The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
ANNUAL REPORT OF THE
SECRETARY OF THE TREASURY
ON THE STATE OF THE FINANCES
FOR FISCAL YEAR ENDEDJUNE 30,1937
l5;iifDERAL RESERi^E BANKs^ RICHMplfl[|'..-]
ANNUAL REPORT OF THE
SECRETARY OF THE TREASURY
ON
THE STATE OF THE
FINANCES
FOR THE FISCAL YEAR
ENDED JUNE 30
1937
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1938
For sale by the Superintendent of Documents. Washington, D.C. - - - - - - - - - - - - -
Price 50 cents
TREASURY
DEPARTMENT
DOCUMENT N O .
Secretary
3086
H50
il
CONTENTS
I
Pag©
L^
^
'-^
'^^^
^^
^I
^
^
•/]
^
^
^
^
0
,
-^
"^
^
^
f^
r
}J
%
/
s^
f4
Budget results
Receipts
Sources
Expenditures
Deficit
The public debt
Treasury bonds and Treasury notes
Treasury bills
United States savings bonds
Special issues
Cumulative sinking fund
General Fund
Securities owned and guaranteed by the United States
Securities owned
'
Proprietary interest in governmental corporations and credit agencies.
Guaranteed obligations
Monetary developments
Gold and international exchange
Silver and silver certificates
National bank notes
Federal Reserve notes
Emergency legislation
Revenue legislation
Extension of temporary taxes, etc
Carriers Taxing Act of 1937
Bituminous Coal Act of 1937
Estimates of receipts
Legislative enactments affecting revenue estimates
Fiscal year 1938
:
Income taxes
Social security (including carrier) taxes
Capital stock tax
^
Estate and gift taxes
Liquor taxes
Tobacco taxes
Stamp taxes
Manufacturers' excise taxes
Miscellaneous taxes
Customs
Miscellaneous revenues and receipts
Fiscal year 1939
Income taxes
Social security (including carrier) taxes
Capital stock tax
•
Estate and gift taxes
Liquor taxes
Tobacco taxes
Stamp taxes
Manufacturers' excise taxes
•
Miscellaneous taxes
Customs
Miscellaneous revenues and receipts
Estimates of expenditures
Bureau of Internal Revenue
Income tax
Miscellaneous taxes.
Social security taxes
III
^'1':' ^
1
1
4
5
8
8
10
12
12
16
17
IS
20^
20^
20'
20'
21i
21
22
22
22
23^
25'
25>
2527
27
30>
31
31
3S
34
34
34
34
35
35
35
35
35
36
36
36
37
37
37
37
37
38
38
38
38
38
44
44
44
45
IV
CONTENTS
Page
Customs
Construction activities
Original public building program
Building program in the District of Columbia
Program under the Public Works Administration
.
Program under the emergency appropriation acts
Program for other departments
Sale of surplus properties
Repairs and equipment
Treasury activities under the provisions of the Social Security Act
Unemployment trust fund
Collection of taxes
Public health work
^
Old-age reserve account
Treasury activities under the Emergency Relief Appropriation Acts of
1935 and 1936
Administrative expenses
Work relief supply fund
Work rehef projects
Public Health Service
Coast Guard
Bureau of Internal Revenue
1
Division of Research and Statistics
Procurement Division
Nonfiscal activities
Coast Guard
^
Public Health Service
Bureau of Narcotics
Organization changes and procedure
:
45
46
46
46
47
47
47
48
48
48
48
49
49
49
54
54
54
55
55
55
55
56
56
57
57
57
60
60
ADMINISTRATIVE REPORTS OF BUREAUS AND DIVISIONS
Accounts and Deposits, Office of the Commissioner of
Combined statement of assets and habilities of governmental corporations and credit agencies
Securities owned by the United States Government
Contingent liabilities of the United States
Federal savings and loan associations
:
Federal home loan banks
Federal land banks
Capital stock
Subscriptions to paid-in surplus and payments on account of re' duction in interest rates on mortgages
Advances to Federal Reserve banks for industrial loans, etc
Accounting and disbursing of emergency rehef funds
Appropriations authorized under the Social Security Act
Obligations of foreign governments
Receipts from Germany
Army costs
Mixed claims, United States and Germany
^
Annuities under moratorium agreement
Treasury administration of alien and mixed claims
Mixed Claims Commission: Claims against Germany
War Claims Arbiter
Claims of German nationals
Claims of Hungarian nationals
German special deposit account
Tripartite Claims Commission—
Claims against Austria
Claims against Hungary
Railroad obligations
Section 204
Section 207
Sections 209 and 212
-_-Section 210
65
65
65
67
67
68
69
69
70
71
.72
73
74
76
77
77
77
78
78
81
81
81
81
82
82
82
83
83
83
84
84
CONTENTS
Accounts a n d Deposits, Office of t h e Commissioner of—Continued.
T r u s t and special funds invested by t h e Treasury._'
Adjusted service certificate fund
Civil service retirement and disability fund
Foreign service retirement and disability fund
Canal Zone retirement and disability fund
Alaska Railroad retirement and disability f u n d .
District of Columbia teachers' retirement fund
Longshoremen's and harbor workers' compensation fund
District of Columbia workers' compensation fund
J_Railroad retirement account
Old-age reserve account
Unemployment t r u s t fund
.-United States Government life insurance fund
Library of Congress t r u s t fund
National I n s t i t u t e of H e a l t h gift fund
:
National park t r u s t fund
Ainsworth library fund, Walter Reed General Hospital
...
Alien property t r u s t fund
.
^Pershing Hall Memorial fund
^
Special funds
Colorado River D a m fund
Advances to reclamation fund
Division of Deposits
Section of Surety Bonds
Division of Bookkeeping a n d W a r r a n t s
.
.
Division of Disbursement
.
Appointments, Division of
°
N u m b e r of employees in- t h e Treasury D e p a r t m e n t
Retirement of employees
Budget and I m p r o v e m e n t Committee
.
Coast Guard
Protection to navigation
^
Enforcement of customs a n d other laws
Aviation
:
Communications. .
Equipment
.
Ordnance
l
Academy, stations, bases, repair depot, etc
Personnel
Awards of lifesaving medals
International conferences
.
.^._
...
Reorganization.
.
Legislation a n d Executive order^
F u n d s available, obligations, and balances
.
._
Comptroller of t h e Currencj'-, Bureau of
Changes in t h e condition of active national banks
S u m m a r y of changes in membership in t h e national banking s y s t e m .
Reorganized national banks
_.__
Customs, Bureau of
Collections
Volume of business
Entries of merchandise
Vessel, airplane, and highway traffic
.
Drawback transactions
...
Appraisement of merchandise
Protests and appeals
Law enforcement activities
Seizures
Legal proceedings
Fines, penalties, etc
Coordination with other agencies
Smuggling
Customs procedure
V
i*age
84
84
85
86
87
88
89
90
91
91
92
93
95
96
100
101
101
102
103
103
103
104
105
107
108
108
109
109
109
110
110
111
112
113
114
115
115
116
117
117
118
118
118
119
119
120
121
122
123
123
124
124
124
125
126
126
126
126
129
130
131
131
133
m
CONTENTS
Customs, Bureau of—Continued.
Customs Agency Service
.
;
Undervaluation
.
.
Drawback investigations
Port Examination. Commission
Enforcement unit
Foreign investigations
Customs Information Exchange
._>
Miscellaneous
;
Customs School of Instruction
Quota control
.,
Division of Laboratories
Cost of administration
Engraving and Printing, Bureau of
Enrollment and Disbarment, Committee on
Federal Alcohol Administration.
.
Permit Divisiori
..."
Label Examination Division
Statistics and Reports Division
^
Enforcement Division
.
Legal Division
Internal Revenue, Bureau of
:
General
Internal revenue collections
Refunds, drawbacks, and stamp redemptions._
Additional assessments
Cost of administration
Income Tax Unit
Back taxes. _.
Claims and overassessments
Final notices of deficiency (90-day letters)
Returns received, closed, and pending
Audit in Washington
Audit in the
field
Unjust enrichment tax
•—
Social Security Division
Technical staff
Miscehaneous Tax Unit
Estate Tax Division
Tobacco Division
.
.
Bituminous Coal and Silver Tax Division
Sales Tax Division
—
Capital Stock Tax Division
Processing Tax Division
Social Security Division
Alcohol Tax Unit
..
Enforcement Division
Field Inspection Division
Laboratory Division
Assessments
Offers in compromise
Alcohol Tax Section of the office of the General Counsel
Office of the Chief Counsel
.
..
Chief Counsel's committee
Reorganization Section
Appeals Division
'
Civil Division
Compromise Section
Interpretative Division
Penal Division
Review Division
Legislation and Regulations Division
;
Intelligence Unit
Accounts and Collections Unit
Work rehef .projects
i
Accounts and Collections Unit (miscellaneous tax) project
Income Tax Unit (income taxes) project
_.
Alcohol Tax Unit (retail liquor stores) project
Pago
134
134
134
134
134
135
135
135
135
136
136
137
137
140
141
141
142
143
143
143
144
144
144
145
146
146
146
147
148
149
150
150
151
151
152
152
153
154
155
156
156
158
158
159
160
160
160
160
161
161
161
161
161
162
162
162
164
165
165
166
166
166
167
168
168
168
168
CONTENTS
VII
Page
Legal Division
169
Mint, Bureau of t h e .
170
Institutions of the Mint Service. .
170
Coinage
.
171
Bullion deposit transactions
171
Gold operations
171
Silver operations
171
Refineries
.
172
Commemorative coins
172
Stock of coin and monetary bullion in the United States
173
Production of gold and silver
173
Industrial consumption of gold and silver
173
Mint buildings
I
174
Appropriations, expenses, and income
.
174
Narcotics, Bureau of
175
Enforcement activities
.
175
Extent and trend of narcotic traffic177
Printing, Division of
178
Printing and binding
179
Stationery supplies
181
Department advertising
181
Engraving work..:
-..
. 181
Procurement Division
182
Public Buildings Branch
182
Office of the Supervising Architect
182
Office of the Supervising Engineer
182
Combined building program^
.
183
Original public building program
183
Building program in the District of Columbia
183
Program under the Public Works Administration
184
Emergency construction program
184
Program for other departments.
185
Repair and equipment of Federal buildings
186
Section of Space Control
.
186
r Section of Painting and Sculpture
.
187
Treasury relief art project
188
Administration and cost of Federal buildings under the control of
the Treasury Department
188
Expenditures
189
Branch of Supply
190
Public Debt Service
.
192
Division of Loans and Currency
193
Issue and retirement of securities
.
193
Adjusted service bonds
.
194
Individual registered accounts
194
Claims
194
Safekeeping of securities
.
,
195
Mutilated paper and redeemed currency
• 195
United States savings bonds
195
Register of the Treasury
197
Division of Public Debt Accounts and Audit
200
Division of Paper Custody
200
Destruction Committee
201
Pubhc Health Service
i
.
203
Public health work under the Social Security Act
203
Division of Sanitary Reports and Statistics.
205
Domestic Quarantine Division
206
Public health engineering
.•
...
206
Flood emergency health work
206
Cooperation with the Works Progress Administration
207
Cooperation with other Federal agencies
207
Division of Foreign and Insular Quarantine
207
National Institute of Health
.
208
Division of Chemistry
208
Division of Pharmacology
208
Division of Zoblogy
209
VIII
CONTENTS
Public H e a l t h Service—Continued.
National I n s t i t u t e of H e a l t h — C o n t i n u e d .
Division of Infectious Diseases
Division of Biologies Control
Division of Public H e a l t h Methods
Division of Industrial Hygiene
Division of Pathology
Division of Venereal Diseases
Division of Mental Hygiene
Division of Marine Hospitals and Relief
Division of Personnel and Accounts
Personnel
Financial s t a t e m e n t .
Research and Statistics, Division of
Taxation
"_._
Federal
financing
Monetary problems
Actuarial analysis
Savings Bonds, Division of
Secret Service Division
Treasurer of t h e United States
War Finance Corporation
.
.
L
Page
209
209
209
209
209
210
210
212
213
.213
213
214
214
215
215
215
215
216
217
221
EXHIBITS
THE PUBLIC DEBT
Public issues of Treasury bonds and Treasury notes
Exhibit 1. Offering of 2% percent Treasury bonds of 1956-59
:..
Exhibit 2. Subscriptions and allotments, Treasury bonds of 1956-59
Exhibit 3. Offering of 2}^ percent Treasury bonds of 1949-53 a n d l}i percent Treasury notes of series C-1941
.
Exhibit 4. Subscriptions and allotments. Treasury bonds of 1949-53 and
Treasury notes of series C-1941
Exhibit 5. Offering of 2}^ percent Treasury bonds of 1949-53 ( a d d i t i o n a l ) . .
Exhibit 6. Allotments on exchange subscriptions, Treasury bonds of
1949-53 ( a d d i t i o n a l ) . . .
.
i
Exhibit 7. Offering of 1% percent Treasury notes of series D-1939 a n d
1% percent Treasury notes of series A-1942
Exhibit 8. Subscriptions and allotments. Treasury notes of series D-1939
and series A-1942
i
225
226
227
230
231
232
232
234
Issues of Treasury bills
Exhibit 9. Inviting tenders for Treasury bills dated July 1, 1936
-..
Exhibit 10. Acceptance of tenders for Treasury bills dated July 1, 1936
Exhibit 11. S u m m a r y of information contained in press releases issued in
connection with Treasury bills offered during t h e fiscal year 1937
•.
234
235
'235
United States savings bonds
Exhibit 12. Offering of United States savings bonds, series C
Exhibit 13. First amendment, April 23, 1937, to D e p a r t m e n t Circular N o .
