks, close of business, October 31, 1921 .' : Farm-loan bonds, statement of • Joint-stock land iDanks, condition of, October 31, 1921 Conclusion 946 952 955 961 963 963 964 R E P O R T OF THE COMMISSIONER OF I N T E R N A L R E V E N U E : Introduction : Collections Cost of adininistration Inadequate housing of bureau Income Tax Unit Work accomplished ' Personnel Field service. •. Statistical service -. Information service Claims Changes and improvements in organization and procedure Statenient of aims and necessities... Committee on Appeals and Review : . . .* Estate, Capital-Stock, and Child-Labor Tax Unit Personnel ' Taxes collected •.'. : Estate Tax Division. Capital-Stock Tax Division Child-Labor Tax Division Sales Tax Unit Tobacco Miscellaneous taxes Oleomargarine Adulterated butter. .• Renovated.butter Mixed flour Collection field service Additional collection districts Accounting s y s t e m . . . • Internal-revenue manual Correspondence study courses. • Number of collectors' employees Field work Accounts Unit : Prohibition Unit '. Office of Counsel and Legal Division Prohibition field force Narcotic field force .' Permit Division : Industrial Alcohol^and Chemical Division Division of Audit and Statistics .Personnel Solicitor of Internal Revenue Conference committee cLegislation Interpretative Division I Interpretative Division I I Civil Division : Penal Division Administrative Division Statistical surnmary of work Suits and prosecutions Stamps 1 Bureau and field personnel Tables......... , -.... ,... ,. ,..-.. --, , 967 967 • 969 969 970 970 971 971 971 972 972 972 974 974 975 976 976 976 977 978 979 981 982 982 983 983 984 984 984 985 985 985 985 986 986 987 987 988 989 989' -990 992 995 995 995 996 996 997 997 999 1000 1000 1001 1001 1002 1003 SECRETARIES OF THE TREASURY AND PRESIDENTS UNDER WHOM THEY SERVED. NOTE.—Robert Morris, the first financial officer ofthe Government, was Superintendent of Finance from 1781 to 1784. Upon the resignation of Morris, the powers conferred upon him were transferred to the "Board of the Treasury.", Those who finally accepted positions on this board were John Lewis Gervais, Samuel Osgood, and Walter Livingston. The board served until Hamilton assumed oflice in 1789. Secretaries of Treasury. Presidents. Term of service. From— Washington. Adams. Jefferson.. Madison. Monroe... Adams, J. Jackson... VanBuren. Harrison Tyler...:... Polk. Taylor... FiUmore.. Pierce Alexander.Hamilton, New York Oliver Wolcotf, Coimecticut Oliver Wolcott, Connecticut Samuel Dexter, Massachusetts Samuel Dexter, Massachusetts Albert Gallatin, Pennsylvania Albert Gallatin, Pennsylvaniai George W. Campbell, Tennessee Alexander J. Dallas, Pennsylvania.. Wm. H. Crawford, Georgia Wm. H. Crawford, Georgia Richard Rush, Pennsylvanias Samuel D. Ingham, Pennsylvania 3.. Louis McLane, Delaware Wm. J. Duane, Pennsylvania Roger B. Taney, Maryland ^ Levi Woodbury, New Hampshire.. Levi Woodbury, New Hampshire ^. Thomas Ewing, Ohio Thomas Ewing, Ohio ^ Walter Forward, Pennsylvania ^ John C. Spencer, New Yorks Geo. M. Bibb, Kentucky Geo. M. Bibb, Kentucky Robt. J. Walker, Mississippi3...: Wm. M. Meredith, Pennsylvania... Wm. M. Meredith, Pennsylvania... Thos. Corwin, Ohio James Guthrie, Kentucky Sept. Feb. Mar. Jan. Mar. May Mar. Feb. 11,1789 3,1795 4,1797 1,1801 4,1801 14,1801 4,1809 9,1814 6,1814 Oct. Oct. 22,1816 Mar.' 4,1817 Mar. 7,1825 Mar. 6,1829 Aug. 8,1831 May 29,1833 S e p t . 23,1833 J u l y 1,1834 Mar. ' 4,1837 Mar. 6,1841 A p r . 5,1841 S e p t . 13,1841 Mar. 8,1843 J u l y 4,1844 Mar. 5,1845 Mar. 8,1845 Mar. 8,1849 J u l y 10,1850 J u l y 23,1850 Mar. 7,1853 ToJ a n . 31, 1795 Mar. 3, 1797 D e c . 3 1 , 1800 Mar. 3, 1801 May 13, 1801 Mar. 3, 1809 A p r . 17, 1813 Oct. 5, 1814 Oct. 21, 1816 Mar. 3, 1817 Mar. 6, 1825 Mar. 5, 1829 J u n e 20, 1831 May 28, 1833 Sept.22, 1833' J u n e 25, 1834 Mar. 3, 1837 Mar. 3, 1841 A p r . 4, 1841 S e p t . l l , 1841 Mar. 1, 1843 May 2, 1844 M a r . 4, 1845 Mar. 7, 1845 Mar. 5, 1849 J u l y 9, 1850 J u l y 22, 1850 Mar. 6, 1853 Mar. 6, 1857 . 1 While holding the oflice of Secretary of the Treasury, Gallatin, was commissioned envoy extraordinary and minister plenipotentiary April 17,1813, with John Quincy Adams and James A. Bayard, to negotiate peace with Great Britain. On February 9,1814, his seat as Secretar;^^ of the Treasury was declared vacant because of his absence in Europe. William Jones, of Pennsylvania (Secretary of the Navy), acted ad interim Secretary ofthe Treasury from April 21, 1813, to February 9, 1814. 2 Rush was nominated March 5,1825, confirmed and commissioned March 7,1825, but did not enter upon the discharge of his duties until August 1, 1825. Samuel L. Southard, of New Jersey (Secretary of the Navy), served as ad interim Secretary of the Treasury from March 7 to July 31, 1825. 8 Asbury Dickens (Chief Clerk), ad interim Secretary of the Treasury June 21 to August 7, 1831. * McGlintock Young (Chief Clerk), ad interim Secretary of the Treasury from June 25 to 30, 1834. 5 McCIintock Young (Chief Clerk), ad interim Secretary of the Treasury from March 4 to 5, 1841. 6 McCIintock Young (Chie'f Clerk), ad interim Septernber 13, 1841. ^ McCIintock Young (Chief Clerk), ad interim March 1 to 7, 1843. 8 Spencer resigned as Secretary ofthe Treasury May 2,1844; McCIintock Young (Chief Clerk), ad interim from May 2 to July 3,1844. »McCIintock Young (ChiefClerk), ad interim March 6 to 7,1849. XVII XVIII SECRETARIES OF ' T H E TREASURY. Secretaries of the Treasury, and Presidents under lohom they served—Continued. Presidents. Buchanan. Lincoln. Johnson. Grant... Garfield. Arthur.. Cleveland. Harrison, Benj. Cleveland. McKinley. Roosevelt. Taft.... Wilson. Harding. Secretaries of Treasury. Howell Cobb, Georgia ^o Philip F. Thomas, Maryland. John A. Dix, New York Salmon P. Chase, Ohio ^ Wm. P. Fessenden, Maine 12 Hugh McCulloch, Indiana '.... Hugh McCulloch, Indiana i3 Geo. S. Boutwell, Massachusetts Wm. A. Richardson, Massachusetts. Benj. H. Bristow, Kentucky ^^ Lot M. Morrill, Maine • Lot M. Morrill, Maine John Sherman, Ohio ^^ Wm, Windom, Minnesota '... Wm. Windom, Miimesota Chas. J. Folger, New York.ie ;... •Walter Q. Gresham, Indiana , Hugh McCulloch, Indiana Hugh McCulloch, Indiana Daniel Manning, New York Chas. S. Fairchild, New York •... Chas. S. Fairchild, New York .• Wm. Windom, Minnesota^' Chas. Foster, Ohio. .• Chas. Foster, Ohio John G. Carlisle,. Kentucky John G. Carlisle, Kentucky Lyman J. (>age, Illinois Lyman J. Gage, Illinois L. M. Shaw, Iowa ' .'... George B. Cortelyou, New York Frankhn MacVeagh, Illinois W. G. McAdoo, New York :. Carter Glass, Virginia..: ......^ David F. Houston, Missouri Andrew W. Mellon, Pennsylvania Term of service. From— Mai-. 7,1857 Dec. 12.1860 Jan. 15.1861 Mar. 7,1861 July 5.1864 Mar. 9.1865 Apr. 16,186.5 Mar. 12,1869 Mar. 17,1873 June 4,1874 July 7.1876 Mar." 4.1877 Mar. 10,1877 Mar. 8,1881 Sept. 20,1881 Nov. 14,1881" Sept. 25,1884 Oct. 31,1884 Mar. 4,1885 ToDec. 8,1860 Jan. 14,1861 Mar. 6,1861 June 30,1864 Mar. 3,1865 Apr. 15,1865 Mar. 3,1869 Mar. 16,1873 June 3,1874 June 20,1876 Mar. 3,1877 Mar 9,1877 Mar. 3,1881 Sept. 19,1881 Nov. 13,1881 Sept 4,1884 Oct. 30,1884 Mar. 3,1885 Mar. 7,1885 8,1885 Mar. 31,1887 1,1887 Mar. 3,1889 4,1889 Mar. 6,1889 7,1889 Jan. 29,1891 25,1891 Mar. 3,1893 4,1893 Mar. 6,1893 7,1893 Mar. 3,1897 Mar. Apr. Mar. Mar. Feb. Mar. Mar. Mar. 4,1897 Mar. 6,1897 Sept. 15,1901 Feb. 1,1902 Mar. 4,1907 Mar. 8,1909 Mar. 6,1913 Dec. 16,1918 Feb. 2.1920 Mar. 4.1921 Mar. 5,1897 Sept.14,1901 Jan. 31,1902 Mar. 3,1907 Mar. 7,1909 Mar. 5,1913 Dec. 15,1918 Feb. 1,1920 Mar. 3,1921 ^ 10 Issac Toucy, of Connecticut (Secretary of the Navy), acted as Secretary of the Treasurv ad interim December 10 to 12,1860. 11 George Harrington, District ofColumbia (Assistant Secretary), ad interim July 1 to 4,1864. i» George Harrington (Assistant SecretarjO, ad interim March 4 to 8. 1865. 13 John F. Hartley, of Maine (Assistant Secretary), ad interim from March 5 to 11,1869. i< Charles F. Conaut, of New Hampshire (Assistant Secretary), ad interim June 21 to 30 [July 6], 1876. 16 Henry E. French, of Massachusetts (Assistant Secretary), ad interim March 4 tb 7, 1881. 16 Charles E. Coon, of New York (Assistant Secretary), ad interim September 4 to 7, 1884; Henry F.' French, of Massachusetts (Assistant Secretary), ad interim September 8 to 14, 1884; Charles E. Coon ad interim September 15 to 24,1884. 17 A. B. .Nettleton, of Minnesota (Assistant Secretary), ad interim January 30 to February 24,1891. ASSISTANT SECRETARIES OF THE TREASUKY.- XIX UNDERSECRETARIES OF THE TREASURY AND PRESIDENTS AND SECRETARIES UNDER WHOM THEY SERVED. President. Harding Secretary. Undersecretary.! Term of ser\ace. °'Mellon.......... S. Parker Gilbert, jr., New Jersey 1 Office established act June 16,1921. ' From— July 1,1921 To- ' ASSISTANTS TO THE SECRETARY OF THE TREASURY ^ AND PRESIDENTS AND SECRETARIES UNDER WHOM THEY SERVED. Presidents. Secretaries. Assistants to the Secretaries. Term of service. From— Hamilton Tfinch Gnxe, PftTiTiRylvania Sept. 11,1789 Washington Wilson. . . . . McAdoo.. . . . . . . George R. Cooksey, District of Colum- Mar. 6,1917 . bia. Glass. Houston. To— May 8,1792 Mar. 4,1921 1 Office established Sept. 2, 1789; abolished act May 8, 1792; reestablished act Mar. 3, 1917. Appointed by the Secretary. ASSISTANT SECRETARIES OF THE TREASURY AND PRESIDENTS AND SECRETARIES UNDER WHOM THEY SERVED. Presidents. Taylor . *... . Filmore Pierce Buchanan Lincoln Johnson Lincoln Johnson Lincoln - Secretaries. Meredith Meredith. Corwin. Cor\vin Guthrie. Guthrie Cobb. Cobb: Thomas. Dix. Chase Fessenden. McCulloch. McCulloch. Chase Fessenden. McCulloch. McCulloch. Fessenden Term of service.. Assistant Secretaries.^ From— Charles B. Penrose, Pennsylvania...^. Mar. 12,1849 Allp.TJ A , TTall, Pennsylvania.. . , , . , . - . Oct. 10,1849 Tc— Oct. 9 1849 Nov. 15,1850 William L. Hodge, Tennessee Nov. 16,1850 Mar. 13^1853 Peter G. Washington, District of Columbia. Mar. Philip Clayton, Georgia George Harrington, District of Columbia. 4,1853 Mar. 13,1857 Mar. 13,18612 Mar. 12,1857 Jan. 16,1861 July 11,1865 • Maunsell B. Field, New York WilUam. E. Chandler, New Hampshire. Mar. 18,1864. Jan. 5,1865 June 15,1865 Nov, 30,1867 McCulloch. Johnson — McCulloch. 1 Office established act Mar. 3, 1849; appointed by the Secretary. Act Mar. 3, 1857, made the office Presidential. 2 Act-Mar. 14, 1864, provides one additional Assistant Secretary. XX ASSISTANT SECRETARIES OF THE TREASURY. Assistant Secretaries of the Treasury'and Presidents and Secretaries under whom they served—Continued. Presidents. Secretaries. Johnson Grant McCulloch Boutwell. Richardson. Bristow. Johnson : McCulloch...... Grant Boutwell Richardson Bristow. Bristow Morrill. Sherman. Hayes Bristow Grant... Morrill Sherman. Hayes Windom. Garfield .. Windom. Arthur .. Folger. • Gresham. McCulloch. Manning. Cleveland Sherman Hayes Sherman... Sherman Windom. Garfield Arthur. .Windom. Folger. Folger ^... Folger Gresham. McCulloch. . Cleveland....... Manning. Manning Manning Manning Fairchild. Windom. Harrison.. Cleveland Fairchild Windom. Harrison Windom Windom Windom Foster. Windom Foster. Cleveland Carlisle. Harrison Foster -. Foster Foster . CarUsle. Cleveland Carlisle McKinley....... Gage. From— July 11,13,65 ToMay 4,1875 Edmund Cooper, Tennessee. Dec. 2,1867 William A. Richardson, Massachusetts. Mar. 20,1869 FrederickA. Sawyer, South Carolina.. Mar. 8,1873 May 31,1868 Mar. 17,1873 June 11,1874 Charles F. Conant, New Hampshire... July Apr. John F. Hartley, Missouri . Curtis F. Burnam, Kentucky Henry F. French, Massachusetts 1,1874 3,1877 . Mar. 4,1875 June| 20,1876 Aug. .12,1876 Mar. 9,1885 ., Richard C. McCormick, Arizona .. Apr. 3,1877 John B, Hawlfty, Tllinnis .. Dec. 9,1877 J. Kendrick Upton, New Hampshire:. Apr. 10,1880 Dec. 8,1877 Mar. 31,1880 Dec. 31,1881 John C. New, Indiana Charles E. Coon, New York A-pT. 16,1884 Nov. 10,1885 Feb. 28,1882 Apr. 17,1884 ' Charles. S. Fairchild, New York ,. Mar. 14,1885 Apr. 1,1887 William E. Smith, New York Nov. 10,1885 June 30,1886 Hugh S. Thompson, South Carolina... July 12,1886 Mar, 12,1889 Isaac N. Maynard, New York Apr. George H. Tichner, Illinois George T. Batchelder, New York A. B. Nettleton, Minne»sota. , Apr. 1,1889 July 20,1890 Apr. 1,18893 Oct. 31,1890 July 22,1890 Dec. 1,1892 0 . L. Spaulding, Michigan July 23,1890 June 30,1893 Apr. 27,1891 _ . Nov. 22,1892 Dec. 23,1892 Oct. 31,1892 Mar. 3,1893 Apr. 3,1893 Lorenzo Crounse, Nebraska John .TT. Gftfl.r, Town, Genio M. Lambertson, Nebraska Charles S. Hamlin., Massachusetts •Act July 11,1890, provides for an additional Assistant Secretary. Term of service. Assistant Secretaries. 6,1887 Mar. rll, 1889 Apr. 12,1893 Apr. 7,1897 XXL ASSISTANT SECRETARIES OF THE TREASURY. Assistant Secretaries of the Treasury and Presidents and Secretaries under whom they sei'ved—Continued. Presidents. ' Secretaries. Cleveland McKinley...:.:. Cleveland McKinley Carlisle Gage. Carlisle Gage. Gage Gage Roosevelt Gage. Shaw. McKinley....... Gage Gage.. Roosevelt Gage. • Shaw. McKinley Gage Roosevelt Gage. Shaw. Shaw Shaw Shaw. .• Cortelyou. MacVeagh. Taft....." Roosevelt Shaw Cortelyou. Shaw Cortelyou Cortelyou Taft MacVeagh. MacVeagh... MacVeagh MacVeagh Wilson. McAdoo. MacVeagh Taft MacVeagh Wilson McAdoo. MacVeagh Taft .. Wilson McAdoo. McAdoo..... McAdoo McAdoo McAdoo . McAdoo McAdoo McAdoo Glass. McAdoo Glass. Houston. Harding Mellon. Wilson McAdoo Glass. Houston. Assistant Secretaries. Term of service. Wilham E. Curtis New York From— Apr. 13,1893 To— Mar. 31,1897 Scott Wike, Illinois July 1,1893 May Wilham B. Howell, New J e r s e y . . . . : . . Apr. x\pr. Oliver L. Spaulding, Michigan 7,1897 7,1897 Mar. 10,1899 Mar. 4,1903 Frank A. Vanderlip, Illinois Horace A. Taylor, Wisconsin " . Milton E. Ailes, Ohio 4,1897 June 1,1897 Mar. 13,1899 Mar. June Mar. Apr. 15,1903 6,1901 5,1901 3,1906 Robert B. Armstrong, Iowa Charles H. Keep, New York James B. Reynolds, Massachusetts Mar. 5,1903 Mar. 5,1905 May 27,1903 Jan. 21,1907 Mar. 5,1905 Nov. 1,1909 John H. Edwards, Ohio..' July 1,1906 Mar. 15,1908 Arthur F. Statter, Oregon Beekman Winthrop, New York Louis A. Coolidge, Massachusetts Jan. 22,1907 Apr. 23,1907 Mar. 17,1908 Feb. 28,1907 Mar.' 6,1909 Apr. 10,1909 Charles D. Norton, Ilhnois Charles D. Hillis, New York James F. Curtis, Massachusetts Apr. 5,1909 Apr. 19,1909 Nov. 27,1909 June 8,1910 Apr. 3,1911 July 31,1913 A. Piatt Andrew, Massachusetts Robert 0 . Bailey, T\1,inoi.s June 8,1910 Apr. 4,1911 July Mar. Sherman P. Allen Vermont July 20,1912 Sept. 30,1913 John Skelton Wilhams, Virginia Charles S. Hamhn, Massachusetts Byron R. Newton, New York Wilham P. Malburn, Colorado Andrew J. Peters, Massachusetts Oscar T. Crosby, Virginia Leo S. Rowe, Pennsylvania Mar. Aug. Oct. Mar. Aug. Apr. June Feb. Aug. Oct. Jan. Mar. Aug. Nov. James H, Moyle, U t a h . . Oct. i .. Russell C. Leffingwell, New York • 24,1913 1,1913 1,1913 24,1914 17,1914 17,1917 22,1917 3,1912 3,1913 2,1914 9,1914 1,1917 26,1917 15,1917 28,1918 20,1919 5,19174 Aug. 26,1921 Oct. 30,1917 July 5,1920 , »Act Oct. 6,1917, provided for two additional Assistant Secretaries for duration of war and six months after. XXII ASSISTANT SECRETARIES OF T H E TREASURY. Assistant Secretaries of the Treasury and Presidents and Secretaries under vjhom they served—Continued. Presidents. Wilson Harding Wilson Harding Wilson Harding Wilson Harding : Secretaries. McAdoo Glass. McAdoo Glass .Houston. Glass Houston. Glass Houston. Houston Mellon. Houston • MeUon. Houston Mellon. Houston Mellon.; Mellon.... Mellon Assistant Secretaries. Thonaas B. Love, Texas From— .Dec. 15,1917 To— Jan. 31,1919" Albert Rathbone, New York Sept. 4,1918 June 30,1920= Jouett Shouse, Kansas... Mar. 5,1919 Nov. 15,1920' N o r m a n H , D a v i s , TftnnpisseP. Nov. 21,1919 June 14,1920 Nicholas Kelley,- New York. June 15,1920 Apr. 14,1921 S. Parker Gilbert, jr.. New Jersey 6 July 6,1920 Jiine 30,1921 Ewing Laporte, Missouri Dec; 4,1920 May 31,1921 Angus W. McLean, North Carolina Dec. 4,1920 Mar. Mar. 16,1921' Ehot Wadsworth, Massachusetts Edward Clifford, Ilhnois . . . . . May 4,1921 Dec. 23,1921 Elmer Dover, Washington > Became Undersecretary July 1,1921. Term of service. 4,1921 ANNUAL REPORT ON THE FINANCES TREASURY DEPARTMENT, Washington^ November 28^ 1921. SIR : I have the honor to make the following report: From the point of view of the Treasury the past year has been marked by important developments. I t has been, first of all, a period of pronounced economy and retrenchment in Government expenditure. The war brought with it a new scale of expenditure, and for some time after actual hostilities ceased the Treasury had heavy obligations to meet on account of the war. Expenditures in the fiscal year ended June 30, 1920, amounted to almost $6,500,000,000,-while for the fiscal year ended June 30,1921, ordinary expenditures, including sinking fund and miscellaneous fixed-debt charges, still ran over $5,500,000,000. This cash outgo it has been the constant endeavor of the administration to reduce, and it now expects to hold expenditures on the same basis for the fiscal year 1922 down to $4,000,000,000, or thereabouts, a reduction of about $1,500,000,000 below the year 1921. I n some measure this reduction reflects the liquidation of war liabilities, but to an important extent it represents a reduction in the cost of Governihent. From either aspect it means a reduction in the tax burden. On June 10, 1921, the act to create a Budget system became a law, and by the end of the fiscal year 1921 the Bureau of the Budget was organized and established. I t has already proved to be a most effective arm of the Executive to enforce the determination to bring about a reduction in Government expenditures. Through the Bureau of the Budget and the heads of the several departments and establishments it has been possible to exert continued pressure for economies in administration, and by this means as well as through the coordination of Government activities under the general supervision of the Bureau of the Budget important savings have been accomplished. For the first time in its history the Government^ has an agency equipped to put pressure upon the spending offices to reduce expenditures, and the results already accomplished constitute one of the most encouraging developments of the year. Another effective force which has made for continued reduction in Government expenditures has been the shrinkage in current revenues, coupled with the necessity of a thoroughgoing revision of the internal-tax laws so as to reduce the burden of taxation on the com70073--FI1921—1 ^ 1 2 . REPORT ON T H E FINANCES. munity. At the outset it appeared from the estimates that additional taxes might be necessary to supply deficiencies in the revenues unless there were striking cuts in expenditure. The determined efforts for economy, however, have resulted in cutting expenditures for the current fiscal year over $400,000,000 below the amount originally estimated to be necessary by the spending departments, and this in turn has made it possible to proceed with the revision of internal taxes on the basis of a substantial cut in revenues. The result is that the revenue act of 1921, approved November 23, 1921, has made a substantial reduction in the tax burden, running over $800,000,000 for the fiscal year 1923, as compared with the old law, and at the same time has provided for the repeal or reduction of several of the most vexatious and burdensome taxes and for the simplification of the taxes that remain in force. During the past year, furthermore, the Treasury has made substantial progress in the refunding of the short-dated debt and has already succeeded in bringing about a better distribution of the early maturities of the debt, which should greatly facilitate the refunding operations incident to the maturity of the Victory Liberty loan. The Treasury announced in April that it would be the policy to vary its issues of Treasury certificates from time to time with issues of short-term notes in moderate amounts, and two issues of Treasury notes have already been successfully floated, on June 15 and September 15, 1921. In consequence of these operations it has been possible to refund about $700,000,000 of the short-dat^d debt into later, maturities, to reduce the Victory notes outstanding to about $3,600,000,000, and at the same time to bring the outstanding amount of Treasury certificates down to about $2,300,000,000. With this better distribution of the debt and with lower rates for money, the market prices of outstanding Liberty bonds and Victory notes have shown marked improvement during the last six months. Victory notes have touched p a r and arre consistently quoted at about par, while the several issues of Liberty bonds are now selling at prices ranging from about 95 to about 97, or on an average about 10 points higher than a year ago. Treasury certificates of indebtedness which a year ago the Government was selling at interest rates of »5f and 6 per cent, have recently been sold for 4^ and 4^ per cent, and all issues outstanding are quoted at par or above. These developments in respect to the public debt are most encouraging and indicate that the Treasuiy should be able to proceed in an orderly way and without undue disturbance to business with the great refunding operations that will be needed in connection with Victory Liberty loan and other short-dated debt outstanding. The maturity within the next 18 months of almost $6,750,000,000 of short-dated debt still SECRETARY OF THE TREASURY. 3 dominates the situation, however, and make's it imperatiA^e that the Government pursue a policy of the utmost economy and avoid new undertakings that would throw additional burdens on the Treasury and embarrass the refunding operations. The 1918 series of warsavings certificates matures on January 1, 1923, and the. Victory Liberty loan on May 20, 1923. Treasury certificates of various series, aggregating about $2,300,000,000, will also mature within the year. The greater part of this debt will have to be refunded, and the orderly conduct of the refunding operations will require the Treasury's best attention for some time to come. T H E R E F U N D I N G OF T H E SHORT-DATED DEBT. At the outset of the present administration of the Treasury steps were taken toward making the short-dated debt more manageable. Earlier plans for the gradual retirement of loan and tax certificates had been disarranged because of continued heavy current expenditures, particularly on accoimt of the Army and Navy and the railroads. The Treasury, therefore, announced the policy of issuing from time to time short-term notes in moderate amounts with maturities of from three to five years, in order to distribute the shortdated debt over a series of years ranging from 1923 to 1928. The neAv policy was first outlined in the following extract from the letter of the Secretary of the Treasury to the chairman of the Committee on Ways and Means of the House of Eepresentatives, on April 30, 1921: Tbe estiniates of receipts and expenditures for both 1921 and 1922 show clearly that while this Government has definitely balanced its budget, the surplus of current receipts over current expenditures will not quite'provide for wliat niay.be termed the lixed public debt redemptions, and that unless expenditures are sharply reduced there will be practically no funds available in these years for the retirement of the floating debt represented by loan and tax certificates outstandhlg. The estimated current surj^lus in both 1921 and 1922 will be absorbed (1) by current redemptions of war savings securities, redeemable substantially on demand; (2) by purchases fs)v the cumulative sinking fund; (3) by acceptance of Eiberty bonds and Victory notes for estate taxes; and (4) by miscellaneous otber debt retirements which must be made each year in order to comply with existing law" or with the terras of outstanding securities. This means that the Treasury's earlier expectations as. to the retirement of the floating debt have been upset by the continuance of unexpectedly heavy current expenditures during the past 12 months, particularly on account of the Army and Navy and the railroads, and that the Government can not now expect to retire any material portion of the two and one-half billions of floating debt now outstanding during the fiscal years 1921 and 1922 out of the current revenues. It means also that the country can not look to any plan for funding the floating debt to reduce the burden of internal taxes during the next two years. Substantial cuts in current expenditures offer the only hope of effective relief from, the tax burden. 4 REPORT ON THE FINANCES. Within the next two years, or thereabouts, there will mature about seven and one-half billions of short-dated debt (including the outstanding floating debt), and it is to the gradual retirement of this debt that the bulk of the current surplus is necessarily applied, in large part through the miscellaneous debt retirements described in the preceding paragraph. Substantial progress has already been made in the retirement of the short-dated debt. Statement E, for example, shows that the short-dated debt aggregated $7,578,954,141.89 on March 31, 1921, as against $9,248,188,921.12 on August 31, 1919, when the war debt was at its peak, a reduction of about one and two-thirds billions in the 19 months' period. This reduction was due in large part to the reduced balance in the general fund and the application of receipts from war salvage, and only in small measure io surplus tax receipts. In view of its early maturity, the Treasury must regard the short-dated debt as a whole, and within the next two years may expect to reduce it by perhaps one billion dollars through the continued operation of the sinking fund and the miscellaneous annual debt retirements. The remainder of this short-dated debt, amounting to over six billions, will have to be refunded. It will therefore be the Treasury's pol icy to vary its monthly offerings of Ti'easury certificates of indebtedness from time to time when market conditions are favorable with issues of short-term notes in moderate amounts with maturities of from three to five years, with a view to the gradual distribution of the short-dated debt through successive issues of notes in convenient maturities extending over the period from 1923 to 1928, when the third Liberty loan matures. Treasury certificate offerings will continue to be made from time to time as in the past, in order to meet the Treasury's current requirements. This program will make the short-dated debt more manageable and facilitate the refunding operations which will be necessary in connection with the maturity of the Victory Liberty loan. The first offering of Treasury notes was made on June 15, 1921, coincident with an offering of Treasury certificates, and met with a hearty response, The notes were three-year 5f per cent notes, designated Series A-1924, and $311,191,600 face amount was allotted. The notes-proved immediately attractive to investors, and ever since the closing of the subscription books have sold at a premium. With the program thus successfully launched the Treasury was able on September 15, 1921, to make a second off'ering of short-term notes at a lower rate in connection with the offering of Treasury certificates on that date. The notes were dated September 15, 1921, designated Series B-1924, with maturity of three years, and bore interest at the rate of 6^ per cent. This offering was promptly oversubscribed and allotments were made in the amount of $390,706,100. The total Treasury notes outstanding now amount to $701,897,700, and with the proceeds of sale the Treasury has already been able to effect a material improvement 4n the distribution of the short-dated debt. The Victory Liberty loan maturity has been substantially reduced and the outstanding loan and tax certificates are at the lowest figure in several years. The changes in the Government's floating debt (loan and tax certificates unmatured) are shown in the following table, which gives the volume of unmatured loan and tax certificates outstanding at SECRETARY OF THE TREASURY. various dates since August, 1919, when the peak of the public debt was reached: Loan and tax certificates outstanding. Date. Aug. 31, 1919 June 30, 1920. June .30, 1921. Oct. 31, 1921. $3,938,295,000 2,485,550,500 2,4.50,601,000 1,932,218,000 The growing popularity of Treasury certificates of indebtedness among the investing public has been a matter of gratification to the Treasury. Since March of this year the certificates of all issues outstanding have been quoted at par or a premimn. Quotations appear regularly in the leading daily newspapers and financial periodicals, and Treasury certificates enjoy a broad and active investment market. Partial allotments have been necessary in the case of every issue during the past year. At the same time the easing in market rates for money has made it possible for the Treasury to reduce the rate of interest paid on these securities approximately I J per cent. During the latter half of 1920 the prevailing rate was 5 | per cent for sixmonths certificates and 6 per cent for one-year certificates. The decline in rates has been gradual since December and the latest issues, which were offered on November 1, 1921, bore 4^1 per cent for fivemonths certificates and 4 | per cent for lOJ-months' certificates. The success with which the Treasury has met in its efforts to secure the distribution of certificates among investors and to avoid lodging them in the banks is shown in the following table, which gives for various dates the amount of tax and loan certificates held by reporting member banks of the Federal Eeserve System and by the 12 Federal reserve banks, together with the percentages of these figures to the total amount outstanding. The reporting member banks number something over 800, and are believed to control about 40 per cent of the commercial banking resources of the country and to have subscribed in the first instance to nearly 75 per cent of the outstanding issues of Treasury certificates: Date. Loan a n d t a x certificates outstanding (amount). L o a n a n d t a x certificates held b y reporting m e m b e r b a n k s . Amount.1 J u n e ."^O 1919 J u n e 30, 1920 J u n e 30, 1921 Oct. 31,1921 $3,263,766,000 2,485,550,500 2,450,601,000 1,932,218,000 $916,739,000 419,954,000 221,025,000 2 93,742,000 Per cent of a m o u n t outstanding. 28.1 16.9 8.9 4.8 L o a n a n d t a x certificates pledged w i t h Federal reserve b a n k s . Amount.i $367,941,000 38,502,000 17,956,000 Per cent of a m o u n t outstanding. 14.8 1.8 0.9 1 These figures are available for a given day each week and are taken for the dates nearest those given at the left of the table. 2 Oct. 26, 1921. 6 REPORT ON T H E FINANCES. The percentage of outstanding Treasury certificates held by reporting member banks has declined from 28 on June 30,1919, to 5 on October 31, 1921, and at the present time less than 1 per cent of the outstanding certificates are pledged Avith the Federal reserve- banks to secure loans as compared with 15 per cent on June 30, 1920. From October 31, 1920, to October 31, 1921, there were seven issues of loan certificates aggregating $1,381,850,000, and eight issues of tax certificates aggregating $1,810,001,500, making a total'of fifteen issues aggregating $3,191,851,500. During the same period total redemptions of tax and loan certificates have aggregated $3,635,017,500. The course of certificate operations for the period under review is shown best by reference to the circular letters and public statements issued from time to time during the year concerning the Treasury certificate program. These letters and statements appear as exhibits to this report, and a detailed discussion of the operations is given on pages 65 to 69 in the article entitled *' Treasury Notes and Certificates of Indebtedness." REVENUE REVISION. One of the most important developments of the year, both from the point of view of the business and industry of the coimtry and from the point of view of the administration of the Treasury, has been the revision of the internal tax laws, which has engaged the attention of the Treasury and of Congress almost continuously since the beginning of the present administration. The result has been a revision of taxes which not only grants an important measure of relief to business but also accomplishes a substantial reduction in the total tax burden for all classes of the community. The earlier plans, submitted by the Treasury were founded upon estimated expenditures of about $4,500,000,000 for the fiscal year 1922 and about $4,000,000,000 for the fiscal year 1923, but as time went on and the results of the executive pressure to reduce expenditures became apparent it proved possible to proceed with the revision on a basis of about $4,000,000,000 of expenditures for the present fiscal year and about $3,500,000,000 for the fiscal year 1923. This change in the revenue requirements has maide it possible to dismiss from consideration some of the additional taxes suggested by the Treasury at the outset, but has not affected the main outlines of the Treasury's recommendations, particularly as regards the income surtaxes and profits taxes. On April 30, 1921, in response to the request of the chairman of the Committee on Ways and Means of the House of Representatives, the Secretary of the Treasury submitted to the Congress revised SECRETARY OF THE TREASURY. 7 estimates of receipts and expenditures for the fiscal years 1921 and 1922, and indicated in connection therewith the revenues necessary for the fiscal years 1922 and 1923 in order to meet the Government's current, requirements. A copy of this letter appears in this report as Exhibit 68, page 349. . The estimates at that time indicated expenditures for the fiscal year 1921 of $5,602,024,861, including sinking fund and miscellaneous debt charges, and for the fiscal year 1922 expenditures of $4,565,877,033, against ordinary receipts for the fiscal year 1921. of $5,487,067,000, and for the fiscal year 1922 of $4,547,643,000. These estimates showed that current receipts during the two fiscal years 1921 and 1922 would not quite provide on this basis for the total estimated expenditures, including current redemptions of warsaving securities, purchases for the cumulative sinking fund, the acceptance of Liberty bonds and Victory notes for estate taxes, and miscellaneous other debt redemptions required to be made out of receipts specially earmarked for the purpose. The estimates thus submitted, which were based on the latest reports received from the spending departments and establishments of the Government, showed that unless there were striking cuts in current expenditure, there could be no important reduction in internal taxes, and that the most substantial relief from the tax burden would have to come from the readjustment of internal taxes and the revision or repeal of those taxes which had become unproductive and were so artificial and burdensome as to defeat their own purpose. On this basis the Secretary made the following principal suggestions with regard to the revision of the internal tax laws: 1. Repeal the excess-profits tax, and make good the loss of revenue by means of a modified tax on corporate profits or a flat additional income tax upon corporations, and the repeal of the existing $2,000 exemption applicable to cor-porations. 2. Readjust the income-tax rates to a maximum combined normal tax and surtax of 40 per cent for the taxable year 1921, and of about 33 per cent thereafter, with a view to producing aggregate revenues substantially equivalent to ' the estimated receipts from the income tax under ^existing law. 3. Retain the miscellaneous specific sales taxes and excise taxes, including the transportation tax, the tobacco taxes, the tax on admissions, and the capital-stock tax, but repeal the minor "nuisance" taxes, such as the taxes on" fountain drinks and the miscellaneous taxes levied under section 904 of the revenue act, which are difficult to enforce, relatively unproductive, and unnecessarily vexatious. The repeal of these miscellaneous special taxes would, it was estimated, result in a loss of about $50,000,000 in revenue.' 4. Impose sufficient new or additional taxes of wide application, such as increased stamp taxes or a license tax on the use of automobiles, to bring the total revenues from internal taxes after making the changes above suggested to about $4,000,000,000 in the fiscal years 1922 and 1923. It was pointed out that the only way to escape these additional internal taxes, to an aggregate amount 8 REPORT ON THE FINANCES. of between $250,000,000 and $350,000,000, would be to make immediate cuts in that amount in current expenditures. In the event that this should prove impossible, it was stated that it might be feasible .to provide perhaps as much as $100,000,000 or $150,000,000 of the necessary revenue from new duties on staple articles of import, and the balance by taking more effective steps to realize on biack taxes, surplus war supplies, and other salvageable assets of the Government. 5. Adopt necessary administrative amendments to the revenue act in order to simplify its administration and make it possible, among other things, for the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury and the consent of the taxpayer, to make final determination and settlement of tax cases. In this connection it was suggested it would be well, in the interest of fairness and in order to simplify the administrative problem, to provide, under proper safeguards, for carrying forward net losses of one year as a deduction from the income of succeeding years. On August 4, 1921, before the Committee on Ways and Means of the House of Eepresentatives, the Secretary made a statement which further developed the Treasury's suggestions with respect to the revision of the internal tax laws (-a copy of which is included herein as Exhibits 69 and 70, pp. 362 and 363),.and at the same time presented revised estimates of the receipts and expenditures of the Government for the fiscal year 1922, estimates of the yield of internal revenue and customs under the existing law and the suggested revised law for the fiscal years 1922 and 1923, and a brief comment on the principal changes suggested for consideration in connection with the revision of the internal tax laws. These revised estimates indicated total current expenditures for the fiscal year 1922 of about $4,554,000,000, including sinking fund and miscellaneous public debt redemptions required by law. I t was estimated that miscellaneous, revenues during the year from salvage and sources other than taxation would amount to about $350,000,000, leaving $4,200,000,000, on this basis, to be provided from customs and internal revenue. These figures showed that if additional taxes were to be avoided there must be additional effective cuts in ordinary expenditures and that even with substantial cuts the internal revenue yield for the year 1922 could not well be permitted to fall below $3,570,000,000, .the amount of the estimated yield under existing law. I n this connection the attention of Congress was called to the fact that in the fiscal year 1923 the Victor}^ Liberty loan and the 1918 series of war savings certificates would mature, and that with these large maturities to meet, the Treasury would need some margin of current revenues over current expenditures for the year in order that the refunding operations necessary during the year should not be complicated by additional borrowings to meet current expenditures. SECRETARY OF THE TREASURY. 9 This statement of the probable position of the Treasury Avas followed by a determined effort to accomplish reductions in the estimated expenditures of the Government and by a careful revision of the estimates of the spending departments and establishments, under the leadership of the President. As a result the 'Secretary of the Treasury was able to submit, on August 10, 1921, in a letter to the chairman of the Committee on Ways and Means (a copy of which appears'herein as Exhibit 71, p. 369), figures as to the reductions in the estimated expenditures of the Government which the administration had determined to make for the fiscal year 1922. • These figures were agreed upon at a conference on August 9, 1921, between the President, the Secretary of the Treasury, and members of the Committee on Ways and Means, and provided for a reduction in the ordinary expenditures of the Government for the fiscal year 1922 of $350,000,000 below the revised estimates presented by the Treasury on August 4, and a reduction of $170,000,000 in the estimated net public debt expenditures, an aggregate reduction in expenditures of $520,000,000, leaving an estimated total expenditure of about $4,034,000,000 for the fiscal year 1922. This reduction in the estimates of ordinary expenditures was made on the understanding that every branch of the administration, with the assistance of the Director of the Bureau of the Budget, would put forth its utmost efforts to assure economy in all Government activities and that every effort would be made to increase realization on salvageable property remaining from the war. I n view of the reductions in expenditures thus pledged to be made during the fiscal year i922, and with the expectation of increased receipts from salvage and other sources than internal revenue during the fiscal year 1922, the Secretary recommended that the internal revenue laws be revised so as to produce a total of $3,000,000,000 of internal revenue for the calendar year 1922, and suggested that this revision should involve (1) the repeal of the excess-profits tax, effective. January 1, 1921, with a 2J per cent flat tax on corporation incomes as a partial substitute; (2) the repeal of the higher surtax brackets to a maximum of 32 per cent, effective January 1, 1921, and .a maximum of 25 per cent, effective January 1, 1922; (3) the reduction of transportation tax by one-half, effective January 1, 1922, and its repeal, effective Januaiy 1,1923; (4) the repeal or modification of certain miscellaneous taxes imposed under sections 630 and 904 of the revenue act of 1918; and (5) sufficient readjustments in miscellaneous taxes to assure aggregate internal revenue for the calendar year of $3,000,000,000. I t was estimated that the additional revenue necessary for the fiscal year 1922 would be made up by the overlapping of receipts collected under existing law and to some extent by collections of back taxes. 10 REPORT ON T H E FINANCES, The suggested rcAdsion contemplated further reductions in taxation for the calendar year 1923 through the complete repeal of • the transportation tax, effective January 1, 1923, and the reduction of the surtaxes to a maximum of 25 per cent, effective January 1, 1922. The significance of the revised program 'for the reduction of Government expenditures-and the revision of internal taxes on tlie new basis was emphasized by a public statement issued from the White House, under date of August 13, 1921, a copy of which appears herein as Exhibit 72, page 372. Real progress along the lines of this program has been made by the revenue act of 1921,"as finally enacted and approved November 23, 1921. The surtaxes have been reduced to a maximum of 50 per cent, effective January 1, 1922, and at the same tinie have been readjusted in the lower brackets. The excess-profits tax has been repealed, effective at the close of the calendar year 1921, and a flat additional tax of 2^ per cent on the net income of corporations has been substituted, with the repeal of the $2,000 exemption for corporations with incomes of over $25,000. The new law also limits the tax upon capital gains and embodies administrative provisions which permit business reorganizations and readjustments to go forward without premature taxation of paper profits or deduction for unreal losses. I t allows net losses sustained by trade or business in one year to be deducted from the profits of the two succeeding years, and authorizes final settlement of tax claims and assessments. I t contains many other provisions which are designed to simplify the law and improve its administration. Taken all in all, the effect of these changes is to give substantial relief to business and industry and to restore in some measure the freedom of business transactions. I t is estimated, moreover, that the result is a net reduction of the tax burden on account of income and profits taxes alone of about $410,000,000 a year. Eeductions in other taxes, amounting to about $425,000,000, are also made by the revenue act of 1921. The transportation and insurance taxes imposed by Title V of the old law, the nuisance tax on toilet and medicinal articles, and the .specific sales taxes on musical instruments, sporting goods, motion-picture films,. articles made of fur, toilet soaps, and other articles, are repealed, while the taxes on soft drinks, candy, so-called luxuries and works ,of art are markedly reduced or restricted. On this basis it is estimated the new law reduces the aggregate tax burden by about $835,000,000 for the first full fiscal year of its operation, the year 1923. The reduction in internal-revenue collections is shown by the following comparative statement of actual collections for the fiscal year 11 SECRETARY OF THE TREASURY. 1921 under the old law and estimated collections for the fiscal years 1922 and 1923 under the revised law: Fiscal year— Income and profits taxes MisceUaneous internal-revenue taxes Total 1921 1922 $3,205,000,000 1,390,000,000 $2,110,000,000 1,104,500,000 $1,715,000,000 896,000,000 4,595,000,000 3,214,500,000 2,611,000,000 1923 TAXATION AND R E V E N U E . The sudden and great increase in the governmental expenditures, due to the World War, made it necessary that the revenues raised by taxation should be increased as quickly and to as great an extent as possible, and the methods adopted for this purpose were necessarily of an emergency character. Now that the war has ended and sufficient time has elapsed to enable us to forecast with reasonable accuracy the probable needs of the Government in the way of revenue for some years to come, it is of primary importance that careful consideration be given to the permanent methods of taxation to be adopted, so,that our revenue needs may be met with as little interference as possible with the prosperity and the well-being of the people of the whole country. As already shown much has been accomplished in the passage of the revenue act of 1921, but our system of taxation still requires careful and thoughtful consideration. I n order that we may realize the great change which has taken place due to the World War, it is well to contrast the revenues and the total ordinary disbursements of the Government before the war with the revenues and disbursements since the war. Considering first the sources from which in the past the revenues of the Government have come, we find that, prior to the Civil War, the ordinary receipts were derived almost entirely from customs, supplemented by small miscellaneous revenues. The increased expenditures caused by the Civil W a r led to the imposition of internal revenue taxes, principally upon liquors, tobacco, incomes, and certain manufactures and products, with the result that in the year 1866, which marks the highest point of taxation during the Civil War period, the total ordinary, receipts were $557,000,000, of which $179,000,000 was customs receipts and $378,000,000 internal-revenue and miscellaneous receipts. From 1867 on, for many years, internal-revenue receipts showed a steady decline, and the Government came again to depend for its revenues principally upon customs receipts. Beginning with the 12 REPORT ON THE FINANCES. year 1894, the ordinary receipts were divided, speaking in a very general way, pretty nearly equally as between customs and internalrevenue receipts; and this continued up until 1911, when the revenues from the excise tax on corporations, under the act of 1909^ definitely put the receipts from internal revenue slightly ahead of the receipts from customs, the figures for that 3^ear being $314,000,000 customs receipts and $322,000,000 internal-revenue receipts. The following table shows in comparative form the sources of revenue and the total ordinary receipts and disbursements for the years 1913, 1914, and 1915, which may fairl}^ be taken as average prewar years, and for the afterwar years, 1920, 1921, 1922, and 1923. the latter two estimated. Statement shoioing customs receipts by tvarrant, internal-revenue collections, and total ordinary receipts and disbursements {on the basis of daily Treasury statements) for the fiscal years .1.9.13 to 19.1.5 and 1920 to 1923, inclusive. [Fiscal years 1922 and 1923 estimated.] Customs. I n t e r n a l - r e v e n u e collections. Receipts.! Income and profits t a x and corporation capital stock.3 Fiscal year. im.% 1914 1915 1920 1921 1922 1923 Tobacco.2 Distilled spirits a n d fermented liquor.2 .?318, 891,395 S76,789,424 $230,146,332 292,320,014 79,986.639 226,179,689 209, 786, 672 79, 957; 373 223,948,646 323,536,559 308, 025,102 275.000,000 330; 000,000 Transporta. t i o n , teleg r a p h , telep h o n e , etc. Special sales taxes—manufactures a n d products, E s t a t e t a x . sales, c o n s u m ers or dealers tax, and beverages, soft drinks, etc. ?35,006,299 71,381,274 SO, 201,75S 295,809,355 •139,871,149 4,049,956,424 $289,348,087 $103,635,563 255,219,385 82,623,428 3,309,663,326 301,512,413 154,043,260 250,000, 000 60, 000, 000 2,185,000,000 162,000,000 150,000,000 250, 000,000 60.000,000 1, 790,000,000 6 27,000,000 150,000,000 I n t e r n a l - r e v e n u e collections—Continued. $318,918,057 282,222,065 224,030,000 187; 580.000 Total ordinary. Fiscalyear. Stamps.* 1913 1914 1915 823,455,965 1920 1921 1922 1923 87,687,246 75,664,840 58,500,000 46,500,000 Admissions and dues. Miscellaneous. $2,482,397 2,461,289 8,117,2S0 $81,918,556 95,890,650 95,000,000 80,000,000 40,4.35,811 38,161,394 29,970,000 19 920 000 Total internal revenue.5 Receipts. $344,424,453 380,OOS, 893 415,681,023 $723,782,921 734,343, 700 695,663,190 $725,440,950 735, 386,190 760,714,614 5,407,580,251 6,694,565,389 4,595,000,765 5,624,932,961 3.214. .500.000 3,968,453,663 2 fill 000 000 3,345,182,750 76,482,077,241 7 5,538,040,689 73,992,922,366 73,512,754,727 Disbursements. 1 Duties and tonnage covered into the Treasury by warrants.' 2 Including special taxes relating to manufacture and sale. « 3 Receipts for fiscal year 1913 and $10,071,077.22 for 1914 are "excise tax on corporations." < Including sales by postmasters of documentary stamps as follows: Fiscal year 1920, $24,437,8'J.75, and 1921, $20,880,868.86. 3 Based on collections of internal-revenue oflicers and not on warrants. 8 Telegraph and telephone. 7 Includ33 public dabt exp3nditur33 chargeable against ordinary receipts SECRETARY OF THE TREASURY. 13 We must, therefore, face the fact that the ordinary disbursements of the Government, by reason of the war, increased from approximately $700,000,000 per year for the prewar years to over $6,000,000,000 for the year 1920, and while we have been able to reduce the expenditures for the fiscal year 1923, as now estimated, to approximately $3,500,000,000, for many years to come Government expenditures must continue at an extraordinarily high rate. The increase in population, the enlargement of Government functions, the addition of new agencies, the interest on the public debt, and the expenditures indispensable in connection with the disabled veterans of the war make it manifest that the ordinary expenses of the Government for some years to come will probably be several times those for prewar years. I t is, then, of vital importance that adjustments be made in our scheme of taxation whereby the burden will not fall unduly, either directly or indirectly, upon aii}^ particular class, and at the same time will not seriously interfere with productive industry and the general prosperity of the country. The people of the country should be aroused to the importance of giving serious consideration to this problem, for it is only as they come to understand the real need of the taxes they are called upon to pay, and the evil effects of unwise taxation-^of any attempt to impose an undue burden upon any class—^that" real progress can be made toward a well balanced and equitable system of taxation. The matter is of exceptional importance at this time. I n the past year we have suffered an industrial and business depression that has affected every class of our people and reached into every part of the country. How far-reaching the consequences may be, no one can as yet safely predict. Unemployment in all classes has been very great. If these conditions continue, our present burden of taxation must seriously increase the troubles of our people. The hardship, and suffering resulting from business depression and unemployment inevitably fall most severely not upon those paying high income taxes, but upon the great body of the people of small incomes. Under our form of government there is, and very rightly so, little danger, of any undue burden from the taxes imposed directly upon those of small means, but there is danger of serious hardship and suffering to them because of high prices, unemployment, and high living costs resulting from unjust or unwise tax laws. Our very best thought, therefore, should be directed to seeing that our system of taxation shall interfere to the least possible extent with the retp^n ni the country at least to such normal conditions and reasonable business activity as will prevent hardship to those least able to bear it. There are certain features of our present taxation to which attentic^^hould be directed; principally the high surtaxes, the taxation oTbusiness profits and the estate taxes. 14 REPORT ON THE FINANCES. Surtaxes. The usual argument in favor of high surtaxes is that taxation should be according to " ability to pay." The theory of taxation according to " ability to pay," like all other general statements, has its limitations and its qualifications. In the first place, the tax must be productive, otherwise the whole purpose of the tax is lost. Again, it must not be unreasonable or oppressive, for in that case it will be avoided or evaded and thereby cease to be productive. Again, the tax must not be one the result of Avhich is to interfere with productive industry; it must not dry up the very source out of which revenue is expected to come. . If it does, not only will the tax cease to be productive but it will also result in lessened production, unemployment, arrest of the country's growth and serious injury to the people least able to bear these consequences. That the higher surtax rates are rapidly ceasing to be productive of revenue is apparent from a study of the statistics published h j the Bureau of Internal Kevenue. That these taxes are being evaded or avoided, no one of an}^ experience doubts. I t is usual to put the blame for this upon the so-called tax-exempt securities. There is no doubt that a large and steadily increasing amount of money formerly invested in productive industry is UOAV going into tax-exempt securities. Investors having incomes falling within many bf the higher brackets have found it no longer profitable to continue to place their money in the-same class of business and investments as heretofore, and tax-exempt securities afford a ready method of obtaining an assured income without the risk incident to investment in productive industry. There is no use discussing whether the exemption of State and municipal securities from Federal taxation is wise or unwise, for it is inherent in our system of government and the remedy must be found in a constitutional amendment which good faith requires should be applicable only to future issues of such securities. • The amount of such tax-exempt securities now outstanding is estimated by the Treasury at approximately $10,000,000,000. The exact figures seem difficult to ascertain and much higher estimates are made. The amount of new securities of this character issued during the first eight months of the present year is said to be $800,000,000. Of the total amount of tax-exempt securities now outstanding, approximately $2,500,000,000 have been issued by the United States, or under its authority, including such securities as Federal farmloan bonds. (See Exhibit 76, p. 379 of this report.) While tax-exempt securities afford an easy means to a large class of investors of avoiding payment of the high surtax rates, they con- j SECRETARY OF THE TREASURY. 15 stitute only one of many ways that can be and are availed of to avoid such taxation. Experience teaches us that means of avoiding taxes which are regarded as excessive or unreasonable will always be found, and it would be useless to attempt to catalogue them, for new methods will constantly be developed as long as the tax rates continue so high that persons having money for investment find it unprofitable to continue their investments in productive industry. There are, however, other results floAving directly from these high rates.of "taxation which are still more serious in their consequences to the people of the country. The tremendous development of the resources and of the industries of our country, resulting in our present wealth, has been brought about within a comparatively brief period of time, measured in the life of nations, and has been primarily due to three things: (1) The industry of our people and the opportunity and incentive afforded to everyone, whatever his place, to acquire in a greater or less degree some share or portion for himself of that which we call wealth; (2) the steady accumulation of capital resulting from the industry and the thrift of our people, whereby productive industry in every line on a constantly expanding scale Avas made possible; (3) the very moderate Federal taxation, whereby the free floAv of capital, wherever it was needed, and freedom of legitimate commercial transactions was not interfered with, the natural laws of trade being allowed full play. The result has been a prosperity general throughout the Avhole people of the country, and unexampled elscAvhere. We have a standard of living higher than that prevailing in any other country, and are proud to speak of ourselves as the wealthiest nation in the world. Does anyone belicA^e that if our policy in the past as respects taxation had been for the Government to take away from successful eft'ort one-third, one-half, or three-fourths of the gains resulting therefrom we Avould have accumulated the Avealth Avhich we now possess, or have achieved our present position? Does anyone believe for a moment that without this wealth w^hen drawn into the World War we- could have so quickly put forth the marvelous strength which we did and thereby have enabled the bringing of the war to a Speedy and successful conclusion? NotAvithstanding the tremendous depression now existing in all business and industry, our people look forward Avith absolute faith to the future, confident that these conditions are but temporary, and it is the strength resulting from our accumulated AA'Calth which gives us this confidence. In the past we Avere proud of the opportunities enjoyed by our people because Ave AA'ere free from high taxation, as compared AA^th 16 REPORT ON THE FINANCES. the peoples of Europe, Avho, even before the Avar, Avere struggling under a burden of taxation Avhich in our. Avildest fancy it never occurred to us that Ave would approach. The destruction of incentive. Another serious effect of these high tax rates is the destruction of incentive—the drying up of the activities of individuals in trade operations—with consequent lessening of business transactions, the sloAving doAvn of production, and ultimately a loss of rcA^enue to the GoA^erninent. There is not much incentive to men to take risks in any line of industry Avhen all the risk must be borne by the individual, and, if ultimately success comes, a large part of the gain is taken aAvay by the GoA^ernment in taxes. I n business life, success and profit are not ahvays the result of individual effort; in many cases the result is loss. All great success— especially in new productive enterprise—Avhe.n ultimately gained, is most frequently built upon many previous failures and comes only after a considerable period of time during Avhich there was no profit. So that, .when success comes, the profit or gain to be real must be such as to compensate for these previous failures and losses, and without this incentive there is no inducement to anyone to incur the risks involved. Then, too, in'productive enterprise, the merchant, the manufacturer, the farmer, profits vary from year to year, and periods of lean years folloAv good years. High taxation which seizes upon gains as quickly as realized, taking a large part thereof, and making no allowance for the previous failures and losses Avhich have had to be endured before success came, or for lean years, is utterly destructive of individual incentive. I n speaking of individual incentive, it should be clearly understood that reference is not made only to individuals of large incomes. On the contrary, reward for successful effort must be lield out to those of moderate incomes, because it is upon the younger men of strength and courage and vision that a great deal of the burden must fall in the way of initiating and carrying on the productive industries of the country. Large incomes, and the individuals receiving them, play a very important part, but only a part, in the Avhole general scheme of maintaining and carrying forward the productive industries upon Avhich the prosperity of the country depends. Successful taxation after all rests upon a prosperous people, not any one class, but the people as a whole. SECRETARY OF THE TREASURY. 17 The need for new capital. There are three things which may be noticed as bringing immediately to mind how essential new capital is in order that the country may be prosperous. 1. We have a steadily increasing population, and that means an increased need of everything that enters into human consumption. 2. Our standard of living steadily rises. This is no ncAv thing; it seems always to have been true of every people of whom we know. The luxury of to-day is soon a necessity. To provide for these added needs requires more capital. 3. The waste and loss which goes on all the time must be made good. There is the destruction of property by fire and other casualty. Buildings, machinery, houses, furniture, everything that man makes for his own use, wear out and disappear. Year by year this amounts to a vast sum and must constantly be made good, otherwise the world goes backAvard. The accumulation of this necessary additional capital from year to year can come about only through the savings of the people, and the amount which any individual can save and add to the capital of the Nation, of course, increases progressiA^ely with the amount of his income. The larger the income the larger the possibility of saving, because of the larger margin OA^er reasonable liAdng expenditures. When it is sought to justify very high surtaxes on the ground of ability to pay the tax, we should remember that ability to pay the tax also means ability to save and to add to the needed capital of the country, so that the theory of ability to pay, when carried to such limits, destroys the ability to save, and thereby diminishes the capital available for productive industry. The nation has no wealth other than that OAvned by its citizens. All productive wealth is owned by individuals and managed by them. So, when we speak of the wealth of the country, we are in fact referring to the aggregate wealth of the people of the country. The amount held by each individual does vary, but the. statement is, true from the smallest amount in a child's savings bank to the largest fortune. The idea seems prevalent that in taxing large incomes, only the person receiA^ng the income, and who is to pay the tax, is really concerned. This is a mistake. For' whatever the Government takes, in the Avay of tax, out of any income, Avhich would otherwise be saved and invested, and thereby become a part of the capital and of the, wealth of the nation, affects not so much the individual from Avhom it is taken as it does the whole people of the country, in the direct loss of productive capital. So that in considering the effect 70073—FI 1921 -2 18 REPORT ON T H E FINANCES. of high taxes upon incomes, particularly on very large incomes, it is not so much a question of the effect on the individual who is called upon to pay the tax as it is the effect upon the Avhole community. The man receiving a large income may not himself suffer any hardship because a great part of it is seized and taken for taxes, but the effect upon the community—upon the people of the whole country— is serious indeed. After all, the wealth of the country, upon which all the activities and the prosperity of our people depends, is made up of the private, property of the individual citizens—^^of all the people—and anything that unnecessarily takes away from this accumulated property necessarily injuriously affects the people as a whole. , The diversion of capital. I t must be perfectly clear to anyone who gives serious thought to the subject that the theory that high income taxes put the burden of taxation on the rich and relieve the poor is a fallac}^ Take as an illustration the present housing situation. The capital for building operations has come from people having incomes large enough to provide a surplus for investment. Eeal-estate mortgages Avere always considered a sound investment for this class, and capital usually Avas available at a moderate rate of interest. Since the policy of high surtaxes this class of. loans has largely disappeared. The investors who formerl}^ put their money in such loans UOAA^ find it more profitable to go elscAA^here. The result is that capital has been diA^erted from building operations, there has been a great shortage of houseSy rents have enormously increased, and people of small or moderate means liAdng in rented houses have been compelled to pay greatly increased rents, so that in the end the burden has fallen upon the very class sought to be relieved. Of course, it is not meant that the whole blame for this situation rests upon the diversion of capital due tO' high income taxes. Other factors contributed. But after making allowance for these the fact remains that a veiy substantial part of the difficulty has been brought about b}^ the diA^ersion of capital into other channels, and the situation is mentioned only to bring home in a specific wa}^ hoAv directly the diversion of capital affects the people of small incomes. The consequence of this diversion of capital is at once greatly to increase interest rates upon the capital which productive industry is able to obtain, and this in time means lessened production and increased costs. The less capital there is available the greater the struggle to get it and the higher the price paid therefor, which means, of course, increased cost of production. At the same time the less capital there is available the more production is prevented SECRETARY OF THE TREASURY. 19 or diminished, and lessened production in itself- means increased cost. While everything that increases the cost of production naturally and incAdtably increases the cost to the consumer, yet i t does not seem reasonable to believe that all taxes are necessarily passed to the consumer in the form of increased prices, for naturally there comes a place where the price is such that the consumer can no longer afford to buy, or must buy less, and in the end both the producer and the consumer share in the disastrous consequences of such taxation. The point noAv emphasized is that the evil effects of high surtaxes fall not upon the indiAddual Avhose income is seized and taken, but ultimately almost entirely upon the mass of the people who are thereby depriA'^ed of the benefits Avhich would result from the free floAv of commercial transactions and the use of the additional capital Avhich would be aA^ailable for productive enterprise. Freedom of business transactions essential. The revenue to be obtained by the Government from this class of taxes depends upon transactions in trade and commerce which bring about income available for payment of taxes. I t is highly desirable, in the interest of the production of revenue, that the volume of business transactions giAdng rise to gain shall be as great as possible, and to this end it is essential that the natural laws of trade and commerce and the free flow of business shall not be interfered with or prevented. But the direct effect of these very high taxes is to hinder and prevent business transactions which would otherwise take place. A man may have property which he has held for years and which has greatly increased in value, and he Avduld like to sell it, but if he does a large part of the gain would have to be paid out in taxes. He would rather keep the property-than sell it, pay the tax, and invest what is left in something else. At the same time the party desiring to buy this property, if he obtained it, would improA^e it with buildings. What is the result? The transaction does not take place, and the community loses the advantage which would come in the stimulation that Avould arise from the transactions resulting from the buyer's improvement of the property, and it also loses.the advantage of the seller's putting his money into some other form of investment, Avhich in turn would give rise to business transactions. The same thing on a miich greater scale is true in manufacturing and mercantile lines. Men haA^e built up enterprises to the point where they are highly successful. They would like to take their profit and turn the business over to younger men to carry on. These transactions are highly desirable not only for the parties but for the community. 20 REPORT -ON T H E FINANCES. yet they are absolutely stopped, because if made the seller Avould have to pay in one year a tax on a gain which has been the result of perhaps the better part of a lifetime of effort. And in all such cases the Government gets no tax, whereas if the rates were reasonable the transactions would take place and the Government's revenues would benefit accordingly. The free interchange of property in business transactions is essential to the normal prosperity of the country, and each such transaction has a direct tendency to bring about others pf like character with the result of increasing the amount of gain or income available for taxation; but AA^hen the tax is so high as to act as a deterrent against usual and desirable, business transactions, and the A^^olume of such transactions is thereby lessened, the inevitable result is for the tax to become less and less productive. I t is fpr these reasons that, particularl}^ in the higher brackets, a ^ loAver tax rate will produce more revenue in the long run than excessiA^e rates. So long as the high rate stands in the way.of accomplishing bargains, and sales, the Government receives no t a x ; but at a lov/er rate the transactions proceed and the Government shares in the profits. The injurious effect of high rates on the revenues. The actual effect of the high surtaxes Can readily be seen in the statistics published by the Bureau of Internal Eevenue. The following table shows in comparative form, for the years 1916 to 1919, inclusive, the total number of returns of all classes and the returns of incomes over $300,000; the total net income in the same way, and also the investment income. Table sho'wing decline of taxable incomes over $300,000. N u m b e r of r e t u r n s . N e t income. All classes. 1916 1917 1918 1919. •-.... . . . 437,036 3,472,890 4,425,114 5,332,760 Incomes over .$300,000. 1,296 1,015 627 679 I n c o m e from d i v i d e n d s , interest, a n d i n v e s t m e n t s . All classes. Incomes over $300,000. All classes. $6,298,577,620 13,652,383,207 15,924,639,355 19,859,491,448 $992,972,986 731,372,153 401,107,868 440,011,589 $3,217,348,030 3,785,557,955 3,872,234,935 3,954,553,925 Incomes over $300,000. $706,945,738 616,119,892 344,111,461 314,984,884 The years under consideration, 1916 to 1919, inclusive, were, on the whole, years of unexampled prosperity, and of earnings and profits beyond those ever known before in an^^ like period in the history of the country. Notwithstanding this, and while the total income of all classes increased, at the same time there was a striking decrease in SECRETARY OF TFIE TREASURY. 21 'taxable incomes of $300,000 and over—the drop being from $992,972,98.6 in 1916 to $44.0,011,589 in 1919, The effect of the high surtaxes in the other brackets is apparent from a brief study of the statistics regarding taxable. iuA^estment income. I n the bracket "Incomes of $300,000 and over," the taxable in, vestment income declined from $746,614,591 in 1916 to $328,360,613 in 1919; in the bracket " $100,000 to $300,000," the decline was from $602,853,543 in 1916 to $427,910,905 in 1919; and in the bracket " $60,000 to $100,000," the decline was from $366,614,917 in 1916 to $323,743,874 in 1919. If we take the taxable incom'e from, interest, exclusive of interest on Government obligations, the decline is still more striking, the figures being as follows: Incomes, $300,000 and o v e r : 1916 1917 1918 1919 Incomes, $100,000 to $300,000: 1916 1917 1918 1919——— Incomes, $60,000 to $100,000: 1916 1917 1918 1919 - $165, 733, 900 111, 468,127 74, 610, 507 60, 087, 093 - 158, 870, 428 119, 539, 786 91, 030, 392 91, 467,182 ' -• . —_ .93, 280, 583 75, 375, 484 65, 784, 062 68, 814, 933 The foregoing brackets represent the incomes subject to surtaxes under the revenue act of 1918, respectively, at 63 to 65 per cent. 52 to 63 per cent, and 29 to 48 per cent. ^ To these figures should be added the normal tax of 8 per cent in order to find the total tax obligation. In Adew of these figures, is it not clear that these high surtax rates are rapidly ceasing to be productive 6f revenue to the Government? And is it not equally-clear that their effect has been to divert into improductiA^e channels not merel}- the income on the old investments, but to force a large part of the old investment capital into unproductiA^e channels? Business 2^'^'ofits. The revenue act of 1921 has repealed the excess-profits tax laAv, effective December 31, 1921. While this law was justified as a war measure, its continuance in time of peace, and particularly under 22 REPORT ON T H E FINANCES. present conditions, would have been indefensible. During the warperiod, when every line of industry was running at full capacity and prices and profits were highly inflated, the act served to produce a large revenue for the Government and its inequalities were not so much felt by the taxpayers. Its burden, however, fell very unequally upon the business interests of the country. The higher rates of tax were imposed, generally speaking, upon the small or moderate-sized corporations rather than upon the large ones. Owing to the difficulty of determining the capital actually used to carry on any industry, it was impossible to apply the act without very great hardship in many cases. The administratipn of the act also was extremely difficult, and the depiartment even yet has not been able to disppse of all the cases arising under the law for the year 1917, the first year of its operation. The repeal of the excess-profits tax has made necessary a very considerable increase in the flat tax on net corporate income, the rate under the ncAv laAv being 12^ per cent. I n addition there is the capital-stock tax, which amounts, roughly speaking, to about 2 per cent of the net income. This makes a total tax equivalent to nearly 15 per cent on corporate net income; and when we remember that the great bulk of the business of the country, both large and small, is carried on under corporate form and that the net income must largely be distributed in dividends, and that these dividends are then in turn subject to surtax in the hands of persons receiving them, it is at once seen that the resulting taxation to persons engaged in productiA^e business is very heavy. For instance, a stockholder subject to surtax at 10 per cent really pays about 25 per cent, 15 per cent through the corporation and 10 per cent as surtax on his dividends; while a stockholder subject to 50 per cent surtax would be taxed about 65 per cent on such profits. Estate tax. Much of what has been said respecting the high surtaxes applies equally to the high rates of taxation upon estates. The continuance in time of peace of the very high estate taxes imposed during the emergency of war should receiAT^e serious consideration. There are two chief objections to the present high rates, running as they do up to 25 per cent of the net amount of the estate, which should be emphasized. The first is that taxes at such rates, which seize upon and take away so much of the capital of the country, are fundamentally wrong. The Nation, just as the iridividual, should not use up its capital in payment of its ordinary expenses. The money Avhich is taken by^ way of such taxes is, to a large extent, the capital which is in use SECRETARY OF T H E TREASURY. 23 tind necessary in carrying on the business of the country, and just to the extent that the Government seizes upon and takes this capital i o r its own income its loss must be made good out of the thrift and savings of the people of the country. . The more serious difficulty, however, in this respect is with the high rates.. Where the rates are moderate and thereby are widely spread and take but a moderate amount of capital from each estate, their effect is not so great; but when the rate is high and falls heavily in a fcAv places, and the amount of capital seized and taken away irom certain lines of industry, or certain particular industries, is large, the evil effects are very harmful. I n the second place, there is the destructive effect upon values. If all the Avealth of an estate consisted of money, the eAdl results of such taxes Avould be much less. But the wealth of estates does not consist of money, nor, in fact, in most cases, of property readily convertible into money. An estate consisting principally of Government bonds or municipal securities is of less real value to the community than is the estate that is invested in property, in any line of productiA^e industry giving useful employment to large numbers.of people. And yet, the estate invested in tax-free securities would be much less affected by the tax than the estate invested in real estate, in manufacturing plants, in merchandising, in farming, or in any line of productive industry. ^ Again, when a man actively engaged in business dies, leaving an estate of considerable size, his family is called upon to providefor the payment not merely of the Federal estate tax, but, in many cases, an inheritance tax to the State in which he lived. There is also frequently a tax to be paid to the State where some part of the property is located, and often a tax must be paid upon the value of shares of stock to the State where the company is incorporated. So that, there may be as many as four different taxes to be paid upon the same property. I n addition, there is usually a greater or less amount of indebtedness existing which must be met. These obligations can be met only by payment in money. The estate can not take its property and simply divide it up, giving to the Nation, to the State, and to the creditors a proportionate share of the actual property. Those ultimately entitled to share in the distribution may take their portions in property, but, before that can be done, actual cash must be found for the payment of the taxes and the debts; and the larger these are iri proportion to the amount of the estate, the more difficult the task becomes. In the ordinary course of business, there is just a certain amount of property that changes hands from year to year. " There is a market for a certain amourit and no more. The extent of this market, that is, the buyers who are willing to buy at fair prices, is dependent largely 24 REPORT ON THE FINANCES. upon the amount and character of the property coming upon the market. There may be a ready market at a reasonable price for a limited ainount of the shares of an industriar company, or for a mediumsize manufacturing property, .or for residence or business property of moderate price. But the larger the amount of property that must be sold, the more difficult it becomes to find buyers for i t ; and if the sellers are under some absolute need to sell,, as-is the case where the money must be proAdded within a limited time to pay taxes and debts, then just, that much less ready and willing are bidders to buy, and just so much greater is the sacrifice 'that the sellers must make in order to obtain cash. The same thing is seen constantl}^ in the commercial world. If a large amount of any of the staple commodities, even such as cotton, Avheat, or any article of consumption, is suddenly pressed upon the market, and .the holder's needs force him to sell, there is an immediate and great decline in the price which he is able to obtain. What is true of articles of daily consumption is very much more true as respects iuA^estments in property, such as largely makes up the estates called upon to pay these taxes. It has become notorious in recent years, Avhenever a man of means dies, leaAdng his estate obligated to pay a large amount by Avay of taxes or debts, or both,"that there is an immediate decline in all classes of securities in which he is known to be interested. And when, under these conditions, the estate is required to make a sale of its property, of whatcA^er class it may be, there is not merely a large loss to the estate—a large shrinkage in the value of the property beloAv its real AVorth—but there is also a loss inflicted upon cA^eryone else Avho is interested in these properties, especially if at the same time they desire to, or must, sell. The extent of the shrinkage of values and the losses caused b}" the forced liquidation of many estates is not generall};^ realized, for the present high rates have been in existence but a short time and their evil effects, which Avill naturally increase if these rates continue, are only gradually coming to be recognized. The effect of this breaking doAvn of values tends directly toAvard making the tax less productive pf revenue, and the longer these rates continue with the successiA^e coming upon the market of estates, the more their effect will be felt in the rcA^enues, for each forced liquidation tends to make a ncAV and loAver A^alue upon Avhich all taxes must be based. A large part of the revenue now deriA^ed from the estate tax comes from the more moderate rates. Taxation which is destructive of that basis of value on which all taxes rest is neither logical nor wise in principle, and in any revision of our tax laws serious attention should be mven to this subject. SECRETARY OF T H E TREASURY. 25 The remedy. I t Avould not seem either Avise or necessary suddenly to change from our present system of taxation to new arid untried plans; and the evils which have been discussed can be corrected without doing anything of this sort. The necessary adjustments can readily be made by retaining most of the present taxes, but substantially reducing the rates, and supplementing the revenues by some additional taxes. The income tax is firmly embedded in our system of taxation and the objections made are not to the principle of the tax but only to the excessively high rates. We hear much of the need of simplifying our tax laAvs arid there is room for this. The greatest simplification that can be made is in the reduction of the rates. So long as the rates were low,.there Avas not much difficulty in the administration of the laAv, even though the system was entirely new and the organizatiori administering it unfamiliar with the operation of such a law. The complexity bf the laAV, so far as concerns the income tax itself, has arisen largely out of the high rates which make every point that arises involve substantial amounts of money, and Avhich means that each possible question is contested by the taxpayer and by the Government, Avith resulting dela^^ in the collection of the revenue, irritation and annoyance and expense on the part of the taxpayer, and costly litigation. With moderate rates, very much of this difficulty would disappear. The amount of revenue involved in anj^ such reform is not nearl}^ so great as is generally supposed. To reduce the surtax rates to a maximum of 25 per cent, and grading the reductions through all the brackets, would mean an apparent loss of about $130,000,000 in revenue. A 20 per cent maximum rate ^ on the same basis Avould involve a revenue loss of about $200,000,000. Other adjustments AA^hich should be made Avould probably iuA^oh^e an amount equalto that made in the surtax rates. This loss of revenue, hoAvever, Avould not be permanent, for the reduced rates Avould ultimately be productive of more revenue than higher rates, due to the increase in taxable transactions. If this loss of revenue could not be met by rigid economy in expenditures, the revenue required could be raised either by placing a tax on certain specific articles, or by a loAv-rate general tax on a broad class of articles or transactions. Such taxes as those noAv imposed on automobiles and tires have been found simple and inexpensiA^e of administration, and the collection is always substantially current; they have been steadily productive of revenue, and have been without injurious effects upon the country. I n vicAv of past experience, a general tax either of this or like character upon a broad class of 26 REPORT ON T H E F I N A N C E S . articles or transactions could be readily administered; and the rate could be made sufficiently low as not to bear unduly upon any class and at the same time produce a large amount of additional revenue. By retaining the income tax with reasonable surtax rates, which iri peace times ultimately should not rise above 10 per cent, taxpayers would still be required to contribute in- proportion to their ability to p a y ; while by placing a certain amount of tax on specific articles, or classes of articles, or transactions, at so low a rate that they could readily be borne without injury, the income tax could be materially . simplified, the tax laws could be more readily administered, and at the same time the needed revenues would be raised without the evil effects noAv resulting from the present excessive rates of taxation. B U R E A U OF I N T E R N A L R E V E N U E . Progress has been made in the audit and settlement of income and profits tax returns for past years, but there is still a vast amount of accumulated cases to be disposed of before the work can be brought to a current basis. The magnitude of the task placed upon the bureau by the income, war profits, and excess profits taxes can hardly be exaggerated. Under these laws it became necessary, beginning with the returns for the year 1917, to make a careful examination, and in most case's an audit, of the returns for every financial, trading, and industrial concern in the United States, Avith' the result that, Avhereas prior to 1917 the bureau had been able to keep reasonably abreast of its work, since that time it has fallen further and further behind. The most difficult problems were those arising in connection with the excess profits tax, and particularly the question of invested capital as applied to the widely varying conditions in which different corporations were placed. The rule prescribed by the act for ascertaining inA^ested capital was necessarily an arbitrary one, involving in many cases great hardship and serious discrimination betAveen corporations in similar lines of business. As a result the work of the bureau has become more and more congested, the expense to the taxpayers of handling the cases has been enormous, Avhile the cost to the Govern- . ment has steadily increased. The repeal of the excess profits tax, effective at the end of the present calendar year, will, of course, afford great relief in this respect and makes it easier to formulate practical plans for disposing of the accumulated work. The condition of the work in the bureau has been the subject of much thought and consideration and a careful study has been in progress for scA'Cral months, and is still going on, for the purpose 27 SECRETARY OF THE TREASURY. -of determining the amourit of the accumulated work, the progress being made, and what steps it is practicable to take for the purpose oi cleaning up this accumulation and bringing the Avork of the bureau to a current basis. As a result of this study it was found that for the years 1917 to 1920, inclusiA^e, there remained undisposed of at August 31, 1921, the audit of 1,488,950 personal returns and of 689,425 corporation, returns. The following table indicates approximately the condition of the work in the bureau on August 31, 1921: Statement of condition of i.vork, income-tax unit, Aug. 31, 1921. Total returns Total audited. • returns filed or to be hanPer Niunber. cent. dled. Personal: 1917 1918 . 1919 . 1920 Total Corporation: 1917 : 1918 1919 1920 Total . : " 830,000 660,000 850,000 890,000 827,702 627,227 285,953 168 3,230,000 1,741,050 323,138 368,290 368,322 349,500 1,409,250 99.7 95 34 54 Balance to be audited. Number. Per cent. 2,298 32,773 564,047 889,832 0.3 5 66 100 1,488,950 46 305,417 94.5 278,323 • 75.6 133,351 36.2 2,734 .8 17,721 89,967234,971 346,766 5.5 24.4 63.8 99.2 719,825 689,425 48.9 51.1 NOTE.^The personal returns do not include the smaller returns which are handled largely in the collectors' offices. Many of the returns shown as " to be audited " vvere in A^arious stages of progress. Generally speaking, of course, the tax shown by the face of these accumulated returns has been collected currently when due, and there remains only such additional tax as may be developed by the audit and investigation. The cases remaining are largely the ones less productiA'C of revenue and more difficult to handle, due to the fact that heretofore, in order to get as much revenue as possible, the cases most easily handled and yielding the largest revenue Avere, to a great extent, given earliest attention. I t Avas found that the Avork of the bureau had been much interfered with by Avar conditions, by lack of adequate office space, by the fact that such space as could be had Avas widely scattered, and by the difficulty of obtaining and keeping an efficient personnel; that there were UOAV engaged in the Avork making audits, examinations, assessments, and settlements a total force of approximately 8,000 persons; that the Avork on the cases in hand Avas in all stages of progress, and that assessments for additional taxes were being made at an average 28 REPORT ON T H E FINANCES. rate of over $30,000,000 per month. I t Avas apparent that no sudden or radical changes in plans or methods of handling work were eith sr practicable or advisable, since it was important to maintain a steady progress of Avork. As a result, the study and plan being pursued are on the lines of the gradual introduction of such changes in methods as can bedntroduced Avithout interfering with or breaking down the existing organization and at the same time bring about greater efficiency in the Avork and increased expedition in the disposition of cases. This is being done Avith the cooperation of those engaged in the work, and has already resulted in very considerable improvement and increased production. The situation as regards claims riiade by taxpayers by Avay of abatement, or for credit, or for refund in respect of taxes claimed to have been erroneous^ or illegally assessed may be taken as typical, although this presented one of the greatest points of congestion and accumulation of work. A thorough and careful investigation of the pending claims shoAved that on October 21, 1921, there Avere pending claims filed by taxpayers as fOUOAVS : Number of claims. Abatement of taxes assessed but not paid '. Cred it.claimed on account of alleged jprevious overpayments. Refund of taxes paid Total 57,519 20,146 79,612 Amount. $015,181,744 138,097,506 253,089,606 1,006,968,856 Many of these claims haA^e been pending for a considerable period of time and it is manifestl}^ unfair to the taxpa3^ers and to the Government that this condition should continue. As a result of the study that has been made, plans have been formulated and put into effect for the handling and disposition of these claims which it is expected Avill enable the pending claims substantially to be disposed of b,y the end of the present fiscal year. The prompt disposition of the abatement claims Avill result in the collection of a" large amount of taxes now being held up by the pendency.of these claims. As rapidly as it can be done, consistently Avith the proper consideration of the cases, both from the standpoint of the taxpayer and of the GoA^ernment, it is proposed to expedite the disposition of the work which has accumulated from past years, but the progress which can be made in this respect can only be* determined by actual experience in the future. The Avork involved is of a complicated and difficult character, j)articularly in the cases iuA^olving large amounts of money, and requires special training and skill, so that additional personnel is not readih^ or quickly aA^ailable. In addition to this the bureau must SECRETARY OF THE TREASURY. 29 keep within the limit of its appropriation for this Avork, and it does not seem advisable greatly to expand the permanent organization to any greater extent than is absolutely required, especially as the excess profits tax ends Avith the present year. However, the problem Avill continue to receiA^e the very best thought of the department to the end that taxpayers may know as promptly as possible their tax liability, arid that the work shall be handled with expedition and promptness and be as nearly current as this class of Avork can be made. ' , Internal revenue collections^ for the fiscal year ended June 30, 1921, aggregated $4,595,000,765.74, as compared Avith $5,407,580,251.81 for the preceding fiscal year—a ciecrease of $812,579,486.07. This decrease in collections is due principally to a decrease of $728,798,329.85 in the collections of income, and profits taxes, Avhich aggregated, for the fiscal year 1921, $3,228,137,673.7^5 as compared with $3,956,936,003.60 for the fiscal year 1920. The decrease in the collections of income and profits taxes is due in p a r t to the fact that the profits tax rates imposed upon corporations for the year 1919 Avere less than those im^posed upon corporations for the 3^ear 1918, the effect of the reduced rates upon the revenues of the Government not being fully felt in the fiscal 3^ear 1920. During the fiscal year 1,570,937 income and excess profits returns were audited, compared AV ith 697,853 for the preceding fiscal year. As a result of these audits, additional taxes amounting to $357,078,422.86 were assessed. Of this amount $113,664,275.99 was assessed as the result of office audits and $243,414,146.87 as the result of field examinations by revenue agents. The number of claims adjusted and scheduled during the year was 83,668, compared AAdth 57,211 the preceding year. The number of claims received was 128,523, compared Avith 100,443 the preceding 3^ear. There was a marked increase in the number of claims disposed of during the last quarter of the fiscal year as compared with the preceding quarters. The committee on appeals and review, Avhich hears appeals of taxpayers from the decisions of the income tax unit, has had a busy year. I t received 97 appeals from taxpayers and 95 requests for 1 The figures concerning internal-revenue receipts a s here giveii differ from figures carried in other Treasury statements showing the financial condition of the Government, because the former represent collectioris by internal-revenue ofBcers throughout the country, including deposits by postmasters of amounts received from sale of internal-revenue documentary s t a m p s , while the l a t t e r represent the deposits of these collections in t h e Treasury or depositaries during the fiscal year concerned, t h e differences being due to the fact t h a t some of the collections in the l a t t e r p a r t of the fiscal year can not be deposited, or are not reported to t h e Treasury as deposited, until after J u n e 30, t h u s carrying them into the following fiscal year as recorded in the stateraents showing the condition of the Treasury. (Department Circular No. 176, par. 19.) 30 ^ REPORT QN T H E FINANCES. advice from the income tax unit. Four hundred committee recommendations and 65 formal memoranda were written by the committee and approved by the commissioner. Estate tax collections for the fiscal year aggregated $154,043,260.39^ compared Avith $103,635,563.24 for the preceding fiscal year. The total number of estate tax returns filed during the year Avas 11,833.. As a result of field examinations and division audit additional tax. in the sum of $13,290,685.33 was disclosed. A classified table shoAving the general sources of internal rcA^enue from 1863 to 1921 is included in this report as Exhibit 78, page 383.. PROHIBITION A N D NARCOTIC ENFORCEMENT. The national prohibition act of October 28, 1919, imposed duties upon the Bureau of Internal Eevenue Avhich were new to it, and from the effective date of the act a considerable portion of its energies havehad to be dcA^oted to the enforcement of a regulatory act instead of to a tax-collecting act. I n this Avork the bureau has no doubt.made mistakes. The act has in some instances been misinterpreted and the means taken to enforce it have not ahvays proven effective. T h e past year, hoAvever, has seen cpnsiderable progress. Many of the earlier mistakes of the bureau have been corrected. The regulations have been amended, the act has received judicial interpretation in the courts, and many points have been cleared up by opinions of the Attorney General. The proper enforcement of this laAv is a matter of great difficultyy and the effort of the department is UOAV being directed to the building up of an efficient organization of trained men, by Avhich means it is expected that better results may be obtained. Attention is also being given to the matter of placing as fcAv restrictions upon those engaged in legitimate business as can be done consistentlv with the proper enforcement of the laAv. Gratifying results have been obtained by the small force of narcotic inspectors and agents assigned to the enforcement of the Harrison Narcotic Act. Through the medium of nionthly returns of importers, manufacturers, producers, and wholesale dealers, all transactions by registered persons are under proper surveillance and the dealings in narcotics have been effectively controlled. Illicit traffic by nonregistered dealers, due in a large measure to smuggling drugs, continues as a great menace. The courts haA^e shoAvn in their decisions increased impatience with these Adolators, each decision seemingly going a step further in the proper enforcement of the law. I n several instances physicians convicted of commercializing in narcotic drugs have had their licenses to practice medicine revoked'and are serving heavy prison sentences. SECRETARY OF THE TREASURY. • 31. ECONOMY I N G O V E R N M E N T E X P E N D I T U R E S : BUDGET S Y S T E M . I n connection Avith the revision of the internal-tax laws and on other occasions the Treasury has frequently emphasized the vital importance of reductions in Government expenditures. I n the letter of April 30, 1921, to the chairman of the Committee on Ways and Means, the Secretary said, after referring to the expenditures for 1921: The Nation can not continue to spend at this shocking rate, x\s the President said in his message, the burden is unbearable, and there are tAvo avenues of relief. "One is rigid resistance in appropriation and the, other is the utmost economy in administration." This is no time for extraA^agance or for entering upon new fields of expenditure. The Nation's finances are sound and its credit is the best in the world, but it can not afford reckless or wasteful expenditure. New or enlarged expenditures can not be financed without increased taxes or new loans. Etspenditures should not eA-en be permitted to continue at the present rate. The country is staggering under the existing burden of taxation and debt and clamoring for gradual relief from the war taxation. It may be counted upon not only to exert effective pressure, against increased expenditures but also to glA^e Its whole-hearted support to all sincere efforts to reduce -expenditures. The. last Congress made a creditable record in reducing appropriations, and it effected substantial economies. Notwithstanding the reduced appropriations, however, •e;s:penditures have continued unexpectedly high, and the reduction in expenditures has barely kept pace with the shrinkage in receipts. Reduction of appropriations, mbreoA^er, will not of itself be effectiA^e to reduce expenditures unless at the same time the Congress avoids or controls measures which result In expenditure Avithout an apparent appropriation. Reappropriations of unexpended balances, revolving-fund appropriations and appropriations of receipts, .^and other indefinite authorizations of expenditure have in the past been responsible for hundreds of millions of dollars of actual cash outgo. I n the letter of March 9, 1921, to the banking institutions of the country, the Secretary had previouslj^ said: These figures as to the public debt and the current operations of the Treasury shoAV that the country's finances are sound, but that the situation calls for the utmost economy. The Nation can not afford extravagance, and so far as possible it.must avoid entering upon new fields of expenditure. The heavy requirements of the GoA^ernment on account of necessary expenditures, including interest and sinking fund on tlie public debt and the maturity of seven and one-half billions of short-dated debt within the next tAvo years or thereabouts, make it imperative that the greatest care and economy be exercised in matters affecting Government expenditure. The people generally must become more interested in saving the Government's money than in spending it. A thoroughgoing national budget system must be established and the Government's ex" penses brought into relation to its income. The year under review has shown extraordinary progress toward the reduction of Government expenditure, and striking cuts in expenditure have been made for the current fiscal year. The estimates for the fiscal year 1923, as presented in the budget and iridicated 32 REPORT ON T H E FINANCES. elsewhere in this report, show a tentative excess of expenditures OA^er receipts in the amount of about $167,000,000, due in large part to the reduction in estimated revenues. I t is confidently expected, however, t h a t with continued economy and effective pressure for reduced expenditures in all quarters it will be possible to overcome this threatened excess of expenditure and go through the year with a balanced budget. Under the act approved June 10, 1921 (budget and accountingact, 1921), proAdsion Avas made for a national budget system, and an independent audit of Government accounts, thus bringing to fruition the desires .and efforts of many years for budgetary reform in the handling of the Federal finances. I n conformity Avith the provisions of this act, the Bureau of the Budget was established in the Treasury Department, and a Director of the Budget appointed by the President. The bureau in its functions has been guided by the utterance of the President in his message, that there were two avenues of relief from the financial burdens of the Nation, namely: " One is rigid resistance in appropriation, and the other is the utmost economy in administration.-' The success of the budget system depends largely upon effective coordination of the activities of the GoAT^ernment and general cooperation in the efficient control of expenditures and the enforcement of economies in the use of the appropriations authorized by Congress. Through the organization perfected by the Bureau of the Budget, all departments and independent establishments of the Government are responding to the call to iiphold and join in the movement now being directed by the Budget Bureau toAvard economies in the expenditure of public funds, the limitation of activities, the elimination of duplication of Avork, the more efficient distribution and sale of surplus supplies and equipment, and improved methods of administration and operation. The progress which has been made in the reduction of Government expenditures is shown by the following table: . " • Estimated, fiscal year 1922. Estimated, fiscalyear 1923. S5,115,927,689.30 S3,604,980,166 S3,143,415,927 422,113,000.00 387,942,200 369,338,800 5,538,040,689.30 3,992,922,366 3,512,754,727 Actual, fiscal year Actual, fiscal year 1921. 1920. •S6,403,343,841.21 Ordinary expenditures Pubhc debt expenditures charge78,733,400.00 able against ordinary receipts... Total ordinary expenditures (including public debt expenditures chargeable against ordinary receipts) 6,482,077,241.21 LOANS TO FOREIGN GOVERNMENTS. On November 15, 1921, there were held by the United States Government obligations of foreign Governments under different eate- 33 SECRETARY OF THE TREASURY. gories, as set out in the following statements, which show in detail the obligations of each class, the principal amount due from each country, tod, in the case of loans under the Liberty bond acts, the obligations acquired under the first Liberty bond act, and. the obligations acquired under the second Liberty bond act, as amended and supplemented. From, these statements it will be seen that the obligations purchased under the Liberty bond acts are all demand obliga-. tions, and that the other classes of obligations mature at various fixed dates, beginning June 30, 1920, and extending to July 5, 1930. I t is expected that the obligations held by the United States Grain Corporation (received under the act of March 30, 1920, on account of the sale of flour for relief purposes), will,dn due course, be turned OA^er to the Treasury Department, but pending the liquidation of the affairs of the corporation it still holds these obligations. - Obligations of foreign Governments held by the Treasury for advances made under the Liberty bond acts. ... ..';^ First Liberty b o n d act. Country. Belgium ..'. Cuba.. Czechoslovakia . France Great B r i t a i n Greece . Italy Liberia Roumania Russia. Serbia... • $35,000,000.00 650,000,000. 00 1,155,000,000. 00 175,000,000. 00 97,500. 000. 00 1,500,000. 00 .... Total 12,114,000,000.00 Second L i b e r t y b o n d act as ^" amended and supplemented. Total under Liberty bond acts. $312,691,566.2:3 $347,691,566.23 8,575,000.00 8,575,000.00 61,256,206. 74 61,256,206.74 2,300,762,938.19 2,950,762,938.19 3, Oil, 318,358. 44 . 4,166,318,358. 44 15,000,000.00 15,000,000.00 1,473,034,050.90 1,648,034,050.90 26,000.00 26,000.00 23,205,819. 52 • 23,205,819.52 187,729,750. 00 90,229,750.00 26,175,139. 22 24,675,139.22 7,320,774,829. 24 Present interest rate. Maturity. P e r cent.' 5 Demand. 5 Do. ' 5 Do. 5 Do. 5 Do. Do. Do. Do. 5 Do. 5 Do. 5 Do. 5 1 9,434,774,829.24 1 Advances up to Sept. 24,1917. Obligations received from the Secretary of War and the Secretary of the Navy on account of sales of surplus loar materials {act of July 9, 1918). Country. Belgium Principal amount payable. Total. $19,000,000.00 8,392,097. 57 .196,483.57 693,346.76 412,093. 04 399,340.64 779,370.96 D a t e of • obligation. D a t e of maturity. Interest rate. A p r . 10,1919 A u g . 5,1919 A u g . 21,1919 J u l y 1,1920 Aug. 1,1920 N o v . 1,1920 J a n . 1,1921 A p r . 10,1922 Aug. 5,1922 A u g . 21,1922 A p r . 9,1930 do do........ do Percent. 5 5 5 5 5 5 5 May June Aug. Oct. Feb. May June June June Oct. Jan. June $29,872,732. .54 Czechoslovakia 5,000,000.00 5,000,000.00 4,902,994.94 2,464,950.38 1,291,903.85 1,962,145.37 Esthonia 5,000,000.00 5,000,000.00 2,213,377.88 29,1919 15,1919 10,1919 14,1919 10,1920 .1,1920 30,1922 30,1923 30,1924 14,1922 28,1923 30,1925 5 5 5 5 5 5 J u n e 30,1922 J u n e 30,1923 J u n e 30,1924 5 5 5 20,621,994. 54 J u n e 6,1919 J u n e 11,1919 J u n e 29,1919 i2,2i3,377.88 70073--FI1921- 34 REPORT ON THE FINANCES. Obligations received from the Secretary of War and the Secretary of the Navp on account of sales of surplus war materials {act of July 9, 1918)—Contd. Principal amount payable. Country. Total. $400,000,000.00 774,382.59 6,566,762.42 France Latvia Lithuania Poland 2,521,869.32 4,159,49L96 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 7,890,939.27 5,536,867. 71 3,941,803.61 2,266,709.66 Roumania 5,000,000.00 5,000,000.00 2,922,675.42 Aug.' July May $407,341,145.01 2,621,869.32 4,159,491.98 59,636,320.25 Russia Serbs, Croats, a n d Slovenes 406,082.30 5,000,000.00 5,000,000.00 10,000,000.00 50,350.28 281,205.51 4,646,465.20 D a t e of obligation. 12,922,675.42 406,082.30 1,1919 5,1920 9,1920 D a t e of maturity. Aug. July May 1,1929 5,1930 9,1930 Interest rate. Per cent.. 5 5- J u n e 27,1919 .do A u g . 13,1919 J u n e 30,1922 J u n e 30,1923 J u n e 30,1924 5 55 5 5 5. 5 5. 5 55 5 5= 5 A u g . 8,1919 J u n e 13,1919 A u g . 30,1919 .do Dec. 20,1919 A p r . 15,1920 A p r . 29,1920 J u n e 30,1922 do J u n e 30,1923 J u n e 30,1924 do A p r . 15,1924 J u n e 30,1925 555. 5' 5. 5 5. J u n e 28,1919 J u n e 30,1922 do do J u n e 3,1919 . - - . . d o J u n e 30,1923 do J u l y 19,1919 J u n e 30,1924 do J u l y 22,1919 do J u l y 31,1919 1,1925 Oct.. 1,1919 Oct. Oct. 15,1919 O c t . 15,1925 A p r . 22,1920 M a r . 27,1926 24,978,020.99 Total - 574,673,710.21 Obligations received from the American Relief Administration {act of Feb. 25,. 1919). Country. Principal amount payable. Armenia Czechoslovakia Esthonia Finland $8,028,412.15 6,428,089.19 1,785,767.72 3,289,276.98 4,992,649.19 Latvia. Lithuania Poland 2,610,417.82 822,136.07 10,000,000.00 10,000,000.00 31,671,749.36 Russia Total 4,465,465.07 Total. D a t e of obligation. D a t e of maturity. Interest rate. $8,028,412.15 6,428,089.19 1,785,767.72 J u n e 30,1919 do A u g . 11,1919 J u n e 30,1919 J u l y 1,1920 J u n e 30,1921 J u n e 30,1923 J u n e 30,1921 do do Percent. 5 5 5 5 5 J u n e 30,1919 do :....do do do do do do J u n e 30,1922 J u n e 30,1923 5 5 5. 5 5 J u n e 30,1921 5- 8,281,926.17 2,610,417.82 822,136.07 "*5i,*67i,*749.'36" 4,465,465.07 J u l y 84,093,963.55 1,1919 SECRETARY OF THE TREASURY. 35 Obligations held by the XJyiited States Grain Corporation {act of Mar. SO, 1920). Principal amount payable. Country. • Armenia.. . Austria. •. Czechoslovakia Hungary Poland.. $793, 733.40 472,533.00 656,190.00 748,725. 00 129,405.00 949,665.11 181,253.83 ... . ... Total 24,055, 708.92 2, 873,238. 25 1,685,835.61 682,147. 50 146,632. 50 2,146,539. 37 961, 975. 89 1,605,665.06 1,054,133. 66 804,591. 99 637, 439.67 313,952. 37 1,147,319.34 828,633.04 455,966.98 759,134.29 448, 331. 49 68, 553.18 47,377.06 30,720.85 62,196. 98 12, 111, 203.15 Total. Date of obligation. Interest rate. Date of maturity. • 26,1919 June 30,1921 29,1919 do 10,1919 . . . - . d o 26,1920 . . . . . d o 29,1920 do 20,1920 do 17,1920 do $3,931,505. 34 24,055,708.92 Sept. 4,1920 Jan. 1,1925 do 2,873,238. 25 July 30,1920 1,685,835.61 May 29,1920 do Dec. 1,1919 June 30,1921 Dec. 19,1919 do.. Mar. 12,1920 do Mar. 22,1920 do Mar. 26,1920 do Apr. 2,1920 do Apr. 9,1920 do Apr. 13,1920 do do June 30,1920 Apr. 23,1920 June 30,1921 Apr. 26,1920 do ^fay 10,1920 do May 12,1920 do May 13,1920 do May 14,1920 do June 2,1920 ..-•.-do July 7,1920 do July 14,1920 do 24,312,514.37 July 13,1920 Jan. 1,1925 Nov. Nov. Dec. Jan. .Tan. May June Per cent 5 S & 5 5 5 5 6 6 6 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 6 • 56,858,802.49 The interest accrued.and remaining unpaid on obligations of foreign Governments purchased by the Treasury under the Liberty bond acts for the half years ending, respectively, October 15 and November 15, 1919; April 15 and May 15, 1920; October 15 and November 15, 1920; Apri.l 15 and May 15, 1921; and October 15 and November 15, 1921, is as follows: Country. Oct. 15 and Apr. 15 and Oct. 15 and Apr. 15 and Oct. 15 and Nov. 15,1919. May 15,1920. Nov. 15,1920. May 15,1921. Nov.15, 1921. Belgium Czechoslovakia. France.Great Britain.. Italy Liberia Roumania...... Russia -Berbia $8,330,8.32.65 $8,468,375.00 $8,515,912.81 $8,692,289.16 $8,692,289.16 1,164,422.14 1,354,134.64 1,478,333.35 ^ 1,531,405.17 1,531,405.17 6.5,287,862.51 71,836,44L19 73,255,486.49 73,769,073.45 73,769,073.45 101,691,907.05 101,870,458.96 101,870,458.96 101,870,458.96 101,870,458.96 39,050,152.83 40,442,845.74 40,765,715.11 40,820,167.12 41,200,851.27^ 650. 00 650. 00 268. 85 650. OOl 597,302.95 580,145. 49 625,000.00 580,145.49 382,818.09 4,713,366.30 4,685,999.25 4,693,243.75 4,693,243.75 4,693,243.75 659,230.96 654,378.48 654,378.48 669,258.13 •669,51L64 Total. $42,699,698.78 7,059,700.47 357,917,937.09 509,173,742.89 202,279,732.07 2,218.85 2,765,412.02 23,479,096.80 3,306,757.69 Total 1221,290.619.70|229,953,035.27|231,836,334.38 232,611,811.581232,992,495.73| 1,148,684,296.66 Add interest accrued ana remaining unpaid (in excess of certain special funds held in the Treasury to be applied on account of interest due May 15,1918, and Nov. 15,1918) on Russian obligations for half year ending Nov. 15,1918, and half years ending Apr. 15, 1919, and May 15,1919 6,817,885. 2S Total. 1,155,502,181. 91 The interest accrued and remaining unpaid, up to and including the last interest-payment date in each case, on (1) foreign obligations received from the Secretary of W a r and the Secretary of th« 36 REPORT ON THE FINANCES. Navy on account of sales of surplus war supplies (act of July 9,' 1918), (2) foreign obligations held by the Treasury received from the American Eelief Administration (act of February 25, 1919), and (3) foreign obligations held by the United States Grain Corpora-• tion (act of March 30, 1920), was as follows: (1) F r o m sales of surplus war supplies. Country. Czechoslovakia. Esthonia • France •. Latvia Lithuania .Poland Roumania Russia Serbs, Croats, a n d Slovenes Armenia Finland •. Austria Hungary "... $1,929,487.63 1,221,-337.80 492,507.18 125,920. 74 415,949.20 4,085, o i l . 05 1,292,267.56 30,428.37 2,133,448.72 (2) From American Relief Administration. •$642,808. 92 168,330.57 261,04.L78 82,213.60 5,167,174. 94 . 11,727,258.25 $172,394.30 8,168^ 687. 29 Total. 1,443,342.54 101,150.14 $2,744,690. 85 1,.3S9,668.37 492,507.18 386 962 52 498 162, 80 10 741 577 71 1^292; 267. 56 476,364.84 2,133,448.72 1,079,260.95 598,339.79 1,443,342.54 101 150.14 3,481,798. 43 23 377 743. 97 1,488,491.72 445,936.47 802,841. 22 598,339,79 Total (3) F r o m sales of floiir b y U n i t e d States Grain Corporation. 276,419.73 The following is an itemized statement shoAving the amount of interest heretofore paid by each of the foreign Governments on obligations acquired by the United States Treasury under the Liberty bond acts: T o Nov. 15,1920. Coantry. Belgium Cuba Czechoslovakia. France Great B r i t a i n . . . Greece Italy Liberia R o u m a n i a '. Russia Serbia Totals- . - . $10,907,281.55 1,136,865.47 301,178. 09 128,140,816. 48 233,357,185.50 409,153. 34 57,598,852.62 161.10 263,31.3.74 4,595,564.15 636,059.14 , . . '.' : . . ..... 437,349,431.18 N o v . 16,1920, to N o v . 15, 1921. $308,057. 44 1,429,559.65 14,487, .500. 00 750,000. 00 •700.00 277,247. 35 17,251,064.44 Total. $10,907,281. 55 1,442,922.91 304,178. 09 129,570,376.13 247,844,685. 50 1,159,153. 34 57,598,852.62 861.10 263,313.74 4,872,811.50 636,059.14 454,600,495.62 The greater part of the amount received from Eussia represents the payment of certain funds realized by the Eussian representatives in this country in connection with the liquidation of their fiscal operations. The amounts paid by the Governments of Cuba and Greece include interest paid up to June 30,1921, and October 15,1921, respectivel}^ The amount paid by the Government of Great Britain includes interest paid up to October 15,1921, on $54,900,000 and up to November 15, 1921, on $36,600,000, being the unpaid principal amounts of the obligations of that Government regarded as having been given for Pittman silver advances. 37 SEC-RETAPvY 0.F T H E TREASURY. The following is an itemized statement showing the amount of interest heretofore paid by each of the foreign Governments and so-called Governments on the obligations acquired under the act of July 9,. 1918, on account of sales of surplu.s war. supplies: 16,1920, to To Nov. 15,1920. Nov. Nov. 15,1921. Country. Bftlginm. France Latvia Poland Russia , . . . . $1,417,922. 34 . . •-.. Total. i26,266. i9 1,176,454.11 10,179. 87 2,730,822. 51 $1,379, 429.06 20,038,719.13 114,166.67 21,532,314.86 Total: $2,797,351. 40 20,038,719.13 128,266.19 1,290,620.78 10,179. 87 24,263,137.37 Interest on the obligations of the Governments of Belgium and France under this class is being paid currently as it becomes due. No interest has been paid on the obligations of foreign Governments and so-called Governments, acquired under the acts of February 25, 1919, and March 30, 1920, respectively. I n the annual report for the fiscal year ended June 30, 1920, on page 54, a statement of the credits established from April 24, 1917, up to November 15, 1920, and cash advanced against such credits, was set out as follows: Country. Belgium . Cuba Czechoslovakia France. . . . . Great Britain G reece Italy Liberia Roumania Russia Serbia Total Credits established (net). Cash advanced. $349,214,467. 89 $349,214,467.89 10,000,000.00 10,000,000.00 61,256,206. 74 67,329,04L10 3,047,974,777. 24 2,997,477,800; .00 4,277,000,000.00 4,277,000, boo. 00 48,2.36,629.05 15,000,000. 00 1,666,260,179. 72 1,631,338,986. 99 26,000.00 5,000,000. 00 25,000,000.00 25,000,000.00 187,729,750. 00 187,729,750.00 26,780,465. 56 26,780,465. 56 9,710,525,310. 