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ANNUAL REPORT OF THE
Secretary of the Treasury
ON
THE STATE OF THE
FINANCES
FOR THE FISCAL YEAR
ENDED JUNE 30
'
1922
With Appendices
WASHINGTON
GOVERNS-NT PRINTING OFFICE
11923
T R E A S C R Y DEPARrMENT,
Document No. 2913.
Secretary.
CONTENTS
R E P O R T OP THE
S E C R E T A R Y OF THE
TREASURY:
,
Pag®»
Introduction
,
Refunding the short-dated debt
1
Treasury notes
:
Treasury bonds of 1947-1952
Retirement of Victory notes
Treasury certificates of indebtedness
'
The remaining short-dated debt
Approaching public-debt maturities
Economy in Government expenditure
Taxation and r e v e n u e - . . . : . . . . . . .
:
Revision of the surtaxes
Capital gains and losses
^
•.,
'
Exchanges of securities
•
Tax-exempt securities
Administrative changes.
No additional t a x e s . . .
.....
....
Obligations of foreign governments
Austrian relief
-World War Foreign Debt Commission
..
Bureau of Internal Revenue
i
Prohibition and narcotic enforcement
Customs.
.
...-....;;
The domestic credit situation.
-.
The War Finance Corporation and its operations
Agricultural credits
............
Federal farm loan system.
'.
Condition of Federal land b a n k s . . . . . . . .
Joint stock land b a n k s . :
...1...
;
Farmers' seed-grain loans
i
•.
Public debt transactions-...
c—
>.
Cumulative sinking fund,
Five p.er cent bond-purchase fund
:
:
Bonds purchased from franchise tax paid by Federal reserve b a n k s . . .
Bonds purchased from repayments of foreign loans
Bonds and notes retired on iniscellaneous a c c o u n t s — . i
.
Treasury notes and certificates of indebtedness
Government savings securities
Increase in price of Treasury savings certificates
Redemption and exchange of 1918 war-savings certificates
Market prices of Liberty bonds and Victory notes
Deposits of Government funds
—
, . Securities owned by the United States Government
.*
Railroads
Section 204...:.
:
...
Section 209
Section 210
Checking accounts of Government corporations and agencies
Gold
Silver
The mints
Soldiers' bonus...
. .^
......
Hospitalization.
.-.
.* .
Public h e a l t h . . . . . . . . . ; . . . . . . .
........«:..
-
III
c>
1
3
3
4
6
7
8
9
10
11
12
14
14
15
17
17
18
23
2-4
27
31
31
32
37
40
41
41
43
43
44
45
45
46
46
47
47
51
56
57
58
60
64
67
67
67
68
69
70
73
74
74
75
78
ly
CONTENTS.
R E P O R T OF THE SECRETARY OF THE TREASURY—Continued.
'
Public buildings
:...
National Archives Building
;
Contractors' war claims
Post-office buildings
...
Bureau of War Risk Insurance.
Soldiers' and sailors' civil relief bonds
The Coast Guard
Bureau of Engraving and Piinting.
New currency designs...."
Inter-American High Commission..'.
,
District of Columbia teachers' retirement fund
United States Government life insurance fund
Civil-service retirement and disability f u n d . .
Surety b o n d s . . . . . . . . . " .
-.. •....
Treasury organization
" .."
.'.
Budget and Improvement C o m m i t t e e . . . . . . . . . . . . 1 . . . "
Bureau of S u p p l y . . . . . . . . . ! . .
•....:
General Supply Committee
Personnel
-.
.,
.......
Retirement of civil service employees
Admission to practice before the Treasury Department
Panama Canal..
.---••-.
Finances
.,
.,
Condition of the Treasury June 30, 1922
:...
Receipts and expenditures, on cash b a s i s . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receipts and, expenditures, on warrant basis
Estimates for 1924 and appropriations for 1 9 2 3 . . . . . . i
•..
Page.
79
80
80
81
81
81
82
84
84
84
§5
85
86
87
88
88
90
91
92
93
94
95
96
96
99
107
122
Exhibits accompanying the report on the finances.
E x h i b i t 1: Statement of the pubUc d e b t of t h e U n i t e d States J u n e 30,1922.
126
E x h i b i t 2: Preliminary statement of the public debt October 31, 1 9 2 2 . . . .
131
Exhibit 3: Liberty bonds, Victory notes, Treasury notes, and certificates of
indebtedriess outstanding (including issuable b u t undelivered securities),
b y denominations, J u n e 30, 1922
...,,........, -.........
132
Exhibit 4: Registered Liberty bonds and Victory*notes outstanding and interest payable, fiscal year ended J u n e 30,1922
134
Exhibit 5: Issues and retirements of pre-war loans,- unmatured, fiscal year
ended J u n e 30, 1922.
..:
135
E x h i b i t 6: Issues and retirements, first Liberty loan, fiscal year ended J u n e
30,1922
o.:....
137
E x h i b i t 7: Issues and retirements, second Liberty loan, fiscal year end^d
J u n e 30, 1922.
,.......-.......:........
139
E x h i b i t s : Issues and retirements,«third and fourtb Liberty loans, fiscal
year ended J u n e 30, 1922
140
Exhibit 9: Issues and retirements, Victory Liberty loan, fiscal year ended
J u n e 30, 1922
»... , 142
E x h i b i t l O : Treasury notes issued, retired, and outstanding, fiscal year
1922...
.;
14a
Exhibit 11: Loan and tax certificates of indebtedness issued, retired, and
outstanding, fiscal year 1922
144
Exhibit 12: Issues and retirements of Treasury (war) savings .securities,
fiscal year ended J u n e 30, 1922
i.
145
Exhibit 13: Liberty bonds. Victory notes. Treasury notes, and certificates
of indebtedness delivered and retired during the fiscal year 1922 and
outstanding on J u n e 30, 1922
„.
146
Exhibit 14: Retirements of pre-war loans, matured, fiscal year ended June
30j 1922
148
Exhibit 15: Issues and retirements of debt bearing no interest, fiscal year
ended J u n e 30, 1922
,.
148
E x h i b i t 16: Public debt of the United States, recapitulation of issues and
retirements, fiscal year ended J u n e .30, 1922
..
14^
Exhibit 17: Liberty bonds, Victory notes. Treasury notes, and ciertificates
of indebtedness issued and retired during fiscal year 1922 and outstanding on J u n e 30, 1922, by denominations
,
152
Ut'J'1 • • 0
'
CONTENTS.
R E P O R T OF THE SECRETARY OF" THE TREASURY—Continued..
y
.
Exhibit 18: Liberty bonds. Victory notes. Treasury notes, and certificates
of indebtedness received and delivered during^the fiscal year 1922 and
on hand on June 30, 1922,. by ' d e n o m i n a t i o n s . . : . . . . . . .
^.........:.
Exhibit 19: Liberty bonds and Victory notes, denominational exchanges
of coupon bonds showing net increases and decreases from April 6, 1917,
to June 30, 1922.
'
:........:.,..
Exhibit 20: Liberty bond and Victory note conversions from November
15, 1917, t o J u n e 30, 1922
:. 1 ..•....,....:.:...,...•.. i
Exhibit 21: .Recapitulation, of Libei'ty bonds and Victory notes issued,and .
retired from April 6, 1917, to June ^30, 1922,.and amo.unt outstanding
June 30, 1922
1:
I...............:......
.:
Exhibit 22: Loan and tax certificates of indebtedness issued through each
Federal reserve bank from July 1,:1921, to October 31, 1 9 2 2 : . . . .
...
Exhibit 23: Loan and tax certificates of indebtedness issued through each
Federal reserve bank from April 6,' 1917, to October 31, 1922..:
:..
Exhibit 24: Treasury notes issued through each Federal reserve bank
and the Treasury Department from June 15, 1921, to Octpber 31, 1922./
Exhibit 25:- Treasury bonds of, 1947-52, subscriptions and allotments, by
Federal reserve districts..
...,.....;..'
.....,......';...........
.•
Exhibit 26: Brief description of Liberty bonds and Victory vuotes. . . . . . . .
E x h i b i t 27: Brief description of Treasury bonds,- notes, certificates of indebtedness, and savings c e r t i f i c a t e s . . . . . . . . . . . . . . . . , , . t . . . ' . , : . . . . . : . .
Exhibit 28: Department Circular No. 307, F o u r a n d one-quarter per cent'
Treasm-y bonds of .1947-52, etc...'
-.-.-->
... - --• - - . . . . . . . . >.
Exhibit 29: Letter of Secretary of the Treasury, dated Octobeir 9, 1922,-to
banking institutions, .accompanjdng the offering of.4^ per cent Treasury
bonds of 1947-52, dated October 16,: 1 9 2 2 . . . . . . . . . . . . . . . ; . . . , . . i . . . . . . . . . . ;
Exhibit 30.: Form P . D. 736., application for 4^. per cent Treasury .bonds
of 1947-52.
1,.......,
• E x h i b i t 31: Letter of Secretary ^of the Treasury to holders of Victory notes,
accompanying the offering of 4^ per centrTreasury. bonds of 1947-52, ,^
dated October 16, 1922
E x h i b i t 32: Department Circular No. 277. Redemption of 3 | ' p e r cent
Victory notes before maturity
.......
Exhibit 33: Supplement to Department Circular No. 277 of February 9,
1922. Redemption of 3f per cent Victory notes before m a t u r i t y . .
,.
Exhibit 34: Department Circular No. 299. Partial redemption.of 4f per
cent Victory notes before maturity.
:.
,.............
Exhibit 35: Department Circular No. 276. Four ,and three-quarters per
cent Treasury notes, series A-1925
..:.....-.
Exhibit 36: Department Circular No. 280. Four and. three-quarters per
cent Treasury notes, series A-1926 . :
Exhibit 37: Department Circular No. 292; Four and three.-eighths per
cent Treasury notes, series'B.-1925
...
E x h i b i t 3 8 : Letter of Secretary of the Treasury to holders of'41 per cent
Victory notes accompanying the offering of Treasury notes of series
B-1925, dated June 15, 1922
,
Exhibit 39: Department Circular No. 298. Four and one-quarter per cent
Treasury notes, series B-1926..
.
...
..................
Exhibit 40: Letter of Secretary of the Treasury, dated July 26, 1922, to
banks and trust companies, accompanying the offering of Treasury
notes of series B-1926, dated August 1, 1922.
Exhibit 41: Third supplement to Department Circular No. 141 of September 15, 1919. Supplemental .rules and regulations concerning transactions in Liberty bonds and Victory n o t e s . . . - , :
Exhibit 4.2: Supplement to Department Circular No. 225. Receipt.of
Liberty bonds. Victory notes, and Treasury notes for estate or inheritance
taxes
Exhibit 43: Fourth supplement to Department. Circular No. 141 of S e p - /
tember 15, 1919. Supplemental rules and regulations concerning transactions in Victory notes
. . . . . . . ..
'..
Exhibit 44: Fifth supplement t o Department Circular No. 141 of .September 15, 1919. Suppleniental rules and .regulations concerning transactions in Liberty bonds and Victory motes.
.^
E x h i b i t 45: Department CJircular No. 288. Regulations in regard to lost,
stolen, destroyed, mutilated, and defaced United States bonds and notes.
Pajre-
154
155
157
158
160
.162
163
164
165
167
-168
171 ^
173
174
175
179
179
184
185
187
188
189 .
191
193
194
195
196
196
VI
CONTENTS.
REPORT OF THE SECRETARY OF THE T R E A S U R Y — C o n t i n u e d .
Page.
Exhibit 46:'Department Circular No. 268. Treasury certificates pf indebtedness dated and bearing interest from December 15, 1921
205
Exhibit .47: Department Circular No. 279. Four a n d . one-quarter per
cent Treasury certificates oi i n d e b t e d n e s s . . . . . . :
• 206
Exhibit 48: Department Circular No. 285. Three and one^half per cent
Treasury certificates, of. indebtedness
.....'..
;
207
E x h i b i t 4 9 : ' D e p a r t m e n t Circular No. 291.' Three and one-ha;lf .per cent
Treasury certificates of indebtedness
'.
...........
209
Exhibit 50: Department Circular No. 293. Three and three-quarters per
cent • Treasury certificates of indebtedness
:
210
•Exhibit 51: Department .Circular No. 306. Three and three-quarters per
cent Treasury certificates of indebtedness I. J . . . .
212
'
Exhibit 52: Offer to redeem before maturity. Treasury certificates of indebtedness, Series TD-1921.
,... i .^ . : . . - . . . . . . : • .
213
- .. Exhibit 53: Offer to'redeem before maturity; Treasury certificates of indebtedness, Series A-1922.,
:.:..
'.213
'- Exhibit 54: Offer to redeem before-maturity. Treasury certificates of indebtedness;'^ Series TM-19.22, TM2-1922, and T M 3 - 1 9 2 2 . . . . . . . . . . . . . : . . . . , ' 213
Exhibit 55:- Offer to redeem before maturity, Treasury certificates of indebtedness, Series C-1922..........:.»
:-i.-..
;
214
Exhibit 5(3:* Offer to redeem before maturitv, Treasurv certificates of indebtedness, SeriesTJ-1922 and T J 2 - 1 9 2 2 ' . . . . . . . . . : . . : . . . . . :
........
211
Exhibit 57: Offer to redeem before maturitv.. TreasuVv certificates of indebTtedn.ess, Series B - 1 9 2 2 . . . . . . . . . . . . . . ' . . : . . . . . . . . . . ' . i
214
Exhibit 58: Offer to redeem before maturity. Treastirv certificates of indebtedness, Series TS-^1922 and T S 2 ^ 9 2 2 . . : i . v..:. . . J . . . . . . .:•':
:
214
' E x h i b i t ' 5 9 : Offer to redeem before maturity, Treasury certificates of in,_ .
debtedness. Series D-1922 . . . . . . . . . . . : . - . . . . . . . . . . . . " ' . . . . . . . .
:
214
^ ' ' Exhibit 60: Offer to redeem before maturity, Treasury certificates of in^
'debtedness, Series TD-1922 and TD2-^1922;
;..:
215
Exhibit 61:" Department Circular No. 270^ Treasiiry savings certificates,
new issue
.-.^
-.
.'
• . . . . . . . : . : . ' 215
Exhibit 62: 'Department Circular No. 3011 New offering of Treasury
savings certificates
..-..,..
- - •. / - - - - - - - - . - . - - - - . . -: - 224
Exhibit'63:.Department Circular No.'308.- Redemption and exchange of
K
war-sayings' certificates, series of 1918
.".
233
E x h i b i t 64": "Letter of Secretary of tiie -Treasury, dated Noveihber 13,1922,
to banks and trust companies as to redemption and exchange of warsavings certificates of the series'of 1918..;... . . . . . . . . . . . : • . . . . .
..'....
236
Exhibit 65: Form of request for redemption or exchange of war-savings
certificates, series of 1918'il'
.....'..-.'.'.:
..:
238
Exhibit 66: Placard relating to the exchange of war-savings certificates for
new Treasury savings certificates'.. V.\ . . . . . . . . . . : . . .
'
240
Exhibit 67: Supplement to Department Circular No. 178 of Janiiary 15,
1920, Holdings of United States Treasury (war) savings certificates in
excess of legal l i m i t : . . :
241
Exhibit 68: Department Circular No. 271. Surrender of war-savings certificates" and stamps, series of 1921, Treasury savings certificates, series of
1921, Treasury savings starnps, and thrift stamps'held by authorized
agents and sales stations . . . . ' .
242
Exhibit 69: Department Circular ;No.' 149.. revised'. Regulations concerning United States Treasury savings certificates
246
Exhibit 70: Department Circular No: 302. Surrender of Treasury savings certificates, new "issue. Treasury savings stamps, and Treasury
8a\dngs cards held by authorized" agents.
-.
265
Exhibit 71: Cash expenditures of the Government for thefiscal years 1917
to 1922, inclusive, as'publishe^d in daily Treasury stateraents, classified
according to departments and establishments. . . . . 267
Exhibit 72: Ordinary receipts "and expenditures chargeable against ordinary receipts from April 6, 1917, to October 31, 1922, on the basis of
daily Treasury statements.
'.
:
270
Exhibit 73: Payments to carriers from November 16,1921, to November 15,
1922, inclusive, provided for in section 204 of the transportation act
of 1920, as amended,; for reirnbursementof'deficits'on^account of Federal,
c o n t r o l ' . . . . . . . : . . . . : . . . , . . - . . . . . . . . : . : . : ..v:...- . . . : ^ ; . ; . . . . . . ' . . . : . . . : .
272
CONTENTS.
R E P O R T OF THE SECRETARY OF THE T R E A S U R Y — C o n t i n u e d .
Vll
Pago.
Exhibit 74: Payments to carriers from November 16,1921, to November 15,
1922, inclusive, under the guaranty provided for in section 209 of the
transportation act of 1920, as amended
-Exhibit 75: Loans to carriers under. section 210 of the transportation act of
1920, as amended, and repayments on. such loans from November 16,
1921, to November 15, 1922, inclusive, with loans outstanding November 15, 1921, and November 15, 1922
. E x h i b i t 76: Securities owned by the United States Government
„•
Exhibit 77: Obligations of foreign governments held by the United
States, together with interest accrued and remaining unpaid thereon as
of the last interest period prior to or ending with November 1 5 , 1 9 2 2 . . ,
Exhibit 78: Specimen of obligation of Austria
Exhibit 79: Letter from the Secretary of State concerning the liquidation
of Russian obligations in the United States, and the reply of the Secretary of the Treasury
Exhiioit 80: Department Circular No. 154, revised. Acceptance of United
States bonds and notes as security in lieu of surety or sureties on
penal b o n d s . . . . - . . . E x h i b i t 81: Department Circular No. 230. Laws and regulations governing ^
t h e recognition of attorneys, agents, and other- persons representing
claimants and others before the Treasury Department and oflS^ces thereof.
E x h i b i t 82: Department Circular No. 297. Regulations applicable to
surety companies doing business with the United States under the act
of Congress approved August 13, 1894, as amended by the act of Congress of March 23, 1910 . . . .
E x h i b i t 83: Department Circular No. 283. ..Orderestablishing centralized
purchasing for the Treasury Department
E x h i b i t 84: Order supplementing Circular No. 283, establishing centralized
purchasing for the Treasury Department
E x h i b i t 85: Letter of the Secretary of the Treasury appointing a Budget
and Improvement Committee for the Treasury Department
E x h i b i t 86: Number of employees in the Treasury Department in Washington, bymonths, from July 31, 1921, to September 30, 1922, inclusive.
E x h i b i t 87: Letter of the Secretary of the Treasury relative to tax-exempt
. securities, January 16, 1922
E x h i b i t 88: Executive order transferring certain hospitals from the Public
Health Service to the Veterans' Bureau
Exhibit 89: Hospitals completed and in course of construction November
^ 13, 1922
E x h i b i t 90: Letter from the Secretary of the Treasury to the chairman of
the Committee on Ways and Means, January 24,1922, with respect to
soldiers' bonus
E x h i b i t 91: Letter fromthe President to the chairman of the Committee
on Ways-and Means, dated February 16, 1922, with respect to soldiers'
bonus
:.
E x h i b i t 92: Letter from the Secretary of the Treasury to the chairman of
the Committee on Ways and MeansJ March 11, 1922, with respect to
soldiers' bonus
'
E x h i b i t 93: Message of t h e President vetoing H. R. 10874, a bill " t o
provide adjusted compensation for the veterans of the World War, and
for other purposes "
E x h i b i t 94: Department Circular No.- 108, revised. Regulations further
defining rights of holders of war-savings certificates
.'
E x h i b i t 95: Department Circular No. 310. Redemption and exchange
of Treasury savings certificates, series of 1918
E x h i b i t 96: Department Circular No. 176 amended and supplemented.
Regulations governing deposit of public- moneys and payment of Government warrants and checks..
:
273
275
277
281
282
283
287
298
308
313
314
316
317
318
325
328
329
339
340
347
351
358
362
Abstracts of reports of bureaus and divisions.
Treasurer of the United States
1......-.
Comptroller of the Currency.,
isTationaLlpiank charters.
--•.-•- -.
: -.
.- - -^- - • Number "of 'riatibhaT bariks organized, consolidated under act,of Noveniber 7, 1918, etc., June 30, 1922
.............:..
383
385
^85
39a
VIII
CONTENTS.
R E P O R T OF THE SECRETARY OF THE T R E A S U R Y — C o n t i n u e d .
Comptrollei' of the Currency—Continued.
Principal items of resources and liabilities of national|banks, June
30, 1922, compared with June 30, 1921
Banks other than national
All reporting banksi principal resources, and .liabilities
,..
Number, capital, and assets of national banks, and all reporting
banks on June 30, 1922.
• Comparative statement. showing number of banks, loans, lawful reserve, total deposits, etc
Comparative statement of growth in resources of national and .State
banking institutions for 5-year p e r i o d . . . . . . . . .
•..
:..;.....
Mint Service;.
.
: '.;
-s,
vInstitutions of the Mint Service
,
Coin deinand
-.
Gold operations-.
.......
Silver operations
.
Refineries
:....-.
N e ^ coin designs
,
^ Coinage.
,
.;
Stock of coin and bullion in the United States
Production of gold and. silver
Industrial arts
.:.....
Imports of gold coin..•..*.
: - >. - -•- - - Appropriations, expenses, and income.
,
Deposits, income, expenses, and employees, by .institutions, fiscal
year 1922
^
.............;...;..
Bureau of Internal R e v e n u e . . . . . [
.,........
.....
Cost of administration
,--.,.
Income and profits taxes..
......................Committee on appeals and*review...'.
Sales taxes.
,-.- -Capital stock t a x " . . . ,
...
..,;.Estate t a x . . . . . .
Tobacco
:......
Oleomargarine..
..........-.
Mixed
flour
,..,. j
,....--...;.....
. Accounts and collections u n i t . . .
J
Solicitor's office
N ational. prohibition.
-.
,
Bureau and field personnel
.......
Bureau of Engraving and Printing
Customs.
Customs Special Agency Service
,....—
-.
Office of Supervising Architect
Public Health Service
....,...,.,,
,......-.
. Scientific research
•.. :
,
Domestic quarantine (interstate sanitation)
Foreign and insular quarantine,and immigration.
Sanitary reports and statistics.
Hospitals and r e l i e f . . . :
Venereal disease c o n t r o l . . . . . . .
'.
General inspections
Public Health, library.
, Purveying depots
Personnel and accounts.
t
Coast Guard
.^
Ice patrol to promote safety at sea
Winter cruising
Cruises in northern waters.
Anchorage and movements of vessels-.
Removal of derelicts
:
Coastal communication
Coast Guard Academy
Coast Guard repair depot
New vessels.
'.-.
Stations
Page.
392
393
393
394
396
397
397
397
397
398
398
398
399
399
400
400
40O
400
400
403
403
404
405
. 405
405
406
406
406
407
407
407
408
408
409
409
410
412
413
418
418
419
419
420
420
421
422
. 422
422
. 422
424
425
425
425
426
426
426
427
427
427
428
CONTENTS.
R E P O R T OF THE SECRETARY OF THE
0
IX
TREASURY—Continued.
Coast Guard—Continued.
i*aseEnforcement of customs and other laws...
:5
428
Repairs and improvements to vessels and stations
428
Discipline
.' - .
428
Flood work
428
Award of life-saving medals
429
Personnel
T.. .•
430
Units...:
,...-.
430
Loans and Currency
430
Claims on account of lost, stolen, mutilated, or destroyed interestbearing securities, etc
.
-.
431
Insular and District of Columbia loans, changes during fiscal y e a r . . . . .
432
Circulation.
.s......
433
Division of Paper Custody
.......:...:
.'
436
Custody of Federal reserve notes, series of 1914 and 1918.
437
Register of the Treasury
437
Retired securities received, examined, and filed in the register's
ofiice, fiscal years 1921 and 1922:
438
Division of Deposits
439
General and limited national-bank depositaries of public moneys . . . . .
440
Special depositaries of public moneys
440
Foreign depositaries of public moneys
. . . . . . . . . . . 1...:
.
441 •
Deposits in Federal land banks
.'
441
Division of Bookkeeping and Warrants
,
^
' 441
General fund
•.
.'
442
Alien Property Custodian ac"count
4:3
Purchase of farm-loan b o n d s . . . :
:
, 443
Civil-service retirement and disability fund
444
Secret Service Division.
444
Division of Printing and Stationery
445
Printing and binding
445
Stationery..
1.........
445,
Postage and materials for bookbinder
^^
446
Approi)riations, expenditures, and reimbursements for printing a n ^
binding and stationery
:
447
Department advertising
.;
446
Disbursing clerk
......
450
General Supply Committee
451
Tables accompanying the report on the finances.
Tafcle A.—Public debt of t h e United States outstanding June 30, 1 9 2 2 . . . .
Table B.—Principal of t h e public debt at t h e end of each fiscal year from
1853 to 1922, exclusive of gold certificates, silver certificates,
currency certificates, and Treasury notes of 1890 . . . . . . . .
Table C.—Liberty bonds and Victory notes outstanding, from J u n e 30,
1919, to August 31, 1922, classified by denominations.
....
Table D.—Liberty bonds and Victory notes, ratio of amount of each
denomination to total outstanding, from J u n e 30, 1919, to
August 31,1922.
Table E.—United States interest-bearing debt outstanding at end of each
month, from F e b m a r y 28, 1917, to August 31, 1922
Table F.—Public debt transactions from July 1, 1921, to June 30, 1922 . . .
Table G . ^ I s s u e s of certificates of ind'ebtedness from April 6, 1917, to
October 31, 1922....
Table H.—Condition of t h e United States Treasury at t h e close of t h e
fiscal years 1920, 1921, and 1922...-.-.
Table I.—^Balance in t h e general, fundcOf the Treasury, b y calendar years
from 1791 to 1842, and by fiscal years frona 1843 to 1922
:.
Table J.—Appropriations, expenditures, amounts carried to surplus fund,
and unexpended balances for fiscal years 1885 to 1922
Table K.—Receipts and expenditures of t h e United States Government,
by fiscal years, from 1791 to 1922.
Table L.—Postal receipts and expenditures for t h e fiscal years 1791 to 1922.
Table M.—Sources of internal revenue, 1863 to 1922
458
465
467
468
-469
472
476
479
481
482
484
496
498
X
CONTENTS.
R E P O R T OF THE SECRETARY OF THE T R E A S U R Y — C o n t i n u e d .
Table N,—Internal-revenue receipts, by States and Territories, for t h e
fiscal years 1921 and 1922
Table 0.—Merchandise imported and customs duties collected from 1890
to 1921 and recapitulation from 1867 to 1921
Table P.—Receipts from customs, internal revenue, and sales of public
lands, collected in each Stiate and Territory, by fiscal years,
. from 1879 to 1922
Table Q.—Customs statistics, by districts, for t h e fiscal year 1922
Table R.—Stock of money in t h e United States, classified by kind, at t h e
end of each fiscal year from 1860 to 1889
Table S.—Stock of money in t h e United States, classified by kind, at t h e
end of each fiscal year from .1890 to 1922
Table T.^—Stock of money, money in circulation, and amount of circulation per capita in t h e United States from 1860 to 1922, inclusive . . . . . . . ;
-..'J
Pagt.
504
506
512
522
524
525
526
0
APPENDIX TO REPORT ON THE FINANCES.
R E P O R T OF THE T R E A S U R E R :
Receipts and expenditures for 1921 and 1922.
Panania Canal.
'
Receipts and disbursements on account of the Post Office Department^....
Transactions in the public debt
•Appropriation of the n e t earnings derived by the United States from t h e
Federal'^rfeservecbaivks
1..^
. Payment of obligations of foreign Governments purchased on behalf of the
United States
Cumulative sinking fuhd
Five per cent bond purchase fund:
._.........
Interest-beariag bonds and notes retired on miscellaneous accounts
Payment of interest on the registered bonds and not6s of the Uhited S t a t e s . .
Reserve fund
Statement of the Treasury of the United States.
General fund
Gold in the Treasury
^
Securities held in trust
Securities held to secure circulation issued b y Federal reserve banks
Special trust funds
.'
'.;...
Postal savings bonds and investments therein ..:.<7
Withdrawal of bonds to secure circulation
Lawful money deposited in the Treasury during the fiscal yeaf 1922 for the
redemption of national-bank notes
•.
=.
Depositaries of the United States.
.^
Public moneys in depositary banks.
Intetfest on public mpneys held by •depositary banks
:.
Gold fund. Federal Reserve Board.
United States paper currency issued and redeemed
United States paper currency prepared for issue and amount issued
Redemptions of paper currency
Pieces of United States paper currency outstanding.
Paper currency outstandmg, b y denominations
• Supply of LTnited States paper currency held in reserve
Redemption of Federal reserve and national currency
- - - -;
Shipments of currency from Washington
!
Deposits of gold bullion at mints and assay offices
:
Recoinage in the fiscal year 1 9 2 2 . . .
•
District of Columbia
General account of the Treasurer of the United States
531
533
533
534
-534
535
535
535
536
536
536
537
537
538
539
540
541
543
543
543
543
544
544
545
545
546
546
547
548
549
^^^
550
550
550
551
552
Tables accompanying report of the Treasurer.
No. 1.—General distribution of the assets and liabilities of. the Treasury,
June 30, 1922
»
No. -2.—^Available assets and n e t liabilities of the Treasury at the close of
June, 1921;and 1922 . . ; ; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • :
No. 3.—Distribution of the General Treasury balance, J u n e 30, 1922
555
556
557
CONTENTS.
R E P O R T OF THE TREASURER—Continued.
^
XI
"
Pag©.
No. 4.—Assets of the Treasury other than gold, silver, notes, and certifi
cates at the end of each month from J uly, 1920
No. 5.—^Assets of the Treasury at the end of each month from July, 1920.
No. 6.—Liabilities of the Treasurv at the end of each month from July,
1920
\
:
.\
No. 7.—United States notes of each denomination issued, redeemed, and
outstanding at the close of the fiscal years 1921 and 1922
No. 8.—Treasury notes of 1890 of each denomination redeemed and outstanduig at ^the close of the fiscal years 1921 and 1922
No. 9.—Gold certificates of ©ach denomination issued, redeemed, and
outstanding a t the close of the fiscal years 1921 a n d ; i 9 2 2 . . . . .
No. 10.—Silver certificates of - each denomination issuedy redeemed-, and
outstanding at the close of the fiscal years 1921 and 1922..
No. 11.—^Amount of United States notes. Treasury notes, gold and silver
certificates of each denomination issued, redeemed, and outstanding at the close of each fiscal year, from 1919
No. 12.—Old demand notes of each denomination issued, redeemed, and
outstanding June 30,1922
No. 13.—Fractional currency of each denomination issued, redeemed, and
outstanding J u n e 30, 1922
No. 14.—Compound-interest notes of each denomination issued, redeemed,
and outstanding June 30,1922
"
No. 15.—One and two year notes of each denomination issued, redeemed, and outstanding J u n e 30, 1922
No. 16.—Federal reserve and national,banks designated depositaries of public moneys, with the balance held June 30, 1922
No. 17.—Number of banks with semiannual duty levied, by fiscal years,
and number of depositaries with bonds as security, by fiscal
years . . . . . . . . . . . . . . ^ . : . . / . ' . . . .-1'-.
....'„
No. 18.—Seven-thirty notes recieeined a^jid outstanding June 30, 1 9 2 2 . . . . .
No. 19.—Refunding certificates, act of'FebrU^r'f' 26, 1879, redeemed and
outstanding, June 30, 1922
No. 20.—Checks issued by the Treasurer for interest on registered bonds
during the fiscal year 1922
,
:.
No. 21.—Interest on 3.65 per cent bonds of the District of Columbia paid
during the fiscal year 1922
No. 22.—Coupons from United States bonds, certificates, and notes paid
during the fiscal year 1922, classified by loans
:
No. 23.—Checks drawn by the Secretary and paid by the Treasurer for interest on registered bonds and notes of the United States during
the fiscal year 1922
No. 24.—Money deposited in the Treasury each month of the fiscal year
1922 for the redemption of national-bank notes and Federal
reserve bank notes
^
No. 25.—Amount of currency counted into the cash of the National Bank
Redemption Agency and redeemed notes delivered b y fiscal
years from 1916 to 1921, and by months during the fiscal year
1922
...v...:.....:.....No. 26.—Currency received for redemption b y t h e National Bank Redemption, Agency from the principal cities and other places, by fiscal years, from 1916, in thousands of dollars
.*
.
No. 27.—^Mode of payment for currency redeemed at the National Bank
Redemption Agency, by fiscal years, from 1916
No. 28.—Deposits, redemptions, assessments for expenses, and transfers
and repayments on account of the 5 per cent redemption fund of
national and Federal Teserve banks, b y fiscal years, from 1916.
No. 29.—Deposits and redemptions on account of the retirement of circulation, by fiscal years, from 1916
'.
-. - r No. 30.—Expenses incurred in the redemption of national and Federal reserve currehcy, b y fiscal years, from 1916
No. 31.—General cash account of the National B;ank Redemption Agency
forthe fiscal year 1922 and from J u l y 1, 1 8 7 4 . . . . . . ' . . . . . . ' . . . . . .
No. 32.—Average ampunt „of national-bank ^notea outstanding and the redemption', by fiscalyears, froiiii875 (the first'yeaf of the agency).
557
558
558
559
559
560
560
561
562
562
562
562
563
565
565
565
565
566
566
566
567
568 569
^
569
569
^70
570
571
571
XII
.
CONTENTS.
R E P O R T OF THE T R E A S U R E R — C o n t i n u e d .
No. 33.—Federal reserve notes, canceled and uncanceled, forwarded by Federal reserve banks and branches, counted and delivered to t h e
Comptroller of t h e Currency for credit pf Federal reserve agents.
No. 34.—Changes during t h e fiscal year 1922 in the force employed in the
Treasurer's office.
1.
.*
Page.
571
572
REPORT OF THE DIRECTOR OF THE M I N T :
Operation of the mints and assay offices.....573
Institution^.Pf the Mmt Service
573
Coin demand
1
573
Gold operations
:...'
'.
^
574
Silver operations
• - - -.
- 574
Deposits of gold, and silver
575
Refineries....
575
New coin designs....'
i
575
Couiage................^
••
576
Stpck of coin and bullion in t h e United States.
576
Production of gold and silver
'.
576
' Industrial arts
576
import of gold coins
576
Estimates for the fiscal year 1 9 2 4 —
576
Appropriations, expenses, and incorne
577
Additions and improvements
577
Income and expenses pf t h e fiscal year 1 9 2 2 . . . . . . . . . . . . . . . . . . . . . . - .
577
Deposits, income, expenses, and employees, b y institutions, fiscal year
1922....
:..-.
: 579
Coinage..
579
Deppsits.pf fpreign^ gpld., bullion and coin
580
Deposits.of.foreigiiYsilver bullion a n d coin.,.
581.
Issnps.of ifiiie-'gold-.bars^^^^ gold^'coin'and gpld bullion
5.82
Balances, receipts, and disbursements of gold bullion.
582
Purchase of minor coinage iiietal for use in domestic coinage
584
Distribution of minor coins.
•.
584
Minor coins outstanding
...584
Operations of the assay departments
'.
585
Operations of the melting and refining and of the coining departments,
fiscal year 1922..:
.'
585
Refining operations.
587
Ingot melts made
588
Fineness of melts for gold and silver ingots
588
Commercial and certificate bars manufactured
589
Ingots operated upon by coining departments and percentage of coin
produced
c
589
Bullion gains and losses
590
^ Wastage and- loss, on sale of sweeps
591
Engraving department
?
591
Medals manufactured
592
Medals sold
592
Progress of numismatic collection
593
Employees
593
Visitprs
:
593
Wprk of the.minor assay offices
J
593
Ore assays
594
Gold receipts at S e a t t l e . . . . ;
:
594
Laboratory of the Bureau of the Mint
595
Disease not carried b y coins.
596
Assay Commission's annual test of coin
,- - • 597
Tables, report of Director of the Mint
Q
598
R E P O R T OF THE R E G I S T E R :
Retired securities, canceled on account of reduction of principal of public
debt
.J
'.
.0.
\
Securities received for credit, to'fiscal agency account.
Destruction of retired securities
Interest coupons on
file
Securities prepared for issue; registered securities issued
Protection of securities.
:
645
646
646
647
647
647
CONTENTS.
XIII
REPORT OF THE R E G I S T E R — C o n t i n u e d .
Page.
Organization
1
-.
• 647
Functional apportionment
648
Office force
:
......— :.......'..
650
Summary of securities received, examined, and r e t i r e d . . . . . - . . . . . . . . . . . . .
651
Statistical statements.
.652
R E P O R T OF THE COMPTROLLER OF THE CURRENCY:
. . . .
Submission of the report.. 695
Legislation enacted and recommended relating to national b a n k s . . . . . . . . .
699
National-bank charters
•...
701
National-bank examiners
.^ 706
Bank officers and employees contacted of criminal violations of l a w . . . .
* 709
Condition of national banks at date of each call during report year.
712
Condition of national banks September 15, 1922—
Resources—
Loans and discounts
713
Overdrafts
.*
:.....
713
Customer's liability on account of acceptances
713
United States Government securities
....."........;....
714
Other bonds, stocks, securities, etc
..-.
. . . . . . . . . . . . ^ . . . • 714
Bank premises and other real estate owned
*.
........
714
Lawful reserve.
714
Cash in vault
.....
715
Due from banks and bankers
715
Exchanges for clearing hpuse
•• 715
All other assets
715
Liabilities—
Capital JBtock, surplus, and undivided profits
715
National-bank notes outstanding
.'.
..:
715
All deposits
^
716
Bonds and borrowed naoney
:.,.
716
Bank acceptances and other liabilities
716
Aggregate,resources and liabilities
716
Nonborrowing national banks, September 15, 1922
720
Borrowings of national banks on account of bills payable and rediscounts.
722
Classification of loans and discount;s of national banks in cities and States,
June 30, 1922..
.7....
724
Comparative statement of loans and discounts, including rediscounts made
by national banks during past three fiscal years
:
730
National banks in agricultural, semiagricultural. and nonagricultural
counties
.^
731
Investments of national banks, June 30, 1922
732
United States, domestic; foreign bonds, securities, etc., held by nationaln
banks in reserve cities and States
732
United States Government securities owned by national banks in reservie
cities and. States
;
738
Savings depositors and deposits in national banks
:
740
Relation of capital of national banks to deposits, etc
744
Percentage of the principal items of assets and liabilities of national banks.
744
Progress of national banks since passage of Federal reserve act.
744
Earnings, expenses, and dividends of national banks
748
National banks classified according to capital stock
759
National-bank failures.
: . . T.
."
760
National-bank charters applied for, granted, and refused
763
Increases and reductions of capital stock of national banks
763
Liquidation of national banks
-.\..
763
Consolidation of national banks
:
764
Growth in number and capital of national banks
765
National banks' capital stock changes, 1914-1922
...
765
Organization and liquidation of national banks
765
Conversions of State banks and primary organizations as national banks
since 1900.
..........;...•.........
.....::
....
774
Expirations and extensions of charters of national banks
774
•Reextension of national-bank charters
.
775
Changes of title of national banks
.*.
. . . . . . . . . . . •. 775
Changes of title incident to consolidations of national banks.
776
XIV
CONTENTS.
R E P O R T OP THE COMPTROLLER OP THE CURRENCY—Continued.
,
Pagt.
Domestic branches of national banks
,
777
Foreign branches of national banks
779
United States bonds and other interest-bearing obligations
784
Banks' investments in United States bonds, etc
784
Profit on national-bank circulation
786
Redemption of national bank and Federal reserve currency
786
National-bank circulation
788
National-bank circulation in vaults of currency bureau
:
789
Federal reserve system
.......
790
.. Federalreserve. bank discount rates
..:...
793
Federalreserve notes
793
Fiederal reserve bank notes
.'.
•
796
Banking power of the United States
796
Money in the United States
'
797
Rates for money in New York
^
800
Discount and interest rates
803
Monetary stocks in t h e principal countries of the world
805
New York Clearing House
805
Clearing-house associations in t h e United -States
805
Banks in t h e District of Columbia
806
Earnings, expenses, and dividends of savings banks and trust cornpanies
in t h e District of Columbia
.-••
• 807
Building and loan associations in the District of Columbia
808
Banks other than national:
'
State (commercial) banks
.•
......:
809
Loan and trust companies
811
Principal items of resources and liabilities of loan and trust companies
in June. 1914-1922
:
...,.
813
Stock savings banks
814
Mutual savings banks
817
Depositors and .deposits in mutual savings banks
818
Mutual.and stock savings banks
.*
821
Private banks.
821
All reporting banks other than national. State (commercial), savings,
private banks, and loan and trust companies
823
Principal items of resources and liabililbies of, J u n e 30, 1917-1922 . . . . . 826
All reporting banks:
Resources and liabilities of, in each State and island possessions
826
Summary of combined returns
834
Comparison of principal items of resources and liabilities of, in June,
1921-22.
835
« Individual deposits in
'.
836
Cash i n . . -.
i:
837
Savings deposits in (including postal savings and school savings deposits), June,. 1922.
838
Development of. since J u n e 30, 1914.
'.
841
Resources.and liabilities of, from 1917 to 1922.
842
National banks. Federal reserve, and State (commercial), loan and trust
com paniesy savings-and private, b a n k s . ; : . ; . . . . - . . . . . ' . . . . = . . . . • .
842
Building and loan associations
.<
843
United States Postal Savings System.
i.
845
School savings banks
851
Federal farm-loan system
854
Resources of central banks in foreign countries
..
855
Savings banks in principal countries of t h e world
:...:
856
Expenses incident to maintenance of*Currency Bureau, etc
859
Conclusion
.'.
860
R E P O R T OP 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 u n i t .
Work accomplished
..
.Changes and improvements in policy, organization,and p r o c e d u r e . . . .
Conditions of t h e work and prospects for t h e coming fiscal year
^
863
863
865
865
866
866
868
870
CONTENTS.
XV
R E P O R T OF THE COMMISSIONER OF INTERNAI^ R E V E N U E — C o n t i n u e d .
Committee on appeals and review
Estate tax and capital stock tax unit
Personnel.
Estate and capital stock taxes collected
Estate tax division
Capital stock tax division
Sales tax unit
.'
Tobacco Division
Miscellaneous taxes
Oleomargarine
Adulterated butter
^
Renovated butter.
."
Mixed
flour
'.
Claims
Accounts and collections unit
Organization
Division of Field Allowances
Field Procedure Division
Disbursement Division
Office Accounts'^and Procedure Division
Stamp DiAdsion
Prohibition unit
Office of counsel
Office of chief, general prohibition agents
Narcotic Division
Permit Division
;
Industrial Alcohol and Chemical Division
Audit Division
Solicitor of Internal Revenue
Conference committee
Interpretative Division I
Interpretative Division I I
Civil Division
Penal Division
Administrative Division
Suits and prosecutions
'.
•?
Bureau and field personnel
Statistical tables
Important decisions of courts in internal revenue cases
14263-FI 1922--—ii
.*'
•
-.
"...
:
Page.
•..
871
871
872
872
873
874
875
876
878
878
879
879
879
879
880
880
880
881
882
882
883
883
885
887
- 887
890
891
892
894
894
894
895
896
900
902
903
904
905
911
SECRETARIES OF THE TREASURY AND PRESIDENTS UNDER
WHOM THEY SERVED.
NOTE.—Robert Morris, the first financial officer of the Government, was Superintendent of Finance from
1781 to 1784. Upon the resignation of Morris, the powers conferred upon him were transferred to the "Board
of the Treasury," Those who finally accepted positions on this board were John Lewis Gervais, Samuel
Osgood, and Walter Livingston. The board served until Hamilton assumed office in 1789.
Secretaries of Treasury.
Presidents.
Washington.
Adams
Jefferson
Madison
Monroe
'
Adams, J. Q..
Jackson
,
Van Buren.
Harrison...
Tyler
Polk.,
Taylor....
Fillmore .
Pierce.
Alexander Hamilton, New Y o r k . . .
Oliver Wolcott, Connecticut
Oliver Wolcott, Comiecticut
,
Samuel Dexter, Massachusetts
Samuel Dexter, Massachusetts
Albert Gallatin, Pennsylvania
Albert Gallatin, Pennsylvania ^
George W. Campbell, Tennessee
Alexander J. Dallas, Pennsylvam'a.
Wm. H. Crawford, Georgia
Wm. pr. Crawford, Georgia
Richard Rush, Pennsylvania 2
Samuel D. Ingham, Pennsylvania 3.
Louis McLane, Delaware
Wm. J. Duane, Pennsylvania
Roger B. Taney, Maryland 4Levi Woodbury, New Hampshire..
Levi Woodbury, New Hampshire s.
Thomas Ewing, Ohio
Thomas Ewing, Ohio «
,
Walter Forward, Pennsylvania ^
John C. Spencer, New York s
Geo. M, Bibb, K e n t u c k y . . . . . . . . . . . .
Geo. M. Bibb, Kentucky
Robt. J. Walker, Mississippi ^
,
Wm. M. Meredith, Pennsylvania
Wm. M. Meredith, Pennsylvania
Thos. Corwin, Ohio
James Guthrie, Kentucky
Term of service. ^
From—
Sept. 11,1789
Feb. 3,1795
Mar. 4,1797 '
Jan. 1,1801
Mar. 4,1801
May 14,1801
Mar. 4,1809
Feb. 9,1814
Oct. 6,1814
Oct. 22,1816
Mar. 4,1817
Mar. 7,1825
Mar. 6,1829
Aug. 8,1831
May 29,1833
Sept. 23,1833
July 1,1834
Mar. 4,1837
Mar. 6,1841
Apr. 5,1841"
Sept. 13,1841
Mar. 8,1843
July 4,1844
Mar. 5,1845
Mar. 8,1845
Mar. 8,1849
July 10,1850
July 23,1850
Mar. 7,1853
To—
Jan. 31,1795
Mar. 3,1797
Dec. 31,1800
Mar. 3,1801
May 13,1801
Mar. 3,1809
Apr. 17,1813
Oct. 5,1814
Oct. 21,1816
Mar. 3,1817
Mar. 6,1825
Mar. 5,1829
June 20,1831
May 28,1833
Sept. 22,1833
June 25,1834
Mar. 3,1837
Mar. 3,1841
Apr. 4,1841
Sept. 11,1841
Mar. 1,1843
May 2,1844
Mar. 4,1845
Mar. 7,1845
Mar. 5,1849
July 9,1850
July 22,1850
Mar. 6,1853
Mar. 6,1857
1 While holding the office of Secretary of the Treasury, Gallatin was commissioned envoy extraordinary
and minister plenipotentiary April 17, 1813, with John Quincy Adams and James A. Bayard, to negotiate
peace with Great Britain. On February 9,1814, his seat as Secretary of the Treasury was declared vacant
because of his absence in Europe. William Jones, of Pennsylvania (Secretary Of the Navy), acted ad
interim Secretary of the Treasury from April 21,1813, to February 9,1814.
<
2 Rush was nominated March 5,1825, confirmed and commissioned March 7,1825, but did not enter upon
the discharge of his duties until August 1, 1825. Samuel L. Southard, of New Jersey (Secretary of the
Navy), served as ad interim Secretary of the Treasury from March 7 to July ^ , 1825.
3 Asbury Dickens (Chief Clerk), ad interim Secretary of the Treasury June 21 to August 7,1831.
< McCIintock Young (ChiefClerk), ad interim Secretary ofthe 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 (Chief Clerk), ad interim September 13,1841.
^ McCIintock Young (ChiefClerk), ad interim March 1 to 7, 1843.
8 Spencer resigned as Secretary of the Treasury May 2,1844; McCIintock Young (Chief Clerk), ad interim
from May 2 to July 3,1844.
.
*
9 McCIintock Young (C hief Clerk), ad interim March 6 to 7,1849.
XVIII
SECRETARIES OF T H E TREASURY.
Secretaries of the Treasury and Presidents under whom they served—Continued.
Presidents.
Secretaries of Treasury.
Term of service.
From—
Buchanan
Lincoln
Johnson
...
Grant
Hayes
G arfield
Arthur
Cleveland
Harrison, Benj
Cleveland
McKinley.....
Roosevelt
Taft
Wilson
Harding
Howell Cobb, Georgia lo
Philip F. Thomas, Maryland
John A. Dix, New York
Salmon P. Chase, Ohio u
Wm. P. Fessenden, Maine 12
Hugh McCulloch, Indiana
Hugh McCulloch, Indiana ^3
Geo. S. Boutwell, Massachusetts
Wm. A. Richardson, Massachusetts
Benj. H. Bristow, Kentucky "
Lot M. Morrill, Maine
Lot M. Morrill, Maine
John Sherman, Ohio i5
Wm. Windom, Minnesota
Wm. Windom, Minnesota
Chas. J. Folger, New York 16
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 V
Chas. Foster, Ohio
Chas. Foster, Ohio
John G. Carlisle, Kentucky
John G. Carlisle, Kentucky
,
Lyman J. Gage, Illinois
Lyman J. Gage, Illinois
,
L. M. Shaw, Iowa
George B. Cortelyou, New York
Franklin MacVeagh, Illinois
W. G. McAdoo, New York
Carter Glass, Virginia.. 1
David F. Houston, Missouri
Andrew W. Mellon, Pennsylvania..
ToDec. 8,1860
Dec. 12,1860 Jan. 14,1861
Jan. 15,1861 Mar. 6,1861
Mar. 7,1861 June 30,1864
July 5,1864 Mar. 3,1865
Mar. 9,1865 Apr. 15,1865
Apr. 16,1865 Mar. 3,1869
Mar. 12,1869 Mar.. 16,1873
Mar. 17,1873 June 3,1874
June 4,1874 June 20,1876
July 7,1876 Mar. 3,1877
Mar. 4,1877 Mar. 9,1877
Mar. 10,1877 Mar. 3,1881
Mar. •8,1881 Sept. 19,1881
Sept. 20,1881 Nov. 13,1881
Nov. 14,1881 Sept. 4,1884
Sept. 25,1884 Oct. 30,1884
Oct. 31", 1884 Mar. 3,1885
Mar. 4,1885 Mar. 7,1885
Mar. 8,1885 Mar. 31,1887
Apr. 1,1887 Mar. 3,1889
Mar. 4,1889 1Mar. 6,1889
Mar. 7,1889 Jan. 29,1891
Feb. 25,1891 Mar. 3,1893
Mar. 4,1893 Mar. 6,1893
Mar. 7,1893 Mar. 3,1897
Mar. 4,1897 Mar. 5,1897
Mar. 6,1897 Sept. 14.1901
Sept. 15,1901 Jan. 31.1902
Feb. 1,1902 Mar. 3,1907
Mar. 4,1907 Mar. 7,1909
Mar. 8,1909 Mar. 5,1913
Ma^. 6,1913 Dec. 15,1918
Dec. 16,1918 Feb. 1.1920
Feb. 2,1920 Mar. 3.1921
Mar.
7,1857
Mar.
4,1921
10 Isaac Toucey, of Coimecticut (Secretary of the Navy), acted as Secretary of the Treasury ad interim
December 10 to.l2, 1860.
u George Harrington, District of Columbia (Assistant Secretary), ad interim July 1 to 4,1864.
12 George Harrington (Assistant Secretary), ad interim March 4 to 8,1865.
13 John .F. Hartley, of Maine (Assistant Secretary), ad interim from March 5 to 11,1869.
14 Charles F. Conant, of New Hampshire .(Assistant Secretary), ad interim June 21 to 30 [July 6], 1876.
15 Henry E. French, of Massachusetts (Assistant Secretary), ad interim March 4 to 7, 1881.
ic 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
interimSeptember 15 to24, 1884.
"
" A. B . Nettleton, of Minnesota (Assistant Secretary), ad interim January 30 to February 24, 1891.
ASSISTANT SECRETARIES OF T H E TREASURY.
XIX
UNDERSECRETARIES OF THE TREASURY AND PRESIDENTS
AND SECRETARIES UNDER WHOM THEY SERVED.
President.
Harding
Secretary.
Mellon
Undersecretary.!
S. Parker Gilbert, jr., New Jersey
Term of service.
From—
July 1,1921
To- .
ASSISTANTS TO THE SECRETARY OF THE TREASURY ^ AND
PRESIDENTS AND SECRETARIES UNDER WHOM THEY SERVED.
Presidents.
Washington
Wilson
Secretaries.
Hamilton
McAdoo
Assistants to the Secretaries.
Tench Coxe, Pennsylvania
George R. Cooksey, District of Columbia.
' Term of service.
FromToSept. 11,1789 May 8,1792
Mar. 6,1917 Mar. 4,1921
Glass.
Houston.
ASSISTANT SECRETARIES OF THE TREASURY ANI> PRESIDENTS
AND SECRETARIES UNDER WHOM THEY SERVED.
Presidents.
Taylor
FilmorePierce
Buchanan
Lincoln
Secretaries.
Meredith
Meredith
Corwin.
Corwin
Guthrie.
Guthrie
Cobb.
Cobb
Thomas.
Dix.
•Chase
Jo'hnson'
Lincoln
Fessenden.
McCulloch.
McCulloch.
Chase
Fessenden.
McCulloch.
McCulloch.
Fessenden
Johnson
McCulloch.
McCulloch.
Johnson
Lincoln
Assistant Secretaries.3
Term of service.
Charles B. Penrose, Pennsylvama
Allen A Hall, Pennsylvania
From—
Mar. 12,1849
Oct. 10,1849
ToOet. 9,1849
Nov. 15 1850
William L. Hodge, Tennessee
Nov. 16,1850
Mar! 13,1853
Peter G. Washington, District ofColumbia.
Mar.
Philip Clayton, Georgia
4,1853
Mar. 13,1857
Mar. 12,1857
Jan. 16,1861
George Harrington, District.of Columbia.
Mar. 13,18614
Maunsell B. Field, New York
Mar. 18,1864
June 15,1865
William E. Chandler, New Hampshire.
Jan.- 5,1865
Nov. 30,1867
July 11,1865
1 Office established act June 16,1921.
2 Office established Sept. 2, 1789; abolished act May 8, 1792; reestablished act Mar. 3, 1917. Appointed
by the Secretary.
3 Office established act Mar. 3,1849; appointed by the Secretary. Act Mar. 3,1857, made the office Presi<:lential.
•* Act Mar. 14.1864, provides one additional Assistant Secretary.
XX
ASSISTANT SECRETARIES OF T H E TREASURY.
Assistant Secretaries of the Treasury and "^residents and Secretaries under whom they
served—Continued. .
Presidents.
Secretaries.
. . . McCulloch
Boutwell.
Richardson.
Bristow.
Johnson
McCulloch
Grant
Boutwell
Richardson
Bristow.
Bristow
Morrill.
Hayes
Sherman.
Grant
Bristow
Morrill
Hayes
Sherman.
Garfield
Windom.
Arthur
Windom.
Folger.
Gresham.
Mcdulloch,
Cleveland
Manning.
Hayas .
Sherman
Sherman
Sherman
Garfield
Windom.
Arthur
Windom.
Folger.
Folger
Folger
Gresham.
McCulloch.
Cleveland
Manning.
Manning
Maiming
Manning
Fairchild.
Harrison
Windom.
Cleveland
Fairchild
Harrison
Windom.
Windom
Windom
Windom
Foster.
Windom
Foster.
Cloveland....... Carlisle.
Harrison
Foster
Foster
Foster
Cleveland
Carlisle.
Carlisle
McKinley
Gage.
Johnson .
Grant
John F Hartley Missouri .
From—
July 11,1865
Dec. 2,1867
-. TCfirrmnd Cooper, Tenne^^see,
William A. Richardson, Massachusetts. Mar. 20,1869
Frederick A. Sawyer; South Carolina.. Mar. 8,1873
Charles F. Conant, New Hampshire...
Curtis F. Bumam, Kentucky
Henry F. French, Massachusetts
July
1,1874
May
To4,1875
May 31,186S
Mar. 17,1873
June 11,1874
Apr. 3,1877
Mar. 4,1875 June 30,1876
Aug. 12,1876 Mar. 9,188^
Apr.' 3,1877
Richard C. McCormick, Arizona
Dec. 9,1877
John B. Hawley, Illinois
J. Kendrick Upton, New Hampshire.. Apr. 10,1880
Dec. 8,1877
Mar. 31,1880
Dec. 31,1881.
Feb. 28,1882
Apr. 17,18&4
Apr. 16,1884
Nov. 10,1885
Charles S. Fairchild, New Y o r k . . . . . . . Mar. 14,1885
Nov. 10,1885
William E. Smith, New York
Hugh S. Thompson, South Carolina... July 12,1886
Apr. 1,1887
June 30,1885
Mar. 12,1889
Isaac N. Maynard, New York
Apr. 6,18S7
Mar 11 188&
George H. Tichner, Illinois
George T. Batchelder, New York
A. B. Nettleton, Minnesota
Apr. 1,1889 July 20,1890
Apr. 1,18895 Oct. 31,1890
July 22,1890 Dec. 1,1892
Oliver I/. Spaulding, Michigan
July 23,1890
June 30,1893
Lorenzo Crounse, Nebraska
John H Gear, Iowa..
Genio M. Lambertson, Nebraska
Apr. 27,1891
Nov. 22,1892
Dec. 23,1892
Oct. 31,1892
Mar. 3,1893
Apr. 3,1893
Charles S. Hamlin, Massachusetts
Apr. 12,1893
Apr. 7,1897
John C. New, Indiana
Charles E. Coon, New York
0
' Act July 11,1890, provides for an additional Assistant Secretary.
Term of service.
Assistant Secretaries.
ASSISTANT SECRETARIES OF T H E TREASURY.
XXI'
Assistant Secretaries of the ^ Treasury and Presidents and Secretaries under whom they
served—Contmued.
Presidents.
Cleveland
McKinley.
ClGvelanci
McKinley.
Roosevelt-.
McKinley.'.
Roosevelt
McKinley
Roosevelt
Taft
Taft
Wilson
Taft
Wilson
Taft
Wilson
Harding
Wilson
Secretaries.
Carlisle
Gage.
Carlisle....
Gage.
Gage
Gage
Gagq.
Shaw.
Gage
Gage
Gage.
Shaw.
Gage
Gage.
Shaw.
Shaw..
Shaw..
Shaw..
Cortelyou.
MacVeagh.
Shaw
Cortelyou.
Shaw
Cortelyou
Cortelyou
MacVeagh.
MacVeagh
MacVeagh
MacVeagh
McAdoo.
MacVeagh......
MacVeagh
McAdoo.
MacVeagh.
McAdoo.
McAdoo
McAdoo
McAdoo
McAdoo
McAdoo
McAdoo.
Glass.
McAdoo
Glass.
Houston,
Mellon.
McAdoo .
Glass.
Houston.
Assistant Secretaries.
Term of service.
William E. Curtis, New York
From—
Apr. 13,1893
Scott Wike, Illinois
July
1,1893 May -4,1897
William B. Howell, New Jersey
Oliver L. Spaulding, Michigan
Apr.
Apr.
7,1897
7,1897
Frank A. Vanderlip, Illinois
Horace A. Taylor, Wisconsin
June 1,1897„ Mar.
Mar. 13,1899 June
Milton E. Ailes, Ohio
Mar.
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
J o h n 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
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, Illinois
June
Apr.
July
Mar.
Sherman P. .Allen, Vermont
July 20,1912
Charles D. Norton, Illinois
Charles D. Hilles, New York
James F. Curtis, Massachusetts
John Skelton Williams, Virginia
Charles S. Hamlin, Massachusetts
Byron R. Newton, New York
William P. Malburn, Colorado
Andrew J. Peters, Massachusetts
Oscar T. Crosby, Virginia
Leo S. Rowe, Pennsylvania
...
Mar.
Aug.
Oct.
Mar.
Aug.
-.. Apr.
June
To—
Mar. 31,1897
Mar. 10,1899
Mar. 4,1903
5,1901
3,1906
6,1901 Apr. 15,1903
8,1910
4,1911
24,1913
1,1913
1,1913
24,1914
17,1914
17,1917
22,1917
James H. Moyle, Utah
3,1912
3,1913
Sept. 30,1913
Feb. 2,1914
Aug. 9,1914
Oct. "^ 1,1917
Jan. 26,1917
Mar. 15,1917
Aug. 28,1918
Nov. 20,1919
Aug. 26,1921
Oct.
5,1917 6
July
Russell C. Leffingwell, New York
5,1920
Oct. 30,1917
fi 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 whom they
served—Continued.
Presidents.
Wilson.
Harding..
Wilson...
Harding..
Wilson...
Harding..
Wilson...
Harding..
Secretaries.
McAdoo...
Glass.
McAdoo...
Glass.
Houston.
Glass
Houston.
Glassl
Houston.
Houston..
Mellon.
Houston..
Mellon,
Houston..
Mellon.
Houston..
Mellon
Mellon
Mellon..:.
Assistant Secretaries.
ToJan. 31,1919
Thomas B. Love, Texas
From—.
Dec. 15,1917
Albert Rathbone, New York..
Sept. 4,1918 June 30,1920
Jouett Shouse, Kansas
Mar. 5,1919
Norman H. Davis, Tennessee
Nov. 21,1919 June 14,1920
Nicholas Kelley, New York
June 15,1920
S. Parker Gilbert, jr., New Jersey ' .
July
6,1920 June 30,1921
Ewing Laporte, Missouri
Dec.
4,1920
May 31,1921
Angus W. McLean, North Carolina..
Eliot Wadsworth, Massachusetts
Edward Clifford, Illinois
Elmer Dover, Washington
Dec.
4,1920
Mar.
Mar. 16,1921
May 4,1921"
Dec. 23,1921 July 25,1922
' Became Undersecretary July 1,1921,
Term of service.
Nov. 15,1920
Apr. 14,1921
4,1921
ANNUAL REPORT ON THE FINANCES.
.
,
TREASURY DEPARTMENT.
Washington, Novemher £0, 1922. ,
S I R : I have the honor to make the foliowiilg report:
The 12 months which have passed since the last annual report
have been marked by further liquidation and recovery from depress
sion, and, more recently, by a substantial revival of business. Prices
of commodities have risen materially and inventories generally are
low, the volume of business has ^been mounting to higher levels,
and labor throughout the country is again fully employed: 'The
year is closing with bountiful crops, and the severe depression in
agriculture has been relieved. Many of. the sections- which a• year' or
so ago were in a precarious condition are to-day working out -Of their
difficulties and gradually paying their debts. A few weak spote
remain, but banking conditions generally are sound, morieyriates sire
reasonable, and there is sufficient credit ayailable to meet alTlegiti^
mate demands. The waste of war is being repaired, and- even
abroad there are signs of progress in reconstruction. I n the Treasury
the year has seen a reduction in the gross debt amounting to about
$1,000,000,000, a balanced budget for the fiscal year 1922, showing
,a surplus of over $300,000,000 above expenditures, and substantial
progress in the refunding of the short-dated debt, which has now
been reduced to. manageable proportions. These developments are
all helpful, and aflford the basis for a revival of business, and industry
on sound lines.
There are, however, factors operating which contain elements of
uncertainty and make it difficult to determine the nature and extent
of the revival which is in progress. Owing to the restrictions on
immigration and the general resumption of industrial activity, the
country is already suffering from a scarcity of labor which is embarrassing some lines of business and leading to higher wage scales
where lower were expected a year or two ago. The railroads are suffering from undermaintenanca and inadequate equipment, and are
finding it difficult to move commodities to meet the demands of business, with resulting congestion in manufacture and trade and dislocation of prices. As a consequence farm products are selling too
low at the farm and too high at the distributing centers. Undermaintenance is affecting other lines, and apparently is itself the under14263—FI 1922
1 ^
'
•
1
2
REPORT ON T H E FINANCES.
lying basis for much of the year's activity. The building trades, for
example, have been fully engaged during the year in supplying the
deficiencies resulting from underbuilding during the \^ar,, ;but with
rising costs of material and labor and gradual satisfaction of demands there will surely be a tendency to reaction. There has also
been unprecedented activity in the manufacture and sale of automobiles, and in the making of railroad and other equipment. These
all represent efforts to meet capital requirements or to satisfy
needs that were held in suspense during the war and the succeeding
depression. Factors like these, however, are tending to create artfficial scarcities and artificial, or at least limited, demands, and in the
present unsettlement of world markets may spend themselves as the
most pressing needs are met if costs become too high. Meantime the
country has been accumulating gold, imported within the past two
years or thereabouts, aggregating about $1,000,000,000 more than was
held during the expansion of 1919-20, and this gold, itself directly
inflationary, has a tendency to expand credit and to create an unnatural ease of money for purposes of expansion and speculation.
At the same time the uncertain state of Europe and the disorder
of foreign currencies and the foreign exchanges have impaired the
corrective forces which used to operate in normal times, and have
created such unsettlement in foreign trade and so reduced the buying
power of foreign countries as to destroy or endanger the foreign markets for many of our products. This has tended to keep the pricies
of agricultural products below the general level, while rising costs of
inanufacture on the other hand are tending still further to ^ restrict
foreign* buying in our markets and threaten our ability to compete
with manufacturers abroad. Rejparatioiis and indemnities and other
intergovernmental debts are still unsettled and are contributing their
share to the derangement of markets and the disorganization of international trade.
Enough forces are operating, therefore, to make us cautious in
estimating the prospects for the future and take care lest we build
on a false basis. Business in this country can not progress indefinitely without its foreign niarketsj and undue expansion now, with
rising costs and artificial values, would inevitably sow the seeds of
reaction and make more difficult the reestablishment of normal relationships abroad. To avoid these pitfalls we depend for the most
part on the good sense and foresight of American business. The
Treasury, on its part, aims above all to keep its own house in order,
in the belief that a sound financial structure here will in the long run
afford the best basis for extending needed assistance to Europe and
for a healthful revival of domestic business on constructive lines. It
has during the year made important progress in readjusting the
national finances, and faces the current year with confidence that its
SECRETARY OE THE TREASURY.
3
fiscal problems can be safely met without, disturbance to business
and industry.' I believe that if in other fields we will proceed with
caution and with proper regard for the distressed condition of Europe,
it will be possible to maintain our prosperity on a stable basis.
REFUNDING THE SHORT-DATED DEBT.
The major problem.of the Treasury Department during the period
under review has been the refinancing of the short-dated debt. On
June 30, 1921, there was still outstanding over $7,000,000,000 of
debt maturing within two years, although the Treasury had already
made one offering of Treasury notes in pursuance of its announced
policy of distributing the short-dated debt into more convenient
maturities. This early maturing debt included nearly $4,000,000,000
of Victory notes maturing May 20, 1923, almost $2,500,000,000 of
Treasury certificates of indebtedness (loan and tax issues), all maturing within one year, and about $650,000,000 maturity value of warsavings certificaties of the series of 1918, due January 1, 1923.
I t was evident that it would not be possible to pay off all of this
debt by maturity, and that most of it would have to be refunded.
About $1,000,000,000 was retired during the fiscal year 1922, through
the operation of the sinking fund, the reduction of the balance in the
general fund, and the application of surplus revenues, leaving about
$6,000,000,000 S;tiU to be refunded, an amount considerably more
than the first and second Liberty loans combined. To refund this
$6^000,000,000 without; disturbance to business or interference with
the normal activities of the people was a task of extraordinary magnitude. Moreover, it had to be undertaken without the help of the
popular drives and the country-wide organization of perhaps two
million persons-that floated the Liberty loans during the stress of the
war. The Treasury undertook to meet the problem squarely, and to
finance the maturities on a straight investment basis. I t therefore
announced its general program early in 1921, and since then has
made striking progress in its development.
By October 31, 1922,
about $4,000,000,000 of the $7,000,000,000 outstanding on June 30,
1921, had already been retired or refunded, and there is every assurance
that if no extraordinary expenditures are permitted to intervene the
remaining $3,000,000,000 can be refinanced during the balance of the
current fiscal year without strain on the country's financial machinery
and without disturbance to the market for outstanding securities.
Treasury notes.
.
•
^
Th6 Treasury's program, as announced shortly after the beginning
of the present administratiori, has involved first the gradual refunding of a large part of the early maturing debt through successive
issues of Treasury notes, to mature in the years between the maturity
REPORT ON T H E
FINANCES.
of the Victory Liberty loan on May 20, 1923, and the maturity of
the Third Liberty loan on September 15, 1928. The first offering
6i these notes was made on June 15, 1921, and was promptly oversubscribed. Since .that date there have been five additional offerings
of Treasury notes, several of them in exchange for Victory notes, and
all have met with a hearty response from the investing public. The
following table gives the total issues of Treasury notes to October
31, 1922:
Issues of Treasury notes to October SI, 1922.
Date of issue.
June 15..
Sept. 15.
Feb.l..
Mar. 15.,
June 15.,
Aug.l..,
1921.
1922.
Date of maturity. <5
June 15,1924
Sept. 15,1924
Mar.
Mar.
Dec.
Sept.
15,1925
15,1926
15,19^5
15,1926
Interest
rate.
Per cent.
5^
Amount of
issue.
$311,191,600
390,706,100
601,599,500
617,769,700
335,128,200
486,938,900
2,743,334,000
Total.
This table shows clearly how the policy of refunding the shortdated debt into successive issues of Treasury notes in comparatively
moderate aniounts has made it possible to convert a substantial part
of the short-dated debt into more manageable maturities, falling due
at convenient intervals, and how it has enabled the Treasury at the
same time to take advantage of declining interest rates to an exterit
which probably would not have been possible had it been''under t h e
necessity of refunding unmanageable amourits of short-dated debt at
any one time. The rate of interest on Treasury notes has gradually
b^en reduced from 5f per cent on the first offering of notes on June
15, 1921, to 4 | per cent on the issue of August 1, 1922, and the
investment markets have through these issues been relieved of the
fear of spectacular refunding operations that would have interfered
with the normal course of business.
A detailed description of the various offerings of Treasury notes is
given in the article entitled '^ Treasury notes and certificates of
indebtedness," on pages 47 to 51 pf this report.
Treasury bonds oJ 1947-1952.
In October, 1922, the time became appropriate for a longer-term
refunding operation, and the Secretary of the Treasury accordingly
an'nounced, on October 9th, under authority of the act of Congress
approved September 24, 1917, as amended, a popular offering.of 4^
per cent 25-30 year bonds, dated October 16, 1922, maturing October
15, 1952, and redeeiriable at par and accrued interest, in whole or in
part, at the option of the United States, on and after October 15,
SECRETARY OF THE TREASURY.
0
1947. The purpose of the offering and its relation to the refunding
program appear most clearly from the Secretary's letter of October 9,
1922, to the banking institutions of the country, which is shown as
Exhibit 29, on pages 171 to 173 of this report. The bonds were issued
in both coupon and registered form, in denominations of $100 and
upward, and the Treasury made special efl'orts to secure the widest
possible distribution among investors throughout the country. The
offering was for $500,000,000 or thereabouts, with the right reserved
to the Secretary of the Treasury to allot additional bonds up to a
limited amount to the extent that 4 | per pent Victory notes or
Treasury certificates of indebtedness of the series maturing December
15, 1922, were tendered in payment.
The offering met with a quick response from all sections of the
country. I t was the Treasury's declared intention to hold down
allotments on cash subscriptions to $500,000,000, or thereabouts, and
subscription books>on^^the primary offering; werevaccordingly'closed
at noon October 14, 1922. Allotments were made in full upon all
cash subscriptions in amounts not exceeding $10,000 for any one
subscriber. Heavy cuts were made in the larger subscriptions; only
40 per cent was allotted on subscriptions for amounts over $10,000
but not exceeding $50,000; only 30 per cent on subscriptions over
$50,000 but not exceeding $100,000; only 20 per cent on subscriptions
over $100,000 but not exceeding $500,000; only 15 per cent on subscriptions over $500,000 but not exceeding $1,000,000; and only 10
per cent on subscriptions over $1,000,000; with certain minimum
allotments in each class. Subscriptions on the primary offering
amounted to $1,399,851,900, of which $512,390,000 was allotted.
• In addition to the subscriptions received on the cash offering, subscriptions aggregating $252,060,900 were received qn exchange,
making total subscriptions for this offering of Treasury bonds amounting to over $1,651,000,000. Subscriptions on the exchange offering,
for Which 4 | per ceiit Victory notes or December 15 Treasury certificates were tendered in payment, were allotted in full, so that the total
allotments on the offering aggregate slightly over $764,000,000.
These were the first long-time Government obligations offered to
the people of the United States since the offering of the fourth Liberty
loan, in September, 1918. The issue afforded a particularly favorable
opportunity to holders of 4f per cent Victory notes to acquire a
long-time Government bond on attractive terms in place of their
Victory notes, which would mature or be redeemed within a few
months, and it has provided for a substantial part of the heavy
maturities of notes and certificates falling on December 15, reducing
the amounts remaining to manageable proportions. The success of
this loan has therefore meant important progress in the refunding
6
REPORT ON T H E FINANCES.
operations, and it greatly facilitates the refunding which remains to
be done.
A statement showing subscriptions and allotments by Federal
reserve districts is attached as Exhibit 25, page 164. Further details
are given in the official text of the offering, Department Circular No.
307, which is attached as Exhibit 28, page 168, and in the letter of
the Secretary of the Treasury to the banking institutions of the country, dated October 9,1922, which is attached as Exhibit 29, page 171.
Retirement oj Victory notes.
When the present refunding program was begun,, the greatest
problem was the Victory Liberty loan, which amounted to $3,913,000,000 on June 30, 1921. A maturity of this size was too large to
pay off or refund at one time, and the Treasury has therefore adopted
every available means to reduce the outstanding amount in advance
of maturity. To some extent this has been accomplished through
purchases for the sinking fund, and to a larger extent by acceptance
of Victory, notes in exchange for new Treasury notes. I t has also
been done through calls-for redemption before raaturity.
On February 9,1922', the Secretary of the Treasury announced the
call for redemption on June 15, 1922, in accordance With their terms,
of alloutstanding Victory notes of the tax-exempt 3f per cent series,
amounting to about $400,000,000, and at the same time offered to
redeem any of these notes presented for redemption prior to June
15, 1922, at par and accrued interest to the date of such optional
redemption. The terms of the call for redemption of the 3 | per
cent Victory notes are contained in Treasury Department Circular
No. 277, dated February 9, 1922, which is attached as Exhibit 32;
page 175, of this report.
'
I t had been previously announced, on January 26, 1922, that the
Federal reserve banks were authorized to purchase, for retirement,
Victory notes at par arid accrued interest direct from the holders on
or before February 1, 1922, up to an aggregate principal amount of
$100,000,000. The offer to purchase 4f per cent Victory notes at
par and accrued interest was exterided by successive authorizations to
June 15, 1922, and on June 23, 1922, the Secretary of the Treasury
announced that until further notice ariy 4 | per cent Victory notes
would be redeemed upon presentation by the holders at par and
accrued interest to the date of such optional redemption. Provision
was also made for the acceptance of Victory notes of either the 4 |
per cent or the 3f per cent series in coupon form at par, with an '
adjustment of accrued interest, in payment of income and profits taxes
payable March 15, ,1922. This authority was subsequently extended
to cover the June 15 tax payment, and, as to the 4 | per cent notes,
to the September 15 and December 15 tax payments.
SECRETARY OF THE TREASURY.
.
7
In connection with the offering of Treasury notes on June 15, 1922,
the Secretary of the Treasury announced that a substantial part of
the 4f per cent Victory notes would be called for redemption on
December 15, 1922. On July 26, 1922, the formal call for redemption
on December 15, 1922, of all Victory notes of the 4 | per cent series
bearing the distinguishing letters A, B, C, D, E, or F prefixed to
their serial numbers, was annoimced, these notes having been designated by lot in the manner prescribed by the Secretary of the Treasury. The terms of the call for redemption of these notes are contained in Treasury Department Circular No. 299, which is attached
as Exhibit 34, page 179, of this report.
As a result of these operations the 3 | per cent Victory notes have
all been retired and the amount of outstanding 4f per cent Victory
notes had been reduced to $1,658,000,000, on October 31, 1922,-of
which $753,000,000 are called for redemption on December 15, 1922,
leaving $905,000,000 to mature on May 20, 1923. By November
20, 1922, the amount of called Victory ^notes outstanding had been
further reduced to about $715,000,000. Further retirements.are in
progress, with a yiew to reducing the amounts which will have to
be refinanced at maturity or redemption.
,
The following table gives the amount of Victory notes of each
series outstanding at various dates since the date of issue:
4$ Victory
notes.
Original issues
June 30,1921..
June 30,1922..
Oct. 31,1922...
3i Victory
notes.
$3,822,787,900.
3,272,852,350
1,991,183,400
1,658,846,950
$672,585,100
640,928,000
Treasury certificates of indebtedness.
The gradual reduction in the amount" of outstanding loan and
tax certificates, resulting from the refunding operations which have
been in progress, appears from the following table, showing the
volume of unmatured loan and tax certificates outstanding on various
dates from August 31, 1919, when the public debt reached the highest
point, to October.31, 1922:
Loan and tax
certificates outstanding.
Date.
Aug. 31, 1919
June 30, 1920
June 30, 1921.. .
.
•.
$3,938,295,000
2,485,550,500
2,450,601,000
Loan and tax
certificates outstanding.
Date.
Oct. 31, 1921
Jime 30, 1922
Oct. 31, 1922
'.
1.
$1,932,218,000
1,754,787,500
991,257,500
8
REPORT ON T H E FINANCES.
On October 16, 1922, the last of the loan certificates were retired,
leaving only tax issues outstanding at the present time. The total
amount outstanding is, however, abnormally .small, for Victory notes,
with their short maturity, have stood this year on substsintially the
same basis as Treasury certificates. With the gradual retirement
of the remaining Victory notes it is likely that the balance will be
restored and a larger share of the short-dated debt take the form of
Treasury certificates.
Treasury certificates of indebtedness have continued to enjoy a
broad and active investment market during the year. Every issue
has been oversubscribed and favorable market conditions have
enabled the Treasury to reduce the rate of interest from 5i per cent
on the one-year certificates and 5 per cent on the six months' certificates offered in September, 1921, to 3f per cent on the^ one-year
certificates offered September 15, 1922, and 3^ per cent on the six
months' certificates offered June 1, 1922. A more complete description of the various issues of Treasury certificates of indebtedriess
and the course of certificate operations during the past year will be
found in the article entitled ''Treasury notes and certificates of indebtedness," on pages 47 to 51 of this report.
The remaining short-dated debt.
At the same time with these refunding operations there have been
substantial retirements of the public debt through the operation of
the cumulative sinking fund and other miscellaneous public debt
retirements, which are more fully described on pages 45 to 47 of this
report. As a result of these retirements, current redemptions of warsavings certificates, and the refimdirig operations above described,
the gross public debt of the United States had been reduced to
$23,077,000,000 on October 31, 1922, and the short-dated debt maturing within the current fiscal year tb approximately ^3,000,000^000.
The next maturities fall on December 15, and include about
$715,000,000 face amount of 4f per cent Victory notes called for
redemption on that date, and about $200,000,000 of maturing tax
certificates of Series TD and TD2-1922, against which the Treasury
will receive in December about $275,000,000 of income and profits'
taxes. On January 1, 1923, the $625,000,000 of 1918 war-savings
certificates become payable, and the Treasury has already announced a new offering of Treasury savings certificates with a view
to refunding as much of this maturity as possible into obligations
of the same general character and with the same appeal to the
needs of the small investor. The Treasury is offering special facilities
for the exchange of maturing war-savings certificates for the new
Treasury savings certificates, and hopes in this maimer to provide
for a substantial part of the war-savings maturity. The only
SECRETARY OF THE TREASURY.
'
9
Treasury certificates maturing in the second half of the fiscal year
1923 are about $266,000,000 on March 15, 1923, and about $273,000,000 on June 15, 1923, both of which are covered by the income
and profits tax payments estimated for those dates. On May 20,
1923, the remaining $905,000,000 of 4 | per cent Victory notes will
mature according to their terms.
The maturities which thus remain and have to be refurided this year
the Treasury will meet through further issues of refunding securities,
on terms 'adjusted to the condition of the Treasury and the state of
the market. The successful development*of the program will depend,
how^ever, as it has in the past, upon the maintenance of a sound policy
with respect to current expenditures. New or enlarged expenditures
not covered by current receipts wpuld necessitate new borrowing and
embarrass the Treasury in its plans for meeting the maturities.
Approaching puhlic-deUrnaturities.
Upon the completion of this year's refunding, there will arise a
new class of short-dated debt, maturing within the next five or six
years and aggregating perhaps $9,500,000,000, assuming that the
rest of the refuiiding is on a short-term basis. These maturities,
consisting chiefly of third Liberty loan bonds and of Treasury
notes and certificates resulting from the refunding operations of the
two years past, will be spread over each year until 1928, when the
third Liberty loan matures, and will be so arranged as to give free
play to the policy of orderly funding and gradual liquidation which the
Treasury has been following. All outstanding issues of notes and
certificates maturing within this period fall due on quarterly tax payment dates, and will thus absorb any surplus revenues which may beavailable. This gives the best assurance of the gradual retirement of
the war debt, and.is perhaps the greatest advantage of the short-term
refunding which the Treasury has been calTying on, f or by distributirig
the debt over early maturities in amoimts not too large to be financed
each year these refunding operations have given the Treasury control
over the debt and its retirement and avoided the teridency to perpetuation of the debt which would have been inherent in long-term
refunding upon a comprehensive scale. Given a balanced budget and*
a sound policy in respect to current expenditures, similar plans cari be
applied to the succeeding year's, with each year's surplus used to retire
maturing notes and certfficates. This will keep the finances clean,
assure the gradual liquidation of the debt, and put the Nation in ,
shape to meet future emergencies. I t depends above all else, however, on the maintenance of strict economy in Gbvernment expenditure and a healthy surplus of receipts over expenditures each
year.,
10
REPORT ON T H E FINANCES.
ECONOMY IN GOVERNMENT EXPENDITURE.
Economy and retrenchment in Government expenditures have
continued, under the leadership of the President, to be the watchwords
of the whole Government, and with reduced expenditures and heavy
realizations on railroad securities and other assets it proved possible
to balance the budget for the fiscal year 1922 and to close the year
with a surplus, amounting to about $321,000,000, on the basis of
daily Treasury statements, revised. The shrinkage of about $1,100,000,000 in cash receipts from income and profits taxes as compared
with the previous year made this an^unusually difficult task. That
it was accoijiplished in the face of the unfavorable prospects that
confronted the Treasury at the beginning of the year was due to the
unremitting efforts of the Government departments and establishments to reduce current expenditures to the utmost consistent with proper administration. Expenditures were cut nearly
$600,000,000 below the amount originally estimated, and the total
was less than $3,800,000,000, as compared with over $5,500,000,000
during the previous fiscal year, or a reduction of over $1,700,000,000.
A detailed statement of expenditures during the fiscal yeai* 1922, as
compared with 1921, appears on pages 109-118 of this report.
The reduction i n expenditures is attributable in part to the continued liquidation of war assets, for a special effort was made to
realize on securities and surplus property held by the Government
and about $390,000,000 was received during the^ year from sales
of railroad equipnient trust-notes and the sale or collection of other
securities acquired under the Federal control act or the transportation
act, 1920, all of which appear in the statements for the year as
.deductions from expenditure rather than as receipts.
For the current fiscal year, 1923,. the prospects again appeared unfavorable. At the beginning of the year the Budget estimates indicated
a deficit of about $697,000,000, not including about $125,000,000 of
accumulated iriterest on war savings certificates of the series of 1918,
to be paid within the year, though properly allocable to the five-year
period of their maturity. According to the most recent estimates
the threatened deficit has now been reduced to about $149,000,000, or
about $274,000,000 after taking into account the accumulated interest
on war savings certificates. Of this improvement about $200,000,000is due to reductions in estimated expenditure and about $350,000,000
to increased estimates of receipts largely froin customs and internalrevenue taxes.
A detailed statement of estimated receipts and expenditures for
the fiscal years 1923 and 1924, as compared with actual receipts and
expenditures in the fiscal year 1922, appears on pages 118 to 120 of
this report.
SECRETARY OF T H E TREASURY.
11
The estimates for the current year, it will be noted, include among
the receipts about $225,000,000 of interest on foreign obligations,
about $200,000,000 of which represents interest on the British debt
to the United States, and at the same time about $300,000,000 of
back taxes and about $125,000,000 of expected returns to the Treasury as a result of the gradual liquidation of the War Finance Corporation. The estimates of expenditures are based on the figures
received from the Bureau of the Budget, and make no allowance for
extraordinary expenditures not now authorized by law, though they
do include about $200,000,000 on account of settlements with the
railroads for matters arising out of Federal control or the six months'
guaranty following Federal control.
To overcome the deficit by the end of the year is the end toward
which the whole adininistration is striving. Much will be accomplished, it is hoped, through fur ther. reduc tions in expenditure, and
there are also possibilities of further increases in receipts, as, for
example, in collections of back taxes resulting from the final settlement of income and profits tax returns. This the Bureau of Internal
llevenue is making • special efforts to accomplish this year. Some
increases may also be effected, over and above receipts already
estimated, through further realization on the Government's investment in war emergency corporations, such as the War I'inance Corporation, and further sales of. collections of securities of various classes,
particiflarly those of the Federal land banks and obligations of carriers acquired under Federal control or the transportation act.
TAXATION AND REVENUE.
The revenue act of 1921 was approved November 23, 1921, and did
not become effective as to its most important changes until January 1,
1922. I t repealed the old excess-profits tax as of that date and as a
substitute imposed a 2^ per cent additional tax on the net income of
corporations. I t likewise repealed most of^ the transportation tax
a n d some of the nuisance taxes, and made some adjustments in the
income tax, including revisions of the rates and of the exemptions.
These changes have been operating during the calendar year 1922, and
the Treasury is able now to form some judgment as to their reaction
upon the revenues and their relations to the Federal tax system as a
whole. The changes are still so recent, however, that their full effect
will not be apparent u n t i l ' the income-tax returns based on the
business of the present calendar year are-filed and examined, and in
these circumstances the Treasury is not prepared at the present
time to recommend any general revision of the internal-revenue
laws. Nor will it be necessary at this time to consider any additional taxes, for the Treasury hopes to overcome any deficiences in
the revenue without recourse to new taxes.
12
REPORT ON THE FINANCES.
The Treasuryhas already expressed its views, in the annual report
for 1921, as to the direction which further tax revision should take^
and in line with those general recommendations and in the light of its
experience up to date with the revenue act of 1921, has some specific
recommendations for revision to make at this time, particularly as
to changes designed to close gaps in existing law which are causing
substantial loss of revenue to the Government. These recommendations relate chiefly to the rates of surtax and the avenues of escape
now open under the law. The higher smtax rates, which still,
run to 50 per cent, or a combined 5S per cent after including the
normal tax, put such heavy pressure on the larger taxpayers to
reduce their taxable income that these taxpayers inevitably seek
every permissible riieans of avoiding the realization of income subject
to surtax. The result is to create an artificial situation, which is
not wholesome from the poirit of view of business or industrial development. At the same time it is impairing the revenues of the Government, for under existing conditions the higher surtax rates are
undoubtedly operating to reduce rather than increase the revenues.
This presents a problem which calls for solution, and I believe it°
can be solved only by relieving on the one hand the pressure for
reducing taxable income, by making further readjustments of the
surtax rates, and on the other hand by closing, so far as possible,
the existing avenues of escape. To attenSpt to close the gaps alone
will not be enough, for the existing rates of surtax cause such heavy
pressure for 'avoidance that Tiew gaps would surely be found. The
high rates sound productive, but the fact remains that they are
becoming increasingly ineffective and are yielding less and less
revenue every year. The time has come to face the facts squarely
and to correct the artificial conditions which now prevail.
Revision ofthe surtaxes.
The higher rates of income surtaxes; as I have previously stated
in the letter of April 30, 1921, to the chairman of the Committee on
Ways and Means, ' ' p u t constant pressure on taxpayers to reduce
their taxable income, interfere with the transaction of business and
the free fiow of capital into productive enterprise, and are rapidly
becoming unproductive." Developments since that time have more
than confirmed these statements. Under the revenue act of 1921
the surtaxes rise to a maximum of 50 per cent, which applies to all
net incomes over $200,000, with rates on intermediate incomes graduated on this basis. According to the best estimates available, the
total yield of all surtaxes in respect to the business of the taxable
year 1922 will not exceed $350,000,000, and the returns for several
years have been steadily declining, from about $800,000,000 for 1919,
to about $590,000,000 for 1920, and about $450,000,000 for 1921
(estimated). The statistics of income for recent years likewise show
13
SECRETARY OF THE TREASURY.
that there has been a remarkable decline in the larger taxable
incomes, at the very time that net incomes generally have been
increasing. This appears, most clearly from the following table:
Table showing decline of taxable incomes over ^SOO,000.
N u m b e r of r e t u r n s .
N e t income.
D i v i d e n d s a n d interest
• on i n v e s t m e n t s .
Year.
. AU
. classes.
1916......
1917.......
1918.
1919
1920
• 437,036
3,472,890
4,425,114
5,332,760
7,259,944
Incomes
over
$300,000.
1,296
1,015
627
679
395
All classes.
Incomes
over '
$300,000.
All classes.
$6,298,577,620
13,652,383,207
15,924,639,355
19,859,491,448
23,735,629,183
$992,972,986
731,372,153
401,107,868
440,011,589
246,354,585
$3,217,348,030
3,785,557,955
3,872,234,935
3,954,553,925
4,445,145,223
Incomes
over
$300,000.
$706,945,738
616,119,892
•344,111,461
314,984,884
229,052,039
These figures show that while riet incomes of all classes during the
period from 1916 to 1920 increased from $6,298,577,620 in 1916, to
$23,735,629,183 in 1920, and the number of returns from 437,036 in
1916 to 7,259,944 in 1920, the number of returns of incomes over
$300,000 decreased during the same period from 1,296 in 1916, to
395 in 1920, and the amount of incomes over $300,000 from
$992,972;986 in 1916 to $246,354,585 in 1920. During this same
period investment income of all classes increased, while in incomes
over $300,000 investment income shrank from $706,945,738 in 1916
to $229,052,039 in 1920. This indicates an astounding decline in
taxable incomes over $300,000 and clearly reflects the tendency of
the high surtaxes to reduce taxable income. Ih this way the surtaxes
are gradually defeating their own purpose and the high rates are
becoming ineffective because of the steady disappearance of the taxable incomes to which they were intended to apply. The pressure
operates in different ways, but among the means frequently used to
reduce the amounts of income subject to taxation are the following:
1. Deductions of losses on sales of capital assets^ with the failure
to realize on capital gains;
2. Exchanges of property and securities so as to avoid; taxable
gains;
3. Tax-exempt securities; and .
4. Other avenues of escape, such as the division of property, the
creation of trusts, and the like.
Not all these things can be controlled by law or by regulation, and
most of them lead to unnatural and frequently harmful economc
results. To reach the evil the thing most necessary is the reduction
of the surtax rates themselves, in order to reduce the pressure for
avoidance and maintain the revenues derived from the surtax. I
believe, therefore, that it would be sound policy, and at the same
time most helpful to. the general situation, to reduce the surtaxes to a
maximum of not over 25 per cent, which would mean a combined
14
REPORT ON T H E FINANCES.
d
maximum, including normal tax and surtax, of not over 33 per cent.
Readjusted to this basis, the surtax rates would, in my judgment,
accoriiplish their purpose and yield'as large, or larger, revenues to the
Government without the unwholesome consequences of the existing
rates. The lower rates would at the same time broaden the market
for Government securities, and otherwise encourage the development
of productive enterprise.
Until some such readjustment is made the yield of the higher surtaxes will tend, in the ordinary course of events, to drop toward the
vanishing point. The wise course is to reform the surtaxes now
while the system still functions and at the same time to close, so
far as possible, the gaps which now exist. On this basis the revision can be made without loss of revenue, and, in the long run, with
material benefit to the revenues.
Capital gains and losses.
A most serious gap in the existing revenue laws arises from the
treatment of capital transactions. The law taxes capital gains and
recognizes capital losses, but the taxpayer retains the initiative and
refrains from realizing taxable gains while taking deductible losses.
The situation is particularly serious under the revenue act of 1921,
which limits the tax on capital gains to 12 J per cent but puts no limit
on the deduction of capital losses. This means that capital losses may
entirely cancel real income, while capital gains will not be realized at
all, or, if realized, are taxed at only 12^ per cent. Urider the present
system the Government is being whipsawed, and the Treasury therefore strongly urges that the existing provision as to capital gains be
made to apply conversely to capital losses and that the amount by
which the tax may be reduced on account of losses from the sale of
capital assets should not exceed 12^ per cent of the amount of the
loss. This would, to "a large extent, check one of the methods widely
used by taxpayers at the present time for decreasing their yearly
incoirie. The alternative is to refuse to recognize either capital gains
or capital losses for income-tax purposes, and if the present situation
were allowed to continue there is no doubt that it would save revenue to adopt this course. This is, in fact, the practice which has
been followed in England for many years.
Exchanges of securities.
The revenue act of 1921 provides, in section 202, for the exchange of
property held for investment for other property of a like kind without
.the realization of taxable income. Under this section a taxpayer who
purchases a bond of $1,000 which appreciates in value may exchange
that bond for another bond of the value of $1,000, together with $100
SECRETARY OF T H E TBEASURY.
1&
in cash (the $100 in cash representiiig the increase in the value of the^
bond while held by the taxpayer), without the realization of taxable^
income. This provision of the act is being Widely*'abused. Many
brokers, investment houses, and' bond houses have established exchange departments and are advertising that they will exchange^
securities for their customers in such a manner as to result in no taxable gain. Under this section, therefore, taxpayers owning securitieswhich have appreciated in value are exchanging them for othersecurities and at the same time receiving a cash consideration, without the realization of taxable income, but if the securities havefallen in value since acquisition will sell them and in computing net
income deduct the amount ofthe loss on the sale. This result ismanifestly unfair and destructive of the revenues. The Treasury
accordingly urges that the law be amended so as to limit the cases
in which securities may be exchanged for other securities, without
the realization of taxable income, to those cases where the exchangeis in connection with the reorganization, consolidation, or merger of
one or more corporations.
Tax-exempt securities.
The most outstanding avenue of escape from the surtax exists ijk
the form of tax-exempt securities, which under our constitutional,
system riaay be issued without restriction by the States and their
political subdivisions and agencies. The Federal Government may
likewise issue securities'wholly exempt from taxation. State and!
Federal, but since the first Liberty loan has followed the policy of
issuing its bonds,' notes, and certificates "without, exemptions from
Federal surtaxes, except in minor amounts and for limited periods.
Under the provisions of the Federal farm loan act, however, the
Federal land banks and joint stock land banks are still authorized:
to issue, and are issuing in large blocks, bonds exempt from all Federal, State, and local taxation, and the State and muncipal governments are constantly adding to the outstanding volume of their securities, all on a tax-exempt basis. The exemption which gives value
to these securities is, of course, the exemption from the Federal income surtax, and as matters now stand, the Federal Government,,
while denying itself the advantage of the exemption from the surtaxes in selliug its own securities, in effect provides a subsidy, at its
own expense, to the State and municipal governments, the Federal
and joint stock land banks and other agencies issuing tax-exempt,
securities, through the exemption from Federal income surtaxes which,
these tax-exempt securities enjoy. For this exemption the Federal
Government gets no compensating advantage, and the effect of the
exemption is to provide a perfect means of escape from Federal surtaxes w^hich is naturally most valuable to the wealthiest investor, and[
16
REPORT ON T H E FINANCES.
especially to one who is not engaged in business and is, therefore,
free to convert his investments into tax-exempt securities and thus
avoid paying income tax.
The volume of fully tax-exempt securities, according to the best
estimates available, is now approaching $11,000,000,000 and has
recently beeri increasing at the rate of about $1,000,000,000 a year,
li^^ith these securities available for investment, fully exempt as they
are from Federal income surtaxes, investors who would normally put
their surplus funds into productive enterprise, are automatically
driven under the pressure of high surtax rates into investment in
tax-exempt securities, with the result t h a t the Federal Governrrient
loses the revenue, business and industry lose the capital, and funds
badly needed for productive purposes are diverted into unproductive and frequently wasteful public expenditure. This is a situation
which can not be permitted to con tinue without grave danger to our
economic structure, as well as to our. system of taxation, and the
Treasury has accordingly been urging for some time the adoption of
a constitutional amendment restricting further issues of tax-exempt
securities as the only practicable means of correcting the evil.
(See Exhibit 87, page 318, for letter of January 16, 1922, from the
Secretary of the Treasury to the Chairman of the Cdmriaittee on Ways
and Means, with accompanying papers.) Even a constitutional
• airiendment would apply only to future issues of securities, but once
the airiendment is adopted outstanding issues of tax-exempt securities
will gradually eliminate themselves, and as they become scarcer should
so increase in market value as to destroy, or at least impair their
value for tax-exempt purposes. An analysis of outstanding issues of
State and municipal bonds indicates that 50 per cent, or thereabouts,
will mature within the next 20 years, so that within a measurable
period after the adoption of a constitutional amendment restricting
\ further issues of tax-exempt securities the situation would, to a large
\ e x t e n t , be under controL
A constitutional amendment, satisfactory to the Treasury and approved by the Attorney General, has already been proposed by joint
resolution favorably reported to the last session of Congress by the
Committee on Ways and Means. This amendment would apply
equally, and without discrimination, to the Federal Government, on
the one hand, and the State and municipal governments, on the other
hand, and would in effect p u t an end to future issues of tax-exempt
securities, making it possible, for the Federal Government, to tax income from future issues by or under authority of the severalStates
if, as, and to the extent that it taxes future issues of Federal securities, and, for the State governments, to tax income from future issues
of Federal securities if, as, and to the extent that they tax future
SECRETARY OF THE TREASURY.
17
issues of their own securities. The amendment, which appears in
H. J. Res. 314, reads as follows:
^
ARTICLE —.
SECTION 1. The United States shall have power to lay and collect taxes on income
derived from securities issued, after the ratification of this article, by or under the
authority of any State, but without discrimination against income derived from such
securities and in favor of income derived from securities issued, after the ratification ^
of this article, by or under the authority of the United States or any other State.
SEC. 2. Each State shall have power to lay and collect taxes on income derived
by its residents froin securities issued, after the ratification of this article, by or under
the authority of the United States; but without discrimination against income derived
from such securities and in favor of income derived from securities issued, after the
ratification of this article, by or under the authority of such State.
The Treasury most earnestly urges that this amendment be
prpmptly adopted and subriiitted to the States for their approval.
Administrative changes.
' Other administrative .changes should be made in the law with a
view to closing.up miscellaneous avenues of escape and improving
the collection of the,revenues. There should also be an indefinite
appropriation, for refunds of taxes iUegally or erroneously collected, in
order to facilitate the adjustment and payment of claims. . Appropriations of this character already exist for the, payment of customs
refunds and drawbacks, and similar provision for internal revenue
refunds would, avoid the necessity for frequent deficiency appropriations, and incidentally save the ernbarrassment arising from the allow^
ance of refunds in cases where no appropriation is available for payment.
No additional taxes.
The changes herein recommended will not decrease the revenues,
and in the long run should bring larger returns to the Treasury; No
additional taxes, therefore, are necessary on this account, and the
Treasury is not recoriimending any new taxes at this time to meet
indicated deficiencies in the revenue. I t is still impossible to tell
with certainty w.hether the present year-will close without, a deficit,
but enough has already J^een accomplished to reduce materially the
deficit appearing from the estimates presented at the beginning of
the year. The latest figures show.increased receipts from all sources,
including particularly customs and internal taxes, aggregating about
$350,000,000, and, on the other hand, decreased expenditures of
about $200,000,000, making a net gain for Budget purposes of about
$550,000,000. The present year,, moreover, presents extraordinary
circumstances, including, as it does, many overhanging items, both
of receipts and expenditure, which are not subject to administrative
14263—FI 1922
2
18
REPORT ON T H E FINANCES.
control and, since they depend upori extraneous conditions, are
difficult, and sometimes almost impossible, to forecast. Under such
conditions and with the progress.that has already been made in bringing the Budget for the year into balance, the Treasury does not
believe it necessary to impose at this time any additional taxes for
the purpose of supplementing the revenues.
The probabilities are that reductions in expenditure will not overcome all of the deficit indicated by the estimates. The Treasury
believes, however, that given relatively stable conditions in the
markets and in the business world it will be possible to meet the rest
of the deficit by increased receipts, arising, on the one hand, from
further realization on securities and other surplus assets of the.Government and, on the other, from increased collections of income and
profits taxes in respect to prior years. To this end the Treasury is
making exceptional efforts this year to dispose of the accumulation
of income and profits tax returns covering 1917 and subsequent years,
in the hope that by this means it willbe able to make substaLntial
fmther collections of back taxes. There are also indications, which
have so far as possible been taken into account in the estimates already
submitted, of increased collections of income taxes as a result of the
improvement in business during the calendar year 1922. The extent
of this improvement, and its effect on the revenues, will not, of
course, be disclosed until March 15, 1923, when the first installment
of income taxes for the taxable year 1922 becomes payable, but any
additional receipts on that account will help to reduce any deficit
that may still remain in the current revenues.
OBLIGATIONS OF FOREIGN GOVERNMENTS.
The obligations of various foreign governments held by the Treasury on November 15, 1922, aggregated $10,045,282,026.60, prmcipal
amount, arid may be classified as follows:
(1) $9,386,311,178.10 representing loans made by the Secretary
of the Treasury, with the approval of the President, under the
Liberty bonds acts.
(2) $574,876,884.95 received from the Secretary of War and the
Secretary of the Navy on account of sales of surplus war material
under the act of July 9, 1918.
(3) $84,093,963.55 received from the American Relief Administration on account of relief supplies furnished under the act of
February 25, 1919.
In addition to the above, the United States Grain Corporation, the
entire stock of which is owned by this Government, holds obligations
of various foreign governments amounting to $56,858,802.49. It is
expected that these obligations, which were acquired by the Grain
19
SECRETARY OF THE, TREASURY.
Corporation on account of sales of flour for^^relief purposes under the
act of March 30, 1920, will also be turned over to the .Treasury
Department for custody upon the completion of the pending liquidation of.that corporation. Notes of the Polish Government amounting
to about $24,000,000 are also held by the War Department and the
United States Shipping Board. I t is understood that these obligations were received on account of sales of surplus War material by
the former and transportation services by the latter, and that the
amounts may be subject to further adjustment.
A detailed statement of the foreign obligations now held by the
Treasury and by the United States Grain Corporation, showing also
the interest accrued and remaining unpaid as of t h e last interest
payment dates, is giveri as Exhibit 77, page 281.
The following'statemQ^t shows the credits established under the
Liberty.bond acts (after: deducting-credits -withdrawn), as at the
clo'sebf business oh Noveniber 15. 1922: "
:. . ^
Country. -
•
Credits estab• lished. ,
.
Belgium
,.
Cuba
......'....
Czechoslovakia.
..
France
1
'.
Great Britain
,
Greece
Italy...
Liberia
....:.............
Rumania
Russia
Serbia
.Total
•
!
•
Cash advanced.
Other charges'
against credBts.
Balance under
established
credits.
-
.S349,214,467.89 $3,49,214,467.89
• ••10,000,000.00
''10,000,000.00
. .67,329,041.1.0
61,974,041.10$5,355,000,09'
2,997,477,800.00^ 2,997,477,800.00
4,277,000,000.00 4,277,000,000.00
•;\:
' 48/236,629.05 • 15,000^000.00 "•"$33;236;629.'65;
1,648,034,050.90 1,648,034,050.90
- 26,000.00
' 26,000.00
25,000,000.00 • , 25,000,000.00
187:729,750.00
187,729,750.00
... .. ............
26,780,465.56
26,780,465.56
9,636,828,204.50
9,598,236,675.45
33,236,629..05
,
5,355,000.00
The balance of the credit which was granted to the Czecho-Slovak
Republic to assist that Goyernment in the repatriation of its troops
from Siberia was $6,072,834;36 at the beginnhig of the fiscal year 1922.
The movement of these troops was carried out by the War Department and the. Shipping Board, arid on May 29, 1922, the Czecho-r
Slovak Republic used $717,834.36 oiit of this credit to reimburse
the Shipping Board for its services. . The balarice to. the. credit of
that Republic is now $5,355,000, and whatever riiay remain after
all payments to the War Departriient have been completed will be
withdrawn.
I t is not contemplated that any further advances will be made by
the Treasury against the credits in favor of Greece. The nature of
these credits was described in last year's annual report.
20
REPORT ON T H E FINANCES.
. The following statement shows the amount of advances which have
been repaid up to November 15, 1922:
To Nov. 15,
1921.
Nov. 16,1921, to
Nov: 15,1922.
Belgium.. —
Cuba...........
France.......
Qreat Britain.
Rumania.:.:.
Serbia
$1,522,901.66
1,425,000.00
46,714,861.81
110,681,641.56
1,794,180.48
605,326.34
$440,552.83
834,500.00
17,357,868.04
30,500,000.00
48,564.63
$1,963,454.49
2,259,500.00
64,072', 729. 85
141,181,641.56
1,794,180.48
653)890.97
/ ; " Total...
162,743,911.85
49,181,485.50
211,925,397.35
Country.
'total.
•''The $30,500,000 rep.aid by the;British Government during thepast
year was on account of the obligations of that Government given for
purchases of silver under the Pittman Act, accordirig to the special
arrangement riiade regarding these obligations.
The repayments made by the Governments of Belgium: and Serbia
and substantially all of those made by France during the past year
represerit the unused balances of advances made by the Treasury to
those'Governments and turned over by them to the Commission for
Relief in Belgium and to the American ReUef Commission to be expanded for relief purposes. These unused balances were returned to
tKe Treasury to be applied :^s payments on account of the principal
of; the. obligations • of the r espeic ti ve Governments.
,
'
': No repayiri(Bnts:of principial have;been m
on any of the obligations acquired undei* the acts of July-9, iQ 18, February 25, 1919, or
March 30, 1920. :
/ ;
/
'
' The lollowing table shows the amourit of interest paid on fdireign
obligations acquired by the Treasury under the Liberty bond acts:
.
'
.
I)
,.,, C o u n t r y .
^
•
„
";
T o N o v . 15,
„• . 1921..;; ^
N o v . 16,1921, t o
' Nbvi 15,:1922.
.
J
••
'
.
•
•
.Total.
y
Belgium.. i
, ..
. . . . .
?.
$10,907,281.55
$10,907,281.55
C u b a : :•.. . : . . . ; . : • - . . . . . . . . . : . . . . . . . . . . . : . . . . . . : . . . i l . l . . . .•.1,442,922.91 •'.^$416,810.23
.-,1,859,733.14
CzechosiovaMa
. 30.4,178.;09
;304,178.09
F r a i i c e i 1 . . . . . . . . . . ' . . .^/. . • . . . . . . . . . i . :
. . . . . . : . ' . . . . . . . . 129,570,376.13
•129,570,376.13
Great B r i t a i n
i . •.
-.
247,844,685.50 'i63,"8i2,*566'.'66" 351,657,185.50
Greece.:..'!::'.... ^ 1....: I J . . . . : . . : . . . . .
. . . \ . . . : . ' , 1,159,153.34
V 4,159,153.34
. 57,59.8,852.'62
57,598,852.62
.
/ - 86i:i0
Liberia
::
..•.......;........:::.
.....'.
;
861.10
263,313.74
Rumania.
.....:.
,
.,
,.
263,313.74
.Russia:^........ : . < J : i . . . . . : . : ' . . I l l : . : . L . . : ! . J.
L L : .• : . : . - 4,872,811v5d "*'2,'6i2;744.*46*
7,485,555.96
Serbia
".
636^059.14
636,059.14
Total
454,600,495.62
106,^2,054.69
561,442,550.31
21
SECRETARY OF THE TREASURY.
Great Britain's interest payinents during the past year Were made
asfollows::....
-..•• ,; ,, .•,••'.-,.'.. .V'': ••,."
Date of payment.
Interest pn
obligations
given for
Pittman silver
advances.
• Intereist on
other obligations.
$1,372,500.00
915,000.00
915,000.00 $50,000,000.00
610,000. 00 "50,000,000.00
Apr. 15,1922.
May 15, 1922.
Oct. 16, 1922.
Nov. 15, 1922
Total..
• 3,812,500.00
100,000,000.00
Total;
$1,372,500.00
' 915,000.00
50,915,000.00
50,610,000.00
103,812,500.00
On page 58 of the Annual Report of the Secretary of'the Treasury
for the fiscal year 1920, refererice was made to two special furids aris^
ing out of the liquidation of certairi property of the Russian Government and held for Russia by. the Secretary of the .Treasury, aggregating $2,143,601.07. On August 3,. 1922^ these funds were applied
(1) to cancel the unpaid balance of the interest, amounting to $1,808^506, which became due on Russian obligations, May 15, 1918; and
(2) as part payment of the unpaid balance of the interest due November 15, 1918. Most of the funds which the Treasury has received in
payment of interest on Russian obligations represent the proceeds o.f
liquidation of the financial affairs of the Russian Government in this
country. Copies of a: letter dated May 23, :1922, from the Secretary
of State and the reply of the Secretary of the Treasury, dated June
2, 1922, in regard to the loans of this Government to Russia and the
liquidation of the affairs ,of the.Riissian Government in this country,
are attached as Exhibit 79, page 283.
<
.
: . :
The following statement shows, the amount of interest paid by
each foreign gdvernment bri pbligations acquired under the" act of
July 9, 1918j on account of ,sales of surplus war material:''•. ^ .
Country.
Belgium.
France..
Latvia...
Poland..
Russia...
Total...
To Nov. 15,
1921.' -
Nov. 16,1921,
to Nov. 15, •
1922: ' .
$2,797,351:40
20,038,719.13
126,266.19
' 1,290,620.78
10,179.87
$1>379,429.06
20,859,5.6.4.-43
• Total.:
. 40,580.43
','$4,176,780:46
.40,898,283. 5&
126,266.1,9',
•1,290,-620:78
.50,760:30
24,263,137:37 , .22,279,-573.92
'4'6,542, .711. 29'
The only interest payment received to date on foreigri obligations
acquired under the act of February 25, ,1919, was one of $181,017.17:
ori Russian obligatioris, which Was'paid ori .August 5, 1922. . * The Treasury understands that no interest has been paid on the
obligations held by the Uriited States Grain Corporation, acquired
under the act of March 30> 1920..
22
' • REPORT ON THfe FINANCJESv
The following staterrient by'the Secretary of the Treasury, regarding the status of the obligations of foreign governments held* by the
United States, and particularly the origin of^ the indebtedness of the
British Government to the United States, was made public on
August 24, 1922:
^. .: ,
A number of inquiries have been received, as a result of statements recently published, with respect to the exact status of the obligations of foreign governments
held .by the United States.' Especial attqption has been directed to the origin of
the\ indebtedness, ;.or the British, Government ainounting. to about $4,135^000,000.
It has been said that this liability was not incurred for the British Government, but for
ithe other allies, and that the United States, in making the original arrangements, had
insisted in substance that though the other allies were to use the money borrowed,
i t was only on British security that the United States was prepared to lend it. It is
apparent from the inquiries which have reached the Treasury Depaitment that it.is
ssUjPposed that this, in substance, is the e;Jtplanation of the existing indebtedness of
•»Great Britain.
,
. '
; .
In answer to these inquiries, it should be said that the obligations of foreign govem?niehts, in question, had their origin almost entirely in purchases made in the United
iStates, and the advances by the United States Government: were-for the purpose of
'fiovei'ing payments, for these purchases-by the Allies.
'\'
, : ^
The statement that the United States Goyernment \drtuany insisted upon a guaranty
by the British Government of amounts advanced to the, other allies is evidently
based upon a misapprehension. Instead of insisting upon a guaranty, or any transaction of that nature, the United States Government took the position that it w-ould
make advances to each Government to cover the purchases made' by that Government and would not requii-e any Government to give obligations for advances made to
cover tlie purchases of any other Government. Thus, the advances to the British
Government, evidenced by its obligations, were made to cover its own purchases,
and advances were made to the other allies to cover their purchases.
The nature of the arrangements is shown by a memorandum which the Secretary of
the Treasury, in June, 1918, handed to the British ambassador, as follows:
So far as the purchases of the allied Governments for war purposes within the United
States and its Territories and insular possessions are concerned it is the expectation of
the Secretary of the Treasury to continue as heretofore the advances necessary to enable
the financing of such approved purchases. The Secretary of the Treasury quite agrees
with what he understands to be the views of the Chancellor bf the Exchequer that
advances shall be made to each allied Government for the commodities purchased in
the United States by orfor it and that no allied Government should be required to give
its obligations for such purposes when merely serving as a conduit for the supply of the
materials so purchased to another allied Government. Any other course would indeed
be.incompatible with what the Secretary of the Treasury deems a cardinal principle
which should be followed in respect to such advances, namely, that the allied Government for the use of which the commodity is purchased must give its own obligation
therefor and the obligation of any other allied Government can not be accepted by the
United States as an'equivalent.
It is well to further quote from a memorandum handed to the British ambassador in
June, 1920,.by the Secretary of the Treasury, in regard to these loans as follows:
.,It has been at all .times the view of the United States Treasury that questions regarding the indebtedness of the Government of the United Kingdom qf Great Britain
and Ireland to the United States Government and the funding-of such indebtedness
had no relation.either:to questions arising concerning the war loans of the Unite.d States
and of the United Kingdom to other Governments or to questions regarding.the reparation paynierits of the central Empires of Europe. These views were expressed to the
representatives of.the British Treasury :Constantly during the period when the United
States Government was making loans to the Government of the Unite.d Kingdom and
since that time in Washington, in Paris, and in London.' "• '^0'
SECRETARY OF THE TREASURY.
23
From these two. statements it, appears to be quite clear that the respective borrowing
^ nations each gave their own obligations for the money advanced by the United States
aad that no guaranty of the obligations of one borrowing nation, was asked, from.any
other nation- This is the understanding ofthe Treasury as to the status of the foreig'n
obligations growing out of the war now held by the Uhited States.
*
Austrian relief—The United' States Goyernment holds one of a
series of Austrian Government bonds designated as /^Relief Series B
of 1920,^' which was issued by. that Government in connection with
food purchased on Credit from the United States Grain Corporation for
relief purposes. The principal amount of this obligation is $24,055,708.92. A copy is attached as Exhibit 78, page 282. The other
bonds of ^'Relief Series B of 1920'' outstanding are held by various
European nations. This series of bonds, accordirig to the express
terms thereof, is a first lien upon all the assets and revenues of
Austria. Her assets and revenues are also subject to claims'of certain foreign governments on account of, reparations and coists'?-of
armies of occupation. Measures for the financial and'ecoriomic
reconstruction of Austria have for some time been the subject of
considerable discussion between the principal governrnents interested in the Austrian situation. The proposed plan of Austrian
rehabilitation contemplates that all Governments havirig clairiis
against Austria on account of relief, reparation, or costs of
armies of occupation shall extend the time of payment thereof and
suspend their liens on Austrian assets for a period of 20 years, so
that such assets may be available as security for new external credits.
I n order that this Government might cooperate in this respect with
the other governments having claiins against Austria, the following
joint resolution was passed by the Congress and approved by the
President on April 6, 1922:'
Whereas the economic structure of Austria is approaching collapse and great numbers of the people of Austria are, in consequence, in imminent danger of starvation
and threatened by diseases growing out of extreme privation and starvation; and
Whereas this Government wishes to cooperate in relieving Austria from the immediate bm'den created by her outstanding debts: Therefore be it
Resolved by the Senate and House of Representatives ofthe United States of America in
Congress assembled,' That the Secretary of the Treasury is hereby authorized to extend,
for a period not to exceed twenty-five years, the time of payment of the principal and
interest of the debt incurred by Austria for the purchase of fiour from the United
States Grain Corporation, and to release Austrian assets pledged for the payment of
such loan, in whole or in part, as may in the judgment' of the Secretary of the Treasury be necessary for the accomplishment of the purposes of this resolution: Provided,
however. That substantially all the other creditor nations, to wit, Czechoslovakia,
Denmark, France, Great Britain, Greece, Holland, Italy, Norway, Rumania, Sweden,
Switzerland, and Yugoslavia shall take action with regard to their respective claims
against Austria similar to that herein set forth. The Secretary of the Treasury shall
be authorized to decide when this proviso has been substantially complied with.
The Secretary of the Treasury has not yet been requested to take
formal action under the above resolution, but stands ready to act
24
REPORT ON T H E FINANCES.
when occasion arises and its conditions are met. On August 7,
1922, the Reparation Commission released from reparation claims
for a period of 20 years certain revenues of the Austrian Government in order that, they might be used as security for a new Austrian
bank of issue. In this coimection the United States Government
informed the Austrian Government that it was prepared, within the
limits of the resolution of April 6, 1922, to suspend its priority in
respect to Austrian assets and revenues to the extent necessary for
this purpose.