571, offering for sale United States savings bonds, series C
Exhibit 14. Amendment, Septeniber 15, 1936, to D e p a r t m e n t Circular
No. 554, offering for sale United States savings bonds, series B
Exhibit 15. D e p a r t m e n t Circular No. 530, Revised, December 16, 1936,
prescribing regulations govern*ing United States savings bonds
Exhibit 16. First amendment, April 23, 1937, to D e p a r t m e n t Circular
No. 530, Revised, prescribing regulations governing United States
savings bonds
238
241
242
242
250
Adjusted service bonds
Exhibit 17. D e p a r t m e n t Circular No. 560, Revised, October 24, 1936,
prescribing regulations governing adjusted service bonds of 1945
Exhibit 18. First amendment, December 30, 1936, to D e p a r t m e n t Circular
No. 560, Revised, prescribing regulations governing adjusted service
bonds of 1945
251
256 •
CONTENTS
IX
Miscellaneous
Page
Exhibit 19. D e p a r t m e n t Circular No. 568, September 15, 1936, prescribing
regulations governing Federal savings and loan associations and Federal
credit unions as fiscal agents of t h e tlnited States
Exhibit 20. Designation of certain Federal savings a n d loan associations
and Federal credit unions for employment as fiscal agents under t h e
provisions of the regulations contained in D e p a r t m e n t Circular No. 568,
promulgated September 15, 1936
Exhibit 21. Designation of Federal savings and loan associations as fiscal
agents for t h e collection of delinquent accounts under title I of t h e
National Housing Act
Exhibit 22. Joint resolution to extend for a period of 2 years the g u a r a n t y
by the United States of debentures issued by t h e Federal Housing Administrator (Pub. Res. No. 6, Feb. 19, 1937)
256
258
258
258
MONETARY DEVELOPMENTS
Exhibit 23. S t a t e m e n t b y t h e Secretary of t h e Treasury, September 25,
1936, issued simultaneously with similar statements by t h e Governments
of Great Britain and France, announcing common principles with respect
to international economic relations
Exhibit 24. Note from t h e Belgian Embassy, September 26, 1936, informing t h e Secretary of State t h a t t h e Belgian Government adheres to t h e
principles of t h e tripartite declaration of September 25, 1936
..
Exhibit 25. Announcement by t h e Secretary of t h e Treasury, October 13,
1936, t h a t t h e United States will sell gold to t h e exchange equalization or
stabilization funds of those countries whose funds hkewise offer to sell
gold to t h e United States
Exhibit 26. S t a t e m e n t by the Secretary of the Treasury, October 13,'1936,
naming Great Britain and France as complying with t h e conditions specified in t h e announcement of October 13, 1936, for t h e purchase of gold
from t h e United States
Exhibit 27. Note from t h e Royal Netherland Legation, November 21, 1936,
informing t h e Secretary of State thatHhe Government of t h e Netherlands
adheres to t h e principles of t h e tripartite declaration of September 25,
1936
Exhibit 28. Note from t h e Swiss Legation, November 21, 1936, informing
t h e Secretary of State t h a t t h e Government of Switzerland adheres to t h e
principles of t h e tripartite declaration of September 25, 1936
Exhibit 29. Announcement by t h e Secretary of t h e Treasury, November 24,
1936, of arrangements giving effect to t h e desire of t h e Governments of
Belgium, t h e Netherlands, a n d Switzerland to cooperate in accordance
with t h e principles of the tripartite declaration of September 25, 1 9 3 6 . . .
Exhibit 30. Announcement by t h e Secretary of t h e Treasury, November
24, 1936, supplementing t h e announcement of October 13, 1936, t h a t t h e
United States will also sell gold to t h e treasuries and certain fiscal agencies
of those countries whose treasuries and fiscal agencies likewise offer to sell
gold to t h e United States
.
Exhibit 31. S t a t e m e n t by t h e Secretary of t h e Treasury, November 24,
1936, naming Belgium, t h e Netherlands, and Switzerland as complying
with t h e conditions specified in t h e announcement of October 13, 1936,
as supplemented
.
Exhibit 32. Announcement by t h e Secretary of t h e Treasury, December
22, 1936, with respect to net additional acquisitions or releases of gold by
t h e Treasury D e p a r t m e n t
.
Exhibit 33. An act to extend t h e time within which t h e powers relating to
t h e stabilization fund and alteration of the weight of t h e dollar m a y be
exercised (Public No. 1, J a n . 23, 1937)
Exhibit 34. Announcement by t h e Secretary of t h e Treasury, M a r c h 11,
1937, of instructions directing collectors of customs to refuse entry of
gold from Mexico unless t h e shipment is accompanied by a certificate
showing t h a t it m a y lawfully be exported from Mexico
Exhibit 35. An act to extend t h e period during which direct obligations'of
t h e United States m a y be used as collateral security for Federal Reserve
. notes (Public No. 9, Mar. 1, 1937)
258
259
260
260
260
261
261
262
262
262
262
263
263
X
CONTENTS
TAXATION
Page
Exhibit 36. Joint resolution to provide revenue, and for other purposes
(Pub. Res. No. 48, June 29, 1937)
Exhibit 37. Sections 3, 4-A, 5 (c), 18, and 19 imposing a tax on coal under
the Bituminous Coal Act of 1937 (Public No. 48, Apr. 26, 1937)
Exhibit 38. Joint resolution to amend the act entitled "An act to levy ari
excise tax upon carriers and an income tax upon their employees, and
for other purposes," approved August 29, 1935 (Pub. Res. No. 9, Feb.
27, 1937)
.
.
Exhibit 39. An act to levy an excise tax upon carriers and certain other
employers and an income tax upon their employees, and for other pur. poses (Public No. 174, June 29, 1937)
...
Exhibit 40. Joint resolution authorizing the Commissioner of Internal
Revenue to grant further extensions of time for filing returns under
title III of the Revenue Act of 1936 (Pub. Res. No. 12, Mar. 13, 1937).
264
264
266
266
270
OBLIGATIONS OP FOREIGN GOVERNMENTS
Exhibit 41. Correspondence exchanged between the Government of the
United States and various foreign governments and statements concerning foreign debts owing to the United States
271
ORGANIZATION AND PROCEDURE
Exhibit 42. First amendment, July 1, 1936, to Department Circular No.
563, prescribing regulations governing hours of employment and overtime work
Exhibit 43. Department Circular No. 187, revised July 27, 1936, prescribing time and leave regulations for the departmental service
Exhibit 44. Supervision of bureaus, offices, and divisions of the Treasury
Department
^
.
Exhibit 45. Orders relating to organization and procedure in the Treasury
Department
278
279
288
289
MISCELLANEOUS
Exhibit 46,. Letter of the Postmaster General to the Secretary of the
Treasury, dated November 11, 1937, certifying extraordinary expenditures contributing to the deficiencies of postal revenues for the fiscal year
1937, in pursuance of Public No. 316, approved June 9, 1930
Exhibit 47. Executive Order No. 7641, June 22, 1937, transferring to the
Secretary of the Treasury the functions delegated to the Secretary of
Labor by Executive Order No. 2889 of June 18, 1918
290
291
TABLES
Explanation of bases used in tables
Description of accounts through which Treasury operations are effected..
295
296
RECEIPTS AND EXPENDITURES
General tables
Table 1. Details of receipts, by sources and accounts, for the fiscal year
1937 (warrants and daily statement bases)
Table 2. Details of-expenditures, by organization units and accounts, for
the fiscal year 1937 (checks issued and daily statement bases) ,
Table 3. Classified receipts and expenditures, monthly July 1936 to June
1937, and annually for the fiscal years 1936 and 1937 (daily statement
basis)
Table 4. Public debt receipts and expenditures, monthly July 1936 to
June 1937, and annually for the fiscal years 1933 to 1937 (daily statement basis)
Table 5. Classified receipts and expenditures for the fiscal years 1932 to
1937, arranged to correspond with the classification shown in daily
Treasury statements beginning July 1, 1937 (daily statement basis)
298
305
320
334
338
CONTENTS
XI
Pag©
Table 6. Receipts and expenditures for the fiscal years 1789 to 1937 (warrant and daily statement bases)
Table 7. Expenditures by major functions for the fiscal years 1930 to 1937.
Table 8. Expenditures for recovery and relief classified as to provisions
for repayment, fiscal years 1932 to 1937
346
354
355
Specific receipts and expenditures
Table 9. Comparison of detailed internal revenue collections for the
fiscal years 1936 and 1937 (collection basis)
:
Table 10. Internal revenue receipts, by tax sources, for the fiscal years,
1916 to 1937 (collection basis)
Table 11. Internal revenue receipts, by States and Territories, for the fiscal
year 1937 (collection basis)
.
Table 12. Expenses of the Internal Revenue Service for the fiscal year 1937
(checks-issued basis)
Table 13. Customs duties (estimated), value of imports entered for consumption, and ratio of duties to value of dutiable imports and to value
of all imports, for the calendar years 1927 to 1936 and by months from
January 1936 to June 1937
Table 14. Customs duties (estimated), value, of dutiable imports, and
ratio of estimated duties to value of dutiable imports, by tariff schedules,
for the calendar years 1927 to 1936 and by months from January 1936
to June 1937
.
Table 15. Customs statistics, by districts, fiscal year 1937
Table 16. Panama Canal receipts and expenditures for the fiscal years
1903 to 1937 (warrant basis)
358
360
363
364
368
369
373
377
Miscellaneous
Table 17. Actual receipts for the fiscal year 1937, and estimated receipts
for the fiscal years 1938 and 1939, by sources
Table 18. Funds appropriated and allocated for recovery and relief,
expenditures therefrom, and unexpended balances as of June 30, 1937..
Table 19. Financial status of appropriations provided in the Emergency
Relief Appropriation Acts of 1935 and 1936, as of June 30, 1937
378
385
388
PUBLIC DEBT
Public debt outstanding
Table 20. Public debt outstanding June 30, 1937, by issues (revised daily
statement basis)
.
^
Table 21. Description of the public debt issues outstanding June 30, 1937
(revised dahy statement basis)
Table 22. Interest-bearing debt outstanding June 30, 1937, classified according to kind of security and callable period or payable date (revised
daily statement basis)
Table 23. Principal of the public debt outstanding at the end of each fiscal
year from 1853 to 1937 (revised daily statement basis)
Table 24. Comparative statement of the public debt outstanding June 30,
1932 to 1937 (daily statement basis)
.
Table 25. Composition of the public debt at the end of the fiscal years 1916
to 1936 and by months from July 1936 to June 1937 (revised daily statement basis)
394
398
408
410
412
414
Public debt operations
Table 26. Public debt retirements chargeable against ordinary receipts
during the fiscal year 1937, and cumulative totals from July 1, 1917, to
June 30, 1936 and 1937, by sources and issues (revised daily statement
basis)
Table 27. Summary of transactions in interest-bearing and noninterestbearing securities during the fiscal year 1937 (revised daily statement
basis)
^
Table 28. Summary of transactions in interest-bearing securities, by form
of issue, during the fiscal year 1937 (revised daily statement basis)
415
418
420
XII
CONTENTS
Page
Table 29. Changes in interest-bearing debt, by issues, during the fiscal year
1937 (revised daily statement basis)
Table 30. Transactions in noninterest-bearing securities, by issues, during
the fiscal year 1937 (revised daily statement basis)
Table 31. Issues, maturities, and redemptions of interest-bearing securities,
exclusive of trust account and other special issues, July 1936 through
June 1937
Table 32. Sources of public debt increase or decrease for the fiscal years
1915 to 1937 (daily statement basis)
Table 33. Transactions on account of the cumulative sinking fund during
the fiscal year 1937 (revised daily statement basis)
Table 34. Transactions on account of the cumulative sinking fund for
the fiscal years 1921 to 1937 (revised daily statement basis)
Table 35. Securities retired through the cumulative sinking fund, par
amount and principal cost, to June 30, 1937 (revised daily statement
basis)
.
421
426
432
436
437
438
439
Interest on the public debt
Table 36. Interest on the public debt, payable, paid, and outstanding unpaid for the fiscal year 1937 (revised daily statement basis)
Table 37. Interest paid on the public debt, by issues, for the fiscal years
1935 to 1937 (warrant basis)
Table 38. Amount of interest-bearing debt outstanding, the computed
annual interest charge, and the computed rate of interest, for the fiscal
years 1916 to 1937 and by months from July 1936 to June 1937 (revised
daily statement basis)
.__
440
440
442
Miscellaneous
Table 39. Contingent liabilities of the United States, June 30, 1937
Table 40. Average yield on long-term United States Government bonds, by
months, January 1919 to June 1937
443
446
CONDITION OF THE TREASURY EXCLUSIVE OF PUBLIC DEBT LIABILITIES
Table 41. Current assets and liabilities of the Treasury at the close of the
fiscal years 1935, 1936, and 1937 (revised daily statement basis)
Table 42. Balance in the General Fund of the Treasury at the end of each
month, fiscal year 1937 (daily statement basis)
Table 43. Securities owned by the United States Government, June 30,
1937
_.
ASSETS AND
LIABILITIES
OP GOVERNMENTAL
AGENCIES
447
448
449
CORPORATIONS AND
Table 44. Combined statement of assets and liabilities of governmental corporations and credit agencies of the United States, as of June 30, 1937..
Table 45. Proprietary interest of the United States in governmental corporations and credit agencies, as of June 30, 1929 to 1937
452
458
STOCK AND CIRCULATION OP MONEY IN THE UNITED STATES
Table 46. Stock of money, money in the Treasury, in the Federal Reserve
banks, and in circulation June 30, 1913 to 1937
:
Table 47. Stock of money, by kinds, at the end of each fiscal year from 1913
to 1937
.
Table 48. Money in circulation, by kinds, at the end of each fiscal year
from 1913 to 1937
Table 49. Stock of money, money in the Treasury, in the Federal Reserve
banks, and in circulation, by kinds, June 30, 1937
460
462
463
464
CONTENTS
XIII
TAX-EXEMPT SECURITIES
Page
Table 50. Estimated amount of securities outstanding, interest
is wholly or partially exempt from the Federal income tax, June
Table 51. Estimated amount of securities outstanding,'interest
is wholly or partially exempt from the Federal income tax,
1913 to 1937, by types of borrowers
on which
30, 1937^
on which
June 30,
465
466
MISCELLANEOUS
Table 52. Principal of the funded and unfunded indebtedness of foreign
governments to the United States, the accrued and unpaid interest
thereon, and payments on account of principal and interest, as of
November 15, 1937
Table 53. Net expenditures for Federal aid to States, fiscal years 1920,
1936, and 1937, and amounts appropriated for 1938, by appropriations.
Table 54. Expenditures made by the Government as direct payments to
States, etc., under cooperative arrangements and expenditures within
States which provided relief and other aid during the fiscal year 1937..
470
471
474
PERSONNEL
Table 55. Number of employees in the departmental service of the Treasury
in Washington, by months, from June 30, 1936, to June 30, 1937
Table 56. Number of employees in the departmental and field services of
the Treasury on June 30, 1936, and June 30, 1937
Table 57. Number of persons retired, and number of persons eligible for
retirement retained, departmental and field services of the Treasury,
August 20, 1920, to June 30, 1937
481
Index
483
480
481
SECRETARIES, UNDER SECRETARIES, AND ASSISTANT SECRETARIES
OF THE TREASURY DEPARTMENT DURING THE FISCAL YEARS
1934 to 1937,1 AND THE PRESIDENT UNDER WHOM THEY SERVED
Term of service..
