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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 1923 With Appendices WASHINGTON GOVERNMENT PRINTING OFFICE 1924 TREASURY DEPARTMENT, Document No. 2926 Secretary. ^ro iu CONTENTS. _ ' ' ' • ' " ' " Page, Introduction. ,.. '.'.., , . 1. Taxation. :.........., . 3 Receipts and expenditures. 12 , Accomplisliments during the fiscal years 1921-1923.....:;. 15Estimates for the fiscal years 1924 and 1925 IS* Refunding the short-dated debt. 19' World War Foreign Debt Commission 24 Debt settlement with Great Britain. -----24 Debt settlement with F i n l a n d : . . , 26 Progress of negotiations with other debtor nations 26 Obligations, of foreign governments. 29 Repayments on account of principal. 30 Interest payments : 31 Change in terms of, and security for, obligation of Austrian Government.. 33 Bureau of Internal Revenue. 5. 33 • Prohibition and narcotic enforcement. 37 Customs 39 The domestic credit situation 40 Federal farm loan s y s t e m . . . . . . ' . ' ;. 44 Federal intermediate credit banks. , 44 Federal land banks. •... 45 Joint-stock land b a i n k s . . . . ' . . . . . . 1'..:'.:.......-..: ..-...•.:...... '.'47. The War Finance Corporation .•... 47 Farmers' seed-grain loans : .48 Public-debt transactions 49 Cumulative sinking fund 49 Temporary bonds outstanding 50 Treasury notes and certificates of indebtedness 51 Government savings securities : ... 55 Redemption and exchange of 1919 war-savings certificates . 59 Market prices of Government bonds 60 Deposits of Government funds , 62 Securities owned by the United States Government 66 Railroads. . . . . :"....... • 67 Section 204 • 68 Section 209 68 Section 210. 69 Checking accounts of Government corporations and agencies : :. 70 Gold : 71 Silver : 73 The m i n t s . . . . . . . . . . : : , ....: : ^77 Hospitalization .77 Public health 78 Public.buildings : '.......::..•. : ;...:...:..... '82 The Coast Guard. 87 Bureau of Engraving and Printing 88 New currency designs...: , ,88 District of. Columbia teachers' retirement fund., ,.... \ '90 United States Grovernment life insurance fund , 90 Civil-service retirement and disability fund ; . . . . . . . . : 91 Soldiers' and sailors' civil relief bonds :.: — : 92 Surety bonds. 92 Treasury organization . . . . . ••.: 93 Budget and improvement c o m m i t t e e . . : : . . 1 : . . : • . . : . . : '.... '. 93 Bureau of Supply . . . : . . . . . . . ^ :..., . 96 General S u p p l y Committee.:'...:.. .....: .-.. .•:.: . .98 Personnel.....' • •• • -. - • - - - -. ......: . 99 Personnel classification . . . . . . ^ ..;...: , '.... 99 ''3Jm IV CONTENTS. Retirement of civil-service employees Practice before t h e Treasury Department Department circulars Panama Canal Finances : Condition of t h e Treasury, June 30, 1923 Receipts and expenditures, on cash basis : Receipts and expenditures, on warrant basis Estimates for 1924 and 1925 compared with actual receipts and expenditures for 1923 Estimates for 1925 and appropriations for 1924 ° Page. 100 101 102 103 103 103 106 114 127 131 Exhibits accompanying the report on the finances. E x h i b i t 1: Statement of the public debt of the United States, June 30, 1923. . 134 E x h i b i t 2: Preliminary statement of the public debt, October 31, 1923 139 Exhibit 3: Summary statement of interest-bearing bonds, notes, and certificates of indebtedness, engraved, issued, retired, and canceled during the fiscal year ended June 30, 1923, and amounts on hand and outstanding June 30, 1922, and June 30, 1923 141 Exhibit 4: Interest-bearing bonds, notes, and certificates of indebtedness issued during the fiscal year ended June 30, 1923, classified by issues and accounts. ' 143 Exhibit 5: Interest-bearing bonds, notes, and certificates of indebtedness retired during the fiscal year ended June 30, 1923, classified b y issues and accounts 146 E x h i b i t 6: Notes and certificates of indebtedness outstanding June 30, 1923, which matured during the fiscal year 1923, classified b y issues and denominations i.; 149 E x h i b i t 7: Interest-bearing bonds, notes, and certificates of indebtedness outstanding J u n e 30,1923, classified b y issues and denominations 150 E x h i b i t 8: Registered interest-bearing bonds outstanding June 30, 1923, classified by issues, and number of registered accounts, amount of interest payable, and number of checks drawn during the fiscal year 1923 — 153 E x h i b i t 9: Interest-bearing bonds, notes, and certificates of indebtedness received from the Bureau of Engraving and Printing during the fiscal year ended June 30, 1923. 154 E x h i b i t 10: Interest-bearing bonds, notes, and certificates of indebtedness on hand June 30, 1922, and June 30, 1923, and securities on hand June 30, 1923, which have ceased to bear interest during the fiscal year 1923, classified by issues 156 E x h i b i t 11: Unissued interest-bearing bonds, notes, and certificates of indebtedness delivered to the Register of the Treasury during the fiscal year 1923.. 160 Exhibit 12: Summary of transactions in interest-bearing bonds, notes, and certificates of indebtedness for the fiscal year 1923 162 E x h i b i t 13: Transactions in pre-war bonds during the fiscal year 1923 164 Exhibit 14: Transactions in Liberty bonds, Treasury bonds, and Victory notes during the fiscal year 1923 165 Exhibit 15: Transactions in Treasury notes during the fiscal year 1923 169 Exhibit 16: Transactions in certificates of indebtedness during the fiscal year 1923 170 Exhibit 17: Transactions in Treasury (war) savings securities during the fiscal year 1923 172 Exhibit 18: Liberty bond and Victory note conversions from November 15, 1917, to June 30, 1923 174 Exhibit 19: Certificates of indebtedness, total issues and the amount issued through each Federal reserve bank from July 1, 1922, to October 31, 1923 175 Exhibit 20: Treasury notes issued through each Federal reserve bank and the Treasury Department from July 1, 1922, to October 31, 1923 177 Exhibit 21: Treasury bonds of 1947-1952, subscriptions and allotments, b y Federal reserve districts. 178 Exhibit 22: Insular and District of Columbia loans—changes during fiscal year ended June 30, 1923. '. 180 Exhibit 23: Public-debt retirements chargeable against ordinary receipts 181 Exhibit 24: Department Circular No. 315 offering for subscription 4^ per cent Treasury notes, series C-1925, dated and bearing interest from December 15, 1922 .;.../! 183 '4 Xi CONTENTS. V Paga. Exhibit 25: Letter of Secretary of the Treasury, dated December 7, 1922, to banking institutions, accompanying the offering of Treasury certificates of * indebtedness of series TM2-1923 and series TD-1923 and Treasury notes of series C-1925, dated December 15, 1922 184 Exhibit 26: Department Circular No. 318 offering for subscription 4^ per cent Treasury notes, series A-1927, dated and bearing interest from January 15, 1923 187 Exhibit 27: Department Circular No. 323, offering for subscription 4 | per cent Treasury notes, series B-1927, dated and bearing interest from May 15,1923.. 188 Exhibit 28: Letter of Secretary of the Treasury, dated May 7, 1923, to banking institutions, accompanying the offering of Treasury notes of series B-1927, dated May 15,1923 190 Exhibit 29:. Text of Department Circular No. 300. Regulations with respect to United States bonds and notes 193 Exhibit 30: Department Circular No. 322. Payment of uncalled 4 | per cent Victory notes at maturity 232 Exhibit 31: Department Circular No. 317. Subscriptions for 4J per cent Treasury bonds of 1947-1952 in' default 235 Exhibit 32: Second supplement to Department Circular No. 225. Receipt of Liberty bonds, Treasury bonds, and Treasury notes for estate or inheritance taxes 236 Exhibit 33: Department Circular No. 314, offering for subscription Treasury certificates of indebtedness, series TM2-1923 and TD-1923, dated and bearing interest from December 15, 1922 -.•-;• 2^*^ Exhibit 34: Dei^artment Circular No. 321, offering for subscription Treasury certificates of indebtedness, series TS2-1923 and TM-1924, dated and bearing interest froDQL March 15, 1923 238 Exhibit 35: Department Circular No. 325, offering for subscription Treasury certificates of indebtedness, series TD2-1923, dated and bearing interest from June 15, 1923 240 Exhibit 36: Department Circular No. 328, offering for subscription Treasury certificates of indebtedness, series TM2-1924, dated and bearing interest from September 15, 1923 241 Exhibit 37: Payments to carriers from November 16, 1922, to November 15, 1923, inclusive, provided for in section 204 of the transportation act of 1920, as amended, for reimbursement of deficits on account of Federal control 243 Exhibit 38: Payments to carriers from November 16, 1922, to November 15, . 1923, inclusive, under the guaranty provided for in section 209 of the transportation act of 1920, as amended, and payments by carriers to the United States under the same section. 245 Exhibit 39: Loans to carriers under section 210 of the transportation act of 1920, as amended, and repayments on such loans from November 16, 1922, to November 15, 1923, inclusive, with loans outstanding November 15, 1922, and November 15, 1923 249 Exhibit 40: Securities owned by the United States Government June 30 1923. 251 E x h i b i t 41: Obligations of foreign governments held by the United States Treasury, together with interest accrued and remaining unpaid thereon, as of the last interest period prior to or ending with November 15, 1923 255 Exhibit 42: An act to create a commission authorized under certain conditions to refund or convert obligations of foreign governments held b y t h e United States of America, and for other purposes 256 Exhibit 43: Address of t h e President of t h e United States to the Congress, February 7, 1923, submitting t h e report of the World War Foreign Debt Commission 257 Exhibit 44: An act to amend t h e act entitled " A n act to create a commission authorized under certain conditions to refund or convert obligations of foreign governments held b y t h e United States of Amierica, and tor other purposes, '' approved February 9, 1922 261 Exhibit 45: Agreement for the funding of t h e debt of Great Britain to t h e United States 262 Exhibit 46: Letter from the Secretary of the Treasury, dated June 19, 1923, to the British ambassador, regarding acceptance of United States notes and certificates issued after April 6, 1917, in payment of principal or interest on bonds issued by Great Britain under the terms of t h e debt settlement 270 VI CONTENTS. Page. Exhibit 47: Letter from t h e Secretary of the Treasury, dated June 19, 1923, to the British ambassador regarding the deposit by Great Britain of the so-called subrogated securities described in letter by Sir S. Hardman L e v e r . . Exhibit 48: Department Circular No. 108,.revised. Regulations with respect to ^ United States war-savings certificates Exhibit 49: Department Circular No. 329. New offering of Treasury savings certificates, issue of December 1, 1 9 2 3 . . . . . . , Exhibit 50: Department Circular No, 330. Redemption and exchange of warsavings certificates, series of 1919 Exhibit 51: Department Circular No. 331. Redemption and exchange of Treasury savings certificates, series of 1919 '. E x h i b i t 52: • Department Circular No. 39, revised. Offers of compromise under section 3469, Revised Statutes United States Exhibit 53: Department Circular No. 312. Judgments rendered against the United States b y United States district courts .--.-.Exhibit 54: Department Circular No. 311. Procedure under paragraph 2 of Treasury Department Circular No. 195 of .January 24, 1921, in connection , with requisitions for disbursing, credits, when the amount of the credit requested exceeds the penalty oi the official bond of the disbursing officer as defined by the Comptroller General of the United States Exhibit 55: Department Circular No. 316. Regulations concerning requisitions of disbursing officers the amounts of whose bonds are subject to determination hy the Secretary of the Treasury Exhibit 56: Department Circular No. 327. Regulations and instructions governing the issue of duplicate disbursing officers' checks Exhibit 57: Department Circular No. 54, revised. Regulations and instructions governing the issue of duplicate Treasury warrants, Treasurer's checks, and interest checks Exhibit 58: Department Circular No. 86, amended and supplemented. Instructions relative to deposits of gold coin and gold certificates for credit in gold fund account with Federal Reserve Board and payments^ therefrom under act of June 21, 1917 Exhibit 59: Department Circular No. 55, amended and supplemented. Issue, exchange, and redemption of money Exhibit 60: Department Circular No. 230. Laws and regulations governing the recognition of attorneys, agents, and other persons representing claimants and others before the Treasury Department and offices thereof Exhibit 61: Bureau of Supply. Amendment of Department Circular No. 283 of March 28, 1922 E x h i b i t 62: Department Circular No. 319. Individual card record for stationery supplies ". Exhibit 63: Department Circular No. 320. Order authorizing a traffic manager for the Treasury Department Exhibit 64: Department Circular No. 324. Treasury Department Personnel : Classification Board Exhibit 65: Department Circular No. 244. Supervision of bureaus and offices of the Treasury Department arid divisions of the office of the Secretary of the Treasury b y the Undersecretary of the Treasury and the Assistant Secretaries of the Treasury Exhibit 66: Number of employees in the departmental service of the Treasury . in Washington b y months from J u n e 30, 1922, to September 30, 1923 Exhibit 67: Program of Treasury Department under Public Act No. 384. Hospital construction Exhibit 68: Letter from the Postmaster General and the Secretary of the Treasury transmitting recommendations for a Federal building program throughout the United States and submitting a table showing the number of leases and approximately the amount of rents paid for buildings for Federal u s e . . . Exhibit 69: Letter from the Postmaster Genera,l and the Secretary of the Treasury, transmitting additional recommendations to the one.submitted December 30, .1922 ( i l . Doc. No. 523), for a Federal building program throughout the United States, and submitting a table showing the number of leases and approximately, the amount of rents paid for buildings for Federal use Exhibit 70: Treasury Department statement, dated September 10, 1923, concerning new designs for paper currency :. 271 271 295 304 310 314 315 316 320 321 328 331 333 337 351' 352 352 353 354 356 357 359 373 375 CONTENTS. Vn Page. Exhibit 71: Letter from the Secretary of the Treasury to the acting chairman of the Committee on Ways and Means, dated December 21,1922, with respect to House Joint Resolution 314, proposing a constitutional amendment restricting further issues of tax-exempt securities. Exhibit 72: Letter from the Secretary of the Treasury to the chairman of the committee on taxation of the Chamber of Commerce of the State of New York, dated January 31, 1923, with respect to the question of tax-exempt securities Exhibit 73: Letter from the Secretary of the Treasury to the chairman of the Committee on the Judiciary, United States Senate, dated February 16, 1923, with respect to House Joint Resolution No. 314, proposing a constitutional amendment restricting further issues of tax-exempt securities Exhibit 74: An act relating to the sinldng fund for bonds and notes of the United States Exhibit 75: Decision of the Comptroller General'dated November 29, 1922, authorizing the Secretary of the Treasury to revoke certain allocations of silver, made pursuant to the terms of the Pittman Act, for subsidiary coinage.. Exhibit 76: Supplemental regulations governing sales of silver to the Director of the. Mint under the Pittman Act Exhibit 77: Letter from the Undersecretary of the Treasury to the vice chairman of the Senate Commission of Gold and Silver Inquiry, dated May 9,1923, with respect to the cancellation under the Pittman Act of allocations of silver for subsidiary coinage Exhibit 78: Letter from the Undersecretary of the Treasury to the vice chairman of the Senate Commission of Gold and Silver Inquiry, dated May 31, 1923, with reference to the allocation of silver for subsidiary coinage under the act approved April 23, 1918 Exhibit 79; Letter from the Undersecretary of the Treasury to the vice chairman of the Senate Commission of Gold and Silver Inquiry, dated August 25, 1923, with reference to deductions for metallurgical losses 376 384 387 392 393 396 397 400 403 Abstracts of reports of bureaus and divisions. Treasurer of the United States 413 Comptroller of the Currency 416 Legislation 416 National banks organized, consolidated, insolvent, in volimtary liquidation, and in oi)eration, June 30, 1923 . 419 Condition of national banks ' 422 Banks other than national 423 All reporting banks, -principal resources and liabilities 424 Director of the Mint 426 Institutions of the Mint Service 426 Coinage , : 427 Gold operations 427 Silver operations . . . 427 Refineries 429 New coin design 429 Stock of coin and monetary bullion in the United States. 429 Production of gold and silver 429 Industrial arts, gold and silver consumed i n . . . ; . . . . . 430 Export of gold coin 430 Appropriations, expenses, and income 430 Deposits, income, expenses, and employees, by institutions, fiscal year 1923 431 Bureau of Internal Revenue 431 Receipts from internal-revenue taxes for fiscal years 1922 and 1923 431 Cost-of administration. 432 Income and profits taxes 433 Committee on appeals and review 434 Sales tax. 434 Capital stock tax 434 Estate tax 435 Tobacco taxes 435 Miscellaneous stamp taxes 435 Accounts and collections unit 436 VIII CONTENTS. Bureau of Internal Revenue—Continued. Page. Solicitor's office : 436 National prohibition 437 Bureau and field personnel 438 Bureau of Engraving and Printing 438 Customs 440 Customs Special Agency Service 441 Office of Supervising Architect 442 Public Health Service 447 Scientific research 447 Domestic quarantine (interstate sanitation) 449 Foreign and insular quarantine and immigration 449 International relations 450 Sanitary reports and statistics : 451 Hospitals and relief 451 Division of venereal diseases..'. 452 General inspections 453 Public Health library 453 Division of personnel and accounts 453 Financial statement 454 Coast Guard 455 Ice patrol to promote safety at sea 455 Winter cruising 455 Cruises in northern waters 456 Anchorage and movements of vessels 456 Removal of derelicts 456 Coastal communication 456 Coast Guard Academy 456 Coast Guard repair depot 457 Repairs and improvements to vessels and stations. 457 Enforcement of customs and other laws 458 Discipline 458 Award of life-saving medals 458 Personnel— 458 Units 458 Vessels 458 Promotion in commissioned grades 459 Division of Loans and Currency 459 Surrenders section. .• 460 Securities section 461 Registered accounts section 461 Claims section 462 Treasury (war) savings section 462 Mail and files unit 462 Issues control unit 463 Redeemed currency unit 463 Circulation. 463 Division of Paper Custody 465. Register of the Treasury 465 Division of Deposits 468 General and limited national-bank depositaries of public moneys 469 Insular depositaries of public moneys 469 Special depositaries of public moneys 470 Foreign depositaries of public moneys. 470 Division of Bookkeeping and Warrants 470 Summary of receipts and expenditures 470 The general fund 471 Warrants issued during the fiscal year 1923, adjusted to basis of daily Treasur>^ statements, revised 472 District of Columbia account of revenues and expenditures 473 Alien Property Custodian account 474 Purchase of farm-loan bonds. 474 Civil-service.retirement and disability fund 474 Secret Service Division •. 475 Division of Printing and Stationery 476 Printing and binding 476 Postage 1 478 Department advertising 478 CONTENTS. IX Page. Disbursing clerk Bureau of Supply Purchases and issues of stationery supplies General Supply Committee 478 479 481 483 « Tables accompanying the report on the finances. Table A.—Public debt of the United States outstanding June 30, 1923 492 Table B.—Principal of the public debt at the end of each fiscal year, from 1853 to 1923, exclusive of gold certificates, silver certificates, currency certificates, and Treasury notes of 1890 499 Table C.—^United States interest-bearing debt outstanding at end of each month from February 28, 1917, to August 31, 1923 501 Table D.—Public debt transactions from July 1, 1922, to June 30, 1923, inclusive 504 Table E.—^Unmatured Liberty bonds, Treasury bonds, and Victory notes outstanding from June 30, 1919, to August 31, 1923, classified b y denominations. 508 Table F.—Cash expenditures of the Government for the fiscal years 1917 to 1923, inclusive, as published in daily Treasury statements, classified according to departments and establishments ." 509 Table G.—Ordinary receipts, and expenditures chargeable against ordinary receipts, from April 6, 1917, to October 31, 1923, on the basis of daily Treasury statements unrevised. 512 Table H.—Condition of the United States Treasury at the close of the fiscal years 1921, 1922, and 1923 514 Table I.—^Appropriations made b y Congress for each fiscal year ending June 30, 1914 to 1924, including estimated permanent and indefinite appropriations and deficiencies for prior years 516 Table J.—Appropriations, expenditures, amounts carried to surplus fund, a n d ' unexpended balances for fiscal years 1885 to 1923 518 Table K.—Receipts and expenditures of the United States Government b y fiscal years from 1791 to 1923 520 Table L.—Postal receipts and expenditures for the fiscal years 1791 to 1923 532 Table M.—Sources of internal revenue, 1863 to 1923 534 Table N.—Internal-revenue receipts,' b y States and Territories, for the fiscal years 1922 and 1923 540 Table 0.—^Merchandise imported and customs duties collected from 1890 to 1922, and recapitulation from 1867 to 1922 542 Table P.—Receipts from customs, internal revenue, and sales of public lands, collected in each State and Territory, b y fiscal years, from 1915 to 1923, on basis of covering warrants issued '. 548 Table Q.—Customs statistics, b y districts, for the fiscal year 1923 550 Table R.—Stock of money in the United States, classified b y kind, at the end of each fiscal year from 1860 to 1889 552 Table S.—Stock of money in the United States, classified b y kind, at the end of each fiscal year from 1890 to 1923 553 Table T.—Stock of money, money in circulation, and amount of circulation per capita, in the United States from 1860 to 1923, inclusive 554 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 1922 and 1923 Panama Canal.... „ Receipts and expenditures on account of the Post Office Department Transactions in the public debt Net earnings derived from Federal reserve banks Payment of obligations of foreign Governments Cumulative sinlang fund Interest-bearing bonds, notes, and certificates retired Payment of interest on registered bonds of the United States Reserve and trust funds State of the Treasury, general fund—cash in the vaults Net available cash balance, 1914 to 1923 Gold in the Treasury. Securities held in trust ' 559 561 561 562 562 562 563 563 564 564 564 565 566 566 X CONTENTS. REP.ORT OF THE TREASURER—Continued. Bonds held as security for postal-savings funds Bonds and other obligations held in special trust funds Postal-savings bonds and investments therein Withdrawal of bonds to secure circulation Lawful money deposits for retirement of bank circulation Depositaries of the United States Public moneys in depositary banks Interest on pubHc moneys held in depositary banks Gold fund, Federal Reserve Board United States paper currency issued and redeemed Pieces of United States paper currency outstanding 1922 and 1923 Changes in denominations during fiscal 3^ear 1923 Paper currency held in the reserve vault Ratio of small denominations to all paper currency Redemption of Federal reserve and national currency Shipments Of currency from Washington, 1922 and 1923 Deposits of gold bullion at mints and assay offices, 1921-1923 Recoinage, 1922 and 1923 District of Columbia sinking fund General account of the Treasurer of the United States ^ 568 569 571 571 571 571 572 572 572 575 575 576 577 577 577 578 579 579 580 580 Tables accompanying report of the Treasurer. No. 1. —General distribution of the assets and liabilities of the Treasury, June 30, 1923 No. 2. —Available assets and net liabilities of the Treasury at the close of June, 1922 and 1923 No. 3.-—Distribution of the General Treasury balance, J u n e 30, 1923. No. 4.-—Assets of the Treasury other than gold, silver, notes, and certificates at the end of each month, from July, 1920 No. 5.-—Assets of the Treasury at the end of each month, from July, 1920.. No. 6.-—Liabilities of the Treasury 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 1921,1922, and 1923. No. 8. —Treasury notes of 1890 of each denomination redeemed and outstanding at the close of the fiscal years 1921, 1922, and 1,923 . . . No. 9. —Gold certificates of each denomination issued, redeemed, and outstanding at the close of the fiscal years 1921,1922, and 1923 No. 10. —Silver certificates of each denomination issued, redeemed, and outstanding at the close of the fiscal years 1921, 1922, and 1923. 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 1920 No. 12. —Old demand notes of each denomination issued, redeemed, and outstanding June 30, 1923 No. 13. —Fractional currency of each denomination issued, redeemed, and outstanding June 30, 1923 No. 14. —^^Compound-interest notes of each denomination issued, redeemed, and outstanding June 30, 1923 No. 15. —One and two year notes of each denomination issued, redeemed, and outstanding June 30, 1923 No. 16. —Seven-thii'ty notes redeemed and outstanding June 30, 1923 No. 17. —Refunding certificates, act of February 26, 1879, redeemed and outstanding June 30, 1923 No] 18. —Federal reserve and national banks designated depositaries of public moneys, with the balance held June 30, 1923 No. 19: —Number of banks with semiannual d u t y levied, by fiscal years, and number of depositaries with bonds as security at close of each fiscal year from 1915 No. 20. —Checks issued by the Treasurer for interest on registered bonds during the fiscal year 1923 ' No. 21. —Interest on 3.65 per cent bonds of the District, of Columbia paid during the fiscal year 1923 No. 22. —Coupons from United States bonds, certificates, and notes paid " during the fiscal year 1923, classified by loans vage. 582 583 584 584 585 585 586 587 587 588 589 590 590 590 590 591 591 591 593 593 594 594 CONTENTS. R E P O R T OF THE TREASURER—Continued, XI Page. 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 1923 595 No. 24.—Coupon interest on United States bonds paid b y check during fiscal year 1923 595 No. 25.—^]\Ioney deposited in the Treasury each month of the fiscal year 1923 for the redemption of national-bank notes and Federal reserve banknotes...... .595 No. 26.-^Amount of currency counted into the cash of the National Bank Redemption Agency and redeemed notes delivered b y fiscal vearsfrom 1916 to 1922, and by months during the fiscal year 1923 596 No. 27.—Currency received for redemption by the National Bank Redemption Agency from the principal cities and other places, by fiscal years from 1916, in thousands of dollars 597 No. 28.—^Mode of payment for currency redeemed at the National Bank Redemption Agency, by fiscal years, from 1916-, 597 No. 29.—Deposits, redemptions, assessments for expenses, and transfers and repayments on account of the 5 per cent redemption fund of national and Federal reserve banks, by fiscal years, from 1916. 597 No. 30.—Deposits and redemptions on account of the retirement of circulation, b y fiscal years, from 1916 ^ 597 No. 31.—Expenses incurred in the redemption of national and Federal reserve currency, b y fiscal years, from 1916 598 No. 32.—General cash account of the National Bank Redemption Agency for the fiscal year 1923 and from July 1,1874 599 No. 33.—^J?Lverage amount of national-bank notes outstanding arid the redemptions, b y fiscal years, from 1875 (the first year of the agency) .^ .• 599 No. 34.—Federal'reserve notes, canceled and uncanceled, forwarded b y Federal reserve banks and branches, counted and delivered to the Comptroller of the Currency for credit of Federal reserve agents 599 No. 35.—Number of notes of each kind of currency and denomination redeemed and delivered b y the National Bank Redemption Agency during, the fiscal year 1923 : 600 . No. 36.—Amount of money outside of the Treasury, the aniount held b y Federal reserve banks and agents, and the amount in circulation, etc., on the first day of each month from July. 1922 602 No. 37.—Total amount expended on account of the Panama Canal, the receipts from tolls, etc., and the proceeds of sales of bonds to the close of the fiscal year 1923 602 R E P O R T OF THE DIRECTOR OF THE M I N T : Operation of the mints and assay offices 603 Institutions of the Mint Service 603 Coinage. 603 Gold operations 604 Silver operations 604 Deposits of gold and silver. 605 Refineries : 605 New coin design . 605 Stock of coin and monetary bullion in United States ' 606 Production of gold and silver. 606 Industrial arts. 606 Export of gold coin 606 Appropriations, expenses; and income. 606 Additions and improvements 607 Deposits of gold and silver, income, expenses, and employees, b y institutions, fiscal year 1923 608 Coinage. 609 . Issue of fine gold bars for gold coin and gold bullion 609 Receipts and disbursements of gold bullion and balances on hand :. 610 Purchase of minor coinage metal for use in-domestic coinage 611 Minor coin distribution costs. 611 Minor coins outstanding 611 Operations .qf^tihe assay department. 612 XII CONTENTS. R E P O R T OF THE DIRECTOR OF THE MINT—Continued. Operations of the melting and refining and of the coining depai'tments, fiscal year 1923 Refining operations Ingot melts made Fineness of melts for gold and silver ingots Commercial and certificate bars manufactured Ingots operated upon b y coining departments and percentage of coin . produced Percentage of good coin produced to pieces struck ,-..... Sweep cellar operations Bullion gains and losses Wastage and loss on sale of sweeps. ^ Engraving department Dies manufactured Medals manufactured Medals sold Numismatic collection .' Employees Visitors Work of the minor assay offices Ore assays ' Gold receipts at Seattle Laboratory of the Bureau of the Mint Assay Commission's annual test of coin : Tables, report of Director of the Mint Page. 612 614 614 615 616 616 616 617 617 618 618 619 619 619 619 620 620 620 621 621 621 623 626 R E P O R T OF THE R E G I S T E R : Introduction Federal reserve banks as fiscal agents Retired securities canceled on account of reduction of principal of the public debt. Canceled secmities received for credit Records of issue New method of recording securities Improved filing facilities Destruction of retired securities Organization. Functional apportionment Personnel chart General condition Statistical statements 673 673 674 674 675 676 676 677 677 677 678 679 683 R E P O R T OF THE COMPTROLLER OF THE CURRENCY: Submission of the report Earnings of national banks Loans and investments Capital and other liabilities The interests of the Federal reserve system and the national b a n k s . . . . . . . Compulsory membership of national banks Fundamental relations of State and national banks with Federal reserve system 1 No inherent conffict between State and national systems. Branch banking a gradual growth Present development of branch banking Principal issues involved i n extension of branch banking Is a reserve system necessary? Can the Federal reserve system survive the operation within i t of large branch banking systems? Difficulty of examination Danger to Federal reserve system Branch banking essentially monopolistic Service of the unit banks Powers of the national banks relative to branch banking. Resolution of Federal Reserve Board on branch banking Intracity banking a local question Branch banking legislation necessary Increased flexibility for national banks necessary for the good of the Federal reserve system 727 727 727 728 728 729 730 730 731 732 733 733 734 734 735 735 736 738 739 742 742 742. CONTENTS. liBPORT OF THE COMPTROLLER OF THE CURRENCY—Continued. Absorption of the office of Comptroller of the Currency. Violation of fundamental principle of trusteeship. Effecit on remedial activities of comptroller No duplication involved Present cordial relations between office of Comptroller of Currency and Federal reserve banks Legal complications Reductio ad absurdum ' Injustice to national banks Responsibility of the Comptroller of the Currency Legislation enacted National a,gricultural credit corporations. -. Condition of national banks at date of each report called for during the year. Condition of national banks September 14, 1923 Resources ; Loans and discounts 1 Overdrafts. Customers' liability on account of acceptances United States Government and miscellaneous bonds and securities... Bankiing houses and other real estate, etc Lawful reserve and items with Federal reserve banks in process of collection Cash in vault ...: Balances due from banks and bankers Exchanges for clearing house Miscellaneous assets Liabilities— Capital, surplus, and undivided profits Circulating notes outstanding Deposit liabilities. Securities borrowed : Money borrowed Bank acceptances and other liabilities Aggregate assets and liabilities National-bank liabilities on account of bills payable and rediscounts Loans-and discounts of national banks June 30, 1923 Classification of loans and discounts for the past three fiscal years. Comparative statement of loans and discounts, including rediscounts, made by national banks during past three fiscal years Comparative changes in demand and time deposits, loans and discounts. United States and other bonds, etc., from June 30,1919, to June 30, 1923. United States Government securities held by national banks in reserve cities and States Investments of national banks June 30, 1923 Savings depositors and deposits in national banks June 30, 1923 Savings and individual deposits in national banks, June, 1913-1923 Earnings, expenses, and dividends of national banks Relation of capital of national banks to deposits, etc.... Per cent ratio of principal items of assets and liabilities of national banks to aggregate assets National-bank examiners National-bank failures Convictions of national-bank officers and employees for violations of the national banking laws during year ended October 31, 1923 Organization and liquidation of national banks Labor banks United States bonds and other interest-bearing obligations of the Government.. Redemption of national-bank and Federal reserve bank circulation Profit on national-bank circulation National-bank circulation. Domestic branches of national banks : Federal Reserve System Federal reserve bank discount rates Discount and interest rates Rates for money in New York XIII Page. 743 745 746 747 748 748 749 749 749 750 751 752 753 754 754 754 754 754 754 754 755 755 755 755 755 755 755 756 756 756 756 759 760 766 767 767 768 771 776 778 781 792 793 793 799 802 807 809 809 810 810 811 812 815 818 819 821 XIV CONTENTS. R E P O R T OF THE COMPTROLLER OF THE CURRENCY—Coritinued. Page. Rates lor sterling bills ;.. .^. . •:. 823 New York clearing house : 823 Clearing-house associations in 12 Federal reserve bank cities and elsewhere. 823 Banks other than national— . . . State (commercial) banks 824 Loan and trust companies , 826 Principal items of resources and liabilities-of loan and trust companies • in J u n e of each year, 1914 to 1 9 2 3 . , . . . - . . . . : 828 Stock savings banks. J 828 Mutual vsavings banks .....: ' 830 Depositors and deposits in mutual and stock savings b a n k s . . . . . . . . 831 Private banks : 834 All reporting banks other than national 836 Principal items of resources and liabilities of all reporting banks other than national on or about June 30, 1918-1923 . .... 838 Resources and liabilities of all reporting banks in each State, Alaska, and insular possessions. -. 839 Summary of combined returns from all reporting banks in United States, Alaska, and insular possessions, June 30, 1923 846 Individual deposits in all reporting banks 847 Resources and liabilities of all reporting banks, 1918-1923 848 Assets and liabilities of all banks, including Federal reserve banks 848 Cash in all reporting banks. -.849 Money in the United States 850 Banking power of the United States 853 Banks in District of Columbia : '.-.. 854 Earnings, expenses, and dividends of banks other than national in District of Columbia 855 Building and loan associations in District of Columbia 856 Building and loan associations in United States 856 Monetary stock in principal countries of the world.. 857 Federal land banks -.-. .•. 858 Joint stock land banks 859 United States postal savings system 860 School savings banks. 865 Savings banks in principal countries of the world. — 866 Resources of leading foreign banks of issue 869 Assessments on national banks to pay salaries and expenses of nationalbank examiners, year ended October 31,1923 . . : 870 Expenses incident to maintenance of currency bureau and net profit of Government from taxes on national and FederaLreserve bank notes, fiscal year ended June 30, 1923 " 870 Conclusion 872 Exhibit A: Power of national banking associations to open and operate offices : 873 R E P O R T OF THE COMMISSIONER OF INTERNAL R E V E N U E : Collections....... 879 Cost of administration 881 Inadequate housing of bureau 881 Income tax unit— Work accomplished. 882 Work conditions, improvements proposed and inaugurated, and prospects for fiscal year 1924 884 Committee on appeals and review ' 886 Estate tax, capital-stock tax, and sales tax unit 887 Personnel 888 Taxes collected ...-.:... / 888 - -Estate tax division 888 Committee on review and appeals.' ". 889 Capital-stock tax division .........: 890 Sales tax division 891 • Miscellaneous unit 892 " Tobacco division 892 Miscellaneous tax division 895 Documentary stamp and special t a x e s . . . : . . : . . . . . . . . . . . . , 896 Playing cards . . . . . . . , 896 CONTENTS. XV R E P O R T OF T H E COMMISSIONER OF I N T E R N A L R E V E N U E — C o n t i n u e d . Miscellaneous unit—Continued. Oleomargarine Adulterated butter Process or renovated butter and mixed Claims Offers in compromise Miscellaneous tax field force Accounts a.nd collections unit Division of field allowances Field procedure division Disbuisemerit division Office accounts and procedure division Stamp division Prohibition unit '. Office of chief, general prohibition agents Office of counsel, prohibition u n i t . Compromises , Claims. Collections Narcotic division Permit division Industrial alcohol and chemical division Audit division Solicitor of Internal Revenue Conference committee Appeals division Administrative division Interpretative division 1 Interpretative division I I Civil division Penal division Special adjustment section Suits and prosecution Bureau and field personnel Statistical tables ; Important decisions of courts in internal-revenue cases flour : Page. 896 897 897 . 897 898 898 898 898 899 900 901 901 902 903 903 904 904 904 907 909 '910 911 .913 913 913 913 914 914 915 919 921 923 924 925 932 SECRETARIES OF THE TREASURY AND PRESIDENTS UNDER V^HOM THEY SERVED. NOTE.—Robert Morris, the first financial of&cer 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 oflBce in 1789. Secretaries of Treasury. Presidents. Washington. Adams Jefferson Madison Monroe Adams, J. Q.. Jackson Van jBuren. Harrison... Tyler Polk.. Taylor Fillmore. Pierce. Alexander Hamilton, New York Oliver Wolcott, Connecticut Oliver Wolcott, Connecticut Samuel Dexter, Massachusetts Samuel Dexter, Massachusetts Albert Gallatin, Pennsylvania Albert Gallatin, Pennsylvania ^ George W. Campbell, Tennessee Alexander J. Dallas, Pennsylvania.. Wm. H. Crawford, Georgia Wm. H. Crawford, Georgia Richard Rush, Pennsylvania 2 Samuel D. Ingham, Pennsylvania». Louis McLane, Delaware Wm. J. Duane, Pennsylvania Roger B. Taney, Maryland ^ Levi Woodbury, New Hampshire... Levi Woodbury, New Hampshire &. Thomas Ewing, Ohio Thomas Ewing, Ohio ^ Walter Forward, Pennsylvania'.... John C. Spencer, New York» Geo. M. Bibb, Kentucky. Geo. M. Bibb, Kentucky Robt. J. Walker, Mississippi ^ Wm. M. Meredith, Pennsylvania Wm. M. Meredith, Pennsylvania Thos. Corwin, Ohio James Guthrie, Kentucky 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 ToJan. 31j1795 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 pleni])otentiary 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 becausei 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 hj.s duties until August 1, 1825. Samuel L. Southard, of New Jersey (Secretary of the Navy), served as ad interim Secretary of the Treasury from March 7 to July 31,1825. 3 Asbury Dickens (Chief Clerk), ad interim Secretary of the Treasury June 21 to August 7,1831. < McClintock Young (Chief Clerk), ad interim Secretary of the Treasury from June 25 to 30,1834. 5 McClintock Young (Chief Clerk), ad interim Secretary of the Treasury from March 4 to 5,1841. 8 McClintock Young (Chief Clerk), ad interim September 13,1841. ^ McClintock Young (Chief Clerk), ad interim March 1 to 7,1843. 8 Spencer resigned as Secretary of the Treasury May 2,1844; McClintock Young (Chief Clerk), ad interim from May 2 to July 3,1844. » McClintock Yo\mg (Chief Clerk), ad interim March 6 to 7,1849. 62166—Fi 1923 2 xvn XVIII SECRETARIES OF T H E TREASURY. Secretaries of the Treasury and Presidents under whom they served—Continued. Presidents. Buchanan..... Lincoln Johnson '.. Grant Hayes Garfield Arthur Cleveland Harrison, Benj Cleveland McKinley. Roosevelt Taft... Wilson Harding Coolidge Secretaries of Treasury. Howell.Cobby Georgia lo :. , Philip F. Thomas, Maryland John A^. Dix, New York Salmon P. Chase, Ohio " Wm. P. .Fessenden, Maine ^^ Hugh McCulloch, Indiana Hugh McCulloch, Indiana ^^ Geo. S. Boutwell, Massachusetts Wm. A. Richardson, Massachusetts Benj. H. Bristow, Kentucky i^ Lot M. Morrill, Maine Lot M. Morrill, Maine John Sherman, Ohio ^s Wm. Windom, Minnesota Wm. Windom, Minnesota Chas. J. Folger, New York le Walter Q. Gresham, Indiana Hugh McCulloch, Indiana Hugh McCulloch, Indiana Daniel Manning, New York Chas." S. Fairchild, New.York Chas. S. Fairchild, New York Wm. Windom, Minnesota " Chas. Foster, Ohio Chas. Foster, Ohio John G. Carlisle, Kentucky John G. Carlisle, Kentucky Lyman J. G age, Illiaois Lyman J. Gage, Illinois L. M. Shaw, Iowa George B. Cortelyou, New York Franklin MacVeagh, Illinois W. G. McAdoo, New York Carter Glass, Virginia David F. Houston, Missoml Andrew W. Mellon, Pennsylvania.. Andrew W. Mellon, Peimsylvania. Term of service. FromIr— Mar. 7^ 1857 Dec. 12}, 1860 Jan. 15), 1861 Mar. 7\ 1861 July 5), 1864 Mar. 9), 1865 Apr. 16), 1865 Mar. 12J, 1869 Mar. 17-, 1873 Jime—4\, 1874 July 7-, 1876 Mar. 41,1877 Mar. 10), 1877 Mar J, 1881 Sept. 20,), 1881 Nov. 14,t, 1881 Sept. 255,1884 Oct. 31L, 1884 Mar. 41,1885 Mar. 8J, 1885 Apr. 1,1887 Mar. 41,1889 Mar. 7J, 1889 Feb. 25), 1891 Mar. 41,1893 Mar. 7,1,1893 Mar. 4V, 1897 Mar. 6), 1897 Sept. 15), 1901 Feb. 1,1902 Mar. 41,1907 Mar. 8?, 1909 Mar. 6), 1913 Dec. 16>, 1918 Feb. 2J, 1920 Mar. 41,1921 Aug. 3;,1923 To— ,, 1860 Dec. 8, :, 1861 Jan. 14, ,, 1861 Mar. 6, -, 1864 June 30, , 1865 Mar. 3, ., 1865 Apr. 15, ., 1869 Mar. 3, ,1873 Mar. 16, :, 1874 June 3, r, 1876 June 20, ; 1877 Mar. 3, ., 1877 Mar. 9, >, 1881 Mar. 3, ; 1881 Sept. 19, ., 1881 Nov. 13, :, 1884 Sept. 4, ., 1884 Oct. 30, ., 1885 Mar. 3, ,1885 Mar. 7, ,1887 Mar. 31, , 1889 Mar. 3, .,1889 Mar. 6, ,1891 Jan. 29, , 1893 Mar. 3, s 1893 Mar. 6, ,1897 Mar. 3, ,1897 Mar. 5, , 1901 Sept. 14, ,1902 Jan. 31, , 1907 Mar. 3, ,1909 Mar. 7, , 1913 Mar. 5, , 1918 Dec. 15, ,1920 Feb. 1, , 1921 Mar. 3, ,1923 Aug. 2, 10 I s a a c T o u c e y , of Connecticut (Secretary of t h e N a v y ) , a c t e d as Secretary of t h e T r e a s u r y a d i n t e r i m D e c e m b e r 10 t o 12,1860. " George H a r r i n g t o n , D i s t r i c t of C o l u m b i a (Assistant Secretary), a d i n t e r i m J u l y 1 t o 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. n Charles F . Conant, of New Hampshire (Assistant Secretary), ad interim June 21 to 30 [July 6], 1876. 16 Henry E. French, of Massachusetts (Assistant Secretary), ad interim March 4 to 7, 1881. 18 Charles E. Coon, of New York (Assistant Secretary), ad interim September 4 to 7, 1884;. Henry F . French, of Massachusetts (Assistant Secretary), ad interim September 8 to 14, 1884; Charles E. Coon ad Interim September 15 to 24,1884. 17 A. B . Nettleton, of Minnesota (Assistant Secretary), ad interim January 30 to February 24, 1891. ASSISTANT SECKETARIES OF T H E TREASUBY. XIX UNDERSECRETARIES OF THE TREASURY AND PRESIDENTS AND SECRETARIES UNDER WHOM THEY SERVED. Presidents. Harding Coolidge .Secretaries. Undersecretaries.! Term of service. ToFrom— July 1,1921 Aug. 2,1923 Aug. 3, 1923 Nov. 17, 1923 Nov. 20, 1923 Mellon........... .S. Parker Gilbert, jr.. New Jersey S. Parker Gilbert, jr.. New Jersey. Mellon.. Mellon.... Garrard B. Winston 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. Term of ser\ace. Tench Coxe, Pennsylvania George R. Cooksey, District of Columbia. From— ToSept. 11,1789 May 8,1792 Mar. 6,1917 Mar. 4,1921 Grlass. Houston. ASSISTANT SECRETARIES OF THE TREASURY AND PRESIDENTS AND SECRETARIES UNDER WHOM THEY SERVED. Presidents. Taylor Filmore Pierce Buchanan Lincoln Secretaries. Meredith Meredith Corwin. Corwin Guthrie. Gruthrie.... Cobb. Cobb Thomas. Dix. Chase Johnson Lincoln Fessenden. McCulloch. McCulloch. Chase Fessenden. McCulloch. McCulloch. Fessenden Johnson McCulloch. McCulloch. Johnson Lincoln Assistant Secretaries.a • Term of service. From— Mar. 12,1849 Charles B. Penrose, Pennsylvania Allen A. Hall, Pennsylvania. . . . . . . Oct. 10, m 9 ToOct. 9,1849 Nov. 15,1850 William L. Hodge, Tennessee Nov. 16,1850 Mar. 13,1853 Peter G. Washington, District of Columbia. Mar. Philip Clayton, Georgia 4,1853 Mar. 13,1857 Mar. 12,1857 Jan. 16,1861 July 11,1865 George Harrington, District of Columbia.* Mar. 13,1861 Maunsell B Field, New York Mar. 18,1864 June 15,1865 William E. Chandler, New Hampshire. Jan. ' 5,1865 Nov. 30,1867 • • 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 estabUshed act Mar. 3,1849; appointed by the Secretary. Act Mar. 3,1857, made the office Presidential. * Act Mar. 14. 1864, provides one additional Assistant Secretary. XX ASSISTANT SECRETARIES OF T H E TREASURY. Assistant Secretaries of the Treasury and Presidents and Secretaries under whom they served—Continued. Presidents. Johnson Grant Johnson Grant Hayes Grant.. Hayes Garfield Arthur Cleveland Hayes Garfield Arthur Cleveland Harrison Cleveland... Harrison Cleveland Harrison Cleveland McKinley Secretaries. McCulloch . . . . . Boutwell. Richardson. Bristow. McCulloch Boutwell Richardson Bristow. Bristow Morrill. Sherman. Bristow Morrill Sherman. Windom. Windom. Folger. Gresham. McCulloch. Manning. Sherman Sherman Sherman Windom. Windom. Folger. Folger Folger Gresham. McCulloch. Manning. Manning Manning Manning Fairchild. Windom. Fairchild Windom. Windom Windom Windom Foster. Windom Foster. Carlisle. Foster Foster Foster Carlisle. Carlisle Gage. Assistant Secretaries. John F. Hartley, Maine From— July 11,1865 May To4,1875 Edmund Cooper, Tennessee Dec. 2 1867 William A. Richardson, Massachusetts. Mar. 20,1869 Frederick A. Sawyer, South Carolina.. Mar. 8,1873 May 31,1868 Mar. 17,1873 June 11,1874 Charies F. Conant, New Hampshire... July 1,1874 Apr. 3,1877 Mar. 4,1875 Aug. 12,1876 June 30,1876 Mar. 9,1885 Apr. 3,1877 Richard C. McCormick, Arizona John B Hawley Illinois Dec. 9,1877 J. Kendrick Upton, New Hampshire.. Apr. 10,1880 Dec. 8,1877 Mar. 31,1880 Dec. 31,1881 Feb. 28,1882 Apr. 17,1884 Apr. 16,1884 Nov. 10,1885 Charies S. Fairchild, New York Mar. 14,1885 William E. Smith, New York Nov. 10,1885 Hugh S. Thompson, South Carolina... July 12,1886 Apr. 1,1887 June 30,1886 Mar. 12,1889 Curtis F. Burnam, Kentucky Henry F. French, Massachusetts John C. New, Indiana Charles E. Coon, New York Isaac N. Maynard, New York Apr. 6,1887 Mar. 11,1889 George H Tichner Illinois George T. Batchelder, New York^ A. B. Nettleton, Minnesota Apr. 1,1889 Apr. 1,1889 July 22,1890 July 20,1890 Oct. 31,1890 Dec. 1,1892 Oliver ly. 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 .A.ct July, 11,1890, provides for an additional Assistant Secretary. Term of service. Apr. 7,1897 ^ J XXI ASSISTANT SECRETARIES OF T H E TREASURY. Assistant Secretaries of the Treasury and Presidents and Secretaries under whom they served—Continued. ^ Presidents. • Cleveland McKinley Cleveland McKinley Roosevelt McKmley Roosevelt McKinley Roosevelt Taft Roosevelt Taft "Wilson Taft Wilson Taft Wilson Harding Wilson Secretaries. Ciirlisle Gage. Oirlisle Gage. Gage....'. Gage Gage. Shaw. Gage Gaee Gage. Shaw. G age 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 McAdoo Glass. McAdoo . Glass. Houston. Mellon. McAdoo Glass. Houston. Term of service. Assistant Secretaries. William E. Curtis, New York From— Apr. 13,1893 To— Mar. 31,1897- Scott Wike,'Illinois July 1,1893 May William B. Howell, New Jersey Oliver L. Spaulding, Michigan Apr. Apr. 7,1897 7,1897 Mar. 10,1899Mar. 4,1905 Frank A. Vanderlip, Illinois Horace A. Taylor, Wisconsin June 1,1897 Mar. Mar- 13,1899 June ... 4,1897' 5,1901 3,1906 Milton E. Ailes, Ohio Mar. 6,1901 Apr. 15,1903 Robert B. Armstrong, Iowa Charles H. Keep, New York James B. Reynolds, Massachusetts Mar. 5,1903 May 27,1903 Mar. 5,1905 Mar. 5,1905 Jan. 21,1907 Nov. 1,1909 John H. Edwards, Ohio July 1,1906 Mar. 15,1908 Arthur F. Statter, Oregon Beekman Winthrop, New York Louis A. Coolidge, "Vfassachusetts Jan. 22,1907 Apr. 23,1907 Mar. 17,1908 Feb. 28,1907 Mar. 6,1909 Apr. 10,1909 Charles D. Norton, Illinois Charles D. Hilles, New York James F. Curtis, Massachusetts Apr. 5,1909 Apr. 19,1909 Nov.- 27,1909 June 8,1910 Apr. 3,1911 July 31,1913 A. Piatt Andrew, Massachusetts Robert 0 . Bailey, Illinois June Apr. Sherman P. .Allen, V e r m o n t . . . . . . July 20,1912 Sept. 30,1913 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 24,1913 1,1913 1,1913 24,1914 17,1914 17,1917 22,1917 Feb. Aug. Oct. Jan. Mar. Aug. Nov. Oct. 5,1917 8,1910 lulyj 3,1912 4,1911 Mar.J 3,1913 2,1914 9,1914 1 1917 26 1917 15,1917 28,1918 20,1919 James H. Moyle, Utah^ Aug. 26,1921 Russell C. Leflangwell, New York Oct. 30,1917 July 5,1920 6 Act Oct. 6,1917, provided for two additional Assistant Secretaries for dmation 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 Coolidge Harding Coolidge Harding Coolidge Secretaries. McAdoo Glass. McAdoo Glass. Houston. Glass Houston. Glass Houston. Houston Mellon. Houston... Mellon. . ' Houston Mellon. Houston Mellon Mellon Mellon Mellon Mellon 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 Nov. 15,1920 Apr. 14,1921 S. Parker Gilbert, jr., New Jersey 7 . . . July .6,1920 June 30,1921 Ewing Laporte, Missouri Dec. 4,1920 May 31,1921 Angus W. McLean, North Carolina.... Eliot Wadsworth, Massachusetts Eliot Wadsworth, Massachusetts Edward Clifford, Illinois Elmer Dover, Washington McKenzie Moss, Kentucky .. ... McKenzie Moss, Kentucky. Garrard B. inston, Illinois. Garrard B. Winston, Illinois« Dec. 4,1920 Mar. 16,1921 Aag;. 3, 1923 May 4,1921 Dec. 23,1921 May 23,1923, Aug. 3, 1923 July 9, 1923 Aug. 3, 1923 Mar. 4,1921 Aug. 2, 1923 ^ Became Undersecretary July 1,1921 *8 Became Undersecretary November 20, 1923 . Term of service. July 9, 1923 July 25,1922 Aug. 2, 1923 Aug. 2, 1923 Nov. 19,1923 ANNUAL REPORT ON THE FINANCES. TREASURY. DEPARTMENT, Washington^ November S O y l 9 p . SIR: I have the honor to make the following report: In my annual report addressed to you one year ago I waa able to say that a substantial revival of business had taken place from the depressed conditions of the year preceding, and I now have the satisfaction of recording that the year covered by this report has witnessed more complete recovery. Labor has been in strong demand and in most localities fully employed. I n the principal manu-. facturing industries the volume of production has been the greatest in our history. The traffic handled by the railroads has surpassed all records. The activity in building operations which developed in 1922 has continued at a rate which will probably make the total expenditures in this line in 1923 greater than in any previous year. The railroads have made larger capital outlays for new equipment than in many years, besides liberal expenditures for bringing old equipment to a high standard of efficiency. The automotive industries have also been especially noteworthy for prosperity, and in this connection it is proper to add that highway construction has been an important factor in the employment situation. These have been the outstanding features of our industrial revival, their influence extending to all the other industries and having much to do with the general recovery of confidence. This recovery may be said to have reached its climax for the year in the early part of April, when the usual spring demand for labor added'to a demand which already equaled the supply, together with increased forward purchases of goods, started wages and prices upward so sharply as to occasion some apprehension that the countr}^ was starting upon a new course of inflation. The conservative instinct of the business, community reacted against this tendency, vnth the result that although consumption and industrial activity have been well maintained, the rise of prices has been checked, speculative tendencies eliminated, and the business situation steadied and strengthened in consequence. Although in some sections of the country banks are still burdened with slow loans taken when the price level was higher than at present, this condition has improved decidedly in the past year, and the general banking situation is very satisfactory. In view of the great expansion of business which has occurred in the past year, I 2 REPORT ON T H E FINANCES. 1 the expansion of credit has been small, and at this time there is no question as to credit being in ample supply to meet the needs of business. The crisis of 1921 was one of the most severe this country has ever experienced, due to the fact that the conditions were world-wide, with trade • everywhere dislocated atid industry in distress. This state, of affairs was the natural outcome of the great war and the social disturbances and international controversies which ensued. N'ot in the history of the modern world, since the countries have become in high degree mutually dependent, has such a state of confusion been known. The conditions were unprecedented and, therefore, the uncertainties were many and contributed to a state of alarm and demoralization. Out of these conditions this country in the last two years has made a remarkable recovery, and one which should inspire confidence for the future. I t has been made evident that with fairly balanced relations between our own industries this country may enjoy a good degree of prosperity even when very unsatisfactory conditions prevail abroad. Never before has so rapid a recovery been made from a major crisis. I t is true that the recovery has not been uniform in all the industries and that the ideal equality of purchasing power which is the condition of full prosperity has not been attained. The farmers as a class are below the workers of the other industries in purchasing power, partly because farm products always have formed our chief exports and partly because the war itself created a deficit in certain classes of construction work, and thus supplied the basis of this industrial revival. All signs go to show, however, that agriculture is regaining its position. The surplus of the leading crops this year is comparatively small, and with further readjustments, together with the steady growth of population which has added about 13,000,000 to our numbers since the war began, it may be confidently expected that agriculture will soon secure that fair share of the general prosperity which all desire it to have. I n looking forward to 1924 it appears that the factors which have been most influential in the revival that has taken place are likely to remain effective, at least in considerable degree. I t m a y be that the country will not build as many dwelling houses or freight, cars as in 1923, but there is reason to believe that much construction work is under consideration and with stable conditions will go forward. The attitude and circumstances of the railroads will be an important factor in the situation. They are large consumers ordinarily of iron, steel, and all construction materials, and they have not made up in one year the accumulated deficit in construction since the beginning of the war. The country has benefited in marked degree during the past year, not only from the direct effects of their liberal expenditures upon the emplojonent situation but from the SECRETARY OF THE TREASURY. S results in improved transportation service. There is one unsatisfactory feature about the large capital outlays upon the railroads in the past year, and that is that they have been almost wholly provided by borrowing and are represented by bond issues. I t is evident that the railroads can not be permanently financed in this manner. Unless a proportion of the new capital is provided in the form of proprietary investment, the credit of the companies will suffer, interest rates upon their offerings will have to be advanced, and in the end further borrowing will become impracticable. The public is interested in maintaining the credit and the service of the roads, and especially interested now that their expenditures shall be in 1924, as in 1923, a strong supporting element in the general employment and business situation. The companies have been operating this year under conditions more than ordinarily favorable to earnings, owing to the heavy volume of traffic, but they have not prospered alike in aU sections of the country. The Interstate Commerce Commission is in possession of all the facts as to their earnings and is empowered to make any adjustment of rates that conditions seem to warrant. The transportation act of 1920 undoubtedly has strengthened the credit of the railroads and aided them in obtaining capital under market conditions in many respects unfa^vorable. I t would be unfortunate to have the act altered at this time in any way likely to handicap the companies in raising more capital. I am dealing with the subject of Federal taxation in another place, but it does not seem inappropriate here to refer briefly to the increasing burden of local taxation. These taxes are affecting land values unfavorably and in this causing a state of discontent which does not always place the blame where it belongs. One cause, of these high local taxes is to be found in the borrowing of local branches of government, stimulated by the ready market for tax-exempt securities^ resulting from the high surtaxes upon incomes. The statistics of local indebtedness show that the interest burden is becoming a very serious one in local budgets. TAXATION. The question of reduction of taxation is one which should have the serious consideration of Congress. Before the period of the war taxes as high as those now in effect would have been thought fantastic and impossible of payment. As a result of the patriotic desira of the people to contribute to the limit to the successful prosecution of the war, high taxes were assessed and ungrudgingly paid. Upon the conclusion of peace and the gradual removal of war-time conditions of business, the opportunity is presented to Congress to make the tax structure of the United States conform more closely to normal con % REPORT O.N T H E FINANCES. ditions and to remove the inequalities in that structure which directly injure our prosperity and cause strains upon our economic fabric. In considering any reduction the Government must always be assured that taxes will not be so far reduced as to deprive the Treasury of sufficient revenue with which properly to run its business with the manifold activities now a part of the Federal Government and to take care of the public debt. Tax reduction must come out of surplus revenue. I n determining the amount of surplus available these factors control: The revenue remaining the same, an increase in expenditures reduces the surplus, and expenditures remaining the same, anything which reduces the revenue reduces the surplus. The reaction, therefore, of the authorization of extraordinary or unsound expenditures is twofold—it serves, first, to raise the expenditures and so narrow the margin of available surplus; and, second, to decrease further or obliterate entirely this margin by a reduction of the Treasury's revenues through the disturbance of general business, which is promptly reflected in the country's income. On the other hand, a decrease of taxes causes an inspiration to trade and commerce which increases the prosperity of the country so that the revenues of the Government, even on a lower basis of tax, are increased. Taxation can be reduced to a point apparently in excess of the esti- . mated surplus because by the cumulative effect of such reduction, expenses remaining the same, a greater revenue is obtained. High taxation, even if levied upon an economic basis, affects the prosperity of the country because in its ultimate analysis the burden of all taxes rests only in part upon the individual or property taxed. I t is borne by the ultimate consumer. High taxation means a high price level and high cost of living. A reduction in taxes, therefore, results not only in an immediate saving to the individual or property directly afi'ected, but an ultimate saving to all people in the country. I t can safely be said, that a reduction in the income tax reduces expenses not only of the 7,000,000 income taxpayers but of the entire 110,000,000 people in the United States. The results which flow from an economically unsound policy of taxation are not as easily visualized as the results of high taxation taken alone because the efi'ects are indirect. These effects are a most insidious menace to a continued prosperity. In m.y previous reports I forecasted that high surtaxes were driving capital out of business productive of revenue to the Government. An examination of Table II, page 12, shows the progressive diminution in the number of taxpayers with incomes in excess of $300,000, and confirms my forecast. The returns of 1921, which have recently been made available, give this figure as 246, as compared with 395 the year before. SECRETARY OF THE TREASURY. 5 While it is the policy of the Treasury not to make public information with respect to the incomes of particular individuals, still the publication in the newspapers of the. probate of the estates of several wealthy men who have recently died permits comment on the type of investment into which the decedents appear to have been driven by the high surtaxes. These cases are remarkable for the way they show how men noted for their business ability and initiative have withdrawn their capital from productive business and placed it in municipal and other tax-free bonds. (For detailed statements of the Treasury's position with reference to tax-exempt securities see Exhibits 71-73, pages 376 to 392 of this report.) This is but one phase of the income-tax avoidance. Tax-exempt securities are not the only means by which the wealthy taxpayer, within his strictly legal rights, avoids a burden which appears to him to be confiscatory. I t has been the history of taxation throughout the world that means have always been found by the ingenuity of the citizen to avoid taxes inherently excessive. If the present unsound basis of high surtaxes is maintained, they will continue to become progressively less productive. On the other hand, a decrease in the surtaxes to a more reasonable amount would result not only in a more economically sound structm-e, but would utimately yield more in revenue to the Government out of the lower taxes than the Government receives out of the higher taxes., The Government actuary has estimated that if the recommendations on tax reduction contained in my letter to Mr. Green are adopted, in the second year after operation, any loss in revenue on incomes in brackets in excess of $100,000 will not only be overcome but additional revenue from these brackets will flow into the Government. His detailed estimate is as follows, and should be read in connection with the table appearing at the end of my letter to Mr. Green (p. 12): Estimated effect upon the revenue of the proposed changes in the individual income tax law. Income tax brackets. N e t reduction in t a x w h e n all c h a n g e s h a v e been in full effect.—On i n c o m e for calendar vear— 1924, collected 1925. $l,00O-S6,000 ?6,00O-Sl0,000 $10,000-520,000.... $20,000-$50,000.... $50,000-$100,000... $100,000-$150,000.. $150,000-5200,000.. S200,00O-$300,000.1 $300,000-5500,000.. $500,000-51,000,000 O v e r 51,000,000... Total ^ Loss. 1925, collected 1926. 996,000 719,000 1,406,000 1.550,000 544,000 550,000 $81,363,000 49,485.000 16,507,000 26,866,000 20,809,000 Net increase. 142,000 8,000 8,000 8,000 85,000 20,000 1 222,900,000 1194,759,000 592,750,000 52,100,000 18,260,000 30,380.000 23,645', 000 N e t increase in t a x collected, 1926 over 1925. 511,387,000 2,615,000 1,753,000 3,514,000 2,836,000 1,138,000 727,000 ,1,414,000 1,558,000 629,000 570,000 28,141,000 b REPORT ON T H E FINANCES. I have considered this problem in the first instance solely from the standpoint of the Government's revenue and it is clear that from this standpoint alone a reduction in surtaxes is necessary. The other viewpoint, however, is much more important. High surtaxes drive capital from productive business to tax-exempt securities or other lawful methods of avoiding a taxable profit equally destructive of business advancement. The farmer is now complaining, and rightly, of the high freight rates and the high cost to him of that which he has to buy. The railroads of this country require a billion dollars a year of new capital in order that they may.properly maintain their service and at the same time in keeping with the country's growth conduct the business of transportation upon such an economical basis as will permit the reduction of rates. The cost of capital is, therefore, one of the largest items of expense in the conduct of railroads. Nothing has so contributed to this additional cost of capital as the high surtaxes which have driven the large investors from railroad to taxexempt securities. I n like manner, the demands of capital for a higher return by reason of the high surtax rates have raised the cost of all manufactured products. The constitutional amendment removing in the future the taxexempt features of municipal bonds, which was introduced at the last session of Congress, would bring about a most desirable readjustment of the relation between the States and the Nation. Such an amendment, however, would not affect the already existing mass of tax-exempt securities aggregatiug about $11,000,000,000, and these would continue during their life to be a means of escape from taxation. Such an amendment has yet to pass Congress and be ratified by the States. Its effect will not be immediate. A reduction of surtaxes destroys much of the desirabflity of the tax-exempt feature of these securities, is within the sole power of Congress, and would promptly divert capital to productive investment, such as railroad securities, which tend to the reduction of costs, thus giving relief to the farmer and consumers generally. On November 10, 1923, I addressed to the Hon. Wflliam R. Green, acting chairman of the Committee on Ways and Means of the House of Representatives, a communication which expressed the considered recommendations of the Treasury for a reduction of taxes and for a reestablishment of a more sound economic policy for the country. The letter is as follows: TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, Washington, November 10, 1923. DEAR M R . GREEN : I n accordance with t h e request which you made shortly after t h e adjournment of Congress, the Treasury has been engaged for the past few months in considering the possibilities, of tax revision and in developing recommendations for the simplification of the law. The situation has developed more favorably than SECRETARY OF THE TREASURY. 7 was anticipated, and I am now presenting to you a comprehensive program, to which I hope the Committee on Ways and Means will be able to give consideration at the outset of the legislative session. The fiscal years 1922 and 1923 have each closed with a surplus of about $310,000,000 over and above all expenditures chargeable against ordinary receipts, including the sinking fund and other similar retirements of the debt. This has been possible only through the utmost cooperation between the Executive and Congress, as well as among the executive departments and establishments, all of whom have united in a sincere effort to reduce the expenditures of the Government. At the same time there has been a substantial amount of realization upon securities and other assets remaining over from the war, and the Treasury has succeeded in collecting customs and internalrevenue taxes in amounts somewhat exceeding original expectations. The result is that the Government of the United States is firmly established on the basis of having balanced its budget each year since the cessation of hostilities with a reasonable surplus each year after providing for fixed^debt charges like the sinking fund, and stands squarely committed to the policy of including these fixed charges on account of the public debt in its ordinary budget each year, thus assuring an orderly reduction of the war debt out of current revenues. What has been done during the two years since the establishment of the Budget system shows clearly what united effort can accomplish, and gives every reason for hope that the task to which the administration has set itself for this fiscal year can be successfully performed, namely, the reduction of the ordinary expenditures of the Government to a total of not more than $3,500,000,000, of which about $500,000,000 will be fixed charges on account of the sinking fund and other retirements of the debt. To do this means reductions of about $170,000,000 in the estimates of expenditures submitted by the spending departments and establishments and the exercise of continued pressure all along the line for the utmost economy and efliciency in the operations of the Government. Having these things in mind, the Treasury has been canvassing the estimates for the present fiscal year and for the succeeding fiscal years with a view to determining on the^ one hand what further reductions in expenditure it would be safe to count on in developing a tax-revision program, and on the other hand what receipts might reasonably be expected on the basis of existing law, assuming that no changes were to be made in internal taxes. In doing this it has had to keep in mind that under present conditions receipts from customs are abnormally high and that surplus war supplies have now been for the most part liquidated, leaving relatively little to expect on this account in the years to come. It has also had to keep in mind that many of the internal-revenue taxes, as, for example, the higher brackets of the surtax are so rapidly becoming unproductive that it is unsafe to assume that even with no changes in the law the revenues from internal taxes would be maintained. After taking into account all these considerations, and maldng the most conservative estimates about the yield of existing taxes and the possibilities of further reductions in expenditure, it appears that for this year, and for the next four or five years, there should be a surplus of something over $300,000,000 a year over and above all expenditures chargeable to the ordinary budget, including the fixed-debt charges payable out of current revenues. This gives a reasonable margin not merely for tax revision but also for tax reduction. , On this basis the Treasury has the following recommendations to make: 1; Make a 25 per cent reduction in the tax on earned income.—The fairness of taxing more lightly income from wages, salaries, and professional services than the income from a business or from investment is beyond question. In the first case, the income is uncertain and limited in duration; sickness or death destroys it and old age diminishes it. In the other the source of the income continues; it may be disposed of during a man's life and it descends to his heirs. It is estimated that this amendment 8 REPORT ON T H E FINANCES. will mean a loss in revenue of about $97,500,000 a year, the greater part of which falls in the lower income brackets. 2. Where the present normal tax is 4 per cent reduce it to 3 per cent, and ivhere the present normal tax is 8 per cent reduce it to 6 per cent.—This affects all personal incomes and the loss of revenue comes largely from the lower brackets. I t is estimated that this will mean a loss in revenue of $91,600,000 a year. .3. Reduce the surtax rates by commencing their application at^lO,000 instead of $6,000^ and scaling them progressively upwards to 25 per cent at f 100,000.—This will readjust the surtax rates all along the line, and the Treasury recommends the readjustment not in order to reduce the revenues b u t as a means of saving the productivity of the surtaxes. I n the long run it will mean higher rather than lower revenues from the surtaxes. At the outset it may involve a temporary loss in revenue, b u t the Government Actuary estimates that even during the first year, if the revision is made early enough, the net loss in revenue from iall the changes in the surtaxes would be only about $100,000,000, and that in all probability the revenue from the reduced rates will soon equal or exceed what would accrue at the present rates, because of the encouragement which the changes will give to productive business. The readjustment of the surtaxes, moreover, is not in any sense a partisan measure. I t has been recommended, on substantially this basis, b y every Secretary of t h e Treasury since the end of the war, irrespective of party. The present system is a failure. I t was an emergency measure, adopted under the pressure of war necessity, and not to be counted upon as a permanent part of our revenue structure. For a short period the surtaxes yielded much revenue, b u t their productivity has been constantly shrinking and the Treasury's experience shows that the high rates.now in effect are progressively becoming less productive of revenue. See Table I I , hereto attached. The high rates p u t pressure on taxpayers to reduce their taxable income, tend to destroy individual initiative and enterprise, and seriously impede the development of productive business. Taxpayers subject to the higher rates can not afford, ^or example, to invest in American railroads or industries or embark upon new enterprises in the face of taxes that will take 50 per cent or more of any return that may be realized. These taxpayers are withdrawing their capital from productive business and investing it instead in tax-exempt securities and adopting other lawful methods of avoiding the realization of taxable income. The result is to stop business transactions that would normally go through, and to discourage men of wealth from taking the risks which are incidental to the development of new business. Ways will always be found to avoid taxes so destructive in their nature, and the only way to save the situation is to p u t the taxes on a reasonable basis that will permit business to go on and industry to develop. This, I believe, the readjustment herein recommended will accomplish, and it will not only produce larger revenues b u t at the same time establish industry and trade on a healthier basis throughout the country. The alternative is a gradual breakdown in the system and a perversion of industry that stifles our progress as a nation. The gi'owth of tax-exempt securities, which has resulted directly from the high rates of surtax, is at the same time encouraging extravagance and reckless expenditure on the part of local authorities. These State and local securities will ultimately have to be paid, principal and interest, out of taxes, thus contributing directly to the heavy local taxation wliich bears so hard on the farmers and small property owners. There is no immediate remedy, for this within the power of Congress except the readjustment of the surtaxes on a basis that will permit capital to seek productive employment and keep^ it from exhausting itself in tax-exempt securities. The productive use of capital in our railroads and industries will also tend to bring lower costs for transportation and manufactured products, thus helping to relieve the farmer from the maladjustment from which he now suffers. SECRETARY OF THE TREASURY. 4. Limit the deduction of capital losses to 12\ per cent of the loss.—The present revenue law limits the tax on capital gains to 12J per cent but puts no limit on the capital losses. It is believed it would be sounder taxation policy generally not to recognize either capital gain or capital loss for purposes of income tax. This is the policy adopted in practically all other countries having. income-tax laws, but it has not been the policy in the United States. In all probability, more revenue has been lost to the Government by permitting the deduction of capital losses than has been realized by including: capital gains as income. So long, however, as our law recognizes capital gains and capital losses for income-tax purposes, gain and loss should be placed upon the same basis, and the provision of the 1921 act taxing capital gains at 12^ per cent should be extended to capital losses, so that the amount by which the tax may be reduced by the capital loss will not exceed 12^ per cent of the loss. It is estimated that this will increase the revenues by about $25,000,000. 5. Limit the deductions from gross income for interest paid during the year and for losses not of a business character to the amount the sum of these items exceeds tax-exempt income of the taxpayer.—The 1921 act provides that interest on indebtedness to acquire or carry tax-exempt securities is not deductible. This provision is ineffective because a taxpayer may purchase tax-exempt securities for cash and borrow money for other purposes. It is felt also that so long as a taxpayer has income which is not reached for taxation, he should not be permitted to deduct his non-business losses from the income which is taxable, but should be restricted in the first instance to a deduction of these losses from his non-taxable income. The estimated increase of revenue from this source is $35,000,000. 6. Tax community property income to the spouse having control of the income.—In some States the income of the husband is a joint income of the husband and wife, and each, therefore, is permitted to file a return for one-half of the income. This gives an unfair advantage to the citizens of those States over the citizefis of the other States of this country, and this amendment seeks to restore the equality. It is estimated that it will increase revenues by $8,000,000. So much for the income-tax recommendations, which should become effective January 1, 1924. In order that you may have before you a clear view of the effect of these recommendations as applied to incomes in the various brackets, I am attaching a table, prepared by the Government Actuary, showing the estimated results of the proposed changes in the calendar year 1925, on the basis of the taxable year 1924. The schedule shows a loss of revenue of about $92,000,000 in the brackets under $6,000, and a further loss of revenue of about $52,000,000 in the next bracket of $6,000 to $10,000. In short, about 70 per cent of the reduction would be in the bracket,s of $10,000 or less, and less than 5 per cent would fall in the brackets over $100,000. To show the effect of the proposed changes on the income of a typical salaried taxpayer, married and having two children, I call your attention to the following comparative figures: Income. $4,000 5,000 6,000 7,000 8,000 1 . 9,000 10,000 Present tax. S28.00 68.00 128. 00 186. 00 276. 00 366. 00 456. 00 Proposed tax. S15. "75 38.25 72.00 99.00 144.00 . 189.00 234. 00 Saving t o taxpayer. ( 1 S12.25 i 29.75 1 56.00 87.00 332.00 177.00 222.00 1 i 1 i 7. Repeal the tax on telegrams, telephones, and leased wires.—This is the last of the transportation taxes established during the war, is a source of inconvenience to every person using the telephone or telegraph, and should now be eliminated from the tax system. This would mean a loss in revenue of about $30,000,000 a year. 10 REPORT ON T H E FINANCES. 8. Repeal the tax on admissions.—The greater part of this revenue is derived from the admissions charged b y neighborhood moving picture theaters. The tax is, therefore, paid b y the great bulk of the people whose main source of recreation is attending t h e movies in the neighborhood of their homes. This would mean a loss in revenue of about $70,000,000. 9. Miscellaneous nuisance taxes.—^Your committee may wish to consider the elimination of various small miscellaneous taxes which have an inconsiderable bearing on the general revenue of the Government, b u t which are a source of inconvenience to taxpayers and difficult to collect; and possibly there are some articles of jewelry which according to our standard of living can not properly be denominated luxuries, such as, for instance, ordinary-table silver or watches, which you may wish to exempt from the general tax on jewelry. There is not enough margin of revenue available to permit the repeal of the special taxes which are proving productive, b u t the law could be revised to good advantage and some of the nuisance taxes repealed without material loss of revenue. 10. I n addition to the specific recommendations which directly affect Government revenues, there should be amendments to strengthen the act and eliminate methods heretofore used b y taxpayers to avoid imposition of the tax. The exact amount of additional revenue to the Government which will be brought in b y these amendments can not be estimated, b u t certainly the amendments Avill reach much income that heretofore has escaped taxation. 11. .Establish a Board of Tax Appeals in the Treasury but independent of the Bureau of Internal Revenue, to hear and determine cases involving the assessment of internal-revenue taxes.—This will give an independent administrative tribunal equipped to hear both sides of the controversy, which will sit on appeal from the Bureau of Internal Revenue and whose decision will be conclusive on both the bureau and the taxpayer on the question of assessment. The taxpayer, in the event that decision is against him, will have to pay the tax according to the assessment and have recourse to the courts, while the Government, in case decision should be against it, will likewise have to have recourse to the courts in order to enforce collection of the tax. 12. Changes should be made in the present law to simplify, administration, make the law more easily understood, and permit a prompt determination of liability in a manner more satisfactory to the taxpayer. I n order that you may see the effect on Government revenues of the above recommendations, I submit the following figures as to the estimated result of these changes: Decrease (in millions of dollars). Reduction of 25 per cent in tax on earned income... Reduction in normal tax Readj ustment of surtax rates Capital loss limited to 12^ per cent '. Interest and capital loss deductions limited Community property amendment Repeal of telegraph and telephone tax Repeal of admissions tax 97 92 102 Total. 391 68 Net loss. 323 Increase (in millions of dollars). 25 35 68 The benefits of the reduction will be distributed among-all classes of taxpayers, and the revision generally will help to free business and industry of vexatious interference and encourage in all lines a more healthy development of productive enterprise. The present burden of taxation is heavy. The revenues of the Government are sufficient to justify substantial reductions and the people of the country should receive 11 SECRETARY OF THE TREASURY, t h e benefits. No program, however, is feasible if t h e Government is to be committed to new and extraordinary expenditures. The recommendations for tax reduction set forth in this letter are only possible if the Government keeps within the program of expenditure which the Bureau of the Budget has laid down at t h e direction of the President. New or enlarged expenditures would quickly eat u p t h e margin of revenue which now appears to be available for reducing the burden of taxation, and to embark on any soldiers' bonus such as was considered in the last Congress or any other program calling for similarly large expenditure would make it necessary to drop all consideration of tax reduction and consider instead ways and means for providing additional revenue. A soldiers' bonus would postpone tax reduction not for one b u t for many years to come. I t would mean an increase rather than a decrease in taxes, for in the long run i t could be paid only out of moneys collected by the Government from the people in t h e form of taxes. Throughout its consideration of t h e problem the Treasury has proceeded on the theory that the country would prefer a substantial reduction of taxation to the increased taxes that would necessarily follow from a soldiers' bonus, and I have faith to believe that it is justified in t h a t understanding. Certainly there is nothing better calculated to promote the well-being and happiness of the whole country than a measure that will lift, in some degree, the burden of taxation that now weighs so heavily on all. Very truly yours, A. W. MELLON, Secretary of {he Treasury. Hon. WILLIAM R . G R E E N , Acting Chairman, Committee on Ways and Means^ House of Representatives, Washington, B . C . T A B L E I. -Estimated effect upon the revenue of the proposed changes i n the individual income tax law. Loss in tax when all changes are in full effect. On income for calendar year 1924; tax collected 1925. Income tax brackets. $1,000-S2,000 $2,000-$4,000 $4,000-16,000 $6,000-$10,000 -$10,000-$20,000 $20,000-S50,000 $50,000-$100,000.... $100,00(>-$150,000... $150,000-$200,000... ^200,000-^300,000 . . $300,000-1500,000... $500,00{>-$l,000,000. Over $1,000,000..-. Number paying tax in each bracket. Normal tax (loss). Surtax (loss). 7,308,200 4,658,200 $64,500,000 1,158,200 558,200 16,100,000 $17, 500; 228,200 2,000,1,000 ' 400, 80,200 1,300,1,000 100, 16,500 4,500,1,000 100, 3,620 1,300,1,00,0 100, 1,430 550,1,000 600, 840 450,1,000 400, 380 400,1,000 100, 150 300,1,000 200, 30 200,1,000 300, Jam. Loss. Earned income at 75 per cent of rates (loss). Capital provision (gain). Certain deducComtions munity Net limited property- reduction to nonproin tax taxable vision collected. income (gain). (gain). $31,250,000 $1,000,000 $2,000,000 20,000, 14,000, 25,000, 6,875, 106, 69, 56, 50, 44, 50, 500, 500, 1,000, 2,000, 4,000, 3,000, 3,000, 3,500, 3,000, 3,500, 000, 500, 500, 000, 000, 500, 500, 500, 000, 500, $92,760,000 52,100,000 $140,000 18,260,000 2,520,000 30,380,000 3,830,000 23,645,000 1,510,000 996,000 719,000 1,406,000 1,550,000 544,000 550,000 25,000,000 35,000,000 8,000,000 91,600,000 101,800,000 97,500,000 222,900,000 This table shows the estimated gain or loss in revenue over that estimated under the present law, due to the proposed changes.in the revenue act of 1921, and allows for the estimated increase in incomes by reason of the readjustment of taxes. The figures opposite each income tax bracket cover the total estimated receipts within that bracket. 62166—FI 1923^ 3 12 ' REPORT ON T H E FINANCES. ' TABLE II.—Table showing decline of taxable incomes over $300,000. Number of returns. . Year. 1916........ 1917........ 1918 1919 1920.... 1921 All classes. Incomes over $300,000. 437,036 3,472,890 4,425,114 5,332,760 7,259,944 6,662,176 1,296 1,015 627 679 395 246 Net income.' All classes,. Incomes over . $300,000.. $6,298,577,620 $992,972,986 13,652,383,207 731,372,153 ,15,924,639,355 .401,107,868 19,859,491,448 440,011,589 23,735,629,183. 246,354,585 19,577,212,528 153,534,305 Dividends and interest on investments. All classes. Incomes over $300,000. $3,217,348,030 3,785,557,955 3,872,234,935 3,954,553,925 4,445,145,223 4,167,291,294 $706,945,738 616,119,892 344,111,461 314,984,884 229,052,039 155,370,228 .'•. While the foregoing letter does not cover estate taxes, attention should ultimately be given to reductions in these taxes also. Every estate now pays tribute to at least two governmental authorities, the Federal Government and the State of the domicile of the decedent. I t often happens that a particular asset is taxed also in one or more other States. The cumulative effect is confiscatory. Such taxes usually have to be paid in cash and a man's life work in the building up of a. business is often lost to his heirs. I t should be remembered also that estate taxes come not out of income but out of capital. In pending such taxes the Federal Government and the States are living on the country's capital, and by just so much are reducing the country's future earning power. While the States should do their share in the reduction of these taxes, the Federal tax is very heavy and could be lightened with benefit to our people. There is one feature connecited with such taxation which is not commonly understood. Values of property in our economic structure are intricately interwoven, and on these values is based credit. When one of these values is struck down it drags with it many other values. The facts that inheritance taxes are capital taxes and can not be paid in kind require a forced realization of a particular property, which greatly destroys its value and collaterally affects the value of all other properties. In time this feature may become a serious menace to our prosperity. RECEIPTS AND EXPENDITURES. In spite of the unfavorable outlook at the beginning of the' fiscal year 1923j the Treasury was able to balance the budget and close the year with a surplus of $309,657,460, on the basis of daily Treasury statements. Total ordinary receipts for ;the year amounted to $4,007,135,480, while total expenditures chargeable against ordinary receipts amounted to $3,697,478,020. Budget estimates at the beginning of the year indicated a deficit of about $822,000,000, and the fortunate result of turning an apparent deficit into an actual surplus was due, in large part, to increased revenues from internal revenue and customs, and in lesser degree, to decreases in the general expenditures of the Government. In fact total receipts of the Government for the year were approximately $768,000,000 greater than originally estimated and expenditures were about $364,000,000 less than SECRETARY OF T H E DIAGRAM TREASURY. ^ • ORDINARY RECEIPTS OF'THE GOVERNMENT FISCAL YEAR ENDED JUNE 30,1923 TOTAL - S 4 , 0 0 7 , 1 3 5 , 4 8 1 . 13 14 REPORT" ON ' T H E FINANCES,. DIAGRAM 2 GOVERNMENT EXPENDITURES CHARGEABLE AGAINST QRDINARV R E C E I P T S FISCAL YEAR ENDED JUNE 3 0 J 9 2 3 TOTAL = S 3 , 6 9 7 , 4 7 8 , 0 2 0 16 SECRiBTAiiY OF T H E TREASURY. estimated. Customs receipts during the year were much larger than for any previous year i n the history of the Government, aggregating $561,928,867, as compared with $356,443,387 during the fiscal year 1922, the previous high record. Income and profits tax receipts also exceeded expectations, aggregating $1,678,607,428, while niisbeUaneous internal-revenue, receipts amounted to $945,865,333. While substantial savings were made in the general expenditures of the Government, the greater part of the reduction in expenditm^es was due to the fact that the Shipping Board and Emergency Fleet Corporatioji, and operations under the Railroad Administration and the transportation act of 1920 as amended, did not call for the amount of expenditures originally estimated. A detailed statement of receipts and expenditures during the fiscal year 1923, as compared with 1922, appears on pages 114 to 127 of this report. Of the total expenditures, $402,850,491 were on account of the sinking fund and other debt retirements chargeable against ordinary receipts. This means that the public debt has been reduced during the year by V$402,850,491 out of the ordinary budget. A further reduction of $210,823,852 was accomplished out of the surplus, making the total debt reduction for the year $613,674,343. The balance in the general fund of the Treasury at the end of the year stood at $370,939,121, as compared with $272,105,513 on June 30, 1922, an increase of $98,833,608. Diagrams 1 and 2, on pages 13 and 14, show the percentage distribution of receipts and expenditures for the fiscal year under review. AccomplisJiments during the fiscal years 1921-1923-. The United States Government is thus firmly established on the basis of balancing its budget each year, current receipts against current expenditures including the sinking fund and all other fixed debt charges. The tremendous reduGlion in Government expenditures since 1919 and the sound basis on which the Government's finances have been established are illustrated in diagram 3, page 16, showing cash receipts and expenditm^es each fiscal year from 1913 to 193.3. The following .table shows for,the years 1921 to 1923 the surplus of ordinary receipts over expenditures chargeable against ordinary receipts, and public debt retirements chargeable against ordinary receipts: FisCial year ended June 30— 1921 1922 1923 : Total , Surplus. Debt retirements chargeable against ordinary receipts. Total, ^86,724,000 • 1 $422,282,000 422,695,000 .313,802,000 402,850,000 309,657,000 $509,006,000 736,497,000 712,507,000 1,247,827,000 1,958,010,000 710,183,000 ^ Computed on the present basis and not as originally stated. Of the aggregate surplus of $710,183,000 for these years, $696,945,000 was used to eJffect a rednction in the public debt and the remainder, $13,238,000, was added to the balance in the general .16 REPORT ON: T H E FINANGES. fund of the Treasury. Decreases in the gross debt during the three fiscal years were as follows: ' . ; Fiscal year ended June 30— 1921 1922 1923 . . Debt reduction. . ... : ---- Total ---- 1 $321,871,000 1,011,069,000 613,674,000 1,949,614,000 I Includes a reduction of $4,842,000 on account of a revised estimate of the amouat of fractional currency outstanding. As a result of these retirements the gross public debt was $22,349,707,000 on June 30, 1923, compared with $24,299,321,000 on June 30, 1920. On October 31, 1923, the debt had been further reduced to $22,082,209,000. DIAGRAM 3 GOVERNMENT RECEIPTS AND. EXPENDITURES FISCAL YEARS l9l3 to 1923 It will be noted from the diagram referred to above. No. 3, that these results have been accomplished in the face of a gradual decline in revenues since 1920. Diagram No. 4, page 17, shows receipts from customs and internal revenue each fiscal year from 1913 to 1923, and illustrates fiu*ther the reductions in internal-revenue receipts during the past three years. As a result of the revenue act of 1921, internalrevenue receipts during the fiscal year just closed, it is estimated, were approximately $800,000,000 less than they would have been at the rates contained in the old law. Income and profits taxes in 1923 were $2,266,000,000 less than in 1920 and miscellaneous internal revenue was $514,000,000 less. Customs receipts, on the other hand, were $239,000,000 greater in 1923 than in 1920. SEGEETAKY OF THE TREASURY. DIAGRAM M RECEIPTS AND MISCELLANEOUS • : PRGM CUSTOMS, INCOME A N D INTERNAL PISCAL YEARS BILLIONS OF DOLLARS •l;7 PROFITS TAXES. REVENUE 1913-1923 CUSTOMS 1 0 IMCOr-c AND PROPITS TAXES 0 MISCELLANEOUS INTERNAL REVENUE 1915 I9l6 I917 1918 These are accomplishments which have been effected only by the most rigid economy and the application of business principles to the Government's finances. The country inherited from the war a huge public debt and a high level of expenditures. The tremendous increase in Government expenditures and the magnitude of the problem of war finance are illustrated in diagram 5, page 18, which shows Government expenditures for each fiscal year from 1860 to 1923. It has been the constant effort of this administration to reduce these expenditures and gradually liquidate the debt, believing that the prosecution of such a policy promotes the best interests of the country's business and the public welfare in general. Moreover, it is the purpose of the administration to continue this program and to avoid, in so far as possible, enlarged expenditures and new borrowings, except for refunding purposes. The extent of further reductions in expenditures without impairing governmental efficiency is of course problematical. A large proportion of expenditures is not subject to modification by executive control. It will be noted from diagram 2, for example, that interest on the public debt alone amounted to 28.5 per cent, or more than one-fourth, of all Government expenditures during 1923. This amount was about a quarter of a billion dollars more than the total Government expenditures during the fiscal yiear 1916, the last pre-war 18 REPOET O:^ T H E FINANCES. year,. The sinking fund and other debt retirements chargeable against ordinary receipts took about another 11 per cent of expenditures during 1923, the Veterans' Bureau 12^ per cent, and pensions over 7 per cent. Thus these four items, interest on the public debt, sinking fund, etc.. Veterans' Bureau, and pensions, which are due entirely to past wars, constituted nearly 60 per cent of total expenditures. There will probably be little reduction in these expenditures during the next few years. The War and Navy Departments took nearly another 20 per cent of the total. It may be of interest to note at this point that the entire administrative expenses of the State Department, Treasury Department (exclusive of customs and internal-revenue refunds). Department of Justice, Post Office Department (exclusive of postal service payable from postal revenues). Interior Department (exclusive of Indians and pensions). Department of Agriculture (exclusive of good roads). Department of Commerce, Department of Labor, legislative establishment, executive proper, District of Columbia, and special bureaus and offices, such as Civil Service Commission, Federal Tfa,de Commission, Interstate Commerce Commission, and Tariff Commission, were less than oneeighth of the Government's total expenditures. DIAGRAM 5 U.S. GOVERNMENT EXPENDITURES I 8 6 0 to EACH RSCAL YEAR 1923 t •iBBBBllBSBiliSBlBBi .BIIIIIBI Estimates for the fiscal years 1924 and 1925. The estimated receipts and expenditures for the fiscal years 1924 and 1925, as compared with actual receipts and expenditures during the fiscal 3'^ear 1923, are shown on pages 127 to 129 of this report. SECEETARY OF THE TEEASUEY. 19 For the current fiscal year the estimates include about $222,000,000 on account of principal and interest payments by foreign Governments, of which about $160,000,000 is payable by the British Government imder the debt settlement with that Government approved by the act of Februar}' 28, 1923. The latter item is also included among the public-debt expenditures chargeable against ordinary receipts, in view of the probability of the pa5'ment being made in Liberty bonds, which are acceptable under the act at par and accrued interest. The 1924 estimates also include about $250,000,000 of estimated receipts on account of back taxes, and about $60,000,000 of liquidation receipts by the War Finance Corporation. The estimated expenditures are those received by the Bureau of the Budget. Many of the uncertainties with respect to railroad expenditures included in previous estimates have now disappeared and the new estimates on that account should prove approximately correct. Substantial cash payments have already been received in the current fiscal year in connection with settlements made with carriers by the Director General of Railroads, and while there may be some additional receipts of this character, the estimates indicate that they will be offset by payments on account of the director general's settlements during the fiscal year. Payments to railroads are still being made on account of the guaranty and for deficits during Federal control provided in the transportation act, but these payments should be completed by the close of the current fiscal year on the basis of figures furnished by the Interstate Commerce Commission. While the estimates on pages 107 and 108 show an indicated surplus for the fiscal year 1924 of about $329,000,000, it must be borne in mind that the figures do not take into account expenditures for new or unusual activities, and that the}^^ are based upon a continuance of the policy of rigid econom37'. As to the indicated surplus of $395,000,000 for the fiscal year 1925 many uncertainties still exist, and it should not be expected that succeeding fiscal years will show as favorable a result. I t is only a question of time until some of the present sources of revenue, such as realizations on war assets, collections of back tai*xes, etc., will become exhausted. Moreover, it is obvious that the point must ultimately be reached when the total expenditures of the Government can not be further reduced without seriously impairing efficiency. I t is on the basis of estimated surpluses during the next few years that the Treasury's recommendations for tax revision have been worked out, and any deviation from the policy of economy, through authorizations for new and unexpected expenditures, would make impossible the adoption of such a tax program. REFUNDING THE SHORT-DATED DEBT. The Treasury completed during the fiscal year the first phase of its refunding program, and h j the end of the year all of the $7,500,000,000 of short-dated debt maturing during the previous two and one-half 20 REPORT ON T H E FINANCES. years had been either retired or refunded into more manageable maturities. Except for the issue of about $750,000,000 of 25-30 year Treasury bonds in the fall of 1922, the refunding has all been on a short-term basis, and it has been arranged with a view to distributing the early maturities of debt at convenient intervals over the period before the maturity of the third Liberty loan in 1928 in such manner that surplus revenues may be applied most effectively to the gradual reduction of the debt. With this object in view all of the short-term notes issued in the course of the refunding have been given maturities on quarterly tax-payment dates, and all outstanding issues of Treasury certificates have likewise been reduced to tax maturities. In the place of the old $7,500,000,000 of short-dated debt maturing within two and one-half years, which consisted of over $4,050,000,000 of Victory notes,, over $2,800,000,000 of Treasury certificates of indebtedness and over $650,000,000 of war-savings certificates of the 1918 series, there has been substituted a new class of short-dated debt, aggregating on October 31, 1923, about $5,345,000,000 and consisting of (1) $4,050,000,000 Treasury notes, (2) $940,000,000 Treasury certificates of indebtedness, and (3) about $355,000,000 of Treasury (war) savings certificates. To this must now be added the third Liberty loan, amounting on October 31, 1923, to $3,329,000,000. The following table shows in summary form the changes in the various items of the short-dated debt (maturing within five years) since August 31, 1919: Short-dated debt, August 31, 1919, to October 31, 1923.^ [Millions of dollars.] Date. Total shortdated debt (maturing within five years). Aug. 31,1919 Apr. 30,1921 June 30,1921 June 30, 1922. June 30,1923 . . . Oct. 31,1923 2 9,246 7,602 7,618 6,746 5,473 8,676 Third Liberty loan bonds. Victory notes. 4,113 4,069 3,914 1,991 3,329 Treasury notes. 311 2,247 4,104 4,050 Loan and Pittman Treasury Act and tax certif- special (war) icates of tificatescerof savings indebted- indebted- securities. ness. ness. 3,938 2,548 2,451 1,755 1,031 941 263 272 249 74 931 713 694 679 337 355 1 Exclusive of debt on which interest has ceased and interest-bearing obligations redeemable at the pleasure of the Government but not maturing within the period covered. 2 From Preliminary Statement of the Public Debt, Oct. 31,1923. The largest single item in the short-dated debt at the time the refunding program was announced on April 30, 1921, was the Victory loan, aggregating over $4,050,000,000, and maturing May 20, 1923. I t was apparent that only a small part of the notes could be retired and that the amount was too large to be refunded in a lump sum on the date of maturity without disturbance to the financial markets. The new administration promptly decided that this problem should not be allowed to drift, and the Treasury seized every opportunity 21 SECEETAEY OF THE TEEASUEY. offered by the investment market to issue comparatively small blocks of new Government obligations, and to retire corresponding amounts of the old. I n the early part of 1922 the Treasury authorized the Federal reserve banks to purchase for retirement Victory notes at par and accrued interest direct from the holders. This offer to purchase was extended by successive authorizations until cash reciemption offers were made. Provisions were also made from time to time for accepting Victory notes in payment of income and profits taxes at the various tax-payment dates, and for exchanging Victory notes for new issues of Treasury notes and certificates of indebtedness. The Treasury called for redemption, on June 15, 1922, all outstanding Victory notes of the tax-exempt 3f per cent series, amounting to about $400,000,000, at the time the call was issued on February 9, 1922, and on December 15, 1922, 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, amounting to about $1,000,000,000 at the time the call was issued. Through these redemptions, exchanges, direct purchases, and receipts in payment of income and profits taxes, the greater part of the Victory notes had been disposed of months before the maturity last May. The amount of uncalled notes outstanding at the end of the calendar year 1922 was about $852,000,000. The amount was further reduced to $769,000,000 by April 30, 1923, through exchanges, redemptions, and receipts for income and profits taxes. About $286,000,000, including a few called notes, were exchanged for the new issue of Treasury notes as of May 1.5, 1923, and the remainder matured on May 20, 1923. Not all Victory notes have yet been presented for redemption, however, and there are still outstanding as a part of the non-interestbearing debt about $38,000,000 of the 4 | per cent series. Altogether the Treasury has offered nine issues of Treasury notes at rates of interest varying from Sf to 4^ per cent, according to conditions of the market. The following table gives the total issues of Treasury notes to October 31, 1923: Issues of Treasury notes to October 31, 1923. • Date of issue. 1921: June 16.. Sept. 15.. 1922: Feb.l... Mar. 15.. June 15.. Aug. 1... Dec. 16.. 1923: Jan. 15... May 15.. Date of maturity. June 15,1924. Sept. 15,1924.. Mar. 15,1925.. Mar. 15,1926.. Dec. 15,1925.. Sept. 1.5,1926.. June 15,1925.. Dec. 15,1927.. Mar. 15,1927.. Interest rate. Per cent. 5^ • 4f • 41 41 4i 4^ 4| 4f Amount of issue. $311,191,600 390,706,100 60i; 599,500 617,769,700 335,141,300 486,940,100 469,213, 200 366,981,500 668,201,400 The retirements of Treasury notes amounted to $197,000,000 on October 31, 1923, and the amount outstanding on that date was $4,050,000,000, as shown in the table on page 20. A detailed description of the various offerings of Treasury notes, and also certificates 22 RBPOET ON T H E FINANCES. of indebtedness, since the last annual report of the Secretary is given in the article entitled '^Treasury notes and certificates of indebtedness," on pages 51 to 55 of this report. The volume of outstanding certificates of indebtedness has fluctuated within comparatively narrow limits during the past 12 months and the amount outstanding on October 31, 1923, was $941,000,000, compared with $1,000,000,000 a year previous. The war-savings certificates of the series of 1918 matured January 1, 1923. The Treasury had previously announced special facilities (1) for the exchange of these certificates into Treasury savings certificates of the new issue, with provision for advance exchanges beginning November 15, 1922, and (2) for cash redemption on and after January 1, 1923, w^ith provision for presentation in advance for redemption as of that date. I n the December 15 offering of notes and certificates the Treasury provided for a sufficient margin to take care of the necessary cash redemptions at tlie first of the year. Of the $638,000,000 (maturity value), or thereabouts^ of these securities outstanding when t h e exchange operations began, November 15, 1922, about $500,000,000 were redeemed before January 31, 1923. This amount included about $65,000,000 exchanged for Treasmy savings certificates, series 1923. By October 31, 1923, the amount still outstanding had been reduced to about $21,000,000. Since the refunding program was announced on April 30, 1921, warsavings securities have been reduced from $713,000,000 (exclusive of discount accrued) to about $89,000,000, while new Treasmy savings securities amounting to about $266,000,000 have been issued and are outstanding. A detailed statement as to sales and exchanges of the new issue of Treasury savings certificates is given on pages 55 to.60 of this report in the article entitled '^Govei'nment Savings Securities." The following table shows in summary form the distribution of the interest-bearing debt by maturities at various dates since August 31, 1919, when the gross debt reached the peak: . Interest-bearing debt, distributed by maturities, and totalgross debt August 31, 1919, to October 31, 1923.' [Millions of dollars.] Maturing within five years. Date. Aug. 31,1919. Apr. 30,1921.. June 30,1921.. June 30,1922. June 30,1923. Oct. 31, 1923 2, Total One year Two Within to two years to witliin one year. years. fivcj^'ears. five years.i 4,201 2,820 2,699 4,336 1,393 1,683 572 4,494 366 1,432 1,026 5,045 4,209 425 2,044 2,647 5,967 9,246 7,602 7,618 6,746 5,473 8,676 Maturing Total after five interestbearing years. debt. 17,103 16,158 16,119 15,965 16,535 13,124 26,349 23,760 23,737 22,711 22,008 21,800 Total gross debt. 26,69423,994 23,976 22,964 22,35a 22,082 1 Exclusive of interest-bearing obligations redeemable at the pleasure of the Government but not maturing within the period covered, a From PreUminary Statement of the Public Debt, Oct. 31, 1923. 23 SEeEETAEY OF THE TEEASUEY. The amount of the debt maturing within five years declined $2,129,000,000 between April 30, 1921, and Jime 30, 1923, while the volume of longer-term obligations increased $377,000,000 during the same period as a result of the issue of Treasury bonds in October, 1922. The increase, between June 30, 1923, and October 31, 1923, of the debt maturing within five years and the like decline in the longerterm obligations are due to the fact that on September 15, 1923, the maturity' of the third Liberty bonds moved into the five-year period. Substantial reductions have been made in obligations maturing within one year a,nd those maturing in two to five years. The following table shows in more detail the distribution of debt maturities from October 31, 1923, to November 1, 1928: Public debt maturities to November 1, 1928.^ [Amounts as of Oct. 31,1923.] Date of maturity. Dec. 15,1923 Jan. 1,1924 Mar. 15,1924 June 15,1924 Sept. 15,1924 Jan. 1,1925 Mar. 15,1925 June 15,1925 Dec. 15,1925 Jan. 1,1926 Mar. 15,1926... Se.pt. 15,1926....... Dec." 15-31,1926... January-September, 1927. Mar. 15,1927.......:.,....... October-December', 1927.. Dec. 15,1927. January-OctGb(jr, 192S.... Total, Certificates of indebtedness.2 Treasury notes and Liberty bonds .'-J $370,067,000 570,946,500 Treasury (war) savings certificates (including interest). $370, 067,000 61, 524,793 570, 946,500 311, 088,600 380, 681,100 25, 388,919 3 25,388,919 598, 35.5,900 406, 031,000 299, 663,900 3 14,365,434 14, 365,434 707,900 615, 922,300 869,067 • 414, 2 1,869,067 '103,104,349 1, 104,349 201,400 103, 084,740 2 17,084,740 668, 779,900 17, 2*i44,'56i,'687 355, 775,037 3,473, 367, &38,989 8,688,557,839 iS61,524,793 S311, 088,600 380, 681,100 598, 355,900 408, 031,000 299, 663,900 615, 707,900 414, 922,300 668,201,400 3.55,779,900 43,329, 273,350 941,013, TAIO 7,379,705,350 Total. CuiuulatLve total. $370, 067,000 431. 591,793 1,002; 538,293 1,313, 626,893 1,694, 307,993 1,719, 696,912 2,318, 052,812 2,724, 083,812 3,023, 747,712 3,038, 113,146 3,653, 821,046 4,088, 743,346 4,070, 612,413 4,173, 716,762 4,841, 918,162 4,859, 002,902 5,214, 782,802 8,688, 557; 839 1 Exclusive of debt on which interest has ceased amounting to $41,802,210.26, second Liberty loan bonds amounting to $3,198,197,050, other interest-bearing obligations redeemable at the pleasure of the Government but not inatiuring within the period covered amounting to $205,289,380, and thrift and Treasury savings stamps, unclassified sales, etc., amounting to $4,524,767.22. 2 From Preliminary Statement of the Public Debt, Oct. 31,1923. 3 From PreUEoinary Statement of the PubUc Debt, Oct. 31,1923, plus accrued interest as shown on the Statement of the Public-Debt, Aug. 31,1923. 4 Third Liberty loan, maturing Sept. 15,1928. I t will bo noted from the above table that the maturities of Treasury notes and certificates of indebtedness fall on the various quarterly tax-payment dates and that they are distributed fairly uniformly over the five-year period. These maturities are arranged so as to permit their refinancing with a minimum disturbance to business and industry, and, with the Government balancing its budget each year, it should be possible, through the application of the sinking fund and any surplus revenues, to retire them gradually in time to avoid embarrassment to the heavy refinancing that will be necessary in connection with the maturity of the third Liberty loan. 24 KEPOET 0 ^ T H E FINANCES. WORLD WAR FOREIGN DEBT COMMISSION. The membership and powers of the World War Foreign Debt Commission as originally, defined in the act of .Congress approved February 9,1922, have been amended by the act of Congress approved February 28,1923. (Copies of both acts of Congress as approved are attached as Exhibits 42 and 44 on pages 256 and 261.) The present members of the commission are: Andrew W. Mellon, Secretary of the Treasury, Chairman. Charles E. Hughes, Secretary of State. Herbert Hoover, Secretary of Commerce. Reed Smoot, United States Senator. Theodore E. Burton, Member of the House of Representatives. Charles R. Ciisp, Member of the House of Representatives. Richard Olney, formerly Member of the House of Representatives. Eliot Wadsworth, Assistant Secretary of the Treasury, Secretary. Since November 15, 1922, the commission has held meetings on November 20 and 22, 1922, and on January 6, 8, 9, 10, 11, 12, 14, 16, , and 18, February 1, 2, and 3, March 9 and 10, April 16, May 5 and 21, and October 20, 1923. The following countries have designated representatives to negotiate with the commission: Belgium, Czechoslovakia, Fialand, France, Great Britain, Hungary, Latvia, Poland, Rumania, and Yugoslavia. Delt settlement with Great Britain. The Right Hon. Stanley Baldwin, Chancellor of the Exchequer, and Mr. Montagu C. Norman, Governor of the Bank of England, representatives appointed by the Government of Great Britain to negotiate with the commission, appeared before the commission on. January 8, 1923, for the purpose of considering the funding of the indebtedness of Great Britain to the United States. They placed in the hands of the commission data relating to the financial and economic condition of Great Britain. I t became manifest at the outset that it would not be possible to effect an agreement for funding within the limits of the act of Congress approved February 9, 1922, and the com- > mission, therefore, considered the practicability of a settlement on some other basis. Further meetings between the commission and the British representatives were held on January 10, 11, 12, 14, 16, and 18, 1923, at which time, no agreement having been reached, discussions were adjourned in order to permit the British representatives to return to Ene:land for consultation. On February 1, 1923, the British Ambassador at Washington appeared before the commission and stated that he had been instructed by his Government to notify the commission that the British SECEETAEY OF THE TREASURY. 