WORLD WAR FOREIGN DEBT COMMISSION.
The World War Foreign Debt Commission was created^by the act
of February 9, 1922, entitled ^^An act to create a commission authorized* Under certain conditions to refund or convert obligations of
foreign Govermnents held by the Uhited States of America, and for
other purposes,^^ the text of which is as follows:
Be it enacted by the Senate dnd House of Representatives ofthe United States of America
. in Congress assembled. That a World War. Foreign Debt Commission is hereby created
consisting of five members, one of whom shall be the Secretary of the Treasury, who
shall serve as chairman, and four of whom shall be appointed by the President, by
and with the advice and consent of the Senate.
SEC. 2. That, subject to the approval of the President, the cominission created by
sectibn 1 is hereby authorized 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 held by 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, the War Department, the Navy Department, or the American Relief Administration), arising out of the World War, into
bonds or other obligations of such foreign Government in substitution for the bonds
or other obligations of such Government 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: Provided, That nothing contained in
this act shall be construedoto authorize or empower the commission to extend the
time of maturity of any such bonds or other obligations due the United States of
America by any foreign Government beyond June 15,1947, or to fix the rate of interest
at less than 4i per centum per annum: Provided further^ That when the bond or other
obligation of any such Government has been refunded or converted as herein provided, the authority of the Commission over such refunded or converted bond or other
obligation shall cease.
„
SEC. 3. That this act shall not be construed to authorize the exchange of bonds or
other obligations of any foreign Government for those of any other foreign Government, or cancellation of any part of such indebtedness except through pajinent
thereof.
SEC. 4. Tlfat the authority granted by this act shall cease and determine at the
end of three years from the date of the passage of this act.
SEC 5. That the annual report of this commission shall be included in the annual
report of the Secretary of the Treasury on the state of the finances, but said commission
shall immediately transmit to the Congress copies of any refunding agreements
SECRETARY OF THE TREASURY.
25
^
entered into, with the approval of the President, by each foreign Government upon
the completion of the authority granted under this act.
Approved, February 9, 1922.
The act provides that the S^ecreta'ry .of the Treasury shall be one
of the members of the commission and serve as its chairman. As
the other four members of the commission, the President appointed
on February 21, 1922, Charles E. Hughes, Secretary of State; Herbert
C. Hoover, Secretary of Commerce; Reed Smoot, United States
Senator; and Theodore E. Burton, Member of the House Of Representatives, On February 28, 1922, the Senate confirmed.the appointments of Secretary Hughes and Secretary Hoover, arid on April 11,
1922, confirmed the appointmerits of Senator Smoot and Congressman
Burton.
.
,
The organization and first meeting of the commission wais held on
April 18, 1922. Eliot Wadsworth, Assistarit Secretary of the Treasury, was appointed secretary of the commission, and the following
resolution was adopted:
Resolved, That the Secretary of State be requested to inform each of the Governments whose obligations, arising out of the Wbrld War, are held by the United States,
including obligations held by the United States Grain Corporation, the War Department, the Navy Department, or the American Relief Administration, of the organiziition of the World War Foreign Debt Commission pursuant to the act of Congress approved February 9, 1922, and that the commission desires to receive any proposals
or re])resentations which the said Government may wish to make for the settlement
or refimding of its obligations under the provisions 6f the act.
In accordance with this resolution the Secretary Of State instructed
the diplomatic representatives of this Government 4t the capitals of
each of the foreign Governments indebted to the United States, with
the exception of Armenia, Austria,* Cuba, Greece, Liberia, Nicaragua;
and Russia, to comiriuriicate to the respective Governments to which
they were accredited the text of the resolution and of the act. This,
action was hot taken in respect to the Governments above nam^d
for the following reasons:
Armenia, Greece, and Russia: In none'of these countries is there
a Government recognized by the United States.
Austria: Congress passed on April 6^ 1922, a joint resolution giving the Secretary of the Treasury special authority to deal with the
Austrian debt.
Cuba: Interest and installments of principal are being regularly
paid and no refunding is required.
Liberia: An act authorizing a new loan, from the proceeds of which
the existing loan will be repaid in full, has already been passed by the
House of Representatives pursuant to request of the Department of
State, and is now pending before the Senate.
Nicaragua: This debt is regarded as already in funded form.
26
REPORT ON T H E FINANCES.
In response to the invitation of this Government the following
countries have designated representatives to negotiate with the
commission: Belgium, Czechoslovakia, Finland, France, Great Britain,
Hungary, Poland, Rumania, and Serbia.
The commission held further meetings on June 1 and 30, July 27,
August. 10, and September 29, 1922.
Ill July, 1922, the French Government sent a special mission,
headed by Mr. Jean V. Parmentier, director of the movement of
funds of the French treasury, to the United States to discuss with the
commission the French debt to this Government. Mr. Parmentier,
upon his arrival, placed in the harids of the commission certain data
relating to the financial and ecoriomic situation of France. He explained to the commission the position of his Government in respect
to the funding of its debt to the United States, stating t h a t he had
been designated by the French Government to afford the commission complete inf ormation as'to the financial condition of his Government, but that the latter did not consider it possible at the present
time to enter into any definite engagements for a funding or settlement of its debt. He further stated that it was his Government's
desire to postpone for an indefinite period consideration of this
riiia;tter, until the financial situation of France should become more
clear, particularly as to reparation receipts from Germany. The
commission's position on the subject was explained to Mr. Parmentier,
and especially its desire that a funding of the French debt should
take place in the near future. On August 17, 1922, Mr. Parmentier
informed the chairman of the commission that he had been keeping
his Government informed of the progress made in the negotiations
and that he had received a cable instructing him to return for a full
discussion with his Government of the situation as it had developed.
The chairman replied that in his view it could only be beneficial if
Mr. Parmentier should in person discuss with his Government the
negotiations which had taken place between him and the commission. Mr. Parmentier returned to France shortly after this conference.
Announcement was made by the Government of Great Britain on
July 17, 1922, that a special delegation would proceed to the United
States early in September to negotiate terms for the funding of the
British debt to the United States. The British Embassy in Washington subsequently reported that the delegation would sail on October 18 for New York, headed by Sir Robert Horne, Chancellor of the
Exchequer, who would be accompanied by Mr. Montagu Collet
Norman, Governor of the Bank of England, as second delegate. With
the recent change of government in England, however, the departure
of a delegation has been postponed pending the holding of the elections in that country.
SECRETARY OF T H E TREASURY.
27
Great Britain has paid $100,000,000 as interest on her obligations
t o the United States during the current fiscal year, $50,000,000 on
October 16, 1922, and $50,000,000 on November 15, 1922, in addition
to the payments under the special agreement as to silver advances.
The Italian Governmerit has stated that it is prepared to send a
special commission to this country to negotiate with the commission.
The Rumanian Government has sent a special delegation to the
United States to negotiate with the commission.
The commission has had discussions of a preliminary nature with a
few of the other debtor governments, but no definite funding agreements have yet been entered into.
Statistical information has been and is being compiled and analyzed
with a view to ascertaining the finaricial and economic conditions of
the various debtor nations. The commission is hopeful that after
the British debt to the United States has been refunded, which is
expected to take place shortly, substantial progress will be made in
concluding refunding arrangements with the other debtor nations.BUREAU OF INTERNAL REVENUE.^
Internal-revenue collections for the fiscal year ended June 30, 1922,
aggregated $3,197,451,083, compared with $4,595,357,061.95 for the
fiscal year ended June 30, 1921, a decrease of $1,397,905,978. 95, or
about 30 per-cent. This decrease in collections is due principally to
a decrease of $1,141,219,208.90 in receipts from incoine and profits
taxes, which aggregated $2,086,918,464.85 for the fiscal year 1922, as
compared with $3,228,137,673.75 for the fiscal year 1921.
The collections made during the first six months of the fiscal year
1922 included the third and fourth installments of income and profits
taxes on incomes of the calendar year 1920, returns for which were
made under the provisioris of the revenue act of 1918. The collections made during the last six months of the fiscal year included
the first and second installments of income and profits taxes on
incomes of the calendar year 1921, returns for which were made under
the provisions of the revenue act of 192.1. . The provisions of these
two acts with respect to the computation of net income and the
credits which may be applied against income in computing the tax
are substantially different. There was, in addition, a considerable
shrinkage of income in 1921 as compared with 1920.
1 The figures concerning internal-reyenue receipts as here given differ from figures carried in otlier Treasury statements showing the financial condition of the Government, because the former represent collections
by internal-revenue officers throughout the country, including deposits by postmasters of amounts received
from sale of internal-revenue documentary stamps, while the latter represent the deposits of these collections in the Treasury or depositaries during the fiscal year concerned, the differences being due to the
fact that some of the collections in the latter part of the fiscal year can not be deposited, or are not reported
to the Treasury as deposited, until after June 30th, thus carrying them into the following fiscal year as
recorded in the statements showing the condition of the Treasury; (See Department Circular No. 176,
par. 25.) •
.
28
REPORT ON T H E FINANCES.
There are still large numbers of unaudited income tax returns
which must be. disposed of before the work can be brought to a^
Cjurrent basis. From 1918 ito 1921, inclusive, millions of'.complicated
income and profits 'tax returns were received in the bureau, and it
was unable to audit the returns as rapidly as they came in. The
result was a vast accumulation. Complicated questions of law and
accounting, involving in some cases millions of dollars, have to be
decided before the tax liability of some of the largest taxpayers can
be determined. In many cases the returns of different ;corporations
must be consolidated. In other cases it is necessary to arrive at the
value of property paid into a corporation for shares of stock at the
"date of organization in order to ascertain the correct amount of
invested capital, and in numerous cases it is necessary to determine
the valuations of natural resources as of March 1, 1913, for the
purpose of determining the correct amount of depletion for the tax
years in question. The settlement of these questions necessarily
consumes time. The collection of back taxes, furthermore, has been
delayed by the provision of the revenue act of 1921 which gives taxpayers a right to an appeal and hearing prior to the assessment of
taxes^'found to be due upon the examination of returns filed for prior
years, for taxpayers in hundreds of cases have filed appeals with the
Committee on Appeals and Review, Every effort is being made to dispose of these accumulated appeals. The Committee on Appeals and
Review has been considerably enlarged and a special committee on
appeals and review has been created to handle the appeals from additional assessments of taxes for the year 1917. It is believed that by
March, 1923, the accumulated appeals will have been disposed of and
that after that time the appeals can be disposed of currently.
Everything possible is being done to expedite the auditing of returns filed for prior years and the closing of these cases. The Income
Tax Unit is, as rapidly as is consistent with careful consideration, examining the returns filed for prior years and assessing additional taxes
shown to be due. It is hoped, in view of the special efforts being
made to close cases pending in the bureau, that the accumulation
may be disposed of by the end of the fiscal year 1923, and that from
then on the bureau will be able to audit the returns as rapidly as they
come in and keep its work on a current basis.
A survey of the work in the Iricome Tax Unit last fall disclosed
that the prompt audit of returns was being seriously delayed by the
accumulation of claims which in large part offset the audit of returns
and the assessment of additional taxes, since in practically all cases an
assessriaent resulted in a claim which had to be adjusted before the
tax was collectible. Precedence was accordingly given , to claims
work, the decentralization of that work was carried to comjpletion,
duplication of review was eliminated, and a number of changes in
SECEETARY OF T H E TREASURY.
29
the procedure were made. As a result, the adjustment of claims has
made available for collection the additional taxes held up by claims
for abatement and claims for credit.
The number of claims on hand has been reduced materially during
the year. The 163,000 income and excess-profits tax claims on
hand in October, 1921, were reduced to 106,000 ori June 30, 1922.
The 167,405 claims adjusted during the year involved $332,479,050.60, ofwhich 139,631, involving $182,371,597.88, were allowed, and
27,774, involving $150,107,452.72, were rejected.
Under an appropriation made by Congress in December, 1921,
with a view to facilitating the settlement of pending claims, the
personnel has been increased during the year as follows: The consolidated returns division, 200 auditors; the natural resources
division and the amortization division, 75 engineers; the field
service, 600 auditors and 120 clerks; and the bureau in Washington,
100 clerks. These employees havebeen trained and are now rendering valuable assistance to the bureau. The classes in tax law and
accountancy have had an enrollment of 2,872 employees, and the
•correspondence courses for field employees 1,700. Competent
auditors and attorneys, regular employees of the bureau, have
rendered most valuable service outside of. office hours in the training
of these and other enaployees.
;^^
•
/
During the fiscal year ended June 30,' 1922, an aggregate of 954,731
income and profits returns were audited. Of these 717,879 were
individual arid partnership returns and 236,852 were corporation
Te turns. -On oflice audits (those made without field examination)
$22,736,236.26 additional tax was assessed on individual a n d partner-^
ship returns and $56,943,624.71 was assessed on corporation returns.
There were 24,868 field mvestigations on individuals and partnerships
as' a result of which $28,885,736.49 in additional tax was assessed.
There were also 14,088 field investigations of corporation reports resulting in additional assessments of $78,717,066.69. The total assessments on all back income taxes for the fiscal year ended June 30,
1922, were $187,282,664.15. .
During the quarter ended September 30, 1922, the number of
income returns audited was 448,809, as compared with'319,561 for the
preceding quarter. As a result of these audits, the amount of additional back taxes . assessed for this quarter exceeded the amount
assessed for the preceding quarter by $5,777,739.70. During the
quarter ended June 30, 1922; there was made available for collection
the amount of $15,438,873.69 in back taxes through the rejection in
whole or in part of claims for abatement and claims for credit.
During the quarter ended September 30, 1922, there was made
available for collection from this source back taxes aggregating
$30,504,271.16, or almost twice the amount assessed in the previous
quarter.
30
REPORT ON T H E FINANCES.
The following table indicates approximately the condition of the
work of the income tax unit of the bureau on August 31, 1922:
Condition of work, income-tax unit, August SI, 1922.
Returns audited.
Balance to be audited.
Total returns to be
audited and
reaudited.i Number. Per cent. Number. Per cent.
Class and year.
Personal:
1917
1918
1919
1920
1921
"
Total
Corporation:
1917
1918
1919
1920 ....
1921
Total
Grand total
i
860,000
725,000
860,000
890,000
.890, 000
846,538
703,584
832,238
161,113
98
97
97
18
13,462
21,416
27, 762
728,887
890,000
100"
4,225,000
2,543,473
60
1,681,527
40
366, 600
380,386
375,922
358,000
350,000,
330,010
319, 720
214,058
63,477
• 750_
90
84
57
18
36,590
60,666
161,864
294,523.
349,250
10
16
43
82
100
1, 830,908
928,015
• 51.
902,893
49
6,055,908
3,471,488
57
2,584,420
43
2
$
3
82
1 These figures include all returns filed and, in addition, a number of cases thrown back into audit by the
filing of claims. These reaudits together with delinquent returns still being received from the collector's
office, account for the differences in the number of returns filed in this report as compared with the report
of the Secretary for 1921.
The above table shows that the audit of the personal income-tax
returns for the years prigr to 1920 is practically complete. The
showing on corporation-tax returns is less favorable. These returns
are difficult to audit and much remains to be done before the work
will be current.
•
During the fiscal year ended June 30, 1922, a total of 162,404
delinquent income taxpayers were discovered and 408,920 verifications were made of income-tax returns filed on Forms 1040-A (net
income under $5,000). These investigatioris resulted in the discovery
ofi $a5;54.9j436j additional: tax; For the (skmB'periodV'244y354 delinquent miscellaneous taxpayers were discovered and 143,120 miscellaneous tax returns were verified. These investigations resulted in
the discovery of $31,340,172 additional tax.
During the entire fiscal year the total revenue producing investigations made by field deputy collectors resulted in the assessment
and collection of $56,791,914. During the fiscal year ended June
30, 1921, $39,976,126 was assessed and collected from this source.
The average amount collected and reported for assessment per deputy
increased from $15,634 in 1921 to $23,901 in 1922.
Estate-tax collections for the fiscal year aggregated $139,418,846.04,
compared with $154,043,260.39 for the preceding fiscal year. The
total number of estate-tax returns filed during the year was 13,192,
showing a tax liability of $114,614,189.56. As the result of field
SECRETARY OF THE TREASURY.
31
examinations and division audit, additional tax liability amounting
to $13,645,598.29 was disclosed.
A table showing the general sources of internal revenue from 1863
to 1922 is included in this report as Table M, page 498.
Prohibition and narcotic enforcement.
The prohibition unit of the Bureau of Internal Revenue, charged
with the enforcement of the national prohibition act, promulgated new
regulations during the fiscal year 1922, with a view to bringing about
a better enforcement of the act. A complete reorganization of the
unit has resulted in expediting the handling of permits, and a new
specially designed paper has been adopted to check the counterfeiting
of withdrawal permits and physicians^ prescription blanks. Additional restrictions have made the transportation of liquor by automobile trucks more difficult. The unit has endeavored to enforce
more • effectively -the provisions^ of'Title^^III/design^d^ to' i r i s ^
legitimate industry a sufiicient supply of alcohol. The manufacture
and sale of industrial alcohol have been carefully regulated^ and the
coriversion of this alcohol into beverage is less common than formerly.
Withdrawals of liquor froiri bonded warehouses have been greatly
reduced and the current monthly withdrawals apparently represent
the normal nonbeverage requirements of the country. The principal
sources of liquor for beverage purposes a t the present time are smuggling and the manufacture of illicitly distilled whisky.
All distilled spirits hitherto stored in distillery, general and special
bonded warehouses, are being concentrated into a small number of
warehouses. The liquor will there be more secure from loss by^theft
and casualty, and the cost to the Government of guarding the
bonded warehouses will be diminished.
The Harrison Narcotic Act has been as strictly enforced as the
limited appropriatit)ris- avaiJaJble'^ave^ p e ^
There h&s4)een^ air
increase of 65 per cent in the number of violations reported over the
previous year. Without any appreciable increase in the investigating
force, there has, however, been an increase of approximately 100 per
cent in the convictions secured, demonstrating thereby the effectiveness of the force.
CUSTOMS.^
Customs receipts for the fiscal year 1922 were $357,544,712 and not
only exceeded the receipts for the previous fiscal year by $49,519,610,
b u t were larger than for any previous year in the Government's history. The next largest sum, $333,683,445, was coUected in the fiscal
year 1910. Customs refunds during the year amounted, however, to
1 Figures for custom refunds and the cost of operating the customs service are on the basis of reports
of collectors of customs and therefore do not agree with thefiguresshown on page 114, which are on the
basis of warrants issued (net):
32
REPORT ON T H E FINANCES.
$37,132,197.80, an increase of $13,871,155.02 over the previous year,
when they aggregated $23,261,042.78. The increase in customs
receipts for the fiscal year 1922 as compared with the fiscal year 1921
was, in the main, due to the emergency tariff act, approved Miay 27,
1921, which not only increased the rate of duty on numerous articles
over those provided in-the tariff act of 1913, but imposed duties on
many articles which had been on the free list.
While the emergency tariff act, in removing many articles from, the
free list, increased customs receipts, it materially added to the work of
the service. The antidumping provisions particularly involved much
additional work, and other special provisions increased the burdens
imposed ori the service.. The new tariff bill, H. R. 7456, which was
pending in Congress dming the entire period of the fiscal year 1922
and was enacted into law on September 21, 1922, also required much
extra work, for while the bill was in Congress the customs service,
at the request of the respective committees of the House and Senate.haying the bill in, charge, was constantly engaged in gathering
and furnishing to the committee data in regard to. the foreign and
domestic values of various kinds of merchandise.
The urgent deficiency act approved August 24;, 1921, carried a
special appropriation of $100,000 for the customs service. This
appropriation was made for the piirp.ose of securing da-ta as to the
American values pf merchandise, and a special organization was
created to do the wQ^k. In? connection with this organization, it was
deemed adyisable by the Treasury Department to make temporary
deta;ils from the customs service of about 60 of its most experienced
officers and.a number of men were withdrawn from the special agency
servicefor the same purpose.
Notwithstanding the increased volume of work resulting from the
enactment of the emergency tariff act and the investigations made in
connection with the gathering of data for the Congress,, the cost of
operating the customs seryice for thefiscal year 1922 was $11,174,369
as compared with $11,227,905 for the fiscal year 1921, a decline of
$53,5,36.
It is estimated that the customs revenue for thefiscalyear 1923, most
of which falls under the new tariff act, will be about $450,000,000, or in
excess of any. previous year. While the total cost of collecting this
revenue will necessarily be somewhat greater than for the fiscal year
1922, it is expected that the relative cost of collection will be reduced.
THE DOMESTIC CREDIT SITUATION.
Loan liquidation, the Outstanding feature of blanking development
during the preceding year, coritinued during the greater part of the
12-months period ending October 31, 1922. At the same time money
rates declined materially, until about August of this year, and commercial banks accumulated a supply of free funds and increased their
33
SECRETARY OF THE TREASURY.
investments in Goverriment and corporate securities. During the
latter part of the period, however, the gradual advance in prices,
together with the increa;sing volume of business and of trading in
stocks and bonds, has been reflected in an increasing volume of bank
loans, and in somewhat higher rates for money. Early in 1922 the
dechne of wholesale commodity prices had come to ^a stop, and the
general price index this year records a slow rise, manifested first in
the prices of farm products arid gradually spreading to other classes
of products, especially coal, iron, and steel.
The principal' changes in the loaris and investments of about 800
weekly reporting riiember banks in the larger cities during the past
year are shown in the following table:
fin millions of dollars.]
:
i
•••
••••.
Change' during ye^r.
Loans and discounts
Investments
.
.
, Nov. 2.
. i92i.
Jan. ,4„
1922.
11,398
. . . . . . . . . . • 3,451
il,206
3,565
10,783
4,405^
11,275
4,539
14,771:
647
15,188
165
15,814
341
Total loans and investments
Borrowings from Federal reserve b a n k s . . .
14,849'
767
June 28, Nov.l,,
1922. " 1922.
•Amojmty i Per :cent.
-123.
—1.08
+ 1>088. ; ' ^-^i:53
-1-965
-426
-1-6.50
-55.54
The liquidation of loaiis during 1920 and 1921 occurred largely
iri the industrial centers, but beginning early in the current year
there has been gradual liquidation" of so-called ^^frozen Wans'^ in
the agricultural districts. The upward tendency of prices of farrn
products, which in 1921 had fallen relatively far below the prices
of othW groups of commodities, has helped, the farmei's and those
dependent upon them to liquidate their indebtedness. The Stock
Growers Finance Corporation, formed during.the summer .of. 1921 to
meet the emergency then existing, has been able to discontinue operations, and the War Finance Corporation, operating u!nder the agricultural credits act, ha;S found that payments on maturing obligations this fall have greatly exceeded, new loans. I n other lines,
foreign accounts are being gradually liquidated, so t h a t concerns
which were themselves borrowing in order, to carry these accounts
have been able to pay off a part of their loans. ^ Moreover,, many
industrial concerns, taking advantage of the favorable investment
market, have issued long-term securities, and in many cases have
used the proceeds to discharge or reduce their indebtedness to banks.
" Loans secured by Government obligations have declined during the
period, and commercial loans have shown an almost continuous decline
until within recent weeks, when the pressure of fall demands became
evident. . There has been, on the other hand, a steady iricrease in loans
secured by corporate stocks arid bonds since March of this year, reflecting the iricreased activity of the security markets.
14263—FI 1922
-3
34
REPORT ON T H E FINANCES.
The abundance of free funds arising from the increasein deposits
and the reduction in loans has brought about a considerable change
in the character of the earning assets of the banks. After paying
off their indebtedness to the Federal reserve banks, member banks
were faced with Ihe problem of finding satisfactory investment for
their accumulating funds or the alternative of letting them lie unproductive. The weekly reporting riaember banks accordingly increased
their investments about $1,088,000,000 between November 2, 1921,
and November 1, 1922. On November 1, 1922, about 29 per cent of
the active funds of these banks were invested in securities, compared
with 23 per cent a year earlier. The increasing importance of investments is shown even more strikingly when they are compared with
commercial loans, which are the bulk of ^ ^all other loans and discounts '^
in the weekly statements of the 800 reporting member banks. About
a year ago the reporting banks held $44 of securities for every $100 of
commercial loans, whUeat present (November 1, 1922) security holdings are $63 for every $100 of commercial loans. For reporting member banks in New York City, where liquidation of commercial loans
during the year was relatively larger than elsewhere, the. ratio
between security holdings and commercial loans has increased from
46 to nearly 79 per cent.
It is notable that more than four-fifths of the total increase in
investnients of the reporting member banks consists of Government
securities. United States bonds, largely Liberty bonds, show an
increase of nearly $600,000,000 forthe period and Treasury notes an
increase of $537,000,000, while Victory notes, partly through exchange
for Treasury notes and partly by retirenient, fell off $133,000,000.
This emplojnnent of surplus funds in the purchase of United States
securities by member banks reflects their own. investment pohcy
and is a natural result of the abnormal accumulation of funds in
their hands. ^ It does riot represent any change in policy on the
part of the Treasury, which has continued duririg the year to sell
its securities on an investment basis, with a view to their distribution
among real investors rather than among the banks.
A feature of the banking situatiori has been the rapid increase
in demand and time deposits during the current year. The changes
which have occurred in the deposits of reporting member banks during
the past year are shown in.the following table:
Lln millions of dollars.]
Change during year.
Nov. 2,
1921. .
Demand deposits (net)
Time deposits
Government deposits
Total
Jan. 4,
1922.
June 28,
1922.
Nov. i,
1922. .
n,188
3,642
222
10,180
2,988
258
10,416
3,011
257
11,124
3,38b
124
13,426
13,684
14,628 . 15,052
Amount. Per cent.
+9.9&
-f 1,008
-f654 ' -1-21.89
. -36
-13.95
+1,626
-fl2.11
35
SECRETARY OFCTHE TREASURY.
Demand and time deposits.of the weekly reporting member banks
reached their low point on SeptembcT 21, 1921, at $.12,749,000,000,.
and had increased $2,081,000,000 -by November 1, 1922. The
volume of these deposits is now in excess of the high point reached
during the period of inflation in 1919 and 1920, and it is notable
that the increase during the past year has occurred in spite of an.
actual decline in loans and discounts of the same banks. While theincrease in demand deposits of these banks from November 2, 1921,
to November 1, 1922, was $1,008,000,000, there was a decrease of
$123,000,000 in loans and discounts during the same period. Thismay be accounted for largely by the increase in investments, the^
increase in the gold supply as a result of gold imports, the decline^^
in Government deposits, and the reduction in the volume of Federal
reserve notes outstariding during the first half of the year.
The change in general credit conditions has been refiected in a
reduction in discounts and other earning assets of the Federal reserve?
banks, and more recently by a moderate increase under the pressure
of fall demands. The changes which have occurred in the condition
of the Federal reserve banks during the period under review are
shown in the following table:
[In miUions of doUars.l
Nov. 2,
1921.
Jan. 4,
1922.
June 28,
1922.
Nov. 1,
1922.
Changes, during
year. .
Amount. Per cent.
Purchased bills
United States securities
1,260
87
202
Total
Total reserves
Federal reserve notes in actual circulation.
1,549
2,946
2,408 ,
DiSf-onnt..<5 - , , . , . . . .
;
;
•
1,113
127
231
1,471
3,010
2,405
•
469
154
557
588
261
360
-672
-1-174
-f-158
—53.3a
4-200.00
4-78. 22
1,180
3,148
2,124
1,209
3,212
2,309
-340
4-266
-99
—21.9S
4-9.03
-4.11
The low point for the period in discounts was reached on July
26, 1922, when t h e y amounted to only $380,000,000. Since August
the Federal reserve banks have been offered an increasing amount
of paper for rediscount. This amount undoubtedly would have
been greater had not the Federal reserve banks become heavy
purchasers of acceptances, thus indirectly supplying additional
credits. The continued unportations of gold have also enabled member banks to reduce their borrowings from the Federal reserve banks
to a lower level than otherwise could have been done.
The Federal reserve banks, following their owri investment policy^
showed substantial increases in their investrrients in Government
securities during the first half of the present calendar year. On
June 28, 1922, the amount of these holdings, including Pittman Act
certificates, was $557,000,000, as compared with $231,000,000 on
36
REPORT ON T H E . FINANCES.
January 4. The proportion of Government securities to the total
earning assets of the reserye banks during that six-month period rose
froria about 16 per cent to 47 per cent, notwithstanding the redemption of $39,000,000 Pittman certificates. From June 28 to November 1 of this year, however, the reserve barik holdings of Government
securities have declined by about $197,000,000 to $360,000,000, including Pittman Act certificates.
The decline in Federal reserve notes which was noted during 1921
continued .until June 14, 1922, when the amount in circulatiori was
$2,123,000,000. There has been an increase since that date, amounting to $186,000,000, as improved industrial conditions have created
a demand for additional currency. Between November 2, 1921j
and November 1, 1922, the ratio of total reserves to combined
deposit and Federal reserve note liabilities bf the Federal reserve
banks increased from 71 to 76, accounted for largely by continued
importations of gold.
.
•.
Every Federal reserve district has been able to meet its own credit
requirements during the year without resorting to assistance from
other districts. Inter-Federal reserve bank loans were all paid off
during the latter part of 1921, and since the middle of last December
no Federal reserve bank has been obliged to rediscount paper with
other Federal reserve banks.
The course of money rates in the New York market, because of
easier credit conditions, continued downward during the greater part
of the period, though within recent weeks there has been a noticeable turn, as may be seen from the following table showing the range
of rates each month since October, 1921, for call loans, commercial
paper, and bankers^ acceptances:
• Call loans.
Date.
High.
October
November
December
January
February
Harch
April
3Iay.
June
July.
August
September
October
1921,
,
1922.
'.
:
High.
Low.
High.
Low.
Percerit. Percent. Per cent. Per cent. Per cent. Per cent.
•
4
6
51
°5i
4|44
6
4
5f
5
4|
4i
6
5i
5
4f
4J
^
•
:.
Low.
110 omo ains corn- Duioyuaay oauKers'
mercia paper.
acceptances.
6
6
5i
5
5
54
5
5
6
6
3
, • 4
3
3^
3
2|
2i'
3
'3§
4
' '5i
5
5
€
• 44
4^
•
.4
44
44.
4i
- 4i
44
44
4i
4
3f
31
•
3i
4i
4^
4i
H
3i
3i
3§
H
^3 |
4
4
4
34
3J
3J
.3
'21
3
3
, 3i
The discount rates of Federal reserve banks have been further
reduced during the past 12 months, as appears from the following
table, which gives the rates of the 12 banks at the high point, on
November 1, 1921, and on November 1, 1922:
37
SECEETARY OF THE TREASURY.
District.
Boston.
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago...:...
St. Louis
Minneapolis...
KansasCity...
Dallas.........
San Francisco.
High
point.
Nov. .1,
1921.
Nov.l,
1922.
Decrease
from ,
high
point.'
Per cent. Per cent. Per cent. Per.cent.
: 7
• 5
.Z
'•'
- 4
'7
5
3
^4
. 5
14
•44
li
.
44
54
14
.
•
'
44
? 6
24
44
. 6
24
44
6
14
44
6
•24
• 44
-
. 44
44
4
24
2
THE WAR FINANCE CORPORATION AND ITS OPERATIONS. '
At the time of the last annual report, the machinery for adininistering the agricultural credits act had just been organized throughout
the United States. Thirty-three loan agencies had been established
in the various agricultural and live-stock districts, banking, insti^
tu tions had become familiar with the powers and purposes of the
corporation, and the flow of credit to the farmers and stockmen had
begun to gain momentum. From the first of Noveniber, 1921, to the
end of February, 1922, the loans authorized by the corporation
averaged approximately $2,000,000 a day.
The corporation's activities have been conducted on a nation-wide
scale. To November 10,1922, it made or approved advances for agricultural and live-stock purposes aggregatmg approximately $430,000,000 in 37 States. The loans authorized on live stock in the West total
$90,000,000; on cotton in the South, $81,847,000; on grain in the
Northwest, Middle West, and Southwest, $36,790,000; on peanuts in
Virginia, $2,044,000; on tobacco in Kentucky, Indiana, and Ohio,
as well as in North Carolina and neighboring States, $40,000,000; on
rice in California and Arkansas, $9,750,000; on sugar beets in Colorado and Utah,* $9,996,000; on other agricultural commodities,.
$2,000,000; and for general agricultural purposes, $157,518,000.
These loans have reached the farmers and stockmen through approximately 4,400 banks, through 33 cooperative inarketing associations
having a total membership of about three-quarters of a million, and
through 100 live-stock loari companies. In addition, the corporation, since January, 1921, has authorized advances totaling
$53,000,000 to assist in financing exports, including $6,000,000 On
gram, $3,250,000 On tobacco, $35,750,000 on cotton, arid $3,100,000
on other agricultural products.
When the agricultural credits act was passed, the situatiori in the
agricultural and live-stock districts was decidedly acute. Farmers
.38
REPORT O N . T H E FINANCES.
and stockmen general'.v were iri a desperate plight. Breeding herds
were being sacrifii:ed on a wholesale scale. Iinmature stock was being
sent to the block, and cotton, corn, and other agricultural commodities
commanded prices that were discouragingly low. Forced liquidation
arid hasty selling impaired the/farmer's, buying power,-' and this, in
turn, brought about a reduced demaridior the products of industry.
Bank deposits were being drawn, down, reserves were depleted,, loans
could not be collected, and the stability of our whole agricultural
and banking structure was seriously threatened.
In January of this year the "effect, bf the activities of the corporation
began to be felt on a considierable scale. Conditions took a turn for
the better and a progressive improvement set in. The corporation's
. loans strengthened the banking situation in the country districts and
relieved the necessity of forced liquidation. They put the banks in
position not only to carry their farmer customers for a longer period
but also to riiake new advances, and. were a vital factor in bringing
about a marked iiriprovement in the whole economic situation. In
fact at no time in our history has there been an improvement so
rapid and extensive as that which has taken place during the past
18 months.
*
Because the corporation was able, under the authority granted by
the Congress, to harmonize its activities with the needs of the various
sections of the country and to direct its efforts toward the restoration
of more normal conditions throughout the Nation, the beneficial
effects of its operations rapidly became cumulative. Corn and hogs,
sheep and cattle, wheat and cotton, and most other staple agricultural
commodities are sold in nationail markets, arid the strengthening of
each weak spot in the situation was helpful everywhere. The relief
of the cotton growers and the restoration of their buying power aided
not only the South but the North and West, whence the cotton planter
draws his supplies of various kinds. A return of confidence to the
corn-belt farmer meant a better market for feeder stock from the
ranges of the West. When the;farmers of the Northwest were put in
position to continue their operations a better market for cotton goods
was opened up, with resulting benefit to the cotton grower. In spite
of local difl&culties here and there and unsatisfactory markets for sonae
commodities, the improved prices for farm products and the increased
purchasing power in the farming districts led to a general revival of
business within a few months. Repayments began to flow into the
corporation; and in the course of orderly liquidation there has been a
substantial reduction in its bank loans, practically, all its advances to
cooperative.marketing associations during the past season have been
liquidated, and large repayments have been made on its live-stock
loans.
SECRETARY OF THE TREASURY.
39
A special feature ofthe work of the corporation during the past
yea-r was the financing of cooperative marketing assocmtions; The
growth of the cooperjative .movement is one of the most encouraging
developments in the; inarketing of/ agricultural products^ in, .recent
years, for it prqrnises to bring al)out definite and far-reaphing improvements in our whole system of distributing farm commodities.
Many new associations have been organized for the hanciling of cotton,.^heat, tobacco, rice, and other staple products, and they have
made considerable progress in developing facilities for uniform grading
and classification, thus insuring more efficient handling and furnishing a better basis for credit.. They have also erected machinery
which will greatly facilitate, the gradual, orderly marketing of many
of our great staple commodities.
The relations of the War Finance Corporation with cooperative
marketing associations have been satisfactory. In general, theyhave
conducted their operations in a businesslike way and have willingly
met the corporation's requirements and regulations.
While the corporation has approved loans aggregating $113,000,000
to cooperative marketing associations to assist in financing the
orderly marketing of the 1922i crops, only a portion of this amount
will be used. These associations, for the most part, have already
demonstrated their ability to conduct their business on a sound basis,
and the banks, not only in the districts iinmediately concerned, but
also in the large financial centers, are showing a decided interest in
supplying them with funds. In fact, banks all over the country
have made and are making large sums available to cooperative
organizations.
Although by June the acute phases of the agricultural crisis had
passed and there had been a steady decline iri the demands upon the
corporation for assistance, it was apparent that the steadying effect
of its activities was still needed. Under the circurnstances, Congress,
by an act approved June 10, 1922, extended until June 30,1923, the
period dming which the corporation may naake loans. The law as
it now stands, therefore, contemplates that the corporation willcease
actiye operations at the close of the current fiscal year.
The War Finance Corporation is a temporary agency. Its highly
centralized form of organization, with concentrated power and resources, was well suited to the grave crisis of 1920-21. But it is
entirely unsuited to the permanent banking structure of the Nation.
Now that the emergency has been met for the most part, appropriate
action should be taken td adapt the machinery of finance to the permanent needs of our basic agricultural activities—needs wliich have
been greatly emphasized by the experiences of the past two years.
40
REPORT ON T H E FINANCES.
AGRICULTURAL OBEDITS.
Agricultural conditions hate steadily improved since the collapse
of the world market for farm products in 1920 arid 1921, though there
are. still many evidences thai the prices of farm products, are out of
line as comparied. with manufactured goods. JForced sales by the
farmers in order to meet maturing obligations have generally ceased,
arid the marketing of agricultural products has resumed a more
orderly course. The administration has done its utmost to relieve
the situation, and the Federal Reserve Board, the Federal reserve
banks, and the War Finarice Corporation have been rendering every
possible assistance, especially to farmers and live-stock growers, in
financing the growing and marketing of their products. The Federal
land banks, moreover, have been functioning to the limit of their
Capacity, and have iriade loans on farm lands at the rate of over
$200,000,000 durhig the year. The War Fuiance Corporation has
provided substantial relief imder the so-called agricultural credits
act, approved August 24,1921, and is stiU engaged in operations. It
must be recognized as ari emergency agency, however, and Will not
under the. law coritiniue in active business after this fiscal yeat.
Active consideration is accordingly being given to more permanent
measures of relief,' with particular reference to the provision of better
facilities for distribution arid marketing, and credits of intermediate
length. In all of these, measures the administration is taking an
Active iriterest. Some moriths ago, moreover, the Joint Commission
of Agricultural Inquiry made an investigation of the agricultural
situation, as related to the banking and firiancial resources of the country, recommending that further provision be. made for intermediate
agricultural credits ranghig from six months to three years, and the
Treasury Department, the Federal Reserve Board, and the War
Finance Corporation Have all been cooperating in an effort to work
out soriae satisfactory plan. I am inclined to believe that fpr the most
part the situation Can be met through existing banking facilities, with
the help of the Federal reserve banks, and perhaps some extension of
rediscounts, under proper regulations of the Federal Reserve Board,
to cover agricultural paper running as long as nine months. For all
practical purposes this should provide for everything except the livestock industry, and because of its peculiar nature I believe it would
be helpful to provide, under Federal supervision, for the organization
of live-stbck loan companies equipped to handle this business.
The farmer's difl&culty now is hot so much lack of credits as it is
lack of markets, and recovery of markets depends ' rather more on
world coriditions thari on domestic credits. The war and the reaction
which followed the war brought about an extreme disorganization of
commerce and industry all over the world. This country has already
SECRETARY OF THE TREASURY.
41
made an important recovery, and there have been substantial advances
in the prices of the principal agricultural products, in consequence
of which the condition bf the farmer has greatly improved. The
prices of agricultural products, however, are stUl out of gear, and there
must be further readjustments and better facilities for distribution
before the farmer's-position can be fully restored. There can be no .
doubt that one of the first conditions of sound recovery in the country
as a whole is the restoration-of the purchasing power of the farmer,
the impairment of which had so much to do with the last depression
in business.
..
FEDERAL FARM LOAN SYSTEM.
The greatest activity in the history of the farm loan system characterized the period from November 1, 1921, to November 1, 1922.
The Federal land banks during that period made loans to 70,993 farmers, tbtaluig $219,780,649, and sold to the investing public Federal
farm loan bonds aggregating $278,150,000. Bythe 1st of May of
the present year'^the banks had overcome the congestion in business which resulted from their long suspension during litigation, and
froiri the generally depressed coridition of the early part of 1921, and
since that time have been able to give immediate attention to current
demands. The sale of Federal farm loan bonds has exceeded the
needs of the banks for lending purposes, and consequently the Federal land banks have repurchased up to date $69,650,000 face amount
of the bonds held by the Treasury, thereby reducing the Treasury's
holdings to $113,385,000. The Federal land banks made these repurchases pursuant to the provisions of the law under which the Treasury originally acquired the bonds, but without any call from the
Treasury, as the Secretary has-wanted to avoid any pressure on the
banks or any interference with the flow of funds to meet the needs of
agriculture. As a matter of fact the Federal land banks themselves
advised that the repurchases would not interfere with their lending
operations, and on that basis the Treasury accepted the repayments,
believing it to be desirable, as market conditions permit, to liquidate
the Government's holdings of these securities.
. Condition of Federalland hanks.
During the 12 months' period ending October 31, 1922, the sum
of $2,333,890 was paid to the Treasury for the retirement of Government stock in the Federal land banks, leaving the Government's
present holdings of stock in the several banks at $4,264,880. The
present rate of progress indicates that within the next 12 months,
two, and probably four, of the Federal land banks will have retired
all of their stock owned bv the Government. The Federal farm loan
42
REPORT ON THE FINANCES*
„system is therefore rapidly approaching a condition which meets the
original intention that it should be a mutual organization operated
under Government supervision and control, with the capital stock
supplied by the borrowing farmers and not by the Government.
The following consolidated statement of condition of the. 12 Federal
land banks at the close of business October 31, 1922, shows the development of the Federal farm loan system, and the volume of the
farm loanbonds and farm mortgages outstanding. =.
ASSETS.
Net mortgage loans
^ $605,987,214. 04
Accrued interest on mortgage loans (not matured)
10,921,559. 80
U. S. Government bonds and securities
67, 688,. 829. 51
Accrued interest on bonds and securities (not matured).....
..
523,720. 54
Farm loan bonds on hand (unsold)
.
2,595,925. 00
Accrued interest on farm loan bonds on hand (not matured)
26,511.18
Other accrued interest (uncollected)
12, 840. 64
Notes receivable, acceptances, etc
:
...:.;..,
373,719. 03
Cash on hand and in banks.
:
'
11, 672,006. 39
Accounts receivable
...:.•
:
•
86,726: 21
Installments matured (in process of collection)
1,049, 351. 43
Banking houses.
,
:
489, 393. 63
Furniture iand
fixtures
166, 733. 50
^ Other assets
,.
1,055,351. 5"6
Total assets.
702, 649, 882. 46
LIABniTIES.
Capital stock:
United States Government
National farm loan associations
Borrowers through ageryts..
Individual subscribers
$4,264,880. 00
30,866,995.00
119,965.00;
4,890. 00
Total capital stock.
Reserve (from earnings)
Surplus (from earnings) -..,.-.
:...
Farm loan bonds authorized and issued
Accrued interest on farm loan bonds (not matured)
U. S. Government deposits
Notes payable
Due borrowers on uncompleted loans
Amortization installments paid in advance
.:....
Matured interest on farm loan bonds (coupons not presented)
Reserved for dividends unpaid...
..-.
Other liabilities...........
,
Undivided profits;
,
Total liabilities
.-........:...-...........
35,256, 730. 00
2,532,500.00
300,000. 00
641,208, 375. 00
14,328,140. 69
2,200,000. 00
311,202. 95
896,977. 20
139,783. 07
86,877.53
918,417. 62
4,470,878. 40
702,649,882. 46
. MEMORANDA.
Net earnings to Oct. 31, 1922
1 Unpledged mortgages (gross), $13,316,762.62.
,
11,786,59L 94
SECRETARY OF T H E TREASURY.
L e s s :
•
••
„
.
'-
. . • • : ' ' * : - , . ' . . • •
;
43
, . • • • , . •
D i v i d e n d s p a i d t o O c t . 31, 1 9 2 2 . . . . . . . . . . . . . . . ,$4,022,141.74
Carried to suspense account to Oct. 31, 1922... • 379,790.27'
Other charges to Oct. 31, 1922
81,281.53
_.
. -—:
:—— -
-
,
$4,483,213.54
Carried to surplus account to Oct. 31, 1 9 2 2 . . . .
$300,000. 00
Carried to reserve, account to Oct. 31, 1 9 2 2 . . , . 2, 532, 500. 00
Undivided profits Oct. 31, 1922. . . . . . . . . . . . . . . . . . 4,470, 878. 40
Total reserve and undivided profits Oct. 31, 1922 .^Capital stock originally subscribed b y U. S. Government
Amount of Government stock retired to Oct. 31, 1922.
7, 303, 378. 40
.
8, 892,130. 00
4, 627, 250. 00
Capital stock held b y U. S. Government Oct. 31, 1 9 2 2 . . . : .
4,264, 880. 00
Joint stock land bariks.'
The activities of the.joint stock land banks during the past year
have likewise been greater than during any previous year, and the
number of joint stock land banks has increased from 26 to 61 since
the previous report of the Secretary of the Treasury. In view of the
rapid increase in the activities of these institutions and their growing
output of tax-free bonds, it is appropriate to suggest again the question as to the continued existence of this branch of the system, and
as to the economic soundness of the policy of granting t a x exemption
privileges to private enterprise organized for individual profit. The
Treasury has heretofore recommended that as to future issues of
joint stock land bank bonds.the tax exemption provisions should be
repealed, and it reiterates that recommendation in thebelief that it
is bad public policy to grant tax exemptions, amounting in substance
to a subsidy from the Federal Government, to private enterprise of
this character.
. . .
F A R M E R S ' SEED-GRAIN LOANS.
.
Under a provision incorporated in the' agricultural appropriation
act of 1921, approved.May 31, 1920, and in accordance with the circular issued thereunder b y t h e TreasuryDepartment and the Department of Agriculture, entitled 'EJoint Circular No. 6," the.Treasury
Department, during the past year, has continued to release those
farmers whose crops were failures, as defined in the act, from Tepaymentof the ariaourits borrowed from the Government for the purchase
of seed wheat. The Treasury has also made additional collections on
account of repayments of farmers' seed grain loans not released" by
the act of May 31,1920, payments of interest on loans, and contributions to, the guaranty funds.
T h e following table shows the number and amount of the loans, the
ambunt released, the amount of principal collected, the amount of
interest collected, contributions to the guaranty funds, arid the
44
REPORT ON T H E FINANCES.
balance of principal outstanding uncollected as of September 30, 1922,
the latest d a t e i o r which figures are available:
Federalland
bank.
Wichita
St. Paul
Spokane
Total..
Number of
loans.
Amount
loaned.
Principal
coUected.
Principal
released.
8,282 $1,891,132.75 $1,365,750.99 $183,132.34
205,416.74
67,031.02
358,370.45
1,138
10,301.03 1,249,703.50
6,149 1,951,379.50
15,569
Balance of Interest Guaranty
principal
funds.
uncollected. coUected.
$342,249.42 $75,243.53 $246,414.45
: 85,922.69 1,764.88
• 443.20
691,314.97
478.30
24.15
4,200,882.70- 1,443,143.04 1,638,252.58 1,119,487.08
77,486.71
246,881.80
PUBLIC DEBT TRANSACTIONS.
At the beginning of the fiscal year the amount of the interestbearing debt outstanding was $23,737,304,180.37. During the year,
new issues. aggregated $5,911,260,119.74, redemptions aggregated
$6,914,141,312.66, the amount transferred to matured debt aggregated
$23,387,400, and the amount outstanding on June 30, 1922, was
$22,711,035,587.45, a reduction of $1,026,268,592.92. The principal
issues were Treasury certificates of indebtedness, $3,905,090,000, and
Treasury notes, $1,935,404,750. The principal redemptions were
maturing certificates of indebtedness, $4,766,854,950, and retirements
of Victory notes, amounting to $1,907,976,250, through redemption,
purchase or exchange for other securities; Further details concerning these trarisactions appear elsewhere in this report under the headings, ^'Refunding the short-dated debt," ^'Treasury notes and certificates of indebtedness," ^'Treasury Bonds," ^^Goverriment savings
securities," and in Exhibits 1 to 25 on pages 126 to 164. These
exhibits also show exchange transactioris, in connection with which
securities' amounting to $4,516,877,930 were issued, arid securities
amounting to $4,537,140,830 retired. The difference of $20,262,900
between the amount issued and the amount retired represents items
in transit or deliverable on June 30, 1921, and June 30, 1922.
The consolidated statement appearing as. Exhibit 21 on page 158 of
this report shows all transactions iri the five war loans from the date
of their respective issues to June 30, 1922. This statenient gives
some idea of the magnitude of the work imdertaken by the Treasury
organization and the Federal reserve banks as fiscal agents of the
United States. For purposes of issues 198,509,510 pieces of Libertybonds and Victory notes, having a face value of $66,290,850,000,
have been delivered by the Bureau of Engraving and Printing;
93,571,658 pieces, amounting to $21,432,924,700, havebeen delivered
by. the department on original cash subscriptions; 65,259,868 pieces
(including securities issuable on June 30, 1922) have been issued and
112,614,685 retired on account of.exchanges, coriversions, transfers,
etc., amounting to $26;962,942,650. There have been redemptions
of 3,^284,366 pieces, amoimting to $4,345,519,350, leavuig 42,932,475
pieces, amounting to $17,087,405,350, outstariding on June 30, 1922.
45
SECRETARY OF T H E TREASURY.
During the year various Treasury Department regulations governirig transactions in Liberty bonds and Victory notes, were revised.
(See Exhibits 41, 42, 43, 44, 45, and 80, pages 193, 194^ 195, 196, and
287.)
'
_
•'
.' . :' :
,
. Oumulative sinkingfund.
-..* •.
During the fiscal year $274,516,965.89 became available for^ the
purchase of Liberty bonds and Victory notes for the cumulative
sinking fund established by section 6 of the Victory Liberty loan act,
approved March 3, 1919. This amount consisted of the primary
credit of $253,404,864.87, a balance of $1,385,434.16, brought forward
from the previous fiscal year, and thesecondary creditof$19,726,666.86,
representing interest for the fiscal year 1922 on securities purchased
for the sinking fund. In this connection the following public an^nouncement was made on August 14, 1922: *^The Secretary of the
Treasury announces that the second fiscal year's operations under the
cumulative sinking fund established by the act approved March 3,
1919, were completed June 30, 1922, and that $275,896,000 face
amount of Liberty bonds and Victory notes were purchased and
retired for account of the sinking fund during the fiscal year. . The total
principal cost of the bonds and notes purchased was $274,481,902,16."
This left an unexpended balance amountiag to $35,063.73 t o b e carried over uito the fiscal year 1923. I t is estimated that during the
fiscal year 1923 a total of $283,838,800 will be available for the snaking fund, and that durmg the fiscal year 1924 a total of $298,872,000
will become available. Details concerning the securities purchased
during the fiscal year 1922, together with cumulative totals of all
securities purchased for the cumulative sinking fund, are shown in
the following table:
Title
Par amount.
i..:..
.'..
-..-...........
$11,-000.00
16,850.00
109,000.00
17,208,500.00'
. 240:650.00
211,017,000.00
47,293,000.00
$11,000.00
16,850.00
109,000.00
17,208,092.00
240,650.00
209,973,819.00
46,922,491.16
Total, fiscal y e a r . . . . ' . . . . . . . . . . . .
275,896,000.00
274,481,902.16
Cumulative total to June 30,1922.:....
537,146,250.00
529,326,478.66
First 3Vs
First 4i's
Second 4J's
Third 4i's
;
Fourth 4^'s
Victory ^ ' s
Victory 3|'s ..*...•....
:
.\......
Five per cent bond-purchase fund.
Principal cost.
.
. . /
In connection with its refunding operations, the Treasury made
further purchases of Victory riotes during the year under section
15 of the second Liberty bond act, as amended, on accbunt of the
so-called bond-purchase fund, as follows:
• • '^iy.6Victorv 44's
Victory 3|'s
-. -
Total
••
. Par aihount.
Principal cost.
$112,661,000.00
17,859,000.00
$111,741,075.07
17,727,631.41
130,520,000.00
129,468,706.48
46
REPORT ON THE FINANCES.
As the provision of the law providing for these purchases expired
by limitation on'July 2, 1922, there will be no more transactions in
the bond-purchase fund. During the whole time that the fund was
in operation, securities with an aggregate face value of $1,965,791,450
were purchased, at an aggregate principal cost of $1,876,413,174.59
Accrued interest paid amounted to $23,226,476.66.
Bonds purchased from franchise tax paid by Federal reserve banks. ,
The net earnirigs derived by the United States from Federal
reserve banks as franchise tax amounted to $59,974,465.64 for the
calendair year ,1921 and were applied to the purchase of Liberty bonds
and Victory notes as follows:
Title.
Third 4 i ' s . . .
Victory 4^'s.
Victory 3|'s.
Total, fiscal year 1922 .
Par amount.
Principal cost.
$50,885,000.00
8,707,000.00
741,000.00
$50,504,357.13
8,727,236.72
742,865.89
60,333,000.00
59,974,459.74
The aggregate value of securities retired from franchise-tax payments through the fiscal year 1922 is as follows:
Fiscal
Fiscal
Fiscal
Fiscal
year
year
year
year
1918.'...:
1920!
1921,..."..:
1922
Total............
.•
!
;
" $1,134, 234. 48
, 2,922,450.00
.60,724,500.00
60,333,000.00
125,114,184.48
Bonds purchased from repayments offoreign loans.
The following statement concerning bonds purchased from repayments of foreign loans was issued on August 14, 1922:
The Secretary of the Treasury announces that during the fiscal year ended June
30, 1922, $64,837,900 face amount of Liberty-bonds were purchased and retired by
the Treasury 'out of repayments of principal by foreign governments. These pm'chases were made piursuant to section 3 of the second Liberty bond act, as amended,
which provides that the Secretary of the 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 repayments from which the purchases in question were made comprise 132,511,994.26 of repayments by the French
Grovernment; $30,500,000 by the British Government on obligations deemed to haye
been given on account of Pittman silver; $878,500 by the Cuban Government; $440,552.83 bythe Belgian Government; $48,564.63 by the Serbian Government; a total of
$64,379,611.72 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 general program of repayment of the foreign obligations has begun.
The Liberty bonds retired on this account-were third 4J's, and the total principal
cost was $64,367,997.22.
47
SECRETARY OF THE TREASURY.
The following table shows the aggregate of bonds purchased from
repayments of foreign loans during the fiscal years 1919 to 1922:
Title.
Par amount.
Second 4i's:
Fiscal year 1921.
Third 4i's:
Fiscallyear
3
1919.
Fiscallyear
J
1920.
Fiscal13year 1921.
1922.
Fiscallyear
3
Fourth 4J'£
Fiscallyear
3
1920.
Fiscal1 3year 1921.
Total:
Fiscal year 1919.
Fiscal year 1920.
Fiscal year 1921.
Fiscal year 1922.
Grand total
Principal cost.
$2,145,950.00
$1,891,891.61
7,921,700.00
70,154,950.00
44,365,550.00
64,837,900.00
7,569,976.52
66,520,512.76
41,349,313.27
64,367,997.22
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
64,837,.9()0.00
7,569,976.52
68,750,995.08
70,669,004.88
64,367,997.22
219,368,800.00
211,357,973.70
All the bonds purchased have been canceled and retired and the
public debt reduced in corresponding amounts.
Bonds and notes retired on misceUaneous .accounts.
During the fiscal year ended June 30, 1922, retirements of Liberty
bonds and Victory notes received in payment of estate and inheritance taxes, forfeitures to the United States, gifts, arid miscellaneous
receipts, were as follows:
.
Estate or
inheritance
taxes.
Issue.
First 3Vs
First 4^s
First 4 i ' s . . . ,
Second 4's...
Second 4i's..
Third 4 i ' s . - .
Fourth 4Vs..
Victory 4J's.
Total, flscal year 1922
$322,000
5,677,250
4,829,100
9,202,150
814,800
Forfeitures.
$60,400
200
2,150
650
49,050
6,650
18,250
2,500
Gifts.
MisceUa' neous
receipts.
$700
$100
100
50
50
: 500
550
87,000
50
200
163,650
,
20,845,300
139,850
1,900
251,100
Cumulative total to June 30,1922.,
50,666,350
178,850
15)250
380,200
TREASURY NOTES AND CERTIFICATES OF INDEBTEDNESS.
From November 15, .1921, to November 15, 1922, seven issues of
certificates of indebtedness, aggregating $1,424,697,000, were.sold by
the Treasury. Subscriptions in each case were closed on the day of
issue, with heavy oversubscriptions recorded. Duriag the same
period four offerings of Treasury notes were made, on which tot^l
allotruents amounted to $2,041,451,200.
The last annual report of the Secretary of the Treasury covered
Treasury note and Treasury certificate operations through the offerings
of November 1, 1921. The next issue was the usual quarterly oper-
48
REPORT ON THE FINANCES.
ation incident to the December 15 payment of income and profits taxes
and the maturity on December 15 of nearly $390;000,000 of tax certificates. Semiannual interest on~the first Liberty loan and the Victory
Liberty loan fell due on the same date. Two series of tax certificates
were offered, both dated December 15, 1921, one bearing 4J per cent
interest and maturing in six months, on June 15, 1922, the other
bearuag 4^ per cent interest and maturing in one year, on December
15, 1922. The combined offering, which was" for $250,000,000, or
thereabouts, met. with a prompt response from the investing public,
and subscriptions were nearly five tirries the offeririg, aggregating
$1,183,102,000. The total amount of subscriptions allotted was
$308,447,000, of which $64,903,0D0 was foTthe June 15, 1922, maturity and $243,544,0()0 for the December 15, 1922, maturity.
On January 26, 1922, the Treasury announced an offering of 4 |
per cent short-term Treasury notes, designated Series A^1925,
dated February 1, 1922, and due March 15, 1925. The offering was
made to cover the Treasury's current requirements, including
the maturity of about $250,000,000 of Treasury certificates on February 16, 1922, and at the same time to provide in part for refunding
the Victory notes maturing May 20, 1923, The offering was for
$400,000,000, or thereabouts, with the right reserved to the Secretary of the Treasury to allot additional notes up to one-half that
amount to the extent that payment was tendered in either 3i or 4f
per cent Victory notes. The offering was heavily oversubscribed,
total subscriptions aggregating $1,249,965,300. The amount allotted
was $601,599,500, including $200,000,000 on subscriptions for which
payment was tendered in Victory notes.
The next offering of certificates was announced for March 15, 1922,
the first quarterly tax payment date of the calendar year 1922.
Treasury certificates amounting to about $530,000,000 were maturing
on that date, with about $52,000,000 more due on April 1, 1922.
There was also payable on March 15, 1922, about $107,000,000 of
interest on the public debt. To provide for the cash requirements
remaining after the collection of income and profits taxes and other
ordinary revenues; an issue of one-year tax certificates, amounting to
$250,000,000, or thereabouts, was offered on March 15, 1922, bearing
4i per cent interest and maturing March 15, 1923. This rate was 1
per cent less than the rate six months earlier on certificates of similar
maturity. Total subscriptions for the offering amounted to $674,830,500, of which. $266,250,000 was allotted. For the same date announcement was made of an offering of 4f per cent Treasury notes,
designated Series A-1926, dated March 15, 1922, due March 15,
1926. These notes were offered only in exchange for 4 | per cent
Victory notes, and no fixed amount was announced for the issue.
SECRETARY OF THE TREASURY.
49
Subscriptions received before the (dose of business March 15, 1922,
amounted t o $617,769,700,. and were allotted in full.
To meet the current needs of the Treasury, including an interest
payment of aboul: $135,000,000 on the fourth Liberty loan, an issue
of loan certificates for $150,000,000, or thereabouts, was announced
for April 15, 1922, bearing 3^ per cent interest and maturing on
October 16, 1922. Notwithstanding the fact that the rate of interest
was the lowest since September, 1917, and three-fourths of 1 per. cent
lower than the rate on the last issue of similar maturity, the issue was
promptly oversubscribed, and subscriptions aggregated $309,212,000,
or more than double the offering. No allotment was made on oversubscriptions, total allotments being $150,000,000. To anticipate the
heavy payments due on June 15, 1922, an offering of tax certificates
was made On June 1, 1922, in the amount of $200,000,000, or thereabouts, bearing 3^ per cent interest and maturing December 15, 1922.
Certificates maturing June 15, 1922, and 3f per cent Victory notes
were accepted at par, with an adjustment of accrued interest, in payment for certificates of this issue. The offering m#b with a quick
response, and subscriptions, which closed at noon on the day of
issue, amounted to $383,541,500. No allotment was made on over^
subscriptions, and total allotments, therefore, amounted to $200,000,000. On June 15, 1922, the date of the second quarterly payment of income and profits taxes, there were payable about $380,000,000 of maturing Treasury certificates of indebtedness, about
$250,000,000 of 3 | per cent Victory notes called for redemption, and
about $125,000,000 of interest on the public debt. To meet these
payments an offering was made On June* 15, 1922, of one-year 3 | per
cent tax certificates due June 15, 1923, coupled with an offering of
three and one-half year 4f per cent Treasury notes, designated
Series B-1925, due December 15, 1925, which was intended to
provide further for the refunding of the Victory Liberty loan. The
rate of interest carried by the certificates vt^as one-half of 1 per cent
lower than the rate three months earlier on certificates of similar
maturity, and the rate on the Treasury notes was three-eighths of 1
per cent lower than the rate on the March 15 issue of Treasury notes.
The subscriptions received for the certificates aggregated $469,797,000, as against an offering of $250,000,000, or thereabouts, and the
amount allotted was $273,000,000. No fixed amount was announced
for the issue of Treasury notes, which were offered only in exchange
for 4 | per cent Victory notes, and the books on the offering
were kept open for two weeks in order to give holders of 4 | per cent
Victory notes' throughout the country ample opportunity to- make
the exchange. Subscriptions received before the closing of the books
on June 22, 1922, amounted in all to $335,141,300 and were allotted
in full. The terms of the combined offering were set forth in a letter
14263—FI 1922
4
50
REPORT ON T H E FINANCES.
of the Secretary of the Treasury accompanying the announcement of
the offering, dated June 8, 1922, which is attached as Exhibit 38,
page 188.
In coimection with^the maturity, on August 1, 1922, of about
$250,000,000 of Treasury certificates and the call for the redemption
of about half of the outstanding 4 | per cent Victory notes which
went oiit on July 26, 1922, an offering was made for August 1 of ^
4 i per cent Treasury notes, designated Series B-1926, due September 15, 1926. This rate marked a further reduction of one-eighth
of 1 per cent from the rate offered on the last previous issue of
Treasury notes six weeks earlier. The amount of the offering was
$300,000,000, or thereabouts, with the right reserved to the Secretary of the Treasury to allot a limited amount of additional notes
to the extent that payment was tendered in 4f per cent Victory
notes. Subscrip>ions on the primary offering aggregated $1,236,861,450, or more than four tunes the offering, and of this amoimt
$345,425,000 was allotted. The amount of exchanges of 4f per cent
Victory notes f®r the riew notes was $141,515,700, making the aggregate allotment for the issue $486,940,200. The terms of the offering
and the position of the Treasury at the tirrie were outlined in a circular
letter to the banks and trust companies of the country dated July
26, 1922, which is attached as Exhibit 40, p^ge 191.
The offering on September 15, 1922, the third quarterly income
tax date of the calendar year, consisted of one-year 3 | per cent tax
certificates. The offering was for $200,1300,000, or thereabouts,
and subscriptions, which closed at noon the day of issue, amounted
to $570,476,500, of which $227,000,000 was allotted.
Substantial progress has been made during the past year in the
retirement of Pittman Act certificates. The policy of the Treasury
has been to retire each month an amount equivalent to the amount
of silver certificates made available as a result of the ^coinage of
silver dollars, and in addition to retire from time to time out of the
general fund amounts of certificates not required to secure issues
of Federal reserve bank notes. The amount of Pittman Act certificates outstanding was thus reduced from $215,875,000 on June 30,
1921, to $74,000,000 on June 30, 1922. By October 31, 1922, it had
been reduced to $38,000,000.
Further details concerning certificates of indebtedness and
Treasury notes will be found in Exhibits 1 to 40, pages 126-191, and
in Tables A to G, pages 458 to 478. A summary of all issues of certificates of indebtedness from the beginning of the war to October
31, 1922, is given in Table G, page 476. The official circulars announcing the various offeruigs of Treasury notes, and loan and
tax certificates, together with offers to redeem before maturity
at the option of the holders, issued since the annual report of the
51
SECRETARY OF THE TREASURY.
Secretary of the Treasury for 1921, are attached as Exhibits 35 to
39, pages 184 to 189, and Exhibits 46 to 60, pages 205-215.
The aggregate amount of certificates issued from the beginning
of the war to October 31, 1922, was $54,671,462,309. Of this total,
$21,422,925,500 represent loan certificates, $12,412,625,000 were
sold in anticipation of income and profits taxes, and $20,835,911,809
comprise special issues. The following table gives in detail the
unmatured Treasury certificates of indebtedness and Treasury notes
outstanding on October 31, 1922:
Unmatured Treasury certificates of indebtedness and Treasury notes outstanding October
SI, 1922.
Detail.
Interest.
Certificates of indebtedness:
Series TD-1922
Series TD2-1922
Series TM-1923
Series TJ-1923
Series TS-1923
Date.
Per cent.
^ 4h Dec.
3i June
4i Mar.
31 June
3^ Sept.
Pittman Act..
Treasury notes:
Series A-1924..
SeriesB-1924..
Series A-1925..
Series B-1925..
Series A-1926..
Series B-1926..
June
Sept.
Feb.
June
Mar.
Aug.
15,1921
i, 1922
15,1922
15,1922
15,1922
Due.
Dec.'
Dec.
Mar.
June
Sept.
Amount.
15,1922 $166,945,500
15,1922
•58,062,000
15,1923 . 266,250,000
15,1923 273,000,000
15,1923 227,000,000
$991,257,500' .
38,000,000
15,1921 June 15,1924
15,1921 Sept. 15,1924
1,1922 Mar. 15,1925
15,1922 Dec. 15,1925
15,1922 Mar. 15,1926
1,1922 Sept. 15,1926
311,191,600
390,706,100
601,599,500
335,128,200
617,769,700
486,938,900
2,743,334,000
3,772,591,500
Total..
1 Various dates, 1918-19.
s 1 year from date of issue or renewal.
GOVERNMENT SAVINGS SECURITIES.
The sale of Government savings securities has continued throughout
the year with results which clearly demonstrate the usefulness and
increasing attractiveness of this class of securities. The various
offerings of savings securities have given to all classes of people, no
matter how small their means, an opportunity to invest in the obligations of their Government, and more important still, the pubhcity
given to these offerings has carried the message of economy and
thrift into every city, town, and hamlet in the coimtry, and there
are few homes in which the securities, in greater or lesser amounts^
may not be found. First issued in 1917, as one of the means of
meeting the financial requirements of the World War, the continued
sale of these securities has been of material aid to the Government in
the financing of its current requirements, and at the same time has
increased the prosperity and well-being of those who have saved and
bought them.
To meet the changing demand for securities of this class there have
been substantial changes in the character and terms of the securities
52
REPORT ON THE FINANCES.
offered. The first offering in 1917 included the 25 cent thrift stamp
and the $5 war-savings stamp. In 1919 Treasury savings certificates
of the $100 and $1,000 denominations were offered, with the addition
in 1921 of the $1 Treasury savings stamp and the $25 Treasury savings certificate. With the exception of the 25 cent and $1 stamp,
sold at face value and noninterest bearing, these securities were
issued in yearly series, at prices which increased from month to
month during each calendar year, and yielded to the purchasers interest at about 4 per cent per annum for the average period to
inaturity, and a lower rate if redeemed before maturity.
' The necessity of keeping constantly before the small investor a
security adapted to his needs and at the same time giving an interest
yield sufficiently large to be attractive, led to the offering of a new
issue of Treasury savings certificates on December 15, 1921, under a
plan whereby each certificate issued should mature five years from the
date of its issue, instead of at a uniform maturity date as was the case
with previous issues. The certificates were offered on a discount
basis, as formerly, but at fiat issue prices which would yield interest
at the rate of about 4 | per cent, compounded semiannually, if held
to maturity, and about 3^ per cent, compounded semiannually, if
redeemed before maturity. At the-same tinae arrangements were
made to coordinate postal savings and Treasury savings operations
and to inaugurate a peace-time savings movement under which the
Post Office Department and the Treasury would join to advance
postal savings for the deposit of savings and Treasury savings
certificates for investment.
The Secretary of the Treasury announced the new issue of Treasury
savings certificates and the unified savings program in the following
statement, which was issued on December 14, 1921:
The Treasury Department offers for sale to the public, beginning December 15,1921,
a new issue of Treasury savings certificates in denominations of $25, $10Q, and $1,000
(maturity value). The new certificates are issued on "a discount basis, as in the past,
but are offered for sale at flat issue prices instead of at prices, which increase from
month to month. The prices for the new issue, until further notice, will be as follows:
$20 for the $25" certificate, $80 for the $100 certificate, and $800 for fhe $1,000 certificate.
The certificates mature five years from the date of issue in each case, instead of at a
uniform maturity date, and if held to matuiity yield interest at the rate of about 4J
per cent per annum compounded semiannually. The certificates are redeemable before maturity at the redemption values stated on the backs of the certificates, upon
presentation and sm'render to the Treasury Department, Washington, and in that
event yield interest at the rate of about 3J per cent per annum, compounded semianniially. The $25 certificate bears the portrait head of Theodore Roosevelt, the $100
certificate that of Washington, and the $1,000 certificate that of Lincoln. The new
certificates are issued only in registered form,, in order to afford protection against loss
and theft, and will be recorded on the books of the Treasury Department in Washington. The name and address of the owner and the date of issue will be inscribed on each
certificate by the issuing agent at the time of issue. The terms of the certificates have
been much simplified as compared with previous issues, and the offering is, on a basis
which should prove particularly attractive to small investors.
SECRETARY OF THE TREASURY.
53
The limit of holdings has been increased by the act of Congress approved November
23, 1921, from $1,000 to $5,000, and it is now possible therefore to hold Treasury (war)
savings certificates of any one series up to an aggregate maturity value not exceeding
$5,000. This change makes the certificates attractive for the investment of trust funds
and the surplus funds of labor, fraternal, church and similar organizations which seek
an investment of intermediate length, with absolute safety and a satisfactory income
return.
The new certincates are on sale at about 4,000 post offices throughout' the country
beginning December 15, 1921, and may also be obtained at the Federal reserve banks
and such banks and other agencies as may qualify for the purpose.
Treasury savings stamps in the $1 denomination, noninterest bearing, will continue
on sale at post offices and other agencies until further notice, as a convenience to those
who wish to accumulate the purchase price of the new certificates through stamps.
The new offering means that postal savings and Treasury savings activities have
now been coordinated into one peace-time savings program^ under which the Post
Office Department and the Treasury will join to advance postal savings for the
deposit of savings and Treasury savings certificates for investment. The consolidation of postal savings and Treasury savings facilities into a single Government
savings system preserves and improves the best features of each. The plan is
designed to stimulate the accumulation of savings by accepting deposits in amounts
of $1 or more through the postal savings banks which are being conducted in the
post offices, and to encourage investment by offering Treasury savings certificates on
more attractive terms, in convenient denominations, both for direct sale and on
conversion of postal savings deposits. In order that Government savings facilities
may be available throughout the country, the Post-Office Department is now extending postal savings to many additional post offices, and the new issue of Treasury
savings certificates has already been distributed to several thousand post offices.
The sale will gradually be extended to other post offices as the demand broadens.
Postal savings deposits may be exchanged at postal savings offices for Treasury savings
certificates, and interest will be allowed on deposits withdrawn for this purpose at
the current postal savings rate for each full month up to.the first day of the month
in which the exchange is made.
The small war-time Treasury securities, comprising the 25-cent thrift stamp and
the $5 war-savings stamp, are accordingly being discontinued, effective December
31, 1921, but the thrift stamps outstanding will be accepted at face value for the new
Treasury savings securities or will be redeemed at face value in cash at post offices.
The main reliance for the accumulation of'small savings for investment in Treasury
savings certificates will henceforth be postal savings deposits, and now that special
provision has been made for the conversion of these deposits, the Government has
a unified and effective savings system, with the 10-cent postal savings stamp, postal
savings deposits from $1 upward, and $1 Treasury savings stamp and the $25, $100,
and $1,000 Treasury savings certificates.
In undertaking this movement for peace-time savings the Government looks forward with confidence to the renewed cooperation of all helpful agencies. There can
be no question about the need for saving, nor of this country's capacity to save. By
offering a uniform and comprehensive means of accumulating and investing money,
the Government hopes to furnish an incentive for saving, to encourage savings and
investment in Government securities, and at the same time to stimulate savings
activities generally. An active response to the Government's savings movement
should accomplish three main objects: it will aid the Government in the current
financing of its requirements; it will make for greater national prosperity; and it will
increase the personal happiness and individual welfare of those who save.
J n its savings activities in the past, the Government has received the hearty support
of many agencies and organizations interested in savings, including the American
54
REPORT ON THE FINANCES.
Federation of Labor, industries and other employers, teachers, bankers, postmasters,
and public officials throughout the country. With their continued cooperation, the
unified Government savings program will be assured of success.
The terms of the new issue thus announced appear in Department
Circular No, 270, dated December 15, 1921, attached hereto as
Exhibit 61, page 215. The regulations governing the surrender of
1921 war savings securities held by authorized agents were set forth
in Department Circular No. 271, dated December 20, 1921, attached
hereto as Exhibit 68, page 242. At about the same time. Department Circular No. 178, dated January 15, 1920, relative to holdings
of United States Treasury (war) savings certificates in excess of the
legal limit, was amended by a circular dated December 15, 1921, for
the purpose of covering the increase in the limitation of holdings
from $1,000 (maturity^value) to $5,000 (maturity value), authorized
by the act of Congress approved Noveinber 23, 1921. A copy of
the amended circular is attached as Exhibit 67, page 241. The
regulations further defining the rights of holders of Treasury savings
certificates of all issues and series and setting forth the terms and
conditions upon which such certificates will be payable in case of the
death or disability of the owner, as contained in Department Circular
No., 149, were further amended and supplemented by a revised circular dated August 1, 1922, attached hereto as Exhibit 69, page 246.
The regulations further defining the rights of War-Savings Certificates of all issues and series have likewise been revised by Department Circular No. 108, as aimended. and supplemented November 9,
1922, attached hereto as Exhibit 94, page 351.
In order to facilitate the conversion of postal savings deposits into
Treasury saviags certificates, the board of trustees of the Postal
Saviags System, at a meeting held December 7, 1921, adopted the
foUowing resolution:
V Resolved, That if and to the extent that postal savings deposits are withdrawn to
purchase United States Treasury savings securities through the Post Office Department, interest shall be allowed on the deposits thus withdrawn at the going rate allowed
on postal savings deposits (now 2 per cent per annum) from the first day of the month
following the date when such deposits were made up to the first day of the month
in which such withdrawal and purchase are effected.
Instructions to postmasters to put this resolution into effect on
January 1, 1922, were issued by the Director of the Postal Savings
System on Decembei 21, 1921, and provisions to this effect have
been inserted in the Treasury Department circulars offering Treasury
savings certificates.
. In carrying out the plan to coordinate the savings activities of the
Treasury and Post Office Departments, the Savings Division of the
Treasury, heretofore charged with the duty of promoting the sale of
Treasury savuigs securities, has been reorganized under the title
55
SECRETARY OF THE TREASURY.
''United States Government Savings System.^^ Moreover, the Director of Savings, a Treasury official, has been elected secretary of the
board of trustees of the Postal Saving^ Systeha, thus bringing the
savings organizations of both departments into harmony. The duties
of the old savings organization were threefold, viz: (1) To develop
and protect the secondary market for all issues of Government securities, (2) to sell Government savings securities, (3) to develop
in the people of the country, through education in the principles of
economy and thrift, habits of regular saving and investment in
United States Government savings securities. Under the reorganization practically all of the purely educational work previously conducted for the purpose of inculcating habits of economy and thrift
has been abandoned, and the whole effort of the new organization,
as well as the small sales organization maintained in the fiscal agency
departments of the 12 Federal reserve banks, has been directed
towards the conduct of an intensive campaign to sell the Government's
saviags securities. As heretofore the Postal System has been the
chief sales agency. In furtherance of this campaign the advantages
offered by the Postal Savings System for deposit of savings and
Treasury savings certificates for investment have constantly been
kept before the people through display advertisements in newspapers
(including foreign language papers), periodicals, and magazines, by
aieans of descriptive posters and circulars distributed broadcast
throughout the country, including a house-to-house distribution to
practically every home through the letter carriers, and through news
articles released to the city and country press. That this campaign
has been successful is demonstrated by the following table showiag
the cash receipts from the sale of Treasury (war) savings securities,
by months, from' the time they were first placed on sale in December,
1917, up to and including the month of October, 1922. I t will be
observed that the receipts in the first 10 months of 1922 are more
than five times greater than the receipts in the entire year 1921.
This is convincing evidence of the country^s capacity to save and
its responsiveness to the opportunities made available for this purpose.
Month.
January—
February..
March
April
Miay
.:
June
July
August
September.
October
November.
December..
Total.
1917
1918
1919
1920
1921
$24,559,722.15 $70,996,041.14 $8,987,462.59 $2,646,396.88
41,148,244.22 15,816,539.27 .5,221,213.48 3,324,164.22
53,967,864.49 10,143,081.68 6,063,359.22 2,838,416.58
9,572,728.48 4,815,437.69 2,471,904.05
60,972,984.12
6,558,198.33 3,552,962.19 1,682,606.72
57,956,640.12
5,269,535.51 3,107,909.72 1,481,271.98
58,250,485.00
5,175,865.12 2,359,274.53 1,403,106.07
'211,417,942.61
6,201,164.07 2,231,509.77 1,321,198.52
129,044,200.62
6,111,944.78 1,814,705.89 1,083,602.12
97,614,581.48
7,316,467.60 1,889,750.48 1,209,074.50
89,084,097.31
8,020,436.67 1,912,967.05 1,285,573.34
73,689,846.00
$10,236,451.32 63,970,813.47
9,124,292.13 1,934,452.46 2,245,408.97
1922
$8,896,071.56
8,693,242.30
9,880,942.69
10,749,347.94
10,542,156.31
12,059,050.88
14,183,629.47
11,544,404.78
13,661,364.60
18,763,085.89
10,236,451.32 961,677,421.59 160,307,294.78 43,891,005,07 22,992,723.95 118,973,296.42
56
REPORT ON THE FINANCES.
Increasein price of Treasury savings certificates.
In order to meet changing investment conditions and take advantage of the gradual decline in interest rates, the Treasury increased
the selling price of Treasury savings certificates, effective October 1,
1922, from $80 to $82 for a $100 certificate, with like increases for the
other denominations. For this purpose the issue of December 15,
1921, was withdrawn from sale and replaced by a new issue dated
September 30, 1922, similar to the old issue in all respects except
price. At the same time the $1 Treasury savings stamp was discontinued and withdrawn from sale. The Secretary of the Treasury
announced the changes in a public statement on September 16,1922,
reading as follows:
The Treasury announces that effective October 1, 1922, the issue prices of Treasury
savings certificates will increase to $20.50 for the $25 certificate, $82 for the $100
certificate, and $820 for the $1,000 certificate. At the new prices Treasury savings
certificates will yield about 4 per cent compounded semiannually if held to maturity
and about 3 per cent simple interest if redeemed before maturity. The new certificates
will be dated September 30, 1922, in order to distinguish them from the certificates
how on sale, which are dated December 15, 1921. The current issue of certificates,
which is being sold at $20 for a $25 certificate, $80 for a $100 certificate, and $800 for a
$1,000 certificate, will continue on sale until the close of business September 30, 1922,
and will then be withdrawn from sale in favor of the new certificates. Treasury
savings stamps, noninterest bearing, which are now on sale in the denomination of $1,
will Likewise be withdrawn from sale at the close of business September 30, 1922.
The current issue of Treasury savings certificates wasfirstplaced on sale December 15
1921, and since that date certificates up to about $115,000,000 (maturity value) have,
been sold. Sales have been running at the rate of about $15,000,000 maturity value
per month and there is every evidence that the certificates have proven increasingly
attractive to investors, c With sales satisfactorily established on a going basis and with
the improvement that has taken place in the investment markets, the time has come
to readjust the interest basis on which the certificates are sold and the Treasury has
accordingly decided to make the increase in price which is now announced. At the
new prices the certificates should continue to be highly attractive to investors, particularly small investors who desire to save systematically, and the Treasury looks
forward with confidence to the continued cooperation of all helpful agencies in promoting their sale.
Apart from the change in price the new certificates will correspond ih all essential
respects to the certificates now on sale. Each certificate matures five years from the
date of its issue, but rhay be redeemed at the option of the holder at any time after
issue, at the value indicated on the back of the certificate. The certificates are issued
only in registered form, in order to afford protection against loss and theft, and are
exempt from the normal Federal income tax and from all State and local taxation
(except estate or inheritance taxes). The aggregate amount of Treasufy savings certificates of any one series that may be held by any one person at any one time is
limited to $5,000 maturity value, and for this purpose the certificates issued within
any one calendar year, whatever the issue or the issue price, constitute one series.
Treasury savings certificates of all denominations may be purchased at post offices
throughout the country, at banks and other agencies, or froiA the Federal reserve
banks and branches, and mail applications addressed direct to the Treasurer of the
United States, Washington, D. C , will receive prompt attention.
SECRETARY OF THE TREASURY.
57
The terms of the new certificates thus announced appear in Department Circular No. 301, dated September 30, 1922, attached hereto
as Exhibit 62, page 224. The regulations governing the surrender of
the December 15, 1921, issue of Treasury savings certificates and of
Treasury savings stamps and Treasury savings cards" held by authorized agents were set forth in Treasury Department Circular No. 302,
dated September 30, 1922, attached hereto as Exhibit 70, page 265.
(See also Exhibit 66, page 240.)
Redemption and exchange of 1918 war-savings certificates.
The Treasury announced on November 15, 1922, its plans for
handling the war-savings certificates of the series of 1918 which
mature on January 1, 1923, to the amount of about $625,000,000.
For the convenience of holders of these certificates, it is offeruig
special facilities, first, for their exchange iato the new Treasury savings
certificates, with provision for advance exchanges beginning November 15, 1922, and second, special facilities for cash redemption on
and after January 1, 1923, with provision for presentation in advance
for redemption as of that date. Post offices and banking institutions throughout the United States t a v e received full information as
to the provisions for redemption and exchange, and will be in a
position to extend all possible assistance to their customers.
Beguming November 15, 1922, holders of 1918 war-savings certificates can exchange them at maturity value for Treasury savings
certificates dated January 1, 1923, and at the same time can get
advance payment of any cash difference by taking the largest amount
of Treasury savings certificates that their war-savings certificates,
taken at maturity value, will AJO ver. Exchanges after January 15,
1923, with any necessary cash adjustments, will be made as of the
date of exchange. Holders will not be able to make cash redemption
of their certificates before maturity, but beginning November 15,
1922, may present them in advance for redemption as of January 1,
1923, and in that event will receive on or about January 1, 1923,
checks payable to their order covering the redemption value. Registered war-savings certificates must be presented to the post office
where registered, but unregistered certificates are being received for
redemption or exchange at any money-order post office, any Federal
reserve bank or branch, or the Treasury at Washington. Banking
institutions generally are handling these transactions for their
customers, and holders of maturing certificates are urged to p»resent
their certificates, so far as possible, through their own banks and
trust companies.
The arrangements covering redemptions and exchanges, and the
regulations governing the presentation and surrender of maturing
certificates, appear in greater detail in (1) the Secretary's letter of
58
REPORT ON T H E FINANCES.
November 13, 1922, to the banking institutions of the country,
attached hereto as Exhibit 64, page 236; (2) the official circular (No.
308) as to redemption and exchange of war-savings certificates,
series of 1918, attached hereto as Exhibit 63, page 233; (3) Department Circular No. 310 as to redemption and exchange of Treasury
savings certificates, series of 1918, attached hereto as Exhibit 95,
page 358; and (4) the official form (P. D. 750), attached hereto as
Exhibit 65, page 238, which provides an application blank for either
redemptions or exchanges, and in that connection gives examples of
what holders of 1918 war-savings stamps can get by exchanging their
stamps for the new Treasury savings certificates.
MARKET PRICES OF LIBERTY BONDS AND VICTORY NOTES.
The rise in the market prices of Liberty bonds and. Victory notes
continued until about September, 1922, every issue having reached
or exceeded par by July. There has since been some reaction,
owing to the pressure of commercial demands and somewhat higher
rates for money, but all issues are still selling within a point or two
of par in the market. . The average increase in Liberty bond prices to
date since the low point reached in 1920 has been about 15 points,
or an increase in market value of approximately $2,500,000,000,
based on the amount outstanding at the present time.
The following table gives the low points reached by Liberty bonds
and Victory notes, and the closing quotations on July 15 and Decehaber 15, 1920, July 15 and December 15, 1921, and on the 15th of
each month from January to November, 1922:
Market prices of Liberty bondsand Victory notes.
Date.
Low point..
First
3Vs.
First
4's.
First
4i's.
Second Second
;4'S.
4i's,
Third
4i's.
F o u r t h Victory Victory
4i's.
4rs.
3rs.
1 $86.30 2 $83.00 3 $84.00 4 $81.70 4 $82.00 5 $86.00 4 $82.54 4 $94.82
* $94.72
1920.
J u l y 15.
Dec. 15.
91.02
90.12
86.10
86.02
86.44
86.12
85.26
85.10
85.42
85.36
87.90
85.68
85.90
95.92
95.00
95.90
95.00
86.50
95.10
87.12
97.30
87.34
97.40
86.92
96.84
87.02
97.04
91.16
98.14
87.16
97.42
98.32
100.02
98.32
100.02
98.60
96.94
. 96. 72
99. 86
99.20
100.18
100.80
100.80
101. 20
100.84
100.22
97. 70
96.34
97.20
99.70
99.60
100.00
100. 70
101. 22
100.80
100.00
98.10
97.80
96.86
97.32
99.86
99.76
100.02
100.82
101.16
100.64
99.34
98.34
97.60
96.76
97.30
99.72
99.52
99.98
100.52
100.46
100.18
99.18
97.98
97.84
97.56
98.56
99.92
• 99.90
99.98
100.34
100.48
100.34
99.30
98.38
97.78
97.20
97.50
99.94
99l90
100.06
100.92
101.20
100.66
,99.14
98.30
100.18
100.16
100.66
100.74
100.60
100. 56
100.54
6 100.826 100.74
6100.20
6 100.30
100.20
99.98
100.04
100.02
100.02
100.00
1921.
J u l y 15-.
Dec. 15.
1922.
Jan. 16...
Feb. 15..
Mar. 1 5 . .
Apr. 15..
May 1 5 . .
June 15..
.July.-15..
A u g . 15. Sept. 15..
Oct. 16...
Nov.15..
97.
96.
'97.
99.
99.
99.
100.
100.
100.
100.
97,
I J u l y 9, 1921. 2 M a y 19,1920. 3 M a y 18,1920. * M a y 20, 1920. ^Dec. 21, 1920. 6 Uncalled Victory 4f's.
59
SECRETARY OF THE TREASURY.
The improvement in the market prices of Liberty bonds has
without doubt been sustained by the successful development of the
Treasury's program for the orderly funding and gradual liquidation
of the short-dated debt. Fundamentally, however, the appreciation
of Liberty bonds has been due to lower rates for money and lower
prices for commodities, which inevitably bring better prices for
fixed income securities of the highest class; arid, contrariwise, with
slightly higher rates for money and higher prices for commodities, it
is only natural that there should be some fluctuations in the prices for
Liberty bonds. Prices of bonds have a close relation to money rates.
When funds are scarce and rates high, bonds sell at prices sufficiently
low that the yield may be commensurate with prevailing market
rates of interest. On the other hand, when funds are niOre plentiful and rates low, bonds sell at correspondingly higher plrices and
lower yields. The changes in the money and investment markers
have thus been reflected in the yields on Liberty bonds and Victory
notes as well as in their market prices. The following table shows
the average monthly yield of Liberty bonds and Victory notes for
July and December, 1920, July and December, 1921, and for each
month from January to October, 1922:
Yield on Liberty bonds and Victory notes.'^
Firstsecond
4i's.
First
Ws.
First
4's.
First
4i's.
1920.
July
Deceinber
P e r ct
4.049
4.117
Perct
4.959
4.974
P e r ct
5.221
5.248
1921.
July
Deceinber
4.359
3.804
4.863
. 4.185
5.129
4.440
4.429
4.372
3.717
3. 724
3.660
3.541
3.530
3.496
3.459
3.446
3.436
3.456
4.169
4.218
4.146
4.031
4.015
3.998
3.948
3.937
3.965
4.049
4.420
4.471
4.~397
4.278
4.262
4.245
4.190
4.181
4.215
4.295
4.327
4.321
4.322
4.273
4.244
4.220
4.144
4.177
4.213
4.193
Date.
Second Second
4's.
4i's.
Third
4i's.
F o u r t h V i c t o r y Victory
4f's.
4i's.
3rs.
Perct
5.399
5.437
P e r ct
5.959
6.296
P e r ct. P e r ct. P e r ct.
5.523
5.360
6.383
5.556. 6.919
5.896
4.989
4.237
5.258
4.485
5.771
4.657
5.390
4.491
5.681
4.707
4.670
3.707
4.215
4.260
4.175
4.048
4.030
4.004
3.971
3.971
3.991
4.062
4.464
,. 4.510
4.424
4.296
4.277
4.251
•4.214
4.218
.4.239
4.309
4.665
4.712
4.473
4.319
4.272
4.244
4.166
4.160
4.208
4.369.
4.480
4.529
4.431
4.280
4.258
4.240
4.171
4.162
4.208
4.305
4.626 '
4.569
3.821
3.539
3.639
3.508
3.431
2 3.678
2 3.703
2 4.170
3.627
3.667
3.584
3.500
3.343
P e r ct. P e r ct
5.129
4.546
5.164
4.594
1922.
January
February
March
April
Mav
June
July
August
."
September
October
(
1 Computed by the Government actuary.
2 Uncalled Victory 4l's.
With the reduction which has taken place in commercial loans
there has been a substantial decline during the past year in the
amount of.Government securities held as collateral for loans by both
reporting member banks and Federal reserve banks, though the last
few weeks have seen some increases in these loans. Even now, however, the amount of Government securities thus held as collateral is
only about one-half of the amount held a year: ago. , On- the
other; hand, reporting member banks and Federal.reserve banks,
following their own investment policies, have greatly increased
their investments in Liberty: bonds. Victory notes, and Treasury
60
REPORT ON T H E FINANCES.
notes during the same period. The amounts owned by reporting
member banks increased from about $913,000,000 on November-2,
1921, to about $1,910,000,000 on November 1,1922; and the amount
owned by Federal reserve banks increased from $16,000,000 on
November 2, 1921, to $246,000,000 on May 3, 1922, from which
point it has been reduced to $156,000,000 by November 15, 1922.
The holdings of reporting member banks by October 11, 1922, had
fallen $34,000,000 from the high of $1,807,000,000 reached on September 6, 1922, but by November 1, 1922, their aggregate holdings
had increased to $1,910,000,000, largely as a result of allotments on
the October 16th issue of Treasury bonds. The following table gives
the amount of Liberty bonds, Victory notes, and Treasury notes
owned and held |as collateral by the weekly reporting member banks
and the Federal reserve banks at various dates:
Liberty bonds. Victory notes and Treasury notes owned and held to secure loans.
'
Date.
[Amounts in millions of dollars.]
Liberty
Federal reserve banks.i
bonds, Weekly reporting member banks.^
Victory
notes,
and
Treasury
Per cent
Per cent
Held
Held
notes
amount Owned,2 as
amount
as col- Total. of
col- Total. of
outstand- Owned.2 lateral.
outstandoutstand8
lateral.
ing.
ing.
ing.
1919.
20,240
Dec.31
1,294
2,170
10.72
1,070
1,072
1920.
June 30
Oct. 31
Dec.31
1921.
June 30
Oct. 31
Dec.31......
119,582
19,528
19,512
801
851
1,023
912
909
1,831
1,713
1,760
9.35
8.77
9.02
938
964
953
940
966
955
4.80
4.95
4.89
19,460
19,573
19,457
913
977
672
546
513
1,555
1,'459
1,490
7.99
7.45
7.6'Q
609
. 436
438
621
452
479
3.19
2.31
2.46
19,421
19,776
19,712
19,661
19,608
19,319
19,319
19,663
19,620
«20,180
1,237
1,148
i,210
1,347
1,442
1,571
1,742
1,793
1,766
< 1,910
450
427
394
346
317
285
257
259
261
<292
1,687
1,575
1,604
1,693
1,759
1,856
1,999
2,052
2,027
2,202
8.69
7.96
8.14
8.61
8.97
9.61
10.35
10.44
10.33
10.91
324
271
225
178
161
172
123
128
133
4 267
395
415
406
424
389
380
305
306
346
442
2.03
2.10
2.06
2.16
1.98
1.97
1.58
1.56
1.76
2.19
1922.
Jan. 31
Feb. 28
Mar.31
Apr.30
May 31
June 30
July 31
Aug. 31
Sept.30
Oct. 31
,
,
,
71
144
181
246
228
208
182
178
213
4 175
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 Partly estimated.
8 Includes a few loans secured by certificates of indebtedness.
«Iricludes Treasury bonds of 1947-52.
DEPOSITS OF GOVERNMENT FUNDS.
^
During the fiscal year ended June 30, 1922, deposits of Government
funds were maiatained with the following depositaries, in addition
to the Treasurer of the United States: Federal reserve banks and
branches (which also act as fiscal agents of the United States); spe
SECRETARY OF THE TREASURY.
61
cial depositaries; Federal land banks; national bank depositaries, both
general and limited; foreign depositaries and insular depositaries,
including the treasurer of the Philippine Islands. Statements indicating the numbers of such depositaries by classes and the amounts
of public moneys held by them, on the basis of daily Treasury statements, revised, at the end of the fiscal year 1921 and at the end of
the fiscal year 1922, are shown in the abstract of report of the Division of Deposits on page 439. The regulations governing the deposit.
of public moneys were revised duriag the year, and appear in Department Circular No. 176, as amended and supplemented May 15,
1922, attached hereto as Exhibit 96, page 362.
The fiscal year 1922 was marked by further retrenchment in deposits
of Government funds., Deposits with Federal reserve banks and their
branches necessarily show considerable variation from day to day
because of the great volume of Government busiaess transacted by
such banks ia the performance of their depositary and fiscal agency
functions. Deposits with special depositaries under the Liberty loan
acts are also subject to great variation substantially in direct proportion to the refunding operations of the Treasury; inasmuch as the
only deposits in which depositaries of this class participate are deposits of public moneys arising from such sales of bonds, notes, or
Treasury certificates of indebtedness of the United States as under
the terms 'of the official offering may be paid for by credit. The
resulting deposits are withdrawn from the banks from time to time
as needed to meet current disbursements of the Government, and,
generally speaking, the greater part of the deposits arising from any
given sale of Government securities are withdrawn within a period
averaging three or four weeks after the deposit. Deposits with Federal land banks under the provisions of section 32 of the act approved
July 17, 1916, as amended July 1, 1921, are temporary only, and
while the deposits made during the fiscal year 1922 aggregated $11,250,000, all of them had been repaid to the Treasury prior to June
30, 1922.
As a result of the coritinued application of the Treasury's established policy of designating and maintaining balaaces with general
national-bank depositaries only at points where actually necessary
for the performance of some essential Government business arid of
limiting such balances to the minimum required to provide for ithe
amount and character of the Government business transacted, further
important progress was made during the fiscal year 1922 in reducing
the number of such depositaries and the balances carried therewith
to the credit of the Treasurer of the United States. On June 30,
1921, there were 533 gerieral national-bank depositaries with total
fixed balances of $9,990,500, while on June 30, 1922, there were but
335 general national-bank depositaries with total fixed balances of
$8,804,500, a net reduction of 198 in the number of depositaries
62
REPORT ON THE FINANCES.
and $1,186,000 in the amount of the fixed balances. A recapitulation of all changes affecting the general national-bank depositary
system of the Government during the period under review is as
follows: General depositaries discontinued, 221; general depositaries designated, 23; fixed balances reduced, 67; fixed balances
increased, 44.
During the same period the Treasury further developed its policy
of designating limited national-bank depositaries of public moneys
for the sole purpose of receiving deposits made by United States
courts and their officers and by postmasters for credit to their official
checking accounts. These depositaries are not authorized to accept
any other deposits and hold no funds to the credit of the Treasurer
of the United States. On June 30, 1921, there were 187 limited
national-bank deppsitaries, while by June 30, 1922, the number of
such depositaries had increased to 845. On June 30, 1922, the
amount held by these depositaries and general depositaries to the
credit of Government officers, other than the Treasurer of the United
States, was $16,169,825.24, as against $16,036,064.70 at the end of
the preceding fiscal year, on the basis of daily Treasury statements,
revised. National-bank depositaries are required by Treasury regulations to pay interest at the rate of 2 per cent per annum on daily
balances, carried to the credit of the Treasurer of the United States
and to. the credit of Government officers other than the Treasurer of
the United States, so that the designation of limited national-bank
depositaries places on an interest-bearing basis the funds maintained
by United States courts^ and their, officers and local postmasters
throughout the country in the form of official checking accounts, thus
producing a substantial revenue which would not otherwise be received by the Government. Furthermore, the funds in question have
the benefit of the supervision given by the Treasury to depositary
banks and the collateral security pledged by such depositaries.
During the fiscal year ended June 30, 1922, the Treasury continued
to maintaua foreign depositaries of public moneys in France, Great
Britain, Italy, Belgium, and Haiti. The balances with such depositaries, however, t|o the credit of the Treasurer of the United States and
to the credit of other Government officers, on the basis of daily
Treasury statements, revised, were reduced from $52,258,530.78 on
June 30,1921, to $1,222,951.03 on June 30, 1922: Public Resolution
No. 61, Sixty-Seventh Congress, approved June 19, 1922, gives the
Secretary of the Treasury authority to designate depositaries of public
moneys in foreign countries and in the Territories and insular possessions of the United States, thus enabliag the Treasury to designate
and retain such depositaries where necessary for the transaction of the
Government's business. Previous legislation on this subject was
limited both as to duration and scope.
63
SECRETARY OF THE TREASURY.
Since Jime 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 depositaries under the Liberty loan acts, for the past 10 years are as follows:
Interest on Government deposits.
1913
1914
1915
1916
1917
$122, 218. 89
1, 409, 426. 07
1, 222, 706. 93
791, 671. 45
703, 771. 76
V Amended flgures.
1918
1919
1920
1921......:
1922.
$ 1 , 1 3 4 , 569.
5, 507, 742.
1, 865, 975.
1 2, 580, 746.
2 796^ 871.
09 •
43
76
84
71
2 Incomplete and subject to revision.
Special depositaries of public moneys are also required by Treasury regulations to pay interest on daily deposits at the rate of 2 per
cent per annum. The iaterest received on these deposits duringothe
fiscal year ended June 30, 1922, was $5,957,918.35. The total amount
received from April 24, 1917, to June 30, 1922, was $52,850,291.73.
This is shown by semiannual periods and Federal reserve districts
in the following statement:
Interest collected to June SO, 1922, by Federal reserve districts^.on deposits in special
depositaries on account of sales of Liberty bonds. Victory notes. Treasury notes, and
certificates of indebtedness, and income and profits tax payments under acts of April
24, 1917, September 24, 1917, April 4, 1918, September 24, 1918, July 9, 1918, and
March S, 1919.
Federal reserve district.
Boston,
New York
Philadelphia
Cleveland
Richmond
Atlanta
New Orleans branch.
Chicago
St. Louis
Minneapohs
Kansas City
Dallas
San Francisco
Total.
Federal reserve district.
Boston
NewYork
Philadelphia
Cleveland
Richmond
Atlanta
New Orleans branch
Chicago
St. Louis
Minneapohs
Kansas'City
Dallas
San Francisco
Total
Apr. 24 to June July 1 to Dec.
30,1917.
31,1917.
S5,340.47
338,480.60
1,044.64
Jan. 1 to June
30,1918.
July 1 to Dec.
31,1918.
1,353.62
2,726. 51
$495, 044.28
2.418, 335.72
200, 276.04
290, 482.56
81, 252.94
28, 189.21
26, 332.71
300, 428.59
• 56, 412.34
32, 520.68
39, 634. 27
35, 888.58
137, 996.92
S757, 345.98
2,486. 301.63
557,068.79
803, 219.84
128: 860.72
• 96,086.74
60, 320.38
048.19
726.24
168,309. 21
150, 897.61
80, 191.52
208,486.34
SI, 138,915.47
6,720, 162.97
1,059,668.15
872,392.10
109,503.64
144, 165.99
79,005.33
974,334.63
403,488.76
164,790.29
332, 145. 49
268,329.88
377,421.12
358,221.43
4,142,794.84
6,423,863.19
12,644,323.82
Jan. 1 to June
30,1919.
July 1 to Dec.
31,1919.
Jan. 1 to June
30,1920.
$733, 867.20
2,968, 858. 77
596, 436.23
696, 750.48
242, 735.18
203, 550.98
•88, 140.55
1,107, 399. 81
369, 783. 56
311, 793.53
309, 106.79
132, 65L09
590, 811.02
$583, 524.88
3,336, 357. 90
529, i02. 81
530, 146.39
555, 390.68
153; 908.04
40, 666.90
817, 172. 84
264, 058.53
171, 863.85
159, 047.57
182: 127.60
246, 486.13
$254,689.51
1,887,688.21
171,509.48
352,082.30
140,635.35
82,811.99
61,682.62
355,685.31
100,947.90
104,223.-41
95,489.75
118,843. 58
182,833. 46
$131,904.55
837,038.64
123,242.32
98,748.63
29,202. 82
17,182.07
23,774.93
159,607.51
45,418.04
19,254.89
49,622.84
15,256.09
97,164.11
8,351,885.19
7,549,854.02
3,909,122:87
1,647,417.44
252.06
"9," 023.'53'
July 1 to Dec.
31,1920.
64
REPORT ON T H E
FINANCES.
Interest collected to J u n e SO, 1922, by Federal reserve districts, etc.—Continued.
Federal reserve district.
Boston
New York
Philadelphia
Cleveland
• Richmond
Atlanta
New Orleans branch
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
:....
San Francisco
Total
Jan. 1 to June
30,1921. '
July 1 to Dec.
31, 1921. •
$197,098.16
905,079. 42
203,114.68
170,999.61
61,321.73
16,393.10
5,417.03
87,765.18
55,839.57
39,930.85
40,237.12
17,151. 75
64,542.38
$229,145. 55
1,382,584.79
296,937.77
339,829.56
53,373.59
20,544.91
10,288.39
1,864,890.58
3,073,661.14
Jan. 1 to June
30, 1922.
356,846.54
93,306.68
74,455.39
63,463. 86
49,760.21
103,123.90
SECURITIES OWNED BY THE UNITED STATES
Total.
$293,199.36
1,130,984.88
196,007.92
208,690.66
105,497.31
44,474.72
24,339.61
412,204.08
109,287. 53
63,793.12
69,799.89
71,030.98
154,947.15
$4,800,075.41
24,411,873.53
3,934,408.83
4,363,342.13
1,507,773.96
807, 559.81
• 419,968.45
5,238, 516.21
1,767;269.15
1,150,935.22
1,309, 445.19
972, 584.80
2,166, 539.04
2:884,257.21
52,850,291.73
GOVERNMENT.
The aggregate amount of securities owned by the United States
Government on June 30, 1922, as reported to the Treasury and
shown in detail in Exhibit 76, on page 277, waSp$l 1,057,052,849.92, as
against a total of $11,326,731,680.72 at the close of the previous
fiscal year, a net decrease of $269,678,830.80, due principally
to sales during the fiscal year of $263,258,750 face amount of
equipment trust gold notes acquired by the Director /General of
Railroads pursuant to the Federal control act approved March 21,
1918, as amended, and the act apprbved November 19, 1919. For
descriptive purposes, the securities owned on June 30, 1922, may be
divided into five main classes, namely: (1) foreign obligations,
$10,045,393,404.64, principal amount; (2) capital stock of war
emergency corporations, $327,492,835.92, par amourit, after deducting
cash deposited with the Treasurer of the United States to the credit
of such corporations; (3) railroad securities, $456,505,129.93,
principal amount; (4) Federal land bank securities $142,899,880;
and (5) miscellaneous securities, $84,761,599.43. Interest accrued
and unpaid is not included in the figures.
The foreign obligations, in the aggregate amount of
$10,045,393,404.64, include (a) loans to foreign Governments under
authority of the acts approved April 24, 1917, and September 24,
1917, as amended (on the basis of cash advances less repayments of
principal), $9,386,422,556.14; (&) foreign obligations received from
the Secretary of War and the Secretary of the Navy on account of
sales of surplus war supplies, $574,876,884.95; and (c) foreign obligations received from the American Relief Administration ori account
of relief pursuant to the act approved February 25, 1919,
$84,093,963.55. The total of these obligations on June 30, 1922,
was $38,523,801.95 less than on June 30, 1921, as a result of repay-
SEORETARY OF THiE TREASURY..
65
ments b y foreign Governments on the principal of their obligations,
pursuant to special agreements or on adjustment of accounts.
The stock of war emergency corporations owned by the United
States, amounting in the aggregate to $327,492,835.92, after deducting
cash deposited to their credit with the Treasurer bf the United States,
includes the capital stock of the United States Shipping Board
Emergency Fleet Corporation, the Hoboken Maiiufacturers^ Railroad
Company, the United States Housing Corporation, the Uriited States
Sugar Equalization Board (Inc.), the United States Grain Corporation, the United States Spruce Prbduction Corporation, and the
War Finance Corporation. The total increase in this class of securities during the fiscal year 1922 was •$58,942,459;35, whicb results
first, from a reduction of about $94,000,000 in the balanciB with the
Treasurer to the credit of the War Finance Corporation, operating
as an offset against the amount of the outstanding capital stock
of this corporation; second, a reduction of $25,000,000 in the outstanding capital stock of the United States Grain Corporation
effected on October 17, 1921; and, third, payments received from
the Housing Corporation.
The railroad securities, amounting in the aggregate to $456,505,129.93, consist of (a) the obligations of carriers acquired under
section 7 vOf the Federal control act approved March; 21, 1918, asamended (exclusive of obligations of carriers acquired by the Director
General of Railroads from the operating revenues of carriers under
the provisions of section 12 of the above-mentioned act), $55,867,000;
(b) equipment trust gold notes acquired by the Director Gerieral of
Railroads pursuant to the Federal control act approved March 21,
1918, as amended, and the act approved November 19, 1919., to pro^
vide for the reimbursement of the United States for motive power,
cars, and other equipment ordered for carriers under Federal control,
$49,999,800; (c) obligations of carriers acquired pursuant to section
207 of the transportatiori act approved February 28, 1920, through
the funding of indiebtedness of the carriers to the United States, on
account of matters arisuig out of Federal control, $116,646,500; and
(d)-i]ie obligations of carriers, acquired pursuant to sisction 210 of the
transportatioh act approved February 28, 1920, as amended (loans
to railroads .irom the $300,000,000 revolving fund provided under
section 210), $233,991,829:93.
The holdings of railroad securities decreased during the fiscal year
$223,933,523.74, due pruicipally to sales of $263^258,750 face amount
of equipment trust gold notes of carrier corporations described in
(b) above. The sales were made all a t par and accrued interest, and
the proceeds, 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,'^becoming available for
14268—FI 1922
5
66
REPORT ON T H E FINANCES.
use by the Director General of Railroads in the settlement of matters
growing out of Federal control.
The Federal land bank securities; in the aggregate face amount of
$142,899,880, consist of {a) capital stock of the 12 Federal land banks
still owned by the United States, $4,264,880, and (6) Federal farm
loan bonds^ acquired pursuant to the act approved January 18, 1918,
as extended by thejoiht resolution approved May 26,1920, aggregating
$138,635,000. During the fiscal year 1922 repayments were made
by the Federal land banks on their capital stock owned by the United
States, amounting in the aggregate to $2,435,795. The holdings of
farm loan bonds decreased $44,400,000 on account of repurchases by
the Federal land banks of their bonds acquired by the United States
pursuant to the, above-mentioned provisions of law. On June 30,
1922, the holdings of farm loan bonds consisted of $136,885,000
4^ per cent bonds (the same figure as on June 30,1921), and $1,750,000
priacipal amoimt of 5 per cent bonds, which is $44,400,000 less than
on June 30, 1921, due to repurchases above mentioned.
The miscellaneous securities reported, ainounting in the aggregate
to $84,761,599.43, consist of (a) securities received by the Secretary
of War on account of sales of surplus war supplies, $29,138,771.32;
(&) securities received by the Secretary of the Navy on account of
sales of surplus property, $9,870,377.78; (c) securities received by
the United States Shipping Board on account of sales of ships, etc.,
$38,752,450.33; and (d) capital stock of the Panama Railroad Co.,
$7,000,000. The decrease in the amount of miscellaneous securities
from $104,089,768.89, as of June 30, 1921, is due principally to a
decrease in securities held by the United States Shipping Board,
amounting to $29,023,452.14, which represents, for the most part,
sales of securities by the board.
During the fiscal year 1922 the Sugar Equalization Board (Inc.),
whose capital stock of $5,000,000 par amount is owned by the
United States, deposited its cash assets which, on June 30, 1922,
amounted to $14,369,856.84, to the credit of the board with the
Treasurer of the United States. The capital stock of the United
States Spruce Production Corporation, amounting to $10,000,000,
was added to the statemerit during the fiscal year, while deposits of
the corporation with the Treasurer of the United States, carried as
an offset, amourited on June 30, 1922, to $3,457,806.55. The capital
stock of the Pariama Railroad Company, in the amount of $7,000,000,
was also added to the statement of securities during the fiscal year
1922.
'
'
The securities reported by the Treasury, as owned by the United
States are held in safekeepiog by the Treasurer of the United States
and the Federal reserve banks and branches to the extent that they
have been turned over to the Treasury. Many of the securities, how
SECRETARY OF THE TREASURY.
67
ever, though reported to the Treasury and carried in the statement,
are still held by other departments and agencies of the Government,
but the aggregate amounts so held are relatively small as compared
with the total.
RAILROADS.
During the past year the Treasury has continued to make payments to railroads under the transportation act of 1920. These payments, have been made in accordance with certificates issued by the
Interstate Commerce Commission under the following sections of
the act:
Section 204: For reimbursement of deficits of the so-called ^^ shortline^' railroads during Federal control.
Section 209: For the guaranty of net railway operating income
during the six months' period immediately following the termination
of Federal control on March 1, 1920.
Section 210: For new loans.
Copies of the above-sections, as amended, will be found on pages
215-222, inclusive, of the annual report of the Secretary of the
Treasury for the fiscal year ended June 30, 1921.
Section 204.
In making payments under this section the Treasury is required,
upon request of the President, to deduct from the amount certified
to be due to the carrier the amount certified to be due from the carrier to the President, as operator of the transportation systems under
Federal control, and payable to his agent, the Director General
of Railroads. From November 15, 1921,'to November 15, 1922,
$1,949,180.72 was paid under section 204; $1,928,586.44 to the
carriers directly, and $20,594.28 to the Director General. The Interstate Commerce Commission estimates the total aniount payable under this section at $15,204,272.57. Of this sum $5,139,550.45 in the
aggregate had been paid up to November 15, 1922; $4,166,954.51 directly to the carriers, and $972,595.94 to the Director General. I t
is expected that about $8,000,000 of the remainder will be certified for
payment duruig the balance of the present fiscal year.
A statement showing partial and final payments to carriers under
section 204 of % the act, together with the deductions therefrom, for
the period from November 15, 1921, to November 15, ° 1922, is
attached as Exhibit 73, page 272.
Section 209.
From November 15,1921, to Noveniber 15,1922, $19,622,039.83 was
paid to carriers under this section. According to estimates of the
Interstate Commerce Commission, the total amount payable under section 209 will aggregate $535,000,000. . Of this amount, $450,090,803.59
68
REPORT ON THE FINANCES.
in the aggregate had been paid up to Noyember 15, 19.22,^4eaving:an
estimated balance of $84,909,196.41 still payable, of which it is expected
that $75,000,000 will be certified for payment during the remainder
bf the present fiscal year. Final payments have been made to 105
carriers out of 676 accepting the guaranty.
A statement showing partial and final payments to carriei*s under
this section from November 15,1921, to November 15,1922, is attached
as Exhibit 74, page 273.
Section 210.
An appropriation of $300,000,000 was provided by.section 210 of
the transportation • act of 1920, as a revolving fund for loans to raUroads and for paying judgments, decrees, and awards rendered against
the Director General of Railroads. The loans made by the Treasury
to railroads under this section from November 15, 1921, to November
15, 1922, aggregated $58,419,450. Of this amount, $33,740,000
represented funds advanced to meet maturing loans previously made
under section 210. Repayments during the same period amourited
to $77,425,512.14, of which $41,253,142.14 represented payments in
advance of maturity.
;
Total loans made to railroads from the fund, up to and including
November 15, 1922, amoiinted to $317,886,667, while advances to the
director general for the purposes specified amounted to $17,999,997.97,
making total expenditures under this section $335,886,664.97.
At the same time receipts on account of the fund aggregated
$121,309,226.47, ofwhich $22,624,681.00 represented interest collected
and $98,684,545.47 repayments of principal. The balance to the
credit ofthe fund at the close of business on November 15, 1922, was
$85,422,561.50. Since the passage of the transportation act 84 railroads have availed themselves of the opportunity to borrow under
section 210.
During the year between November 15, 1921, and Noveniber 15,
1922, four railroads paid their loans in fuU, and twenty-six roads
reduced their loans. A few of the railroads defaulted ia interest payments on their loans, and one—the Atlanta, Birmingham & Atlantic
Railway Co.—defaulted on an installment of the principal. This
road went into receivership in February, 1921, about six months after
a loan of $200,000 (since reduced to $180,000) had been made to it
under section 210.
The following is a list of the carriers in default on their payments,
as of November 15, 1922:
Atlanta, Birmingham & Atlantic Ry. Co.:
Interest due Feb. 1, 1922
Interest due Aug. 1, 1922
'....
Principal due Aug. 13, 1922.
Interestdue Aug. 13, 1922..
.
$5,400. 00
5,400.00
'.. 20,000. 00
39.13
/
$30, 839.13
69
SECRETARY OF T H E TREASURY.
Kansas City, Mexico & Orient R, R. Co.: (Receiver),
Balance of interest due June 1, 1922
Virginia Southern R. R. Co.:
Toterest due July. 1, 1922
Waterloo, Cedar Falls & Northern Ry. Co.:
Interest due Apr. 15, 1922
Interest due Oct. 15, 1922.
Wichita Northwestern Ry. Co.:
Interest due Dec. 1, 1921.
,
Interest due June 1, 1922
$42,095. 83
1,140. 00
37, 800. 00
37, 800. 00
$9, 700. 20
11, 452. 50
21,152. 70
_ Total
"
170,827. 66'
A statement showing the amount of loans outstanding on November
15, 1921; loans made between November 15,1921, and November 15,
1922; and loans outstanding on November 15, 1922, is attached as
Exhibit 75, page 275.
CHECKING ACCOUNTS OF GOVERNMENT CORPORATIONS AND AGENCIES.
The United States Shipping Board Emergency Fleet Corporation,
the United States Housing Corporation, the War Finance Corporation,
the United States Grain Corporation, the Russian Bureau of the War
Trade Board, the several Federal land banks, the Railroad Administration, the United States Sugar Equalization Board (Inc.), and the
United States Spruce Production Corporation have maintained
checking balances with the Treasurer of the United States during the
year, in the manner outlined in previous annual reports of the Secretary of the Treasury. The two last-named accounts have been transferred to the Treasurer since the last annual report.
The following table shows the amount of checks on these accounts
paid by the Treasurer from the dates of the establishment of the account to October 31, 1922, and the balances on deposit with the
Treasurer on the latter date:
Checks paid by
the Treasurer of
t h.e./,Uni t e d
• States. •
Emergency .Fleet Corporation
United States Housing Corporation...