Official
From—
To-
Mar. 4,1933
Jan. 1,1934
Dee. 31,1933
William H. Woodin, New York....
Henry Morgenthau, Jr., New York.
May 19,1933
Nov. 17,1933
May 2,1934
Nov. 16,1933
Dec. 31,1933
Feb. 15,1936
Dean O. Acheson, Maryland..
Henry Morgenthau, Jr., New York.
Thomas Jefferson Coolidge, Massachusetts.
Eoswell Magill, New York
Secretary of the Treasury
President
Secretaries of the Treasury
Roosevelt.
Roosevelt.
Under Secretaries
Jan. 29,1937
Woodin
Woodin
Morgenthau
Roosevelt.
. . . . Roosevelt.
_v_.. _ _ Roosevelt.
Morgenthau
Roosevelt.
Woodin, Morgenthau...
Woodin, Morgenthau...
Woodin
Morgenthau
Morgenthau
'.
Roosevelt.
Roosevelt
Roosevelt.
Roosevelt.
Roosevelt.
Assistant Secretaries
Apr.
June
June
Dec.
Feb.
18,1933
6,1933
12,1933
1,1934
19,1936
Feb. 15,1936
Dec. 12,1933
Nov. 1,1937
Lawrence W. Robert, Jr., GeorgiaStephen B. Gibbons, New Y o r k . . .
Thomas Hewes, Connecticut
Josephine Roche, Colorado
_..
Wayne C. Taylor, Illinois
1 For officials since 1789 see Annual Report for 1932, pp. xvii to xxi, and corresponding table in Annual
Report for 1933.
PRINCIPAL ADMINISTRATIVE AND STAFF OFFICERS OF THE
TREASURY DEPARTMENT AS OF NOVEMBER 15, 1937
Henry Morgenthau, Jr
Roswell Magill
Wayne O. Taylor
Stephen B. Gibbons...
(Vacant)
Herbert E, Gaston
Daniel W. Bell
LeRoy Barton...
Carl S. Shoup
Harold N. Graves
Cyril B. Upham
^
Henrietta S. Klotz
John Kieley
Archie Lochhead
Beriah M. Thompson
William H. McReynolds
W. N. Thompson
Herbert S. Wood
Charles R. Schoeneman
Edwin R. Ballinger
Thomas Tar lean..
Eugene Sloan
James W. Bryan
_.
Herbert J. Wollner
H. R. Sheppard
Francis C. Rose
Mary E. Switzer
F. A. Birgfeld
Francis deSales Ryan
Frank J. Wilson...
L. C. Spangler
James E. Harper
Gabrielle E. Forbush
OFFICE OF T H E SECRETARY
Secretary of the Treasury.
Under Secretary of the Treasury.
Assistant Secretary of the Treasury.
Assistant Secretary of the Treasury.
Assistant Secretary of the TreasuryAssistant to the Secretary.
Assistant to the Secretary.
Assistant to the Secretary.
Assistant to the Secretary.
Assistant to the Secretary.
Assistant to the Secretary.
Assistant to the Secretary.
Assistant to the Secretary.
Technical Assistant to the Secretary.
Special Assistant to the Secretary.
Administrative Assistant to the Secretary,
Assistant Administrative Assistant to the Secretary
Consulting Expert.
Special Staff Assistant.
._ Technical Assistant.
Legal Assistant to the Under Secretary.
Chief, Division of Savings Bonds.
Chief, Information Section, Division of Savings Bonds.
Consulting Chemist.
Assistant to Assistant Secretary.
Assistant to Assistant Secretary.
Assistant to Assistant Secretary.
,
Chief Clerk.
Superintendent of Treasury Buildings.
Chief, Secret Service Division.
Chief, Division of Printing.
Chief, Division of Appointments.
Chief, Correspondence Division.
OFFICE OF T H E GENERAL COUNSEL
^. General Counsel.
Assistant General Counsel.
Assistant General Counsel.
Assistant General Counsel.
Assistant General Counsel.
Special Assistant to the General Counsel.
Special Assistant to the General Counsel.
Chief Counsel, Bureau of Internal Revenue.
Chief Counsel, Bureau of Customs.
Herman Oliphant
Clarence V. Opper.
Clinton M. Hester
Arthur H. K e n t . .
Huntington Cairns
Lawrence J. Bernard
Thomas A. Manning, J r . .
John P. Wenchel
W. R. Johnson
OFFICE OF T H E DIRECTOR OF RESEARCH AND STATISTICS
George C. Haas
Director of Research and Statistics.
Al F. O'Donnell
Assistant Director.
Russell R. Reagh
Assistant Director (Government Actuary).
Lawrence H. Seltzer
Assistant Director.
Harry D. White..
Assistant Director.
Joseph S. Zucker
Assistant Director.
Anna M. Michener
Assistant to the Director.
Charles S. Bell
.'
Administrative Assistant to the Director.
PUBLIC D E B T SERVICE
Commissioner of the Public Debt.
Assistant Commissioner of the Public Debt.
Deputy Commissioner of the Public Debt.
Register of the Treasury.
Assistant Register of the Treasury.
Chief, Division of Loans and Currency.
Chief, Division of Accounts and Audit.
Chief, Division of Paper Custody.
William S. Broughton
Edwin L. Kilby
•
R e n e w . Barr
Edward G. Dolan
Byrd Leavell
Marvin Wesley
Melvin R. Loafman
Maurice A. Emerson
Alvin W. Hall
Clark R. Long
Jesse E. Swigart
BUREAU OF ENGRAVING AND P R I N T I N G
Director, Bureau of Engraving and Printing.
Assistant Director (Administration).
Assistant Director (Production).
XVI
PRINCIPAL ADMINISTRATIVE AND STAFF OFFICERS
OFFICE OF T H E COMMISSIONER OF ACCOUNTS AND DEPOSITS
Edward F. Bartelt
Commissioner of Accounts and Deposits.
Maurice Collins
_'_
. . Assistant Commissioner of Accounts and Deposits.
William T. Heffelfinger...
Executive Assistant to the Commissioner.
Guy F. Allen.
Chief Disbursing Officer, Division of Disbursement.
Joseph Greenberg
Chief, Division of Bookkeeping and Warrants.
Edward D. Batchelder
Chief, Division of Deposits.
Harry R. Schwalm.
Chief Examiner, Section of Surety Bonds.
OFFICE OF THE COMPTROLLER OF THE CURRENCY
J. F. T. O'Connor..
William Prentiss, Jr
Eugene H. Gough
Gibbs Lyons
W. P. Folger
George R. Marble
Comptroller of the Currency.
Deputy Comptroller.
Deputy Comptroller.
Deputy Comptroller.
Chief National Bank Examiner.
Chief Clerk.
OFFICE OF T H E TREASURER OF T H E U N I T E D STATES
William A. Julian.
Treasurer of the United States.
Marion Banister
Assistant Treasurer.
George O. Barnes
Executive Assistant to the Treasurer.
M. E. Slindee
Administrative Assistant.
Louis P. Allen
Chief Clerk.
BUREAU OF NARCOTICS
Commissioner of Narcotics.
Deputy Commissioner of Narcotics.
Assistant to the Commissioner.
Harry J. Anslinger
Will S. Wood
Malachi L. Harney
OFFICE OF T H E COMMISSIONER OF I N T E R N A L R E V E N U E
Guy T. Helvering....
. . Commissioner of Internal Revenue.
Milton E. Carter...
Assistant to the Commissioner.
Charles T. Russell
Deputy Commissioner.
George J. Schoeneman..
Deputy Commissioner.
D. Spencer Bliss...
Deputy Commissioner.
Stewart Berkshire.
Deputy Commissioner.
Eldon P. King
_
. . Special Deputy Commissioner.
A. R. Marrs.
Head, Technical Staff.
-. Elmer L.Trey...
Chief, Intelligence Unit.
Bertha Wetherton..
Special Assistant to the Commissioner.
Wilford S. Alexander
John L. Huntington
H. C. Flanery
_
Phillip E. Buck
John E. O'Neill
A. J. Barrett
F E D E R A L ALCOHOL ADMINISTRATION
Federal Alcohol Administrator.
Deputy Administrator.
Deputy Administrator.
.-.. General Counsel.
:
Assistant General Counsel.
Administrative Assistant.
James H. Moyle.
Frank Dow...
Thomas J. Gorman
Harvey A. Benner...
Nellie Tayloe Ross
Mary M. O'Reilly
Thomas Parran, Jr
W. F. Draper
Robert Olesen
L. R. Thompson
Walter L. Treadway...
C. E. Waller
S. L. Christian
C. L. Williams
R. A. Vonderlehr
D. S. Masterson
BUREAU OF CUSTOMS
Commissioner of Customs.
Assistant Commissioner of Customs.
Deputy Commissioner.
Deputy Commissioner.
BUREAU OF T H E M I N T
Director of the Mint.
Assistant Director.
PUBLIC H E A L T H SERVICE
Surgeon General.
Assistant Surgeon General.
Assistant Surgeon General.
Assistant Surgeon General.
Assistant Surgeon General.
Assistant Surgeon General.
Assistant Surgeon General.
Assistant Surgeon General.
Assistant Surgeon General.
Chief Clerk and Administrative Officer.
U N I T E D STATES COAST GUARD
Rear Admiral Russell R. Waesche.
Commandant.
Capt. Leon C. Covell
Assistant Commandant and Chief of Operations.
Capt. William H. Munter
Chairman of Permanent Board.
Capt. Philip W. Lauriat...
Inspector in Chief.
Capt. Roger C. Weightman
Chief Personnel Officer.
Capt. Lloyd T. Chalker
Chief Aviation Officer.
Capt. (E) Harvey F. Johnson
Engineer in Chief.
Comdr. William J. Keester...
Chief Supply Officer.
Comdr. James F. Farley
Chief Communications Officer.
Comdr. G. U. Stewart...
Chief Ordnance Officer.
Comdr. Frank J. Gorman
Chief Finance Officer.
Lt. Frank E. Pollio
Acting Chief Intelligence Officer.
16109—38
2
XVII
XVIII
PRINCIPAL ADMINISTRATIVE AND STAFF OFFICERS
P R O C U R E M E N T DIVISION
Director of Procurement.
.Assistant Director, Public Buildings Branch.
Assistant Director, Supply Branch.
Executive Officer.
Special Assistant to the Director.
Assistant to Assistant Director, Public Buildings Branch.
Assistant to Assistant Director, Supply Branch.
Administrative Assistant, Supply Branch.
Supervising Architect.
'
Supervising Engineer.
Chief, Section of Painting and Sculpture.
Rear Admiral C. J. Peoples
W. E. Reynolds.
Harry E. Collins
Leo C. Martin
E. R. Witman.
N. Max Dunning
Robert LeFevre.
W. N. Rehlaender.
Louis A. Simon
Neal A. Melick.
Edward Bruce
ADVISORY COMMITTEE ON ARCHITECTURAL DESIGN
Charles Z. Klauder, Chairman.
Aymar Embury II.
Philip B. Maher.
Henry R. Shepley.
Louis A. Simon
BOARD OF AWARDS, PUBLIC BUILDINGS BRANCH
E. R. Witman, Special Assistant to the Director of Breedlove Smith, Assistant Chief Counsel, Legal
Procurement, Chairman.
Section.
Neal A. Melick, Supervising Engineer.
John H. Schaefer, Office Manager.
W. C. Noll, Superintendent, Architectural Section. John Weber, Secretary.
Nelson S. Thompson, Chief, Mechanical Engineering Section.
BOARD OF AWARDS, SUPPLY BRANCH
Robert LeFevre, Assistant to Assistant Director, R. J. Queenin, Chief, Finance Division.
Chairman.
W. N. Rehlaender, Administrative Assistant.
STANDING DEPARTMENTAL COMMITTEES
BUDGET AND I M P R O V E M E N T C O M M I T T E E
C. R. Schoeneman, Chairman.
John H. Schaefer.
F. A. Birgfeld, Vice Chairman. '
Arthur E. Wilson.
W. N. Thompson.
M. E. Slindee.
D. S. Bliss.
George O. Barnes.
L. C. Martin.
Fred P. Trott.
Edward F. Bartelt.
Mary E. Switzer.
R. L. Harlow.
E. C. Nussear, Secretary.
C O M M I T T E E ON E N R O L L M E N T AND DISBARMENT
Guy C. Hanna, Chairman.
George D. Carrington.
W. W. Cook.
E. B. Van Veen, Attorney for the Government.
C O M M I T T E E ON P E R S O N N E L
F. A. Birgfeld, Chairman.
(Vacant.)
James E. Harper.
C O M M I T T E E . O N CIVIL SERVICE R E T I R E M E N T
F. A. Birgfeld, Chairman.
W. N. Thompson.
James E. Harper.
Frank Dow.
BOARD OF REVIEW
L. S. Cannon, Chairman.
William K. Laws, Vice Chairman.
John W. Edwards.
(Refunds of Processing Taxes)
H. Stewart McDonald, Jr.
Percy S. Crewe.
ORGANIZATION OF THE TREASURY DEPARTMENT, NOVEMBER 15, 1937
DEPARTMENT
OF
THE
TREASURY
November 15. 1937
SECRETARY
OF THE
TREASURY
omecTOR
OF R C S I A K C H
AMD S T A T I S T I C J '
ADMINrSTRATIVE
ASSISTANT T O THS
SECRETARY
ASSISTANT SECRETASr
mCHAROE Of CUSTOMS
COAST GUABO AND
OFFICE OF
•
SECRETARY
TECHNICAL
SSISTANT
ASSISTANT TO THE
SECRETARY
IN MATTERS OF
PUBLIC RELATIONS
OFFICE OF THE
r H t A S U R t * OF THE
UNITED STATES
OIVISIOO OF KtSEARCH
AMD STATISTICS
eOVERNMENT ACTUARY
OFFICE OF THE
COMPTROLLER OF
THE CURRENCY
CHIEF CLERK OF
SUPERINTENDENT
TSEASUBY
BUILDINGS
DIVISION OF
ACCOUNTS AND AUDIT
•APER CUSTODY
CHART 1.
