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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 fo Q March 15, 1923
rD L
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.
Ir—
From
^
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. 4
1,1877
Mar. 10 1877
),
Mar
J, 1881
Sept. 20, 1881
),
Nov. 14, 1881
t,
5,1884
Sept. 25
L,
Oct. 31 1884
1,1885
Mar. 4
Mar. 8 , 1885
J
Apr. 1,1887
Mar. 4
1,1889
Mar. 7 1889
J,
Feb. 25 1891
),
Mar. 4
1,1893
Mar. 7,
1,1893
Mar. 4 1897
V,
Mar. 6 1897
),
Sept. 15 1901
),
Feb. 1,1902
Mar. 4
1,1907
Mar. 8 1909
?,
Mar. 6 1913
),
Dec. 16 1918
>,
Feb. 2 1920
J,
Mar. 4
1,1921
Aug. 3;,1923

To—
,,
Dec. 8,1860
:,
Jan. 14, 1861
,,
Mar. 6,1861
-,
June 30, 1864
,
Mar. 3,1865
.,
Apr. 15, 1865
.,
Mar. 3,1869
,1873
Mar. 16,
:,
June 3,1874
r,
June 20, 1876
;
Mar. 3,1877
.,
Mar. 9,1877
>,
Mar. 3, 1881
;
Sept. 19,1881
.,
Nov. 13,1881
:,
Sept. 4, 1884
.,
Oct. 30,1884
.,
Mar. 3,1885
,1885
Mar. 7,
,1887
Mar. 31,
,
Mar. 3,1889
.,1889
Mar. 6,
,1891
Jan. 29,
,
Mar. 3,1893
s
Mar. 6,1893
,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
* Became Undersecretary November 20, 1923 .
8




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.

Increase
(in millions of
dollars).

25
35

323

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
1,000
550,
600,
840
1,000
450,
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.
All classes.
1916........
1917........
1918
1919
1920....
1921

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
Act and
tax certif- special cer- Treasury
(war)
icates of tificates of
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
• 414, 869,067
2 1,869,067
'103,104,349
1, 104,349
103, 201,400
084,740
2 17,084,740
668, 779,900
17, 775,037
2*i44,'56i,'687
355,
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, T I 7,379,705,350
AO

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

Percent.
4.83
4.96
4.82

1923:

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

1922.

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' OS T H E
JT

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.

^

.

^J j
4
^
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

72,016,284

.-.

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.
$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. 15,1923
Jan.
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
H e l d as
and
amount
amount
O w n e d . collat- T o t a l . ! o u t - O w n e d . collat- T o t a l .
Treasury
outeral .2
eral.
notes' out! standstandstanding.
ing.
ing.

1919. '
1,294

2,170

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

1920.

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 . . . :

1,072

.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

1,070

9.61
10.91
11.79

20,240 ;.

J u n e 30
O c t . 31
Dec.31

2

10.72

876

19,581
19,528
19,512

Dec. 31

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

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

$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
488.76
. 403,
164, 790.29
332, 145.49
?68, 329. 88
377, 421.12

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

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

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

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

8,351,885.19

F e d e r a l reserve district.

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.

358,221.43

Total.

Total..'

April 24 t o
J u n e 30, 1917.

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:
Fiscal year
1921.

$468,318,273
27,345,282

$284,089,550
49,021,975

$118,447,521
4,893,544

505,021,903

Net imports

Fiscal y e a r
1923.

S638,559,805
133,537,902

O old i m p o r t s
Gold e x p o r t s

Fiscal year
1922.

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 O S T H E FINANCES.
Dr

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: .
Gold coin.

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.,
certificates.

$417,126,192
412,894,448
429,192,179
410,102,015
403,929,535
397,980,664
396,737,411

Month.

$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

Field.

Juno 30, 1923.
Total.

Departmental.

Field.

Total.

Increase (-J->
or decreaseC—)^

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

Total

51
11
81
69
13
7,191
225
243
11,687

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
number
Prom
July 1, To June July 1, act Sept. retired.
To June 1922, to
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.

..

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

Customs
Coast Guard
Public Health
Mint and Assay
Internal Revenue
Custodian
Subtreasury

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

Estimated, fiscal Estimated, fiscal
year 1924.
year 1925.