25 Government had accepted in principle, on January 31, 1923, terms which the commission had indicated to the British representatives it would feel justified in recommending to the President for presentation to Congress. These terms were formulated at a second meeting with the British Ambassador at Washington on February 2, 1923. On February 3, 1923, the commission made its report to the President, setting forth the terms agreed upon and recomnaending for submission to Congress a settlement with the British Government upon these terms. On February 7, 1923, the President addressed the Congress, recommending for its approval the proposed settlement. (Copy of the address of the President, which embodies the report of the commission, is attached as Exhibit 43, p. 257.) Settlement on the terms agreed upon was authorized by Congress by act approved February 28, 1923, already referred to. (See Exhibit 44, p. 261.) Informal discussions were thereafter held between representatives of the British Government and of the commission, with reference to the form of agreement to be executed. The formal proposal by the British Government for the funding of its debt to the United Stales, embodying in detail the terms of the agreement, signed in its behalf on June 18, 1923, by the British Ambassador at Washington, was received by the Treasury on June 19, 1923. Upoi^ receipt of the proposal there was delivered to the British Embassy at Washington the formal acceptance of the proposal by the United States, signed in its behalf by the Secretary of the Treasury as Chairman of the World War Foreign Debt Commission, and approved by the President. There were also similarly delivered at this time, by authority of the commission, two letters addressed to the British Ambassador at Washington, both dated June 19, 1923, signed by the Secretary of the Treasury as Chairman of the World War Foreign Debt Commission, and approved h j the President. Bonds of the United Kingdom, in the aggregate principal amount of $4,600,000,000, issued pursuant to the terms of tho proposal and acceptance, were received by the Treasury on July 5,1923. TheTreasury thereupon canceled and surrendered to the British Government, through the British Embassy at Washington, demand obligations of Great Britain in the principal amount of $4,074,818,358.44, in accordance with the provisions of the proposal and acceptance. (A copy of the proposal and acceptance as executed on June 18 and 19, 1923, respectively, together with the form of bond actually executed and delivered on July 5, 1923, is attached as Exhibit 45, p. 262. Copies of the two letters addressed to the British Ambassador at Washington, dated June 19, 1923, are attached as Exhibits 46 and 47, pp. 270 and 271.) 26 EEPOET ON THE FINANGEa Beht settlement with Finland. Mr. Axel Leonard Astrom, Minister of Finland at Washington and representative appointed by the Government of Finland to negotiate with the commission, appeared before the commission on March 10, 1923, and stated that he had been instructed by his Government to inform the commission of its desire to refund its indebtedness to the United States and to place in the hands of the commission full information regarding the financial and economic condition of Finland. As a result of this meeting and conferences with the officers of the commission an agreement was reached, subject to the approval of the Parliament of Finland and to that of the President and Congress of the United States, in terms substantially similar to that reached with Great Britain. The Minister of Finland thereupon submitted the terms agreed upon to his Government, and thereafter, by letter dated April 12, 1923, advised the commission in substance that on April 10, 1923, the Parliament of Finland had passed a bill authorizing the final settlement of the indebtedness of Finland to the United States, with the result that he was able, on behalf of Finland, to execute a formal agreement embodying the terms agreed upon with the commission. A formal agreement was accordingly executed on May 1, 1923; being signed in behalf of Finland by the Minister of Finland at Washington and in behalf of the United States by the Secretary of the Treasury as Chairman of the World War Foreign Debt Commission. The agreement, with the report of the commission recommending for submission to Congress a settlement with the Government of Finland upon the terms indicated, was foi*warded to the President on May 3, 1923, and received his approval on that date. Congress not being in session, the final consummation of the agreement awaits its action. Progress of negotiations with other debtor nations. Belgium.—Baron de Cartier, Belgian Ambassador at Washington and representative appointed by the Government of Belgium to negotiate with the commission, has stated that he hoped to lay before the commission proposals for the consolidation of the debt of Belgium. He has had some informal discussion with representatives of the commission in regard to the status of the indebtedness, but no proposals or representations with reference to its refunding have yet been received. Cuba.—The Government of Cuba has repaid in full its indebtedness to the United States evidenced by obligations representing cash advances under the Liberty bond acts aggregating $10,000,000. (See p. 30. Repayments on account of principal.) CzechoslovaTcia.—Dr. Frantisek Chvalkovsky, Minister of Czechoslovakia at Washington, Dr. Eugene Lippansky, counselor to the SECEETAEY OF THE TEEASUEY. 27 Ministry of Finance, Capt. Stanislas Kfenek, of the Ministry of National Defense, and Mr. Francois Pisecky, Director of the Corn Office and Expert Collaborator, representatives appointed by the Government of Czechoslovakia, arrived in Washington in May, 1923, and called at the office of the commission. They stated that they had been instructed by their Government to establish the total amount of the indebtedness of Czechoslovakia to the United States; to adjust the accounts of the Ministries of Finance, Food, and National Defense of their Government, so that the central administration of Czechoslovakia might be able to coordinate its accounts with those of the Government of the United States; and, under certain conditions, to enter into negotiations for a general settlement of the indebtedness determined to be due. The representatives of Czechoslovakia have reconciled the figures of their Government with those of the American Relief Administration and the United States Grain Corporation, but have not yet brought about an agreement between their figures and those of the War Department and the United States Shipping Board. The representatives of Czechoslovakia left the United States in July, with the understanding that they would continue their efforts to adjust all differences, and would return to the United States in the autumn to continue the negotiations. Esthonia.—The Government of Esthonia has indicated that it, hopes to appoint in a short time its representative to negotiate with the commission. France.—An account of certain preliminary discussions held in July, 1922, with Mr. Jean Parmentier, Director of the Movement of Funds of the French Treasury and representative appointed by the Government of France to negotiate with the commission, appears in the previous report of the commission on page 26 of the annual report of the Secretary of the Treasury for the fiscal year ended^ June 30, 1922. Mr. Parmentier returned to France in August, 1922, for a full discussion with his Government of the situation as it had developed here. No proposals or representations have been received since his departure. Hungary.—Count Laszl6 Szech6nyi, Hungarian minister at Washington and representative appointed by the Government of Hungary to negotiate with the commission, advised the Department of State on June 7, 1923, that his Government would shortly propose a plan for the refunding of its obligations to the United States. Italy.—The Government of Italy stated in July, 1922, that it was prepared to send representatives to this country to negotiate with the co:camission, but as yet has not informed the commission of the designation of representatives nor made further proposals or representations in the matter. Latvia.—The Latvian Minister for Foreign Affairs and the Latvian Minister of Finance were authorized on August i6, 1923, to enter 62166—FI 1923 -4 28 REPORT ON T H E FINANCES. into negotiations with this Government with a view to arranging for a settlement of the indebtedness of Latvia to the United States. The Latvian Government expressed a desire that the negotiations be conducted at Riga. This Government has replied that under existing legislation the commission as at present composed will be unable to negotiate in Europe, and has suggested negotiations at Washington. Lithuania.—No representatives have been appointed to negotiate with the commission. No proposals or Representations have been received. Poland.—-Mr. Hipolit Gliwic, Counselor of the Legation of Poland at Washington and representative appointed by the Government of Poland to negotiate with the commission, has advised the commission that he has succeeded in reconciling the figures of his Government with those of the American Relief Administration and the United States Grain Corporation, that he is hopeful of bringing about an agreement between his figures and those of the War Department and the Navy Department at an early date, and that his Governinent hopes to be able to open negotiations for a general refunding of the indebtedness determined to be due in the near future. Roumania.—Mr. Eftimie Antonesco, Counselor at the Supreme Court at Bucharest and professor of the Commercial Academy of Bucharest, and Mr. Constantin Antoniade, Counselor at the Court of Appeal at Bucharest and president of the Paris Commission in charge of the consolidation of Roumanian treasurAT- bonds, representatives appointed by the Government of Roumania to negotiate with the commission, appeared before the commission on November 22, 1922. They stated at this meeting and at conferences with the officers of the commission that they had been charged by their Government to consider and verify with the commission the exact amount of the /indebtedness of Roumania to the United States. This was substantially accomplished. They also placed in the hands of the commission certain information regarding the financial and economic condition of Roumania, a;nd explaiiiieid to the commission the difficulty which their Government found in determining at that time the exact date when it might become possible to begin payment of interest on its indebtedness. They stated that they had been authorized to discuss any suggestions which might be made by the commission, with a view to refunding this indebtedness, but that they possessed no authority to enter into any binding agreement on behalf of their Government for such a refunding. They filed with the commission a statement to the effect that it was the intention of their Government to meet the indebtedness as soon as it should become possible to do so, and requested that the negotiations might be suspended and that their visit might be regarded as a preliminary one, further negotiations to be undertaken at a later date. In reply the commission SECEETAEY OF THE TEEASUEY. 29 defined its • position and authority and expressed|its desire for an early refunding of the Roumanian indebtedness. The Roumanian representatives left the United States shortly after this meeting. Yugoslavia^.—The Government iof Yugoslavia. has stated/that it is to send a mission to Washington for the purpose of presenting to the commission the point of view of that Government regarding the question of the adjustment of its war debts to the United States. The commission has conducted no negotiations with regard to the indebtedness of Armenia, Austria, Greece, Liberia, Nicaragua, and Russia for the following reasons: M Armenia, Greece, and Russia.—In none of these countries is there; a Government recognized by the United States. {.Austria.—Repayment, of ^this indebtedness, both principal and iur terest,: has. been postpoiied until J u n c f l , 1943, by the-Secretary of, the Treasury, acting in. behalf of. the United: States under special authority conferred by joint resolution passed by Congress and approved by the President on'April 6,.1922. • (See p. 33.) ii6erm:-^This indebtedness has also been the subject of special legislation under consideration;during the past session of Congress.. (See p. 25 of the Annual Report of the Secretary of the Treasury for the fiscal year ended June 30, 1922.) Nicaragua.—This indebtedness is regarded as already in funded ipvxn. : , ,, ' : Statistical information has been and is being compiled and analyzed with:a view to following the financial and economic conditions of! all debtor nations. The commission is continuing to perform its duties as defined in the applicable statute, and hopes to reach an adjustment with all nations indebted to this Government at the earliest possible date. For a detailed statement of the 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 15, 1923, see Exhibit 41, page 255. OBLIGATIONS OF FOREIGN GOVEENMENTS. The obligations of various foreign governments held by the Treasury on November 15, 1923, aggregated $10,578,509,342.13, principal amount, and may be classified as follows: (1) $5,242,468,566.82 representing cash advances made by the Secretary of the Treasury, with the approval of the President, under the Liberty bond acts. (2) $595,088,009.27 received from the Secretary of War and the Secretary of the Navy on accoiint of sales of surplus war material under the act of July 9, 1918. 30 REPORT ON T H E FINANCES: (3) $84,093,963.55 received from the American Relief Adminis^ tration on account of relief supplies furnished under the act of February 25, 1919. (4) $56,858,802.49 received from the United States Grain Corporation on account of sales of flour for relief purposes under the act of March 30, 1920. (5) $4,600,000,000 received from the British Govermnent under the terms of the funding agreement concluded pursuant to the act of Congress approved February 9, 1922, as amended by the act of Congress approved February 28, 1923. (See report of World Wat Foreign Debt Commission, p. 24.) In addition to the above, it is understood that notes of the Polish Government, amounting to about $4,000,000, received on account of transportation service, are held by the United States Shipping Board subject to possible further adjustment in amount, to be later turned over to the Treasury for custody. A statement showing in detail the obligations of foreign governments now held by the Treasury, with interest accrued and remaining unpaid as of the last interest period prior to or ending with November 15, 1923, is attached as Exhibit 41, page 255. Repayments on account of principal. Obligations representing cash advances under the Liberty bond acts, originally aggregating in principal amount $9,598,236,575.45 have been repaid or refunded prior to November 15, 1923, as follows:: Country. Belgium Cuba France Great Britain. Italy Roumania Yugoslavia Total. To Nov. 15, 1922. From Nov. 16,1922, to Nov. 15. 1923. $1,963,454.49 2,259,500.00 64,072,729.85 141,181,641.56 I $40,204.72 2 7,740,500.00 8 139,838.19 « 4,135,818,358.44 • 337^000.74 1,794,180.48 653,890.97 211,925,397.35 & 66,709.19 4,143,842,611.28 Total. $2,003,659.21 10,000,000.00 64,212,568.04 4,277,000,000.00 37,000.74 1,794,180.48 720,600.16 4,355,768,008.63 • Represents unused balance of certain advances made to Belgian Government, turned over by latter to commission for relief in Belgium, to be expended for relief purposes, and repaid to the Treasury imder an arrangement previously made with Belgian Government to oe applied on account of principal of obligations representiagcasn advances under Liberty bond acts. 2 Completes payment in full of indebtedness of Cuban Government evidenced by obligations representing cash advances under Liberty bond acts, aggregating $10,000,000. 8 Represents amounts due the Governments of France and Italj'-, by various departments of the United States Government, paid to the Treasury under arrangements previously made with those Governments, to be applied on account of principal of obligations representing cash" advances under Liberty bond acts. ^ Is composed of two items. The first item of $61j000,000 completes payment in full of balance of indebtedness evidenced by obligations originally aggregating in principal amount $122,017,633.57, and regarded as having been given for purchases of silver under Pittman Act. The second item of $4,074^18,358.44 represents the amount of principal funded under the terms of the funding agreement with Great Britain. (See report of World War Foreign Debt Commission, p. 24.') 5 Is composed of two items. The first item of $1,107.54 represents an application on account of principai, as described in note 3 above. The second item of $65,601.65 represents unused balance of certain advances made to Serbian Government, turned over by latter to American Red Cross to be expended for relief of Serbian prisoners of v/ar, and repaid to the Treasury under an arrangement previously made with the Serbian Government to be applied on account of principal of obligations representing cash advances under Liberty bond acts. 31 SECBETARY OF THE TREASURY. Obligations received from the Secretary of War and the Secretary of the Navy on account of sales of surplus war material imder the act of July 9, 1918, originally aggregated in principal amount $595,141,980.43. The sum of $53,971.16, representing amounts due the Belgian Government by the War Department for supplies and services to the Army of occupation of the United States in Germany, has been paid to the Treasury to be applied on accoiftit of principal of these obligations, pursuant to an arrangement previously made with the Belgian Government. No repayments on account of principal have been made on any of the obligations received from the American Relief Administration or the United States Grain Corporation on account of relief supplies furnished and sales of flour under the acts of February 25, 1919, and March 30, 1920. Interest payments. The following table shows the total amount of interest paid on obligations representing cash advances under the Liberty bond acts: Country. Belgium Cuba Czechoslovakia.. France Great Britain.. Greece , Italy Liberia Roumania Russia Yugoslavia , To May 15,1919. May 16, 1919, to Nov. 15, 1922. Nov. 16, 1922, to Nov. 15, 1923. $10,907,28L55 394,520.55 304,178.09 125,100,194.08 231,112,406.91 57,598,852.62 161.10 108,904.11 3,495,686. 72 636,059.14 Total., 429,658,244.87 $1,465,212.59 $427,018.44 4,470,182.05 120,544,778.59 1531,421,113.17 1,159,153.34 700.00 154,409.63 3,989,869.24 131,784,305.44 'i 2 40,159.15 Total. $10, 907,281.55 2,286,751.58 304,178.09 129, 570,376.13 883,078,298.67 1,159,153.34 57, 598,852.62 861.10 263,313.74 525,715.11 636,059.14 531,888,290.76 1,093,330,841.07 1 Is composed of three items. The first item of $525,181,641.56 represents the amount of accrued interest funded under the terms of the fimding agreement with Great Britain. (See report of World War Foreign Debt Commission, p. 24.) The second item of $4,128,085.74 represents balance of accrued interest paid in cash on March 15,1923, in order to reduce the total indebtedness to be funded to $4,600,000,000. The third item of $2,111,385.87 represents further j)ayments in cash on April 14, May 15, and September 15, 1923, of interest due on obligations regarded as having been given for purchases of silver under the Pittman Act. 2 Represents proceeds of liquidation of financial affairs of Russian Government in this country. (Copies of letter dated May 23, 1922, from the Secretary of State, and of reply of the Secretary of the Treasury dated June 2,1922, in regard to loans to Russian Government and liquidation of affairs of the latter in this country appear in annual report of Secretary of the Treasury for fiscal year ended June 30,1922, as Exhibit 79, p. 283.) The following statement shows the total amount of interest paid on obligations 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: Country. Belgium. France... Latvia... Poland.. Russia... Total. To Nov. 15, 1922. Nov. 16, 1922, to Nov. 15, 1923. $4,176,780.46 40,898,283.56 126,266.19 1,811,948.20 50,760.30 $1,377,250.78 20,367,057.25 $5,554,031. 24 61,265,340. 81 126,266.19 1,811,948.20 50,760.30 47,064,038.71 21,744,308.03 68,808,346.74 • Total. 32 REPORT 0I:T T H E FIl^ANCES. The following statement shows the total amount of interest paid on obligations received from the American Relief Administration on account of relief supplies furnished under the act of February 25, 1919: ^ • To Nov. 15, 1922. Country. , Nov. 16, 1922, to Nov. 15, 1923. Total. • Finland Russia Total $181,017.17 '. ....!. 181,017.17 I $309,315.27 $309,315.27 181,017.17 309,315.27 490,332.44 . .1 Includes $9,315.27 a(3crued interest paid in cash in order to reduce to $9,000,000 the total indebtedness of Finland to be funded under the terms of the funding agreement executed, subject to the approval of Congress, on May 1,1923. (See report of World War Foreign Debt Commission, p. 26.) No interest has been paid on obligations received from the United States Grain Corporation on account of sales of flour for relief purposes under the act of Match 30, 1920. On June 15, 1923, the Treasury received the first semiannual installment of interest on bonds in the aggregate principal amount of $4,600,000)000, later! received from the British Government under the terms of the funding agreement with Great Britain. (See report of World War Foreign Debt Comraission, p. 24.) Payment was inade as follows:: Second Liberty loan 4^ per cent bonds par v a l u e . Fourth Liberty loan 4^ per cent bonds par value.. Accrued interest on bonds Cash adjustment Total : 8, 502, 950. 00 250, 000. 00 247, 022. 56 27.44 69, 000, 000. 00 On June 15, 1923, the Treasury also received from the Government of. Finland $135,000 in cash, the amount payable as the first semiannual instalment of interest under the terms of the funding agreement executed, subject to the approval of Congress, on May 1, 1923. •(See report of World War Foreign Debt Commission, p . 26.) . I t will be noted from the above statements that the Governments of Cuba and Great Britain have paid or licjuidated in full interest due upon all their respective obligations; that the Government of Finland has entered into an agreement, subject to the approval of Congress, providing for the payment or liquidation of interest due upon all its obligations; and that the Governments of Belgium and France have paid in full interest due upon such of their respective obligations as have been received from the Secretary of War on account of sales of surplus war material under the act of July 9, 1918. SECRETARY OF THE TREASURY. 33 Change in terms of, and security for, obligation of Austrian Government. Among the obligations received from the United States Grain Corporation on account of sales of flour for relief purposes under the act of March 30, 1920, is one of a series of Austrian Government bonds of a face value of $24,055,708.92, designated as ^^Relief Series B of 1920,'^ described on page 23 of the annual report of the Secretary of the Treasury for the fiscal year ended June 30, 1922. On February 20, 1923, the Reparation Commission released from reparation claims for a period of 20 years certain assets and revenues of the Austrian Government, in order that they might be used as security for the Austrian Government guaranteed 20-year loan, maturing in 1943, issued pursuant to a plan for control of Austrian finances embodied in three protocols signed at Geneva on October 3, 1922. All Governments holding relief obligations were asked to take similar action with respect to the charge enjoyed by these bonds. In this connection, acting under the authority conferred by the joint resolution passed by Congress and approved by the President on April 6, 1922, copy of which also appears on page 23 of last year's annual report, and pursuant to advices received through the Department of State, the Secretary of the Treasury, on behalf of the United States, on June 9, 1923, formally extended to June 1, 1943, the time of payment of the principal and interest of the Austrian obligation held by this Government and consented to subordinate the lien of the obligation upon such assets and revenues of the Austrian Government to that of the abovedescribed loan, without prejudice, however, to the priority over costs of reparation to which the obligation is entitled. BUREAU OF INTERNAL REVENUE.^ Internal-revenue collections for the fiscal year ended June 30, 1923, aggregated $2,621,745,227.57, compared with $3,197,451,083 for the fiscal year ended June 30, 1922, a decrease of $575,705,855.43, or 18 per cent. This decrease in collections is mostly accounted for by the decrease of $395,828,930.29 in receipts from income and profits taxes, which aggregated $1,691,089,534.56 for the fiscal year 1923, compared with $2,086,918,464.85 for the fiscal year 1922. The receipts for 1923 include payments of the third and fourth installments of the 1921 taxes and the first and second installments of the 1922 taxes. There are also included various payments on account 1 The figures concerning internal-revenue receipts as given in this statement differ from such figures carried in other 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 stamps and deposits of internal revenue collected through customs offices, 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 30, thus carrying them, into the following fiscal year as recorded in the statements showing the condition of the Treasury. 34 REPORT ON THE FINANCES. of additional assessments and amended returns of income and profits taxes for prior years resulting from field investigations and oflftce adjustments. Notwithstanding the lower rates in force under the revenue act of 1921, an increase in revenue is shown for the last half of the fiscal year 1923. The tax payments for the six months ended June 30, 1923, were $1,015,104,788.88, compared with $844,386,540.25 for the six months ended June 30, 1922. During the fiscal year ended June 30, 1923, the Income Tax Unit assessed $460,818,099.95 in additional taxes, of which $132,525,380.55 was assessed without giving the taxpayer the benefit of an appeal^ in order that the collection of the tax might not be jeopardized. On such assessments, because of the fact that the 30-day privilege of protest and appeal was :not allowed, the bureau, in fairness to the taxpayer, held these amounts to be subject to claims in abatement. I n addition to the additional taxes assessed, the Income Tax Unit, by rejection of claims in abatement and claims for credit of taxes previously assessed, made $136,291,240.95 immediately available for collection. During the fiscal year the efforts of the Income Tax Unit were largely directed toward the auditing of 1917,1918, and 1919 returns, particularly the 1917 returns upon which the five-yea,r limitation for assessment expired in March. The result of this concentration on old work was the practical completion of the 1917 returns, with the exception of those for which claims are now pending. At the same time substantial progress was made on the 1918 and 1919 returns, so that at the present time the unit is in a much more favorable position in regard to the 1918 returns than it was on the 1917 returns at this time last year. The returns audited include the most diflficult cases, involving large amounts of additional taxes. The number of field reports and claims on hand in the bureau was reduced from 450,000 to 180,000. This reduction was accomplished despite the fact that 94,928 claims were received and 259,209 transcripts of returns were sent to the field for investigation. There were reviewed in Washington 183,920 revenue agents' reports on individual and partnership returns and 78,777 reports on corporations. The number of transcripts of returns awaiting investigation in the field offices of the Income Tax Unit was reduced from 275,000 to 70,000. This reduction was made possible largely by an increase intrained and experienced personnel and increase in the fate of pro-^ duction. The entire field force is concentrated on completing before December 1, 1923, all remaining 1917 and 1918 cases. During the last month of the fiscal year a new procedure wa& established in the audit of returns at the files, with the result that, during the first quarter of the fiscal year 1924 over 630,000 returns were audited. This indicates the completion of the greater portion of SECRETARY OF THE TREASURY. 35 the 1920,1921, and 1922 returns during the fiscal year 1924. The total number of returns audited during the past fiscal year, with the audit largely confined to old returns, was 1,292,612. If the rate of 630,000^ obtained in the first quarter of the fiscal year 1924, is continued, the total for the fiscal year 1924 would be approximately 2,500,000. The greater part of the force of the Income Tax Unit will, however, continue on the work of disposing of the returns for 1918 to 1921, inclusive. The number of appeals taken to the Committee on Appeals and Review was 3,889, compared with 1,148 for the fiscal year 1922, an increase of 239 per cent. The growth in the work necessitated an increase in the personnel of the committee, which on Jime 30,1923, numbered 20 members, including the chairman. The committee decided 2,656 appeals during the year. For the convenience of taxpayers in States distant from Washington, particularly those west of the Mississippi, a field subcommittee of the Committee on Appeals and Review was organized and on April 20, 1923, began a series of hearings at St. Paul, Minn., open to taxpayers of the vStates of Minnesota, Wisconsin, North Dakota, South Dakota, Iowa, and Montana. Approximately 150 appeals were heard and disposed of. The work of the subconunittee was such as to justify its continuance, and plans were made and approved for its transfer to the Pacific coast for the hearing of appeals by taxpayers in the States of Washington, Oregon, Utah, Idaho, California, Arizona, and Colorado. Estate-tax collections aggregated $126,705,206.55, compared with $139,418,846.04 for the preceding fiscal year. The number of estate-tax returns filed was 14,272, showing a tax liability of $82,266,951.88. As the result of field examinations and division audits additional tax to the amount of $62,764,429.95 was disclosed. The amount of capital stock t a x collected was $81,567,739.32, compared with $80,612,239.80 for the fiscal year 1922. Approximately 325,000 capital stock returns are received annually. Collections from sales taxes amounted to $302,922,837.03, compared with $497,478,359.06 for the fiscal year 1922. The decrease was occasioned by the repeal of certain provisions of the revenue act of 1921 under which collections were made for the first half of the fiscal year 1922. Included in the general classification of sales taxes are taxes on telegraph, telephone, radio messages, and leased wire and talking circuits; beverages and the constituent parts thereof; admissions; club dues; excise taxes on sales of automobiles, candy, cameras, firearms, sculpture, jewelry, yachts, carpets, etc. Collections from the tobacco taxes, aggregating $309,015,492.98, were the greatest in the history of the Internal Revenue Service, exceeding the previous peak of $295,809,355.44 for the fiscal year 1920 by $13,206,137.54, Of the total, $182,584,806.83, or 59.09 36 .EEPORT ON T H E FINANCES. per cent, was from taxes on small cigarettes. These collections are more than double those from the same source in 1919, and exceed the entire tobacco collections for any fiscal year prior to 1919. Tobacco collections for the year 1923 represent 11.79 per cent of the total internal revenue collections, compared with 8.47 per cent for the preceding year. Collections from miscellaneous stamp taxes aggregated $75,218,273.14, compared with $69,524,259.65 for the fiscal year 1922, an increase of $5,694,013.49. The increase was .from the following sources: Documentary stamp taxes; special taxes on proprietors of theaters, museums, and concert halls; special taxes on persons carrying on the business of operating or renting passenger automobiles for hire; and stamp taxes on oleomargarine, adulterated butter, and playing cards. An increase in the production of oleomargarine for the first time since 1920 indicates that the industry is gradually returning to a normal basis. A small field force, which did not exceed 25 men, reported delinquent taxes amounting to $2,867,670.04. Constant effort is made to afford taxpayers the best possible service in the transaction of their business with the Internal Revenue Service. An additional collection district, known as the third internal revenue district of New York, was established April 1, 1923, in New York City, comprising that portion of Manhattan Island from Twenty-third Street north. The establishment of this district places in New York City two internal revenue districts of practically equal size and importance, thereby expediting the work of handling the many returns filed in that city, which formerly were handled solely by the second internal revenue district. On June 30, 1923, there were open 183 division headquarters, 19 subdivision offices, and 17 offices at which stamps only were sold, in addition to 65 collectors^ offices, a total of 284 offices and branch offices. The work of the solicitor's office, which embraces the whole field of Federal taxation, increased largely during the year. The heavy demands made on the time of the assistant solicitors, who compose the conference committee, necessitated a change in procedure. Since May, 1923, the committee has met only on special call for the consideration of the more important questions referred to the solicitor's office. An Appeals Division was created in May, 1923, to assist in disposing of a number of appeal cases. The number of cases received was 566 and the number disposed of by June 30, 1923, was 154. A special adjustment section was created, the primary function of which is to review cases submitted by the fraud section of the Income Tax Unit where the assessment of additional taxes, or fraud penalties, or the institution of criminal prosecutions, is under consideration. SECRETARY OF THE TREASURY. 37 Prohibition and narcotic enforcement. The reorganization of the activities of the prohibition unit effected during the fiscal year 1922 proved satisfactory, and only a few minor changes in organization have been found necessary during the fiscal year 1923. Special attention has been given to securing the greatest possible amount of cooperation from prosecuting attorneys, sheriffs, police departments, and local peace officers in enforcing prohibition; to establishing and maintaining a uniform method of procedure for conducting hearings of persons cited to show cause why permits granted to them to use or sell intoxicating liquor should not be revoked; to instituting injunction proceedings to abate liquor nuisances under sections 21, 22, 23, and 24 of the national prohibition act; to invoking the conspiracy provisions of the Criminal Code in the prosecution of violators of the act; and to securing, by proper legal proceedings, the disposition of all property seized under that act. During the year a low record was made in the withdrawal of whisky for tax payment and consumption. Whisky in the amount of 1,754,893 gallons was tax-paid for distribution under permits, the major part of it being dispensed by druggists on physicians' prescriptions. This consumption of whisky compares with previous years as follows: During the fiscal year ended June 30, 1921, 8,671,860 gallons were tax paid, this being the first full year of prohibition under the eighteenth amendment to the Constitution, and 2,645,506 gallons were tax paid during the fiscal year ended June 30, 1922. The average annual consumption of whisky during 10 3^ears prior to prohibition was approximately 130,000,000 gallons. The high point of whisky consumption in this country was reached in the fiscal year ended June 30, 1917, in which year there was tax payment on 164,291,294 gallons of distilled spirits. The present consumption of whisky officially released on permits is a little more than 1 per cent of whisky consuiaption prior to prohibition. . The magnitude of the policing activities of the prohibition officers of the Treasury Department can be realized from the fact that during the past fiscal year 66,936 persons were arrested by these officers for violating the provisions of the national proliibition act. Fines and forfeitures resulting from these arrests were turned into the Federal Treasury in the amount of $4,366,056. Qft'ers in compromise for civil liabilities incurred as a result of violations of the national prohibition act covered into the Treasury $716,005.20, in addition to the moneys collected as a result of criminal convictions and forfeitures. This is in addition to the amounts paid as fines and forfeitures in the State courts. Most of the cases made by Federal prohibition agents 38 REPORT ON T H E FINANCES. are taken into the State courts on account of the fact that the agents are able to get quicker action in the State courts, owing to the congested dockets of the Federal courts. Property used in violating the law, valued at $11,478,277.53, was seized by officers of the Treasury Department operating under the prohibition commissioner, and prohibition agents reported during the year 4,379 cases involving violations of law on the part of persons holding permits to use, sell, or prescribe intoxicating liquors. In compliance with the urgent recommendation of officials of the Treasury Department, Congress incorporated in the act making appropriations for the department for the fiscal year ended June 30, 1923, a brief authorization permitting the Commissioner of Internal Revenue to move whisky from bonded warehouses to other bonded warehouses. This statutory provision corrected a previous situation which made it impossible to collect the large stocks of bonded whisky in the country into a small number of warehouses. Since the enactment of this legislation bonded whisky warehouses have been reduced from 296 to 137. Of the latter number 27 have been designated by the Commissioner of Internal Revenue as official concentration warehouses, and the stocks of liquor remaining in the warehouses not so designated will be moved rapidly into the concentration warehouses. Approximately 35,000,000 gallons of liquor, original gauge, are now in these bonded warehouses available for medicinal use. About 24,000,000 gallons of this whisky are now stored in the 27 designated concentration warehouses, leaving about 11,000,000 gallons not yet moved into concentration houses. This movement is being pushed rapidly, as it means not only the safety of the whisky for medicinal purposes but a large saving in salaries of Government officers assigned as guards at the bonded warehouses. This movement has resulted in a saving to the Government in excess of $400,000 during the past fiscal year, the number of warehouse guards being reduced from 490 to less than 190, and the salaries of such guards being $1,440 per annum. I t has resulted also in large savings to the owners of the whisky, who pay lower storage rates at the concentration warehouses. A commission on importation of wine and exportation of spirits was designated late in the fiscal year, and the first session was held on April 16, 1923. Since March 10, 1923, the head of the narcotic division, prohibition unit, who was then designated secretary of the Federal Narcotics Control Board, has administered those provisions of the narcotic drugs import and export act which relate to the issuance of permits and the disposition of drugs seized under the act. The Harrison narcotic law has been enforced with increased effectiveness, and the volume of illicit trafficking in prohibited drugs SECRETARY OF THE TREASURY. 39' has been reduced. Better cooperation in the enforcement of the law on the part of legitimate handlers of narcotics is evident. The drastic policy pursued with respect to traffickers in narcotic drugs has resulted in an appreciable increase in the number of illegitimate dealers apprehended and brought to justice, and through the sympathetic attitude of the courts there has been an increase in the number of convictions procured and sentences imposed. CUSTOMS. Customs receipts for the fiscal year 1923 were $562,189,039. This "was the largest amount ever collected during one fiscal year, and 'exceeded the receipts of the previous fiscal year by $204,644,327. Moreover, refunds made on account of drawbacks were $7,435,626 less than for the fiscal year 1922, and refunds on account of excessive duties deposited showed a decrease of $845,481. The maintenance of the service during the fiscal year under review involved an expenditure of $13,161,345, and although this was an increase of $493,579 over the fiscal year 1922, the proportionate cost of collection was reduced from $0.0347 to $0.0231 per dollar. Imports during the fiscal year 1923 were valued at $3,781,259,144, :an increase of $1,173,250,136 over the preceding year; exports were valued at $3,957,077,933, an increase of $185,896,336 over the fiscal year 1922. The balance of trade in favor of the United States was reduced from $1,163,172,589 in 1922, to $175,818,789 in 1923. The new tariff act went into effect September 22, 1922. Administrative procedure was extensively revised, and the many new features inaugurated, together with the expansion of foreign trade, taxed the Tcsources of the service to the utmost. At the time that the appropriations for the year were fixed, an increase in the volume of imports was not anticipated, and with the limited funds available it was ^extremely difficult to expand the service to meet extraordinary conditions. Abrupt and sudden changes in the values of foreign merchandise were brought about by fluctuations in exchange, thereby increasing the difficulties of appraisement. The present law enlarges the scope of the importers' right to protest and gives to domestic manufacturers similar privileges. This fact, itogether vath the higher rates of duty imposed, has resulted in an unusual number of protests. Currency depreciation is also a fruitful source of protest and there are many thousands of claims pending for the allowance of duty on account of such depreciation. Approximately 7,500 protests covering various other issues were also pending at the close of the fiscal year at the port of New York alone. Extensive changes in the tariff and customs laws made necessary a revision of the Customs Regulations of 1915. A committee of cus- 40 REPORT ON T H E FINANCES. toms officers has been engaged in this work since the latter part of the last fiscal year. The complete regulations will be issued shortly. The administration of the regulations promulgated by the Federal Narcotics Control Board under the act of May 26, 1922, was transferred, on March 15, 1923, from the Division of Customs to the Narcotic Division of the office of the Prohibition Commissioner of the Bureau of Internal Revenue, and the head of that division was designated as the board's secretary. The tariff act of 1922 requires persons in charge of vehicles arriving from contiguous foreign territory to report to a customs officer, deliver a manifest for any merchandise on board, and secure a permit before discharging any merchandise, passengers, or baggage. The constant stream of tourist traffic, particularly across the eastern part of the Canadian border, makes it desirable to maintain a 24-hour customs service, at least from May to November. The enforcement of the laws against the illegal importation of liquor and drugs presents an ever-growing problem. The use of highpowered automobiles and high-speed motor boats to carry on this illegal traffic renders obsolete the equipment and methods which were formerly eft'ective. Customs officers made many large seizures during the 5^ear; but in order to control more effectively this illegal traffic, additional funds are necessary for the employment of a larger force for border work and for the equipment of the force with better facilities for rapid transportation. For the purpose of consolidating the work of collecting, compiling, and publishing statistics of foreign commerce in the Department of Commerce, the Bureau of Customs Statistics at the port of New York was transferred to that department, effective January 1, 1923, in accordance with congressional authority. THE DOMESTIC CREDIT SITUATION. Sufficient credit at reasonable rates has been,available at ^11 times during the 3^ear for handling the tucreased volume of business, and the banking system of the country is now in an unusually strong position. The low point in the demand for bank credit was reached about the middle of 1922, and sitice that time there has been a fairly steady upward movement in the volume of credit except for a slight decline during the summer months of the current year. The turning point in the demand for credit followed a gradual improvement in business activity which had begun almost a year previous. This growth in business activity gathered greatly increased momentum during the latter half of 1922 and the early months of 1923, and many new high records in production and trade have been made. Begin]iing with, the spring and summer months, however, there was a slackening in many lines of activity and the autumn trade expansion 41 SECRETARY OF THE TREASURY. has not been present on a scale commensurate with many previous active years. Business activity, however, is still much greater than a year ago and general^ presents the appearance of being in a sound and stable condition. Wholesale prices are practically on the same level as a year ago, although some desirable readjustments have occurred. Prices of many of the leading farm products, for example, are considerably higher than a year ago and the condition of the farmer generally has materially improved. Much of the advance in farm prices has occurred within recent months, and it is significant because it has occurred at a time when the farmer was marketing his products. In fact, the purchasing power of farm products is now at the highest point in three years. Wheat and livestock are, of course, among the exceptions to the improvement in the price situation. The. principal changes in loans and investments of member banks in leading cities since June 28, 1922, are shown in the following table: •• [In milhons of .dollars.] June 28, 1922. Nov. 1, 1922. Jan. 3, 1923. ' June 27, 192;3. Oct. 31, .192:^. • Changes since June 28, 1922. Amount. Per cent, Loans and discounts: Investments Total loans and investments Borrowings from Federal re. serve banks Ratio of borrowings from Federal reserve banks to loans and discounts per cent.. 10,783 4,405 11,275 4,539 11,598; • 4,733 11,851 4,692 .11,944 4,530 + 1,161 +125 + 10.8 +2.8 15,188 15,814 16,331 16,543 16,474" + 1,286. +8.5 165 341 390 491 593 • +428 + 259. 4 1.5 3.0 3.4 4.1 5.0 The greater part of the iucreased borrowings has been for commercial and industrial purposes and these demands have been met by member banks largely through the use of imported gold and out of additions to their tirnfe deposits, rather than through Federal reserve bank accommoda,tions. Although the turning point in the demand for credit for commercial purposes was reached about July, 1922, the liquidation of agricultural loans continued until about the end of that year. There was practically no increased demand for loans by member banks iin agricultural regions until the planting season of 1923, but since that date the chief demand for reserve bank accommodation has come from the agricultural districts, principally from the cotton and wheat growing districts. I t may be noted in this connection that the demands for agricultural credits have been amply taken care of through the regular banking channels and that there has been little demand for credit through the new instrumentalities set up by the agricultural credits act of 1923. No agricultural credit corpora- 42 REPORT ON TPIE FINANCES. tions have been established under that act and the amount of loans made by the Federal intermediate credit banks is comparatively small. While there has been little change in net demand deposits of member banks in leading cities during the past 12 months, aside from the year-end fluctuations, time deposits have shown a constant increase. Standing a t $3,642,000,000, on November 1, 1922, they steadily increased throughout the year, reaching $4,032,000,000 on October 31, 1923. Deposits of savings banks have likewise shown a substantial increase during the period under review. The following table shows the changes which have occurred since June 28, 1922, in the deposits of member banks in leading cities: [In millions of dollars.] J i m e 28, 1922. N o v . 1, 1922. J a n . 3, 1923. June 27, 1923. Oct. 31, „ 1923. Change since June 28,1922. Amount. Per cent. D e m a n d deposits ( n e t ) T i m e deposits G o v e r n m e n t deposits Total. 11,124 3,380 124 11,188 .3,642 222 11,527 3,748 351 11,104 4,000 256 11,158 4,032 98 +34 +652 -26 +0.3 +19.3 -21.0 14,028 15,052 15,626 15,360 15,288 +660 +4.5 While the total earning assets of the Federal reserve banks have remained fairly constant, there has been considerable change in their character. The increase in loans and discounts as a result of increased demand on the part of member banks for accommodation, principally from the agricultural districts, has been offset by a corresponding decline in holdings of United States securities and bills purchased in the open market. The principal changes which have occurred in the condition of the Federal reserve banks since June 28, 1922, are shown in the following table: [In millions of dollars.] J u n e 28, . N o v . 1, 1922. 1922. J a n . 3, 1923. J i m e 27, 1923. Oct. 31, 1923. Change since J u n e • 28; •19221 A m o u n t . Per cent. Discounts P u r c h a s e d bills U n i t e d States securities Total. T o t a l reserves Federal reserve n o t e s i n a c t u a l circulation R a t i o of t o t a l reserves t o deposit a n d Federal reserve n o t e liabilities c o m b i n e d . . . per c e n t . . 469 1.54 557 588 261 360 628 255 456 775 204 135 884 205 92 +415 +51 -465 +88.5 +33.1 -83.5 1,180 3,148 1,209 3,212 1,339 3,163 1,114 3,202 1,181 3,191 +1 +43 +0.1 + 1.4 2,124 2,309 2,411 . 2,227 2,225 + 101 + 4.8 77.5 70.0 71.3 76.9 76. 3- Since November 1, 1922, holdings of United States securities aiid purchased biQs have declined from $621,000,000 to about $297,000,000, while loans and discounts have risen from $588,000,000 43 SECRETARY OF THE TREASURY. to about $884,000,000. At the present time the former constitutes about 25.1 per cent of the total earning assets of the Federal reserve banks compared with 51.4 per cent a year ago. The slightly increased demand for currency has been met largely by paying out gold and silver certificates and in consequence there has been little change in the volume of Federal reserve notes outstanding. • The changes in the volume of credit ana business have been reflected in a measure in the movement of interest rates, which showed substantial advances between the middle of 1922 and the spring of 1923, and then remained comparatively. stable until the seasonal deraands of autumn resulted in a stronger tendency. The general tendency during the year of the interest rate for various classes of paper is shown by the following table, which gives the average monthly rates on oall loans, 4 to 6 months' commercial paper, 4 to 6 months' certificates of indebtedness, and prime 90-day bankers' acceptances: 4 to 6 4to6 months' months'cer-l Prime 90Call loans. prune com- tificates day bills. mercial ofindebtpaper. , edness.i' Date. October November. December.. January.... February.. March April May June July August September. October 1922. 1923: Percent. 4.83 4.96 4.82 Per cent. : 4.60 •4.83 4.69 4.31 4.94 5.24 4.99 4.68 5.04 5.08 4.93 4.92 4.68 4.40 4.88 5.03 5. 09 5.03 5.00 5.00 5.23 5.41 5. IP Per cent. \ Per cent. 3.69 3.59 • 4.00 3.68 4:00 3.50 • 3.64 3.62 4.09 4.16 4.04 3.86 3.90 3.87 4.10 • 4.23 3.98 4.00 4.00 4.09 4.13 4.13 4.13 4.13 4.13 4.13 1 Average for week coritaining the 15th of the month. In February and March of this year the three Federal reserve banks which had been maintaining their discount rates on a 4 per cent basis raised them to 4^ per cent, thus making the discount rates for a;ll Federal reserve banks uniform. The present riates are still slightly above the rates on bankers' acceptances, but are now about three-fourths of 1 per cent less than the prevailing rate on commercial paper. After the passage of the agricultural credits act, referred to elsewhere in this report, the Federal reserve banks of Boston and Philadelphia established a 5 per cent rate for agricultural and livestock paper, maturing after six but within nine months. All other Federal reserve banks established a 4^ per cent rate for this class of paper. The changes in discount rates on paper maturing within six months are shown in the table following. 62166--FI1923 5 44 •REPORT' OJST T H E District. Boston..;.. •. New York PhiladfelpJiia. Cleveland Richmoiid'.... Atlanta Chicago , St. Louis.. Minneapolis... Kansas City... Dallas San, Francisco, FINANCES. High point. N o v . 1, 1921. P e r cent. P e r cent. 7 57 5 6 5 '6 H 6 6 6 7 6 6 6 .7 6 6 6 . 7 6 6 5^ / Nov. 1, 1923. N o v . 1, 1922. P e r cent. \ Per cent. ^ . ^4 J j ^4i ^ • •4i ^4^ ^ \ 4i • 4i '• 4i ^ 4i 4J 4i 4i 4J FEDERAL FARM LOAN SYSTEM. Federal intermediate credit banks. The agricultural credits act of 1923 amended the Federal farm loan act and the Federal reserve act, for the purpose of increasing the facilities for extending credit to the farming and livestock industries. I t provided for 12 Federal intermediate credit banks to be established in the same cities as the 12 Federal land banks. The officers and directors of the several Federal land banks are ex officio officers and directors of the intermediate credit banks, which are placed under the supervision and control of the Federal Farm Loan Board. As the name suggests, the purpose of these banks was to furnish credits of intermediate maturities, not covered either by the shorttime credits of the Federal reserve banks or the long-time loans of ,the Federal land banksi Under rules and regulations prescribed by the Federal Farm Loan Board the intermediate credit banks are authorized to discount agricultural and livestock paper for and purchase it from banks, agricultural credit corporations, incorporated livestock companies, savings institutions, various kinds of farmers' cooperative associations, and other intermediate credit banks. They may also make direct loans to such cooperative associations when the loans are secured by warehouse receipts or by mortgages on livestock. The loans, advances, and discounts made by the intermediate credit banks must have a maturity at the time they are made of not less .than six months and not more than three years. To provide necessary funds for making discounts, loans, or advances, intermediate credit banks are authorized to issue and sell collateral trust debentures with a maturity of not more than five years. The rate of interest on such debentures may not exceed 6 per cent and the amount outstanding aib any one time must not exceed ten times the paid-in capital and surplus of the bank. The rates of interest or discount are fixed by each intermediate credit bank subject to the approval of the Federal Farm Loan Board. After an intermediate credit bank has issued debentures, the SECRETARY OF THE TREASURY. 45 rate of discount may not exceed :by more than 1 per cent the rate borne by its last preceding issue of debentures. Each intermediate .credit bank has a subscribed, capital stock of $5,000,000, all subscribed by the Secretary of the Treasury. These subscriptions are subject to call in whole or in part by the directors of the banks upon 30 days' notice to the Secretary of the Treasury and with the approval of the Federal Farm Loan Board. Pursuant to the provisions of the act, charters have been granted by the Farm Loa;n Board to 12 intermediate credit banks, and the machinery in the several districts has been properly organized, for the seryice contemplated. The rediscounts made by the intermediate credit banks from the date of their organization to November 10, 1923, amounted to $7,686,630. Dm'ing the same period the amount of direct loans and advances to cooperativemarketing associations aggregated $24,002,520. The commodities financed were wheat, cotton, wool, livestock, tobacco, redtop seed, and canned fruit. , ; jI, While the act authorized a,total :Capital of $60,000,000 for the 12 intermediate credit banks, to be subscribed by the United States Treasury^; only $18,000,000 has been called up to this time. This policy has been followed because it is desired to hold as much as possible of the Government,capital in reserve for emergency use and also to acquaint the public, with: the character of debentures offered, with a view- to establishing a market for them. An offering of $10,000,000 of ,4i per cent debentures dated August 1, 1923, was purchased at par by 25 of the leading, banks of the country. On August 30 an additional $450,000 of 4J per cent debentures were sold, and on September 10, $50,000. On October 11 another offering was made of $10,000,000 debentures at 4^ per cent, with a maturity of six months. -The entire amount was purchased by practically the s^me group of banks that purchased the first off'ering. ! This legislation wa^ of somewhat an experimental character, the education of the farmer to its use has proceeded slowly, and the investing public, has not yet become accustomed to the debentures. What place intermediate credit banks will ultimately take in our credit structure can not now be clearly foreseen. Federal land banks. Amendments to the Federal farm loan act, contained in the agricultural credits act, provided that the board of directors of each Federal land bank should.be increased to seven, and that, of this number, three local directors should be elected by the National Farm Loan Associations and the borrowers through agencies, three district directors should be appointed by the Farm Loan Board, and one director at large should be selected by the Federal Farm Loan Board 46 REPORT ON T H E FINANCES, from the three persons who should have received the greatest nmnber of votes for nominee for director at large cast by the associations and the borrowers through agencies. Pursuant to these provisions, elections were conducted and appointments made, so that new directors were installed by June 5, 1923, when the banks began to operate under the new provisions of the law. The act also provided that after June 30, 1923, the expenses of the Federal Farm Loan Bureau should be borne by the banks of the systein. Accordingly arrangements havebeen made for the assessment of the Federal land banks and jointstock land banks for that purpose. On account of the additional duties imposed on the Farm Loan Board in the administration of the 12 intermediate credit banks, the number of members of the board was increased from five to seven. Other amendments permit the Federal land banks to loan to any one individual as much as $25,000, instead of $10,000, as heretofore, and, under certain conditions, to issue consolidated bonds. The volume of business during the last fiscal year was the largest in the history of the Federal land banks. From their organization in the spring of 1917 until June 30, 1923, the loans of these banks aggregated $789,703,104; of which $214,712,015 were made during the last fiscal year. The earnings of these banks during the fiscal year under review amounted to $5,987,993, as compared with $9,459,176, during their entire previous existence. Dm^ing the last fiscal 3^ear Government stock in the Federal land banks was reduced to $3,086,070. After increasing their reserves from $2,124,000 to $3,876,500, meeting current operating expenses and declaring regular annual dividends of $1,979/882, the banks were able to make a disbursement to stockholders of a special cumulative dividend of $1,029,691. After consummating these transactions there remained on hand, as surplus and undivided profits, the smn of $3,524,292. During the last fiscal year the Farm Loan Board sold $228,000,000 of farm-loan bonds, bearing interest at the rate of 4J per cent; and on May 1, 1923, the several Federal land banks exercised their option to call $55,032,000 of 5 per cent bonds, which were paid off and canceled. The National Farm Loan Associations, the subsidiary organizations through which the Federal land banks transact business in the various counties of their respective districts, increased in number during the fiscal year under review, from 4,388 to 4,538. Since the establishment of the system, the Farm Loan Board has granted tiharters to 4,774 of these organizations, and 236 of them have been liquidated through consolidation with other associations operating in their vicinity. As the associations owned on June 30, 1923, $37,254,280 of the total capital stock of the Federal land banks, amounting to $40,503,775, and no dividends are paid on the stock SECRETA.RY OF T H E TREASURY. 47 held by the United States Government, the associations received 99 per cent of the dividends declared by these banks. Individual subscribers hold $2,460 and borrowers through agencies $160,965 of the capital stock of the Federal land banks. Joint-stock land banks. During the last fiscal year charters were issued to 28 joint-stock land banks, and one bank was liquidated by consolidation with another in the same territory, so that there are now 70 banks in active operation, covering the entire country, with the exception of the New England States, Delaware, Florida, and New Mexico. From the beginning of the system to June 30, 1923, the aggregate of loans made by these banks was $370,337,934, of which $231,059,320 were made during the last fiscal year« Earnings of the joint-stock land banks for the fiscal year under review amounted to $3,014,210, compared with $2,197,785 during their entire previous existence. THE W A R FINANCE .CORPORATION. The War Finance Corporation continued to function during the year under the act of August 24, 1921, which gave the corporation authority to make advances for agricultural purposes. Originally that act provided that the corporation should cease active operations on July 1, 1922. The Congress, however, by act of June 10, 1922, extended until June 30, 1923, the period during which it was authorized to make advances, and this period was further extended, by the agricultural credits acts of 1923, to March 31, 1924. The peak of the corporation's activities was reached early in 1922. At that time the full effect of the loans made and authorized by it was apparent, and a general improvement in banking and agricultural conditions aU over the country had set in. With the continuation of t h a t improvement, the applications for advances steadily declined. The demand for assistance from the corporation during the past year has been relatively small. The loans authorized for agricultural and livestock' purposes since: the • l a s t ; annual report aggregated $66,468,240, including$l,892,714tobanking and financing institutions, $8,435,526 to livestock loan companies, and $56,140,000 to cooperative marketing associations. Of these sums and previous authorizations $2,667,309 was actually advanced to banking and financing institutions, $6,491,608 to livestock loan companies, and $16,866,459 to cooperative marketing associations, a total of $26,025,376. The repayments received by the corporation on account of its agricultural and livestock loans, representing voluntary liquidation, clearly reflect the improvement in the general agricultural and banking situation. From November 15, 1922, to October 15, 1923, these repayments amounted to $96,889,896, of which $53,143,711 was repaid by banking and financing institutions, $23,664,793 b}^ livestock loan companies, and $20,081 ;392 by cooperative marketing associations. 48 REPORT ON THE FINANCES. Since the passage of the act of August 24, 1921', the cdrporati()n has approved advances for agricultural and livestock purposes aggregating $466,753,027, of which $286,744,764 was actuaily advanced. The repayments received by the corporation oh account of its agricultural and. livestock loans totaled $198,762,692, leaving a balance outstanding on October 15, 1923, of $87,982,072. On the same date loans made under the war powers of the corporation ^nd under its authority to finance exports were outstanding to the extent of $28,290,788. • * •• -. The War Finance Corporation is a temporary organization, and under existing law its authority to make advances wUl terminate on March 31, 1924. There does not appear to be any necessity for a further extension of this authority, especially in view of the fact that the Congress, in the agricultural credits act of 1923, passed at the last session, has made provision for a permanent system of agricultural credits. -:/ FARMERS' SEED-GRAIN LOANS. The provision incorporated in the agricultural appropriation act of 1921, approved May 31,, 1920, providing for release of those farmers whose crops were failures, as defined in the act, from repayment of the amounts borrowed from the Government for the purchase of seed wheat, was reenacted by the act of Congress approved February 26, 1923, and was extended to include rye and oats, with the further provision that farmers who had made pajonents on their loans prior to May 31, 1920, and whose crops were failures, should be reimbursed on account of such payments from the guaranty fund. The Treasury Department has continued to release those whose crops were failures, as defined in the act of February 26, 1923, from repayment of the amoimts borrowed from the Government for the purchase of seed wheat, and is releasing from repayment those to whom loans were made on account of seed rye and seed oats. The Treasury is also making refunds in accordance with the provisions of the act of February 26, 1923. . The following table shows the amount of loans, the amount released, the amount of principal collected, the amount of interest collected, contributions to the guaranty funds, balance of principal outstanding uncollected, and the amount of refunds made, as of October 31, 1923: Federal l a n d bank. Amount loaned. Principal collected. Principal released. Balance of principal uncollected. Interest collected. Guaranty funds. Amount refunded u n d e r act F e b . 26, 1923. W i c h i t a . . . . . . . . $1,891,132.75 $1,365,950.99 $298,588.52 $226,593. 24 $75,295.32 $246,489.45 $90,344.33 67,127.86 264,983.91 1,764.88 443.20 34,055.41 St. P a u l 358,370. 45 26,258.68 10,361.03 1,254,593.50 686,424.97 478.30. , 24.15 1,951,379.50 Spokane 4,200,882.70 1,443,439.88 1,818,165.93 939,276.89 77,538.50 246,956.80 124,399.74 49 SECRETARY OF THE TREASURY. PUBLIC-DEBT TRANSACTIONS. During the fiscal year 1923 bonds, notes, and certificates of indebtedness amounting to $7,057,189,860 were issued against cash receipts, and bonds, notes, and certificates of indebtedness amounting to $7,323,073,300 were discharged by payment. During the year $3,806,933,390 face amount of bonds, notes, and certificates of indebtedness were issued, and a corresponding face amount canceled through exchanges, etc., none of which affected the principal amount outstanding. On all these accounts 3,491,569 pieces were issued, and 14,376,721 pieces were retired. On July 1, 1922, the outstanding liabilities on account of Treasury war-savings certificates were $807,901,705.44. The net cash receipts, plus discounts accruing during the year, amounted to $217,940,561.29, retirements through payment amounted to $641,355,822.75, and there remained outstanding on June 30, 1923, liabilities of $384,486,443.98, including $47,287,769.95 accrued discount. Retirements of the interest-bearing debt chargeable against ordinary receipts through established accounts amounted to $402,957,691.10, as follows: Cumulative sinking f u n d . . . . . . . . . . , $284,018, 800.00 Purchases from repayments of loans to foreign Governments 32,140,000.00 Redemption of bonds received in discharge of interest due on obligations of foreign Governments 68, 752, 950.00 Purchases from franchise tax receipts from Federal reserve b a n k s . . . 10, 815, 300.00 Redemptions of bonds and notes received for Federal estate and inheritance taxes , 6, 675, 750. 00 Redemptions account of miscellaneous gifts, forfeitures, etc 554, 891.10 Total..... 402,957, 691.10 The following securities were retired on the above accounts: First 3 ^ 8 . First 4!s. ^ First 4 i ' s Second 4's Second 4i'8 Third 4i's Fourth 4i's Treasury b o n d s . : $3,000.00 1, 200. 00 80, 350. 00 22,100. 00 I l l , 533,150. 00 66,000, 250. 00 16, 817, 600. 00 8,000,00 Panama 3 ' s . . . . . . , $200,000.00 Victory 4 i ' s . 187, 576,800. 00 Victory 3|'8. 9, 743,900. 00 Treasury notes. 10,971, 300. 00 Treasury savings certificates, series 1923 41.10 Total 402,957, 691.10 For details regarding public-debt transactions as conducted during the year, attention is invited to Exhibits 1 to 23 appearing on pages 134 to 182 of this report. Cumulative sinking fund. The cumulative sinking fund was established by section 6 of the Victory Liberty loan act, approved March 3, 1919, and became effective July 1, 1920. The fund as established applied only to the retirement of bonds and notes issued, under the war loan acts and outstanding on July 1, 1920; it did not apply to bonds and notes 50 REPORT ON T H E FINANCES. issued after July 1, 1920. Accordingly the retirement of bonds and notes issued in refunding outstanding debt was not covered. This situation was called to the attention of the Congress and the original act was amended by the act approved March 2, 1923, so as to provide that the fund may be applied to the retirement of bonds and notes issued after July 1, 1920, for refunding purposes, as well as to the retirement of bonds and notes issued before that date. During the fiscal year 1923, $284,156,439.19 became available for purposes of the sinking fund, and $284,149,754.16 was expended. From the time the fund was established on July 1, 1920, to June 30, 1923, $821,165,050 principal amount of debt has been discharged through che fund, the actual expenditures on account of such principal a,mount being $813,476,232.82. I t is estknated that for the fiscal year 1924, $297,144,300 will be available for sinking fund expenditures, and t h a t for 1925, $310,000,000 will be available. The amendment to the sinking fund act, above referred to, appears as Exhibit 74 on page 392 of this report. A detailed report, of sinldng fund transactions will appear in special report separately communicated to the Congress. Temporary bonds outstanding. I t will be recalled that all 4 per cent and 4J per cent coupon bonds of the several Liberty issues were issued in temporary form, with a limited number of coupons attached, and that such temporary bonds after maturity of such attached coupons became exchangeable for other bonds with all subsequent coupons to maturity attached. These exchanges began more than three years ago, yet on June 30, 1923, 583,129 temporary bonds, in face amount $45,076,700 had not been presented for exchange, and meanwhile, of course, some three years' interest, represented by past due coupons, has accumulated in favor of the holders. The following recapitulation of transactions in these temporary bonds may be of interest: Number of bonds. Issued against fullTpaid subscriptions. Issued on surrender of equal par'amount: On conversion. On exchange of registered bonds On exchange of denominations On other transaction s .-. Total issues Retirements against issue of equal par amount: On conversion On exchange for permanent bonds On exchange for registered bonds On exchange of denominations On other transactions Redemptions : ., Total retirements Outstanding June 30, 1923 Par. amount. 72,016,284 $13,948,562,700 9,513,825 508,555 7,755,274 1,880 3,171,343,700 277,369,300 3,539,080,150 232,450 89,795,818 20,936,588,300 14,890,547 41,078,064 3,596,751 28,124,855 3,950 1,518,522 3,746,352,550 10,369,239,750 1,605,875,800 3,539,257,850 1,343,100 1,629,442,550 89,212,689 20,891,511,600 583,129 45,076,700 SECRETARY OF T H E TREASURY. 51 It will be noted that while 89,795,818 temporary bonds were issued to the public, more than 50 per cent of these bonds were canceled through conversion and exchange transactions, and less than 42,000,000 pieces remained to be exchanged for permanent bonds. TREASURY NOTES AND CERTIFICATES OF INDEBTEDNESS. With the payment of maturing Treasury certificates. Series D-1922, on October 16, 1922, the last of the loan certificates were retired, and all subsequent issues of Treasury certificates have been sold in anticipation of income-tax receipts. From November 15, 1922, to November 15, 1923,. six issues of certificates of indebtedness, aggregating $1,226,010,000 were sold by the Treasury. During the same period three offerings of Treasury notes were made, on which total allotments amounted to $1,504,396,100. All of these offerings were well received by the investing public, and in each case oversubscriptions were reported. The previous annual report of the Secretary of the Treasury covered Treasury note and Treasury certificate operations through the offering of September 15, 1922. The next issue was announced for December 15, 1922, the last quarterly tax-paji^nent date of the calendar year. On that date there were payable about $700,000,000 of 4f per cent Victory notes called for redemption, about $200,000,000 of maturing tax certificates of indebtedness, and interest on the public debt amounting to about $100,000,000. The offering comprised, first, two series of tax certificates, one bearing 3^ per cent interest and maturing in three months, on March 15, 1923, the other bearing 4 per cent interest and maturing in one year, on December 15, 1923; and, second, a series of short-term Treasury notes, designated Series C-1925, bearing 4^ per cent interest and maturing in two and one-half years, on June 15, 1925. The combined offering of certificates was for $400,000,000, or thereabouts, while the offering of notes was for $300,000,000, or thereabouts, with the right reserved to the Secretary of the Treasury to allot additional notes to the extent that 4J per cent Victory notes were tendered in payment. The state of the Treasury at the time of these offerings was described in detail in a circular letter to the banking institutions, dated December 7, 1922, which is attached as Exhibit 25, page 184. Subscriptions closed on the day of issue, and aggregated $848,387,700 for the combined offering of certificates and notes. Allotments were made in full on all subscriptions for certificates of indebtedness and on all subscriptions for Treasury notes for which 4 | per cent Victory notes or Treasury certificates of indebtedness maturing Decerhber 15, 1922, were tendered in payment. Cash subscriptions for Treasury notes were allotted on a graduated scale, preference being given to smaller investors. Allotments on the combined offering aggregated $780,191,200, of which $310,978,000 was 52 REPORT ON T H E FINANCES. for certificates and $469,213,200 for Treasury notes. Of the certificates allotted, $113,744,500 was for the March 15, 1923, maturity and $197,233,500 for the December 15, 1923, maturity. On January 9, 1923, the Treasury announced an "offering of 4^ per cent Treasury notes, designated Series A-1927, dated January 15, 1923, and maturing in a little less than five years, on December 15, 1927. The offering ^was for $300,000,000, of thereabouts, with the right reserved to the Secretary of the Treasury to allot additional notes to the extent that 4-| per cent Victory notes or unregistered war-savings certificates of the series of 1918 were tendered in payment. Cash subscriptions closed at the close of business January 13, 1923, and allotments were made on a graduated scale with preference to subscriptions of $100,000 or less. Exchange subscriptions were received up to the close of business on January 15, 1923, and were allotted in full. Total subscriptions amounted to $581,550,800, of which $366,981,500 was allotted. The offering was intended, with the balance already on hand, to provide for the called Victory notes and 1918 war-savings certificates which remained to be presented, and at the sarae time to coyer the Treasury's current cash requirements between that date and the March installment of taxes. • On March 15, 1923, the first quarterly tax-payment date of the calendar year, there was payable about $366,000,000 of maturing Treasury certificates together with about $135,000,000 of interest on the public debt. Called Victory notes amounting to nearly $90,000,000 and matured war-savings certificates amounting to about $75,000,000 were still outstanding and coming in steadily for redemption. To provide for these payments over and above tax receipts and to cover the Treasury's further cash requirements until the middle of May, when the Victory notes matured, an issue of tax certificates in two series aggregating $400,000,000, or thereabouts, was announced for March 15, 1923, one bearing 4J per cent interest and maturing September 15, 1923, the other bearing 4^ per cent interest and maturing March 15, 1924. Treasury certificates maturing March 15, 1923, and uncalled Victory notes were receivable in exchange for the new certificates. Subscriptions closed at the close of business March 14, 1923, with a total of $538,859,000. The amount allotted was $475,448,000, of which $154,252,000 was for the September 15, 1923, maturity and $321,196,000 for the March 15, 1924, maturity. Of the total subscriptions, $36,272,650 represented certificates for which 4 | per cent Victory notes. Treasury certificates maturing March 15, 1923, and unregistered war-savings certificates of the series of 1918 were tendered in payment. Exchange subscriptions were allotted in full. Cash subscriptions were allotted on a graduated scale with preference to smaller investors. SECRETARY OF THE TREASURY. 53 On May 7, 1923, the Treasury announced an offering of 4 | per cent Treasury notes, designated Series B-1927, dated May 15, 1923, and maturing March 15, 1927. There were outstanding at this time about $65,000,000 of 4 | per cent Victory notes which had been called for redemption December 15, 1922, and about $765,000,000 of uncalled Victory notes, making an aggregate of about $830,000,000. The May 15th offering of notes was intended, with the balances on hand, to provide for the Victory notes presented for redemption and to cover the Treasury's other cash requirements until the June installment of income taxes. The offering was for $400,000,000, or thereabouts, with the right reserved to the Secretary of the Treasury to allot additional notes to the extent that 4 | per cent Victory notes were tendered inpayment. The offering met with a quick response, and cash subscriptions, which closed May 12, 1923, amounted to $947,843,050. Subscription books for the exchanges were left open imtil the close of business May 16, 1923. Exchange subscriptions amounted t o $286,148,550, making total subscriptions on the offering $1,233,991,600. Allotments on cash subscriptions amounted to $382,052,850. Preference was given to smaller investors, $329,314,200 of the total allotments on cash subscriptions being in amounts of $100,000 or less. Exchange subscriptions were allotted in full, making* total allotments for the issue $668,201,400. The general situation at the time of the offering was discussed in a letter by the Secretary of the Treasury to the banking institutions, dated May 7, 1923, which is attached as Eichibit 28, page 190. "' The next issue was the usual quarterly operation incident to the June 15,1923, payment of income taxes and the maturity on that date of about $200,000,000 of certificates of indebtedness. Interest on the public debt amounting to about $75,000,000 was payable on the same date. Moreover, there were still outstanding Victory notes amounting to about $150,000,000 and matured war-savings certificates amounting to about $35,000,000. To provide for these requirements over and above income-tax receipts, an offering was announced on June 11, 1923, of 6-month 4 per cent Treasury certificates of indebtedness dated June 15, 1923, and maturing December 15, 1923. Subscriptions closed at the close of business June 13, 1923, aggregatmg $342,462,800 as agamst an offering of $150,000,000, or thereabouts. The amount allotted was $189,833,500, of which $38,344,000 represented allotments on subscriptions for which certificates of indebtedness maturing June 15, 1923, were tendered in payment. All exchange subscriptions were allotted in full. The offering on September 15, 1923, the third quarterly tax-payment date of the calendar year, consisted of 6-month 4J per cent Treasury certificates of indebtedness dated September 15, 1923, and 54 BEPORT ON T H E FINANCES. maturing March 15, 1924. There were payable on September 15, 1923, Treasury certificates amounting to about $290,000,000 and interest on the public debt amounting to about $145,000,000. Called and matured Victory notes in the aggregate amount of $53,000,000 and matured war-savings certificates amounting to about $30,000,000 were still outstanding and coming in slowly for payment. The offering was intended, with the balances on hand, to provide for the payments coming due in September over and above tax receipts and to cover the Treasury's further cash requirements. Subscriptions closed September 12, 1923, aggregating $553,678,500 as against an offering of $200,000,000, or thereabouts, and the amount allotted was $249,750,500. Of this amount $63,846,500 represented subscriptions for which Treasury certificates maturing September 15, 1923, were tendered in payment, all of which were allotted in full. Allotments on cash subscriptions were made on a graduated scale with preference to smaller investors. The last of the special Treasury certificates of indebtedness, commonly known as Pittman Act certificates, were retired on December 28, 1922. These certificates were sold to the Federal reserve banks during 1918 and 1919, and were deposited by them to secure Federal reserve bank notes issued imder the provisions of the so-called Pittman Act, approved April 23,1918. Under the terms of that act, Federal reserve bank notes, which replaced silver certificates withdrawn from circulation, could be issued only on deposit with the Treasurer of the United States as security therefor of United States one-year gold notes or of United States certificates of indebtedness. As the amount of one-year gold notes outstanding was limited to those issued upon conversion of United States bonds carrying the circulation privilege, it was necessary to issue certificates of indebtedness to supplement the gold notes as security for Federal reserve bank notes. For this purpose the Secretar}^ of the Treasury in August and September, 1918, issued $26,000,000 special 2 per cent Treasury certificates of indebtedness which matured in one year from the date of issue. When these and subsequent issues matured, they were regularly extended for another year, the Secretary retaining the right to retire them at any time. As silver certificates were withdrawm from circulation they were replaced by Federal reserve bank notes secured by additional Pittman Act certificates of indebtedness. Moreover, the one-year gold notes, which carried 3 per cent interest, were retired at maturity. The last issue of these certificates occurred in December, 1919, and brought the total amount then outstanding to $259,375,000. Since February, 1921, the certificates have been gradually retired, partly through the coinage of standard silver dollars under the Pittman Act and partly out of the general fund of the Treasurv^ in accordance with the plan outlined in the 55 SECRETARY OF THE TREASURY. Secretary's statement of April 1, 1921. Certificates to the amount of $167,841,000 were retired through the coinage of standard silver dollars, and the remaining $91,534,000 out of the general fund. A more detailed statement of operations under the Pittman Act is given in the article on '^Silver," pages 73 to 77 of this report. Further details concerning Treasury notes and certificates of indebtedness will be found in Exhibits 1 to 36, pages 134 to 243, and in Tables A to F, pages 492 to 511. The official circulars announcing the various offerings of Treasury notes and certificates of indebtedness, issued since the annual report of the Secretary of the Treasury for 1922, are attached as Exhibits 24 to 27, pages 183 to 190, and Exhibits 33 to 36, pages 237 to 243. The aggregate amount of certificates issued from the beginning of the war to October 31,1923, was $58,603,472,309. Of this total $21,422,925,500 represent loan certificates, $13,638,635,000 were sold in anticipation of income and profits taxes, and $23,541,911,809 comprise special issues. The following table gives in detail the unmatured Treasury certificates of indebtedness and Treasury notes outstanding on October 31, 1923: Unmatured certificates of indebtedness and Treasury notes outstanding October 31, 1923. Detail. Interest. Certificates of indebtedness: Series TD-1923 Series TD2-1923 Series TM-1924 Series TM2~1924 . . Treasury notes: Series A-1924 Series B-1924 Series A-1925 Series B-1925 Series C-1925 Series A-1926 . . Series B-1926 Series A-1927 . . . Series B-1927 ; Date. Per cent. 4 Dec. 15,1922 4 June 15,1923 Mar. 15,1923 Sept. 15,1923 t .. ... . ... : 5^ June 15,1921 5^ Sept. 15,1921 4^ Feb. 1,1922 June 15,1922 ^ Dec. 15,1922 4 | Mar. 15,1922 1,1922 4i Aug. Jan. 15,1923 4^ May 15,1923 4| Due. Dec. Dec. Mar. Mar. 15,1923 15,1923 15,1924 15,1924 Amount. 8191,517,500 . 178,649,500 321,196,000 249,750,500 94i;013,600 June Sept. Mar. Dec. June Mar. Sept. Dec. Mar. 15,1924 15,1924 15,1925 15,1925 15,1925 15,1926 15,1926 15,1927 ? 5,1927 311,088,600 380,681,100 598,355,900 299,663,900 406,031,000 615,707,900 414,922,300 355,779,900 668,201,400 .4,050,432,000 : Total 4,991,445,500 GOVERNMENT SAVINGS SECURITIES. That the habits of thrift and sound investment acquired by the American people during the World War are proving permanent in character is evidenced by the continued popular demand for Treasury savings certificates, the. only savings security now being offered by the Treasury. The last annual report of the Secretary of the Treasury contained a description of the issue dated September 30, 1922. Since that date the issue prices of Treasury savings certificates have been $20.50 for a $25 certificate, $82 for a $100 certificate, and $820 56 REPORT ON T H E FINANCES. for a $1,000 certificate. On November 15, 1923, the Secretary of the Treasury announced a change in price effective December 1, 1923. Thereafter, and until further notice by the Secretary of the Treasury. Treasury savings certificates will be on sale at about 40,000 post offices throughout the country at the following prices: $20 for a $25 certificate, $80 for a $100 certificate, and $800 for a $1,000 certificate. Apart from the selling price, the new certificates wiU correspond in all essential respects to the certificates now.on sale. This new offering will be made in connection with the redemption and exchange of about $60,000,000 of war-savings certificates, series of 1919, which mature January 1, 1924, and will afford the holders of the maturing certificates an opportunity to continue their investment in an attractive Government security. The terms of the new certificates and the regulations governing the surrender of Treasury savings certificates, issue of September 30, 1922, by collateral agents and post offices appear in Department Circular No. 329, dated November 15, 1923, attached hereto as Exhibit 49, page 295. With over $350,000,000 outstanding in Treasury (war) savings securities and a total business in Treasury savings certificates for the ca,lendar year 1923, up to and including November 15, of over $180,000,000 (maturity value), small investors in increasing numbers are turning to this form of security for the investment of slowly accumulated savings. If this class of security were not constantly available, a considerable portion of such savings would probably be lost in worthless investment. The popularity of Treasury savings certificates has been proved, and the proceeds from their sale.have reached such proportions as to become an important factor in Government financing. Their withdrawal from sale would necessiT tate the realization of a corresponding amount in some other manner, and it is the present intention of the Treasury to continue their sale indefinitely, or so long as the volume of sales justifies a continuance, and indicates that the certificates are filling a real need of the people. This program had the full indorsement of the late President Harding. The sales organization is headed by the Director of the United States Government Savings System, located in Washington, who acts under the general supervision of the Secretary of the Treasury. This director has continued as secretary of the board of trustees of the Postal Savings System with a view to coordinating the savings organizations of both departments. The Post Office Department has cooperated most effectively in the sale of Treasury savings certificates, and the thousands of post offices throughout the country constitute the chief sales agencies in the distribution of these securities. I n addition to the Washington headquarters, there is a small b u t active field organization in each of the 12 Federal reserve districts, headed by a local savings director, acting under the general super SECRETARY OF THE TREASURY. 57 vision of the director at Washington and the governor of the Federal reserve bank. The work, of these field organizations has now been definitely assigned to the several Federal reserve banks as one of their fiscal agency functions. Heretofore a portion of the expense of the field organizations has been borne by the respective Federal reserve banks, but after a decision-was reached to carry permanently a part of the public.debt in the form of Treasury savings certificates it was deemed advisable that the Treasury should bear the entire expense of their sale. Accordingly, a new arrangement was effected at the beginning of the current fiscal year whereby all such expense is borne by the Treasur}^. The Treasury's present savings program is confined to the selling of Treasury savings certificates and no longer embraces activities for the general encouragement of thrift. However, an intensive campaign for the sale of savings securities can not fail to instill in the minds of the people habits of thrift and saving, and this incidental impetus to the thrift movement is ho doubt of great value, r During the past year there has been no important change in selling methods, except that an effort has been made to increase the volume of mail-order subscriptions. . The advertising pages of magazines and newspapers have been employed for the purpose of presenting to the people of the country the investment advantages of Treasury savings certificates. Up to the present time such advertising has been in, the nature of test campaigns and its continuation will depend entirely upon the results which may be traced directly to this form of publicity. The coupons appearing in these advertisements have been keyed for the purpose of enabling the department to identify the advertising medium frorh which the coupons have been clipped. A careful check is thus kept upon the returns from each advertisement placed, as reflected in increased sales and requests for literature. Many news articles have also been published by the city and country press free of charge to the Treasury. New posters, leaflets, circulars, etc., have been distributed from time to time, in order to lend variety to the presentation of the investment features of the offering. Early in the spring of this year an attractive booklet entitled, ^^How Other People Get Ahead," was issued and received favorable comment from many sources. Requests for copies were received from every section of the country and 2,800,000 copies have been distributed. Designed as a means of contact with the American public, particularly persons with moderate incomes, it aims to show the necessity of exercising care and prudence in the management of resourced; the beneficial effects of saving; how to differentiate between good and bad investments; the danger signs of fraudulent schemes; and the essentials of sound investment. In conclusion, as a constructive means of putting good advice into effect, 58 REPORT ON T H E FINANCES. it presents the advantages of Treasury savings certificates and recommends investment in them as a forward step in thrift and saving, the habits essential to individual success and independence. In April of the present year a conference of the local savings directors was called at Washington for the purpose of working out a more permanent savings program, establishing the savings system as firmly as possible on a going basis, discussing the problems arising in the field and developing plans for closer cooperation among the directors, the Federal reserve banks, and the Washington headquarters. This conference was most helpful to all concerned and much ground was covered along the lines indicated. Every possible effort was made to induce the holders of war-savings certificates, series of 1918, which matured January 1, 1923, to exchange them for Treasury savings certificates of the current offering instead of requesting cash redemptions, and these exchanges constituted the outstanding feature of the year's campiaign. Over $1,000,000,000 worth of war savings certificates of. this series were sold, of which about $500,000,000, exclusive of accrued discount, remained outstanding at maturity. The following table shows the cash receipts from the sale of Treasury (war) savings securities, by months, from the date of the first offering in December, 1917, up to and including the month of October, 1923. The unusually large sales shown for the months of December, 1922, and January and February, 1923, resulted from the exchanges just referred to. Month. 1918 1920 S10,236,451.32 $24,559, 722.15 41,148, 244.22 53,967, 864. 49 60,972, 984.12 57,956, 640.12 58,250, 485.00 211,417, 942.61 129,044, 200.62 97,614, 581.48 89,084, 097.31 73,689, .00 63,970, 813.47 $70,996,041.14 15,816,539.27 10,143,081.68 9,572,728.48 6,558,198.33 5,269,535.51 5,176,865.12 6,201,164; 07 6,111,944.78 7,316,467.60 8,020,436.67 9,124,292.13 $8,987,462.59 5,221,213.48 6,063,359.22 4,815,437.69 3,552,962.19 3,107,909.72 2,359,274.63 2,231,509.77 1,814,705.89 1,889,750.48 1,912,967.05 1,934,452.46 10,236,451.32 961,677,421.59 160,307,294.78 43,891,005.07 1921 1922 January February.., March April May June July August September.. October November.. December.. $2,646 .396.88 3,324! 164. 22 2,838, 416.58 2,471, 904. 05 1,682, 606.72 1,481, 271.98 1,403, 106.07 1,321, 198. 52 1,083, 602.12 1,209, 074.50 1,285, 573.34 2,245!.408.97 $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 4,834,624.68 18,441,740.90 $55,024,798.53 27,003,547.16 13,355,434.95 9,473,432.77 7,842,896.64 8,257,445.35 8,108,997.13 7,113,879.99 6,543,062.03 7,433,534.57 Total. 22,992,723.95 142,249,662.00 150,157,029.12 January February.. March April May June....... July August September. October November. -December.. Total. Month. 1923 SECRETARY OF THE TREASURY. 59 As will be seen from the above table, sales and exchanges since the new issue was offered in December, 1921, have been most gratifying and make quite a substantial total. It is the Treasury's object now to consolidate these gains and keep the certificates on a steady sales basis. The money which the Treasury is receiving from the sale of the Treasury savings certificates is the best possible money to get into Government securities, partly because the securities are better distributed among the people than perhaps any other Government security, and partly because of the attractiveness of the terms from the point of view of both the Government and the investor. If the Treasury could sell something like $20,000,000 of Treasury savings certificates a month, or about $250,000,000 a year, and keep to such a program year after year it would mean that it could carry $1,000,000,000 or thereabouts of the public debt in this form of security. The present policy is shaped toward the accomplishment of such a program, and its realization would be a real contribution to the financing of the Government. Redemption and exchange of 1919 war-savings certificates. The Treasury's announcement of November 15, 1923, regarding the terms of Treasury savings certificates on and after December 1, 1923, included the opportunity offered to all holders of war-savings certificates, series of 1919, to exchange their certificates which will mature and become redeemable on January 1, 1924, and will cease to bear interest on that date, for the new issue of Treasury savings certificates. For the convenience of holders of the maturing 1919 certificates the Treasury will offer special facilities, first, for their exchange into the new issue of Treasury savings certificates, v/ith provision for advance exchanges beginning December 1, 1923, and, secondly, for cash redemption on and after January 1, 1924, with provision for presentation in advance for redemption as of that date. The regulations governing the redemption and exchange of warsavings certificates, series of 1919, appear in greater detail in Department Circular No. 330, attached hereto as Exhibit 50, on page 304. This circular contains a copy of Form P. D. 830, to be executed by applicants for redemption or exchange of these maturing certfficates, on the reverse side of which appear detailed instructions and examples of exchanges which may be made. The same facilities will be offered by the Treasury for the redemption and exchange of Treasury savings certificates, series of 1919, which will mature and become redeemable on January 1, 1924, and will cease to bear interest on that date. The regulations governing their redemption and exchange appear in detail in Department Circular No. 331, attached hereto as Exhibit 51, on page 310. This circular carries a copy of Form P. D. 831 similar to Form P. D. 830 above referred to. 62166—n 1923 6 60 . REPORT ON T H E FINANCES.^ Departhient Circular No. 108, setting forth regulations with respect to'United States war-savings certificates, was again revised, uiider date of August 1, 1923, and is mcliided in this report as Exhibit 48, page:271. MARKET PRICES OF GOVERNMENT BONDS. There has been comparatively little change in the market prices of Liberty bonds and Treasury bonds during, the past 12 months, and all issues have fluctuated within narrow limits.. The following •table gives the low points reached, the closing quotations on July 15 and December 15 for the years 1920, .1921, and 1922, and the closing quotations for the 15th of each month since December 15, 1922: Market prices, of Liberty bonds, Treasury bonds, and Victory notes. First 3i's. nate. F i r s t Second Second T h i r d , 4i,'s. 4i's. 4i's. , 4's. First 4's. Fourth 4i's. Treas- Victory ury 4rs. 4}'8. i$86.30 2S83.00 8$84. 00 m i . 70 ^$82.00 6$86. 00 m2.54 Low p o i n t < $9i. 82 1920. 85.68 85.90 95.92 95.00 87.16 97.42 98.32 100.02 91.02 90.12 86.10 86.02 86.44 86.12 85.26 85.10 85.42 85.36 86.50 95.10 87.12 97.30 87.34 97.40 86.92 96.84 '87. 02 • 91.16 98.14 97. 04 100.80 100.50 100. 70 98. 80 100.82 98.78 100.48 98.10 100.52 98.14 100.34 98.74 100.54 100. 92 98.48 "$99."74' « 100.34 101.18 101.78 101.06 101.13 101.00 100.97 100.38 100.13 99.75 99.72 99.84 98.64 98.70 98.00 97.81 97.47 98.22 98.19 98.13 98.06 97.31 98.13 98.76 98.82 97.94 97.72 97.41 98.22 98.38 98.22 98.03 97.38 98.19 98.34 98.70 97.90 97.63 97.34 98.25 98.34 98.13 98.00 97.34 98.00 98.28 98.68 97.86 97.69 97.41 98.16 98.34 98.28 98.06 97.41 98.09 99:00 99.00 98.34 98.19 98.34 98.50 '98.91 98.91 98.78 ,98.28 99.19 98.60 98.86 98.00 97.78 97.66 98.25 98.38 98.28 •98.09 97.50 98.19 July 15 D e c . 15 88.88 87.90' 1921. July 15 Dec. 15 1922. J u l y 15 D e c . 15 1923. J a n . 15 Feb.15 M a r . 15 Apr.l6 M a y 15 June 15.. J u l y 16 A u g , 15 Sept. 15 O c t . 15 N o v . 15 _ . » July 9, 1921. 2 May 19,1920, » May 18,1920. < May 20,1920. e Dec. 21,1920. 99.96 100.02 99.32 99.06 99.22 99.69 99.91 99.53 99.72 99.13 99.56 8 100.20 8100.22 6 100.06 6 100.00 8 100.06 e Uncalled Victory 4^'s. The reaction in price during the latter part of 1922 was due largely to the increased commercial demands for credit and the stiffening of money^ rates during that period. The check in the growth of business activity and the greater stability in interest rates during 1923, however, have been accompanied with greater stability in Liberty bond quotations. In fact the fluctuations have been much narrower in Liberty bond prices during the year than in the prices Qi other bonds. The average price of 40 industrial and railroad bonds declined about 3^ points between November, 1922, and October, 1923, whillB the average price of the 4^ per cent Government bonds declined less than 1 point during the same period and the total range of fluctuations was less than 1 per cent. 61 SECRETARY.OF THE TREASURY. The yields on Liberty bonds have likewise shown comparatively little change during the year. The following table shows the average monthly yield of Liberty bonds. Treasury bonds, and Victory notes for each month from December, 1922, to October, 1923, as compared with July and December for each, of the years 1920, 1921, and 1922: Yields on Liberty bonds, Treasury bonds, and Victory notes.^ F i r s t Second Second second 4's. 4J's. 4i's. Third 4i's. Fourth 4i's. Treasury 4i's. Victory 4i's. P e r ct. 5.221 5.248 P e r ct. 4.546 4.594 P e r ct. 5.129 5.164 P e r ct. 5.399 5.437 P e r ct. 5.959 6.296 P e r ct. 5.523 5.556 P e r ct. P e r ct. 6.383 6.919 4.863 4.185 5.129 4.440 4.429 4.372 4.989 4.237 5.258 4.485 5.771 4.657 5.390 4.491 5.681 4.707 3.459 .3.469 3.948 4.074 4.190 4.328 4.144 4.284 3.971 4.133 4.214 4.382 4.166 4.490 4.171 4.373 3.431 . 2 3. 893 3.419 3.405 3.433 3.430 3.437 3.448 3; 478 3.496 3.512 3.521 4.070 4.088 4.139 4.147 '4, 4, '4, 4, 4. 4, 4.333 4.344 4.397 4.410 4.398 4.365' .4.364 4.367 4.381 4.416 4.344 4.335 4.401 4.414 4.404 4.381 4.399 4.391 4.398 4.425 4.132 4.120 4.175 4.191 4.169 4.133 4.132 4.135 4.149 4.196 .4.382 4.369 4.427 4.442 .4. 418 4.382 4.379 4.384 4.399 4.446 4.470 4.494 4.593 4.'619 4.574 4.547 .4. 513 4.496 4.522 4.588 4.373 4.376 4.443 4.456 4.433 4.398 4.401 4.404 4.424 4.473 First 3i's. First 4's. First 4i's. 1920. July December...,. P e r ct. 4.049 4.117 P e r ct. 4.959 4.974 1921. July December.... 4.359 3.804 1922. July December . 1923. January February March... April May:. June^: July August September... October Date. y C o m p u t e d b}'. t h e G o v e r n m e n t A c t u a r y . 4.253 4.256 4. 297 4.311 4. 287 4.266 4.265 4.272 4.269 4.309 2 4.060 2 4.097. 2 4. 326 2 4. 369 2 Uncalled V i c t o r y 4f's. Although there was an increase in the volume of credit issued by the member banks, in leading cities during the period under review, the loans of these banks secured by United States Government obligations declined from $292,000,000 on October 31, 1922, to $233,000,000 on October 31, 1923, representing a decline of approximately 20 per cent. All member banks, however, increased their rediscounts of paper secured by United States bonds and notes with, the Federal reserve banks about 53 per cent during the same period. The amount of such rediscounts on October 31,1922, aggregated $267,000,000, while on October 31", 1923, they amounted to $409,000,000. Liberty bonds and Treasury bonds and notes owned by the member banks in leading cities have shown little change. The Federal reserve, banks, however, reduced their investments in such securities from approximately $171,000,000 to $63,000,000 during the period. The table following gives the amount of holdings of the specified United States Government securities owned and held as collateral by the weekly reporting member banks and the Federal reserve banks at various dates. 62 REPORT OIST T H E FINANCES. Liberty bonds, Treasury bonds. Victory notes, and Treasury notes owned and held to secure loans. [In millions of dollars.] Date. Weekly reporting m e m b e r Liberty Federal reserve b a n k s .i banks.I 1 bonds, Treasury bonds, Per Victory Per cent of notes, cent of H e l d as and a m o u n t O w n e d . H e l d as T o t a l . a m o u n t T o t a l . collatO w n e d . collatTreasury ! outouteral .2 eral. notes' out! standstandstanding. ing. ing. 1919. ' Dec. 31 1,294 2,170 19,581 19,528 19,512 808 801 3 851 1,023 912 909 1,831 1,713 1,760 9.35 8.77 1 9.02 19,460 19,573 19,457 • 8 883 3 913 8 977 672 546 513 1,555 1,459 1,4.90 7.99 7.45 7,66 19,319 20,179 19,775 31,571 81,910 3 2,041 285 292 290 1,856 2,202 2,331 9.61 10.91 11.79 1920. J u n e 30 O c t . 31 Dec.31 1921. J u n e 30 Oct. 31 Dec.31... 1923. Jan.31 Feb.28 Mar. 31 A ^ r . 30. May 31 J i m e 30 July31 Aug. 3 1 . . . . Sept.30 Oct. 3 1 . . . : 1,070 1,072 .5.30 52 32 *2 938 964 953 940 966 955 4.80 4.95 4.89 3 10 3 13 609 436 438 619 449 469 3.18 2.29 2.41 172 . 267 308 377 438 503 1.95 2.17 2.64 469 508 538 497 495 439 433 437 459 472 2.33 2.53 2.68 2.48 2.49 2.22 2.19 2.21 <2.33 <2.41 31 1922. J u n e 30 O c t . 31 Dec.31 2 10.72 876 20,240 ;. 20,119 '2,152 2,076 . 20,118 2,078 1 20,076 2,010 •20,044 2,092 • 19,897 19,755 , 2,110 19,728 j 2,057 2,035 19,689 1,990 • * 19,658 1,987 4 19,620 276 283 265 273 267 251 231 230 258 233 8 205 3 171 195 j 12.07 2,428 3 149 11.73 2,359 8 160 11.67 2,343 8158 n.39 2,283 3-134 1L86 • 3138 2,359 11.95 2,361 3 75 2,288 1 11.60 3 69 11.50 2,265 3 77 2,248 U 1 . 4 4 875 2,220 < 11.31 3 63 320 348 380 363 357 364 1 364 360 384 409 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 Includes a few loans secured by certificates of indebtedness. ' Partly estimated. < Preliminary,. DEPOSITS OF GOVERNMENT FUNDS. There was no change during the fiscal year ended June 30, 1923, in the Treasury's established policy with respect to deposits of Government funds. The Government has no surplus funds to deposit, and, consequently, in this phase of the Government's business, as in all others, the Treasury is committed to a policy of the utmost economy consistent with proper administration. Throughout the year, therefore, continued pressure was brought to bear to keep the deposits of Government funds with depositaries within the limits prescribed by the GoveiTiment's actual requirements. The depositary system of the Treasury was likewise unchanged. This system, in addition to the Treasurer of the United States, was comprised, as heretofore; of the Federal reserve banks and branches, special depositaries, national bank depositaries, both general and limited, foreign depositaries, and insular depositaries,, including the treasurer of the Philippine Islands, The number 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 1922 and at the end of the fiscal year 1923 are shown in the abstract of report of the division of deposits on page 468, SECRETARY OF THE TREASURY. 63 Since the establishment of the Federal reserve system and the discontinuance of the subtreasuries of the United wStates the Federal reserve banks and their branches have become the major unit of the Treasury's depositary system. The greater part of the Government's disbursements are now made through the Federal reserve banks and their branches, and, consequently, in order that funds may at all times be available to meet these disbursements, it is essential that as large a percentage as possible of the current revenues of the Government be deposited direct with such banks. Generally speaking, the balances of Government fluids with Federal reserve banks and their branches are not fixed in amount, but are governed, in a large measure, by the ebb and flow of the Government's receipts and expenditures. In proportion to the volume of Government business handled by the 12 Federal reserve banks and their 23 branches, the average balances carried on their books from day to day to the credit of the Treasurer of the United States are relatively small. The special depositaries, which function through the Federal reserve banks, are a distinct and important branch of the depositary system of the Treasury. The primary purpose of these depositaries is to provide facilities for the wide distribution of Government securities offered for sale from time to time. In this respect they have, since their establishment, proven of great value, to the Treasury. Under this plan any incorporated bank or trust company, qualified as a special depositary of public moneys, desiring to purchase Government securities, which, under the terms of the official offering, may be paid for by credit, may make payment by that method for securities allotted it for itself or its customers, thereby retaining the proceeds in the form of deposits until withdrawn, as needed, to meet current disbursements of the Government. At the close of the fiscal year 1923 there were 8,110 special depositaries located in all sections of the country, 3,990 of which were national banks and 4,120 State banks and trust companies. The balances of public moneys held by these special depositaries are self-regulating and the total of such balances varies substantially in direct proportion to the refunding operations of the Treasury. The greater part of all Government deposits with depositary banks from day to day throughout the past fiscal year were held by special depositaries. Special depositaries of public moneys are required by Treasury regulations to pay interest on daily deposits at the rate of 2 per cent per annum. The interest received on these deposits during the fiscal year ended June 30, 1923, was $4,836,239.72. The total amount received from April 24, 1917, to June 30, 1923, was $57,686,531.45. This is shown by semiannual periods and Federal reserve districts in the statement following. 64 REPORT ON T H E FINANCES. TABLE No. 1.—Interest collected to June 30, 1923, 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 3, 1919. F e d e r a l reserve district. Boston New York Philadelphia Cleveland Richmond : . Atlanta N e w Orleans b r a n c h . Chicago St. L o u i s . . . . . . Minneapolis K a n s a s City.' Dallas ' San Francisco Total. F e d e r a l reserve district. Boston .New Y o r k Philadelphia Cleveland Richmond .. Atlanta N e w Orleans b r a n c h Chicago.: St. Louis . Minneapolis Kansas City. Dallas... San Francisco Total Federal reserve district. Boston New York Philadelphia Cleveland Richmond Atlanta N e w Orleans b r a n c h Chicago St. Louis..] Minneapolis K a n s a s City., Dallas. S a n Francisco Total..' April 24 t o J u n e 30, 1917. S5,340.47 338,480. 60 1,044.64 J u l y 1 t o Dec. J a n . 1 t o J u n e J u l y 1 t o Dec. 31,1917. I 30,1918. I 31,1918. 1,353. 62 2,726.51 $495,044.28 2,418,335.72 200,27.6.04 290,482. 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 $757, 345.98 2,486, 301.63 557, 068.79 803, 219. 84 128, 860.72 96, 086. 74 60, 320; 38 658, 048.19 268, 726.24 168, 309.21 150, 897.61 80, 191. 52 208, 486.34 SI,-138,915.47 6,720, 162.97 1,059,668.16 872, 392.10 109,503. 64 144, 165.^99 79, 005.33 974, 33^.63 . 403,488.76 164, 790.29 332, 145.49 ?68, 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. J u l y 1 t o 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, 899. 81 369, 783.56 311, 793.53 309, 106. 79 . 132, 651.09 590, 811.02 $563,524.88 3,336,357.90 529,102.81 530,146. 39 555,390. 68 153,908.04 40,666.90 817,172. 84 264,058.53 171,863. 85 159,047.57 182,127.50 246,486.13 $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 Jan. 1 to June 30, 1921. J u l y 1 t o Dec. 31, 1921. Jan. 1 to June 30. 1922. $197,098.16 905,079.42 203,114.68 170,999.61 61,32L73. 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 10,288.39 356,846.54 93,306.68 74,455.39 63,463.86 49,760.21 103,123.90 $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 1,864,890.68 3,073,66L14 2,884,257.21 252.06 '\623.*53* Federal reserve district. Jan. 1 to June 30,1923. J u l y 1 t o Dec. ...31,1920. J u l y 1 t o Dec. 31, 1922. $109,546.16 693,384.57 172,844.37 207,286.49 85,398.34 38,485.08 32,393.11 189,668.39 48,373.71 81,572.42 I 58,396.98 29,366.09 118,043.85 1,864,759.55 Total. Boston New York Philadelphia : Cleveland Richmond Atlanta N e w Orleans b r a n c h Chicago St. Louis Minneapolis..'. K a n s a s City Dallas San Francisco $291,740.35 1,137,074.57 315,175.'60 155,886.06 128,889.67 71,747.98 18,198.15 372,426.72 115,628.15 57,523.22 72,323.95 101,254.81 133,610.94, $5,201, 361.91 26; 242,332.67 4,422, 428. 80 4,726,514.68 1,722, 061.97 917, 792.87 470,559.71 5,800, 611.32 1,931, 271.01 1,290, 030.86 1,440, 166.12 1,103,205.70 2,418, 193. 83 G r a n d total 2,971,480.17 57,686,531.45 SECRETARY OF THE TREASURY. 65 There are two distinct classes of national bank depositaries, namely, (1) general national bank depositaries, which are authorized to carry on their books fixed balances to the credit of the Treasurer of the United States aS: the basis for the transaction of essential Government business, as well as deposits to the official credit of other duly authorized Government officers, and (2) limited national bank depositaries, which are authorized to carry no balances to the, credit of the Treasurer of the United States but are designated and maintained solely for the purpose of accepting deposits made by the United States courts and their officers, by postmasters, and by other duly authorized Governinent officers for credit in their official checking accounts. Although general national bank depositaries have been materially reduced in number and in the amount of the Treasurer's balances maintained therewith during recent years as a result of the increased utilization of the Federal reserve banks and branches as depositaries and the necessity for strict economy in deposits of Government funds, nevertheless they form a very important part of the depositary system. Because of the widespread activities of the Government many disbursing and receiving officers of the Government, requiring depositary facilities, are located at places from which the facilities afforded by the Federal reserve banks and their branches are not readily accessible. At such places, therefore, it is necessary to maintain ge^neral national bank depositaries. On June 30, 1923, there were 312 general national bank depositaries, with t o t a l deposits of $6,854,423.67 to the credit of the Treasurer of the United States. The balances carried with such depositaries to the credit of the Treasurer of the United States are regulated in direct proportion to the amount and character of the Government business transacted. During the year under review, as a result of the surveillance to which the accounts of depositaries are subjected periodically, 35 general depositaries, carrying aggregate fixed balances of $18S,d00 to the credit of the Treasurer of the United States, were discontinued, and reductions in the fixed balances held by 88 other such depositaries were eff'ected, totaling $1,500,500. These reductions, however, were, in a measure, offset by the designation of 12 additional general national bank depositaries with authority to maintain fixed balances aggregating $146,000, and increases in the fixed balances of 27 general depositaries, amounting to $903,000. The net result of these changes, therefore, was a decrease of 23 in the number of general depositaries and of $634,500 in the amount of fixed balances. Additional limited national bank depositaries to the number of 86 were designated during the year and 50 such depositaries discontinued. On June 30, 1923, there were 881 limited national bank depositaries, and the amount held by them and. general national bank depositaries to the credit of Government officers, other than the Treasurer of the United States, was $19,299,629.40. 