56 9,580,823,677.18 Other charges . against credits. Balances under estabUshed credits. $6,072,834.36 50,496,977.24 $33,236,629.05 33.236,629.05 34,921,192.73 4,974,000.00 96,465,004.33 The balance of the credit, as above stated, in favor of France, was withdrawn on August 3, 1921. The balance of the credit of $34,921,192.73 in favor of Italy was extended for the purpose of enabling the Italian Government to make such reimbursements in dollars to the British Government as should be found due. Disposition of this credit was as follows: I n the purchase of certain classes of commodities in this country for war purposes, and in certain other transactions connected with the war, the British Government acted for France and Italy, who periodically reimbursed the British Governrnent out of the proceeds of advances from the United States Treasury. I n settling these ac- •38 REPORT ON T H E FINANCES. counts, which had extended over many months, it was found that the amount of reimbursements still to be made by the Italian Government to the British was $16,695,063.91, and that the French Government had overpaid the British Government in excess of this amount. On March 30, 1921, an advance of $16,695,063.91 was made to Italy for the purpose of making said reimbursement to the British Government. The indebtedness of Italy to'the United States Government was increased by this amount. In accordance with, an agreement, the British Government, at the time of the advance of said sum of $16,695,063.91 to the Italian Government, simultaneously paid a like sum to the Secretary of the Treasury to be applied upon obligations of the French Government held by the United States. As a result of this application, the indebtedness of France to the United States Government was reduced in a like amount, by applying $15,265,504.26 as a payment on account of the principal of the obligations of the French Government held by the United States, and $1,429,559.65 as a payment of the accrued interest to date of payment on said sum of $15,265,504.26. I t will be noted that in carrying out this transaction no funds passed out of the United-States Treasury, but that its effect was to adjust accounts as between the United States, the Italian, the French, and the British Governments. The remaining $18,226,128.82 of the balance of credit in favor of the Italian Government, above mentioned, was withdrawn on March 30, 1921. The balance of the credit in favor of the Government of the Czecho-Slovak Eepublic is part of a credit which was granted for the purpose of assisting that Government to repatriate its troops from Siberia. The movement of these troops was carried on by the W a r Department and the United States Shipping Board and has now been completed, but the exact amounts owing these Government agencies by the Czecho-Slovak Government have not as yet been determined. When the advances are made to the Czecho-Slovak Government for the purpose for which the credit was established the funds will be paid over by the Czecho-Slovak Government to the War Department and the United States Shipping Board in payment for the services rendered in connection with the movement of these troops. I t will be noted that if any money is advanced by the Treasury to the Czechoslovak Eepublic it will be returned to other agencies of this Government. I t is not expected that the liabilities incurred by the movement of these troops \ will require advances from the United States to the extent of the entire balance of the credit. The credits in favor of Greece were established pursuant to a special agreement made early in 1918 under which the United States, Great Britain, and France undertook to lend to the Greek Government for specified purposes, in equal shares in their respective cur- 39 SECRETARY OF T H E TREASURY. rencies, up to the equivalent of 250,000,000 francs each. I t is not contemplated that any advances will be made on this account by the United States. The credit in favor of Liberia was established only for specific purposes. The balance of this credit was withdrawn'on November 4, 1921. The following statement shows the credits established under the Liberty bond acts (after deducting credits withdrawn) and the cash advanced thereunder, as at the close of business on November 15, 1921: Country. Belgium Cuba 'Czechoslovakia France Great Britain Greece Italy. Liberia Roumania Russia Serbia Total Credits established (net). Other charges Cash advanced. against credits. $349,214,467.89 10,000,000.00 67,329,041.10 2,997,477,800.00 4,277,000,000.00 48,236,629.05 1,648,034,050.90 26,000.00 25,000,000.00 187,729,750.00 26,780,465.56 $349,214,467.89 10,000,000.00 61,256,206.74 2,997,477,800.00 4,277,000,000.00 15,000,000.00 1,648,034,050.90 26,000.00 25,000,000.00 187,729,750.00 26,780,465.56 9,636,828,204.50 9,597,518,741.09 .33,236,629.05 Balance under established credits. $8,072,834.36 $33,236,629.05 6,072,834.35 Of the foregoing advances there have been repaid up to November 15, 1921, b y British Government French Government Roumanian Government Belgian Government Cuban Government Serbian Government : $110,\^81, 641. 56 46,714,861.81 1, 794,180. 48 1, 522, 901. 66 1, 425, 000. 00 605, 326.34 ___: .. Total repayments of principal 162, 748, 911. 85 Of these repayments of principal the following were made during the period beginning November 16, 1920, and ending November 15, 1921: Belgium €uba —_France Great Britain Total ^ —^ ^ ..-1 $1, 512, 901. 66 925,000. 00 15,265, 504.26 30, 500,000. 00 48, 203, 405. 92 The repayments made by the British Government during the past year are on account of the obligations of that Government which are regarded as having been given for purchases of silver under the Pittman Act, all in accordance with the special agreement which was made regarding such obligations. 40 REPORT ON T H E FINANCES. On June 28, 1921, a. general settlement between the State, War, and Navy Departments and the French Government of mutual claims growing out of the war was completed. Fmxding legislation. After careful consideration of the authority vested in the Secretary of the Treasury to deal with the foreign obligations held by the United States, it seemed clear that additional legislation was needed in order that this important problem might be dealt with on a satisfactory and business-like basis. On June 21, 1921, the following letter was accordingly written b}^ the Secretary to the President of the United States: J U N E 21, 1921. M Y DEAR Mil. PRESIDENT : I desire to. call to your attention the situation respecting the m a t t e r of the refunding of the debt of foreign Governments to t h e United States arising out of the European W a r . This debt as now held, summarized, is as follows: Obligations for advances made under the various Liberty bond acts ^ $9, 435, 225, 329. 24 Obligations received from the American relief administra tion. 84, 093, 963. 55 Obligations received from the Secretary of W a r and from the Secretary of t h e Navy on account of the sale of surplus w a r materials 565,048,413.80 Obligations held by the United States Grain Corporation 56, 899, 879. 09 Total 10,141, 267, 585. 68 Annexed hereto a r e statements showing in detail the obligations above referred to, giving, as to each class, the amount owing by each country and, in the case of loans from the proceeds of Liberty loan bonds, the amount thereof loaned from the proceeds of the first Liberty loan bonds and the amount from subsequent Liberty loan bonds. F r o m this statement it will be seen t h a t the obligations in respect of loans from' the proceeds of Liberty bonds a r e all demand or overdue obligations, while the other classes ref<2fred to m a t u r e a t various dates, beginning J u n e 30, 1921, and extending to August 1, 1929. The obligations mentioned as being held by the United States Grain Corporation were received by t h a t corporation from foreign Governments on'account of the sale of flour under the act of March 30, 1920. As they may at any time be turned into the United States Treasury, and some of them m a t u r e on J u n e 30 next, they a r e included here so t h a t they may be dealt with along with other like obligations. F r o m the statement, it will also be seen t h a t the obligations of the various classes named are largely owing by the same d e b t o r s ; t h a t is to say, this Government in the refunding of the various classes of these obligations will, to a considerable extent have to deal with the same Governments. I am advised that, except as to the advances made out of the proceeds of Liberty loan bonds, this department is without a u t h o r i t y to consent to any extension of the time for payment of the principal or of t h e interest of tbese obligations or to proceed with the refunding thereof. As to the advances made oiit of SECRETARY OF THE TREASURY. _ 41 the proceeds of Liberty loan bonds, the existing authority contains such diverse provisions as to interest rates, the maturity and other terms of the refunding bonds that may be accepted by the department as makes it difficult to formulate, a plan whereby the interests of this Government may be as well protected and the bonds to be received be in as desirable form as would be the case if the entire debt of each country could be dealt with as a whole and free from such restrictions. In some cases the debtor nations owe large amounts to other countries as well as to the United States, and it may be advisable, and in some cases indeed necessary, to consider comprehensively the entire debt of such countries, its financial condition and resources, so as, to work out a refunding plan reasonably within the ability of such c'ountry to carry out. In the case of some of the debtor countries it is impossible for them to make payment of their obligations as they now mature. It is impossible for some of them to make payment of the maturing interest. To insist on payment might be disastrous to the peoples of such countries; and besides there may have to be given consideration to the bearing of the adverse foreign exchange rates existing at the time against these debtor countries and which may make it desirable to defer payment of interest. Under the circumstances I have briefly referred to, it is, I think, clear that by reason of the lack of any authority as to a part of these foreign obligations and the restrictions upon the existing authority as to the others, it is impossible in any refunding, under the varying conditions that exist, to deal fairly with the debtor countries and at the same time protect the interests of this country. To do this it is essential that the department have full authority as to all such foreign indebtedness to determine the form and terms of the settlements and of the refunding obligations, the rate or rates of interest, the maturity dates, and the. right to extend the time for the payment of interest on the indebtedness to be refunded. It is also of importance that the department should have adequate authority to adjust and settle claims against foreign Governments, which are not in the form of bonds or obligations, as for example the claim for costs of our military forces of occupation. I have had prepared a draft of an act of Congress to accomplish the purpose stated and should you transmit this communication to Congress shall be glad to appear before the appropriate committees relative to the situation and the necessity for the authority requested. Faithfully yours, A. W. MELLON, Secretary. The PRESIDENT, The White House. AN ACT To enable t h e refunding of obligations of foreign Governments OAving to the United States of America, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Treasury, with the approval of the President, is hereby authorized from time to time to refund or convert, and to extend the time of payment of the principal or the interest, or both, of any obligation of any foreign Government now owing to the United States of America, or any obligation of any foreign Government hereafter received by the United States of America (including obligations held by the.United States Grain Corporation), arising out of the European War, into bonds orother obligations of such, or of any other, foreign Government, and from time to time to receive bonds and obligations of any foreign Government in substilu- 42 REPORT. ON THE FINANCES. tion for those now or hereafter held by the United States of America, in such form and of such terms, conditions, date or dates of maturity, and rate or rates of interest, and with such security, if any, as shall be deemed for the best . interests of the United States of America, and to adjust and settle any and all claims, not now represented by bonds or obligations, which the United States of America now has or hereafter may have against any 'foreign Government and to accept securities therefor. On June 22, 1921, the President addressed the following letter to the chairman of the Finance Committee of the Senate and the chairman of the Ways and Means Committee of the House of Representatives : JUNE 22, 1921. I am inclosing to you herewith a copy of a letter which I have received from the Secretary of the Treasury relating to the obligations of foreign Governments to the United States which arose out of the World War and our participation therein. The statement is a comprehensive one, showing the detailed obligations which are owing to the United States, and the Secretary points out the urgent necessity of broad powers granted by the Congress for the arrangeinent for the refunding or conversion or extension of the time of payment of principal and interest on these obligations, and the adjustment of other claims of the United States against foreign Governments. All the circumstances sugge,st the grant of broad powers to the Secretary of the Treasury to handle this problem in such a manner as best to protect the interests of our Government. I hope your committee and the Congress will find it consistent promptly to sanction such an act as that which is suggested by the inclosed draft. If the Congress will promptly sanction such a grant of authority the Secretary of the Treasury may proceed to the prompt exercise of the powers granted to him, and we reasonably may expect .a satisfactory handling of the obligations due and the claims of our Governinent which are awaiting settlement. Sincerely, yours, ^ WARREN G. HARDING. Legislation to authorize the funding of the foreign obligations was accordingly introduced in Congress, and a funding bill has now passed the House of Eepresentatives and is pending in the Senate. The international financial situation. The values of foreign currencies as measured in dollars have shown great fluctuations during the year, and this instability, taken in connection with the recession in general business, has been unfavorable to the development of the foreign and domestic trade of this country. I t is not necessary to discuss the many factors which have contributed to this situation. The interdependence of the industry of all nations has been brought out very clearly by the developments since the war. I t is fully understood to-day that the business of the United States depends in part upon the business activity of other nations. The foreign obligations held by the United States, nearly all payable on demand, add to the uncertainty in international trade, particularly between the United States and its debtor nations, and 43 SECRETARY OF THE TREASURY. increase the difficulty of a resumption of credit operations by these" nations in the investment markets of the world. Many of them need capital for reconstruction, the purchase of raw material, and the rehabilitation of their railways and factories. Until their financial position is made clear, their ability to place loans will be affected, their industrial recovery will be retarded, and our own prosperity will suffer. The funding of these demand obligations and placing them in a businesslike form is one of the outstanding needs of the present economic situation. I t is essential that some definite arrangement should' be made as to the terms of payment both of the principal and interest. This is a problem which the country must face and must deal with in a broad, far-sighted wa3^ DOMESTIC CREDIT S I T U A T I O N . The outstanding feature of the credit situation during the past 12 months has been the gradual liquidation of banli loans and the consequent easing of money rates. Loans and investments of both Federal reserve banks and the reporting member banks reached the high point on October 15, 1920, at the peak of the usual autumn demands, and have shown an almost continuous decline since that date, as prices declined and business activity slackened. The liquidation of loans, together with heavy imports of gold, has resulted in a rapid advance in the reserve ratio of the Federal reserve banks and a strengthening of the credit situation generally. The following table shows the changes during the period under review in the loans and investments of reporting member banks and in the condition of the Federal reserve banks: [Amounts in millions of dollars.] Oct. 15, 1920. Jan. 14, 1921. Apr. 15, 1921. July 13, 1921. Nov. 2, 1921. Change from Oct. 15, 1920, to Nov. 2, 1921. Amount. Per cent. Loans and investments of reporting member banks, including rediscounts with the. Federal reserve banks Total earning assets of Federal reserve banks Federal reserve notes in actual circulation '.. Totalreserves of Federal reserve banks Combined reserve ratio of Federal reservc'banks .... 17,284 16,440 ' 15,756 15,051 14,850 -2,434 -14.1 3,422 2,969 2,504 2,000 1,549 -1,873 —54.7 3,353 3,159 2,869 2,604 2,408 - 945 —28.2 2,155 2,289 2,485 2,648 2,946. + 791 + 36 7 42.7 48.1 53.7 61.6 71.0 + 28.3 -f 66 3 The increase in the total reserves of the Federal reserve banks is due almost entirely to the importations of gold. Between October 20, 1920, and November 1, 1921, the imports of gold in excess of exports 44 REPORT ON THE FINA]s^CES. Avere $702,429,000, and an. even larger gain during that period I S shown for the golcl reserves of the Federal reserve banks. The liquidation of loans has not been uniform in the various districts, but has been especially heavy in the industrial districts of the East as contrasted with the agricultural districts. The following table shows the changes in the total earning assets of each Federal reserve bank between October 15, 1920, and November 2, 1921: T o t a l earning assets ^ (in t h o u s a n d s of dollars), A d j u s t e d reserve r a t i o . ' Percent decrease. Reserve bank. O c t . 15, 1920. N o v . 2, 1921. O c t . 15, 1920. N o v . 2, 1921. Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. L o u i s . . / . . . . MinneapoUs K a n s a s City Dallas San F r a n c i s c o . . S179,229 1,138,773 201,166 152,879 151,466 189,312 585,254 175,425 117,195 173,962 121,558 235,757 .S72, 111 311,001 119,7&3 141,130 112,909 134,052 2.30,826 74,032 76,404 91,496 67,676 118,039 59.8 72.7 40.5 7.7 25.5 29.2 60.0 57.8 34.8 47.4 44.3 50.0 67.0 36.9 59.6 78.5 33.9 17.8 36.7 21.1 21.4 19.3 13.8 ' 45.1 84.7 83.5 •70.8 70.1 40.2 32.8 -71.6 66.5 40.1 48.6 31.6 72.2 • All b a n k s 3,421,976 1,549,459 54.7 42.7 71.0 1 Before interbank borrowing. The low reserye percentage of four of the Federal reserve banks, Richmond, Atlanta, Minneapolis, and Dallas, reflects the continued heavy credit demands in those districts. These Federal reserve banks have found it necessary to secure assistance from the Federal reserve banks in industrial districts by rediscounting, in order to meet the unusual demands for credit and at the same time prevent their reserves from falling below the legal minimum. The amount of such rediscounts on November 2, 1921, was $27,669,000. The improvement in the credit situation earlier in the year and the attitude of the Federal Reserve Board toward agricultural credits were discussed in a public statenient issued by the board on June 6, 1921, which read in ]Dart as follows: It is the opinion of the Federal Reserve Board that the country is approaching a new crop season with underlying conditions far sounder than they were a year ago. While there are still large amounts of staple products being carried over, financed partly on bank credit, the reserves of the 12 Federal reserve banks combined are nearly 40 per cent higher than they were at this time last year, standing at about 57.5 per cent as against 42 per cent. There is no ground for apprehension regarding the abiUty of the banks to meet the requirements of both agriculture and industry. The Federal reserve system now holds the largest amount of gold in its entire history, more than $2,400,000,000, and the inflow ti^om other countries still continues. While the loans and invested assets of the Federal reserve banks have been reduced^ since the peak on November 5 last by more than $i,000,000,000, most of this liquidation has come about in an orderly and natural SECRETARY OF TH;E TREASURY. 45 way. Liquidation has been most pronounced in financial and industrial centers . rather than in agricultural sections, as is evidenced by the fact that while the rediscounts held by the Federal reserve banks are materially less than at this time a year ago, these banks are now carrying more than twice as much agricultural and live stock paper (maturities from 90 days to 6 months) as they had on hand a year ago. It should be understood that until there is a broadening of the market for agricultural products many farmers will ha-ve to be granted extensions on loans already made them and will, in many cases, require additional credits pending the making and marketing of the new crops. The Federal Reserve Board is gratified to know that the Federal reserve banks are prepared to extend liberal credits to member banks, and through them to nonmember banks, for these and. other productive requirements of their customers, and the board urges all banks to aid in easing along the situation in the agricuUural districts until normal and regular processes of production and distribution can be further developed. The board feels that the financial emergency which menaced the country during the year 1920 has definitely passed. There is, however, in some sections a situation which affects seriously producers of some highly essential products. In the stock-raising industry, particularly, additional credit facilities are urgently needed. Live stock paper running not longer than six months is eligible for rediscount at Federal reserve banks, and loans for the purpose of feeding and fattening cattle are, therefore, more easily obtained than the longer time loans for breeding cattle and young calves. The banks of the country are urged to bear in mind the needs of the live stock industry and to extend as liberal accommodations to those engaged in the industry as circumstances will permit. With reference to the credit situation in the cotton districts, a special meeting of the board and the governors of the Federal reserve banks of those districts was held, and the following statement issued by the board on July 20, 1921: In view of the vital importance of the problems incident to the harvesting and marketing of the coming cotton crop, the Federal Reserve Board to-day held a conference with the governors of the Federal reserve banks of Richmond, Atlanta; St. Louis, Kansas City, and Dallas, the banks located in or hrought in closest touch with the member banks in the cotton States, for the purpose of reviewing the credit situation in these States and determining what further credit will be needed to facilitate the harvesting and orderly marketing of this crop. At the present time the five reserve banks in question are lending to their members $457,000,000, or more than 26 per cent of the loans of the entire system, the Richmond bank borrowing from other reserve banks $20,000,000 and the Dallas bank borrowing $16,000,000 for that purpose. The total loans of these five reserve banks to their member banks exceed their reserve deposits by $192,000,000, whereas the reserve deposits of the other seven reserve banks exceed their loans to their members by, $118,000,000. . The amount now loaned by these reserve banks to their members is four and one-half times the amount borrowed at any one time by all the national banks of the country prior to 1914, or before the establishment of the Federal reserve system. 46 REPORT ON THE FINANCES. The Federal Reserve Board and the governors of the Federal reserve banksannounce that the Federal reserve banks, in addition to credits already extended, are.able and stand ready to extend further credit for the purpose of harvesting and marketing the coming crop, in whatever amount may legitimately be required, either directly to their member banks or, under a ruling now issued by the Federal Reserve Board; indirectly to nonmember banks^ acting through the agency and with the indorsement of a member bank. These loans will be made by the Federal reserve banks upon notes, drafts, and billsof exchange issued or dra\yn in accordance with the terms of the Federal reserve act and the regulations of the Federal Reserve Board, for the harvesting or orderly marketing of the coming cotton crop. In order, however, that these rediscount facilities of the Federal reserve . banks may be made fully effective it will be necessary that member banks in the cotton States place their loaning facilities freely at the disposal of cotton' producers and dealers in their respective localities with the knowledge and assurance that the Federal Reserve Board and the Federal reserve banks recog-" nize the urgency of rendering all proper assistance to these important interests during such abnormal times. Mr. Meyer, managing director of the War Finance Corporation, who attended the conference, reviewed the activities of the War Finance Corporation in making loans for financing cotton for immediate and future export. Gov.-Strong, of the Federal Reserve Bank of New York, and representatives of certain New York member banks were also invited to the conference to discuss the necessity or advisability of having various commercial banks through the country establish a fund for the purpose of making loans upon cotton. In view of the conclusions reached by the conference as to the ability of the Federal reserve banks effectively to take care of all of the legitimate requirements of the cotton interests, it was felt that the establishment of such a fund at this time is neither necessary nor advisable. Gov. Strong stated, however, that he had received assurances from a number of important banking institutions in New York City that if the facilities now offered by the Federal reserve banks and the War Finance Corporation should prove to be inadequate, they will cooperate in the establishment of a cotton loan fund in whatever amount the situation might demand. Many cattle growers were finding it difficult to meet their obligations on account of the heavy decline in the price of live stock, and it was seen early in the summer that the future cattle, supply was in danger of being depleted through the marketing of breeding cattle and young calves. On the initiative of the Secretary of the Treasury conferences were therefore held between representa tives of the Federal Reserve Board and the Federal reserve banks, commercial bankers from the financial centers and the agricultural and live-stock districts, and representatives of the agricultural Senators to discuss methods of relief in the way of further extensions of credit. As a result the Stock Growers' Finance Corporation was organized, with headquarters in Chicago, for the purpose of supplying $50,000,000 of live-stock loans through bankihg channels. I t is understood that this corporation has been engaged in making actual loans since the week beginning J u l y 11. The following public statement was made by the Stock SECRETARY OF THETREASURY. 47 Growers' Finance Corporation on July 12,1921, with reference to the type of loahs which would be made: JULY 12, 1921. GENTLEMEN : AVe are pleased to announce that this organization is ready to receive applications for rediscount from banks and cattle loan companies who file with the corporation a satisfactory financial statement. Loans offered must be secured by mortgage on live stock, showing a substantial equity in value over the amount advanced, and all loans must be , accompanied by the. following: Report of an inspector showing number and quality and his estimate of the value of the security; original chattel mortgage or certified copy showing recorder's certificate; ofliice copy of the chattel mortgage (need not be certified) ; financial statement of the maker of the paper and abstract of the records. All loans must be eligible for rediscount with the Federal reserve banks, and the papers should be prepared accordingly. On all notes, the last as well as all previous indorsements must waive demand notice and protest. Loans will be accepted with date of maturity running six months or less, and if found satisfactory will be extended or renewed for periods of six months or less, not exceeding a total length of time of 30 months from date of loan, at which time payment will be required. Please submit applications for loans a few days in advance of the need for the money, giving sufficient time for our organization to act on applications intelligently. Not having the organization to properly inspect and investigate loans, and recognizing that the situation requires that the funds be made available promptly, the policy of making no direct loans has been adopted. The rate of discount to be charged for the present is fixed by the executive committee at 7 per cent. Many banks who have never handled live stock loans are participating in this movement to assist the live stock interests and not just to relieve the banks and loan companies; therefore, it is expected that the banks and loan companies will use the privileges of the organization freely, and having been provided a method to carry this class pf loans, they will continue their efforts to support the industry by making new loans. We feel if this policy is faithfully carried out, satisfactory results will immediately follow, and to that end we ask the cooperation of the friends of the live stock industry. All correspondence should be addressed to the Stock Growers'/Finance. Corporation, room 1054, Continental & Commercial Bank Building, Chicago, 111. Yours truly, STOCK GROWEKS* FINANCE CORPORATION. M. L. MCCLURE, President. In view of the general agricultural situation Congress passed an act, approved August 24, 1921, broadening the powers of the War Finance Corporation so as to enable it to extend further relief to agricultural and live-stock producers. A discussion of the operations under this act will be found elsewhere in this report, in the article entitled " The War Finance Corporation and its activities," beginning at page 49. As a result of easing credit conditions there has been a gradual but substantial decline in money rates since the beginning of this year. The ruling rate in the New York market for four to six 48 REPORT ON TFIE FINANCES. months commercial paper at the present time (Nov. 1, 1921) is 5^ per cent as compared with 8 per cent at the beginning of the year. During the same period the rate for 60 to 90 day bankers' acceptances has declined from 6^ per cent to 4f per cent, and call money is now ruling around 4^ to 5^ per cent as against 7 to 8 per cent a year ago. The following table gives the range of rates each month since October, 1920, for call loans, commercial paper, and bankers' acceptances on the New York market: 4 to 6 months' com- 60 to 90 days' bankmercial paper. ers'acceptances. Call loans. Date. High. 1920. October ISfovember December January February March April May June July August September October Low High. Low • High. Low. 10 10 7 6i 6J 1921. 5f - f : 5 , Period 3^ 5| 6i ^ Lower commercial money rates have been reflected in a lowering of the discount rates of the Federal reserve banks. The changes which have occurred in the rates on commercial paper are as follows: Bank and date of changes. Boston: Apr. 15 July 21 Sept. 23 Nov. 4 New York: May 5 June 16 July 21 • Sept.22.. Nov.3 Philadelphia: July 2 1 . . . . . . . . Nov.3 Cleveland: Aug. 8 Nov. 7 Richmond: Nov. 3 Atlanta: May 6 Nov.2 Rate Nov. 7, High. 1921. 1" } 4^ 7 «'• 6 } ^ 5^ } 7 5, 6 6 7 Bank and date of changes. Chicago: May 7 July 3 0 . . . . .Nov.3 St. Louis: Nov. 3 . . . . Minneapolis: May 10 Oct. 5 Nov. 7 Kansas City: Nov. 2. Dallas: May 16 June 25 Nov. 4 San Francisco: July 25 Nov.2 Rate Nov. 7, High. 1921. 5^ SECRETARY OF T H E TREASURY. 49 TELE WAR FINANCE CORPORATION AND ITS ACTIVITIES. The War Finance Corporation, which in March, 1919, was authorized to make advances to American exporters and American banking institutions to assist in financing exports of domestic products, resumed operations in January, 1921. Its activities had been suspended in May, 1920, at the request of the then Secretary of the Treasury, but the Congress, on January 4, 1921, adopted a joint resolution, over the President's veto, directing the Secretary of the Treasury to revive the activities of the corporation with the view of assisting in the financing of the exportation of agricultural and other products to foreign countries. The text of the resolution was as follows: T h a t ,the Secretary of the T r e a s u r y and the members of the W a r Finance Corporation are hereby . directed to revive the activities of the W a r Finance Corporation, and t h a t said corporation be a t once rehabilitated with the view of assisting in the financing of tbe exportation of agricultural and other products to foreign countries. , I n view of the wording of the resolution and in order to relieve the situation which confronted the agricultural industry, the directors of the corporation concentrated their energies largely on agricultural products. As the authority of the corporation was then confined to export financing, and as the^great American agricultural product exported is raw cotton, they turned their attention first to this important factor in the American economic structure. Meetings with representative bankers and exporters were held in Washington, Atlanta, New Orleans, and New York to consider the bestmethods of finaiicing, exports of cotton on credit. But it soon became clear that a change had coine over the European buyer. .He was no longer anxious to buy on credit, as he had been after the armistice and up to the latter part of 1920, He had suffered heavy losses in connection with purchases on credit as a result of the depreciation and the fluctuations in exchange, and he no longer desired to buy on that basis. Kecognizing the changed situation, the corporation offered, as a first step, to make advances to exporters for the purpose of carrying stocks of American cotton in foreign warehouses, and some advances were made for this purpose. While this action proved to be helpful, it was soon found that it did not meet the situation in an adequate way. I t was then decided to make advances on cotton stored in America which was under contract for sale to foreigners, but applications for such advances were not filed on a sufficiently large scale to become an important factor. Finally, at the beginning of July, the corporation approved an application of a cooperative association in Mississippi to finance the 70073—FI 1921 4 50 REPORT ON T H E FINANCES. carrying of 100,000 bales of long-staple cotton for export. By the terms of the advance the association agreed that, out of the 100,000 bales pledged as security for the loan, it would export within one year a sufficient quantity to repay the full amount of the advance out of the proceeds of export sales—the cotton to be held in American warehouses until the time was opportune for export. The announcement of this transaction created considerable interest, and was followed by applications from other cooperative organizations in Texas, Oklahoma, and Arizona, as well as from banking institutions in the South, for assistance in financing large quantities of cotton for export in a similar manner. In all these transactions the greatest care has been taken to insure the use of the funds advanced by the corporation solely for the purpose of orderly marketings without encouraging holding for speculative purposes. The assistance rendered by the corporation undoubtedly has been an important factor in the recent improvement in the market for cotton. In all, the corporation has agreed to finance approximately 1,000,000 bales, largely of the new crop, involving approximately $60,000,000. While, this sum is relatively small in comparison with the total value of the crop, nevertheless the assurance of financial assistance gave confidence to the manufacturer and the dealer, and also to the banks which make loans upon cotton as collateral security. As soon as there was confidence that the industry would be adequately financed, the buyers came into the market, both at home and abroad, with marked effect on the price of cotton and of cotton goods. It is, of course, not within the province of the War Finance Corporation to conduct its business with the view of affecting prices. But it is its duty to offer adequate financing on a sound basis; and,, if prices are depressed because of inadequate financing rather than because of inadequate demand, it would be natural for prices to be affected favorably by providing financing where it has been lacking. It must always be remembered, however, that financing will not stimulate prices where the demand does not exist. Perhaps it should be pointed out here that the service rendered by the War Finance Corporation can not be measured by any mere statement of its advances. Entirely aside from the dirjcct aid given by the corporation through the exercise of its powers and the application of its funds, it is rendering a service and exerting an influence which is exceedingly helpful from a psychological point of view. Its very existence, with the large funds at its command, has tended to inspire confidence and to facilitate the financing of transactions through ordinary banking channels. In many cases advances authorized by the corporation have not been consummated because the applicants, strengthened by the assurance of aid from the corporation, have been able to handle their business in other ways. In fact^ SECRETARY OF THE TREASURY. 5l its experience has been that wherever it loaned, or agreed to loan, a dollar, it produced confidence to such an extent that others were willing to advance many dollars. The activities oi the War Finance Corporation under its export powers have not been confined to cotton. I t agreed to make large advances to cooperative associations in the Northwest on wheat intended for export, on (Jried fruits and on canned fruits and vegetables to cooperative associations in California, on tobacco to exporters and banking institutions, and on condensed milk and meat products to banking institutions. I t has also approved a limited number of applications inv[)lving the exportation of railroad equipment, copper, and sugar-mill machinery. The loan, to the cooperative association in Mississippi on cotton marked the adoption of a | new policy which proved to be exceedingly helpful. But it became increasingly clear that further action was needed to meet the new situation that had arisen in our foreign and domestic trade. The necessity of selling our staple agricultural products more gradually than we did in former years, and the corresponding necessity of carrying our commodities here in America in larger quantities for a longer period of marketing, became more and more apparent. This is strikingly illustrated by our cotton exports. In the cotton year 1910-11, 81 per cent of the exports for the entire year was concentrated in the six months from September to February, inclusive. In 1919-20, only 51 per cent of the exports for the entire cotton year was forwarded during the same months. This means that we must carry forward into the second six months of the crop year 1,500,000! to 2,000,000 bales which formerly were exported during the first six months. And the same conditions were found to exist with reference to our other products, both agricultural and manufactured. I n other words, it was thcpractice of European countries before the war to purchase and finance the greater part of their requiifements for the year within a few months immediately following the harvest. Now this situation is changed, and foreign merchants and manufacturers do not wish to buy on a large scale on a credit basis because of the risk involved in exchange fluctuations. These fluctuations, actual and potential, have made them reluctant to contract ajhead for goods which are to be paid for in dollars, but which they will have to sell in manufactured, or even in raw form, in terms of foreign currency. This statement is confirmed not only by information received from American bankers and business men returning from Europe but also by reports from representatives of the Department of Agriculture who were sent abroad to investigate the markets in Europe for American agricultural products. 52 REPORT ON T H E FINANCES. Inquiries have also developed the fact that our own merchants and manufacturers were operating on.'the basis of the lowest possible stocks and were buying only to supply current demands. This naturally resulted in forcing large quantities of raw materials, which normally are carried by mills, wholesalers, jobbers, and retailers, back upon the original producers and the couritry banks which do their financihg. The producers were unable to market their products as rapidly as formerly, and there was thus brought, about a condition of acute distress in the agricultural sections of the country. I t became essential, therefore, that additional provision be made for the financing of agricultural commodities until they could be marketed in an orderly way. After long and careful study of the whole problem, the W a r Finance Corporation proposed certain amendments to the original act which were designed to accomplish this purpose. These amendments were embodied in what is known as the agricultural credits act, approved August 24, 1921. The act broadened the powers of the corporation, and gave it authority to make advances not only to exporters and banking institutions but also to dealers in, and handlers of, agricultural products, including cooperative associations, for the purpose of financing the carrying of such products until thiey can be exported or sold for export in an orderly manner. Such advances may be made until July 1, 1922, for periods not exceeding one year, but the time for payment may, in the discretion of the corporation, be extended for periods not exceeding three years from the dates upon which the advances were originally made. The corporation also is authorized to make advances to persons, firms, or corporations outside of the United States who purchase our agricultural products, on condition that all notes or other instruments evidencing such advances " shall be in terms payable in the United States, in, currency of the United States, and shall be secured by adequate guaranties or indorsements in the United States, or by warehouse receipts, acceptable collateral, or other instruments in writing conveying or securing marketable title to agricultural products in the United States." The act also empowers the corporation, whenever in the opinion of the board of directors the public interest may require it, to make advances to any bank, banker, or trust company in the United States, or to any cooperative association of producers, which may have made advances for agricultural purposes, including the breeding, raising, and fattening of live stock, or may have discounted or rediscounted notes, drafts, bills of exchange, or other negotiable instruments issued for such purposes. Such advances may be made for periods not exceeding one year, with discretion in the War Finance Co?'poration to renew them for a total period of not to exceed three SECKETARY OF. THE TREASURY. • 53 ^ years from the dates of the original advances. I n exceptional cases the corporation is authorized to purchase from banks, bankers, or trust companies paper secured by agricultural products, including live stock; and it is further authorized to purchase, sell, or otherwise deal in acceptances, adequately secured, issued by Edge law banking corporations, to assist them in promoting the exportation of agricultural and manufactured products. The aggregate amount of advances made and paper purchased and outstanding at any one time is limited to $1,000,000,000, and the corporation is authorized to issue its bonds to the extent of three times its capital stock, or $1,500,000,000.' The phrase "bank, banker, or trust company," as used in the act, inciudes " any reputable and responsible financing, institution incorporated under the laAvs of any State or of the United States with resources adequate to the undertaking contemplated." After the passage of the act, steps were taken b}^ the corporation / t o establish the necessary machinery for its prompt and effective administration. Circulars giving full information regarding the procedure to be followed in making advances, and the requirements of the corporation in connection therewith, were.published and given wide distribution.- They provide that applications arising under sections 21 and 22 of the act, which relate to export transactions, as Avell as applications from cooperative associations, shall be submitted direct to the corporation., at Washington for consideration. To facilitate the handling of advances to banks, bankers, and trust companies for agricultural purposes, under section 24 of the act, and to afford the necessary assistance as quickly as possible, the corporation decided to appoint committees in the principal agricultural and live-stock sections of the country, whose chief duties would be to consider applications in the first instance, pass upon the collateral offered, and submit their recommendations to the corporation at Washington for reviev/ and final action. The committees, Avhich are composed of bankers and business men Avho serve without compensation, were organized as promptly as the members could be selected and appointed, and in a short time they were ready to function. Each commiittee was authorized to employ a secretary who would devote his entire time to the work, and to establish headquarters, designated as the agricultural loan agency of the War Finance Corporation, in the city which ordinarily serves as the financial center of the surrounding territory. Forms of application and other necessary documents were prepared by the corporation and were furnished not only to the committees but also t o the Federal reserve banks and their branches. 54 REPORT ON T H E FINANCES. In order to obtain first-hand information regarding agricultural conditions in the West and to expedite the administration of the new act, the managing director of the corporation, during September, visited Chicago, Minneapolis, Helena, Spokane, Portland, San Francisco, Los Angeles, Salt Lake City, Cheyenne, Denver, Hutchinson, Kans., Kansas City, Omaha, and Des Moines. A t each of these places he conferred with the committees and met representative groups of business men, bankers, stockmen, farmers, and others. He explained fully to them the new powers granted to the corporation by the Congress and its plans for their administration. At practically every point the managing director's attention was directed particularly to the seriousness of the live-stock situation, and it was urged that immediate action, be taken to stop the sliipment of immature stock to the market and to save the breeding herds. On account of the situation confronting many of the small banks in the West, and the limitations or restrictions imposed upon them by State laws, it was clearly apparent that additional financing machinery should be provided to meet, in a satisfactory way, the needs of the live-stock industry. The matter was thoroughly canvassed with the committees and others in the various places, and Utah, Wyoming, Colorado, Kansas,, and New Mexico, following the visit of the managing director, decided to form compa;nies with capital aggregating $1,900,000 to make live-stock loans in their respective territories in cooperation with the. W a r Finance Corporation. At a meeting in Fort Worth, Tex., on October 12, citizens of the State decided to organize a company, with large capital, to make live-stock loans in Texas and adjoining States. Subscriptions amounting ttj $950,000 were promptly pledged, and it is hoped to bring the total up to $1,500,000. Similar companies, with substantial capital, are in the process of formation or under consideration in other States, including Oklahoma, South Dakota, Idaho, Montana, Oregon, and Arizona. Through the organization of these companies, supplementing the facilities afforded by existing loan companies and banking institutions, the corporation undoubtedly will be able to make its funds available throughout the live-stock sections of the country promptly on a large scale. At the time of this report the machinery for the administration of the agricultural credits act is in full operation. The agricultural loan committees in the various sections of the country are functioning actively and large numbers of applications are being received. Many loans already have been announced and there is every indication that, with the whole-hearted cooperation of public-spirited citizens and business men which the corporation is receiving everywhere, it will accomplish a great deal toward bringing about more stabilized conditions in the agricultural industry. SECRETARY OF THE TREASURY. 55 The following table shows the advances approved by the corporation from January 4,1921, to November 15, 1921: 1. Export advances approved by War Finance Corporation: Cotton $47, 527, 598. 00 Tobacco 1 2,399, 369. 00 Wheat-— — • 11, 500, 000.00 Condensed milk i.—. 1,000,000.00 Canned fruit and vegetables 400,000.00 Dried fruit 1,250, 000. 00 Meat products 1,000, 000.00 Railroad equipment 2,925,000. 00 Copper . 145,600. 00 Sugar-mill machinery . 317,140. 00 Agricultural machinery _ :— 500,000.00 Total.- - 1 - 68,964, 707. 00 2. Advances for agricultural purposes approved by War Finance Corporation: Wheat — : 15,000,000.00 Cotton .>_^ 13, 025,214. 50 Live stocli 5, 920,016. 89 General agricultural purposes— 16,172,844. 82 Total 50,118, 076. 21 Grand total 119,082, 783.21 Of the total amount, $6,052,882.53 represents advances to exporters, $63,700,000 to cooperative associations, and $49,329,900.68 to banking" institutions. These figures, of course, represent only advances approved by the corporation and do not include many transactions now in the process of negotiation. Furthermore, it must be remembered that the agricultural credits act did not become law until August 24. As the act is nation-wide in its application, some time necessarily was required to set up the machinery for its administration. With the completion of the task of organization, it is to be expected that there will be a large and steady increase in the usefulness of the corporation, especially in connection with advances for agricultural purposes under section 24. SOLDIERS' BONUS. The Treasury's position with regard to the soldiers' bonus or so-, called adjusted compensation for veterans of the war, has been set forth in the Secretary's letter of July 2,1921, to Senator Frelinghuysen in response to Senator Frelinghuysen's letter of June 24, 1921, which requested the views of the Treasury as to S. 506, " to provide adjusted compensation for veterans of the World War," with par- 56 ' REPORT ON T H E FINANCES. ticular reference to the financial obligations it Avould have entailed. These letters are included herein as Exhibit 33, page 228. The position of the Pre»^ident in. regard to the soldiers' bonus was subsequently stated in a special message to the Senate, dated July 12, 1921, which is set forth herein as Exhibit 34, page 232. Conditions have not changed since the Secretary's letter and the President's message, and the Treasury's attitude remains the same. Even without any soldiers' bonus or adjusted compensation, the estimates show that the Federal Government will spend in the fiscal year 1922, and again in the fiscal year 1923, about $450,000,000 a year for the relief of veterans of the late war. . . SECURITIES OWNED BY T H E U N I T E D STATES GOVERNMENT. The aggregate amount of securities oAvned by the United States Government on June 30, 1921, as reported to the Treasury and shown in detail on page 210, Exhibit 26, was $11,326,731,680.72, as against a total of $11,101,589,306.30 at the close of the previous fiscal year, a net increase of $225,142,374.42, w.hich is due principally to the increase of $210,510,003.67 in the obligations of carriers acquired through loans to railroads from the $300,000,000 revolving fund provided in section 210 of the transportation act, approved February 28, 1920, a^ amended, and the increases in Federal land bank bonds and miscellaneous securities. The securities owned on June 30, 1921, for descriptive purposes, may be divided into five general classes, namely, o ( l ) ' f o r e i g n obligations, $10,083,917,206.59, principal amount; (2) capital stock of war emergency corporations, $268,550,376.57, par amount; (3) railroad securities, $680,438,653.67, principal amount; (4) Federal land bank securities, $189,735,675; and (5) miscellaneous securities, $104,089,768.89. The foreign obligations, amounting in the aggregate to $10,083,917,206.59, include (a) loans to foreign Governments under the authority of the acts approved April 24, 1917, and September 24, 1917, as amended (on the basis of cash advances less repayments of principal), $9,434,774,829.24; (h) foreign obligations received from the Secretary of W a r and the Secretar}^ of the Navy on account of sale of surplus war supplies, $565,048,413.80; and (c) foreign obligations received from the American relief administration on acco tint of relief, pursuant to the act approved February 25, 1919, $84,093,963.55. The total of these obligations on June 30, 1921, was $8,136,916.14 less than on June 30, 1920, due, principally, to the net excess of repayments of foreign Governments on the principal of their obligations, pursuant to special agreements, or on adjustment of accounts. The war emergency corporation stock owned by the United States, amounting in the aggregate to $268,550,376.57, includes the capital SECRETARY OF THE TREASURY. 57 stock of the .Emergency Fleet Corporation, the Housing Corporation, the Sugar Equalization Board, the United States Grain Corporation, and the W a r i^inance Corporation. The total decrease in this class of securities during the fiscal year 1921 was $122,032,000, due to a reduction of $100,000,000 in the capital stock of the United States Grain Corporation effected August 20, 1920, and an increase of $22,032,000 in the balance to the credit of the War Finance Corporation with the Treasurer of the United States, which is used in the statement as an offset against the amount of the outstanding capital stock of this corporation. The railroad securities, amounting in the aggregate to $680,438,653.67, consist of (a) the obligations of carriers acquired under section 7 of the Federal control act approved March 21,1918, as amended (exclusive of obligations of carriers acquired by the Director General of Eailroads from the operating revenues of carriers under the provisions of section 12 of the above-mentioned act), $64,097,250; (6) equipment trust gold notes acquired by the Director General of Eailroads pursuant to the Federal control act "of March 21, 1918, as amended, and the act approved November 19,1919, to provide for the reimbursement of the United.States for motive power, cars, and other equipment ordered for carriers under Federal control, $311,260,300; (c) obligations of carriers acquired pursuant to section 207 of the transportation act approved February 28, 1920, as amended, on account of Federal control, $89,506,500; and (d) the obligations of carriers acqtiired pursuant to section 210 of the transportation act approved February 28, 1920, as amended (loans to railroads provided from the $300,000,000 revolving fund under section 210), $215,574,603.67.. The holdings of railroad securities increased $235,591,548.67 during the fiscal year, of which aniount $210,510,003.67, as above stated, represents the increased amount of outstanding loans to carriers from the $300,000,000 revolving fund provided in section 210. of the transportation act, 1920, as amended. Since the close of the fiscal year 1921, sales of the 6 per cent equipment trust gold notes of carrier corporations described in (6) above have been made by the Director General of Eailroads up to November 15,1921, in the principal amount of $109,338,800, all at par and accrued interest. The proceeds of these sales, pursuant to section 202 of the transportation act, have been covered into the Treasury to the credit of the appropriation " Federal control of transportation systems," and are available for use by the Director General of Eailroads in connection with the settlement of matters growing out of Federal control. The Federal land bank securities, in the aggregate amount of $1893735,675, consist of (a) capital stock of the 12 Federal land banks still owned by the United States, $6,700,675; and (&) Federal farm 58 REPORT ON T H E FINANCES. loan bonds acquired pursuant to the act approved January 18, 1918, as extended by the joint resolution approved May 26, 1920, $183,035,000. During the fiscal year 1921 repayments were" made by the Federal land banks on their capital stock owned by the United States, amounting in the aggregate to $954,835. The holdings of farm loan bonds increased through purchases $16,650,000 during the fiscal year, and on June 30, 1921, consisted of $136,885,000 of 4^ per cent bonds and $46,150,000 of 5 per cent bonds. The miscellaneous securities, reported, amounting in the aggregate to $104,089,768.89, consist of (a) securities received by the Secretary of W a r on account of sales of surplus war supplies, $23,407,563.16; (b) securities received by the Secretary of the Navy on account of sales of surplus property, $12,906,303.26; and (c) securities received by the United States Shipping Board on account of sales of ships, etc., $67,775,902.47, while at the end of the fiscal year 1920 the total miscellaneous securities were shown as $65,192. This large increase during the fiscal year 1921 represents chiefly more complete reports . from the offices concerned rather than additional securities acquired. The statements of securities owned are necessarily made up from the latest reports received by the Treasury, and when the statement for June 30, 1920, was prepared the Treasury had not then been able to obtain adequate reports from all the departments and agencies of the Government which held the securities. The securities reported by the Treasury as owned by the United States are held in safe-keeping by the Treasurer of the United States and the Federal reserve banks to the extent that they have been turned over to the Treasury. Some^of the securities, however, though reported to the Treasury, are still held by other departments and agencies of the Government, but the amounts so held are relatively small as compared with the total. TRANSACTIONS I N T H E I N T E R E S T - B E A R I N G P U B L I C DEBT OF T H E U N I T E D STATES. During the fiscal year 1921 the interest-bearing debt of the United States was reduced from an aggregate total of $24,061,095,361.36 on June 30, 1920, to an aggregate total of $23,737,352,080.37 on June 30, 1921, a net reduction of $323,743,280.99, of which $9,098,500 became noninterest bearing. Interest-bearing public debt issues for all accounts during the year aggregated $19,412,443,780.10, of which $8,826,500,060.10 were new issues against payments into the Treasury, the remainder being issues against securities surrendered for reissue. Eetirements for all accounts aggregated $19,727,088,561.09, of which $9,141,192,741.09 were retirements against payments by the Treasury, the balance being retirements on-account of reissues. SECRETARY OF THE TREASURY. . 59 During the fiscal year 17 series of Treasury certificates of indebtedness were offered to the public for subscription. Subscriptions amounting to $4,765,586,500 were received for these issues, and an aggregate amiount of $3,439,610,500 was allotted thereon, and certificates issued. Of these issues, $1,406,816,500 were loan certificates and $2,032,794,000 were tax certificates. The amount of the loan and tax certificates outstanding, as shown by the Public Debt Statements, was reduced during the fiscal year 1921 from $2,485,550,500 to $2,450,601,000 or $34,949,500. During the year $43,500,000 special certificates of indebtedness deposited as security for the issues of Federal reserve bank notes under the Pittman Act were redeemed and retired, and the total amount of Pittman Act certificates reduced from $259,375,000 to $215,875,000. One new feature entered into the public debt transactions of the year in the form of an issue of $311,191,600 of Treasury riotes on June 15, 1921. These notes, bearing interest at 5 | per cent and of three years' maturity, were issued pursuant to the Treasury's announced program for dealing with the short-dated debt, with a view to its gradual distribution over the period from 1923 to 1928 in order to facilitate the refunding operations incident to the maturity of the Victory Liberty loan. This subject is more fully discussed at page 3 of this rei)ort. During the year $432,260,550 aggregate par amount of Liberty bonds and Victory notes were retired for various accounts, as follows: 5 per cent bond purchase fund_^ $70,375,300 Cumulative sinking fund _, 261, 250, 250 Purchases from repayments of loans to foreign Governments 73,939, 300 Received for Federal estate and inheritance taxes 26, 527, 200 Forfeitures 38,900 Miscellaneous receipts 129,100 Gifts — ' 500 Total ^ 432, 260, 550 During the year the sum of $60,724,742.27 was received into the Treasury as the net earnings derived by the United States from the Federal reserve banks, as franchise tax, and $60,724,500 of this amount was applied to the redemption of maturing certificates of indebtedness. Pursuant to the provisions of Treasury Department Circular No. 138, dated April 21, 1919, offering the Victory Liberty loan for subscription, the Secretary of the Treasury has declared forfeited all delinquent Victory Liberty loan subscriptions filed with an official agency, together with all payments made thereon and all right and interest in the notes allotted. This forfeiture was declared by Treasury Department Circular No. 239, dated May 11, 1921, attached as Exhibit 54, page 296, under which all forfeited installment payments 60 REPORT ON THE .FINANCES. were covered into the Treasury to the credit of miscellaneous receipts. Delinquent subscriptions of the first, second, third, and fourth Liberty loans had previously been declared forfeited as reported in 1919 and 1920. The conversion privilege accorded holders of Liberty 4's through the extension of the original privilege under authority of section 5 of the Victory Liberty loan act has been exercised during the year through the conversion of $47,819,700 first 4's and $162,137,200 second 4's into 4^ per cent bonds. On June 30, 1921, only $17,982,800 first 4's of an original issue of $568,318,450, and only $77,870,150 second 4's of an original issue of $3,807,865,000 were still outstanding. Eeissue transactions in the public debt Avere extraordinarily heavy during the year, an aggregate par amount of $10,585,944,570 being presented on this account. Eeissue transactions include denominational exchanges, interchanges of coupon and registered issues, conversions, and exchanges of temporary for permanent bonds. The greatest number of transactions has been due to exchanges of temporary for permanent Liberty bonds, 26,086,382 pieces pf an aggriegate face amount of $7,229,952,700 having been exchanged during the year. On June 30, 1921, 3,666,785 pieces of coupon Liberty bonds in temporary form, in the aggregate face amount of $358,758,100, were still outstanding. For details of transactions in the public debt, attention is invited to Exhibits 38 to 52, appearing on pages 243 to 272 of this report. Bonds ^purchased from repayments of, foreign loans. In accordance with the provisions of section 3 of the first Liberty bond act and section 3 of the second Liberty bond act, repayments by foreign Governments on account of the principal of their obligations purchased by the United States under authority of these acts have been applied to the purchase and retirement of Liberty bonds.. During the fiscal year 1921, the sum of $70,706,935.99 was available for expenditure on this account, and a total of $73,939,300 par amount of Libert}^ bonds was purchased at a cost of $70,669,004.88. These purchases were summarized in the following announcement made public by the Secretary of the Treasury on July 25, 1921: The Secretary of the Treasury announces that during the fiscal year ended June 30, 1921, $73,939,300 face amount of Liberty bonds were purchased and retired by the Treasury out of repayments of principal by foreign Governments. These purchases were made pursuant to section 3 of the second Liberty bond act, as amended, which provides that the Secretary of tlie Treasury is authorized to apply any payments received from foreign Governments on account of the principal of their obligations to the redemption or, purchase at not more than par and accrued interest of any outstanding Liberty bonds. The foreign SJiCKETAKY OF THJi TREASUKY. 61 repayments frqm which the purchases in question were made comprise $30,517,633.57 of repayments by the British Government on obligations deemed to have been given on accouht of Pittman silver, and $16,000,000 on other obligations; ^19,302,357.55 by the French Governm'ent; $1,512,901.66 by the Belgian Gov•ernment; $605,326.34 by the Serbian Government; $1,794,180.48 by the Roumanian Government; and $974,500 by the Cuban Government; a total of $70,706,899.60 of repayments. For the most part, these payments were on special account, or by way of adjustment of accounts, and should not be taken to indicate that any generar program of repayment of the foreign obligations has begun. The'Liberty bonds retired on tbis account include $2,145,950 of second 4^'s, :$44,365,550 of tbird 41's and. $27,427,800 of fourth 41's. The total principal cost was $70,669,004.88. Of the bonds retired, .$95,100 of second 4i's, $10,371,900 of third 4i's and $27,,427,800 of fourth 4i's were acquired from the War Finance Corporation, out of bonds purchased at par by the corporation from the United States Railroad Administration pursuant to the requirements of the act of Congress approved May 8, 1920. The follov^ing cumulative table sets forth in summar}^ form the purchases ori this account to June 30, 1921: Title. Par amount. Amount paid. •.Second 4{'s: Fiscal year 1921 T h i r d 4i's: $2,145,950.00 $1, 891, 891.61 Fiscal year 1919 Fiscal year 1920 Fiscal year 1921 7,921,700.00 70,154,950.00 44,365,550.00 7,569,976.52 66,520, 512.76 41,349,313.27 F o u r t h 4i's: Fiscal year 1920 Fiscal year 1921 2, 514,950.00 27,427, 800.00 2, 230,482.32 27,427,800.00 7,921, 700.00 72,669,900. 00 73,939,300. 00 7, 569,976. 52 68, 750, 995. OS 70,669,004. 88 154, 530,900. 00 146,989,976. 48 Total: Fiscal year I 919 Fiscal year 1920 Fiscal year 1921 Grand total All the bonds purchased have been canceled and retired and the public debt reduced in corresponding amounts. Cumulative sinldng fund. The first year's operations under the cumulative sinking fund established by se^ction 6 of the Victory Liberty loan act, approved March 3, 1919, were completed on June 30, 1921.' The sinking fund appropriation for the 3^ear amounted to $256,230,010.66, of which an initial appropriation of $253,404,864.87 became available on July 1, 1920. The additions to the initial appropriation during the year on account of the interest that would haA^e been payaHle during the year on the securities purchased and retired through the sinking fund amounted to $2,825,145.79. Purchases for sinking fund account were confined to Victory notes. During the year $212,100,250 face amount of Victory 4|'s was purchased at a principal cost of $206,968,711.38, and $49,150,000 face 62 . REPORT ON THE FINANCES. amount of Victory 3f's was purchased at a principal cost of $47,875,865.12. . Total purchases aggregated $261,250,250. face amount, and the total principal cost aggregated $254,844,576.50. The unexpended balance of the sinking fund appropriation of $1,385,434.16 on June 30, 1921, was carried over into- the fiscal year 1922 and continues available. All the sinking fund purchases were made in the open market, at the prevailing market prices, through the Federal Keserve Bank of New York and the Federal Eeserve Bank of San Francisco as fiscal agents of the United States. Substantially all of the purchases were made in the New York market, which is the central market for the country, and the purchases in San Francisco were relatively small. All the notes purchased have been canceled and retired, and the public debt reduced in corresponding amount. Further details of the purchases are set forth in the separate report submitted to the Congress on the subject of the cumulative sinking fund as required by law. The purchases were summarized after the close of the fiscal year in the following public announcement on July 11,1921, by the Secretary of the Treasury : The Secretary of the Treasury announces that the first fiscal year's operations under the cumulative sinking fund established by the act approved March 3, 1919, were completed June 30,1921, and that $261,250,250 face amount of Victory notes were purchased and retired for account of the sinking fund during the fiscal year. The total principal cost of the notes purchased was $254,844,576.50. The following statement shows the detailed figures which enter into the expenditures for the cumulative sinking fund for the fiscal years 1921, 1922, and 1923: Expenditures for the sinking fund. FISCAL YEAR 1 9 2 ] . [To nearest one hundred dollars.] Initial credit, July 1, 1920 $253, 404, 900 Secondary credit (unaccTued interest on Victory notes purchased up to June 15, 1921) . 2,825,100 Total amount available for expenditures Total expenditures on account of principal —;. 256, 230, 000 — 254, 844, 600 Unexpended balance^ carried over to fiscal year 1922 1,385,400 FISCALYEAR 1922 (ESTIMATED). Balance forward July 1, 1921 Initial credit July 1,^1921 Total -__. $1, 385, 400 253,404,900 254, 790,300 SECRETARY OF T H E TREASURY. Secondary credits Dec. 15, 1921: ' Accrued interest on notes purchased prior to June 15, 1921 Accrued interest on notes purchased between June 15 and Dec. 15, 1921 Total Secondary credits June 15, 1922: Accrued interest on notes purchased prior to Dec. 15, 1921.._ . Accrued interest on notes purchased between Dec. 15, 1921, and June 15, 1922 ^ Total—.. ° 63 $5, 864.100 1,450,600 —— $7, 314, 700 8, 765, 300 1, 571, 900 ' Grand total 10, 337, 200 272, 442,200 FISCALYEAR 1923 (ESTIMATED). Initial credit July 1, 1922 Secondary credits Dec. 15, 1922: Accrued interest on notes purchased prior to June 15, 1922 253, 404, 900 11,909,100 . Accrued interest on notes purchased between June 15 and Dec. 15, 1922 1, 644, 450 Total 1 Secondary credits June 15, 1923: Accrued interest on notes purchased prior to Dec. 15, 1922 15,198, 000 Accrued interest on notes purchased between Dec. 15, 1922, and May 20, 1923 1, 682, 350 Total—— - Grand total 13, 553, 550 16,880, 350 283,838,800 ) Five per cent hand purchase fund. In furtherance of the Treasury's plan for dealing with the shortdated debt, as announced in the Secretary's letter of April 30, 1921, to the chairman of the Committee on Ways and Means and further developed in the letter of June 8, 1921, to the banking institutions of the country, substantial purchases of Victory notes have been made in the market during the year. For the most part these purchases have been made, as already indicated, on account of the cumulative sinking fund, but to some extent purchases have been made, in connection V7ith offerings of Treasury notes, under authority of section 15 of the second Liberty bond act, as amended, on account of the so-called bond purchase fund. Purchases on this account were resumed June 7, 1921, and between that date and the close of the fiscal year $64,523,300 face amount of Victory 4|'s and $5,852,000 face amount of Victory 3|'s were purchased, at a cost of $63,617,366.52 64 REPORT ON TFIE FINANCES; and $5,760,891.33, respectively. The total face amount purchased Avas "$70,375,300, at a total principal cost o f $69,378,257.85. Bonds and notes retired on miscellaneous accounts. The following tables show the retirements of Liberty bonds and Victory notes on account of presentation for estate and inheritance taxes, forfeitures to the United States, and gifts, during the fiscal year ended June 30, 1921 : Retirements through presentation of Liberty bonds and Victory notes in payment of estate or inheritance tax for the fiscal year ended June 30,1921. Face amount. Loan. Coupon. First 4i's Second 4i'.s. Third 4i's. Fourth 4i's.. Victorv 4fs Total... Registered. Total. SlSl, 700 5,219,-250 5,944, 200 10,958,100 928,300 S19,100 1,401,750 848,500 981,150 = 42,150 $200, SOO 0,624,000 6, 792, 700 11, 939, 250 970,450 23,231,550 3,295,050 20 527,200 Bonds and notes retired on account of forfeitures and miscellaneoiis receipts for the fiscal yea>r ended June SO, 1921. Face araount. Loan. Coupon. First ;?i's..-.. First i's.. Second 4's.Second 4i's. . . . Third 4J's. Fourth 4Vs. Victorv 44's . . . Registered. S500 500 $150 550 1,000 16,000 2, 250 146,600 1,450 1,000 168,000 $150 550 1, OOC 15,500 1, 750 1 146,600 1,450 167, 000 ^ Total Total. 1 Includes $129,100 on account of miscellaneous receipts. Bonds retired on account of gifts for the fiscal year ended June 30, 1921. Face amount. Loan. Coupon. Registered. Total. Third 4Vs Fourth 4i's. S50 450 S50 450 Total. 500 500 Eevised regulations governing the acceptance of Liberty bonds and Victory notes for Federal estate taxes were prescribed in Treasury Department Circular No. 225, dated January 31, 1921, which appears as Exhibit 53 to this report, page 276. SECRETARY OF THE TREASURY. 65 TREASURY NOTES AND CERTIFICATES OF I N D E B T E D N E S S . The previous annual report of the Secretary of the Treasury covered the Treasury certificate operations through the offering of November 15, 1920. The next issue was the usual quarterly operation in connection with the December 15, 1920, payment of income and profits taxes and the heavy Treasury certificate maturities from December 15, 1920, to January 15, 1921. Furthermore, the semiannual interest on the first Liberty loan and the Victory Liberty loan was due on Deceniber 15, 1920. Two issues of t a x certificates were offered, both dated December 15, 1920, one bearing 5 | per cent interest and maturing in six months, on June 15, .1921, the other bearing 6 per cent interest and maturing in one year, on December 15, 1921. The offering was for $500,000,000, or thereabouts. The situation existing at the time of these offerings and the terms of the issues were described in detail in a letter to the banks and trust companies of the country, dated December 8, 1920, which is attached as Exhibit 22, page 195. These two issues were well received by the investing public and subscriptions closed on the date of issue. Seven of the Federal reserve districts oversubscribed their quotas and about 30 per cent of the oversubscriptions were allotted, making the total allotment $589,680,500 for the two issues, of which $188,123,000 was forthe June 15, 1921, maturity, and $401,557,500 for the December 15, 1921, maturity. I n order to provide for maturing Treasury certificates and continued heavy expenditures, particularly on account of the railroads, two issues of loan certificates were offered on January 15, 1921, one bearing 5^ per cent interest and maturing in three months, on April 15, 1921, the other bearing 5 | per cent interest and maturing in nine months, on October 15, 1921. Subscriptions, which closed on the day of issue, aggregated $588,596,500, as against an offering of $250,000,'000, or thereabouts, and the total amount allotted was $310,686,500, of which $118,660,000 was for the April 15, 1921, maturity, and •$192,026,500 for the October 15, 1921, maturity. Nine Federal reserve districts oversubscribed their quotas and only a small percent:age of the oversubscriptions was allotted.' Another issue of loan certificates, to the amount of $100,000,000, or thereabouts, was offered on February 15, 1921, bearing 5^ per oent interest and maturing in five months, on July 15, 1921. This issue was oversubscribed by more than 100 per cent and in a public stateinent on Februar}^ 16, 1921, the day following the offering, the Secretary made the following comments with reference to its recep.tion by the public: , The prompt oversubscription of this offering shows that Treasury certificates have become firmly established on an investment basis, and enjoy a broa'3 70073—FI 1921 5 66 ' R E P O R T O N THE FINANCES. market among investors throughout the country. It is particularly interesting in view of the fact that most of the Federal reserve banks, namely the Federal reserve banks at New York, Cleveland, Richmond, Chicago, Atlanta, St. Louis, DaUas, and San Francisco bave already establisbed a 6 per cent rate on all paper secured by Treasury certificates of indebtedness. According to the latest reports of the Federal Reserve Board, only 120 millions of Treasury certificates, or about 5 per cent of the total amount of loan and tax certificates outstanding, were pledged with the Federal reserve banks on February 11, 1921, to secure loans. The next offering was made in connection with the heavy maturitj^ of certificates on March 15, 1921, which was also the first quarterly' tax payment date for the calendar year 1921. The semiannual interest on* the third Liberty loan was due on the same date. Two series were offered, both tax certificates dated March 15, 1921, one bearing 5^ per cent interest, maturing in six months, on September 15, 1921, and the other bearing 5f per cent interest, maturing in one year, on March 15, 1922. These rates represented a decline of one-fourth of one per cent on each series from the prevailing rates of the latter half of 1920. The offering, which was for $400,000,000, or thereabouts, met with a prompt response from investors, and subscriptions, which closed on thcoday of issue, aggregated $503,436,500. The amount allotted was $193,302,000 for the September 15, 1921, ' maturity, and $288,501,000 for the March 15, 1922, maturity. The general situation at the time of these issues was described at length in a circular letter to the banks and trust companies of the country, dated March 9, 1921, which is attached as Exhibit 23, page ,197. An issue of loan certificates was announced for April 15, 1921, in the amount of $150,000,000, or thereabouts, for the purpose of meeting maturing loan certificates of that date and the heavy current expenditures of the Treasury. The series bore 5J per cent interest and had a maturity of six months. The books .closed on the date of issue and subscriptions were more than double the offering. Total subscriptions were $320,036,000, of which $190,511,500 was allotted. This was followed by another offering of loan certificates to the amount of $200,000,000, or thereabouts, dated May 16, 1921, bearing 5J per cent interest and maturing in nine months, on February 16, 1922. This issue met the same quick response, and subscriptions amounted to $532,100,000, of which $256,170,000 was allotted. This was the largest oversubscription that had been received on any issue of certificates up to that time. I n accordance with the new policy of the Treasury, the offering on June 15, 1921, as a part of the usual quarterly operations in connection with payments of income and profits taxes and heavy ma-, turities of certificates, consisted of three-year 5f per cent Treasury notes and one-year 5J per cent tax certificates. The rate for the certificates was one-half of one per cent lower than the mte six months SECRETARY OF THE TREASURY. 67 earlier on certificates of the same maturity. I n spite of the size of the combined- offering, $500,000,000, or thereabouts, it was heavily oversubscribed. Total subscriptions aggregated $788,007,000, and the amount allotted was $311,191,600 Treasury notes and $314,184,000 certificates. The terms of the offering and the general position of the. Treasury were set forth in a letter of the Secretary under date of June 8, 1921, which is attached as Exhibit 24, page 200. The success of the combined offering on June 15, 1921, permitted the next offering to be postponed till the latter part of July, although certificates amounting to $132,000,000 matured on July 15, 1921. TAVO issues were then offered, both dated August 1, 1921; one of tax certificates bearing 5^ per cent interest and maturing in seven and one-half months, on March 15, 1922; the other of loan certificates bearing 5^ per cent interest and maturing in one year, on August 1, 1922. Prior to this offering a number of the Federal reserve banks, including Boston, New York, and Philadelphia, had reduced the discount rate on certificates of indebtedness from 6 per cent to 5^ per cent. Although the amount offered in those two issues was $300,000^000, or thereabouts, the subscriptions aggregated $1,030,006,500, or more than 300 per cent of the offering. All of the Fedr eral reserve districts oversubscribed their quotas. The total amount of subscriptions allotted was $376,362,500, of which $116,891,000 was for the March 15, 1922, maturity, and $259,471,500 for the August 1, 1922, maturity. On September 15,1921, a combined.offering was made of three-year 5J per cent Treasury notes, due September 15, 1924, one-year 5^ per cent tax certifi.cates, due September 15, 1922, and six months 5 per cent tax certificates, cLue March 15, 1922. This represented a reduction of one-fourth of one per cent from the rate paid on the former issue of Treasury notes and a further reduction of one-fourth of one per cent on the rate for certificates of both maturities. The combined offering was $600,000,000, or thereabouts, but total subscriptions aggregated $1,587,838,900. The amount of subscriptions allotted was $698,149,100, of which $390,706,100 was for Treasury^notes, $182,871,000. for the' one-year certificates, and $124,572,000 for the six months' certificates. The conditions prevailing at the time of this offering and the terms of the issues were set forth in a letter to the banks and trust companies of the country dated September 9 1921, which is attached as Exhibit 25, page 203. The next offering of certificates was made on November 1,1921, and consisted of an issue of 4^ per cent five months loan certificates due April 1,1922, and 4^ per cent tax certificates, maturing in 10-^ months, on September 15, 1922. The reduction in rates from the September 15, 1921, issues was about three-fourths of one per cent on each maturity and reflected the improved conditions in the money and 68 REPORT ON THE FINANCES. investment market. The offering was for $200,000,000, or thereabouts, but subscriptions aggregated $811,064,000. The amoimt allotted was $231,487,500, of which $51,796,000 was for the April 1, 1922, maturity, and $179,691,500 for the September 15,1922, maturity. Substantial progress has been made during the past seven months in ' the retirement of the special certificates of indebtedness issued to secure Federal reserve bank notes and commonly known as Pittman Act certificates. The policy of the Treasury has been to retire each month $5,000,000 of these certificates not required to secure issues of Federal reserve bank notes and in addition aii amount equivalent to the amount of silver, certificates made available each month as a result of the coinage of silver dollars. With reference to the retirement of Pittman Act certificates, the Secretary made the following public statement on April 1, 1921. The Treasury bas begun the retirement of the special Treasury certificates of indebtedness- issued to secure Federal reserve bank notes under the Pittman Act, approved April 23, 1918. Pittman Act certificates to the amount of $5,000,000 were retired on February 28, 1921, out of the general fund and $5,000,000 additional were similarly retired, on March 29. The Treasury expects to continue to retire Pittman Act certificates npt required to secure issues of Federal reserve bank notes at tbe rate of about $5,000,000 per month. Pursuant to the terms of the Pittman Act, the Treasury is also coining into standard silver dollars the silver bullion purchased under the act. Silver certificates will be issued in regular course against the standard silver dollars so coined and Federal reserve bank notes and Pittman Act certificates pledged to secure them will be retired in corresponding amounts. Pittman Act certificates to the amount of $2,000,000 have been retired up to March 31, 1921, as the result of the coinage of standard silver dollars. This' means that the total amount of Pitcraan Act certificates outstanding has been reduced from $259,375,000 on December 31, 1920, to $247,.S75,000 on March 31, 1921. The total amount of these certificates retired between December 31, 1920, and October 31, 1921, was $113,000,000 and the amount outstanding had been reduced to $146,375,000 on the latter date. A table showing in detail all the issues of certificates of indebtedness, from July 1, 1920, to October 31, 1921, and a summary thereof from the beginning of the war, is attached as Exhibit 1, page 169. The official circulars for the various offerings of loan and tax certificates and Treasury notes, together with offers to redeem before maturity at the option of the holders, issued since the annual report of the Secretary of the Treasury for 1920, are attached as Exhibits 3 to 21, pages 177 to 195. The aggregate amount of certificates issued from the beginning of the war to October 31, 1921, was $51,277,777,808.53. Of this total, $21,221,129,500 represent loan certificates; $10,958,236,500 were sold in anticipation of income and profits taxes; and $19,098,411,808.53 comprised special issues. The amount of unmatured certificates of all classes outstanding on October 31, 1921, aggregated $2,078,593,000, 69 SECRETARY OF THE TREASURY. consisting, as shown by the following table, of $1,416,576,500 tax > certificates, $515,641,500 loan certificates, and $146,375,000 Pittman Act certificates. The following table gives in detail the Treasury certificates of indebtedness outstanding on October 31,1921: Unmatured Treasury certificates of indebtedness outstanding October 31, 1921. TAX CERTIFICATES. Interest (percent). Series. Amounts Due. TD,1921... T M , 1922... TJ, 1922.... T M 2 , 1922. T S , 1922.... T M 3, 1922. Dec. 15,1920 Mar. 15,1921 J u n e 15,1921 A u g . 1,1921 Sept. 15,1921 do Dec. Mar. June Mar. Sept. Mar. 15,1921 15,1922 15,1922 15,1922 15,1922 15,1922 $389, 557, 500 288, 501, 000 314,184,000 116, 891,000 182, 871, 000 124, 572,000 1, 416, 676, 500 T o t a l t a x certificates. LOAN CERTIFICATES. A, 1922.. B , 1922. M:ay 16,1921 Aug. 1,1921 Feb. 16,1922. Aug. 1,1922 $256,170,000 259,471,500 515,641,500 1,932,218,000 T o t a l loan certificates T o t a l t a x a n d loan certiflcates.. OTHER C E R T I F I C A T E S . Pittman Act certificates . . $146, 375, 000 . . . . Total outstanding certificates Oct. 31,1921. _ 2,078, 593, 000 1 MARKET PRICES OF LIBERTY BONDS AND VICTORY NOTES. Market prices of Liberty bonds and Victory notes hafe shown striking improvement during the past year, and in many cases have appreciated over 10 points from the low price reached during the 1920 decline. Victory notes have recently touched par and are quoted constantly within a small fraction of a point of par, while many of the Liberty bonds are now selling at 95 or better. The following table gives the low points reached by Liberty bonds and Victory notes and the closing quotations on the 15th of each month, beginning with November, 1920: First 3Vs. Date. Low point First 4i's. Second Second 4's. 4i's, I$86.30 ! $83.00 '$84.00 <$81.70 93.10 90.12 92. 30 91.04 90.60 90.04 88.28 88. 42 86.50 88.70 88. 08 90.82 95.10 88.20 86.12 87.60 87.20 87.16 87.74 87.62 87. 80 87. 34 87.90 88.42 93.14 94.20 85. 70 85.10 86.90 87.00 86.78 87.74 87.30 86.60 86.92 87.56 88.28 92.40 94.20 1920—Nov. 15.. Dec. 1 5 . . 1921—.Ian. 1 5 . . Feb. 15.. Mar. 1 5 . . Apr. 15.. May 1 6 . . June 15.. July 15.. Aug. 15.. Sept. 15Oct. 15.Nov. 15.. 1 J u l y 9, 1921. First 4's. 2 M a y 19, 1930. 86.02 86.. 90 87. 30 86.92 87.40 87.72 87.44 87.12 87.70 88. 28 92.66 94.30 3 May 18, 1920. Third 4i's. Fourth 4i's. Victory 4f's. '$82.00 5 $86.00 < $82.54 < $94.82 85.66 85.36 87.12 86. 86 86.88 87.64 87. 36 86.74 87.02 87.68 88.44 92.72 94.22 88.06 87.90 90.30 90.14 90.18 90.76 90.72 91. 50 91.16 91.90 92. 42 94.82 96.20 * May 20, 1920. 86. 28 85.90 87.22 87.02 87.00 87.76 87.40 87.00 87.16 87.88 88.62 93.02 94.31: Victory 3Fs. * $94.72 95.78 95.00 97.24 97.22 97. 24 97.60 97. 90 98.38 98.32 98.76 99.04 99.44 99.68 5 Dec. 21, 1920. 95.74 95.00 97.20 97.23 97.24 97.60 97.92 98.38 98.32 98.70 99.04 99.40 99.68 70 REPORT ON T H E FINANCES. The rise in the prices of Liberty bonds and Victory notes is in large measure a reflection of easier credit conditions and lower interest rates, though better buying on the part of investors and improved distribution of the public debt doubtless account for much of the improvement. I t is a well-known economic law that high money rates and high commodity prices mean low prices for bond and other fixed income securities, while lower money rates with reduced commodity prices normally bring higher market prices for bonds. This has been' illusti'ated by the concurrent decline during the past few months in interest rates and in the yield of Liberty bonds. The following table, shows the average monthly yield of Liberty bonds and Victory notes during the past 1*2 months: /Fnst\second 4i's. Second 4's. Second 4i's. 5.049 5.248 4.545 4. 594 4. 99S 5.164 5.266 5.437 5. 982 6.296 5.380 . 5. 556 6.469 6. 919 5.448 5.896 5.118 5.147 5.143 5.118 5.117 5.115 5.129 5. 098 5. 016 4.747 4.-421 4. 359 4. 465 4. 379 4.444 4. 456 4.429 4.463 4.519 4.505 4.978 5.029 5.003 4.966'4.975 5.020 4.989 4.944 "4.846 4.587 5. 245 5. 301 5.272 5.234 5.245 5. 289 5. 258 5.211 5.107 4.838 5. 839 5.923 5.881 5. 841 5. 835 5. 756 5. 771 5.658 5.506 5.189 5.349 5.418 5.399 5.360 5.376 5.425 5. 390 5. 338 5.222 4.902 6.125 6. 045 6.036 5.998 5. 902 5.684 5.681 5. 513 5.290 5.119 5.109 5.031 5.022 4.980 4. 888 4.674 4.670 4.507 4.285 4.118 Date. First 3i's. First 4's. First 4i's. 1920 Noveniber December 3.895 4.117 4.784 4.974 3. 976 4. 032 4.094 4.145 4.236 4. 274 4..359 4.254 4.287 • 4.0S4 4.862 4.879 4.880 4.851 4.849 4.847 4.863 4.828 4.750 4.485. 1921 January February March .. April May-.. June July August September October . Third 4i's. Fourth 4i's. Victory 4|'s. Victory 3rs. The increased market prices of Liberty bonds and Victory notea and their striking return toward par have supplied the answer to the agitation that the Treasury should adopt some artificial means to bring about appreciation, as, for example, refunding at a higher rate of interest, exchange for legal-tender currenc}^, and the like. I t has become evident that the decline in Liberty bonds was not due to any defect in the bonds themselves nor to any lack of confidence in the Government's credit, but rather to the excess of supply over demand and the high rates for money which prevailed as a result of the waste and destruction of the war and the consequent scarcity of capital and credit. The market value of securities with fixed rates of interest naturally declined to a point where the yield became commensurate with market rates of interest, and now that money rates have begun to decline the reverse process has ensued and Liberty bond prices have advanced. As the savings of the public accumulate and interest rates decline, the prices of Liberty bonds must inevitably advance and gradually approach par.A necessary part of the movement back to normal conditions has been the gradual elimination of Government securities from the portfolios of Federal reserve banks and commercial banks and their REPORT OF THE SECRETARY. OF T H E TREASURY. 71 assimilation by the investing public. The following table shows the progress which has been made in the liquidation of loans secured by Liberty bonds and Victory notes and reflects the gradual absorption of those securities by the investing public: Amounts in thousands of dollars. Date. Liberty bonds and Victory notes outstanding. Amount. L i b e r t y b o n d s a n d Victory notes o w n e d a n d held b y weekly r e p o r t i n g m e m b e r b a n k s t o secure loans. - Amount. H e l d as O w n e d . 1 coUateral.2 D e c . 3 1 , 1919 JuneSO, 1920...Oct. 31, 1 9 2 0 . . - . . J u n e 30, 1921 Oct. 31,1921 20,239,626 19,581,201 19,528, 298 19.148,948 1 18,872,437 875,839 807,719 800,772 2 767,755 2 794,728 989,563 992,744 884,,202 652,127 540,000 Total. Liberty bonds and Victory notes held b y Federal reserve b a n k s t o secure loans. P e r cent P e r cent of a m o u n t of a m o u n t ontstand- Amount.1 outstanding. ing. 1,865,402 1,800,463 1,684,974 1,419,882 1,334,728 9.22 1,070,064 9.19 910,039 8.63 7.41 606,412 7.07 425,226 5.29 4.65 3.17 2.25 1 These figures are available for a given day each week and are taken for the dates nearest those given at the left of the table. 2 Estimated. Between October 15,1920, and November 2, 1921, loans and discounts of the Federal reserve banks secured by the Government war obligations dechned from $1,192,810,000 to $453,501,000, or 62 per cent. During the same period loans and discounts based on commercial paper'declined from $1,581,060,000 to $806,929,000, or only 49 per cent. GO^TSRNMENT SAVINGS SECURITIES. The sale of Government savings securities, including the 25-cent thrift stamp and the $5 war savings stamp, first offered by the Treasury in 1917, Treasury savings certificates of the $100 and $1,000 denominations, first issued in 1919, with the addition of the $1 Treasury. savings stamp and the Treasury savings certificate of the $25 denomination, was continued throughout the past year. The Savings Division has been charged with the promotion of the sale of these securities, maintaining a small sales organization in the fiscal agency departments of the 12 Federal reserve banks. F o r reasons both of policy and of the curtailment of expenditures, much of the work which had hitherto been handled by the sales organizations in the districts was absorbed, beginning July 1, 1921, by the Federal reserve banks in their capacity as fiscal agents of the Government. ° As a consequence it has been possible to reduce considerably the size of the savings organizations in the districts. A corresponding reduction has been made in the organization of the Savings Diyision in the Treasury, with the result that the organization both in Washington and in the field is now on a skeleton basis. These changes have been in accordance with the general policy of the reduction of expenditures by the Federal "Government. 72 REPORT ON THE FINANCES. The work of the Savings Division during the fiscal year 1921, as in 1920, has been three-fold: (1) To develop and protect the secondary market for all war issues of Government securities, (2) to sell Government savings securities, (3) to make permanent the habits of regular saving and investment in United States Government savings securities. In carrying out these objects the postal sj^stem has been the chief agency for the sale of Government savings securities. I n its effort to create a market for these securities the Savings Division has conducted a general savings campaign, working through such organizations as labor groups, industries, schools, women's clubs, fraternal societies, and the press. The details of the activities of the organizations with which the Treasury has worked in promoting its savings operations follow : 1. Labor groups and-industries. The importance of "saving and investment in Government securities has been kept before the great bodies of employees throughout the country through savings' associations and other savings plans in industries, in the development of which the Savings Division has actively ^participated. Leaders of many industrial organizations have indicated by their cooperation a keen interest ih the Government savings program. 2. Schools. In its activities with the schools the division has encouraged the establishment of thrift instruction as a part of the national educational system, the practical application of thrift principles b}^ students in their school work and the operation of a schools savings system as a method of saving money for investinent in Government savings securities. As indicated in the last annual report, the National Education Association in convention at Salt Lake City in July, 1920, appointed a committee of State superintendents to confer with officials of the Saving's Division to consider and report on the place of thrift instruction in the American schools. The committee after exhaustive investigation came to the conclusions embodied in the report set forth below: KEPORT ON THKTFT EDUCATION. Modern education must include thrift instruction if it is to be fully educative. American education is rapidly forsaking a theoretical attitude and is becoming a practical instrument for eflicient living. Ability to succeed financially is essential to a well-rounded life. A good citizen is first of all self-sustaining; The first civic duty, of the individual is self-support and the capacity to save something for his own financial comforts, through which less fortunate individuals may be helped and the community enriched. Instruction in simple economic principles and project practice in thrift are vitally needed in the schools because the prevalent extravagance and waste in American life threaten to undermine the economic independence and civic virtue of American citizenship. Flabits of popular saving will create ^universal capital, develop financial independence, and tend to a more even distribution of wealth. SECRETARY OF THE TREASURY. , • 73 The school is the most fundamental and logical place through which to disseminate such practical and fundamental knowledge as is necessary to the welfare of all the people. Therefore— AVe recommend that thrift education be made a part of the course of study in all school systems, and a part of the regular instruction in all schools, either as a' separate course, or correlated with kindred • subjects. The method of providing this instruction should be left to the State and local school, administration. We recommend that the field' of instruction in thrift be limited to thrift in time, mone5^ and material, fn order to avoid a duplication of the work now^ being done through other subjects in the curriculum, or by agencies outside of the school. • ' We recommend careful instruction in simple economic principles as they pertain to— 1. Work. 2. Production. 3. Systematic saving, wise spending, and careful investment of money. 4. Judicious use of time and materials. 5. A broader understanding of financial institutions and financial practices. We recommend project practice in thrift as a method of practicalizing the principles which are taught. Project work has demonstrated its efliciency in many lines of education, and is absolutely essential in connection with the teaching of thrift. We recommend that definite courses in the elementary principles of practical economics be provided in the upper grammar grades, and that a more extended study df practical finance as applied to Government fiscal operations, banking, life insurance, and the like, should be given in connection with a regular course in economics in the high school. As a method of furthering the practice of saving money and of applying the principles of safe investment, school savings systems, utilizing Government savings securities and savings bank facilities, should be worked out. It is not enough that students should merely be encouraged to save money. They should be given a practical opportunity in the schools to invest their savings. We recommend cordial cooperation with the Savings Division of the United States Treasury, the American Bankers' Association, the Parent-Teachers Association, and other organizations qualified to help in this work. We suggest that the various school publishing companies look into this new subject of education with a view of recasting certain textbooks on civics, economics, history, arithmetic, and other subjects with which thrift education may be correlated to the end that there be included in these texts practical material on thrift and the basic principles of economics, and furthermore that these publishing companies consider the question of preparing suitable textbooks on these subjects for use of the public schools, if the investigation and assessment of the publishing houses themselves reveal a distinct need for such texts. In the meantime material and suggestions for study already prepared by the Savings Division of the Treasury Department, the American Bankers' Association, and similar organizations are readily available and can be made most useful. Some recent textbooks on civics and economics also contain helpful chapters on thrift. It is the opinion of the committee that thrift education has come into the " American school system to stay; that henceforth it is not to be sought as a mere by-product qf educational processes, but will take its place with the other standard subjects in the school as a great objective of education. 74 REPORT ON THE Flls^ANCES. We therefore commend the new thrift education to State superintendents of public instruction and urge its prompt adoption by all the State and local educational systems of the United States. We appeal for this enrichment of the course of study through thrift instruction on the ground that it is an imperative educational need and a sound educational policy. If the American school is to prepare its students for the practical responsibilities of life it must assume the task of teaching the problems of life and of giving the instruction and the experience necessary to fit young people for the business of living. 3. Fraternal societies have assisted in the furtherance of the savings-program through the distribution of literature provided hy the Savings Division and in other helpful ways. Many fraternal organizations have also invested their surplus lodge funds in Government savings securities. . 4. Women's clubs. The prominent women's organizations of the country have continued their support of the Treasury savings program and have endeavored to interest their membership in the purchase qf Government securities. Many women's clubs are making practical questions of thrift a feature of their regular club meetings and there is an increasing tendency among women to study practical economic subjects, with" a view of becoming more familiar with financial questions, particularly questions of investment. 5. Publicity. The press has bjeen most liberal in the contribution of space for carrying information relative to Government securities. Daily and weekly newspapers, labor papers, trade and technical journals, house organs, fraternal publications, farm journals and educational magazines have utilized from time to time articles supplied by the division. In reaching the foreign-speaking population of the United States, the loreign:language newspapers have proved a convenient and useful medium. The Clip Sheet, the only regular monthly publication of the division, was continued during 1921 along the same general lines as in 1920, carrying news items and editorials from other publications and original articles on Liberty bonds. Government savings securities and on the general question of saving, and discouraging the investment in securities of a speculative character. This clip sheet is sent to a selected list of publications and the material contained therein has been utilized most generously. The division also issues from time to time, as conditions warrant, appropriate posters descriptive of Government savings securities. Savings securities for 1921. I n addition to the securities issued in 1920 and comprising the following;—thrift stamps, 25 cents, noninterest bearing; war-savings stamps, $5 maturity value, and war-savings certificates, with spaces for 20 war-savings stainps; Treasury savings certificates, with ma Sl^XJRETARY OF THE TREASURY. 75 turity value of $100 and $1,000—there were issued during the past ' year the following new securities: Treasury savings stamps, $1 noninterest bearing, with Treasury savings cards for affixing Treasury savings stamps; and Treasury savings certificates with maturity value of $25. Announcement of these issues was made in the following statement of the Secretary of the Treasury, dated December 29,1920: The Treasury is distributing circulars announcing the issue of the 1921 Treasury savings securities, which will he on sale by the first of the year at post offices and other agencies throughout the country, including banks and trust companies. It is anticipated that during the coming year the 1921 securities will be purchased in large volume and that the Government's movement for thrift, savings, and investment in Government securities will continue to show good results. The 1921 securities consist of the 2.5-cent thrift stamp which bears no interest and is used to evidence payments on account of war savings stamps and certificates, the $1 Treasury savings stamp which bears no interest and is used to evidence payments on account of war savings stamps and Treasury savings certificates, the $5 war savings stamp, and the registered Treasury savings certificates in denominations of $25, $100, and $1,000 (maturity value). As in previous years, the issue price of ttie war savings stamp is $4.12 in January, and increases 1 cent a month to $4.23 in December. The issue price of the $25 certificate is $20.60 in January, and increases at the rate of 5 cents a month to $21.15 in December, and the issue price of the $100 certificate is $82.40 in January and increases at the rate of 20 cents a month to $84.60 in December. The $1,000 certificate wiU be sold for $824 in January and the price Increases at the rate of $2 a month to $846 in December. The 1921 securities will be substantially the same in terms and conditions as those of the 1920 issue, with the addition of the $1 Treasury savings stamp, and the $25 Treasury savings certificate. The $1 Treasury savings stamp will be bright red in color, imprinted on a green tint, and will bear the portrait of Alexander Hamilton, the first Secretary of the Treasury. It is intended primarily for accumulation on Treasury savings cards in lots of 20 stamps, on account of the purchase price of a $25 Treasury savings certificate. As in 1920, war savings certificates of.the 1921 series bearing the necessary complement of war savings stamps may be exchanged for registered Treasury saving certificates, series of 1921, in the $25, $100, and $1,000 denominations. Provision is also made for the exchange during i921 of war savings certificates of the 1918, 1919, and 1920 series for Treasury savings certificates of the same series at Federal reserve banks and the Treasury Department, exchanges of registered certificates to be made through the post office of registration. Owners of war savings certificates who desire the protection of registration are urged to exchange their war savings certificates for a Treasury savings certificate, rather than to seek registration of the war savings certificate at a post office. In addition to its other advantages, the Treasury savings certificate gives the benefit of central registration at the Treasury and provision for direct payment by the Treasury. The latter provision wall be of advantage and facilitate payment in case of change of residence, since a registered war savings certificate can be redeemed only at the post office at which it was registered. The new Treasury savings securities offered for 1921 supply a $1 unit for saving and a registered Government security in the $25 denomination, which 76 REPORT ON THE FINANCES. can be conveniently purchased through the accumulation of the $1 Treasury savings stamps. More important' still, the new securities complete a most attractive line of Government savings securities, the $1 stamp and the $25, $100, and $1,000 registered Treasury savings certificates, and thus place the Treasury savings movement on a solid peace-time basis. The thrift stamp used in 1921 was the same as that used in prior years. The 1921 war savings stamps and certificates were identical in terms with those of 1920, except that they mature on January 1,1926, instead of January 1,1925. The 1921 stamps were larger in size than the issue of the previous year, orange in color, imprinted on a green tint, and bear the portrait head of Lincoln. The new Treasury savings stamp of the $1 denomination is bright red in color, imprinted on a green tint, and bears the portrait head of Alexander Hamilton. The new $25 Treasury savings certificate is of the same general design as those of the $100 and $1,000 denomination but of a different color. All of these Treasury savings certificates mature on January 1, 1926. The terms of the 1921 issue appear in Department Circular No. 215, dated December 15, 1920, attached hereto as Exhibit 55, page 297.. Further regulations governing the issue and sale of war savings stamps and certificates and Treasury savings stamps and certificates during 1921 are contained in Department Circular No. 217, dated December 15, 1920, as to exchanges; and No. 216, dated December 15, 1920, as to agencies, which are attached as Exhibits 57 and 56, pages 316 and 308. T h e regulations governing the surrender of 1920 Government savings securities were set forth in Department Circular No. 220, dated December 20, 1920, and attached as Exhibit 58, page 323. The cash receipts from the sale of stamps and Treasury savings certificates, using the figures in the daily Treasury statement for the last day of each month from the first month of their issue to October 31, 1921, with redemptions by years, have been as follows: Receipts. 1917—December 1918—January February March ^__ April :__ May June - July August September October November Oecember $10, 236, 451. 32 24, 559, 722.15 41,148, 244. 22 53, 967, 864. 49 60, 972, 984.12 57, 956, 640.12 58, 250, 485. 00 211, 417, 942. 61 129, 044, 200. 62 97, 614, 581. 48 89, 084, 097. 31 73, 689, 846. 00 63, 970, 813. 47 1 19n -January February March Aprn May i— June July August September October November December $70, 996, 041.14 15, 816, 539. 27 10,143, 081. 68 9,572,728.48 6, 558,198. 33 5, 269, 535. 51 5,176, 865.12 6, 201,164. 07 6,111,944.78 7, 316, 467. 60 8,020,436.67 9,124, 292.13 SECRETARY UF I'HE FREASUKY. L920—January February March April : May June July August ^ September ___ October-. November December-:— $8, 987, 462. 59 5, 221, 213. 48 6/063,359.22 4,815,437.69 3, 552, 962.19 3,107, 909. 72 2, 359, 274. 53 2, 231, 509. 77 1, 814, 705. 89 1, 889, 750. 48 1, 912, 967. 05 1, 934, 452. 46 1921-—January February MarchApril May June July August September ___ October— 77 $2, 646, 396. 88 3, 324,1Q4. 22 2,838,416.58 2, 471, 904. 05 1, 682, 606. 72 1, 481, 271. 98 1, 403,106. 07 1, 321,198. 52 1, 083, 602.12 1, 209, 074. 50 • Total 1,195, 573, 914. 40 Redem ptions Cotal from beginning of campaign to Se pt. 30, 1921____ Series as follows: 1918 1919 — : 1920 -. 1921 ——. Thrift stamps, unclassified - $523,031,856.82 462, 7.52, 905. 02 42, 604, 882. 62 14, 868, 727. 23 2, 802, 819. 45 2, 522. 50 During the first six months of the fiscal year there was a general decline in the sale of Government savings securities, but considerably increased sales during the early part of the calendar year 1921 evidenced a revival of public interest in the subject of savings and investment in these securities. Conditions throughout the country for the past few months have adversely affected sales, but the Treasury feels that the tendency toward lower interest rates on commercial obligations, the appreciation of Liberty bonds and Victory notes, and the general sentiment for thrift throughout the country should tend to restore' interest and to increase the sale of Government savings securities in the near future. Savings securities for 1922. During the calendar year 1922 the Treasury Department will continue to issue Treasury savings certificates in the denominations of $25, $100, and $1,000, maturity value, but on a new basis, with a , fixed issue price at the rate of $80 for a $100 certificate, or at the rate of ^ , per cent compounded semiannually. The $1 Treasury savings stamp, first issued in 1921, will be continued. - For some time past the Secretary of the Treasuiy and the Postmaster General haA'C been developing means of coordinating the savings operations of the Treasury and of the Post Office Departments. Through these conference^ a unified Government savings program has been eff'ected, with the result that during 1922 postal savings will be advanced for the deposit of savings and Treasury savings se- ' curities for investment. This program will be promoted jointly 78 REPORT ON T H E FINANCES. by the savings organizations of both departments. Pursuant to this plan, the Treasury Department will discontinue, at the close of the calendar year 1921, the issuance of the 25-cent thrift stamp and the $5 war savings stamp, on the ground that the 10-cent postal savings 'stamp, the $1 Treasury savings stamp, and postal savings deposits will provide adequate means of saving money in small installments, while the Treasury savings certificates above referred to will provide means of investment. The new $25 Treasury savings certificate will bear the portrait head of Eoosevelt; the $100 certificate that of Washingtoij; and the $1,000 certificate that of Lincoln. These certificates will be issued at a flat price, instead of at prices varying monthly as in previous years. They will mature five years from date of issue. The terms of the issues for 1922 will appear in detail in formal Treasury Department announcements to be issued at a later date. RAILROADS. Federal control of the railroads terminated at 12.01 a. m. March 1, 1920. From that date to November 15, 1921, inclusive, the Treasury has made payments under the Transportation act, 1920, approved February 28, 1920, as amended, on account of reimbursement of deficits to short-line railroads, the. six months' guaranty, and new loans to railroads, aggregating $693,126,350.49. These payments have been made in pursuance of certificates received from the Interstate Commerce Commission, under the following sections: Section 204, for the reimbursement of deficits during Federal control, including p a r t i a l payments under the act approved Feb. 26, 1921 i _•___' _'__ $3,190, 369. 73 Section 209, in respect to the g u a r a n t y therein provided, including p a r t i a l payments under the act approved Feb. 26, 1921 430, 468. 763. 76 Section 210, for loans from the revolving fund of $300,000,000 therein provided i_-_ 259, 467, 217. 00 Total - — 693,126, 350. 49 Copies of the above sections, as amended, are attached as Exhibit 29, page 215. Section 20Jf. In response to the Treasury's inquiry as to the estimated amounts payable under section 204 of the Transportation act, the Interstate Commerce Commission has stated as follows: SECRETARY OF THE TREASURY. 79 Estimate of whole amount payable under the provisions of section 204 $11, 079,^799. 84 Amount certified for payment to and including Oct. 31, 1921 3,190, 369. 73 Estimate of balance payable to carriers— •_, Of which an estimate is made of traffic balances and other indebtedness due the Director General of Railroads in the amount of ——— 7, 889, 430.11 3, 203, 062.19 Leaving a net balance estimated as payable to carriers under this section of— •-- 4, 686, 367. 92 The Secretary of the Treasury in making payments under this section is required, upon the request of the President, to deduct from the amount certified to be due the carrier the amount certified to be due from the carrier, to the President (as operator of the transportation S37^stems under Federal control). A statement showing the amounts of partial and final payments, respectively, to November 15, 1921, inclusive, made to carriers under this section after making such deductions, and the amounts of the deductions, is attached as Exhibit 30, page 222. ' . Section 209. I n response to the Treasury's inquiry as to the estimated amount necessary to make good the guaranty provided by section 209 of the Transportation act, the Interstate Commerce Commission has stated as follows: . Estimate of the whole amount payable under the provisions of section 209 of the transportation act, 1920 $535,936,898.90 Of this amount there has been certified for payment under section 209(h) and (i) and section 209(g) to and including Oct. 31, 1921, an amount of 430,520,307.37 Leaving a balance estimated as payable to carriers under this section of 105,416,591.53 Paragraphs (h) and (i) of section 209 authorize the commission to certif}^ advances to be made to carriers during the guaranty period, (the six months beginning Mar. 1, 1920), on account of the sum estimated to be necessary to make good the guaranty. In a decision, dated October 7, 1920, set forth in the last annual report at pages 162 to 165, the Comptroller of the Treasury ruled that the Secretary of the Treasury was not authorized under the statute to make payment on such a certificate unless it was based on an application filed with the commission prior to September 1, 1920. In the same decision the comptroller ruled that the Secretary of the Treasury was not authorized under the act to make partial pa37ments on the guaranty (as distinguished from such .advances). On November 29, 1920, the Grand Trunk Western Eailway Company filed a petition in 80 REPORT ON T H E FINANCES. the Supreme Court of the District of Columbia for a writ of mandamus directing the Secretary of the Treasury to draw a warrant in its favor for the amount of a certificate for such a partial payment. In a decision, dated December 31, 1920, the court declined to grant the writ, holding that partial payments on the guaranty were not contemplated or authorized by the statute. Congress, on February 26, 1921, with a view to remedying this situation, enacted an amendment to the Transportation act, 1920, as amended, by adding after section 211 a new section designated as section 212, which provides that in making certifications under section 204 or section 209, the commission, if not at the time able finall}' to determine the whole amount due under such section to a carrier or the American Eailway Express Company, may make its certificate for any amount definitely ascertained by it to be due, and may thereafter in the same manner make further certificates, until the whole amount due has been certified. Since the enactment of this amendment, known as the Winslow Act, and up to November 15, 1921, inclusive, the. Treasury has made partial payments under section 204 in the amount of $1,815,841.15, and under section 209 in the amount of $165,827,775.05. A statement showing the amounts of advances, partial payments, and final payments,'respectively, to November 15, 1921, inclusive, made to carriers under section 209 is attached as Exhibit 31, page 223. Section 210. Paragraph (e) of this section appropriates the sum of $300,000,000 to be used as a revolving fund for the purpose of making the loans provided for therein and for paying certain final judgments, decrees, ' and awards rendered against the Director General of Eailroads. To November 15, 1921, inclusive, there has been paid out of this fund $259,467,217 for such loans, and $6,000,000 has been advanced to the Director General of Eailroads for payment of such final judgments, etc., a total of $265,467,217. Eeceipts on account of the fund aggregated on November 15, 1921, $30,053,901.40, representing $21,259,033.33 for repayments of principal on said loans and $8,794,868.07 for interest collected thereon. As a result of the above payments and receipts the balance of the fund at the close of business on November 15, 1921, amounted to $64,586,684.40. A statement showing the amounts of loans to November 15, 1921,, inclusive, made to carriers under section 210, 'and the amounts of repayments, is attached as Exhibit 32, page 227. DISCONTINUANCE OF THE SUBTREASURIES. Between October 25, 1920, and February 10, 1921, the nine United States subtreasuries were discontinued in accordance with the legis- SECRETARY OF THE TREASURY. 81 lative, executive, and judicial appropriation act approved May 29, 1920. Many important functions of the subtreasuries had already been intrusted to the Federal reserve banks, as depositaries and fiscal agents of the United States, and as the subtreasuries were discontinued their remaining functions were transferred to the Treasurer of the TJnited States, the mints and assay offices, and the Federal reserve banks and branches. The Treasury Department issued the following public statement on February 14, 1921, to announce the final discontinuance of the subtreasuries: In accordance with the legislative, executive, and judicial appropriation act, approved May 29, 1920, which authorized the Secretary of the Treasury to discontinue the subtreasuries of the United States on July 1, 1921, or at such earlier dates as he might deem advisable, the Secretary of the Treasury announces that the subtreasuries have all been discontinued in the following order: • Boston Chicago N e w York : Oct. 25, 1920 Nov. 3, 1920 — D e c . 