COMMISSIONER
OP ACCOUNTS
AND DEPOSITS
COUNSEL
FOR THE
TREASURY
FROCUREOAENT
UOAL
DIVISION
ANNUAL REPORT ON THE FINANCES
TREASURY DEPARTMENT,
Washington J D, (7., January 5, 1938,
SIR: I have the honor to make the following report:
BUDGET RESULTS
Receipts
Receipts in general and special accounts amounted to $5,294,000,000
during the fiscal 3^ear 1937. This total compares with $4,116,000,000
RECEIPTS (GENERAL AND SPECIAL ACCOUNTS), FISCAL YEARS 1928 TO 1937, BY
PRINCIPAL SOURCES
1928
1929
1930
1931
1932
1933
1934
1935
1936
1937
CHART 2.
in the fiscal year 19.36, and the post-war and depression low of
$2,006,000,000 in the fiscal year 1932. The 1937 total raises the
annual average of such receipts for the last 5 fiscal years, 1933 to
1937, inclusive, to about $3,700,000,000 or close to the annual average
1
2
REPORT OF THE SECRETARY OF THE TREASURY
of $3,900,000,000 around which receipts, exclusive of trust funds,
fluctuated during the fiscal years 1922 to 1930.
The trend in receipts by major sources for the fiscal years 1928 to
1937, inclusive, is shown in the chart on page 1. A comparison of
receipts for 1936 and 1937 is presented in the table below. A more
detailed comparison of internal revenue receipts appears in table 9 on
page 358 of this report.
Receipts by major sources for the fiscal years 1936 and 1937 ^
[In millions of dollars]
1936
Internal revenue:
I n c o m e taxes:
C u r r e n t corporation 2
Current individual
Back taxes.-Excess-profits t a x
.
_
_
T o t a l income taxes (collection basis)
A d j u s t m e n t t o d a i l y T r e a s u r y s t a t e m e n t (unrevised)
T o t a l income taxes
.
Miscellaneous internal r e v e n u e :
C a p i t a l stock
__
—
Estate
Gift
1—
—
Distilled spirits a n d wines (including special taxes) 2
F e r m e n t e d m a l t liquors (including special taxes) 2
__
Tobacco
Stamp
. _ j
M a n u f a c t u r e r s ' excise taxes:
Gasoline
Automobiles, t r u c k s , tires, t u b e s , a n d p a r t s or accessories
Electrical energy
L u b r i c a t i n g oilsAnother
T o t a l m a n u f a c t u r e r s ' excise taxes
Telegraph, telephone, cable, a n d radio facilities, e t c
T r a n s p o r t a t i o n of oil b y pipe line
Admissions
Coconut, etc., oils processed 2
All other miscellaneous
.
.__
T o t a l miscellaneous i n t e r n a l r e v e n u e taxes (collection
basis)
A d j u s t m e n t to daily Treasm-y s t a t e m e n t (unrevised)
T o t a l miscellaneous i n t e r n a l r e v e n u e taxes
. _
Agricultural a d j u s t m e n t a n d related taxes (collection basis)
A d j u s t m e n t to daily T r e a s u r y s t a t e m e n t basis (unrevised) .
Agricultural a d j u s t m e n t a n d related taxes - - - .
-.-
—-
1937
Increase ( + ) ,
decrease ( - )
610.0
589.4
213.5
14.5
894.3
996.0
258.3
25.1
+284.3
+406. 6
+44.8
+10.6
1,427. 4
-.8
2,173. 7
-16.2
+746.3
-15.4
1, 426. 6
2,157. 5
+730.9
94.9
218.8
160.1
256.1
249.1
500.8
69.0
137.5
281.6
23.9
312. 2
281.6
551.9
69.9
+42.6
+62.8
—136. 2
+56.1
+32.5
+51.1
+.9
177.3
196.5
+19.2
94.5
33.6
27.1
50.2
125.2
36.0
31.5
61.4
+30.7
+2.4
+4.4
+11.2
382.7
450. 6
+67.9
21.1
9.8
17.1
11.7
13.3
24.6
11.2
19.7
11.6
12.4
+3.5
+1.4
+2.8
-.1
-.9
2,004. 5
+5.1
2,188. 7
-7.5
+184. 2
-12.6
2,009.6
2,181. 2
+171. 6
3 67.6
+9.1
—67.6
-9.1
76.7
—76 7
1 The detail of income taxes, miscellaneous internal revenue taxes, agricultural adjustment and related
taxes, and other internal revenue taxes is on the basis of internal revenue collections with totals adjusted to
basis of daily Treasury statement (unrevised). Customs and miscellaneous receipts are shown on the basis
of the daily Treasury statement (unrevised). General and special accounts are combined. For description
of accounts and bases, seep. 295;
2 Collections for credit to trust funds are not included. For details of the collections, see note on p. 359.
3 This item includes $5,240,842.81 originally allocated to the trust fund of the processing tax on Philippine
sugar, which amount was transferred to the General Fund in 1936 in accordance with Presidential Proclamation No. 2103 of October 15, 1934.
REPORT OF THE SECRETARY OF THE TREASURY
Receipts by major sources for the fiscal years 1936 and 1937—Continued
fin millions of dollars]
1936
Internal revenue—Continued,
other internal revenue:
Taxes upon carriers and their employees
Social security taxes
Tax on unjust enrichment
Total other internal revenue taxes (collection basis)
Adjustment to daily Treasury statement (unrevised)
Total internal revenue taxes
_
Total internal revenue taxes and customs
.
Total miscellaneous receipts
.-
Total receipts, general and special accounts.»
..
+.3
.3
265.4
6.1
+265. 4
+6.1
271.8
-13.4
+271.8
-13.4
• 258.4
+258. 4
4, 634. 2
-37.1
+1,134. 7
-50.5
3, 512. 9
386.8
4, 597.1
486.4
+1, 084^2
+99.6
-
3,899. 7
5, 083. 5
+1,183. 8
_
.5
90.4
39.3
86.1
.6
68.2
48.9
92.6
—22 2
+9.6
+6.5
_
Miscellaneous receipts:
Proceeds of Government-owned securities:
Foreign obligations '
All other
Seigniorage
All other miscellaneous receipts
_
Increase ( + ) ,
decrease (—)
3,499.5
+13.4
Total other internal revenue taxes
Total internal revenue taxes (collection basis)
Adjustment to daily Treasury statement basis (unrevised).
Customs
1937
+. 1
216. 3
210.3
—6 0
4,116. 0
5, 293.8
+1,177.8
The increase of $1,178,000,000 over the total for the fiscal year 1936
was the largest increase recorded since receipts began to rise in the
fiscal year 1933. Although gains were widespread among the numerous sources of revenue, the rise in income tax receipts, including
back taxes and excess-profits taxes, was especially marked. Individual income tax receipts showed a gain of more than $400,000,000
and corporation income tax receipts advanced by more than $280,000,000. The large augmentation of receipts from these sources is
ascribable both to the higher level of incomes in 1935 and 1936 and to
sundry features of the Revenue Act of 1936 such as increases in rate
scales, imposition of surtaxes on undistributed profits, and subjection
of dividends to the normal tax. The $265,000,000 received from social
security taxes constituted receipts from a new source of revenue.
Noteworthy increases of lesser amount occurred in the customs receipts
and in collections from the estate, cigarette, and capital stock taxes.
The only decrease of significant size, apart from the virtual disappearance of collections from processing taxes following the invalidation of
the Agricultural Adjustment Act taxes by the United States Supreme
Court on January 6, 1936, was that in gift tax receipts, which having
reached the unprecedented figure of $160,000,000 in the fiscal year
1936, declined to $24,000,000 in 1937.
4
REPORT OF THE SECRETARY OF THE TREASURY
Sources,—As is regularly the case, the bulk of ordinary receipts
came from relatively few sources. Nine domestic taxes, plus the
customs duties, accounted for almost 85 percent of the total. The
remainder was derived from several score minor taxes and miscellaneous sources, detailed in part in the table on page 2.
Among primary sources, the individual income tax ranked first,
yielding in current collections alone close to $1,000,000,000. The
corporate income tax, of almost equal importance, brought in nearly
$900,000,000 on current account. In addition, over $250,000,000 were
collected from individuals and corporations in back income taxes.
Together, these two sources contributed two-fifths of total receipts.
The estate and the capital stock tax, though much less important
(ranking fifth and tenth, respectively, in size of collections), added
respectively some $280,000,000 and $140,000,000 to collections, bringing the aggregate of these four principal individual and corporate
levies to appr,oximately $2,550,000,000, or just short of half the total
receipts.
A significant new source of receipts, seventh in order of size, was
the taxes received under the Social Security Act. Revenues under
title V I I I amounted to $207,000,000 and title I X to $58,000,000, a
total of $265,000,000. While there were collections under both titles
during the last 6 months of the fiscal year 1937, and under title I X
some collections as early as October 1936, most of the fiscal year collections represent collections of but 4 months inasmuch as the payment
of tax liabilities was not, in general, due under title VIII until February
28, 1937, and consequently did not appear in receipts until March,
whereas the time for filing the initial title I X returns was extended
from January 31, 1937, to April 1, 1937.
The five remaining major sources of revenue comprised levies
identified with commodities. Customs "duties, in third place as respects size of collections, amounted to nearly half a billion dollars.
The tax on cigarettes yielded almost the same revenue as the customs.
Beer, domestic distilled spirits, and gasoline, in the order nam_ed,
comprised the other chief commodity sources, with collections approximating respectively $280,000,000, $240,000,000, and $200,000,000.
The importance of commodity taxes as a whole was enhanced by
other tobacco and liquor taxes than those just named, additional
collections for each group amounting to about $75,000,000; by other
excises besides that on gasoline, collections amounting to over
$250,000,000; and by some miscellaneous and regulatory taxes.
These additions, however, were spread among a long list of items the
great majority of which contributed individually only a fraction of
one percent to total receipts. Two exceptions were the tax on passenger automobiles and motorcycles and the tax on chewing and smoking tobacco, each of which brought in slightly more than one percent
REPORT OF THE SECRETARY OF THE TREASURY
5
of the total. Collections from all such items together, if added to
collections from the customs and the four major domestic commodity
sources—cigarettes, beer, distilled spirits, and gasoline—raise the
relative importance of receipts from commodity taxes in the fiscal
year 1937 to about 40 percent of total ordinary receipts.
Significant shifts in the composition of receipts have occurred in
recient years. The proportion derived from income and related taxes
on individuals and corporations has increased conspicuously since
1934, while the proportion derived from commodity levies in the
aggregate, including the customs, has decreased. The latter were of
course increased by the processing taxes in 1934 and 1935, but have
declined in relative importance even from 1936. In considerable part
these shifts result from changes in the business situation, which affect
income tax receipts more sharply than receipts from relatively stable
consumptioD sources; and in part they reflect also revenue law changes
involving, among other things, heavier direct taxation on individual
incomes and estates.
It should be noted, however, that individual and corporate income
taxes have not yet resumed the relative importance they had in 1932
and prior years, when together they supplied from one-half to threefifths of total receipts. The estate tax, though it still constitutes but
5 percent of total receipts, contributed a larger absolute amount than
in any prior year. MisceUaneous receipts, not in the main of tax
origin, which had large, significance in the decade or more when the
Government was realizing upon its war investments and loans, have
been comparatively small in the past few years.
Expenditures
Total expenditures of the Federal Government under general and
special accounts amounted to $8,105,200,000 in the fiscal year 1937,
compared with $8,879,800,000 in 1936, a decrease of $774,600,000.
The table that follows shows in summary form the major changes in
expenditures between the fiscal years 1936 and 1937. The trend in
total expenditures and in the principal classes of expenditures is
shown in the chart on page 7 and in greater detail in table 7, page 354.
Classifications are on a functional basis and are directly comparable
from year to year.
Table 5, page 338, presents a comparison of expenditures on the basis
of the daily Treasury statement as reclassified on July 1, 1937. Recovery and relief expenditures are classified as to provisions for repayment in table 8, page 355.
REPORT OF THE SECRETARY OF T H E TREASURY
Expenditures by major functions, fiscal years 1936 and 1937 ^
[On basis of daily Treasury statements (unrevised) and of classifications of the Bureau of the Budget.
In millions of dollars]
Class of expenditures
Regular operating expenditures:
Legislative, judicial, and civil establishments
_
National defense...
Veterans' pensions and benefits (including bonus prepayment)
Interest on the public debt
Other (refunds of receipts, settlement of war claims, etc.)
Total.
Public works:
Public highways
Tennessee Valley Authority
Reclamation
Rivers and harbors, improvement. _
Flood control
1
Public buildings
Grants to public bodies, including administration..
Other
Total.
Relief:
Direct relief
Work relief (WPA and CWA).
Civilian Conservation Corps...
Total.
Loans (net)
Subscriptions to stock and surplus..
Agricultural adjustment program...
Social security
Railroad retirement
Debt retirement
Total expenditures..
Increase (+)
or
decrease (—)
1936
1937
733.6
870.5
2,348. 6
749.4
41..1
814.7
888.6
1,128. 2
866.4
48.1
+81.1
+18.1
-1, 220.4
+117.0
4,743.2
3,746.0
-997.2
243.9
48.8
49.9
137.8
52.3
71.9
233.9
74.0
350.6
41.2
52.3
142.4
54.6
76.3
272.9
89.1
+106.7
-7.6
+2.4
+4.6
+2.3
+4.4
+39.0
+15.1
912.5
1,079.4
+166.9
691.7
1,264.4
486.3
184.3
1,896. 7
385; 8
-407.4
+632.3
-100.6
2,342.4
2,466.8
+124.4
2 180.8
88.9
641.6
28.4
.3
403.3
2 307.1
47.1
615.8
447.7
5.5
104.0
8,879.8
8,105.2
+7.0
-126.3
-41.8
-25.8
+419.3
+5.2
-299.3
-774.6
1 Classification includes both general and emergency funds.
2 Excess of credits, deduct.
The decrease of $774,600,000 in total expenditures between 1936
and 1937 was accounted for in the most part by the decrease in expenditures for the bonus prepayment and for debt retirement.
Excluding these items, total expenditures increased $641,400,000.
The decrease of $997,200,000 in the regular operating expenditures
of the Government included a net decrease of $1,220,400,000 in the
expenditures for veterans' pensions and benefits. This decrease was
due principally to the completion of the transfers to the adjusted
service certificate fund for the veterans' adjusted compensation payment made as a result of the act of January 27, 1936 (Public No.