66 REPORT ON T H E FINANCES. Depositaries of public moneys in foreign countries and in the insular possessions of the United States are maintained substantially upon the same basis as national bank depositaries. During the past fiscal year insular depositaries were maintained in the Canal Zone, Porto Rico, and the Philippine Islands. Public moneys held by such depositaries on June 30, 1923, were as follows: To the credit of the Treasurer of the United States, $1,440,360.05; and to the credit of other Government officers, $1,101,417.70. Foreign depositaries, maintained during all or part of the past fiscal year, were located in Belgium, England, France, Italy, Haiti, and Shanghai, China. Three foreign depositaries were discontinued during the year—two in Belgium and one in Italy—while during the same period two additional foreign depositaries were designated at Shanghai, China. The designation of the depositaries at Shanghai, China, was necessitated by the closing of the United States Postal Agency at that place on December 31, 1922, in order that holders of warsavings certificates of the 1918 series, maturing January 1, 1923, as Well as subsequent series, purchased through that postal agency, might have facilities for cashing such certificates. On June 30, 1923, there was on deposit with foreign depositaries $150,539.16 to. the credit of the Treasurer of the United States and $666,591.79 to the credit of other Government officers. Since June 1, 1913, Government depositaries have been required to pay interest at the rate of 2 per cent per annum on daily balances. The amounts received from this source, exclusive of special depositaries, which are sho^vn above, for the past 11 years, are as follows: TABLE N O . 2.—Interest on Government deposits, exclusive of those in special depositaries^ 1913 1914 1915 1916 1917 1918 $122,218. 89 1,409, 426.07 1,222, 706.93 791,671.45 703, 771.76 1,134, 569.09 : 1 Amended figures. 1919 1920 1921 1922 1923 ' $5, 507, 742.43 1, 865, 975.7& 2,580,746.84 1865,848.30 2 583^ 939. 89' »Incomplete and subject to revision. SECURITIES OWNED BY THE UNITED STATES GOVERNMENT. The statement of securities owned by the United States Government on June 30, 1923, compiled from latest reports received by the Treasury, shows an aggregate of $10,839,774,452.46, as-against $11,057,052,849.92 on June 30 a year ago, a net decrease of $217,278,397.46. A detailed list of the securities is shown in Exhibit 40 on page 251 of this report. A comparison of the respective holdings by general classes is shown as follows: SECRBTAKY OF THE TEBASURY. June 30,1923. Foreign obligations ; Capital stock of war-emergency corporations Railroad obligations Capital stock of Panama Railroad Federalland-bank securities:. Capital stock of Federal land.banks Federal farm-loan bonds ; Capital stock, Federal intermediate credit banks Miscellaneous securities received by the War and Navy Departments and the TJ. S. Shipping Board Total ' 67 June 30, 1922. SIO, 090,900,222.96 138,768,824.98 419,383,158.97 7,000,000. 00 SIO, 045,393,404. 64 327,492,835.92 456,505,129. 93 7,000,000.00 3,086,070.00 101,885,000.00 12,000,000. 00 4,264,880.; 00 138,635,000.00- 66,751,175. 55 77,761,599.43 10,839,774,452. 46 11,057,052,849.92 The foreign obligations shown in the statement do not include interest accrued and unpaid. The Treasury received on July 5, 1923, funded obligations of the Government of Great Britain aggregating $4,600,000,000 face amount, in lieu of the demand obligations, and accrued interest, of that government shown on the statement for June 30, 1923, pursuant to the debt settlement approved by the act of February 28, 1923. The capital stock of the United States Grain Corporation, in the amount of $25,000,000, exhibited in the securities statement for June 30, 1922, was written off in the fiscal year 1923, upon delivery to the Treasury of $56,858,802.49 face amount of foreign obligations by the corporation on account of final liquidation, which were acquired on account of relief given pursuant to the act approved March 30, 1920. Under the provisions of section 205 of the agricultural credits act approved March 4, 1923, subscriptions aggregating $60,000,000 were made by the Secretary of the Treasury for capital stock of the Federal intermediate credit banks. During the fiscal year, payments were made on such subscriptions aggregating $12,000,000 pursuant to calls for payments of $1,000,000 in the case of each Federal intermediate credit bank. RAILROADS. During the past year the Treasury has continued to make payments to railroads under the transportation act of 1920. These pajmients, which are in addition to disbursements made to carriers by the Director General of Railroads, 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 terminatioa of Federal control on March 1, 1920. Section 210: For new loans. 68 . REPORT ON T H E FINANCES. 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 16, 1922, to November 15, 1923, $3,138,360.18 was paid under this section, $2,553,042.55 to the carriers directly and $585,317.63 to the Director General of Railroads, making a total of $8,277,910.63 paid under this section up to November 15, 1923, $6,719,997.06 to the carriers directly and $1,557,913.57 to the Director General of Railroads. The Interstate Commerce Commission estimates the total amount payable under this section at $15,000,000, leaving an estimated balance to be paid of $6,722,089.37, all of which it expects to certify for payment during the remainder of the present fiscal year. A statement showing partial and final payments to carriers under this section of the act, together with the deductions therefrom for the period from November 16, 1922, to November 15, 1923, is attached as Exhibit 37, page 243. Section 209. From November 16, 1922, to November 15, 1923, $51,479,527.27 was paid to carriers under this section, making the total amount jpaid under this section up to November 15, 1923, $501,570,330.86, which includes final payments to 297 carriers out of 676 accepting the guaranty. The Interstate Commerce Commission estimates the total amount payable under this section at $536,000,000, leaving an estimated balance to be paid of $34,429,669.14, all of which it expects to certify for payment during the remainder of the present fiscal year. Carriers have paid into the Treasury on account of excess earnings during the guaranty period, pursuant to the provisions of paragraph (d) of this section, up to November 15, 1923, $223,789.60, all between November 16, 1922, and November 15, 1923. The Interstate Commerce Commission estimates the t o t a l amount which will be payable to the United States from carriers under paragraph (d) of this section at $2,500,000, leaving an estimated balance to be paid to the United States of $2,276,210.40, all of which it expects to certify as payable during the remainder of the present fiscal year. A statement showing partial and final payments to carriers and amounts received from carriers under this section from November 16, 1922, to November 15, 1923, is attached as Exhibit 38, page 245 SECRETARY OF THE TREASURY. 69 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 railroads and for paying judgments, decrees, and awards rendered against the Director General of Railroads. Loans made by the Treasury to railroads under this section from November 16, 1922, to November 15, 1923, aggregated $21,914,000, making the total loans under this section up to November 15, 1923, to 84 railroads, $339,800,667. Advances made by the Treasury to the Director General of Railroads for the purposes specified from November 16, 1922, to November 15, 1923, aggregated $8,000,000, making the total of such advances up to November 15, 1923, $25,999,997.97 ' Repayments from November 16, 1922, to November 15, 1923, amounted to $49,178,046.94, of which $36,663,886.93 represented payments- on account of principal in advance of maturity, making the total repayments up to November 15, 1923, $147,862,592.41 Payments received on account of interest from November 16, 1922, to November 15, 1923, amounted to $11,675,955.28, making the total of such payments up to November 15, 1923, $34,300,636.28. The balance to the credit of the revolving fund at the close of business on November 15, 1923, was $116,362,563,72. From November 16, 1922, to November 15, 1923, 9 railroads paid their loans in full and 19 reduced their loans. Seven have defaulted in interest pa^T-ments and one in payments due on account of principal. The following is a list of the carriers in default as of November 15, 1923: Atlanta, Birmingham & Atlantic Railway Co.: Balance of interest due Feb. 1, 1922 Interest due Aug. 1, 1922 Principal due Aug. 13, 1922 , Interest due Aug. 13, 1922 Interest due Feb. 1, 1923 Interest due Aug. 1, 1923 Principal due Aug. 33, 1923 Interest due Aug. 13, 1923 $4, 404. 59 5,400.00 20, 000. 00 39.13 5, 360. 87 5,400. 00 20,000. 00 39.13 Total Gainesville ik Northwestern Railroad Co., interest due July 15, 1923.-Kansas City, Mexico & Orient Railroad Co. (receiver): Balance of interest due June 1, 1922 <$42,095. 83 . Interest due Dec. 1, 1922 75,000.00 Interest due June 1,1923 75,000.00 $60, 643. 72 2, 250. 00 Total Minneapolis & St. Louis Railroad Co., interest due Oct. 1, 1923 Missouri & North Arkansas Railway Co., balance of interest due Oct. 1, 1923 192,095 83 4], 460. 00 95,000.00 70 REPORT ON T H E Waterloo, Cedar Falls Interest due Apr. Interest due Oct. Interest due Apr. Interest due Oct. FINANCES. & Northern Railway Co.: 15, 1922 15, 1922 15, 1923 15, 1 9 2 3 . . . : . . ' Total. Wichita Northwestern Railway Co.: Interest due Dec. 1, 1921 Interest due J u n e 1, 1922 Interest due Dec. 1, 1922 Interest due J u n e 1, 1923 Total $37,800.00 37,800.00 37,800.00 37,800.00 $151, 200.00 $9, 700. 20 11,452.50 11,452. 50 11, 452. 50 , 44, 057. 70 Grand total 586, 707. 25 A statement showing the amount of loans outstanding on November 15, 1922, loans made between November 16, 1922, and November 15, 1923, and loans outstanding on November 15, 1923 is attached as Exhibit 39, page 249. CHECKING ACCOUNTS OF GOVERNMENT CORPORATIONS AND AGENCIES. The United States Shipping Board Emergency Fleet Corporation, the United States Housing Corporation, the War Finance Corporation, the several Federal land banks, the Railroad Admuiistration, 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 following table shows the amount of checks on these accounts, including similar accounts formerly maintained by the United States Grain Corporation and the Russian Bureau of the War Trade Board, paid by the Treasurer from the dates of the establishment of the account to October 31, 1923, and the balances on deposit with the Treasurer on the latter date: Checks paid by the Treasurer of the United States. Period. Balances with the Treasurer of the United States Oct. 31,1923. $7,211,264,650.82 152,759,512.51 3,408,714,905.49 933,967,229.41 Feb. 28,1918-0ct. 31,1923 July 27,1918-0 ct. 31,1923 June 2,1918-Oct. 31,1923 Oct. 31,1918-Feb. 2,1922 §36,334,074.23 1,095,183.07 443,662,284.72 13,333,773.99 17,237,642.21 1,834,295,774.06 No V. 30,1918-Sept. 28,1920 Juiie 2,1920-Oct. 31,1923 Apr. 13,1918-Oct. 31,1923 328.00 59,071,836.34 2,482,476.33 Apr. 7,1922-0 ct. 31,1923 12,797,160.19 2,032,524.40 Dec. 20,1921-0 ct. 31,1923 Emergency Fleet Corporation United States Housing Corporation... War Finance Corporation United States Grain Corporation Russian Bureau of the War Trade Board.Federal land banks Railroad Administration... United States Sugar Equalization Board (Inc) United States Spruce Production Corporation 13,576,088,489.22 I Closed Feb. 2,1922. 0) 2,981,500.75 555,942,367.30 > Closed Sept. 28,1920, 71 SECRETARY OE THE TREASURY. The plans worked out by the Treasury for handling these accounts have operated to the entire siitisfaction 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 Government, thus reducing the amount of Government borrowings with consequent savings in interest charges. GOLD. Gold imports have continued relatively heavy during the past year, although they have been materially less than during the previous year. On the other hand, there has been an increase in the amount exported. Net imports for the fiscal year 1923 were $205,905,416 less than for 1922, as appears from the following table, which gives the imports and exports of gold for the fiscal years 1921, 1922, and 1923, and from July 1, 1923, to October 31, 1923: O old i m p o r t s Gold e x p o r t s Net imports Fiscal year 1921. Fiscal year 1922. Fiscal y e a r 1923. S638,559,805 133,537,902 $468,318,273 27,345,282 $284,089,550 49,021,975 $118,447,521 4,893,544 505,021,903 440,972,991 235,067,575 113,553,977 J u l y 1 to Oct. 31,1923. The reduction in imports during 1923, as compared with 1922, resulted chiefly from decreased imports from France and Sweden, amounting to $107,000,000 and $54,000,000, respectively, making $161,000,000 of the total decline of $184,000,000. t h e r e were substantial increases in imports from Great Britain, Canada, and the Netherlands, however. The following table shows the principal sources of imports during the fiscal years 1922 and 1923: Country. Great Britain Oanada Germany France " Netherlands AustraUa a n d New Zealand Sweden ,. Denmark India (British) All others Total Fiscal y e a r 1922. Fiscal y e a r 1923. $124,654,4.63 19,509,099 19,924,893 129,650,473 4,186,976 13,011,302 55,294,298 18,924,110 14,863,765 $141, 722,541 34, 254,897 26, 918,284 22, 391,027 15, 957,122 1 713,278 i ; 329,788 1 115,469 38,687,144 468,318,273 Change. +$17 088,078 +14', 745,798 + 6 , 993,391 - 1 0 7 , 259,446 770,146 298,024 - 5 3 , 964,510 808,641 -17, - 1 4 , 863,765 - 2 9 , 611,750 in; -184,228,723 Of the $49,021,975 gold exported during the fiscal year 1923, $22,192,021 went to Canada, $13,431,518 to India, $5,032,034 to Mexico, and $8,366,402 to all other countries. In connection with the decline in net imports of gold it may be of interest to note that there was a decline in net exports of mer•chandise between the two fiscal years amounting to nearly a billion dollars. During the fiscal year 1923, on the other hand, foreign countries paid this Government about $233,000,000 on account of n REPORT ODSr T H E FINANCES. their obligations, whereas in previous years there had been an excess of United States Government international expenditures. I t has been estimated that the net debit balance of international payments of the United States during the calendar year 1922 was $585,000,000, compared with a net debit balance of $181,000,000 during the previous year. This excess of credits, established here by foreign countries, is doubtless being used in part to liquidate their short-time indebtedness incurred during the years when international payments were unfavorable to them. A part of this balance may also be accounted for in the transfer of funds to this country by citizens of foreign countries in order to escape burdensome taxation, further losses through inflation of the currencies, and other uncertainties of the general European situation. Gold production in the United States for the calendar year 1922 is estimated at $48,849,100, compared with $50,067,300 in 1921. There has probably been little change in the rate of production during the first half of 1923. In addition to the gold mined during 1922, about $12,009,303, which had been used in the arts, was reclaimed, making an aggregate from both sources of $60,858,403. This was very little more than the amount used in the arts during 1922. The following table shows the monetary stock of gold in the United States on the first of July each year from 1913 to 1921, inclusive, and on the first of each month from July 1, 1922, to November 1, 1923, and the gold holdings of the Federal reserve banks on or about the same dates: Date. Stock of monetary Per cent gold i n United of a m o u n t States (in in_1913. millions of dollars). T o t a l gold holdings of F e d e r a l reserve b a n k s (in m i l h o n s of dollars). R a t i o of. gold held by Federal reserve banks to total. P e r cent. July 1913... July 1914... July 1915... July 1916... July 1917... July 1918... July 1919... July 1920... July 1921... July 1922... AuR. 1922. Sept. 1922., Oct. 1922.. Nov. 1922. Dec. 1922. Jan. 1923.. Feb. 1923 . Mar. 1923 . Apr. 1923 . May 1923.., June 1923 . July 1923.. Aug. 1923.. Sept. 1923.. Oct. 1923.. Nov. 1923., 1,871 1,891 1,986 2,450 3,019 3,076 ,3,113 2,709 3,298 3,785 3,825 3,859 •3,874 3,902 3,909 3,933 3,938 3,961 3.969 a, 982 4,023 4,049 4,079 4,109 4,135 4,168 100 101 106 131 161 164 166 145 176 202 204 206 207 209 209 210 210 212 212 213 215 216 218 220 221 223 1324 1543 s 1,242 2 1,933 2,129 « 1,860 2,462 3,021 3,071 3,063 3,089 3,078 3,073 3,049 3,076 3,073 3,069 3,081 3,109 3,088 3,110 3,121 3,116 3,111 16.31 . 22.16 41.14 62.84 68.39 68.66 74.66 79.82 80.29 79.37 79.74 78.88 78.61 77.52 78.11 77.58 77.32 77.37 77.28 76.27 76.24 75.96 7.5.36 74.04 1 Includes some lawful money. • Excluding gold held abroad, which is not included in the monetary .stock in the United States. 73 SECRETARY OE THE TREASURY. I t will be noted that the monetary stock of gold increased only $264,000,000 during the last fiscal year as against $487,000,000 during the previous fiscal year. However, on June 1, 1923, for the first time in the history of the country, the monetary stock of gold passed the $4,000,000,000 mark. At the present time the country has 2.23 times as much gold as on July 1, 1913, and its aggregate holdings equal almost 50 per cent of the entire visible monetary stock of gold in the world. The gold holdings of the Federal reserve banks comprise about 75 per cent of this country's monetary stock. Up to August, 1922, this proportion had increased steadily, but since that date it has decreased about 5 points while the amount of gold in circulation has increased. The effect of the policy of the Federal reserve banks and the Treasury of paying out gold certificates in ordinary course with other forms of money is evident in the following table showing the amount of gold coin and gold certificates in circulation outside of the Treasury and Federal reserve banks on July 1, 1922, and subsequent dates: . Month. J u l y 1, 1922. Oct. 1, 1922. J a n . 1,1923. A p r . 1, 1923. J u l y 1,1923. Oct. 1,1923. N o v . 1,1923 Gold coin. Gold., certificates. $417,126,192 412,894,448 429,192,179 410,102,015 403,929,535 397,980,664 396,737,411 $173,342,219 214,956,729 302,743,899 319,068,349 386,456,089 465,279,009 500,861,439 Total. $590,468,411 627,851,177 731,936,0718 729,170,364 790,385,624 803,259,673 897,598,850 I n recent months most of the gold certificates placed in circulation have been obtained froin the Treasury in exchange for gold formerly held to the credit of the Federal reserve banks, and it has been necessary to continue the coinage of gold in order to meet the legal requirement that at least one-third of the gold held against gold certificates must be in the form of gold coin. The gold coin held in the Treasury above this legal requirement against gold certificates outstanding amounted to about $31,000,000 on November 1, 1923, compared with $75,000,000 on July 1, 1922. SILVER. The Director of the Mint stopped receiving tenders of silver under the act of April 23, J.918, sometimes known as the Pittman Act, on the l'5th of June, 1923. The prime purpose of the act was to aid in the conduct of the World War by releasing silver for use in relieving the currency crisis in British-India. I t authorized the Secretary of the Treasury to retire from time to time silver certificates and, as such certificates were retired, to melt or break up and sell as bullion the silver dollars 74 REPORT ON THE FINANCES. represented by such certificates up to the limit of 350,000,000 standard silver dollars. I n accordance with its provisions 200,032,325.64 fine ounces of silver bullion, obtained from 259,121,554 dollar coins, were sold to Great Britain at $1 per ounce for export to British-India. These operations were fully consummated by the end of the fiscal year 1919, or in approximately 14 months from the date of passage of the act. Practically all of these doUars were melted by the mint service prior to export. In addition to the coin sold for export there was allocated to the Director of the Mint, for use in manufacturing subsidiary coin, 11,111,168 silver dollars, which produced 8,589,730.13 fine ounces of silver bullion. The retirement of silver certificates, however, continued until about the middle of 1920 and the net reduction in the amount of such certificates outstanding from the date of the passage of the Pittman Act to June 30, 1920, was approximately $330,000,000. The act also provided for the issue of Federal reserve bank notes, in order that the currency in circulation might not be curtailed as the result of cancellation of silver certificates. The maximum amount of Federal reserve bank notes in actual circulation under this provision of the act was about $236,000,000 at the end of 1920. These notes were fully covered at all times by deposit with the Treasurer of obligations of the United States, as° provided for by the act. After sales to Great Britain ceased in May, 1919, the market price of silver remained above $1 per ounce for about a year. I n fact for a time the price rose rapidly, passing the melting point of the silver dollar, and at one time was even above the melting point of subsidiary silver, which is $1.38 per ounce. The price pendulum soon began to swing back, however, with the reversal of the oriental trade balance, the debasement of silver coins in England and Mexico, the exporting of additional United States silver dollars, and the melting of subsidiary silver coins in European and other countries to be sold on the market as bullion. In May, 1920, after the price had fallen below $1 per ounce the Treasury began purchases of domestic silver under the provisions of the Pittman Act. As a result, the United States markets have had two prices for silver during the life of the purchase provisions of the act, between May, 1920, and June, 1923, one for silver eligible for sale to the United States under the terms of the act, and the other fluctuating with the world market price for other silver. During the greater part of the period the market price for foreign silver fluctuated between 65 and 70 cents per ounce, and during the whole period it averaged about 70 cents per ounce, or about 30 cents per ounce less than the Government was obliged to pay for domestic silver under the act. On May 4, 1923, supplemental regulations were issued with reference to the termination of purchases of silver under the act. These SECRETARY OF THE TREASURY. 75 supplemental regulations are included in this report as Exhibit 76, p. 396. On May 16, 1923, announcement was made by the Director of the Mint that the quantity of silver remaining purchasable under the act had been reduced to approximately 10,000,000 ounces and that thereafter daily tenders of domestic silver would be received for quantities arriving at bullion-producing plants. During this period the tenders of silver were very large, producers evidently using all available means to increase their output. Further announcement was accordingly made on May 29, 1923, in the following terms: The Director of the Mint announces that tenders of silver under the act approved April 23, 1918, sometimes known as the Pittman Act, have to-day amounted to over 1,000,000 ounces, thus reducing the total amount remaining to be purchased under the act to about 1,350,000 ounces. In order to avoid any possibility of accepting excessive tenders and at the same time assure the most equitable treatment to American producers of silver, the Director of the Mint will not accept any further tenders until a sufficient examination has been made of the tenders already received to .indicate the precise" amount of silver remaining to be purchased. The Director of the Mint will, however, continue to receive tenders under the act until the close of business June 15, 1923, filing such tenders in the order of their receipt, and as soon as the amount remaining, to be purchased has been definitely determined will accept tenders up to such amount in the order of their receipt in accordance with the regulations heretofore prescribed. All tenders in excess of the amount remaining to be purchased will be rejected. Fiaal acceptance was made on June 16 of the silver represented by tenders received at the office of the Director of the Mint to the close of busuiess June 2, 1923, and as final adjustments are made there may be further acceptances in small amounts until the provisions of the act have been fulfilled. In addition to the $11,111,168 in silver coia mentioned as having been allocated to the Director of the Mint for conversion to subsidiary coin, allocation was made of 6,000,000 ounces of bullion purchased under the act for the manufacture of subsidiary coins. Of the bullion so allocated 4,341,753.61 ounces were never even transferred to the subsidiary silver account, and when it became apparent that the bullion would not be needed the allocation up to this amount was revoked by the Secretary of the Treasury. The allocation of the remainder of this 6,000,000 ounces, namely, 1,658,246.39 ounces, together with the 8,589,730.13 ounces obtained as the result of melting the 11,111,168 dollar coins allocated for subsidiary coinage, was revoked by subsequent order, under authority of the Comptroller GeneraFs decision, dated November 29, 1922, a copy of which appears as Exhibit 75, page 393 of this report. This revocation was premised on the fact that at all times subsequent to the allocations a quantity of silver in excess of the quantities allocated was constantly on hand in the subsidiary silver bullion accounts, the allocations having been made because at the time the silver on hand in such accounts was either not at the particular institutions where needed 62166—FI 1923 7 76 EEPORT ON T B : E FINANCES. or was not in condition for coinage. The revocations had the effect of a saving to taxpayers of the United States of over $5,000,000, representing in part the difference between Pittman Act price and market price, about 30 cents per ounce, on over 14,500,000 ounces of silver, and in part a saving of interest on investment in silver bullion which would otherwise have had to lie dormant in the subsidiary silver coinage bullion accounts. The position of the Treasury Department with respect to these revocations and the administration of silver purchases under the act is set forth in the letters of the Undersecretary of the Treasury to the Vice Chairman of the Senate Commission of Gold and Silver Inquiry, dated May 9, 1923, May 31, 1923, and August 25, 1923, which are attached as Exhibits 77, 78, and 79, pages 397 to 409. ^ The amount of silver tendered and accepted under the terms of the act is shown by fiscal years as follows: Ounces. 1920 1921 1922 1923 6,500, 593 54, 225,104 56, 636, 809 83, 222, 529 : : Total -...' 200, 585, 035 Of the total of 200,585,035 ounces representing accepted tenders, 196,158,175 ounces had been delivered up to October 31, 1923. The amount of silver tendered and accepted each month during the fiscal year 1923 was as follows: 1922— July ...; August September October. November December Ounces. 2,841,000 8,325, 000 4, 377,445 7,105, 625 3, 242, 836 7,496, 500 1923— ; January February March April May June Ounces. 4, 622,000 6, 768, 762 16,215,394 4,570,536 16,160,698 1,496,753 Total 83,222,529 Recoinage of silver dollars began in February, 1921. The quantities coined by fiscal years follow: Fiscal year 1921. . .." Fiscal year 1922 Fiscal year 1923 July to October, 1923, inclusive: Total • $19, 043, 000 92, 388, 473 110, 715, 000 5,841,000 227, 987, 473 I t is'anticipated that by the close of the calendar year 1923 practically all the silver purchased under the Pittman Act will have b,oen delivered to the mints and that practically all of the delivered silver will have been recoined into standard silver dollars. SECRETARY OF THE TREASURY. 77 An incident of the recoinage of these dollars was the adoption of a new design for the silver dollar. The dollar of this design was issued in commemoration of the signing of the peace treaties in November, 1921, between the United States, Gerrnany, and Austria, and is called the peace dollar. With the recoinage of the silver dollars. Federal reserve bank notes have been retired and silver certificates reissued, thus reversing the action taken at the tune the dollars were melted. THE MINTS. During the fiscal year under review the mints were principally engaged in the manufacture of double eagles and standard silver dollars. The total coinage amounted to $172,196,760 of which $60,190,000 were in double eagles and $110,715,000 in standard silver dollars and the balance in subsidiary and minor coins. The mints and assay offices purchased during the year gold bullion valued at $336,600,217 and 70,112,962 fine ounces of silver bullion.. Total revenues, including charges on bullion, the value of surplus bullion recovered, by-products, and the profits on silver and minor coinage^ amounted to $26,176,791.12. The annual settlement of the accounts of the operative officers of the various mints, which is made at the close of each fiscal year, was entirely satisfactory, all values called for by the books having been fully accounted for. The tests made by the Annual.Assay Commission appointed each year by the President showed that all coins manufactured during the year were within the legal requirements as to weight and fineness. In addition to the domestic coinage the mints made 3,900,000 pieces of coin for foreign Governments. HOSPITALIZATION. All projects in the program of the Board of Consultants on Hospitalization, appointed to provide additional hospital facilities for veterans of the World War out of the funds of Public Act 384 of March 4, 1921, have been completed and are now operating units, with the exception of the one at Chelsea, N. Y., which is well under way. On February 28, 1923, less than two years after the signing of the bill, the consultants submitted their final report, covering the entire activities of the board. This report is most complete, and unfolds the history of such hospitalization from its earliest days to the present time. I t is prefaced with some recommendations for future hospitali* zation which will be of assistance to those who may have to do with such work later. Some of the more important chapters treated are ''Early methods of providing hospitalization," ^'Organization chart of consultants,'* 78 REPORT ON T H E FINANCES. ^*Related problems," ''Standard plans," ''Problems of race," ''Domiciliary care," "State cooperation," "Approval of procedure," "Unavoidable delays," "Overhospitalization and new appropriations," and "Complete program in detail." Many valuable explanatory tables, maps, and charts follow • the report, together with sketches of institutions as originally proposed and photographs showing completed buildings. The following table .shows the location of the institutions, number of beds provided, type, and cost of each project. It wUl be noted that out of the $18,600,000 provided by the act, over 6,000 beds were obtained. ° Project. Beds. Jefferson Barracks, Mo.. Tuskegee, Ala Bronx, New York City. Rutland, Mass Augusta, Ga Fort Bayard, N. Mex... Lake City, Fla Oteen,]Sr. C Palo Alto, Calif : Perryville, Md •. Whipple Barracks, Ariz Fort McKenzie, Wyo Fort Logan H. Roots. Ark Fort Walla Walla, Wash Dayton, Ohio Milwaukee, Wis Marion, Ind Chelsea, N . Y Alexander, La Equipment Aspinwall, Pa Hot Spring, S. Dak., project discontinued > Leavenworth, Kans., project discontinued Chicago, 111. (Marine Hospital), to complete Pubhc Health Service project .Total and average. Total cost. 289 $1,255,000.00 596 2,000,000.00 1,011 3,485,000.00 815,000.00 220 870,783.00 265 992,500.00 250 271,000.00 100 463,000.00 200 515 1,288,619.65 300 480,000.00 422 577,000.00 245 177,000.00 270 250,000.00 165 450,000.00 306 839,947.60 700 1,303,313.10 80 161,369.60 400 12,117,074.93 59,516.17 600,000.00 125,325.00 977.02 16,601.76 Cost per bed. $4,342 3,355 3,447 3,704 3,286 3,968 2,710 2,315 2,502 1,600 1,367 722 922 2,760 2,745 1,861 2,017 »5,000 972.17 6,334 18,600,000.00 3 2,936 1 Approximate. 9 This amount would be slightly increased, taking into consideration a small amount of equipment which the consultants did not have to supply, but the average cost per bed would still be under $3,000. A table showing the entire program of the consultants in detail is attached as Exhibit 67, page 357. PUBLIC HEALTH. The medical officers stationed abroad to assist in enforcing the United States quarantine regulations have rendered material aid in preventing the introduction of disease, and have greatly facilitated our commercial relations by obviating the necessity for detaining vessels in quarantine at ports of arrival. The method of fumigating vessels has been improved and the dangers of this procedure lessened. The amendment to the quarantine regulations, authorizing the Surgeon General to extend the fumigation intervals in the case of vessels which have not touched at a plague-infected port for six months, has proven beneficial. By arrangement with the Ministry of Health of Great Britain, medical officers of certain ports of that country now fumigate vessels in accordance with the quarantine laws SECRETARY OF THE TREASURY. 7t and regulations of the United States, and their certfficates, properly visaed by the American consul, are accepted by quarantine officers m the United States. Quarantine and immigration activities at certain ports are being consolidated, Medical inspection for quarantinable diseases at European ports prior to embarkation has been extended to include the ports of Queenstown, Ireland, and Bordeaux, France. Both human and rodent plague appear to have been eradicated from New Orleans, Louisiana, and Galveston, Tex. Antiplague work was, therefore, discontinued after 43 months of continuous operation at New Orleans and 31 months at Galveston. So far as known, the existence of plague in the United States is now limited to certain California counties where the infection is present in ground squirrels, and an occasional human case of this infection occurs. I t should be borne in mind, however, that it is difficult to determine when plague in rodents has been absolutely eradicated and that reappearance of this disease after the lapse of a comparatively extended period of time does not necessarily mean a new importatioE^ Rodent surveys in the New England and Middle Atlantic seaportis have failed to reveal evidence of plague infection. The occurrence of cases of yellow fever in Mexico in the fall of 1922 required that measures be taken to prevent an outbreak of this disease in the United States. With this in view, assistance i® mosquito-control work has been given to the towns and communities along the Texas-Mexican border. Work to, prevent the spread of trachoma has been conducted through trachoma hospitals or field clinics in Arkansas, Georgia^ Illinois, Kentucky, Missouri, North Dakota, Ohio, Tennessee, and West Virginia. State and local health authorities have given f u l cooperation, including financial support, wherever the work has been carried on. Valuable assistance has also been received from the Red Cross. The reinspection of a region in Kentucky which in 1912 was one of the worst infected trachoma areas in the United States shows t h a t in 1923 the disease has been practically eradicated there by the methods followed by the service. An arrangement has been made with the Canadian health authorities whereby Canadian owned vessels operated between Canadian and American ports will be subject to the same requirements as American vessels in regard to the provision for pure drinking water and safe drinking water systems on board. During the previous fiscal year, of the 3,500 sources of water supply used by common carriers in interstate traffic, 51 per cent of those used by railroads and 26 per cent of those used by vessels were under the supervisioE of the Public Health Service. During the present fiscal year the supervision has been increased until it now includes 54 per cent of railroad water supplies and 27 per cent of vessel water supplies. 80 REPORT ON THE FINANCES. Studies and demonstrations in rural sanitation have been conducted in 54 counties in 16 States during the year. The plan of work carried on in cooperation with State and local health authorities makes possible a much more effective health organization and has resulted in materially decreasing the death rates in places where this work has been performed. Tw^o useful methods have been developed for the control of rural malaria—the Paris green method for controlling mosquito-breeding in ponds, and the creosote method for repelling mosquitoes in defective dwellings. A new dust-collecting apparatus superior to existing ones has been designed which will forward the accuracy and specfficity of extensive dust studies now planned. I t has been shown that both tularaemia and Malta fever may prove to be much more widespread in the United States than has been suspected, and health officials have been warned. Studies of drug addicts have Been made and have given a clearer understanding of this evil. The study of stream pollution and purification is being continued and significant contributions have been made to the subject of carbon monoxide and illuminating-gas poisoning. Effective treatment of neuro-syphilis and prevention of insanity due to it by the use of arsenic have been demonstrated and practical application is being made by outside clinicians. In the work of combating venereal disease it was found advisable to publish a periodical, ''Venereal Disease Information.'' This bulletin, issued by the Government Printing Office, contains abstracts of articles on the venereal diseases found in current medical and public health literature, and is available to the public by subscription. The motion picture, ''Science of Life,'' for use in sex education has been shown to approximately 50,000 people, principally high-school and college students. Although reports of morbidity are far from complete or satisfactoiy, improvement over former years is noticeable in the reports received, both from the United States and from foreign countries. These reports, especially those from State and city health officers, are carefully watched for unusual conditions or outbreaks of communicable diseases, and notice is given to other health authorities when necessary. The Public Health Reports have been issued each week and have proved to be of increasing value to health officers, sanitarians, and others, because of better morbidity statistics and continued improvement in the character of the articles printed. Proofs of publications issued are being sent regularly to the Office International d'Hygiene Publique and the health section of the League of Nations, and their reports contain much data taken from the weekly Public Health Reports, for which credit is given. SECRETARY OF THE TREASURY. 81 Public health radio broadcasts have been sent out semiweekly, and large audiences have been reached through the broadcasting stations. In addition, many of these broadcasts have been reproduced, in whole or in part, in the public press of the United States and in other countries, including newspapers published in 17 different , foreign languages. Through a system of news releases and specially prepared articles widespread publicity has been obtained for educational health matter. Relief work for merchant seamen and other beneficiaries continues to increase. This work has trebled since 1915 and doubled since 1918, thus more than keeping pace with the growth of the American merchant marine. The facilities of all marine hospitals and outpatients offices continue to be availably to the personnel of the United States Coast Guard. Medical officers were detailed for duty aboard all Coast Guard vessels oh cruise, and 93 part-time contract surgeons were employed to furnish medical relief at the Coast Guard stations remote from regularly established relief stations. The total number of physical examinations made by the Public Health Service during the year was 77,438, including merchant seamen, applicants for various Government departments, including the Employees' Compensation Commission, applicants for licenses as ships'' officers, and members of Citizens' Training Camps. The Executive order of June 18, 1923, also authorizes and directs the Surgeon General to make such physical examinations of applicants and employees as may be requested by the Civil Service Commission. This is expected to result in a considerable increase in the volume of this work. Trained nurses on duty at marine hospitals and relief stations number 326, and the dietitians, aides, etc., make the total number of professional women thus engaged approximately 400. During the year the Public H e a l t h Service has cooperated. to a greater extent than ever before with other departments and bureaus of the Government in the solutions of their problems, including sanitary inspection of Government establishments in accordance with an Executive order, and the study of the causes of absenteeism among Government employees. These studies have resulted in great economies in several establishments, including the Bureau of Engraving and Printing and the Veterans' Bureau. The service has continued to furnish medical officers to the Bureau of Mines to advise and assist in mine sanitation, and one of its officers is now studying problems abroad for that bureau. Sanitary engineers and medical officers have advised the National Park Service as to the improvement of sanitary conditions in the areas under its control, and the detail of medical officers to decide medical questions arising in the Employees' Compensation Commission has been continued. Medical officers have bepn detailed at the request of the United States 5Z REPORT ON T H E FINANCES. Coal Commission to study the sanitary aspect of its problems. At the request of the Post Office Department extensive operations have been carried on by the service in the physical examination of its employees; and the medical care, inspection, and examination of in.coming aliens in connection with the work of the Immigration Service has been continued as provided by law. The present status of the Reserve Corps of the Public Health Service on active duty is not well defined. The majority of these officers are detailed to the Veterans' Bureau, but urgent necessity has required that some continue on active duty in public-health work. The increase in the regular corps of commissioned medical officers has not kept pace with the additional duties imposed upon the service. On account of the advantages and needs of enlargement of this mobile corps, the number of regular commissioned officers should be substantially increased. Such an increase would not enlarge the total personnel or call for additional appropriations, since such commissioned officers would take the places now filled by temporary officers of higher salaries who must now necessarily be employed to carry on the work. PUBLIC BUILDINGS. Because of abnormal conditions resulting from the World War and continued excessive construction costs it has been necessary to postpone the erection of a large nurnber of Federal buildings authorized in the omnibus public building act of March 4, 1913. In the meantime no additional public buildings have been authorized to be constructed, and as a result many years will be required to provide buildings in communities where they are greatly needed. Prudence would suggest the necessity for a carefully considered public-building program, and it is believed that the following recommendation made by one of my predecessors. Secretary Cortelyou, in a report addressed under date of December 7, 1908, to the Speaker of the House, should receive serious consideration: Further change, it is believed, could be made to great advantage. The present system employed in connection with bills for public buildings is not conducive to the best results. A great mass of bills is annually poured iia on the department with requests for early reports. In many instances the buildings authorized are unnecessary for the public business, and in the interests of economy the construction could b e postponed for several years. Insufficient time is allowed for investigation as to the requirements of the buildings proposed, or in fact for an accurate estimate of cost. As a result it frequently happens that a number of buildings are authorized which are not required, and, on the other hand, no appropriations are made for localities in which the Government is urgently in need of adequate buildings,.and is in all probability pa^dng large rent for insufficient quarters. Public building appropriations should be p u t on a basis similar to that now employed in connection with appropriations for river and harbor work. If this were done, t h e Congress would submit to this department a. list of localities with the request that at t h e next session a report be submitted showing— SECRETARY OF THE TREASURY. 85 1. The necessity or advisability of a building in the city or town suggested. This would necessarily embrace the size of the city, the cost of the building, and the price at which rented quarters are to be had. 2. If a public building is recommended, the area and probable cost of the site; the size, cost, and character of the building that should be erected; the branches of the Government service that would occupy it when completed; and the annual cost of its maintenance. 3. The amount of appropriation necessary to carry on the work during the ensuing fiscal year. With such a report, carefully made in detail after consultation with the other departments interested, the Congress would be better able to judge of the advisability of authorizing a building and of the appropriation required. I am confident that by this method a great saving could be effected and that buildings could be more satisfactorily^ and economically distributed. The last decade has witnessed a substantial gain in the population of the United States and a remarkable increase in the volume of public business. Prior to 1913 Congress had made provision from time to time for public buildings to meet the growing needs- of the public service. Since 1913 there has been no legislation to provide increased space in overcrowded public buildings, or for additional public buildings in communities where the needs of the service and sound business principles called for housing the governmental activities in Government-owned buildings. A serious condition of congestion exists in the Federal buildings in the more important cities throughout the United States, and the Government is paying for space to accommodate the public business approximately $20,000,000 annually. This figure is mounting steadily. While there is great need for public buildings in many cities not already provided with such buildings, there is greater need for the extension and enlargement of many of the public buildings hitherto constructed, and it is believed that preferential consideration should be given to this phase of the public-building situation. On December 30, 1922, and February 8, 1923, the Postmaster General joined with the Secretary of the Treasury in submitting to Congress recommendations for the enactment of legislation authorizing the enlargement of certain specified buildings to provide necessary additional space for the proper and' convenient transaction of the public business. The buildings listed did not include all in which overcrowding exists, but was limited to those where the congestion was most serious and the need of relief most ^urgent. The communications referred to were printed as House Documents Nos. 523 and 561, Sixty-seventh Congress, fourth session, arid attention is respectfully invited, in connection with the foregoing, to the statements therein set forth. (See Exhibits 68 and 69, pages 359 to 374.) A matter of equally pressing urgency is the need for certain additional buildings for governmental purposes in the city of Washington. 84 KEPORT ON T H E FINANCES. Of the 10 executive departments, the War and Navy Departments are occupying temporary buildings belonging to the Government, the Departments of Justice, Commerce, and Labor are in rented •quarters, while the Treasury Department and the Department of Agriculture are only partially accommodated in their respective departmental buildings and are occupying outside quarters, rented and otherwise, in excess of the space provided in said departmental buildings. In addition to the lack of proper and suitable space to house the executive departments of the Government, there is a deplorable lack of suitable fireproof space for storage purposes, and no provision has so.far been made for a national archives building. While provision for all the foregoing should be made as soon as conditions permit, there is an immediate and pressing need for buildings in Washington to house certain activities. The Internal Revenue Service occupies approximately 630,000 square 'feet of space in nine buildings, widely separated, 419,000 square feet of this space being in temporary buildings erected for use during the war. Some of them have already served beyond the period of contemplated duration. The cost of the upkeep is already becoming burdensome and it will be a costly proposition to keep them in habitable condition for any length of time. They are unsafe depositories for the valuable records which are stored in them. Commenting on this feature, the Commissioner of Internal Revenue says: '^The fire hazard is too great to warrant the further use of these buildings, where the safe keeping of valuable papers is involved. Thousands of income-tax returns and other invaluable documents are kept in these buildings while the returns are in process of audit. Among these papers are documents covering hundreds of millions of dollars in increased assessments, many of which could not be replaced -should they be destroyed." Aside from the unsuitability of .these temporary buildings for the use to which they are being put, the resulting inconvenience of transacting the business of the bureau in widely separated structures is seriously hampering the operating ^efficiency of the bureau. I t is estimated that if the activities of the bureau were housed in a single building, the cost per hundred dollars for collecting the tax could be reduced 15 or 20 per cent, resulting in .an annual saving of approximately $1,000,000. The General Accounting Office occupies approximately 382,000 square feet in 20 buildings, widely separated. As in the case of the Internal Revenue Bureau, the housing of the units of this important office in buildings widely separated seriously affects the efficient performance of its duties. Touching on this feature, that office has stated that '^many of the savings and betterments contemplated by the legislation of June 10, 1921, creating the ^General Accounting Office, are lost and will not be obtained until t h e personnel and the ffies are brought together and housed under one SECRETARY OF THE TREASURY. 85 roof. The legislation referred to contemplated a centralization of the work in order that it might be performed under the closer supervision of the Comptroller General and his assistants, thus making possible the elimination of much lost motion, a reduction of overhead expense, and, it is believed, in time a reduced personnel. In a word, centrahzation of the activities of the office would mean betterment of organization, better and more efficient methods of work, more economical administration, a more satisfactory output of work, and a better disciplined and more contented personnel." What has been said respecting the fire hazard attending the files of the Internal Revenue Bureau applies also to the files of the General Accounting Office. Many of its records, which are invaluable as evidence of payment by the Government, are stored in nonfireproof space, and their loss or destruction would be a calamity. The construction of separate buildings for the Internal Revenue Bureau and the General Accounting Office, or of one building large enough to accommodate both activities, would not only make it possible to safeguard their valuable records but would release valuable and much-needed space in the Treasury, Treasury Annex No. 1, Winder Building, Auditors' Building (old Bureau of Engraving and Printing), so-called Land Office Building, etc., but would result in increased efficiency and reduced administrative costs of considerable magnitude, as well as a saving of a considerable amount in rentals. The need has been recognized for many years for a building in which to house the archives of the Government, Records of great interest from a historical standpoint, as well as records of inestimable value from a business standpoint, are now stored in insecure, and in many instances inaccessible, quarters, or occupy space in departmental buildings which if an archives building were constructed could be utilized, and is urgently needed for clerical work amounting to approximately 450,000 square feet. Heads of departments have repeatedly urged upon Congress the need for a national archives building, and the subject has from time to time been discussed upon the floors of both Houses of Congress, and while this need has been generally conceded, the only measures so far enacted into law have been an authorization for the acquisition of a site for a '^Hall of records," upon which Congress subsequently authorized the con0 struction of a departmental building, and the authorization of the preparation of tentative plans for a modern national archives building, which plans were duly prepared. I t is hoped that legislation will be promptly enacted which will permit of the construction of a suitable building in which the archives of the Government may be protected from the hazard of fire and the ravages of time. 86 REPORT 0]Sr THE FINANCES. Attention is invited to the great need for the reconstruction of the security vaults in the Treasurer's office. The department is again presenting an estimate for an appropriation for such reconstruction. The facilities afforded the Treasurer of the United States in the matter of safeguarding moneys and securities which he is required to hold for several accounts were inadequate even before the war. The greatly increased responsibilities and business thrown upon the department through financial operations occasioned by the war and since continuing have made it necessary to adopt many expedients and makeshifts in order to care for increased stocks of money and securities held. The situation is further aggravated through the discontinuance of the subtreasuries, for the facilities provided by the subtreasuries did give some relief to the Treasurer. At the time consideration was being given the proposition to discontinue these offices the attention of Congress was called to the fact that increased and improved facilities at the department in Washington were necessary if the facilities at the subtreasuries were abandoned. On July 1, 1914, stocks of reserve and other moneys and securitiesheld by the Treasurer of the United States for various accountsapproximated $3,299,198,235.92f, distributed as follows: In In In In Treasurer's office, Washington subtreasuries mints and assay offices national-bank depositaries $1,491, 748, 571. 70§534, 798, 885. 54 1,199, 467, 499. 68 73,183, 279. 00 On July 1, 1923, the Treasurer was accountable for $18,573,544,844.07§ aggregate amount held as follows: In In In In In Treasurer's office, Washington mints and assay offices.: special depositaries Federal reserve banks national-bank depositaries ' |13, 968, 590, 256. 76J4, 232, 252, 685. 24 299, 868,804.18 41, 992, 937. 55 30, 840,160.34 The completion of the New York Assay Office afforded important relief in the matter of storage of coin and bullion. The capacity of this office, however, is limited, and, as a matter of fact, a part, at least, of the holdings in New York should be transferred elsewhere. As regards the equipment in Washington, full information regarding the situation has heretofore been made available to the committees in Congress concerned with consideration of estimates heretofore presented. The vaults in use iu the Treasury Building are obsolete, inadequate, and wholly unsuited for present conditions. Moreover, in order to conduct the business in Washington it has been necessary to utilize strong rooms withiu the Treasury Building which are not vaults at all and vaults outside the Treasury Building, where centralized control is lost. It is of great public importance that moneys^ and securities which the Treasurer of the United States and other SECRETARY OF THE TREASURY. 87 officers of the department are required to hold shall be properly safeguarded, and it is of further importance that better facilities for handling transactions in such moneys and securities be provided for the proper conduct of the work. An abstract of the report of the Supervising Architect's Office accompanies this report on pages 442 to 447, and shows in detail the work of that office in connection with the construction of public buildings proper, and hospitals for the Public Health Service and the Veterans' Bureau, including additional facilities for hospitalization at plants already established. THE COAST GUARD. The operations of the Coast Guard in its comprehensive and varied field of action have been attended by most satisfactory results during the year. The value of vessels (including their cargoes) assisted by the cutters and stations of the service during the year amounted to $51,436,095, exceeding in this line of endeavor the figures of the preceding fiscal year by $16,089,330. The number of persons on board vessels assisted was 16,253. The* number of vessels boarded and examined by the various units of the service in the interest of the enforcement of United States laws was 31,653, exceeding the past year's number by a little more than 10,000. The number of lives saved or persons rescued from peril was 2,792, only 162 less than during the fiscal year 1922, when the theretofore unparalleled record of 2,954 was credited to the service. In addition to assisting vessels in distress and saving life and property from the perils of the sea, the Coast Guard has continued to carry on its other activities, including the destruction or removal of wrecks, derelicts, and other floating dangers to navigation; extension of medical aid to American vessels engaged in deep-sea fisheries; protection of the customs revenue; enforcement of law and regulations governing anchorage of vessels in navigable waters; enforcement of navigation and other laws governing merchant vessels and motor boats; enforcement of law to provide for safety of life on navigable waters during regattas and marine parades; protection of game and the seal and other fisheries in Alaska, etc.; international ice patrol in the vicinity of the Grand Banks off Newfoundland; examination of applicants as to their qualifications for lifeboat men, etc. The Coast Guard also assisted the customs authorities in enforciug the United States laws relating to illegal importations into the country. The Secretary of the Treasury awarded 23 life-saving medals of honor durmg the year, under the provisions of law, in recognition of bravery exhibited iu the rescue, or attempted rescue, of persons in danger of drowning. 88 REPORT ON T H E FINANCES. I t is pleasing to note that the legislation enacted by the Congress at its latest session providing for promotion in the commissioned grades of the Coast Guard has happily removed a long-standing harmful and discouraging situation and has established the commissioned personnel upon a stable, enduring, and progressive basis, comparable with the other military services of the Government. The Coast Guard, also, by reason of this legislation, is now able to offer opportunities for advancement to young men of proper mettle and qualifications who desire to enter the service and make it their life's business. With a view to lessening the smuggling of liquor into this country it is recommended that the appropriation for the Coast Guard be increased by $28,500,000 for the next fiscal year. This will enable the department to purchase 20 additional seagoing Coast Guard cutters, to purchase or construct 203 motor boats of the cabin cruiser type, and 91 small motor boats to be used at Coast Guard stations, and to increase the personnel of officers and enlisted men of the Coast Guard by 3,535. ^ The seagoing Coast Guard cutters will serve as bases for the large fleet of motor boats intended to be used in patrolling inlets and the entrances to harbors, and will watch ^^rum vessels" lying off the coasts and follow them as occasion requires. I t is hoped that with such equipment the smuggling of liquor may be reduced to a minimum. BUREAU OF ENGRAVING AND PRINTING. During the fiscal year 1923 the bureau delivered 411,546,429 sheets of engraved securities and "other Government paper of all kinds, a decrease of 5,273,684 sheets compared with the previous fiscal year. The face value of perfect sheets delivered amounts to $14,451,191,142.99, a decrease of $463,924,729.09 compared with the fiscal year 1922. The number of employees was reduced from 5,680 on July 1, 1922, to 4,972 on June 30, 1923, exclusive of those on indefinite furlough, showing a net reduction of 708 for the year. NEW CURRENCY DESIGNS. Plans for the revision of paper currency designs, referred to in the previous annual report, have been completed. This revision was undertaken primarily as a protective measure. The multiplicity of designs in use was most confusing and made it almost impossible for one, other than an expert, to be familiar with all the different designs of notes and certificates in circulation; and the confusion added greatly to the difficulty in detecting counterfeits. Six kinds of paper currency were in use, and there was a different design for the face and back of each authorized denomination of each kind. Moreover, the denominational markings of certain issues were of such character as to facilitate note raisinsr. SEGEETAKY OF THE TREASURY. 89* The matter received the most exhaustive study, and consideration was given to every suggestion for improvement. The committee particularly charged with the work finally reached certain conclusions which were approved by the Secretary as principles of design:. (1) There should be no change from the size and general characteristics of paper currency now in use; (2) there should be characteristic backs for each denomination, irrespective of kind; (3) thereshould be characteristic faces for each denomination, irrespective of kind, with variations in detail to indicate kind; (4) all symbolic and pictorial embellishments should be eliminated except for face portraits indicative of denomination; and (5) the arrangement of different features of design, and particularly of the denominational! markings, should be such as to minimize the possibility of note raising. On this basis designs were proposed and approved. The new issues, it is believed, mil give the utmost protection against counterfeiting and note raising. At the same time important economies in production will follow as a result of the unification of design. One of the most important of these conclusions was concerning the* size of the notes and certificates. The proposition to reduce thesize from approximately 7^ by 3J inches to approximately 6 by 2$ inches has been before the department for many years. Two reasons for the change have been advanced, (1) economy in production and handling and (2) public convenience. The department is not aware* of any public demand for the change, and it is doubtful if public convenience would be served. As regards economy in productione and handling, there is no doubt the costs in these respects would be materially reduced. As a practical matter, however, it would be necessary to rebuild the entire mechanical equipment of the Bureau« of Engraving and Printing now used for the production of paper cur^ rency, or else install new mechanical equipment; the cost in either case would be enormous. At the same time it would be necessary to continue the production of notes and certificates of existing designs until equipment could be made available to produce issues of the new designs, and consequently the difficulties of making t h e change with present facilities or with facilities which could be made available within a reasonable time, even if the necessary appropriation were available, would be almost insuperable. Aside from the practicability of the matter, however, it was felt that the size and . general characteristics of the paper currency issues |of the United' States have been so firmly established and have given such universalsatisfaction that no change should be made that might require the elimination of essential characteristics. The work at the Bureau of Engraving and Printing is progressing, and the new notes and certificates will be issued from tim^e to time in^ regular course as the necessary preliminary work in each case is com- 90 REPORT ON T H E FINANCES. pleted. New plates when ready will be substituted for the old. Notes of the one dollar denomination wiU first appear in circulation. Other denominations will follow, and all the new designs rshould appear in circulation before the close of the year 1924. For further details reference is made to the statement issued on September 10, 1923, which appears as Exhibit 70, page 375 of this report. DISTRICT OF COLUMBIA TEACHERS' RETIREMENT FUND. During the fiscal year 1923, credits amounting to $232,264.81 were placed to the account of the District of Columbia teachers' retirement fund established under the provisions of the act of January 15, 1920, ;as amended. Purchases for account of the fund were made during ithe year aggregating $191,400 face amount 4^ per cent bonds, of which $181,400 face amount were Liberty bonds and $10,000 face ^amount were Treasury bonds. Purchases for account of the fund are imade upon advices given by the Commissioners of the District of Columbia from time to time of the amounts available for investment, the ladministration of the fund being vested in the commissioners. The >total face amount of United States Government bonds now held by i h e Treasurer in the investment account of this fund is $655,150, all of ^which bear interest at the rate of 4^ per cent per annum, payable semi:.annually. The unexpended balance on June 30, 1923, was $40,144.26, which includes $20,035.74 held by the Treasurer on that date to cover p a y m e n t for investment subsequently made. UNITED STATES GOVERNMENT LIFE INSURANCE FUND. Pursuant to the provisions of section 18 of the act approved Decemt)er 24, 1919, all moneys received in payment of premiums on converted insurance, over and above reserve requirements and author^ ized payments, are invested by the Secretary of the Treasury in interest-bearing obligations of the United States. These investments are made when and as advices of amounts available are received from the Director of the United States Veterans' Bureau. All investments made bear interest at the rate of 4 i per cent per annum. Duriug the fiscal year 1923, purchases for the fimd amounted to $26,611,400 face amount, which, together with $60,077,650 face amount held in the investment account at the beginning of the fiscal year, makes an aggregate of $86,689,050 face amount held on June 30, 1923. The securities so purchased are held in trust by the Secretary of the Treasury for account of the fund. Verification of the security holdings is made by the director from time to time through detailed SECRETARY OF T H E TREASURY. 91 reports of investments rendered by the Treasury, The following statement shows the holdings of the fund h j loans, as of June 30,1923: Par value. $6, 639, 900 18,089, 300 42, 661, 550 19, 298, 300 First Liberty loan converted 4i per cent bonds Second Liberty loan converted 4J per cent bonds Fourth Liberty loan 4i per cent bonds 4i per cent Treasury bonds Total.. 86, 689, 050 CIVIL SERVICE RETIREMENT AND DISABILITY FUND. The administration of the civil service retirement and disability fund, established by the act of May 22, 1920, is vested in the Secretary of the Interior, but section 8 of the act requires the Secretary of the Treasury to withhold from all specific appropriations for salaries or compensation of employees to whom the act is applicable an amount equal to two and one-half per cent of the basic pay or compensation, and to credit such amounts in the '^ Civil service retirement and disability fund'' which is appropriated for the payment of annuities, refunds and allowances provided in the act. The Secretary of the Treasury is also directed to make investments from time to time of such portion of the fund as may not be required to meet authorized pa3nnents, and to credit the fund with the income. Pursuant to the latter provision, investments for account of the fund in interestbearing obligations of the Government were made during the fiscal year 1923, amounting to $17,050,000 face amount. Part of the investments, however, were made in short-term obligations, the proceeds of which were required for authorized payments during the fiscal year, so that the net purchases for account of the fund during the year were $8,050,000 face amount. The interest and profits on investments credited to the fund during the fiscal year amounted to $981,888.87.. The total interest and profits collected and earned on investments made to June 30, 1923, was $1,631,288.01. The following statement shows the holdings of the fund by loans on June 30, 1923: Second Liberty Loan Converted 4^ per cent bonds Fourth Liberty loan 4^ per cent bonds 4 | per cent Treasury notes, series A-1926 4i per cent Treasury notes, series B-1926 Total Par valao. $8,120, 000 9, 864, 250 2,050, 000 6,000, 000 .26, 034, 250 Further reference to the fund will be found on page 474 of this report. 62166—FI 1923 8 92 REPORT ON T B E FINANCES. S O L D I E R S ' AND SAILORS' CIVIL RELIEF BONDS. In the annual report for 1922 reference was made to final settlements with life insurance companies and associations which continued insurance for members of military and naval establishments of the United States under guarantee of the Government. These settlements have been completed by the United States Veterans' Bureau, certified to the department, and all bonds of the United States issued in favor of the insurers guaranteeing payment of premium have been retired. The first of these bonds were issued on March 22, 1919, and the last were retired on June 28, 1923; 106 separate accounts were opened; and total issues aggregated $195,500. The transactions are now closed. SURETY BONDS. On June 30, 1923, there were 33 surety companies holding certificates of authority issued by the Secretary of the Treasury to qualify as sole sureties on obligations permitted or required by the laws of the United States, as provided by the act of Congress of August 13, 1894, as amended. Three domestic companies and four companies incorporated under the laws of foreign countries are also authorized to do only a reinsurance business. During the current fiscal year five additional companies have been authorized as sole sureties and one as a reinsurer. Three applications for certificate of authority are now pending before the department. The constant increase in the requirement of indemnity and surety bonds by the Government, as imposed by law in its dealings with private concerns and its own bonded employees, and the increasing number of surety companies, authorized to execute such bonds in favor of the United States, have greatly added to the work devolving upon the Treasury under the law of August 13,1894, as amended. The additional work is now performed by means of details from other bureaus, the statutory provisions for clerical assistance proving insufficient each year. The act of March 23, 1910, vested jurisdiction over surety companies in the Secretary of the Treasury, at which time there were 25 such companies executing bonds in favor of the United States. There are now 40 such companies, and the certificates of 35 companies have been revoked by reason of insolvency or for qther causes. The following are suggested as very important and urgent changes, much desired with respect to the method of handling the bonding work of the Federal Government: (1) Standard form of bond.—A uniform standard bond form for guaranteeing positions of trust should be prescribed and used by all departments and establishments of the Government, and a like form for guaranteeing the performance of contracts. At the present time each executive department and independent establishment prescribes SECRETARY OF T H E TREASURY. 9S its own individual form of bond and contract, and in most cases without reference to the forms used by other branches of the Government. Such standard form, it is believed, would tend to promote the establishment of uniform rates of premium charges.' (2) Centralized control of data.—Every bond or other obligation running in favor of the United States should clear through a contrail office for purposes of record and approval. The various departments and independent establishments hold large numbers of surety bonds, but it would be difficult, almost impossible, to determine at any desired time the extent of the liability of any one company on obligations executed by it in favor of the Government. Such a contrail record would be of great value, particularly in cases where a surety company becomes insolvent and it becomes necessary to substitute sureties on outstanding obligations. The record would also greatly assist in the filing of proofs of claims on the part of the Government for' satisfaction out of the assets of such companies. TREASURY ORGANIZATION. The only change in organization of major importance during the past year was the reassignment on July 1, 1923, of Treasury activities to the supervision of the Undersecretary and the Assistant Secretaries as provided in Department Circular No. 244 of June 21, 1923. (Exhibit 65, p. 354.) Fiscal operations are assigned to the Undersecretary and the Assistant Secretary in Charge of Fiscal Offices, the Fiscal Assistant Secretary acting under the intermediate supervision of the Undersecretary. The Undersecretary is also charged with the supervision of the finances, and is authorized to act, for and by direction of the Secretary, in any branch of the department, and represents the Secretary in dealings with the Federal Reserve Board, the War Finance Corporation, and the Farm Loan Board. Minor changes in organization and administrative procedure have been effected in many branches of the Treasury and are constantly under study for improving the service and insuring an efficient and economical conduct of the department's business. The organization of the Treasury is shown in the diagram on page 94. BUDGET AND IMPROVEMENT COMMITTEE. The budget and improvement committee, appointed on July 8, 1922, to assist the budget officer of the Treasury Department in the preparation and examination of Treasury estimates of appropriations and to study existing procedure within the department with a view to the introduction of improved methods of work and a more effective departmental organization, has considered a l estimates of appropriations submitted by heads of bureaus ox ^ >f^ OBGANIZATION OE T H E TEEASnUY D E P A R T M E N T . vSECRZTARy OF THE TRJEA5URY ] UNDER.^ECR£TAR.y o H AJJIJTANT JtCXfeTAKy mCHAlUiE. o r THE o •AJJISTAia, JEC8£TAR.V AIIVAXCJ../.UJA!;..' TORiJUtflADu' a SECRETARY OF T H E TREASUBY. 9& offices and made appropriate recommendations to the budget officer for their revision. I t has also conducted investigations and submitted recommendations as to the portions of appropriations already made for the department which may be.placed in reserve, not to be expended except in case of unforeseen necessity and then only upon the approval of the Secretary. Moreover, the committee has conducted investigations and submitted recommendations on a number of subjects relating to departmental organization and methods which have been referred to it from time to time. In the last annual report it was stated that reserves amounting to $1,148,287.30 had been set up for the year 1923. Subsequently additional reserves amounting to $865,200 were added and reserves amounting to $519,808.67 were released, leaving a balance in reserve for the fiscal year of $1,493,678.63. For the fiscal year 1924 heads of bureaus and offices reported reserves of $302,823.50. After investigation the budget and improvement committee recommended that additional reserves amounting to $232,000 be added^ and later further reserves of $11,144 were reported, making a total reserve for the year of $545,967.50, on October 31, 1923. From time to time during the year supplemental and deficiency estimates for the year 1923 and prior years were submitted, aggregating $123,662,848.20, of which $121,105,000 was for refund of internal-revenue taxes. After examination by the committee these estimates were revised and reduced to $123,646,023.20. The preliminary estimates of the department for the fiscal year 1925, other than for interest on the public debt and public debt retirements from ordinary receipts, aggregated $177,129,515.12c The Bureau of the Budget made a tentative allocation to the Treasury Department of $159,294,364.84 for such expenditures. The regular estimates submitted by heads of bureaus and offices for the same purposes amounted to $175,334,599.64. These estimates were carefully examined by the committee with the purpose of eliminating all items not considered absolutely necessary and to determine what further reductions could be made with the least detriment to the service so as to bring the total within the amount of the tentative allocation. After considering the committee's recommendations, the estimates were revised and submitted to the Bureau of the Budgetin amount $159,235,800.91, or $16,098,798.73 less than the estimates submitted by heads of bureaus and offices and $58,563.93 less thaa the amount of the tentative allocation made by the Bureau of the Budget. Items amounting to $5,167,800, which had been deducted from the regular estimates, were submitted to the Bureau of the Budget as supplemental items which were considered absolutely necessary properly to care for the needs of the department. 96 REPORT ON T H E FINANCES. BUREAU OF SUPPLY. A centralized bureau of supply in the Treasury Department was authorized by Circular No. 283, dated March 28, 1922, supplemented by a circular dated June 16,1922. This circular was further amended under date of January 9, 1923. (See Exhibit 61, p. 351.) The Director of the Bureau of Supply was also given general supervision over the General Supply Committee, a function previously exercised by the Chief Clerk. The Bureau of Supply is intended to bring about the consolidation of all activities incident to the purchasing, warehousing, and distributing of supplies, and the accounting connected therewith, for all bureaus and divisions of the Treasury, with the exception of the Bureau of Engraving and Printing, which, on account of statutory restriction, can not be included. The personnel of the bureau, now numbering 93, consists of employees detailed from the various bureaus and offices of the Treasury who were formerly employed in carrying on the work of purchase and supply now handled by the Bureau of Supply. Substantial savings have already been effected in the way of lower prices, discounts, and standardization of commodities. The work of purchasing supplies has been divided into several sections, each specializing in certain groups of commodities. The shipment of supplies on requisition to the offices of the Treasury in Washington and in the field has been centralized to a considerable extent in warehouses well suited to the purpose on the ground floor of Building F, in Washington. Further concentration of this work will be carried on as more space is made available. Another important economy has resulted from the issue, on February 16, 1923, of Department Circular No. 319 (see Exhibit 62, p. 352), which directed the adoption throughout the department in Washington of individual records of issues of stationery supplies. These records are maintained on cards, each of which contains a ledger account with an individual employee, and the effect of their adoption has been to decrease materially the consumption of articles of stationery. SECRETARY OF THE TREASURY. Expenditures Supply for the various bureaus the purchase of 97 totaling $4,104,064.50 were made by the Bureau of fiscal year 19,23 from allotments made to it by the and offices from their appropriations to be used for supplies. Details are as follows: Chief Clerk and Superintendent General Supply Committee Division of Printing and Stationery Supervising Architect Bureau of Internal Revenue. Treasurer of the United States Commissioner of the Public Debt Division of Bookkeeping and Warrants Bureau of the Public Health Service Total $170, 938. 62 118, 506. 98 379, 971. 90 768, 419. 45 528, 231. 80 3, 942. 44 63,124. 79 1, 493. 50 2, 069, 435. 02 4,104,064.50 In addition, equipment for Veterans' Bureau hospitals amounting to $165,942.19 was purchased, and the appropriation accounting for it was handled by the Supervising Architect's Office. The bureau also purchases the supplies and equipment for the Bureau of the Budget, Federal Farm Loan Board, and Comptroller of the Currency, and makes miscellaneous purchases payable from sundry building appropriations under the direction of the Supervising Architect, but does, not do the accounting incident to these purchases. The number of purchase orders prepared by the bureau during the year approximated 29,000, while nearly 40,000 vouchers for purchases and services other than personal received their administrative audit in the buresiu and were passed directly to the disbursing clerk for payment or to the General Accounting Office for settlement. During the year 398 tons of stationery supplies were shipped by freight and express from the storeroom of the bureau to'the 2,100 or more field offices of the department. These shipments involved the use of 1,646 Government bills of lading, as well as the transporting of 4,098 packages and boxes. On February 28, 1923, a traffic department was created under the supervision of the Director of Supply, and a traffic manager designated. (See Exhibit 63, p. 352.) I t is the duty of this department to route all shipments by freight, express, or parcel post; to inform the Bureau of Supply as to approximate freight charges on proposed shipments, in connection with the awarding of contracts; to expedite and supervise shipments on Government bills of lading; and to handle clairas for damages sustained in transit. I t is expected that a considerable saving can be accomplished through the expert services of the traffic department and a number of improvements in procedure have already been effected. 98 REPORT ON T H E FINANCES. General Swpi^ly Committee. The General Supply Committee was created by the act of June 17, 1910, as a contracting agency for supplies in common use by two or more departments of the Government. The committee was charged by the Executive order of December 3, 1918, with the responsibility for the disposition of surplus war supplies in the District of Columbia, and by the Executive order of August 27, 1919, with the duty of acting as a central clearing house for information regarding surplus war material held outside of the District of Columbia. The value of the purchases reported by the various departments from contractors listed in the General Schedule of Supplies increased $132,036.35 during the fiscal year 1923, compared with the previous fiscal year. Gross purchases, however, including transfers from surplus, show a decline of $228,684.23, due to the reduction in the value of articles reissued from surplus. There has been a gradual and consistent decline in gross purchases each year siiice 1919, when they reached their peak at $10,321,438.18. The total for 1923 was $6,548,338.66, which is still about 100 per cent in excess of the gross purchases for the years immediately prior to the war period. Higher prices, greater demands, and an increasing tendency of Government departments to avail themselves of General Supply Committee contracts all contributed to this increase. The committee has continued its efforts to obtain the lowest prices for all supplies. Short or long term contracts have been made as the situation seemed to warrant. Some progress has also been made, in spite of the cumbersome procedure necessary under existing law, in the purchase of commodities in definite quantities based on the estimated needs of departments and establishments. I t has been demonstrated that economies could be made by this method of purchase, and obviously contractors will make better terms on a specific quantity for a definite date of delivery than on a contract for the delivery of supplies in large or small quantities as called for over a period of several months. I t seems very clear that the establishment of a central purchasing agency for the Government in Washington which could purchase in definite quantities, store, and distribute to the departments those supplies which are commonly used would bring aboiit a very considerable saving over the present method. The General Supply Committee has been particularly active in the disposition of unserviceable property and waste material accumulated in the course of business which is turned over to the committee. Widely advertised auction sales have been held, and during the past year brought into the Treasury $114,492.74. 99 SECRETARY OF THE TREASURY. PERSONNEL. On June 30, 1922, there were in the Treasury Department in Washiugton 19,571 employees and on September 30, 1923, there were 17,959 employees; or a net decrease of 1,612 during that periodMost of this decrease has occurred in the office of the Chief Clerk,, the Division of Loans and Currency, the Bureau of Internal Revenue, and the Bureau of Engraving and Printing. In the last-named bureau a reduction of 1,014 employees was effected during this period by the introduction of improved machinery. On June 30, 1922, there were in the field services of the Treasury 40,715 employees and on June 30, 1923, there were in the same services of the Treasury 41,685 employees, or an increase of 970. Most of this increase occurred in the Customs Service, was due to the^ administration of the new tariff law, and has been fully justified by the large increase in the revenues produced. A statement showing by bureaus, divisions, and offices the number of employees in the departmental service of the Treasury at the close of each month from June, 1922 to September, 1923, is included in this report as Exhibit 66, page 356. The following table showa in summary form the number of employees in both departmental service and field service on June 30, 1923, compared with June 30,. 1922: Employees of the Treasury Department. June 30, 1922. Departmental. Division of Customs Secret Service DiAdsion United States Coast Guard Federal Farm Loan Bureau Mint Bureau Internal Revenue Bureau Public Health Bureau Supervising Architect's OflSce... All other Total Field. Juno 30, 1923. Total. Departmental. Field. Total. Increase (-J-> or decreaseC—)^ 51 11 81 69 13 7,191 225 243 11,687 6,762 118 4,242 29 700 14,016 9,110 5,738 6,813 129 4,323 98 713 21,207 9,335 5,981 11,687 46 12 80 75 14 7,260 280 224 10,261 7,410 n7 4,244 34 738 14,026 9,389 5,727 7,456 129 4,324 109 752 21,286 9,669 5,951 10,261 +1 +11 +39 +79 +334 -30 — 1,42ft 19,571 40,715 60,286 18,252 41,685 59,937 —349 -f643. PERSONNEL CLASSIFICATION. The classification act of 1923 provides for the classification of civilian employees m the District of Columbia and the field services. The heads of departments are charged with the duty of allocating all positions in their respective departments to their proper grades in the compensation schedules and of fixuig the rate of compensation of each employee according to section 6 of this act. To insure uniformity of action within the Treasury Department, the Treasury Department Personnel Classification Board was estab 100 REPORT ON T H E FINANCES. lished by Treasury Department Circular No. 324, a copy of which will be found as Exhibit 64, page 353. This board gave personal attention to the allocation of each employee in the department. To this end, the board held continuous full-day sessions for three and one-half months. Representatives from the various bureaus, offices, and divisions were called in to testify whenever a difference of opinion existed, and the different offices of the department were visited whenever information further than that which appeared on the questionnaire was deemed necessary. The following tabulation shows the extent of the board's work: Professional and scientific sendee Subprofessional sendee Clerical, administrative, and fiscal ser\dce Clerical-mechanical service Custodial ser^dce Total - 418 87 11, 854 3,128 1, 960 - 17, 447 After the employees of the department had been allocated to their proper grades by the board, the schedules were forwarded to the Personnel Classffication Board for final review and grading. The Treasury Department Personnel Classification Board is now engaged in correlating the schedules according to these final allocated grades. RETIREMENT OF CIVIL-SERVICE EMPLOYEES. A large number of superannuated employees have been retired on annuities during the past year. The extension of the provisions of t h e retirement law by amendment and Executive order to cover unclassified employees has enabled certain branches of the Treasury to Tetire on annuities a large number of employees who had become superannuated and were no longer able to render efficient service. The act of September 22,1922, extending the provisions of the retirement act to cover certain persons who have been separated from the service on account of reduction in force, has enabled the Treasury to retire with annuities 18 employees of this class. I desire to call attention again to suggestions made in the annual reports of the Secretary of the Treasury for 1921 and 1922: (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 are not sufficient in themselves to support with any degree of comfort those who are retired, and I believe that somewhat more liberal provisions would be justffied. 101 SECRETARY OF THE TREASURY. The folio Vising table shows the number of persons retired from the various services of the Treasury Department from the time the retirement act went into effect to September 30, 1923: DEPARTMENTAL SERVICE. Retired on account Retired on accoimt of disability— of a g e Retained. Office. Secretary's Appointment Division Mint Bureau Customs Division Printing and Stationery Trensurer's. . . . Bookkeeping and Warrants Public Health .. Comptroller of Currency Loans and Currency Supervising Arcbi tect Public Debt. Secret Service Mail and Files Register's Engraving and Printing Internal Revenue Chief Clerk Coast Guard Auditor's Offices Public Moneys War Risk ' 1 1 10 3 2 5 7 7 1 6 2 3 5 13 26 92 Total Retired Total under From Prom act Sept. number retired. July 1, July 1, To June 1922, to To June 1922, to 22, 1922. 30,1922. Sept.30, 30,1922. Sept.30, 1923. 1923. 2 40 4 3 1 14 11 5 5 2 4 1 1 1 4 46 11 7 2 1 145 25 11 5 86 3 14 368 1 1 1 3 1 1 1 1 ie 7 1 2 2 2 2 2 8 4 1 2 2 18 5 2 1 "' 6 11 1 1 86 97 41 66 5 3 23 15 13 3 3 2 7 259 49 24 5 97 4 15 7 599 FIELD SERVICE. Customs Coast Guard Public Health Mint and Assay Internal Revenue Custodian Subtreasury .. Total 232 2 10 37 22 105 247 4 4 87 178 68 24 62 2 3 25 24 59 34 10 2 2 10 7 2 3 3 15 1 2 8 353 6 9 118 217 149 34 408 612 175 57 31 11 886 PRACTICE BEFORE THE TREASURY DEPARTMENT. Treasury Department Circular No. 230, governing the recognition of attorneys and agents to practice before the department, originally issued February 15, 1921, was revised and reissued August 15, 1923 (Exhibit 60, page 337), making a number of changes which experience had shown to be necessary. The revised circular embodies amendments to the original circular providing for the enlargement and reorganization of the committee on enrollment and disbarment and outlining suspension and disbarment proceedings. I t also contains the regulations prescribed in the order of March 21, 1923, and Department Circular No. 326 of July 17, 1923, relative to contingent fees. 102 REPORT ON THE FINANCES. The department has learned of many cases in which attorneys or agents have; solicited business from taxpayers on a contingent basis and have induced taxpayers, who were otherwise satisfied, to file claims having little or no merit. In man}^ instances, the contract of employment provides for contingent fees in an unreasonable and unconscionable amount. For this reason, the Treasury prescribed the regulations above referred to and required all enrolled attorneys and agents to file affidavits before August 15, 1923, disclosing the cases handled on a contingent basis and the amount of fees charged. While intending to discourage contingent fees and to require their disclosure, the Treasury does not bar contingent fees in practice before the department; nor is the information submitted in connection with such cases used to prejudice a fair consideration of any case, provided the attorney or agent is guilty of no unfair practice or violation of the Treasury's requirements. The provision that no attorney or agent will be recognized by the department after August 15, 1923, unless he has filed an affidavit relative to contingent fees, has resulted in the reenrollment of those actively engaged in practice before the department. On October 31, 1923, 6,763 attorneys and agents who had complied with the amended regulations had received new enrollment cards, and this number is steadily being increased. The committee on enrollment and disbarment has met twice each week, or oftener when necessary, for the purpose of passing on applications for enrollment and considering complaints against persons already enrolled. During the fiscal year under review 2,679 applications for enrollment as attorneys and agents were approved and 36 applications were rejected. Forty-seven applicants for enrollment appeared before the committee for hearings on their applications. Disbarment proceedings were instituted against 23 enrolled attorneys and agents; in 5 oases the answer was accepted as sufficient and the complaint dismissed, 1 was disbarred, and 5 were suspended from practice for various periods, leaving 12 cases unsettled on June 30, 1923. In two of those cases the attorney or agent had been suspended from practice pending the outcome of the disbarment proceedings. DEPARTMENT CIRCULARS. During the year a number of new department circulars have been issued with reference to Treasury operations and a number of old circulars have been revised. These circulars have been included as exhibits to this report and the majority of them have been mentioned elsewhere in the text of the report. Those which have not been previously referred to are Exhibits 52 to 59, inclusive, pages 314 to 337. 103 •SECRETARY OF TFIE TREASURY. PANAMA CANAL. The general fund of the Treasury was charged during the fiscal year 1923 with $4,570,692.57 on account of the Panama Canal, including $3,620,503.37 for maintenance and construction work and $950,189.20 for fortifications and miscellaneous expenditures. The general fund was credited during the year with $17,869,985.25 on account of receipts from tolls, etc., making an excess of receipts for the year of $13,299,292.68. The total amount expended for canal construction, fortifications, maintenance, and operation, together w t h the amount of interest paid on Panama Canal loans up to the close of the fiscal year 1923, is shown in the following table: Construction, maintenance, a n d operation. Year. 1903 1904 1905.... 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918. 1919 1920 1921 1922 1923 Total... . .. $9,985.00 50,164,500.00 3,918,819.83 19,379,373.71 27,198,618.71 38,093,929.04 31,419,442.41 33,911,673.37 37,038,994.71 34,285,276.50 39,917,866.71 31,452,359.61 24,427,107.29 14,638,194.78 15,949,262.47 13,299,762.56 10,704,409.74 6,031,463.72 16,230,390:79 2,791,035.40 3,620,503.37 454,482,969.72 Total. Fortifications. Interest paid on P a n a m a Canal l o a n s . Receipts covered into the Treasury. $30,608.75 1,036,091.08 1,823,491.32 3,376,900.85 4,767,605.38 2,868,341.97 3,313,532.55 7,487,862.36 1,561,364.74 3,433,592.82 2,088,007.66 896,327.45 950,189.20 $9,985.00 50,164,500.00 3,918,819.83 19,379,373.71 27,198,618.71 38,093,929.04 31,419,442.41 33,911,673.37 37,069,603.46 35,321,367.58 41,741,358.03 34,829,260.46 29,194,712.67 17,506,536.75 19,262,795.02 20,787,624.92 12,265,774.48 9,465,056.54 18,318,398.45 3,687,362.85 4,570,692.57 1,319,076.58 1,692,166.40 1,691,107.20 3,000,669.60 3,201,055.81 3,194,105.95 3,199,385.05 3,189,024.79 3,103,250.67 2,976,476.55 2,984,888.33 3,040,872.89 2,994,776.66 2,995,398.14 2,997,904.81 S371,253;06 380,680.10 1,178,949.85 1,083,761.49 • 705,402.42 3,214,389.48 1,757,284.44 2,982,823.92 4,070,231.27 698,647.87 4,130,24L27 2,869,995.28 . 6,150,668.59 6,414,570.25 6,777,046.55 9,039,670.95 11,914,361.32 12,049,660.65 17,869,985.25 33,633,916.13 488,116,885.85 42,365,427.43 93,659,624.01 $785,268.66 FINANCES. Condition oftTie Treasury, June 30, 1923. [Revised figures.] ''General fund: In Treaijury offices— Gold $188, 577,114. 45 Standard silver dollars 12,395,266. 00 United States notes 992,174. 00 Federal reserve notes 1, 020,143. 00 Federal reserve bank notes 267,337. 45 Subsidiary silver coin 11, 587,152. 52 Minor coin 2,962, 881. 08 Silver bullion (at cost) 30, 807, 359. 92 Unclassified (unassorted currency, etc.)... 4,617,146.27 Public debt paid, awaiting reimbursement. 179, 257. 61 $253, 405, 832. 30 In Federal reserve banks In transit 33, 681,278. 26 8,311, 659. 29 41,992,937. 55 104 REPORT ON T H E FINANCES. General fund—Continued. In special depositaries— Account of sales of Treasury notes and certificates of indebtedness In national-bank depositaries— To credit of Treasurer of the United States. To credit of other Government officers In transit $297, 832,343.40 $7,307,960.12 20,401,047.10 3,131,153.12 30,840,160.34 In treasury of Philippine Islands— To credit of Treasurer of the United States. I n transit 986,823. 60 168. 89 986,992. 49 In foreign depositaries— To credit of Treasurer of the United States. To credit of other Government officers I n transit 150, 539.16 666,591. 79 120. 00 817,250. 95 625, 875, 517. 03 Deduct current liabilities— Federal reserve note 5 per cent fund $177, 517, 738. 90 Less notes in process of redemption 1,083,010.00 176,434,728.90 Federal reserve bank note 5 per cent f u n d . . . Less notes in process of redemption National-bank note 5 per cent fund Less notes in process of redemption 192, 096.55 192, 096. 55 28,891,928.19 14,451, 963. 50 Treasurer's checks outstanding Post Office Department balance Board of trustees, Postal Savings System balance. Balance to credit of postmasters, clerks of courts, disbursing officers, etc Undistributed assets of insolvent national .. banks Retirement of additional circulating notes, act of May 30, 1908 Miscellaneous redemption accounts 14,439,964. G9 1,488, 550.37 9, 626,135.45 6,701, 659.81 39, 658, 544. 33 2, 826, 401. 39 18,480.00 4, 794, 236.06 255,988,701.00 Balance in the Treasury June 30, 1923, as per statement of the public debt of the United States Government 369,886, 816.03 The following is a brief summary of the net change in the general fund balances between June 30, 1922, and June 30, 1923: 105 SECRETARY OF THE TREASURY. General fund balances: Balance per daily Treasury statement, June 30, 1922 $272,105, 512. 63" Deduct net excess of expenditures over receipts in June reports subsequently received 7, 978, 576.78-' Net balance June 30, 1922 Excess of ordinary receipts over expenditm'es chargeable against ordinary receipts in the fiscal year 1923 Total to be accounted for 264,126,935.85317,193,479.32 581, 320, 415.17 PubUc debt retirements from surplus revenue 211,433, 599.14 (This is additional to $402,957,691.10 sinking fund and other debt retirements chargeable against ordinary receipts.) Balance in the Treasury June 30, 1923, as per statement of the public debt of the United States Government 369, 886,816. Oa Total 581, 320, 415.17 United States notes (greenlacTcs).—The redemptions of United Statesr notes unfit for circulation during the year amounted to $313,976,000. 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 Statesnotes for gold from the reserve fund during the year. This fund remains at $152,97.9,025.63, 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.... $737,014,159 411, 692, 423 1,461,383 Gold certificates standing Less amount in Treasury Net Silver certificates standing Less amount in Treasury out$1,191,167, 709 the 454,153, 550 737,014,159 out413, 766, 763; the Net Treasury notes (1890) outstanding Less amount in the Treasury Net. Total. 1,150,167,965 Total 2, 074, 340 411,692,425 1, 473, 383 12,000 1, 461, 383 1,150,167,965 106 REPORT ON T H E FINANCES. Gold fund. Federal Reserve Board.—The balance to the credit of the gold fund of the Federal Eeserve Board on June 30, 1923, amounted to $2,285,169,645.65, an increase of $176,282,734.22 over the amount to the credit of this fund on June 30, 1922. The puUic debt.—The gross public debt of the United States at the close of the fiscal year 1923 amounted to $22,349,687,757.84. This is shown in detail in Exhibit 1, page 134, and Table A, page 492. Receipts and expenditures, on cash basis. The following statements summarize cash receipts and expenditures during the fiscal year 1923, and the estimated receipts and expenditures for the fiscal years 1924 and 1925 on the basis of the latest 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, unrevised. Actual, fiscal year 1923. Net balance in the general fund at the beginning of fiscal year _' .' Receipts: • Ordinary. _ Public debt i 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, fiscal Estimated, fiscal year 1924. year 1925. $272,105,513.00 S370,939,122.00 $270,939,146.06 4,007,135,4.81.00 4,089,738,338.00 3,894,677,712.00 1,107,883,400.00 3,693,762,078.00 1,862,701,800.00 8,368,979,332.00 5,373,500,234.00 5,827,403,024.00 3,294,627,529.00 3,053,069,963.00 2,815,802,469.00 402,850,491.00 4,300,562,190.00 511,968,125.00 1,537,523,000.00 482,277,975.00 2,258,383,400.00 370,939,122.00 270,939,146.00 270,939,180.00 8,368,979,332.00 5,373,500,234.00 5,827,403,024.00 532,827,925.09 565,354,839.98 568,630,000.00 593,309,673.00 611,210,000.00 613,295,184.00 32,526,914.89 24,679,673.00 2,085,184,00 POSTAL SERVICE. Postal receipts Postal expenditures. Deficiency in postal receipts.. 1 Other pubhc debt expenditures and public debt receipts, as shown in this statement, do not include Treasury certificates issued and retired ^Aithin the same fiscal year. NOTE.—The postal deficiency for 1923 and the estimated postal deficiencies for 1924 and 1925, shown above, are included in the general classification of ordinary expenditures and estimated ordinary expenditures on p. 129. Receipts and expenditures for the fiscal years 1922 a n d J 9 2 3 , and estimated receipts and expenditures for the fiscal years 1924 and 1925 {on the basis of daily Treasury statements unrevised). Fiscal year 1922. Fiscal year 1923. Fiscal year 1924. Fiscal year 1925. to M RECEIPTS. Ordinary. T Customs Internal revenue: $356,443,387.18 Income and profits tax $2,068,128,192.68 Miscellaneous internal revenue 1,145,125,084.11 • 3,213,253,256.79 Miscellaneous receipts: Proceeds of Governmentowned securitiesForeign obligationsPrincipal 48,673,554.63 26,548,513.03 Interest Railroad securities.. All other securities , 26,079,128.49 Trust fund receipts (reappropriatcd for investment) 42,113,437.75 Proceeds sale of surplus property 113,606,799.68 Panama Canal tolls, etc 11,747,092.47 Receipts from miscellaneous sources credited direct to (2) appropriations 270,638,980.92 Other miscellaneous.. 539,407,506.97 Total ordinary receipts. 4,109,104,150.94 $570,000,000.00 $561,928,866.66 $1,850,000,000.00 $1,678,607,428.22 933,585,000.00 945,865,332.61 2,783,585,000.00 • 2,624,472,760.83 $493,000,000.00 $1,800,000,000.00 927,585,000.00 2,727,585,000.00 31,656,907.64 201,332,247.86 99,297,348.01 46,361,371.60 60,533,000.00 160,488,004.00 116,500,000.00 30,987.325.00 23,045,000.00 158,976,762.00 113,343,000.00 29,39^,325.00 26,862,679.69 34,655,870.00 42,190,696.00 91,706,388.29 17,271,855.23 57,618,092.00 19,009,000.00 29,912,241.00 19,009,000.00 65,911,405.93 240,333,648.82 161,301,421.00 O (2) .0) . 820,733,853.07 4,007,135,480.56 i 157,308,054.00 541,092,712.00 473,177,078.00 3,894,677,712.00 3,693,762,078.00 > EXPENDITURES. Ordinary (checks and warrants paid, etc.). 1,726,203,772.00 1,828,138,954.00 2,135,867,563.14 1,938,040,934.92 General expenditures .'. 890,000,000.00 1,055,923,689.61 940,000,000.00 991,000,759.24 Interest on public debt , Refunds of receipts: 20,010,000.00 28,515,000.00 28,736,711.58 37,124,086.84 Customs 91,530,000.00 106,875,000.00 45,702,272.89 125,279,043.35 Internal revenue 2,085,184.00 24,679,673.00 64,346,234.52 32,526,914.89 Postal deficiency 6,930,000.00 6,584,000.00 4,316,961.30 Panama Canal 3,025,421.32 Operations in special accounts: 3139,469,450.82 100.618,087.12 . 68,486,299.00 Railroads 94,428,001.01 3109; 436,238.13 . . 3 60,000,0.00.00 War Finance Corporation 87,205,732.12 57,023,838.18 54,635,167; 00 25,852,817.00 Shipping Board Alien property funds 1,825,643.99 31^365^554.15 Includes only estimated receipts on account of principal and interest on loans to railroads under Section 210, Transportation Act, 1920, as amended. s Credited against expenditures. ' . > . . ;^' - 3 Excess of'credits, deduct. '• . • in t Receipts and expenditures for thefiscalyears 1922 and 1923, and estimated receipts and expenditures for the fiscal years 1924 and 1925 {on the basis of daily Treasury statements unrevised)—Continued. Fiscal year 1923. Fiscal year 1922. ^ O 00 Fiscal year 1925. Fiscal year 1924. EXPENDITURES—continued. Ordinary (checks and warrants paid, e^c.)—Continued. Operations in special accountsContinued. Grain Corporation .. Sugar Equalization Board.... Purchase of obligations of foreign Governments Capital stock, Federal intermediate credit banks Loans to railroads. Investment of trust funds: Government life insurance fund Civil-service retirement fund. District of Columbia teachers' retirement fund $32,000,000.00 115,279,636.52 $2,482,476.33 717,834.36 $8,000,000.00 6,000,000.00 $4,000,000.00 o 26,672,161.78 8,091,417.48 34,440,870.00 6,500,000.00 41,970,696.00 7,000,000.00 o 190,517.91 215,000.00 220,000.00 Hi 24,599,340.52 9,283,138.54 230,958.69 90 070 CA7 cnn Public debt retirements chargeable against ordinary receipts: Sinking fund Purchases from foreign repayments Received from foreign Governments under debt settlements • Received for estate taxes Purchases from franchise tax receipts (Federal reserve banks) Forfeitures, gifts, etc 12,000,000.00 13,526,587.00 ^? 90(1 fi'*? t^OO Ifl OA S!^ n^'ii nflo OA^ no 276,046,000.00 284,018,800.00 297,144,300.00 64,837,900.00 32,140,000.00 37,854,500.00 21,084,850.00 68.752,950.00 6; 568,550.00 160,969,325.00 10,000,000.00 160,277,975.00 6,000,000.00 60,3.33,000.00 392,850.00 10,815,300.00 554; 891.10 6,000,000.00 6,000,000.00 310,000,000.00 5a< > O CO Ant) an A c n n nn iOn ocn An] i n tjii Ofic 1f>fi fMl Total expenditures chargeable against ordinary receipts 3,795,302,499.84 3,697,478,020.26 3,565,038,088.00 Excess of ordinary receipts over total expenditures chargeable against ordinary receipts . 313,801,651.10 309,657,460.30 52j ^^ ft! '^ Rno 4fio mi I IJxce§3 of credits, deduct. 2 329,639,624.00 2 See comments pn page 19 on estimated surpluses for 1924 and 1925, 3,298,080,444.00 2395,681,634.00 Public debt expenditures and receipts for fiscal year 1923 and estimates for fiscal years 1924 and- 1925. [On basis of daily T r e a s u r y s t a t e m e n t s unrevised.] Fiscal y e a r 1923. Fiscal y e a r 1924. Fiscal year 1925. EXPENDITURES. Certificates of i n d e b t e d n e s s : Loan and tax P i t t m a n Act : Victory n o t e s . Treasury notes Treasury bonds T r e a s u r y savings securities W a r - s a v i n g s securities: Series of_ 1918. '. Series of 1919 : All o t h e r s e r i e s . . . : Liberty bond retirements ." R e t i r e m e n t s of F e d e r a l reserve b a n k notes a n d n a t i o n a l - b a n k n o t e s . Old debt items Total public debt expenditures D e d u c t 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: S i n k i n g fimd P u r c h a s e of l i b e r t y b o n d s from foreign r e p a y m e n t s R e d e m p t i o n of b o n d s , etc., received as p r i n c i p a l r e p a y m e n t s on obligations - of foreign G o v e r n m e n t s R e d e m p t i o n of b o n d s , etc., received as i n t e r e s t p a y m e n t s on obligations of foreign G o v e r n m e n t s R e d e m p t i o n of b o n d s a n d notes from estate t a x e s R e t i r e m e n t s from Federal reserve b a n k franchise t a x receipts R e t i r e m e n t s from gifts, forfeitures, etc $1,761,607,500 J 174,000,000 .1.91.1,285,650 143,3.39,500 8,000 15,996,573 194>357,200 74,414,564 246,107 313,871,925 35,000,000 50,000 4,703,412,6S1 402,850,491. Total public debt receipts. Excess of p u b h c d e b t r e t i r e m e n t s over t h e r e t i r e m e n t s chargeable against o r d i n a r y receipts d u e t o i n d i c a t e d s u r p l u s a n d decrease in general fund b a l a n c e ie," 666,'666 ^ 25,000,000 269,277.875 20,000; 000 50,000 t?d • 7i ^ 8 2,740,601,375 2, 049, 491,125 H 23,045,000 23,045,000 w 137,924,325 10,000,000 6,000,000 137,232,975 6.000,000 6; 000,000 511,96S, 125 482,277,975 1,537, 523,000 2,258,38.3,400 90,547,571 202,386,406 3,796,804,361 20,000,000 140,000,000 947,8.S3,400 20,000,000 200,000, 000 1,642,70.1,800 4,089,738,338 1,107,883,400 1,862,703,800 210,823,852 429,639,600 4,300,562,190 1,537,523,000 - X 395,681,600 2,258,383,400 NoTB.—Public d e b t e x p e n d i t u r e s a n d p u b l i c d e b t receipts, as s h o w n in t h i s s t a t e m e n t , do n o t i n c l u d e T r e a s u r y certificates issued a n d retired w i t h i n t h e s a m e fiscal y e a r . § $310,000,000 $297,144, .300 37; 854,500 6^, 752,950 6,56*^, 550 10,815,300 554, 891. "],"4i6,'3.33,'500 ] 6, 000,000 50,000,000 4,300,562,190 Deposits t o retire Federal reserve b a n k notes a n d n a t i o n a l - b a n k notes T r e a s u r y s a v i n g s seciu-ities O t h e r n e w issues of securities, i n c l u d i n g T r e a s u r y b o n d s , n o t e s , a n d certificates. 93,965,900 509,184,800 528,157,5S7 $284,018,800 32,140,000 SI, 000,000,000 SI, 031,418,500 O CD Preliminary statement showing classified expenditures of the Government for the period from July 1, 1922 j to June SO, 1923. [For c o m p a r a t i v e figures a n d t o t a l expenditures'for t h e fiscal y e a r 1922, see T a b l e F , p . 509.] [On t h e basis of daily T r e a s u r y s t a t e m e n t s imrevised.] J u l y , 1922. September, 1922. October, 1922. November, 1922. $1,565, 229.69 22, 565.34 703, 074.56 10,146, 201.89 32,833, 529.93 2,346, 278.14 66, 413.53 23,966, 177; 93 28,975, 358.44 12,899, 672. 38 2,325, 340.91 317, 146.81 40,790, 691.65 2,588, 667.86 2,222, i239.75 161,768,588. 81 3 24,330.75 $1.907,039; 74 31,754.73 1,107,959.14 16,011,547.09 29,825,099.96 1,911,980.79 33,796.30 24,463,816.08 25,285,843.36 12,756,049.59 1,898,945.44 . 632,030.08 36,132,148.85 1,547,982.42 1,998,375.58 155,544,369.15 3 26,199.16 $2,109,789.14 30,127. 65 6,081,235.63 8,418,322.83 36,936,205.15 1,900,995.63 68,001.06 27,633,189.90 32,700,352. 64 14,030,967.33 1,685,832.50 509,574.91 40,442,144.09 2,148,281.37 2,213,850.67 176,908,871.10 820,412.15 $1,718,774.23 31,132.09 683,814.53 11,978,715.78 34,135,638.31 1,962,415.81 137,999.71 30,294,944.47 30,535,123.44 12,220,391.81 1,797,535.71 639,297.40 32,870,220.89 3,259,600.80 2,068,012.81 164,157,618.37 226,038.62 161,792,919.56 134,609,604.41 155,570,568.31 80,229,117.75 176,088,458.95 98,484,626.99 163,931,579.75 37,602,397.83 t-i 2,799,505.02 7,141,260.40 10,000,060.00 432,625. 76 2,509,052.34 3,868,787.91 29,177.46 1 7,306.52 2,392,517.84 4,384,763.62 1,919,481.98 3,799,440.76 o 446,821.17 312,304.11 988,996.15 13,600,323.65 25,000,000.00 348,174.41 10,436,700.84 3,144,090.95 1 8,416,196.36 1 11,323,490.44 1 4i 048,536.93 1551,306.46 589,292.93 309,811.50 27,764,839.02 . 37,330,797.18 33, 612,452.02 3,485,945.83 3,332,530.34 ^ 65,502,609.43 6,319,963.87 1 3,239,198.49 13,056,698.45 1 8,152,106.52 3,473,257.04 1 453,149. 63 1,510,214.74 110,748,779.66 3,456,920.83 2,404,701.10 A u g u s t , 1922. D e c e m b e r , 1922. J a n u a r y , 1923. ORDINARY. General expenditures: Legislative e s t a b U 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 United States Veterans' Bureau K 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 . . . Total D e d u c t unclassified i t e m s . . Total -. I n t e r e s t on p u b l i c d e b t . . R e f u n d s of receipts: Customs : : Internal revenue P o s t a l deficiency : , P a n a m a Canal " O p e r a t i o n s i n special accounts: Railroads , War, F i n a n c e Corporation Shipping Board Alien property funds G r a i n Corporation Sugar E q u a l i z a t i o n B o a r d 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 L o a n s t o railroads I n v e s t m e n t of t r u s t f u n d s : G o v e r n m e n t life i n s u r a n c e f u n d Civil-service r e t i r e m e n t fund D i s t r i c t of C o l u m b i a t e a c h e r s ' r e t i r e m e n t f u n d . Total ordinary $1,478, 277.77 24, 466.76 1,015,841.56 10,392, 140.88 39,809,807.39 709, 376.23 198, 451. 87 28,508, 293.25 26,357, 283.17 8,840,710.56 1,911,126.89 759, 723. 28 43,522, 166.99 3,002,216.94 1,622, 690. 54 167,855,670.34 3 2,929,152. 27 170,784, 822. 61 28,919, 093.71 5,749, 049.72 8,651, 908.44 12,000, 000.00 129. 86 10,013, 602.99 1 7,296, 340.82 112,345, 502.80 1502, 565.56 $1,622,448.16 SI, 814,217.24 27,881.41 27, 603. 69 797,626.16 787, 345. 26 13,421,118.97 11,142, 892.10 35,175,963.08 32,429,418. 57 2,556,960.26 2,116,657.43 57,194.37 112, 092. 93 30,009,555.94 25,167,874.75 26; 348,673.31 47,967,238.01 13,839,683.12 10,690,38L33 1,857,647.01 1,623,004.23 531,317.12 506, 972. 69 38,959,912.52 36,906,135.83 1,061,903.10 1,964,616.11 1, 617,697.97 1,605,987.73 164,501,637.93 178,122,196. 61 4i 335,798.54 8 234,202.' 73 160,165,839.39 178,356,399.34 18,486,227.36 112,080,220.54 6,&27,318.26 21,663,458.50 171,911.89 407,023.11 590, 863.00 : 27,862.00 1,100,000.00 2,064,862.00 400,000.00 742,000.00 2,065, 298.53 1,824,687.58 10,090,173.68 1,966,913.36 11,324,017.44 3.023,783.09 1.; 006,859.47 17,976.28 2,361,714.10 2,083.32 24,052.60 1,715,578.90 1721,673.03 21, o n . 20 2,851,943.37 10,695.90 17,997. 47 218,025,762.25 304,132,012.53 411,109,750. 05 186,322,325.00 289,943,929.20 241,717, r65.54 " " i s ! 5ii."29" 218,696,870.97 O % O "A ;> in PubUc debt retirements chargeable against ordinary receipts: Sinking fund Purchases from foreign repayments Received from foreign Governments under debt settlements Received for estate taxes. Purchases from franchise tax receipts (Federal reserve banks) Forfeitures, gifts, etc..., TotaL 6, 417, 500.00 • 2, 522, 250.00 . 