6, 1920 San Francisco —J Dec. 20, 1920 New Orleans Jan. 5, 1921 St. Louis Jan. 8, 1921 Baltimore Jan. 14, 1921 Philadelphia ' Feb. 3, 1921 Cincinnati -Feb. 10, 1921, As provided in the statute, the duties and functions performed by the subtreasuries have been transferred to the Treasurer of the United States, the mints and assay offices, and to Federal reserve banks and branches. The closing of the subtreasuries and the transfer of their duties and functions have been effected without interruption to business and without interference with the financial operations of the Government, and it is believed that the 'Change will result in substantial benefit to the banks and the general public •and in better distribution of coin and currency throughout the country. Moreover, a material economy has been effected, not only by the reduction in operating expenses effected by abolishing the subtreasury establishments but also by the elimination of the necessity of keeping with the assistant treasurers the working supplies of coin and currency required to enable them to perform their functions, amounting in the aggregate to about $25,000,000. The ofiicial circulars by which the several subtreasuries Avere formally discontinued appear as Exhibits 60 to 66 to this report on pages 333 to 339. The passing of these institutions marked the final disappearance of the so-called Independent Treasury system, which had been established 7.5 yeaTS ago for the purpose of carrying on the banking and fiscal activities of the Government. I t dated back to 1846, a time when the irresponsible character of banking institutions made it necessary for the Government to devise some means for safe-keeping and handling its own funds. Prior to that time the Government's policy in this regard had not been uniform. Until the establisliment of the First United States Bank public money was left in the hands 70073—FI 1921 6 82 REPORT ON T H E FINANCES. of the collectors until it was needed. During the period of the First United States Bank, 1791-1811, and the greater part of the period of the Second United States Bank, 1817-1833, these banks with their branches were the principal depositaries. Between 1811-1817, and again between 1833-1846, State banks were used as Government depositaries. Financial disturbances, as well as banking and currency difficulties, during the latter period led to executive recommendations in favor of an independent treasury as early as 1837. The first subtreasury law was passed in 1840, .but it was repealed the following year. The independent treasury system was finally established in 1846, after another period of unsatisfactory experience with State banks. The act establishing the subtreasuries contem23lated and temporarily accomplished the complete separation of the Government from the banks. The Government for a time became its own banker; it made collections of revenue, handled its disbursements and transfers, and provided for the safe-keeping of its funds without making use of banking institutions. During the early history of the independent treasury it performed a most important service along these lines. Safety of Government funds was the primary purpose back of its establishment, and it not^ only met this requirement but also had a stabilizing influence on the currency sj^stem. The Treasury continued to operate on substantially this independent basis until 1861, when, at the outbreak of the Civil War, the Secretary of the Treasury called upon the banks to assist in placing a Government loan. Two years afterwards, in 1863, the nationalbanking system was established, and national banks began to be used as depositaries and financial agents of the I Government to supplement the-subtreasuries as keepers of public funds. As the national-banking system developed the independent treasury tended more and more to disappear and the Government's relations with the banks were multiplied. Then, in 1913, came the Federal Eeserve Act, under which the Federal reserve banks were established, and authorize^d, when directed by the Secretary of the Treasury, to act as depositaries and fiscal agents of the United States. Since that time the Federal Eeserve System has become so thoroughly established that not only were the subtreasuries no longer needed by the Treasury, in connection with its fiscal operations but the Federal reserve banks, were already performing many of the functions and duties previously performed only by the subtreasuries. I t was natural that the next step should be the final discontinuance of the subtreasury system. Upon the discontinuance of each subtreasury the assets held therein were checked and examined by a Treasury committee aiid transferred to the Treasurer of the United States at Washington, to the mints and assay ofiices, and to the Federal reserve bank or branch Federal reserve bank located in the respective subtreasury city. I t was found 83 SECRETARY OF T H E TREASURY. in each case to be feasible to transfer moneys and bullion constitute ing part of the trust funds of the Treasury from the subtreasuries to other Treasury offices, and no such transfers had to be made to the Federal reserve banks. Prior to the discontinuance of the subtreasuries the Secretary had issued under date of August 30, 1920, instructions with respect to the exchange, replacement, and redemption of United States paper currency through the Federal reserve banks, and, under date of October 19, 1920, instructions with respect to exchange and redemption of United States coin, and the performance by Federal reserve banks of other duties and functions theretofore performed by the subtreasuries. The dates upon which the Federal reserve* banks and their branches have assumed functions under these instructions are as follows: Bank. 1. Boston 2. NewYork Buffalo branch 3. Philadelphia 4. Cleveland Cincinnati brarich _.. Pittsburgh branch—'.. 5. Richmond Baltimore branch 6. Atlanta .New Orleans branch— JacksonviUe branch Birmingham b r a n c h — Nashville branch 7 Chicago Detroit branch 8. St. Louis • Louisville branch Memphis branch Little Rock branch 9. Minneapolis Helena branch 10. Kansas City... Omaha branch Denver branch Oklahoma City branch. 11. DaUas..: El Paso branch Houston branch 12. San Francisco Los Angeles branch Portland branch Salt Lake City branch.. Seattle branch Spokane branch • Currency. Oct. Nov. Nov. Nov. Mar. Feb. Apr. 1,1920 1,1920 22,1920 18,1920 2,1921 10,1921 4,1921 Jan. 14,1921 June 10,1921 Jan. 5,1921 June 10,1921 .....do do Nov. 1,1920 Nov. 13,1920 Nov. 1,1920 Dec. 23,1920 do do Dec. 1,1920 Mar. 1,1921 Nov. 1,1920 Oct. 29,1921 do do Mar. 22,1921 Dec. 21,1920 Apr. 1,1921 db do do do Coin. Oct. Dec. Nov. Feb. May Feb. 25,1920 7,1920 18, 1921 3,1921 19,1921 10,1921 Jan. 14,1921 June 10,1921 Jan. 5,1921 June 10,1921 Do. Do. Nov. Nov. Jan. Jan. 3,1920 18, 1921 8,1921 26,1921 Do. Do. Feb. • 1,1921 Mar. 1,1921 Dec. 20,1920 Oct. 29,1921 Do. Do. Mar. 22,1921 Dec. 21,1920 Owing to the complete preparations made by the'Treasury Department, the closing of the subtreasuries and the transfer of their duties and functions were effected without interruption to business and without interference with the financial operations of the Government. The result has been, on the contrary, the extension of improved currency and coin facilities to the country, including particularly many sections which were inadequately served by the subtreasuries. The location and banking. connections of the Federal reserve banks and their branches afford a more convenient and natural method for the equitable distribution of paper currency fit for 84 REPORT ON T H E FINANCES. ^ circulation than it was possible to secure through the subtreasuries, and there has already been a decided improvement throughout the United States not only with respect to the condition of the paper currency but with respect to.the supply of notes of small denominations. A material economy has resulted, not only by the reduction in operating expenses effected by abolishing the subtreasury establishments, but also by the elimination of the necessity of keeping with the Assistant Treasurers working supplies of currency and coin required to enable them to perform their functions, amounting in the aggregate to approximately $25,000,000. Nor has it been necessary to increase the balances of- Government funds held by the Federal reserve banks by reason of their assumption of subtreasury functions. Those employees of the subtreasuries who were not eligible for retirement or were not transferred to other Government offices were taken over b}^ the Federal reserve banks, at least under temporary employment. DEPOSITS OF GOVEIJN?AlENT F U N D S . I n addition to the Treasurer of the United States, the depositary system of the Government during the fiscal year 1921 comprised the Federal reserve banks and branches (which also act as fiscal agents of the United States), Federal land banks, national-bank depositaries, both general and limited, special depositaries, foreign depositaries, and insular depositaries, including the treasurer of the Philippine Islands. The number of such depositaries by classes at the end of the fiscal year 1921 is indicated in the abstract of repoit of the Division of Deposits on page 476. The fiscal year 1921 was largely one of adjustment so far as concerns deposits of Government funds. During the preceding fiscal year the Treasury had initiated new and definite policies with regard to balances with general national bank depositaries of public moneys, and these policies have been further developed and applied during the year under review. With the close of the war there were no surplus Government funds to deposit with the banks and the Government was itself a heavy borrower in order to meet its current requirements. I n these circumstances the depositary policy of the Government necessarily aimed to obtain the greatest possible use of all public funds, in order that the Treasury's borrowings might be kept at the lowest possible point. The Treasury, therefore, adopted the policy of designating and maintaining balances with general national-bank depositaries only at points where actually necessary for the performance of some essential Government business, and of limiting such balances to the minimum ones required to provide for the amount and character of the Government business transacted. The establishment of this definite policy necessitated SECRETARY OF THE TREASURY. 85 a complete examination and revision of all Treasury balances carried with depositary banks. During the fiscal year ended June 30, 1920, substantial reductions were accordingly made in the number of general national-bank depositaries of public mone3^s, as well as in the amount of the balances maintained therewith, which resulted in substantial savings to the Treasury. During the fiscal year 1921,, two complete analyses of the accounts of approximately 550 depositary banks have been made. As a result of these analyses the Treasury was able during the fiscal year 1921 to discontinue 86 gen-. eral national-bank depositaries, and to reduce the fixed balances of 178 such depositaries. During the same period fixed balances were increased in 49 general national-bank depositaries and 32 additional. general depositaries were designated. The total amount held by general national-bank depositaries to the credit of the Treasurer of the United States was reduced during the year from $12,644,214.62, as shown by the daily Treasury statement of June 30, 1920, to $9,497,962, as shown by the daily Treasury statement of June 30, 1921. * ' . Examination of the accounts of general national-bank depositaries during the year indicated that many such depositaries were maintained solely for the purpose of receiving deposits of surplus moneyqrder funds from postmasters. The balances maintained with these depositaries were, in the aggregate, substantial in amount. I t was found possible to make arrangements for the deposit of surplus money-order funds in these cases with other general national-bank depositaries and with Federal reserve banks, and thus to discontinue on July 15, 1921, approximately 230 general national-bank depositaries which had previously been maintained solely for the purpose of receiving deposits of surplus money-order funds. This effected a reduction of approximately $1,000,000 in the total amount of the fixed balances with general national-bank depositaries and reduced the number of general national-bank depositaries to 337. Limited national-bank depositaries are maintained solely for the purpose of receiving deposits made by the United States courts and their officers and by postmasters for credit to their ofiicial checking accounts. Such depositaries are not authorized to receive deposits for credit to the Treasuirer of the United States. On June 30, 1921, there were 187 limited national-bank depositaries, and the amount held by them and general national-bank depositaries to the credit of Government officers other than the Treasurer of the United States as shown by the daily Treasury statement of June 30, 1921, was $11,711,617.73. Since June 1, 1913, Government depositaries have been required to pay interest at the rate of 2 per cent per annum on daily balances. The amounts received from this source, exclusive of special deposi- 86 REPORT ON T H E FINANCES. taries under the Liberty loan acts, for the past nine fiscal years are as follows: 19131914 1915 '1916 '1917 1918 1919 1920 1921 i ± I n t e r e s t on Government deposits. ^ ^ _ • : L $122, 218. 89 1, 409, 426. 07 1, 222, 706. 93 791, 671. 45 703, 771. 76 1,134, 569. 09 5, 507, 742. 43 ' 1, 865, 975. 76 ' 2, ,577, 815. 07 The Treasury's special depositary system was maintained throughout the fiscal year in order to permit banking institutions purchasing Government securities, as offered from time to time, to make payment for them by credit, thereby retaining the proceeds of such sales in the form of deposits, until withdrawn from time to time as needed to meet current disbursements of the Government. Any incorporated bank or trust company is eligible for designation as such special depositary, in accordance with the provisions of department Circular No. 92, as amended and supplemented, dated April 17, 1919. At the close of the fiscal year 1921 there were 9,412 special depositaries, of which 4,487 were national banks and 4,925 were State banks and trust companies, holding Government deposits, as shown by the daily Treasury statement of June 30, 1921, amounting to $393,289,000. - In accordance with the department's regulations, the special depositaries also pay interest on Government deposits at the rate of 2 per cent per annum. The interest received on these deposits during the fiscal year was $3,512,308.02. The total amount received from April 24,1917, to June 30, 1921, was $46,892,373.38, as indicated, by semiannual periods and Federal reserve districts, in the following statement: I n t e r e s t collected to J u n e SO, 1921, by F e d e r a l reserve districts, on deposits in ' special depositaries on account of sales of Liberty bonds. Victory notes, Treasu r y notes., and certificates of indebtedness and income and profits t a x payments, under acts of AiJr. 2k, 1911, Sept. 2k, 1917, Apr. k, 1918, Sept. 2k, 1918, J u l y 9, 1918, and Mar. 3, 1919. F e d e r a l reserve district. Boston New York Philadelphia Cleveland ' Richmond Atlanta Chicago S t . Louis Minnea:)0.i3 Kansas City Dallas S a n Francisco N e w Orleans b r a n c h . $5,340.47 338,480. 60 1,044.64 2.52. 06 9,023.53 1,353.62 2,726.51 358,221.43 Total 1 Amended A p r . 24 t o J u l y 1 t o Dec, J a n . l t o J u n e J u n e 30,1917 31,1917. 30, 1918. figures. S495,044.28 2,418,335.72 2C0,276. 04 290,482.56 81,2.52.94 28,189. 21 300,42S. 59 56,412.34 32', 520. 68 39,634. 27 35,888. 58 137,896. 92 26,332.71 4,142,794 $757,34.5.98 2,486,301.63 557,068.79 803,219. 84 128,860.72 96,086. 74 658,048.19 268,726. 24 168,309.21 150,897. 61 81,191. 52 208,486.34 69,320.38 ,423,863.19 J u l y l to Dec. 31,1918. $1,138,915. 47 6,720,162. 97 1,059,668.15 872,392.10 503. 64 . 109, 144,165.99 974,334. 63 403,488.76 164,790.29 332 145. 49 268' 329. SS 377;421.12 79, 005.33 12,644,323.82 J a n . l to J u n e 30, 1919. $733, 867. 20 2.968, 858.77 .596, 436. 23 696, 750. 48 242, 735.18 203, 550.98 1,107, 3S9.81 1369, 783. 56 311, 793. 53 309, 106 79 132, 651. 09 590 ,811.02 1,140.55 ,3.51.885.19 2 Incomplete and subject to revision. SECRETARY OF T H E TREASURY. 87 Inlerest collected to J u n e 30, 1921, by Federal reserve districts, etc.—Continued. F e d e r a l reserve district. Boston NewYork-..Philadelphia Cleveland-.-. Richmond Atlanta Chicago St. Louis Minneapolis.-K a n s a s City , Dallas S a n Francisco. - . : — N e w Orleans b r a n c h . J u l y 1 to Dec, [Jan. 1 t o Junel J u l y 1 t o Dec. J a n . 1 t o J u n e 31, 1919. 30,1921. 30, 1920. 31,1920. S563, 524.88 3,336, 357.90 529, 102.^1 530, 146.39 555, 390.68 153, 908.04 817, 172.84 264, 058.53 171, 863.85 159, 047.57 182, 127.50 246, 486.13 40, 666.90 $254,689.51 1,887,688.21 171,509.48 352,082.30 140,635.35 82,811.99 355,685.31 100,947.90 104,223.41 95,489.75= 118,843.58 1182,833.46 161,682.62 7,549,854.02 3,909,122.87 Total 1 Revised Total. $131,904.55 837,038.64 123,242.32 98,748.63 29:202.82 17,182.07 159,607.51 45,418.04 19,254.89 49,622.84 15,256.09 97,164.11 23,774.93 $197,098.16 905,079.42 203,114.68 170,999.61 61,321.73 16,.393.10 87,765.18 55,839.57 39,930.85 40,237.12 17,151.75 64,542.38 5,417.03 $4,277,730.50 21,898,303.86 3,441,463.14 3,814,821.91 1,348,903.06 742,540.18 4,469,465.59 1,564,674.94 1,012,686.71 1,176,181.44 851,793.61 1,908,467.99 385,340.45 1,647,417.44 1,864,890.58 46,892,373.38 figures. During the fiscal year ended June 30, 1921, the Treasury maintained depositaries in France, Great Britain, Italy, Belgium, Canada, and Plaiti for the use of disbursing officers of the Government, especially of the Army and Navy, and to facilitate payments in foreign countries. These depositaries were designated under the authority vested in the Secretary of the Treasury by the act of September 24, 1917, as amended and supplemented. GOLD. The heavy imports of gold into the United States during the past 12 months have been a major factor in the improvement of the reserve position and the liquidation of loans of the Federal reserve banks. The excess of imports of gold over exports between November 1, 1920, and November 1, 1921, was $664,000,000, and the gold holdings of the Federal reserve banks increased during that period by about $800,000,000. With the exception of approximately $32,500,000. exported to Japan in November and December, 1920, no considerable exports of gold have occurred since November 1, 1920,, while large amounts have been imported from the following countries: United Kingdom (England), approximately $239,000,000; France, $201,000,000; Sweden, $61,000,000; British India, $31,000,000; Canada, $33,000,000. The imports and exports during the calendar year 1921, up to October 31, distributed by countries, are given in the following statement, issued by the Federal Eeserve Board: 88 REPORT ON THE FINANCES. Gold imports into and exports from the United States distt^ibuted by counti^ies^ Imports Exports Jan. 1 to Jan. 1 to Oct. 31,1921, Oct. 31, 1921.. Austria Belgium ". Denmark France Germany Greece : Italy Malta Netherlands Norway Poland and Danzig Portugal Russia in Europe Spain Sweden Switzerland Turkey in Europe United Kingdom—England. Total EuropeBermuda Canada Costa Rica Guatemala. Honduras • Nicaragua Panama Salvador Mexico Cuba..---British West Indies Virgin Islands of United States-. Dominican Republic Dutch West Indies Total North America.. Argentina-. Bolivia Brazil Chile , Colombia - EcuadorBritish Guiana.. Dutch Guiana-Peru.. Uruguay Venezuela-i Total S.outh America-, China - -; Chosen British India Dutch East Indies-French East Indies.. Greece in Asia .Hongkong Japan-.--' Palestine and SyriaTurkey in Asia Total Asia. Austraha New Zealand Tahiti Philippine Islands... Abyssinia British West Africa-. British South AfricaEgypt Portuguese Africa Total, all countries. $9,000 3,760,711 3,411,203 •172,586,867 16,962,608 715,745 207,953 614,751 • 18,749,085 1,534,985 400 23,040 85,000 3,292,453 59,130,340 572,957 484,633 169,954,721 452,096,452 103,290 32,166,404 768,459 511,909 200,760 692,113 2,384,714 788,437 4,674,786 362,637 561,413 150,000 25,000 5,392,107 48,782,029 1,059,237 5,031 93,122 289,400 10,212,329 643,960 135,583 60,132 1,181,337 6,127,810 1,135,980 .20,943,901 17,611,467 4,860 30,878,16^ 1,025,79S 6,005,892 1,195,204 5,660,825 2,208,234 881,384 1,448,793 66,920,625 $200; 2,643,013. 2,643,213: 2,450,842: 5,350,1041 250,844-;. 8,051,790.' 24,300' 24,300'« 1,179, OOOOO, 000' 9,163,755. 10,402,755- 11,703,027 2,549,305 1,082,596 21,965 13,250 51,823 4,410,980 562,073 609,138,026 21,122,358- 89 SECRETARY OF THE TREASURY. The following table gives in millions of dollars the monetary stock of gold in the country on the first day of each month and the gold holdings of the Federal reserve banks about the first of each month since. November, 1920: . Date. 1920. November December January February March April May Julie...--.. July August September October November-..'. Stock of . Total gold monetary reserves gold in tlie of the comitry, in Federal millions reserve of dollars. banks.1 2,002 2,023 1921. 2,0802,112 2,163 2,245 2,343 2, 409 2,478 2,553 2,656 2, 733 2,800 - ^ Per cent increase from November, 1920, to November, 1921 c9.9 This increase in the stock of gold in the country is much greater than for any previous period of equal length. Since 1914 there have been two important periods of heavy gold imports, the years 1915, 1916, and early part of 1917, when the allied nations were paying for war supplies from America, and the past 12 or 15 months. Between these periods there was about a 3^ear, from April, 1919, through March, 1920, Avhen the United States was liquidating debts in South America and the F a r East, and during that time there was a large excess of exports. Therefore the present stock is only about $383,000,000 above the amount in May, 1917, although it is $766,000,000 higher than in November, 1920. The changes in the monetary stock of gold since 1913 are shown in the following table: E n d of y e a r - 1913 1914 1915 1916 1917 1918 1919 1920 1921 ( N o v . 1) . - -^ Stock of monetary gold in the Per cent United of 1913. States, in millions of dollars. 1,924 1,816 2,312 2,865 3,040 3,081 2,788 2,785 3,505 100 94 120 149 158 160 145 148 182 90 . REPORT ON T H E FINANCES. The figures show that at the present time 80 per cent of the monetary stock of gold in the United States is in possession of the Federal reserve banks. The gold in the country has gravitated toward the Federal reserve banks since our entrance into the war in 1917, when the policy of gold conservation was adopted. During the war period gold conservation was of vital importance as a protection to the growing credit structure, and even in peace times gold is inost efficient when concentrated in the form of bank reserves and for use in international transactions. With the increased importations of gold, the liquidation of bank loans, and the general improvement in credit conditions during the past year, the pressure for the concentration pf gold no longer exists, but the demand for gold for internal circulation is relatively slight and the increased stock of gold in the country has naturally been reflected 'in the reserves of the Federal reserve banks. Neither the Treasury nor the Federal reserve banks maintain any restrictions on gold payments, and gold may be had freely on demand in exchange for gold obligations. Gold production. Due to the unfavorable influence of high prices and consequent high costs of production on the mining and reduction of gold, there have been further discussions pf proposals for subsidizing the goldmining industry. A bill has been introduced in the House of Eepresentatives (H. E. 5025) " To provide for the protection of the mon-' etary gold reserve by the maintenance of the normal gold production of the United States, by imposing an excise, for revenue and other purposes, upon all gold used for other than monetary purposes, and by the payment of a premium to the producers of newly-mined gold, and providing penalties for the violation thereof." The Treasury does not approve this bill or other measures for subsidizing the goldmining industry, believing that the problem will ultimately adjust itself and gold mining become more remunerative as the purchasing power of the dollar increases. The position of the Treasury with reference to this question was stated in some detail in a letter dated September 30, 1921, a copy of which is attached as Exhibit 75, page 376, in reply to a resolution signed by 22 Senators from the Western States and submitted to the Secretary of the Treasury, requesting an opinion as to H . E. 5025. To this letter is attached a copy of a letter from the Secretary of the Treasury to the chairman of the Committee on Ways and Means, dated May 9,1921, with respect to the same bill. The production of gold in the United States, as well as in other countries of the world, is still below prewar figures. This is .true even of the South African gold fields, notwithstanding the arrange- ' . . SECRETARY OF THE TREASURY. \) i ments for sale to the highest bidder of the product, after shipment to London, by which arrangements producers of that region reap the ben- efits incident to exchange conditions. These benefits have averaged since January, 1920, according to the June, 1921, report of the Ehodesian Chamber of Mines, more than £1 5s. per ounce above normal, about 30 per cent. The United States production in 1920 is estimated at $51,186,900, a reduction from the prior year's output of over $9,000,000. The industries of the United States are 'estimated to have consumed in 1920 new gold to the value of about $54,000,000, approximately $3,000,000 more than the domestic production. Russian gold. The Treasury, acting in accordance with the advice of the Department of State, does not accept at United States mints and assay offices gold known or suspected to be of Soviet origin, but does regard as free from any suspicion or possibility of Soviet origin gold which bears the official coinage or mint stamp of recognized" governments, including for this purpose Germany and Mexico. Privately stamped gold bars are accepted only if accompanied by a satisfactory certificate of ownership and non-Soviet origin executed by a responsible bank or banker, or by other satisfactory proof of new mine production or other facts negativing Soviet" origin. SILVER. Silver purchases under the terms of the. Pittman Act, approved April 23, 1918, have reached a total of approximately 80,000,000 ounces up to November 1,1921, leaving about 128,0.00,000 ounces yetto be acquired to replace the silver dollars melted under the terms of that act. The coinage of this bullion is proceeding rapidly, $72,178,000 having been executed to November 1, 1921, at which date the uncoined stock of Pittman Act silver on hand was about 25,000,000 ounces. ^ The total number of silver dollars melted under the terms of the act of ApriL 23, 1918, was 270,232,722, there having been used for subsidiary coinage during the past year 111,168 beyond what has previously been reported. As the new silver dollars become available silver certificates are issued against them. The issue of these silver certificates permits the retirement of the Federal reserve bank notes issued at the time silver certificates were retired in order to make silver dollars available for melting, and also permits the retirement of the certificates of indebtedness held as security for the Federal reserve bank notes, thus reducing the public debt and the interest charges thereon. 92 REPORT ON T H E FINANCES. " Silver purchases under the act of April 23,1918, by months, follow:: 1920—May June July August September October November— December.. 1921—.January-. February Ounces. 332, 088 6,168, 505 3, 288, 856 3, 429, 277 3, 815, 733 4, 634, 860 3, 638, 870 4, 599,172 4, 677,188 4, 615, 842 1921—March Aprn May June July August September October Total 1 ., Ounces-... 5,912,0654, 334, 741 6, 836, 500' -•-— 4, 442, OOO4, 670,119^4, 913, 614 3, 471, 436> 5, 917, 997 79, 698, 863"- THE MINTS. The three coinage mints have been operated upon an overtime basis throughout the entire 37ear. In quantity of coin manufactured, thefiscal year ended June 30, 1921, was the third largest in the history of the service, the total number of pieces executed being 553,868,492. The heavy demand for subsidiary coinage extended to the close of the calendar year 1920. The resumption of coinage of silver dollars,, which began in February, 1921, after a lapse of 17-years, constituted the most notable event of the year. This coinage has been entirely from the'stock of bullion accumulated and still being purchased under the terms of the Pittman Act approved April 23, 1918, and is beingexecuted pursuant to the express requirements of the statute. The inint service has made a special effort to accelerate the coinage of silver dollars in order to convert the silver bullion into standard, silver dollars with the minimum of dela}^, and thus enable the Treasury to reissue against the newly coined dollars the silver certificates retired when the silver dollars were broken up and melted in 1918 and the resulting silver bullion sold under the Pittman Act. Silverdollar coinage is likely to continue on a large scale during the. period of silver repurchases under the statute, and for the time being, therefore, will proba/bly overshadow other coinage. The mints have also executed important orders for fo'reign coinage, and have now resumed the coinage of gold on a moderate scale. During the year under review the coinage mints have been reorganized. New methods of handling bullion and new processes of coinage have been introduced, and the result has been a marked expansion of coinage capacity and a more economical and efficient administration of the general business of the mint service. The largest amount of coin and bullion on hand at any period since the establishment of the mint service is now carried in the coinage mints and the New York assay office. Transfers of the respective establishments to new superintendents were effected after a careful SECRETARY OF THE TREASURY. 93 check proved that all values on hand agreed with the amounts called for by the records. The occupancy of the new building for the assay office at New York was interrupted by the explosion in Wall Street in September, 1920. The restored building was opened to the public for business •on March 3, 1921. T H E FEDERAL F A R M LOAN SYSTEM. I n the last annual report allusion was made to the litigation then pending Avhich challenged the constitutionality of the farm loan act. On February 28 of the present year the Supreme Court of the United States rendered a decision in the case ux^holding the constitutionality of the act in every respect. The effect of this decision was to establish the Federal Farm Loan System firmly as a part of our financial system and to clear away the legal difficulties which had impeded t h e operation of the system and the sale of land-bank bonds. Shortly ^after the decision of tlie Supreme Court, Congress further amended the Federal farm loan act and changed the optional call period so that the banks might issue bonds which could not be callable until 10 years from the date of issue. This amendment was deemed desirable in order to add to the attractiA^eness of the bonds to investors, -and it is believed that it has proven exceedingly helpful in the sale of Federal land-bank bonds. As soon after the Supreme Court decision as conditions permitted and bonds could be printed and made ready for delivery, a general^ offering of $40,000,000 of 5 per cent bonds was made by the several federal land banks. The offering was announced on April 18, 1921, :and, notwithstanding the unfavorable financial conditions at the time, the sale was entirely successful. Another offering of $60,000,000 »of 5 per cent Federal land-bank bonds was announced on October .3, 1921, and was likewise successful. I n May the Federal land banks 'began the taking of applications and closing of loans, and since then have gone steadily forward to normal activit}^ Loans have been closed as follows:'July, $9,204,900; August, $12,506,000; September, $12,407,400; October, $13,300,200. The special session of Congress further amended the farm loan act hy enlarging the depositary provisions authorized by section 32, and made if'permissible for the Secretary of the Treasury to deposit with' t h e Federal land banks, in the form of emergency deposits, a sum ^quai to the difference between the combined capital of the banks and $50,000,000. The purpose of this enactment was to provide temporary facilities for the Federal land banks when needed between bond sales. I n anticipation of the October bond sale recourse was had by 94 REPORT ON THE FINANCES. two of the banks to the'enlarged depositary privilege, and dieposits were made by the Treasury with these banks in the sum of $3,250,000, all of which have been repaid from the proceeds of the October bond sale. The Federal Farm Loan S37stem seems now to have become thoroughly established in the confidence of investors and in the minds of agricultural borrowers. Indeed, the demand for loans, OAving to the general stress among the agricultural interests, has been for the time being in excess of the supply of funds and in excess of the physical capacity of the Federal land banks. The system is functioning smoothly, however, and loaning funds to American farmers on very favorable terms at a rate exceeding $150,000,000 per year, which, no doubt, exceeds any anticipations as to its service, and would in normal times f ulty respond to the calls upon It. I t should be borne in mind that the Federal Farm Loan System was not designed as an emergency measure, but is a steady-going and permanent enterprise. I t should be operated accordingl}^, responding, of course, as far as circumstances permit, to extraordinary conditions, but it must not be asked or permitted to sacrifice its permanent and safe upbuilding to temporary expediency. Joint-stock la/iid hanks. The joint-stock land banks, finding that their bonds did not react to the favorable decision of the Supreme Court to an extent sufficient to enable them to market 5 per cent bonds, sought an amendment to the farm loan act authorizing the issuance of bonds bearing a rate as high as 5J per cent. Legislation to this effect was enacted, and pursuant to it joint-stock land bank bonds in the sum of $18,000,000, bearing 5^ per cent interest, have been sold to the public to October 31, 1921. F A R M E R S ' SEED-GRAIN LOANS. The following provision was incorporated in the agricultural appropriation act of 1921, approved May 31, 1920: Tbat a yield of five bushels or less per acre of wheat on lands owned by those in the drought-stricken regions who borrowed money from the Government of the United States for the purchase of wheat for seed be, and the same is hereby, declared to be a failure, and the borrower whose yield was five bushels or less per acre be, and he is hereby, released from repayment of the amount borrowed by him from the Government: Provided, That nothing herein shall release the borrower who signed a guaranty fund agreement and whose crop was not a failure from making the contribution provided for in such agreement, but said guaranty fund shall be used as stipulated in the agreement to. the settlement of the loans to those whose crop was a failure. 95 SECRETARY OF THE TREASURY. Pursuant to this statutory declaration and the provisions of the circular issued thereunder by the Treasury Department and the Department of Agriculture, entitled " Joint Circular No. 6," dated August 10,1920, prescribing "Eegulations relative to release of farmers' seed-grain loans for wheat planting in drought-stricken areas," the Treasury Department, during the past year, has released a large number of loans to farmers whose crops were failures. The releases have been approved and certified by the several Federal land banks of Wichita, St. Paul, or Spokane (through which the original loans were made) and recommended by the Farm Loan Board. The Treasury has made substantial collections up to date, hoAvever, on account of repayments of loans not released by the act of May 31, 1920, payments of interest on loans, and contributions to the guaranty funds. The following table shows the total number of loans, the total amount loaned, together with the amount released, the amount of principal collected, the amount of interest collected, the contributions to the guaranty funds, and the balance of principal outstanding uncollected, as of October 10, 1921: , Federal land bank. Wichita St. Paul Spokane Number ofloans. Amount loaned. Principal collected. of Interest Principal Balance principal collected. released. imcollected. Guaranty fund. 8,282 $1,891,132.75 $1,365,510.98 $182,127.70 $343,494.07 1,138 67,031.02 187,732.26 103,607.17 358,370.45 6,149 1,951,379.50 . 10,361.03 1,244,128.50 696,889.97 $75,208.79 1,764.88 478.30 $246,391.95 443.20 24.15, 1,442,903.03 1,613,988.46 1,143,991.21 77,451.97 246,859.30 15,569 4,200,882.70 WAR R I S K I N S U R A N C E . Prior to the beginning of the fiscal year extending from July 1, 1920, to June 30, 1921, serious defects had become manifest in those provisions of the Avar risk act which provided for the relief of disabled soldiers and of dependent relatives of those who had sacrificed their lives in the Nation's cause. Eemedial legislation had been secured to adjust some of these shortcomings, and authority for further improvement of service to the World War veterans had been sought of Congress without definite accomplishment during the session of Congress which adjourned June 5, 1920. At no time^ however, since the passage of the act which created the Bureau of War Eisk Insurance had it been faced with graver problems than those involved in the following two developments, which by June 30, 1920, had become acute and were pressing for solution. The first was the lack of suitable property available to the Government for conversion into hospitals and sanatoria to accommodate the unforeseen number of disabled former service men, together with an appalling inadequacy of the hospital facilities already in existence and of which use was being made, both as to actual space 96 REPORT ON T H E FINANCES. accommodation and as to the equipment and environment by which the World War patient might be given that essential advantage for recovery, freedom from needless physical, emotional, or mental strain. The second problem was the urgent necessity, if the bureau Avas to afford efficient and expeditious relief for war victims, of a coordination of its functions into a unified agency embracing the Bureau of War Eisk Insurance, the Federal Board for Vocational Education, and that part of the United States Public Health Service which had been given charge of the hospitalization of former serAdce men. These.three agencies had been Avorking in harmony and with about as close and effective cooperation as was possible under the law as it stood, 3^et that regime of divided responsibility Avas inherently wrong. The only solution of these difficulties, it had been growing increasingly apparent, lay in securing a unity of control in the hospitalization, compensation, and restoration of. the disabled service man, with the executive responsibility vested in one headquarters with authority so complete and thoroughly coordinated that it could delegate the carrying out of its policies to units representing all its threefold functions in the field. Unremitting effort on the part of the Bureau of War Eisk Insurance to attain immediate relief and an ultimate remedy for these conditions continued throughout the entire fiscal year 1921. Reorganization. On November 29, and again on December 20, 1920, the Director of the Bureau of War Eisk Insurance had appeared before the Committee on Appropriations of the House of Eepresentatives, urging an increased appropriation for the establishment of additional offices in the field. No legislation providing for the physical coordination of the Government's A^eteran activities was secured, hoAvever, during the last session of the Sixty-sixth «Congress. The Wason (bill, Avith its liberalizing features, was passed by both the House of Eepresentatives and the Senate, but it remained unsigned by the President at the time of adjournment, March 3, 1921. . Before the new administration Avas a month old, hoAvever, on March 28, 1921, the President a'ppointed a committee to be summoned to Washington for the purpose of making an inquiry " into the administration of the laws providing for the care of disabled soldiers." After consideration this committee. reported to the President under date of April 7, 1921, as follows: SECRETARY OF THE TREASURY. The 97 PBESIDENT or THE UNITED STATES : The committee appointed by you to study and report upon the conditions as they now exist in the Government deDartments concerned with service for the ex-soldiers, sailors, and marines of the World War, and to propose a program to meet immediate needs as well as to provide for the future requirements, to the end that the intention of the Congress to give the full measure of justice to ex-service men may be adequately, promptly, and generously met, begs to submit the following report (which is concurred in by your personal representative. Brig Gen. Charles E. Sawyer). In order to accomplish the purposes above named, your committee has called before it the following organizations and individuals: Consultants on hospitalization program appointed by the Secretary of the Treasury. The Director of the Bureau of War Risk Insurance and other officers of this bureau. The Surgeon General of the United States Public Health Service. President Board of Managers of the National Home for Disabled Volunteer Soldiers. The Director of the Federal Board for Vocational Education. Representatives of the American Legion, National Committee for Mental Hygiene, National Tuberculosis Association, the Surgeon General of the Army and the Surgeon General of the Navy, and the American Red Cross. And, after having considered the testimony and made further examination of the facts and conditions, has arrived unanimously at the following conclusions : 1. At the time the laws providing for the compensation, hospitalization, and vocational rehabilitation of the disabled were enacted the situations which would' successively arise, could not be foreseen, with the result that the laws are not coordinated and do not proceed or work in harmony. As an example, three distinct and separate governmental agencies without a common authority were created for and are now engaged in executing the laws for the relief of the disabled, namely, the Bureau of War Risk Insurance, the RehabiUtation Diyision of the Federal Board for Vocational Education, and the United States Public Health Service. The result is that the ex-service person finds it extremely difficult to obtain the prompt, generous, and sympathetic treatment which the Congress and the country intended he should receive. 2. It is apparent that much, confusion and inefficiency are the results of the present distribution of responsibility among the three main Government agencies designated by law to carry out the various services to veterans, and the utter lack of central control over these three agencies and such other cooperative governmental departments and bureaus as have been utilized in carrying out the purpose of legislation. 3. In spite of decentralization in two of the services concerned, the inability of the third agency (the Bureau of War Risk Insurance) under the law to make a corresponding decentralization of its work has caused the failure of effective results from the decentralization which has already been carried into effect by the other two. 4. Not unwillingness to serve or reluctance to cooperate but divergent provisions of laws and limitations placed by legal decisions have prevented effective coordination in these three respective services. 5. Limitations in the interest of presumed economy have been placed upon the authority of those responsible for these GoA^ernment agencies in the employment of personnel, both as to number and quaUty. This has operated to the serious embarrassment of the various agencies engaged in obtaining and re7(X)73—FI1921—7 98 REPORT ON THE FINANCES. p taining the quality of personnel upon which the efficiency of their departments depends. If the statutory limitations upon the nuinber and grade of the personnel in the Bureau of War Risk Insurance, as specified in the legislative executive, and judicial appropriation act for the fiscal year ending June 30, 1922,. are not removed before the effectiA^e operation of this act (July 1, 1921), the embarrassment to the service of this bureau Avill be serious. 6. Lack of provision for hospital construction to provide facilities, commensurate Avith' the proved and declared needs of the immediate future and for some years to come has been of such a degree as to prevent even the most willing cooperation among Government departments from providing hospital and medical care so distributed as to place and quality of service to accommodate the invalid Avards of the Nation. It is clear that although additional beds in hospitals maintained by the several departments of the Government are available complete use of them has not been possible by reason of certain fundamental limitations, chief of Avhich is the lack of legal authority to secure adequate medical, nursing, and other hospital personnel. 7. The resources of the United States which were made available for the care of the men in the service have not yet been fully availed of or thoroughly mobilized so that the ex-service beneficiaries could have had at their disposal the best that the medical and associated professions could provide throughout the United States. 8. Three possible causes of abuse which may develop are the too generous or unjust payment of money as compensation, inadequate inspection of hospitalization, and medical care, and the improper supervision of trainees of the Federal Board for Vocational Education, all combining to create a weaker rather than a stronger moral fiber in the beneficiaries. The prevention of abuses in these three directions is not possible by legislation, and only indirectly by regulation. They can be prevented only by the employment of reliable personnel in direct contact Avith the individual beneficiary and held accountable by a _single directing head. No regulations were called to the attention of the committee which indicated the possible correction of any one of these abuses. The extent of such abuses as Avere disclosed Avas not greater than might reasonably be expected in the uncoordinated operation of any such activities as those for soldier rehabilitation, involving so many Government officers and such a large proportion of the population. The committee heartily approves the principle of vocational education for the disabled veteran, but it calls attention to the fact that an undertaking of this magnitude on the part of the Government for the upbuilding of our citizenry, AAath the tremendous financial outlay involved, makes it essential that CA^ery care be taken that no abuses arise to cause injustice to the.man or the Government. 9. Some existing regulations dealing with compensation and insurance haA^e developed certain inconsistencies and possible injustices to the beneficiaries which should be corrected either by a more liberal interpretation of existing statutes or by the issuance of regulations modifying those in eftect. I'our committee is unanimous in offering the following recommendations: 1. That there be created the Veterans' Service Administration, and that there be transferred to it the Bureau of War Risk Insurance, the Rehabilitation Division of the Federal Board for Vocational Education, and such part of the Public Health Service as is necessary in dealing Avith the beneficiaries of the Bureau of War Risk Insurance and of the Rehabilitation Division of the Federal Board for Vocational Education. That there shall be at the head of the Veterans' Service Administration a director general, AA^ho shall be responsible to the President for all the activities SECRETARY OF THE TREASURY. 99 now authorized by law in the three agencies transferred; that he shall utilize all possible gOA^ernmental agencies for the hospitalization and medical care of the disabled veterans of the World War, maintaining a strict inspection service thereof, and wherever and whenever the governmental facilities prove inadequate shall have full authority to secure the facilities necessary either by allotment of appropriations to governmental agencies or by contract with civilian agencies either for purchase, lease, or otherwise. The relations of the director .general and the Veterans' Service Administra-. tion to the other governmental agencies upon which he may call for hospital" and medical care and service, as well as the relation to organized private agencies in the medical, educational, and social supervision and care of the ex-service beneficiaries of the Government, are suggested on the chart of organization of such proposed administration accompanying this report. 2. That the law creating this administration be so drawn that allof the present inconsistencies in the various laws creating and affecting the three agencies transferred shall be eliminated, that full authority be given to the director general to decentralize all activities, and particularly that no statutory limitations with respect to the number and salaries of the employees he is authorized' to engage within the limits of the appropriations be incorporated. 3. That pending the passage of such law the Secretary of the Treasury shall issue orders to the Director of the Bureau of War Risk Insurance and to the Surgeon General of the United States Public Health Service transferring to the Bureau of War Risk Insurance all the activities of the United States Public Health Service, together Avith the personnel engaged in providing medical services for the beneficiaries of the Bureau of War Risk Insurance and the Federal Board fdr Vocational Education, with the exception of the^hospital and dispensary care. , 4. That an immediate extension and utilization of all Government ho'spital facilities be put into effect,- together with the mobilization of such civilian medical services as may prove practical. 5. That a continuing hospital-building program to provide satisfactory care for the disabled veterans of the World War be entered upon at once. The committee of hospital consultants appointed by the Secretary of the Treasury, in cooperation with the Surgeon General of the United States Public Health Service, shall submit recommendations as to the type of buildings and the location of same. The necessary appropriations to provide for such permanent program to be passed at the next session of Congress. 6. That in addition to the recognized medical and educational services now provided by the Government, such humanizing services be provided in the district offices and in cooperation with private agencies in the homes of the beneficiaries as will give these beneficiaries not only financial aid and the medical and educatienal services at present provided for by law, but such helpful neighborliness in their contact Avith the Government as will make them feel that the whole Nation is intimately concerned in their Avelfare and rehabilitation. . 7. That the $18,600,000 appropriated by - the Sixty-sixth Congress for the building of new hospitals and the enlargement of existing institutions be utilized for these purposes without any delay. It can not be too strongly emphasized that the present deplorable failure on the part of the Government to properly care for the disabled veterans is due in large part to an imperfect organization of governmental effort. There is no one in control of the whole situation. Independent agencies by mutual agreement now endeavor to coordinate their action, but in such efforts the joint action is too often modified by minor considerations, and there is always lacking that complete cooperation which is incident to a powerful superimposed author- 100 . . REPORT ON T H E FINANCES. ity. No emergency of w a r itself was greater t h a n is the emergency Avhich confronts t h e Nation in its duty to care for those disabled in i t s service and now neglected. The summoning, of this.committee by you is an earnest to the country t h a t you a r e convinced of the vital n a t u r e of this problem and t h a t you a r e determined to secure a prompt and effective solution thereof. T h e m a n to whom this i m p o r t a n t mission is intrusted by you will receive in t h e performance of his arduous duties the whole-hearted and enthusiastic support and cooperation of all veterans and-all other p a t r i o t i c Americans. No Cabinet officer or Assistant Secretary burdened with other duties should be t h e one to whom t h e man charged with t h e welfare of t h e disabled saviors of our country should report. H e should report directly to t h e President. H i s place should be held in t h e public esteem as one of the greatest honors t h a t the President can bestow, a s the service he can render should be of untold value to the Nation. (Signed) CHARLES G . D A W E S , Chairman. F . W. GALBRAITH, Jr., MILTON J. FOREMAN, Mrs. H E N R Y R . R E A , T . V. O'CONNOR, THEODORE ROOSEVELT, FRANKLIN D'OLIER, MABEL T . BOARDMAN, JOHN L. LEWIS, T H O M A S W . MILLER, H E N R Y S . BERRY. On April 19, 1921, action based upon the third recommendation of the committee was taken, and the Secretary of the Treasury issued an " Order relative to the transfer of certain activities of the United States Public Health Service relating to beneficiaries of the Bureau of War Eisk Insurance, including trainees of the Eehabilitation Division of the Federal Board for Vocational Education, to the Bureau of War Eisk Insurance." By this order the complete transfer of the functions of the Public Health Service dealing with former service men, except only the business, of running hospitals, was effected. Coordination of the Federal Board for Vocational Education with the other two agencies which had been thus consolidated in the W a r Eisk Bureau was brought about by voluntary agreement between the Director of the Federal Board and the Director of the Bureau of W a r Eisk Insurance. FolloAving these arrangements a coordinating board was named to proceed at once to the Avork of reorganization in the field. I n each district the various offices of the three Government agencies acting for soldier relief were brought under one roof. The district superAdsor Avas made chairman of a joint board to allocate work, simplify procedure, combine files and records, combine supply purchases and combine health and nursing functions. I n the combined office a single Personal Service Section was created and the disabled former service man who presented himself to the office found this section ready to take him in hand, find out his needs, and, whether it was a matter of a first application for compensation, a readjustment of award, a need for physical examination or of hospitalization or whether he was seeking post-war reeducation'to improve his chances in life, the Govern- SECRETARY OF THE TREASURY. 101 ment agencies to be called on for starting the necessary procedure were all represented in that group. At the close of the fiscal year the committee oh reorsranization had visited 10 of the offices in the field. The principle of coordination in the Government's activities for the rehabilitation of former service men had been accepted; the decentralization of the three united functions had made of the representatives of the Bureau of W a r Eisk Insurance a mobile force throughout the country for bringing service to the ^ service man. This plan was pursued until the passage by Congress of the Sweet bill on August 9, 1921. B37 this act the coordination was definitely accomplished and the threefold activities in respect to veterans' relief were consolidated in the United States Veterans' Bureau, an independent establishment responsible to the President. The Bureau of War Eisk Insurance thereby ceased to exist as a Treasury bureau, and its functions Avere transferred to the new Veterans' Bureau. War risk organiscition and personnel. Shortly after assuming office as Director of the Bureau of War Eisk Insurance, the director, on May 4, 1921, appointed a planning committee composed of four members, men through long association with the bureau thoroughly conversant with its duties and problems, who, after a survey of the entire bureau, were to make recommendations to the director as to means of eliminating the duplication and overlapping of work in the various-divisions. Acting on °the recommendation of this committee, the director Avithin a short time had discontinued in their entirety two divisions, the Liaison DiAdsion and the Field Investigation 'Service, distributing the work which had been performed by them to more logical locations in those divisions in which the major part of similar or identical functions were being performed. Within the remaining . chief divisions of the bureau a consolidation was effected by abolish- ^ ing the detailed classification of work under numerous sections and bringing several sections of related activities'under one head. I n this way 15 sections were eliminated as separate entities and 4 centers of supervision over the' same work established instead. The director, moreover, considering it essential that the office of the director should have a definite and accurate control of the administrative functions of the bureau itself, early in June, 1921, made both the office of the chief clerk and the Personnel Division of the bureau subdivisions in the organization of his office. On July 1,1921, at the close of the fiscal year the main divisions of the bureau were as follows: 1. Marine and Seamen's Division. 2. Allotment and Allowance Diyision. 3. Insurance Division. 102 REPORT ON T H E FINANCES. 4. Compensation and Insurance Claims Division. 5. Medical Division. 6. Legal Division. 7. "Finance Division. A summarized stateinent of operations in the bureau and of the status of each division as of July 1, 1921, appears in the abstract which folloAvs, on pages 414 to 432 of this report. S O L D I E R S ' AND SAILORS' CIVIL R E L I E F ACT A N D BONDS. Applications representing commercial insurance with a face value of $12,526,956.29 have been approved by the Bureau of W a r Eisk Insurance as submitted by members of the military and naval forces of the United States, asking protection of payments of insurance premiums thereon, as provided in Article I V of the act effectiA^e March 8, 1918, entitled "An act to extend protection to the ciAdl rights of members of the Military and Naval Establishments of the United States engaged in the present war." The above amount covered 7,745 policies, and the amount of the yearly premiums given this protection was $362,399.50. . ^ There are still 146 policies with premiums protected under this laAV representing commercial insurance in the value of $273,078.32, the amount of premiums due on June 30, 1921, being $25,603.74. As a guaranty for the payment of such premiums only $100 face amount of additional soldiers' and sailors' civil relief insurance bonds were issued during the fiscal year 1921, making the total issues for this account $195,500. During the fiscal year 1921, $141,100 of these bonds were retired, which, with retirements of $600 made during prior fiscal years, makes the total retirements $141,700, the balance, $53,800, being outstanding on June 30, 1921. DISTRICT OF COLUMBIA T E A C H E R S ' R E T I R E M E N T FUND. T h e act approved June 5, 1920, amended the act of January 15, 1920, with respect to the duties of the Secretary of the Treasury in connection with the retirement of public-school teachers in the District of Columbia. Beginning Avith July 1, 1920, the administration of the act was vested in the Commissioners of the District of Columbia, with provision for the investment of the fund b}^ the Treas-. urer of the United States upon the basis of information as to amounts available furnished by the commissioners. U p to the close of business June 30, 1920, the total credits to the fund had been $58,366.78, and in the fiscal 3^ear 1921 moneys covered to the credit of the fund amounted to $197,861.67, making an aggregate of $256,228.45. The investments held by the Treasurer of the United States on June 30, 1921, were all Liberty bonds bearing interest at the rate SECRETARY OF THE TREASURY. 103' of 4^ per cent per annum, in the total face amount of $227,450, of which $179,100 face amount Avas purchased (luring the fiscal year 1921. The undrawn balance in the fund at the close of the fiscal year 1921 was $42,761.79. HOSPITALIZATION. The Sixty-sixth Congress of the United States passed Public Act 384, appropriating $18,600,000 for the provision of hospitals for the veterans of the World War. This was signed by the President on the 4th of March, and made the Secretary of the Treasury responsible for the provision of these hospitals. On the 16th of March the Secretary appointed a small group of consultants, composed of Dr. William Charles White, chairman, representing the National Tuberculosis. Association; Dr. George H. Kirby, representing the National Mental Hygiene Association; Dr. Frank Billings, representing the American Medical Association; and Mr. John G. Bowman, Avho, as executive officer of the Ainerican College of Surgeons, had visited and inspected most of the hospital institutions in the United States. These consultants met immediately and made a careful study of the hospital needs of the Bureau of W a r Eisk Insurance. They took into their counsel an advisory committee of expert men loaned to them by the National Tuberculosis Association, the National Mental Hygiene Association, the Public Health Service, the National Home for Disabled Volunteer Soldiers, and the Bureau of War Eisk Insurance. They heard all claims for hospitals from different parts of the country. They secured advice from members of the Army medical service, the I^ avy medical service, the Catholic Hospital Association, and numerous other interested bodies and individuals. While these hearings were proceeding, a corps of workers was busy plotting the various existing hospitals and other institutions being used for the care of ex-service men throughout the United States. Careful studies were also made of lines of transportation, distribution of ex-service men, special climates, ebb and flow of the sick population, types of disease represented among the beneficiary group, and other factors of importance, and these were carefully prepared in chart and map form as a basis for location of new hospitals. The consultants, with their advisory committee, have worked steadily since the time of their appointment, and in accordance with their recommendations the Secretary of the Treasury has allotted the moneys appropriated by the statute as follows: Amount allotted to each ..project. Date of each allotment. United States Public • Health Service No. 27, Alexandria, La. $60,000 1921. June 15 United States Pubhc Health Service No. 63, Lake City, Fla. Umted States Public Health Service No. 50, Prescott, Ariz. 300,000 May Hospital. 3 600,000 ...do Number of beds.. None Condition of plans. Type. T. B.. Completion of hospital. Completed. June 23,1921 January, 1921 100 .do., .do-, July 20,1921. March, 1922.. 422 .do-. .do-. June 4,1921. May, 1922.... United States Public Health Service No. 62, Augusta, Ga. 814,000 Aug. 2 265 N. P . .do.. United States Public Health Service, No. 55, Fort Bayard, N. Mex. United States Public Health Service, No. 60, Oteen, N. C. United States Public Health Service, No. 42, Perryville, Md. National Home for Disabled Volunteer Soldiers, Milwaukee, Wis. National Home for Disabled Volunteer Soldiers, Dayton. Ohio. National Home for Disabled Volunteer Soldiers, Marion. Ind. Provisional hospital No. 1, Fort Walla Walla, Wash. 850,000 May 28 250 T.B. ..do-. 748,000 Aug. 2 200 500,000 May 28 300 1,400,000 June 27 Work started at site. Ready to commence work as soon as site is acquired; now with Department of Justice; probably 30 to 60 days. Contract awarded"^Nov. 9, 1921. Date completion dependent upon acquisition of title. Subject to early acquisition of site. (See Augusta) N. P do.. Sept. 19,1921 May, 1922 500 T. B do., Bids due Dec. 19, 1921.. July or August, 192 • 750,000 ...do 250 ....do do., Bids due Nov. 29,1921.. June, 1922 100,000 ...do 50 do-. BidsdueDec. 15,1921.. May,1922 do-. Aug. 15,1921. ....do..-. 450,000 JMay 28 45,000 •-... N. P 165 T . B i?.—( Restoration of mess hall destroyed by fire; delayed by slow shipments of surplus property. Delayed by slow shipments of surplus property, in Ueu of purchasing new materials obtainable in shorter time. Commencement of work delayed pending acquisition of title to property.i O O June, 1922- do-- do Remarks. See Aiigusta.' c U2 Same as Prescott Provisional hospital N o . 2. F o r t L o g a n H . Roots, Little Rock, Ark. 25-, 000 I May Fort McKenzie, W y o . . . Provisional hospital N o . 4, C e n t r a l N e w England Sanatorium, R u t l a n d , Mass. 102,000 740;000 A u g . 17 J u n e 27 R . C. O r p h a n a g e , N e w •^ Y o r k City. ^,i_ R e m o d e l i n g 2,750,000 S e p t . 30 600,000 N o v . 16 Negro hospital, Tuskegee, Ala. P a l o A l t o , Calif }2,250,000 ..do..... 1,500,000 ...do..... W e s t e r n Pennsj'-lvania. Jefferson B a r r a c k s , St. Louis. MetropoUtan district, New York City. TotalBalance 2 — Grand total..' .... 3 257 I N . P do do.. 245 220 T B . . . . N.P. 230 270 500 T.B-. N.P. N.P. 1,000,000 . . . d o . . 1,000,000 . . . d o . . 250 250 T.B General. 1,000,000 . . . d o . . . 250 T.B.. 17,809,000 791,000 I .....I J u n e 2 8 , 1 9 2 1 -do..-, -do.... P l a n s for remodeUng p r a c t i c a l l y complet*^d; a c q u i s i t i o n of tiule still t o b e c o n s u m [ mated. Standard plans app r o v e d . AV 0 r k i n g drawings under way. Standard plans approved. do PreUminary plans under way. Standard plans approved. { H o s p i t a l t o be o p e n e d i n December; remaining c o n t r a c t w o r k to b e completed in April. A u g . 30,1921 Site v e s t e d i n t h e Gove r n m e n t Oct. 27, 1921; work under way. F e b r u a r y , 1922. J u n e , 1922 Drawings sufficiently advanced to permit w o r k t o begin. J u n e , 1922, if title t o p r o p e r t y is acquired promptly. AVork t o b e s t a r t e d on c o m p l e t i o n of w o r k i n g drawings. do October, 1922 R e m o d e l i n g of p r e s e n t b u i l d i n g s n e a r l y completed; c o n t r a c t for kitchen and mess haL awarded. O p e r a t i o n of building delaj'^ed u n t i l acquisit i o n of p r o p e r t y was acquired.^ T i t l e n o t yet passed t o the Government,acquisition of title will perm i t o p e r a t i o n s a t • site t o begin a t once.i , O -do-. fe- -do., .do.. -do-, -do.. > .do.. -do.. O fe H 3 5,974 18,600,000 1 L a w forbids b u i l d i n g on l a n d n o t o w n e d b y G o v e r n m e n t . a R e s e r v e fund t o b e used in p r o v i d i n g for emergencies w h e r e a l l o t m e n t does n o t c o m p l e t e t h e project or c h a n g e s h a v e t o b e m a d e , or for p r o v i d i n g for c h a n g e in u t i h t i e s of i n s t i t u t i o n s occasioned b y t h e a d d i t i o n of n e w b e d s . 3 T . B . b e d s , 2,837: N . P . b e d s , 2,887; General beds. 250. W Kl W fe fe > in d Kl o CTT 106 REPORT ON THE FINANCES. I t appears, therefore, that most of these hospitals are. now under construction. The one at Fort Logan H. Eoots is practically complete and ready for reception of patients and the others are in various stages,of completion. I t was an early conclusion of the consultants, approved by the Secretary, that in the face of the emergency need for hospitals no delay should be tolerated, and that therefore each project as it Avas decided upon should go ahead with the utmost possible speed. This conclusion rendered impossible a formal report of the Avork done until the completion of the task, but from time to time reports of the progress of this work have been furnished in tabular form. During their work the consultants have many times been asked to appear before different bodies interested in the relief of those who were disabled in the World War, and their methods and work have received much favorable comment. For example, in Senate Eeport No. 233, part 2, Sixty-scA^enth Congress, first session, there appears the following : Eminent authorities on hospitalization throughout the Uniteci States haA^e also expressed their approval of the methods used and the conclusions reached by this board, and this committtee desires here to record its own opinion that no such constructiA^e effort to proA-ide for the needs of disabled ex-service men has been made before, and to recommend that this board be continued under whatever new auspices the problem of hospitalization may. come. Then, again, the committee on hospitalization and vocational training of the American Legion passed the following resolution in July, 1921: This committee, after duly hearing a report from the consultants of the Secretary of the Treasury, desires to record its appreciation of the progress made and the work accomplished by the Secretary of the Treasury in allocating the money recently appropriated by Congress for the expansion of existing Federal hospitals and the construction of new hospitals for ex-service men. This committee highly approA^es the action of the Secretary in appointing consultants, chosen from specialists of the country, to advise on the location and type of hospitals to be erected under the congressional appropriation, and would urge upon the Secretary of the Treasury that he request such consultants to recommend to him such additional provisions as, in their judgment, after further careful study, may seem necessary to complete the hospital program for ex-service men. For the Federal GoA^ernment to launch upon a new hospital program is a matter of far-reaching importance and it involves more than one department of administration. This fact was early apparent, and the future use of such new equipment as seemed wise to provide became a necessary consideration in policy. This iiiA^olved further the question of the use of -contract hospitals. I t seemed impossible in any extensive hospital task, such as has been presented at this time, to exclude entirely the better contract hospital. I t has a necessary part in the proper care of our ex-service group, both to SECRETARY OF THE TREASURY. 107 provide expert skill in exceptional cases through the consultant staffs, which can only be found attached to our best civil hospitals, and also to care for patients who, through their own desire or through the desire of their relatives, Avish to remain nearer their homes t h a n the hospitals provided by the Government permit. Inasmuch as the law did not permit the expenditure of these moneys on Army and NaA'-y hospitals, there remained but two other hospital agencies of the Government—the Public Health Service and the National Homfe for Disabled Volunteer Soldiers, both of which, from the point of view of future development, appeared to be departments in Avhich future use of such hospitals as were provided would secure a permanent investment of value on the part of the Government. With the end in view of securing this solution, one of the earliest necessities was a change in public act 384, which was provided for in the second deficiency bill of the Sixty-seventh Congress. The last paragraph of the original act read as follows: ' For carrying into effect the preceding paragraphs relating to additional lios(pital facilities there is hereby appropriated out of any money in' the Treasury not otherwise appropriated the sum of $18,600,000, to be immediately available and to remain available until expended, of which sum not to exceed $6,100,000 shall be used for remodeling or extending existing plants. This was amended in the second deficiency bill as f OIIOAVS : The * ^'^ * provision contained in the last paragraph of the act ** * * approved March 4, 1921, * * * is hereby repealed. The total amount appropriated by the said act shall be available for the purposes specified in the said act and allotments may be made from said amount at the dscretion of the Secretary of the Treasury to the board of managers of the National Home for Disabled Volunteer Soldiers to be transferred to its credit and disbursed by it under the approval and direction of the Secretary of the Treasury for the purposes of the said act: Provided, That the surplus property not required by the War Department mentioned in said act and any suitable surplus property of the Navy Depai:tment not required for its use shall be transferred for use in constructing, equipping, and supplying any of sucli hospitals. I n the location of the hospitals the ultimate use of the institutions has been kept constantl}^ in mind, with particular reference to the following two phases of the situation: First, that with o.ur increased shipping facilities it was important that the hospitals should be located, if possible, so as to be available later as supplements to the marine hospital service, subject, of course, to the consideration that the hospitals must fiTSt fulfill in the best way the present emergency function of the care of the ex-service men; second, after a survey of the history of.the National Home for Disabled Volunteer Soldiers after the Civil War and the number of men likely to demand domiciliary care after this war, that Aveight should be given in the allocation of the fund to the need for homes for disabled soldiers, provided 108 REPORT ON THE FINANCES. the hospitals could fulfill their main function of adequate care of ex-service men and ultimately meet the demand for homes for the disabled veterans in districts not already provided in this way. This latter phase has been especially in mind in district No. 2, comprising New York and New Jersey, and district No. 3, comprising Pennsylvania and Delaware, the two most populous districts in the United States, and yet with no provision for the domiciliary care of disabled veterans. In New York City, on the other hand, and in California it was possible to provide institutions which would fill an ultimate purpose in connection with our shipping interests, while at this time being used solely for ex-service men. A further interesting development of the studies has been the opportunity of the administration to make some suitable provision for the Negro soldiers in the South. This is being done by a separate institution for 230 beds for tuberculous and 270 beds for mental and nervous cases at the great center of Negro welfare work at Tuskegee, Ala. The cooperation of the board of managers of the Tuskegee Institute and the donation of the site by them to facilitate the work of building haA^e been of A^ery gratifying significance in the attempt to do justice to all in the provision of these hospitals. Provision has been made in the plans of this and other institutions for enlargement to 1,000 beds in the-permanent hospital program of the Government. The problem of the type of hospital to be built presented serious difficulties. The two main groups to be provided for—^those suffering from tuberculosis and those suffering from nervous and mental diseases—^^determined the types of hospitals to be built. Standard plans of nine types were prepared, (1) sanatoria for the tuberculous, with three types of buildings, infirmaries for advanced cases and buildings for ambulant and semiambulant groups; and (2) hospitals for mental diseases, with six types, diagnostic units, buildings for continued treatment, disturbed cases, reeducation, tuberculous mental and convalescent cases. Forty per cent working draAvings for each of these with preliminary specifications were prepared to serve as models. I n this way a great saving of time was secured, and when institutions were decided upon and sites chosen these standard plans were used with such modifications as were necessary for contour of ground, preexisting utilities where these already existed, etc., and thus speed in advertising and securing contracts of building and final erection was obtained. I n the study which has been made of the whole problem of hospitals a great deal of information has naturally been gathered. This is now being prepared as a guide in shaping any future hospital program of the Government. SECRETARY OF THE TREASURY. 109 I t seems quite clear that many factors are concerned in any permanent investment of the Government in a vast hospital program. There are now fiA^e main hospital divisions df the Government service—the Army, the Navy, the Public Health Service, the Department of the Interior (St. Elizabeths), and the National Home for Disabled Volunteer Soldiers. All of these have generously done their part in the acute necessity of care for those who were disabled in the service of their country in the late war, and by the continued cooperation of these agencies we shall undoubtedly pass the present crisis and fulfill our duty and priAdlege in caring for those Avho sacrificed themselves in their country's service. While the GoA^ernment owes to disabled veterans adequate hospital care of the very best character, and this should be provided Avith the least possible delay, yet the greatest care should be exercised that none of the moneys appropriated should be wasted on institutions that haA^e not a permanent A^alue to the Government service; and, further, in appropriating additional funds a conservation of our resources should be kept constantly in mind and a careful plan such as has been framed by the consultants should guide the future program. Location pf ncAv institutions or enlargement of existing plants should all follow a Federal plan in which maximum assistance to the greatest number of ex-service men, permanent usefulness of institutions, floAv of population, means of transportation, highest type of medical and nursing service, and similar important factors should be •given their consideration. P U B L I C H E A L T H SERVICE. As organized, the Public Health Service constitutes by far the largest Federal agency for the protection of the public health. Its most important Federal functions are (1) the prevention of the introduction of diseases into the United States, or from one State to another State; (2) the investigation of diseases of man and stream pollution; (3) supervision and control of biologic products; (4) public-health education; and (5) the operation of hospital service for its beneficiaries, including disabled ex-service men and women. National and interstate quarantine.—During the present year the Public Health Service took over the quarantine station for the city of New York. The service now operates all of the maritime quarantine stations in the United States. Owing to the present health conditions in foreign countries as to cholera and plague, there are now 35 ofiicers stationed in Europe to enforce certain quarantine restrictions in regard to ships and passengers bound for ports of the United States. 110 ' REPORT ON T H E FINANCES. The Federal quarantine facilities will require some improvement and extension in order to increase the protection now afforded the United States. Some of the stations require changes and repairs, and some new stations should be established in order to make more effective the ap]Dlication of United States laAvs relating to quarauT tine and immigration. ,. For the control of such diseases as cholera, yellow fever, plague, typhus fcA^er, and the like, the Congress has appropriated the "epidemic fund," which is used by the Public Health Service for the prcA^ention of the introduction of these diseases into the' United States, or from one State to another State. I n the last annual report of that service it was noted that plague was present in Pensacola, Fla.; Beaumont, Galveston, and Port Arthur, Tex.; NCAV Orleans, La.; and San Francisco, Calif. Measures for its control have continued Avith such success that the operations of the service in this connection have been reduced to the minimum which is,required to prcA^ent further menace from its spread in the United, States. For the prevention of the interstate spread of other diseases, the Congress has appropriated $25,000, Avhich is being expended for the most part in cooperation with ^tate and local health agencies in the matter of the enforcement of regulations governing Avater supplies furnished to the public by interstate carriers. By this method it has been possible to control and make safe for travelers about 45 per cent of the Avater supplies used in interstate traffic. For the prevention of venereal diseases, the Congress has made a special appropriation. These funds are used -by the Public Health SerAdce in cooperation A\dth State boards of health. This cooperative Avork has been so effectual and has brought all health authorities to such a realization of the .necessity for work of this character that it is recommended that it be continued and that funds for allotment to State boards of health for this purpose be continued to be provided by the Congress. I t affords me great satisfaction to be able to report that there has been no epidemic of serious proportions in the United States during the present year. I t may be expected, however, owing to the present industrial depression, that those diseases which haA^e a distinct relation to economic conditions Avill show an increase in prevalence during the coming year unless general conditions show an early and material improvement. Scientific research.—In the matter of investigations of diseases of man and the pollution of streams, the Public Health Service has continued, through its Division of Scientific Eesearch, such iuA'-estigations and demonstrations as could be carried on within the limits of its appropriations. Of special importance haA^e been its demonstrations in rural sanitation. With a sum of about $30,000 appropriated SECRETARY OF THE TREASURY. Ill for cooperation with States, it has carried on in cooperation with State and local health boards, health demonstrations in which the State and local authorities have contributed over $8 to $1 of Federal funds. Investigations of child hygiene, industrial sanitation, pollution of streams, influenza, pneumonia, pellagra, trachoma, tuberculosis, and biologic products for the prevention and cure of diseases of man have been vigorously prosecuted. \ . The funds appropriated for these purposes have not been sufficient to meet the full needs for investigations in this field, and it is recommended that further provision be made in order that the Public Health Service may institute intensive investigations of diseases like pneumonia, which causes one-tenth of all the deaths; tuberculosis, which causes approximately 150,000 deaths annually; infant mortality (over 200,000 infants born in the United States die each y e a r ) ; and cancer, which causes over 80,000 deaths each year. The groAvth of our knowledge of the influence of diet on health and disease renders intensive investigations of this broad field especially important at this time. S^^stematic studies of mental hygiene should be likcAvise established with special reference to insanity and mental defects among native and foreign stocks and their influence on the future of the race. I t would also be desirable to provide through the Public Healtn Service for better reporting of the preventable diseases as they occur in the United States. I n order that the results of the studies and investigations made by the Public Health Service may be disseminated for the information of the public, consideration should be given to the publication of its reports in numbers sufficient for this purpose. National health prograin.—In order to meet urgent national health needs by outlining health activities Avhich are practicable, the Public Health Service prepared some years ago a national health program. This program is based on the principle that the Federal public health functions are essentially research and education, and should have further attention by the Federal, State, and local authorities. Hospital service.—As stated in the last annuah report, the signing of the armistice, with the resulting rapid demobilization of the military forces, threw an extraordinary burden upon the hospital facilities of the United States to provide medical care and treatment for disabled ex-service men and women. The Public Health Service was utilized for this purpose, and its hospital facilities were expanded rapidly in order to meet the emergency. I t has now in operation hospitals Avith a capacity of 21,334 (as of NoA^ember 19, 1921) beds and will shortly open other hospitals with an additional capacity of about 2,500 beds. 112 REPORT ON THE FINANCES. I n the inception of this work the Public Health Service divided the United'States into 14 districts and established offices for the examination and assignment to hospitals of beneficiaries of the W a r Eisk Insurance Bureau. These functions were performed by the service as an agency of the War Eisk Insurance Bureau. I n order, however, to centralize under one administrative head the services furnished fo disabled ex-service men and women, the Secretary of the Treasury by the order of April 19, 1921, transferred all of the activities of the Public Health Service which related to the beneficiaries of the War Eisk Insurance Bureau to that bureau, except those activities which had to do with the operation of hospitals and dispensaries. This order was followed by the act creating the Vet' erans' Bureau, which was approved August 9,1921, and the result has been to relieve the Public Health Service of many duties which properly belong to the Veterans' Bureau and which had been performed by the Public Health Service for the W a r Eisk Insurance Bureau. Personnel.—Since the beginning of this work to July 1, 1921, the service has made OA^er 1,000,000 medidal examinations, furnished hospital care to about 200,000 patients, dispensary treatment to about 1,300,000 patients, dental service to'75,000 patients, and daily occupational ahd physio-therapy to 10,000 patients. I n order to furnish this treatment it has assembled a personnel consisting of 1,207 commissioned medical officers, 287 medical and other consultants, 1,562 nurses, 152 dietitians, 490 reconstruction aids, and 13,315 other personnel. T H E COAST GUARD. The Coast Guard has continued to distinguish itself in its broad field of endeavor and presents a record' of performances which Is worthy of the highest commendation and markedly upholds the honorable history of the institution. The value of A^essels (including their cargoes) assisted by the cutters and stations of the service during the year amounted to more than $66,000,000. Never before has the record for this class of work reached this magnitude. I n the fiscal year 1920 the value of such property assisted was somewhat in excess of $65,000,000, at that time a sum far exceeding that previously attained, in any one year, in the history of the service. The number of persons on board vessels assisted was a little more than 14,000, exceeding the past year's number by about 5,500. The number of A^essels boarded and examined by the units of.the service in the interest of the enforcement of United States laws was in excess of 18,000. The instances of service performed were 2,788. The number of lives saved or persons rescued from peril during the year was 1,621. SECRETARY OF THE TREASURY." 113 Ice patrol. The international service of ice observation and ice patrol conducted under the terms, of the International Convention for the Safety of Life at Sea, was carried on during the season by the Coast Guard cutters Seneca and Yamacraw^ based on Halifax, Nova Scotia. T]ieSeneca\eit\\erst2iiion at New York the middle of February, 1921, upon the duty of ice observation. About the 1st of April she entered upon the ice patrol and was later joined by the Yamacraw. These cutters maintained a continuous patrol in the vicinity of the Grand Banks, off NcAvfoundland, along the trans-Atlantic steamship lanes where icebergs appear and form a serious menace to.navigation. The cutters report the presence of bergs and field ice to the Hydrographic Office of the Navy and broadcast warnings by radio for the information and protection of shipping. The service was discontinued for the season on June 30. Winter cruising. Annually certain Coast Guard cutters designated by the President cruise off the dangerous coasts during the stormy season, from December 1 to March 31, to render aid to distressed navigators. The President on November 11, 1920, designated the following-named cutters to perform this service during the past winter: Ossipee, Androscoggin., Gresham., Acushnet., Seneca., Manning., Seminole., and Yamacraw. Notwithstanding the fact that the winter was an unusually mild one, the record made by the cutters was highly commendable. I t is estimated that the value of vessels (including their cargoes) assisted by the cutters during the winter cruising was $15,000,000. The number of persons on vessels thus assisted reached nearly 1,000. I t is a fact worthy of comment that the cutters engaged annually in the winter cruising are obliged to put out to the assistance of vessels in distress when weather and sea are at their worst, and frequently must work against the very conditions that have rendered helpless the vessels to whose aid they go. Cruises in northern waters. ' The Coast Guard cutters Bear., Unalga^ Algonquin., and Bothwell., which participated in last season's patrol of the waters of the north . Pacific Ocean, ^Bering Sea, and southeastern Alaska, having completed their duties, returned to the west coast in the fall and early winter of 1920. They Avere actively engaged during the season with the prime duties of the patrol, and with such other matters involving the interests of the Government and the welfare of the white and native population as it is the custom of the Coast Guard to attend to in those waters. 70073—FI 1921 8 114 REPORT ON THE FINANCES. The interdepartmental arrangement of last season for the patrol of these waters has not been continued for the present season. Coast Guard cutters will perform the Avork as formerly. The Bear., Unalga^ Algonquin^ Snohomish., 2Lnd Bothwell haA^e been assigned to the duties this season. Anchorage and moverrients of vessels. The personnel and equipment of the Coast Guard have been utilized during the year, as formerly, in the enforcement of the rules and regulations governing the anchorage and movements of vessels in the navigable waters of the United States. Upon the passage of House joint resolution 382, approved March 3, 1921, the authority of the Secretary of the Treasury to make rules and regulations, under section 1, Title I I , of the act of June 15, 1917, Avas terminated. Jurisdiction then passed to the War Department by the revival of certain provisions of the acts of March 4, 1915, and August 8, 1917, the Secretary of War reaffirming all existing rules and regulations by order of March 5, 1921. The enforcement of the rules and regulations remains with the Coast Guard. Coast Guard officers serveas captains of the port at New York Harbor and vicinity; Delaware Eiver, between the northern limits of Philadelphia Harbor and the southerly limits of New Castle, Del.; Hampton Eoads and the harbors of Norfolk and Newport NCAVS; St. Marys Eiver, from Point Iroquois, on Lake Superior, to Point Detour, on Lake Huron, except those waters including St. Marys Falls Canals. The local Coast Guard inspector at Chicago, 111., and the officer in charge of Station No. 247, Harbor Beach, Mich., are charged with the enforcement of the anchorage regulations at those ports. Periodical inspections of anchorage grounds in other localities are made by the cutters of the service in their regular cruising. Derelicts. I n the course of the year 19 derelicts and other floating dangers to navigation were removed from the paths of marine commerce by the vessels and stations of the service. Coastal communication. There.are now in the coastal communication system of the Coast Guard approximately 2,240 miles of telephone lines, comprised of 1,800 miles of overhead line and 440 miles of cable. Eepairs, improA^ements, and extensions have been made during the year as necessary and desirable. Aviation. The Coast Guard aviation station at Morehead City, N. C , has performed considerable work during the year.. The station, however. SECRETARY.OF THE TREASURY. '115 on account of lack of funds is not sufficiently manned or equipped to render the maximum of service. The station has demonstrated the vValue of aviation for the purposes of the Coast Guard. Coast Guard repair depot. I n the course of the year repairs, improA^ements, and additions, more or less extensive, were made to 14 vessels of the Coast Guard at the Coast Guard repair depot at Arundel Cove, South Baltimore, Md.; 6 motor lifeboats were built, tested, and distributed to Coast Guard stations; 12 motor self-bailing surfboats and 4 outfits of 8 boats each for cutters 36-39 were built; 20 hulls of motor self-bailing surfboats were constructed for the Navy Department, and motors were installed in 8 of them. Vessels and stations. One of the five new vessels mentioned in last year's report has at this time been completed and delivered to the Government; the four remaining vessels are nearing completion, and it is thought will be ready for delivery within a fcAv months.^ I n this connection attention is invited to the remarks in last year's report concerning the need of additional vessels fbr the Coast Guard to meet the requirements of the serAdce in rendering aid to marine commerce. To some extent this need has been met by the transfer of vessels from the. Navy Department and the Shipping Board, but it still remains important that further proAdsion be made for vessels of the type required by the Coast Guard. Customs laws. All the units of the Coast Guard conducted their duties in the enforcement of the customs laws. I n addition to this general enforcement of the laws, harbor tugs or launches were detailed to nine ports of the country to aid the customs authorities in boarding vessels and in performing other customs duties. Other activities. Among other activities of the service eight regattas and marine parades were patrolled and supervised by Coast Guard vessels during the year. The patrol and supervision of annual regattas of such nationwide interest as the Harvard-Yale regatta at New London, Conn., and the intercollegiate regatta at Poughkeepsie, N. Y., involving the safety of thousands of persons on the water, are duties of the first importance, and the uniformly successful performance of these duties reflects great credit on the Coast Guard. 116 REPORT ON T H E FINANCES. The service continued its duty, through the agency of its vessels and stations, of boarding vessels in the inter.est of- the enforcement of the navigation, motor boat, and customs laws. The service continued to assist the Steamboat-Inspection Service, Department of Commerce, in the examination of persons as. to their qualifications for certificated lifeboat men. , Medical aid to deep-sea fishermen was rendered by the cutters of the service in their regular and special cruising. I t was impracticable during the year to detail a vessel especially for this purpose. Commissioned personnel. I n the last annual report the Secretary of the Treasury called attention, as a matter of serious concern, to the limited opportunity for adA'-ancement in the commissioned personnel grades of the Coast Guard due to the comparatively small number of officers in the service, the absence of the higher grades which officers of long experience should attain, and the fact that promotions can be made only upon the occurrence of vacancies on the active list. This condition still prevails, and there ,is an urgent need for remedying the unsatisfactory situation brought about by the extremely slow and limited promotion for commissioned officers now existing in the service. Officers Avell advanced in life and of many years' service are holding ranks entirely inappropriate to their age and experience and greatly below those attained by officers of the same age, experience, and ability in the other military services. The last annual register of the Coast Guard (Jan. 1, 1921) shows the line officer at the head of the list of permanent lieutenant commanders to be 58 years of age, with 35 years of service, and the junior officer in that grade to be 46 years of age, with 23 years of service. I t shoAvs the engineer officer at the head of the list of permanent lieutenant commanders (engineering) to be 58 years of age, with 35 years of service, and the junior officer in that grade to be 54 years of age, with 26 years of service. The grade of lieutenant commander in the Coast Guard corresponds to that of lieutenant commander in the Navy and major in the Army. A bill is now pending in Congress which, without increasing the number of commissioned officers now authorized by law, is intended, by certain readjustments of officers in the various grades, to bring about a just and reasonable flow of promotion. This bill has the Treasury's unqualified approval, and it is hoped that it will soon be enacted into laAv and thus remedy the present unsatisfactory condition affecting the efficiency and best interests of the service. CUSTOMS. The collections from duties and tonnage during the fiscal year 1921 amounted to $308,025,102, or $15,511,457 less than the official customs SECRETARY OF THE TREASURY. ^ ^ 117 receipts for the preceding fiscal year. The aggregate receipts collected by the serAdce from all sources for the fiscal year 1921, according to the annual reports of transactions received from collectors of customs, amounted to $316,471,969, or $12,161,423 less than those of -the fiscal year 1920. The receipts thus reported include collections made for the Departments of Commerce and Labor, the Public Health Service, estimated duties, duties and fines on mail importations, increased and additional duties, fines, penalties, forfeitures, and sundry , miscellaneous receipts. The expense of conducting the customs service during the fiscal 3^ear 1921 (exclusive of the so-called increase of compensatioh) was $11,227,905, or $1,129,097 in excess of the amount expended during the fiscal year 1920. This increase in expense is accounted for by an increase in the 1921 customs appropriation of $1,300,000, authorized by the Congress for the main purpose of increasing salaries in the customs service and meeting the upward trend in the cost of rents and contingent expenditures. The value of imports for the fiscal year 1921 (inclusive of Porto Eico) was $3,654,449,430, a decrease of $1,584,172,238 from the 1920 imports, while the value of exports fell from $8,111,039,733 in 1920 to $6,516,315,346 during the same period. ^ While the decline of over three billions of dollars in the value of our foreign trade during the fiscal year 1921 was reflected in the decrease noted above in the customs collections for the same period, there was nevertheless a general increase in customs activities due, in a measure, to the increased number of vessels entering from and clearing for foreign ports, and increased tonnage and head tax collectiohs. During the fiscal year 1921, the combined foreign entrances and clearances increased from 89,114 to 97,519, while the tonnage.tax and head tax collections increased from $1,696,012 to $2,175,902 and from $2,456,565 to $5,126,842, respectively. The enforcement of the Federal prohibition law likewise increased the regular customs activities. Seizures of contrabrand liquor by customs officers continued during the fiscal year 1921 in increasing quantities. The average number of eniployees in the customs service during the past fiscal year was 6,671, which represented an increase of 93 as compared with the number employed during the preceding fiscal year. As stated in the Annual Eeport of the Secretary of the Treasury for the year 1920, during the period of the war the customs service consistently followed the policy of reducing the personnel wherever practicable, and there was therefore some embarrassment because of the lack of a sufficient force to take care of the increased A^^olume of customs business that followed the close of the Avar. New duties have been imposed by Titles I and I I of the act of May 27, 118 REPORT ON THE FINANCES. 1921, known as the emergency tariff act and the antidumping act, respectively, and this increases the burdens of the force. The emergency tariff act carried many articles from the free list of the tariff act of 1913 to the dutiable list. This requires, as to merchandise subject to specific rates, the weighing or measuring of. the goods, and, as to merchandise subject to ad valorem rates of duty, the determination of the foreign market value. As only a perfunctory examination of this merchandise, such as wheat, cattle, and Avool, was necessary under the previous tariff act, the increased work Avhich devoh^es upon the customs service by reason of the change is substantial. The act of May 27, 1921, moreover, provides that appraisers of merchandise must in all cases ascertain the foreign market A'alue of imported merchandise, whether free or dutiable, and the price at which such merchandise is sold for export, to the end that the appraiser may know whether the provisions of the antidumping act apply. As to merchandise subject to ad valorem rates, 'the appraiser must find the foreign market value as well as the value of the merchandise sold for export, in order to determine whether the export selling price exceeds the value for home consumption in the country of exportation; for if the export price, is higher, then that price constitutes the basis for the assessment of the ad valorem rate. Since the passage of this act all appraising officers and special agents of the department have been required to be constantly on the alert to detect cases which appear to fall within the provisions of the law. Pursuant to the proAdsions of Title V, section 501 of the act of May 27, 1921, known as the Dye and chemical control act, 1921, the War Trade Board section of the Department of State ceased to exist and the duties theretofore performed by the section were placed under the jurisdiction of the Secretary of the Treasury. For the purpose of administering the act in relation to the control of importations of dyes and chemicals, a section known as the Dye and Chemical Section of the Division of Customs was organized and appropriate regulations were prescribed for the purpose of administering the control as provided for in the said ,act under the immediate supervision of the Chief of the Division of Customs. In connection with the enactment of permanent tariff legislation, the Treasury has undertaken, at the request of the Committee on * Finance, to make a special iuA^estigation of the American valuations of merchandise. This Avork was begun several months ago, pursuant to special appropriation made therefor by Congress, and it is expected that the report will be completed in time for submission to the committees shortly after the beginning of the regular session. SECRETARY OF T H E TREASURY. 119 B U R E A U OF ENGRAVING A N D P R I N T I N G . The bureau finished its work on the Liberty loans in April, 1921, with the final delivery of the Fourth Liberty loan permanent bonds, which made a total of all issues of 191,344,560 boiids and notes, both temporary and permanent. Since that time the bureau has been required to furnish small quantities of bonds and notes for exchange purposes. There were deliA'ered in the fiscal year 1921 a total of 438,694,824 sheets of engraved- securities and other Government paper of all kinds,, an increase of 35,983,065 sheets. The face value of the delivered sheets aggregated $22,641,563,678.71. The personnel of the bureau has been reduced from a maximum of 7,427 on January 24, 1921, to 6,181 on October 31, 1921, excluding those on indefinite furlough. The third or midnight shift was ^discontinued with the completion of the Liberty loan bonds: On account of the increase in other classes of work since 1914, it Aviil probably be necessary to continue indefinitely the two other shifts. PUBLIC BUILDINGS. During the Avar it became necessary to suspend the letting of contracts for the construction of public buildings. From time to time since the cessation of hostilities the department has succeeded, in cases where conditions Avere unusually favorable, in getting an occasional public building under contract. I t has become apparent, hoAvever, that the.abnormally high construction costs which prevailed during the war could not be expected to decline in the near future to prewar levels, and that until a very material reduction in these costs, should take place the resumption of public-building Avork must be further postponed unless Congress should enact legislation to increase the limits of cost of t h e buildings hitherto authorized to be constructed. I n the meantime the activities of the Supervising Architect's Office, aside from the maintenance and upkeep of completed and occupied public buildings, noAV numbering approximately 1,250, have been principally devoted to the construction of hospitals and the extension of existing plants to provide additional facilities for the treatment of patients of the Bureau of W a r Eisk Insurance, and the Board for Vocational Education, Division of Eehabilitation, now the Veterans' Bureau. I n addition, the Supervising Architect's Office has been engaged throughout the fiscal year 1921 in making available additional space to relieve congestion in public buildings, so far as the limited appropriation provided for the p'urpose has permitted. Eelief has been afforded in this way in 45 buildings at an avera/^e cost for necessary changes, etc., of $5 per square foot. 120 REPORT ON T H E FINANCES. The work of supplying furniture, heat, light, power, water, and miscellaneous supplies for the custodians' forces in the care and operation of public buildings and their mechanical equipment has been handled ih a satisfactory way, and it is gratifying to knoAv that the custodians of public buildings under the control of this department, who serve as such without compensation, are cooperating in a most commendable way with the Supervising Architect's Office in reducing maintenance costs to the minimum consistent with proper service. I n the abstracts Avhich accompany this report will be found a statement showing in general the public building work authorized by' Congress and the financial operations of the Supervising Architect's Office for the fiscal year ended June 30, 1921; and, in addition, a statement of the classification of buildings by titles showing expenditures in each class, prepared pursuant to the act approved June 6, 1900. (31 Stat., 592.) THE INTER-AMERICAN HIGH COMMISSION. During the past fiscal year the United States section of the InterAmerican High Commission has endeavored to strengthen the cooperative relationship with the national section of the other Eepublics of the American continent Avith a view to accomplishing the major purpose, for Avhich the commission was established, namely, the removal of those obstacles to closer trade and financial relations that haA^e their root either in inadequate or defectiA^e domestic legislation or in the absence of uniformity in the standards of such legislation. ^ ' The establishment of means of protecting industrial property and good will is viewed by the commission as one of the foremost objects of its own existence, and it has, consequently, devoted during tho past year considerable time and energy to efforts to bring about the ratification by additional countries of the Trade Mark Convention of 1910 in order to make possible the. opening of the second international registration bureau at Eio de Janeiro. Close cooperation with the Eegistration Bureau at Plavana has continued throughout the year. As heretofore the uniformity of commercial law in the broadest sense has been regarded as an object of paramount importance in the process of remoAdng difficulties in the Avay of trade development. As a step in the direction of uniformity of legislation governing corporations the Secretary General has prepared a report on the laws of the American Eepublics concerning the formation and operation of domestic corporations, and the operation of foreign corporations within their respective jurisdictions. With this report as a basis the National Sections will be able to formulate a definite policy look- SECRETARY OF THE TREASURY. 121 ing to greater uniformity in corporation legislation. Eealizing also that mutual confidence is the basis of all credit operations, the commission has been a^ctive in placing before each of the National Sections the best models of legislation with accompanying commentaries on warehouse receipts, bills of lading, bills of exchange and checks, acceptances, and conditional sales. The legislation in the United States governing these topics has been translated into Spanish and Portuguese and distributed with appropriate commentary. Monographs are in preparation which will furnish the respective sections of the commission with comparative studies of the juridical consequences of the laws now in effect in their respective countries as contrasted with those of the model laAvs propose^ for their consideration. Apart from the studies, translations, and distribution of information, to Avhich reference has just been made, the Secretary Greneral reports satisfactory progress.in respect of legislative action in this field. Two additional countries have taken steps during this year to modify their commercial codes by the incorporation of The Hague rules on bills of exchange. The commission is engaged not only in harmonizing the principles of commercial law, but it is furnishing a means for the.more accurate comparison of statistics of importation and exportation. The Brussels classification of merchandise for statistical purposes was found to lend itself best to the commercial conditions of Latin America, and its use has been recommended by the various sections of the coinmission. Two countries now use the Brussels classification recommended by the commission in 1916 for alh purposes, and six others have adopted it for statistical purposes. Under the heading of simplification of "fiscal regulations, the commission has striven assiduously to ameliorate the conditions under which commercial travelers carry on their operations in the different republics. The Argentine Eepublic signed the Commercial Traveler Convention late in 1920, being the ninth American country to enter into this agreement with the United States. Eegulations giving effect to the convention are in course of preparation in the respective countries. I n connection with those topics on the commission's program which have to do with the foreign exchanges and the strengthening of the banking facilities of the American Eepublics, considerable documentary material has been gathered by the secretary general and furnished at approximately monthly intervals to the 240 members of the Group Committees, which were established to work side by side with the commission in the promotion of commercial ahd financial gelations betAveen the United States and the rest of America. I n addition to the distribution of this material, the secretary general has compiled a series of detailed monographs on the financial condi- 122 REPORT ON THE FINANCES. tion of the other American Eepublics. Data used in the compilation of these reports is from authoritative sources, having been made aA^ailable through the national sections of the commission. GENERAL SUPPLY COMMITTEE. The General Supply .Committee, created by the act of June 17, 1910, as a contracting agency for the supplies in common use in two or more executive departments and other Gov.ernment establishments in Washington, D. C , has to a very considerable extent standardized the vast number of articles required by the various services through the centralization of contracting and the elimination of unnecessary grades and varieties. The matter of specifications has received special attention and the committee is cooperating with manufacturers with a vicAv to having the Government's specifications, as far as possible, conform to trade customs and practice and confine purchases to articles of standard manufacture. Large economies in time and money have been effected, and greater economy to the Government will be attained with the progressive development of purchase and distribution. The General Supply Committee, in an effort to effect economy in purchases, has ascertained the requirements of the A'arious departments and independent establishments of the GoA^ernment on certain commodities, pooled the requirements, and advertised for definite quantities for deliA^ery to the committee in Washington, D. C , which made local distribution. The shipment in bulk to one point of delivery enabled the manufacturers to offer lower prices than would liaA^e been obtained under the system of requesting quotations on indefinite quantities for delivery over a stated period and proA^ed con-^ clusively that a system of centralized purchase results in the reduction of expenditures for Government material, supplies, and equipment, through buying at the most. opportune seasons direct from the manufacturer or producer and in quantities that Avould insure the obtaining of minimum prices. Better competition would be obtained by the.consolidation of requirements'and the adA^ertisement for delivery of supplies in definite quantities at a given time and single point of deliA^ery, as many manufacturers are reluctant to-bid for indefinite quantities on long-term contracts. The e°xperience of the General Supply Committee over a period of 10 years has demonstrated that a single agency authorized to contract, purchase, store, and distribute all common supplies required by the various branches of the Government service in the District of Columbia can effect substantial economy in providing for the procurement of Government supplies on a business basis. During the fiscal year 1921 the committee was confronted with a falling market, and on many classes of supplies it found it neces- SECRETARY OF THE TREASURY. 123 sary to enter into many two,'three, and six month contracts in order that the Government might get the benefit of reduced prices, the negotiation of which greatly increased the work of the committee. The reported purchases under General Supply Committee contracts during this period amounted to $7,324,145.40. , The value and A^olume of surplus property transferred and reissued, under the prOAdsions of the Executive order of December 3, 1918, and the act of May 29, 1920, during the fiscal year 1921 exceeded that of any other similar period since this duty was imposed upon the General Supply Committee. The value of supplies received amounted to $1,761,330.81, of which $1,178,891.57 was disposed of by transfer to other Government departments and establishments and sale at public auction, leaving an accumulated balance for the year of $582,439.24. This, added to the balance as of June 30, 1920, of $1,020,130.86, results in a total balance of $1,602,570.10., Since December 10, 1918, property to the value of $4,133,038.95 has been transferred to the General Supply Committee, of Avhich $2,530,468.45 has been issued. The utilization of this material represents a much larger amount of money saved than is shown by these figures, inasmuch as the commercial prices which prevailed exceeded the prices at which the articles were transferred. The need for a warehouse for handling of this work can not be too strongly emphasized, as the present equipment is inadequate, unsuitable, and dangerous from the standpoint of fire and theft. The maintenance of card records of surplus property existing in other Government departments and the viseing of lists of requirements of all GoA^ernment departments and establishments daily as required by the ExecutiA^e order of August 27, 1919, insures the utilization of such surplus wherever possible in lieu of commercial purchases and thus prcA^ents. the expenditure of public funds for this purpose. Through concentration of effort and closer cooperation the departments having large accumulations of property are declaring it surplus,- and rendering more ^ accurate and complete inventories than in the past. The work incidental to the necessary classification and incorporation of inventories into the records, which are the source of information of available surplus property to other Government services, has practically doubled.this year. C H E C K I N G ACCOUNTS OF GOVERNMENT CORPORATIONS AND RAILROAD ADM I N I S T R A T I O N M A I N T A I N E D W I T H . TREASURER OF TFIE U N I T E D STATES. The United States Shipping Board Emergency Fleet Corporation, the United States Housing Corporation, the War Finance Corporation, the United States Grain Corporation, the Eussian Bureau of the War Trade Board, the several Federal land banks, and the Eailroad Administration have maintained checking balances with the' 124 REPORT ON T H E FINANCES. Treasurer of the United States in the manner outlined in previous annual reports of the Secretary of the Treasury. The following table shows the amount of checks drawn by these agencies and paid by the Treasurer from the dates of the establishment of the account to NoA^ember 15, 1921, and t h e balances on deposit with the Treasurer on the latter date: Checks paid b y t h e Treasurer of.the Uriited States. Emergency Fleet Corp oration United States Housing Corporation.. War Finance Corporation United States Grain Corporation Russian Bureau of the War Trade Board. Federal land banks Railroad Adniinistration Date. Balance with the Treasurer of the United States Nov. 15, 1921. From— To- Feb. 28,1918 July 27,1918 June 2,1918 Oct. 31,1918 Nov. 15,1921 do do do $16,433,436.38 2,076,333.67 425,063, 297.73 7,000,000.00 13, 333,773.99 Nov. 30,1918 Sept. 28,1920 17, 237,486.21 June 2,1920 Nov. 15,1921 1, 829, 845, 545.88 Apr. 13,1918 do 484.00 23,269,151.02 $6,611,589,007.88 141,366,555.69 3,038, 858, 751. 74 926,967, 229.41 (1) , 1 Closed Sept. 28,1920. The total payments made by the Treasurer for these Government corporations and the Eailroad Administration to November 15, 1921, were $12,579,198,350.80. • The plans evolved by the Treasury for handling the accounts and disbursements of these agencies have been operated to the entire satisfaction of all concerned. The funds have been assured absolute security, and appropriated moneys running into large amounts have not been withdrawn from the Treasury until actually needed to pay obligations of the Government, thus reducing the amount of Government borroAVings, Avith the consequent saving in interest charges. NEAV CURRENCY DESIGNS. The matter of the revision of the designs for paper-currency issues ' of the United States has been before the department for more than a decade. I t appears that during the Treasury administration of Secretary MacVeagh a committee Avas designated to consider the situation on account of the generally unsatisfactory condition of the currency due to the multiplicity and confusion of designs. An exhaustive study was made and a comprehensive report was presented which received the Secretary's approval in the closing days of his administration. This report contemplated a uniform design for the backs of all notes, irrespectiA^e of kind or denomination; for the faces denominational portraits were suggested, and, in general, a characteristic design was proposed for each denomination, irrespective of the kind of currency, the differentiation of the issues being in the titles, in the legends, and in certain color work. Incorporated with the proposals was the suggestion that the size of the note be reduced by approximately one- SECRETARY OF THE TREASURY. 