War Finance Corporation... . . . .
United'States Grain Corporation..'....
Russian Bureau of the War Trade
Board.
Federal land banks
Railroad Adininistration
United States Sugar Equalization
Board (Inc.).
- ^
United States Spruce Production Corporation.
Total
$6,947,051,355.78
146,851,143.97
3,362;331,338. 71
933,967,229. 41
13,333,773.99
17,237,642.21
1,832,743,323.12
25,000.00
Period.
Feb. 28,1918, to Oct. 31,1922.
July 27,1918, to Oct. 31,1922.
June 2,1918, to Oct. 31, 1922.
Oct. 31,1918, to Feb. 2,1922..
Nov. 30, 1918, to Sept. 28,
1920:
June 2,1920, to Oct. 31,1922..
Apr. 13,1918, to Oct. 31,1922.
Apr. 7, 1922, to Oct. 31, 1922.
$54,727,519.83
1,265)529.16
298,226,852.86
Dec. 20,1921, to Oct. 31,1922.
3,951,525.15
328.00
34,161,815.42
15,279,636.52
407,613,206.93
13,253,540,807.19
I Closed Feb. 2,1922.
Balances with
the Treasurer
of the United
States, Oct.
. 31,1922. '
2 Closed Sept. 28, 1920.
70
REPORT ON T H E
FINANCES.
The plans worked out by the Treasury for handling'these accounts
have operated to the entire satisfaction of all concerned. The result
has been to assure absolute security to the funds, and to save withdrawals of large amounts from the Treasury until actually needed'-^to
pay obligations of the Governmeiit, thus reducing the amoimt of
Government borrowings with a consequent saving in interest charges.
GOLD.
Although gold imports have continued heavy during the past year,
they have been considerably lower than during the preceding year, as
appears from the following table, which gives the imports and exports
of gold for the fiscal years 1921 and 1922, and from July 1, 1922, to
October 31, 1922:
Gold imports
Gold exports
Net imports
Fiscal year
1921.
Fiscal year
1922.
July 1 to
Oct. 31,1922.
$638,559,805
133,537,902
$468,318,273
27,345,282
$107,409,326
20,589,769
505,021,903
440,972,991
86,819,557
Total imports during the fiscal year 1922 showed a reduction of
$170,241,532 as compared with imports during the previous 12
months. The principal imports during the fiscal year came from tho
following countries:
France
England
Sweden
Germany
Canada
Denmark
British I n d i a
British Oceania
c.
-.
'.
$129, 650, 473
124, 503,143
55, 294, 298
19, 924, 893
19, 509,099
18, 924,110
14, 863, 765
13, Oil, 302 .
Exports of gold between July 1, 1921, and June 30, 1922, were
relatively unimportant, aggregating only $27,345,282, of which
$10,025,595 went to Hongkong, $5,519,339 to British India, and
$5,305,513 to Mexico. ,
Among the factors which have contributed to the reduction in
gold imports are: (1) the decline in this coun try ^s so-called favorable balance of trade; (2) the gradual exhaustion of the supply
of foreign gold available for export; (3) the cessation of gold importations by the Federal reserve banks (during the fiscal year 1921 over
$100,000,000 in gold previously held for their account by the Bank.
of England was transferred to this country); (4) a reduction in
foreign.gold production, due largely to strikes; (5) the increased
. absorption of gold by India and other far eastern countries; and
(6) therincrease in the woluine "of foreign* securities'sold to Amferican^
investors.
71
SECRETARY OF THE TREASURY.
The country's stock of gold has been further augmented by.gold
production in the United States. Dming the calendar year 1921
the amount produced in this, coun try was $50,067,300, or slightly less
thah'.dtiiihg the previous year. It is estimated that the production
for the first half of 1922 was at about the same rate. The amount of
gold coin and bullion consumed in the industrial arts during 1921,
however, is estimated at about $23,000,000, exclusive of old material
reworked, leaving an estimated net addition of about $27,000,000 to
the monetary stock from domestic production. The monetary stock
of gold, as shown in the monthly circulation statements, has been
increased by the inclusion since January 1, 1922, of gold bullion and
foreign gold coin held by the Federal reserve banks and agents.
Previously gold bullion and foreign gold coin were not included in the
monetary stock unless actually held by the Treasury.
The total stock of monetary gold in the United States increased
approx:imately:$487,000,000 between July 1, 1921, and June 30, 1922,
as compared with $589,000,000 during the previous 12 months, with
about $117,000,000 additional by October 31, 1922, so that at
present the stock is more than double the stock in 1913. I t i s estimated that at the present time the United States holds from 45 to
50 per cent of the world's stock of monetary gold, as compared with
about 23 per cent prior to the outbreak of the war in 1914. The
changes in the monetary stock of gold in this coimtry since 1913
are shown in the following table:
Stock of
monetary
gold in
United
States (in
milhons of
dollars)
J u l y 1—.
19i3.
1914.
.
1915
1916
1917
1918
1919
1920
1921
1922. . . .
1922 ( O c t . 31)
....:
.
.:
:
.
w
.
. . .
:
.
.
1,871
1,891.
1,986
2,450
3,019
. 3,076
3,113
.2,709
3,298
.
3,785
3,902
P e r cent
of a m o u n t
in 1913.
100
101
106
131
161
164
166
145
176
202
209
As in previous years, practically all of the gold imported during'
the past 12 months has found its way into the Federal reserve banks.
Between July 1, 1921, and June 30, 1922, the gold holdings of the
Federal reserve banks increased from about $2,462,000,000 to about
$3,021,000,000, or 22.7 per cent, as compared with an increase of
24.9 per cent during the previous 12 months. There has been a
further-iticr^Si^: of $57,000^000 from July 1 to October 31, 1922,=
and at the present time approximately 78.9 per cent of the monetary
72
REPORT ON THE FINANCES.
$tock of gold in the United States is included in the reserves of the
Federal reserve banks.
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 July 1, 1921: "
[In millions of dollars.] ' .
Stock of
T o t a l gold
m o n e t a r y holdings of
gold i n
Federal
• .United
reserve
States.' .
banks.
Date.
•
- ^
July............
August
September
' 1921.
.,
October
November
Deceraber
— .':....•
:..
'....
J
..."....•
January
February.. •
March
April
May
June.
July
August........V
September
October
November
"
• : . : . ' •
'
1
.'.
•
.:
,
2,462
2,553
2,641
. 2,726
2,800
2,849
3,298
3,259
3,449
3,524V
3,575'
' 3,616
....'.
1922. , :• •
::
.....:
Per cent increase from July 1,1921, to Oct. 31,1922
•
3,657
3,681,
3,721
3,751,
3,767
. 3,774
3,785
3,825
3,859
3,874 •
3,902
18.3
.
-
2,870
2,912
2,951
2,975
2,995
3,008
3,021
3,071
3,063
3,089
3,078
25.0
The Treasury has within the past year resumed the payment of
gold without demand and has thus done everything within its power
to restore the free and unrestricted circulation of gold. On March 18,
1922,, the Secretary of the Treasury issued the following statement:
The Secretary of the Treasury announces that the Treasury has now resumed payments of gold certificates in ordinary- eourse of business without demand, and that the
Fe.deral. reserve banks throughout the country will be guided by a similar policy in
making current payments for Government account. This action removes the last
artificial restriction upon gold payments in this country, though gold:-haSat^all times,
during and since the war been freely paid out by the Treasury and the Federal reserve
banks whenever demanded in payment of gold obligations.
This marks a return to the traditional policy of the United States
of paying out gold certificates freely with other forms of currency,
and a compliance with the spirit, as well as the letter, of the act of
March 14, 1900, as amended, under which the Secretary of the
Treasury is charged with the duty of maintaining the parity of all
fornas of money with gold.
Although gold certificates have been paid out freely by the
Treasurer since March of this year, and to some extent.by the Federal
reserve banks in making current payments for Government, account,
there has been no increase in the amount held outside of the Treasury.
The certificates which have been issued by the Federal reserve banks
SECRETARY OF THE TREASURY.
73
have come from their own holdings or have been obtained by exchanging gold certificates of large. denominations for those of smaller
denominations laore suitable for use in everyday transactions. In
this way the amount of gold certificates in circulation outside of the
Federal reserve banks has materially increased without requiring the
setting aside of additional gold as security therefor.
Under the law one-third of the gold held against gold certificates
must be in the form of coin. In anticipa^tion of an increase in the
amount of gold certificates outstanding, and in order to build up the
reserve stocks of the Treasury and the Federal reserve banks, the
coinage of gold has been resumed at the mints. Between April 1
and November 1 of this year the amount of gold coin held in the
Treasury increased by "about $80,000,000 and the amount held over
and above the one-third requirement against gold certificates outstanding, increased.from about*$32,000,000 to about $119,000,000.
Coincident with the resumption of current. payments in gold
certificates and the coinage of gold was the resumption of the printing of gold certificates. As gold certificates had been made legal
tender in 1919, the new certificates carry the legend, ^^This certificate
is a legal tender in the amount thereof in payment of all debts and
dues public and private. Acts of March 14, 1900, as amended and
December 24; 1919.^'
No change has taken place with regard to the Treasury's attitude
toward gold of Soviet origin, which, in accordance with the advice of
the Department of State, is not accepted when tendered at United
States mints and assay ofiices.
SILVER.
Purchases of domestic silver, pursuant to the so-called Pittman
Act, approved April 23, 1918, continued throughout the year, and
aggregated 56,636,809 fine ounces from June 30, 1921, to June 30,
1922, inclusive. Additional purchases, amounting to 22,649,070
ounces, had been made by October 31, 1922, so that by that date
140,011,576 fine ounces of silver had been purchased out of approximately 209,000,000 ounces melted under the act. Purchases by
months during the period under review were as follows:
Ounces."
l921~-July:...
August.
September
October
November
December
1922—January
February.
4,670,119 1922—March
April.....
- 4, 913, 614
May
3,471,436
June
'
5, 917, 997
July
3,447,000
August
5,424,025
September
2, 532,000
October
...........
, . . 3,444, 740
Ounces..
5, 370, 980
8,117,748
4,122,400
5,204,750
2,841,000
8,325,000
4,377,445
7,105, 625
Under the terms of the Pittman Act 270,232,722 silver dollars were
melted, and by October 31, 1922, 144,671,473 had.been recomed, the
greater-part of which is. held to secure outstanding/fsilver certificates.
74
REPORT ON T H E FINANCES.
This has greatly increased the accumulated coin in the mints, and their
storage capacity will be severely taxed by the continued coinage and
further accumulation of standard silver dollars for this purpose.
In^ accordance * with ? the • terms of t h e ^so-called Pittman^ Act, all purchases of silver thereunder are being made at the fixed price of $1
per fine ounce. The price of foreign silver, or silver which can
n o t qualify for purchase under the act, has been subject to various
infiuences during the yeaii^ although the fluctuations have not covered as wide a range as in the years immediately preceding. The
average monthly price of fine bar silver in New York during the past
year is shown in the following table:
. ^
1921—July
August
September
October J . :
November
December
1922—January
February
Price per
ounce.
1922—March
, . . . . $0. 60798
April
62070
May
66235
Juries:.
. 71373:
July..
68470
August
66250
September.
65853
October.
65696
..,
Price per
ounce.
$0. 64838
.67055
.71623
71604;
70693
. .69819
. 69888
68405
During the period the price of silver reached its highest poirit
on May 22, 1922, when it was $0.741875 per fine ounce and its lowest
point on July 1 and 2, 1921, when it was $0.59125 per fine ounce.
THE MINTS.
The coinage executed by the mints at Philadelphia, Denver, and
San Francisco during the fiscal year 1922 consisted principally of
double eagles and standard silver dollars. The coinage of gold,
which was resumed during the year, resulted in the minting of appro:5fiinately. $53,000,000 in double.-eagles. Small amounts of minor
coins were^truck in order to cleian up partially coiripleted lots. The
accumulation of subsidiary and minor coin now in the Treasury
and Federal reserve banks, it is expected, will be sufficient to last
throughout the coming calendar year and will preclude the necessity
of manufacturing coins of small denominations for some time
to come. I n addition to the manufacture of United States coins,
the coinage executed for foreign countries amounted to 11,916,030
pieces. The Mint Service purchased during the fiscal year under
review gold valued at $540,629,997.69.
SOLDIERS' BONUS.
On September 19, 1922, the President vetoed H. R. 10874, the
bill to provide for a soldiers' bonus or so-called adjusted compensationrfor^vetera^s: of the Worid War, a n ^
sustained the veto.
SECEETARY OF THE TREASURY.
75
During the consideration of the measure the Secretary expressed
his views with regard, to the bonus in two letters, dated January 24
and March 11, 1922, to the chairman of the Committee on Ways and
Means ^of the -House of ^Representatives, emphasizing, particularly theUnancial difficulties it would have involved. These letters are
included herein as Exhibit 90, page 329, and Exhibit 92, page 340,
xespectively.
On February 16, 1922, the President stated his stand in opposition
t o bonus legislation, unless a sales tax should be enacted or some
-other provision made for raising the needed revenues, by letter to
the chairman of the Committee on Ways and Means, which appears
lierein as Exhibit 91, page 339. A copy of the President's message
vetoing the bill as subsequentl}^^ passed by the Congress, is likewise
included herein as Exhibit 93, page 347.
HOSPITALIZATION.
The consultants appointed by the Secretary of the Treasury under
the act of March 4, 1921, which provided for additional hospital
lacilities for the veterans of the World War, have already completed
and turned over to the United States Veterans' Bureau the following
hospitals:
Bed capacity.
Fort Logan H. Roots, Little Rock, Ark
Lake City, Fla
,
Prescott, Ariz
Port McKenzie, Wyo
^
Port Walla Walla, Wash.
Bronx, New York City
Port Bayard, N. Mex.
Perryville, Md
Rutland, Mass.
.'.
Augusta, Ga^
1
:
270
100
422
245
165
1, Oil
.,.. 250
300
220
265
Total.
3, 248
I t is estimated that the following additional hospitals will be
completed. and turned over to the Veterans' Bureau within the
present fiscal year:
Bed capacity.
. Milwaukee, Wis
Dayton, Ohio
Marion, Ind
Oteen, N. C
Palo Alto, Calif
Tuskegee, Ala
St. Louis, Mo
:
Total..'.
,
:...
:
:
,
-
612
306
80
200
500
596
250
2,544
76
REPORT ON T H E FINANCES.
This leaves the tuberculosis hospitals at Chelsea, N. Y., and
Aspinwall, Pa., still to be ^completed, making a total of 6,265 beds
provided for,out of this appropriation.
In order that no deficit should be created in the funds allowed by
Congress under the act of March 4, 1921, a contingency which might
have arisen if the whole building program had been started at once,
it was necessary to delay two of the hospitals called for in the original
program until it was certain that (1) all the buildings contemplated
could be completed under the allotments made for them, and (2)
in case additions to institutions made necessary increased central
facilities that could not be foreseen at the beginning, there would
be money in reserve for these new requirements. The work on the
first 18 hospitals, however, has progressed so near to completion
that it is now possible to proceed with the tuberculosis hospital at
Chelsea, N. Y. Some delay was occasioned at the Chelsea Hospital,
however, by an existing agreement between the Treasury and the
Veterans' Bureau for a combined investment at the hospital there to
create a 500-bed institution, and the plans were drawn and submitted to the contractors for bids with this understanding. After
abiding by this joint arrangement for three nionths, however, the
Veterans' Bureau withdrew from the agreement. I t was then
necessary to readjust the plans, and ask for new bids on part of the
work, in order that a hospital of such size as could be undertaken
would come within the limit of the funds provided by Public Act
384. As the final plans for Chelsea required more money than had
been contemplated, it made necessary a modification of the plan3
for the hospital at Aspinwall, Pa.,.but these adjustments have now
been completed and work at the Aspinwall institution will be started
as soon as it is certain what funds can be released for it.
The final report of the activities under the act of March 4, 1921
(Public, No. 384), is nearing completion, and it is hoped will be ready
before long to be submitted to Congress. This report will not only
give a statement of the hospitals built under the act, but will show
the studies which the consultants made-preliminary to giving their
advice on the location, size, and character of these hospitals. These
studies indicate a method of approach to a problem which had never
been faced by any Government before, that is, the long-time hospitalization of ex-soldiers for diseases contracted during their serviceThere are also included charts showing the distribution of population, the general relation of drafted men to population, the number
of disabled men that may be expected from the age group drafted
into the Army, and from diseases acknowledged as traceable to service,
the present equipment in the way of hospitals in the United States,
with analyses by district and State, the prospective future hospital
demand, an analysis of transportation facilities, the relation of hospital
SECRETARY OF THE TREASURY.
77
care to-domiciliary care, the number of beds of different'types required, the standard floor plans of modern types of buildings with
elevations of finished structure, etc., the future use of these hospitals,
and the relation of these studies to the attempted Federal plan for
hospitalization on which the work of the future may be based.
During the year several changes were made in the administration
of the work connected with the care of the veterans, all tending
toward greater centralization. The United States Veterans' Bureau
was established by the act of August 9, 1921, and the Federal Board
of Hospitalization created by Executive order in November, 1921.
By the Executive order of April 29, 1922, all Public Health hospitals
carhag for sick and disabled veterans of the World War were transferred to the Veterans' Bureau, as were all supplies in the purveying
depots of the' Public Health Service purchased from funds allotted
by the Director of the Veterans' Bureau, together with all supplies
transferred to the Public Health Service for the use of veterans by
the War and Navy Departments and other Government agencies.
These changes have somewhat complicated the task of- the Treasury
ha carrying out the provisions of the act of March 4, 1921, but through
the cooperation of all concerned the work is progressing satisfactorily.
Copies of all standard plans prepared for the consultants by the
Supervising Architect's Oflice and by the architects of the National
Home for Disabled Volunteer Soldiers have been furnished to the
United States Veterans' Bureau for such use as it may deem advisable, and in this way a saving of time in the construction of other
hospital projects has been effected.
At the time that these hospitals were begun the construction cost
was above that of normal times, and it has steadil}^ risen since t h a t
time, especially during the last eight or nine months.
The following resolution was adopted by the National Tuberculosis Association on May 6, 1922:
Whereas, one of the results of the recent war has been the necessity that the United
States Government provide hospital care for a very large number of ex-service,men
suffeiing, not only from injuries, but from a number of chronic diseases, including
tuberculosis, nephritis, diabetes, and mental diseases, and
Whereas, the Secretary of the Treasury has provided, through a board of consultants
and its advisory committee, representing national voluntary health bodies, a carefully studied and comprehensive Federal liospital progi'am. Therefore, be it
Resolved, That this Association hereby expresses its hearty approval and appreciation of the action of the Secretary of the Treasury and of the work of the board of
consultants which he appointed.
Thanks are due to the National Tuberculosis Association, the
National Committee,for Mental Hygiene, the United States Veterans'
Bureau, the Federal Board of Hospitalization, the National Home for
Disabled Volunteer Soldiers, the War Department, the Navy Depart-
78
REPORT ON T H E FINANCES.
ment, the Catholic Hospital Association, and the principal and trustees
of the Tuskegee Normal and Industrial Institute for their cooperation
and help in the progress of this work of hospitalization.
A detailed statement showing hospitals completed and in process
of construction on November 13, 1922, will be found as Exhibit No.
89, on page 328.
PUBLIC HEALTH.
The policy undertaken last year of stationing officers in various,
ports of Europe, as well as in ports of Mexico, South America,. and
the Orient, for the purpose of assisting in the enforcement of the
United States quarantine regulations, has proved of signal advantage,,
and will be extended where necessary. The Federal quarantine
facilities will, however, require further improvement and extension
in order to provide proper protection against the introduction of
various diseases.
The Public Health Service lias maintained during the year its^
interstate relationships, with satisfactoiy results: plague-suppressive^
measures have been continued at New Orleans, Galveston, Beaumont, and San Francisco, and rodent surveys have also been continued in other parts of the United States to determine the possible^
presence of plague.
'
In connection with the work for .the prevention of venereal diseases, 16 institutes were held during the 3^ear. These were attended
by more than 6,000 persons from all parts of the United States.
The meetings proved of great value. Both the number and characterof the attendance showed the intelligent interest of the country in.
this branch of public health work.
The research work of the-service has made progress and could be
extended with great advantage intb other fields, notably cancer and
tuberculosis.
The collection and dissemination of inforniation regarding the
prevalence of disease, and the publication of Public Health Reportsand other statistical data have continued as heretofore.
No epidemic of serious proportions has occurred in the United
States during the past year. Unless the present disturbed economic
and industrial conditions in Europe improve, however, it is possible,
that there will be an increase in the prevalence bf certain diseases, and
it is more than ever important that the Public Health Service have^
sufficient facilities to provide protection against the introduction of
epidemic diseases into this country.
'
A radical change in the hospital work of this service took place
during the year. Fortj^-seveii hospitals acquired since the war and.
operating for the care of the disabled veterans were transferred to the-^
SECRETARY OF T H E TBEAS.XJRY.
-
79
United States Veterans' Bureau by the Executive order of April 29,
1922.^ This definitely terminated the responsibility of the Public
Health Service for providing medical care and treatment to veterans.
The hospital work of the service thus resumes the status which
existed previous to 1919. The number of beneficiaries other than
veterans has, however, increased very much since that time and this
increase promises to continue. The 24 hospitals remaining under the
operation of the Public Health Service, moreover, have receiyed only
slight repairs during the stress of emergency work, when they were
constantly filled to capacity. No extensive enlargements were:possible and the establishments require general rehabilitation and, in
many instances^ reconstruction along more modern lines.
Numerous requests have been received frora other branches of the
Government that the Public Health Service make medical examinations of persons entering the Government service, as well as periodic examinations of those already employed, and provide facilities
for the prompt relief of injuries sustained in line of duty, as is contemplated under the employees' compensation act. The industrial
medical service, begun among employees of the Public Health
Service early in the past year, has accordingly been extended to
other Government departments. This service has attenipted to
eliminate unnecessary absenteeism from sickness and other causes in
the same manner as has been done by private industrial concerns.
As an example of what can be accomplished by this means, the
records of one department where it has been in operation show a
marked decrease in the daily average of absences from all causes.
With the transfer of the hospitals to the United States Veterans'
Bureau there was, of course, a large reduction in the personnel of the
Public Health Service both in Washington and in the field. There
are 900 commissioned reserve officers of the Public Health Service
now serving in the United States Veterans' Bureau. These changes
in the personnel of the Public Health Service have made necessary
certain readjustments which are still in progress and which will not
be completed for some months to come.
PUBLIC BUILDINGS.
During the past year construction costs have not permitted any
general resumption of the construction of public buildings under
authorizations heretofore made. Nevertheless, in every instance
where local conditions appeared favorable bids have been solicited b y
public advertisement and, when acceptable proposals have been
received, contracts have been made, and building operations promptly
, 1 See Exhibit 88, page 325.
80
REPORT ON T H E FINANCES.
begun. During the same period the activities of the Supervising
Architect's Office have been concentrated effectively upon the work
of designing and constructing hospital buildings for the care of
veterans of the World War. The construction of public buildings
proper, and of, hospitals for the Public Health Service and Veterans'
Bureau, including additional facilities for hospitalization at plants
already established, is shown in detail in the abstract of the report
of the ^ Supervisiag. Architect's Office, which accompanies this report, pages 413 to 418. In this abstract will also be found statements showing the public building work authorized by Congress, the
financial operations of the Supervising Architect's Office for the fiscal
year ended June 30, 1922, and a classification of buildings, by titles,
with expenditures for^ each class, prepared pursuant to the act
approved June 6, 1900(31 Stat. 592).
National Archives Building.
The urgent need for a suitable building in Washington for the
preservation of the archives of the Government is beyond question,
and recommendations that provision be made therefor have been
urged upon the attention of Congress from time to time by the Secretaries-of the Treasury in their reports upon the state of the finances.
The accumulation of war records has aggravated the situation, and
the need for additional storage facilities is becoming more and more
pressnag. The construction: of such a building, moreover, would
release for other purposes much valuable space ia the executive^
departments and independent establishments which is now taken
up with records and files. Many of the Government's records,
though their loss would be irreparable, are now stored in nonfireproof
buildings, where they are in constant jeopardy. An estimate of the
appropriation necessary to acquire a suitable site, centrally located,
has again been submitted by the Treasury, and it is hoped that
favorable action will be taken at an early date.
Contractors^ war claims.
In examining contractors' war claims the available clerical force
that could be assigned to that duty was augmented by the detail to
Washington for the period allowed by law of such superintendents of
construction as could be spared. In the absence of legislation
authorizing further detail of superintendents of construction to aid
in this work, it became necessary to reassign those employees to the
field, and the settlement of claims has thus been more or less hampered by the lack of an adequate force. A summary of the claims
filed arid a statement of their status as of June 30, 1922, appear on
page 417 in.the abstract of the report of the Supervising Architect's
Office.
'
SECRETARY OF THE TREASURY.
'
Post-office buildings.
81
.
T
,
,
As the increase of the postal business bears so definite a relatioh to
the economic growth of the country, it is not surprising to find that
there, are at the present time many localities where the fkcilities for
handliag the naails, have become inadequate, and where the continued
use of Federal buildings constructed many years ago involves a great
sacrifice of time and efficiency. I t is hoped that Congress in the near
future will authorize such remedial measures as may be necessary to
provide for the situation, particularly in certain larger cities where
the Government is confronted with serious difficulties in its.efl:'orts to
give efficient mail service.. I t is also recomn3.ended that Coiigre^s
consider the advisability of eliminating from any post-office building
program the construction of post-office buildings, in small communities where the interests of the community, as well as the interest Of
the Government, are effectively served by haviag the postal; business carried pn^ in rented quarters. In. such sniall communities the
intereston investment, upkeep, operating expenses, and depreciation
of a Government-owned building are out of all proportion to the
benefits derived either by the Goverriment or the public.
The policy suggested, taken in connection with the present practice of using standardized types of post-office buildings, would promote economies in Government operations.
•
BUREIAU OF WAR RISK INSURANCE.
.,
The Bureau of War Risk Insurance continued as a part of the
Treasury Department during the early part of the fiscal year until
the passage of the Sweet bill, on August 9, 1921, when it was naerged
into the newly created United States Veterans' Bureau. The
Bureau of War Risk Insurahce was originally established September
2, 1914, for the purpose of providing adequate facilities for insurance
of the commerce of this cbuntry against the risks of war, and, after
our entry into the war, grew to be one of the largest bureaus of the
Treasury, having 5,025 employees on the date of its disconnection
from the department.
S O L D I E R S ' AND SAILOJRS' CIVIL RELIEF BONDS.
During the past year the United States Veterans' Bureau, in
cooperation with the Treasury and the Comptroller General, instituted measures looking toward final settlement with life insurance
coriipanies and associations* which continued insurarice for members
of the Military and Naval Establishments of the United States
under guaranty by the Government, as authorized by the act
approyed March 8, 1918, entitled, ^'Soldiers' and sailors' civil relief
14263—FI 1922
6
82
REPORT ON THE FINANCES.-
act." United States bonds, known as ^^Soldiers' and sailors' civil
relief bonds,", had been issued from time to time to the insurers
in connection with this guaranty, according to the general plan
described in the communication from the Director bf the Budget
to the President and by the President transmitted to the Speaker
of the House of Representatives, under date of May 6, 1922, which
reads, in part, as follows:
- Article IV of the act of March 8, 1918, provided in effect that the Bureau of War
Risk Insurance would under certain circumstances guarantee payment of premiums
owing by persons in the military or naval service on policies of life insurance to the
companies in which such policies were taken out. The purpose of this article was
to prevent the lapsation of such policies for nonpayment of premiums while the
insured was in the military or naval service. It is provided by section 408 of said
article that the Secretary of the Treasury should within a certain time deliver to the
proper ofiicer of each insurance company bonds of the United States to be held by
such insurance companies as a pledge for the:;paymeht of, unpaid premiums owing
by such persons in the military or naval service. It is prQyid^.d'by see
of
that article that at the expiration of one year after the termination of the war there
should be an account stated between each insurer and the United States. And
section 413 provides that the balance in favor of the insurer should in each case be
paid to the insurer by the United States upon the surrender by the insurer of the bonds
delivered to it from time to time by the Secretary of the Treasury.
In the third deficiency appropriation act for the fiscal year 1922,
approved July 1, 1922, Congress granted the authority and appropriation requested, and in due course final settlements will be made
and the outstanding bonds will be retired. It is expected that the
transactions will be completely closed by the end of the present
calendar year.
Total issues of United States bonds as guaranties for payment of
premiums under the act in question amounted to $195,500. By
June 30, 1922, $144,600 had been retired, and accordingly there
were outstanding on. that date $50,900. It is understood that the
amount appropriated by Congress, $25,000, will be sufficient to
cover net losses to the United States on this account, arid permit
the retirement of the bonds which remain outstanding.
THE COAST GUARD.
The results bf the operations of the Coast Guard during the year
have been most gratifying. The total number of persons saved or
rescued from peril was 2,954, or 1,333 more than in 1921. The
number of persons on board vessels assisted was 14,531. The instances of lives saved and vessels assisted numbered 2,224, and the
instances of miscellaneous assistance rendered by the various agencies
of the service nunabered 1,535, a total of 3,759 as against 2,788 for
theyear 1921. The value of vessels (including cargoes) assisted during the year was $35,346,765.
SECRETARY OF THE TREASURY.
83
I n the interest of the enforcement of the laws of the United
States, 21,586 vessels were boarded and examined during the year
by units of this service.
The other duties with which the Coast Guard is charged, aside from
those pertaining directly to the conservation of life and property from
^ shipwreck, include: International service of ice observation and ice
patrol, conducted under the terms of the international convention for
the safety of life at sea; winter cruising for the better protection of
shipping during the stormy season from December 1 to March 3 1 ;
the patrol of the. waters of the North Pacific Ocean, Bering Sea, and
southeastern Alaska; enforcement of the rules and regulations governing the anchorage and movements of vessels in the navigable
waters of the United States; the removal of derelicts and other
floating dangers from the paths of navigation; the enforcement of
the customs, navigation, and motor-boat laws of the United States;
patrolling and supervising regattas and marine parades; the examination of applicants for ^'certificated lifeboat men," under the seamen's act; rendering medical aid to deep-sea fishermen, etc. The
purpose of the patrol of the waters of the North Pacific Ocean,
Bering Sea, and Southeastern Alaska is to enforce, (1) the convention of July 7, 1911, between the United States, Great Britain, Russia, and Japan; (2) the act of August 24, 1912, for the protection of
the fur seal and the sea otter; and (3) the laws and regulations for
the protection of game, fisheries, and fur-bearing animals of Alaska.
Splendid" service was rendered by the Coast Guard last spring
during and after the devastating floods which swept the valleys of
the Ohio and Mississippi Rivers, and their tributaries, inundating
vast areas of land and causing widespread destruction. The departmeat dispatched the Coast Guard Cutters Kankakee and Yocona
to what appeared to be the best points of vantage in the flooded
territory, and also called on members of the four Coast Guard stations at and in the vicinity of Chicago, 111., for assistance. Through
the labors of those assigned to this expedition and their cooperation
with local and other relief agencies at work in the flooded regions, tons
of foodstuffs were transported and hundreds of persons were rescued
from positions of peril and taken to places of safety, with their live
stock, household goods, and other belongings. When the flood had
subsided, the Yocona made a cruise in the lower Mississippi and
picked up 300 refugees, with their personal effects, and returned
them to their homes. The cutter on this cruise also collected more
than 1,000 head of live stock, which were delivered to the owners.
The work of the Coast Guard in this connection has elicited warm
praise from the affected territories.
The Secretary of the Treasury awarded 30 life-saving medals of
honor of the,second class (silver) during the year, under the pro-
84
REPORT ON T H E FINANCES.
^'isions of law, in recognition of bravery exhibited in the rescue or
attempted rescue of persons in danger of drowning.
The attention ol Congress is invited to the reriiarks in the Annua}
Report for 1921 concerning the provisions for promotion in the coriamissioned grades of the Coast Guard. The bill to correct the harmful
situation occasioned by the'slow and limited promotion of the commissioned personnel is still pending in Congress. I t has progressed
to the point of a favorable report by the Committee on Interstate
and Foreign Commerce of the House of Representatives, and the
Treasury ventures to urge again that it be .enacted into law.
BUREAU OF ENGRAVING AND PRINTING,
The Bureau of Engraving and Printing delivered within the year
416,820,113 sheets of engraved securities and other Government
paper of all kinds, a decrease from the previous year of 21,874,711
sheets. The face value of perfect sheets delivered amounted to
$14,915,115,872.08, a decrease of $7,726,447,806.63 as compared with
the fiscal year 1921.
The number of employees was reduced from 6,950 on July 1, 1921,
to 5,683 on June 30, 1922, exclusive of 346 on indefinite furlough,
showing a net reduction of lj267 for the year.
NEW CURRENCY DESIGNS.
" In the last report to Congress reference was made to the plans of
the Treasury for the revision of the designs for paper currency.
Problems have arisen in connection with the preparation of the models
which have called for further study during the year, but progress is
now being made and it is expected that within the current year new
designs will be developed which will meet with general approval from
both the protective and the artistic viewpoints.
INTER-AMERICAN HIGH COMMISSION.
The United States section of the Inter-American High Commission
remained under the jurisdiction of the Secretary of the Treasury
during only a part Of the fiscal year 1922. It-had become manifest
that the work of the comnpiission was more closely related tp the
Department of Commerce than to the Treasury Department. At
the request of the Secretary of the Treasury, therefore, the President
relieved him of the chairmanship of the section, and on November
17, 1921, designated the Secretary of Commerce as chairman, the
Secretary of the Treasury remaining as honorary chairman.
The attention of the section during the period when theSecretary
of the Treasury was chairman was concentrated on two subjects;
(1) the exchanges betw:een the American Republics and (2) the compilation of accurate and complete data on financial conditions in the
SECRETARY OF THE TREASURY.
85
American Republics. The United States section invited the other
sections of the commission to collaborate on a survey of the various
factors affecting directly or indirectly the course of exchange between
the American countries. At the time of the change in direction of
the section's work, meetings of all the sections had been scheduled,
and several of them were held before the erid of the calendar year
1921. An account of the conclusions reached by these meetings and
the recommendations made will be found in the report of the present
chairman of the section.
^
Revision of the economic and financial reports prepared by the
United States section coritinued during.the first half of the fiscal year.
These reports were consulted by an increasing number of finaricial
and commercial representatives, as well as by the members of the
group committees. They are based in large part upon official economic, finaricial, and commercial reports and represent an attempt
to assemble available data covering the several Republics on such
topics as the national debt, systems of banking and currency, the
budget, sources of revenue, and objects of expenditures.
DISTRICT OF COLUMBIA TEACHERS' RETIREMENT FUND,
Pursuant to the provisions of the act of January 15, 1920, as
amended, there was placed to the credit of the District of Columbia
teachers' retirement fund $217,356.92 during the fiscal year 1922.
Upon the advice of the Commissioners of the District of Columbia,
Liberty bonds, aggregating $236,300, face amount, were purchased
during the year for the fund. This brings the face amount of the
investments held by the Treasurer for this fund up to $463,750, consisting entirely of 4^ per cent Liberty bonds. In addition to these
bonds there was an unexpended balance of $21,897.36, including
funds for investment with the Treasurer on June 30, 1922.
UNITED STATES GOVERNMENT LIFE INSURANCE FUND.
Under the provisions of section 18 of the act approved December
24, 1919, ,the Secretary of the Treasury is authorized to invest and
Teinvest in interest-bearing obligations of the United States all
moneys received in payment of premiums on converted insurance
in excess of the amount required for authorized payments or reserve.
The administration of the fund is vested in the Director of the
United States Veterans' Bureau, and investments are made by the
Secretary from time to time upon the basis of reports received from
the director as to the amounts ayailable for investment. All investments through the fiscal year 1922 are in Liberty bonds bearing 4^
per cent interest, and on June 30, 1922, amounted in the aggregate
to $60,077,650, face amount, of which $25,625,750 were purchased ,
during the fiscal year 1922. The securities so purchased are held in
86
. REPORT ON THE FINANCES.
trust by the Secretary of the Treasury for account of the fund, and
are verified from time to timie through reports to the Director. The
following statenient shows the holdings of the fund by loans, as of
June 30, 1922:
Par value.
' Pirst Liberty loan converted 4^ per cent b o n d s . . . . . . . . . . . . . $5, 584, 600
Second Liberty loan converted 4^ per cent bonds
16,932,400
Fourth Liberty loan 4^ per cent bonds
37, 560, 650 .
Total
60, 077, 650
THE CIVIL-SERVICE RETIREMENT AND DISABILITY FUND.
Section 8 of the act of May 22, 1920, requires the Secretary of the
Treasury to cause deductions to be withheld from all specific appro^
priations for salaries or compensation of those employees of the
Government to whom the act applies, equal to 2J per cent of such
employees' basic pay or compensation, and to transfer the amounts
so ascertained on the books of the Treasury to the credit of the
'^ Civil-service retirement and disability fund" which is appropriated
for the paynient of annuities, refunds, and allowances as provided
in the act. The Secretary of the Treasury is further directed to
invest from time to tinae i n interest-bearing securities of the United
States such portions of the civil-service retirement and disability
fund as in his judgment may not be immediately required for the
payment of the annuities, etc., the income derived from such investments to constitute a part of the fund. Under these provisions
$17,984,250, face amount. Liberty loan bonds had been purchased
up to the close of business June 30, 1922, of which $8,120,000 consists
of second Liberty loan converted 4 i per cerit bonds, and $9,864,250
of fourth Liberty loan 4^ per cent bonds. These bonds are all
registered in the name of the Secretary of the Treasury for account
of the civil-service retirement and disability fund, and are held in
safe-keeping by the Division of Loans and Currency of the Secretary's
office. The earnings on investments and reinvestments to June 30,
1922, amounted to $649,399.14.
Under the provisions of section 4 of the act, the administration
of the fund is vested in the Commissioner of Pensions, under the
direction of the Secretarj^ of the Interior. Section 16 of the act
requires the Board of Actuaries, one of whom is the Government
Actuary, to report annually upon the actual operations of the act,
and invests this Board of Actuaries with authority to recommend to
the Commissioner of Pensions such changes as in its judgment may
be necessary to protect the public interest and maintain the system
upon a sound financial basis.
SECRETARY OF T H E TREASURY.
SURETY BONDS.
87
.
On June 30, 1922, there were 32 surety companies holding certificates of authority issued by the Secretary of the Treasuiy t o execute bonds running to the United States, as provided in the act of
Congress of August 13, 1894, and the amendment of March 23, 1910.
There were also four companies organized in foreign countries, operating through branch offices in the United States, which were authorized to act only as reinsurers on bonds and other undertakings running to the United States. During the current fiscal year iour new
companies have qualified to tra;nsact business with the United States,
and the certificate of authority of one company has been revoked.
The regulations applicable to surety companies authorized to do
business with the Government, as originally embodied in Treasury
Department Circular No. 54, issued under date of September 21,
1910, have been revised during the period under review, and are now
in harmony with the insurance laws of the several States. A copy
of this circular appears as Exhibit 82 in this report, page 308.
There appears to be an almost constant increase in the number of
indemnity and surety bonds running in favor of the Uriited States.
The number of bonds executed annually is approximately 200,000
These bonds have to be examined and approved as to sureties by the
Treasury Departirient, with the exception of certain borids involved
in the operation of the Postal Service, bonds of alien emigrants, arid
some other miscellaneous bonds in which the Treasury has only an
indirect interest. During the past ten years the number of bonding
companies which have received certificates of authority from the
Secretary of the Treasury to execute bonds running to the United
States has more than doubled, and the work imposed by law in the
audit of the financial reports of the companies has correspondingly
increased'. This additional work has had to be performed by means
of details from other organizations, the statutory provisions for clerical assistance proving insufficient each year.
The experience of the Treasury in dealing with insolvent bonding
companies has clearly shown that the present method of supervision
over bonding companies and the control of data relating to bonds
executed by them is not adequate, and that the public interest would
be better served by centralized control of the entire bondirig work of
the Federal Government in one office, which would be a clearing
house for all bonds executed in favor of the United States. The
records of this office would show the number, class, arid character of
all bonds outstanding and executed by each company, and this data
would materially aid the Government in the preparation and filing
of claims against insolvent surety companies. Under the present
method, with the bonding work scattered thrbugh the Federal service
88
REPORO: ON T H E FINANCES.
and each department and office acting independently, without centralized recording, it is almost impossible to state all claims. There
are now pending for settlement. Government claims against such
companies amounting to about one million dollars. All told, about 35
companies have become insolvent, merged with other companies, or
voluntarily retired from business during the history of corporate
suretyship on Federal bonds, and of tlais number about l 5 have gone
into liquidation by reason of insolvency.
The General Accounting Dfece is the natural office to take over this
wprk and establish the centralized control and records, and the
Treasury has accordingly given its approval to the proposed transfer
of the surety bond work now performed by the Treasury to the Comptroller General Of the Uriited States. This will require legislation,
and It is understood t h a t the Comptroller General has already prepared a bill for subriiission to Congress which it is hoped will receive
eariy airid favorable corisideration.
TREASURY ORGANIZATION.
The principal changes in Treasury organization during the past
year were: (1) The creation of a Budget and Improvement Cominittee
for the preparation and examination of Treasury estimates of appropriations and for the improvement of administrative methods and
procedure within the Treasury; (2) the establishment of a Bureau of
Supply to act as a central purchasing agency in and for the Treasury;
and (3) the transfer on May 1, 1922, of 47 operating hospitals, with a
total bed capacity of about 17,500, containing approximately 13,000
patients, and a total operating personnel of about 11,500, from the
Public Health Service to the United States Veterans' Bureau by
Executive Order dated April 29, 1922. This transfer completed the
consolidation of all activities with respect to the veterans'• relief in
the United States Veterans' Bureau and relieved the Public Health
Service of all responsibility for providing medical care and treatment
of veterans.
Budget and Improvement Oo7nmittee;
Concurreritly with the establishment of the Bureau of the Budget
in the latter part of June, 1921, the President announced his determination to reduce Government expenditures to the minimum
amount consistent with proper administration, and called upon all
brariches of the Government to cooperate in improving business
methods and eliminating waste. The Treasury Department, through
its budget ofiicer and ^his assistants, has done its utmost to carry out
this program, and with highly gratifying results. On July 1, 1921, the
Bureau of the Budget, by direction of the President, called upon the
head of each department to examine carefully into its needs for the
SECRETARY OF THE TREASURY.
'
8'9
fiscal year 1022 to determine whut part of the funds ^already appropriated were indispensable in carrying on the work of the department,
the remaining portiori of each appropriation to be set apart.as a
general reserve. As a result of the survey of the Treasury. Departmerit, there was set aside in the general reserve $9,079,208.34. Subsequently reserves aggregating $596,210.25 were added, and from
time to time reserves amounting in all to $4,716,044.76 were released
leaving a net general reserve of $4,959,373.83, which may be regarded
as the Treasury's savings for the year. In addition, deferred expenditures on account of appropriations for constructionof buildmgs,
acquisition of sites, etc., amounted to $20,941,287.40.
On July 8, 1922, a budget and improvement committee was
appointed to assist in the preparation and examination of Treasury
estimates for appropriations; and to study existing pro.cedure within
the department with the view of improving methods of work and
bringing about a more effective organization. (See Exhibit 85, page
316.)
The committee first took up the department estimates for the
fiscal year 1924. Each member was assigned to one or more bureaus
or offices and was charged with the,special study of its activities and
requirements. Subsequently the estimates for each bureau or.
office were considered in detail by the entire committee in conference
with responsible officials, and each item was subjected to the test of
whether, in view of the urgent necessity for economy, it was absolutely necessary that the full amount requested be included in the
estimates. The recommendations of the committee were reviewed
b y . the budget officer, and the department estimates as finally
approved and submitted to the Bureau of the Budget were in the
aggregate $18,336,647.75 less than those originally submitted by the
various bureaus and offices.
Although the department estimates for the fiscal jeen 1923 had
been carefully revised before submission and the appropriations
made by Corigress were much below the estimates, heads of bureaus
and offices were called upon at the beginning of the fiscal year to
make a survey with the view of ascertaining whether ariy part of the
appropriations made might be set apart as a departmental reserve
to be used only for urgent-needs arisirig later in the year and then
only on the approval of the Secretary. Estimates submitted by the
heads of bureaus and offices as t o the amounts which might be thus
set aside amounted to $233,701.80. After review of the needs of all
bureaus and offices by the budget and improvehaent committee in
conference with the responsible officials, additional reserves of
$914,585.50 were set up making a total of $1,148,287.30 for the year
1923.
Aside from its work in connection with estimates, the budget and
improvement committee will conduct a continuous study of the
90
REPORT ON THE. FINANCES.
organization and business methods of the department with the view
of inaugurating improvements wherever possible. From tioae to
time special subjects are referred to it for investigation, and other
subjects the committee takes up on its own motion.
Bureau of Supply.
Under the provisions of Treasury Department Circular No. 283,
dated March 28, 1922, a bureau of supply was established in the
Treasury Department, effective as of April 1, 1922. The bureau
was given powers broad enough to cover the purchase of material
and supplies for all bureaus, divisions, offices, and services in the
Treasury Department in Washington and in the field, except the
Bureau of Engraving and Printing and the. purchase of distinctive
paper for Government securities.
The order of June 16, 1922, supplemeriting Circular No. 283,
directed that the bureaus concerned detail to the bureau of supply
such clerical and other personnel as were devoting any substantial
part of their time to the purchase, handling, or distribution of supplies, or to the keeping of records in connection therewith. This
order further directed that such appropriations or parts of appropriations as provided for the purchase of supplies should be allotted
to the bureau of supply. The first definite step toward effecting,
this centralization was taken on July 1, 1922, when the supply
functions formerly conducted by the chief clerk and appropriations
incident thereto, were transferred to the bureau of supply. Similar
action was taken between July 1 and September 30, 1922, by the
following: Division of Printing and Stationery, Division of Bookkeeping and Warrants, office of the Treasurer of the United States,
Bureau of Internal Revenue, office of the Commissioner of the
Public Debt, and the Public Health Service.
The work of this bureau is carried on entirely by employees detailed from the various offices of the Treasury from which the supply
functions have been transferred. The 76 employees now on detail
consist of clerks, messengers, and laborers. This number may be
slightly increased when all of the supply function^ of the several
Treasury offices have been taken over, but it is expected that as soon
as the organization is further perfected the work can be carried on
with less personnel than heretofore.
In addition to the ultimate reduction in personnel, it is expected
that economies will be effected mainly in three ways: (1) By consolidating stocks and surplus supplies; (2) by standardizing certain
supplies to permit purchase in large quantities; and (3) by centralizing accounting, thereby enabling the departnient to pay
vouchers promptly and so benefit by taking cash discounts whenever
available.
. SECRETARY OF THE TREASURY.
91
: A copy-of Department Circular No. 283 of March 28, 1922, is
attached as Exhibit 83, page 313, and the supplemental department
order of June 16, 1922, as Exhibit 84, page 314.
General Supply Committee.
During the fiscal year 1922, the General Supply Committee executed 811 contracts covering 12,792 separate items. The purchases
for the fiscal year amounted to $6,777,022.89, including $685,097.35
for supplies purchased by the departments from surplus property
held by the committee. The decrease from the amount purchased in
the fiscal year 1921 is due chiefly to generally lower prices. In order
to benefit by the descending scale of prices, many short-term con•tracts were executed, iastead of the customary contracts for the
period of a year. Whenever possible, a clause was inserted in the
long-term contracts guaranteeing to the Government the benefit of
any reduction in price, and where this clause was not inserted a
reduction was often granted when the attention of the contractors
was called to the variance between market and contract prices.
Estimates of their requirements for a given period were obtained
from the Government departments and establishments in Washington, and better prices were secured by soliciting proposals for furnishing these quantities as a whole at f. o. b. rates., Previously, the
term contracts under which purchases were made had provided for
the delivery, within the storeroom doors of the departments, of such
amounts as should be called for from time to time, with no agreement
for any definite quantity. With uncertainty as to the quantities
removed, and the cost of .delivering the supplies eliminated, it is
possible to obtairi contracts at much lower prices. Substantial
economy will result, therefore, from the ability to purchase ordinary
supplies used ha Washington in definite quantities with specified
dates of delivery, and from the storhig and distributing of such supplies from a central warehouse.
Surplus property.—Surplus property valued at $1,138,700.35 was
transferred to the committee, of which $685,097.35 was reissued to
' other departments. The proceeds of sales of unserviceable and
obsolete equipment amounted to $79,595.35. The invoice value of
surplus property on h a n d J u l y 1,1922, was approximately $2,000,000.
During the fiscal year the department received 17,081 typewriters,
and 3,263 of these have already been overhauled and reissued to
other branches of the Government all over the United States. About
$330,000 worth of miscellaneous stationery was received from the
Navy Department out of its surplus stock in various depots, and about
10 per cent of this stock has already been reissued to departments
in the District of Columbia.
92
REPORT ON THE FINANCES.
Attention is called to the necessity for proper storage space for
surplus property at present kept in temporary^wooden buildings at
East Potomac Park. These buildings, intended for use as temporary barracks, are highly inflammable and poorly suited for storage.
Constant work and expenditure is required to maintain them in condition to avoid serious daniage to their contents.
A statement showing the progress of the reissuance of surplusproperty, as provided for under the Executive order of December 3^
1918, is given on page 453.
Proposal for a central purchasing agency.—The work of the General.
Supply Committee has demoristrated that it is now opportune to
establish a central purchasing agency forthe Government as a whole,,
so t h a t economies may be effected by takiag advaritage of seasorialreductions, favorable trade conditions, purchasing in large quantities.,
from manufacturers, and prompt discounting of bills. The cost of
such a central agency would not be great, and it is recommended that.
this matter be given early consideration.
PERSONNEL.
After the transfer to the General Accounting Office of 2,372
employees at the close of the last fiscal year, the aggregate personnel
of the Treasury .on July 1, 1921, was 77,924. By the end of the^
fiscal year 1922, the number had been iurther reduced by 17,615 to60,309. The following table shows the number of employees in the^
departmental and field services of the Treasury on July 1, 1921, and.
on June 30, 1922:
liily 1,
1921.
Departmental service:
Public Health
War Risk
Others
:
Total
Field, service:
Public Health
War Risk
.
Others..
•
Total
.
:..
;
Total in Treasury
June 30,
1922.
248
Decrease.
703
4,793
20,388.
19,346
Abb
4,793.
1,042-
25,884
19,594
6,290
22,375
302
29,363
19,110
13,265
302
2 2,242
52,040
.40,715
11,325
77,924
60,309
17,615»
31,605
0
1.Includes 4,166 receiving SI per year.
1
2 Jncrease.
On August 9, 1921, the eritire personnel of the Bureau of War Risk.
Insurance, then numberkig 5,025, was transferred to the newly
created United ^States Veterans' Bureau. A further reduction in the^
number of employees in both the departmental and field services:
occurred on May 1, 1922, when 11,077 employees of the Public-
SECRETARY OF T H E TREASURY.
93
Health Service were also transf erred to the Veterans' Bureau. Other
reductions effected in the offices of the Treasurer,, the chief clerk of
the Treasury, the Bureau of Engraving and Printing, and the Division
of Loans and Currency ibrought the number of employees in, the
departmental service down to 19,594 on July 1, 1922. Between that
date and September 30) 1922, there has been a further decrease of
€88. employees. A classified statement of the number of employees
in the departmental service of the Treasury at the close of each month
from July, 1921, to September, 1922, wiir be fourid as Exhibit "86,
page 317."
The increase of 2,242 employees in the field services during the
y^ear was largely in the Internal Revenue Service, and is accounted for
by the number of additional agents necessary to enforce the national
prohibition act, and additional field auditors in coimection with the
.audit of income-tax returns. By September 30, 1922, the personnel
of the field services had been increased to a total of 41,081, the greater
part of this increase being in the Internal Revenue Service.
RETIREMENT OF CIVIL SERVICE EMPLOYEES.
On June 7, 1922, the President by Executive order extended the
provisions of the retirement act to include certain unclassified employees receiving $600 or more per annum; and on June 17, 1922,
Congress passed an amendment to the retirement act extending its
provisions to include certain unclassified employees receiving less
than $600 per arinum, thereby enabling the department to retire a
large number of employees of these classes who had reached the
retirement age and tb replace them with younger and more active
persons. At the same time the act permits the department to give
erhployees in these groups who have become old in the service something upon which to live after retirement. The retirement act was
further amended on September 22, 1922, by an act extending its
provisions, with certain modifications, to include employees 55 years
•of age or oyer who have served for a total period of not less than 15
years and who shall become involuntarily separated from the service
before reaching the retirement age, unless removed for cause on
charges of misconduct or delinquency preferred against them.
In this connection attention is invited to'the suggestions made in
the Annual Report of the Secretary of the Treasury for the year 1921:
{1) that the age limit for retirement should be lowered from 70
years to not more than 68 years, and (2) that the annuities granted
under the retirement act should be increased. The present annuities
a^re hot sufficient in themselves to support with any degree of comfort
those who are retired, and I believe that somewhat more liberal provisions would be justified.
..
94
REPORT ON TFIE FINANCES.
The following table shows the number of persons retired from the
service in the Treasury Department, their combined salaries, the
number to whom ahriuities have been granted, and the ainounts of
annuities for the period from* July V, 1921, to September 30, 1922:
Departmental seryice.
Field service.
Employees retired.
Number.
Salaries.
Number.
Salaries. •
165
119'
23
$208,677.00-
207,
246,037. 00-
•
On account
On account
On account
On account
of age
of age (piece rate).
. .
of total disability
of total disability (piece rate)
.
Total
'.
107 $152,255.00
29
64,218. 03
31 • 39,320. 00
9
14,539. 71
.
.
.176
270,332. 74
37,360.00-
I Employees retired who received fees, the amount of which is not readily obtainable.
RECAPITULATION.
Departmental
service.
Number
Number
Number
Number
Number
,. Field
'service.
granted annuities
not granted annuities
:
of applications pending before Pension Bureau.
of applications not received
died before making application
Total
Amount of annuities granted
:
14011
42
12
176
$91,335.87
207
$73,963. 42
ADMISSION TO PRACTICE BEFORE THE TREASURY DEPARTMENT.
Treasury Department Circular No. 230, governing the recognition
of attorneys and agents to practice beifore the department, originally
issued February 15, 1921, was revised and reissued April 25, 1922
(Exhibit 81, p. 298), with a number of important changes, the necessity for which had been demonstrated by experience.
Under the regulations as amended all applications for enrollment
must be individual, and all practice before the department must be as
individuals or as partnerships. Corporations cannot be enrolled, and
officers or employees of a corporation who are enrolled as individuals
are not permitted to act for the corporation in representing claimants
and others before the department. This is in accordance with the
general rule of legal practice, and is intended to give the department the benefit of the sense of personal responsibility which does not
attach to the corporate form of doing business. In addition to the
restrictions imposed by section 190, Revised Statutes, no former officer
or employee of the Treasury Department is permitted to appear in a
representative capacity before the departnient in any matter to
which he .gave actual personal consideration or as to the facts of
which he had actual personal knowledge while in the service of the
department. Advertising by enrolled attorneys or agents is required
SECRETARY OF T H E TREASURY.
95
to be limited to the name and address of the attorney or agent and
a brief description of his practice, with a mention of any special
field of practice, if. desired. . Advertisements .which describe the
capacity or ability of an attorney or-agent or which are so worded
as to imply official capacity or connection with the Government,
or advertising or solicitation which makes any suggestion of previous
connection with the department or acquaintance with its officials
or employees, or any reference to the fact of enrollment, are specifically forbidden. The solicitation of business by circulars, advertisements, or other means, including communications or interviews
not warranted by previous or personal relations with the person
addressed, is forbidden. While contiagent fees may be proper in
some cases before the department, they are not looked upon with
favor and may be made the ground of suspension or disbarment.
Both their reasonableness in vi^w of the service rendered and all the
attendant' circumstances are made a proper subject of inquiry by
the department. .
These amendments to the regulations were designed to establish
a standard of conduct for enrolled attorneys and agents equal to that
established by bar associations or by associations of public accountants. The revised regulations have met with the approval of those
attorneys and accountants who subscribe to the codes of ethics of
their professions, and the department has received their active support and assistance in detecting and bringing to account enrolled
attorneys or agents who have violated the regulations.
The committee on enrollment and disbarment of attorneys and
agents was enlarged and reorganized on January 1, 1922.^ The
reorganized committee has met twice each week, or oftener when
necessary, for the purpose of passing on applications for enrollment
and considering coniplaints against persons already enrolled.
°
During the fiscal year under review, 4,866 applications for em^ollment as attorne3^s and agents were approved and 81 applications
were rejected. Two erirolled attorneys were disbarred from practice
before the department and one enrolled agent was suspended for a
period of 90 days. Applications for enrollment are still being received at the rate of several hundred each month.
PANAMA CANAL.
The general fund of the Treasury was charged during the fiscal
year 1922 with $3,687,362.85 on account of the Panama Canal,
including $2,791,035.40 for maintenance and construction work and
$896,327.45 for fortifications and miscellaneous expenditures. The
general fund was credited during the year with $12,049,660.65 of
receipts from tolls, etc., making an excess of receipts for the year
96
REPORT ON T H E FINANCES.
of $8:,362,297.80. The total amouni e:?^pended for canal construction,
fortifications, maintenance, and operation, together with the amount
of interest paid on Panama Canal loans up to the close of the fiscal
year 1922, is shown in the following table:
Construction,
rnaiiitenance,
a n d operation.
Year.
1903
1904
1905
1906.
1907.
1908
.
1909
1910. . . '
1911,
,
1912
1913
.
1914
1915...
1916
1917
1918.
1919.......
1920.O...
1921
1922....
Fortifications.
S9,985.'00.
50)164,500.00
, 3,918,819.83.
19,379)373.71
27,198,618.71
:
38,093,929.04
31,419,442.41
33,911,673.37
36,604,569i02.
34,285,276.50
39,917,866.71 ,
31,452,359.61
,
24,427,107.29
:...
14,638,194.78
15,949,262,47
:
17,29.9) 762.56
10,704,409. 74'
6,031,463. 72
, 16,230,390.79
2,791-, 035.40 •
$465,034. 44
1,036,091.08
1,823,491.32
3,376,900. 85
4,767,605.38
2,868,341.97
3,313,532. 55
3,487,862.36
1,56i,:364;74
3,433,592.82
2,088,007.66
^896,327.45
• $9)985.00
50,164,500.00
3,918,819.83
19,379)373.71
.27,198,618.71
38,093,929.04
31,419,442.41
33,9U, 673. 37
37,069,603.46
35,321,367; 58
41,741,358.03
34,829,2.60.46
29,194,712.67
17,506,536. 75
19,262,795.02
20,787,624.92
• 12,'265i7.74.:48
9,465,056.54
18,318,398.45
3,687,362.85
29,118,152.62
483,546,193.28
. ..
. . . . . .
..:
Total
.
:
:
:
454,428,040.66
Interest paid
on P a n a m a
Canal loans.
Total.
'
$785,268.00
1,319,076.58
1,692,166.40
1,691,107.20
3,000,669.60
3,201,055.81
3,194,105.95
3,199,385.05
3,189,024. Td
3,103,250.67
2,976,476.56
2,.984,88&.3,33,040,872.80
2,994,776.66
2,995,398.14
39,367,522.62
."FINANCES.
Condition ofthe Treasury, June 80,1922.
General ^und: .
.
. ,
In Treasury offices^—
Gold...!
•
....1
$200,336,149,90
Standard silver dollars
7, 927,172. 00
0 United States n o t e s . .
4,145,964.00
Federal reserve notes
"
1,878, 289.00
National-banknotes
234,352.00
Subsidiary silver coin
17,747,501.85
Minorcoin
3,6.20,013.33
Silver bullion (at cost)
:..
44,284,867.40 '
Unclassified (unassorted cui-rency, e t c ) . .
3, 283,342. 53
Public debt paid, awaiting reimburse.
ment
503^020.03
^
—.—'•
'•— $283,960,672.04
I n Federal reserve banks
33,091,888. 68
Intransit
....
21,991,600.88
—
55,083,489. 56
I n special depositaries—
Account of sales of Treasury notes and
certificates of indebtedness
,
146,476,840. 69
I n national-bank depositaries—
To credit of Treasurer of the United States
7, 832j 260. 63
'
To credit of otlier Government officera...
16,169,825. 24
In t r a n s i t . . o . . . . . .
2,129,381.31
26,131, 467.18
SECRETARY OF THE TREASURV.
General fund—Continued.
I n treasury of Philippine Islands—
To credit of Treasurer of the United States
I n transit
I n foreign depositaries—
To credit of Treasurer of the United States
To credit of other Government officers...
I n transit!
$4, 417, 757. 43 .
554. 05
•
—•
97
$4,418,311.48
700, G19. 43
521,190.60
1,141. 00
1, 222, 951. 03
517, 293, 731. 98
Deduct current liabilities—
Federal reserve note 5
.
per cent f u n d . . . ! . . . . $179,138,539.55
Less notes .in process of
redemption
679,432.50
:
—
178,459,107.05
Federal reserve bank
•
.
note 5 per cent f u n d . .
7,445,646.55 •
Less notes in process of
'
.
redemption
1,030,273.00
:
6,415,373.55
National-bank note 5
per cent fund
29,791,025.87
Less notes in process of
redemption
15,540,014.63
14, 251, Oil. 24
Treasurer's checks outstanding.
447, 858. 57
,
Post Office Department balance.
12,427, 459.46.
Board of trustees. Postal Savings System
balance
,
, 7,103,734.69
Balance to credit of postmasters, clerks of
courts, disbursing officers, etc.
28, 902,135. 42
Undistributed assets of insolvent national
. banks
1,931,759.56
Retirement of additional circulating
notes, act of May 30, 1908.
31, 080. 00
Miscellaneous redemption accounts
3,197, 276. 59
. •
253,166,796.13
Balance in the Treasury June ,30, 1922, as per statement
of the public debt of the United States Government..
264,126,935.85
The following is a brief summary of the net change in the general
fund balances between June 30, 1921, and June 30, 1922:
General fund balances:
Balance per daily Treasury statement, June 30, 1921
$549, 678,105. 76
Deduct n e t excess of expenditures over receipts in June reports
subsequently received
...
16,779,775. 99
Net balance June 30, 1921
532,898,329. 77
Excess of ordinary receipts over expenditures chargeable against
ordinary receipts in the fiscal year 1922
321, 047, 216.40
Total to be accounted for
14263—FI 1922
7
853, 945, 546.17
98
REPORT ON THE FINANCES.
General fund balances—Continued.
Public debt retirements from surplus revenue
$321,047, 216. 40
(This is a d d i t i o n a l t o $422,352,950 sinking fund and other
debt retirements chargeable against ordinary receipts.)
Public d e b t retirements from decrease in net balance in the
general fund
•
268, 771, 393. 92
Balance in the Treasury June 30, 1922, as per statement of the
public debt of the United States Government
264,126, 935. 85
Total....
853, 945, 546.17
United States notes {greenbacks).—The redemptions of United States
notes unfit for circulation during the year amounted to $339,348,000.
An equal amount .was issued in order to maintain the outstanding
aggregate of the notes as required by law.
Gold reserve fund.—There were no redemptions of United States
notes for gold from the reserve fund during the year. This fund
remains at $152,979,025.63, or the same amount as at the close of
the previous fiscal year.
Trust funds.—The following table shows the trust funds held for
the redemption of the notes and certificates for which they are
respectively pledged:
Gold coin and bullion
Silver dollars
Silver dollars, 1890
$695,000,469 I Gold certificates outstand304, 066, 593
ing.
1,510,543 Less amount
in
the
Treasury
Net
I Silver certificates
tanding
amount
in
Treasury
Total
1,000, 577, 605
Total
290,162, 660
695,000,469
out305, 653,163
the
Net.,
Treasury.notes (1890) outstanding
Less ' amount
in
the
Treasury
Net.
$985,163,129
1, 586, 570
304,066, 593
1,510, 543
1, 510, 543
1,000.577.605
Gold fund. Federal Reserve Board.—The balance to the credit of
the gold fund. of. the Federal Reserve Board on June 30, 1922,
amounted to $2,108,886,911.43, an increase of $571,030,015.98 over
the amount to the credit of this fund on June 30, 1921.
The public deU.—The gross public debt of the United States at the
close of the fiscal year 1922 amounted to $22,964,079,190.58. This
is shown in detail in Exhibit 1, page 126, and Table A, page 458.
99
SEGRETARY OF THE TREASURY.
Receipts and expenditures, on cash basis.
The following statements summarize cash receipts and expenditures during the fiscal year 1922, and the estimated receipts and
expenditures for the fiscal years 1923 and 1924 on the basis of thelatest information received from the Bureau of the Budget and the:
various departments and establishments of the Government:
Summary of receipts and expenditures on the basis of daily Treasury statements.
Actual, fiscal
year 1922,
Net balance in the general fund at the beginning of fiscal
year.
Receipts:
Ordinary
Publicdebt!-.
Total.
Expenditures:
Ordinary
Public debt chargeable against ordinary receipts—
Other public debt i
Net balance in the general fund at close of fiscal year—
Total.
Estimated,
Estimated,
fiscal year 1923 fiscal year 1924*,
$549,678,106
$272,105, 513'
$272,105,5011
4,109,104,151
3,866,865,652
3,429,862,959
4,456,687,400'
3; 361,812,359
1,.475,.075,532.'
8,525,647,909
8,158,655, 872!
5,108,993,392
3,372,607,900
422,694,600
4,458,239,896
272,105,513
•' 3,373,712,871
33.0,088,800
4,182,748,700
272,105,501
2; .835, .746,234;
345,097,000'
1,656,044-eOOJ
272,105,558^
8,525,647,909
8,158,655,872
5,108,993j392i
484,853,540
545,666,532
528,494,271
559,996,841
585,605,59i
584,653,151-
60,812,992
31,502,570
POSTAL SERVICE,
Postal receipts
Postal expenditures.
Deficiency in postal receipts.
Surplus of postal"receipts
952,440-
1 Other public debt expenditures and public debt receipts, as shown in this statement, do not include
Treasury certificates issued and retired within the same fiscal year.
2 Includes $125,000,000 of accumulated interest on war-saving certificates, series of 1918, to be paid during
the fiscal year 1923, though properly allocable to the full five years of their life and not simply to the fiscal,
year 1923.
NOTE.—The postal deficiency for 1922, the estimated postal deficiency for 1923, and the estimated surplus
of postal receipts for 1924', shown above, are included in the general classification of ordinary expenditures^
and estimated ordinary expenditures under the Post Oflice Department on p. 119.
Cash receipts and expenditures are shown in more detail iu the following tables:
Receipts and expenditures for thefiscal years 1921 and 1922, and estimated receipts and expenditures for thefiscal years 192S and 1924-
O
O
[On the basis of daily Treasury statements.]
Fiscal year 1921.
Fiscal year 1922.
Fiscal year 1923.
Fiscal year 1924.
EECEIPTS.
Ordinary:
S308,564,391.00
Customs
Internal revenue—
Income and profits taxes. S3,206,046,157.74
Miscellaneous
internal
1,390,380,823.28
revenue
4,596,426,981.02
Miscellaneous r e v e n u e Sales of pubhc lands
1,530,439.42
Federal reserve bank
franchise tax
60,724,742.27
Interest on foreign obligations
31,142,982.51
Repayments of foreign
obhgations
83,678,223.38
Sale of surplus war supphes
183,692,848.69
Retirement of capital
stock of Grain Corporation
100,000,000.00
12,280,741.79
Panama Canal
246,891,610.83
Other miscellaneous
719,941,588.8
Total ordinary receipts.
$450,000,000.00
$356,443,387. IS
§2,068,128,192.68
1,145,125,064.11
3,213,253,256. 79
900,000,000.00
S425,000,000.00
,500,000,000.00
SI, 500,000,000.00
2,400,000,000.00
925,000,000.00
895,391.22
725,000.00
600,000.00
59,974,465.64
10,000,000.00
10,000,000.00
2,425,000,000.00
27^15,040.79
224,737,965.00
222,761,045.00
49,114,107. 46
31,250,000.00
31,225,000.00
89,321,255.06
83,510,000.00
27,812,000.00
25,000,000.00
11,747,092.47
275,640,154.33
13,924,000.00
215,715,994.00
14,224,000.00
205,190,314.00 .
539,407,506.97
579,862,959.00
5,624,932,960.91
4,109,104,150.94
3,429,862,959. <
15,115,927,689.30
13,372,607,899.84
s
>
a
511,812,359.00
3,361,812,359.00
EXPENDITURES.
Ordinary
Pubhc 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
261,100,250.00
276,046,000.00 <
2> 3 3^373,712,871.00
2 2,835,746,234.00
283,838,800.00
298,872,000.00
73,939,300.00
64,837,900.00
31,250,000.00
31,225,000.00
26,348,950.00
21,084,850.00
5,000,000.00
5,000,000.00
60,724,500.00
60,333,000.00
10,000,000.00
. 10,000,000.00
o
H
O
Forfeitures, gifts, etc.
Total ordinary exp.enditures (including debt redemptions
chargeable
against ordinary receipts).
Excess of ordinary receipts over
total expenditures chargeable
against ordinary receipts
Excess of total expenditures
chargeable against ordinary receipts over ordinary receipts...
422,113,000.00
392,850. 00
422,694,600.00
5,53S,040,-689.30
3,795,302,499. 84
86,892,271.61
313,801,651.10
330., OSS, SOO. 00
3,703,801,671.00
345,097,000.00
3,180,843,234.00
180,969,125.00
273,938,712.00
1 For details see Exhibits 71 and 72, pp. 267 and 270.
2 For details see pp. 119 and 120.
•
3 Includes S125,000,000 of accumulated interest on war-savings certificates, scries of 1918, to be paid during the fiscal year 1923, though properly allocable to the full five years of
iheir hfe and not simply to the fiscal year 1923.
,
.
W
o
H
O
d
Public debt expenditures and receipts in fiscal year 1922 and estimates for fiscat years 192S and 1924-
O
[On basis of daily Treasury statements.]
Fiscal year 1922.
'Fiscal vear 1923.
Fiscal year 1924.
EXPENDITURES.
Certificates of indebtedness:
Loan and tax
Pittman Act
Special
Victory notes
Treasury notes
War savings securities:
Series of 1918
•.
Series of 1919
•
.•
All other series
,
Liberty bond retirements
Retirements of Federal reserve bank notes and national-bank notes
Old debt items
Total public debt expenditures
Deduct debt expenditures chargeable against ordinary receipts:
Sinking fund
Purchase of Liberty bonds from foreign repayments
Redemption of bonds and notes from estate taxes
Retirements from Federal reserve bank franchise tax receipts..
Retirements from gifts, forfeitures, etc
$1,754,787,500
74,000,000
81,250,000,000
1,990,000,000'
115,000,000
311,191,600
153,791,600
107,251,870
58,122
2 510,000,000
5,000,000
15,000,000
75,000,000
89,000,000
50,000
3 5,500,000
49,400,000
20,000,000
335,000,000
15,000,000
50,000
4,880,934,496
4,512,837, .500
2,001,141,600
$2,450,843,500
141,875.000
32.854,450
1,908,139; 250
86,120,704
64,837,900
21,084,850
60,333,000
392,850
Total public-debt receipts
Excess ofpublic debt retirements over the retirements chargeable against ordinary
receipts
Excess of pubhc debt issues over redemptions chargeable against pubUc debt
receipts dne to indicated deficit in ordinary receipts
K
422,694,600
330,088,800
345,097,000
4,182,748,700
1,656,044,600
69,368,775
107,183,227
3,690,313,650
121,000,000
89,000,000
4,246,687,400
100,000,000
. 15,000,000
1,360,075,532
.^.3,866,865,652
4,456,687,400
1,475,075,532
180,969,068
591,374,244
273,938,700
4,458,239,896
4,182,748,700
1,656,044,600
1 Estimated amount of Victory notes that will not be presented for redemption until the fiscal year 1924.
2 Exclusive of $125,000,000 of accumulated interest on war savings certificates, series of 1918, to be paid during the fiscal year 1923, though properly allocable to the full 5 years
of their Ufe and not simply to the fiscal year 1923; this has been included as interest on the public debt under ordinary expenditures.
3 Estimated amount of war savings certificates, series of 1918, that will not be presented for redemption until the fiscal year 1924.
NOTE .—Other public debt expenditures and public debt receipts, as shown in this statement, do not include Treasury certificates issued and retired within the same fiscal year.
o
H •
4,458,239,896
RECEIPTS.
Treasury savings securities
Deposits to retire Federal reserve bank notes and national-bank notes
New issues of securities, including Treasury bonds, notes and certificates
S298,872,000
31,225,000
5,000,000
10,000,000
$283,838,800
31,250,000
5,000,000
10,000,000
$276,046,000
O
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O
in
Preliminary statement showing classified expey,ditures of the Government for the period from July 1, 1921, to June SO, 1922.
[For c o m p a r a t i v e figures a n d t o t a l e x p e n d i t u r e s for t h e fiscal year 1921 see E x h i b i t 71, p . 267.]
[ O n t h e basis of d a i l y T r e a s u r y s t a t e m e n t s . ]
J u l y , 1921.
A u g u s t , 1921.
S e p t e m b e r , 1921.
$1,511,592.44
21,669.69
883,043.77
43,970,001.93
59,211,762.32
1,399,221.44
8,352,387.68
56,522,307.28
27,577,664.15
9,892,270.95
2,077, aSl. 61
807,328.50
32,709,742.35
$1,584, 542.18
17, 194.15
475; 224.93
24,386, 133.63
48,335, 998.99
1,227, 207.37
256, 645.24
46,889', 184.62
29,089, 169. 20
14,470, 008.67
1,979, 401.33
315, 940. 90
26,218, 309.95
11,040, 032. 73
$1,326,052.32
18, 138.58
689, 864.33
12,297, 032.90
34,865, 066.83
1,302, 551.39
15,267, 044. 51
44,878, 756.55
29,222, 767.48
15,919, 109.35
2,248, 840.65
402, 612.77
35,135, 439.22
8,034, 356.20
17, 290,144.94
2 1, 013,689.77
56, 080,592.42
2 772,460.73
14, 885,125.39
2,630,641.91
43, 854,045.11
7,520, 602. 81
1,624, 415.44
17,740,165.93
Total
"...
D e d u c t unclassified r e p a y m e n t s , e t c .
322,583, 091.69
897, 565. 48
Total.....
P a n a m a Canal.
Ordinary:
Legislative e s t a b h s h m e n t
E x e c u t i v e proper."
^
,
State Department
Treasury Department
,
War Department
D e p a r t m e n t of J u s t i c e
1
,
P o s t Office D e p a r t m e n t
Navy Department
Interior Department.
D e p a r t m e n t of A g r i c u l t u r e
D e p a r t m e n t of C o m m e r c e
D e p a r t m e n t of L a b o r
Veterans' '^ureaui
.'
,
United States Shipping Board
/.
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 a n d t r a n s p o r t a t i o n
act, 1920.
W a r F i n a n c e Corporation
Grain Corporation
O t h e r i n d e p e n d e n t offices a n d commissions
D i s t r i c t of C o l u m b i a
Interest on p u b h c debt
Total ordinary.
October, 1921. N o v e m b e r , 1921. December, 1921, J a n u a r y , 1922.
$1,309, 919.32
17, 591.06
575, 747.43
10,088, 422. 59
33,570, 966. 04
1,603, 655.76
291, 083.60
38,357, 833.79
28,157, 151.11
15,922, 722.42
1,443, 872.49
525, 885. 86
37,033; 115.48
11,616; 152.07
$1,574, 229.43
17, 155.80
.681, 497.02
33,018, 535.50
36,611, 671.99
1,488,967. 86
10,175, 218.66
43,156, 907. 59
27,701, 577.18
15,321, 312.61
1, 824,789. 50
590, 518.69
37,291, 490. 88
7,788, 404.95
$1,640, 682.18
21, 555.59
1,056, 832.98
19,820, 916.96
31,899, 932.11
1,505,236. 00
240, 987. 74
40,938, 995. 27
29,430, 688. 38
12,657, 488. 21
1, 871,710.44
383, 016. 20
39,006, 755.44
8,957, 529. 93
$1,105, 270.72
19, 980.11
490, 781. 52
22,578, 602.45
34,303, 085.06
1,500, 007. 97
328, 608. 32
39,941, 085. 00
31,031, 478. 79
12,747, 894.13
1,579, 576. 76
. 555, 488.01
37,012, 263. 50
5,510, 503. 70
9, 244,880.02 2 44,665, 865.99
6,760,099. 81
2 31,188,088.11
3 25, 000, 000.00
1,69*. 995.17
260, 094.88
2,165, 667. 29
1, 396, 525.25
85, 729, 897.64 130, 203,694.69
2 8, 232,122.26
25, 807. 203.88
2 27, 812,538.90
19, 750,386.92
2,934, 233.26
2, 014, 845. 55
86, 541, 015. 25
1, 589,134.98
2.169, 538.60
144,170,489.21
2 42,950,185.15
39,345,917. 27
4,000, 000.00
3,629, 535. 40
1. 516,736. 01
37,087, 981. 07
288,478.309.76
* 2,208,312.90
267, 050, 942.76
1, 249, 770.36
301,668, 709.99
* 2,332, 851. 51
326,307, 453. 24
2,081, 608.87
329, 299,338. 24
4168,057.60
231,334,610. 64
356,222.29
321,685, 526.21
133,043.03
290,686, 622.66
471, 224.68
265, 801. 172.40
722, 760.39
304,001, 561. 50
156,394.35
324, 225, 844.37
257,532.35
329, 467,395.84
298,355.02
230,978, 388.35
268, 506. 81
321, 818,569.24
291,157, 847.34
266, 523, 932.79
304,157, 955. 85
324, 483, 376.72
329, 765,750. 86
231, 246, 895.16
O
>
o
K!
' P a y m e n t s on a c c o u n t of v e t e r a n s ' relief m a d e prior to A u g . 11, 1921, b y t h e W a r R i s k I n s u r a n c e B u r e a u are i n c l u d e d u n d e r T r e a s u r y D e p a r t m e n t , w h i l e s i m i l a r p a y m e n t s
m a d e prior t o t h a t d a t e b y t h e F e d e r a l B o a r d for Vocational E d u c a t i o n are i n c l u d e d u n d e r other i n d e p e n d e n t offices a n d commissions. D u r i n g t h e fiscal year 1922, a l l o t m e n t s for
v e t e r a n s ' relief h a v e been m a d e t o t h e T r e a s u r y D e p a r t m e n t i n t h e a m o u n t of $26,350,668.66, t o t h e W a r D e p a r t m e n t i n t h e a m o u n t of $4,866,383.40, a n d t o t h e N a v y D e p a r t m e n t
i n t h e a m o u n t of $529,237.84, b u t e x p e n d i t u r e s u n d e r these a l l o t m e n t s a p p e a r as e x p e n d i t u r e s of t h e respective d e p a r t m e n t s a n d n o t of t h e V e t e r a n s ' B u r e a u .
2 D e d u c t , excess of credits.
' $25,000,000 of t h i s a m o u n t represents r e d u c t i o n i n c a p i t a l stock of U n i t e d States G r a i n Corporation effected Oct. 17, 1921, a n d is reflected i n a n increase of receipts i n a n e q u a l
a m o u n t (see n o t e , p . 2, d a i l y T r e a s u r y s t a t e m e n t for Oct. 18, 1921),
• Add.
O
Preliminary statement showing classified expenditures ofthe Government for the period from July 1, 1921, to June SOy 1922—Continued.
J u l y , 1921
PubUc debt:
PubUc debt expenditures chargeable against ordinary
receipts—
S i n k i n g fund
$57,578,000.00
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 .
518,700.00
R e d e m p t i o n 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
2,298,350.00
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
° R e t i r e m e n t s from gifts, forfeitures, a n d o t h e r miscel•'
l a n e o u s receipts
3,600.00
A u g u s t , 1921
O
S e p t e m b e r , 1921. O c t o b e r ; 1921. November,1921. D e c e m b e r , 192i, J a n u a r y , 1 9 2 2
$23,397,000.00
$91,000.00
$57,289,100.00
1,897,050.00
1,793,000.00
2,021,800.00
836,888,900.00
13,800.00
2,483,250.00
4,500.00
4,900.00
650,00
3,350.00
$52,802,700.00
15,614,850.00
1,823,200.00
$29,503,100.00
432,400.00
1,950,550.00
2,619,000.00
4,435,030.00
5,000,00
2,550.00
T o t a l 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
ordinary receipts....,
•.
60,398,650.00
25,298,550.00
1,888,900.00
59,311,550.00
39,389,300.00
72,864,750.00
.36,323,600.00
Total expenditures (pubhc debt and ordinary)
c h a r g e a b l e against o r d i n a r y receipts
382,217,219.24
316,456,397.34
268,412,832.79
363,469,505. 85
363,872,676.72
402,630,500.86
267,570,495.16
169,886,077.44
212,220,683.22
1,171,953,843.53
487,082,650.47
49,330,859.06
728,210,930. 98
23,504,456.34
230,284,727.44
Other p u b h c debt expenditures
Total public debt (seeitems below)..
H
237,519,233. 22
1,173,842,743.53
546,394,200.47
88,720,159.06
801,075,683.98
59,828,056.34
Recapitulation, public debt:
156,517,000. 00
Certificates of i n d e b t e d n e s s r e d e e m e d
8,825,772. 44
T r e a s u r y ( W a r ) savings securities r e d e e m e d
2,420. 00
Old d e b t i t e m s retired
"
31,850. 00
F i r s t L i b e r t y b o n d s retired
692,350. 00
Second L i b e r t y b o n d s retired
1,001,300.00
T h i r d L i b e r t y b o n d s retired
1,030,950.00
F o u r t h L i b e r t y b o n d s retired
57,642,200. 00
V i c t o r y notes retired
4,540, ^Sb. 00
N a t i o n a l b a n k notes a n d F e d e r a l reserve b a n k notes r e t i r e d
169,111,000.00
9,077,647. 28
2,920.94
17,200.00
616,850. 00
376,800.00
808,100.00
50,117,600.00
7,391,115.00
1,051,903,950.00
8,643,853. 53
3,680. 00
10,050.00
615,800.00
396,350. 00
713,050. 00
97,065,650.00
14,490, 360.00
457,571,000.00
8, 874,220. 47
1.500.00
33; 450. 00
534,500.00
553,750. 00
819, 650. 00
63, 820,200. 00
14; 185,930.00
29,851,000. 00
8,045,299.06
5,380.-00
20,500. 00
1,354,300. 00
36,977,850. 00
11,429,180. 00
704,667,000. 00
8,307,610. 98
2,120.00
21,150.00
504,900.00
16,003, 500.00
820,700.00
60,019.050; 00
10,729; 650.00
7,012,500. 00
'7,475,905.58
800.76
42,500.00
629,200. 00
866,350.00
745,400.00
34,579,500.00
8,475,900.00
230,284,727. 44
237,519,233.22
1,173,842,743. 53
546,394,200. 47
88,720,159. (
801,075, 680. 98
59,828,056. 34
Total public debt
^
-
O
386,200. do
650,4.50. 00
O
>
a
zn
F e b r u a r y , 1922.
Ordinary:
I-.egislative e s t a b l i s h m e n t
:
,
Executive proper
State Department
Treasury Department
,
War Department
D e p a r t m e n t of J u s t i c e
,
P o s t Office D e p a r t m e n t
Navy Department
Interior Department
D e p a r t m e n t of A g r i c u l t u r e
D e p a r t m e n t of C o m m e r c e
D e p a r t m e n t of L a b o r
".....•.
Veterans' Bureau i
United States Shipping Board
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 a h d t r a n s p o r t a t i o n act, 1920.
W a r F i n a n c e Corporation
G r a i n Corporation
Sugar E q u a h z a t i o n B o a r d
O t h e r i n d e p e n d e n t offices a n d commissions
D i s t r i c t of C o l u m b i a
I n t e r e s t on p u b h c d e b t
March, 1922.
. A p r i l , 1922.
May, 1922.
J u n e , 1922.
T o t a l J u l y 1,1921,
t o J u n e 30, 1922.
1,710, 169, 86
1,921, 4 n , 2 6
22,847, 959, 73
2; 013, 882, 46
2,126,531. 68
99,700, 420. 41
2 14, 369,856. 84
4,522,351.72
1, 803,334. 75
121,822,074.35
2 709,779. 68
1,583.256.19
1,942,377. 26
86,584, 434. 59
2 200,000.00
1, .532,274. 28
2, 650,496.25
114,718,581. 26
$17,088, 112.87
218, 690.36
9,666, 571. 70
294,414, 389.72
454,730, 717.67
17, 888, 828. 58
67,730, 361. 83
476,775, 193. 84
341,097, 166.11
142,695, 844.10
21,688, 014. 86
6,227, 471.57
400,691, 609.68
87,205, 732.12
2;5 139,469, 450. 82
94,428, 001. 01
332,000, 000.00
2 15,279, 636.52
43,871, 656.40
23,962, 521. 25
991,000, 759, 24
Total
D e d u c t unclassified r e p a y m e n t s , e t c .
182,057,987.53
4 6,988.45
327,874,306.16
2,079,756. 46
240,203,644.78
4 2,190,821. 65
237,129,697.12
4 816,056. 36
314, 644, 463. 66
826,076. 42
3,368, 632,555. 57
4 232,088.59
teJ
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 .
182,064,975.98
140,955.87
325, 794, 549. 70
160,387.08
242,394,466.43
166,495.39
237, 945.753. 48
15; 723.40
313,818,387. 24
234,042.95
717, 834.36
3,368,864,644.16
3,025, 421.32
717,834. 36
to
fei
Total ordinary.
$1,328, 612. 72
15, 010.13
871, 695. 51
12,898, 146. 87
30,125, 848.01
1,461 411.18
10,387; 934.25
32,288, 614.07
26,593, 016. 01
8,859,688.21
2,573, 788. 96
.532, 645.12
39,865, 647. 38
4,458, 041. 09
'50,088, 964.20
30, 407,311.37
3,000, 000.00
182,205,931. 85
$1,429, 309. 55 $1,464, 276.04
$1,498, 513.13
381. 54
19, 863.72
16, 456. 23
• 17,
834, 454.40
1,270', 229.92
407, 581.36
46,616; 328. 83 20,940, 889.07
18,661,045.72
35,24i; 287. 96 37,412, 073.30
42,398, 305.03
1,670, 713. 87
1, 548,893, 05
1,784, 328.40
359, 335,44
269, 193.01
8,331, 513.48
23,481, 074. 86 32,426, 773.51
31,689, 920.15
23,476, 503. 28 27,139, 605. 52
30,708, 353.35
8,447, 467. 35
9, 545, 941,38
11,027, 071. 35
1, 723,124. 21*
1, 758, 861.59
705, 027.62
336, 625. 72
493, 986.65
569, 577.69
387.
92
447.19
36,629, 151.41
33,670,
39,707,
3,049, 877.15 2 6,652,197.07 2 1, 878, 074.19
9,077. 599.99 2 43, 537,901. 60 2 18,970, 664. 91
987. 73 2 1,068, 462. 62 2 1,970, 417.11
24,399;
$1,315, 112. 84
16, 693. 76
1,429, 618.53
29,138, 333.27
30,754, 720.03
1,396; 634.29
13,460; 410.00
46, 203', 741.15
30,969: 191.66
7, 884: 869.47
1,901 189. 70
713' 845.46
39,121 601,31
2,571 363, 21
5,095 574. 82
2 16, 029:; 787, 63
325,954,936. 78
242, 560,961. 82
237,961,476.;
314,770,264. .55
3,372,607, 899. 84
O'
fej
> •
Kj
o
hrj
H
>
in
d
Kj
1 P a y m e n t s on a c c o u n t of v e t e r a n s ' relief m a d e prior t o A u g . 11, 1921, b y t h e W a r R i s k I n s u r a n c e B u r e a u a r e i n c l u d e d u n d e r T r e a s u r y D e p a r t m e n t , while similar p a y m e n t s
m a d e prior t o t h a t d a t e b y t h e F e d e r a l B o a r d for Vocational E d u c a t i o n a r e m c l u d e d u n d e r other i n d e p e n d e n t offices a n d commissions. D u r i n g t h e fiscal y e a r 1922 a U o t m e n t s for
v e t e r a n s ' relief h a v e b e e n m a d e t o t h e T r e a s u r y D e p a r t n i e n t in t h e a m o u n t of $26,350,668.66, t o t h e W a r D e p a r t m e n t i n t h e a m o u n t of $4,866,383.40, a n d t o t h e N a v y D e p a r t n i e n t
in t h e a m o u n t of $529,237.84, b u t e x p e n d i t u r e s u n d e r t h e s e a U o t m e n t s a p p e a r as e x p e n d i t u r e s of t h e r e s p e c t i v e d e p a r t m e n t s a c d n o t of t h e V e t e r a n s ' B u r e a u .
2 D e d u c t , excess of credits.
3 $25,000,000 of t h i s a m o i m t r e p r e s e n t s r e d u c t i o n i n capital stock of U n i t e d S t a t e s Grain Corporation efl'ected Oct. 17,1921, a n d is reflected in a n increase of receipts in a n e q u a l
a m o u n t (see n o t e , p . 2, daUy T r e a s u r y s t a t e m e n t for Oct. 18, 1921).
4 Add.
5 T h e railroad e x p e n d i t u r e s h a v e be^n r e d u c e d b y $266,636,606.26 u p t o J u n e 30, 1922, on accoimt of deposits b y t h e R a i l r o a d A d m i n i s t r a t i o n , r e p r e s e n t i n g proceeds ofsale of
e q u i p m e n t t r u s t n o t e s a c q u i r e d u n d e r t h e F e d e r a l control a c t a p p r o v e d Max. 21, 1918, as a m e n d e d , a n d t h e act a p p r o v e d N o v . 19, 1919, a n d h a v e b e e n further r e d u c e d b y
$123,783,487.75 u p t o Jiine 30, 1922, on a c c o u n t of deposits of t h e proceeds of sale or coUection of other securities a c q u i r e d u n d e r t h e F e d e r a l control a c t or t r a n s p o r t a t i o n act, 1920.
o
Or
Preliminary statement showing classified expenditures of the Government for the period from July 1, 1921, to June SO, 1922—Continued.
O
05
February, 1922.
PubUc debt:
PubUc debt expenditures chargeable against ordinary receiptsSinking fund
Purchases of Liberty bonds from foreign paynients
Redemption of bonds and notes from estate taxes
Retirements from Federal reserve bank franchise tax receipts
Retirements from gifts, forfeitures, and other miscellaneous receipts.
March, 1922.
April, 1922.
May, 1922.
June, 1922.
Total July 1,1921,
to JuneSO, 1922.
2,157,350.00
2,057,000.00
60,500.00
$1,799,300. 00
24,249,000.00
14,100.00
$10,000,000.00
748,050.00
24,613,000.00
25,800.00
$19,680,000.00
1,559,450.00
2,349,300.00
13,600.00
$17, 586,000.00
18,578,150.00
553,500.00
10,700.00
254,300.00
$276,046,000.00
64,837,900.00
21,084,850.00
60, 333,000.00
392,850.00
Total pubUc debt expenditures chargeable against ordinary
receipts
5,185,050.00
26,062,400.00
35, 386,850.00
23,602,350.00
36,982,650.00
422,694,600.00
Total expenditures (public debt and ordinary) chargeable against
ordinary receipts
187,390,981.85
352,017,336.78
277,947,811.82
261,563,826.88
351, 752,914. 55
3,795, 302,499.84
516,906,539.57
1,676,029,251.31
95,886,177.33
47,976,222.93
1,429,544,204.75
6,608,531,896.93
522,091,589.57
1,702,091,651.31
131, 273,027.33
71,578,572.93
1,466,526,854. 75
7,031,226,496.93
264,193,500.00
6,256,759.10
7,830.47
96,400.00
407,350.00
476,800.00
1,066,000.00
243^923,450.00
5,663,500.00
1,011,477,000.00
5,960,511.31
6,940.00
59,100.00
450,000.00
24,495,000.00
692,150.00
648,498,150.00
10,452,800.00
61,313,000.00
5,252,527.33
11,300.00
28,950.00
223,100.00
34,831,900.00
297,400.00
23,082,700.00
6,232,150.00
9,978,000.00
4,972,452.93
4,370.00
13,500.00
537,700.00
22,223,450.00
788,650.00
26,701,250.00
6,359,200.00
852,270,000.00
4,428,144.52
8,860.23
38,950.00
417,200.00
35,912,750.00
438,100.00
565,711,650.00
7,301,200.00
4,775,864,950.00
86,120,704.53
58,122.40
413,600.00
6,015,150.00
137,788,400.00
9,574,450.00
1,908,139,250.00
107,251,870.00
522,091,589.57
1,702,091,651.31
131,273,027.33
71,578,572.93
1,466,526,854.75
7,031,226,496.93
Other pubUc debt expenditures
Total pubUc debt (see items below).
Recapitulation, pubUc debt:
Certificates of indebtedness redeemed
Treasury (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 pubhc debt
$910,200.00
O
NOTE.—Because of legislation estabhshing revolving funds and providing for the reimbursement of appropriations, commented upon in the armual report of the Secretary of the
Treasury for the fiscal year 1919, p. 126 ff., 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.
n
o
s
a
a
CO
SECRETARY OF T H E TREASURY.
107
Receipts and expenditures, on warrant basis.
The following comparison of receipts and expenditures is on the
basis of warrants issued (net) and includes unexpended balances
to the credit of disbursing officers at the end of the year, but not
<expenditures under such unexpended balances at the beginnihg of
t h e year:
Comparison of receipts, fiscal years 1922 and 1921, on the basis of warrants issued (net).
1921
Increase, 1922.
Decrease, 1922.
'Customs
$308,025,102.17
$49,519,610.23
$357,544,712. 40
Internal revenue:
$1,141,219,208.90
2,086,918,464.85
Income and profits taxes
3,228,137,673*75
230,596,091. 86
Miscellaneous
1,121,239,843.45 1,351,835,935.31
635,048. 20
895,391. 22
;Sales of public lands
1,530,439.42
38, 276. 80
Alaska fund
136,053.10
174,329.90
Assessments on Federal re1,752,170.36
4,819,339.72
serve banks for salaries, etc.
3,067,169.36
.Assessments on national
banks for expenses of
examiners
429,562. 89
1, 583,
2,012,600.00
6,707,058. 72
'Consular i ees
'.
1,030,208.11
5,676,
Oustoms fees, fines, penal140,696.29
ties, services of officers, etc.
1,032, 589.34
1,173,
66,472. 27
'Commerce coUections
239,432. 57
305,
Donation of royalty on ma520,266.^12
chine guns. •.
520,
8,496.35
.Depredations on public lands.
- 60,149.90
:Deposits for surveying public lands
68,461. 03
62,324.51
6,136. 52
District of Columbia general
receipts
14,439, 985. (
14,777,218.19
337,232.26
District of Columbia sources.
457,798. 25
561, 106.;
103,308.04
"Discount on bonds, notes, and
7,239,048.64
certificates purchased
10,675,194.
3,436,145.91
296,636.17
666,371.
369,735.67
.Earnings on radio service
Federal land banks, liquidation of capital stock
954, 835.
1,057,830.00
102,995.00'
Food Administration
37,078,
37,078,988.55
'.Forest Service, cooperative
fund
1,946,
1,394,826.71
551,214.47
2,696,
Fees on letters patent
178,510.69
2,875,013.15
2,534,370.27
• 2,591,
Forest reserve fund
,
5,125,668.20
"Franchise tax (surplus earnings of Federal reserve
banks)-...'^
:
750,276.63
60,724,742. 27
59,974,465.64
Funds contributed for river
and harbor improvements.,
3,774,947.68
2,930,05L68
844,896.00
19,008.08
7, 245,624.49
'Gain by exchange
7, 226, 616.41
'Grain Corporation, decrease
of capital stock
100, 000,000.00
25, 000, 000.00
75,000,000.00
lEousing Corporation, operations and disposal of properties
,
4, 240, 055.17
4, 523,207. 53
283,152.36
..Farm loan bonds:
44,400,000.00
44,400,000.00
Principal
,
305,095.08
8, 611,170.08
• Interest
,
8,306, 075.00
Foreign loans:
34, 564,115.92
49,114,107.46
83,
678,
223.
38
Principal
11,719,583.37
6,607, 723. 54
18, 327,306.91
Interest
,
:!nterest on foreign obhgations, sale of surplus prop8,405,808.32
21,107, 317. 25
erty, War Department
12,701, 508.93
5, 668, 852.42
1, 719,425.65
7, 388, 278.07
-Interest on public deposits..
"Interest on loans to railroad
81, 000. 00
2 84, 000.00
companies
1 3,000.00
•Interest on advance pay653,082.76
ments to contractors
667, 383.05
14,300.29
1, 250,070. 50
2, 517.. 823.19
5,767, 893,69
Immigrant fund
. -Judicial fees, fines, penal4, 382,676. 51
ties, etc
5,132,937.71
750, 261.20
1,753,759.83
1,139, 880. 25
Land fees
613, 879. 58
1 Exclusive of $12,906,960.89 interest received on account of loans to railroads under section 210 of the
rtransportation act of 1920, and $27,324,181.14 interest collected under the provisions of the Federal control
act of Mar. 21, 1918, which amounts were credited, respectively, to the revolving funds, "Loans to railToads" and " Federal control of transportation systems.^'
2 Exclusive of $4,369,607.49 interest received on account of loans to railroads under sec. 210 of the transportation act of 1920, and $26,415,163.88 interest collected under the provisions of the Federal control act
-of Mar. 21,1918, which amounts were credited, respectively, to the revolving funds, "Loans to railroads''
r-and " Federal control of transportation systems.'*
108
REPORT ON THE FINANCES.
Comparison of receipts, fiscal years 1922 and 1921, on the basis of warrants issued
° (net)—Continued.
1921
1922
Naval '^ petroleum reserve
lands, oil leasing act
Navy hospital and clothing
funds, fines, forfeitures, etc.
Naturalization fees
Oil-leasing act receipts:
Future productions
Past productions
Oregoii and California landgrant fund
Passport fees
Profits on coinage, bullion
deposits, etc
Payment by German Government under terms of
armistice
Proceeds of town sites, etc...
Proceeds of seal and fox skins.
Panama Canal tolls, etc
Rent of public buildings
(war)
Revenues of national parks...
Return of advances to reclamation fund
Rent of public buildings,
grounds, etc
Reimbm-semcnt on account
of expenditures made for
Indian tribes
Sale of war supplies. War
Department
Sale of explosive plant, Nitro,
W.Va
Sales "of ordnance materials,
etc. (war)
Sales of war supplies. Navy
Department
"
Sales of naval vessels
Surplus postal -revenues,
prior years
Sales of Government property
Sales of lands and buildings..
Sales tb Indians
Tax on circulation of national
banks
Work done by War Department..'.
MisceUaneous
$2,016,104.81
Increase, 1922.
$1,101,495.19
$3,117, 600.00
12, 547, 632. 58
657,190. 00
2, 474, 577. 79
912,601.16
$10, 073, 054.79
5, 505, 418. 35
765, 707. 42
. 1,414,567.69
5,193, 548. 55
4, 090, 850.66
252,426.74
1,265,202.03
363,802.04
1,172,705. 64
92,496.39
21,660,921. 07
12,610, 210.05
9,050,711.02
4,403,655.52
18,645.08
292,998.87
12,049,660.65
11,154,467.22
32,343.93
1,024,886.81
11,914,361.32
548,454.59
"377,809. 72
935,301.39
384,276. IS
1,000,000.00
, 1,000,000.00
682,684.94
1,083,000.85
.
Decrease, 1922.
255, 411.16
4, 427, 841. la
111,375.30
6,750,811. 7013,698. 85
731,887.94
135,299.33
386, S46. Sa
6,466.46-
"" 400,315.91
3,127.?3
33,729.48
30,601. 75
78,268,106.20
181,598,778. 78
103,330,672. bS
700,000.00
700,000.00
33,959.72
169,049.92
135,090. 20
11,048,530. 93
1,804,337.37
74,953.04
81,494.18
22,838,951.33
102,186.49
126,454.74
356,550.78
246,260.00
383,246. 87
4,537,773.70
4,799,615.73
898,554. 29
10,796,991.32
344,784. 23
6,671,097.43
16,045. 73
335,211. 57
9,244,193.56
81,494.18
22,482,400.55
74,953.04
144,073.51
256,792.13
261,842.03
553,770.06
4,125,893.89
TRUST FUNDS.
Department of State:
MisceUaneous trust funds.
Treasury Department:
MisceUaneous trust fimds,
War Department:
Army deposit funds
Soldiers' Home perma-.
nent fimd
Preservation of birthplace of A.braham Lincoln
MisceUaneous trust funds.
Navy Department:
Navy deposit fimd
Marine Corps deposit
fund
Navy pension fund
,
Interior Department:
Proceeds of Indian lands.
Indian moneys, proceeds
of labor
MisceUaneous trust funds
Personal funds of patients, St. Ehzabeths
Hospital
Pension money, St. Ehzabeths Hospital
Veterans' Bureau:
Premium on converted
war-risk insurance
2,433. 81
372. .00
158,248. 70
2,446,908.78
.821,009 01
2,040.00
35.00
2,040. 00
157,876.70
1,625,899.77
35.00
150,231.99
249,218. 39
1,005,127. 56
7,188.13
.319,165.84
2,433.81
102,689.37
2,863.53
902,438.19
4,324.60
560,788.43
758,728.39
1,319,516.82
22,294,874.18
1,185,826. 22
20,443,157. 66
909, .301. 27
207,352.80
210,934. 26
3,581.46
73,918.24
74,075.27
157. oa
26,007,398.63
22,051,782.65
1,851,716.52
276,524.95
3,955,615.93
109
SECEETARY OF THE TEEASUKY.
Comparison of receipts, fiscal years 1922 and 1921, on the basis of warrants issued
(net)—Continued.
1922
1921
$921,862.90
$826,234.80
189,381.89
148,826. 20
40,555.69
192,891. 47
70,847. 83
161,168.67
26,253.68
31,722. 80
44,594.15
Increase, 1922.
Decrease, 1922.
TRUST FUNDS—continued.
District of Columbia:
MisceUaneous t r u s t fund
deposits
Washington redemption
fund
PoUce a n d firemen's reUef
fund
O t h e r t r u s t funds
Teachers' r e t i r e m e n t
fund d e d u c t i o n s
Total
Deduct m o n e y s covered b y
w a r r a n t in year subsequent
to t h e deposit thereof
•
202,782.64
192,847.75
9,934.89
4,103,741,926.79
5,585,475,693.85
186,150,805. 86
$1,667,884,572. 92
186,150, 805. 86
1,666,925,924.30
186,150,805.86
1,667,071,320.05
146,592. 21
1,105,240. S3
4,103,595,334.58
5,584,370,453.02
A d d m o n e y s received i n fiscal
year b u t n o t covered b y
warrant
T o t a l o r d i n a r y receipts.
Public debt:
F o u r t h Liberty loan
Victory Liberty loan
Treasury notes
Certificates of i n d e b t e d ness
T r e a s u r y ( w a r ) savings
securities
Postal-savings b o n d s
B a & - n o t e fund
T o t a l p u b l i c d e b t receipts
T o t a l receipts,
sive of p o s t a l
Postal revenues..
$95,628. .10
1,196.46
146,592.21
4,103,596,53L 04
5,584,517,045.23-
958,648.62
145,395.75
11,300.00
1,935,404,750.00
12,213.00
112,730.00
311,191,600.00
2,213.00
3,905,090,000.00
8,486,964,950.00
70,325,625.10
112,200.00
107,086,627.50
26,418,352.19
178,880.00
40,186,945.00
43,907,272.91
6,018,017,902.60
8,864,925,784.19
1,735,022,318.41
4,581,930,200.00
10,121,614,433.64
484,853,540.71
14,449,442,829.42
463,491,274.70
1,921,173,124.27
21,362,266.01
6,249,001,520.05
10,606,467,974.35
14,912,934,104.12
1,942,535,390.28
6,249,001,520.05
•
111,430.00
1,624,213,150.00
4,581,874,950.00
66,680.00
66,899,682.50
•
exclu-
T o t a l receipts, i n c l u d ing postal
1 Counter entries.
Comparison of expenditures, fiscal years 1922 and 1921, on the basis of warrants issued
{net).
1921
1922
Increase, 1922.
Decrease, 1922.
LEGISLATIVE ESTABLISHMENT.
United States Senate .
H o u s e of R e p r e s e n t a t i v e s
Legislative, misceUaneous
Botanic Garden
L i b r a r y of Congress
Public Printer
T o t a l , legislative estabUshment. .
$2,365,567.19
6,047,115. 58
424,314.41
84,899.76
.
822,600.70
6,981,425.05
$2:470,110.61
6,618,808.00
• 106,307. 27
82,933.65
886,625.78
8,316,080.91
$318,007.14
1,966.11
16,725,922,69
18,480,866.22
319,973.25
216,534.74
210,891.25
14,877.22
363,965.02
14,093.06
462,235.74
.68
24,141.72
$104,543.42
571,692.42
64,025.08
.1,334,655.86
2,074,916.78
E X E C U T I V E OFFICE.
Salaries a n d expenses. E x e c u t i v e office
'
5,643.49
I N D E P E N D E N T B U R E A U S AND
OFFICES.
Alaska rehef funds .
A h e n . P r o p e r t y Custodian
Anthracite and Bituminous
Coal Commission
784.16
98,270.72
24,141. 04
110
REPORT ON THE FINANCES.
Comparison of expenditures, fiscal years 1922 and 1921, on the basis of warrants issued
(net)—Continued.
1922
Increase, 1922,
Decrease, 1922,
INDEPENDENT BUREAUS AND
OFFICES—continued.
A r h n g t o n Memorial A m p h i t h e a t e r Cominission
B o a r d of Mediation a n d Concihation
,
B u r e a u of Efficiency
Capital Issues C o m m i t t e e
Civil Service Commission
Commission of F i n e A r t s —
C o m m i t t e e on P u b U c I n formation
Council of N a t i o n a l Defense.
Employees'
Compensation
Commission
E u r o p e a n food reUef
F e d e r a l B o a r d for Vocational E d u c a t i o n
Federal P o w e r C o m m i s s i o n . .
F e d e r a l Reserve B o a r d
Federal T r a d e Cominission..
. General A c c o u n t i n g Office...
H o u s i n g Corporation
Interdepartmental
Social
Hygiene Board
I n t e r s t a t e Commerce Commission
MisceUaneous i t e m s
National
Advisory
Comm i t t e e for Aeronautics
N a t i o n a l security a n d defense. E x e c u t i v e
Railroads
Railroad Labor Board
,
R o c k Creek a n d P o t o m a c
P a r k w a y Commission
,
Smithsonian Institution a n d
National Museum
,
s t a t e . W a r , a n d N a v y Dep a r t m e n t Buildings
T e m p o r a r y g o v e r n m e n t for
West Indian Islands
U . S . Food and Fuel Administrations
U . S. P i l g r i m T e r c e n t e n a r y
Commission
:
U . S. S h i p p i n g B o a r d
U . S. Tariff Commission
U . S . Veterans' Bm'eau: &
Salaries a n d expenses
Medical a n d
hospital
services
M i h t a r y a n d n a v a l compensation
Mihtarj'^ a n d n a v a l family
aUowance
MsceUaneous i t e m s
Special funds—
MiUtary a n d n a v a l
insurance
Miscellaneous special
funds
G o v e r n m e n t Ufe insm'ance fund ( t r u s t fund)—
Investments
Expenses
Vocational r e h a b i h t a t i o n e
J n c r e a s e of c o m p e n s a t i o n
War Industries Board
War Trade Board
.*
Total, independent bureaus a n d offices
$50.00
1 $5,083.85
6,657.29
139,667.78
665,978.64
10,544.95
20,945.
144,528.
23
659,088*.
10,602.
118,214.37
1,248.69
64,523.
66,636.
2,689,005.88
107,746.17
2,529,334.
1,658,829.
2 18,567,989.79
36,992,53
4,456,034.44
953, .^37.94
2,537,374.25
1,387,240.06
5104,672,029.
21,526.
4,493,633.
1,010,327.
412,468.16
5,391,271.55
743,049. 03
175,034. 55
2,905.24
1125,232,444,02
402, o n , 91
220,408.10
835,497.54
1,639,607.86
343,440. 00
610.96
157,354.30
86,145,816.32
318,612.55
5,666,158.24
38,007,874.77
117,891,438.53
882,190.36
1 3.92
75,645,628.49
529,196.00
(')
1,322,237. 63
15,133.85
14,288.68
4,860.35
23.78
$6,890. 50
82,737. 89
65,387.36
159,671.59
1,551,083. 57
86,104,039.64
15,465. 54
37,598.90
56,789.43
2,537,374. 25
65,002,43
932,609.70
6,097,061.
9,149.
520,141. 54
705,789. 75
733,899. 21
184,600. 52
9,565.97
14,303.
739,019,362.
385,094.
17,517.13
140,619.
79,788. 54
11,398.66
864,251,806.66
896,508.
61,010.73
2,204,713.
565,105.69
343,440.
1 249,375.
249,986.91
242,645.
92, 886,783.
311,629.
6,983.00
85,291.40
6,740,967.56
(5)
5,666,158.24
(')
(')
(')
(')
38,007,874.77
117,891,438.53
882,190.36
3.92
(')
(')
75,645,628.49
(')
(')
(')
24,101,176. 87
1,344,199.60
164,510,136.09
2,134,908.70
22,563,224. 84
2,882,151.63
164,510,136.09
2,134,908.70
139.34
146.48
1,963.75
11,121,701.03
434,184,996.71
959,474,197.30
( ' ) •
529,196.00
1,824.41
11,121,8-47.51
434,586,270.91
959,875,47L50
1 Excess of r e p a y m e n t s , d e d u c t .
2 I n c l u d e s $14,299,213.62 e x p e n d i t u r e s u n d e r " V o c a t i o n a l r e h a b i h t a t i o n , " n o w u n d e r Veterans' B u r e a u .
3 I n c l u d e s $101,049,138.97 e x p e n d i t u r e s u n d e r " V o c a t i o n a l r e h a b i h t a t i o n , " n o w u n d e r Veterans' B u r e a u .
< F o r e x p e n d i t u r e s of accounting offices prior t o creation of t h e General A c c o u n t i n g Office ( J u l y 1,1921)
see a c c o u n t i n g offices u n d e r T r e a s u r y D e p a r t m e n t , p . 115.
6 F o r e x p e n d i t u r e s p r i o r t o creation of V e t e r a n s ' B u r e a u ( A u g . 9,1921) see B u r e a u of W a r R i s k I n s u r a n c e
u n d e r T r e a s u r y D e p a r t m e n t , p . 115.
°
6 F o r e x p e n d i t u r e s p r i o r t o A u g . 9,1921, see F e d e r a l B o a r d for Vocational E d u c a t i o n , a b o v e .
Ill
SECEETAEY OF THE TEEASURY.
Comparison of expenditures, fiscal years 1922 and 1921, on the basis of warrants issued
(net)—Continued.
1922
1921
Increase, 1922.
Decrease, 1922.
DISTRICT OF COLUMBIA.
Salaries a n d expenses
Special funds:
Water department
Washington aqueduct..
MisceUaneous special funds
T r u s t funds:
MisceUaneous trust-fund
deposits
Washington redemption
fund
Pohcemen and
firemen's
relief fund
T e a c h e r s' r e t i r e m e n t
fundInvestments
Current e x p e n s e s . . . : .
O t h e r t r u s t funds
$21,478,256.98
$20, 877,085. 79
$601,171.19
700,993. 40
200,253.91
56,511.11
846,832. 35
186,260. OS
8,873. 67
13,993. 83
47,637. 44
842.825.03
79^,484.91
44,340.12
183.187.04
156,733. 29
26,453. 75
199,158. 86
169,581.69
29,577.17
249,500. 00
7,275.00
71,224.27
160,000. 00
26,393. 92
12,013. 84
'59,"2i6.'43'
23,242,259. 54
911, 883. 93
6,242,868.99
912,758.90
1,953,124.68
96,447. 74
T o t a l . D i s t r i c t of Columbia
23,989,185.6
$145,838.95
89, 500.00
19,118.92
164,957. 87
D E P A R T M E N T OF AGRICULTURE,
Salaries
MisceUaneous
F a r m e r s ' seed-grain loans
Stimulating agriculture and
d i s t r i b u t i o n of p r o d u c t s . . . .
Officeof F a r m M a n g a g e m e n t ,
expenses
B u r e a u of A n i m a l I n d u s t r y ,
expenses
B u r e a u of P l a n t I n d u s t r y ,
expenses
•.
F o r e s t Service, e x p e n s e s
B u r e a u of C h e m i s t r y , expenses....
.":
B u r e a u of Soils, e x p e n s e s
B u r e a u of E n t o m o l o g y , expenses
B u r e a u of Biological Survey,
expenses
Division of P u b l i c a t i o n s , expenses
s t a t e s Relations Service, expenses
B u r e a u of P u b l i c R o a d s , expenses
B u r e a u of Markets a n d Crop
E s t i m a t e s , expenses
Federal Horticultural Boai'd.
Procuring n i t r a t e of s o d a . . . . .
Weather Bureau, expenses...
L a n d s for protection of watersheds a n d s t r e a m s
R o a d construction
Increase of compensation
Enforcement of insecticide
act, general expensas
Cooperative agricultural extension w o r k
Meat inspection, B u r e a u of
Animal Industry
Special funds:
Cooperative w o r k , Forest
Service
P a y m e n t s t o States a n d
Territories from national forest funds
Other special funds
T o t a l , D e p a r t m e n t of
Agriculture
6,339,316. 73
881,212.47
859,358. 52
31,546.43
1,093,766.16
578.08
6, 872. 35
295,937.29
294,410. 85
1, 526.44
6,294.27
5,087,261.28
4,182,966. 93
904,294. 35
2,519,* 598. 79
4,615,979. &3
2,477,744. 79
.4,892,006.77
41,854.-00
920,948.42
298,465. 38
913,637.92
440,257. 79
7,310. 50
1,652,137.49
1,202,400. 88
449,736.61
750,583. 97
741,053.22
9,530. 75
126,725. 53
122,760.48
3,965.05
3,104,651. 73
3,112,941.70
433,098. 24
404,089. 25
29,008.99
2,251,356, 20
728,501.03
24,070.10
1,565, 831. 53
2,063,839.10
649,420.72
9,155,873.62
1,532,492.10
187,517.10
79,080.31
830,785, 27
95,084,057.74
3,236,838.34
1,179,472.82
62,498. 203.00
3,012,856.60
276,026.94
'i4i'792.'4i
8,289.97
9,131,803.52
33,339.43
348,687.55
32,585,854.74
223,981.74,
105,095. 40
108,047.63
5,474,049. 50
5,031,577.73
442,471.77
3,713,692.37
3,653,315.06
60,377.31
1,525,993.61
2,197,977.24
1,023,083. 81
535,254.04
1,180,083.13
436,662. 83
18,591.21
143,984,462,69
120,599,697.08
35,254,888.04
2,952.23
671,983.63
156,979.32
11,870,122.43
112
REPORT ON THE FINANCJES.
Comparison of expenditures, fiscal years 1922 and 1921, on the basis of warrants issued
(net)—Continued.
1922
.
1921
Increase, 1922.
Decrease, 1922.
DEPARTMENT OF COMMERCE.
Office of t h e S e c r e t a r y
B u r e a u of F o r e i g n a n d Domestic Commerce
S t e a m b o a t I n s p e c t i o n Service
B u r e a u of N a v i g a t i o n
B u r e a u of S t a n d a r d s
B u r e a u of L i g h t h o u s e s
Coast a n d Geodetic S u r v e y . . .