42,626, 550.00 450,000.00 382,850.00 48,947,960.00 386,000.00 12,858,050.00 45,500.00 405,900.00 1,923,400.00 10,815,300.00 312,200.00 54, 529,400.00 111,000.00 67, 517,100.00 6,400.00 145,800.00 ^ - 500. 00 7,. 500.00 •3,000.00 1,300. 00 1,000.00 2,500.00 >, 800,850.00 3,529,750.00 42,979,550.00 54,787,500.00 67,930,400.00 50,231,600.00 25,954,450.00 347, 111, 562. 53 465,897,250.05 254,252,726.00 340,175, 529.20 267,671,615.54 Total expenditures chargeable against ordinary receipts. 226,497,720.97 221, 555, 512.25 PUBLIC D E B T . Public debt retirement chargeable against ordinary receipts (see above) Other pubUc debt expenditures Total public debt.. Recapitulation, public debt: Certificates of indebtedness Treasury notes Treasury bonds War-savings securities Treasury savings securities First Liberty bonds Second Liberty bonds Third Liberty bonds Fourth Liberty bonds Victory notes Other debt items National-bank notes and Federal reserve bank notes. Total pubUc debt.. 6,800,850.00 27,799,396.78 3, 529,750.00 42,979,550.00 449, 547,608. 45 697,621,945.63 54,787, 500.00 646,940,835; 97 67,930,400.00 87,838, 325.98 50,231,600.00 1,450,939,372.19 25,954,450.00 2,264,096,760.00 34,600,246.78 453,077,358.45 740,601,495.63 701,728,335.97 155,768,726.98 1,501,170,972.19 2,290,051,210.00 9,117,500.00 299,136,000.00 .687,114, 500.00 506,355,500.00 35,025,000.00 25,000,000.00 939,494,500.00 19,600,000.00 1,623,911,500.00 12,315,300.00 2, 029,182.63 814,663.35 4 3,040,000.00 14,910,700.00 3,837,800.00 5,600,400.00 62,973,350.00 2,980.00 8,614,650.00 13,130,883.24 930,274.65 . 18,000.00 290,600.00 7,385,150.00 6,578,400.00 506,962,450.00 4,645.30 6,776,069.00 493,464,861.15 . 1,258,238.85 11,300.00 718,350.00 8,436,150.00 902; 450.00 141,101,300.00 214, 430.00 7,717,330.00 1,501,170,972.19 2,290,051,210. 00 3,013,246.78 519,560.00 2,300.00 124,200.00 10,000.00 174,950.00 16,169,200.00 3,240.00 5,466,050.00 2,725,888.45 651,620.00 100.00 7,100.00 100.00 200.00 144,656,000.00 3, 560.00 5,896,800.00 34,600,246.78 453,077,358.45 2,347,735.63 2,011, 762.82 922, 323.15 -924,260.00 3,050, 000.00 1,000.00 9,198,000.00 16,917, 150.00 1,253,000.00 13,027, 550.00 2,168, 450.00 1,000. 00 33,054,250.00 147, 687, 400.00 1,000.00 1, 200.00 6,706,750.00 9,587, 000.00 740,601,495.63 701,728,335.97 155,768,725.98 1 Deduct, excess of credits. , • 8 During the fiscal year 1923 to date, allotments for veterans' relief have been made to the Treasury Department in the amount of $3,164,425.11, to the War Department in the amount of $4,889,241.91, and to the Navy Department in the amount of $2,652^03. Similar allotments in the fiscal year 1922 to the Treasury Department were $26,350,668.66, to the War Department $4,866,383.40, and to the Navy Department $529,237,84, Expenditures under these allotments, however, appear as expenditures of the respective departments and not of the Veterans' Bureau. In the fiscal year 1922, payments on account of veterans' relief made prior to August 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 included under other independent offices and commissions. 8 Add. < Counter entry (deduct). NOTE.—The analysis of expenditures for the fiscal year 1923 is on the same basis as the Budget, with necessary adjustments to cover receipts credited to appropriations, including particularly proceeds of railroad securities. The analysis for the fiscal year 1922 is on the Budget basis, without adjustment. The figures given for operations in special accounts are net figures and make allowance for receipts and deposits credited to the accoimt concerned. i O H w H > in Preliminary statement showing classified expenditures of the Government for the period from July 1, 1922, to June SO, 1923—Continued. ORDINARY. General expenditures: Legislative e s t a b l i s h m e n t E x e c u t i v e proper State Department Treasury Department War Department • D e p a r t m e n t of Justice P o s t Office D e p a r t m e n t N a v ^ Department Interior D e p a r t m e n t D e p a r t m e n t of Agricultin-e D e p a r t m e n t of Commerce D e p a r t m e n t of L a b o r U n i t e d States Veterans' B u r e a u * O t h e r i n d e p e n d e n t offices a n d c o m m i s s i o n s . District of Columbia Total D e d u c t unclassified i t e m s Total I n t e r e s t on p u b l i c d e b t Refimds of receipts: ' Customs I n t e r n a l revenue . P o s t a l deficiency '. P a n a m a Canal Operations i n special accounts: Railroads W a r F i n a n c e Corporation •... Shipping Board Alien p r o p e r t y fund.s Grain Corporation Sugar Equalization B o i r d P u r c h a s e of obligations of foreign G o v e r n m e n t s Loans t o railroads I n v e s t m e n t of t r u s t funds: G o v e r n m e n t life insurance fund Civil ser\ice retirement fund District of Columbia teachers' r e t i r e m e n t fundT o t a l ordinary T o t a l J u l y 1, 1921, t o J u n e 30,1922. March, 1923. A p r i l , 1923. May, 1923. J u n e , 1923. T o t a l J u l y 1, 1922, t o J u n e 30, 1923. 833,695.16 26,169.53 727,700.40 589,058.45 225,057.09 174,187.75 26,862.57 173,727.06 372,589.74 376,165.02 508,826.08 517,151.09 359,633.69 699,889.89 989,738.77 $2,158, 142.94 29; 748.04 1,019, 372.63 11,901, 323.75 25,270 468. 66 1,883 493.21 986.11 30,880. 108.80 26,411, 008.35 8,661, 854.77 1,676, 832.62 766, 406.21 40,223, 417.94 2,170, 85L84 1,937, 117.00 $1,749,382.08 29,035.95 806,886.84 10,053,294.58 32,976,255.41 2,061,813.71 121,066.03 25,811,035.04 26,961,840.77 8,258,757.77 1,645,417.65 600,690. 76 38,635,147.73 1,798,067.25 2,015,859.95 1 $4,737,196.96 40,176.63 730,210.43 23,152,714.73 27,242,905.66 2,086,880.64 1 26,105.70 28,885,573.43 27,021,445.40 8,023,139.08 1,683,877.05 764,410.02 39,111,782.72 5,912,680.16 1,620,581.76 $945, 444.70 28, 718.33 1,002, 209.16 7,809, 528.55 37,873, 285.75 • 1,810,446.19 147, 755. 68 29,407, 065.66 31,686, 302.25 8,147, 904. 57 2,169, 122.62 696, 746.36 37,766, 030.93 2,557, 527. 68 3,141, 552.94 $14,165,243.89 349,380.15 15,463,276.30 8 145,016,859.60 392,733,634.86 23,521,485.79 146,942.46 333,201,362.31 354,623,058.88 128,745,677.33 21,783,508.71 7,241,466.73 461,719,433.83 28,712,285.42 .24,053,705.47 $17,088, 112.87 218, 690.36 9,666, 571.70 209,104, 990.87 454,730, 717. 67 17,888, 828. 58 3,384, 127.31 476,775, 193.84 331,814, 027. 57 142,695, 844.10 21,688, 014. 86 6,227, 471.57 376,749, 664.29 43,871, 656.40 23,731, 562.56 147,600,452.29 3 793,973.00 154,986,160.55 8 330,788.49 153,524,551. .52 8 1,131,666.41 161,513,075.05 1,952,720.46 164,994,130.01 3 428,270.15 1,951,477,32L 73 1,438,386.81 2,135,635,474. 55 3 232,088.59 148,394, 425.29 .58,131,218. 72 155,316,919.04 141,491,953.28 151,656,217.93 151,091,599.68 159,560,354. 59 100,726,707.87 165,422,400.16 21,950,040,934.92 94,067,92L47 1,055,923,689.61 836, 940.81 22,215, 542.30 20, 825. 60 470, 634.77 1,009,208.55 8,909,489.10 304,999.94 530,590.47 1,107,708.10 9,900,702.13 1 15,000,000.00 173,151.33 1,294,667.87 12,238,890.60 689,934. 46 2,332,045. 28 19,351, 654.75 17, 663,419.49 J 892,233.70 2,406,810. 51 18,993,391.41 7,781,781.92 643,917.16 2,080,372.69 13,067,762.91 385,662.15 12,281,683.31 10,731,930.82 17,108,665.17 1,989,019.59 1378,200.57 71,000.00 F e b r u a r y , 1923. 1,502,264.94 8,904,475.94 464,878.37 28,736,711.58 125,279,043.35 32,526,914.89 4,316,961.30 37,124,086.84 45,702,272.89 64,346,234.52 3,025,42 L 32 13,808,230.46 16,808,034.84 1716,302.54 I 1,052,19 L 42 100,618,067.12 I 109,436,238.13 57,023,838.18 1 1,385,554.16 '3,'259,'666.'66 1 139,469,450.82 94,428,001.01 87,205,732.12 1,825,643.99 32,000,000.00 » 15,279,636.52 717,834.36 3,071,000.00 'i3,'526,'587.'66 2,737,791.09 26,672,16L78 8,091,417.48 190,517.91 21,599,340.52 9,283,138.54 230,958.69 281,404,433.63 3,2'94,627,529.16 3,372,607,899.84 2,482,476.33 2,200, 000.00 2,017,774.99 I 972,704.42 19,59L 87 2,707,758.12 1,449,496.52 is, 382." 90 23,020. 29 29,974.01 243,988,968.84 310,472,948.03 301,847,746.20 286,965,616.92 1,949, 422.13 2,135,867,563.14 991,000,759.24 2,482,476.33 O H O H > a Public debt retirements chargeable against ordinary receipts: Sinking fund Purchases from foreign repayments Received from foreign Governments under debt settlements Received for estate taxes Purchases from franchise tax receipts (Federal reserve banks) Forfeitures, gifts, etc 283,900.00 30,539,700.00 160,400.00 16,862,300.00 298,000.00 30,980,700.00 555,900.00 272,850.00 788,500.00 284,018,800.00 32,140.000.00 276,046,000.00 64,837,900.00 8,752,950.00 914,300.00 68,752,950.00 6,568,550.00 21,084,850.00 10,815,300.00 554,891.10 60,333,000.00 392,860.00 3,150.00 206,100-00 4.64L10 3,350.00 9,650.00 287,050.00 31,462,100.00 17,139,791.10 32,070,550.00 69,676,900.00 402,850,491.10 422,694,600.00 Total expenditures chargeable against ordinary receipts 244,276,018.84 341,935,048.03 318,987,537.30 319,036,166.92 351,081,333.63 3,697,478,020.26 3,795,302,499.84 287,050.00 44,883,553.14 31,462,100.00 559,761,629.44 17,139,79L10 71,946,656.62 32,070,550.00 699,559,602.45 69,676,900.00 560,012,002.42 402,850,491.10 7,560,947,689.07 422,694,600.00 6,608,631,896.93 45,170,603.14 591,223,729.44 89,086,447.72 731,630,152.45 629,688,902.42 7,963,798,180.17 7,031,226,496.93 11,360,000.00 38,643,500.00 43.871,000.00 10,000,000.00 375,429,000.00 76,268,200.00 891,188.12 2,071,299.60 96,950.00 33,700.00 146,800.00 42,395,950.0) 1,860.00 4,805,200.00 755,073.28 2,405.687.65 32,500.00 270,400.00 31,113,450.00 356,200.00 638,856,900.00 4,341.52 3,964,600.00 5,096,993,000.00 143,339,500.00 8,000.00 661,148.17 528,157,586.60 15,996,572.75 1,991,986.75 78,550.00 .3,100.00 68,654,900.00 111,53^,900.00 541,100.00 65,987,100.00 478,600.00 16,751,650.00 102,631,650.00 1,911,285,650.00 246,106.82 1,870.00 3,027,347.50 74,414,564.00 4,775,864,950.00 6,151,026.34 1,398,131.80 100.00 132,950.00 49,700.00 104,300.00 20,036,650.00 180.00 5,937,565.00 526,535,000.00 156,000.00 8,000.00 975,5S9.99 2,108,526.95 150.00 218,600.00 299,400.00 239,900.00 54,760,550.00 6,810.00 5,915,202.50 45,170,603.14 591,223,729.44 89,086,447.72 731,630,152.45 629,688,902.42 Total PUBLIC DEBT. Public debt retirements chargeable against ordinary receipts (see above) Other public debt expenditures Total public debt.. Recapitulation, public debt: Certificates of indebtedness Treasury notes Treasury bonds War-savings securities Treasury savings securities First Liberty bonds Second Liberty bonds Third Liberty bonds : Fourth Liberty bonds Victory notes , Other debt items National-bank notes and Federal reserve bank notes.. Total public debt.. 84,663,604.53 1,467,200.00 413,600.00 6,016,150.00 137,788,40100 9,574,450.00 1,908,139,250.00 58,122.40 107.251,870.00 in Q O H W H 7,963,798,180.17 7,031,226,496. S3 1 Deduct, excess of credits. «Includes $12,000,000 for subscriptions to capital stock of Federal intermediate credit banks. «Add. < During the fiscal year 1923 to date, allotments for veterans' relief have been made to the Treasury Department in the amount of $3,164,425.11, to the War Department in the amount of ^1,889,241.91, and to the Navy Department in the amount of $2,652,303. Similar allotments in the fiscal year 1922 to the Treasury Department were $26,350,668.66, to the War Department $^1,866,383.40, and to the Navy Department $629,237.84. Expenditures imder these allotments, however, appear as expenditures of the respective departments and not of the Veterans' Bureau. In the fiscal year 1922, payments on accoimt of veterans' relief made prior to Aug. 11, 1921, by the War Risk Insurance Bureau are mcluded under Treasury Department, while similar payments made prior to that date by the Federal Board for Vocational Education are included under other independent offices and commissions. * NOTE.—The analysis of expenditures for the fiscal year 1923 is on the same basis as the Budget, with necessary adjustments to cover receipts credited to appropriations, including particularly proceeds of raiTroad securities. The^nalysis for the fiscal year 1922 is on the Budget basis, without adjustment. The figures given for operations in special accounts are net figures and make allowance for receipts and deposits_credited to the account concerned. CA3 114 REPORT ON THE riNANCES. 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 beginning of the year: Comparison of receipts, fiscal years 1923 and 1922, on the basis of warrants issued {net). 1923 Ordinary receipts: Customs , : . . . $562,189,038.87 Internal revenueIncome and profits tax 1,691,089,534.56 935,699,504.36 Miscellaneous taxes Miscellaneous— Interest, premium and discountInterest on loans to forieign Governments . . . Interest on miscellaneous obligations of foreign Governments... Interest on miscellaneous obligations Interest on overpayments under section 209, transportation act, 1920, as amended. Interest on farm-loan bonds Interest on public deposits Interest on advance payments to contractors Discount on bonds and notes purchased Gain by exchange Sales of Government propertyProceeds of sale of Government property Sale of office material, etc., including auction sales (General Supply Committee).. Disposal of properties, United States Housing Corporation. Sale of war supplies Sale of buildings, plants, etc. (war supplies).... Sale of seal and fox skins Miscellaneous Government property Public-domain receiptsSale of public lands . Receipts under mineral leasing acts Forest reserve fund . National park revenues. Other Federal reserve bank franchise tax Profits on coinage, bullion deposits, etc Revenue-producing enterprisesOperation of properties, United States HousCorporation Funds deposited for construction loans under section 11,- merchant marine act of March 9,1920 1922 Increase 1923. $357,544,712.40 $204,644,326.47 Decrease 1923. $395,828,930.29 185,540,339.09 2,086,918,464.85 1,121,239,843.45 179,101,699.15 6,607,723.54 172,493 975.61 22,230,548.71 21,107,317.25 1,123,231.46 1,412,896.77 1,845,102.95 432,206.11 10,344.34 3,000.00 5,423,694.58 8,611,170.08 .7,344.34 3,187,475.50 5,450,769.69 7,642,473.37 2,191,703.68 576,023.85 14,300.29 816,667.85 6,109,449.60 3,4.39,260.22 8,196,420.94 561,723.56 2,622,592.37 2,086,971.34 12,129,518.21 22,838,951.33 10,709,433.12 574,215.60 659,617.59 •85,402.09 961,965.90 77,931,236.95 1,740,999.96 89,321,496.44 779,034.06 11,390,259.49 4,524,444.62 400,445.76 482,515.25 292,998.87 4,041,929.37 107,446.89 417,448.19 665,767.99 248,319.80 656,608.40 895,391.22 238,882.82 8,825,655.60 5,446,152.72 616,529.86 974,946.48 8,337,230.58 5,125,668.20 377,809.72 476,937.25 10,850,604.72 69,974,465.64 25,865,170.45 21,660,921.07 996,861.81 1,402,531.28 50,000,000.00 488,425.02 320,484. ^2 138,720.14 498,009.23 49,123,860.92 4,204,249.38 405,669.47 60,000,000. 00 115 SECRETARY OF THE TREASURY. Comparison of receipts, fiscal years-1923 and. 1922, on the basis of warrants issued .{net)—Continued. 1923 O r d i n a r y receipts—Continued. Miscellaneous—Continued. R e v e n u e - p r o d u c i n g enterprises— Continued. Center Market, W a s h ington, D . C E a r n i n g s from r a d i o service Tolls, profits, etc., P a n a m a Canal Other. R e n t of p u b l i c b u i l d i n g s a n d grounds Fees, fines, penalties, forfeitures, etc.— Alaska fund Fees on letters p a t e n t . . Registers' a n d receive r s ' fees ( L a n d Office) Consular a n d p a s s p o r t fees T a x on circulation of national banks C u s t o m s Service. N a v y fines a n d forfeitures • N a v a l hospital fund Naturalization fees Immigration head t a x . . Judicial Forfeitures b y contractors Other Gifts a n d contributions— F o r river a n d h a r b o r improvements F o r Forest Service cooperative work • Contributions b y N e w Y o r k L i b e r t y loan associations '. Donation by Eastman K o d a k Co i Moneys received from persons u n k n o \ v n D o n a t i o n s t o t h e United] States Other .......:. Repayments of investmentsPrincipal of loans m a d e • •t o foreign Governments P r i n c i p a l of sale of surp l u s w a r supplies t o foreign G o v e r n m e n t s . L i q u i d a t i o n of capital stock. Federal l a n d banks L i q u i d a t i o n of capital stock. Grain Corporation Sale of farm-loan b o n d s . R e t u r n of advances ' m a d e t o reclamation fund P r i n c i p a l of loans m a d e by United States H o u s i n g Corporation. • Other Assessments . a n d reim• bursemeuts— Salaries a n d expenses, national-bank examiners E x p e n s e s of redeeming national c u r r e n c y . . . . • Assessments on Federal reserve b a n k s for salaries a n d expenses. Federal Reserve Boiird...:'..: 1922 Increase 1923. $236,634.67 $48,524.08 339,775.22 369,806.62 17,686,963.95 .405,667.40 11,854,949.17 289,420.72 5,832,014.78 116,246.68 940,765.46 932,646.66 8,118.80 183,349.95 3,031,276.53 136,053.10 2,875,013.15 47,296.85 156,263.38' • Decrease 1923. $188,110. 59 $30,031.40 286,116.8S 835,229.48 1,121,346.36 7,702,265.66 7,978,181.14 275,915.4S 4,304,331.82 621,895.65 4,537,773.70 1,032,589.34 233,441.88 410,693.69 2,925,278.82 871,083.44 654,562.50 4,151,694.68 6,647,494.25 6,912,595.86 1,673,740.11 657,190.00 2,514,407.19 5,132,942.71 3,987,317.04 802,656.67 2,627.50 1,637,287.49 1,514,551.54- 151', 022.92 1,277,881.-06 . 37; 487.32 1,258,977.191 •. 3,007,755.22 2,929,311.77 ~ 78,443.45 1,514,772.16 1,394,826.71 119,945.45 113,535.60 18,903.14 200,000.00 200,000.00 182,770.60 182,770.60 2,838. 23 2,443.11 ~ 395.12 2,578.52 116,954.92 12,771. 21 57,483.55 '59,"47i"37' 31,603,108.49 49,114,107. 46 10,192.69 17,510,998.97 53,799.15' 53,799.15 . 2,556,775.00 1,057,830.00 36,750,000.00 25,000,000.00 44,400,000.00 1,000,000.00 1,000,000.00 1,561,975.93 63,822.30 86,789.47 2,145,855.91 2,012,600.00 968,516.57 1,079,534.33 111,017.76 2,215,228.62 3,067,169.36 851,940. 74 1,498,945.00 25,000,000.00 7,650,000.00 ^ 1,475,186.46 '63,822.30 133,'255.91 116 REPORT ON T H E EINAJSTCES. Comparison of receipts, fiscal years 19^3 and 1922, on the basis of ivarrants issued {net)—Continued. 1923 Ordinary receipts—Continued. Miscellaneous—Continued. Assessments and reimbursements—Continued. Payment' by German Government under terms of the armistice. Settlement of claims (War and Navy) Work done by individuals, corporations, etal R e i m b u r s e m e n t for Government property lost Damages to Government property Other District of Columbia— Revenues of the District of ColumbiaDistrict of Columbia share (excluding trust funds).. United States share Miscellaneous unclassified receipts Trust funds: Government life-insurance f u n d Premium on converted insurance. Interest Civil service retirement and disability f u n d Interest on investments Profits on investments Deductions from Indian tribal funds. Deductions from Indian reimbursable Increase, 1923. 1922 $344,663.88 $4,403,655.52 2,435,403.62 12,000.00 1,633,102. 62 1,958,032.31 Total miscellaneous receipts, inl^ cludine Panama Canal and sales of pubUc lands : , Total. 324,929.69 552,437. 41 63,953.77 1,620,689.50 43,070.48 1,279.003.36 20,883.29 341,686.14 16,930,989.18 682,968.05 14,777,218.19 457,798.25 2,153,770.99 225,167.80 655,970.38 4,134,975.41 30,710,055.71 3,129,702.63 26,007,533.63 2,104,698.40 4,702,522.08 1.025,106.23 981,888.87 459,334.64 522,554.23 160,768.46 3,579,005.03 127,920.00 10,790.12 127,920.00 482. 51 3,470.32 3,470.32 Deductions from salaries from revenues of Virgin Islands Deductions from salaries payable by Porto Rican treasury Deduction from cooperative employees (Agriculture) : Deferred deductions due civil service retirement and disabiUty fund Service credit payments Soldiers' Home permanent fund Army, Navy and Marine Corps deposit funds Indian moneys— Proceeds of labor... Proceeds of sale of Indian lands and timber... Other Miscellaneous trust funds District of Columbia trust funds $4,058,991.64 $2,423,403.62 391,668.95 11,272.63 Decrease, 1923. 55.8 223.88 2,154.06 2,154.06 2,055.39 41.25 2,014.14 1,617.64 1,617.64 40,098.79 10,420.91 29,677.88 1,009,262.18 2,446,908.78 1,437,646.60 434,282.92 • 820,435.03 1,254.717.95 34,124,62L91 22,294,874.18 1,608,110.22 24,099.49 1,238,698.99 81,485.92 289,013.87 321,838.11 1,789,097.66 1,577,766.73 211,330.83 658,041,542.31 538,038,906.09 271,063,979.24 151,061,343.02 3/847,019/620.10 4,1Q3,741/926.79 475,708i305.71 732,430^612.40 11,829,747.73 269,411.23 57,386.43 32,824.24 117 SECRETARY OF THE TREASURY. Coinparison of receipts, fiscal years 1923 and 1922, on the basis of warrants issued {net)—Continued. 1923 Deduct moneys covered by warrant in. .year subseqtient to deposit thereof Add moneys received in fiscal year but not covered by warrant Add receiipts credited direct to appropriations [see note]: Proceeds of railroad securities owned by the Government.. Receipts from miscellaneous sources Increase, 1923. Decrease, 1923. $2,196.46 $146,592.21 $144,395.75 3,847,017,423.64 4,103,595,334. 58 8475,708,305. 71 732,286,216.66 28,259.13 1,196. 46 27,062. 67 . 99,119,987.01 67,236,748.72 Total ordinary receipts 4,013,402,418.50 Public debt receiptsVictory Liberty loan Treasury notes (various series). 2,000,938,300.00 Certificates of indebtedness 4,292,2.59,500.00 Treasury (war) savings securities 201,991,038.95 29,760.00 Postal-savings bonds 90,547,571. 50 Bank-note fund 763,962,300.00 Treasury bonds of 1947-1952 Total pubhc debt receipts 1922 475,735,368. 38 732,286,216.65 2 1,300.00 1,93-5,404,750.00 3,905,090,000.00 1,300.00 65,533,650.00 387,169,500.00 70,325,625.10 112,200.00 107,086,627.50 131.665,413.85 82,460.00 16,539,056.00 763,962,300.00 6,018,017,902.60 1,348,332,063.85 16,621,516.00 Total receipts, exclusive of postal *. 11,363,130,888.95 10,121,614,433.64 1,824,067,432.23 Postal revenues • 532,827,925.09 484,853,540.71 47,974,384.38 748,907,732.65 Total receipts, . postal 7,349,728,470.45 4,103,-596,531.04 including 11,895,958,814.04 10,606,467,974.35 1,872,041,816. 61 748,907,732,65 * Counter entry, deduct. NOTE.—Items of this character represent cash receipts heretofore credited against expenditures. In the fiscal year 1923, the amounts are included in the totals of both receipts and expenditures, to adjust the figures to an actual receipt and actual expenditure basis [see also similar items included under expenditures, page 126]. Summary of receipts by organization units. 1923 1922 O r d i n a r y receipts: $549,410.11 S458,287.55 Legislative 163.69 E x e c u t i v e Oflice 91,297,997.02 I n d e p e n d e n t offices. 60,985,210.79 7,741,852.78 7,140,306.36 D e p a r t m e n t of A g r i c u l t u r e . . . . . 944,515.74 617,698.98 D e p a r t m e n t of Commerce 153,373,208.87 '40,206,625.97 D e p a r t m e n t of t h e Interior 6,925,905.00 .5,362,279.57 D e p a r t m e n t of .Justice. D e p a r t m e n t of L a b o r 5,159,649.90 • 3,661,509.46 Navy Department 19,020,706.92 38,468,426.20 47,859.30 129,555.69 P o s t Office D e p a r t m e n t 7,745,552.44 8,068,492.03 D e p a r t m e n t of S t a t e Treasury Department 3 3,519,949,600.81 < 3,777,899,260.13 War Department 97,077,537.77 131,789,604.77 P a n a m a Canal 17,869,985.25 12,049,660.66 '•District of C o l u m b i a District of Columbia reve18,720,086.74 16,3,54,984.92 n u e s , t a x e s , etc U n i t e d States revenues from District of Columbia 682,966.05 467,798.25 sources Receipts n o t classified b y de11,039.22 3,907.96 partments. 3,847,019,620.10 D e d u c t m o n e y s covered b y w a r r a n t in year subse(iuent t o deposit thereof 4,103,741,926.79 2,196.46 146,692.21 3,847,017,423.64 4,103,596,334.58 Increase, 1923. Decrease, 1923. $91,122. 56 163.69 $30,312,786,23 601,546.42 326,816.76 13,166,682.90 1,673,625.43 1,498,140.44 19,447,719,28 81,696.39 322,939. 59 267,949,659.32 34,712,067.00 5,820, .324.60 2,365,101. 82 225,167.80 7,131.26 55,890,192.40 312,612,499.09 65,890,192.40 312,168,103.34 144,395.75 1 Includes $656,508.40 sales of pubhc lands. 2 Includes $895,391.22 sales of public lands. 8 Includes $562,189,038.87, customs receipts, and $2,626,789,038.92, internal revenue receipts. < Includes $357,544,712.40, customs receipts, and $3,208,158,308.30, internal revenue receipts 118 REPORT ON T H E EINANCES. Summary oj receipts by organization units—Continued. 1923 A d d m o n e y s received i n fiscal year b u t n o t covered b y w a r r a n t A d d receipts credited direct to a p propriations, [see n o t e ] : Proceeds of railroad securities owned b y t h e G o v e r n m e n t . . R e c e i p t s from miscellaneous sources T o t a l o r d i n a r y receipts P u b l i c d e b t receipts $28,259.13" 1922 Increase, 1923. $1,196.46 $27,062.67 99,119,987.01 67,236,748.72 4,013,402,4-18.50 7,349,728,470.45 65,917,255.07 $312,468,103.34 4,103,596,631. 04 6,018,017,902.60 1,331,710,567.85 T o t a l receipts i n t o t h e gen11,363,130,888.95 10,121,614,433.64 1,387,627,822.92 eral fund P o s t a l revenues u n d e r control of 47,974,384. 38 484,853,540.71 632,827,926.09 t h e P o s t m a s t e r General Total receipts, p o s t a l revenues Decrease, 1923. 312,468,103. 34 including 11,895,958,814.04" 10,606,467,974.35 1,435,602,207. 30 312,468,103. 34 NOTE.—Items of this character represent cash receipts heretofore credited against expenditures. Im the fiscal year 1923, the amounts are included in the totals of both receipts and expenditures, to adjust the figures to an actual receipt and actual expenditure basis [see also similar items included under expenditures, page 126].. Comparison of expenditures, fiscal years 1923 and 1922, on the basis of ivarrants issued {net). 1923 1922 Increase, 1923. Decrease, 1923. LEGISLATIVE ESTABLISHMENT. U n i t e d States Senate H o u s e of R e p r e s e n t a t i v e s . TiegisiBtive, Tnisceilaneous A r c h i t e c t of t h e Capitol B o t a n i c G a r d e n . . .* L i b r a r y of Congress G o v e r n m e n t P r i n t i n g Office T o t a l legislative ment ... establish.- $2,361,337.50 6,661,409.79 19,19L11 1,221,887.12 86,441.02 1,064,179.21 3,011,520.66 $2,365,567.19 6,047,115.68 424,314.41 14,425,966.41 16,725,922.69 357,625.23 216,534.74 11,560.30 325,672.28 14,877.22 363,965.02 84,899.76 822,600.70 2 6,981,425.05 $4,229.69 $614,294.21 405,123.30 1,221,887.12 1,541.26 241,578.51 3,969,904.39 2,079,301.10 4,379,257.38 EXECUTIVE OFFICE. Salaries a n d expenses. E x e c u t i v e office 141,090. 49 .INDEPENDENT BUREAUS AND OFFICES. A l a s k a relief funds Alien P r o n e r t v Custodian A n t h r a c i t e a n d B i t u m i n o u s Coal . Cnmrhi.ssion A r l i n g t o n Memorial A m p h i t h e a t e r OfJTTi m i "5si on Arlington Memorial B r i d g e Commi.sjsinri . , _, B o a r d of Mediation a n d Conciliation B u r e a u of Efficiencv 3,316.92 38,292.74 .68 .68 3 5,083.85 15,091.14 15,091.14 18.92 147,831.24 729,169.33 6,475.29 .8 67.72 5,083.85 6,657.29 139,667.78 665,978.64 10,544.95 3 18,214.37 1,248. 69 . 6,638.37 8,164.46 63,180.69 . 4,069.66 Commission of F i n e A r t s 18,146.65 Committpfi on P u b l i c Information 1,248. 69 Council of N a t i o n a l Defense E m p l o y e e s ' C o m p e n s a t i o n Com305,243.92 2,689,005.88 2,994,249.80 mission 107,746.17 107,746.17 E u r o p e a n food relief Federal B o a r d for Vocational 12,461,619.52 6,106,370.27 M 8,567,989. 79 Education • 403.12 403.12 Federal F U P I D i s t r i b u t i o n 11,989.31 Ffldflral P n w p r OoniTni<^<^iori 25,003.32 36,992.53 2,343,314.02 2,112,720.42 4,456,034.44 FGderal ResGrve B o a r d 3,113.54 953,637.94 956,651;48 Fedei-al T r a d e Commission »Included under Department of the Interior in 1922. «Includes expenditures for printing and binding under allotments to the several departments. I n 1923 a separate appropriation was provided under each department and establishment for printing and binding. 8 Excess of repayments, deduct. «Includes $14,299,213.62 expenditures under "Vocational rehabilitation," now under Veterans' Bureau. 119 SECEETARY OF THE TREASURY. Comparison of expenditures, fiscal years 1923 and 1922, on the basis of warrants issued {net)—Continued. Increase, 1923. 1923 INDEPENDENT BUREAUS AND OFFICES—continued. General Accounting Office.. Housing Corporation. Interdepartmental Social Hygiene Board .• Interstate Commerce Conmiission. Interstate GovOTmnental Commission, Colorado River Miscellaneous items National Advisory (liommittee for Aeronautics National security and. defense, . Executive • Railroads : Railroad Labor Board Rock Creek and Potomac Parkway Coinmission. Smithsonian Institution and National Museum. State^ War, and Navy Department Bmldings ....". Temporary government for West Indian Islands United States Coal Commission U. S. Food and Fuel Administrations ; 1 U. S. Pilgrim Tercentenary Commission U. S. Shipping Board U. S. Tariff Commission........... U. S. Veterans' Bureau:. Salaries and expenses Medical and hospital services.. Military and naval compensation Military and naval insurance (appropriated fund) Military and naval family allowance.. Miscellaneous items Special funds— MiUtary and. naval insurance.... Miscellaneous special funds. Government Ufe insurance fund (trust fund)— Investments Expenses Vocational rehabiUtation Increase of compensation War Industries Board War Trade Board .S3,621,752.70 1,113,362.42 $2,637,374. - 1,387,240. 94,099.29 5,027,843.97 412,468. 5,391,271. 9,828.65 103,565.94 743,049. 209,054.06 175,034. 34,019.51 17,079,113.19 334,622.13 2,905. 1125,232,444. 142,311,557.21 $984,378.45 S273,877.64 318,368.87 363,427.58 9,828.65 639,483.09 220,515.84 220,408. 759,161.73 835,497. 3,171,776.64 • 76,335:81 1,532,168.78 .1,639,607. 452,195.56 452,19.5.56 343,440. 610.96 .1168.18 78,308,739.72 398,526.51 • 33,240,251.81 43,265,174.71 5,666,158. 38,007,874. 27,574,093.57 5,257,299.94 130,115,288.47 117,891,438.63 157,364.30 7,837,076.60 79,913.96 12,223,849.94 13,235,000.00 26,205.55 22,498.33 882,190. 36 < 68/960,294.15 251.23 75,645,628.49 529,196.00 27,052,937.11 6,459,097.70 140,005,210.29 2,946,022.77 22,563,224.84 2,882,151.63 164,510,136.09 2,134,908.70 139.34 146.48 4,489,712.27 3,576,946.07 589,342,737.90 434,184,996.71 • 213,013,006.60 Salaries and expenses Special funds: Water department Washington aqueduct. Miscellaneous special funds Tmst funds: Miscellaneous trust-fund deposits Washington redemption fund, Policemen sind firemen's relief fund ;........ ' Teachers' retirement f u n d Investments Current expenses Other trust funds '.. 22,409,728.17 •21,478,256.98 931,47L19 869,797.36 208,605.88 4,229.66 700,993.40 200,253.91 56,51L11 168,803.96 8,35L97 932,647.80 188,260.47 842,825.03 183,187.04 89,822.77 5,073.43 282,431.25 199,158.86 83,272.39 192,000.00 23,600.00 96,837.61 249,500.00 7,276.00 71,224.27 15,225.00 26,613.24 Total District of Columbia... 26,208,038.00 23,989,185.60 1,328,633.95 Total independent bureaas and offices , 343,440.00 779.14 157,354. 86,145,816. 318,612. 8 13,235,000.00 '2,905.24 '"67," 989." 78 402,611 1 107.74 (2) Decrease, 1923. 8 3. 22,602.'26 • • 855,984.81 6,685,334.34 528,944.77 811,114.07 24,504,925.80 139.34 146.48 57,856,265.41 DISTRICT OF COLUMBIA. 1 Excess of repayments, deduct. • 2 Included ui].der Office of Secretary of the Navy, p* 122. 8 See special fund balow. * S«6 note S. 62,281.56 57,600.00 109,78L65 120 REPORT ON T H E FINANCES. C o m p a r i s o n of expenditures, fiscal years 1923 a n d 1922, on the basis of w a r r a n t s issued (net)—Continued. 1923 1922 Increase, 1923. Decrease, 1923.- DEPARTMENT OP A G R I C U L T U R E . Salaries Printing and binding Miscellaneous Farmers' seed-grain loans Stimulating agriculture and distribution of products Office of Farm Management, expenses Bureau of Animal Industry, expenses Meat inspection, Bureau of Animal Industry Bureau of Plant Industry, expenses Forest Service, expenses Bureau of Chemistry, expenses Bureau of Soils, expenses Bureau of Entomology, expenses.. Bureau of Biological Survey, expenses *. Division of Publications, expenses. States Relations Service, expenses. Bureau of Public Roads, expenses. Bureau of Markets and Crop Estimates, expenses Bureau of Agricultural Economics. Federal Horticultural Board Procuring nitrate of soda Weather Bureau, expenses Lands for protection of watersheds and streams Road construction Increase of compensation Enforcement of insecticide . act, general'expenses Cooperative agricultural extension work '. Special funds: Cooperative w o r k , F o r e s t Service .. Payments to States and Territories from national forest funds ; Other special funds Total Department of Agriculture $6,299,066.63 67(^500.00 1,210,480.97 2 1,389,456.84 («) (^) $6,339,316.73 (') 881,212.47 859,358.52 2,248,815.36 578.08 578.08 295,937.29 295,937.29 4,992,408.69 5.087,261.28 3,743,229.86 3,079,222.26 5,071,208.59 909,740.14 275,261.27 1,584,618.96 3,713,692.37 2,519,598.79 4,615,979.83 920,948.42 298,465.38 1,652,137.49 720,656.52 119,723.13 2,981,544.16 436,732.02 750,583.97 126,725.53 3,104,651.73 433,098.24 (3) $40,250.20 $579,500.00 329.268.50 94,852.59 29,537.49 569,623.47 466,228.76 11,208.28 23,204.11 67,518.53 30,027.46 7,002.40 123,107.57 3,633.78 2,251,356.20 2,261,366.20 2,619,690.63 623,177. 62 8L61 1,466,706.62 728,601.03 24,070.10 : 1,665,831.63 765,942.87 79,240,808.61 3,020,733.22 830,785.27 95,084,057.74 3,236,838.34 *2,*6i9,'696."63" 105,323.41 23,988.49 99,124.91 64,842.40 15,843,249.13 216,105.12 113,103.05 105,095.40 8,007.65 5,810,349.45 5,474,049.50 336,299.95 1,228,374.20 1,525,993.61 297,619.41 846,442.41 218,477.05 1,023,083.81 535,254.04 176,641.40 316,776.99 126,667,723.6 143,984,462.69 4,920,790.23 22,337,529.32 DEPARTMENT OF COMMERCE. Office of the Secretary Bureau of Foreign and Domestic Commerce Bureau of the Census Steamboat Inspection Service Bureau of Navigation Bureau of Standards Bureau of Lighthouses Coast and Geodetic Survey Bureau of Fisheries Increase of compensation Miscellaneous 745,398.33 359.926.44 385,471.89 1,653,956.44 1,759,199.27 824,976.33 348,001.51 1,741,743.41 8,759.589.70 1,898,210.63 1,314,271.30 1,662,729.65 5,615.04 1,160,268.47 2,764,445.10 838,534.23 297,780.39 1,753,577.93 9,062,763.72 1,690,489.43 1,153,938.04 2,009.79L04 78,634.20 493,689.97 Total Department of Commerce.. 20,713,691.51 21,170,146.99 50,221.12 207,721.10 160,333,26 1,297,437.34 1,005,245.83 13,557.90 11,834.52 303,174.02 347,061.39 73,019.16 1,753,892.82 DEPARTMENT OF T H E INTERIOR. Interior civil: 1,153,194.11 SI, 538,494.40 385,300.29 Office of the Secretary.. 706,231.93 687,431.29 General Land Office..., 18,800.64 4,590,666.76 4,406,340.45 *i84,*325.*3i' Public Land Service.., 2 247.74 289,794.67 Indian Office , '296*642.'4i 1 Included under Government Printing Office In 1922. See p . 118. »Excess of repayments, deduct. 8 Included under Bureau of Agricultural - and ^g^^ - Economics. < See ^ Bureau of--Markets Crop Estimates, stimulating agriculture, etc., and Office of Farm Management. 6 Includes 1855,170.82 for printing and binding, 1923; Included under Government Printing Office in 1922, p . 118. 121 SECEETABY OF THE TBEASUKY. Comparison of expenditures, fiscal years 1923 and 1922, on the basis of warrants issued {net)—Continued. 1922 1923 Increase, 1923. Decrease, 1923. DEPARTMENT OF THE INTERIOR— continued. Interior civil—Continued. Bureau of PensionsSalaries and expenses Army pensions Navy pensions Fees of examining surgeons Civil-servic€> retirement and disability f u n d Investments Current expenses Construction and operation of railroads in Alaska Patent Office Bureau of Education.. Colleges for agriculture and mechanic arts Office of Architect, Capitol Reclamation ServiceGeneral expenses Reclamaltion fund Geological Survey Bureau of MinesGeneral expenses Adjustment and payment of mineral claims, act of Mar. 2, 1919 National parks Beneficiaries Territorial governments Increase of compensation. Miscellaneous • SI,749,010 04 254,604,888 56 8,997,369.88 $1,297,349 13 243,807,151 41 8,441,828 42 ."$461,660.91 10,797,737.15 565,641.46 546,610.91 327,867.87 217,743.04 8,091,417.48 7,673,830.71 9,283,138.54 6,179,618.39 1,494,212.32 4,472,592.85 2,149,884 14 702,358.04 4,358, m . 51 1,839,625.10 559,727.76 114,421.34 310,259.04 142,630.28 2,550,000.00 128,079.63 2,500,000.00 768,420.94 60,000.00 101,488.43 5,667,873.71 1,413,526.67 161,074.08 4,794,782.17. 1,680,337.01 763,09L64 1,845,486.98 1,686,473.63 169,013. 35 2,309,696.75 1,468,860.14 1,536,683.59 109,246.94 1,696,567.69 7,52L43 ' 696,566.14 1,531,280.43 1,843,342.61 32,980.62 1,875,528.06. 154,800.80 1,713,139.61 . 76,266.32 .$1,191,72L0$ 1730,341.31 49,686.65 i66,8i6.34 62,420.29 306,759.02 178,960.37 147,279.37 3,142,720.46 Total Interior civil . -... 314,428,237.28 300,156,615.78 17,415,34L96 Indian affairs: Current and (jontiiagent expenses Fulfilling treaty stipulations.. Miscellaneous supports , Interest on Indian trust funds. Support of Indian schools.. Miscellaneous expense Trust f u n d s . . . . . 2,433,129.22 687,407.31 620,648.02 891,554.46 4,384,715.81 3,320,238.66 32,905,069.82 1,074,656.92 678,47L70 636,986.07 1,139,292.67 4,44.7,88L09 3,926,242.18 26,596,982.65 1,358,672.30 6,308,087.27 45,142,763.30 38,500,413.08 7,666,659.67 1,024,309.35 359,671,000.58 338,656,028.86 25,082,001.53 4,167,029.81 Total Indian affairs , Total, Department of the Interior, including pensions and Indian affairs... 91,064.39 16,338.05 247,738.11 63,165.28 606,003.52 DEPARTMENT 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 Penal institutions Miscellaneous Total D'epartment Justice of a 1,513,664. 79 1,0.57,833. 73 455,831.06 2,087,608.99 734,477.01 1,768,955.10 766,473.66 318,653. 89 11,881,254.67 2,521,169.62 3,460,927.18 80,437.43 3,303,460.69 10,000.00 8,420,327.49 2,440,732.19 1,308,687. 23 1.392,647.39 ' 694,626.76 22,051,635.77 17,8.50,283. 55 6,226,662.86 (3) . 1,910,813.30 31,996.65 1,308 687.23' 684 6 ^ . 70 2,025,310.64 »Covers only expenditures made during 1923 under 1922 and prior year accounts. For 1923 expenditures see Legislative estabUshment, p . 118. 2 Includes printing and bindmg in 1923. . See note 2, p . 115. • Included m penal institutions. 122 REPORT OIST T H E FINANCES. Comparison o/expenditures, fiscal years 1923 and 1922, on the basis of warrants issued (net)—Continued. 1923 1922 Increase, 1923. Decrease, 1923 DEPARTMENT OF LABOR. Office of the Secretary Bureau of Labor Statistics Bureau of Immigration Bureau of NaturaUzation. Children's Bm'eau.... •. Women's B u r e a u : . . . . . . . Increase of compensation Miscellaneous ' , Total Department of Labor, 1S528,687.77 225,910.65 3,290,177.34 : 665,087.98 880,204.83 93,776.71 537,692.22 274,600.45 $354,942.97 233,208.71 3,658,199.33 • 690,033.08 . 467,741.43 75,422.27 534,937.57 216,117.03 S173,744.80 6,496,137.95 6,229,602.39 666,800.71 . 2,942,254.90 2.4,944,817.66 11,115,0.5L21 1,321,472.60 3,623,345.06 71,716.04 5,941,317.58 8,311,448.35 19,340,529.08 8,121,868.49 8,844,916.53 6,968,266.89 • 20,226,797.99 17,567,564,92 23,268,820.17 5:701,255.25 412,463.40 . 18,354.44 2,754.65 59,483.42 $7,298.06 368,021.99 24,945.10 400,265.15 NAVY DEPARTMENT i Office of the Secretary: . Pay, miscellaneous..': Other items ." Bureau of Navigation: .Outfits on .first enhstment TransjDortation Other items , Bureau of Engineering Bureau of. Construction and Re'.pair ... , Bureau of Ordnance: New batteries for ships of the Navy Ordnance and ordnance stores. Other items. , Bureau of Supplies and. Accounts: Pay.of the Navy Provisions Fuel and transportation Freight Maintenance Naval supply account fund.... Clothing and small stores special fund Navy allotments, 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 Scrapping of naval vessels , General account of advances , Miscellaneous 1,105,036.69 11,049,744.35 3 1,449,78L44 4,202,364.35 13,071,539.86 3 591,084.91 3,097,327.66 2,021,795.51 858,698.53 122,691,929.05 . 14,166,939.65 14,046,989.09 2,159,687.70 7,211,855.85 8 1,881,306.93 170,660,523.38 41,156,956.40 81,242,658.30 18,878,419.12 -10,035,594.87 32,694,2.33.17 47,968,694.33 26,990,016.75 67,195,669.21 16,718,731.42 2,823,739.02 34,675,540.10 3 3,752,607.61 1,810.05 602,575.91 6,961,734.16 16,297,341.03 16,817,157.46 2,256,807.19 42,159,900.61 1,118,152.88 289,577.65 6,024,312.03 19,896,203.79 13,611,862.96 2,457,827.66 22,109,248.59 8,046,779.16 1,097,164.33 56,922,370.27 9,507,092.22 3 43,060,47L46 505,164. 98 23,807,665.74 9,060,819.54 2,579,916.64 143,028,025.67 8 257,189,984.59 732,133.83 Total Navy Department... 322,532,908. 82 458,794,812.6 8,172,796.31 8,050,152.45 2,903,698.95 1,343,181.46 886,268.91 45,912,508.22 1,116,342.83 312,998.26 937,422.13 3,205,294.60 9,507,092.22 214,129,513.13 3,698,862.76 '."'261,'626.'36 1,698,417.15 1,014,040.38 1,482,752.31 86,106,655.30 226,968.85 233,058,846.76 369,320,750.56 POST OFFICE DEPARTMENT. Post Office Department proper... Deficiency in postal revenues Miscellaneous expenses Total Post Office Department. Federal control of telegraph and telephone systems <29,101.11 32,526,914.89 217,379.49 3,220,085.87 64,346,234.52 2.57,750.22 3,190,984.76 31,819,319.63 40,370.73 32,773,395.49 67,824,070.61 35,050,675.12 613.20 613.20 DEPARTMENT OF STATE. Department of State proper... Foreign intercourse Total Department of State. 1,349, .382.62 12,874,885.84 1,495,235.31 8,864,356.16 4,010,529.68 14,224,268.46 10,359,591.47 4,010,529.68 145,852.69 145,852.69 ' Includes printing and binding in 1923. See note 2, p. 118. 2 Includes $343,440 temporary government for West Indian Islands and $228,500 for printing and binding. For 1922 expenditures, see pp. 118, 119. » Excess of repayments, deduct. * Expenditures during 1923 under 1922 and prior year accounts; expenditures for 1923 payable front postal revenues. SECEETARY OF THE TREASURY. 123 Comparison of expenditures, fiscal years 1923 and 1922, on the basis of warrants issued (ne^)-^Coin tinned. 1923 1922 Increase, 1923. Decrease, 1923. TREASURY DEPARTMENT. $93,878.62 $24,019.08 $69,859.54 Office of t h e Secretary Office of t h e Chief Clerk a n d Super251,198.20 988,756.07 737,557.87 intendent Office of Commissioner of xVccounts 5,850.00 $10,650.00 16,400.00 a n d Deposits Division of Bookkeeping a n d W a r 11,016,980.76 18,452.60 1 1,035,433.36 rants ^' 15,427.73 16,810.36 1,382.63 Division of Deposits _. 5,210,650.41 7,904,508.46 2,693,858.05 P u b h c D e b t Service 46,709.14 47,980.05 1,270.91 Division of A p p o i n t m e n t s 361,845.02 « 731,786.22 369,941.20 Division of P r m t i n g a n d S t a t i o n e r y . 16,476.59 15,765.94 289.35 Division of Mail a n d Files 27,093.88 29,997.67 2,903.69 Office of Disbursing Clerk :___ C u s t o m s Ser^^ce: 3,262.64 60,829.70 64,092.34 • A d m i n i s t r a t i v e salaries Collecting t h e r e v e n u e from 10,876,122.74 346,758.82 11,221,881.56 custom'^s 134,048.96 245,656.84 111,607.88 Miscellaneous expenses • Refunds, d e b e n t u r e s , d r a w 36,588,098.60 6,738,222.99 29', 849,875.61 backs, etc 1,654.21 833.87 2,488.08 Special funds 27,137.60 115.325.20 142,462.80 B u r e a u of t h e B u d g e t 30,479.27 8 264,266.28 233; 787.01 Federal F a r m L o a n B u r e a u Office of Treasurer of t h e U n i t e d 1,629,428.86 58,086.19 • 1,571,342.67 States. ' Office of Comptroller 'of t h e Cur2,4.08,874.64 2,290,745.84 118,128.80 rency I n t e r n a l R e v e n u e Service: 661,245.05 13,493.43 674,738.48 A d m i n i s t r a t i v e salaries 33,175,784.19 1,836,328.46 35,012,112.65 Collecting t h e revenue Enforcement of narcotic a n d 1,847,820.72 7,224,417.93 9,072,238.65 p r o h i b i t i o n acts 37,800.21 •30,616.81 7,183.40 Miscellaneous expenses .... Refunds, d e b e n t u r e s , d r a w 51,095,516.07 76,646,515.65 127,742,031.72 b a c k s , etc ::. 352,11L92 183,064.55 535,176.47 Special funds 12,096,434. 57 1,634,269.86 10,462,164.71 Coast G u a r d 55,846.16 55,913.86 Coast G u a r d a l l o t m e n t s , t r u s t fund 67.70 B u r e a u of EngraAing a n d P r i n t i n g : 1,352.46 • 225,326.91 223,974,45 A d n i i n i s t r a t i v e salaries 70,899.91 2,252,288.72 C o m p e n s a t i o n of e m p l o y e e s . . . 2,181,388.81 Materials a n d miscellaneous 328,401.44 1,353,234.84 expenses 1,024,833.40 164,148.79 1,793,73L90 P l a t e iprinting 1,639,583.11 396,821.32 10,798.97 Secret Service 407,620. 29 P u b h c H e a l t h Servrice: A d m i n i s t r a t i v e salaries a n d 311,197.70 2,283,88L15 miscellaneous i t e m s .1,972,683.45 2,783,614.46 3,044,656.61 H o s p i t a l construction 261,142.15 22,130,916.45 27,299,595.84 Medical a n d hospital s e r v i c e s , . 5,168,679.39 P a y of commissioned officers, p h a r m a c i s t s , acting assista n t surgeons, a n d other employees 15,010.28 2,072,110.53 2,087,120.81 • P a y of personnel a n d m a i n t e 4,264,185.34 n a n c e of hospi.tals 503,988.61 4,768,173.95 98,770.16 1,183,826.99 Mints a n d assay offices 1,282,597.15 B u r e a u of W a r R i s i : Insurance— (now U . S. V e t e r a n s ' B u r e a u ) : 31,886.67 31,886.67 Salaries a n d expenses 1,438,906.29 Medical a n d hospital s e r v i c e s . . 1,438,906. 29 M i h t a r y a n d n a v a l compensa8,137,465.39 tion 8,137,465.39 Military a n d n a v a l family 271,506.37 271,506.37 aUowance 2.26 Miscellaneous i t e m s . 2.25 Special f u n d s Military a n d n a v a l insur7,746,754.10 ance 7,746,754.10 Miscellaneous special 66,486. 43 funds 6 56,486.43 Tru^t f u n d G o v e r n m e n t hf e i n s u r a n c e 2,015,094.62 2,015,094.52 fund ( i n v e s t m e n t s ) G o v e r n m e n t Ufe i n s u r a n c e 400,938.20 fund (expenses) 400,938.20 1 I n c l u d e s $507,635.88 for 1923, a n d $536,057.01 for 1922, charges on sUver doUar buUion sold a n d $4,685.91 for 1923, loss on silver dollars m e l t e d or b r o k e n u p , u n d e r P i t t m a n A c t . 2 I n c l u d e s $362,114.87 for p r i n t i n g a n d b i n d i n g , 1923, carried u n d e r G o v e r n m e n t P r i n t i n g Office I n 1922. See p..118 ' 8 E x c l u s i v e of $12,000,000 for 1923 u n d e r subscriptions t o capital stock. Federal i n t e r m e d i a t e credit b a n k s , agricultural credits act of 1923; see special a c c o u n t s , p . 126. * Figures for t h e fiscal year 1922 represent e x p e n d i t u r e s prior t o A u g u s t 9, 1921. See U . S. V e t e r a n s ' B u r e a u for e x p e n d i t u r e s s u b s e q u e n t t o t h a t d a t e , p . 119. ^ Excess of r e p a y m e n t s , d e d u c t (<) 62166—FI 1923 10 124 REPORT ON T H E FINANCES. Comparison of expenditures, fiscal years 1923 and 1922, on the basis of warrants issued {net)—Continued. 1922 1923 Increase, 1923. Decrease, 1923. TREASURY DEPARTMENT—COntd. Pubhc buildings: Office of Supervising Architect Pubhc buildings, construction and rent. Hospitals Quarantine stations Repairs, equipment, and general expenses Operating expenses American Printing House for the BUnd Increase of compensation Miscellaneous Total Treasury Department. $205,642.13 $201,701. 31 $3,940.82 810,207.65 J6,719,0OL99 563,622.77 2,123,192.67 5 7,831,814.15 173,757.14 389,765.63 2,927,118.37 6,697,238.16 3,622,927.23 7,123,643.52 695,808.86 526,405.36 50,000.00 10,087,000.30 a 1,.522,549. 82 50,000.00 12,080,284.14 8 478,162.89 1,993,283.84 1,044,386.93 287,203,683.52 263,407,60.5.46 $1,312,985.02 1,112,812.16 85,231,053.48 61,434,975.42 WAR DEPARTMENT. Military activities: 326,558.09 4 793,158.23 Office of the Secretary of W a r . . 466,600.14 259,020.36 255,589.37 General Staff Corps 3,430.99 Adjutant General's DepartmentVocational training of 294,302.49 455,596.81 749,899.30 soldiers 1,569,808.69 240,38L03 1,810,189.72 Other 3,476,459.06 3,148,999.79 Organized Reserves 327,459.27 20,746.34 18,310.46 Office of Inspector General 2,434.88 Office of Judge Advocate Gen58,424.37 49,577.63 eral 8,846.74 2,475,351.76 8 12,597,672.16 Army account of advances 16,073,023.91 Finance Department81,787,461.46 132,479,809.66 »50,692,348.10 Pay of tne Army 180,236.34 1,016,397.60 835,161.16 Mileage of the Army. 7,013,292.70 8,271,123.15 Increase of compensation«. 1,267,830.45 1,277,529.64 Finance Service 1,277,629.64 V) ***.*67,*867.'84 545,336.46 Miscellaneous items ... 603,143.30 Quartermaster Corps18,696.098.22 23,259,588.97 4,663,490.75 Army transportation 6,907,380.34 5,606,035.23 Barracks and quarters 1,301,345.11 4,229,918.16 6,547,016.36 Clothing and equipage.... 2,317,098.14 Construction and repair of 790,712.14 61,559.99 729,152.15 hospitals 117,742,077.62 118,066,698.74 324,621.12 General appropriations— Incidental expenses of the 4,930,846.32 741,587.65 4,189,268.77 Army Inland and port storage 4,125,800.23 4,864,996.95 739,196.72 and shipping facilities... Regular supplies of the 11,162,697.02 1,043,579.34 12,206,276.36 Army Roads, walks, wharves, 2,107,703.21 623,491.64 1,484,21L57 and drainage 14,345,209.'68 15,437,863.01 Subsistence of the A r m y . . 1,092,663.43 SuppUes, services, and 1,439,599.62 1,031,652.59 8 407,947.03 transportation Water and sewers at mili140,293.99 1,759,190.79 1,618,898.80 tary posts 756,329.80 481,031.63 8 275,298.17 Miscellaneous items 2,276,263.35 2,122,921.04 153,342.31 Signal Corps 4,607,363.62 19,173,63L71 23,680,886.33 Air Service 103,878.96 1,138,608.72 1,242,487.68 Medical Department 14,579.58 63,125.04 77,704.62 Bureau of insular Afi:airs j 2,340,260.97 11,766,485.60 9,416,224.63 Corps of Engineers I Fortifications, etc., Panama 896,327.45 63,861.76 J Canal 950,189.20 * Includes $6,127,232.61 for 1923 under hospital facihties, etc., for war patients. 2 Includes $7,757,791.96 for 1922 under hospital facilties, etc., for war patients. 8 Excess of repayments, deduct. . * Includes $216,953.32 for printing and binding, 1923, carried under Government Printing Office in 1922. See p. 118. 6 The sum of $95,176,610.59 was repaid during the fiscal year 1922 to the appropriation for 1919, thereby reducing the figures for 1922. * Exclusive of increase of compensation under rivers and harbors and National Homes for Disabled Volunteer Soldiers. 7 Included under " Pay of the Army" in 1922. / 125 SECEETARY OF THE TREASURY. Comparison of expenditures, fiscal years 1923 and 1922, on the basis of warrants issued {net)—Continued. 1923 1922 Increase, 1923. Decrease, 1923. WAR DEPARTMENT—continued. Military activities—Continued. Ordnance DepartmentOrdnance service.. Ordnance stores and supplies ATTiTnnnitinn . . . .,.,..., Automatic rifles and manufacture of arms Nitrate plants... Armament of fortifications. Arsenals.. Ordnance storage facihties. Miscellaneous items Chemical Warfare Service National Boatd for Promotion of Rifle Practice Chief of Infantry Chief of Cavalry Chief of Field Artillery Chief of Coast Artillery Mihtia Bureau .. Mihtary Academy Total mihtary actl^aties Nonmihtary activities: National cemeteriesDisposition of remains of officers, soldiers, and civil employees Miscellaneous items Medical DepartmentMedical and hospital services Miscellaneous items Pubhc buildings and grounds under Chief of Engineers Miscellaneous items under Corps of Engineers Rivers and harborsImproving rivers Improving harbors. Special funds for rivers and harbors Inland and coastwise waterways service Monuments National mihtary parks National homes for disabled volunteer soldiersMedical and hospital services Care and maintenance War claims and relief acts . . . Trust fundsPay of the Army deposit fund Soldiers' Home permanent fund Preservation of birthplace of Abraham Lincoln Miscellaneous nonmihtary activities Total nonmihtary activities (exclusive of Panama Canal) Panama Canal, operation and maintenance Total War Department $1,386,793.02 $2,326,676.60 331,845.90 988,724.09 249,201.35 3,826,221.62 766,313.50 885,619.40 2,167,926.98 1,284,425.36 77, .562.07 2,538,183.59 ,.935,139.86 1,946,040.12 1,035.788.26 5 388,075.98 1,755,022.63 802,880.86 228,277.97 2,367,332.92 50,668.74 55,752.54 14,902.61 31,563.67 257,064.10 24,789,010.47 2,075,718.89 146,815.04 71,051.46 6,973.02 23,224.13 540,133. 60 20,867,054.07 2,445,842.29 284,112,899.86 329,571,665.99 1,076,828. 79 366,988. 62 5,612,671.37 390,613.16 2,296,466.93 94,753.03 2,122,693.66 68,372.30 $9^10,782.48 $82,644.65 . 2,309,905.62 2,837,497.43 1,179,726.62 150,268.86 3,220,150.00 470,597.27 725,318.78 1,422,193.06 • 7,929.59 8,339.54 3,921,956.40 112,439,844.84 96,146.30 16 298.92 283 069.50 370,123.40 167,898,610.97 4,435,842.58 24,524.64 173,773.37 36,380.73 203,461.02 842,906.79 639 444. 77 1,126,794.17 1,681,532.61 454,738.34 46,677,286.93 1,946,103.21 37,079,036.62 2,881,657.37 2,769,833.25 3,301,733.37 631,900.12 994,566.86 29,289.87 133,154.32 2,515,451.82 22,439.80 151, 627.12 1,620,884.96 1,177, 785.90 5,473,541.91 2,289,834.40 2,053,435.76 8,776,588.69 848,549.85 1,441,284.55 80,751. 21 9,698,250.41 . 935,664.16 6,850.07 18 472. 80 875,649.86 3,303,046.78 88,185. 86 7,434.65 834,364.59 948,515. 51 1,229. 69 2,500.00 Ji, 270.31 409,983.77 598,089.08 188,106.31 67,989,453.02 69,696,748. 23 114,160.92 11,337,290.34 3,620,503.37 2,791,03.5.40 829,467.97 355,722,856.25 402,058,449.62 124,606,603.15 13,043,686.55 170,942,196.52 126 REPORT ON T H E FINANCES. Comparison of expenditures, fiscal years 1923 and 1922, on the basis of warrants, issued/ (net)—Continued. 1923 1922 Increase, 1923. Decrease, 1923. SPECIAL ACCOUNTS. S u b s c r i p t i o n s t o c a p i t a l stock of Federal intermediate credit banks $12,000,000.00 P u r c h a s e of obhgations of foreign Governments P u r c h a s e of farm loan b o n d s . . . . _ 2 1,055,088,486.44 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 3 403,916.27 $717,834.36 1175,133.04 989,485,409.93 3142,311.51 . 175,133.04 65,603,076.51 261,604.76 1,067,492,402.71 990,170,422.76 78,039,814.31 717,834.36 3,244,684,072.20 3,195,622,729.96 786,347,551.99 737,286,209.75 3,244,684,072.20 3,195, G16,644'. 55 786,347,551.99 737,280,124.34. 6,085.41 68,202.86 3,2M, 690,1.57. 61 3,195,684,847.41 D e d u c t r e p a y m e n t s received in fiscal year b u t n o t covered b y warrant : A d d r e p a y m e n t s covered b y warr 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 o r d i n a r y w a r r a n t e x penditures. . . A d j u s t m e n t s to t h e general fund: A d d credits against e x p e n d i t u r e s [see n o t e ] : Proceeds of railroad securities o w n e d b y t h e Government Miscellaneous c r e d i t s Rehef of J o h n B u r k e , former Treasurer of t h e U n i t e d S t a t e s , act J u n e 3,1922 Disbursing officers' credits, etc., a t beginning of fiscal year U n p a i d w a r r a n t s a t beginning of fiscal year $12,000,000.00 $717,834.36 0 6,085.41 . 6,085.41 62,117.45 737,342,241.79 786,347,551.99 99,119,987.01 67,236,748.72 26,934.35 26,934.35 624,470,588.44 769,363,200. .53 1,965,257.07 21,584,162.21 4,037,509,673.20 3,986,632,210.15 786,374,486.34 742,652,367.90 624,470,588.44 118,181,779.46 1,606,057.22 1,965,2.57.07 744,258,425.12 626,435,845.51 118,181,779.46 359,199.85 3,293,251,248.08 3,360,196,364.64 668,192,705.88 901,494,559.17 First L i b e r t y loan, a t 3^ per c e n t . . 3,000.00 F i r s t L i b e r t y loan, converted a t 4 1,200.00 per c e n t . _ _ F i r s t L i b e r t y loan, c o n v e r t e d a t 4^ 75,350.00 per cent 22,100.00 Second L i b e r t y loan Second L i b e r t y loan, converted a t 111,538,150.00 4i per cent 66,000,750.00 Third-ILiberty loan F o u r t h L i b e r t y loan 16,818,100.00 1,911,442,400.00 Victory L i b e r t y loan 143,339,500.00 T r e a s u r y notes (various r a t e s ) . . . T r e a s u r y b o n d s 1947-1952 8,000.00 72,200.00 Deduct— Disbursing officers' credi t s , etc., a t close of fiscal year... U n p a i d w a r r a n t s a t close of fiscal year T o t a l o r d i n a r y cash e x p e n d i t u r e s on basis of daily Treasury statem e n t s , revised < 144,892.612.09 19,618,905.14 901,853,759.02 359,199.85 PUBLIC D E B T . 69,200.00 300.00 900.00 342,550.00 650.00 21,450.00 5,938,850.00 137,772,300.00 9,476,600.00 1,907,986,250.00 267,200.00 105,599,300.00 71,771,550.00 7,341,500.00 3,456,150.00 143,339,500.00 8,000.00 1 ^ 1 Excess of repayments, deduct, 2 Includes $97,545,828.38 accrued discount on war-savings certificates of the series of 1918. 3 Oft'set by .$816,667.85 in 1923, and $3,439,260.22 in 1922, discount on bonds, notes, and certificates pur^chased and covered into the Treasury as miscellaneous receipts, p. 114. < Exclusive of pubhc debt retirements chargeable against ordinary receipts during 1923 of $402,957,691.10 and during 1922 of $422,352,950,which amounts are included in this table under public debt expenditures. 3^ilNoTE.—Items of this character rejjresent cash receipts heretofore credited against expenditures. In . the fiscal year 1923, the amounts are included in the totals of both receipts and expenditures, to adjust the figures to an actual receipt and actual expenditure basis [see also similar items included under receipts, p . 117]. 127 SECBBTAHY OF THE TREASUBY. Comparison of expenditures, fiscal years 1923 and 1922, on the basis of warrants issued (net)—Continued. . 1922 1923 Increase, 1923. Decrease, 1923, PUBLIC DEBT—contlnucd. .$200,000.00 P a n a m a Canal loan, 1911. L o a n of 1908-1918 29,720.00 Certificates of i n d e b t e d n e s s , vari5,096,403,000.00 ous issues T r e a s u r y (war) savings securities. . 543,807,539.87 B a n k - n o t e fund 74,414,564.00 F u n d e d loan of 1907 950.00 Miscellaneous r e d e m p t i o n s 15,436.82 T o t a l public d e b t e x p e n d i tures - 7,964,119,760.69 $200,000.00 $50,620.00 4,775,873,950.00 85,415,860.52 107,251,870.00 6,200.00 1,262.40 $20,900.00 320,529,050.00 458,391,-679.35 32,837,306.00 5,250.00 14,174.42 7,030,189,462.92 1,038,901,703.77 104,971,406.00 T o t a l cash e x p e n d i t u r e s , exclusive of P o s t a l Service p a y a b l e from postal revenues 11,257,371,008.77 10,390,385,827. 56 1,707,094,410.65 1,006,465,965.17 P o s t a l Service, p a y a b l e from postal 484,853,540.71 revenues _ _ _ _ __ 47,974,384.38 532,827,925.09 Total e x p e n d i t u r e s , including Postal Service p a y a b l e from p o s t a l r e v e n u e s 11,790,198,933.86 10,876,239,368.27 1,755,068,795.03 1,006,465,965.17 Estimates for 1924 and 1925 compared with actual receipts and expenditures for 1923. The following table shows estimates of receipts and expenditures for the fiscal years 1924 and 1925 compared wdth actual receipts and expenditures (warrant basis) for the fiscal year 1923: Comparison of estimated receipts, fis,cal years 1924 and 1925, with actual receipts for the fiscal year 1923 on the basis of warrants issued {net). Estimated, 1925. Estimated, 1924. Ordinary receipts: Customs Internal r e v e n u e Income and profits t a x . Miscellaneous taxes Miscellaneous: Interest, premium, and discountInterest on loans to foreign Governments.. Interest on miscellaneous obhgations of foreign Governments Interest on misceUaneous obligations Interest on loans to railroads Interest on farm-loan bonds Interest on pubhc deposits Dividend on capital stock Discount on bonds and notes purchased.. Gain by exchange Sales of Government p r o p e r t y Sale of war supplies Miscellaneous Government property Public-domain receiptsSale of public lands Receipts under mineral leasing acts Forest reserve fund Other..... Federal reserve bank franchise tax Profits on coinage, buhion deposits, etc Revenue-producing enterprises— Funds deposited for construction loans under section 11, merchant marine act of Mar. 9, 1920. Tolls, profits, etc., Panama Canal Other 1 Deducted from expenditures in 1923. Actual, 1923. $493,000,000.00 $570,000,000.00 $562,189,038.87 1,800,000,000.00 927,585,000.00 1,850,000,000.00 933,585,000.00 1,691,089,534.66 935,699,604.36 137,232,976.00 138,744,217.00 179,101,699.15 21,743,787.00 1,719,500.00 11,133,000.00 2,907,325.00 3,938,800.00 . 21,743,787.00 2,177,500.00 11,500,000.00 4,022,325.00 3,938,800.00 700,000.00 22,230,548.71 1,999,264.96 40,000.00 40,000.00 5.423.694.68 5.450.769.69 816,667.85 6,109,449.60 16,440,000.00 13,472,241.00 33,110,000.00 24,508,092.00 77,931,236.95 19,008,038.18 400,000.00 11,000,000.00 6,421,000.00 2,833,249.00 6,000,000.00 5,000,000.00 500,000.00 10,500,000.00 5,910,000.00 2,773,819.00 6,000,000.00 11,000,000.00 656,508.40 8,825,655.605,446,162.72 1,491,476.34 10,850,604.72 25,865,170.45 18,834,000.00 3,085,600.00 18,834,000.00 3,094,000-00 50,000,000. oa 17,686,963.95 1.978.939.10 128 REPORT ON T H E EINANCES. Comparison of estimated receipts, fiscal years 1924 and 1925, with actual receipts for the fiscal year 1923 on the basis of warrants issued {net)—Continued. Estimated, 1925. Estimated, 1924. Miscellaneous—Continued. Rent of pubUc buildings and grounds Fees, fines, penalties, forfeitures, etc.— Fees on letters patent Consular and passport fees Tax circulation on national banks Customs Service Navy fines and forfeitures Naturahzation fees Immigration head tax Judicial Other Gifts and contributions— For river and harbor improvements For Forest Service cooperative work Other : Repayments of InvestmentsPrincipal of loans made to foreign Governments Liquidation of capital stock, Federal land banks Repayment of principal of loans to railroads . . . . Sale of farm-loan bonds Return of advances made to reclamation fund Principal of loans made by United States Housing Corporation Other . Assessments and reimbursementsSalaries and expenses, national-bank exaTniTiex!? . . . .,. , . . . . Expenses of redeeming national currency. Expenses of Federal reserve notes Assessments on Federalreserve banks for salaries and expenses, Federal Reserve Board Miscellaneous accounts against foreign govenrments Work done by individuals, corporations, et al Other District of ColumbiaRevenues of the District of ColumbiaDistrict.of Columbia share (excludiiig trust funds) . . United States share Miscellaneous unclassified receipts Trust f u n d s Government life-insurance fund— Premium on converted insurance Interest Civil service retirement and disabihty fund Soldiers' TToTnepfirmanoTit fund . . . . Army, Navy, and Marine Corps deposit funds • : Indian m o n e y s Proceeds of labor Proceeds of sale of Indian lands and timbftr.- ,, , . , ., Other. Miscellaneous trust funds District of Columbia trust funds Total miscellaneous receipts, including Panama Canal and sales of publiclands. Adjustment to the general fund: Increase in uncovered moneys on June 30, 1923, over such amount on .Tune 30,1922 Add receipts credited direct to appropria- Actual, 1923. $694,884.00 $701,884.00 $940,766. 46 2,702,440.00 7,900,000.00 4,143,548.00 1,000,000.00 1,000,000.00 750,000.00 4,000,000.00 16,976,000.00 4,404,912.00 2,636,020.00 7,900,000.00 4,143,548.00 1,000,000.00 1,000,000.00 735,000.00 4,000,000.00 16,876,000.00 4,556,459.00 3,031,276.53 7,702,265.66 4,304,331.82 621,895.65 2,925,278.82 654,562.50 4,151,694.68 6,830,844.20 3,135,216.89 1,800,000.00 1,500,000.00 3,007,755. 22 1,514,772.16 322,371.67 23,045,000.00 60,533,000.00 31,656,907.64 750,000.00 2,556,775.00 2,210,000.00 25,000,000.00 6,000,000.00 25,000,000.00 36,750,000.00 1,000,000.00 1,000,000.00 1,000,000.00 985,000.00 515,000.00 1,561,976.93 63,822.30 2,000,000. 00 764,521.00 1,700,000.00 2,000,000.00 789,798.00 1,700,000.00 2,145,855.91 968,516.67 600,000.00. 2,215,228.62 700,000.00 , 344,663.88 296,000.00 2,531,110.00 298,500.00 2,504,148.00 1,633,102.62 4,511,715.84 17,706,500.00 1,000,000.00 384,800.00 17,106,500.00 1,000,000.00 399,200.00 16,930,989.18 682,966.05 555,970.38 44,450,835.00 6,519,861.00 37,708,737.00 4, 7.32,133.00 30,710,055.71 3,129,702.63 1,466,250.00 690,000.00 1,289,205.00 1,042,781.58 1,009,262.18 1,325,000.00 28,000,000.00 • 690,000.00 1,325,000.00 28,000,000.00 820,435.03 34,124,621.91 420,040.00 2,110,000.00 1,500,000.00 407,040.00 2,000,000.00 1,508,110.22 24,099.49 289,013.87 . 1,789,097.56 473,177,078.00 3,693,762,078.00 541,092,712.00 3,894,677,712.00 658,041,542.31 3,847,019,620.10 1,500,000.00 26,062.67 • tions—1 Proceeds of raih'oad securities owned by the Govern ment. Receipts from misceUaneous sources Total ordinary receipts, exclusive of postal revenues 99,119,987.01 67,236,748.72 3,693,762,078.00 3,894,677,712.00 4,013,402,418.50 1 Items of this character represent cash receipts which have heretofore been credited against expendituresIn the fiscal year 1923 the amounts are included in the totals of both receipts and expenditures, to adjust the figures to an actual receipt and actual expenditure basis (see also pp. 117,126). SECRETARY OF THE TREASURY. 129 Comparison of estimated expenditures,fiscalyears 1924 cmd 1925, with actual expenditures for the fiscal year 1923, on basis of daily Treasury statements, revised. E s t i m a t e d , 1925. E s t i m a t e d , 1924, General e x p e n d i t u r e s : Legislative e s t a b l i s h m e n t Executive proper State Department Treasury Department War Department D e p a r t m e n t of J u s t i c e P o s t Office D e p a r t m e n t .' Navy Department Interior 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 , U m t e d States V e t e r a n s ' B u r e a u . -• O t h e r i n d e p e n d e n t offices a n d c o m m i s s i o n s . . District of Columbia Total D e d u c t unclassified i t e m s . . Total , Interest on public d e b t R e f u n d s of receipts: Customs Internal revenue P o s t a l deficiency. P a n a m a Canal O p e r a t i o n s i n special accounts: Railroads W a r F i n a n c e Corporation , Shipping Board A h e n p r o p e r t y funds Sugar E q u a U z a t i o n B o a r d C a p i t a l stock. F e d e r a l i n t e r m e d i a t e credit b a n k s . , L o a n s t o railroads I n v e s t m e n t of t r u s t funds: G o v e r n m e n t life i n s u r a n c e fund Civil service r e t i r e m e n t fund D i s t r i c t of Columbia teachers' r e t i r e m e n t fund. Total ordinary.. P u b h c d e b t r e t i r e m e n t s chargeable against ordin a r y receipts: Smking limd P u r c h a s e s from foreign r e p a y m e n t s Received from foreign G o v e r n m e n t s u n d e r debt settlements Received for e s t a t e t a x e s P u r c h a s e s from franchise t a x receipts ( F e d e r a l reserve b a n k s ) Forfeitures, gifts, e t c Total T o t a l e x p e n d i t u r e s chargeable a g a m s t ordinary receipts »Excess of credits, d e d u c t . A c t u a l , 1923. $13, 595, 448.00 415,667.00 14, 988,446.00 117,271,090.00 307,260,650.00 21,451,960.00 $13,961,066.00 416,894.00 16,054,963.00 126,622,366.00 307,600,390.00 19,322,200.00 311,020,050.00 310,507,699.00 144,784,200.00 23,710,000.00 6,107, 076.00 403,369,450.00 24,825,238.00 26,896,798.00 341,873,550.00 321,283,333.00 148,687,700. 00 21,692,000.00 7,747,744.00 451,053,424.00 25,718,016.00 26,105,308.00 1,726,203, 772.00 1,828,138,954.00 1,939,477,321.73 1,977,464.72 1,726,203,772.00 890,000,000.00 1,828,138,954.00 940,000,000.00 1,937,499,867.01 1,055,088,486.44 20,010,000.00 91,530,000.00 2,085,184.00 6,930,000.00 28,515,000.00 106,875,000.00 24,679,673.00 6,584,000.00 28,736,711.58 125,279,043.35 32,526,914.89 4,316,961.30 25,852,817.00 68,486,299.00 160,000,000.00 54,635,167.00 $14,165, 243.89 349, 380.15 15,463, 276. 30 133,016, 859.60 392,733, 634.86 23,521, 485.79 146, 942.46 333,201, 362.31 354, 623, 058.88 128,745, 677.33 21,783, 508.71 7,241, 466.73 461,719, 433.83 28,712, 285.42 24, 053, 705.47 4,000,000.00 8,300,000.00 6,000,000.00 10(1,618,067.12 1109,436,238.13 57,023,838.18 11,365,554.16 2,482,476.33 12,000.000.00 13,526,587.00 41,970,696.00 7,000,000.00 220,000.00 34,440,870.00 6,500,000.00 215,000.00 26,672,161.78 8,091,417.48 190.517.91 2,815,802,469.00 3,053,069,963.00 310,000,000.00 297,144,300.00 37,854,500.00 28<t,018,800.00 32,140,000.00 160,277,975.00 6,000,000.00 160,969,325.00 10,000,000.00 68,752,950.00 6,675,750.00 6,000.000.00 6,000,000,00 10,815,300.00 554,891.10 482,277,975.00 511,968,126.00 402,957,691.10 3,298,080,444.00 3,565,038,088.00 3,696,208,939.18 3,293,251,24S.( 130 REPORT ON T H E FINANCES. Estimated receipts for the fiscal years 1924 and 1925. Source of revenue. Customs. Internal revenue (under revenue act approved Nov. 23,1921): Income t a x Individual Corporation Profits tax Back taxes Total income and profits tax Miscellaneous internal revenue (see details below). * Total internal revenue. Miscellaneous internal revenueEstate tax Telegraph and telephone : Alcohohc spirits, etc Beverages (nonalcohoUc)— Cereal beverages Fruit juices and soft drinks Fountain sirups Carb onic acid gas , Tobacco and tobacco manufactures , Admissions and dues , Automobiles, trucks, parts, etc Cameras and lenses Photographic films and plates , Candy Firearms, shells, etc Huntmg 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, vahses, etc 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. Miscellaneous ordinary receipts by departments and Government estabhshments: Legislative Executive Office Independent offices Department of Agriculture Department of Commerce . Department of the Interior Department of Justice Department of Labor Navy Department Post Office Department Department of State Treasury Department War Department ^ Panama Canal '. District of Columbia— .District of Columbia revenues, taxes, etc United States revenues from District of Columbia sources. Total miscellaneous ordinary receipts.. Total estimated ordinary receipts Fiscal year 1925, Fiscal year 1924. $493,000,000 $570,000,000. 825,000,000 775,000,000 825,000,000775,000,000 200,000,000 250,000,000 1,800,000,000 927,585,000 1,850,000,000 933,585,000 2,727,585,000 . 2,783,685,000- 110,000,000 33,000,000 27,000,000 110,000,000 33,000,000 27,000,000 3,700,000 820,000 4,300,000 1,500,000 310,000,000 82,000,000 150,000,000 800,000 800,000 11,000,000 4,350,000 25,000 240,000 160,000 300,000 250,000 750,000 1,350,000 20,750,000 85,000,000 65,000,000 2,500,000 3,700,000 820,000 4,300,000 1,500,000 310,000,000' 82,000,000 156,000,000 800,000' 800,000 11,000,000 4,350,000 25,000 240,000 150,000 300,000 250,000^ 750,000 1,350,000 20,750,000 85,000,000 65,000, OOO 2,500,000 12,000,000 12,000,000 927,586,000 933,585,000 . 483,500 449,300 68,313,744 8,948,200 2,405,100 50,959,571 17,320,900 5,106,850 4,614,000 62,686,825 8,148,200' 2,328,550 50,516,766 17,170,900 5,191,850 10,446,000 8,046,000 236,989,923 30,163,790 19,009,000 8,046,000 283,244,292: 53,748,52S 19,009,000 19,816,500 1,000,000 19,106,500 1,000,000 473,177,078 541,092,712 3,693,762,078 3,894,677,712 131 SECRETARY OF T H E TREASURY. Estimates for 1925 and appropriations for 1924. A P P R O P R I A T I O N S FOR 1924. [Nov. 1, 1922-Nov. 1,1923.] Appropriations made for the .fiscal year 1924 and for prior years during the third and fourth sessions of the Sixty-seventh Congress, including revised estimated permanent and indefinite appropriations and appropriations for the Postal Service payable from postal revenues $4,094, 963, 086. 37 Deduct: Postal Service for 1924 payable from the postal revenues $585, 210, 239. 50 Postal deficiencies of prior years, payable from postal revenues 11, 699,185. 74 Deficiencies and supplements for prior years. 219, 618, 692'. 51 816,528,117.75 Total appropriations for 1924, 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, 278, 434, 968. 62 Comparison of the estimates for 1925 with the appropriations for 1924 shows a decrease in the 1925 estimates of $260,365,022.56, as exhibited in the table following, without, however, including in the figures for 1924 the railroad guaranty, repayments under revolving fund appropriations, repayments to appropriations, and appropriations of unexpended balances, the ef£ect, of which on the appropriations for that year is shown on pages 47 to 49 of the report for the fiscal year 1920. Estimates of appropriations for 1925 compared ivith appropriations for 1924. [ E x c l u d i n g Postal Service p a y a b l e from t h e postal revenues.] Legislative E x e c u t i v e Office I n d e p e n d e n t offices: Alien Property Custodian American Battle Monument Commission.. B u r e a u of Efficiency Civil Service C o m m i s s i o n C o m m i s s i o n of F i n e A r t s E m p l o y e e s C o m p e n s a t i o n Commission F e d e r a l B o a r d for V o c a t i o n a l E d u c a t i o n . . . Federal Power Commission Federal T r a d e Commission G e n e r a l A c c o u n t i n g Office G r a n t M e m o r i a l Commission H o u s i n g Corporation I n t e r s t a t e Commerce Commission L i n c o l n M e m o r i a l Commission N a t i o n a l A d v i s o r y C o m m i t t e e for A e r o n a u t i c s P e r r y ' s V i c t o r y M e m o r i a l Commission Railroad Labor Board Smithsonian Institution 1925 estimates, including permanent annual. 1924 appropriations, i n c l u d i n g revised permanent annual. $13,783,836.25 397,847. 50 $14,416,91L 60 445,770.00 225,000.00 554,280.00 156,150.00 949,116.00 5,350.00 2,656,260.00 6,380,000.00 13,30L79 950,000.00 3,724,612.00 281,200.00 808,100.00 4,262,284.00 440,000.00 99; 185.00 322, 200.00 824,551. 66 152, 200.00 990, 895.00 6, 480.00 2,450, 500.00 6,427, 000.00 48, 495.74 1,010, 000.00 3,870, 801.00 1, 800.00 920, 450.00 5,203, 860.00 3, 600.00 307, 000.00 340,000.00 771,144.00 Increase, 1925 estimates over 1924 appropriations ( + ) , decrease (—). -!1FG33,075.35 -47,922.50 - 5 6 , 200.00 -1-554, 280.00 +3, 950.00 - 4 1 , 779.00 - 1 , 130.00 -f205, 760.00 - 4 7 , 000.00 - 3 5 , 193.95 - 6 0 , 000.00 - 1 4 6 , 189.00 - 1 , 800.00 - 1 1 2 , 350.00 - 9 4 1 , 576.00 - 3 , 600.00 -1-133, 000.00. + 9 9 , 185.00 - 1 7 , 800.00 + 5 3 , 407. 66 1 I n c l u d e s $166,871,125 increase for revised e s t i m a t e u n d e r indefinite a p p r o p r i a t i o n s t o cover p u b l i c d e b t r e t i r e m e n t s chargeable against o r d i n a r y receipts, a n d $10,000,000 decrease on account, revised e s t i m a t e covering i n t e r e s t on t h e p u b l i c d e b t . 132 EEPORT ON T H E FINANCES. Estimates of appropriations for 1925 compared with appropriations for 1924—Continued. I n d e p e n d e n t offices—Continued. State, W a r , a n d N a v y Department Buildings. Tariff Commission U n i t e d S t a t e s Geographic B o a r d U n i t e d States S h i p p i n g B o a r d U n i t e d States V e t e r a n s ' B u r e a u Salaries a n d roiscellaneous Military a n d n a v a l c o m p e n s a t i o n Medical a n d h o s p i t a l facilities a n d services. Vocational r e h a b i l i t a t i o n Military a n d n a v a l i n s u r a n c e I n d i g e n t i n Alaska, special fund District of Columbia 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 Commerce D e p a r t m e n t of t h e Interior: Civil Pensions a n d P e n s i o n Office I n d i a n Service D e p a r t m e n t of .Justice D e p a r t m e n t of L a b o r Navy Department: P a y of t h e N a v y Provisions, m a i n t e n a n c e , freight, fuel, a n d transportation M a r i n e Corps Increase of t h e N a v y Other items under Navy Department P o s t Office D e p a r t m e n t (exclusive of P o s t a l Service) State Department: Proper Foreign intercourse Treasury Department: Collecting t h e r e v e n u e Refunds, d r a w b a c k s , etc., of r e v e n u e P u b h c buildings, c o n s t r u c t i o n , o p e r a t i n g expenses, repairs, e q u i p m e n t , etc Other items imder Treasury Department War Department: Military a c t i v i t i e s P a y of t h e A r m y Q u a r t e r m a s t e r Corps, subsistence, s u p pUes, t r a n s p o r t a t i o n , etc., of t h e A r m y . . National Guard O t h e r m i h t a r y activities Nonmihtary activitiesRivers and harbors Soldiers' h o m e s P a n a m a Canal, operation a n d m a i n t e n a n c e O t h e r n o n m i h t a r y activities I n t e r e s t on p u b h c d e b t Sinking fund O t h e r p u b h c - d e b t r e t i r e m e n t s chargeable against o r d i n a r y receipts T o t a l , excluding P o s t a l Service p a y a b l e from t h e p o s t a l revenues Increase, 1925 estimates over 1924 a p p r o p r i a tions ( + ) , decrease (—). 1925 e s t i m a t e s , including permanent annual. 1924 a p p r o p r i a tions, i n c l u d i n g revised permanent annual. $2, .306,215.00 681,980.00 1,000.00 30,344,000.00 1 $2,412,124.00 742,000.00 2,000.00 50,411,500.00 -$105,909.00 -60,020.00 -1,000.00 -20,067,500.00 47,065,000.00 83,000,000.00 42,000,000. 00 89,000,000.00 88,000,000.00 15;000.00 26,879,812.00 69,590,575. 00 24,048,025.00 53,637,343.00 118,450,000.00 48,683,710.00 120,743,000.00 90,000,000.00 20,000.00 26,086,825.00 85,061,453.00 2 21,145,957.00 -6,572,343.00 -35,450,000.00 -6,683,710.00 -31,743,000.00 -2,000,000.00 -5,000.00 +792,987.00 -15,470,878.00 +2,902,068.00 34,544,424.06 232,120,680. 00 32,647,496. 00 21,378,456.00 6,702,576.51 36,092,674.00 254,774,660. 00 35,002,175.00 2 19,253,506.00 2 7,476,896.00 -1,548,249.94 -22,6.53,980.00 -2,354,679.00 +2,124,9.50.00 -774,319.49 117,000,000.00 121,446,892.00 -4,446,892.00 33,990,000.00 26,090,000.00 10,350,000.00 91,069,054.00 42,539,000.00 25,820,948.00 19,097,000.00 88,193,410.00 -8,549,000.00 +269,052.00 -8,747,000.00 +2,875,644.00 11,520.00 -11,520.00 1,313,515.00 13,674,931.29 1,258,940.00 14,047,725.50 +54,575.00 -372,794.21 50,652,160.00 33,540,000.00 47,902,790.00 35,895,493.41 +2,749,370.00 -2,355,493.41 11,099,750.00 53,694,155.00 9,834,820.00 63,581,792.37 + 1,264,930.00 -9,887,037.37 122,213,362. 00 122,939,514. 00 -726,152.00 61,049,817.00 30,681,500.00 45,079,327.00 59,122,866.00 29,896,590.00 45,315,798.00 +1,926,951.00 +784,910.00 -236,471.00 59,971,621.00 7,772,201.00 7,240,160.00 2,433,104.00 890,000,000.00 310,000,000. 00 75,563,681.00 6,114,500.00 6,602,203, 00 3,637,430.00 3 940,000,000.00 297,144,300.00 -15,592,060.00 +1,657,701.00 +637,957.00 -1,204,326.00 -50,000,000.00 +12,855,700.00 172,277,975.00 3,018,069,946.06 < 214,823,825. 00 3,278,434,968.62 -42,545,850.00 -260,365,022.56 1 Includes t h e following a m o u n t s transferred t o t h e office of S u p e r i n t e n d e n t of S t a t e . W a r , a n d N a v y D e p a r t m e n t Buildings in connection w i t h t h e transfer t o t h a t office of t h e r e s p o n s i b i h t y lox. care a n d m a i n t e n a n c e of certain p u b h c buildings, n a m e l y : D e p a r t m e n t of Commerce, $193,044; D e p a r t m e n t of L a b o r , $33,300; D e p a r t m e n t of Justice, $42,550; t o t a l , $268,894. 2 E x c l u s i v e of a m o u n t transferred t o office of S u p e r i n t e n d e n t of S t a t e , W a r , a n d N a v y D e p a r t m e n t Buildings as explained in n o t e 1. 3 Revised b y decrease of $10,000,000 u n d e r a m o u n t s h o w n i n ' ' B u d g e t , 1924." * Revised b y increase of $166,871,125 a m o u n t s h o w n i n " B u d g e t , 1924." ' Attention is respectfully invited to the attached abstracts of the annual reports of the various bureaus and divisions of the Treasury Department and to the tables and exhibits accompanying the report on the finances. A. W. MELLON, Secretary of the Treasury. To the SPEAKER OF THE H O U S E OF R E P R E S E N T A T I V E S . EXHIBITS ACCOMPANYING THE REPORT ON THE FINANCES. 183 EXHIBITS. CO EXHIBIT 1. STATEMENT OF THE PUBLIC D E B T OF THE UNITED STATES Detail. mTEREST-BEAKJNG DEBT. Bonds: 2 p e r cent consols of 1930. 4 per cent loan of 1925 2 per cent P a n a m a Canal loan of 1916-1936 2 p e r cent P a n a m a Canal loan of 1918-1938 3 per cent P a n a m a Canal loan of 1961 3 per cent conversion b o n d s of 1946-1947 . 2^ per cent-postal savings b o n d s (first t o t w e n t y - f o u r t h series). A m o u n t issued. JUNE 30, 1923. A m o u n t retired. • S646,250,150. 00 162,315,400.00 54,631,980.00 30,000,000.00 50,000,000.00 28,894,500.00 11,860,200.00 $46,526,100.00 43,825,500.00 5,677,800.00 4,052,600.00 200,000.00 1,989,455,550. 00 37,691,350.00 Amount outstanding. $599, 724,050.00 118,489,900.00 48,954,180. 00 2.5,947,400.00 49,800,000.00 28,894,500.00 11,860,200.00 hd S8S3,670, 230.00 First L i b e r t y loan 3 i p e r cent b o n d s of 1932-1947 Converted 4 p e r cent b o n d s of 1932-1947 Converted 4J 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. O $1,409,999,050.00 9,971,850.00 528,301,150.00 3,492,150.00 H 1,951, 764,200. 00 Second L i b e r t y loan 4 p e r cent b o n d s of 1927-1942 Converted 4^ p e r cent b o n d s of 1927-1942 3,807,865,000.00 w 608,828,2m 00 42,817,400.00 3,156,219,400.00 3,199,036,800.00 T h i r d L i b e r t y loan— 4^ 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^ p e r cent b o n d s of 1933-1938.. 4,175,650,050.00 767,862,800.00 3,407,787,250. 00 6,964,581,100.00 636,015,450.00 6,328,565,650.00 o 14,887,153,900.00 T r e a s u r y bonds— 4A p e r cent b o n d s of 1947-1952., Notes: Treasury n o t e s Series A-1924 Series B-1924 Series A-1925 Series B-1925 ,,...,..,. Series C-1925 Series A-1926 Series B-1926 Series A-1927 Series B - 1 9 2 7 . . . , ,., 763,962,300.00 311,191, 600. 00 390, 706, 100.00 601,599, 500.00 335,141, 300.00 469,213, 200.00 617,769, 700.00 486,940, 100.00 366,981, 500.00 667,991 650. 00 763,954,300.00 8,000.00 103,000. 00 10,025,000.00 3,243,600.00 24,161,500.00 37,916,700.00 1,032,500.00 62,453,600.00 4,403,600.00 311, 380, 598, 310, 431, 616, 424, 362, 667, 600.00 100. 00 900.00 800. 00 500. 00 200.00 500. 00 900.00 650.00 4,104,195,150.00 Certificates of indebtedness^. Series TS-1923 Series TD-1923 Series TS2-1923 Series TM-1924 Series TD2-1923 Treasury (war) savings securities:i Treasury (war) savings certificates, Series 1919 Treasury (war) savings certificates. Scries 1920 Treasury (war) savings certificates. Series 1921 Treasury savings certificates, Series 1921, issue of Dec. 15, 1921.. Treasury savings certificates, Series 1922, issue of Dec. 15, 1921.. Treasury savings certificates, Series 1922, issue of Sept. 30, 1922.. Treasury savings certificates, Series 1923,' issue of Sept. 30, 1922.. Thrift and Treasury savings stamps, unclassified sales, etc Total interest-bearing debt outstanding 227,000,000.00 197,233,500.00 154,252,000.00 321,196,000. 00 189,8.^3,500.00 47,883,500.00 1,721,000.00 213,000.00 102,666, 312. 94 43,681, 220.05 22,691, 590. 77 2,245, 082. 05 117,028; 116.35 19,397, 595. 60 124,263; 452. 43 8,905, 270.11 52,143,974.92 21,550,357.98 9,290,886. 62 341,082. 40 11,812,703.05 1,644,361. 45 3,596,338.85 3,300,241.00 8,279,000.00 179,116,500.00 195, 512,500.00 154,039,000.00 321,196,000.00 181,554,500.00 1,031,418,500.00 50,522,338.02 22,130,862. 07 13,400,704.15 1,903,979.65 105,215,413.30 17,753,234.15 120,667,113. 58 5,605,029.11 in 337,198,674.03 22,007,590,754. 03 ^ 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 ON PRESENTATION. o > Kl 1,296,940.26 2,228,500.00 296,320.00 514,650.00 25,045,800.00 68,789,950.00 . Old debt matured at various dates prior to Apr. 1,1917 Certificates of indebtedness, at various interest rates, matured Spanish War loan of 1908-1918 3 | per cent Victory notes of 1922-1923 4 | per cent Victory notes of 1922-1923 (with serial letters " A " to " F ' ' ) 4| per cent Victory notes of 1922-1923 (with serial letters " G " to " L " ) Total outstanding matm*ed debt on which interest has ceased o ,172,160.26 H D E B T B E A R I N G N O 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 will be retired on presentation: Old demand notes , National-bank notes and Federal reserve bank notes assumed by the United States on deposit of lawful money for their retirement — Fractional currency — 346,681,016.00 152,979,025.63 193,701,990. 37 53,012. 50 in 48,172,359.00 1,997,481.68 243,924,843.55 Total outstanding debt bearing no interest.. o 22,349,687,7-57= 84 Total gross debt ?. I Amounts issued of Treasury (war) savings certificates of the Series of 1919, 1920, and 1921 are on basis of reports of sales, taken at issue price; amounts retired are on basis of redemption value. Amounts issued and amounts outstanding of Treasury savings certificates, issue of Dec. 15,1921, series of 1921 and 1922, and issue of Sept. 30,1922, Series of 1922 and 1923, are on basis 6f net redemption value, partly estimated, and for the issue of Dec. 15, 1921, include receipts from sales of Treasury savings stamps. « The total gross debt June 30,1923, on the basis of daily Treasury statements was 122,349,707,365.36 and the net amount of pubhc debt redemptions and receipts in transit, etc., was $19,607.52. > CO en Statement of the public debt of the United States, June 30, 1923—Continued. Amount issued. Detail. DEBTOBEARING NO INTEREST—PAYABLE ON PRESENTATION—Continued. Matured Interest obhgations, etc.: Matured interest obhgations outstanding Discount accrued (partly estimated) on Treasury (war) savings cates Series of 1918 ^ Discount accrued (partly estimated) on Treasury (war) savings cates. Series of 1919 < Discount accrued (partly estimated) on Treasury (war) savings cates. Series of 1920 * Discount accrued (partly estimated) on Treasury (war) savings cates, Series of 1921 * ; Treasury warrants and checks outstanding Disbursing officers' checks outstanding certificertificertificertifi- Amount retired. CO Amount outstanding. . S61,354,030.02 30,946,745.00 11,157,633.95 3,754,024.41 1,429,366.59 1,606,057.22 65,837,603. 70 o $176,085,460.89 22,525,773,218.73 Balance held by the Treasurer of the United States as per daily Treasury statement for .June 30, 1923 Deduct: Net excess ofdisbursements over receipts in June reports, subsequently received Net debt, including matured interest obhgations, etc. ^ 370,939,121.08 1,052,305.05 369,886,816.03 22,155,886,402.70 3 Treasury (war) savings certificates. Series of 1918, matured Jan. 1,1923. The entire outstanding principal amount, taken at issue price less amounts retired on basis of redemption value, has already been charged out, so that the balance still outstanding appears as discount accrued, partly estimated. * Accrued discount calculated on basis of exact accrual at rate of 4 per cent per annum compounded quarterly, with due allowance for cash redemptions to date. 5 No deduction is made on account of obhgations of foreign Governments or other investments. O o in Detail of outstanding interest-bearing issues as shown above, June SO, 1923. Title. Authorizing act. Rate of interest. Date of issue. When redeemable or payable. Interest payable. INTEREST-BEARING DEBT. Bonds: Consols of 1930 Loan of 1925 Panama Canal loan of 1916-1936.... Panama Canal loan of 1918-1938. Panama Canal loan of 1961 Mar.l4, 1900 Jan. 14, 1875 June 28, 1902, and Dec 21, 1905. -do. Aug. 5, 1909, Feb. 4, 1910, and Mar. 2, 1911. Dec. 23, 1913 June 25,1910 Conversion bonds Postal savings bonds (first to twenty-fourth series). First Liberty loan— 3 J per cent bonds of 1932-1947 Apr.24,1917 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— Sept. 24,1917 4 per cent bonds of 1927-1942 Converted 4^ per cent bonds of 1927-1942. Sept. 24,1917, as amended . Third Liberty loan— do Ai per cent bonds of 1928 Fourth Liberty loan— 4i per cent bonds of 1933-1938 .do. Treasury bonds— 4iper cent bonds of 1947-1952.. Notes: Treasury n o t e s Series A-1924 Series B-1924 Series A-1925 Series B-1925 Series C-1925 Series A-1926 Per cent. 2 Apr. 1,1900 4 Feb. 1,1895: Aug. 1,1906 Nov. 1, 1908 J u n e l , 1911 2i Jan. 1, 1916-1917.. Jan. 1, July 1 1911-1923. Redeemable after Apr. 1,1930., Redeemable after Feb. 1,1925.. /Redeemable after Aug. 1,1916.. \Payable Aug. 1,1936 /Redeemable after Nov. 1,1918. \Payable Nov. 1, 1938 Payable June 1,1961 Jan. 1, Apr. 1, July 1, Oct. 1. Feb. 1, MTay 1, Aug. 1, Nov. 1. Do. Do. Mar. 1, June 1, Sept. 1, Dec. 1. in Payable 30 years from date of issue.. Jan. 1, Apr. 1, July 1, Oct. 1. Redeemable on and after 1 year from Jan. 1, July 1. date of issue. Payable 20 years from date of issue.. i Oct. 24, 1918.. I/Redeemable on or after Jime 15,1932. I"June 16, Dec. 15. \Payable June 15,1947 Do. -do Do. .do Do. .do. Nov. 15, 1917. May 9,-1918... /Redeemable on or after Nov. 15,1927. JMay 15, Nov. 15. j\Payable Nov. 15,1942 Do. ..do June 15,1917Nov. 15,1917. May 9,1918... do Oct. 24, 1918-. Payable Sept. 15,1928 Mar. 16, Sept. 15. I/Redeemable on and after Oct.15,1933. JApr. 15, Oct. 15. \Payable Oct. 15,1938 .do. Oct. 16, 1922.. /Redeemable on and after Oct.16,1947. \Payable Oct. 15,1952 -do. -do. .do. June 15,1921. Sept. 15, 1921. F e b . l , 1922.. June 15,1922. Dec. 16,1922.. Mar. 15, 1922.. .do. -do- Payable June 16,1924., PayableSept. 15,1924. Payable Mar. 15,1925.. PayableDec. 15,1925.. Payable June 15,1925.. Payable Mar. 15,1926.. Q O w Do. June 16, Dec. 16. Mar. 15, Sept. 15. Do. June 15, Dec. 15. Do. Mar. 16, Sept. 16. CO- Detail of outstanding interest-bearing issues CLS shown above, June SO, 1923—Continued. CO 00 Title. Authorizing act. Rate of interest. Date of issue. When redeemable or payable. Interest payable. INTEREST-BEARING DEBT—continued. Notes—Continued. Treasury notes—Continued. Series B-1926 Series A-1927 Series B-1927 Certificates of indebtedness: TaxSeries TS-1923 Series TD-1923 Series TS2-1923 Series TM-1924 Series TD2-1923 Sept. 24,1917, as amended.. do do do ..do do ..do do. ; Per cent. 4f 3f 4 tt 4 Treasury (war) savings certificates . . ..do i 4 Treasury savings certificates, issue of Dec.1.5,1921. do 2 4^ Treasury savings certificates, issue of Sept.30,1922. do 24 Aug. 1,1922 Jan. 15,1923 May 15,1923 Payable Sept. 16,1926. Payable Dec. 16,1927 Payable Mar. 15,1927 Mar. 15, Sent. 15. June 15, Dec. 15. Mar. 15, Sept. 15. Mar. 15, Sept. 15. Payable Sept. 15,1923 June 15, Dec. 15. Payable Dec. 15,1923 At maturity. Payable Sept. 15, 1923 Sept. 15, Mar. 15. Payable Mar. 15,1924 ." At maturity. PayableDec. 15, 1923 Redeemable on demand; payable fJan. 2,1919 Jan. 1,1924. Redeemable on demand; payable At maturity or redemption. •Jan. 2,1920 .'. Jan. 1,1925. Redeemable on demand; payable Jan. 3,1921 Jan. 1,1926. Do. Various dates from Redeemable on demand; payable Dec. 1.5,1921. five years from date of Issue. Do. Various dates from .. do Sept. 30,1922. Sept. 15, 1922...... Dec. 15,1922 Mar. 15, 1923 do. June 16, 1923 1 If held to maturity. Treasury (war) savings certificates yield interest at rate 4 per cent per annum compounded quarterly for the average period to'maturity on the average issue price. Thrift stamps and Treasury savings stamps do not bear interest. 2 Treasury savings certificates of the issue dated Dec. 15, 1921, yield interest at about 4^ per cent per annum, compounded semianmiahy, if held to maturity, but may be redeemed before maturity to yield about 3^ per cent per annum, compounded semiannually. This issue was withdrawn from sale Sept. 39, 1922, in favor of the issue dated Sept. 30,1922, which yields interest at about 4 per cent per annum, compounded semiannuaUy, if held to maturity, but may be redeemed before maturity to yield about 3 per cent per annum simple interest. The Trea.sury savings certificates of these issues all mature five years from date of issue. o O Q. m m SECRETARY OF T H E TREASURY. 139 E X H I B I T 2. PRELIMINARY 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 , 1923. [On the basis of daily Treasury 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 $599, 724, 050.00 118, 489, 900.00 48, 954,180.00 25, 947, 400.00 49, 800, 000.00 28, 894, 500.00 11, 877, 900.00 $883, 687, 930.00 First Liberty Loan of 1932-1947 Second Liberty Loan of 1927-1942 Third Liberty Loan of 1928 Fourth Liberty Loan of 1933-1938 1, 951, 648, 750.00 3,198,197,050.00 3, 329, 273, 350.00 6, 326, 711, 750.00 14, 805, 8310, 900.00 763, 952, 300.00 Treasury Bonds of 1947-1952 Total bonds. Notes: Treasury notes— Series A-1924, maturing June 15, 1924. Series B-1924, maturing Sept. 15, 1924. Series A-1925, maturing Mar. 15, 1925. Series B-1925, maturing Dec. 15, 1925. Series C-1925, maturing June 15, 1925. Series A-1926, .maturing Mar. 15, 1926. Series B-1926, maturing Sept. 15, 1926. Series A-1927, maturing Dec. 15, 1927. Series B-1927, maturing Mar. 15, 1927. 16,453,471,130.00 311, 088, 600.00 380, 681,100.00 598, 355, 900.00 299, 663, 900.00 406, 031, 000.00 615, 707, 900.00 414, 922, 300.00 355, 779, 900.00 668, 201, 400.00 4,050,432,000.00 Treasury certificates: Series TD-1923, maturing Dec. 15,1923. Series TD2-1923, maturing Dec. 15, 1923 Series TM-1924, maturing Mar. 15,1924. Series TM2-1924, maturing Mar. 15, 1924 191, 517, 500.00 178, 549, 500.00 321,196,000.00 249, 750, 500.00. 941,013,500.00 Treasury (War) savings securities: Treasury (War) Savings Certificates, Series 1919 ' Treasury (War) Savings Certificates, Series 1920 ' -Treasury (War) Savings Certificates, Series 1921 ^ Treasury Savings Certificates, Series 1921, Issue of Dec. 15, 1921 ^ Treasury Savings Certificates, Series 1922, Issue of Dec. 15, 1921-2. Treasury Savings Certificates, Series 1922, Issue of Sept. 30, 1922 ^ Treasury Savings Certificates, Series 1923, Issue of Sept. 30, 1922 '' Thrift and Treasury Savings Stamps, Unclassified Sales, etc 50,001,735.61 21, 485, 327. 23 12, 846, 745.06 1, 869, 066.85 103,104, 348. 50 17,084, 740.00 144, 501, 687.18 4, 524, 767. 22 355,418,417. 65 Total interest-bearing debt ^ Net cash receipts. 62166—FI 1923 .- 21, 800, 335,047.65 * Net redemption value of certificates outstanding. 11 140 EEPORT ON THE FINANCES. Matured debt on which interest has ceased: Old debt matured at various dates prior to Apr. 1, 1917 Certificates of indebtedness Spa,nish War loan of 1908-1918 3i per cent Victory Notes of 1922-1923..... 41 per cent Victory Notes of 1922-1923— • Called for redemption Dec. 15, 1922... Matured May 20, 1923 Debt bearing no interest: United States notes. Less gold reserve Deposits for retirement of national-bank notes and Federal reserve bank notes Old demand notes and fractional currency. Total gross debt ' | 1 , 295, 510. 26 2, 225,000.00 274, 200.00 237, 200.00 11,882, 750.00 25,887, 550.00 $41,802,210.26: 346, 681,016.00 152,979,025.63 193,701, 990. 37 44, 319, 219.00 2,050,493.83 240,071, 703. 20' 22,082,208,961.11 EXHIBIT 3. STTMMABY STATEMENT OF INTEREST-BEARING BONDS, NOTES, AND CERTIFICATES OF INDEBTEDNESS, ENGRAVED, ISSUED, RETIRED, AND CANCELED DURING THE FISCAL YEAR ENDED JUNE 30, 1023, AND AMOUNTS ON HAND AND OUTSTANDING JUNE 30, 1922, AND JUNE 30, 1923. Transactions. I. Transactions in interest-bearing securities (as afliecting the outstanding pubUc debt): A. Interest-bearing securities outstanding June 30,1922 (see Annual Report, June 30,1922). B. Interest-bearing securities Issued during the fiscal year 1923— 1. Upon original subscriptions against cash received (see Exhibit 4) 2. Upon exchange, conversion, etc., for securities of equal par value retired (see Exhibit 4). 3. Upon adjudicated claims for replacement (see Exhibit 4) Amount. Pieces. $22,032,020,270 43,786,590 7,057,189,860 3,804,631,340 2,302,0.50 1,327,888 2,142,460 8,721 4. Total issues during the fiscal year 1923 (see Exhibit 4) 10,864,123,250 3,479,069 C. Total interest-bearing securities to account for (Items A and B-4) 32,896,143,520 147,265,659 7,323,073,300 3,804,631,340 2,302,050 6,374,474 7,976,775 8,788 11,130,006,690 14,360,037 95,744,750 21,670,392,080 760,089 32,145,533 32,896,143,520 147,265,6591 D. Interest-bearing securities retired during the fiscal year 1923— 1. Account of redemption (see Exhibit 5) 2. Account of exchange, conversion, etc., for securities of equal par value issued (see Exhibit 5).. . 3. Account loss or destruction (covered by insurance or bonds of indemnity) (see Exhibit 5) 4. Total retirements during the fiscal year 1923 (see Exhibit 5).. E. Securities outstanding June 30,1923, which matured during the fiscal year (see Exhibit 6). F. Total interest-bearing securities outstanding June 30,1923 (see Exhibit 7) Q. Total interest-bearing securities accounted for (Items P-4, E, and F) , Jl. Transactions in Interest-bearing.securities (as affecting the accountabihty of the Treasury Department and its agents): A. Interest-bearing securities on hah^ Junp 30,1922 (see Eidiibit 10)1 '.'. '._........... 1..,.,... 14,164,281,780 21,700,478 B. Interest-beartng ecuritles received from Burea^ of Engraving and Printing during the fiscal year 1923 (see Exhibit 9). 12,653,993,630 3,088,669 C. Iriterest-bearlng securities received for retirement during the fiscal year 1923— 1. Account redemption— (a) Securities maturing subsequent to June 30, 1922 (see Item I, D-1, above) (6) Securities maturing prior to July 1,192^ (see Table D)..'...'..' I.:....:. :..:.: ... 1..::.:.:..:.., 2. Account exchange, conversion, etc., for securities of equal par value issued (see Item I, D-2, above) 3. Account loss or destruction (covered by insurance oj: bonds of indemrsity) (see Item I, D-3, above) 7,323,073,30,0 22,823,470 3,804,631,340 2,302,050 6,374,706 • 14,684 7,993,219 8,796 11,152,830,160 14,391,405 4. Total securities received for retirement.. I fiofs l^gt toltt^f *'PF^W"feQft<i5m^ P^ttaie^a certificates m accotmt of ihcomplete 4enoii^ri^t|Q^al^^|Qrmatioii vnth respect to securities outstanding. in o O > in ^ M SumMqfy slaiemeni of interest-bearing bonds, notes, and certificates af indebtedness, engraved, issued, retired, and canceled during the fiscal year ended • ^ June 30, 1923, and amounts on hand and outstanding June SO, 1922, and June SO, 1923—Continued. K) Transactions. Amount. I I . T r a n s a c t i o n s in I n t e r e s t - b e a r i n g securities (as affecting t h e a c c o u a t a b i l i t v of t h e T r e a s u r y D e p a r t m e n t a n d i t s a g e n t s ) — C o n t i n u e d . D . T o t a l interest-bearing securities to a c c o u n t for ( I t e m s A , B , a n d 0-4) Pieces. $37,971,105,570 39,180,552 7,057,189,860 3,804,631,340 2,302,050 1,325,012 2,154,828 8,729 10,864,123,250 .•? 4Q1 .tifiQ 7,323,073,300 22,823,470 3,804,631,340. 312,195,200 2,302,050 1,922,293,200 6,374,706 14,684 7,993,219 714,847 8,796 3,037,626 6. T o t a l deliveries t o t h e Register of t h e T r e a s u r y d u r i n g t h e fiscal year 1923 13,387,318,560 18,143,878 G. T o t a l securities on h a n d J u n e 30, 1923— . 1, I n t e r e s t - b e a r i n g securities (see E x h i b i t 10) 2. Securities w h i c h h a v e m a t u r e d d u r i n g t h e fiscal year 1923 (see E x h i b i t 10) 13,583,260,610 136,403,150 16,770,486 768,619 13,719,663,760 17,545,105 37,971,105,570 39,180,552 E . I n t e r e s t - b e a r i n g securities issued d u r i n g t h e fiscal year 1923— i . U p o n original s u b s c r i p t i o n s against cash received (see I t e m I, B - 1 , above) . 2. U p o n exchange, conversion, etc., for securities of equal par value retired (see I t e m I, B - 2 , above) 3. U p o n adjudicated claims for r e p l a c e m e n t (see I t e m I, B - 3 , above) 4. T o t a l issues d u r i n g t h e fiscal year 1923 (see I t e m I , B - 4 , above) F . I n t e r e s t - b e a r i n g securities delivered t o t h e Register of t h e T r e a s u r y — 1. A c c o u n t r e d e m p t i o n — (a) Securities m a t u r i n g s u b s e q u e n t t o J u n e 30, 1922 (see I t e m IT, C - l a , above) (6) Securities m a t u r i n g prior to J u l y 1, 1922 (see I t e m I I , C-1& a b o v e ) 2. A c c o u n t exchange, conversion, etc., for securities of equal par value issued (see I t e m TI, C-2, above) 3. A d j u s t m e n t on deliveries of retired securities t o Register a c c o u n t of d e n o m i n a t i o n a l exchange t r a n s a c t i o n s (see n o t e 2, below) 4. Account loss or d e s t r u c t i o n (covered b y insurance or bonds of i n d e n u i i t y ) (see I t e m I I , 0 - 3 , above) 5. U n i s s u e d securities (excess stocks) (see E x h i b i t 11).". '.. . . ' . . , . . . . ' . . . . ... . . . . . . .. . . . . 3. T o t a l securities on h a n d J u n e 30, 1923 H . T o t a l interest-bearing securities accounted for ( I t e m s E - 4 , F - 6 , a n d G-3) . .. .. . .. .. . 2 Adjustment necessary on account of separation of retired and unissued denominational exchange stock by the Federal reserve banks subsequent to June 30, 1922. and the turnover of stock during the fiscal year 1923. H O o H W > o EXHIBIT 4. (See Exhibit 3, Item I-B.) INTEREST-BEARING BONDS, NOTES, AND CERTIFICATES OF INDEBTEDNESS ISSUED DURING THE FISCAL YEAR ENDED JUNE 30, 1923, CLASSIFIED BY ISSUES AND ACCOUNTS. E x c h a n g e , conversion, etc., against securities of e q u a l p a r v a l u e retired. Original subscriptions. Issue. Exchanges. Denominational. 1.. B o n d s : A. " P r e - w a r " bonds— 1. 2 per cent consols of 1930 2. 4 per cent loan of 1925 3. 2 per cent P a n a m a Canal loan of 1916-1930 4. 2 per cent P a n a m a Canal loan of 1918-1938.-.. 5. 3 per cent P a n a m a Canal loan of 1961 6. 3 p e r cent conversion b o n d s of 1946-47 7. 2^ per c e n t Postal Savings b o n d s (first t o t w e n t y fourth s e r i e s ) . . . B . Liberty bonds— 1. F i r s t L i b e r t y loan of 19321947— (a) F i r s t 3^'s. (.6) F i r s t 4 ' s . . . (c) F i r s t 4 i ' s . . (d) F i r s t seco n d 4J's. Coupon. Registered. Temporary. Interim. Conversion. Transfer. Mutilations. Total. Adjudicated claims for replacement. Total. Pieces. in o $115,650 $34,241,400 $34,357,050 1,199,200 12,328,550 13,527,750 2,611,680 140 $34,357,050 5 907 13,527,850 2,576 2,611,680 2,611,680 663 H 898,520 898,660 898,660 331 H 35,700 3,712,000 3,747,700 3,757,700 1,264 2,000 1,736,300 1,738,300 1,738,300 203 176,120 3 692,880 769,000 1,400 800,160 1,536 127,158,950 2,246,050 82,386,0.50 12,550 18,750 52,650 127,171,500 2,264,800 82,438,700 67,191 18,594 76 990 571,300 2,800 574.100 736 $100 O •^ W Pi $29,760 $24,955,600 57,827,600 $29,325,000 14,969,400 $16,150 $65,200 148,500 100 871,350 $1,220,500 5,200 400 47,397,650 18,768,850 9,074,600 652,650 $2,556,450 3,923,250 18.600 341,650 68,800 107,900 I lacludes interim certificates amountmg to $75,12Q. 10,450 42,500 10,000 > d in pi 8 iQclud^ iftterim certificate^ apiou^itlRg to |669,76Q. 03 Interest-bearing bonds, notes, and certificates of indebtedness issued during the fiscal year ended SuM BO, i92S, classified by issue's dhd accounts—Con. J4^ E x c h a n g e , conversion, etc., against securities of e q u a l p a r value retired. ISSUfei Original subscriptions. Exchanges. Denominational. 1. B o n d s — C o n t i n u e d . B . L i b e r t y bonds—Con. 2. Second L i b e r t y loan of 19271942— . (a) Second 4's lb) S e c o n d 4i's..;.. 3. T h i r d L i b e r t y loan of 1928 4. F o u r t h L i b e r t y loan of 19331938 C. 4 i per cent T r e a s u r y b o n d s of 1947-1952... $763,962,300 II. Notes: A . V i c t o r y L i b e r t y loan of 1922-23— 1 Victory 4 f ' s . . . . . B . T r e a s u r y notes— 1 Series A-1924 . . . 2. Series B-1924 3. Series A-1925 . . . 4 Series B-1925 9,811,850 5. Series C-1925. . . 469,213,200 6. Series A-1926 7. Series B-1926 486,940,100 8 Series A-1927 366,981,500 9. Series B-1927 667,991,650 I I I . Certificates of i n d e b t e d n e s s : A . T a x issues— 1 Series TS-1922 2. Series TS2-1922 . 3 Series TD-1922 4. Series TD2-1922 . 5. S e r i e s T M - 1 9 2 3 . . . Coupon. Registered. Temporary. Interim. Conversion. Transfer. Mutilations. $10,600 $4,458,950 $4,844,200 $23,800 $5,300 224,428,350 56,489,800 66,759,900 3,035,550 $11,581,300 13,218,550 266,007,350 86,407,050 73,851,100 13,730,950 20,351,050 376,080,050 151,123,850 98,485,450 31,675,050 52,387,000 219,550 $604,050 37,444,000 53,448,400 117,471,400 64,003,000 163,866,100 75,516,100 155,398,900 96,357,100 94,155,800 5,348,500 13,722,500 26,342,000 26,243,500 45,988,500 Total. Pieces. $9,994,900 07,583 O pi Hi 204,30.0 375,780,150 295,061 O 439,950 460,871,600 467,053 709,970,950 1,105,900 711,136,850 739,412 $9,946,900 $48,000 62,400 375,575,850 84,150 460,431,650 1,569,500 5,160,000 12,800 178,586,200 11,400 942,559,900 471,107 662,150 61,344,050 2,695,400 66,950 295,450,400 334,250 77,067,900 94,776,000 230,681,850 Total. Adjudicated . claims for replacement. 600 2,500 295,784,650 153,398 37,444,000 53,448,400 117,471,400 64,003,000 163,866,100 75,516,700 155,401,400 96,357,100 94,155,800 37,444,000 53,448,400 117,471,400 73,814,850 633,079,300 75,516,700 642,341,500 463,338,600 762,147,450 3,883 4,205 9,537 25,401 200,296 9,947 123,111 138,461 385,215 5,348,500 13,722,500 26, .342,000 26,243,500 45,988,500 5,348,500 13,722,500 26,342,000 26,243,500 45,988,500 273 708 1,354 4,319 4,217 w a m 6. Series TM2-i923 . 113,^44^500 7. Series T J - 1 9 2 3 . . . 8. Series T S - 1 9 2 3 . - . 227,000,000 9. Series TS2-1923 . . 154,252,000 10. Series T D - 1 9 2 3 . . . 197,233,500 11. Series T M - 1 9 2 4 . . . 321,196,000 12. Series TD2-1923 . 189,833,500 B . L o a n issues— 1. Series B-1922 2. Series D-1922 . . . C. P i t t m a n A c t D . Special.. . . . 3,089,000,000 16,332,000 130,443,500 117,174,000 55,722,500 90,690,000 69,780,000 25,349,500 <»•• 1,860,500 18,029,000 3,967,000 16,352,000 130,443,500 117,174,000 55,722,500 90,690,000 69,780,000 25,349,500 130,076,500 130,443,500 344,174,000 209,974,500 287,923,500 390,976,000 215,183,000 9,5§3 10,228 39,428 26,629 21,972 74,465 26,204 1,860,500 18,029,000 3,967,000 1,860,500 18,029,000 3,967,000 3,089,000,000 156 2,013 20 299 . I V . T o t a l securities Issued d u r ing fiscal y e a r 1923 7,057,189,860 2,748,399,750 467,563,610 345,847,800 55,169,350 .65,200 14,131,750 172,964,480 489,400 3,804,631,340 2,302,050 10,864,123,250 3,491,569 O H W > in dw EXHIBIT 5. (See Exhibit 3, Item I-D.) I N T E R E S T - B E A R I N a BONDS, NOTES, AND CERTIFICATES OF INDEBTEDNESS RETIRED DURING THE FISCAL YEAR ENDED JUNE 30, 1923, CLASSIFIED BY ISSUES AND ACCOUNTS. Exchange, conversion, etc., against securities of equal par value issued. Issue. I. Bonds: A. "Pre-war" bonds— 1. 2 per cent consols of 1930 2. 4 per cent loan of 1925 3. 2 per cent Panama Canal loan of 1916-1936 4. 2 per cent Panama Canal loan of 1918-1938 5. 3 per cent Panama Canal loan of 1961 6. 3 per cent conversion bonds of 1946-47 7. 2^ per cent postal savings bonds (first to twenty-fourth series) B. LibertvDonds— 1. First Liberty loan of 1932-1947— (a) First sys (6) First 4's (c) First 4i's (d) First second 4i's 2. Second Liberty loan of 1927-1942— (a) Second 4's : • (b) Second 4Vs 3. Third Liberty loan of 1928 4. Fourth Liberty loan of 1933-1938 C. 4J per cent Treasury bonds of 1947-1952 II. Notes: A. Victory Liberty loan of 1922-23— 1. Victory 4 ,"s B. Treasury notes— 1. Series A-1924 2. Series B-1924 3. Series A-1925 4. Series B-1925 5. Series C-1925 6. Series A-1926. 7. Series B-192ft 8. Series A-1927 .^.. 9. Series B-19?7 , Redemption. Exchanges. Denominational. Coupon. Registered. Temporary. Interim. O pi H3 $115,650 1,199,200 O 140 35,700 2,000 76,120 $200,000 3,000 1,200 75,350 $24,9.55,600 148,500 47,397,650 341,650 57,827,600 100 18,768,850 68,800 $29,325,000 871,350 9,074,600 107,900 22,100 111,538,150 66,000,750 16,818,100 8,000 604,050 224,428,350 266,007,350 376,080,050 77,067,900 10,600 56,489,800 86,407,0.50 151.12,3,850 94,776,000 4,458,950 66,759,900 73,851,100 98,485,450 1,569,500 1,897,347,650 230,681,850 662,150 61,344,050 103,000 10,025,000 3,243,600 24,161,500 37,916,700 1,032,500 62,453,600 4,403,600 37,444,000 53,448,400 117,471,400 64,003,000 163,866,100 75,516,100 155,398,900 96,3.57,100 94,155,800 $65,200 $1,220,500 652,650 10,450 4,844,200 3,035,550 13,730,950 31,675,050 O in I I I . Certificates of i n d e b t e d n e s s : A . T a x issues— 1. Series TS-1922 2 Series TS2-1922 3 Series TD-1922 4 Series TD2-1922 5. Series T M - 1 9 2 3 . 6 Series TM2-1923 7. Series TJ-1923 8. Series TS-1923 9 Series TS2-1923 10. Series TD-1923 11. Series TM-1924 12. Series TD2-1923 B . L o a n issues— 1 Series B-1922 2. Series D-1922 C. P i t t m a n A c t . . D . Special . . . . . . . ' 182,821,000 179,657,500 243,389,000 199,989,000 265,810,500 113,699,000 271,865,000 47,883,500 213,000 1,721,000 8,279,000 ." I V . T o t a l securities retired d u r i n g fiscal year 1923 5,348,500 13.722,500 26,342,000 26,243,500 45,988,500 16,332,000 130,443,500 117,174,000 55,722,500 90,690,000 69,780,000 25,349,500' 259,393,000 149,999,000 74,000,000 3,089,000^000 1,860,500 18,029,000 7,323,073,300 12,748,399,750 in o 467,563,610 Exchange, conversion, etc., against securities of equal par value issued—Continued. Issue. Conversion. I. Bonds: A. "Pre-war" bonds— 1. 2 per cent consols of 1930 2. 4 per cent loan of 1925. 3. 2 per cent Panama Canal loan of 1916-1936 4. 2 per cent Panama Canal loan of 1918-1938 5. 3 per cient Panama Canal loan of 1961.., 6. 3 per cent conversion bonds of 1946-47 7. 2^ per cent postal savings bonds (first to twenty-fourth series). B. Liberty bonds— 1. First Liberty loan of 1932-1947— (a) First3;i's (6) First4's (c) First4i's id) First second 4i's 2. Second Liberty loan of 1927-1942— (o) Second 4's (6) Second 4i's ..,. = == .... 3. Third Liberty loan of 1928..; 4. Fourth Liberty loan of 1933-1938. C. 4i per cent Treasury bonds of 1947-1952. i See note 2 on Exhibit 3. Transfer. Mutilations. 345,847,800 Loss or destruction. 55,169,350 65,200 O Total. Pieces. H Total. W H $34,241,400 12,328,550 2,611,680 898,520 3,712,000 1,736,300 692,880 $2,550,450 11,581,300 $34,357,050 13,527,750 2,611,680 898,660 3,747,700 1,7.38,300 769,000 "i,"466' $34,357,050 13,527,850 2,611,680 898,660 3,957,700 1,738,300 .770,400 4,486 3,973 492 187 2,528 217 4,624 $100 10,000 14,969,400 5,200 3,923,250 42,500 $16,150 400 18,600 127,158,950 4,796,500 79,835,600 571,300 12,550 18,750 52,650 2,800 127,174,500 4,816,450 79,963,600 574,100 325,952 42,538 305,174 1,801 23,800 13,218,550 20,351,050 52,387,000 5,160,000 5,300 02,400 84,150 219,550 12,800 21,528,200 363,994,550 460,431,650 709,970,950 178,586,200 48,000 iJ04,300 439,950 1,165,900 11,400 21,598,300 475,737,000 526,872,3.50 727,954,950 178,605,600 164.095 1,108,150 1,854,944 2,504,215. 114,396 > cl in pi Interest-bearing bonds, notes, and certificates of indebtedness retired during the fiscal year ended June 30,1923, classified by issues and accounts—Con. 00 E x c h a n g e , conversion, e t c . , against securities of e q u a l p a r value issued—Continued. Issue. Conversion. I I . Notes: . A . Victory L i b e r t y loan of 1922-23— 1. Victory 4^'s B . Treasury notes— 1. Series A-1924 2. Series B-1924. 3.' Series A-1925 4. Series B-1925 5. Series C-1925 6. Series A-1926 . 7. Series B-1926 8. Series A-1927 9. Series B-1927 I I I . Certificates of i n d e b t e d n e s s : A . T a x issues— 1. Series TS-1922 2. Series TS2-1922. 3. Series TD-1922 4. Series TD2-1922 5. Series TM-1923 6. Series TM2-1923 7. Series TJ-1923 . . . 8. Series TS-1923 9. Series T S 2 - 1 9 2 3 . . . . 10. Series TD-1923 11. Series TM-1924 .. 12. Series TD2-1923 B . L o a n issues— 1. Series B-1922 2. Series D-1922 C. P i t t m a n A c t D . Special $2,695,400 Mutilations. $66,950 •. . . 600 2,500 . . . Total. Pieces. Total. $295,450,400 $334,250 37,444,000 53,448,400 117,471,400 64,003,000 16-3,866,100 75,516,700 155,401, 400 96,357,100 " 94,155,800 $2,193,132,300 7,399,855 37,547,000 63,473,400 120,715,000 88,164,500 201, 782,800 76,549, 200 217,855,000 100, 760,700 94,155,800 10,301 11,674 18,630 13,361 27,060 17 160 29,542 15,585 18,725 188,169,500 193,380,000 269,731,000 226,232,500 311,799,000 130,031,000 402,308,500 165,057,500 55,935,500 92,411,000 69,780,000 33,628,500 36,409 31,077 50,727 30,513 51,148 9,563 48,235 15,672 5,055 7,338 10,806 3,866 261,253,500 168,02S, 000 77,967,000 3,089,000,000 55,048 21,123 177 299 g o pi H O . 5,348,500 13,722,500 26,342,000 26,243,500 45,988,500 16,332,000 130,443,500 117,174,000 55,722,500 90,690,000 69,780,000 25,349,500 '. . . . I V . T o t a l securities retired d u r i n g fiscal year 1923 » See note 2 on Exhibit 3. Transfer. Loss or destruction. - < 1,860,500 18,029,000 3,967,000 3,967,000 $14,131,750 172,964,480 489,400 13,804,631,340 2,302,050 1 11,130,006,690 114,376,721 I—I > O in EXHIBIT 6. (See Exhibit 3, Item l-E.) NOTES AND CERTIFICATES OF INDEBTEDNESS OUTSTANDING JUNE 30, 1923, WHICH MATURED DURING THE FISCAL YEAR 1923, CLASSIFIED BY ISSUES AND DENOMINATIONS. $50 Issue. $100 $500 $1,000 - $5,000 $50,000 $10,000 $7,131,100 117,100 $7,733,500 444,600 $2,876,500 373,000 $5,214,000 706,000 $425,000 135,000 1 $500,000 140,000 13,540,250 620,400 17,217,800 2,451,500 8,058,000 2,528,000 15,054,000 4,715,000 1,110,000 905,000 2,140,000 650,000 1100,000 Total 21,308,850 27,847,400 13,835,500 25,689,000 2,575,000 2,430,000 50,000 15,000 9,000 28,000 20", 000 20,000 62,000 1,000 169,000 25,000 .298,000 15,000 5,000 15,000 10,000 155,000 .20,000 200,000 8,000 10,000 1,000 20,000 283,000 606,000 440,000 580,000 14,118,500 26,295,000 3,015,000 3,010,000 I I . Certificates of i n d e b t e d n e s s : A . T a x issues—coupon— 1. Series TS-1922 2 Series TS2-1922 3. Series TD-1922 4. Series TD2-1922 . 5. Series TM-1923 6. Series TM2-1923 7. Series TJ-1923 B . L o a n issues—coupon— 1. Series B-1922 2. Series D-1922 C. P i t t m a n A c t D . Special . . Total I I I . T o t a l securities o u t s t a n d i n g J u n e 30, 1923, w h i c h m a t u r e d d u r i n g t h e fiscal year 1923 Total. Pieces. • I. Notes: A . V i c t o r y L i b e r t y L o a n of 1922-23— 1. V i c t o r y 4 | ' s , Series A - F — (a) Coupon '. (6) Registered 2. V i c t o r y 4 | ' s , Series G - I ^ (a) Coupon (6) Registered ...• $100,000 21,308,850 27,847,400 75,500 500 147,000 50,000 $150,000 $100,000 100,000 . 40,000 490,000 50,000 100,000 $22,880,100 2,165,700 230,959 8,285 57,120,050 11,669,900 474,589 44,938 93,835,750 758,771 50,000 34,000 155,000 11,000 439,500 45,500 1,135,000 53 39 126 3 355 30 681 38,000 1,000 30 1 1,909,000 1,318 95,744,750 760,089 in o w H o H pi 1 Counter entry; deduct. CO EXHIBIT 7. (See Exhibit 3, Item I-F.) O INTEREST-BEARING BONDS, NOTES, AND CERTIFICATES OF INDEBTEDNESS OUTSTANDING JUNE 30, 1923, CLASSIFIED BY ISSUES AND DENOMINATIONS. Issue. $50 $100 , $500 $1,000 $5,000 $10,000 I. Bonds: A. *'Pre-war" bonds 1: 1. 2 per cent consols of 1930— (a) Coupon (6) Registered 2. 4 per cent loan of 1925— (a) Coupon (&) Registered 3. 2 per cent Panama Canal loan, 1916-1936— (a) Coupon (&) Registered 4. 2 per cent Panama Canal loan, 1918-1938— (a) Coupon (6) Registered 5. 3 per cent Panama Canal loan. 1961— (a) Coupon. (6) Registered 6. 3 per cent conversion bonds of 1946-47— (a) Coupon (b) Registered 7. 2^ per cent postal savings bonds (first to twentyfourth series)— (a) Coupon (6) Registered $50,000 $100,000 Pieces. . $960,150 598,763,900 hJ 7,116,950 111,372,950 o pi . 6,000 48,948,180 O 71,340 25,876,060 W H 5,876,200 43,923,800 *' > o 18,728,100 10,166,400 IP 332,380 11,527,820 8. Total "pre-war" bonds outstanding B. Liberty bonds— i: First Liberty loan of 19321947— (a) First 3J's— 1. Coupon $23,232,350 ?. Registered Total. 883,670,230 $29,552,300 2,567^900 $41,079,500 2.82n.nno $945,568,000 15.334.000 XO^OO^^\J\J\f . 821 .mf^nnn ,_-, ,^^^ . «Q.f; fim (V\n ^..v,j^v,v,^v,x,w «7n n.f^n nnn ....v.jv^«v,^«w tifio unn nnn .^a.«-,«v,x^^x,v/^/ 1,039,432,150 37n Kaa onn W.V,,««V/,«;UW 1,787,897 y"ijU^4. (d) First 4's— 1. Ck)upon— 945,450 2. Registered 181,500 (c) First4rs— 1. Coupon , 29,031,550 2. Registered... 1,467,500 (d) First second 4i's— 1. Coupon '.. 123,300 2. Registered.... 22.250 2. Second Liberty loan of 1927-1942— (a) Second 4's— 1. Coupon , 4,044,200 2. Registered... 1,710,400 (6) Second 4J's— 1. Coupon 98,508,650 2. Registered 5,688,450 3. Third Liberty loan of 1928— (a) Coupon 172,933,100 (6) Registered 12,968,350 4. Fourth Liberty loan, 19331938— (a) Coupon 195,253,450 (6) Registered 18,083,000 2,712,350 7,259,500 27,968 28,789 389,573,150 138,728,000 1,388,048 202,172 2,651,800 840,350 6,341 1.920 400,000 16,241,700 26,575,700 124,244 107,526 50, .300,000 198,600,000 2,495,568,650 660,650,750 5,172,749 660,292 840,660,000 101,410,000 42,700,000 207,200,000 2,673,001,000 734,786,250 7,711.952 1,184,554 496,305,000 1,805,010,000 240,200,000 128,490,000 88,600,000 582,800,000 4,771,.560,3.50 1,5.57,005,300 „10,O72,200 " 1,804,322 O 1,303,160,000 4,181,440,000 261,400,000 1,176,100,000 14,887,153,900 30,344,495 H 616,051,700 147.902,600 320,477 36,234 pi •564,193,.500 1,100,602,200 1,141,.8.54, .500 ,376,653,000 1,394,885,000 4,539,170,000 272,050,000 1,261,700,000 |l6,534,778,430 30,701,206 787,900 1,959,000 295,000 1,575,000 574,000 2,249,000 50,000 485,000 60,000 710,000 100,000 53,9.59,600 9,590,500 52,3^3,000 15,933,000 149,279,000 38,932,000 32,650,000 16,975,000 72,260,000 23,130,000 8,400,000 200,500 91.100 248,000 113,000 1,265,000 289,000 275,000 165,000 540,000 160.000 3,493,000 5,543,300 1,479,500 4,657,000 5,200,000 7,760,000 685,000 2,565,000 1,340,000 2,690,000 1,250,000 178,957,500 28,185,300 189,127,500 48,195,000 895,575,000 139,512,000 258,310,000 67,590,000 875,090,000 122,580,000 271,.5.38,400 57,207,400 238,370,500 76,121,500 933,999,000 175,459,000 215,500,000 61,720,000 363,806,900 86,243,300 .338,115,000 1,573,070,000 302,207,000 110,322,000 5. Total Liberty bonds out•564,193,.500 1,093,683,900 1,120,844,500 5,186,332,000 standing : 4J per cent Treasury bonds of 1947-1952— (a) Coupon (&) Registered D. Total bonds outstanding.. Notes: A. Treasury notes—coupon— 1. Series A-1924 2. Series B-1924 3. Series A-1925 4. Series B-1925 5: Series C 1925 6. Series A-1926 . 