125 third, or from about 7^ by 3 inches to about 6 by 2J inches. While the report received the approval of the Secretary at the time, its execution was never actually undertaken. In the adoption of designs for Federal reserve notes, however, many of the characteristic features of the designs presented in the committee's report were adopted, and the same features were incorporated in the designs for Federal reserve bank notes when issued. These designs, from an artistic point of view, doubtless were much superior to many of the designs then in use, but in practice it has been found that certain changes in design are advisable in order to add additional protectiA'^e features. A new inquiry was accordingly undertaken and for this purpose a standing department committee on new currency designs was appointed, as indicated in the last IAVO annual reports of the Secretary of the Treasury. During the past year some further progress lias been made and particular consideration has been given to. the question of the advisability of reducing the size of the notes. I n this connection the advice of the Federal reserve banks and others is being taken, and final decision with respect to the proposed reduction will be made before any new designs are actually undertaken. The cooperation of the Fine Arts Commission has been asked and given, and the whole matter of revision of the paper-currency designs will be pushed as rapidly as possible to a satisfactory conclusion. The ideal will be, of course, to secure designs which, while possessing the highest possible artistic qualities, will at the same time in the. greatest possible degree circumvent counterfeiting and note raising. In the event it should be determined to reduce the size of the notes, it is probable that the matter will be presented to the Congress for the appropriation necessary to undertake the work, for the regular appropriations would not be adequate to undertake the new work and at the same time continue the printing of the necessary notes of old design to meet the requirements of the public. TREASURY ORGANIZATION. A number of important changes have taken place during the past year in Treasury organization. On July 1, 1921, the office of the Under Secretary of the Treasury was created, and on the same date there were abolished the offices of the two additional temporary Assistant Secretaries of the Treasury authorized in the urgent deficiency act, approA^ed October 6, 1917, to continue during the period of the Avar emergency. Assignment of the bureaus and offices of the Treasury Department and the divisions of the office of the Secretary of the Treasury for administrative superAdsion by the Under Secretary and the Assistant Secretaries is set forth in Department Circular 244 of August 9, 1921. (Exhibit 77, p. 381.) 126 REPORT ON THE FINANCES. An important addition to the Treasury was brought about by the creation on June 10, 1921, of the Bureau of the Budget as a bureau of the Treasury Department under the provisions of the budget and accounting act, approved June 10, 1921. Eeference to this bureau in more detail appears under the subject ''Econom}^ in Government Expenditures: Budget System " (p. 31). The DiAdsion of Public'Moneys, office of the Secretary, which was organized on July 1, 1877, was abolished on July 1, 1921, its duties being transferred to the Division of Bookkeeping and Warrants of the office of the Secretary. The Treasury was relicA^ed of supervision of the accounting and auditing branch of the Government on July 1,1921, the offices of the Comptroller of the Treasury and the six Auditors of the Treasury being abolished and absorbed on that date into an independent .General Accounting Office under the provisions of the budget and accounting act, approved June 10, 1921. The Treasury also was relicA^ed of administratiA^e responsibility for the important Bureau of War Eisk Insurance on August 9,1921, the functions and duties of the bureau having been transferred to the United States Veterans' Bureau, an independent bureau under the President, established under the provisions of the act of August 9,1921, as amended b.y the act of August 24, 1921. PERSONNEL. When war was declared, April 6, 1917, the number of employees in the Treasury Department at Washington was 8,138. By December 31, 1917, the force had grown to 13,182; to 20,080 on June 30, 1918; to 29,526, December 31, 1918; to 32,246, June 30, 1919; and to 35,267 on October 31, .1919, when the highest point was reached. The number has since gradually decreased until on October 31, 1921, the total was 20,347. A reduction of 2,372 in the Treasury personnel has been accomplished through the establishment of the general accounting office, which took out of the Treasury, effective July 1, 1921, the office of the Comptroller of the Treasury and the offices of the six auditors of the Treasury Department. A further reduction was caused by the separation .from the Treasury Department of the Bureau of War Eisk Insurance, which became a part of the Veterans' Bureau by act of Congress on August 9, 1921. The bureau .at the time of its separation from the Treasury Department had 5,025 employees on its rolls. There was a slight increase in the field force of the Treasury Department during the last fiscal year on account of increased duties imposed, among other things, in connection with the collection of the revenues, the enforcement of prohibition, and the extension of the Public Health Service. The following 127 SECRETARY OF THE TREASURY. table indicates the offices in which the larger increases in the Washington force occurred during and since the Avar, and shows the number of employees at the beginning of the war, the greatest number reached, and the number employed on October 31, 1921: Treasury Department, Washington. Bureau or office. Loans and Currency Register of the Treasury Treasurer of the Unitea States. Engraving and Printing Internal Revenue War Risk Insurance Chief clerk '. Auditor for War Department.. Auditor for Navy Departraent.. Public Health : L< argest number. Number employed. employed at beginnmg Date. of war. Number. 84 21 564 4,502 607 23 335 207 100 45 2,930 1,140 1,341 8,402 7,293 17,336 1,192 1,072 318 771- Feb. Mar. Nov. Oct. Mar. Mar. Sept. Jan. Sept. May 29,1920 31.1920 30.1919 31,1918 31.1921 6,1919 30,1921 31.1920 30.1920 31.1921 Number employed Oct. 31,1921. 1,779 886 1,220 6,419 6,999 15,025 1,185 2 883 2 303 600 1 Number in War Risk Bureau on Aug. 8,1921. 2 Number June 30,1921. Became part of the General Accounting Office, July 1,1921. A table showing the number of employees in the Treasury Department in^ Washington by months, from October, 1920, to October, 1921, and in the field on October 31,1920, and October 31, 1921, is attached to this report as Exhibit 74, page 374. R E T I R E M E N T OF CIVIL-SERVICE E M P L O Y E E S . There were retired during the fiscal year 1921, 339 employees in the departmental service in Washington under the Treasury, and 597 employees in the field service of the Treasury, which makes an aggregate of 936 retired under the provisions of the act approved May 22, 1920. The total salaries of, employees retired from the departmental service, excluding piece-rate workers, amounted to $395,649.51 per annum, while the total salaries of retired field employees amounted to $605,750 per annum, exclusive of the compensation of employees paid on a fee basis. Of the total retirements, 269 employed in Washington and 537 employed in the field service were retired with regular annuities under the act, while 14 employees in Washington and 28 in the field service were retired Avithout annuities. The number of retirements on account of disability was 88 in all, of which 56 were employees in the departmental service in. Washington, and the remainder in the field service. Three hundred and eighteen employees retired from the departmentad service have been granted annuities amounting to $189,659.56 per annum, and seven have applications pending before the Pension Bureau. Five hundred and thirty-two employees in the field service retired were granted annuities amounting to $281,107.10 per annum, and 128 REPORT ON THE FINANCES. 37 have applications pending. Excluding piece-rate workers and employees retired without annuities, the average salary of employees retired from the departmental service was approximately $1,280 per •annum, while the average annuity granted to all departmental employees retired was approximately $600 per annum. Corresponding figures for the field service show an average salary of $1,350 per annum, with average annuity under retirement of approximately $530 per annum. The majority of the retirements were made effective within a period of 90 days after the approval of the retirement act, or shortly ' thereafter, pursuant to recommendations of a special committee appointed by the Secretary and charged with the duty of making an independent investigation in each case arising under the act, The payments made by the Treasury during the fiscal year 1921 from the civil service retirement and disability fund exclusive of investments, on the basis of warrants drawn, were $3,100,000. Under the provisions of section 8 of the act, the Secretary of the Treasury is directed to invest in interest-bearing securities of the United States such portions of the fund as, in his judgment, may not be immediately required for the payment of annuities, refunds, and allowances provided in the act. Pursuant to this provision, there was held in the investment fund at the close of business June 30, 1921, $8,000,000 face amount of Treasury notes of series A-1924, bearing interest at the rate of 5f per cent per annum. Subsequent to the close of the fiscal year these securities were sold, with a small profit on the investment in addition to the accrued interest, and the total proceeds have been reinvested in fourth Liberty loan 4^ per cent bonds to the face amount of $8,867,550, which were held in the fund on November 15,1921. The administration of the retirement features of the civil service retirement act is intrusted to the Commissioner of Pensions under the direction of the Secretary of the Interior. While a sufficient time has not elapsed to enable definite conclusions to be drawn with respect to the extent of the advantages which may be expected from the retirement law, it may be stated in geineral from the experience of the Treasury up to date that it has already proved helpful and that it has resulted in improved efficiency and economy in the transaction of the public business. There are two suggestions, however, in connection with the retirement act which, in my opinion, should receive the careful consideration of the Congress, namely, (1) the possibility that the age limit for retirement might be loAvered from 70 years to not more than 68 years, and (2) whether the amount of the annuities granted under the act should be somewhat increased. I t is believed that if the retirement age were lowered and at the same time further restrictions were placed upon more than one extension of service after the retirement age, the public service would receive still further SECRETARY OF THE TREASURY. • 129 benefits from the retirement plan. This, hoAvever, should not be done unless increased annuities Avere granted. At the present time the annuities under the act appear to be small, particularly if one takes into consideration the prevailing prices of the necessaries of life and the further fact that in the majority of cases it is rarely possible at the average salary paid by the Government for employees to lay aside while in the service an amount of savings sufficient to cover any deficiencies in the annuity. A table showing the number of employees retired and total salaries and amount of annuities granted to June 30, 1921, is attached to this report as Exhibit 73, page 373. SURETY BONDS. The Section of Surety Bonds during the hscal year 1921 received, approA^ed as to corporate surety and either filed in the section or forwarded to the several divisions of the General Accounting Office, about 100,000 bonds. Of this number about 90,000 Avere executed by corporate sureties and about 10,000 by individual sureties. The aggregate penalties of these bonds amounted to about $1,600,000,000, Avith an aggregate total premium charged of approximately $2,600,000. Of the total number of bonds approved about 82,000 were Treasury Department bbnds and '3,701 Avere for the NaA^y Department, which is the next in order in number of bonds required. During the past year seven new surety companies ^have qualified to transact business Avith the Government. Four companies have during that period of time become insolvent and one company has voluntarily retired from business. EffectiA^e July 1,1921, the Section of Surety Bonds Avas transferred to and became a part of the Division of Appointments of the Treasury Department, in accordance with the provisions of.the legislative, executive, and judicial appropriation act approved March 3, 1921. ANNUAL REPORT OF D E L I N Q U E N C I E S OF DISBURSING R E N D I T I O N OF T H E I R OFFICERS IN THE ACCOUNTS. The act of July 31, 1894, as amended by section 4 of t h e act of May 28, 1896, required the Secretary of the Treasury on the first Monday of January in each year to make report to Congress of such officers and administrative departments and offices of the Government as were, respectively, at any time during the last preceding fiscal year delinquent in rendering or transmitting accounts to the proper offices in Washington and the cause therefor, and in each case to indicate whether the delinquency was waived. The Secretary was also required to report officers, including postmasters and officers 70073—FI 1 9 2 1 — ^ 9 130 ' REPORT ON THE FINANCES. of the Post Office Department, Avho were found upon final settlement of their accounts to have been indebted to the Government, with the amount of such indebtedness in each case, and who, at the date of making report, had failed to pay the same into the Treasury. The Comptroller General of the United States, by decision of October 7, 1921, has held that by reason of the budget and accounting act, approved June 10, 1921, the annual report of delinquencies and balances found due should herea-fter be made by the General Accounting Office and not by the Treasury Department. The annual report due on the first Monda}^ in January, 1922, and thereafter Avill accordingly be rendered by the General Accounting Office and not by the Treasury. RECOGNITION OF ATTORNEYS AND AGENTS REPRESENTING CLAIMANTS BEFORE T H E TREASURY AND OFFICES T H E R E O F . The Treasury Department h^s maintained for many years a roll of attorne3^s and agents who bave been recognized under the act of July 7, 1884, to represent claimants before the Treasury Department and offices thereof. With the large increase in claims pending before the department and in the number of applicants for enrollment, particularly with reference to internal-revenue matters, it became necessary to. adopt new regulations Avith regard to practice before the department, and Treasury Department Circular No. 230, dated February 15,^1921, as.amended June 7, 1921, and July 1, 1921 (Exhibit 67, p. 340), Avas accordingly issued. This circular establishes a Committee on Enrollment and Disbarment, and sets foith the laws and regulations governing the recognition of attorneys, agents, and other persons representing claimants before the Treasury Depart-^ ment and offices thereof. Since February 15, 1921, OA^er 3,000 persons haA^e been enrolled to practice, and scA^eral hundred applications arc now pending. The Committee on Enrollment and Disbarment is organized with representation from the several Treasury offices concerned, and operates under the general superAdsion and direction of the Secretary. One of its most important functions is the control of improper practices before the department, and in this Avork it has endeavored to keep in close contact with the Grievance Committees of the scA^eral States and local bar associations. The folloAving resolution, adopted at the annual meeting of the American Bar Association in 1921, evidences the cooperation extended to the committee by the bar associations: " Whereas, uncier and by Adrtue of certain acts of Congress relating' thereto, the Secretary of the Treasury has appointed a Committee on Enrollment and Disbarment t.o receive and consider applications to be recognized as attorney, agent, or other representative before the Treasury Department or SECRETARY OF THE TREASURY. 131 the several bureaus thereof; to receive complaints against those enrolled; conduct hearings; make inquiries; perform other duties as prescribed; and dO' all things necessary in the matter of proceeding for enrollment or disbarment of such attorneys, agents^ or other representatives, pursuant to the regulations of the Treasury Department; and Whereas, it is important that the said Committee on Enrollment and Disbarment 'have the assistance of qualified organizations in the different States in the securing of information concerning the character and qualifications of persons applying for enrollment as such agents and attorneys; and Whereas, it is believed that this service can be rendered effectively by the several State and local bar associations of the country: Now, therefore, Resolved by the Conference of Bar Association Delegates attending the present session of the American Bar .Association, That we earnestly recommend to the several State and local bar associations of the United States that they shall each put themselves in communication with the Secretary of the Treasury of the United States and offer to render to the Committee on Enrollment and Disbarment appointed by him such assistance as they may be able in the investigation of character and the necessary qualifications of persons Avho may apply to said Committee for recognition as agents and attorneys to represent those having business before the said Department, and also in* any investigation in disbarment proceedings or otherwise, that may be made by said Committee into the practices of any such agents and attorneys as may have been recognized by the said Department, and that each of said bar associations shall delegate to a committee of its. own body the performance of the duties and rendering of the service pertaining to the above-mentioned matters, and communicate the name? and addresses of said committee or its Chairman to said Committee on Enrollment and Disbarment of the Treasury Department; and further Resolved, That the said committees of the bar associations of the respective States and of the local bar associations shall furnish to the Secretary of the Treasury from time to time, through the said Committee on Enrollment and Disbarment, such evidence as they may possess that would indicate the unfitness of any person admitted to practice before the Treasury Department or any applicant for such enrollment; and that said committee of said bar associations, upon request from the Secretary of the Treasury', through said Committee on Enrollment and Disbarment, undertake to examine from time to time into the fitness of any persons admitted to practice before the Treasury Department or any applicant for such enrollment, and in that connection to furnish to the Secretary of the Treasury such information as may be available; it being understood that this conference regards the giving of legal advice concerning the income tax law as the practice of the law." P A N A M A CANAL. . The general fund of the Treasury Avas charged during the fiscal year 1921 with $18,318,397.85 on account of the Panama Canal, including $16,230,390.79 for maintenance and construction work and $2,088,007.06 for fortifications and miscellaneous expenditures. The general fund was credited during the year with $11,914,361.32 receipts from tolls, etc., making a net expenditure for the year of $6,404,036.53. The total amount expended for canal construction, fortifications, maintenance, etc., from the general fund to June 30, 1921, exclusive 132 REPORT ON THE FINANCES. of reimbursements from sales of bonds, was $341,257,961.41, while the amount received from Panama Canal bonds, including premiums thereon, issued in 1907,1908,1909,1911, and 1912, was $138,600,869.02, making the total expenditures on account of the Panama Canal to the close of the fiscal year 1921, $479,858,83.0.43. FINANCES. The following statements, showing receipts and expenditures, the estimates for the current fiscal year and the ensuing fiscal year, and the condition of the Treasury, are submitted: RECEIPTS AND EXPENDITURES. Fiscal year 1921. The receipts and expenditures of the Government during the fiscal year ended June .30, 1921, on the basis of warrants issued, adjusted to daily Treasury statements, rcAdsed, were as follows: (See further details on pages 140 to 150.) GENERAL F U N D . KECEIPTS. I. Receipts,: A. Ordinary receipts— 1. Customs -__ $308, 025,102.17 2. Internal rcA^enue— 1. Income and profits taxes 3, 228,137, 673. 75 2. Miscellaneous internal revenue 1, 351, 835, 935. 31 3. Sales of public lands 1,530,439.42 4. Miscellaneous receipts, including Panama Canal 695, 946, 543. 20 5,585,475,693.85 5. Adjustment to the general fund— 1. Decrease in uncovered receipts, June 30, 1921, under such amount, .June 30,1920_ Total ordinary receipts^.. 958, 648. 62 ^___ 5, 584, 517, 045. 23 Total ordinary expenditures, including public-debt expenditures chargeable against ordinary receipts (see II beloAv)— 5, 517,110, 856.11 Excess of ordinary receipts 67, 406,189.12 SECRETARY OF THE TREASURY. 133 EXPENDITURES. II. Expenditures: , A. Ordinary disbursements (see note, p. 134) — 1. Legislative ______• ^ 2. Executive 3. State Department .^4. Treasury Department (includes $255,752,739.49 MVar-kisk Insurance) 5. War Department 6. Navy Department 7. Interior Department (excludes Indian service and pensions 8. Post Oflice Department (excludes Postal Service payable from postal revenues, but includes deficiencies paid from general fund) _ 9. Department of Agriculture 10. Department of Oommerce 11. Department of Labor 12. Department of .Justice— .— 33. Judicial branch _" 14. Independent oflices— 1. Federal control of transportation systems and transportation act, 1920 2. ShippingBoard . 3. Federal Board for Vocationa.1 Education ____^ 4. Interstate Commerce Commission ' 5. AU other. • 15. District of Columbia____ 16. Panama Ganal 17. Indian service—— 18. Pensions 19. Interest on the pubUc debt 20. Purchase of foreign obligations 21. Purchase of farm-loan bonds 22. United States Government life-insurance fund investnients ^ 23. Civil-service retirement and disability fund investment Total disbursements $18, 480, 866. 22 / 2, 793, 626. 69 8, 523, 891. 27 '471,695,0.50.15 ' 564, 564, 500. 63 ' 647, 870, 645. 21 40, 804, 923. 39 ° 135, 239, 697. 83 120, 599, 697. 08 25, 892, 589. 05 7, 040, 856. 88 4,128, 401. 27 13, 519,049. 26 739, 019, 362. 64 92,886,783.88 104, 672, 029' 43 6, 097, 061. 30 ' 14, 216, 224. 61 23, 242, 259. 54 16,230,390.79 41, 470, 807. 60 260, 611, 416.13 996, 676, 803. 75 73, 896, 697. 44 8, 60O, 000. 00 20, 558, 946. 94 ; 8, 000, 000. 00 4, 467, 332, 578.98 * Includes Tariff Comuiission, Alien P r o p e r t y Custodian, Bureau of Efficiency, Civil Service Commission, and European Food Relief. 2 Does not include Army, Navy, and Marine Corps allotments of pay. 8 Includes public buildings and expenses of loans. * Includes rivers and harbors and Army allotments of pay. Does not include maintenance and operation of P a n a m a Canal. 5 Includes Navy and Marine Corps allotments of pay. • I n c l u d e s additional compensation, Postal Service (payable'from T r e a s u r y ) , and Federal control of telepbone and telegraph systems. ' Includes Food and Fuel Administration, Council of National Defense, Housing Corporation, State, War, and Navy D e p a r t m e n t Buildings, I n t e r d e p a r t m e n t a l Social Hygiene Board, F e d e r a l T r a d e Commission, Federal Reserve Board, Employees' Compensation Commission, Smithsonian I n s t i t u t i o n , and other independent offices. 134 REPORT ON T H E FINANCES. I I . E x p e n d i t u r e s (continued) : A. Ordinary disbursements (continued). 24. Adjustments to the general fund— 1. Decrease of uncovered repayments on J u n e 30, 1921, under such amount on J u n e 30, 1920 $1, 380, 889.12 2. Decrease in book credits of disbursing ofRcers . and agencies^Avith the T r e a s u r e r on J u n e 30, 1921, under such amount on J u n e 30, 1920 630, 831, 620. 57 632, 212, 509. 69 3. Increase in amount of unpaid w a r r a n t s on J u n e 30, 1921, over such amount on J u n e 30, 1920 4, 827, 582. 56 $627, 384, 927.13 Total ordinary cash expenditures 5,094, 717, 506.11 B. Public debt expenditures chargeable against ordi- n a r y receipts— 1. Sinking fund 261,250,250.00 2. P u r c h a s e s of Liberty bonds from foreign repayments -^ 73,939,300.00 3. Bonds and notes received for F e d e r a l estate taxes 26, 479, 300. 00 4. Redemptions from Federal reserve bank franchise t a x receipts 60, 724, 500. 00 Total 422, 393, 350. 00 Total ordinary expenditures, including sinking fund and other debt expendit u r e s chargeable against ordinary receipts 5, 517,110, 856.11 NOTE.—The term " Disbursements " as used in these tables is on the basis of warrants issued (net) and includes unexpended balances to the credit of disbursing officers at^the end of the year, but not expenditures under such unexpended balances at the beginning of the year (taken up net in Itein II, A.24-2). 135 SECBETAEY OF THE TKEASXJEY. PUBLIC DEBT. [. Receipts (continued) : B. Public debt receipts— 1. Fourth Liberty loan. '$2,213.00 2. Victory Liberty loan J' 12, 730.00 3. Treasury notes, Series A-1924___ 311,191, 600. 00 4. Treasury (war) savings securities 26,418,352.19 5. Certificates of indebtedness 8,486,964, 950. 00 6. Postal savings bonds 178, 880. 00 7. Federal reserve bank notes and national bank notes 40,186, 945. 00 Total public debt receipts 8, 864, 925, 784,19 II. Expenditures (continued) : C. Public debt expenditures— 1. First Liberty loan 200, 000. 00 2. Second Liberty loan 8, 770, 450. 00 3. Third Liberty loan 51,155,500.00 4. Fourth Liberty loan 39, 499, 250. 00 5. Victory Liberty loan 332,587,450.00 6. Treasury (war) savings securities 159,731,963.18 7. Certificates of indebtedness 1 8, 552, 216, 500. 00 8. Federal reserve bank notes and national bank notes • 37, 460, 631. 00 9. Miscellaneous redemptions 152, 269. 69 Total public debt expenditures 9,181, 774,013. 87 Excess of public debt expenditures over public debt receipts— Public debt expenditures chargeable against ordinary receipts 316, 848, 229. 68 422, 393, 350. 00 Excess of public debt receipts over public debt expenditures, exclusive of such expenditures chargeable against ordinary receipts 105, 545,120. 32 Summiary of general fund transactions, fisca,l year ended June 30, 1921. Receipts. Expenditures. •Ordinary receipts, including trust-fund receipts but excluding postal revenues $5,584,517,045.23 Expenditures for current and capital outlays^ including trust-fund expenditures, but excluding Postal Service paid from postal revenues Public-debt receipts 8,804,925,784.19 Public-debt expenditures chargeable against ordinary receipts Other public-debt expenditures - §5,094,717,506.11 Total expenditures from the general fund.. Excess of receipts over expenditm'es 14,276,491,519.98 172,951,309.44 Grand total. 14,449,442,829.42 422,393; 350.00 8,759,380,663.87 14,449,442,829.42 'General-fund balances: Balance per daily Treasury statement June 30, 1920 $357, 701, 682. 23 Add net excess of receipts over expenditures in June reports subsequently received-. 2, 245, 338.10 359,947,020.33 F^xcess of receipts over expenditures (as above) fiscal year 1921_ 172,951,309. 44 Balance in the Treasury June 30, 1921, as per statement of the public debt of the United States Government532,1^8,329.77 1 Counter eritries. 136 REPORT ON T H E FINANCES. P o s t a l Service. [Exclusive of Post Office Department proper, which is included in " Civil Establishment."] .Postal-revenue receipts $463, 491, 274. 70 Postal service paid from postal revenues ^ 463, 491, 274. 70 United S t a t e s notes {greenbacks). Issues to replace Avorn and mutilated notes . $319, 324, 000. 00 Worn and mutilated notes retired 319,324,000.00 .The redemptions during the year of the notes unfit for circulation necessitated the issue of a like a m o u n t thereof to maintain the outstanding aggregate of the notes a s required by law. Gold reserve fund. Balance in reserve fund J u n e 30, 1920 Balance in reserve fund J u n e 30, 1921 ; $152,979,025.63 152,979,025.63 The redemptions of notes for gold from the reserA-e fund during t h e year v/ere: United States notes, $416,290. As the redeemed notes were exchanged each day for gold in the general fund, t h e reserve wa:s maintained a t the fixed sum required by law, including $2,979,025.63 t a x on additional circulation received under act of May 30, 1908. T r u s t funds held for the redemption of the notes and certificates for which they 0 a r e respectively pledged. Gold coin and bullion__ $716,532,989 Silver dollars 201, 534, 213 Silver dollars, 1 8 9 0 — ' 1, 576,184 Gold certificates standing Less amount in Treasury out$795, 848, 929 the " 79,315,940 Net Silver certificates standing Less amount in Treasury - 716, 532, 989 out202> 578, 683 the "Net T r e a s u r y notes (1890) outstanding Less amount in the Treasury NetTotal 919, 643, 386 Total 1, 044, 470 201, 534, 213 1, 576,184 1,576,184 919, 643, 386 1 Exclusive of $1,374,014.56 for 1920 additional compensation, other payments of $144,387.34 on account of the Postal Service, and $130,128,458.02 for deficiencies in the postal revenues paid from the general fund; grants from the Treasury of $6,519,683.59 transferred to the civil-service retirement and disability fund ; and $26,015,215.53 paid from prior postal balances. SECRETARY OF THE TREASURY. 137 Gold fund, Federal Reserve Board. Gold coin and bullion $1,537,856,895.45 Sinking fund. The appropriation available during the fiscal year 1921 for the purposes of the sinking fund was $256,230,010.66, of which expenditures were made amounting to $254,844,576.50, resulting in the retirement of $261,250,250 face amount of Victory notes. F u r t h e r details as to purchases appear elsewhere in this report. CONDITION OF THE TREASURY JUNE 3 0 , 1 9 2 1 . The public debt of the United States at the close of the fiscal year 1921 is set forth in detail, as follows: Interest-bearing debt: • i Loan-of 1925, 4 per cent $118, 489, 900. 00' Consols of 1930, 2 per cent 599, 724,050.00 Panama Canal loan, 2 per cent 74,901, 580. 00 Panama-Canal loan, 3 per c e n t — 50,000,000.00 Postal savings bonds, 2^ per cent 11, 718, 240.00 Conversion bonds, 3 per cent 28, 894, 500.00 Certificates of indebtedness — — 2, 699,330,450. 00 Treasury (war) savings securities— 694,105,410.37 First Liberty loan, 3i per cent — 1, 410,074,250. 00 First Liberty loan converted, 4 per cent 17, 982, 800. 00 First Liberty loan converted 4^ per cent 520,709,600. 00 First Liberty loan second converted, 4i per cent .3,492,150.00 Second Liberty loan, 4 per cent 77, 870,150.00 Second Liberty loan converted, 4^ per cent 3, 238, 666,400. 00 Third Liberty loan, 4i per cent 3, 611, 560, 300. 00 Fourth Liberty loan, 4i per cent 6, 354, 860, 350. 00 Victory Liberty loan, 3 | and 4 | per cent— 3, 913, 780, 350.00 Treasury notes, series A-1924 311,191, 600. 00 -— — $23, 737, 352, 080. 37 Debt on which interest has ceased: Funded loan of 1891 20, 800. 00 Loan of 1904— 13,050.00 Funded loan of 1907 380, 800. 00 Loan of 1908-1918 376, 660.00 Refunding certificates 10,350.00 Old debt • — 893,960.26 Certificates of indebtedness, matured 9, 244, 000. 00 10,939,620.26 138 REPORT ON T H E FINANCES. Debt bearing no i n t e r e s t : United States notes (greenbacks), less gold reserve . B a n k notes, redemption account Old demand notes F r a c t i o n a l currency $193, 701, 990. 37 32, 204, 594. 00 53,012.50 1,999,310. 90 $227,958,907.77 Total interest and noninterest bearing debt, exclusive of certificates and notes offset by coin and bullion (gross debt) Cash in the T r e a s u r y J u n e SO, 1921. [From revised statements.] Reserve f u n d : Gold coin a n d bullion—" — Trust funds: Gold coin and bullion Silver dollars Silver dollars of 1890 Total 23,976,250,608.40 $152, 979, 025. 63 716, 532,989.00 201, 534, 213. 00 ' 1, 576,184. 00 — - 919, 643, 386. 00 » Gold fund. Federal Reserve B o a r d : Gold coin and buUion. General f u n d : In T r e a s u r y ofiices— Gold — S t a n d a r d silver doUars United States notes F e d e r a l reserve notes F e d e r a l reserve bank notes National-bank notes Subsidiary silver coin Minor coin Silver bullion ( a t cost) Unclassified (unassorted currency, e t c . ) -Public debt paid, awaiting reimbursement _ 1, 537, 856, 895. 45 $263,015,170. 02 10, 624, 648. 00 4, 031, 479. 00 4,719,921.00 2, 422,847. 50 248, 974. 50 9, 663, 502. 04 2,392,673.78 56,720,406.41 3,141,005.13 727, 446. 76 357, 70S, 074.14 In Federal reserve banks In t r a n s i t ^_— 43, 475, 862. 73 30, 083, 061. 41 • In special depositaries— Account of sales of T r e a s u r y notes and certificates of indebtedness I n national-bank depositaries— T o credit of T r e a s u r e r .of t h e United States To credit of other Government officers In t r a n s i t — 73,558,924.14 395, 738, 063.16 8,207,647.02 16, 036, 064. 70 2, 440, 380. 72 26, 684, 092. 44 SECRETARY OF THE TREASUEY. •General fund—Continued. I n t r e a s u r y of Philippine Islands— To credit of T r e a s u r e r of t h e United States I n foreign depositaries— To credit of T r e a s u r e r of the United States T o credit of other Government officers'_ . 139 $7,917,707.88 $710,262.94 51, 548, 267. 84 52, 258, 530. 78 913,865,392.54 Deduct current liabilities— National - b a n k note 5 per cent fund $18, 495, 044. 98 Less n 0 t e s in process of redemption 13,490,886.48 T r e a s u r e r ' s checks o u t s t a n d i n g Post Office D e p a r t m e n t balance— B o a r d of trustees, Postal SaA^ings System balance Balance to credit of postmasters, clerks of courts, disbursing ofl&cers, etc Undistributed assets of insolvent national banks Deposits for— Redemption of Federal reserve notes (5 per cent fund, gold) Redemption of F e d e r a l reserve bank notes (5 per cent fund) Retirement of additional circulating notes, act of May 30, 1908 Miscellaneous redemption accounts 1 — 5, 004,158. 50 298,047.10 18,769,940. 53 4,121, 544. 01 77,659,580.48 1, 630, 871. 72 2.59,178, 087. 04 .9,442,096.55 67, 560. 00 4, 795,176. 84 380,967,062.77 Balance in the T r e a s u r y J u n e 30, 1921, as per statement of the public debt of the United States Govment 532, 898, 329. 77 * This amount has been largely reduced since the close of the fiscal year. 140 REPORT ON THE FINANCES. Comparison of receipts, fiscal years 1921 and 1920. 1921 1920 Increase, 1921. Decrease, 1921. Customs $308,025,102.17 8323,536,559.25 $15,511,457.08 Internal revenue: 728,798,329.85I n c o m e a n d profits t a x e s . . 3,228,137,673.75 3,956,936,003.60 Miscellaneous 1,351,835,935.31 1,442,213,241.46 90,377,306.15 Sales of p u b h c l a n d s 1,530,439.42 1,910,140.20 379,700.7a S979,923.20 1,172,705.64 192,782.44 P a s s p o r t fees 4,005,676.61 Consular fees 5,676,850.61 1,671,174.00 Profits on coinage, buUion de240,597.82 12,369,612.23 posits, etc 12,610,210.05 T a x on circulation of n a t i o n a l 330,910.88 banks 4,799,615.73 4,468,704.85 37,078,988.55 Food A d m i n i s t r a t i o n 37,078,988.55 I n t e r e s t on loans to foreign Governments : 3,751,433.43 14,575,873.48 18,327,306.91 I n t e r e s t on foreign obhgations, sale of s u r p l u s p r o p e r t y , W a r Department 12,216,329.06 485,179.87 12,701,508.93 P r i n c i p a l p a y m e n t s on foreign loans 71,045,188.47 12,633,034.91 83,678,223.38 5,668,852.42 10,987,423.67 I n t e r e s t on p u b l i c deposits 16,656,276.09 P r e m i u m o n converted a n d 11,624,659.99 war-risk i n s u r a n c e 10,427,122.66 22,051,782.65 C u s t o m s fees, fines, p e n a l t i e s , services of officers, etc 1,096,077.24 • 77,208.39 1,173,285.63 I n t e r e s t on l o a n s t o railroad companies 2,879,873.33 2,963,873.33 1 84,000.00 Sale of w a r supplies, W a r De118,687,180.9a partment 300,285,959.76 181,598,778. 78 P a y m e n t b y G e r m a n Govern7,807,791.82 m e n t m i d e r t e r m s of armistice 3,346,675.40 11,154,467.22 Interest on a d v a n c e p a y m e n t s 1,830,639. 31 to contractors 2,498,022.36 667,383.05 D o n a t i o n of r o y a l t y on m a c h i n e 518,961.51 guns 1,304.61 520,266.12 Decrease of c a p i t a l stock U n i t e d 250,000,000. oa^ s t a t e s Grain Corporation 350,000,000.00 100,000,000.00 F r o m operations a n d disposal of properties, U n i t e d S t a t e s 820,819. 63 H o u s i n g Corporation 3,419,235.54 4,240,055.17 F r o m District of C o l u m b i a 145,757.25 415,349.04 561,106.29 sources Sale of explosive p l a n t , N i t r o , 700,000.00' 1,400,000.00 700,000.00 W ; Va Forest Service, coopisrative 2,044,592.13 98,550. 95. 1,946,041.18 fund 641,584.90 24,786.94 666,371. 84 E a r n i n g s of r a d i o service N a v a l p e t r o l e u m reserve l a n d s , 3,117,600. 00 3,117,600.00 oil-leasing a c t 5,193,548. 55 5,193,548.55 P a s t p r o d u c t i o n s , oil-leasing a c t F u t u r e p r o d u c t i o n s , oil-leasing 1,414,567.69 1,414,567.69 act •. Work done b y W a r Depart182,269.48527,053.71 344,784.23 ment 640,154. 83 295,146.56 935,301.39 R e n t of p u b l i c buildings (AVar). N a v y h o s p i t a l a n d clothing 942,099.42 1,532,478.37 2,474,577.79 funds, fines, forfeitures,"etc.. Sales of o r d n a n c e m a t e r i a l s , 1,063,964.04 169,049.92 1,233,013.96 etc. ( W a r ) 144,408.54 1,609,351.29 1,753,759.83 L a n d fees Sales of w a r s u p p h e s , N a v y 7,182,312.04 8,986,649.41 1,804,337.37 Department 2,934,784.503,009,737.54 74,953.04 Sales of n a v a l vessels 164,955.63 219,320.65 384,276.18 R e v e n u e s of n a t i o n a l p a r k s 90,721.66 2,696,502.46 2,6.05,780.80 Fees o n l e t t e r s p a t e n t R e t u r n of a d v a n c e s t o reclama1,000,000.00 1,000,000.00 t i o n fund 25,730.37 94,376.62 68,646.25 D e p r e d a t i o n s on p u b h c l a n d s . . Deposits for s u r v e y i n g p u b l i c 38,888.65^ 101,213.16 62,324.51 lands — Oregon a n d Cahfornia l a n d 245,737.73 363,802.04 g r a n t fund Proceeds of t o w n sites, etc., 44,811.26. 77,155.19 32,343.93 R e c l a m a t i o n Service 71,036.03 C o m m e r c e collections 234,868.81 305,904.84 "2,*286,*579.*9l Forest-reserve fimd 4,871,877.84 2,591,297.93 2,848,648.14 I m m i g r a n t fmid 2,919,245.55 5,767,893.69 421,062.66 N a t u r a h z a t i o n fees 491,538.50 912,601.16 1 E x c l u s i v e of $4,369,607.49'interest received on a c c o u n t of loans t o railroads u n d e r section 210 of thfr t r a n s p o r t a t i o n a c t of 1920, a n d $26,415,163.88 i n t e r e s t collected u n d e r t h e provisions of t h e F e d e r a l - c o n t r o l a c t of Mar. 21 1918, w h i c h a m o u n t s were credited, respectively, t o t h e revolving funds, " L o a n s t o r a i l r o a d s ' ' a n d ' ' F e d e r a l control of t r a n s p o r t a t i o n s y s t e m s . " SECRETARY OF THE TREASURY. 141 Comparison of receipts, fiscal years 1921 and 1920—Continued. 1921 Proceeds of seal and fox skins.. Alaska fund Judicial fees,, fines, penalties, etc Surplus postal revenues, prior years Estimated increased postage... Bales of Government property.. Rent of public buildings, grounds, etc Sales of lands and buildings Bales to Indians Franchise tax- (surplus earnings of Federal reserve banks). District of Columbia, general receipts :...: Funds contributed for river and harbor improvements— Reimbursements on account of expenditures made for Indian tribes..'. Assessments on Federal reserve banks, for salaries, etc.. Assessments on national banks for expenses of examiners 'Liquidation of capital stock. Federal land banks Discount on bonds, notes, and certificates purchased Interest on farm loan bonds — Miscellaneous Panama Canal tolls, etc 1920 $1,024,886.81 174,329.90 $1,241,648.25 213,121.83 4,382,676.51 3,077,945.57 356,550.78 300,000.00 4,913,000.00 12,647,092.24 1,083,000.85 246,260.00 383,246.87 429,751.42 347,986.96 226,362.65 Increase, 1921. Decrease, 1921. $216,76L44 38,79L93 $1,304,730.94 .300,000.00 4,913,000.00 12,290,541.46 653,249.43 """156," 884.'22' 60,724,742.27 2,703,893.63 58,020,848.64 14,439,985.93 11,446,050.58 2,993,935.35 3,774,947.68 2,428,920.65 1,346,027.03 33,729.48 77,077.70 4,819,339.72 3,229,366.98 1,589,972.74. 1,583,037.11 1,181,196.05 401,841. 06 954,835. 00 610,299.00 344,536.00 10,675,194.55 8,306,075.00 6,690,105.51 11,914,361.32 66,461,707.27 6,159,825.00 4,634,959.30 9,039,670.95 2,146,250.00 2,055,146.21 2,874,690.37 101,726.96 43,348.22 55,786,512.72 TRUST F U N D S . Department of State: Miscellaneous trust= funds.. War Department: Army deposit funds Soldiers' Home permanent fund Preservation of birthplace of Abraham Lincoln..."... Navy Department: Navy deposit fund Marine Corps deposit fund . Navy pension fund Interior Department: " Proceeds of Indian lands... Indian moneys, proceeds of labor Miscell an ecus trust f unds... Personalfunds of patients, St. Ehzabeths Hospital.. Pension money, St. Elizabeths Hospital ©istrict of Columbia: Miscellaneous trust fund deposits Washington redemption fund JPolice arfd firemen's relief fund 'Other trust funds Teachers' retirement fund deductions : .T)educt— Moneys covered by warrant in year subsequent to the deposit thereof AddMoneys received in fiscal year but not covered by warrant Total ordinary receipts. 335,211.57 10, 158,248.70 1,634, 821,009.01 408, 2,040. 00 2, 98,986.40 102,689.37 2,863.53 1,319,51'6. 82 62, 78, 1, 20,443,157. 66 909,301. 27 210,934.26 74,075.27 324,239.64 1,475,871.15 412,432.35 36,921.21 24,548.70 870. 01 2,416,492.24 24,633, 813, 152. 1,096,975.42 96,148. 51 236, 67, 607. 4,190,670.46 25,872. 47 6,467.50 826,234.80 674,542.12 148,826.20 199,945.20 51,119.00 161,168.67 26,253.68 166,325.98 27,945.82 5,157.31 1,692.14 192,847.75 5,585,475,693.85 151,692.68 192,847.75 ;, 705,044,690.09 1,105,240.83 1,735,493.29 5,584,370,453:02 6,703,309,196.80 146,592.21 1,105,240.83 5,584,517,045.23 6,704,414,437.63 , 194,972,846.79. 1,314,541,843.03 630,252.46 194,972,846.79 1,313,911,590.57 958,648.62 194,972,846.79 1,314,870,239.19 142 REPORT ON THE FINANCES. Comparison of receipts, fiscal years 1921 and 1920—Continued. 1921 Increase, 1921. 1920 Public debt: 1 $230. 00 F i r s t L i b e r t y loan . . . 1 920.00 Second L i b e r t v loan 498,492.50 Third Liberty'loan 1 $2,213.00 5,078,726.00 F o u r t h L i b e r t y loan 1 12,730.00 1,027,542,058. 23 Victory L i b e r t y l o a n . . . 311,191,600.00 T r e a s u r y notes Certificates of i n d e b t e d n e s s . 8,486,964,950.00. 14,728,725,968. 53 T r e a s u r y (war) savings se73,240.467.03 26,418,352.19 curities. 189,400. 00 178,880.00 P o s t a l savings b o n d s . 17,071,987. 50 40,186,945.00 B a n k - n o t e fund • Decrease^ 1921. $230.00 920. 00 ""3ii,'i9i,'66o."66" $498,492.50=5,080,939.00 1,027,554,788.236,241,761,018.53. 46,822,114. 84 10,520. 00; 23,114,957. 50 15,852,345,949. 79 334,307,707. 50 7,321,727,873.10' T o t a l receipts, exclusive 14,449,442, S29. 42 22,556,760,3S7.42 of p o s t a l 437,150,212.33 453,491,274.70 P o s t a l revenues 529,280,554. 29 26,341,062.37 8,636,598,112. 29- T o t a l receipts, including 14,912,934,104.12 22.993,910,599.75 postal 555,621,616.66 8,636,598,112.29' T o t a l p u b h c d e b t receipts. 8,864,925,784.19 ^ Counter entries. Comparison of disbursements, fiscal years 1921 and 1920. 1921 Increase, 1921. 1920 Decrease, 1921. CIVIL ESTABLISHMENT. Legislative: Senate • H o u s e of R e p r e s e n t a t i v e s . . Legislative, m i s c e l l a n e o u s . . Public Printer L i b r a r y of Congress Botanic Garden T o t a l legislative Executive proper: Salaries a n d expenses Rehef, etc., American citizens i n E u r o p e E u r o p e a n food rehef 1 Salaries and expenses,. A n t h r a c i t e Coal Commission U n i t e d States Tarifi C o m mission T e m p o r a r y g o v e r n m e n t for West Indian Islands N a t i o n a l security a n d deB u r e a u of Efficiency AVar T r a d e B o a r d AVar I n d u s t r i e s B o a r d . C o m m i t t e e on P u b l i c I n formation Alien P r o p e r t y C u s t o d i a n . . W h e a t g u a r a n t y fund B i t u m i n o u s Coal Conimis- sion Total executive p r o p e r . . . , $2, 470,110.61 6,618,808.00 106, 307. 27 8,-316, 080. 91 886, 625. 78 82, 933. 65 $2, 587, 742. 7, 059, 051. 222, 937. 8, 918, 954. 877,159. 73, 862. 45 93 77 07 04 44 $9,466. 74 9,071. 21 18, 480, 866. 22 19, 739, 707. 70 18, 537. 95 221, 495. 79 239, 356. 33 9,147. 74 1, 658, 829. 74 i'5,466.S0 93, 236,117. SO $117,631.84 440,243. 93: 116, 630.50' 602,873.16. 17, sm. 54 14,614. 54 91,577,288.06: 28,195. 44 28,195. 44 311,629.55 269, 394. 89 42,234. 66 343, 440. 00 200, 000. 00 143,440. 00 14, 303. 90 144.528.13 659.088.14 11,121, 701. 03 1, 953. 75 1 23, 298.38 152, 907. 92' 554, 453. 63 1 273,875..82 16, 669.66 104, 634. 51 64, 523. 52 462, 235. 74 1 4, 053. 72 2,793,626.69 1,277,379.43 ' 1351,711.76 803,945.08 350, 000,000.00 - 37,602.28 8, 379. 79' 847,825.21' 14,705. 91 416, 235. 28 341,709. 34 350,000,000.00 25, 312. 38- 21, 258. 66 444,839, 751. 21 786, 956.71 442,833,081.23-. 1 Excess of repayments. N O T E . — T h e t e r m " Disbursements " a s used in these tables is on the basis of warrants^ issued (net) and includes unexpended balances t o the credit of disbursing officers a t the end of the. year, but not expenditures under such unexpended balances a t the beginning of the year. SECRETARY OF THE TREASURY. 143 Comparison of disbursements, fiscal years 1921 and 1920—Continued. 1921 1920 Increase, 1921. Decrease, 1921. CIVIL ESTABLISHMENT—contd. D e p a r t m e n t of S t a t e : Salaries a n d expenses Foreign i n t e r c o u r s e D i p l o m a t i c salaries $1, 313,265. 94 $1,417,142.61 $103,876.67 1,329,126.01 2, 201,137.61 1, 389,459. 79 2, 382, 926. 36 60, 333. 78 181,788. 75 967, 353. 41 431,219.18 1,648,211.58 569,633. 31 680, 858.17 138,414.13 695,126. 86 932,436. 30 237, 309. 44 252, 615. 98 1,350,666.49 1,098, 050. 51 357,145. 25 187, 846. 42 100,000.00 100,000. 00 1 5, 445.17 83, 389. 80 C o n t i n g e n t expenses of foreign missions P o s t allowancp^ Contingencies of conEmergencies arising in the Diplomatic a n d T r a n s p o r t a t i o n of d i p lomatic a n d consular ofRcers I n t e r n a t i o n a l U n i o n of American Republics. Relief of A m e r i c a n citizens i n Mexico a n d Germany R e p r e s e n t a t i o n of interests of foreign Governments Relief of A m e r i c a n seamen P a y m e n t to P a n a m a . . . National security a n d • Miscellaneous i t e m s T r u s t funds T o t a l D e p a r t m e n t of State Treasury Department: Salaries, Secretary's office a n d divisions thereof C o n t i n g e n t fund for Secretary I n t e r n a t i o n a l H i g h Commission C o n t i n g e n t e x p e n s e s of Second Pan American F i n a n c e Conference C u s t o m s Service— Collecting customs Refunding excess MisceUaneous r e f u n d s . . Internal Revenue ServiceE x p e n s e s of collecting. Refunds a n d rehefs Miscellanpons ' E n f o r c e m e n t of n a r cotic a n d n a t i o n a l prohibition acts Suppressing counterfeiting MisceUaneous offices P u b l i c H e a l t h Service Medical a n d h o s p i t a l services : 88, 834. 97 2,003. 77 1 6, 621. 00 S, 624. 77 208,184. 46 250,000.00 177, 278. 74 250,000.00 30, 905. 72 1 37,419.37 397,155.64 62,421. 70 2,698,516. 97 404,562. 79 4,838.35 57,583.35 8,523,891.27 13,590,288. 51 266,412.67 1,653,141.83 1,564,355. 97 88,785. 86 2,735,936.34 7,407.15 5,332,809.91 5,-235.42 5,235.42 n.86 22,982. 43 22,970. 57 946,390.82 869,098.91 821.27 43,922.05 77,293."91 43,100.78 10,813,748. 57 10,023,315. 74 790,432.83 12,522,339.74 7,332,629. 50 5,189,710.24 10,948,'364.23 19,835,252.63 9,536.42 38,199.46 8,460.60 57/605. 39 1,075.82 33,138,636.45 30,503,919. 08 13,942.67 27,367,040.12 18,654,341.32 20,224. 56 5,771,596.33 11,849,577. 76 6,819,486.23 2,065,603. 38 4,753,882.85 358,184.42 3,407,596.08 1,838,774.20 17,812,997.31 .952,307.69 301,082. 64 3,171,624.62 1,989,771.68 21,415,757. 03 495,792. 75 57,101. 78 235,971. 46 of D e b e n t u r e s or d r a w backs C o m p e n s a t i o n i n lieu S169, 298. 83 35,437,847.37 8,886,888.40 19,405.93 6,281.89 150,997. 48 3,602,759.72 456,514.94 35,437,847.37 1 Excess of repayments. NOTE.—The term " Disbursements " as used in. these tables is on the basis of warrants issued (net) and includes unexpended balances to the credit of disbursing officers at the end of the year, but not expenditures under such unexpended balances at the beginning of the year. 144 REPORT ON TFIE FINANCES. Compai'ison of disbursements, fiscal years 1921 and 1920—Continued. 1921 ,1920 Increase, 1921. Decrease, 1921. CIVIL ESTABLISHMENT—contd. 'Treasury Department—Contd. W a r R i s k I n s u r a n c e i— Salaries a n d e x p e n s e s . Losses Military and naval compensation MiUtary and naval family allowance Mihtary and naval insurance N a t i o n a l security a n d defense Medical a n d h o s p i t a l services • G o v e r n m e n t life i n s u r a n c e fundInvestments C u r r e n t expenses "Federal F a r m L o a n Board—| Salaries a n d e x p e n s e s . . Engraving and printing P a p e r , etc., for U n i t e d States securities...." P r e p a r a t i o n a n d issue of F e d e r a l reserve notes E x p e n s e s of l o a n s •Charges on bullion sold Loss on silver dollars m e l t e d or b r o k e n u p • Coast G u a r d Independent Treasury M i n t s a n d a s s a y offices . Public b u i l d i n g s Sites,'construction, a n d equipment Cm'rent m a i n t e n a n c e . . . Salaries a n d expenses, n a tional-bank e x a m i n e r s . . . . N a t i o n a l security a n d defense Increase of c o m p e n s a t i o n . . . MisceUaneous i t e m s Special f u n d s ^ P h i U p p i n e special funds! P o r t o Rico special funds] Securities t r u s t fund $9,553,867.07 $15,472,890.11 521,790. 82 127,416,407.31 103,278,296.60 14,855,449. 26 30,594,051.37 75,852,541,96 2 85,090,030.27 2 9,811.65 2 32,262. 21 $5,919,023.04 521,790.82 $24,138,110. 71 15,738,602.11 160,942,572.23 22,450. 56 4,989,765.46 4,989,765.46 20,558,946.94 2,526,624.08 10,132,489.10 49,915.03 208,416.75 5,572,770. 76 196,046. 01 5,779,500.57 665,710.37 690,712.35 658,605.75 14,034,731. 52 72,032. 20 92,261. 08 22,122,776.85 25,479.63 12,805,403.07 338,131. 27 1,489,619.11 10,324,940. 34 635,326.64 1,545,234.77 2,480,462. 73 8,134,344.62 7,730,920.95 6,918,375.13 7,108,693.04 1,215,969.49 622,227. 91 269,542.39 ' 10,426,457.84 2,476,709.05 206,729.81 25,001.98 566,344.67 8,088,045.33 ""46," 552." 57' 297,195.37 55,615.66 1,609,211.80 1,339,669.41 3 1,025,5'09.44 14,154,309.10 933,014.46 2 295,-714. 87 12,215,722.78 452,281. 58 2,014,760. 51 1,919,029.78 2 2,021,54L62 856,380. 07 286,503. 53 2 13,447.03 492,253,997.09 260,451,947.17 2,486,890. 87 2,888,168.40 2,541,022. 83 3,960,223.77 897,598.77 1,123,032. 28 681,565. 72 1,551,457. 20 216,033.05 T o t a l AVar D e p a r t m e n t . . . 7,395,690.32 8,734,269.52 216,033.05 .:Navy D e p a r t m e n t : Salaries a n d expenses A d d i t i o n a l employees T e m p o r a r y office b u i l d i n g s . Increase of c o m p e n s a t i o n . . . 1,348,134.29 1,389,624.94 56,444.63 797,632.71 939,970. 35 1,000,454.41 208,222.08 648,505. 23 408,163. 94 389.170. 53 Total N a v y Department. 3,591,836. 57 2,797,152. 07 946,461.95 1,008,856.88 685,746.83 2,533,165.98 1, 111, 137.12 673,251.40 3,049,492.10 12,495.43 593. 09 292,647.16 1,260,905.68 55,92L29 300,975.13 1,277,559.32 T o t a l Treasm-y partment 729,764.57 . 1,938,586. 32 480,732.88 1,158,380.44 1,632,526. 25 2,008,094.59 De- ' W a r Department: Salaries a n d expenses A d d i t i o n a l employees Pubhc b u i l d i n g s and grounds Increase of c o m p e n s a t i o n . . . Ilnterior Department: Salaries and expenses, office of Secretary General L a n d Office P u b l i c L a n d s Service National security and defense I n d i a n Office P e n s i o n Office 1 E x c l u s i v e of a U o t m e n t s of p a y . 278,129,553.3 46,327,503.47 54,131. 96 1,072,055.37 428,424.92 1,554,612. 25 151,777.45 149,127. 48 151,777.45 102,280.24 '*5i6,'326.*i"2 55,328.20 8,327. 97 16,653.64 2 E x c e s s of r e p a y m e n t s . N O T E . — T h e t e r m ** D i s b u r s e m e n t s " a s u s e d i n t h e s e t a b l e s i s o n t h e b a s i s of w a r r a n t s i s s u e d ( n e t ) a n d i n c l u d e s u n e x p e n d e d b a l a n c e s t o t h e c r e d i t of d i s b u r s i n g officers a t t h e e n d of t h e y e a r , b u t n o t e x p e n d i t u r e s u n d e r s u c h u n e x p e n d e d b a l a n c e s a t t h e b e g i n n i n g of 7 t h e year. SECRETARY OF T H E TREASURY. 145 Comparison of disbursements, fiscal y^ars 1921 and 1920—Continued. 1921 1920 Increase, 1921. Decrease, 1921. CIVIL ESTABLISHMENT—contd. Interior Department—Contd. P a t e n t Office B u r e a u of E d u c a t i o n . CoUeges for agriculture a n d t h e mechanic arts . Geological S u r v e y B u r e a u of Mines Office of S u p e r i n t e n d e n t of Capitol B u i l d i n g a n d Grounds National parks Territorial governments.. St. Ehzabeths Hospital O t h e r beneficiaries C o n s t r u c t i o n , etc., of railroads i n A l a s k a I n c r e a s e of c o m p e n s a t i o n . . . MisceUaneous i t e m s Special f u n d s R e c l a m a t i o n fund R e v e n u e s of n a t i o n a l parks and Hot Springs, A r k . . D e p o s i t s for s u r v e y i n g publiclands P u b H c schools, A l a s k a fund Civil S e r v l c e r e t i r e m e n t fundInvestment Other • Miscellaneous t r u s t f u n d s . . Total Interior ment $1,643,383.75 496,569.60 $26,001.95 2,500,000.00 1,623,156.18 3,632,66L43 2,500,000.00 1,442,446.04 2,490,382.03 180,710.14 1,142,279.40 705,384.42 1,099,117.18 103,862.34 1,150,698.53 401,593.87 895,237.48 977,549.34 28,472.37 1,085,952.72 345,201.29 121,567.84 75,389.97 , 64,745.81 56,392.58 9,560,868.11 2,266,726.68 366,574.77 6,240,053.20 2,086,548.36 346,697.20 3,320,814.91 180,178. 32 19,877.57 5,950,300.54 764,538.02 82,758.81 23,308.12 66,033.22 128,362.16 73,312.51 48,592.13 8,000,000.00 3,100,000.00 183,163.27 187i865.06 48,804,923.39 28,199,495.23 $9,159.39 189,853.06 5,185,762. 52 59,450.69 62,328.94 24,720.38 8,000,000.00 3,100,000.00 4,701.79 Depart- P o s t Offi,ce D e p a r t m e n t : Salaries a n d expenses Deficiency i n "postal r e v e nues I n c r e a s e of c o m p e n s a t i o n . . . Miscellaneous i t e m s Additional compensation. P o s t a l Ser%dce Total Post partment $1,669,385.70 487,410.21 Office 21,570,387.51 1,968,552.02 1,869,651.83 98,900.19 130,128,458.02 345,315.77 227,648.67 114,854.21 320,886.80 375,077.97 130,013,603.81 24,428.97 1,374,014.56 35,698,400.00 134,043,989.04 38,378,870.81 1,195,708.79 12,018,557.68 7,034,708.00 4,050,922.16 6,802,667.03 3,614,947.83 3,653,315.06 1,953,124.68 1,202,400.88 440,257.79 1,869,222.34 2,241,398.22 236,346. 57 741,053.22 194,616.76 3,753,943.41 1,194,978.60 386,917.23 1,868,54L18 2,502,460.62 348,936.18 649,680.20 223,136.96 9,155,873.62 403,835. 35 1 5,085,659. 49 402,091. 52 6,872. 35 1,199,286.09 294,410.85 4,892,006.77 19S, 833.45 6,554,915.39 964,959.35 147,429.30 34,324,385.44 De- E e d e r a l control of t e l e g r a p h and telephone systems D e p a r t m e n t of A g r i c u l t u r e : Salaries a n d miscellaneous . A n i m a l I n d u s t r y , expenses. M e a t inspection, A n i m a l Industry F a r m e r s ' seed-grain l o a n s . . Entomology, expenses Soils, expenses . Markets expenses Plant Industry, expenses.. P u r c h a s e of seeds . Biological Survey, expenses. Orop E s t i m a t e s , e x p e n s e s . . Procuring, etc., n i t r a t e of soda P u b l i c R o a d s , exp'enses Stimulating agriculture a n d facilitating d i s t r i b u t i o n of p r o d u c t s Office of F a r m Management F o r e s t Service 130,136,932.97 34,471,814.74 10,822,848.89 232,040.97 435,974.33 100,628.35 1,953,124.68 7,422.28 73,340.56 681.16 261.062.40 112,589.61 91,373. 02 28, 520.20 14,241, 533.11 1,743. 83 1,192, 413.74 95, 577.40 1,662,908.62 1 Excess of repayments. NOTE.—The term " Disbursements" as used in these tables is on the basis ol! warrants issued (net) and includes unexpended balances to the credit of disbursing officers at the end of the year, but not expenditures under such unexpended balances at the beginning of the year. 70073—FI 1921- -10 146 EEPOBT ON T H E FINANCES. Comparison of disbursements, flscal years 1921 and i^gO—Continued. 1921 1920 Increase, 1921. Decrease, 1921. CIVIL ESTABLISHMENT—contd. Department of Agriculture— . Continued. Acquisition of lands for protection of watersheds, navigable streams Cooperative construction, rural post roads, etc National security and defense Federal Horticultural Board . Bureau of Chemistrv States Relations Service, expenses Cooperative extension work Weather Bureau, expenses. Increase of compensation... Cooperative work, Forest Service . Enforcement of insecticide act Preventing spread of European corn borer Special funds— Pajmaonts ' to States and Territories from National Forests, fund Roads and trails for States.. MisceUaneous special funds...- $1,179,472. 82 $663,271.43 $516,201.39 62,498,203.00 24,555,179.83 37,943,023.17 $119,365.75' 1136.45 119,229.30 649,420.72 913,637.92 595,084. 50 893, 745.66 54,336.22 19,892.26 3,112,941.70 5,031,577.73 1,532,492.10 3,012,856.60 2,197,977.24 3,057,075.57 4,471,593.71 1,512,657.06 2,812,614; 59 1,635,903.65 55,866.13 559,984.02 . 19,835.04 200,242.01 " 562,073.59 108,047.63 84,570.58 375,-954.07 23,477.05 375,954.07 ' 1,180,063.13 1,069,886. 88 363,433. 08 73,391.17 - 110,176.25 •465,828.06 102,394.98: 78,749.67 5,358. 50= Total Pepartment of Agriculture 120,599,097.08 66,611,066.69 Department of Commerce: Salaries and expenses Bureau of Standards Census Office Foreign and Domestic 355,190. 56 1,634,649.52 6,257,455.53 375,495.14 1,736,478.76 13,667,102.58 850,577.23 1,925,36L92. 9,719,309.48 1,233,278.92 316,760.58 860,273.94 1,820,607.18 8,896,988.95 1,354,342.31 257,587.30 12,086.30 2,519,707.52 91,182.12 3,563,705.59 2,213,087.16 38,200.29 968,636.58 8,392.79 969,643.68 11,533.04 25,892,589.05 35,765,045.92 1,345,850.74 391,357.08 257,144.12 668,668.71 1,111,02L81 2,926,434.11 310,846.11 254,677. 04 232,660.04 400,080. 70 301,749. 25 611,323.82 265,732. 41 2,530,893.99 * 135,000.00 266,358.27 390,485.02 57"344.'89' 844,289.40 395,540.12 175,846.11 Commftrcft., .. ' Coast and Geodetic Survey. Lighthouse Establishment. Bureau of Fisheries Bureau of Navigation .. National security and defense Increase of comneiisation Fish hatcheries* S t e a m b o a t - Inspection Service . . . . Miscellaneous i t e m s . . . . Total Department Commerce of Department of Labor: Salaries and expenses Bureau of Labor Statistics. Bureau of Naturalization Bnrftan nf I m m i grati nn Regulating immigration Immigran t stations. Children's Bureau Employment service . National security, and defense War emergency employment service : War labor administration Increase of compensation.. Miscellaneous Total Department of.Labor 3,585,242.15 57,573,872.54 o 104,754. 74 822,320. 53 20,304. 58 101,829.24 7,409,647.05 * 9,696. 71 121,063.39 59,173. 28 3,551,619.29 306,620.36 52,981.83 1,007.10 3,140.25 11,218,307.61 8,723.62 44,605.13 11,681.23 157,824.98 60,944.38 144,023. 89 83,079. 51 1 326.15 378.02 016,655.95 210,395. 66 290,130.24 190,371.27 518,415.57 79,666.72 290,456.3» 189,993.25 98,240.38 130,728.94 7,040,856, 88 6,125,23L15 1,701,989.84 786,364.11- 1 Excess of repayments. N O T E . — T h e term " Disbursements " as used in these tables is on the basis of w a r r a n t s issued (net) and includes unexpended balances to t h e credit of. disbursing officers a t the end of t h e year, but not expenditures under such unexpended balances a t the beginning of t h e year. SECRETARY OF THE TREASURY. 147 Comparison of disbursements, fiscal years 1921 and 1920—Continued. 1921 1920 Increase, 1921. Decrease, 1921. CIVIL ESTABLISHMENT—contd. T)epartment of Justice: Salaries and expenses Salaries of justices, assistant attorneys, etc Court of Claims National secmity and defense Salaries, fees, etc., of marshals Fees of witnesses Salaries and fees, district attorneys Fees of jm'ors Fees of clerks Fees of commissioners Support of prisoners Pay of bailiffs Miscellaneous expenses, United States courts Detection and prosecution of crimes Penitentiaries Increase of compensation... Misceiianeous items Total Department of Justice Independent bureaus and offices: . Interstate Commerce Commission ' Federal control of transportation systems, and transportation act, 1920.. Smithsonian Institution... National Museum , Rock Creek Parkway Commission , Zoological Park Salaries, etc.. Federal Reserve Board Council of National Defense War Finance Corporation.. Board of Mediation and Conciliation , Advisory Committee for Aeronautics United States Employees' Compensation Commission , Board for Vocational Education.: United States Shippmg • $1,034,439.04 $1,058,250.93 4,050,527.23 84,498.62 3,365,206.95 78,143.02 123,811. 89 $685,320.28 6,355. 60 1 5,526.45 38,325. 82 43.852.27 2,184,726.74 1,131,436.25 2,216,195.85 1,176,202.12 31,469.11 44,765. 87 851,901.32 1,219,765.47 1,897.11 331,451. 31 953,425. 88 231,849. 54 886,500. 60 1,229,347.15 124,604.89 280,850. 20 1,431,777.82 231,493. 06 34.599.28 9,581.68 122,707.78 50, OOL 11 478,351. 94 " " 3 5 6 . " 48' 612,676.72 556,822. 03 2,320,732.87 1,458,620.79 778,755.81 406,272.28 2,681,574. 64 2,141,156.97 762,752.88 408,040.70 17,647,450. 53 18,667,245.63 814,491.09 6, 097, 061.30 5, 847,961. 96 249, 099. 34 739,019,362.64 282,101. 02 413, 999.44 1, 038,614,901.18 269,712.77 407, 209.73 12, 388. 25 6,789. 71 140,619. 56 200, 407. 81 231, 059. 22 120, 094. 94 80, 312. 87 4,493,633.34 66,636. 05 2,608, 384. 26 107, 758. 20 150, 000, 000. 00 55,854..69 360,841.77 682,536.18 16,002.93 1,768.42 1,834,286.19 299, 595, 538. 54 90, 439. 66, 1, 885,249. 08 41,122.15 15a 000, 000. 00 20,945.97 26,116. 85 5,170. 88 184,600.52 229, 886.11 45, 285. 59 2, 529,334.29 2, 239, 801. 95 289,532.34 104,672, 029. 43 34, 984, 423.90 69,687, 605.53 Board- Salaries and expenses-. Emergency shipping fund National security and defense Food and Fuel Administrations— ., Salaries and expenses.. National eecurit}'- and defense United S t a t e s H o u s i n g Corporation ^ Interdepartmental ' Social Hygiene Board , Federal Trade Commission State, War, and Navy Department BuUdings.. 365,977. 55 462,911.10 96,933. 55 92, 563,969. 57 467,238,136.59 374,674,167. 02 1 43,163. 24 1, 393, 501.66 1, 436,664.90 - 98,425. 76 21,701.65 120,127.41 1 271,077.60 11,753, 986. 52 1,482,908. 92 .1,322, 237.63 1 2,038,712.77 3,360,950. 40 932,609. 70 1,010,327.37 1,791, 071. 03 1,021,653.58 858,461. 33 11,326.21 2, 204, 713. 55 2, 483,462. 33 278, 748. 7S I Excess of repayments. N O T E . — T h e term " Disbursements " a s used in these tables is on the basis of w a r r a n t s issued (net) and includes unexpended balances to the credit of disbursing officers a t t h e end of the year, but not expenditures under such unexpended balances a t the beginning of t h e year. 148 REPORT ON THE FINANCES. Comparison of disbursements, fiscal years 1921 and 1920—Continued. 1921 CIVIL ESTABLISHMENT—contd. Independent bureaus and offices—Continued. United States PU.erim Tercentenary Commission... Other independent offices.. 1920 ' Increase, 1921. Decrease, 1921. $242,645. 70 420, 788.61 $142,052.47 $242,645.70 . 278,736.14 956,891,461.86 1, 706, 547, 527.95 77,576,218.28 20,877, 085.79 18, 547,698.98 2,329,386. 81 846, 832.35 186,260. 08 710,488.48 149,499.86 136,343.87 36, 760. 22 8,873.07 9,403. 21 798,484.91 644, 771.98 156,733.29 194,721.37 169, 581. 69 147,143.92 22,437.77 160,000.00 26,393.92 12, 013. 84 9,693.97 160,000.,00 26,393.92 2,319.87 23, 242, 259. 54 20,413,42L77 2,867,355.39 38,517.62 Total civil establish11,868,398,844. 32 12,682,879,579.01 ment 573,951,054.08 1,388,431,788.77 Total independent bureaus and offices District of Columbia: Salaries and expenses Special fund,s— A\^ater department Washington Aqueduct. MisceUaneous special funds Trust fundsMiscellaneous t r u s t fund denosits Washington redemption fund Police and firemen's relief fund Teachers' retirement fundInvestment Other Other trust funds Total District of Colunibia- . - $827,232,284.37 529. 54 153,712.93 37, 988.08 •WAR DEPARTMENT. Military Establishment. Quartermaster Corps Pay, etc^ of the Army ^ . . . . Medical Department Ordnance Department Engineer IDepartment Chemical Warfare Service Signal Service A viation Military Academy Militarv posts National Guard. Vocational training of soldiers.. Civilian mUitary training camps Registration and selection for rnilitary service Increase of compensation Miscellaneous items Army accomit of advances Panama Canal, fortifications, etc. . Total Military lishment. Estab- 2 111, 874,070.32 424,357,422.05 6.826.589.94 91,914,274.32 2 33,538,743.81 1,873,592.57 7, Oil, 518.70 30,913,798.28 1,410,967.17 728,132.17 7,970,815.42 3,855,419.08 326,450,587.50 348,206,924.10 9.332.837.04 286,506,697.68 43,304,345.72 622,895.87 8.035.732.05 2 24,356,590.23 1,971,370.05 991,295.09 1,675,918.61 767,574.65 76,150,497.95 438,324,657.82 2,506,247.10 194,592,423:36 76,843,089.53 1,250,696.70 55,270,388.51 6,294,896.81 3,087,844.43 1,024,213.35 560,402.88 263,162.92 27,187.25 172,007.59 144,820.34 769,385.31 15,985,110.24 1.141.333.95 20,603,527.39 2,877,482.21 18,067,158.45 1,165,418.81 2,108,096.90 82,042.21 24,084.86 2,088,007.06 3,433,592.82 472,064,272.77 1,027,225,248.01 20,603,527.39 1,345,585.76 162,657,851.79 717,818,827.03 National cemeteries.. 12,401, 966.67 9, 561.125. 71 2,840,840. 96 National parks. 39, 559.32 189, 776. SO 150,217. 48 National homes for disabled soldiers. 5,347,136. 99 350; 255. SO • 4,996,881.19 State homes for disabled sol1,094, 584. 44 966, 341. 66 128,242.78 diers Medical and hospital services .. 4, 570,000. 00 4, 570,666. 66 1 Exclusive of purchase of obligations of foreign Governments and purchase of farm-loan bonds, heretofore cl assed as '' special." 2 Excess of repayments. 8 Includes payinent of allotments by Bureau of War Risk Insurance. N O T E . — T h e term ** Disbursements " a s used in these tables is on the basis of w a r r a n t s issued (net) and includes unexpended balances to the credit of disbursing officers a t the end of the year, but not expenditures under such unexnended balances a t the beginning of t h e year. SECRETARY OE THE TREASURY. 149 Comparison of disbursements, flscal years 1921 and'1920—Continued. 1921 1920 Increase, 1921. Decrease, 1921. WAR DEPARTMENT—continued. Soldiers' H o m e i n t e r e s t account Monuments . B r i d g e across P o t o m a c R i v e r , Q eorgetown, D . C W a r claims a n d relief acts Miscellaneous i t e m s Increase of c o m p e n s a t i o n Special funds: W a g o n roads, etc., Alaska fund MisceUaneous special fimds. T r u s t funds: P a y of t h o A r m y , deposit fund Soldiers' H o m e p e r m a n e n t fund .. Miscellaneous t r u s t f u n d s . . ' $21,777.21 $80,780. 56 55,445.67 $102, 566.77 4,809.07 575,135.00 703,885.30 441,128. 49 1,456,101. 78 440,000.00 987, 534.73 331, 539.19 817,618.93 109,589. 30 638,482.85 247, 993. 54 i:34,209.09 85,916. 57 92,660.62 162,076.97 41, 548.47 1 2,159,271.52 4,940,741. 34 1,271,876.21 1,700.00 848,612. 51 500. 00 423,263.70 1, 200.00 26,284,215.24 . 17,735,023. 80 16,082,873. 72 45,602,287,93 9,496,071. 31 34,800,217.64 12,860,335. 75 10,802,070. 29 : 3,721,963.06 2, 213,377.03 1,508,580. 03 T o t a l rivers a n d h a r b o r s . . 58,820,322.30 49,873,930.42 12,310,656.32 3,364,264.44 Total W a r D e p a r t m e n t . . 557,168,810.31 1,094,834,202.23 191,051,38L83 728,716,773.75 202,469,924.00 25,153,742.28 36,853,498.87 243,370,338.71 46,134,106.15 18,548,341.87 18,305,157.00 34,534,125.31 44,066,651.20 33,459,963.90 16,558,456.11 81,743,882.65 24,811,485.39 17,975,669.20 97,930,395.49 56,499,573.05 41,430,822.44 4,520,558.27 2 35,300,359.61 226,623,334.57 2,477,347.99 2 180,297,758.21 24,606,454.62 642,792.63 1 333,660,373.64 309,416:58 17,826'. 22 18,943,627.52 8,805,230.42 2 42,780,322.76 2,275,825.7. 2 189,353,302. 99 38,935,299. 94 200,366. 27 1140,050,309.08 521,395.40 52,965.47 4,207,810.15 1.745,015., 24 1,332,993.94 6,542, 791. 79 1,176,529.97 179,717.68 16,371,452.91 T o t a l w a r , misceUaneous, civil $50,636.60 135,135.00 283,649. 43 7,100,012.86 7, 533,682. 28 Eivers a n d Itarhors. I m p r o v i n g rivers Improving harbors Special funds for rivers a n d harbors 3,364,264.44 • NAVY DEPARTMENT. Naval Establishment. I n c r e a s e of t h e N a v y B u r e a u of Y a r d s a n d Docks B u r e a u of N a v i g a t i o n B u r e a u of C o n s t r u c t i o n a n d Repair.. B u r e a u of O r d n a n c e B u r e a u of S t e a m E n g i n e e r i n g . . B u r e a u of S u p p h e s a n d Accounts B u r e a u of Medicine a n d Surgery M a r i n e Corps N a v a l s u p p l y a c c o u n t fund Naval Academy P a y of t h e N a v y ;... Aviation J u d g m e n t s , Court of Claims General a c c o u n t of a d v a n c e s MisceUaneous i t e m s N a t i o n a l security a n d d e f e n s e . . Increase of c o m p e n s a t i o n Special funds: N a v a l hospital fund F i n e s a n d forfeitures Clothing fund T r u s t funds: P a y , Marine Corps, deposit fund P a y of t h e N a v y , deposit fimd Prize money Total Naval EstabUshment '. . 40,900,414.71 20,980,363. 87 37,677,231.45 8,648,478.51 4,284,672.15 7,479,963.15 226,62.3,334.57 201,522.23 9,055,544.78 14,328,845. 32 442,426.36 193,610,064.56 211,978.82 35,139.25 14,735,817.37 568,485.27 1,153,276. 26 12,914,244.70 72,739.67 72,739.67 110,604.04 644, 278,808. 64 87,048. 93 138. 52 23,555.11 629,893,115.87 343,022,789.02 138.52 328,637,096.25 1 Excess of repa3mients. «Includes pa3mients of aUotments by the Bureau of War Risk Insurance. NOTE.—The term " Disbursements " as used in these tables is on the basis of warrants issued (net) and includes unexpended balances to the credit of disbursing officers at the end of the year, but not expenditures under such unexpended balances at the beginning of the year. 150 REPORT ON THE FINANCES. Comparison of disbursements, fiscal years 1921 and 1920—Continued. 1921 1920 Increase, 1921. Decrease, 1921. INDIAN SERVICE. C u r r e n t a n d c o n t i n g e n t expenses FulfUling t r e a t y s t i p u l a t i o n s . . . Miscellaneous s u n p b r t s . •. I n t e r e s t o n I n d i a n trust-fund accounts S u p p o r t of I n d i a n s c h o o l s . . Miscellaneous e x p e n s e s . . . Trust funds.. T o t a l I n d i a n Service P u r c h a s e of obligations of foreign G o v c r n m e n t s P u r c h a s e of farm loan b o n d s . . P a n a m a Canal Pensions Interest on the public debt $1,444,109.65 595,190.15 700,258.19 $1,360,574.47 624,044.20 729,921.66 1,129,733.11 4, 788, l i s . 33 4,570,048. 21 28, 243, 349. 96 1.290,781. 27 4\ 373,455. 28 5,061, 970. 89 27,076,084.17 1,167, 265. 79 41,470,807.60 4.0, 516, 831.94 1,665,464.02 421,337,028.09 73,898,697.44 8,600,000.00 26, 887,356. 25 6,031,463.72 16,230,390. 79 213,344,204.11 260,611,416.13 996,676, 803. 75 1,024,024,440.02 10,19S 927.07 47,267,212.02 4,467,332,578. 98 D e d u c t r e p a y m e n t s received in fiscal y e a r b u t n o t covered b y warrant 6,139,748,221. 24 68,20t..86 1,449,091.98 4,467,264,370.12 6,138,299,129.26 A d d r e p a y m e n t s covered b y w a r r a n t i n year s u b s e q u e n t t o t h c deposit thereof 1,449,091.98 3,446,110.82 Total ordinary w a r r a n t disbursements 1 4,468,713,468.10 6,141,745,240.08 Public debt: F i r s t L i b e r t y loan, a t 3-^- per cent . 1 . F i r s t L i b e r t y loan, conv e r t e d a t 4 per cent F i r s t L i b e r t y loan, converted at 4\ per c e n t . . . . Second L i h e r t y loan Second L i b e r t y loan, conv e r t e d a t 4:1 per c e n t T h i r d L i b e r t v loan F o u r t h L i b e r t y loan . Victory L i b e r t y loan L o a n of 1908-1918 Certificates of i n d e b t e d ness, v a r i o u s r a t e s T r e a s u r y ( w a r ) savings securities B a n k - n o t e fund. F u n d e d loan of 1907 MisceUaneous r e d e m p tions Total public debt bursements . . $83,535.18 $28,854.05 29,663.47 161,048.16 414,663.05 491,'922.'68 711,488.36 347,440,330.65 18, 287,356.25 27,347,636. 27 1,167,156,828.04 2,839, 572,470. 30 1,167,156,828. 04 2,838,1-91, 581.18 1,380,889.12 1,997,018. 84 1,167,156,828.04 2,840,188,600.02 150.00 150.00' 550.00 14,862,000.00 14,861,450.00 199,300.00 1,000.00 17,475.700.00 10,007,700.00 17,276,400.00 10,006,700.00 8,769,450.00 51,155,500.00 39,499,250.00 332,587,450.00 143,200.00 231,142,700.00 296,338,250.00 405,221,500.00 249,006,500.00 416,140.00 222,373,250.00 245,182,750.00 3G5,722, 250.00 8,552,216,500.00 15,588,704,458.53 159,731,983.18 37,460,031.00 3,600.00 199,818,880.44 23,424,164.50 22,950.00 • 83,580,950.00 272,940. oHi 7,036,487,958.53 40,086,917.26 14,036,466.50 19,350.00 3,327. 78 2,141.91 9,181,774,013.87 17,036,444,271.25 97,619,708.41 7,952,289,965.79 1,204,776,536.45 10,792,478,565.81 • 5,469.09 dis- T o t a l disbursements, exclusive of postal 13,650,487,481. 97 23,178,189,511.33 P o s t a l Service, pay^^ble from postal revenues 418,722,295.05 2 463,491,274.70 T o t a l disbursements, including postal 14,113,978,756.07 23,596,911,806.38 44,768,979^65 1,309,545,516.10 10,792,478,565.81 1 Exclusive of principal of t h e public debt and P o s t a l Service. . 2 Exclusive of $1,374,014.56 for 1920 additional compensation, other p a y m e n t s of $144,387.34 on account of t h e P o s t a l Service, $130,128,458.02 for deficiencies in the p o s t a l revenues paid from t h e general fund, additional g r a n t s from, t h e T r e a s u r y of $6,519,683.59 t r a n s f e r r e d t o t h e civil-service r e t i r e m e n t and disability f u n d , . and $26,015,215.58 paid from p r i o r postal balances. N O T E . — T h e t e r m " D i s b u r s e m e n t s ' ' a s used in these tables is on t h e basis of w a r r a n t s issued ( n e t ) and includes unexpended balances t o t h e credit of disbursing officers a t t h e end of t h e year, but not expenditures under such unexpended balances a t the beginning of t h e year. 151 SECRETAR.Y OE THE TREASURY. The follow^iDg tabulations summarize the receipts and expenditures of the fiscal year 1921 and the estimated receipts and expenditures for the fiscal years 1922 and 1923 on the basis of the latest information received from the Bureau of the Budget and the various departments and establishments, and shows the estimated results at the €lose of each year: [On basis of daily Treasury statements.! A c t u a l , fiscal year 1921. N e t balance i n general fund a t b e g i n n i n g of fiscal y e a r . . Receipts: Ordinary Publicdebt Total Expenditures: Ordinary P u b l i c d e b t chargeable against o r d i n a r y receipts Other public-debt expenditures N e t balance i n general fund a t close of fiscal year Total Estimated, Estimated, fiscal year 1922. fiscal y e a r 1923. $357,701,682 $549,678,106 $420,125,251 5,624,932,961 2,865,825,322 3,968,453,663 3,686,271,598 3,345,182,750 5,231,069,550 8,848,459,965 8,204,403,367 8,996,377,551 5,115,927,689 422,113,000 2,.760,741,170 549,678,106 3,604,980,166 387,942,200 3,791,355,750 420,125,251 3,143,415,927 369,338,800 5,231,069,550 252,553,274 8,848,459,965 8,204,403,367 8,996,377,551 Postal Service. Fiscalyear 1921. Postal receipts Postal expenditures payable from postal receipts and grants from the Treasury Deficiency in the postal receipts, payable from the general fund Estim^ated, . Estimated, fiscal year 1922. fiscal year 1923. $463,491,274 $505,000,000 $546,714,000 593,619,732 553,172,270 568,223,666 1130,128,458 48,172,270 21,509,666 1 Exclusive of other payments from the general fund on account of the Postal Service araounting to $1,518,402, grant from the Treasury of $8,519,684 transferred to the civil-service retirement and disability fund, and $26,015,215 paid from prior postal balance^;. NOTE.—The deficiency for 1921, and the estimated deficiencies for 1922 and 1923 shownabove, are included in the general classification of ordiaary expenditures and estimated ordinary expenditures under the Post Office Department on pp. 154,157, and 159. respectively. The following statements exhibit financial transactions for the periods stated on the basis of cash receipts and cash expenditures: Receipts and expenditures for the jiscal years 1920 and 1921, and estimated receipts and expenditures for thefiscal years 1922 and 1928. [On t h e basis of daUy T r e a s u r y s t a t e m e n t s . ! Fiscal y e a r 1920. Fiscal y e a r 1921. Fiscal year 1922. Fiscal y e a r 1923. EECEIPTS. Ordinary: $322,902,650.39 Customs I n t e r n a l revenue— • I n c o m e a n d profits t a x e s . $3,944,949,287.75 MisceUaneous internal 1,460,082,286.91 revenue 5,405,031,574.6 MisceUaneous r e v e n u e 1,910,140.20 Sales of p u b h c l a n d s F e d e r a l ' reserve bank 2,703,893.63 "franchise t a x I n t e r e s t on foreign obhga3,751,433.43 tions R e p a y m e n t s of foreign 70,545,188.47 obhgations Sale of s u r p l u s w a r s u p 309, 272, 820,17 phes R e t i r e m e n t of c a p i t a l stock of G r a i n Corporation 350,000,000.00 5,664, 741.45 P a n a m a Canal 222, 782, 946.48 O t h e r miscellaneous 966,631,163. 83 Tot9,l o r d i n a r y r e c e i p t s . 5,694, 565,388.88 $308,564,39L00 $3,206,046,157.74 1,390,380,823.28 4,596,426,981.02 1,530,439.42 $330,000,000.00 $275,000,000.00 $1,715,000,000.00 . $2,110,000,000.00 1,104,500,000.00 • 3,214,500,000.00 8^,000,000.00 2,611,000,000.00 1,500,000.00 1,500,000.00 60,724,742.27 60,000,000.00 30,000,000.00 31,142,982.51 • 25,000,000.00 25,000,000.00 83,678,223.38 30,500,000. 00 30,500,000.00 183,692,848.69 141,200,000.00 100, 500,000.00 100,000,000.00 12,280,741.79 246,891, 610. 83 25,000,000.00 11,760,000.00 183,993,683. 00 7.000,000.00 13; 315,000. 00 195,367,750.00 o o H > 719, 941, 5cS8. 89 478,953,663. 00 404,182,750. 00 5,624, 932,960. 91 3,968,453,663. 00 3, 345,182,750. 00 o teJ c/2 EXPENDrrURES. Ordinary"(see details i n following table) P u b h c d e b t e x p e n d i t u r e s chargeable a g a i n s t o r d i n a r y receipts: S u l k i n g fund P u r c h a s e s of L i b e r t y b o n d s from foreign r e p a y m e n t s — R e d e m p t i o n s of b o n d s a n d n o t e s from e s t a t e t a x e s R e t i r e m e n t s from F e d e r a l reserve b a n k franchise t a x receipts T o t a l o r d i n a r y expenditxires (including d e b t redemptions charge a b l e a g a i n s t o r d i n a r y receipts) E x c e s s of receipts over e x p e n d i tures..'. E x c e s s of e x p e n d i t u r e s over receipts 6,403,343,841. 21 5,115, 927,689. 30 3,143,415,927.00 3,604, 980,166.00 261,100, 250.00 272,442,200. 00 283,838,800. 72,669,900. 00 73,939,300. 00 30,500,000.00 30,500,000. 3,141,050. 00 26, 348, 950. 00 25,000, 000. 00 25,000,000. 2,922,450.00 1,000,000.00 60, 000,000. 00 60, 724, 500. 00 78, 733,400. 00 422,113,000.00 387,942,200.00 369,338,800.00 6,482,077,241. 21 5, 538, 040,689.30 3,992,922, 366.00 3,512,754,727.00 o > i, 892,271.61 24,468,703.00 167,571,977.00 . O cn CO 154 REPORT OJST T H E F I N A N C E S . {Classified ordinary expenditures of the Government for the flscal years 1920 and 1921, and estimated ordinary expenditures • for the flscal years 1922 and [On t h e basis of daily T r e a s u r y staternents.] Fiscal y e a r 1920. Fiscal y e a r 1921. Fiscal y e a r 1922. $19,327,708. 72 Legislative e s t a b h s h m e n t •. 6,675,517. 58 Executive proper 13,586,024.42 State Department 312,183,133.74 Treasury Department "War D e n a r t m e n t 1,610, 587,380. 86 17,814,398.18 D e p a r t m e n t of J u s t i c e 50,049, 295.07 P o s t Office D e p a r t m e n t 736,021,456. 43 Navy Department Interior Department 279,244,660.87 D e p a r t m e n t of A g r i c u l t u r e 65,546, 293.14 D e p a r t m e n t of C o m m e r c e 30,010, 737. 75 D e p a r t m e n t of L a b o r 5,415,358.40 United States Veterans' Bureau United States Shipping B o a r d . 530,565,649.61 F e d e r a l control of t r a n s p o r t a tion systems a n d transporta1,036,672,157.53 t i o n act, 1920 W a r F i n a n c e Corporation 1228,472,186.61 <jrrain Corporation 3 350,328,494.70 O t h e r i n d e p e n d e n t offices a n d 59,469,305.17 commissions . 19,944,864.70 D i s t r i c t of C o l u m b i a 1,020,251,622.28 I n t e r e s t on p u b l i c d e b t $18,994,565.17 197,341.68 8,780,796.84 476,352,192.21 1,101,615,013. 32 17,206,418.03 135,359,108.17 650,373,835. 58 341, 769,318.59 119,837,759. 41 30, 828,761.55 8,502,509. 55 $15,984,446.00" 227,045. 00 11,406,032.00 169,871,163. 00 389,091,406. 00 16,825,568. 00 . 51,448,724. 00 478,850,000. 00 326,540,829.00 153,637,100.00 . 20,131,800.00 4,796,916.00 438,122,400. 00 73,911,081.00 Ordinary. Total Deduct unclassified ments, etc $16,265,215. 00 227,045.00 10,432,624.00 168, 997,160. 00 • 369,902,107.00 18,415,681.00 24,866,758.00 431, 754,000. 00 326,032,022. 00 173,197,530. 00 19,939,970.00 6,301,835.00 455,232,702.00 50,495,735.00 730,711,669.98 122,028,452.12 2 90,353,4n. 42 337,679,235.00 25,000,000.00 7,000,000.00 119,943,23L84 22,558,264.16 999,144,731.35 21,739,509.00 22,275,063.00 975,000,000.00 22,563,827.00 25,070,877.00 4 975,000,000.00 5,935,221,872.54 4,981,223,744.99 3,532,538,317.00 3,101,695,088.00 •4,399,847.00 922,593.14 5,930,822,025.54 11,365,714.01 4,980,301,15L 85 16,461,409.47 3,532,538,317.00 7,219,849.00 3,101,695,088.00 7,358,839.00 421,337,028.09 73,896,697.44 29,643,546.17 16,781,320.79 repay- Total P a n a m a Canal P u r c h a s e of o b h g a t i o n s of foreign G o v e r n m e n t s P u r c h a s e of F e d e r a l farm-loan bonds Increase of c o m p e n s a t i o n , a l l departments I n v e s t m e n t s of t r u s t funds: G o v e r n m e n t hfe i n s u r a n c e fund Civil-service r e t i r e m e n t fund a n d D i s t r i c t of Col u m b i a teachers' retirem e n t fund Total ordinary 130,723,268. 26 Fiscal y e a r 1923. (^) 10,132,493.69. 43,033.71 6,403,343,841.21 (;) 20,325,152..88 8,161,956.87 5,115,927,689.30 35,000,000.00 22,022,000.00 26,162,000.00 8,200,000.00 8,200,000.00 3,604,980,166.00 4 3,143,415,927.00 ^ Deduct excess of credits. * T h e $100,000,000 reduction in t h e capital stock of t h e United S t a t e s Grain Corporat i o n effected Aug. 20, 1920, is reflected in. a n i n c r e a s e by t h a t a n i o u n t in both receipts and •disbursements in t h e fiscal year 1921. » T h e reduction of $350,000,000 in t h e capital stock of t h e United S t a t e s Grain Corporation effected a t t h e close of t h e fiscal year 1920 is reflected in an i n c r e a s e by t h a t a m o u n t i n both receipts a n d d i s b u r s e m e n t s for t h e fiscal year 1920. * T h i s a m o u n t does n o t include $125,000,000 of accumulated i n t e r e s t on w a r savings •certificates, r e p r e s e n t i n g discount accrued on certificates of t h e Series of 1918 which m a t u r e J a n u a r y 1, 1923. 5 E x p e n d i t u r e s in 1920 and 1921 on a c c o u n t of increase of conipensation a r e included •under t h e various d e p a r t m e n t s and independent establishments. NoTK.—Because of legislation e s t a b l i s h i n g revolving funds and providing for t h e reimbursement of a p p r o p r i a t i o n s commented upon in t h e a n n u a l r e p o r t of t h e Secretary of t h e T r e a s u r y for t h e fiscal year 1919, p. 126 ff., t h e gross e x p e n d i t u r e s in t h e case of •some d e p a r t m e n t s and agencies, notably t h e W a r D e p a r t m e n t , the R a i l r o a d Administration, and t h e Shipping Board, have been considerably larger t h a n above s t a t e d . This s t a t e m e n t does n o t include e x p e n d i t u r e s on a c c o u n t of t h e P o s t a l Service, other t h a n ^salaries and.expenses of t h e P o s t Office D e p a r t m e n t in W a s h i n g t o n , postal deficiencies, and i t e m s a p p r o p r i a t e d by Congress payable from the general fund of t h e T r e a s u r y . Public debt expenditures and receipts, actual, in Jiscal year 192 i, and estimated for fiscal years 1922 and 1923. ' . [On the basis of daily Treasury statements.! Actual, fiscal year 1921. Estimated, fiscal year 1922. Estimated, fiscal year 1923. EXPENDITURES. Certificates of indebtedness: Loan and. tax : Pittman Act Special issues Victory notes Treasury (war) saviiigs securities: Series of 1918 AU other series Liberty bond retirements Retirement of Federalreserve bank notes and national-bank notes Old debt retirements Total public debt expenditures Public debt expenditures chargeable against ordinary receipts (as above): Sinking fund Purchases of Liberty bonds from foreign repayments Redemptions of bonds and notes from estate taxes Retirements from Federal reserve bank franchise tax receipts $2,485, 552, 500 43,500,000 24,000,000 332,439,450 160, 256,308|| 99,492,850 37,460,701 152,361 3,182, 854,170 $272,442,200 30,500,000 25,000,000 60,000,000 $261,100,250 73,939,300 26,348,950 60, 724,500 Other public debt expenditures $2,450,843, 500 160,000,000 32,854,450 1,250,000,000 $2,150,000,000 55,875,000 100,000,000 15,000,000 55, 500,000 115,000,000 100,000 1 610,000,000 10,000,000 55,500,000 55,000,000 100,000 4,179,297,950 5, 600,408,350 422,113,000 387,942,200 2, 760,741,170 3,791,355,750 2,663,933,350 O > O ^^ $283,838,800 30,500,000 25,000,000 30,000,000 H 369,338,800 5,231,069,550 RECEIPTS. Treasury, (war) savings securities . . ° Deposits to retire Federal reserve bank notes and national-bank notes.. New issues ol securities, including Treasury notes and certificates Excess of public-debt receipts over public-debt expenditures, exclusive of such expenditures chargeable against ordinary receipts, in fiscal year 1921, applied to public-debt expenditures in fiscal year 1922 26,587,421 40,090,415 2,799,147,486 75,000,000 130,000,000 3,481,271, 598 2,865,825, 322 3,686,271, 598 105,084,152 105,084,152 2,760,741,170 3,791,355,750 100,000,000 40,000,000 5,091,069,550 d 5,231,069,550 5,231,069,550 1 This amount includes $125,000,000 of accumulated interest on war savings certificates, representing discount accrtied on certificates of the series of 1918 which mature J a n . l , 1923 NOTE.—The expenditures on account of Treasury certificates of indebtedness and the receipts on account of new issues of securities, as shown in this statement, do not include Treasury certificates which are issued and retired mthin the same fiscal year. OT 156 REPORT ON THE FINANCES. Estiinated receipts and expenditures, fiscal year 1922. Receipts: > ' Crdinary— Customs $275, 000, 000Internal revenue— Income and pro'fits taxes $2,110, 000, 000 Miscellaneous 1,104, 500, 000 3, 214, 500, 00(> Miscellaneous— Sales of public lands 1, 500, 000 Federal reserve bank franchise tax_ 60, 000, 000 Interest on foreign obligations 25, 000,000 Repayments of foreign obligations— 30, 50O, 000 Sales of surplus war supplies 141, 200, 000 United States Grain Corporation—. 25, 000, 000 Panama Canal 11, TGO,. 000 Other miscellaneous 183, 993, 663 478, 953, 66a Total 1 3, 968, 453, 663Expenditures: Ordinary (see details on pp. 156-158)— Public debt expenditures chargeable against ordinary receipts— Sinking fund Purchases of Liberty bonds from- foreign repayments Redemptions of bonds and notes from ' estate taxes Retirements from Federal reserve bank franchise tax receipts 3, 604, 980,166272, 442, 200 30, 500,000 25, 000, 000 60, 000, 000 387,942,200' Total ordinary expenditures (including sinking fund and other debt expenditures chargeable against ordinary receipts) 3,992,922,366Excess of expenditures over receipts 24, 468,703- POSTAL SERVICE. The Post Office Department estimates that the postal revenues for the fiscat year 1922 will amount to $505,000,000, with expenditures for the Postal Servicefor the same period of $553,172,270, an estimated deficiency of $48,172,270. Classification of estimated ordinary expenditures, fiscal year 1922. Legislative establishment Executive office .i State Department Treasury Department: Proper Collecting the revenue Refunds, etc., customs and internal revenue Enforcement of narcotic and prohibition acts Public buildings : $15, 984,446227, 04511, 406,032: $52, 834, 825 48, 629,190 40, 279, 000 7, 500, 000 20, 628,148 169,871,16s: SECRETARY OE THE TREASURY. War Department: Proper Military EstablishmentRivers and harbors Miscellaneous war (civil) . Department of Justice Post Office Department proper.^ Postal deficiency 157 ^ $4, 645, 500 339,606,175 29, 84.9, 921 14,989,810 r- $389,091,406 16, 825, 568 $3, 276,454 48,172, 270 ; 51,448,724 Navy Department: Proper 2,160, 000 Naval Establishment, excluding building program 334, 238, 000 Navy building program 142, 452, 000 478,850,000 Interior Department proper Pensions Indians Department of Agriculture Department of Commerce Department of Labor Independent offices: United States Veterans' Bureau 1 United States Shipping Board United States Grain Corporation Federal control of transportation systems and transportation act, 1920 1Federal Power Commission : Housing Corporation : :State, War, and Navy Department Buildings Federar Board for Vocational Education Interdepartmental Social Hygiene Board Federal Trade Commission Employees' Compensation Commission Interstate Commerce Commission Railroad Labor Board 'General Accounting Office National Advisory Committee for Aeronautics— Rock Creek and Potomac Parkway CommissionSmithsonian Institution___I Alien Property Custodian Bureau of Efficiency . -Civil Service Commission Commission of Fine Arts Tariff Commission Temporary Government, West Indian Islands— Alaska relief funds and miscellaneous District of Columbia Panama Canal . 35, 005, 829 258, 400, 000 33,135, 000 326,540,829 153, 637,100 20,131, 800 4, 796,916 438,122,400 73, 911, 081 25, 000, 000 337, 679, 235 51, 375 1,076,700. 1, 510, 055 4, 756, 344 224, 500 943,500 2, 661,000 5,130, 578 448, 650 2, 089, 433 197, 720 100,000 740,790 388,520 122,350 586, 368 . 9, 886 298, 300 343, 440 60, 000 896,452,225 22, 275, 063 7, 219,849 158 ' REPORT ON THE FINANCES. Miscellaneous: United States Government life insurance fund investments— Civil-service retirement and disability fund investments District of Columbia teachers' retirement fund investmentsIncrease of compensation, all departments Interest on the public debt $22,022, 000^' 8,000, 000 200, 000 35,000, 000975, 000; 000 Total estimated ordinary expenditures 3, 604, 980,166 Estimated receipts and expenditures, fiscal year 1923. Receipts: Ordinary— Customs $330, 000, 000Internal revenue— Income and profits taxes $1, 715,000,000 Miscellane'ous : 896, 000, 000 -^ 2, 611, 000, 000= Miscellaneous revenue— Sales of public lands 1, 500, 0(X) Federal reserve bank franchise tax_ 30,000, 000' Interest on foreign obligations 25, 000, 000 Repayments of foreign obligations30, 500, 000 Sale of surplus war supplies 100, 500, 000 United States Grain Corporation— 7, 000, 000 Panama Canal —— 13, 315, 000 Other miscellaneous 196, 367, 750 404,182, 750Total ordinary receipts - ^ Expenditures: Ordinary (see details on pp. 159, 160) Public debt expenditures chargeable against ordinary receipts— Sinking fund Purchases of Liberty bonds from foreign repayments Redemptions of bonds and notes from estate taxes Retirements from Federal reserve bank franchise tax receipts 3, 345,182,750' ' 3,143, 415, 927" - 283, 838, 800 30, 500, 000 25, 000, 000 30, 000, 000 : 369, 338, 800^ Total ordinary expenditures (including sinking fund and other debt redemptions chargeable against ordinary receipts) ^ 3, 512, 754, 727 Excess of expenditures over receipts.- - 167, 571, 977 1 This amount does not include $125,000,000 of accumulated interest on war-savings certificates, representing discount accrued on cei'tificates of the series of 1918, which matureJan. 1, 1923. SECRETARY OE T H E TREASURY. POSTAL 159 SERVICE. T h e Post Office D e p a r t m e n t estimates t h a t the postal revenues for the fiscal y e a r 1923 wiU a m o u n t to $546,714,000, w i t h expenditures for t h e Postal Service for the same period of $568,223,666, a n estimated deficiency of $21,509,666. Classiflcation of estvmated o r d m a r y expenditures, flscal year 1923. Legislative establishment Executive office State D e p a r t m e n t ^ Treasury Department: Proper Collecting the revenue Refunds, etc., customs and internal revenue Enforcement of narcotic and prohibition acts Public buildings War Department: Proper — MilitaiT Establishment Rivers and harbors — Miscellaneous w a r (civil) $16, 265, 215 227, 045 10, 432, 624 $52, 302, 404 54, 549,190 35,251,700 10, 000, 000 16, 893, 866 ^ — — Department of Justice Post Office D e p a r t m e n t : Proper Postal deficiency 3,492,757 302, 473, 500 46, 045, 400 17,890,450 • 168,997,160 369,902,107 18, 415,681 3, 357, 092 21, 509, 666 24,866,758 ' Navy D e p a r t m e n t : Proper 2,113,000 Naval Establishment, excluding building program— 330, 443,000 Navy building program 99,198, 000 431,754,000 Interior D e p a r t m e n t : Proper Pensions _ — Indians '. 41, 799, 022 252,350,000 . 31, 883, 000 —:— 326, 032, 022 173,197, 530 ^19,939,970 6,301, 835 Department of Agriculture D e p a r t m e n t of Commerce Department of Labor Independent offices: United States Veterans' B u r e a u . 455, 232, 702 United States Shipping Board 50,495, 735 United States Grain Corporation 7, 000, 000 Housing Corporation 1, 267,435 F e d e r a l Board for Vocational Education 5, 529, 244 Federal T r a d e Commission ____. .__ 948,500 Railroad Labor Board 398, 650 Employees' Compensation Commission 2,798, OCK) I n t e r s t a t e Commerce Commission 4,995, 240 State, War, and Navy Department buildings 1, 464, 420 General Accounting Office 2, 424, 946 160 REPORT ON T H E FINANCES. Independent offices—Continued. F e d e r a l Power Commission National Advisory Committee for Aeronautics Rock Creek and Potomac P a r k w a y Commission. Smithsonian Institution Alien Property Custodian ? Board of Mediation and Conciliation B u r e a u of Efficiency Civil Service Commission Commission of F i n e A r t s Tariff Commission Alaska relief f u n d s — $72, 500 246, 000 100, 000 728, 931 390,480 25, 000 170, 500 595, 595 9, 886 373, 500 25, 000 $535, 292,264 25, 070, 877 7, 358,839 District of Columbia ., P a n a m a Canal , ^ Miscellaneous: United States Government life insurance fund, i n v e s t m e n t s . Civil-Service retirement and disability fund, investments District of Columbia teachers' retirement fund, i n v e s t m e n t s . I n t e r e s t on the.public debt^ Total estimated ordinary expenditures 26, 162,000 8, 000,000 200, 000 ^ 975, 000, 000 ^3,143,415,927 Estimated internal revenue receipts under revenue act approved Nov. 23, 1921. Source of revenue. Income tax: Individual... Corporation. Profits tax Back taxes Total income and profits tax MisceUaneous internal revenue (see details below).. Total. Fiscal year 1922. Fiscal year 1923. $850,000,000 430,000,000 600,000,000 230,000,000 $770,000,000 495,000,000 150,000,000 300,000,000 $760,000,000 570,000,000 2,110,000,000 1,104,500,000 1,715,000,000 896,000,000 1,650,000,000 900,100,000 3,214,500,000 2,611,000,000 2,550,100,000 Calendar year 1923. 320,000,000 MisceUaneous internal revenue: 150,000,000 150,000,000 150,000,000 Estate tax 135,000,000 Transportation 27,000,000 27, 000,000 27,000,000 Telegraph and telephone. 10, 000,000 Insurance 60, 000,000 ""65," 665," 666 "60,'656," 665' Alcoholic spirits, etc Beverages20,000,000 000,000 18,000,000 18, Cereal beverages 22, 000,000 Fruit juices and soft drinks. 11,000,000 11,000,000 1,000,000 Fountain sirups , 2,000,000 2,000,000 500,000 Carbonic acid gas 1,000,000 1,000,000 250, 000,000 Tobacco 250,000,000 250,000,000 95, 000,000 Admissions and dues 80,000,000 80,000,000 Automobiles, trucks, parts, etc.. 110,000,000 110,000,000 110,000,000 Musical instruments, etc •5, 000,000 Sporting goods, etc 1,500,000 400,000 Chewing gum , 800,000 Cameras 800,000 800,000 Photographic fihns— 750,000 750,000 750,000 Sold 000,000 Leased (moving pictures)... 000,000 12,000,000 12,000,000 Candy , 500,000 3,500,000 3,500,000 Firearms, sheUs, etc 30,000 30,000 30,000 Knives, dirks, etc. 150,000 Electric fans 100,000 Thermos bottles 1 This a m o u n t does not include $125,000,000 of accumulated i n t e r e s t ' on war savings certificates, representing discount accrued on certificates of the series of 1918, which mature J a n . 1, 1928. 161 SECRETARY OF THE TREAStJRY. Estimated internal revenue receipts under revenue act approved Nov. 23, 1921Con tinued. Fiscal year 1922. Source of revenue. Miscellaneous internal revenue—Continued. Smokers' articles Automatic vending machines Liveries, hunting and shooting garments, and riding habits Fur articles Yachts and motor boats (sale) Toilet soaps,, etc Art works , " Luxuriiesi' i , Jewelry,, etc' , Perfumes and cosmetics Proprietary medicines Corporation capital stock Stamp t a x e s Parcel post , I Issues and conveyances, stocks Capital stock transfers Sale of produce or exchange Miscellaneous taxes Total. Fiscal year 1923. Calendar year 1923. $150,000 100,000 $150,000 100,000 $150,000 100,000 350,000 4,500,000 500,000 1,000,000 700,000 11,000,000 20,000,000 1,500,000 1,500,000 75,000,000 350,000 350,000 500,000 500,000 400,000 3,000,000 24,000,000 400,000 4,000,000 25,000,000 75,000,000 75,000,000 10,000,000 33,000,000 8,000,000 7,500,000 19,970,000 33,000,000 6,000,000 7,500,000 19,920,000 33,000,000 6,000,000 7,500,000 20,020,000 1,104,500,000 896,000,000 900,100,000 Estimates of miscellaneous receipts for the fiscal years 1922 and 1923, by various departments and establishments of the Government. 1922 Legislative establishment. :.......-... State Department Treasury Bepartment. War Department (iricludes sale of surplus war suppUes).. Department of Justice Post Oflice Department Navy Department Interior Department.. Department of Agriculture Department of Commerce Department.of Labor. Uni ted'[St;ates Veterans' Bureaii. i . . . . . . 1923 $573,400 10,794,692 43,915,081 $578,550 9,704,000 51,816,158 155,483,464 7,271,900 113,756,464 7,846,900 60,000 8,489,000 37,191,499 60,000 5,201,000 36,888,490 6,532,800 .6,837,800 3,514,512 4,044,600 5,548,801 5,326,864 27,717,000 33,170,000 1922 Federal control of transportation systems and transpor. tation act 1920 $138,000 Grain Corporation 25,000,000 Other independent oflBces and commissions ^..'... . 3,710,834 District of Columbia.. . 17,256,881 Panama Canal :. 11,760,000 Federal reserve bank franchise tax receipts...:.....:..:.. 60,000,000 Interest on foreign obligations 25,000,000 Repayments of foreign obhgations 30,500,000 Total estimated misceUaneous receipts 478,953,663 1923 $7,000,000 ..13,557,408 18,075,315 13,315,000 30,(300,000 % 000,000 >30,500,000 404,,182,750 E S T I M A T E S FOR 1 9 2 3 A N D A P P R O P R I A T I O N S FOR 1 9 2 2 . Comparison of the estimates for 1923 with the appropriations for 1922 shows an increase in the 1923 estimates of $27,067,631.52, as exhibited in the table following, without, however, including in the figures for 1922 the railroad guaranty, repayments under revolving fund appropriations, repayments to appropriations, and appropriations of unexpended balances, the effect of which on the appropriations for that year is shown on pages 47 to 49 of the report for the fiscal year 1920. 70073—FI 1921 11 162 REPORT ON. THE FINANCES. Statement of estimates of appropriations for 1923 compa/red ivith appropriations for 1922. [Excluding Postal Service payable from the postal revenue.) Department, etc. lies^gislative Executive: * ^ Executive proper .,. Alien Property Custodiari Tarifi Commission -.-., Bureau of Efficiericy " Civil Service Commission ' ' Miscellaneous..'../..'.•.'..'.'." .• Department of State: Department of State proper Foreign intercourse TreasuryDepartment: Treasury Department, exclusive of public buildings construction .' Public buil dings construction War Department: War Department proper Mihtary Establishment— (Estimates for MiUtary Establishment for 1922, $814,787,641.26; appropriations for 1921, $419,881,986.37.) Army , Military Academy. National Guard Fortifications - Arsenals ' MiUtary posts and miscellaneous , - Rivers arid harbors Miscellaneous war, civil items Navv Department: I^avy Department proper Naval EstabUshment— (Estimates for Naval Establishment for 1922, $692,713,427.47; appropriations for 1921, $437,302,564.40.) Naval Establishment, exclusive of building program Navy building program Department ofthe Interior: Department of the Interior, exclusive of Indians and pensions Pensions , Indians Post Office Department: Post Office Department, exclusive of Postal Service Department of Agriculture Department of Commerce Department of Labor — Department of J ustice , Independent offices: . Smithsonian Institution and National Museum Interstate Commerce Commission Federal Trade Commission United States Shipping Board , 1 Housing Corporation...: .... General Accounting Office. Interdepartmental Social Hygiene B o a r d . . . . . Federal Board for Vocational Education . National Advisory Committee for Aeronautics. Board of Mediation and Conciliation United States Veterans' Bureau Railroad Labor Board Federal Power Commission.-: , Pilgrim Tercentenary Commission — ^ . Emplovees' Compensation Commission Rock Creek and Potomac Parkway Commission — State, War, and Navy Department Bmldings. Indigent in Alaska relief fund Increase, 1923 1922 appropria-. estimates 1923 estimates, over including including perma- tions, 1922 appropripermanent nent annual. ations (-f-); deannual. crease (—). $16,493,845. 95 $17,196,203.39 - . $702,357.44- 228,880.00 376,920.00 375,000. 00 175,000.00 611,755.00 10,000.00 228,880.00 375,000.00 300,000.00 125,000.00 604,975.00 398,440.00 1,920.00 75,000.00 50,000.00 6,780.00. 388,440.00 1,003,460.00 9,577,441.16 987,960.00 9,649,809. 09 156,194,097.82 .5,471,800.00 141,982,310.00 22,710,631.29 -{• - 15,500.00 72,367.93 3,572,865.00 4,762,990. .00 -f 14,211,787.82 - 17,238,83L29 — 1,190,125.00 261,233,383.00 2,149,644.80 30,000,000.00 7,000,000.00 1,028,000.00 4,586,056.67 40,599,860.00 10,331,114.00 301,202,170.00 2,357,259.80 25,554,100.00 8,038,017.00 '2,045,000.00 2,172,561.67 29,766,600.00 12,637,363.94 - 39,968,787.00 207,615.00 -I- 4,445,900.00 - 1,038,017.00 - 1,017,000.00 + 2,413,495.00 + 10,833,260.00 - 2,306,249.94 2,172,910.00 2,341,660. 00 -. 168,750.00 •338,779,457.13 85,000,000.00 333,506,419.37 90,000,000.00 -f- 5,273,087.76 5,000,000.00 33,330,865.00 252,350,000.00 32,558,077.00 46,400,205.00 265,-500,000.00 33,617,554.67 - 13,069,340.00 - 13,150,000.00 959,477.67 3,412,000.00 46,860,668.00 20,675,326.25 6,564,632.00 18,505,556.00 3,241,705:55 48,349,559.00 17,265,060.00 4,904,835.75 15,779,238.50 170,294.45 1,488,891.00 3,410,266.25 1,659,796.25 2,726,317.50 741,120.00 5,194,970.00 955,000.00 50,501,500.00 1,080,425.00 2,468,601.00 736,620.00 4,893,100.00 955,000.00 73,959,000.00 1,110,000.00 2,019,550.00 225,000.00 5,438,000.00 200,000.00 -f 4,500.00 + 301,870.00 - 23,457,500.00 29,575.00 + 449,051.00 225,000.00 + 494,000.00 + 50,000.00 + 25,000.00 -f 155,348,082.00 + 30,000.00 -. 100,000.00 5,9:32,000.00 :' 250,000.00 25,000.00 385,921,702.00 400,000.00 230,573,620.00 370,000.00 100,000.00 2,800,940.00 1,944,940.00 -f 856,000.00 100,000.00 1,475,270.00 25,000.00 200,000.00 1,654,710.00 25,000.00 - 100,000.00 179,440.00 SECRETARY OE THE TREASURY. 163 Statement of estimates of appropriations for 1923, etc.—Continued. Department, etc. District of Columbia Interest on the public debt Increase of compensation, estimated. Panama Canal Sinking fund Other debt redemptions '.. Total. 1922 appropria1923 estimates, including including perma- tions, permanent nent annual. annual. $27,195,476.75 1975,000,000.00 Increase, 1923 estimates over 1922 appropriations (-}-); decrease (—). + $4,635,763.76 4,241,174.00 283,838,800.00 85,500,000.00 $22,559,712.99 975,000,000.00 35,000,000.00 9,000,000.00 272,442,200.00 115,500,000.00 13,224,875,593.53 3,197,807,962.01 -\- 27,067,631.52 4- 35,000,000.00 4,758,826.00 11,396,600.00 30,000,000.00 * This amount does n o t include $125,000,000 of accumulated interest on w a r savings certificates, representing discount accrued on certificates of t h e series of 1918, which mat u r e J a n . 1, 1923. Exhibit of appropriations for 1922. Appropriations made for the flscal year 1922 and for prior years during the third session of the Sixty-sixth Congress and first session Sixty-seventh Congress to November 1, 1921, including revised estimated permanent and indefinite appropriations, and appropriations for the Postal Service payable from postal revenues $4,125, 511,933.94 Deduct: Postal Service for 1922 payable from the postal revenues^—^_ $574, 092, 552. 00 Postal deficiencies of prior years, payable from postal revenues 127, 331, 902. 76 Deficiencies and supplementals for prior years — 226, 279, 517.17 927, 703, 971. 93 Total appropriations for 1922, exclusive of deficiencies and Postal Service payable from postal revenues, ,and excluding also the railroad guaranty, repayments under revolving fund appropriations, repayments to appropriations, and appropriations of unexpended balances ___— 3,197,807,962.01 Attention is respectfully invited to the attached abstracts of the ^annual reports of the various bureaus and divisions of the Treasury Department and to the tables and exhibits accompanying the report on the finances. o A. W. MELLON, Secretary. To tlie SPEAKER OF THE HOUSE OF EEPRESENTATIVES. EXHIBITS ACCOMPAJsYING THE REPORT ON THE FINANCES. 165-7 EXHIBITS. EXHIBIT 1. CERTIFICATES OF INDEBTEDNESS: TOTAL ISSUES AND AMOUNT ISSUED THROUGH EACH F E D E R A L R E S E R V E BANK AND TREASURY DEPARTMENT. (A) FROM JULY 1, 1920, TO OCT. 31, 1921. F e d e r a l reserve d i s t r i c t . A u t h o r i z i n g act a n d series. D a t e of issue. D a t e of maturity. Rate. Total amount. Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. Ui L o a n certificates of 1921: S e p t . 24, 1917, as a m e n d e d A p r . 4,1918, a n d M a r . 3, 1919— Series B-1921 Series C-1921.. Series D-1921 Series E-1921 Series F-1921 Series G-1921'. "... Series H - 1 9 2 1 . . . Q J u l y 15,1920 A u g . 16,1920 N o v . 15,1920 J a n . 15,1921 do F e b . 15,1921 A p r . 15,1921 Jan. Aug. May Apr. Oct. July Oct. 15,1921 16,1921 16,1921 15,1921 15,1921 15,1921 15,1921 ft Total L o a n certificates of 1922: S e p t . 24, 1917, as a m e n d e d A p r . 4,1918, a n d M a r . 3,1919— * Series A-1922 • Series B-1922 M a y 16,1921 A u g . 1,1921 F e b . 16,1922 A u g . 1,1922 5§ 5i Total Grand total I s s u e d i n a n t i c i p a t i o n of i n c o m e a n d profits t a x e s , 1921: S e p t . 24,1917, as a m e n d e d — Series TM2-1921 Series TM3-1921. Series TS-1921 Series TM4-1921 Series TJ2-1921 Series TD-1921 Series TS2-1921 Total J u l y 15,1920 Sept. 15,1920 do.. . . . . . Oct. 15,1920 D e c . 15,1920 do M a r . 15,1921 M a r . 15,1921 do S e p t . 15,1921 M a r . 15,1921 J u n e 15,1921 D e c . 15,1921 S e p t . 15,1921 6 6 5i $126,783,500 157,654,500 232,124,000 118,660,000 192,026,500 132,886,500 190,511,500 $8,852,000 14,042,000 18,851,000 591,500 24,524,000 11,402,000 14,343,500 $55,808,500 57,704,500 83,515,500 61,019,000 77,043,000 49,451,500 74,067,000 $9,742,000 12,426,000 19,006,500 5,160,500 18,903,000 10,945,000 19,047,000 $7,990,000 15,0,57,500 31,350,000 7,559,000 16,841,000 12,221,000 16,125,000 $1,550,000 5,567,000 7,106,500 3,830,500 5,009,000 ^ 4,222,000 6,146,500 $1,485,000 4,262,500 2,363,500 1 .540 000 3,258,500 2,398,500 2,809,000 •1,150,646,500 92,606,000 458,609,000 95,230,000 107,143,500 33,431,500 18,117,000 256,170,000 259,471,500 21,208,000 21,068,500 99,954,000 99,622,500 25,757,500 30,336,500 23,300,000 19,370,000 7,615,000 7,865,000 515,641,500 42,276,500 199,576,500 56,094,000 42,670,000 15,480,000 10,522,000 1,666,288,000 134,882,500 658,185,500 151,324,000 149,813,500 48,911,500 28 6r{9 000 3,786,500 5,424,000 21,329,500 10,059,000 10,455,000 35,035,000 12,912,000 34,583,000 60,233,500 181,370,500 40,566,500 93,616,000 173,291,000 85,721,500 4,508,000 6,138,500 26,936,000 13,822,500 6,681,500 38,466,500 1.0,434,000 6,164,500 9,831,000 29,205,000 ^ 14,393,000 28,550,000 39,700,000 23,634,000 2,195,000 1,884,000 9,138,500 4,204,000 3,849,500 14,044,500 6,291,000 1,726,000 1 092 500 4 537 500 2' 227 500 2! 570; 500 3,757,000 2 647 500 99,001,000 669,382,000 106,987,000 151,477,500 41,606,500 18,558,500 74,278,000 106,626,500 341,969,500' 124,252,500 188,123,000 401,557,500 193,302,000 1,430,109,000 3 572 500 6 Q4Q .500 H > K! O ^^ W \^ .> w d CO Certificates of indebtedness: Total issues and'amount issued through each Federal reserve banh and Treasury Department—Continued. (A) FROM JULY 1, 1920, TO OCT. 31, 1921—Continued. F e d e r a l reserve d i s t r i c t . A u t h o r i z i n g act a n d series. D a t e of issue. D a t e of maturity. Rate. Total amount. Boston. Issued i n a n t i c i p a t i o n of i n c o m e a n d profits t a x e s , 1922: S e p t . 24, 1917, as a m e n d e d — ' Series TM-1922 Series TJ-1922 Series TM2-1922 Series TS-1922 Series TM3-1922 . ... M a r . 15,1921 J u n e 15,1921 A u g . 1,1921 S e p t . 15,1921 .do. New York. Philadelphia. Cleveland. Richmond. $124,187, 500 137,155, 500 47, 263, 500 80, 057, 500 48, 422, 500 ' $40, 346,000 25, 333, 500 9, 033, 500 12, 081, 500 8,191,500 $28, 341, 000 39, 225, 000 11,295,000 13, 320, 000 10,100, 000 $10,149, 500 8, 526,000 3, 746,000 4,665,000 2, 550,500 $2, 386,500 3, 850,000 1, 812, 500 1,617, 500 2, 793, 500 94,986,000 102, 281,000 29, 637,000 12, 460,000 Atlanta. $288,501,000 314,184,000 116,891,000 182, 871,000 124, 572,000 $22,066,000 21, 070,000 9,101, 500 10, 921, 500 8,692,000 Total 1,027,019, 000 71, 851, 000 Grand total...' 2, 457,128,000 170,852,000 1,106, 468, 500 201, 973, 000 253, 758, 500 71, 243, 500 31, 018, 500 2-4 5,551,600,000 421,000, 000 3, 385, 000, 000 373,000, 000 730,000,000 56,000,000 12, 000, 000 6 32,854,450 Special s h o r t - t e r m issues: S e p t . 24,1917, as a m e n d e d — A p r . 4,1918, a n d M a r . 3,1919. 0) Special issue ( W a r F i n a n c e Corporation) S e p t . 21,1920 Mar. June Mar. Sept. Mar. 15,1922 15,1922 15,1922 15,1922 15,1922 S e p t . 22,1921 5f II 437,086, 500 ^ o H O ', Federal reserve d i s t r i c t . A u t h o r i z i n g a c t a n d series. D a t e of issue. D a t e of maturity. Rate. Chicago. L o a n certificates of 1921: S e p t . 24, 1917, as a m e n d e d A p r . 4, 1918, a n d Mar. 3, 1919— Series B-1921 Series C-1921 Series D-1921 Series E-1921 Series F-1921 Series G-1921 Series H-1921 Total J u l y 15,1920 A u g . 16,1920 N o v . 15,1920 J a n . 15,1921 do F e b . 15,1921 A p r . 15,1921 Jan. Aug. May Apr. Oct. July Oct. 15,1921 16,1921 16,1921 15,1921 15,1921 15,1921 15,1921 -1 St. Louis. Minneapolis. K a n s a s C i t y . DaUas. San Francisco. Treasury Department. $10,044,500 20,250,500 27,264,500 16,445,000 18,764,500 16,526,500 22,932,000 $3,702,500 6,285,500 9,576,500 4,981,500 5,760,500 6,511,500 8,512,000 $721,500 2,093,000 4,875,000 2,817,000 4,660; 000 . 2,650,000 5,190,000 85,795,000 6,000,000 7,118,000 3,524,000 6,564,000 4,456,500 6,200,000 $1,192,500 2,544,000 3,492,000 2,197,000 1,424,000 2,552,000 2,764,500 $7,900,000 11,422,000 17,605,000 8,995,000 9,275,000 9,550,000' 12,375,000 $12,000,000 132,227,500 45,330,000 23,006,500 39,657,500 • 16,166,000 77,122,000 12,000,000 1 Various. a Ul L o a n certificates of 1922: S e p t . 24, 1917, a s a m e n d e d A p r 4,1918, a n d M a r . 3,1919— Series A-1922 Series B-1922 M a y 16,1921 A u g . 1,1921 Feto. 16,1922 A u g . 1,1922 29,989,000 26,127,500 5^ 5^ Total Grand total Issued i n a n t i c i p a t i o n of i n c o m e a n d profits t a x e s , 1921: S e p t . 24,1917, a s a m e n d e d — Series TM2-1921-. Series T M 3 - 1 9 2 1 . . . Series TS-1921 Series T M 4 - 1 9 2 1 . . . .. Series TJ2-1921 Series T D - 1 9 2 1 Series TS2-1921 Total I s s u e d i n a n t i c i p a t i o n of income a n d profits t a x e s , 1922: S e p t . 24,1917, a s a m e n d e d — Series TM-1922 Series TJ-1922 Series T M 2 - 1 9 2 2 . . . Series TS-1922 Series TM3-1922. . J u l y 15,1920 S e p t . 15,1920 do O c t . 15,1920 Dec. 15,1920 . . do M a r . 15,1921 M a r . 15,1921 J u n e 15,1921 A u g . 1,1921 S e p t . 15,1921 do M a r . 15,1921 do S e p t . 15,1921 M a r . 15,1921 J u n e 15,1921 D e c . 15,1921 S e p t . 15,1921 Mar. June Mar. Sept. Mar. 15,1922 15,1922 15,1922 15,1922 15,1922 5| 5| 6 6 5^ ll ll . 5 Total.... * Grand total Special s h o r t - t e r m issues: S e p t . 24,1917, a s a m e n d e d — A p r i l 4,1918, a n d Mar. 3,1919. Special issue ( W a r F i n a n c e Corporation) S e p t . 21,1920 0) S e p t . 22,1921 2-4 • 6,990,000 7,709,000 10,797,500^ 9,233,500 8,375,000 9,883,500 4,071,500 5,289,500 14,540,000 16,016,500 56,116,500 20,031,000 14,699,000 18,258,500 9,361,000 30,556,500 188,344,000 65,361,000 37,705,500 .57,916,000 25,527,000 107," 678,500 8,177,000 9,330,500 24,459,500 15,234,000 16,522,000 37,645)000 21,879,500 2,300,000 1,046,500 9,900,500 4,621,000 6,153,000 14,703,500 4,705,000 1,032,500 1,864,500 3,986,500 2,050,000 2,600,000 6,625,000 3,166,000 2,210,500 1,686,500 9,313,500 4,744,500 3,499,500 11,303,500 4,850,500 495,000 1,945,000 2,692,500 3,i)08,500 1,426,000 3,606,500 2,546,000 7,100,000 6,150,000 19,100,000 9,322,000 12,200,000 23,380,000 14,515,000 133,247,500 43,429,500 21,324,500 37,608,500 15,719,500 91,767,000 20,536,500 33,774,500 17,636,000 26,778,500 15,856,000 8,574,000 12,701,500 3,695,000 6,145, 500 3,035,500 4,068,500 5,462,500 2,689,000 3,500,000 3,420,000 9,149,500 9,477,500 2,516,500 6,705,000 5,632,000 2,396,000 4,708,000 2,489,000 3,979,000 5,278,500 16,300,000 12,900,000 5,613,500 13,100,000 10,600,000 ~ 114, 581,500 34,151, 500 • 19,140,000 33,480,500 18, 850,500 58,513, 500 247,829,000 77,581,000 40,464,500 71,089,000 34,570,000 150, 280, 500 301,000,000 39,000,000 7,000,000 6,000,000 13,000,000 171,100,000 12,000,000 w f o > O W I > 37,500,000 32,854,450 6 1 Various. Ul cl Certificatei of indebtedness: Total issues and amount issued through each Federal reserve banh and Treasury Department—Continued. (B) RECAPITULATION. FROM JULY 1,1920, TO OCT. 31,1921., Total amount. Issues. Loan certificates.. Tax certificates Special short-term certificates... .. Special issue (War Finance Corporation) ; Total Loan certificates.. . Tax certificates Special short-term certificates Special issue (War Finance Corporation) . : Total New York. Philadelphia. Cleveland. Richmond. Atlanta. $1,666,.288,000 2,457,128,000 5,551,600,000 32,854,450 $134,882,500 170,852,000 421,000,000 $658,185,500 1,106,468,500 3,385,000,000 $151,324,000 201,973,000 373,000,000 $149,813,500 253,758,500 730,000,000 $48,911,500 71,243,500 56,000,000 $28,639,000 31,018,500 12,000,000 9,707,870,450 726,734,500 5,149,654,000 726,297,000 1,133,572,000 176,155,000 71,657,500 Minneapohs. Kansas City. Chicago. Issues. Boston. ' St. Louis. Dallas. San Francisco. Treasury. $188,344,000 247,829,000 301,000,000 $65,361,000 77,581,000 39,000,000 $37,705,'500 40,464,500 7,000,000 $57,916,000 71,089,000 6,000,000 $25,527,000 34,570,000 13,000,000 $107,678,500 150,280,500 171,100,000 $12,000,000 737,173,000 181,942,000' 85,170,000 135,005,000 73,097,000 429,059,000 82,354,450 37,500,000 32,854,^450 (C) RECAPITULATION. FROM APR. 6, 1917, TO OCT. 31, Total amount. Issues. Loan certificates: In anticipation of the first Liberty loan In anticipation of the second Liberty loan In anticipation of the third Liberty loan In anticipation of the fourth Liberty loan... In anticipation of the Victory Liberty loan Series 1920 . : . . . Series 1921 • Series 1922..1 Total loan certificates . $868,205,000.00 2,320,493,000.00 3,012,085,500.00 4,659,820,000.00 6,157,589,500.00 . . 2,360,044,500.00 1,327,250,500.00 515,641,500.00 21,221,129,500.00 New York. $57,367,000 132,044,000 214,417,000 381,152,500 475,792,500 188,175,500 105,076,000 42,276,500 $460,462,000 1,467,543,000 1,255,308,000 1,680,989,000 2,255,145,000. 959,162,500 539,979,500 199,576,500 1,596,301,000 8,818,165,500 H O W > o 1921. Boston. o Philadelphia. Cleveland. Richmond. Atlanta. $43,400,000 89,132,000 196,500,000 316,020,000 420,334,500 145,544,500 100,530,000 56,094,000 $58,900,000 182,513,000 238,033,500 440,569,000 554,761,500 174,478,500 121,767,500 42,670,000 $13,703,000 40,014,000 75,829,500 117,983,500 187,497,000 48,864,000 35,813,500 15,480,000 $13,305,000 32,135,000 79,573,000 114,857,000 143,311,500 72,428,000 21,098,500 10,522,000 1,367,555,000 1,813,693,000 535,184,500 487,230,000 Ul T a x certificates: In anticipation In anticipation I n anticipation In anticipation In anticipation of I n c o m e a n d profits t a x e s , 1918 of i n c o m e a n d profits t a x e s , 1919 of i n c o m e a n d profits t a x e s , 1920 of i n c o m e a n d profits t a x e s , 1 9 2 1 . . . . of i n c o m e a n d profits t a x e s , 1922 T o t a l t a x certificates Special issues t o secure F e d e r a l r e s e r v e b a n k n o t e s . Special issues p a y a b l e i n foreign c u r r e n c y Special s h o r t - t e r m issues Special is'^nft ( W a r Finahcp. C o r p o r a t i o n ) , G r a n d t o t a l , a l l issues 1,624,403,500.00 3,354,787,500.00 3,078,030,000.00 1,873,996,500.00 1,027,019,000.00 83,260,000 256,911,500 187,623,500 127,678,000 71,851,000 831,473,000 1,451,852,000 1,358,566,000 822,993,500 437,086,500 95,537,000 141,001,500 191,939,500 135,318,500 94,986,000 285,452,500 .435,440,500 246,367,000 194,030,500 102,281,000 20,822,000 92,519,000 64,260,500 54,652,000 29,637,000 13,006,000 71,4i4,000 79,119,500 25,631^,000 12,460,000 10,958,236,500.00 727,324,000 4,901,971,000 658,782,500 1,263,571,500. 261,890,500 201,638,500 259,375,000.00 112,091,700.00 18,694,090,658. 53 32,854,450.00 21,436,000 59,276,000 30,280,000 23,299,000 .12,260,000 15,664,000 721,000,000 11,699,500,000 514,000,000 1,454,000,000 179,000,000 45,000,000 51,277,777,808. 53 3,066,061,000 25,478,912,500 2,570,617,500 4,554,563,500 988,335,000 749,532,500 Chicago. St. Louis. Minneapolis. Kansas City. Dallas. Ul o Issues. L o a n certificates: I n anticipation In anticipation In anticipation I n anticipation In anticipation Series 1920 Series 1921 Series 1922 of t h e first L i b e r t y l o a n of t h e second L i b e r t y l o a n . . of t h e t h i r d L i b e r t y l o a n of t h e f o u r t h L i b e r t y l o a n . . . of t h e V i c t o r y L i b e r t y l o a n . . .• T o t a l l o a n certificates.. T a x certificates: I n anticipation I n anticipation • I n anticipation I n anticipation In anticipation of i n c o m e of i n c o m e of i n c o m e of i n c o m e of i n c o m e and and and and and profits profits profits profits profits taxes, taxes, taxes, taxes, taxes, 1918. 