I n c r e a s e of c o m p e n s a t i o n
Miscellaneous
T o t a l , D e p a r t m e n t of
Commerce
-
$359,926.44
$367, 276.86
1,160,266.47
2,764,445.10
838,534.23
297,780.39
1,753,577.93
9,062,763.72
I,690,489i3i3
1,153,938.04
2,009,79L04
78,634. 20
850,577.23
.6,257,455.53
968,636.58
316,760.58
1,634,649.52
9,719,309.48
1,925,36L92
1,324,46L04
2,519,707.52
8,392.79
$309,689.24
$7,350.42
21,170,146.99
25,892,589.05
498,859.06
1,153,194.11
706,23L93
4,406,340.45
289,794.67
1,297,349.13
1,161,429.22
685,746.83
2,599,199.20
• 292,647.16
1,260,905.68
20,485.101,807,141.25
9,283,138.54
6,179,618.39
8,000,000.00
3,100,000.00
1,190,605.64
3,172,151. 29
4,358, m . 51
1,839,625,10
559,727.76
9,560,868.11
1,669,385.70
487,410.21
170,239.40
72,317.55
2,500,000.00
2,500,000.00
758,420.94
151,074.08
4,794,782.17
1,580,337.01
1,686,473.63
705,384.42
122,513.01
5,950,300.54
1,623,156.18
1,473,995.16
596,556.14
1,531,280.43
1,843,342.61
32,980.62
1,875,528.06
154,800.80
2,158,666. 27
1,181,875.99
1.735.455.67
103,862.34
2.266.726.68
165,395.02
47,578,768.08
48,804,923.39
3,493,010.43
130,102.35
18 980.19
i i s , 928.4i
656,545.76
234,872.49
170,523.00
509,916.48
70,241.41
5,221,30L12
DEPARTMENT OF THE
INTERIOR.
I n t e r i o r civil:
Office of t h e Secretary
npTiprai L a n d Office
P e n s i o n Office
Civil-service r e t i r e m e n t
a n d d i s a b i h t y fund—
C u r r e n t expenses
C o n s t r u c t i o n a n d operat i o n of railroads i n
Alaska
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
Office
of
Architect,
Canitol
Tipplamation Sf^rviCG
R e c l a m a t i o n special fund.
Geological Survey
B u r e a u of Mines
Adjustment and paym e n t of m i n e r a l c l a i m s ,
not of ATflr 2 IQIQ
National narks
Territorial governments..
Increase of c o m p e n s a t i o n .
Miscellanpons
T o t a l , I n t e r i o r civil
I n d i a n affairs:
Current a n d contingent
expenses
FulfiUing t r e a t y s t i p u l a tions
MisceUaneous s u p p o r t s . .
• Interest on I n d i a n trust
funds..
Supp.ort of I n d i a n schools.
Miscellaneous e x p e n s e . . .
T r u s t funds
Total, I n d i a n affairs....
Pensions:
A r m y pensions
N a v y pensions
Fees of e x a m i n i n g
geons, etc
1,074,556.92
.
8,235.11
2,852.49
36,443.45
5,202,696. 60
53,036.52
28,561.07
1,155,518.37
42,819.17
212,478.47
1,562,110.13
349,404.44
107,886.94
70,881.72
391,198.62
10,594.22
7,220,751.12
369,552.73
1,444,109.65
678,471.70
636,986.07
595,190.15
700,258.19
83,281.55
1,139, 292. D7
4,447,881.09
3,926,242.18
26,596,982.55
1,129,733.11
4,788, l i s . 33
4,570,048.21
28,243,349.96
9,559.46
38,500,413.08 |
41,470,807.60
92,841.01
243,807,151.41
8,441,828. 42
8,446,906.43
63,272.12
340,237.24
643,806.03
1,646,367.41
251,394,689.21
8,886,899.71
3,063,235.53
7,587,537.80
445,071.29
sur327,867.87 |
329,827.21
1,959.34
Total pensions
252,576,847.70 1
260,611,416.13
8,034,568.43
T o t a l , Interior D e p a r t m e n t , including p e n sions a n d I n d i a n affairs
,
3.38,656,028.86 |
350,887.147.12 |
7,313,592.13 |
19,544,710.39
SECEETARY OF THE TREASURY.'
113
Comparison of expenditures, fiscal years 1922 and 1921, on ihe basis of warrants issued
(net)—Continued.
1922
1921
Increase, 1922.
Decrease, 1922.
D E P A R T M E N T OF JUSTICE.
Department of Justice proper:
Salaries and expenses
Detection and prosecution of crimes
Increase of compensation,
Judicial:
Courts, salaries and expenses
Fees of jurors and witnesses
Support of prisoners
Penitentiaries
Miscellaneous
Total Department of
Justice
$1,057,833. 73
$1,028,912. .59
1,768,955.10
766,473. 66
2,320,732. 87
778,755.81
8,420,327. 49
8,530,511.74
2,440,732.19
1,308,687.23
1,392,647.-39
694,626. 76
2,351,201.72
953,425. 88
1,494,075. 81
189,834.11
89,530. 47
355,261.35
17,850,283. 55
17,647,450 53
978, .505. 61
354,942.97
233,208.71
3,658,199.33
690,033.08
467,741. 43
75,422.27
534,937.57
215,117.03
452,301.46
257,144.12
4,348,302.03
668,668.71
254,677.04
82,645.00
616,655.95
360,462.57
21,364.37
213,064.39
6,229,602.3
7,040,856.88
234,428.76
2,098,140.89
2,794,203.86
1544,956.98
11,115,051.21
271,433.60
4,872,031.43
8,121,868.49
8,844,916.53
6,571,945.18
20,190,116.15
20,989,827.74
10,407,766.80
6,788,898.27
33,459,963.90
12,867,959.25
1,562,850.27
216,953.09
13,269,847.75
23,211,239.75
34,534,125.31
11,322,885.56
$28,921.14
$551,777.77
12,282.15
101,428. 42
504,792.65
775,672.59
D E P A R T M E N T OF LABOR.
Office of the Secretary
Bureau of Labor Statistics..
Bureau of Immigration.:...
Bureau of Naturalization...
Children's Bureau
Women's Bureau
Increase of compensation.'..
Miscellaneous.'.
Total, Department of
Labor
:...
97,358. 49
23,935.41
690,102.70
7,222.73
81,718.38
145,345.54
1,045,683.25
NAVY D E P A R T M E N T .
Salaries and contingent expenses (civil)
Office of the Secretary, miscellaneous items
Pay, miscellaneous
Bureau of Navigation:
Outfits on first enhstment
Transportation
Other items
Bureau of Engineering
Bureau of Construction and
Repair
Bureau of Ordnance:
New batteries for ships
of the Navy
Ordnance and ordnance
stores
Otheritems
Bureau of Supply and Accounts:
Pay of the Navy
Provisions
Fuel and transportation..
Freight
Maintenance
Naval supply account
fund.. -:
Clothing and small stores
special fund
Navy aUotments, trust
• fund
•
Other items
Bureau of Medicine and Surgery
Bureau of Yards and Docks..
Bureau of Aeronautics
Naval Academy
•..
Marine Corps:
Pay
Maintenance
Other items
Increase of the Navy.
General account of advances.
MisceUaneous
Increase of compensation.
Navy Department, including Naval Establishment...
816,390.58
6,243,019.78
4,202,364.35
10,008,641.17
5,806,276.82
13,071,539.86
1621,775.18
21,350,918.58
12,707, OOL 45
8,279,378.72
13,328,866.63
170, 660,523. 38
41,156,957.40
81, 242,658.30
18,878,419.12
10,035,594.87
169, 455, 338.82
49,830,671. 68
29,357,476.39
6,851,076. 89
10,712,989.27
32,694,233.17
226,623, 334. 57
42,159,900.61
6,542,791.79
1,118,152.88
194,525. 50
5,970, 387.96
1,178,181.26
4, 852,235.08
983, 655.76
6,000,990.66
19,^873,216.56
13,611, 862.96
2, 457, 827.55
6,265,573.51
25,159, 861. 48
24,633,629.86
2,477,347.99
264,582. 85
5,286,644.92
11,021,666.90
19, 520. 44
23, 807,665.74
9,060,819.54
2,579,916.64
143,028,025.57
' 257,189,984. 59
732,133.83
16,188,164. 63
16,303,316. 27
2,808,878.71
202, 469,924.00
1 333, 660,373. 64
776,011.43
430,922. 68
19,741,260.23
458,794, 812. 62
647, 870, 645.21
Total, Navy Department
' Excess of repayments, deduct.
14263—FI 1922
696,062.97
8
1,205,184.56
8,673,714.28
51,885,181.91
12,027, 342. 23
677, 394.40
193,929,101.40
35,617,108. 82
7, 619,501.11
. 7,242,496.73
228,962.07
59, 441, 898. 43
176,470,389.05
43, 877. 60
19, 310, 337.55
114,'597, 338. 41
303,673,171. 00
114
REPORT ON THE FINANCES.
Comparison of expenditures, fiscal years 1922 and 1921, on the basis of warrants issued
(net)—Continued.
1922
1921
Increase, 1922.
Decrease, 1922.
POST OFFICE D E P A R T M E N T .
Salaries
,
Deficiency i n p o s t a l revenues.
Miscellaneous expenses
$3,220,085. 87
64,346,234. 52
257, 750. 22
$2,397,129.12
130,128, 458.02
1, 518, 401.90
$822,956.75
T o t a l , P o s t Office Department
F e d e r a l control of telegraph
and telephone systems
67, 82^1, 070.61
134, 043, 989. 04
822, 956.75
613. 20
1,195, 708.79
1, 495, 235.31
8, 864, 356.16
1, 313, 265.94
7, 210, 625.33
181,969. 37
1,653, 730. 83
10, 359, 591. 47
;, 523, 891. 27
1, 835, 700. 20
$65,782,223.50
1, 260, 651.68
67,042,875.18
1,195, 095. 59
STATE D E P A R T M E N T .
Salaries a n d expenses
Foreign intercourse
Total, State
ment
Depart,
TREASURY D E P A R T M E N T .
Office of t h e Secretary
,
Office of t h e chief clerk a n d
superintendent
,
Office of Commissioner of Acc o u n t s a n d Deposits
Division of B o o k k e e p i n g a n d
Warrants
,
Division of Deposits
P u b l i c D e b t Service
,
Divisioii of A p p o i n t m e n t s
Division of P r i n t i n g a n d Stationery
Division of Mail a n d Files
Office of d i s b u r s i n g clerk
C u s t o m s service:
Administrative salaries.,
Collecting t h e r e v e n u e
from c u s t o m s
Miscellaneous e x p e n s e s . . .
Refunds, debentures,
d r a w b a c k s , etc
Special funds
B u r e a u of t h e B u d g e t
Federal F a r m Loan B u r e a u . .
Office of T r e a s u r e r of t h e
United States
Office of ComptroUer of t h e
Currency
I n t e r n a l R e v e n u e Service:
Administrative salaries...
Collecting t h e r e v e n u e
E n f o r c e m e n t of n a r c o t i c
a n d prohibition acts
Miscellaneous e x p e n s e s . . .
Refunds, debentures,
drawbacks, etc
Snecial funds
Coast" G u a r d
Coast G u a r d a l l o t m e n t s , t r u s t
fund
B u r e a u of E n g r a v i n g a n d
Printing:
A d m i n i s t r a t i v e salaries
a n d misceUaneous i t e m s .
C o m p e n s a t i o n of employees
Materials a n d misceUaneous e x p e n s e s
Plate printing
Secret Service
P u b l i c H e a l t h Service:
A d m i n i s t r a t i v e salaries
a n d misceUaneous i t e m s .
Hospital construction...
Medical a n d
hospital
services
P a y of commissioned
officers,
pharmacists,
acting a s s i s t a n t surgeons, a n d other e m ployees
93, 878.62
71,333.68
22, 544.94
988, 756.07
959, 930. 45
28, 825.62
7 632, 409. 70
384, 571.06
15, 427.73
5, 850.00
5, 850.00
'
7 1,016,980.76
15,427.73
5, 210,650. 41
46, 709.14
14,124, 283. 78
40, 417.00
6, 292.14
361, 845. 02
15, 476. 59
27,093. 88
767,910. 54
12, 211.13
26,836. 94
3, 265.46
256.94
1, 913,633. 37
406,065.52
60,829.70
67,459.52
10,876,122.74
245,656. 84
10,813,748.57
93,514.80
62,374.17
152,142.04
36,588,098.60
833.87
115,325.20
233,787.01
23,508,903.43
3,597.96
5,000.00
208,416.75
13,079,195.17
6,629.82
2,764.09
110,325.20
25,370.26
1, ^ 9 , 4 2 8 . 86
1,599,334.86
30,094.00
2,290,745.84
1,843,651.14
447,094.70
661,245.05
33,175,784.19
619,459.91
32,524,619.99
41,785.14
651,164.20
7,224,417.93
37,800.21
6,819,486.23
78,423.07
404,931.70
51,095,516.07
352,111. 92
12,096,434.57
30,420,052.56
3,944,135.00
12,456,317.06
20,675,463.51
55,913. 86
349,086.01
40,622.86
3,692,023.08
359,882.49
293,172.15
9,852.09
225,326.91
235,179.00
2,252,288.72
2,187,915.79
64,372.93
1,353,234.84
1,793,731.90
396,821.32
1,385,500.49
1,764,175.48
377,753.59
2t),556.42
19,067.73
2,283,881.15
3,044,656.61
2,758,354.32
3,718,509.47
474,473.17
673,852.86
27,299,595.84
35,437,847.37
;, 138,251. 53
2,072,110.53
2,108,691.15 1
32,265.65
1
36,580.62
» I n c l u d e s $536,057.01 for 1922 a n d $72,032.20 for 1921, charges on silver dollar b u U i o n sold u n d e r P i t t m a n Act.
115
SECRETARY OF THE TREASURY.
Comparison of expenditures, fiscal years 1922 and 1.921, on the basis of warrants issued
(net)—Continued.
1921
TREASURY
Increase, 1922,
Decrease, 1922.
DEPARTMENT—
continued.
Public Health Service—Con.
Pay of personnel and
maintenance of hospitals
Mints and assay offices
Bureau of War Risk Insurance 8 (now U . S . Veterans'
Bureau):
Salaries and expenses
Medical and hospital
services
Military and naval compensation
MiUtary and naval family
allowance
,
Miscellaneous items
Special funds—
Military and naval
insurance
Miscellaneous special
funds
,
Trust fmid—
Government Ufe insurance fund (investments)
Government life insurance fund (expenses)..;
,
PubUc buildings:
Office of Supervising
Architect
,
Public buildings, construction and rent
,
Hospitals
Quarantine stations
Repairs, equipment, and
general expenses
Operating expenses
American Printing House for
the Bhnd
'
Increase of compensation
MisceUaneous
,
Accomiting offices
,,
Total Treasury
partment.:
De-
$4,264,185. 34
1,183,826.99
$10,179,750.06
1,489,619.11
$5,915,564.72
305,792.12
31,886. 67
9,553,867.07
9,521,980.40
1,438,906.29
4,989,765.46
3,550,859.17
8,137,465. 39
127,416,407.31
119,278,941.92
271,506.37
2.25
14,855,449. 26
19,811.65
7,746,754.10
75,8.52,541.96
68,105,787. 86
1 56,486.43
8,949.0(3
65,435.49
2,015,094. 52
• 20, 558,946.94
18,543,852.42
400,938.20
2,526,624.08
2,125,685.88
14,583,942.89
$9,813. 90
201,701.31
202,344. 03
642.72
2,123,192.67
74,022.19
173,757.14
2,413,269.11
313,278.54
1,802,616.96
290,076.44
239,256.35
1,628,859.82
11,380,719.19
7,123,643.52
4,405,499.27
6,728,257. 66
50,000.00
12,080,284.14
1 478,162, 89
50,000.00
14,154,309.10
1 609,749. 06
3,407,596.08
(«)
263,407,605.46
492,253,997. C
6,975,219.92
395,385.86
131,586.17
43,771,976.91
2,074,024.96
'3,'407,'596.'08
272,618,368.54
WAR DEPARTMENT.
Mihtary activities:
War Department proper,
1,470,273.65
6,498,091. 55
5,027,817.90
salaries
5,039,638.44
5,882,908.53
Finance Department
843,270. 09
370,744,986.13
421,437,334.23
Pay of the Army
.-.
50,692,348.10
Army aUotments, trust
2,920,087.82
3,015,504.44
1 95,416.62
fund
Quartermaster CorpsGeneral appropria309,394,767.34
tions...
118,066,698.74
1 191,328,068.60
Barracks and quar6,907,380.34
ters
228,632.81
7,136,013.15
Construction and re2,486,415. 42
790,712,14
pair of hospitals.....
3,277,127. 56
Inland and port storage and shipping
22,623,523.72
27,488,520.67
4,864,996.95
facihties
SuppUes, equipment,
etc., Keserve Offi1,296,150. 79
3,710,205.20
2,414,054. 41
cers' Training Corps
Roads, w a l k s ,
wharves,
and
2,465,970.30
2,107,703.21
4,573,673.51
drainage
Subsistence of the
(10)
14,345,209.58
14,345,209. 58
Army
1 Excess of repayments, deduct.
8 Expenditures for 1922 to Aug. 9,1921; see U. S. Veterans' Bureau, p. 110, for expenditures subsequent
to such date.
9 See General Accounting Office, p. 110, for expenditures for 1922.
10 Paid from " General appropriations, Quartermaster Corps," in 1921.
116
REPORT ON T H E FINANCES.
Comparison of expenditures, fiscal years 1922 and 1921, on the basis of warrants issuea
(net)—Continued.
1921
Increase, 1922.
Decrease, 1922,
WAR DEPARTMENT--contd.
M i l i t a r y activities—Contd.
Quartermaster
CorpsContinued.
Supplies,
services,
and transportation.
MisceUan eous i t e m s . .
Signal Service
Air Service
Medical D e p a r t m e n t
B u r e a u of I n s u l a r Affairs.
Engineer D e p a r t m e n t —
Fortifications, etc., P a n a m a Canal
Ordnance D e p a r t m e n t O r d n a n c e service
O r d n a n c e stores a n d
suppUes
,...
Ammunition
A u t o m a t i c rifles a n d
manufacture
of
arms
Nitrate plants
A r m a m e n t of fortifications
Arsenals
O r d n a n c e storage facihties
Other items under
Ordnance Department
T a n k Service
Chemical Warfare Service]
National Guard
MiUtary A c a d e m y
- MisceUaneous m i h t a r y . . .
Vocational training of
soldiers...
Increase of compensation,
MiUtary E s t a b U s h m e n t .
A r m y account of advances]
T o t a l , m i l i t a r y activities
.^
N o n m i U t a r y activities:
PubUc
buildings and
grounds
N a t i o n a l cemeteries—
Disposition
of rem a i n s of officers,
soldiers, a n d civil
employees
Other items under
n a t i o n a l cemeteries
National military p a r k s . .
. National homes
for
disabled v o l u n t e e r soldiersMedical a n d h o s p i t a l
services
Care a n d m a i n t e n a n c e '
M o n u m e n t s .*
W a r claims a n d rehef a c t s .
Artificial Umbs, trusses,
a n d appUances for disa b l e d soldiers
MisceUaneous war, c i v i l . .
Increase of c o m p e n s a t i o n ,
civil
P a n a m a C a n a l , operation
and maintenance
T r u s t fimds—
P a y of t h e A r m y deposit fund
Soldiers' H o m e permanent fund..
P r e s e r v a t i o n of b i r t h place of A b r a h a m
Lincoln
$36,604,2S1. 77
10,717,046. 09
2,172,988.60
23,363,506. 89
2,396,466.70
2,168. 38
12,284,961.12
$23,794,210. 94
4,647,011.36
3,789,448.99
34,135,867.99
6,827,102.64
1 512.70
133,538,743.81
$1,616,460.39
10,772,361.10
4,430,635.94
2,681.08
45,823,704.93
896,327. 45
2,088,007.06
. 1,191,679.61
2,326,575. 50
7,101,291.30
4,774,715.80
249,201.35
3,826,221. 52
4,762,412.95
6,589,177. 58
4,513,211.60
2,762,956.06
1,946,040.12
1,035,788.26
12,449,912.01
7,822,208. 20
10,503,871. 89
6,786,419.94
5,388,075.98
1,755,022.63
45,259,017.08
3; 657,895.71
39,870,94L10
1,902,873.08
802, SSO. 85
4,581,484.43
3,778,603.58
169,835.07
329,050.64
2,334,932.92
20,818,741.09
2,445,842." 29
2,031,877.00
1 309,124.94
280,588.01
1,873,592. 57
7,970,815.42
1,410,967.17
1,657,318.50
48,462.63
461,340.35
12,847,925.67
1,034,875.12
374,558. 50
1239,289.87
749,899.30
3,855,419.08
3,105,519. 78
6,303,550.28
112,597,672.15
15,985,116.24
20,603,527.39
9,681,565.96
33,201,199.54
334,078,714.35
478,890,504.79
849,857.06
897,598.77
47,741.71
5,512,67L37
11,927,974.02
6,415,302.65
383,689.20
151,627.12
473,992.65
189,776.80
90,303.45
38,149.68
2,053,435.76
8,776,588.69
22,44L80
1,059,013.84
4,570,000.00
6,313,478.65
55,445.67
375,744.83
48,4n.80
928,133.02
. 138,725.96
1,340,529.72
I E x c e s s of repajrments, d e d u c t .
$12,810,070.83
6,069,434.73
403,213,030.76
548,024,821.20
2,516,564.24
2,463,110.04
33,'663.'87
"'683,'269.*6i"
90,314.16
412,396.70
1,181,952.79
1,456, IOL 78
274,148.99
•2,791,035.40
16,230,390.79
13,439,355.39
7,434.65
12,159,27L52
948,515.51
1,271,876.21
2,500.00
1,700.00
2,166,706.17
323,360.70
800.00
SECRETARY OF T H E
117
TREASURY.
Comparison of expenditures, fiscal years 1922 and 1921, on the basis of warrants issued
(net)—Continued.
1922
1921
Increase, 1922.
Decrease, 1922.
•
WAR DEPARTMENT—cont'd.
N o n m i l i t a r y activities—Con.
Rivers and h a r b o r s I m p r o v i n g rivers
Improving harbors...
Special funds for rivers a n d h a r b o r s . .
$37,079,036.52
2,881,657.37
$45,602,287.93
9,496,07L31
$8,523,251. 41
6,614,413.94
420,229.69-
3,301,733.37
3,721,963.06
Total, nonmihtary
activities
67,979,735.27
101,904,386.63
$5,313,885.22
39,238,536.58.
Total, W a r Department
,;
402,058,449.62
580,794,S9L42
408,526,915.98
587,263,357.78
717,834.36
1 175,133. 04
989,485,409.93
142,311. 51
73,896,697. 44
8,600,000.00
996,676,803.75
990,170,422.76
1,079,173,501.19
142,311.51
89,145,389.94
3,195,622,729.96
4,467,332,578.98
1,049,801,244. 94
2,321,511,093; 96;
1,049,801,244, 94
2,321,448,976. 51
SPECIAL ACCOUNTS.
P u r c h a s e of obligations of
foreign G o v e r n m e n t s
P u r c h a s e of farm loan b o n d s . .
I n t e r e s t on t h e p u b l i c d e b t . .
P r e m i u m on t h e p u b l i c d e b t .
.
D e d u c t r e p a y m e n t s received
i n fiscal j^ear b u t n o t covered b y w a r r a n t
f.
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 fiscal year s u b s e q u e n t t o t h e ' deposit
thereof
Total, ordinary warrant
expenditures
A d j u s t m e n t s t o t h e general
fund:
AddD i s b u r s i n g oflicers'
credits, etc., a t beginning of fiscal year
Unpaid warrants at
beginning of fiscal
year
r
Deduct—
Disbursing
oflicers'
credits, etc., a t
close of fiscal y e a r . .
Unpaid warrants at
close of fiscal y e a r . .
73,178,863. OS
8,775,133.04
7 191 393.82
142,311. 51
6,085. 41
68,202,86
3,195,616,644. 55
4,467,264,376.12
68,202. 86
1,449,091.98
3,195,684,847. 41
4,468,713,468.10
769,363,200. 53
1,400,194,82L 10
62,117. 45
1,380,889.12
1,049,801,244.94
2,322,829,865.63
630,831,620. 57
21,584,162. 21
16,756,579.65
4,827', 582.56
3,986,632,210.15
5,885,664,868.85
1,054,628,827.50
624,470,588. 44
769,363,200.53
1,965,257.07
21,584,162. 21
19,618 905.14
626,435,845. 51
790,947,362.74
164,511,517.23
T o t a l o r d i n a r y cash
"3,360,196,364.64 115,094,717,506.11
expenditures
2,953,661,486.20-
144,892,612. 09
1,054,628,827.50
• 2,789,149,968.97
PUBLIC DEBT.
F i r s t L i b e r t y loan, a t 3^ p e r
cent
F i r s t L i b e r t y loan, converted
a t 4 p e r cent
F i r s t L i b e r t y loan, converted
a t 4^ p e r cent
Second L i b e r t y loan
Second L i b e r t y loan, c o n - .
v e r t e d a t 4^ p e r c e n t . . .
T h i r d L i b e r t y loan
F o u r t h L i b e r t y loan
Victory L i b e r t y loan
72,200.00
150.00
300.00
550. 00
342,550. 00
650.00
199,300.00
1,000.00
5,938,850.00
137,772,300.00
9,476,600.00
1,907,986,250.00
8,769,450.00
51,155,500. 00
39,499,250.00
332,587,450.00
72,050.00
250.00
143,250.00
350. OO
2 830 600.00
86,616,800.00
30,022,650.00
1,575,398,800.00
11 Exclusive of public debt retirements chargeable against ordinary receipts during 1922 of $422,352,950
id during 1921 of $422,393,350, which amounts are included in this table under public debt expenditures.-
118
REPORT ON T H E FINANCES.
Comparison of expenditures, fiscal years 1922 and 1921, on the basis of warrants issued
(net)—Continued.
1922
1921
Increase, 1922.
Decrease, 1922.
PUBLIC DEBT—continued.
$50,620.00
$143,200. 00
$92,580.00
4,775,873,950.00
8, 552,216,500.00
3,776,342,550.00
85,415,860. 52
107,251,870. 00
6,200. 00
1,262.40
159,731,963.18
37,460,631.00
3,600.00
5,469.69
$69,791,239.00
2,600.00
7,030,189,462.92
9,181,774, Oie. 87
1,732,024,739.00
3,883,609,289.95
Total cash expenditures,
exclusive of postal... 10,390,385,827. 56
Postal Service, payable from
484,853,540.71
postal revenues
14,276,491,519.98
2,786,653,566.50
6,672,759,258.92
463,491,274.70
21,362,266.01
14,739,982,794.68
2,808,015,832.51
Loan of 1908-1918
Certificates of indebtedness,
various issues .
. .-.
Treasury (war) savings securities 1
.
B ank-note fund
Funded loan of 1907
Miscellaneous redemptions...
Total public debt expenditures
Total expenditure, including postal
10,875,239,368.27
74,316,102.66
i "^07 29
6,672,759,258.92
The following table shows estimates of receipts and expenditures
for the fiscal years 1923 and 1924 compared with classified receipts
and expenditures (warrant basis) for the fiscal year 1922:
Comparison of estimated receipts, fiscal years 192S and 1924, with actual receipts for the
fiscal year 1922 on the basis of warrants issued (net).
E s t i m a t e d , 1924.
Receipts (ordinary):
Customs:
Internal r e v e n u e I n c o m e a n d profits t a x e s
Miscellaneous i n t e r n a l r e v e n u e
Sales of p u b h c l a n d s
Miscellaneous r e c e i p t s A s s e s s m e n t s on F e d e r a l reserve a n d n a tional "banks
,
Consular f e e s . , r.
,
.District of Columbia
,
F e d e r a l reserve b a n k franchise t a x
,
F a r m loan b o n d s Principal
Interest
Foreign l o a n s Principal repayments
Interest
I n t e r e s t on foreign obligations, sale of surplus property b y War D e p a r t m e n t . . . . .
I n t e r e s t on p u b h c deposits ( T r e a s u r y ) —
N a v a l h o s p i t a l fund, fines, forfeitures, etc.
Oil leasing a c t receipts
P a n a m a Canal tolls, e t c
Profits on coinage, buUion deposits, e t c . ' . .
Sale of w a r s u p p l i e s War Department
Navy Department
Sale of G o v e r n m e n t p r o p e r t y
T a x on circulation of n a t i o n a l b a n k s
T r u s t fund r e c e i p t s I n d i a n m o n e y s , proceeds of labor
P r e m i u m s on c o n v e r t e d war-risk insm-ance
,
O t h e r t r u s t fund receipts
O t h e r miscellaneous receipts
E s t i m a t e d , 1923.
$425,000,000.00
$450,000,000. 00
$357,544,712:40
1,500,000,000.00
925,000,000. 00
600,000.00
1, 500,000,000. 00
900,000,000.00
725,000. 00
2,086,918,464.85
1,121,239,843.45 895,391. 22
2,000,000.00
4,600,000.00
17,256,500 00
10,000,000. 00
2,000,000.00
4,600,000.00
17,985,315. 00
10,000,000.00
5,079,769.36
6,712,979.11
14,777,218.19
59,974,465.64
25,000,000.00
3,909,825.00
25,000,000.00
5,034,825.00
44,400,000.00
8,611,170.08
31,225,000.00
222,761,045.00
31,250,000.00
224,737,965.00
49,114,107.46
6,607,723.54
3,000,000.00
1,378,000.00
9,000,000.00
14,224,000.00
10,000,000.00
3,972,500.00
1,378,000.00
9,000,000.00
13,924,000.00
17,000,000.00
21,107,317.25
7,388,278.07
12,547,632.58
8,537,480.25
12,049,660.75
21,660,921.07
25,800,000.00
1,000,000.00
7,592,410.00
3,877,773.00
70,000,000 00
12,000,000 00
12,345,325.00
4,111,523.00
78,268,106.20
11,048,530.93
22,838,951.33
4,537,773.70
20,000,000 00
20,000,000.00
22,294,874.18
33,733,848. 00
11,585,33L00
53,268,627.00
31,183,640.00
10,012,882.00
53,601,984.00
26,007,398.63
9,637,308.51
84,141,848.04
3,361,812,359.00
3,429,862,959.00
4,103,741,926.79
A d j u s t m e n t t o t h e general fund: Decrease i n
uncovered m o n e y s on J u n e 30, 1922, u n d e r
s u c h a m o u n t on J u n e 30,1921
T o t a l o r d i n a r y receipts, exclusive of postal
revenues
,
A c t u a l , 1922,
145,395.75
3,361,812,359.00
3,429,862,959.00
4,103,596,531.04
119
SECRETARY OF T H E TKEASURY.
Comparison of estimated expenditures, fiscal years 192S and 1924, with actual expenditures
for thefiscal year 1922, on the basis of warrants issued (net).
Estimated, 1924. Estimated, 1923.
Expenditures (ordinary):
Legislative
.
Executive Office
Independent officesAlien Property Custodian
Alaska relief funds
Anthracite and Bituminous Coal Commission
Arlington Memorial Bridge Commission..
Board of Mediation and ConciUation
Bureau of Efficiency
Civil Service Commission
Commission of Fine Arts
$14,139,128.00
378,280.00
$14,289,364.00
364,360.00
$16,725,922.69
216,534.74
275,000.00
20,000.00
300,000.00
20,000.00
363,965.02
14,877.22
10,000.00
10,000.00
190,000 00
12,000.00
141,850.00
864,197.00
5,937.00
149,050.00
760,000.00
6,417.00
Committee on PubUc Information
....
Council of National Defense
3,160,000.00
Employees' Compensation Commission...
3,075,ooo; 00
6,146,187.00
Federal Board for Vocational Education..
5,604,530.00
Federal Fuel Distribution
100,000.00
Federal Narcotic Control Board
2,500.00
59,903.00
Federal Power Commission
. 60,000.00
Federal Reserve Board
940,000. 00
Federal Trade Commission
900,000.00
2,994,000. 00
General Accounting Office
3,500,000.00
Grant Memorial Commission
1,800.00
Lincoln Memorial Cominission
3,600.00
Perry's Victory Memorial Commission
75,000,00
United States Housing Corporation
814,250.00
971,900.00
" Interdepartmental Social Hygiene Board.
Interstate Commerce Commission
5,200,000. 00
4,468,000.00
Interstate Governmental Commission,
Colorado River
^ 10,000.00
National Advisory Conimittee for Aeronautics
250,000.00
215,000.00
.Railroads
40,183,847. 00
234,960,000.00
Railroad Labor Board
330,000 00
335,000 00
Smithsonian Institution
620,000.00
736,000 00
State, War, and Navy Department Buildings
2,196,000 00
2,705,000 00
Tariff Commission
650,000. 00
340,000.00
U. S. Geographic Board
1
2,000.00
1,000.00
U. S. Shipping Board
1 30,388,000 00
38,508,515.00
U. S. Veterans' Bureau
2 451,573,000.00 2 464,184,959.00
War Finance Corporation
160,000,000.00 1 125,000,000.00
Miscellaneous items
District of Columbia
23,800,000.00
24,800, oop. 00
DepartmentalDepartment of A g r i c u l t u r e . . . .
.....
154,100,440. 00
156,586,899. 00
Department of Commerce
18,678,000.00
21,495,000 00
Interior Departnient—
Civil.
35,996,953.00
38,375,5n, 00
32,920,000.00
Indian Service..
.
...
32,132,000.00
Pensions (includes examining fees)
250,924,000.00
275,758,000.00
18,329,000.00
18,364,484.00
Department of Justice
Department of Labor
5,983,775.00
6,770,120.00
Navy Department—
119,000,000 00
120,800,000.09
Pay of the Navy
Increase of the Navy
.
29,000,000 00
53,200,000.00
Marine Corps
24,990,000.00
25,749,748.00
AU other
149,030,637.00
149,442,521.00
Post Office Department, including postal
deficiencies, but excluding Postal Service payable from postal revenue
1 952,440.00
3 31,517,170.00
State Department
15,245,724.00
15,960,089.00
Treasury Department— •
37,709,093.00
141,421,090.00
Refunds of revenue
Colledting the revenue
48,978,933.00
50,238,623. 00
PubUc buildings, construction, repairs, equipment, and operation...
11,031,360 00
22,289,620. 00
Another....
56,837,148.00
69,989,794.00
1 Excess of repayments, deduct.
2 Exclusive of Army, Navy, and Marine Corps allotments of pay.
3 Includes $14,600 additional compensation payable from Treasury.
< Includes expenditures of $17,970,972.84 under Bureau of War Risk Insurance (Now
Bureau) to Aug. 9.1921.
Actual, 1922.
.68
6,657.29
139,667.78
665,978.64
- 10,544.95
1 18,214.37
1,248.69
2,689,005.88
18,567,989.79
•36,992.53
4,456,034.14
953 537 94
2,537,374.25
1,387,240.06
412,468.16
5,391,271. 55
175,034. 55
1 125,232,444.02
402,61L91
835,497.54
1,639,607.86
318,612. 55
86,145,816.32
2 408,149,678.89
1,570,715.77
23,739,685.60
143,984,462.69
21,170,146.99
38,295,629.54
38,500,413.08
252,576"847.70
17,850,283.55
6,229,-602.39
170,660,523.38
143,028,025.57
35,448,401.92
109,657,86L75
67,824,070.61
, 10,359,59L47
87,683,614.67
44,051,906.93
21,077,036.02
4 109,264,966.15
'
U. S. Veterans
120
REPORT ON T H E FINANCES.
Comparison of estimated expenditures, fiscal years 1923 and 1924, with actual expenditures
for thefiscal year 1922, on the basis of warrants issued (net)—Continued.
•Estimated, 1924. Estimated, 1923.
Expenditures (ordinary)—Continued.
Departmental-Continued.
War Department—
^
Pay of the Army
Panama Canal, operation and maintenance
Rivers and harbors
All other
i
Interest on the public debt
i nvestment of trust funds :
Government life insurance fund
Civil service retirement and disability fund
District ofColumbia teachers' retirement fund
Federal control of telephone and telegraph
systems
T.
Actual, 1922.
$123> 748,830. 00
$128,000,000 00
$50,692,348.10
6,340,000. 00
40,000,000. 00
146,737,802.00
950,000,000. 00
6,900,000 00
48,000,000. 00
150,038, 598. 00
1,100,000,000 00
2,791,035. 40
43,262,427.26
305,312,638.86
989,485,409.93
30,417,000. 00
6,000,000. 00
200,000. 00
27,183,000.00
6,000. 000. 00
200,000 00
24,578,319.36
9,283,138. 54
249,500.00
Total
, 2,835,746,234.00
Adjustments to the general f u n d Decrease of uncovered repayments on
June 30, 1922, under such amount on
June 30,1921
Decrease in book credits .of disbursing
OfRcers and agencies with the Treasurer
on June 30,1922, under such amount on
June 30,1921
Decrease in amount of unpaid warrants
on June.30,1922,under such amount on
June 30,1921
3,373,712,871.00
3,195,622.729. 96
Total ordinary cash expenditures.
613. 20
62,117.45
144,892,612.09
19,618,905.14
2,835,746,234.00
3,373,712,871.00
3,360,196,364.64
298,872,000.00
283,838,800.00
275,896,000.00
31,225,000.00
31,250,000.00
64,837,900.00
5,000,000.00
5,000,000.00
20,893,200.00
10,000,000.00
10,000,000.00
60,333,000.00
392,850.00
Total public debt retirements chargeable
against ordinary receipts
345,097,000.00
330,088,800.00
422,352,950.00
Total expenditures chargeable against ordinary
receipts
3,180,843,234.00
3,703,^801,671.00
3,782,549,314.64
Excess of ordinary receipts over total expenditures chargeable against ordinary receipts...
Excess of total expenditures chargeable against
ordinary receipts over ordinary receipts
180,969,125.00
Public debt retirements chargeable against
ordinary receipts:
Sinking fund
PmcUases of Liberty bonds from foreign re. payments
Bonds and notes received for Federal estate
taxes
Redemptions from Federal reserve bank
franchise tax receipts
Forfeitures, gifts, etc.
321,047,216.40
273,938,712.00
1 Includes $125,000,000 of accumulated interest on war-savings certificates, series of 1918, to be paid during
the fiscal year 1923, though properly allocable to the full five years of their life and not simply to the fiscal
year 1923.
SECRETARY OF T H E TREASURY.
121
Estimated internal-revenue receipts under revenue act approved November 2S, 1921.
Fiscal year
1923.
Source of revenue.
Income tax:
Iiidi^adual
Corporation
Profits tax
Back taxes
,
Total income and profits tax
MisceUaneous internal revenue (see details below)
Total internal revenue
Miscellaneous internal revenue:
Estate tax
'.
-.
Telegraph and telephone
Alcoholic spirits, etc.. /
Beverages (nonalcoholic)—
Cereal beverages
Fruit juices and soft drinks
Fountain sirups
Carbonic acid gas
Tobacco and tobacco manufactures
Admissions and dues
Automobiles, trucks, parts, etc
Cameras and lenses
Photographic films and plates
.<?
Candy
.Firearms, sheUs, etc
Hunting knives, dirk knives, daggers, etc
Smokers' articles
Automatic vending machines, etc
Liveries, hunting garments, etc
Yachts and motor boats (sale).,
Art works
Carpets, rugs, trunks, valises, e t c —
Jewelry, watches, clocks, etc
Corporation capital stock
Stamp taxes, including playing cards
•
Oleomargarine, adulterated and process butter, etc
Miscellaneous taxes^ including occupational taxes and receipts under
national prohibition and narcotic laws
Total
Fiscal year
1924.
$700,000,000
375,000,000
125,000,000
300,000,000
$700,000,000
600,000,000
1,500,000,000
900,000,000
1,500,000,000
925,000,000
2,400,000,000
2,425,000,000
145,000,000
30,000,000
35,000,000
150,000,000
30,000,000
• 33,000,000
6,000,000
1,000,000
5,000,000
2,000,000
300,000,000
65,000,000
123,000,000
1,000,000
100,000
9,000,000
5,000,000
15,000
175,000
100,000
300,000
350,000
700,000
1,000,000
18,000,000
82,000,000
55,000,000
3,000,000
7,000,000
1,000,000
6,000,000
2,000,000
300,000,000
70,000,000
128,000,000
1,000,000
.100,000
10,000,000
6,000,000
15,000
175,000
100,000
400,000
400,000
700,000
1,250,000
22,000,000
85,000,000
56,000,000
3,000,000
200,000,000
12,260,000
11,860,000
900,000,000
925,000,000
Estimates of miscellaneous receipts for the fiscal years 192S and 1924, by various
departments and establishments of the Government.
1924
Legislative estabhshment
Executive Ofiice
State Department
Treasury Department
War Department (includes sale of surplus war supplii
Department of Justice
Navy Department
>
.
Interior Department
-s.
Department of Agriculture
Department of Commerce
Department of Labor
United States Veterans' Bureau
Repurchases of Federal farm loan bonds
United States Housing Corporation
Other independent offices and commissions.
District of Columbia
*...
Panama Canal
"
Federal reserve bank franchise tax receipts
Interest on foreign obligations
Repayments of foreign obligations
;
Total estimated misceUaneous receipts
$439, 468.00
1,000.00
6,104,300. 00
38,504, 778.00
89,384,947.00
11,590, 700.00
18,572, 000.00
39,415, 519.00
7,217, 800.00
3,259,050.00
4,297,200.00
34,483,•640.00
25,000, 000.00
3,453,000.00
242, 277.00
17,985, 315.00
13,924,000.00
10,000, 000.00
224,737, 965.00
31,250, 000.00
$462. 800.00
1,000.00
6,130,300.00
29,018, 992.00
38,465, 703.00
13,380,700.00
6,148,000.00
39,706, 587.00
7,247,000.00
3,578,500.00
4,347,200.00
38,717, 148.00
25,000,000.00
4,011, 000.00
130, 884.00
17,256, 500.00
14, 224,000.00
10,000,OOOOO
222,761,045.00
31,225,000.00
579,862,959.00
511,812,359.00
122
REPORT ON THE FINANCES.
Estimates for 1924 and appropriations for 1923.
APPROPRIATIONS FOR 1923.
Appropriations made for the fiscal year 1923 and for prior years
during the first session of the Sixty-seventh Congress from July
13, 1921, and the second session of the Sixty-seventh Congress to
Nov. 1, 1922, including revised estimated permanent and indefinite appropriations, and appropriations for the Postal Service
payable from postal revenues
%4, 250, 6.Z8, 595.66
Deduct:
^
Postal Service for 1923 payable' from the
postal revenues
1564, 524, 766. 50
Postal deficiencies of prior years, payable '
from postal revenues
8, 003, 431.14
Deficiencies and supplements for prior years. 403, 911, 707.19
976,439,904.83
Total appropriations for 1923, 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, 274, 238, 690. 83
Comparison of the estimates for 1924 with the appropriations for
1923 shows a decrease in the 1924 estimates of $195,298,359.14, as
exhibited in the table following, without, however, including in the
jSgures for 1923 the railroad guaranty, repayments under revolving
fund appropriations, repayments to appropriations, and appropriations of unexpended balances, the efiect of which on the appropriations for that year is shown on pages 47 to 4g.~of the report for the
fiscal year 1920, but after including in the 19§3^7figures $125,000,000
of accumulated interest on war-savings certificates, series of 1918, to
be paid during the fiscal year 1923, though properly allocable to the
full five years of their life and not simply to the fiscal year 1923.
123
SECRETARY OF T H E TREASURY.
Estimates of appropriations for 1924 compared with appropriations for 1923.
[Excluding Postal Service payable from the postal revenues.]
Department, etc.
1923 appropria1924 estimates,
including
including perma- tions,
revised permanent annual.
nent annual.
$14,418,912.60
Legislative
• o 407,850.00
Executive Office
Independent offices:
281,200.00
I. AUen Property Custodian
Arlington Memorial Bridge Commission
^•' Bureau of Efficiency
145, 000.00
CivU Service Commission
877, 295.00
000.00
I Commission of Fine Arts
6, 740.00
Employees' Compensation Commission
F Federal Board for Vocational Education
2,432, 000.00
^ Federal Fuel Distribution Office
6,427,
955, 000.00
Federal Trade Commission
:
3,361, 163.00
r General Accounting Office
870, 450.00
I Housing Corporation
4, 514, 500. 00
Interstate Commerce Commission
f Interstate Governmental Commission, Colorado River
260,000. 00
National Advisory Committee for Aeronautics.
340, 000.00
Railroad Labor Board
Smithsonian Institution and National Mu654,000.00
seum
1,707, 230.00
State, War, and Navy Department BuUdings.
2, 500.00
Federal Narcotic Control Board
,
, 59,495.74
Federal Power Cominission
,
1,800.00
Grant Memorial Commission
,
3,600.00
Lincoln Memorial Cominission
,
99,185.00
Perry's Victory Memorial Commission
,
700,000.00
Tarifi' Commission
,
United States Coal Commission...'
,
2,000.00
United States Geographic Board
:
50,4.11,500.00
^United States Shipping Board
,
United States Veterans' Bureau-—
55,363^ 000.00
Salaries and misceUaneous
,
118,450, 000.00
MUitary and naval compensation
,
90,000, 000.00
MUitary and naval insurance
,
52,000, 000.00
Medical and hospital facUities and services,
124,500, 000.00
"Vocational rehabilitation.'
,
20, 000.00
^ Indigent in Alaska, special fimd
,
District of Columbia
.^
, . 25,043, 973. 00
81,251, 613.00
Department of Agriculture
."
19,715, 535.00
Department of Commerce
,
Department of the Interior:
28,884,447.00
CivU
253,350,000.00
Pensions and Pension Office
33,973,305.00
Indian Service
18,751,056.00
Department of Justice
6,203, 556.00
Department of Labor
Navy Department:
121,446, 892. 00
Pay of the Navy
Provisions, maintenance, freight, fuel, and
42,774,000.00
.transportation
•
25,516,005. 00
<^Maruie Corps
Increase of the Navy, scrapping..of naval ves40,985,000.00
sels, and construction and repair of vessels.,
66,212,128.00
Other items under Navy Department
:
Post Office Department (exclusive of Postal Service)
State Department:
1,124,940.00
Proper
13,933,297. 79
• Foreign intercourse
Treasury Department:
Collecting the revenue
49,729,690.00
Refimds, drawbacks, etc., of revenue
37,484,093. 41
Public buildings, construction
566,750.00
Public buUdings, operating expenses, repairs,
equipment, etc
9,270,070. 00
Other items under Treasury Department
51, 838,258. 87
War Department:
Military activities—
123,752,497. 00
Pay of the Army
Quartermaster Corps, subsistence, sup63,085,764. 00
plies, transportation, etc., ofthe Army.
1 Expenditures for 1923 are being paid from balance of $43,000,000
augmented by premium receipts.
Increase, 1924
estimates over
1923 appropriaations (+), decrease (—).
$14,504,164.95
396,595.00
-$85,252.35
-1-11,255.00
370,000.00
25,000.00
152,200. 00
807,911.00
6,480.00
2,660,306.00
5,932,000.00
150,000.00
955,600. 00
3,922,418.00
1,056,425. 00
5,361,462.00
-88,800.00
-25,000.00
-7,200.00
-F69,384.00
-480.00
-227,566.00
-h495,000.00
-150,000.00
-600.00
-561,255.00
-185,975.00
-846,962.00^
10,000. 00
225,600. 00
350,000.00
-10,000.00
-1-34, 400.00
-10,000.00
791,564.00
3,360,890 00
- 1 3 7 , 564.00
- 1 , 6 5 3 , 660.00
345,000.00
200,000.00
1,000.00
100,459,000.00
+2, 500.00
4-59, 495.74
+ 1, 800.00
+3, 600.00
-1-99, 185.00
-1-355, 000.00
-200, 000.00
+ 1, 000.00
-50,047, 500.00
76,658,
146,409, 188. SO
25, 000.00
80
25,971, 090.
036.00
62,412, 496.20
20;618,
-f 16,353,545. 35
-41,550,000.00
-1-90,000,000.00
-24,658,680.00
-21,909,188.80
-5,000.00
-927,117.80
-1-18,839,577.00
-902, 961. 20
39,607,973.43
254,246,191.67
34,071,052.00
18,631,205. 00
7,490,188.11
-10,723,526.43
-896,191.67
-97,747.00
-1-119,851.00
-1,286,632.11
39,009, 454.65
160,000, 000.00
(0 680.00
121,745, .426.00
-298, 534.00
46,553,615.00
26,346,748.00
-3,779,615.00
-830,743.00
28,500,. 000. 00
75,17.8,476. 25
-fl2,485,000.00
-8,966,348.25
14,600.00
-14,600.00
1,185,033.00
9,910,167.66
-60,093.00
-1-4,023,130.13
50,933,380.00
36,636,700.00
1,102,000.00
-1,203,690.00
-1-847,393.41
-535,250.00
8,932,750. 00
63,022,435. 44
-f 337,320.00
. -11,184,176.57
128,122,581.00
-4,370,084.00
-412,704.67
appropriation made Oct. 6, 1917,
63,498,468.67
124
REPORT ON THE PINANCES.
Estimates of approjpriations for 1924 compared with appropriations for 1923—Continued.
Department, etc.
War Department—Continued.
Military activities—Continued.
National Guard..
,.
Other military activities
.'"..
Nonmilitary activitiesRivers and harbors
Soldiers' homes
Panama Canal, operation and maintenance
Other nomnUitary activities
Interest on public debt
Sinking fund
Other pubhc debt retirements chargeable against
ordinary receipts
Total, excluding Postal Service payable
from the postal revenues
1923 appropria1924 estimates,
including
including perma- tions,
revised
permanent annual.
nent annual.
$33,992,222. 00
43,453,717. 00
Increase, 1924
estimates over
1923 appropriaations (+), decrease (—).
$25,885,200. 00
53,130,605.28
-l-$8,107,022. OO
-9,676,888. 2S
63,358,261.00
7,116,800.00
4,131,234.00
1,651,236. 92
950,000,000,00 21,100,000,000.00
283,838,800.00
298,872,000 00
-16,758,730.00
• -1,152,300 00
-j-2,757,871. 2S
-fl,128,727.0a
-150,000.000.00
-1-15,033,200 00
46,250,000. 00
-25,000. 00
3,274,238,690.83
-195,298,359.14
46,599,531. 00
5,964, 500. 00
6, 889,105. 28
2,779,984.00
46,225,000 00
i, 078,940,331. i
2 Includes $125,000,000 of accumiUated interest on war-saving certificates, series of 1918, to be paid during
the fiscal year 1923 though properly allocable to the full five years of their hfe and not simply to the fiscal
year 1923. .
Attention is respectfully invited to the attached abstracts of the
annual reports of the various bureaus and divisions of the Treasury
Department and to the tables and exhibits accompanying the report
on the finances.
A. W. MELLON,
Secretary of the Treasury.
To the SPEAKER OF THE HOUSE OP REPRESENTATIVES.
EXHIBITS ACCOMPANYIiNG THE REPORT ON THE FINANCES.
125
EXHIBITS.
EXHIBIT
1.
S T A T E M E N T OF T H E P U B L I C D E B T OF T H E U N I T E D STATES, J U N E 30, 1922.
DetaU.
INTEREST-BEARING
A m o u n t issued.
A m o u n t retired.
Amount outstanding.'
DEBT.
Bonds:
2 p e r c e n t consols of 1930
4 p e r c e n t loan of 1925
2 p e r c e n t P a n a m a s of 1916-1936
2 p e r c e n t P a n a m a s of 1918-1938
3 p e r c e n t P a n a m a s of 1 9 6 1 —
3 p e r c e n t conversion b o n d s of 1946-47
2^ p e r c e n t p o s t a l savings b o n d s (first to t w e n t y - s e c o n d series).
F i r s t L i b e r t y loan
•.
3^ p e r cent b o n d s of 1932-19.47
C o n v e r t e d 4 p e r cent b o n d s of 1932-1947
C o n v e r t e d 4^ p e r cent b o n d s of 1932-1947
Second converted 4^ p e r cent b o n d s of 1932-1947
$646,250,150. 00
162,315,400.00
54,631,980.00
30,000,000. 00
50,000,000.00
28,894,500.00
11,830,440.00
$46,526,100.00
43,825,500.00
5,677,800.00
4,052,600.00
1,989,455,550.00
37,611,800.00
$599,724,050.00
118,489,900.00
48,954,180.00
25,947,400.00
50,000,000.00
28,894,500.^00
11,830,440.00
O
$883,840,470.00
O
$1,410,002,050.00
12,523,500. 00
525,826,050.00
3,492,150.00
H
1,951,843,750.00
Q
Second L i b e r t y loan
4 p e r cent b o n d s of 1927-1942
" C o n v e r t e d 4^ p e r cent b o n d s of 1927-1942
3,807,865,000.00
497,267,950.00
54,420,800. 00
3,256,176,250. 00
3,310,597,050.00
T h i r d L i b e r t y loan—
4 i p e r cent b o n d s of 1928
F o u r t h L i b e r t y loan—
4 i p e r cent b o n d s of 1933-1938
4,175,650,050.00
701,862,050.00"
3,473,788,000.00
6,964,581,100.00
619,197,350. 00
6,345,383,750.00
4,495,373,000.00
12,504,189,600.00
>
Q
15,081,612,550.00
Notes:
V i c t o r y L i b e r t y loan
4f p e r cent notes of 1922-23
Treasury n o t e s Series A-1924
Series B-1924
Series A-1925
Series A-1926
Series B-1925
1,991,183,400.00
311,191,600.00
390,706,100. 00
601,599,500 00
617,769,700.00
.325,329,450.-00
311,191,600.00
. 390,706,100.00
601,599,500.00
617,769,700.00
325,329,450.00
2,246,596,350.00
Certificates of i n d e b t e d n e s s :
Series
Series
Series
Series
TS-1922
TS2-1922....°.:.
TD-1922..:....
TM-1923
182,871,000.00
179,691,500.00
243,544,000.00
266,250,000.00
182, S71,000. 00
179,691,500.00
243, .544,000.00
266,250,000.00
Series TD2-1922.
Series TJ-1923...
200,000,000.00
273,000,000.00
200,000,000.00
273,000,000. 00
LoanSeries B-1922.
Series D-1922.
259,471,500.00
150,000,000.00
259,431,000.00
150,000,000.00
Pittman Act
259,375,000.00
185,375,000. 00
1,022, 105,582.16
102, 642,803. 39
43, 668,495.58
22, 079,899. 23
1, 942,809.33
59, 542,732. 58
9, 019,270. 75
506,233,735.13
48,244,869.20
18,629,26L37
1,345,356,500.00
74,000,000.00
409,431,000.00
74,000,000.00
1,828,787,500.00
Treasury (war) savings securities: 2
Treasury (war) savings certificates. Series 1918
Treasury (war) savings certificates. Series 1919
Treasury (war) savings certificates, Series 1920
Treasury (war) savings certificates, Series 1921
Treasury sa^dngs certificates, Series 1921, issue of Dec. 15, 1921.
• Treasury savings certificates. Series 1922, issue of Dec. 15,1921.
Thrift and Treasury savings stamps, unclassified sales, etc
515 871,847.03
54; 397,934.19
25, 039,234. 21
15,283,549.61
1,801,469.33
58, 226,872. 58
394,410. 50
6,796,349.62
141,340. 00
1,315,860.00
624,860. 25
Total interest-bearing debt outstanding
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 HAS CEASED—PAYABLE
PRESENTATION.'
in
079,015,317.45
O
22,711,035,587.45
w
ON
H
Funded loan of 1891, continued at 2 per cent, called for redemption May IS,
1900, interest ceased Aug. 18, 1900
Funded loan of 1S91, 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 other items of debt
matured at various dates subsequent to Jan. 1, 1861
Certificates of iifdebtedness, at various interest rates, matured
Loan of 1908-1918
Victory Liberty loan 3i per cent nctes of 1922-23
1,000.00
19, SOO. 00
13,050.00
374,600.00
10,270.00
O
893, 720.26
9,003,000.00
326,010.00
14,609,400.00
W
>
in
Total matured debt outstanding on which interest has ceased..,
25,250, SSO. 26
D E B T B E A R I N G NO I N T E R E S T — P A Y A B L E ON P R E S E N T A T I O N .
Obhgations required to be reissued when redeemed:
United States notes
Less gold reserve
Obhgations that wiU be retired on presentation:
Old demand notes
.^
National bank notes and Federal reserve bank notes Sssumed by the
United States on deposit of lawful money for their retirement..,
Fractional currency '.
Total debt bearing no interest outstanding..
Total gross debt s
^
See p . 128 for footnotes,
346,681,016.00
152,979,025.63
193,701,990.37
53,012.50
32,039,351.50
1,998,368.50
227,792,722.87
22,964,079,190.58
d
Statement of the public debt of the United State's, June SO, 1922—Continued.
oo
•
Detail.
Amount issued.
Amount retired.
Amount outstanding.
1
DEBT BEARING NO INTEREST—PAYABLE ON PRESENTATION—Continued.
Matured interest obhgations, etc.:
Matured interest obhgations outstanding
Discount accrued (partly estimated) on war savings securities, series of
19184
Discount accrued (partly estimated) on war savings securities, series of
19194
Discount accrued (partly estimated) on war savings securities, series of
1920 4
.
Treasury warrants and checks outstanding
Disbursing officers' checks outstanding
$82,145,120. 55
117,113,167. 32
S, 967,146.18
2,806,074.49
1,965,2.57. 07
" 83,467,094.88
P:j
$298,463,860.49
23,260,543,0.51.07
Balance held by the Treasury ofthe United States as per daily Treasury statement for June 30, 1922
Deduct:
Net excess of disbursements over receipts in June reports subsequently
received
Net debt, including matured interest obhgations, etc., June 30, 1922 &
272,105,512.63
w
o
7,978,576. 78
264,126,935.85
22,998,416,115.22
1 Includes $14,609;400 Victory 3f per cent notes shown under "Matured debt on which interest has ceased."
2 Amounts issued of the series of 1918,1919, and 1920 are on basis of reports of sales; amount issued of the series of 1921 (except new issue) is on basis of cash receipts by Treasurer,
United States, and includes receipts from sales of thrift stamps and Treasury savings stamps. Amounts issued of the series of 1921 and 1922, new issue, are on basis of cash receipts
by Treasurer, United States, plus accrued discount, and include receipts from sales of Treasury savings stamps; the amount outstanding being the net redemption value.
3 The total gross debt June 30, 1922, on the basis of daily Treasury statements was $22,963,381,708.31 and the net amount of public debt redemptions and receipts in transit, etc.,
was $697,482.27.
4 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.
5 No deduction is made on account of obligations of foreign governments or other investments.
NOTE.—Issues cf soldiers' and sailors' civil relief bonds not included in the above. Total issue to June 30, 1922, was $195,500, of which$144,600 has been retired.
O
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Detail of outstandmg interest-bearing issues as shown above, June 30, 1922.
M
Title.
Authorizing act.
Rate of
interest.
Date of issue.
When redeemable or payable.
Interest payable.
CO
Pre-war loans:
Consols of 1930.,
Loan of 1925....
Panama Canal loan, 1936.
Mar.14,1900
Jan. 14, 1875
/June 28, 1902, and Dec. 21,
\ 1905.
Panama Canal loan, 1938.
do
:.
Panama Canal loan, 1961.
Aug. 5, 1909, Feb. 4, 1910,
and Mar. 2,1911.
Conversion bonds
Dec. 23, 1913
Postal sa^dngs bonds (first to twenty-second ^June25, 1910
series).
War loans:
First Liberty l o a n Apr.24,'1917
Sj per cent bonds of 1932-1947.
Converted 4 per cent bonds of 1932-1947.. Apr. 24,1917, Sept. 24,1917.
Converted 4^ per cent bonds of 1932-1947. Apr. 24, 1917, Sept. 24, 1917,
as amended.
Second converted 4\ per cent bonds of
do
1932-1947.
Second Liberty loan—
4 per cent bonds of 1927-1942
"
, Sept. 24,1917
Converted 4^ per cent bonds of 1927-1942. Sept. 24,1917, as amended.,
Third Liberty loan—'
4i per cent bonds of 1928
do
Fourth Liberty loan—
4i per cent bonds of 1933-1938.
.do..
Victory Liberty loan—.
4f per cent Victory notes of 1922-23.
Treasury notes:
Series A-1924...'.
Series B-1924
Series A-1925.Series A-1926.'.
Series B-1925
Certificates of indebtedness:
Series TS-1922
. Series TS 2-1922
Series TD-1922
;
-do..
Per cent.
2 Apr. 1,1900.,
4
Feb. 1,1895.,
Aug. 1,1906.
\
^
^
2
Nov. 1,1908.
June 1,1911.
J a n . l , 1916-17..
/Jan. 1, July
\ 1911-1922.
June 15, 1917.
Nov. 15, 1917-.
May 9, 1918...
Oct. 24,1918..
4^
Payable after Apr. 1,1930
Payable after, Feb. 1,19125
/Redeemable after Aug. 1,1916..
\Payable Aug. 1,1936
/Redeemable after Nov. 1,1918.,
iPayableNov. 1,1938
Payable June 1,1961
Jan. 1, Apr. 1, July 1, Oct. 1.
Feb 1, May 1, Aug. 1, Nov.l.
I" Do.
} Do.
Mar. 1, June 1, Sept. 1, Dec. 1.
C/2
Payable 30 years from date of issue. Jan. 1, Apr. 1, July 1, Oct. 1.
Redeemable 1 year from date of issue I Jan. 1, July 1.
Payable 20 years from date of issue.,
/Redeemable on or after June 15,1932 June 15, Dec. 15.
\Payable June 15,1947.
• Do. .
do.
Do.
:do..
O
Do.
.do..
Nov. 15, 1917.
May 9,1918...
/Redeemable on or afterNov. 15,-1927, JMay 15, Nov. 15.
\Payable Nov. 15,1942
Do.
..do
.....do
Payable Sept. 15,1928.
Oct. 24, 1918..
/Redeemable on or after Oct. 15,1933,
JApr. 15, Oct. 15.
\Payable Oct. 15, 1938
May 20, 1919..
/Redeemable June 15, or Dec. 15,1922 IJune 15, Dec. 15.
\Payable May 20,1923
,
,
Mar. 15, Sept. 15.
.do.,
.do.,
.do.,
.do.,
.do..
June 15,1921.
5* Sept. 15, 1921.,
4! Feb. 1,1922..
4f Mar. 15, 1922..
• 4f June 15,1922.
June 15,1924.
Sept. 15,1924.
Mar. 15, 1925..
Mar. 15,1926.,
Dec. 15,1925.,
Do.
Mar. 15, Sept. 15.
Do.
Do.
June 15, Dec. 15.
...do..
...do..
-,-do-
Sept. 15,1921.
Nov. 1,1921..
Dec. 15, 1921..
Sept. 15, 1922..
do
...:
Dec. 15,1922..
Mar. 15, Sept. 15.
May 1, Sept. 15.
June 15, Dec. 15.
>
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cl
%
bO
Detail of outstanding interest-bearing issues as shown above, June SO, 1922—Continued.
CO
O
Authorizing act.
Title.
Certificates of indebtedness—Continued.
Tax—Continued.
Series TM-1923
Series TD 2-1922...
Series TJ-1923
Loan—
Series B-1922
Series D-1922
.
Pittman A c t . . :
Sept. 24, 1917, as amended.,
do
. .do
. .
...do
do
Sept. 24, 1917, as amended,
and Apr. 23, 1918.
Sept. 24, 1917, as amended...
Treasury savings certificates, new issue
Soldiers' and sailors' civil relief bonds . .
.....do
Mar 8, 1918...
Rate of
interest.
Per cent
H
Date of issue!
Mar. 15, 1922
J u n e l , 1922
June 15, 1922
Aug. 1,1921
Apr. 15, 1922
Various dates,
1918-19.
fJan. 2, 1918
Jjan.
2,1919
•14
Uan. 2, 1920
[Jan. 2,1921
2 4.A
Various dates from
Dec. 15, 1921.
3-i J u l y l , 1918
bh
f
When redeemable or payable.
Mar. 15, 1923
Dec 15, 1922...
Jime 15, 1923
Interest payable.
Mar. 15, Sept. 15.
At maturity.
June 15, Dec. 15.
Aug. 1, 1922
Feb. l,.Aug. 1.
Oct 16, 1922..
At maturity.
One year from date of issue or re- Jan. 1, July 1.
newal.
Payable Jan. 1,1923
Payable Jan. 1,1924
Payable Jan. 1,1925
I.At maturity.
Payable Jan. 1, 1926
Five years from date of issue
Mature July 1, 1928; may be called
1 5''ear after termination of war.
O
Jan. 1, July 1.
1 If held to maturity, war savings securities yield interest at rate of 4 per cent per annum compounded-.quarterly for the average period to m!iturity on the average issue price.
Thrift stamps and Treasury sa\dngs stamps do not bear interest.
;.. ' .
"
2 Treasury sa\dngs certificates, new issue, yield interest at 4\ per cent per annum, compounded semianmmll5'','if held to maturity. The certificatesmature five years from date
of issue, but may be redeemed before maturity to jdeld about 3J per cent compounded semiannually.
^ "
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SECRETARY OF THE TKEASURY.
EXHIBIT
PRELIMINARY
131
2.
S T A T E M E N T OF T H E P U B L I C D E B T OCTOBER 3 1 ,
1922.
[On the basis of dailyTreasury statements.]
Bonds:
Consols of 1930.
Loan of 1925
:...
.
Panama's of 1916-1936
Panama's of 1918-1938.
Panama's of 1961
Conversion Bonds
Postal Savings, Bonds.
:
First Liberty Loan
Second Liberty L o a n : . . . . . .
Third Liberty L o a n . . :
Fourth Liberty Loan
-.
Treasury bondsof 1947-1952.
$599,.724, 050. 00
118,489,900.00
48, 954,180. 00
25, 947, 400. 00
50,000,000.00
28, 894, 500. 00
11,851,000.00
. .
_
:
$883,861,030.00
] , 948, 790, 350. 00
' . . 3; 284, 350,100. 00
3,459, 496, 850. 00
:
. . . 6, 343,039,100. 00
:
15, 035, 676, 400. 00
,...:....
742, 496, 494. 64
Totalbonds
Notes:
Victory l i b e r t y Loan—4f per cent— •
„ Called for redemption D e c 15, 1922...
. Maturing May 20, 1923...:
16, 662, 033, 924. 64
753,175,850.00'
905, 671,100. 00
1,658,846,950.00
Treasury notes—
Series A-1924.
Series B-1924:
Series A-1925
Series B-1925..
.Series A-1926
Series B-1926
Treasury Certificates:
Tax.....'
Pittman Act.
.
;.
'.
War Savings Securities (net cash receipts)
Treasury Savings Securities (net redemption
v^lue of certificates outstanding)
....
311.391, 600. 00
390, 706,100. 00
601, 599,500. 00
335,128,200.00'
617, 769, 700. 00
486,938,900.00
:
991,257,500.00
38, 000,000.00
:
609, 286, 908. 90
2,743,334,000.00
1, 029, 257, 500. 00
114, 068, 064.19
723,354,973.09
Total interest-bearing d e b t .
Debt on which interest has ceased
Noninterest-bearing debt.
Total gross d e b t . . . . : . . . . : . . :
22, 816, 827, 347. 73
23, 317,990. 26
237, 638,597. 87
23, 077, 783, 935. 86
EXHIBIT
3.
CO
LIBERTY BONDS, VICTORY NOTES, TREASURY NOTES, AND CERTIFICATES OF INDEBTEDNESS OUTSTANDING
(INCLUDING ISSUABLE BUT UNDELIVERED SECURITIES) BY DENOMINATIONS, JUNE 30, 1922.
First Liberty loan:
First 3i's—
Coupon b o n d s .
Registered b o n d s
F i r s t 4^s—
Coupon bonds
Registered b d n d s
First 4i's—
Coupon b o n d s .
Registered b o n d s
F i r s t second 4 i ' s —
Coupon b o n d s
Registered bonds
$500.
$1,000.
$5,000.
$10,000.
$50,000.
$100,000.
Total.
•S38,566,200
3,111,800
848,612,500
3,482,500
$950,520,000
17,550,000
$22,710,000
$91,460,000
$63,250;000
$140,500,000
$1,067,937,750
342,064,300
, 2,038,188
71,991
1,623,700
215,200
" 1,280,100
. 2,312,500
420,000
1,819,000
722,000
2,591,000
70,000
530,000
70,000
770,000
100,000
4,185,800
8,337,700
46,858
33,843
34,517,900
1,661,550
62,901,900
10,602,700
57,042,000
16,933,000
155,571,000
38,911,000
7,850,000
397,017,800
128,808,250
1,600,804
2l7y600
144,800
25,350
227,400
106,600
271,500
126,500
1,349,000
311,000
210,000
130,000
410,000
180,000
2,612,700
879,450
7,145
2,181
68,427,550
119,109,200
128,707,000 1,167,525,000
70,645,000
169,030,000
71,200,000
157,200,000'
1,951,843,750
• 4,018,610
1,440,000
3,480,000
1,800,000
400,000
22,730,300
31,690,500
200,264
128,018
819,270,000
124.300,000
52,500,000
196,500,000
2,535,567,900
670,608,350
5,935,311
710,819
337,265,000 - 948,490,000
54,300,000
196,900,000
3,310,597,050
6,974,412
$30,239,050
•
Total
number of
pieces.
8100.
$50.
•
.
Total
.
30,735,000 •
16,260,000
56,250,000
19,890,000
16,700,000
•
Second L i b e r t y loan:
Second 4's—
Coupon bonds
Registered b o n d s
Second 4 i ' s — '
Coupon b o n d s
Registered b o n d s
6,744,900
2,039,700
5,472,900
6,636,300
2,064,500
5,462,500
6,203,000
8,967,000
117,298,400
6,456,450
207,431,500
30,972,400
203,957,000
51,061,500
972,081,000
140,793,000
Total
132,539,450
250^ 513,100
262,545,500 1,128,044,000
209,859,050
14,921,950
•317,550/200
63,221,300
•'257,211,500 1,000,103,000
167,093,000.
78,198,000
215,995,000
60,175,000
750,730,000
99,080,000
43,050,000
196;100,000
2,751,448,750
722,339,250
9,005,481
1,278,916
224,781,000
380,771,500
335,409,500 1,167,196,000
276,170,000
849,810,000
43,550,000
196,100,000
3,473,788,000
10,284,397
238,111, 850
21,167,300
426,310,900
97,187,700
360,123,500 1,654,531,000 . 497,760,000 1,663,710,000
294,081,. 000
123,775,000
115,665,500
227,610,000
87,350,000
538,000,000
4,840,547,250
1,504)'836,500
11,666,047
1,975,278
259,279,150
523,498,600
475,789,000 1,948,612,000
87,350,000
538,000,000
6; 345,383,750
13,641,325
T h i r d L i b e r t y loan, t h i r d 4 i ' s :
Coupon b o n d s . . .
Registered b o n d s
Total
F o u r t h L i b e r t y l o a n , f o u r t h 4^'s:
Coupon b o n d s
Registered bonds
Total
'
805,000
2,905,000
265,530,000
68,025,000
.
621,535,:006 1,891,320,000
•
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Victory Liberty loan:
Victory 4 f s —
Coupon notes
Registered n o t e s
Victory 3t's-^
Coupon notes
Registered notes
163,692,450
7,024,450
-.
Total
Treasury notes:
A-1924, 5 | p e r cent
B-1924, 5^ p e r cent . .
A-1925, 4^ p e r c e n t
B-1925, 4'i p e r cent
A-1926, 4 | p e r cent
Total
Certificates of i n d e b t e d n e s s : •
L o a n issues
T a x issues
. . .
P i t t m a n 2 p e r cent
• Total.
Grand t o t a l . .
269,929,800
49,508,700*
203,073,000
73,971,000
608,198,000
178,481,000
105,835,.000
45,570,000
, 211,100,000
38,450,000 '
13,850,000
. 22,500,000
1,561,828,250
429,355,150
7,029,768
975,460
50,000
3,600,000
1 9,533,350
15,076,050
7,930
598
26,100,000 2 2,005,792,800
8,013,756
. 57,750
1,350
144,100
8,200
277,500
. 11,500
4,119,000
285,000
1,665,000
320,000
170,776,000
319,590,800
277,333,000
791,083,000
153,390,000
253,620,000
1,995,600
1,214,100
1,272,000
1,838,200
3,936,700
11,450,000
9,240,000
8,499,500
4,135,500
7,845,000
55,196,000
46,882,000
51,198,000
27,962,000
72,148,000
48,550,000
53,060,000
68,490,000
20,125,000
42,930,000
85,700,000
131,210,000
182,540,000
79,870,000
171,810,000
108,300,000
149,100,000
289,600,000
165,100,000
319,100,000
311,191,600
390,705,100
601,599,500
3 32b, 329,450
617,769,700
10,256,600
41,170,000
253,386,000
233,155,000
651,130,000
1,031,200,000
7,693,000
22,872,000
33,879,000
107,507,000
52,620,000
171,065,000
130,840,000
406,030,000
30,565,000
141,386,000
223,685,000
536,870,000
3,270,000
800,000.
855,803,150 1,603,739,800 1,551,519,000 6,597,232,000 1,915,845,000 5,300,270,000
13,900,000
.
117,415
102,727
115,765
68,278
156,163
in •
3 2,246^ 596,350
560,348
o
185,600,000
644,900,000
4 410,632,000
51,353,158,500
74,000,000
. 74,729
234,516
830,500,000
6 1,837,790,500
309,245
270,300,000 2,976,000,000 7 21,171,792,200
43,802,093
•'""
.
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1 Matured obligations.
8 Includes $14,609,400 matured Victory notes.
*
• *
•
* Includes $26,298,750 Treasury notes issuable against completed payments, the denominations of which are unavailable.
< Includes $1,201,000 matured certificates of indebtedness.
» Includes $7,802,000 matured certificates of indebtedness, also $784,500 certificates of indebtedness undelivered, the denominations of \^hich are unavailable.
6 Includes, $74,000,000 Pittman certificates not shown by denominations; $784,500 undelivered certificates of indebtedness the denominations of which are unavailable and
$9,003,000 matured certificates of indebtedness.
T See notes (»), (s), and (6) above.
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EXHIBIT
4.
CO
REGISTERED LIBERTY BONDS AND VICTORY NOTES OUTSTANDING AND INTEREST PAYABLE, FISCAL YEAR
:^NDED JUNE 30, 1922.
First 3^'s.
O u t s t a n d i n g J u n e 30,1921.
N e t increase i n registration
N e t decrease i n registration
O u t s t a n d i n g J u n e 30, 1922
I n t e r e s t p a y a b l e d u r i n g fiscal y e a r . .
N u m b e r of a c c o u n t s :
J u n e 30,, 1921
J u n e 3 0 , 1 9 2 2 . . ...•
,.....
N e t decrease i n n u m b e r of a c c o u n t s .
N u m b e r of checks d r a w n
F i r s t 4's.
$321,215,000.00
$20,849,300.00
$10,154,100.00
$342,064,300.00
$11,498,072.25
$1,816,400.00
$8,337,700.00
$370,682.00
$128,808,250.00
$5,403,677.85
32,496
29,330
3,166
61,493
27,384
22,482
4,902
49,297
.129,564
123,094
6,470.
252,049
•
T h i r d 4i^s.
$123,470,050.00
$5,338,200.00
F o u r t h 4i's.
$801,851,250.00
O u t s t a n d i n g June'30, 1 9 2 1 . :
N e t increase i n r e g i s t r a t i o n .
N e t decrease i n r e g i s t r a t i o n .
O u t s t a n d i n g J u n e 30, 1922..
1,444,906,650.00
$59,929,850.00
$79,512,000.00
$722,339,250.00 $1,504,836,500.00
$33,448,826.71
$62,644,846.96
I n t e r e s t p a y a b l e d u r i n g fiscal y e a r . . .
N u m b e r of a c c o u n t s :
June 30,1921....
J u n e 30, 1922.
N e t decrease i n n u m b e r of a c c o u n t s .
N u m b e r of checks d r a w n
First 4i's.
842,171
755,742
86,429
1,632,460
1 Matured.
1,218,630
1,080,673
137,957
2,332,172
F i r s t 2d 4 f s:
Second 4's.
Second 4^'s.
$1,032,550.00
$39,996,150.00
$669,498,950.00
$1,109,400.00
$153,100.00
$879,450.00
$39,488.32
$8,305,650.00
$31,690,500.00
$1,545,187.00
$670,608,350.00
$28,651,124.83
1,^529
1,361
168
2,872
119,046
90,204
28,842
209,929
386,280
370,695
15,585
761,121
V i c t o r y 4^'s.
V i c t o r y 3tps.
$630,933,950.00
$74,695,650.00
$201,578,800.00
$429,355,150.00
$25,134,658.01
$69,619,600.00
1 $5,076,050.00
2$1,200,070.62
627,053
537,694
89,359
1,159,402
. 1,492
497
.995
2 1,387
» Covers b u t one d i v i d e n d — D e c . 15, 1921.
O
Total..
$4,117,754,300.00
$87,226,750.00
$360,985; 550.00
$3,843,995,500.00
$169,93.6,634.55
3,385,645
3;011,772
373,873
6,462,182
'A
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EXHIBIT
5.
ISSUES AND RETIREMENTS OF PkE-WAR LOANS, UNMATURED, FISCAL YEAR ENDED JUNE 30, 1922.
Consols of 1930.
4 p e r cent loan of 1925.
•
Registered.
O i i t s t a n d i n g J u n o .30, 1921.
T o t a l issued
R e t i r e d on a c c o u n t of:
E x c h a n g e for registered b o n d s
E x c h a n g e for m u t i l a t e d b o n d s . . . . .
Transfer of ownership
Claims s e t t l e m e n t s
-
O u t s t a n d i n g J u n e 30, 1922
Total.
Registered.
Coupon.
Total.
Registered.
Coupon.
$598,532,300|$1,191,750 $599,724,050 $108,863,950 $9,625,950 $118,489,900 $48,948,140
I s s u e d on account, of:
E x c h a n g e for coupon b o n d s
E x c h a n g e for m u t i l a t e d b o n d s
Transfer of ownership
Claims s e t t l e m e n t s
Total r e t i r e d . .
Coupon.
2 per cent P a n a m a ' s of
1916-1936.
115,950
115,950
^ 26,962,950
26,962,950
27,078,900
27,078,900
115,950
- 26,962,950
26,962,950
115,950
1,309,800
500
13,154,900
4,500
1,309,800
500
13,154,900
4,500
14,469,700
14,469,700
115,950
1,309,800
26,962,950
0 500
13,154,900
4,500
27,078,900
13,159,900
. . . 598,648,250 1,075,800 599,724,050 110,173,750
1,309,800
1,309,800
500
13,154,900
4,500
14,469,700
2 p e r cent P a n a m a ' s of
1918-1938.
Registered.
Total.
$6,040 S48,954,180 $25,875,720
Coupon.
Total.
$71,680 $25,947,400
40
40
200
200
1,538,420
1,538,420
1,081,940
1,081,940
1,538,460
1,538,450
. 1,082,140
1,082,140
40
1,538,420
200
40
o
200
1,081,940
1,538,420
1,081,940
1,538,460 ^
1; 081,940
200
1,082,140
25,875,920
71,480
25,947,400
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1,538,420
8,316,150 118,489,900 48,948,180
40
6,000 48,954,180
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Issues and retirements of pre-war loans, unmatured, fiscal year ended June 30^1922—Continued.
3 per cent Panama's of 1961.
Registered.
Outstanding June 30,1921
Issued on accoimt of: » *
Cash subscriptions
Exchange for coupon bonds
Exchange for mutilated bonds
" Transfer of ownership.
Claims settlements.-.
Totalissued
Retired on accoimt of:
•
Exchange for registered bonds
Exchange for mutilated bonds
Transfer of ownership
Claims settlements J
Total retired
Outstandmg June 30,1922
Coupon.
Total.
$43,994,400 $6,005,600 $50,000,000
3 per cent conversion bonds.
Registered.
Coupon.
Total.
2h per cent postal savings.
Registered.
Coupon.
Total.
CO
Total pre-war loans.
Registered.
Coupon.
Total.
$8,908,400 $19,986,100 $28,894,500 $11,233,020 $485,220 $11,718,240 $846,355,930 $37,372,340 $883,728,270
92,700
9,000
5,333,100
1,500
92,700
9,000
5,333,100 .
1,500
1,256,000
1,256,000
1,392,200
1,392,200
5,436,300
5,436,300
2,648,200
2,648,200
108,480
80,440
1,000
762,600
5,640
3,720
108,480
112,200
80,440 2,855,130
10,500
1,000
762,600 50,226,110
11,640
5,640
3,720
112,200
2,855,130
10,500
50,226,110
11,640
•958,160
3,720
961,880
53,211,860
3,720
53,215 580
80,440
80,440
1,000
762,600
5,640
10,500
50,226,110
10,640
2,855,130
i,666
2,855,130
10,500
50,226,110
11,640
80,440
849,680
50,247,250
2,856,130
53,103,380
o
o
1,000
92,700
.9,000
5,333,100
1,500
1,392,200
93,700
5,436,300
1,392,200
•44,088,100 5,911,900
50,000,000
9,000
5,333,100
500
5,342,600
92,700
1,256,000
1,256,000
10,164,400 18,730,100
1,256,000
1,392,200
1,000
762,600
5,640
2,648,200
769,240
fej
28,894,500 11,-421,940 408,500 11,830,440 849,320,540 34,519,930 883,840,470
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EXHIBIT
6.
ISSUES AND RETIREMENTS, FIRST LIBERTY LOAN, FISCAL YEAR ENDED JUNE 30, 1922.
First Liberty loan of 1932-1947.
3^'s.
Detail.
Interim
certificates. Registered.
4i's.
4's.
Second converted 4i'Si
Total.
Coupon.
Registered. ^
Coupon.
Registered.
Coupon.
Registered.
Coupon.
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Gross securities outstandirig and issuable
June 30, 1921
Plus permanent bonds on consignment
:
Less securities issuable
Net securities outstanding June 30>
1921.
•
^
$372,050
372,050
$10,154,10,0
$7,828,700
321,215,000
1,088,487,200
)o, 154,100
7,827,050
103,600
59,581,100
300
20,442,000.
59,200
80,082,600
Total
$1,088,487,200
$123,470,050
36,687,900
^28,841,950.
16,200
2,900
65,652,550
104,100
38,770,900
300
59,581,100
28,841,950
16.200
i,200
695,350
278, OOO
1,595,850
750
123,470,050
397,546,800
669,200
4,801,950
14,863,350
1,400
15,250
18,850
1,800
2,700
4,290,900
40,150
2,571,750
19,866,300
1,077,500
4,381,500
i,6oo
. 740,100
1,000
1,200
278,000
1,597,550
750
$397,238,050
$1,032,550
328,400
19,650
1,650
Securities issued during fiscal year upon—
Surrender, interim certificates
Conversion
ExchangeRegistered for coupon..'
Coupon for registered
0 f denominations..
.'
Temporary for permanent.......
Mutilated for perfect
Transfer of ownership
Claims settlements
..
Securities retired during fiscal year:
Account of reissueSurrender, interim certificates...
Conversion. i
ExchangeRegistered for coupon
Coupon for registered.....
Of denominations
Temporary for permanent...
Mutilated for perfect
$321,215,000
9,386,050
$2,459,600 $1,952,257,300
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328,400
23,400
y<
2,100 •
1,032,550
2,457,500
1,952,562,300
103,600
5,471,150
6,750
9,300
1,000
46,931,050
74,456,450
86,815,600
4,444,150
35,900
24,743,600
127,050
74,232,400
21,100
683,000 . 243,128,550
57,300,400
2,722;300'
14,950
10,800
161,750
395,250
126,000
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104,100
5,459,000
10,097,300
2,700
14,863,350
57,300,400
3,050,900
14,950
163,900
10,800
395,250
123,900
49,772,200
74,456,450
86 815 600
4,772,350
35,900
CO.
Issues and retirements, first Liberty loan, fiscal year ended June 30, 1922—Continued.
.CO
00
'
First Liberty loan of 1932-1947.
3^'s. •
Detail.
Interim •
certificates. Registered.
Securities retired during fiscal year—
Continued.
Account of reissue—Continued.
Transfer of ownership
Claims settlements
Total..:
•..
$104,100
Total securities outstanding and
issuable June 30,1922
Total.
Coupon.
Registered.
Coupon.
Registered.
Coupon.
Registered.
Coupon.
$20,442,000
9,100
$53,000
$1,400
15,250
$1,800
$4,290,900
40,700
$6,200
$9,300
1,000
59,222,300
88,492,250
1,835,250
6,260,800
14,431,600
75,235,800
174,200
16,800
79,700
50
242,300
2,150
50
27,850
322,000
62 750
' 750
200
413,550
11,000
$24 743 600
127,050
$529,950
o
246,286,250
60,400
700
100
200
11,000
61,200
300
96,500
244,550
104,100 ^ 59,233,300
88,553,450
1,835,250
6,261,100
14,528,100
75,480,350
174,200
529,950
246,699,800
1,065,586,300 •
8,337,700
1,730,800
2,406,900
48,100
128,808,250
395,117,250
. 1,181,600
718,950
879,450
2,591,650
18,900
2,150
1,945,383,650
• 3,607,400
2,852,700
8,337,700
4,185,800
128,808,250
397,017,800
87.9,450
.2,612,700
1,951,843,750
Total.
Securities outstanding, June 30,1922:
Permanent bonds
Temporary bonds
Issuable
Second converted 4J's.
O
Account of redemptionPurchases through sinking fund.
Received for Federal estate taxes ,
Forfeitures •
Gifts...
...:
Miscellaneous receipts.
Total retirements (for reissue
and redemption)
4i 's.
4's.
267,950
342,064,300
100
2,083,500
267,950
342,064,300
1,067,669,800
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.SECRETARY OF T H E TREASURY.
E X H I B I T 7. .
ISSUES AND RETiREMBNTS, SECOND LIBERTY LOAN, FISCAL
YEAR ENDED JUNE 30, 1922.
Second Liberty loan-of 1927-1942.
4's.
Detail.
.4l's.
Total
Registered.
Gross securities outstanding and
issuable June 30, 1921
$39,996,150
Plus permanent bonds on consignment
Less securities issuable
Net securities outstanding
June 30,1921
$37,874,000
$669,498, 950 ;$2,569,150, 950 $3,316,520,050
12,350
Total securities outstanding
and issuable Juno 30,1922.
669, 498, 950
2, 569,202,300
3,31(3,568,750
2,847,000
20, 668,150
23,515,150
65, 282, 400
Ifi 7F,0
69,280,450
66,722,000
314,957,150
20,517,300
240,100
26,659,700
340,850
413,346,300
522,232,700
66,709,650
313,647,500
72,061,650
66,722,000
314,957,150
66, 709, 650
1,309,650
7,007,300
4,350
8, 450
25,850
92,100
" 7,25Q
5,800
20,633,850
224 750
138,750
12,326,600
96,421,050
4, 021,650
19, 427,050
4,296,350
23,448,700
67,765,300
12,350
1,309,650
7,014,100
4,350
8,450
25,850
92,100
8, 444, 400
7, 250
5,800
26,633,850
210,850
27,774,750
94,615,800
• 650
'
.
650
313,647,500
13, 510,000
221, 500
.
.
•
Total
Securities outstanding June 30,
1922:
Permanent bonds
Temporary bonds
Issuable.
..
.. •
147,950
99,250
3,998,050
Account of redemption—
Purchases through sinking fund
Received for Federal
estate taxes..
Forfeitures
Gifts
Miscellaneousreccipts
Total retirements (for
reissue and redemption)
...
147, 950
96,600
2,650
37,871,350
Coupon.
•
Total
Total
Registered.
39,996,.i50
Securities issued during fiscal year
upon—
Conversion
ExchangeRegistered for coupon
Coupon for registered
Of denominations..
Temporary for permanent
Mutilated for perfect
Transfer of ownership
Claims settlements
Securities retired during fiscalyear:
Account of reissue—
Conversion
:
ExchangeRegistered for coupon.
Coupon for registered.
Of denominations...,
Temporary for permanent ..
Mutilated for perfect..
Transfer of ownership
Claims settlements
• Coupon.
30,050
20,673,300
240,100
26,059,700
340,850
.•^94.258.500
525,103,450
13, 659,200
221, 500
108,300
700
" 109,000
587,550
5,089,700
49,050
50
87,000
5,677,250
49,700
5, 226,500
5,923,000
695,850
50
87,000
•. 1 . ..
8,444,400
27,77y,400
31,690, 500
12, .518,7.50
9,903,800
307,750
31,690,500
22,730,300
95,311,650 1
399,495,000
531,026,450
670,608,350
2, 577,608,500
5,445,100
2,514,300
3,292,426,100
15,348,900
2,822,050
670,608,350
2,585,567,900
3,310,597,050
E X H I B I T 8.
•
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ISSUES AND RETIREMENTS, THIRD AND FOURTH LIBERTY LOANS, FISCAL YEAR ENDED JUNE 30, 1922.
Third Liberty loan of 1928.
Fourth Liberty loan of 1933-1938.
Detail.
Registered.
Gross securities outstanding and issuable June 30, 1921.,
Less securities issuable
.
.^..,
. Plus permanent bonds on consignment
.*..,
Net securities outstanding June 30,1921.
Securities issued during fiscal year upon—
ExchangeRegistered for coupon
Coupon for registered
Of denominations
'.
Temporary for permanent.'.
.•
Mutilated for perfect...
• Transfer of ownership
Claims settlements
801,851,250
,.,
,
TotalSecurities retired during fiscal year:
Account of r e i s s u e ExchangeRegistered for c o u p o n . . . . . .
Coupon for registered
,
Of denominations
Temporary for permanent..
Mutilated for perfect...
Transfer of ownership
Claims settlements
Total.
Account of r e d e m p t i o n Purchased t h r o u g h Sinking fund
Proceeds of repayments of loans to foreign governments.
Franchise tax receipts
Received for Federal estate taxes
Forfeitures
$801,851,250
Coupon.
Total.
Registered.
Coupon.
$2,809,704,000
$3,611,555,250
$1,444,906^650
$4,909,938,850
1,367,800
$6,354,845,500
1,367,800
67,250
67,250
2,809,771,250
3,611,622,500
4,908,571,050
6,353/477,700
106,070,050
114,027,200
41,250
106,070,050
71,035,100
387,596,150
38,959,400
486,600
19,117,400
474,050
335,000
114,027,200
181,203,650
550,923,050
183,151,300
. 225,800
43,716,000
1,034,450
533,123,450
623,738,750
848,595,050
1,074,281,450
71,035,100
30,000
19,117,400
432,800
90,615,300
387,596,150
38, .959,400
456,600
1,444,906,650
181,203,650
67,300
43,716,000
699,450
225,686,400
550,923,050
183,151,300
158,500
Total.
W
fej
hj
o
H
O
fej
M
>
o
120,192,650
53,900
110,103,950
71,035,100
387,597,150
39,037,950
486,600
19,117,400
474,050
324,050
120,192,650
181,203,650
550,944,550
181,813,250
225,800
43,716,000
1,034,450
129,671,500
498,180,700
627,852,200
164,686,350
914,444,000
1,079,130,350
1,973,700
38,123,000
15,234,800
.26,714,900
50,885,000
4,470,000
6,650
17,208,500
64,837,900
50,885,000
4,829,100
6,650
240,200
450
240,650
829,600
8,372,550
18,250
"9,202,150
18,250
110,103,950
30,000
19,117,400
'420,150
359,100
71,035,100
387,597,150
39,037,950
456,600
67,300
43,716,000
710,400
181,203,650
550,944,550
181,813,250
158,500
in
Gilts.
Miscellaneous receints.
Total
50
50
".
Total retirements (for reissue and redemption) '.
Securities outstanding Jime 30,1922:
Permanent bonds
..i
1
Temporary bonds
Issuable June 30 1922
......
....'.
Total securities outstandihg and issuable June 30,1922.
....
400
100
200
50G
200
40,455,800
97,311,450
50
50.
137,767,250
1,070,200
8,391,550
9,461,750
170,127,300
595,492,150
765,619,450
16.5,756,550
922,835,550
1,088; 592,100
722,339,^250
2,719,956,100
27,446,450
4,046,200'
3,442,295,350
27,446,450
4,046,200
1,504,836,500
4,779,735,550
54,595,000
6,216,700
6.284,572,050
54,595,000
6,216,700
722,339,250
2,751,448,750
3,473,788,000
1,504,836,500
4,840,547,250
6,345,383,750
...».
in
fej
•o
pi
K|
O
fej
fej
in
d
Pi
Kl
142
EEPORX O::^ THE FIXA^STCES.
EXHIBIT
9.
ISSUES AND RETIREMENTS, VICTORY LIBERTY LOAN, FISCAL
YEAR ENDED JUNE 30, 1922.
Victory L i b e r t y loan of, 1922-^23.
Detail.
3rs. ;
4^'s.
Total.
Registered.
Coupon.
Registered.
Coupon.
Gross sectirities o u t s t a n d i n g a a d
issuable J u n e 30, 1921. .
. . . . . $630,933,950 $2,641,908,400 $74,695,650 $566,232,350 $3,913,770,350
71,200
71,200
N e t • securities
J u n e 30, 1921
outstanding
630,933,950
2.641.837.200
74,695,650
1,747,5.50
' 1,300
210,281,300
56,800
566,2^2,350
3,913,699,150
Securities issued d u r i n g fiscal year
upon—
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
Mutilated for perfect
:...
Claims s e t t l e m e n t s
Total
19,117,500
^ 1,300,000
158,197,750
V 32,099,650
.. 530,547,000
. 75,800
14,918,'9.'i0
1,843,000
3,623,950
56,441,600
968,708,300
4,833,550
207,124,100
230,956, 250
139,080,250
2,234,650
29,865,000
....i...
38,550.
13,586,750
461,350
• 45,699,200
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 171,800
Conversion
ExchangeRegistered for c o u p o n . . 144,421,550
Coupon for registered
M u t i l a t e d for perfect
Transfer of ownership
Claims 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 :
Purchased t h r o u g h Sinking fund
B o n d p u r c h a s e fund
Franchise t a x receipts..
Proceeds of T r e a s u r y notes .
• 17,082,300
300
1,332,200
81,650
862,943,550
18,826,800
19,117,500
29,865,000
513,464,700
36,950
163,539,050
32,099,650
530,547,000
75,800
14,918,950
1,843,000
2,234,650
17,082,300
65,700
300
1,332,200
1,300,000
158,695,950
562,259,150
26,583,550
226,441,050
973,979,700
1,489,600
.70,050
211,017,000
112,661,000
8,707,000
6,598,150
744,750
2,500
550
103,650
6,700
47,293,000
17,859,000
" 741,000
10,100
258,310,000
. 130,520,000
9,448,000
8,104„550
814,800
2,500
550
163,6.50
8,047,150
63,670,650
15,304,600
181,873,000
554,099,050
310,024,900
1,490,000
8,729,500
200,139,650
617,769,700
325,329,500
24,825,800
111,245,650
136,071,450
20,337,500
191,460,300
211,797,800
38,550
13,586,750
477,300
Forfeitures
Gifts....
V i c t o r y notes r e d e e m e d - ^
I n exchange for T r e a s u r y
notesSeries A-1925
.
Series A-1926 .
Series B-1925
I n p u r s u a n c e pf call of 3f per
cent n o t e s R e d e m p t i o n s prior t o
J u n e 15, 1922
R e d e m p t i o n s as of J u n e
1,5, 1922..
I n e x c h a n g e for certificates
of i n d e b t e d n e s s Series TD2-1922
Series TJ-1923 .
Received for Federal income a n d profits t a x e s .
513,404,700
36,950
1 1,300
231,027,450
18,941,800-
,216,500
7,790,500
.
216,500
7,790,500
1,354,000
.1,497,100
88,582,050
1,386,034,650
46,660,000
386,699,550
1,907,976,250
Total r e t i r e m e n t s (for reissue aiid r e d e m p t i o n ) . . 247,278,000
1,948,29.3, SOO
73,243,550
013,140,600
2,881,955,950
Securities o u t s t a n d i n g J u n e 30,1922. 429,355,150
Issuable, J u n e 30, 1922
1,556,486,950
5,341,300
5,076,050
9,533,350
2,000,451,500
5,341,300
Total securities o u t s t a n d i n g
a n d issuable, J u n e iO, 1922.. 429,355,150
1,561,828,250
.5,076,050
9,533,350
2,005,792,800
Total . :
> Counter entry; deduct.
143,100
143
.SECRETARY OF T H E TKEASURY.
EXHIBIT
10.
TREASURY NOTES ISSUED, RETIRED, AND OUTSTANDING, FISCAL
YEAR 1922.
Issued and retired on
account of—
Outstanding Issued on
June 30,1921. • subscriptions.
Title.
Treasury notes:
Series A-1924
Series B-1924
Series A-1925
Series B-1925
Series A-1926
:
Total
$311,191,600
•
311,191,600 1,935,404,750
' Includes $2,000 issuable on exchange.
'$390,'706,'ioo"
601,599,500
325,329,450
617,769,700
Denominational
exchange.
Outstanding
Transfer be- June 30,1922.
tween Federal reserve
banks.
$37,320,700
41,176,300
49,552,400
13,566,500
25,185,800
$22,343,700
54,226,600
82,277,500
4,000,000
21,084,500
$311,191,600
390,706,100
601,599,500
1325,329,450
617,769,700
156,801,700
183,932,300 2,246,596,350
144
REPORT ON THE FINANCES.
EXHIBIT
11.
LOAN AND TAX CERTIFICATES OF INDEBTEDNESS ISSUED, RE»
TIRED, AND OUTSTANDING, FISCAL YEAR 1922.
Issued a n d retired on
accoimt of—
Tittle.
Certificates of i n d e b t e d n e s s :
Loanassues—
Matured—
Mar.20,1918
Apr. 10,1918....
Series i V - A
Series I V - B
. Series I V - C . . . .
Series r V - D
Series I V - E . . ' . .
Series V - A
Series V - B .
Series V - F
Series C-1920 . .
Series E-1920 . .
Series F-1920
Series G-1920 . .
Series H - 1 9 2 0 . . .
Series A-1921 .
Series B-1921
Series D-1921
Series E-1921
Series C-1921 . .
Series F-1921
Series G-1921 . .
Series H - 1 9 2 1 . . . .
Series A-1922 .
Series C-1922
Unmatured—
Series B-1922
Series D-1922
Outstanding J u n e 30,
1921.
Issued on
subscriptions.
$500
10,000
500
.2,000
5,500
3,500
1,000
1,500
1,000
.1,000
3,500
4,000
500
26,000
10,000
25,500
34,000
1,143,000
76,000
155,492,500
192,026,500
128,886,500
190,511,500
256,170,000
Retu-ed b y
- redeinp. tions.
Denominational
exchange.
Transfer
between
Federal
reserve
banks.
Outstanding J u n e 30,
1922. .
$500
$10,000
500
2,000
5,500
3,500
•
1,000
1,500
i,6o6
$51,796,000
1,000
3,000
4,000
500
25,000
9,500
25,500
34,000
1,118,500
74,500
155,416,000
191,619,000
128,869,000
1
190,472,500
255,699,000 $8,929,000 ^t 1 .^ to .Vin
51,647,500 4,759,500 8,271,000
24,500
1,500
76,500
407,500
17,500
39,000
471,000
148,500
259,471,500
150,000,000
40,500 32,501,500 56,271,000
13,461,000 58,734,500
259,431,000
150,000,000
T o t a l loan is924,436,000 461,267,500 975,071,500
sues
Tax issuesMatured—
2,000
J a n . 2,1918
26,500
5,000
Aug.20,1918....
27,500
27,500
Series T - 2
8,000
10,000
Series T - 8 . . .
33,500
16,500
Series T-10
3,000
3,000
Series TM3-1920
41,500
37,500
Series T J - 1 9 2 0 . . .
119,000
190,500
Series TD-1920
5,000
1,000
Series TM4-1920
198,000
196,500
Series TM-1921
5)400,000
5,361,000
Series TJ-1921
Series TM2-1921
149,000
133,500
10,000
9,000
Series TM3-1921
193,500
'
189,500
Series TM4-1921
1,605,000
1,604,000
Series TJ2-1921
341,870,000
Series T S - 1 9 2 1 . . 341,969,500
389,557,500
Series TD-1921
389,242,500
193,302,000
Series TS2-1921
193,294,000
287,759,000
Series TM-1922 • .288,501,000
314,184,000
309,482,000
Series TJ-1922
116,891,000 116,801,500
Series TM2-1922
124,572,000 124,262,500
Series TM3-1922
63,550,500
'64,903,000
Series TJ2-1922
Unmatured—
182,871,000
Series TS-1922
• 179,691,500
Series TS2-1922
Series TD-1922
243,544,000
266,250,000
Series TM-1923
• 200,000,000
Series TD2-1922
273,000,000
Series TJ-1923
T o t a l t a x is1,535,409,000,1,651,722,500 1,833,973,000
sues
.59.651.000 134,617,000
500
1,000
500
410,632,000
2,000
21,500
2,000
17,000
8,780,500 8,690,000
14,203,000 34,201,000
14,549,000 8,086,500
8,077,000 8,694,500
6,980,000 16,095,000
14,885,500
30,201,000
28,494,500
22,305,500
"5,380,000
4,244,000
21,258,000
43,848,000
47,118,000
55,596,500
51,783,500
43,212,500
4,000
71,500
4,000
1,500
39,000
15,600
1,000
4,000
1,000
99,500
315,000
8,000
742,000
4,702,000
89,500
309,500
1,352,500
182,871,000
179,691,500
243,544,000
266,250,000
200,000,000
273,000,000
158,100,000 338.583.500 1,353,158,500
G r a n d t o t a l . . . 2,459,845,000 2,112,990,000 2,809,044,500J217,751,000J473,200,500 1,763,790,500
E X H I B I T 12.
ISSUES AND RETIREMENTS OF TREASURY (WAR) SAVINGS SECURITIES, FISCAL YEAR ENDED JUNE 30, 1922.
263-
Series.
•
2
;:!
New issue..
Detail.
1918
to
1919
1920
1921
1921
Thrift a n d
Treasury savings s t a m p s ,
unclassified
sales, e t c .
Total.
$10,647,640.00
$694,105,410.37
a
101,914,177.61
fei
H
1922
in
g
^
Securities o u t s t a n d i n g J u n e 30,19211
$580,175,584.02
A c c r u e d i n t e r e s t liabilities ( a c t u a l and" contingent)
/
95,273,993.11
T o t a l v a l u e of o u t s t a n d i n g securities J i m e
30,1921
.
I s s u e d d u r i n g fi seal y e a r 1922
R e t i r e d d u r i n g fiscal y e a r 1922:
Reimbursements t o agents
securities
Redemptions
for
$28,925,797.06
$11,865,447.91
6,640,184.50
Securities o u t s t a n d i n g J i m e 30, 1922 <
A c c r u e d i n t e r e s t l i a b i h t i e s ( a c t u a l a n d contingent)
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, 1922..
11,865,447.91
10,647,640.00
796,019,587.98
2 4,065.30
1,687,712.29
9,060,172.66
3 $1,942,809.33 3$59,542,732.58 • 2 1^ 571,757.00
70,654,469.74
o
2,352.20
64,298,249.97
462.80
8,088,479.09
14,569. 64
5,559,705.50
251,072.00
5,390,998.96
141,340.00
1,315,860.00
60,245.50
621,227. 00
328,702.14
85,415,860.52
fej
64,300,^602.17
8,088,941.89
5,574,275.14
5,642,070.96
141,340. 00
1,315,860.00
681,472. 50
8b, 744,562.66
H
515,'871,847.03
54,397,934.19,
25,039,234.21
15,283,549.61
3 1,801,469.33
3 58,226,872.58
8.394.410.50
679,015,317.45
U
117,113,167.32
8,967,146.18
2,806,074.49
-(*)
128,886,387.99
in
632,985,014.35
63,365,080.37
27,845,308.70
15,283,549.61
69,131,125.88
J3,134.82
H
d
pi
1,801,469.33
58,226,872.58
8,394,410.50
1 Series 1918 and 1919 were on basis of sales reports; series 1920 and 1921 were on basis of Treasm-er's net cash receipts.
2 Deduct adjustments in sales reports subsequent to June 30,1921.
3 Net redemption value; includes accrued discount, which has been charged by Treasurer as interest payment and credited as a public debt receipt.
* Series 1918,1919^ and 1920 are on basis of sales reports; series 1921,1921 (new issue), and 1922 (new issue) are on basis of Treasurer's net cash receipts.
& Figures not available for computation of accrued discount.
>
28,925,797.06.-
675; 449, .577.13
unsold
Total
)
$62,490,941.38
807,901,705.44
EXHIBIT
13.
LIBERTY BONDS, VICTORY NOTES, TREASURY NOTES, AND CERTIFICATES OF INDEBTEDNESS DELIVERED
AND RETIRED DURING THE FISCAL YEAR 1922 AND OUTSTANDING ON JUNE 30, 1922.
\
June 30,1921.
Loan or series.
Outstanding.
First Liberty loan:
Full-paid interim certificates
•.'.
3^ per cent coupon bonds
3^ per cent registered bonds
Converted 4 per cent coupon bonds
:..
Converted 4 per cent registered bonds
Converted 4^ per cent coupon bonds
,
Converted 4^ per cent registered bonds.Second converted 4J per cent coupon b o n d s . . .
• Second converted 4^ per cent registered bonds.
Second Liberty loan:
4 per cent coupon bonds.
:
4 per cent registered bonds
;.
Converted 4i per cent coupon bonds.. .-.•
Converted 4^ per cent registered bonds
Third Liberty loan:
• 4i per cent coupon bonds
4 | per cent registered bonds—•.
;..
Fourth Liberty loan:
4i per cent coupon bonds
41 per cent registered bonds
.*...
Victory Liberty loan:
4f "per cent coupon notes
.':
4^ per cent registered notes
3 | per cent coupon notes, matured..
3 | per cent registered notes, matured,
tifici ' of indebtedness:
Certificates
Loan issues—
Matured prior to June 30,1921
Matured between July 1,1921, and June 30,1922—
Series C-1921
Series F-1921
Series G~1921
Series H-1921
Series A-1922.
,
Series C-1922
,
$372.050
1,088,487,200
321,215,000
7,827,050
10,154,100
397,546,800
•123,470,050
Unissued securities held by
Federalreserve
banks.i
$1,550
6,780,900
36,313,700
June 30,1922.
Delivered.'
Retired.»
$69,186,500
80,082,600
1,-953,000
18,850
68,600,200
16,324,350
642,900
n , 329,500
$105,650
83,492,700
59,233,300
12,199,950
1,835,250
110,992,200
17,092,300
293,450
175,100
\
Unissued securities held by Outstanding.
Federal reserve
banks.i
$15,375,600
29,756,100
$267,950
1,065,586,300
^ 342,064,300
4,137,700
•8,337,700
396,298,850
128,808,250
2,610,550
879,450
2,457,500
1,032,550
199,544,400
6,106,150
599,700
1,351,500
37,871,350
39,996,150
2,569,202,300
669,498,950
258,203,550
6,177,600
4,935,550
138,750
305,266,050
94,773,300
40,592,250
8,444,400
335,893,100
99,841,500
213,725,200
2,809,771,250
801,851,250
685,193,900
16,851,-450
358,793,700
77,971,300
807,749=950
174,334,750
298,606,350
2,747,402,550
722,339^250
4,908,571,050
1,444,906,650
549,210,350
11,573,050
.535,561,350
221,888,250
85.5,373,050
173,531,450
303,639,150
4,834,330,550
1,504,836,500
2,641,837,200
630,933,950
566,232,350
74,695,650
114,435,150
23,021,250
107,418,600
9,686,450
755,932,450
15,872,350
53,999,150
< 17,036,850
1,8.36,670,300
240,472,400
686,486,650
62,269,200
119,047,550
1,556,486,950
429,355,150
9,533,350
5,076,050
1,308,000
41,000^
9,100,000
99,316,000
191,480,500
224,689,000
161,968,000
225,614,000
308,409,000
99,167,500
76,500
407,500
17,50Q
39.000
471,000
148,500
•64,575,950
• 1,349,000
152,936,000
187,408,500
122,950,500
185,262,500
253,249,000
38,621,000
37,688,000
39,035,000
40,390,500
46,531,000
'i58,"406,'356'
796*ioo"
44,368,050
"si," 630,'ioo'
22,422,550
31,690,500
2,583,053,600
670,608,350
o
o
fei
fei
I—I
a
fei
in.
U n m a t u r e d o n J u n e 30,1922—
Series B-1922
Series D-1922
T a x Issues:
M a t u r e d prior t o J u n e 30,1921
M a t u r e d b e t w e e n J u l y 1,1921, a n d J u n e 30,1922—
Series TS-1921
Series TD-1921
Series T S 2 - 1 9 2 1 . . . .
Series TM-1922
;
.•
Series TJ-1922
Series TM2-1922
Series TM3-1922
Series TJ2-1922
U n m a t u r e d o n J u n e 30,1922—
Series TS-1922
Series TS2-1922
Series TD-1922
Series TM-1923
Series TD2-1922
Series TJ-1923
P i t t m a n Act
Special ( W a r F i n a n c e Corporation)
Special s h o r t t e r m
Treasury notes:
Series A-1924.
Series B-1924
Series A-1925
Series B-1925
Series A-1926
Total
Issuable items on exchange:
Liberty loans
Treasury notes
I s s u a b l e i t e m s o n original s u b s c r i p t i o n s ( d e n o m i n a t i o n s u n a v a i l a b l e ) :
Certificates of i n d e b t e d n e s s
Treasury notes
.• '.
T o t a l issuable
Total
•.
.
7,895,000
339,443,500
385,394,000
187,182,500.
284,961,000
275,751,500
351,287,000
222,038,000
28,541,500
205,000
71,359,500
79,070,500
37,354,500
41,837,500
38,269,500
35,225,500
83,437,000
2,316,000
150,000
8,605,000
16,747,500
172,490,500
174,370,000
112,182,500
376,698,500
429,232,500
225,594,000
328,049,500
370,259,000
172,401,000
174,060,500.
107,599,000
.
..
264,078,500
271,266,500
319,402,500
362,923,000
267,223,000
328,754,000
215,875,000
32,854,450
1,792,100,000
12,277,000
19,089,000 .
11,390,000
500,000
315,000
100,000
141,875,000
32,854,450
1,792,100,000
63,314,500
71,833,000
259,431.000
150,000,000
184,000
975,000
3,231,000
68,930,500
72,486,000
64,468,500
96,173,000
67,278,000
56,068,500
99 500
315' 000
8,000
742,000
4,702,000
89,500
309 500
1,352,500
182,871,000
179,691.500
243,544; 000
266,250,000
199,630,000
272,585,500
74,000,000
298,923,500
91,394,100
30,010,000
503,069,200
739,551,800
479,461,900
815,274,600
47,751,100
34,793,200
13,781,000
90,500
23,665,100
61,384,900
77,569,900
124,171,300
180,342,700
173,839,800
311,191,600
390,706,100
601,599,500
299,028,700
617,769,700
22,079,366,350
2,698,188,300
9,985,291,750
11,242,007,250
2,397,-411,150
5 21,123,428,000
2,698,188,300
9,985,291,750
11,242,007,250
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. 784,500
26,298,750
22,079,366,350
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21,278,950
2,000
"
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6 48,364,200
6 48,364,200
2,349,046,950
21,171,792,200
1 Consignment securities.
2 Includes shipments to Federal reserve banks for stock.
8 Includes unissued stock returned by Federal reserve banks.
* Counter entry: deduct.
6 Includes $9,003,000 on which interest has ceased (certificates of indebtedness). Includes $14,609,400 on which interest has ceased (Victory 3|'s).
6 Deducted from unissued securities held by Federal reserve banks and added to "outstanding," thus reconciling this statement with.the public debt statement.
} ^
148
REPORT ON T H E FINANCES.
EXHIBIT
14.
RETIREMENTS OF PRE-WAR LOANS, MATURED, FISCAL YEAR
ENDED JUNE 30, 1922.
Outstanding
Outstanding
J u n e 30,1921. R e d e e m e d . J u n e 30,1922
Detail.
F u n d e d loan of 1891, c o n t i n u e d a t 2 p e r cent, called for redemp^ tion M a y 18,1900
:..
F u n d e d loan of 1891, m a t u r e d S e p t . 2,1891
Loanfof 1904, m a t u r e d F e b . 2,1904
:
Funrfed loan of 1907, m a t u r e d J u l y 2,1907
R e f u n d i n g certificates, m a t u r e d J u l y 1,1907
O l d d e b t m a t u r e d a t various d a t e s prior to J u l y 1,1891
LoanLof 1908-1918
Total
EXHIBIT
$1,000.00
19,800.00
13,050.00
3S0,800.00
10,350. 00
893,960. 26
376,660.00
$6,200.00
80.00
240.00
50,620.00
$1,000.00
19,800.00
13,050.00
374,600.00
10,270.00
893,720. 26
326,040.00
1,695,620.26
57,140.00
1,638,480.26
15.
ISSUES AND RETIREMENTS OF DEBT BEARING NO INTEREST,
FISCAL YEAR ENDED JUNE 30, 1922.
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
Outstanding
June 30,1921.
Issued.
Retired.
Outstanding
June 30, 1922.
$53,012.50
$53,012.50
193,701,990. 37
$339,348,000.00
$339,348,000.00
193,701,990.37
32,204,594. 00
1,999,310.90
107,086,627.50
107,251,870.00
942.40
32,039,35L50
1,998,368.50
227,958,907.77
446,434,627.50
446,600,812.40
227,792,722.87
EXHIBIT
16.
PUBLIC D E B T O F T H E UNITED STATES—RECAPITULATION OF ISSUES AND
ENDED JUNE 30, 1922.
RETIREMENTS, FISCAL YEAR
Interest-bearing debt.
Detail.
Pre-war
• loans.
Treasury
Certificates
of
(war) savings
securities. indebtedness.
$883,728,270 $694,105,410.37 12,699,330,450
Outstanding June 30,1921
Plus permanent bonds on consign. ment
.
'
Less securities issuable, June 30,1921.
Net securities outstanding, June
30,1921
883,728,270 694,105,410.37 2,699,330,450
Issued on account of:
Original subscription..:
Receipts of lawful money
Interim certificates surrendered
Conversion
Exchange ofregistered for coupon..
Exchange of coupon for registered..
Exchange of denominations
Exchange of temporary for permanent
Exchange.of mutilated for perfect...
Transfer of ownership.. ..
Settlement of claims
United States notes reissued
Total
Treasmy
notes.
Liberty bonds
• and .
Victory notes.
Matured
debt.
Debt bearing Total gross debt.
no interest.
$311,191,600 $19,148,948,450 $23,737,304,180.37 $10,939,620.26 $227,958,907. 77 $23,976,202,708.40
543,600
11,561,650
543,600.00
11,561,650.00
311,191,600 19,147,930,400 23,736,286,130.37 10,939,620.26
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543 600.00
11,561,'650.00
2 2 7 QbR 9 0 7 . 77
23 975,184 658^40
Kj
o
112,200
2,855,130
70,654,469.74 23,905,090,000 31,935,404,750
247,072,150
1,064,200
129,155,650
3,819,400
i6,506
50,226,110
11,640
53,215,580
11,300
.5,911,260,119.74
103,600.00
103,600
260,013,750
260,013,750.00
494,506,500 " 494,506,50().00
428,371,980.00
425,516,850
4 690,951,500 6 340,732,000 1,870,838,950 2,902,522,450.00
«> 4,596,041,500 2,276,136,750
70,654,469.74
247,072,150.00
1,074,700.00
179,381,760.00
.3,831,040.00
3,432,089,750 10,428,138,049.74
Retired t h r o u g h Reissues on account of—
104,100
Interim certificates surrendered
259,863,950
Conversion
Exchange of registered for
515,669,500
coupon
1 Deduct.
2 Includes $784,500 on which deflnitive certificates were undeUvered against interim receipts outstanding.
8 Includes $26,298,750 oil which deflnitive certificates were undeUvered against interim receipts outstanding.
4 Includes $473,200,500 exchanges between Federal reserve banks.
6 Includes $183,932,300 exchanges between Federal reserve banks.
Total interestbearing.
107,086,627.50
339,348,000.00
5,9il, 260)119.74
107,086,627.50
103,600.00
260,013,750.00
494,506,500.00
428 371 980.00
2,9d2;522;450.-00
247,072,150.00
1,074 700.00
179:381,760.00
.3,831,040.00
339,348 000.00
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446,434,627.50 10,874,572,677.24
104,100.00
259,863,950.00
104,100.00
259,863,950.00
515,669,500.00
515,669:500.00
to
Public debt of the United States—Recapitulation of issues and retirements, fiscalyear ended June 30, 1922—Continued.
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Interest-bearing debt.
Detail.
Pre-war
loans.
Treasury
Certificates
(war) savings
of
securities. indebtedness.
53,103,380
Debt bearing Total gross debt.
no interest.