7. Series B-1926 8. Series A-1927 9. Series B-1927 B. Total notes outstanding 5,985,200 933,100 850,100 132,600 120,400 420,300 981,000 535,200 529,500 132,900 979,000 32,681,000 17,905,500 3,104,500 718,500 739,500 7 639, .500 5 648,500 648,500 7, 488,000 6, 406,000 10, 595,000 32, 933,500 104,817,000 174,941,000 15,380,000 52,2.50,000 43,094,000 47,571,000 31,106,000 68,697,000 69,019,000 40,166,000 47,240,000 131,922,000 531,065,000 » Denominations of "pre-war" bonds unavailable. «Includes issuable securities amounting to $87,150, denominations of which are unavailable. 81,510,000 10,215,000 335,710,000 22,020,000 10,650,000 24,300,000 85,600,000 84,620,000 124,490,000 174,570,000 77,600,000 138,260,000 178,290,000 134,820,000 130,-370,000 205,900,000 115,700,000 158,.500,000 307,000,000 173,100,000 154,400,000 315,300,000 192,100,000 127,200,000 202,700,000 311.088,600 380,681,100 598,355,900 310,979,800 4.31,296,500 616,737,200 424,486,500 362,577,900 667,991,650 442,625,000 1,248,920,000 1,744,000,000 4,104,195,150 45,950,000 46,725,000 60,455,000 21,105,000 50,310,000 43,105,000 49,465,000 44,040,000 81,470,000 in oP i ' t?j H 110,997 95,258 106,672 80,318 173,236 148,950. 93,569 122,876 2 366,490 2 1,29S,366 cn Interest-bearing bonds, notes, and certificates of indebtedness outstanding June 30, 1923, classified by issues and denominations—Continued. to Issue. m . Certificates of i n d e b t e d n e s s : A . T a x issues—coupon— I. Series TS-1923 2. Series TS2-1923 3. Series TD-1923 4. Series TM-1924 5. Series TD2-1923 B . Special C. T o t a l certificates of i n d e b t e d ness o u t s t a n d i n g $50 $100 $500 $1,000 $5,000 $10,000 $50,000 $100,000 Total. Pieces. $1,352, .500 .1,704,000 974,500 6,442,000 1,482,500 $10,734,000 9,040,000 5, .368,000 30,854,000 8,972,000 $20,110,000 16,815,000 10,450,000 38y700,000 16,250,000 $53,620,000 49,980,000 38,220,000 108,100,000 62,250,000 $93,300,000 76,500,000 140,500,000 137,100,000 92,600,000 $179,116,500 154,039,000 195,512,500 321,196,000 181,554,500 23,756 21,574 14,634 63,659 22,338 11,955,500 64,968,000 102,325,000 312,170,000 540,000,000 1,031,418,500 145,961 r v . T o t a l interest-bearing securities o u t $564,193,500 $1,133,283,200 1,258,627,000 5,972,686,000 1,939,835,000 6,100,260,000 $272,050,000 13.545.700.000 21,670,392,080 2 32,145,533 s t a n d i n g J u n e 30, 1923 o o 2 Includes issuable securities amounting to $87,150, denominations of which are available. H W > a in EXHIBIT 8. (See Exhibit 7 for bonds outstanding June 30, 1923.) REGISTERED INTEBEST-BEARING BONDS OUTSTANDING JUNE 30, 1923, CLASSIFIED BY ISSUES, AND NUMBER OF REGISTERED ACCOUNTS, AMOUNT OF INTEREST PAYABLE, AND NUMBER OF CHECKS DRAWN DURING THE FISCAL YEAR 1923. Registration. Issue. Outstanding J u n e 30, 1923. Outstanding J u n e 30, 1922. Increase. I. Bonds: A. " Pre-war" bonds— 1. 2 p e r c e n t consols of 1930 2. 4 p e r cent loan of 1925 3. 2 per c e n t P a n a m a Canal loan of 1916-1936 4. 2 p e r c e n t P a n a m a Canal loan of 1918-1938 5. 3 p e r cent P a n a m a Canal loan of 1961 , 6. 3 p e r c e n t conversion b o n d s of 1946-47 , 7. 2 \ per c e n t p o s t a l savings b o n d s (first t o t w e n t y - f o u r t h series) ". 8. T o t a l " p r e - w a r " b o n d s . B . Liberty Bonds— 1. F'irst L i b e r t y loan of 1932-1947— (a) F i r s t 3 ^ ' s (&) F i r s t 4's (c) F i r s t 4 i ' s (cf) F i r s t second 4 i ' s 2. Second L i b e r t y l o a n of 1927-1942(a) Second 4's (6) Second 4 i ' s 3. T h i r d L i b e r t y loan of 1928 4. F o u r t h L i b e r t y loan of 1933-19385. T o t a l L i b e r t y b o n d s Interest payable d u r i n g fiscal y e a r . N u m b e r of checks d r a w n d u r i n g fiscal year. in W o $598,648,250 110,173,750 48,948,180 25,875,920 44,088,100 10,164,400 $115,650 1,199,200 11,421,940 105,880 849,320,540 1,422,870 342,064,300 8,337,700 128,808,250 879,450 $598,763,900 111,372,950 48,948,180 25,876,060 43,923,800 10,166,400 7,776 2,762 966 551 1,728 99 $11,973,899.50 4,426,516.50 978,963.60 517,519.10 1,320,344. 25 304,932.00 31,321 11,341 3,874 2,209 7,085 11,527,820 3,785 286,242.25 8,904 164,300 850,579,110 17,667 19,808,417. 20 1,078,200 370,566,900 7,259,500 138,728,000 840,350 24,636 19,071 111,819 1,178 12,654,306.00 307,899. 00 5,754,597. 42 35,371. 45 51,881 40,4.56 228,470 2,457 5,114,800 9,957,600 26,575,700 660,650,750 734,786,250 1,557,005,300 75,415 335,520 674,512 951,798 1,163,301.00 27,918,700.61 30,015,305.71 64,122,435.18 162,892 691,441 1,425,383 2,006,208 16,189,700 3,498,412,750 2,193,977 142,001,916.37 4,609,188 147,902,600 13,953 2,638,403. 75 13.316 4,494,894,460 2,225,597 164,448,737.32 4,687,636 140 $164,300 ""'2*060" 28,502,600 '"9,'9i9,"756' 39,100 31,690,500 670,608,350 722,339,250 1,504,836,500 12,447,000 52,168,800 3,409,564,300 103,038,150 C. 4J p e r c e n t T r e a s u r y b o n d s of 1947-1952 II* T o t a l registered i n t e r e s t - b e a r i n g b o n d s o u t s t a n d i n g , e t c . Decrease. N u m b e r of accounts J u n e 30,1923. 147,902,600 4,258,884,840 252,363,620 16,354,000 pi o H W > in d Pi Ki 03 EXHIBIT 9. (See Exhibit 3, Item II-B.) cn INTEREST-BEARING BONDS, NOTES, AND CERTIFICATES OF INDEBTEDNESS RECEIVED FROM THE BUREAU OF ENGRAVING AND PRINTING DURING THE FISCAL YEAR ENDED JUNE 30, 1923. Issue. I. Bonds: A. "Pre-war" bonds—. 1. 2 per cent consols of 1930 2. 4 per cent loan of 1925 3. 2 per cent Panama Canal loan of 1916-1936 4. 2 per cent Panama Canal loan of 1918-1938 5. 3 per cent Panama Canal loan of 1961 6. 3 per cent conversion bonds of 1946-1947 7. 2v> per cent postal savings bonds (first to twenty-fourth B. Liberty bonds— 1. First Liberty loan of 1932-1947— (a) First 3 y s . . . . (6) First 4's (c) First 4i's (d) First second 4J's 2. Second Liberty Loan of 1927-1942— (a) Second 4's (b) Second 4i's 3. Third Liberty loan of 1928 4. Fourth Liberty loan of 1933-1938. C. 4J per cent Treasury bonds of 1947-1952 D. Total bonds received. II. Notes: . A. Victory Liberty loan of 1922-23— 1. Victory 4fs B. Treasury notes— 1. SeriesA-1924 2. Series B-1924 3. Series A-1925 4. Series B-1925 5. Series CJ-1925 6. Series A-1926 7. Series B-1926 8. Series A-1927 9. Series B-1927 C. Total notes received. Coupon. Registered. Total. Pieces. $17,500,000 $17,500,000 5,000 1 1,112,880 1 1,112,880 1 2,900 $68,000,000 3,500,000 26,200,000 1,713,750 95,000,000 163,000,000 3,500,000 26,200,000 1,713,750 68,950 500 67,300 900 320,000,000 290,000,000 250,000,000 1,050,500,000 5,000,000 51,500,000 90,500,000 259,000,000 325,000,000 341,500,000 340,500,000 1,309,500,000 92,350 104,000 130,000 748,900 2,009,913,750 I 519,612,880 1 2,529,526,630 1 1,220,800 O O a CO 368,000,000 368,000,000 100,000,000 100,000,000 "887," 500," 666 "887* 566,* 666' 116,000 1,000 '313*566 853,500,000 987,500,000 1,223,000,000 853,500,000 987,500,000 1,223,000,000 191,000 319,000 509,000 4,419,500,000 4,419,500,000 1,449,500 ! & i n . Certificates of indebtedness: A. Tax issues— 1. Series TS-1922 2. Series TS2-1922 3. Series TD-1922 4. Series TD2-1922 5. SeriesTM-1923 6. Series TM2-1923 7. SeriesTJ-1923 8. SeriesTS-1923 9. Series TS2-1923 10. Series TD-1923 11. Series TM-1924 12. Series TD2-1923.-. B. Loan issues— 1. Series B-1922 2. Series D-1922 . . . C. Pittman Act 1 D. Special > E. Total certificates of indebtedness received IV. Total interest-bearing securities received • . -- . 20,000,000 329,000,000 74,500,000 387,500,000 412,500,000 480,000,000 551,000,000 357,500,000 20,000,000 329,000,000 74,500,000 387,500,000 412,500,000 480,000,000 551,000,000 357,500,000 200 48,500 2.050 68,800 66,000 62,500 101,500 68,500 3,967,000 3,089,000,000 20 299 in . 3,967,000 3,089,000,000 2,612,000,000 3,092,967,000 5,704,967,000 418,369 9,041,413,750 3,612,579,880 12,653,993,630 3,088,669 o O 1 Interim certificates (exchangeable for postal savings bonds), Pittman certificates, and special certificates are received from the Bureau of Engraving and Printing in blank form, amounts to be filled in as the certificates are issued. The figures for postal savings bonds, shown above, include 1,300 interim certificates issued at a iace value of $744,889. Figures for Pittman and special certificates represent number and face value of the certificates issued. H d pi ox EXHIBIT 10. (See Exhibit 3, Items I I - A and II-G.) cn INTEREST-BEARING BONDS, NOTES, AND CERTIFICATES OF INDEBTEDNESS ON HAND JUNE 30, 1922, AND JUNE 30, 1923, AND SECURITIES ON HAND JUNE 30, 1923, WHICH HAVE CEASED TO BEAR INTEREST DURING THE FISCAL YEAR 1923, CLASSIFIED BY ISSUES. Division of Loans and Currency. June 30,1923. Issue. June 30,1922. D. Total bonds on hand II. Notes: A. Victory Liberty loan of 1922-23— 1;. Victory 4i's B. Treasury notes— 1. SeriesA-1924 2. Series B-1924 3. Series A-1925 4. Series B-1925 5. Series C-1925 June 30,1923. June 30,1922. Matured. I. Bonds: A. Pre-war" bonds— 1. 2 per cent consols of 1930 2. 4 per cent loan of 1925 3. 2 per cent Panama Canal loan of 1916-1936 4. 2 per cent Panama Canal loan of 1918-1938 5. 3 per cent Panama Canal loan of 1961 6. 3 per cent conversion bonds of 1946-47. . . 7. 2^ per cent postal savings bonds (first to twenty-fourth series). B. Liberty bonds— ' 1. First Liberty loan of 1932-1947— (a) First 3i's (6) First4's (c) First 4i's (d) First second 4J's 2. Second Liberty loan of 1927-1942— (a) Second 4's (6) Second 4i's : 3. Third Libery loan of 1928 4. Fourth Liberty loan of 1933-1938 C. 4J per cent Treasury bonds of 1947-1952. Federal reserve banks.^ Unmatured. Matured. Unmatured. O H $93,836,350 54,208,650 6,282,340 19,082,960 19,372,300 65,995,300 10,627,880 $76,979,300 40,680,800 3,670,660 18,184,300 15,614,600 64,257,000 10,940,600 879,778,850 459,540,000 1,101,854,850 41, 724,400 911,462,150 462,698,950 1,060,579,350 42,756, 750 $13,292,100 29,70.S,000 157,681,400 793,950 $12,-537,700 27,046,550 133,978,450 768,350 1,457,815,800 1,315,080,050 1,490,069,550 1,822,509,750 1,455,001,300 1,303,179,950 1,416,818,700 1,523,282,850 263,481,500 44,060,300 211,210,900 294,560,150 297,422,450 36,526,050 135,195,450 210,133,700 177,190, 750 101,850,100 8,837,779,030 8,669,588,760 1,048,729,250 835,227,100 753,784,000 319,127,900 230, 780,800 313,438,200 237,028,100 O 113,705,250 $133,983,050 250,120,900 166,130,800 316,578,200 188,240,600 185,277,700 61,394,900 77,669,900 124,181,300 154,051,950 $1,754,100 87,662,800 65,277,300 82,806,200 124,829,000 67,153,000 o CO 6. 7. 8. 9. SeriesA-1926 Series B-1926 Series A-1927 Series B - ] 927 471,820,400 2,325,979,400 C. T o t a l notes on h a n d i l l . Certificates of i n d e b t e d n e s s : A . T a x issues— 1. Series TS-1922 2. Series TS2-1922 3. Series TD-1922 4. Series TD2-1922 5. SeriesTM-1923 6. Series TM2-1923 7. Series TJ-1923 8. Series TS-1923. 9. Series TS2-1923 10. Series TD-1923 11. Series TM-1924 12. Series TD2-1923 B L o a n is.sues— 1. Series B-1922 2. Series D-1922 . . . . C. P i t t m a n Act . ; 173,844,800 2,492,294,300 704,849,100 1,754,100 69,030,500 72,586,000 64,469,500 66,913,000 96,178,000 100,000 100,000 1,000 5,000 5,000 5,000 349,000 88,321,500 79,533,500 80,596,500 42,772,000 37,072,000 : 30,241,000 55,659,000 . 207,952,000 120,362,000 .- _ 76,266,300 . 84,453,700 83,462,900 145,990,250 29,233,500 144,986,500 119,464,500 96,497,500 61,354,000 -.. . . D . T o t a l certificates of i n d e b t e d n e s s on h a n d I V . T o t a l securities on h a n d 133,983,050 468,785,300 164,050,000 438,598,500 314,512,300 686,860,500 11,850,618,930 133,983,050 817,901,450 in 43,032 500 57,539,000 71,652,000 63,526,500 80,963,000 63,315,500 71,933,000 -1,000 100,000 451,536,000 560,084,500 666,000 316,713,000 11,613,419,080 2,313,662,850 2,420,100 1,969,841,550 o pi H O H W »Includes Treasury booth. > d in pi K! cn Interest-bearing bonds, notes, and certificates of indebtedness on hand June 30, i§22, and June SO, 1923, and securities on hand June SO, 1923, which have ceased to bear interest during the fiscal year 1923, classified by issues—Continued. Pieces. Total. June 30,1922. June 30,1922. Matured. , Bonds; A. Pre-war'^ bonds— June 30,1923. June 30,1923. Issue. Ob Matured. Unmatured. Unmatured. $93,836,350 54,208,650 6,282,340 19,082,960 19,372,300 65,995,300 10,627,880 $76,979,300 40,680,800 3,670,660 18,184,300 15,614,600 64,257,000 10,940,600 8,937 18,536 3,430 5,613 64,748 31,450 67,358 8,030 15,960 2,767 5,282 63,484 31,247 68,722 923,999,850 489,745,500 1,194,557,800 43,525,100 1,183,779 766,969 918,982 53,090 1,158,533 746,095. 877,642 52,979 W (d) F i r s t second 4 i ' s 2. Second L i b e r t y loan of 1927-1942— (a) Second 4's (6) Second 4J's 3. T h i r d L i b e r t y loan of 1928 4. F o u r t h L i b e r t y loan of 1933-1938 C. 4J p e r cent T r e a s u r y b o n d s of 1947-1952 893,070,950 489,248,000 1,259,536,250 42, 518,350 1,501,876,100 1,526,290,950 1,784,629,700 2,119,932,200 1,491,527,3.50 1,438,375,400 1,626,952,400 1,700,473,600 365,331,600 1, 721,865 1,525,394 6,112,360 4,333,381 1,652,923 1,205,146 5,578,626 3,547,316 276,564 > a D. Total bonds on hand 9,886,508,280 9,504,815,860 16,815,892 15,291,316 1. 2 p e r cent consols of 1930 2. 4 p e r cent loan of 1925 3. 2 per cent P a n a m a Canal loan of 1916-1936 4. 2 p e r c e n t P a n a m a Canal loan of 1918-1938 5. 3 p e r cent P a n a m a Canal loan of 1961 6. 3 p e r cent conversion b o n d s of 1946-47 7. 2^ p e r cent postal savings b o n d s (first t o t w e n t y - f o u r t h series). B . L i b e r t y bonds— 1. F i r s t L i b e r t y loan of 1932-1947— (a) F i r s t 3^'s .' (6) First 4's (c) First4i's II. Notes: A. Victory Liberty loan of 1922-23— 1. Victory4|'s B . T r e a s u r y notes— 1. SeriesA-1924 2. Series B-1924 3. Series A-1925 4. Series B-1925 5. Series C-1925 6. SeriesA-1926 7. Series B-1926 O. pi »-3 O 72 867,490,250 380,522,800 308,450,700 437,619,500 391,080,050 645,665,200 3,638,814 $135,737,150 337,783,700 231,408,100 399,384,400 313,069,600 252,430,700 545,051,600 248,503,700 248, n 8 120, 788 245,919 157,688 137,649 768,175 238,677 105,476 222,813 131,376 112,562 118,549 72,412 C. T o t a l notes on h a n d . . . I I I . Certificates of i n d e b t e d n e s s : A . T a x issues— 1. Series TS-1922 2. Series TS2-1922 3. Series TD-1922 4= Series TD2-1922 5. SeriesTM-1923 6. Series TM2-1923 7. Series TJ-1923 •. 8. SeriesTS-1923 9. Series T S 2 - 1 9 2 3 . . . . 10. Series TD-1923 11. Series TM-1924 12. Series T D 2 - 1 9 2 3 . . . . B . L o a n issues— 1. Series B-1922 2. SeriesD-1922 C. P i t t m a n A ct D . T o t a l certificates of i n d e b t e d n e s s on h a n d I V . T o t a l securities on h a n d ^ 522,061,400 460,502,550 8. Series A-1927 9. Series B-1927 . . . 3,030,828,500 135,737,150 157,352,000 152,119,500 145,066.000 109,68-5,000 133,250,000 100,000 100,000 1,000 •5,000 5,000 5,000 349,000 85,900,000 3,310,195,750 4,548,976 768>i75 46,442 40,855 33,390 27,201 37,155 1 1 1 23,911 72,266,000 202,525,500 191,116,500 160,024,000 142,317,000 .\ 271,277,500 192,295,000 74,263 52,393 1,000 100,000 178,791 123> 777 1,304,433 i . 1 436 31,593 39,371 40,442 27,035 42,296 in O Pi H 1 1 1,246,945,000 666,000 768,249,000 335,610 444 180,737 O 14,164,281,780 136,403,150 13,583,260,610 21,700,478 768,619 16,776,486 H W > d in cn EXHIBIT 11. (See Exhibit 3, Item II, F-5.) Oi tJNiSSUED liJTEREST-BEARiNG BONDS, NOTES, AND CERTIFICATES OF INDEBTEDNESS DELIVERED TO THE REGISTER OF THE TREASURY DURING THE FISCAL YEAR 1923. By Division of Loans and Currency. Issue. I. Bonds; A. Pre-war " bonds— 1. 2 per cent consols of 1930 2. 4 per cent loan of 1925 : 3. 2 per cent Panama Canal loan of 1916-1936 4. 2 per cent Panama Canal loan of 1918-1938 5. 3 per cent Panama Canal loan of 1981 6. 3 per cent conversion bonds of 1916-47 7. 2h per cent postal savings bonds (first to twenty-fourth series). B. Liberty bonds— 1. First Liberty loan of 1932^1947— (a) First 3JL's (6) First 4's (c) First 4J's (d) First second 4^'s 2. Second Liberty loan of 1927-1942— (a) Second*4's. (6) Second 4^'s. '. 3. Third Liberty loan of 1938. '. 4. Fourth Liberty loan of 1933-1938 C. 4^ per cent Treasury bonds 1917-1952. D. Total bonds deUvered II. Notes: A. Victory Libertv loan of 1922-2.3— 1. Victory 44's .-. B . Treasury notes— 1. SenesA-1924 — 2. Series B-1924.... 3. Series A-1925 4. Series B-1925 ..• 5. Series C-1925... 6. SeriesA-1926 7. Series B-1926. 8. Series A-1927 9. Series B-1927 C; Total notes deUvered. : By Federal reserve banks .1 Total. Pieces. O pi H O $2,198,500 1,000 340,600 $1,650 581,100 3,764,250 4,500 $2,200,150 582,100 4,104,850 4,500 85 2,374 4.084 2,500 1,264,700 957,150 1,186,650 473,500 30,050 60,850 748,550 50 1,1.35,000 32,550 1, 325,550 1,705,700 1,186,700 1,608,500 59 482 899 578 ,229 6,424,600 6.326,000 12,750,600 9,799 W > O IP 672,137,350 108,751,950 778,889,300 2,728,118 15,000 16,000 50,000 1,120,000 11,013,000 14,286,000 2.000,000 4,982,300 8,417,000 2,100,000 300,000 - 1,120,000 11,013,000 14,286,000 2,000,000 4,982,300 8,432,000 2,116,000 350,000 1,536 6,227 1,387 653 2,901 723 1,774 672,218,350, 150,970,250 823,188,600 2,743,-327 m . Cerrificates of i n d e b t e d n e s s : A . T a x issues— 1. Series T S - 1 9 2 2 . . . . 2. Series TS2-1922. . 3. Series TD-1922 4. Series TD2-1922 5. Seri es TM-1923 6. Series TM2-I923 7. SeriesTJ-1923 8. Series TS-1923.. 9. Series TS2-1923 10. Series TD-1923 11. Series TM-1924 12. Series T D 2-1923 B . L o a n issues— 1. Series B - 1 9 2 2 . . ; 2. Series D-1922 , . . . 1 Includes Treasury booth. 88,321,500 71,533,500 63,096,500 31,872,000 31,567,000 115,281,000 16,121,000 . : 64,888,500 59,433,000 69.91.3,000 83,6.37,500 37,971,500 2,7.57,000 1,010,000 . .88,321,500 71,533,500 127,983,000 91,305,000 101,51.0,000 198,918,500 54,092,500 2,757,000 1,040,000' • . 18,18) 29,453 24,787 30,814 38,906 18,863 511 ibl ... ' . - .:....... C. T o t a l certificates of i n d e b t e d n e s s d e h v e r e d - . I V . T o t a l u n i s s u e d securities delivered : • '. • • ' '. '. 207,982,000 117,862,000 23,089,000 207,982,000 140,931,000 743,616,500 342,737,500 1,088.35-^,000 284.500 1,422,259,450 500,033,750 1,922,293,200 3,037,626 55,809 .37,980 IP O H W > IP CJ Pi • C5 EXHIBIT 12. SUMMARY OF TRANSACTIONS IN INTEREST-BEARING BONDS, NOTES, AND CERTIFICATES OF INDEBTEDNESS FOR THE FISCAL YEAR 1923. Account. I. Outstanding June 30,1922 II. Issued during the fiscal year 1923: A. Upon original subscriptions against cash received ^ B. Upon exchange, conversion, etc., for securities of equal par value retired1. Exchange— (a) Interim certificates (6) Registered for coupon (c) Coupon for registered (d) Of denominations (e) Temporary for permanent (/) Mutilated for perfect 2. Conversion 3. Transfer of ownership C. Upon adjudicated claims for replacement , b . Total issued during the fiscal year 1923 [IE. Retired during the fiscal year 1923: A. Account of redemption Purchases(a) Sinking fund (b) Repayment of loans to foreign Governments (c) Interest payments on obligations of foreign Governments. (d) Franchise tax receipts ..• (e) Proceeds of Treasury notes 2. Received for Federal estate taxes 3. Received for Federal income and profits taxes 4. Exchanges for— (a) Treasury bonds (b) Treasury notes (c) Certificates of indebtedness 5. Forfeitures 6. Gifts. 7. Prior to maturity or cah 8. At maturity or call 9. MisceUaneous receipts .''Pre-war" bonds. (See Exhibit 13.) Liberty bonds. Treasury bonds, and Victory notes. (See Exhibit 14.) $883,840,470 $17,072,795,950 29,760 763,962,300 56,221,330 11,500 65,200 345,847,800 466,134,800 1, 247,712.950 55,169,3.50 486,300 14,131,750 112,776,150 2,290,550 57,69]^ 400 3, 008,577,150 1,428,810 Treasury notes. (See Exhibit 15.) Certificates of indebtedness. (See Exhibit 16.) Total. $2,246,596,350 $1,828,787,500 $22,032,020,270 2,000,938,300 4,292,259,500 7,057,189,860 857,660,800 643,026,000 3,*io6" 3,967,000 2,8,58,602,200 4,939,252,500 200,000 256,321,300 32,140,000 . 68,752,950 6,675, 7.50 77,700 144,647,450 201, 883, 850 5, 497,450 44,300 44,150 74,070,500 1,301,548,500 110,400 65,200 345,847,800 467,563,610 2,748,399,750 55,169,350 489,400 14,131,750 172,964,480 2,302,050 156,000 5,087,719,500 O O w a 10,864,123,250 > 200,000 O 256,321,300 32,140,000 68,752,950 10,815,300 132,368,200 6,675,750 77,700 10,815,300 132, 368,200 to 144,647, 450 201,8&3,850 5,497, 450 44,300 200,150 74,070,500 6,389,268,000 110,400 IP B . A c c o u n t of exchange, conversion, etc., for securities of equal p a r v a l u e issued— 1. Exchange— (a) I n t e r i m certificates (6) Registered for coupon (c) Coupon for registered (d) Of d e n o m i n a t i o n s (e) T e m p o r a r y for p e r m a n e n t (/) M u t i l a t e d for perfect. 2. Conversion 3 . Transfer of ownership C. A c c o u n t loss or d e s t r u c t i o n (covered b y i n s u r a n c e or b o n d s of i n d e m n i t y ) 1,428,810 56,221.330 11,500 65,200 345,847,800 466,134, 800 1,247,712,950 55,169,350 486,300 14, ;i 31,750 112,778,150 2,290,550 857,660,800 643,026,000 3,'i66' Q (xaj rxQQ 65,200 345,847,800 467,563,610 2,748,399,750 55,169,350 489,400 14,131,750 172,954,480 2,302,050 57,861,640 4,336,429,150 1,001,003,400 5,734,712,500 11,130,006,690 I V . O u t s t a n d i n g J u n e 30,1923 D e d u c t interest-bearing d e b t w h i c h m a t u i e d d u r i n g y e a r . 883,670,230 15,744,913,950 93,835,750 4,104,195,150 1,033,327,500 1,909,000 21,766,136,830 95,744,750 in V . O u t s t a n d i n g J u n e 30,1923 (per p u b l i c d e b t s t a t e m e n t ) 883,670,230 15,651,108,200 4,104,195,150 1,031,418,500 21,670,392,080 O D . T o t a l retired d u r i n g t h e fiscal year 1923 1 Includes r e d e m p t i o n s , t h e proceeds of w h i c h h a v e been a p p l i e d as cash s u b s c r i p t i o n s . O ^^ H W H W > in ^ EXHIBIT 13. (See Exhibit 12.) TRANSACTIONS IN *<PRE-WAR" BONDS DURING THE FISCAL YEAR 1923. P a n a m a Canal loans. Account. I . O u t s t a n d i n g J u n e 30,1922 I I . I s s u e d d u r i n g t h e fiscal year 1923: » A . U p o n original subscriptions against cash received B . U p o n exchange, conversion, e t c . , for securiries of eq nal p a r v a l u e r e t i r e d . 1. E x c h a n g e — (a) C o u p o n for registered (6) M u t i l a t e d for perfect 2. Transfer of ownership C. U p o n adjudicated claims for r e p l a c e m e n t D . T o t a l issued d u r i n g t h e fiscal y e a r 1923 I I I . R e t i r e d d u r i n g t h e fiscal year 1923: A . Account of r e d e m p t i o n B . Account of e x c h a n g e , conversion, etc., for securities of e q u a l p a r value issued. 1. E x c h a n g e — (a) Coupon for r e g i s t e r e d . . . . . (&) M u t i l a t e d for perfect 2. Transfer of ownership C. A c c o u n t of loss or d e s t r u c t i o n (covered b y i n s u r a n c e or b o n d s of i n d e m n i t y ) D . T o t a l retired d u r i n g t h e fiscal year 1923 I V . O u t s t a n d i n g J u n e 30, 1923 (per p u b l i c d e b t s t a t e m e n t ) , . . . 2 p e r cent consols of 1930. 4 per cent loan of 1925. $.599,724,050 $118,489,900 115,650 1,199,200 34,241,400 12,328,550 100 34,357,050 13,.527,850 2 per cent, of 1916-1936. 2 per cent, of 1918-1938. 3 per c e n t , of 1961. 3 per c e n t conversion b o n d s of 1945-1947. $48,954,180 $25,947,400 $50,000,000 $28,894,500 2^ p e r c e n t postal savmgs bonds (first t o twenty-fourth series). $11,830,440 $883,840,470 29,760 29,760 hj O O 140 35,700 2,000 76,120 1,428,810 2,611,680 898,520 3,712,000 10,000 1,736,300 692,880 1,400 56,221,330 11,500 2,611,680 898,660 3,757,700 1,738,-300 800,160 57 691 400 200,000 115,650 1,199,200 34,241,400 • 12,328,550 34,3.57,0.50 599,724,050 Total. 200,000 140. 35,700 2,000 2,611,680 898,520 3,712,000 1,736,300 1,400 11,500 13,.527,a50 2.611,680 898.660 3,9.57,700 1,738, .300 770,400 57,861,640 118,489,900 48,954,180 25,947,400 49,800,000 28,894,500 11,860,200 883,670,230 100 10,000 ' 76,120 1,428,810 692,880 56,221,330 pi H. H > M o w IP EXHIBIT 14. (See Exhibit 12.) TRANSACTIONS IN LIBERTY BONDS, TREASURY BONDS, AND VICTORY NOTES DURING THCB FISCAL YEAR 1923. Second L i b e r t y l o a n of 1927-42. Furst L i b e r t y l o a n of 1932-47. Account. F i r s t 3^'s. I . O u t s t a n d i n g J u n e 30,1922 $1,410,002,050 I I . I s s u e d d u r i n g t h e fiscal year 1923: A . U p o n original s u b s c r i p t i o n s a g a i n s t cash received B . U p o n exchange, conversion, etc., forsecurities of e q u a l p a r v a l u e retired— 1. E x c h a n g e — (c) I n t e r i m certificates (6) Registered for c o u p o n (c) C o u p o n for registered . . (d) Of d e n o m i n a t i o n s .' (e) T e m p o r a r y for p e r m a n e n t . . . . (/) M u t i l a t e d for perfect 1 2, Conversion . . ... 3. Transfer of ownership C. U p o n adjii'dirated claiTnsforrpplaceTnent . . . . . First 4i's. $12,523,500 $525,826,050 F i r s t second 4i's. $3,492,150 Second 4's. $54,420,800 Secoiid 4 i ' s . $3,256,176,250 o • 65,200 29,325,000 57,827,600 24,955,600 D . T o t a l issued d u r i n g t h e fiscal y e a r 1923 i n . Reth-ed d u r i n g t h e fiscal y e a r 1923: A . A c c o u n t of r e d e m p t i o n — ' 1. Purchases— (a) Sinking fund (6) R e p a y m e n t of loans t o foreign G o v e r n m e n t s (c) I n t e r e s t p a y m e n t s on obligations of foreign G o v e r n m e n t s . (d) F r a n c h i s e t a x receipts (e) B o n d p u r c h a s e fund 2. Received for F e d e r a l e s t a t e t a x e s 3. Received for F e d e r a l i n c o m e a n d profits t a x e s 4. E x c h a n g e s for— (a) T r e a s u r y b o n d s of 1947-52. . (6) T r e a s u r y notes— • 1. Series A-1925 2. Series B-1925 3. Series C-1925 4 Series A-1926 5. Series B-1926 6. Series A-1927 F i r s t 4's. 9,674,606 16 150 871,350 100 148,500 1,220 500 400 14,969 400 12,550 5,200 18,750 18,768,850 47,397,650 652,650 18,600 2,550,450 3,923,250 52,650 127,171,500 2,264 800 82,438,700 4,458,950 10,600 604,050 4,844,200 5,300 42,500 2,800 23,800 48,000 66,759,900 58,489,800 224,428,350 3,035,550 62,400 11,581,300 13,218,550 204,300 574,100 9,994,900 375,780,150 107,90068,800 341,650 10,450 H o H W H 1,000 8,000 15,000 69,700 16,000 6,000 40,540,000 441,000 68,502,950 5,000 1,915,750 • 1 Counter entry; deduct. Ol Transactions in Liberty bonds, Treasury bonds, and Victory notes during the fiscal year 1923—Continued. First Liberty loan of 1932-47. Aecoont. First 4's. First 3J's. III. Retired during the fiscal year 1923—Contmued. A. Account of redemption—Continued. 4. Exchanges for—Continued. (c) Certificates of indebtedness— 1: Series TD-1923 2. Series TM2-1923 3. Series TM-1924 4. Series TS2-1923 5. Forfeitures 6. Gifts 7. Prior to maturity or call— (a) July 5, 1922, and Dec. 1,1922 (6) July 25, 1922 8. At maturity or call— (a) Dec. 15,1922 (6) May20,1923 9. Miscellaneous receipts B. Account of exchange, conversion, etc., for securities of equal par value issued— 1. Exchange— (c) Interim certificates i (6) Registered for coupon (c) Coupon for registered (<f) Of denominations (/?) Temporary for permanent (/) Mutilated for perfect 2. Conversion.: 3. Transfer of o\\Tiership C. Account loss or destruction (covered by insurance or bonds of indemnity). D. Total retired during fiscal year 1923 iV. Outstanding June 30,1923 Fu-st 4i's. Gi Second Liberty loan of 1927-42. First second 4i's. Second 4's. Second 4i's. . $3,000 $200 $2,650 $100 $25,050 50 o pi O 108,350 65,200 29,325,000 57,827,600 24,955,600 H-l 9,074,600 18,768,850 47,397,650 652,650 18,600 $107,900 68,800 341,650 10,450 3,923,250 52,650 42,500 2,800 14,969,400 12,550 871,350 100 148,500^ 1,220,500 400. 2,550,450 5,200 18,750 127,174,500 4,816,450 79,963,600 574,100 21,598,300 475,737,000 1,409,999,050 9,971,850 528,301,150 3,492,150 42,817,400 3,156,219,400 16,150 • 4,458,950 10,600 . 604,050 4,844,200 5,300 11,581,300 23,800 48,0p0 66,759,900 56,489,800 224,428,350 3,035,550 62,400 13,218,550 204,300 > o in Account. Third 4i's. Fourth 4i's. 4f p e r c e n t 4^ p e r cent Treasury b o n d s . Victory n o t e s . Total. • I . O u t s t a n d i n g J u n e 30, 1922 $3,473,788,000 I I . I s s u e d d u r i n g t h e fiscal year 1923: A . U p o n original s u b s c r i p t i o n s against cash received B . U p o n exchange, conversion, etc., for securities of equal p a r v a l u e retired— 1. E x c h a n g e — (a) I n t e r i m certificates (6) Registered for coupon (c) Coupon for registered (d) Of d e n o m i n a t i o n s (e) T e m p o r a r y for p e r m a n e n t (/) M u t i l a t e d for perfect 2. Conversion 3. Transfer of o w n e r s h i p C. U p o n adjudicated claims for r e p l a c e m e n t . D . T o t a l issued d u r i n g t h e fiscal year 1923 73,851,100 86,407,050 266,007,350 . 13,730,950 84,150 98,485,450 151,123,850 378,080,050 31,675,050 219,5.50 $17,072,795,950 $763,962,300 $763, 962,300 . I I I . R e t i r e d d u r i n g t h e fiscal year 1923: A . Account 0 f redemption— 1. Purchases— (a) Sinking fund (&) R e p a y m e n t of loans t o foreign G o v e r n m e n t s (c) I n t e r e s t p a y m e n t s on obligations of foreign G o v e r n m e n t s (d) F r a n c h i s e t a x receipts (e) B o n d p u r c h a s e fund • 2. Received for Federal e s t a t e taxes 3. Received for Federal income a n d profits taxes 4. E x c h a n g e s for— (a) T r e a s u r v b o n d s of 1947-52 (6) T r e a s u r y notes— 1. Series A-1925 : 2. Series B-1925 3. Series C-1925 4. SeriesA-1926 . 5. Series B-1926 6. Series A-1927 (c) Certificates of indebtedness— 1. Series T D - 1 9 2 3 . . . . . . . . . 2. Series TM2-1923 3. Series T M - 1 9 2 4 . . . . . 4. Series TS2-1923 5. Forfeitures.. 6. Gifts .' : $1,991,183,400 .$6,345,383,7.50 1, 569,500 94, 776, 000 77,067,900 61,.344, 050 662,150 230,681,850 12,800 66,950 65,200 345,847,800 . 466,134,800 1, 247,712,950 55,169,350 486,300 26,351,656 52,387,660 5,166,666 • 439,950 1,165,900 11,400 334,250 14,131,750 112,776,150 2,290,550 460,871,600 711,136,850 942,559,900 295,784,650 3,008,577,150 32, 540, 000 31,693,000 13,70.3,000 169,513,300 256,321,300 32,140,000 68,752,950 109,200 76,700 6, 675,750 77,700 144, 647,450 144,647,450 9,811,800 46,005,100 9,811,800 46,005,100 141,519,050 4,547,900 141,519,060 4,547,900 1,221,750 1,795,400 2,428,600 51,700 500 1, 221,750 1,795,400 2,428,600 51,700 44^300 44,150 2,695,460 250,000 1,723,850 500 2,857,250 500 .. 6,500 36,050 6,366 50 8,666 o O Transactions in Liberty bonds, Treasury bonds, and Victory notes during the fiscal year 1923—Continued. 00 Account. T h k d 4i's. I I I . R e t i r e d d u r i n g t h e fiscal y e a r 1923—Continued. A . A c c o u n t of r e d e m p t i o n — C o n t i n u e d . 7. P r i o r t o m a t u r i t y or caU— (a) J u l y 5, 1922, a n d D e c . 1,1922 (6) J u l y 2.5, 1922 8. A t m a t u r i t y or call— (a) D e c . 15, 1922 (6) May 20, 1923. 9. Miscellaneous receipts : B . Account of exchange, conversion, etc., for securities of e q u a l p a r v a l u e issued— 1. E x c h a n g e — (a) I n t e r i m certificates (6) Registered for c o u p o n — : (c) Coupon for registered , (d) Of d e n o m i n a t i o n s (e) T e m p o r a r y for p e r m a n e n t (/) M u t i l a t e d for perfect 2. Conversion 3. Transfer of o w n e r s h i p . C. Account loss or destruction (covered b y insurance or b o n d s of i d e m n i t y ) D . T o t a l retired d u r i n g fiscal year 1923 I V . O u t s t a n d i n g J u n e 30, 1923. , , Fourth 4i's. 4 | per cent 4J p e r cent. Treasury bonds. Victory notes. Total. $57,327,000 16,743, 500 $57,327,000 16,743,500 616,097,150 685,451,350 200 616,097,150 685,451,350 110,400 61,344,050 662,150 230,681,850 65,200 345,847,800 466,134,800 1,247, 712,950 55,169,350 850 1,000 73,851,100 86,-407,050 266,007,350 13,730,950 84,150 98, 485,450 151,123. 850 376,080,050 31,675,050 219,550 1,569,500 94,776,000 77,067,900 12,800 66,950 4.R6,300 20,351,050 439,950 52,387,000 1,165,900 5,160,000 11,400 2,695,400 334,250 14,131,750 112,776,150 2,290,550 H 178,605, 500 2,193,132,300 4,336,429,150 ^ 93,835, 750 15,744,943,950 526,872, .350 727,954,950 3,407,787,250 6,328,565,650 763,954,300 O % o > • o in (See Hixhibit 12.) TRANSACTIONS IN TREASURY NOTES DURING THE FISCAL YEAR 1923. Account. I . O u t s t a n d i n g J u n e 30,1922. I I . I s s u e d d u r i n g t h e fiscal year 1923: A . U p o n original subscriptions against cash received B . U p o n exchange, conversion, etc., for securities of e q u a l p a r v a l u e retired— 1. E x c h a n g e — (a) Of d e n o m i n a t i o n s ^.. (6) M u t i l a t e d for perfect : C. U p o n adjudicated claims for r e n l a c e m e n t D . T o t a l issued d u r i n g t h e fiscal year 1923 I I I . R e t i r e d d u r i n g t h e fiscal y e a r 1923: A . A c c o u n t of r e d e m p t i o n — 1. Purchases— (a) F r a n c h i s e t a x receipts (5) Proceeds of Treasm'y n o t e s 2. R e c e i v e d for F e d e r a l e s t a t e t a x e s 3. Forfeitures 4. Gifts 5. Miscehaneous receipts B . Account of exchange, conversion, etc., for securities of e q u a l p a r v a l u e issued— 1. E x c h a n g e — (a) Of d e n o m i n a t i o n s ^ (&) M u t i l a t e d for perfect C. Account loss or d e s t r u c t i o n (covered b y i n s u r a n c e or b o n d s of i n d e m n i t y ) D . T o t a l retired d u r m g fiscal year 1923 I V . O u t s t a n d i n g J u n e 30,1923 Series A-1924. Series B-1924. Series A-1925. Series C-1925. $311,191,600 $390,706,100 $601,599,500 $325,329,450 Series A-1926. Series B-1926. Series A-1927. Series B-1927. Total. $2,246,598,350 $617,769,700 $486,940,100 $366,981,500 $687,991,650 2,000,938,300 9,811,850 $469,213,200 in O 37,444,000 53,448,400 117,471,400 37,444,000 53,448,400 117,471,400 103,000 .. 10,000,000 3,215,300 300 25,000 28,000 96,357,100 94,155,800 857,660,800 3,100 64,003,000 163,866,100 75,516,100 155,398,900 COO 2,500 73,814,850 633,079,300 75,516,700 642,341,500 463,338,600 762,147,450 2,858,602,200 4,800,000 19,361,500 37,916,700 1,000,000 32,500 1,800,000 60,653,600 o 10,815,300 132,368,200 4,403,600 156,000 > in Pi 37,444,000 53,448,400 117,471,400 64,003,000 163,866,100 75,516,100 155,398,900 600 2,500 37,547,000 63,473,400 120,715,000 88,164,500 201,782,800 76,549,200 217,855,000 100,760,700 96,357,100 94,155,800 857,660,800 3,100 94,155,800 1,001,003,400 311,088,600 380,681,100 598,355,900 310,979,800 431,298,500 616.7.'^7.200 424,486,500 382,577,900 667,991,650 4,104,195,150 1 I n c l u d e s dehveries against receipts b y other F e d e r a l reserve b a n k s . Series B-1925. * I n c l u d e s receipts against deliveries b y other F e d e r a l reserve b a n k s . CD EXHIBIT 16. (See Exhibit 12.) TBAHrSACTlONS IN CERTIFICATES OF INDEBTEDNESS DtTBING THE FISCAL YEAR 1923. Series TS-1922. Account. i. Outstanding June 30,1922 D. Total issued during the fiscal year 1923.. III. Retired during .the fiscal year 1923: A. Account of redemption— 1. Prior to maturity or cah 2. At maturity or call B. Account of exchange, conversion, etc., for securities of equal par value issued— 1. Exchange— (a) Of denominations 2 (&) Mutilated for perfect 2. Transfer of ownership C. Account loss or destruction (covered by insurance or bonds of indemnity) D. Total retired during fiscal year 1923 Series TD-1922. Series TD2-1922. Series TM-1923. Series TM2-1923. $182,871,000 $179,691,500 $243,544,000 $200,000,000 $266,250,000 II. Issued during the fiscal year 1923: A. Upon original subscription against cash received . B. Upon exchange, conversion, etc., for securities of equal par value retired— 1. Exchange— (a) Of denominations i (6) Mutilated for perfect 2. Transfer of ownership C. Upon adjudicated claims for replacement TV. Outstanding .Tnne 30, 1923. , Series TS2-1922. , Series TJ-1923. Series TS-1923. $273,000,000 Series TS2-1923. ! $227 000 000 si .54 252 000 $113,744,500 5,348,500 13,722,500 26,342,000 28,243,500 45,988,500 16,332,000 130,443,500 117,174,000 55 722 500 5,348,500 13,722,500 26,342,000 26,243,500 45,988,500 130,076,500 130,443,500 344,174,000 209 974 500 182,821,000 179,657,500 243,389,000 199,989,000 265,810,500 113,699,000 271,865,000 47,883,500 213 000 5,348,500 13,722,500 26,342,000 26,243,500 45,988,500 16,332,000 130,443,500 117,174,000 55,722 500 188,169,500 193,380,000 269,731,000 228,232,500 311,799,000 130,031,000 402,308,500 165,057,500 55,935,500 50,000 34,000 155,000 11,000 439,500 45,500 1,135,000 179,116,500 154,039,000 o o W > o CO Account. I O u t s t a n d i n g J u n e 30,1922. Series TD-1923. . Series TM-1924. Scries B-1922. Series TD2-1922. D . T o t a l issued d u r i n g t h e fiscal year 1 9 2 3 . . . D . T o t a l r e t i r e d d u r i n g fiscal year 1923 I V . O u t s t a n d i n g J u n e 30,1923 Pittman Act. Special. $259,431,000 $150,000,000 $74,000,000 .... I I . I s s u e d d u r i n g t h e fiscal year 1923: $197,233, 500 $321,196,000 $189,833,500 A . U p o n original s u b s c r i p t i o n against cash received B . U p o n e x c h a n g e , conversion, etc., for securities of e q u a l pai v a l u e retired— 1. E x c h a n g e — (a) Of d e n o m i n a t i o n s ^ 25,349,500 69,780,000 90,690,000 (b) M u t i l a t e d for perfect ... 2. Transfer of ownership I I I . R e t i r e d d u r i n g t h e fiscal year 1923: A . A c c o u n t of r e d e m p t i o n — 1. P r i o r t o m a t u r i t y or cah 2. A t m a t u r i t y or cah ... B . A c c o u n t of exchange, conversion, etc., for securities of equal . p a r v a l u e issued— 1. E x c h a n g e — (a) Of d e n o m i n a t i o n s 2 (6) MutUated for perfect 2. Transfer of o w n e r s h i p C. A c c o u n t loss or d e s t r u c t i o n (covered b y i n s u r a n c e or b o n d s of i n d e m n i t y ) Series D-1922. 287,923,500 390,976,000 215,183,000 Total. $1,828,787,500 $3,089,000,000 1,860, .500 643 028 000 18,029,000 3,967,000 1,860,500 18,029,000 3,967,000 , 3,089,000,000 3,967,000 4,939, 252, 500 H > Pi 1,721,000 90,690,000 69,780,000 S, 279,000 259,393,000 149,999,000 25,349, .500 1,860,500 18,029,000 74,000,000 3,089,666, m 92,411,000 69,780,000 33,628,500 195,512,500 321,196,000 181 554 500 ! 231,253,500 168,028,000 :^R ono 1,000 I Includes dehveries against receipts by other Federal reserve banks; 5 087 719 .500 043,026,000 3,987,000 77,967.000 3,667,000 3,089,000,000 ; 4, 292, 259,500 2 Includes receipts against deliveries by other Federal reserve banks. 5,734,712,500 1,033,327,-500 > d EXHIBIT 17. to TRANSACTIONS IN TREASURY (WAR) SAVINGS SECURITIES DURING THE FISCAL YEAR 1923. Series. N e w issue, Dec. 15,1921. Account. 1918 1920 1919 Thrift a n d Treasury savings • stamps, unclassified sales, etc. I s s u e o f S e p t . 30, 1922. 1921 1921 1922 1922 1923 I . O u t s t a n d m g J u n e 30, 1922 i . . $515,871,847.03 $54,397,934.19 $25,039,234.21 $15,283,549.61 $1,801,469.33 $58,226,872.58 P l u s accrued discount liabihties (actual a n d con117,113,167. 32 8,967,146.18 " 2,806,074.49 tingent) $8,394,410.50 $879,015,317.45 ' T o t a l value of outstanding securities J u n e 30 1922 11. Issued d u r i n g fiscal year 1923: A . Cash s u b s c r i p t i o n s . B . Accrued discount credited as p u b lic-debt r e c e i p t s . . C. Accrued . discount n o t credited as pubhc-debt receipts • 2 23,509.55 2 12,724.47 3 611,691.54 8,394,410. 50 807 901 705 44 3 200,910.67 3 53,806,267.42 $19,101,818. 00 $123,059, 544. 88 2, < 111, 551.14 196,709,664.60 101,342. 05 3,679,116.35 295,777.60 1,203,907. 55 2,190,487.77 947,949.92 1,429,366. 59 11,387,698.07 2,213,997.32 930,674.39 2,041,058.13 302,252.72 57,485,383.77 19,397,595.60 124,263,452.43 11. Retired d u r i n g t h e fiscal year 1923: A. Account of r e d e m p tion— 1. Prior to m a 7,529,987. 42 turity 2! A t m a t u r i t y . . 605,895,980.00 B. Reimbursements to agents for unsold securities 3,899,105. 72 2,921,096.61 2,494,537. 00 199,742. 40 10,498,843. 05 •• • 15,950,753.14 1,844,361.45 hj O W H O H 5,280,14.3.55 • 11,382,948.86 D . T o t a l issued during t h e fiscal year 1923.. . 128,886,387.99 " 1 632,985,014.35 63,365,080. 37 27,845,308. 70 15,283,549.61 1,801,469,33 58,226,872.58 2 4,749. 21 Total. 1 < i l l , 551.14; 217,940,581.29 3,596,338. 85 2,675,380.75 35,457,393.25 605,895,980.00 2,449. 50 2,449. 50 > o IP C. Total rp.tired during t h e fiscal year 613,425,987.42 I V . O u t s t a n d i n g J u n e 30, 1923 ^ . . P l u s accrued discount liabilities T o t a l v a l u e of outs t a n d i n g securities J u n e 30, 1923 3, 899,105. 72 2,921,096. 61 2,494, .537. 00 199,742. 40 10,496,843.05 1,644,361.45 3,596,338. 85 2,677,830. 25 641.35.5,822.75 50,522,338. 02 22,130,862. 07 13,400,704.15 1,903,979.65 105,215,413. 30 17,753,234.15 120,667,113.58 5,805,029.11 337,198,674. 03 30,946,745.00 11,157,833.95 3,754,024. 41 1,429,366. 59 30,946,745. 00 61,679,971.97 25,884,886.48 14,830,070.74 1,903,9^9.65 105,215,413. 30 17,753,234.15 120,667,113.58 5,605,029.1] 3S4,486,443. 98 1 Series 1918, 1919, and 1920 were on basis of sales reports; Series 1921, new issue, and Series 1922, new issue, were on basis of Treasurer's net cash receipts, 2 Adjustments in sales reports subsequent to June 30, 1922. 3 Adjustments of differences between Treasurer's net cash receipts and sales reports taken up as cash subscriptions during fiscal year, ^ Counter entry; deduct, 6 Series 1923 is on basis of Treasurer's net cash receipts; all other series are ou basis of sales reports. 47,287, 769. 95 in o W > pi H W > in d EXHIBIT 18. LIBERTY BOND AND VICTORY NOTE CONVERSIONS FROM NOVEMBER 15, 1917, TO JUNE 30, 1 9 2 3 . Converted into— Issue. Original issue. Issued oil conversion. • First 3i's F i r s t 4's First 4i's F i r s t second 4J's Second 4's Second 44's T h i r d 4^'s F o u r t h 4Vs V i c t o r y 3f's V i c t o r y 4f's i$l, 989,455,550 4,175,650,050 6,964,581,100 672,585,100 3,822,787,900 424,886,750 505,068,900 Total 21,432,924,700 5,737,909,500 F i r s t 4's. First 4 f s . $568,318,450 $7, 570, 550 542,828,550 $568,318,450 550,397,100 3,492,150 F i r s t second 4i's. Redeemed to J u n e 30, 1923. Second 4^'s. V i c t o r y 3 i ' s . V i c t o r y 4f's. .$3,492,150 $75,350 15,520,050 22,095,950 $3,685,966,150 3,807,865,000 3,685,968,150 $505,068, 900 $424,666, 750 588,318,450 550, 397,100 3,4.92,150 3,685,966,150 424,666,750 505,068,900 Outstanding J u n e 30, 1923. 79,081,450 529,746,750 767,862, 800 636,015,450 591,688, 300 3,809,354,300 $1,409,999,050 9,971,850 528,301,150 3,492,150 42, 817,400 3,156,219,400 3,407,787,250 6,328,565,850 2 514,650 2 93,835,750 6,451,420,400 14,981, 504,300 o Pi O H-i ^ Includes full-paid interim certificates not exchanged for 3i per cent bonds. 2 Now included in matured debt. > o IP EXHIBIT 19. CERTIFICATES OF INDEBTEDNESS, TOTAL ISSUES AND THE AMOUNT ISSUED THROUGH EACH F E D E R A L R E S E R V E BANK FROM JULY 1, 1922, TO OCTOBER 3 1 , 1923. Federal reserve district. D a t e of issue. Authorizing act a n d series. Issued i n a n t i c i p a t i o n of i n c o m e a n d taxes—1923: Sept. 24,1917, as a m e n d e d — Series TM2-1923 Series TS-1923 Series TS2-1923 Series TD-1923 Series TD2-1923 D a t e of maturity. Boston. N e w York. Philadelphia. Cleveland. Richmond. Atlanta. in bj o pi P e r cent. Dec. Sept. Mar. Dec. June 15,1922 15,1922 15,1923 15,1922 15,1923 Mar. 15,1923 Sept. 15,1923 do Dec. 15,1923 do $113,744,500 $13,266,000 227,000,000 17,320,000 154,252,000 10,366,000 6,248,000 197,233,500 189,833,500 22,480,000 $69,682,500 94,840,000 62,789,000 132,289,500 74,855,500 $1,644,000 14,120,000 8,001,000 4,641,500 16,189,500 $6,313,000 18,120,000 10,817,500 10,559,000 8,895,500 $1,833,000 6,920,000 4,495,500 2,275,500 6,095,500 $888,500 5,840,000 6,390,500 3,177,000 7,579,500 69,680,000 434,456,500 44,596,000 54,705,000 21,619,500 23,875,500 882,063,500 profits Mar. 15,1923 Sept. 15,1923 Mar. 15,1924 ....do 321,196,000 18,042,000 249; 750,500 30,693,000 118,685,500 78,348,500 30,281,500 16,535,000 26,687,000 23,405,500 11,269,500 9,053,000 11,395,500 9,032,500 48,735,000 197,034,000 46,816,500 50,092,500 20,322,500 20,428,000 1,453,010,000 118,415,000 631,490,500 91,412,500 104,797,500 41,942,000 44,303,500 1,238,500,000 178,000,000 375,000,000 132,500,000 54,500,000 570,946,500 Grand total. Special s h o r t - t e r m issues: Sept. 24, 1917, as a m e n d e d , A p r . 4, 1918, a n d Mar 3, 1919 > pi y< o ^^ H Total Total amount. profits Total.. Issued i n a n t i c i p a t i o n of income a n d taxes—1924: Sept. 24,1917, as a m e n d e d — Series TM-1924 Series TM2-1924 Rate. Various. Various. V a r i o u s 3,188,500,000 H Pi > in d -J Certificates of indebtedness, total issues and the amount issued through each Federal reserve bank from July 1, 1922, to October 3 1 , 1923—Continued. 05 Authorizing act a n d series. 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 — 1923: Sept. 24,1917. as a m e n d e d — Series TAi2-1923 Series TS-1923 Series T S ^ 1 9 2 3 Series TD-1923 Series TD2-1923 D a t e of issue. D a t e of maturity. 15,1922 15,1922 15,1923 15,1922 15,1923 Mar. 15,1923 Sept. 35,1923 do.. Dec. 15,1923 ....do St. Louis. 3^ 4i $3, .521,000 28,000,000 14,005,000 20,768,000 21,839,500 $945,500 8,000,000 4,049,000 4,846,500 5,699,500 .$497,500 6,920,000 4,893,000 1,621,500 5,323,500 $2,189,500 8,000,000 5,683,500 3,216,500 3,381,000 $4,889,500 4,800,000 S, 187,000 3,002,000 4,576,500 $8,074,500 14,120,000 14,575,000 4,588,500 12,918,000 8,133,500 23,540,500 19,255,500 22,470,500 25,455,000 54,276,000 I Pi Mar. 15,1923 Sept. 15,1923 Mar. 15,1924 ....do Grand total. Chicago. Treasury Department. o Total Special s h o r t - t e r m issues: Sept. 24, 1917, as a m e n d e d . .'Vpr. 4. 1918, a n d Mar 3, 1919. Dallas. San F r a n cisco. P e r cent. Dec. Sept. Mar. Dec. June Total.. Issued i n a n t i c i p a t i o n of income a n d profits taxes— 1924: Sept. 24,1917. as a m e n d e d — Series TM-1924 Series TM2-1924 Rate. Kansas City. Minneapohs. 34,777,500 32,792,500 14,999,500 9,399,500 8,496,500 8,179,000 12,497,500 5,463,000 14,353,500 10,211,000 19,710,500 18,638,000 o H 67,570,000 24,399,000 14,675,500 17,960,500 24,564,500 38,348,500 155,703,500 47,939,500 33,931,000 40,431,000 50,019,500 92,624,500 V a r i o u s . 489,500,000 140,500,000 58,500,000 98,500,000 24,000,000 224,000,000 ^^ Various. Various. M > Q IP EXHIBIT 20. TREASURY NOTES ISSUED THROUGH EACH FEDERAL R E S E R V E BANK AND THE TREASURY DEPARTMENT FROM JULY 1, 1922, to OCTOBER 3 1 , 1923. 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 C-1925 Series B-1926 Series A-1927 Series B-1927 D a t e of issue. D a t e of maturity. Rate. Total amount. Boston. New York. Phiiadeiphia. Cleveland. Richmond. Atlanta. $489, 213,200 486,940,100 366,981,500 668,201, 400 $29,826,800 37,096,800 32,151,000 58,653,500 $147,021,700 198,949,200 131,411,400 262,491,600 $47,063,400 32,759,500 35, 479,500 48,314,300 $43,673,700 45, 573,000 23,319,200 53,084,000 $15,781,600 13,763,800 18,246,100 19,853, 500 $16,319,900 11,391,200 10,046,300 18,393,600 1,991,336,200 157,727,900 737,873,900 163,616,700 165,649,900 67,645,000 56,151, 000 P e r cent. D e c . 15,1922 J u n e A u g . 1,1922 S e p t . J a n . 15,1923 D e c . M a y 15,1923 . Mar. 15,1925 15,1926 15,1927 15,1927 4i 4| Total in O pi > pi 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 C-1925 Series B-1926. Series A-1927 Series B-1927 D a t e of issue. D a t e of maturity. Rate Treasury Department. Chicago. St. L o u i s . Minneapohs. K a n s a s City. Dahas. San Francisco. $71,436,100 59,107,200 50,343,300 88,289,900 $24,203,200 17,061, 500 17,893,100 40,115,300 $11,852,000 13,503,000 14,580,300 15,414,000 $17,964,700 14,677, 500 6,285.900 19,751^ 400 $13,790,800 8, 455,700 6,214,200 7,771,800 $30,095,900 34,824, 000 20,957,300 33,837,800 $183, 400 1,777,900 53,900 2,230,700 269,176,500 99,273,100 55,349,300 58,679,50'0 36,232,500 119,715,000 4.245.900 P e r cent. D e c . 15,1922 A u g . 1,1922 J a n . 15,1923 M a y 15,1923 June Sept. Dec. Mar. 15,1925 15,1928 15,1927 15,1927 4i K pi Total > • in d W EXHIBIT 21. 00 TREASURY BONDS OF 1947-1952, SUBSCRIPTIONS AND ALLOTMENTS, BY FEDERAL RESERVE 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 aUotted: $10,000 or less (in full) $10,100 t o $50,000 (40 p e r c e n t ) . . . . $50,100 t o $100,000 (30 p e r cent) $100 100 t o $500,000 (20 p e r cent) $500,100 t o $1,000,000 (15 p e r cent) Over .31,000,000 (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— Victory notes . . Certificates of i n d e b t e d n e s s Boston. New York. Philadelphia. Cleveland. Richmond. Atlanta. $1,399,851,900 $113,390,400 $867,994,100 $103,788,500 $100,355,300 $37,070,800 $29,608,100 327,559,600 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, 6.32, 500 1,275,300 109,261,700 9,874,300 9,822,400 23,386,000 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 1511,864,000 1 62, 690,300 1 198,016,900 46,484,200 ' 40,200,000 20, .34,5,800 14,1.58,100 144,455,800 107,642, 500 11,087,000 8,421,000 71,397,600 75,192,000 5,820, 600 1, 724, 000 14,040, 200 .4,170,500 3,402,700 259, 500 1,864,000 586 000 Total 252,098,300 19,508,000 146,589,600 7, 544, 600 18,210, 700 3,662,200 2,450, 000 Total allotments 76.3,962, 300 82,198,300 344,606,500 54,028,800 58,410, 700 - 2-1,008,000 16,608,100 Chicago. St. Louis. 2,900,300 379.400 529; 500 980,000 300,000 350,000 ~31,244,200 9,551, 700 12,000, 000 J 5,439,400 18,892,400 13, 691, 800 8, 429,000 5,529, SOO 1,567,500 1,5.30,500 712, 000 4,499, 200 771, 500 727,900 1,034,000 9,863, 400 2, 889,500 $1,001,100 1,886; 000 Total 22,120,800 7,097, 300 2,242,500 5,270,700 1,761,900 12,752,900 2,887,100 Total allotments 74, 961, 800 38,341,500 11,794,200 17,270,700 7,201,300 31,645,300 2,887,100 T o t a l cash subscriptions allotted 24,625,200 1.633.200 1; 737; 600 1, 719,000 562,500 966,700 J 52, 841,000 Treasury. 5,954,100 1.016,200 ' 752, 500 1,932,700 994,500 1,350, 000 A l l o t m e n t s on exchange for— Victory notes Certificates of i n d e b t e d n e s s 34,705,300 3. 544.400 2, 219; 000 5,602,000 3, 808,800 3,112,500 San F r a n c i s c o . 5,522, 600. 399.200 346; 500 1,004,000 600, 000 1,679,400 . $33,369,300 DaUas. .$16,076,800 . $55,300,100 Kansas City. $40,564,900 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) SIO.IOO t o $50,000 r40 n e r cent) $50;i00 t o $100,000^(30-per c e n t ) . . . . $100,100 t o .?500,000 (20 p e r cent) $500,100 t o SI ,000,000 (15 p e r cent) • Over $1,000,000 (10 p e r cent) $134,942,800 Minneapolis. $67,390,800 • 9,322,300 1.879.000 ' 921,500 2,553,000 1,047, 500 3,169,100 Pti ^^ > Pi 1 The cash subscriptions allotted, as shown by classes, were reduced in the net amount of $526,000. This amount, which can not be separated into classes, was divided among the Federalreserve districts as follows: $10,000 to Boston ,$365,200 to New York, and $151,000 to Chicago; the quota for Dallas was increased by $200. These changes are rejected in the totals for revised allotments. Pi ^> in d pi ^ 180 EEPORT OlSr THE FINANCES. EXHIBIT 22. INSULAR AND DISTRICT OF COLUMBIA LOANS—CHANGES DURING FISCAL YEAR ENDED JUNE 30, 1923. Loan. Rate. Outstanding June 30,1922. Issues. Retirements. Outstanding June 30,1923. P H I L I P P I N E ISLANDS. Land purchases 1914-1934 Public improvement: 1915-1935 1916-1936 1919-1939 Loan of 1916-1948 City of Manila, sewer and. water: First series, 1915-1935 Second series, 1917-1937 Third series, 1918-1938 '. Certificates of indebtedness: Coupon, Aug. 1,1921 City of Cebu, 1921-1941 Manila, port works and improvements, 19201930-1950 City of Manila, 1920-1930-1950 Pubhc improvement 1921-1941 Loan of 1922-1952 Collateral loan, 1922-1950 Irrigation and permanent public works Loan of July 15,1922-1952 Total Per cent. 4 $7,000,000 •.. 2,500,000 1,000,000 1,500,000 4,000,000 $10,000,000 10,000,000 • 125,000 P 1 58,625,000 2,500,000 1,000,000 1,500,000 4,000,000 1,000,000 2,000,000 1,000,000 1,000,000 2,000,000 1,000,000 6,000,000 2,750,000 10,000,000 5,000,000 2,750,000 $7,000,000 $5,000,000 23,000,000 28,000,000 125 000 6,000,000 2,750,000 10,000,000 5,000,000 2,750,000 5,000,000 23,000,000 10,000,000 74,625,000 POETO RICO. Road loan of 1910 San .Juan Harbor: Series 1912 Series 1914 Series 1915 Series 1917 Irrigation loans: Series 1913-1933-1943 Series 1913-1944-1950 Series 1914-1951-1954 Series 1915-1955-1958 Series 1916-1959-1960. Series 1918-1958-1959 Series 1922-1961-1962 Pubhc improvement: Series 1914-1925-1939 Series 1916-1927-1930 Series 1918-1927-1930 Series 1919-1931-1934. . . . . . . . . Series 1920-1937-1940 Series 1922-1941-1942-1944 Refunding loans, series 1914-1923-1953 Refunding municipal loans: Series 1915-1922-1935 Series 1916-1922-1927 Hieh-school buildiner loan 1920-1945 House construction loan Series A, 1920-1945 Workingmen's house construction 1920: Series A, 1941 . Series B, 1942 4 425,000 4 4 4 100,000 200,000 200,000 100,000 4 4 4 1,000,000 700,000 400,000 400,000 200,000 200,000 4 5 4 4 4 5 4 1,000,000 500,000 500,000 1,000,000 1,000,000 655,000 4 4 4^ 4^ . 236,000 180,000 300,000 250,000 4^ 4i 250,000 250,000 10,046,000 Total 425,000 90,000 * 10 000 200,000 200,000 100 000 1,000 000 700 000 400;000 •400,000 200,000 200,000 250 000 250,000 1 000 000 '500,'000 500,000 1,000 000 1,000,000 1,000,000 655,000 1,000,000 21,000 30,000 215,000 150,000 300,000 250 000 250,000 250,000 1,250,000 141,000 11,155,000 130,450 4,589,250 DISTRICT OF COLUMBIA. 50-year funded loan of 1924 3.65 4,719,700 " 181 SECRETARY OF THE TREASURY. EXHIBIT 23. PUBLIC DEBT RETIREMENTS CHARGEABLE AGAINST ORDINARY RECEIPTS. Face amount retired. Coupon. Registered. Total. Accrued inPrincipal amount paid. t e r e s t paid. P u r c h a s e s for account of c u m u l a t i v e s i n k i n g fund: Cumulative total to June 30,1922 $534,903,850.00 $2,242,400.00 $537,146,250.00 $529,326,478.66 $6,292,774.00' Fiscal y e a r 1923— R e t i r e d account of p u r chaseF i r s t 4's First 4i's Second 4's Second 4^'s T h i r d 4J's F o u r t h 4J's V i c t o r y 4f's R e t i r e d account of redemption— Victory 4f's Victory S i ' s 1,000.00 8,000.00 16,000.00 40,430,000.00 32,540,000.00 13,703,000.00 169,003,300. 00 1,000.00 1,000.63 12.78 8,000.00 8,005.00 109.56 16,000.00 18,010.00 257.78 110,000.00 40,540,000.00 40,541,791.04 491,453.07 32,540,000.00 32,385,817.55 250,880.42 13,703,000.00 13,626,413.25 109,555.36 510,000. 00 169,513,300.00 169,873,216.69 2,389,199.25 9,190,550.00 8,763,050.00 4,872,450.00 4,871,450.00 17,953,600.00 9,743,900.00 17,953,600.00 9,743,900.00 308,407.12 91,339.74 T o t a l fiscal y e a r . . 269,764,300.00 14,254,500.00 284,018,800.00 284,149,754.18 3,641,215.08 Cumulative total to 30,1923 June 804,668,150.00 16,496,900.00 821,165,050.00 813,476,232.82 9,933,989.08 P u r c h a s e s from r e p a y m e n t s of foreign loans: C u m u l a t i v e total t o J u n e 30,1922 . . . Fiscal y e a r 1923— Second 4 's Second 4-Vs Third 4i's 170,778,800.00 48,590,000.00 219,368,800.00 211,357,973.70 2,403,465.69 31,690,000.00 6,000.00 15,000.00 3,000.00 6,000.00 441,000.00 31,693,000.00 6,000.00 441,000.00 31,205,631.70 98.00 6,848.53 214,243.58 32,116,000.00 24,000.00 32,140,000.00 31,652,63L70 221,190.11 426,666.66 T o t a l fiscal year C u m u l a t i v e total t o J u n e 30, 1923 R e d e m p t i o n of b o n d s , etc., received as i n t e r e s t p a y m e n t s on obligations of foreign Governments: Fiscal y e a r 1923— Second 4^ 's F o u r t h 4f's 202,894,800. 00 48,814,000.00 251,508,800.00 243,010,605.40 2,624,655.80 68,502,950.00 250,000. 00 68,502,950.00 250,000.00 68,502,950.00 250,000.00 245,251.73 1,770.83 T o t a l fiscal year 68,752,950.00 68,752,950.00 68,752,950.00 247,022.56 Cumulative total to June 30,1923 88,752,950.00 68,752,950.00 68,752,950.00 247 022.58 Purchases from franchise t a x receipts: Cumulative total to June 30, 1922 63,255,450.00 63,255,450.00 62,678,310.48 211,029.13 3,215,300.00 1,000,000. 00 4,800,000.00 1,800,000.00 3,215,300.00 1,000,000.00 4,800,000.00 1,800,000.00 3,239,697.53 1,010,893.76 4,800,000.00 1,800,000.00 48,093.76 14,302.48 10,384.61 32,276.71 10,815,300.00 10,815,300.00 10,850,591. 29 103,057.56 74,070,750.00 74,070,750.00 73,528,90L77 314,086.69^ Fiscal y e a r 1923— Series A-1925 SeriesA-1926 Series B-1925 Series B-1928 .... . . . T o t a l fiscal year Cumulative total to 30,1923.-..; June 182 EEPORT ON THE EINANCES. Public debt retirements chargeable against ordinary receipts—Continued. P a r a m o u n t retired. Accrued interest. Coupon. R e c e i p t of L i b e r t y b o n d s a n d V i c t o r y notes for e s t a t e or i n h e r i t a n c e t a x e s : Cumulative total to June 30,1922..... Fiscal year 1923— First 4i's Second 4^'s T h i r d 4J's Fourth 4i's V i c t o r y 4J's T o t a l fiscal year C u m u l a t i v e t o t a l t o J u n e 30,1923 Gifts: ~ C u m u l a t i v e t o t a l t o J u n e 30,1922 . Fiscal year 1923— Second 4 ^ ' s . . . T h i r d 4^'s F o u r t h 4^'s T r e a s u r y b o n d s , 1947-52, 4 | ' s SeriesA-1924 Series B-1924.. Series A-1925. T r e a s u r v savings certificates, issue S e p t . 30,1922, series of 1923 T o t a l fiscal year C u m u l a t i v e t o t a l t o J u n e 30 1923 Forfeitures: C u m u l a t i v e t o t a l t o J u n e 30,1922.. Fiscal year 1923— F i r s t 3^'s . F i r s t 4's F i r s t 4^'s-. Second 4's Second 4 i ' s . . . T h i r d 4i's F o u r t h 4J's .. V i c t o r y 4f's . . T o t a l fiscal y e a r . . C u m u l a t i v e t o t a l to J u n e 30,19213... Miscehaneous receipts: C u m u l a t i v e t o t a l t o J u n e 30,1922.. Fiscal year 1923— Second 4 | ' s Third 4^'s.. Foiu:th 4 i ' s Victory 4f's. P a n a m a Canal* loan of 1961 "(3%) T o t a l fiscal year C u m u l a t i v e t o t a l t o J u n e 30,1923 Registered. Total. $45,129,150. 00 $5,537,200.00 $50,666,350.00 $483,747. 37 65,700.00 1,603,850. 00 1,618,400. 00 2,388,200. 00 1,000. 00 4,000. 00 311,900.00 105,450. 00 4.69,050.00 108,200. 00 69,700. 00 1,915,750. 00 1,723,850.00 2,857,250. 00 109,200. 00 971. 92 11,856.18 18,148. 79 22,547.71 364.15 5,677,150.00 998,600.00 6,675,750.00 53,888. 75 50,806,300.00 6,535,800. 00 57,342,100. 00 537,636.12 7,900. 00 15,250. 00 7,350. OOJ 50.00 36,050. 00 50.00 8,000.00 103,000. 00 25,000. 00 28,000.00 50. 00 36,050.00 50.00 8,000. 00 103,000. 00 25,000. 00 28,000. 00 4.1.10 41.10 200,150. 00 41.10 200.191.10 20T, 500. 00 7,941.10 215,4.41.10 177,850. 00 1,000.00 178,850. 00 3,000. 00 200. 00 2,650. 00 100. 00 25,050. 00 6,500.00 6,300.00 500. 00 3,000.00 200. 00 2,650.00 100. 00 25,050.00 6,500. 00 6,300. 00 500. 00 44,300. 00 44,300. 00 222,150. 00 ' 1,000.00 223,150. 00 380,200.00 380,200. 00 108,350. 00 850. 00 1,000. 00 200. 00 108,350. 00 850. 00 1,000. 00 200.00 200,000. 00 200,000. 00 110,400. 00 200,000. 00 310,400. 00 490,600.00 200,000. 00 690,600.00 SECRETARY OF THE TREASURY. 183 E X H I B I T 24. [Department Circular No. 315. Loans and Currency,] U N I T E D STATES OF AMERICA—FOUR AND O N E - H A L F P E R CENT TRE.AiSURY N O T E S , S E R I E S C - 1 9 2 6 , D A T E D A N D BEA'RING I N T E R E S T FROM D E C E M B E R 15, 1922, D U E J U N E 16, 1926. The Secretary of the Treasury offers for subscription, at par and accrued interest, through the Federal Reserve Banks, Treasury notes of Series C-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 pear interest from December 15, 1922, will be payable June 15, 1925, and will bear interest at the rate of four and one-half per cent per annum, payable semiannually on June 15 and December 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 (6) graduated additional income taxes, commonly known as surtaxes, aD.d excess-profit^ and war-profits taxes, now or hereafter imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corporations. iNotes of this series w i l l b e 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 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. The Secretary of the Treasury also reserves the right to make allotment in full upon applications for smaller amounts, and to make reduced allotments upon, or to reject, applications for larger amounts, and to make classified allotments and allotments upon a graduated scale; and his action in these respects will be final. Allotment notices will be sent out promptly upon allotment, and the basis of allotment will be publicly announced. 184 REPORT ON THE EIK-ANCES. • Payment at par and accrued interest for notes allotted must be made on or before December 15, 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 excess of existing deposits, when so notified by the Federal Reserve Bank of its district, except upon subscriptions for which Victory notes are tendered in payment. Treasury certificates of indebtedness of Series TD and TD2-1922, both maturing December 15, 1922, and 4 | per cent Victory notes, whether or not called for redemption, will be accepted at the Federal Reserve Banks at par, with an adjustment of accrued interest, as of December 15, 1922, in payment for any Treasury notes of the Series C-1925 now offered which shall be subscribed for and allotted. Victory notes in coupon form must have May 20, 1923, 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 $300,000,000, or thereabouts, with the right reserved to the Secretary of the Treasury to allot additional notes to the extent that payment is tendered in Victory notes pursuant to this circular. As fiscal agents of the United States,. Federal Reserve Banks are authorized and requested to receive subscriptions and to make allotments thereon on the basis and up to the amounts indicated by the Secretary of the Treasury to the Federal Reserve Banks of the respective districts. A. W. MELLON, Secretary oftKe Treasury. TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, . « December 7, 1922. To THE INVESTOR: Almost any banking institution in the United States wiU handle your subscription for you, .or you may make subscription direct to the Federal Reserve Bank of your district. Your special attention is invited to the terms of subscription and allotment as stated above, and to the fact that 4f per cent Victory notes may be tendered in payment. If you desire to purchase notes of the above issue after the subscriptions close, or notes of any outstanding issue, you should make application to your own bank, or if it can not obtain them for you, to the Federal Reserve Bank of your district. E X H I B I T 25. LETTER OF SECRETABY OF THE TREASURY, DATED DECEMBER 7, 1922, TO BANKING INSTITUTIONS, ACCOMPANYING THE OFFERING OF TREASURY CERTIFICATES OF INDEBTEDNESS OF SERIES TM2-1923 AND SERIES TD-1923 AND TREASURY NOTES OF SERIES C-1926, DATED DECEMBER 15, 1922. DECEMBER 7, 1922. DEAR SIR : The Treasury is to-day announcing its December financing, which comprises, first, an offering of Treasury certificates of indebtedness in two series, both dated December 15,1922, one bearing 3$ per cent interest and maturing in three months and the other bearing 4 per cent interest and maturing in one year, and, second, an offering SECRETARY OE THE TREASURY. 185 of short-term Treasury notes, dated December 15, 1922, bearing 4^ per cent interest and maturing in 2^ years. Subscriptions are being received through the Federal lieserve Banks, acting as fiscal agents of the United States. The combined offering of certificates is for $400,000,000, or thereabouts, while the offering of notes is for $300,000,000, or thereabouts, with the right reserved to the Secretary of the Treasury to allot additional notes to the extent that 4f per cent Victory notes are tendered in payment. The terms of the offering are fully set forth in Treasury Department Circulars 314 and 315, both dated December 7, 1922, copies of which are inclosed for your ready reference.^ There will become payable on December 15, 1922, about $700,000,000 of 4 | per cent Victory notes called for redemption on that date, and about $200,000,000 of Treasury certificates of indebtedness maturing on that date. At the same time, about $100,000,000 will be payable as interest on the public debt. Against these payments, aggregating about $1,000,000,000, the Treasur}'^ already has available balances amounting to about $275,000,000, and it expects to receive during December about $275,000,000 in income and profits taxes. The notes and certificates now offered will provide for trie remainder of the December 15th maturities and leave a margin to cover the Treasury's imrnediate cash requirements and such balance of the 1918 War-Savings Certificates as may have to be redeemed in cash at the first of the year. The Treasury has already announced special arrangements for the exchange of these maturing War-Savings Certificates into the new Treasury Savings Certificates, and through these exchanges and the proceeds of the current offering, expects to provide for the greater part of the War-Savings maturity, leaving such further refunding as may be necessary for the purpose to be accomplished after the turn of the year when market conditions are favorable. With the completion of the December financing, the Tijeasury will thus have provided for most of the short-dated debt maturing this fiscal year. Aside from the balance of WarSavings Certificates that may remain to be refunded there will only be the issues of Treasury certificates maturing March 15 and June 15, 1923, both covered by the estimated tax payments to be received in those months, and the remaining uncalled Victory notes, amounting to about $894,000,000 on November 30, 1922. Exchanges of these notes for the new Treasury notes now offered, and advance redemptions and retirements for the sinking fund and on other accounts, may be expected to reduce the outstanding amount of uncalled Victory notes still further before their maturity. I think you will find it interesting in this connection" to know about the improved prospects of the Treasury for this fiscal year and the next fiscal year. The Budget which was presented to Congress on Monday shows that according to the latest revised estimates of receipts and expenditures the deficit for the current fiscal year has already been reduced to about $274,000,000, as compared with an indicated deficit of about $697,000,000 at the beginning of the fiscal year, and at the same time holds out a real hope that by the end of the year the deficit can be entirely overcome by still further reductions in expenditure and increases of receipts, arising J See Exhibit 24, p. 183, and Exhibit 33, p. 237. 186 REPORT ON T H E FINANCJES. partly from further realization on Government-owned securities and property and partly from increased collections of customs and internal taxes. The actual receipts and expenditures of the Government for the first five months of the current fiscal year, through November 30, 1922, support these estimates. Total ordinary receipts to that date on the basis of dail}^ Treasury statements amounted to $1,404,776,456.64, as compared with total expenditures chargeable against ordinary receipts, amounting to $1,514,314,770.80, leaving a deficit for the first five months of only $109,538,314.16. By the end of December, this deficit should be overcome by the quarterly payment of income and profits taxes which falls due in that month, thus leaving a balanced budget, or perhaps even a small surplus, for the first six months of the fiscal year 1923. The prospects for the second half of the year are likewise favorable. The Budget estimates for the next fiscal year, 1924, indicate a surplus of about $180,000,000, and though it is still too early to forecast the actual results, this indicated surplus gives some margin to take care of any deficit that may possibly remain at the close of the present year or, if this year closes with a balanced budget or a small surplus, can be applied to the retirement of debt maturing within the fiscal year 1924. For both years, 1923 and 1924, the Budget provides for the regular sinking fund requirements and other public debt expenditures chargeable against ordinary receipts, so that any surplus that can be realized in either year will mean additional retirements of debt. The Treasury is accordingly financing its December maturities on a short-term basis, believing that the prospects for the next year or two indicate the probability of substantial retirements of early mxaturing debt out of current receipts, and that by reason of the redemption on December 15th of $900,000,000, or thereabouts, of short-term Government obligations, these new issues of short-term notes and certificates, in a smaller aggregate amount and with maturities adapted to the varying needs of investors, will offer exceptionally attractive opportunities for reinvestment. With this in view the Treasury is offering in the official circulars to accept Treasury certificates maturing December 15, 1922, and Victory notes called for redemption on that date, in pa^maent for the new 3-months or 1-year certificates, and to accept certificates maturing December 15th and 4-J per cent Victory notes, whether or not called for redemption, in payment for the new 2i-year Treasury notes. By subscribing liberally to the new offerings in the first instance, and extending every possible facility to your customers to invest in the notes and certificates through cash purchase or by exchange of Victory notes or maturing certificates,' you will be rendering an important service to the Treasury as well as to your customers, and, at the same time, will be helping to accomplish what all of us most desire in these operations, namely, the widest possible distribution of the Government's securities among investors throughout the country. Cordially yours, A. W. MELLON, Secretary of tlie Treasury. To THE PRESIDENT OF THE BANKING INSTITUTION ADDRESSED. SECRETARY OF T H E TREASURY. EXHIBIT 187 26. [Department Circular No. 318. Loans and Currency.] U N I T E D STATES OF AMERICA—FOUR AND ONE-HALF P E R CENT TREASURY NOTES, SERIES A-1927, DATED AND BEARING INTERE S T FROM. J A N U A R Y 1 6 , 1 9 2 3 , D U E D E C E M B E R 1 6 , 1 9 2 7 . The Secretary of the Treasury offers for subscription, at par and accrued interest, through the Federal Reserve Banks, Treasury notes of Series A-1927, 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 January 15, 1923, will be payable December 15, 1927, and will bear interest at the rate of four and one-half per cent per annum payable June 15 and December 15 in each year, on a semiannual basis. 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 Avill 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 (6) graduated additional income taxes,. commonly loiown 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 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 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. • The Secretary of the Treasury also reserves the right to make allotment in full upon applications for smaller amounts, and to make reduced allotments upon, or to reject, applications for larger amounts, and to make classified allotments and allotments upon a graduated scale; and his action in these respects will be final. Allotment notices will be sent out promptly upon allotment, and the basis of allotment will be publicly announced. 62166—FI 1923 14 188 REPORT ON THE FINANCES. Payment at par and accrued interest for notes allotted must be made on or before January 15, 1923, or on later allotment. After allotment and upon payment Federal Reserve Banks may issue interim receipts pending delivery of the definitive notes. Any qualified depositary will be permitted to make payment by credit for notes allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits, when so notified by the Federal Reserve Bank of its district. Unregistered War Sayings Certificates, Series of 1918, will be accepted at their maturity value, and Victory notes of the 4J 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, in payment for any Treasury notes of the Series A-1927 now offered which shall be subscribed for and allotted. Unregistered War Savings certificates must be duly receipted in the name inscribed thereon. Victory notes in coupon form must have the May 20, 1923, coupon 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; in no event, however, will interest be allowed on called Victory notes surrendered in payment, interest on such notes having ceased on December 15, 1922. 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 or War Savings Certificates 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 tlie Treasury. TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, January 9, 192S. To THE INVESTOR: Almost any banking institution in the United States will handle your subscription for you, or you may make subscription direct to the Federal Reserve Bank of your district. Your special attention is in^dted to the terms of subscription and a;llotment as stated above, and to the fact that unregistered War Savings Certificates, Series of 1918, and 4i per cent Victory notes may be tendered in payment. If you desire to purchsise 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. EXHIBIT 27. [Department Circular No. 323. Loans and Currency.] UNITED STATES OF AMERICA—FOUR AND THREE-QUARTERS P E R CENT TREASURY NOTES, SERIES B-1927, DATED AND BEARING INTEREST FROM MAY 15, 1923, DUE MARCH 15, 1927. The Secretary of the Treasury offers for subscription, at par and accrued interest, through the Federal Reserve Banks, Treasury notes of Series B-1927, of an issue of gold notes of the United States authorized by the Act of Congress approved September 24, 1917, SECRETARY OF THE TREASURY. 189 as amended. The notes will be dated and bear interest from May 15, 1923, will be payable on March 15, 1927, land will bear interest at the rate of four and three-quarters per cent per annima, payable September 15, 1923, 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 hereafter imposed by the United States, any State, or any of the possessions of the United States, or b}^ 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. 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 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. 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, to make preferred allotments upon applications for which 4 | per cent Victory notes are tendered in payment, and to make classified allotments and allotments upon a graduated scale; and his action in these respects will be final. Allotment notices will be sent out promptly upon allotment, and the basis of allotment will be publicly announced. Payment at par and accrued interest for notes allotted must be made on or before May 15, 1923, 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 amoimt 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 are tendered in payment. Victory notes of the 4 | per cent series, whether or not called for redemption, will 190 REPORT ON T H E FINANCES. . be accepted as herein provided in payment for any notes of the Series B-1927 now offered which shall be subscribed for and allotted. Called 4f per cent Victory notes, bearing the distinguishing letters A, B, C, D, E, or F prefixed to their serial nimibers, will be accepted at par flat, as of May 15, 1923, interest thereon having ceased on December 15, 1922, and such notes if in coupon form must have the May 20, 1923, coupon attached. Uncalled 4f per cent Victory notes, maturing May 20, 1923, and bearing the distinguishing letters G, H, I, J, K, or L prefixed to their serial numbers, will be accepted at par flat, as of May 15, 1923, but full interest thereon to maturity will be paid in ordinary course when due, and such notes if in coupon form should accordingly be presented without the May 20, 1923, coupon, which should be detached and separately collected. Victory notes in registered form must be assigned to the Secretary of the Treasury for redemption or payment, in accordance with the general regulations of the Treasury Department governing 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 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, May 7, 1923. To THE I N V E S T O R : Almost any banking institution in the United States will handle your subscription for you, or you may make subscription direct to the Federal Reserve Bank of your district. Your special attention is invited to the terms of subscription and allotment as stated 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 apply to your own bank, or, if it can not obtain them for you, to the Federal' Reserve Bank of your district, which \vill then endeavor to fill your order in the market. EXHIBIT 28. L E T T E R O F S E C R E T A R Y O F T H E T R E A S U R Y , D A T E D M A Y 7, 1 9 2 3 , TO B A N K I N G I N S T I T U T I O N S , A C C O M P A N Y I N G T H E O F F E R I N G O F T R E A S U R Y N O T E S OF S E R I E S B - 1 9 2 7 , D A T E D MAY 15, 1 9 2 3 . MAY 7, 1923. DEAR SIR: The Treasury is announcing to-day an offering of 4 | per cent Treasury notes of Series B-1927, dated May 15, 1923, and maturing March 15, 1927. This is a refunding offering and accordingly provides special facilities for receiving 4 | per cent Victory notes in exchange lor the new notes, without the necessity of adjustment of interest in any case and with full interest to maturity in the case of uncalled Victory notes. The terms of the offering more fully appear in Treasury Department Circular No. 323, dated May 7, 1923, a copy of which is enclosed for your ready reference.^ • 1 See Exhibit 27, p. 188. SECRETARY. OF THE T R E A S U R Y . ' 191 The amount .of the issue will be $400,000,000,, or thereabouts, with the right reserved to the Secretary, of the Treasury to allot additional notes to the extent that 4 | per cent Victory notes are tendered in p a y m e n t There' are still outstanding-.4| per cent. Victory notes which were called for redemption on December 15,. 1922, to the amount of about $65,000,000, and uncalled Victory notes maturing May 20, 1923, to the amount of about $765,000,000, making a total of about $830,000,000 of Victory notes now outstanding. The new offering of Treasury notes is intended, with exchanges .of Victory notes and the balances already on hand, to provide.for the outstanding Victor^^ notes which will be presented lor payment and at the same time to cover the Treasury s other cash requirements between now and the June installment of taxes. This offering completes for practical purposes the refinancing of the Victory Liberty Loan, and it is therefore an appropriate time to indicate the results of the refunding operations which have been in progress. On April 30, 1921, the Treasury announced its program for the refunding of the short-dated debt, and it has since been carrying out the policy of orderly funding and gradual liquidation outlined in that announcement. Except for the issue of about $750,000,000, of 25/30-year- Treasury bonds in the fall of 1922, the refunding has all been on a short-term basis, and it has been arranged with a view to distributing the early maturities of debt at convenient intervals over the period between now and the maturity of the Third Liberty Loan in 1928, in such manner that surplus revenues might be applied most effectively to the gradual reduction of the debt. With this object in view all of the short-term notes issued in the course of the refunding have been given maturities on quarterly tax-payment dates, and all outstanding issues of Treasury certificates have, likewise been reduced to tax maturities. There has been at the same time a substantial reduction in the total debt, particularly the short-dated debt, through the operation of the sinking fund and other public debt retirements chargeable against ordinary receipts, as well as through the application of surplus revenues. The result is that the public debt stands to-day at a much reduced figure and in manageable shape, with mjaturities distributed in such a way as to give the Government adequate control over it and facilitate its gradual retirement. The comparative figures of the debt as it stood when these operations commenced on or about April 30, 1921, and as it will stand on or about June 30, 1923, when the present refunding will have been completed, show clearly what has been accomplished. On April 30, 1921, the gross public debt, on the basis of daily Treasury statements, amounted to about 24 billion dollars, of which over 7^ billion dollars was short-dated debt, maturing in about two years. This included over $4,050,000,000 of Victory notes, over $2,800,000,000 of Treasury certificates of indebtedness, and over $650,000,000 of War-Savings Certificates of the 1918 series. By June 30, 1923, it is estimated, the gross debt will have been brought down to about $22,400,000,000, a reduction of about $1,600,000,000 during the period, and all the old 7^ billion dollars of short-dated debt will have been retired or refunded. I n its place there will be a new class of short-dated debt, aggregating about 5i billion dollars and maturing over the period of about 5 years up to the maturity of the Third Liberty Loan, consisting of (1) 192 REPORT ON THE FINANCES. $1,100,000,000, or thereabouts, of Treasury certificates of indebtedness, maturing on various quarterly tax-payment dates within the year; (2) about $4,000,000,000 in the aggregate of Treasury notes, maturing on various quarterly tax-payment dates in t h e y e a r s 1924, 1925, 1926, and 1927; and (3) about $350,000,000 of War-Savings Certificates and Treasury Savings Certificates, maturing in moderate amounts each year. These maturities are arranged so as to permit their refinancing with the minimum of disturbance to business and industry, and, with the Government balancing its budget each year and showing a reasonable surplus, it should be possible to retire them gradually out of surplus revenues, in time to avoid embarrassment to the heavy refinancing that will be necessary in connection with the maturity oi the Third Liberty Loan. .This Government, as you probably know, has been squarely following the policy of balancing its budget from year to year, ordinary receipts against ordinary expenditures, and beginning with the fiscal year 1921 it has included as ordinary expenditures for budget purposes the sinking fund and all other debt retirements properly chargeable against ordinary receipts, aggregating about $422,000,000 for the fiscal year 1921 and about the same amount for the fiscal year 1922. This means that any surplus which may be realized is after providing for sinking fund charges and similar public debt retirements. For the fiscal year 1923 the returns are not yet complete, but up to April 30, 1923, covering the first ten months of the year, there was a surplus on the basis of daily Treasury statements of over $137,000,000 above all expenditures chargeable against ordinary receipts, and th^ Treasury's best estimates indicate that by the end of the year there will be a surplus of over $125,000,000, after charging out expenditures for the sinking fund and other public debt retirements of the same nature to the amount of about $405,000,000. This means that notwithstanding the unfavorable prospects at the beginning of the year the Government will succeed in closing the year with a substantial surplus. This fortunate result is due, in large part, to increased revenues from Internal Revenue and Customs, and, to a lesser extent, to decreases in the general expenditures of the Government. I t is a showing which gives much reason for encouragement, and it. means better prospects for the future if all concerned will continue to exercise the utmost economy in Government expenditure and avoid new projects that would drain the public Treasury. The current off'ering of Treasury notes brings to an end the first phase of the refinancing of the war debt, and it offers a peculiarly favorable opportunity lor holders of Victory notes to reinvest in a Government security of similar maturity and bearing the same rate of interest. The terms are attractive, and nothing will be more helpful to the general situation than the widest possible distribution of the new notes among investors. I am accordingly writing to ask your continued cooperation, believing that you will wish to extend to your customers every possible facility for subscribing to the new securities and particularly for exchanging their Victory notes for the Treasury notes now offered. Cordially yours, A. W. MELLON, Secretary of tlie Treasury. 'To THE PRESIDENT OF THE BANKING INSTITUTION ADDRESSED. SECRETARY OF THE TREASURY. EXHIBIT / 193 29. [Text of Department Circular No. 300. Public Debt.] (Page references in the text of this circular apply to appendices attached to the circular but omitted In this rreport. e p o r t . Copies Copies of' the " circular * * may be . obtained ^ . ' . on . application . . . . ythe - Public ^ ^.- Debt ^ ^ . Service, ^ . .„ to Treasury Department.) nt.) REGULATIONS WITH RESPECT TO UNITED STATES BONDS AND NOTES. TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, WasUngton, July 81, 1928. The following regulations governing United States bonds and notes, and transactions with the Treasury Department therein, are published for the information and guidance of all concerned, and supersede Document 2740, knowTi as ^'Regulations in relation to United States Bonds,'' dated July 1, 1915, and Treasury Department Circulars No. 100, dated December 26, 1917; No. 141, dated September 15, 1919, as amended and supplemented; No. 142, dated November 15, 1919; No. 147, dated July 22, 1919; No. 182, dated February 14, 1920; and No. 288, dated May 15, 1922, as well as all other regulations governing transactions in United States bonds or notes inconsistent with the regulations herein prescribed. Except as otherwise indicated herein, these regulations, in so far as applicable, likewise govern transactions in Treasury certificates of indebtedness, as well as transactions in issues of bonds of the District of Columbia and issues of bonds or other obligations of the governments of Porto Rico and the Philippine Islands as to which the Treasury Department acts as fiscal agent. Regulations relating to Treasury savings certificates and war-savings certificates appear in separate Treasury Department circulars, to which those interested are referred. , The Secretary of the Treasury may withdraw or amend at any time or from time to time any or all of these regulations. A. W. MELLON, Secretary of the Treasury. UNITED STATES BONDS AND NOTES. 1. United States bonds and notes are issued from time to time in coupon and registered form, and in various authorized denominations. Liberty bonds and Treasury bonds are available in both coupon and registered form and are freely interchangeable as between coupon and registered bonds of the same issue and as between the various authorized denominations. Coupon bonds of all issues may be freely exchanged for registered bonds, and registered bonds of all issues may be transferred into other names, but registered bonds of issues other than Liberty bonds and Treasury bonds may not be exchanged for coupon bonds. Exchanges of denominations are permitted for registered bonds of all issues and for Liberty bonds and Treasury bonds' in coupon form, but not for coupon bonds of other issues. Treasury notes are available only in coupon form, b u t are freely interchangeable as between the authorized denominations. No charge is made by the United States for transfers or exchanges. 194 REPORT ON THE FINANCES. 2. Information with respect to the several issues of United States bonds and notes now outstanding and bearing interest is set forth in Appendix A, appearing on page-34 of this circular, while Appendix B, appearing on page 36, gives similar information with respect to issues of" the District of Columbia and of the insular governments as to which the Treasury Department acts as fiscal agent. All communications relating to matters covered by these regulations, as well as requests for forms for use in connection therewith, 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. COUPON BONDS AND NOTES. 3. United States coupon bonds and notes are payable to bearer^ and title thereto passes by delivery, without indorsement and without notice to the Treasury Department. Interest on coupon bonds and notes is payable at the office of the Treasurer of the United States in Washington, or at any-Federal Reserve Bank or branch, upon presentation and surrender of the interest coupons appertaining thereto as they severally mature. Banking institutions and post offices generally arrange to cash interest coupons without charge as an accommodation to their patrons. REGISTERED BONDS AND NOTES.^ 4. DESCRIPTION.—A United States registered bond is payable to the registered owner whose name is inscribed thereon, or his registered assigns, and may be transferred only by an assignment thereon duly executed by the registered owner or his duly authorized representative in the manner hereinafter provided, and duly recorded on the books of the Treasury Department. The name of the registered owner of a United States bond in registered form is inscribed on the face of the bond and recorded on the books of the Treasury Department. Interest on registered bonds is paid by check drawn to the order of the registered owner and mailed to his address of record. No charge is made by the United States for registration. 5. ADVANTAGES OF REGISTRATION.—Registration protects the owner of a United States bond from loss or theft, and holders generally are urged, wherever practicable, to take advantage of the privilege of registration, particularly in cases where adequate facilities are not available for the safekeeping of coupon bonds. No relief can be given in case of the loss or theft of a coupon bond, but in case of the loss or theft of a registered bond, unless assigned in blank or for exchange for coupon bonds without instructions restricting delivery, the Treasury Department will give relief to the owner in accordance with the provisions of paragraphs 83 to 85 of these regulations. Holders of registered bonds receive interest checks drawn on the Treasurer of the United States in.pa}maent of interest as it falls due, and their names are all recorded on the books of the Treasury Department. 6. CLOSING OF TRANSFER BOOKS.—For the purpose of preparing interest checks, the books of the Treasury Department are closed 1 Since no notes in registered form are now outstanding unmatured, notes are not specifically covered in the remainder of this title, but the provisions hereof will apply equally to registered n^es if any should be issued. SECRETARY OF THE TREASURY. 195 against- the transfer or exchange of registered bonds of the various loans at the close of business on the dates set forth in Appendices A and ,B, pages 34 and 36, usually for one full month preceding the interest-payment dates, and interest is declared in favor of the holders of record on. such dates. The books are. reopened for all purposes at the opening of business on the day following the date on which interest falls due. If registered bonds forwarded for transfer or exchange are not actually received by the Department on or before the day fixed for closing the transfer books, transfers or exchan^ges thereof will not be made until the reopening of the books, and interest will be paid to the holder of record at the time the transfer books closed. If the date set for the closing of the transfer books falls on a Sunday or a legal holiday, the books will be closed on the last business day preceding such date, aiid if the date set for the reopening of the transfer books falls on a Sunday or a legal holiday, the books will reopen on the first business day following such date. Registered bonds presented for transfer or exchange with assignments which are imperfect or not supported by the required authority will be passed for transfer or exchange only when the imperfections have been corrected or the. required authority furnished; if, in the meantime, the transfer books close in anticipa. tion of an interest payment, action with respect to any such transfer or exchange will not be taken until the transfer books reopen, and inte!rest accordingly will be paid to the holder of record at the time the transfer books closed. 7. CHANGE OF ADDRESS OF REGISTERED HOLDER.—Notification of any change in the address of a registered holder should be sent promptly to the Treasury Department, Division of Loans and Currency, Washington, D. C. In giving such notification, the serial numoer, denomination, and title of the bonds involved must be given, the old and new addresses set forth, and the request signed in the same manner as the bonds are inscribed. (Use Form L. & C. 228, p. 77.) Ordinarily it will not be possible to take notice of a change in address during any period when the transfer books of the loan in question are closed (see Appendices A and B, pp. 34 and 36), and the Department can not guarantee that a change of address will be effective for the current interest period unless notice thereof is received at least two weeks prior to the closing of the transfer books. Registered holders should therefore in. all possible cases advise the Department of a change of address at least six weeks before the interest on their registered bonds falls due. 8. REQUESTS FOR REGISTRATION.—In order to avoid difficulty in transferring registered bonds, or collecting interest thereon, it is of the utmost importance that the bonds be properly registered. Requests for registration should conform to the instructions contained in paragraph 10 hereof, and the registration instructions should be clear and accurate in every respect and, wherever possible, typewritten on the forms hereinafter prescribed. I t is advisable that all bonds owned by the same person be registered in exactly the same form. If not so registered, upon application to the Department appropriate instructions as to the procedure to secure uniformity in registration will be given to the registered holder. 9. iNACCtrRACiES IN INSCRIPTIONS.—In no case should the registered holder, or any. person in his lehalf make any erasure, alteration, or 196 REPORT ON T H E FINANCES. correction on a registered bond. If an error has been made in inscribing the name of the owner, the bond should be assigned to the owner in the correct name and assigned by him both in the name as it appears on the face of the bond and in the correct name. If the correction involves a substantial change in name, the Department may require additional proof and a bond of indemnity. In the.event that directions for the issue of such bond were transmitted by a banking institution or through a Federal Reserve Bank, the bond when assigned for correction should be returned by the owner through the same banking institution or Federal Reserve Bank, accompanied by full explanation and instructions; otherwise it should be returned direct to the Treasury Department, Division of Loans and Currency, Washington, D. C. 10. FORM OF REGISTRATION.—The following forms of registration are suggested and should be used in requesting the issue of registered bonds: (a) Name and address of registrant.—The full Christian name (and middle name, or initial, if any) of the registrant should be given, with the prefix Mrs. or Miss, in cases of women. The post-office address in full, including street address, must be given. (6) A married woman.—If bonds are to be registered in the name of a married woman, her own Christian name, with middle name or initial, if any, and not that of her husband, should be given. Bonds should not be registered, for example, in the form ^'Mrs. John C. Jones.'' The married woman's own Christian name with family name or initial should be used, as, for example, ^'Mrs. Helen L. Jones." (c) A guardian.—Bonds should not be registered in the form ^^ James Smith, guardian," but should he inscribed so as to identify the guardianship, as for example, ^^ James Smith, as guardian of Mary Brown," or ^^Mary Brown, by James Smith, her guardian." See further, paragraphs 49 to 51 of these regulations as to assignments under the different forms of registration. (d) A minor.—Request should not be made for the registration of bonds in the name of a minor. The name of a guardian should in all cases be furnished, as indicated in the preceding paragraph. Where there is no legally appointed guardian, registration m a y be made in the name of the natural guardian with whom, the minor resides, and, upon the attainment of majority by the minor, such natural guardian may assign the bond for transfer and registration in the minor's own name. See further, paragraphs 49 to 51 of these regulations as to assignments under the different forms of registration. (e) A corporation or incorporated association.—Registration of bonds should not be requested in the names of any of the officers of a corporation or incorporated association, but should be in the legal corporate title of the corporation or association. (J) A partnership.—Where the owner is a firm or partnership, the registration should disclose that fact, as, for example, ^.^ James Smith & Co., a partnership." If registration has been made in the name of the firm without further description, the description must be added in all cases, upon assignment, to the signature to the assignment, as for example, '^ James Smith & Co., a partnership, by William Brown, member of the firm"; otherwise, further proof rtiay be required. SECRETARY OF THE TREASURY. 197 {(j) An unincorporated association.—Registration should not be requested in the name of an unincorporated association, lodge/union, or society, but one or more trustees or other officers should be designated by such organization and the bonds registered in the names of the trustees or officers, in the form ^^Jolm Brown and Joseph Smith, or their successors, as trustees for the Harmony Society of Richmond, Virginia." {h) Trustees or legal representatives.—Bonds should not be registered in the form ^^John Jones and James Smith, as trustees," but the trust should in all cases be identified, as, for example, ^^John Jones and James Smith, as trustees under the will of Henry Smith." The sanie principle applies where trustees are acting under an indenture of trust or a trust agreement. I t applies also to executors or administrators of estates, and to other fiduciaries; accordingly bonds should be registered in the form ^^ John Jones, as executor under the will of Henry Jones," rather than ^'John Jones, executor." {%) Registration limiting legal title o-f owner.—^The Treasury Department does not recognize any form of registration in the name of one person for life with a remainder to others, as, for example, ^'John Jones for life, then to Henry Smith," nor does it recognize any form indica;ting that the person whose name appears on the bond does not hold full legal title to the bond with complete power of disposition, as, for example, ^^John Jones under article 10 of the will of Henry Smith." In case one person is entitled under the provisions of a will, or otherwise, to the income for life, with remainder over, a trustee should be appointed in whose name the bonds can be registered in accordance with subdivision (Ji) of this paragraph. {j) In names of two or more persons.—Where registration is desired in the names of two or more persons, the full name of each individual should be given, as, ^^John Smith and Mary Smith," rather than ''John and Mary Smith." In order to provide for joint ownership, with the right of survivorship, registration may be in substantially the f o r m ' ' J o h n Smith and Mary Smith," or "John Smith or Mary Smith," or preferably "John Smith and Mary Smith, or the survivor.'' If registration is in any of the above forms, all the persons named must unite in any assignment if living, and in case oi death assignments by the survivor or survivors will be recognized upon satisfactory proof of death and survivorship. Registration in the form " J o h n Smith or Mary Smith, or either of t h e m , " does not create joint ownership, and assignments by all the co-owners will be required incases of transfer or exchange, but no right of survivorship will be recognized. The Treasury Department recognizes no form of joint registration which will permit the assignment by one of the co-owners while the others are living; if it is desired that any one co-owner shall have this authority, powers of attorney to that effect may be executed by the other co-owners. See further, paragraphs 47 and 48 of these regulations as to assignments under the dift'erent forms of registration. (it) In names of schools.—Registration should not be made in the form "Johnson Public School," or " E i g h t h Grade, Jeft'erson School," but a representative should be designated, in whose name the bonds should be registered, the name to be followed by a descriptive title identifying such representative with the particular school, as, for example, " J o h n Smith, or his successors, as principal, Johnson Public School, Troy, N. Y . " : ^ 198 REPORT ON T H E FINANCES. TRANSACTIONS I N BONDS AND NOTES. 11. Each class of transaction and each loan and issue of bonds and notes are handled separately by the Treasury Department and the Federal Reserve, Banks. Accordingly iii submitting .bonds or notes separate transmittal forms should be used for each class of transaction and for each loan and issue. Persons submitting bonds or notes to the Treasury Department, Division of Loans and Currency, or to a Federal Reserve Bank, are earnestly requested to observe this requirement and to use the forms prescribed for the pm^pose which are set forth in Appendix F to these regulations, copies of which ma}^ be had upon application to the Treasury Department, Division of Loans and Currency, or to any Federal Reserve Bank. A D D R E S S FOR COMMUNICATIONS. 12. The correct address for communications to the Treasury Department with respect to transactions in bonds and notes and for shipments of securities is The Treasury Department, Division of Loans and Currency, Washington, D. C, but such communications and shipments may be addressed to any Federal Reserve Bank. Banldng institutions and dealers in investment securities conducting transactions in United States bonds or notes for themselves or their customers are urged, wherever possible, to present their transactions to the Federal Reserve Bank of the district. TRANSLATIONS. 13. Powers of attorney and all other documents executed in the United States which are presented in support of assignments or other transactions before the,Department, must be in the English language. If executed abroad in any other language, the documents must be accompanied by accurate translations thereof into the English language and by a certificate of the person making such translation to the eft'ect that it is correct and complete, which should be sworn to before a notary or other officer authorized to administer oaths, who must also impress his official seal. TRANSPORTATION CHARGES AND RISKS. 14. O N SURRENDER OF BONDS AND NOTES.—If bonds or notes are presented for exchange, transfer, or other transactions within the scope of these regulations, delivery thereof must be made-to the Treasury Department or to a Federal Reserve Bank at the expense and risk of the owner, with all transportation charges prepaid. In order that the owmer may be protected against loss, coupon bonds or notes should be forwarded by registered mail insured or by express prepaid, and registered bonds or notes should be forwarded by registered mail, except that registered bonds or notes assigned in blank or bearing assignments for exchange for coupon bonds or notes which do not restrict delivery should be forwarded by registered mail insured, or by express prepaid. 15. O N ISSUES OF REGISTERED BONDS.—Registered bonds to be delivered upon exchange, transfer, or other transactions, unless delivered in person to the registered owner or his duly authorized SECRETARY OF THE TREASURY. 199 representative, will be delivered by registered mail without expense to, but at the risk of, the registered owner, except that delivery will be made by express collect or by registered mail insured at the risk: and •expense of the owner, if written.instructions to that effect are given. 16. O N ISSUES OF COUPON BONDS AND NOTES.—Coupon bonds or notes, to be delivered upon exchange or other transaction, unless delivered in person to the owner or his duly authorized representative, will be delivered by registered mail insured at the risk and expense of the owner, except that delivery will be made by express collect, likewise at the risk and expense of the owner, if written instructions to that effect are given. 17. TRANSACTIONS THROUGH BANKS AND TRUST COMPANIES.— Holders, of bonds and notes are advised to consult with their own banks and trust companies regarding transactions involving coupon bonds or notes, for arrangements may be made as between Federal Reserve Banks and incorporated banks and trust companies for the^ transportation of coupon bonds and notes between incorporated banks and trust companies and 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 arid trust companies to the Federal Reserve Banks. 18. B E T W E E N THE TREASURY DEPARTMENT AND FEDERAL R E S E R V E BANKS.—Transportation charges and risks on bonds and notes transmitted between Federal Reserve Banks and branches and the Treasury Department under the provisions of these regulations will be borne by the United States. EXCHANGES OF DENOMINATIONS. 19. COUPON BONDS AND NOTES.—Liberty bonds and Treasury bonds and Treasury notes in coupon form may be exchanged at any time for an equal face amount of coupon bond^ or notes in any authorized denominations of the same loan and issue. Bonds and notes presented for exchange must have all matured coupons detached and all unmatured coupons attached. The coupon bonds and notes delivered on exchange will have corresponding matured coupons detached and unmatured coupons attached. Specific instructions for the issue and delivery of the new coupon bonds or notes must accompany the bonds or notes presented for exchange. (Use Form L. & C. 227, p. 75.) Treasury certificates of indebtedness may likewise be exchanged for an equal face amount of certificates in any authorized denominations of the same series. 20. REGISTERED BONDS AND NOTES.-^—Registered bonds may be exchanged at any time for an equal face amount of registered bonds in any authorized denominations of the same loan and issue, to be inscribed in the same manner as the bonds presented. Since no change of ownership is involved, such exchanges do not require any assignment of the registered bonds presented and may be made even during a period when the transfer books are closed. Specific instructions for the issue and delivery of the new registered bonds must accompany the bonds presented for exchange. (Use Form L. & C. 227, p. 75.) 1 Since no notes in registered form are now outstanding unmatured, notes are not specifically covered in this title, but the provisions hereof will apply equally to registered notes if any should be issued. 200 REPORT ON T H E EXCHANGES FINANCES. OF COUPON FOR REGISTERED BONDS OR NOTES.^ 21. Coupon bonds may be exchanged for an equal face amount of registered bonds in any authorized denomination of the same loan and issue. The bonds presented must have all matured coupons detached and all unmatured coupons attached, and the registered bonds issued upon exchange will bear interest from the last preceding interestpayment date, if, however, coupon bonds are presented for such exchange during any period when the transfer books of the loan in question are closed, the next maturing coupon should be detached and neld for collection in ordinary course when due, and the registered bonds issued upon such exchange will bear interest from such next succeeding interest-payment date. Specific instructions for the issue and delivery of tne registered bonds must accompany the coupon bonds presented for exchange. (Use Form L. & C. 142, p. 69.) EXCHANGES OF REGISTERED LIBERTY BONDS OR TREASURY BONDS FOR COUPON BONDS.^ 22. Liberty bonds or Treasury bonds in registered form may be exchanged for an equal face amount of Liberty bonds or Treasury bonds in coupon form in any authorized denominations of the same loan and issue. Registered bonds so presented for exchange must be assigned by the registered holders thereof in accordance with the regulations governing assignments. The preferred form of assignment is to " T h e Secretary of the Treasury for exchange for coupon bonds to be delivered to ," the name of the person to whom delivery of the coupon bonds is to be made being inserted before completion of the assignment. Assignments in blank or for exchange into coupon bonds, or to the Secretary of the Treasury for exchange into coupon bonds, will also be accepted for the purpose of effecting exchanges of registered for coupon bonds. Assignments should not be made simply to " T h e Secretary of the Treasury for exchange" or to " T h e Secretary of the Treasury." Specific instructions for the issue and delivery of the coupon bonds to be issued upon exchange must accompany the bonds presented. (Use Form L. & C. 143, p. 71.) The coupon bonds issued upon such exchange will have all matured coupons detached and all unmatured coupons attached. For the effect of the closing of the transfer books,, see paragraph 6 of these regulations. TRANSFERS OF REGISTERED BONDS AND NOTES.^ 23. A registered bond may be transferred on the books of the Treasury Department into the name of another person upon the presentation of the bond properly assigned in accordance with the regulations governing alssignments. Specific instructions for the issue and delivery of the registered bonds to be issued upon transfer must accompany the bonds presented. (Use Form L. & C. 144, p. 73.) Assignments for transfer should be made to the transferee, or, if desired, tO' the Secretary of the Treasury for transfer into the name of the transferee, who should be named in the assignment. Assignments in 1 Since no notes in registered form are now outstanding unmatured, notes are not specifically covered in: this title, but the provisions hereof will apply equally to registered notes if any should be issued. SECRETARY OF THE TREASURY. 201 blank will also be accepted for the purpose of transfer, if accompanied by the necessary instructions for the issue of the new bonds. Assignments should not be made simply to " The Secretary of the Treasury for transfer," or to " T h e Secretary of the Treasury." For the effect of the closing of the transfer books, see paragraph 6 of these regulations. R E D E M P T I O N OF BONDS AND NOTES. 24. The term " p a y m e n t " as ordinarily used by the Treasury Department applies to the payment of United States bonds and notes at maturit]^, while the term "redemption" is ordinarily used to cover payment before maturity pursuant to a call for redemption in accordance with the terms of the bonds or notes. For the purposes of these regulations, however, the terms are used interchangeably, and no distinction need be drawn between them. 25. INTEREST STOPS.—Bonds and notes will cease to bear interest on the date of their maturity, unless called for earlier redemption in accordance with their terms, in which event interest ceases on the date fixed for redemption. 26. COUPON BONDS AND NOTES.—United States bonds and notes in coupon form are payable to bearer, and accordingly payment will be made in due course to the person surrendering them for redemption. Coupon bonds or notes which have become due and payable, whether on maturity or by virtue of a call for redemption, should be presented and surrendered to the Treasurer of the United States in Washington, or to any Federal Reserve.Bank or branch thereof, at the expense and risk of the holder, and should be accompanied by appropriate written advice. All interest coupons due and payable on or before the date of redemption should be detached from the bonds or notes and collected in ordinary course. Coupon bonds or notes called for redemption prior to maturity should, when surrendered, have all coupons attached which mature subsequent to the date of redemption. If any such subsequently maturing coupons are not so attached, the bonds or 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. 27. REGISTERED BONDS AND NOTES.—Registered bonds and notes which have become due and payable, whether on maturity or by virtue of a call for redemption, should first be assigned to " T h e Secretary of the Treasury for payment," or to " T h e Secretary of the Treasury for redemption," in accordance with the general regulations governing assignments, except as specifically provided in paragraph 48 hereof with respect to bonds and notes registered in the names of two or more persons, and in paragraph 50 hereof with respect to bonds and notes registered in the names of minors. Any such registered bonds or notes should, after assignment, be presented and surrendered to the Treasury Department, Division of Loans and^Currency, Washington, D. C , or to any Federal Reserve Bank or branch, at the expense and risk of the holder, and should be accompanied by appropriate written advice. If assignment for redemption is made by the registered holder of record, payment will be made to such registered holder at his last address of record, unless written instructions to the contrary are received from such registered holder. If 202 REPORT ON THE FINANCES. assignment for redemption is made by an assignee holding under proper assignment from the registered holder of record, payment will be made to such assignee at the address specified in the form of advice. Assignments in blank, or other assignments having similar effect, will be recognized, and in that event payment will be made to the person surrendering the bonds or notes for redemption, since under such assignments the bonds or notes become in effect payable to bearer. In case it is desired to have payment of registered bonds or notes made to some one other than the registered holder of record, without intermediate assignment, the bonds or notes may be assigned to " T h e Secretary of the Treasury for redemption for account of ," but assignments (Here insert name and address of payee desired.) in this form must be completed before acknowledgment and not left in blank. ASSIGNMENTS OF REGISTERED BONDS AND NOTES.^ EXECUTION OF ASSIGNMENTS. 28. Assignments of United States registered bonds must be executed by the registered owner or his duly authorized representative, who should go before one of the officers authorized by the Secretary of the Treasury to witness assignments, establish his identity, and in the presence of such witnessing officer execute an assignment on the form appearing on the back of the bond. If the assignment is made by anyone other than the registered owner, appropriate evidence of the authority of such person must be produced and must accompany the bond, unless already on file with the Treasury Department. All assignments must be dated according to the date of their execution and all signatures should be in ink. 29. DETACHED ASSIGNMENTS.—Detached assignments will not be recognized or accepted. Any assignment not made upon the bond is considered a detached assignment. 30. ADDITIONAL ASSIGNMENTS.—If a registered bond is assigned to a specified person, the same regulations govern further assignments by such assignee, or subsequent assignees, as apply to the original assignment by the registered owner. Where assignments are required in addition to those for which provision has been made on the backs of the bonds, a brief form, substantially as follows, may be written or printed on the back of each bond: For value received hereby assign to the within registered bond and authorize its transfer onthe books of the Treasury Department. I Executed in my presence by owner of the within bond. Dated ,19.. (Signature.) , known or proved to me to be the , (Signature.) [SEAL.] , (Official title.) 1 Since no notes in registered form are now outstanding unmatured, notes are not specifically covered in the remainder of this title, but the provisions hereof will apply equally to registered notes if any should be issued. SECRETARY OF T H E TREASURY. 208 31. ASSIGNMENTS BY MARK.—Signatures to assignments of bondsmade by mark (X) must be witnessed by at least one person, in addition to the officer before whom the assignments are acknowledged.' FORM OF ASSIGNMENT. 