425), directing the immediate payment of the veterans' adjusted
service certificates, which, under the original terms, were not due
until 1945 and thereafter, and to the discontinuance of the annual
appropriation to the adjusted service certificate fund. Expenditures
for national defense, including expenditures for the construction of
naval vessels, aircraft, and subsidiary works to meet provisions of the
naval treaties of 1922 and 1930, increased $18,100,000. Expenditures
for interest on the public debt: increased $117,000,000; and expendi-
REPORT OF THE SECRETARY OF THE TREASURY
7
tures for legislative, judicial, and civil establishments increased $81,100,000. Other regular operating expenditures increased $7,000,000.
The increase of $166,900,000 in public works expenditures was due
in large part to an increase in public highway expenditures of $106,700,000. The increase of $124,400,000 in relief expenditures was the
result of the substitution in 1936 of work relief under the Works
Progress Administration for direct relief. Expenditures of the Federal
Emergency Relief Administration (including the Federal Surplus
Commodities Corporation) declined $483,200,000, and expenditures
EXPENDITURES, FISCAL YEARS 1928 TO 1937, BY PRINCIPAL CLASSES
of the Civihan Conservation Corps declined $100,500,000. The Works
Progress Administration expended $1,896,400,000 for work rehef in
1937, an increase of $632,800,000 over the previous year.
Repayments of loans exceeded the loans and expenditures from
revolving and other funds of credit agencies by $307,100,000 in 1937,
an increase of $126,300,000 over the previous year, due principally
to the collections of loans made in previous years by the Reconstruction Finance Corporation and the Commodity Credit Corporation.
Details with respect to revolving fund payments and collections are
shown in the table on page 387.
8
REPORT OF THE SECRETARY OF THE TREASURY
The increase of $419,300,000 in social security expenditures includes
transfers of $265,000,000 to the old-age reserve account, established
under title I I of the Social Security Act. Such transfers were made
monthly beginning in January 1937.
Public debt retirements amounted to $104,000,000 in the fiscal
year 1937. A detailed discussion of public debt operations and
expenditures is presented below.
Deficit
The deficit for the fiscal year 1937, in general and special accounts,
amounted to $2,811,300,000. If public debt retirements are deducted,
the net deficit for the year amounted to $2,707,300,000. This compares with a net deficit of $4,360,600,000 for the previous year.
THE PUBLIC DEBT
At the close of the fiscal year the gross public debt outstanding
amounted to $36,425,000,000, compared with $33,779,000,000 outstandmg on June 30, 1936, an increase of $2,646,000,000. Of this
increase, $1,087,000,000 was due to the purchase of gold which was
held in inactive account in the General Fund of the Treasury; and
$500,000,000 was due to the issue of a special series of adjusted service
bonds for the account of the Government life insurance fund. The
net changes during the year in the various classes of securities which
make up the outstanding debt are shown in the two tables which follow, the first presenting, by classes, a coihparisen of the amounts
outstanding at the beginning and at the end of the year, and the
second showing in summary form the public, or open market, issues
and maturities or redemptions. The various classes of securities
which made up the outstanding "debt during the years 1932 to 1937
are shown in the table on page 412 of this report.
REPORT OF THE SECRETARY OF T H E TREASURY
Comparison of public debt outstanding June SO, 1936 and 1937, by classes
[On basis of daily Treasury statements (unrevised), see p. 295]
Jime 30, 1936
Interest-bearing debt:
Public issues:
Pre-war and postal savings bonds...
Treasury bonds
_.
United States savings bonds
Total bonds
Treasury notes
Treasury bills
Total public issues
Restricted issue:
bonds of 1945
Adjusted
service
Special issues:
Adjusted service bonds, Government life insurance fund series
Treasury notes
Certificates of indebtedness
June 30, 1937
Increase (+) or
decrease (—)
$199, 575, 520.00
17,167,930,100.00
1 316,124,814. 50
$197,780,860.00
19, 935. 749,800. 00
1 799,648,901. 77
-$1,794,660.00
+2, 767,819, 700.00
+483, 524,087. 27
17, 683, 630, 434. 50
11, 380,985,050. 00
2, 353, 516,000.00
20, 933,179, 561. 77
10, 617, 241, 250. 00
2, 303,094,000.00
+3, 249, 549,127. 27
—763, 743, 800.00
-50,422,000.00
31,418,131,484. 50
33,853, 514,811.77
+2,435,383, 327.27
944, 516,650.00
388,574,650.00
-555,942,000.00
480,433,000.00
145, 709,000. 00
500,157, 956. 40
707,967,000.00
349,895,000.00
+500,157,956.40
+227, 534,000. 00
+204,186,000.00
626,142,000. 00
1, 558, 019, 956.40
+931, 877,956. 40
Total interest-bearing debt
...
Matured debt on which interest has ceased.
Debt bearing no interest
32,988, 790,134.50
169,363, 395. 26
620,389,963. 97
35, 800,109, 418.17
118, 529,815. 26
505,974,498.86
+2,811 319 283 67
-50,833, 580. 00
-114,415,465.11
Total gross debt
Balance in General Fund
33, 778, 543,493. 73
2, 681, 510, 203.96
36,424, 613, 732. 29
2,553, 473,897. 31
+2, 646 070, 238. 56
—128, 036, 306. 65
31,097,033,289. 77
33,871,139,834.98
+2, 774,106, 545.21
Total special issues
.
Gross debt less balance in General
Fund
_
1 Cash receipts transferred to the Treasurer of the United States less redemptions. For full account of
sales, see p. 16.
Public issues, maturities, and redemptions during the fiscal year 1937
[On basis of daily Treasury statements (unrevised), see p. 295]
Issued
Interest-bearing debt:
Public issues:
Pre-war and postal savings boifds..
Treasury bonds
United States savings bonds
Total bonds..
Treasury notes.
Treasury bills..
Total public issues.
• Cash receipts transferred to the Treasurer of the United States.
Maturities and
redemptions
$2, 768,352,100
1 619,731,009
$1,794,660
532,400
36, 206,922
3,288,083,109
1,057,329,600
3,604,643,000
38, 533.982
1,821,073,300
3,654, 965,000
7,949,966,609
6,614,572,282
10
REPORT OF THE SECRETARY OF T H E TREASURY
The composition of the interest-bearing public debt outstanding, by
types of obligations, monthly, January 1930 to June 1937, in amounts
and in percent of the total, is shown in chart 4 on page 11. The various
maturities, by calendar years, of the interest-bearing debt outstanding
on June 30 for the years 1933, 1935, 1936, and 1937 are shown in
chart 5 on page 13.
The computed annual interest charge, on the basis (unrevised) of
the interest-bearing debt outstanding at the beginning and at the
end of the year, increased from $845,000,000 to $924,000,000, and
the computed average rate of interest increased from 2.562 to 2.582
percent. Actual expenditures for interest during 1937 were $866,000,000.
The course of the interest-bearing debt outstanding, on a revised
basis, and of the computed rate of interest thereon from January
1920 through June 1937 is shown in chart 6 on page 14 and in table
38 on page 442.
The open market issues during the year—that is, the issues offered
for public subscription, either for cash or on an optional exchange basis
for other maturing obligations, as distinguished from the special
issues for the investment of trust funds, etc.—included three issues of
Treasury bonds and three of Treasury notes, weekly issues of Treasury
bills, and the continued sale of United States savings bonds.
Treasury bonds and Treasury notes
The major public debt operations involving Treasury bonds and
notes were carried out on the four regular tax-payment dates. Of
the $3,825,000,000 of bonds and notes issued, $2,074,000,000 were
issued for cash and $1,751,000,000 were issued in exchange for a like
amount of maturing Treasury notes. These operations are summarized in the following table:
Quarterly financing during the fiscal year 1937
Quarterly
date
Issue
Sept. 15,1936
2% percent Treasury bonds of 1956-59:
In exchange for i\^ percent Treasury notes, Sept. 15,1936.
For cash
^.1
$511,870,800
469,977, 250
Dec. 15,1936
2J4 percent Treasury bonds of 1949-53:
In exchange for 2% percent Treasury notes, Dec. 15,1936.
In exchange for 3 percent Treasury notes, Feb. 15, 1937__.
255, 206, 200
296,016, 500
For cash..
IH percent Treasury notes, Dec. 15,1941:
In exchange for 2% percent Treasury notes, Dec. 15,1936.
In exchange for 3 percent Treasury notes, Feb. 15, 1937,_.
Mar. 16,1937
June 15,1937
2\i percent Treasury bonds of 1949-53 (additional issue):
In exchange for 3 percent Treasury notes, Apr. 15,1937__.
Wi percent Treasury notes. Mar. 15,1942, for cash
i H percent Treasui-y notes, Sept. 15,1939, for cash.
Amount
551, 222, 700
751, 435,750
$981,848,050
1,302,658,450
93,960,200
110,465,200
204, 425,400
483,846, 600
426, 349, 600
426, 564, 600
3,825,681,600
11
KEPORT OF THE SECRETARY OF THE TREASURY
COMPOSITION OF THE INTEREST-BEARING PUBLIC DEBT OUTSTANDING, BY TYPES
OF OBLIGATIONS, MONTHLY, JANUARY 1930 TO JUNE 1937
1931
1933
DOLLARS"
Billions
1935
1936
1937
1935
1936
1937
Certificates a n d Bills
1930
1931
1932
1933
1934
PERCENTAGE COMPOSITION OF THE INTEREST-BEARING PUBLIC DEBT OUTSTANDING, M O N T H L l , JANUARY 1S30 TO JUNE 1937
1930
1931
1932
1933
1934
1935
1936
1937
1930
1931
1932
1933
1934
1935
1936
.1937
CHART 4.
12
REPORT OF T H E
SECRETARY OF. T H E
TREASURY
Quarterly financing during the fiscal year 1 9 3 7 — C o n t i n u e d
RECAPITULATION
Treasury
bonds
Issued for cash
Issued in exchange..
Total
Treasury
notes
Total
$1.221,413,000
1. 546.939,100
$852,904,100
204. 425,400
$2,074,317,100
1,751,364,600
2, 768, 352,100
1,057, 329, 500
3,825,681,600
Further details concerning the issues of bonds and notes are set
forth in the statement appearing as table 31 on page 432. All official
circulars and statements relating to these transactions are included in
the exhibits beginning on page 225.
Treasury bills
Weekly offerings of $50,000,000, or thereabouts, of 273-day Treasury bills were made during the year in replacement of like maturing
series. Following the practice introduced in the preceding year, for
the 6 weeks beginning December 2, for the 6 weeks beginning March
3, and for the 7 weeks beginning April 21, the regular weekly offering
was supplemented by an additional offering of the same amount in
anticipation of incdme tax receipts due on future quarterly payment
dates, the maturities of the additional bill issues being fixed immediately following such due dates (e. g., March 16, .17, and 18, etc.).
At the beginning of the year 47 series of Treasury bills aggregating
$2,354,000,000 were outstanding. During the year 72 series aggregating $3,604,000,000 were issued, and 73 series aggregating $3,655,000,000 matured. At the end of the year 46 series aggregating
$2,303,000,000 remained outstanding.
The highest average rate, computed on a bank discount basis, for
any series issued was 0.738 percent for 273-day bills dated M a y 5,
1937. The lowest average rate for 273-day bills was 0.067 percent
for bills dated July 8, 1936, and the lowest average rate for any series
issued was 0.038 percent for 91-day bills dated December 16, 1936.
The average rate on all bills issued during the year was 0.332 percent, and the average rate on all matured bills was 0.157 percent.
Further information concerning Treasury bills will be found in
exhibits 9 to 11, beginning on page 234, and in table 31 on page 432.
United States savings bonds
The sale of United States savings bonds continued during the year.
Pursuant to Department Circular No. 571, dated December 16, 1936,
a new series, designated C-1937, was made available on January 1,
1937, without any change in the general terms of the bonds.
13
REPORT OF THE SECRETARY OF THE TREASURY
MATURITY. BY CALENDAR YEARS, OF THE INTEREST-BEARING PUBLIC DEBT
OUTSTANDING'
Bonds
Bills
As
of June
30
1933
1 I I I I I gM I I
1933
'35
'37
'39
'41
'43
'45
'47
'49
'51
'53
'55
'57
'59
'61
1933
'35
'37
'39
'41
'43
45
'47
'49
'51
'53
'55
'57
'59
TT'61
'51
'5 3
L.'55I A'57
'59
'61
'51
53
-59
rr61 0
As
of June
O
30
1936
1933
'35
'37
'39
'41
'43
'45
47
As of
49
June 3 0
1937
1933
35
37
"39
41
43
45
47
49
'55
*57
CHART 5.
1 Exclusive of consols, postal savings bonds. United States savings bonds, adjusted service bonds, and
special obligations issued to governmental trust funds and agencies. Certificates of indebtedness are included with Treasury notes.
16109—38
3
14
REPORT OF T H E SECRETARY OF T H E TREASURY
United States savings bonds are sold on a discount basis. They are,
redeemable, at the option of owners, after 60 days from their issue
date at fixed redemption values which increase at 6-month intervals
after 1 year from their issue date, until their maturity in 10 years.
The pubhc debt accounts for issues reflect the cash receipts and periodic
INTEREST-BEARING DEBT OUTSTANDING' AND COMPUTED BATE OF INTEREST
THEREON, BY MONTHS. JANUARY 1S20 TO JUNE 1937
1920
DOLLARS"
Billions
1922
1922
1926
1928
1930
CHART 6.
accruals of discount, and for redemptions reflect payments at the
current redemption value.
During the year, savings bonds in the aggregate maturity value of
$687,000,000 were issued, for which cash amountmg to $522,000,000
was received in the Treasury, and bonds in the aggregate maturity
value of $48,000,000 were redeemed, at the request of owners, at their
current redemption value of $36,000,000. As of June 30, 1937, there
» On basis of daily Treasury statement (revised)i
15
REPORT OF THE SECRETARY OF T H E TREASURY
Vs^ere outstanding bonds having a maturity value of $1,059,000,000
and a redemption value of $802,000,000.
The following statement, on the basis of daily Treasury statements,
revised, summarizes the issues and redemptions of savings bonds by
fiscal years from March 1, 1935, when the sale was inaugurated, to
June 30, 1937:
Issued
Redeemed
Fiscal year
Maturity value
1935
1936
1937
Accnials to June 30,1937
Maturity
value
Redemption
value
$83, 422, 726 $62, 567, 043. 76
$707,860
362, 277,426 264, 208, 068. 76 14,971,200
686, 739,176 516, 054, 398. 80 48,040,125
8,408, 202. 25
$530,887. 50
11, 262, 714. 76
36, 327,912. 25
1,122, 439, 325 850, 237, 713. 55 63,719,176
48, 111, 614. 60
_
Total
Cash receipts
Sales of savings bonds by months, and denominations during
the fiscal year are shown in the following table:
Sales of United States savings bonds, by months and denominations, July 1936 to
June 1937
$25
$50
$100
$500
$1,000
Total
Maturity value'
1936—July--.-^
August
September
October
November
December-1937—January. _
February
Marcb
April
.