•
• $425', 516,850 $428,371,980.00
4 $690,951,500 &$340,734,000 1,870;861,450 2,902,546,950.00
$428,371,980.00
2,902,546,950.00
246,296,850
246,296,850.00
246,296,850.00
1,064,200
129,155,650
3,819,400
1,074,700.00
179,381,760.00
3,831,040.00
$339,348,000.00
1,074,700.00
179,381,760.00
3,831,040.00
339,348,000.00
3,452,351,950
4,537,140,830.00
339,348,000.00
4,876,488,830.00
690,951,500
340,734,000
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275,896,000
• 130,520,000
275,896,000.00
130,520,000.00
275,896,000.00
130,520,000.00
64,837,900
' 64,837,900.00
64,837,900.00
>
60,333,000
8,104,550
20,845,300
139,850
1,900
251,100
1,500,612,200
60,333,000.00
8,104,550.00
20,845,300. 00
139,850.00
1,900.00
251,100.00
1,500,612,200.00
60,333,000.00
8,104,550.00
20,845,300.00
139,850.00
1,900.00
251,100.00
1,500,612,200.00
o
328,702.14
328,702.14
$328,702.14
107,252,812.40
4,852,270,810. 52 $9,076,140.00
85,415,860.52 4,766,854,950
Total retired on account of
redfimpt.inn,
Matured
debt.
fei
Redemption on account of—
Sinking fund..
Bond purchase fund
Repayments of loans to foreign
govern ments
Franchise tax of Federal reserve
banks
Proceeds of Treasury notes
Received for Federal estate taxes
Forfeitures..
Gifts
MisceUaneous receipts
Victory notes
Reimbursements to agents for
unsold securities .
National and Federal reserve
bank notes
Matured issues and issues redeemable at holders' option
Total retired
Liberty bonds . Total interestand
bearing.
Victory notes.
-
Retired through—Continued.
Reissues on account of—Contd. =
Exchange of coupon for regis82,855,130
tered
Exchange of denominations
Exchange of temporary for perrhaTiftnt ' r - ...
Exchange of mutilated for per10,500
fect
50,226,110
Transfer of ownership
11,640
Settlement of claims
United States notes
Total retired on account of
reissues
Treasury
notes.
'85,744,562.66 4,766,854,950
53,103,380
85,744,562.66 5,457,806,450
2,061,541,800
340,734,000
6,914,141,312.66
5,513,893,7501 11.451.282.142.66
9,076,140. OQ 107,252,812.40
107,252.812.40
4,861,346,950. 52
7,030,470,265.06
9,076,140.00 446,600,812.40 11,906,959,095.06
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Securities outstanding (net) June 30,
1922
'
Securities issuable June 30, 1922
883,840,470 679,015,317.45 1,837,565,500 2,246,594,350 17,066,126,400 22,713,142,037.45
2,000
21,278,950 - 21,280,950.00
1,863,480.26 227, 792,722.87 22, 942,798.240.58
21,280,950.00
Securities outstanding and issuable
June 30, 1922
,
883,840,470 679,015,317.45 1,837,565,500 2,246,596,350 17,087,405,350 22,734,422,987.45 . 1,863,480.26 227,792,722.87 22,964,079,190.58
Adjustment of interest-bearing debt
matured during year.
'..
123,387,400.00 23,387,400.00
1 8,778,000
114,609,400
Outstanding June 30,1922.
883,840,470 679,015,317.45 1,828,787,500 2,246,596,350 17,072,795,950 22,711,035,587.45 25,250,880.26 227,792,722.87 22,964,079,190.58
1 Deduct.
< Includes $473,200,500 exchanges between Federal reserve banks.
5 Includes $183,932,300 exchanges between Federal reserve banks.
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EXHIBIT
LIBERTY
BONDS,
VICTORY
NOTES,
TREASURY
NOTES,
17.
AND CERTIFICATES
O F INDEBTEDNESS
ISSUED
AND
cn
to
R E T I R E D DURING THE FISCAL YEAR 1922 AND OUTSTANDING ON JUNE 30, 1922, BY DENOMINATIONS.
Detail.
$50
$100
$500
$1,000
$5,000
$10,000
. $50,000
$100,000
. Total.
Total
number of
pieces.
O u t s t a n d i n g J u n e 30,1921:
. $372,050
3,546
$122,300
$34,500
$109, 250
$61,000
S35,000
$10,000
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
15,029,804,05.0 48,296,865
1,066,186,9.50 1, 720,105,600 1, 364,864,500 6,482,062,000 1, 206,205,000 3,190,380,000
382,583,500
L i b e r t y issues i n registered f o r m . . ' 61,356, 200
905,169,000
366, 285,000
299,360,600
664, 700,000 $289,300,000 $i, i49,666,666 4,117,754,3GP 6,048,069
1 572,308
71,618,000
279,880,000
352,605, 000
• Certificates of i n d e b t e d n e s s
682,380,000
997,300, 000 1 2,632,512, '450
108, 882
298,923,500
Treasury notes
2,216,000
10,354,500
48,188,000
46,375,000
73,690;:000
118,100, 000
Total
O n h a n d i n F e d e r a l reserve b a n k s
( c o n s i g n m e n t stock) J u n e 30,."i;921:
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 f o r m . .
Certificates of i n d e b t e d n e s s .
T r e a s u r y notes
....:.
Total
Securities issued d u r i n g fiscal year:
L i b e r t y issues i n coupon form. ..•
L i b e r t y issues i n registered f o r m . .
Certificates of i n d e b t e d n e s s
T r e a s u r y notes
Total
T o t a l t o b e a c c o u n t e d for
Securities r e t i r e d 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 c o u p o n form
.
L i b e r t y issues i n registered f o r m . .
Certificates of i n d e b t e d n e s s
T r e a s u r y notes
Total
1,127,652,400 2,021,804,500 1, 829,455,000 7, 715, 360,000 1,971, 505,000 4,611,160,000 289, 300, 000 .2. 264. 400.000 22,079,366,350 55,029,670
150
81,311,200
96,750
400
96,028, 500
256, 700
2,279,100
1,000
943, 471,000
305,075,000
2,172,000 '
5,795, 000
79, 747,000
101,980,000
13, 989,000
20,455,000
174,240, 500
1,007,000
26,582,000
4,191,000
81,408,100
98, 564,700
206,020,500 1,039, 380,000
38,710,150
2,803,200
66, 716,700
16,387,700
40,-500,000 • 348,109,000
26,212, 500
93,955,000
72, 943,000
291, 327,000
61, 686,000
302,569,000
14,252,500
"
41,513,350
97,356,900
433,305,000
422,150,666
l^j-440, 000
148,540,000
36i:380,000
21,100,000
618;510,000
21,100,000
210,835,000 1,450-{)G0,000
38,935,000
97y:660,000
441,980,000
927,"200,000
310,760,000
729,500,000
201,341,500 1,035,960,000 1,002,510,000 3, 203; 760,000
24,650,000
39,600
490,964,300
52,336,800
355,904,700
545,811,100
2,470,400
1
9,000.
12- 000
343,215,500 1,941,367,000
152,233,000
63,072,000
437,064,000
119,189, 000
24,820,000
6,605,500
15,000
401,995,000 1,247,070,000
70,615,000
167,180,000
562,575,000 1,036,-590,000
37,645, 000
24,840, 000
152,900,000
14,100,000
199,900,000]
2,698,188,300
4,216,163
fei
2,154,870,850
188, 700,000
488,703,400
1,248,800,000 2 4,774,350,000
1,148,600,000 2,567,367,500
2,057,646
386,194
3 630,911
715,054
a
24,650,000 2,586,100,000
532, 091,000 2,555,496,000 1,072,845,000 2,475,680,000
^
64,750,000
H
O
1,550
8
2,022,276, 200 ' 3,981,691
11,742
. 74,767, 450
169,690
509,749,000
53,032
91,394,100
32,.966,666
9,985,291,750 : 3,789,805
1,250,573,850 2, 217, 726,100 2,236,817,000 9,790,700,000 3,407,320,000 8,433, 430,000 335,050,000 5,050,400,000 34,762,846,400 63,035,638
30,050
345,131, 800
• , 10, 742,850
o
1,030
105,650
• 4,769,743,600 14,645,183
837,229,650 1,051,301
256,300,000
3 905,939
1,392,600,000 3 5,514,847,450
120,080,900
• 72,985
23, 700,000
64,750,000 1,672,600,000 11,242,007,250 16,676,438
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O n h a n d i n F e d e r a l reserve b a n k s
( c o n s i g n m e n t stock) J u n e 30, 1922:
L i b e r t y issues i n c o u p o n form.
Certificates of i n d e b t e d n e s s . .
Treasury notes
Total
O u t s t a n d i n g J u n e 30,1922:
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 f o r m . .
Certificates of i n d e b t e d n e s s
Treasury notes... .
Total
T o t a l a s a b o v e a c c o u n t e d for
39,038,850
39,038,850
63,117,200
6,021,100
104, 735,500
21,389,000
28,457,500
486,388,000
72,504,000
86,540,000
203,805,000
110,305,000
106,790,000
3i8,- 260,000
184,660,000
163,600,000
69,138,300 .
154,582,000
645,432,000
420,900,000
666,520,000
1,215,344,550
564,758,000
617,308,600
2,180,395
157,568
243,643
401,800,000
2,397, 411,150
2, 581,606
2,524
.; 10,000
79,350
83,100
25,500
20,000
267,950
50,000
802,037,650 1,328,769,300 1,131,654,000 5,345,887,000 1,116,315,000 3,497,200,000
13,221,862,950 37,510,624
53,513,300
346, 731,000
606,020,000 270,300,000 1,114,300,000 3, 843,995,500 5,394; 704
263,668,200
340,400,000
849,063,000
30,565, OOO 141,386,000
536,870,000
223,685,000
830,500,000 < 1,837,006, 000 4 309,-402
10,256,100
41,168,500
651,130,000
560,340
253,386,000
233,155,000
1,031,200,000 2,220,295,600
855,630,300 1,602, 776,700 1,550,144,000 6,589,772,000 1,913,575,000 5,29i, 230,000 270,300, 000 2,976,000,000 21,123,428,000 43, 777,594
1,250,573,850 2,217, 726,100 2,236, 817,000 9,790,700, 000 3,407,320,000 8,433,'430,000 335,050,000 5,050, 400,000 34,762,846,400 63,035,638
A m o u n t outstanding as above...
Plus items issuable:
L i b e r t y issues i n coupon form
(on e x c h a n g e )
T r e a s u r y notes (on exchange)
T r e a s u r y n o t e s (fuU-paid s u b scription)
Certificates of i n d e b t e d n e s s (fullpaid subscription)
Total outstanding and issuable..
1 Includes 460 pieces, par value $248,729,450, denominations unavailable, chiefly special certificates.
2 Includes 94 pieces, par value $1,792,100,000, denominations imavailable, chiefly special certificates.
3 Incfudes 397 pieces, par value-$l,966,S29,450, denominations unavailable, chiefly special certificates
• < .Includes 157 pieces, par value $74,000,000, denominations unavailable, chiefly special certificates.
6 Includes $9,003,000 matured certificates of indebtedness, $14,609,400 matured Victory 3f's.
•*
175,900,000
225,900,000
21,123, 428,000
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21,278,9^
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26,298, 750
784,500
521,171, 792,200
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EXHIBIT
18.
LIBERTY BONDS, VICTORY NOTES, TREASURY NOTES, AND CERTIFICATES OF INDEBTEDNESS RECEIVED AND.
DELIVERED DURING THE FISCAL YEAR 1922 AND ON HAND ON JUNE 30, 1922, BY DENOMINATIONS.
DetaU.
$50.
$100.
$500.
$1,000.
•Stock i n v a u l t J u n e 30,1921:
$432,155,850 $423,427,900 $359,468,000 $1,980,851,000
L i b e r t y issues i n c o u p o n form
678,431,000
L i b e r t y issues i n registered form
58,491,900 77,422,000 120,088,500
44,995,000
Certificates of i n d e b t e d n e s s .
16,795,500
137,537,000
T r e a s u r y notes
5,473,900 10,312,000
R e c e i v e d from B u r e a u of E n g r a v i n g a n d
P r i n t i n g d u r i n g fiscal year:
238,000,000
L i b e r t y issues i n c o u p o n form
25,050,000 47,700,000 19,000,000
100,000
9,400,000 • 8,000,000
39,000,000
L i b e r t y issues i n registered form
117,250,000
Certificates of i n d e b t e d n e s s
423,500,000
T r e a s u r y notes
22,500,000 105,000,000
460,000,000
R e s t o r e d t o stock d u r i n g fiscal year:
321,172,000
L i b e r t y issues i n c o u p o n form
5,400,100 10,874,500 33,933,500
116,750
141,600
1195,000
1191,000
L i b e r t y issues in registered form
2,400,000
Certificates of i n d e b t e d n e s s
4,048,000
15,507,000
T r e a s u r y notes
545,000
$5,^000.
$10,000.
$50,000.
$100,000.
Total.
Total
n u m b e r of
pieces.
$869,610,000 $1,161,250,000
$5,226,762,750 15,867,230
602,670,000 1,128,890,000 $1,788,700,000 $2,142,700,000 6,597,393,400 3,153,290
217,200,000
544,300,000
74,035,000
120,556
897,325,500
'89,240,000
67,500,000
228,944
342,287,900
32,225,000
672,000,000.
23,000,000
5,000,000
52,500,000
635,000,000 1,240,000,000.
.515,000,000 1,047,000,000 .
5,000,000
74,380,000 .
12,430,000
1,500,000',
4,300,000 .
1 5,400,000
35,245,000
12,060,000
2,000,000
22,200,000
1,024,750,000
10,000,000
129,000,000
1,810,000,000 4,225,750,000
1,600,000,000 3,749,500,000
1,325,800162,200
927,100
1,118,700
481,005,100
1 21,134,350
5,900,000
47,900,000
620,273
1 2,203
2,950
33,936
110,800,000
1,300,000
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T o t a l t o b e a c c o u n t e d for..
DeU ver ed t o register for d e s t r u c t i o n :
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
T r e a s u r y notes
D e h v e r e d for issue:
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
T r e a s u r y notes
D e h v e r e d for specimens:
Certificates of i n d e b t e d n e s s
T r e a s u r y notes
Stock i n v a u l t J u n e 30,1922: • •
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
T r e a s u r y notes
Total accounted for..
521,181,100 597,301,700 793,700,500 4,341,202,000 2,861,425,000 5,638,330,000 1,788,300,000 6,165,000,000 22,. 706,440,300
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1,474,500
50,450
3,313,200
186,100
15,654,000
186,500
27,692,500
190,827,000
3,357,000
78,095,000
257,575,000
55,975,000
118,295,000
105,050,000
303,090,000
52,650,000
38,710,150
2,803,200
66,716,700
16,387,700
40,500,000
26,212,500
72,943,000
61,686,000
348,109,000
93,955,000
291,327,000
302,569,000
210,835,000 1,450,000,000
38,935,000
97,060,000
441,980,000
927,200,000
310,760,000
729,500,000
24,650,000
468,843,700
85,200,000
302,655,050
711,400,000 1,238,572,500
336,272
30,205
194,562
2,154,870,850
188,700,000
488,703,400
1,248.800,000 2 2; 982,250,000
1,14S; 600,000 2,567,367,500
2,057,646
386,194
2 630,817
715,054
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2,000
15,000
.. 5,000
422,421,300 411,972,500 356,247,500 2,001,087,000
619,928,000
55,721,500 70,206,600 101,494,500
101,471,000
33,410,000
310,475,000
14,266,400 57,674,000
459,445,000
558,200,000
150,745,000
258,660,000
40,000
20,000
300,000
100,000
357,000
125,000
12.
• 4
457,630,000
4,108,803,300 15,419,385
929,350,000 1,711,000,000 1,868,000,000 5,913,900,600 2,896,888
228,370,000
907,796,000
225,215
393,800,000
666,522
411,020,000
520,100,000 1,572,195,400
521,181,100 597,301,700 793,700,500 4,341,202,000 2,86.1,425,000 5,638,330,000 1,788,300,000 6,165,000,000 22,706,440,300 23,558,776
1 Counter entry.
Deduct.
2 Does n o t i n c l u d e 94 pieces, special certificates, v a l u e $1,792,100,000.
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EXHIBIT
19.
LIBERTY BONDS AND VICTORY NOTES—DENOMINATIONAL EXCHANGES OF COUPON BONDS, SHOWING NET
INCREASES AND DECREASES FROM A P R I L 6, 1917, TO JUNE 30, 1922.
F i r s t 3^'s.
DetaU.
Original deliveries ( i n c l u d i n g
those on conversion):
$50
$100
$500... .
$1.000
$5,000
$10,000
.
I s s u e d on d e n o m i n a t i o n a l exchange:
$50 . . . .
$100
$500
$1,000
•
$5,000
$10,000
Fnstsecond
4i's.
Second 4's.
Second 4 i ' s .
T h i r d 4J's.
Fourth 4i's.
V i c t o r y 4f's.
Victory
3rs.
Total.
1,269,490,150 498,275,700 456,372,700 2,443,000 3,449,270,600 3,206,707,550 3,801,280,700 6,287,964,600 3,385,516,900 640,121,150 22,997,443,050
Total . . .
Total
F k s t 4i's.
$601,050 $2,866,726,550
$100,064,050 $98,935,000 $60,484,400 $297,200 $383,289,600 $241,381,950 $701,956,600 $864,615,800 $415,100,900
565,920,500
1,604,100 3,457,274,000
720,302,600 1,025,791,800
444,724,000
353,392,600
399,300
122,360,100 124,104,700 98,674,300
352,530, 500
379,896,500
329,212,000
259,500
3,157,000 2,127,686,500
519,188,000
284,071,000
97,756,000 84,207,000 77,409,000
.949,310,000 164,524,000 181,080,000 1,222,000 1,591,870,000 1,515,657,000 1,384,390,000 2,384,269,000 1,308,080,000 346,554,000 9,826,956,000
257,555,000 54,985,000 1,499,580,000
206,125,000
239,585,000
105,000
449,650,000
259,305,000
13,045,000 19,225,000
486,330,000 233,220,000 3,219,220,000
408,610,000 1,044,450,000
460,590,000 - 552,900,000
160,000
13,460,000 19,500,000
S u r r e n d e r e d - for d e n o m i n a tional e x c h a n g e :
$50
..
$100
:
$500.
$1,000. .
$5,000
$10,000... .
Total
F i r s t 4's.
62,237,950
63,430,600
34,849,500
14,402,000
.
174,920,050
22,369,950
15,923,000
2,453,000
4,044,000
2,590,000
2,600,000
20,232,400
30,834,400
16,432,000.
36,815,000
6,835,000
5,390,000
49,979,950 116,538,800
100,150
164,100•
95,000
219,000
25,000
60,000
104,322,700
86,835,800
24,849,500
41,221,000
49,980,000
69,760,000
105,016,400
130,922,800
'65,120,000
352,827,000
92,830,000
147,270,000
274,316,750•
480,000
301,534,000' l;181,600
109,006,500
1,654,000
428,147,000 99,642,000
116,065,000 20,110,000
142,050,000 88,160,000
1,528,891,450
1,500,214,300
505,592,500
2,141.210,000
592:950,000
1,003,710,000
663,250
376,969,000
893,986,200 1,612,439,450 2,464,724,700 1,371,119,250 211,227,600
7,272,568,2.50
416,607,250
348,935,700
102,419,500
460,197,000
108,050,000
176,230,000
523,207,900520,452,300
148,713,500
703,696,000
196,465,000
372,190,000
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45,021,250
38,079,000
53,625,000
599,669,000
148,705,000
486,020,000
10^780,550
5,846,500
15,815,000
142,478,000
3,867,350
2,923,100
4,782,500
35,202,000
1,985,000
1, 220,000
1,208,600
2,449,700
8,472,500
52,533,000
13,715,000
38,160,000
1,250
2,000
122,000
308,000
10,000
220,000
.28,033,700
28,810,800
28,599,500
202,580,000
37,075,000
51,870,000
14,127,000
18,788,200
34,812,000
361,559,000
88,800,000
375,900,000
87,700
271,900
758,000
97,730,000
18,220,000
94,160,000
252,053,650
208,160,100
290,384,500
3,533,505,000
657,925,000
2,330,540,000
174,920,050
49,979,950 116,538,800
663,250
376,969,000
893,986,200 1,612,439,450 2,464,724,700 1,371,119,250 211,227,600
7,272,568,250
• 68,378,450
80,547,800'
37,674,500
73,314,400
55,589,500
87,808,500
825,662,000 1,215,784,000
130,605,000
218,810,000
494,530,000
788,460,000
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Liberty bonds and Victory notes—Denominational exchanges of coupon bonds, showing net increases and decreases from April 6, 1917, to June
SO, 1922—Continued.
Detail.
Decrease on d e n o m i n a t i o n a l
exchange:
.•
S50
$100
'..
$500
$1,000
$5,000
$10,000
F i r s t 4's.
First 4i's.
$51,457,400 $18,502,600 $19,023,800
57,584,100 12,999,900 28,384,700
7,959,500
19,034,500
615,000
1,380,000
128,076,000
Total
/ Increase on
exchange:
$50
SlOO
$500
S1,000
$5,000..
$10,000
First 3i's.
33,497,500
55,368,000
Firstsecond
Second 4's.
$98,900
162,100
20,000
30,000
20,000
10,000
$76,289,000
58,025,000
341,000
166,554,000
12,970,000
19,270,000
Tliird 4i's.
Fourth 4i's.
V i c t o r y 4f's.
Victory
3f's.
$90,889,400 . $348,228,800
112,134,700
311,261,200
30,308,000
46,830,000
118,468,000
63,942,000
-15,725,000
3,880,000
26,950,000
$442,660,100
447,137,900
60,907,500
133,271,000
3,065,000
$229,295,500
263,455,000
55,381,500
1,180,000
$392,300 $1,276,837,800
910,300 1,292,054,900
896,000
221,337,000
1,912,000
318,803,000
1,890,000
. 38,165,000
47,610,000
774,142,000 1,087,041,500
549,312,000
Second 4 l ' s .
394,475,100
6,000> 600
OS
Total.
3,194,807,700
denominational
Total
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100
128,076,000
...128,076,000
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•
600
•
-v;---..-•--
700
6,129,000
1,711,098,000
103,140,000
1,374,440,000
2,329,500 •
31,158,000 15,718,000
6,880,000
10,000
32,770,000
47,000
119,000
5,000
170,000
3,750,000
161,359,000
65,000
1,380,000
127,200,000
11,695,000
255,580,000
429; 407,000
26*435,000
318,300,000
2,500
645,359,000
25,410,000
416,270,000
172,702,000
32,640,000
343,970,000
6,000,000
55,368,000
341,000
166,554,000
394,475,100
774,142,000
1,087,041,500
549,312,000
6,000,600 '3,194,807,700
33,497,500
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EXHIBIT
20.
L I B E R T Y B O N D A N D V I C T O R Y N O T E C O N V E R S I O N S F R O M N O V E M B E R 1 6 , 1 9 1 7 , TO J U N E 3 0 , 1 9 2 2 .
Converted into—
Original
issue.
Issue.
First 3^'s
First 4's
First 4J's
First second 4J's
Second 4's
Second 4Vs
Third 4J's
Fourth 44's
Victory 3f's
Victory 4|'s.
1 $1,989,455,550
:
Total
3,807,865,000
4,175,650,050
6,964,581,100
672,585,100
3,822,787,900
Issued on
conversion.
$568,318,450
547,846,650
3,492,150
First 4's.
First 4i's.
$568,318.450
$7,570,550
540,276,100
First second
4i's.
Second 4J's.
$3,492,150
y
$3,674,384,850
3,674,384.850
424,666,750
505,068,900
21,432,924,700 5,723,777,750
Victory 3rs. Vibtory 4|'s.
$424,666,750
568,318,450
547,846,650
3,492,150
1 Includes full-paid interim certificates not exchanged for 3^ per cent bonds.
3,674,384., 850
424,666,750
Redeemed to Outstanding
June 30,1922. Jime 30,1922.
$72,350 $1,410,002,050
in
12,523,500
15,518,850
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525,826,050
22,020,600
o
3,492,150
54,420,800
79,059,3.50
418,208,600 3,256,176,250
701,862,050 3,473,788,000
>
619,197,350 6,345,383,750
$505,068,900
577,573,550 . 2 14 609,400 ^ Pi
1,912,006,650 1,991,183,400
505,068,900 4,345,519,350 17,087,405,350
2 Now included in matured debt.
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158
REPORT ON THE FINANCES.
EXHIBIT
21.
R E C A P I T U L A T I O N OF L I B E R T Y B O N D S AND VICTORY N O T E S
I S S U E D A N D R E T I R E D F R O M A P R I L 6, 1 9 1 7 , TO J U N E 3 0 , 1 9 2 2 ,
AND AMOUNT OUTSTANDING J U N E 30, 1922.
Pieces.
Detail.
I . Delivered b y t h e B u r e a u of E n g r a v i n g a n d P r i n t i n g t o t h e Division
of L o a n s a n d C u r r e n c y :
F i r s t L i b e r t y loan—
5,676,950
3§ per cent full-paid i n t e r i m certificates
5,518,000
3^ pel cent coupon b o n d s
632,500
3 | per cent registered b o n d s
4,720,000
Converted 4 per cent t e m p o r a r y coupon b o n d s
470,750
Converted 4 per cent p e r m a n e n t coupon b o n d s
526,'000
Converted 4 per cent registered b o n d s
5,575,000
Converted 4J per cent t e m p o r a r y c o u p o n b o n d s
2,895,500
Converted 4 | per cent p e r m a n e n t coupon b o n d s
449,560
Converted 4J per cent registered b o n d s
130,200
Second converted 4J per cent t e m n o r a r y b o n d s
17,300
Second c o n v e r t e d 41 per c e n t p e r m a n e n t coupon b o n d s . . . . . .
.
47,530
Second converted 4 | per cent registered b o n d s
.
Second L i b e r t y loan—
15,968,000
4 per cent t e m p o r a r y c o u p o n b o n d s
1,156,500
4 per cent p e r m a n e n t coupon b o n d s
1,415,000
4 per cent registered b o n d s
".
13,552,000
Converted 4 J per cent t e m p o r a r y coupon b o n d s
9,131,000
Converted 4^ per cent p e r m a n e n t coupon b o n d s
1,355,160
Converted 4 | per c e n t registered b o n d s
T h i r d L i b e r t y loan—
25,368,000
4J per cent t e m p o r a r y coupon b o n d s
4f per cent p e r m a n e n t coupon b o n d s . . .
18,858,000
4^ per cent registered b o n d s
.
2,028,550
F o u r t h L i b e r t y loan—
35,883,000
4 i per cent t e m p o r a r y coupon b o n d s
18,289,600
4 | per c e n t p e r m a n e n t coupon b o n d s '
3,482,550
4J per cent registered b o n d s . . •
T
.;..
Victory L i b e r t y loan—
1,490,800
3f per cent coupon notes
76,060
3 | per cent registered notes
22,121,200
4f per cent coupon notes
1,674,800
44 ner cent reffistered notes
Total
".
Less unissued stocks—
1. On h a n d J u n e 30,1922—
a W i t h Division of L o a n s Eind C u r r e n c v
& W i t h Federal reserve b a n k s
Total
• '.
.
4,630,250,000
240,000,000
1,750,000,000
3,776,500,000
3,820,350,000
1,802,190,000
4,704,150,000
4,709,425,000
1,661,270,000
7,896,000,000
7,182,600,000
2,598,050,000
2,327,400,000
777,280,000
5,558,100,000
1,312,820,000
66,290,850,000
18,326,643
2,180,395
10,024,743,050
1,215,344,550
20,507,038
11,240,087,600
12,685,856
6,509,713
4,160,658,650
2,515,515,350
.
Total
19,195,569
6,676,174,000
T o t a l deductions
39,702,607
17,916,261,600
158,803,903
48,374,588,400
3,703,986
14,938,073
24,406,982
33,024,445
17,498,172
1,989,455,550
3,807,865,000
4,175,650,050
6,964,581,100
4,495,373,000
93,571,658
21,432,924,700
5,919,032
2,727,286
1,541,304
529,239
589
.
3,242
4,837,752,900
2,916,191,300
1,158,318,050
467,426,050
1,946,300
1,339,600
15,053,251
31,930,341
27
7,501,966
5,249,822,850
10 314,015,100
17,800
1,985,057,750
65,206,277
26,931,887,700
T o t a l t o be accounted for fsee I t e m V )
I I . Deliveries from stock b y Division of L o a n s a n d Currency:
1. Against a n e q u a l face a m o u n t of cash received m t o t h e Treasu r y on account of original subscriptions—
a First Liberty l o a n . . .
b. Second L i b e r t y loan
c. T h i r d L i b e r t y loan
d. F o u r t h L i b e r t y loan
e. Victory L i b e r t y loan . .
Total .
2. Against a n e q u a l p a r a m o u n t of securities s u r r e n d e r e d b.
c
d.
e
/.
g.
O n e x c h a n g e of coupon for registered
O n e x c h a n g e of registered for coupon. .
On transfer..
O n m i x e d cases
O n account of m u t i l a t i o n s
O n conversion (does n o t include 4 per cent b o n d s deUvered a g a m s t i n t e r i m s )
h. O n e x c h a n g e of t e m p o r a r y for p e r m a n e n t
i. O n coupon error
'
j O n exchange of i n t e r i m certificates .
$4,130,200,000
1,745,250,000
1,300,000,000
820,000,000
87,750,000
492,700,000
950,000,000
932,500,000
1,000,250,000
39,200,000
8,050,000
38,565,000
198,509,510
"^
2. Excess stocks delivered t o register for r e t i r e m e n t —
a. BV Division of L o a n s a n d C u r r e n c v
Amount.
Total
159
SECRETAEY OF THE TEEASUEY.
Recapitulation of Liberty bonds and Victory notes issued and retired from April 6, 1917,
to June SO, 1922, and amount outstanding June SO, 1922—Continued.
Detail.
Pieces.
I I . D e h v e r i e s from stock b y D i v i s i o n of L o a n s a n d C u r r e n c y — C o n t d .
3. F o r adjudicated claims for r e p l a c e m e n t s
T o t a l accounted f o r . .
I H . Received for r e t i r e m e n t a n d canceUation:
1. F o r r e d e m p t i o n accounts—
a. B o n d p u r c h a s e f u n d . . .
b. C u m u l a t i v e sinking fund
c. R e p a y m e n t of foreign loans
d. F r a n c h i s e t a x F e d e r a l reserve b a n k s
e. E s t a t e a n d inheritance t a x e s
/ . Gifts a n d forfeitures . .
g. MisceUaneous receipts
ll. R e d e m p t i o n s of Victory notes other t h a n included above
Total .
^-
2. F o r reissue of a n e q u a l p a r a m o u n t —
fl. O n exchange of d e n o m i n a t i o n s
b. O n exchange of coupon for registered
c. O n exchange of registered for coupon
d. O n transfer
'. '.
e. O n m i x e d cases
/ . O n account of m u t U a t i o n s
g. O n conversion
h. O n exchange of t e m p o r a r y for p e r m a n e n t
7. O n c o u p o n error
. . .
j . O n exchange of i n t e r i m certificates
Total
3. Securities lost or destroyed in lieu of w h i c h other securities issued in r e p l a c e m e n t (covered b y insurance or b o n d s of indemnity)
T o t a l received a n d lost or destroyed
I V . O u t s t a n d m g J u n e 30.1922:
1. F i r s t L i b e r t y loan 3^ per cent fuU p a i d i n t e r i m c e r t i f i c a t e s —
2. F i r s t L i b e r t y loan 3^ p e r cent b o n d s
3. F i r s t L i b e r t y loan converted 4 per cent b o n d s
4. F i r s t Libert^'- loan c o n v e r t e d 4^ per cent bonds.5. F i r s t L i b e r t y loan second converted 4J per cent b o n d s
6. Second L i b e r t y loan 4 p e r cent b o n d s .
7. Second L i b e r t y loan coriverted 4^ per cent b o n d s
8. T h i r d L i b e r t y loan 4J p e r cent b o n d s
9. F o u r t h L i b e r t y loan 4^ p e r cent b o n d s
10. V i c t o r y L i b e r t y loan 3 f p e r cent n o t e s .
11. Victory LilDcrty loan 4 | per cent notes
;..
Total outstanding
V . T o t a l received for r e t i r e m e n t a n d canceUation, a n d o u t s t a n d i n g
V I . Reconcihation w i t h p u b h c d e b t s t a t e m e n t :
O u t s t a n d i n g as a b o v e
P l u s issuable on exchanges
T o t a l as s h o w n on p u b l i c d e b t s t a t e m e n t
Amount.
28,968
$9,776,000
158,806,903
48,374,588,400
1,730,091
376,508
149,621
35,909
40,914
720
392
950,211
1,965,791,450
537,146,250
•219,368,800
63,255,450
50,666,350
194,100
380,200
1,508,716,750
3,284,366
4,345,519,350
43,499,315
5,636,738
1,754,947
859,656
1,972
3,258
16,965,091
40,406,303
27
3,470,568
4,837,775,400
2,916,191,300
1,179,481,0.50
467,426,050
1,946,300
1,339,600
5,249,860,500
10,314,070^400
17,800
1,985,058,250
112,597,875
26,953,166,650
•
16,810
9,776,000
115,899,051
31,308,462,000
2,524
2,105,326
80,509
1,817,452
9,312
327,587„
6,643,497
10,279,392
13,633,600
8,528
8,000,125
267,950
1,407,650,600
12,475,400
525,107,100
3,490,000
54,113,050
3,253,661,950
3,469,741,800
6,.339d67,050
14,609,400
1,985,842,100
42,907,852
17,066,126,400
158,806,903
48,374,588,400
42,907, 852
24,623
17,066,126,400
21,278,950
42,932,475
17,087,405,350
EXHIBIT 22,
Oi
O
o
LOAN AND TAX CERTIFICATES OF I N D E B T E D N E S S ISSUED THROUGH EACH F E D E R A L R E S E R V E BANK FROM
s, ^
J U L Y 1, 1 9 2 1 , TO O C T O B E R 3 1 , 1 9 2 2 .
F e d e r a l reserve b a n k .
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 m a turity.
Rate.
Total amoimt.
Boston.
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 Mar. 3, 1919—
Series B-1922..
Series C-1922.
Series D-1922
A u g . 1,1921
N o v . 1,1921
Apr. 15,1922
P e r cent,
bh
4i
3i
New York.. Philadelphia.
Cleveland.
Richmond.
Atlanta.
$21,068,500
2,410,000
12,990,000
$99,622,500
13,813,000
50,880,000
$30,336,500
3,652, COO
10,590,000
$19,370,000
7,984,000
13,590,000
$7,865,000
1,649,500
5,190,000
$6,949,500
1,290,500
4,380,000
461,267,500
36,468,500
164,315,500
44,578,500
40,944,000
14,704,500
12,620,000
116,891,000
182,871,000
124,572,000
179,691,500
64,903,000
243,544,000
200,000,000
9,101,500
10,921,500
8,692,000
17,002,500
3,100,500
20,696,000
17,320,000
47,263,500
80,057,500
48,422,500
66,495,000
18,471,500
94,098,500
67,840,000
9,033,500
12,081,500
8,191,500
17,476,500
3,707,000
25,888,500
14,120,000
11,29.5,000
13,320,000
10,100,000
14,283,000
10,300,000
20,700,000
18,120,000
3,746,000
4,665,000
2,550,500
6,619,000
2,799,500
6,996,500
6,920,000
1,812,500
1,617,500
2,793,500
5 547 500
l ' 826' 500
6,'853,500
5,840,000
266,250,000
273,000,000
227,000,000
21,650,000
21,650,000
17,320,000
101,050,000
107,800,000
94,840,000
17,650,000
17,650,000
14,120,000
22,650,000
22,650,000
18,120,000
8,650,000
8,650,000
6,920,000
7,300,000
7,300,000
5,840,000
T o t a l t a x certificates
1.878,722,500
147,451,000
726,338,500
139,918,500
161,538,000
58,516,500
46,731,000
G r a n d t o t a l loan a n d t a x
certificates
2,339,990,000
183,922,500
890,654,000
184,497,000
202,482,000
73,221,000
59,351,000
A u g . 1,1922
A p r . 1,1922
O c t . 16,1922
$259,471,500
51,796,000
150,000,000
T o t a l loan certificates
I s s u e d in 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.2-1922
Series TS-1922
Series TM3-1922
Series TS2-1922 . .
Series TJ2-1922
Series TD-1922
. Series TD2-1922
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 , 1923:
S e p t . 24,1917, as a m e n d e d —
Series TM-1923
Series TJ-1923
Series TS-1923
Aug.
Sept.
Sept.
Nov.
Dec.
Dec.
June
1,1921
15,1921
15,1921
1,1921
15,1921
15,1921
1,1922
Mar.
Sept.
Mar.
Sept.
June
Dec.
Dec.
15,1922
15,1922
15,1922
15,1922
15,1922
15,1922
15,1922
5i
5i
5
4^
4^
4^
3*
.
o
Pi
H
O
>
a
in
Mar. 15,1922
J u n e 15,1922!
S e p t . 15,1922
Mar. 15,1923
J u n e 15,1923
S e p t . 15,1923 /
4A
31
3^
'
F e d e r a l reserve b a n k .
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 m a turity.
Rate.
Chicago.
ro
— ^
•
•
00
1 L o a n certificates of 1922:
4i "
Sept. 24, 1917,, as a m e n d e d A p r . 4,
M
; 1918, a n d Mar.-S, 1919—
i-e
Series B-i922
fo
Series C-1922 . .
to
• Series D-1922
St. L o u i s .
Minneapohs.
Kansas City.
Dallas.
San Francisco.
Oi
Percent.
Aug. 1,1921
N o v . 1,1921
A p r . 15,1922
Aug. 1,1922
Apr. 1,1922
Oct. 16,1922
4\
3i
T o t a l loan certificates
$9,233,500
2,218,500
6,000,000
$7,709,000
1,550,000
5,190,000
$9,8a3,500
1,725,-000
6,000,000
$5,289,500
1, .541,000
3,600,000
$16,016,500
.5,900,000
10,590,000
55,190,000
17,452,000
14,449,000
17,608,'500
10;430,500
32,506,500
in
tei
o
[li Issued in 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:
Sept. 24, 1917, as a m e n d e d —
Series TM2-1922
Series TS-1922
Series TM3-1922
Series TS2-1922..
.
Series TJ2-1922
Series TD-1922
Series TD2-1922
Issued in ancicipation of i n c o m e a n d
profits t a x e s , 1923:
S e p t . 24,1917, as a m e n d e d —
Series TM-1923
Series TJ-1923
Series TS-1923
Aug.
Sept.
Rept.
Nov.
Dec.
Dec.
June
1,1921
15.1921
15' 1921
l ' 1921
15,1921
15,1921
1,1922
Mar. 1.5,1922
J u n e 15,1922
Sept. 15,1922
Mar.
Sept.
Mar.
Sept.
June
Dec.
Dec.
1.5,1922
15,1922
15,1922
15,1922
15,1922
15,1922
15,1922
Mar. 15,1923
J u n e 15,1923
S e p t . 15,1923
Total t a x certificates
G r a n d total loan a n d t a x certificates-
$26,127,500
8,0S2,500
21,000,000
i
>
4^
31
17.636,000
26; 778,500
15,856,000
21,288,000
9,877,500
27,318,500
28,000,000
3,695,000
6,145,500
3,035,500
6,638,500
2,411,500
8, QU, 500
8,000,000
2,689,000
3,500,000
3,420,000
5,730,000.
1,450,000
7,442,500
6,920,000
2, 516,.500
6,705,000
5,632,000
6,475,000
2,069,000
8,493,500
8,000,000
2,489.000
3.979,000
5; 278,500
3,586,500
2,605,000
4,175,000
4,800,000
5,613,500
13,100,000
10,600,000
8,550,000
6,285,000
12,270,000
14,120,000
n
35,000,000
35,000.000
28,000,000
10,000,000
10,000,000
8,000,000
8,650,000
8,650,000
6,920,000
. 10,000,000
10,000,000
8,000,000
6,000,000
6,000,000
4, 800,000
17,650,000
17,650,000
14,120,000
H
244,754,500
66,537,500
55,371,500
67,891,000
43,713,000
119,958,500
in
299,944,500
83,989,500
69,820,500
85,499,500
54,143,500
152,465,000
3^
O
>
d
1 " '
CD
EXHIBIT 23.
to
LOAN AND TAX CERTIFICATES OF I N D E B T E D N E S S I S S U E D THROUGH EACH F E D E R A L R E S E R V E BANK FROM
A P R I L 6, 1917,, T O O C T O B E R 3 1 , 1 9 2 2 .
[In t h o u s a n d s of doUars.]
I s s u e d i n a n t i c i p a t i o n of l o a n s .
F e d e r a l reserve b a n k .
Furst
loan.
Second
loan.
Boston
New York
PhUadelphia..
Cleveland......
Richmond....
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
DaUas
S a n Francisco
Treasury.i...
$57,367
460,462
43,400
58,900
13,703
13,305
77,693
32,745
14,600
30,300
18,225
36,900
10,605
$132,044
1,467,543
89,132
182,513
40,014
32,135
138,597
45,700
29,471
38,039
39,347
85,958
Total...
868,205
2,320,493
Fourth
loan.
^l^an^^
$214,417
1,255,308
196,500
238,034
75,829
• 79,573
325,355
133,584
89,350
128,524
90,925
172,791
11,895
$381,153
1,680,989
316,020
440,569
117,983
114,857
663,204
186,963
127,560
176,866
83,320
305,020
65,316
$475,792
2,255,^145
420,335
554,761
187,497
143,312
953,416
245,288
218,881
187,745
101,546
390,475
23,397
$188,176
959,163
145,544
174,479
48,864
72,428
278,575
84,738
73,113
81,875
77,638
168,052
7,400
$105,076
539,979
100,530
121,767
35,814
21,098
157,360
50,955
25,221
44,845
18,733
93,872
12,000
$57,677
264,270
70,336
64,244
22,319
16,192
85,179
28,249
21,439
25,984
14,502
47,047
$1,611,702
8,882,859
1,381,797
1,8Sb, 267
542,023
492,900
2,679,379
808,222
, 599,635
714,178
444,236
1,300,115
130,613
3,012,085
4,659,820
6,157,590
2,360,045
1,327,250
717,438
21,422,926
Third
loan.
I Series 1920. | Series 1921. | Series 1922. |
Total.
o
pi
H
o"
H
I s s u e d ' i n a n t i c i p a t i o n of t a x e s .
•
Series 1918. Series 1919. Series 1920. Series 1921. Series 1922. Series 1923.
Boston
New York
PhUadelphia...
Cleveland
Richmond
Atlanta
Chicago
....
S t . Louis
Minneapohs
KansasCity..-.
DaUas
S a n Francisco.,
Treasury
Total..
>
Grand total.
F e d e r a l reserve b a n k .
a
Total.
$83,260
831,473
95,537
285,452
20,822
13,006
162,934
22,703
11,398
21,037
28,951
47,831
$256,912
1,451,852
• 141,002
435,440
92,519
71,414
463,807
75,522
51,650
41,984
61,940
166,157
44,588
$187,623
1,358,566
191,939
246,367
64,261
79,120
395,438
' 98,585
63,788
69,996
88,671
199,031
34,645
$127,678
822,994
135,318
194,031
54,652
25,639
182,606
60,029
26,860
56,257
24,440
123,430
40,063
$129,969
683,992
156,178
165,684
52,972
32,527
.201,066
59,813
40,683
58,518
34,017
99,739
$60,620
303,690
49,420
63,420
24,220
20,440
98,000
28,000
24,220
28,000
16,800
49,420
$846,062
5,452,567
. 769,394
1,390,394
309,446
242,146
1,503,851
344,652
218,599
275,792
254,819
685,608
119,296
$2,457,764
14,335,426
2,151,191
3,225,661
851,469
735,046
4,183,230
1,152,874
818,234
989,970
699,055
1,985,723
249,909
1,624,404
3,354,787
3,078,030
1,873,997
1,715,158
766,250
12,412,626
33,835,552
in
EXHIBIT
24.
TREASURY NOTES ISSUED THROUGH EACH F E D E R A L R E S E R V E BANK AND THE TREASURY DEPARTMENT
FROM JUNE 15, 1921, TO OCTOBER 3 1 , 1922.
F e d e r a l reserve b a n k .
A u t h o r i z i n g act a n d series.
S e p t . 24, 1917, as a m e n d e d :
Series A-1924
Series B-1924
Series A - 1 9 2 5 . . .
Series B-1925
Series A-1926
Series B-1926
D a t e of
maturity.
D a t e of issue.
June
Sept.
Feb.
June
Mar.
Aug.
15,1921
15,1921
1,1922
15,1922
15,1922
1,1922
June
Sept.
Mar.
Dec.
Mar.
Sept.
15,1924
15,1924
15,1925
15,1925
15,1926
15,1926
Total amount.
P e r ct.
5f
5^
4• 4i
'
4f
4J
Total
$311,191,600
390,706,100
1601,599,500
3 335,141,300
2 617,769,700
3 486,940,200
2,743,348,400
Cleveland.
Richmond.
Atlanta.
Boston.
New York.
Philadelphia.
$22,905,000
37,423,400
51.960,000
11,158,200
51,093,800
37,096,600
$157,225,200
146,615,100
254,213,300
173,914,300
314,059,200
196,949,300
$45,509,500
40,597,200
45,865,900
20,128,800
47,904,000
32,759,500
$21,175,200
.36,500,000
40,305,000
24,162,300
49,795,000
45,573,000
$8,698,500
14,249,000
14,966,300
4,549,600
13,252,200
13,763,800
$2,169,900
5,934,700
11,743,200
2,707,800
4,114,500
11,391,200
211,637,000 1,242,976,400
232,764,900
217,510,500
69,479,400
38,061,300
w
o
pi
teJ
H
O
•
F e d e r a l reserve b a n k .
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.
S e p t . 24,1917, as a m e n d e d :
Series A-1924
Series B-1924
Series A-1925
Series B-1925
Series A-1926
Series B-1926
June
Sept.
Feb.
June
Mar.
Aug.
15,1921
15,1921
1,1922
15,1922
15,1922
1,1922
June
Sept.
Mar.
Dec.
Mar.
Sept.
15,1924
15,1924
15,1925
15,1925
15,1926
15,1926
P e r ct.
5f
5.
4^
44f
4^
Total
1 Includes $200,000,000 allotted in exchange for Victory notes.
2 Issued only in exchange for 4f per cent Victory notes.
St. Louis.
Minneapolis.
K a n s a s City.
Dallas.
San F r a n cisco:
Treasury
Department.
>
Ul
$20,650,200
43,210,700
84,145,300
48,138,600 •
65,964,800
59,107,200
$9,740,100
16,212,500
17,384,200
12,250,000
20,745,000
17,061,500
$5,301,100
. 13,840,000
15,199,800
6,350,900
7,747,300
13,503,000
$5,346,500
11,674,500
21,697,500
16,125,400
9,909,900
14,677,500
$4,058,600
5,449,000
9,840,500
4,292,200
2,004,000
8,455,700
$8,411,800
19,000,000
34,278,500
11,363,200
31,180,000
34,824,000
$1,777,900
321,216,800
93,393,300
61,942,100
79,431,300
34,100,000
139,057,500
1,777,900
d
pi
»Includes $141,515,700 allotted in exchange for Victory notes.
C5
EXHIBIT
25.
TREAStTB-Y BONB^ OF 1947-1^52, SUBSCRIPTIONS AND ALLOTMENTS (UNREViSED), B ^ FEDERAL R E S E R V E
DISTRICTS.
Total.
Cash s u b s c r i p t i o n s received
Cash s u b s c r i p t i o n s allotted:
$10 000 or less (in fuU)
$10 100 t o $50,000 (40 p e r cent)
$50 100 t o SlOO 000 (30 ner c e n t ) . .
$100,100 to $500,000 (20 p e r cent)
$500,100 to $1,000,000 (15 per c e n t )
• O v e r $1,000,000 (10 per cent)
T o t a l cash subscriptions allotted
A l l o t m e n t s on e x c h a n g e s for—
V i c t o r y notes
Certificates of i n d e b t e d n e s s
Boston.
New York.
Philadelphia.
Cleveland.
Richmond.
Atlanta.
1 $1,399.851,900
$11.3,390,400
$667,994,100
$103,788,500
$100,355,300
$37,070,800
327,559,600
29,718,200
23,714,500
52,648,600
30,301,500
48,447,600
49,015,900
3,025,200
2,844,600
4,906,800
1,632,500
1,275,300
109,261,700
9,874,300
9,822,400
23,366,000
16,355,700
29,702,000
32,523,900
3,478,000
2,034,800
4,087,400
1,767,500
2,592,600
- 27,785,000
2,192,000
1,488,000
3,335.000
1,850,000
3,550,000
15,865.900
1,072,900 .
534,300
. 1,602,700
1,120,000
150,000
10,077,400
1 224 400
483,800
1,560,000
262,500
550,000
512,390,000
62,700,300
198,382.100-
46,484,200
40,200,000
. 20,345,800
14,158,100
71,397,600
75,192,000'
5,821,600
1,724,000
3,402,700
259,500
1,864,000
586,000
(>)
(')
•
«
$29,608,100
Total
252,060,900
19,508,400
148,589,600:
7,545,600
18,210,700
3,662,200
2,450,000
Total allotments..
764,450,900
82,208,700
344,971,700
54,029,800
.58,410,700
24,008,000
16,608,100
Minneapolis.
K a n s a s City.
Chicago.
Cash s u b s c r i p t i o n s received
Cash s u b s c r i p t i o n s a l l o t t e d :
$10,000 or less (in f\Ul)
$10,100 to $50,000 (40 per cent)
$50,100 t o $100,000 (30 per cent)
$100,100 to $500,000 (20 per cent)
$500,100 t o $1,000,000 (15 per cent)
Over $1,000,000 (10 p e r cent)
T o t a l cash s u b s c r i p t i o n s aUotted
A l l o t m e n t s on exchanges for—
V i c t o r y notes
Certificates of i n d e b t e d n e s s
Total
Total aUotments..
»Data not available.
T
St. Louis.
DaUas.
San Francisco.
Treasury.
$134,942,800
$55,300,100
$33,369, 300
$40,564,900
34,705,300
3,544,400
• 2,219,000
5,602,000
3,808,800
3,112,500
24,625,200
1,633,200
1,737,600
1,719,000
562,500
966,700
5, .522, m
399,200
346,500
1,004,000
600,000
1,679,400
5,954,100
1,016,200
752,500
1,932,700
994,500
1,350,000
2,900,300
379,400^
529,500
980,000
300.000
350,000
52,992,000
31,244,200
9,551,700
12,000,000
5,439,200
18,892,400
13,691,800
8,429,000
22,120,800
5,529,800
1,567,500
7,097,300
1,530,500
712,000
2,242,500
4,449,200
771,500
5,270,700
728,100
,1,034,000
1,762,100
•9,865,400
2,887,500
12,752,900
1,886,000
962,100
2,848,100
38,341;500
11,794,200
17,270,700
• 31,645,300
2,848,100
75,112,800 [
$16,076,800
7,201,300 1
$67,390.800
9,322,300
1,879,000
921,500
2,553,000
1,047,500
^ 3,169,100
•I
O
Pi
H
O
•tei
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o
in
SECRETARY OF THE TREASURY.
EXHIBIT
165
26.
B R I E F DESCRIPTION OF L I B E R T Y BONDS AND VICTORY NOTES.
Form and Denominations.—Liberty Bonds and Victory Notes are
issued in both coupon and registered form in the following denominations: Coupon, $50, $100, $500, $1,000, $5,000, $10,000; registered $50, $100, $500, $1,000, $5,000, $10,000, $50,000, $100,000;
except that the First S^^s are not issued in coupon form in denominations of $5,000 and $10,000, nor in registered form in the denomination of $50.
3^ per cent Liberty Bonds exempt from Federal, State, and local taxation.—Such bonds are exempt, both as to principal and interest,
from all taxation (except estate or inheritance taxes) now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority.
4 per cent and 4 i p^'f cent Liberty Bonds and 4f per cent Victory Notes
exempt\from State and local taxation andfrom normal Federal income
tax.—Siich bonds and notes are exempt, both as to principal and
interest, from all taxation now or hereafter imposed by the United
States, any State, or any of the possessions of the United States,
or by any local taxing authority, except (a) estate or inheritance
taxes, and (&) 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.
4 per cent and 4 i p^f* cent Liberty Bonds also entitled to limited exemptions from Federal income surtaxes and profits taxes.—Pursuant to the
consolidation (effective January 1, 1921) made by the Revenue Act
of 1921, and the proclamation of the President which fixed July 2,
1921, as the date of the termination of the war, such bonds are entitled
to limited exemptions from graduated additional income taxes, commonly known as surtaxes, and excess-profits and war-profits taxes,
now or hereafter imposed by the United States; upon the income or
profits of individuals, partnerships, associations, or corporations, in
respect to the interest on principal amounts thereof, as follows:
During the life of the obligations—
$5,000 in the aggregate of First 4's, First 4i's, First Second
4i's, Second 4's, Second 4i's, Third 4i's, Fourth 4i's, Treasury bonds of 1947-52, Treasury certificates of indebtedness,
and Treasury (war) savings certificates.
Until July 2, 1923—
$30,000 of First Second 4i's.
$125,000 in the aggregate of First 4's, First 4Vs, First Second
4i's, Second 4's, Second 4i's, Third 4i's, and Fourth 4i's.
From July 2, 1923, to July 2, 1926—
$50,000 in the aggregate o{ First 4's, First 4i's, Firfet Second
4i's, Second 4's, Second 4i's, Third 4Vs, and Fourth 4i's.
All Bonds and Notes exempt from taxes in liands offoreign Tiolders.—
Bonds and notes of the United States are, while beneficially owned
by a nonresident alien individual, or a foreign corporation, partnership, or association, not engaged in business in the United States,
exempt, both as to principal and interest, from any and all taxation
166
REPORT ON T H E FINANCES.
now or hereafter imposed by the United States, any State, or any
of the possessions of the United States,, or by any local taxing
authority.
4 i per cent Liberty Bonds and 41 per cent Victory Notes receivable
at par in payment of Federal estate and inheritance taxes.—All such
bonds and notes which have been owned by any person continuously for at least six months prior to the date of his death and which
upon such date constitute part of his estate are receivable by the
United States at par and accrued interest in payment of Federal
estate or inheritance taxes.
Victory Notes receivable in payment of income and profits taxes.—
4f pfer cent Victory Notes are receivable at par, with an adjustment
of accrued interest; in payment of income and profits taxes payable
December 15, 1922; uncalled 4J per cent Victory Notes will likewise
be receivable in payment of income and profits taxes payable March
15,1923.
^^ per cent Oumulative SinTcing Fund.—For the fiscal year beginning July 1, 1920, and for each fiscal year thereafter until all Liberty
Bonds and Victory Notes are retired, the Victory Liberty Loan Act
appropriates, out of any moneya n the Treasury not otherwise appropriated, for the purpose of a sinking fund, an amount equal to the
sum of (1) 2 J per cent of the aggregate amount of such bonds and notes
outstanding on July 1, 1920, less an amo.unt equal to the par amount
of any obligations of foreign Governments held by the United States
on that date, and (2) the interest which would have been payable
during the fiscal year for which the appropriation is made on the
bonds and notes purchased, redeemed, or paid out of the sinking
fund during such year or in previous years.
Conversion Privileges.—First 4's are convertible into First 4J's.
Second 4's are convertible, into Second 4J's. No other conversion
privileges are outstanding.
The principal and interest of all Liberty Bonds and Victory Notes
are payable in United States gold coin of the present standard of
value.
Liberty Bonds and Victory Notes are issued under authority of
the acts of Congress approved April 24, 1917, September ^4, 1917,
April 4, 1918, July 9, 1918, September 24, 1918, and March 3, 1919,
and pursuant to oJtficial Treasury Department circulars, from which
these statements are summarized and to which they are subject.
SECRETARY OE THE TREASURY.
EXHIBIT
167
27.
B R I E F DESCRIPTION OF TREASURY BONDS, NOTES, CERTIFICATES OF INDEBTEDNESS, AND SAVINGS CERTIFICATES.
Form and denominations.—Treasury Bonds of 1947-52 are issued
in both coupon and registered form in the following denominations:
Coupon, $100, $500, $1,000, $5,000, $10,000; registered, $100, $500,
$1,000, $5,000, $10,000, $50,000, $100,000.
Treasury Notes are issued only in coupon form, and in the following
denominations: $100, $500, $1,000, $5,000, $10,000, $100,000.
Treasury Certificates of Indebtedness are issueci only in coupon
form, and in the following denominations: $500, $1,000, $5,000,
$10,000, $100,000.
Treasury Savings Certificates are issued only in registered form,
with maturity values of $25, $100, $1,000.
Treasury Bonds, Treasury Notes, Treasury Certificates of Indebtedness, and Treasury Savings Certificates, exempt from State and local
taxation and from normal Federal income tax.—All such bonds, notes,
and certificates are exempt, both as to principal and interest, from all
taxation now or hereafter imposed by the United States, any State,
or any of the possessions of the United States, or by any local taxing
authority, except (a) estate or inheritance taxes, and (6) graduated
additional income taxes, commonly known as surtaxes, and excessrofits and war-profits taxes, now or hereafter imposed by the
Fnited States, upon the income or profits of individuals, partnerships,
associations^ or corporations. The iriterest on an amount of 4 and
4J per cent Liberty Bonds, Treasury Bonds, Treasury Certificates of
Indebtedness, and Treasury (War) Savings Certificates, 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 subdivision (Jb) above.
All Bonds, Notes, and Certificates of Indebtedness exempt from taxes
in liands of foreign holders.—Bonds, notes, and certificates of indebtedness of the United States are, while beneficially owned by a nonresident alien individual, or a foreign corporation, partnership, or
association, not engaged in business in the United States, exempt,
both as to principal and interest, from any and all taxation now or
hereafter imposed by the United States, any State, or any of the
possessions of the United States, or by any local taxing authority.
Treasury Bonds and Treasury Notes bearing interest at a higher rate
than 4 V^'^ ^^^^ P^^ annum, receivable at par in payment of Federal
estate and inheritance, taxes.—All such bonds and/ notes which have
been owned by any person continuously for at least six months
prior to the date of his death and which upon such date constitute
part of his estate are receivable by the United States at par and accrued interest in payment of Federal estate or inheritance taxes.
Treasury Notes and Certificates of Indebtedness receivable in payment
of income and profits taxes.—Treasury Notes are receivable at par, with
an adjustment of accrued interest, during such time and under such
rules and regulations as shall be prescribed or approved by the
Secretary of the Treasury, in payment of income and profits taxes
payable at or within six months before the maturity of the notes.
?
168
REPORT ON THE FINANCES.
Treasury Certificates of Indebtedness are upon similar terms and conditions acceptable in payment of income and profits taxes payable
at the maturity of the certificates.
Treasury (War) Savings Certificates of any one series not to be held to
an amount exceeding $5,000 {maturity value) .^-Any one person at any
one time may hold Treasury (War) Savings Certificates of any one
series to an aggregate amount not exceeding $5,000 (maturity value).
The principal and interest of Treasury bonds, notes, and certificates of indebtedness are payable in United States gold coin of the
present standard of value.
Treasury Bonds, Treasury Notes, Treasury Certificates of Indebtedness, and Treasury (War) Savings Certificates are issued under authority of the acts of Congress approved April 24, 1917, September 24,
1917, April 4, 1918, July 9, 1918, September 24, 1918, March 3, 1919,
and November 23, 1921, and pursuant to official Treasury Deparment
circulars, from which these statements are, summarized and to which
they are subject.
EXHIBIT
28.
[Department Circular No. 307. Loans and Currency.]
U N I T E D STATES OF AMERICA—FOUR AND ONE-QUARTER P E R
CENT T R E A S U R Y B O N D S OF 1 9 4 7 - 1 9 5 2 , D A T E D A N D B E A R I N G
I N T E R E S T F R O M O C T O B E R 1 6 , 1 9 2 2 , D U E O C T O B E R 16, 1 9 6 2 .
R E D E E M A B L E AT T H E O P T I O N OF T H E U N I T E D S T A T E S AT P A R
A N D A C C R U E D I N T E R E S T ON A N D A F T E R O C T O B E R 1 5 , 1 9 4 7 .
I N T E R E S T P A Y A B L E A P R I L 15 AND OCTOBER 15.
The Secretary of the Treasury invites subscriptions, at par and
accrued interest, from the people of the United States, for four and
one-quarter per cent Treasury bonds of 1947-1952, of an issue of gold
bonds of the United States authorized b y the Act of Congress approved September 24, 1917, as amended. The amount of the offering will be $500,000,000, or thereabouts, with the right reserved to
the Secretary of the Treasury to allot additional bonds up to a limited amount to the extent that 4 | per cent Victory notes or Treasury
certificates of indebtedness of Series TD or TD2-1922 are tendered
in payment.
DESCRIPTION OF BONDS.
The bonds will be dated October 16, 1922, and will bear interest
from that date at the rate of four and one-quarter per cent per
annum payable April 15 and October 15 in each year, ori a semiannual basis. The bonds will mature October 15, 1952, but may be
redeemed at the option of the United States on and after October 15,
1947, in whole or in part, at par and accrued interest, on any interest
day or days, Ori four months' notice of redemption given in such
manner as the Secretary of the Treasury shall prescribe. In case of
partial redemption the bonds to be redeemed will be determined by
such method as may be prescribed by the Secretary of the Treasury.
From the date of redemption designated in any. such notice, interest
on the bonds called for redeiription shall cease. The principal and
interest of the bonds will be payable in United States gold coin of
the present standard of value.
SECRETARY OE THE TREASURY.
169
Bearer bonds with interest coupons attached will be issued in
denominations of $100, $500, $1,000, $5,000, and $10,000. Bonds
registered as to principal and interest will be issued in denominations of $100, $500, $1,000, $5,000, $10,000, $50,000, and $100,000.
Provision will be made for the interchange of bonds of different
denominations and of coupon and registered bonds and for the
transfer of registered bonds, without charge by the United States,
under rules and regulations prescribed by the Secretary of the
Treasury.
The bonds shall be exempt, both as to principal and interest, from
all taxation now or hereafter imposed by the' Uriited States, any
State, or any of the possessions of the United States, or by any. local
taxing authority, except (a) estate or inheritance taxes, and (6)
graduated additional income taxes, commonly known as surtaxes,
and excess-profits and war-profits taxes, now. or hereafter imposed
by the United States, upon the income or profits of individuals,
partnerships, associations, or corporations. The interest on an
amount of bonds and certificates authorized by said act approved
September 24, 1917, and amendments thereto, the principal of
which does-not exceed in the aggregate $5,000, owned by any individual, partnership, association, or corporation, shall be exempt
from the taxes provided for in clause (b) above.
Any of the bonds which have been owned by any person, continuously for at least six months prior to the date of his death, and
which upon such date constitute part of his estate, shall, under rules
and regulations prescribed by the Secretary 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 bonds will be acceptable to
secure deposits of public moneys, but do not bear the circulation
privilege and are not entitled to any privilege of conversion.
APPLICATION, ALLOTMENT, AND PAYMENT.
Applications will be received at the Federal Reserve Banks, as
fiscal agents of the United States. Banking institutions generally
will handle applications for subscribers, but only the Federal Reserve
Banks are authorized to act as official agencie."^
Within the limitation on the amount of the offering, applications
from any one subscriber for an amount of bonds not exceeding $10,000
will be allotted in full, and allotments thereon m a y b e made upon
application. Applications for amounts in excess of $10,000 ^vill
be received subject to allotment. The right is reserved to reject
any subscription for an amount in excess of $10,000, and to allot
less than the amount of bonds applied for and to close the subscriptions at any time without notice. The Secretary of the Treasury
also reserves the right to make allotment in full upon applications
for smaller amounts, and to make reduced allotments upon, or to
reject, applications for larger amounts, and to make classified allotments and allotments upon a graduated scale; and his action in these
respects will be final.
r a y m e n t at par and accrued interest'for any bonds allotted-must
be made on or before October 16, 1922, or on later allotment; provided, however, that persons who desire to make payment in instal
170
REPORT ON THE FINANCES.
ments may p a y 50 per cent on October 16, 1922, or on later allotment, and the balance on November 15, 1922, with accrued interest
to that date on the deferred instalment. Any qualified depositary
will be permitted to make payment by credit for bonds allotted to
it for itself and its customers up to any amount for which it shall be
qualified in excess of existing deposits, when so notified by the Federal
Reserve Bank of its district, except upon subscriptions for which
Victory notes or Treasury certificates of indebtedness of Series TD or
TD2^1922 are tendered in payment. Treasury certificates of indebtedness of Series D-1922, maturing October 16, 1922, of Series TD-1922
and TD2-1922, both maturing December 15, 1922 (with any unmatured coupons attached), and Victory notes of the 4 | per cent series,
whether or not called for redemption, will be accepted at the Federal
Reserve Banks at par, with an adjustment of accrued interest, as of
October 16, 1922,* iri payment for any Treasury bonds of 1947-1952
now offered which shall be subscribed for and allotted. Victory
notes in coupon form must have all urimatured coupons attached,
and if in registered form must be duly assigned to the Secretary pf tb©
Treasury for redemption, in accordance with the general regulations
of the Treasury Department governing assignments. Payments
must be made when and as herein provided under penalty of forfeiture of any instalment previously paid and of all right and interest
in the bonds allotted.
As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions and to make
allotments thereon on the basis and up to the amounts indicated
by the Secretary of the Treasury to the Federal Reserve Banks of
the respective districts. Allotment notices will be sent out promptly
upon allotment, and the basis of allotment will be publicly announced.
FURTHER DETAILS.
Bonds will be delivered promptly after allotment and upon payment, and coupon bonds may be delivered prior to October 16, 1922,
to subscribers for amounts not in excess oi $10,000 who make payment in fullupon allotment. The Federal Reserve Banks may issue
interim receipts pending delivery of the definitive bonds.
Further details may be announced by the Secretary of the Treasury from time to time, information as to which, as well as forms for
application, may be obtained froni the Treasury Department,
Division of Loans and Currency, Washington, D. C., or from any
Federal Reserve Bank.
A. W.
MELLON,
Secretary of the Treasury.
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,
October 9, 1922.
To
THE
INVESTOR:
Almost any banking institution in the United States will handle your subscription
for you, or you may make subscription direct to the Federal Reserve Bank of your
district. Your special attention is invited to the terms of subscription and allotment
as stated above, and to the fact that 4J per cent Victory notes and Treasury certificates of Series TD or TD2-1922 may be tendered in payment. Application blanks
may be obtained upon application from the Treasury Department^ Division of Loans
and Currency, Washington, D. C , or any Federal Reserve Bank or branch.
SECRETARY O F T H E TREASURE
EXHIBIT
171
29.
LETTER OF SECRETARY OF THE TREASURY, DATED OCTOBER 9,
1922, TO BANKING INSTITUTIONS, ACCOMPANYING THE OFFERING OF FOUR AND ONE-QUARTER P E R CENT TREASURY BONDS
OF 1947-1952, DATED OCTOBER 16, 1922.
OCTOBER 9,
1922.
: I am sending you herewith a copy of the official
TreasuryDepartment Circular^ announcing the offering of 4^ percent
Treasury bonds of 1947-52 for which subscription books open to-day.
The offering is for $500,000,000, or thereabouts, with the right
reserved to the Secretary of the Treasury to allot additional bonds to
the extent that 4 | per cent Victory notes or Treasury certificates
maturing December 15th are tendered in paynient.
The new bonds will be 25/30 year bonds, dated October 16, 1922,
maturing October 15, 1952, and redeemable at the option of the
United States on and after October 15, 1947. The bonds will be
issued in both coupon and registered form, in denominations of $100
and upwards. Applications will be received through the Federal
Reserve Banks, and the Treasury is prepared to make deliveries
promptly upon allotment, and payment. Subject to the limitations
on the amount of the offering, allotments will be made in full, in the
order of receipt of application, upon subscriptions for amounts not
exceeding $10,000 for any one subscriber, and upon subscriptions for
which either 4f per cent Victory notes or Treasury certificates
maturing December 15th are tendered in payment. Other applications for amounts exceeding $10,000 for any one subscriber will be
received subject to allotment.
This is a refunding issue, and it affords a particularly favorable
opportunity to holders of 4 | per cent Victory notes to acquire a longtime Government bond on attractive terms in place of Victory notes
which will mature or be redeemed within the next few months. I
am, therefore, addressing this letter to the heads of all banking
institutions in the country, and asking you to provide every possible
facility for investing in the new bonds. I hope that you will also
make a special effort to bring the offering to the attention of your
customers, large and small, for it is the Treasury's desire to secure the
widest possible distribution of the bonds among investors.
I think you will be interested in this connection to know what has
already been accomplished in the refunding of the short-dated debt,
and what still remains to be done. On April 30, 1921, when the
" Treasury first announced its refunding program, the gross public
debt, on the basis of daily-Treasury statements, amounted to about
$24,000,000,000, of which over $7,500,000,000 was maturing within
about two years. On September 30, 1922, the total gross debt on the
same basis stood at about $22,800,000,000, and of the early maturing
debt about $4,000,000,000 had already been retired or refunded,
chiefly into short-term Treasury notes with maturities spread over
the next four fiscal years. There will fall due this fiscal year about
$1,100,000,000 of Treasury certificates of indebtedness, about
$625,000,000 maturity value of War-Savings Certificates of the
Series of 1918, and about $1,800,000,000 of Victory notes. Of the
DEAR SIR
iSee Exhibit 28, p . 168.
172
REPORT ON T H E FINANCES.
Treasury certificates, about $48,000,000 represents Pittman Act certificates which will be retired this year through the recoinage of silver
bullion, while about $100,000,000 of loan certificates maturing
October 16, 1922, will be paid out of funds already in hand. The
retirenient of these certificates will leave only tax certificates outstanding, and it will in any event continue to be desirable, with
income and profits tax payments as large as they are, for the Treasury
to have outstanding at least $1,000,000,000 of tax certificates in
amounts and with maturities conforming. to the quarterly tax payments. This correspondingly reduces the amount of necessary
refunding into other securities.
After October 16, 1922, the next maturities fall on December 15th,
and include about $870,000,000 face amount of 4 | per cent Victory
notes called for redemption, and about $420,000,000 of maturing
tax certificates of Series TD and TD2-1922, against which the
Treasury will receive in December about $250,000,000 of income and
profits taxes. On January 1, 1923, the $625,000,000 of War-Savings
Certificates become payable, but the Treasury has already announced,
as you know, a new offering of Treasury Savings Certificates with a
view to refunding as much as possible of the maturity into obligations of the same general character and with the same appeal to the
needs of the small investor. The Treasury will shortly announce
special facilities for the exchange of maturing War-Savings Certificates for the new Treasury Savings Certificates, and plans in this
manner to provide for a substantial part of the War-Savings maturity.
The only Treasury certificates maturing in the second half of the fiscal
year 1923 are about $266,000,000 on March 15, .1923, and about
$273,000,000 on June 15, 1923, both of which are covered by the
income and profits tax payments estimated for those dates. On
May 20, 1923, the remaining $930,000,000 of 4f per cent Victory
notes will mature according to their terms.
The maturities which remain and have to be refunded the Treasury
will meet through issues of refunding securities, properly adjusted to
market conditions, and I believe it will be able to meet them, as it
has in the past, without disturbance to the markets and without
strain on the financial machinery. During the course of the refunding
operations which have been in progress the Treasury has issued from
time to time Treasur}'- certificates of indebtedness, Treasury notes
and Treasury Savings Certificates, all relatively short-term. These
operations have been successful and have been accomplished without
disturbance to the market for outstanding securities. With the
announcement of the bonds now offered, the Treasury is adding to
its list a refunding issue of long-time bonds, on a basis which should
prove particularly attractive to investors. These bonds will provide, through exchanges and otherwise, for a substantial part of the
heavy maturities falling on December 15th, and the success of the
offering will leave only a normal amount of financing to be placed
on that date.
I t is four years since the Treasury has offered to the people of the
United States an issue of long-time Government bonds. During
that period it has been financing itself on a short-term basis, and it
has succeeded, with your cooperation, in placing with investors
throughout the country a great volume of Treasury certificates and '
Treasury notes. Now that the time has come for a longer-term
173
SECRETARY OF THE TKEASURY.
operation, I am looking forward with confidence to your continued
support, and hope that, as with previous off'erings of Goverriment
securities, you will give your best efforts to the distribution of the
new Treasury bonds among investors.
Cordially yours,
A.
W.
MELLON,
Secretary ofthe Treasury.
T O THE PRESIDENT OF THE BANKING INSTITUTION ADDRESSED.
EXHIBIT
30.
[Treasury Department, Loans and Currency, Form P. D. 736.]
\ A P P L I C A T I O N F O R 434 P E R C E N T T R E A S U R Y B O N D S O F 1 9 4 7 - 5 2 .
Date: October
Tp the
SECRETARY OF THE T R E A S U R Y :
The undersigned hereby applies for $
face amount of TJnited States of
America Four and One Quarter Per Cent Treasury Bonds of 1947-52, and agrees to
make payment at par for any bonds allotted upon this application, with accrued
interest from October 16, 1922, all in accordance with the provisions of Treasury
Department Circular No. 307, dated October 9, 1922. ^.
Payment for bonda'allotted upon this application will he made in.the manner indicated below:
Cash
Treasury Certificates,
Series D-1922.
Victory 4f''s,
(Coupon)
Treasury Certificates,
Series TD-1922.
Victory 4|'s,
(Registered)
Treasury Certificates,
Series TD2-1922.
(If payment is to be made in more than one of the above forms, the amount tp b e
tendered in each should be indicated opposite the respective items.)
There is transmitted herewith, in j ^ . . IV payment for the bonds applied for,
(Strike out one.)
(Describe remittance. If Victory notes or Treasury certificates are presented, they should be scheduled
on the reverse of this form.)
The undersigned desires ^>.ioq^£rpd f ^^^^^ ^^ ^ ^ denominations indicated below:
(Strike out class not desired.)
Number of pieces
Denomination
Par amount
^100
500
1', 000
5,000
10, 000
* 50,000
* 100,000
Total face amount,
^ Registered bonds only;
$
(Which must agree with amount of bonds applied'for)
174
REPORT ON THE FINANCES.
INSTRUCTIONS. WITH RESPECT TO REGISTERED BONDS.
To be filled Registered bonds are to be inscribed in the name of
'° ^f^
Post Oflice Address:
:
Registered
bonds
arede.sired.
(Street and number)
.
(City or town)
(State)
Autograph signature of applicant:
* Post Oflice Address:
(Street and number.)
(City or town)
(State)
* Unless otherwise indicated below, the Treasury Bonds of 1947-52 issued upon this application will be
forwarded to the address of the applicant as above given.
Special delivery instructions, if any:
This application should be transmitted through the subscriber's own bank, or other
agency acting in his behalf, or it may be presented direct to the Federal Reserye
Bank of his district, or a branch thereof, or to the Treasury Department, Di\dsion bf
Loans and Currency, Washington, D. C.
EXHIBIT
31.
LETTER OF , SECRETARY OF THE TREASURY TO HOLDERS OF
VICTORY NOTES, ACCOMPANYING THE OFFERING OF FOUR AND
ONE-QUARTER P E R CENT TREASURY BONDS OF 1947-1952,
DATED OCTOBER 16, 1922.
OCTOBER 9,
1922.
I am sending you herewith a copy of the official
Treasury Department Circular ^ announcing the new offering of 4J per
cent Treasury bonds of 1947-1952. The subscription books open
to-day, and 4f per cent Victory notes^ whether or not called for
redemption, and Treasury Certificates of the series maturing December 15, 1922, will be accepted in payment, on the terms stated in the
circular. The new bonds will be, 25/30 year bonds, dated October 16,
1922, maturing October 15, 1952, and redeemable at the option of the
United States on and after October 15, 1947. The bonds will be
issued in both coupon and registered form, in denominations of $100
and upwards. The Treasury is prepared to make deliveries promptly
upon allotment and payment.
This offering of Treasury bonds affords a particularly favorable,
opportunity to holders of 4 i per cent Victory notes to acquire a longtime Government^bond on attractive terms in place of Victory notes
which will mature or be redeemed within the next few months. All 4f
er cent Victory notes bearing the distinguishing letters A, B, C, D,
", or F prefixed to their serial numbers have, as you know, been called
for redemption on December 15, 1922, ahd will cease to bear interest
on that date, while the remaining 4 | per cent Victory notes mature on
May 20, 1923, according to their terms. Victory notes tendered in
payment, if in registered form, must be duly assigned to ^^The
Secretary of the Treasury for redemption,^' before some officer
authorized to witness assignments of United States registered bonds,
in accordance with the,general regulations of the Treasury Department governing assignments. Coupon Victory notes must have the
December 15, 1922, and May 20, 1923, coupons attached.DEAR SIR:
i
1 See Exhibit 28, p . 168.
SECRETARY OE THE TREASURY.
175
Holders of Victory notes who wish to invest in the new bonds
should make prompt application through their own banks, or, if
desired, direct to the Federal Reserve Bank of the district.
Very truly yours,
A. W.
MELLON,
Secretary of the Treasury.
T O THE HOLDER OF VICTORY NOTES ADDRESSED.
EXHIBIT
32.
[Department Circular No. 277. Public Debt.]
REDEMPTION
OF
3%
P E R CENT VICTORY
MATURITY.
NOTES
BEFORE
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,
Washington, February 9, 1922.
To Holders of Victory Notes and Others Concerned:
The Secretary of the Treasury hereby gives notice that, in order to
facilitate the refunding of the Victory Liberty Loan, all Victory notes^
of the 3 | per cent series are qalled for redemption on June 15, 1922,
and may be redeemed before that date at the option of the holder,
upon the terms and conditions and subject to the rules and regulations
hereinafter prescribed.
1. Callfor Redempition of 31 per cent Victory Notes.—All of the 3f
per cent series of United States of America Convertible Gold Notes of
1922-23, otherwise known as 3f per cent Victory notes, are hereby
called for redemption on June 15, 1922, pursuant to the provision for
redemption contained in the notes and in Treasury Department Circular No. 138, dated April 21, 1919, under which the notes were originally issued. Interest on all Victory notes of the 3 | per cent series
will cease on said redemption date, June 15, 1922. Holders of the
notes hereby called for redemption, upon presentation and surrender
thereof as hereinafter provided, will be entitled to have the notes redeemed and paid at par, with an adjustment of accrued interest, on
said redemption date. Accrued interest to said date will be covered
as to coupon notes by the coupons due June 15, 1922, which should be
detached and collected in ordinary course when due, and as to registered notes will be covered by interest checks in the usual manner.
2. Suspension and Termination of Victory Note Conversion Privilege.—In view of the call for the redemption of all 3f per cent Victory
notes on June 15, 1922, and pursuant to the provisions of said Treasury Department Circular No. 138, the privilege of conversion of Victory notes of either series into Victory notes of the other series is
hereby suspended from February 9, 1922, to June 15, 1922, both inclusive, and on June 15, 1922, will terminate. Victory notes accordingly cease to be interconvertible, effective February 9, 1922, and on
and after that date no conversions of the notes may be made.
3. Presentation and Surrender for Redemption.—{a) Coupon Notes.
Any 3 | per cent Victory notes in coupon lorm should be presented
and surrendered for redemption to the Treasurer of the United States
in Washington, or to any Federal Reserve Bank or branch, and must
have the coupons due December 15, 1922, and May 20, 1923, attached.
The notes must be deliyered in every case at the expense and risk of
176
REPORT ON THE FINANCES.
the holder, and should be accojmpanied by appropriate written advice
(see Form P. D. 590, hereto attached). In the event that notes are
presented for redemption with the December 15, 1922, or May 20,
1923, coupons detached, the notes will nevertheless be redeemed, but
the full face amount of any missing coupons will be deducted. The
amounts so deducted will be held in the Treasury to provide for the
redemption of such missing coupons as may subsequently be presented.
(6) Registered Notes. Any 3 | per cent Victory notes in registered
form must be duly assigned to the Secretary of the Treasury for redemption, in accordance with the general regulations of the Treasury
Department governing assignments, and should be presented to the
Secretary of .tne Treasury, Division of Loans and Currency, Washington, or to any Federal Reserve Bank or branch thereof. The notes
must be delivered at the expense and risk of the holder, and should
be accompanied by appropriate written advice (see Form P. D. 591,
hereto attached). Unless instructions are received to the contrary,
remittance covering payment will be sent to the last address of record
of the registered holder of the siirrendered notes. In case it is desired to have payment of registered notes thus presented for redemption made to anyone other than the registered holder, the notes may
.be assigned to ^^ The Secretary of the Treasury for redemption for account of
^
''
'
(Here insert the name and address of the payee desired.)
(c) Presentation Prior to June 15, ,1922. In order to facilitate payment of the notes hereby called for redemption, any 3 | per cent Victory notes may be presented and surrendered in the manner herein
prescribed at any time in advance of June 15, 1922, for redemption
and payment on that date.
4. Redemption of 3^ per cent Victory Notes Before June 15, 1922, at
Holder^s Option.-^In order to meet the convenience of Victory note
holders and facilitate the redemption of 3 | per cent Victory notes, the
Federal Reserve Banks and the Treasurer of the United States have
been authorized, effective this date, to redeem before June 15, 1922,
at the option of the holder, at par and accrued interest to the date of
optional redemption, any of tne 3f per cent Victory notes hereby
called for redemption. Any holder who desires to effect redemption
in accordance herewith prior to June 15, 1922, should make written
request therefor and should present and surrender the notes in the
manner provided in paragraph 3 hereof, except that coupon notes
must in that event have all unmatured coupons attached, including
the coupons due June 15, 1922. Appropriate forms of written request will be found in Forms P. D. 590 and 591, hereto attached.
5. Miscellaneous.—^Any further information which may be desired
as to the redemption of Victory notes uiider this circular may be obtained from the Treasury Department, Division of Loans and Currency, or from any Federal Reserve Bank or branch. The Secretary
of the Treasury may at any time or from time to time prescribe supplemental or amendatory rules and regulations on the matters covered
by this circular.
A. W. MELLON,-
Secretary of the Treasury.
177
SECRETARY OF THE TREASURY.
TREASURY DEPARTMENT,
Division of Loans and Currency.
Form P. D. 590.
FORM OF ADVICE TO ACCOMPANY 3J PER CENT VICTORY NOTES IN COUPON FORM PRESENTED FOR REDEMPTION.
To'the F E D E R A L R E S E R V E B A N K O"F
To the T R E A S U R E R OF THE U N I T E D STATES, Washington, D . C :
Pursuant to Department Circular No. 277, dated February 9, 1922, the undersigned
presents and surrenders herewith for redemption .$
, face amount,
3f pei* cent Victory notes i n couppji form, with coupons due December 15, 1922, and
May20, 1923, attached, asfollows:
Number of nbtes.
Denomination.
Serial numbers of notes.
Face amount.
S50
100
500
1,000
5,000
10,000
Total-...
and requests that remittance covering payment therefor be forwarded to the undersigned at the address indicated below,
(Signature)
(Address in full).
(Date)
R E Q U E S T F O R R E D E M P T I O N P R I O R T O JUNE 15, 1922.
[To be used only in the event applicant elects to exercise option of prior redemption.)
In connection with the foregoing, the undersigned requests immediate redemption
of the above-described Victory notes prior to June 15, 1922, at par and accrued interest
to date of such optional redemption. I n addition to the coupons dated December 15,
1922, and May 20, 1923, the notes surrendered have attached thereto coupons dated
June 15, 1922.
(Signature)
14263—FI 1922-
-12
178
REPORT ON THE FINANCES.
TREASURY DEPARTMENT,
Division of Loans and Currency.
Form P. D. 591.
/
c
^
FORM OF ADVICE TO ACCOMPANY 3 j PER CENT VICTORY NOTES IN REGISTERED FORM PRESENTED FOR REDEMPTION.
To the FEDERAL RESERVE BANK OF
To the SECRETARY OF THE TREASURY,
Division pf Loans and Currency,
Washington, D. C:
Pursuant to Department Circular No. 277, dated February 9, 1922, the undersigned
presents and surrenders herewith for redemption $
,
, face amount, 3 | per
cent Victory notes in registered form, duly assigned to the ' 'Secretary of the Treasury
for redemption," as follows:
Number of notes.
Denomination.
Serial numbers of notes.
Face amount.
$50
100
500
1,000
5,000
10,000
50,000
100,000
Total
and requests that remittance covering payment therefor be forwarded to the undersigned at the address indicated below.
(Signature)
(Address in full).
(Date).
R E Q U E S T F O R R E D E M P T I O N P R I O R T O JUNE 15,
1922.
[To be used only in the event applicant elects to exercise option of prior redemption.]
In connection with the foregoing, the undersigned requests immediate redemption
of the above-described Victory notes prior to June 15,1922, at par and accrued interest
to the date of such optional redemption.
(Signature)
f
'
o
SECRETARY OE T H E TREASURY.
179
E X H I B I T 33.
[Supplement to Department Circular No. 277 of February 9,1922, Public Debt.]
BEDEMPTION
OF
3J^ P E R CENT VICTORY
MATURITY.
NOTES
,. ' -
BEFORE
TREASURY DEPARTMENT,
O E F I C E : OP THE S E C R E T A R Y ,
,
• Washington, May 5, 1922.}:,
To Holders of Victory Notes and Others Concerned:.
Treasury Department Circular No. 277, dated February 9, 1922,
calling 3f per cent Victory notes for redemption before maturity, is'
hereby amended and supplemented as follows:
Redemption of registered 5J per cent Victory notes on Juhe 15, 1922.,
or before that date at holder^s option.—Inasmuch as 3 | per cent Victory
notes are called for redemption on June 15, 1922, the transfer books
for the registered notes of this issue will not be closed on May 15,1922, and the usual semiannual interest checks will not be prepared
and mailed by the Treasury Departmeiit on June 15, 1922, to the
registered holders of record. Accrued interest on such notes to
June 15, 1922, or, if presented for redemption prior to that date,
to the date of optional redemption, will be paid by the Federal Reserve Banks or the Treasurer of the United States simultaneously '
with the pa3mient on account of principal.
A.'W. MELLON, '
•"• •'
' •
Secretary of the Treasury.
E X H I B I T 34,
[Department Circular No. 299. Public Debt.]
P A R T I A L R E D E M P T I O N O F 4 M P E R C E N T ViCTORY NOTES BEFORE
MATURITY.
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,
'
Washington, July 26, 1922:
To Holders of 4 i Per Cent Victory Notes and Others Concerned:
The Secretary of the Treasury hereby gives notice that, in order
to facilitate the refunding of the Victory Liberty Loan and proyide
for the retirement of part of the outstandirig notes before maturity,
all 4|- per cent Victory notes which, bear; the distinguishing letters
A, B, C, D, E, or F, prefixed to their serial numbers, are called for
redemption on December 15, 1922, and may be surrendered for redemption before that date at the option of.the holder, upon the terms
and conditions and subject to the rules and regulations hereinafter
prescribed:
.
1. Callfor Redemption.—All 4 | per cent Victory notes, otherwise
known as United States of America Gold Notes of 1922-23, which
bear the distinguishing letters A, B, C, D, E, or F, prefixed to their
serial numbers, having been designated for the purpose by lot in the
manner prescribed by the Secretary of the Treasury, are called for
redemption on December 15, 1922, pursuant to the proyision for
redemption contained in the notes and in Treasury Department
'
180
,
•
.
^
REPORT,ON THE FINANCES.
Circular No. 138, dated April 21, 1919, under which the notes were
originally issued. Interest on all the 4 | per cent Victory notes thus
called for redemption will cease on said redemption date, December 15,
1922. Holders of the notes hereby caljed for redemption, upon.presentation and surrender thereof as hereinafter provided, will be entitled to have the notes redeemed and paid at par, with an adjustment
of accrued interest, on said redemption date. Accrued interest to
said date will be covered as to coupon notes by the coupons due
. December 15, 1922, which should be detached'and collected in ordinary course when due, and as to registered notes will be covered by
interest payments to be made simultaneously with the payments on
account of principal. The transfer books for registered notes hereby
called for redemption will not close on November 15, 1922, but will
remain open until December 15, 1922. Victory notes of the 4f per
cent series bearing the distinguishing letters G, H, I, J, K, or L,
prefixed to their serial numbers, are not in any manner affected by
this call for redemption, and will become due and payable as to principal on May 20, 1923, according to their terms.
2. Presentation and Surrender for Redemption.— {a) Coupon Notes.
Any 4f per cent Victory notes in coupon form which are called for
redemption hereunder should be presented and surrendered for
redemption to the Treasurer of the United States in Washington, or
to any Federal Reserve Bank or branch, and must have the coupons
due May 20, 1923, attached. The notes must be delivered in every
case at the expense and risk of the holder, and should be accompanied
by appropriate written advice (see Form P. D. 726, hereto attached).
In the event that any notes iare presented for redemption with the
May 20, 1923, coupon detached, the notes will nevertheless be redeemed, but the fml face amount of any such missing coupons will
be deducted. The amounts so deducted will be held in the Treasury
to provide for the redemption of such missing coupons, if subsequently presented.
(&) Registered Notes.—Any 4 | per cent Victory notes in registered
form which are called for redemption hereunder should be duly assigned to ^^The Secretary of the Treasury for redemption," in accordance with the general regulations of the Treasury Department governing assignments, and should be presented and surrendered for redemption to the Treasury Department, Division of Loans and Currency, Washington, D . C , or to any Federal Reserve Bank or branch.
The notes must be deliyered at the expense and risk of. the holder,
and should be accompanied by appropriate written advice (see
Form P. D. 727, hereto attached). If assignment for redemption is
made by the registered owner, payment of principal and interest to
the date of redemption will be made to the registered owner at his
last address of record, unless written instructions to the contrary are
received from the registered owner. If assignment for redemption
is made by an assignee holding under proper assignment from the
registered owner, payment of principal and interest to the date of redemption will be made to such assignee at the address specified in
the form of advice. Assignments in blank, or other assignments
haying the same effect, will also be recognized, and in that event
payment will be made to the person surrendering the notes for redemption, since under such assignments thie notes become in effect
payable to bearer. In case it is desired to have payment of regis
SECRETARY OF THE TREASURY.
181
tered notes presented for redemption made to someone other than
the registered owner, without intermediate assignments, the notes may
be assigned to ^'The Secretary of the Treasury for redemption for
account of
," but as(Here insert; name and address of payee desired.)
signments in this form must be conipleted before acknowledgment
and not left in blank.
(c) Presentation Prior to December 15, 1922.—In order to facilitate
payment of the notes hereby called for redeinption, any such 4f per
cent Victory notes may be presented and surrendered in the rnanner
herein prescribed at any time in advance of December 15, 1922, for
redemption and payment on that date with interest to such redemption date.
3. Redemption of CaUed 41 Fer Cent Victory Notes Before December_
15, 1922, at Holder''s Option.—In order to meet the convenience of
Victory note holders and facilitate the redemption of called 4 | per
cent Victory notes, the Federal Reserve Banks and the Treasurer of
the United States have been authorized, effective this date, to redeem
at any time before December 15, 1922, at the option of the holder, at
par and accrued interest to the date of optional redemption, any of
the 4f per cent Victory notes hereby called for redemption. Any
holder who desires to surrender his notes in accordance herewith for
redemption prior to December 15, 1922, should make appropriate
written request therefor and should present and surrender the notes
in the manner provided in paragraph 2 hereof, except that coupon
riotes must in that event have all unmatured coupons attached^ inr
eluding the coupons due December 15, 1922. Appropriate forms of
written request will be found in Forms^ P. D. 726 and 727, hereto attached.
4. Miscellaneous.—Any further information which may be desired
as to^the redemption of Victory notes under this circular may be obtained from the Treasury Department, Division of Loans and Currency, Washington, D. C., or from any Federal Reserve Bank or
branch. The Secretary of the Treasury may at any time or from
time to time prescribe supplemental or amendatory rules and
regulations governing the matters covered by this circular.
A. W. MELLON,
Secretary ofthe Treasury.
182
R E P O R T O N T H E FINANCES.
TREASURYDEPARTMENT. '
/
BlvisioN OF LOANS AND CXJRBENCY.
- •;. .
.. Form P . D. 726.
..
, V.
FoRMi OF ADVICE TO ACCOMPANY 4f P E R CENT YICTORY N O T E S IN COUPON F O R M
P R E S E N T E D FOR REDEMPTION.
T o THE F E D E R A L R E S E R V E B A N K OF
, . . ' • .
o
r
.
^
,
.
•
•
•
TREASURER OF THE U N I T E D STATES, Washington, D . C :
,.Pursuant to the provisions of Tr6astuy Department Circular No. 299, dated July
26, 1922, the undersigned presents and surrenders herewith for redemption $
face amount, of 4f per cent Victory-notes in coupon form, with coupon due May 20,
1923, attached,, as follows:
. . .
N u m b e r of notes.
Denomination.
•.,;
*;*
Serial n u m b e r s of notes.
Face amount.
" • - • $50
r 100
500
1,000
5,000
10,000
Total"....
•
and requests that remittance covering, payment therefor be forwarded to the undersigned at the address indicated below.
(Signature)
(Address in full)
'
(Date)
^
REQUEST FOR REDEMPTION PRIOR TO DECEMBER 15, 1922.
[To be used only in the event applicant elects to exercise option of prior redemption.]
In connection with the foregoing, t h e undersigned requests immediate redemption
of the above-described Victory notes prior to December 15, 1922, a t par and ^ c r u e d
interest to date of such optional redemption. I n addition to the coupon dated May
20, 1923, the notes surrendered have attached thereto t h e coupon dated December
15, 1922.
(Signature)
•.
(Date)
183
SECEETARY OF THE TREASURY.
TREASURY DEPARTMENT,
DIVISION OF LOANS AND CURRENCY.
Form P. D. 727.
,
.
.
FORM OF ADVICE TO ACCOMPANY 4 | PER CENT VICTORY NOTES IN REGISTEREJ^ FORM
P R E S E N T E D FOR REDEMPTION.
To THE FEDERAL- R E S E R V E B A N K OF
-
•
or,
••
•
....,
••
;
'
.
TREASURY DEPARTMENT, Division of Loans and Currency, Washington, D. C :
Pursuant to the provisions of Treasury Department Circular No. 299, dated July 26,
1922, the undersigned presents ahd surrenders herewith for r e d e m p t i o n !
,
face amount, of 4f per cent Victory notes iii registered form, inscribed in the name
of
'.....'
- - and duly assigned to / ' T h e Secretary
of the Treasury for redemption," as follows:
Number ofnotes.
Denomination.
Serial numbers of notes.
Face amount.
$50
100
500
1,000
5,000
.10,000
50,000
100,000
Total
i n d requests that remittance covering payment therefor be forwarded to the undersigned at the address indicated below.
(Signature)
(Address in full)
(Date)
R E Q U E S T F O R R E D E M P T I O N P R I O R T O DECEMBER 15, 1922.
[To be used only in the event applicant elects to exercise option of prior redemption.]
In connection with the foregoing, the undersigned requests immediate redemption
of the above-described Victory notes prior to December 15, 1922, at par and accrued
interest to'the date of such optional redemption.
(Signature)
(Date)
184
REPORT ON THE FINANCES.
EXHIBIT
35.
[Department Circular No. 276. Loans and Currency.]
U N I T E D S T A T E S OF AMEBICA—FOUR 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-1925, DATED AND BEARING
I N T E R E S T F R O M F E B R U A R Y 1, 1 9 2 2 , D U E M A R C H 1 5 , 1 9 2 5 .
The Secretary of the Treasury offers for subscription, at par and
accrued interest, through the Federal Reserve JBanks, Treasury
notes of Series A-1925, of an issue of gold notes of the United States
authorized by the Act of Congress approved September 24, 1917, as
aniended. The notes will be daitpd and bear interest from February
1, 1922, will be payable March 15, 1925, and will bear interest at the
rate of four and three-quarters per cent per annum payable September 15, 1922, and thereafter semiannually on March 15 and
September 15 in each year.
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 before; maturity,
and will not be issued in registered form. 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 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 (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.
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 approved by the Secretary of the Treasury, in payment of income and profits taxes payable at or within six
months before the maturity of the notes. Any of the notes which
have been owned by any person continuously for at least six nionths
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 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 acceptable 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. Payment atrjar-and accrued interest for
notes allotted must be made on or before February 1, 1922, 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 excels of existing deposits,
when so notified by the Federal Reserve Bank of its district. Treas
SECRETARY OF THE TREASURY.
185
ury certificates of indebtedness of Series A-1922, maturing February
16, 1922, with any unmatured interest coupons attached, and.Victory
notes of either the 4f per cent or the 3f per cent series, will be accepted
at the Federal Reserve Banks at par, with an adjustment of accrued
interest, in payment for any Treasury notes of the Series A-1925 now
offered which shall be subscribed for and allotted. Victory notes in
coupon form must have all unmatured coupons attached, and if in
registered form must be duly^assigned to the Secretary of the Treasury
for redemption, in accordance with the general regulations of the
Treasury Departirient gbverning assignments.
The amount of the offering will be $400,000,000, or thereabouts,
with the right reserved to the Secretary of the Treasury to allot
additional notes up to one-half that amount, to the extent that
payment is tendered in Victory notes pursuant to this circular. As
fiscal agents of the United States, Federal Reserve Banks are authorized and requested ,to receive subscriptions and to make allotments
thereon on the basis and up to the amounts indicated by the Secretary
of the Treasury to the Federal Reserve Banks of the respective
districts.
A. W.
MELLON,
Secretary of the Treasury.
TREASURY DEPARTMENT
O F F I C E OF THE SECRETARY,
January 26, 1922.
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, or notes of any outstanding issue, you shoiuld make application to your own
bank, or if it can not obtain them for you, to the Federal Reserve Bank of your district.
EXHIBIT
36.
[Department Circular No. 280. Loans and Currency.]
UNITED STATES OF AMERICA—FOUR AND THREE-QUARTERS P E R
CENT TREASURY NOTES. SERIES A-1926, DATED AND BEARING
INTEREST FROM MARCH 15,1922, DUE MARCH 15,1926. OFFERED
ONLY IN EXCHANGE FOR 4f P E R CENT VICTORY NOTES.
The Secretary of the Treasury offers for subsrciption, at par,
through the Federal Reserve Banks, in exchange for 4 | per cent
Victory notes. Treasury notes of Series A-1926, of an 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 March 15, 1922, will be payable March 15, 1926, and
will bear interest at the rate of four and three-quarters per cent per
annum payable semiannually on September 15 and March 15 in each
year.
Applications will be received at the Federal Reserve Banks.
Bearer riotes 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 before maturity, and
will not be issued in registered form. The principal and interest of
the notes will be payable in United States gold coin of the present
standard of value.
186
- REPORT ON THE FINANCES.
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 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.
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 approved by the Secretary of the Treasury, in payment of income and profits taxes payable at or within six
months before the maturity of the notes. Any of the notes which
have been owned by any person coritinuously 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 b y the
Secretary 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 acceptable 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 a t
any time without notice, r a y m e n t for notes allotted must b e made
on or before March 15, 1922, or on later allotment, in Victory notes of
the 4 | per cent series, which will be accepted at the Federal Reserve
Banks at par, with an adjustmerit of accrued interest. Victory notes
in coupon form must have all unmatured coupons attached, and if in
registered form must be duly assigned to the Secretary of the Treasury for redemption, in accordance with the general regulations of the
Treasury Department governing assignments. Interest adjustments
will be made as pf March 15, 1922, and accrued interest to that date
on Victory notes accepted in payment will be paid in cash through
the Federal Reserve Banks, r a y m e n t for the notes now offered can
not be made in cash or by credit. After allotment and upon payment Federal Reserve Banks m a y issue interim receipts pending delivery of thjB definitive notes.
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 the
amounts indicated by the Secretary of the Treasury to the Federal
Reserve Banks of the respective districts.
A. W. MELLON,
TREASURY DEPARTMENT,
,
Secretary of the Treasury.
O F F I C E OF THE SECRETARY,
March 9, 1922.
To THE
INVESTOR:
Almost any banking institution in the United States will handle the exchange for
you, or you may make application direct to the Federal Reserve Bank of your district.
Your special attention is invited to the terms of subscription and allotment as stated
above, and to the fact that the notes of Series A-1926 are offered only in exchange
for 4f per cent Victory notes. If you should desire to purchase notes of the above
issue after the subscriptions close, or notes 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 THE TREASURY.
EXHIBIT
187
37.
[Departrnent.Circular No. 292. Loans and Currency.]
UNITED STATES OF AMERICA—FOUR AND THREE-EIGHTHS P E R
CENT TREASURY NOTES. SERIES B-1925, DATED AND BEARING
INTEREST FROM JUNE 15, 1922, DUE DECEMBER 15, 1925.
OFFERED ONLY IN EXCHANGE FOR 4% P E R CENT VICTORY
NOTES.
The Secretary of the Treasury offers for subscription, at par,
through the Federal Reserve Efanks, in exchange for 4f per cent
Victory notes, a limited amount of Treasury notes of Series B-1925,
of an 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 June 15, 1922, will be payable
December 15, 1925, and will bear interest at the rate of four and
three-eighths per cent per annum payable semiannually on December
15 and June 15 in each year.
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 before maturity, and
will not be issued in registered form. 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 trie 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.
Notes 01 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 ol the
Treasury, in payment of income and profits taxes payable at or
within six months before the maturity of the notes. Any of the
notes which have been owned by any person continuously for at
least six months prior to the date of his death, and which upon such
date constitute part of his estate, shall, under rules and regulations
prescribed by the Secretary 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 acceptable 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. Payment for notes allotted must be made
on or before June 15, 1922, or on later allotment, in Victory notes
of the 4 | per cent series, which will be accepted at the Federal Reserve
Banks at par, without adjustments of accrued iriterest, as of June
15, 1922. Victory notes in coupon form must have interest coupons
attached maturing December 15, 1922, and May 20, 1923, but
188
REPORT ON THE FINANCES.
interest coupons maturing June 15, 1922, must be detached and
collected in ordinary course when due. Victory notes in registered
form must be duly assigned to the Secretary of the Treasury for
redemption, in accordance with the general regulations of the Treasury
Department governing assignments. After allotment and upon payment Federal Reserve Banks may issue interim receipts pending
delivery of the definitive notes. Payment for the notes now offered
can not be made in cash or by credit, nor will Treasury certificates of
indebtedness of any series be accepted in payment.
As fiscal agents of the United States, Federal Reserve Banks are
authorized arid requested to receive subscriptions and to make
allotments in full in the order of the receipt of applications up to
the amounts indicated by the Secretary of the Treasury to the
Federal Reserve Banks of the respective districts.
A.
W.
MELLON,
Secretary of the Treasury.
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,
June 8, 1922.
To THE
INVESTOR:
Almost any banking institution in the United States will handle the exchange for
you, or you may make application direct to the Federal Reserve Bank of your district.
Y^our special attention is invited to the terms of subscription and allotment as stated
above, and to the fact that the notes of Series B-1925 are offered only in exchange
for 4 | per cent Victory notes. If you should desire to purchase notes of the above issue
after the subscriptions close, or notes of any outstanding issue, you should make application to yoiir own bank, or if it can not obtain them for you, to the Federal Reserve
Bank of your district.
EXHIBIT
38.
LETTER OF SECRETARY OF THE TREASURY TO HOLDERS OF FOUR
AND THREE-QUARTERS P E R CENT VICTORY NOTES, ACCOMPANYING THE OFFERING OF TREASURY NOTES OF SERIES
B-1925, DATED JUNE 15, 1922.
J U N E 8,
1922.
a holder of 4f per cent Victory notes, you will, I
believe, be interested in the inclosed Treasury Department Circular
No. '292,^ dated June 8, 1922, announcing an issue of United States
Treasury notes of Series B-1925, which are offered only in exchange
for 4f per cent Victory notes. Treasury notes of Series B-1925 will
be dated June 15, 1922, will be payable December 15, 1925, and will
bear interest at the rate of 4f per cent per annum, payable semiannually on December 15 and June 15 in each year. I h e new notes
are issued only in coupon form, in denominations of $100 and upwards. As you know, 4 | per cent Victory notes mature on May 20,
1923, but may be called for redemption in whole or in part, at the
option of the United States, on December 15, 1922, and it is the
Treasury's intention to call a substantial amount for redemption on
that date. This offering of Treasury notes, therefore, affords an
opportunity to holders of 4|- per cent Victory notes to acquire by
exchange a new obligation of the United States running for three
and a half years at an attractive rate of interest, in place of Victory
notes which will be payable either December 15, 1922, or May 20,
1923, depending upon the call for redemption.
D E A R S I R : AS
»See Exhibit 37, p, 187.
SECRETARY OF THE TREASURY.
189
Almost any banking.institution in the United States will handle
the exchange for you, or you may make application direct to the
Federal'Reserve Bank of your district. Victory notes tendered in
exchange, if in registered form, must be duly assigned to '^The S'ecretary of the Treasury for redemption,'' before some officer authorized
to witness assignments of United States registered bonds and notes,
in accordance with the general regulations of the Treasury Department governing assignments. Coupon Victory, notes must have the
December 15, 1922, and May 20, 1923, coupons attached, but the
June 15, 1922, coupons should be detached and collected in ordinary
course. No adjustments of interest will be necessary in any case,,
since exchanges will be made as of June 15, 1922, and interest due on
that date will be paid in ordinary course.
As you will notice from the circular, 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. You
should therefore, if you desire to make the exchange, make prompt
application.for the new notes through your own bank, or direct to
the Federal Reserve Bank of your district, and make arrangements,
preferably through your own bank, for the surrender to the Federal
Keserve 6 a n k of the 4f per cent Victory notes tendered in exchange.
Very truly yours,
A. W.
MELLON,
Secretary of the Treasury.
To THE HOLDER OF 4 | PER CENT
VICTORY NOTES ADDRESSED.
EXHIBIT
39.
[Department Circular No. 298. Loans and Currency.]
U N I T E D STATES OF AMERICA—FOUR AND ONE-QUARTER P E R
CENT T R E A S U R Y NOTES. S E R I E S B-1926, DATED AND B E A R I N G
I N T E R E S T F R O M A U G U S T 1, 1 9 2 2 , D U E S E P T E M B E R 1 5 , 1 9 2 6 .
The Secretary of the Treasury offers for subscription, at par and
accrued interest, through the Federal Reserve Banks, Treasury notes
of Series B-1926, of an 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 August 1,
'1922, will be payable September 15, 1926, and will bear interest at
the rate of four and one-quarter per cent per annum payable March
15,'1923, and thereafter semi-annually on September 15 and March
15 in each year.
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 before maturity,
and will not be issued in registered form. 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 State, or any of the possessions of the United States, or
by any local taxing authority, except (a) estate or inheritance taxes,
and (Jb) graduated additional income taxes, commonly known as
surtaxes, and excess-profits and war-profits taxes, now or hereafter
190
REPORT ON THE FINANCES.
iniposed by the United States, upon the income or profits of indif
viduals, 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 approved by the Secretary of the
Treasury, in payment of income and profits taxes payable at or withiri
six months before the maturity of the notes. Any of the notes which
have been owned by any person continuously for at least six months
prior to the date of his death, and which upon such date constitute
part of his estate, shall, under rules and regmations prescribed by tlie
Secretary 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 acceptable 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, raynaent at par and accrued interest for notes
allotted must be made on or before August 1, 1922, or on later allotnient. 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 ijb 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-1922, maturing August 1, 1922,
and Victory notes of the 4 | per cent series will be accepted at the
Federal Reserve Banks at par, with an adjustment of accrued interest,
in payment for any Treasury notes of the Series B-1926 now offered
which shall be subscribed for and allotted. Victory notes in coupon
form must have all unmatured coupons attached, and if in registered
form must be duly assigned to the Secretary of the Treasury for redemption, in accordance with the general regulations of the Treasury
Department governing assignments.
The amount of the offering will be $300,000,000, or thereabouts,
with the right reserved to the Secretary of the Treasury to allot
additional notes to the extent that payment is tendered in Victory
notes pursuant to this circular. As fiscal agents of the United States,
Federal Reserve Banks are authorized and requested to receive subscriptions and to make allotments thereon on trie basis and up to the
amounts indicated by the Secretary of the Treasury to the Federal
Reserve Banks of the respective districts.
A.
W.
MELLON,
Secretary ofthe Treasury.
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,
July 26, 1922.
To THE
INVESTOR:
Almost any banking institution in the United States will handle your subscription
for you, or you may make subscription direct to the Federal Reserve Bank of your
district. Your special attention is invited to the terms of subscription and allotment
as stated above, and to the fact that 4f per cent Victory notes may be tendered in
payment. If you desire to purchase notes of the above issue.after the subscriptions
close, or notes 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 THE TEEASURY.
EXHIBIT
191
40.
LETTER OF SECRETARY OF THE TREASURY, DATED JULY 26, 1922,
T O B A N K S A N D T R U S T C O M P A N I E S , A C C O M P A N Y I N G T H E OFFER-
ING OF TREASURY NOTES OF SERIES B-1926, DATED AUGUST
^' ^ ^ ^ ^ '
DEAR SIR:
J U L Y 26,
1922.
The Treasury is announcing to-day a call for the redemption on December 15, 1922, of about half of the 4 | per cent Victory notes which remain outstanding, and at the same time is offering
on the usual terms a new issue of $300,000,000, or thereabouts, of
short-term Treasury notes bearing interest at 4^ per cent, with provision for additional allotments up to a limited amount i n exchange
for 4f per cent Victory notes.
These two operations mark an important further step in the development of the Treasury's refunding program, and I am sending this
letter to the president of every banking institution in the comitry in
order to draw attention to the significance of the announcements and
ask the cooperation of the banks in affording to their customers ample
facilities for investing in the new notes. The call for the partial redemption of 4 | per cent Victory notes affects about $1,000,000,000
face amount of notes, and makes the notes thus called for redemption payable on December 15, 1922, leaving the balance of the Victory Liberty Loan to mature on May 20, 1923, according to its terms.
The notes called for redemption bear the distinguishing letters A, B,
C, D, E, or F prefixed to their serial numbers, and can thus be readily
distinguished from the notes not affected by the call. Copies of the
official circulars will come to you from the Federal Reserve Bank of
your district and additional copies may be obtained upon application.
The notes now'offered for subscription are designated Treasury
notes of Series B-1926, are dated August 1, 1922, will mature September 15, 1926, and will not be subject to call for redemption before maturity. The amount of the offering is%300,000,000, or thereabouts, but the Secretary of the Treasury reserves the right to allot
additional notes up to a limited amount to the extent that 4f per
cent Victory notes are tendered in payment. Subscriptions may be
closed at any time without notice, and the right is reserved to reject
any subscription and to'allot less than the amount applied for.
Holders of outstanding 4 | per cent Victory notes, whether or not
called for redemption, thus have an apportunity now, within the
limitations of the offering, to exchange their notes for new securities
of the Government bearing interest at 4 i per cent and running for a
period of over three years after Victory notes would mature or be
redeemed. Applications for the Treasury notes now offered will be
received in regular course through the several Federal Reserve Banks,
as fiscal agents of the United States, from which further particulars
concerning the offering may be obtained. This is the fourth exchange
offering which the Treasury has made in order to facilitate the refunding of the Victory Liberty Loan, and on this offering, as on previous offerings, I hope that banks and trust companies throughout
the country will extend to their customers every possible assistance
in effecting exchanges.
.
.
The Treasury's program for dealing with the short-dated debt of
the Government has now progressed to such a point that I believe
it is worth while to recite what has already been accomplished and
call attention to what remains to be done within the current fiscal
year. On April 30, 1921, when the situation .was,first outlined in
192
REPORT ON T H E FINANCES.
my letter of that date to the Chairman of the Committee on Ways
and Means, the gross public debt, on the basis of daily Treasury
Statements, amounted to about $23,995,000,000, of which over
$7,500,000,000 was short-dated debt maturing within about two
years, made up of over $4,050,000,000 in Victory notes, over $2,800,000,000 in Treasury certificates of indebtedness, and about $650,000,000 in War Savings Certificates. By June 30, 1922, the gross
pubhc debt had been reduced to about $22,963,000,000, a reduction
of about $1,032,000,000 during the period of 14 months. This
reduction has taken, place, for the most part, in the short-dated debt,
and has been accomplished through the operation of the sinking fund
and other public debt expenditures chargeable against ordinary
receipts, the application of surplus revenues to the retirement of
debt, and the reduction of the balance in the general fund. At the
same time the Treasury has been engaged, through its refunding
operations, in distributing substantial amounts, of the remaining
short-dated debt into more convenient maturities, and in this manner
has refunded about $2,250,000,000 of early maturing debt into
Treasury notes of various series maturing in 1924, 1925, and 1926.
As a result of these operations the amount of outstanding Victory
notes has been reduced from over $4,050,000,000 on April 30, 1921,
to about $1,990,000,000 on June 30, 1922, and the amount of outstanding Treasury certificates from over $2,800,000,000 to about
$1,825,000,000/ In addition there are about $625,000,000 of War
Savings Certificates of the vSeries of 1918 which become payable on
January 1, 1923, so that on June 30, 1922, there still remained outstanding about $4,440,000,000 of short-dated debt, all of which
matures in the current fiscal year.
The refunding of this debt, most of which will have to be accomplished within the next ten months, presents a problem of first importance. The $300r,p00,000, or thereabouts, of Treasury notes
offered for subscriptiori on the usual terms will provide for the Treasury certificates maturing August 1 and for the Treasury's remaining
cash requirements between now and September 15, 1922, while the
offering to allot additional notes in exchange for 4 | per cent Victory
notes should accomplish the refunding of some more of the Victory
Liberty Loan and correspondingly reduce the amount of Victory
notes to be provided for upon redemption or maturity. At the same
time the call for the redemption of about half of the outstanding
Victory notes before maturit}^ will make that much of the Victory
Loan payable on December 15 of this year, and enable the Treasury
to deal with it before maturity by appropriate refunding loans.
This will mean that by January 1, 1923, the outstanding Victory
notes will have been reduced to about $1,000,000,000, or, in other
words, a manageable maturity which can be dealt with as opportunity
offers without spectacular refunding operations that would ujpset the
security markets and disturb, the course of business and industry.
The current offering of notes is thus an essential part of the refunding program on which the Treasury is engaged, and the banking
institutions of the country by extending their facilities for the exchange of outstanding 4 | per cent Victory notes for the riew notes
will be performing an important service for the country as well as
for their customers.
Cordially yours, -A. W. MELLON, Secretary.
To THE PRESIDENT OF THE BANK OR TRUST COMPANY ADDRESSED.
SECRETARY OF T H E TEEASURY.
E X H I B I T 41.
193
'
[Third Supplement to Department Circular No. 141 of September 15, 1919. Loans and Currency.]
SUPPLEMENTAL RULES AND REGULATIONS CONCERNING TRANSACTIONS IN LIBERTY BONDS AND VICTORY NOTES.
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,
Washington, March 2, 1922.
1. Treasury Department Circular No. 141, dated September 15,
1919, prescribing rules and regulations governing transactions in
Liberty bonds and Victory notes, as amended by the Supplement
dated April 30, 1920, is hereby further amended by striking out
paragraph 27 thereof, as amended by said supplement, and inserting
in lieu thereof a new paragraph 27, reading as follows:
TRANSPORTATION CHARGES AND RISKS ON BONDS AND NOTES.
27. Transportation charges and risks upon bonds and notes presented to the Treasury
Department, Washington, or a Federal Reserve Bank, for exchange or transfer, or
for other transactions included within the scope of this circular, must be borne by
the holders of the bonds or notes presented,, and the bonds or notes must be delivered
to the Treasury Department or the Federal Reserve Bank with all transportation
charges prepaid. . Registered bonds and notes to be delivered upon exchange or
transfer, or otherwise, unless delivered in person to the registered owner or his duly
authorized representative, will be. delivered by registered mail witliout expense to,
but at the risk of, the registered owner, except that such registered bonds or notes
will be delivered by express collect at the risk and expense of the registered owner
if written request for such delivery be made. Coupon bonds and notes to be delivered
upon exchange or otherwise, unless delivered in person to the owner or his duly
authorized representative, will be delivered at the owner's risk and expense, and
will be delivered by express collect unless complete arrangements for delivery by
registered mail insured have been made by the owner prior to the shipment of the
bonds or notes to be delivered. Holders of bonds and notes are advised to consult
with their own banks and trust companies in cases where transactions involve the
transportation of coupon bonds or notes, for arrangements may be made as between
Federal Reserve Banks and incorporated banks and trust companies for the transportation of such coupon bonds and notes to and from Federal Reserve Banks by registered mail insured, the charges in each case to be paid by the respective holders
and to be remitted by the incorporated banks and trust companies to the Federal
Reserve Banks. Similar arrangements for the transportation of toupon bonds and
notes by registered mall insured may be effected when transactions are submitted
direct to the Treasury Department, Washington, information as to which may be
obtained, upon application, from the Treasury Department, Division of Loans and
Currency. Transportation charges and risks on bonds and notes transmitted between
Federal Reserve Banks and the Treasury Department under the provisions of this
circular will be borne by the United States. Registered bonds and notes assigned
in blank, and registered bonds and notes assigned to the Secretary of the Treasury
for exchange for coupon bonds/notes, without instructions restricting delivery, lack
the protection which registration affords, and will therefore be regarded, for the
purposes of this paragraph, as in effect coupon bonds and notes.