32. Assignments of registered bonds may be made to a specified person, or in blank, or may be made to the Secretary of the Treasury for transfer to a specified person, or to the Secretary of the Treasury for exchange for coupon* bonds. Registered bonds assigned in blank, or bearing assignments for exchange for coupon bonds which do not restrict delivery, are in effect payable to bearer and lack.the protection of registration, since title thereto may pass by delivery without further assignment. The Treasury Department therefore can grant no relief on account of the loss or theft of bonds so assigned, and will not enter caveats against their transfer, exchange, or payment even though reported lost or stolen. WITNESSING OFFICERS. 33. OFFICERS AUTHORIZED TO WITNESS ASSIGNMENTS.—The following officers are authorized to witness assignments of United States registered bonds: Judges and clerks of United States courts; United States district attorneys; United States collectors of customs; United States collectors of internal revenue; Executive officers of Federal Reserve Banks located in Boston, New York, Philadephia, Cleveland, Richmond, Atlanta, Chicago,. St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco, - and of the brancnes thereof; Executive officers of Federal Land Banks; Executive officers of banks and trust companies incorporated in the United States, or its organized territories, and the branches thereof, domestic and foreign; Executive officers of incorporated banks and.trust companies in the insular possessions of the United States doing business under Federal charter or organized under Federal law; Commanding officers of the Army, Navy, and Marine Corps of the United States (for members of the Military and Naval Establishments of the United States); Diplomatic and consular representatives and commercial attaches of the United States on duty abroad; and Certain officers of the United States Treasury at Washington. A postmaster designated to receive postal savings deposits is authorized to witness assignments of postal savings bonds. 34. UNAUTHORIZED OFFICERS.—A notary public, a judge or cleric of a State court, a justice of the peace, or a commissioner of deeds is not authorized to witness assignments. In the event that none of the officers authorized to witness assignments is readily accessible, the Secretary of the Treasury will, upon application, make special provision for the particular case. 35. AUTHORIZED OFFICERS IN FOREIGN COUNTRIES.—In a foreign country assignments should be made before a United States diplomatic or consular representative, or commercial attache, or an executive officer or manager of a foreign branch of a bank or trust 62166—Fi 1923 ^15 2.04 R E P O R T ON THE FINANCES. . company incorporated in the United States; if such an officer is not available, assignments may be made before a notary or other officer authorized to administer oaths, but his official character and jurisdiction must be certified by a United States diplomatic or consular officer or commercial attache, under the seal of his office. 36. INSTRUCTIONS TO WITNESSING OFFICERS .-^Witnessing officers must satisfy themselves as to the identity of the person executing the assignment, and the person executing the assignment must actually appear before the witnessing officer. Witnessing officers will be held to strict accountability in these respects, and will be expected to respond in the event oi any loss resulting from want of care on their part. In all cases the witnessing officer must affix to the assignment nis official signature, title, address, and seal, and the date of the assignment; officers of incorporated banks and trust companies must affix the seal of the bank or trust company. If the officer does not possess an official seal, that fact should be made known and attested. A postmaster will use his postal savings office stamp in lieu of a seal in taking acknowledgments of assignments of postal savings bonds. No officers of the United States, at home or abroad, except clerks of the United States courts, are authorized to charge a fee for witnessing assignments of United States registered bonds, and banking institutions generally impose no charge for the service. 37. ASSIGNMENTS EXECUTED BEFORE INTERESTED PERSONS.— Neither the assignor nor the assignee upon the assignment of a registered bond should act as attesting officer, nor should the officer of a bank who executes an assignment in the bank's name attest such assignment. I t is not regarded as improper, however, for a bank officer to attest an assignment to the bank, or an assignment by the bank which is executed in its behalf by another officer. IRREGULARITIES IN ASSIGNMENTS. 38. ALTERATIONS AND ERASURES.—No alteration or erasure should be made in any name or writing on any part of an assignment, and any alterations or erasures appearing in assignments will have to be explained to the satisfaction of the Treasury Department. In case a name has been placed upon the line intended for the name of the assignee in an assignment form, in error or otherwise, and it is not desired t h a t the bond be transferred to the assignee named, an assignment by such assignee will ordinarily be required, as well as a new assignment by the registered owner in case the first assignment is not properly or completely executed. . For assignments to correct errors in inscriptions, see paragraph 9 hereof. 39. INCOMPLETE AND IMPERFECT ASSIGNMENTS.—Where an assignment appears to be complete on its face, but has not been completed by delivery, a disclaimer from the erroneously named assignee snould be written upon the bond and acknowledged by him in the presence of an officer authorized to witness assignments. The disclaimer may be in substantially the following form: I, .-.., the first-named assignee oh the within bond, do hereby affirm (Name.) that the assignment to me herein has not been completed by delivery, and I do hereby disclaim any and all interest in and to said bond. (Signature.) '(r)ate.j SECRETARY OF THE TREASURY. 205 Where an assignment has been acknowledged before an unauthorized officer, or is otherwise imperfect, it should not be canceled or erased, but the assignor should appear before an authorized officer and execute a new assignment to the same assignee. If the second assignment is made to an assignee other than the assignee named in the first assignment, a disclaimer from the first-named assignee, following the form given above, should be obtained. If in any case an assignment has been written upon the bond but for some reason has not been completed by delivery, and the assignor executes a second assignment on the bond to a different assignee but can not obtain a disclaimer from the first-named assignee, affidavits should be submitted to the Department setting forth that fact and all other material facts and circumstances relating to the transaction, and in particular showing that the first assignment was never completed by deliyery and that no right, title, or interest in the bond passed thereunder to the person named therein as assignee. 40. FORGED ASSIGNMENTS.—No title passes by a forged assignment of a registered bond, even though the purchaser has purchased in good faith and for value, and the Treasury Department can not recognize a forged assignment for any purpose. Upon receipt of notice that a registered bond bears a forged assignment the Treasury Department will immediately enter a caveat against its transfer, exchange, or payment. Where the Department has already made transfer, exchange, or payment of a registered bond on the basis of an assignment which IS subsequently proven to be a forgery, it will grant appropriate relief to the true owner and proceed against those responsiDle on the assignment, in the following order: (1) the person committing the forgery, (2) the officer witnessing the forged assignment, and (3) the person presenting the bond to the Department, on his implied warranty of title. In accordance with the general principles of law, a person presenting United States registered bonds to the Department for transfer, exchange, or payment gives an implied warranty of title to the United States, and is, therefore, liable to the United States in case the assignment on which the transfer, exchange, or payment is effected is found to be forged or otherwise defective. 41. ASSIGNMENTS AFFECTED BY FRAUD.—Where the assignment of a registered, bond is secured by fraudulent representations, the Treasury Department can grant no relief if the assignment has been honored without notice of the fraud. Otherwise the-Department, upon receipt of notice that the assignment is claimed to have been secured by fraudulent representations, will take the position of a stakeholder and make a notation against the transfer, exchange, og payment of the bond and the payment of interest thereon, and when the bond is presented will call upon the owner and the person presenting the bond to substantiate their respective claims. If it then appears to the satisfaction of the Department that the person presenting the bond stands in the position of a bona fide holder for value the Department, after giving the owner an opportunity to assert his claim, will pass the bond for transfer, exchange, or payment, as the case may be, without further question. In other cases the Department, if satisfied on the evidence presented that the assignment is aft'ected by fra;ud, or in any case where the facts do not clearly appear, will withhold action on the assignment pending a settlement of the case by agreement between the parties, or judicial proceedings if necessary. 206 REPORT ON T H E FINANCES. ASSIGNMENTS BY MARRIED WOMEN. 42. A married woman's Christian name must always be used and not her husband's. If a bond stands in the maiden name of a woman who has since married and it is desired (1) to assign the bond for transfer or exchange, or (2) to correct the registration record, the bond should be appropriately assigned in such manner that both the maiden name and married name appear in the signature to the assignment; e. g.. Miss Mary Jones, now by marriage Mrs. Mary JBrown. 0 ASSIGNMENTS IN CASE OF DEATH OF REGISTERED HOLDER. 43. W I T H ADMINISTRATION.—In case of the death of the holder of registered bonds, if the decedent leaves a will which is -duly admitted to probate, or dies intestate and the estate is administered in a court of competent jurisdiction, assignment may be made only by the duly appointed representative of the estate. Assignment made by an executor or administrator, or other duly appointed representative, should be supported by a duly executed certificate under seal of the court appointing such representative, dated not more than six months prior to the execution of the assignment, showing the appointment and qualification of such representative and that, the appointment was still in force; or, in the absence of such a certificate, by duly certified copies of the representative's letters of appointment, the certification of which should be dated not more than six months prior to the execution of the assignment and should show that at the date of certification the appointment was still in force. The form of assignment by legal representatives should be substantially as follows: '^Estate of John Smith, by Henry Jones, administrator." Where there are two or more legal representatives, all must unite in the assignment unless by express statute or decree of court or by testamentary provision some one or more of them may dispose of the bonds. Where an estate has been finally settled in the court having jurisdiction and the representative discharged, and it is subsequently discovered that registered bonds owned by the estate have not been assigned, if a final account has been allowed or an order of distribution has been entered, determining the ownership of such bonds to be in a particular person, new bonds may be issued in the name of such person without formal assignment of the decedent's boijds, upon submission of certified copies of the g,ourt records in the matter.. In the absence of such account or order, the proper course is to reopen the administration, if possible under the local law, and obtain an assignment by the executor or administrator; where such procedure is impossible an administrator de bonis ?^o?^ should be appointed. See further, paragraph 58 as.to assignments by executors or administrators to themselves individually. 44. WITHOUT ADMINISTRATION.—If the holder of registered bonds dies intestate and no legal representative of the decedent's estate is appointed, and either the gross value of the estate, both real and personal, does not exceed $500, or it appears to the satisfaction of the Secretary of the Treasury that administration of the estate of the decedent is not required in the State of the decedent's domicile, assignnients by the person or persons entitled to the bonds under the SECRETARY OF" THE TREASURY. 207 laws of the State of the decedent's domicile may be recognized without administration, upon presentation of proof satisfactory to the Secretary of the Treasury that the debts of the decedent and of his estate have been paid or provided for, and that such person or persons are entitled to the bonds. Such proof will, in general, include affidavits of the persons claiming to be entitled, setting forth the facts in detail, supported by affidavits of at least two disinterested persons, having personal knowledge of such facts, and by the official certificate or other proof of the death of the registered holder. (Use Form L. & C. 285, p. 79.) Wherever possible the supporting affidavits should be executed by public officers of the United States, or executive officers of incorporateci banks or trust companies, and where this is not possible the affidavits of the persons claiming to be entitled should so state. If the gross value oi the estate exceeds $500, the , Secretary of the Treasury may further require 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. If in any such case any of the persons entitled are minors or under disability, no assignment without administration will be permitted except to them, or upon compliance with the Treasury Department regulations as to assignments by or for such persons, or upon proof satisfactory to the Secretary of the Treasury that the right, title, and interest of such minors or incompetents in and to the bonds are properly provided for. The Secretary of the Treasury may in any case require such other and further evidence as may be deemed necessary and may also require a bond of indemnity with satisfactory sureties. The form of assignment by heirs in cases of distribution without administration should be substantially as follows: ^^Estate of John Smith, deceased, by Mary Smith, sole heir." If more than one heir, the assignment should read: ^^Estate of John Smith, deceased, by Mary Smith, Helen Smith, and George Smith, sole heirs." 45. D E A T H OF FOREIGN REGISTERED OWNER.—Where the holder of a registered bond was at the time of his death a resident of a foreign country, the representative executing an assignment of any bonds standing in his name must furnish a copy of the will or other instrument under which the assignment is made, and a copy of the letters of appointment or other authority under which he purports to be acting. All of said documents must be duly certified or authenticfated under the hands and official seals of the proper governmental officers of the country of which the decedent was a resident, and must in addition be attested by the certificate of a United States diplomatic or consular officer or commercial attache, or, if there be none accessible (which fact must, in that case, be duly certified), by the certificate of a notary or other officer authorized to administer oaths, to the effect that the will or other instrument is executed in due form according to the laws of that country and that the letters of appointment or other authority of the party making the assignment are also in due form and granted by the proper tribunal or officer. All legal documents executed abroad in a foreign language must be accompanied by accurate translation thereof into the English language, certified in accordance with paragraph 13 hereof. 208 REPORT ON TflE FINANCES. ASSIGNMENTS IN CASE OF DISABILITY OF REGISTERED HOLDER. 46. In case of the mental disability or other legal incompetency of the holder of registered bonds, assignments may be made by the guardian or conservator, or other legally appointed representative of the holder's estate, upon presenting proof satisfactory to the Secretary of the Treasury of his appointment and authority to assign: Provided, however, That in cases where the registered holder has been iudically declared incompetent or insane and no guardian or other legal representative has been appointed for his estate, and the entire gross value of the incompetent's estate, both real and personal, does not exceed $500, assignments by a member of the incompetent's famil}^ standing in the position of voluntary guardian to such incompetent may be recognized upon presentation of proof satisfactory to the Secretary of the Treasury that the proceeds of the bonds so assigned are necessary and are to be used for the purchase of necessaries for the incompetent or for his wife or minor children or other persons dependent upon him for support. ASSIGNMENTS OF BONDS REGISTERED IN THE NAMES OF TWO OR MORE PERSONS. 47. F O R TRANSFER OR EXCHANGE INTO COUPON BONDS.—When bonds are registered in the names of two or more persons in substantially the form ^^John Jones and Mary Jones," or '^John Jones or Mary Jones," or ^^ John Jones and Mary Jones, or the survivor," the bonds are deemed to be held in joint ownership, with right of survivorship, and during the lives of the co-owners the Treasury Department will require assignments by all in cases of transfer or excmange into coupon bonds. I n case of the death of any such co-owner the Department will, upon satisfactory proof of death and survivorship, recognize the survivor or survivors as owners, and will honor assignments by such survivor or survivors without regard to any administration of the estate of the deceased co-owner. Bonds should not be registered in the form ^' ^ John Jones or Mary Jones, or either of them," but if so registered assignments by all the co-owners will be rec^uired in cases of transfer or exchange into coupon bonds and no right of survivorship will be recognized. 48. FOR REDEMPTION.—The provisions of the foregoing paragraph shall apply with like effect to assignments for redemption, except that where bonds are registered in the names of two or more persons in the alternative, as, for example, ^^John Jones or Mary Jones," or ^^ John Jones or Mary Jones, or either of them," or ^'John Jones and Mary Jones or either of them," assignments for redemption may be made by any one of the co-owners, and, except further, that where bonds are registered in the names of two or more persons, whether jointly or in the alternative, and payment is to be made by Treasurer's check or check of a Federal Reserve Bank, drawn payable to all the co-owners in exactly the form of the inscription appearing on the bonds, assignments to the Secretary of the Treasury for redemption may be executed by any of the co-owners without requiring the signatures of all. For general instructions as to the redemption of bonds and notes, see paragraphs 24 to 27. SECRETARY OF THE TREASURY. 209 ASSIGNMENTS W H E R E R E G I S T E R E D HOLDER IS A MINOR. 49. F O R TRANSFER OR EXCHANGE INTO COUPON BONDS.—Bonds registered in. the name of a minor without raore, or in the name of a minor by a natural guardian, as, for example, ^^John Jones, minor, by Henry Jones, natural guardian," or in the name of a legal guardian for a minor, may be assigned for transfer or exchange into coupon bonds during minority only by the guardian legally appointed by a court of competent jurisdiction, or otherwise legally qualified, or ursuant to order or decree of a court of competent jurisdiction: ^rovided, however, That in cases where such bonds 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 may be recognized upon presentation of prooi satisfactory to the Secretary of the Treasury that the proceeds of the bonds so assigned are necessary and are to be used for the support or education of the minor, (Use Form L. & C. 302, page 83.) The Secretary of the Treasury may also require in any such case a bond of indemnity with satisfactory sureties. In the event that bonds 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 ^Mohn Jones, natural guardian of Henry Jones, a minor," or a substantially similar form, assignments for transfer or exchange into coupon bonds 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 b y the Treasury Department without requiring proof of his appointment or authority to iact: 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 paragraph 58 of these regulations. 50. F O R REDEMPTION.—The provisions of the foregoing paragraph apply with, like effect to assignments for redemption, except that where there is no legal guardianship and bonds are 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," and the minor's total holdings of registered bonds of the issue presented for redemption.do not exceed $250, the bonds may be assigned by the minor himself to ' ' T h e Secretary of the Treasury for redemption" in cases where the minor is of sufficient competency and understanding, in the opinion of the witnessing officer, to sign his name to tne assignment and comprehend the nature thereof, or by the natural guardian of the minor in cases where the minor is not of sufficient competency and understanding: Provided, That where the registration is in the name of the minor by his naturar guardian, the natural guardian must always join in the assignment for redemption. Redemption of the bonds pursuant to ? 210 REPORT ON T H E FINANCES. such assignments is deemed to be manifestly in the minor's interest, and the acknowledgment of the minor's signature by the witnessing officer will be taken to be sufficient evidence of his competency and understanding. In every case where the minor is not of sufficient competency and understanding, in the opinion of the witnessing officer, to sign his name to the assignment and comprehend the nature thereof, the bonds must be accompanied by an application by the natural guardian, certified by the witnessing officer. (Use Form P. D. 700, p. 88.) The assignments in all cases arising under this paragraph must be made to ''The Secretary of the Treasury for redemption," and the checks issued in payment of the bonds thus surrendered for redemption will be drawn in accordance with the registration of the bonds surrendered.. For general instructions as to the redemption of bonds and notes, see paragraphs 24 to 27. 51. ASSIGNMENTS AFTER MAJORITY.—No assignment of any bonds by the legal or natural guardian of the minor for exchange, or for transfer to any person other than the ward, or for redemption, will be recognized after notice of the attainment of majority by the ward, or of the termination of the guardianship, unless the ward joins in such assignment. 52. COLLECTION OF INTEREST.—In order to permit the cashing of interest checks by one of the parents of a minor where bonds have been registered in the name of a minor for whose estate there is no legally qualified guardian, application should be made by the parent, supported by proper affidavit (Use Form L. & C. I l l , p. 67), for the reissue of the bonds in the name of the minor under the natural guardianship of one of the parents. Interest checks will then be drawm in the same form as the registration. Interest checks which may have been received by such natural guardian before the reissue should be submitted for correction with the bonds. ASSIGNMENTS BY ATTORNEY. 53. An owner of registered bonds may, by duly executed power of attorney, appoint an attorney-in-fact to assign the bonds. The original power of attorney must in all cases be filed with the Treasury Department, Division of Loans and Currency, Washington,^ D. C. A power need not be re-executed for subsequent transactions under the same power if appropriate reference is made thereto. The Secretary of the Treasury may, however, require evidence that a power of attorney is still in full force and effect at the time the Department is requested to act thereunder. Powers of attorney authorizing the assignment of registered bonds must be executed and acknowledged in the presence of one of the officers authorized to witness assignments of registered bonds. (See paragraph 33.) An assignment by an attorney-in-fact to himself individually will not be recognized, unless the power specifically so authorizes. Assignments by attorneys-in-fact should be signed in form substantially as follows: " J o h n Jones, by Henry Smith, attorney-in-fact." The Revenue Act of 1921 requires that a 25-cent revenue stamp be affixed to any power of attorney executed in the United States and granting authority to do or perform any act for or in behalf of the grantor, which authority is not otherwise vested in the grantee. If a power of attorney for assignments of registered bonds is executed by an individual regis- SECRETARY OF THE TREASURY. 211 tered owner, Form P. D. 1001 (p. 89) should be used for general powers, and Form P. D. 1002 (p. 91) for specific powers. Regulations governing the execution of powers of attorney by corporations. and references to the appropriate forms of powers of attorney for use by corporations are contained in paragraphs 61 and 63. In general, pov/ers of attorney to assign bonds given by an executor or administrator or other representative will be recognized only when authority to grant such power is expressly given to the executor or administrator by the will or by order of a court of competent jurisdiction. Proof of such authority in the form of a certified copy of the will or court order must accompany the bonds. 54. POWERS OF ATTORNEY EXECUTED IN A FOREIGN COUNTRY.— Powers of attorney executed in a foreign country should be acknowledged before an offxcer authorized to witness assignments of United States registered bonds. (See paragraph 35.) Seals of acknowledging and certifying officers must always be impressed. Where, in a foreign country, it is the custom to file powers of attorney in public offices and furnish certified copies therefrom, a.certified copy oi such a power of attorney, properly authenticated by a United States diplomatic or consular officer or commercial attache, authorizing assignments by an attorney-in-fact, may be accepted, but in all other cases the original power of attorney must be filed with the Department. 55. REVOCATION OF POWERS OF ATTORNEY.—A power of attorney ma}^ be revoked by death of the grantor, or by formal revocation executed by the grantor and filed with the Treasur}^ Department, Division of Loans and Currency, Washington, D. C. Revocation will not be efi'ective until formal notice of revocation, or of the death of the grantor, has been received by the Department. Notice of revocation, or of the death of the grantor, if relating to a transaction pending in the Department, may be sent by telegram, or otherwise expedited, with request that the transaction be suspended temporarily pending the receipt of formal notice. 56. POWERS OF SUBSTITUTION.—The provisions of these regulations governing powers of attorney apply also to powers of substitution. Unless the original power to assign bonds includes express power to appoint one or more attorneys for the purpose, the Department will not accept a power of substitution thereunder. The original power must accompany the power of substitution unless it has previously been filed with the Department. For powers of substitution under powers of attorney conferring general or specific authority to assign bonds. Forms P. D. 1005, p. 97, and P . D. 1006, p. 99, respectively, should be used. For powers of substitution b}^ corporations, see paragraph 63. A S S I G N M E N T S BY PERSONS ACTING IN A REPRESENTATIVE CAPACITY. 57. W H E R E BONDS ARE REGISTERED IN NAME OF TRUSTEE, EXEC- UTOR, ETC.—Where United States bonds are registered on the books of the Treasury Department in the name of a trustee, executor, administrator, attorney-in-fact, or officer of a corporation or of an incorporated or unincorporated association, lodge, or other organization, and the registration shows the representative capacity, as, for example, " J o h n Jones, Administrator of the Estate of Henry Jones, deceased," "Mary Smith, Trustee under the will of John Smith," or 212 REPORT ON T H E FINANCES. in a similar form, assignments by the person so named, when executed under the representative title in the same wording as appears in the registration, will be recognized by the Treasury Department without requiring further proof of appointment and authority tc) act. If the form of registration gives only the title and not the name, assignments in the identical form of the registration will be recognized when made by the holder of the office designated therein, but only upon proof of his appointment and qualification. In such cases, if the appointment is made by a court, a certificate of appointment, duly certified under seal of the court, must be furnished. If the registration is in the title of an officer of a corporation or of an incorporated or unincorporated association, the proof must be in the form of a certificate of incumbency signed by two executive officers of the corporation or unincorporated association and bearing the seal of the corporation or association, if there is a seal, or if not, verified by the affidavits of the officers signing the certificates. No assignment by any such trustees, officers, or other representatives to themselves individually, or by any such persons acting jointly to one or more of their number individually, will be recognized except as provided by paragraph 58 hereof. Bonds inscribed in the names of individuals, estates, or corporations, followed by the names and titles of the representatives, agents, or officers, as, for example, " J o h n Jones, by Henry Smith, Trustee," " E s t a t e of John Jones, by Henry Smith, Executor," or " T h e Freestone Granite Company, John Smith, Treasurer," are deemed to be registered in the names of such individuals, estates, or corporations, and not.in the names of the representatives, agents, or officers, and nothing herein contained shall be deemed to affect the general requirement that if assignments of United States registered bonds are made by any person other than the registered owner, appropriate evidence of his authority must be produced and must accompany the bonds unless already on file with the Secretary of the Treasury. 5S. ASSIGNMENTS BY TRUSTEES, EXECUTORS, ETC., TO THEMSELVES INDIVIDUALLY.—An assignment of a bond by a trustee, executor, administrator, guardian, agent, attorney-in-fact, or officer of a corporation or unincorporated association, lodge, or other organization, or other representative, to himself individually, or an assignment by any such persons acting jointly to one or more of their number individually, will not be recognized by the Treasury Department, and no transfer will be made upon such assignment, except upon presentation of a duly certified copy of an order of a court of competent jurisdiction authorizing the assignment; except that where any such representative derives his authority from a written instrument and is not appointed by, or under the control of, a court, as, for example, an attorney-in-fact, assignments to himself individually will be recognized only if accompanied by the original instrument of authority expressly authorizing such assignment, and that where the representative is an officer of a corporation or of an incorporated or unincorporated association, lodge, or society, assignments to himself individually will be recognized if accompanied by a resolution of the governing body of the corporation or association, expressly authorizing the assignment. Where assignments to themselves individually have been inadvisedly executed and the bonds forwarded for transfer without the required order of court having SECRETARY OF T H E TREASURY. 213 been first obtained the bonds will be retained and action suspended until a duly certified copy of a proper order of court ratifying and confirming the assignment so made, giving the date of assignment and describing the bonds by loan, number, and denomination, is furnished to the Secretary of the Treasury. The order of court authorizing or ratifying the assignment may be in substantially the following form: PROBATE COURT, County of ; In the matter of the estate of Richard Roe, deceased. At a Probate Court held in and for the County of ', State of , on the day of -, 19—. Upon the petition of John Doe, administrator (executor, etc.) of the estate of the above-named decedent, and upon all the proceedings herein, it having been made to appear to the satisfaction of the court that the said John Doe is justly and legally entitled in his own right to United States registered : bonds, in (Title of loan.) the amounts of each, numbered a-nd , and inscribed in the name of said Richard Roe; now, therefore, It is ordered, adjudged, and decreed thiit the said John Doe, as such administrator (executor, etc.) be, and he is hereby, authorized to execute an assignment of said bonds to himself individually [or, that the assignment of said bonds heretofore executed on the day of , 19—, by said John Doe, as such administrator (executor, etc.) to himself individually, be, and the same hereby is, in all respects ratified and confirmed], to the end that he may have new bonds, issued in his name and his title thus perfected. ^^ , Judge. The clerk of the court should certify to the official character of the judge, the genuineness of his signature, and the correctness of the copy, and impress the seal of the court, and the judge should make a like certificate as to the authority and signature of the clerk. 59. ASSIGNMENTS TO SUCCESSORS.—Where bonds registered . in the name of a trustee, guardian, executor, adminstrator, or officer of a corporation or unincorporated association, lodge, or other organization are assigned to a successor in office, satisfactory proof of successorship must be furnished, but no assignment to such successor will be required and assignments by him wul likewise be recognized upon proof of successorship. 60. DISCREPANCIES IN NAMES.—Where a discrepancy occurs between the name of the registered owner as it appears on the bond and as it appears in the certificate of appointment or other evidence of authority of the legal representative, a certificate of court will ordinarily be required establishing the identity of the registered owner with the person named in such certificate of appointment or other evidence of authority. If the discrepancy is slight, it may be explained by affidavits of persons familiar with the facts. (Use Form P. D. 385, p. 87, or a substantially similar form.) Where a discrepancy occurs between the signature of any person acting in a legal representative capacity as it appears in the assignment and his name as it appears in the certificate of appointment or other evidence of authority, satisfactory proof by affidavit of his.identity must be furnished. ASSIGNMENTS OF BONDS REGISTERED IN THE NAME OF AN INCORPORATED BODY. 61.. GENERAL PROVISIONS.—Bonds registered in the name of a corporation may be assigned by an officer or officers duly authorized for the purjDose by resolution of its governkig body, usually the board 214 REPORT-ON THE FINANCES. of directors or other body vested with like power, or by persons other than officers acting under power of attorney executed by a duly authorized officer under the authority of a similar resolution. (For resolutions, use Forms P. D. 1009 or 1010, at pp. 105 and 107, and for powers of attorney use Forms P. D. 1003 or 1004, at pp. 93 and 95.) If a resolution authorizing assignments of bonds is adopted by any board or body other than the governing body of the corporation, the authority of such board or other body should be shown by a certified copy of the instrument from which it derives its powers, as, for example, the corporate charter, by-laws, or resolution of the higher governing body. The entire instrument need not be submitted, b u t only an extract therefrom certified under the corporate seal showing that such board or other body is clothed with the power to pass such resolution. The approved form of signature by a corporation to assignments of bonds.registered in the corporate name is as follows: " T h e X Corporation, by A. B., vice-president (or attorneyin-fact, as the case may be), attest C. D., secretary." The corporate seal must always be impressed upon corporate uistruments. If the corporation has no seal, a statement to that effect should be inserted ui the certification, and the certificate should then be verified by two officers of the corporation before a notary public or other officer qualified to administer oaths, who should impress his official seal. 62. B Y OFFICERS OF THE CORPORATION.—Resolutions should set forth the name of the officer authorized, as well as his official title and the name of the corporation, as, for example, "Arthur Brown, Treasurer, Tenth Trust Company, Boston, Mass." If the charter or by-laws of a corporation, or. resolution of its governing board, authorizes the holder of a specified office, without naming him, to execute assignments of registered bonds, a certified copy of or extract from the charter, by-laws, or resolution must be furnished, together with a certificate of incumbency under the corporate seal, setting forth the name of the person holding such office. (Use Form P. D. 1014, p. 115.) Copies of resolutions must be under the corporate seal and be certified by the secretary or other custodian of the corporate records, and in any event by an officer other than the officer executing the assignments in behalf of the corporation. When more than one officer is authorized by resolution to assign bonds on behalf of a corporation, the resolution should clearly show whether the authority is joint, or joint and several. If the resolution does not clearly show the authority to be joint and several, it will be regarded as joint, and the signatures of all officers mentioned therein will be required to an assignment of bonds on behalf of the corporation. If authority is intended to be conferred upon a specified number of the officers designated in the resolution, the number should be stated, as, for instance, " a n y two of them." If authority is to be conferred upon an officer of the corporation to assign bonds held by the corporation in a fiduciary capacity, or which the corporation is empowered to assign as attorney, the resolution should specifically include such power, or a special resolution conferring such power should be furnished. (See Forms P. D. 1011 or 1012, pp. 109 and 111.) In addition to such resolution, a certificate showing the appointment of the corporation as such fiduciary, or an original power of attorney, must be submitted, unless the bonds are registered in the name of the corporation as such fiduciary. For assignment by an officer of a corporation to himself individually, see paragraph 5S. SECRETARY OF THE TREASURY. 215 63. B Y ATTORNEY-IN-FACT.—If authority to assign bonds on behalf of a corporation is to be conferred upon persons otner than officers of the corporation, the governing body should by resolution authorize an officer of the corporation to execute a power of attorney appointing the desired person the attorney-in-fact of the corporation for the purpose. Bonds assigned under such authority. should be accompanied by a certified.copy of such resolution and by the original power of attorney, duly executed and acknowledged hi the presence of one of the officers authorized to witness assignments of registered bonds. If general power to assign any and all bonds is to be conferred. Form P. D. 1003, page 93, should be used. If power to assign specific bonds is to be given. Form P. D. 1004, page 95, should be used. The foregoing provisions applying to powers of attorney in the case of corporations apply substantially to powers of substitution. For powers of substitution by a corporation under general or specific power to assign bonds. Forms P. D. 1007, page 101, and P. D. 1008, page 103, respectively, should be used. 64. MERGERS AND CHANGE OF NAME.—If bonds are registered in the name of a corporation which subsequently merges with another corporation, the new corporate name being different from the name under which the bonds are registered, and the new corporation desires to assign the bonds, such corporation should furnish a certificate establishing the merger, certified to by the public official, board, or commission charged by law with custody of the official corporation records. The signature to the assignment should be substantially as follows: " T h e i Corporation, now by merger the X Corporation, by John Smith, President." The bonds should also be accompanied by the usual resolution of the governing body of the new corporation authorizing assignment as hereinbefore set forth. Similar evidence should be furnished in the event of a change of the corporate name. The Department may in any such case require such further or additional evidence as the circumstances may warrant. ASSIGNMENTS BY MUNICIPAL CORPORATIONS. 65. If bonds are registered in the name of a city, town, county, or other municipal corporation, and the officer making the assignment is designated to perform such acts by the charter or laws from which the city, town, county, or other municipal corporation derives its powers, a certified copy of an extract from such charter or other laws, attested by the clerk of the city, town, county, or other municipal corporation, under his official seal, with proper reference to the particular page or paragraph under which authority is conveyed, must be submitted to the Department. If no officer is designated to perform such acts by the charter or other laws from which the city, town, county, or other municipal corporation derives its powers, or if such charter or other laws require that such acts be authorized by the governing body of the city, town, county, or other municipal corporation, a certified copy of the resolution of the governing body of the city, town, county, or other municipal corporation, authorizing' the officer making tne assigmnent to assign the bonds, will be required. If the charter, law, or resolution authorizes the holder of a specified office, without naming him, to assign bonds, a certificate showing that the person who executes the assignment was at. the time of the assignment the duly qualified holder of the office mtist also be fufhished. (Use Form 216 REPORT ON THE FINANCES. P. D. 1014, p. 115.) This certificate should be signed by the official charged by law with the custody of the records of the election or appointment of municipal officers and should bear his official seal. Assignment by the incumbent of a public office to himself individually of bonds registered in his name in his official capacity, or in the name of the city, town, county, or other municipal corporation, will not be recognized. ASSIGNMENTS BY PARTNERSHIPS. 66. Bonds registered in the names of partnerships should be assigned by a member of the firm, substantially as follows: "Smith and Jones, a partnership, by John Jones, a member of the firm." If the assignment is to be made to one of the partners individually, it should be executed by a partner other than the intended assignee. ASSIGNMENTS BY UNINCORPORATED BODIES. 67. TRADE NAMES.—Where bonds are registered in a trade name, such as " T h e Boston Store," which is unincorporated and owned by a single individual, the assignment should r e a d : " T h e Boston Store, unincorporated, John Jones, sole owner." If owned by a partnership, the. assignment should be "Henry Smith and James Brown, artners, doing business under the name of The Boston Store, by [enry Smith, a member of the firm," or words of similar import. g 68. UNINCORPORATED ASSOCIATIONS, LODGES, AND SOCIETIES.—(a) Where an unincorporated association, lodge, society, or the like has established a form of organization under a charter, constitution, or by-laws, and by virtue of such organization certain boards, officers, or committees have authority to dispose of the property of the association, the usual requirements for assignments of registered bonds will include: (1) A copy of that portion of the charter, constitution, or by-laws establishing the board, officers, or committee and defining their powers, verified by the affidavit of two executive officers of the organization (one of whom should be the secretary or other officer in charge of the records) and under the seal of the association, if it has a seal; and (2) a copy or certificate of the action of the board, officers, or committee authorizing the proposed assignment, verified by the affidavit of two executive officers, as above set forth, and under the seal of the association, if it has a seal. (Use Form P. D. 1013, p. 113.) (6) Where there is no such form of organization, or the organization does not provide for such authority, there should be submitted a sworn extract from the records of a meeting of the members of the association, which must show that the meeting was regularly held, and that a quorum was present, authorizing, by at least a majority vote of those present, certain officers of the association, who must be named, to execute the assignment. This extract should be attested by the secretary or other officer in charge of. the records, and by another executive officer. I t must be under the seal of the association, if it has a seal, and must be sworn to before a notary public, whose official seal should be impressed. (Use Form P. D. 1013, p. 113.) (c) If by the constitution, charter, by-laws, or minutes of meetings of such organization, it is established that power to deal with the funds is vested in certain officers, as, for instance, the president and secretary, without naming them, such officers should make the SECRETARY . OF TCHE TREASURY. 217 assignment and furnish sworn extracts from such documents and properly executed certificates showing them to be the duly elected or appointed incumbents of the office. (Use Form P. D. 1015, p. 117.) (d) If the bonds are registered in the form suggested in paragraph 10-^, assignments may be made by the designated officer or officers, in accordance with paragraph 57, without further evidence of their authority. ASSIGNMENTS UNDER ORDER OR DECREE OF COURT. 69. Transfer, exchange, or payment of United States registered bonds as a result of judicial process, m t h o u t assignment by the registered owner either individually or by duly authorized representative, will be made onl}^ upon the advice of the proper law officers of the Government. Each case will be submitted for decision upon its own merits, but, in general, proof will be required that the court which has acted upon the matter had full and exclusive jurisdiction over the parties and the subject matter, that its judgment in the roceedings has effectively transferred the interest of the registered older, and that the proceedings are not subject to attack by the registered holder or by anyone claiming through or under him in any jurisdiction whatsoever. The proof required will consist, in general, of:—(a) References to the statutes conferring jurisdiction upon the court and prescribing the method in which this jurisdiction is to be exercised; and (b) copies of all court papers necessary to establish the jurisdiction of the court and the due exercise of that jurisdiction in the proceedings in question. Such copies must bear the attestation of the clerk and the seal of the court, if there be a seal, together with a certificate from the judge or chief justice of the court that the. attestation is in due form (see U. S. Revised Statutes, sec. 905). The Department can not attempt to state in advance the particular documents which will be required in each individual case, and each case should therefore be specially submitted. E ASSIGNMENTS BY REPRESENTATIVES OF BANKRUPTS OR INSOLVENTS. 70. If the holder of registered bonds is adjudicated bankrupt, assignment may be made by the trustee in bankruptcy upon proof of his appointment and of approval of his bond. The Treasury Department may in any case require an order of court authorizing the assignment. Assignment by receivers of bankrupts or insolvents must ordinarily be supported by an order of court authorizing the assignment. .For regulations governing assignments by a fiduciary to himself individually, see paragraph 58. INTEREST. PAYMENT OF INTEREST. 71. Interest on United States coupon bonds and notes is payable upon presentation and surrender of the interest coupons appertaining thereto as they severally mature. Interest on United States registered bonds and notes is payable by check drawn on the Treasurer of the United States to the order of the registered holder. Interest 218 REPORT ON THfE FINANCES. checks are prepared by the Department in advance of the interestpayment date and mailed in time to reach the addressee on or about that date. COMPUTATION OF INTEREST. 72. The method of computing interest on United States bonds, notes, and certificates of indebtedness depends on the terms of issue, and the official circular announcing the issue and the text of the securities will indicate whether interest is to be computed on a quarterly, semiannual, or annual basis. If interest is payable quarterly or semiannually, the amount of each quarterly or semiannual interest payment is exactly one-quarter or one-half of a year's interest, as the case may be. For fractional periods the interest computation is made on the basis of the actual number of days witliin the interest period. For convenience in computing accrued interest for fractional periods, Appendix C, pages 39 to 41, inclusive, gives the decimals for one day s interest on $1,000 during each possible quarterly, semiannual, and annual interest period for each of the outstanding issues of United States bonds, notes, and certificates of indebtedness. The amount of interest accruing on any date may be ascertained by multiplying the appropriate decimal in the tables by the number of days elapsed since the last interest-payment date. INDORSEMENT OF INTEREST CHECKS. 73. The regulations of the Treasury Department governing the indorsement and payment of Government warrants and checks, including interest checks, are contained in Treasury Department Circular No. 21, dated October 28, 1913, as amended and supplemented, to which those interested are referred. POWERS OF ATTORNEY TO COLLECT INTEREST. 74. Powers of attorney, with powers of substitution thereunder, and other evidences of authority to indorse and collect interest checks on behalf of the registered owner must be presented to the Treasurer of the United States for examination and then for filing with the General Accounting Office, Washington, D. C Where evidence of authority is already on file in the General Accounting Office, notation of that fact should be made in connection with the presentation of interest checks to the Treasurer. If it is desired that interest checks be mailed to an attorney-in-fact instead of to the registered holder, formal notice of change in post-office address (Use Form L. & C. 228, at p. 77) should be forwarded to the Treasury Department, Division of Loans and Currency, Washington, D. C. NONRECEIPT OR LOSS OF INTEREST CHECKS. 75. If an interest check is not received within a reasonable period after an interest-payment date, or if a check is lost after receipt, the fact of nonreceipt or loss should be reported to the Treasury Departihent. Division of Loans and Currency, Washington, D. C , but all requests for stoppage of payment must be addressed to the Treasurer of the United States, Washington, D. C This notification should SECRETARY OF THE TREASURY. 219 include a description, by loan, issue, serial number, denomination, and inscription, of the registered bonds ov notes upon which the interest check was issued. If the check is subsequently recovered, request for the removal of the stoppage should be sent to the Treasurer of the United States. Duplicates lor lost interest checks may be secured upon compliance with the Treasury Department regulations, as set forth in Treasury Department Circular No. 54, Revised, dated February 15, 1923, to which those interested are referred; LOST, STOLEN, OR DESTROYED INTEREST COUPONS. 76. For regulations governing interest coupons lost, stolen, or destroyed, see paragraph 82 of these regulations. INTEREST ON BONDS OF LOANS AUTHORIZED PRIOR TO JULY 14, 1870. 77. Any interest on registered bonds of the loans authorized previously to the funded loans authorized by the act of July 14, 1870, which may have been returned to the Treasury as imclaimed, can be collected only in person, or by attorney, at the office of the Treasurer of the United States in Washington. For the convenience of the public, powers of attorney to collect such unclaimed interest may be made in favor of the "Chief, Division of Loans and Currency, Office of the Secretary of the Treasury." LOST, STOLEN, DESTROYED, MUTILATED, AND DEFACED BONDS AND NOTES. STATUTES.^ 78. The following statutes of the United States relate to lost, stolen, destroyed, mutilated, and defaced United States bonds and notes, and claims for relief arising in connection therewith: 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, and such bond is identified by number and description, the Secretary of the Treasury shall, under such regulations and with such restrictions as to time and retention for security or otherwise as he may prescribe, issue a 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 original number of the bond destroyed and the date thereof. But when such destroyed or defaced bonds appear to have been of such a class or series as has 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 would have been paid if they had been presented in accordance with 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 which would accrue thereon until the principal becomes due and payable, with two good and suflScient 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 destroyed or defaced bond. (Sec. 3703, Revised Statutes.) Whenever it is proved to the Secretary of the Treasury, by clear and satisfactory evidence, than any duly registered bond of the United States, bearing interest, issued for valuable consideration in pursuance of law, has been lost or destroyed, so that the ' Paragraphs 78 to 88 hereof are substantially similar to paragraphs 1-10 of Treasury Department Circular No. 288, dated May 15, 1922, wliich is superseded by these regulations. 62166—FI 1923 16 220 REPORT ON T H E .FINANCES. 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 owner of such missing bond shall first file in the Treasury a bond in a penal sum equal to the amount of such missing bond and the.interest which would accrue thereon, until the principal thereof becomes due and payable, with two 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 because of the lost or destroyed bond. (Sec. 3705, Revised Statutes.) The word ''bond" or "bonds" whiere 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 Revised Statutes as amended, but in such sections only, shall be deemed to include notes issued under this section. (Sec. 18 (d), Second Liberty Bond Act, as amended.) COUPON BONDS AND NOTES. 79. COUPON BONDS OR NOTES LOST OR STOLEN.—The Treasury De- partment 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 notes 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 payment, 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, and 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 Treasury 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 their own fault or misfortune. Hereafter all bonds, notes, and coupons, payable to bearer, and Treasury notes issued and remaining in blank, will 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 tne Department as to whether or not bonds or notes reported lost or stolen have already been presented, and, if already presented, as to the source from Vs^hich 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. 80. COUPON BONDS OR NOTES DESTROYED OR MATERIALLY DEFACED —^In case of the destruction, wholly or in part, or the material SECRETARY OF T H E TREASURY. 221 defacement, of 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 and 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 partially destroyed, defaced, or mutilated, the portion or portions remaining must be surrendered to the,Department, but should not be forwarded until requested, first being carefully packed to avoid further mutilation. Upon receipt of the report full information with respect to procedure and proof required for relief 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 (4) 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, m t h 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. (See Form P. D. 1022, at p. 119.) No PROOF SHOULD B E S U B M I T T E D UNTIL FULL INSTRUCTIONS AND BLANK FORMS ARE RECEIVED FROM THE TREASURY DEPARTMENT OR THE FEDERAL R E S E R V E B A N K . 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, 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 by the Department for execution, w^ith 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.- I N NO EVENT SHOULD A BOND OF INDEMNITY B E SUBMITTED UNTIL CALLED FOR BY THE DEPARTMENT, AND IT SHOULD BE SUBMITTED THEN ONLY ON THE PRESCRIBED FORM FURNISHED FOR THE PURPOSE, (See Form P. D. 1031, at p. 143.) If relief is granted on account of destroyed, defaced, or mutilated bonds, issued before the Liberty loans, 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 the maturity or redemption date, as the case may be. 222 REPORT ON T H E FINANCES. 81. COUPON BONDS OR NOTES AVITH IMMATERIAL DEFACEMENTS OR MUTILATIONS.—If the defacement or mutilation of a coupon 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. (See Form P. D: 1023, at p. 123.) 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. 82. 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 or notes, however, are customarily handled in the regular course of busmess 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. 83. REGISTERED BONDS 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 quoted, 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 assign SECRETARY OF T H E TREASURY. 223 meiits appearing thereon. Upon discovery of the loss, theft, or destruction, report should immediately be made of the facts, with a full description of the bonds or notes and of any assignments thereon ^ to the Treasury Department, Division of Lpaiis 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: To t h e TREASURY DEPARTMENT, DIVISION OF LOANS AND.CURRENCY, (Date) Washington, D. C. The following registered United States bonds/notes were. .(Brief!3^ state particulars.) on or about (Date.) Titl€ of loan. Denomination. Serial 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 securing relief. (Signature) (Address) 84. REGISTERED BONDS OR NOTES BEARING NO ASSIGNMENTS AND LOST, STOLEN, OR DESTROYED.—^Upou 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; (3) that no assignment, exchange, or transfer of the registered bond or note has been made or authorized by him in person or by attorney; and (4) that the registered bond or note has been lost, stolen, or destroyed, so that the same is not held b y . 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 m^aking siich an affidavit, by the affidavits of two responsible and disinterested persons who are in no manner related to the claimant and wha should, wherever possible, be officers of the United States or executive officers of incorporated banks or trust companies, identifying the a:ffiant 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. (See Forms P. D . 1024, 1025, 1026, 1027, and 1029, at pp. 125, 129, 133, 137, and 141.) 224 KEPORT ON THE FINANCES. No EVIDENCE SHOULD BE SUBMITTED UNTIL FULL 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 b y the Secretary of the Treasury, the relief authorized will be granted. I N 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. (See Form P. D. 1031, at p. 143.) 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, the check in payment to be drawn to the registered owner of record. 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. 85. REGISTERED BONDS OR NOTES BEARING SPECIFIC ASSIGNMENTS AND LOST, STOLEN, OR DESTROYED.—Upou 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 84 hereof for registered bonds and notes bearing no assignments, except that if the ownership of such bonds or notes has passed from tne 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 relief 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 subsequently 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 of 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. 86. REGISTERiClD BONDS OR NOTES ASSIGNED IN BLANK OR FOR EXCHANGE, AND LOST, STOLEN, OR DESTROYED.—Registered bouds or notes assigned in blank, or bearing assignments for exchange for SECRETARY OF T H E TREASURY. 225 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 relief on account of the loss or theft of bonds or 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, but 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 80 hereof for coupon bonds and notes destroyed or defaced, except that the bond of 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. (See Form P.-D. 1024, at p. 125.) The person owning 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 53 hereof. 87. R E G I S T E R E D 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 (see Form P . D. 1028, at p. 139) 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. 88. RECOVERY OF REGISTERED BONDS AND NOTES REPORTED LOST, STOLEN, OR DESTROYED.—When registered bonds or notes previously reported lost, stolen, or destroyed, are recovered, the Treasury Department, Division of Loans and Currency, Washington, D. C , should be immediately notffied in order that the caveats (or notations) placed against the bonds or notes may be removed. T H E REPORT O F R E C O V E R Y , WITH REQUEST FOR REMOVAL OF THE CAVEAT (OR N O T A T I O N ) , 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 AND NOTES RECOVERED. I F THE REGISTERED BONDS OR NOTES AT THE TIME OF LOSS, THEFT, OR DESTRUCTION 226 . REPORT ON T H E FINANCES. AVERE ASSIGNED AND A CAVEAT (OR NOTATION) WAS ENTERED AT THE REQUEST OF THE ASSIGNEE OR I N H I S BEHALF, THE REPORT OF RECOV-. ERY, WITH REQUEST FOR THE REMOVAL OF THE CAVEAT (OR NOTATION), SHOULD B E MADE OVER THE SIGNATURE OF THE ASSIGNEE OR HIS RECOGNIZED REPRESENTATIVE. MISCELLANEOUS PROVISIONS OF L A W AND REGULATIONS. ; PRINCIPAL AND INTEREST PAYABLE IN GOLD. 39. The principal and interest of all United States bonds, notes, and certificates of indebtedness are pa3^able in United States gold coin of the present standard of value. CUMULATIVE SINKING FUND. 90. For the fiscal year beginning July 1, 1920, and for each fiscal year thereafter until all Liberty bonds and Victory notes, and other bonds and notes issued for refunding purposes under any of the Liberty bond acts or the Victory Liberty Loan Act, or under any of such acts as amended, are retired, the Victory Liberty Loan Act appropriates, out of an}^ money in the Treasury not otherwise appropriated, for the purpose of a cumulative sinking fund, an amount equal to the sum of (1) 2^ per cent of the aggregate amount of such bonds and notes outstanding on July 1, 1920, less an amount equal to the par amount of any obligations of foreign governments held by the United States on that date, and (2) the interest which would have been payable during the fiscal year for which the appropriation is made on the bonds and notes purchased, redeemed, or paid out of the sinking fund during such jea,T or in previous 37ears. TAX EXEMPTIONS. 91. FULLY TAX-EXEMPT OBLIGATIONS..—^All outstanding bonds of the United States issued prior to April 24, 1917, and.the 3^ per cent bonds of the First Liberty loan, are exempt, both as to principal and interest, from all taxation, except estate or inheritance taxes, now or hereafter imposed by the United States or its possessions or by any State or local taxing authority. 92. OBLIGATIONS WITH LIMITED TAX EXEMPTION.—All 4 and 4i per cent Liberty bonds and aU Treasury bonds, Treasury notes, and Treasury certificates of indebtedness issued under the Liberty bond acts and now outstanding 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 (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 4 and 4 i per cent Liberty bonds. Treasury bonds. Treasury certificates of indebtedness, war-savings certificates, and Treasury savings certificates, the principal of which does not exceed in the aggregate $5,000, owned by any individual, partnership, association, or corporation, SECRETARY OF THE TREASURY. 227 shall be exempt from the taxes provided for in subdivision (b) above. The 4 and 4J per cent Liberty bonds are also entitled, pursuant to the consolidation (effective January 1, 1921) made by the Revenue Act of 1921 and the proclamation of the President which fixed eJuly 2, 1921, as the date of the termination of the war, 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 additional principal amounts thereof as follows: Up to July 2, 1923: $30,000 of First-Second 4i^s. $125,000 in the aggregate of First 4's, First 4i-'s, 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 of First 4's, First 4i's, First-Second 4i's, Second 4's, Second 4i's, Third 4i's, and Fourth 4i's. 93. E X E M P T FROM TAXES IN HANDS 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. ADDITIONAL PROOF. 94. The Secretary of the Treasury may, in any case arising under these regulations, require such additional proof, by affidavit or otherwise, as may in his judgment be necessary for the protection of the Government's interests, and where action is sought under order or appointment of court, may require evidence that the order or appointment is still in full force and effect at the time the Department is requested to act thereunder, even though not specifically provided for in these regulations. BOND OF I N D E M N I T Y . 95. The Secretary of the Treasury may, in any case arising under these regulations, require such bond of indemnity, with satisfactory surety or sureties, as may in his judgment be necessary for the protection of the Government's interests, e.ven though the filing of a bond of indemnity is not specifically provided for in these regulations. The requirements of the Treasury Department with respect to the acceptance of individual or corporate sureties on such bonds of indemnity as may be called for under these regulations are set forth in the prescribed form of bond of indemnity. The law provides, with respect to corporate sureties, as follows: 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 with one surety or with two or more sureties, the execution of the same or the guaranteeing of the performance of the condition, thereof shall be sufficient when executed or guaranteed solely by a corporation incorporated under the laws of the United States, or of any State having power 228 REPORT ON T H E FINANCES. Co 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. B u t no officer or person having the approval of any bond shall exact that it sh^ll 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 b y the Act approved March 23, 1910i ' AFFIDAVITS. 96. All affidavits submitted in pursuance of these regulations must be acknowledged 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 acknowledgment. The date when the officer's commission expires should appear in any event. Only one certificate is necessary for each officer provided the dates of the beginning and expiration of his commission are shown thereon and such period of commission includes the date of acknowledgment of the affidavit. Affidavits acknowledged before a judge or clerk of court and bearing the seal of the court need not be accompanied by any further certification. PROVISIONS OF PENAL CODE AFFECTING UNITED STATES BONDS AND NOTES. 97. The following sections of the Penal Code of the United. States relate to United States bonds and notes and the transactions covered by these regulations: Forging Bonds, Bids, Public Records, etc. {sec. 28).—Whoever shall falsely make, alter, forge, or counterfeit, or cause or procure to be falsely made, altered, forged, or counterfeited, or willingly aid, or assist in the false making, altering, forging, or counterfeiting, any bond, bid, proposal, contract, guarantee, security, official bond, public record, affidavit, or other writing for the purpose of defrauding the United States; or shall utter or publish as true, or cause to be uttered or published as true, or have in his possession with the intent to utter or publish as true, any such false, forged, altered or counterfeited bond, bid, proposal, contract, guarantee, security, official bond, public record, affidavit, or other wiiting, for the purpose of defrauding the United States, knoHving the same to be false, forged, altered, or counterfeited; or shall transmit to, or present at, or cause or procure to be transmitted to, or presented'at, the office of any officer of the United States, any such false, forged, altered, or counterfeited bond, bid, proposal, contract, guarantee, security, official bond, public record, affidavit, or other writing, knowing the same to be false, forged, altered, or counterfeited, for the purpose of defrauding the United States, shall be fined not more than one thousand dollars, or imprisoned not more than ten years, or both. Forging Deeds, Powers of Attorney, etc. {sec. 29).—Whoever shall falsely make, alter, ' forge, or counterfeit, or cause or procure to be falsely made, altered, forged, or counterfeited, or willingly aid or assist in the false making, altering, forging, or counterfeiting, any deed, power of attorney, order, certificate, receipt, contract, or other writing, for the purpose of obtaining or receiving, or of enabling any other person, either directly or indirectly, to obtain or receive from the United States, or any of their officers or agents, any sum of money; or whoever shall utter or publish as true, or cause to be uttered or published as true, any such false, forged, altered, or counterfeited deed, power of attorney, order, certificate, receipt, contract, or other writing, with i n t e n t to defraud the United States, knowing the same to be false, altered, forged, or counterfeited; or whoever shall transmit to, or present at, or cause or procure to be transmitted to, or presented at, any office or officer of the Government of the United States, any deed, power of attorney, order, certificate,, receipt, contract, or other writing, in support of, or in relation to, any account or claim, with in tent, to SECRETARY OF THE TREASURY. 229 defraud the United States, knowing the same to be false, altered, forged, or counterfeited, shall be fined not more than one thousand dollars and imprisoned not more than ten years. Having Forged Papers in Possession {sec. SO).—Whoever, knowingly and with intent to defraud the United States, shall have in his possession any false, altered, forged, or counterfeited deed, power of attorney, order, certificate, receipt, contract, or other writing, for the purpose of enabling another to obtain from the United States, or from a n y officer or agent thereof, any sum of money, shall be fined not more tnan five hundred dollars, or imprisoned not more than five years, or both. False Acknowledgments {sec. 31).—^Whoever, being an officer authorized to:administer oaths or to take and certify acknowledgments, shall knowingly make any false acknowledgment, certificate, or statement concerning the appearance before him or the taking of an oatii or affirmation b y any person with respect to any proposal, contract, bond, undertaking, or other matter, submitted to, made with, or taken on behalf of, the United States, and concerning which an oath or affirmation is required b y law or regulation made in pursuance of law, or with respect to the financial standing of any principal, surety, or other party to any such proposal, contract, bond, undertaking or other instrument, shall be fined not more than two thousand dollars, or imprisoned not more than two years, or both. False Personation of Holder of Public Stock {sec. 33).—^Whoever shall falsely personate any true and lawful holder of any share or sum in the public stocks or debt of the United States, or any person entitled to any annuity, dividend, pension, prize money, wages, or other debt due from the United States, and, under color of such false personation, shall transfer or endeavor to transfer such public stock or any part thereof, or shall receive or endeavor to receive the money of such true and lawful holder thereof, or the money of any person really entitled to receive such annuity, dividend, pension, prize money, wages, or other debt, shall be fined not more than five thousand dollars and imprisoned not more than ten years. False Demand on Fraudulent Power of Attorney {sec. 34).—Whoever shall knowingly or fraudulently demand or endeavor to obtain any share or sum in the public stock s of the United States, or to have any part thereof transferred, assigned, sold., or conveyed, or to have any annuity, dividend, pension, prize money, wages, or other debt due from the United States, or any part thereof, received, or paid, b y virtue of any false, forged, or counterfeited power of attorney, authority, or instrument, shall be fined not more than five thousand dollars and imprisoned not more than ten years. Making or Presenting False Claims {sec. 35).—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 naA^al service of t h e 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 t h e 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, affidavit, or deposition, knowing t h e same to contain any fraudulent or fictitious statement or entry; or whoever shall enter into 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 naval service, with intent to defraud the United States or willfully to conceal such money or other property, shall 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 for which he received a certificate or took a receipt; 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 knowledge 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. Conspiracy to Commit Offense Against the United States {sec. 37).—If two or more persons conspire either to commit any offense against the United States, or to defraud the United States in any manner or for any purpose, and one or more of such parties do any act to effect the object of the conspiracy, each of t h e parties to such conspiracy shall be fined not more than ten.thousand dollars, or imprisoned not more than two years, or both. Unlawfully Taking or Using Papers Relating to Claims {sec. 40).—Whoever shall take and carry away, without authority from the United States, from the place where it has been filed, lodged, or deposited, or where it may for the time being actually be kept by authority of the United States, any certificate, affidavit, deposition, written 230 . EEPORT ON T H E FINANCES. statement of facts, power of attorney, receipt, voucher, assignment, or other document, record, file, or paper, prepared, fitted, or.intended to be used or presented in order to procure the payment of money from or by the United States, or any officer or agent thereof, or the allowance or payment of the whole or any part of any claim, account, or demand against the United States, whether the same has or has not ialready been so used or presented, and whether such claim, account, or demand, or any part thereof, has or has not already been allowed or paid; or whoever shall present, use, or attempt to use, any such document, record, file, or paper so taken and carried away, in order to procure the payment of any money from or by the United States, or any officer or agent thereof, or the allowance or payment of the whole or any part of any claim, account, or demand against,the United States, shall be fined not more than five thousand dollars, or imprisoned not more than ten years, or both. "Obligation or Other Security of the United States^^ Defined {sec. 147).—The words "obligation or other security of the United States" shall be held to mean all bonds, certificates of indebtedness, national-bank currency, coupons. United States notes, Treasury notes, gold certificates, silver certificates, fractional notes, certificates of deposit,' bills, checks, or drafts for money, drawn by or upon authorized officers of the United States, stamps and other representatives of value, of whatever denomination, which have been or may be issued under any Act of Congress. Forging or Counterfeiting United States Securities {sec. 148).—Whoever, with intent to defraud, shall falsely make, forge, counterfeit, or alter any obligation or other security of the United States shall be fined not more than five thousand dollars and imprisoned not more than fifteen years. Using Plates to Print United States Securities Without Authority, etc. {sec. 150).— ^ ^ -^ whoever shall print, photograph, or in any other manner make or execute, or cause to be printed, photographed, made, or executed, or shall aid in printing, photographing, making, or executing any engraving, photograph, print, or impression in the likeness of any such obligation or other security, •>«• ^ * except under the authority of the Secretary of the Treasury or some other proper officer of the United States, shall be fined not more than $5,000 or imprisoned for not more than fifteen years, or both. Buying, Selling, ov Dealing in Forged Bonds, Notes, etc. {sec. 154).—Whoever shall buy, sell, exchange, transfer, receive, or deliver any false, forged, counterfeited, or altered obligation or other security of the United States, or circulating note of any banking association organized or acting under the laws thereof, which has been or may hereafter be issued by virtue of an^^ Act of Congress, with t h e intent that the same be passed, published, or used as true and genuine, shall be fined not more than five thousand dollars, or imprisoned not more than ten years, or both. Imitating United States Securities or Printing Business Cards on Them {sec. 177).—It shall not be lawful to design, engrave, print, or in any manner make or execute, or to utter, issue, distribute, circulate, or use, any business or professional card, notice, placard, circular, handbill, or advertisement, in the likeness or similitude of any bond, certificate of indebtedness, certificate of deposit, coupon, United States note, Treasury note, fractional note, or other obligation or security of t h e United States which has been or may be issued under or authorized by any act of Congress heretofore passed or which may hereafter be passed; or to write, print, or otherwise impress upon any such instrument, obligation, or security any business or professional card, notice, or advertisement, or any notice or advertisement of any matter or thing whatever. Whoever shall ^delate any provision of this section shall be fined not more than five hundred dollars. OTHER OUTSTANDING EEGULATTONS. CONVERSION PRIVILEGE. 98. Regulations governing the privilege of converting 4 per cent bonds of the First Liberty Loan Converted and of the. Second Liberty Loan into 4^ per cent bonds are contained in Treasury Department Circular No. 137, dated March 7, 1919, as amended and supplemented, to which those interested are referred. The law provides that the conversion privilege may be terminated at any time by the Secretary of the Treasury on six months' public notice. The extension has now been in effect since March 7, 1919, and while it is. desired to afford holders of 4 per cent bonds every reasonable opportunity to take advantage of the conversion privilege, no assurance can be given that the privilege will be continued indefinitely. SECRETARY OF T H E TREASURY. 231 EXCHANGES OF LIBERTY BONDS IN TEMPORARY FORM FOR PERMANENT BONDS. 99. Regulations governing exchanges of coupon Liberty Bonds in temporary form for permanent bonds are eontained in Treasury Department Circular No. 164, dated December 15, 1919, as amended and suppleiriented, to which those interested are referred. Holders of temporary coupon bonds are urged to exchange them for permanent coupon bonds or for registered bonds at the earliest- possible date. Federal Reserve Banks and banks and trust companies generally will advise as to the procedure to be followed in effecting such exchanges. BONDS AND NOTES RECEIVABLE FOR FEDERAL ESTATE AND INHERITANCE TAXES. 100. Regulations governing the acceptance of United States bonds and notes, bearing interest at a higher rate than 4 per centum per annum, in payment of Federal estate and inheritance taxes, pursuant to section 14 of the Second Liberty Bond Act, apjproved September 24, 1917, as amende^, are contained in Treasury Department Circular No. 225, dated January 31, 1921, as amended and supplemented, to which those interested are referred. ACCEPTANCE AS SECURITY FOR PUBLIC DEPOSITS. 101. Regulations governing the acceptance of United States bonds, notes, and certificates of indebtedness as security for deposits of public moneys are set forth in Treasury Department Circular No. 92, dated April 17, 1919, as amended and supplemented, covering special depositaries of public moneys, and in Treasury Department Circular No. 176, dated May 15, 1922, as amended and supplem.ented, covering general depositaries of public moneys, to which those interested are referred. BONDS AND NOTES ACCEPTED IN LIEU OF SURETY. 102. Regulations governing the acceptance of United States bonds a.nd notes as security in lieu of surety or sureties, pursuant to section 1329 of the Revenue Act of 1921, approved November 23, 1921, are •contained in Treasury Department Circular No. 154, dated M'ay 15, 1922, as amended and supplemented, to which those interested are referred. INTERIM CERTIFICATES. 103. Regulations with respect to full-paid Interim Certificates of the First Liberty Loan are contained in Treasury Department Circular No. 118, dated July 12, 1918, to which those interested are referred. COPIES OF REGULATIONS AND FORMS. . 104. Copies of these regulations, and of any other regulations or forms affecting United States bonds and notes, may be obtained upon application to the Treasury Department., Division of Loans and Currency, or to any Federal Reserve Bank. 232 REPORT ON T H E FINANCES. F U R T H E R REGULATIONS. 105. 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 transactions in United States bonds and notes. EXHIBIT 30. [Department Circular No. 322. Public Debt.] P A Y M E N T O F U N C A L L E D ^V4 P E R C E N T V I C T O R Y N O T E S MATURITY. AT TREASURY DEPARTMENT, O F F I C E OF THE SECRETARY, Washington, March 1, 1923. To Holders of 4 i P^^ cent Victory Notes and Others Concerned: 1. Public notice is hereby given that, in accordance with the term& of their issue and pursuant to the provisions of Treasury Department Circular No. 138, dated April 21, 1919, all 4f per cent Victory notes, otherwise known as United States of America Gold Notes of 1922-23, bearing the distinguishing letters G, H, I, J, K, or L, prefixed to their serial numbers, hereinafter termed '^uncalled'' notes, will cease tobear interest on May 20, 1923, on which date the principal of any such notes then outstanding will be payable, together with the interest then, accrued thereon. All 4f per cent Victory notes bearing the distinguishing letters A, B, C, D, E, or F, prefixed to their serial numbers,, hereinafter termed ^^called^' notes, were called for redemption on December 15, 1922, and ceased to bear interest on that date, as provided in Treasury Department Circular No. 299, dated July 26, 1922. Galled 4f per cent Victory notes should promptly be presented for redemption, in order to avoid further loss of interest. . 2. Presentation for Payment At or After Maturity.—(a) Coupon Notes.—Uncalled 4f per cent Victory notes in coupon form should be presented and surrendered for payment to the Treasurer of the United States at Washington, or to any Federal Reserve Bank or branch. 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. 780, hereto attached). The nnal interest coupon, which will become payable on May 20, 1923, should be detached and collected in regular course when due. (6) Reoistered Notes.—Uncalled 4f per cent Victory notes in registered form should be duly assigned to ^^The Secretary of the Treasury for Payment,'' in accordance with the general regulations of the Treasury Department governing assignments, and should b e presented and surrendered for payment to the Treasury Department,. Division of Loans and Currency, Washington, D. C , or to any Federal Reserve Bank or branch. The notes must be delivered in every case at the expense and risk of the holder and should be accompanied b y appropriate written advice (see Form P. D. 781, hereto attached). If assignment for payment is made by the registered owner, pajonent of principal and interest will be made to the registered owner at his SECRETARY OF T H E TREASURY. 233 last address of record, unless written instructions to the contrary are received from the registered owner. If assignment for paymient is made by an assignee nolding under proper assignment from the registered owner, payment of principal and interest will be made to such assignee at the address specified in the form of advice. Assignments in blank, or other assignments having similar effect, will also be recognized, and in that event payment will be made to the person surrendering the notes for payment, since under such assignments the notes become in effect payable to bearer. In case it is desired to have payment of registered notes made to some one other than the registered owner, without intermediate assignment, the notes may be assigned to ' ' T h e Secretary of the Treasury for payment for account of (Here insert name and address of payee desired.) but assignments in this form must be completed before acknowledgment and not left in blank. The transfer books for uncalled 4 | per cent Victory notes will not close prior to May 20, 1923, for the final interest due on that date will not be paid by interest checks in regular course b u t will be covered by payments to be made simultaneously with the payments on account of principal. 3. Presentation Prior to May 20, 1923.—In order to facilitate payment of outstanding uncalled Victory notes, any of the notes may be presented and surrendered in the manner herein prescribed, at any time in advance of May 20, 1923, for payment on that date, and holders are urged to present their notes well in advance so as to get prompt payment at maturity. This is particularly important with respect to registered notes, for payment can not be made until registration shall have been discharged by the Treasury Department, Division of Loans and Currency. 4. Miscellaneous.—Any further information which may be desired as to the payment or redemption of Victory notes 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 of the Treasury. 234 .KEPORT ON T H E TREASURY DEPARTMENT, Division of Loans and Currenc5^ Form P. D. 7S0. FINANCES. . , FORM OP ADVICE TO ACCOMPANY UNCALLED 4f P E R CENT VICTORY N O T E S IN C O U P O N FORM P R E S E N T E D FOR PAYMENT. T o THE F E D E R A L R E S E R V E BANK O F . '.-.., or T R E A S U R E R OF THE U N I T E D STATES, Washington, D . C: Pursuant to t h e provisions of Treasury Department Circular No. 322, dated March 1, 1923, t h e undersigned presents and surrenders herewith for payment on May 20, 1923, $ , face amount, of uncalled 4f per cent Victory notes in coupon form, with all coupons detached, as follows: Number of notes. 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 t h e address indicated below. (Signature) (Address in full) ! (Date) T R E A S U R Y DEPARTiVtENT, Division of Loans and Currency. Form P. D. 781. FORM OF ADVICE TO ACCOMPANY UNCALLED 4f P E R CENT VICTORY R E G I S T E R E D FORM P R E S E N T E D FOR PAYMENT. T o THE F E D E R A L R E S E R V E B A N K OF NOTES IN , or TREASURY DEPARTMENT, Division of Loans and Currency, Washington, D . C : Pursuant to t h e provisions of Treasury Department Circular No. 322, dated March 1, 1923, t h e undersigned presents a n d surrenders herewith for payment on May 20, 1923, I , face amount, of uncalled 4 | per ceiit Victory notes in registered form, inscribed in t h e name of and duly assigned to ' ' T h e Secretary of t h e Treasury for payment," as follows: Number of notes. Denomination. S50 100 500 1,000 5,000 10,000 50,000 100,000 Serial numbers of notes. Face amount . Total and requests that remittance covering payment therefor be forwarded to t h e undersigned a t t h e address indicated below. (Signature) (Address in full) ' (Date) SECRETARY OF THE TREASURY. EXHIBIT 235 31. [Department Circular No. 317. Loans and Currency.] SUBSCRIPTIONS F O R 4 i P E R CENT T R E A S U R Y BONDS OF 1947-52 IN DEFAULT. TREASURY DEPARTMENT, O F F I C E OF THE SECRETARY, Washington, December 30, 1922. Pursuant to the provisions of Treasury Department Circular No. 307, dated October 9, 1922, any and all subscriptions to 4-^ per cent Treasury bonds of 1947-52, filed with the Treasury Department or with Federal Reserve Banks, as fiscal agents of the United States, upon which bonds have been allotted, and upon which no payment has been made, or upon which either of the two installment payments due pursuant to such circular and allotment has not been paid, are hereby declared to be in default. Any and all payments made to the Treasury Department or to a Federal Reserve Bank upon any^such subscription are hereby declared to be forfeited to the United States, and such subscriptions and all right and interest in the bonds allotted thereon are hereby declared to be forfeited because of the failure to make payments when and as required by said circular. Installment payments hereby forfeited shall be credited to the general account of the Treasurer of the United States (if not already credited) as '^Forfeited installment payments, 4^ per cent Treasury bonds of 1947-52/^ and shall be covered into the Treasury to the credit of ^^Miscellaneous Receipts.'^ Federal Reserve Banks will attach to every transcript showing such credits a schedule giving with respect to each such subscription the name of the subscriber, the amount of bonds allotted, and the amount of the payment or iayments received against the subscription and therewith credited, f such installment payments have already been credited to the general account of the Treasurer of the United States, Federal Reserve Banks will forthwith send to the Treasurer a like schedule to accompany the transcript on which such credits appeared, identifying such transcript by date. Upon receipt of all such forfeited installment payments against any such subscription, the allotment will be reduced accordingly by the face amount of the forfeited subscription. The Treasury Department or Federal Reserve Bank, as the case may be, with which a subscription has been filed, upon which bonds have been allotted, and upon which no payment has been made, or upon which any installment payment is forfeited pursuant hereto, will advise the subscriber of the forfeiture by registered mail at the last known address of such subscriber. f A. W. MELLON, Secretary of the Treasury. 62166—FI 1923 17 236 EEPORT ON T H E FINANCES. EXHIBIT 32. [Second Supplement to Department Circular No. 225, Public Debt.l R E C E I P T O F L I B E R T Y "BONDS, T R E A S U R Y B O N D S A N D T R E A S U R Y NOTES FOR ESTATE OR INHERITANCE TAXES. TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, Washington, July 31, 1923. 1. The provisions of Department Circular No. 225, dated January 31, 1921, as supplemented June 30, 1922, prescribing regulations overning the receipt of bonds and notes of the United States for ederal estate or inheritance taxes are hereby extended and made applicable to Treasury bonds of the United States now or hereafter issued under authority of the Act of Congress approved September 24, 1917, as amended, bearing interest at a higher rate than 4 per centum per annum, and any such Treasury bonds 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 bonds and notes bearing interest at a higher rate than 4 per centum per annum. 2. The bonds and notes at this date outstanding, bearing interest at a higher rate than 4 per centum per annum, which come within the provisions of Department Circular No. 225, dated January 31, 1921, as thus supplemented, are: ' f Description. Date of issue. Short title. (a) First Liberty Loan Converted 4^ per cent bonds of 1932-47. (6) First Liberty Loan Second Converted 41- per cent bonds of 1932-47. (c) Second Liberty Loan Converted 4J per cent bonds of 1927-42. (d) Third Liberty Loan 4^ per cent bonds of 1928.:.... .. (e) Fourth Liberty Loan 4J per cent bonds of 1933-38. (/) 4J per ceiit Treasury bonds of 1947-52 May 9, 1918 First 4J's. October 24, 1918. First second 4|'s. (g) 5f per cent notes, payable June 15, 1924 (h) 5^ per cent notes, payable September 15, 1924. ( 0 4| per cent notes, payable March 15, 1925 (?) 4f per cent notes, payable March 15, 1926 (fc) 4 | per cent notes, payable December 15, 1925.. (Z) 4 | per cent notes, payable September 15, 1926. (m) 4^ per cent notes , payable June 15, 1925 (n) 4-.V per cent notes, payable December 15, 1927. (o) 4-1 per cent notes,'payable March 15, 1927 June 15, 1921 September 15, 1921. February 1, 1922... March 15, 1922 June 15, 1922 August 1, 1922 December 15, 1922.. January 15, 1923 May 15, 1923 May 9, 1918 Second 4i's. do October 24, 1918. October 16, 1922. Third 4'Fs. Fourth 4|'s. Treasury bonds of 1947-52. Series A-1924. Series B-1924. Series A-1925. Series A-1926. Series B-1925. Series B-1926. . Series C-1925. Series A-1927. Series B-1927. 3. For the calculation of accrued interest on the current coupons of bonds and notes tendered in pa5^ment of estate or inheritance taxes under this circular, the method outlined in Exhibit B to Department Circular No. 225, dated January 31, 1921, should be followed. Interest tables at the various rates borne by the various issues, or for other or future issues, may be obtained from the Treasury Department Division of Loans and Currency, Washington, upon request. S. P. GILBERT, Jr., Acting Secretary of the Treasury. SECRETARY OF T H E TREASURY. EXHIBIT 237 33. [Department Circular No. 314. Loans and Currency.] UNITED S T A T E S OF AMERICA—TREASURY CERTIFICATES OF INDEBTEDNESS. DATED AND BEARING INTEREST FROM DECEMBER 15, 1922, SERIES T M2-1923, 3^ P E R CENT, DUE MARCH 15, 1923, SERIES T D-19213, 4 P E R CENT, DUE DECEMBER 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, Treasur}^ certificates of indebtedness, in two series, both dated and bearing interest from December 15, 1922, the certificates of Series T M2-1923 being payable.on March 15, 1923, with interest at the rate of three and one-half per cent per annum, on a quarterly basis, and the certificates of Series T D-1923 being, payable on December 15, 1923, with interest at the rate of four 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 M2-1923 will have one interest coupon attached, pa3^able March 15, 1923, and the certificates of Series T D-1923 two interest coupons attached, payable June 15 and December 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 (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 (6) above. The certificates of ^these series will be accepted at par, with an adjustment of accrued interest, during such time and under such rules and regulations as shall be prescribed or approved by the Secretary of the Treasury, in payment of income and profits taxes payable at the maturity of the certificates. The certificates of these 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 certificates of either or both series applied for and to close the subscriptions as to either or both series at any time without notice. The Secretary of the Treasury also reserves the right to make allotment in full upon applications for smaller amounts, and to make reduced allotments upon, or to reject, applications for larger amounts, and to make classified allotments and allotments upon a graduated scale; and his action in these respects will be final. Allotment notices will be sent out promptly upon allotment, and the basis of allotment will be publicly announced. 238 REPORT ON T H E FINANCES. Payment at par and accrued interest for certificates allotted must be made-on or before December 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 Reserve Bank of its district. Treasury certificates of indebtedness of Series T D and TD2-1922, both maturing December 15, 1922, and 4 | per -cent Victory notes bearing the distinguishing letters A, B, C, D, E, or F prefixed to their serial numbers, called for redemption on December 15, 1922, will be accepted at par, with an adjustment of accrued interest, in payment for any certificates of the Series T M2-1923 or T D-1923 now offered which shall be subscribed for and allotted. Victory notes in coupon form must have May 20, 1923, coupons attached, and if in registered form must be duly assigned to the Secretary of the Treasury for redemption, in accordance with the general regulations of the Treasury Department governing assignments. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscriptions and to make allotments 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, December 7, 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 issues after the subscriptions close, or certificates of any outstanding issue, you should make application to your own bank, or if it can not obtain them for you, to the Federal Reserve Bank of your district. EXHIBIT 84. [Department Circular No. 321. Loans and Currency.] UNITED STATES OF AMERICA—TREASURY CERTIFICATES OF INDEBTEDNESS. DATED AND BEARING INTEREST FROM MARCH 15, 1923, SERIES TS2-1923, 4 i P E R CENT, DUE SEPTEMBER 15, 1923, SERIES TM-1924, 4^ P E R CENT, DUE MARCH 15, 1924. 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 March 15, 1923, the certificates of Series TS2-1923 being payable on September 15, 1923, with interest at the rate of four and one-quarter per cent per annum on a semiannual basis, and the certificates of Series TM-1924 being payable on March 15, 1924, 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. SECRETARY OF THE TREASURY. 239 Bearer certificates will be issued in denominations of $500, $1,000, $5,000, $10,000,. and $100,000. The certificates of Series TS2-1923 will have one interest coupon attached, payable September 15, 1923, and the certificates of Series TM-1924 two interest coupons attached, payable September 15, 1923, and March 15, 1924. 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 tirae and under such rules and regulations as shall be prescribed or approved by the Secretary of the Treasurv, in payment of income and profits taxes payable at the maturity of the certificates. The certificates of these 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 certificates of either or both series applied for and to close the subscriptions as to either or both series at any time without notice. The Secretary of the Treasury also reserves the right to make allotment in full upon applications for smaller amounts, and to make reduced allotments upon or to reject, applications for larger amounts, and to make classified allotments and allotments upon a graduated scale; and his action in these respects will be final. Allotment notices will be sent out promptly upon allotment, and the basis of allotment will be publicly announced. Payment at par and accrued interest for certificates allotted must be made on or before March 15, 1923, 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 TM and TM2-1923, both maturing March 15, 1923, and uncalled Victory notes of the 4 | per cent series, bearing the distinguishing letters G, H, I, J, K, or L prefixed to their serial numbers, will be accepted at par, with an adjustment of accrued interest, as of March 15, 1923, in payment for any certificates of the Series TS2-1923 or TM-1924 now offered which shall be subscribed for and allotted. Victor}^ notes in coupon form must have May 20, 1923, 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. 240 REPORT ON THE FINANCES. 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 WSECRETARY, March 8, 1923. 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 uncalled 4 | per cent Victory notes may be tendered in payment. If you desire to purchase certificates of the above issues after the subscriptions close, or certificates of any outstanding issue, you should apply to your own bank, or, if it can not obtain them for you, to the Federal Reserve Bank of your district, which will then endeavor to fill your order in the market. E X H I B I T 35. [Department Circular No. 325. Loans and Currency.] U N I T E D S T A T E S O F A M E R I C A — F O U R P E R CENT TREASURY CER- TIFICATES OF INDEBTEDNESS. SERIES TD2-1923, DATED AND BEARING INTEREST FROM JUNE 16, 1923, DUE DECEMBER 15, 1923. The Secretary of the Treasury, under the authority of the act approved September 24, 1917, as amended, oft'ers for subscription, at par and accrued interest, through the Federal Reserve Banks, Treasury certificates of indebtedness of Series TD2-1923, dated and bearing interest. from June 15, 1923, payable December 15, 1923, with interest at the rate of four per cent per annum on a semiannual basis. Applications will be received at the Federal Reserve Banks. Bearer certificates will be issued in denominations of $500, $1,000, $5,000, $10,000, and $100,000. The certificates will have one interest coupon attached, payable December 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 (&) 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 (5) above. The certificates of this series will be accepted at par, with an adjustment of accrued interest, during such time and- imder 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 SECRETARY OF THE TREASURY. 241 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. The Secretary of the Treasury also reserves the right to make allotment in full upon applications for smaller amounts, and to make reduced allotments upon, or to reject, applications for larger amounts, and to make classified allotments and allotments upon a graduated scale; and his action in these respects will be final. Allotment notices will be sent out promptly upon allotment, and the basis of allotment will be publicly announced. Payment at par and accrued interest for certificates allotted must be made on or before June 15, 1923, 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 TJ-1923, maturing June 15, 1923, will be accepted at par, with an adjustment of accrued interest, in payment for any certificates of the Series TD2-1923 now off'ered 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 of the Treasury. TREASURY DEPARTMENT, O F F I C E OF THE SECRETARY, June 11, 1923. 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 apply to your own bank, or, if it can not obtain them for you, to the Federal Reserve Bank of your district, which will then endeavor to fill your order in the market. EXHIBIT 36. [Department Circular No. 328. Loans and Currency.] U N I T E D STATES OF AMERICA—FOUR AND ONE-QUARTER P E R CENT TREASURY CERTIFICATES OF INDEBTEDNESS. SERIES TM2-1924; DATED AND BEARING INTEREST FROM SEPTEMBER 15, 1923, DUE MARCH 16, 1924. The Secretary of the Treasury, under the authority of the act approved Septemher 24, 1917, as amended, offers for subscription, at par and accrued interest, through the Federal Reserve Banks., Treasurji^ certificates of indebtedness of Series TM2-1924, dated and bearing interest from September 15, 1923, payable March 15, 1924, with interest at the rate of four and one-quarter per cent per annum on a semiannual basis. 242 REPORT ONT 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 March 15, 1924. The certificates of said series shall be exempt, both as to principal and interest, from all taxation now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority, except {a) estate or inheritance taxes, and (6) graduated additional income taxes, commonly known as surtaxes, and excess-profits and war-profits taxes, now or hereafter imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corporations. The interest on an amount of bonds and certificates authorized by said act approved September 24, 1917, and amendments thereto, the principal of which does not exceed in the aggregate $5,000, owned by any individual, partnership, association, or corporation, shall be exempt from the taxes provided for in clause (&) above. The certificates of this series will be accepted at par, with an adjustment of accrued interest, during such time and under such rules and regulations as shall be prescribed or approved by the Secretary of the Treasury, in payment of income and profits taxes ay able at the maturity of the certificates. The certificates do not ear the circulation privilege. The right is reserved to reject any. subscription and to allot less than the amount of certificates applied for and to close the subscriptions at any time without notice. The Secretary of the Treasury also reserves the right to make allotment in full upon applications for smaller amounts, and to make reduced allotments upon, or to reject, applications for larger amounts, and to make classified allotments and allotments upon a graduated scale; and his action in these respects will be final. Allotment notices will be sent out promptly upon allotment, and the basis of allotment will be publicly announced. Payment at par and accrued interest for certificates allotted must be made on or before September 15, 1923, 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 TS and TS2-1923, both maturing September 15, 1923, will be accepted at par, with an adjustment of accrued interest, in payment for any certificates of the Series TM2-1924 now offered which shall be subscribed for and allotted. As fiscal agents of the United States, Federal Reserve Banks are authorized and requested to receive subscriptions and to make 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. E A. W. MELLON, Secretary of the Treasury TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, September 10, 1923. SECBETAEY Or THE TREASUBY. 243 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 t h e terms of subscription and allotment as stated above. If you desire to purchase certificates of t h e above issue after t h e subscriptions close, or certificates of any outstanding issue, you should apply to your own bank, or, if it can not obtain them for you, to the Federal Reserve Bank of your district, which will then endeavor to fill your order in t h e market. EXHIBIT 37. P A Y M E N T S T O C A R R I E R S F R O M N O V E M B E R 16, 1 9 2 2 , TO N O V E M B E R 16, 1 9 2 3 , I N C L U S I V E , P R O V I D E D F O R I N SECTION 2 0 4 OF T H E T R A N S P O R T A T I O N ACT O F 1 9 2 0 , A S A M E N D E D , F O R R E I M B U R 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 R A L - C O N T R O L . Carrier. Partial payments. Final payments. Deductions.! Total certified. $9,136, S9,136.52 Alabama Central Ry 3,265. 3,265.11 Alcolu R. R. Co 18,265. 18,265.21 Bauxite & Northern Ry. Co $628.90 7,499. 7,499.00 Bay Terminal Railroad Co 5,648.94 Beaver Valley Railroad Co 5,648, ""64.'40 15,234.59 Bldomsburg; & Sullivan R. R. Co 15,234, 1,558.02 Bonlee & Western Ry. Co 1,558. 29,3.12.36 Boyne City, Gaylord & Alpena R. R. Co , 29,312. 6,702.87 CampbelPs Creek R. R. Co 6,702. 9.110.56 9,110.56 Carrollton & WorthviUe R. R. Co 9,110. 1;578.08 12,644.30 Central AVest Virginia & Southern R. R. Co.... 12,644 25,228.35 Cimarron & Northwestern Ry. Co 25,228. 8.024.90 Colfax Northern Ry. Co 8,024.120.55 2,236.64 Colorado-Kansas Ry. Co 2.236. $30,000.00 10.36 48,733.59 Colorado & Southeastern R. R. Co 18,733. 11.18 7.718.64 Combs, Cass & Eastern R. R. Co 7,718. 8.508.01 IDardanelle & Russellville R. R. Co 8,508. 175,220.95 Duluth & Northeastern R. R. Co-. 175,220. 14,220.86 El Dorado & Wesson Ry. Co 14,220. 16,635.44 Erie & Michigan Ry. & Navigation Co 16,635. 5,304.02 Federal Valley R. R. Co 5,304. Flint Rivei- & Northeastern R. R. Co 4,225. 4,225.33 Fordyce & Princeton R. R. Co 33,120. 33,120.85 Franlsfort & Cincinnati Ry. Co , 7; 551. 7,551.16 Gainesville & Northwestern R. R. Co . 76. 76.27 Garden City Western Ry. Co 5.834 .5,834.11 Great Western Ry. Co 65,152 65,152.98 Gulf Ports Terminal Ry. Co 11,017 11,017.75 Hardwiclv & Woodbury R. R. Co 425 425.02 HillsborO & North Eastern Ry. Co , 7,218 7,218.93 708.07 Indiana Northern Ry. Co , 14.688 14,688.66 30.60 Johnstown & Stony Creek R. R 8,148 8,148.41 489.52 Kane & Elk R. R.'Co 14,345 14,345-. 55 527,483.88 Kansas City Northwestern R. R. Co., receiver. 598,461 59,8.461.98 347.08 Kansas & Sidell R. R. Co , 12,460 12,460.08 Lake Erie, Franklin & Clarion R. R. Co 1,9.85 1,985.85 Lake Tahoe Ry. & Transportation Co , 24,081. 24,081.13 5,004.23 Live Oak, Perry & Gulf R. R. Co 52,468. 5.2,468.75 Lorama R. R. Co 1,542. 1,542.20 Loraneer, Louisiana & Northeastern R. R. Co.. 7,741. 7,741,18 Louisiana & Pacific Ry. Co 30,747. 30,747.95 64.80 Manufacturers' Junction. Ry. Co 43,253 43,2.53.50 7,506.50 24,243 24,243.54 Marion & Rye Vallej'^ Ry. Co , 19,354 19,354.41 Massena Terminal R. R. Co 175,910. 175,910.23 Mississippi River & Bonne Terre Ry 9,224. 9,224.09 Moshassuck Valley R. R. Co 38,262. 38,262.75 Mississippi Eastern Ry. Co 11,700. 11,700.43 Mount .jewett, Kinzua & Riterville R. R. Co... 2,752.21 21,8.57. 21,857.56 Muncie & Western R. R. Co 39.044. 39,044.13 New York Dock Railway 46.234 46,234.64 49.01 New Orleans, Natalbany & Natchez Ry. Co.... 10,625. 4,209.56 10,625.89 Ocilla Southern R. R. Co., receivers 4,772.47 4,772. 4,772.47 • Orangeburg Ry. Co., receiver 30,458. 30,458.56 Ouachita & Northwestern R. R. Co 21,303. 21,303.41 Ouachita Valley Ry. Co 54,379. 54,379.90 Pajaro Valley ConsoUdated R. R. Co 2,204. 23 2,204. Penn Yan & Lake Shore R. R. Co. (receiver).. Pittsburgh, Shawmut & Northern R. R. Co., 189,660.52 receiver 189,560.52 1 Amount due from the carrier to the President (as operator of the transportation systems under Federal control) on account of traflic balances or other indebtedness. 244 REPORT ON THE FINANCES. Payments to carriers from November 16, 1922, to November 15, 1923, inclusive, provided for in section 204 of the transportation act of 1920, as amended, for reimbursement of deficits on account of Federal control—Continued. Carrier. Partial payments. .S4,224.84 17,286.62 7,738.36 18,603.79 25,153.40 18,112.75 74,079.94 38,774.76 3,793.14 30,459.61 48,632.15 16.100.79 12,637.96 24,266.23 10,056.00 3,335.21 253,440.63 70,998.49 3,564.64 23,290.31 121,916.00 6,186.84 47,806.80 11,760.21 Rome & Northern R. R. Co Roscoe, Snyder & Pacific Ry Rowlesburg & Southern R. R. Co Reynoldsville & Falls Creek R. R Santa Maria Valley R. R. Co. , Savannah & Statesboro Ry. Co , Sierra Ry. Co. of California SUgo & Eastern R. R. Co Smoky Mountain Ry. Co South Brooklyn Ry. Co Sterling Mountain Ry. Co Stewartstown R. R. Co Tampa & Jacksonville Ry. Co Tavares & Gulf R. R.Co Thornton & Alexandria Ry. Co , Toledo, Angola & Western Ry. Co Tonopah & Goldfield R. R. Co Tonopah & Tidewater R. R. Co Traverse City, Leelanau & Manistique Ry. Co.. Uintah Ry. Co Verde Tunnel & Smelter R. R. Co Virginia Southern R. R. Co Washington, Idaho & Montana Ry. Co Washington Run R. R. Co Waukegan, Rockford & Elgin Traction Co., receiver White Sulphur & Himtersville R. R. Co , Winfield R. R. Co. Wiscasset, Water\dlle & Farmington R. R. Co. Wisconsin & Northern R. R. Co Wisconsin Northwestern Ry. Co Yosemite Valley R. R. Co , Zwolle & Eastern Ry. Co . Total Less refund of overpayments: Alabama Northern Ry. Co $169.24 Angehna & Neches River R. R. Co 4,908.92 Franklin & PittsylvaniaR. R. Co. 2,009.57 IMidland Ry. (receiver) (part) . . . . 4,724.00 Pickens R. R. Co 166.38 Randolph & Cumberland Ry. Co. (receiver) (part) 2,788.09 Tonopah & Tidewater R. R. Co.. 10.00 Wisconsin & Michigan R. R. Co.. 9,127.73 246.47 770.51 16,432.44 14,483.60 2,224.05 10,847.39 126,507.71 25,629.39 $30,000.00 3,132,254.11 Deductions. $3,600.00 727.76 680.12 3,335.21 68.34 9,600.50 586,317.63 23,893.93 Payments from Nov. 16, 1922, to Nov. 15, 1923, 30,000.00 inclusive 2,177,651.41 Payments to Nov. 15,1922, inclusive Total payments to Nov. 15,1923.. Final payments. 2,207,661.41 Total certified. $4,224.84 17,286.62 7,738.36 18,603.79 25,153.40 18.112.75 74,079.94 38.774.76 3,793.14 30,459.61 48,6.32.15 16,100.79 12,637.96 24,266.23 10,056.00 3,335.21 263,440.63 70,998.49 3,564.64 23,290.31 121,916.00 6,186.84 47,806.80 11,760. 21 246.47 770.51 16,432.44 14,483.60 2,224.05 10,847.39 126,507.71 . 25,629.39 3,102,254.11 23,893.93 3,108,360.18 2,961,899.04 585,317.63 972,595.94 3,138,360.18 6,139,550.46 6,070,259.22 1,567,913.57 8,277,910.63 245 SECRETAKY OF TLIE TREASURY. EXHIBIT 38. 1>AYMENTS TO CARRIERS FROM NOVEMBER 16, 1922, TO NOVEMBER 15, 1923, INCLUSIVE, UNDER THE GUARANTY PROVIDED FOR IN SECTION 209 OF THE TRANSPORTATION ACT OF 192,0, AS AMENDED, AND PAYMENTS BY CARRIERS TO THE UNITED STATES UNDER THE SAME SECTION. PAYMENTS TO CARRIERS. Carrier. Advances. Partial. Final. 1 Total. $81,731.17 $61, 731.17 Abilene & Southern Ry. Co .5,750.78 5,750. 78 Adirondack & St. Lawrence R. R. Co.. 3,196.65 3,196.65 .Alabama Northern Ry. Co 102,680.44 102,680.44 Alton Southern R. R.'Co 453.80 453.80 Andalusia, .Florida & GulfRy. C o . . . . . . 5, 587.33 5,587.33 Angelina & Neches River R. R. Co 73.499.24 73,499.24 Arizona Eastern R. R. Co 1,224.19 1, 224.19 Asheville & Craggy Mountain Ry. Co.. 3,231,967.40 3,231,967.40 Atlantic Coast Line Ry. Co 1,904.43 .1,904.43 Atlantic Northern Ry. Co 4,338.51 4,338.51 Atlantic & Western R. R. Co 64,751.33 64,751.33 Atlantic & Yadkin Ry Co 5,672,416.08 5,672,416.08 Baltimore & Ohio R. R. Co Baltimore & Ohio Cliicago Terminol 436, 829.36 436,829. 36 R. R. Co 6,430.32 6,430.32 Bauxite & Northern Ry. Co 27,991.20 27,991.20 Blue Ridge Ry. Co 720,615.40 620,615.46 Boston & Maine Railroad $100,000.00 21,371.17 21,371.17 Boyne City, Gaylord & Alpena R. R.Co. 7,553.99 7,553.99 Carolina & Northeastern R. R. Co 31,313.10 31,313.10 Carolina & Northwestern Ry. Co 1,051.55 1,051.55 Carrollton & Worthville R. R. Co 298,924.32 298,924.32 Central of Georgia Ry. Co 19,204.09 19,204.09 Central New England Ry. Co Central New York Southern R. R. 15.277.25 15,277.25 Corporation I 219, 878.78 219, 878.78 Charleston & Western Carohna Ry. Co. 8,597.55 1,597.55 7,000.00 Charlotte, Monroe & Columbia R. R. Co. 1,078,841.30 1,07.8,841.30 Chesapeake & OhioRy. Co 1 22,194.38 "'is," 666.'00' 4,194.38 •Chesterfield & Lancaster R. R. Co j 4,638,463.98 4,638,463.98 Chicago, Burlington & Quincy R. R. Co. 125,000.00 '125,'666." 66' Chicago Great Western R. R. Co 17, 840.50 17, 840.50 Chicago, K;a.lamazoo & Saginaw Ry. Co.. 1,110.23 1,110.23 Chicago, Palatine & Vv^auconda R. R. Co. 273,076.70 273,076. 76 Chicago, Rock Island & GulfRy. Co... 725, 578.49 725, 578.49 Chicago, Rock Island & Pacific Ry.Co.. Chicago, Terre Haute & Southeastern 83,092.00 83,092.00 Ry.Co 93,033.06 93,033.06 Chicago & Western Indiana R. R. Co. Cincinnati, Burnside & Cumberland 1,956.53 1,956.53 River Ry. Co Cincinnati, Indianapolis & Western R. 282,081.00 282,081.00 R. Co 25,100.41 25,100.41 Cincinnati Northern R. R. Co Cleveland, Cincinnati, Chicago & St. 2,964,911.86 2,964,911.86 Louis Ry. Co 17,024.11 17, 024.11 Coal Belt Electric Ry. Co 3,598.56 3, 598.56 Colorado-Kansas Ry. Co 387,231.02 387,231.02 Columbus ^ Greene ville R. R. Co 3,811.18 3,811.18 Coudersnort & Port Alleganv R. R. Co.. 15, 827.79 15, 827.79 Cumberland R. R. Co 27, 449.07 27,449.07 Dayton & Union R. R. Co 72,392.58 72,392.58 Delta Southern Ry Detroit, Grand Haven & Milwaukee 525,433.98 525,433.98 R. R. Co. •. . 11,890.37 11,890.37 Detroit & Huron Ry. Co ^ 89,171.38 89,171.38 Detroit Terminal R. R. Co...' 61,296.87 61,296. 87 Duluth & Northeastern R. R. Co 21,329.81 17,000.00 4,329.84 East & West Coast Ry 37,015.17 24, 000. 00 13,015.17 Florida Central & Gulf Ry 18,431.54 18, 431. 54 Fort Worth Belt Ry. Co Fourche River Valley & Indian Terri2, 913.43 2,913. 