May
JuneTotal
$801,875.00 $1,679,950 $6, 761, 600
1, 266, 260 4,492, 200
716,625.00
1, 220, 660 4,344, 600
721,825.00
766, 200. 00 1, 296, 250 4,472, 600
743, 826. 00 1,267.800 4,195,200
1, 278,260. 00 2, 047,300 6, 337,900
1, 333, 076. 00 2,144, 700 8,113,400.
6, 374, 700.
1,803,150
1,162,400.00
6, 633,800
1,190, 260.00 1,887,000
1, 644, 600 5,452,100
1,055,150.00
4, 674, 500
929,900. 00 1,441,150
5, 288, 300
1, 036, 200. 00 1,635,800
$8, 984,000
.6, 628, 500
6, 440,600
6,607, 600
6, 306, 600
13, 560, 600
17, 527,500
9, 703,600
9,609,000
7, 691,000
6,163, 5007,033, 500
$30, 706,000
21, 273, 000
21,487,000
22,099,000
21,744,000
66,967, 000
99, 422, 000
42, 601.000
37, 615,000
27, 035, 000
21, 254,000
23, 663, 000
$47,822,425. 00
34, 376,576. 00
34, 214,475. 00
35, 241, 660. 00
34, 257, 325.00
80,190,950. 00
128, 640, 675. 00
61, 644, 750. 00
' 66,836,060.00
42, 877,860. 00
34, 463,050. 00
38, 665,800.00
11, 734, 676. 00 19, 234, 600 66,030,800 106, 265, 600 425, 765,000 629, 020, 476. 00
Cash receipts
Total
$8,800,931. 26 $14,425,950 $49, 523,100 $79, 691, 626 $319,323,760 $471,765,356.25
The above table is compiled on the basis of the final Treasury audit
of sales by the Postal Service, the Federal Reserve banks, and the
Treasury Department during the fiscal year 1937. These figures
are not in agreement with those presented elsewhere in this report,
as receipts from sales through the Postal Service, while deposited in
the Treasury currently, are not transferred from the account of the
Postmaster General to that of the Treasurer of the United States until
after the receipt and audit of postmasters' accounts of sales, with the
result that public debt receipts on account of such sales are not shown
16
REPORT OF THE SECRETARY OF T H E TREASURY
as such in the Treasurer's books until some time after the close of the
month in which the sales were made.
The regulations governing savings bonds were revised and reissued
as Department Circular No. 530, Revised, dated December 16, 1936.
An important change in provisions for redemption was made eft'ective
on April 23, 1937, through the first amendment to that circular, by
which additional facilities were provided for the convenience of holders
of savings bonds desiring to receive payment, the Federal Reserve
banks being authorized to redeem bonds registered in the names of
natural or artificial persons in their own rights without reference of the
bonds to the Treasury Department for discharge of registration
prior to payment.
The circulars above referred to and the amendment will be found
on pages 242 and 250.
Special issues
Special issues of interest-bearing securities are made for the inyestment of trust or other funds deposited in the Treasury or pursuant
to appropriations for specific purposes. The transactions in these
respects during the year, summarized in the following statement,
resulted in an increase of $376,000,000 of these securities outstanding.
Title
Adjusted service bonds:
Series of 1945
Government life insurance fund series...
Treasury notes—special series:
Old-age reserve account
Civil service retirement fund
Foreign service retirement fund
—
Canal Zone retirement fund
Alaska Railroad retirement fund
Postal Savings System
Federal Deposit Insurance CorporationCertificates of indebtedness—special series:
Adjusted service certificate fund
Unemployment trust fund
Total
Issued
Redeemed
$140, 689,400
600,157, 956
1 $696, 631,400
267,100,000
78,700,000
881,000
634,000
62,000
44, 000,000
664,000
179,000
70,000,000
6,000,000
54,900,000
696,439,000
144,100,000
303,053,000
1,639,463,356
1, 263, 617,400
1 Includes $233,000,000 redeemed before June 30, 1936, but in transit on that date.
Adjusted service bonds amounting to $141,000,000, on the basis of
the daily Treasury statement, unrevised, were issued during the year,
making a total of $1,809,000,000 of such bonds issued since June 15,
1936. Redemptions during the year amounted to $696,000,000,
compared with redemptions of $724,000,000 during 1936, leaving
$389,000,000 of adjusted service bonds outstanding as of June 30,
1937.
In order to meet the heavy demand caused by the large number of
applications filed by veterans located in various parts of the country,
the facilities of the Federal Reserve banks were utilized to supplement
those of the Treasury Department in Washington for the issue of
REPORT OF THE SECRETARY OF THE TREASURY
17
adjusted service bonds. The volume of veterans' applications
diminished appreciably after the beginning of the fiscal year and
effective October 16, 1936, the issue of the bonds was centralized in
the Public Debt Service of the Treasury Department in Washington.
The arrangement whereby checks in redemption of adjusted service
bonds would be issued by certain designated paying post offices was
discontinued at the close of business January 15, 1937. Beginning
January 16, 1937, Federal Reserve banks were designated as places
for the redemption of these bonds. This does not mean that the
service to the veterans holding these bonds is in any way curtailed.
The local postmaster continues to serve as a certifying officer, but
instead of forwarding the bonds to a designated paying post office he
transmits them to the Federal Reserve bank which serves the district
in which the post office is located.
Section 5 of the Adjusted Compensation Payment Act, 1936, provided for the redemption of adjusted service certificates held by the
United States Government life insurance fund on account of loans
made thereon by issuing to that fund bonds of the United States
bearing interest at the rate of 4}^ percent per annum. Pursuant to
this section bonds aggregating $500,000,000, dated June 15, 1936,
were issued for the account of the United States Government life
insuriance fund on June 15, 1937. These bonds may not mature or be
called until the expiration of 10 years from the date of issue, except
that any of these bonds may be redeemed at any time upon the
certification by the Administrator of Veterans' Affairs that the
amount represented by the bond is required to meet current obligations
of the fund.
Regulations governing adjusted service bonds will be found as
exhibits 17 and 18 on pages 251 and 256 of this report.
'
Cumulative sinking fund
The Treasury followed the policy pursued during the previous year
of applying to the sinking fund only Liberty bonds. Treasury ndtes,
and Treasury bonds redeenied in cash. Securities were not purchased for retirement and exchange offerings were not reduced in
order to apply maturing notes and so reduce the available balance in
the sinldng fund appropriation. To have exhausted the full credit
available would have required a corresponding increase in the cash
offerings without any net change in the public debt.
The total amount available for the sinking fund during 1937 was
$723,000,000, including an unexpended balance of $150^000,000
brought forward from the previous year. There were redeemed for
the fund $15,000,000 of First Liberty Loan bonds, $19,000,000 of
Fourth Liberty Loan bonds, $376,400 of Treasury bonds, and
$69,000,000 of Treasury notes, making a total of $104,000,000. The
18
REPORT OF THE SECRETARY OF THE TREASURY
unexpended balance of $619,000,000 was carried over to the fiscal year
1938.
Tables covering transactions on account of the fund for 1937, and
since its inception on July 1, 1920, will be found on pages 437 to 439 of
this report.
GENERAL FUND
The General Fund includes all moneys of the Government deposited
with and held by the Treasurer of the United States including the
moneys covered into the Treasury which can be withdrawn only in
pursuance of an appropriation by Congress. Every receipt of the
Treasury, from whatever source, and every expenditure, of whatever
nature, affect either the assets or liabilities, or both, of the General
Fund shown in the daily statement of the Treasury. The total
amount of the assets over and above the total amount of the liabilities
represents the balance in the General Fund available to meet Government expenditures.
The assets in the General Fund consist of gold, silver, currency,
coin, unclassified collection items, etc., and deposits to the credit
of the Treasurer of the United States and other Government officers,
in Federal Reserve banks, special depositaries account of sales of
Government securities, national and other bank depositaries, foreign
depositaries; and the treasury of the Philippine Islands.
The liabilities of the General Fund consist of outstanding Treasurer's checks, deposits of certain Government officers composed of
balances to the credit of the Post Office Department, the Board of
Trustees, Postal Savings System, and postmasters, clerks of courts,
disbursing officers, etc., and uncollected items, exchanges, etc.
The balance in the General Fund is classified according to inactive gold, increment on gold, seigniorage, and working balance.
The net change in the balance of the General Fund from the beginning to the close of the fiscal year is accounted for as follows:
Analysis of the change in the General Fund balance between June SO, 1936^ and
June SO, 1937
[On basis of daily Treasury statements (unrevised), see p. 295. For a description of accounts through which
Treasury transactions are effected, see p. 296]
Balance, June 30, 1936
$2,681,510.203.96
Add:
Ordinary receipts:
General and special funds
- 5,293,'840,'236.87
Trust funds, increment on gold, etc
692,136,616.14
Net increase in gross public debt
2,646,070,238.66
Total funds available
Deduct:
Expenditures chargeable against ordinary
recf^ipts:
General and special accounts..
Less public debt retirements
^
11,213,656,294.53
$8,105,158, 547.47
103.971,200.00
Trust funds, increment on gold, etc-._
Less national bank note retirements
768,468,840.25
99,573,790.50
$8,001,187,347.47
658,895.049. 75
Total expenditures (excluding retirements of public
debt and national bank notes)
8,660,082,397.22
Balance. June 30. 1937
2,553,473,897.31
REPORT OF T H E SECRETARY OF T H E TREASURY
19
A comparative analysis of the assets and liabilities and the balance
of the General Fund is shown below for the beginning and close of
the fiscal year. Similar information is presented in greater detail,
on the basis of daily Treasury statements (revised), in the table on
page 447 of this report.
Current cash assets and liabilities of the Treasury, June SO, 1936 and 1937, and
changes during the year
[On basis of daily Treasury statements (unrevised), see p . 295]
J u n e 30, 1936
J u n e 30, 1937
Increase ( + ) or
decrease (—)
$10, 608, 304,167. 23
$12, 318,172, 420.10
+ $ 1 , 709,868, 262.87
2, 916, 285,869.00
2,903,632,809.00
-12,663,050.00
6, 291,078,912. 60
6,020, 442, 436. 78
+729, 363, 524.18
12,948,478.00
156,039, 430.93
1,800,000,000.00
10,470,461. 75
156,039,430. 93
1,800,000,000.00
-2,478,016. 26
GOLD
Assets: Gold
Liabilities:
Gold certificates o u t s t a n d i n g (outside
of T r e a s u r y )
Gold certificate fund. B o a r d of Governors, F e d e r a l R e s e r v e S y s t e m
R e d e m p t i o n fund. F e d e r a l R e s e r v e
notes
Gold reserve '
.- _E x c h a n g e stabilization fund
10,890.585,138.46
+714, 232, 457.93
431,961,476.70
1.427,587,281.64
+995, 635,804.94
-
708, 210, 842.21
508, 582, 714.00
835,195,892. 46
606, 602,800.00
+126,986,050. 25
-2.979,914.00
-.
1, 216, 793, 656. 21
1. 340, 798, 692.46
+124,005,136.25
1,133,777, 786.00
1,306, 281, 987.00
+171,604,20L00
1,176, 622.00
1,172,022.00
-4.600.00
1,134,964,408.00
1,306,454,009.00
+171,499,601.00
81,839,148.21
34, 344. 683. 46
—47, 494. 464. 75
1,427,587, 281. 64
34,344, 683.46
401, 320,149.97
+995, 636,804.94
—47,494,464. 76
+49,890,308.86
2,068,087,034.35
2,427,943.68
843,380,462.81
2, 661, 673. 73
-1,224,706,571.64
+233, 630.16
2,936, 735,443.96
2,709, 294,151. 61
—226.441,292.36
264,225,240.00
165,820, 254. 30
-98,404,985.70
B a l a n c e in t h e General F u n d
2, 681, 510, 203.96
2, 653,473,897. 31
-128,036,306.65
Triactivft'goTd
Balance of i n c r e m e n t resulting from r e d u c tion in w e i g h t of t h e gold dollar
Seigniorage ^
_
W o r k i n g balance . .
_ -
1,086. 787, 223.10
+1,08i5. 787,223.10
140,496,996. 73
315,900,866.96
2, 226,112,350. 27
140,965,030.63
355, 687, 781.26
970,033,862. 32
+468,033.90
+ 3 9 , 786,924.30
—1,255,078,487.95
2. 681, 610, 203.96
2, 553,473,897. 31
—128,036,306.65
Total
—-
Gold in General F u n d
_
10,176,352, 680. 53
SILVER
Assets:
Silver
Silver dollars
-
Total
Liabilities:
Silver certificates o u t s t a n d i n g (outside
of T r e a s u r y )
T r e a s u r y notes of 1890 o u t s t a n d i n g (outside of T r e a s u r y )
Total
Silver in General Fund.GENERAL FUND
Assets:
I n T r e a s u r y offices:
Gold (as above)
• Silver (as a b o v e ) - o t h e r coin, c u r r e n c y , a n d bullion _I n depositary b a n k s , reserve b a n k s , a n d
t r e a s u r y of P h i l i p p i n e I s l a n d s
Unclassified, collections, e t c - .
Total
Liabilities
Balance in t h e General F u n d
431,961, 476. 70
81,839,148. 21
361, 429,841.12
1 Reserve against $346,681,016 of United States notes and against Treasury notes of 1890 outstanding in
the amount of $1,176,622 in 1936 and $1,172,022 in 1937. Treasury notes of 1890 are also secured by silver
dollars in the Treasury.
«This item represents seigniorage resulting from the issuance of silver certificates equal to the cost of
the silver acquired under the Silver Purchase Act of 1934 and the amount returned for the silver received
under the President's proclamation dated Aug. 9,1934.
20
REPORT OF THE SECRETARY OF THE TREASURY
SECURITIES OWNED AND GUARANTEED BY THE UNITED STATES
Securities owned
The United States owns various securities representmg foreign obligations, capital stock, bonds, etc., of governmental corporations and
agencies, and indebtedness to the Government by railroads, farmers,
ship owners, and others. As of June 30,1937, these securities amounted
to $17,606,022,695.57, a decrease of $379,643,000.83 from June 30,
1936. A statement of '^Securities owned by the United States Government" is published in conjunction with the monthly Statement of
the Public Debt of the United States. A summary statement of these
securities as of June 30, 1936 and 1937, will be found on page 66,
and a detailed statement as of June 30, 1937, on page 449 of this
report.