2. Notwithstanding the provisions of Treasury Department Circular No. 137, dated March 7, 1919, as amended and supplemented
June 10 and November 1, 1919, the provisions of said paragraph 27,
as thus amended, shall apply to and govern transactions involving
the conversion of 4 per cent bonds of the First Liberty Loan Converted and the Second Liberty Loan.
3. Nothing hereia, contained shall be deemed to modify or affect
the provisions of Treasury Department Circular No. 164, dated
Deceniber 15, 1919, as amended and supplemented March 13 and
14263—FI 1922
^13
194
REPORT ON T H E F I N A N C E S .
August 27, 1920, as to transportation charges and risks in connection
with exchanges and conversions of coupon Liberty bonds in temporary fonri.
4. T h e Secretary of the Treasury may withdraw or amend at any
time or from time to time all or' any of the provisions of this supplemental circular.
A. W.
MELLON,
Secretary ofthe Treasury.
EXHIBIT
42.
[Supplement to Department Circular No. 225. Loans and Currency.]
R E C E I P T OF L I B E R T Y BONDS, VICTORY NOTES, AND T R E A S U R Y
NOTES F O R E S T A T E OR I N H E R I T A N C E T A X E S .
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,
Washington, June 50, 1922.
1. The provisions of Pepartment Circular No. 225, dated January
31, 1921, prescribing regulations governing the receipt of Liberty
bonds and Victory notes for Federal estate or inheritance taxes are
hereby extended and made applicable to Treasury notes of the
United States now or hereafter issued under authority of Section 18
of the Second Liberty Bond Act, as amended and supplemented,
bearing interest at a higher rate than 4 per centum per annum, and
any such Treasury notes shall accordingly 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 the same terms and conditions as
provided in said Department Circular No. 225, dated January 31,
1921, with respect to the acceptance of Liberty bonds and Victory
notes bearing interest at a higher rate than 4 per centum per annum.
2. The issues of Treasury notes at this date outstanding, bearing
interest at a higher rate than 4 per centum per arinum, are:
Date of issue.
Description.
(a) 5f per cent notes, payable June 15,1924
^&) 5^ per cent notes, payable Sept. 15,1924
(c) 4f per cent notes, payable Mar. 15,1925
(d) 4f per cent notes, payable Mar. 15,1926
\e) 41 per cent notes, payable Dec.'15,1925.
....
. . .
...
.
June
Sept.
Feh.
Mar.
June
15,1921
15,1921
1,1922
15,1922
15,1922
Short title.
Series A-1924.
Series B-1924.
Series A-1925.
Series A-1926.
Series B-1925.
3. For the calculation of accrued interest on the current coupons
of Treasury notes tendered in payment of estate or inheritance taxes
under this circular, the method outlined in Exhibit B to Department
Circular No. 225, dated January 31, 1921, should be followed. Interest tables at the various rates borne by Treasury notes m a y be obtained from the Treasury Department, Division of Loans and Currency, Washingtori. The interest tables appropriate for use in connection with the issues of Treasury notes at present outstanding are
asfollows: .
Form General 1017, for Series A-1924 (interest dates June 15 and
Deceniber 15).
Form General 1016, for Series B-1924 (interest dates March 15 and
September 15).
SECRETARY OF THE TRJEASURY.
195
Form L. & C. 369, for Series A-1925 prior to September 15, 1922
(interest during this period is on annual 365-day basis)'.
Form L. & C. 435, for Series A-1925 subsequent to September 15,
1922 (interest dates March 15 and September 15).
Form L. & C. 435, for Series A-1926 (interest dates March 15 and
September 15).
interest tables or decimals for computing interest as may be required
for other or future issues may be obtained from the Treasury Department, Division of Loans and Currency, Washington, upon request.
A.
W.
MELLON,
Secretary of the Treasury..
EXHIBIT
43.
[Fourth Supplement to Department Circular No. 141 of September 15, 1919. Loans and Currency.f
S U P P L E M E N T A L R U L E S AND REGULATIONS CONCERNING T R A N S ACTIONS I N VICTORY NOTES.
•
„ TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,
Washington, July 26, 1922.
1. In accordance with the provisions of Treasury Department
Circular Mo. 138, dated April 21, 1919, the provisions of Treasury
Department Circular No. 141, dated September 15, 1919, prescribing
rules and regulations governing transactions in Liberty bonds and
Victory notes,. are hereby modified with respect to transactions in
4J per cent Victory notes, as follows:
2. iPursuant to the call for redemption on December. 15, 1922, of
all 4 | per cent Victory notes which bear the distinguishing letters
A, B, C, D, E, or F, prefixed to their serial numbers, as provided in
Treasury Department Circular No. 299, dated July 26, 1922, the
outstanding 4f per cent Victory notes are thrown into two separate
and distinct classes, first, notes bearing the distinguishing letters
A, B, C, D, E, or F, which are called for redemption on December 15,
1922, and, second, notes bearing the distinguishing letters G, H, I,
J, K, or L, which are not called for redemption and will mature
May 20, 1923, according to their terms. Effective this date, the
Treasury Department, and the Federal Reserve Banks as fiscal agents
of the United States, will observe this division between called and
uncalled notes in all transactions affecting 4 | per cent Victory notes,
including transactions involving exchanges of denomination, exchanges of coupon notes for registered notes, exchanges of registered
notes for coupon notes, and transfers of registered notes. Deliveries
of 4 | per cent Victory notes upon exchange or transfer will accordingly De made henceforth in notes bearing distinguishing letters
within the same block as the notes surrendered for exchange or transfer; that is to say, against notes bearing the distinguishing letters
A, B, C, D, E, or F, deliveries will be made of notes bearing distinguishing letters A, B, C, D, E, or F, and against notes bearing the
distinguishing letters G, H, I, J, K, or L, deliveries will be made of
notes bearing distinguishing letters G, H, I, J, K, or L.
A.
W.
MELLON,
Secretary of the Treasury.
.
196
-
REPORT ON THE FINANCES.
EXHIBIT
44.
[Fifth Supplement to Department Circular No. ]41 of September 15,1919. Loans and Currency.]
SUPPLEMENTAL RULES AND REGULATIONS CONCERNING TRANSACTIONS IN LIBERTY BONDS AND VICTORY NOTES.
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,
Washington, July 28, 1922.
1. Paragraph 14 of Treasury Department Circular No. 141, dated
September 15, 1919, as heretofore amended and supplemented,
governing tr.ansactions in Liberty bonds and Victory notes, is hereby
amended to read as follows:
14. Assignments from minors.—Bonds or notes registered in the name of a minor
without more, or in the name of a minor by a natural guardian, as, for example, "John
Jones, minor, by Henry Jones, natural guardian," 6i^ in the name of a legal guardian
for a minor, may be assigned during minority only by the guardian legally appointed
by a court of competent jurisdication, or otherwise legally qualified, or pursuant to
order or decree of a court of competent jurisdiction; provided, however, that in cases
where such bonds or notes have been purchased by the natural guardian of the minor
out of his own funds as a gift to the minor, or otherwise purchased for the benefit of
the minor and registered in the name of the minor without more, or in the name of
the minor by such natural guardian, as, for example, *'John Jones, minor, by Henry
Smith, guardian," and the entire gross value of the minor's estate, both real and
personal, does not exceed $500, assignments by the natural guardian for transfer or
for exchange into coupon bonds or notes, or for redemption, may be recognized upon
presentation of proof satisfactory to the Secretary of the Treasury that the proceeds
of the bonds or notes so assigned are necessary and are to be used for the support or
education of the minor. The Secretary of the Treasury may also require in any such
case abend of indemnity with satisfactory sureties. In the event that bonds or notes are
registered in the name of a natural guardian for a minor, designated either as natural
guardian or guardian, as, for instance, *'John Jones, guardian of Henry Jones, a minor,"
or *'John Jones, natural guardian of Henry Jones, a minor," or a substantially similar
form, assignments by the natural guardian of the minor when executed under his representative title in the same form as set forth in the registration will be recognized by
the Treasury Department without requiring proof of his appointment or authority to
act; provided, however, that no assignment by any such natural guardian to himself
individually will be recognized unless accompanied by a duly authenticated copy of
an order or decree of a court of competent jurisdiction specifically authorizing the
assignment, in accordance with the provisions of Treasury Department Circular No.
147, dated July 22, 1919. Any provisions of Treasury Department Circular No. 182,
dated February 14, 1920, inconsistent herewith, are to that extent hereby superseded.
No assignment of any such bonds or notes by the legal or natural guardian of the
minor fbr exchange, or for transfer to any person other than the ward, or for redemption,
will be recognized after notice of the termination of the guardianship or of the attainment of majority by the ward, unless the ward joins in such assignment.
A.
'
W.
MELLON,
Secretary of the Treasury.
EXHIBIT
45.
[Department Circular No. 288. PubUc Debt.]
REGULATIONS IN REGARD TO LOST, STOLEN, DESTROYED, MUTILATED, AND DEFACED UNITED STATES BONDS AND NOTES.
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,
Washington, D. C , May 15, 1922.
The following statutes of the United States relate to lost, stolen,
destroyed, mutilated, and defaced United States bonds and notes,
ajad claims for relief arising in connection therewith:
SECRETARY OF THE TREASURY.
197
Whenever it appears to the Secretary of the Treasury, by clear and unequivocal
proof, that any interest-bearing bond of the United States has, without bad faith upon
the part of the owner, been destroyed, wholly or in part, or' so defaced as to impair.its
value to the owner, an4 such bond is identified by number and description, the Secretary of the Treasury shall, under such regulations and with such restrictions a,s to
time and retention for security or otherwise as he may prescribe, issue si. duplicate
thereof, having the same time to run, bearing like interest as the bond so proved to
have been destroyed or defaced, and so marked as to show the originas^l number of the
bond destroyed and the date thereof. B u t Avhen such destroyed or defaced bonds
appea,r to have been of such a class or series as ha'? been or may, before such application, be called in for redemption, instead of issuing duplicates thereof, they shall be
paid, with such interest only as w^ould have been paid if they had feeen presented in
accordance AAdth such call. (Sec. 3702. Revised Statutes.)
The owner of such destroyed or defaced bond shall surrender the same, or so much
thereof as may remain, and shall file in the Treasury a bond in a penal sum of double
the amount of the destroyed or defaced bond, and the interest Avhich would accrue
thereon until the principal becomes due and payable, AAdth tAvo good and sufficient
sureties, residents of the United States, to be approved by the Secretary of the
Treasury, with condition to indemnify. and save harmless the United States from
any claim upon such destro^^ed or defaced bond. (Sec. 3703, RcAdsed Statutes.)
Whenever it is proved to the Secretary of the Treasury, by clear and satisfactory
eviSence. that any duly registered bond of the United States, bearing interest,.issued
for valuable consideration in pursuance of laAv, has been lost or destroyed, so that the
same is not held by any person as his own property, the Secretary shall issue a duplicate of such registered bond, of like amount, and bearing like interest and marked
in the like manner as the bond so proved to be lost or destroyed. (Sec. 3704, Revised
Statutes.)
The oAvner of such missing bond shall fii'st file in the Treasury a bond in a penal sum
equal to the amount of such missing bond, and the interest which Avould accrue
tliereon, until tlie principal thereof becomes due and payable, Avith two good and
sufiicient sureties, residents of the United States, to be approved by the Secretary
of the Treasury, Avith condition to indemnify and save harmless the United States
from any claim because of the lost or destroyed bond. (Sec. 3705, Revised Statutes.)
Whenever any recognizance, stipulation, bond, or undertaking conditioned for the
faithful performance of any duty, or for doing or refraining from doing anything in
such recognizance, stipulation, bond, or undertaking specified, is by the laws of the
United States required or permitted to be given Avith one surety or with tAvo or more
sureties, the execution of the same or the guaranteeing of the performance of the condition thereof shall be sufficient Avhen executed or guaranteed solely by a corporation incorporated under the laAA^s of the United States, or of any State having poAver
to guarantee the fidelity of persons holding positions of public or private trust, and to
execute and guarantee bonds and undertakings in judicial proceedings: Provided,
That such recognizance, stipulation, bond, or undertaking be approved by the head
of department, court, judge, officer, board, or body executive, legislative, or judicial
required to approve or accept the same. But no officer or person having the approval
of any bond shall exact that it shall be furnished by a guaranty company or by any
particular guaranty company. (Act Aug. 13, 1894, sec. 1; 28 Stat. 279.) See also
sections 2-8 of the same statute, as amended by the Act approved March 23, 1910.
The word " b o n d " or " b o n d s " Avhere it appears in sections 8, 9, 10, 14, and 15 of
this Act as amended, and sections 3702, 3703, 3704, and 3705 of the Revised Statutes,
and section 5200 of the Eevised Statutes as amended, b u t in such sections only, shall
be deemed to include notes issued under this section. (Sec. 18((i), Second Liberty
Bond Act as amended.)
Whoever shall make or cause to be made, or present or cause to be presented, for
payment or approval, to or b y any person or officer in the civil, military, or naval
service of the United States, any claim upon or against the Government of the
United States, or any department or officer thereof, knowing such claim to be false, ,
fictitious, or fraudulent; or whoever, for the purpose of obtaining or aiding to obtain
the payment or approval of such claim, shall make or use, or cause to be made or
used, any false bill, receipt, voucher, roll, account, claim, certificate, affidaAdt,
or deposition, knoAving the same to contain any fraudulent or fictitious statement
or entry; or AvhoeA^er shall enter cinto any agreement, combination, or conspiracy
to defraud the Government of the United States, or any department or officer thereof,
b y obtaining or aiding to obtain the payment or allowance of any false or fraudulent
claim; or whoever, having charge, possession, custody, or control of any money or
other public property used or to be used in the military or nayal service, with intent
to defraud the United States or wdllfully to conceal such money or other property,
198
REPORT ON THE FINANCES.
fihall deliver or cause to be delivered, to any other person having authority to receive
the same, any amount of such money or other property less than that fdr which he
received a certificate or took-a receij)t; or whoever, being authorized to make or
deliver any certificate, voucher, receipt, or other paper certifying the receipt of
arms, ammunition, provisions, clothing, or other property^so used or to be used,
shall make or deliver the same to any other person without a full knoAvledge of the
truth of the facts stated therein, and with intent to- defraud the United States, shall
be fined not more than five thousand dollars, or imprisoned not more than five years,
or both. (Sec. 35, Penal Code of the United States, approved March 4, 1909.)
COUPON BONDS AND NOTES.
1. Coupon honds or notes lost or stolen.—The Treasury Department can grant no relief on account of lost or stolen coupon bonds
or notes. United States bonds and notes in coupon form are payable
to bearer, and title thereto passes by delivery, without indorsement
and without notice to the Treasury Department. Under generally
recognized principles of law an innocent purchaser for value without
notice before maturity acquires good title to coupon bonds or noies
even though reported lost or stolen, and no proof of ownership is
required when coupon bonds or notes are presented in regular course
to the Treasury Department, or its designated agencies, for pay-;
ment, exchange, or conversion. The Treasury Department assumes
no responsibility whatever with respect to coupon bonds or notes
reported lost or stolen and enters no stoppages or caveats against
their payment, exchange, or conversion. This is the long-established
policy of the Treasury, an(i is in accordance with the following
public announcement made by the Secretary of the Treasury on
April 27, 1867, and reaffirmed and republished from time to time
as to United States bonds and notes in coupon form reported lost
or stolen:
In consequence of the increasing trouble, wholly without practical benefit, arising
from notices which are constantly received at the Department respecting the loss
of coupon bonds, which are payable to bearer, and of Treasmy notes issued and
remaining in blank at the time of loss, it becomes necessary to give this public
notice, that the Government can not protect, and will not undertake to protect,
the owners of such bonds and notes against the consequences of tlieir own fault or
misfortune.
Hereafter all bonds, notes, and coupons, payable to bearer, and Treasury notes
issued and remaining in blank, Avill be paid to the party presenting them in pursuance of the regulations of the Department, in the course of regular business; and
no attention will be paid to caveats which may be filed for the purpose of preventing
such payment.
The Treasury Department does not undertake to furnish any
information with respect to the presentation of coupon bonds or
notes reported lost or stolen, but it will, wherever possible, in order
to assist in tracing lost or stolen securities, furnish, upon appropriate
written inquiry, such information as may be available in the Deartment as to whether or not bonds or notes reported lost or stolen
ave already been presented, and if already presented, as to the
source from which they were received. United States coupon bonds
and notes are customarily handled in the regular course of business
without reference to serial number, and in most cases, therefore,
it is improbable that any information will be available as to the
source from which received.
2. Coupon honds or notes destroyed or materially defaced.—In case
of the destruction, wholly or in part, or the material defacement, of
E
SECRETARY OF THE TREASURY.
199
a coupon bond or note, the Treasury may grant relief, upon application of the owner, in accordance with the provisions of sections
3702-3703 of the Revised Statutes, above quoted. Reports of the
destruction or defacement of coupon bonds or notes should be made
to the Treasury Department, Division of Loans and Currency,
Washington, D. C, or to the Federal Reserve Bank of the district,
and the exact description of the bond or note should be furnished.
If only partialljr destroyed, defaced, or mutilated, the portion or
portions remaining should be carefully packed to avoid further
mutilation and delivered or forwarded with the report. Upon
receipt of the report full information with respect to procedure and
proof required for rehef will be furnished together with application
and affidavit forms. The claimant, who must be the owner, will be
required to establish to the satisfaction of the Secretary of the Treasury by clear and unequivocal proof, (1) the complete identification
of the bond or note, by loan (issue and series), denomination, serial
number, and coupons, if any, attached; (2) his ownership thereof;.
(3) the destruction or defacement of the bond or note, and that it
was without bad faith on his part. This proof should include affidavits by the claimant and* all other persons having knowledge of the
facts, which must be supported, with respect to each person making
such an affidavit, by the affidavits of two responsible and disinterested persons who are in no manner related to the claimant, and who
should, wherever possible, be officers of the United States or executive officers of incorporated banks or trust companies, identifying the
affiant and showing that he is a person known to them and whose
statements, as set forth in his affidavit, are worthy of the confidence
and consideration of the Treasury Department! No proof should be
submitted until full instructions and blank forms are received from
the Treasury Department or the Federal Reserve Bank. All evidence should be filed with the Treasury Department, Division of
Loans and Currency, Washington, D. C, or with the Federal Reserve
Bank to which the destruction or defacement was reported. If,
upon receipt and examination of the evidence by the department, itappears that relief may be granted under the provisions of the
statutes, a form of bond of indemnit>y will be furnished to the claimant
by the Department for execution, with good and sufficient surety
satisfactory to the Secretary of the Treasury, in a penal sum of
double the amount of the principal of the bond or note, and the
interest which would accrue thereon to maturity. Upon return of
the bond of indemnity, duly executed, and its approval by the Secretary of the Treasury, the relief authorized will be granted. In no
event should a bond of indemnity be submitted until called for by the
Department, and it should be submitted then only on the prescribed
form furnished for the purpose. If relief is granted on account of
destroyed, defaced, or mutilated bonds other than Liberty bonds,
registered bonds only will be issued, coupon bonds of such issues
not being available. If the bonds or notes as to which relief is
granted have matured or have been called for earlier redemption,
relief will take the form of payment thereof, with interest to maturity
or the redemption date, as the case may be.
3. Coupon honds or .notes with immaterial defacements or mutilations.—li the defacement or nautilation of a coupon bond or note
appears to be immaterial or is so slight that the bond or note may be
200
REPORT.ON THE FINANCES.
fully and completely identified, and the missing fragments could not
by any possibility form the basis of a claim against the Uiiited States,
the Treasury Department may grant relief without a bond of indemnity, upon the filing of satisfactory proof in affidavit form as to
ownership and the circumstances of defacement or mutilation. The
defaced or mutilated bond or note should in such cases be presented
to the Treasury Department, Division of Loans and Currency, Washington, D. C , or to the Federal Reserve Bank of the district, and full
instructions regarding procedure for the granting of relief will then
be furnished.
INTEREST COUPONS.
4. Lost, stolen, or destroyed interest coupons.—The Treasury Department can not grant relief on account of interest coupons which have
been lost, stolen, or destroyed after being detached from United
States bonds or notes, or on account of interest coupons attached|to
bonds or notes lost or stolen. The Treasury Department assumes no
responsibility whatever with respect to interest coupons which have
been reported lost or stolen, or detached coupons which have been
reported destroyed, and it enters no stoppages or caveats against
their payment. The Treasury, moreover, does not undertake to
furnish any information with respect to the presentation of interest
coupons, though it will, wherever possible, in order to assist in tracing
lost or stolen securities, furnish, upon appropriate written inquiry,
such information as may be available in the Department as to whether
or not coupons reported lost, stolen, or destroyed have already been
presented. Interest coupons from United States coupon, bonds and
ndtes, however, are customarily handled in the regular course of
business without reference to serial number, and in most cases, therefore, it will be impossible to give any information as to the source
from which received. In cases where interest coupons have been
partially destroyed, mutilated, or defaced, but the remaining portions can be identified as to amount, due date, and serial number,
and the missing fragments could not by any possibility form the
basis of a claim against the United States, relief may be granted
upon the surrender of the remaining portions of the coupons to the
Treasurer of the United States, Washington, D. C , accompanied
by satisfactory proof in affidavit form as to the ownership of the
coupons and the circumstances of their partial destruction, mutilation, or defacement.
REGISTERED BONDS AND NOTES.
5. Registered honds or notes lost, stolen, or destroyed.—In case of the
loss, theft, or destruction of a registered bond or note, the Treasury
Department may grant relief upon proper application, subject to the
provisions of sections 3704-3705 of the Revised Statutes, above
(juoted, and of these regulations. Pending the granting of relief
interest will continue to be drawn payable to the order of the registered owner even though the bond or note has been reported lost,
stolen, or destroyed, subject, however, to any assignments thereon.
Upon discovery of the loss, theft, or. des true tion, report should immediately be made of the facts, with a full description of the bonds and
notes and of any. assignments thereon, to the Treasury Department,
201
SECRETARY OF THE TREASURY.
Division of Loans and Currency, Washington, D. C , with the request
that a caveat be entered on the records of the Department against
the transfer, exchange, or payment thereof.^This report should
follow, in substance, the following form:
"^ (Date)
.
To
the
SECRETARY OF THE TREASURY,
DIVISION OF LOANS AND CURRENCY,
Washington, D . C .
The following United States bonds/notes were
(Briefly state particulars.)
.on or about.
(Date.)
Title of loan.
DenomSerial
ination. number.
Inscribed in name of—
Assigned to (if assigned in
blank or for exchange
for coupon bonds/notes,
so state):
Please enter caveat(s) against the transfer, exchange, or payment
thereof, and advise me as to the procedure for relief.
(Signature)
(Address)
.
6. Registered honds or notes hearing no assignments and lost, stolen, or
destroyed.—Upon receipt of a report of the loss, theft, or destruction
of registered bonds or notes bearing no assignments a caveat against
the transfer, exchange or payment thereof will be entered on the
records of the Treasury Department, and full information will be
furnished to the registered owner with respect to the procedure for
securing relief, together with the necessary forms for the purpose.
The claimant, who in cases arising under this paragraph should be
the registered owner of record or his recognized representative, will
be required to establish to the satisfaction of the Secretary of the
Treasury, by clear and satisfactory evidence, (1) the complete identification of the registered bond or note by loan (issue and series),
denomination, serial number, and inscription; (2) his ownership
thereof; and (3) that the registered bond or note has been lost, stolen,
or destroyed so that the same is not held by any person as his own
property. The proof should include affidavits by the claimant and
other persons having knowledge of the facts, which must be supported,
with respect to each person making such an affi(iavit, by the affidavits
of two responsible and disinterested persons who are in no manner
related to the claimant and who should, wherever possible, be officers
of the United States or executive officers of incorporated banks or
trust companies, identifying the affiant and showing that he is a
person known to them and whose statements, as set forth in his
affidavit, are worthy of the confidence and consideration of the
Treasury Department. No evidence should be submitted until full
202
REPORT ON T H E FINANCES.
instructions and blank forms are received from the Treasury Department or the Federal Reserve Bank of the district. If, upon receipt
and examination of the evidence by the Department, it appears that
relief may be granted under the provisions of the statutes, a form of
bond of indemnity will be furnished to the claimant for execution,
with good and sufficient surety satisfactory to the Secretary of the Treasury, in a penal sum of the amount of the principal of* the bond or note
and the interest which would accrue thereon to maturity. Upon
^ return of the bond of indemnity, duly executed, and its approval by
the Secretary of the Treasury, the relief authorized will pe granted.
In no event should a bond of indemnity be submitted until called for
by the Department, and it should be submitted then only on the prescribed form furnished for the purpose. If relief is granted, new
bonds or notes will be issued inscribed in the same manner as those
lost, stolen, or destroyed, except that if the lost, stolen, or destroyed
bonds or notes have matured or have been called for earlier redemption, relief will take the form of payment thereof. In cases of lost or
stolen registered bonds or notes relief will not be granted until the
expiration of six months from the time of the alleged loss or theft.
7. Registered honds or notes bearing specific assignments and lost,
stolen, or destroyed.—^Upon receipt of a report of the loss, theft, or
destruction of registered bonds or notes bearing specific assignments, a caveat against the transfer, exchange, or payment thereof
will be entered on the records of the Treasury Department, and the
procedure for securing relief will be the same as provided in paragraph 6 hereof for registered bonds and notes bearing no assignments,
except that if the ownership of such bonds or notes has passed from
the registered owner of record by assignment, the owner of the
bond or note at the time of loss, theft, or destruction should present
the claim and should give the required bond of indemnity. If
relief is granted, the new bonds or notes, will be issued, however, in
the name of the registered owner of record, from whom the claimant,
if not himself the registered owner, should secure an appropriate
assignment or power of attorney. In the event that the reliei granted
takes the form of payment of the bonds or notes, the claimant
should likewise secure an appropriate assignment or power of attorney
from the registered owner of record. In order to avoid later difficulties, claimants on account of registered bonds or notes assigned
to them and subsecjuently lost, stolen, or destroyed, should procure
immediately from the registered owner of record a power of attorney
to assign the bonds or notes and to collect the interest thereon.
(Appropriate forms for this purpose may be obtained from the
Treasury Department, Washington, D. C , or the Federal Reserve
Bank of the district.) In this connection attention is called to the
fact that a power df attorney to sell and assign a United States
registered bond or note does not authorize an assignment to the
attorney himself unless specific authority therefor is contained in
the power of attorney.
8. Registered bonds or notes assigned in blank or for exchange, and
lost, stolen, or destroyed.—Registered bonds or notes assigned in blank,
or bearing assignments for exchange for coupon bonds or notes without instructions restricting delivery, are in effect payable to bearer,
since title thereto may pass by delivery without further assignment or
indorsement. The Treasury Department can accordingly grant no
SECRETARY OF THE TREASURY.
203
relief on account of the loss or thef t of bonds os notes so assigned, and
will not enter caveats against their transfer, exchange, or payment, if
reported lost or stolen. The Treasury Department assumes no responsibility with respect to bonds or notes so assigned, b u t if notified
of their loss or theft will make appropriate notations on its records,
and, in the event that the bonds or notes thereafter are received for
transfer, exchange, or payment, may require the person presenting
such bonds or notes to submit evidence showing whether or not he is a
bona fide holder in due course. If it appears that the person presenting the bonds or notes is not a bona fide holder in due course, the
Department may withhold transfer, exchange, and payment, and in
any event it will notify the registered owner of the result of the inquiry. In case bonds or notes so assigned are destroyed or defaced,
relief will be given upon application in proper form on substantially
the same terms and conditions as prescribed in paragraph 2 hereof
for coupon bonds or notes destroyed or defaced, except that the bond
bf indemnity shall be in the penal sum of the amount of the principal
of the bonds or notes and the interest which would accrue thereon to
maturity. The owner of the bonds or notes at the time of destruction
or defacement should present the claim, and should give the required
bond of indemnity. If relief is granted, the new bonds or notes will
be issued, however, in the name of the registered owner of record,
from whom the claimant, if not himself the registered owner, should
secure an appropriate assignment or power of attorney, as indicated
in paragraph 7 hereof.
9* Registered bonds and'notes with immaterial defacements and mutilations.—^^If the defacement or mutilation of a registered bond or
note appears to be immaterial or is so slight that the bond or note
may be fully and completely identified, and the missing fragments
could not by any possibility form the basis of a claim against the
United States, the Treasury Department may grant relief without a
bond of indemnity, upon the filing of satisfactory proof in affidavit
form as to ownership and the circumstances of defacement or mutilation. The defaced or mutilated registered bond ^or note should in
such cases be presented to the Treasury Department, Division of
Loans and Currency, Washington, D. C , or to the Federal Reserve
Bank of the district, and full instructions regarding procedure for the
granting of relief will then be furnished.
10. Recovery oj registered bonds or notes reported lost, stolen, or
destroyed.—When registered bonds or notes previously reported lost,
s.tolen, or destroyed,^ are recovered, the Treasury Department,
Division of Loans and Currency, Washington, D. C , should be
immediately notified in order that the caveats (or notations) placed
against the bonds or notes may be removed. The report of recovery,
with request for removal of the caveat (or notation), should be made
over the signature of the registered owner of record, or of the recognized representative of such registered owner, and should specifically
describe the bonds or notes recovered. If the registered bonds or
notes at the time of loss, theft, or destruction were assigned and a
caveat (or notation) was entered at the request of the assignee or
in his behalf, the report of recovery, with request for the removal of
the caveat (or notation), should be made over the signature of the^
assignee or his recognized representative.
204
REPORT ON THE FINANCES.
^BONDS OF INDEMNITY.
11. The Secretary of the Treasury reserves the right before granting relief in any case under these regulations to require a bond of indemnity, with satisfactory surety, even though the filing of a bond
of indemnity is not specifically provided for hereunder. The requirements of the Treasury Department with respect to the acceptance of individual and corporate sureties on bonds of indemnity given
in accordance with the requirements of this circular are; set forth in
the prescribed form of bond of indemnity.
TREASURY CERTIFICATES OF INDEBTEDNESS.
.
•
.
.
.
' . •
12. The foregoing regulations, in so far as applicable thereto, likewise govern relief in case of the loss, theft, defacement, mutilation,
or destruction of Treasury certificates of indebtedness, or of an;^
interest coupons appertaining thereto. Treasury certificates of indebtedness of the issues regularly sold to'^the public are payable to
bearer, and for the purposes of this circular stand on the same basis
as United States coupon bonds and notes.
TREASURY (WAR) SAVINGS SECURITIES.
13. Regulations governing relief in case of the loss, theft, defacement, mutilation, or destruction of Treasury (war) savings securities
are not embqdied in this circular, but are set forth in Treasury Department Circulars No. 108, dated January 21, 1918, and No. 149,
dated July 31, 1919, respectively, as amended and supplemented, to
which those interested are referred.
MISCELLANEOUS.
14. All communications relating to matters covered by this circular, as well as requests for forms for use in connection with applications for relief hereunder, should be addressed to the Treasury Department, Division of Loans and Currency, Washington, D. C , or,
if desired, to the Federal Reserve Bank of the district.
15. This circular supersedes the general regulations promulgated
by Treasury JDepartment Document 2740, dated July 1, 1915, known
as the regulations in relation to United States bonds, in so far as such
regulations relate to lost, stolen, mutilated, defaced, or destroyed
bonds, as well as paragraphs 23 and 24 of Treasury Department Circular No. 141, dated September 15, 1919.
16. The Secretary of the Treasury may at any time or from time
to time make any further or any supplemental"or amendatory rules
and regulations governing the matters covered in this circular, subject, however, to the provisions of sections 3702, 3703, 3704, and
3705 of the Revised Statutes of the United States.
A. W.
MELLON,
Secretary of the Treasury.
SECRETARY OF T H E TREASURY.
EXHIBIT
,
205
46.
[Department Circular No. 268. Loans and Currency.]
UNITED STATES OF AMERICA—TilEASURY CERTIFICATES OF INDEBTEDNESS, DATED AND BEARING INTEREST FROM DECEMBER 15, 1921. SERIES T J2-1922, 4^ P E R CENT, DUE JUNE 16,
1922. SERIES T D-1922, 4^ P E R CENT, DUE DECEMBER 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 December 15, 1921, the certificates of Series
T J2-1922 being payable on June 15, 1922, with interest at the rate
of four and one-quarter per cent per annum semiannually, and
the certificates of Series T D-1922 being payable on December 15,
1922, with interest at the rate of four 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 T J2-1922
will have one interest coupon attached, payable June 15, 1922, and
the certificates of Series T D-1922 two interest coupons attached,
payable June 15, 1922, and December 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 (6) graduated additional income taxes,, commonly known as
surtaxes, and excess-profits and war-profits taxes, now or hereafter
imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corporations. The interest on
an amount of bonds and certificates authorized by said act approved
September 24, 1917, and amendments thereto, the principal of
which does not exceed in the aggregate $5,000, owned by any individual, partnership, association, or corporation, shall be exempt from
the taxes provided for in clause (b) above.
The certificates of these series will be accepted at par, with an
adjustment of accrued interest, during such time anci under such
rules and regulations as shall be prescribed or approved by the
Secretary of the Treasury, in payment of income and profits taxes
payable at the maturity of the certificates. The certificates of 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 December 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 D -
206
REPORT ON THE FINANCES.
1921, maturing December 15, 1921, will be accepted at par, with an
adjustment of accrued interest, in payment for any certificates of
the Series T J2-1922 or T D-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
allotments on the basis and up to the amounts indicated by the
Secretary of the Treasury to the Federal Reserve Banks of the
- respective districts.
A.
W.
MELLON, „
Secretary ofthe Treasury.
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,
December 12,1921.
To
THE
INVESTOR:
Almost any banking institution in t h e United States will handle your subscription
for you, or you may make subscription direct to t h e Federal Reserve Bank of your
district. Your special attention is invited to the terms of subscription and allotment
as stated aboye. If you desire to purchase certificates of t h e 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 you, to t h e Federal Reserve
Bank of your district.
EXHIBIT
47.
(Department Circular No. 279. Loans and Currency.]
U N I T E D S T A T E S OF A M E R I C A — F O U R AND O N E - Q U A R T E R 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 .
SERIES
T M - 1 9 2 3 , D A T E D AND B E A R I N G I N T E R E S T FROM MARCH 15,
1922, D U E MARCH 15, 1923.
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 TM-1923, dated and
beariag interest from March 15, 1922, payable March 15, 1923, with
interest at the rate of four 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,
$5,000, $10,000, and $100,000. The certificates will have two
interest coupons attached, payable September 15, 1922, and March
15, 1923.
The certificates of said series shall be exempt, both as to principal
and interest, from all taxation now or hereafter imposeci by the
Un^ited 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 (Jb) 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 (Jb) above.
SECRETARY OF THE TREASURY.
"
207
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, m payment of income and profits taxes payable at the
maturity of the certificates. The certificates do not bear the circulation privilege.
The right is reserved to reject any subscription and to allot less
than the amount of certificates applied for and to close the subscriptions at any time without notice. Payment at par and accrued
uiterest for certificates allotted must be made on or before March
15, 1922, or on later allotment. After allotment and upon payment
Federal Reserye 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 TM-1922, Series TM2-1922, and Series T M 3 1922, all maturing March 15, 1922, and Series C-1922, maturing April
1, 1922, with any unmatur^ed interest coupons attached, will oe accepted at par, with an adjustment of accrued interest, in payment
for any certificates of the Series TM-1923 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 on the basis and up to the amounts indicated by the Secretary
of the Treasury to the Federal Reserve Banks of the respective
districts.
A. W.
MELLON,
Secretary ofthe Treasury.
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,
March 9, 1922.
To THE
INVESTOR:
Almost any banking institution in the United States Avill 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.
EXHIBIT
48.
[Department Circular No. 285. Loans and Currency.]
UNITED STATES OF AMERICA—THREE AND ONE-HALF P E R CENT
TREASURY CERTIFICATES OF INDEBTEDNESS. SERIES D-1922,
BATED AND BEARING INTEREST FROM APRIL 15, 1922, DUE
OCTOBER 16, 1922.
The Secretary of the Treasury, under the authority of the act
approved September 24, 1917, as ainended, offers for subscription,
at par and accrued interest, through the Federal Reserve Banks,
Treasury certificates of indebtedness, Series D-1922, dated and bearing interest from April 15, 1922, payable October 16, 1922, with
interest at the rate of three and one-half per cent per annum.
208
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 one interest
coupon attached, payable October 16, 1922.
The certificates oi 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 Uiiited 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 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. Payment at par and accrued
interest for certificates allotted must be made on or before April 15,
1922, or on later allotment. After allotment and upon payment
Federal Reserve Banks may issue interim receipts pending delivery
of the definitive certificates. Any (j^ualified depositary wfll be permitted to make payment by credit tor 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 on the basis and up to the amounts indicated by the Secretary
of the Treasury to the Federal Reserve Banks of the respective
districts.
A.
W.
MELLON,
Secretary of the Treasury. .
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,
'.
April 12, 1922.
To THE INVESTOR:
Almost any banldng institution in the United States will, haridle 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.
SECRETARY OF THE TREASURY.
EXHIBIT
209
49.
[Department Circular No. 291. Loans and Currency.]
UNITED STATES OF AMERICA—THREE AND ONE-HALF PER CENT
TREASURY CERTIFICATES OF INDEBTEDNESS. SERIES T D 2 1922, DATED AND BEARING INTEREST FROM JUNE 1, 1922, DUE
DECEMBER 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. Series TD2-1922, dated and bearing
interest from June 1, 1922, payable December 15, 1922, with interest
at the rate of three 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 certfficates will have one interest
coupon attached, payable December 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 (6) graduated additional income taxes, commonly
known as surtaxes, and excess-profits and war-profits taxes, now or
hereafter imposed by the United States^ upon the income or profits
of individuals, partnerships, associations, or corporations. The
interest on an amount of bonds and certificates 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 (6) above.
The certificates of this series will be accepted at par, with an
adjustment of accrued interest, duriiig such time and under siich rules
and regulations as shall be prescribed or approved by the Secretary
of the Treasury, in pajonent of iricome and profits taxes payable a t
the maturity of the certificates. The ceftihcates do nbt bear the
circulation privilege.
The right is reserved to reject, any subscription and to allot less
than the amount of certificates applied for and to close the subscriptions at any time without notice. Payment at par and accrued
interest for certificates allotted must be made on or before June 1,
1922, 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 wiir 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 TJ-1922 and Series TJ2-1922, both maturing Jiine 15,
1922, with any unmatured interest coupons attached, and Victory
notes of the 3 | per cent series (which have been called for redemption
on June 15, 1922), will be accepted at par, with an adjustment of
accrued interest, in payment for any certificates'of the Series
TD2-1922 now offered which shall be subscribed for and allotted.
Victory notes of the 3 | per cent series in coupon form must have all
14263—FI 1922
14
210
.REPORT ON THE FINANCES.
unmatured coupons attached, and if in registered form must be duly
assigned to the Secretary of the Treasury for rederoptipn, in accordance with the gerieral regulatioris of the Treasury Department governing assignments.
As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions and to make allotments on the basis and up to the amounts indicated by the Secretary
of the Treasury to the Federal Reserve Banks of the respective
districts.
A. W. MELLON,
.
•
Secretary of the Treasury.
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,
May 26, 1922.
To
THE INVESTOR:
Almost any banking institution in the United States will handle your subscription
for you, or you may make subscripjtion 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 theni for you, to the Federal Reserve
Bank of your district.
^
EXHIBIT
50.
[Department Circular No. 293. Loans and Currency.]
UNITED STATES OF AMERICA—THREE AND THREE-QUARTERS i?ER
CENT TREASURY CERTIFICATES OF INDEBTEDNESS. SERIES
TJ-1923, DATED AND BEARING INTEREST FROM JUNE 15, 1922, '
DUE JUNE 15, 1923.
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 TJ-1923, dated and
bearing interest from June 15, 1922, payable June 15, 1923, with
interest at the rate of three 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 will have two interest
coupons attached, payable December 15, 1922, arid June 15, 1923.
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 Uriited States, or
by any local taxing authority, except (a) estate or inheritance tances,
and (Jb) graduated additional income taxes, commonly knowri 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
taxes provided for in clause (&) above.
THE TREASURY.
SECRETARY OF
211
The certificates of this series will be accepted at par, with an adjustm^ent 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 a t
the maturity of the certificates/ The certiacates do not bear the
circulation privilege.
The right is reserved to reject any subscription arid to allot less
than the amount of certificates applied for and to close the subscriptions at any tiriie without notice. Payment at par and accrued
interest for certificates allotted must be made on or before June 15,
1922, or on later allotment. After allotment arid upon payment
Federal Reserve Banks may issue interim receipts pending delivery
of the definitive certificates. Any qualified depositary wnl 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 TJ-1922 and Series TJ2-1922, both maturing Jurie 15, 1922,
and Series B-1922, maturing August 1, 1922, with any unmatured
interest coupons attached, and Victory notes of the 3J per cent series
(which have been called for redemption on June 15, 1922), will be
accepted at par, with an adjustment of accrued interest, in payment
for any certificates of the Series TJ-1923 now offered which shall be
subscribed for arid allotted. Victory notes of the 3f p e r c e n t series
in coupon form must have all unmatured coupons attached, and if in
registered form must be duly assigned to the Secretary of the Treasury for redemption, in accordance with the general regulations of the
Treasury Department governing assignments.
As fiscal agents of tne United States, Federal Reserve Banks are
authorized and requested to receive subscriptions and to make
allotments on the basis and up to the amounts indicated by the
Secretary of the Treasury to the Federal Reserve Banks of the respective districts.
A'
'
W. MELLON,
Secretary of the Treasury. '
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,
J une 8, 1922.
To THE
INVESTOR:
Almost any banking institution in the United States will handle'your subscription
for you, or you may make subscrijDtion 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.
212
^
REPORT ON T H E FINANCES.
EXHIBIT
51.
[Department Circular No. 306. Loans and Currency.]
TJNITED STATES OF AMERICA—THREE AND THREE-QUARTERS P E R
CENT TREASURY CERTIFICATES OF INDEBTEDNESS. SEBIES
TS-1923, DATED AND BEARING INTEREST FROM SEPTEMBEB
15, 1922, DUE SEPTEMBER 15, 1923.
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 TS-1923, dated and
bearirig interest from September 15, 1922, payable September 15,
1923, with interest at the rate of three 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 will have two interest
coupons attached, payable March 15, 1923, and September 15,. 1923.
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
mterest on an amount of bonds and certificates authorized by said,
act approved September 24, 1917, and amendments thereto, the
rincipal of which does not exceed in the aggregate $5,000, owned
y any individual^ partnership, association, or corporation, shall be
exempt from the taxes provided for in clause (&) above.
The certificates of this series will be accepted at par, with an
adjustment of accrued interest, during such time and under such
rules and regulations as shall be prescribed or approved by the Secretary of the Treasury, in payment of income and profits taxes payable
at the maturity of the certificates. The certificates do not bear the
circulation privilege.
The right is reserved to reject any subscription and to allot less
than the aniount 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 September
15, 1922, 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 Keserve
Bank of its district. Treasury certificates of indebtedness of Series
TS-1922 and Series TS2-1922, both maturing September 15, 1922,
and Series D-1922, maturing October 16, 1922, 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 TS-1923 now offered which shall b.e subscribed for and allotted.
E
SECRETARY OF THE TREASURY.
213
As fiscal agents of the United States, Federal Reserve Banks are
authorized and requested to receive subscriptions and to make
allotments on the basis and up to the amounts indicated by the Secretary of the Treasury to the Federal Reserve Banks of the respective
districts.
A. W.
MELLON,
Secretary of the Treasury.
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,
September 11, 1922.
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.
EXHIBIT
52.
OFFER TO REDEEM BEFORE MATURITY, TREASURY CERTIFICATES
OF INDEBTEDNESS, SERIES TD-1921.
Secretary Mellon announced that he has authorized the Federal
Reserve Banks on and after Friday, November 25, 1921, and until
further notice, to redeem in cash before December 15, 1921,^ at the
holders' option, at par and accrued interest to the date of such
optional redemption. Treasury certificates of indebtedness of Series
TD-1921, dated December 15, 1920, maturing December 15) 1921.
EXHIBIT
53.
OFFER TO REDEEM BEFORE MATURITY, TREASURY-CERTIFICATES
OF INDEBTEDNESS, SERIES A-1922.
Secretary Mellon announced that he has authorized the Federal
Reserve Banks on and after Monday, January 16, 1922, and until
further notice, to redeem in cash before February 16, 1922, at the
holders' option, at par and accrued interest to the date of such
optional redemption. Treasury certificates of indebtedness of Series
A-1922, dated May 16, 1921, maturing February 16, 1922.
EXHIBIT
54.
OFFER TO REDEEM BEFORE MATURITY, TREASURY CERTIFICATES
OF INDEBTEDNESS, SERIES TM-1922, TM2-1922, AND TM3-1922.
Secretary Mellon announced that he has authorized the Federal
Reserve Banks on and after Thursday, February 23, 1922, and until
further notice, to redeem in cash before March 15, 1922, at theholders' option, at par and accrued interest to date of such optional!
redemption. Treasury certificates of indebtedness of Series TM-1922,.
dated March 15, 1921, Series TM2-1922, dated August 1, 1921, arid!
Series TM3-1922, dated September 15, 1921, all maturing March 15,
1922.
214
RJBPORT ON THE FINANCES.
EXHIBIT
55.
O F F E R TO R E D E E M B E F O R E MATURITY, T R E A S U R Y C E R T I F I C A T E S
OF INDEBTEDNESS, SERIES C-1922.
Secretary Mellon announced that he has authorized the Federal
Reserve Banks on and after Tuesday, March 21, 1922, and until
further notice, to redeem in cash before April 1, 1922, at the holders'
option, at par and accrued interest to date of such optional redemption. Treasury certificates of indebtedness of Series C-1922, dated
November 1, 1921, maturing April 1, 1922.
EXHIBIT
56.
OFFER TO REDEEM BEFORE MATURITY, TREASURY CERTIFICATES
OF INDEBTEDNESS, SERIES T J - 1 9 2 2 AND TJ2-1922.
Secretary Mellon announced that he has authorized the Federal
Reserve Banks on and after Tuesday, May 23, 1922, and until further
notice, to redeem in cash before June 15, 1922, at the holders' option,
a t par and accrued interest to date of such optional redemption;
Treasury certificates of indebtedness of Series TJ-1922, dated June
15, 1921, and Series TJ2-1922, dated December 15, 1921, both maturing June 15, 1922.
EXHIBIT
57.
OiFFER TO R E D E E M BEFORE MATURITY, TREASURY GERTIFICATEJS
OF INDEBTEDNESS, SERIES B-1922.
Secretary Mellon announced that he has authorized the Federal
Reserve Banks on and after Saturday, July 15, 1922, and until further notice, to redeem in cash before August 1, 1922, at the holders'
option, at par and accrued interest to date of such optional redemption, Treasury certificates of indebtedness of Series B-1922, dated
August 1, 1921, maturing August 1, 1922.
E X H I B I T 58.
,
OFFER TO R E D E E M BEFORE MATURITY, TREASURY CERTIFICATES
OF INDEBTEDNESS, SERIES TS-1922 AND TS2-1922.
Secretary Mellon announced that he has authorized the Federal
Reserve Banks on arid after Wednesday, August 23, 1922, and until
further nptice, to redeem in cash before September 15, 1922, at the
holders' option, at par and accrued interest to date of such optional
redemption. Treasury certificates of indebtedness of Series TS-1922,
dated September 15, 1921, and Series TS2-1922, dated November
1,, 1921, both maturmg September 15, 1922.
EXHIBIT
59.
O F F E R 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 C E R T I F I C A T E S
, OF INDEBTEDNESS, SERIES D-1922.
Secretary Mellon announced that he has authorized the Federal
Reserve Banks on and after Monday, September 25, 1922, and until
further notice, to redeem in cash before October, 16, 1922, a t the holders' option, at par and accrued interest to date of such optional redemption. Treasury certificates of indebtedness of Series D-1922,
dated April 15, 1922, maturing October 16, 1922.
SECRETARY OF T H E TREASURY.
EXHIBIT
215
60.
OFFER TO REDEEM BEFORE MATURITY, TREASURY CERTIFICATES OF INDEBTEDNESS, SERIES TD-1922 AND TD2-1922.
Secretary Mellon announces that he has authorized the Federal
Reserve Banks on and after Monday, October 23, 1922, and until
further notice, to redeem in cash beiore December 15, 1922, at the^
holder's option, at par and accrued interest to the date of optional
redemption. Treasury certificates of indebtedness of Series TD-1922,
dated December 15, 1921, and Series TD2-1922, dated June 15, 1922,
both maturing December 15, 1922.
The Secretary at the same time called attention to the general offer
announced by the Treasury on July 26, 1922, in connection with the
call for the redemption of 4f per cent Victory notes, under which the
Federal Reserve Banks are authorized to redeem before December 15,
1922, at the holder's option, at par and accrued interest to the date
of optional redemption, any called Victory notes which may be
presented for prior redemption. Pursuant to the notice of redemption then given, all 4f per cent Victory notes bearing the distinguishing letters A, B, C, D, E, or F, prefixed to their serial numbers, are
called for redemption on December 15, 1922, and from that date
cease to bear interest.
EXHIBIT
61.
[Department Circular No. 270. Public Debt.]
UNITED
STATES
OF AMERICA—TREASURY
CATES, NEW ISSUE.
SAVINGS CEKTEFI-
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,
December 15, 1921.
O F F E R I N G O F TREASURY SAVINGS CERTIFICATES, NEW ISSUE.
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 United States,
beginning December 15, 1921, an issue of United States War-Savings
Certificates, to be known as Treasury Savings Certificates, New
Issue. Payment for or on account of Treasury Savings Certificates
issued hereunder may be evidenced by Treasury Savings Stamps
affixed to Treasury Savings Cards, as hereinafter pirovided. I t shall
liiit be lawful for any one person at any one time to hold United States
Treasury (War) Savings Certificates of any one series to an aiggregate
araount exceeding $5,000 (maturity value). The sum of Uriited
States Treasury. (War) Savings Certificates of all series and issues
outstanding shall not a t . a n y one time exceed in the aggregate
$4,000,000,000 (maturity value). The Treasury Savings Certificates issued within any one calendar year shall constitute a separate
series,' under the serial designation of the year of issued Treasury
Savings Certificates, New Issue, issued during the calendar year
1922 shall constitute the Series of 1922, and certificiates issued during
December, 1921, s h a l l b e included in the Series of 1921 of United
States Treasury (War) Savings Certificates.
216
REPORT ON T H E FINANCES.
DESCRIPTION OF TREASURY SAVINGS CERTIFICATES, NEW ISSUE.
2. Form and Denominations.—Treasury Savings Certificates, New
Issue, will be issued only in. registered form, in denominations, of
$25, $10Q, and $1,000 (maturity value), and will bear the name and
address oi the owner, and the d.ate of issue, which shall be inscribed
thereon by the issuing agent at the time of issue. 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 remain at the Treasury Department at Washington arid 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, which 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 mature five years from the date of issue in each
case, and will be redeemable before maturity at the option of the
owner. The certificates, at the issue prices hereinaiter named,
yield about 4 | per cent per.annuni, compounded semiannually, if
held to maturity, and about 3^ per cent per annum, compounded
semiannually, it redeemed before maturity. 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 valid unless
the owner's name and address and the dat^ of issue are duly inscribed
thereon by an authorized agent at the time of issue. Treasury Savings Certificates, New Issue, are dated December 15, 1921, and will
bear the facsimile signature of the Secretary of the Treasury.
' 3. Issue prices.—^Treasury Savings Certificates, New Issue, are
offered until further notice at the foflowing flat issue prices:
Denomination (maturity value).
$25
100
1,000
Issueprice.
$20
80
800
4. Tax exemption.—Treasury Savings Certificates, New Issue, shall
be exempt, both as to principal and interest, from 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. 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
(Jb) above.
5. Payment at maturity.—Owners of Treasury Savings Certificates,
New Issue, will be entitled to receive at or after maturity, five years
217
SECRETARY OF THE TREASURY.
from the date of issue thereof, the respective face amounts as stated
thereon, upon presentation and surrender of the certificates by mail
or otherwise at the Office of the Secretary of the Treasury, 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 ari 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 oi the death or disability of the owner, a special
form 01 demand for payment prescribed by the Secretary of the
^ Treasury must be duly executed.
6. Payment prior to maturity.—The owner of a Treasury Savings.
Certificate, New Issue, at his option, will be entitled to receive, prior
to maturity, the lesser amount indicated for the respective months
following purchase in the following tables (and in the similar table
appearing on the back of the certificate) with respect to certificates
of the denomination concerned. Payment prior to maturity of the
amount payable in respect of any such certificate will.be made upon
presentation, surrender, and demand made as aforesaid in paragraph
5 hereof, at the Office of the Secretary of the Treasury, Division of.
Loans and Currency, Washington, and upon comphance with all
other provisioris thereof.
Tables showing how Treasury Savings Certificates, New Jssue, inaxase in value during
successive months following purchase.
DENOMINATION OF $25.—ISSUE PRICE, $20.
First year.
Month.
First
Second
Third
Fourth...
Fifth.
Sixth
Seventh
Eighth
Ninth
Tenth
Eleventh
Twelfth
. . ..
$20.00
20.05
20.10
20.15
20.20
20.25
20.35
20.40
20.45
,20.50
20.55
20.60
Second year. Third year.
$20.70
20.75
20.80
20. 85
20.90
20.95
21.05
21.10
21.15
21.20
21.25
21.30
At maturity, 5 years from date of
issue
Fourth year.
$21.45
21.50
21.55
21.60
21.65
21.70
21.80
21.85
21.90
21.95
22.00
22.05
$22.20
22.25
22.30
22.35
22.40
22.45
22.60
22.65
22.70
22.75
22.80
22.85
Fifth year.
$23.00
23.05
23.10
23.15
23. 20
23.25
'23.40
23.45
23.50
23.55
23.60
23.65
25.00
1
DENOMINATION OF $100.—ISSUE PRICE, $80.
MVth.
First
Second
Third
Fourth
Fifth
Sixth
Seventh
Eighth
Ninth
Tenth
Eleventh
Twelfth
-
At maturity, 5 years from date of
issue
First year.
Second year.
Third year.
Fourth year.
$80.00
80.20
80.40
80.60
80.80
81.00
81.40
81.60
81.80
82.00
82.20
82.40
$82.80
83.00
83.20
83.40
83.60
83.80.
84.20
84.40
84.60
84.80
85.00
85.20
$85.80
86.00
86.20
86.40
86.60
86.80
87.20
87.40
87.60
87.80
88.00
88.20
$88.80
89.00
89.20
89.40
89.60
89.80
90.40
90.60
90.80
91.00
91.20
91.40
Fifth year.
$92.00
92.20
92.40
92.60
92.80
93.00
93.60
93.80
94.00
94.20
94.40
94.60
100.00
218
REPORT ON T H E FINANCES.
Tables showing how Treasury Savings Certificates, New Issue, increase in value during
successive-months J olio wing purchase—Continued.
DENOMINATION OF $1,000.—ISSUE PRICE, $800.
Month.
First.
Second 1
• Third
Fourth. .
Fifth
Sixth
Seventh
Eighth
Ninth
Tenth
Eleventh
Twelfth
First year.
:
$800
802
804
806
808
810
814
816
818
820
822
824
Second year.
Tliird year.
Fourth year.
$828
830
832
834
836
838
842
844
846
848
850
852
$'858
860
862
864
866
868
872
874
876
878
880
882
$888
890.
892
894
896
898
904
906
908
910
912
914
,
I
At maturity, 5 years from date of
issue
Fifth year.
-
$920
922
924
926
928
930
936
938
940
942
944
946
1,000
7. Exchanges of denominations.—Treasury Savings Certificates, New
Issue, may be exchanged at the Treasury Department, Washington
(but hoia;t the'Fedei^Reserve Banks, post offices, or other agericies),
for Treasury Savirigs Certificates of the same issue and series with the
same date of issue and date of maturity and inscribed in the same
name but in other authorized denominations to the same aggregate
maturity value.
TRANSIVIISSION OF REGISTRATION STUBS.
8. Transmission of registration stuhs hy post offices.—The original
registration stubs detached from Treasury Savings Certificates, New
Issue, 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 calendar month succeeding the month in which the
certificates are sold.
9. Transmission of registration stuhs hy other issuing agents.—The
original registration stubs detached from Treasury Savings Certificates,
New Issue, sold by other issuing agents, shall be forwarded to the
Federal Reserve Bank from which such certificates were obtained,
with the monthly accounts of such agents. The Federal Reserve
Bank receiving such stubs will see that a registration stub is at hand
for each such v cer tificate reported sold and will forward such stubs,
together with the original registration stubs detached from all Treasury Savings Certificates 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 calendar
month succeeding the month in which the certificates are sold. The
original registration stubs detached from Treasury Savings Certificates sold by the Treasurer of the United States shall be forwarded
to the Secretary of the Treasury, Division of Loans and Currency,
monthly, so as to reach that division not later than the calendar
month succeeding the month in which the certificates are sold.
SECRETARY OF T H E TREASURY.
219
TREASURY SAVINGS STAMPS AND CARDS.
10. Until further notice United States Treasury Savings Stamps
having a face value of $1 each may be purchased at face value, and
Unitea States Treasury Savings Cards may be obtained without cost,
at any authorized agency for the sale of Treasury Savings Certificates, New Issue. Treasury Savings Stamps must be affixed to
Treasury Savings Cards, and when so affixed will be accepted at face
value on account of the purchase price of Treasury Savings Certificates, New Issue, in any denomination, upon presentatiori at a post
office or other authorized agency, provided, that at the same time
the holder of the Treasury Savings Card shall pay any difference
between the aggregate face amount of the stamps affixed to the card
and the issue price pf the Certificate. Treasury Savings Stamps are
iritended 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 intended for direct redemption in
cash. No relief can be given for Treasury Savings Stamps lost,
stolen, or destroyed.
AGENCIES FOR SALE.
11. United States Treasury Savings Certificates, New Issue, in
all denominations may be purchased at the Treasury Department,
Washington, at the Federal Reserve Banks, and from incorporated
banks and trust companies and others which have duly qualified as
collateral agents, and in such denominations as may be prescribed by
the Secretary of the Treasury at post offices of the first and second
class, and such other post offices as the Postmaster General may
designate for the purpose. Until further notice United States Treasury Savings Stamps may be purchased and United States Treasury
Savings Cards may be obtained without cost at any authorized
agency for the^ sale of Treasury Savings Certificates, New Issue.
Sales of all Treasury Savings Securities or Stamps by cash agents or
by sales stations will cease at the close of business on December 31,
1921, and neither cash, agents nor sale stations will be permitted to
obtain Treasury Savings Certificates, Ne:w Issue, for sale. Sales by
the Treasury Department, the Federal Reserve Banks, incorporated
banks and trust companies and other duly qualified collateral agents,
and post offices will be governed, subject to the provisions of this
circular, by the same regulations, mutatis mutandis, as prescribed for
the year 1921 under Treasury Department Circular No. 216, dated
December 15, 1920, except that collateral agents will not be required
to render an account and transmit the proceeds of sales made during
each calendar month until the twentieth day of the succeedirig month.
Collateral agents already duly qualified to a sufficient amount 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 hereunder without further application; and by the receipt or
sale of Treasury Savings Certificates, New Issue, or of Treasury Savings Stamps after December 31, 1921, such collateral agents will 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. Copies of Forms
220
BEPORT ON THE FINANCES.
L. & C. 356, 357, and 358, Avith regard to collateral agents, revised
to cover Treasury Savings Certificates, New Issue, are appended
to this circular as exhibits, and additional copies may be obtained
upon application from the Federal Reserve Banks and the Treasury
Department, Division of Loans and Currency, Washington.
CONVERSION OF POSTAL SAVINGS DEPOSITS.
12. Payment for Treasury Savings Certificates, New Issue, when
purchased at post offices with postal savirigs facilities, may be made
with Postal Savings deposits, and interest upon deposits withdrawn
for this purpose will be allowed at the current postal savings rate, in
accordance with regulations prescribed by the Postmaster General,
from the first day of the month following the date of deposit to the
first day of the month in which such purchase is made.
UNITED STATES THRIFT STAMPS AND THRIFT CARDS.
13. The sale of United States Thrift Stamps and the distribution
of United States Thrift Cards will cease at the close of business on
December 31, 1921. On and after January 3, 1922, Thrift Stamps
then outstanding will be accepted at their face value of 25 cents on
account of the purchase price of Treasury Savings Stamps and of
Treasury Savings Certificates, New Issue, in any denomination, or,
at the option of the holder, may be redeemed at face value in cash,
upon presentation, and surrender to the Treasury Department
Washington, any Federal Reserve Bank, or any authorized post office.
TREASURY SAVINGS
CERTIFICATES, SERIES OF 1918, 1919, 1920,
1921.
AND
14. The issue and sale of Treasury Savings Certificates, Series of
1921, for cash or in exchange for Treasury Savings Stamps will
cease at the close of business on December 31, 1921. The issue
of such certificates after that date in exchange for United States
War-Savings Certificates, Series of 1921, with War-Savings Certificate
Stamps, Series of 1921, affixed, tp the same aggregate maturity value,,
will be continued until further notice at the Treasury Department,
Washington, upon the same terms and conditions, mutatis mutandis,.
as heretofore provided for the exchange of such securities of the
Series of 1920, by Treasury Department Circular No. 217, dated
Deceinber 15, 1920, to which reference is hereby made. The issue
of Treasury Savings Certificates of the Series of 1918, 1919, and.
1920, in exchange for War-Savings Certificates of the same series,
respectively, will be continued until further notice upon the same
terms and conditions as heretofore prescribed, except that afterDecember 31, 1921, such issue will only be made at the Treasury
Department, Washington; Provided, however. That when registerea
War-Savings Certificates of any series are surrendered for such exchange, presentation and surrender must be made through the post,
office of registration. War-Savings Certificates presented for such
exchange 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 certificatesare surrendered. Copies of these forms may be obtained at Federal
Reserve Banks, duly qualified post offices, and the Treasury Depart*
ment. Division of Loans and Currency, Washington.
SECRETARY OF THE TREASURY.
221
MISCELLANEOUS PRO\T[SIONS.
C)
15. Treasury Savings Certificates are not receivable as security for
deposits of public moneys and do not bear the circulation privilege.
16. 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 riot modify or impair the terms
and conditions of Treasury Savings Certificates issued hereunder.
The Secretary of the Treasury may at any time withdraw Treasury
Savings Certificates or Treasury Savings Stamps from sale, refuse to
issue or to permit to be issued any Treasury Savings cards, and refuse
to sell or to perniit to be sold any such certificates or stamps to any
person, firm, corporation, or association.
17. The provisions of Treasury Department Circular No. 149, as
revised June 25, 1921, further defining the rights of holders of Treasury
Savings Certificates, will apply to and govern, subject to the provisions of this circular, the rights of holders of Treasury Savings Certificates, New Issue, issued hereunder, except that in paragraphs
V, VI, X I , and XIV of said circular No. 149, the figure ^^5,000" shall
be substituted for the figure ^'1,000." The provisions of Treasury
Department Circular No. 178, dated January 15, 1920, as amended
and supplemented, with respect, to holdings of United States WarSavings Certificates in excess of the legal limit apply to and govern
Treasury Savings Certificates issued hereunder, subject to the provisions of this circular.
18. 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.
A. W. MELIX)N,'
Secretary of the Treasitry.
TREASURY DEPARTMENT.
Loans and Currency.
Form L. & C. 356 (Revised, 1922).
PLEDGE AGREEMENT.
To the FEDERAL R E S E R V E B A N K OF . .
As Fiscal Agent of the TJnited States:
The undersigned desires to become a collateral a^ent for the issue and eale of Treasury
Savings Certificates, New Issue, and Treasury Savings Stamps, in accordance with the
provisions of Treasury Department Circular No. 270, dated December 15, 1921, as
from time to time amended and supplemented, and to obtain, from time to time, for
sale to the public, as provided in said circular, Treasury Savings Certificates, New
Issue, and Treasury Savings Stamps, in the aggregate amount of $
(such
Treasury Savings Certificates to be taken for this purpose at the maturity value thereof,
and such Treasury Savings Stamps at $1 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, New Issue (at maturity value), and Treasury Savings Stamps (at $1 each), up to b u t not exceeding at
any one time the total amount stated above.
The undersigned agrees that none of such certificates and stamps obtained b y the
undersigned shall be sold and disposed of otherwise than as provided in said circular,
and further agrees faithfully to perform all other obligations to be performed by
collateral agents as therein and herein provided.
The undersigned agrees, in accordance with the provisions of Treasury Department
Circular No. 270, dated December 15, 1921, before or upon delivery to the undersigned
of Treasury Savings Certificates, New Issue, and Treasury Savings Stamps, in the
aggregate amount stated above, to deliver to such Federal Reserve Bank (or to a
custodian designated by it), and to pledge with such Federal Reserve Bank, in negotiable form, and in the case of coupon bonds, with all unmatured coupons attached.
222
REPORT ON THE FINANCES.
the following-described bonds and othfer securities, of the classes described in subdivisions (a), (b), and (c) of Treasury Department Circular No. 92, dated April 17,
1919, authorized to be deposited as collateral security under the terms of said Treasury
Department Circular No. 270:
Description of security.
Collateral value.
...^
...$...........
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, New Issue, and Treasury Savings Stamps, in accordance, with the provisions of said Treasury Department Circular No. 270, 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 Savings Certificates, New Issue, or
Treasury Savings Stamps hereunder or under said Treasury Department Circular No
270, dated December 15, 1921, 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, administrators, 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, NeWvIssue,
or Treasury <Savings 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^afgresaid.
in witness whereof, tlie undersigned has caused this agreement to be executed
under seal by the officer below named thereunto duly authorized by action of its
governing board.
^
D a t e d . . . . . . . . . . . . . . . . . . . . 192..
(Corporate Seal.)
(Signature in full)
.
By..
:
.
(Authorized signature required.)
(Address, number and street)
(City or town) ,
:
(County)
.
• .
.
(State)
.,
'....
223
SECRETARY OF THE TREASURY.
TREASURY DEPARTMENT.
Loans and Currency.
Form L. & C. 357 (Revised, 1922).
Name........
Street and Number.
City or Town...
County....
State..
Your pledge,agreement on Form L. & C. 356 (Revised, 1922) has been approved and
you are hereby appointed a collateral agent for the sale of Treasury Savings Certificates, New Issue, and Treasury Savings Stamps, subject to the provisions of Treasury
Department Circular No. 270, dated December 15, 1921, as from time to time amended
and supplemented.
Federal Reserve Bank of
,
Fiscal Agent of the United States,
By.
Dated
Governor.
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, 1922).
Serial No.
MONTHLY ACCOUNT OP SALES OF TREASURY SAVINGS CERTIFICATES, NEW ISSUE, AND
TREASURY SAVINGS STAMPS, BY COLLATERAL AGENT.
To Federal Reserve Bank of
,
The undersigned hereby renders the following account of transactions in Treasury
, Savings Certificates, New Issue, and Treasury Savings Stamps, from
192.., to
, 192... both inclusive: •
Stock account.
Number of pieces.
Treasury Savings Certificates.
1
Denomination, Denomination, Denomination,
S1,000.
SlOO.
$25.
On hand at closie of preceding month.
Obtained during month.
..;
Total
Sa Ies during month
Unsold stock returned
Net total on hand
"'^
Treasury
Savings
Stamps.
224
REPORT ON THE FINANCES.
Gross amount due in respect of sales.
Number of
pieces.
Issueprice.
Total issue
value.
[$2.*^ rienoTTiinatinn.
Treasury Savirigs Certificates. .-ISIOO denomitiatibn
[S1,(XX) denomiaation
Treasury Savings Stamps
$1.00
Total
The undersigned herewith remits for credit to its account tho 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 exr
change for Treasury Savings Certiflcates, stamps taken at $1 each
Thrift Cards with Thrift Stamps affixed, received in exchange for Treasury Savings Certificates or Treasury Savings Stamps, Thrift Stamps taken at 25 cents
each
Remarks
(Signed).
(Name of Collateral Agent.)
By
(Official signature required.)
(Address, number, and. street)
(City or town)
(County)
(State)
NOTE 1.—^A siniila,r account must be rendered on or before the 20th 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
draft shall have been collected by the Federal Reserve Bank, as fiscal agent of the
United States.
EXHIBIT
62.
[Department Circular No. 301.
Public Debt.]
UNITED STATES OF AMERICA—NEW OFFERING OF TREASURY
SAVINGS CERTIFICATES.
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,
September 30, 1922.
NEW OFFERING OF TREASURY SAVINGS CERTIFICATES.
1. Under authority of Section 6 of the Act of Congress approved
September 24, 1917, as aniended and supplemented, the Secretary of
the Treasury offers, for sale to the people of the United States,
beginning October 1, 1922, an issue of United States War-Savings
SECRETARY OF T H E TREASURY.
225
Certificates, to be known as Treasury Savings Certificates and to be
dated September 30, 1922. Pursuant to the provisions of Treasury
Department Circular No. 270, dated December 15, 1921, Treasury
Savings Certificates, New Issue, offered thereunder, and Treasury
Savings Stamps, are hereby withdrawn from sale at the close of business September 30, 1922, and the sale of such Treasury Savings Certificates, New Issue, and of Treasury Savings Stamps, and the distribution of Treasury Savings Cards will cease at the close of business
on that date. Treasury Savings Certificates, New Issue, issued
during the calendar year 1922, and Treasury Savings Certificates
which may be issued hereunder during the calendar year 1922, constitute the Series of 1922 of Treasury Savings Certificates. I t shall
not be lawful for any one person at any one time to hold United
States Treasury (War) Savings Certificates of any one series to an
aggregate amount exceeding $5,000 (maturity value). The sum. of
Imited States Treasury (War) Savings Certificates of all series and
issues outstanding shall not at any one time exceed in the aggregate
$4,000,000,000 (maturity value). The Treasury Sayings Certificates
issued within any one calendar year shall constitute a separate series,
under the serial designation of the year of issue.
DESCRIPTION OF CERTIFICATES.
2. Form and Denominations.—Treasury Savings Certificates will
be issued only in registered form, in denominations of $25, $100, and
$1,000 (maturity value), and will bear the name and address of the
owner and the date of issue, which shalhbe inscribed thereon by the
issuing agent at the time of issue. 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 deiached and
forwarded in the manner hereinafter directed for transmission to the
Treasury Department at Washington. The registration stubs will
remain at the Treasury Department at Washington and will coiistitute 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, which 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 Eeserve Banks and other issuing agents subject to
the order of the Secretary of the Treasury. The certificates will
mature five years from the date of issue in each case, and will be
redeemable before maturity at the option of the owner. The certificates, at the issue prices hereinafter named, yield about 4 per cent
per annum, compounded semiannually, if held to maturity, and about
3 per cent per annum, simple interest, if redeemed before maturity.
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, or, in the case of the death
of the owner prior to maturity, the certificate may be reissued to the
person entitled thereto, as provided in regulations prescribed by the
Secretary of the Treasury. (See Treasury Department Circular No.
149, Revised, of August 1, 1922.) The certificates will not be valid
, unless the owner's name and address and the date of issue are duly
14263—n 1922
15
226
REPORT.ON T H E FINANCES.
inscribed thereon by an authorized agent at the time of issue.
Treasury Savings Certificates issued hereunder will bear the facsimile
signature of the Secretary of the Treasury.
3. Issue pnc65.^—Treasury Savings Certificates are offered hereunder, until further notice, at the following flat issue prices:
Denomination (maturity value):
$25
100>. . . .•
1,000
:
^ssue price.
$20. 50
^82
820
4. Tax exemption.—Treasury Savings .Certificates 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.
5. Payment at maturity.—Owners of Treasury Savings Certificates
issued hereunder will be entitled to receive at or after maturity, five
years from the date of issue thereof, the respectiye face amounts as
stated thereon, upon presentation and surrender of the certificates
by mail or otherwise at the Office of the Secretary of the Treasury,
Division of Loans and Currency, Washington, D. C., and.upon compliance with all other provisions thereof, provided the form oi demand
lor 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.
.Q. Payme7it prior to maturity.—-Owners of Treasury Savings Certificates issued hereimder, at their option, will be entitled to receive,
prior to maturity, the lesser amount indicated for the respective
months following issue in the following tables (and in the similar
table appearing on the back of the certificate) with respect to certificates oi the denomination concerned. Payment prior to maturity of
the amount payable in respect of any such certificate will be made
upon presentation, surrender, and demand made as aforesaid in paragraph 5 hereof, at the Office of the Secretary of the Treasury, Division of Loans and Currency, Washington, D . C , and upon compliance with all other provisions thereof.
227
SECEETAEY OF THE TEEASUKY.
Tables showing how Treasury Savings Certificates, issued hereunder, increase in value during
'
successive months following issue.
DENOMINATION $25.—ISSUE PRICE $20.50.
Month.
First
Second . .
Third
Fourth
Fifth
Sixth
'Seventh
Eighth
Islinth
Tenth
Eleventh
Twelfth...
Second year.
F i r s t year.
$21.10
21.15.
21.20
21.25
21.30
21.35
21.40
21.45
21.50
21.55
• • 21. 60
21. 6 5 .
$20.50
20.55
20.60
20.65
20.70
20.75
20.80
20.85
20.90
20.95
21.00
21.05
.•
:
A t m a t u r i t y , 5 y e a r s from d a t e of
issue
1
T h i r d year.
F o u r t h year.
$21.70
21.75
21.80
21.85
21.90
'21.90
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
Fifth year.
$22.90
22.95
23.00
23.05
23.10
23.15
23.20
23.25
23.30
23.35
23..40
23.45
•
25.00
'
DENOMINATION ^QF $100.—ISSUE PRICE $82.
. Month.
F i r s t year.
First
1.
Second..-.'.
................:
Third
Fourth
.
Fifth...Sixth
.:........
Seventh....:
;. i
:..
.
Eighth.
Ninth.........
;.....:..;.:.
Tenth.:..
Eleventh
.':
Twelfth..
..,..
Second year.
• $82:00
. 82.20.
82.40
82.60
82.80
.
83.00
83.20
83.40
83.60
, • 83.8.0
84.00
•
84. 20 •
$84.40
84.60
84.80
• 85. 00
85.20
85.40
85.60
.
85.80
86.00
.. 86.20.
86.40
86.60
;
Third year.
Fdurth year.
$89.20'
89.40
89.60
89.80
90.00
90.20
90.40 •
90. 60
90.80
91.00
91.20
91.40
$86. 8 0 '
87..00
87.20
87.40
.87.60
• 87.80
• . 88.00
88.20
88.40
.88.60
88.80
^.-;
89;00
A t m a t u r i t y , 5 years from d a t e of
issue
Fifth year.
.
$91.60
91.80
92.00
92.20
. 92.40
92.60
92.80
93. 00
' 93.20
-. 93. 40
93.60
93.80
100.00
- ^ : - . : • ; • : , : ; , - - -
: . : : : . ^ -
DENOMINATION OF $1,000.—ISSUE PRICE $820.
.
• \.
Month!" ,. /
.' M
First
........!....:....
Second
';.....•,....;... ......
Third
Fourth
.....•..."„...
Fifth
Sixth
:.
Seventh*.-'...i.. . . . . •
' .
Eighth...........................
Ninth 7 . . : . . . . .
Tenth.......;
Eleventh
Twelfth.
A.t m a t u r i t y , 5 years from d a t e of
issue
F i r s t y e a r . . Second year.
'
. $820
• 822 •
• 824
826
•.
828
• 830
832
834
836
:
. 838
840
842
Third year.
. $844
' $868
870
^ 8 4 6
872
848
874
•850
876
852878
854
880
856
882.
SbS'
884
860
:8S6
• 862. . . • v .
864
888
866
890
•••V
F o u r t h year.
,1
• $892
894
896
898
' 900
902
904
906
. 908
910
912
914
Fifth y e a r .
$916
918
920
922
924
926
928
930
932
934
936
938
„•
1,000
7- Exchcinges of denominations.—Treasury Savings Certificates may
be exchanged at the Treasury Department, Division of Loans and
Currency, Washington (but ^not at Federal Reserve Banks, post
offices, or other agencies), for Treasury Savings Certificates of the
same issue and series with the same date of issue and date of maturity
and inscribed in the same name but in other authorized denominations to the same aggregate maturity value.
228
REPORT ON THE FINANCES.
TRANSMISSION OF REGISTRATION STUBS.
8. Transmission of registration stubs by post offices.—The original
registration stubs detached from Treasury Savings Certificates 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 Treasur}^ Department, Division of Loans and Currency,
Washington, D . C , so as to reach the Treasury Department not later
than the calendar month succeeding the month in which the certificates are sold.
9. Transmission of registration stubs by otlier issuing agents.—The
original registration stubs detached from Treasury Savings
Certificates sold by other issuing agents shall be forwarded to the
Federal Reserve Bank from which such certificates were obtained,
with the monthly accounts of such agents. The Federal Reserve
Bank receiving such stubs will see that a registration stub is at hand
for each such certificate reported sold and will forward such stubs,
together with the original registration stubs detached from all
Treasury Savings Certificates issued and sold by it, to the Treasury
Department, Division of Loans and Currency, Washington, D. C , so
as to reach the Treasury Department not later than the calendar
month succeeding the month in which the certificates are sold. The
original registration stubs detached from Treasury Savings Certificates sold by the Treasurer of the United States shall be forwarded
to the Treasury Department, Division of Loans and Currency,
Washington, D. C , so as to reach that division not later than the
calendar month succeeding the month in which the certificates are
sold.
TREASURY SAVINGS STAMPS AND CARDS AND THRIFT STAMPS.
10. On and after October 1, 1922, United States Treasury Savings
Stamps and Thrift Stamps then outstanding will be accepted at their
face value of $1 per stamp for Treasury Savings Stamps and 25 cents
per stamp for Thrift Stamps on account of the purchase price of
Treasury Savings Certificates offered hereunder, in any denomination, or, at the option of the holder, may be redeemed at face value
in cash upon presentation and surrender to the Treasury Department, Office of the Treasurer of the United States, Washington,
J}. C . any Federal Reserve Bank, or any authorized post office.
AGENCIES FOR SALE.
11. United States Treasury Savings Certificates offered hereunder,,
in all denominations may be purchased at the Treasury Department,
^ Washington, D . C , at the Federal Reserve Banks, and from incorporated banks arid trust companies and others which have duly qualified
as collateral agents, and in such denominations as m a y b e prescribed
by the Secretary of the Treasury at post offices of the first and second class, and such other post offices as the Postmaster General may
designate for the purpose. Sales by the Treasury Department, the
Federal Reserve Banks, incorporated banks and trust companies
and other duly quahfied collateral agents, and post offices will be
SECRETARY OF THE TREASURY.
229
governed, subject to the provisions of this circular, by the same
regulations, mutatis mutandis, as "prescribed for the year 1922 under
Treasury Department Circular No. 216, dated December 15, 1920,
as modified and extended by Treasury Department Circular No. 270,
dated December 15, 1921. Collateral agents already duly qualified
to a sufficient amount will not be required to file anew formal applications or pledge agreements and may act as collateral agents for the
sale of Treasury Savings Certificates hereimder without further application; and by the receipt or sale of Treasury Savings Certificates
offered hereunder, such collateral agents will be conclusively pre-'sumed 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. Copies of Forms L. & C.''356, 357,
and 358, with regard to collateral agents, revised to cover the Treasury Savings Certificates offered hereunder, are appended to this
circular as exhibits, and additional copies may be obtained upon
application from the Federal Reserve Banks and the Treasury Department, Division of Loans and Currency, Washington, D. C.
CONVERSION OF POSTAL SAVINGS DEPOSITS.
12. Payment for Treasury Savings Certificates, when purchased at
post offices having postal savings facilities, may be made with Postal
Savings deposits, and interest upon deposits withdrawn for this purpose will be allowed at the current postal savings rate, in accordance
with regulations prescribed by the Postmaster General, from the first
day of the month following the date of deposit to the first da}^ of the
month in which such purchase is made.
MISCELLANEOUS PROVISIONS.
13. Treasury vSavings Certificates are not receivable as security for
deposits of public moneys and do not bear the circulation privilege.
14. The Secretary of the Treasury may at any time withdraw this
circular as a whole or m a k e j r o m time to time any supplemental or
amendatory regulations which shall not modify or impair the terms
and conditions of Treasury Savings Certificates issued hereunder.
The .Secretary of the Treasury may at any time withdraw the Treasury Scivings Certificates offered hereunder from sale, or refuse to sell
or to permit to be sold any such certificates to any person, firm, corporation, or association.
15. The provisions of Treasury Department Circular No. 149, as
revised August 1, 1922, further defining the rights of holders of Treasury Savings Certificates, will apply to and govern, subject to the
provisions of this ch'cular, the rights of holders of Treasury Savings
Certificates, issued hereunder. The provisions of Treasury Department Circular No. 178, dated January 15, 1920, as amencied and
supplemented, with respect to holdings of United States War-Savings
Certificates in excess oi the legal limit apply to and govern Treasury
•Savings Certificates issued hereunder, subject to the provisions of
this circular.
16. Nothing herein contained shall be deemed to annul or revoke
the provisions of paragraph 14 of.Treasury Department Circular No.
-270, dated December 15, 1921, with respect to the issue of Treasury
230
,
EEPOET ON THE FINANCES.
Savings Certificates,Series of 1918,1919, 1920, and 1921, respectively,
in exchange for War-Savings Certificates of the same series, but the
proyisions o{ said paragraph shall remain in full force and effect
until further notice, except that in no event, will War-Savings Certificates of either of said series be accepted in exchange for Treasury
Savings Certificates of the same series after the maturity thereof.
17. Regulations governing the'surrender of unsold Treasury Savings Certificates, New Issue, unsold Treasury Savings Stamps ,and
unissued Treasury Savings Cards are contained in Treasury Department Circular No. 302, dated September 30, 1922, to which reference is hereby made.
18. 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. .
A. W. MELLON,
Secretary of the Treasury.
.TREASURY D E P A R T M E N I \
Loans and Currency.
Form L . & C. 356 (Revised, 1922),
PLEDGE
AGREEMENT.
To the P'EDERAL R E S E R V E B A N K OF
.,
As Fiscal. Agent of the United States:
The undersigned desires to become a collateral agent for the issue and sale of Treasury Savings Certificates, in accordance with the pro \^ is ions of Treasury Department
Circular No. 301, dated September 30, 1922, as from time to time amended and supplemented, and to obtain, from time to tim e.foi^ sale to tlie public, as provided in said circular, Treasury Savings Certificates in the aggregate amount of $
(such Treasury Savings Certificates to be taken for this purpose at the maturity value thereof), and,
as and when such certificates shall be sold and accounted and paid for, to obtain in lieu
thereof, from time to time thereafter, additional Treasury Savings Certificates (at ma- •
turity value) up to b u t not exceeding at any one time the total amount stated above. ^
The undersigned agrees that none' of such certificates obtained by the undersigned'
shall be sold and disposed pf otherwise than as provided in said circular, and further
agrees faithfully to perform all other obligations to be performed b y collateral agents;
as therein and herein provided.
The undersigned agrees, in accordance with the provisions of Treasury Department
Circular No. 301, dated Septeniber 30, 1922, before or upon delivery to the undersigned of Treasury Savings Certificates in the aggregate amount stated above, to deliver to such Federal Reserve Bank (or to a custodian designated b y 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. 301:
Description of security.
Total collateral value.
^Collateral value.
SECRETARY OF THE TREASURY.
231
fo be held by such Federal Reserve Bank, as Fiscal Agent of the Uiiited 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 in accordance with the provisions of said Treasury
. Department Circular No. 301, 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 frdm time to time and to retain any and
all interest upoii 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 Savings Certificates hereunder or under said
Treasury Department Circular No. 301, dated September 30, 1922, said Federal Reserve Bank shall have full power to collect said collateral security or any part thereof
then matm-ed, 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, administrators, 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 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.
In witness whereof, the undersigned has caused this agreement to be executed
under seal by the officer below^ named thereunto duly authorized by action of its
governing board.
Dated
, 192..
(Corporate Seal.)
(Signature in full)
— .
By
.'
(Authorized signature required.)
(Address, number and street)
(City or town)
(County)
(State)
TREASURY DEPARTMENT.
Loans and Currency.
Form L. & C. 357 (Revised, 1922).
Name..
....,
Street and Number
,
City or Town
,
County
,
State
Your pledge agreement on Form L. & C. 356 (Revised, 1922) has been approved
and you are hereby appointed a collateral agent for the sale of Treasury Savings
Certificates, subject to the provisions of Treasury Department Circular No. 301,
dated September 30, 1922, as from time to time amended and supplemented.
Federal Reserve Bank of
,
Fiscal Agent of the UnitedStates,
By.
.,
Governor.
Dated
, 192..
(Original to bo issued to agent, duplicate to be forwarded to the Treasury Department, Division of Loans and Currency, and triplicate to be retained by Federal
Reserve Bank.)
232
R E P O R T O N THE FINANCES.
TREASURY D E P A R T M E N T . «
Loans* and Currency.
Form L. & C. 358 (Revised, 1922).
'
Serial No
MONTHLY ACCOUNT OP SALES OF TREASURY SAVINGS CERTIFICATES BY COLLATERAI*
AGENT.
To Federal Reserve Bank of
,
The undersigned hereby renders the following account of transactions in TreasurySavings Certificates from
.
, 192
, to
, 192...., both
inclusive:
Stoch account.
Number of pieces, Treasury Savings Certificates.
Denomination, Denomination, Denomination,
SlOO.
S25.
S1,000.
On hand at close of preceding rhonth
Obtained during month
•
^
Total
Sales'during month
Unsold stock returned
'
Net total on h a n d . . . . . . :
.
Gross amount due in respect of sales.
Number of
pieces.
•
Issue price.
Total issue
value.
f$25 denomination
Treasury Savings Certificates. .-I$100 denomination
[S1,000 denomination
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 of the United States,'' as follows:
Treasury Savings Cards with Treasury Savings Stamps aflTixed, received in exchange for Treasury Savirigs Certificates, stamps taken at $1 each
Thrift Cards with Thrift Stamps affixed, received in exchange for Treasury Savings Certificaes, Thrift Stamps taken at 25 cents each
Remarks.
(Signed)
(Name of Collateral Agent.)
• By
(Official signature required.)
~ ,
•
(Address, numberand street)
(City or town)
(County)
(State)
NOTE 1.—A similar account must be rendered on or before the 20th 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
draft shall have been collected by the Federal Reserve Bank, as fiscal agent of the
United States.
SECEETARY OF T H E TREASURY.
EXHIBIT
233
63.
[Department Circular No. 308. Public Debt.]
REDEMPTION AND EXCHANGE OF WAR-SAVINGS CERTIFICATES,
S E R I E S OF 1918.
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,
Washington, November 9, 1922.
To Holders of War-Savings Certificates of the Series of 1918, Postmasters, Federal Reserve Banlcs, and Others Concerned:
Uoited States War-Savings Certificates of the Series of 1918
become due.and payable January 1, 1923, according to their terms.
The Secretary of the Treasury offers special facilities tor their redemption and exchange, as follows:
1. General.—Holders of War-Savings Certificates, Series of 1918,
will be entitled to receive on or after January 1, 1923, $5.00 for each
War-Savings Stamp of the Series of 1918 then affixed thereto. Certificates having registered stamps affixed are payable only at the post
office where registered. Unregistered certificates are payable at any
money-order post office or at the Treasury Department in Washington, and will likewise be accepted for payment at the Federal Reserve
Banks and their branches, acting as fiscal agents of the United States.
Holders may, on or after January 1, 1923,. redeem their certificates
in cash, a t ' m a t u r i t y value, or beginning November 15, 1922, may
exchange them, at maturity value, with any necessary adjustments
in cash, for Treasury Savings Certificates, Series .of 1923, issued
pursuant to Treasury Department Circular No. 301, dated September
30, 1922. Certificates presented for either redemption or exchange
inust be duly receipted in the name inscribed thereon, or, in the event
of the death or disability of the owner, in the name of the person
authorized to receive payment under the provisions of Treasury
Department Circular No. 108, dated January 21, 1918, as amended
and supplemented. Banking institutions generally will handleredemptions and exchanges for their customers, but the only official
agencies are the post offices, the Federal Reserve Banks and branches,
and the Treasury Department at Washington, except that duly
qualified collateral agents for the issue and sale of Treasury Savings
Certificates may make exchanges of unregistered War-Savings
Certificates for Treasury Savings Certificates.
2 Cash redemption.—Holders desiring cash redemption must'present their certificates, at their own expense and risk, to the post officewhere registered in the case of registered certificates, or to any moneyorder post office. Federal.Reserve Bank or branch, or the Treasurer
of the United Sta^tes, at Washington, D. C , in the case of unregistered
certificates. Hdlders will facilitate redemption by presenting unregistered certificates through their own banks, for recognized banking
institutions generally will receive such certificates for collection, for
account of the holders, or may cash unregistered certificates for the^
holders and get cash reimbursement therefor, at maturity value, on
or after January 1, 1923, upon surrender of the certificates, dul>
receipted as herein provided, to the Federal Reserve Bank of thedistrict.
234
REPORT ON T H E FINANCES.
(a) Presentation before maturity.—In order to facilitate redemptions
of maturing certificates holders are offered the privilege, beginning
November 15, 1922, of surrendering their, certificates, receipted as of
January 1, 1923, to the post office where registered in the case of
registered certificates, or to any money-order post office. Federal
Reserve Bank or branch, or the Treasurer of the United States, in
the case of unregistered certificates, for redemption as of January 1,
1923. Postmasters receiving certificates in advance of January 1,
1923, for redemption on that date as herein provided, will transmit
the certificates appropriately scheduled, and in the case of registered
certificates with appropriate certification as to discharge of registration, to the nearest Federal Reserve Bank or branch. Payment for
all certfficates thus presented, including certificates presented direct
^ to Federal Reserve Banks and branches or the Treasurer for redemption as of January 1, 1923, will be made by check payable to the order
of the holder, which will be mailed to reach him on or about January
1, 1923.
(&) Presentation at or after maturity.—Cash redemption will be made
only as of January 1, 1923, or on later surrender. Certificates presented on or after January 1, 1923, should be receipted as of the date
of presentation. The Treasurer of the United States and the Federal
Reserve Banks and branches will be prepared to make pa3mient of
matured certificates immediately upon presentation. Post offices are
not required to make payment until ten days after receiving written
demand therefor, but wherever practicable will waive this requirement and make payment at an earlier date. Payment of certificates
.surrendered through banks will be made to the bank through which
presented, while payment of certificates presented direct to post
offices. Federal Reserve Banks and branches, or the Treasurer of the
United States will be made direct to the holder.
3. Exchange for Treasury Savings Certificates.—Holders desiring to
-exchange their War Savings Certificates for Treasury Savings Certificates must present their certificates, at'their own expense and risk,
to the post office where registered in the case of registered certificates,
«or to any money-order post office. Federal Reserve Bank or branch,
o r the Treasurer of the United States at Washington, in the case of
unregistered certificates. Duly qualified collateral agents for the
issue" and sale of Treasury Savings Certificates may receive unregistered War-Savings Certificates, Series of 1918, in exchange for Treasu r y Savings Certificates, and will be entitled to credit, at maturity
value, in their accounts with the Federal Reserve Bank of the district,
for War-Savings Certificates received in exchange, duly receipted,as
herein provided, upon surrender to the Federal Reserve Bank.
Collateral agents may make cash adjustnients in connection with
such exchanges, as herein provided, accounting therefor to the Federal Reserve Bank.
.
0
(a) Presentation between November 15,1922, and January 15,1923.—
Exchanges of War-Savings Certificates, Series of 1918, for Treasury
Savings Certificates, Series of 1923, will be made as of January 1, 1923,
upon applications filed between November 15, .1922, and January 15,
1923, accompanied by the War-Savings Certificates to be exchanged,
•duly receipted as herein provided. Treasury Savings Certificates
dated January 1, 1923, will be delivered promptly upon exchange,
-Tegistered in fhe name and address requested by the holder .of the
SECRETARY OF THE TREASURY.
235
rsurrendered War-Savings Certificates. Cash adjustments, if in favor
•of the United States, must be made upon exchange, or if in favor of
the applicant, will be made as of January 1, 1923, except that in all
•cases where the applicant takes the maximum amount of Treasury
-Savings Certificates covered by the maturity value of the War-Savings
"Certificates surrendered, immediate payment will be made of any
cash dift'erence. Treasury Savings Certificates will not in any event
^be redeemable before the date of issue stated thereon.
(by After January 15, 1923.—Exchanges after January 15, 1923,
^vill be made as of the date of presentation and surrender. The
Treasury Savings Certificates issued upon such exchange w^ill be dated
and carry interest from the date of the exchange, and will be registered in the name and address requested by the holder of the surrendered War-Savings Certificates. All cash adjustments on such
-exchanges, whether in favor of the United States or in favor of the
•applicant, will be made at the time of the exchange.
4. Further Details—(a) Forms.—In presenting War-Savings Certifi'cates. Series of 1918, for redemption or exchange, whether in advance
of January 1, 1923, or on or after that date, holders may use Form
P. D. 750, copies of which may be obtained upon application from
.any post office, any Federal Reserve Bank or branch, or the Treasur}^
Department, Washington, D. C. A copyof this form, giving examples
of exchanges of War-Savings Certificates for Treasury Savings Certifi•^^cates, is attached to this circular as an exhibit.^
(b) Procedure in case of death or disability of the owner.—The provisions of Treasury Department Circular No. 108, dated January 21,
1918, as amended and supplemented, further define the rights of
liolders of War-Savings Certificates and subject to the provisions
-hereof will govern the presentation and surrender of certificates for
redemption or exchange in the event of the death or disability of the
owner. Where certificates are inscribed in the name of a deceased
owner and the estate is being administered in a court of competent
jurisdiction, the certificates should be receipted by the legal representative of the estate and accompanied by a'certificate of his appointm e n t or by duly certified copies of the letters testamentary or letters
of administration, as the case may be. Certificates inscribed in the
nanies of minors should be receipted by the legal guardian, or, if there
is no guardian, by the minor himself if of sufficient competency and
understanding to sign the receipt and comprehend the nature thereof,
or, if not of sufficient competency and understanding, receipted for^
thp minor by the parent or natural guardian with whom the minor
resides. Holders may obtairi further information as to the provisions
of the circular from their own banks or post offices.
(c) Limitation of holdings.—Under the provisions of Section 6 of
the Act of Congress approved Septeniber 24, 1917, as amended, it is
not lawful for any one person at any one time to hold War-Savings
Certificates of the Series of 1918, to an aggregate amount exceeding
^5,000 (maturity value). Holders may, however, redeem their excess
Iholdings in accordance with the provisions of Treasury Department
Circular No. 178, dated January 15, 1920, as amended and suppleinented.
(d) Further information.—Any further information which may be
desired as to the redemption or exchange of War-Savings Certificates
•i5efiE:shlbit65, p. 238.
236
REPORT ON T H E FINANCES.
of the Series of 1918 may be obtained from post offices. Federal
Reserve Banks and branches, or the Treasury Department, Division
of Loans and Currency, Washington, D. C.
5. The Secretary of the Treasury may at any time or from timeto time prescribe supplemental or amendatory.rules and regulations
governing the redemption and exchange of War-Savings Certificates,,
Series of 1918.
A. W.
MELLON,
Secretary of the Treasury.
EXHIBIT
64.
LETTER OF SECRETARY OF THE TREASURY, DATED NOVEMBER
1 3 , 1 9 2 2 , TO B A N K S A N D T R U S T C O M P A N I E S A S TO R E D E M P T I O N
AND E X C H A N G E OF W A R - S A V I N G S C E R T I F I C A T E S OF T H E
S E R I E S OF 1918.
NOVEMBER 13, 1922.
DEAR S I R : About $625,000,000, maturity value, of War-Savings.
Certificates of the Series of 1918 become due and payable January 1,
1923, according to their terms. These certificates are in the hands
of milhons of holders throughout the United States, and for their
convenience the Treasury is offering special facilities for cash redemption or exchange into Treas'ury Savings Certificates of the Series of
1923, including provision for presentation before January 1, 1923.
The Treasury believes that banking institutions generally will wish,
to assist their customers in making redemptions and exchanges, and
I am writing you this letter in order to outhne the principal featuresof the Treasury's plans for dealing with the maturing certificates. In
this connection I am enclosing copies of the official form of Requestfor Redemption or Exchange (Form P. D. 750), and the official Treasury Department Circular (No. 308) setting forth the regulations,
which govern redemption and ^exchange. Additional copies of the
form and circular may be obtained upon application from the Federal
Reserve Banks, which will also be prepared to furnish information
covering specific cases which may arise.
Holders of War-Savings Certificates of the Series of 1918 m a y
either redeem their certificates for cash on o r after January 1, -.1'923,..
or may exchange them at maturity value for the new Treasury vSavings Certificates of the Series of 1923, which will be issued immediately under date of January 1, 1923, when the old certificates are
^ presented between November 15, 1922, and January 15, 1923. Holders who take all the Treasury Savings Certificates on such exchange
that their maturing War-Savings Certificates will purchase will alsoget immediate payment of any cash due them on the exchange.
Exchanges after January 15, 1923, with any necessary adjustments^
in cash, will be made as of the date of the exchange. In order tofacilitate redemptions of certificates which holders desire to redeem
in cash, the Treasury also offers the privilege of advance presentation
of the certfficates for redemption as of January 1, 1923, checks covering the maturity value of the certificates thus surrendered to be
drawn payable to the order of the holder and mailed, by Federal
Reserve Banks and branches or the Treasury Department, as thecase may be, so as to reach the holder on or about January 1, 1923.
SECRETARY OF THE TREASURY.
237
Banks throughout the United States can greatly facilitate these
transactions by extending all possible ai^ to their customers in effect-ing redemptions and exchanges. Recognized banking institutions
which cash unregistered certificates for their customers may get cash
reimbursement therefor, on or after January 1, 1923, from the
Federal Reserve Bank of the district upon surrender of the certificates
to the Federal Reservie Bank, duly receipted as provided in the
official circular, and both the Treasury and the Federal Reserve
Banks will in other respects endeavor to extend every facility for
the handling of redemptions and exchanges through the banks.
Collateral agents for the issue and sale of Treasury Savings Certificates will also be permitted to receive unregistered War-Savings
Certificates on the usual terras in exchange for the new certificates,
.accounting to the Federal Reserve Banks for any cash adjustments.
The Treasury Savings. Certificates offered in exchange give holders
of maturing War-vSavings Certificates an opportunity to reinvest
their money in a similar United vStates Government security having
.all the advantages of War-Savings Certificates and many other
.attractive features. At present prices. Treasury Savings Certificates
.arc issued at $20.50 for.a.,$25 certificate, $82 for a $100 certificate,
.and $820 for a $1,000 certificate, maturing in each case five years
from the date of issue, and yield about 4 per cent interest, compounded semiannually if held to maturity. Certificates having
January 1, 1923, as the date of issue will thus mature on January 1,
1928, and may be redeemed before that date in accordance with
their terms at the redemption values stated on the backs of the
certificates, to yield about 3 per cent simple interest. The Treasury
Savings Certificates now offered are issued under the provisions of
Treasury Department Circular No. 301, dated September 30, 1922,
will be registered on the books of theTreasury Department at Washington in order to protect the owner against loss or theft, and are exempt
•from the normal Federal income tax and from all State and local
taxation (except estate or inheritance taxes). Any one person,
that is to say, any individual (which includes each member of a
family, adults and minors), as well'as any firm, corporation, or
association, may hold Treasury Savings Certificates-of any one
•series to an aggregate amount not exceeding $5,000, maturity value.
Tho wide distribution whic.h War-Savings Certificates had during
the war was due in large measure to the splendid cooperation of the
banks of the country, and now that the time has arrived for the
redemption and refunding of the largest issue outstanding, the
Treasury looks forward with confidence to the continued cooperation
and support of the banks in the furtherance of its plans for dealing
w^ith the maturity. This is a matter in which the banks can render
•effective patriotic service to the Government and at the same time
give valuable assistance to their own customers, b}^ extending all
their facilities for the cashing of the maturing certificates and their
•exchange for new certificates.
• .
Cordially yours,
A. W.
MELLON,
Secretary.
To the PRESIDENT OF THE BANKING INSTITUTION ADDRESSED.
Inclosures: Form P. D. 750, Treasury Department Circular No.
.308, dated November,9, 1922.
238
R E P O R T ON THE FINANCES.
E X H I B I T 65.
FORM OF R E a U E S T FOR REDEMPTION OR EXCHANGE OF WAR-^
SAVINGS C E R T I F I C A T E S , SERIES OF 1918.
(Form P. D 750).
"^
Important.—War-Savings Certificates due January 1, 1923, ma^r
be presented at any time on or after November 15, 1922, for immediate exchange or for payment at maturity. Registered certificates,
must be presented at the post office of registration; other certificates,
may be presented through the applicant's own bank or trust comany, or at any money-oi'der post office, at any Federal Reserve^
ank or branch, or to the Treasurer of the United States, W a s h ington, D. C.
'
S
Cash redemptions of certificates will be made oiily as of January!, 1923, or upon later
surrender.
Exchanges for Treasury Savings Certificates, Series of 1923, will be made as of January I.
1923, upon applications presented between November 15, 1922, and January 15, 1923, and
new; certificates dated January 1, 1923, will be delivered promptly upon surrender. Exchanges after. January 15,1923, will be made as of the date of surrender. Immediate payment will be made of any cash difference due you on exchange if you take the largest
amount of Treasury Savings Certificates you can get for your surrendered War-Savings
Certificates; in all other cases the cash difference due you will be paid as of January l, 1923,
or upon later surrender. Any cash difference due from you must accompany the application. (See examples on other side.)
To the Secretary of the Treasury, Washington, D. C:
The undersigned presents herewith—
War-Sa^dngs Stanips affixed to War-SavingsCer(How many.)
.
tificates, duly receipted in the name inscribed thereon, having
an aggregate maturity value of
Cash, to the amount of
:
(To be applied. on exchange for Treasury Savings Certificates; see
examples 2 on other side.)
Total.
.
. . .
And requests:
Cash, in the amount of....
.- - - -
. ,
• -- -
-
......
(To be paid to" the bank through which.presented; otherwise to the
applicant direct.)
Treasury Savings Certificates, having a maturity value of
$.
1.., as described below,^ at an aggregate issue.'
price of;
....:........
(Issue prices: $20.50 for.aS25 certificate; $82 for a $100 certificate;
and $820 for a $1,000 certificate.)
Total (which must agree with total given above)
.....
1 Issue Treasury Savings Certificates, Series of 1923, as follows:NAME IN WHICH TREASURY
SAVINGS CERTIFICATES ARE
TO BE ISSUED.
NUMBER DENOMIDESIRED. NATION;
POST-OFFICE ADDRESS.
MATURITY
VALUE.
(Signature of applicant.)
(Number.)
(Town or city.)
(Street.)
(State.)
ISSUE
PRICE.
'
SECRETARY OF THE TREASURY.
239
If registered War-Savings Certificates are surrendered, the postmaster, must execute the following form:
I hereby certify that registration cards covering the registration of
.War-Savings Stamps, Series of 1918, being all the regis(How many.)
'
_
,
tered stamps surrendered with this application, are on file in this
[POST-OFFICE office, and that such cards have been marked ' ' P a i d . " I am satisSTAMP.] fied that the applicant who signed this request is the registered
owner of the registered certificates surrendered herewith (or the
authorized payee in case of death or disability.)
(Signature of postmaster.)
(Postoffice.)
(State.)
[SEE OTHER SIDE POR FURTHER DETAILS.]
Exchange your War-Savings Certificates for the new Treasury
Certificates.
War-Savings Certificates, Series ^of 1918, mature January
when $5 will be payable for each War-Savings Stamp, Series
then affixed thereto. The certificates may be redeemed in
or after January 1, 1923, or may be
EXCHANGED AT ANY TIME ON OR AFTER NOVEMBER
TREASURY SAVINGS CERTIFICATES.
Savings
1, 1923,
of 1918,
cash on
15, 1922,
FOR
Treasury Savings Certificates are issued in denominations of $25,
$100, and $1,000 (maturity value), and sold on a discount basis for
$20.50, $82, and $820, respectively. The certificates mature five
years from the. date of issue, or may be redeemed at any time on
demand, and at these prices yield 4 per cent interest per annum,
compounded semiannually, if held to maturity, or 3 per cent simple
interest if redeemed before maturity. The certificates are registered
on the books of the Treasury Department, which protects the owner
against loss or theft, and are exempt from the normal Federal income
tax and from all State, county, and local taxation (except estate or
inheritance taxes). Any one person—that is to say, an individual
(including each member of a family, adults and minors), firm, corporation, or association—may hold Treasury Savings Certificates oi any
one series to an aggregate amount not exceeding $5,000 (maturity
value) at any one time.
Exchanges of War-Savings Certificates for Treasury Savings Certificates, Series of 1923, will be made as of January 1, 1923, upon applications filed between November 15, 1922, and January 15, 1923, and
new (Certificates dated January 1, 1923, will be delivered promptly
upon surrender. Exchanges after January 15, 1923, will be made as
of the date of surrender. War-Savings Certificates will be received
by post offices. Federal Reserve Banks and branches, and the Treasury
in advance of January 1, 1923, for redemption on that date, payment
to be made by check to the order of the holder, which will be mailed
so far as possible to reach the applicant on or about January 1, 1923.
240
REPORT ON T H E , FINANCES.
WIIAT YOU CAN GET BY EXCHANGING YOUR WAR-SAVINGS CERTIFICATES.
MATURITY VALUE
OF W A R - S A V I N G S
STAMPS
SURRENDERED.
81,000
$500..
$100..
$50...
$25...
EXAMPLE
TREASURY
• SAVINGS
CERTIFICATES
IN E X C H A N G E .
NO.
CASH ADJUSTMENT
DUE YOO.
Example 1
Example 2
Example 3
Maturity
Issue
value.
price.
$l,200@$984.00
1,225@1,004.50
1,000@ 820.00
Example 1
Example 2
Example 3
600@ 492.00
625© 512.50
500© 410.00
90.00
[Example 1
•^Example 2
[Example 3
100© 82.00
125© 102.50
75© 61.50
38.50
Example 1
Example 2
Example 3
50©
75©
25©
41.00
61.50
20.50
("Example 1
\Example 2
25©
20.50
41.00
CASH ADJUSTMENT
TO BE PAID
BY YOU.
$16.00
$4.50
180.00
8.00
12.50
18.00
2.50
9.00
11.50
29.50
4.50
16 00
These examples may be applied to other maturity values in the same relation.
The cash adjustments due the United States, as in the examples numbered 2, must be
paid in all cases at the time df exchange. Cash adjustments due the applicant will be
paid on January 1, 1923, or upon later exchange, except that immediate payment of
the cash difference will be made wherever the applicant takes the largest possible
amount of Treasury Savings Certificates for his maturing War-Savings Certificates,
as in the examples numbered 1. It will be noted that in no case will the cash differences payable to applicants before January 1, 1923,-exceed $20, since a cash difference
of $20.50 would make it possible to b u y another Treasury Savings Certificate, and the
applicant must take the full amount of Treasury Savings Certificates in order to get
advance payment of the cash difference. Cash differences in cases like the examples
numbered 3 will not be paid before January 1, 1923.
Consult your banlc or your postmaster.
EXHIBIT
66,
P L A C A R D R E L A T I N G TO T H E E X C H A N G E O F W A R - S A V I N G S C E R TIFICATES FOR NEW TREASTJRY SAVINGS CERTIFICATES.
Exchange your 1918 War-Savings Certificates for the new Treasury
Savings Certificates.
>
The United States Treasury offers you an opportunity'to renew
your investment.
War-Savings Certificates, Series of 1918, mature January 1, 1923,
when $5 will be payable for each War-Savings Stamp, Series of 1918,
then affixed thereto. The certificates may be redeemed in cash on
or after January 1, 1923, or may be exchanged at any time on or
after November 15, 1922, for Treasury Savings Certificates.
Exchanges of War-Savings Certificates for Treasury Savings Certificates, Series of 1923, will be made as of January 1, 1923, upon
applications filed between November 15, 1922, and January 15, 1923,
and new certificates dated January 1, 1923, will be delivered promptly
upon exchange. Exchanges after January 15, 1923, will be made as
of the date of surrender.
SECRETARY OF THE TREASURY.
241
Present 3^our War-Savings Certificates through your own bank or
trust company, or direct to your post office, any Federal Reserve
Bank or branch, or the Treasurer of the United States at Washington.
Registered certificates must be presented to the post office where
registered. War-Savings Certificates will also be received in advance of January 1, 1923, for redemption on that date, payment to
be made by check to the order bf the holder, which will be mailed so
far as possible to reach him on or about January 1, 1923.
Treasury Savings Certificates are issued in denominations of $25,
$100, and $1,000 (maturity value), and sold for $20.50, $82, and $820,
respectively. The certificates mature five years from the date of
issue, or may be redeemed at any time on demand, and at these prices
yield about 4 per cent interest per annum compounded semiannually,
if held to maturity, or about 3 per cent simple interest if redeemed
before maturity. The certificates are registered on the books of the
Treasury Department, which protects the owner against loss or theft,
and are exempt from the normal Federal income tax and from all
State, county, and local taxation (except estate or inheritance taxes).
Any one person—that is to say, any individual (including each member of a family, adults and minors), or any firm, corporation, or
association—may hold Treasury Savings Certificates of any one series
to an aggregate aniount not exceeding $5,000 (maturity value) at any
one time.
Consult your banlc or your postmaster.
A. W.
MELLON,
Secretary of the Treasury.
NOVEMBER 15,
1922.
T. S. S.—22-22.
EXHIBIT
67.
[Supplement to Department Circular No. 178 of January 15,1920. Loans and Currency.]
H O L D I N G S O F U N I T E D S T A T E S T R E A S U R Y (WAR) S A V I N G S C E R TIFICATES IN E X C E S S OF LEGAL LIMIT.
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,
Washington, December 15, 1921.
To Holders of IJnited States War-Savings Certificates and^ Treasury
Savings Certificates, and Others Concerned:
1. Under the provisions of section 6 of the act of Congress approved
September 24, 1917, as amended by section 1402 of the Revenue Act
of 1921, approved November 23, 1921., it is not lawful for any one
erson at any one time to hold United States Treasury (War) Savings
ertificates of any one series, of whatever issue or denomination, tp
an aggregate amount exceeding $5,000, maturity value. The term
/'Treasury (War) Savings Certificates,'^ as used herein,* includes WarSavings Certificates, payments for or on account of which are
evidenced by War-Savings Stamps, and Treasury Savings Certfficates,
issued in denominations of $25, $100, and $1,000, maturity value.
Treasury Department Circular No. 178, dated January 15, 1920, is
accordingly amended, effective November 23, 1921, by changing the
limitation of holdings specified throughout such circular from $1,000,
E
14263—FI 1922
16
242
REPORT ON T H E FINANCES.
maturity value, to $5,000, maturity value. For the purpose of
determining whether the limitation on the holdings of United States
Treasury (War) Savings Certfficates, Series of 1921, by any one
person has been exceeded, War-Savings Certificates, Series of 1921,
and Treasury Savings Certificates, Series of 1921, issued at any time
during the calendar year 1921, and Treasury Savings Certificates,
New Issue, issued during December, 1921, shall all be included within
the Series of 1921 of United States Treasury (War) Savings Certificates. Treasury Savings Certificates, New Issue, issued during the
calendar year 1922 shall constitute the Series of 1922, and such
certificates issued within any subsequent calendar year shall constitute a separate series under the serial designation of the year of
issue. Treasury Savings Stamps, of the face value of $1 each and
noninterest-bearing, are not. included within any series of Treasury
(War) Savings Certificates for the purposes of this circular.
2. By virtue of said act approved November 23, 1921, any.one
person may hold Treasury (War) Savings Certificates of any one
series to an amount not exceeding $5,000, niaturity value, whether
acquired prior or subsequent to November 23, 1921. The amendment does not operate retroactively, however, as to cases in which
War-Savings Certificates or Treasury Savings Certificates in excess of
$1,000, maturity value, were surrendered and final settlement made
before November 23, 1921, pursuant to the law then in force, and
such cases can not be reopened.
A. W.
MELLON,
Secretary of the Treasury.
EXHIBIT
68.
[Department Circular No. 271. Public Debt.]
SURRENDER OF WAR-SAVINGS CERTIFICATES AND STAMPS,x
SERIES OF 1921, TREASURY SAVINGS CEBTIFICATES, SERIES
OF 1921, TREASURY SAVINGS STAMPS, AND THRIFT STAMPS,
HELD BY AUTHORIZED AGENTS AND SALES STATIONS.
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,
Washington, Decernber 20, 1921.
To agents and sales stations for the sale of War-Savings Certificates and
. Stamps, Series of 1921, agents for the sale of Treasury Savings Certificates, Series of 1921, Federal Keserve Banlcs, and others concerned:
1. General provisions.—The sale of United States War-Savings Certificates and Stamps, Series of 1921, of United States Treasury Savings
Certificates, Series of 1921, and of United States Thrift Stamps, will
cease at the close of business on December 31, 1921. The term
'^Treasury Savings Certificates, Series of 1921,'' where it appears in
this circular, shall be deemed to mean Treasury Savings Certificates,
Series of 1921-, issued pursuant to Treasury Department Circular
No. 215, dated December 15, 1920, and not Treasury Savings Certificates, New Issue, of whatever series. Rules and regulations governing
agencies for the distribution and sale, begiiming December 15, 1921, of
Treasury Savings Certificates, New Issue, and of Treasury Savings
Stamps, are prescribed in Treasury Department Circular No^ 270,
dated December 15, 1921. As announced in said Circular, all cash
agents and sales stations for the issue and sale of Treasury (War) Sav-
SECRETARY OF T H E TREASURY.
243
ings securities are discontinued, effective December 31, 1921, except
as provided in paragraph 3 hereof. The sale of War-Savings Stamps
of all series and the sale of Thrift Stamps are absolutely discontinued,
effective December 31, 1921.
SALES STATIONS.
--
2. Every sales station is required to surrender all War-Savings
Certificates and Stamps, Series of 1921, Treasury Savings Stamps, and
Thrift Stamps remaining in its hands unsold at the close of business on
December 31, 1921, to an incorporated bank or trust company in the
Federal Reserve district in which it is located, on or before January 20,
1922, or to the Federal Reserve Bank of the district on or before January 31, 1922. 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 War-Savings Stamps so surrendered at the
rate of $4.24 for each stamp, for Treasury Savings Stamps so surrendered at the rate of $1 for each stamp, and for Thrift Stamps so surrendered at the rate of 25 cents for each stamp. The surrender oF
such certificates and stamps by a sales station may be accepted by the
Federal Reserve Bank or an incorporated bank Qr 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 1921, Treasury Savings Stamps, or Thrift
Stamps must deliver such certificates and stamps on or before January 31, 1922, 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 and kind of
stamps 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 Stamps so surrendered at the rate of^ $4.24 for each
stamp, for the Treasury Savings Stamps so surrendered at the rate of
$1 for each stamp, and for the Thrift Stamps so surrendered at therate
of 25 cents 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 Stamps, Series of 1921, in excess of $5,000
(maturity value), without special authority from the Secretary of
the Treasury.
CASH AGENTS.
3. Every cash agent is required to surrender, on or before January
31, 1922, to the Federal Reserve Bank from which the certificates
and stamps were obtained, all Treasury Savings Certificates, Series
of 1921, War-Savings Certificates and Stamps, Series of 1921, Treasury
Savings Stamps, and Thrift Stamps held by such agent for issue and
sale to the public and remaining unsold at the close of business
December 31, 1921: Provided, however. That any cash agent who
shall have sold Treasury Savings Certificates, Series of 1921, under an
approved partial-payment plan which calls for payments after December 31, 1921, with the final installment on or before September 30,
244
REPORT ON T H E FINANCES.