1919.. 1920.. 1921.. 1922.. T o t a l t a x certificates.. Special issues t o secure F e d e r a l reserve b a n k n o t e s . Special issues p a y a b l e i n foreign c u r r e n c y . : , Special short t e r m issues .' Special issue ( W a r F i n a n c e C o r p o r a t i o n ) G r a n d t o t a l , all issues.. $77,693,000 138,597,000 325,355,000 663,204,000 953,415,500 278,575,000 157,359,500 56,116,500 $32,745,000 45,700,000 133,584,500 186,963,000 245,288,000 84,738,000 50,955,000 20,031,000 $14,600,000 29j471,000 89,350,000 127,560,000 218,880,500 73,113,000 25,221,000 14,699,000 $30,300,000 38,039,000 128,524,500 176,866,000 187,745,000 81,875,500 44,845,000 18,258,500 $18,225,000 39,347,000 90,925,000 83,320-, 000 101,546,000 77,638,000 18,733,000 9,361,000 2,650,315,500 800,004,500 592,894,500 706,453,500 439,095,000 162,934,000 463,807,000 395,437, 500 182,606,500 114,581,500 1,319,366,500 39,612, 000 'i,"79i,'666,"666" 5,800,294,000 22,703,000 75,522,000 98, 585,000 60,029,000 34,151,500 290,990, 500 11,398,000 51,650, 500 63,787,500 26,860, 500 19,140, 000 172, 836,500 17,068,000 8,480,000 "i27,"666,'666" *i96,"566,'666" 1,235,063,000 970,711,000 21,036,500 .41,984, 500 69,996,000 56,256, 500 33,480, 500 222,754,000 12,S20,000 'i23,'666,'666' 1,065,027,500 28,950,500 61,940,000 88,671,500 24,439,500 18,850, 500 222, 852,000 8,300,000 "262,'656," 666' 872,247,000 Treasury. San Francisco. $36,900,000 85,958,000 172,790,500 305,020,000 390,475,000 168,052,000 93,872,000 30,556,500 $10,605,000 1,283,624,000 130,613,500 . 47, 831,000 166,156,500 199,031, 500 123,430,000 58, 513,500 594,962, 500 10, 880,000 11,895,000 65,316,000 23,397,500 7,400,000 12,000,000 _ _ 44,588,500-00 34,645,000.00 40,063,000.00 119,296,500.00 fed O >^ H w ^ > Ul d feti Ki * 661,'166," 666' "ii2,"69i,'766.*66 2,490, 566,500 1,040,990,658.53 32,854,450.00 1,435,846,808.53 CO EXHIBIT 2. ISSUES AND RETIREMENTS—CERTIFICATES OF INDEBTEDNESS. Fiscal year ended June 30, 1921. R a t e (per cent). Title. L o a n issues: M a t u r e d J u n e 30, F e b . 8 1918 M a r . 20, 1918 A p r . 10 1918 IV-A IV-B IV-C... . IV-D IV-E V-A . V-B. V-C V-D V-F V-G . V-H V-J . V-K A-1920 . B-1920... . C-1920. D-1920 Unmatured Jime E-1920 F-1920... G-1920 1920— .. . . . . 4 t .. % . 3 4* n . . . .- 30,1920— . . . ti . H-1920. f A-1921... B-1921 . . 5^ 5f 5f D a t e of issue. D a t e of maturity. May June July Oct. Nov. Nov. Dec. Jan. May May June June July July Aug. Sept. Oct. Jan. Jan. Feb. Feb. 9,1918 18,1918 9,1918 24,1918 7,1918 21,1918 5,1918 2,1919 6,1919 20,1919 3,1919 17,1919 15,1919 29,1919 12,1919 9,1919 7,1919 2,1920 15,1920 2,1920 16,1920 $2,000 500 10,000 500 13,000 5,500 8,500 2,000 2,500 2,500 1,000 2, 000 7,500 7,000 5,000 11, 000 3,000 13, 500 9, 500 109, 500 8,000 A p r . 1,1920 A p r . 15,1920 do July July Oct. 1,1920 15,1920 15,1920 153,650,000 79,015, 500 169,033, 500 May N o v . 15,1920 102,865,000 Jan. Jan. 176,604,000 Feb. Mar. Apr. June .July July Aug. Sept. Dec. Dec. Jan. Jan. Feb. Feb. Mar. Apr. May Aug. Aug. Sept. Dec. 8,1918 20,1918 10,1918 25,1918 9,1918 23,1918 6,1918 3,1918 5,1918 19,1918 2,1919 16,1919 13,1919 27,1919. 13,1919 10,1919 1,1919 1,1919 15,1919 2,1919 1,1919 3,1921 15,1921 6 A u g . 16,1920 A u g . 16,1921 s N o v . 15,1920 J a n . 15,1921 do........ M a y 16,1921 A p r . 15,1921 Oct. 15,1921 5h F e b . 15,1921 July 15,1921 Retired. Matured. . Unmatured. $2,000 11,000 5,000 1,000 1,000 1,500 1,000 2,000 6,500 7,000 5,000 11,000 • 3,000 13,500 9,500 106,000 8,000 1 31,000 J u n e 15,1920 J u l y 15,1920 D-1921 E-1921 F-1921... G-1921 O u t s t a n d i n g J u n e 30,1921. Issued. 1 $20,000 17,1920 C-1921 . . . . Outstanding J u n e 30,1920. i26,783,566 130,000 157,654, 500 1 10, 000 232,124,000 118,660,000 192,026,500 1 5, 000 132, 886,500 1 1,000 153,646, 000 79,015,000 169,007, 500 20,000 102,855,000 31,000 176,578, 500 126,749, 500 30,000 2,162,000 10, 000 230, 981,000 118,584,000 . , $500 10,000 500 2,000 5,500 3,500 1,000 1,500 1,000 hj O pi H O 1,000 H W 3,500 > 4,000 500 26,000 O Ul 10,000 25,500 34,000 $155,492, 500 1,143,000 76,000 192,026, 500 5,000 4,000, 000 1,000 128,886, 500 ^H-1921 5^ 1 A n r . 15.1921 . . . A-1922 5'^ May 16,1921 Oct. 15,1921 F e b . 16,1922 T o t a l l o a n issues 681,392,000 T a x issues: M a t u r e d J u n e 30,1920— J a n . 2. 1918 . . . A u g . 20,1918 T-2 T-5...: T-6 ... . T-7 T-8 T-9 . TM-3-1920 TJ-1920. TM-4-1920 -. U n m a t u r e d J u u e 30,1920— T-10 . TD-1920..... ' TM-1921... 4 4 4-1 4i tl . . . .. 4i 4i TJ-1921.. 6 TM-2-1921.. TM-3-1921. .11 TS-1921 6 TM-4-1921 5f TJ-2-1921 51 T.D-1921.. 6 TS-2. TJ-1922 4^ 41 4J 4i 4^ 212,000 1,163,772,500 5^ . . 51 5i 3,000 36,500 29,500 4,000 1,000 1,000 143,000 26,500 38,000 4,331,000 • 63,000 1,000 10,000 2,000 4,000 1,000 1,000 133,000 26,-500 35,000 4,289,500 58,000 2.000 26,500 27,500 S e p t . 15,1919 Sept. 15,1920 657,469,000 33,500 Jan. 2,1920 Mar. 15,1920 Dec. 15,1920 Mar. 15,1921 703,026,000 201,370,500 657,435,500 16,000 702,835,500 201,172,500 1,453,000 237,117,000 15,000 74,129,000 106,6i;6,500 37,000 1 i, 453,666 J u n e 15,1920 J u l y 15,1920 S e p t . 15,1920 do Oct. J u n e 15,1921 242,517,000 Mar. 15,1921 .do . S e p t . 15,1921 15,1920 Mar. 15,1921 D e c . 15,1920 J u n e 15,1921 do Dec. 15,1921 M a r . 15,1921 Sept. 15,1921 do........ Mar. 15,1922 J u n e 15,1921 J u n e 15.1922 1,809,059.. 000 2 6 Various. 1,349,000 J u n e 25,1918 J u l v 15,1919 J u n e 17,1919 Dec. 15,1919 S e p t . 15,1919 Dec. 15,1919 Mar. 15,1920 do do J u n e 15,1920 Mar. 15,1920 1 15,000 74,278,000 106,626,500 1 37,000 341,969,500 1 24,000 124,252,500 15,oob 188,123,000 1 21,000 401,557,500 1 31,000 193,302,000 1 12,000 288,501,000 1 1,000 314,184, oao 1 1,615,000 2,032,794,000 2 187,338,000 256,170,000 Jan. 2,1918 A u g . 20,1918 J a n . 16,19.19 J u n e 3,1919 July 1,1919 do J u l y 15,1919 S e p t . 15,1919 Dec. 1,1919 Dec. 15,1919 F e b . 2,1920 T o t a l t a x issues .Pittman A c t . Special ( W a r F i n a n c e Corporation) Special ( s h o r t t e r m ) 190,511, 500 115,000 1 16,000 . TM-1922... . .. 190,511,500 1115,000 256,170,000 1212,000 1,406,816, 500 Various S e p t . 22,1920 Various Denominational exchange. Various Sept. 22,1921 Various 259,375,000 24,000,000 32, 854,450 5,014,500, OCO 923,087,000 10,000 Ul 3,000 41,500 5,000 o S > 190,500 198,000 5,400,000 o >^ 149,000 10,000 H Pi 341,969,500 24,000 124,059,000 •5,000 186,518,000 21,000 12,000.000 31; 000 193,500 > 1,605,000 Ul 389,557,500 193,302,000 12,000 288, 501,000 • 1,000 314,184,000 1, 615,000 2,306,444,000 187,338,000 43, 500,000 5,038,500,000 2 Traiisfer. 7,895,000 1, 527,514, 000 215,875,000 32,854,450 d w Issues and retirements—Certijicates of indebtedness—Continued. C5 RECAPITULATION. O u t s c a n d i n g J u n e 30,1920. O u t s t a n d i n g J u n e 30, 1921. Title. ° Issued. Matured. Unmatured. Total. Loan issues • $224,000 $681,168,000 $681,392^000 Tax issues 4,676,500 1,804,382,500 1,809,059,000 Pittman Act War Finance Corporation Special (short term) Total • • .: 4,900,500 ,Retued. Matured. 1 $212,000 1,406,816,500 11.615,000 2,032,794,000 2 187,338,000 $212,000 1,163,772,500 1,615,000 2,306,444,000 187,338,000 43,500,000 259,375,000 259,375,000 24,000,000 . 24,000,000 32,854,450 5,014,500,000 5,038,500,000 2,773, 826, 009 1 1,827,000 2187.338,000 8,486; 964,950 1,827,000 187,338.000 8, 552, 216,500 2,768,925,500 ^ Denominational exchange. Unmatured. Total. $1,349,000 $923,087,000 $924,436,000 7,895,000 1,527.514,000 1,535,409,000 215,875,000 32,854,450 215,875,000 32,854,450 o pi H O 9,244,000 2,699,330,450 2 708 574 450 2 Transfer. o Ul SECRETARY OF THE TREASURY. 177 E X H I B I T 3. [Department Circular No. 214. Loans and Currency.] U N I T E D S T A T E S OF A M E R I C A — T R E A S U R Y C E R T I F I C A T E S OF I N D E B T E D N E S S . DATED AND BEARING I N T E R E S T FROM DEC E M B E R 1 5 , 1 9 2 0 . S E R I E S T J 2 - 1 9 2 1 , 6f P E R C E N T , D U E J U N E 1 6 , 1 9 2 1 . S E R I E S T D - 1 9 2 1 , 6 P E R CENT, D U E D E C E M B E R 15, 1 9 2 1 . . The Secretary of the Treasury, under the authority of the act approved September 24, 1917,, as amended, offers for subscription, at par and accrued interest, through the Federal Reserve Banks, Treasury certificates of indebtedness, in two series, both dated and bearing interest from December 15, 1920, the certificates df Series T J2-1921 being payable on June 15, 1921, and bearing interest at the rate of five and three-quarters per cent per annum, and the certificates of Series T D-1921 being payable on December 15, 1921, and bearing interest at the rate oi six per cent per annum, payable semiannually. Applications will be received at the Federal Reserve Banks. Bearer certificates will be issued in denominations of $500, $1,000, $5,000, $10,000, and $100,000. The certificates of Series T J2-1921 will have one interest coupon attached payable June 15, 1921, and the certificates of Series T D-1921 two interest coupons attached, payable June 15 and December 15, 1921. The certificates of both said series shall be exempt, both as to principal and interest, from all taxation now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority, except (a) estate or inheritance taxes, and (b) graduated additional income taxes, commonly known as surtaxes, and excess profits and war-profits taxes, now or hereafter imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corporations.' The interest on an amount of bonds and certificates authorized by said act approved September 24, 1917, and amendments thereto, the rincipal of which does not exceed in the aggregate $5,000, owned y any individual, partnership, .association, or. corporation, shall be exempt from the taxes provided for in clause (b) above. Certificates of these series will be accepted at par, with an adjustment of accrued interest, during such time and under such rules and regulations as shall be prescribed or approved by the Secretary of the Treasury, in payment of income and profits taxes payable at the maturity of the certificates, respectively. The certificates of these series do not bear the circulation privilege. The right is reserved to reject any subscription and to allot less than the amount of certificates of either or both series applied for and to close the subscriptions as to either or both series at any time without notice. Payment at par and accrued interest for.certificates allotted must be made on or oefore December 15, 1920, or on later allotment. After allotment and upon-payment Federal Reserve Banks may issue interim receipts pending delivery of the definitive certificates. Any qualified depositary will be permitted to make payment by credit for certificates allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits when so notified by the Federal Reserve Bank of E 70073—FI 1921 12 178 REPORT ON THE FINANCES. its district. Treasury certificates of indebtedness of Series T.D-1920", maturing December 15, 1920, of Series A-1921, maturing January 3, 1921, and of Series B-1921, maturing January 15, 1921, will be accepted at par, with an adjustment of accrued interest, in payment for any certificates of the Series T J2-1921 or T D-1921 now offered which shall be subscribed for and allotted. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscriptions and to make allotment in full in the order of the receipt of applications up to amounts indicated by the Secretary of the Treasury to the Fecieral Reserve Banks of the respective districts. D. F. HOUSTON, Secretary of tlie Treasury. TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, . ^ December 8,1920. To THE INVESTOR: Almost any banking institution in the United States will handle your subscription for you, or you may make subscription direct to the Federal Reserve Bank of your district. Special attention is invited to the terms of subscription as stated above. If you desire to purchase certificates of the above issues after the subscriptions close, or certificates of any outstanding issue, you should make application to your own bank, or if it can not obtain them for you, to the Federal Reserve Bank of your district. EXHIBIT 4. [Department Circular No. 222. Loans and Currency.] UNITED S T A T E S OF AMERICA—TREASURY CERTIFICATES OF INDEBTEDNESS. DATED AND BEARING INTEREST FROM JANUARY 16, 1921. SERIES E 1921, 5^ P E R CENT, DUE APRIL 15, 1921. SERIES F 1921, 5f P E R CENT, DUE OCTOBER 15, 1921. The Secretary of the Treasury, under the authority of the act approved September 24, 1917, as amended, offers for subscription, at par and accrued interest, through the Federal Reserve Banks, Treasury certificates of indebtedness, in two series, both dated and bearing interest from January 15, 1921, the certificates of Series E 1921 being payable on April' 15, 1921, with interest at the rate of five and one-half per cent per annum, and the certificates of Series F 1921 being payable on October 15, 1921, with interest at the rate of five and tnree-quarters per cent per annum. Applications will be received at the Federal Reserve Banks. Bearer certificates will be issued in denominations of $500, $1,000, $5,000, $10,000, and $100,000. The certificates of Series E 1921 will have one interest coupon attached, payable April 15, 1921, and the certificates of Series F 1921 two interest coupons attached, one for semiannual interest payable July 15, 1921, and the other payable October 15, 1921. The certificates of said series shall be exempt, both as to principal and interest, from all taxation now or hereafter imposed by the United States, any State, or any of the possessions of the United States, of by any local taxing authority, except (a) estate or inheritance taxes, and (&) graduated additional income taxes, commonly known as surtaxes, and excess-profits and war-profits taxes, now or hereafter imposed by the United States, upon the income or profits SECRETARY OE THE TREASURY. 179 of individuals, partnerships, associations, or corporations. The interest on an amounts'of bonds and certificates autnorized by said act approved September 24, 1917, and amendments thereto, the principal of which does not exceed in the aggregate $5,000, owned by any individual, partnership, association, or corporation, shall be exempt from the taxes provided for in clause (b) above. ^ The certificates of these series do not bear the circulation privilege, and will not be accepted in payment of taxes. The right is reserved to reject any subscription and to allot less than the amount of certificates of either or both series applied for and to close the subscriptions as to either or both series at any time without notice. Payment at par and accrued interest for certificates allotted must be made on or before January 15, 1921, or on later allotment. After allotment and upon payment Federal Reserve Banks may issue interim receipts pending delivery of the definitive certificates. Any qualified depositary will be permitted to make payment by credit for certificates allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits when so notified by the Federal Reserve Bank of its district. Treasury certificates of indebtedness of Series B-1921, maturing January 15, 1921, will be accepted at par, with an adjustment of accrued interest, in pa3^ment for any certificates of the Series E 1921 or F 1921 now offered which shall be subscribed for and allotted. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscriptions and to make allotments in full in the order of the receipt of applications up to amounts indicated by the Secretary of the Treasury to the Federal Reserve Banks of the respective districts. D. F. HOUSTON, Secretary of the Treasury. TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, January 10, 1921. To THE INVESTOR: Almost any banking institution in the United States will handle your subscription . for you, or you may make subscription direct to the Federal Reserve Bank of your district. Special attention is invited to the terms of subscription as stated above. If you desire to purchase certificates of the above issues after the subscriptions close, or certificates of any outstanding issue, you should make application to your own bank, or if it can not obtain them for you, to the Federal Reserve Bank of your district. E X H I B I T 5. [Department Circular No. 227. Loans and Currency.] UNITED STATES OF AMERICA—FIVE AND ONE-HALF P E R CENT T R E A S U R Y C E R T I F I C A T E S O F INDEBTEDNESS. SERIES G 1921. DATED AND BEARING INTEREST FROM FEBRUARY 15, 1 9 2 1 . DUE JULY 15, 1921. The Secretary of the Treasury, under the authority of the act approved September 24, 1917, as amended, offers for subscription,at par and accrued interest, through the JFederal Reserve Banks, Treasury certificates of indebtedness, Series G 1921, dated and bear- 180 REPORT ON THE FINANCES. ing interest from February 15, 1921, payable July 15, 1921, with interest at the rate of five and one-half per cent' per annum. Applications will be received at the Federal Reserve Banks. - Bearer certificates will be issued in denominations of $500, $1,000, $5,000, $10,000, and $100,000. The certificates will have one interest coupon attached, payable July 15, 1921. The certificates of said series shall be exempt, both as to principal and interest, from all taxation now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority, except (a) estate or inheritance taxes, and (b) graduated additional income taxes, commonly known as surtaxes, and excess-profits and war-profits taxes, now or hereafter imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corporations. The interest on an amount of bonds and certificates authorized by said act approved September 24, 1917, and amendments thereto, the rincipal of which does not exceed in the aggregate $5,000, owned y any individual, partnership, association, or corporation, shall be exempt from the taxes provided for in clause (b) above. The certificates of this series do not bear the circulation privilege and will not be accepted in payment of taxes. The right is reserved to reject any subscription and to allot less than the amount of certificates applied for and to close the subscriptions at any time without notice. JPayment at par and accrued interest for certificates allotted must be made on or before February 15, 1921, or on later allotment. After allotment and upon payment Federal Reserve Banks may issue interim receipts pending delivery of the definitive certificates. Any qualified depositary will be permitted . to make payment by credit for certificates allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits, when so notified by the Federal Reserve Bank of its district. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscriptions and to make allotment in full in the order of the receipt of applications up to amounts indicated by the Secretary of the Treasury to the Federal Reserve Banks of the respective districts. E D. F. HOUSTON, Secretary of the Treasury. TREASURY DEPARTMENT, . OFFICE OF THE SECRETARY, February 10, 1921. TO.THE INVESTOR: Almost any banking institution in the United States will handle your subscription for you, or you may make subscription direct to the Federal Reserve Bank of your district. ' Special attention is invited to the terms of subscriptions as stated above. If you desire to purchase certificates of the above issue after the subscriptions close, or certificates of any outstanding issue, you should make application to your own bank, or. if it can not obtain them for you, to the Federal Reserve Bank of your district. SECRETARY OF T H E TREASURY. 181 E X H I B I T 6. [Department Circular No. 232. Loans and Currency.] U N I T E D S T A T E S O F A M E R I C A — T R E A S U R Y CERTIFICATES OF INDEBTEDNESS. DATED AND BEARING INTEREST FROM MARCH 15, 1921. SERIES T S2-1921, 5^ PER CENT, DUE SEPTEMBER 15, 1921. SERIES T M-1922, 5f PER CENT, DUE MARCH 15, 1922. The Secretary of the Treasury, under the authority of the act approved September 24, 1917, as amended, offers for subscription, at par and accrued interest, through the Federal Reserve Banks, Treasury certificates of indebtedness, in two series, both dated and bearin*g, interest from March 15," 1921, the certificates of Series T S2-1921 being payable on September 15, 1921, with interest at the rate of five ancf one-half per cent per annum semiannually, and the certificates of Series T M-1922 being payable on March 15, 1922, and bearing interest at the rate of five and three-quarters per cent per annum, payable semiannually. Applications will be received at the Federal Reserve Banks. Bearer certificates will be issued in denominations of $500, $1,000, $5,000, $10,000, and $100,000. The certificates of Series T S2-1921 will have one interest coupon attached payable September 15, 1921, and the certificates of Series T M-1922 two interest coupons attached, payable September 15, 1921, and March 15, 1922. The certificates of both said series shall be exempt, both as to . principal and interest, from all taxation now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority;, except (a) estate or inheritance taxes, and (b) graduated additional income taxes, commonly known as surtaxes, and excess-profits and war-profits taxes, now or hereafter imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corporations. The interest on an amount of bonds and certificates authorized by said act approved September 24, 1917, and amendments thereto, the principal of which does not exceed in the aggregate $5,000, owned by any individual, partnership, association, or corporation, shall be exempt from the taxes provided for in clause- (b) above. Certificates of these series will be accepted at par, with an adjustment of accrued interest, during such time and under such rules and regulations as shall be prescribed or approved by the Secretary of the Treasury, in payment of income and profits taxes payable at the maturity of the certificates, respectively. The certificates of these series do not bear the circulation privilege. The right is reserved to reject any subscription and to allot less than the amount of certificates of either or both series applied for and to close the subscriptions as to either or both series at any time without notice. Payment at par and accrued interest for certificates allotted must be made on or before March 15, 1921, or on later allotment. After allotment and upon payment Federal Reserve Banks may issue interim receipts pending delivery of the definitive certificates. Any qualified depositary will be permitted to make payment by credit for certificates allotted to it for itself and its customers up tb any amount for which it shall be qualified in excess 182 REPORT ON THE FINANCES. of existing deposits when so notified by the Federal Reserve Bank of its district. Treasury certificates of indebtedness of Series T M-1921, Series T M2-1921, Series T M3-1921, and Series T M4-1921, all maturing March 15, 1921, and of Series E 1921, maturing April 15, 1921, with any unmatured interest coupons attached, will be accepted at par, with an adjustment of accrued interest, in payment for any certificates of the Series T S2-1921 or T M-1922 now offered which shall be subscribed for and allotted. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscriptions and to make allotment in full in the order of the receipt of applications up to amounts indicated by the Secretary of the Treasury to the Federal Reserve Banks of the respective districts. A. W. MELLON, Secretary of the Treasury. TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, March 9, 1921. T O THE INVESTOR: Almost any banking institution in the United States will handle your subscription for you, or you may make subscription direct to the Federal Reserve Bank of your district. Special attention is invited to the terms of subscription as stated above. If you desire to purchase certificates of the above issues after the subscriptions close, or certificates of any outstanding issue, you should make application to your own bank, or if it can not obtain them for you, to the Federal Reserve Bank of your district. EXHIBIT 7. [Department Circular No. 235. Loans and Currency.] UNITED S T A T E S OF AMERICA—FIVE AND ONE-HALF P E R CENT TREASURY CERTIFICATES OF INDEBTEDNESS, SERIES H 1921. DATED AND BEARING I N T E R E S T FROM APRIL 15, 1921. DUE OCTOBER 15, 1921. The Secretary of the Treasury, under the authority of the act approved September 24, 1917, as amended, offers for subscription, at par and accrued interest, through the Federal Reserve Banks, Treasury certificates of indebtedness, Series H 1921, dated and bear^ ing interest from April 15, 1921, payable October 15, 1921, with semiannual interest at the rate of five and one-half per cent per annum. Applications will be received at the Federal Reserve Banks. Bearer certificates will be issued in denominations of $500, $1,000, $5,000, $10,000, and $100,000. The certificates will have one interest couppn attached, payable October 15, 1921. The certificates of said series shall be exempt, both as to principal and interest, from all taxation now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority, except (a) estate or inheritance taxes, and (6) graduated additional income taxes, commonly known as surtaxes, and excess-profits and war-profits taxes, now or hereafter imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corporations. Thei interest on an amount of bonds and certificates authorized by said act SECRETARY OF THE TREASURY. 183 approved September 24, 1917, and amendments thereto, the principal of which does not. exceed in the aggregate $5,000, owned by any individual, partnership, association, or corporation, shall be exempt from the taxes provided for iucclause (b) above. The certificates of this series do not bear the circulation privilege and will not be accepted in payment of taxes.^ The right is reserved to reject any .subscription and to allot less than the amount of certificates applied for and to close the subscriptions at any time without notice. Payment at par and accrued interest for certificates allotted must be made on or before April 15, 1921, or on later allotment. After allotment and upon payment Federal Reserve Banks may issue interim receipts pending delivery of the definitive certificates. Any qualified depositary will be permitted to make payment by credit for certificates allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits, when so notified by the Federal Reserve Bank of its district. Treasury certificates of indebtedness of Series E 1921, maturing April 15, 1921, and of Series D 1921, maturing May 16, 1921 (with any unmatured interest coupons attached), will be accepted at par, with an adjustment of accrued interest, in payment for any certificates of the Series H 1921 now offered which shall be subscribed for and allotted. As fiscal agents of the United States, Federal Reserve Banks are. authorized and requested to receive subscriptions and to make allotment in full in the order of the receipt of applications up to amounts indicated by the Secretary of the Treasury to the Federal Reserve Banks of the respective districts. A. W. MELLON,. Secretary ofthe Treasury. TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, April 11, 1921. To THE INVESTOR: - ' Almost any banking institution in the United States will handle your subscription for you, or. you may make subscription direct to the Federal Reserve Bank of your district. Special attention is invited to the terms of subscription as stated above. If you desire to purchase certificates of the above issue after the subscriptions close, or certificates of any outstanding, issue, you should make application to your own bank, or if i t can not obtain them for you, to the Federal Reserve Bank of your district. EXHIBIT 8. [Department Circular No. 238. Loans and Currency.] U N I T E D STATES OF AMERICA—FIVE AND ONE-HALF P E R CENT T R E A S U R Y C E R T I F I C A T E S OF I N D E B T E D N E S S , S E R I E S - A - 1 9 2 2 . DATED AND B E A R I N G I N T E R E S T FROM MAY 16, 1921. D U E F E B R U A R Y 16, 1922. The Secretary of the Treasury, under the authority of the. act approved September 24, 1917, as amended, offers for subscription, a t par and accrued interest, through the Federal Reserve Banks, Treasury certificates of indebtedness, Series A-1922, dated and bearing interest from May 16, 1921, payable February 16, 1922, with interest at the rate of five and one-half per cent per annum. 184 REPORT ON THE FINANCES. Applications will be received at the Federal Reserve Banks. Bearer certificates will be issued in denominations of $500, $1,000, $5,000, $10,000, and $100,000. The certificates will have two interest coupons attached, one for semiannual ijiterest payable November 16, 1921, and the bther payable February 16, 1922. The certificates of said series shall be exempt, both as to principal and interest, from all taxation now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority, except (a) estate or inheritance taxes, and (b) graduated.additional income taxes, commonly known as. surtaxes, and excess-profits and war-profits taxes, now or hereafter imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corporations. The interest on am ainount of bonds and certificates authorized by said act approved September 24, 1917, and amendments thereto, the principal oi which does not exceed in the aggregate $5,000 owned by any individual, partnership, association, or corporation, shall be exempt from the taxes provided for in clause (b) above. The certificates of this series do not bear the circulation privilege and will not be accepted in payment of taxes. The right is reserved to reject any subscription and to allot less than the amount of certificates applied for and to close the subscriptions at any time without notice, r a y m e n t at par and accrued interest for certificates allotted must be made on or before May 16, 1921, or on later allotment. After allotment and upon payment Federal Reserve Banks may issue interim receipts pending delivery of the definitive certificates. Any qualified depositary will be permitted to make payment by credit for certificates allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits, when so notified by the Federal Reserve Bank of its district. Treasury certificates of indebtedness of Series D-1921, maturing May 16, 1921, will be accepted at par, with an adjustment of accrued interest, in payment for any certificates of the Series A-1922 now offered whicn shall be subscribed for and allotted. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscriptions and to make allotment in full in the order of the receipt of applications up to amounts indicated by the Secretary of the Treasury to the Feaeral Reserve Banks of the respective districts. A. W. MELLON, Secretary ofthe Treasury. TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, „ . . May 11, 1921. To THE INVESTOR: Almost any banking institution in the United States will handle your subscription for you, or you may make subscription direct to the Federal Reserve Bank of your district. Special attention is invited ,to the terms of subscription as stated above. If you desire to purchase certificates of the above issue after the subscriptions cl,ose, or certificates of any outstanding issue, you should make application to your own bank, or if it can not obtain them for you, to the Federal Reserve Bank of your district.. SECRETARY OF T H E TREASURY. EXHIBIT 185 9. [Department Circular, No. 241. Loans and Currency.] U N I T E D S T A T E S OF A M E R I C A - ^ F I V E AND O N E - H A L F P E R CENT T R E A S U R Y C E R T I F I C A T E S OF I N D E B T E D N E S S , S E R I E S T J - 1 9 2 2 . DATED AND BEARING I N T E R E S T FROM JUNE 15, 1921. DUE J U N E 15, 1922. ^ The Secretary of the Treasury, under the authority of the act approved September 24, 1917, as amended, offers for suoscription, at par and accrued interest, through the Federal Reserve Banks, Treasury certificates of indebtedness. Series T J-1922, dated and bearing interest from June 15, 1921, payable June 15, 1922, with interest at the rate of five and one-half per cent per annum, payable semiannually. Applications will be received at the Federal Reserve Banks. Bearer certificates will be issued in denominations of $500, $1,000, $5,000, $10,000, and $100,000. The certificates/will have two interest coupons attached, payable December 15, 1921, and June 15, 1922. The certificates of said series shall be exempt, both as to principal and interest, from all taxation now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority, except (a) estate or inheritance taxes, and (b) graduated additional income taxes, commonly known as surtaxes, and excess-profits and war-profits taxes, now or hereafter imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corporations. The interest on an amount of bonds and certificates authorized by said act approved September 24, 1917, and amendments thereto, the principal of which does not exceed in the aggregate $5,000, owned by any individual, partnership, association, or corporation,. shall be exempt from the taxes provided for in clause (6) above. Certificates of this series will be accepted at par, with an. adjustment of accrued interest, during such time and under such rules and regulations as shall be prescribed or approved by the Secretary of the Treasury, in pa3anent of income and profits taxes payable at the maturity of the certificates. The certificates do not Dear the circulation privilege. The right is reserved to reject any subscription and to allot less than the amount of certificates applied for and to close the subscriptions at any time without notice, r a y m e n t at par and accrued interest for certificates allotted must be made on or before June 15, 1921, or on later allotment. After allotment and upon payment Federal Reserve Banks may issue interim receipts pending delivery of the definitive certificates. Any qualified depositary will be permitted to make payment by credit for certificates allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits, when so notified by the Federal Reserve Bank of its district. Treasury certificates of indebtedness of Series T J-1921 and Series T J2-1921, both maturing June 15, 1921, and of Series G 1921, maturing July 15, 1921, and Series C 1921, maturing August 16, 1921, with any unmatured interest coupons attached, 186 REPORT ON T H E FINANCES. will be accepted at par, with an adjustment of accrued interest, in payment for any certificates of the Series T J-1922 now offered which shall be subscribed for and allotted. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscriptions and to make allotment in full in the ordegof the receipt bf applications up to amounts indicated by the Secretary of the Treasury to the Federal Reserve Banks of the respective districts. A. W. MELLON, Secretary of the Treasufy. TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, June 8, 1921. To THE INVESTOR: Almost any banking institution in the United States will handle your subscription for you, or you may make subscription direct to the Federal Reserve Bank of your district. Your special attention is invited to the terms of subscription and allotment as stated above. If you desire to purchase certificates of the above issue after the subscriptions close, or certificates of any outstanding issue, you should make application to your own bank, or if it can not obtain them for you, to the Federal Reserve Bank of your district. E X H I B I T 10. [Department Circular No. 246. ,Loans and Currency.] U N I T E D STATES OF AMERICA—TREASURY C E R T I F I C A T E S OF INDEBTEDNESS. DATED AND BEARING INTEREST FROM AUGUST 1, 1 9 2 1 . S E R I E S T M 2 - 1 9 2 2 , 5 i P E R C E N T , D U E M A R C H 1 5 , 1 9 2 2 . S E R I E S B - 1 9 2 2 , 5^ P E R C E N T , D U E A U G U S T 1, 1 9 2 2 . The Secretary of the Treasury, under the authority of the act approved September 24, 1917, as amended, offers for subscription, at par and accrued interest, through the Federal Reserve Banks, Treasury certificates of indebtedness, in two series, both dated and bearing interest from August 1, 1921, the certificates of Series TM21922 being payable on March 15, 1922, with interest at the rate of five and one-quarter per cent per annum, and the certificates of Series B-1922 being payable on August 1, 1922, with interest at the rate of five and one-half per cent per annum, payable, semiannually. Applications will be received at the Federal Reserve Banks. Bearer certificates will be issued in denominations of $500, $1,000, $5,000, $10,000, and $100,000. The certificates of Series TM2-1922 will have one interest coupon attached, payable March 15, 1922, and the certificates of Series B-1922 two interest coupons attached, payable February 1, 1922, and August 1, 1922. The certificates of said series shall be exempt, both as to principal and interest, from all taxation now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority, except {a) estate or inheritance taxes, and (&) graduated additional income taxes, commonly known as surtaxes, and excess-profits and war-profits taxes, now or hereafter im-. posed by the United States, upon tne income or profits of individuals, partnerships, associations, or corporations. The interest on an amount of bonds and certificates authorized by said act approved September 24, 1917, and amendments thereto, the principal of which SECRETARY OF THE TREASURY. 187 does not exceed in the aggregate $5,000, owned by any individual, partnership, association, or corporation, shall be exempt from the taxes provided for in. clause (6) above. The certificates of these series do not bear the circulation privilege, and the certificate of Series B-1922 will not be accepted in payment of taxes. The certificates of Series TM2-1922 will be accepted at par, with an adjustment of accrued interest, during such time and under such rules and regulations as shall be prescribed or approved by the Secretary of the Treasury, in payment of income and profits taxes payable at the maturity of the certificates. The right is reserved to reject any subscription and to allot less t h a n the amount of certificates of either or both series applied for and to close the subscriptions as to either or both series at any time without notice. Payment at par and accrued interest for certificates allotted^ must be made on or before August 1, 1921, or on later allotment. After allotment and upon payment Federal Reserve Banks may issue interim receipts pending delivery of the definitive certificates. Any qualified depositary will be permitted to make payment by credit for certificates allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits when so notified by the Federal Reserve Bank of its district. Treasury certificates of indebtedness of Series C-1921, maturing August 16, 1921, with any unmatured interest coupons attached, will be accepted at par, with an adjustment of accrued interest, in payment for any certificates of the Series TM2-1922 or B-1922 now offered which shall be subscribed for and allotted. As fiscal agents of the United States, Federar Reserve Banks are authorized and requested to receive subscriptions and to make allotments in full in the order of the receipt of applications up to amounts indicated by the Secretary of the Treasury to the Federal Reserve Banks of the respective districts. . A. W. MELLON, Secretary ofthe' Treasury. TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, ^ July 27, 1921. To THE INVESTOR: Almost any banking institution in the United States'will handle your subscription for you, or you may make subscription direct to the Federal Reserve Bank of your district. Your special attention is in^dted to the iterms of subscription and allotment as stated above. If you desire to purchase certificates of the aboye issues after the subscriptions close, you should make application to your own bank, or if it can not obtain them for you, to the Federal Reserve Bank of your district. EXHIBIT 11. [Department Circular No. 255. Loans and Currency.] UNITED STATES OF AMERICA—TREASURY CERTIFICATES OF INDEBTEDNESS. DATED AND BEARING INTEREST FROM SEPTEMBER 15, 1921. SERIES TM3-1922, 5 P E R CENT, DUE MARCH 15, 1922. SERIES TS-1922, 5 i P E R CENT, DUE SEPTEMBER 15, 1922. The Secretary of the Treasury, under the authority of the act approved September 24, 1917, as amended, offers for subscription, at 188 REPORT ON THE FINANCES. par and accrued interest, through the Federal Reserve Banks, Treasury certificates of indebtedness, in two series, both dated and bearing interest* from September 15, 1921, the certificates of Series T M 3 1922 being payable on March 15, 1922, with interest at the rate of five per cent per annum semiannually, and the certifi^cates of SeriesTS-1922 being payable on September 15, 1922, with interest at the rate of.five and one-quarter per cent per annum, payable semiannually. Applications will be received at the Federal Reserve Banks. Bearer certificates will be issued in denominations of $500, $1,000, $5,0Q0, $10,000, and $100,000. The certificates of Series TM3-1922' will have one interest coupon attached, payable March 15, 1922, and the certificates of Series TS-1922 two interest coupons attached, pay-^ able March 15, 1922, and September 15, 1922. The certificates of said series shall be exempt, both as to principal and interest, from a41 taxation now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority, except (a) estate or in-^ heritance taxes, and (b) graduated additional income taxes, commonly known as surtaxes, and excess-profits and war-profits taxes,, now or hereafter imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corporations. The interest on an amount of bonds and certificates authorized by^ said act approved September 24, 1917, and amendments thereto, the principal of which does not exceed in the aggregate $5,000,. owned by any individual, partnership, association, or corporation,, shall be exempt from the taxes provided for in clause (b) above. The certificates of these series will be accepted at par, with an adjustment of accrued interest, during such time and under such rulesand regulations as shall be prescribed or approved by the Secretary of the Treasury, in payment of income and profits taxes payable at the maturity of the certificates. The certificates of these series donot bear the circulation privilege.. The right is reserved to reject any subscription and to allot lessthan the amount of certificates of either or both series applied for and to close» the subscriptions as to either or both series at any timewithout notice. Payment at par and accrued interest for certificates allotted must be made on or before September 15, 1921, or on later allotment. After allotment and upon payinent Federal Reserve Banks may issue interim receipts pending delivery of the definitivecertificates. Any qualified depositary will be permitted to make payment by credit for certificates allotted to it for itself and its cus-^ tomers up to any amount for which it shall be qualified in excess of existing deposits when so notified by the Federal Reserve Bank of itsdistrict. Treasury certificates of indebtedness of Series TS-1921 and Series TS2-1921, both maturing. September 15, 1921, and of SeriesF-1921 and Series H-1921, both maturing October 15, 1921, witk any unmatured interest coupons attached, will be accepted at par,. with an adjustment of accrued interest, in paynient for any certificates of the Series TM3-1922 or TS-1922 now offered which shall besubscribed for and allotted. SECRETARY OF THE TREASURY. 189 As >fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscriptions and to make allotments in full in the order of the receipt of applications up to amounts' indicated by the Secretary of the Treasury to the Federal Reserve Banks of the respective districts. A. W. MELLON, Secretary of the Treasury. TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, September 9, 1921. T O THE INVESTOR: Almost any banking institution in the United States will handle your subscription ior you, or you may make subscription direct to the Federal Reserve Bank of your district. Your special attention is invited to the terms of subscription and allotment as stated above. If you desire to purchase certificates of the above issues after the subscriptions close, or certificates of any outstanding issue, you should make" application to your own bank, or if it can not obtain them for you, to the Federal Reserve Bank of your district. Exi-HBIT 12. [Department Circular No. 264. Loans and Currency.] UNITED STATES OF AMERICA—TREASURY CERTIFICATES OF INDEBTEDNESS. DATED AND BEARING INTEREST FROM NOVEMBER 1, 1921. SERIES C-1922, 4y4 PER CENT, DUE APRIL 1, 1922. S E R I E S TS 2-1922, 4V2 PER CENT, DUE SEPTEMBER 15, 1922. The Secretary of the Treasury, under the authority of the act approved September 24, 1917, as amended, offers for subscription, at par and accrued interest, through the Federal Reserve Banks, Treasury certificates of indebtedness, in two series, both dated and bearing interest from November 1, 1921, the certificates of Series 0-1922 being payable on April 1, 1922, with interest at the rate of four and one-quarter per cent per annum, and the certificates of Series TS 2-1922 being payable on September 15, 1922, with semiannual interest at the rate of four and one-half per cent per annum. Applications will be received at the Federal Reserve Banks. Bearer certificates will be issued in denominations of $500, $1,000, $5,000, $10,000, and $100,000. The certificates of Series C-1922 will have one interest coupon attached, payable April 1, 1922, and the certificates of Series TS 2-1922 two interest coupons attached, payable May 1, 1922, and September 15, 1922. The certificates of said series shall be exempt, both as t o principal and interest, from all taxation now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority, except (a) estate or inheri. tance taxes, and (b) graduated additional income taxes, commonly known as surtaxes, and excess-profits and war-profits taxes, now or hereafter imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corporations. The interest on an amount of bonds and certificates autnorized by said act approved September 24, 1917, and amendments thereto, the principal of which does not exceed in the aggregate $5,000, owned by any individual, partnership, association, or corporation, shall be exempt from the tax.es provided for in clause (b) above. 190 REPORT ON T H E FINANCES. - ' The certificates of these series do not bear the circulation piivilege/ and the certificates of Series C-1922 will not be accepted in payinent of taxes. The certificates of Series TS 2-1922 will be accepted a t par, with an adjustment of accrued interest, during such time and under such rules and regulations as shall be prescribed or approved by'the Secretary of the Treasury, in payment of income and profits taxes payable at the maturity of the certificates. The right is reserved to reject any subscription and to allot less than the amount of certificates of either or both, series applied for and to close the subscriptions as to either or both series at any time without notice. Payment at par and accrued interest for certificates allotted must be made on or before November 1, 1921, or on later allotment. After allotment and upoii payment Federal Reserve Banks may issue interim receipts pending delivery of the definitive certificates. Any qualified depositary will be permitted to make payment by credit for certificates allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits when so notified by the Federal Reserve Bank of its district. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscriptions and to make allotments in full in the order of the receipt of applications up to amounts indicated by the Secretary of the Treasury to the Federal Reserve Banks of the respective districts. A. W. MELLON, Secretary ofthe Treasury. • TREASURY DEPARTMENT, O F F I C E OF THE SECRETARY, October 27, 1921. To THE I N V E S T O R : Almost any banking institution in the United States will handle your subscription for you, or you may raake subscription direct to the Federal Reserve Bank of your district. Special attention if invited to the terms of subscription and allotment as stated above. If you desire to purchase certificates of the above issues after t h e subscriptions close, or certificates of any outstanding issue, you should make, application to your own bank, or if it can not obtain them for y^ou, to the Federal Reserve Bank of your district. E X H I B I T 13. [Department Circular No. 240. Loans and Currency.] U N I T E D STATES OF AMERICA—FIVE AND T H R E E - Q U A R T E R S P E R CENT T R E A S U R Y NOTES, S E R I E S A-1924. DATED AND B E A R I N G " I N T E R E S T FROM J U N E 15, 1921. DUE J U N E 15, 1924. . The Secretary of the Treasury offers for subscription, at par and accrued interest, through the Federal Reserve Banks, Treasury notes of Series A-1924, of an issue of gold notes of the United States authorized by the Act of Congress approved September 24, 1917, as amended. Thenotes will be dated and bear interest from. June 15, 1921, will be payable June 15, 1924, and will bear interest at the rate of five and three-quarters per cent per annum payable semiannually on December 15 and June 15 in each year. Applications willbe received at the Federal Res'erve Banks. Bearer notes with interest coupons attached will be issued in denominations of $100, $500, $1,000, $5,000, $10,000, and $100,000. The -SECRETARY OF J H E TREA;SURY. 191 notes are not subject to call for redemption before maturity, and will hot be issued iii registered form. The principal and interest of the notes willbe paiyablein United States gold coin of the present standard •'of valtiev'••'/'; ••;../, './ • ; • . / . ' ; . ."•...^.:^,^;• , ; ^[/'''•,: •'. .\. .. ' - The notes of said series shall be exempt, both as to principal and interest, frdm all taxation now or hereaiter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority, except (a) estate or inheritance taxes, and (6) graduated additional income taxes, commonly known as surtaxes, and excess-profits and war-profits taxes, now or hereafter imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corporations. Notes of this series will be accepted at par, with an adjustment of accrued interest, during such time and under such rules and regulations as shall be prescribed or apprbved by the Secretary of the Treasury > in payment of income and profits taxes,pay able at or within six months before the maturity of t h e n o t e s . Any of the notes which have been owned,by any person continuously for a t least six months prior to the date of his death, and which upoii such date, constitute art of his estate, shall, under rules and regulations prescribed by the ecretary of the Treasury, be receivable by the United States at par and accrued interest in payment of any estate or inheritance taxes imposed by the United States, under or by virtue of any present or future law upon such estate or the inheritance thereof. The notes of this series will be acceptably to secure deposits of public moneys, but do not bear the circulation privilege. The right is reserved to reject any subscription and to allot less than the amount of notes applied for and to close the subscriptions at any time without notice, r a y m e n t at par and accrued interest for notes allotted must be made on or:before June 15, 1921, or on later allotment. After allotment and upon payment Federal Reserve Banks may issue interim receipts pending delivery of the definitive notes. Any qualified depositary will be permitted to make payment by credit for notes allotted to.it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits, when so notified by the Federal Reserve Bank of its district. Treasury certificates of indebtedness of Series TJ-1921 and Series TJ2-1921, both maturing June 15,1921, and of Series G-1921, maturing July 15, 1921, and Series C-l921, maturing August 16, 1921, with any unmatured interest coupons attached, will be accepted a t par, with an adjustment of accrued interest, in payment for any notes of the Series A-1924 now offered which shall be subscribed for and allotted. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscriptions and to make allotment in full in the order of the receipt of applications up to amounts indicated by the Secretary of the Treasury to the Federal Reserve Banks of the respective districts. E A. W. MELLON, Secretary of the Treasury. T H E TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, J u n e 8, 1921. : 192 REPORT ON THE FINANCES. ^ ' TO THE INVESTOR: ° ^ . Almost any banking institution in the United States will handle your subscription for you, or you may make subscription direct to the Federal Reserve Bank of your : district; Your special attention is invited to the terms of subscription and allotment as stated above: If you desire to purchase notes of the above issue after the subscriptions close j you should naake application to your own bank, or if it can not . obtain them for you, to the Federal Reserve Bank of your district. . . ^ . : : ' EXHIBIT 14. [Department Circular No. 256. Loans and Currency.] UNITED STATES OF AMERICA—FIVE AND ONE-HALF P E R CENT TREASURY NOTES, SERIES B-1924. DATED AND BEARING INTEREST FROM SEPTEMBER 15, 1921. DUE SEPTEMBER 16, 1924. ; The Secretary of the Treasury offers for subscription, at par and. accrued interest, through the Federal Reserve Banks, Treasury notes of Series B-1924, of aii issue of gold notes of the United States authorized by the Act of Congress approved September 24, 1917, as amended. The notes will be dated and bear interest from Sep- . tember 15j 1921, will be payable September 15, 1924, aiid will bear interest at the rate of five and one-half per cent per aimum payable semiannually on March 15 and September 15 in each yeair. Applications will be received at the Federal Reserve Banks. Bearer notes with interest coupons attached will be issued in denominations of $100, $500, $1,000, $5,000, $10,000, and $100,000. The notes are not subject to call for redemption bef ore maturity, and will n o t be issued in registered forrn. The principal and interest of; the notes will be payable in United States gold coin of the present standard of value. • • The notes of said series shall be exempt, both as to principal and interest, from all taxation now or hereafter imposed by the United States, any St^ate, or any of the possessions of the Uhited States,.or by any local taxing authority, except (a) estate or inheritance taxes, and (6) graduated additional income taxes, pommonly known as surtaxes, and excess-profits and war-profits taxes, now or hereafter 'imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corpprations. : ' Notes of this series will be accepted at par, with an adjustinent of - acci-ued interest, during such time and under such-rules and regulations ais shall be prescribed or approved by the Secretary "of the Treasury, in payinent of income aiid profits taxes payable at or within six months hefore the maturity of the notes. Aiiy of the , notes which have beeii owned by any person continuoiisly for at least six mohths prior to the date of his death, and which upon such date constitute part of his estate, shall, uiider irules and regulations prescribed by the Secretary of the Treasury, be receivable by the United States at par a n d accrued interest in payment of any estate or inheritance taxes imposed b y ' t h e United Stately under or by virtue of any present or future law upon such estate or the inheritance thereof.^ The i^^^^ series will be acceptable to secure deposits of public moneys, but do not bear t h e circulation privilege. The right is reserved to reject any subscription arid to allot less than the amount of notes applied for and to close the subscriptions at any time without notice. Payment at par and accrued interest ' for notes allotted must be made on or before September 15, 1921, or SECRJETARY OF T H E TREASURY. , 193 on later alio tment .^ After Mlo tment and upon payment Federal. Reserve Banks may issue interim receipts pending delivery of the defihitive notes. Any qualified depositary will be permitted to make payment by ci^edit for notes allotted to i t for itself and its customers up to any ainount for which it shall be qualified in excess of existing deposits, when so notified by the Federal Reserve Bank of its district. ^ Treasury certificates of indebtedness of Series TS-1921 and Series TS2^i921, .both maturing September 15, 1921, and of Series F-1921 arid Series H-192i, both maturing October 15/ 1921, with-any unmatured interest coupoils attached, wil! be accepted at par, with an-adjustment of accrued interest, in" payrnent for any notes of the Series B-1924 now. offered,which shall be subscribed for and allotted. ; ; . . _ . ' ' .' - A s fiscal agents,of the United States, Federal Reserve Banks are \authorized and requested to receive subsoriptions and to make allotments in full in the order of the receipt of applications u p . t o amounts indicated by the Secretary of the Treasury to the Federal Reserve Banks of the respective districts. , - ' .'. ... ,; A. W. MELLON,.. : r; . Secretary of the T r e a s u r y . . - •, T R E A S U R Y ^ ; D E P A ; R T M E N T / ''' : •-•''•:,' OFFICE OF THE SECRETARY, : ;V ' : T o THE INVESTOR:; - September 9, 1 9 2 1 . ' ' '• .'"••;•;- / ....... • . :. Almost any banking institution in the United States will handle your subscription for you, or you may make subscription direct to the Federal Reserve Bank of your district.. Your special attentioii is invited tp the terms of subscription and allotoment as-stated above. If you desire to purchase notes of the above issue after the subscriptions close, or .notes of any outstanding issue, you should make applicair tion to your own bank, or if i t can not obtain them for you, to the Federal Reserve Bankof your district. - . . : - . : EXHIBIT OFFER 15. , TO R E D E E M B E F O R E M A T U R I T Y , T R E A S U R Y CATES OF I N D E B T E D N E S S , S E R I E S E 1 9 2 1 . CERTIFI- March collections of income and profits taxes have amounted to slightly over $700,000,000 and have thus exceeded by about $125,- , 000,000 the March 15th'maiturities of principal arid interest. This margin is therefore available to meet other Treasury requirements, includirig the Treasury certificates maturirig April 15, 1921, which were oft'ered with a inaturity dhe month after the quarterly tax payment date in the expectation that they might be retired out of tax receipts. The Secretary of the Treasury has accordingly authorized the Federal Reserye Banks on and after Friday, April 1, 1921, and until further notice to redeeni in cash before April 15, 1921, at the holders^ option, at par and accrued interest to the date of such optional redemption. Treasury certificates of indebtedness of Series E-1921, maturing April 15, 1921. .; ; : ^ OFFER E X H I B I T 16. T O R E D E E M BEFORE MATURITY, TREASURY CATES OF I N D E B T E D N E S S , S E R I E S D 1 9 2 1 . . CERTIFI- Secretary Mellon announced that he has authorized the Federal Reserve Banks,on and after Saturday, April 30, 1921, and until fur> 7 0 d 7 3 — F I 1921-—.13 SECRETARY OF THE TREASURY. , 193 on later allotment.' After allotment and upoii payment Federal Reserve Banks may issue interim receipts pending delivery of t h e definitive notes. Any qualified depositary will be permitted to make payment by credit for notes allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits, when so notified by the Federal Reserve Bank of its district. , Treasury certificates of indebtedness of Series TS-1921 and Series TS2-1921, .both maturing September 15, 1921, and of Series F-1921 and Series H-192i, both maturing October 15, 1921, with any unmatured interest couporis attached, will be accepted at par, with an-adjustrnent of accrued interest, iri payment for any notes of the Series B-1924 now offered,which shall be subscribed for and allotted. ; , . • . As fiscal agents uf the United States, Federal Reserve Banks are authorized and requested to receive subscriptions and to make allotments in full in t h e order of the receipt of applications up to; amounts indicated by the Secretary of the Treasury to the Federal ' Reserve Banks of the respective districts. . ; A. W. MELLON,. : - Secretary of the Treasury. TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, , • T o THE INVESTOR: , . ~ September 9, 1 9 2 1 . ' ' • ^ Almost any banking institution in the United States will handle your subscription for you, or you may make subscriptiori direct to the Federal Reserve Bank of your district.. Your special attention is invited to the terms of subscription and allotoment as.stated above. If you desire to purchase notes of the above issue after the subscriptions close, or .notes of any outstanding issue, you should make applicar tion to your own bank, or if it can not obtain them for you, to the Federal Reserve Bank of your district. E X H I B I T 15. . OFFER TO REDEEM BEFORE MATURITY, TREASURY CERTIFICATES OF INDEBTEDNESS, S E R I E S E 1921. March collections of income and profits taxes have amounted to slightly over $700,000,000 and have thus exceeded by about $125,-, 000,000 the March 15th'maturities of principal arid interest. This margin is therefore available t o meet other Treasury requirements, includirig the. Treasury certificates maturing April 15, 1921, which were oft'ered with a'maturity one morith after the quarterly tax payment date in the expectation that they might be retired out of t a x receipts. The Secretary of the Treasury has accordingly authorized the Federal Reserve Banks on and after Friday, April 1, 1921, and until further notice to redeem in cash before April 15, 1921, at the holders' option, at par and accrued interest to the date of such optional redemptiori. Treasury certificates of indebtedness of Series E-1921, maturing April 15, 1921. ^ OFFER TO REDEEM E X H I B I T 16. BEFORE MATURITY, TREASURY . CERTIFI- CATES OF INDEBTEDNESS, S E R I E S D 1921. Secretary Mellon announced that he has authorized the Federal Reserve.Banks on and after Saturday, April 30,^ 1921, and until fur, 70073—FI 1921-—13 SECRETARY OF THE TREASURY. EXHIBIT OFFER TO REDEEM BEFORE 195 21. MATURITY, TREASURY CERTIFI- CATES OF INDEBTEDNESS, SERIES F-1921 AND H-1921. Secretary Mellon annouriced t h a t he has authorized the Federal ^ Reserve Banks ori arid after Tuesday, September 27, 1921, and until, further notice, to redeem in cash before October 15, 1921, at the holder's option, a t par and accrued interest to the date of such optional redemption. Treasury certificates of indebtedriess of Series F-1921, dated January 15, 1921, and Series H-1921, dated April 15, 1921, both maturing October 15, 1921. . \ ' ' ; •.; ' j ' " . ..;'. ' ' , - • ; : . . ' ,";; ^ E X H I B I T 22..- ; ;"--' ; • ' • , ' • " . ' . ' - -' LETTER OF SECRETARY OF THE TREASURY TO THE BANKS AND T R U S T COMPANIES OF THE COUNTRY, ACCOMPANYING THE OFFERING OF TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES TJ2-1921 AND SERIES T D - 1 9 2 1 , BOTH DATED DE• .CEMBER 1 5 , 1920.;.: - -: ' 'WA^sjiNGTOi^yT>.C., Decent •.' ' .--'V.'.""'. . ' . \ ' "'':-; About $700,000,000 of Treasury certificates of indebtedness mature on December 15, 1920, about $175,000,000 ori January 3, 1921, and about $125,000,000 addirtional on January 15, 1921. On December* 15, 1920, there will also become payable the semi-annual interest o n t h e First Liberty Loan aind the Victory Liberty Loan, aggregating about $140,000,000. The greater part of the $700,000,000 of tax certificates maturing on December 15th will be covered by the installment of income and profits taxes payable on t h a t date. In order to meet the remainder of these heavy maturities of principal and interest, and at the same time provide for the current requirements of the Government, the Treasury has decided, on the basis of the Best estimates available at this time, to offer Treasury certificates of indebtedness in the amount of $500,000,000, or thereabouts, in two series dated Deceinber 15, 1920, one series designated T J 2-1921, bearing 5f per cent interest, maturing June 15, 1921, and the other series designated TD-1921, bearing 6 per cent interest and maturing December 15, 1921. Applications for Treasury certificates of these series will be received through the several Federal Reserve Banks, from which full particulars concerning, the offering may be obtairied. Treasury certificates of the series maturirig December 15, 1920, January 3, 1921, and January 15, 1921,, will be ac- ' cepted a t par with an adjustment of accrued interest in payment for any certificates of the two series now offered which may be subscribed for and allotted. As indicated in t h e circular letter of September 7, 1920, to t h e banking institutions of the country, the operations of t h e T r e a s u r y for the first quarter of the present fiscal year, ended September 30, 1920, showed a surplus of ordinary receipts over ordinary expenditures amounting to $289,224,706.29, notwithstaiiding actual cash payments to railroads during the quarter of some $275,000,000 under the provisions of the Transportation Act, in corinection with the return of the railroads to private control. The Treasury's curre,nt operations during the months of October and Noyeriibei' show a •DEAR SIR:., 196 .REPORT. ON THE FINANCES. n e t current deficit (excess of ordinary disbursemerits over ordinary receipts) amounting to $357,134,068.15, of which about $112,000,000 represerits' payriients to the railroads urider the Transportation Act. The Treasury confideritly expepts, however, t h a t the currerit quarter, ending December 31, 1920, will still shqw a substantial surplus as the result of the quarterly paynient of iricome and profits tax:es in December. In consequence of the operations incident to the retiremerit of . the^ Treasury certificates whioh ma,tured ori September 15 and October 15, 1920, and the quarterly paymerit of income and profits taxes" ori September 15th, the gross debt of the Government on October 31) 1920^ oil the basis of daily Treasury statements, was reduced to $24,062,^509,672. 96, of which about $2,337,000,000 consisted of loan and tax certificates unmatured. On September 30^ 1920, t h e gross debt had been $24,087,356,128.65, of which about $2)347,000,000 were loan arid tax certificates unmatured. On November 30, 1920, after the issue of $232,000,000 of Treasury oertificates ori November 15th and the retiremerit on the same date of about $100,000,000 of maturing certificates, the gross debt, on the basis of daily Treasury staternents, amounted to $24,175,156,244.14, of which about $2,475,000,000 represented floating .debt (loari and tax certificates unmatured). These teiriporary increases iri both gross debt arid floating debt will^ it is expected, be more than overcome by December 31, 1920, in consequence of the December pperations, and both gross debt and floating debt should, on December 31st, be reduced below the amounts/outstandirig on September 30th. The Government's further progress in retiring the .gross debt and the floating debt will depend, of course, u p o n t h e relation between current receipts and current expenditures during the coming calendar year, but there is good reason to hope t h a t unless new burdens are iniposed by legislation, there should be important further reductions in the last two quarters of the current fiscal year, provided always t h a t tax receipts are maintained at a suffix ' cieritly high level, salvage operations vigorously pressed, and the strictest economy practiced in Government expenditure. The three months which have passed sirice the last quarterly tax payment period have been inarked by a stil! further distribution of Treasury certificates among investors and a further teduction-^ of holdings of Treasury certificates by the bank The repoTting merii^ ber banks pf t h e Federal ReservevSy.stem (about 823 meinber banks in leading cities, which are believed to control about 40 per cent of the comirierciahbahk deposits of the country and to have subscribed in the first instance for perhaps 75, per cent of the Treasury certificates of indebtedness now outstandirig) held on November 26, 1920, only ; about $313,000,000 _of Treasury certificates^ as compared with reported holdings oh August'27, 1920, of about $430,- . 000,000, and on -NoYember 28, 1919, of about $816,000,000. On December 3, 1920, the Federal Reserve Banks reported that there were pledged with Federal Reserve Bariks only about $214,000,000 of Treasury certificates to secure loans and discounts, notwithstanding the preferential rates still maintained in many of the Federal Reserve Districts and the probability t h a t borrowing banks would use Treasury certificates as convenient collateral to secure loans for commercial purposes. ' _ ' ; SECRETARY OF THE,TREASURY. 197 •The Treasury certificates of t h e two series now off ered are exempt,. likeiOther Treasury; certificates outstanding, from all State arid local , 'taxes (except estate arid inheritance taxes), and from the normal Federal income tax and the corporation income tax, and are admissible assets for the purpose of calculating profits taxes.; The certificates how offered are also acceptable in payment of Federal incoirie and profits taxes payable at their respective maturities, and the United States reserves n o o p t i o n to call them for redemption before riiaturity. With these features, the attractive rates of iriterest, arid absolute security of principal and interest, these certificates are extremely desirable investments . and should prove, particularly attractive to taxpayers having taxes to pay in the calendar year 1921, as well as to persoris having idle funds awaiting investment. In these circumstances, the Treasury believes t h a t banking institutions genera,lly should feel free to enter subsGriptions for the two issues now offered with the confident expectation of prompt resale for investment, and urges them,. as iri the past, to -.^ subscribe liberally for the certificates and devote their best efforts to obtain the widest possible distribution among mvestors. ; ' ; Cordially yours, - , : ••;• . _ • ; ' •-•, ;"';..'- ;-••;••:•••- •• ' - •• - •' • ' • • / • •"; / .-. -• ^Dv F . ^ ' H O U S T O N , ; . ' • . • • • ; ..'.'..••.'•; Secretary. • T O THE PRESIDENT OF THE BANK OR T R U S T COMPANY ADDRESSED; EXHIBIT 23. L E T T E R OF S E C R E T A R Y OF T H E TREASTJRY TO T H E B A N K S A N D "TRUST COMPANIES OF THE COUNTRY, ACCOMPANYING T H E . ' O F F E R I N G OF T R E A S U R Y CERTIFICATES OF I N D E B T E D N E S S ' O F SERIES TS2-1921 AND SERIES TM-1922, BOTH DATED MARCH 15,. 1 9 2 1 . .;, :• •••-•••"•• ; > • • -. • .:.;•; ; DEAR SIR: ...'..;-'-- . •-v \ ' . - '-• . / -J- '' •'. ,• At the outset of my adiriinistration of the Treasury I aria addressing this letter to the banking institutions of the country to inform them of the state of the Nation's finances,, the probable requirements of the Treasury for the coming months, and its financial plans for the immediate future. * ' About $500,000,000 of Treasury certificates of indebtedness mature on March 15) 1921, and about $118,000,000 additional on April 15, 1921. On March 15, 1921, there will become payable the seini, annual interest on the Third Liberty ;Loari, amounting to about $75,000,000. The Treasury must also make large payments under the recent legislation authorizing partial payinents on account of the railroad guaranty, which may amount to as much as $200,000)000 .during the course of the next inonth. I n order to meet these heavy requirements and at the same time provide for the current expenses of the Government, the Treasury relies in l a r g e p a r t upon the quarterly instalhrient of income and profits taxes due March 15, 1921. Advance payments of March taxes have been up to expectations, and though i t is impossible to forecast the results with certainty,'^ : the Treasury has good reason to hope that income and profits t a x payments during March will about balance the March 15 maturities; ,198 - R E P O R T ON T H E FINANCES. of principal and interest. To provide fOr its further requiremerits, the Treasury has decided, ori the basis of the best available estimates, to offer Treasury certificates of indebtedness in the amourit of $400,000,000, or thereabouts, in two series, both dated March 15, 1921, one series designated T S 2-1921, bearing 5-| per cent interest, maturing September 15, 1921, and the other series designated T M-1922, bearing 5 | per cent interest and maturing March 15, 1922. Apphcations for Treasury certificates of these series will be received in regular course through the several Federal Reserve Banks, as fiscal agents of the United States, from which full particulars concerning the offering may be obtained. Treasury certificates of the series which inature on March 15, 1921, and April 15, 1921, will be accepted at par with an adjustment of accrued interest in payment for any certificates of the two series now offered which may be subscribed . for and allotted. . On t h e basis of the Treasury Daily Statements, the current operations of the Government during the first eight months of the fiscal year through February 28, 1921, show a net current surplus (excess of ordinary receipts over ordinary disbursements) amounting t o ' $186,115,505.53. This'showing is particularly encouraging in view of ; t h e fact that during these eight months, there have been extraordinarily heavy expenditures but only two quarterly payments of income and profits taxes. Ordinary receipts up to February 28, 1921, have amounted to $3,433,411,141.36, as.against ordinary dis' bursements during the same period of $3,247,295,635.83 (or at the rate of almost 5 billions a ,year). Of these disbursements about $750,000,000 have represented expenditures of the War Department, about $450,000,000 expenditures of the Navy Department, about $475,000,000 payments to the railroads under the Transportation Act, 1920, and about $550,000,000 payments of interest on the public , debt—a total of about $2,225,000,000 under these four main headings.. I n the four months which remain of the fiscal year there will be two further quarterly payments of income and profits taxes, both based on the busiriess of the calendar year 1920. While it is impossible to estimate these tax payments with accuracy,: and the prospects are t h a t expenditures will continue heavy for some time to come, the Treasury expects that the operations of the first three quarters of the year, through March 31', 1921, as well as the completed year's operations,, will show some surplus of receipts over expenditures. The gross debt of the Government on February 28, 1921, amounted to $24,051,684,728.28, on the basis of Treasury Daily Statements, while on the same date the floating debt (loan and tax certificates unmatured) amounted to $2,484,032,000. These figures contrast with a gross debt on December 31, 1920, of $23,982,224,168.16, and a floating debt on the sarrie date of $2,300,656,000. As a result of the Treasury's operations on March 15, 1921, these increases in gross debt and floating debt (which are to be expected in the odd months when no quarterly income and profits tax payments are made) should be largely offset and perhaps overcome. ^The progress to be made during the balance of the current year in the retirement of gross debt and floating debt will depend, of. course, upon the extent of the de- riaands made upon the Treasury and the volume of its receipts from taxes and salvage. This progress is likely to be seriously limited by reason of the heavy railroad payments to be expected during the next t\yo or three months. , ^^:'_ ' \ SECRETARY OF THE TREASURY. 199 These figures as to the publie debt and the current operations of the Treasury show t h a t the country's finances are sound, but t h a t thelsitusd^iori oa^^ utinost economy. The Natiori can not afford extrayagaince, and; so far^a possible it m u s t s avoid entering ( upoii new fields of expenditure. The heavy requirements of the Governmerit on account of necessary experiditures, including iriterest and sinking fund on the publie debt, and the maturity of 1 \ billions of short-dated debt within the next two years or thereabouts make it iihperatiye that the greatest care arid economy be exercised in matters affectirig Government expenditure, The people gerierally must become more interested in saving the Government's money than in spending it. A thoroiighgoing National budget system must be established, arid the Government's expenses brought into relation to its income^: ' ' The period which has elapsed since the last quarterly installment of ihcoirie and profits taxes has been marked b y important developriients iri the market for Treasury certificates of indebtedness. On January 15j 1921, the Treasury successfully sold an offering of threemonths ,5^ per cent certificates and nine-months 5f per cent certificates. On February 15, 1921, an offering of five-months 5^ per cent certificates was likewise promptly oversubscribed. Treasury certificates of indebtedriess now enjoy a broad and active market, on a straight investment basis, and all issues now outstanding are quoted in the. open market either at par or at a premium. The last three moriths have also been marked by still further distribution of Treasury, certificates among investors and a reduction in holdings of Treasury certificates by banks. The reporting member banks of the Federal Reserve System (about 825 banks in leading cities, which are believed to control about 40 pet cent of the commercial bank resources of the country and to have subscribed in the first instance for about 75 per cent of the Treasury certificates of indebtedness now outstandiug) held ori February 25, 1921, only about $235,000,000 of Treasury certificates as compared with reported holdings on Novemb e r 26, 1920, of about $313,000,000, and on February 27, 1920, of about $673,000,000. On March 4, 1921, the Federal Reserve Board reported that there were pledged with the Federal Reserve Banks only about $110,000,000 of Treasury certificates to secure loans and discounts, orless than 5 per cent of the aggregate amount of loan and tax certificates then outstanding. These figures strikingly show the success of the efforts which have been made for the past year or more to secure distribution of Treasury certificates among real investors, and to keep them out of the banks. , The two series of six months and twelve months certificates now offered are both acceptable in payment of income and profits taxes, and should prove peculiarly attractive to taxpayers as well as to persons having idle funds awaiting investinent. 1 Imow t h a t I can : count, like my predecessors in office, on your hearty cooperation in the distribution and sale of Treasury certificates, arid hope that, as iri the past, you will subscribe liberally in the first instance for the certificates and use your best efforts to resell them to investors. . Cordially yours, -".'•'• . : • , ' • ' " " , - '' • • A. W. MELLON, ' Secretary ofthe Treasury. To THE PRESIDENT OF THE BANK OR T R U S T COMPANY ADDRESSED. 200 REPORT ON THE FINANCES. \ EXHIBIT ' , ^ 24. LETTER OF SECRETARY OF THE TREASURY TO THE BANKS AND TRUST COMPANIES OF THE COUNTRY, ACCOMPANYING THE . OFFERING OF TREASURY CERTIFICATES OF INDEBTEDNESS, S E R I E S T J-1922, AND TREASURY NOTES, SERIES A-1924, BOTH DATED JUNE 15, 1921. DEAR SIR: In accordance with the Treasury's practice to advise the banking institutions of the country from time to time of its plans and policies, I am addressing this letter to you in order to inf orm you of the state of the National finances and indicate the Treasury's financial program for the immediate future. : The condition of the Treasury, its estimates of receipts and experiditures for the fiscal years 1921 and 1922, and its recommendations as to the revision of the internal t a x laws have recently been set forth at some length in my letter of 'April 30, 1921, to the Chairman of the Committee on Ways, and Means, a copy of which has been sent you. ' In that letter I announced also that it would be the Treasury's policy to vary its monthly offerings of Treasury certificates of indebtedness from time to time with issues of short-term notes in moderate amounts with maturities of from three to five years, with a view to the gradual distribution of the short-dated debt through successive issues of notes in convenient maturities extending over the period from 1923 to 1928. Pursuant to this program, the Treasury is announcing to-day a' combined offering of three-year 5 | per cent Treasury riotes, dated June 15, 1921, due June 15, 1924, and one-year 5^ per cent Treasury certificates of indebtedness, dated June 15, 1921, due June 15, 1922. The combined offering will be for $500,000,000, or thereabouts. The Treasury notes thus offered will be straight three-year notes, designated Treasury Notes of Series A-1924, will not be subject to call for redemption before maturity, and will be acceptable in payment of iricome and profits taxes payable at or within six months before maturity. The notes are exempt from the normal Federal income tax and the corporation income tax and from all State and local taxation (except estate and inheritarice taxes), but not from Federal income surtaxes or profits taxes. The Treasury certificates will be tax certificates, designated Series T J-1922, and will be acceptable in payment of income and profits taxes payable at maturity. Definitive notes and certificates will, it is expected, be available for delivery on or about June 15th, but wherever necessary Federal Reserve Banks will be prepared t o issue interim receipts pending delivery of the definitive securities. Applications for the notes and certificates will be received in regular course through the several FederahReserve Banks, as fiscal agents of the United States, from which full particulars concerning the offering may be obtained. Banking institutions which are duly qualified as special depositaries of public moneys will be permitted to make payment by credit upon the usual terms for notes and certificates allotted to them for themselves and their customers. Treasury certificates of indebtedness of the series which'mature on June 15, 1921, July 15, 1921, and August 16, 1921, willbe accepted at par with an adjustment ot accrued interest in pajrment for any notes or certificates of the series now offered which may be subscribed for and allotted. \ SECRETARY OF THE TREASURY. A 201 Treasury certificates of indebtedness: to the amount-of about $430,000,000 mature On June 15) 1921, and on the same date th^re will becorrie payable the semiannuaLinterest ori the First Liberty Loan and the Victory Liberty Loan, amounting in the aggregate t o about $130,000,000. On July 15, 1921, there will mature aBout $132,000,000, and on August 16, 1921, about $156,000,000 of additional Treasury eertificates. Against; these heavy maturities of principal and interest the Treasury expects to receive during June about $57-5,000^000 on account of the quarterly payment of income and profits taxes. To provide for its further requiremerits, including current disbursements and increased payments incident to the close of the fiscal.yeai*) the Treasury will need in the neighborhood of $500,000)000, and; has therefore decided to make the combined offering of riotes and certificates above described. • ' In-consequerice of t h e issue of Treasury notes: and Treasury cer-, tificates'On June 15th, and the retirement of maturing Treasury certificates, the Treasury expects to show important progress in the execution of its plan to inake the short-dated debt more manageable and gradually distribute i t over the period from 1923 to 1928. The Victory Liherty Loan, which matures on May 20, 1923, amounted _ when originally issued to $4,495,374,300. Through the operation of!, the bond purchase fund and the cumulative sinking fund, and the miscellaneous retirements of the public debt, the amount of Victory notes outstanding on May 31, 1921, had been reduced to $4,022,116,-\ 555, according to the preliminary statement of the public debt for that dale. This means a total reduction to date in the amount of the Victory Loan of about half a billion dollars^ As similar retirements of Victory notes are effected from time to time pursuant to the Treasury's program, there should be important further reductions in the Victory Loan maturity. The result of this and succeeding issues of short-term notes, and of the debt retirements which the Treasury expects to make frorii time to time out of its current surplus, should be to spread the 7^ billions of short-dated debt, which is now .con- . ceritrated in relatively few maturities, into a progressively smaller aggregate amount of better diversified maturities extending over the period from 1923 to 1928. The current operations of the Government duririg the first eleven months, of the fiscal year, through May 31, 1921^ show^ a net currerit surplus (excess of ordinary receipts over ordinary "disbursements) amounting to $228,602,077.55. During June there will be paid the second quarterly installment of income and profits taxes for the^ calendar year. The result of the coinpleted fiscal year's Operations,, according to the best information now available, should be a net current surplus of about $500,000,00*0, substantially in accordance with the estimates set forth in the letter of April 30th to the Chairinan of the Committee on Ways and Mearis. This current surplus will have been applied foi^ the most part to the retirement of the shortdated debt, chiefly through the operation of the cumulative sinking fund, t h e current redemptions oi War-Savirigs securities, and the wiseellaneous retirements of the public debt required to be made by ^alm. The gross debt of the Government on May 31, 1921, on the basis of: daily Treasury statements, amounted to $23,952,741,592.43, of which about $7,558,447,589.40 represents short-dated debt. These figure's 202 ' REPORT ON THE FINANCES, contrast with a g r o s s debt at the beginning of the fiscal year 1921 of $24,29^,a21,467;07) of which $7,844,052,732.09 constituted shortdated debt: This ineans that in the first eleven months of the fiscal year there has beeri a reduction in the gross debt of about $350,000^,^^^^ ' of which substaritially the whole amount represents retirement of short-dated debt. When the operations incident to the June 15th offering of notes and certificates and the quarterly payment of incorne and profits taxes on the same= date shall have been coinpleted, there should be important further reductions in the gross debt and the short-dated debt, as well as better distribution of the short-dated debt. •vV\;.. • : ^ ; ; •.•.;•; - • : • . ; : ^ . - - •-y.^:'.'•---:;.•• r.:'- -:: • •;,•,,-•: The progress of these operations and the development of the Treasury's program for dealing with the short-dated debt should mean improved market conditions for Government securities. Treasury certificates of indebtedness already enjoy a countrywide investririerit market, and the last three months have been marked by continued improvement in their distribution. The past three offerings of Treasury certificates have been proriiptly oversubscribed. On March 15, 1921, the Treasury; successfully sold an offering, of six months 5J per cent certificates arid one year 5i per cent certificates. On April 15, 1921,: an offering of six moriths 5J; per cent certificates was quickly absorbed. On May 16, 1921) theTreasury sold an offering, of nine-months 5 | per cent certificates) with the largest oversubscription yet received. The market for outstanding Treasury certificates;has continued strong and active, and all issues now outstanding are quoted i n t h e open market at a preiniuni. The wide distribution bf the eertificates among investors is particularly noteworthy.. On May 25, 1921, according to the latest report from the Federal Reserve Board, the reporting member banks of the Federal Reserve System held only about $203,000,000 of Treasury certificates as against $235,000,000 on February 25, 1921, and $609,000,000 on May 28, 1920. On May 25, 1921, only about $55,000)000 of Treasury certificates were pledged with the Federal Reserve Banks to secure loaris and discounts/ Substantial progress has also been made in the distribution of Victory notes among investors. According to the latest figures, the reporting member banks of the Federal Reserve System held on May 25, 1921, only $18:8,000,000 of Victory notes out of about $4,000,000,000 outstanding.: The market position Of Victory notes has correspondingly improved, and should show further improvement as the maturity of the notes approaches arid is gradually distributed. The fortunate position of the market for Treasury certificates is due in no small measure to the constant cooperation which the Treasury has had from the bariking institutions of the country in the distribution of certificates among investors. Upon this first Offering of short-term notes in pursuance of the Treasury's new program I look forward with confidence to your continued cooperation and support, and hope.that) as with Treasury certificates, you will subscribe ' liberally for the new Treasury notes and devote your best efforts to their resale to ultimate'investors. Cordially yours,: / . .^ , A.-W. MELLON, ..'•- Secretary of the Treasury. To THE , PRESIDENT OF THE ..• BANK : OR T R U S T C O M P A N Y ADDRESSED, o^ ' • \ ; • : - ' • , ~' • . • : •• . - • • •;^ . ; • •; . " -4 • • . ' • ; ^ SECRETARY OF T H E T R E A S U R Y . '•'::•• ••ExHiBiT\2&.''' :" .; / 203 ;;•'. ' L E T T E R O F S E C R E T A R Y O F T H E T R E A S U R Y T O THE^^B T R U S T COMPANIES O F T H E COUNTRY, ACCOMPANYING T H E OFFERING OF TREASURY CERTIFIC ATE S OF INDEBTEDNESS, S E R I E S TM3-1922 A N D TS-1922f A N D T R E A S U R Y NOTES, SERIES B-1924, ALL DATED SEPTEMBER 15, 1921. D E A R ; S I R : / ' ; ; ' ••.:•• • , • - ' ' ' • . , ' ' ' ' ' . ' . ' • • ' . • " • • " - " • •-^'•••.. With the announcement of the second issue of short-term Treasury notes pursuant to the prograin for handling the short-dated •deM outlined in my letter of April 30, 1921, to the chairman of the Committee on Ways arid Means, r airi writing to inforrii yOu of the state of the finances and the development of the Treasury's financial program.Treasury certificates of indebtedness to the amount of about $535,000,000 will mature on September 15, 1921, and abOut $382,000,000 additional certificates will mature on Gctober 15,1921. On September 15, 1921, there will also become payable the seiniannual interest ori the Third Liberty Loari) which with other interest maturing on that date will ainount toabout $100)000,000; while on October 15^ 1921, there will become payable seiniannual iriterest on the PourtK Liberty Loan: and other iriterest aggregating about $145,000,060. These maturities of priricipal and interest amount to over $1,150,000,000. Against these payments the Treasury expects to receive duririg September about $525,000,000 on account of the quarteily paymerit of income and profits taxes, in addition to Ordinary revenues, frona, other sources. The current .operations of the Goverriment for thp first two months of the currerit fiscal year through August 31, 1921, on the basis of the Trea'^ury daily statements, show a net currerit deficit (excess of ordinary disbursements over ordinary receipts) of; $161,464,774.96. With the payment of income and profits taxes in September, however, there should be, according to the best information now available, a small net current surplus ior the quarter. To provide for its further requireirierits, including current disbursements, and in furtherance of its announced plan for dealing with the short-dated debt, the Treasury is announcing to-day an offering of three-year 5J per cent Treasury notes dated September 15,1921, due September 15, 1924, and of one-year 5i per cent Treasury certificates of indebtedness dated Septeinber 15, 1921, due September 15, 1922, and six months 5 per cent Treasury certificates dated September 15, 1921, due March 15, 1922. The combined offering is for $66o,000,000, or thereabouts. The Treasury notes will be designated Treasury notes of Series B-1924, and like those of Series A-1924, offered in! June, will be straight three-year notes, will not be subject to call for redemption before inaturity, and will be acceptable in payment of income and profits taxes payable at or within six months before maturity. The notes will be exempt from the normal Federal income tax and the corporation income tax and from all State arid local taxation (except estate and inheritance taxes), but not from Federal income surtaxes or profits taxes. The Treasury certificates will be tax certificates, designated Series TS-1922 arid Series TM3-1922, respectively, and will be acceptable in payment of income and profits taxes payable at inaturity. Definitive notes: and certificates will, it is expected, be avaiUble for delivery on or about September 15th, but wherever necessary Federal Reserve Banks will be prepared to issue interim receipts pending delivery of the definitive securities. 204: . REPORT; ON THE FINANCES. ,^ ~ 'Applications for the notes and; certificates will be received in regular course through the several Federal Reserve Banks, as fiscal agents of the United States, from which full particulars concerning the offering may be obtained. Bankihg institutions which are duly qualified as special depositaries of publie moneys will be permitted to make payment by credit upon the usual terms for notes and certificates allotted to them for themselves and their customers. _ Treasury certificates of indebtedness of the series w h i c h ' m a t u r e " , Septeinber 15) 1921, and October 15, 1921, will be aceepted at.par, with an adjustmerit: of accrued interest, in payment for any notes or certificates of the series now offered which may be subscribed for and allotted/; ; With t h e completion of t h e September i 5 t h operations, the Treasury expects to show further substaritial progress in the executiori of its plans for distributing the short-dated deb t o y e r the period from 1923 to 1928. ./This program was successfully launched with the first offering ,of Treasury notes in June, and is more fully described in m y letter of June 8th to the bankirig institutions of the country. The notes then offered immediately proved attractive to investors, and from the outset have enjoyed a broad and active market, which has greatly facilitated their secondary distribution by .subscribing bariks. According to the latest reports of the Federal Reserve Board, only $52,019,0Q0:of thq $311,191,600 Of Treasury notes issued on June 15th;were held by the reporting member banks of the Federal Reserve system on August 24, 1921, and on August 31, 1921, only $3,200,000 were pledged with the Federal Reserve Banks to secure loans and discounts. The market for Treasury certificates has likewise continued to develop. The latest reports from the Federal Reserve Board show that on August 24, 1921, reporting member banks held only $171,383,000 of Treasury certificates, as agairist $203,000,000 on May 25, 1921, and $235,000,000 on February 25,1921, and t h a t on August 31, 1921, only $26,800,000 of the $2,542,000,000 loan and tax certificates Outstanding were pledged with Federal Reserve Banks to secure loans and discounts, as against $53,400,000 on May 25, 1921. . Important.progress has also been made in the distribution of the Victory Liberty Loan maturity. The amount of Victory notes outstanding has been reduced from $4,022,116,555 on May 31, 1921, to $3,806,172,250 on August 31, 1921, on the basis of Treasury daily statements. The. amount of Victory riotes Originally issued was $4,495,374,300, so that this represents a total reduction of about^ $689,000,000.. These satisfactory results have been due in no small measure to the effective cooperatiori of the bankirig institutions of the country in the distribution of short-term Treasury securities among investors. ' I am confident that the Treasury can count On your continued copperatioii and/suppOrt in the furtherance of its plans for dealing with the short-dated debt, and hope t h a t you will subscribe liberally for the new issues and continue your successful efforts to distribute ; them among inyestors. Cordially yours, ^ ;': - A.,;W. M E L L O N , - ' , » "'' Secretary of the Treasury. , T O THE P R E S I D E N T OF T H i ^ / B A N K OR T R U S T C O M P A N Y ADDRESSED. , . EXHIBIT 26." STATEMENT OF THE PUBLIC DEBT OF THE UNITED STATES, JUNE 30, 1921. AiTiOun t i s s u e d . • Amount outstanding. A m o u n t retired. INTEREST-BEARING DEBT. Bonds: • • • • ' • • . •' ' 2 % consols of 1930.... . . . . . . - . : . . . . . . . . : . . J.: 4 % l o a n of 1 9 2 5 . . . . . . . . . . : . . . . . . . ; \ - . - : . . . . - . . ; ^ : 2 % P a n a m a s of 1 9 1 6 - 1 9 3 6 . . . . . . . . . . . . . . . . . . ' . . . . : 2 % P a n a m a s of 1 9 1 8 - 1 9 3 8 . . . . . . . . : . ; : . . . ' . . . : . ' . . : . 3 % P a n a m a s of 1 9 6 1 . . :..::.....:. 3 % c o n v e r s i o n b o n d s of 1 9 4 6 - 4 7 . . . . . . . : . . . 1 . 2h% p o s t a l savings b o n d s (1st t o 20th s e r i e s ) . . . . . $646,250,150.00 162,315,400.00 54,631,980.00 30,000,000.00 50,000,000.00 28,894,500.00 11,718,240.00 $599,724,050.00 118,489,900.00 48,954,180.00 25,947; 400. 00 50,000,000.00 28,894,500.00 11„718,240.00. $46,526,100. 00 43,825,500. OO 5,677,800.00 4,052,600.00 $883,728,270.00 First Liberty loan. . 3 ^ % b o n d s of 1932-1947.. .......: C o n v e r t e d 4 % b o n d s bf 1932-1947 C o n v e r t e d 4 i % b o n d s of 1932-1947 Second c o n v e r t e d 4 i % b o n d s of 1932-1947.".. .1,989,455,550.00 37,196,750.00 $1,410,074,250.00 17,982,800.00 '520,709,600.00 J • 3,492,1501 00 d 1,952,258,800.00 Second L i b e r t y l o a n : 4 % b o n d s of 1927-1942...... J . . . . . . . C o n v e r t e d 4 i % b o n d s of 1927-1942.. 3,807,865,000.00 ^491,328,450.00. 77,870,150.00 3,238,666,400.00 3,316,536,550.00 T h i r d L i b e r t y loan— 4 i % b o n d s of 1 9 2 8 . . . . : . . ; . . . . . . : . . . F o u r t h L i b e r t y loan— 4 i % b o n d s of 1 9 3 3 - 1 9 3 8 . . . . . . . . . . . . . 4,175,650,050.00 5'64,089,750.00 3,611,560,300.00 6,964,581,100.00 609,720,750.00 6,354,860,350.00 Treasury n o t e s ^ ' Series A - 1 9 2 4 . . . '. 4,495,374,300.00 581,593,950.00 w > 15,235,216,000.00 Notes: Victory Liberty l o a n . . . . 4 | % n o t e s of 1922-23. 3f% n o t e s of 1922-23. • • V \ . ' • w 3,272,852,350. 00 640,928,000.00 3,913,780,350.00' 311,191,600.00 311,191,600.00 311,191,600.00 Certificates of i n d e b t e d n e s s : Series T S - 1 9 2 1 . . . . . . ' . Series TD-1921 SeriesTS-2-1921 Series T M - 1 9 2 2 . . . . . . Series T J - 1 9 2 2 . . 341,969,500.00 401,557,500.00 193,302,000.00 288,501,000.00 314,184,000.00 12,000,000.00 341,969,500.00 389,557,500.00 193,302,000.-00 288,501,000.00 314,184,000.00 1,527,514,000.00 •fcO Or Statement of• the public debt of the United States, June 30, 1921—Continued. Amountissued. fcO o Amount outstanding. Amount retired. INTEREST-BEARING DEBT—Continued. Certificates of indebtedness—Continued. LoanSeries C-1921.. . •Series F-1921 Series G-1921 .'. Series H-1921 Series A-1922 .........:...... Pittman Act. Special War savings securities: i War savings certificates. Series 1918.. War savings certificates, Series 1919.. War savings certificates. Series 1920.. War savings certiflcates, Series 1921.. Thrift stamips, unclassified sales, etc. $157,654,500.00 192,026,500.00 : 132,886,500.00 190,511,500.00 256,170,000. 00 $2,162,000.00 * "4* 656,'OOO." 65" $155,492,500.00 192,026,500.00 128,886,500.00 190,511,500. 00 256,170,000. 00 259,375,000.00 32,854,450.00 43,500,000.00 $923,087,000.00 215,875,000.00 32,854,450.00 1,022,111,069.18 102,647,331.49 41,997,762.43 13,271,909.32 10,6473 753.00 441,935,485.16 40,156,390.11 13,071,965.37 1,406,461.41 113.00 580,175,584.02 62,490,941.38 28,925,797.06 11,865,447.91 10,647,640.00 $2,699,330,450.00 H O •M 694,105,410.37 Total interest-beariag debt outstanding.. > Funded loan of 1891, continued at 2%, called for redemption May 18, 1900, interest ceased Aug. 18,1900...." : Funded loan of 1891, matured Sept. 2,1891... Loan of 1904, matured Feb. 2,1904........." Funded loan of 1907, matured July 2,1907..' : Refunding certificates, matured July 1,1907...... Old debt matured at various dates prior to Jan. 1, 1891, and otheritems of debt matured at various dates subsequent to Jan. 1,1861. Certificates of indebtedness, at various interest rates, matured 1 Loan of 1908-1918... ......:............ o 1,000.00 19,800.00 13,050.00 380,800.00 10,350.00 Ul 893,960.26 9,244,000.00 376,660.00 Total matured debt outstanding on which interest has ceased.. 10,939,620.26 DEBT BEARING NO INTEREST—PAYABLE ON PRESENTATION. H 23,737,352,080.37 MATURED DEBT ON WHICH INTEREST HAS CEASED—PAYABLE ON PRESENTATION. Obligations required to be reissued when redeemed: UJnited n " ' ' States "• • notes., Less gold reserve.... O 346,681,016.00 152,979,025.63 193,701,990.37 Obligations that wiU be retired on presentation: Old demand notes National bank notes and Federal reserve bank notes assumed by the United States on deposit of lawful money for their retirement Fractional currency Total debt bearing no interest outstanding ; .... Total gross debt 2 Matured interest obligations, etc.: Matured interest obligations outstanding Discount accrued (partly estimated) on war savings securities, Series of 1918 3 Discount accrued (partly estimated) on war savings securities, Series of 19193 Treasury warrants outstanding Disbursing officers' checks outstanding Balance held by the Treasurer of the United States as per daily Treasury statement for June 30,1921 Deduct: Net excess of disbursements over receipts in June reports subsequently received Net debt, including matured interest obligations, etc.^ 53.012.50^ 32,204,594.00 1,999,310.90 • 227,958,907.77 23,976,250,608.40 99,497,510.22 95,273,993.11 6,640,184.50 21,584,162. 21 147,199,302.25 Ul 370,195,152. 29 24,346,445,760.69 H 549,678,105.76 16,779,775.99 532,898,329.77 O 23,813,547,430.92 1 Amounts issued of the series of 1918 and 1919 are on basis of reports of sales; amounts issued of the series of 1920 and 1921 are on basis of cash receipts by Treasurer of the United States, and include receipts from sales of thrift stamps and Treasury savings stamps. 2 The total gross debt June 30, 1921, on the basis of daily Treasury statements, was $23,977,450,552.54, and the net amount of public debt redemptions and receipts in transit, etc., was $1,199,944.14. 3 Accrued discount calculated on basis of exact accrual at rate of 4 per cent per annum compounded quarterly, with due allowance for cash redemptions to date. <NO deduction is made onaccount of obligations of foreign Governments or other investments. • • Issues of soldiers' and sailors' civil relief bonds not included in the above: Total issue to June 30,1921, was $195,500, of which $141,700 has been retired. O Pi Ul d bO o bO Detail of outstanding interest-bearing issues; June 30, 1921. o 00 Authorizing act. Title. Prewar loans: Consols of 1930Loan of 1925. Panama Canal loan of 1936.. Panama Canal loan of 1938.. Panama Canal loan of 1961.. Conversion bonds.. Postal savings bonds (1st to 20th series). War loans: First Liberty loan— 3^% bonds of 1932-1947 Converted 4% bonds of 1932-1947.... Converted 4\% bonds of 1932-1947... Second converted 4|% bonds of 19321947. Second Liberty loan— 4% bonds of 1927-1942..: Converted 4J% bonds of 1927-1942... . Third Liberty loan— 41% bonds of 1928 Fourth Liberty loan— 41% bonds of 1933-1938 Victory Liberty loan— 4|% Victory notes of 1922-1923 3f % Victory notes of 1922-1923...... Treasury notes: Series A-1924 Certificates of indebtedness: Loan— Series C-1921 Series F-1921 : Series G-1921 Series H-1921 Series A-1922 Series TS-1921 ." Mar. 14, 1900 Jan. 14, 1875 June 28," 1902, and Dec. 21, 1905. do Aug. 5,1909, Feb. 4,1910, and Mar. 2, 1911. Dec.23, 1913 June 25, 1910...; Rate of interest. Date of issue. When redeemable or payable. Payable after Apr. 1, 1930 Payable after Feb. 1,1925 /Redeemable after Aug. 1,1916 \Payable Aug. 1, 1936 /Redeemable after Nov. 1, 1918 \PayableNov. 1, 1938 Payable June 1, 1961 Interest payable. Jan. 1, Apr. 1, July 1, Oct. 1. Feb. ], May 1, Aug. 1, Nov. 1. Do. 2%-4%.. 2%.. Apr. 1, 1900., F e b . l , 1895., Aug. 1, 1906. 2%.. 3%.. Nov. 1, 1908. J u n e l , 1911. 3%.. Payable 30 years from date of issue.. Jan. 1,1916-1917.... /Redeemable 1 year from date of issue. Jan. 1, iipr. i, Juiy i, wc J a n . l , J u l y l , 1911-1921 \Payable 20 years from issue ,. }jan. 1, July 1. . 2^%- Apr.24, 1917 3i%Apr. 24, 1917; Sept. 24, 1917., 4 % - . Apr. 24, 1917; Sept. 24,1917, 4 i % . as amended. Apr. 24, 1917; Sept. 24, 1917. mo- June 15, 1917. Nov.15, 1917. May 9, 1918... Sept. 24, 1917 Sept. 24, 1917, as amended.. .do.. Nov. 15, 1917. May 9, 1918... 4%.. 4\%. 4\%. ^ Do. Mar. 1, June 1, Sept. 1, Dec. 1. ! Redeemable on or after June 15,1932. jjune 15, Dec. 15. [Payable June 15, 1947 O pi H O H Oct. 24, 1918.. do IRedeemable on or after Nov. 15,1927. JMay 15, Nov. 15. (Payable Nov. 15, 1942 Mar. 15, Sept. 15. Payable Sept. 15,1928 .do.. 4i%- Oct. 24,1918.. /Redeemable on or after Oct. 15,1933. JApr. 15, Oct. 15. \Payable Oct. 15, 1938 .do., .do.. 4f%. 31%- May 20, 1919.. do \Redeemable June 15 or Dec. 15,1922. }June 15, Dec. 15. /Payable May 20, 1923 .do.. 5f%. June 15, 1921. June 15,1924 .do., .do., .do., .do., .do.. 6%-. mc Aug. 16, 1920-. Jan. 15, 1921... Feb. 15, 1921.. Apr. 15, 1921.. May 16, 1921... Aug. 16,1921 Oct. 15, 1921-.: July 15, 1921 Oct. 15, 1921 Feb.16, 1922 -do-. 6%.- Sept. 15, 1920.. Sept. 15, 1921 5i%.. 5\%. 5i%- . , Dec. 15, June 15. Feb. 16, Aug. 16. At maturity. Do. Do. Nov. 16, Feb. 16. '. :.-. Mar. 15, Sept. 15. r—i > o Ul .do., ^%.do., •f%.do., .do.. Sept. 24, 1917, 'as amended and Apr. 23, 1918. Sept; 24,. 1917, as amended... Various. Series TD-1921.. Series TS-2-1921Series TM-1922.. Series TJ-1922... Pittman Act o Special issues. CO War savings securities T. .do.. Soldiers' and sailors' civil reUef bonds.. ' rf^ '4% Mar. 8, 1918. 3^% Dec. 15,1920... Mar. 15, 1921... ....do June 15, 1921... Various dates. 1919. Various dates.. Jan.2, 1918 Jan.2, 1919 Jan.2, 1920 Jan.2, 1921 July 1,1918 Dec. 15,1921 June 15, Dec. 15. Sept. 15, 1921 At maturity. Sept. 15, Mar. 15. Mar. 15, 1922 Dec. 15, June 15. June 15, 1922 One year from date of issue or renewa Jan. 1, July 1. At maturity At maturity. Payable Jan. 1,1923 Payable Jan. 1,1924..; Do. Payable Jan. 1, 1925 Payable Jan. 1,1926 Mature July 1,1928; may be called 1 Jan. 1, July 1. year after termination of war. 1 If held to maturity War savings securities yield interest at rate 4 per cent per annum compounded quarterly for the average period to maturity on the average issue price. Thrift stamps and Treasury savings stamps do not bear interest, " ' " . • • • - Ul O pi > Pi O wH Pi .> Ul a to O CO . STATEMENT OF SECURITIES OWNED BY THE UNITED STATES GOVERNMENT, JUNE 30, 1921. [Compiled from latest reports received by the Treasury.] Obligations of foreign Governments, under authority of acts approved Apr. 24,1917, and Sept. 24,1917, as amended (on basis of cash advances, less repayments of principal): Belgium ,. $347,691,566.23 Italy. $1,648,034,050.90 Cuba '. 8,575,000.00 Liberia 26,000.00 Rumania 23,205,819.52 . Czechoslovakia .• 61,256,206.74 Russia 187,729,750.00 France : 2,950,762,938.19 Serbia : : 26,175,139.22 Great Britain.: 4,166,318,358.44 Greece .' 15,000,000.00 1,434,774,829.24 Total. Foreign obligations received from the Secretary of War on account of sale of surplus war supphes: $4,1.59,491.96 Lithuania., Belgium $27,588, 581.14 57,369,610. 59 Czechoslovakia. 20,621,994.54 Poland 12,922,675.42 Esthonia , 12,213,377.88 Rumania.; 406,082. 30 Russia France...: 400,000,000.00 24,978,020.99 Serbs, Croats, and Slovenes. Latvia 2, 521,869.32 562, 781,704.14 Total.. Foreign obligations received from the Secretary of the Navy on account of sale of surplus war supphes: Poland ,...: 266,709.66 Foreign obligations received from the American Rehef Administration on account of rehef pursuant to act approved Feb. 25, 1919: $2,610,417.82 Arra enia $8,028,412.15 Latvia 822,136.07 Czechoslovakia 6,428,089.19 Lithuania. 51,671,749.36 Esthonia : 1,785,767.72 Poland 4,465,465.07 Fmland 8,281,926.17 Russia [, 093,963.55 Total.. Capital stock of War Emergency Corporations: Capital stock of the Emergency Fleet Corporation. ), 000,000.00 Capitalstock of the Housing Corporation, issued.. $70,000,000.00 Less amount retired 3,500,000.00 Capital stock of the Sugar Equahzation Board. Capital stock of the United States Grain Corporation, authorized and issued Less amount retired a.. $500,000,000.00 450,000,000.00 Capital stock of the War Finance Corporation, authorized and issned Less cash deposited with the Treasurer United Slates to credit of War Finance Corporation ; Obligations of carriers acquired under section 7 of the Federal control act, approved Mar. 21,1918, as amended: i Boston & Maine Railroad ' $26,695, OO ' O. 00 New York Central Railroad Co New York, New Haven & Hartford Railroad Co Chicago, Terre Haute & Southeastern Railwav Co 50,250.00 Pennsylvania Railroad Co The Erie Raihoad Co '. 3,000,000.00 International Great Northern Railwaj^ Co., The Receiver Pittsburgh & Lake Erie Railroad Co Seaboard Air Line Railroad Co . ofthe .°. ;. • 1,400,000.00 Wa'shington, Brandywine & Point Lookout Railroad Co. Locomotive Superheater Co • 250,000.00 Minneapohs & St. Louis Railroad Co : 750,000.00 Missouri, Kansas & Texas Railway of Texas, Receiver of the 52,000:00 Total. : , $500,000,000.00 402,949,623.43 i, 500,000.00 1,000,000.00 1,000,000.00 I—l. o o pi o w > O Ul ', 050,376.57 $6,500,000.00 3,000,000.00 20, ood, 000.00 500,000.00 1,850,000.00 50,000.00 64,097,250.00 E q u i p m e n t t r u s t 6 p e r c e n t gold n o t e s , a c q u i r e d b y Director G e n e r a l of R a i l r o a d s p u r s u a n t t o F e d e r a l control act of M a r . 21,1918, as a m e n d e d , a n d act a p p r o v e d N o v . 19, 1919, t o p r o v i d e for t h e r e i m b u r s e m e n t of t h e U i u t e d S t a t e s for m o t i v e power, cars, a n d other e q u i p m e n t ordered for carriers u n d e r F e d e r a l control: 2 A l a b a m a G r e a t S o u t h e r n R a i l r o a d Co A n n Arbor Railroad C • o. A t c h i s o n , T o p e k a & S a n t a F e R a i l w a y Co A t l a n t a , B i r m i n g h a m & A t l a n t i c R a i l w a y Co A t l a n t i c Coast L i n e R a i l r o a d Co A t l a n t i c Coast L i n e R a i l r o a d Co. a n d t h e Louisville & NashviUe R a i l r o a d Co., j o i n t lessees of t h e Georgia R a i l r o a d Co B a l t i m o r e & Ohio R a i l r o a d Co Boston & Maine Railroad Buffalo, R o c h e s t e r & P i t t s b u r g h R a i l w a y Co C a r o l m a , Clmchfield & Ohio R a i l w a y C e n t r a l R a i l r o a d Co. of N e w J e r s e y . . .• C h a r l e s t o n & W e s t e r n Carolina R a i l w a y Co C h e s a p e a k e & Ohio R a i l w a y Co Chicago & A l t o n R a i l r o a d Co : Chicago, B u r h n g t o n & Q u i n c y R a i l r o a d Co • Chicago & E a s t e r n I l h n o i s R a i l r o a d Co Chicago, I n d i a n a p o U s & LouisvUle R a U w a y Co Chicago, G r e a t W e s t e r n R a i l r o a d Co Chicago J u n c t i o n R a i l w a y Co •. Chicago, MUwaukee & S t . P a u l iRaUway Co Chicago & N o r t h w e s t e r n R a U w a y C o . . . . : . . Chicago, R o c k I s l a n d & Pacific R a U w a y Co Chicago, S t . P a u l , M i n n e a p o h s & O m a h a R a U w a y Co Chicago & W e s t e r n I n d i a n a R a i l r o a d Co C i n c i n n a t i , N e w Orleans & T e x a s Pacific R a U w a y Co Cleveland, C i n c i n n a t i , Chicago & S t . Louis R a U w a y C o . . . Colorado & S o u t h e r n R a U w a y Co • D e l a w a r e & H u d s o n Co D e t r o i t , T o l e d o & I r o n t o n R a U r o a d Co. : D e t r o i t & Toledo Shore L i n e RaUroad Co E r i e R a U r o a d Co F o r t W o r t h & D e n v e r C i t y R a U w a y Co G r a n d T r u n k R a U w a v of C a n a d a G r a n d T r u n k W e s t e r n R a U w a y Co G r e a t N o r t h e r n R a U w a y Co. H o c k i n g VaUey R a U w a y Co lUinois C e n t r a l RaUroad Co I n d i a n a H a r b o r B e l t R a i l r o a d Co Total. '... $1.54,000 -733,600 6. 865,600 ' 917,000 5,954,200 1,104,600 16,406,600 4,974,200 1,870,400 5,796,000 3,262,000 763,000 10,458,000 1,695,400 5,656,000 691,600 970,200 607,600 446,600 15,348,200 9,308,600 7,576,100 2,195,200 260,400 893,200 4,788,000 980,000 3,651,200 788,200 467,600 4,201,400 240,800 838,600 ,2,825,200 4,008,200 2,646,000 8,509,200 550,200 ^ , K a n a w h a & Michigan R a i l w a y Co K a n s a s City S o u t h e r n R a i l w a y Co K a n s a s City T e r m i n a l R a i l w a y Co L a k e E r i e & W e s t e r n R a i l r o a d Co , Louisville & N a s h v i l l e R a i l r o a d Co Maine C e n t r a l R a i l r o a d Co Michigan C e n t r a l R a i l r o a d Co Miiyieapohs & S t . L o u i s R a i l r o a d Co Missouri, K a n s a s & T e x a s R a i l w a y Co Missouri Pacifie R a i l r o a d Co Mobile & Ohio R a i l r o a d Co Monongahela R a i l w a y Co M o r g a n t o w n & K i n g w o o d R a i l r o a d Co Nashville, C h a t t a n o o g a & St. L o u i s R a i l w a y Co N e w Y o r k C e n t r a l R a i l r o a d Co N e w Y o r k , N e w H a v e n & H a r t f o r d R a i l r o a d Co Norfollc S o u t h e r n R a i l r o a d Co Norfolk & W e s t e r n R a i l w a y Co N o r t h w e s t e r n Pacific R a i l r o a d Co P e n n s y l v a n i a R a i l r o a d Co P e r e M a r q u e t t e R a i l w a y Co : P i t t s b u r g h & L a k e E r i e Railroad Co Pittsburgh, McKeesport & Youghiogheny Railroad Co. R i c h m o n d , F r e d e r i c k s b u r g & P o t o m a c R a i l r o a d Co R u t l a n d R a i l r o a d Co S e a b o a r d Air L i n e R a i l w a y Co S o u t h e r n Pacific Co S o u t h e r n R a i l w a y Co S p o k a n e , P o r t l a n d & S e a t t l e R a i l w a y Co St. Louis-San F r a n c i s c o R a i l w a y Co T e r m i n a l Railroad Association of S t . L o u i s . . ; T e x a s & Pacific R a i l w a y Co Toledo & Ohio C e n t r a l R a i l w a y Co Toledo, St. L o u i s & W e s t e r n R a i l r o a d Co V i r g i n i a n R a i l w a y Co W a b a s h Railroad'Co W a s h i n g t o n S o u t h e r n R a i l w a y Co W a s h i n g t o n T e r m i n a l Co : W e s t e r n M a r v l a n d R a i l w a y Co W h e e l i n g & L a k e E r i e R a i l w a y Co •.......:... , $954,800 890,400 175,000 597,800 9,770,600 1,122,800 4,776,800 1,388,800 1,177,400 9,549,400 567,000 460,600 2,427,600 1, 211,000 12,762,400 4,019,400 123,200 6,426,000 253,400 48, 544,000 9,426,200 543,200 2,613,800 918,400 345,800 1,540,000 2,626,400 9,606, 800 820,400 13,094,200 319,200 2,233,000 2,003,400 1,103,200 1,521,800 10,381,000 393,400 88,200 799,400 4,281,200 Ul O > O H w > Ul w Kl. $311,260,300.00 1 T h i s a m o u n t does n o t i n c l u d e securities p u r c h a s e d b y t h e Director G e n e r a l of R a i l r o a d s u h d e r t h e p r o \ a s i o n s of section 12 of t h e F e d e r a l control act, a p p r o v e d Mar. 21,1918. 2 I n each case t h e notes are i n series, all d a t e d J a n . 15, 1920, a n d d u e , respectively, o n t h e 15th d a y of J a n u a r y , 1922 to 1935, inclusive. to Obhgations of carriers acquired pursuant to section 207 ofthe traniportation act, approved Feb. 28, 1920, as amended: Baltimore & Ohio RaUroad Co ". $9,000,000.00 Gulf, MobUe & Northern RaUroad Co Chicago,MUwaukee•& St. Paul RaUway Co : 20,000,000.00 New York, New Haven & Hartford RaUroad Co. Total ....;...: ..; Obhgations of carriers acquired pursuant to section 210 of the transportation act, approved Feb. 28, 1920, as amended: A l-'u^ rTennessee r\„ ....^^ & P. XT iT_ ., u T »_:i a i~\ »_ j..or\r\ n n n n n ' •" T7--,_ r. r M 4 - . . TV/T^.^i^.-. r.i $90,000.00 Kansas City, MexicoJP.&r\..in....^-"D Orient Railroad Co., receiver of the.. Alabama, Northern Raihoad Corporation 1,394,000.00 Kansas City Terminal RaUway Co Alabama & Vicksburg Railway Co 630,000.00 Long Island Railroad Co Ann Arbor Raihoad Co 200,000.00 Louisville & JeffersonviUe Bridge Railroad Co Atlanta, Birmingham & Atlantic RaUway Co , 3,000,000.00 Maine Central Railroad Co Baltimore & Ohio Raihoad Co 200,000.00 Minneapohs & St. Louis Raihoad Co ". Bangor & Aroostook Raihoad Co 11,656,479.00 Missouri Pacific Railroad Co Boston & Maine Raihoad 1,000,000.00 National RaUway Service Corporation Buffalo, Rochester-& Pittsburgh Railway Co 3,000,000.00 New Orleans, Texas & Mexico RaUway Co Carohna, Chnchfield & Ohio Railway 237,900.00 New York Central Railroad Co Central of Georgia Railroad Co 300,000.00 New York, New Haven & Hartford Railroad Co Central New England'Railway Co : 3,759,000.00 Norfolk-Southern Raihoad Co : Chesapeake & Ohio Railway Co 2,445,373.00 Northern Pacific Railway Co Chicago Great Western Railroad Co 200,000.00 Pennsylvania Railroad Co Chicago, Indianapohs & Louisville Railway Co 35,340,000.00 Peoria & Pekin Union RaUway Co • Chicago, Milwaukee & St. Paul Railway Co 9,862,000. 00 Rutland Railroad Co . Chicago, Rock Island &.Pacific Railway Co 7,911,000.00 Salt Lake & Utah Railroad Co..i Chicago & Western Indiana Raihoad Co 375,000. 00 . Seaboard Air Line Railway Co Cumberland & Manchester Railroad Co 9,840,700.00 Shearwood RaUway Co Erie RaUroad Co 33,000.00 Tampa Northern Railroad Co Fernwo6d, Columbia & Gulf Railroad Co 7,250.00 Terminal Raihoad Association of St. Louis Flemingsburg & Northern Railroad Co 200,000.00 Toledo, St. Louis & Western Railroad Co., receiver of Fort Dodge, Des Moines & Southern Railroad Co.. 156,000. 00 Trans-Mississippi Terminal RaUroad Co Fort Smith & Western Railroad Co., receiver of the 642, ooo;00 Virginia Blue Ridge Railway Co Georgia & Florida Railway, receivers of 17,910,000. 00 Virginian Railway Co Great Northern RaUway Co 515,000. 00 Virginia Southern Railroad Co Gulf, Mobile & Northern Raihoad Co 1,053,000.00 Waterloo, Cedar Falls & Northern Railway Co , Hocking Valley Railway Co 4,440,000.00 Western Maryland Railway Co Ilhnois Central Railroad Co ; 579,000.00 Wheehng & Lake Erie RaUway Co , Indiana Harbor Belt Railroad Co ^ 633,500.00 Wichita Northwestern Railway Co , Inter-Urban Railway Co Wilmington, Brunswick & Southern Railroad Co Total Capital stock of Federal land banks, on basis of purchases, less repayments to date: Springfield, Mass $739,925.00 Baltimore, Md 741,485.00 Columbia, S.C : 694,225. 00 LouisviUe, K y . ; ."!..... 598,495. 00 New .Orleans, La 622,175.00 • St. Louis, Mo :..... 556,455. 00 Total .• — : to $480,000.00 60,026,500.00 fcO $89,506,500.00 $2,500,000.00 580,000.00 719,000.00 162,000. 00 1,973,000. 00 1,382,000.00 10,071,760.00 5,079,766.67 234,000. 00 26,775,000. 00 8,130,000. 00 111, 000. 00 6,000,000. 00 12,480,000.00 1,799,000. 00 61,000.00 300,000. 00 7,890,400.00 . 29,000.00 100,000. 00 896,925. 00 692,000. 00 1,000,000. 00 106,000. 00 2, 000,000.00 38,000. 00 1,260,000.00 , • 2,422,800. 00 2,700,000.00 381,750. 00 90,000. 00 pi O pi H O W O Ul 215,574,603. 67 . St. Paul, Minn.. Omaha, Nebr... Wichita, Kans.. Houston, Tex... Berkeley, Cahf.. Spokane, Wash. $359,240. 00 306,530.00. 574,485.00 429,495.00 708, 860.00 369,305.00 6 , 7 0 0 , 6 7 5 . OU Federal farm loan bonds, acquired pursuant to act approved Jan-18,191S, as extended by joint resolution'approved May 26,1920: • Federal farm loan 4h per cent bonds Federal farm loan 5 per cent bonds' Total .' • Securities received by the Secretary of War on account of sales of surplus war supphes Securities received by the Secretary of the Navy on account of sales of surplus property Securities received by the United States Shipping Board on account of sales of ships, etc Grand total. .' : $136,885,000.00 46,150,000.00 $183,035,000.00 23,407,563.16 12,906,303.26 67,775,902.47 : .' , . . . . ! . 