S370,939,122.00

$270,939,146.06

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

Total.
Expenditures:
Ordinary
__._.
Public debt chargeable against ordinary receipts
__
Other public debt i
Net balance in the general fund at close of fiscal
year

$272,105,513.00

4,007,135,4.81.00
4,089,738,338.00

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

Total.

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 revenue:
Internal

$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

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

i

23,045,000.00
158,976,762.00
113,343,000.00
29,39^,325.00

O

(2)

.0) .

820,733,853.07
4,007,135,480.56

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
12,000,000.00
13,526,587.00

$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

$8,000,000.00
6,000,000.00

^? 90(1 fi'*? t^OO Ifl

OA

S^ n^'ii nflo O ^ no
!
A

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

52j

^^ ft! '^ Rno 4fio mi

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




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

Total public debt receipts.

"],"4i6,'3.33,'500

ie," 666,'666

194>357,200
74,414,564
246,107

t?d
•
7i
^

8

313,871,925
35,000,000
50,000

4,703,412,6S1

^

25,000,000
269,277.875
20,000; 000
50,000

] 6, 000,000
50,000,000

2,740,601,375

2, 049, 491,125

H

23,045,000

23,045,000

w

137,232,975
6.000,000
6; 000,000

$297,144, .300
37; 854,500

6^, 752,950
6,56*^, 550
10,815,300
554, 891.

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

4,089,738,338

1,107,883,400

1,862,703,800

210,823,852

429,639,600

X

20,000,000
200,000, 000
1,642,70.1,800

4,300,562,190

1,537,523,000

-

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

137,924,325
10,000,000
6,000,000

$284,018,800
32,140,000

402,850,491.

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

93,965,900
509,184,800

528,157,5S7

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.

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

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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...,

6, 417, 500.00

48,947,960.00
386,000.00

12,858,050.00
45,500.00

382,850.00

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

• 2, 522, 250.00 . 42,626, 550.00
450,000.00

^

- 500. 00

7,. 500.00

•3,000.00

1,300. 00

1,000.00

2,500.00

> 800,850.00
,

TotaL

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

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

2,290,051,210.00
O
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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
419.49
17, 663,
233.70
J 892,

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

243,988,968.84

310,472,948.03

301,847,746.20

286,965,616.92

2,482,476.33

29,974.01

1,949, 422.13

2,135,867,563.14
991,000,759.24

O
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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

30,539,700.00
160,400.00
283,900.00

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

Decrease 1923.

$204,644,326.47
$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

Decrease 1923.

$188,110. 59

47,296.85
156,263.38'

$30,031.40

286,116.8S

835,229.48

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

•

1,121,346.36

7,702,265.66

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

Total miscellaneous receipts, inl^ cludine Panama Canal and sales
of pubUc lands
:
,
Total.




$4,058,991.64
$2,423,403.62

1,958,032.31

324,929.69

391,668.95

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
11,272.63

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

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

4,103,596,334.58

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

146,692.21

3,847,017,423.64

Increase, 1923.

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

$4,229.69

14,877.22
363,965.02

84,899.76
822,600.70
2 6,981,425.05

$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

Decrease, 1923.

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

'2,905.24
'"67," 989." 78

402,611

1 107.74

(2)

$984,378.45

343,440.00

779.14

78,308,739.72
398,526.51

157,354.
86,145,816.
318,612.

•

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

8 13,235,000.00

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
,

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

$40,250.20
$579,500.00
329.268.50

2,248,815.36

578.08

578.08

295,937.29

295,937.29

4,992,408.69

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

94,852.59

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)

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 Economics.
^g^^ < See ^
Bureau of--- Markets and 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.

Fiscal year 1925, Fiscal year 1924.
$493,000,000

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




$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.]

1925 estimates,
including permanent annual.

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

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.
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.

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

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

Amount outstanding.

37,691,350.00

$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^.
227,000,000.00
197,233,500.00
154,252,000.00
321,196,000. 00
189,8.^3,500.00

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

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

Series TS-1923
Series TD-1923
Series TS2-1923
Series TM-1924
Series TD2-1923

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

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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...

Q

/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-.
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..

w

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.