1922, will be permitted to surrender unsold stocks of such Treasury
Savings Certificates until October 31, 1922. Upon any such surrender each such cash agent will be entitled to cash reimbursement, for
Treasury Savings Certificates and War-Savings Stamps so surrendered at a rate equivalent to the current redemption value thereof
during the month in wliich such surrender is made, not later than
the month in which the certificates or stamps are required to be
surrendered, for Treasury Savings Stamps so surrendered at the rate
of $1 for each stamp, and for Thrift Stamps so surrendered at the
rate of 25 cents for each stamp. No Federal Reserve Bank shall
accept from any cash agent the surrender of War-Savings Stamps,
Series of 1921, and Treasury Savings Certificates, Series of 1921, to
;an aggregate maturity value in excess of the agent's authority to
hold, without special authority therefor from the Secretary of the
Treasury.
COLLATERAL AGENTS.
4. Every collateral agent is required to surrender, on or before
January 31, 1922, to the Federal Reserve Bank from which the certificates and stamps were obtained, all Treasury Savings Certificates,
Series of 1921, War-Savings Certificates and Stamps, Series of 1921,
and Thrift Stamps, not sold before the close of business December 31,
1921, and upon such surrender shall receive appropriate credit for
the certificates and stamps surrendered in its account with the Federal Reservo Bank. Every collateral agent which does not undertake
the sale of Treasury Savings Certificates, New Issue, is required to
surrender, and any other collateral agent at its option may surrender,
unsold Treasury Savings Stamps remaining in its hands at the close
of business on December 31, 1921, and upon such surrender shall
receive appropriate credit for the stamps surrendered in its account
with the Federal Reservo Bank.
POST OFFICES.
5. Post offices will be required to surrender all Treasury Savings
Certificates, Series of 1921, War-Savings Certificates and S t a m p s Series of 1921, and Thrift Stamps held by them for sale and remaining
in their hands unsold at the close of business on December 31, 1921,.
and all'duplicate registration stubs for Treasury Savings Certificates,
Series of 1921, issued by them during the calendar year 1921, in
accordance with instructions issued by the Postmaster General. No
^ post office shall accept the surrender of any unissued Treasury Savings Certificates, War-Savings Certificates and 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;
but nothing herein contained shall be deemed to prevent the redemption by post offices, in regular course, of War-Savings Certificates or.
Thrift Stamps acquired or held by agents or sales stations on their
own account.
SECRETARY OF T H E TREASURY.
SURRENDER
OF DUPLICATE REGISTRATION STUBS
SAVINGS CERTIFICATES.
245
FROM
TREASURY
6. Every cash or collateral agent which qualified for the issue
and sale of Treasury Savings Certificates, Series of 1921, is required,
on or before November 30, 1922, to surrender all duplicate registration stubs from Treasury Savings Certificates, Series of 1921,
issued by such agent, to the Federal Reserve Bank froni which
such certificates were obtained.
SURRENDER OF BLANK WAR-SAVINGS CERTIFICATES, SERIES OF 1921,
AND THRIFT CARDS.
7. Every cash or collateral agent and sales station shall surrender
all blank War-Savings Certificates, Series of 1921, and may surrender all blank Thrift Cards, held by it unissued at the close of
business on December 31, 1921, at the same time and in the same
manner as the War-Savings Stamps, Series of 1921, surrendered
by it in accordance with this circular: Provided, however, That no
credit will be given nor reimbursement made for blank certificates
or cards so surrendered.
FEDERAL RESERVE BANKS.
8. United States Treasury Savings Certificates, Series of 1918.
1919, 1920, and 1921, will cease to be issued by Federal Reserve
Banks in exchange for War-Savings Certificates of corresponding
series at the close of business on December 31, 1921. On.or before
February 10, 1922, Federal Reserve Banks will forward to, the
Register of the Treasury, Washington, all Treasury Savings Certificates, Series of 1918, 1919, 1920, and 1921, War-Savings Certificates
. and Stamps, Series of 1921, and Thrift Stamps remaining in their
hands unissued and unsold on such date. Federal Reserve Banks
will forward to the Register of the Treasury, Washington, on or
before November 10, 1922, all Treasury Savings Certificates, Series
of 1921, permitted to be surrendered by^.cash agents until October
31, 1922, pursuant'to paragraph 3 hereof. Federal Reserve Banks
will also forward to the Secretary of the Treasury, Division of Loans
and Currency, Washington, on or before December 10, 1922, all
duplicate registration stubs from Treasury Savings Certificates,
Series of 1921, surrendered by cash or collateral agents pursuant
to paragraph 6 hereof.
MISCELLANEOUS PROVISIONS.
9. The provisions of this circular as to the surrender of Treasury
Savings Certificates, Series of 1918, 1919, 1920, and 1921, WarSavings Certificates and Stamps, Series of 1921, United States
Treasury Savings Stamps, and United Staties Thrift S^tamps, 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
246
REPORT ON T H E FINANCES.
authorized hereunder to accept the surrender of any such certificates
or stamps from any one 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 Saviiigs Certificates, War-Savings Certificates and Stamps, Treasury Savings
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 Certificates and Stamps, Treasury Savings Stamps, and Thrift Stamps
from incorporated banks and trust companies, in accordance with
the provisions of paragraph 2 hereof. Except as herein otherwise
specifically" provided in paragraph 3, no Federal Reserve Bank is
authorized hereunder to accept the surrender of any certificates,
or stamps (except blank War-Savings Certificates and Thrift Cards)
presented to it after January 31, 1922, without special authority
therefor in each case from the Secretary of the Treasury.
10. All cases in which Treasury Savings Certificates, Series of
1921, War-Savings Stamps, Series of 1921, Treasury Savings Stamps,
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.
11. 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 Treasury (War) Savings
securities, of whatever issue or denomination, issued in pursuance
of the act of September 24, 1917, as amended and supplemented.
A. W.
MELLON,
Secretary ofthe Treasury. "
EXHIBIT
69.
[Department Circular No. 149, Revised. Public Debt.]
REGULATIONS CONCERNING UNITED STATES T R E A S U R Y SAVINGS
CERTIFICATES.
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,
Washington, August 1, 1922..
To Holders qf Treasury Savings Certificates, and Others Concerned:
Treasury Department Circular No. 149, Revised, dated June 25,
1921, as heretofore amended and extended, is hereby amended to
read as follows:
The following Treasury Department regulations further define the
rights of holders of Treasury Savings Certificates of all issues and
series, issued under authority of the act approyed September 24, 1917,
as amended and supplemented, and determine the terms and conditions upoii which such certificates will be payable in case of the
death or disability of the owner:
SECRETARY OF THE TREASURY.
247
CERTIFICATES NOT TRANSFERABLE.
Treasury Savings Certificates are not transferable and are payable
only to the owner named thereon except in case of the death or
disability of the owner and in such case will be payable or may be
reissued as hereinafter provided.
II.
PAYMENT.
1. Owners of Treasury vSavings Certificates will be entitled to
receive, at or after maturity thereof, the respective face amounts as
stated thereon, or at their option will be entitled to receive, prior to
maturity, the lesser amounts indicated for the respective months
following purchase in the table printed on the back of each certificate
with respect to certificates of the denomination concerned. Payment will be made in each case upon presentation and surrender of
the certificates by mail or otherwise at the Treasury Department,
Division of Loans and Currency, Washington, D. C , and upon comJiance with all other provisions thereof, provided the form of demand
or 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 of the owner, the form of
demand for payment on the back of the certfficate should not be
executed, but the special procedure hereinafter prescribed must be
followed.
2. Treasury Savings Certificates will not bear interest after maturity and accordingly should be promptly presented for payment at
maturity.
III.
f
TAX EXEMPTION.
Treasury Savings Certificates 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 the
act approved September 24, 1917, and amendments thereto, the
principal of which does not exceed in the aggregate $5,000, owned
oy any individual, partnership, association, or corporation, shall be
exempt from the taxes provided for in clause (h) above.
248
REPORT ON T H E FINANCES.
^'iv.
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
owner may apply to the Treasury Department, Division of Loans and
Currency, Washington, D: C , on Form L. & C. 275, hereto annexed,
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,
theft, 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 hew 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 surety or
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 surrendered
to the Treasury 'Department, Division of Loans and Currency,
Washington, D. C , for cancellation.
.•
'
v.,
CREDITORS'
RIGHTS.
Payment of Treasury Savings Certfficates 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
agairist 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. Neither
the United States of America nor any officer or employee thereof shall
be a proper or necessary party to any suit or action with reference
to such certificate or the proceeds thereof or be bound by any judgment, order, pr decree rendered or entered therein.
SECRETARY OF THE TREASURY.
249
VI.
HOLDING OF TREASURY SAVINGS CERTIFICATES BY CORPORATIONS,
UNINCORPORATED ASSOCIATIONS, PARTNERSHIPS, AND JOINT STOCK
COMPANIES.
1. Treasury Savings Certificates may be issued and registered in
the name of a corporation, unincorporated association, partnership,
or joint stock company, and should bear an appropriate notation in
the space provided thereon for the name of the owner, indicating
whether the owner is a corporation, unincorporated association,
partnership, or joint stock company. Payment of such certificates
will ordinarily be made by check payable to the order of the corporation, unincorporated association, partnership, or joint stock com-pany. No designation may be made on the certificate or registration stub.of an officer or agent to receive payment on behalf of a
corporation, unincorporated association, partnership, or joint stock
company.
^
2. In the case of a certfficate registered in the name of a corporation, unincorporated association, or joint stock company, the demand
for payment must be signed in the name of the corporation, association, or joint stock company by a duly authorized officer of such corporation, association, or joint stock company; for example, ^'X Company, by John Jones, President." The lact that the demand for payment on such certificates is signed and duly certified in accordance
with Section I I hereof will, in general, be accepted as sufficient proof
that the person signing the demand for payment in such cases is
duly authorized to execute the demand on behalf of the corporation^,
association, or joint stock company; provided, however, that the
officer before whom the demand ior payment is signed and by whom
it is certified shall in no case be the officer signing the demand for
payment.
3. In the case of a certificate registered in the name of a partnership, the demand for payment should be signed in the firm name
by one of the partners as a member of the firm; for example, '^Smith
and Jones, by John Jones, a member of the firm." In such cases
the fact that the demand for payment is signed and duly certified
in accordance with Section I I hereof will, .in general, be accepted
as sufficient proof that the person signing the demand for payment
is a member of the firm.
4. In case payment of a 'certificate registered in the name of a
partnership is demanded by an agent of the partnership, the demand
for payment must be signed in the firm name by such person as
agent; for example, '^Smith and Jones, by Henry White, agent,"
and the certificate must be accompanied by a duly executed power
of attorney signed by all the partners, authorizing such person to
demand and receive payment of the certificate on behalf of the
partnership.
VIL
FIDUCIARIES.
Treasury Savings Certificates may be issued and registered in the
names of fiduciaries in their representative capacities, and should
250
REPORT ON T H E FINANCES.
be inscribed in the names of such fiduciaries', followed by as complete
as possible a description of the capacity in, which they hold the
certificates. Payment of any such certificate will, in general, be
made to such fiduciary without further proof of his authority than
the fact that the deinand for payment on the certificates is duly
signed by him and duly certified in accordance with Section I I
hereof. The demand for payment in such cases, should be signed
b y the fiduciary in the same manner as his name and designation
as fiduciary appear on the face of the certificate. In the event of
the death or disqualification of siich fiduciary, payment or reissue
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 $5,000 limitation on the holdings of any
one person has been exceeded, the full maturity value of Treasury
(War) 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 inaturity value of Treasury (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 $5,000 (maturity value). Certificates so registered will not, however, be considered a part of the holdings of the fiduciary so as to diminish the
$5,000 (maturity value) of certificates of any one series which he
may own in his own right.
VIII.
TREASURY SAVINGS CERTIFICATES ISSUED TO TWO PERSONS.
Treasury Savings Certificates may be issued and registered in the
names of two persons (but not more than two) in the alternative,
as, for instance, '^ John Jones OR Mary Jones." Such certificates
will be payable to either person named thereon 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
registration in the names of two persons is authorized, except to
the extent permitted by Sections VII and X I 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 $5,000 limitation on
the holdings of any one person has been exceeded, the full maturity
value of Treasury (War) Savings Certificates df 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 $5,000 (maturity value)
of the same series.
IX.
INFANT HOLDERS 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, been appointed for an infant owner of a Treasury
SECRETAEY OF THE TREASURY.
251
Savings Certificate, payment of the certificate will be made only to
such guardian, upon presentation of proof satisfactory to the Secretary of the Treasury'01 his appointment and qualification. In general,
such proof should consist of a certificate of the proper court or a certi-fled copy of the order of the court appointing such guardian, showing
t h e appointment and qualification of the guardian, and that such
^appointment is still in full force and effect. I n each case, the certificate of the court should be dated not more than three months prior
to the date of the presentation of such Treasury Savings Certificate
t o the Treasury Department for payment.
3. If no guardian of the property has,, to the knowledge of the
Secretary of the Treasury, been appointed for an infant owner of a
Treasury Savings Certfficate, payment of such certificate will be
made direct to such infant owner, provided such infant is, at the time
payment of such certificate is demanded, of sufficient 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.
I n general, the fact that the demand for payment has been signed by
t h e infant and duly certified in accordance with Section I I hereof,
will be accepted as sufficient proof of such competency and under:standing on the part of such infant. In the event that such infant is
not, in the opinion of the Secretary of theTreasury, 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.
Application should be made on Form L. & C. 277, hereto annexed.
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 made to the infant or to a representative, as hereinbefore provided, upon compliance with the regulations respecting
lost, stolen, or destroyed certificates, contained in Section IV nereof.
X.
DISABILITY OF HOLDERS OF TREASURY SAVINGS CERTIFICATES.
1. Payment of a Treasury Savings Certificate held by a person
who has been legally declared to be incompetent to manage his
affairs and for whose estate a conservator or other legally constituted
representative has been appointed by a court of competent jurisdiction, to the knowledge oi the Secretary of the Treasury, will be
made only to such conservator or other legal representative, upon
the presentation of proof satisfactory to the Secretary of the Treasury
of his appointment and qualification. In general, such proof should
-consist of a certfficate of the proper court or a certified copy of the
order of the court appointing such conservator or other legal representative showing the appointment and qualification of such conservator or other legal representative and that such appointment
is still in full force and eftect. In each case, the certificate of the
court should be dated not more than three months prior to the date
of the presentation of such Treasury Savings Certificate to the
Treasury Department for payment.
252
REPORT ON T H E FINANCES.
2. In general, the fact that the demand for payment on a Treasury
Savings Certificate has been signed and duly certified in accordance,
with Section I I hereof, will "be accepted as sufficient proof of thecompetency and understanding of the person signing the demand,
for payment.
XI.
REGISTRATION
OF TREASURY SAVINGS CERTIFICATES IN
BiENEFICIARY.
FAVOR
OF
1. Treasury Savings Certificates may be issued and registered
payable to a single designated beneficiar}^ in case of death of the registered owner, as, for instance, ^'John Smith, payable on death toMary Smith." In that event the issuing agent shall at the time of
issue inscribe on the certificate and on the registration stub the words
^^ Payable on death to
," inserting the name and address of
the beneficiary. Such certificates will be payable to the registered
owner during his lifetime, and to the beneficiary upon death of the
registered owner, provided the beneficiary be then living. In that
case the beneficiary will be entitled either to reissue pr to payment of
the certificate, at his option. Application should be made on Form
L. & C. 274, hereto annexed. Reissue of a certificate registered payable to a beneficiary Will be made only in the name of such beneficiary
and only where upon reissue the beneficiar}^ will not hold Treasury
(War) Savings Certificates of the same series to an aggregate amount
exceeding $5,000 (maturity value). If the beneficiary shall predecease the registered owner, the certificate will be payable to theowner as though such beneficial registration had not been made.
Second registration in favor of ariother beneficiary, or change of
beneficiary, will not be permitted.
2. Should the beneficiary die after the death of the registered!
owmer, but before payment of the certificate, the regulations coveringpayment or reissue of certificates held by a deceased owner shaft
govern the payment or reissue of the certificate as though the beneficiary were such deceased owner.
XII.
PAYMENT OR REISSUE OF TREASURY SAVINGS CERTIFICATE HELD BY
DECEASED OWNER.
In the case of the death of the registered owner of a Treasury
Savings Certificate (other than a certificate registered payable to
a beneficiary), payment will be made, or at their election the certificate will be reissued, to the persons and in the manrier hereinafter
provided:
(a) 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, and
reissue will be made only at his request. Application for payinent pr
reissue of the certificate should be made on Form L. & C. 279, hereto
annexed Administration will be required prior to payment or
reissue of a Treasury Savings Certfficate in all cases where the grbss
personal estate of the deceased owner exceeds $500 in value, unless
SECRETARY OF THE TREASURY.
253
fit appears to the satisfaction of the Secretary of the Treasury that
•administration of the estate of such decedent is not required in the
S t a t e of the decedent's domicile.
(b) 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 appears to the satisfaction of the Secretary of the
Treasury that administration of the estate of such decedent is not
required in the State of the decedent's domicile, the certificate will
be paid or reissued to and on the demand of the persons equitably
entitled thereto in the opinion of the Secretary of the Treasury, in
the following order of classes:
First. The certificate will be paid to the creditor for the reasonable
"funeral expenses, expenses of the last illness, or other preferred
claims against the decedent's estate, or person paying such creditor,
"to the extent of such preferred claims. Application should be made
-on Form L. & C. 273, hereto annexed.
Second. The certificate will be paid or reissued to the 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 or reissue of a single, certificate to more than one person.
Application should be made upon Form L. & C. 276, hereto annexed.
(c) In case the gross personal estate of the decedent exceeds $500
i n value, and it is claimed that administration of the estate is not
irequired in the State of the decedent's domicile, the application
. for payment or reissue of the Treasury Savings Certificates owned
by the decedent miist be accompanied by an agreement by all of
t h e legal heirs of the decedent who are of lawful age and competent
iand by the legally appointed guardians or conservators of any minor
or incompetent heirs, duly acknowledged under oath before a notary
pubhc or other officer authorized by law to administer oaths, showi n g t h a t such persons constitute all the legal heirs of the estate of
the decedent or their legally appointed representatives; that all
debts owing by the decedent have been paid; that administration
•of the estate of the decedent is not required in the State of the decedent's^ domicile, and that all of such heirs or their legal representatives have agreed on the. distribution of the estate and consent to
;payment or reissue of the Treasury Savings Certificates being made
t o the claimant who executes the application. Such agreement must
^Iso be accompanied by the affidavits of two disinterested^ persons,
preferably pubhc officers of the United States or executive officers
of incorporated banks or trust companies, showing that the affiants
are responsible persons known to them, whose statements are worthy
of the confidence of the Treasury Department. The Secretary of
the Treasury may further require in special' cases an affidavit or
certificate from a practicing attorney or judicial officer of the State
of the decedent's domicile, showing, that administration of the estate
of the decedent is not required in such State, and referring specifically
to any statutes or any judicial decisions of the courts of such State
under which exemption from administration is claimed.
254
,
REPORT ON T H E FINANCES.
XIII.
'
REISSUE.
1. In case of the reissue of a Treasury Savings Certificate pursuahfe
to the provisions hereof, the original certificate will be retired and a.
new certificate of the same issue, series, denomination, date of issue,.,
and maturity, but bearing a new serial number and inscribed a n d
registered in the name of the person entitled io reissue of the original
certificate, will be issued and registered. Reissue of certificates m a j
be effected only at the Treasury Department, Division of Loans and
Currency, Washington, D. C , on application duly executed by the*
person entitled to demand reissue of the certificate on the form pre^
scribed for such purpose.
2. A Treasury Savings Certificate registered payable to a single^
designated beneficiary in case of death of the registered owner may
be reissued in the name of such beneficiary on the death of the registered owner in accordance with the provisions of Section X I hereof.
3. A Treasury Savings Certificate registered in the name of Ht.
•decedent may be reissued to the person entitled, in accordance with
the provisions of Section X I I hereof.
4. In no case will a Treasury Savings Certificate be reissued in tho*
name of any person, if tipon such reissue such person will hold Treasury (War) Savings Certificates of the same series to an aggregate
amount exceeding $5,000 (maturity value).
XIV.
INHERITANCE TAXES.
Payment or reissue of Treasury Savings Certificates will be made^
without any deduction for inheritance, estate, or transfer taxes,
either State or Federal, on death of a deceased owrier; 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 w^hom
payment or reissue of the certificates is made shall be liable for all
such taxes, if any shall be due, and'the lien thereof shall attach \or
the proceeds gf the certificates in his hands.
XV.
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 Tr.easury, upon,
being satisfied of the identity of the person, will accept the owner's,
demand for payment, provided both the new and the original name
are signed.
XVI.
LIMITATION IN AMOUNT.
Under the provisions of section 6 of the act of Congress approved
September 24, 1917, as amended and supplemented, it is not lawful
for any one person at an}^ one time to hold Treasury (War) Savings
Certificates of any one series (of whatever issue or denomination) to
255
SECRETARY OF THE TREASURY.
an aggregate amount exceeding $5,000 (maturity value). As to each
series, the issue of Treasury Savings Certificates and the issue of WarSavings Certificates are included within the same series of Treasury
(War) Savings Certificates for the purpose of determining whether
the limitation on the holdings of any one person has been exceeded.
For further regulations governing holdings of Treasury (War) Savings Certificates in excess of the legal limit, see Treasur}^ Department
Circular No. 178, dated January 15, 1920, as amended and supplemented.
XVII.
ADMINISTRATION.
1. The administration 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 or reissue, tho
fact that the demand 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 designated by the Secretary of the Treasury for the purpose.
2. 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 pursuant to the act of Congress approved September 24, 1917, as amended and supplemented.
A. W. MELLON,
Secretary of the Treasury.
TREASURY DEPARTMENT
(^DIVISION OF LOANS AND CUREENCY
F o r m L &C 273
Ed. 5,000—Aug. 1-22
APPLICATION OF U N D E R T A K E R , DOCTOR, OR O T H E R P R E F E R R E D CREDITOR FOR
M E N T OF T R E A S U R Y S A V I N G S C E R T I F I C A T E S .
PAY-
This application should not he executed if letters of administration or letters testamentary have been
issued upon the estate of the deceased, in which event Form L & C 279 should be filled out, and forwarded,
with the Treasury Savings Certificates and certified copies of such letters or a duly executed certificate f
appointment of such legal representative, to the Treasury Department, Division of Loans and Currency,.
Washington, D. C.
STATE
OF
.'.. . \
COUNTY OF
J "
, being duly sworn, deposes and says:
(Name of claimant.)
I am the
'.
(Undertaker who buried—Doctor who attended in last illness—Persen who paid such undertaker or doctor.)"
, who died intestate at
(Name of deceased.)
, on the(Place of death.)
day of
, 19 -., leaving the following-described T'reasury Savings Cer-^
tificates, transmitted herewith:
SERIES.
DENOMINATION.
SERIAL
NUMBER.
NAME AND ADDRESS OF REGISTERED OWNER AS THEY
APPEAR ON THE CERTIFICATE.
256
•
REPORT O N ' T H E FINANCES.
The gross personal estate of the decedent, including War-SavingsjCertificates and
Treasury Savings Certificates, does not exceed $
, to the best of m y know I
edge and belief. Administration of the estate of the deceased has not been asked foi
or granted, and to the best of my knowledge and belief will not be asked for or granted.
The reasonable charge for said services rendered is $
., as evidjsnced b y t h e
bill hereto attached. I have
,
On tlie
. (Stite whether p.iymeat h^> been received in part, and if so, the amount thereof.)
next page is a certificate b y a near relative of deceased to the accuracy of this claim.
I hereby make demand for the payment of $
from the proceeds of the abovedescribed Treasury Sa^dngs Certificates held b y the deceased, to which payment 1
' am entitled under the regulations prescribed by the Secretary of t h e Treasury.
Witness
."
•
(Signature.)
Address
(A witness is not required unless applicant.signs by X mark.)
Address
(Number.)
(Street.)
(City.)
(State.)
Subscribed and sworn to before me by the above-named claimant this
,19
..
"
[OFFICIAL SEAL.]
day of
Notary Public.
My commission expires
, 19...
This appillcation must be sworn to before a notary public, or other officer authorized by law to
administer oatlis, and unless authenticated bythe official impression seal of the officer should be accompanied by a certificate from the proper official, showing that the officer was in commission on the date
of the acknowledgment.
I t must further be acknowledged on the following form b y the applicant in the presence of, and duly certified by, a United States postmaster (who should also affix t h e
ofiicial postmark of his office), an executive officer of an incorporated bank or trust
company (who should also affix t h e corporate seal of t h e bank or trust company), or
any otlier person duly designated bj^ the Secretary of the Treasury for the purpose.
Personally appeared before me
, known
(Name of applicant.)
or proved to me to be
the original owner
(Undertaker who buried—Doctor who attended in last illness—Person who paid such undertaker or doctor.)
whose name is inscribed on said certificates, and acknowledged the within demand
to be his free act and deed.
Witness m y hand and official designation:
(Signature of attesting officer.)
[SEAL O R STAMP.]
(Official designation.)
Dated at
, 19...
CERTIFICATE BY A N E A R RELATIVE O F D E C E A S E D AS TO ACCURACY OP P R E F E R R E D
CLAIM.
,19..
I hereby certify that the bill submitted b y
for. the sum of $
for
,.
(Funeral, medical, or other preferred.)
expenses of
:
, deceased, is correct and just and •
(Name of owner of certificate.)
remains unpaid.
(Signature or X mark.)
(Relationship.)
Address
(Number.)
(Street.)
(City.)
(State.) *
Witness
(A witness is not required unless applicant signs by X mark.)
Address
The Treasury Savings Certificates must be forwarded with this application.
257^
SECRETARY OF THE TREASURY.
TREASURY DEPARTMENT
•
DIVISION OF LOANS AND CURRENCY
-
o
Form L & 0 274
Ed. 5,000—Aug. 1-22
, APPLICATION B Y B E N E F I C I A R Y FOR P A Y M E N T OR R E I S S U E
CERTIFICATES.
STATE OF
COUNTY OF.
O F T R E A S U R Y S A V I N G S .'
* \ss:
:
, being duly sworn, deposes and says:
(Name of applicant.)
I am the identical person designated on the following-described Treasury Savings •
Certificates, transmitted herewith, as beneficiary thereof in case of death of the registered owner, to wit:
SERIES.
NAME AND ADDRESS AS THEY APPEAR ON THE
CERTIFICATE.
SERIAL
NUMBER.
DENOMINATION.
Registered Owner
B eneficiary
;.
^
The registered owner thereof was
,, who
(Name of registered owner.)
died at
, on
• (Place of death.)
, 1 9 . . ; and the decedent's resi(Date of death.)
•dence at the date of his death was
'
(Number.)
(Street.)
(Town or city.)
(State.)
. Hereto attached is a certificate of death of said registered owner, issued b y the" public authorities of the place of death.
(Strike out if no public certiflcate is issued in'the community and see^that the affidavit of death on
the next page is properly^^executed.)
^ I am the person entitled to payment of the above-described certificates, and hereby
make demand for < P ^ ^ ° ^ i thereof to me. The decedent's estate does not hold, and.
\ reissue J
•
• •
(Strike out method not desired.) .
incase of such reissuance I shall not hold. Treasury (War) Savings Certificates of any ,
one series, of whatever issue or denoinination, to an aggregate amount exceeding
-$5,000, maturity value.
Witness
(A witness is not required unless applicant signs by X mark.)
Address
(Signature or X mark of applicant.)
Address
,.
(Number.)
(Town or city.)
Subscribed and sworn to before me this
[OFFICIAL SEAL.]
(Street.)
(State.)
day of
, 19..
'
Notary Public.
My commission expires
,19..
This application must be sworn to before a^notary public, or other officer authorized by law to admiriister
•oaths, and unless authenticated by the official impression seal of the officer should be accompanied by a
certificate from the proper official, showing that the officer was in commission on the date of the
acknowledgment.
I t must further be acknowledged on the following form by the applicant 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.
Personally appeared before me
- . . , known
(Name of applicant.)
^or proved to me to be the designated beneficiary of the within-described certificates,
and acknowledged the within demand to be his free act and deed.
Witness m y hand and official designation:
.
.
[SEAL OR STAMP.]
(Signature of attesting officer.)
<Official designation.)
Dated at
14263—FI 1922-
., 1 9 . .
-17
258
REPORT ON T H E F I N A N C E S .
AFFIDAVIT OP DEATH OP DECEASED OWNER.
(To be used only when the authorities of the place of death do not issue a death certificate.)
STATE OF
COUNTY OF
* >ss:
Personally appeared before me
and
residents of the
of
, county of
State of
, who, being severally sworn, declare, each for himself,
t h a t t h e y were acquainted with the said decedent, and know t h a t he is deceased;
t h a t they know the claimant to be the identical person designated as beneficiary
of t h e aboverdescribed Treasury Savings Certificates in case of the death of the registered owner thereof; and further, t h a t t h e y have no interest directly or indirectly
in this claim.
(Signature.)
(Address.)
(Signature.)
Subscribed and sworn to before me this
[OFFICIAL SEAL.]
.
(Address.)
day of
19..
Notary Public.
My commission expires
, 19..
This affidavit must be sworn to before a notary public, or other officer authorized by law to administer
oaths, and unless authenticated by the official impression seal of the officer should be accompanied by a
certificate from the proper official, showing that the officer was in commission on the date of the acknowJedgment.
The Treasury savings certificates must be forwarded with this application.
TREASURY DEPARTMENT
.
DIVISION OF LOANS AND CURRENCY
Form L & C 275
Ed. 10,000—Aug. 1-22
APPLICATION FOR THE I S S U E OF DUPLICATES OR FOR PAYMENT .OF LOST, STOLEN, OK
DESTROYED TREASURY SAVINGS CERTIFICATES.
STATE OF
,
COUNTY O F .
r.
, being duly sworn, deposes and says:
(Name of applicant.)
I am.the original owner of the following-described Treasury Savings Certificates:
SERIES'.
DENOMINATION.
SERIAL
NUMBER.
NAME AND ADDRESS OF REGISTERED OWNER AS
THEY APPEAR ON THE CERTIFICATE.
i
,.
....
which have been
in the following manner:
(Lost, stolen, or destroyed.) State fuUy every material fact and circumstance as to the loss, theft. Or destruction of the above-described certificates, showing where the certificates were placed or last seen; whether under lock and key;
whether accessible to persons other than the owner; in case of theft, what is known of the identity of the
thief and what steps have been taken to recover the certificates; in case of loss, how it occurred and whether
thorough search has been made; in case of destructiori, how it occurred, whether any porticwis of the certificates remain, and how the fact of destruction is known. If any portions of the certificates remain, they
should be carefully packed and forwarded with this application. In case the certificates were acceSvSible
to any person other than the apphcant at the time of the alleged loss, theft, or destruction, an affidavit by
such person should be presented setting forth his knowledge of the existence of the certificates and of the
fact of their loss, theft, or destruction. In case it is not possible to procure such affidavits the affidavit of
the applicant should state why such affidavits are not presented.
Annexed hereto is an affidavit of a responsible person to whom I am well known,
which sets forth his belief t h a t the statements herein are worthy of the confidence
of t h e Treasury Department.
N
SECRETARY OF THE TREASURY.
259
o
I hereby make demand for payment (or duplicates) of the above-described certifi-.
(Strike out method not desired.)
cates, to which I am entitled under the regulations prescribed by the Secretary of
the Treasury. I dc not hold Treasury (War) Sa\dngs Certificates of any one series,
of whatever issue or denomination, to an aggregate amount exceeding 15,000, maturity
value.
Witness
(A witness is not required unless apphcant
signs by X mark.)
(Signature of apphcant.)
Address
Address
(Number.)
(Street.)
(Town or city.)
Subscribed and sworn to before me this
(State.,)
day of
, 19
[OFFICIAL SEAL.]
My commission expires
Notary Public.
, 19
This appUcation must be sworn to before a notary pubhc, or other officer authorized by law to administer
. oaths^ and unless authenticated by the official impression seal of the officer should be accompanied by a
certificate from the proper official, showing that the officer was in commission on the date of the.aclcnowle'dgment.
If payment is demanded, the application must further be acknowledged on the
following form by the applicant 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.
Personally appeared before me
, known or proved
(Name of applicant.)
to me to be the original owner whose name is inscribed on the within-described certificates, and acknowledged the within demand to be his free act and deed.
Witness my hand and official designation:
(Signature of attesting officer.)
[SEAL OR STAMP.]
Dated at
, 19
(Official designation.)
( This affidavit must he executed by a responsible person to whom the applicant is well known, preferably an officer
ofthe United States, or an executive officer of an incorporated bank or trust company.)
STATE OP
COUNTY OF
, being duly sworn, deposes and= says:.
I have known
, who is the identical person
named in the above application, for
years, and I believe his statements in
the within affidavit to be" worthy of the confidence of the Treasury Department.
(Signature of deponent.)
Address
(Number.)
(Street.)
(Town or city.)
Subscribed and sworn to.before me this
day of
(State.)
, 19
[OFFICIAL SEAL.]
Notary Public.
My commission expires
, 19
This affidavit must be sworn to before a notary pubhc, or other officer authorized by law to administer oaths, and unless authenticated by the official impression seal of the officer should be accompanied
by a certificate from the proper official .showing that the officer was in commission on the date of the
acknowledgment.
^
260
REPORT ON T H E
FINANCES.
TREASURY DEPARTMENT
DIVISION OF LOANS AND CURRENCY
Form L. & C. 276
Ed. 25,000—Aug. 1-22.
APPLICATION FOR P A Y M E N T OR R E I S S U E OF T R E A S U R Y S A V I N G S C E R T I F I C A T E S H E L D
B Y D E C E A S E D O W N E R TO P E R S O N O T H E R T H A N A D U L Y A P P O I N T E D L E G A L R E P R E S E N T A T I V E OR P R E F E R R E D C R E D I T O R .
(See instructions on page 3 of this form.)
STATE OF...
COUNTY OF.
* >ss:
, being duly sworn, deposes and says':
(Name of applicant.)
I reside at
, and am
(Residence of applicant.)
, deceased.
^
, of
(Relationship to decedent, if any.)
Said decedent died on the
(Name of owner of certificates.)
day of
(Date of death.)
, 19.., at
, and was at the time
(Place of death.)
of death legally domiciled at
, county of
,
State pf
No executor or administrator of said decedent has
been appointed by any court. The funeral expenses and expenses of last illness
have been paid by
, as evidenced by the attached
receipted bills, out of funds of the estate (or out of personal funds).
(Strike out words not applicable.)
T o t h e b e s t of m y k n o w l e d g e a n d belief s a i d d e c e d e n t w a s a t t h e t i m e of h i s d e a t h
t h e o w n e r of t h e f o l l o w i n g - d e s c r i b e d T r e a s u r y S a v i n g s C e r t i f i c a t e s , t r a n s m i t t e d
herewith:
SERIES.
DENOMINATION.
SERIAL
NUMBER.
NAME AND ADDRESS OF REGISTERED OWNER AS THEY
APPEAR ON THE CERTIFICATE.
H e r e t o a t t a c h e d is a c e r t i f i c a t e of d e a t h i s s u e d b y t h e p u b l i c a u t h o r i t i e s .
(Strike out.if no pubhc certificate is issued in the community and see that affidavit of death on next
page is properly executed.)
The value of the gross personal estate of the decedent, including War-Savings
Certificates and Treasury Savings Certificates, to the best of my knowledge and
belief, does not exceed S
;
(If the gross personal estate exceeds $500, the procedure prescribed in paragraph 2 of Instrudtions must
be foUowed.)
'
'
^
To the best of my knowledge and belief the deceased left no will, and administration of his estate has not been and will not be asked for or granted.
Said decedent left surviving only the following near relatives:
Extreme care must be taken to see that all information is fuUy given, in accordance with attached instructions; if the space provided below is inadequate, additional sheets may be prepared and made a
part of this apphcation.
(Name.)
(Relationship.)
(Age.)
(Name.)
(Relationship.)
(Age.)
(Address.)
(Name.)
(Relationship.)
(Age.)
^ (Address.)
(Name.)
(Relationship.)
'(Age.)
(Address.)
(Name.)
(Relationship.)
• (Age.)
(Address.)
'
(Address.)
SEGRETARY OF THE TREASURY.
,
261
I do not know of any other person who claims to be entitled to payment of Treasury
Savings Certificates standing in the nabae of said decedent, except the following:
(If none, insert''None.")
I am the person entitled to payment of the above-described certificates, and hereby
make denaand for I ^^1^?^ \ ^^^^^^^ to °^®- Decedent's estate does not hold, and in
(Strike out method not desired.)
case of such reissuance I shall not hold, Treasury (War) Savings Certificates of any
one series, of whatever issue or denomination, to an aggregate amount exceeding
$5,000, maturity value.
Witness
(A witness is not required unless applicant
signs by X mark.)
Address
(Signature or X mark of apphcant.)
Address
;
(Number.)
(Town or city.)
Subscribed and sworn to before me this
day of
. (Street.)
(State.)
, 19..
[OFFICIAL SEAL.]
Notary Public.
My commission expires
, 19..
This apphcation must be sworn to before a notary pubhc, or other officer authorized by law to administer
oaths, and unless authenticated by the official impression seal of the officer should be accompanied by a
certificate from the proper official, showing that the officer was in commission on the date of the acknowledgment.
It must further be acknowledged on the following form by the applicant 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.
Personally appeared before me
1
,. known or proved
(Name of apphcant.)
to me to be
of the original owner whose name is in(State connection with original owner.)
scribed on the within-described certificates, and acknowledged the above demand to
be his free act and deed.
Witness my hand and official designation:
(Signature of attesting officer.)
[SEAL OR
STAMP]
Dated at
(Official designation).
,19..
AFFIDAVIT OF DEATH OF DECEASED
OWNER.
To be used only when the authorities of the place of death do not issue a death certificate.
STATE
OF.
COUNTY
OF
,
Personally appeared before me
residents of the
and
'.
ot
county of
.State of
'.
, who, being severally
sworn, declare, each for himself, that they were acquainted with the said, decedent,
and know that he is deceased; that they know the claimant to be the identical person
262
REPORT ON THE FINANCES.
named iri the foregoing application and related to said decedent as above stated, and
further, that they have no interest directly or indirectly in this claim.
(Signature.)
(Address.)
(Signature.)
Subscribed and sworn to before me this
: [OFFICIAL SEAL]
My commission expires ..•••
day of
(Address.)
, 19..
.,
,19..
iV^otan/ Puhlk.
This affidavit must be sworn to before a notary public, or other officer authorized by law to administer
oaths, and unless authenticated by the official impression seal of the officer should be accompanied bv a
certificate from the proper official, showing that the officer was in commission onthe date of the acknowiedgmoiit.
INSTRUCTIONS.
1. This blank must be used only when there is no administration of the estate in
any court, and claims of all preferred creditors have been paid.
2. Pursuant to section XII of Treasury Department Circular No. 149, Revised,
dated August 1, 1922, in all cases where the gross personal estate of the deceased
owner exceeds $500 in value, administration will be required before payment or
reissue of a Treasury Savings Certificate will be made unlessdt appears to the satisfaction of the Secretary of the Treasury that administration of the estate of such
decedent is not required in the State of the decedent's domicile. If the gross personal
estate of the deceased owner exceeds $500 in value and it is claimed that administration
of the estate is not required in the State of the decedent's domicile, this application
must be accompanied b}^ an agreement by all the legal hebs of the decedent who are
. of lawful age and competent and by the legally appointed guardians or conservators
of any minor or incompetent heirs, duly acknowledged under oath before a notary
public or other officer authorized by law to administer oaths, showing that such persons
constitute all the legal heirs of the estate of the decedent or their, legally appointed
representatives; that all debts owing by the decedent have been paid; that administration of the estate of the decedent is not required in the State of the decedent's"
domirile, and that all such heirs or their legal representatives have agreed on the
distribution of the estate and consent to payment or reissue of the Treasury Savings
Certificates being made to the claimant who executes this application. Such agreement must also be accompanied by the affidavits of two disinterested persons, preferably public officers of the United States or executive officers of incorporated banks or
trust companies, showing that the affiants are responsible persons known to them,
whose statements are worthy of the confidence of the "Treasury Department. The
Secretary of the Treasury may further require in special cases an affidavit or certificate
from a practicing "attorney or judicial ofiicer of the State of the decedent's domicile
showing that administration of the estate of the decedent is not required in such
State, and referring specifically to any statutes or any judicial decisions of the courts
of such State under which exemption from administration is claimed.
3. The application should state whether the decedent left surviving a widow or
widower, child or children, or child or children of a deceased child; whetlier a guardian
or guardians have been appointed in case any of such children are minors; and whether
decedent left survi vin,? a father or mother, or both, giving all names and addresses.
4. The application should state whether funeral expenses and physician's services
during last illness have been paid; if so, by whom, and whether from personal funds
or funds belonging to the estate. Receipted bills of undertaker and doctor should
be attached and must agree with the affidavit in all cases. If such expenses .have not
been paid, the fact should be clearly stated.
5. If no official death certificate is attached, the affidavit of two disinterested persons
having personal knowledge of decedent's death as printed on page 3 must be furnished.
6. If two or more persons are equally entitled to payment or reissue as next of kin
iinder the regulations, the application should be executed by such claimants jointly, or
should be accompanied by a waiver of all right, title, and interest in the-Treasury
Savings Certificates payment or reissue of which is requested, executed by such
persons as do not join in the application.
7. Any additional facts must be stated, a knowledge of which is necessary in order
that payment of the amount due the estate of the deceased owner may be made in
accordance with the regulations of the Secretary of the Treasury (Treasury Department
(Circular No. 149, Revised, dated August 1, 1922, and any subsequent regulations in
force).
8. THE TREASURY SAVINGS CERTIFICATES MUST BE FORWARDED
WITH THIS APPLICATION.
263
SECRETARY OF T H E TREASURY.
TREASURY DEPARTMENT
DIVISION OF LOANS AND CURRENCY
Form L & C 277
Ed. 5,000—Aug. 1-22
APPLICATION BY P A R E N T OR P E R S O N WITH WHOM INFANT R E S I D E S FOR P A Y M E N T
OF TREASURY SAVINGS CERTIFICATES REGISTERED IN NAME OF INFANT.
STATE OF
•COUNTY OF
., being duly sworn, deposes and says:
I am t h e .
.of.
(Father, mother, or person with whom infant resides.)
who is an infant,
years of age, and resides at
(Number.)
, with
(Town or city.)
; that said
(State.)
infant owns the following-described Treasury Savings Certificates,
lierewith:
SERIES.
DENOMI- ,
NATION.
(Street.)
SERIAL
NUMBER.
transmitted
NAME AND ADDRESS OF REGISTERED OWNER AS
THEY APPEAR ON THE CEUTIFICATE.
.
Said infant is not of sufficient competency and.understanding to sign his name to
t h e demand for payment printed on said certificates arid to understand the nature
thereof, and by reason of that fact I hereby make demand for payment of said certificates to me on behalf of said infant. Said infant does not hold Treasury (War)
Savings Certificates of any one series to an aggregate amount exceeding $5,000,
maturity value. No guardian of the property of said infant has been appointed b y
:any court or otherwise.
(Infant's name.)
Witness
^
(A witness is not required unless applicant signs by X mark.)
A.ddress.
(Signature or X haark of applicant).
Address.
(Nurnber.)
(Town or city.)
Subscribed and sworn to before me this
day of
(Street.)
(State.)
, 19
[OFFICIAL SEAL.)
Notary Public.
My commission expires
-..., 192
^
This apphcation must be sworn to before a notary public, or other officer authorized by law to administer
•oaths, and unless .authenticated.'by thC'^Pfficial impression seal of the officer should be accompanied by a
^certificate from t ^ proper official, showing that tho officer was in commission on the date of the acknowl«€dgment.
264
REPORT ON T H E
FINANCES.
It must further be acknowledged on the following form by the applicant 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.
Personally appeared before me
, known or proved
(Name of payee.)
to me to be
,
of the original infant owner whose name
(State connection with original owner.)
is inscribed on the Avithin-described certificates, and acknowledged the within
demand to be his free act and deed.
I hereby certify that in my opinion said
is not of
(Name of infant.)
sufficient competency and understanding to sign his name to the demand for payment and to comprehend the nature thereof.
Witness my hand and official designation:
(Signature of attesting officer.)
[SEAL OR STAMP.]
(Official designation.
Dated at.
, 192...
The Treasury Sstvings Certificates must be forwarded with this application.
TREASURY DEPARTMENT
DIVISION OF LOANS AND CURRENCY
FormL&C279
Ed. 35,000—Aug. 1-22
APPLICATION
OF E X E C U T O R OR ADMINISTRATOR FOR P A Y M E N T OR R E I S S U E OF
TREASURY SAVINGS CERTIFICATES.
I am the(^^®^^^°/.^^- ^,lof the estate of
, who died
ladministrator/.
(Name of deceased.)
at
on the
day of
,19 , leaving the following(Place of death;)
described Treasury Savings Certificates, transmitted herewith:
SERIES.
DENOMINATION.
SERIAL NUMBER.
NAME AND ADDRESS OF REGISTERED OWNER AS
THEY APPEAR ON THE CERTIFICATE.
-'
Attached hereto is a court certificate showing my appointment and qualification as
teSUjof-restate.
(If the appointment of the executor or administrator is dated more than one year prior to the receipt of
this apphcation in the Department, the certificate must.be dated not more than three.months prior to.
such receipt, and must show that the appointment is stiU in full force and effect and has not been revoked.)
The decedent's estate does not hold Treasury (War) Savirigs Certificates of any one
series, of whatever issue or denomination, to an aggregate amount exceeding $5,000^
maturity value.
I hereby demand payment of the above-described Treasury pavings Certificates.
Or— (Strike out method not desired.)
I hereby demand reissue of the above-described Treasury. Savings Certificates to
. .^
, residing at
,
-,.
(Name in which to be reissued.)
(Number and street.)
(Town or city.)
SECRETARY OF THE TREASURY.
.'
265
1
'
, who will not after such reissuance hold Treasury (War) Savings
(State.)
Certificates of any one series to an aggregate amount exceeding $5,000, maturity value.
(Date.)
(Signature of applicant.)
No. and street
Town or city
State.
Personally appeared before me
, known or proved
(Name of apphcant.)
to me to be the]^^?!^-^J^-^L + [of the estate of the original owner whose name is^
inscribed on the within-described certificates, and signed the mthin demand, acknowledging it to be his free act and deed.
Witness my hand and official designation:
(Signature of attesting officer.)
[SEAL OR
STAMP]
(Official designation.)
Dated at
,19..
The within application and demand must be properly signed by the applicant 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 thepurpose.
The Treasury savings certificates must be forwarded with this application.
EXHIBIT
70.
[Department Circular No. 302. Public Debt.]
SURBENDER OF TBEASUBY SAVINGS CEBTIFICATES, NEW ISSUE,.
TBEASUBY SAVINGS STAMPS AND TBEASUBY SAVINGS CABDSHELD BY AUTHOBIZED AGENTS.
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,
Washington, September 30, 1922.
To Agents for the Sale of Treasury Savings Certificates, New Issue,.
Federal Reserve Banlcs, and Others Concerned:
1. General provisions.—Pursuant to the provisions of Treasury
Department Circular No. 301, dated September 30, 1922, the sale of
United States Treasury Savings Certificates, New Issue, offered under
the provisions of Treasury Departmjent Circular No. 270, dated December 1.5, 1921, and the sale of United States Treasury Savings Stamps
and the distribution of United States Treasury Savings Cards will
cease at the close of business on September 30, 1922. The Treasury
Savings Certificates thus withdrawn from sale are hereinafter called
Treasury Savings Certificates, New Issue.
2. Collateral Agents.—-'EiY&rj collateral agent is required to surrender, on or before October 31, 1922, to the Federal Reserve Bank
from which such certificates and stamps were obtained, all Treasury
Savings Certificates^ New Issue, and Treasury ^Savings Stamps not
sold before the close of business September 30, 1922, and upon such
surrender shall receive appropriate credit for the certificates and
stamps surrendered in its account with the Federal Reserve Bank.
Every collateral agent will also surrender, to the Federal Reserve
266
REPORT ON THE FINANCES.
Bank from which such cards were obtained, all Treasury Savings
Cards remaining in its hands unissued at the close of busmess September 30, 1922.
3. Post Offices'.—Post oflices will be required to surrender all Treasury Savings Certificates, New Issue, and Treasury Savings Stamps
held by them for sale and remaining in their hands unsold at the close
of business on September 30, 1922, and all Treasury Savings Cards
remaining in their hands unissued at the close of business on such
date, in accordance with instructions issued by the Postmaster General. No post office shall accept the surrender of any unsold Treasury
Savings Certificates, New Issue, or Treasury Savings Stamps from any
agent for the sale thereof other than a postal agent; but nothing
herein contained shall be deemed to prevent the redemption by post
offices, as hereinafter provided, of Treasury Savings Stamps at the
face value thereof.
4. Federal Reserve Banlcs.—On or before October 31, 1922, Federal
Reserve Banks will forward to the Register of the Treasury, Washington, D . C , all Treasury Savings Certificates, New Issue, and Treasury
Savings Stamps remaining in their hands unsold at the close of business September 30, 1922. Federal Reserve Banks will forward to the
Register of the Treasury, Washington, D. C , on or before November
30, 1922, all Treasury vSavings Certificates, New Issue, and Treasury
Savings.Stamps surrendered to them by collateral agents pursuant to
paragraph 2 hereof. Federal Reserve Banks wifl receive special
instructions as to the disposition of Treasury Savings Cards remaining
in their hands unissued at the close of business September 30, 1922,
•or surrendered to thenf by coUateral agents pursuant to paragraph 2
hereof.
5. Redemption of Treasury Savings Stamps.—On and after October
1, 1922, Treasury Savings Stamps then outstanding wiU be accepted
at their face v^lue of $1 per stamp on account of the purchase price
of Treasury Savings Certificates, issued pursuant to Treasury Department Circular No. 301, dated September 30, 1922, in any denomination, or, at the option of the holder, may be redeemed at such face
value in cash upon presentation and surrender at the office of the
Treasurer of the United States, Washington, D. C , any Federal
Reserve Bank or any authorized post office.
6. 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 Treasury (War) Savings securities, of
whatever issue or denomination, issued in pursuance of the act of
September 24, 1917, as amended and supplemented.
A. W. MELLON,
Secretary of the Treasury.
ExEdtBIT 7 i .
CASH E X P 6 N D i f u S , i s OF THE GOVEBNiyiENT FOB THE FISCAL YEABS 1917 TO 1922, INCLUSIVE, AS PtJBLlSHEfi
IN DAILY TBEASUBY STATEMENTS, CLASSIFIED ACCOBDING TO DEPABTMENTS AND ESTABLISHMENTS.
[Because of legislation estabhshing revolving funds and providing for the reimbursement of appropriations, commented nr-on in tho Annual-Report of the Secretary ofthe Treasury
for the fiscal year 1919, p. 126 ff., 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 here "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 ihe general fund of the Treasury.)
Fiscal year 1917
(revised).
Fiscal year 191S.
Fiscal year 1919.
Fiscal year 1920.
Fiscal year 1921.
Fiscal year 1922.
c/2
a
Ordinary:
w
§18,982,565.17
S17,0S8, 112.87
S19,327,708. 72
SI5,092,373. 97
$17,090, 106. 24
S15,825,506.72
Legislative estabhshment ^
218, 690.36
210,056. 79
6,675, 517. 58
9,662,847. 53
17,467,352. 03
Executive proper i
1,280,484. 85
9,666: 571.70
8,780,796. 84
13,586,024.42
9,892,898. 09
20,766,400.14
6,169,316.41
state Department
'
•
>
294,414;389.72
488,636,833.10
322,315,627.43
227,277,657. 81
152,500, 426. 53
84,294,313. 65
Treasury Department
454,730,717.67
1,101,615,013.32
1,610,587,380.86
8,995,880, 266. IS
4,850,687, 186.88
War Department
358,158,361.12
17,888,828.58
17,206, 418. 03
17,8,14,398.18
15,717,022.36
12,964,628.18
10,506,401.25
Department of Justice
67,730,361.83
2 135,359,108.17
2,412,250. 05
50,049, 295.07
1,895,578. 21
4,173, 103. 28
Post Office Department
O
476,775, 193.84
650,373, 835.58
736,021,456. 43
239,632,756.63
2,002,310,785. 02
1,278,840, 486. 80
Navy Department
341,097, 166.11
357,814,893. 01
279, 244,660. 87
288,285, 627.61
244,556,893.96
216, 415,516. 48
Interior Department..142,695,844.10
119,837, 759. 41
65,546, 293.14
39,246, 454. 41
42,870, 188. 28
29,547,234.01
Department of Agriculture
;
21,688,014.86
30,828 761. 55
30,010, 737. 75
15,589,514. 30
12,833,803. 82
11,689,792.94
Department of Commerce
6,227,471.57
8,502;509. 55
12,942, 558. 75
3,852, 111,34
5,415! 358. 40
5,469,268. 09
Department of Labor
400,691,609. 68
Veterans' Bureau 3
H
87,205,732.12
130,723,268. 26
14,291,282.96
770,681,550.83
530,565,649.61
1,820,606,870.90
United States Shipping Board
Federal control of transportation systems and trans>
^.6 139,469,450. 82
2 730,711,669.98
120,263,996.17
358,795,274. 60 ^ 1,036,672,157.53
portation act, 1920
5 22,028,452.12
94,428,001. 01
302,621,848.92
^ 228,472,186. 61
44,929,168.38
War Finance Corporation
1 In the fiscal years 1921 and 1922 changes wore made in classification of expenditures between legislative establishment, executive proper, and other independent offices and commissions, wiiich account for most of the differences as compared with expenditures for other fiscal years. .
2 Owing to settlement between the Post Office Department and the Railroad Adniinistration on account of transportation during Federal control, Post Offico Department expenditures for June, 1921, include $65,575,832.03 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.
3 Payments on account of veterans' relief made prior to Aug. 11,1921, by the War Risk Insurance Bureau are included under Treasury Department, while similar payments made
prior to that date by the Federal Board for Vocational Education are incluaed under other independent offices and commissions. During the fiscal year 1922 allotments for veterans'
rehef have been made to the Treasury Department in the amount of $26,350,668.66, to the War Department in the amount of $4,866,383.40, and to the Navy Department in the amount
of $529,237.84, but expenditures under these' aUotments appear as expenditures of the respective departments and not of the Veterans' Bureau.
< Includes $288,399,222.46 payments on certificates of indebtedness of Director General of Railroads, due July 15, 1919.
\-^ .
6 Deduct excess of credits.
O:^
6 The railroad expenditures have been reduced by $268,636,606.26 up to June 30, 1922, on account of deposits by the Railroad Adniinistration, representing proceeds of sale of
equipment trust notes acquired under the Federal control act approved Mar. 21,1918, as amended, and the act approved Nov. 19,1919, and have been further reduced by $123,783,487.75
up to June 30, 1922, on account of deposits of the proceeds of sale or collection of other securities acquired under the Federal control act or transportation act, 1920.
7 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, p. 2,
to
daily Treasury statement for June 30, 1920.)
Cash expenditures of the Government for the fiscal years 1917 to 1922, inclusive, as published i n daily Treasury statements, classified according to
departnients and establishments—Continued.
GO
[Because of legislation estabhshing revolving funds and providing for the reimbursement of appropriations, commented uponin the Annual Report of the Secretary of the Treasury
for the fiscal year 1919, p . 126 ff., 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 here stated. This statement does not include expenditures on account of the Postal Service other than salaries and expensesof the Post Office Department in Washington, postal deficiencies, and items appropriated by Congress payable from the general fund of the Treasury.]
^ '
Fiscal year 1917
(revised).
0 r dinary—Continued.
G r a i n Corporation
Sugar E q u a h z a t i o n B o a r d
Food a n d Fuel A d m i n i s t r a t i o n s
O t h e r i n d e p e n d e n t offices a n d commissions i
District of C o l u m b i a
I n t e r e s t on p u b h c d e b t
'
:
$7,558,829.88
13,681,595.39
24,742,701.68
Fiscal year 1918.
Fiscal y e a r 1919.
Fiscal y e a r 1920.
Fiscal y e a r 1921.
8 $350,328,494.70
9 $90,353,411. 42
$54,859,896.40
12,714,740.06
14,446,832.46
189,743,277.14
$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
119,942,516.73
22,715,158.60
999,144,731.35
Fiscal y e a r 1922.
10 $32,000,000.00
5 15,279,636.52
43>871,656.40
23,962,52L25
991,000,759.24
Total
D e d u c t unclassified r e p a y m e n t s , e t c
1,038,868,650.77
11150,275. 43
7,847,916,704.60
1126,469,620.31
14,934,953,678. 78
11 895,060. 84
5,945,397,399. 94
4,399,847.00
5,009,710,854.74
922,593.14
3,368,632,555.57
11 232,088. 59
Total
P a n a m a Canal
P a y m e n t for W e s t I n d i a n islands
P u r c h a s e of obhgations 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 b o n d s
Subscription t o stock. F e d e r a l l a n d b a n k s
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
3,368,864,644.16
3,025,421.32
421,337,028.09
29,643,546.17
73,896,697.44
16,781,320.79
717,834.36
6,403,343,841.21
5,115,927,689.30
3,372,607,899.84
Total ordinary
1,977,681,750.52
H
•2{
12,696,702,471.14
18,514,879,955.03
w
261,100,250.00
276,046,000.00
72,669,900.00
3,141,050.00
73,939,300. 00
26,348,950.00
64,837,900. 00
21,084,850. 00
2,922,4.50.00
60,724,500.00
60,333,000.00
12,950.00
168,500.00
392, 850. 00
8,014,750. 00
78,746,350.00
422,281,500.00
422,694,600.00
18,522,894,705. 03
6,482,090,191.21
5,538,209,189.30
3,795,302,499. 84
7,921,700.00
93,050. 00
1,134,234. 48
T o t a l p u b h c d e b t e x p e n d i t u r e s chargeable
against o r d i n a r y receipts -.
3,479,255,265.56
86,580,427. 48
O'
a
Public debt:
P u b h c d e b t e x p e n d i t u r e s chargeable against ordinary receiptsSinking 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 ments
.'
R e d e m p t i o n of b o n d s a n d notes 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
R e t i r e m e n t s from gifts, forfeitures, a n d other
miscellaneous r e c e i p t s . :
T o t a l e x p e n d i t u r e s ( p u b h c d e b t a n d ordin a r y ) chargeable against o r d i n a r y r e c e i p t s .
4,738,029,750.00
65,018,298.93
8,880,315.00
o
1,134,234. 48
1,977,681,750.52
12,697,836,705.62
other pubhc debt expenditures
Total pubhc debt (see items below)
677,544,782.25
7,213;555,218.S1
16,318,491,810.41
16,959,293,373.62
8,759,745,670.69
6,608,531, .896.9a
677,544,782.25
7,214,689,453.29
16,326,506,560.41
17,038,039,723. 62
9,182,027,170.69
7,031,226,496. 93
632,572,268.00
7,086,312,732.00
2,727,345.96
20,650.33
15,538, 78,900.00
131,519,529.91
63,029,583.00
15,589,117,458.53
200,982,934.62
509,165. 97
!, 552,225,500. 00
160,256,308.19
152,361.50
4,775,864,950.00
' 86,120,704. 53
58,122. 40
4,390,000.00
27,362,000. 00
656,000.00
61,050,000.00
14,935,500.00
19,150,000.00
4,003,050.00
180,351,000.00
201,655,700.00
165,000,000.00
32,336,700. 00
241,144,200. 00
296,300,800.00
405,222,800. 00
249,001,500.00
202,650. 00
8,703,400.00
51,172,350.00
39,414,450.00
332,439,450.00
413,600:00
6,015,150.00
137,788,400.00
9,574,450.00
1,908,139,250.00
40,564,115.50
21,625,225. 00
23,718,797.50
23,424,164. 50
37,460,701.00
107,251,870.00
677,544,782.25
7,214,689,453. 29
16,326,506,560. 41
17,038,039,723.62
9,182,027,170.69
7,031,226,496.93
RECAPITULATION, PUBLIC D E B T .
Certificates of indebtedness redeemed
Treasury (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 retired
:
Total pubhc debt.
is,'398.'75'
I In the fiscal years 1921 and 1922 changes were made in classification of expenditures between legislative establishment, executive proper, and other independent offices
and commissions, which account for most of the differences as compared with expenditures for other fiscal years.
6 Deduct excess of credits.
8 Includes $350,000,000 apphed by United States Grain Corporation to reduction of capital stock and reflected in "Miscehaneous receipts for fiscal year 1920.'^ (See note 1, p. 2,
daily Treasury statement for June 30, 1920.)
9 Net expenditure after taking into account credits and $100,000,000 applied to reduction in capital stock of United States Grain Corporation.
10 $25,000,000 of this amount represents reduction in capital stock of United States Grain Corporation effected Oct. 17, 1921, and is refiected in an increase of receipts in an equal
amount. (See note, p. 2, daily Treasury statement for Oct. 18, 1921.)
II Add.
W
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to
CO
EXHIBIT
72.
OBDINABY BECEIPTS AND EXPENDITUBES CHABGEABLE AGAINST OBDINABY BECEIPTS FBOM APBIL 6, 1917,
TO OCTOBEB 3 1 , 1922, ON THE BASIS OF DAILY TBEASUBY STATEMENTS.
O
RECEIPTS.
Customs.
A p r i l 6, 1917, t o J u n e 30, 1917.
Fiscal year 1918
Fiscal year 1919
F i s c a l year 1920
J u l y , 1920
Augu.st, 1920
S e p t e m b e r , 1920
October. 1920
N o v e m b e r , 1920
D e c e m b e r , 1920
J a n u a r v , 1921
F e b r u a r y , 1921
March, 1921
A p r i l , 1921
May.1921
Jurie. 1921
T o t a l for fiscal y e a r 1921.
July,1921
A u g u s t , 1921
S e p t e m b e r , 1921
October. 1921
N o v e m b e r , 1921
D e c e m b e r , 1921
J a n u a r y , 1922
F e b r u a r y , 1922
March, 1922
:
April. 1 9 2 2 . . . . : . . . . . . . . . . . : . . . .
M a y , 1922
:...:...:
:..
J u n e , 1922.
T o t a l for fiscal y e a r 1922:.
J u l y , 1922
August, 1922..:::
S e p t e m b e r , 1922.,
Qctober, 1 9 2 2 . . . .
T o t a l J u l y 1 t o Oct. 31,1922..
Grand total
$65,210,500.96
179,998,3&3. 49
184,457,867.39
322,902,650.39
30,694, 297.30
29,327, 518.83
24,036,208. 77
25,599, 595. 60
21,884, 850. 58
18,554, 794.65
17,485, 532. 78
21,152, 665. 92
29,203, 977.43
40,417, 183.94
25,485, 133.15
24,722, 632.05
308,564,391.00
19,796,290. 37
26,449,062.28
23,356,692.08
26,408,043.05
24,843,122.17
26,155,151.35
27,251,033.11
33,651,742.85
40,288,428.44
33,803,780.52
35,578,214.90
38,861,826.06
356,443,387.18
37,491,590. 74
39,012,098.99
53,135,385. 46
40,135,835.81
169,774,911.00
1,687,352,091.41
Income and
profits t a x .
$326,906,757. 77
2,314,006,291.84
•3,018,783,687.29
3,944,949,287.75
64,917 691.90
59,55i; 871.46
716,183, 757. 45
55,685, 825. 49
61,193, 604. 70
670,671, 179.54
54,223, 322. 41
70,511, 047. 03
727,543, 549.04
108,380, 928. 20
52,262, 908. 39
564,920, 472.13
3,206,046,157.74
47,156, 908. 02
47,439, 706. 64
537,492, 412. 86
47,986, 607. 45
35,366, 755.18
523,973, 741.40
4-5,628,859. 72
33,206, 712.41
393,382, 045.17
33,363, 133.13
27,603, 368. 96
295,527, 941. 74
2,068,128,192. 68
32,108,600.98
23,817,137.63
286,535,255.48
26,721,825.01
369,182,819.10
15,248,003,194.17
Miscellaneous
internal revenue.
Miscellaneous
revenue, including
P a n a m a Canal.
$142,391,206. 47
872,028,020.27
1,296,501,291.67
1,460.082,2R6.9J
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
94,81.2; 476. 67
115,617, 135. 85
$32,930,24L89
298,550,169.10
652,514,290.08
966,631,163.83
27,083, 6;18. 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
44,756. 912. 09
1,390,379,823.28
110,994 768. 44
136,7S0; 512. 99
116,626, 662.53
112,873. 295. 45
104.737, 183.52
106;733, 179.66
85,429, 053.20
81,503, 576.99
83,671, 799. 87
64,963, 637.15
61,394,647.60
79,416, 746. 71
19,942,-588.89
31,120, 487.96
31,773, 904. 92
11,852, 492. 61
50,579, 565.39
30,535, 782.07
83,430, 728.98
32,691, 806.92
27,289, 412.43
33,415, 409.71
65,789, 089.94
81,799, 529.20
59.129, 296. 84
,145,125,064.11
82,477.701.80
114,984.312.55
81,283,050. 14
79,717,916.77
358,463,071.26
539,407,506.97
6,664,970,703.97
52,898,535. 05
38,964,030.30
33,854,990.45
154,663,838.18
280,381,393.98
3,490,357,354.74
Total.
$567,438,707.09
3,664,582.864.70
5,152,2.57,136.43
6,694, 565,388.88
230,366, 525.45
398,400. 605.68
911.307, 071.81
220,034, 804 97
27.5,420,812. 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
5,624,932,960.91
209,068, 454.79
242,443, 186. 83
689. .328,260.08
237,847, 511.34
195,482, 842.94
740,292, 801.39
191,000, 7.-^2.95
175,651 444.68
550,757; 6&3.19
197,919,640. 74
206,375, 760.66
472,935, 811.35
4.109.104,150.94 •
204,976,518.57
216,777,579.47
454,808.681. -53
301,239,415.77
1,177,802,195.34
26,990,683,404.29
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O
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EXPENDITURES.
April 6, 1917, to J u n e 30, 1917
Fiscal vear 1918
Fiscal year 1919
Fiscal vear 1920
'.
J u l y , 1920
A u g u s t , 1920
1
S e p t e m b e r , 1920
Octoher, 1920..
N o v e m b e r , 1920
D e c e m b e r , 1920
Ja.nnar3^ 1921
F e b r u a r y , 1921 . .
March; 1921
April, 1921. . .
M a v , 1921
J u u e , 1921
-
T o t a l for fiscal year 1921
J u l y , 1921
A u g u s t , 1921...
.
S e p t e m b e r , 1921
October, 1921..
. .
N o v e m ber, 1921
D e c e m b e r , 1921
.
J a n u a r y , 1922
.February, 1922
March, 1922
A p r i l . 1922
May,'l922
J u n e , ] 922
Total for fiscal year 1 9 2 2 . . . ;
J u l y , 1922
A u g u s t , 1922
September. 1922...
. . . .
October, 1922
T o t a l J u l y 1 to Oct. 31, 1922
G rand total
^ Net.
.-.
;...:
• .
;
. ... .
.
..
"
.
:
.
.'
....
.
'
..."
..•
.
O r d i n a r y , exclusive of p u r c h a s e
of obligations of
foreign governments.
P u r c h a s e of obl i g a t i o n s of
foreign governments.
P u b l i c d e b t retirements chargeable against ord i n a r y receipts.
Total expendit u r e s chargeable
against o r d i n a r y
receipts.
$330,886,628.55
7,958,672,721.14
15,035,624,689.47
6,982,006,813.12
$885,000,000.00
4,738,029,750.00
3,479,25.5,26.5.-56
421,337,028.09
$1,134,234.48
8,014,750.00
78,746,350.00
$1,21.5,886,628.55
12,697,836,705.62
18,522,894,705.03
6,482,090,191.21
295,501,8.39.31
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
11,000,000.00
30,469,467.89
15,732,165.64
5,042,030,991.86
321,818,569.24
291,157,847.34
266,523,932.79
304,1.57,955.85
324,483,376.72
329,765,750.86
231,246,89.5.16.
182,205,931.85
325,954,936.78
242,560,961.82
2.37,961,476.88
314,052,430.19
3,371,890,065.48
218,696,870.97
218,025,762.25
304,132,012.53
411,109,750.05
73,896,697.44
1,151,964,395.80
38,873,076,305.42
16,695,063.91
717,834.36
717,834.36
9,598,236,575.45
7,667,100.00
2,453,200.00
37,161,9.50.00
5,318,700.00
12,894,650.00
3,744,600.00
85,435,050.00
55,376,350.00
52,012,650.00
36,315,100.00
49,844,500.00
74,057.650.00
422,281,500.00
60,398,650.00
25,298,550.00
1,888,900.00
59,311, .550.00
39,,389,300:00
72,864,750.00
36,323,600.00
5,185,050.00
26,062,400.00
35,386,850.00
23,602,350.00
36,982.650.00
422,694,600.00
6,800,850.00
3,529,750.00
42.979,550.00
54,787,500.00
108,097,650.00
1,040,969,084.48
314,168,939.31
450,024,262.45
533,938,604:89
431,816,072.37
4.38,986,963.00
408,319,691.03
473,614,322.33
406,478,380.45
588,489,010.91
530,406,289.49
418,295,045.01
543,671,608.06
5,538,209,189.30
382,217,219.24
316,456,397.34
268,412,832.79
363,469,505.85
363,872,676.72
402,630,500.86
267,570,495.16
187,390,981.85
352,017,336.78
277,947,811:82
261,563,826.88
351,7.52,914.55
3,796,302,499.84
225,497,720.97
221,5.55,512.25
347,111,662.53
466,897,250.05
1,260,062,045.80
49,612,281,965.35
Excess of receipts
(-f), excess of
expenditures
(-).
-$648,447,921.46
-9,033,253,840.92
-13,370,637,568.60
-f212,475,197.67
-83,802,413.86
-51,623,596.77
-f 377, .368,466.92
-211,781,267.40
-163,566,150.75
-1-523,669,706.29
-256,286,073.23
-157,914,765.67
-f333,138,591.81
-2.34,235,623.67
-194,58.8,646.12
-f206,345,544.06
-f-86,723,771.61
-173,148,764.45
-74,013,210.51
-1-420,915,427.29
-125,621,994.51
-168,389,833.78
-f-337,662,300.53
-76,5^9,742.21
-11,7.39, .537.17
-1-198,740,346.41
-80,028,171.08
-55,188,066.22
-H121,182,896.80
1 +313,801,651.10
- 2 0 , .521,202.40
-4,777,932.78
+ 107,697,119.00
-164,657,834.28
-82,259,850.46
-22,621,598,561.06
o-
"^
H
o
>
Ul
to
272
REPORT ON T H E PINANCES.
EXHIBIT
73.
P A Y M E N T S TO C A B B I E B S F B O M N O V E M B E B 1 6 , 1 9 2 1 , TO N O V E M B E B 15, 1922, INCLUSIVE, P B O V I D E D F O B IN SECTION 204 OF THE
T B AN S P O B T A T I O N ACT O F 1 9 2 0 , A S A M E N D E D , F O B T H E B E I M B U B S E M E N T O F D E F I C I T S ON A C C O U N T O F F E D E B A L C O N T B O L .
Carrier.
Partial.
Apalachicola N o r t h e r n R . R . Co
Arizona & Swansea R . R . Co
B r i d g t o n & Saco R i v e r R . R . Co
B r i s t o l R . R . Co
BlytheviUe, LeachviUe & A r k a n s a s S o u t h e r n R .
R.Co
Bullfrog Goldfield R . R . Co
B u t l e r County R . R . Co:
•Cazenovia S o u t h e r n R . R . Co
C h e s a p e a k e Western R y
Chicago T u n n e l Co
•.
Chicago W a r e h o u s e & T e r m i n a l Co
,
Colorado Springs & Cripple Creek District R y . Co.,
receiver
:
:
Elwood, Anderson & LapeUe R . R . Co
E m m i t s b u r g R . R . Co
F e r n w o o d , Columbia & Gulf R . R . Co
:.
F u l t o n Chain R a i l w a y Co
Georgia Coast & P i e d m o n t K.. R . C o . .
:
Glenmora & Western R y . C o
Ilhnois N o r t h e r n R y
.,
I n t e r m o u n t a i n R y . Co
Jefferson & N o r t h w e s t e r n R y . Co
K e n t w o o d & E a s t e r n R y . Co
K e n t w o o d , G r e e n b u r g & S o u t h w e s t e r n R . R . Co..
K n o x v i l l e , Sevierville & E a s t e r n R y . Co., receiver..
L a Salle & B u r e a u C o u n t y R . R . Co
L a w n d a l e R y . & I n d u s t r i a l Co
Leetonia R y . Co
\
L i t t l e Rock, M a u m e h e & W e s t e r n R . R . Co.,
receiver
L i m e .Rock R . R . Co
.'
Lufkin, H e m p h i h & Gulf R y . C o . . . :
;..
Madison S o u t h e r n R y . Co.
Manchester & O n e i d a R y . CJo
•
Mansfield R y . & T r a n s p o r t a t i o n Co
Millers Creek R . R . Co
Milltown Air L i n e R y
Moscow, C a m d e n & S a n A u g u s t i n e R . R . Co
Nacogdoches & S o u t h e a s t e r n R . R . Co
N e a m e , Carson & S o u t h e r n R . R . Co.
Nevada-Cahfornia-Oregon R y
",
N e w Castle & Ohio R i v e r R y . Co
N o r t h a m p t o n & B a t h R . R . Co
Ocean Shore R . R . Co
Okmulgee N o r t h e r n R y . Co
O wasco R i v e r R y
P a r i s &. M o u n t P l e a s a n t R . R . Co., receiver
Raquette Lake Ry
S a h n a N o r t h e r n R . R . Co., receiver
S a n d y R i v e r & Rangeley L a k e s R . R . ' C o
S a n J o a q u i n & E a s t e r n R . R . Co
i
Silverton N o r t h e r n R . R . Co
S o u t h Buffalo R y . Co
S o u t h San Francisco Belt R y
Spokane & B r i t i s h Coliimbia R y . Co
StatenviUe R y . Co
S u s q u e h a n n a & N e w Y o r k R . R . Co
S t . J o h n & Opliir R . R . C o . . :
U n i t e d V e r d e & Pacific R y . Co
U r s i n a & N o r t h F o r k R y . Co
V e n t u r a County R y . Co
:
W a b a s h , Chester & W e s t e r n R . R . Co
W a t e r v i l l e R y . Co
W y a n d o t t e S o u t h e r n R . R . C o . .•
Total
,
Less refund of o v e r p a y m e n t s —
F r a n k h n & P i t t s y l v a n i a R . R : C o . . $1,223.18
Montana Western R y . Co....'.
2,233.90
Georgia, F l o r i d a & A l a b a m a l i y . Co. 7,047.71
FiaaX.
Deductions.!
$3,763.97
15,296.34
15,359.93
729.31
29.892.09
15,144.79
18,078.37
7,187. .52
11,040.05
22,747.33
64.246.10
284,321.42
15,693.35
2,998.07
46,478.60
3,881.06
23,126.96
lO; 917.04
202,509.43
20,739. 20
4,983.55
8,764.96
52,423.22
5,009.25
13,414.14
2,730.98
44,831.32
24,433.76
10,441.91
6, 517.07
5,953.106,327.14
14,802.09
50,237.97
14,959.72
7,168.23
18,498.53
39.188.86
50,015.76
1,128.29
121,911.41
63,322.30
15,684.26
21,740.17
1,748.47
9,7.17.82
3,840.26
52.585.11
53,741.34
20,845.16
196,175.57
29.590.87
14,289.87
7,178.03
20,271.48
17,977.70
34,533.15
3,094.98
17,4.56.32
37,939.95
9,671.53
10,388.98
$3,763.97
15,296.34
1.5,359.93
729.31
364.67
169.86
736.46
4,256.09
841. 08
2,651.85
4,779.44
440.00
'85.50
235.16
59.17
1,748.47
528.81
29,892.-09
1.5,144.79
18,078.37
7,187.52
11,040.05
22,747. 33
64,246.10
284,321.42
15,693.35
2,998.07
46,478.60
3,881.06
23.126.96
10,917.04
202,509.43
20,739.20
4,983.55
8,764.96
52,423.22
5.009.25
13,414.14
2,730.98
44,831.32
24,4.33.76
10,441.91
6,517. 07
5,953.10
6,327:14
14,802.09
50.237.97
14,959.72
• 7,168.23
18,498.53
39,188.86'
50,015.76
1,128.29
121,911.41
63,322.30
15,684.26
21,740.17
1,748.47
9,717.82
3.840.26
52,585.11
53,74L34
20,845.16
196,175.57 .
29,590.87
14,289.87
7,178.03
20,271.48
17,977.70
34,533.15
3,094.98
17,456.32
37,939.95
9,671.53
10,388.98
1,959,685.51
1,959,685.61
10,504.79
P a y m e n t s from N o v . 16,1921, t o N o v . 15,1922,
inclusive
•.
I
$2,177,651.41
P a y m e n t s t o N o v . 15,1921, inclusive
T o t a l p a y m e n t s t o N o v . 15,1922, i n c l u s i v e . . . 2,177,651.41
Total
certified.
10,504.79
1,949,180.72
1,012,718.32
20,594.28
952,001.66
1,949,180.72
3,190,369.73
2,961,899.04
972,595.94
6,139,550.45
1 A m o u n t d u e from 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 account of traffic balances or o t h e r i n d e b t e d n e s s .
273
SECRETARY OF THE TREASURY.
E X H I B I T 74.
-
PAYMENTS T O CABBIEBS FBOM NOVEMBEB 16, 1921, TO NOVEMB E B 16, 1922, I N C L U S I V E , UNDEB THE GUABANTY PBOVIDED
FOB IN SECTION 209 OF THE TB AN SPOBT ATION ACT OF 1920,
AS AMENDED.
Carrier.
Advances.
A l a b a m a Central R y
A l a b a m a & Mississippi R . R . Co., receiver.
A l t o n & S o u t h e r n R . R . Co
Apalachicola N o r t h e r n R . R . Co
Aransas Harbor Terminal R y
',Bennettsville & Cheraw R . R . Co
B l o o m s b u r g & Sullivan R . R . C o .
' B r i d g t o n & Saco R i v e r R . R . Co
B r o w n w o o d N o r t h & S o u t h R y . Co
Buffalo, Rochester & P i t t s b u r g h R y . C o .
BuUfrog Goldfield R . R . Co
Carolina & T e n n e s s e e S o u t h e r n R y . C o . .
•Central V e r m o n t R y . Co
•Central W e s t Virginia & S o u t h e r n R . R .
Co.
' C h a r l e s t o n T e r m i n a l Co
-Chesapeake W e s t e r n R y
-.Chicago & E a s t e r n Ihinois R . R . Co., reChicago J u n c t i o n R y . Co
'Chicago, IMilwaukee & St. P a u l R y . C o . . .
Chicago & N o r t h W e s t e r n R y . Co
Chicago, Peoria & St. Louis R . R . C o . . . .
"Chicago, R o c k I s l a n d & Pacific R y . C o . . .
"Chicago, St. P a u l , Minneapolis & O m a h a
'^ y .. C o .
R
Chicago T u n n e l Co
Chicago W a r e h o u s e & T e r m i n a l Co
'Colorado Springs & Cripple Creek District
R y . Co., receiver
D a n v i h e & W e s t e r n R y . Co
Deefing S o u t h w e s t e r n R y
D e n i s o n & Pacific S u b u r b a n R y . C o . . . . .
. D e n v e r & R i o G r a n d e R . R . Co., receiver..
. D e t r o i t , B a y City & W e s t e r n R . R . C o . . .
D e t r o i t & Mackinac R y . Co
- D u l u t h , S o u t h Shore & A t l a n t i c R y . C o . . .
g u r h a m & S o u t h e r n R . R . Co
E l P a s o & S o u t h w e s t e r n Co
T E m m i t s b u r g R . R . Co
.Fernwood, Columbia & Gulf R . R . C o . . . .
. F l i n t R i v e r & N o r t h e a s t e r n R . R . Co
F o r t S m i t h , Subiaco & R o c k I s l a n d R. R .
Co
F o r t W o r t h & R i o G r a n d e R y . Co
^Galveston Wharf Co
.'
•Georgia, F l o r i d a & A l a b a m a R y . Co
Georgia N o r t h e r n R y . Co
,..
Georgia S o u t h e r n & Florida R y . C o . . J..
-Gulf, Florida & A l a b a m a R y . Co., receiver .
Illinois Central R . R . Co. a n d its s u b sidiaries
. I n t e r n a t i o n a l & Great N o r t h e r n R y . Co.,
receiver
-Jefferson & N o r t h w e s t e r n R y . Co
K a n s a s City, Clinton & Springfield R y .
Co
K a n s a s City, Mexico & Orient R y . Co.
of T e x a s
K a n s a s City, Mexico & Orient R . R . Co.,
receiver
: L a k e E r i e & W e s t e r n R . R . Co
L a Salle & B u r e a u C o u n t y R . R . Co
L e h i g h & .Hudson R i v e r R y . Co
L i b e r t y - W h i t e R . R . Co., receiver
-Louisiana R a i l w a y & N a v i g a t i o n Co
L u f k i n , H e m p h i U & Gulf R y . Co
Manchester & Oneida R y . Co
Marion & S o u t h e r n R . R . Co
Middle Tennessee R . R . Co
M i d d l e t o w n & U n i o n v i l l e R . R . Co
M i n e r a l R a n g e R . R . Co
M i n n e a p o l i s & E a s t e r n R y . Co
Partial.
Final.i
$2,246. 20
16,543.61
14,802. 29
18,093. 95
6,319.94
2,961.03
2,995. 70
1,051. 27
222,364. 47
14,454. 88
4,4,34.82
40,148.63
$2,246. 20
16,543.61
100,000.00
14,802.29
18,093. 95
6, 319. 94
2,9€L03
2,995. 70
1,051.27
222,364. 47
14,454. 88
'4,434. 82
40,148.63
8, 574. 89
10,351. 89
6,804.15
8,574. 89
10,351. 89
6,804.15
$100,000.00
55,000. 00
1,000,000. 00
500,000.00
723,982. .56
315,319. 54
676,636. 00
!, 733, 520. 55
78, 372. 69
723,982. 56
315,319. 54
676,636.00
3,733,520. 55
133,372.69
1,000,000.00
368,096. 82
16,812.53
46,808.40
368,096. 82
16,812.53
46,806.40
170,921.69,
37, .548.74
3,623. 67
340.86
477,953. 32
1.3,313. 36
61,678.28
178,459. 94
70,166.99
691,408. 32
2,497.62
12> 480.05
1,238. 91
170,921.69
37,548.74
3,623.67
340. 86
477,953. 32
13,313. 36
61,678.28
178,459. 94
, 70,166.99
1,191,408. 32
2,497.62
12,480.05
1,238. 91
5,059.23
41,885.67
31,742.96
15,450.03
1,632. 37
366,737. 98
5,059.23
41,885.67
31,742. 96
15,450.03
1,632.37
366,737. 96
6,684.92
1, 313,078. 57
528,010.15
102.626. 94
Total.
6,684.92.
1,313,078.57
18,362. 49
528,010.15
18, 362. 49
31,228.29
31,228. 29
84,715.19
84,715.19
32,904.17
140,918.65
375.09
184,750. 94
8,104. 28
32,904.17
140,918. 65
375. 09
184.750.94
8,104. 28
102,626.94
10,851. 76
5,486. 80
2,923.72
20,864. 90
10,303.90
123.167.95
2,139. 63
10,851. 78
5,488. 80
2,923.72
20,864. 90
10,303. 90
123,167.95
2,139.63
1 A m o u n t s i n t h i s column r e p r e s e n t b a l a n c e s d u e a n d p a i d after t a k i n g i n t o a c c o u n t a d v a n c e s a n d p a r "tial p a y m e n t s previously m a d e .
14263—FI 1922-
-18
274
REPORT ON T H E PINANCES.
Payments to carriers from November 16,1921, to November 15, 1922, inclusive, under the
guaranty provided for in section 209 of the transportation act of 1920, as amended—
Continued.
Carrier.
Advances.
Minneapolis, St. Paul & Sault Ste. Marie
Ry.Co
Mississippi Central R .^ R. Co
Mississippi Eastern Ry. Co
Mobile & Ohio R. R. Co
Montana Western Ry. Co
New Orleans Great Northern R. R. Co..
New York, Ontario & Western Ry. Co..,
Oil Fields' Short Line R. R. Co
,
Owasco River Ry
,
Pacific Coast R. R. Co
,
Pacific Coast Ry. Co
Paris & Mount Pleasant R. R. Co., receiver
Peoria & Pekin Union Ry. Co
Philadelphia & Reading Ry. Co
Port Bolivar Iron Ore]Ely. Co
.-..
Port St. Joe Dock & Terminal Ry. Co....
Quanah, Acme & Pacific Ry. Co
Rapid City, Black HiUs & Western R. R.
Co
Raritan River R. R. Co
Rock Island Southern Ry. Co
Sahna Northern R . R . Co., receivers
San Antonio & Aransas Pass Ry. Co
Sandy River & Rangele^y Lakes R . R
Santa Maria Valley R. R. Co
0 Seaboard Air Line Rv. Co
Sioux City Terminal "Ry. Co
St. Louis-San Francisco Ry. Co
St. Louis, San Francisco & "Texas Ry. Co..
Stanley MerriU & Phillips Ry. Co
Susquehanna &. New York R. R. Co
Tennessee, Alabama & Georgia R . R . Co.,
receiver
Terminal Railroad Association of St.
Louis
Texas Midland R . R . . .
Texas & Pacific Ry. Co., receivers
Tonopah & Goldfield R. R. Co
Trans-Mississippi Terminal R. R. Co
Ulster & Delaware R. R.Co
Ursina & North Fork Ry. Co
Wabash Ry. Co
Washington & Choctaw Ry. Co
Watervihe Ry. Co
Western Allegheny R. R. Co
Woodstock Ry. Co
Partial.
$5,000.00
"'4,'666."00
8,000.00
'366," 656.'66
Payments to above carriers from Nov.
16,1921, to Nov. 15,1922, inclusive..
Payments to Nov. 15,1921, inclusive.. $263,935,874.00
263,935,874.00
Total.
$592,467.82
38,581. 46
4,494. 77
605,735. 86
4,019.21
131,055.93
96,010.33
11,588.35
5,200.42
2,342.79
21,558. 36
$592,467.82.
38,581.46
4,494.77
605,736.854,019.21
131,055.93.
96,010.33.
11,688.35'
6,105. 81
83,829.87
1,656,060.80
11,105.81
83,829.87
1,656,060.80.
4,000.00
1,410.22:
17,226.86'
1,410.22'
17,226. 86
8,685. 30
24,305.19
58,711. 84
14,086.24
81,354. 39
26,534.07
10,51.^ 7^
21,623. 22
855,449.76
114,967.63
32,482.71
29,950.61
6,200.42
2,342.7921,558.36-
8,685.30
24,305.19
58,711.84
22,086.24
81,364.3926,534.07
10,513.7&
300,000.00
21,623.22'
855,449.76
114,967.63
32,482.71
29,950.61
40,359.66
40,359.66-
278,960.75
298,041.77
16,683.34
21,950.23
69,450. 00
4,150.90
618,287.71
2,201.99
938.59
39,226.17
7,123.47
278,960.76
58,367.54
798,041.77
16,683.34
21,950.23
69,450.00
4,150.90618,287.71
2,20L99
938.69'
39,226.17
7,123.47
16,523,791.74
19,626,428.83-
4,389.00
4,389.00
68,367. 64
500,000. 00
Total.
LessRefund of overpayment by Paris &
Great Northern R. R. Co
:
Total payments to Nov. 15, 1922,
inclusive
Final.i
3,102,637. 09 16,519,402. 74 19,622,039.83
705,114.71 430,468,763.76:
165,827,775.05
168,930,412.14
17,224,517. 46 450,090,803.69'
1 Amounts in this column represent balances due and paid after taking into account advances and partial
payments previously made.
275
SECRETARY OF T H E TREASURY.
E X H I B I T 75.
L O A N S TO C A B B I E B S U N D E B SECTION 2 1 0 OF T H E T B A N S P O B T A TION
A C T O F 1920, AS AMENDED, AND B E P A Y M E N T S
ON
SUCH
L O A N S F B O M N O V E M B E B 16, 1 9 2 1 , TO N O V E M B E B 1 5 , 1 9 2 2 , I N CLUSIVE, WITH LOANS OUTSTANDING NOVEMBEB 15, 1921, AND
NOVEMBEB 15, 1922.
Carrier.
Akron, Canton & Youngstown Ry. Co
Alabama, Tennessee & Northern R. R.
Corp
Alabama & Vicksburg Ry. Co
Ann Arbor R. R. Co
Aransas Harbor Terminal Ry
Atlanta, Birmingham & Atlantic Ry.Co..
Baltimore & Ohio R. R. Co
Bangor & Aroostook R. R. Co.
Birmingham & Northwestern Ry. Co.
Boston & Maine R. R
Buffalo, Rochester & Pittsburgh Ry. Co..
Cambria & Indiana R. R. Co
,
Carohna, Chnchfield & Ohio Ry. Co
Central of (3 eorgia Ry. Co
Central New England Ry. Co
,
Central Vermont Ry. Co
Charles City Western Ry. Co
,
Chesapeake & Ohio Ry. Co
Chicago & Eastern Illinois R. R. Co.,
Receiver
,
Chicago Great Western R. R. Co
,
Chicago, Indianapolis & LouisviUe Ry. Co
Chicago, Milwaukee & St. Paul Ry. Co...
Chicago, Rock Island & Pacific Ry. Co...
Chicago & Western Indiana R. R. Co
Cisco & Northeastern Ry. Co
Cowlitz, Chehalis & Cascade Ry. Co
Cumberland & Manchester R. R. Co
Des Moines & Central Iowa R. R. (formerly the Inter-Urban Ry. Co.)
:
Erie R. R. Co
"Evansville, Indianapolis & Terre Haute
Ry. Co
:
Fernwood, Columbia & Gulf R. R. C o . . .
Flemingsburg & Northern R. R. Co
Fort Dodge, Des Moines & Southern R.
R. Co
Fort Smith & Western R. R. Co., Receiver
of the
GainesviUe & Northwestern R. R. Co
Georgia & Florida Ry., Receivers of
Great Northern Ry. Co
Greene County R. R. Co
Gulf, Mobile <fe Northern R. R. Co
Hocking Valley Ry. Co
lUinois Central R. R. Co
Indiana Harbor Belt R. R. Co
International & Great Northern Ry. Co.,
Receiver of
Kansas City, Mexico & Orient R. R. Co.,
Receiver of
Kansas City Terminal Ry. Co
Lake Erie, Frankhn & Clarion R. R. Co.
Long Island R. R. Co
LouisviUe & JeffersonviUe Bridge & R. R.
Co
Maine Central R. R. Co
Minneapohs & St. Louis R. R. Co
Missouri, Kansas & Texas Ry. Co. of
Texas, Receiver of
Missouri & North Arkansas Ry. Co
Missouri Pacific R. R. Co
:
National Railway Service Corporation:
Baltimore & Ohio R. R. Co
Bangor & Aroostook R . R . Co
Chicago, Rock Island & Pacific Ry. Co.
Minneapohs & St. Louis R. R. Cfo
New Orleans, Texas & Mexico R. R.
Co
Wheehng & Lake Erie Ry. Co
Loans outstanding Nov.
16,1921.
Loans made
from Nov. 16,
1921, to Nov.
15, 1922.
Repayments
from Nov. 16,
1921, to Nov.
15, 1922.
$399,000.00
$13,760.00
$212,000.00
$212,000.00
90,000.00
1,394,000.00
590,000.00
50,000.00
180,000.00
3,000,000.00
196,000.00
14,705,479.00
1,000,000.00
250,000.00
3,000,000.00
237,900.00
300,000.00
193,000.00
140,000.00
6,428,000.00
785,000.00
2,446,373.00
155,000.00
36,340,000.00
9,862,000.00
7,911,000.00
Loans outstanding;
Nov. 15,
1922. .
80,000.00
16,000.00
75,000.00
5,000,000.00
6,000,000.00
6,000,000.00
250,000.00
1,000,000.00
15,860.00
2,669,000.00
'1*623,'976." 63"
13,000.00
476,250.00
1,394,000.00
510,000.00
50,000.00
180,000.00
3,000,000.00
180,000.00
76,000.00
14,705,479.00
1,000,000.00
8,000,000.00
222,040.00
300,000.00
180,000.00
140,000. 00
8,073,023.97
376,000.00
785,000.00
2,445,373.-00
155,000.00
36,000,000.00
9,882,000.00
7,817,000.00
236,450.00
45,000.00
375,000.00
633,600.00
11^674,450.00
633,600.00
11,574,460^0
240,000.00
'25,'666'666.'66'
240,000.00
25,340,000.00
""94," 666." 66'
2.36,4.50.00
46,000.00
150,000.00
33,000.00
7,250.00
250,000.00
400,000.00
33,000.00
7,250.00
200,000.00
200,000.00
166,000.00
75,000.00
792,000.00
18,362,000.00
60,000.00
615,000.00
1,053,000.00
4,144,000.00
579,000.00
16,620,000.00
6,000.00
918,500.00
612,000.00
296,000.00
16.5,000.00
194,300.00
2,500,000.00
580,000.00
25,000.00
719,000.00
2,500,000.00
156,000.00
75,000.00
792,000.00
1,742,000.00
64,000.00
1,433, .500.00
1,665,000.00
3,84S, 000.00
414,000. 00
38,850.00
155,440.00
2,500,000:00
2,500,000.00
580,000.00
22,500.00
500,000.00
2.500.00
219,000.00
162,000.00
2,373,000.00
1,382,000.00
162,000.00
2,373,000.00
1,382,000.00
450,000.00
80,000.00
420,000.00
3,500,000.00
.5,629,760.00
6,026,666.67
63,100.00
1,668,540.00
386,190.00
520,000.00
5,310.00
7,497.96
1,846.08
4,508,666.67
47,790. 00
1,561,042.04
384,343.92
926,000.00
3,304,000.00
95,793.12
15,793.96
830,206.88
3,288^206.05
"5,'709,'760." 66'
30,000.00
3,500,000.00
276
REPORT ON T H E FINANCES.
Loans to carriers under section 210 of the transportation act of 1920, as amended, and
repayments on such loans from November 16, 1921, to November 15,1922, inclusive,
wxth loans outstanding November 15, 1921, and Noyember 15, 1922—Continued.
Loans made
Loans outNov. 16,
standing Nov. from
1921,
to Nov.
I
15, 1921.
15, 1922.
I
Carrier.
$234,000.00
New Orleans, Texas & Mexico R. R. Co..
26,775,000.00
New York Central R. R. Co
New York,-New Haven & Hartford R. R. 1
Co
j 16,530,000.00
261,000.00
Norfolk Southern R. R. Co
Northern Pacific Ry. Co
I 6,000,000.00
Pennsylvania R. R. Co
j 12,480,000.00
Peoria & Peldn Union Ry. Co.
! 1,799,000.00
61,000.00
Rutland R. R. Co
•
984,300.00
Salt Lake & Utah R. R. Co
j
Seaboard Air Line Ry. Co
| 8,558,900.00
Seaboard-Bay Line Co
'
29,000.00
Shearwood Ry. Co
I
100,000.00
Tampa Northern R. R. Co
j
Tennessee Central Ry. Co
'
Terminal R-..ilroad Association of St. j
Louis
I
896,925.00
Toledo, St. Louis & Western R. R. Co., j
692,000. 00
Receiver of
1,000,000.00
Trans-Mississippi Terminal R. R. Co
106,000.00
Virginia Blue Ridge Ry. Co.
38,000. 00
Virginia Southern R. R. Co
Virginian Ry. Co., The
2,000,000.00
Waterloo, Cedar FaUs & Northern Ry. Co,
1,280,000.00
Western Maryland Ry. Co
2,772,800.00
Wheehng & Lake Erie Ry. Co
2,700,000.00
WUmington, Brunswick & Southern R.
90,000.00
R.Co
Wichita Northwestern Ry. Co
381,750.00
Total
, 238,208,183.67
Loans and repayments to Nov. 15, 1921,
inclusive
,
Total loans and repayments to
Nov. 16,1922, mclusive
Repayments
from Nov. 16,
1921, to Nov.
15, 1922.
Loans outstanding
Nov. 15,
1922.
$234,000.00
3,785,000.00 ?22,,990, OOO.OO
$2,900,000.00
1,050,000.00
139,500.00
4,400,000.00
100,000.00
11,100.00
6,000,000.00
12,480,000.00
2,000.00
80,300.00
1,500,000.00
19,330,000.00
1,299,900.00
1,797,000.00
61,000.00
904,000.00
8,698,400.00
4,400,000.00
29,000.00
100,000.00
1,500,000.00
896,925.00
48,000.00
650,000.00
260,000.00
100,000.00
648,000.00
1,000,000.00
' 106,000.00
38,000.00
2,000,000.00
1,260,000.00
3,322,800.00
2,960,000.00
90,000.00
381,760.00
.58,419,450.00
77,425,512.14
269,467,217.00
21,259,033.33
317,886,667.00
98,684,545.47
219,202,121.53
I
SECRETARY OF T H E TREASURY.
E X H I B I T 76.
277
;
SECUBITIES OWNED BY THE UNITED STATES GOVEBNMENT.
[Compiled from latest reports received by the Treasury, June 30,1922.]
ObUgations of foreign governments, under authority of acts approved
Apr. 24, 1917, and Sept. 24, 1917, as amended (on basis of cash
advances, less repa3nments of principal):
Belgium
:
$347,251,013.40
Cuba
7,740,500.00
,. Czechoslovakia
61,974,041.10
France
2,933,516,448.19
Great Britain
4,135,818,358.44
Greece
15,000,000.00
Italy
i, 648,034,050.90
Liberia
26,000.00
Rumania
23,205,819.62
Russia
187,729,750.00
Serbia
26,126,674.69
' Total
Foreign obligations received from the Secretary of War on account of
sale of surplus war supplies:
Belgium
Czechoslovakia
Esthonia
:
France."
Latvia
Lithuania
Nicaragua
Poland
Rumania
Russia
Serbs, Croats, and Slovenes
Total
Foreign obligations received from the Secretary of the Navy on account
of sale of surplus war supplies:
Poland
Foreign obligations received from the American Relief Administration
on account of rehef, pursuant to act approved Feb. 25,1919:
Armenia
Czechoslovakia
Esthonia
Finland
Latvia
Lithuania
Poland
Russia
Total
Capital stock of war emergency corporations:
Capital stock of the Emergency Fleet Corporation
Capital stock of the Hoboken Manufacturers R. R. Co
,
Capital stock of the Housing Corporation, issued
Less amount retired plus cash deposits covered into Treasury
under act approved July 11,1919
,
$9,386,422,566.14
29,872,732.54
20,612,300.11
12,213,377.88
407,341,145.01
2,521,869.32
4,159,491.96
170,585.35
67,411,894.41
12,922,675.42
408,082.30
24,978,020.99
672,610,176.29
2,263,709.66
8,028,412.15
8,428,089.19
1,785,767.72
8,281,926.17
2,810,417.82
822,138.07
61,871,749.36
4,466,465.07
84,093,963.5 5
70,000,000.00
50,000,000.00
400,000.00
16,927,735.11
54,072,264.8S>
Capital stock of the Sugar Equalization Board (Inc.)
Offset by cash deposited with Treasurer United States to
credit of the board
Capital stock of the United States Grain Corporation authorized
and issued
:
:
Less amount retired
Capital stock of the United States Spruce Production Corporation.
Less cash deposited with the Treasurer of the United States to
the credit of the corporation
Capital stock of the War Finance Corporation, authorized and
issued
Less cash deposited with the Treasurer of the United States 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 R. R
Minneapolis & St. Louis R. R. Co
.:
Missouri, Kansas & Texas Ry. of Texas, receiver of the
New York Central R. R. Co
Pennsylvania R. R. Co
i
:
Pittsburgh & Lake Erie R. R. Co
Seaboard Air Line Ry. Co
Washington, Brandywine & Point Lookout R. R. Co
Total
:
6,000,000.00
14,369,856.84
600,000,000.00
476,000,000.00
—
10,000,000.00
/
25,000,000.0©
3,457,808.55
'• 6,542,193.45
600,000,000.00
308,621,622.42.
191,478,377. 58
26,165,000.00
750,000.00
52,000.00
6,500,000.00
20,000,000.00
500,000.00
1,850, OpO. 00
50,000.00
55y,887,.0(J0. 00
1 This amount does not include securities purchased by the Director General of Railroads;under the pra»
visions of section 12 cf the Federal control act, approved Mar. 21, 1918.
2.78
REPORT ON T H E FINANCES.
Equipment trust 8 per cent gold notes, acquired by Director General
of Railroads pursuant to Federal control act of Mar. 21, 1918, as
amended, and act approved Nov. 19,1919, to provide for the reim
bursement of the United States for motive power, cars, and other
equipment ordered for carriers under Federal control: a
Ann Arbor R. R. Co
Atlanta, Birmingham & Atlantic Ry. Co
Baltimore & Ohio R. R. Co
Boston & Maine R. R
Carolina, Chnchfield & Ohio Ry
•.
Charleston & Western Carolina Ry. Co
Chicago & Alton R. R. Co
Chicago & Eastern Illinois R. R. Co
Chicago, Indianapolis & Louisville Ry. Co
Cliicago Great Western R. R. Co..;
'
Chicago, Milwaukee & St. PaulRy. Co
Chicago & Western .Indiana R. R. Co
Detroit, Toledo & .Ironton R. R. Co
Detroit & Toledo Shore Line R. R. Co
ErieR. R. Co
Grand Trunk Ry. of Canada
Grand Trunk Western Ry. Co
Hocking VaUey Ryl Co
Kansas City Southern Ry. Co
.•
MaineCentral R. R. Co
Minneapolis & St. Louis R. R. Co.
Missouri, Kansas & Texas Ry. Co
:
Missouri Pacific R. R. Co
Mobile & O h i o R . R. Co
Morgantown & Kingwood R. R. Co
New York, New Haven & Hartford R. R.Co
Norfolk Southern R. R. Co
Northwestern Pacific R. R. Co
Pere Marquette Ry. Co
Rutland R. R. Co.....
'
Seaboard Air Line Ry. Co
SouthernRy. Co
Spokane, Portland & Seattle Ry. Co
. St. Louis-San Francisco Ry. Co
Texas & Pacific Ry. Co.
Toledo, St. Louis & Western R. R. Co
Wabash R. R. Co
Western Maryland Ry. Co
• WheeUng & Lake Erie Ry. Go
$228,800.00
917,000.00
5,142,800.00
5,904,600.00
1,794,000.00
227,500.00
525,200.00
213,200.00
300,300,00
188,500.00
4,751,500.00
80,600.00
244,400.00
144,300.00
1,301,300.00
258,700.00
894,400.00
819,000.00
275,600.00
347,100.00
436,800.00
365,300.00
3,008,200.00
175,500.00
2,254,200.00
1,285,700.00
114,400.00
79,300.00
2,918,500.00
107,900.00
1,430,000.00
2,974,400.00
253,500.00
4,156,100,00
691,600.00
341,900.00
3,273,400.00
248,300.00
1,326,000.00
Total
---.
-.
ObUgations of carriers acqiiired pursuant to section 207 of the transDortation act approved Feb. 28,1920, as amended:
Ann Arbor R. R. Co
550,000.00
Baltimore& OhioR. R. Co
9,000,000.00
Bangor & Aroostook R. R. Co
325,000.00
Chicago & Eastern Illinois R. R. Co
3,425,000.00
Chicago, MUwaukee & St. PaulRy. Co
....:
20,000,000.00
ErieR. R.Co
8,250,000.00
Gulf,Mobile& Northern R. R. Co..
•
480,000.00
International & Great Northern Ry. Co
=" 2,400,000.00
. Missouri Pacific R. R. Co
3,000,000.00
• NewYork, Chicago & St. Louis R. R. Co
1,000,000.00
New York, New Haven & Hartford R. R. Co
64,316,500.00
St Louis-San Francisco Ry. Co
3,000,000.00
w'heeling& Lake Erie Ry. Co
900,000.00
Total
:
Obhgations of carriers acquired pursuant to section 210 of the trans
' portation act approved Feb. 28,1920, as amended:
Akron, Canton & Youngstown Ry. Co
212,000.00
Alabama, Tennessee & Northern R. R. Corporation
475,250.00
Alabama & Vicksburg Ry. Co
1,394,000.00
Ann Arbor R. R. C!o
550,000.00
Aransas Harbor Terminal Ry
50,000.00
Atlanta, Birmingham & Atlantic Ry. Co
180,000.00
Baltimore& OhioR. R. Co
:..
3,000,000.00
Bangor & Aroostook R. R. Co
184,000.00
Birmingham & Northwestern Ry. Co
75,000.00
Boston & Maine R. R..
14,705,479.00
B uffalo, Rochester & Pittsburgh Ry. Co
1,000,000.00
Carohna, Clinchfield & Ohio Ry
8,000,000.00
Central of Georgia R. R. Co
222,040.00
Central New England Ry. Co
300,000.00
Central Vermont Ry. Co
193,000.00
Charles City Western Ry. Co
;
140,000.00
Chesapeake & Ohio Ry. Co
9,097,000.00
Chicago & Eastern lUinois R. R. Co., receiver of
785,000.00
Chicago Great Western R. R. Co
2,445,373.00.
Chicago, Indianapolis & LouisvUle Ry. Co
155,000.00
Chicago, Milwaukee & St. PaulRy. Co...
. 36,000,000.00
$49,999,800.00
"
116,646,500.00
8 The notes are in series which mature, respectively, on the 16th day of January in various years up
to 1936.
SECRETARY OF THE TREASURY.
Obhgations of carriers acquired pursuant to section 210 of the transportation act approved Feb. 28,1920, as amended—Continued.
Chicago, Rock Island & Pacific Ry. Co
.Chicago & Western Indiana R. R. C o . . .
Cisco & Northeastern Ry. Co
Cowhtz, ChehaUs & Cascade Ry. Co
Cumberland & Manchester R. R. Co
Des Moines & Central Iowa R. R., formerly the Inter-Urban Railway Co
E r i e R . R. Co
EvansvUle, IndianapoUs & Terre Haute Ry. Co
Fernwood, Columbia & Gulf R. R. Co
Flemingsburg & Northern R. R. Co
Fort Dodge, Des Moines & Southern R. R. Co
Fort Smith & Western R. R. Co., receiver of the
GainesviUe & Northwestern R. R. Co
'.
Georgia & Florida Ry., receivers of
Great Northern Ry. Co
Greene County R. R. Co
Gulf, Mobile & Northern R. R. Co
Hocking Valley Ry. Co
Illinois Central R. R. Co
Indiana Harbor Belt R. R. Co
International & Great N orthern Ry. Co., receiver of
Kansas City, Mexico & Orient R. R. Co., receiver of the
Kansas City Terminal Ry. Co
Lake Erie, Franklin & Clarion R. R. Co
Long Island R. R. Co
LouisviUe & JeffersonviUe Bridge and R. R. Co
MaineCentral R. R. Co
:
Minneapolis & St. Louis R. R. Co
Missouri, Kansas & Texas Ry. Co. of Texas, receiver of the
Missouri & North Arkansas Ry. Co
Missouri Pacific R. R. Co.
National Ry. Service Corp
New Orleans, Texas & Mexico Ry. Co
New York Central R. R. Co
New York, New Haven & Hartford R. R. Co
Norfolk Southern R. R. Co
Pennsylvania R. R. Co
Peoria & Pekin Union Ry. Co
Rutland R. R. Co
' Salt Lake & Utah R. R. Co
Seaboard Air Line Ry. Co
Seaboard Bay Line Co
:
Shearwood Ry. Co
Tampa Northern R. R. Co
Terminal R. R. Association of St. Louis
Toledo, St. Louis & Western R. R. Co., receiver of
Trans-Mississippi Terminal R. R. Co
Virguiia Blue Ridge Ry. Co
Virginian Ry. Co
Virginia Southern R. R. Co
Waterloo, Cedar Falls & Northern Ry. Co
Western Maryland Ry. Co
Wheeling & Lake Erie Ry. Co
Wichita, Northwestern Ry. Co
Wilmington, Brunswick & Southern R. R. Co
Total
Capital stock of the Panama R. R. Co
Capital stock of Federal land banks, on basis of purchases, less repayments to date:
Springfield, Mass
Baltimore, Md
Columbia, S.C
LouisviUe, Ky
New Orleans, La
.'
St. Louis, Mo
St. Paul, Minn
Omaha, Nebr
'.
Wichita, Kans
Houston, Tex
:
Berkeley, CaUf
Spokane, Wash
Total
Federal farm loan bonds, acquired pursuant to act approved Jan. 18,
1918, as extended by jomt resolution approved May 26,1920:
Federal farm loan 4^ per cent bonds
:
Federal farm loan 5 per cent bonds
$9,862,000.00
-7,817,000.00
162,863.00
45,000.00
375,000.00
633,500.00
11,574,450.00
400,000.00
33,000.00
7,250.00
200,000.00
158,000.00
75,000.00
792,000.00
3,362,000.00
60,000.00
1,433,500.00
1,665,000.00
4,144,000.00
579,000.00
194,300.00
2,500,000.00
580,000.00
23,750.00
500,000.00
162,000.00
2,373,000.00
1,382,000.00
450,000.00
3,500, OCO. 00
5,629,760.00
10,825,289.93
234,000.00
24,785,000.00
19,430,000.00
1,299,900.00
12,480,000.00
1,797,000.00
61,000.00
904,000.00
8,698,400.00
2,200,000.00
29,000.00
100,000.00
519,175.00
646,000.00
1,000,000.00
106,000.00
2,000,000.00
38,000.00
1,260,000.00
3,322,800.00
2,960,000.00
381,750.00
90,000.00
'
.
i
i
$233,991,829.93
7,000,000.00
689,985.00
630,035.00
429,510.00
325,435.00
410,465.00
321,635.00
150,965.00 ^
44,740.00
356,035.00
177,885.00
801,110.00
127,080.00
4,264,880.00
136,885,000.00
1,760,000.00
Total
:,
Securities received by the Secretary of War on account of sales of surplus war supplies
Securities received by the Secretary of the Navy on account of sales of surplus property..
Securities received by the United States Shipping Board on account of sales of ships, etc..
Grand total
279
138,635,000.00
29,138,771.32
9,870,377.78
38,752,460.33
11,057,062,849.92
280^
REPORT ON THE FINANCES.
MEMORANDUM.
Amount due the United States,from the central, branch of the Union Pacific R. R. on
account of bonds issued (Pacific R. R. aid bonds, acts approved July 1,1862, July 2,
1864, and May 7, 1878):
'
Principal
Interest
...,
Total
:...
$1,600,000.00*
1,940,373.663,640,373.55-
NOTE.—This statement is made up on the basis of the face value of the securities therein described asreceived by the "United States, with due regard for repayments. To the extent that the securities are notheld in the custody of the Treasury, the statement is made up from reports received from other Governm'ent departments and. establishments. The statement does not include securities which the United
States holds as coUateral, or as the result of the investment of trust funds (as, for example, securitiesHeld for account of the Ahen Property Custodian, the United States Government life insurance fund, and
other similar trust funds).
EXHIBIT 77.
O B L I G A T I O N S OF F O R E I G N G O V E R N M E N T S H E L D B Y T H E TJNITED S T A T E S , T O G E T H E R WITH I N T E R E S T A C C R U E D
A N D R E M A I N I N G U N P A I D T H E R E O N A S O F T H E L A S T I N T E R E S T P E R I O D P R I O R TO O R E N D I N G W I T H
N O V E M B E R 15, 1922.
Obligations a c q u i r e d u n d e r L i b e r t y b o n d acts.
Obligations a c q u i r e d from
sales of s u r p l u s w a r m a terial (act of J u l y 9,1918).
Country.
Principal.
Interest (including interest d u e
N o v . 15, 1922).
Principal.
Interest.
Obligations a c q u i r e d b y Obligations held b y
U n i t e d States Grain
A m e r i c a n relief a d m i n Corporation on a c i s t r a t i o n on a c c o u n t of
coun b bf sales of flour
relief (act of F e b . 25,
(act of Mar. 30, 1920).
1919).
Total.
Total i n d e b t e d ness.
o
Principal.
Interest.
Principal.
Interest.
Principal.
Interest.
Armenia
$8,028,412.15 $1,204,261. 83 $3,931,505.34 $472,995. 05 $11,959,917.49
$1,677,256.88 $13,637,174.37
26,942,394.00
Austria ..
24,055,708.92
24,055,708.92 2,886,685.08
2,886,885.08
Belgium
$347,25i,6i3.46 $60,073,383. 65 $29,872,732.54
377,123,745.94 •60,073,383.65 437,197,129. 59
( 0 (2)
Cuba
7,740,500.00
7,740,500.00
7,740,500.00
(2)
(2)
61,974,04L10
.91,887,668.65
964,213.38 .2,873,238.25 344,788.60
Czechoslovakia
14,404,536.67 106,292,20.5.32
10,136,141. 81 20,612,300.11 $2,959,392.88 6,428,089.19
16,088,771.26
12,213,377. 88 1,832,006.70 1,785,767.72
13,999,145.60
257,618.96
Esthonia
2,089,625.66
9,294,362.27
8,281.926.17
8,281,926.17 1,012,436.10
Finland..
1,012,436.10
2,933,405,070.15 503,386,.035. &i 407,341,145. 01
3,340, 746,215.16 503,386,035.61 3,844,132,250.77
France
(•-'
)
Great B r i t a i n . . 3 4,135,818,358.44 < 811,044,201. 85
3 4,135,818,358.44 <611,044,20L85 4,746,862,560.29
15,000,000.00
750,000.00
Greece .
15,750,000.00
15,000,000.00
750,000.00
Hungary . .
1,685,835.61
1,685,835.61 202,300.28
1,888,135.89
202,300.28
Italy
::
l,64cS,034,050.90 284,681,434.61
1,648,034,050.90 284,681,434. 61 1,932.715,485.51
391,562. 67
2,521,869. 32 252,014. 20 2,610,417. 82
Latvia
5,132,287.14
.
643,576.87
5,775,864. 01
26,000.00
26,000.00
3,518. 85
Liberia . . .
29,518. 85
3,518. 85
822,136. 07
623,923.80
Lithuania
4,981,628.03
123,320.40
4,i59,49i.96
5,728,872.23
747,244.20
170,585. 35
Nicaragua
170,585. 35
170
585.35
0)
59,678,604. 07 7,042,817.10 51,671,749.36 7,750,762.41 24,312,514.37 2,825,229.50 135,662,867.80
Poland
17,618,809. 01 153,281,676.81
23,205,819.52
3,925,703.00 12,922,675. 42 1 9,38.401.34
36,128,494.94
Rumania
41,992,599.28
5,864,104. 34
39,214,328.16
187,729,750. 00
Russia . .
192,601,297.37
488,192. 56
406,082.30
10,152.06 4,465,465.07
39,712,670.78 232,313,968.15
4,611,738.14 24,978,020.99, 3,382,349.78
26,126,574. 59
Serbia
51,104,595. 58
59,098,683.50
7,994,087.92
Total....
m
tei
o
W
>
Ul
d
*
9,388,311,178.10 1,517,828,4S3. 68 574,876,884. 95 18,041,057. 86 84,093,983.55 12,192,368.3156,858,802.49 6,731,998. 5110,102,140,829.09 1,554,791,908. 36 11,653,932737. 45
1
I
1 No interest due on Nicaraguan notes until maturity, as is also the case of certain Belgian obligations aggregating $2,284,151.40.
2 Interest has been paid as it became due.
•'
3 Includes .$61,000,000 of British obligations which were given 'for Pittman silver advances and for which an agreement for payment has been made.
4 Gj-e^t Britain paid $50,000,000 on Octobej: 16, 1922^ and $cO,QOO,OOQ gn November 15, 1922^ on account of interest on other than fittman silver obligations.
tooo
282
REPORT ON T H E FINANCES.
EXHIBIT
78.
SPECIMEN OF OBLIGATION OF AUSTRIA.
OBLIGATION OP THE GOVERNMENT OP A U S T R I A — T W E N T Y F O U R MILLION .SIXTY S I X
THOUSAND SEVEN H U N D R E D N I N E T Y E I G H T DOLLARS AND FIFTY S I X CENTS
($24,066,798.56).—RELIEP S E R I E S B OP N I N E T E E N H U N D R E D AND T W E N T Y . —
No. I.