11,326,731,680.72 MEMORANDUM. Amount due the United States from the Central Branch of the Union Pacific Railroad on account of bonds issued (Pacific Railroad aid bonds, acts approved July 1, 1862, July 2, 1864, and May 7, 1878): • • Principal. -. : Interest 1 : Total : -. ! $1,600,000.00 1,953,891.09 3,553,891.09 rr. ^ Q H H . . ^ ^ NOTE.—This statement is made up on the basis of the face value of the securities therein described as received by the United States, with due regard for repayments. To the extent that the securities are not held in the custody of the Treasury, the statement is made up from reports received from other Government departments and estabhshments. The statement does not include securities which the United States holds as collateral, or as the result of the investment of trust funds (as, for example, securities held for account of the Ahen Property Custodian, the United States Government Life Insurance Fund, and other similar trust funds). ' , pi K1 2 - g' • > Ul •w t—I 00 REPORT ON T H E FINANCES. 214 EXHIBIT PRELIMINARY 27. STATEMENT OF T H E P U B L I C D E B T OCTOBER 3 1 , 1921. [On the basis of daily Treasury statements. Total gross debt September 30, 1921 Public-debt receipts October 1 to 31, 1921.... Public-debt disbursements October 1 to 31, 1921 $23, 924,108,125.06 $81,,434, 572. 00 546, 394, 200. 47 464, 959, 528. 47 Decrease for period. Total gross debt October 31, 1921 23,459,148,496. 5.9 NOTE.—Total gross debt before deduction of the balance held by the Treasurer free of current obligations,' and without any deduction on accouht of obligations of foreign Governments or other investments, was as follows: Bonds: Consols of 1930 Loanofl925 Panama'sof 1916-19^6. Panama'sof 1918-1938. Panama's of 1961 Conversion b o n d s — Postal sa^dngs bonds. First Liberty loan Second Liberty loan Third Liberty loan Fourth Liberty loan - - $599, 724, 050. 00 --118,489,900.00 48, 954,180. 00 25, 947, 400. 00 50, boo, 000. 00 28, 894, 500. 00 11, 774, 020. 00 $883, 784, 050. 00 1,952,164, 800. 00 3,314,152, 200. 00 - - . - . - 3, 609, 247, 700. 00 6, 351, 586,400. 00 Total bonds Notes: Victory Liberty loan Treasury notes— Series A-1924 SeriesB-1924 15, 227,151,100. 00 16,110, 935,150. 00 3, 645, 286, 400. 00 311,191, 600. 00 390,706,100.00 701, 897, 700. 00 Treasury certificates: Tax Loan Pittman Act 1,416, 576, 500. 00 515, 641,500. 00 146, 375, 000. 00 2, 078, 593, 000. 00 664, 666, 302. 00 War savings securities (net cash receipts) Total interest-bearing debt Debt on which interest has ceased Noninterest-bearing. debt 23, 201, 378, 552. 00 17,460,140. 26 240, 309, 804. 33 Total gross debt 23, 459,148, 496. 59 E X H I B I T 28. Q U A R T E R L Y C O M P A R A T I V E P U B L I C D E B T S T A T E M E N T , SHOWING ALSO F I G U R E S F O R AUG. 3 1 , 1919, W H E N WAR D E B T WAS AT ITS PEAK. [On the basis of daily Treasury statements.] *Gross debt .. Net balance in general fund Gross debt less net balance in general fund •Includes Treasury certificates (unmatured): Loan and tax Pittman Act and special Total i A u g . 31, 1919. Sept. 30,1920. $26, 596,701,648.01 1,118,109, 534. 76 $24,087,356,128.65 434,961,050.10 $23,982,224,168.16 504,951,394.20 25, 478, 592,113.25 23,652,395,078. 55 23,477,272,773.96 3,938,225,000.00 262,914, 050. 39 2, 347, 791,000.00 292,229,450.00 2,300,656,000.00 292,229,450.00 4,201,139,050.39 2,640,020,450.00 2,592, 885,450.00 Dec. 31,1920. 215 SECRETARY OF THE TREASURY. Quarterly comparative public debt statement, showing also figures for Aug. 31, 1919, when war debt was at its peah—Continued. Mar. 31,1921. June 30,1921. Sept. 30, 1921. $23,980,104,397.83 614,593,426.78 $23,977,450,552.54 549,678,105.76 $23,924,108,125.06 757,675, 230.61 Gross debt less net balance in general. fund 23,365, 510,971.05 . 23,427,772,446.78 23,166,432,894.45 •Includes Treasury certificates (unmatured): Loan and tax •. '.. Pittman Act and special 2,474,612,000.00 280,229,450.00 2,450,843,500.00 248,729,450.00 2,307,437,500.00 172,375,000.00 2,754, 841, 450.00 2,699,572,950.00 2,479,812, 500.00 *Gross debt Net balance in general fund... Total EXHIBIT 29. S E C T I O N S 2 0 4 , 209^ A N D 2 1 0 O F T R A N S P O R T A T I O N A C T , 1 9 2 0 , A S AMENDED. REIMBURSEMENT OF DEFICITS DURING FEDERAL CONTROL. S E C 204. (a) When used in this section— The te:rm ^^carrier'^ means a carrier by railroad which, during any part of the period of Federal control, engaged as a common carrier in general transportation, and competed for traffic, or connected, with a railroad under Federal control, and which sustained a deficit in its railway operating income for that portion (as a whole) of the period of Federal control during which it operated its own railroad or system of transportation; b u t does not include any street or interurban electric railway which has as its principal source of operating revenue urban, suburban, or interurban passenger traffic or sale of power, heat, and light, or both; and The term ''test period'^ means the three years ending June 30, 1917. (b) For the purposes of this section— Railway operating incbme or any deficit therein for the period of Federal control shaU be computed in a manner similar to that provided in section 209 with respect to such income or deficit for the guaranty period; and Railway operating income or any deficit therein for the test period shall be computed in the manner provided in section 1 of the Federal Control Act. . (c) As soon as practicable after March 1, 1920, the Commission shall ascertain for every carrier, for every month of the period of Federal control during which its railroad or system of transportation was not under Federal operation, its deficit in railway operating income, if any, and its railway operating income, if any (hereinafter called ''Federal control r e t u r n ' ' ) r a n d the average of its deficit in railway operating income, if any, and of its railway operating invjome, if any, for the three corresponding months of the test period taken together, (hereinafter called " t e s t period return^')* Provided, That " t e s t period return,'^ in.the case of a carrier which operated its railroad or system of transportation for a t least one year during, b u t not for the whole of, the test period, means its railway operating income, or the deficit therein, for the corresponding month during the test period, or the average thereof for the corresponding months ^during the test period taken together, during which the ca:crier operated its railroad or system of transportation. 216 REPORT ON THE FINANCES. (d) For every month of the period of Federal control during which the railroad or system of transportation of the carrier was not under Federal operation, the Commission shall then ascertain (1) the difference between its Federal control return, if a deficit, and its test period return, if a smaller deficit, or (2) the difference between its test period return, if an income, and its Federal control return, if a smaller income, or (3)'the sum of its Federal control return, if a~ deficit, plus its test period return, if an income. The sum of such amounts shall be credited to the carrier. (e) For every such month the Commission shall then ascertain (1) the difference between the carrier^s Federal control return, if ari income, and its test period return, if a smaller income, or (2) the difference between its test period return, if a deficit, and its Federal control return, if a smaller deficit, or (3) the sum of its Federal con trol. re turn, if an income, plus its test period return, if a deficit. The sum of such amounts shall be credited to the United States. (f) If the sum of the amounts so credited to the carrier under subciivision (d) exceeds the sum of the amounts so credited to the TJnited States under subdivision (e), the difference shall be payable to the carrier. In the case of a carrier which operated its railroad or system of transportation for less than a year (luring, or for none of, the test period, the foregoing computation shall not be used, but there shall be payable to such carrier its deficit in railway operating income for that portion (as a whole) of the period of Federal control during which it operated its own railroad or system of transportation. (g) The Commission shall promptly certify to the Secretary of the Treasury the several amounts payable to carriers under paragraph (f). The Secretary of the Treasury is hereby authorized and directed thereupon to draw warrants in favor of each such carrier upon the Treasury of the United States for the amount shown in such certificate as payable thereto. An amount sufficient to pay such warrants is hereby appropriated out of any money in the Treasury ndt other,wise appropriated. The Interstate Commerce Commission, in certifying to the Secretary of the Treasury the amount payable to any carrier under paragraphs (f) and (g) of section 204 of the Transportation Act, 1920, also shall certify to the Secretary of the Treasury such sums^ if any, as may be due from such carrier to the President (as operator of transportation systems under Federal control) on account^ of traffic balances or other indebtedness. The amount so certffied to be due the President, upon his request, shall be deducted by the Secretary of the Treasury from the amount so certified to be due such carrier and thereupon shall be transferred from the appropriation made in paragraph (g) of the said section 204 and cre(iited by him to the appropriation made in section 202 of the Transportation Act, 1920. Such deductions shall be considered as. a payment pro tanto of such indebtedness to the Government. GUARANTY TO CARRIERS A F T E R TERMINATION OF FEDERAL CONTROL. S E C 209. (a) When used in this section— The term " carrier'' means (1) a carrier by railroad or partly by railroad and partly by water, whose railroad or system of transportation is under Federal control at the time Federal control terminates, or which has heretofore engaged as a common carrier in general trans SECRETARY OF THE TREASURY. 217 portation and competed for traffic, or connected, with a railroad at any time under Federal control; and (2) a sleeping car company whose system of transportation is under Federal control at the time Federal control terminates; but does not include a street or interurban electric railway not under Federal control at the time Federal control terminates, which has as its principal source of operating revenue urban, suburban, or interurban passenger traffic or sale of power, heat, and light, or both; The term "guaranty period'^ means the six months beginning March-1, 1920. The term " t e s t period^^ means the three years ending June 30, 1917; and The term "railway operating income" and other references to accounts of carriers by railroad shall, in the case of. a. sleeping car company, be construed as indicating the appropriate corresponding accounts in the accounting system prescribed by the Commission.^ (b) This section shall not be applicable to any carrier which does not on or before March 15, 1920, file with the Commission a written . statement that it accepts all the provisions of this section. (c) The United States hereby guarantees— (1) With respect to any carrier with which a contract (exclusive^ of so-called cooperative contracts or waivers) has been made fixing the amount of just compensation under the Federal Control Act, that the railway operating income of such carrier for the guaranty period as a whole shallnot be less than one-half the amount named' in such contract as annual compensation, or, where the contract fixed a lump sum as compensation for the whole period of Federal operation, that the railway operating income of such carrier for the guaranty period as a whole shall not be less than an amount which shall bear the same proportion to the lump suiri so fixed as six months bears £o the number of months during which such carrier was under Federal operation, including in both cases the increases in such compensation provided for in section 4 of the Federal Control Act; (2) With respect to any.carrier entitled to just compensation under the Federal Control Act, with which such a contract has not been made, that the railway operating income of such carrier for the guaranty period as a whole shall not be less than one-half of the annual amount estimated by the President as just compensation for such carrier under the Federal Control Act, including the increases in such compensation provided for in section 4 of the Federal Control Act. If any such carrier does not accept the President's estimate respecting its just compensation, and if in proceedings under section 3 of the Federal Control Act it is determined that a larger or smaller annual amount is due as just compensation, the guaranty under this paragraph shall be increased or decreased accordingly; (3) With respect to any carrier, whether or not entitled to just compensation under the Federal Control Act, with which such a contract has not been made, and for which no estimate of just compensation is made by the President, and which for the test period as a whole sustained a deficit in railway operating income, the guaranty shall be a sum equal to (a) the amount by which any deficit in its railway operating income for the guaranty period as a whole exceeds one-half of its average annual deficit in railway operating income for the test 218 REPORT ON T H E FINANCES. period, plus (b) an amount equal to one-half the annual sum fixed by the President under section 4 of the Federal Control Act; (4) With respect to any carrier not entitled to just compensation under the Federal Control Act, which for the test period as a whole had an average annual railway operating income, that the railway operating income of such carrier for the guaranty period as a whole shall not be less than one-half the average annual railway pperating income of such carrier during the test period. (d) If for the guaranty period as a whole the railway operating income of any carrier entitled to a guaranty under paragraph (1), (2), or (4) of subdivision (c) is in excess of the minimum railway operating income guaranteeci in such paragraph, such carrier shall forthwith pay the amount of such excess into the Treasury of the United States. If for the guaranty period as a whole the railway operating income of any carrier entitled to a guaranty under paragraph (3) of subdivision (c) is in excess of one-half of the annual sum fixed by the President with respect to such carrier under section 4 of the Federal Control Act, such carrier shall forthwith pay the amount of such excess into the Treasury of the United States. The amounts so paid into the Treasury of the United States shall be added to the funds made available under, section 202 for the purposes indicated in such section. Notwithstanding the provisions of this subdivision, any carrier may retain out of any such excess any amount necessary to enable it to pay its fixed charges accruing during the guaranty period. (e) For the purposes of this section railway operating income, or any deficit therein, for the test period shall be computed in the manner provided for in section 1 of the Federal Control Act. (f) In computing railway operating income, or any deficit therein, for the guaranty period for the purposes of this section— (1) Debits and credits arising from the accounts, calle'd°in the monthly reports to the Commission equipment rents arid joint facility rents, shall be included, but debits and credits arising from the operation of such street electric passenger railways, including railways comnionly called interurbans, as are not under Federal control at the time of termination thereof, shall be excluded; (2) Proper adjustments shall be made (a) in case any lines which were, during any portion of the period of Federal control, a part of the railroad or system of transportation of the carrier, and whose railway operating income was included in such income of the carrier for the test period, do not continue to be a part of such railroad or system of transportation during the entire guaranty period, and (b) in case of any lines acquired by, leased to, or consolidated with, the railroad or system of transportation of the carrier at any time since the end of the test period and prior to the expiration of the guaranty period, for ivhich separate operating returns to the Commission are not made in respect to the entire portion of the guaranty period; (3) There shall not be included in operating expenses, for maintenance of way and structures, or for maintenance of equipment, more than an amount fixed by the Commission. In fixing such amount the Commission shall so far as practicable apply the rule set forth in the proviso in paragraph (a) of section 5 of the "standard contract" between the United States and the carriers (whether or SECRETARY OF THE TREASURY! 219 not such contract has been entered into with the carrier whose railway operating income is being computed); (4) There shall not be included any taxes paid under Title I or I I of.the Revenue Act of 1917, or such portion of the taxes paid under Title I I or I I I of the Revenue Act of 1918 as by the terms of such' Act are to be treated as levied by an Act in amendment of Title I or I I of the Revenue Act of 1917; and (5) The Commission shall require the elimination and restatement of the operating expenses and revenues (other than for maintenance of way and structures, or maintenance of equipment) for the guaranty period, to the extent necessary to correct and exclude any disproportionate or unreasonable charge to such expenses or revenues tor such period, or any charge to such experises or revenues for such period which under a proper system of accounting is attributable to another period. (g)' The commission shall, as soon as practicable after the expiration of the guaranty period, ascertain and certify to the Secretary oi. the Treasury the several amounts necessary to make good the foregoing guaranty to each carrier. The Secretary of the Treasury is hereby authorized and directed thereupon to draw warrants in favor of each such carrier upon the Treasury of the United. States, for the amount shown in such certificate as necessary to make good such guaranty. An amount sufficient to pay such warrants :is hereby appropriated out of any money in the Treasury not otherwise appropriated. (h) Upon application of any carrier to the Commission, asking that during the guaranty period there may be advanced to it from time to time such sums, not in excess of the estimated amount necessary to make good the guaranty, as are necessary to enable it to m e e t l t s fixed charges and operating expenses, the Commission may certify to the Secretary of the Treasury the amount of, and times at which, such advances, if any, shall be made. The Secretary of the Treasury, on receipt of such certificate, is authorized and directed to make the advances in the amounts and at the times specified in the certificate, upon the execution by the carrier of a contract, secured in such manner as the Secretary may determine, that upon final determination of the amount of the guaranty provided for by this section such carrier will repay to the United States any amounts which it has received from such advances in excess of the guaranty, with interest at the rate of 6 per centum per annum from the time such excess was paid. There is hereby appropriated, out of any money in the Treasury not otherwise appropriated, a sum sufficient to enable the Secretary of the Treasury to make the advances referred to in this subdivision. ' (i) If the American Railway Express Company shall, on or before March 15, 1920, file with the Commission a written statement t h a t it accepts all the provisions of this subdivision, the contract of June 26, 1918, between such company and the Director General of Railroads, as amended and "continued by agreement dated November 21, 1918, shall remain in full force and effect duririg the guaranty period in so far as the same constitutes a guaranty on the part of the United States to such company against a deficit in operating income. In computing operating incoriie, and any deficit therein, for the guaranty period for the purposes of this subdivision; the Commission 220 REPORT ON T H E FINANCES. shall require the elimination and restatement of the operating experises and revenues for the guaranty period, to the extent necessary to correct anci exclude any disproportionate or unreasonable charge to such expenses or revenues for such period, or any charge to such expenses or revenues for such period which under a proper system of accounting is attributable to another period, and to exclude from operating expenses so much of the charge for payment for express privileges to carriers on whose lines the express traffic is carried as is in excess of 50.25 per centum of gross express revenue. For the guaranty period the American Railway Express Company shall pay to every carrier which accepts the provisions of this section, as provided in subdivision (b) hereof, 50:25 per centum of the gross revenue earned on the transportation of all its express traffic on the carrier's lines, and every such carrier shall accept from the American Railway Express Company such percentage of the gross revenue as its . compensation. In arriving at the gross revenue on through or joint express, traffic, the method uf dividing the revenue between the carriers shall be that agreed upon between the carriers and such express company and approved by the Commission. If for the guaranty period as a whole the American Railway Express Company does not .have a deficit in operating income, it shall lorthwith pay the amount of its operating income for such period into the Treasury of the United States. The amount so paici shall be added to the funds made available under section 202 for the purposes indicated in such section. The Commission shall, as soon as practicable after the expiration of the guaranty period, certify to the Secretary of the Treasury the amount necessary to make good the foregoing guaranty to the American Railway Express Company. The Secretary of the Treasury is hereb}^ authorized and directed thereupon to draw warrants in favor of such company upon the Treasury of the United States for the amount shown in such certificate as necessary to make good such guaranty.. An amount sufficient to pay such warrants is hereby. appropriated out of any money in the Treasury not otherwise appropriated. Upon application of the American Railway Express Company to the Commission, asking that during the guaranty period there may be advanced to it from time to time such sums, not in excess of the estimated amount necessary to make good the guaranty, as are necessary to enable it to meet its operating expenses, the Commission may certify to the Secretary of the Treasury the amount of, and times at which, such advances, if any, shall be made. The Secretary of the Treasury, on receipt of such certificate, is authorized and directed to make the advances in the amounts and at the times specified in the certificate, upon the execution by such company of a contract, secured in such manner as the Secretary may determine, that upon final determination of the amount of the guaranty provided for by this subdivision such company will repay to the United States any amounts which it has received from such advances in excess of the guaranty, with interest at the rate of 6 per centum per annum from the time such excess was paid. There is hereby appropriated out of any money in the Treasury not otherwise appropriated a sum sufficient to enable the Secretary of the Treasury to make the advances referred to in this subdivision. SECRETARY OF T H E TREASURY. 221 N E W LOANS TO RAILROADS. S E C 210. (a) For the purpose of enabling carriers by Tailroad subject to the Interstate Coinmerce Act properly to serve the public during the transition period immecliately following the termination of Federal control, any such carrier may, at any time after the passage of this Act, and -before the expiration of two years after the termination of Federal control make application to the Commission for a loari from the United States to meet its maturing indebtedness, or to provide itself with equipment or other additions and betterments, setting forth the amount of the loan; the term for which, it is desired.; the purpose of the loan and the use to which it will be applied; the present and prospective ability of the applicant to repay the loan and meet the requirements of its obligations in that regard; the character and value of the security offered; and the extent to which the public convenierice and necessity will be served. The application shall be accompanied by statements showing such facts in detail as the Commission may require with respect to the physical situation, ownership, capitalization, indebtedness, contract obligations, operation, and earning power of the applicant, together with such other facts relating to the propriety and expediency of granting the loan applied for, and the ability of the applicant to make good the obligation as the Commission may deem pertinent to the i:aquiry. (b) If the Coinmission, after such hearing and investigatio:ii, with or without notice, as it may direct, finds that the making, in whole or in part, of the proposed loan by the United States, for one or more of the aforesaid purposes, is necessary to enable the applicant properly to meet the transportation needs of the public, and that the prospective earning power of the applicant and the character and value of the security offered are such as to furnish reasonable assurance of the applicant's ability to repay the Iqan within the time fixed therefor, and to meet its other obligations in connection with such loan the Commission shall certify to the Secretary of the Treasury its findings of such facts; also the amourit of the loan which is to be made; the time, not excleeding fifteen years from the making thereof, within which it is to be repaid; the terms and conditions of the loan, including the security to be given for repayment; that the prospective earning power of the applicant, together with the character and value of the security offered, furnish, in the opinion of the Commission, reasonable assurance of the .applicant's ability to repay the loan within the time fixed therefor and reasonable protection to .the Uriited States; and that the applicant, in the opinion of the Commission, is unable to provide itself with the funds necessary for the aforesaid purposes from other sources. , (c) Upon receipt of such certificate from the Commission the Secretary of the Treasury shall immediately, or as soon as practicable, make a loan of the amount recommended in such certificate out of any funds in the revolving fund provided for in this section and, accept the security prescribed therefor by the Commission. All such loans shall bear interest at the rate of 6 per centum per annum, payable se:cniannually, to the Secretary of the Treasury, and to be . placed to the credit of said revolving fund. The form of obligation to be entered into shall be prescribed by the Secretary of the Treasury, but the time, not exceeding fifteen years from the making thereof. 222 REPORT-ON T H E FINANCES. within which such loan is to be repaid, the security which is to be taken therefor, and the terms and the conditions bf the loan shall be in accordance with the findings and the certificate of the Commission. (d) The Commission or the Secretary of .the Treasury may call upon the Federal Reserve Board for advice and assistance with respect to any such application or loan. (e) There is hereby appropriated out of any moneys in the Treasury not otherwise appropriated the sum of $300,000,000, which shall be used as a revolving fund for the purpose of making the loans provided for in this section, and for paying trie judgments, decrees, and awards referred to in subdivision (e) of section 206. (f) A carrier may issue evidences of indebtedness to the United States pursuant to this section without the authorization or approval of any authority. State or Federal, and without compliance with any requirement. State or Federal, as to notification. The loans for equipment authorized by section 210, Transportation Act, 1920, may be made to or through such organization, car trust or other agency as may be determined upon or approved or organized for the purpose by the Commission as most appropriate in the public interest for the construction, and sale or lease of equipment to carriers, upon such general terms as to security and payment or lease as provided in this section or in subsections 11 and 13 of sectiori 422 of the Transportation Act, 1920. E X H I B I T 30. S T A T E M E N T SHOWING AMOUNTS OF P A R T I A L P A Y M E N T S A N D FINAL PAYMENTS, RESPECTIVELY, LESS DEDUCTIONS THEREF R O M F O R I N D E B T E D N E S S TO T H E P R E S I D E N T , TO N O V . 1 5 , 1 9 2 1 , I N C L U S I V E , M A D E TO C A R R I E R S I N R E S P E C T TO T H E R E I M B U R S E M E N T OF D E F I C I T S P R O V I D E D I N SECTION 2 0 4 OF T H E T R A N S P O R T A T I O N ACT, 1 9 2 0 , A S A M E N D E D . Carrier. Partial payments. Final payment;^. Deductions.! Total certified. Alabama & Mississippi Railroad Co., receiver $60,295. 21 $60,.295. 21 $60,295.21 3,000. 00 $3,000.00 Alabama Northern Railway Co... -. : ^ 30,000.00 30,000.00 Angelina & Neches River Railroad Co 6,563.39 50,000.00 50,000.00 Apalachicola Northern Railroad Co -. 103,452.76 Atlanta & St. Andrews Bay Railway Co 103,452.76 17,546.73 17,546.73 Bartlett Western Railway '3,'ii7."89' 500.00 500.00 Bonlee & Western Railway Co 3,000.00 §, 000. 00 Bristol Railroad C o — 2,000.00 2,000. 00 Brownstone & Middletown Railroad Co ;... 30,000.00 30,000.00 Bullfrog Goldfield Railroad Co 50,000.00 50,000.00 Butler CJounty Railroad Co , 5,485.71 • 38,157.71 Cairo Truman & Southern Railroad Co 38,157. 71 10,932.42 16,500.00 16,500.00 Carolina & Yadkin River Railway Co 2,931.66 9,000.00 9,000. 00 Cliicago, Palatine & Wauconda Railroad Co 127,313.36 100,000.00 127,313.36 Dayton., Toledo & Chicago Railway Co., receiver 40,221.64 > 40, 221.64 Deering Southwestern Railway 708.25 47,579.30 871. 05 Electric Short Line Railway Co 46,708. 25 3,308.96 11,410.94 11,410:94 Ettrick and Northern Railroad Co 513. 34 8,166.45 8,166.45 Fort Smith, Subiaco & Rock Island Railroad Co 73,332.16 73,332.16 10,565. 89 Fourche River Valley & Indian Territory Railway Co. 17,262.19 21,751.06 21,751.06 Franklin & Pittsylvania Railroad Co 5,600.00 5,600.00 5,600.00 Frankfort & Cincinnati Railway Co 600.34 7,100.34 7,100.34 Gainesville & Northwestern Railroad Co 3, 513. 52 40,000.00 40,000.00 Georgia Coast & Piedmont Railroad Co 25,000.00 25, 000.00 Georgia, Florida & Alabama Railway Co 370,000. 00 72,507.96 356,360.45 442,507.96 Gulf, Florida & Alabama Railway Co., receiver 60,000.00 7, 050. .95 60,000.00 Jefferson & Northwestern Railway Co 100, 000.00 100,000.00 Kansas, Oklahoma & Gulf Railway Co 1 Amount due from the carrier to the President (as operator ofthe transportation systems under Federal control) on account of traffic balances and other indebtedness. 223 SECRETARY OF T H E TREASURY. Statement showing amount of partial payments, etc.—Continued. Carrier. Partial payments. $64,000. K e n t w o o d & E a s t e r n R a i l w a y Co K n o x v i l l e , Sevierville & E a s t e r n R a i l w a y Co., receiver! 31,000. 2,500. L i b e r t y W h i t e R a i l r o a d Co L i b e r t y W h i t e R a i l r o a d Co., receiver L i t t l e C o t t o n w o o d T r a n s p o r t a t i o n Co 5,187. L o r a i n & S o u t h e r n R a i l r o a d Co 5,700. L o r a m a R a i l r o a d Co ,.. 50,000. L u f k i n , Hem.phill & Gulf R a i l w a y Co t. L o u i s i a n a R a i l w a y a n d N a v i g a t i o n Co 300,000. M a r r i e t t a &. V i n c e n t R a i l r o a d Co 98,769.67 Midland Railway " M i d d l e T e n n e s s e e Railroad Co 50,000. M i n e r a l P o i n t & N o r t h e r n R a i l w a y Co 25,000. M o h a s s u c k V a l l e y R a i l r o a d Co M o n s o n R a i l r o a d Co 23, 501. M o n t a n a W e s t e r n R a i l w a y Co 16, 000. Mount Jewett, Kinzua & Riterville Railroad Co... 45,189. Nevada-California-Oregon R a i l w a y 60,699. N e w Mexico C e n t r a l R a i l w a y Co '64,000. N e w Y o r k Dock R a i l w a y . .• : T h e N e z p e r c e & I d a h o R a i l r o a d Co. 26, 279. Ocilla S o u t h e r n R a i l r o a d Co ' 80,000. P a r i s & M t . P l e a s a n t i t a i l r o a d Co., receiver 15, 000. P e n n Y a n & L a k e Shore R a i l w a y Co., receiver 11,000. P i c k e n s R a i l r o a d Co P i t t s b u r g , S h a w m u t & N o r t h e r n R a i l r o a d Co., receiver| 200,000. 23,214. R a n d o l p h & C u m b e r l a n d R a i l r o a d Co 9, 540. S h e a r w o o d R a i l w a y Co S o u t h M a n c h e s t e r R a i l r o a d Co T e n n e s s e e , A l a b a m a & Georgia R a i l r o a d Co., receiver! 16,000. Texas State Railroad 20, 000. U r s i n a & N o r t h F o r k R a i l w a y Co W e s t e r n A l l e g h e n y R a i l r o a d Co W h i t e S u l p h u r & H u n t e r s v i l l e R a i l r o a d Co 14, 000. 00 33,364. W i s c o n s i n & Michigan R a i l r o a d Co Total •....: D eductions .1 Final payments. Total , certified. $64,000.00 31,000.00 10.999.20 7,618.95 39,073.32 6,922.70 5,187.38 602.93 5,700.00 22, 460.0.9 50,000. 00 65,490.86 300,000.00 . 20,188.84 20,188.84 35, 852.46 98,769.67 "41'892." 92" 2,578.83 41,892.92 50,000.00 8,153.97 25, 000.00 11,623.92 11,623.92 2,940.90 23,501. 20 10,131. 05 16,000.00 10,550.95 45.189.21 11,824. 52 194,678.59 433,979.07 28,466.31 64,000.00 . 21,109; 43 "2i,"i69."43' 26,279.10 17,456.. 28 80,000.00 80,000. 00 15,000.00 2,198.16 11,000.00 6,679.01 200,000.00 23,214.06 10,714.06 11,298.61 1,258.02 1, 758. 28 16,353. 02 16,353.02 59,950.17 59,950.17 ""4,'367.'is' 16,000.00 4,450. 00 20,000.00 114,941.96 527. 05 114,941. 96 14, 000. 00 6,121. 88 33,364. 56 5,694. 43 $11,749.8 S8,499.20 7,618.95 39,073.32 2,177,651.41 1,012,718.32' '952,001.66 3,190,369.73 1 A m o u n t duef r o m t h e carrier t o t h e P r e s i d e n t ^as operator of t h e t r a n s p o r t a t i o n s y s t e m s u n d e r F e d e r a l control) on a c c o u n t of traffic b a l a n c e s a n d other i n d e b t e d n e s s . , EXHIBIT 31. S T A T E M E N T SHOWING AMOUNTS OF A D V A N C E S , P A R T I A L P A Y M E N T S , A N D F I N A L P A Y M E N T S , R E S P E C T I V E L Y , TO NOV. 1 5 , 1 9 2 1 , I N C L U S I V E , M A D E TO C A R R I E R S I N R E S P E C T TO T H E G U A R A N T Y P R O V I D E D I N SECTION 2 0 9 OF T H E T R A N S P O R T A TION ACT, 1920, A S A M E N D E D . Carrier. Advances. A d i r o n d a c k & St. L a w r e n c e R a i l r o a d Co $4,929.00 Alabama Central Railway. Alabama, Tennessee & Northern Railroad Corporation A m e r i c a n R a i l w a y E x p r e s s Co 19,700,000.00 A n n A r b o r R a i l r o a d Co 240,000.00 Apalachicola N o r t h e r n R a i l r o a d Co A r i z o n a a n d N e w Mexico R a i l w a y Co Aransas Harbor Terminal Railway. '.. 12,000.00 Arizona E a s t e r n R a i l r o a d Co A t c h i s o n , T o p e k a & S a n t a F e R a i l w a y Co A t l a n t a , B i r m i n g h a m & A t l a n t i c R a i l w a y Co., receiver ........:: 1,114,000.00 A t l a n t a & S t . A n d r e w s B a y R a i l w a y Cd , 70,000.00 A t l a n t i c Coast L i n e R a i l r o a d Co 2,500,000.00 A t l a n t i c Coast L i n e R a i l r o a d Co. a n d Louisville & N a s h v i l l e R a i l r o a d Co., j o i n t lessees of-^the Georgia R a i l r o a d A t l a n t i c & W e s t e r n R a i l r o a d Co 15,000.00 B a l t i m o r e , Chesapeake & A t l a n t i c R a i l w a y C o . . 159,300.00 T h e B a l t i m o r e & Ohio R a i l r o a d Co 14,000,000.00 T h e B a l t i m o r e & Ohio Chicago T e r m i n a l R . R . Co. B a n g o r & Aroostook R a i l r o a d Co.. 284,000.00 Partial payments. Final payments. $4,929.00 3,000.08 $3,000.00 62,500.00 8,375,000.00 $75,261. 85 6,000.00 150,000.00 390,000.00 5,425,000.00 90,000.00 2,400,000.00 Total. 62,500.00 28,075,000.00 315,261.85 6,000.00 150,000.00 12,000.00 390,000.00 5,425,000.00 1,204,000.00 70,000.00 4,900,000.00 6,400,000.00 414,000.00 15,000.00 159,300.00 20,400,000.00 735,000.00 60,000.00 .735,000.00 344,000.00 414,000.00 < ' 224 REPORT ON THE FINANCES. Statement showing amounts of advances, etc.—Continued, Carrier. Bartlett Western Railway Bath & Hammondsport Railroad Co Bennettsville & Cheraw Railroad Co Big Fork & International Falls Railway Co... Birmingham & Northwestern Railway Co Birmingham and Southeastern Railway Co., receivers : Boston & Maine Railroad Boyne City, Gaylord & Alpena Railroad Co Brooklyn liiastern District Terminal The Brownwood North & South Railway Co Bufi;alo, Rochester & Pittsburgh Railway-Co.... Buffalo & Susquehanna Railroad Corporation.., Bullfrog Goldfield Railroad Co , Carolina & Northeastern Railway Co. Carolina & Northwestern Railway Co Carrollton &. Worthville Railroad.Co. .= Central of Georgia Railway Co •. Central Indiana Rail way.Co Central New England Railwaj'- Co Central Railroad Co. of New Jersey Central New York Southern Railroad Corporation Central Vermont Railwaly Co Charleston Terminal Railway Co 1 Charleston & Western Carohna Railway Co Chesapeake & Ohio Railway Co Chesapeake Western Railway The Chicago & Alton Railroad Co Chicago, Burlington & Ciuincy Railroad Co Chicago &EasternIllinois Railroad Co., receiver. Chicago & Erie Railroad Co Chicago, Great Western Railroad Co Chicago, Indianapohs & Louisville Railway Co.. Chicago Junction Railway Co Chicago, Milwaukee & Gary Railway Co Chicago, Milwaukee & S't.Paul Railway C o . . . CJhicago & North Western Railway Co Cihicago, Peoria & St. Louis Railroad Co., receivers .'. '. .Chicago River & Indiana Raikoad Co Chicago, Rock Island & Pacific Railway Co *. Chicago, St. Paul, Minneapolis & Omaha Railway Co , Chicago, Terre Haute & Southeastern Railway Co Chicago Tunnel Co Chicago, West Pullman & Southern Railroad Co. Cincinnati, Indianapolis & Western Railroad Co. The'Cincmnati, Lebanon & Northern Railway Co The Cleveland, Cincinnati & St. Louis Railway Co. Colorado & Southern Railway Co Cooperstown & Charlotte Valley Railroad...... Copper Range Railroad Co Cumberland & Manchester Railroad Co Cumberland & Pennsylvania Railroad Co Deering Southwestern Railway Delaware & Hudson Co Delaware, Lackawanna & Western Railroad Co Delaware & Northern Railroad Co The Denison & Pacific Suburban Railway Co.. The Denver & Rio Grande Railroad C;o., receiver ". Denver & Salt Lake Railroad Co., receivers... Detroit, Bay City & Western Railroad Co Detroit, Grand Haven & Milwaukee Railway Co The Detroit & H uron Railway Detroit & Mackinac Railway Co . Detroit Terminal Railroad Co Detroit, Toledo & Ironton Railroad Co Duluth, South Shore & Atlantic Railway C o . . . Electric Short Line Railway Co Electric Short Line Terminal Co Erie Railroad Co Fernwood Columbia & Gulf Railroad Flint River & Northeastern Railroad Co Fort Dodge, Des Moines & Southern Railroad Co The Fort Worth Belt Railway Co •y Fort Worth & Rio Grande Railway Co.. Advances. Partial . payments. $7,500. 00 9,000.00 10,000.00 25,000.00 $33,000.00 12,000. 00 6;500,000.00 12,500.00 Final payments. Total. S7,500.00 9,000.00 10,000.00 25,000.00 33,000.00- 6,000,000.00 - 12, 000.00 10,500, 000.00 42, 500..00 • 220, 000.00 500.00 5, 500.00 1,532, 000.00 100, 500.00 7,,000.00 10 500. 00 59; 000.00 11; 000.00 3,625, 000.00 670.00 so; 411.00 1,532, 5,146, 000.00 33, 000.00 1,425; 000.00 50, 000.00 480, 000.00 3,300, 000.00 10, 000.00 1,720, 000.00 7,650, 000.00 1,500, 500.00 1,621, 000.00 3,185, 000.00 1,275, 000.00 1,250, 697. 00 . 91, 892.05 22,434, 000.00 12,800, 408,000.00 75,000.00 6,000,000.00 900,000.00 1,192,000.00 2,092,000.00 150,000.00 49,000.00 14,500.00 22,000.00 230,000.00 150,000.00 "49,000.00 14,500.00 22,000.00 380,000.00 470,000.00 340,000.00 15,000.00 150,000.00 470,000.00 340,000.00 15,000.00 150,000.00 8,000.00 60,000.00 4,000.00 2,702,500.00 7,124,500.00 31,500.00 17,700.00 4,000,^0.00 30,000.00 220,000.00 1,300,000.00 7,'SOO." 66 11,000.00 3,150,000.00 1,532,670.00 5,146,411.00 1,325,000.00 220,000.00 2,700,000.00 10,000.00 ,700,000.00 1,500,000.00 1,285,000.00 1,700,000.00 500,000.00 1,000,000.00 91,697.00 14, 297,702.00 238,000.00 75,000.00 8,000.00 2,195,000.00 5,124,500.00. 31,500.00 5,500.00 232,500.00 100,000.00 10,000.00 59,500.00 475,000.00 80,000.00 33,000.00 100,000.00 50,000.00 260,000.00 600,000.00 1,020,000.00 7,650,000.00 336,500.00 1,485,000.00 775,000.00 250,000.00 8,137,190.05 12,800,000.00 170,000.00 60,000.00 4,000.00 507,500.00 2,000,000.00 17,700.00 425,000.00 90,000.00 100,000. 00 281, 500.00 45,000. 00 13,765,000. 00 35,000.00 137,500.00 150,000.00 937,500.00 425,000.00 94,500.00 580,000.00 7,500.00 55,000.00 100,000.00 .225,000.00 225,000.00 281,500.00 59,993.67 $14,993.67 3,158. 56 3,158. 56 14,765,000.00 1,000,000.00 59,000.00 24,000.00 4,000.00 4,000. 00 937,500.00 4,500.00 580,000.00 7,500.00 55,000.00 12,500.00 210,000.00 137,500.00 12,500.00 210,000.00 225 SECRETARY OF T H E TREASURY. Statement showing amounts of advances, etc.—Continued. Carrier. Fourche River Valley & Indian Territory Railway Co Frankfort & Cincinnati Railway Co , Franklin & Pittsylvania Railroad Co ." Gainesville Midland Railway , Gainesville & Northwestern Railroad Co The Galveston, Harrisburg & San Antonio Railway Co : Galveston Wharf Co Georgia & Florida Railway, receivers. Georgia, Florida & Alabama Railway Co Georgia Northern Railway Co Georgia Southern & Florida Railway Co Grand Canyon Railway Co Grand Rapids & Indiana Railway Co . The Grand Trunk Railway Co. of Canada, lessee ofthe Atlantic & St. Lawrence Railroad Co, The Grand Trunk Railway Co. of Canada, lessee ofthe Chicago, Detroit & Canada Grand Trunk Junction Railroad Co The Grand Trunk Railway Co. of Canada, lessee of the Cincinnati, Saginaw & Mackinaw Railroad Co .The Grand Trunk Railway Co. df Canada, lessee ofthe Lewiston & Auburn Railroad Co.. The Grand Trunk Railway Co. of Canada, lessee of the Michigan Air Line Railway Grand Trunk Western Railway Co Great Northern Railway Co • Greenwich & Johnsonville Railway Co Gulf, Colorado & Santa Fe Railway Co Gulf, Florida & Alabama Railway Co., receiver Gulf, Mobile & NorthQrn Railroad Co Gulf, & Ship Island Railroad Co Gulf, Texas Si Western Railway Co Hawkinsville & Florida Southern Railway Co., receiver Houston & Brazos Valley Railway Co., receiver The Houston, East & West Texas Railway Co.. Houston & Texas Central Railroad Co Huntingdon & Broad Top Mountain Railroad & Coal Co Illinois Central Railroad Co Illinois Northern Railway Indiana Harbor Belt Railroad Go International & Great Northern Railway Co., receiver Jefferson & Northwestern Railway The Kanawha & Michigan Railway Co Kansas City, Clinton & Springfield Railway Co Kansas, Oklahoma & Gulf Railway Co Kansas City, Mexico & Orient Railway Co. of Texas j Kansas City, Mexico & Orient Railroad Co., receiver Kansas City Southern Railway Co Kinston Carolina Railroad Co ' Lake Charles & Northern Railroad Co The Lake Erie & Western Railroad Co The Leavenworth Terminal Railway & Bridge Co Lehigh & Hudson River Railway Co Lehigh Valley Railroad Co : Live Oak, Perry & Gulf Railroad Co The Long Island Railroad Co Louisville Bridge & Terminal Railway Co Louisville, Henderson & St. Louis Railway Co.. Louisville & Nashville Railroad Co Louisyille & Wadley Railroad Co Macon, Dublin & Savannah Railroad Co Maine Central Railroad Co Manistique & Lake Superior Railroad Co Marion & Rye Valley Railway Co Maryland, Delaware & Virginia Railway Co... Maryland & Pennsylvania Railroad Co Maxton, Alma & Southbound Railroad Co Memphis, Dallas & Gulf Railroad Co., receiver. Meridian & Memphis Railway Co Michigan Central Railroad Co Middletown & Unionville Railroad Co 70073—FI 1921- -15 Partial pajrments. Advances. $16,500.00 11,000.00 11,300.00 8,400.00 445,000.00 120,000.00 6,500,000.00 235,000.00 528,000.00 245,000.00 95,000.00 65,000.00 37,000.00 Final payments. Total. $12,500.00 3,000.00 25,000.00 7,000.00 $16,500.00 12,500.00 14,000.00 ' 36,300.00 15,400.00 150,000.00 139,000. 00 15,000.00 40,000.00 5,500.00 130,000.00 9,500.00 780,000.00 150,000.00" 139,000.00 460,000.00 160,000.00 5,500.00 130,000.00 9,500.00 780,000.00 425,000.00 425,000.00 55,000.00 ,55,090.00 90,000.00 • 90,000.00 22,000.00 22,000. 00 30,000.00 1,000,000.00 6,000,000.00 6,000.00 1,575,000.00 12,000.00 200,000.00 2O,00O.QO 20,000.00 10,000.00 15,500:00 145,000.00 30,000.00 1,000,000.00 12,5t)0,000.00 6,000.00 1,575,000.00 247,000.00 728,000.00 265,000.00 115,000.00 900,000.00 75,000.00 . 52,500.00 145,000.00 900,000.00 82,715.00 8,000,000.00 122,285.00 4,376,000.00 35,000.00 900,000.00 205,000.00 12,376,000.00 35,000.00 900,000.00 1,815,000.00 30,000.00 260,000.00 2,075,000.00 30,000.00 103,000.00 55,000.00 262,000.00 103,000.00 55,000.00 120,000.00 142,000.00 470,000.00 470,000.00 446,000.00 600,000.00 1,500.00 21,000.00 360,000.00 18,000.00 200,000.00 7,000,000.00 . 2,000,000.00 50,000.00 2,300,000.00 5,250.00 85,000.00 3,000.00 90,000.00 20,000.00 22,000.00 450,000.00 150,000.00 175,000.00 4,750,000.00 6,500.00 300,000.00 33,000.00 8,800.00 75,000.00 6,000.00 9,000.00 910,000.00 3,500.00 446,000.00 600,000.00 1,500.0021,000.00 360,000.00 is; 000.00 200,000.00 7,000, 000.00 22; 000.00 '450,000.00 150, 000.00 175, 000.00 6,750,000.00 6,500. op 50, 000.00 2,600,000.00 33,000.00 050.00 , 14, 85, 000.00 75, 000.00 3,000.00 . 96,000.00 29,000.00 910,000.00 3 500.00 226 REPORT ON THE FINANCES.. J:^tatement showing amounts of advances, etc.—Continued. ,^ Cariiier. Advances. Partial payments.^ Final payments. $30,000.00 Midland Railway $63,000.00 Midland Valley Railroad Co 6,500.00 Mineral Point & Northern Railroad Co 70,000.00 Mineral Range Railroad Co 17,000.00 Minneapelis Eastern Railway Co 490,000.00 '2," iso," 666.'66 Minneapolis & St. Louis Railroad Go Minneapolis, St. Paul & Sault Ste. Marie Rail1,400,000.00 3,135,000.00 way Co 150,000.00 Minnesota & International Railway Co 8,500.00 Mississippi Eastern Railway Co 245,000.00 Mississippi Central Railroad Co 700,000.00 Missouri, Kansas & Texas .Railway Co., receiver. Missouri,Kansas & Texas Railway Co. of Texas, 2,870,000.00 receiver 49,500.00 300,000.00 Missouri & North Arkansas Railroad, receiver.. 3,100,000.00 9,483,000.00 Missouri Pacific Railroad Co 375,000.00 950,000.00 Mobile & Ohio Railroad Co 3,000.00 Monson Railroad Co 3,000.00 Montana Western Railway Co 64,500.00 Montpelier & Wells River Railroad Morgan's Louisiana & Texas Railroad & Steam85,000.00 . ship Co 4,000.00 Mount Hope Mineral Railroad Co 9,000.00 Mount Jewett, Eanzua & Riterville Railroad Co.. 46,000.00 Muscatine, Bmiington & Southern Railroad Co. The Nashville, Chattanooga & St. Louis Rail1,200,000.00 way 150,.000.00 30,000.00 Nevada Copper Belt Railroad Co New Orleans Great Northern Railroad Co 235,500.00 New Orleans, Texas & Mexico Railway Co. 500,000.00 20,000.000.00 New York Central Railroad Co..: - 50,0,00.00 New York Dock Railway New York, New Haven & Hartford Railroad Co. 11,817,200.00 600,000.00 New York, Ontario & Western Railway Co 15,000.00 New York & Pennsylvania Railway Co New Y.ork, Philadelphia & Norfolk Railroad Co. 300,000.00 256,000.00 New York, Susquehanna & Western Railroad 205,000.00 Co • 550,000.00 6,000.00 Nezperce & Idaho Railroad Co 30,000.00 Norfolk & Portsmouth Belt :Line Railroad Co.. Norfolk Southern Railroad Co 700,000.00 $611,700.63 2,000,000.00 Norfolk & Western Railway Co 6,000,000.00 80,000.00 Northern Alabama Railway Co : 7,000,000.00 5,000,000.00 Northern Pacific Railway Co \ 8,000.00 15,000.00 Ocilla Southern Railroad Co^receivers ,.. The Ohio River & Western Railway Co 70,000.00 Oregon Electric Railway Co : , 180,000.00 40,000.00 Oregon Trunk Railway :... 30,000.00 Pacific Coast Railroad Co •.• 550,000.00 Panhandle & Santa Fe Railway Co.: : Paris & Great Northern Railroad Co 27,500.00 20,000.00 Paris & Mt. Pleasant Railroad Co., receiver 50,000.00 2,000.00 Penn Yan & Lake Shore Railway, receiver 53," 666," 666.'66' The Pennsylvania Railroad Co 87,000.00 Peoria Railway Terminal Co Peoria & Pekin Union Railway Co .245,500.00 55,000.00 Philadelphia & Reading Railway Co , 5,500,000.00 2,350,000.00 The Pittsburgh, Cincinnati, Chicago & St. 4,000,000.00 Louis Railroad Co...., 6,100,000.00 The Pittsburgh & Lake Erie Railroad Co , 3,000,000.00 Pittsburgh & West Virginia Railway Co , """i75,'666.'66' The Pontiac, Oxford & Northern Railroad Co.., 110,000.00 Quanah, Acme & Pacific Railway C o . . . . . . . . . . . 55,000.00 65,000.00 Railway Transfer Co. ofthe City of Minneapolis. Randolph & Cumberland -Railway Co 15,000.00 • Rapid City, Black Hills & Western Railroad Co, 15,000.00 Raritan River Railroad Co. , 80,000.00 40,000.00 Rio Grande, El Paso & Santa Fe Railroad Co.. Rio Grande Southern Railroad Co , 115,000.00 Rockingham Railroad Co , 8,000.00 225,000.00 Rutland Railroad Co .....', 375,000.00 San Antonio & Aransas Pass Railway Co , 475,000.00 San Antonio, Uvalde & Gulf Railroad Co., receiver : 05,000.00 45,000.00 Sandy River & Rangeley Lakes Railroad 10,000.00 Savannah & Statesboro JRailway Co , 4,000. do Seaboard Air Line Railway Co , 6,525,000.00 Shearwood Railway Co 2,500.00 2.000.00 Southern Pacific Co .• 4,200,000.00 200,000.00 Spokane, Portland & Seattle Railway Co ".. 250,000.00 Total. $30,000.00 63,000.00 6,500.00 70,000.00 17,000.00 2,640,000.00 4,535,000.00 150,000.00 . 8,500.00 245,000.00 700,000.00 2,870,000.00 349,500.00 12,583,.000.00 1,325,000.00 3,000.00 3,000.00 64,500.00 85,000.00 4,000.00 9,000.00 46,000.00 1,350,000.00 30,000.00 235,500.00 500,000.00 20,000,000.00 50,000.00 11,817,200.00 600,000.00 15,000.00 556,000.00 755, 000.00 6,000.00 30, 000.00 1,311,700.63 8,000,000.00 80, 000.00 12,000,000.00 23, 000.00 70, 000.00 180,000.00 40, 000.00 30, 000.00 550,000.00 27, 500.00 70, 000.00 2, 000.00 53,000,000.00 87, 000.00 300, 500.00 7,850,000.00 10,100,000.00 3,000,000.00 175,000.00 110,000.00 55,000.00 65,000.00 15,000.00 15,000.00 80,000.00 40,000.00 115,000.00 8,000.00 600,000.00 475,000. 00 iio,ooo..do 10,000.00 4,000.00 6,525,000.00 4,500.00 4,200,000.00 - 450,000.00 227 SECRETARY OF THE TREASURY. Statement showing amount of advances, etc.—Continued. Carrier. Advances. T h e St. J o h n s b u r y & L a k e C h a m p l a i n R a i l road Co •St. Joseph B e l t R a i l w a y Co St. Joseph & G r a n d I s l a n d R a i l w a y C o . . , St. Louis-San Francisco R a i l w a y CJo St. Louis-San Francisco & T e x a s R a i l w a y C o . . . St. P a u l Bridge & T e r m i n a l R a i l w a y Co | T h e Sullivan C o u n t y R a i l r o a d S u s q u e h a n n a & N e w Y o r k R a i l r o a d Co S y l v a n i a Central R a i l w a y Co Termessee Central R a i l r o a d Co T e r m i n a l R a i l r o a d Association of St. Louis Texas Midland Railroad T e x a s & Pacific R a i l w a y , receivers T e x a s S h o r t L i n e R a i l w a y Co T o n o p a h & Goldfield R a i l r o a d Co T h e Toledo & Ohio R a i l w a y Co :.... T o l e d o , Peoria & W e s t e r n R a i l w a y Co., receiver. T o l e d o , Saginaw & Muskegon R a i l w a y C o . . . . . Trans-Mississippi T e r m i n a l R a i l r o a d Co T r i n i t y & Brazos Valley R a i l w a y Co., r e c e i v e r . . T r i n i t y Valley S o u t h e r n R a i l r o a d Co T h e U l s t e r & Delaware R a i l r o a d Co U n i o n Stock Y a r d s Co. of O m a h a ( L t d . ) V e r m o n t Valley R a i l r o a d V i r g i n i a S o u t h e r n R a i l r o a d Co W a b a s h R a i l w a y Co W a d l e y S o u t h e r n R a i l w a y Co W a t e r l o o , Cedar Falls & N o r t h e r n R a i l w a y Co. W a u p a c a - G r e e n B a y R a i l w a y , receiver...."" W e s t e r n Allegheny R a i l r o a d Co W e s t e r n M a r y l a n d R a i l w a y Co T h e W h e e l i n g & L a k e E r i e R a i l w a y Co W i c h i t a N o r t h w e s t e r n R a i l w a y Co W i c h i t a Falls & N o r t h w e s t e r n R a i l w a y Co.,receiver W i c h i t a Valley R a i l w a y Co •. Wilkes B a r r e & E a s t e r n - R a i l r o a d ( ) o . . . : W i n s t o n - S a l e m S o u t h b o u n d R a i l w a y Co Wisconsin & N o r t h e r n R a i l r o a d Co T h e Wrightsville & T e n n i l l e R a i l r o a d Co Y o r k H a r b o r & Beach R a i l r o a d Co Total. $220,000.00 3,000,000.00 1,140,000.00 280,000.00 Partial payments. Final payments. $70,000.00 62,500.00 195,000.00 1,530,000.00 200,000.00 74,500.00 17,000.00 50,000.00 10,000.00 195,000.00 275,000.00 100,000.00 1,245,000.00 6,000.00 80,000.00 105,000.00 175,000.00 75,000.00 165,000.00 35,000.00 1,500.00 244,800.00 $70,000.00 62,500.00 415,000.00 ,530,000. 00 200,000.00 . 74,500.00 17,000.00 sO,000.00 10,000.00 195,000.00 ,415,000.00 100,000.00 ,245,000.00 6,000.00 80,000.00 105,000.00 175,000.00. 75,000.00 165,000. OO 315,000.00 1,500.00" 244,800.00 65,000.00 45,000.00 6,500.00 ',577,000.00 50,000.00 85,000.00 4,000.00 45,000. OO ,400,000.00' 955,000.00 35,000. OO 65,000.00 4,500.00 5,077,000.00 85,000.00 1,000,000.00 500,000.00 35,000.00 45,000.00 2, 000.00 1,500,000.00 50,000.00 4,000.00 45,000.00 400,000.00 455,000.00 287,800.00 145,000.00 140,000.00 110,000.00 27,500. OO 75,000.00 15,000.00 287,800.00 145,000.00 140,000.00 100,000.00 Total. 10,000.00 27,500.00 75,000.00 15,000.00 263,935,874.00 165,827,775.05 $705,114.71 430,468,763; 76 EXHIBIT 32. S T A T E M E N T S H O W I N G A M O U N T S O F L O A N S TO N O V . 16, 1 9 2 1 , I N C L U S I V E , M A D E TO C A R R I E R S U N D E R S E C T I O N 2 1 0 O F T H E T R A N S P O R T A T I O N ACT, 1 9 2 0 , A S A M E N D E D , A N D A M O U N T S O F R E P A Y M E N T S ON S U C H L O A N S . Carrier. A k r o n , C a n t o n & Y o u n g s t o w n R a i l w a y Co , A l a b a m a , T e i m e s s e e & ' N o r t h e r n R a i l r o a d Corporation A l a b a m a & V i c k s b u r g R a i l w a y Co. A n n A r b o r RaUroad Co ....... Aransas Harbor Terminal Railway A t l a n t a , B i r m i n g h a m & A t l a n t i c R a i l w a y Co :Baltimore & Oliio R a i l r o a d Co B a n g o r & Aroostook R a i l r o a d Co Boston & Maine Railroad Buffalo, R o c h e s t e r & P i t t s b u r g h R a i l w a y Co C a m b r i a & I n d i a n a R a i l r o a d C3o Carolina, CUnclifield & O h i o . R a i l w a y Co C e n t r a l of Georgia R a i l w a y (iJo C e n t r a l N e w E n g l a n d R a i l w a y Co C e n t r a l V e r m o n t R a i l w a y Co : Charles City W e s t e r n R a i l w a y Co, C h e s a p e a k e & Ohio R a i l w a y Co Chicago & E a s t e r n Illinois R a i l r o a d Co., r e c e i v e r . . . . . . Chicago G r e a t W e s t e r n R a i l r o a d Co Chicago, I n d i a n a p o h s & Louisville R a i l w a y Co Chicago, M i l w a u k e e & S t . P a u l R a i l w a y Co Amounts. $212,000.00 90,000.00 1,394,000.00 650,000.00 50,000.00 200,000.00 3,000,000.00 200,000.00 14,705,479.00 1,000,000.00 250,000.00 4,000,000.00 237,900.00 300,000.00 193,000.00 140,000.00 6,428,000.00 785,000,000.00 2,445,373.00 200,000.00 35,340,000.00 Repayments. $60,000.00 '"20," 666." 66 "'"4," 666." 66 1,000,000.00 45,000.00 228 REPORT ON THE FINANCES. Statement showing amounts of loans, etc.—Continued. Carrier. Amounts. CJtiicago, Rock I s l a n d & Pacific ^Railway Co Chicago & W e s t e r n I n d i a n a R a i l r o a d Co C u m b e r l a n d & M a n c h e s t e r R a i l r o a d Co E r i e R a i l r o a d Co ,. E v a n s v i l l e , I n d i a n a p o l i s & T e r r e H a u t e R a i l w a y Co F e r n w o o d , C o l u m b i a & Gulf R a i l r o a d Co F l e m i n g s b u r g & N o r t h e r n R . R . Co F o r t Dodge, Des Moines & S o u t h e r n R . R . Co F o r t S m i t h & W e s t e r n R a i l r o a d Co., receiver of t h e . Georgia & F l o r i d a R a i l w a y , receivers of G r e a t N o r t h e r n R a i l w a y Co. G r e e n e C o u n t y R a i l r o a d Co , Gulf, Mobile & N o r t h e r n R a i l r o a d Co H o c k i n g Valley R a i l w a y Co I l h n o i s C e n t r a l R a i l r o a d Co , I n d i a n a H a r b o r :Belt R a i l r o a d Co I n t e r n a t i o n a l & G r e a t N o r t h e r n R a i l w a y Co., receiver of I n t e r - U r b a n R a i l w a y Co K a n s a s City, Mexico & O r i e n t R a i l r o a d Co., receiver o f t h e . . K a n s a s City T e r m i n a l R a i l w a y Co L a k e E r i e , F r a n k l i n & Clarion R a i l r o a d Co L o n g I s l a n d R a i l r o a d Co., T h e ' , Louisville & Jeffersonville Bridge & R a i l r o a d Co M a i n e C e n t r a l Railroad Co '. Mirmeapolis & S t . Louis R a i k o a d Co .' Missouri, K a n s a s & T e x a s R a i l w a y Co. of T e x a s , receiver of, Missouri Pacific R a i l r o a d Co N a t i o n a l R a i l w a y Service Corporation N e w Orleans, T e x a s & Mexico R a i l w a y Co N e w Y o r k C e n t r a l R a i k o a d Co " N e w Y o r k , N e w H a v e n & H a r t f o r d R a i k o a d Co Norfolk S o u t h e r n R a i l r o a d Co : N o r t h e r n Pacific R a i l w a y Co P e n n s y l v a n i a R a i k o a d Co , Peoria & P e k i n U n i o n R a i l w a y Co R u t l a n d R a i k o a d Co ." Salt L a k e & U t a h R a i l r o a d Co : Seaboard Air L i n e R a i l w a y Co Shearwood R a i l w a y Co T a m p a N o r t h e r n R a i k o a d Co , T e r m i n a l R a i k o a d Association of S t . Louis Toledo, S t . Louis & W e s t e r n R a i l r o a d Co., receiver of Trans-Mississippi T e r m i n a l R a i k o a d Co Virginia Blue Ridge R a i l w a y Co Virginia S o u t h e r n R a i k o a d Co Virginian R a i l w a y Co., T h e Waterloo, Cedar FaUs & N o r t h e r n R a i l w a y Co W e s t e r n M a r y l a n d R a i l w a y Co Wheeling & L a k e E r i e R a i l w a y Co W i l m i n g t o n , ;Brunswick S.' S o u t h e r n R a i l r o a d Co W i c h i t a N o r t h w e s t e r n R a i l w a y Co Total ,862,000. ,000,000. 375,000 ,674,450 :l50,000. 33,000 7,250 200,000. 156,000 792,000. ,496,000. 60,000 515,000 ,053,000 ,440,000 579,000. 194,300. 633,500. ,500,000 580,000. 25,000. 719,000. 162,000. ,373,000 ,382,000. 450,000. 071,760. 437,830. 234,000. 775,000. 530,000. 261,000. 000,000. 480,000. 799,000. 61,000. 000,000. 558,900. 29,000. 100,000. 896,925. 692,000 000,000. 106,000. 38,000 000,000. 320,000 772,800. 700,000. 90,000. 381,750, 259,467,217.00 EXHIBIT Repayments. $89,000.00 15,134,000.00 296,000.00 4,362,000.00 173,333.33 15,700.00 60,000.00 21,259,033.33 33. J U N E 24, 1921. Honorable ANDREW W . MELLON, Secretary of the Treasury, Washington, D. C. A bill is now pendiag in Congress to provide additional compensation for veterans of the World War. Under such bill each veteran is given the right to select adjusted service pay, or an adjusted service certificate, or vocational trade aid, or farm or home aid, or land settlement aid. What is meant by these phrases is fully explained in the bill, a copy of which I send you , herewith. In my study of the bill I have tried to determine what financial obligation its enactment would place upon the Treasury. Such obligation your Department, I am sure, is equipped to ascertain. I have no desire to place any undue burden upon you, but I would be M Y DEAR M R . SECRETARY: •SECRETARY OF T H E -TREASURY, 229 grateful if you could see your way clear to indicate what the enactment of the bill would mean to the Treasury of the United States. Thanking you in advance for any information which you may furnish, I am Very truly yours, . J. S. FRELINGHUYSEN, U.S.S. JULY 2, 1921. I received your letter of June 24, 1921, with regard to the Bill now pending in Congress (S. 506) ^^to provide adjusted compensation for veterans of the World War.'' In accordance with your request, I am glad to indicate what financial obligation this Bill would place upon the Government, and what its enactment would mean to the Treasury of the United States. The Bill which has been reported to the Senate provides, as you know, for five optional plans, (1) adjusted service pay, (2) adjusted service certificates, (3) vocational training aid, (4) farm or home aid, and (5) land settlement aid. The financial obligation which its passage would impose on the Treasury depends in large measure upon the choice of plan which may be made by veterans entitled, to the benefits of the Bill. I t is, therefore, impossible to make accurate estimates at this time either as to the total cost to the Treasury or as to the tiriie when the payments would-have to be made. The , features of the plan which would entail the greatest expense are (1) the cash payments to be made as adjusted service pay, (2) the payments and loans to be made on adjusted service certificates, and (3) the payments involved in the so-called farm or home aid. The most conservative estimates show that the Bill would cost from about $1,500,000,000 (if the bulk of the payments were on account of adjusted service pay, the greater part of which would fall in the near future) to about $5,250,000,000 (if most veterans elected to take adjusted service certificates, the payments on which would be distributed over a perioci of 20 years). The actual cost of the Bill should fall between these two extremes according to the choice of plan made by the veterans. If, as seems probable, at least one-half should elect the cash payment plan and about one-half the certificate plan, with one-third of the latter borrowing on their certificates, the ultimate cost of the Bill, it is estimated, would be oYer $3,330,000,000. These estimates take no account of expenses of administration or possible cost of affording vocational training aid, farm or home aid, or land settlement aid to veterans who elect such benefits. These will involve substantial additional expense. Under Title V of the Bill, for example, any veteran who elects farm or home aid may obtain in one payment or in installments an amount equal to his adjusted service pay increased by 40 per cent, for the purpose of enabling him on'or after January 1, 1922, to purchase or make improvements on a city.or suburban home or farm. If any considerable proportion of the veterans should choose this form of aid, the effect would be to throw a heavier expense into the first two or three yea:rs, and perhaps greatly increase the aggregate cost of the plan. ^ These estimates, incomplete as they are, show the heavy obligations to which the pending Bill would commit the country. To impose these vast additional liabilities upon the Treasury, particuM Y D E A R SENATOR: 230 REPORT ON THE FINANCES. larly under present conditions in industry and commerce, would in my judgment create a serious situation. Not the least disturbing feature of the Bill is the plan to postpone actual distribution of the principal benefits conferred by the Bill to the fiscal year 1923. This means that, without conferring immediate benefits on ex-service men, the country would be committing itself to a stupendous indeterminate liability which, once assumed, it would have to carry through no matter how embarrassing it might prove to the finances of the (Government and the business of the country when the time comes for fulfillment. Incidentally this feature of the Bill tends to mislead the people into the belief that in some way the proposed program can be accomplished without imposing a serious burden on the Treasury or the country. The result is to secure for the Bill more favorable consideration than it could receive were the situation presented in its true light. As a matter of fact, a plan to disburse even over a period of years up to 4 or 5 billions of dollars as ^^adjusted compensation" must inevitably increase by that much the war burden which the American people have to bear. I t would greatly swell the cost of Government and virtually defeat the Administration's program of economy and retrenchment. I t could be financed only by adding to the burden of debt and taxes under which the country is now staggering. However financed, no such sum could be taken out of the public Treasury without throwing a corresponding load upon the whole people in the form of increased interest ciharges, increased taxes, and increased cost of living. This burden, moreover, would be in addition to that already imposed in most of the States, which have provided bonuses in varying degrees of liberality to veterans of the late war. , Nor could the vast payments required by the Bill be financed without introducing grave complications into the refunding operations which will be necessary within the next few years. I n e Government has to face early maturities of public debt amounting to about 7^ bilhons of dollars, of which about 5 biUions fall in the same fiscal year in. which it is proposed to begin cash payments under the BiU.. The greater part of this maturing debt will nave to be refunded, and if a scSchers' bonus must also be financed the cost of that refunding will be vastly increased' and the refunding operations themselves sjeriously embarrassed. The market for outstanding Government securities would be adversely affected and the patriotic holders of Liberty bonds, instead of looking forward to improved market conditions, would have to face the threat of further depression. I know of no one thing, for example, that would so greatly strengthen the market for Liberty bonds as the assurance that Congress had oiice and for all given up consideration of a soldiers' bonus. I have already submitted to Congress, in my letter of April 30th to the Chairman of the Committee on Ways and Means, a detailed statement of the condition of the Treasury, the latest estimates of the receipts and expenditures of the Government for the fiscal years 1921 and 1922, and an outhne of the Treasury's program for deaUng with the short-dated debt. The figures given in that letter show that even without any expenditures on account of adjusted compensation under the proposed Bill, there is grave danger that SECRETARY OF THE TREASURY. 231 the necessary expenchtures of the Government in the near future will exceed its current receipts, thus leaving deficits to be met by new taxes or further borrowing. In these circumstances, I believe that the best interests of the country demand that action be deferred upori the solchers' bonus or the Bill to provide so-called adjusted compensation. This is not a time to' impose several biUion doUars of new liabihties on an already overburdened Treasury. I t seems particularly inappropriate to give present consideration to the measure when we stUl have before us the pressing probleia of revising the internal tax laws and finchng sufficient revenues to meet the existing requirements of the Government. This problem must be dealt with in the midst of extreme and widespread industrial depression. These conditions affect not only every industry; in our own country, but are worldwide, and our past experience furnishes no sure guide as to their duration. The revision of the tax laws, therefore, so as to adjust them to present conditions and at the same time produce sufficient revenues to meet the existing requirements of the Government, is a matter of great chfficulty, and even without the burden which would be imposed by the bonus, industrial and commercial earnings in the current year have so decreased that it is a matter of grave concern to the Treasury as to the amount of revenue that will be received in 1922. The country is under a solemn obhgation to those who fought its war. Our first concern, of course, should be to make full provision for the needs of chsabled veterans. To that object the country is pledged to give without stint of its resources. I t would be unfortunate in the extreme, while we are stiU strugghng with that problem, to chssipate our resources in a sweeping plan for cash payments to able-boched ex-solchers and sailors. The best interests of the veterans cannot in the last analysis be considered separate and apart from the best interests of the country as a whole, and I should be derehct in my duty to the country arid to the veterans themselves if I failed to give this warning of the inevitable financial consecjuences of the pending Bill. Its chrect consequences are inescap- . able, and I have already indicated what they would be. I t would a,lso involve grave dangers of renewed inflation, increased conimochty prices and unsettled business coriditions.. The result would be serious injury and loss to the whole community, and in the long run even tne veterans themselves would lose far more than they would gain. I cannot bring myself to believe that this would be ^^ adjusted compensation" for a service that was performed as the high- , est duty of citizenship and a sacrifice that can never be mieasured in terms of money. Very truly yours, A. W. MELLON, Secretary. Hon. J O S E P H S . FRELINGHUYSEN, United States Senate.. 232 REPORT ON T H E FINANCES. EXHIBIT 34. A D D R E S S OF T H E P R E S I D E N T OF T H E U N I T E D STATES D E L I V E R E D TO T H E S E N A T E ON J U L Y 1 2 , 1 9 2 1 , R E L A T I V E TO T H E SOLDIERS' ADJUSTED COMPENSATION BILL. M R . PRESIDENT, AND GENTLEMEN OF THE SENATE: There has come to my attention the pending unfinished business before the Senate, and it is an imperative duty to convey to you the probable effect of the passage at this time of the proposed act, providing for adjusted compensation to our service men in the World War. If tnis measure could be made effective at the present time without disaster to the Nation's finances and without hindrance to imperative readjustment of our taxes it would present an entirely different question than that which is before you. In a personal as well as a public manner, which ought to be a plight of good faith, I have commended the policy of generous treatment of the Nation's defenders, not as a part of any contract, not as the payment of a debt which is owing, but as a mark of the Nation's gratitude. Every obligation is to the disabled and dependent. In such reference as has been made'to general compensation there has been a reservation as to the earliest consistent time for such action if it is taken. Even without such reservation, however, a modified view would be wholly justifiable at the present moment, because the enactment of the compensation bill in the midst of the struggle for readjustment and restoration would hinder every effort and greatly imperil the financial stability of our c^ountry. More, this menacing effort to expend billions in gratuities will imperil our capacity to discharge our first obligations to. those we must not failto aid. I am addressing the Senate directly because the problem is immediately yours, as your unfinished business, but the Executive branch of the Government owes it to both Houses of Congress and to the country frankly to state the difficulties we daily are called upon to meet, and the added peril this measure would bring. Our land has its share of the financial chaos and the industrial depression of the world. We little heeded the growth of indebtedness or the limits of expenditure during the war because we could not stop to count the cost. Our one thought then was the winning of the war, and the survival of the Nation. We borrowed and loaned— individuals to the Nation and the Government to other Governments, and to those who served the Nation, with little thought of settlement. I t was relatively easy then, because national life was at stake. In the sober aftermath we face the order of reason, rather than act amid the passions of war, and our own land and the world are facing, .problems never.solved before. There can be no solution unless we face the grim truths and seek to solve them in resolute devotion to duty. After a survey of more than four months, contemplating conditions which would stagger all of us w^ere it not for our abiding faith in America, I am fully persuaded that three things are essential to the very beginning of the restored order of things. These are the revision, including reduction, of our internal taxation, the refunding of our war debt, and the adjustment of our foreign loans. I t is vitally necessary to settle these problems before adding to our Treasury any such burden as is contemplated in the pending.bill. SECRETARY OF THE TREASURY. 233 I t is unthinkable to expect a business revival and the resumption of the normal ways of peace while maintaining the excessive taxes^ of war. I t is quite as unthinkable to reduce our tax burdens while committing our Treasury to an additional obligation which ranges^ from three to five billions of dollars. The precise figures no one can^ give. If it is conceivably true that pnly two hundred millions a year will be drawn annually from the Treasury in the few years immediately before us, the bestowal is too inconsequential to be of real value to the Nation's defenders; and, if the exercise of the option should call for cash running into billions, the depression in finance: and industry would be so marked that vastly more ha:rm than good „ would attend. Our Government must undertake no obligation which it does not intend to meet. No Government fiat will pay our bills. The exchanges of the world testify to-day to that erroneous theory. Wemay rely on the sacrifices of patriotism in war, but to-day we facemarkets, and the effecits of supply und demand, and the inexorable laws of credits in time of peace. At the very moment we are obliged to pay 5 | per c^ent interest for Government short-time loans to care for our floating indebtedness, a rate on Government borrowing, in spite of tax-exemption, which ought to prevail in private transactions for the no:rmal :Lnterest charges in financing our industry and commerce. Definite obligations amounting to seven and a half billions in war savings certificates, victory bonds and certificates covering floating indebtednessare to mature in the two years immediately following, and the overburdening of the Treasury now means positive disaster in the yearsimmediately before us. Merest prudence calls out in warning. Our greatest necessity is a return to the normal ways of peaceactivities. A modest offering to the millions of service men is apoor palhative to more inillions who may be out of employment. Stabilized finance and well-established cc)nfidence are both essential to restored industry and commerce. The slump which is now upon us is an inevitable part of war's aftermath. I t has followed in the wake of war since the world began. There was the unavoidable readjustment, the inevitable charge-off, the unfailing attendance of losses in the wake of high prices, the inexorable defiation which inflation had preceded. I t has been wholly proper to seek to apply Government relief to minimize the hardships, and the Government had aided wherever possible, and is aiding now, but all the special acts ever dreamed of, all the particular favors ever conceived will not avoid all the distresses nor ward off all the losses. The proper mental state of our people will commit us resolutely and confidently to our tasks, and definite assurances as to taxation and expenditure will contribute to that helpful mental order. The only sure way to normalcy is over the paths nature has marked throughout all human experience. With the approval of Congress the Executive branch of Government has been driving toward that decreased expenditure which is the most practical assurance of diminished taxation. With enthusiastic resolution your administrative agents are making not only conscientious effort to reduce the call for appropriations, but toreduce the cost of government far below the appropriations you have already provided. I t is easy to believe that the only way to diminish 234 REPORT ON THE FINANCES. the burdens which the people must pay is to cut the outlay in^which public moneys are expended. War is not wholly responsible for staggering costs; it has merely accentuated the menace which lies in mounting cost of government and excesses in expenditure which a -successful private business would not tolerate. I can make you no definite promise in figures to-day, but I can pledge you a most conscientious drive to reduce Government cost oy many inillions. I t would be most discouraging to those who are bending their energies to save millions to have Congress add billions to our burdens at the very beginning. Even were there not the threatened paralysis of our Treasury, with its fatal reflexes on all our activities which concern our prosperity, would it not be better to await the settlement of our foreign loans ? A t such a time it would be a bestowal on the part of our Government when it is able to bestow. The United States participates in none of the distributable awards of war, but the world owes us he'avily, and will pay when restoration is wrought. If the restoration fails world-bankruptcy attends. I believe the world restoration is possible, but only with honest, diligent work in productivity on the one hand, and honest and diligent opposition to needless public expenditure on the other. If the suggested recommitment of this measure bore the merest suggestion of neglect or a hint of national ingratitude I would not urge it. I t has been my privilege to speak to Congress on our obligations to the chsabled and dependent soldiers and the Government's deep desire to prove its concern for their welfare. I should be ashamed of the Kepublic if it failed in its duty to them. Neither armistice nor permanent peace, puts an end to the obligations of Government to its defenders or the obligations of citizens to the Government. Mindful of these things the administrative branch of the Government has not only spoken, it has acted and has accomplished. I n view oif some of the things which have been said, and very oarelessly said, perhaps I ought to report officially some of the things which have been done. In the Department of War Risk Insurance there have been filed up to July 7, 1921, compensation and insurance claims numbering 813,442. Of these, 747,786 have been adjudicated, a t an expenditure of $471,946,762, There were 200,000 claims pending when the War Risk Department was reorganized, late in April, this year,, and the number of pending claims has been reduced by 134,344. AU work in this department wiU be current by the 21st of this July; that is to say, aU action which the bureau may take on a given case will be current, though new claims are being filed at the rate of 700 per day. There have been requested 887,614 medical examinations, and less than fourteen thousand await medical .action. Up to July 7 there has been a total of 147,827 patients admitted for care to our hospitals, of whom 26,237 were in hospitals on July 7, and there were on this ciate 6,000 beds in Government institutions without occupants. You are already aware of the progress made toward the oonstruction of additional Government hospitals, not because we are not meeting all demands, but to better meet them and the better to specialize in.the treatment of those.who come under our care. SECRETARY OF THE TREASURY. 235 There has been paid out in allotment and allowances the sum of •$578,465,658, and nearly $4,000,000,000 of Government insurance is in force. In vocational training and rehabilitation of disabled soldiers there ihave been enrolled to date 107,824 men. To-day there are 75,812 men who are training with pay, at the maximum cost of $160 per month; ^8,208 training without pay, but at a tuition and supply outlay of $35 per month. Four thousand disabled men have completed their training and have been returned to gainful employment. These earned an average of $1,051 per year before entering the Army, and are earning to-day, in spite of their war disability and in spite of diminished wage or salary levels, an average of $1,550 per annum. I t is an interesting,revelation and a fine achievement, attended by both abuses and triumphs. Congress has appropriated $65,000,000 for this noble work for the current year, but the estimated accept:ance of training for the year before us contemplates an average of 95,000 disabled men, and the cost will be in excess of $163,000,000, or nearly a hundred millions more than Congress has provided. This -additional sum must be made available. With the increase of avail.ability to training, as recently urged upon Congress, the estimated additional expenditure will be $468,000,000 per annum, untU the jpledge of training is discharged. These figures suggest neither neglect nor ingratitude. I t is more than the entire annual cost of Federal government for many years following the Civil War, and challenges every charge of failure to deal considerately with our Nation's 'defenders. I do not recite the figures to suggest that it is all we may do, or ultimately ought to do. I t is ineyitable that our obligations will grow, and grow enormously. We never have neglected an(3 never will neglect the dependent soldier, a.nd there is no way to avoid Time's a:'emorseless classifications. . Contemplating tho tremendous liability, which the Governinent never will shirk, I would be remiss in my duty if I failed to ask Congress to pause at this particular time, rather than break down our treasury from which so much is later on to be expected. The defenders of the Republic amid the perils of war v/ould be the last of our citizenship to wish its stability menaced by an individual pittance of peace. I know the feelings of my own breast, and that of yours and the grateful people of this Republic. But no thoughtful person, posrsessed with all the facts, is ready for added compensation for the healthful, self-reliant masses of our great armies at the cost of a treasury breakdoAvn which will bring its hardships to all the citizens of the Republic; Its enactment now in all probability would :so add to our interest rates that the added interest charge on new and refunded indebtedness may alone exceed the sum it is proposed t o bestow. When Congress was called in extraordinar}^ session I called your attention to the urgent measures which I thougiht demanded your consideration. You promptly provided the eme:rgency tariff, and good progress has been made toward the much-needed and more deliberate revision of our tariff schedules. There is confessed disappointment that so little progress has been made in the readjustment and reduction of the war-time taxes. I believe you share with me the earnest wish for early accom^plishment. 236 REPORT ON T H E FINANCES. I t is not expected that Congress will sit and ignore other problemsof legislation. There are often urgent problems which must enlist your attention. I have not come to speak of them, though the reorganization of the war risk and vocational training, now pending, would hasten the efficient discharge of our willing obligation's to the* disabled soldiers. But I want to emphasize the suggestion that the accomplishment of the major tasks for which you were asked to sit in extraordinary session will have a reassuring effect on the entire country and speed our resuiription of normal activities and their rewards which tend to make a prosperous and happy people. EXHIBIT 35. The following stateme-nt shows the transactions of the fiscal year 1921 on the basis of the daily Treasury statements. This does not include receipts and expenditures on account of the Postal Service,, other than salaries and expenses of the Post Office Department in Washington, postal deficiencies, and items appropriated by Congress payable from the general fund of the Treasury: RECEIPTS. Ordinary: . ' Customs ..:... Internal revenue— Income and profits t a x . ' Miscellaneous Miscellaneous revenue Panama Canal tolls, etc Total ordinary $308, 564, 391. 00' 3, 206, 046,157.74 1, 390, 380, 823. 28 707, 660,847.10* 12, 280, 741. 79 .......'. 5, 624, 932, 960. 91 Excess of ordinary receipts over ordinary disbursements Excess of ordinary disbursements over ordinary receipts 509, 005, 271. 61 •. Public debt: Liberty bonds and Victory notes Treasury notes Certificates of indebtedness War-savings securities . Postal savings bonds Deposits for retirement of National-bank notes and Federal Reserve bank notes (acts of July 14, 1890, and Dec. 23, 1913) .^. Total - ^14, 943.00-' 311,191, 600.00 8, 486, 964, 950.00 26, 587, 420. 61 178, 880.0040, 090, 415. 00' 8, 864, 998, 322. 61 Grand total receipts 14, 489, 931, 283.52 DISBURSEMENTS. Ordinary: Legislative establishment Executive proper , State D e p a r t m e n t . . . . .* Treasury Department. War Department. Department of Justice Post Office Department. ' : : $18, 994, 565.17 794, 384.12* 8, 780, 796.84 488, 636,.833. IO1,101, 615,013. 32 17,206,418.03 ^ 135^ 359^ 108.17 1 Comiter entry (deduct). 2 Owing to settlement between the Post Office Department and the Railroad Administration on account of transportation during Federal control, Post Office Department, expenditures for .June, 1921, include $65,575,832.03 paid to the Railroad Adniinistration. Deposit of this payment by Railroad Administration resulted in decrease in expenditures on account of '^ Federal control of transportation systems and transportation act, 1920," by a corresponding amount. SECRETARY OF THE TREASURY. Ordinary—Continued. Navy Department Interior Department Department of Agriculture. Department of Commerce Department of Labor. United States Shipping Board Federal control of transportation systems and transportation act, 1920 \. : War Finance Corporation. •Grain Corporation Other independent offices and commissions District of Columbia lAterest on public debt . 237 $650, 373, 835.58357, 814, 893. 01 . 119, 837, 759.41 30, 828, 761.55 8, 502, 509.55 130, 723, 268.26 ^ 730^ j n ^ QQQ 93 ^ 22, 028, 452.12 * 9o, 353^ 411.42 119, 346,189.40 22, 715,158. 60 999,144, 731. 35 Total D e d u c t unclassified repayments, etc 5, 009, 710, 854. 74 922, 593.14 Total Panama Canal ,: Purchase of obligations of foreign Governments Purchase of Federal farm-loan bonds.' 5, 008, 788, 261. 60 16, 461, 409.47 73, 896, 697.44 16, 781, 320. 79 Total ordinary 5,115, 927, 689. 30 - Public debt: Certificates of indebtedness redeemed War-savings securities redeemed Old debt items retired First Liberty bonds retired Second Liberty bonds retired Third Liberty bonds retired.... .^ Fourth Liberty bonds retired Victory notes retired^. : National-bank notes and Federal reserve bank notes retired.. Total public debt. 8,552,225,500. 00 160, 256, 308.19 152, 361. 50 202, 650.00 8, 703, 400.00 51,172, 350. 00 39, 414, 450. 00 332, 439, 450. 00 37, 460, 701.00 9,182, 027,170.69 Grand total expenditures, as per daily Treasury statement, June 30, 1921. 14, 297, 954, 859. 99 SUMMARY. N e t balance in general fund June 30, 1920. Receipts, exclusive of principal of the public debt (see above).. Publie debt receipts (see above) ' TotaJ. Disbursements, exclusive of principal of the public debt (see above) .P u b l i c debt disbursements , Total Net balance in general fund June 30, 1921 $357, 701, 682.23 5, 624, 932, 960.91 8,864, 998, 322.61 14, 847, 632, 965. 75 5,115, 927. 689. 30 9,182, 027,170. 69 14,297, 954,859. 99 549, 678,105.76 3 Deduct excess of credits. * Net expenditures after taking into account credits and $100,000,000 applied by United States Grain Corporation to reduction of capital stock and reflected in miscellaneous receipts for fiscal year 1921. (See note, p. 2, Daily Treasury Statement for August 21, 1920.) , . . NOTE.—Because of legislation establishing revolving funds and providing for the reimbursement ofappropriations, commented upon in the annual report of the Secretary of the Treasury for the fiscal year 1919, p. 126, ff., and in the report for the fiscal year 1920, on pp. 47-49, the gross expenditures in the case of some •departments and agencies, notably the War Department, the Railroad Administration, and the Shipping Board, have been considerably larger than above stated. This statement does not include expenditures on account of the Postal Service other than salaries and expenses df the Post Office Department in Washington, postal deficiencies, and items appropriated by Congress payable from the general fund of the Treasury. EXHIBIT 36. CO 00 The following table shows the cash expenditures of the Government for the fiscal years ended June 30, 1917, June 30, 1918, June 30, 1919, June 30, 1920, and June 30, 1921, as published in the daily Treasury statements andclassified according to departments and establishments: EXPENDITURES. Fiscal year 1917 (revised). Ordinairy: Legislative establishment. Executive proper ' State Department Treasury Department War Department Department of Justice : Post Office Department Navy Department Interior Department Department of Agricultm'e Department of Commerce Department of Labor Umted States Shipping Board . Federal control of transportation systems and transportation act, 1920. War Finance Corporation Grain Corporation Food and Fuel Administrations '. Other«independent offices and commissions District of Columbia Interest on public debt . Total Deduct unclassified repayments, etc. Panama Canal Payment for West Indian Islands Purchase of obligations of foreign Governments,.. Purchase of. Federal farm loan bonds Subscription to stock, Federal land banks Tot^l ordinary. S15,092, 373.97 1,280, 484. 85 6,169,316.41 84, 294,313. 65 358,158, 361.12 10, 566,401.25 1,895, 578.21 239,632, 756.63 216,415, 516.48 ,29,547,234. 01 11,689, 792.94 3, 852,111. 34 14,291, 282.96 7, 558, 829. 88 13,681, 595. 39 24,742, 701.68 Fiscal year 1918. S15; 825, 506. 72 662, 847. 53 892,898. 09 152, 500,426. 53 4, 850,687,186. 88 12, 964,628.18 4, 173,103. 28 1,278, 840,486. 80 244, 556,893.96 42, 870,188. 28 12, 833, 808. 82 469,268. 09 770, 681, 550. 83 120, 263,996.17 44, 929,168. 38 54,859, 896. 40 12,714,740.06 14,446,832.46 189,743;277.14 Fiscal year 1919. $17, 090,106. 24 17, 467,352.03 20, 766,400.14 227, 277,657. 81 8,995,•880,266.18 15, 717,022.36 2, 412, 250; 05 2,002, 310,785.02 288, 285,627.61 39, 246,454.41 15, 589, 514.30 12, 942, 558.75 1, 820,606,870.90 358, 795,274.60 302, 621,846.92 Fiscal year 1920. S19,327, 708. 72 •6,675, 517. 58 13,686, 024. 42 322, 315,627-. 43 1,610, 587,380.86 17,814, 398.18 50,049, 295.07. 736,021, 456. 43 279,244, 660. 87 65,546, 293.14 30,010, 737.75 ^ 5,415,358.40 530, 565,649.61. 2 1,036,672, 157. 53 3 228,472,186. 61 5 350,328,494. 70 87,338,207.08 75,375,809.41 16,014,105. 80 619, 215, 569.17 59, 469,305.17 19,987, 898. 41 1,020,251,622. 28 Fiscal year 1921. S18,994, 565.17 794, 384.12 8, 780,796. 84 488,636, 833.10 1,101,615, 013.32 17, 206,418. 03 1135,359, 108.17 650, 373,835.-58 893. 01 . 357,814, • 119,837,759. 41 30,828, 761. 55 8,562, 509.55 130,723. 268. 26 1730,71i; 669.98 4 22,028, 452.12 6 90, 353,411.42 119, 346,189. 40 22,715,158.60 999,144,731. 35 1,038,868,650.77 ^ 150, 275.43 7,847,916,704. 60 ^ 26,469,620.31 14,934,953,678. 78 7 895,060. 84 5,945,397, 399. 94 4,399, 847.00 5,009,710, 854.74 922,593.14 1,039,018,926.20 19, 782,509. 32 25,000,000. 00 885,000,000. 00 7,874,386,324. 91 19,268,099.30 14,935,848, 739.62 13,195,522.37 5,940,997,552.94 11,365, 714. 01 5,008, 788,261.60 16,461,409.47 4,738,029,750. 00 65,018, 296.93 3,479,255,265. 56 86,580,427.48 421,337,028. 09 29,643,546.17 12,696,702,471.14 18, 514, 879,955.03 73,896,697.44 16,781,320.79 • 8,880, 315. 00 1,977,681,750.52 6,403,343,841. 21 5,115,927,689.30 O • pi H O H M > O Ul Public debt: Certificates of indebtedness redeemed *? War-savings securities redeemed Old debt items retired : One-year Treasury notes redeemed (sec. 18, Federal reserve act, approved Dec. 23, 1913) First'Liberty bonds retired , Second Liberty bonds retired Third Liberty bonds retired Fourth Liberty bonds retired Victory notes retired National bank notes and Federal reserve bank notes rietired (acts of July 14, 1890, and Dec. 23, 1913) Total public debt. Grand total expenditures, as per daily Treasury statement, June 30, 1917 (revised) Graiid total expenditures, as per daily Treasury statement, June 30, 1918 Grand total expenditures, as per daily Treasury statement, June 30, 1919 Grand total expenditures, as per daily Treasury statement, June 30, 1920 Grand total expenditures, as per daily Treasury statement, June 30, 1921 632, 572, 268. 00 - 18,398.75 4, 390, 000. 00 1,312, 732. 00 ;, 727, 345. 98 20,650. 33 I, 538, 078,900. 00 131, 519, 529. 91 63, 029, 583. 00 •, 362, 000. 00 656,000. 00 ., 050,000. 00 :, 935,500. 00 19,150,000. 00 4,003,050. 00 180,351,000. 00 201, 655,700. 00 165,000,000.00 15,589,117,458.53 200, 982, 934.62 509,165.97 8,'552,225,500.00 160, 256,308.19 152, 361. 50 32, 336,700. 00 241,144,200.00 296, 300, 800.00 405, 222, sm. 00 249, 001, 500. 00 202,650. 00 8,703,400.00 51,172,350. 00 39,414,450.00 332,439,450.00 40, 564,115. 50 21,625, 225. 00 23,718,797. 50 23,424,164. 50 37,460,701.00 677, 544,782. 25 7,214,689,453.29 16,326, 506,560. 41 17,038, 039, 723.62 9,182,027,170.69 Q pi H H 2, 655, 226, 532. 77 19,911,391,924.43 34, 841, 386,515. 44 > 23,441,383,564. 83 14,297,954,859.99 1 Owing to settlement between the Postoffice Department and the Railroad Administration on account of transportation during Federal control, Postoffice Department expenditures for June, 1921, include S65,575,832.03 paid to the Railroad Administration, Deposit of this payment by Railroad Administration resulted in decrease in expenditures on account of " Federal Control of Transportation Systems and Transportation Act, 1920," by a corresponding amount. 2 Includes $288,399,222.46 payinents on certificates of indebtedness of Director General of Railroads, due July 15, 1919. • 3 Deduct excess of credits resulting from deposits of War Finance Corporation representing proceeds of redemptions of its holdings of United States securities. See note 2, page 2, daily Treasury statement for June 30, 1920. '' Deduct excess of credits. 5 Includes $350,000,000 applied by United States Grain Corporation to reduction of capital stock and reflected in "MisceUaneous receipts for fiscal year 1920." See note 1, page 2, daily Treasury statement for June 30, 1920. . , 6 Net expenditure after taking into account credits and $100,000,000 applied tb reduction in capital stock of United States.Gram Corporation. 7 Add. • . Ul , Pi K! O o ^ t^ ;> Ul NOTE.—Because of legislation establishing revolving funds and providing for the reimbursement of appropriations, commented upon in the annual report of the Secretary of the Treasury for the fiscal year 1919, page 126, £E., and in the report for the fiscal year 1920 on pp. 47-49, the gross expenditures in the case of some departments and agencies, notably the War Department, the Railroad Administration, and the Shipping Board, have been considerably larger than above stated. This statement does not include expenditures on account of the Postal Service other than salaries and expenses of the Post Office Department in Washington, postal deficiencies, and items appropriated by Congress payable , from the general fund of the Treasury. • - to CO 240 R.EPORT ON THE EXHIBIT EINAJSTCES. 37. S T A T E M E N T SHOWING C L A S S I F I E D R E C E I P T S AND D I S B U R S E M E N T S OF T H E U N I T E D S T A T E S G O V E R N M E N T , E X C L U S I V E O F T H E P R I N C I P A L OF T H E P U B L I C D E B T , B Y M O N T H S , F R O M A P R . 6, 1 9 1 7 , TO OCT. 3 1 , 1 9 2 1 , A S P U B L I S H E D I N D A I L Y T R E A S U R Y STATEMENTS. • RECEIPTS. Customs. A p r . 6 t o 30, 1 9 1 7 . ; . . $17,863,547.22 28,660,148.60 May, 1917 J u n e , 1917 (revised).- 18,686,895.14 Total A p r . 6, 1917, to J u n e 30,1917.. T o t a l for fiscal year 1918 Miscellaneous internal revenue. MisceUaneous revenue, including P a n a m a Canal. $24,075,386.24 107,601,090.34 195,230,281.19 $35,387,512. 86 50,009,778.45 56,993", 915.16 $6,119,713.64 11,996,371. 78 14,814,156.47 $83,446,159.96 198,267,389.17 285,725,157.96 32,930,241.89 567,438,707. 09 Total. 326,906,757.77 142,391,206. 47 9,478,880.98 15,805,129.91 4,248,091.69 15,902,255.99 6,026,475.01 15,201,388.70 5,987,904.91. 13,647,946.24 6,720,898.26 11,935,389.41 13,725,534. 51 11,247,214.10 11,428,560.88 12,163,216. 06 13,200,936. 38 12,019,441.74 31,424,027. 09 18,106,373.13 83,012,299. 95 16,445, 531.99 342,104,796.75 19,925,706.94 17,598,789.28 1,786,647,885.43 50,895,959.22 43,922,598.77 41.265.393.95 50,318,414.27 81,536,702.42 61,425,075.62 61.665.347.96 59,115,478.32 89,635,237.66 93,113,711.68 135,081,929.01 104,052,171.39 7,747,666.17 83,927,636.28 10,423,584.41 74,496,530. 86 13,616,104.84 76,109,362. 50 20,504,025.14 90,458,290. 56 39,297,787.35 139,490,777.44 18,661,246.19 105,059,070. 42 18,099,084.97 103,356,209.87 14,762,583.25 . 99,098,439.69 17, 583,640.17 156,749,278. 05 16,747,600.64 209,319,144.26 97,633,678.29 594,746,110.99 • 23,473,167.68 1,931,772,013.78 179,998,383. 49 2,314,006,291. 84 872,028,020.27 298,550,169.10 65,210, 500.96 J u l y , 1917 A u g u s t , 1917 S e p t e m b e r , 1917 October, 1917 N o v e m b e r , 1917 December, 1917 J a n u a r y , 1918 F e b r u a r y , 1918 M a r c h , 1918 April, 1918 May, 1918 J u n e , 1918.'. Income and profits t a x . 3,664,582,864.70 22,594,804.69 641,877,137.14 23,544,439.33 152,252,031.72 13,851,525.72 151,884,653.80 16,663,790.75 151,580,759.96 169,846,822;58 310,994,263.19 14,645,22^1.92 203,902,'264.23 27,681,278.13 . 195,842,841.34 23,128,580.27 162,759,163.83 31,910,509.72 1,297,848,946.22 422,552,300. 56 159,655,714.78 92,486,335.12 279,262,210.68 56,505,264.07 1,181,500, 563. "K J u l y , 1918 . . . . A u g u s t , 1918 S e p t e m b e r , 1918 October, 1918 N o v e m b e r , 1918 December, 1 9 1 8 . . : . . . J a n u a r y , 1919 F e b r u a r y , 1919 'March, 1919 A p r i l , 1919 May, 1919 J u n e , 1919 497,496,376.62 105,948,066.11 15,837,889.72 30,795,666.13 14,175,802. 76 83,736,123.50 36,308,166.'21 . 89,005,937.44 12,719,024.43 30,136,620. 58 11,453,096.69 93,327,251.94 28,820,184.49 12, 583,861.29 99,743,394. 83 61,916,648.37 117,658,483.35 9,681,907. 59 43,141,373.49 112,287,675.18 12,732,514.54 30,341,342. 50 14,979,078.02 94,310,163. 04 17,876,270.46 1,129,821,269. 04 118,240,897.00 20,141,486. 97 107,696,034. 35 135,059,064.46 20,896,644.65 50,614,139. 20 115,265,091.71 21,380,290.27 971,695,866. 31 131,919,143.11 T o t a l for fiscal year 1919. .. . 184,457,867. 39 3,018,783,687.29 1,296,501,291.67 652,514,290.08 5,152,257,136.43 44,043,414.30 110,038,601.29 28,615,312.08 113,817,095.93 944,897,366. 34 140,757,151.39 34:903,495.13 139,333,735.95 45,556,651.10 113,895,464.23 905,307, 590.08 125,797,975.12 46,726,771.16 136,095,229.78 49,276,050.40 118,657,904.94 918,879,463. 52 117,251,480.30 105,823,389.13 107,873,045.02 76,508,712.17 108,538,599.91 744,411,072.34 . 128,026,003.05 53,201,441.60 105,052,760.89 32,176,712.96 58,596,048.11 54,544,178.14 37,759,624.98 43,887,135.23 34,814,497.32 28,532,046.38 75,644,088.00 43,324,835. 88 399,097,794. 34 227,781,703.02 268,538,830.96 1,142,555,445.17 257,109,755.23 241,385,761.91 1,092,691,597.63 255,338,026.67 229,527,340.77 1,099,940,623.76 317,258,320. 39 257,501,375.32 1,305,836,608.05 322,902,650. 39 3,944,949,287. 75 1,460,082,286. 91 966,631,163. 83 6,694,565,388. 88 107,670,917. 32 144,710,931.34 147,344,343.27 122, 805,403.43 124,868,247.10 122,664,468.74 111, 432,952.10 111, 599,939. 74 95,867,254. 03 90,985,753.69 94,812,476.67 115,617,135.85 27,083,618.93 164,810,344.05 23,742,762.32 15,943,980.45 67,474,109. 87 120,098,954.39 34,186,441. 81 45,299,962.09 69,012,822.22 56,386,799.99 51,145,880.68 44,758,912.09 230,366,525.45 398,400,665.68 911,397,071.81 220,034,804. 97 275,420,812.25 931,989,397. 32 217,328,249.10 248,563,614.78 921,627,602.72 296,170,665. 82 223,706,398. 89 750,017,152.12 308,564,391. 00 3,206,046,157. 74 1,390,379,823. 28 719,942, 588: 89 5,624,932,960. 91 20,498,245.83 21,053,662. 06 24,724,214.48 24,276,476.04 27,389,468.44 23,.826,407.45 28,628,890. 50 26,778,888.11 34,377,633. 56 27,917,798.24 29,129,227.36 34,301,738.32 J u l y , 1919 A u g u s t , 1919 S e p t e m b e r , 1919 October, 1 9 1 9 . . . . . . . . N o v e m b e r , 1919 December, 1919 J a n u a r y , 1920 F e b r u a r y , 1920 March, 1920 April, 1920 May, 1920 , J u n e , 1920 T o t a l for fiscal year 1920 30,694,297. 30 64,917,691.90 29,327,518. 83 59,551,871. 46 24,036,208.77 716,183,757. 45 25, 599,595.60 55,685,825.49 21,884,850. 58 61,193,604. 70 18,554, 794.65 670,671,179.54 17,485,532. 78 54,223,322. 41 21,152,665. 92 70,511,047.03 29,203,977. 43 727, 543,549. 04 40,417,183.94 108,380,928.20 25,485,133.15 52,262,908. 39 24,722,632. 05 • 564,920,472.13 J u l y , 1920 A u g u s t , 1920... S e p t e m b e r , 1920 October, 1920 N o v e m b e r , 1920 December, 1 9 2 0 . . . : . . J a n u a r y , 1921 F e b r u a r y , 1921 March, 1921 April, 1921 May, 1921 J u n e , 1921 T o t a l for fiscal year 1921 241 SECRETARY OF T H E TREASURY. Statement showing classified receipts, etc.—Contmued. Customs. July,1921 A u g u s t , 1921 S e p t e m b e r , 1921 October, 1921 T o t a l J u l y I t o Oct. 31,1921 $19,796,290.37 26,449,062.28 23,356,692. 08 26,408,043.05 96.010,087.78 Miscellaneous internal revenue Miscellaneous revenue, including P a n a m a Canal. $47,156,908.02 $110,994,768.44 . 47,439,706.64 136,780,512. 99 537,492,412. 86 116,626,662.53 47,986,607.45 112,873,295.45 $31,120,487.96 31,773,904.92 11, 852,492.61 50,579,565.39 Income and profits t a x . 680,075,634.97 .477,275,239.41 | 125,326,450 Total. $2«9,068,454.79 242,443,186. 83 . 689,328.260.08 237,847,511.34 1,378,687,413.04 o RECAPITULATION. A p r . 6, 1917, t o J u n e 65,210, 500. 96 30, 1917 .' Fiscal year 1918 , 179,998,383.49 184,457,867. 39 Fiscal year 1919 322,902,650. 39 Fiscal year 1920 308, 564,391. 00 Fiscal year 1921 J u l y 1,1921, t o Oct. 96,010,087.78 31,1921 G r a n d total 326,906,757. 77 142,391,206. 47 2,314,006,291. 84 872,028,020.27 3,018,783,687.29 1,296,501,291.67 3,944,949,287.75 1,460,082,286.91 3,206,046,157. 74 1,390,379,823.28 680,075,634.97 477,275,239.41 32,930,241.89 298,550,169.10 652,514,290.08 966,631,163.83 719,942,588. 89 567,438,707. 09 3,664,582,864.70 5,152,257,136.43 0,694,56^,388. 88 5,624,932,960.91 125,326,450.88 "1,378,687,413.04' 1,157,143,881.01 13,490,767,817. 36 5,638,657,868.01 2,795,894,904.67 23,082,464,471.05 DISBURSEMENTS. O r d i n a r y , including special, e x c e p t foreign loans. A p r . 6 t o 30, 1917 M a y , 1917 . . . J u n e , 1917 (revised).. T o t a l A p r . 6, 1917, t o J u n e 30,1917 Foreign loans. Total. Deficit. $279,213,777.20 526,565,555.96 410,107,295.39 $195,767,617.M 328, 298,166.79 124,382,137.43 885,000,000.00 1,215,886,628.55 648,447,921.46 $79,213,777. 20 .^200,000.000.00 119,065,555.96 407,500,000.00 132,607,295.39 277,500,000.00 330,886,628.55 209,810,845.97 J u l y , 1917 279,457,364.14 A u e u s t 1917 350,378,285.69 S e p t e m b e r , 1917 463,668,752. 52 October 1917 514,152,057.53 N o v e m b e r , 1917 ..". 613,211,859.32 December 1917 720,156,0.45.69 J a n u a r y , 1918 F e b r u a r y , 1 , 9 1 8 . . . . . . 687,686,985.74 838,293,809.24 March 1918 927,787,779.23 A p r i l , 1918 . 1,084,195,233.65 M a v . 1918 1,269,873,702.42 J u n e , 1918 452,500,000.00 478,000,000.00 396,000,000.00 480,700,000.00 471,929,750.00 492,000,000.00 370,200,000.00 325,()O0,'000.OO 317,500,000.00 287,500,000.00 424,000,000.00 242,700,000.00 Surplus. 578,383,209. 69 662,310,845.97 682,960,833.28 757,457,364.14 670,268,923.19 746,378,285.69 853,910,401.96 944,368,752.52 846,591,030.09 986,081,807.53 1,105,211,859.32 1,000,152,788.90 1,090,356,045.69 986,999,835.82 913,588,54,6.05 1,012,686,985.74 999,044,531.19 1,155,793,809.24 1,005,968,634.97 1,215,287,779. 23 913,449,122.66 1,508,195,233.65 1,512,573,702.42 $419,198,311.36 T o t a l for fiscal year 7,958,672,721.14 4,738,029,750.00 12,696,702„471.14 i9,032,U9,6O6.44 1918 J u l y , 1918 . . A u g u s t , 1918 September, 1918...!! October, 1918 N o v e m b e r , 1918 . . . D e c e m b e r , 1918 J a n u a r y , 1919.. '.".. F e b r u a r y , 1919 March 1919 April,'l919 May 1919 J u n e , 1919 1,264/797,654.44 1,526,263,223.02 1,275,114,285.27 1,175,762,260.99 1,656,299,611.23 1,671,923,855.48 1,672,100,149.83 1,044,516,601.32 1,057,461,785.51 1,019,319,698.11 917,425,614.44 754,639,949.83 343,485,000.00 279,250,000.00 282,150,000.00 489,100,000.00 278,949,697.70 389,052,000.00 290,250,800.00 145,397,302.30 322,350,000.00 409,608,608.27 194,911,857.29 54,750,000.00 1,608,282,654^44 1,805,513,223?b2 1,557,264,285.27 1,664,862,260.99 1,935,249,308.93 2,060,975,855.48 1,962,350,949.83 1,189,913,903.62 1,379,811,785.51 1,428,928,306.38 1,112,337,471.73 809,389,949.83 966,405,517.30 1,653,261,191.30 1,405,379,631.47 1,513,281,501.03 1,624,255,045.74 1,857,073,591.25 1,766,508,108.49 1,027,154,739.79 81,962,839.29 1,006,376,005.82 833,075,261.05 372,110,613.93 T o t a l for fiscal year 15,035,624,689.47 3,479,255,265. 56 18,514,879,955.03 113,362,622,818.60 1919 . 878,623,570.34 J u l y , 1919 711,521,798.39 A u e u s t 1919 565,215,630.24 S e p t e m b e r , 1919 526,194,278.58 October 1919 • 358,832,293.58 N o v e m b e r 1919 465,776,623.92 D e c e m b e r , 1919 J a n u a r y , 1920....'.'.".. 333,293,696.44 275,457,433.96 F e b r u a r y , 1920 525,540,559.40 March, 1920 70073—FI 1921- -16 97,650,000.00 54,275,945.99 102,006,000.00 50,154,927.00 10,000,000.00 26,634,041.10 15,000,000.00 20,000,000.00 12,000,000.00 976,273,570.34 765,797,744.38 667,221,630.24 576,349,205.58 368,832,293.58 492,410,665.02 348,293,696.44 295,457,433.96 537,540,559.40 748,491,867.32 497,258,913.42 475,333,814.93 319,239,450.35 427,446,531.67 . 600,280,932.61 92,955,669.77 65,930,093.19 561,500,064.36 242 REPORT ON T H B FINANCES. .Statement showing classified receipts, etc.— continued'. O r d i n a r y , including special, e x c e p t foreign loans. Foreign l o a n s . Total. $489,713,336.50 380,475,235.43 471,362, .356. 34 $15,616,114.00 15,000,000.00 3,000,000.00 $505,329,450.50 395,475,235.43 , 474,362,350.34 A p r i l , 1920... May, 1920 Juhe, 1920... T o t a l for fiscal year 5,982,006,813.12 1920 295,501,839.31 417,101,594.56 481,044,489. 25 426,497,372.37 426,092,313.00 404,575,091.03 388,179,272.33 351,102,030.45 519,781,297.00 494,091,189.49 368,450,545.01 469,613,958.06 J u l y , 1920 A u g u s t , 1920.. S e p t e m b e r , 1920 October, 1920 N o v e m b e r , 1920 December, 1 9 2 0 . . . . . . J a n u a r y , 1921. F e b r u a r y , 1921 March, 1921. A p r i l , 1921 M a y , 1921 . . J u n e , 1921 Deficit. $188,071,130.11 137,973,860.11 $831,474,251.71 421,337,028.09 6,403,343,841.21 1291,221,547.67' 306,501,839.31 76,135,313.86 447,571,062.45 49,170; 396:77. 496,770,654.89 4 1 4 , 5 ^ , 416.92' . 426,497,372.37 •"206,'462,'567:'40^' 426,092,313.00 150,671,500.75 404,575,091.03 527,414,306.29' 388,179,272.33 "170,'ssi ,'.023.'25' 351,102,030.45 102,538,415.67 536,476,360.91 16,695,063.91 385,151,241.81' 494,091,189.49 197,920,523.67 368,450,545.01 144,744,14^.12 469,613-, 958.06 280,403,194.06- 11,000;000.00 30,469,467.89 15,732,165.64 T o t a l for fiscal ye,ar 1921...... . 5,042,030,991.86 73,890,697.44 5,115,927,689.30 321,818,569.24 - 291,157,847.34 266,523,932.79 304,157,955.85 321,818,569.24 291,157,847.34 266,523,932.79 304,157,955.85 T o t a l J u l y I t o Oct. 1,183,658,305.22 '31, 1921 1,183,658,305.22 J u l y , 1921 A u g u s t , 1921... S e p t e m b e r , 1921 October 1921 Surplus. 1509,005,271.61! 112,750,114.45 48,714,660.51 422,804,327. 29^ 66,310,444.51 1195,029,107.82 RECAPITULATION. A p r , 6, 1917, t o J u n e 30, 1917 Fiscal year 1918 Fiscal year 1919.1. Fiscalyear 1920.:.... Fiscal year 1921 J u l y 1, 1921, t o Oct. 31, 1921 G r a n d total 648,447,921.46 330,886,628.55 885,000,000.00 1,215,886,'628.55 7,958,672,721.14 4,738,029,750.00 12,696,702,471.14 9,032,119,606.44 15,035,624,689.47 3,479,255,265.56 18,514,879,955.03 13,362,622,818.60 5,982,006,813.12 421,337,028.09 6,403,343,841.21 5,042,030,991.86 73,896, 697.44 5,115,927,689.30 1,183,658,305.22 1,183,658,305.22 291,221,547.67' 509,005,271. or 195,029,107.82' 35,532,880,149.36 9,597,518,741.09 45,130,398,890.45 122,047,934,419.40 1 Net. RECEIPTS AND DISBURSEMENTS. fOn t h e basis of d a i l y T r e a s u r y statements..] DISBURSEMENTS'. RECEIPTS. N e t b a l a n c e i n t h e general fund A p r . 5, 1917 Receipts, exclusive of p r i n c i p a l of p u b l i c d e b t , A p r . 6, 1917, to O c t . 31, 1 9 2 1 . . . . P u b l i c d e b t receipts A p r . 6,1917, to Oct. 31, 1921 $92,317,710.27 23,082,464,471.05 o 74,773,164,265,43 Disbursements, exclusive of p r i n c i p a l of p u b l i c d e b t , A p r . 6, ,1917, to Oct, 31, 1921 $45, 130,398,890,45"' Public debt disbursements Apr. 6, 1917, to O c t . 31, 1921 52, 591,142,398.67" N e t b a l a n c e i n t h e general f u n d Oct.31,1921 226,405,157, OS- 97,947,916,446.75 PUBLIC DEBT AND T o t a l d i s b u r s e m e n t s for w a r • period, exclusive of p r i n c i p a l of p u b l i c d e b t $45,130,398,890.45 T o t a l receipts for w a r period, exclusive of p r i n c i p a l of p u b lic d e b t , 23,082,464,471.05 Excess of d i s b u r s e m e n t s over receipts, for w a r period 22,047,934,.419,40 D e b t decrease D e c . 31, 1920, on a c c o u n t of fractional currencylost a n d destroyed 4,842,066,45 97,947,946,446.75EXPENDITURES, T o t a l gross d e b t O c t . 31,1921. T o t a l gross d e b t A p r . 5,. 1917. $23; 459,148,496:59' 1; 281,968,696.28- Gross d e b t increase for period Net balance in the general fund O c t . 31, ^ 1921 • $226,405,157.63; Net balance in the general • fund A p r . 5, 1917 92,317,710, 27 •22,043,092,352. 95 N e t increase i n b a l a n c e i n general fund Net debt period increase for 134,087,447,36- war 22,043,092,352.95. EXHIBIT 38. PUBLIC DEBT OF.THE UNITED STATES—KECAPITULATION OF I S S U E S AND RETIREMENTS, FISCAL YEAR ENDED JUNE 30, 1921. M a t u r e d d e b t on w h i c h i n t e r e s t h a s ceased. Detail. Interest-bearing debt. D e b t bearing n o interest. Certificates of indebtedness. Old d e b t . Prewar loans. Certificates of indebtedness Treasury (war) savings securities. Treasury notes. Ul Gross p u b l i c d e b t , J u n e 30,1920 N e t securities o u t s t a n d i n g J m i e 30,1920 Securities issued d u r i n g fiscal y e a r : Upon— Original s u b s c r i p t i o n R e c e i p t s of lawful m o n e y ExchangeC o u p o n for registered • Of d e n o m i n a t i o n s T r a n s f e r of o w n e r s h i p Claim s e t t l e m e n t s C u r r e n c y reissue Total Securities r e t i r e d d u r i n g fiscal y e a r : A c c o u n t of r e i s s u e Exchange— C o u n o n for registered Of d e n o m i n a t i o n s - . T r a n s f e r of o w n e r s h i p Claim settlements C u r r e n c v reissue Total $230, 075, 349. 91 $1,847,200. .26 $4, 900,500 $883, 549, 390 $2,768, 925, 500 $827, 419, 021. 36 230,075, 349. 91 1, 847,200. 26 4, 900,500 883,549,390 2, 768, 925, 500 827, 419, 021. 36 o w > - pi 178, 880 8; 486, 964,950 28,157, 080; 10 $311,191,600 40,186,945. 00 ' 3,230,780 53,167, 840 11, 450 O H 1, 827, 000 187,338,000 319, 324, 000. 00 359, 510, 945. 00 56, 588,950 8,676,129, 950 28,157, 080,10 311,191,600 > Ul • 3,230, 780 , 53,167, 840 11, 450 1, 827,000 187, 338,000 d ~^" 319, 324, 000. 00 319, 324, 000. 00 56,410, 070 189,165, 000 to >^ CO Public debt of the United States—Recapitulation of issues and retirements, fiscal year ended June 30, 1921—Continued, Matured d e b t on which interest h a s ceased. Detail, Old debt. A c c o u n t of r e d e m p t i o n Total T o t a l r e t i r e m e n t s (for reissue a n d r e d e m p t i o n ) Securities o u t s t a n d i n g J u n e 30,1921 P l u s securities o u t s t a n d i n g ( m a t u r e d d u r i n g fiscal year) Less securities o u t s t a n d i n g ( m a t u r e d d u r i n g fiscal year) N e t securities o u t s t a n d i n g a n d J i m e 30,1921 Interest-bearing debt. Debt bearing no interest. Certificates of indebtedness. P r e w a r loans. Certificates of indebtedness. Treasury (war) Treasury notes. s a v i n g s securities. $42, 303,387.14 $151,580,00 $4,755. 000 S8, 547, 461, 500 $161, 470,691. 09 42,303,387.14 151,580,00 4,755, 000 8, 547, 461, 500 161, 470, 691. 09 361,627,387.14 151,580, 00 4, 755, 000 $56,410,070 8, 736, 626, 500 161,470, 691. 09 1 227,958,907, 77 1,695,620, 26 145, 500 883, 728,270 2, 708, 428, 950 694,105,410. 37 $311,191,600 O- 9,098, 500 issuable, 227,958,907,77 1,695,620, 26 9, 244, 000 o pi 9, 098, 500 883, 728, 270 2,699,330, 450 1 Net amount only; $152,979,025.63 gold reserve against United States notes deducted. 694,105,410. 37 311,191, 600 ^: W > o Ul Public debt of the United States—Recapitulation of issues and retirements, fiscal year ended June 30, 1921—Continued. - Interest-bearing debt—Continued. Liberty loans—Bonds and notes. Detail, First. Gross p u b l i c d e b t , J u n e 30.1920 Less securities issuable J u n e 30,1920 Plus unadjusted item N e t securities o u t s t a n d i n g J u n e 30,1920...-.. Securities issued d u r i n g fiscal y e a r : Up o n Original s u b s c r i p t i o n R e c e i p t s of lawful m o n e y S u r r e n d e r , i n t e r i m certificates Conversion ExchangeRegistered for c o u p o n C o u p o n for r e g i s t e r e d . Of denomination.s. . _ T e m p o r a r y for pp.rTnanp.nt. , M u t i l a t e d for p e r f e c t . . Coupon error T r a n s f e r of o w n e r s h i p Claim s e t t l e m e n t s C u r r e n c y reissue Total Securities retired d u r i n g fiscal y e a r : A c c o u n t of reissue—_ S u r r e n d e r , i n t e r i m certificates Conversion ExchangeRegistered for c o u p o n C o u p o n for r e g i s t e r e d . Of dftnominations. . _ _ ^ T e m p o r a r y for p e r m a n e n t M u t i l a t e d for p e r f e c t . . C o u p o n error Transfer of o w n e r s h i p . . . : . . . Claim s e t t l e m e n t s Currency reissue Total Second Third. Fourth. Total. Victory. $1,952,458,800 25,933,400 850 $3,325,307,000 192,990,700 $3,662,715,800 10,673,300 $6,394,354,500 $4,246,365,350 585,950 1,926,526,250 3,132,316,300 3,652,042,500 6,394,354,500 4,245,779,400 Total Liberty loans. $19,581,201,450 $24,297,918,411.53 230,183,350.00 230; 183,350 850.00 . 850 19,351,018,950 24,067,735,911,53 23,100 8,826,515,610.10 40,186,945, 00 230,350.00 496,852,900,00 o 18, 000 5,100 230,350 52,040,000 50,747,350 72,860,150 53,102,250 1276; 951,900 8,700 50 32,165,450 29,500 538,135,700 - 267,457,250 177,355,650 230,350 496,852,900 318,745,800 952,139,550 1,209,651,450 1 7,439,161,300 172,550 318,745,800, 00 955, 370,330, 00 1,211,478,450, 00 7,439,161,300, 00 172,550, 00 1,050, 00 391, 458,640, 00 1,622,100, 00 319,324,000.00 42,036,250 161,561,400 235,520,150 11,846,165,550 38,350 1,000 23', 290,650 100,200 50,791,100 134,574,300 217,581,900 1610,718,250 33,050 101,682,950 461,483,150 351,453,900 4,705,325,600 62,100 73,488,150 121,660,550 351,993,250 24,127,400 206,450 43,562,800 1,221,550 27,806,566 52,950 150,952^800 1,610,650 2,486,069,200 1,038,032,450 5,664,797,150 842,507,000 10, 569,541,500 20,001,120,025,10 . 266,958,050 228,000 476,914,950 228,000.00 478,914,950,00 318,745,800, 00' 955,370,330, 00 1,211,478,450,00 7,229,952, 700:00 172,550, 00 1,050, 00 391,458,640, 00 1,622,100.00 319,324,000, 00 10,905,268,570, 00 ' 30,350 pi Pi O tn Ul d 228,000 47,819,700 162,137,200 50,747,350 72,860,150 53,102,250 254,937,000 8,700 50 32,165,450 29,500 42,036,250 161,561,400 235,520,150 1,668,344,600 38,350 1,000 23,290,650 100,200 50,791,100 134,574,300 217,581,900 599,977,700 33,050 101,682,950 461,483,150 351,453,900 4, 706,693,400 62,100 73,488,150 121,660,550 351,993, 250 24,127,400 206,450 43,562,800 1,221,550 27,806, 500 52,950 31S, 745, 800 952,139,550 1,209,651,450 7,229,952,700 • 172,550 1,050 150,952, 800 1,610,650 511,898,150. 2,293,029,800 1,027, 291,900 5,666,159,850 841,989,800 10,340,369,500 30,350 1 Includes permanent bonds on consignment as follows; First loan $328,400; second loan 1147,950; third loan $67,250; total $543,600. CJX bO Public debt of the United States—Recapitulation of issues and retirements, fiscal year ended June 30, 1921—Continued. ' Interest-bearing debt—Continued. Liberty loans—Bonds a n d notes. Detail, . First, A c c o u n t of r e d e m p t i o n : Purchased t h r o u g h Sinking fund B o n d p u r c h a s e fund Proceeds of r o p a y m e n t of l o a n s t o foreign Governments. R e c e i v e d for F e d e r a l e s t a t e t a x e s Gifts Forfeitures Miscellaneous receipts Redemption. R e i m b u r s e m e n t s t o a g e n t s for u n s o l d securities Currency redemption Fourth. Victory. $261,250,250 70,375,300 1 $200,800 S2,145,950 16,624,000 700 17,000 $44,365,550 16,792,700 50 2,250 $27,427,800 111,939,250 450 17,500 129,100 1970,450 '"i,'456' Total Liberty loans. $261,250,250 70,375,300 $261,250,250.00 70,375,300. 00 73,939,300 1 26,527,200 500 38,900 129,100 73,939,300. 00 1 26,527,200, 00 500, 00 38,900.00 129,100. 00 8,712,100,043.18 1,738,727,91 42,303,387.14 201,500 8,786,950 51,160,550 39,514,100 332,597,450 432;260,550 9,188,402,708. 23 512,099,650 2,301,816,750 1,078,452,450 5,705,673,950 1,174,587,250 10,772,630,050 20,093,671,278, 23 1,952,562,300 23,400 328,400 , 3,316,568^750 99,250 147,950 3,611,622,500 6,353,477,700 1,367,800 3,913,699,150 71,200 19,147,930,400 1,561,650 543,600 23,975,184,658.40 1,561,650.00 543,600.00 11,952,257,300 1 3,316,520,050 1 3,611,555,250 1 6,354,845, 500 13,913,770,350 Total.. T o t a l r e t i r e m e n t s (for reissue a n d r e d e m p t i o n ) — Third. Second, Total. o pi O •a > Securities o u t s t a n d i n g J u n e 3 0 , 1 9 2 1 . . . P l u s securities issuable d u r i n g fiscal y e a r 1922 T^ess p e r m a n e n t b o n d s on c o n s i g n m e n t : N e t securities o u t s t a n d i n g a n d issuable, J u n e 30,1921 1 Includes items in transit on June 30, 1921, asfollows: First loan Second loan Third loan Fourthloan. Victory loan Total ". 67,250 : : : $1,500 16,500 5,050 14,850 10, OGO 47,000 119,148,948,450 123,976,202,708.40 • o Ul 247 SECRETARY OE THE TREASURY. E X H I B I T 39. • I S S U E S AND R E T I R E M E N T S , PREWAR LOANS MATURED . Fiscal year ended June 30, 1921. Outstanding Outstanding June 30, during fiscal June 30, 1920. year. 1921. Detail.. Funded loan of 1891, contmued at2 per cent, called for redemp tion May 18,1900 : ..Funded loan of 1891, matured Sept. 2,1891 ,Loan of 1904, matured Feb, 2 1904 Funded loan of 1907, matured July 2, 1907 Refunding certificates, matured July 1,1907 Old debt matured at various dates prior to July 1,1891 iiOan of 1908-1918.: Total ; EXHIBIT $1,000,00 19,800,00 13,050,00 384,400,00 10,410,00 898,680,26 519,860.00 $3,600.00 60,00 4,720,00 143,200,00 $1,000.00 19,800.00 13,050.00 380,800,00 10,350.00 893,960.26 376,660.00 1,847,200,26 151,580,00 1,695,620,26. 40. I S S U E S A N D R E T I R E M E N T S — D E B T B E A R I N G NO I N T E R E S T . ^ Fiscalyear ended J u n e 30, 1921. Outstanding June 30, 1920, DetaiL 'Old demand notes (United States notes... .$346,681,016,00 Less gold reserve. 152,979,025,63 "National bank notes—redemption account . 'Fractional currency Total : Retired. Issued Outstanding June 30, 1921. $53,012.50 $53,012.50 193,701,990.37 $319,324,000.00 $319,324,000.00 iQQ 701 qqn ^ 7 29,478,280.00 6,842,067.04 40,186,945.00 37,460,631.00 2 4,842,756.14 32,204,594.00 1,999,310.90 230,075,349.91 359,510,945.00 361,627,387.14 227,958,907.77 1 Figures furnished by the Treasurer of the United States. ' Includes $4,842,066,45 charged ofl—estimated to have been lost or destroyed (see public debt statement *of December 31, 1920). E X H I B I T 41. I S S U E S AND R E T I R E M E N T S , P R E W A R LOANS, UNMATURED. Fiscal year ended June 30, 1921. Consols of 1930. Detail. vOutstanding June 30,1920.....' .' Coupon. Registered. $1,394,750 $598,329,300 $599,724,050 203,000 26,739,600 203,000 26,739,600 26,942.600 26,942,600 26,739.600 203,000 26,739,600 aPlus securities issued during fiscal year: Upon— Exchange—coupon for registered Transfer of ownership Total. . . . . . . Less securities retired during fiscal year: Upon— Exchange—coupon for registered Transfer of ownership Total ^Outstanding June30,1921 . . . . . . . ... ^. 203,000 •<- Total. ... 203,000 26,739,600 26,942,600 ... 1,191,750 598,532,300 599,724,050 248 REPORT ON T H E FINANCES. Issues and retirements, prewar loans, unmatured, fiscal year ended June 30, 1921Continued. 