O

.do.
-do-

Payable June 16,1924.,
PayableSept. 15,1924.
Payable Mar. 15,1925..
PayableDec. 15,1925..
Payable June 15,1925..
Payable Mar. 15,1926..

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 C S shown above, June SO, 1923—Continued.
L

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

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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
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

o

3,479,069

C. Total interest-bearing securities to account for (Items A and B-4)

in

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
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

>

in

21,700,478

B. Interest-beartng ecuritles received from Burea^ of Engraving and Printing during the fiscal year 1923 (see Exhibit 9).

O

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.




^

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
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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

662,150 61,344,050

2,695,400

66,950

295,450,400

334,250

w

471,107

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

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

16,352,000
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

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




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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

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
7,323,073,300

."

I V . T o t a l securities retired d u r i n g fiscal year 1923

12,748,399,750

in

1,860,500
18,029,000

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
$34,357,050
13,527,750
2,611,680
898,660
3,747,700
1,7.38,300
769,000

$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

"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

$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

$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

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

$100,000

$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

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
...•

Total.

21,308,850

27,847,400

75,500
500
147,000

490,000

50,000

100,000

93,835,750

53
39
126
3
355
30
681
30
1

1,318

95,744,750

in

758,771

1,909,000

.

40,000

474,589
44,938

38,000
1,000

50,000

100,000

230,959
8,285

57,120,050
11,669,900

$100,000

$22,880,100
2,165,700

50,000
34,000
155,000
11,000
439,500
45,500
1,135,000

$150,000

760,089

o
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H

o

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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. j n.^^n , nnn
f
....v v «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

oi '
P
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

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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
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

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

1,422,870

$11,973,899.50
4,426,516.50
978,963.60
517,519.10
1,320,344. 25
304,932.00

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

342,064,300
8,337,700
128,808,250
879,450

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
147,902,600

4,258,884,840

252,363,620

pi

4,609,188

147,902,600

105,880

849,320,540

7,776
2,762
966
551
1,728
99

$115,650
1,199,200

11,421,940

$598,763,900
111,372,950
48,948,180
25,876,060
43,923,800
10,166,400

1,078,200

$598,648,250
110,173,750
48,948,180
25,875,920
44,088,100
10,164,400

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.

16,354,000

o
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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. 2 > per cent postal savings bonds (first to twenty-fourth
v
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

o

3,088,669

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

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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

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

.

;

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

133,983,050

173,844,800

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

468,785,300
164,050,000
438,598,500
314,512,300

471,820,400

in
43,032 500
57,539,000
71,652,000
63,526,500
80,963,000

63,315,500
71,933,000

133,983,050

-1,000
100,000

451,536,000

686,860,500
11,850,618,930

817,901,450

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

3,310,195,750

4,548,976

768>i75

46,442
40,855
33,390
27,201
37,155

100,000
100,000
1,000
•5,000
5,000
5,000
349,000

85,900,000

271,277,500
192,295,000

23,911

74,263
52,393

1,000
100,000

1,304,433

1
1
1

72,266,000
202,525,500
191,116,500
160,024,000
142,317,000
.\

178,791
123> 777

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

>
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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

500,033,750

1,922,293,200

IP

284.500

1,422,259,450

3,037,626

55,809
.37,980

O
H

W

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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

to

857,660,800

643,026,000

3,*io6"
3,967,000

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

O
O

w

4,939,252,500

a

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

10,864,123,250

>

200,000

2,8,58,602,200

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

156,000
5,087,719,500

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

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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

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).

Total.

1,199,200

34,241,400

12,328,550
100

34,357,050

13,.527,850

$883,840,470

29,760

115,650

$11,830,440

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

pi
H.

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

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

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

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.

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

.

98,485,450
151,123,850
378,080,050
31,675,050
219,5.50

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

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

o

14,131,750
112,776,150
2,290,550

460,871,600

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

$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

2,695,460

250,000
1,723,850
500

2,857,250
500

..

6,500
36,050

6,366
50

8,666

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

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
,

1,000

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

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(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

..