43 tory Ry. Co 151.56 151.56 Frankfort & Cincinnati Ry. Co 2,672.36 2,672.36 Franklin & Pittsylvania R. R. Co 3,410.56 3, 410.56 Fulton Chain Ry. Co 1,755.31 1, 755. 31 Gainesville & Northwestern R. R. Co... 1 Amounts in this column represent balances du.e and paid after taldng into account advances and partial payments previously made. 246 REPORT ON T H E FINANCES. Payments to carriers from November 16, 1922, to November 15, 1923, inclusive, under the guaranty provided for in section 209 of the transportation act of 1920, as amended, and payments by cancers to the United States under the same section—Continued. PAYMENTS TO CARRIERS—Continued. Carrier. Galveston, Harrisburg & San Antonio Ry.Co Glenraora & Western Ry. Co Grand Trunk Ry. Co. of Canada, account of Atlantic & St. Lawrence R. R. Co., Chicago, Detroit & Canada Grand Trunk Junction R. R. Co., Cincinnati, Saginaw & Mackinaw R. R. Co., Lewiston & Auburn R. R. Co.; Michigan Air Line Ry Grand Trunk Western Ry. Co Green Bay & Western R. R. Co Gulf, Mobile & Northern R. R. Co Gulf Ports Terminal Rv. Co Gulf & Shin Island R. !R. Co Hamilton Belt Ry. Co Harriman & Northeastern R. R. Co Hartwell Ry. Co Hill City Ry. Co Houston & Brazos Valley Ry. Co., receiver Houston East & West Texas Ry. Co... Houston & Shreveport R. R. Co Houston & Texas Central R. R. Co Iberia & Vermilion R. R. Co Illinois Northern Ry Indiana Harbor Belt R. R. Co Kanawha & Michigan Ry. Co Kanawha & West Virginia R. R. Co.. . Kane & Elk Railroad Co Kentwood, Greensburg & Southwestern R. R. Co .' Kinston Carohna R. R. Co Knoxville, Sevierville & Eastern Ry. Co., receiver "... Lake Charles & Northern R. R. Co Lake Erie & Eastern R. R. Co Lawndale Ry. & Industrial Co Lehigh & New England R. R. Co Little Kanawha R. R, Co Live Oak, Perry & Gulf R. R. Co Long Island Railroad Co Lorain & West Virginia Ry. Co Louisiana & Pacific Ry. Co Louisville, Henderson & St. Louis R. R.Co LouisAille & Na.shville R. R. Co Louisville & Wadley R. R. Co Macon, Dublin & Savannah R. R. Co.. Maine Central R. R. Co Maryland & Pennsylvania R. R. Co Maxton, Alma & Southbound R. R. Co. Meridian & Memphis Ry. Co Michigan Central Railroad Co Midland Ry. (receiver) Millers Creek R. R. Co Mineral Point & Northern Ry. Co Minneapolis Western Ry. Co Mississippi River & Bonne Terre Ry.Co. Monson Railroad Co Montana, Wvoming & Southern R. R. Co \ Montpelier & Wells River R. R Morgantown Si King wood R. R. C o . . . . Moshassuck Valley R. R. Co Mt. Jewett, Kinzua & Riterville R. R. Co Muncie Belt Ry. Co Nacogdoches & Southeastern R. R. Co, Nashville, Chattanooga & St. Louis Ry. Natchez, Columbia & Mobile R. R. Co. Natchez h Southern Ry. Co Nevada-California-Oregon Rv New Orleans, Natalbany & Natchez Rj^ Co New Orleans, Texas & Mexico Ry. Co.. New York Central R. R. Co Advances. Partial. Final. $350,148.14 391.84 $350,148.14 391.84 741,392.09 1,171,829.18 141, 811. 30 50,259. 68 4,978.01 160,969. 75 4,051.14 10,547. 80 6, 739.89 2,942.98 741,392.09 1,171,829.18 141,811.30 50,2,59.68 4,978. 01 160,969. 75 4,051.14 10, 547.80 6,739.89 2,942.98 26,158.91 97,652. 76 2,8,023.39 3, 572.11 12, 430.47 55, 307.96 897,228.54 200,412.87 56,183.21 1,532. 22 $40,000.00 Total. 26,158.91 97,652.76 28, 023.39 3, 572.11 12, 430.47 55,307.96 897,228.54 200,412.87 56,183.21 1,532. 22 24, 067.38 2, 279.32 24, 067.38 2, 279.32 22, 280.07 23, 477.00 135, 4:04.05 3, 893.57 179, 461.88 9, 472. 26 5, 712.08 1,178,990.54 36,237.40 44,511.78 22, 280.07 23, 477.00 135, 404.05 3,893.57 179,461.88 9, 472,25 5,712.08 1,178,990.54 36,237.40 44,511.78 51, 274. 77 2,181,061.69 919.78 16,337.16 272, 823.10 7,063.16 4,406. 04 15,553.49 1,139,827.80 4,724.00 10, 046.73 1, 674.43 51, 274. 77 2,181,061.69 919.78 56,337.16 272, .S23.10 7,063.16 4,406.04 15, 553.49 1,139,827.80 4,724. 00 10,046.73 1,674.43 20,096.67 20,096.67 74,629.28 268, 58 74,629.28 268.58 14,090.19 24, 537. 43 76,293.17 19,206.78 14,090.19 24,637.43 76,293.17 19;206.78 9,220. 83 12,661.47 620. 80 193,961.30 3,722. 91 10,998. 41 20, 719. 09 9,220.83 12,661.47 620.80 193,961.30 3,722.91 10,998. 41 20,719.09 16,805.48 317,018.75 5,282,637.82 16,805.46 317,018.75 5,282,637.82 247 SECRETARY OE THE TREASURY. Payments to carriers from November 16, 1922, to November 15,1923, inclusive, under the guaranty providedfor in section 209 of the transportation act of 1920, as amended, and payments by carriers to the United States under the same section—Continued. P A Y M E N T S TO Carrier N e w Y o r k C o n n e c t i n g R . R . Co N e w Y o r k Dock R y , Co N e w Y o r k , N e w H a v e n & Hartford R. R . C o N e w Y o r k & P e n n s y l v a n i a I l y . Co N o r t h a m p t o n & B a t h R , R . Co N o r t h w e s t e r n R . R . Co. of S o u t h Carolina Ocilla S o u t h e r n R . R . Co P e n n Y a n & L a k e S h o r e R y . (receiver) P i c k e n s R . R . Co P i t t s b u r g h & L a k e Erie R . R . C o Pittsburgh & Shawmut R . R . C o P o n t i a c , Oxford & N o r t h e r n R . R . C o . . Quincy, O m a h a & K a n s a s City R . R . Co R a l e i g h & C h a r l e s t o n R . R . Co R a n d o l p h & C u m b e r l a n d R y . Co.. (receiver) R a q u e t t e L a k e R y . Co R a y & Gila Valley R . R . Co R i o G r a n d e S o u t h e r n R . R . Co R u t l a n d Railroad Co S a n A n t o n i o , U v a l d e & Gulf R . R . Co. Savannah & Statesboro R y . C o Sharpesville R . R . Co., receiver S o u t h S a n Francisco B e l t R y S o u t h e r n Pacific C o m p a n y St. .Joseph B e l t R y . Co StatenIsland Rapid Transit Ry. Co.... S t e w a r t s t o w n R . R . Co SuUivan C o u n t y R . R., T h e S y l v a n i a C e n t r a l R v . Co T a l l u l a h F a l l s R y . Co T a m p a & Gulf Coast R . R . Co T a m p a N o r t h e r n R . R . Co T e n n e s s e e C e n t r a l R . R . Co T e x a s & N e w Orleans R . R . Co T e x a s Short L i n e R y . Co Toledo. Angola & W e s t e r n R y . Co Toledo'& Ohio Central R y . Co Toledo, P e o r i a & W e s t e r n R y . Co Toledo, Saginaw & Muskegon R y . C o . . T u g R i v e r & K e n t u c k y R . R . Co U m o n F r e i g h t R . R . Co U n i o n Pacific Railroad Co., account of Los Angeles & Salt L a k e R, R . Co., Oregon Short Line R . R . Co., OregonW a s h i n g t o n & N a v i g a t i o n Co U n i o n R y . Co U n i o n Stock Y a r d s Co. of O m a h a , L t d . V e r m o n t Valley R a i l r o a d Virginia Blue Ridge R y Virginia S o u t h e r n R . R . Co W a b a s h , Chester & W e s t e r n R . R . C o . . W a d l e y S o u t h e r n R y . Co Washington & Vandemere R. R. C o — W a y c r o s s & S o u t h e r n R . R . Co W a u p a c a - G r e e n B a y R y ^ Receiver W e s t Virginia N o r t h e r n R . R . Co W h e e l i n g & L a k e E r i e R y . Co,, T h e . . . W h i t e Sulphiur & H u n t e r s ville R . R . Co. Winfield R . R . C o : Winston-Salem Southbound Ry. C o — Wisconsin &. Michigan R . R . Co Wisconsin & N o r t h e r n R . R , C o . . . . . . . W o o d R i v e r B r a n c h R . R . Co W o o d w o r t h & Louisiana R v . Co W r i g h t s ville & Tennille R . !R. Co Y a d k i n R . R . Co. Y o r k H a r b o r & Beach R . R . C o Zanesville & W e s t e r n R y . Co CARRIERS—Continued. Advances. Partial. $18,000.00 .97,500.00 25,000.00 40,000.00 Final. Total. $757,677.95 36,343.49 $757,677.95 36,343. 49 2,891,206,26 12,679.24 36,899.06 2,891,206.26 12,579. 24 36,899.06 15,186.15 13,684.00 1,631.66 3,239.47 1,275,409.14 71,739.32 63,700. 93 15,186.15 13,684.00 1,631.66 3,239.47 1,275,409.14 71,739.32 63,700.93 252,363.98 4,656.71 252,363.98 22,656.71 ' 2,788.09 14,715.60 111,067.30 6,536.24 20,646.31 82,718.43 3,424.66 20,374.23 8,286.69 4,235,301.01 8,026,97 409,823.33 2,163.06 17,317.82 2,299.17 40,979.24 29,453.79 24,819.02 66,499.46 165,714.97 3,275.67 2,507. 34 614,686, 90 39,104. 25 105,278,57 4,754. 50 18,504, 04 • 2,788.09 14,715.60 111,057.30 6,536.24 20,646.31 82,718. 43 3,424.66 20,374.23 8,286.69 4,235,301.01 8,026.97 409,823.33 2,163.06 17,317.82 2,299.17 40,979.24 126,9.53.79 49,819.02 105,499.46 165,714.97 3,276.67 2,507.34 614,686.90 39,104. 25 105,278.57 4,754.50 18,504. 04 374,293.41 256,545, 06 4,780. 81 11,959.49 780.11 1,989.94 21,759.36 7,767.16 3,628.03 4,677.72 2,940.85 5,244.66 871,068.86 2,451.02 10,011.18 40,768. .36 12,895.61 45,866.67 2,372. 02 2,679.93 26,079.39 11,007.69 1,237.83 48,832.28 374,293.41 255,545.06 4,780.8111,959.49 780.11 1,989.94 21,759.36 7,767.15 • 3,628.03 4,577.72 2,940.85 5,244.66 871,068. 86 2,451.02 16,011.18 40,768.36 12,895.61 45,866.67 2,372.02 2,679.93 26.079.39 11,007. 69 1,237.83 48,832. 28 51,055,090. 58 51,566,590.58 248 REPORT ON THE FINANCES. Payments to carriers from November 16, 1922, to November 15, 1923, inclusive, under the guaranty providedfor in section 209 of the transportation act of 1920, as amended, and payments by carriers to the United States under the same section—Continued. PAYMENTS TO CARRIERS—Continued. Carrier. LessRefund of overpayment bv Birmingham & ISforthwestern Ry. Co.. Marion & Rye Valley R.R.Co Morgan's Louisiana & Texas R. R. and Steamship Co Mount Hope & Mneral R.R.Co Northern Alabama Ry. Co Advances. Partial. Final. Total. $1,361.43 1,166.68 73,922.62 324.19 $87,063.31 $87,063.31 $511,500.00 168,930,412.14 50,968,027.27 17,224,517.46 51,479, 627.'27 450,090,803.69' 169,441,912.14 68,192,544.72 501,570,330.86' 10,288.39 Payments to above carriers from Nov. f6, 1922, to Nov. 16, 1923, inclusive . Payments to Nov. 16,1922, inclusive... .$263,935,874.00 Total payments to Nov. 15,1923, inclusive 263,935,874.00 PAYMENTS BY CARRIERS TO THE UNITED STATES. Payments by carriers to the United States from November 16, 1922 to November 15, 1923, under the provisions of section 209(d) of the transportation act, 1920, as amended, on account of excess earnings, during the guaranty period: Carrier. Ahnapee & Western Ry. Co Barre & Chelsea R. R."Co .Carolina Railroad Co 'East Tennessee & Western North Carolina R. R. Co Ironton Railroad Co Kewaunee Green Bay & Western R. R. Co Lake Tahoe Railway & Transportation Co Louisiana Western R. R. Co Massena Terminal R. R. Co South Manchester R. R. Co Total Amount paid^ $2,940.39 25,391.33 910.78 10,473.42 1,932.77 260.50 5,004. 23 168,397. 58 7,399.44 1,079.16 223,789.60 249 SECRETARY OF THE TREASURY. EXHIBIT 39. L O A N S TO C A K R I E R S U N D E R S E C T I O N 2 1 0 O F T H E T K A N S P O R T A T I O N ACT O F 1 9 2 0 , A S A M E N D E D , A N D R E P A Y M E N T S ON S U C H L O A N S F R O M N O V E M B E R 1 6 , 1 9 2 2 , TO N O V E M B E R 1 5 , 1 9 2 3 , I N CLUSIVE, WITH LOANS OUTSTANDING NOVEMBER 15, 1922, AND NOVEMBER 15, 1923. Carrier. Akron, Canton & Youngstown Ry. Co.. Alabama, Tennessee & Northern R. R. Corporation Alabama & Vicksburg Ry. Co Ann Arbor R. R. Co Aransas Harbor Terminal Railway 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 Carolina, Clinchfield & Ohio Ry. Co Central of Georgia 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, IndianapoUs & 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, ChehaUs & Cascade Ry. Co.... Cumberland & Manchester R. R. C o . . . 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. Co.. Flemingsburg & Northern R. R. Co Fort Dodge, Des Moines & Southern R. R.Co Fort Smith & Western R. R. Co., receiver Gainesville & Northwestern R. R. Co.. Georgia & Florida Ry., receivers of Great Northern Ry. Co Greene County R. R. Co Gulf, Mobile <fe Northern R. R. Co Hocking Valley Ry. Co Illinois 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 Kansas City Terminal Ry. Co Lake Erie, Franklin & Clarion R. R. Co. Lon^ Island R. R. Co Louisville & JefEersonviUe Bridge & R.R.Co Maine Central R. R. Co Minneapolis & St. Louis R. R. Co Missouri, Kansas & Texas Ry. Co. of Texas^ receiver Missouri & North Arkansas Ry. C o . . . . Missouri Pacific R. R. Co Loans outstanding Nov. 15, 1922. Loans from Nov. 16,1922 to Nov. 15, 1923. Repayments from Nov. 16, 1922 to Nov. 15, 1923. $212,000.00 475,250.00 1,394,000.00 510,000.00 50,000.00 180,000. 00 3,000,000.00 180,000.00 75, 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, 023.97 785,000.00 2,445,373.00 156,000.00 35,000,000.00 $10,000,000.00 9,862,000.00 7,817,000.00 236,450.00 45,000. 00 375,000. 00 $212,000.00 $27,600.00 80,000.00 100,000.00 16,000.00 1,000,000.00 16,860. 00 447,760.00 1,394,000.00 430,000.00 . 50,000.00 1180,000.00 2,900,000.00 164,000.00 75,000.00 14,706,479.00 1,000,000.00 13,000.00 206,180.00 300,000.00 167,000.00 140,000.00 8,073,023.97 240,000.00 . 785,000.00 .2,205,373.00 10,000,000.00 98,000.00 6.33,500.00 11,574,450.00 400,000. 00 33,000.00 7,250.00 Loans outstanding Nov. 15, 1923. 156,000.00 35,000,000.00 9,862,000.00 7,719,000.00 238,450.00 45,000.00 375,000.00 633,500.00 11,574,460.00 8,000.00 400,000.00 25,000.00 7,250.00 200,000.00 200,000.00 156,000.00 75, 000.00 792, 000.00 1,742,000.00 54, 000. 00 1,433, 500. 00 1,665, 000. 00 3,848, 000. 00 414, 000. 00 156,000.00 75,000.00 792,000.00 1,608,000.00 48,000.00 1,4.33,500.00 1,665,000.00 134,000.00 6,000.00 3,848,000.00 414,000.00 155,440.00 2,500,000.00 580,000.00 22,600. 00 500,000.00 2,500.00 500,000.00 2,600,000.00 580,000.00 20,000.00 162,000.00 2,373,000.00 1,382,000.00 15,000.00 147,000.00 2,373,000.00 1,382,000.00 420,000.00 3,500,000.00 5,629,760.00 30,000.00 390,000.00 3,500,000.00 5,549,760. 00 80,000.00 250 REPORT ON THE FINANCES. Loans to carriers under section 210 of the transportation act of 1920, as amended, and repayments on such loans from November 16, 1922, to November 15, 1923, inclusive, with loans outstanding November 15, 1922, and November 15, 1923—Continued. Carrier. National Railway Service Corporation accountBaltimore & OhioR. R.Co Bangor & Aroostook R. R. Co Chicago, Rock Island & Pacific Ry. Co Mimieapolis & St. Louis R. R. Co.. New Orleans, Texas & Mexico R. R.Co WheeUng & Lake Erie Ry. Co New York Central R. R. Co New York, New Haven & Hartford R. R.Co Norfolk Southern R. R. Co... Peoria & Pekin Union Ry. Co Rutland R. R. Co Salt Lake & Utah R. R. Co Seaboard Adr Line Ry. Co Seaboard-Bay Line Co Shearwood Ry. CO' Tampa Northern R. R. Co Tennessee Central Ry. Co Toledo, St. Louis & Western R. R. Co.. TraiLS-Mississippi Terminal R. R. Co.. Virginia Blue Ridge Ry. Co.. . Virginia Southern R. R. Co Virginian Ry. Co^ The Waterloo, Cedar Falls & Northern Ry. Co Western Maryland Ry. Co WheeUng & Lake Erie Ry. Co Wichita Northwestern Ry. Co Wilmington, Brunswick & Southern R. R Co Total Loans and repayments to Nov. 15,1922, inclusive. Total loans and repayments to Nov. 15,1923, inclusive Loans outstanding Nov. 15, 1922. Loans from Nov. 16, 1922 to Nov. 15, 1923. Repayments from Nov..16, 1922 to Nov. 15, 1923. Loans outstanding Nov. 15, 1923. $4,506,666.67 47,790.00 $346,666.67 3,540.00 $4,160,000.00 44,260.00 1,561,042.04 384,343.92 18,009.22 4,434.05 1,543,032.82 379,909.87 830,206.88 3,288,206.05 22,990,000.00 63,862.08 37,934.92 22,990,000.00 766,344.80 3,250,271.13 100,000.00 46,600.00 23,930,000.00 1,608,300.00 1,797,000.00 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. 00 646,000.00 1,000,000.00 106,000.00 38,000.00 2,000,000.00 1,260,000.00 3,322,800.00 2,960,000.00 381,750.00 $•4,700,000.00 355,000.00 6,359,000.00 61,000.00 15,700.00 161,000.00 100,000.00 46,000.00 1,000,000.00 1,500,000.00 600,000.00 106,000.00 38,000.00 2,000,000.00 400,000.00 1,260,000.00 2,922,800.00 3,460,000. 00 381,750.00 .21,914,000.00 49,178,046.94 191,938,074.59 317,886,667.00 98,684,545.47 339,800,667.00 147,862,592.41 500,000.00 90,000.00 90,000.00 219,202,121.53 888,300.56 15,057,400.00 4,239,000.00 29,000.00 SECRBTARY OF T H E TEEASUEY. EXHIBIT - 251 40. SECURITIES OWNED BY THE'UNITED STATES GOVERNMENT. [Compiled from latest reports received by the Treasury, June 30,1923.] Obligations of foreign Governments, under authority of acts approved Apr. 24, 1917, and Sept. 24, 1917, as amended (on basis of cash advances, less repayments of principal): ^ Belgium $347,210,808.68 Cuba 6,988,000.00 Czechoslovakia 61,974,041.10 France 2,933,266,231.96 Great Britain 4,105,318,358.44 Greece 15,000,000.00 Italy 1,648,015,970.90 Liberia 26,000.00 Rumania 23,205,819.52 Russia 187,729,750. 00 Serbia 26,125,467.05 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 relief, pursuant to act approved Feb. 25, 1919: ^ Armenia Czechoslovakia Esthonia Finland Latvia Lithuania Poland Russia , $9,354,859,447.65 29,818,761.38 20,604,302.49 12,213,377.88 407,341,145.01 2,521,869.32 4,159,491.96 175,590.28 77,408,016.21 12,922,675.42 406,082.30 24,978,020.99 592,549,332.24 2,538,677.03 8,028,412.16 6,428,089.19 1,785,767.72 8,281,926.17 2,610,417.82 822,136.07 51,671,749.36 4,465,465.07 Total Foreign obligations received from the United States Grain Corporation on accoiyit of final liquidation, given for relief pursuant to act approved Mar. 30,1920: i Armenia 3,931,505.34 Austria ' 24,056,708.92 Czechoslovakia. 2,873,238.26 Hungary 1,685,835. 61 Poland 24,312,514.37 84,093,963.55 Total : Capital stock of war emergency corporations: Capital stock of the Emergency Fleet Corporation Offset by cash deposited with the Treasurer of the.United States to the credit of the corporation 56,858,802. 49 Capital stock of the Hoboken Manufacturers Railroad Co Capital stock of United States Housing Corporation, issued Less amount retired plus cash deposits covered into Treasury under act approved July 11,1919 ^ Capital stock of United States Sugar Equalization Board ( I n c . ) . . . Offset by cash deposited with the Treasurer of the United States to credit of the corporation Capital stock of the United States Spruce Production Corporation.. Less cash depo.sited with, the Treasurer of the United States to the credit of the corporation 50,000,000.00 62,244,385.32 ' 70,000,000.00 400,000.00 20,709,963.98 ~ 5,000,000.00 49,290,036.02 12,797,160.19 10,000,000.00 2,963,334.44 7,036,665.56 Capital stock of the War Finance Corporation, authorized and issued Less cash deposited with the Treasurer U. S. to credit of War Finance Corporation 500,000,000.00 417,957,876.60 82,042,123. 40 1 The figures do not include interest accrued and,unpaid. The Treasury received on July 6,1923, funded obligation's of the Government of Great Britain aggregating $4,600,000,000 face amount, pursuant to the debt settlement approved by the act of February 28,1923, in lieu of the demand obligations, and accrued interest, of that Government shown above. The funded obligations so received will be exhibited in the statement of securities owned by the United States Government, issued for date of July 31, 1923. 62166—FI 1 9 2 3 — 1 8 252 REPORT ON T H E FINANCES. Obligations of carriers acquired imder section 7 of the Federal control act. approved Mar. 21,1918, as amended:' Boston & Maine Railroad '. New York Central Railroad Co Pennsylvania Railroad Co Seaboard Air Line Railway Co Washington, Brandy wine & Point Lookout Raikoad Co $26,061,000.00 6,500,000.00 16,000,000.00 1,850,000.00 50,000.00 Total • Equipment trust 6 per cent gold notes, acquired by Director General of Railroads pursuant to Federal control act of Mar. 21,1918, as amended, and act approved Nov. 19.1919, to provide for the reimbursement of the United States for moiivc power, cars, and other equipment ordered for carriers under Federal control: ^ Ann Arbor Railroad Co Atlanta, Birmingham & Atlantic Railway Co Baltimore & Ohio Railroad Co Boston & Maine Railroad Carolina, Clinchfield & Ohio Railway Charleston & Western Carolina Railway Co Chicago & Alton Railroad Co Chicago & Eastern Illinois Railroad Co Chicago, Indianapolis & LouisviUe Railway Co Chicago Great "Western Railroad Co Chicago, Milwaukee & St. Paul Railway Co Chicago & Western Indiana Railroad Co .• Detroit & Toledo Shore Line Railroad Co Erie Railroad Co Grand Trunk Railway of Canada Grand Trunk Western Railway Co • Kansas City Southern Railway Co Maine Central Railroad Co Miimeapolis & St. Louis Railroad Co Missouri, Kansas & Texas Railway Co Missouri Pacific Railroad Co Mobile & Ohio Railroad Co MorgantowTi & ICingwood Railroad Co New York, New Haven & Hartford Railroad Co Norfolk Southern Railroad Co Pere Marquette Railway Co Seaboard Air Line Railway Co .• Spokane, Portland & Seattle Railway Co St. Louis-San Francisco Railway Co : Texas & Pacific Railway Co Toledo, St. Louis & Western Railroad Co Wabash Raihoad Co ..." Western Maryland Railway Co AVheeling & Lake Erie Railway Co Total ..: Obligations of carriers acquired pursuant to section 207 of the transportation act. approved Feb. 28,1920, as amended: Ann Arbor Railroad Co Baltimore & Ohio Railroad Co Bangor & Aroostook Railroad Co Boston & Maine Railroad ^ Chicago & Eastern Illinois Raihoad Co Chicago Great Western Railroad Co Chicago, Milwaukee & St. Paul Railway Co Chicago, Rock Island & Pacific Railway Co Delaware & Hudson Co Erie Raihoad Co Gulf, Mobile & Northern Railroad Co International & Great Northern Railway Co Kansas, Oklahoma & Gulf Railway Co Maine Central Raihoad Co Minneapolis <$i St. Louis Railroad Co Missouri-Kansas-Texas Railroad Co Missouri Pacific Raihoad Co New York, Chicago & St. Louis Raihoad Co New York, New Haven & Hartford Raihoad Co Norfolk Southern Railroad Co' St. Louis-San Francisco .Railway Co Virginian Railroad Co Wabash Railway Co Western Maryland Railway Co Wheeling & Lake Erie Railway Co $49,461,000.00 211,200 917,000 4,747,200 1,826,400 1,656,000 . 210,000 484,800 196,800 277,200 174,000 4,386,000 74,400 133,200 1,201,200 238,800 825,600 254,400 320,400 403,200 337,200 2,776,800 162,000 693,600 1,186,800 105,600 2,694,000 440,400 234,000 3,836,400 638,400 315,600 2,769,800 229,200 1,224,000 • 36,181,600.00 526,000.00 9,000,000.00 325,000.00 1,030,000.00 3,425,000.00 950,000.00 20,000,000.00 8,000,000.00 1,500,000.00 8,250,000.00 480,000.00 2,400,000.00 1,410,000.00 750,000.00 1,250,000.00 4,750,000,00 3,000,000.00 1,000,000.00 64,316,500.00 200,000.00 3,000,000.00 2,000,000.00 1,600,000.00 2,000,000.00 900,000.00 Total 141,961,600.00 Obligations of carriers acquired pursuant to section 210 of the transportation act, approved Feb. 28,1920, as amended: Akron, Canton & Youngstown Railway Co : 212,000.00 Alabama, Tennessee & Northern Railroad Corporation 447,750.00 Alabama & Vicksburg Railway Co 1,394,000.00 Ann Arbor Railroad Co 470,000.00 s This amount does not include securities purchased by the Director General of Railroads under the provisions of section 12 of the Federal control act, approved March 21, 1918. 8 The notes are in series, which mature, respectively, on the 15th day of January in various years up to 1935. 253 SECRETARY OF THE TREASURY. O b l i g a t i o n s of carriers a c q u i r e d p u r s u a n t t o section 210 of t h e t r a n s p o r t a t i o n act, a p p r o v e d F e b . 28,1920, as a m e n d e d — C o n t i n u e d . Aransas Harbor Terminal Railway A t l a n t a , B i r m i n g h a m & A t l a n t i c R a i l w a y Co B a l t i m o r e & Ohio R a i l r o a d Co B a n g o r & Aroostook R a i l r o a d Co B i r m i n g h a m & N o r t h w e s t e r n R a i l w a y Co B o s t o n & Maine R a i h o a d : Buffalo, Rochester & P i t t s b u r g h R a i l w a y Co C e n t r a l of Georgia R a i l r o a d Co Central N e w E n g l a n d R a i l r o a d Co Central V e r m o n t R a i h y a y Co Charles City Western R a i l w a y Co Chesapeake & Ohio R a i l w a y Co. Chicago & E a s t e r n Illinois R a i l r o a d Co., receiver of Chicago Great Western R a i h o a d Co Chicago, Indianapolis & Louisville R a i l w a y Co Chicago, Milwaukee & St. P a u l R a i l w a y Co Chicago, R o c k Island & Pacific R a i l w a y Co Chicago & W e s t e r n I n d i a n a R a i l r o a d Co Cisco & Northeastern R a i l w a y Co Cowlitz, C h e h a h s & Cascade R a i l w a y C o . . • C u m b e r l a n d & Manchester R a i l r o a d Co Des Moines & Central I o w a R a i l r o a d , formerly t h e I n t e r - U r b a n Railway C o . - . : E r i e R a i h o a d Co EvansviUe, Indianapolis & Terre H a u t e R a i l w a y Co F e r n w o o d , Columbia & Gulf R a i h o a d Co F l e m i n g s b u r g & N o r t h e r n R a i h o a d Co F o r t Dodge, Des Moines & Southern R a i l r o a d Co F o r t S m i t h & Western R a i l r o a d Co., receiver of Gainesville & N o r t h w e s t e r n R a i l r o a d Co •Georgia & Florida R a i l w a y , receivers of Great N o r t h e r n R a i l w a y Co Greene C o u n t y Railroad Co Gulf, Mobile & N o r t h e r n R a i l r o a d Co H o c k i n g VaUey R a i l w a y Co: K a n s a s City, Mexico & Orient R a i h o a d Co., receiver of K a n s a s City T(irminal R a i l w a y Co L a k e E r i e , F r a n k l i n & Clarion R a i h o a d Co LouisviUe & .TeffersonviUe B r i d g e a n d R a i h o a d Co Maine Central R a i h o a d Co Minneapolis & St. Louis R a i h o a d Co Missouri, K a n s a s & T e x a s R y . Co. of T e x a s , receiver of Missouri & N o r t h A r k a n s a s R a i l w a y Co Missouri Pacific R a i h o a d Co N a t i o n a l R a i l w a y Service Corporation N e w York, N e w H a v e n & H a r t f o r d R a i h o a d Co Norfolk Southern R a i h o a d Co P e o r i a & Pekin Union R a i l w a y Co Salt L a k e & U t a h R a i l r o a d Co Seaboard Air Line R a i l w a y Co Seaboard B a y Line Co Shearwood R a i l w a y Co Tennessee Central R a i l w a y Co Toledo, St. Louis & W e s t e r n R a i l r o a d Co., receiver of Trans-Mississippi T e r m i n a l R a i l r o a d Co Virginia B l u e R i d g e R a i l w a y Co Virginian R a i l w a y Co. Virginia S o u t h e r n Railroad Co Waterloo, Cedar FaUs & N o r t h e r n R a i l w a y Co W e s t e r n M a r y l a n d R a i l w a y Co W h e e l i n g & L a k e E r i e R a i l w a y Co W i c h i t a , N o r t h w e s t e r n R a i l w a y Co W i h n i n g t o n , B r u n s w i c k & Southern R a i l r o a d Co Total C a p i t a l stock of t h e P a n a m a R a i l r o a d Co Capital stock of Federal l a n d b a n k s , on basis of purchases, less r e p a y ments to date: Springfield, Mass B a l t i m o r e , Md Columbia, S. C LouisviUe, K y N e w Orleans, L a St. Louis, Mo : Wichita, Kans Houston, Tex. , Berkeley, Cahf. Total $50,000.00 180,000.00 2,900,000.00 168,000.00 75,000.00 14,705,479.00 1,000,000.00 206,180.00. 300,000.00 180,000.00 140,000.00 8,073,023.97 785,000.00 2,205,373.00 155,000.00 35,000,000.00 • 9,862,000.00 7,719,000.00 236,450.00 45,000.00 375,000.00 633,500.00 11,574,450.00 400,000.00 25,000.00 7,250.00 200,000.00 156,000.00 75,000.00 792,000.00 1,742,000.00 54,000.00 1,433,500.00 1,665,000.00 2,500,000.00 580,000.00 > 21,250.00 147,000.00 2,373,000.00 1,382,000.00 420,000.00 3,500,000.00 5,649,760.00 10,350,843.00 24,030,000.00 1,537,300.00 1,797,000.00 904,000.00 12,957,400.00 4,400,000.00 29,000.00 1,500,000.00 600,000.00 1,000,000.00 106,000.00 2,000,000. 00 38,000.00 1,260,000.00 3,222,800.00 3,460,000.00 381,750.00 90,000.00 • $191,779,058.97 7,000,000.00 637,700.00 555,275.00 357,850.00 182,625.00 271,490.00 260,810.00 251,325.00 23,920.00 545,075.00 3.086.07^ 254 REPORT ON T H E FINANCES. Capital stock of Federal intermediate credit banks, acquired pursuant to the "agricultural credits act of 1923," approved Mar. 4,1923: Spi?ingfleld,^Iass.. Baltimore, Md Columbia, S. C Louisville, Ky New Orleans, La St. Louis, Mo • St.Paul,Minn Omaha, Nebr Wichita, Kans Houston, Tex Berkeley, Calif • Spokane, Wash ' $1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000 00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 Total Federal farm loan bonds, acquired pursuant to act approved Jan. 18,1918: Federal farm loan 4^ per cent bonds Securities received by the Secretary of War on account of sales of surplus war supplies.. Securities received by the Secretary of the Navy on account of sales of surplus property.. Securities received by the United States Shipping Board on account of sales of ships, etc.. Grand total $12,000,000.00 101,885,000.00 11,627,846.76 9,935,243.14 45,188,086.66 10,839,774,452.46 MEMORANDUM. Amount due the United States from the central branch of the Union Pacific Railroad on account of bonds issued (Pacific Railroad aid bonds, acts approved July 1, 1862, July 2, 1864, and May 7, 1878): Principal Interest Total 1,600,000.00 1,923,703.52 3,523,703.62 NOTE.—This statement is made up on the basis of the face value of the securities therein described as received bythe United States, with due allowance for repayments. To the extent that the securities are not held in the custody of the Treasury, the statement is made up from reports received from other Government departments and esjjablishments. The statement does not include securities which the United States holds'as collateral, or as the result of the investment of trust funds (as, for example, securities held or account of the Alien Property Custodian, the United States Government life insurance fund, and other similar trust funds). EXHIBIT 41. OBLIGATIONS 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 U N I T E D S T A T E S T R E A S U R Y , T O G E T H E R W I T H 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 OF 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 OR E N D I N G WITH N O V E M B E R 15, 1923. Obligations r e p r e s e n t i n g cash advanced under Liberty bond acts. Country. Principal. I n t e r e s t (including i n t e r e s t d u e N o v . 15, 1923). Obligations received from 0 t h e S e c r e t a r v of W a r a n d t h e Secretary of t h e • N a v v on a c c o u n t of sales of s u r p l u s w a r m a t e r i a l " (act of J u l y 9,1918). • biigation s r e c e i v e d from t h e A m e r i c a n R e hef A d m i n i s t r a t i o n o n a c c o u n t of reUef s u p plies furnished (act of F e b . 25, 1919). Obhgations r e c e i v e d from t h e U n i t e d S t a t e s G r a i n Corporation o n a c c o u n t of sales of flour ( a c t o f M a r . .30,1920). Total. Total indebted- U2 O Principal. Interest. Principal. 'Interest. Principal Interest. Principal. Interest. • Armenia Austria Belgium $347,210,808.68 Czechoslovakia 61,974,041.10 Esthonia... Finland France 2,933,265,231.96 Great Britain M, 600,000,000.00 Greece 15,000,000.00 Hungary... Italy 1,647,997,050.16 Latvia Liberia 26,000.00 Lithuania.. Nicaragua.. Poland Roumania.. 23,205,819. 52 Russia • 187,729,750.00 Yugoslavia. 26,059,865.40 $8,028,412.15 $1,605,682.44 $3,931,505.34 $697,596. 50 24,055,708.92 4,330,027.62 $77,433,602.90 $29,818,761.38 in (2) • 2,521,869.32 4,818.85 378,107.66 $14 263,196. 4328,385,736. 54 454,463,172.96 110,905,724. 02 19,026,052.99 16,788,728. 55 2,789, 582.95 9,000,000.00 718,073.83 650,051,228.67 3,990,657,605.64 4,600,000,000.00 15,000,000.00 1,685,835.61 1,647,997,050.16 5,132,287.14 522,083.56 26; 000.00 i64,427.20 4,981,628.03 175,590.28 155,930,955.97 10,334,349.88 24,312,514.37 4,161,997. 53 36,128,494.94 192,601,297.37 711,465. 81 51,037,886.39 4,600,000,000.00 16,500,000.00 1,500,000.00 1,989,286. 03 303,450.42 367,082,346.73 2,015,079,396.89 6,032,478.35 900,191.22 30,818. 85 4,818.85 5,977,963.63 996,325.60 175, 590.28 182,471,303.85 26,540,347.88 43,799,024.04 7,670, 529.10 241,903,072.43 49,301,775.06 61,587,156.60 10,549,270.11 1,685,835.61 367,082,346.73 $2,303,278.94 4,330,027.62 177,433,602.90 91,879,671.03 13,999,145.60 8,281,926.17 3,340,606,376.97 13,234,843. 87 20,604,302. 49 $3,988,408.38 6,428,089.19 1,285,617. 84 2,873,238. 25 346,907.35 12,213,377.88 2,442,675.60 1,785,767.72 718,073.83 3 8,281,926.17 (2) 650,051,228.67 407,341,145.01 - 1,500,000.00 $11,959,917.49 24,055,708.92 377,029, 570.06 617,182.90 303,450.42 4,159,491.96 822, i36.07 831,898.40 2,610,417.82 175,590.28 (') 79,946,692.24 51,671,749.36 5,085,993.98 12,922,675.42 12,044,000.47 406,082.30 2,584,535.12 4,405,466.07 48,559,8.53.07 30,456.18 6,918,019.27 24,978,020. 99 4,631,250.84 T o t a l . 9, 842,468,566. 82 1,168,870,707.34 595,088,009.27 26,931,332.65 84,093,963.56 15,688,607.91 56,858,802.49 10,010,254.97 10,578,609,342.13 1,221,500,902.87 11,800,010,245.00 1 No interest due on Nicaraguan notes.until maturity, as is also the case of certain Belgian obhgations aggregating $2,284,161.40. ' Interest has been paid as it became due. 3 Agreement providing for refunding of these obhgations as to both principal and interest executed, subject to approval of Congress, on May 1,19^. Bonds of Finland amounting to $9,000,000 will be dehvered to the Treasury in exchange for the obligations now held if the agreement is approved. i I^efunding bou4s received un^er terms of ^greenient concluded pursuant to the act ol Congress approved Feb. 9,1922, as amended by act of CoagressapprQveci Feb. 28^1923. o w. Ui 256 REPORT ON THE FINANCES. E X H I B I T 42. [ P U B L I C — N o . 139—67TH CONGRESS.] [ H . R . 8762.] An Act To create a commission authorized under certain conditions to refund or convert obligations of foreign Governments held by the United States of America and. for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. That a World War Foreign Debt Commission is liereby created consisting of five members, one of wliom sliall 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 commission created by section 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 construed to 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 4^ 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 payment thereof. SEC. 4. That 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 entered into, with the approval of the President, by eacn foreign Government upon the completion of the authority granted under this Act. Approved, February 9, 1922. SECRETARY OF T H E TREASURY. EXHIBIT 257 43. A D D B E S S O F T H E P R E S I D E N T O F T H E U N I T E D S T A T E S TO T H E C O N G R E S S F E B R U A R Y 7, 1 9 2 3 , S U B M I T T I N G T H E R E P O R T O F T H E WORLD WAR F O R E I G N D E B T COMMISSION. To the Congress: You have been asked to assemble in joint session in order that I may submit to j o u the report of the World War Foreign Debt Commission, covering its accepted proposal for the funding of the debt due to the United States from the Government of Great Britain. This report, concluded on February 3, 1923, reads as follows: The PRESIDENT: The World War Foreign Debt Commission created under the act of Congress approved February 9, 1922, having received the mission appointed b y th.e British Government to consider the funding of the demand obligations of that Government held b y the United States, reports as follows: The British Government designated as its representatives t h e Bight Honorable Stanley Baldwin, Chancellor of the Exchequer, and Mr. Montagu Norman, the governor of the Bank of England, who have conferred with the commission in Washington and presented facts relating to the position of the British Government. The commission has also met frequently in separate sessions and has given the fullest consideration to the problems involved in the funding of the British debt to the United States. I t became manifest at the outset that it would not be possible to effect an agreement for funding within the limits of the act approved February 9, 1922, and the commission has, therefore, considered the practicability of a settlement on some other basis, and though it has not been able, in the, absence of authority under the law, to conclude negotiations, it unanimously recommends for submission to Congress a settlement with the British Government, as follows: Principal of notes to be refunded .' $4, 074, 818, 358. 44 Interest accrued and unpaid u p to Dec. 15, 1922, at the rate of A\ per cent 629, 836,106. 99 4, 704, 654, 465. 43 Deduct payments made Oct. 16, 1922, and Nov.. 15, 1922, with interest at 4^ per cent thereon to Dec. 15, 1922 To be paid in casjh , Total principal of indebtedness as of Dec. 15,1922, for which British Government bonds are to be issued to the United States Government at par '. 100, 526, 379. 69 4,604,128,085.74 4,128, 085. 74 4, 600,000,000. 00 The principal of the bonds shall be paid in annual installments on a fixed schedule, subject to the right of the British Government to make these payments in three-year periods. The aniount of the first year's installment will be $23,000,000 and these annual installments will increase, with due regularity during the life of the bonds until, in the sixty-second year, the amount of the installment will be $175,000,000, the aggregate installments being equal to the total principal of the debt. The British Government shall have the right to pay off additional amounts of the principal of the bonds on any interest date upon 90 days' previous notice. Interest is to be payable upon the unpaid balances at the follomng rates, on December 15 and Jiine 15 of each year: 3 per cent semiannually, June 15, 1923, to December 15, 1932, inclusive; 3^ per cent semiannually, June 15, 1933, until final payment. For the first five years one-half the interest may be deferred and added to the principal, bonds to be issued therefor similar to those of the original issue. Any payment of interest or of principal may be made in any United States Government bonds issued since April 6, 1917, such bonds to be taken at par and accruea interest. The commission believes that a settlement of the British debt to the United States on this basis is fair and just to both Governments, and that its prompt adoption will' 258 REPORT ON T H E FINANCES. make a most important contribution to international stability. The extension of payment both of. the principal and interest over a long period will make for stability in exchange and promotion of commerce between the two countries. The payment of principal has been established on a basis of positive installments of increasing volume, firmly establishing the principle of repayment of the entire capital sum. The payment of interest has been established at the approximately^ normal rates payable b y strong governments over long terms of years. I t has not been the thought of the commission that it would be just to demand over B. long period the high rate of interest naturally maintained during the war and reconstruction, and that such an attempt would defeat our efforts at settlement. Beyond this the commission has felt that the present difficulties of unemployment and high taxation in the United Kingdom should be met with suitable consideration during the early years, and, therefore, the commission considers it equitable and desirable that payments during the next few years should be. made on such basis and with such flexibility as will encourage economic recuperation not only in the countries immediately concerned b u t throughout the world. This settlement between the British Government and the United States has the utmost significance. I t is a business settlement fully preserving the integrity of the obligations, and it represents the first gi'eat step in the readjustment of the intergovernmental obligations growing out of the war. Respectfully submitted. A. W. MELLON, Chairman. CHARLES E . H U G H E S . HERBERT HOOVER. R E E D SMOOT. THEODORE E . BURTON. In its comments upon the arrangements negotiated the commission itself has said essentially everything necessary to commend the agreement to your sanction. Note that the commission urges that the settlement is on a basis which ^'is fair and just to both Governments,'' and ^^wall make a most important contribution to international stability. ^^ More important still is the closing observation that ^^it is a business settlement, fully preserving the integrity of the obligations, and it represents the first great step in the readjustment of the intergovernmental obligations growing out of the war.'^ I n these observations I most heartily approve. The call of the world to-day is for integrity of agreements, the sanctit}^ of covenants, the validity of contracts. Here is the first clearing of the war-clouded skies in a debt-burdened world, and the sincere commitment of one great nation to validate its financial pledges and discharge its obligations in the highest sense of financial honor. There is no purpose to report that your commission has driven a hard bargain with Great Britain, or to do a less seemly thing in proclaiming a rare generosity in settlement. Amid widespiread clamor for the cancellation of World War debts, as a fancied but fallacious contribution toward peace—a clamor not limited to the lands of debtor nations but insistent amon^ many of our own people—the British comm.ission came to make acknowledgment of the debt, to put fresh stamp of approval upon its validity and agree upon terms for its repayment. I t was manifest from the beginning that Great Britain could not undertake any program of payment which would conform to the limitations of time and interest rates which the commission had been authorized to grant. But here was a great nation aclaiowledging its obligations and seeking terms in which it might repay.. So your commission proceeded to negotiate in a business way for a.fair SEGUETARY OF T H E TREASUR-^?. 259 and just settlement. Such a settlement had to take into consideration the approximately normal interest rates payable, as the commission suggests, ^^by strong governments over a long term of years,'^ with a temporary interest rate and suitable options adjusted to the tremendous problems of readjustment and recuperation. Your commission went so far as it believed the American sense of fair play would justify. Even then the British Debt Commission did not feel justified by its instructions to accept the proposal. Only after submission to the British Cabinet was the proposal of your commission accepted, and I bring it to you, with the earnest recommendation that it be given, so far as legislative procedure will admit, a cordial and prompt approval. A transaction of' such vast importance naturally has attracted widespread attention and much of commendation. I t is a very gratifying thing to note the press and public have uttered substantially unanimous approval. I t means vastly more than the mere funding and the ultimate discharge of the largest international loan ever contracted. I t is a recommitment of the English-speaking world to the validity of contract; it is in effect a plight against war and war expenditures and a rigid adherence to that production and retrenchment which enhances stabilit}^ precisely as it discharges obligations. I t can not be unseemly to say it, and it is too important to be omitted, the failure of the British xmdertaking would have spread political and economic discouragement throughout the world and general repudiation would have likely followed in its wake. But here is kept faith—willingly kept, let it be recorded—and a covenant of peace no less effective than it would be if joint British and American opposition to war were expressly agreed upon. I t is a covenant of peace and recuperation, of respect and cooperation. I t is a new element of financial and economic stabilization, when the world is sadly needing a reminder of the ways of peace. I t is an example of encouragement and inspiration, when the world is staggering in discouragement and bowed with the sorrows of wars that were and fears of wars which humanity is praying may be avoided. Ordinarily I should be reluctant to add this question to a congressional program which is already crowded, in view of the short period remaining of your session. But it is of such outstanding importance to us and to the world that I should be remiss if I did not invite your sanction even amid crowded calendars and pending problems of great importance. And I hope you will be glad to approve. If the debtor nation could decide to assume the great obligation, in two cabinet sessions, in the face of enormous financial and economic difficulties, surely the deciding authority of the creditor nation will be ready to approve in a spirit appropriate to the great transaction and with a promptness which will convey befitting appreciation. I am not unmindful of the disposition to pledge the application of anticipated payments in giving sanction to the settlement. I t is not necessary to remind the Congress that the use of monies secm*ed in the repa3^ment of war loans has been pledged by the very grant of authority to make the loans. The repeal of that commitment is alwa5^s within the authority of the Congress if such a repeal is deemed wise, but it will best comport with the importance of such 260 REPORT ON THE FINANCES. an international transaction to give a frank, exclusive, and direct decision, uninvolved by any disposition of the monies, which the funding program ultimately will bring to the Federal Treasury. Nor am I unmindful of the importance of pending legislation with which any prolonged consideration of the debt settlement might come in conflict. Knowing there is abundant time for ample debate I would be recreant to my belief in the urgency of a decision on the merchant marine bill if I did not renew the request that it be. brought to a final disposition. I venture the illusion because it has been threatened that the merchant marine act shall not be allowed to come to a vote. To-day you have a debt settlement which is to bring the Treasury something more than a hundred and fifty millions a year, and we rightty appraise it a notable accomplishment. On the other hand, the Executive branch of the Government is charged with the operation of Government-owned shipping, which is losing the Federal Treasury $50,000,000 a year, i t is as important to avoid losses as it is to secure funds on debts or from taxation sources. I have detailed the discouraging situation with our shipping to Congress, and have suggested what is believed to be a remedy, not only to put an end to the losses but to upbuild an American merchant marine to meet our cherished aspirations and further our commerce abroad. In inviting your support I frankly urged that if Congress would not approve, that it should submit some alternative remedy. I am unwilling, the public is unwilling, to continue these appalling losses to the Public Treasury when we know we are operating with no prospect of relief or of ultimate achievement. Congress owes to itself, to the executive branch of the Government, and to the American public some decisive action. Mere avoidance by prolonged debate is a mark of impotence on a vitally important public question. I plead for a decision. If there is a favorable majority, the bill should be enacted. If a majority is opposed, defeat will be decisive. Then, if Congress fails in providing the requested alternative measure, the executive branch of the Government may proceed as best it can to end the losses in liquidation and humiliation. I speak frankly, because the situation demands frankness. I am trying to emphasize a responsibility which can not be met by one branch of the Government alone. There is call for congressional expression, not mere avoidance. I am not seeking now to influence the Senate's decision, but I am appealing for some decision. There is time, abundant time, for decisive action on both these tremendously important questions. I have brought up the shipping bill because I can foresee the possible conflict for right of way, but it ought and can be avoided. There is time for essential debate of both, and each carries its own appeal. Either is fit to be recorded a chapter in great achievement, both will mark a signal triumph. Both are inseparably related to our good fortunes at home and our high place in the world. SECRETARY OF THE TREASURY. 261 E X H I B I T 44. [PUBLIC—No. 445—67TH CONGRESS.] « [ H . R . 14254.] An Act To amend the Act entitled "An Act to create a commission authorized under certain conditions to refund or convert obligations of foreign governments held by the United States of America, and for other purposes," approved February 9, 1922. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the first proviso of section 2 of the Act entitled ^^ An Act to create a commission authorized under certain conditions to refund or convert obligations of foreign governments held by the United States of America, and for other purposes,'^ approved February 9, 1922, is amended to read as follows: "Provided, That the settlement of indebtedness of the United Kingdom of Great Britain and Ireland to the United States, as follows: Principal of notes to be refunded. _ _ ._ $4, 074, 818, 358. 44 Interest accrued and unpaid up to December 15, 1922, at the rate of 4 i per cent. 629, 836, 106. 99 4,704,654,465.43 Deduct payments made October 16, 1922, and November 15, 1922, with interest at 4^ per cent thereon to December 15, 1922 To be paid in cash Total principal of indebtedness as of December 15, 1922, for which British Government bonds are. to be issued to the United States Government at par 100,526,379.69 4, 604, 128, 085. 74 4, 128,085.74 4, 600, 000, 000. 00 ^'The principal of the bonds shall be paid in annual installments on a fixed schedule, subject to the right of the British Government to make these payments in three-year periods. The amount of the first year's installment will be $23,000,000 and these annual installments will increase with due regularity during the life of the bonds until, in the sixty-second year, the amount of the installment will be $175,000,000, the aggregate installments being equal to the total principal of the debt. '' The British Government shall have the right to pay off additional amounts of the principal of the bonds on any interest date upon ninety days' previous notice. ^^ Interest is to be payable upon the unpaid balances at the following rates, on December 15 and June 15 of each year: At the rate of 3 per cent per amium payable semiannually from December 15, 1922, to December 15, 1932, thereafter at the rate of 3J per cent per annum pavable semiannually until final payment. '• For the first five years one-half the interest may be deferred and added to the principal, bonds to be issued therefor similar to those of the original issue. 262 REPORT ON T H E FINANCES. '^Any payment of interest or of principal may be made in any United States Government bonds issued since April 6, 1917, such bonds to be taken at par and accrued interest—is hereby approved and. authorized, and settlements with other governments indebted to the United States are hereby authorized to be made upon such terms as the commission, created by the Act approved February 9, 1922, may believe to be just, subject to the approval of the Congress by Act or joint resolution." SEC. 2. That the first section of the Act entitled '^An Act to create a commission authorized under certain conditions to refund or convert obligations of foreign governments held by the United vStates of America, and for other purposes," approved February 9, 1922, is amended to read as follows: ^'That a World War Foreign Debt Commission is hereby created consisting of eight members, one of whom shall be the Secretary of the Treasury, who shall serve as chairman, and seven of whom shall be appointed by the President, by and with the advice and consent of the Senate. Not more than four meinbers so appointed shall be from the same political party." SEC. 3. That the provisions of section 2 of this Act shall not affect the tenure of office of any person who is a member of the World War Foreign Debt Commission at the time this Act takes effect. Approved, February 28, 1923. EXHIBIT 45. A G R E E M E N T F O R T H E F U N D I N G OF T H E D E B T OF G R E A T B R I T A I N TO T H E U N I T E D S T A T E S . PROPOSAL, Dated the eighteenth day of June, 1923, by His Britannic Majesty's Government (hereinafter called GREAT BRITAIN) to the Government of the United States of America (hereinafter called the UNITED STATES) regarding the funding of the debt of Great Britain to the United States. Whereas Great Britain is indebted to the United States as of 15th December, 1922, upon demand obligations in the principal amount of $4,074,818,358.44, not including obligations in the principal amount of $61,000,000, representing advances deemed to have been made to cover purchases of silver under the Act of Congress approved 23rd April, 1918, of which $30,500,000 has been repaid in April and May, 1923, and the balance is to be repaid in 1924, pursuant to an agreement already made between the parties, and Great Britain is further indebted to the United States, as of 15th December, 1922, on account of interest accrued from 15th April and 15th May, 1919, on said $4,074,818,358.44, principal amount of demand obligations: , And Miereas Great Britain has power under the War Loan Act, 1919 (9 and 10 Geo. 5, cap 37) to issue securities in exchange for maturing securities issued under the War Loan Acts, 1914 to 1918: And whereas the demand obligations now held by the United States Treasury were so issued, and will become payable upon the request of the United vStates Treasury for their payment: SECRETARY OF THE TREASURY. 263 Now therefore Great Britain proposes, in the exercise of the powers above recited and in consideration and in faith of the statements, conditions, premises and mutual covenants herein contained, to issue to the United States, in exchange for the demand obligations now held by the United States Treasury, securities which shall be in their terms and conditions in accordance with the following provisions: 1. Amount of Indebtedness. The total amount of indebtedness to be funded is $4,600,000,000, which has been computed as follows: Principal amount of demand obligations to be funded $4, 074, 818, 358. 44 Interest accrued thereon from 15th April and 15th May, 1919, respectively, to 15th December, 1922, at the rate of 4 | per cent per annum $629, 836,106. 99 Less—Payments made b y Great Britain on 16th October and 15th November, 1922, on account of interest, with interest thereon at 4^ per cent per annum from said dates, respectively, to 15th December, 1922 100, 526, 379. 69 529, 309, 727. 30 Total principal and interest, accrued and unpaid, as of 15th December, 192"2 Paid in cash b y Great Britain, 15th March, 1923. Total indebtedness to be funded into bonds of Great Britain 4, 604,128, 085. 74 4,128, 085. 74 4, 600, 000, 000. 00 2. Issue of Long-Time Obligations. The securities, which it is proposed to issue at par as promptly as possible, shall be obligations in the principal amount of $4,600,000,000, in the form of bonds to be dated 15th December, 1922, maturing 15th December, 1984, with interest payable semi-annually on 15th June and 15th December in each year at the rate of 3 per cent per annum from 15th December, 1922, to 15th December, 1932, and thereafter at the rate of 3-|- per cent per annum until the principal thereof shall have been repaid. 3. Method of Payment. The bonds shall be payable as to both principal and interest in United States gold coin of the present standard of weight and fineness, or its equivalent in gold bullion, or, at the option of Great Britain, upon not less than thirty days' advance notice indicating the minimum amount which it is contemplated to pay at next due date in gold, cash or available funds, in any bonds of the United States issued or to be issued after 6th April, 1917, to be taken at par and accrued interest to the date of payment hereunder: provided, however, that Great Britain may at its option, upon not less than ninety days' advance notice, pay up to one-half of any interest accruing between 15th December, 1922, and 15th December, 1927, on any British bonds proposed to be issued hereunder, in bonds of Great Britain, maturing 15tn December, 1984, dated and bearing interest from the respective dates when the interest to be paid thereby becomes due and substantially similar in other respects to the original bonds proposed to be issued hereunder. All payments to be made by Great Britain on account of the principal or interest of any bonds proposed to be issued hereunder 264 REPORT ON T H E FINANCES. shall be made at the Treasury of the United States in Washington or, at the option of the Secretary of the Treasury of the United States, at the Federal Reserve Bank of New York and, if in cash, shall be made at the option of Great Britain in gold coin of the United States or in gold bullion or in immediately available funds (or, if in bonds of the United States, shall be in form acceptable to the Secretary of the Treasury of the United States). Appropriate notation of all payments on account of principal shall be made on the bonds proposed to be issued hereunder which may be held by the United States: provided, however^ that all payments in respect of any marketable obligations issued under paragraph 9 of this proposal shall be made at the office of the fiscal agents of the British Government in the City of New York. 4. Exemption from Taxation. The principal and interest of all bonds issued or to be issued hereunder shall be exempt from all British taxation, present or future, so long as they are in the beneficial ownership of the United States or of a person, firm, association, or. corporation neither domiciled nor ordinarily resident in the United Kingdom. 5. Form of Bonds. All bonds proposed to be issued hereunder to. the United States shall be payaole to the United States of America, or order, shall be issued, so far as possible, in denonlinations of $4,600,000 each, and shaU be substantially in the form set forth in the exhibit annexed hereto, and marked ^^ Exhibit A." The bonds shall be signed for Great Britain by the Counsellor of His Britannic Majesty's Embassy at Washington. 6. Repayment of Principal. To provide for the repayment of the total principal of the debt before maturity of the $4,600,000,000 principal amount of bonds to be issued, it is proposed that the bonds shall contain provisions the effect of which shall be that Great Britain shall make to the United States payments, on account of the original principal amount of the bonds to be issued, in the amounts and on the dates named in the following table: •n„^^^^^' 15th December: 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 Annual instalments to be paid on account of principal. $23,000,000 23,000,000 24,000,000 25,000,000 25,000,000 27,000,000 27,000,000 28,000,000 28,000,000 30,000,000 32,000,000 32,000, 000 32,000,000 32,000,000 37,000,000 37,000,000 37,000,000 T)^ 15th December—Contd. 1940 1941 1942.. 1943 1944 1945.: 1946 1947 1948.. 1949 1950 1951... 1952 1953. 1954 1955 1956 Annual instalments to be paid on account of principal. . 142,000,000 42,000,000 42,000,000 42,000,000 46,000,000 46,000,000' 16,000,000 51,000,000 . 51,000,000 51,000,000 53,000,000 55,000,000 57,000,000 60,000,000 64,000,000 64,000.000 64,000,000 SECEETAEY OF T H E TEEASUEY. Date. 15th December—Contd. 1957 1958. 1959. 1960. 1961. 1962. 1963. 1964. 1965. 1966. 1967. 1968 1969 1970 1971 Annual instalments to be paid on account of principal. $67,000,000 70,000,000 72,000, 000 74,000, 000 78,000,000 78,000,000 83,000,000 85,000,000 89,000,000 94,000,000 96,000,000 100,000,000 105,000,000 110,000,000 114,000,000 Bate. 15th December—Contd. 1972 1973 1974 1975.. 1976 1977 1978 1979 1980 1981 1982 1983 1984 Total 265 Annual instalments to be paid on account of principal. $119,000,000 123,000,000 127,000,000 132,000,000 136,000,000 141,000,000 146,000,000 151,000,000 156,000,000 162,000,000 167,000,000 175,000,000 175,000,000 4, 600,000,000 Provided, however, that Great Britain may at its option, upon not less than ninety days' advance notice, postpone any payment of principal falling due as hereinabove provided to any subsequent 15th June or 15th December, not more than two years distant from its due date, but only on condition that, if Great Britain shall at any time exercise this option as to any payment of principal, the payment falling due in the next succeeding year cannot be postponed to any date more than one year distant from the date when itl^ecomes due, unless and until the payment previously postponed shall actually have been made, and the payment falHng due in the second succeeding year cannot be postponed at all unless and until the payment of principal due two years previous thereto shall actually have been made. I n the event of Great Britain issuing bonds to the United States in payment of interest accruing between 15th December, 1922, and 15tn December, 1927, as proposed in paragraph 3 above, the bonds so issued shall contain provision for the payment of their principal before maturity through annual instalments on account of principal corresponding substantially to the schedule of payments on account of principal appearing in the table hereinabove set forth. 7. Payments before Maturity. Great Britain may at its option, on any interest date or dates upon not less than ninety days' advance notice, make advance payments of principal, in addition to the payments required to be made by the provisions of the bonds in accordance with paragraph 6 of this proposal. Any such additional payments shall first be applied to the principal of any bonds which shall have been issued hereunder on account of interest accruing between 15th December, 1922, and 15th December, 1927, and then to the principal of any other bonds which shall have been issued hereunder. Any payments made to the United States under this provision shall be in amounts of $1,000,000 or multiples thereof. 8. Calculation of Interest. Notwithstanding anything herein contained, the interest payable from time to time on the bonds proposed to be issued shall be computed on the amount of the principal outstanding on the previous 266 REPORT ON T H E FINANCES. interest date, with adjustments in respect of any payment on account of principal which may have been made since the previous interest date. 9. Exchange for MarTcetable Obligations. Great Britain will issue to the United States at any time or from time to time, at the request of the Secretary of the IVeasury of the United States, in exchange for any or all of the bonds proposed to be issued hereunder and held by the United States, definitive engraved bonds in form suitable for sale to the public, in such amounts and denominations as the Secretary of the Treasury of the United States may request, in bearer form, with provision for registration as to principal, and/or in fully registered form, and otherwise on the same terms and conditions, as to dates of issue and maturity, rate or rates of interest, exemption from taxation, payment in bonds of the United States issued or to be issued after 6th April, 1917, payment before maturity, and the like, as the bonds surrendered on such exchange, except that the bonds shall carry such provision for repayment of principal as shall be agreed upon; provided that, if no agreement to the contrary is arrived at, any such bonds shall contain separate provision for pa37ments before maturity, conforming substantially to the table of repayinents of principal prescribed by paragraph 6 of this proposal and in form satisfactory to the Secretary of the Treasury of the United States, such payments to be computed on a basis to accomplish the retirement of any such bonds by 15th December, 1984, and to be made through annual drawings for redemption at par and accrued interest. Any payments of principal thus made before maturity on any such bonds shall be deducted from the payments required to be made by Great Britain to the United States in the corresponding years under the terms of the table of repayinents of principal prescribed in paragraph 6 of this proposal. Great Britain will deliver definitive engraved bonds to the United States in accordance herewith within six months of receiving notice of any such request from the Secretary of the Treasury of the United States, and pending the delivery of the definitive engraved bonds will, at the request of the Secretary of the Treasury of the United States, deliver temporary bonds or interim receipts in a form to be agreed upon within three months of the receipt of such request. The United States, before off'ering any such bonds or interim receipts for sale in Great Britain, will first offer them to Great Britain for purchase at par and accrued interest and Great Britain shall likewise have the option, in lieu of issuing to the United States any such bonds or interim receipts, to make advance redemption, at par and accrued interest, of a corresponding amount of bonds issued hereunder and held by the United States. 10. Cancellation and Surrender of Demand Obligations. Upon the delivery to the United States of the $4,600,000,000 principal amount of bonds proposed to be issued hereunder, the United States will cancel and surrender to Great Britain, through the British Ambassador at Washington, or his representative, at the Treasury of the United States in Washington, the demand SECRETARY OF THE TREASURY. 267 obligations of Great Britain in the principal amount of $4,074,818,358.44 described in the preamble to this proposal. 11. Notices. Any notice, request or consent under the hand of the Secretary of the Treasury of the United States shall be deemed and taken as the notice, request, or consent of the United States, and shall be sufficient if delivered at the British Embassy at Washington or at the office of the Permanent Secretary of the British Treasury in London; and any notice, request, or election from or by Great Britain shall be sufficient if delivered to the American Embassy in London or to the Secretary of the Treasury of the United States at the Treasury of the United States in Washington. The United States in its discretion may waive any notice required hereunder, but any such waiver shall be in writing and shall not extend to or affect any subsequent notice or impair any right of the United States to require notice hereunder. Signed on behalf of the Lords Commissioners of His Majesty's Treasury, this eighteenth day of June, 1923. Washington. A. GEDDES, His Britannic Majesty^s Ambassador Extraordinary and Plenipotentiary. (Form of Bond.) T H E GOVERNMENT OF THE U N I T E D KINGDOM. Dated $ Sixty-two year 3-3^ per cent Gold Bond 15th December, 1922. ''Maturing 15th December, • ,^ 1984. No. The Government of the United Kingdom, hereinafter called Great Britain, for value received, promises to pay to the United States of America, hereinafter called the United States, or order, on the 15th day of December, 1984, the sum of Four Million Six Hundred Thousand Dollars ($4,600,000), less any amount which may have been paid upon the principal hereof as endorsed upon the back hereof, and to pay interest upon said principal sum semiannually on the fifteenth day of June and December in each year at the rate of three per cent per annum from 15th December, 1922, to 15th December, 1932, and at the rate of three and one-half per cent per annum thereafter until the principal hereof shall have been paid. All payments on account of principal and/or interest shall be laade at the Treasury of the United States in Washington, or, at the option of the Secretary of the Treasury of the United States, at the Federal Reserve Bank of New York. This bond is payable as to both principal and interest in gold coin of the United States of America in the present standard of weight and fineness or in its equivalent in gold bullion, or, at the option of Great Britain, upon not less than thirty days' notice indicating the minimum amount which it is contemplated to pay at next due date in gold, cash or available funds, in any bonds of the United States issued or to be issued after 62166—FI 1923 19 268 REPORT ON T H E FINANCES. 6th April, 1917, to be taken at par and accrued interest to the date of payment hereunder; provided, however, that Great Britain may at its option, upon not less than ninety days' advance notice, pay up to one-half of any interest accruing hereon between 15th December, 1922, and 15th December, 1927, in bonds of Great Britain dated and bearing interest from the respective dates when the interest to be paid thereby becomes due, and substantially similar in maturity and other respects to this bond. The principal and interest of this bond shall be exempt from all British taxation, present or future, so long as it is in the beneficial ownership of the United States, or of a person, firm, association or corporation neither domiciled nor ordinarily resident in the United Kingdom. In order to provide for the repayment of the principal of this bond before maturity. Great Britain will make to the United States payments of principal in the amounts, and on the dates shown in the following table: .,^.. J:^^^- , 15th December: 1923 1924. 1925. 1926. 1927. 1928. 1929. 1930. 1931. 1932. 1933. 1934. 1935. 1936. 1937. 1938. 1939. 1940. 1941. 1942. 1943. 1944. 1945. 1946. 1947. 1948. 1949. 1950. 1951. 1952. 1953. 1954. A n n u a l instalments to be paid on account of P^ . TK^i. T\ • u n xj 15th December—Gontd. principal. 1955 123,000 23,000 1956. 24,000 1957. 25,000 1958. 25,000 1959. 27,000 1960. 27,000 1961. 28, 000 1962. 28,000 1963. 30,000 1964. 32,000 1965. 32,000 1966. 32,000 1967. 32,000 1968. 37,000 1969..... 37,000 1970. 37,000 1971. 42,000 1972. 42,000 1973. 42,000 1974. 42,000 1975 46,000 1976 46,000 1977 46, 000 1978 51,000 1979 51,000 1980. 51,000 1981 53, 000 1982 55,000 1983..: 57,000 1984 60,000 64, 000 Total A n n u a l instalments to be paid ^^ account of principal. 164,000 64,000 67,000 70, 000 72,000. 74,000 78,000 78,000 83,000 85,000 89,000 94,000 ' 96,000 100,000 105,000 110, 000 114,000 119,000 123,000 127,000 132,000 136,000 141,000 146,000 151,000 156,000 162,000 167,000 175,000 175,000 !... 4, 600,000 Provided, however. That Great Britain may, at its option, upon not less than ninety days' advance notice, postpone any payment of principal falling due, as hereinabove provided, to any subsequent 15th June or 15th December, not more than two years distant from its-due date, but only on condition that if Great Britain shall at any time exercise this option as to any payment of principal, the payment falling due in the next succeeding year cannot be postponed to an^;^ date more than one year* distant from the date when it becomes due SECRETARY OF THE TREASURY. 269 unless and until the payment previously postponed shall actually have been made, and tne payment falling due in the second succeeding year cannot be postponed at all unless and until the payraent of principal due two years previous thereto shall actually have been made. This bond may be paid on any interest date before maturity in whole or in part, in amounts of $1,000,000, or multiples thereof, at the option of Great Britain, on not less than ninety days' advance notice.. This bond is issued by Great Britain pursuant to the proposal, dated the 18th day of June, 1923, and to the Acceptance of proposal, dated the 19th day of June, 1923. In Witness Whereof, Great Britain has caused this bond to be executed in its behalf by the Counsellor of His Britannic Majesty's E m bassy at Washington, thereunto duly authorized. For the United Kingdom: Dated 15th December, 1922. (Back.) The following amounts have been paid upon the principal amount of this bond: Date. Amount paid. ACCEPTANCE. J U N E 19, 1923. The Right Honorable, Sir AUCKLAND GEDDES, G . C. M . G., K . C. B . , Ambassador Extraordinary and Plenipotentiary, The British Embassy, Washington, D. C M Y DEAR M R . AMBASSADOR: I have the honor to acknowledge the receipt of your note of June 18, 1923, transmitting the proposal dated the 18th day of June, 1923, by His Britannic Majesty's Government to the Government of the United States of America regarding the funding of the debt of Great Britain to the United States. This proosal is agreeable to the World War Foreign Debt Commission, and am writing for the Commission and by its authority to advise you that the proposal is hereby accepted on behalf of the United States of America, pursuant to the authority conferred by the Act of Congress approved February 9, 1922, as amended by the Act of Congress approved February 28, 1923. I n accordance therewith I am writing to ask that the bonds as contemplated thereby may be delivered as soon as possible to the Secretary of the Treasury of the United States, in exchange for the demand obligations amounting to $4,074,818,358.44 now held by him which are otherwise now payable. Very truly yours, f A. W. MELLON, Secretary of the Treasury, and Chairman of the World War Foreign Debt Commission. Approved: W A R R E N G . HARDING, President. J U N E 19, 1923. 270 REPORT ON T H E FINANCES. EXHIBIT 46. L E T T E R FROM THE SECRETARY OF THE T R E A S U R Y , DATED J U N E 19, 1 9 2 3 , T O T H E B R I T I S H A M B A S S A D O R , R E G A R D I N G A C C E P T ANCE OF U N I T E D STATES NOTES AND C E R T I F I C A T E S I S S U E D A F T E R A P R I L 6, 1 9 1 7 , I N P A Y M E N T O F P R I N C I P A L O R I N T E R E S T ON B O N D S I S S U E D B Y G R E A T B R I T A I N U N D E R T H E T E R M S OF THE DEBT SETTLEMENT. J U N E 19, 1923. The Right Honorable Sir AUCKLAND GEDDES, Ambassador Extraordinary and Plenipotentiary, The British Embassy, Washington, D. C. M Y D E A R M R . AMBASSADOR: In connection with the proposal dated the 18th of June, 1923, by His Britannic Majesty's Government to the Government of the United States of America regarding the funding of the debt of Great Britain to the United States, the acceptance of which I am handing you simultaneously herewith, I am writing to say that the World War Foreign Debt Commission has been advised by the Attorney General of the United States that under the terms of the Act of Congress approved February 9, 1922, as amended by the Act of Congress approved February 28, 1923, notes and/or certificates of indebtedness of the United States issued after April 6, 1917, may be received upon the same terms and conditions as bonds of the United States issued after that date in pa^nnent of principal and/or interest on the bonds to be issued by Great Britain under the terms of the agreement for the settlement of the debt. This is like^dse the view of the World War Foreign Debt Commission, expressed in a resolution duly adopted by the Commission, and the Treasury will, therefore, be guided accordingly in acting under the agreement, and will accept notes and/or certificates of indebtedness of the United States issued after April 6, 1917, on the same terms and conditions as bonds of the United States issued after that date will be accepted thereunder. Very truly yours, (Sgd.) A. W. MELLON, Secretary of the Treasury, and Chairman of the World War Foreign Debt Commission. Approved: (Signed) WARREN G . HARDING, President. J U N E 19, 1923. SECRETARY OF THE TREASURY. EXHIBIT 271 47. LETTER FROM THE SECRETARY OF THE TREASURY, DATED JUNE 19, 1923, TO THE BRITISH AMBASSADOR REGARDING THE DEPOSIT BY GREAT BRITAIN OF THE SO-CALLED SUBROGATED S E C U R I T I E S D E S C R I B E D I N L E T T E R B Y S I R S. H A R D M A N L E V E R . J U N E 19, 1923. The Right Honorable vSir AUCKLAND GEDDES, Ambassador Extraordinary and Plenipotentiary, The British Embassy, Washington, D. C. M Y D E A R M R . AMBASSADOR: In connection with the proposal dated the 18th of June, 1923, by His Britannic Majesty's Government to the Government of the United States of America regarding the funding of the debt of Great Britain to the United States, the acceptance of which I am handing you simultaneously herewith, I am writing to say that in accordance with the understanding reached at the time of the agreement for the settlement of the debt the United States Treasury will not require the deposit by Great Britain of any of the so-called subrogated securities described in the letter dated July 8, 1919, from Sir S. Hardman Lever to Mr. Albert R a t h bone, then Assistant Secretary of the Treasury, or any securities which from time to time may have been substituted therefor. I am, my dear Mr. Ambassador, Very truly yours, (Sgd.) A. W. MELLON, Secretary of the Treasury, and Chairman of the World War Foreign Debt Commission. Approved: (Signed) W A R R E N G . HARDING, President. J U N E 19, 1923. EXHIBIT 48. [Department Circular .No. 108, revised.. Public Debt.] REGULATIONS WITH RESPECT TO UNITED STATES WAR-SAVINGS CERTIFICATES. TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, Washington, August 1, 1923. To Holders of War-Savings Certificates and Others Concerned: Treasury Department Circular No. 108, dated January 21, 1918, as revised November 9, 1922, is hereby amended to read as follows: The following Treasury Department regulations further define the rights of holders of War-Savings Certificates (other than Treasury Savings Certificates) issued under authority of the act approved September 24, 1917, as amended and supplemented, and determine the terms and conditions upon which such certificates will be payable in case of the death or disability of the owner. For regulations further defining the rights of holders of Treasury Savings Certificates issued 272 REPORT ON T H E FINANCES. under authority of the act approved September 24, 1917, as amended and supplemented, reference is made to Treasury Department Circular No. 149, as revised August 1, 1922.. CERTIFICATES NOT TRANSFERABLE. War-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. IL REGISTRATION. War-Savings Certificates may be registered at any post office of the first, second, or third class, and at certain post offices of the'fourth class, subject to such regulations as the Postmaster General may prescribe. Unless registered, the United States will not be liable if payment be made to a person not the rightful owner. III. CERTIFICATES NOT PRESENTED AT MATURITY. War-Savings Certificates shall not bear interest after maturity. IV. LOST, STOLEN, OR DESTROYED CERTIFICATES. A War-Savings Certificate which has been lost, stolen, or destroyed will not be paid nor will a duplicate thereof be issued, unless the certificate has been registered in accordance, loith the regulations and instructions issued by tlie Postmaster General. In the event of the loss, theft, or destruction of a War-Savings Certificate duly issued and registered in accordance, wi^h the regulations and instructions governing issue and registration, the registered owner may apply to the Eost office where the certificate was registered, on Form W. S. 3353, ereto 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 vSecretary 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 authorize payment of the original certificate, but no duplicate certificate win be issued after maturity of the original. Every duplicate certificate shall be marked ^^ duplicate," and shall bear a notation as to the number of registered stamps affixed to the original certificate, but shall itself be issued under a new serial number and will receive a new registration number, with proper notations of registration. Appropriate notation of the issue of the duplicate certificate or payment of the original certificate will be made on the registration records pertaining to the original certificate. 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 SECRETARY OF THE TREASURY. 273 surety or sureties, against any claim that may thereafter arise on account of the original certificate or the granting of relief thereon. The duplicate certificate when issued shall stand for all purposes in the place and stead of the original 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 post office of registration for cancellation. V. Payment of registered or unregistered War-Savings Certificates shall be made to the owner named thereon, notwithstanding any lien, attachment, trustee process, garnishment, judgment, receivership, levy, execution, order, decree, or similar process of law, equity, or in bankruptcy directed against the owner thereof, but nothing herein contained shall excuse the owner from full compliance with, or performance of, any lawful judgment, order, or decree of a court of competent jurisdiction with reference to disposition of the proceeds of the certificates. Collection of the certificate by the owner pursuant to any such judgment, order, or decree will be deemed a payment received on behalf of the owner and not for any other person within the. language of the receipt printed on the certificate, notwithstanding that the owner is, by such judgment, order, or decree, required to pay the proceeds to another person.' Neither the United States of America nor any officer or employee thereof shall be a proper or necessary party to any suit or action with reference to such certificates or the proceeds thereof or be bound by an}^ judgment, order, or decree rendered or entered therein. VI. HOLDING OF WAR-SAVINGS CERTIFICATES BY CORPORATIONS, UNINCORPORATED ASSOCIATIONS, PARTNERSHIPS, AND JOINT STOCK COMPANIES. 1. War-Savings Certificates may be issued in the name of a corporation, unincorporated association, partnership, or joint stock company, and may be registered by any such holder. Certificates so issued 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. 2. Payment of a certificate registered in the name of a corporation, association, or joint stock company shall be made to any officer or agent designated on the registration card to receive payment, provided the postmaster is satisfied as to his identity and the continued existence of his authority to receive payment; or to any other officer or agent presenting proof satisfactory to the Secretary of the Treasury of his authority to receive payment. In general, such proof should consist of an extract from the by-laws or records of the corporation, association, or joint stock company, under its seal, if it has a seal, and certified by the secretary or other officer having custody of the records, showing the name and authority o^ the officer or agent to 274 REPORT ON T H E FINANCES. receive payment and receipt for the certificate. The certification must be executed by some officer other than the one designated to receive payment; if the corporation, association, or company has no seal, a statement to that effect should be furnished, and the certification should be sworn to before a notary public or other officer qualified to administer oaths. 3. Payment of a certificate registered in the name of a partnership shall be made to any member of the firm, or any agent designated on the registration card to receive payment, provided the postmaster is satisfied as to his identity and the continued existence of his authority to receive payment; or to any agent presenting proof satisfactory to the Secretary of the Treasury of his authority to receive payment in behalf of the partnership, such proof to be in the form of a duly executed power of attorney sighed by all the members of the firm. VII. FIDUCIARIES. Certificates shall not be issued or registered in the name of a fiduciary in his representative capacity. Should any such certificate be issued or registered, it will be deemed to be held by the person named thereon in his individual capacity, and all words of description or of representative capacity shall be disregarded. VIII. WAR-SAVINGS CERTIFICATES ISSUED TO TWO PERSONS. War-Savings Certificates may be issued and registered in the names of two persons (but not more than two) in the alternative, in substantially the form ^^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 inscription in the names of two persons is authorized, except to the extent permitted by Section X I oi this circular. When certificates are issued in the alternative, the names and addresses of both persons shall be inscribed thereon and if the certfficates are presented for registration both persons named thereon shall fill out registration cards. In determining whether the $5,000 (maturity value) limitation on the holdings of a single person has been exceeded, the full maturity value of War-Savings Certificates and Treasury Savings Certificates of any series held with any other person shall be added to the full maturity value of certfficates of the same series held individually, and the sum must not exceed $5,000 (maturity value). IX. INFANT HOLDERS OF WAR-SAVINGS CERTIFICATES. 1. War-Savings Certificates may be issued in the name of an infant, and, if the infant is capable of filling out and signing a registration card, may be registered by such infant. SECRETARY OF THE TREASURY. 275 2. A War-Savings Certfficate held by an infant who is incapable of filling out and signing a registration card may be registered in the name of such infant by one of his parents or his duly appointed guardian or the person with whom he resides, the name of the infant to be signed by the representative, as, for instance, '^Mary Smith by John Smith, her father." 3. If a guardian of the property has, to the knowledge of the postmaster from whom payment is demanded, been appointed for an infant owner of a War-Savings Certificate, payment of the certificate, whether registered or unregistered, will be made only to such guardian, upon presentation of proof satisfactory to the postmaster of his appointment and qualffication. In general, such proof should consist ol a certificate of the proper court or a certified copy of the order of the court appointing such guardian, showing the appointment and qualification of the guardian, and that such appointment is still in full force and effect. In each case, the certificate oi the court or the certification of the order should be dated not more than one year prior to the date of the presentation of the War-Savings Certificate for payment. 4. If no guardian of the property has, to the knowledge of the postmaster, been appointed for an infant owner of a War-Savings Certificate, whether registered or unregistered, 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 postmaster, to sign his name to the receipt and to comprehend the nature thereof. Tn the event that such infant is not, in the opinion of the postmaster, 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 the infant resides. The representative should make application on Form W. S. 3359, hereto annexed, and in signing the receipt on the certificate should sign the infant's name as well as his own name as representative. 5. Issuance of a duplicate for, or payment of, a lost, stolen, or destroyed certificate which has been registered in the nam.e 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 hereof. X. DISABILITY OF HOLDERS OF WAR-SAVINGS CERTIFICATES. 1. Payment of a War-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 of the postmaster from whom payment is demanded, will be made only to such conservator or other legal representative, upon the presentation of proof satisfactory to the postmaster of his appointment and qualification. In general, such proof should consist of a certificate of the proper court or a certified copy of the order of the court appointing such conservator or other 276 REPORT ON THE FINANCES. legal representative, showing the appointment and qualification of such conservator or other legal representative, and that such appointment is still in full force and effect. In each case, the certificate of the court or the certification of the order should be dated not more than one year prior to the date of the presentation of the WarSavings Certificate to the postmaster for payment. 2. Payment of a War-Savings Certificate held by an insane or incompetent person for whose estate no conservator or other legally constituted representative has been appointed, to the knowledge of the postmaster, by any court of competent jurisdiction, may, ii the total holdings of the series presented do not exceed $500 (maturity value), be made, in the discretion of the Secretary of the Treasury, to the person contributing to the support of such person, or, if there be no such contribution, to the nearest living relative dependent, under the law, upon the insane or incompetent person for support, upon presentation of a satisfactory application on Form W. S. 3359, hereto annexed, appropriately modified to meet the conditions of the case and accompanied either by a certificate of the superintendent or other person in charge of the institution, if any, to which the insane or incompetent person has been committed, or by a certified copy of the order of commitment, if there is such an order, establishing the fact that the owner is an inmate of such institution, legally committed, and incompetent to handle his own affairs. In the absence of such proof, a certificate from the attending physician, setting forth the facts, should accompany the application. 3. Payment of a War-Savings Certificate held by a person not incompetent to manage his affairs, who, by reason of infirmity or for other reasons satisfactory to the postmaster from whom payment is demanded, can not appear in person to demand payment of his certificate, may be made to a representative upon written authorization executed by the owner of the certificate, on Form W. S. 3357, hereto annexed. 4. Payment of a registered War-Savings Certificate held b}^- a person who is unable to iappear personally at the office of registration to receive pa5rment, and who does not elect to authorize some person to receive payment in his behalf as prescribed in the foregoing paragraph, may be made by mail upon surrender of the certificates to the local post office for transmission to the postmaster at the office of registration. The certificates should be receipted by the registered owner and accompanied by proper application, in duplicate, on Form W. S. 3371, hereto annexed. Payment of certificates thus surrendered will be made by mail in accordance with the regulations of the Post Office Department. 5. Payment of War-Savings Certificates held by persons under any other disability shall be made only to the holders of the certificates, except as provided in Section I X hereof. XL REGISTRATION OF WAR-SAVINGS CERTIFICATES IN FAVOR OF B E N E FICIARY. 1. War-Savings Certificates may be registered payable to a single designated beneficiary in case of death of the registered owner, as, for instance, ^^John Smith, payable on death to Mary Smith." In SECRETARY OF THE TREASURY. 277 that event the postmaster shall at the time of registration inscribe across the face of the certificate and on the registration card the words :^^ Payable on death to ," inserting the name and address of the beneficiary and having the owner of the certificate sign his name under such designation. The signature of the owner on both the certificate and registration card must, be witnessed by a disinterested person who knows both the owner and the beneficiary. Such certificate will be payable to the registered owner dming 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 or to payment of the certificate, at his option, upon application on Form W. S. 3360, 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 such reissue the beneficiar}^ will not hold War-Savings Certificates and Treasury Savings Certificates of the series in question to an aggregate amount exceeding $5,000 (maturity value). If the beneficiary shall predecease the registered owner, the certificate will be payable to the owner as though registration in favor of a beneficiary had not been made. Second registration in favor of another beneficiary, or change of beneficiary, will not be permitted. 2. Such a certificate may also be registered by the beneficiary upon the beneficiary's signing a registration card and complying with the other requirements for registration of the certificate. Unless registered by the beneficiary, the United States will not be liable, in respect of any beneficiary certificate, if payment or reissue upon the death of the owner be made to a person not the true beneficiary thereof. 3. Should the beneficiary die after the death of the registered owner, but before payment or reissue of the certificate, the regulations covering payment or reissue of certificates held by a deceased owner shall govern the payment or reissue of the certificate as though the beneficiary were such deceased owner. 4. The right to designate a beneficiary shall extend only to. registered certificates. XII. PAYMENT OR REISSUE OF WAR-SAVINGS CERTIFICATES DECEASED OWNER. HELD BY In the case of the death of the owner of a War-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 manner hereinafter provided: With administration. 1. If the decedent leave a will which is duly admitted to probate, or die intestate and the estate of such decedent is administered in a court of competent jurisdiction, payment of such certificate will be made only to the duly appointed representative of the estate, and reissue will be made only at his request. Such application must be supported by a certificate of the proper court evidencing his appointment or by a certified copy of the letters testamentary or letters of 278 REPORT ON T H E FINANCES. administration issued upon the estate and dated not more than one year prior to the date oi presentation at the post office for payment. If the appointment has been in effect more than one year, a certfficate of the proper court dated not more than ninety days prior to the date when presented at the post office must be submitted showing such appointment to be in full force and effect. If the estate has been fully administered and the legal representative discharged, there should be submitted a certffied copy of the final decree of distribution, specffically distributing the War-Savings Certfficates to the applicant, or a certificate of the court showing w^ho is entitled to the certfficates. If the beneficiaries of the estate are mentioned in the final decree of distribution but the War-Savings Certificates are not specifically distributed to any beneficiary, the Secretary of the Treasury will authorize pa3^ment to any one or more of the beneficiaries upon presentation of an agreement by all the beneficiaries, consenting to such payment, duly executed and acknowledged by each beneficiary before a notary public or similar officer, whose seal must be affixed. If a trustee has been appointed, there should be submitted appropriate evidence showing the appointment and qualification of such trustee and that the War-Savings Certificates form a part of the trust estate. 2. Administration will be required prior to payment or reissue of a War-Savings Certfficate in all cases where the gross personal estate of the deceased owner exceeds $500 in value, unless 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. Without administration. 3. 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 creditors for the reasonable funeral expenses, expenses of the last illness, or other preferred claims against the decedent's estate, or persons paying such creditors, to the extent of such preferred claims. If application is made by a creditor. Form W. S. 3361, hereto annexed, should be used, and if made by the person paying such creditor. Form W. S. 3363, also annexed hereto, should be used. 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 on Form W. S. 3363, hereto annexed^ SECRETARY OF THE TREASURY. 279 4. In case the gross personal estate of the decedent exceeds $500 in value, and it is claimed that administration of the estate is not required in the State of the decedent's domicile, the application for payment or reissue of the War-Savings Certificates owned by the decedent must be accompanied by an agreement by all of the legal heirs of the decedent who are of lawful age and competent and by the legally appomted 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 has not been had and will not be applied for, and, further, that such administration 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 War-Savings Certificates being made to the claimant who executes the application. Such agreement must also be accompanied by the affidavits of two disinterested persons, preferably public officers of the United States or executive officers 01 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 certfficate 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. XIIL REISSUE. 1. A War-Savings Certificate registered payable to a single desig-" nated beneficiary in case of the 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. 2. A War-Savings Certificate, whether registered or unregistered,^ held by a deceased owner, may be reissued to the person entitled to receive payment ia accordance with the provisions of Section X I I hereof, provided, however, an application by an executor or administrator for reissue to himself individually m u s t be supported by a . certified copy of an order or decree of the court having jurisdiction, specifically authorizing such reissue. 3. In case of the reissue of a War-Saviags Certfficate pursuant to the provisions of Sections X I or X I I hereof, the original certificate will be retired and a new certfficate of the same series with the same aggregate number of stamps affixed, but bearing a new serial number and inscribed in the name of the person entitled to^ reissue of the original certificate, will be issued. Reissue of certificates may be effected only at the Treasury Department, Division of Loans and Currency, Washmgton, D. C , on application duly executed by the person entitled to demand reissue of the certificate on the form pre- 280 REPORT ON T H E FINANCES. scribed for such purpose. Registered certfficates must, however, be presented through the post office of registration. If it is desired that the reissued certificates be registered, it will be necessary to present them, for this purpose, at a post office authorized by the Postmaster General to register War-Savings Certificates. 4. In no case will a War-Savings Certificate be reissued in the name of any person if upon such reissue such person will hold War-Savings Certificates and Treasury Savings Certificates of the series in question to an aggregate amount exceeding $5,000 (maturity value). XIV. SIGNING RECEIPT. Whenever, pursuant to these regulations, pajrment or reissue of a certificate is made to a person not the original owner thereof, the receipt printed on the certificate need not be signed, but such person shall sign a receipt. Form W. S. 3365, which shall be pasted on the certificate over the receipt printed thereon, as follows: FORM W . S. 3365. RECEIVED | in payment hereof. I hereby certify that I am the identical person entitled to payment or reissue of this certificate under the regulations prescribed by the Secretary of the Treasury, in lieu of the original owner named above, and that said original owner (or his estate) does not hold, and, in case of reissue to me, I will not hold, War-Savings Certificates, or Treasury Savings Certificates of any one series, of whatever issue or denomination, to an aggregate amount exceeding Five Thousand Dollars (maturity value). (Date.) ' (Signature of payee.) XV. INHERITANCE TAXES. Payment or reissue of War-Savings Certificates held by a deceased owner will be made without any deduction for inheritance, estate, •or transfer taxes, either State or Federal; and no claim shall lie against the United States or any officer or employee thereof for failure to deduct or withhold any such tax. The person to whom payment or reissue of the certificates is made shall be liable for aU such taxes, if any shall be due, and the lien thereof shall attach to the proceeds of the certificates in his hands. XVI. CHANGE OF NAME. In case the name of the owner of a War-Savings Certificate has, since the issuance of the certfficate, been changed by marriage or by order or decree of court, the postmaster, upon being satisfied of the identity of the person, will accept the owner's receipt, provided both the new and the original names are signed. SECRETARY OF THE TREASURY. 281 XVII. 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 any one time to hold War-Savings Certificates and Treasury Savings Certificates of any one series (of whatever issue or denomination) to an aggregate amount exceeding $5,000 (maturity value). As to each series, the issue of War-Savings Certificates and the issue of Treasury Savings Certificates are included within the same series for the purpose of determining whether the limitation on the holdings of any one person has been exceeded. For further regulations governing holdings of War-Savings Certificates and Treasury Savings Certificates in excess of the legal limit, see Treasury Department Circular No. 17S, dated January 15, 1920, as amended and supplemented. XVIIL ADMINISTRATION. 1. The administration of the foregoing regulations shall be in accordance with such forms and administrative regulations and instructions, and through such assistants or subordinates, as the Postmaster General shall from time to time prescribe, and in accordance with regulations issued or to be issued by the Secretary of the Treasury. 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 War-Savings Certificates issued pursuant to the act of Congress approved September 24, 1917, as amended and supplemented. • A. W. MELLON, Secretary of the ^Treasury. 282 REPORT ON THE FINANCES. Form W. S. 3353. POST OFFICE DEPARTMENT THIRD ASSISTANT POSTMASTER G E N E R A L DIVISION OF STAMPS APPLICATION FOR THE ISSUE OF DUPLICATES FOR OR THE PAYMENT OF LOST, STOLEN, OR DESTROYED REGISTERED WAR-SAVINGS CERTIFICATES. STATE OF COUNTY OF , being first duly sworn, deposes and says: (Name of applicant.) (A.) In the following table I state the known facts concerning all War-Savings Certificates owned by me and registered at the , (Name of post office.) , post office, showing which ones are lost, stolen, destroyed, or (State.) mutilated, and which ones (if any) are still in my possession: (Serial numbers and registration numbers of any registered certificates still in the claimant's possession must be given; if serial numbers or registration numbers of lost, stolen, or destroyed certificates are not known, the claimant should so state.) The following are lost, stolen, destroyed, or mutilated— i>eries of (year)— Serial number of certificate. Registration No. Number of registered stamps affixed. The following are still in my possession- Series of (year)— Serial number of certificate. Number regisRegistra- oftered tion No. stamps affixed. The certificates so listed were lost, stolen, destroyed, or mutilated in the following manner, on or about , 192 1. Where were the certificates last placed or seen, and by whom? 2. Were they under lock and key? 3. Were they accessible to persons other than the owner, and if so, to whom? (See iragraph 2, on back of this form.) parai 4. If stolen, what is known as to the identity of the thief? 5. What steps have been taken to recover the certificates? 6. If lost, or destroyed, how is the fact of such loss or destruction known? 7. Has any portion of the certificates been recovered? If so, state the facts. paragraph 3, on the back of this form.) (See 8. If lost, has thorough search been made for them and has the loss been advertised? 9. If stolen, have the police been notified? If so, state the result SECRETARY OF THE TREASURY. 283 10. State any other material facts or circumstances concerning the loss, theft, or destruction of the certificates — (B.) That the following facts were recorded on the application to register the certificates: • V Applicant's address at that time Date of birth (Number.) (Month.) (Day.) (Year.) (Street.) Nationality (Post office.) (State.) Married or single Occupation By whom then employed Parents' names and I have not sold or otherwise disposed of said certificates or stamps in any manner. I desire the above-described certificates. ("Payment of" or "Duplicate for.") If any of the above-described certificates are recovered I agree immediately to notify the postmaster at the post office where such certificates are registered of such recovery, and if payment is made or a duplicate certificate issued for any such certificate, before the recovery thereof, I agree to surrender immediately such certificate so recovered to the postmaster at the post office where such certificate is registered. I do not hold United States War-Savings Certificates or Treasury Savings Certificates, separately or combined, of any one series, to an aggregate amount in excess of $5,000 (maturity value). Witness (A witness is not required unless applicant signs by X mark.) (Signature of appUcant.) Address Address (Number.) (City.) Subscribed and sworn to before me this (Street.) (State.) day of , 192 [OFFICIAL SEAL.] My commission expires Notary Public. , 192 This application 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 acknowledgment. (The postmaster at the office of registration, if satisfied of the identity of the apphcant as the registered owner, will complete and sign the form below, and send the application with the registration cards for the lost, stolen, or destroyed certificates to the Third Assistant Postmaster General, Division of Stamps, by registered mail.) THIRD ASSISTANT POSTMASTER GENERAL, • Division of Stamps. registration cards (Form WS-110) bearing the I transmit herewith (How many.) official record of the registration of the War-Savings Certificates described in the foregoing appHcation as lost, stolen, or destroj'^ed. I certify that the entries on the backs of said cards indicate the registration of a total of War-Savings (How many.) Certificate Stamps, Series of 19 by ; and that the foregoing application was signed , who, I am satisfied, is the registered owner. (Name of applicant.) (Signature of postmaster.) (Date.) (Post office.) INFORMATION (State.) AND INSTRUCTIONS. 1. Paragraph IV of Treasury Department Circular No. 108, Revised, dated August 1, 1923, provides as follows: ''A War-Savings Certificate which has been lost, stolen, or destroyed will not be paid nor will a duplicate thereof be issued, unless the certificate has been registered in accordance with the regulations and instructions issued by the Postmaster General. In the event of the loss, theft, or destruction of a War-Savings Certificate duly issued 62166—FI 1923 20 284 REPORT ON THE FINANCES. and registered in accordance with the regulations and instructions governing issue and registration, the registered owner may apply to the post office where the certificate was registered, on Form W. S. 3353, 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 authorize payment of the original certificate, but no duplicate certificate will be issued after maturity of the original. Every duplicate certijScate shall be marked "duplicate," and shall bear a notation as to the number of registered stamps affixed to the original certificate, but shall itself be issued under a new serial number and will receive a new registration number, with proper notations of registration. Appropriate notation of the issue of the duplicate certificate or payment of the original certificate ,will be made on the registration records pertaining to the original certificate. 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 arise on account of the original certificate or the granting of relief thereon. The duplicate certificate when issued shall stand for all purposes in the place and stead of the original 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 post office of registration for cancellation." 2. The attached application should state fully every material fact and circumstance as to the loss, theft, or destruction of the certificates. If there is not sufficient space on the attached form, a supplementary affidavit shotild be executed and presented with this application, or a supplementary statement made and attached, and incorporated by express reference. In case the certificates were accessible to any person other than the applicant 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 application should state why such affidavits are not presented. 3. If any portions of the certificates remain, they should be carefully packed and forwarded with this application. 4. In case application is made for payment of certificates registered in the name of an infant, the postmaster at the post office of registration must submit with this application a signed statement showing whether to his knowledge a guardian of the property of the infant has been appointed and whether the infant, is in his opinion, of sufficient competency and understanding to receive payment for these certificates. If the infant is not of such competency and understanding, in the opinion of the postmaster, an application by the parent or other person with whom the infant resides should be made on Form W. S. 3359 and filed mth this application. 5. This application must be filed with the postmaster at the post office where the certificates were registered, who will, if satisfied as to the facts, execute the certificate contained herein and forward the application to the Third Assistant Postmaster General, Division of Stamps, together with the registration cards (Form WS-110) bearing the official record of the certificates described in the application as lost, stolen, or.destroyed. All correspondence referring to this claim should be conducted through the post office where the certificates were registered. 6. If the certificates are recovered subsequent to the filing of this application, the postmaster at the post office where the certificates were registered must be immediately notified in writing signed by the applicant. 285 SECRETARY OF THE TREASURY. Form W. S. 3357. POST. OFFICE DEPARTMENT THIRD ASSISTANT POSTMASTER GENERAL DIVISION O F STAMPS AUTHORIZATION TO POSTMASTER TO MAKE PAYMENT OF WAR-SAVINGS CERTIFICATES TO P E R S O N OTHER THAN OWNER. (To be used only where the owner of the certificates, by reason of infirmity or other sufficient cause, is unable personally to appear.) .,192 (Date.) NOTE.—The receipt form on the certificate should, wherever practicable, be signed by the owner.. P O S T M A S T E R AT (Name of office where certificates are registered; if not registered, then any money-order office.) I am the original owner of the following-described War-Savings Certificates submitted herewith: Serial number of certificate. Registration number of certificate (if registered). Series of— Number of stamps attached. Registration number of certificate (if registered). Serial number of certificate. 19 19 19 Series of— Number of stamps attached. 19 19 19 The certificates have been duly receipted by me, and I authorize payment to (Name and address of authorized representative.) The reason that of the amount which I am entitled to receive on said certificates I can not appear in person is: If certificates are registered, fill out the following blanks: The following facts were recorded on the application to register the certificates: Applicant's address at that time (Number.) Date of birth (Street.) (Post office.) (State.) Nationality (Month.) (Day.) Married or single By whom then employed Parents' names (Year.) and Occupation " Witness ; (A witness is not required unless owner signs by X mark.) Address (Signature or X mark of owner.) Address (Number.) (Town or city.) RECEIVED Dollars (Street.) (State.) Cents from the Postmaster of the office named above, in payment of the full amount due on United States War-Savings Certificates, Numbers described above. Date , 192 (Signature of authorized representative.) 286 REPORT ON T H E FINANCES. Form W. S. 3359. POST OFFICE DEPARTMENT THIRD ASSISTANT POSTMASTER G E N E R A L DIVISION OP STAMPS 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 O F W A R - S A V I N G S CERTIFICATES H E L D BY AN INFANT. 1 hereby certify that I am the (Father, mother, or person with whom infant resides.) of :age, and resides at , who is an infant, , with (Number.) (Street.) (Town or city.) years of (State.) Said infant owns the following War-Savings Certificates: Serial No. Series of (year). If registered, at what post office. Registration No. Serial No. Series of (year). If registered, at what post office. Registration No. Said infant is not of sufficient competency and understanding to sign his name to the receipt printed on said certificates and to understand the nature thereof, and by reason of that fact I hereby apply for payment of said certificates to me on behalf of said infant. Said infant does not hold War-Savings Certificates or Treasury 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 by any court or otherwise. If any certificate is registered, fill out the following blanks: Infant's nationality is Infant's date of birth is Names of infant's parents are and The infant's certificates were registered by { (Name.) Witness (A witness is not required imless applicant signs by X mark.) Address ' (Signature or X mark of applicant.) Address (Number.) (Street.) (Town or city.) CERTIFICATE (State.) OF POSTMASTER. I h e r e b y certify t h a t i n m y o p i n i o n t h e s a i d (Name of infant.) is not of sufficient competency and understanding to sign the receipt printed on the said certificates and to comprehend the nature thereof, and that to the best of my knowledge and belief the statements set forth in the above application are true. Dated ,192 Post Office Postmaster. SECRETARY OF T H E TREASURY. 287 Form W. S. 3360 POST OFFICE DEPARTMENT THIRD A S S I S T A N T POSTMASTER GENERAL D I V I S I O N OP STAMPS APPLICATION BY BENEFICIARY FOR PAYMENT OR R E I S S U E OF A. REGISTERED WAR-SAVINGS CERTIFICATE. STATE OF 1' >ss: J COUNTY OF , being first duly sworn, deposes and saysr (Name of apphcant.) I reside at , and am the identical person/ (Number.) (Street.) (Place.) designated on War-Savings Certificate No as beneficiary thereof (Serial number.)^ in case of death of the registered owner. Registration of said certificate was made at Post Office, State of , registration number (Place.) . .• . (Name of registered owner.) . (State.) (Place of death.) , 19 was ^ , and the registered owner thereof was , who died at on The decedent's residence at the date of his death (Date of death.) (Number.) (Street.) (Place.) To the best of my knowledge and belief the occupation of decedent was : the decedent was born ; the decedent (Date of birth.) was - ; the nationality of decedent was (Married or single.) ; and the names of decedent's parents were and The witness to the designation of applicant as beneficiary of said certificate was The affidavit of the witness is hereto attached. (If affidavit of witness is not obtainable, strike out and state why not obtainable.) Hereto attached is a certificate of death of said registered owner, issued by the public authorities of the place of death. (Strike out if no public certificate is issued in the community and see that the affidavit of death on the reverse hereof is properly executed.) I am the person entitled to payment or reissue of the above-described certificate and hereby demand that< J5^?^^^ lof said certificate be made to me. The decedent's (^reissue j (Strike out method not desired.) estate does not hold, and in case of such reissuance I shall not hold, War-Savings Certificates or Treasury Savings Certificates of any one series, of whatever issue or denomination, to an aggregate amount exceeding |5,000, maturity value, and I do not know of any other person claiming to be entitled to payment of said certificate as the beneficiary thereof. If certificate is registered by the beneficiary, fill out the following blanks: Applicant's occupation is ^ Applicant's date of birth is Applicant is „. (Married or single.) Applicant's nationality is '. Names of applicant's parents are Witness and (A witness is not required unless applicant signs by X mark.) Address (Signature or X mark of applicant..) Address (Number.) (City.) Subscribed and sworn to before me this ,19 day of [ O F F I C I A L SEAL.] My commission expires (Street.) (State.) , ,19 Notary Public. 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 acknowledgment. It should not be executed before the postmaster or any of his subordinates. "288 REPORT ON T H E FINANCES. A F F I D A V I T OP WITNESS TO CERTIFICATE. STATE OF COUNTY OF 1 --j , being first duly sworn, deposes and says: (Name.) I was acquainted with ^ , now deceased, who (Name of owner.) was the owner of the War-Savings Certificate, paj^ment of which is demanded by I knew the- deceased owner for (Applicant.) years, and know that h e is dead. I have known (Applicant.) for . years, and know that h e is t h e identical person designated on the War-Savings Certificate above mentioned as the person to whom said certificate was payable on t h e death of the owner. I saw the said owner sign t h e designation of said fipphcant on the certificate and on t h e registration card, and thereupon I signed m y mame as a witness thereto. I have no interest, directly or indirectly, in t h e payment of said War-Savings Certificates. Witness (A witness is not required unless affiant signs by X mark.) Address (Signature or X mark.) Address (Number.) (Street.) (City.) Subscribed and sworn to before me this (State.) day of , 19 [OFFICIAL SEAL] Notary Public. My commission expires ,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 j j * Personally appeared before me and , residents of t h e of . . . , , county of State of , who, being first severally sworn, declare, each for himself, that they were acquainted with , (Name of owner.) now deceased, who was.the owner of War-Savings Certificates, payment of which is demanded by ; that they knew the deceased owner for years before his death, and know of their own knowledge that said deceased owner died on t h e da}^ of , 19...., at That to the best of the deponents' knowledge and belief t h e occupation of decedent was ; that decedent was born . . . ' . ; that decedent was ; (Date of birth.) that t h e nationality of decedent was of decedent's parents were (Married or single.) ; that t h e names and , and further, that they have no interest, directly or indirectly, in this claim. (Signature.) (Address.) (Signature.) (Address.) Subscribed and sworn to before me this 19.... day of [OFFICIAL SEAL.] My commission expires Notary Public. , 19 The foregoing affidavits 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 oxk the date of the acknowledgment. 