Proprietary interest in governmental corporations and credit agencies
The statement of securities owned by the United States is based
upon the face or par amount of the securities held by the United States.
In some instances, however, the funds represented by these securities
have been spent by the agencies receiving such funds from the Treasury, pursuant to congressional authorization, and in other cases the
funds received from the Treasury have been augmented by earnings
from operations or interest on investments, etc. In order to reflect
the amount of the Government's interest in governmental corporations
and credit agencies the Treasury compiles a *'Combined statement of
assets and liabilities of governmental corporations and credit agencies
of the United States," showing the amount and classification of the
assets and liabilities of the agencies referred to, the privately owned
proprietary interest in such agencies, and the proprietary interest of
the United States. This statement, as of June 30, 1937, appears on
page 452 of this report, and a summary table of the Government's
proprietary interest in such agencies as of June 30, 1929 to 1937, inclusive, is contained on page 458.
Guaranteed obligations
Certain governmental corporations and agencies are authorized to
issue bonds and other obligations which are guaranteed as to the payment of principal and interest by the United States. These bonds and
obligations are classified as contingent liabilities of the United States.
They are primarily the obligations of the issuing agencies, and the
assets of such agencies can be used for their payment. The Government's contingent liability on this class of obligations decreased from
$4,749,624,958.35 on June 30, 1936, to $4,694,588,883.48 on June 30,
1937. A summary statement of these obligations and certain other
contingent liabilities of the United States as of June 30, 1936 and
REPORT OF THE SECRETARY OF THE TREASURY
21
1937, appears on page 67, and a detailed statement of the contingent
liabilities as of June 30, 1937, will be found on page 443.
MONETARY DEVELOPMENTS
Gold and international exchange
After consultation with the Governments of Great Britain and
France, the Secretary of the Treasury, by authority of the President,
issued on September 25, 1936, a statement announcing common
principles with respect to international monetary relations. Similar
statements were issued simultaneously by Great Britain and France.
On October 13, 1936, the Secretary of the Treasury announced that
the United States would sell gold to the exchange equalization or
stabilization funds of those countries whose funds likewise are offering
to sell gold to the United States, on certain terms and conditions, and
named Great Britain and France as complying with the conditions
specified in his announcement.
The Government of Belgium in a letter to the Secretary of the
Treasury dated September 26, 1936, and the Governments of the
Netherlands and Switzerland in letters dated November 21, 1936,
signified their adherence to the principles stated in the tripartite
declaration of September 25, 1936.
The Secretary of the Treasury on November 24, 1936, supplementing his announcement of October 13, 1936, announced that the United
States would also sell gold to the treasuries, or fiscal agencies acting
for or whose acts in that connection are guaranteed by the treasuries,
of those countries whose treasuries or fiscal agencies so acting or
guaranteed likewise offer to sell gold to the United States on certain
terms and conditions. The statement of January 31, 1934, relative
to the sale of gold for export was withdrawn. Giving eft'ect to the
desire of the three nations to cooperate with the Governments of the
United States, Great Britain, and France, the Governments of Belgium,
the Netherlands, and Switzerland were named as complying with the
conditions laid down in the announcement of October 13, 1936, as so
supplemented.
On December 22, 1936, the Secretary of the Treasury made an"^
announcement with respect to net additional acquisitions or releases
of gold by the Treasury Department. The gold acquired following
that statement was segregated in the General Fund of the Treasury
in an ''inactive account," in which $1,086,787,223 was placed up to
^June 30, 1937.
By the act approved January 23, 1937, the powers conferred by
section 10 (stabilization fund) of the Gold Reserve Act of 1934, and
section 43 (b) (2) (alteration of the weight of the dollar) of title I I I
of the act of May 12, 1933, as amended, were extended until June
30, 1939, unless the President should sooner declare the existing
22
REPORT OF THE SECRETARY OF THE TREASURY
emergency ended and, in the case of section 10, the operation of the
stabilization fund terminated.
On March 11, 1937, the Secretary of the Treasury, at the request
of the Mexican Government and with the approval of the President,
directed the collectors of customs to refuse entry into the continental
United States of shipments of gold (with certain exceptions) from
Mexico unless there is filed a certificate showing that the gold was or
may be lawfully exported from Mexico.
The correspondence with foreign governments, press releases, and
the act referred to above appear as exhibits 23 to 34 on pages 258 to 263.
Silver and silver certificates
Acquisitions of silver by the Treasury from all sources during the
year were 226,742,842 fine ounces, at a total cost of $126,609,299.
Under the proclamation of December 21, 1933, as amended, 63,029,665
fine ounces were received; 63,777 fine ounces were received under the
proclamation of August 9, 1934; 163,030,551 fine ounces were purchased under the authority of section 3 of the Silver Purchase Act of
1934; and 618,849 fine ounces were received in deposits of gold bullion
and in exchange for Government-stamped bars.
On June 30, 1937, the amount of silver certificates outstanding was
$1,305,300,608, representing an increase of $171,515,436 during the
year.
National bank notes
Through the gradual retirement of national bank notes from circulation, as explained on page 46 of the annual report for 1936, the
amount of national bank notes outstanding was reduced from $371,721,815 on June 30; 1936, to $272,164,455 on June 30, 1937, a decrease
of $99,557,790. Inasmuch as the national banks, prior to June 30,
1936, had deposited lawful money with the Treasurer of the United
States to the amount of all but $600,000 of their liability for these
notes, the United States assumed the liability on all but $600,000 of the
outstanding notes, and holds United States bonds as security for the
latter.
Federal Reserve notes
By an act approved March 1, 1937, the second paragraph of section
16 of the Federal Reserve Act, as amended, was amended to extend
to June 30, 1939, the period during which direct obligations of the
United States may be used as collateral security for Federal Reserve
notes.
A copy of this act appears as exhibit 35 on page 263.
REPORT OF THE SECRETARY OF THE TREASURY
23
EMERGENCY LEGISLATION
During the fiscal year 1937, further appropriations and allocations
of funds were made for the purpose of continuing the Federal program
to furnish relief arid to aid recovery.
By an act approved January 26, 1937, the Reconstruction Finance
Corporation was authorized to continue its operations until June 30,
1939. The act provides for withdrawal of the activities of the Corporation when sufficient credit for any class of borrowers is available
from private sources.
The Disaster Loan Corporation, with nonassessable capital stock
of not to exceed $20,000,000, was created by an act approved February
11, 1937. Under this act the Reconstruction Finance Corporation
was authorized and directed to acquire such stock out of the unexpended balance of the $50,000,000 which the Reconstruction Finance
Corporation was authorized to lend for catastrophe relief by section
1 of the act of April 17, 1936.
On June 30, 1937, the amount of capital stock and obligations that
the Reconstruction Finance Corporation was authorized to have
outstanding at any one time was $6,200,000,000, exclusive of indefinite
authorizations for which there is no statutory limitation. During the
year the Reconstruction Finance Corporation made redemptioris of
its notes held by the Secretary of the Treasury in the net a,mount of
$425,000,000. As of June 30, 1937, the total notes sold to the Treasury, less redemptions, amounted to $3,605,000,000. This figure does
not include the original $500,000,000 of the Corporation's capital
stock purchased by the Treasury. Notes originally issued by the Corporation directly to banks and other institutions increased by $3,605,000 to $255,234,667 during the fiscal year.
Under the First Deficiency Appropriation Act, fiscal year 1937,
approved February 9, 1937, there was appropriated $789,000,000
which was to be added to, and proportionately increase the amounts
of the limitations prescribed under, the appropriation made in the
Emergency Relief Appropriation Act of 1936.
The Emergency Relief Appropriation Act of 1937, title I of the act
approved June 29, 1937, provided a direct appropriation of $1,500,000,000 for relief and work relief on useful projects, including projects
previously approved for the Works Progress Administration. In
addition, such unexpended balances, as the President might determine, of appropriations made by the Emxcrgency Relief Appropriation Act of 1936, as supplemented by the First Deficiency Appropriation Act, fiscal year 1937, and the Emergency Relief Appropriation Act of 1935, were reappropriated for these purposes. The
24
REPORT OF THE SECRETARY OF THE TREASURY
direct appropriation was made available for the following classes of
projects in the amounts indicated:
Highways, roads, and streets
$415,000^ 000
Public buildings, parks, and other recreational facilities, public utilities, transportation
facilities, flood control, conservation, etc
630,000.000
Assistance for educational, professional, and self-help, and clerical persons and women's
projects
380,000,000
National Youth Administration
75.000,000
Total.
1,600,000,000
The amounts specified for any of the foregoing classes may be
increased proportionately in accordance with the amount of unexpended balances that may be transferred from the appropriations
made by the Emergency Relief Appropriation Act of 1935 and the
Emergency Relief Appropriation Act of 1936, as supplemented, and
may be increased 15 percent by the transfer of amounts from other
classes. The appropriation was also made available for expenditure
by the Resettlement Administration (now the Farm Security Administration) for such loans, relief, and rural rehabilitation for needy
persons as the President may determine. The act provides that the
funds appropriated shall be so apportioned and distributed over the 12
months of the fiscal year 1938 as to constitute the total amount that
will be furnished during such fiscal year for relief purposes.
The Public Works Administration Extension Act of 1937, title I I
of the act approved June 29, 1937, authorized continuation of the
Federal Emergency Administration of Public Works until July 1,
1939. The amount which the Reconstruction Finance Corporation
is authorized to have invested at any one time in securities purchased
from the Administration was increased from $250,000,000 to $400,000,000. The amount of funds to be used for grants from moneys
realized from the sale of securities was increased from $300,000,000
to $359,000,000.
The First Deficiency Appropriation Act, fiscal year 1937, extended to
June 30,1937, the authority of the President with respect to emergency
conservation work (Civihan Conservation Corps) and appropriated
$95,000,000 for this purpose. An act approved June 28, 1937,
estabhshed the Civilian Conservation Corps, which is to continue
for a period of 3 years after July 1, 1937.
The table on page 385 summarizes all funds appropriated and allocated for recovery and rehef, expenditures therefrom, and unexpended balances on June 30, 1937. As shown in the table, only
$12,020,000 of the $6,927,000,000 appropriated under the Emergency
Rehef Appropriation Acts of 1935 and 1936, as amended, remained
unallocated on June 30, 1937. A subsidiary table shows the details
of revolving funds including repayments and collections from previous loans and payments for current loans made by Federal lending
agencies.
REPORT OF THE SECRETARY OF THE TREASURY
25
REVENUE LEGISLATION
Revenue legislation enacted during the fiscal year 1937 included the
extension for 2 years of the temporary taxes and the increased postal
rates provided for in the Revenue Act of 1932, as amended; the Carriers Taxing Act of 1937; the Bituminous Coal Act of 1937; and the
extension of time for filing returns on the unjust enrichment tax
under title I I I of the Revenue Act of 1936,
Extension of temporary taxes, etc.
Public Resolution No. 48, approved June 29, 1937, amended the
Revenue Act of 1932, as amended, by substitution of "1939" for
"1937" wherever it appeared in title IV, and parts I, I I , I I I , and IV,
of title V. The taxes which were continued in effect until June 30
or July 31, 1939, by this amendment include: (1) Various manufacturers' excise taxes; (2) taxes on the importation of coal, petroleum
and products, lumber, and copper; (3) the miscellaneous taxes on
telegraph, telephone, radio, and cable facilities, transportation of oil
by pipe line, and stamp taxes on bond transfers and deeds of conveyance; (4) the changes in rates of stamp taxes on issues of bonds
of indebtedness, issues of capital stock, transfer or sale of capital
stock, and sale of produce on exchange for future delivery; and
(5) the reduced exemption for the tax on admissions. The increase
in the first class postage rates and the authorization for the President
to proclaim modification of certain postage rates were continued in
effect until June 30, 1939, by the same resolution.
A copy of Public Resolution No. 48 is shown as exhibit 36 on
page 264.
Public Resolution No. 12, approved March 13, 1937, made certain
extensions of time for filing returns on the unjust enrichment tax under
title I I I of the Revenue Act of 1936. A copy of the resolution is shown
as exhibit 40 on page 270.
Carriers Taxing Act of 1937
The taxes imposed by the act entitled "An act to levy an excise tax
upon carriers and an income tax upon their employees, and for other
purposes," approved August 29, 1935, which would have terminated
on February 28, 1937, were extended to June 30, 1938, by Public
Resolution No. 9, approved February 27, 1937. The act, as amended,
was repealed by the Carriers Taxing Act of 1937, Public No. 174, approved June 29, 1937. The taxes imposed under the new act are a
substitution for those imposed under the 1935 act, but instead of being
retroactive to March 1, 1936, the effective date of the 1935 act, the
new taxes became effective January 1, 1937.
26
REPORT OF THE SECRETARY OF THE TREASURY
Provision is made for the refund of all taxes paid under the 1935
act for compensation earned prior to January 1, 1937, and for the
refund of all taxes paid under the 1935 act for compensation earned
subsequent to December 31, 1936, to the extent to which such taxes
are in excess of the taxes due for the period after December 31, 1936,
computed at the new rates. The sums not required to be so refunded shall be retained in the Treasury and credited on taxes due
under the 1937 act. Provision is also made (1) for the termination of proceedings. pending for the recovery of moneys paid as
taxes under the 1935 act; and (2) for the payment to employees
of all moneys held by employers as taxes under the 1935 act but
never paid into the Treasury, with respect to compensation earned
prior to January 1, 1937, and for the payment to employees of
all moneys held by employers as taxes under the 1935 act but never
paid into the Treasury, except the proper proportion, computed
at the new rates, of the sums deducted for taxes in respect of compensation earned after December 31, 1936. Notwithstanding the
tax changes made by this Carriers Taxing Act, the Railroad Retirement Act of 1937, which amended the Railroad Retirement Act of
1935, authorizes appropriations to the railroad retirement account for
each fiscal year beginning with 1937, to provide for the payment of
all annuities, pensions, and death benefits under the provisions of
that act as well as the Railroad Retirement Act of 1935; and in
general continues effective the rights of individuals to benefits under
the 1935 Railroad Retirement Act.