10,000,000
103,000

3,215,300
300

25,000

96,357,100

94,155,800

857,660,800
3,100

64,003,000 163,866,100

75,516,100 155,398,900
CO
O
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

1,000,000
32,500

1,800,000
60,653,600

37,916,700

o

10,815,300
132,368,200

28,000

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

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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

>

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S, 279,000

1,721,000

90,690,000

69,780,000

259,393,000

149,999,000

25,349, .500

1,860,500

74,000,000

3,089,666, m

18,029,000

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

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

1,000

;




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

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

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.. .

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

>
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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

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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.
F i r s t 4's.

$568,318,450

•
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
21,432,924,700

5,737,909,500

$7, 570, 550
542,828,550

F i r s t second
4i's.

Redeemed to
J u n e 30, 1923.
Second 4^'s.

$568,318,450
550,397,100
3,492,150

V i c t o r y 3 i ' s . V i c t o r y 4f's.

.$3,492,150

424,886,750
505,068,900

Total

First 4 f s .

$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.




>
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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. 15,1924
....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

Mar. 15,1923
Sept. 15,1923

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

y<

o

^^

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

>

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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
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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
maturity.

15,1922
15,1922
15,1923
15,1922
15,1923

Mar. 15,1923
Sept. 35,1923
do..
Dec. 15,1923
....do

Chicago.

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

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

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

Grand total.




Rate.

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

Kansas
City.

Minneapohs.

8,133,500

D a t e of
issue.

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

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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
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

D a t e of issue.

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
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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.

Treasury
Department.

Chicago.

Rate

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




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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.

$134,942,800

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

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

24,625,200
1.633.200
1; 737; 600
1, 719,000
562,500
966,700

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

.

34,705,300
3. 544.400
2, 219; 000
5,602,000
3, 808,800
3,112,500

DaUas.
.$16,076,800

.

$33,369,300

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)

$55,300,100

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.




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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

100,000
200,000
200,000
100,000

4
4
4

1,000,000
700,000
400,000
400,000
200,000
200,000

425,000

425,000

4
4
4

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^

*

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

250,000
250,000
10,046,000

Total

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

. 236,000
180,000
300,000
250,000

4^
4i

90,000

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.....

$45,129,150. 00

$5,537,200.00

$50,666,350.00

$483,747. 37

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

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

998,600.00

6,675,750.00

53,888. 75

50,806,300.00

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

6,535,800. 00

57,342,100. 00

537,636.12

7,900. 00

15,250. 00

7,350. O J
O

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

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..

.

.

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

4.1.10

41.10

200,150. 00

T o t a l fiscal year




Total.

65,700.00
1,603,850. 00
1,618,400. 00
2,388,200. 00
1,000. 00

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

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

Registered.

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
r e p o r t . Copies of the circular may be obtained on application to y - Public Debt Service, .„
* *
. ^ . ' . . . . . . the ^ ^.- ^ ^ . ^ . Treasury
report. Copies ' "
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 Depart%
ment 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



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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



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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



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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. per cent notes, payable December 15, 1927.
V
(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 O T THE FINANCES.
N

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.

Total.

$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

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

$40,000.00

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.

Final.

Total.

$757,677.95
36,343.49
2,891,206,26
12,679.24
36,899.06

.97,500.00
25,000.00
40,000.00

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
$18,000.00

$757,677.95
36,343. 49

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 <e Northern R. R. Co
f
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 author^
ized 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 follow^
ing 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

picpl
rnia.
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
Registra- of registered
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 OP.
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.
First
year.

.:

Seventh.
Eighth
Ninth .
Tenth
Eleventh
T welfth

Third
year.

Fourth
.year.

Fifth
year.

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

First
Second
Third
Fourth
Fifth
Sixth

Second
year.

$20.00
20.05
20.10
20.15
20.20
20. 25

Month.

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.
First
year.

Month.

First
Second .
Third
Fourth
Fifth
Sixth

...*...

Seventh
Eighth
Ninth . . . .
Tenth
Eleventh.
Twelfth

.

. .

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
. .

:

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 . .




Third
year.

Fourth
year.

Fifth
year.

$800
802
804
806
808
810

.

Seventh
Eighth
Ninth
Tenth
Eleventh
Twelfth

Second
year.
$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.

the
guested by the holderinoffavor surrendered War-Savings Certificates,
ash adjustments, if
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. * -^ -x
Section 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,
Surety.