289 SECRETARY OF THE TREASURY. Form W . S . 3361. POST OFFICE DEPARTMENT THIRD ASSISTANT POSTMASTER G E N E R A L DIVISION OP STAMPS APPLICATION BY UNDERTAKER, DOCTOR, OR O T H E R P R E F E R R E D CREDITOR FOR PAYMENT OF W A R - S A V I N G S CERTIFICATES. This appUcation should not be executed if letters of administration or letters testamentary have been issued upon the estate of the deceased, in which event certified copies of such letters, or a duly executed certificate of appointment of such legal representative, must be forwarded to the Tnird Assistant Postmaster General, Di\dsion of Stamps, Washington, D. C. STATE OF . COUNTY OF ' ' \ss: being first duly sworn, deposes and says: (Name of appUcant.) I am the (Undertaker who buried.) (Doctor, who attended in last illness.) who died intestate a t , (Name of deceased.) (Place of death.) on the day of War-Savings Certificates to the amount of I Series. Serial No. of certificate. ,19 , leaving , as follows: Number of stamps attached. Name and address of owner as they appear on the certificate. Administration of the estate of the deceased has not been asked for or granted, and to the best of affiant^'s knowledge and belief, will not be asked for or granted. The reasonable charge for said services rendered is $ . . . . . , as evidenced by the bill hereto attached. I have (State whether payment has been received in part, and if so the amount thereof.) I hereby make application for the payment of $ from the proceeds of the above-described War-Savings Certificates held by the deceased, to which payment I am entitled under the regulations i)rescribed by the Secretary of the Treasury. Below is a certificate by a near relative of the deceased to the accuracy of this claim. If the certificates are registered, fill out the following: To the best of my knowledge and belief the occupation of decedent was ; the decedent was born ; the decedent was ; (Date of birth.) the nationality of decedent was of decedent's parents were (Married or single.) , ; and the names and (Signature of apphcant.) Address (Number.) (Street.) (Townorcity.) (State.) Subscribed and sworn to before me by the above-named applicant this dayof ....,192 . . [OFFICIAL SEAL] Notary Public. My commission expires , , 19 This application 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 accchipanied by a certificate frpm the proper official, showing that the officer was in commission on the date of the acknowledgment, i t should not, however, be executed before the postmaster or any of his subordinates. A certificate of the accuracy of deponent's claim by a near relative, on the following forin, must be made. 290 REPORT ON T H E FINANCES. C E R T I F I C A T E BY A N E A R R E L A T I V E OF D E C E A S E D AS TO ACCURACY OF CLAIM. PREFERRED ., 192 I hereby certify that the bill submitted by the sum of $ for ., for expenses of (Funeral, medical, or other preferred.) (Name of owner of certificate.) deceased, is correct and just and remains unpaid. To the best of my knowledge and belief decedent did not, at the time of his death, hold War-Sa^dngs Certificates or Treasury Savings Certificates of any one series to an aggregate amount exceeding 15,000 (maturity value). Witness (A witness is not required unless applicant signs by X mark.) (Signature or X mark.) Address (Relationship.) Address (Number.) (Street.) (Townorcity.) (State.) F o r m W . S. 3363 POST OFFICE DEPARTMENT THIRD ASSISTANT POSTMASTER GENERAL DIVISION OF STAMPS APPLICATION FOR PAYMENT OR R E I S S U E OF WAR-SAVINGS C E R TIFICATES H E L D BY DECEASED 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 APPOINTED LEGAL R E P R E S E N T A T I V E OR P R E F E R R E D CREDITOR. IMPORTANT.—Read carefuUy the footnotes to the forms and instructions on page 3 before filling in the blank?; exact compUance will avoid delay and compUcations. STATE OF COUNTY OF ' \ss: ' , being first duly sworn, deposes and says: (Name of apphcant.) I reside at , and am (Residence of apphcant.) of (Relationship to decedent, if any.) , (Name of owner of certificate.) deceased. Said decedent died on the day of , (Date of death.) 19 at and was at the time of death legally domi(Place of death.) ciled at , County of , State of 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.) To the best of my knowledge and belief said decedent was at the time of his death the owner of the following War-Savings Certificates: SERIAL NUMBER OF CERTIFICATE. SERIES OF (YEAR.) NUMBER OF STAMPS AFFIXED. REGISTRATION. (If not registered, so state.) Date of Registration. Post Office of Registration. Registration Number. SECRETARY OF THE TREASURY. 291 Hereto attached is a certificate of death issued by the public authorities. (Strike out if no public 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 | , (If the gross personal estate exceeds S500, the procedure prescribed in paragraph 2 of Instructions must be followed.) 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 fully given in accordance with attached instructions; and if the space provided below is inadequate, additional sheets may. be prepared and made a part of this appUcation.) (Name.) (Relationship.) (Age.) (Address.) (Name.) (Relationship.) (Age.) (Address.) (Name.) (Relationship.) (Age.) (Address.) (Name.) (Relationship.) (Age.) (Address.) (Name.) (Relationship.) (Age.) (Address). I do not know of an}?^ other person who claims to be entitled to payment or reissue of War-Savings Certificates standing in the name of said decedent, except the following: (If none, insert ''None.") If any certificate is registered, fill out the following: To the best of my knowledge and belief the occupation of decedent was ; the decedent was employed by ; I the decedent was born ; the decedent on the date of regis(Date of birth.) \ tration was ; the nationality of decedent was (Married or single.) . . . ; and the names of decedent's parents were (Name of father in full.) .and... (Name of mother in full.) I am the person entitled to payment of the above-described certificates, and hereby make demand for<P^^^,, ithereof to me. Decedent's estate does not hold., and in 1^ reissue J (Strike out method not desired.) case of such reissue I will not hold War-Savings Certificates or Treasury 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.) (Signature or X mark of apphcant.) Address (Number.) (Street.) (Town or City.) Subscribed and sworn to before me this. ,192 '. (State.)' day of [OFFICIAL SEAL.] Notary Public. My commission expires , 192 292 REPORT ON T H E FINANCES. , II, ' AFFIDAVIT OP D E A T H OP D E C E A S E D OWNER. (To be used only when the authorities of the place of death do not issue a death certificate.) STATE O P. STATE OP COUNTY OP 1 ./ Personally appeared before me and of , residents of the , County of State of , who, being first severally sworn, declare each for himself, that they were acquainted with the said decedent, and know t h a t he is deceased; that they know the claimant to be the identical person named in 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 : ,192 (Address.) day of [OFFICIAL SEAL.] Notary Public. My commission expires , 192 N. B.—This apphcation 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 acknowledgment. III. SUPPORTING AFFIDAVITS OF TWO D I S I N T E R E S T E D P E R S O N S . (Required only where the gross personal estate of the decedent exceeds $500 in value and to be executed, if possible, by officers of incorporated banks or trust companies, or by public officers of the United States.) STATE OF COUNTY OF 1 j Personally appeared before me , whose address is , and , whose address is .• , who, being first severally duly sworn, depose and say, each for himself, that their respective occupations or employments are and ; t h a t they have read the foregoing principal affidavit and believe it to be true; that they have known (Name of decedent.) during h lifetime, and h family for years and years, respectively; that they know of their own knowledge that the person executing the foregoing affidavit is actually related to said decedent in the manner therein set forth; t h a t he is a reputable person in the community and, in the judgment of affiants, worthy of belief; and, further, that affiants have no interest, directly or indirectly, in the foregoing application. Subscribed and sworn to before me this day of ,192 (Signature of affiant.) [OFFICIAL S E A L . ] Notary Public. (Signature of affiant.) My commission expires SECRETARY OF THE TREASURY. 293 INSTRUCTIONS. 1. This blank must be used only when there is no administration of the estate in any courts, and claims of all preferred creditors have been paid., 2. Pursuant to Section X I I of Treasury Department Circular No. 108, Revised, dated August X, 1923, in aU cases where the gross personal estate of the deceased owner exceeds $500 in value, administration will be required before payment or reissue of a War-Savings Certificate wiU be made, unless 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. 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 appUcation must be accompanied by an agreement by all the legal heirs of the decedent who are of lawful age and competent, and by the legaUy 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 legaUy appointed representatives; that all debts owing by the decedent have been paid; that administration of the estate of the decedent has not been had and wiU not be appUed for, arid further, that such administration is not required in the State of the decedent's domicile, and that aU such heirs or thenlegal representatives have agreed on the distribution of the estate and consent to payment or reissue of the War-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 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. 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: whether a guardian or guardians have been appointed in case any of such children are minors; and whether decedent left surviving a father or mother, or both, giving all names and addresses. 4. The apphcation should state whether funeral expenses and physician's services during last illhes's have been paid; if so, by whom, and whether from personal fimds 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 must be furnished in the form printed in II. 6. If two or more persons are equally entitled to payment or reissue as next of Idn under the regulations, the appUcation should be executed by such claimants jointly, or should be accompanied by a waiver of all right, title, and interest in the War-Savings Certificates, payment or reissue of which is requested, executed by such persons as do not join in the appUcation. 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. 108, Revised, dated August 1, 1923, issued with instructions to postmasters in Form 3349, and any subsequent regulations in force). 8. The affidavits contained in this appUcation must be acknowledged before a notary pubUc, 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. The date when the officer's commission ex:pires should appear in any event. Oiilj'' one certificate is necessary for each officer, provided the dates of the beginning and expiration of his commission are shown thereon and such period of commission includes the date of acknowledgment of the affidavit. Affidavits acknowledged before a judge or clerk of court and bearing the seal of the court need not be accompanied by any further certification. If in any case there is not sufficient space in the form, a supplementary affidavit should be executed and attached, or a signed supplementary statement attached and incorporated by reference. 9. This application should be presented at the post office at which payment for the War-Sa"vings Certificates is demanded (the post office of registration in the case of registered certificates) and wiU be forwarded by the postmaster to the Third Assistant Postmaster General for reference to the Treasury Department with his recommendation thereon. 294 R E P O R T GIST T H E FINANCES. Form W. S. 3371. POST OFFICE DEPARTMENT THIRD A S S I S T A N T POSTMASTER GENERAL DIVISION OF STAMPS APPLICATION FOR PAYMENT BY M A I L OF SAVINGS CERTIFICATES. REGISTERED WAR- (The owner should complete and sign this form in duplicate in the presence of a postmaster, or of a postoffice clerk authorized for the purpose, who wiU witness the signature and forward one form, with the certificates receipted by the owner, by official registered mail, to the postmaster from whom payment is requested. The other form should be retained by the owner. Only certificates registered at a single post office may be included on one form.) Date To P O S T M A S T E R AT , (Post office where certificates are registered.) I hereby reqtuest payment, ten days after date, of the Certificates registered at your office: Serial number of certificate. Registration number of certificate. Series of- Number of stamps attached. Serial number of certificate. (State.) following Registration number of certificate. 19: 19. . . . 19 19 19 War-Savings Series of— 19 19 19 19 19...... Number of stamps attached. . I transmit the certificates herewith. I request that the amount be forwarded to me by postal money order, less the usual money-order, fee, at the address given below. The following facts were given when I applied to register the above certificates: Address , City , State (Number.) (Street.) Occupation Date of birth By whom employed Married or single Nationality ., (Month.) (Day.) (Year.) Names of parents Witness to X mark: (Signature or (X) mark of apphcant.) Present address VERIFICATION.—The certificates transmitted herewith bear the numbers and stamps above stated, and this application was signed in my presence. (Stamp here with office dating stamp.) (Postmaster or clerk at forwarding office.) Post office The witnessing postmaster or clerk should see that both copies of the form are completely filled in; that the receipt on the face of each war-savings certificate has been signed by the apphcant; and that the number of stamps on each certificate is as stated in the application. The postmaster or clerk should place his signature and date stamp on both copies, the one returned to the apphcant serving as a receipt. SECRETARY OF THE TREASURY. EXHIBIT 295 49. [Department Circular No. 329. PubUc Debt.] U N I T E D STATES OF AMERICA—NEW O F F E R I N G 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 — I S S U E O F D E C E M B E R 1, 1 9 2 3 . TREASURY DEPARTMENT, O F F I C E OF THE SECRETARY, November 15, 1923. NEW OFFERING OF TREASURY SAVINGS CERTIFICATES. 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 1, 1923, an issue of United States War Savings Certificates, to be known as Treasury Savings Certificates and to be dated December 1, 1923. Pursuant to the provisions of Treasury Department Circular No. 301, dated September 30, 1922, Treasury Savings Certificates, Issue of September 30,1922, offered thereunder, are hereby withdrawn from sale at the close of business November 30, 1923, and thereafter such certificates will not be issued for cash or in exchange, except as hereinafter provided for exchange of denominations. Tne Treasury Savings Certificates issued within any one calendar year shall constitute a separate series, under the serial designation of the year of issue. Treasury Savings Certificates, Issue of September 30, 1922, issued during the calendar year 1923, and Treasury Savings Certificates which may be issued hereunder during the remaiinder of the calendar year 1923, constitute the Series of 1923 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 United 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). 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 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 execiuted in the same manner by the issuing agent, and shall be detached and forwarded in the manner directed in paragraphs 8 and 9 hereof. The registration stubs will remain at the Treasury Department at Washington and will constitute the basis for the Department's record of the registered ownership of the certificates. In addition to the registration stub above described, each certificate will be provided with an additional or duplicate stub, which shall be executed at the same time and in the same manner as the original registration stub and retained by issuing post oflSces 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 eacih case, and will be redeemable before maturity at the option of the owner. 296 REPORT ON T H E FINANCES. 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, compounded semiannually, if redeemed before maturity. The certificates will not be transferable, and v/ill 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, dated August 1, 1922.) The certificates will not be valid unless the owner's name and . address and the date of issue are duly inscribed thereon by an authorized agent at the time of issue. Treasury Sp4.vings Certificates issued hereunder will bear the facsimile signature of the Secretary of the Treasury. 3. Issue prices.—Treasury Savings Certificates are offered hereunder, until further notice, at the following flat issue prices: Denomination (maturity value): $25 100.. 1,000 Issue price. $20 80 800 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 (6) graduated additional income taxes, commonly known as surtaxes, and excess-profits' and warprofits 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 to 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 respective face amounts as stated thereon, upon presentation and surrender of the certificates by mail or otherwise at the OflBce 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 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 afl5x the oflBLcial postmark of his oflice), an executive oflicer of an incorporated bank or trust company (who should also afl&x 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. 6. Payment prior to maturity.—Owners of Treasury Savings Certificates issued hereunder, at their option, will be entitled to receive, prior to maturity, the lesser amount indicated for the respective 297 SECRETARY OF THE TREASURY. months following issue 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, D. C, and upon compliance with aU other provisions thereof. Tables showing how Treasury savings certificates, issue of December 1, 1923, increase in value during successive months following issue. DENOMINATION OF $25.—ISSUE PRICE, $20. Month. First Second Third Fourth Fifth Sixth .: Seventh. Eighth Ninth . Tenth Eleventh T welfth First year. Second year. Third year. Fourth .year. Fifth year. $20.00 20.05 20.10 20.15 20.20 20. 25 820.70 20:75 . 20.80 20.85 20.90 20.95 $21.45 ' 21.50 21.55 21.60 21.65 21.70 $22. 20 22.25 22.30 22.35 22.40 22.45 $23.00 23.05 23.10 23.15 23.20 ' 23.25 20.35 20.40 20.45 20.50 20.55 20.60 21.05 21.10 21.15 21.20 21.25 21.30 21.80 21.85 21.90 21.95 22.00 22. 05 22.60 22.65 22.70 22.75 22.80 22. 85 23.40 23.45 23.50 23.55 23.60 23.65 1 1 A t m a t u r i t y , 5 y e a r s f r o m d a t e of i s s u e . . S25.00 DENOMINATION OF,$100.—ISSUE PRICE, $80. Month. First Second . Third Fourth Fifth Sixth ...*... Seventh Eighth Ninth . . . . Tenth Eleventh. Twelfth . . . First year. Second year. Third year. Fourth year. Fifth year. $80.00 80.20 80.40 80.60 80.80 81.00 $82.80 83.00 83.20 83.40 83.60 83.80 $85. 80 86.00 86.20 86.40 86.60 86.80 $88.80 89.00 , 89. 20 89.40 89.60 89.80 $92.00 92.20 92.40 92.60 92.80 93.00 81.40 81.60 81.80 82.00 82.20 82.40 84.20 84.40 84. 60 84.80 85.00 85.20 87.20 87.40 87.60 87.80 88.00 88.20 90. 40 90. 60 90.80 91.00 91.20 91.40 A t m a t u r i t y , 5 y e a r s f r o m d a t e of i s s u e . . 93.60' 93.80 94.00 94.20 94.40 94.60 SIOO.OO DENOMINATION OF $1,000.—ISSUE PRICE, $800. First year. Month.. First Second '. Third Fourth . . . Fifth Sixth . . . Seventh Eighth Ninth Tenth Eleventh Twelfth : A t m a t u r i t y , 5 y e a r s f r o m d a t e of i s s u e . . Second year. Third year. Fourth year. Fifth year. $800 802 804 806 808 810 $828 830 832 834 836 838 $858 860 862 864 866 868 • $888 890 892 894 896 898 $920 922 924 926 928 930 814 816 818 820 822 824 842 844 846 848 850 852 872 874 876 878 880 882 904 906 908 910 912 914 936 938 940 942 944 946 S1,000 298 REPORT oisr T H E FINANCES. 7. Exchanges 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. 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 forwarded to the Third Assistant Postmaster General, Division of Stamps, in accordance with instructions issued by the Postmaster General. 9. Transmission of registration stubs by other 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 re-, ceiving 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. The original registration stubs detached from Treasury Savings Certicates sold by the Treasurer of the United States shall also be forwarded to the Division of Loans and Currency. EXCHANGE OF' WAR SAVINGS CERTIFICATES, SERIES OF 1919, AND TREASURY SAVINGS CERTIFJCATES, SERIES OF 1919. 10. United States War Savings Certificates, Series of 1919, will be accepted in exchange for Treasury Savings Certificates offered hereunder, at the maturity value of $5 for each War Savings Stamp, Series of 1919, affix:ed to the War Savings Certificates surrendered, pursuant to the provisions of Treasury Department Circular No. 330, dated November 15, 1923. United States Treasury Savings Certificates, Series of 1919, will be accepted in exchange for Treasury Savings Certificates offered hereunder, at the maturity value thereof, pursuant to the provisions of Treasury Department Circular No. 331, dated November 15, 1923. WAR SAVINGS CERTIFICATES, SERIES OF 1918, AND TREASURY SAVINGS CERTIFICATES, SERIES OF 1918. . 11. United States War Savings Certificates, Series of 1918, and Treasury Savings Certificates, Series of 1918, which matured and ceased to bear interest on January 1, 1923, will be accepted at their maturity value on and after December 1, 1923, on account of the purchase price of Treasury Savings Certificates offered hereunder, with immediate cash adjustment of any difference, whether in favor of the applicant or in favor of the United States. On and after December 1, 1923, Treasury Savings Certificates, Issue of September SECRETARY OF THE TREASURY. 299 30, 1922, Will not be issued in exchange for War Savings Certificates, Series of 1918, or Treasury Savings Certificates, Series of 1918, and Treasury Department Circulars Nos. 308, dated November 9, 1922, and 310, dated November 15, 1922, are amended accordingly. TREASURY SAVINGS STAMPS AND THRIFT STAMPS. 12. United States Treasury Savings Stamps and Thrift Stamps 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, D. C , any Federal Reserve Bank, or any money-order post office. CONVERSION OF POSTAL SAVINGS DEPOSITS. 13. 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 day of the month in which such purchase is made. AGENCIES FOR SALE. 14. 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 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. 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 under IVeasury Deipartment Circular No. 216, dated December 15, 1920, as modified and extended by Treasury Department Circular No. 270, dated December 15,. 1921, and Treasury Department Circular No. 301, dated September 30, 1922. 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 offered hereunder without further application; and by the receipt or sale of Treasury Savings Certificates offered hereunder, 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 L. & C. 356, 357, and 358, with regard to collateral agents,: revised 62166^ril923—-21 300 REPORT ON T H E FINANCES. 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. SURRENDER OF TREASURY SAVINGS CERTIFICATES, ISSUE OF SEPTEMBER 3 0 , 1 9 2 2 , BY COLLATERAL AGENTS AND POST OFFICES. 15. The sale of United States Treasury Savings Certificates, Issue of September 30, 1922, offered under the provisions of Treasury Department Circular No. 301, dated September 30, 1922, will cease at the close of business on November 30, 1923. Every collateral agent shall surrender, immediately thereafter, to the Federal Reserve Bank from which such certificates were obtained, all Treasury Savings Certificates, Issue of September 30, 1922, not sold before the close of business November 30, 1923, and upon such surrender shall receive appropriate credit for the certificates surrendered in its account with the Federal Reserve Bank. Post offices will be required to surrender all Treasury Savings Certificates, Issue of September 30, 1922, held by them for sale and remaining in their hands unsold at the close of business on November 30, 1923, in accordance with instructions issued by the Postmaster General. MISCELLANEOUS PROVISIONS. 16. Treasury Savings Certificates are not receivable as security for deposits of public moneys and do not bear the circulation privilege. 17. The Secretary of the Treasury may at any time withdraw this circular as a whole or make from time to time any supplemental or amendatory regulations which shall not modify or impair the terms and conditions of Treasury Savings Certificates issued hereunder. The Secretary of the Treasury may at any time withdraw the Treasury Savings 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. 18. 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 circular, the rights of holders of Treasury Savings Certificates issued hereunder. The provisions of Treasury Department Circular No. 178, dated January 15, 1920, as amended and supplemented, with respect to holdings of United States War Savings Certificates in excess of the legal limit, apply to and govern Treasury Savings Certificates issued hereunder, subject to the provisions of this circular. 19. The issue of Treasury Savings Certificates of the Series of 1920 and 1921, 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. Such issue will only be made at the Treasury Department, Washington; Provided, however. That when registered 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 certificates are surrendered. Copies of these forms may be obtained SECRETARY OF THE TREASURY. 301 at Federal Reserve Banks, duly qualified post offices, and the Treasury Department, Division of Loans and Currency, Washington. 20. 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 DEPARTMENT. Loans and Currency. Form L. & C. 356 (RcAised, 1923).- PLEDGE AGREEMENT. To the FEDERAL RESERVE BANK 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 provisions of Treasury Department Circular No. 329, dated November 15, 1923, 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 in the aggregate amount of I (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, froni time to time thereafter, additional Treasury Savings Certificates (at maturity value) up to but 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 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^ 329, dated November 15, 1923, 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 by it), and to pledge with such Federal Reserve Bank, in negotiable form, and in the case of coupon bonds, with all unmatured coupons attached, the following-described bonds and other securities, of the classes described in subdivisions (a), (6), 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. 329: 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 in accordance with the provisions of said Treasury Department Circular No. 329, 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 hereunder or under said Treasury Department Circular No. 329, dated November 15, 1923, 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 302 REPORT ON THE FINANCES. 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.) TREASURY DEPARTMENT. Loans and Currency. Form L. & C. 357 (Revised, 1923). (Address, number, and street) (City or town) ...'. (County) (State) Name Street and number City or town County , , 1.. State Your pledge agreement on Form L. & C. 356 (Revised, 1923) 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. 329, dated November 15, 1923, as from time to time amended and supplemented. Federal Reserve Bank of :., ^ , Fiscal Agent of th§^Mnited States, - • Dated By* , :.:::.... .r.vr.: r.'rrf:..., , 192 Governor. (Original to be 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.) TREASURY DEPARTMENT. Loans and Currency. Form L. & C. 358 (Revised, 1923). Serial No. MONTHLY ACCOUNT OF SALES OF TREASURY SAVINGS CERTIFICATES BY COLLATERAL AGENT. To Federal Reserve Bank of , The undersigned hereby renders the following account of transactions in Treasury Savings Certificates from , 192 , to , 192 , both inclusive: Stock account. Number of pieces, Treasury Savings Certificates. Denomination, Denomination, Denomination, $25. $100. $1,000. On hand at close of preceding month Obtained during month \ Total Sales during month Unsold stock returned ' Net total on hand : o — 308 SECRETARY OE THE TREASURY. Gross amount due in respect of sales. Number of pieces. Issue price. Total issue value. f$25 denomination Treasury Savings Certificates < $100 denomination l$l,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: War Savings Certificates, Series of 1918, with War Savings Stamps affixed, received in exchange for Treasury Savings Certificates, stamps taken at $5 each . . . . War Savings Certificates, Series of 1919, with War Savings * Stamps affixed, received in exchange for Treasury Savings Certificates, stamps taken at $5 each Treasury Savings Cards with Treasury Savings Stamps affixed, received in exchange for Treasury Savings Certificates stamps taken at $1 each Thrift Cards with Thrift Stamps affixed, received in exchange for Treasury Savincs Certificates Thrift Stamns taken at 25 cents each Remarks. (Signed). (Name of Collateral Agent.) By- (Official signatiure required.) (Address, number, and street) (City or town) (County) (State) NOTE 1.—A similar account must be rendered to cover each month's transactions. NOTE 2.—NO medium of payment other than above provided will be. accepted by any Federal ReserveBank except at its own risk, and no agent shall be entitled to credit, in respect of any payment to be madeby check or draft, except when such draft shall have been collected by the Federal Reserve Bank, as flscali agent of the United States. 304 REPORT ON T H E FINANCES. EXHIBIT 50. [Department Circular No. 330. Public Debt.] B 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 , SERIES O F 1919. TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, Washington, November 15, 1923. To Holders of War-Savings Certificates of the Series of 1919, Postmasters, Federal Reserve Panics, and Others Concerned: United States War-Savings Certificates of the Series of 1919 become due and payable January 1, 1924, according to their terms. The Secretary of the Treasury offers special facilities for their redemption and exchange, as follows: 1. General.—Holders of War-Savings Certificates, Series of 1919, will be entitled to receive on or after January 1, 1924, $5.00 for each War-Savings Stamp of the Series of 1919 then affixed thereto. Certificates having registered stamps aflixed 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, 1924, redeem their certificates in cash, at maturity value, or beginning December 1, 1923, may exchange them, at,maturity value, with any necessary adjustments in cash, for Treasury Savings Certificates, Series of 1924, issued pursuant to Treasury Department Circular No. 329, dated November 15, 1923. Certificates presented for either redemption or exchange must 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 entitled to receive payment under the provisions of Treasury Department Circular No. 108, Revised, dated August 1, 1923. Banking institutions generally will handle reciemptions 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 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, at Washington, D. C , in the case of unregistered certificates. Holders 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, 1924, upon surrender of the certificates, duly receipted as herein provided, to the Federal Reserve Bank of the district. SECRETARY OF THE TREASURY. 305 (a) Presentation before maturity.—In order to facilitate redemptions of maturing certificates holders are offered the privilege, beginning December 1, 1923, of surrendering their certificates, receipted as of January 1, 1924, 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, 1924. Postmasters receiving certificates in advance of January 1, 1924, 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 certificates thus presented, including certificates presented direct to Federal Reserve Banks and branches or the Treasurer of the United States for redemption as of January 1, 1924, will be made by check payable to the order of the holder, which wall be mailed to reach him on or about January 1, 1924. (b) Presentation at or after maturity.—Cash redemption will be. made only as of January 1, 1924, or on later surrender. Certificates presented on or after January 1, 1924, 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 payment 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 Saving's Certificates.—II.oldeYs 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, or 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 1919, in exchange for Treasury 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 F e d e r ^ Reserve Bank. Collateral agents may make cash adjustments in connection with such exchanges, as herein provided, accounting therefor to the Federal Reserve Bank. (a) Presentation between December 4,1923, and January 15, 1924-— Exchanges of War-Savings Certificates, Series of 1919, for Treasury Savings Certificates, Series of 1924, will be made as of January 1,1924, upon applications filed between December 1, 1923, and January 15, 1924, accompanied by the War-Savings Certificates to be exchanged, duly receipted as herein provided. Treasury Savings Certificates, dated and carrying interest from January 1, 1924, wul be delivered promptly upon exchange, registered in the name and address re 306 REPORT ON THE FINANCES. by the holder of the surrendered War-Savings Certificates, guested ash 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, 1924, 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 difference. Treasury Savings Certificates will not in any event be redeemable before the date of issue stated thereon. (b) After January 15, 1924-—Exchanges after January 15, 1924^ will be made as of the date of presentation and surrender. The Treasury Savings Certificates issued upon such exchange will 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 Certificates, Series of 1919, for redemption or exchange, whether in advance of January 1, 1924, or on or after that date, holders may use Form P . D. 830, copies of which may be obtained upon application from any post office, any Federal Reserve Bank or branch, or the Treasury Department, Washington, D. C. A copy of this form, giving examples of exchanges of War-Savings Certificates for Treasury Savings Certificates, is attached to this circular as an exhibit. (&) Procedure in case of death or disability of the owner.—The provisions of Treasury Depai'tment Circular No. 108, Revised, dated August 1, 1923, further define the rights of holders 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 h j the legal representative of the estate and accompanied by a certificate of his appointment or by duly certified copies of the letters testamentary or letters of administration, as the case may be. Certificates inscribed in the names of minors should be receipted by the legal guardian, or, if there is no guardian, by the minor himself if of simcient competency and understanding to sign the receipt and comprehend the nature thereof, or, if not of sufficient competency a;nd understanding, receipted for the minor by the parent or natural guardian with whom the minor resides. Holders may obtain 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 September 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 1919 to an aggregate aniount exceeding $5,000 (maturity value). Holders may, however, redeem their excess holdings in accordance with the provisions of Treasury Department Circular No. 178, dated January 15, 1920, as amended and supplemented. SECRETARY OF THE TREASURY. 307 (d) Further information.—^Any further information which may be desired as to the redemption or exchange of War-Savings Certificates of the Series of 1919 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 time to time prescribe supplemental or amendatory rules and regulations governing the redemption and exchange of War-Savings Certificates, Series of 1919. A. W. MELLON, Secretary of the Treasury. TREASURY DEPARTMENT. LOANS AND CURRENCY. Form P. D. 830. Ed. 1,500,000. Oct. 19-23. R E Q U E S T FOR R E D E M P T I O N OR EXCHANGE O F WAR-SAVINGS CERTIFICATES, S E R I E S OF 1919. War-Savings Certificates due January 1, 1924j inay be presented at any time on or after December 1, 1923, 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-order post office, at any Federal Reserve tank or branch, or to the Treasurer of the United States, Washington, D. C. IMPORTANT: g Cash redemptions of certificates will be made only as of January 1, 1924, or upon later surrender. Exchanges for Treasury Savings Certificates, Series of 1924, willbe made as of January 1,1924, upon applications presented between December 1, 1928, and January 16, 1924, and new certificates dated January 1, 1924, '^itt be delivered promptly upon surrender. Exchanges after January 16, 1924, willbe made as of the date of surrender. Immediate payment will be.made ofanycashdiffer.t of Treasury Savings Certificates you can I other cases the cash difference due you will . A n y cash difference due from you must accompany 'the application. (See examples on other side.) To the SECRETARY OP THE TREASURY, Washington^ D. C : The undersigned presents herewith— War-Savings Stamps affixed to War-Savings (How many.) Certificates, 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 on other side.) Total $. $. $. 308 REPORT ON THE FINANCES. And requests— Cash, in the amount of '. (To be paid to the bank through which presented; otherwise to the appUcant direct. I . . -: , Treasury Savings Certificates, having a maturity value of I , as described below,* at an aggregate issue price of $ (Issue prices: S20 for a $25 certificate; S80 for a SlOO certificate; and $800 for a S1,000 certificate.) $ Total (which must agree with total given above)... $ * Issue Treasury Savings Certificates, Series of 1924, as follows: i|@=*Errors will be avoided if name and address are typewritten; otherwise write or print distinctly. N A M E I N W m C H TREASURY SAVINGS CERTIFICATES A R E TO B E I S S U E D . POST-OFFICE A D DRESS. NUMBER DESIRED. DENOMINATION. MATURITY VALUE. ISSUE PRICE. (Signature of applicant.) (Number.) (Street.) (Town or city.) (State.) 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 1919, being all the (How many.) POST O F F I C E STAMP re^stered stamps surrendered with this application, are on file in this office, and that such cards have been marked ''Paid." I am satisfied 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.) (Postoffic.) [SEE OTHER SIDE FOiR FURTHER DETAILS.! "(State.) SECRETARY OF THE TREASURY. EXCHANGE YOUR WAR-SAVINGS CERTIFICATES FOR TREASURY SAVINGS CERTIFICATES. 309 THE NEW War-Savings Certificates, Series of 1919, mature January 1, 1924, when $5 will be payable for each War-Savings Stamp, Series of 1919, then affixed thereto. The certificates may be redeemed in cash on or after January 1, 1924, or may be E X C H A N G E D A T A N Y T I M E O N O R A F T E R DECEMBER 1, 1923, FOR TREASURY SAVINGS CERTIFICATES. Treasury Savings Certificates are issued in denominations of $25, $100, and $1,000 (maturity value), and sold on a discount basis for $20, $80, and $800, 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 per annum, compounded semiannually, if held to maturity, or about 3^ per cent per annum, compounded semiannually, 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), §rm, corporation, or association—may hold Treasury Savings Certificates of 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 1924, Avill be made as of January 1, 1924, upon applications filed between December 1, 1923, and January 15, 1924, and new certificates dated January 1, 1924, will be delivered promptly upon surrender. Exchanges after January 15, 1924, 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, 1924, 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 applicafit on or about January 1, 1924. WHAT YOU CAN GET BY EXCHANGING YOUR 1919 WAR-SAVINGS CERTIFICATES. In exchange for $1,000 (maturity value) of War-Savings Certificates, $1,250 (maturity value) of Treasury Savings Certificates will be issued; or, if the applicant desires, he may receive $1,000 (maturity value) of Treasury Savings Certificates and a cash adjustment of $200. In exchange for $500 (maturity value) of War-rSavings Certificates, $625 (maturity value) of Treasury Savings Certificates will be issued; or, if the applicant desires, he may receive $500 (maturity value) of Treasury Savings Certificates and a cash adjustment of $100. In exchange for $100 (maturity value) of War-Savings Certificates, $125 (maturity value) of Treasury Savings Certificates will be issued; or, if the applicant desires, he may receive $100 (maturity value) of Treasury Savings Certificates and a cash^ adjustment of $20. In exchange for $50 (maturity value) of War-Savings Certificates, $50 (maturity value) of Treasury Savings Certificates will be issued and the applicant will immediately receive i)ayment of the cash difference of $10; or, if the applicant desires, upon payment by him of a cash adjustment of $10 he may receive $75 (maturity value) of Treasury Savings Certificates. • In exchange for $25 (maturity value) of War-Savings Certificates, $25 (maturity value) of Treasuiy Savings Certificates will be issued and the applicant will immediately receive jDayment of the cash difference of $5; or, if the applicant desires, upon payment by him of a cash adjustment of $15 he may receive $50. (maturity value) of Treasury Savings Certificates. These examples may be applied to other maturity values in the same relation, and the applicant may receive lesser amounts of Treasury Savings Certificates, in multiples of $25 (maturity value), than are indicated above, with corresponding increases in the cash adjustments.to be paid by the United States. The cash adjustments due the United States, as, for example, where the holder of $50 (maturity value) of War-Savings -Certificates desires $75 (maturity value) of Treasury Savings Certificates,.must be paid in all cases at the time of exchange. Cash adjustments due the applicant will be paid on January 1, 1924, 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, for example, where the holder of $50 (maturity value) of War-Savings Certificates 310 REPORT ON THE FINANCES. applies for.$50 (maturity value).of Treasury Savings Certificates. It will be noted that in no case will the cash differences payable to applicants before January 1, 1924, exceed $15, since a cash difference of $20 would make it possible to buy 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. CONSULT YOUR BANK OR YOUR POSTMASTER. E X H I B I T 51. pepartment Circular No. 331. Public Debt.] REDEMPTION AND EXCHANGE OF TREASXTIIY SAVINGS CERTIFICATES, SERIES OF 1919. TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, Washington, November 15, 1923. To Owners of Treasury Savings Certificates of the Series of 1919, and Others Concerned: United States Treasury Savings Certificates of the Series of 1919 become due and payable January 1, 1924, according to their terms. Treasury Savings Certificates of the Series of 1919 are all in registered form, and bear on their face the title ''United States War Savings Certificate, Registered Issue.'' The Secretary of the Treasury offers special facilities for their redemption and exchange, as follows: 1. General.—Registered owners of Treasury Savings Certificates, Series of 1919, will be entitled to receive on or after January 1, 1924, One Thousand Dollars ($1,000) for each $1,000 certificate and One Hundred Dollars ($100) for each $100 certificate. Certificates are payable and must be presented and surrendered (by mail or otherwise) at the office of the Secretary of the Treasury, Division of Loans and Currency, Washington, D. C. Owners may, on or after January 1, 1924, redeem their certificates in cash at maturity value, or, beginning December 1, 1923, may exchange them at maturity value for Treasury Savings Certificates, Series of 1924, issued pursuant to Treasury Department Circular No. 329, dated November 15, 1923, and inscribed in the same name or in such other name or names as the owner may request. The demand for payment appearing on the back of each certificate presented for either redemption or exchange must be properly signed by the owner in the presence of and duly certified by a United States postmaster (who should afl&x the official postmark of his office), an executive officer of an incorporated bank or trust company (who should 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 the event of the death or disability of the owner, the demand for payment shall be executed by the person entitled to receive payment under the provisions of Treasury Department Circular No. 149, Revised, dated August 1, 1922. 2. Cash Redemption— {a) Presentation before maturity.—In order to facilitate redemptions of maturing certificates, owners are offered the privilege, beginning December 1, 1923, of surrendering their certificates in advance, for redemption as of January 1, 1924. Payment for all certificates thus presented will be made by check payable to the order of the registered owner, which will be mailed to reach him on or about January 1, 1924. SECRETARY OF THE TREASURY. 311 (b) Presentation at or after maturity.—Cash redemption will be made only as of January 1, 1924, or on later surrender. Payment will be made by check payable to the order of the registered owner. 3. Excha/ngefor Treasury Savings Certificates, Series of 1924— (a) Presentation between December 1, 1923, and January 15, 192Jf..— Exchanges of Treasury Savings Certificates, Series of 1919, for Treasury Savings Certificates, Series of 1924, will be made as of January 1, 1924, upon applications filed between December 1, 1923, and January 15, 1924, accompanied by the Treasury Savings Certificates to be exchanged, as herein provided. Treasury Savings Certificates dated and carrying interest from January 1, 1924, wiU be dehvered promptly upon exchange, registered in the name and address requested by the owner of the surrendered Treasury Savings Certificates. If the applicant does not take the maximum amount of Treasury Savings Certificates covered by the maturity value of the Treasury Savings Certificates surrendered, a check for the cash difference in favor of the registered owner will be mailed to reach him on or about January 1, 1924. The Treasury Savings Certificates, Series of 1924, issued upon exchange, will not in any event be redeemable before the date of issue stated thereon. (&) After January 15, 192^.—^Exchanges after January 15, 1924, will be made as of the date of receipt at the Treasury Department. The Treasujry Savings Certificates issued upon such exchange will be dated and carry interest from the date of exchange, and will be registered in the name and address requested by the owner of the surrendered Treasury Savings Certificates. Cash adjustments in favor of the registered owner, where the applicant does not take the maximum amount of Treasury Savings Certificates covered by the maturity value of the Treasury Savings Certificates surrendered, will be made at the time of the exchange. 4. Further Details— (a) Forms.—hi presenting Treasury Savings Certificates, Series of 1919, for redemption or exchange, whether in advance of January 1, 1924, or on or after that date, holders may use Form P . D. 831, a copy of which is attached to this circular. Additional copies of this circular ma}^^ be obtained upon application from the Treasury Department, Division of Loans and Currency, Washington, D. C. (&) Procedure in case of death or disability of the owner.—The provisioDs of Treasury Department Circular No. 149, Revised, dated August 1,1922, further define the rights of holders of Treasury Savings Certificates and will govern the presentation and surrender of certincates for redemption or exchange in the event of the death or disability of the owner. (c) Further information.-^AMJ further information which may be desired as to the redemption or exchange of Treasury Savings Certificates of the Series of 1919 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 time to time prescribe supplemental or amendatory rules and regulations governing the redemption and exchange of Treasury Savings Certificates, Series of 1919. A. W. MELLON, Secretary of the Treasury. 312 REPORT ON T H E FINANCES. TREASURY DEPARTMENT, LOANS AND CURRENCY. Form P . D. 831. Ed. 25,000.—Nov. 15-23. R E Q U E S T FOR REDEMPTION OR EXCHANGE OF TREASURY SAVINGS CERTIFICATES, S E R I E S OP 1919. Important: Treasury Savings Certificates due January 1, 1924, m a y be presented at any time on or after December 1, 1923, for immediate exchange or for payment at maturity. Certificates must be presented to the Treasury Department, Division of Loans and Currency, Washington, D. C. To the SECRETARY OF THE TREASURY, Division of Loans and Currency, Washington, D . C. The undersigned presents herewith— - Treasury Savings Certificates, Series of 1919, with the demand for payment thereon properly executed, having an aggregate maturity value of And requests— Cash, in the amount of $ Treasury Savings Certificates, Series of 1924, having a maturity value of I , as described below,* at an aggre- gate issue price of I (Issue prices: S20 for a $25 certificate; $80 for a $100 certificate; and $800 for a $1,000 certificate.) * Issue Treasury Savings Certificates, Series of 1924, as follows: 4®"Errors will be avoided if name and address are typewritten; otherwise write or print distinctly. NAME IN WHICH TREASURY SAVINGS CERTIFICATES ARE TO BE ISSUED POST-OFFICE ADDRESS NUMBER DESIRED DENOMINATION MATURITY VALUE ISSUE PRICE n (Signature of appUcant.) ' * * * '(Number) (Town or city) [SEE OTHEB SIDE FOR FURTHER DETAILS.] (Street) * (State) SECRETARY OF THE TREASURY. 313 EXCHANGE YOUR 1919 TREASURY SAVINGS CERTIFICATES FOR THE NEW TREASURY SAVINGS CERTIFICATES. Treasury Savings Certificates, Series of 1919, mature January 1, 1924. The certificates may be redeemed in cash on or after January 1, 1924, or may be E X C H A N G E D A T A N Y TIME ON OR AFTER D E C E M B E R 1, 1923, F O R N E W T R E A S U R Y I N G S CERTIFICATES, S E R I E S OP 1924. SAV- Treasury Savings Certificates, Series of 1924, are issued in denominations of $25, $100, and $1,000 (maturity value), and sold on a discount basis for $20, $80, and $800, 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 per annum, compounded semiannually, if held to maturity, or about 3i per cent per annum, compounded semiannually, 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), firm, corporation or association—^may hold Treasury Savings Certificates of any one series'to an aggregate amount not exceeding $5,000 (maturity value) at any one tirae. Exchanges of Treasury Savings Certificates, Series of 1919, for Treasury Savings Certificates, Series of 1924, will be made as of January 1, 1924, upon applications filed between December 1, 1923, and January 15, 1924, and new certificates dated January 1,1924, will be delivered promptly upon surrender. Exchanges after January 15, 1924, will be made as of the date of surrender. Treasury Savings Certificates will be received by the Secretary of the Treasury, Division of Loans and Currency, Washington, D. C, in advance of January 1, 1924, for redemption on that date, payment to be made by check to the order of the registered holder, which will be mailed so far as possible to reach the registered holder on or about January 1, 1924. W H A T Y O U CAN GET BY E X C H A N G I N G Y O U R 1919 T R E A S U R Y SAVINGS CERTIFICATES. In exchange for $1,000 (maturity value) of Treasury Savings Certificates, Series of 1919, $1,250 (maturity value) of Treasury Savings Certificates, Series of 1924, will be issued; or, if the applicant desires, he may receive $1,000 (maturity value) of Treasury Savings Gertincates, Series of 1924, and a cash adjustment of $200. In exchange for $500 (maturity value) of Treasury Savings Certificates, Series of 1919, $625 (maturity value) of Treasury Savings Certificates, Series of 1924, will be issued; or, if the applicant desires, he may receive $500 (maturity value) of Treasury Savings Certificates, Series of 1924, and a cash adjustment of $100. In exchange for $100 (maturity value) of Treasury Savings Certificates, Series of 1919, $125 (maturity value) of Treasury Savings Certificates, Series of 1924, will be issued; or, if the applicant desires, he may receive $100 (maturity value) of Treasury Savings Certificates, Series of 1924, and a cash adjustment of $20. These examples may be applied to other maturity values in the same relation, and the applicant may receive lesser amounts of Treasury Savings Certificates, Series of 1924, in multiples of $25 (maturity value), than are indicated above, with corresponding increases in the cash adjustments to be paid by the United States. Cash adjustments due the applicant will be paid on January 1, 1924, or upon later exchange. 314 REPORT ON THE FINANCES. EXHIBIT 52. [Department Circular No. 39, revised. Accounts and Deposits.) OFFERS OF COMPROMISE UNDER SECTION 3469, R E V I S E D S T A T U T E S U N I T E D STATES. TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, Washington, January 3, 1923. Treasury Department Circular No. 39, dated December 29, 1914, is hereby amended and supplemented so as to read as follows: The following rules and regulations are prescribed for carrying into effect Section 3469, Eevised Statutes of the United States, which provides as follows: ^^Upon a report by a district attorney, or any special attorney or agent having charge of any claim in favor of the United States, showing in detail the condition of such claim, and the terms upon which the same may be compromised, and recommending that it be compromised upon the terms so offered, and upon the recommendation of the Solicitor of the Treasury, the Secretary of the Treasury is authorized to compromise such claim accordingly. But the provisions of this section shall not apply to any claim arising under the postal laws.^^ 1. The report of the district attorney, or special attorney or agent having charge of any claim in favor of the United States in which an offer of compromise is made, except claims arising under the postal laws, must be presented to the Solicitor of the Treasury, who will forward the report, with his recommendation, to the Secretary of the Treasury for final action. 2. No oft'er in compromise of any such claim in which a specific sum of money is offered under the above-quoted statute will be considered until such sum, together with costs of suit, if any, shall have been deposited to the credit of the Secretary of the Treasury's Special Deposit Account No. 5 with the IVeasurer of the United States, and the original copy of the certificate of deposit issued therefor received by the Treasurer of the United States and the Solicitor of the Treaisury notified of such receipt. 3. Moneys so offered in compromise may be deposited to the credit of such Special Deposit Account at the United States ' Treasury, with any Federal Reserve Bank or branch, or a general National bank depositarv. The Federal Reserve Bank or branch or general National bank depositary will be governed in accepting such deposits by the provisions of Department Circular No. 176, Amended and Supplemented, dated May 15, 1922, and will issue certificate of deposit in duplicate, on Form 6599, original to be transmitted to tne Treasurer of the United States, and the duplicate to the depositor. The Treasurer of the United States will, upon receipt of the original copy, of the certificate of deposit on Form 6599, or upon the deposit direct with him of the money so offered in compromise, issue certificate of deposit in triplicate on Form 5260, the original to be transmitted to the Division of Bookkeeping and Warrants, the duplicate to the Solicitor of the Treasury, and the triplicate to be retained in his oflSce. If the offer in compromise be rejected, the money will SECRETARY OF T H E TREASURY. 815 be retm'ned to the proponent; if accepted, it will be covered into the Treasury. 4. To enable a proponent, at a distance from any of the abovenamed depositaries, to perfect his offer in compromise, the Secretary oi the Treasury will receive for this purpose a bank draft or a money order for the amount of the offer, payable to his order, the draft or money order to be collected by him and the proceeds placed to the credit of his account, awaiting action on the offer. 5. The Secretary of the Treasury may withdraw or amend at any time or from time to time 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, EXHIBIT 53. [Department Circular No. 312. Division of Bookkeeping and Warrants.] JUDGMENTS RENDERED AGAIN ST THE UNITED STATES BY UNITED STATES DISTRICT COURTS. TREASURY DEPARTMENT, O F F I C E OF THE SECRETARY, Washington, D. C, November 14, 1922. The following regulations are to be observed in order to obtain ayment of judgments rendered against the United States by the district Courts of the United States, for which the necessary appropriations have been provided by Congress: 1. The judgment creditor will procure and transmit to the Secretary of the Treasury a properly certified copy of the judgment rendered in his favor. The present address of the judgment creditor should be transmitted witn the certified copy of the judgment, unless some person shall be designated as attorney in fact, by power of attorney, to receive the custody of the check to be issued. Such power of attorney must be executed in proper legal form after the date of the rendition of the judgment, and there should be affixed thereto the requisite revenue stamps. 2. Promptly upon receipt of the copy of the judgment, it will be forwarded to the General Accounting Office for the necessary examination and statement of certificate of settlement. Upon receipt of the certificate of settlement by the Treasury Department, a warrant will be issued and forwarded to the Treasurer of the United States for his action in mailing the check in payment thereof. 3. Checks issued in payment of judgments rendered by United States District Courts, or other courts, shall be made payable to the order of the judgment creditor and will be forwarded to the bona fide post-office address of the payee or delivered to or sent in care of the attorney in fact when power of attorney has "been filed as required by paragraph 1. 4. Upon the payment of judgments of United States District Courts, to which these regulations apply, notice of such payment, giving number, class, date of warrant, and amount paid, snail be E 62166—FI 1923 22 316 REPORT ON, THE FINANCES. sent forthwith by the Division of Bookkeeping and Warrants, Treasury Department, to the clerk of the court in which the judgment was entered in order that satisfaction may be entered on the docket of the court. 5. These regulations do not apply to judgments against the United States under the provisions of An Act Authorizing suits against the United States in admiralty, suits for salvage services, and providing for the release of merchant vessels belonging to the United States from arrest and attachment in foreign jurisdictions, and for other purposes,'' approved March 9, 1920, nor to judgments against collectors of internal revenue, or collectors of customs. Any correspondence regarding the obtaining of payment of judgments under the Act of March 9, 1920, should be addressed to the Chairman of the United States Shipping Board. Certified copies of judgments against collectors of internal revenue should be sent to the Commissioner of Internal Revenue, and certified copies of judgments against collectors of customs, to the Chief, Division of Customs, Washington, D. C. 6. Treasury Department Circular 102, dated October 24, 1890, and all other regulations and instructions inconsistent herewith are hereby superseded. A. W. MELLON, Secretary of the Treasury. EXHIBIT 54. [Department Circular No. 311. Division of Bookkeeping and Warrants.] PROCEDURE UNDER PARAGRAPH 2 OF TREASURY DEPARTMENT CIRCULAR NO. T95 OF JANUARY 24, 1921, IN CONNECTION WITH REQUISITIONS FOR DISBURSING CREDITS, WHEN THE AMOUNT OF THE CREDIT REQUESTED EXCEEDS THE PENALTY OF THE OFFICIAL BOND OF THE DISBURSING OFFICER AS DEFINED BY THE COMPTROLLER GENERAL OF THE UNITED STATES. TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, Washington, November 14j 1922. To Disbursing Officers and Others: The following letters of June 12, 1922, and October 26, 1922, are published for your information and guidance: JUNE 12, 1922. The COMPTROLLER GENERAL OP THE UNITED STATES, Treasury Department. SIR: Referring to Assistant Secretary LeffingweU's letter of December 13, 1918, addressed to the Comptroller of the Treasury, I beg to call your attention to the practice of at least one of the divisions of the General Accounting Office in giving a qualified approval of requisitions drawn upon the Treasury for advances to civil disbiusing officers when the requisitions are in excess of the penalties of their official bonds, the approval being made ''subject to the approval of the Secretary of the Treasury in the matter of exceeding the bond." In other cases it is the practice of heads of other departments and independent establishments, prior to drawing their requisitions, to request the Secretary of the Treasury to authorize an advance of funds in the case of a particular civil disbursing officer in excess of the penal ty of his bond. These requests or applications are made for such authorizations either to continue indefinitely, or for a particular time, or in limited amounts. Since the correspondence with the Comptroller of the Treasury, lust referred to, Treasury Department Circular No. 195, dated January 24, 1921, **rublic Moneys and Official Checks of United States Disbursing Officers," has been issued, and paragraph 2 of this circular (copy inclosed) laid down rules for the guidance of disbursing SECRETARY OF THE TREASURY. 317 officers and others concerned with regard to the approval of such advances. The circular, as you will note, makes distinction between advances to bonded,disbursing officers under the Treasury Department and the disbursing clerks of the several Government departments in Washington appointed under section 176 of the Revised Statutes, on the one hand, and other disbursing officers, the amounts of whose bonds are not subject to determination by the Secretary of the Treasury and whose personal reliability and other considerations which enter into the matter of approval of advances in excess of the penalties of their official bonds are better known to the heads of the departments and establishments with which they are connected than to the Secretary of the Treasury. The circular, however, states that authority for advances in excess of the penalties of the bonds of disbursing officers of other departments or establishments will be granted only on condition that requisitions for advances in excess of the penalty of the bond be first approved by the head of the department or establishment, or by authority from him so delegated; and in any case, the application, approval, or recommendation from or by authority of the head of the department, establishment, or office to which the disbursing .officer is attached, for advances in excess of the penalty of the bond, is regarded as a certificate to the effect that, taking into consideration the amount of his bond, the character of the officer, the conditions under which he acts, and the other circumstances bearing upon the security of public funds intrusted to his hands, advances up to the amount named may with safety be made. There seems to be no reason for requiring the approval of the Secretary of the Treasury in these cases, b u t the practice now is confused and many such cases are submitted. I should be glad to have your ruling on the law on this subject and the effect of Treasury Circular No. 195, in order that the Treasury may not be required to pass upon the propriety of such of these advances to disbursing officers of other departments and establishments as are not properly within its jurisdiction. By direction of the Secretary: Respectfully, S. P . GILBERT, Jr., Undersecretary. OCTOBER 26, The honorable the 1922. SECRETARY OP THE T R E A S U R Y : SIR: I have your letter of June 12, 1922, requesting my views as to the necessity of specific approval by you of advances made in excess of penalty of bond to disbursing officers of departments and establishments whose bonds are not subject to your determination, in view of the provisions of law^ applicable thereto and Treasury Circular No. 195, January 24, 1921. You state in your letter: ' ' I beg to call your attention to the practice of at least one of the divisions of the General Accounting Office in giving a qualified approval of requisitions drawn upon the Treasury for advances to civil disbm'sing officers when the requisitions are in excess of the penalties of their official bonds, the approval being made 'subject to the approval of the Secretary of the Treasury in the matter of exceeding the bond.' I n other cases it is the practice of heads of other departments and independent establishments, prior to drawing their requisitions, to request the Secretary of the Treasury to authorize an advance of funds in the cas3 of a particular civil disbm'sing officer in excess of the penalty of his bond. These requests or applications are made for such authorizations either to continue indefinitely, or for a particular time, or in Limited amounts." Under the provisions of R. S. 176 and certain special statutes the Secretary of t h e Treasury is given control over the amount of the bonds of disbursing clerks of the several departments in Washington and also other disbursing officers referred to in said special statutes. By inference or by statute the control over the amounts of bonds of all other disbursing officers is placed in the head of the department or establishment towhich each officer belongs, including the control by the Secretary of the Treasury of the bonds of disbursing officers of the Treasury Department. Such authority over the sufficiency of amounts of bonds is strengthened by the provisions of section 5 of t h e act of March 2, 1895 (28 Stat. 807): "Hereafter "** * * every officer having power to fix the amount of an official bond shall examine it to ascertain the sufficiency of the amount thereof and approve or fix said amount at least once in two years and as much oftener as he may deem it necessary." In Treasury Circular No. 65, dated May 29, 1905, it was stipulated that "advances of funds shall not be made to bonded disbursing officers in excess of the penalties of their bonds, except upon the written authority of the Secretary." This broad regula- 318 REPORT ON THE FINANCES. tion was evidently based upon the discretion given to the Secretary of the Treasury to grant warrants for moneys to be issued upon the Treasm'y within limitations established or to be established by law (R. S. 248). A requisition for funds by a disbursing officer, duly signed by the head of a department or establishment, or some one properly authorized to sign for him, is in the nature of a request upon the Secretary for an accountable warrant to issue, by which the desired funds may be placed to the credit of the disbursing officer named in the requisition. The Secretary may, in honoring the requisition thus made, require such evidence and establish such safeguards as in his judgment are requisite to adequately protect the interests of the United States. From the above regulation has arisen the procedure followed by the accounting officers of the Treasury, in the exercise of their legal function of approving or disapproving disbursing officers' requisitions for funds, of giving conditional approval or withholding same, if the grant of the requisition operates to place an amount to the credit of a disbursing officer in excess of the penalty of his bond or in excess of an amount previously authorized to be advanced in excess of said penalty, until a waiver is made by the Secretary in the particular case or generally. By Treasury Circular No. 195 of 1921 the above-quoted provision of Treasury Circular No. 65 of 1905 was superseded as follows: "2. Except upon written authority from the Secretary of the Treasury, advances of iunds shall not be made in excess of the penalties of their official bonds to bonded •disbursing officers of the Government the amounts of whose bonds are subject to determination by the Secretary of the Treasmy, as, for example, bonded disbursing officers under the Treasury Department, and disbursing clerks of the several departments pursuant to the provisions of section 176 of the Revised Statutes. Whenever advances to any such officer in excess of the penalty of the bond are required by the deraands of "the public business, a written statement of the necessity therefor, with an application -for the necessary authority, must be submitted to the Secretary of the Treasury, Division of Bookkeeping and Warrants, by the head of the department or •establishment, or Treasury office, to which the disbursing officer is attached. This Tegulation is not to be construed as requiring additional authority from the Secretary of the Treasury for advances in excess of the penalties of bonds in cases where general or specific authority therefor has already been given, nor as requiring authority from the Secretary of the Treasury for advances in excess of the penalties of the bonds in •cases where the matter is under the law intrusted to another Government department or establishment. Under the act approved March 30, 1900, advances can not be made to the Public Printer in excess of the penalty of his bond. Requisitions for advances •of funds to disbursing officers the amounts of whose bonds are not (?) subject to determination by the Secretary of the Treasury will be examined by the accounting officers of the Treasury to determine whether the advance is in excess of the penalty of the officer's bond, and if the advance is found to be in excess of the penalty of the bond and not covered either by a previously given authority to exceed the penalty of the bond or by a general or specific authority given pursuant to law, will be passed only upon authority therefor from the Secretary of the Treasury, or, as to disbursing officers the amount of whose bonds are not subject to determination by the Secretary of the Treasury, upon approval of the requisition by the head of the department or establishment to which the officer is attached, or by authority of the head of the department or establishment duly delegated pursuant to statute. Authority for advances in excess of the penalties of the bonds of disbursing officers of other departments or establishments will be granted only on condition that requisitions for advances in excess of the penalty of the bond.be first approved by the head of the department or establishment, or by authority from him so delegated, and, in any case, the application, approval, or Tecommendation from or by authority of the head of the department, establishment, or office to which the disbursing officer is attached, for advances in excess of the penalty •of the bond, will be regarded by the Secretary of the Treasury and the accounting officers as a certificate to the effect that advances up to the amount named may, with safety, be made and the funds placed to the official credit of the officer named, having regard to the amount of his bond, the character of the officer, the conditions under which he acts, and the other circumstances bearing upon the security of public funds intrusted to his ha;nds. In general, care should be taken not to approve or apply for advances of funds to disbursing officers out of proportion to the needs of the public, business, and so far as possible, requisitions should be made at frequent intervals and In smaller amounts rather than periodically in larger amounts disproportionate to the penalty of the bonds." In the above circular distinction is made between disbursing officers the amounts of whose bonds are required by law to be controlled and fixed by the Secretary of the Treasury and those the amounts of whose bonds are not so required to be controlled .and fixed. In case of the former, the Secretary, in the exercise of his authority, requires that a requisition shall not be passed, if the advance is found to be in excess SECRETARY OF THE TREASURY. 319 of the penalty of the bond or in excess of authority previously given to exceed the penalty of the bond or of general or specific authority given pursuant to law, except upon authority granted by him. In case of the latter, however, the Secretary expresses his willingness to ordinarily waive his specific approval of advances in excess of amount of bond, provided the requisition is signed by the head of department or establishment to which the requisitioner'belongs, or by some one by his authority, who had and still has control over the disbursing bond, and who is better acquainted with the disbursing officer's personal reliability and other considerations which enter into the matter of approval of advances in excess of his bond. The Secretary reserves the right in each case to have "regard to the amount of his (disbursing officer's) bond,, the character of the officer, the conditions under which he acts, and the other circumstances bearing upon the security of public funds intrusted to his hands," so that where exceptional conditions are found to exist he may nevertheless refuse to approve the req^uisition. In view of the apparently plain provisions of paragraph 2 of Treasury Circular No. 195, I do not understand why the heads of departments and establishments who control and fix the penalties of bonds of disbursing officers under their charge should find it incumbent upon them, since the date of the circular, to submit to the Secretary requests for authority for advance of funds in excess of penalty of bonds, or why i t should have been regarded as necessary by the accounting officers of the Treasury in the past, or should be regarded as necessary at the present time by the auditing division of the General Accounting Office, to require in such cases the Secretary's specific approval of a requisition for advance of funds in excess of penalty of bondj, provided the requisition is signed by the proper head of department or establishment or by authority from him so delegated. This office reserves, in the exercise of its authority to approve or disapprove requisitions for funds and countersign accountable warrants, the right to consider the amount of a disbursing officer's bond, availability of funds, the officer's past and present record, and other pertinent facts, such as delinquency in rendering accounts, and if such facts justify, refuse to approve such requisition or countersign such warrant. But ordinarily in these cases, if a requisition involving an advance of funds in excess of penalty of bond is signed by the head of department or establishment, or by his authority, such action may be taken as a statement by him that the amount of the requisition may be safely advanced, and in view of the general waiver by the Secretary of the Treasury, supra, and in the absence of any other specific reason for disapproving a requisition for funds, it may be approved by this office unconditionally. In conformit}^ with the views above expressed, the General Accounting Office will adopt the practice of approving requisitions for advance of funds in excess of penalty of bonds, or of authority to exceed same, that is, where the amount of the requisition plus the balance on hand as shown by the officer's last report exceeds the amount of penalty of bond or of authority to exceed same, as follows, provided the requisitions are otherwise satisfactory and so far as known the amounts requested may. be safely advanced: (1) Requisitions of disbursing officers, the amounts of whose bonds are not subject to the determination of the Secretary of the Treasury, will be approved unconditionally, provided they are duly signed by the heads of departments or establishments concerned, or by delegated authority from them. (2) Requisitions of disbursing officers, the amounts of whose bonds are subject to determination of the Secretary of the Treasury will be approved, subject to the following condition: "This requisition is approved for $ , subject to the approval of the Secretary of the Treasury in the matter of exceeding the penalty of the bond." Respectfully, J. R. MCCARL, Comptroller General. Requisitions for advances of funds in excess of penalty of bonds of disbursing ofScers, the amounts of whose, official bonds are not subject to the determination of the Secretary of the Treasury, should accordingly be sent to the General Accounting Office for approval by that office in accordance with the procedure outlined above. Requisitions for advances of funds in excess of penalty of bonds of Treasury Department and other disbursing officers, the amounts of whose official bonds are subject to determination of the Secretary of the Treasury, require, as heretofore, the approval of the Secretary of the Treasury in the matter of exceeding the penalty of the bond. A. W. MELLON, Secretary. 320 REPORT ON T H E FINANCES. EXHIBIT 55. [Department Circular No. 316. Bookkeeping and Warrants.] REGULATIONS CONCERNING REQUISITIONS OF DISBURSING OFFICERS THE AMOUNTS OF WHOSE BONDS ARE SUBJECT TO DETERMINATION BY THE SECRETARY OF THE TREASURY. TREASURY DEPARTMENT, O F F I C E OF THE SECRETARY, Washington, December 21, 1922. To Heads of Bureaus and Offices, and Chiefs of Divisions, Secretary's Office, Treasury Department, and Others Concerned: The following regulations concerning requisitions of disbursing officers, the amounts of whose bonds are subject to determination by the Secretary of the Treasury, are published for the information and guidance of all concerned: (1) Advances of funds shall not be made to bonded disbursing officers in excess of the penalties of their bonds, except as herein authorized. Whenever such advances are required by tne demands of public business, a written statement of the necessity therefor must be submitted by the head of the bureau or office of the Treasury Department, or Chief of Division of the Office of the Secretary of the Treasury concerned, to the Treasury Department, Division of Bookkeeping and Warrants, for consideration by the Secretary, Under Secretary, or Assistant Secretary in charge of the particular bureau, office, or division, before the said authority will be given. In the case of disbursing clerks of the several departments whose bonds are approved by the Secretary of the Treasury, a similar statement should be submitted to the Treasury Department by the head of the department for which the clerk disburses before such authority will be given. This regulation is not to be construed as requiring additional authority, except upon the execution of a new bond, for advances in excess of penalties of bonds in cases where general authority therefor has been given in pursuance of these regulations. (2) The Under Secretary of the Treasury and the Assistant Secretaries of the Treasury are hereby authorized to grant authority, within certain specifiea limits as to amounts to be fixed by them, to the disbursing officers of the respective bureaus, offices, or divisions of the Secretary's Office under their supervision, to receive advances of funds in excess of their bonds, when application for such authority is made in accordance with the provisions of the preceding paragraph, subject to all statutory limitations on advances. (3) Requisitions for advances of funds may be signed by the heads of the bureaus or offices or chiefs of divisions of the Secretary's Office when the amounts of such requisitions are within the amounts of the penalties of the bonds, or after the granting of authority to receive advances of funds in excess of the penalties of bonds. Copies of the letters requesting and granting such authority will be transmitted by the bureau, office, or division to the General Accounting Office for the information of the proper division of that office. (4) This circular amends and modifies Department Circular No. 65, dated May 29, 1905, in so far as the-latter circular relates to advances of fuiids. A. W. MELLON, Secretary of the Treasury. SECRETARY OF T H E TREASURY. EXHIBIT 321 56. [Department Circular No. 327. Division of Bookkeeping and Warrants.] REGULATIONS AND INSTRUCTIONS GOVERNING THE ISSUE OF DUPLICATE DISBURSING OFFICERS' CHECKS. TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, Washington, D. C, August 15, 1923. REVISED STATUTES OF THE U N I T E D STATES. Section 3646, sis amended: Whenever any original check is lost, stolen, or destroyed, disbursing officers and agents of the United States are authorized, within three years from the date oi such check, to issue a duplicate check, under such regulations in regard to its issue and payment, and upon the execution of such bond, with sureties, to indemnify the United States, and proof of loss of original check, as the Secretary of the Treasury shall prescribe. * -^ -xSection 3647, as amended: In case the disbursing officer or agent by whom such lost, destroyed, or stolen original check was issued is dead or no longer in the service of the United States it shall be the duty of the proper accounting officer, under such regulations as the Secretary of the Treasury may prescribe, to state an account in favor of the owner of such original check for the amount thereof and to charge such amount to the account of such officer or agent. *•»«•* The following regulations governing the issue of duplicates of checks drawn by disbursing officers or agents of the United States are hereby established pursuant to Sections 3646 and 3647 of the Revised Statutes of the United States, as amended: GENERAL PROVISIONS. 1. Advice of nonreceipt or loss.—In the event of the nonreceipt or loss of a check issued by a disbursing officer or agent of the United States, the owner, to protect his interest, should immediately notify the Treasurer of the United States or other drawee, describing the check, stating the name of the disbursing officer or agent by whom, the check was drawn, giving, if possible, its date, number, and amount, and requesting that payment be stopped. 2. Issue of duplicate.—Upon receipt of such request payment of the original will be stopped, and a bond of indemnity will be prepared in the lOeasurer's office and transmitted with a form of affidavit lor execution by the claimant. The bond and affidavit, when duly executed according to instructions, must be transmitted to the disbursing officer or agent who issued the original check. The bond and affidavit will then be indorsed by the officer or agent as having been submitted to him and as being the proof and security upon which he acts in issuing the duplicate check. After the expiration of 30 days from the date of the original check, the disbursing officer or agent will issue a duplicate, which must be an exact transcript of the original, special care being taken that the number and date correspond to those of the original. He will then, without delay, forward the bond, affidavit, and duplicate check to the Secretary of the Treasury, by whom the bond will be approved and the issue of the duplicate, will be authorized if the bond and the information obtained are found satisfactory. Certification of approval shall be made in writing on the papers as well as on the duplicate check. Any dupli- 322 REPORT ON T H E FINANCES. cate issued in pursuance of these instructions, bearing such approval of the Secretary of the Treasury, may, if properly indorsed, be paid subject to the same rules and regulations as apply to payment of original checks; but no duplicate shall be paid if the original has already been paid. 3. Affidavit of nonreceipt or loss.—An affidavit in substantially the form herein prescribed must be executed by the claimant and submitted to the disbursing officer or agent who drew the original check with a bond of indemnity giving the claimant's name and residence in full, describing the checlc, and all indorsements thereon, showing the claimants interest therein and detailing the circumstances attending its nonreceipt or loss, and what action, if any, has been taTcen to stop payment. The affidavit must be made and signed before a notary public or other officer authorized by law to administer oaths, who must certify that he administered the oath. If executed in a foreign country, the affidavit must be made before a notary public or before a United States diplomatic or consular officer or commercial attache. 4. In case the disbursing officer or agent is dead or no longer in the service of the United States.—In case of the loss of a check issued by a United States disbursing officer or agent who is" dead or no longer in the service of the United States, the affidavit and bond required to be furnished by the owner of said check to an officer or agent in the service of the United States, prior to the issue of a duplicate check, should be forwarded to the Secretary of the Treasury, who will refer them to the General Accounting Office for examination and the statement of an account in favor of the owner of said check, as provided for in section 3647 of the Revised Statutes of the United States, as amended. Payment will then be made by a check issued by the Treasurer of the United States pursuant to the statement of account. Whenever such an account shall have been stated and an officer or agent charged with the amount of said lost check, the General Accounting Office will notify the Secretary of the Treasury, in order that the amount of the check, if remaining to the credit of the officer or agent in any United States depositary, may be repaid into the Treasury and carried to his credit and to the credit of the proper appropriation. 5. Recovery of original.—In the event of the recovery of the original check, after the issue of the duplicate, it must be surrendered to the Secretary of the Treasury for cancellation. If the check has been recovered before the issue of a duplicate, the Treasurer of the United States or other drawee should be immediately notified and removal of the stoppage requested. BOND OF INDEMNITY. 6. Names.—The Christian names of the principal and sureties must be written in the body.of the bond in full and so signed to the bond. 7. Witnesses.—The signature of each party must be made in the presence of, two persons, who must sign their names as witnesses. All erasures and interlineations on the bond must be noted above the signatures of the witnesses as having been made before the execution of the bond. SECRETARY OF THE TREASURY. 323 8. Seal.—A seal of wax or wafer must be attached to the signature of the principal and each individual surety. A corporate surety must affix its corjDorate seal. 9. Residence.—The residence and post-office address (giving number and street, where the residence is so designated) of the principal and each surety and witness must be given. 10. Penalty.—^The penalty of the bond should be in even dollars and shall be at least equal to the amount of the check, plus 10 per cent, but in no case shall the bond be in an amount less than $50, unless the amount of the lost check is less than $10, in which case a bond of $10 with one satisfactory surety may be accepted. 11. Sureties.—The sureties on the bond, if individuals, must be two in number and citizens and residents of the United States. Wlien a surety is a woman, it should appear affirmatively that she is single, as a married woman will not be accepted as surety. One corporate surety duly qualified under the act of August 13, 1894, as amended by the act of March 23, 1910, and the regulations of the Secretary of the Treasury prescribed thereunder, will, however, be accepted as sole surety. When the payee resides abroad and it is impracticable to obtain citizens and residents of the United States as sureties, or a duly qualified corporate surety, other sureties may be accepted, proviaed the sufficiency of such sureties is certified by a United States diplomatic or consular officer or commercial attache. 12. Certificate as to sureties.—The sufficiency of individual sureties must be certified by one of the following-named officers: A judge of a United States court; United States commissioner; United States district attorney; United States postmaster; United States marshal; collector of internal revenue; collector of customs; a clerk of a court of record, under seal of the court; executive officer of an incorporated bank or trust company, under his official designation and the seal of the bank or trust company; a notary public, under his seal; a commissioned officer of the Army or Navy of the United States for persons in the military or naval service; or a diplomatic or consular officer or commercial attache of the United States, under his official seal, in case of a payee resident abroad. 13. Corporation as principal.—If a corporation is the principal, the. blank in the first and second lines of the bond must be filled thus: ^^The -— (giving name of corporation), by (an officer duly authorized by resolution of the board of directors).'' The bond must be signed for the corporation by the proper officer, thus: ^^The • (giving name of corporation), by (the authorized officer)," and the seal of the corporation must be affixed. A copy of the resolution of the board of directors authorizing the officer to execute the bond on behalf of the corporation, certified to be correct by the secretary or other officer having custody of the records of the corporation (who, for this purpose, must be some other officer than the officer executing the bond), under seal of the corporation, must be returned with the bond, and must show whether action was taken at a regular or special meeting of the board; if the latter, that all of the directors were notified of the time and place of the meeting and that a quorum was present. 14. Unincorporated companies, etc., as principal.—Where an unincorporated company, society, lodge, or association is principal, a 324 REPORT ON THE FINANCES. copy of the resolution or minutes of the meeting of the proper governing body of the association, under seal of the association (if it has a seal), authorizing an officer or officers to execute the bond must be attached thereto. If the company has no seal, the copy of the resolution should be certified as correct under oath before a notary public or other officer authorized b y law to administer oaths (who must affix his official seal) by the secretary or other competent officer of the association. 15. Miscellaneous.-—If the claimant is an individual doing business under a company title, he must make affidavit t h a t he is the sole owner of the business and execute the bond individually as sole owner of the company named. If a partnership is the claimant, the names of the individuals should be inserted as principals on the bond, thus: ^'John Jones and James Smith, composing the firm of Jones and Smith," or ^^John Jones and James Smith, composing the partnership of John Jones & Co.," and the bond should be signed by each member of the partnership. 16. This circular supersedes Treasury Department Form 1343, dated April 14, 1916, and all previous regulations regarding the issue of duplicate disbursing officers' checks. A. W. MELLON, Secretary of the Treasury. SAMPLE BOND. The following is the manner in which the bond on the opposite page should be filled in and executed, the parts printed in italics being the parts t o be .filled in as the facts of the case m a y require: Know all men by these presents, that we, John S. Doe, of 100 West 67th Street, New Yorh, in the State of New York, as principal, and Richard B. Roe, of 4^7 West 23d Street, New York, in the State of New York, and Robert J. Howe, of 2431 Tompkins Avenue, Brooklyn, in the State of Neiu York, as sureties, are held and firmly bound unto the United States of America in the sum of ninety-nine dollars, lawful money of the United States, to be paid to the United States of America or its agents or assigns; to which payment, well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents. Sealed with our seals, and dated thisfifteenthday of August, in the year one thousand nine hundred and twenty-three. Whereas, the above-named principal represents that check No. 996759, dated December 5,1922, drawn by John R. Brown, symbol No. 14367, on the Treasurer of the United States, payable to the order of John S. Doe for the sum of ninety dollars (^90.00) has been lost, stolen, or destroyed, and that he is the owner thereof and has requested that payment of said original be stopped and that a check in the same amount be issued to replace the same; And whereas, the regulations of the Treasury Department of the United States require the party thus situated to give bond to the United States, with sureties, to indemnify the United States before another check will be issued or any payment be made on account thereof, Now, therefore, the condition of this obligation is such that, if the above-bounden obligors, their heirs, executors, administrators, successors, and assigns, or any of them, shall and do well and truly save harmless and indemnify the United States of America, its officers and agents, of and from any and all liability, loss, claim, and demand whatsoever, arising in any manner by reason of or on account of said original check or the stoppage of payment thereof, or the issue or payment of another check to replace the same, together with all legal costs and interest until paid, without any defalcation or delay, then this obligation to be void; otherwise to be and remain in full force and virtue. SECRETARY OF THE TREASURY. 325 The above-bounden principal hereby consents and expressly agrees to furnish a new bond of indemnity with satisfactory surety (or sureties) whenever hereafter the surety (or sureties) on this obligation, for a n y reason, i n the opinion of the Secretary of the Treasujy, or officer authorized b y him, does not afford the United States sufficient protection and security. T w o WITNESSES (wiTH ADDRESS) TO EACH SIGNATURE: As to John S. Doe: WILLIAM W O O D , R O B E R T SMITH, As to Richard B . Roe: H E N R Y MORGAN, J O H N SMILES, As to Robert J . Howe: JAMES MARKS, H E N R Y JOHNSON, J O H N S . D O E , Principal. [SEAL.] RICHARD B . R O E , Surety, [SEAL.] R O B E R T J. H O W E , Surety, [SEAL.] Address. Address. ' Address. Address. Address. Address. Or witness as to all: WILLIAM W O O D , R O B E R T SMITH, Address. Address. I CERTIFY that each of the sureties named in and who executed t h e above bond is well known to me and has sufficient unincumbered property, liable to execution, to cover the penalty thereof. JOHN MOORE, Collector Int. Rev., 32d Dist., New York. (Title.) (See instructions for execution on previous page.) TREASURY DEPARTMENT. Departmental Stock Form'2244. BOND OF INDEMNITY—DUPLICATE DISBURSING OFFICER'S CHECK. Know all men by these presents, that we - of , in the State of . as principal _ _, and of , in the State of . _ -. and , of in the State of , as sureties, are held and firmly bound unto the United States of America in the sum of dollars, lawful money of the United States, to be j)aid to the United States of America or its agents or assigns; to which payment, well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly b y these presents. Sealed with our seals, and dated this day of , in the year one thousand nine hundred and Whereas the above-named principal represents that check No . , dateci __. - - - - , drawn by . , symbol No. on the Treasurer of the United States, payable to the order of for the sum of dollars and cents ($ _ - . ) , has been lost, stolen, or destroyed, and that he is the owner thereof and has requested that payment of said original be stopped and that a check in the same amount be issued to replace the same, 326 REPORT ON THE FINANCES. And whereas, the regulations of the Treasury Department of the United States recjuire the party thus situated to give bond to the United States, with sureties, to indemnify the United States, before another check will be issued or any payment be made on account thereof. Now, therefore, the condition of this obligation is such, that if the above-bounden obligors, their heirs, executors, administrators, successors, and assigns, or any of them, shall and do well and truly save harmless and indemnify the United States of America, its officers anci agents, of and from any and all liability, loss, claim, and demand whatsoever, arising in any manner by reason of or on account of said original check or the stoppage of payment thereof, or the issue or payment of another check to replace the same, together with all legal costs and interest until paid, without any defalcation or delay, then this obligation to be void; otherwise to be and remain in full force and virtue. The above-bounden principal hereby consents and expresslv agrees to furnish a new bond of indemnity with satisfactory surety (or sureties) whenever hereafter the surety or (sureties) on this obligation, for any reason, in the opinion of the Secretary of the Treasury, or officer authorized by him, does not afford the United States sufficient protection and security. Two witnesses (with address) to each signature: - . -. _ - Principal, [SEAL.] Surety. [SEAL.] Surety. [SEAL.]. I certify that each of the sureties named in and who executed the above bond is well known to me and has sufficient unincumbered property, liable to execution, to cover the penalty thereof. (Title.) A judge of United States court. United States commissioner. United States district attorney. United States marshal, collector of internal revenue, collector of customs. United States postmaster, clerk of court of record under the seal of the court, an executive officer of an incorporated bank or trust company, under his official designation and tne seal of the bank or trust company, or a notary public under his seal, or a commissioned officer of the Army or Navy of the United States for persons in the military or naval service, or a diplomatic or consular officer of the United States, under his official seal, in case of a payee resident abroad, may execute this certificate. This action should not be taken 3n in a perfunctory manner, but only after aftei he has knowledge of the financial standing of the isureties. obtained accurate knowled2:e SECRETARY OF THE TREASURY. 327 Departmental Stock Form 2244. No BOND OF INDEMNITY FOR DUPLICATE DISBURSING OFFICERS' CHECK. and sureties to the United States. Check No drawn by on the Treasurer of the United States (Make appropriate change when not so drawn.) on the , 192.., payable to day of the order of for the sum of $ : Duplicate issued on the within bond and affidavit hereto attached , 192... 1 (Official disbursing title.) (Address.) OFFICE OF THE SECRETARY OF THE TREASURY, to . . . . , 192... Approved and duplicate check certified, payable Secretary. By. :. Chief, Division of Bookkeeping and Warrants. I The disbursing officer will fill up and sign the above brief, and give his official disbursing.title and address. AFFIDAVIT. State of County of ., ss. Personally appeared before me, the undersigned, a in and for said county and State, of : (Post-office address.) (Name of affiant.) (Street and No. if in town or city.) county of , . . . , State of , who, after being duly sworn, deposes and says in relation to the check described in the foregoing bond, as follows: [Here state all information required in paragraph 4, circular No. 327.] Sworn^to and subscribed before me this .:....\ ,192... (Signature of affiant.) day of [SEAL.] ^ (Official character.) 1 Thisftffidaviltmust be executed before an officer authorized to administer oaths generally. 328 REPORT ON THE FINANCES. EXHIBIT 57. [Department Circular No, 54, revised.] REGULATIONS AND INSTRUCTIONS GOVERNING THE ISSUE OF DUPLICATE TREASURY WARRANTS, TREASURER'S CHECKS, AND INTEREST CHECKS. TREASURY DEPARTMENT, O F F I C E OF THE TREASURER OF THE U N I T E D STATES, Washington, D. C , February 15, 192S. The following regulations governing the issue of duplicates of Treasury warrants, Treasurer's checks, and interest checks are hereby established: G E N E R A L PROVISIONS. 1. Advice of nonreceipt or loss.—In the event of the nonreceipt or loss of a warrant or check, the owner, to protect his interest, should immediately notify t h e Treasurer of the United States in writing, describing the warrant or check, giving, if possible, its date, number, and amount, and requesting that payment be stopped; 2. Issue of duplicate.—Upon receipt of such request payment of the original will be stopped, and a bond of indemnity will be prepared in the Treasurer's office and transmitted with a form of affidavit for execution by the claimant. Upon the return of the bond and affidavit duly executed according to instructions, and the approval of the bond by the Solicitor of the Treasury, the Treasurer, if satisfied as to the nonreceipt or loss of the original warrant or check, will authorize the issue of a duplicate warrant or check; provi(led, however, that no duplicate will be issued until 30 days shall have elapsed from the date of the notice of nonreceipt or loss of the original warrant or check. . 3. Affidavit of nonreceipt or loss.—^An affidavit in substantially the form prescribed must be executed by the claimant and submitted to the Treasurer with the bond of indemnity, giving his name and residence in full, describing the warrant or checlc, and all indorsements thereon, showing his interest therein and detailing the circumstances attending its nonreceipt or loss. The affidavit must be made and signed before a notary public or other officer authorized by law to administer oaths, who must certify that he administered the oath. If executed in a foreign country, the affidavit must be made before a notary public or before a United States diplomatic or consular officer or commercial agent. 4. Waiver of bond and affidavit.—Where the principal of a lost or destroyed warrant or check does not exceed $20, the Treasurer m a y waive the filing of an affidavit or bond of indemnity, or both, in his discretion. 5. Recovery of original.—In the event of the recovery of the original warrant or check, after the issue of the duplicate, it must be surrendered to the Treasurer of the United States for cancellation. If the warrant or check is recovered before the issue of a duplicate, the Treasurer should be immediately notified and th.e removal of the stoppage requested. SECRETARY OF THE TREASURY. 329 6. Names.—The Christian names of the principal and sureties must be written in the body of the bond in full and so signed to the bond. 7. Witnesses.—The signature of each party must be made in the presence of two persons, who must sign their names as witnesses. All erasures and interlineations on the bond must be noted above the signatures of the witnesses as having been made before the execution of the bond. 8. Seal.—^A seal of wax or wafer must be attached to the signature of the principal and each individual surety. A corporate surety must affix its corporate seal. 9. Residence.—The residence and post-office address (giving number and street, where the residence is so designated) of the principal and of each surety and witness must be given. 10. Penalty.—The penalty of the bond should be in even dollars and at least double the amount of the missing warrant or check, but in no case less than $50, except that if the bond is executed by a corporate surety, as provided in the succeeding paragraph, the penalty of the bond should be at least equal to the amount of the warrant or check, plus 10 per cent, but in no case less than $50. 11. Sureties.—The sureties on the bond, if individuals, must be two in number and citizens and residents of the United States. When a surety is a woman it should appear whether she is married or single, as a married woman will not be accepted as surety. One corporate surety duly qualified under the act of August 13, 1894, as amended by the act of March 23, 1910, and the regulations of the Secretary of the Treasury prescribed thereimder, will, however, be accepted as sole surety. When the payee resides abroad and it is impracticable to obtain citizens and residents of the United States as sureties, or a duly qualified corporate surety, other sureties maj^ be accepted by the Treasurer in his discretion, provided the sufficiency of such sureties is certified by a United States diplomatic or consular officer or commercial ag6>nt. 12. Certificate as to sureties.—The sufficiency of individual sureties must be certified by one of the following-named officers: A judge of a United States court; United States commissioner; United States district attorney; United States postmaster; United States marshal; collector of internal revenue; collector of customs; a clerk of a court of record, under seal of the court; executive officer of an incorporated bank or trust company, under his official designation and the seal of the bank or trust company; a commissioned officer of the Army or Navy of the United States for persons in the military or naval service; or a diplomatic or consular officer of the United States, under his official seal, in case of a payee resident abroad. 13. Corporation as principal.—If a corporation is the principal, the blank in the first and second lines of the bond must be filled thus: '^ The (giving name of corporation), by (an officer duly authorized by resolution of the board of directors).'' The bond must be signed for the corporation by the proper officer, thus: '^The (giving name of corporation), by (the authorized officer)," and the seal of the corporation must be afiixed. A copy of the resolution of the board of directors authorizing the 330 ^ REPORT ON THE FINANCES. officer to execute the bond on behalf of the corporation, certified to be correct by the secretary of the corporation (who, for this purpose, must be some other officer than the officer authorized to execute the bond), under the seal of the corporation, must be returned with the bond, and must show whether action was taken at a regular or a special meeting of the board; if the latter, that all of the directors were notified of the time and place of the meeting and that a quorum was present. 14. Unincorporated companies, etc., as principal.—Where an unincorporated company, society, lodge, or association is principal, a copy^ of the resolution or minutes of the meeting of the proper overning body of the association, under seal of the association (if it ave a seal), authorizing an officer or officers to execute the bond must be attached thereto. If the company have no seal, the copy of the resolution should be certified as correct under oath before a notarypublic or other officer authorized by law to administer oaths (who must affix his official seal) by the secretary or other competent officer of the association. 15. Miscellaneous.—If the claimant is an individual doing business under a company title, he must make affidavit that he is the sole owner of the business and execute the bond individually as sole owner of the company named. If a partnership is the claimant, the names of the individuals should be inserted as principals on the bond, thus: ''John Jones and James Smith, cornposing the firm of Jones and Smith," or ''John Jones and James Smith, composing the partnership of John Jones & Co.," and the bond should be signed by each member of the partnership. 16. This circular supersedes Department Circular No. 54 of February 7, 1916, and No. 18 of March 1, 1904. The Treasurer of the United States, with the approval of the Secretary of the Treasury, may withdraw or amend at any time or from time to time any or all of the provisions of this circular. g FRANK W H I T E , Treasurer of the United States. Approved: RICHARD R . MCMAHON, Solicitor of the Treasury. Approved: A. W. 'MELLON, Secretary of the Treasury SECRETARY OF THE TREASURY. 331 E X H I B I T 58. [Department Circular No. 86, amended and supplemented. Treasurer's Office. (Second edition.).] i I N S T R U C T I O N S R E L A T I V E TO D E P O S I T S O F G O L D COIN A N D G O L D C E R T I F I C A T E S F O R C R E D I T I N G O L D F U N D ACCOUNT W I T H F E D E R A L R E S E R V E BOARD AND PAYMENTS THEREFROM U N D E R ACT O F J U N E 2 1 , 1 9 1 7 . TREASURY DEPARTMENT, OFFICE OF THE SECRETARY, Washington, D. C, August 15, 192S. To the Treasurer of the United States, Superintendents of the Mints at Philadelphia, Denver, and San Francisco, and the Assay Office at New York, and the Federal Reserve Panics: (1) The act approved June 21, 1917, amending the Federal reserve act, contains the following provisions: That the Secretary of the Treasury is hereby authorized and directed to receive deposits of gold coin or of gold certificates with the Treasurer or any assistant treasurer of the United States when tendered b y any Federal reserve bank or Federal reserve agent for credit to its or his account with the Federal Reserve Board. The'Secretary s h a i r prescribe b y regulation the form of receipt to be issued b y the Treasurer or Assistant Treasurer to the Federal reserve bank or Federal reserve agent making the deposit, and a duplicate of such receipt shall be delivered to the Federal Reserve Board b y the Treasurer at Washington upon proper advices from any assistant treasurer t h a t such deposit has been made. Deposits so made shall be held subject to the orders -of the Federal Reserve Board and shall be payable in gold coin or gold certificates on the order of the Federal Reserve Board to any Federal reserve bank or Federal reserve agent at the Treasury or at the Subtreasury of the United States nearest the place of business of such Federal reserve bank or such Federal reserve agent: Provided, however, That any expense incurred in shipping gold to or from the Treasury or subtreasuries in order to make such payments, or as a result of making such payments, shall be paid b y the Federal Reserve Board and assessed against the Federal reserve banks. The order used by-the Federal Reserve Board in making such payments shall be signed b y the governor or vice governor, or such other officers or mem bers as the bo^ard may by regulation prescribe. The form of such order shall be approved b y the Secretary of the Treasury. The expenses necessarily incurred in carrying out these provisions, including the cost of the certificates or receipts issued for deposits received, and all expenses incident to the handling of such deposits shall be paid b y the Federal Reserve Board and included in its assessments against the several Federal reserve,banks. (2) The following regulations are prescribed in pursuance of the ^bove provisions of law, as modified by the Act approved May 29, 1920, autho>rizing the discontinuance of the ofiices of the several Assistant Treasurers of the United States and the transfer of their duties and functions, in the discretion of the Secretary of the Treasury, to the Treasurer of the United States, the Mints and Assay Offices •of the United States, and the Federal Reserve Banks: (a) Deposits of gold coin and/or gold certificates may be made by Federal reserve agents or by Federal reseve banks (either direct or through their branches) for credit in the Gold Fund account of the Federal Reserve Board on the books of the Treasurer of the United States with the Superintendents of the coinage mints at Philadelphia, Denver,, and San Francisco and the Superintendent of the Assay Office at New York. The amount of each such deposit shall be 1 The first edition of this circular was issued June 26 ,1917. It is entirely superseded by this edition .affective August 15,1923. 62166—FI 1923 23 . :, 332^ REPOiElT ON T H E FINANCES. credited in the Superintendent's daily transcript of the Treasurer's account on Form 17 supported by certificate of deposit on Form 1701, the original being forwarded with the transcript in support of the credit, and the duplicate given or sent to the depositor. Upon receipt of each deposit, immediate telegraphic advice will be given by the Superintendent to the Treasurer of the United States, who will make appropriate entries in his general account and deliver to the Federal Reserve Board a receipt showing the amount credited in the Gold Fund account of the Board on his books, executed in substantially the following form: TREASURY OP THE U N I T E D STATES, ..: , 192.. Received from the Federal Reserve .\ at the sum of dollars, in gold coin or gold certificates, for credit in the Gold F u n d account with the Federal Reserve Board. This receipt is issued under authority of section 8 of the Act approved June 21, 1917, amending the Federal Reserve Act, and the deposit made is held subject to the order of the Federal Reserve Board in accordance with the provisions of said act. Gold certificates received by the superintendents of the coinage mints and the Assay Office at New York for credit in the Gold Fund account with the Federal Reserve Board shall not be paid out except upon releases granted.by the Secretary of the Treasury or the Treasurer of the United States. (6) Deposits of gold coin and/or gold certificates may be made also with the Treasurer of the United States by Federal reserve agents and Federal reserve banks (either direct or through their branches) for credit in the Gold Fund account of the Federal Reserve Board on the books of the Treasurer, for which receipts will be delivered by the Treasurer to the Federal Reserve Board, executed in the form specified in subparagraph (a) of paragraph (2) above. (3) The following form of order for use by the Federal Reserve Board in transmitting funds to Federal reserve banks or Federal reserve agents has been approved: WASHINGTON, '.] 192.. T R E A S U R E R OP THE U N I T E D STATES. Pay to I - . =. : : • dollars, in gold coin or gold certificates, out of deposits made with the Treasurer of the United States under authority of the Act approved June 21, 1917. FEDERAL RESERVE BOARD, By Assistant Secretary. Countersigned: . Governor {or other duly authorized officer or.member). . (4) The Federal Reserve Board should file with the Treasurer of the tJnited States a copy of any by-laws or regulations prescribed by it authorizing any of i t s officers or members other than the governor or vice governor of the board to execute such orders, and specimen signatures should be filed with the Treasurer of any officers or members