.^
The Goyernment of Austria for value received, promises tp pay
to the Government of the United States of America, or assigns, on
the First Day of January, Nineteen Hundred and Twenty-Five, the
principal sum of Twenty Four Million Sixty-Six Thousand Seven,
Hundred Ninety Eight Dollars and Fifty-Six Cents ($24,066,798.56),
on which interest will be paid half 3^early at the rate of six per cent
(6%) per annum from date of this obligation to the date of payment.
Both the principal and the interest of this obligation will be paid in
gold coin of the United States of America, of the standard weight
and finieness existing at the date of this obligation at the Treasury
of the United States of America in the city of Washington, District
of Columbia, or at the option of the holder, at the Sub-Treasury of
the United States of America in the City of New York.
The principal and interest of this obligation will be paid without
deduction for and will be exempt from any and all tax and/or charge,
present and future, imposed by authority of the Government of
Austria or its possessions, or by any political or taxing authority
within Austria.
This obligation is one of a series of obligations of similar tenor but
in different amounts and payable in different currencies, all maturing
on the first day of January Nineteen Hundred and Twenty-Five,
designated as ^^ Relief Series B of 1920'\
The Government of Austria agrees that no payment will be made
upon or in respect of any of the obligations of said Series issued by
the Government of Austria before, at or after, maturity, whether for
principal or for interest, unless a similar payment shall simultaneously
be made upon all obligations of the said Series issued by the Government of Austria in proportion to the respective obligations of said
Series.
Pursuant to the powers conferred upon it, the Reparation Commission has authorized the Austrian Government, uncier the control
of the Austrian Section of th6 Reparation Commission, to issue the
present series of bonds, which shall be a first charge upon all the
assets and revenues of Austria, and shall have a priority over costs
of reparation under the Treaty of Saint-Germain, or under any treaty
or agreement supplementary thereto, or under arrangements concluded between Austria and the Allied and Associated Powers during
the Armistice signed on November 3rd, 1918, without prejudice to
the obligations of Austria to pay the expenses of the Armies of
Occupation, of the Reparation Commission and of restitution, and
to make deliveries and payments in kind under the Treaty of SaintGermain (except under Article 181, and Paragraph 19 of Annex H
of Part VIII) and under any protocols or agreements in force to the
extent to which such deliveries may be required by the Reparation
Commission or, in accordance with the provision of the said Treaty,
protocols or agreements, by an interested Power.
SECRETARY OF THE TREASURY.
. 283
I N W I T N E S S W H E R E O F the Government of Austria has caused this
obligation to be executed and its official seal attached by Dr. Richard
Reisch, Secretary of State for Finances duly authorized and empow•ered for that purpose.
• Dated September 4, 1920.
Signed for the Government of Austria
WITNESS :
(Sgd)
Dr. SIMON
(Sgd)
REISCH
Secretary of State for Finances.
(Sgd)
Dr. ScHULLER
(Sgd)
Dr. WLADIMER BECK
President of the Audit Office.
Countersigned for the Austrian Section of the Reparation Commission.
(SEAL)
(Sgd)
H. KLOBUKOWSKI
(Sgd)
SCARAMANGA
(Notation on back of obligation:)
The aforegoing obligation has been taken from the Government of
Austria in payment of food commodities sold by the United States
Grain Corporation to the Government of Austria..
The United States Grain Corporation finds that the Government
of Austria is entitled to an allowance amounting to Eleven Thousand
and Eighty-nine Dollars Sixty-Four Cents ($11,089.64) for damaged
flour on the steamship ''Gudvun^\ and that the aforegoing obligation
should be credited in the said amount.
U N I T E D STATES GRAIN CORPORATION
(Signed)
EDW. M. FLESH
Vice-President and Treasurer.
Dated at New York, N. Y., November 4th, 1920.
EXHIBIT
79.
L E T T E R F R O M T H E S E C R E T A R Y OF STATE CONCERNING T H E
L i a U I D A T I O N OF R U S S I A N OBLIGATIONS I N T H E
UNITED
STATES, AND THE'REPLY O F T H E SECRETARY O F T H E TREASURY.
DEPARTMENT OF STATE,
Washington, May 23, 1922.
I desire to refer to the arrangements
made toward the close of 1917 for the liquidation of the financial
business of Russia in this country, following the fall of the last
recognized Russian Government.
I t appears from the files of the State Department, and from published records, that the extraordinarily difficult task of dealing with
the Russian financial situation in this country under the circumstances
indicated was undertaken jointly by the State and Treasury Departments in cooperation with Mr. Boris Bakhmeteff, representing the last
recognized Russian Government, and that contracts then outstanding
with American manufacturers to the value of more than $102,000,000
were successfully liquidated with funds of the Russian Government
amounting to much less than that sum. I t is the understanding of
the State Department that this process of liquidation has now been
brought to a practifcal conclusion, and that such business as remains
is in proces^of orderly settlement.
M Y D E A R M R . SECRETARY:
284
REPORT ON THE FINANCES. ,
'
Having regard to recent public discussion of the subject, may I ask:
that you confirm these facts and furnish any additional information^
. from the records of the Treasury Department which you may considerhelpful to a public understanding of the matter?
I am, my dear Mr. Mellon,
Very sincerely yours,
(Sgd)
CHARLES E . H U G H E S .
TREASURY DEPARTMENT,
Washington, June 2, 1922.
I received your letter^of May 23, 1922,.
regarding the liquidation of the Russian Government's financial obli-.
gations in this country after the fall of the last recognized Russian
Government.
The facts set forth in your letter are in accord with the information^
possessed by the Treasury on the subject, and I am glad to avail
myself of your suggestion to furnish any additional information from
the Treasury's records that may be considered helpful to a publicunderstanding of the matter.
I t appears that under the authority of the Liberty Bond Acts theSecretary of the Treasury, with the approval of the President, madecertain loans to the Provisional Government of Russia for the purposeof more effectually providing for thie national security and defense:
and prosecuting the war. The net amount of the loans so made is$187,729,750. Although a credit of $100,000,000 was established by
the Treasury in favor of the Russian Government on May 16, 1917,
the first loan to that Government was not actually made until July
6, 1917, and was in the amount of $35,000,000. No loans were madeby the Treasury to the Russian Government after the fall of the
Provisional Government early in November, 1917, with the exception,
of an advance of $1,329,750 on November 15, 1917, the proceeds of
which were simultaneously applied by the Russians to the payment
of interest to the Government of the United States.
The funds advanced by the Treasury in making the above loans^
were used solely for the purchase of obligations of the Russian Government in accordance with the Liberty Bond Acts, in the same manner
as with other foreign governments, and the funds so paid for these
obligations became the funds of the Russian Government^ All of"
the obligations thus purchased are signed in the name of the Provisional Government of Russia by Mr. Boris Bakhmeteff who was therepresentative of that Government designated to the Treasury by theDepartment of State as being authorized to sign them in the name and
on behalf of that Government.
In connection with the loans so made to the Russian Government,
the latter rendered reports to the Treasury of its expenditures. These
reports cover the period from April 6, 1917, the date of the United
States Government's entry into the war, to March 4, 1921, and show
^total expenditures for that period of about $231,000,000. The principal items of such expenditures appear to have been munitions, including remounts; exchange and cotton purchases, and other supplies.,
I t would seem clear that onl}'' a comparatively small portion of thetotal expenditures of the Russian Government in this colintry duringMY D E A R M R . SECRETARY:
^
^
SECRETARY OF T H E TREASURY.
285
the period referred to was made from funds advanced by the United
States Treasury, in view of the fact'that it appears from the reports
filed by the Russian representatives with this Department that of the
:S187,729,750 so loaned about $125,000,000 was transferred by the
Russian Ambassador to the account of the Russian Ministry of
Finance at Petrograd and only the balance of about $62,000,000 was
retained by the Russian Ambassador for expenditure in this country.
According to information shown by the Treasury records, the Russian Government's financial situation in this country at the time of
the fall of the Provisional Government in November, 1917, was, in a
general way, as follows:
Its bank balances then on hand amounted to about $56,000,000.
The Russian Ambassador has estimated that about $10,000,000
thereof represented the balance remaining from this Government's
loans to Russia, and that the rest of such funds consisted of moneys
•derived.from other sources, such as British credits and loans made by
private bankers in this country. At this time the Russian Governinent also had a large amount of property>in the United States, con-sisting mainly of war supplies. Apart from its indebtedness to the
United States Government on account of the loans above mentioned,
t h e Russian Government's financial obligations in the United States
-arose principally out of contracts for supplies and certain private loans
issued in this country. The contractual liabilities amounted to
about $102,000,000, and the total principal amount of such private
lloans was $86,000,000. In these circumstances, the Department
•of State and the Treasury considered it advisable to enter into arrange.ments with the Russian Ambassador wit'h a view to effecting such an
application of the Russian Government's available assets in this
^country that the interests of the American manufacturers and con'tractors and of the United States Government would be protected.
I n accordance with these arrangements, the Russian Ambassador
deposited about $47,000,000 of the $56,000,000 cash above referred
rto with the National City Bank of New York in a so-called liquidation
account, subject to his disposition. This money was to be devoted to
t h e general liquidation of Russian obligations in this country. The
balance of approximately $9,000,000 was placed in special accounts
with that bank to be used for certain specific purposes. These funds
also were subject to the Ambassador's disposition. Pursuant to an
understanding had with the National City Bank, however, no withdrawals were to be made from the liquidation account without the
bank's first notifying the Treasury and ascertaining whether it
objected to the particular disbursement proposed.
I t further appears that from December 1,1917, when the liquidation
account was opened, to March 4, 1921, when the account was closed,
.-additional deposits were made therein, aggregating a total amount of
about $29,000,000. The funds so deposited resulted chiefly from the
.sale of Russian property in this country and the charter hire from
^certain Russian ships. This made the total deposits in the liquidation account aggregate about $76,000,000, and the total disbursements from this account for the period in question also amounted to
about $76,000,000. From the reports of the Russian representatives,
it appears that these disbursements were made for supplies, transportation, storage, inspection-, interest on loans made by the United States
Government and on private loans floated in this country, salaries and
286
' REPORT ON THE. FINANCES.
upkeep of the Russian Embassv and consulates and other Russianinstitutions in the United States, and various miscellaneous purposes. I t is further shown by such reports that payments on contracts for supplies amounted to approximately $36,000,000, and t h a t
about $10,000,000 was expended for interest on said loans. I t willbe noted that these two items alone are greatly in excess of the portion
of the liquidation funds estimated by the Russian Ambassador t o
have been derived from American Government loans.
From the pertinent records, it appears that the settlement of the
contracts outstanding in this country at the time of the fall of the
Provisional Government was effected by the Russian Ambassador in
cooperation with representatives of the Department of State, of the
Treasury, and of the War Industries Board, with the result that theoutstanding contracts were settled by payment, cancellation, and
other means, without loss to American contractors. This settlement,.
I should say, may well be regarded as a noteworthy achievement in
view of the extent of the liabilities involved in such contracts and the
comparatively limited amount of cash available here to the Russian
Government for use in respect thereto.
On February 14, 1921, the Treasury was informed by the Russian
representatives that the liquidation of the outstanding liabilities of
the Provisional Government of Russia in regard to contracts placed
in the United States had been for the most part completed, and an
arrangement was thereupon entered into whereby the liquidation account as such was closed out March 4, 1921, and the balance therein,.
amounting to $70,426.34, paid to the Treasurer of the United States
and applied on account of- interest due and payable on Russian
obligations held by the United States. I t was agreed by the Russian
representatives, however, that sums which might still accrue to them
from the remaining business of liquidation which would, prior to theclosing out of the liquidation account, have been payable into t h a t
account, should likewise be applied on interest due on said obliga-^
tions. Such sums to the aggregate amount of $337,766.73 have actually been paid since March 4, 1921, by the Russian representatives
to the Treasurer of the.United States and applied on interest dueon the Russian obligations. I t is the understanding of the Treasury
that the funds so paid were realized chiefly from further sales of the
Russian Government's propertj^.
As you are aware, all of the information above given with respect
to loans made by this Government to Russia, and the greater part of
the data set forth in regard to the liquidation of the Russian Government's financial obligations in this country after the fall of the P r o visional Government, have heretofore been made public in variousreports and other documents. Attention is particularly called to the
Annual Report of the Secretary of the Treasury for the fiscal year
1920; the testimony of Mr. Polk, then the Under Secretary of State,,
and of Mr. Leffingwell, a former Assistant. Secretary of the Treasury,,
before the House Committee on Expenditures in the State Department on" June 26 to September 8, 1919, in connection with House
Resolution 132; the correspondence between the Russian Ambassador
and the Department of State read before the subcommittee of the
Senate Committee on Foreign Relations during the second session of
the 66th Congress at the hearing on Senate Resolution 263 and printed
on pages 501-504 of Senate Report 526, dated April 14, 1920; the
hearings on House Resolution 635 before the Committee on Foreign
SECRETARY OF THE TREASURY.
'287
Affairs of the House, 66th Congress, third session; Senate Document
No. 86, 67th Congress, second session, entitled '^ Loans to Foreign
Governments"; the testimony of former Secretary of the Treasury
Houston and former Assistant Secretary of the Treasury Kelley
before the Senate Committee on the Judiciary on February 2 to
February 7, 1921; and the letter dated,February 25, 1921, from Secretary Houston in response to Senate Resolution 417, printed in the
Congressional Record for February 26, 1921.
I n addition to reports showing the Russian Government's expenditures since the entry of the United States Government into the war,
the Russian Embassy has filed with the Treasury Department detailed reports and statements, with explanatory memoranda, in
respect to the liquidation by such Embassy, after the fall of the
Provisional Government, of the Russian Government's obligations
in the United States out of that Government's assets in this country,.
and I understand that the Russian representatives have shown every
disposition to make all possible information available to the Treasury.
Sincerely yours,
(Signed)
A. W. MELLON, Secretary.
Honorable CHARLES E . HUGHES,
'
Secretary of State.
EXHIBIT
80.
[Department Circular No. 154 (revised). ChiefClerk.]
, ACCEPTANCE OF UNITED STATES,BONDS AND NOTES AS SECURITY
IN LIEU OF SURETY OR SURETIES ON PENAL BONDS.
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,
Washington, May 15, 1922.
To Bond-Approving Officers, the Treasurer of the United States,.
Federal Reserve Banlcs, and Others Concerned:
Treasury Department Circular No. 154, dated June 30, 1919, is
hereby amended and supplemented so as to read as follows:
The following rules and regulations are prescribed for caiT-ying intoeffect Section 1329 of the Revenue Act of 1921, approved November
23, 1921, which provides as follows:
SEC. 1329. That wherever by the laws of the United States or regulations made
pursuant thereto, any person is required to furnish any recognizance, stipulation,
bond, guaranty, or undertaldng, hereinafter called "penal bond," with surety^or
sureties, such person may, in lieu of such surety or sureties, deposit as security with
the official ha^dn.e• authority to approve such penal bond, United States Liberty bonds or
other bonds or notes of the United States in a sum equal at their par value to the amount
of such penal bond required to be furnished, together with an agreement authorizing
such official to collect or sell such bonds or notes so deposited in case of any default in the
performance of any of the conditions or stipulations of such penal bond. The acceptance
of such United States bonds or notes in lieu of surety or sureties required by law shall
have the same force and effect as individual or corporate sureties, or certified checks,
bank drafts, post-office money orders, or cash, for the penalty or amount of such penal
bond. The bonds or notes deposited hereunder and such other United States bonds
or notes as may be substituted therefor from time to time as such security, may be
deposited with the Treasurer of the United States, a Federal reserve bank, or other
depositary duly designated for that purpose" by the Secretary, which shall issue receipt
therefor, describing such bonds or notes so deposited^ As' soon as security for the performance of such penal bond is no longer necessary, such bonds or notes so deposited,
shall be returned to the depositor: Provided, That in case a person or persons supplying:
:288
REPORT ON T H E FINANCES.
.a contractor with labor or m'aterial as provided by the Act of Congress, approved
February 24, 1905 (33 Stat. 811), entitled " A n Act to amend an Act approved August
thirteenth, eighteen hundred and ninety-four, entitled 'An Act for the protection of
persons furnishing materials and labor for the construction of public works,'" shall
file with the obligee, at any time after a default in the performance of any contract
.:subject to said Acts, the application and affidavit therein provided, the obligee shall
not deliver to the obligor the deposited bonds or notes nor any surplus proceeds thereof
until the expiration of the time limited by said Acts for the institution of suit by such
person or persons, and, in case suit shall be instituted within such time, shall hold said
bonds or notes or proceeds subject to the order of the court having jurisdiction thereof:
Providedfurther. That nothing herein contained shall affect or impair the priority of the
claim of the United States against the bonds or notes deposited or any right or remedy
granted by said Acts or by this section to the United States for default upon any obligat i o n of said penal bond: Provided further ^ That all laws inconsistent with this section
-are hereby so modified as to conform to the provisions hereof: And provided further,
That nothing contained herein shall affect the authority of courts over the security,
where such bonds are taken as security in judicial proceedings, or the authority of any
-administrative officer of the United States to receive United States bonds for security
in cases authorized by existing laws. The Secretary may prescribe rules and regulations necessary and proper for carrying this section into effect.
1. ACCEPTANCE OF BONDS AND NOTES BY BOND-APPROVING OFFICERS.
1. Any individual, paj-tnership, or corporation required by the
laws of the United States or regulations made pursuant thereto to
furnish any recognizance, stipulation, bond, guaranty, or undertaking (hereinafter called penal bond), with surety or sureties, may,
in lieu of such surety or sureties, deposit as security with the official
having authority to approve such penal bond (hereinafter called
the bond-approving officer). United States Liberty bonds, Victory
notes, or other United States bonds or notes in a sum equal at their
par value to the amount of the penal bond required to be furnished,
together with a power of attorney and agreement in the form hereinafter prescribed, authorizing the bond-approving officer to collect
or sell such bonds or notes so deposited in case of any default in the
performance of any of the conditions or stipulations of such penal
Dond. The acceptance of such United States bonds or notes in lieu
of surety or sureties required by law shall have the same force and
effect as individual or corporate sureties, or certified checks, bank
drafts, post-office money orders, or cash, for the penalty or amount
of such penal bond. The term '^bond-approving officer," where it
appears in this circular, shall be deemed to include the officer's
.successors in office. Treasury certificates of indebtedness are not
acceptable under said Section 1329 of the Revenue Act of 1921 as
security in lieu of surety or sureties.
2. The individual, partnership, or corporation required to fiirnish
a n y penal bond, who cleposits United States bbnds or notes as security
in lieu of surety or sureties in accordance with the provisions of this
circular, must be the owner of the bonds or notes deposited, and is
hereinafter called the obligor. United States bonds or notes may be
deposited with bond-approving officers pursuant to the provisions
of this circular in either coupon or registered form. Coupon bonds
or notes shaU have attached thereto all coupons unmatured at the
date of such deposit, and all matured coupons should be detached.
Registered bonds or notes must be registered in the name of the
obligor, and duly assigned, at or before the date of such deposit,
either to the bond-approving officer with whom they are deposited
or his administrative superior, or in blank, in accordance with the
Tegulations of the Treasury Department in relation to United States
SECRETARY OF THE TREASURY.
289
bonds. (See Treasury Department Circular No. 141, dated September
15, 1919, as amended and supplemented.)
3. The United States bonds or notes to be deposited must in every
case be delivered to the bond-approving officer at the obligor's risk
and expense. Coupon bonds or notes and registered bonds or notes
assigned in blank or for exchange for coupon bonds or notes cannot
safely be forwarded by registered mail unless insured by the obligor
against risk of loss in transit. Registered bonds or notes, unless
assigned in blank or for exchange for coupon bonds or notes, need
not be so insured when forwarded by registered mail, unless the
obligor so elects. The bond-approving officer shall issue a receipt
in duplicate, substantially in Form A, hereto attached, for the
United States bonds or notes so deposited, the original of the receipt
to be given to the obligor and the duplicate to be retained by the
bond-approving officer for his files.
4. At the time of the deposit of any United States bonds or notes
with a bond-approving officer in accordance with the provisions of
this circular, the obligor shall deliver to the bond-approving officer
a duly executed power of attorney and agreement, in favor of the
bond-approving officer, authorizing such officer to collect or sell
, such bonds or notes so deposited in case of any default in the performance of any of the conditions or stipulations of the penal bond,
and to apply the proceeds of such sale or collection, in whole or in
part, to the satisfaction of any damages, demands, or deficiency
arising by reason of such default. The power of attorney and
agreement shall be, in the case of an individual, substantially in
Form C, hereto attached; in the case of a partnership, substantially
in Form D, hereto attached; and in the case of a corporation, substantially in Form E, hereto attached.
5. In connection with the acceptance pf United States bonds or
notes hereunder as security in lieu of surety or sureties, bondapproving officers must satisfy themselves as to the ownership of the
bonds or notes deposited and the sufficiency of the power of attorney
and agreement, and in the case of registered bonds or notes, as to the
regularity of the assignments as well, and, in general, that the deposit
is made in conformity with the provisions of this circular.
6. Any obligor who deposits United States bonds or notes in accordance with the provisions of this circular may, upon written application to and with the approval of the bond-approving officer, substitute
for the bonds oi: notes so deposited (a) other United States bonds or
notes in a sum equal at their par value to not less than the par amount
of the United States bonds or notes to be withdrawn, upon compliance with all the provisions of this circular applicable to an
original deposit of United States bonds or notes in lieu of surety or
sureties, or (b) a penal bond with surety or sureties or such other
security as may be allowed by law. The bonds or notes withdrawn
shall be returned in the manner hereinafter provided for the return
of bonds and notes deposited.
I I . DEPOSITS OF BONDS AND NOTES BY BOND-APPROVING
/
WITH DEPOSITORIES.
OFFICERS
7. United States bonds and notes deposited with bond-approving
officers as security in accordance with the provisions of this circular,
14263—n 1922
19
290
REPORT ON THE FINANCES.
and such other United States bonds or notes as may be substituted
therefor from time to time as such security, may be deposited by
bond-approving officers with the Treasurer of the United States, a,
Federal Reserve Bank or any branch Federal Reserve Bank having
the requisite facilities, or other depository duly designated for that
purpose by the Secretary of the Treasury; provided, however, that
bond-approving officers shall deposit with the Treasurer of the
United States all United States bonds and notes received by them
in the District of Columbia pursuant to the provisions of this circular..
Depositaries of public moneys are not authorized to act as depositories for United States bonds or notes accepted under this circular.,
unless specifically designated for that purpose by the Secretary of
the Treasury. Any authorized depository receiving deposits of
United States bonds or notes from bond-approving officers in accordance with this circular shall give receipt therefor in duplicate, describing the bonds or notes so deposited, substantially in Form B, hereto
attached, the original to be delivered to the bond-approving officer
and the duplicate to be retained by the depository for its own files.
The bond-approving officer will hold the original receipt subject to
the instructions of his administrative superior. United States bonds
or notes so deposited with an authorized depository may be withdrawn only by or on the written order of the bond-approving officer.
8. United States bonds and notes accepted by bond-approving
officers from obligors under this, circular, and not deposited by them
with authorized depositories, will be hel'd'at the risk of the respective
bond-approving officers, subject to such regulations and instructions
as may be prescribed for their guidance by their respective administrative superiors. Coupon bonds or notes and registered bonds or notes
assigned in blank or for exchange for coupon bonds or notes are in
effect bearer obligations and must be kept in safe custody at peril;
registered bonds or notes not assigned in blank or for exchange for
coupon bonds or notes must also be kept in safe custody, but in the
event of loss or destruction may be replaced upon compliance with
the provisions of law and the regulations of the Treasury Department
applicable thereto.
9. Bond-approving officers desiring to deposit United States bonds
or notes received by them with authorized depositories must deliver
such bonds or notes to the depository, without risk or expense to the
depository. Coupon bonds or notes and registered bonds or notes
assigned in blank or for exchange for coupon bonds or notes can not
safely be shipped by registered mail unless covered by insurance.
Registered bonds or notes not assigned in blank or for exchange for
coupon bonds or notes may be forwarded by registered mail uninsured,
in. RETURN OR OTHER DISPOSITION OF BONDS AND NOTES DEPOSITED.
10. The obligor shall be entitled to receive the interest accruing
upon United States bonds or notes deposited in accordance with this
circular, in the absence of any default in the performance of any of
the conditions or stipulations of the penal bond. The interest on
any registered bonds or notes which the obligor is entitled to receive
hereunder will be paid by check in regular course to the registered
holder. The coupons for any interest on coupon bonds or notes
/
SECRETARY OF THE TREASURY.
291
which the obligor is entitled to receive hereunder will, upon written
application from the obligor to the bond-approving officer, be detached, as they mature, from the bonds or notes deposited and forwarded to the obligor at the obligor's risk and expense, either by
the bond-approving officer or upon his written order by the depository
with which the bonds or notes may be deposited, or, at the direction
of the bond-approving officer, collected by the depository and check
therefor forwarded to the obligor. In the absence of written application therefor by the obligor, coupons for interest on coupon bonds
or notes to which the obligor may be entitled hereunder shall remain
attached to the bonds or notes deposited, subject to the provisions
of this circular.
11. As soon as security for the performance of the penal bond is
no longer necessary, the United States bonds or notes deposited in
lieu of surety or sureties on such penal bond, together with the power
of attorney and agreement accompanying such bonds or notes, shall
be returned to the obligor by the bond-approving officer, without
application therefor from the obligor. The determination of the
question whether security is any longer necessary for the performance of the penal bond.shall rest with the bond-approving officer
and such other officers as shall have jurisdiction in the premises under
the provisions of law and administrative regulations which may be
applicable; provided, however, that in case a person or persons supplying labor or material as provided by the Act of Congress, approved
February 24, 1905 (33 Stat. 811), entitled ''An Act to amend an Act
approved August 13, 1894, entitled 'An Act for the protection of
persons furnishing materials and labor for the construction of public
works,'" shall file with the obligee, at any time after a default in the
performance of any contract subject to said Acts, the application and
affidavit therein provided, neither the obligee nor the bond-approving
officer shall deliver to the obligor the deposited bonds or notes or
any surplus proceeds thereof until the expiration of the time limited
by said Acts for the institution of suit by such person or persons (viz.,
one year from the date of final settlement of the contract for the
performance of which the bonds or notes were pledged), and, in case
suit shall be instituted within such time, shall hold said bonds or
notes or proceeds subject to the order of the court having jurisdiction
thereof; provided, further, t h a t nothing herein contained shall affect
or impair the priority of the claim of the United States against the
bonds or notes deposited or any right or remedy granted by said
Acts or under this circular to the United States for default upon
any obligation of said penal bond.
12. B'onds or notes to be returned to the obligor will be forwarded
at the obligor's risk and expense, either by the bond-approving
officer, or upon his written order by the depository with which tho
bonds or notes may be deposited, and unless delivered direct to the
obligor, will be forwarded, in the absence of other written instructions
and remittance to cover expenses, by express, collect, except t h a t
registered bonds or notes not assigned in blank or for exchange for
coupon bonds or notes may be forwarded by registered mail, uninsured. Registered bonds or notes assigned to the bond-approving
officer or his administrative superior shall be reassigned to the obligor
before their return.
292
REPORT ON T H E FINANCES.
13. Any obligor who desires to withdraw a portion only of the
bonds or notes deposited, by reason of reduction in liability under
the penal bond, shall inake written application for such withdrawal
to the bond-approving officer, who shall, if he approve such application, return such portion of the bonds or notes to the obligor.
14. Upon the complete or partial return to the obligor of bonds or
notes deposited as security under the provisions of this circular, the
bond-appro ving officer shall require from the obligor a receipt in
duplicate, substantially in Form G, hereto attached, and shall further
require the obligor, in case of complete return, to surrender the original receipt on Form A.
IV. FORM OF PENAL BONDS WITH UNITED STATES BONDS OR
AS SECURITY.
NOTES
15. Penal bonds on which United States bonds or notes are accepted as security in lieu of surety or sureties may be substantially
in Form F, hereto attached. Administrative offices of the Government may, however, use other forms of penal bonds appropriate to
the work of their respective offices, provided that upon the execution
of the penal bond the principal shall indorse on the face thereof and
sign the following statement:
The United States bonds/notes described in t h e annexed schedule are hereby
pledged as security for the performance and fulfillment of the foregoing undertaking
in accordance with Section 1329 of the Revenue Act of 1921, approved November
23, 1921, and Treasury Department Circular No. 154, dated May 15, 1922.
Principal on the above bond.
16. Nothing contained in this circular shall be construed as modifying the existing practice or duties of administrative offices in
handling penal bonds, except to the extent made necessary under the
terms of this circular, by reason of the acceptance of United States,
bonds or notes as security in lieu of surety or sureties thereon.
V. SPECIAL PROVISIONS.
17. General Supply Committee,—^United States bonds and notes
deposited to guarantee proposals or bids submitted to the General
Supply Committee, or as security for the performance or fulfillment
of contracts made through said committee, shall either be delivered
in person or forwarded by registered mail at the obligor's risk and
expense to the Chief Clerk of the Treasury Department, who shall
deposit said bonds or notes with the Treasurer of the United States
against receipts therefor to be issued in triplicate. The original and
duplicate of the receipt shall in each case ue delivered to the Chief
Clerk of the Treasury Department, who shall retain the original
receipt and transmit the duplicate to the Director of Supplies, Treasury Department, Washington. Bonds or notes thus deposited may
be withdrawn only by or on the written order of the Director of
Supplies, countersigned by the Chief Clerk of the Treasury Department, and the surrender of the original and duplicate receipt. In
no instance should United States bonds or notes be forwarded to the
General Supply Committee with the proposal or contract forms.
SECRETARY OF THE TREASURY.
'293
0
Coupon bonds or notes and registered bonds or notes assigned in
blank or for exchange for coupon bonds or notes forwarded by registered mail should be insured by the obligor against risk of loss in
transit. Registered bonds or notes not assigned in blank or for
exchange for coupon bonds or notes need not be insured against loss
in transit, unless the obligor so elects. The regulations prescribed
in sections 2, 4, and 11 of this circular with respect to the assignment
of registered bonds or notes, the power of attorney and agreement to
accompany the bonds or notes, the substitution of other bonds or
notes, and the return of bonds or notes to the obligors, shall apply
to all United States bonds or notes accepted by the General Supply
Committee as guarantees on proposals or as security for the performance of contracts made by such committee. Bonds or notes
tendered by unsuccessful bidders will be returned promptly.
18. Collectors of customs.—The acceptance by collectors of customs
of United States bonds or notes in lieu of surety or sureties on penal
bonds shall be governed by the general rules and regulations contained
in this circular, except as modified with the approval of the Secretary
of the Treasury to cover special cases.
19. CoUectors of internal revenue.—Special instructions for the guidance of collectors of internal revenue in accepting United States
bonds or notes in lieu of surety or sureties on penal bonds will be
issued through the office of the Commissioner of Internal Revenue,
upon the approval of the Secretary of the Treasury.
20. Other Departments and establishments.—r-'QonA.-2i,^^ToV\ng officers
of other Departments and establishments of the Government accepting Liberty bonds. Victory notes, or other United States bonds or
notes in lieu of surety or sureties under the provisions of Section 1329
of the Revenue Act of 1921, shall be governed by the provisions of
this circular. This circular may be modified or amended only upon
the approval of the Secretary of the Treasury.
VI. OTHER DETAILS.
21. Nothing contained in this circular shall affect the authority of
courts over the security when United States bonds or notes are taken
as security in judicial proceedings, or the authority of any administrative officer of the United States to receive United States bonds or
notes for security in cases authorized by provisions of law other than
Section 1329 of the Revenue Act of 1921^ approved November 23,
1921.
22. The Secretary of the Treasury may withdraw or amend at any
time Or from time to time any or all of the foregoing rules and regulations, subject, however, to the provisions of Section 1329 of the Revenue Act of 1921, approved November 23, 1921.
A. W. MELLON,
Secretary of the Treasury.
294
REPORT ON T H E
FINANCES.
FoiiM A.
R E C E I P T OF B O N D - A P P R O V I N G O F F I C E R F O R U N I T E D STATES B O N D S OR N O T E S ACCEPTED
AS S E C U R I T Y .
(City.)
(State.)
(Date.)
The undersigned hereby acknowledges receipt of the United States bonds/notes
hereinafter described, deposited,as security in lieu of surety or sureties on
—
, filed with
(Description of penal bond.)
(Department or establishment.)
, through
for
(Bureau or oflace.)
.
* Said bonds/notes are registered in the name of
obligation secured.)
(Description of
*, and are assigned to
(State form of assignment.)
Title of bonds/notes.
Coupon or
registered.
Total face
amount.
Denomination. Serial number. Interest dates.
'
TMs receipt is executed in duplicate, and the original must be surrendered by the
obligor before the above-described bonds or notes deposited are returned to him. This
receipt is not assignable.
{Signature and official title of Bond-Approving Officer.)
* This information to be furnished only in case of registered bonds/notes.
FORM
B.
RECEIPT OF DEPOSITORY FOR UNITED STATES BONDS OR NOTES DEPOSITED BY BONDAPPROVING OFFICER.
(City.)
(State.)
The undersigned hereby acknowledges receipt from
(Date.)
, of
(Name and official title of bond-approving officer.)
the United States bonds/notes hereinafter described, deposited by
(Name of obligor.)
security in lieu of surety or sureties on
, filed
(Description of penal bond.)
with
for
, as
, through .*
(Department or establishment.)
^
,
(Bureau or offiice.)
*Said bonds/notes are registered in the name of
(Description of obligation secured.)
, and are assigned to
(State form of assignment.)
Title of bonds/notes.
Coupon or
registered.
Total face
amount.
Denomination. Serial number. Interest dates.
.
,
The above-described bonds/notes will be returned only to or on the written order
of said bond-approving officer or his successor in office, upon presentation and surrender of the original of this receipt. This receipt is executed in duplicate and is
not assignable.
{Signature of Depository.)
* This information to be furnished only in case of registered bonds/notes.
SECRETARY OF THE TREASURY.
295
FORM C.
POWER OF ATTORNEY AND AGREEMENT.
(For individual.)
'
Know all men by these presents, that I, the undersigned, of
, do hereby
constitute and appoint
, and his successors in ofiice, as my attorney,
(Name and official title of bond-approving officer.)
for me an^ in my name to collect or to sell, assign, and transfer certain United States
Liberty bonds, Victory notes, or other United States bonds or notes, described as
follows:
such bonds/notes having been deposited b y me, pursuant to authority conferred b y
Section 1329 of the Eevenue Act of 1921, approved November 23, 1921, and subject
to the provisions thereof and of Treasury Department Circular No. 154, dated May
15, 192'2, as security for the faithful performance of any and all of the conditions or
stipulations of a certain obligation entered into by me with the United States, under
date of
, which is hereby made a part hereof, and I agree that, in
case of any default in the performance of any of the conditions and stipulations of
. such undertaking, my said attorney shall have full power to collect said bonds/notes
or any part thereof, or to sell, assign, and transfer said bonds/notes or any part thereof,
without notice, at public or private sale, free from any equity of redemption and
without appraisement or valuation, notice and right to redeem being waived, and
to apply the proceeds of such sale or collection, in whole or in part, to the satisfaction
of any damages, demands, or deficiency arising by reason of such default, as my said
attorney may deem best.
And I hereby for myself, my heirs, executors, administrators, and assigns, ratify
and confirm whatever my said attorney, shall do by virtue of these presents.
In witness whereof, I have hereunto set my hand and seal this
day of
.-..,19..
r- - - . - - -
[SEAL.]
Before me, the undersigned, a notary public within and for the coUnty of
, in the State of
(or the District of Columbia), personally appeared the above-named
and acknowledged the execution of the foregoing power of attorney.
Witness my hand and notarial seal this
day of
, 19..
[Notarial seal.]
'
Notary Public.
FORM
POWER
OF ATTORNEY
D.
AND
AGREEMENT.
(For partnership.)
Know all men by these presents, that we, the undersigned, carrying on business in
partnership together under the firm name and style of
, of
\, do, and each of us does, hereby constitute and appoint
(Name and
, and his successors in office, as the attorney of
official title of bond-approving officer.)
us and each of us, and of our said firm of
, in the name or names
and on behalf of us and our said firm, to collect, or to sell, assign, and transfer certain
United States Liberty bonds, Victory notes, or other United States bonds or notes,
described as follows:
such bonds/notes having been deposited by us, pursuant to authority conferred b y
Section 1329 of the Revenue Act of 1921, approved November' 23, 1921, and subject
to the provisions thereof and of Treasury Department Circular No. 154, dated May 15,
1922, as security for the faithful performance of any and all of the conditions or stipulations of a certain obligation entered into by us with the United States, under date
of
, which is hereby made a part hereof, and we agree that, in case
of any default in the performance of any of the conditions and stipulations of such
undertaking, our. said attorney shall have full power to collect said bonds/notes or
any part thereof, or to sell, assign, and transfer said bonds/notes or any part thereof
without notice, at public or private sale, fi'ee from any equity of redemption and
296
REPORT ON THE FINANCES;
without appraisement or valuation, notice and right to redeem being waived, and to
apply the'proceeds of such sale or collection, in whole or in part, to the satisfaction of
any damages, demands, or deficiency arising by reason of such default, as our said
attorney may deem best.
And we hereby for ourselves, our heirs, executors, administrators, and assigns,
ratify and confirm whatever our said attorney shall do by virtue of these presents.
In witness whereof, we have hereunto set our hands and seals this
day of
,19.. '
[SEAL.]
[SEAL.]
....•
Before me, the undersigned, a notary public within and for the county of
,
in the State of
(or the District of Columbia), personally appeared the
above-named
, partners doing business under the firm name
and style of
, and acknowledged the execution of the foregoing
power of attorney.
Witness my hand and notarial seal this ..'
day of
, 19..
[Notarial seal.]
Notary Public.
FORM E .
POWER OF ATTORNEY AND AGREEMENT.
(For corporation.)
Know all men by these presents, that
, a corporation duly incorporated
under the laws of the State of
, and having its principal ofiice in the city
of
, State of
, in pursuance of a resolution of the board of directors
of said corporation, passed on the
day of
, 19.., a duly certified
copy of which resolution is hereto attached, does hereby constitute and appoint
.^
, and his successors in ofiice, as attorney
(Name and official title of bond-approving officer.)
for said corporation, for and in the name of said corporation to collect or to sell, assign,
and transfer certain United States Liberty bonds," Victory notes, or other United
States bonds or notes, described as follows:
such bonds/notes having been deposited by it, pursuant to authority conferred by
Section 1329 of the Revenue Actof 1921, approved November 23,1921, and subject to
the provisions thereof and of Treasury Department Circular No. 154, dated May 15,1922,
as security for the faithful performance of any and all of the conditions or stipulations
of a certain obligation entered into by it with the United States, under date of
,
which is hereby made a part hereof, and the undersigned agrees that, in case of any
default in the performance of any of the conditions and stipulations of such undertaking, its said attorney shall have full power to collect said bonds/notes or any
part thereof, or to sell, assign, and transfer said bonds/notes or any part thereof without notice, at public or private sale, free from any equity of redemption and without
appraisement or valuation, notice and right to redeem being waived, and to apply the
proceeds of such sale or collection, in whole or in part, to the ,satisfaction of any damages, demands, or deficiency arising by reason of such default, as its said attorney may
deem best.
And said corporation hereby for itself, its successors and assigns, ratifies and confirms whatever its said attorney shall do by virtue^^of these presents.
In witness whereof, the
, the corporation hereinabove named, by
, duly authorized to act in the premises, has executed thia
(Name and title of officer.)
instrument and caused the seal of the corporation to be hereto affixed this
day of
, 19..
'[Corporate seal.]
^
,
By
Before me, the undersigned, a notary public, avithin and for the county of
in the State of
(or the District of Columbia), personally appeared
( Name and
.:
and for and in behalf of said
, corporation, acknowledged
title of officer.)
the execution of the foregoing power of attorney.
Witness my hand and notarial seal this
day of
[Notarial seal.]
, 19..
Notary Public.
297
SECRETARY OF THE TREASURY.
.
'
FORM
F.
FORM OF P E N A L BOND FOR EXECUTION BY INDIVIDUALS, PARTNERSHIPS, OR CORPORAT I O N S W H E R E U N I T E D S T A T E S B O N D S O R N O T E S A R E ACCEPTED AS S E C U R I T Y I N L I E U
OF SURETY OR S U R E T I E S .
Know all men by these presents, that
, of the city of
, and
State of
, as obligor,
held and firmly bound unto the United States
of America, in the penal sum of
dollars (S
), lawful money of the
United States, for the payment of which sum; well and truly to be made to the United
States, without relief from valuation or appraisement laws,..:
bind,
,
heirs, executors, administrators, successors, and assigns firmly- by these
presents.
The condition of the above obligation is such that
(Insert conditions and stipulations appropriate to the penal bond.)
The above-bounden obligor, in order the more fully to secure the United States
in the payment of the aforementioned sum, hereby pledges as. security therefor
bonds/notes of the United States in the principal sum of
dollars
($
), which said bonds/notes are numbered serially and are in the denominations ahd amounts, and are otherwise more particularly described as follows:
^
/which said bonds/notes have this day been deposited with
-
>
(Name and official title of bond-approving officer.)
and his receipt taken therefor.
Contemporaneously herewith the undersigned has also executed and delivered a
power of attorney and agreement in favor of
,
(Name and official title of bond-approving officer.)
authorizing and empowering said officer as such attorney to collect or sell the above^
described bonds/notes so deposited, or any part thereof, in case of any default in the
performance of any of the above-named conditions or stipulations.
In witness whereof, this bond has been signed, sealed, and delivered by the abovenamed obligor, this
day of
, 19..
'.
[SEAL.]
[SEAL.]
Signed, sealed, and delivered in the presence of:
FORM G.
.
RECEIPT B Y OBLIGOR ON RETURN
OF BONDS OR
(City.)
NOTES.
(State.)
(Date.)
The undersigned hereby acknowledges receipt of the United States bonds/notes
hereinafter described, deposited with
as security
(Name and official title of bond-approving officer.)
in lieu of surety or sureties on
filed
with
(Description of penal bond.)
through
, ior
(Bureau or office.)
(Department or establishment.)
,
^
(Description of obligation secured.)
*Said bonds/notes are registered in the name of
are assigned to
. Title of bonds/notes.
Coupon or
registered.
and
(state form of assignment.)
Total face
Denomination. Serial number. Interest dates.
amount.
This receipt is executed in duplicate.
{Signature of Obligor.)
•This information to be furnished only in case of registered bonds/notes.
298
REPORT ON THE FINANCES.
' EXHIBIT
81.
[Department Circular No. 230. ChiefClerk.]
LAWS AND R E G U L A T I O N S GOVERNING THE RECOGNITION OP
ATTORNEYS, AGENTS AND OTHER PERSONS REPRESENTING
CLAIMANTS AND OTHERS BEFORE THE TREASURY DEPARTM E N T A N D OFFICES T H E R E O F .
TREASURY DEPARTMENT,
O F F I C E OF THE SECRETARY,
Washington, April 25, 1922.
The following statutes relate to the recognition of attorneys,
agents and other persons representing claimants and others before
the Treasury Department and ofl&ces thereof:
That the Secretary of the Treas'ory may prescribe rules and regulations governing
the recognition of agents, attorneys, and other persons representing claimants before
his Department, and may require of such persons, agents and attorneys, before being
recognized as representatives of claimants, that they shall show that they are of good
character and in ^ood repute, possessed of the necessary qualifications to enable them
to render such claimants valuable service, and otherwise competent to advise and assist ^
such claimants in the presentation of their cases. And such Secretary may after
due notice and opportunity for hearing suspend, and disbar from further practice
before his Department any such person, agent, or attorney shown to be' incompetent,
disreputable, or who refuses to comply with the said rules and regulations, or who shall
with intent to defraud, in any manner willfully and knowingly deceive, mislead,
or threaten any claimant or prospective claimant, by word, circular, letter, or by
advertisement. (Act of July 7, 1884, 23 Stat., 258.)
Whoever, being an officer of the United States, or a person holding any place of trust
or profit, or discharging any official function under, or in connection with, any Executive Department of the Government of the United States, or under the Senate or House •
of Representatives of the United States, shall act as an agent or attorney for prosecuting any claim against the United States, or in any manner, or by any means, otherwise than in discharge of his proper official duties, shall aid or assist in the prosecution
or support of any such claim, or receive any gratuity, or any share of or interest in any
claim from any claimant against the United States, with intent to aid or assist, or in
^ consideration of having aided or assisted, in the prosecution of such claim, shall be
fined not more than five thousand dollars, or imprisoned not more than one year, or
both. (Act of March 4, 1909, sec. 109, 35 Stat., 1107.)
It shall not be lawful for any person appointed after the first day of June, one thousand eight hundred and seventy-two, as an officer, clerk, or employ^ in any of the
Departments,,to act as counsel, attorney, or agent for prosecuting any claim against
the United States which was pending in either of said Departments while he was
such officer, clerk,,or employe, nor in any manner, nor by any means, to aid in the
prosecution of any such claim, within two years next after he shall have ceased to be
such officer, clerk, or employ^. (Sec. 190, Revised Statutes.)
That it shall be unlawful for any person who, as a commissioned officer of the Army,
or officer or employee of the United States, has at any time since April 6, 1917, been
employed in any Bureau of the Government and in such employment been engaged
on behalf of the United States in procuring or assisting to procure supphes for the
MiUtary Establishment, or who has been engaged in the settlement or adjustment of
contracts or agreements for the procurement of supplies for the Military Establishment,
within two years next after his discharge or other separation from the service of the
Government, to solicit employment in the presentation or to aid or assist for compensation in the prosecution of claims against the United States arising out of any contracts or agreements for the procurement of supplies for said Bureau, whichwere
pending or entered into while the said officer or employee was associated therewith.
A violation of this provision of this chapter shall be punished by a fine of not more
than .*F10,000 or imprisonment for not more than one year, or both. (Act of July 11,
1919, 41 Stat., 131.)
That section five hundred and fifty-eight of the Code of Law for the District of
Columbia, relating to notaries public, be amended by adding at the end of said section
the following: ^^Provided, That the appointment of any person as such notary public,
or the acceptance of his commission as such, or the performance of the duties therei Effective April 25, 1922. This circular supersedes Treasury Department Circular No- 230, dated
February 15,1921, as amended June 7,1921, July 1,1921, and December 23,1921.
SECRETARY OF THE TREASURY.
299
under, shall not disqualify or prevent such person from representing clients before
any of the Departments of the United States Government in the District of Columbia
or elsewhere, provided such person so appointed as a notary public who appears to
practice or represent clients before any such Department is not otherwise engaged in
Goyernment employ, and shall be admitted by the heads of such Departments to practice therein in accordance mth the rules and regulations prescribed for other persons
or attorneys who are admitted to practice therein: And provided further, That no
notary public shall be authorized to take acknowledgments, administer oaths, certify
papers, or perform any official acts in connection with matters in which he is eraployed
as counsel, attorney, or agent or in which he may be in any way interested before any
of the Departments aforesaid." (Act of June "29, 1906, 34 Stat., 622. Held by 26
Opinions of Attorney General, 236, to apply to all notaries who may practice before
the Departments.)
^,
The head of each Department is authorized to prescribe regulations, not inconsistent
with law, for the government of his Department, the conduct of its officers and clerks,
the distribution and performance of its business, and the custody, use, and preservation of the records, papers, and property appertaining to it. (Sec. 161, Revised
Statutes.)
Pursuant to the authority contained in the above-quoted statutory
provisions, the follomng rules and regulations are prescribed:
1. Committee on Enrollment and Disbarment.—(a) A cominittee on
enrollment and disbarment is hereby created, consisting of the Chief
Clerk of the Treasury Department, who shall be a member ex officio,
and six other members, one of whom shall be detailed from the
office of the Secretary of the Treasury and shall act as chairman, three
from the ofiice of the Commissioner of Internal Revenue, and one
each from the office of the Solicitor of the Treasury and the Division
of Customs. The Chief Clerk of the Treasury Department shall have
custody of all papers, records, rolls, etc., belonging to the committee,
and shall, in the absence of the designated chairman, act as chairman.
The members of the committee shall serve for the calendar year and
shall perform the duties herein prescribed in addition to their other
duties. The cominittee shall meet regularly on the first Tuesday of
each month, if a business day, and shall meet specially on other days
at the call of the chairman. Four members shaU constitute a
quorum.
(6) The committee shall receive and consider applications to be
recognized as attorney,' agent or other representative before the
Treasury Department or ofl&ces thereof; receive-complaints against
those enrolled; conduct hearings, make inquiries, perform other duties as prescribed herein, and do all things necessary in the matter of
proceedings for the enrollment, discipline, suspension or disbarment
of attorneys, agents or other representatives, pursuant to these regulations; and it shall submit its recommendations therein to the
Secretary of the Treasury for approval.
2. Applications for enrollment.—^Applicants for enrollment pursuant to these regulations shall submit to the Secretary of the Treas- <
ury an application, properly executed, on Form 23 attached hereto.
Applications in any other form will not be considered. The statements contained in the application must be verified by the applicant.
The applicant must also take the oath of allegiance, and to support
the Constitution, of the United States as required by section 3478,
Revised Statutes. A person who can not take the oath of allegiance,
and to support the Constitution of the United States, can not be
enrolled. Members of the bar of a court of record will apply for
enrollment as attorneys; all others will appl^r for enrollment as
agents. The Secretary of the Treasury may in any case require
300
REPORT ON THE FINANCES.
other and further evidence of qualification. Applicants will be
notified of the approval or disapproval of their applications. All
applications for enrollment must be individual, and individuals who
practice as partners should apply for enrollment as individuals and
not in the partnership name. An individual who has been enrolled
may, however, represent claimants and others before the Treasury
Department in the name of a partnership of which he is a member or
witn which he is otherwise regularly connected. Except as hereinafter provided in paragraph 3, a corporation can not be enrolled and
attorneys or agents will not be permitted to practice before the
Treasury Department for account of a corporation which represents
claimants and others in the prosecution of business before the Treasury Department. Persons applying for enrollment who propose to
act for such a corporation in the prosecution of claims and other
business before the Treasury Department, will be subject to rejection,
and enrolled attorneys or agents who act for a corporation in representing claimants and others in the prosecution of claims and other
business will b'e subject to suspension from practice, as to such claims
or business.
3. Customhouse brolcers.—{a) The act of June 10, 1910 (36 Stat.,
464, T. D. 30789), proyides in part that persons, copartnerships, associations, joint-stock associations, and corporations may be licensed
as customhouse brokers by the collector or chief officer of customs
at any port of entry or delivery to transact business as such customhouse broker in the collection district in which such license is issued.
Customhouse brokers so licensed require no further enrollment under
these regulations for the trarisaction of business within their respective collection districts, but for the representation of a claimant
before the Treasury Department in the city of Washington application for enrollment as attorney or agent must be made in conformity with the requirements of the preceding paragraph, and
otherwise in accordance with these regulations, except that if a
customhouse broker, so licensed in a collection district, is a copartnership, association, joint-stock association, or corporation, its claims
or other business may be prosecuted in its name before the department in the city of Washington by an accredited member or representative, who must, however, be first duly enrolled in accordance
herewith.
(Jb) The provisions of sections (&) and (c) of paragraph 6 hereof
shall apply to customhouse brokers only as to the application to
themselves of designations which might imply official capacity or
connection, and as to solicitation of claims or business before the
Treasury Department and suggestion of previous connection with
the Treasury Department or acquaintance with its officers or
employees.
4. Restriction of right to he heard to parties and enroUed attorneys
and agents.—(a) The committee on enrollment and disbarment shall
maintain in the office of the Chief Clerk, Treasurv Department, a
roll of attorneys and agents entitled to practice beiore the Treasury
Department. I t shall likewise maintain lists of those whose applications for enrollment have been rejected and those who have been
suspended or disbarred. The Chief Clerk shall furnish copies of said
roll and lists, with such additions thereto or subtractions therefrom
as may be made from time to time, to the several bureaus, offices
SECRETARY OF THE TREASURY.
301
and divisions of the Treasury Department, and upon request may
furnish information as to whether or not any person is enrolled
as an attorney or agent before the Treasury Department.
(6) All bureaus^ offices and divisions of the Treasury Department
are hereby prohibited ffom recognizing or dealing with anyone
appearing as attorney or agent unless the name of such attorney
or agent appears upon the list of those entitled to practice before
the Treasury Department, provided, however, that the head of
any bureau, office or division may, in his discretion, temporarily
recognize such representative pending actidn upon his application
for enrollment, provided his name does not appear on the list of
those whose application for enrollment have been rejected or on
the list of those who have been suspended or disbarred. I t shall
be the duty of the several bureaus, offices and divisions of the Treasury Department to ascertain in each case whether the name of
one appearing before them in a representative capacity appears
on the roll of those entitled to practice, whether such representative
has been suspended or disbarred, and whether he is ineligible under
section (c) of this paragraph or under section 190 of the Revised
Statutes. Nothing herein contained shall preclude individual parties or members of firms, or officers of corporations, or authorized
employees of firms or corporations, from appearing, upon proper
identification, as representatives of their own interests or of their
respective firms or corporations in any matter before the department
in which such person, firm or corporation is concerned as a principal;
but attorneys, counsel, solicitors, accountants and other agents for
such persons, firms or corporations must be enrolled.
(c) No attorney or agent shall be permitted to appear in a representative capacity before the Treasury Department, or any of the
bureaus, offices, units, divisions, subdivisions or other agencies
thereof, in regard to any claim, application for reaudit, refund, abatement or reduction in tax assessed, or any other matter, to which he
gave actual personal consideration, or as to the facts of which he had
actual personal knowledge, while in the service of the Treasury
Department.
The foregoing regulation is in addition to the. inhibition contained
in section 190 of the Revised Statutes of the United States, and does
not authorize the appearance of an attorney or agent in the prosecution of any claim that would be prohibited by that section.
5. Suspension and disbarment proceedings.—{a) If any officer or
employee of the Treasury Department, whether in the city of Washington or elsewhere, has reason to believe, or if the complaint is made
to him, that an enrolled attorney or agent has violated any provision
of the laws and regulations governing practice before the Treasury
Department or otherwise engaged in improper practice, he shall
promptly make written report thereof througn the proper channels
to the committee on enrollment and disbarment. The committee
may, on the basis of any such complaint, upon its own motion, or
otherwise upon reasonable cause, institute proceedings for suspension
or disbarment against any enrolled attorney or agent. Notice
thereof, signed by the Secretary or Undersecretary of the Treasury,
shall be sent by mail to such attorney or agent at the address under
which he is enrolled, and such notice shall state the charge or charges
made, and give the place and time of hearing, which shall be not less
302
REPORT ON THE FINANCES.
than thirty nor more than forty days from the date of mailing the
notice. The respondent may file with the committee an answer in
duplicate, which shall be verified, at least five full days before the
time of the hearing, and the complainant may, in the discretion of
the committee, be furnished with the duplicate thereof. The committee may, in its discretion, extend the time for answer, or postpone
the date of hearing; or adjourn any hearing from time to time as may
be necessary. An enrolled attorney or agent against whom proceedings for suspension or disbarment have been instituted as herein provided may, subject to the approval of the Secretary of the Treasury,
be suspended for the time being from practice before the Treasury
Department, pending the conclusion of the proceedings.
(b) The committee shall conduct hearings according to such rules
of procedure as it shall determine, and may receive evidence in such
form as it may deem proper. The respondent may be represented by
counsel. The testimony of witnesses may, in the discretion of the
committee, be required to be under oath, and may be stenographically
reported and transcribed. Depositions for use at a hearing may,
with the approval of the committee, be taken by either party upon
oral or written interrogatories before any officer duly authorized to
administer an oath for general purposes, upon ten days^ written
notice if the deposition is to be taken within the District of Colum-'
bia, and upon twenty days' written notice if it is to be taken elsewhere. When a deposition is taken upon written interrogatories,
Sihj cross-examination shall be upon written interrogatories. Copies
of such ^vritten interrogatories shall be.served with the notice, and
copies of any written cross-interrogatories shall be mailed to the
opposing party or his counsel at least ten days before the time of
taking the deposition.
(c) The committee shall, promptly after the conclusion of the
hearing, or, if the respondent does not appear in person for the hearing, promptly after the date set therefor, submit to the Secretary of
the Treasury a copy of the notice of hearing, the complaint, answer
(if any), the record of the hearing (if any), and any written findings
of fact by a majority of the committee, together with a recommendation either that the charges be dismissed, or that the respondent be
reprimanded, suspended for a given period of time, or disbarred.
The findings and recommendation shall be signed by all members of
the committee agreeing thereto. Members of the committee dissenting therefrom shall submit statements of their reasons therefor.
If any members of the committee were not present at the hearing the
fact shall be stated.
(d) Upon the suspension or disbarment of an attorney or agent,
notice thereof shall be given by the committee to the heads of all
bureaus, offices and divisions of the Treasury Department and to
the other branches of the Government, and, unless duly reinstated,
such person shall not thereafter be recognized as an attorney or agent
in any claim or other matter before the Treasury Department or any
office thereof.
6. Causes for rejection, suspension or disbarment.—{a) The Secretary of the Treasury may, as herein provided, suspend or disbar any
enrolled attorney or agent shown to be incompetent or disreputable,
or who refuses to comply with these rules' and regulations, or who
shall with intent to defraud, in any manner willfully and knowingly
SECRETARY OF THE TREASURY.
303
deceive, mislead, or threaten any claimant or prospective claimant,
by word, circular or letter, or by advertisement. I t shall be the duty
of every attorney and agent to use the utmost diligence in furnishing
evidence Tequired in matters presented to the Treasury Department,
and the use of any means whereby the final settlement of a claim or
other business pending before the Treasury Department is unjustifiably delayed^may be sufficient cause for suspension or disbarment.
If any enrolled attorne}^ or agent shall knowingly employ as correspondent or subagent in any matter pending before the Treasury
Department a person who is at the time denied enrollment, or sus-pended or disbarred from practice before the department, such
attorney or agent himself may be suspended or disbarred.
(&) Advertising h j enrolled attorneys or agents which describes
their capacity or ability to render service as enrolled attorneys or
agents is forbidden. Letterheads, business cards, and insertions in
directories, newspapers, trade journals, or other publications should
set forth only the name and address of the attorney or agent and a
brief description of his practice. The description should not do more
than state the nature of the attorney's or agent's business, that is to
say, whether he practices as an attorney, accountant or agent, and,
if desired, any special field of service or practice covered. The use
h j attorneys, agents or others of adjectives or other terms which
might imply official capacity or connection with the Government or
any of its departments, is specifically forbidden.
(c) The solicitation of claims or other business as attorney or agent
for others before the Treasury Department by circulars, advertisements or other means, including personal letters, communications or
interviews not warranted by previous business or personal relations
with the persons addressed, is forbidden. Advertising or solicitation,
which mcuces any suggestion of previous connection with the Treasury
Department or acquaintance with its officials or employees, or any
reference to thefact of enrollment, is specifically forbidden.
(d) Statements or implications to the effect that an attorney or
agent is in position by reason of past experience, past official connection, or personal association with the Treasury Department or any
officials or employees thereof, directly or indirectly to influence the,
disposition of business in the Treasury Department, and statements,
or implications to the effect that the agent or attorney is able to
obtain information or consideration that is not available to the public
in regard to such business, are forbidden.
(e) While contingent fees may be proper in some cases before the
department, they are not generally looked upon with favor and may
be made the ground of suspension or disbarment. Both their reasonableness in view of the services rendered and all the attendant circumstances are a proper subject of inquiry by the department. Th%'
Commissioner of Internal Revenue or the head of any other Treasury
bureau or division of the Secretary's office may at any stage of a
pending proceeding require an attorney or agent to make full
disclosure as to what inducements, if any, were held out by him
to procure his employment and whether the business is being
handled on a contingent basis, and, if so, the arrangement regarding compensation.
(/) Violation of any of the foregoing regulations is declared cause for
suspension or disbarment of any attorney or agent enrolled to prac-
304
>
REPORT ON THE FINANCES.
tice before the Treasury Department, while violation thereof by any
person applying for enrollment as attorney or agent will be cause for
rejection of his application.
>
{g) Upon notification that an attorney or agent enrolled in the
Treasury Department has been disbarred from practice before some
other branch of the Government, the committee shall forthwith send
to such attorney or agent, in the same manner as prescribed for
notice of hearing, an order signed by the Secretary of the Treasury
to show cause within thirty days why he should not be disbarred
from practice before the Treasury Department; and thereafter the
^ committee shall proceed in such case in the same manner as if a
notice of hearing had been sent.
(h) The above enumeration of causes for rejection, disbarment or
suspension shall not exclude other causes which the Secretary may
reasonably deem sufficient in any case.
7. Authority to prosecute claims; delivery of checlcs, drafts and
warrants.—(a) A power of attorney from the principal in proper form
may be required of attorneys or agents by heads of bureaus, offices
and divisions, in any case. In the prosecution of claims involving payments to be made by the United States, proper powers of attorney shall
always be filed hefore an attorney or agent is recognized. No power of
attorney shall be recognized which is filed after settlement made by
the accounting officers, even though the settlement certificate may
not yet have issued, unless such power of attorney recites that the
principal is fully cognizant of such settlement and of the balance
found due.
(b) I n all cases originally filed in the Treasury Department and
audited and allowed by the accounting officers, payable from appropriations thereafter to be made by Congress, the drafts, warrants or
checks issued for the proceeds of such claims shall be made to the
order of the claimant, and may be delivered to the attorney or agent
legally authorized to prosecute the same, upon his filing in the
department, after the allowance of the claim, the ascertainment of
the amount due, and its submission to Congress for an appropriation,
written authority executed in proper legal form for delivery of such
draft, warrant or check. The authority so filed shall describe the
claim by the number of certificate of settlement, the amount allowed,
the title of appropriation from which to be paid, the date when submitted to Congress, and the number of the executive document in
which it is contained. Drafts, warrants or checks issued for the
proceeds of other like cases audited and allowed by the accounting
officers ,but which are to be paid from appropriations available at
the time of allowance shall also be made to the order of the claimant
and may be delivered to the attorney or agent ffiing written authority,
executed in proper legal form, to receive them. The Secretary of the
Treasury reserves the right, however, in any case to send any draft,
warrant or check to the claimant direct. (See also paragraph 9
, hereof.)
(c) Drafts, warrants or checks issued in payment of amounts
allowed by Congress in favor of corporations and individuals and
appropriated for in private or special acts, and for the payment of
all other claims presented directly to Congress and prosecuted before
its committees, shall be made to the order of claimants and delivered
to them in person or mailed to their actual post-office addresses.
SECRETARY OF THE TREASURY.
305
{d) Drafts, warrants or checks issued in payment of judgments
rendered by the Court of Claims, United States courts, or other courts
shall be made to the order of the judgment creditor and delivered to
or sent in care of the attorney certified by the court to be the attorney
of record upon his filing in the department written authority, executed
in proper legal form, after the date of the rendition of the judgment,
for such disposition of such draft, warrant or check.
{e) When judgments of the Court of Claims, United States courts,
or other courts are paid by the United States, a notice of such payment, giving number, class, and date of the draft, warrant or check,
and amount paid, will be sent by the Treasury Department to the
clerk of the court in which the judgment was entered in order that
payment may be entered on the docket of the court.
8. Substitution of attorneys or agents and revocation of authority.—
(a) Substitution of attorneys or agents may be effected only on the
written consent of the attorney or agent of record, his principal, and
the attorney or agent whom it is desired to substitute, and in all cases
only with the assent of the head of the bureau, office or division con-,
cerned; provided that where the power of attorney under which an
attorney or agent of record is acting expressly confers the power of
substitution, such attorney or agent, if in good standing before the
department, may, by a duly executed instrument, substitute another
in nis stead, such other, however, to be recognized as the attorney or
agent only with the assent of the head of the bureau, office or division
concerned.
(b) If a firm dissolve, or those associated as attorneys or agents by
virtue of a power of attorney contest the right of either to receive a
draft, warrant or check, the principal only shall thereafter be recognized, unless the members or survivors of such firm, or the associates
in such power of attorney, file a proper agreement showing which of
such members, survivors or associates may continue to prosecute the
matter and may receive a draft, warrant or check; and in no case shall
a final settlement of the matter or action toward the transmission of
a draft, warrant or check to the principal be delayed more than sixty
days by reason of the failure to file such agreement.
(c) The revocation by a principal or his legal representatives of
authority to prosecute a matter will not be effective, so far as the
Treasury Department is concerned, without the assent of the head of
the bureau, office or division before which the matter is pending.
Where a matter has been suspended pending the furnishing of evidence
for which a call has been made on an attorney or agent, failure to take
action thereon within three months from the date of suspension may
be deemed by the administrative officer before whom the case is pending cause for revocation of the authority of such attorney or agent
without further notice to him.
9. In the settlement of claims of officers, soldiers, sailors- and
marines, or their representatives, and all other like claims for pay and
allowances within the jurisdiction of the General Accounting Office,
the draft, warrant or check for the full amount found due shall be delivered to the payee in person or sent to his bona fide post-office
address (residence or place of business) in accordance with the provisions of the act of June 6, 1900 (31 Stat., 637).
10. This circular supersedes the regulations promulgated by Treasury Department Circular No. 230 of February 15, 1921, as amended
14263—FI 1922
20
306
'
REPORT ON THE FINANCES.
June 7, July 1, and December 23, 1921, relating to the recognition of
attorneys, agents and others.
11. These regulations shall apply to attorneys, agents and others
representing claimants and others before the Treasury Department in
the city of Washington or elsewhere, with the exception as to customhouse brokers set forth in paragraph 3, and shall be effective from and
after the twenty-fifth day of April, 1922. This circular shall apply to
all unsettled matters then pending in this departnient, or which may
thereafter be presented or referred to the department or offices thereof
for adjudication, and shall be applicable to all thpse now enrolled to
practice before the Treasury Department as attorney or agent, provided that nothing herein contained shall be coristrued to abrogate
any rules or orders of the General Accounting Office relating to the
fees of attorneys, agents or others, or to require those now enrolled
again to apply to be enrolled.
12. The Secretary of the Treasury may withdraw or amend at any
time or from time to time all or any of the foregoing rules and regulations, with or without previous notice, and may make such special
orders as he may deem proper in any case.
A. W.
MELLON,
Secretary of the Treasury.
TREASURY DEPARTMENT,
CHIEF CLERK.
Form 23.
(Revised April 25,1922.)
APPLICATION FOR ADMISSION TO PRACTICE BEFORE THE TIIE ASURY DEPARTMENT.
The Honorable
i
THE SECRETARY OF THE TREASURY.
SIR:
I,
residing at
with my office at
*
hereby apply for enrollment to be recognized as.
—
\
(Attorney or agent.)
to represent others before the Treasury Department.
1. I am a citizen of the United States (if naturalized, state where and when: Place
Date
), and the date of my birth is
V
\
2. 1 am a member of the fear of
and attach hereto a certificate to that effect from said court.
I am now in active practice and in good standing in said court.
3.^ I am
engaged in business under the name of
(State nature of business.)
.
and familiar with the laws, rules and
regulations of the Treasury Department. I am qualified to act as the representative
of others and render them valuable service, particularly in matters relating to
because of my education, training and
business experience, which have been as follows: (State in chronological order,
giving dates.)
Preliminary education:
Dates.
Professional or technical education:
1 Paragraph 3 should be filled in only by persons applying for enrollment as agent.
307
SECRETARY OF T H E TREASURY.
Practical business experience:
Professional or technical experience:
Particular qualifications rendering applicant competent to advise and assist claimants in presentation of their cases:
4. I have never been rejected, suspended or disbarred from appearing as attorney
or agent, or in any other representative capacity, before any branch of the F.ederal
or any State Government or municipality, or any court. (State details of any exception.)
5. I have never been an officer or employee of the United States.
I have been an officer or employee of the United States as follows: (State office or
employment, with dates of appointment and separation.)
6. I have read and noted Treasury Department Circular No. 230, dated April 25,
1922, and particularly paragraph 6 thereof.
7. I have made no previous^application to be recognized as attorney or agent before!
the Treasury Department. (State details of any exception.)
8.^1,
, do solemnly swear (or affirm)
that the statements contained in the foregoing application are true and correct; that
I will support and defend the Constitution of the United States against all enemies,
foreign and domestic; that I will bear true faith and allegiance to the same; that I
take this obligation freely without any mental reservation or purpose of evasion; and
that if authorized to represent others before the Treasury Department I will at all
times conduct myself strictly in compliance with the law:s and regulations governing
practice before the Department. So help me God.
(Name)
(Address)
Subscribed and sworn to before me this
day of
, 192..
(Signature of officer)
(Official title)
[Impress seal here.]
^
CERTIFICATES OF CHARACTER.'^
I hereby certify that I have known the
,within-named
since
;
I hereby certify that I have known the
within-named
since
;
(Year.)
(Year.)
that during all that time I have known
him to be of good moral character and
worthy of the trust and confidence of
claimants and of the Treasury Department.
(Name and address of person not related
to applicant.)
(hate.)
that during all that time I have known
him to be of good moral character and
worthy of the trust and confidence oi
claimants and of the Treasury Department.
(Name and address of person not related .
to applicant.)
(Date.)
2 NOTE.—This oath may be taken before any justice of the peace, notary public, or other person who is
legaUy authorized to administer an oath in the State, Territory or District where the application is executed.
The seal of the officer administering the oath must be affixed, or if he has no seal, his official character must
be duly certified under seal.
8 Leave certificates blank if a member of the bar.
308
REPORT ON TPIE FINANCES.
-
INDORSEMENT.
WASHINGTON,
, 192..
The attached application of
for enrollment to be recognized as
to represent others before the
Treasury Department has been examined, and after consideration it is recommended
that the application be
..-.
, Chairman.
Approved by the Secretary.
(See Schedule No
Committee on Enrollment and Disbarment,
)
Treasury Department.
E X H I B I T 82.
[Department Circular No. 297. Section of Surety Bonds, Division of Appointments.]
KEGULATIONS APPLICABLE TO SUKETY COMPANIES DOING BUSINESS W I T H T H E U N I T E D S T A T E S UNDER THE ACT OF CONGRESS
APPROVED AUGUST 13, 1894, AS AMENDED
CONGRESS OF MARCH 23, 1910.
B Y T H E ACT OF
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,
Washington, July 5, 1922.
1. The following regulations will govern the issuance by the Secretary of the Treasury of certificates of authority to bonding companies to do business with the United States as sureties on ^recognizances, stipulations, bonds, and undertakings, hereinafter sometimes
called obligations, under the provisions of the Act of Congress of
August 13, 1894, as amended by the Act of Congress of March 23,
1910, and the acceptance of such obligations from such companies so
long as they continue to hold said certificates of authority.
2. Application for certificate of authority.—Every company applying
for such a certificate of authority will be required to submit to the
Secretary of the Treasury an application in writing signed by its
President and Secretary, and accompanied by the following papers: j
(a) A certified copy of its charter or articles of incorporation,
together with the certificate of the Insurance Commissioner, or other
proper officer of the State under whose laws the company was organized, showing that it is fully and legally incorporated and organized
under the laws of said State, and is authorized to transact and is
transacting therein a fidehty and surety business, and the period
during which it has been engaged in the transaction of such business.
(JJ) A copy of its by-laws, certified by the Secretary or Assistant
Secretary of the company, and a certificate of either of such officers
as to the election of its officers and directors.
(c) A list, signed and sworn to by its Secretary or Assistant Secretary, and by its Treasurer or Assistant Treasurer, of the names and
post-office addresses of its stockholders; the number of shares held
by each; the amount paid in on account of capital, and the amount,
if any, paid in as surplus.
{d) A full statement, verified, signed, and sworn to b y its President
and Secretary, in such form as the Secretary of the Treasury may
SECRETARY OF THE TREASURY.
'
309.
prescribe, showing its assets and liabilities and such other information
respecting its business as may be required.
3. ^Issuance of certificates of authorify.—If, from the evidence submitted in the manner and form herein required, the Secretary of "the
Treasury shall be satisfied that such company has authority under
its charter or articles of incorporation to do the business provided for
by the Acts above referred to, and if the Secretary of the Treasury
shall be satisfied from such company^s financial statement and from
any further evidence or information he may require, and from such
examination of the company, at its own expense, as he may cause to
be made, that such company has a capital fully paid up in cash of
not less than $250,000, is solvent and financially and otherwise qualified to do the business provided for in said Acts, and is able to keep
and perform its contracts, he will, subject to the further conditions
herein contained, issue a certificate of authority to such company,
under the seal of the Treasury Department, to qualify as surety on
obligations perinitted or required by the laws of the United States,
to be given with one or more sureties, for a term expiring on the last
day of April next following. A new certificate of authority shall, so
long as the company remains qualified under the law and these
regulations, be issued annually on the first day of May.
4. Deposits.—No such company will be granted authority to do
business under the provisions of the Acts above referred to unless it
shall have and maintain on deposit with the Insurance Commissioner,
or other proper financial officer, of the State in which it is incorporated, or of any other State of the United States, for the protection
of all its policyholders in the United States, legal investments having
a current market value of not less than $100,000.
5. Business.—Such company must engage in the business of fidelity,
insurance and suretyship, whether or not also making contracts of
insurance in one or more of the classes generally known as casualty
risks, but shall not be engaged in any other classes of insurance or any
other business. I t must be the intention of every such company to
engage actively in the execution of fidelity and surety bonds running
to the United States.
6. Regulations.—Every company now or hereafter authorized to do
business under the Acts of Congress above referred to shall be subject
to the following regulations:
7. Investment of capital and assets.—The cash capital and other funds
of every such company must be safely invested in accordance with
the laws of the State in which it is incorporated, and subject to the
following general restrictions:
No part of any of said cash capital, or of any other assets or funds
of any such company shall be invested in or loaned on its own stock.
No part of said cash capital, or of any other assets or funds shall be
loaned unless such loan shall be secured by mortgage on unencumbered improved or productive real estate within the United States,
such loan not to exceed sixty per centum of the current market value
of the mortgaged premises; or by the pledge of bonds or stocks or
other evidences of indebtedness, such loan at no time to be in excess
of ninety per centum of the current market value of the securities
pledged; or by pledge of bonds or other evidences of indebtedness of,
the United States, the market value of which is equal to at least the
amount loaned thereon. No part of the capital of any such company
31,0
REPORT ON THE FINANCES.
shall be or remain invested in or loaned upon any 'security or real
estate subject to any prior lien.
The foregoing general restrictions shall not apply to assets acquired
•as salvage, if they are being liquidated with reasonable promptness.
8. Financial reports.—Every such company will be required to file
with the Secretary of the Treasury, on or before the last day of January of each year, a statement of its financial condition made up as of
the close of the preceding calendar year upon the annual statement
blank adopted by the National Convention of Insurance Commissioners, signed and sworn to by its President and Secretary. On or before
the last day of July of each year every such company will be required
to file with the Secretary of the Treasury a financial statement as of
June 30, on the form required by the National Convention of Insurance Commissioners, signed and sworn to by its President and Secretary, consisting of income and disbursements, assets, liabilities, and
jurat, exhibit of premiums, underwriting and investment exhibits,
Schedule E, Schedule A, part 1, Schedule of Mortgage Loans made
and paid off during the period of statement. Schedule C, part 1,
Schedule D, parts 1 and 2 (excluding interest and dividend items),
Schedule F, salvage assets, and Schedule of Deposits. On or before
the last days of April and October of each year every such company
will be required to file a financial statement with the Secretary of the
Treasury as of the last day of the preceding month, on the form
adopted by the National Conyention of Insurance Commissioners,
signed and sworn to by its President and Secretary, consisting of
income and disbursements, assets, liabilities, aiid jurat, and an underwriting and investment exhibit.
Every such company shall furnish such other exhibits or information, and in such manner as the Secretary of the Treasury may at
any time require.
9. Valuation of assets.—In determining the financial condition of
every such company, its assets and liabilities will be conaputed on
the basis recommended by the^ National Convention of Insurance
Commissioners so far as practicable and consistent with these regulations. Credit will be allowed for reinsurance in all classes of risks,
subject in case of fidelity and surety risks, to the limitations contained in paragraph 12, section ^'a,^' provided that the reinsuring
company is (1) any company authorized by the Secretary of the
Treasury, or (2) any company described in subsections 2 and 3 of
paragraph 12, section '^a^' and authorized under its charter to
reinsure the classes of risks for which credit for reinsurance is claimed
by the ceding company, and provided further, that any such reinsuring company shall meet all other requirements imposed on reinsuring companies by said paragraph 12, section^'a.''
The Secretary of the Treasui:y may in his discretion value the
assets OT other securities of such companies in accordance with the
best information obtainable.
10. Limitation oJ rislc.—Except as herein provided, no company
having authority, under the Acts of Congress above referred to, to
do business with the United States, shall be accepted as sole surety
on any obligation under this Department, which shall execute any
obligation on behalf of any individual, firm, association, or corporation, whether or not the United States is interested as a party thereto,
SECRETARY OF THE TREASURY.
311
the penal sum of which is greater than ten per centum of the paid
up capital and surplus of such company.
11. Two or more companies may be accepted as sureties on any
obligation under this Department, the penal sum of which does not
exceed the limitation herein prescribed of their aggregate.qualifying
ower, as fixed and determined by the Secretary of the Treasury,
n such cases each company shall limit its liability, in terms, upon
the face of the bond, to a definite specified amount, such amount t o
be in all cases, however, within the limitations herein prescribed.
In cases where the law specially requires it, such obligation shall be
executed by the principal and sureties jointly and severally.
12. The limitation herein prescribed shall not apply to any obligation when the liability in excess of the company's qualifying power,
as fixed and determined b}^ the Secretary of the Treasury, is protected as follows:
(a) In respect to obligations running to the United States, by
reinsurance, effected simultaneously with the execution and delivery
of the original obligation, or within forty-five days thereafter, of
such excess with any company holding a certificate of authority from
the Secretary of the Treasury. In respect to obligations not running
to the United States, by reinsurance, effected simultaneously with
the execution and delivery of the original obligation, or within
forty-five days thereafter, of such excess with (1) any company
holding a certificate of authority from the Secretary of the Treasiiry,
(2) with any company organized under the laws of the United States,
or of any State thereof, authorized under its charter to reinsure
fidelity and surety risks, and having a capital stock paid up in cash
of not less than $250,000, or (3) any company of any foreign country
holding a license from any State of the united States to do business
in such State, authorized under its charter and such license to reinsure fidelity and surety risks, and having a deposit capital in this,
country of not less than $250,000 available to air its policyholders
and creditors in the United States; provided, that any such reinsuring company as is described in (2) or (3) shall file with the Secretary
of the Treasury a certified copy of its charter or articles of incorporation, and, if it is a coinpany of a foreign country, also a certified
copy of its license to do business in the State which has granted such
license; and provided further, that any such reinsuring company
shall file on or before the first day of March of each year with the
Secretary of the Treasury such statement as he may require for the
purpose of determining whether it has a capital stock or deposit
capital, as the case may be, in accordance with the foregoing requirements, and whether it is solvent and able to keep and perform its
contracts. No credit, however, will be allowed the ceding company
for reinsurance ceded in excess of ten per centum of the reinsuring
company's capital and surplus.
(b) By the deposit with it in pledge, or by conveyance to it in
trust, for its protection, of property the current market value of
which is at least equal to the liability in excess of the company's
qualifying power.
(c) I n case such obligation was incurred on behalf of or on account
of a fiduciary holding property in a trust capacity, by a joint control
agreement which provides that the whole or a sufficient portion of
the property so held may not be disposed of or pledged in any way
without the consent of the insuring company.
f
312
\
REPORT ON THE FINANCES.
13. I n determining the limitation herein prescribed, the full penalty of the obligation will be regarded as the liability, and no offset
will be allowed on account of any estimate of risk which is less than
such full penalty, except in the following cases:
(a) Appeal bonds; in which case the liability will be regarded as
the amount of the judgment appealed from, plus ten per cent of said
amount to cover interest and costs.
(h) Bonds of executors, administrators, trustees, guardians, and
other fiduciaries, where the penalty of the bond or other obligation
is fixed in excess of the estimated value of the estate; in which cases
the estimated value of the estate, upoii which the penalty of the bond
was fixed, will be regarded as the liability.
(c) Credit will also be allowed for indemnifying agreements executed by sole heirs or beneficiaries of an estate releasing the surety
from liability.
(d) Contract bonds given in excess of the amount of the contract;
in which cases the amount of the contract will be regarded as the
liability.
(e) Bonds for banks or trust companies as principals, conditioned
to repay moneys on deposit, whereby any law or decree of a court,
the amount to be deposited shall be less than the penalty of the
bond; in which cases the maximum amount on deposit at any one
time will be regarded as the liability.
14. Schedules of single rislcs.—During the months, of January,
April, July, and October of each year every company will be required
to report to the Secretary of the Treasury every obligation which it
has assumed during the three months immediately preceding, the
penal sum of which is greater than ten per centum of its paid up capital and surplus, together with a full statement of the facts which
tend to bring it within the provisions of these regulations, on a
form suitable for the purpose.
15. The amount of paid up capital and surplus of any such company shall be determined from the financial and other statements
of such company filed with the Secretary of the Treasury as herein
provided, or by reports of examinations made by the Insurance
Departments of the several States, or by such examination of such
company, at its own expense, as the Secretary of the Treasury may
deem necessary or proper.
16. A statement showing the capital, surplus, and qualifying power
of the various companies authorized under these regulations will be
published semiannually, as of June 30th and December 31st of each
year, such publication to be made as soon as practicable following the
examination of the statements above referred to. If the Secretary
of the Treasury shall make any changes in the annual or semiannual
statement of any company, he shall, before issuing such publication,
give the company due notice thereof.
17. Whenever, in the judgment of the Secretary of the Treasury,
any such company is no longer sufficient security^ he shall revoke
its certificate of authority.
^•
18. The Secretary of the Treasury rnay amend or supplement
these regulations at any time.
19. The foregoing regulations supersede all previous regulations
relating to the same subject.
A. W. MELLON, Secretary.
SECRETARY OF T H E TREASURY.
EXHIBIT
313
83.
[Department Circular No. 283. Chief Clerk.]
ORDER ESTABLISHING CENTRALIZED PURCHASING FOR
TREASURY DEPARTMENT.
^
THE
TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,
Washington, March 28, 1922.
To All Officers ofthe Treasury Department and Others Concerned:
1. There is hereby created and established a Bureau of Supply in
and for the Treasury Department. The officer in charge will be
known as the Director of Supply and will be detailed from a bureau
or division of the Treasury Department.
2. The Bureau of Supply is assigned for administrative purposes
to the Assistant Secretary in charge of foreign loans and miscellaneous.
3. The Bureau of Supply will assume on April 1, 1922, or as soon
thereafter as practicable, all functions relating to the actual purchase
of material and supplies now exercised by offices, divisions,.services,
and bureaus (hereinafter referred to as bureaus) in the Treasury
Department in Washington and in the field, except as hereinafter
provided. The Bureau of Engraving and Printing is not included in
this order, because of existing statutes. These functions will be
taken over gradually, and no bureau in Washington or in the field
shall cease its present purchasing operations until specifically so
instructed.
The Bureau of Supply will take over such storerooms within the
Department as can be efficiently used for common distribution of
supplies.
4. All requisitions for material and supplies will be prepared by
the Consuming Bureaus and must show the appropriation from which
payment is to be made, the necessity of the purchase, and such other
details as may be required by the Bureau of Supply, including^ specifications if necessary.
All requisitions made by Consuming Bureaus to be paid for from
appropriations under their control will be submitted by such bureaus
to the Bureau of Supply.
All other requisitions will be submitted to the Bureau of Supply
through the office having control of the appropriation and must be
approved bv such office.
The head of the office controlling the appropriation from which
•purchases are to be made, or his duly authorized representatives,
will be responsible for the legality and necessity of procurement and,
subject to the approval of the Director of Supply, for the inspection
of material upon delivery. They will prepare vouchers for payment
and certify upon such vouchers that the articles were secur.ed in
accordance with the law, have been received in good condition and
in the quality and quantity specified; that prices charged are just,,
reaigonaWe a-nd in accordance with the order or contract.
The heads^of the Consuming Bureaus will be charged with the duty
of anticipating their requirements so as to permit of orderly and
economical procurement, and yet avoid having public funds tied up
in surplus stocks.
314
REPORT ON THE FINANCES.
They will, when requested, co-ordinate their requirements with
. those of other bureaus and submit them at designated periods to
permit of combined purchase and inspection, interchangeability or
standardization of supplies and limitations in types, grades, and
varieties.
5. The Director of Supply will be responsible for the prompt,
efficient, economical and legal manner of procurement. oAll orders
or contracts for supplies involving an expenditure of $100 or more
will be approved b y the Assistant Secretary in charge of the bureau
concerned, but for supplies involving an expenditure of less than $100,
the order or contract may be approved by the Director of Supply.
Copies of all orders and contracts shall be furnished to the bureaus
concerned.
,
The Director of Supply will conduct all business relations with
contractors in respect to orders and contracts^ with the exception
that inspecting offices may correspond directly with contractors on
matters of inspection only, furnishing copies of such correspondence
to the Director of Supply.
The Director of Supply will be responsible for the inspection of
articles purchased for stock to be delivered at common storerooms
under his supervision in Washington and m a y call upon the Consuming Bureaus for assistance.
"^
6. This order does not supersede or modify any of the provisions
of Department Circular No. 3, dated October 8, 1915, prescribing
regulations for the conduct of the General Supply Committee. The
functions of that Committee will be performed as at present, except
that supervision now exercised by the Chief Clerk will hereafter be
undertaKcn by the Director of Supply.
A. W. MELLON,
Secretary of the Treasury.
EXHIBIT
84.
TREASURY DEPARTMENT,
Washington, June 16, 1922.
ORDER
SUPPLEMENTING
CENTRALIZED
MENT.
CIRCULAR
PURCHASING
N O . 283,
ESTABLISHING
FOR THE TREASURY
DEPART-
To all Officers ofthe Treasury Department and Others Concerned:
Pursuant to and supplementing the provisions of Department
Circular 283 of March 28, 1922, you are hereby notified and directed
as follows:
Upon receipt of notice from the Office of the Secretary, you will
assign for duty in the Bureau of Supply, such clerical and other
personnel under your control as devote any substantial part of their
time to the purchase, handling or distribution of supplies, or, keeping
records pertaining to such work. Should any questioii arise as to
-the personnel to be so transferred, such question shall be referred to
the Office of the Secretary for determination. i
SECRETARY OF THE TREASURY.
315
The pay and status of personnel assigned to duty with the Bureau
of Supply shall not be changed except with the approval of the
Director of that Bureau. Vacancies occurring in the personnel of the
Bureau of Supply shall be filled upon recommendation of the Director.
Except as may be in conflict with existing law, you will transfer to
the Bureau of Supply such of the following as it may select, viz:
storerooms, material, equipment and supplies, including telephone
and motor vehicles now being used within the Department for the
^procurement, storage and distribution of supplies.
An inventory shall be furnished the Bureau of Supply of all material, equipment and supplies, transferred thereto, and receipts therefor will be issued to the transferring office. The inventory submitted
must be on forms approved by the Director.
All records reciuired to complete pending transactions relative to
purchase and distribution of supplies s h ^ l be transferred to the
Bureau of Supply.
Simultaneously with the transfer provided for in paragraph two of
this order all appropriations or parts of appropriations, contingent,
miscellaneous and otherwise, except those for the Bureau of JEngraving and Printing and for distinctive paper for all classes of securities
and currency, made and provided for the purchase of supplies for
the offices, bureaus and divisions of the Treasury Department shall
be transferred in whole or in part and, upon transfer, be available to
the Bureau of Supply, to be used to procure supplies strictly in accordance with the terms and for the purposes set forth in the various
items of appropriations.
The Director of Supply will furnish monthly to all offices concerned statements of balances of such appropriations or parts of
appropriations transferred under the provisions of the preceding paragraph. Copies of purchase orders will be furnished requiring offices
only when supplies purchased are to be delivered direct to user from
contractor.
The Bureau af Supply will make all contracts involving an expenditure of funds allotted to said Bureau.
Payments for purchases of supplies will be made by the disbursing
clerk of the Department, upon vouchers properly approved by the
Director of Supply.
The Director of Supply will determine upon methods and forms
to be used in requisitionmg supplies by bureaus, divisions and field
activities of the Department.
All provisions of Department Circular 283 in conflict with this
order are hereby rescinded.
A. W. MELLON,
Secretary of the Treasury.
316
REPORT ON THE FINANCES.
ExEHBIT 8 5 .
LETTER OF THE SECRETARY OF THE TREASURY APPOINTING
A BUDGET AND IMPROVEMENT COMMITTEE FOR THE TREASURY
DEPARTMENT.
JULY 8,
1922.
Messrs, S. R. JACOBS, Deputy Commissioner of the Public Debt,
{Chairman);
W. N. THOMPSON, Assistant to the Under Secretary;
CHARLES PI. FULLAWAY, Associate Director, Savings Division;
C. Ii. SCHOENEMAN, War Loan Sta/ff;
D. S. BLISS, Bureau of Internal Revenue;
FRANK A. BIRGFELD, Superintendent Accounts Division, Office
of Supervising Architect;
W. O. WOODS, "Bureau of Internal Revenue;
L. C. MARTIN, Chief, Division of Mail and Files.
A. M. W H E E L E R , Public Health Service.
GENTLEMEN: YOU are hereby appointed a Budget and Improvement Committee for the Treasury Department, to be responsible,
under the direction of the Budget Officer and Under Secretary of the
Treasury, for the preparation and examination of Treasury estimates
of appropriations and for the improvement of administrative methods
and procedure within the Treasury Department.
In connection with the estimates of appropriations it is expected
that you will assist the Budget Officer oi the Treasury Department,
designated under Section 214 of the Budget and Accounting Act,
approved June 10, 1921, and that in cooperation with the budget
officer of each bureau or division you will, as a Committee, consider
the estimates for all Treasury Department offices, individually and
as a whole, and make appropriate recommendations for the revision
of the estimates, where that appears to be necessary or desirable in
the interest of the proper administration of. the Department. In
this capacity your Committee will supersede the Assistant Budget
Officers of the Treasury Department who were designated about a
year ago and functioned as a Budget Committee in connection with
the estimates for the fiscal year 1923.
The efficient and economical conduct of the Department's business,
above all other things, is a determining factor in the achievement of
reduced estimates, for in large measure decreased operating costs
must be accomplished through the elimination of duplicated effort
and the application of the most practicable and efficient methods of
work. To this end your Committee is charged with the duty of
studying existing procedure within the various Bureaus and offices
of the Department and of conducting such investigations therein as
may be necessary, with a view to the introduction of improved
methods of work and more effective Departmental organization. I t
is expected that to this end your Committee will hold stated meetings
and feel free to call upon the heads of Treasury offices for such information as may be desired, and that after study and investigation,
appropriate recommendations will be made to the Secretary from
time to time for chahges in methods of work or procedure.
I t is my desire to place the Treasury Department on the most
businesslike basis, and I hope that with the cooperation of all concerned and diligent effort on the part of your Committee an important
advance can be made in this direction.
Very truly yours,
(^-^^^^-^ A . W . M E L L O N ,
Secretajy.
EXHIBIT
86.
Number of employees in the Treasury Department in Washington, by months, from July 31, 1921, to September 30, 1922, inclusive.
1921
1922
B u r e a u or office.
J u l y 31. A u g . 31. S e p t . 30. Oct. 31. N o v . 30. D e c . 31
Secretary's office
Chief.clerk's office
Division of A p p o i n t m e n t s
Division of B o o k k e e p i n g a n d W a r rants
D i v i s i o n of C u s t o m s
Division of Deposits
Division of L o a n s a n d C u r r e n c y . . . . . .
Di^asion of Mail a n d Files
Division of P r i n t i n g a n d Stationer5^
Sa^^ngs Division
Secret Service Division
B o n d roil (misceUaneous)
•United S t a t e s Coast G u a r d
Comptroller of t h e C u r r e n c y
D i s b u r s i n g clerk's office
B u r e a u of Engra^'ing a n d P r i n t i n g . .
Federal F a r m L o a n B u r e a u
Internal Revenue Bureau
Mint Bureau
Public Kealth Bureau
Office o f t h e Register o f t h e T r e a s u r y .
S u p e r \ 4 s i n g A r c h i t e c t ' s Office
OfRce of t h e Treasurer of t h e U n i t e d
States
;..
B u r e a u of W a r R i s k I n s u r a n c e ^
B u r e a u of t h e B u d g e t 2
Office of t h e Commissioner of Acc o m i t s a n d Deposits 3
Office of t h e Commissioner of t h e
Public Debt 4
Division of P u b l i c D e b t , A c c o u n t s
and Audit ^
;
P u b l i c d e b t (misceUaneous)
General S u p p l y C o m m i t t e e &
Total.
34
1,178
35
35
1,189
34
34
1,192
34
34
1,185
33
33
1,168
34
33
1,163
34
34
1,160
34
34
1,164
33
34
1,177
34
34
1,173
34
34
1,160
34
34
1,020
34
28
723
35
24
720
35
25
715
34
90
51
8
2,043
14
45
18
11
33
80
217
17
6,581
62
6,960
13
633
932
246
91
52
8
2,026
13
43
18
11
37
81
222,
17
6,488
62
6,929
13
619
915
262
91
51
8
1,850
13
42
19
11
35
80
227
17
6,459
63
7,016
14
607
901
287
90
52
8
1,841
13
43
17
10
37
80
227
17
6,419
62
6,999
14
600
886
270
90
47
8
1,805
13
41
18
11
38
81
226
17
6,397
62
7,002
13
582
875
87
47
8
1,824
12
42
17
11
.37
81
226
16
6,377
62
7,011
13
583
878
261
87
48
8
1,799
13
42
17
11
42
81
228
17
6,361
66
7,006
13
579
877
256
87
49
8
1,789
13
41
18
11
44
81
228
17
6,345
67
7,068
13
571
875
258
85
49
8
1,779
13
42
17
11
48
81
225
17
6,309
68
7,107
13
571
879
257
85
50
8
1,771
13
42
16
11
49
82
224
17
6,233
68
7,147
13
585
867
255
85
60
8
1,751
13
42
16
11
49
80
225
16
6,118
70
7,192
13
221
940
249
85
51
8
1,724
13
42
16
11
50
81
211
16
6,029
69
7,191
13
225
956
243
80
51
9
1,521
13
42
15
13
48
82
201
19
5,974
67
7,252
13
238
1,134
248
79
51
9
1,531
13
41
15
13
53
79
200
^ 19
5,556
69
7,228
13
277
1,087
236
79
42
9
1,517
13
42
16
13
52
80
198
19
5,634
70
7,208
13
275
1,121
233
1,252
5,025
16
1,239
1,212
1,220
1,179
1,172
1,169
1,108
1,091
1,113
1,101
""'23'
26
27
29
36
"""37"
37
'"'"36
1
1
24
49
142
142
is'
1
1
20,424
20,453
20,375
257
1,215
""23'
1
44
141
20,243
1 Transferred t o t h e U n i t e d S t a t e s V e t e r a n s ' B u r e a u , act of A u g . 9, 1921.
2 Created b y act of J u n e 10, 1921.
3 A c t of J m i e 16,1921, effective J u l y 1,1921.
J a n . 31. F e b . 28. Mar. 31. A p r . 30. M a y 31. J u n e 30. J u l y 31. Aug. 31. Sept, 30.
1,206
1,186
"•'24'
"""25'
""*27'
1
1
1
1
1
1
1
5
5
5
46
46
45
45'
45
60
60
62
142
142
142
141
138
140
139
25
140
139
22
138
141
22
136
19,571
19,303
18,862
18,911
45
140
20,239
142
20,181
20,209
20,212
20,143
19,703
< Transferred from Division of L o a n s a n d Currency, Sept. 1, 1921.
6 Transferred from cliief clerk's office, J u n e 15,1922.
CO
318
REPORT ON THE FINANCES.
E X H I B I T 87.
L E T T E R OF T H E SECRETARY OF T H E T R E A S U R Y R E L A T I V E TO
TAX-EXEMPT SECURITIES, J A N U A R Y 16, 1922.
, JANUARY 16, 1922.
D E A R M R . CHAIRMAN: I am glad, in accordance with the request
of the Committee, to present the Treasury's views as to the issuance
of tax-exempt securities and the latest available information as to the
amounts now outstanding and their effects upon the revenues and the
investment markets. The problem presented by these issues of taxfree securities is of growing importance and I think that it deserves
the most serious attention.
The views of the Treasury on the subject, and its suggestions as to
possible remedies, have already been set forth in my letter to you of
April 30, 1921,1 and in my letter of September 23, 1921,^ to the Chairman of the Committee on Banking and Currency of the House of
Representatives, a copy of which I sent to you with my letter of
September 23, 1921. Copies of these letters are attached for ready
reierence. The^ further views of the Treasury have been indicated
to some extent in my letter of November 4, 1921, to you, and in the
Under Secretary's letter of November 10th to the Chairman of the
Committee on Banking and Currericy, copies of which are enclosed.
Since these letters the President, in his address to Congress on
December 6, 1921, has emphasized the importance of action in the
matter in the following words:
There are a full score of topics concerning which it would be becoming to address
you, and on which I hope to make report at a later time. I have alluded to the things
requiring your earlier attention. However, I can not end this limited address without
a suggested amendment to the organic law.
Many of us belong to that school of thought which is hesitant about altering the fundamental law. I think our tax problems, the tendency of wealth to seek nontaLxable
investment, and the menacing increase ofpublic debt, Federal, State, and municipal—
all justify a proposal to change the Constitution so as to end the issue of nontaxable
bonds. No action can change the status of the many billions outstanding, but we
can guard against future encouragement of capital's paralysis, while a halt in the
growth of public indebtedness would be beneficial throughout our whole land.
Such a change in the Constitution must be thoroughly considered before submission.
There ought to be known what influence it will have on the inevitable refunding of our
vast national debt, how it will operate on the necessary refunding of State and municipal
debt, how the advantages of Nation over State and municipality, or the contrary, may
be avoided. Clearly the States would not ratify to their own apparent disadvantage.
I suggest the consideration because the drift of wealth into nontaxable securities is
hindering the flow of large capital to our industries, manufacturing, agricultural, and
carrying, until we are discouraging the very activities which make our wealth.
I should also like to call to your attention the statement as to the
decline in taxable income, particularly from investments, which
appeared in my Annual Report for 1921, on pages 20-21, as follows:
The Injurious Effect of High Rates on the Revenues.
The actual efiect of the high surtaxes can readily be seen in the statistics publi''.hed
by the Bureau of Internal llevenue.
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:
1 See Annual Report of the Secretaiy of the Treasury, 1921, pp. 349 and 379.
319
SECRETARY OF T H E TREASURY.
Table showing decline of taxable incomes over $300,000.
N u m b e r of r e t u r n s .
AU
classes.
1916..
1917
1918....
1919
Incomes
over
$300,000.
437,036
3,472,890
4,425,114
5,332,760
1,296
1,015
627
679
N e t income.
• AU classes.
$6,298,577,620
13,652,383,207
15,924,639,355
19,859, 491,448
I n c o m e from dividends,
interest, a n d i n v e s t m e n t s .
Incomes
over
$300,000.
AU classes.
$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 any 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 taxable incomes of $300,000 and over—the drop being from $992,972,986
in 1916 to $440,011,589 in 1919.
The effect of the high surtaxes in the other brackets is apparent from a brief study
of the statistics regarding taxable investment income.
I n the bracket '^Incomes of $300,000 and over," the taxable investment income declined from' $746,614,591 in 1916 to $328,360,613 in W19; 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 income from interest, exclusive of interest on Government
obligations, the decline is still more striking, the figures being as follo\^s:
Incomes, $300,000 and over:
'
1916
$165,733,900
1917
111,468,127
1918
74,610,507
1919
,
60,087,093
Incomes, $100,000 to $300,000:
1916
....„
:
158,870,428
1917
119,539,786
1918
:
91,030,392
1919
91,467,182
Incomes, $60,000 to $100,000:
1916......
93,280,583
1917
75,375,484
1918
65,784,062
1919
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 60 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.
I n view of these figures, is it not clear that these high surtax rates are rapidly ceasing to be productive of revenue to the Government? And is it not equally clear
that their effect has been to divert into unproductive channels not merely the income on the old investments, b u t to force a large part of the old investment capital
into unproductive channels?
I attach for the further information of the Committee in this connection the following tables which have been prepared by the Government Actuary:
1. Estimate of the total amount of wholly tax-exempt securities outstanding
January 1, 1922. .
2. Table showing advantage of investing in tax-free securities as compared with
a like investment in taxable securities.
3. Estimate of revenue loss to Federal Government through wholly tax-exempt
securities outstanding January 1, 1922.
320
REPORT ON THE FINANCES.
According to reports, there were issued during the calendar
year 1921 fully tax-exempt securities of States and municipalities
to the aggregate amount of about $1,100,000,000, and the indications are that further issues will follow during the current year in
substantial volume. Fully tax-exempt land bank bonds. Federal
and Joint Stock, to an amount exceeding $100,000,000, were also
issued during 1921, and further issues are in prospect. The Federal
Government, on the other hand, has adopted the policy of not
issuing fully tax-exempt obligations of its own, and its current
offerings must be sold in competition with the fully tax-exempt
offerings of States and cities.
The most important consideration is that the existence of the
growing mass of tax-exempt securities, coupled with the extremely
high surtax rates still imposed by law, tends to drive persons of
large income more and more to invest in wholly exempt securities
issued and still being issued by States and municipalities and heretofore issued by the Federal Government. The result is to impair
the revenues of the Federal Government and to pervert the surtaxes, so that instead of raising revenue they frequently operate rather
to encourage investment in wholly tax-exempt securities, and even
to encourage the issue of such securities by States and municipalities, 'fiiis process tends to divert investment funds from the
development of productive enterprises, transportation, housing,
and the like, into non-productive or wasteful State or municipal
expenditures, and forces both the Federal Government and those
engaged in business and industry to compete with wholly taxexempt issues and on that account to pay higher rates of interest.
The greatest value of the full exemption from taxation arises,
of course, from the exemption it confers in respect to Federal income
surtaxes, and the constantly increasing volume of tax-free securities
therefore constitutes a real menace to the revenues of the Federal
Government. At the same time it makes the high surtaxes operate
as inducements to investment in non-productive public indebtedness and is gradually destroying them as revenue producers. As a
consequence, the yield of the surtaxes is dwindling and there is a
premium on the issue of bonds of States and cities. In the last
analysis this is at the expense of the Federal Government, and
it is having a most unfortunate and far-reaching effect upon the
development of the whole country, because of the diversion of
wealth from productive enterprise.
The problem is one of exceptional difficulty, and it is not easy to
point to a practicable remedy. But the problem is none the less
real, and it is important to do whatever can be done to meet it.
Gne angle of approach is through the proposed Constitutional amendment; another is through the revision o f t h e surtax rates to remove
thd heavy premium on tax-free securities. I t will be helpful to the
whole situation if the m a t t e r m a y have early consideration by the
Committee, with a view to appropriate action.
^
Sincerely yours,
(Signed)
A. W. MELLON, Secretary.
Hon.
JOSEPH W . FORDNEY,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, D . C .
SECRETARY OF THE TREASURY.
321
JANUARY 12,
1922.
Memorandum for Secretary:
(In re tax-exempt securities.)
The Bureau of the Census reports that for the years 1913 and 1919, the total indebtedness of the States was as follows:
1913
$422, 796, 525
1919
744,582,933
This would indicate a total indebtedness of the States, as of January 1, 1920, of about
$775,000,000.
The Bureau of the Census reported the total indebtedness of County and minor civil
divisions of the States, which includesall cities, towns, etc., as of 1913, at $4,075,152,904. This included $3,475,954,353 exclusive of Sinking Fund assets. Tbis indebtedness probably increased by January 1,1920, to about $5,595,000,000. That is, the total
indebtedness of the States and their minor civil divisions as of January 1, 1920, was
about $6,370,000,000.
According to the financial press, about $672,000,000 of new indebtedness was added
during the year 1920, and about $1,100,000,000 for the year 1921. This would make
the total indebtedness of the States and minor political subdivisions thereof as of
January 1, 1922, $8,142,000,000.
From this the estimated total tax-free securities outstanding, as of January 1, 1922,
may be tabulated as follows:
State, County, and minor political subdivisions of the States
$8,142,000,000
U. S. tax-free bonds (net outstanding)
2,184,000,000
Federal Farm Loan Bonds (net outstanding)
284,000,000
Bonds of Insular possessions (net outstanding) ^
50, 000,000
Total
10, 660,000,000
This estimate may be fairly taken as a maximum, as no allowance is made in the
computation for any debt maturing since July 1st, 1919.
(Sgd.)
Jos. S. MCCOY
Goverhment Actuary.
J.\NUARY 14, 1922.
Memorandum for Secretary:
Loss to Government through tax-free securities.
Estimated total of all tax-free securities issued in the United States,
outstanding January 1, 1922
$10, 660,000,000
Of this amount it is probable that say $5,660,000,000 is held by Corporations, such
as Insurance, Surety and Bonding companies. Banks and Trust companies, etc., which
are required to retain certain reserves. Many States require these reserves held by
concerns doing business therein to be in the form of local state and municipal securities.
A taxable security to yield the same revenue, after paying a tax of 12|%, as does a
5% tax-exempt security, must yield 5.714%. That is, on an investment of $100,000
by a corporation, the advantage of a tax-free investment would be $714.00 per year,
as compared with a taxable investment. As a large percentage of insurance, banking
and surety companies are required to invest in these tax-free securities, they would
still be obhged to invest in them if they were taxable, so it would seem safe to say that,
if they were all made taxable, the gain to the Federal Government in tax from corporation-held tax-exempt securities would be not in excess of $35,000,000 per annum. We
must also remember that all commercial stocks are now tax-exempt in the hands of
corporations, without materially reducing their taxes. Of the remaining $5,000,000,000 in tax-exempt securities, held by individuals, partnerships and abroad, it is safe to
say that upon about $2,500,000,000 the gain in tax would be nil, and that upon the
remaining $2,500,000,000, about $85,000,000. That is, if all tax-exempt securities outstanding January 1,1922, were made taxable, the gross increase in revenue to the Government would be approximately $120,000,000.
.
There is litile doubt that under these conditions the future investor in what are now
tax-exempt securities, would demand that they bear a higher rate of interest or be sold
at a discount, sufficient at least to meet this tax.
(Sgd.)
Jos. S. MCCOY
Government Actuary.
1 Philippine Islands, Hawaii and Porto Rico.
14263—FI 1922
^21
322
REPORT ON T H E FINANCES.
JANUARY 14,
1922.
ADVANTAGE OP INA^ESTING IN T A X - F R E E S E C U R I T I E S AS COMPARED WITH A L I K E I N V E S T M E N T IN T A X A B L E S E C U R I T I E S .
I. I n each case $40,000 is assumed to be invested in a tax-free 5% security and by
comparison in a taxable stock bearing the necessary rate of interest so as to yield the
same income, after paying the income tax of the existing law.
N e t income of investor
from t h e above in1 N e t income v e s t m e n t . after n a v of investor
ing income t a x on
exclusive
same.
of t h a t
from t h e
above inWith
With
vestment.
taxable
tax-free
stock.
security.
$4,000
16,000
28,000
40,000
i
60,000
80,000
100,000
200,000
500,000
1,000,000
•
$2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
S2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
Tax—Surt a x on
dividends.
SO. 00
105. 26
272. 73
439.02
• 777.78
1,225. 81
1,846.15
2,000. 00
2,000. 00
2,000.00
Income
from
taxable
stock
before
paying
tax.
$2,000.00
2,105.26
2,272.73
2,439. 02
2,777. 78
3,225. 81
3,846.15
4,000. 00
4,000.00
4,000. 00
Necessary
rate of
interest of
taxable
security.
5!26%
5.68%
6.1(% 1
8.06%
9.62%
10.00%
10.00%
10.00%
I I . Advantage of investing in a tax-free security, as compared with any other form
of investment when the income is subject to both normal and surtax, such as a mortgage, commercial bond, etc.:
In each case $40,000 is assumed to be invested in a tax-free security, and by comparison, the same amount in the other form of investment, yielding the necessary rate
of profit, so as to give the same income after paying the income tax of.the existing law.
The investor is assumed to be married, without dependents. ,
N e t income
of investor
exclusive
of t h a t
fromthe
above investment.
$500
4,000
16,000
28,000
40,000
•60,000
80,000
100,000
200,000
500,000
1,000,000
N e t income of investorfrom t h e above investIncome
m e n t , after p a y i n g inNecessary
Total tax
from
come t a x on same.
rate of
on receipts
taxable
interest
of
from above security
taxable
before
p
a
y
i
n
v
e
s
t
m
e
n
t
.
With
With
security.
ing t a x .
taxable
tax-free
security.
security.
$2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
$2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
$0.00
80.00
265.26
432.73
599.02
937. 78
1,385.81
2,006.15
2,160.00
2,160.00
2,160.00
$2,000.00
2,080.00
2,265. 26
2,432. 73
2,599.02
2,937. 78
3,385.81
4,006.15
4,160.00
4,160.00
4,160. 00
5.00%
6!o.s%
8.46%
10.02%
10.40%
10.40%
10.40%
From these tables it is observed that there is an advantage to the investor in taxexempt securities yielding a 5% income, as compared with an investment of the
same sum in the stock of a corporation where the return from that stock is less than
from 5% to 10;^, depending upon the taxable net income of the investor. I n case
of an investment of the same sum in a mortgage, corporate bond, or other completely
taxable form of investment the advantage exists, unless this latter investment yields
from 5% to 10.40%, depending upon the net income.
Where the amount invested is greater than $40,000, the upper limit will be the
same, b u t the advantage will be somewhat extended where the net income from other
sources is small or comparatively small, as is shown in the table following. .
323
SECKETAKY OF THE TREASUBY.
Investment of p,000,000 in a 5 per cent tax-exempt security as compared ivith the investment of the same sum in commercial stochs.
Net income
of investor
exclusive
of t h a t
from t h e
above investment.
$4,000
16,000
28,000
40,000
60,000
80,000
100,000
200,000
500,000
1,000.000
Net income of investor
from t h e above investm e n t , after p a y i n g income t a x on same.
Tax—Surt a x on
dividends.
With
With
taxable
tax-free
security.
stock.
$50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
$50,000
50,000
50,000
50,000
50,000
50,000
50,000
50,000
. 50,000
50,000
Income
Necessary
from t a x rate of
able stock interest of
before p a y taxable
ing t a x .
security.
$7,611.11 $57,611.11
13,111.11
63,111.11
20,037.74 • 70,037. 74
28,923. OS
78,923.08
38,076. 92
88,076.92
44,509. SO
94,509. 80
47,058. 82
97,058.82
50,000 100,000.00
50,000 100, ODO. 00
50,000 100,000.00
•
5.76%
6.31%
7.00%
7. 89%
S.81%
9. 45%
9.71%
10.00%
10.00%
10.00%
The letter from the Secretary of the Treasury, dated November 4,
1921, to which reference is made in the above letter was as follows:
NOVEMBER, 4,
1921.
D E A R MR. CHAIRMAN: I received your letter of October 27, 1921, ^ i t h the enclosed
copy of the Joint Resolution introduced by Mr. McFadden (H. J. Ees. 211), proposing
an amendment to the Constitution of the United States to restrict the further issuance
of tax-exempt securities. This amendment is in the form suggested by the Treasury
in my letter of September 23, 1921, to Congressman McFadden, a copy of which is
enclosed for your information. This letter outlines the Treasury's general views
with regard to the proposed Constitutional amendment.
I think it would be helpful if the present Congress, as a part of the tax revision
program, would take some action to propose to the States a Constitutional amendment
to restrict future issues of tax-exempt securities, and that the amendment in the
form introduced by Mr. McFadden merits the serious consideration of the Committee
on Ways and Means. At the least, it offers the basis for a thoroughgoing treatment
of the tax-exempt security problem. The existence of the present great mass of
about $10,000,000,000 of fully tax-exempt securities, with the prospect of continued
issues of tax-exempt securities unless some restrictive amendment is adopted, necessarily tends to defeat the surtaxes imposed b y the revenue laws, while the combined
effect of the high surtaxes and the unlimited volume of tax-exempt securities is
inevitably to divert capital which would otherwise be employed in productive enterprise into relatively unproductive public expenditure. I believe that there would
be nothing in the long run more helpful to the recovery of business and industry
in the country, and at the same time nothing better calculated to protect the Government's own revenues, than a revised system of taxation which not only'moderates
the surtaxes but also, takes steps to stop the diversion of investment funds into taxexempt securities.
Very truly yours,
(Signed)
A. W. MELLON, Secretary.
Hon.
JOSEPH W . FORDNEY,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, D . C .
1 enclosure.
The letter from the Undersecretary of the Treasury, dated November 10, 1921, to which reference is made in the Secretary's letter of
January 16, 1922, was as follows:
N O V E M B E R 10,
1921.
MY D E A R CONGRESSMAN: I received your letter of November 2, 1921, with the
enclosed copy of the Joint Resolution (H. J. Res. 211), which you introduced on
October 25th, proposing an amendment to the Constitution of the United States to
324
REPORT ON T H E FINANCES.
restrict further issues of tax-exempt securities. I had already noted t h a t this Joint
Resolution followed the draft submitted with the Secretary's letter of September 23rd.
I n response to the request of the Chairman of the Committee on Ways and Means, to
which the Joint Resolution was referred, the Secretary has now expressed his further
views in the matter in a letter to the Committee dated November 4,1921,^ a copy of
which is enclosed for your information.
1 have examined the suggested substitute resolution enclosed with your letter of
November 2nd, and have several comments. I should say that the chief objection
to the substitute was a practical one, namely, that it includes provisions with respect
to the taxation of salaries of public officials of the several States and of the political,
subdivisions thereof which would tend to create opposition to the Constitutional
amendment as a whole, entirely out of proportion to the benefits to be derived from
this particular change. I t may be that the salaries of such officials ought to be subject
to the Federal income tax, and undoubtedly the present situation results in some
discrimination in favor of State and municipal officials as against Federal officials
and other individuals. I t will be exceedingly difficult in any circumstances, however,
to get three-fourths of the States to ratify a Constitutional amendment to restrict the
further issue of tax-exempt securities, and to add to these difficulties by giving the
State and local officials who are likely to be most active in the several States a definite
personal interest against the amendment might easily defeat the whole proposition.
I t may also be said that notwithstanding the present discrimination in favor of State
and local officials, the tax-exempt status of their salaries results, after all, in only a
slight increase in their compensation, and that for the most part the State and local
officials are not so highly paid as to make this extra compensation any crying evil.
I n other words, while the proposed substitute may be entirely right in theory as to
salaries of State and local officials, and conversely as to Federal officials in respect of
State and local taxation, as a practical matter this feature of it would probably endanger
the really important part of the amendment.
The substitute also inserts in the form of a proviso the condition that incomes derived
from securities issued by or under the authority of the United States must be taxed
b y the United States before the United States has power to tax incomes from securities
issued b y or under the authority of the several States, and makes the same change
with respect to the taxation by the States of incomes derived from securities issued
by or under the authority of the United States. The provision as to taxation by the
States has been altered, moreover, so as to remove the limitation to " residents thereof"
in the two places where it appeared in the Secretary's draft, and under both provisos
"incomes derived from all securities" issued by themselves after the ratification of the
amendment would have to be taxed before there would be power on the part of the
Federal taxing authorities, or State and local taxing authorities, as the case might be,
to tax incomes derived from securities issued by the other. The word ' ' a l l " would
seem to be unnecessarily restrictive, and the omission of the limitation of the taxing
power of the States to incomes derived by ''residents thereof" might open up securities
issued b y or under the authority of the Federal Government to double taxation by
the States. I am therefore inclined to believe that the phraseology of the amendment proposed by H. J. Res. 211 is better, in that it makes more clear the reciprocal
character of the change and gives better protection against discrimination. The' *
intent of the conditions is to insure that there will be mutuality, and this is provided
for best b y words like " if, when and as " or " in the same manner and to the same ext e n t that.^' As a matter of fact there is much to be said for making even H. J. Res.
211 more clear in this respect and using the words "if, when and a s " or " i n the same
manner and to the same extent t h a t " or other similar words. If the condition is
stated simply in the form 'of a proviso, the power to tax might arise in favor of the
IFederal or State Governments from the mere fact of taxation of their own securities,
Tthough the taxation w
@FedFRASER