-

[SEAL.]

Surety.

-. _

[SEAL.]

[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 in a perfunctory manner, but only after he has
3n
aftei
knowledge
obtained accurate knowled2:e of the financial standing of the isureties.




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
who are to sign such orders.
(5.)_.To4he extent that payments are not made concurrently with
transactions, the Treasurer should open and maintain a sepaerate
account of all expenses incurred in shipping gold to or from the
Treasury, the coinage mints, or the assay office at New York, in



SECRETARY OF THE TREASURY.

333

order to make payments or as a result of making payments under
authority of this section and of any other expenses incident thereto.
An account for such expenses not currently paid should be rendered
at the end of each quarterly period to the Federal Reserve Board for
reimbursement.
A.

W.

MELLON,

Secretary of the Treasury.
EXHIBIT

59.

[Department. Circular No. 55, amended and supplemented.] ^

ISSUE, EXCHANGE, AND REDEMPTION OF MONEY.
TREASURY DEPARTMENT,
OFFICE OF THE TREASURER OF THE U N I T E D STATES,

Washington, August 25, 1923.
The following regulations govern the issue, exchange and redemption of the paper money and the gold, silver, and minor coin of the
United States, and the redemption of national-bank notes, Federal
reserve notes, and Federal reserve bank notes. Under authorization in the act approved May 29, 1920, the Secretary of the Treasury
transferred to the Federal reserve banks and branches the functions
performed by the former Assistant Treasurers of the United States
in connection with the issue, exchange, and replacement of United
States paper currency and coin and the receipt for redemption of
national-bank notes and Federal reserve bank notes. Except for
the duties in this respect to be performed by the Treasurer of the
United States, as may be indicated from time to time by the Secretary of the Treasury, distributions of available supplies of United
States paper currency and coin, exchanges and replacements thereof,
and payments on account of redemptions of currency and coin will,
so far as practicable, be effected through the Federal reserve banks
and branches. Federal reserve banks and branches have been
instructed by the Treasury to make an equitable and impartial
distribution of available supplies of United States paper currency
and coin in all cases, and applications therefor should be made to
the Federal reserve bank or branch of such bank located in the same
district with the applicant. Distributions of new gold, silver, and
minor coin will not be made by the Treasury so long as there are
available sufficient stocks of circulated coins in the Federal reserve
banks and branches or in the Treasury offices.
I.—ISSUE OF UNITED STATES PAPER CURRENCY.

1. All current issues of new United States paper currency are
made by the Treasurer of the United States in the form of United
States notes (greenbacks), gold certificates and silver certificates.
2. United States notes are issued in value equal to the unfit notes
destroyed in order not to reduce the amount outstanding below the
figure fixed by law.
1 The last edition of this circular was dated February 12,1916. It is entirely superseded by this edition >
effective August 25,1923.
s




334

REPORT ON THE FINANCES.

3. Gold certificates are issued against deposits of gold coin with
the Treasurer or with the Federal reserve banks and branches,
deposits of gold bullion or foreign gold coin with the mints and assay
offices, or against available gold in the general fund of the Treasury.
Gold certificates may also be obtained in payment of obligations of
the United States payable in gold in payment of checks issued by
the mints and assay offices of the United States for deposits of gold
bullion and foreign gold coin, in exchange for other forms of United
States paper currency, or in the ordinary course of Government
payments when paid out by the Treasurer or the Federal reserve
banks.
4. Silver certificates are issued against deposits of standard silver
dollars or available silver dollars in the general fund of the Treasury,
and may be obtained in exchange for other forms of United States
paper currency or in the ordinary course of Government payments,
when available.
I I . — I S S U E OF GOLD COIN.

5. Gold coin is issued for deposits of gold bullion, gold certificates,
United States notes, or Treasury notes of 1890, and in payment of
other obligations of the United States payable in gold.
III.—ISSUE

OF

STANDARD SILVER DOLLARS, SUBSIDIARY
COIN, AND MINOR COIN.

SILVER

6. Standard silver dollars are issued in redemption of silver certificates or Treasury notes of 1890. Subsidiary silver coin (halves,
quarters, and dimes) and minor coin (1-cent bronze and 5-cent
nickel) are is