4 p e r c e n t loan of 1925. Detail. O u t s t a n d i n g J u n e 30, 1920 : Coupon. Registered, $11,700,950 $106,788,950 $11% 489,900 2,075,000 16,708,300 50 '3-, 075,000 16,708,300 50 18,783,350 18,783,350 16,708,300 50 2,075,000 16,708,300. 50 P l u s securities issued d u r i n g fiscal year: Up o n E x c h a n g e — c o u p o n for registered Transfer of o w n e r s h i p Claim settlements .. Total. . Less si3curities retired d u r i n g fiscal year: Up o n E x c h a n g e — c o u p o n for registered Transfer of ownership Claim settlements 2,075,000 - Total, Total. 2,075,000 16,708,350 18,783,350 O u t s t a n d i n g J u n e 30 1921 9,625,950 108,863,950 118,489,900 2 per cent P a n a m a of 1916-1936. Detail.. Coupon. O u t s t a n d i n g .Tune 30,1920 . $6,040 P l u s securities issued d u r i n g fiscal year: Upon— Transfer of ownership .. .. Total Less securities retired d u r i n g fiscal year: Upon— Transfer of ownership Total •- O u t s t a n d i n g .Tune 30,1921 •. 6,0-10 Registered. $48,948,140 Total: S^ 8,9.54,180 2,476,240 c> 476 9.40 2,476,240 2,476,240 2,476,240 • 2 476 240 2,476,240 2 476 240 48,948,140 48 954 ISO 2 per c e n t P a n a m a of 1918-1938. Detail. 'Coupon. O u t s t a n d i n g J u u e 30, 1920...- $111,780 P l u s securities issued d u r i n g fiscal year: Upon— E x c h a n g e — c o u p o n for registered ' Transfer of o w n e r s h i p Total Less securities retired d u r i n g fiscal year: Upon— E x c h a n g e — c o u p o n for registered Transfer of o w n e r s h i p Registered, Total. $25,835,620 $25 947 400 40,100 1,184,120 40 100 1 184'120 1,224,220 1 224 220 1,184,120 40,100 1,184 120 40,100 Total 40,100 1,184,120 1 224 220 O u t s t a n d i n g J u n e 30,1921 71,680 25,875,720 25 947 400 249 SECEETAEY OF THE TEEASUEY. lisues and retirements, prewar loans, unmatured, fiscal year ended June 30, 1921Continued. 3 per cent P a n a m a of 1961. Detail. Coupon. $6,291,100 O u t s t a n d i n g J u n e 30,1920 P l u s securities issued d u r i n g fiscal year: Upon— Exchange—coupon for registered , Claim s e t t l e m e n t s Total • Less securities retired d u r i n g fiscal year: Upon— E x c h a n g e — c o u p o n for registered Transfer of o w n e r s h i p Claim s e t t l e m e n t s - Registered. Total. • $43,708,900 $50,000,000 285,500 4,421,400 .2,000 285,500 4 421-400 ' 2 000' 4,708,900 4,708,900 4,421,400 2,000 285,500 4,421,400 2,000 . . . 285,506 Tota'. O u t s t a n d i n g J u n e 30, 1921 285,500 4,423,400 4,708,900 6,005,600 43,994,400 50,000,000 2J p e r cent p o s t a l savings. Detail. Coupon. O u t s t a n d i n g J u n e 30, 1920 ; P l u s securities issued d u r i n g fiscal year: Upon— Original issue E x c h a n c p — c o u n o n for resfistered $10,984, .500 $11,539,360' 10,440 158,440 80,080 855,580 • 9,400 178,88Q 80,080 855,580 9,40O 10,440 1,113,500 1,123,940 855,580 9,400 80 080^ 855,580 9,400 Claim s e t t l e m e n t s Total Total. $554,880 . Less securities retired d u r i n g fiscal year: Upon— E x c h a n g e — c o u p o n for registered Registered. 80,080 . Claim s e t t l e m e n t s Total : O u t s t a n d i n g J u n e 30,1921 80,080 864,980 945,060 485,220 11,233,020 11,718,240 3 p e r e 3nt conversion b o n d s . Detail. Coupon. '$20,533,200 O u t s t a n d i n g J u n e 30,1920 P l u s securities issued d u r i n g fiscal year: Upon— E x c h a n g e — c o u p o n for registered Transfer of ownership : Total Less securities retired d u r i n g fiscal year: Up o n E x c h a n g e — c o u p o n for registered Transfer of ownership .• : : Total, $8,361,300 $28,894,500 547,100 782,600 547,100 782,600 1,329,700 1,329,700 782,600 547,100 782,600 547,100 . . Total O u t s t a n d i n g J u n e 30,1921 Registered. 547,100 782,600 1,329,700 19,986,100 8,908,400 28,894,500 250 REPORT ON T H E FINANCES. Issues and retirements, prewar loans, unmatured, fiscal year ended June 30, 1921Co ntinued. Total prewar loans. Detail. Outstanding June 30,1920..., P l u s securities issued d u r i n g fiscal year: Upon— Original issue. ' E x c h a n g e - ^ c o u p o n for registered. Transfer of. ownership Claim' s e t t l e m e n t s Total. Less securities retired d u r i n g fiscal year: Up o n E x c h a n g e — c o u p o n for registered. Transfer of ownership Claim s e t t l e m e n t s , Total O u t s t a n d i n g J u n e 30,1921. Coupon, Registered. $40,592,680 $842,956,710 $883,549,390 10,440 108,440 3,230,780 53,167,840 11,450 178,880 3,230,780 53,167,840 11,450 10,440 56,578,510 56,588,950 53,167,840 11,450 3,230,780 53,167,840 > 11,450 3,230,780 Ilotal, 3,230,780 53,179,290 56,410,070 37,372,340 846,355,930 883,728,270 EXHIBIT 42. IsSulss - AND R E T I R E M E N T S — T R E A S U R Y (WAR) SAVINGS SECURITIES. , Fiscal year ended June 3D, 1921. • Detail. Series 1918, Securities o u t s t a n d i n g J u n e 30, 1920 ( n e t cash receipts) Accrued i n t e r e s t liabihties ( a c t u a l a n d c o n t i n g e n t ) i . . T o t a l v a l u e of o u t s t a n d m g securities J u n e 30, 1920 Issued (cash deposits) d u r i n g fiscal year 1921 • Series 1920. Series 1921. Thrift s t a m p s , unclassified sales, e t c . Total O u t s t a n d i n g J u n e 30, 1921 ( n e t cash receipts). Accrued i n t e r e s t habilities ( a c t u a l a n d c o n t i n g e n t ) i $827, 419,021, 36 2 74,750,114, 36 $688,131,241.01 70, 869, 628. 84 $112, 984,503, 60 3, 880,485. 52 $26, 303,276.75 759,000, 869, 85 116, 864,989.12 26, 303,276, 75 / 3 25,255,246, 04 \ 3 35,903,011,53 96, 853, 33 } 14, 718,408. 41 $13,341,830,85 2,379,13 133, 208,523, 90 14,617, 59 14,672,786,43 1,651,809. 66 10,444,078. 44 133,210,903,03 14,687, 404.02 580,17.5, 584, 02 95, 273, 993,11 675,449,577,13 (2) 902,169,135, 72 $10, 647, 753.00 28,157,080,10 69,921, 53 1, 406,461. 41 113.00 1, 738,727, 91 159,731,963,18 12,095,888.10 1,476, 382, 94 113.00 161,470,691, 09 62,490,941. 38 6,640,184. 50 28,925,797,06 (?) 11, 865,447. 91 10,647,640.00 694,105,410, 37 101,914,177.98 ' 69,131,125. 88 28,925,797, 06 11,865,447,91 10, 647,640. 00 796,019, 587.98 (2) 1 Partly estimated, 2 Figures not available for compilation of accrued interest.liabilities on series 1920 and 1921 securities outstanding. 3 Adjustment between series on account of deposits which had previously been credited in Treasurer's account in year received instead of against year ofsale. Total, Ul O Pi ;> pi R e t i r e d d u r i n g fiscal y e a r 1921: R e i m b u r s e m e n t s t o a g e n t s for unsold securities Redemptions : ../.... T o t a l v a l u e of o u t s t a n d i n g securities J u n e 30, 1921 Series 1919, O H w > Ul bO E X H I B I T 43. cn to I S S U E S A N D R E T I R E M E N T S — F I R S T LIBERTY LOAN OF 1932-1947. Fiscal year ended June 30, 1921. 4's. 3i's. 4i 's. Second c o n v e r t e d 4^'s. . Detail. Gross securities o u t s t a n d i n g a n d issua b l e , J u n e 30, 1920 Less securities i s s u a b l e . . Unadjusted items, plus N e t securities o u t s t a r i d i n g J u n e 30, 1920. Interim certificate-s. Registered. Coupon. Registered. Coupon. .$600,050 $314,585, 200 $1, 094,889.150 3,200 850 $16,566,050 $49,237,000 150,700 600,050 314, 585, 200 • 1,094,886,800 16, 566,0.50 49,086,300 P l u s securities issued d u r i n g fiscal year: Upon— Surrender, i n t e r i m certificates... Conversion ExchangeRegistered for coupon C o u p o n for registered Of d e n o m i n a t i o n s T e m p o r a r y for p e r m a n e n t . . . M u t i l a t e d for perfect C o u p o n error Transfer of o w n e r s h i p . Claim s e t t l e m e n t s Coupon." Registered. $102,061,700 . $371, 027, 500 $1,049,350 170,800 25,608, 700 101,890,900 345,418,800 5, 981, 950 46,058, 050 1, 049,350 144, 750 44,787,460 23,267,650 .1,100 2,350 50 . -550 28, 348, 700 6,500 1,750 123,450 5,600 79,773,500 68,289, 550 156,750 5,770, 300 21,386,600 28,250 51,417, 200 6,29.5,4.50 ' 44,900 3,300 SOO 3,682,450 12, 000 2, 750 10, S50 100 2,590,000 31,060,300 353, 782,350 39, 050 • 41, 524, 250 28, 250 660,000 1, 628, 950 44, 900 21., 386,600 29, 056,300 25.1, 024,9.50 2,438, 200 o •1,926,526,250 230,350 52, 040,000 50, 747,350 72,860,150 53,102, 250, 1 276, 951,900 8,700 50 32,16a, 450 29,500 538,13.5, 700 228, 000 . 47,819,700 , 5, 770,300 144,750 51,417,200 23, 267,650 2,442, 800 112, 300 2, 281, 000 29,056,300 1 272,892, 900 • 2,050 Pi fej hj OW $2, 442,800 $1, 952,458,800 25 933.400 850 28,100 666,000 1,778,000 450 228,000 44,787,400 Coupon. _^ 230,350 Total Less securities r e t i r e d d u r i n g fiscal y e a r : A c c o u n t of r e i s s u e S u r r e n d e r , i n t e r i m certificates... Conversion . Exchange— Registered for counon C o u p o n for registered Of d e n o m i n a t i o n s . T e m p o r a r y for p e r m a n e n t . . . Registered. Total, first l o a n . 50, 747,350 28,100 ' 72, 860,1.50 53,102, 2.^0 112; 300 1 2, 283,100 " 254,937. 060 > o Ul 1,166 M u t i l a t e d for perfect . . . Coupon error.. . Transfer of o w n e r s h i p Claim s e t t l e m e n t s Total. . . A c c o u n t of r e d e m p t i o n R e c e i v e d for F e d e r a l taxes Forfeitures 228,000 • -556 4b6 3,306 i, 7.50 123,4.50 5,600 800 3,682,450 12,000 2,750 10,850 100 73,143,700 74,689,000 6, 568, 700 43, 848,700 9,468,050 301,472,650 5.5,850 . 50 32,165,4.50 29,500 • 2,423, .500 511, 898,150 estate Total.... T o t a l r e t i r e m e n t s (reissue a n d , redemption) Securities o u t s t a n d i n g J u n e 30,1921 P l u s securities issuable J u n e 30 1921 Less p e r m a n e n t b o n d s on c o n s i g n m e n t . Securities o u t s t a n d i n g a n d issuable 8,166 2,0B6 2,350 50 28, 348, 700 6,500 19,100 2 181, 700 2 200,800 700 550 19,100 181, 700 201, 500 150 550 150 228,000 73,143,700 '74,689,150 6, 568,700 43, 849,250 9,487,150 301,654,350 55, 850 2,423,500 512,099,650 372, 050 321, 215,000 1,088,487,200 10,154,100 7, 827, 050 1,650 123,470,050 397,546,800 19,6.50 1,032, 550 2,457, 500 2,100 1, 952, .562, 300 23,400 372,050 321, 215, 000 1,088,487, 200 10,154,100 7,828,700 123,470,050 2,459, 600 328,400 1,952,257,300 I Includes $328,400 permanent first 4^'s on consignment. 328,400 397,238,050 • 1,032, 5.50 2 Includes $1,500 in transit on June 30, 1921, Ul O pi o H W > d w Ul to CO 254 REPORT ON THE FINANCES. EXHIBIT 44. I S S U E S A N D ^ R E T I R E M E N T S — S E C O N D LIBERTY LOAN OF 1 9 2 ? - l 9 4 2 . Fiscalyear ended June 30, 1921. Second Liberty Loan of 1927-1942. Detail. 4's. Registered. Total, second loan, 4i's. ^ Coupon. Registered. Coupon. Gross securities outstanding and issuable, June 30, 1920 . . . $65, 896, 250 $174,107,000 $529, 072, 400 $2, 556, 231,350 $3,325,307, OUO 727, 250 Less securities issuable 191, 959, 800 192,990, 700 303,650 -2,050 -3,050 Unadjusted items. .• ipius -f 5,100 Net securities outstanding June 30, 1920 . Plus securities issued during fiscal year: Upon— f Conversion ; 0 ExchangeRegistered for coupon... Coupon for registered.... Of denominations Temporary for permanent ... Mutilated for perfect Coupon error Transfer of ownership Claim settlements Total 65, 901, 350 173,803,350 528, 343,100 22, 383,100 115; 150 1,900 863,100 4,000,450 7,151, 800 9,200 186, 050 29, 050 11,650 332,150 12,036,200 Less securities retired during fiscal year: Account of reissueConversion 25,157, 250 136, 979, 950 ExchangeRegistered for coupon . . 863,100 Coupon for registered.. 115,150 Of denominations 4,000, 450 Temporary for perma6, 850, 800 . nent Mutilated for perfect 1,900 9,200 • Coupon error Transfer of ownership 186, 050 29,050 11, 650 Claim settlements 26, 237,350 147, 967, 200 Total Account of redemptionProceeds of repayment of loans to foreign Governments Received for Federal estate taxes.. Forfeitures Total 161, 446, 250' 2,364,268,500 3,132, 310, 300 154, 972, 550 177,355, 650 . 41,173,150 42, 036, 250 161, .561, 400 235, 520,150 . 231, 519, 700 11, 839,013, 750 11, 846,165, 550 38, 350 24, 550 1,000 1,000 23,104,600 23, 290,650 52, 200 7, 300 100, 200 2,700 206, 988, 850 2, 266,712,000 2, 486,069,200 162,137, 200 41,173,150 161, 446, 250 231, 519, 700 42, 036, 250 161, 561,400 235. .520.1.50 23,104,600 52, 200 1,661,493,800 1,668,344,600 24,550 1 38,350 1,000 1. 000 23,290,650 100, 200 7,300 64, 332, 650 2,054, 492,600 2,700 2, 293, 029, 800 ' 95,100 2, 050, 850 2,145, 950 1,000 1, 404, 750 500 2 5, 219, 250 15, 500 2 6, 624, 000 17, 000 1,000 1. .500. 350 • 7, 285,600 8,786, 950 Total retirements (reissue 26, 237,350 147, 968, 200 and redemption) 65, 833,000 2,061,778, 200 2,301, 816,750 Securities outstanding June 30, 1921. 39, 996,150 Plus securities issuable June 30, 1921 37, 871, 350 669, 498,950 2,650 2, 569,202,300 96,600 3, 316, 568,750 99,250 Less permanent bonds on consignment Securities outstanding and issuable.. 39, 996,150 147, 950 37, 874,000 669,498, 950 2, 569,150,950 147,950 3, 316, 520,050 1 Includes $147,950 permanent second 4J's on consignment. 2 Includes $16,500 in transit on June 30, 1921. ' . SECRETARY OF T H E TREASURY. . .EXHIBIT 255 45. I S S U E S AND R E T I R E M E N T S — T H I R D L I B E R T Y LOAN OF 1928, Fiscalyear ended June 30, 1921. Detail. Registered. Gross securities outstanding and issuable Jmie 30, 1920.. Less securities issuable $3,662,7]5,.800 .10,673,300 2, 922,753, 550 3,652, 042, 500 . 729,288,950 Plus securities issued during fiscal year: Upon— ExchangeRegistered for coupon ;• Coupon for registered. Of denoininations Temporary for permanent. Mutilated for perfect Transfer of ownership . Claim settlements 134, 574,300 „ 13,300 24,127, 400 119,150 Total 158, 834,150 Total. . . . : . . . Total. $729, 288,950 $2,933,426,850 10, 673,300 Net securities outstanding June 30, 1920 Less securities retired during fiscal year: Account of reissueExchange— Registered for couponCoupon for registered Of denoininations Temporary for permanent Mutilated for perfect.. . . Transfer of ownership Claim settlements. Coupon. 50, 791,100 . • .... • '. • Account of redemption— Proceeds of repayment of loans to foreign Governments. . ". Received for Federal estate taxes Gifts Forfeitures .. 50, 791,100 217, 581, 900 1610,718,250 19, 750 87, 300 50, 791,100 134, 574, 300 217, 581, 900 1610, 718, 250' 33, 050 • 24,127, 400 206,450' 879,198, 300 1,038,032,450^ 134, 574, 300 217, 581,900 599,977, 700 19,750 87,300 50, 791,100' 134, 574, 300 ' 217,581,900 599, 977, 700-' 33,050 24,127,400' 206 450' 75, 050, 950 952, 240, 950 1, 027, 291, 900^ 10, 371,900 848, 500 33, 993,650 2 5, 944, 200 50 1, 750 44, 365, 5502 6, 792, 700 50^ 2,250 13,300 24,127,400 119,150 500 Total. . . 11,220, 900 39, 939,650 51,160,550' Total retirements (reissue and redemption),.. 86, 271,850- 992,180,600 1, 078,452,450 801, 851, 250 2, 809, 771,250 67,250 2,809, 704,000 3,611,622,500' 67, 250 3,611, 555,250 Securities outstanding June 30, 1921 Less permanent bonds on consignment. Securities outstanding and issuable 801, 851, 250 • 1 Includes $67,250 permanent third 4^'s on consignment, 2 Includes $5,050 in transit on June 30, 1921, 256 . REPORT ON T H E FINANCES. EXHIBIT 46. I S S U E S AND RETIREMENTS—FOURTH L I B E R T Y LOAN OF 1933-1938. Fiscal year ended June 30, 1921. Registered. Coupon. $1,086,087,600 $5,308,266,900 Detail. N e t securities o u t s t a n d i n g J u n e 30 1920 :P1US securities issued d u r i n g fiscal 3"ear: Upon— " , Original s u b s c r i p t i o n Exchange— Registered for c o u p o n C o u p o n for r e g i s t e r e d . 0 f denominations T e m p o r a r y for p e r m a n e n t M u t i l a t e d for perfect Transfer of o w n e r s h i p Claim s e t t l e m e n t s .. Total : . . L e s s securities retired d u r i n g fiscal year: A c c o u n t of r e i s s u e Exchange— • Registered for coupon ' Coupon for r e g i s t e r e d . Of d e n o m i n a t i o n s T e m p o r a r y for p e r m a n e n t . . . . M u t i l a t e d for perfect Transfer of o vvnership • Claim s e t t l e m e n t s . . i . A c c o u n t of r e d e m p t i o n Proceeds of r e p a y m e n t of loans to foreign Governments R e c e i v e d for F e d e r a l e s t a t e t a x e s Gifts Forfeitures . Miscellaneous receipts Total T o t a l r e t i r e m e n t s (reissue a n d r e d e m p t i o n ) . . . - Securities o u t s t a n d i n g a n d issuable 34,700 43,562,800 133,550 1,088,000 5,159,582,950 .5,664,797,150 46i,483.i50 351,453,900 4,706,693,400 27,400 1,088,000 101,682,950 461,483,150 351,453,900 4,706,693,400 62,100 • 43,562,800 1 221 550 5,520,745,850 5 666 159 850 27,427,800 1 10,958,100 450 17,500 129,100 27,427,800 111,939,250 450 17,500 129,100 > 145,414,000 ^ 5,100 101,682,950 461,483,150 • 3.51,453,900 4,705,325,600 62 100 43,562,800 1,221 550 101,682,950 Total Securities o u t s t a n d i n g J u n e 30,1921 P l u s securities issuable J u n e 30, 1921 5,100 351,453,900 4,705,325,600 27,400 505,214,200 . 981,150 $6,394,354,500 101,682,950 461,483,150 34,700 43,562,800 133,550 Total. 981,150 38,532,950 39,514,100 146,395,150 5,559,278,800 5,705,673,950 1,4^14,906,650 4,908,571,050 1,367,800 6,353,477,700 1,367,800 1,444,906,650 4,909,938,^50 6,354,845,500 ' Includes $14,850 in transit ®n June"30, 1921. SECRETARY OF THE EXHIBIT ISSUES AND 257 TREASITRY. 47. RETIREMENTS—VICTORY LIBERTY LOAN OF 1922- 1923. Fiscal year ended June 30, 1921. 41 p e r c e n t . 3£- p e r c e n t . T o t a l Vic• tory loan. Detail, Registered. Coupon. Registered, Coupon, Gross securities o u t s t a n d i n g a n d is$586,868,850 1 $2,841,100,850 $84,237,150 $734,158,500 $4,246,365,350 s u a b l e J u n e 30,1920 5,900 545,000 35,050 Less securities issuable 585,950 N e t securities J u n e 30 1920 outstanding 586,862,950 P l u s securities issued d u r i n g fiscal J^ear: . Upon— Original s u b s c r i p t i o n 1,129,750 Conversion. . ExchangeRegistered for c o u p o n Coupon for r e g i s t e r e d . . 111,602,100 Of d e n o m i n a t i o n s M u t i l a t e d for perfect. . 9,050 Transfer of o w n e r s h i p 22,133,600 54,400 Claim s e t t l e m e n t s . . . Total 2,840,555,850 84,237,150 734,123,450 4,245,779,400 18,000 194,046,250 948,000 71,333,250 18 000 267 457*250 62,689,400 10,798,750 10,058,450 289,548,7.50 15,700 62,444,500 73 488 150 121 660 550 351'993'250 30 350 27,806; 500 52,950 3,550 5,600 5,672,900 -5,000 134,928,900 546,321,650 16,679,950 144,576,500" 842,507,000 554,000 71,692,200 9,749,200 184,962,650 266,958,050 Less securities retired d u r i n g fiscal year: A c c o u n t of reissue— ExchangeRegistered for c o u p o n . . Coupon for r e g i s t e r e d . . Of d e n o m i n a t i o n s . . . M u t i l a t e d for p e r f e c t . . . Transfer of o w n e r s h i p . . . . Claim s e t t l e m e n t s Total A c c o u n t of r e d e m p t i o n — Sinkine: fund B o n d - p u r c h a s e fund R e c e i v e d for F e d e r a l e s t a t e 62,689,400 9,050 22,133,600 54,400 3,5.50 5,600 .5,672,900 -5,000 73,488,150 121,660,550 351,993,250 30,350 27 806 500 52,950 10,058,450 62,444,500 472,862,300 26,221,450 257,465,600 841,989 800 5,3757300 212,100,250 59,148,000 49,150,000 5,852,000 261,250,250 70,375,300 42,150 5,417,450 T o t a l r e t i r e m e n t s (reissue and redemption) 111,602,100 289,548,750 15,700 85,440,450 Forfeitures Total 10,798,750 3 928,300 1,450 a 970 450 1,450 ' 55,002,000 272,178,000 332,597,450 90,857,900 745,040,300 26,221,450 312,467,600 1,174,587,250 Securities o u t s t a n d i n g J u n e 30,1921. 630,933,950 P l u s securities issuable J u n e 30, 1921 2,641,837,200 74,695,650 566,232,350 3,913,699,150 Securities o u t s t a n d i n g a n d i s s u a b l e . 630,933,950' 2,641,908,400 74,-695,650 566,232,350 3,913,770,350 71,200 71 200 1 Includes $15,550 in excess of amount shown in annual report for fiscal year ending Jime 30,1920, which amount could not then be classified, 2 Includes $10,000 in transit on June 30, 1921. 70073—FI 1921- -17 EXHIBIT to cn 48. 00 LIBERTY BONDS AND VICTORY NOTES. Recapitulation of denominational exchanges showing net increases and decreases from Apr. 6, 1917, to June 30, 1921. Detail. First 3i's. First 4's. First First 4i's. second 4i's. Second 4's. Original deliveries (including those on conversion): SlOO, 034, 350 $98,935,000 $59,318,650 $50 $100 122, 321,200 124,104, 700 97,270,100 $500 97, 747, 000 84, 207,000 76,871,000 $1,000 "949, 284, 000 164,524,000 179,751,000 13, 045,000 19,040,000 $5,000 13,460,000 19,320,000 $10,000 : Total. 1,269,386,550 498,275,700 451, 570,750 Second 4J's, Third 4i's, Fourth 4i's, Victory 4|'s, Victory 3|'s. Total. $601,050 $2, 861,322, 850" $297,200 $383,289,600 $237,173,600 $701,956,600 $864, 615, 800 $415,101, 000 1, 604,100 3,450, 855, 800 399,300 •444, 724,000 348,416, 300 720,302,600 1, 025,791, 800 56.5,921, 700 3,157,000 2,124,952,000. 259, 500 329,212, 000 281, 883, 500 379, 896, 500 519,188, 000 352, 530, 500 1,222,000 1,591,870,000 1, 510,276, 000 1,384, 390, 000 2, 384,269,000 1, 308, 080, 000 346, 554,000 9, 820,220,000 257, 555, 000 54, 985,000 1,498, 210, 000 239, 585, 000 258,120, 000 206,125, 000 449,650,000 105,000 486, 330, 000 233,220, 000 3,216,310, 000 460, 590,000 550,170, 000 408,610, 000 1, 044,450,000 160,000 Pi fej hj O 2,443,000 3,449, 270,600 3,186,039, 400 3,801,280,700 6, 287,964,600 3, 385, 518, 200 640,121,150 22,971,870, 650 i^ no Surrendered for denominational exchange: $50 $100 $500 $1,000 $5,000 $10,000 Total. H 461,646, 550 406, 740,100 86, 569, 500 460,654, 000 151, 270,000 346,900, 000 22, 282,350 15, 805,600 2,408,000 4, 021,000 2, 585,000 2,600,000 12,194,000 16,561,400 7,323,000 15, 835, 000. 3,685,000 3,640,000 70,200 102,300 17, 500 18, 000 20,000 40,000 103,938,450 86, 233, 900 24,685,000 41,152,000 49,960, 000 69, 690,000 74,108, 350 79,477, 800 30,605, 000 190,771, 000 72, 315,000 133,060, 000 146,078,100 49, 701,950 59,238,400 268,000 375,659, 350 580,337,150 1,224, 842, 300 1,913,780,150 10, 5, 13, 116, 718,100 547, 500 233, 500 579, 000 3, 858,750 2,908,700 4, 672, 500 35, 067,000 1, 975,000 1, 220,000 1,090,600 1,910, 800 5, 501,000 33,186, 000 6, 380,000 11,170,000 800 700 71,500 175,000 27, 28, 28, 201, 37, 51, 13,632,350 16,770,300 27, 349, 500 295, 250,000 55,035,000 172, 300,000 146,078,100 49, 701,950 59, 238,400 268,000 375,659,350 43,058, 500 47,101,000 18,423,600 12, 896,900 11,103,400 14,650,600 69,400 101,600 75, 939,400 57, 488,100 53, 776,600 52, 648, 500 27,779,000 11,874,000 361,639,600 265, 945, 200 61, 078, 500 283, 3,59,000 88, 310, 000 164, 510, 000 205, 192, 49, 200, 79, 129, 788, 350 943, 700 524, 500 793,000 255, 000 350, 000 •352,650 1,295, 797,100 956,100 1,117, 414, 600 291,447, 500 1,457,'500 86, 844,000 1, 295, 321,000 18,695,000 . 466,095, 000 935,630, 000 85, 840,000 857,654, 550 194,145,250 5,401,705, 200 44, 35, 46, 485, 70, 175, 82,450 235,300 624,500 95, 758,000 15, 265,000 82,180,000 248,890,900 197,912, 300 249, 809,000 3,084, 578, 000 433,255,000 1,187,260,000 Total. Decrease on d e n o m i n a t i o n a l exchange: $50 $100 857,654, 550 194,145, 250 5,401,705,200 161,491, 500 157, 047,500 1,046,906,200 . 919,503,000 fej fej H-H t^ • > "^ o •fej Ul Issued on denominational exchange: ; $50 $100 $500 $1,000 $5,000 $10,000 W 20,000 999,050 745,800 296,500 723,000 055,000 840,000 79,672,950 67, 539, 00070,166,700 35, 730, 300 47,221, 000 . 76,623, 500 731, 877, 000 1, 089,472, 000 154,415,000 92, 745,000 443,430, 000 249, 730, 000 580, 337,150 1,224,842,300 1, 913, 780,150 60,476,000 62,707,600 294,100,600 230,214,900 381,973,600 336,573,400 296, 850 896, 200 215, 500 491, 000 385,000 370, 000 270, 200 721,400 $500 $1,000 . $5,000 $10,000 14,545,500 Total 104,705,000 20, 000 20,000 12,970,000 19,270,000 3,255,500 22, 721,000 17,280,000 26,950,000 13, 857, 500 2, 297,000 3; 880, 000 . 9,949, 500 16, 524, 000 3, 070,000 3,309,000. 1,201,000 9,000,000 211, 000 165, 705, 500 193,390,100 544, 350,000 748, 090,500 66,190,000 450,815,000 8,315, 000 85, .220, 000 193,390,100 544, 350,000 38,000 1, 822,000 615, 000 1, 380, 000 33,315, 500 27, 576, 000 Total 47,610,000 42, 743,000 50 265 000 51,280,000 332, 049,000 8,914,600 2,158,307,200 600 3,500 645, 342,000 6,215,000 96, 530,000 285, 899,000 130, 000 46,020,000 8,914,000 700 5,971,500 1,832,000,000 17,425,000 302,910,000 748,090, 500 332, 049, 000 8, 914,600 2,158,307,200 833,000 • Increase on denominational exchange: $50 $100 $500.. $1 000 $5,000 . $10,000 3,430,000 3,660,000 • 100 104, 705, 000 2,26.4,500 31,046,000 5,000 104, 705, 000 33,315, 500 17,351,000 2,695,000 7,530,000 27, 576,000 54,000 157, 000 3,649,500 160, 571, 000 65, 000 1, 420,000 211, 000 165, 705, 500 127,200,000 Ul fej o pi fej pi O. H W fej > Ul td X Cn 260 REPORT ON THE FINANCES. EXHIBIT CONVERSION TRANSACTIONS—NOV. 49. 15, 1917, TO J U N E 3 0 , 1921. LIBERTY BONDS AND VICTORY NOTES. First Liberty loan converted 4 per cent bonds of 1932-1947, Nov, 15, 1917-May 15, 1918: Surrendered for conversion— • First 3^- per cent interim certificates $473, 917, 250 First 3 | per cent coupon boiids , 89,103, 500 First ^ per cent registered bonds 5, 297, 700 Total 568,318, 450. Issued upon conversion— First converted 4 per cent coupon bonds First converted 4 per cent registered bonds \ Total 498, 275, 700 70,042, 750 568, 318, 450 First Liberty loan converted 4^ per cent bonds of 1932-1947, as of June 30,1921: Surrendered for conversion— First 3^ per cent coupon bonds First 3 | per cent registered bonds First converted 4 per cent coupon bonds First converted 4 per cent registered bonds. Total ' 542, ^87, 650 Issued upon conversion— First converted 4^ per cent coupon bonds First converted 4 | per cent registered bonds Total 451, 590, 400 .90, 797, 250 .' 542, 387, 650 First Liberty loan second converted 4} per cent bonds of 1932-1947, Oct, 24, 1918-Apr. 24, 1919: Surrendered for conversion— First 3^ per cent coupon bonds First 3 | per cent registered bonds Total :.. Issued upon conversion— xFirst second converted 4^ per cent coupon bonds First second converted 4^ per cent registered bonds Total 6,115, 750 1,454, 800 470, 928, 050 63, 889,050 - 2, 900, 650 591, 500 3, 492,150 2, 443, 000 1, 049,150 3, 492,150 Second Liberty loan converted 4} per cent bonds of 1927-1942, as of J u n e 30, 1921: Surrendered for conversion— Second 4 per cent temporary coupon bonds 3, 270, 415, 350 Second 4 per cent permanent coupon bonds 17, 596, 000 Second 4 per cent registered bonds ^^ 362, 924, 800' Total ' Issued upon conversion— Second 4J per cent temporary coupon bonds Second 4 | per cent permanent coupon bonds Second 4} per cent registered bonds. otai 3, 650, 936,150 2, 737, 424, 450 448, 711, 550 464, 800,150 3, 650, 936,150 SECRETARY OF THE TREASURY. .261 Victory Liberty loan 4 | per cent notes of 1922-1923, as of June 30, 1921: Surrendered for conversion— Victory 3f per cent coupon notes |281, 900, 850^ Victory 3f per cent registered notes 11, 210, 400 Total , 293, 111, 250 Issued upoii conversion— Victory 4 | per cent coupon notes Victory 4 | per cent registered notes : Total 293,111,250 Victory Liberty loan 3 | per cent notes of 1922-1923, as of June 30,1921: Surrendered for conversion— Victory 4 | per cent coupon notes Victory 4 | per cent registered notes Total : Issued upon conversion— Victory 3 | per cent coupon notes. . . Victofry 3 | per cent registered notes Total 290, 817, 200 " 2, 294, 050 403, 588, 600 2, 079,550 405, 668,150 402, 498, 350 3,169, 800 ..,* 405,668,150 EXHIBIT to 50. LIBERTY LOANS OUTSTANDING, BY DENOMINATIONS, J U N E 30, 1921. Number of pieces: Amount, $1,000 $500 $100 $50 Number of pieces. ^ Amount. Number of pieces. Amount. Number of pieces. $5,000 Amomit. Total : First 4's: Temporary coupon bonds Permanent coupon bonds Registered bon Ss Total First 4J's: Temporary coupon bonds Permanent coupon bonds .. Permanent coupon bonds issuable account conversion Registered bonds Total First Second 4i's: Temporary coupon bonds Permanent coupon bonds Registered bon3.s Total Total first loan Amount. • FIEST LIBERTY LOAN. First 3i's: Coupon bonds .. Coupon bonds deliverable in lieu of interim certificates outstanding .. Registered bonds Number of pieces. • Pi fej 946,242 $946,242,000 771,556 $38,577,800 487,964 $48,796,400 109,742 $54,871,000 2,185 109,250 1,223 35,520 122,300 • 3,552,000 69 7,766 34,500 8,883,000 106 .19,615 106,000 19,615,000 4,841 $24,205,000 773,741 38,687,050 524,707 52,470,700 117,577 58,788,500 965,963 965,963,000 4,841 24,205,000 54,512 8,781 5,238 2,725,600 439,050 261,900 19,360 5,739 27,762 1,936,000 573,900 2,776,200 899 570 . 4,380 449,500 285,000 2,190,000 723 600 3,201 723,000 600,000 3,201,000 3 4 133 15,000 20,000 665,000 68,531 3,426,550 52,861 5,286,100 5,849 2,924,500 4,524 4,524,000 140 700,000 21,399 811,703 1,069,950 40,585,150 13,437 739,125 1,343,700 73,912,500 1,435 125,494 717,500 62,747,000 1,094 159,002 1,094,000 159,002,000 10 5,305 50,000 26,525,000 171 35,935 8,550 1,796,750 101 113,978 10,100 11,397,800 1,000 17,794,500 38,921 38,921,000 3,196 15,980,000 869,208 43,460,400 866,641 86,664,100 2 35,589 162,520 81,260,000 199,017 199,017,000 8,511 42,555,000 732 2,816 575 36,600 140,800 28,750 410 2,351 1,183 41,000 235,100 118,300 48 528 309 24,000 - 264,000 154,500 42 1,274 351 42,000 1,274,000 351,000 36 30 180,000 150,000 1,667 1,667,000. 66 330,000 1,171,171 1,171,171,000 13,558 67,790,000 4,123 206,150 3,944 394,400 885 442,500 1,715,603 85,780,150 1,448,153 144,815,300 286,831 143,415,500 o n o H fej ofej Ul SECOND LIBERTY LOAN. Second 4's: Temporary coupon bonds Permanent coupon bonds Registered bonds Total Second 4i's: Temporary coupon bonds Permanent coupon bonds Permanent coupon bonds issuable account conversion Registered bonds i 211,774 41,639 50,233 10,588,700 2,081,950 2,511,650 73,583 28,154 82,145 7,358,300 2,815,400 8,214,500 3,^945 3,145 13,666 1,972,500 1,572,500 6,833,000 2,712 6,235 11,192 2,712,000 6,235,000 11,192,ooq 39 154 731 195,000 770,000 3,655,000 303,646 15,182,300 183,882 18,388,200 20,756 10,378,000 20,139 20,139,000 924 4,620,000 98,504 2,801,254 4,925,200 140,062,700 50,404 2,472,050 .5,040,400 247,205,000 4,761 456,245 2,380,500 228,122,500 5,909,000 5,909 1,061,932 1,061,932,000 141 50,354 705,000 251,770,000 686 140,651 34,300 7,032,550 393 333,159 39,300 33,315,900 32 108,283 16,000 54,141,500 7 143,899 7,000 143,899,000 13,936 69,680,000 Total 3,041,095 152,054,750. 2,856,006 285,600,600 569, .321 284,660,500 1,211,747 1,211,747,000 64,431 322,155,000 Total second loan 3,344,741 167,237,050 3,039,888 303,988,800 590,077 295,038,500 1,231,888 1,231,886,000 65,355 326,775,000 TfflRD LIBERTY' LOAN. uy fe-J c pi fe!' H ^ Tliird 4J's: Temporary coupon bonds Permanent coupon bonds Registered bonds Total third loan 685,000 206,590,000 61,230,000 11,567 578,799 " 167,297 5,783,500 289,399,500 83,648,500 7,668,000 7,668 1,097,505 1,097,505,000 169,978,000 169,978 469,195,300 757,663 378,831,500 1,275,151 1,275,151,000 "53,701 268,505,000 731,752 4,706,576 1,110,831 73,175,200 470,657,600 111,083,100 .55,097 771,120 250,348 27,548,500 385,560,000 125,174,000 55,877 55,877,000 1,735,085 1,735,085,000 294,307 294,307,000- 1,348 .95,157 24,219 6,740,000 475,785,000 121,095,000 339,960,300 6,549,159 654,915,900 1,076,565 538,282,500 2,085,269 2,085,269,000 120,724 • 603,620,000 1 . 162,919 4,785,068 239,253,400 8,145,950 3,877,128 582,100 387,712,800 58,210,000 601,956 177,352 300,978,000 88,676,000 1,126,803 1,126,803,000 221,722 221,722,000' 38,040 - 13,046 190,200,000 65,230,000 4,947,987 247,399,350 4,459,228 445,922,800 779,308 389,654,000 1,348,525 1,348,525,000 51,086 255,430,000 620,394 4,779,483 340,317 31,019,700 238,974,150 17,015,850 213,935 3,771,429 , 706,589 21,393,500 377,142,900 70,658,900' 1 5,740,194 287,009,700 4,691,953 1,402,465 4,905,590 491,151 70,123,250 245,279,500 24,557,550 1 6,799,206 137 41,318 . 12,246 Pi Kj o fej FOURTH L I B E R T Y LOAN. Fourth 4J's: Temporary coupon bonds Permanent coupon bonds Registered bonds Total fourth loan .• *. ... H W te! > Ul d VICTORY L I B E R T Y L O A N . Victory 4J's: Coupon notes Registered notes Total to as CO Liberty loans outstanding, by denominations, June 30, 1921—Continued. ' $50 Number of pieces. $100 Amount. Number of pieces. $500 Amount. to $1,000 $5,000 Number of pieces. Amoimt. . Number of pieces. 4,378 177 $2,189,000 88,500 273,359 1,983 $273,359,000 1,983,000 9,195 879 $45,975,000 4,395,000 4,555 2,277,500 275,342 275,342,000 10,074 50,370,000 1,623,867 1,623,867,000 61,160 305,800,000 O W H 8,390,000 1,197,815,000 O Amount. Number of pieces. Amount. VICTORY LIBERTY LOAN—Continued. Victory 3|'s: Coupon notes Registered notes Total .. ^ . Total Victory loan. Total of aU loans: Temporary coupon bonds Permanent coupon bonds and notes Total Registered bonds and notes Total of all loans 6,069 • 105 $303,450 5,250 7,659 339 $765,900 33,900 6,174 .308,700 7,998 799,800 4,954,161 247,708,050 4,467,226 446,722,600 2,409,780 18,913,959 120,489,000 945,697,950 1,102,881 110,288,100 16,098,175 1,609,817,500 77,752 38,876,000 2,651,977 1,325,988,500 74,025 74,025,000 6,408,037 6,408,037,000 1,678 239,563 21,323,739 1,066,186,950 1,227,124 61,356,200 17,201,056 1,720,105,600 299,360,600 2,993,606 2,729,729 1,364,864,500 765,167 382,583,500 6,482,062 6,482,062,000 905,169 905,169,000 241,241 1,206,205,000 73,267 366,285,000 22,550,863 1,127,543,150 20,194,662 2,019,466,200 3,494,896 1,747,448,000 7,387,231 7,387,231,000 314,498 . 783,863 391,931,500- 1,572,490,000 pi fej ^^ fej > Liberty loans outstanding, by denominations, June 30, 1921—Continued. $10,000 Number of pieces. $50,000 Amount. Number of pieces. Total. $100,000 Amount. Numbei of pieces. Amomit, Number of pieces. Amount. FIRST LIBERTY LOAN. First 3Vs: Coupon bonds...Coupon bonds deliverable in lieu of interim certificates outstanding Registered bonds Total First 4's: Temporary coupon bonds Permanent coupon bonds Permanent coupon- bonds issuable account temporarypermanent exchange (denominations unavailable) Registered bonds Total First 4i's: Temporary coupon bonds • Permanent coupon bonds Permanent coupon bonds issuable account conversion Permanent coupon bonds delivered on consignment account temporary-permanent exchange (denominations unavaUable) Registered bonds . 9,181 $91,810,000 1,165 1,165 9,181 91,810,000 6 60,000 86 860,000 4 92 920,000 4 •3,050 30,500,000 $58,250,000 58,250,000 1,199 $119,900,000 2,315,504 $1,088,487,200 3,583 79,287 372,050 321,215,000 2,398,374 1,410,074,2.50 75,497 15,700 5,849,100 1,977,950 200,000 40,804 1,650 10,154,100 200,000 132,001 17,982,800 ' 37,375 1,843,679 274 4,275,150 393,271,650 19,650 1,199 119,900,000 i, 9i3 19,130,000 151 7,550,666 109 10,900,000 229,792 . . . . 4,963 49,630,000 151 7,550,000 109 10,900,000 2, 111, 120 520,708,100 First second 4i's: Temporary coupon bonds -. Permanent coupon bonds Permanent coupon bonds issuable account temporary-per- 22 220,000 1,232 7,027 143,600 2,313,900 2,471 2,100 1,032,550 . . - Tnanp.nt p.-XT>.hq.ngft (dennminat.ionsimava11a.blP.) Registered bonds Total Total first loan fej o pi fej H H H Pi fej > Ul -328,400 123,470,050 Total Ul 23 230,000 45 450,000 14,281 142,810,000 1,320 66,000,000 1,308 i 130.800 ono 10,730 3,492,150 4,652,225 1,952,257,300 d w to Liberty loans outstanding, hy denominations, June 30, 1921—Continued, $10,000 Number of pieces. Number of pieces. Total. • $100,000 $50,000 Amount. . to Amount. " Number of pieces. Amount. Nmnber of pieces. Amount. SECOND LIBERTY LOAN, Second 4's: Temporary coupon bonds Permanent coupon bonds Permanent coupon bonds issuable account temporarypermanent exchange (denominations unavailable) Registered bonds 1 156 $10,000 1,560,000 459 . 4,590,000 52 $2,600,000 4 $400,000 616 6,160,000 52- 2,600,000 4 400,000 44 62,071 440,000 620,710,000 12,513 125,130,000 1,016 50, 800,000 Total 74,628 746,280,000 1,016 50,800,000 Total second loan 75,244 752,440,000 1,068 53,400,000 • 67 53,294 670,000 532,940,000 • i6,997 109,970,000 971 48,550,000 2,408 • 64,358 643,580,000 971 48,550,000 2,408 557 135,717 . 5,570,000 1,357,170,000 Total Second 4i's: Temporary coupon bonds Permanent coupon bonds Permanent coupon bonds issuable account conversion Permanent coupon bonds delivered on consignment account temporary-permanent exchange (denominations unavailable) Registered bonds . 292,054 79,483 $22,836,500 15,034,850 158,482 2,650 39,996,150 Pi fej 530,019 1 77,870,150 O 159,763 6,903,906 1,118 19,400,100 2,549,802,200 96,600. i,855 185,500,000 755,312 —147,950 669,498,950 1,855 185,500,000 7,820,099 3,238,649,900 1,859 185,900,000 8,350,118 3,316,520,050 •853,768 10,321,828 67,219,700 2,742,551,550 240,800,000 1,410,803 -67,250 801,851,250 Total third loan 240,800,000 12,586,399 3,611,555,250 2,247,096 12,349,245 239,033,950 4,669,537,100 F O U R T H LIBERTY LOAN, Fourth 4i's: Temporary coupon bonds.. Permanent coupon bonds o' fej o THIRD LIBERTY LOAN, Third 4i's: Temporary coupon bonds Permanent coupon bonds Permanent coupon bonds delivered on consignjnent account temporary-permanent exchange (denominations unavailable) Registered bonds n • •fej Ul P e r m a n e n t c o u p o n b o n d s issuable a c c o u n t t e m p o r a r y p e r m a n e n t exchange (denominations unavailable) Registered b o n d s i T o t a l fourth l o a n 22,209 222,090,000 1,612 80,600,000 4,660 466,000,000 2,199,337 1,367,800 1,444,906,650 158,483 1,584,830,000 1,612 80,600,000 4,660 466,000,000 16,795,678 6,354,845,500 39,689 396,890,000 10,468,684 2,641,837,200 7,450 74, 500,000 685 34,250,000 802 80,200,000 1,166,076 71,200 630,933,950 47,139 471,390,000 685 34,250,000 802 80,200,000 11,634,760 3,272,842,350 24,364 1,639 243,640,000 16,390,000 130 6,500,000 453 45,300,000 325,024 5,705 566,232,350 74,695,650 26,003 260,030,000 130 6,500,000 453 45,300,000 330,729 640,928,000 73,142 731,420,000 815 40,750,000 1,255 125,500,000 11,965,489 3,913,770,350 3,666,785 44,630,080 358,758,100 14,671,045,950 VICTORY L I B E R T Y LOAN. Victory 4f's: C o u p o n notes .* C o u p o n notes issuable a c c o u n t conversion ( d e n o m i n a t i o n s una.vailable) . . • Registered n o t e s Total • ••.. . . Victory 3 | ' s : C o u p o n notes Registered n o t e s Total. Total Victory l o a n . . . . .. T o t a l of all l o a n s : Temporary coupon bonds Permanan'^t coupon b o n d s a n d notes Total Registered b o n d s a n d notes.." . . T o t a l of all loaris Issuable items: Coupon bonds a n d notes P e r m a n e n t c o u p o n b o n d s on c o n s i g n m e n t 669 318,369 • 6,690,000 3,183,690,000 319,038 66,470 3,190,380,000 664,700,000 5,786 289,300,000 11,490 1,149,000,000 48,296,865 6,048,069 15,029,804,050 4,117,754,300 385,508 3,855,080,000 5,786 289,300,000 11,490 1,149,000,000 54,344,934 19,147,558,350 1,933,700 -543,600 .' o O • fej H M fej H pi fej > 119,148,948,450 Total outstanding. Ul fej 1 Includes $47,900 in transit on June 30,1921. to EXHIBIT to 51. 00' L I B E R T Y BONDS, VICTORY NOTES, T R E A S U R Y NOTES AND C E R T I F I C A T E S OF I N D E B T E D N E S S , SECURITIES ACCOUNT, SHOWING BY D E N O M I N A T I O N S T H E AMOUNTS D E L I V E R E D , R E T I R E D , AND OUTSTANDING F O R T H E FISCAL Y E A R E N D E D J U N E 30, 1921. $50. O u t s t a n d i n g J u n e 30, 1920: Tnterim certificates . L i b e r t y issues i n c o u p o n form Jyiberty issue.s in rp.gistereri form Certificates of i n d e b t e d n e s s Total O n h a n d F e d e r a l reserve b a n k s ( c o n s i g n m e n t s t o c k ) , J u n e 30, 1920: I n t e r i m certificates. L i b e r t y issues i n c o u p o n form .. .... L i b e r t y issues i n registered form Certificates of i n d e b t e d n e s s Total O n h a n d F e d e r a l reserve b a n k s (retired securities), J u n e 30, 1920: I n t e r i m certificates T./iberty issues in coupon form. L i b e r t y issues in registered form Total Securities issued d u r i n g fiscal y e a r : L i b e r t y issues i n c o u p o n form. L i b e r t y issues i n registered form T r e a s u r y notes Certificates of i n d e b t e d n e s s Total T o t a l t o be a c c o u n t e d for ' $100. $1,000. $500. Number of-pieces. Amount. $193, 550 3,871 29, 260,675 " 1,463,03-3,750 59,618,100 1,192,362 Number • of pieces. 1,705 20, 565,925 2,868,410 Amount. $170,500 2,056, 592,500 286,841,000 Number of pieces. 138 2,902, 882 708,457 89, 932 Amount. $69,000 1, 451,441,000 354,228,500 44,966,000 Number of pieces. 107 7,250,996 777,375. 158,425 Amount. $107,000 7, 250,996,000 777, 375,000 158,425,000 30,456, 908 1,522,845,400 23,436,040 2, 343,604,000 3,701,409 1,850,704,500 8,186,903 8,186,903,000 3 3,758, 929 2,020 .150 187,946,450 101,000 • 11 2,497,624 2,137 1,100 249, 762,400 213,700 518,306 1, 834 17,630 ^ 259,153,000 917,000 8, 815,000 2 1,457,435 1,571 25,611 2,000 1,457,435,000 1,571,000 25,611,000 3, 760,952 188,047,600 2,499, 772 249,977, 200 537,770 268, 885,000 1,484,619 1, 484,619,000 116 1,030,641 272 5,800 51, 532,050 13,600 71 690, 553 478 7,100' 69,055, 300 47, 800 5 102,961 129 2,500 51,480, 500 64,500 6 166,748 154 6,000 • 166 748 000 154,000 1,031,029 51, 551,450 691,102 69,110, 200 103,095 51,547,500 166, 908 8,428,021 209,018 421,401,050 10,450,900 7,660,123" 514,609 45, 261 766,012,300 51,460,900 4,526,100 . 1,364,727 141,326 29,376 302, 528 682, 363, 500 70, 663,000 14,688,000 151,264,000 3,061,326 226,174 62,463 512, 884 Pi IS O • > 8,637,039 431,851,950 8, 219,993 43,885, 928 2,194, 296,400 34,846, 907 821,999,300. 3,484,690,700 _. 166, 908,000 3,061, 326,000 226,174,000 62,463,000 512,884,000 1,837, 957 918,978, 500 3, 862,847 3', 862,847,000 6,180, 231 3,090,115,500 13, 701, 277 13, 701, 277, 000 o Securities retired during fiscal j^^ear: Interim certificates Liberty issues in coupon form Liberty issues in registered form.. Treasury notes Certificates of indebtedness Total.. On hand Federal reserve banks (consignment stock), June 30, 1921: Interim certificates Liberty issues in coupon form : Liberty issues in registered form Treasury-notes Certiflcates of indebtedness 560 90,100 976,415,150 13, 252,884 389,461 8, 730, 650 310 56,000 1, 325,288,400 38, 946,100 31,000 19, 704, 718 985, 235, 900 13,643,215 1, 364,321, 500 2,109, 280 1, 626,224 1,935 150 81, 311, 200 96, 750 4 960, 285 2, "567 22, 791 400 96,028, 500 256, 700 2, 279,100 1,628,162 81, 408,100 985,647 98, 564,700 2,185 21, 323,739 1,227,124 1,223 109, 250 1,066,186, 950 17,201,056 61, 356, 200 2,993,606 22,160 122, 300 1,720,105,600 299,360,600 2, 216,000 Total 22, 553,048 1,127,652,400 20, 218,045 T o t a l a c c o u n t e d for. 43, 885,928 2,194, 296,400 34,846, 907 Total.. Outstanding June 30,1921: Interim certificates Liberty issues in coupon form Liberty issues in registered form.. Treasury notes Certificates of indebtedness 74 1,810, 666 84, 565 285 213,690 1,802 19,528,303 174,613 53 37,000 905, 333,000 4, 510,972 42, 282, 500 97, 933 142, 500 286 337, 293 106,845,000 1,054,640, 000 4,946, 537 348,481 2,014 8, 382 53,164 174, 240, 500 1,007, 000 4,191,000 26,582,000 1 943,471 2,172 13, 989 79, 747 412,041 206,020, 500 53,000 4,510,972,000 97,933,000 286,000 337,293,000 4,946, 537,000 1,000 943,471,000 2,172,000 13,989,000 79,747,000 Ul 1,039, 380 1,039, 380,000 a 2,729,729 765,167 20,709 143,236 34, 500 61 1, 364,864, 500 6,482,062 382, 583, 500 905,169 10, 354, 500 48,188 71,618,000 279, 880 61,000 6,482,062,000 905,169,000 48,188,000 279,880,000 2,021,804, 500 3,658, 910 1,829,455,000 7,715,360 7,715,360,000 3,484,690, 700 6,180, 231 3,090,115,500 13,701, 277 13,701,277,000 pi fej H > O w fej fej to CO to -a o Liberty bonds. Victory notes. Treasury notes and certificates of indebtedness, etc.—Continued. $5,000, O u t s t a n d i n g J u n e 30,1920: I n t e r i m cp.rtificates L i b e r t y issues i n c o u p o n form L i b e r t y issues i n registered form Certificates of i n d e b t e d n e s s Total.... O n h a n d F e d e r a l reserve b a n k s (cons i g n m e n t s t o c k ) , J u n e 30, 1920: I n t e r i m certificates L i b e r t y issues i n c o u p o n form L i b e r t y issues i n registered form Certificates of i n d e b t e d n e s s Total O n h a n d F e d e r a l reserve b a n k s (retired securities), J u n e 30,1920: I n t e r i m certificates L i b e r t y issues i n c o u p o n form L i b e r t y issues in registered form Total Securities issued d u r i n g fiscal year: L i b e r t y issues i n c o u p o n form L i b e r t y issues i n registered form T r e a s u r y notes Certificates of i n d e b t e d n e s s . . $10,000. Number of pieces. 8 214, 246 65, 720 64, 076 Amount. $40,000 1,071, 230,000 328, 600,000 320, 380,000 Number of pieces. 2 254,231 57,300 68,418 Amount. $20,000 2, 542, 310,000 • 573,000,000 684,180,000 344, 050 1, 720, 250,000 379, 951 3, 799, 510,000 • Total, $100,000, $50,000. Number of pieces. 5,117 $255,850,000 8,793 12,825 $879,300,000 1,'282, 500, 000 Number of pieces. 5,831 60,448, 955 5,683, 534 393, 993 5,117 255, 850, 000 21,618 2,161,800, 000 66, 532, 313 22,124, 841,900 333 1,903. 33,300, 000 190, 300.000 16 8, 343, 897 10, 919 73,851 3,250 2,947,771,850 74,462, 700 425, 726,000 2, 236 223, 600,000 8,428,683 . 3,447,963,800 Number of pieces. Amount. Amount. Amount. $600,050 15,835,603,250 3, 514,812,600 2,773,826,000 ^ 64, 511 1,368 17, 214 322, 555,000 6, 840,000 86, 070,000 47,092 1,282 11,493 470, 920,000 12, 820,000 114, 930,000 • 374 18, 700,000 83, 093 . 415,465,000 • 59,887 598,670,000 374 •• 18,700,000 . 100,000 51,620,000 40,000 50,000 30, 365,000 65,000 10 5,162 4 1 6,073 13 1 50, 000 1 100,000 209 2,002,138 1,052 171,400 420, 800, 850 534, 90^ 6,086 30, 430,000 5,176 51, 760,000 2 100,000 1 100,000 2,003, 399 421, 507,150 172,704 18, 339 13, 555 . 134, 318 863, 520,000 91,695,000 67, 775,000 671, 590,000 241, 205 20,311 1.1,076 121,277 2,412, 050,000 203,110,000 110,760,000 1, 212, 770,000 1,793 89, 650,000 4,267 1,325 16, 924 426, 766,666 132, 500, 000 1,692,400,000 20,928,106 1,135,837 163,056 1,088, 736 ^ 8,206,672,850 1,169,903,800 392,712,100 9,475,600,450 Total 338, 916 1, 694, 580,000 393,869 3, 938, 690,000 1,793 89,650,000 22, 516 2, 251, 600, 000 23, 315,735 19,244, 889, 200 T o t a l t o b e accounted for 772,145 3,860,725,000 • 8.38,863 8, 388,630,000 7,286 364,300,000 46, 371 4,637,100,000 100, 280,130 45,239,202,050 Securities retired d u r i n g fiscal y e a r : ' I n t e r i m certificates...: L i b e r t y issues i n coupon form L i b e r t y issues i n registered form T r e a s u r y notes Certificates of i n d e b t e d n e s s Total ^. : 1 155, 278 11, 024 189 124, 691 5,000 776, 390,000 55,120,000 945,000 623,455,000 11 186,437 11, 283 69 118,096 110,000 1, 864, 370, 000 112, 830,000 690,000 1,180,960,000 1 50,000 1,077 53, 850,000 1,575 3 20,150 157, 500,000 300,000 2,015,000, 000 2,502 39,444, 540 771,531 1,142 814, 582 401,100 10,358,768, 550 567,192,250 .2, 394, 500 9, 532, 891,000 291,183 1,455, 915,000 315,896 3,158, 960,000 1,078 53,900,000 21, 728 2,172,800,000 41, 034, 297 20,461,647,400 pi fej O o fej Q fej Ul O n h a n d F e d e r a l reserve b a n k s (cons i g n m e n t s t o c k ) , J u n e 30, 1921: I n t e r i m certificates L i b e r t v issues in c o u p o n form . L i b e r t y issues i n registered f o r m . . . . . . . T r e a s u r y notes Certificates of i n d e b t e d n e s s 422 21,100, 000 329 141 1,529 32, 900, 000 14,100, 000 152, 900,000 8 3,981,691 11, 742 53,032 169,690 1,550 2,022,276, 200 74,767,450 ^ 91,394,100 509,749,000 618, 510,000 422 21,100, 000 1,999 199, 900, 000 4, 216,163 2, 698,188, 300 1 319,038 66,470 7,369 68, 238 10,000 3,190, 380,000 664, 700,000 73,690,000 682, 380, 000 5, 786 289, 300,000 ii, 496 1,181 9,973 1,149,000,000 118,100,000 997, 300,000 3,546 48, 296,865 6,048,069 108,882 572,308 372,050 15,029, 804,050 4,117, 7.54, 300 298, 923, 500' 2,632, 512, 450 394, 301 1.971..50.5. 000 i 461. 116 4, 611,160, poo 5,786 .289, 300, 000 22,644 2, 264,400,000 55,029,670 22,079, 366, 350 772,145 3, 860, 725,000 | 838, 863 8, 388, 630,000 7,286 364. .300.000 46, 371 4, 637,100,000 100, 280,130 45,239, 202,050 61,015 1,159 4,091 20,396 305,075, 000 5,795,000 '20,455,000 101, 980, 000 42, 215 1,144 3,638 14,854 422,150,000 11,440,000 36, 380,000 148, 540,000 86,661 433, 305, 000 61, 851 • 7 241, 241 73, 257 9,275 70,,521 35, 000 1, 206, 205,000 366, 285,000 46, 375,000 352,605,000 T o t a l '. T o t a l a c c o u n t e d for Total O u t s t a n d i n g J u n e 30,1921: I n t e r i m certificatesL i b e r t y issues i n coupon form L i b e r t y i s s u e s l n registered form T r e a s u r y notes Certificates of i n d e b t e d n e s s . . . A m o u n t o u t s t a n d i n g as a b o v e P l u s i t e m s issuable: L i b e r t y issues i n c o u p o n form (on exchange) Treasury notes Certificates of i n d e b t e d n e s s (full-paid subscription).. , 22,079, 366, 350 1 1,561,650 12,268,100 76, 062,000 Total Less p e r m a n e n t b o n d s on c o n s i g n m e n t . . . , 22,169, 258,100 543, 600 T o t a l o u t s t a n d i n g a n d issuable 1 22,168, 714, 500 1 Includes $9,244,000 matured certificates of indebtedness. Ul fej o w fej H O fej H W, fej H W. fei > Ul d w X to EXHIBIT 52. LIBERTYBONDS, VICTORYNOTES,TREASURY NOTES AND CERTIFICATES OF INDEBTEDNESS—DELIVERIES, RETIREMENTS, AND OUTSTANDING. to to Fiscal year ended June SO, 1921. C o n d i t i o n of a c c o u n t — J u n e 30^ 1920. L o a n or series; O u t s t a n d i n g J u n e 30, 1920, N u m b e r of pieces. First Liberty loan: F u l l - p a i d i n t e r i m certificates 3i-% c o u p o n b o n d s 3 | % registered b o n d s Converted 4% coupon bonds C o n v e r t e d 4 % registered b o n d s Converted 4^% coupon bonds C o n v e r t e d 4 | % registered b o n d s Second c o n v e r t e d 4 ^ % c o u p o n b o n d s Second c o n v e r t e d 4 ^ % registered b o n d s . . Second L i b e r t y l o a n : 4% coupon bonds 4 % registered b o n d s ^ Converted 4^% coupon bonds i :. C o n v e r t e d 4 | % registered b o n d s i. Third Liberty loan: 4 i % coupon bonds 4 | % registered b o n d s F o u r t h Liberty loan: 4 i % coupon bonds 4 i % registered b o n d s Victory L i b e r t y l o a n : 4f% c o u p o n n o t e s 4 | % registered notes 3 | % coupon notes 3 | % registered notes Total.. On hand—Federal reserve b a n k s retired securities (canceled). N u m b e r of pieces, • 15,831 2,515,961 81,554 519,631 62,424 1,703,884 193,019 9,8672,521 $600,050 1,094,886,800 314,585,200 49,086,300 16,566,050 345,418,800 101,890,900 2,442,800 1,049,350 1,705,708 232,340 6,816,205 625,457 209 Amount, On hand—Federal banks consignment ties. N u m b e r of pieces. $171,400 2 16 31,212 reserve securi- Amount, 8 S3,250 10,456,400 19,969 3,101,700 272,950 55,050,400 'ii2,*688" * 24," 756,'566' 992,726 1,634 1,420 395 265,745,200 5,200,600 •150,000 1,351,700 173,803,350 65,901,350 2,364,268,500 528,343,100 497,561 1,020 73,293,850 315,500 484,241 99,194,550 2,051,243 1,319 866,059,050 7,699,600 13,255,559 1,320,648 2,922,750,500 729,288,950 1,326,772 3,333,187 3,063 1,045,105,550 10,448,000 20,901,538 2,024,678 5,308; 266,900 1,086,087,600 208,185 2,383 52,855,950 14,572,000 12,554,310 1,133,996 466,292 6,897 2,840,555,850 586,862,950 734,123,450 84,237,150 11,103 17,087,050 34,045 32 45,131,650 219,400 779,806 1,683 188,927 , 442 334,147,000 24,477,300 219,007,750 10,713,500 66,138,320 19,351,015,900 2,003,399 421,507,150 8,354,832 3i,.022,237,800 257,436,100 Pi fej O > fej a fejUl Certificates of i n d e b t e d n e s s : L o a n issues ( m a t u r e d J u n e 30,1920) T a x issues ( m a t u r e d J u n e 30,1920) E-1920... F-1920 G-1920 H-1920 A-1921 B-1921....... C-1921 D-1921 E-1921 F-1921 G-1921 H-1921 A-1922 T a x issues ( u n m a t u r e d J u n e 30,1920): T-10 TD-1920 TM-1921 TJ-1921 , TM-2-1921 TM-3-1921 TS-1921 TM-4-1921 TJ-2-1921 TD-1921 TS-2-1921 TM-1922 TJ-1922 Pittman act... O n e - d a y specials TotaL.. 178 3,228 30,228 16,535 33,959 28,023 29,922 224,000 4,676,500 153,650,000 79,015,500 169,033,500" 102,865,000 176,604,000 8,904 2,572 4,101 2,685 3,455 32,119,500 27, 742, 000 25 466,500 23,352,500 12 853 500 8,890 4,266 14,007 24,971 114,048,000 44 818 000 102,806,000 42,520,000 .. Ul 74,660 104,179 37,492 35,272 • ; 657,469,000 703,026,000 201,370,500 242,517,000 • , o fej i . . M fej 315 2 '. : '. 393,993 259,375,00024,000,000 H w 2,773,826,000 73,851 425,726,000 fej > Ul Treasury Notes: A-1924 Aggregate t o t a l o pi 66,532,313 1 Adjustment in outstanding made in fiscalyear as of June 30,1920, 22,124,841,900 2,003,399 421,507,150 8,428,683 3,447,963,800 Kj 2 Unadjusted,items. to CO to -a Liberty bonds. Victory notes. Treasury notes and certificates of indebtedness—deliveries, retirements, and owistoTicZm^—Continued. T r a n s a c t i o n s d u r i n g fiscal y e a r . L o a n or series. Delivered.! N u m b e r of pieces. F i r s t L i b e r t y loan; F u l l - p a i d interim, certificates 2 3^% coupon bonds 3 ^ % registered b o n d s Converted 4 % c o u p o n b o n d s C o n v e r t e d 4 % registered b o n d s C o n v e r t e d 4^% c o u p o n b o n d s .•...C o n v e r t e d 4 i % registered b o n d s Second c o n v e r t e d 4 i % c o u p o n b o n d s — Second c o n v e r t e d 4 i % registered b o n d s . . Second L i b e r t y l o a n : 4% coupon b o n d s . 4 % registered b o n d s 2 C o n v e r t e d 4^% c o u p o n b o n d s 2 C o n v e r t e d 4 i % registered b o n d s 2 T h i r d L i b e r t y loan: 4Wo c o u p o n b o n d s . 4 \ % registered b o n d s ^ F o u r t h L i b e r t y loan: 4J% coupon bonds 4 \ % registered b o n d s Victory l i b e r t y loan: 4f% c o u p o n nores 4 J % registered n o t e s . 3f ^ coupon n o t e s •. . 3 | % registered n o t e s : Total.. Certificates of i n d e b t e d n e s s : L o a n issues ( m a t u r e d J u n e 30, 1920). T a x issues ( m a t u r e d J u n e 30, 1920).. L o a n issues ( u n m a t u r e d J u n e 30, 1920): E-1920 F-1920.. G-1920 :...-....: H-1920 ;. Amount, Condition of a c c o u n t — J u n e 30, 1921. O n h a n d — F e d e r a l reserve b a n k s c o n s i g n m e n t securities. Retired, N u m b e r of pieces. N u m b e r of pieces. Amount, Amount. $372,050 1,088,487,200 321,215,000 7,827,050 10,154,100 397,546,800 123,470.050 2,457,500 1,032,550 O W H 258,203,550 6,177,600 371,537 158,482 7,063,669 755,312 37,871,350 39,996,150 2,569,202,300 669,498,950 fej 1,404,820 1,959 685,193,900 16; 851,450 11,175,596 1,410,803 2,809,771,250 801,851,250 5,412,539,000 161,869,100 920,485 2,203 549, 210,350 11,573,050 14,596,341 2,199,337 4,9.08,571,050 1,444,906,650 127,976 287,057 2,258 693,642,250 93,698,950 404, 561,250 27,567,900 255,000 2,719 101,067 470 114,435,150 23,021,250 107,418,600 9,686,450 10,468,684 1,166,076 325,024 5,705 2,641,837,200 630,933,950 566,232,350 74,695,650 40,218,573 10, 926,361,900 3,993,441 2,097,045,200 5.1,34.8,480 19,147,930,400 156 3,092 194,000 4,561,000 22 136 30,000 115,500 42,173 21,655 40,507 31,739 195,606,500 112,896,500 202,805,500 131,213,500 4 1 15 14 3 $1,550 6,780,900 156,885 36,313,700 392,436 2,531 3,163 392 199,544,400 6,106,150 599,700 1,351,500 $61,009,950 79,773,500 4,786,050 156,750 291,882,700 32', 591,300 2,956,100 39,050 2,502 276,729 11,166 570,445 21,899 1,464,739 17,781 10,497 227 $401,100 71,085,050 73,143,700 67,883,700 6,568,700 330,706,000 10,106,600 2,491,700 56,050 18.881 1,134 3,462,257 199,830 9,016,600 332,150 1,530,021,800 214,858,850 2,080,980 76,012 4,793,005 69,826 252,861,050 26,552,850 1,932,943,500 75,225,000 253,874 64,575,950 472,431 1,468 2,266,301 248,674 459,728,050 171,309,150 7,601,403 159,623 1,190,055,050 92,403,400 13,959,363 459,242 5,509,197,550 517,689,200 19,552,260 284,763 185,290 161,092 23,884 1,062 258,124,700 136,313,900 79,949,350 16,779^ 950 22,063,943 9., 376,576,650 9,841,000 6,139,500 8,331,500 5,006,000 N u m b e r of pieces. 3,546 2,315,504 79,287 91,197 40,804 1,881,054 229,792 8,259 2,471 21,530 66,590 8,899 5,977 279 928,931 55,451 10,632 174 3,045 2,549 2,462 1,045 Outstanding, 4,000 500 26,000, 10,000 fei O > O fej Ul A-1921.. B-1921 C-1921 D-1921.. s E-1921 F-1921 a-1921. H-1921 A-1922 T a x issues ( u n m a t m ' e d J u n e 30, 1920): T-10 TD-1920 : • TM-1921.. - TJ-1921 TM-2-1921 • TM-3-1921 TS-1921 TM^-1921 TJ-2-1921...". TD-1921 TS-2-1921 TM-192.2 TJ-1922 P i t t m a n Act .' Special ( W a r F i n a n c e C o r p o r a t i o n ) S h o r t t e r m specials Total Treasury notes: A-1924 5,901 36,203 67,575 69,944 34,c679 65,450 54,286 65^ 580 81,374 20,884,500 166,269,000 207,104, 500 275,812,000 141,639,500 238,703, 500 174,021,500 232,926,000 305,200,000 568 2,134 3,171 17,273 29.507 24; 512 86,715 47,307 48,127 101, 561 58,845 89,544 88, 514 386 1 418 1,350,000 5,-751,500 6,114,000 25,035,500116,403,000 137,846,500 386,233,000 155,534,000 242.276,000 451,137,500 • 230.082,500 328; 641,500 362,624,500 187,338,000 32.854,450 5,014,500,000 84,093 110,480 54,566 71,436 29,363 24,495 3,267 47,117 39,132 3,171 3,265 2,751 588 242 772,833,500 753,405,000 310,092,500 268,647,000 116,254,000 137,836,500 9,435,000 155,340,500 205,337,000 23,906,000 4,630,500 8,455,000 3,436,000 230,838,000 420 5,038, 500,000 1,088,736 9,475,600,450 814,582 9,532,891,000 163,056 392,712,100 1,.142 23,315,735 19, 244,889, 200 41,034.. 297 39,328 36,-176 4,815 69,084 • 34, 618 10,102 2,-903 1,732 2,116 210,316,500 166,235,000 15,547,500 274,669,000 141,563, .500 13,607,000 12,036,000 7,273,000 5,420,000 5,818 38,621,000 10,913 15,723 lcS,492 24,453 • 37,688,000 39,035,000 40,390,500 46,531,000 2,329 36,025,500 9,456 37,354,500 7.723 11,259 20,097 16,187 27; 240 35,334,000 41, 837, 500 38,269, 500 35,225,500 83,437,000 25,500 34,000 152,936,000 1,143,000 76,000 187,408,500 122,950,500 185,262,500 253,249,000 25 99 104 3,751 144 17 73,992 190 1,2'/2 - 87,131 35,483 70,606 60,686 459 1 33,500 190, 500 198,000 5,400,000 149,000 10,000 .339.443,500 ' 193,500 1,605,000 .385,394,000 187,182,500 284,961,000 275,751,500 215,875,000 32,854,450 169,690 . 509,749,000 572,308 4 2,632,512,450 2,394,500 53,032 91,394,100 108,882 298,923,500 20,461,647,400 4.. 216,163 2,698,188,300 55,029.670 22,079,366,350 Ul O pi fej H4 O fej. H W fej .- Aggregate total Issuable items (denominations'unavailable): L i b e r t v loans Less i t e m s issued in excess on t e m p o r a r y account H pi fej > Ul & 1,561,650 d w exchange 543,600 5 1,018,050 N e t issuable on L i b e r t v loans Certificates of i n d e b t e d n e s s Treasury notes • .. ... 76,062,000 12,268,100 89,348,150 22.168,714,500 Total 10 2756,942 860 61 44,435 35,660 45,356 54,805 1 1 Includes shipments to Federal reserve banks for stock. 2 Adjustment in outstanding made in fiscal year as of June 30, 1920. 8 Unadjusted items. < Includes $9,244,000 on which interest has ceased. 5 Does not include first 3J per cent bonds issuable on exchange of full-paid interim certificates. ' to 276 REPORT ON T H E MNANCES. EXHIBIT 53. [Department Circular No. 225. (Loans and Currency.) Superseding Department Circulars No. 132 of January 30, 1919, and No. 151 of June 24,1919,] RECEIPT OF LIBERTY BONDS AND VICTORY NOTES FOR ESTATE OR INHERITANCE TAXES TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, Washington, January 31, 1921. 1. The followmg regulations are prescribed pursuant to section 14 of the Second Liberty Bond Act, approved September 24, 1917, as amended by Third Liberty Bond Act, approved April 4, 1918, which section is as follows: SEC. 14, That any bonds of the United States bearing interest at a.higher rate than four per centum per annum (whether issued under section one of this Act or upon conversion of bonds issued under this Act or under said Act approved April twenty-fourth, nineteen hundred and seventeen), which have been owned by any person continuously for at least six months prior to the date of his death, and which upon such date constitute part of his estate, shall, under rules and regulations prescribed by the Secretary of the Treasury, be receivable by -the United States al parand accrued interest in payment of any estate or inheritance taxes imposed by the United States, under or by virtue of any present or future law upon such estate or the inheritance thereof. Pursuant to section 18(d) of the Second Liberty Bond Act, approved September 24, 1917, as amended by the Victory Liberty Loan Act, approved March 3, 1919, the word ^^bonds'^ where it appears in the above section shall be deemed to include notes issued under said section 18. This circular supersedes Treasury Department Circulars No. 132, dated January 30, 1919, and No. 151, dated June 24, 1919. 2. The bonds and notes coming within the provisions of said section at present issued and outstanding are— Ofiicial title. (a) (b) (c) (d) (e) (/) First Liberty Loan Converted 4i per cent bonds of 1932-47. First Liberty Loan Second Converted 4^ per cent bonds of 1932-47. Second Liberty Loan Converted 4^^ per cent bonds of 1927-42 Third Liberty Loan 4^ per cent bonds of 1928 Fourth Liberty Loan 4 | per cent bonds of 1933-38 Victory Liberty Loan 4 | per cent convertible gold notes of 1922-23, Date of issues. Short title.i May 9,1918 Oct. 24,1918 May 9,1918 May 9,1918 Oct. 24,1918 May 20,1919 First 4J's. First Second 4J's. Second 4i's. Third 4i's. Fourth 4i's. Victory 4|'s. 1 Use short titles. The words '^ bonds or notes ^^ where they appear in this circular shall be deemed to refer, respectively, to the six issues of Liberty bonds and Victory notes above described. The First Liberty Loan 3^ per cent bonds of 1932-1947, the First Liberty Loan Converted 4 per cent bonds of 1932-1947, the Second Liberty Loan 4 per cent bonds of 1927-1942, and the 3f per cent Victory Liberty Loari notes of 1922-23 are not acjceptable in payment of Federal estate or inheritance taxes and are not ^'bonds or notes'' within the meaning of these regulations. (GENERAL PROVISIONS. 3. Bonds or notes of the issues above specified are receivable for such taxes only in case such bonds or notes have been owned by the decedent continuously for at least six months prior to the date of SECRETARY OF THE TREASURY. 277 his death and upon such date constitute part of his estate. The reckoning of the required period of ownership will begin on the date when the decedent acquired such bonds or notes by original subscription, by purchase, by conversion of bonds or notes of other issues, or otherwise. For the purpose of reckoning the required period of ownership a fraction of a day shall be considered a whole day. In the case of acquisition of bonds or notes by original subscription, the date of original subscription, or the date of issue of the bonds or notes, whichever shall be later in time, shall be deemed, to be the date of acciuisition, provided that payment in full on the subscription shall have been completed and the bonds or notes delivered thereon. In the case of acquisition of bonds or notes by purchase, if registered bonds or notes of one of the issues above enumerated as acceptable in payment of Federal estate or inheritance taxes have been duly assigned in blank or for exchange or transfer, and delivered to the decedent assignee pursuant to such assignment, the date of such delivery will be deemed the date of acquisition, although such bonds or notes may not have been presented to the Treasury Department or to a Federal Reserve bank for transfer or exchange until a later date. In the case of acquisition of bonds or notes by conversion of bonds or. notes of other issues previously owned, the date of presentation for conversion to the Treasury Department or a Federal Reserve bank will be deemed the date of acquisition: Provided, however. That (a) 4J per cent bonds of the First Liberty Loan Cgnverted and of the Second Liberty Loan Converted issued on conversion of 4 per cent bonds presented after July 1, 1918, and on or before November 9, 1918, pursuant to the provisions of Treasury Departmc^nt Circular No. 114j dated May 9, 1918, shall, for the purpose of reckoning the required perioci of ownership, be deemed to have been acquired on June 15, 1918, in the case of bonds of the First Liberty Loan Converted, and on May 15, 1918, in the case of bonds of the Second Liberty Loan Converted; and (b) 4 per cent bonds of the First Liberty Loan Converted and of the Second Liberty Loan presented for conversion into 4^ per cent bonds on or after March 7, 1919, pursuant to the extension of the conversion privilege under Treasury Department Circular No. 137, as amencied and supplemented, shall be deemed to be converted as of the interest payment date next succeeding the date of presentation for conversion, and such next succeeding interest payment date, and not the date of presentation for conversion, will be deemed to be the date o l acquisition of such bonds for the purpose of reckoning the required period of ownership. Exchange of coupon for registered bonds or notes, or of registered for coupon bonds 'or notes, or of bonds or notes of one denomination for bonds or notes of other denominations of the same issue, or of temporary coupon bonds for permanent bonds, whether before or after the death of the decedent, will not prevent the receipt of the bonds or notes issued upon such exchange for estate or inheritance taxes, provided that no change of ownership takes place. 4. Bonds or notes tendered in payment of taxes pursuant to these regulations must be accompanied by an affidavit of one or more of the legal representatives of the estate on Form 760 Revised (Exhibit A), hereto attached, and the collector is authorized to require such further evidence as may be necessary to enable him to determine .278 REPORT ON THE'FINANCES. that the bonds or notes are properly receivable in payment of estate or inheritance taxes pursuant to law and these regulations. The term ^4egal representative" where it appears in this circular means the executor or administrator of the decedent's estate or, if there be no executor or administrator, such other person or persons as may be recognized' as such under the Estate Tax Law and regulations and entitled to assign any registered bonds or notes owned by the decedent under the regulations of the Treasury Department with regard to United States bonds and notes. 5. On receipt of such bonds or notes, and on making such deter• mination, and provided that the bonds or notes tendered conform to the other provisions of these regulations, the collector shall stamp or plainly write upon the face of each bond or note, over his signature, the following legend in indelible ink: This bond/note has this day been received in payment of (Date.) estate (or inheritance) taxes on the estate of under authority • (Name of decedent.) of law, and will not be redeemed by the United States except for credit of the undersigned -.., Collector of Internal Revenue for the :.... District of Coupons, if any, attached to each bond or note, shall be indelibly stamped or marked ^^canceled" on the face of each coupon in letters of sufiicient size to be plainly legible. 6. Where bonds or notes are owned by a partnership of which the decedent was a member for the six months prior to his death, and have been continuousl}^ so owned for at* least the six months prior to his death, a fractional part of such bonds or notes proportionate to the deceased partner's share in the capital of the partnership will, for the purposes of these regulations, be deemed to have been owned by him to the extent that such fractional part is actually distributed to his estate upon liq.uidation: Provided, however. That nothing herein contained shall be deemed to make bonds or notes acceptable in amounts less than some authorized denomination thereof. I n addition to the affidavit on Form 760 Revised, proof satisfactory to the Secretary of the Treasury must be presented as to the ownership of the bonds or notes by the partnership and the decedent's interest in the partnership; such proof in general should include affidavits of the surviving partners and of the legal representative of the decedent's estate showing (1) the character and extent of the interest of the decedent in the capital of the partnership, (2) any special interest of the decedent in the bonds or notes, (3) the period of ownership of the bonds or notes by the partnership and the period of the decedent's membership in the partnership, and (4) the distribution of the bonds or notes to the decedent's estate on account of his distributive share in the partnership. 7.,Where bonds or notes are held in trust for or otherwise beneficially owned by any person on terms which entitle him unconditionally to demand and receive the legal title or a divided share thereof at any time, he will, for the purposes of these regulations, be deemed the owner of such bonds or notes or such divided share thereof: Provided, however. That nothing herein contained shall be deemed to mafee bonds or notes acceptable in amounts less than some authorized denomination thereoi. In addition to the affidavit on Form 760 Revised, proof satisfactory to the Secretary of the Treasury must be SECRETARY OF THE TREASURY. "" 279 presented as to the ownership of the bonds or notes by the trust and the decedent's interest therein; such proof in general should include affidavits by the trustee and the legal representative of the decedent's estate showing (1) the creation of the trust, the terms and duration thereof, and the interest pf the decedent therein; (2) the property included under the trust, and particularly the period of ownership of the bonds or notes by the trust; and (3) the distribution of the bonds or notes to the decedent's estate on account of his share in the trust estate, and the liability to Federal estate (or inheritance) tax in respect to such bonds or notes. ' . 8. The entire tax may be paid in bonds or notes, or the tax may be paid partly in bonds or notes and partly by any other form, of payment permitted by law or regulations duly in force. Collectors may not, however, receive bonds or notes the par value and accrued, interest of which, computed in accordance with these regulations, aggregate a greater amount than the tax in payment of which the bonds or notes are tendered. After bonds or notes, or cash, have been tendered and duly, received in payment of the tax, an election as to the method of payment will be deemed to have been made by the taxpayer, and therefter requests for the return of such bonds or notes', or cash, and the acceptance of payment in the alternative form will be refused. COUPON BONDS OR NOTES. 9. Coupon bonds or notes received for estate (or inheritance) taxes must be delivered to the collector with all unmatured coupons attached and with all matured coupons detached. Detached matured coupons will not be receivable in payment of such taxes. The portion of the face amount of the current coupon which represents accrued interest to date of receipt for taxes will be determined in the manner prescribed by the interest tables (Exhibits B and C) hereto attached, and such accrued interest will be receivable for estate or inheritance taxes. » o 10. Temporary coupon bonds, all coupons originally attached to which have matured and been detached, will not be accepjted in ,)ayment of estate or Inheritance taxes pursuant to the provisions of this circular, b u t must first be exchanged for permanent bonds, pursuant to the provisions of Treasury Department Circular No. 164, dated December 15, 1919, as amended and supplemented: Provided, however, That Fourth Liberty Loan 4^ per cent bonds of 1933-1938, in temporary form, will be acceptable until April 15, 1921, and First Liberty Loan Second Convertecf 4^ per cent bonds of 1932-1947, in temporary form, will be acceptable until June 15, 1921, in payment of such taxes, accrued interest on such bonds to date of receipt of taxes being covered for the current interest period by the temporary coupon bond; b u t after such dates, respectively, such temporary bonds must be exchanged for permanent bonds before presentation. 11. Coupon bonds or notes, after being received, and reception indorsed on the bonds or notes as above required, will be deposited by the collector in the Federal Reserve bank of the district in which his office is located (or Federal Reserve branch bank, as hereinafter provided) as a deposit of the par value with accrued interest, determined as above required. Such bonds or notes, unless delivered direct , to the Federal Reserve bank or branch when located in the same city, 280 REPORT ON THE FINANCES. must be transmitted by registered mail but will not be insured. • The collector will transmit with the bonds or notes an accurate schedule on Form 761 Revised (Exhibit D) hereto attached, showing the serial number and denomination of each bond or note transmitted, the issue, the date of receipt for taxes, the amount of accrued interest, and the amount for which credited against estate or inheritance taxes. Such schedule shall be made in quadruplicate, the original to accompany the bonds or notes deposited with the Federal Reserve bank, the duplicate to be transmitted to such Federal Reserve bank under separate cover, the triplicate to be transmitted to the Secretary of the Treasury, Division of Loans and Currency, Washington, and the remaining copy to be retained by the collector. Collectors located in Federal Reserve bank branch cities will deposit coupon bonds or notes received by them hereunder with such branches in accordance with the provisions hereof, and the term ^^Federal Reserve bank," where it appears herein, includes such branches, unless otherwise indicated by the context. 12. The Federal Reserve bank on receipt and examination of such bonds or notes will charge the Treasurer's account with par and accrued interest to date of receipt for taxes as reported by the. collector, give credit in the Treasurer's account to the collector for like amount, and issue a certificate of deposit in triplicate on National Bank Form 15, transmitting the original to the Secretary of the Treasury through the Treasurer of the United States with its transscript, and the duplicate and triplicate to the collector, who will forward the duplicate to the Commissioner of Internal Revenue. Such Federal Reserve bank will then physically cancel the bonds or notes and coupons attached, and transmit the same to the Treasurer of the United States with the original or duplicate of the collector's schedule (Form 761 Revised), to which shall be added the Federal Reserve bank's certificate as shown thereon. 13. In the event that bonds or notes in coupon form are tendered to a collector of internal revenue in payment of Federal estate or inheritance taxes hereunder, and after having been received by the collector and stamped or otherwise indorsed by him as provided herein, are found to be not acceptable in payment of such taxes. Federal Reserve banks will issue clean bonds or notes in exchange for such erroneously stamped or indorsed coupon bonds or notes through the denominational exchange account: Provided, however. That the bonds or notes erroneously stamped or indorsed and presented for such exchange must be accompanied by an official certificate on F o r m 834 (Exhibit E) attached hereto, signed by the collector of internal revenue concerned, to the effect that the stamp or indorsement was affixed in error and that the bonds or notes (which must be specifically described) were not in fact accepted in payment of estate or inheritance taxes. Such exchanges need not be reported specifically to the Department, b u t the bonds or notes so stamped or indorsed and replaced must be accompanied by the certificate aboye described when lorwarded by the Federal Reserve bank to the Department for credit. In case any such bonds or notes have been deposited with a Federal Reserve bank and charged to the Treasurer's account and credit therein given to the collector therefor, pursuant to paragraph 12 hereof, the Federal Reserve bank will issue new bonds or notes therefor as herein provided through its denominational exchange SECRETARY OF THE TREASURY. 281 account, taking the receipt of the collector for such bonds or notes on Form N - 2 (Exhibit G) attached hereto, and charging the collector in the Treasurer's account with the amount previously credited therein on account of such bonds or notes, supporting the entry with the receipt oii Form N - 2 . REGISTERED BONDS OR NOTES. n 14. Registered bonds or notes are also receivable for estate or inheritance taxes in accordance with these regulations. In addition to requiring the affidavit (Form 760 Revised) the collector shall determine that the registered owner whose name is inscribed on the borid or note is the decedent whose estate is liable to estate (or inheritance) taxes and that the bond or note is presented from the custody or control of the legal representative or representatives of such estate. Such bond or note shall be assigned to " the Secretary • of the Treasury for redemption in payment of estate (or inheritance) t a x e s " by the authorized legal representative or representatives of the deceased registered owner. If an executor or administrator of the decedent's estate has been appointed, such representative or representatives must furnish to the collector a certificate under the seal of the court in which the estate is being administered or a duly certified copy of the letters testamentary or of administration, showing the appointment of such representative or representatives, the date thereof, and that the appointment is still in force. Such certificate or certification of the copy must be dated not more than thirty days prior to its presentation to the collector. AU such documents of authority will be attached to the bond or note and forwarded therewith by the collector as hereinafter provided. Where there are two or more legal representatives, all must unite in the assignment, unless by decree of court or testamentary provision some one or more of them is designated or empowered to dispose of the bonds or notes. If no executor or administrator has been appointed, the assignment must be made by the person or persons entitled to assign the bonds or notes under the regulations of the Treasury Department as to transfers without administration, and the bonds or notes will be accepted subject to submission tb the Secretary of the Treasury, Division of Loans and Currency, for specific approval of the transfer. The form printed on the back of the bond or note must be used for assignment, and the assignment must be dated and properly acknowledged as prescribed in the note printed on the back of the bond or note. Officers authorized to take acknowledgments of assignments of registered bonds or notes in addition to those mentioned on the back of the bond are designated in paragraph 16 of Treasury Department Circular No. 141, dated September 15, 1919, and in the general regulations of the Treasury Department with regard to United States bonds and notes. The collector will satisfy himself that the above-mentioned documents of authority and the requisite signatures and acknowledgments are in hand before noting on the bond or note its reception for taxes, as provided in paragraph 5 herepf, but the final determination of the correctness or validity of the assignment will be made by tht' Secretary of the Treasury,. Division of Loans and Currency, at Washington, on receipt of all such bonds or notes and documents, when transmitted as hereinafter provided. 282 REPORT ON' THE FINANCES. 15. By reason of the periodical closing of the transfer booTcs of the Treasury Department for the payment of interest on registered bonds and notes, and the impossibility of stopping payment of interest to the registered holder during the period of such closing, registered bonds and notes will not be receivable in payment of estate or inheritance taxes during the period of closing of the boolcs of the issue in question unless an adjiistment of interest is made with the coUector as prescribed by paragraph 17 hereof. The books are closed with respect to each issue tor dne month prior to each interest date. The closed periods with respect to each bond or note may therefore be determined by inspection of the bond or note itself, being one month prior to each interest payment date named thereon, and until the day following such interest payment date. The closed periods for each issue of bonds or notes receivable for estate or inheritance taxes are also stated in the table (Exhibit H) hereto attached. i6. Collectors will examine each registered bond or note tendered for estate or inheritance taxes to determine whether the transfer books of the issue in question are then open or closed. If the books are then open but are due to close on a date too early to permit the bond or note to be transmitted to the Secretary of the Treasury, Division of Loans and Currency, and to be received by such division prior to the closing date, the collector will advise the. Secretary of the Treasury, Division of Loans and Currency, by telegraph at the time of receipt of the bond or note, using form (Exhibit 1) hereto attached, and will immediately confirm the same by mail. The Division of Loans and Currency will thereupon stop interest payment on such bond or note. The Secretary reserves the right to require an adjustment of the interest on any registered bond or note tendered to the collector during an open period but received at the Division of Loans and Currency during a closed period of the transfer books of the issue in (^[uestion. Executors and other legal representatives are urged to tender registered bonds or notes at a time when the transfer books of such bonds or notes are open, or to exchange such bonds or notes for coupon bonds or notes before the transfer books of such bonds or notes close in order to avoid the necessity for interest adjustments. 17. Registered bonds or notes tendered pursuant to these regulations will be received at par and accrued interest computed in accordance with tables (Exhibits B and C), hereto attached. If such bonds or notes are tendered while the transfer books are open the interest will be computed from the last preceding interest date as shown thereon to the date of receipt. If they are tendered while the transfer books are closed, since it is impossible to stop the mailing of the next interest check, they may be received at par, with a deduction for the interest from the date of receipt to such next following interest date, computed in accordance with said tables. 18. Registered bonds or notes received pursuant to these regulations, and bearing the stamp or writing required by paragraph 5 hereof, will be transmitted with all accompanying documents of authority to the Secretary of the Treasury, Division of Loans and Currency, Washington, by registered mail, but not insureds The collector will make an accurate schedule on Form 762 Revised (Exhibit J), hereto attached, in triplicate, showing the date of death of the decedent, the serial number and denomination of each bond or SECRETARY OF THE TREASURY. 283 note, the issue, accrued interest, the date of receipt for taxes, and the amount for which credited against estate or inheritance taxes. The original of this schedule must accompany the bonds or notes sent to the Secretary of the Treasury, Division of Loans and Currency; the duplicate shall be transmitted to the Secretary of the Treasury,' Division of Loans and Currency, under separate cover; and the triplicate shall be retained by the collector. 19. On receipt of such bonds or notes, the Division of Loans and Currency will determine whether the assignment is sufficient and has been properly executed, whether the bonds or notes are of an issue, receivable for estate or inheritance taxes hereunder, whether the Department's record of registration is consistent with the affidavit of ownership (Form 760 Revised), and the amount at which such bonds or notes are receivable for estate or inheritance taxes, and will, if it finds the bonds or notes in order, .transmit them with its advice on Form L. & C. 122 (Exhibit K), hereto attached, to the Treasurer of the United States for redemption. The Treasurer will thereupon cancel the bonds or notes and issue a certificate of deposit in the name of the collector, in triplicate, and will forward the original to the office of the Secretary of the Treasury, Division of Bookkeeping and Warrants, and transmit the duplicate and triplicate of such certificate to the Commissioner of Internal Revenue, Accounts Division, who will forward the triplicate to the collector. 20. In the event that bonds or notes in registered form are tendered to a collector of internal, revenue in payment of Federal estate or inheritance taxes, pursuant hereto, and after having been assigned to the Secretary oi the Treasury for redemption in payment of such taxes and received and stamped or otherwise indorsed by the collector as provided herein, are found to be not acceptable in payment of such taxes, the Secretary of the Treasury, or the Federal Reserve banks, will either (1) accept such registered bonds or notes for exchange for new registered bonds or notes registered in the same name, or (2) accept such registered bonds or notes, notwithstanding the assignment to the Secretary of the Treasury and the collector's stamp or indorsement thereon, for transfer or exchange pursuant to such subsequent assignments as may appear on such bonds or notes: Provided, however, in either case, that such registered bonds or notes are accompanied by an official certificate on Form 835 (Exhibit F), attached hereto, signed by the collector of internal revenue concerned, to the same efiect as the certificate prescribed in paragraph 13 hereof, with reference to coupon bonds or notes. Registered bonds or notes so tendered in payment of Federal estate or inheritance taxes and erroneously assigned and stamped or indorsed must be forwarded b}^ the Federal Reserve bank to the Treasury Department, Division of Loans and Currency, in regular course, and when forwarded must be accompanied by the official certificate of the collector. GENERAL. ' 21. Until certificates of deposit are received by the collector, the amounts of bonds or notes deposited must be carried as ^Tash on hand," and not credited as ^'Collections," as the dates of the certificates of deposit determine the dates of collections. 284 REPORT ON T H E FINANCES. 22. The Secretary of the Treasury may amend or withdraw the foregoing regulations in whole or in part at any time. D. F . HOUSTON, Secretary of the Treasury. EXHIBIT A. TREASURY DEPARTMENT,^ INTERNAL REVENUE, FORM 760 (REVISED), AFFIDAVIT OF OWNERSHIP OF BONDS/NOTES. STATE OF County of ss: We (I), , the undersigned execut , adrninistrat , beneiiciar , legal representative of t h e estate of , deceased, who died on , . 1 9 . . . , do severally swear that the b o n d . . / n o t e . . described below bearing interest at a higher rate than 4 per centum per annum was (or were) each owned by the decedent continuously for at least six months prior to the date of his (or her) death, and upon such date constituted part of his (or her) estate, and that the following statements with respect to each such bond/note are true to the knowledge of deponent, to wit: . . Description of issue (use short titles ofloans). Coupon or registered. Name of registered holder (in the case of registered bonds or notes). Date of acquisition by decedent,* Serial number. Face • value. (Each bond or note must be entered separately.) (Signature.) (Signature.) (Address for mail.) (Address for mail,) Subscribed and sworn to before me at ,19.... this . . . . . . day of • [SEAL.] Notary Public, Deputy Collector. * See paragraph 3 of Department Circular No. 225, dated unlmown, supplemental affidavit should be attached stating of acquisition may be inferred. Statements not within the unless sources of information and grounds of behef are given Jan, 31, 1921. Where date of acquisition is all facts and circumstances from vvhich date knowledge of deponent will be disregarded in full. 285 SECRETARY OF T H E TREASURY. EXHIBIT B, TREASURY DEPARTMENT, DIVISION OF LOANS AND CURRENCY. Form L. & C, 90. (Ed. 50,000—Sept. 16, 1918.) L I B E R T Y LOAN I N T E R E S T TABLE F O R 4 i P E R CENT BONDS, Interest on ^100 at 4 \ per cent per annum, payable semiannually {2\ per cent per half year). . [Tables prepared by Government Actuary.] NOTE,—Interest on United States bonds is computed on actual days basis within t h e interest period. For any given interest computation t h e appropriate column to be used may be determined from the following: NUMBER OP DAYS I N EACH HALF YEAR. H a l f year ending the 15th day of— Regular years— Days. March, May, July, August 181 April, June 182 October, December 183 January, February, September, November 184 Leap years— Days. March, May, July, August 182 April, June, October, December. 183 January, February, September, November .' 184 Half year of 181 days. Half year of 182 days. Half year of 183 days. $0.01174033 . 02348066 , 03522099 . 04696133 . 05870166 $0.01167582 . 02335165 . 03502747 . 04670330 .05837912 $0.01161202 . 02322404 . 03483607 . 04644809 . 05806011 $0.01154891 . 023097S3 . 03464674 . 04619565 . 05774457 . 07044199 . 08218232 . 09392265 . 10566298 .11740331 .07005495 . 08173077 . 09340659 . 10508242 . 11675824 .06967213 .08128415 . 09289617 . 10450820 . 11612022 . 06929348 . 08084239 . 09239130 . 10394022 . 11548913 . 12914365 . 14088398 .15262431 .16436464 . 17610497 . 12843407 . 14010989 . 15178571 - . 16346154 . 17513736 . 12773224 .. 13934426 .. 15095628 , 16256831 .17418033 .12703804 . 13858696 . 15013587 . 16168478 . 17323370 19 20 . 18784530 ,19958564 . 21132597 . 22306630 . 23480663 . 18681319 . 19848901 . 21016484 . 22184066 .23351648 . 18579235 . 19740437 . 20901639 . 22062842 . 23224044 . 18478261 . 19633152 . 20788043 , 21942935 . 23097826 21 22 23 24 25 . 24654696 , 25828729 . 27002762 .28176796 .29350829 . 24519231 . 25686813 . 26854396 . 28021978 . 29189560 . 24385246 . 25546448 . 26707650 . 27868852 . 29030055 . .24252717 ,25407609 . 26562500 . 27717391 . 28872283 . 30524862 .31698895 . 32872928 . 34046961 . 35220994 . 30357143 . 31524725 . 32692308 . 33859890 . 35027473 . 30191257 .31352459 .32513661 .33674863 .34836066 . 30027174 . 31182065 , 32336957 . 33491848 . 34646739 .36395028 .37569061 . 38743094 . 39917127 . .41091160 . 36195055 .37362637 .38530220 . 39697802 . 40865385 .35997268 .37158470 .38319672 .39480874 .40642077 .35801630 .36956522 .38111413 . 39266304 . 40421196 .42265193 . 43439227 . 44613260 . 45787293 . 46961326 . 42032967 . 43200549 . 44368132 . 45535714 . 46703297 .41803279 . 42964481 . 44125683 . 45286885 . 46448087 . 41576087 . 42730978 . 43885870 . 45040761 . 46195652 Days. 1 2 3 4 5 . . . 6 7.... 8 9 10 11 12. 13 14 15 ! : . . . . . . ... : .. . . . . 16 17 18 26 27 28 29 30 31 32 33 34 35 f : .. ... . . .. 36 ... 37 38 39 40 .. : Half year of 184 days. 286 REPOBT ON THE FINANCES. Half year of 181 days. Days. 41 42 43 44 45 . . . . 46 47 48 49 50 : 51 52 53 54 55 56 57 58 59 60 - 61 62 63 64 65 .... 66 67 68 69 70 71 72 73 74 75. . . . .. .. . ... . . . . . 76 77 78 79 80 81 82 83 84 85 1 : '.... 86 87 88 89 90 91 92 93 94 95 : . : 96 97 98 99 100 101 102 103 104 105 106 107 108 109. . 110 . . . . . . . . . . . .• Half year of 182 days. Half year of 183 days. Half year of 184 days. $0,47350543 . 48505435 . 49660326 .50815217 .51970109 SO. 48135359 . 49309392 . 50483425 , 51657459 ,52831492 .$0.47870879 ,49038462 , 50206044 . 51373626 . 52541209 SO, 47609290 , 48770492 .49931694 , 51092896 , 52254098 .54005525 , 55179558 , 56353591 , 57527624 , 58701657 . 53708791 . 54876374 .56043956 . 57211538 • ,58379121 , 53415301 ,54576503 ,55737705 ,56898907 . 58060109 .53125000 .54279891 ,5543478a ,56589674 ,57744565 . 59875691 . 61049724 ,62223757 . 63397790 . 64571823 • ,59546703 ,60714286 ,61881868 ,63049451 . 64217033 ,59221311 .60382514 ,61543716 .62704918 ,63866120 .58899457 .60054348 ,61209239 ,62364130 ,63519022 , 65745856 . 66919890 . 68093923 , 69267956 , 70441989 ,65384615 ,66552198 . 67719780 .68887363 , 70054945 ,65027322 ,66188525 .67349727 , 68510929 , 69672131 .64673913 . 65828804 . 66983696 . 68138587 .69293478 . 71616022 , 72790055 . 73964088 .75138122 .76312155 . 71222527 . 72390110 , 73557692 . 74725275 ,75892857 , 70833333 .71994536 .73155738 , 74316940 ,75478142 .70448370 .71603261 .72758152 . 73913043 . 75067935 .77486188 .78660221 .79834254 . 81008287 . 82182320 ,77000440 . 78228022 .79395604 . 80563187 . 81730769 , 76639344 ,77800546 .78961749 , 80122951 , 81284153 . 76222826 . 77377717 . 78532609 .7968750 < . 808423^1 . 83356354 . 84530387 . 85704420 . 86878453 . 88052486 -, 82898352 , 84005934 . 85233516 . 86401099 . 87568681 . 82445355 . 83606557 , 84767760 . 85928962 . 87090164 .81997'83 . 83152174 .8430 065 .85461957 ,86616848 . 89226519 . 90400552 . 91574586 92748619 , 93922652 . 88736264 , 89903846 . 91071429 . 92239011 . 93406593 . 88251366 . 89412568 .90573770. .91734973 .92896175 .87771739 .88926630 .•90081522 . . 91236413 . 92391304 . 95096685 .96270718 . 97444751 . 98618785 . 99792818 . 94574176 . 95741758 . 96909341 , 98076923 , 99244505 ,94057377 ,95218579 , 96379781 , 97540984 , 98702186 . 93546196 . 94701087 . 95855978 .97010870 .98165761 1.00966851 1.02140884 1.03314917 1.04488950 1.05662983 1. 00412088 1,01579670 1,02747253 1,03914835 1, 05082418 , 99863388 .1,01024590 1.02185792 1.03346995 1.04508197 . 99320652 1,00475543 1.01630435 1.0278532& 1,03940217 1. 06837017 1.08011050 1,09185083 1,10359116 1.11533149 1. 06250000 1.07417582 1.08585165 1.09X^2747 1.10920330 1.05669399 1.06830601 1.07991803. 1.09153005 1.10314208 1,05095109 1. 06250000 1,07404891 1,085597831.09714674 1.12707182 1,13881215 1,15055249 1,16229282 1.17403315 1.12087912 1.13255495 1.14423077 1.15590659 1,16758242 1.11475410 1.12636612 1.13797814 . 1,14959016 1,16120219 1,10869565 1.12024457 1.13179348 1.14334239 1.15489130 1,18577348 1,19751381 1,20925414 1,22099448 1.23273481 1.17925824 1.19093407 1.20260989 1.21428571 1.22596154 1.17281421 • 1,18442623 1,19603825 1.20765027 1.21926230 1,16644022 1,17798913 1,18953804 1.20108696 1,21263587 1,24447514 1.25621547 1, 26795580 1.27969613 1.29143646 1.23763736 1.24931319 1.26098901 1, 27266484 1, 28434066 1.23087432 1. 24248634 1.25409836 1.26571038 1.27732240 1.22418478 1,23573370 1.24728261 1.25883152 1,270380^3 287 SECRETARY OF T H E TREASXJE.Y. Days. 111. 112 11.3 ii4"i."!!!il!!!!!. 115 116. : Half year of 181 days. Half year of 182 days. Half year of 183 days. SI. 30317680 1.31491713 1.32665746 1,33839779 1,35013812 SI.29601648 1. 30769231 1,31936813 1,33104396 1,34271978 SI. 28893443 L 30054645 1.31215847 1.32377049 1.33538251 Half year of 184 days. SI,28192935 1,29347826, 1,30502717 .1,31657609 1,32812500 m 1.34699454 1. 35860656 1,33967391 1,35122283 1.37021858 1.36277174 118. 1. 38183060 ^.- 1.37432065 119 1. 39344262 1,38586957 120 •...:..•... 1,39741848 1. 40505464 1,41277473 1.42058011 121 1, 41666667 1,42445055 1.43232044 1,40896739 122. ... 1. 42827869 1,43612637 1.44406077 1,42051630 123 1,44780220 1, 43989071 1. 45580110 1,43206522 124 1,45947802 1,45150273 1.46754144 1,44361413 1,45516304 1. 46311475 1.47928177 . 1.47115385 126 1,48282967 1-. 47472678 1.49102210 1,46671196 127 1,49450549 1,48633880 1.50276243 1.47826087 128 1,50618132 1, 49795082 . 1.48980978 1.51450276 1,51785714 1.50956284 1,52624309 1.50135870 130 : 1.51290761 1, 52953297 1. 52117486 1, 53798343 131 !. 1, 54120879 1. 53278689 1, 54972376 1. .52445652 1,55288462 1.54439891 1. 56146409 1.53600543 1, 56456044 1.55601093 1. 57320442 1,54755435 134 . . . . . . . . . [ . . . . . 1.57623626 1,56762295 1. 58494475 1.55910326 135 1.57065217 1.58791209 1.57923497 1,59668508 -1.59084699 1.59958791 1,60842541 1.58220109 137 1.60245902 1.61126374 1.59375000 138.. .... 1,62016575 1.61407104 1,62293956 . 1,63190608 1.60529891 1.62568306 1,63461538 1,64364641 1.61684783 1.62839674 1.64629121 1.63729508 1,65538674 141. ... 1.65796703 1.64890710 1.66712707 1.63994565 142: 1.66964286. 1.66051913 1.67886740 1.65149457 143 1.68131868 1.67213115 1.69060773 1.66304348 144 1.69299451 . 1.68374317 1.70234807 1.67459239 145 1.68614130 1.69535519 1.70467033 1.71408840 1.70696721 1.71631615 1.72582873 1.69769022 147 1.71857923 1.72802198 1.73756906 1.70923913 148 ; 1.73019126 1.73969780 1.749309391.72078804 149. 1.74180328 1.75137363 1.76104972 1.73233696 150 1.74388587 1.75341530 1.76304945 1.77279006 151 : 1.76502732 1.77472527 1. 78453039 1.75543478 152 1.78640110 1.77663934 1.79627072 1.76698370 1.79807692 1.78825137 1.80801106 1.77853261 154 •. 1.80975275 1.81975138 1.79986339 1.79008152 155 1.80163043 1.82142857 . 1.81147541 ,1.83149171 156 1.83310440 1.82308743 1.84323204 1.81317935 157 1.84478022 1.83469945 1.85497238 1.82472826 158. . 1.85645604 1.84631148 , 1.86671271 1.83627717 159 1.86813187 1.857C2350 1.87845304 1.84782609 1.85937500 1.86953552 1.87980769 1.89019337 161 :... : 1.88114754 1.89148352 1.90193370 1.87092391 162 1.90315934 1,89275956 1.91367403 1.88247283 163 1.91483517 1,90437158 1.92541436 1.89402174 164 1.92651099 1,91598361 1.93715470 1.90557065 165 '. 1.91711957 1.93818681 1,92759563 1,94889503 166 1,93920765 1.94986264 - 1.92866848 167 1,96063536 1.95081967 1.96153846 1.94021739 168: 1,97237569 1.96243169 1.97321429 1.95176630 169. 1,98411602 1.97404372 1,98489011 1.96331522 1,99585635 170 1.97486413 1.98565574 1,99656593 2.00759669 1.99726776 1.98641304 2.00824176 2.01933702 172 2.00887978 2.01991758 1.99796196 2.03107735 173 2.02049180 2.00951087 2.03159341 2.04281768 2.03210383 2.04326923 '2.02105978 2.05455801 2.03260870 2.05494505' 2.04371585 2.06629834 176 2.06662088 2.05532787 2.07803867 2.04415761 177. . 2.07829670 2.06693989 2.08977901 2.05570652 178 2.08997253 2.10151934 2.07855191 2.06725543 179.' 2.10164835 2.07880435 2.11325967 2.09016393 180 2.09035326 2.10177596 2.11332418 2.12500000 2.11338798. 2.12500000 2.10190217 182 : 2.12500000 2.11345109 183 2.12500000 184 Ill 1, 36187845 1,37361878 1,38535912 1,39709945 1,40883978 • 1. 35439560 1.36607143 1.37774725 1.38942308 1,40109890 288 EEPOET OiT T H E FINANCES. Example. $10,850 Third 4is tendered in payment of estate taxes January 5, 1921, Interest payment dates on Third 4^s are shown on t h e face thereof to be March 15 and September 15 i n each year. Current half year interest period therefore ends March. 15, 1921, The year 1921 being a ''regular" (not a " l e a p " ) year, find " M a r c h " in the list at head of table under '' Regular years.'' This list shows that t h e half year ending March 15 in a regular year has 181 days. Compute number of days since t h e beginning of such half year t h a t have expired to date of tender of bonds, thus: 1920. Days. Sept. 15 to Sept. 30 October November December :. 15 31 30 31 1921, January *. 5 Total 112 Enter table headed "Half year of 181 days" (second column) and seek in that column the amount of interest on $100 for 112 days. This will be found opposite t h e figure "112" (days) in first column, and proves to be $1,31491713, which is t h e decimal for $100 for 112 days. The amount of bonds presented being $10,850, the decimal above stated must be multiplied b y 108.5; the result is $142.6685, which is t h e amount of accrued.interest .due on January 5, 1921, on $10,850 Third 4is;'accordingly t h e bonds are worth for estate taxes $10,992.67. Fractions of cents if less than ^ cent, will be disregarded; if J cent or more, will be counted as 1 cent. EXHIBIT C. TREASURY DEPARTMENT, DIVISION OF LOANS AND CURRENCY. FORM L . & C, 226. VICTORY L I B E R T Y LOAN. INTEREST TABLE FOR 4 | P E R CENT VICTORY N O T E S INHERITANCE T A X E S . RECEIVED FOR ESTATE OR [Prepared by Governinent actuary.] NOTE.—Interest on Victory notes is computed on actual days' basis within the interest period. For any given interest cornputation, t h e appropriate column to be used may be determined from t h e following: NUMBER OF DAYS IN EACH HALF ..YEAR. Half year ending the 15th day of^ Regular years—' June December Days, | Leap years— 182 June 183 | December Days, 183 183 289 SECRETABY OF T H E TKEASUEY. Interest on $100 at 4f per cent per a n n u m , payable semiannually (2| per cent per half year). N u m b e r of days. Half year of 182 days. 1 2.. 3 4 5 SO, 0130495 . 0260989 . 0391484 . 0521978 .0652473 Interest on $100 at 4 1 per cent per a n n u m , payable semiannually (2| per cent per half year). N u m b e r of days-. Half year of 182 days. Half year of 183 days. $0,8612637 . 8743132 . . 8873626 . 9004121 . 9134615 66 $0,0129781 .0259563 • 67 . 0389344 68...... 69...... .0519126 70 .0648907 Half year of 183 days. $0.8565574 .8695355 . 8825137 . 8954918 .9084699 . 9265110 . 9395604 . 9526099 . 9656593 . 9787088 . 9214481 . 9344262 . 9474044 . 9603825 .9733607 76 77 78 79.......... 80 . 9917582 1. 0048077 1. 0178571 1,0309066 1. 0439560 .9863388 . 9993169 1,0122951 1.0252732 1.0382514 . 2076503 . 2206284 . 2336066 . 2465847 . 2595628 81 82 83 84 85...- 1, 0570055 1.0700549 1.0831044 1,0961538 1.1092033 1,0512295 1,0642077 1.0771858 1,0901639 1,1031421 . 2740385 . 2870879 . 3001374 .3131868 . 3262363 . 2725410 . 2855191 . 2984973 . 3114754 . 3244536 86 87 88 89 90 1,1222527 1,1353022 1,1483516 1,1614011 1.1744505 1,1161202 1,1290984 1,1420765 1.1550546 1.1680328 . 3392857 . 3523352 . 3653846 . 3784341 . 3914835 . 3374317 . 3504098 . 3633880 . 3763661 . 3893443 91 92 93 94 95 1,1875000 1.2005495 1,2135989 1. 2266484 1.2396978 1.1810109 1.1939891 1,2069672 1.2199454 1.2329235 35 . 4045330 .'4175824 .4308319 .4436813 . 4567308 . 4023224 . 4153005 . 4282787 . 4412568 . 4542350 96 97 98 99 100 1, 2527473 1,2657967 1, 2788462 1,2918956 1,3049451 1.2459016 1.2588798 1.2718579 1.2848361 1.2978142 36 37 38 39 40 . 4697802 . 4828297 .4958791 . 5089286 . 5219780 .4672131 .4801913 .4931694 . 5061475 , 5191257 101 102 103 104 105 1,3179945 1,3310440 1,3440934 1,3571429 1.3701923 1.3107923 1.3237705 1.3367486 1,3497268 1. 3627049 41 42 43 . 5350275 . 5480769 . 5611264 . 5741758 . 5872253 .5321038 . 5450820 .5580601 .5710383 .5840164 108 107 108 109 110. 1.3832418 1,3962912 1,4093407 1,4223901 1, 4354396 1, 3756a31 1. 3886612 1, 4016393 1, 4146175 1, 4275956 . 6002747 . 6133242 . 6263736 . 6394231 . 6524725 .5969945 .6099727 .6229508 .6359290 .6489071 Ill 112 113 114 115 1, 4484890 1, 4615385 •1,4745879 1, 4876374 1. 5006868 1,4405738 1, 4535519 1,4665301 1,4795082 1,4924863 . 6655220 . 6785714 • . 6916209 . 7046703 . 7177198 .6618852 .6748634 .6878415 .7008197 .7137978 116 117 118..... 119 120 1, 5137363 1, 5267857 1. 5398352 1, 5528846 1.5659341 1, 5054645 1,5184426 1,5314208 1,5443989 1,5573770 .7307692 . 7438187 . 7568681 . 7699176 . 7829670 .7267760 .7397541 .7527322 .7657104 .7786885 121 122 123 124 125 1. 5789835 1,5920330 1,6050824 1,6181319 L6311813 1,5703552 1, 5833333 1. 5963115 1.6092896 1.6222678 1, 6442308 1, 6572802 1, 6703297 1,6833791 1.6964286 1.6352459 1.6482240 1.6612022 1.6741803 1.6871585 6 7 8 9 10 . 0782967 . 0913462 . 1043956 . 11744.51 .1304945 . 0778689 . 0908470 . 1038251 .1168033 •. 1297814 11 12 13 14 15 .1435440 .1565934 . 1696429 . 1826923 . 1957418 .1427596 . 1557377 .1687158 .1816940 . 1946721 16 17 18 19 20 . 2087912 . 2218407 . 2348901 . 2479396 . 2609890 21 22 23 24 25 26 27 28 29 30 31 32 33 45 46 48 49 50 51 52 53 55 56 58 59 €0 61 62 ^65 " " . 7960165 • .8090659 . 8221154 . 8351648 . 8482143 70073—FI 1921- '10 71. 72 73 74 75 126 .7916667 . 8046448 * 127 128 .8176230 . 8306011 129 . 8435792 130 : -.... . 290: EEPOET ON THE FINANCES. Interest o n $100 at 4f per cent per a n n u m , payable semiannually (2| per eent per half year.) N u m b e r of days. '/ Half year of 182 days. 131:; 132 133 134 135. . . . . 136 137 138 139 140 Half year of 183 days. $1.7094780 1.7225275 1. 7355769 1, 7486264 1. 7616758 $1.7001366 1.7131148 1.7260929 1. 7390710 1.7520492 1, 7747253 , 1.7877747 . 1.8008242 . 1.8138736 1, 8269231 1,7650273 1,7780055 1,7909836 1,8039617 1.8169399 141 142. 143 1, 8399725 1, 8530220 1, 8660714 1,8791209 1, 8921703 1, 8299180 1, 8428962 1,8558743 1. 8688525 1. 8818306 148 149. ... 150. . 1,9052198 1,9182692 1,9313187 1.9443681 1, 9574176 1, 8948087 1,9077869 1,9207650 1,9337432 1.9467213 151.1 152 153 154 155.- 1, 9704670 1.9835165 1,9965659 2,0096154 2, 0226648 1.9596995 1.9726776 1,9856557 1.9986339 2,0116120 156 157 2, 0357143 2,0487637 2, 0245902 2,0375683 144 145 146 147 N u m b e r of days. Interest on $100 at 4f per cent per a n n u m , payable semiannually (2| per cent per half year.) Half year of 182 days. Half year of 183 days. $2,0618132 2,0748626 2,0879121 $2.0505464 2,0635246 2,0765027 • ; 2,1009615 2.1140110 2,1270604 2,1401099 2.1531593 2,0894809 '2.1024590 2.1154372 2.1284153 2.1413934 166...... . •. 167 168 169 170.: 2,1662088 • 2,1792582 2,1923077 2,2053571 2, 2184066 2,1543716 2.1673497 2,1803279 2,1933060 ' 2,2062842 2,2314560 2,2445055 2,2575549 2,2706044 2,2836538 2, 2192623 2,2322404 2,2452186 2.2581967 • 2.2711749 2,2967033 2,3097527 2, 3228022 2,3358516 2,3489011 2,2841530 2,297i311 2.3101093 2. 3230874 2,3360656 2,3619505 2,3750000 2,3490437 2.3620219 2,3750000 158 159 160 161 162 .163 164 165 . 171 172 173 174 175 176 177 178 179 180 181 182 183 . ." . . . Example. |llj350 4f per cent Victory notes tendered in payment of estate taxes, January 5, 1921. ' , Interest payment dates on Victory notes are shown on the face thereof to be June 15 and December 15 in each year, and at maturity. Current half-year interest period therefore ends June 15, 1921. The year 1921 being a regular year, find "June" in the list at head of table under . ''Regular year." This list shows that the half year ending June 15, in a regular year, has 182 days. Compute number of days since the beginning of such half year that have expired to date of tender of^note, thus: 1920. • December 15 to December 31 • Days. 16 1921. January 5 TotaL .....: .21 Enter table headed ''Half year of 182 days" (second column) and seek in that column the amount of interest on $100 for 21 days. This will be found opposite the figure "21" (days) in the first column, and proves to be $0.2740385, which is the decimal for $100 for 21 days. The amount of notes presented being $11,350, the decimal above stated must be multiplied by 113.5; the result is $31.1034, which is the amount of accrued, interest . due on January 5,1921, on $11,350 Victory 4f's—accordingly, the notes are worth for estate taxes, $11,381.10. Fractions of cents, if less than J cent, will be disregarded; if J cent or more, will be ' counted as 1 cent. 291 SECRETARY OF T H E TREASURY. EXHIBIT D . TREASURY DEPARTMENT, INTERNAL REVENUE. FORM 761 (revised). SCHEDULE OF COUPON B O N D S / N O T E S R E C E I V E D BY COLLECTOR I N PAYMENT OF E S T A T E OR INHERITANCE T A X E S AND TRANSMITTED TO F E D E R A L R E S E R V E B A N K . : • »i9.... Schedule of United States coupon , received b y ' -..., "(Short title of issue.)" collector of internal revenue of the . . . . . . . . . . . . . district of of estate (or inheritance) taxes on the estate of on the above date to the Federal Reserve Bank of (Signed) , i n payment , and transmitted ^ , Collector. <Use SeparateSchedule for EachlSSUE of Bonds/Notes. Enter Each Bond/Note of Such Issue Separately,) Serial No, of bond/note. Face value. Accrued interest. Total (amount for which accepted for taxes). Date accepted by collector. ^ ...... Total FEDERAL RESERVE B A N K OF 19... I hereby certify t h a t I have examined and forwarded to t h e Treasurer of the United States t h e above-described bonds/notes, which were received from t h e collector. named, amounting to. $ - - . - - - , principal, and $ - . . - . - accrued interest, which amounts have been charged and credited in the Treasurer's general account this day pursuant to the regulations of the Treasury Department, Cashier. •EXHIBIT E . TREASURY DEPARTMENT, INTERNAL REVENUE, FORM 834. CERTIFICATE OF ERRONEOUS INDORSEMENT O F COUPON B O N D S / N O T E S . TREASURY DEPARTMENT, INTERNAL R E V E N U E BUREAU, Office of the Collector of Internal Revenue, , District of Date THE SECRifeTAR'x OP THE T R E A S U R Y : - Referring to couppn as follows: i . (Use short titleof loan,)* Serial Nos. Denomination. Date of next maturing coupon attached. Total face amount of bonds/notes. ^ *A separate form must ^e executed for each issue of bonds/notes. 292 REPORT ON THE FINANCES. The above-described bonds/notes have affixed the i^Sorsement of this office to t h e effect that the same have been received in payment of estate (or inheritance) taxes on t h e estate of I t is hereby certified t h a t such stamp or indorsement was affixed in error; that the undersigned is familiar with the circumstances leading to such error, and that none of the above-described bonds/notes has been accepted by this office in payment of estate (or inheritance) taxes on the estate of the above-mentioned.o (Signed) Collector of Internal Revenue. [SEAL.] '. District of EXHIBIT F . TREASURY DEPARTMENT, INTERNAL REVENUE, FORM 835. CERTIFICATE OF ERRONEOUS INDORSEMENT OF REGISTERED BONDS/NOTES. TREASURY DEPARTMENT, INTERNAL R E V E N U E B U R E A U , Office of Collector-of Internal Revenue, District of Date T H E SECRETARY OP THE T R E A S U R Y : Referring to registered as follows: (Use short title of loan.)* Name ofregistered holder. Serial Nos. Denomination. Total face amount of bonds/notes. *A separate form must be executed for each issue of bonds/notes. The above-described bonds/notes have affixed the i i ^ £ e m e n t ^^ *^^® office to the effect that the same have been received in payment of estate (or inheritance) taxes on the estate of '. I t is hereby certified that such stamp or indorsement was affixed in error; that the undersigned is familiar with the circumstances leading to such error, and that notwithstanding any assignment to " T h e Secretary of t h e Treasury for redemption in payment of estate (or inheritance) t a x e s " which may appear thereon, none of the abovedescribed bonds/notes has been accepted by this office in payment of estate (or inheritance) taxes on the estate of the above-mentioned. (Signed) :. Collector of Internal Revenue. [SBAL.] District of 293 SECEETAEY OF THE TEEASURY. EXHIBIT G . (Face,) Group as Paid Checks. Second Sort Symbol 17209-3, First Sort General Ledger Section, TREASURY DEPARTMENT, TREASURER'S OFFICE. Division of General Accounts. DEBIT V O U C H E R . FORM N-2. B O N D S / N O T E S R E T U R N E D TO COLLECTOR OP INTERNAL R E V E N U E AS UNACCEPTABLE. , 19...of (Name of Federal Reserve Bank or branch.) Debit has been made this day in transcript of Treasurer's general account for coupon bonds/notes deposited by t h e Collector of Internal Revenue on account of payment of estate (or inheritance) taxes, and returned (or an equivalent amount of bonds/notes of the same issue delivered) to the Collector as not acceptable, as per receipt on reverse hereof, in the amount of $ Cashier. NOTE.—Forward with transcript in support of entry. (Reverse.) Received , 19 , from (Federal Reserve Bank or branch.) coupon bonds or notes as described below, the amount of which, plus accrued interest . as stated, Avas included in "^certificate of deposit No , issued by said b a n k under date of , 1 9 . . . . , in the amount of $ BONUS OR NOTES Loan, (Use short title,) . Serial Nos. Denomination, RECEIVED. Par value. Accrued interest. Total. »• Total $ *A separate voucher to be executed covering each certificate of deposit. . . . . District of Collector of Internal Revenue. 294 REPORT O N THE EXHIBIT FINANCES. H. P E R I O D S D U R I N G W H I C H T R A N S F E R B O O K S A R E CLOSED POR THE VARIOUS I S S U E S OP L I B E R T Y B O N D S AND VICTORY N O T E S R E C E I V A B L E POR E S T A T E OR I N H E R I T A N C E TAXES. Closed periods. Short title. Title of bonds/notes. From To openclose of ing of business. business. First Liberty Loan converted 4J per cent bonds of 1932-47 First 4J's .. . /May 15 First Liberty Loan second converted 4iper ceiit bonds of 1932-47.. First Second 4i's.. \Nov. 15 /Apr. 15 Second 4^'s Second Liberty Loan converted I j per cent bonds of 1927-42 \Oct, 15 /Feb, 15 Third Liberty Loan 4^ per cent bonds of 1928 . . . Third 4i's . \Aug, 15 /Mar, 15 Fourth 4J's Fourth Liberty Loan 4^ per cent bonds of 1933-38 ... \Sept, 15 May 15 Nov, 15 and from Victory Liberty Loan 4f per cent convertible gold notes of 1922-23. Victory 4^'s close of business Apr, 20, 1923, June Dec, May Nov, Mar. Sept. Apr. Oct. June Dec. 16 16 16 16 16 16 16 16 16 16 NOTE,—If the closing date falls on a Sunday or legal holiday the transfer books will close on the preceding day; if the opening date falls on Sunday or legal holiday the books will open on the following day. EXHIBIT I. 19.. (Date.) SECRETARY OP T H E TREASURY, Division of Loans and - Currency, Washington, D . C : First four and one-quarters, First Second four and one-quarters, inscribed Stop interest) Second four and one-quarters, (Name of registered owner.) on registered' Third four and one-quarters. Fourth four and one-quarters, [victory four and three-quarters, , this day received late of ... ., aggregate face v a l u e . . . (Post Office Address.) (Total par value of bonds/iiotes.) for estate (or inheritance), taxes... Bonds,(notes) bear.serial.numbers.. " Collector. (Bonds/notes of only one owner and of one issue in one advice.) [Sample of above telegram.] . SECRETARY OP T H E GmcAGO, May 14, 1921. TREASURY, Division of Loans and Currency, . Washington, D . C : Stop interest on registered First second four and one-quarters inscribed John Doe, late of Eighty-One Main Street, JonesviHe, Illinois, aggregate face value four thousand four hundred fifty dollars tliis day received for estate taxes. Bonds bear serial numbers nine thousand six fifty one, two, three, .and four of one thousand dollars each seven hundred one thousand three thirty seven, eight, nine and forty of one hundred dollars each, and two million nine hundred thousand and six of fifty dollars. RICHARD R O E , Collector. 295 SECEETAEY OF T H E TEEASTJRY. E X H I B I T J. TREASURY DEPARTMENT, INTERNAL REVENUE. FORM 762 (Revised). SCHEDULE OP REGISTERED B O N D S / N O T E S R E C E I V E D BY COLLECTOR IN PAYMENT OP ESTATE (OR INHERITANCE) T A X E S AND TRANSMITTED TO THE SECRETARY OP THE TREASURY, DIVISION OP LOANS AND CURRENCY. ^ ^ ..,19.... Schedule of United States registered bonds/notes LibertyLoan per cent, dated ,19 , due 19 , received b y ,• collector of internal revenue of the district of , in payment of estate (or inheritance) taxes on the estate of , and transmitted on the above date to the Secretary of the Treasury, Division of Loans and Currency. (Signed) Collector. (Use separate schedule for each ISSUE of bonds/notes . Enter each bond/note of such issue separately.) Serial No. Name of registered owner. Date of death of registered owner. Total (amount Date ac' for which ac- cepted by Face value. Accrued interest. cepted for collector. taxes). • . r" EXHIBIT K . TREASURY DEPARTMENT, LOANS AND CURRENCY. F O R M L . & C. 122, : •-• • .- .. , . •-<•:• ; TREASURY DEPARTMENT, ; OPPICE OP THE SECRETARY, DIVISION OP LOANS AND CURRENCY, . Washington, The - ,19 , • , ' T R E A S U R E R OP THE U N I T E D STATES. SIR: YOU are advised that the attached b o n d . . / n o t e . , registered in the name of received b y the collector of internal revenue, district of , in payment of estate or inheritance taxes on the. estate of said registered owner, have been examined and found to be duly assigned to the Secretary of the Treasury for redemption in payment of estate (or inheritarice) taxes, and to be receivable in payment of such taxes at the values shown i n the following table: Serial No. Description of issue. Face value. Accrued interest. Total value for payment of tax. •• • 1 (Bonds/notes of only one owner on each form. Each bond/note must be entered separately.) Total Respectfully, Chief, Division of Loans and Currency. 298 REPORT ON T H E FINANCES. EXHIBIT 54. [Department Circular No, 239, Loans and Currency,] VICTORY L I B E R T Y LOAN SUBSCRIPTIONS I N D E F A U L T . TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, Washington, May 11, 1921. Pursuant to the provisions of Treasury Department Circular No. 138, dated April 21, 1919, any and all installment payments made to the. Treasury Department or to a Federal Reserve Bank upon subscriptions to 4 | per cent Convertible Gold Notes of 1922-1923 or 3f per cent Convertible Gold Notes of 1922-1923 of the Victory Liberty Loan filed with an official agency designated in said circular, upon which notes have been allotted, and upon which ohe or more of the subsequent installment payments due pursuant to such circular and allotment have not been paid, are hereby declared to be forfeited to the United States; and such subscriptions and all right and interest in the notes allotted thereon are hereby declared to be forfeited because of the failure to make payments when and as required by said circular. Pursuant to the provisions of said Treasurv Department Circular No. 138, dated April 21., 1919, and the Regulations dated April 21,, 1919, defining special arrangements for subscriptions to 4 | per cent notes of the victory Liberty Loan from persons in the military or naval forces of the United States, any and all installment payments Iriade by reservations of pay or checkages against accounts upon subscriptions to 4 i per cent Convertible Gold Notes of 1922-1923 of the Victory Liberty Loan filed by persons in the military or naval forces of the United States in accorclance with such regulations, upon which notes have been allotted, and upon which one or more of the subsequent installment paynaents due pursuant to such regulations and subscription have not been paid, are hereby declared to be forfeited to the United States; and such subscriptions and all right and interest in the notes allotted thereon are hereby declared to be forfeited because of the failure to make payments when and as required by such regulations: Provided, however. That no forfeiture shall occur hereunder in respect to subscriptions on which checkages or reservations have been terminated or reduced pursuant to such regulations, except for failure to make payments when and as required by such regulations and reduced subscription. Installment payments hereby forfeited shall be credited to the general account of the Treasurer of the United States (if not already credited) as '^Forfeited Victory Liberty Loan installment payments,'' and shall be covered into the Treasury to the credit of '^Miscellaneous Receipts.'' Federal Reserve Banks will attach to every transcript showing such credits a schedule giving with respect to each such subscription the name of the subscriber, the amount of notes allotted, and the amount of the payment or payments received against the subscription and therewith credited. If such installment payments have already been credited to the general account of the Treasurer of the United States, Federal Reserve Banks will forthwith send to the Treasurer a like sche.dule to accompany the transcript on which such credits appeared, identifying such transcript by date. Upon 297 SECRETARY OE THE TREASURY. receipt of all such forfeited installment payments against any such subscription, the allotment will be reduced accordingly by the face amount of the forfeited subscription. The Treasury Department or Federal Reserve Bank, as the case may be, with which a subscription has been filed on which any installment payment is forfeited pursuant hereto, will advise the subscriber of the forfeiture by registered mail at the last known address of such subscriber. The Treasury Department will arrange, through the War Department or Navy Department, as the case may be, to advise any person in the military or naval forces of the United States, who subscribed pursuant to the above-described regulations, of any forfeiture'hereunder, by registered mail at the last known address of such subscriber. A. W. MELLON, Secretary of tlie Treasury. EXHIBIT 55. [Department Circular No. 215. Loans and Currency.] UNITED STATES OF AMERICA. . TREASURY SAVINGS SECURITIES, SJSRIES OF 1921. TREASURY DEPARTMENT, O F F I C E OF THE SECRETARY, Washington, D. C, December 15, 1920. OFFERING OF UNITED STATES TREASURY SAVINGS SECURITIES, SERIES OF 1921. j 1. Under authority of Section 6 of the act of Congress approved September 24, 1917, as amended and supplemented, the Secretary of the Treasury offers for sale to the people of the jUnited States, during the calendar year 1921, Treasury Savings Seciurities for 1921, in the form of a new series of United States War Savings Certificates, in two issues, as follows: (a) War Savings Certificates, Series of 1921, payments for or on account of which will be evidenced by War Savings Certificate Stamps, Series of 1921, affixed thereto, in the denomination of $5 (maturity value), hereinafter icalled War Savings Stanips', Series of 1921; and (J) TMasiiry Savings Certificates, Series of 1921, in registered form, in the denominations of $25, $100, and $1,000 (maturity value), payments for or on account of which may be evidenced by Treasury Savings Stamps affixed to Treasury Savings Cards, as hereinafter provided. War Savings Certificates, Series of 1921, and Treasury Savings Certificates, Serie|s of 1921, are both included in the Series of 1921 of United States War Savings Certificates. I t shall not be lawful for any one personjat any one time to hold United States War Savings Certificates, Series of 1921 (of whatever issue or denomination) to an aggregate amount exceeding $1,000 (maturity value). The sum of United States War Savings Certificates of all series and issues outstanding shall n'ot at any one time exceed in the aggregate $4,000,000,000 (maturity value). The two issues comprising the Series of 1921 are hereinafter described in further detail. 298 REPORT ON T H E FINANCES. , DEFINITIONS—TREASURY SAVINGS SECURITIES, 1921. Thrift Stamps are sold at 25 cents each, do not bear interest, and should be affixed to a Thrift Card, which may be obtained without cost, and which will hold 16 Thrift Stamps. When the card is filled it will be accepted as a payment of $4 toward the purchase price of a War Savings Stamp. Treasury Savings Stamps are offered for sale at $1 each. * They do not bear interest and can not be registered, but should be affixed to a Treasury Savings Card, which is issued without charge and holds 20 stamps. Upori surrender of a Treasury Savings Card, each Treas-ury Savings Stamp then affixed thereto will be accepted as a payment of $1 on the purchase price of a War Savings Stamp or Treasury Savings Certificate, under the rules and regulations hereinafter provided. War Savings Stamps, Series of 1921, issued to evidence payment on a War Savings Certificate, Series of 1921, are sold in January, 1921, at $4.12, each. The price increases 1 cent each month during the calendar year. War Savings Stamps must be affixed to a War Savings Certificate, Series of 1921, which will mature January 1, 1926, when $5 will be paid b y the Government for each War Savings Starop, Series of 1921, then affixed thereto. Each W a r Savings Certificate will hold 20 War Savings Stamps, and becomes an obligation of the United States when, and only when, one or more such stamps shall be affixed thereto. War Savings Certificates are not transferable b u t are redeemable before maturity at post offices at the rates stated on the certificates. They m a y be registered at post offices, and may be exchanged for Treasury Savings Certificates, Series of 1921, which mature January 1, 1926, are not transferable and are issued only in registered form, in denominations of $25, $100, and $1,000 (maturity value), fully registered in the name of the owner at the Treasury Department. Treasury Savings Certificates are sold at prices which correspond to the cost of a like maturity value of War Savings Stamps; for a $25 certificate the price is the same as for 5 such stamps, for a $100 certificate, 20 stamps, and for a $1,000 certificate, 200 stamps. A G E N C I E S F O R T H E S A L E O F T R E A S U R Y SAVINGS SECURITIES. 2. Stamps.—War Savings Stamps, Series of 1921, Thrift Stamps, and Treasury Savings Stamps may be purchased during the calendar ear 1921, at the respective prices set forth herein, at the Treasury department, Washington, at post offices. Federal Reserve Banks, and incorporated banks and trust companies and others which are duly qualined as agents for the sale of Treasury Savings Securities, Series of 1921, and at authorized sales stations. War Savings Certificates, Thrift Cards, and Treasury Savings Cards necessary for affixing the appropriate stamps m a y be obtained without cost at the time of purchase of the respective stamps. 3. Treasury Savings Certificates.—Tresisuvj Savings Certificates, Series of 1921, in the denominations of $25 and $100 (maturity value), may be purchased during the calendar year 1921, at the prices here- J SECRETARY OF THE TREASURY. 299 inafter mentioned, at post offices of the first and second class, and such other post offices as the Postmaster General may from time to time designate for that purpose; and Treasury Savings Certificates, Series of 1921, in denominations of $25, $100, and $1,000 (maturity value), may be purchased during the calendar year 1921, at the prices hereinafter mentioned, at the Treasury Department, Washington, the Federal Reserve Banks, and incorporated banks and trust companies and others which are duly qualified as agents for the sale of Treasury Savings Certificates, Series of 1921. WAR SAVINGS CERTIFICATES, SERIES OF 1921. 4. Description.—A War Savings Certificate, Series of 1921; is in the form of a folder, with spaces thereon for affixing 20 War Savings Stamps, Series of 1921, and will be an obligation of the United States when, and only when, one or more War Savings Stamps, Series of 1921, shall be afiixed thereto. Each War Savings Stamp, Series of 1921, affixed to a War Savings Certificate will have a maturity value •of $5 on January 1, 1926, which will accordingly give, each such certificate, when bearing its full complement of 20 such stamps, a maturity value of $100 on said date. No War Savings Certificate, Series of 1921, will be issued unless at the same time one or more War Savings Stamps, Series of 1921, shall be purchased and affixed thereto, but no additional charge will be made for the War Savings Certificate itself. The name of the owner of each War Savings Certificate must be written upon such certificate at the time of the issue thereof. War Savings Certificates, Series of 1921, will be dated January 3, 1921, arid will bear the facsimile signature of the present Secretary of the Treasury. 5. Issue prices.—War Savings Stamps, Series of 1921, will be issued in 1921 at the following prices: January. February March... April $4.12 4,13 4.14 4.15 | May June July I August $4.16 4.17 4.18 4.19 September. October. November. December . . . . $4.20 4.21 4, 22 4, 23 The average issue price above fixed for the year 1921 with interest :at 4 per cent per annum compounded quarterly for the average period to maturity will amount to $5 on January°l, 1926. 6, Tax exemptions.—WsiT Savings Certificates, Series of 1921, shall he exempt, both as to principal and interest, from all taxation now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority, except (a) estate or inheritance taxes, .and (b) graduated additional income taxes, commonly known as surtaxes, and excess-profits and war-profits taxes, now or hereafter imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corporations. The interest on an amount of bonds and certificates authorized by said act approved September 24, 1917, and amendments thereto, the principal of which does not exceed in the aggregate $5,000, owned by any individual, partnership, association, or corporation, shall be exempt from the taxes provided for in clause (6) above. 7. Affixing stamps to certificates.—WsiT Savings Stamps of the Series of 1918, of the Series of 1919, or of the Series of 1920, shall not be 300 REPORT ON THE FINANCES. affixed to War Savings Certificates of the Series of 1921, and W a r Savings Starops of the Series of 1921 shall not be affixed to W a r Savings Certificates of the Series of 1918, of the Series of 1919, or of the Series of 1920. War Savings Stamps of one series affixed to War Savings Certificates of another series will not add to the value thereof. 8. Thrift Cards and Thrift Stamps.—Payments on account of War Savings Stamps, Series of 1921, may also be evidenced by United States Thrift Stamps (hereinafter called Thrift Stamps), issued at any time since December 3, 1917, having a face value of 25 cents each but bearing no interest. Thrift Stamps, however, must not be affixed to War Savings Certificates or Treasury Savings Cards, but only to Thrift Cards, which may be obtained without cost. Thrift Stamps as such are not directly redeemable in cash, but each Thrift Card will have spaces for 16 such Thrift Stamps, and a Thrift Card, when bearing its full complement of 16 stamps, may be exchanged at a )ost office, or other authorized agency, during the calendar year 1921, or a War Savings Stamp, Series of 1921, provided that upon such exchange the owner of such Thrift Card shall pay the difference between $4 and the current issue price of War Savings Stamps, Series of 1921, during the month in which such exchange is made, as,shown by the table set forth in paragraph 5 hereof. The Secretary of the Treasury will make provision for the exchange of Thrift Stamps after December 31, 1921, into War Savings Stamps, Series of 19.21, upon payment of the additional amount then required, or into some other series, as he may determine, or will otherwise protect the interest of holders of Thrift Stamps. 9. Payment at maturity.—Owners of War Savings Certificates, Series of 1921, will be entitled to receive on January 1, 1926, at the Treasury Department in Washington, or at a money-order post office (but only at the post office where registered in the case of a registered certificate), upon surrender of such certificates and upon compliance with all otlier provisions thereof, $5 in respect of each W ar Savings Stamp, Series of 1921, then affixed thereto, but no post office shall be required to make any such payment until 10 days after receiving written demand therefor. 10. Payment prior to maturity.—The owner of a War Savings Certificate, Series of 1921, at his option, will be entitled to receive, at any time after January 10, 1921, and priorto January 1, 1926, at a moneyorder post office (but only at the post office where registered in the case of a registered certificate), upon surrender of his certificate and upon compliance with all other provisions thereof, in respect of each War Savings Stamp, Series of 1921, then affixed to such certificate, the lesser amount indicated in the following table, but no post office shall be required to make any such payment until 10 days after receiving written demand therefor, and such certificate must be surrendered for payment within 60 days after such demand, otherwise the demand will be deemed to be waived and a new demand will be required before payment. f 301 SECRETARY OF THE TREASURY. TABLE SHOWING HOW WAR SAVINGS STAMPS, SERIES OF 1921, INCREASE IN VALUE. Month. January February. March April May . June July August.. ^ September October November December t : J a n u a r y 1,1926 1921 1922 1923 1924 1925 $4.12 4.13 4,^14 4,15 4,16 4.17 4.18 4,19 4.20 4.21 4.22 4,23 $4,24 4,25 , 4,26 4,27 4.28 4.29 4.30 4,31 4,32 4.33 4.34 4,35 S4.36 4,37 4.38 4,39 4.40 4.41 4.42 .4.43 4,44 4.45 4.46 4.47 $4.48 4. 49 4.50 4,51 4,52 4.53 4.54 4.55 4.56 4.57 4.58 4.59 $4.60 4.61 4.'62 4.63 4.64 4.65 4.66 4.67 4.68 4.69 4.70 4.71 1 t 5.00 11. Registration.—War Savings Certificates, Series of 1921, may be registered without cost to the owner at any post office of the first, second, or third class, or at certain specially authorized post offices of the fourth class, subject to such regulations as the Postmaster General may from time to time prescribe, and payment in respect of any certificate so registered will be made only at the post office where registered. Unless registered, the United States will not be liable if payment in respect of any certificate or certificates be made to a person not the rightful owner thereof. The Postmaster General may, by regulation, provide for the transmission of registered certificates by mail to the post office of registration for payment, and the return of proceeds by money order, in cases in which it appears that the owner IS unable to secure payment personally, or by a representative, pursuant to regulations therefor. . 12. Exchange for Treasury Savings Certificates.—War Savings Certificates, Series of 1921, bearing War Savings Stamps, Series of 1921, to an equivalent maturity value, may be exchanged for Treasury Savings Certificates, Series of 1921, in the denominations of $25, $100) and $1,000 (maturity value) inscribed in°the same name, under the rules and regulations hereinafter provided. Treasury Savings Certificates are registered on the books of the Treasury Department, Washington. Holders of War Savings Certificates, Series of 1921, bearing an appropriate number of War Savings Stamps, Series of 1921, are accordingly urged to exchange such certificates ior Treasury Savings Certificates, Series of 1921, instead of presenting them simply for registration at post offices. 13. Certificates not transferable.—War Savings Certificates, Series of 1921, are not transferable and will be payable only to the respective owners named thereon, except in the case of the death or disability of any such owner. In case of the death or disability of the owner, such certificates will be payable in accordance with regulations prescribed by the Secretary of the Treasury. 14. Rights of holders of certificates.—^All the provisions of Treasury Department Circular No. 108, dated January 21, 1918, as amended and supplemented, further defining rights of holders of War Savings Certificates, apply to and govern rights of holders of War Savings 302 ^ REPORT ON THE FINANCES. Certificates, Series of 1921, except as herein expressly modified with respect to War Savings Certificates, Series of 1921, to wit: (a) In paragraph I thereof, the maturity date specified shall read '^ January 1, 1926.^' (6) In paragraph VI thereof, the $1,000 limitation on the holdings of a single person will refer to a maturity value of $1,000 of certificates of the Series of 1921, of whatever issue or denomination, without reference to any holdings of certificates of any other series. (c) In paragraph X I there shall be inserted in the receipt thereby required to be signed after the words ^^War Savings Certificates" the words ^'of any one series, of whatever issue or denomination." (d) I n paragraph XIV the aggregate amount of certificates received and held as therein provided will refer to the aggregate amount of certificates of the Series of 1921 without.reference to any holdings of certificates of any other series. TREASURY SAVINGS CERTIFICATES, SERIES OF 1921. 15. Description of certificates.—Treasury Savings Certificates, Series of 1921, will be issued only in registered form, in denominations bf $25, $100, and $1,000 (maturity value) and shall bear the name of .the owner thereof, which shall be inscribed thereon by the issuing agent at the time of the issue thereof. The issuing agent will also be expected to fill in the date of issue on the blank provided for t h a t purpose on the back of the certificate. At the time of issue of each such certificate the registration stub attached thereto shall be executed in the same manner by the issuing agent, and shall be detached and forwarded in the manner hereinafter directed for transmission to the Treasury Department at Washington-. The registration stubs will remairi at the Treasury Department at Washington and will constitute the basis for the Department's record of the registered ownership of the certificates. In addition to the registration stub above described, each certificate will be provided with an additional or duplicate stub, w ^ c h shall be executed at the same time and in the same manner as the original registration stub and retained by issuing post offices in such manner as the Postmaster General shall direct, and by Federal Reserve Banks and other issuing agents subject to the order of the Secretary of the Treasury. The certificates will not be transferable, and will be payable only to the owner named thereon except in case of death or disability of the owner and in such case will be payable as provided.in regulations prescribed by the Secretary of the Treasury. The certificates will not be validunless the owner's name is duly inscribed thereon by an authorized agent at the time of the issue thereof. Treasury Savirigs Certificates, Series of 1921, will be dated January 3, 1921, and will bear the facsimile signature of the present Secretary of the Treasury. 303 SEOBETABY OF THB TREASUBY. 16. Issue prices.—Treasury Savings Certificates, Series of 1921, will be issued in 1921 at the following prices: Month of issue, 1921. January... February.. March.-.... April May.. June July........ August.... . September. October... November. December. Denomination of $25 (maturity value). Denomination of $100 (maturity value). $20,60 20.65 20,70 20,75 20;80 20.85 20.90 20.95 21,00 21.05 21.10 '21.15 $82.40 82.60 82.80 83.0083.20 83.40 83.60 83.80 84.00 84.20 84.40 84.60 Denomination of $1,000 (maturity value). $824.00 826.00 828.00 830.00 832.00 834.00 836.00 838.00 840.00 842.00 844.00 846.00 The average issue price's above fixed for the year 1921, with interest at 4 per cent per annum compounded quarterly for the average period to maturity, will amount to $25, $100, and $1,00(), respectively? on January 1, 1926. 17. Tax exemption.—Trea.sury Savings Certificates, Series of 1921, shall be exempt, both as to principal and interest, from all taxation now or hereafter imposed by the.United States, any State, or any of the possessions ol the United States, or by any local taxing authority, except {a) estate or inheritance taxes, and (b) graduated additional inconie taxes, commonly known as surtaxes, and excess-profits and war-profits taxes, now or hereafter imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corporations. The interest on an amount of bonds and certificates authorized by said act approved September 24, 1917, and amendments thereto, the principal of which does not exceed in the aggregate $5,000, owned by any individual, partnership, association, or corporation, shall be exempt from the taxes provided for in clause (b) above. • 18. Issue in exchange for unregistered War Savings Certificates, Series of 1921.—One or more War Savings Certificates, Series of 192 1, which have not been registered and which have an aggregate maturit y value of $25, or some multiple thereof, no more, no less, may be received in exchange for one or more Treasury Savings Certificates, Series of 1921, of an equivalent aggregate maturity value, in t h e appropriate denominations of $25 or $100 (maturity value) inscribed in the same name as the certificates presented in exchange, upon presentation and surrender to any post office authorized to issue and sell Treasury Savings Certificates, Series of 1921, or to any other agent for the sale of Treasury Savings Certificates, Series of 1921; and 10 such War Savings Certificates, each bearing the full complement of 20 War Savings Stamps, Series of 1921, may in Uke manner be received in exchange for a Treasury Savings Certificate, Series of 1921, in the denomination of $1,000 (maturity value) ins'cribed in the same name as the certificates presented in exchange, upon presentation and surrender to any authorized agent for the sale of Treasury Savings Certificates, Series of 1921, in the denomination" of $1,000 (maturity value). 304 • liiEPORT ON THE FINANCES. 19. Issue in exchange for registered War Savings Certifi,cates, Series of 1921.—One or more War Savings Certificates, Series of 1921, which have been registered and which have an aggregate maturity value of $25, or some multiple thereof, no more, no less, may in like manrier be received in exchange for one or more Treasury Savings Certificates, Series of'1921, of an equivalent aggregate maturity value, in the appropriate denominations of $25 or $100 (maturity value) inscribed in the same name as such registered War Savings Certificates, when presented for that purpose by the registered owner to the post office of registration, provided that such post office is authorized to issue and sell Treasury Savings Certificates, Series of 1921. 20. Other regulations governing exchanges.—No previous demand for payment of War Savings Certificates, Series of 1921, surrendered in exchange for Treasury Savings Certificates, Series of 1921, pursuant to paragraphs 18 and 19 hereof, will be required, and the exchange will be made in each case without payment to or by the United States. The receipt form on such War Savings Certificates, Series of 1921, so presented in exchange for Treasury Savings Certificates, Series of 1921, must be duly executed by the owner thereof, and appropriate notation on the War Savings Certificates so received in exchange shall be made by the issuing agent to the effect that such certificates have been received in exchange for Treasury Savings Certificates, Series, of 1921. War Savings Certificates, Series of 1918, Series of 1919, and Series of 1920, Treasury vSavings Certificates of the Series of 1918, the Series of 1919, and the Series of 1920, detached Treasury Savings vStamps, detached War Savings Stamps, War Savings Cerficates. Series pf 1921, having an aggregate maturity value not $25 or some multiple thereof. Thrift Cards with Thrift vStamps affixed, or detached Thrift vStamps, will not be received in exchange or payment for Treasury Savings Certificates, Series of 1921. Treasury Savings Stamps affixed to Treasury Savings Cards will be accepted on the purchase price of Treasury Savings Certificates, as provided in paragraph 26 hereof. Treasury Savings Certificates, Series of 1921, may be exchanged at the Treasury Department, Washington (but not at the Federal Reserve Banks, post offices, or other authorized agencies), for Treasury Savings Certificates of the same series inscribed in the same name in other authorized denoininations to the same aggregate maturity value. 21. Payment at maturity.—Owners of Treasury Savings Certificates, Series of 1921, will bie entitled to receive on January 1, 1926, the respective face amounts as stated thereon. On and after January 1, 1926, payment of the certificates will be made upon presentation and surrender thereof by mail or otherwise at the Office of the Secretary of the Treasiiry, Division of Loans and Currency, Washington, and upon compliance with all other provisions thereof, provided the form of demand for payment appearing on the back thereof shall be properly signed by the owner in the presence of, and duly certified by, a United States postmaster (who should also affix the official postmark of his office), an executive officer of an incorporated bank or trust company (who should also affix the corporate seal of the bank or trust company), or any other person duly designated by the Secretary of the Treasury for the purpose. In case of the death or disability of the owner, a special form of demand for payment prescribed by the Secretary of the Treasury must be duly executed. SECRETARY OF T H E 305 TREASURY. 22. Payment prior to maturity.—The owner of a Treasury Savings Certificate, Series of 1921, at his option, will be entitled to receive, prior to Jariuary 1, 1926, the lesser amount indicated iri the following tables (and in. the table appearing on the back of the certificate) with respect to certificates of the denomination concerned. Payment prior to January 1, 1926, of the amount payable in respect of any. such certificate will be made upon presentation, surrender, and demand made as aforesaid, at the Office of the Secretary of the Treasury, Division of Loans and Currency, Washington, and upon compliance with all other provisions thereof, b u t in no event prior to the second calendar'month following the calendar month in which the certificate is issued to the owner. TABLES SHOWING HOW TREASURY SAVINGS OF 1921, INCREASE DENOMINATION Month. January... February March.. April.. May... June July August September . . October November D'ecember '. IN CERTIFICATES, VALUE. OF $25. 1921 1922 1923 1924 1925 $20. 60 20.65 20.70 20.75 20.80 20.85 20.90 20.95 21.00 21.05 21.10 21.15 $21. 20 21.25 21.30 21.35 21.40 21.45 21.50 21. 55 21.60 21.65 21.70 21.75 $21. 80 • 21. 85 21.90 21.95 22,00 22.05 22,10 22.15 22.20 22.25 22.30 22.35 $22.40 22.45 22.50 22.55 22.60 22.65 22.70 22.75 22.80 22.85 22.90 22.95 $23.00 23.05 23.10 23,15 23.20 23.25 23.30 23.35 23.40 23.45 23.50 23.55 i Januarj'^ 1,1926 25.00 DENOMINATION 1921 Month. $82. 82. 82. 83. 83, January — February... March April May June... July August September. October November.. December.. 84. OF $100. 1922 1923 1924 1925 $84, 80 85,00 85,20 85,40 85,60 85.80 86,00 86,20 86,40 86,60 86,80 87,00 $87, 20 87.40 87.60 87.80 88.00 88.20 88.40 88,60 88,80 89,00 89,20 89.40 $89, 60 89.80 90,00 90,20 90,40 90.60 90,80 91,00 91,20 91,40 91,60 91.80 $92, 00 92,20 92,40 92,60 92.80 93.00 93,20 93.40 93,60 93,80 94,00 94.20 J a n u a r y 1,1926. 100, 00. DENOMINATION Month, 1921 January February-.. March April May........ June July August Septeniber.. October November.. December.. $824, 830, 832. 834. 836. 838, 840. 842. 844, 846, 1922 1923 1924 1925 $848.00 850, 60 852.00. 854,00 856, 00 858, 00 860, 00 862, 00 864, 00 866, 00 . 868, 00 870, 00 $872, 00 874, 00 876, 00 878, 00 880, 00 882. 00884. 00 886, 00 888, 00 890. 00 892, 00 894,00. $896, 00 898, 00 900, 00 902.00 904, 00 906, 00 . 90S, 00 910, 00 912, 00 914, 00 916, 00 918, 00 $920, 00 922,00 924,00 926, 00 928, 00 930, 00 932, 00 934, 00 936. 00 938, 00 940, 00 942, 00 1,000, 00 J a n u a r y 1,1926. 70073—FI 1 9 2 1 - OF $1,000. -20 SERIES 306 REPORT ON THE FINANCES. 23.. Transmission of registration stuhs by post offices.—The original registration stubs detached from Treasury vSavings Certificates, Series of 1921, sold by post offices, shall be attached to the accounts of sales of such certificates rendered to the Third Assistant Postmaster General, Division of Stamps, and forwarded by the Third Assistant Postmaster General to the Secretary of the Treasury, Division of Loans and Currency, Washington, so as to reach the Treasury Department not later than the. month succeeding the month in which the certificate is sold. 24. Transmission of registration stubs by other issuing ageiits.—The original registration stubs detached from Treasury Savings Certificates, Series of 1921, sold by other issuing agents, shall be forwarded to the Federal Reserve Bank froiri which such certificates were obtained, with the monthly accounts of such agents as required by the provisions of Treasury Department Circular No. 216, dated December 15, 1920.. The Federal Reserve Bank receiving such stubs will see that a registration stub is at banc] for each such cer. tificate reported sold and will forward such stubs, together with the original registration stubs detached from all Treasury-vSavings Certificates, Series of 1921, issued and sold by it, to the Secretary of the Treasury, Division of Loans and Currency, Washington, monthly, so as to reach the Treasury Department not later than the month succeeding the month in which the certificate is sold. The original registration stubs detached from Treasury Savings Certificates, Series of 1921, sold by the Treasurer of the United States shall be forwarded to the Office of the Secretary of the Treasury, Division of Loans and Currency, at the end of.each month so as to reach such office not later than the month succeeding the inonth in which the certificate is sold. . 25. Rights of holders of certificates.—The provisions, of Treasury Department Circular No. 108, dated January 21, 1918, as amended and supplemented, further defining rights of holders of War vSavings Certificates, do not apply to or govern the rights of holders of Treasury Sav^ings Certificates, Series of 1921. The provisions of Treasury Department Circular No. 149, dated July 31, 1919, as amended and supplemented, further defining the rights of holders ol Treasury Savings Certificates, will apply to and govern the rights of holders of Treasury Savings Certincates, Series of 1921, except as h e r e b y further modified solely with respect to Treasury Savings Certificates, Series of 1921, to wit: (a) In Paragraph I of Treasury Department Circular No. 149 thematurity date specified shall read ^^ January 1, 1926.'^ UNITED STATES TREASURY SAVINGS STAMPS AND TREASURY SAVINGS CARDS. 26. United States Treasury Savings Stamps (herein sometimes called Treasury Savings Stamps) issued at any time after December 31, 1920, having a face value of $1 each, but bearing no interest, may be purchased at the face value thereof at the Treasury Department, at any Federal Reserve Bank, post office, or authorized agency for the sale of War Savings Cer,tificates or Treasury Savings Certificates, or at authorized sales stations. SECRETARY OF THE TREASURY. 307 Treasury Savings Stamps, when affixed to Treasury Savings Card^,. will be accepted at face value during the calendar year 1921 om account of the purchase price of War Savings Stamps, Series of 1921 ^^ in the denomination of $5, maturity value, or Treasury Savings Cer-^ tificates. Series of 1921, in denominations of $25, $100, or $1,000, maturity value. Treasury Savings Stamps must be affixed to Uniteci States Treasury Savings Cards (which,may be obtained without cost), and must not be affixed to War Savings Certificates or Thrift Cards. Each Treasury Savings Card has space for 20 Treasury Savings Stamps, and upon presentation and surrender of a Treasury Savings Card at a United States post office, or other authorized agency, each Treasury Savings Stamp then affixed thereto-will be accepted as a payment of $1 on account of the purchase price of a War Savings Stamp or Treasury Savings Certificate, Series of 1921; provided that at the same time the holder of the Treasury Savings Card shall pay the difference between the face amount of the Treasury Savings Stamps affixed to the card and the current issue price of the War Savings Stamp or Treasury Savings Certificate during the month in which the purchase is made as shown by the tables appearing in paragraphs 5 and 16 of this circular, respectively. Treasury Savings Stamps are intended primarily for accumulation on Treasury Savings Cards in lots of 20 stamps, on account of the purchase price of a $25 Treasury Savings Certificate. Treasury Savings Stamps can not be registered, do not bear interest, and are not directly redeemable in cash. The Secretary of the Treasury will make provision for exchanges of Treasury Savings Stamps after December 31, 1921, into Treasury Savings Certificates, Series of 1921, upon payment of the additional amount then required, or into some other series, as he may determine, or will otherwise protect the interest of holders of Treasury Savings Stamps. EXCHANGE ISSUES OF TREASURY SAVINGS CERTIFICATES, SERIES OF 1918, 1919, OR 1920. 27. War Savings Certificates of the Series of 1918, 1919, or 1920, after December 31, 1920, may be presented for exchange for Treasury Savings Certificates of the same series, and maturity value, only at the Treasury Department, Washington, and at Federal Reserve Banks, as fiscal agents of the United States, except that if registered War Savings Certificates are presented for such exchange presentation must be through the post office where registered. Such issues of Treasury Savings Certificates of the Series of 1918, 1919, or 1920, in exchange for War Savings Certificates of the same series, are governed by the provisions of Treasury Department Circular No. 217, dated December 15, 1920, to which reference is hereby made. OTHER DETAILS. 28. United States War Savings Certificates, Series of 1921, of whatever issue or denomination, including Treasury Savings Certificates, will not be receivable as security for deposits of public moneys and will not bear the circulation privilege. 308 REPORT ON THE FINANCES. 29. The Secretary of the Treasury may at any time withdraw this circular as a whole, or make from time to time any supplemental or amendatory regulations which shall not modify or impair the terms and conditions of United States War Savings Certificates of the Series of 1921, of whatever issue or denomination, issued in pursuance of said act of September 24, 1917, as amended and supplemented. The Secretary of the Treasury may also at any time withdraw Treasury Savings Certificates, Series of 1921, War Savings Certificates, Series of 1921, War Savings Stamps, Series of 1921, Treasury Savings Stamps or United States Thrift Stamps, or any of them, from sale, refuse to issue or to permit to be issued- any War Savings Certificates, Series of 1921, Treasury Savings Cards or Thrift Cards, and refuse to sell or to permit to be sold any such certificates or stamps to any person, fiirm, corporation, or association. 30. ^The provisions of Treasury Department Circular No. 178, • dated January 15, 1920, as to holdings of United States War Savings Certificates in excess of the legal limit apply to and govern War Savings Certificates and Treasury Savings Certificates; Series of 1921, issued hereunder. 31. Further details may be announced by the Secretary of the Treasury from time to time, information as to which will be promptly furnished to Federal Reserve Banks, to postmasters, and to other agents. D. F. HOUSTON, Secretary of the Treasury. EXHIBIT 56. [Department Circular No, 216. Loans and Currency,] A G E N C I E S FOR THE D I S T R I B U T I O N AND SALE OF SAVINGS SECURITIES DURING 1921. TREASURY TREASURY DEPARTMENT, O F F I C E OF THE SECRETARY, Washington, December 15, 1920. To Federal Reserve Banlcs, all Cash and Collateral Agents for the Sale^ of War Savings Certificates and Treasury Savings, Certificates, Sales . Stations, and others concerned: 1. The provisions of Treasury Department Circular NQ. 172, dated December 10, 1919, as amended and supplemented April 10, 1920, governing agencies for the distribution and sale of War-Savings Certificates and Treasury Savings Certificates, Series of 1920, are hereby extended, subject to the provisions hereof and of Treasury Department Circular No. 215, dated December 15, 1920, to agencies for the distribution and sale during the calendar year 1921 of WarSavings Certificates, Series of 1921, War-Savings Certificate Stamps, Series of 1921, Treasury Savings Certificates, Series of 1921, Treasury Savings Cards and Treasury Savings Stamps, issued pursuant to said Treasury Department Circular No. 215, dated December 15, 1920, and United States Thrift Cards and Thrift Stamps issued ^at any time on or after December 3, 1917. United States War-Savings Certificates, payments for or on account of which are evidenced by War-Savings Certificate Stamps affixed thereto, are called in this SECRETARY OF T H E TREASURY. 309 circular War-Savings Certificates, and United States Treasury Savings Certificates, in denominations of $25, $100, and $1,000 (maturity value), are called in this circular Treasury Savings Certificates. 2. The only authorized agents for the issue or sale during the calendar year 1921 of Treasury Savings Certificates, War-Savings Cer-. tificates or Stamps, Treasury Savings Cards, Treasury Savings Stamps, Thrift Cards or Thrift Stamps, herein sometimes called Treasury Savings Securities (in addition to post offices. Federal Reserve Banks, duly designated officers of the United States, and the Treasury Department, Washington), shallbe (a) cash agents and (b) collateral agents,- acting in accordance with the provisions of this circular. Upon application through the Federal Reserve Banks, other persons than incorporated banks and trust companies may be designated hereunder by the Secretary of the Treasury in special cases as' cash agents or collateral agents for the issue and sale of Treasury Savings Securities during 1921, subject in all other respects and in the same manner as other cash or collateral agents to the provisions hereof and of Treasury Department Circular No. 215, dated December 15, 1920. 3. The provisions of Treasury Department Circular No. 181, dated February 10, 1920, governing sales stations for the distribution and sale of War-Savings Certificates and Stamps, Series of 1920, and Thrift Stamps during the calendar year 1920, are hereby extended, subject to the provisions of said Treasury Department Circular No. 215, dated December 15, 1920, to sales stations for the sale during the calendar year 1921 of War-Savings Certificate Stamps, Series of 1921, Treasury Savings Stamps, and Thrift Stamps, and the issue of WarSavings Certificates, Series of 1921, Treasury Savings Cards, and Thrift Cards during the calendar year 1921. 4. All provisions of said Treasury Department Circulars No. 172, as amended and supplemented, and No. 181, with reference to WarSavings Certificates and Stamps'and Treasury Savings Certificates, Series of 1.920, issued under Treasury Department Circular No. 170, dated December 10, 1919, and Thrift Stamps and Thrift Cards during 1920, shall, mutatis mutandis, apply with equal force and effect to War-Savings Certificates and Stamps and Treasury Savings Certificates, Series of 1921, issued under said Treasury Department Circular No. 215, dated December 15, 1920, and to Thrift Stamps and Thrift Cards during 1921, subject to the provisions thereof. Treasury Savings Stamps and Treasury Savings Cards shall, for the purposes of this circular, be treated like Tlirift Stamps and Thrift Cards, except that Treasury Savings Stamps shall be taken at the face value of $1 each and shall, with Treasury Savings Cards, in other respects be subject to the provisions of said Treasury Department Circular No. 15, dated December 15, 1920. 5. Cash agents already duly qualified to a sufficient amount for the sale of War-Savings Certificates and Stamps and Treasury Savings Certificates, .Series of. 1920, may act as cash agents for the sale of Treasury Savings Securities, Series of. 1921, without further application; and they will, by the receipt or sale of Treasury Savings Certificates, Series of 1921, or War-Savings Certificates or Stamps, Series of 1921, or of Treasury Savings Stamps or Thrift Stamps after December 31, 1920, be conclusively presumed to have assented to all the terms and provisions of this circular. Collateral agents. 310 REPORT ON T H E FINANCES. already duly qualified to a sufficient amount for the sale of WarSavings Certincates and Stamps and Treasury Savings Certificates, Series of 1920, will not be required to file anew formal applications or pledge agreements and may act as collateral agents for the sale of Treasury Savings Securities, Series of 1921, without further application; and they will, by the receipt or sale of Treasury Savings Certificates, Series of 1921, or War-Savings Certificates or Stamps, Series of 1921, or of Treasury Savings Stamps or Thrift Stamps after December 31, 1920, be conclusively presumed to have assented to all the terms and provisions of this circular and to the retention of any collateral security pledged or to be pledged as collateral security hereunder. Sales stations already designated for the sale of WarSavings Certificate Stamps, Series of 1920, and Thrift Stamps, and the issue of War-Savings Certificates and Thrift Cards, during the calendar year 1920, may without further designation continue as sales stations for the distribution and sale of War-Savings Certificates and Stamps, Series of 1921, and Treasury Savings Stamps, Treasury Savings Cards, Thrift Stamps and Thrift Cards, during the calendar yeaf 1921; and all persons acting as such sales stations during the calendar year 1921, will by the receipt or sale of War-Savings Certificates or Stamps, Series of 1921, or of Treasury Savings Stamps or Thrift Stamps after December 31, 1920, be coriclusively presumed to have assented to all the terms and provisions of this circular. REVISED FORMS, 1921. 6. Forms L. & C. 337, L. & C. 354, L. & C. 355, L. & C. 356, L. & C. 357 and L. & C. 358, appended to Department Circular No. 172> dated December 10, 1919, and Form L. & C. 382, appended to Department Circular No. 181, dated February 10, 1920, have been revised in order to cover Treasury Savings Securities during the calendar year 1921. Copies of the revised 1921 forms, which should be used , for any new applications and other appropriate operations hereunder, are appended hereto for the information and guidance of all concerned. OTHER DETAILS. 7. Copies of all forms specified in this circular, or of substantially similar forms, may be obtained, upon application, from the Federal Reserve Banks. Copies of this circular and of all Treasury Department circulars referred to herein, may be obtained, upon application, from the Secretary of the Treasury, Division of Loans and Currency, Washington, or from any Federal Reserve Bank. 8. The Secretary of the Treasury may. at any time withdraw this circular as a whole, or amend from time to time any of the provisions hereof, terminate any agency or sales station created or existing hereunder, revoke any or all appointments of agents, withdraw Treasury Saf^ings Certificates, War-Savings Certificate Stamps, Treasury Savings Stamps, or Thrift Stamps from sale, refuse to issue or to permit to be issued any such certificates or stamps, and refuse to sell or to permit to be sold any such certificates or stamps t o any person, firm, association, or corporation. 9. The Secretary of the Treasury may make from time to time any supplemental or amendatory regulations which shall not modify or impair the terms and conditions of Treasury Savings Certificates, SECRETARY OF THE TREASURY. - 311 War-Savings Certificates, War-Savings Certificate Stamps, Treasury Savings Stamps, or Thrift Stamps issued in pursuance of the act approved September 24, 1917, as amended and supplemented, and may amend or supplement this circular from time to time by Treasury Department Circular mailed to the Federal Reserve Banks and generally to bariks and trust companies incorporated under the laws of the United States or of any State. 10. Further details may be announced by the Secretary of the Treasury from time to time, information as to which will be promptly furnished to Federal Reserve Banks and to agents. D. F . HOUSTON, Secretary of the Treasury. T R E A S U R Y DEPARTMENT. LOANS AND CURRENCY. Form L. & C. 337 (Revised, 192n. .,192..-. To the FEDERAL RESERVE BANK OP , As Fiscal Agent of the United States: The undersigned hereby applies for appointment as a cash agent for the sale of Treasury Savings Certificates, Series of 1921, War Savings Certificate Stamps, Series of 1921, Treasmy Savings Stamps, and Thrift Stamps, and the issue of War Savings Certificates, Seiies pf 1921, Treasury Savings Cards, and Thrift Cards, in accordance with the provisions of Treasury Department Circulars Nos. 215 and 216, dated December 15, 1920, and agrees, upon appointment as such agent, faithfully to perform the duties iniposed upon cash agents by the provisions of said circulars, as from- time to time amended and supplemented. The maximum maturity value of Treasury Savings Certificates, Series of 1921, and War Savings Certificate Stamps, Series of 1921, ' which the undersigned desires to hold at any one time for sale as such agent, is I (Signature in full) By (Authorized signature required.) (Address, number, and street) (City or town) (County) (State) T R E A S U R Y DEPARTMENT. . • LOANS AND CURRENCY. Form L. & C. 354 (Revised, 1921). Name Street and number County State : :.. Your application on Form L. & C. 337 (Revised), dated , has been approved, and you are hereby appointed a cash agent for the sale of Treasury Savings Certificates, Series of 1921, War Savings Certificate Stamps, Series of 1921, Treasury Savings Stamps, and Thrift Stamps,' and the issue of War Savings Certificates, Series of 1921, Treasury Savings Cards, and Thrift Cards, subject to the provisions of Treasury Department Circulai*s Nos. 215 and 216, dated December 15, 1920, as from, time to time amended and supplemented. The maximum- maturity value of Treasury Savings Certificates, Series of 1921, and War Savings Certificate Stamps, Series of 1921, which you may hold at any one time for sale as such agent is $ FEDERAL RESERVE BANK OP , Fiscal Agent of the United States, Governor. Dated ., 192.... (Original to be issued to agent, duplicate to be forwarded to Secretary of the Treasury, Division of Loans and Currency, Washington, and triplicate to be retained by Federal Reserve Bank.) 312 REPORT ON THE FINANCES. TREASURY DEPARTMENT. - LOANS AND CURRENCY. ilorin L.:<fe C. 355 (Revised, 1921). !; : " "^ , CASH AGENT'S R E P O R T . MONTHLY R E P O R T OF SALES AND HOLDINGS OP T R E A S U R Y SAVINGS CERTIFICATES, / W A R SAVINGS CERTIFICATE STAMPS, T R E A S U R Y SAVINGS STAMPS, AND T H R I F T STAMPS. Dated , 192.... The undersigned cash agent for the sale of Treasury Savings Certificates and War Savings Certificates, Series of 1921, hereby renders to the Federal Reserve Bank of ., as fiscalagent of the United States, the following report of all transactions in Treasury Savings Certificates, War Savings Certificate Stamps, Treasury Savings Stamps, and Thrift Stamps obtained by i t from said Federal Reserve Bank, for'the month ending , , 192 : Balance on hand close of preceding month Treasury Savings Certificates (maturity value). War Savings Certificate Stamps (maturity value). Treasury Savings Stamps. $ S Thrift. Stamps. Denomina- Denomina- Denomination, $25. tion, $100. tion, $1,000. $ s $ $ Add amounts obtained during month :. Total Deduct sales current month— (maturity value) . Balance on hand "close of month.-.; (Name of agent.) By (Official signature required.) City State . NOTE.—This report must be accompanied by schedule showing the serial numbers of all Treasury Savings Certificates reported sold and all such certificates reported on hand at close of month. TREASURY DEPARTMENT. LOANS AND CURRENCY. Form L. <fe C. 356 (Revised, 1921). P L E D G E AGREEMENT. To the F E D E R A L R E S E R V E B A N K of , As fiscal agent of the United States: „ T h e undersigne<l desires to become a collateral agent for the issue and sale of Treasury Savings Certificates, Series of 1921, War Savings Certificates and Stamps, Series of 1921, , Treasury Savings Stamps, and Thrift Stamps, in accordance with the provisions of Treasury Department Circulars No. 215 and No. 216, dated December 15, 19'20, as from time to time amended and supplemented, and to obtain, from time to time, for sale to the public, as provided in said circulars. Treasury Savings Certificates, Series of 1921, War Savings Certificate Stamps, Series of 1921, Treasury Savings Stamps, and Thrift Stamps, in the'aggregate amount of $ (such Treasury Savings Certificates and War Savings Certificate Stamps to be taken for this purpose at the maturity value thereof, and such Treasury Savings Stamps at $1 each and such Thrift Stamps at 25 cents each), and, as and when such certificates and stamps shall be sold and accounted and paid for, to obtain in lieu thereof, from time to time thereafter, additional Treasury Savings Certificates and War Savings Certificate Stamps of t h e Series of 1921 (at maturity value). Treasury Savings Stamps (at $1 each), and Thrift Stamps (at 25 cents each), up to b u t not exceeding at any one time the total amount stated above. .SECRETARY OF THE.TREASURY. • 313 The undersigned hereby agrees that none of such certificates and stamps obtained by the undersigned shall be sold or disposed of otherwise than as provided in said circulars, and further agrees faithfully to perform all other obligations to be performed by collateral agents as therein and herein j)rovided. The undersigned agrees, in accordance with the provisions of Treasury Department Circular No. 216, dated December 15, 1920, before or upon the delivery to the undersigned of Treasury Savings Oertificates, War Savings Certificate Stamps, Treasury Savings Stamps, and Thrift Stamps, in the aggregate amount stated above, to deliver to such Federal Reserve Bank (or to a custodian designated by it), and to pledge with such Federal Reserve Bank, in negotiable form, and, in the case of coupon bonds, with all unmatured coupons attached, the following-described bonds and other securities, of the classes described in subdivisions (a), (b) and (c) of Treasury Department Circular No. 92, dated April 17, 1919, authorized to be deposited as collateral security under the terms of said Treasury Department Circular No. 216. Description of security. CoUateral value. Total collateral value. to be held by such Federal Reserve Bank, as Fiscal Agent of the United States, as collateral security for the faithful performance of the obligations of the undersigned, now or hereafter from time to time arising, as a collateral agent for the issue and sale of Treasury Savings Certificates, War Savings Certificates, War Savings Certificate Stamps, Treasury Savings Stamps, and Thrift Stamps, in accordance with the pro^ visions of said Treasury Department Circulars No. 215 and No. 216, and of any supplemental or amendatory regulations made from time to time as therein provided; the undersigned, however, so long as not in default hereunder, to be entitled to collect from time to time and to retain any and all interest upon the above-described collateral security. In case of any default in the performance of any of the obligations of the undersigned as collateral agent for the sale of Treasury SaAdngs Certificates, War Savings Certificate Stamps, Treasury Savings Stamps, and Thrift Stamps, and the issue of War Savings Certificates, Treasury Savings Cards, and Thrift Cards hereunder or under said Treasury Department Circulars Nos. 215 and 216, dated December 15, 1920, said Federal Reserve Bank shall have full power to collect said collateral security or any part thereof then matured, or to sell, assign, and transfer said collateral security or any part thereof without notice, at public or private sale, free from any equity of redemption and without appraisement or valuation, and after deducting all legal and other costs, attorney's fees, and expenses for collection, sale, and delivery, to apply the proceeds of such sale or collection, in whole or in part, to the satisfaction of any damages, demands, or deficiency arising by reason of such default, as said Federal Reserve Bank may deem best. The undersigned hereby for self, heirs, administrator's, executors, successors, and assigns, ratifies and confirms whatever said Federal. Reserve Bank may do by virtue of these presents. Upon delivery to the undersigned of any Treasury Savings Certificates, Series of 1921, War Sa^dngs Certificate Stamps, Series of 1921, Treasury Savings Stamps, or Thrift Stamps, desired to be obtained hereunder, this Pledge Agreement shall come into full force and effect, and the undersigned shall become a collateral agent as aforesaid. 314 REPORT ON THE FINANCES. In witne3s whereof, the undersigned has caused this agreement to be executed uuder seal by the officer below named thereunto duly authorized b}'' action of its governing board. Dated , 192.... (Signature in full) (Corporate Seal.) By , ^ (Authorized signature required.) - (Address, number and street) (City or town) (County) (State) TREASURY DEPARTMENT. Loans and Currency. Forin L. & C. 357 (Revised, 1921).. Name Street and Number City or Town County.State , , , , , Your pledge agreement on Form L. & C. 356 (Revised, 1921) has been approved and you are hereby appointed a collateral agent for the sale of Treasury Savings Certificates and War Savings Certificate Stamps, Serie's of 1921, Treasury Savings Stamps, and Thrift Stamps, and the issue of War Savings Certificates, Series of 1921, Treasury Savings Cards, and Thrift Cards subject to the provisions of Treasury Department Circulars Nos. 215 and 216, dated December 15, 1920, as from time to time amended and supplemented. FEDERAL RESERVE B A N K OF By , Fiscal Agent ofthe United States. ... Governor. Dated ,192 (Original to be issued to agent, duplicate to be forwarded to the Secretary of the Treasury, Division of Loans and Currency, and triplicate to be retained by Federal Reserve Bank.) TREASURY DEPARTMENT. Loans and Currency. Form L. & C. 358 (Revised, 1921). ' Serial No Date . . . . , 192 MONTHLY ACCOUNT OF SALES OF TREASURY SAVINGS CERTIFICATES AND WAR SAVINGS CERTIFICATE STAMPS, SERIES OF 1921, TREASURY SAVINGS STAMPS, AND THRIFT STAMPS, BY COLLATERAL AGENT. To FEDERAL RESERVE BANK OP , As FISCAL AGENT OP THE UNITED STATES. The undersigned" hereby renders the following account of transactions in Treasury Savings Certificates and War Savings Certificate Stamps, Series of 1921, Treasury Savings Stamps, and Thrift Stamps from , 192 , to -, 192 , both inclusive: 315 SECRETARY OF T H E TREASURY. Stoch account. Number of pieces. Treasury savings certificates. War Savings Certificate Denomina- Denomina- Denomina- Stamps. tion, $25. tion, $100. tion, $1,000. Treasury Savings Stamps. Thrift Stamps. On hand at close of preceding month 'Obtained during month. Total... iSales during month • Unsold stock returned ' Net total on hand Gross amount due in respect of sales. Number of Issue price. Total issue value. 1 $25 denomination.. $100 denomination.. $1,000 denomination.. IV ar Savings Stamps , Treasury Savings Stamps ;... $1.00 Thrift Stamps 0.25 Total The undersigned herewith remits for credit to its account the following: Currency ; Bank drafts or checks drawn upon the Federal Reserve Bank, or upon any member bank, payable to the order of " Federal Reserve Bank of , as Fiscal Agent ofthe United States," as follows: Treasury Savings Cards with Treasury Savings Stamps affixed, received in exchange for Treasury Savings Certificates, stamps taken at $1 each Treasury Savings Cards with Treasury Savings Stamps affixed, received in exchange for War Savings Stamps, stamps taken at $1 each -.'. , Thrift Cards with full complement of Thrift Stamps afiixed, received in exchange for War Savings Stamps, at $4 T.S.C. denomination. War Savings Starnps affixed to War.Savings Certificates, Series of 1921, received in exchange for Treasury Savings Certificates, Seriesof 1921 Total. $25 $100 $1,000 Date of Number of Exchange rate per exchange. stamps. stamp. Total exchange value. 316 REPORT ON THE FINANCES. Remarks Signed By.... (Name of Collateral Agent.) (Ofiicial signature required.) (Address, number, and street) (City or town) (County).: (State) NOTE 1.—A similar account must be rendered on or before the 10th day of each month. NOTE 2.—No medium of payment other than above provided will be accepted by any Federal Reserve Bank, except at its own risk, and no agent shall be entitled to credit, in respect of any payment to be made by check or draft, except when such check or draft shall have been collected by the Federal Reserve Bank, as fiscal agent of the United States. TREASURY DEPARTMENT. LOANS AND CURRENCY. Form L. & C. 382 (Revised, 1921). SALES STATION—IDENTIFICATION CARD. To POSTMASTERS AND OTHER AUTHORIZED AGENTS: You are hereby authorized, pursuant to Treasury Department Circular No. 216, dated December 15, 1920, to sell. Treasury Savings Stamps and Thrift Stamps, and War Savings Certificate Stamps, Series of 1921 (in amounts not exceeding $1,000, maturity value, at any one time), and to issue the necessary supply of Treasury Savings Cards, Thrift Cards, and blank War Savings Certificates therefor, to (Name.) (Address.) who conducts a Sales Station. This authority expires December 31, 1921. Director, Government Savings Organization, Federal Reserve District. E X H I B I T 57. [Department Circular No. 217. Loans and Currency.] FURTHER REGULATIONS GOVEBNING TREASURY SAVINGS CERT I F I C A T E S , S E R I E S O F 1918, S E R I E S OF 1919, AND S E R I E S OF 1920. TREASURY DEPARTMENT, O F F I C E OF THE SECRETARY, Washington, December 15,1920. To holders of War-Savings Certificates, series of 1918, series of 1919j , and series of 1920, Federal Keserve Banlcs, and others concerned: 1. The issue and sale of Treasury Savings Certificates, Series of 1920, for cash, pursuant to the provisions of Treasury Department Circular No. 170, dated December 10, 1919, will cease at the close of business on December 31, 1920, b u t the issue of such certificates after December 31, 1920, in exchange for United States War-Savings Certificates, Series of 1920, with War-Savings Certificate Stamps, Series of 1920, afl&xed (hereinafter called War-Savings Certificates, Series of 1920), is hereby continued until further notice at the SECRETARY OF THE TREASURY. 317 Federal Reserve Banks and the Treasury Department, Washington, upon the terms and conditions hereinafter specified. The aggregate maturity value of United States War-Savings Certificates of the Series of 1920 outstanding will not be increased by reason of the issue of Treasury Savings Certificates, Series of 1920, pursuant to this circular. Treasury Savings Certificates, Series of 1920, issued pursuant to this circular will be the same in form and terms as the Treasury Savings Certificates, Series of 1920, outstanding under said Treasury Departinent Circular No. 170, except that certificates issued pursuant to this circular will provide that they may be issued only in exchange for War-Savings Certificates, Series of 1920, of the same maturity value, and not for cash sale. Treasury Savings Certificates, Series of 1920, can not be obtained after December 31, 1920, at post offices or incorporated banks or trust companies. 2. The issue of Treasury Savings Certificates, Series of 1918, in exchange for War-Savings Certificates, Series of 1918, pursuant to the provisions of Treasury Department Circular No. 171, dated December 10, 1919, will cease at post offices on December 31, 1920, but will continue. until further notice at the Federal Reserve Banks and the Treasury Department, Washington, subject, however, to the provisions of this circular. 3. The issue of Treasury Savings Certificates, Series of 1919, in exchange for War-Savings Certificates, Series of 1919, pursuant to the provisions of Treasury Department Circular No. 169, dated December 10, 1919,, will cease at post offices on December 31, 1920, b u t will continue .until further notice at the Federal Reserve Banks and the Treasury Department, Washington, subject, however, to the provisions of this circular. 4. After December. 31, 1920, Treasury Savings Certificates of the Series of 1918, Series of 1919, and Series of 1920, respectively, can be obtained in exchange for War-Savings Certificates of the Series of 1918, Series of 1919, and Series of 1920, respectively, only at the several Federal Reserve Banks,, as fiscal agents of the Unitea States, and at the Office of the Secretary of the Treasury, Division of Loans and Currency, Washington: Provided, however. That when registered War-Savings Certificates are presented for such exchange into Treasury Savings Certificates, presentation must be made through the post office where registered, in the manner hereinafter provided. Treasury Savings Certificates of the Series of 1918 can be obtained only in the denomination of $100 (maturity value), b u t Treasury Savings Certificates of the Series of 1919 and Series of 1920 can be obtained in denominations of $100 and $1,000 (maturity value), even in exchange for registerd War-Savings Certificates of the same series. P R E S E N T A T I O N A N D S U R R E N D E R O F WAR-SAVINGS CERTIFICATES. 5. One or more War-Savings Certificates of the Series of 1918, Series of 1919, or Series of 1920, respectively, of the same series, which have an aggregate maturity value of $100, or some multiple thereof, no more, no less, will be received, after December 31, 1920, in exchange for Treasury Savings Certificates of the same series and same aggregate maturity value, upon presentation and surrender for that purpose at any Federal Reserve Bank, or the Office of the Secretary 318 REPORT ON THE FINANCES. of the Treasury, Division of Loans and Currency, Washington; provided, however, that when registered War-Savings Certificates are surrendered for such exchange, presentation and surrender must be made through the post office where registered. The postmaster at the post office of registration, in the event of the presentation and surrender of registered War-Savings Certificates for such exchange, will, if satisfied as to the facts, execute the certificate contained in " the Request for Exchange on Form General 1020 (attached hereto), and forward the request, with the War-Saviixgs Certificates and the registration cards therefor on Form WS-110, by official registered mail to the Third Assistant Postmaster General, Division of Stamps, first canceling the War-Savings Certificates in such manner as the Postmaster General may direct. The Third Assistant Postmaster General, Division of Stamps, will promptly forward to the Secretary )f the Treasury, Division of Loans and Currency, for attention, all such requests for exchange, together with the War-Savings Certificates presented in exchange and the registration cards therefor. I n case two or more War-Savings Certificates of the same series are presented for exchange, the certificates so presented may be some registered and some unregistered, but in that event must all be presented through the post office where the registered certificates are registered, which will then cancel and forward the unregistered certificates in the same manner as if registered. If two or more War-Savings Certificates are presented for exchange in accordance with this circular, each such certificate presented need not bear the full complement of 20 War-Savings Certificate Stamps, provided t h a i the aggregate maturity value of the certificates presented of the same series is $100, or some multiple thereof, no more, no less. 6. War-Savings Certificates presented and surrendered in exchange for Treasury Savings Certificates of the same series in accordance with the provisions hereof must in each case be accompanied by a Request, for Exchange on Form General 1020, when registered certificates are surrendered, or Form General 1021, when unregistered certificates are surrendered. Copies of these forms are attached hereto (and additional copies may be obtained from Federal Reserve Banks; post offices, or the Treasury Department, Division of Loans and Currency, Washington). Requests for Exchange must bear the autograph signatures of the owners whose names are inscribed on the War-Savings Certificates so surrendered for exchange. The Treasury Savings Certificates issued on exchange will be inscribed in the same name as the War-Savings Certificates surrendered for exchange unless another name and address shall be indicated in writing on the Request for Exchange, in which event the Treasury Savings Certificates will be inscribed in the name and address so indicated. 7. No previous demand for payment of War-Savings Certificates surrendered in exchange for Treasury Savings Certificates of the same series, in accordance with the .provisions hereof, will be required, and the exchange will be made in each case without payment to or by the United States. The receipt form on the War-Savings Certificates so surrendered in exchange for Treasury Savings Certificates must, however, be duly executed by the owner of the War-Savings Certificates so surrendered, and appropriate notation shall be made by the issuing office, on the War-Savings Certificates so surrendered, of their receipt in exchange for Treasury Savings Certificates. SECRETARY OF T H E TREASURY." 319 TRANSMISSION OF ORIGINAL REGISTRATION STUBS. 8. The original registration stubs detached from Treasury Savings Certificates issued by any Federal Reserve Bank pursuant to this circular shall be attached in each case to the Request for Exchange submitted in connection with the issue of the Treasury Savings Certificate, and forwarded monthly to the Secretary of the Treasury, Division of Loans and Currency, Washington, with such Request for Exchange, so as to reach the Treasury Department not later than the month succeeding the month in which the Treasury Savings Certificate was issued. The War-Savings Certificates received in exchange shall be canceled by the Federal Reserve Bank by punching a quarterinch hole through each stamp affixed thereto, and transmitted to the Register of the Treasury, Washington, at the end of each month. TRANSPORTATION CHARGES AND RISKS. 9. No charge will be made by the United States for Treasury Savings Certincates issued in accordance with the provisions of thi.s circular, and when issued the certificates will be delivered at the risk and expense of the United States. The holder of unregistered WarSavings Certificates presenting them for exchange for Treasury Savings Certificates hereunder must, however, arrange for the delivery thereof to the Secretary of the Treasury, Division of Loans and Currency, Washington, or a Federal Reserve Bank, at his own risk and expense. Recognized banking institutions throughout the United States ordinarily offer to their customers facilities for the transmission of unregistered War-Savings Certificates to the appropriate Federal Reserve Bank by registered mail insured, at small expense, pursuant to authorized arrangements with Federal Reserve Banks. Registered War-Savings Certificates presented for exchange for Treasury Savings Certificates in accordance with the. provisions hereof must be delivered to tbe post office where registered. MISCELLANEOUS PROVISIONS. 10. Treasury Savings Certificates of the Series of 1918^ Series of 1919, and Series of 1920, authorized to beissued hereunder, will not be issued against the surrender of War-Savings Certificates of any other series (of whatever issue or denomination). Treasury Savings Certificates, detached War-Savings Stamps, War-Savings Certificates of the Series of 1918, Series of 1919, or Series of 1920, having an aggregate maturity value not $100 or some multiple thereof, Thrift Cards with Thrift Stamps attached, detached Thrift Stamps, Treasury Savings Cards with Treasury Savings Stamps attached, or detached Treasury Savings Stamps. Post offices will be required to surrender all Treasury Savings Certificates, Series of 1918, and all TreasurySavings Certificates, Series of 1919, and all Treasury Savings Certificates, Series bf 1920, held by them for exchange and remaining in their hands unissued at the close of business ori December 31, 1920^ and all duplicate registration stubs for Treasury Savings Certificates,. Series of 1918, and. Treasury Savings Certificates, Series of 1919, issued by them during the calendar year 1920, in accordance with instructions issued by the Postmaster General. 320 REPORT ON T H E FINANCES. 11. Subject to the provisions of this circular, all the provisions of Treasury Department Circulars No. 143, dated July 1, 1919; No. 149, dated July 31, 1919, August 20, 1920; No. 166, dated November 15, 1919; No. 169, dated December 10, 1919; No. 170, dated December 10, 1919; No. 171, dated December 10, 1919; and No. 178, dated January 15, 1920, as severally amended and supplemented, apply to and govern, respectively. Treasury Savings Certificates of the Series of 1918, Series of 1919, and Series of 1920, issued in exchange for War-Savings Certificates pursuant to the provisions of this circular. 12. The Secretary of the Treasury may at any time withdraw this circular as a whole, or from' time to time amend any of the provisions hereof. The Secretary of the Treasury may at any time withdraw Treasury Savings Certificates, Series of 1918, Series of 1919, and of Series of 1920, or any of them, from issue, refuse to issue or permit, to be issued any such certificates, and refuse to issue or permit to be issued any such certificates to any person, firm, corporation, or asst>ciation. 13. The Secretary of the Treasury may make from time to time any supplemental or amendaltory regulations which shall not modify or impair the terms and conditions of Treasury Savings Certificates, Series of 1918, Series of 1919, or Series of 1920, issued under the provisions of the act approved September 24, 1917, as amended and supplemented. 14. Further details and instructions may be announced by the Secretary of the Treasury from time to time, information as to which will be promptly furnished to the Postmaster General and the Federal Reserve Banks. D. F. HOUSTON, Secretary of the Treasury. TREASURY DEPARTMENT LOANS AND CURRENCY Form General 1020 R E Q U E S T FOR EXCHANGE OF R E G I S T E R E D WAR-SAVINGS CERTIFICATES . ( S E R I E S OF 1918, S E R I E S OF 1919, OR S E R I E S OF 1920) F O R TREASURY SAVINGS (CERTIFICATES. IMPORTANT.—When R E G I S T E R E D War-Savings Certificates, Series of 1918, Series of 1919, or Series of 1920, are presented for exchange, this request must be presented only to the post office of registration. The postmaster at the post office of registration will, if satisfied as to the facts, execute the certificate given below and forward the request, with the War-Savings Certificates and the registration cards therefor, on Forrri WS-110, by oflBcial registered mail to the Third Assistant Postmaster General, Division of Stamps. Dated. ,192 USE SEPARATE F O R M F O R EACH SERIES; CROSS OUT THE TWO YEARS NOT APPROPRIATE. T o THE POSTMASTER, / The undersigned herewith presents and surrenders $ aggregate matarity (See note 1.) [1918] value, of R E G I S T E R E D United States War-Savings Certificates, Series of] 1919 L ll920j bearing the name of and duly receipted by the undersigned (see Note 2), and requests that Treasury Savings Certificates of the same series and same raaturity value be issued in exchange therefor, all in accordance with the pro\dsions of Treasury Depart- SECRETARY OF T H E TREASURY. 321 ment Circular No. 217, dated December 15, 1920. The following name and address shall be inscribed on the Treasury Savings Certificates to be issued hereon (see Note 8): (First name in full. Indicate whether Mrs.or Miss,in cases of women.)(Middle name or initial.)(Last name.) (Or complete legal name of corporation, partnership, or other person.) Address (Give full address.) (Number.) (City.) (Street.) ^ (State.) Autograph signatures of person or persons (or their duly authorized representatives) [1918] whose names are inscribed on War-Sa\dngs Certificates, Series of] 19191, presented ll920j for exchange: CERTIFICATE BY POSTMASTER. THIRD ASSISTANT POSTMASTER GENERAL, Division of Stamps. I transmit herewith the War-Savings Certificates above described and (How many.) registration cards (Form WS-110) bearing the official record of the registration thereof. I certify that the entries on the backs of said cards indicate the registration of a total of War-Savings Certificate Stamps, Series of 19..; and that the above (How many.) • request was signed by . .. . , who, I am satisfied, is the' registered (Name of applicant.) owner. . , (Date.) • (Signature of postrriaster.) (Postoffice.) (TO B E FILLED IN BY TREASURY (State.) DEPARTMENT.) .....,,.....,...,.,...,,..192.;:, [1918] The serial numbers of the Treasury Savings Certificates, Series of] 1919 >, issued . . [l920j . . pursuant to above request, are as follows: NOTE 1.—Treasury Savings Certificates,'Series of 1918, Series of 1919, or Series of 1920, may be issued after December 31,1920, only in exchange for one or more War-Savings Certificates, Series of 1918, Series of 1919, or Series of 1920, respectively, which have an aggregate maturity value of SlOO, or some multiple .thereof, no more, no less, and will not be issued on cash sale. In case two or more War-Savings Certificates, Series of 1918, Series of 1919, or Series of 1920, are presented for. e;xchange,.the.certificates so presented may be some registered and some unregistered, but in that event must be presented to the post oflice where the registered certificates are registered. If two or more War-Savings Certificates, Series of 1918, Series of 1919, or Series of 1920, are presented for exchange, each such certificate presented need not bear the full complement of twenty War-Savings Certificate Stamps, Series of 1918, Series of 1919, or Series of 1920, respectivelyprovided that the aggregate maturity value of the-certificates of the same series presented is $100, or some multiple thereof, no more, no less. NOTE 2.—The War-Savings Certificates, Series of 1918, Series of 1919, or Series of 1920, presented in exchange must be duly receipted by the ovmev in the same mamier as if presented for payment. No previous demand for payment of such certificates will be required, however, and the exchange will be made in each case without payment to or by the United States. NOTE 3.—The Treasury Savings Certificates, Series of 1918, Series of 1919, or Series of 1920, issued on exchange will be inscribed in the same name as the War-Savings Certificates, Series of 1918, Series of 1919, or Series of 1920,respectively, surrendered for exchange,„unlessanother,name and address shallbe indicated in writing on this request, in which event the Treasury SaViiigs Certificates will be inscribed in the name and address so indicated. •NOTE 4.—This request must be attached to the registered War-Savings Certificates, ^Series of 1918, Series of 1919, or the Series of 1920, surrendered for exchange, and forwarded by postmasters to the Third Assistant Postmaster General, Division of Stamps, with the registration cards on Form WS-110. 70073—FI 1921 ^^21 322 REPORT ON T H E FINANCES. TREASURY DEPARTMENT LOANS AND CURRENCY Form General 1021 . ^ ' .. ' R E Q U E S T FOR EXCHANGE OF UNREGISTERED WAR-SAVINGS CERTIFICATES ( S E R I E S OF 1918, S E R I E S OF 1919, OR S E R I E S OF 1920) FOR TREASURY SAVINGS CERTIFICATES. IMPORTANT.—When UNREGISTERED WarrSavings Certificates, Series of 1918, Series of 1919, or Series of 1920, are presented for exchange, this request may be presented to any Federal Reserve Bank or to the Secretary of the Treasury, Division of Loans and Currency, Washington. I t should not be presented to a postmaster, unless coupled with a similar request for exchange of registered War-Savings Certificates. (See Note 1.) Dated , ,192 USE SEPARATE FORM FOR EACH SERIES; CROSS OUT THE TWO YEARS NOT APPROPRIATE. To The F E D E R A L R E S E R V E B A N K OF Or The Fiscal Agent of the UnitedStates. SECRETARY OF THE TREASURY, Division of Loans and Currency, Washington, D . C. The undersigned herewith presents and surrenders $ (See note 1.) aggregate maturity value, of U N R E G I S T E R E D United States War-Savings Certifi[1918] cates, Series of 1919 [, bearing the name of and duly receipted by the undersigned I1920J (see Note 2), and requests that Treasury Savings Certificates of the same series and same maturity value be issued in exchange therefor, all in accordance with the provisions of Treasury Department Circular No. 217, dated December 15, 1920. The following name and address shall, be inscribed on the Treasury Savings Certificates to be issued hereon (see Note 3): (First name in full. Indicate whether Mrs. or Miss, in cases of women.)(Middle name or initial.)(Last name.) (Or complete legal name of corporation, partnership, or other person.) •Address .. (Give full address.) * • *" " (City.) (Number.) " (Street.) " '(Stated) " Autograph signatures of person or persons (or their duly authorized representatives) [1918] whose names are inscribed on War-Savings Certificates, Series of] 1919 \, presented I1920J for exchange: (TO BE FILLED IN BY ISSUING OFFICE.) ..,192 1918 The serial numbers of the Treasury Savings Certificates, Series of- 1919 , issued pur1920 suant to above request, are as follows: (Signature of Issuing Officer.) NOTE 1.—Treasury Savings Certificates, Series of 1918, Series of 1919, or Series of 1920, may be issued after December 31,1920, only in exchange for one or more War-Savings Certificates, Series of 1918, Series of 1919, or Series of 1920, respectively, which have an aggregate maturity value of $100, or some multiple thereof, no more, no less, and will not be issued on cash sale. In case two or more War-Savings Certificates, Series of 1918, Series of 1919, or Series of 1920, ar« presented for exchange, the certificates so presented may be SECRETARY OF THE. TREASURY. 323 some registered and some unregistered, but in that event must be presented to the post office where the registered certificates are registered. If two or more War-Savings Certificates, Series of 1918, Series of 1919, or Series of 1920, are-presented for exchange, each such certificate jpresented need not bear the full complement of twenty War-Savings Certificate Stamps, Series of 1918, Series of 1919, or Series of 1920, respectively, provided t h a t t h e aggregate maturity value of the certificates of the same series presented is $100, or some multiple thereof, no more, no less. NOTE 2.—The War-Savings Certificates, Series of 1918, Series of 1919, or Series of 1920, presented in exchange must be duly receipted by the owner in the same manner as if presented for payment. No previous demand for payment of such certificates will be required, however, and the exchange will be made in each case without payment to or by the United States. NOTE 3.—The Treasury Savings Certificates, Series of 1918, Series of 1919, or Series of 1920, issued on exchange will be inscribed in the same name as the War-Savings Certificates, Series of 1918, Series of 1919, or Series of 1920, respectively, surrendered for exchange, unless another name and address shaU be indicated in writing on this request, in which event the Treasury Savings Certificates will be inscribed in the name and address so indicated. NOTE 4.—This request must be attached to the original registration stubs detached from the Treasury Savings Certificates issued on exchange and forwarded to the Secretary of the Treasury, Division of Loans and Currency, Washington. EXHIBIT 58. [Department Circular No. 220. Loans and Currency.] S U R R E N D E R OF WAR-SAVINGS C E R T I F I C A T E S AND STAMPS, S E R I E S OF 1920, T R E A S U R Y SAVINGS C E R T I F I C A T E S , S E R I E S OF 1920, AND T H R I F T STAMPS, H E L D BY A U T H O R I Z E D A G E N T S AND SALES STATIONS. TREASURY DEPARTMENT, O F F I C E OF THE SECRETARY, Washington, December 20, 1920. To agents and sales stations for the sale of War-Savings Certificates and Stamps, series of 1920, agents for the sale of Treasury Savings Certificates, series of 1920, Federal Reserve Banlcs, and others concerned: 1. General provisions.—The sale of War-Savings Certificates and Stamps, series of 1920, and of Treasury Savings Certificates, series of 1920, will cease at the close of business on December 31, 1920. All sales stations for the issue and sale of War-Savings Certificates and Stamps, series of 1920, are required to surrender all such certificates and stamps held by them and remaining unsold at the close of business on December 31, 1920, to an incorporated bank OT trust company on or before January 20, 1921, or to the Federal Reserve Bank of the ' district in which such sales station is located, on or before January 31, 1921. Except as provided in paragraph 4 hereof with respect to cash agents, all cash and collateral agents for the issue and sale of such certificates and stamps or for the issue and sale of Treasury Savings Certificates, series of 1920, are required to surrender on or before January 31, 1921, all such certificates and stamps held by them and remaining unsold at the close of business December 31, 1920, in each case to the Federal Reserve Bank of the district in which the agent is located. Rules and regulations governing agencies for the distribution and sale during the calendar year 1921 of Treasury Savings Certificates, series of 1921, War-Savings Certificates and Stamps, series of 1921, Treasury Savings Stamps, and Thrift Stamps, are prescribed in Treasury Department Circular No. 216, dated December 15, 1920. 2. "The term ^'sales station^^ where it appears in this circular refers to stations established under the authority of Treasury Department Circular No. 181, dated February 10, 1920. The terms ''cash agent'' and ''collateral a g e n f where they appear in this circular refer, respectively, to cash agents and collateral agents qualified under 324 REPORT ON THE FINANCES. Treasury Department Circular No. 172, dated-December 10, 1919, as amended and supplemented, for the sale of War-Savings Certificates and Treasury Savings Certificates, series of 1920. SALES STATIONS. 3. Every sales station is required to surrender all unsold WarSavings Certificates and Stamps, series of 1920, remaining in its hands unsold at the close of "business on December 31, 1920, to an incorporated bank or trust company in the Federal Reserve district in which it is located, on or before January 20, 1921, or to the Federal Reserve Bank of the district, on or before January 31, 1921. Federal Reserve Banks and incorporated banks and trust companies are hereby authorized to receive such certificates and stamps so surrendered and to make cash reimbursement in each case to the sales station for the War-Savings Certificate Stamps, series of 1920, so surrendered at the rate of $4.24 for each stamp. The surrender of such stamps by a sales station may be accepted by the Federal Reserve Bank or an incorporated bank or trust company only upon presentation by such sales station of its Sales Station Identification Card, or other satisfactory evidence of its designation as .a sales station for the issue and sale of War-Savings Certificates and Stamps. Any incorporated bank or trust company so receiving War-Savings Certificates and Stamps, series of 1920, must deliver such certificates and stamps on or before January 31, 1921, to the Federal Reserve Bank of its district, together with a schedule setting forth the names of the authorized sales stations from which the stamps have been received and the number of starops received from each sales station. On receipt thereof, the Federal Reserve Bank, as fiscal agent of the United States, will make cash reimbursement to such incorporated bank or trust company for the War-Savings Certificate Stamps, series of 1920, so surrendered, at the rate of $4.24 for each stamp. No Federal Reserve Bank or incorporated bank or trust company shall accept from any one sales station the surrender of War-Savings Certificate Stamps, series of 1920, in excess of $1,000 (maturity value) without special authority from the Secretary of the Treasury. CASH AND COLLATERAL AGENTS. 4. Cash agents.—l^vevJ cash agent is required to surrender on or before January 31, 1921, to the'Federal Reserve Bank from which the certificates and stamps were obtained, all Treasury Savings Certificates, series of 1920, and all War Savings Certificate Stamps, series of 1920, held by such agent for issue and sale-to the public and remaining unsold at the close of business December 31, 1920; provided, howeyer, that any cash agent which shall have sold Treasury Savings Certificates of the series of 1920 under ari approved partial J)ayment plan which calls for payments after December 31,1920, with t h e final installment on or before September 30, 1921, shall be permitted to surrender unsold stocks of such Treasury Savings Certificates until October 31,1921. Upon any such surrender each such ()ash agent will be entitled to cash reimbursement for the Treasury Savings Certificates and War Savings Certificate Stamps so surrendered at a rate equivalent to the current redemption value thereof during the SECRETARY OE THE TREASURY. 325 month in which such surrender is made, not later than the month in which the certificates and stamps are required to be surrendered. In lieu of such reimbursement, any cash agent that shall be duly qualified as a cash agent for the issue and sale of-Treasury Savings Certificates and War Savings Certificates, series of 1921, under the provisions of'Treasury Department Circular No. 21-6, dated December 15, 1920, may, at the option of such agent, receive Treasury Savings Certificates, series of 1921, and War Savings Certificate Stamps, series of 1921, computed at the current issue price thereof, United States Treasury Savings Stamps computed at $1 each, United States Thrift Stamps computed at 25 cents each, and cash, to an aggregate value so computed not exceeding the amount to be reimbursed. No Federal Reserve Bank shall accept from any cash agent the surrender of War Savings Certificate Stamps, series of 1920, and Treasury Savings Certificates, series of 1920, to an aggregate maturity value in excess of the agent's authority to hold, without special authorit}'- therefor from the Secretary of the Treasury. 5. CoUateral agents.—Every collateral agent is required to surrender on or before January 31, 1921, to the Federal Reserve Bank from which they were obtained, all Treasury Savings Certificates, series of 1920, and all War Savings Certificate Stamps, series of 1920, obtained by such agent from such Federal Reserve Bank, and not sold before the close of business December 31, 1920, and upon such surrender shall receive appropriate credit for the certificates and stamps so surrendered in its account with such Federal Reserve Bank. POST OFFICES. , 6. Post oflices will be required to surrender all Treasury Savings Certificates, series of 1920,, and War Savings Certificates and Stamps, series of 1920, held by them for sale and remaining in their hands unissued or unsold at the close of business on December 31, 1920, and all duplicate registration stubs for Treasury Savings Certificates, series of 1920, issued by them during the calendar year 1920, in ac-. cordance with instructions issued by the Postmaster GeneraL No post office shall accept the surrender of any unissued Treasury Savings Certificates, War Savings Certificate Stamps or Thrift Stamps from any agent or sales station for the sale of War Savings Certificates or Treasury Savings Certificates other than a postal agent. SURRENDER OF THRIFT STAMPS, 7. United States Thrift Stamps, issued at any time on or after December 3, 1917, will be on sale during 1921, and appropriate arrangements will be made for the exchange of filled Thrift Cards for War Savings Certificate Stamps, series of 1921. Duly qualified agents and sales stations for the sale of War Savings Certificates, series of 1921, under the provisions of Treasury Department Circular No. 216, dated December 15, 1920, will therefore not be required to surrender unsold Thrift Stamps remaining in their hands at the close of business on December 31, 1920. Agents and sales stations who do.not undertake the sale of War Savings Certificates, series of 1921, are required to surrender, and other agents and sales stations at their option may surrender, unsold Thrift Stamps remaining in their 326 REPC)RT ON THE FINANCES. hands at the close of business on December 31, 1920, to the Federal Reserve Bank of the. district, on or before January 31, 1921, in the same manner as unsold War Savings Certificate Stamps, series of 1920, and will receive credit or cash reimbursement, as the case may be, from such Federal Reserve Bank, as fiscal agent of the United vStates, for the Thrift Stamps so surrendered at the rate of 25 cents each; provided, however, that sales stations may surrender, and incorporated banks and trust companies and Federal Reserve Banks are authorized to accept, such unsold Thrift Stamps, with cash reimbursement therefor at the rate of 25 cents each, in accordance with the procedure applicable to War Savings Certificate Stamps under paragraph 3 hereof. SURRENDER OF BLANK WAR SAVINGS CERTIFICATES, SERIES OF 1920. 8. Every cash or collateral agent and sales station shall surrender all blank War Savings Certificates, series of 1920, held by it unissued at the close of business on December 31, 1920, at the same time and in the same manner as the War Savings Certificate Stamps, series of 1920, surrendered by it in accordance with this circular: Provided, however. That no credit will be given nor reimbursement made for blank certificates so surrendered. SURRENDER OF DUPLICATE REGISTRATION STUBS SAVINGS CERTIFICATES. FROM TREASURY 9. Every cash or collateral agent which qualified as an agent for the issue and sale of Treasury Savings Certincates, series of 1920, in accordance with the provisions of Treasury Department Circular No. 172, dated December 10, 1919, as amended and supplemented, is required to surrender on or before November 30, 1921, to the Federal Reserve Bank from which such certificates were obtained, all duplicate registration stubs from the Treasury Savings Certificates, series of 1920, issued by such agent. The Federal Reserve Bank receiving ^ such stubs will forward them on or before Deceinber 10, 1921, to the Secretary of the Treasury, Division of Loans and Currency, Washington. MISCELLANEOUS PROVISIONS. 10. The provisions of this circular as to the.surrender of Treasury Savings Certificates, series of 1920, War Savings Certificate Stamps, series of 1920, and United States Thrift Stamps, apply only to unissued certificates and stamps and to duly authorized agents and sales stations, and in the case of cash or collateral agents, apply only to such certificates and stamps as were obtained by such agents from the Federal Reserve Bank to which they are presented for surrender. No incorporated bank or trust company is authorized hereunder to accept the surrender of any such certificates or stamps from anyone other than a duly authorized sales station for the sale thereof, and no Federal Reserve Bank is authorized hereunder to accept the surrender of any Treasury Savings Certificates, War Savings Certificate Stamps, or Thrift Stamps from any cash or collateral agent which were'not obtained from it by such agent: Provided, however. That Federal Reserve Banks are authorized to accept War Savings Cer- SECRETARY OF THE TREASURY. 327 tificate Stam.ps and Thrift Stamps from incorporated banks and trust companies, in accordance with the provisions of paragraphs 3 and 7 hereof. Except as herein otherwise specifically provided in paragraph 4, no Federal Reserve Bank is authorized hereunder to accept the surrender of any certificates or stamps (except blank War Savings Certificates) presented to it after January 31, 1921, without special authority therefor in each case from the Secretary of the Treasury. 11. All cases in which Treasury Savings Certificates, series of 1920, War Savings Certificate Stamps, series of 1920, or Thrift Stamps are presented for surrender hereunder contrary to the provisions of this circular should be promptly referred to the Secretary of the Treasury, Division of Loans and Currency, Washington, for further instructions. 12. The Secretary of the Treasury may at any time withdraw this circular as a whole, or amend from time to time any of the provisions thereof, and may, from time to time, make any supplemental or amendatory regulations which shall not modify or impair the terms and conditions of United States War Savings Certificates, series of 1920, of whatever issue or denomination, issued in pursuance of the act of September 24, 1917, as amended and supplemented. D. F. HOUSTON, Secretary of the Treasury. EXHIBIT 59. [Department Circular No. 149, Revised. Loans and Currency.] UNITED STATES OF AMERICA—TREASURY CATES. SAVINGS CERTIFI- TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, Washington, Ju^e 25, 1921. To Holders of Treasury Savings Certificates and Others Concerned: Treasury Depjartment Circular No. 149, dated July 31, 1919, with regard to the rights of holders of Treasury Sayings Certificates, as heretofore amended and extended, is hereby amended so as to read as follows: The following Treasury Department regulations further define the rights of holders of Treasury Savings Certificates and determine the terms and conditions upon which Treasury Savings Certificates will be payable in case of the death or disability of the owner: . I. C E R T I F I C A T E S N O T PRESENTED A T MATURITY. Treasury maturity. Savings Certificates shall not bear interest after LOST, STOLEN, OR DESTROYED CERTIFICATES. In the event of the loss, theft, or destruction of a Treasury Savings Certificate duly issued and registered in accordance with the regulations and instructions governing issue and registration, the registered 328? -REPORT ON THE FINANCES. owner may apply to the Secretary of the Treasury, Division of Loans and, Currency, Washington, on a form prescribed by the Secretary of . the Treasury (L. & C. 275), either for the issuance of a duplicate certificate or for the payment of the original certificate. On being • satisfied of the facts as to loss or destruction, the Secretary of the Treasury will, after not less than three months have elapsed from the time of application, issue to the registered owner a duplicate certificate or make payment of the original certificate, but no duplicate certificate will be issued after maturity of the original. Any duplicate certificate so issued shall be marked " duplicate," but shall receive a new number and bear a notation of the number of the original certificate. Appropriate notation of the issue of the duplicate certificate or payment of the original certificate will be made on the registration records of the Treasury Department. The Secretary of the' Treasury may, in special cases where he deems the facts warrant such action, require the claimant to give a bond of indemnity, with approved sureties, against any claim that may thereafter be made on the original certificate. The duplicate certificate when issued shall stand for all purposes in the place and stead of the original lost, stolen, or destroyed certificate. After the issuance of a duplicate certificate, or the payment of the original certificate, the original shall cease to have validity for any purpose, and if recovered shall be returned to the Secretary of the Treasury, Division of Loans and Currency, Washington, for cancellation. III. CREDITORS' RIGHTS. Payment of Treasury Savings Certificates will be made to the owner named thereon, notwithstanding any lien, attachment, trustee process, garnishment, judgment, receivership, levy, execution, order, decree, or similar process of law, equity, or in bankruptcy directed against the owner thereof, but nothing herein contained shall excuse the owner from full compliance with, or performance of, any lawful judgment, order, or decree of a court of competent jurisdiction with reference to disposition of the proceeds of the certificate. CoUection of the certificate by the owner pursuant to such judgment, order, or decree will be deemed a payment received on behalf of the owner and not for any other person within the language of the demand printed on the certificate, notwithstanding that the owner is, by such judgment, order, or decree, required to pay the proceeds to another person. Neither the United States of America nor any officer or employee thereof shall be a proper or necessa^-y party to any suit or action with reference to such certificate or the proceeds thereof nor be bound by any judgment, order, or decree rendered or entered therein. IV. HOLDING OF TREASURY SAVINGS CERTIFICATES BY : PARTNERSHIPS, AND OTHERS. CORPORATIONS, 1. Treasury Savings Certificates may be issued and registered in the name of and held by corporations, partnerships, associatioris, or joint-stock companies. .^ SECRETARY OF T H E TREASURY. 329 2. Payment of a certificate registered in the name of a corporation, association, or joint-stock company will be made to such corporation, association, or joint-stock company, provided the form of demand for payment on the certificate is duly executed in the name of such corporation, association, or joint-stock company, and duly signed by a duly authorized officer thereof, over his official title; and payment of a certificate registered in the name of a partnership will be made to such partnership, provided the form of demand for payment on the certificate is duly executed in the name of such partnership, and duly signed by one of the partners thereof, as a member of the firm. No designation may be made on the certificate or registration stub of an officer or agent to receive payment on behalf of a corporation, partnership,- association, or joint-stock.company. V. ; • FIDUCIARIES. Treasury Savings Certificates may be issued and registered iii the names of fiduciaries in their representative capacities. Payment of any such certificate will be made to the fiduciary or fiduciaries, except that in the event of the death or disqualification of the fiduciary or fiduciaries, payment may be made, in the discretion of the Secretary of the Treasury, to the person or persons in his opinion beneficially entitled thereto. In determining whether the $1,000 limitation on the holdings of a single person has been exceeded, the full maturity value of Treasury Savings Certificates of any one series held for the benefit of such person in the name of a fiduciary or fiduciaries shall be added to the full maturity value of United States War-Savings Certificates, of the same series, of. whatever issue or denomination, held by such person in his own name and the sum must not exceed $1,000 (maturity value). VL TREASURY SAVINGS ^CERTIFICATES ISSUED TO TWO PERSONS. Treasury Savings Certificates may be issued and registered in t h e ' names of two persons (but not more than two) in the alternative, as, for instance, " J o h n Jones OR Mary Jones." Such certificates will be payable to either person named th^ereon without requiring the signature of the other person and to the survivor of them without proof of the other person's death, and upon payment to either person the other shall cease to have any interest therein. No other form of certificate in the names of two persons is authorized, except to the extent permitted by Paragraphs V and I X of this circular. When certificates are issued in the alternative, the names and addresses of both persons shall be inscribed on the certificates and on the registration stubs. In determining whether the $1,000 limitation on the holdings of a single person has been exceeded, the full maturity value of United Stated War-Savings Certificates of any one series, of. whatever issue or denomination, held with any other person shall be added to the full maturity value of such certificates held individually, and the sum must not exceed $"1,000 (maturity value) of the same series. 330 REPORT ON THE FINANCES. . - ^ VIL INFANT H 0 L D F ; R S OF TREASURY SAVINGS CERTIFICATES. 1. Treasury Savings Certificates may be issued and registered in the name of an infant. 2. If a guardian of the property has, to the knowledge of the Secretary of the Treasury, oeen appointed for an infant owner of a Treasury Savings Certificate, payment of the certificate will be made only to such guardian, upon presentation of proof satisfactory to the Secretary of the Treasury of his appointment and qualification. 3. If an infant holder of^a Treasury Savings Certificate for whom no such guardian has been appointed to the knowledge of the Secre. tary of the Treasury is, at the time payment of such certificate is demanded, of sufl&cient competency and understanding, in the opinion of the Secretary of the Treasury, to sign his name to the demand and to comprehend the nature thereof,- payment will be made directly to such infant owner. In the event that such infant is not, in the opinion of the Secretary of the Treasury, of such competency and understanding, payment will be made to either parent of the infant with whom the infant resides, or, in the event that such infant resides with neither parent, then to the person with whom such infant resides. In making demand for payment, the representative shall sign the infant's name as well as the name of such representative. 4. Issuance of a duplicate for, or payment of, a lost, stolen, or destroyed certificate which has been registered in the name of an infant will be to the infant or to a representative, ^as hereinbefore provided, upon compliance with the regulations respecting lost, stolen, or destroyed certificates. VIII. DISABILITY OF HOLDERS OF TREASURY SAVINGS CERTIFICATES. 1. Treasury Savings Certificates held by persons legally declared to be incompetent to manage their aflfairs, and for whose estate a conservator or other legally constituted representative has been appointed by a court of competent jurisdiction, to the knowledge of the Secretary of the Treasury, will be paid to such conservator or legal representative, upon presentation of proof satisfactory to the Secretary of the Treasury of his appointment and qualification. .2. Certificates held by persons under any other disability will be paid only to the registered owners of the certificates, except as herein otherwise provided. IX. REGISTRATION OF TREASURY SAVINGS CERTIFICATES IN BENEFICIARY. FAVOR OF 1. Treasury Savings Certificates may be issued and registered payable to a single designated beneficiary in case of death of the registered owner, as, for instance, " J o h n Smith, payable on death to Mary Smith." In that event the issuing iigent shall at the time of issue inscribe on the certificate and on the registration stub the SECRETARY OF THE TREASURY. - 331 words "Payable on death to ^," inserting the name and address of the beneficiary. Such certificates will be payable to the registered owner during his or her lifetime, and to the: beneficiary upon death of the owner, provided the beneficiary be then living. If the beneficiary shall predecease the registered owner, the certificate will be Say able to the owner as though such beneficial registration had not een made. Second registration in favor pf another beneficiary, or change of beneficiary, will not be permitted. 2. Should the beneficiary die after the death of the registered owner, but before payment of the certificate, the regulations covering payment of certificates held by a deceased owner shall govern the payment of the certificate as though. the beneficiary were such a deceased owner. X. PAYMENT OP TREASURY SAVINGS CERTIFICATES HELD BY DECEASED OWNER. In the case of the death of the owner of a Treasury Savings Certificate (other than a certificate registered payable to a beneficiary), payment will be made to the persons and in the manner hereinafter provided: 1. If the decedent leave a will which is duly admitted to probate, or die intestate and the estate of such decedent is administered in a court of competent jurisdiction, payment of such certificate will be made only to the duly appointed representative of the estate. Administration will be required before payment of a Treasury Savings Certificate will be made in all cases where the gross personal estate of the deceased owner exceeds $500 in value, unless it is shown by proof satisfactory to the Secretary of the Treasury that administration of the estate of such decedent is not required in the State of the decedent's domicile. 2. In case no legal representative of the decedent's estate is appointed and either the gross personal estate does not exceed $500 in value or it is shown by proof satisfactory to the Secretary of the Treasury that administration of the estate of such decedent is n o t . required in the State of the decedent's domicile, the certificate will be paid to and on .the demand of persons equitably entitled thereto in the opinion of the Secretary of the Treasury, in the following order of classes: « First. Husband, wife, next of kin, or other person, who pays the reasonable funeral expenses, expenses of the last illness, or other preferred claims against the decedent's estate. Second. Creditor for funeral experises, expenses of last illness, or other preferred claims. Third. Husband, wife, or next of kin of the deceased, in the following order of preference: (1) Husband or wife; (2) Child or children; (3) Father; (4) Mother; (5) Any other of the next of kin of the deceased; provided, however, that nothing herein contained shall require the payment of a single certificate to more than one person. 332 REPORT ON THE FINANCES. XL SIGNING DEMAND FOR PAYMENT. Whenever, pursuant to these regulations, payment of a Treasury Savings Certificate is demanded by a person not the original owner thereof, the form of demand for payment appearing on the certificate need not be signed, but such person shall sign in the prescribed manner a form of demand for payment (L. & C. 278) which may be obtained on application to the Secretary of the Treasury, Division of Loans and Currency, Washington, and which shall be pasted on the certificate over the form of demand appearing thereon, substantially as follows: FORM OF D E M A N D FOR PAYMENT. The undersigned is the person entitled to payment of this certificate. Serial No • under the regulations prescribed by the Secretary of the Treasury, in place of .... , the original owner whose name is inscribed hereon, and hereby demands payment hereof. Said original owner (or his estate) does not hold United States WarSavings Certificates of any one series, of whatever issue or denomination, to an aggregate amount exceeding $1,000, maturity value. (Date.) (Signature of payee.) Personally appeared before me No. and street. Town or city State known or proved to me to be (Name.of payee.) .-- .of the original owner whose name is inscribed on said certificate, (State connection with original owner.) • ' and signed the above demand for payment, acknowledging the same to be his free act and deed. Witness my hand and official designation:. Dated.at ^ ,19 [SEAL.] . (Signature of attesting officer.) ' (Official designation.) XII. INHERITANCE TAXES. Payment of Treasury Savings Certificates will be made without any deduction for inheritance, estate, or transfer taxes on death of a deceased owner, either State or Federal, and no claim shall lie against the United States or any officer or employee thereof for failure to deduct or withhold any such tax. The person to whom payment of the certificate is made shall be liable for all such taxes, if any shall be due, and the lien thereof shall attach to the proceeds of the certificate in his hands. XIII. CHANGE OF NAME. In case the name of the owner of a Treasury Savings Certificate has since the issuance of the certificate been changed by marriage or by order or decree of court, the Secretary of the Treasury will accept the owner's demand for payment signed in the new name, as well as in the original name, upon being satisfied of the identity of theperson. SECRETARY OF THE TREASURY. •• X I V . • - 333 ' '• LIMITATION IN AMOUNT. . Under the provisions of section 6 of the act of Congress approved September 24, 1917, as amended, it is not lawful for any one person at any one time to hold United States War-Savings Certificates of any one series (of whatever issue or denomination) to an aggregate amount exceeding $1,000 (maturity value). As to each series, the issue of Treasury Savings Certificates and the issue of War-Savings Certificates are' included within the same series of United States War-Savings Certificates for the purpose of determining whether the limitation on the holdings of a single person has been exceeded. For further regulations governing holdings of United States War-Savings Certificates in excess of the legal limit, see Treasury Department Circular No. 178, dated January 15, 1920, as extended by Treasury Department Circular No. 215, dated December 15, 1920. XV. ADMINISTRATION. The adininistration of the foregoing regulations shall be in accordance with such forms and administrative regulations and instructions as the Secretary of the Treasury shall from time to time prescribe. The Secretary of the Treasury may in any case accept as sufficient proof of the identity or of the competency and understanding of the person making demand for payment, the fact that the form of demand tor payment has been signed in the presence of and duly certified by a United States postmaster, an executive officer of an incorporated bank or trust company or any other person duly desigriated by the Secretary of the Treasury for the purpose. The Secretary of the Treasury may make, from time to time, any further or supplemental or amendatory regulations which shall not modify or impair the terms and conditions of Treasury Savings Certificates issued in pursuance of the act of Congress approved September 24, 1917, as amended and supplemented. A. W. MELLON, Secretary of the Treasury. EXHIBIT 60. [Department Circular No. 228. Division of PubJic Moneys.] DISCONTIN^LTANCE OF T H E U N I T E D S T A T E S CINCINNATI, OHIO. SUBTREASURY AT TREASURY DEPARTMENT, O F F I C E OF THE SECRETARY, Washington, February 8, 1921. To all concerned: , \ 1. The Legislative, Executive, and Judicial Appropriation Act, approved May 29, 1920, provides in part as follows with respect to the discontinuance of the Subtreasuries of the United States: INDEPENDENT TREASURY. Section 3590 of,the Revised Statutes of the United States, as amended, providing for the appointment of an Assistant Treasurer of the United States at Boston, New York, Philadelphia, Baltimore, New Orleans, St. Louis, San Francisco, Cinciiina,ti, 334 . REPORT ON T H E FINANCES. and Chicago, and all laws or parts of laws so far as they authorize the establishment or maintenance of offices of such ^Assistant Treasurers or of Subtreasuries of the United States are hereby repealed from and after July 1, 1921; and the Secretary/of the Treasury is authorized and directed to discontinue from and after such date, or at such earlier date or dates as he may deem advisable, such Subtreasuries and the exercise of all duties and functions by such Assistant Treasurers or their offices. The office of each Assistant Treasurer specified above and the services of any officers or other employees assigned to duty at his office shall terminate upon the discontinuance of the functions of that office by the Secretary of the Treasury. 2. By virtue of the authority vested in the Secretary of the Treasury under the provisions of the act above quoted, I hereby discontinue the Subtreasury of the United States at Cincinnati, Ohio, and the exercise of all duties and functions by the Assistant Treasurer of the United States at said Subtreasury, from and after the close of business on Thursday, February 10, 1921. Upon such discontinuance the office of the Assistant Treasurer of the United States at Cincinnati, and the services of any and all officers or other employees assigned to duty at his oflSce shall terminate in accordance with the statute. 3. The Secretary of the Treasury has made provision, pursuant to the authority conferred by said act approved May 29, 1920, to transfer the duties and functions performed or authorized to be performed by the Assistant Treasurer at Cincinnati, or his office, to the Treasurer of the United States and the Mints and Assay Offices of the United States, and will utilize the Cincinnati branch of the Federal Reserve Bank of Cleveland, Ohio, acting as depositary or fiscal agent of the United States, for the purpose of performing certain of such duties and functions. The Cincinnati branch of the Federal Reserve Bank of Cleveland will be prepared, on and after Thursday, February 10, 1921, to handle exchanges of United States paper currency and United States coin, pursuant to rules and regulations prescribed by the Secretary of the Treasury. Upon the discontinuance of the Subtreasury at Cincinnati outstanding gold certificates payable to order, issued by the Assistant Treasurer of the United States at Cincinnati, will be received for payment by the Cincinnati branch of the Federal Reserve Bank of Cleveland or the Treasurer of the United States at Washington. D. F . HOUSTON, Secretary ofthe Treasury. EXHIBIT 61. [Department Circular No. 213. Division of Public Moneys.] DISCONTINUANCE OF THE UNITED STATES SUBTREASURY AT NEW YORK, N. Y. TREASURY DEPARTMENT, O F F I C E OF THE SECRETARY, Washington, December 3, 1920. To all concerned: 1. The Legislative, Executive and Judicial Appropriation Act, approved May 29, 1920, provides in part as follows, with respect to the discontinuance of the Subtreasuries of the United States: INDEPENDENT TREASURY. Section 3595 of the Revised Statutes of the United States, as amended, providing for the appointment of an Assistant "^Treasurer of the United States at Boston, New York, Philadelphia, Baltimore. New Orleans, St. Louis, San Francisco, Cincinnati, and SECRETARY OF THE TREASURY, 335 Chicago, and all laws or parts of laws so far as they authorize the establishment or maintenance of offices of such Assistant Treasurers or of Subtreasuries of the United States are hereby repealed from and after July 1, 1921; and the Secretary of the Treasury is authorized and directed to discontinue from and after such date or at such earlier date or dates as he may deem advisable, such Subtreasuries and the exercise of all duties and functions by such Assistant Treasurers or their offices. The office of each Assistant Treasurer specified above and the services of any officers or other employees assigned to duty at his office shall terminate upon the discontinuance of the functions of that officeby the Secretarj^ of the Treasury. 2. By virtue of the authority vested in t h e S e c r e t a r y of the Treasury under the provisions of the act above quotecl, I hereby discontinue the Subtreasury of the United States at New York, N. Y., and the exercise of all duties and functions by the Assistant Treasurer of the United States at said Subtreasury, from and after the close of business on Monday, December 6, 1920. Upon such discontinuance the oflGice of the Assistant Treasurer of the United States at New York and the services of any and all officers or other employees assigned to duty at his ofl&ce shall terminate in accordance with the statute. 3. The Secretary of the Treasury has made provision, pursuant to the authority conferred by said act approved May 29, 1920, to transfer the duties and functions performed or authorized to be performed'by the Assistant Treasurer at New York, or his office, to the Treasurer of the United States and the Mints and Assay Offices of the United States, and will utilize the Federal Reserve Bank of New York, acting as depositary or fiscal agent of the United States, for the purpose of performing certain of such duties and functions. The Federal Reserve Bank of New York will be prepared on and after December 7, 1920, to handle exchanges of United States paper currency and United States coin, pursuant to rules and regulations prescribed by the Secretary of the Treasury. Upon the discontinuance of the Subtreasury at New York, outstanding gold certificates payable to order, issued by the Assistant" Treasurer of the United States at New York, will be received for payment by the Federal Reserve Bank of New York or the Treasurer of the United vStates at Washington. D. F. HOUSTON, Secretary of fhe Treasury. EXHIBIT 62. [Department Circular No. 219. Division of Public Moneys.) DISCONTINUANCE OF THE UNITED STATES SUBTREASURY AT SAN FRANCISCO, CALIF. TREASURY DEPARTMENT, O F F I C E OF THE SECRETARY, Washington, December 16, 1920. To all concerned: 1. The Legislative, Executive and Judicial Appropriation Act, approved May 29, 1920, provides in part as follows, with respect to the discontinuance of the Subtreasuries of the United States: INDEPENDENT TREASURY. Section 3595 of the Revised Statutes of the United States, as amended, providing for the appointment of an Assistant Treasurer of the United States at Boston, New York, Philadelphia, Baltimore, New Orleans, St. Loiiis, San Francisco, Cincinnati, and Chicago, and all laws or parts of laws so far as they authorize the establishment or maintenance of offices of such Assistant Treasurers or of Subtreasuries of the United 336 - . REPORT ON T H E FINANCES. States are hereby repealed from and after July 1, 1921; and the Secretary of the Treasury is authorized and directed to discontinue from and after such date or at such earlier date or dates as he may deem advisable, such Subtreasuries and the exercise of all duties and functions by such Assistant Treasiirers or their offices. The office of each Assistant Treasurer specified above and the services of any officers or other employees assigned to duty at his office shall terminate upon the discontinuance of the functions of that office by the Secretary of the Treasury. 2. By virtue of the authority vested in t h e . Secretary of the Treasury under the provisions of the act above quoted, I hereby discontinue the Subtreasury of the United States at San Francisco, Calif., and the exercise of all duties and functions by the Assistant Treasurer of the United States at said Subtreasury, from and after the close of business on Monday, December 20, 1920. Upon such discontinuance the office of the Assistant Treasurer of the United States at San Francisco and the services of any and all officers or other employees assigned to duty at his office shall terminate in accordance with the statute. 3. The Secretary of the Treasury has made provision, pursuant to the authority conferred by said act approved May 29, 1920, to transfer the duties and functions performed or authorized to be performed by the Assistant Treasurer at San Francisco, or his office, to the Treasurer of the United States, and the Mints and Assay Ofl&ces. of the United States, and will utilize the Federal Reserve Bank of San Francisco, acting as depositary or fiscal agent of the United States, for the purpose of performing certain of such duties and functions. The Federal Reserye Bank of San Francisco will be prepared on and after December 21, 1920, to handle exchanges of United States paper currency and United States coin, pursuant to rules arid regulations prescribed, by the Secretary of the Treasury. Upon the discontinuance of the Subtreasury at San Francisco, outstanding gold certiJficates payable to order, issued by the Assistant Treasurer of the United States at San Francisco, will be received for payment by the Federal Reserve Bank of San Francisco or tho Treasurer of the United States at Washington. D. F. HOUSTON, Secretary of the Treasury. EXHIBIT 63. [Department Circular No. 221. Division of Public Moneys.] DISCONTINUANCE OF THE UNITED STATES SUBTREASURY AT NEW ORLEANS, LA. TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, Washington, January 3, 1921.. To all concerned: 1. The Legislative, Executive, and Judicial Appropriation Act,, approved May 29, 1920, provides in part as follows, with respect to the discontinuance of the Subtreasuries of the United States: INDEPENDENT TREASURY. Section 3595 of the Revised Statutes of the United States, as amended, providing for the appointment of an Assistant Treasurer of the United States at Boston, New York, Philadelphia, Baltimore, New Orleans, St. Louis, San Francisco, Cincinnati, and Chicago, and all laws or parts of laws so far as they authorize the establishment or SECRETARY OF THE TREASURY. 337 maintenance of offices of such Assistant Treasurers or of Subtreasuries of the United States are hereby repealed from and after July 1, 1921; and the Secretary of the Treasury is authorized'and.directed to discontinue from and after such date or at such earlier date or dates as he may deem advisable, such Subtreasuries and the exercise of all duties and functions bj^ such Assistant. Treasur ers or their offices. The office of each Assistant Treasurer specified above and the services of any officers or other em, ployees assigned to duty at his office shall terminate upon the discontinuance of the functions ol' that office by the Secretary of the Treasury. 2. By virtue of the authority vested in the Secretary of the Treasury under the provisions of the act above quoted, I hereby discontinue the Subtreasury of the Uriited States at New Orleans, La., and the exercise of all duties and functions by the Assistant Treasurer of the United States at said Subtreasury, from and after the close of business on Wednesday, January 5, 1921. Upon such discontinuance the office of the Assistant Treasurer of the United States at New Orleans, and the services of any and all ofl&cers or other employees assigned to duty at his office shall terminate in accordance with the statute. 3. The Secretary of the Treasuryhas made provision, pursuant to the authority conferred by said act approved May 29, 1920, to transfer the duties and functions performed or authorized