The Carriers Taxing Act of 1937 sets up permanent schedules of
taxation applicable to carriers and their employees as follows: (1)
Income tax on employees based upon compensation earned by every
employee not in excess of $300 for any calendar month; (2) an
excise tax on carriers, based upon compensation paid not in excess
of $300 for any calendar month, each levied at the rate of 2% percent
for a 3-year period beginning January 1, 1937, increasing one-fourth
of 1 percent every 3 years until it reaches 3% percent, which rate
becomes applicable with respect to employment after December 31,
1948; and (3) an income tax on representatives of employees, based
upon compensation earned not in excess of $300 for any calendar
month, levied at the rate of 5)^ percent for a 3-year period beginning
January 1, 1937, increasing one-half of 1 percent every 3 years until
it reaches 7}f percent, which rate becomes applicable with respect to
employment after December 31, 1948. All three taxes became
effective with respect to employment after December 31, 1936.
Copies of Public Resolution No. 9 and Public No. 174 are shown
as exhibits 38 and 39 on page 266.
REPORT OF THE SECRETARY OF. THE' TREASURY
27 .
Bituminous Coal Act of 1937
The Bituminous Coal Act of 1937, approved April 26, 1937, imposes
an excise tax of 1 cent per ton of 2,000 pounds upon the sale or other
disposal of bituminous coal produced within the United States when
sold or otherwise disposed of by the producer. In addition, the act
imposes an excise tax equal to 19^ percent of the sale price at the
mine, or in the case of coal disposed of otherwise than by sale at the
mine and coal sold otherwise than through an arm's length transaction,
19K percent of the fair market value of such coal at the time of sale
or disposal, which is applicable with respect to {a) the sale or other
disposal of coal in interstate commerce by a producer while he is not
a member of the code provided for in the act, and (6) the sale or
other disposal of coal by a producer in intrastate commerce while he
is not a member of the code if the National Bituminous Coal Commission declares that such transactions in intrastate commerce cause
an undue advantage as between persons and localities in such commerce
on the one hand and interstate commerce in coal on the other. The
taxes imposed by this act became effective on June 21, 1937, but do
not attach to sales or other disposals made on and after 4 years from
the date of the approval of the act, Aprir26, 1937.'^^^^
• .• j
Sections 3, 4-A, 5 (c), 18, and 19 of the Bituminous Coal Act of
1937 (Public No. 48) are shown as exhibit 37 on page 264.
ESTIMATES OF RECEIPTS
Each November the Treasury Department is required to make
estimates of the revenues of the Federal Government, on the basis
of the existing tax structure, for the balance of the current fiscal year
and for the entire followuig fiscal year.
The tax revenue from practically every major source is directly
dependent, although in varying degree, upon business conditions during the period in respect of which the tax is levied. Making estimates
of future revenue, therefore, requires the Treasury Department to
forecast the general business situation for a period ending approximately twenty months later. These forecasts are based on the analysis
of a large variety of financial and other economic data, mcluding
estimates of future industrial production and profits, security and
commodity prices, employment and pay rolls, and other pertinent
information. Historical relationships which portray the action of
revenues from particular taxes, as related to the economic series above
.mentioned, form the basis for estimating the future revenues of
the Federal Government.
28
REPORT OF T H E SECRETARY OF T H E TREASURY
Because it is not possible to foretell with accuracy the future, there is
a necessary and inevitable range of uncertainty in connection with any
such forecasts of future revenues. The problem of the Federal Government is to predict, among other things, not only the profits of all
businesses but also the aggregate income of all individuals and its
distribution among the various net income classes as weU as the consumption and importation of commodities upon which taxes are levied.
The difficulties are augmented in periods of business recession such as
occurred in the late summer and fall of 1937, when the New York
Times weekly index of business declined from 111.2 on August 14 to
85.6 on December 4, and the New York Herald Tribune weekly
index of production fell from 104.0 to 82.1 in the same period. (The
figure for December 4 is the latest available at the time these estimates
are made.)
An appreciation of the extent of the range of uncertainty which
exists in connection with Federal revenue estimates may be obtained
by examining the record of forecasting in the Presidents' January
Budget Messages in each of the last 10 years. The pertinent figures
are as follows:
Comparison of Presidznts' January Budget Message estimates of revenue with actual
revenue,^ fiscal years 1928-37
[In millions of dollars]
E s t i m a t e issued in
J a n u a r y of—
E s t i m a t e issued in
J a n u a r y of—
Fiscal year
Actual
revenue
Fiscal year
T h a t year
3,907. 0
3,903.1
4,048.6
3,189. 6
2,005. 7
1928
1929
1930
1931
1932
3,944.1
3,676.9
4,117.1
3, 705.8
2, 238.9
T h a t year Preceding
year
Preceding
year
3, 652 2
3,675 1
3,687 2
4,093.4
3,965.7
Actual
revenue
1933
1934
1936
1936.1937
.
. -
-
. .
-
2,079. 7
3,115.6
3,800. 5
4,116.0
5, 293.8 •
2,467.9
3,259 9
3,711.7
4,410 8
6,828.2
2,676.5
2,791.8
3,974.7
3,991. 9
5,654. 2
1 General and special accounts, on the basis of the daily Treasury statement (unrevised).
Using these figures, the percentage differences of actual receipts
from the estimates—as made in the preceding year and in the then
current year—are as follows:
P e r c e n t a g e difference of
a c t u a l receipts from
J a n u a r y e s t i m a t e issued
Fiscal year
1928
1929
1930
1931
1932
--_•
T h a t year
Preceding
year
-0.94
+6.15
-1.66
-13.93
-10.42
+6.98
+6.20
+9.80
-22.08
-49.30
Fiscal year
P e r c e n t a g e difference of
a c t u a l receipts from
J a n u a r y e s t i m a t e issued
T h a t year
1933
1934...
1935
1936
1937
-
-15.73
-4.43
+2.39
-6.68
-9.17
Preceding
year
—19.28
+11.60
—4.38
+3.11
—6.37
REPORT OF THE SECRETARY OF THE TREASURY
29
The past decade covers years of high, low, and rapidly changing
business activity, and instances in which the changes in the tax laws,
such as changes in rates, the addition of new taxes or the invalidation of existing taxes, typical of which is the recent invalidation by
the United States Supreme Court of the taxes levied under the Agricultural Adjustment Act, had substantial effects upon the accuracy
of estimating. Regardless of whether the actual receipts were higher
or lower than the estimates, and regardless of the specific degree to
which changes in the law, business activity, and similar factors caused
actual receipts to differ from the estimates, actual receipts in a particular fiscal year differed from estimates made about 8 months prior
to its close by an average of 7 percent, and from estimates made
about 20 months prior to its close by an average of 14 percent. The
first percentage is pertinent to our present estimate for 1938 and the
second for 1939. Though the unweighted averages of percentage
differences between estimates and receipts are not precise measures
of the probable differences between future revenues and present
estimates of their magnitude, they include allowances for both known
and unknown influences and, as such, may be considered as bearing
directly upon the present estimates.
The entire Federal Budget, both revenues and expenditures, is no
more than a fiscal plan. I t is necessarily influenced by unpredictable developments which take place after the plan is made, just as
is the case with the budget of any business concern. Attention is
again directed to the fact that these are estimates and that as estimates they will be revised from time to time as is inevitable under
rapidly changing conditions as new factors develop which obviously
affect the expectation of receipts.
In considering estimates of future revenue in connection with
forecasts of business conditions, it is important to remember that
changes in business profits and individual incomes do not occur in
direct proportion to increases or decreases in the volume of business activity and in the general price level. In periods of declining
business, for example, profits and incomes drop more than proportionally to the decrease in the volume of business due to the relative
inflexibility of certain costs. In addition, consideration must be
given to the fact that the decrease in the amount of income tax collections, which will result from a given decrease in individual incomes,
is accentuated in a tax system which employs progressive rates, not
only because the individual taxpayer's income is less but also because
the taxpayer pays a smaller percentage of the lowered income as an
income tax.
There is a lag between the time income is received by taxpayers and
the time of coUections of income taxes. Thus, in general, the changes
in earnings in the calendar, year 1937 will not be reflected in income
16109—38
4
30
REPORT OF TPIE SECRETARY OF THE TREASURY
tax collections until the income tax returns are filed on or before
March 15, 1938. Because of the privilege of making quarterly installment payments of these tax liabihties the collections will be received
throughout the calendar year 1938, thus falling into the receipts of
fiscal years 1938 and 1939. Hence, the estimated income tax collections, both corporation and individual, for the fiscal year 1938 are
made up partly from paymeuts on 1936 incomes and partly from payments on 1937 incomes. Similarly, fiscal year 1939 estimates of
income tax receipts involve payments on both 1937 and 1938 incomes.
Because of the variation in Federal practices in the collection of taxes,
coUections from estate and gift taxes and from the title I X Social
Security Act tax on employers of eight or more persons also lag behind
changes in general business conditions, while most of the other tax
sources of revenue reflect such business changes within a comparatively
short time.
Legislative enactments affecting revenue estimates
Numerous legislative enactments, the results of which were
reflected only partially in 1937 collections, exert an upward influence
on the estimates for the fiscal years 1938 and 1939. Thus the Revenue
Act of 1936, by raising rates, extending the scope of taxable income,
and introducing the undistributed profits tax, made very definitely
for larger individual and corporate income tax collections. Being
first applicable to incomes of the calendar year 1936, it affected the
fiscal year 1937 collections only from January through June, whereas
the entire income tax collections for the fiscal years 1938 and 1939 wUl
be affected by these provisions. Similarly the estate tax provisions of
the Revenue Act of 1935, by raising the rate scale, lowering the exemption, extending the period for fUing returns, and permitting the choice
as to whether the estate should be valued at time of death or a year
later, were only partially reflected in the estate tax collections throughout the fiscal year 1937 (when a substantial minority of the estate tax
returns were filed under the 1934 act). In making both the 1938
and 1939 estimates, however, the full year effects of these provisions
have been appraised and considered.
Obviously the Social Security Act and the Carriers Taxing Act of
1937 provide for major additions to the revenues, only partially
reflected in the fiscal year 1937 collections. Other new revenues of
smaller amount are provided by the Sugar Act of 1937, which imposes
an excise tax on sugar manufacture and a compensating duty on imports of refined sugar, and by the Bituminous Coal Act of 1937, which
imposes a regulatory tax on the sale or other disposal of bituminous
coal domestically produced. Furthermore, the preventive tax
evasion and avoidance provisions of the Revenue Act of 1937 will
tend to prevent revenue losses which might otherwise occur. The
REPORT OF THE SECRETARY OF THE TREASURY
31
anticipated results of such legislative enactments exert an effect upon
the estimates for the fiscal years 1938 and 1939.
Fiscal year 1938
Present estimates place receipts under general and special accounts
for the fiscal year 1938 at $6,321,000,000, or $1,027,000,000 higher than
the receipts of the fiscal year 1937. The rise from the 1937 level may
be ascribed primarily to two sources—the income and the social security (including carrier) taxes. Numerous other sources of receipts
are expected to yield larger collections in 1938 than in 1937, but the
increases do not approach in magnitude the $535,000,000 estimated
gain from income taxes, nor the $456,000,000 increase from social
security taxes, includmg those levied upon carriers and their employees. Moreover, against the numerous smaller increases are to be set
anticipated decreases of small amounts in the tobacco and stamp taxes
and in miscellaneous receipts, as well as a substantial decrease in the
customs.
The table on page 32 displays in summary form the estimated
amounts of receipts for the fiscal years 1938 and 1939 and the actual
amounts for 1937. Detailed receipts and estimates are presented in
table 17 on pages 378 to 384. An explanation of the estimates, for each
source contributing appreciably to the revenues, is presented below.
Income taxes.—Under this head are the receipts from individual and
corporation income taxes, both on current and on back account, and
the much smaller receipts from the excess-profits tax on corporations.
Individual income taxes, which yielded $996,000,000 on current
account in the fiscal year 1937, will, according to present estimates,
yield not far from a quarter billion more, or $1,233,000,000, in the
current fiscal year. The basic causes making for expansion include a
higher level of individual incomes in the calendar years 1936 and 1937,
a full year of collections reflecting not only application of the normal
tax to dividend income, but also the higher surtax rates made effective
by the Revenue Act of 1936, and the preventive measures set up by
the Revenue Act of 1937 against tax avoidance and evasion.
Corporation income tax collections on current account are expected
to run somewhat lower than collections from individuals in the fiscal
year 1938, as they did in 1937. Their augmentation to $1,184,000,000,
from the 1937 level of $894,000,000, is predicated on the higher aggregate corporate profits of 1936 and 1937, upon which these estimated
receipts depend, as compared with those of 1935 and 1936; also on the
alterations in the rate scale under the Revenue Act of 1936, the partial
inclusion of dividend receipts in income subject to tax, and the imposition of surtaxes on undistributed profits—influences that did not
affect the fiscal year 1937 collections until the second half year.
32
REPORT OF T H E SECRETARY OF T H E TREASURY
Actual receipts for the fiscal year 1937, and estimated receipts for the fiscal years
1938 and 1939
[In millions of dollars]
Actual,
1937
Estimated, Estimated,
1938
1939
G E N E R A L AND SPECIAL ACCOUNTS
1. Internal revenue:
(1) Income taxes:
Corporation, current
Individual, current...
Back taxes
Excess-profits tax
894.3
996.0
258. 3
26.1
1,183. 5
1,233.4
250.0
26.0
1,005.5
1,145.3
240.0
23.4
2,173. 7
2, 692. 9
2,414. 2
2,167. 5
2,692. 9
2,414.2
137. 5
281.6
23.9
693.8
651.9
69.9
450.6
79.5
141.5
303.2
25.2
613. 8
646.1
65.9
458.1
126.7
145. 7
289.4
26.8
664.8
629.4
65.4
423.2
145. 4
Total miscellaneous internal revenue taxes (collection
basis)
Adjustment to daily Treasury statement basis (unrevised)
.
.
.
.
2,188. 7
2, 279. 6
2,190.1
Total miscellaneous internal revenue taxes (daily
Treasury statement basis)
2,181. 2
2,279. 6
2,190.1
207.3
58.1
490. 5
80.5
499.6
99.2
266.4.
.3
6.1
571.0
150.3
5.0
598.8
116.9
10.0
271.8
726.3
726.7
_
..
_
Total income taxes (collection basis)
Adjustment to daily Treasury statement basis (unrevised)
Total income taxes (daily Treasury statement basis).
(2) Miscellaneous internal revenue:
Capital stock tax
Estate tax
._
.
Gift tax
Alcoholic beverage taxes
Tobacco taxes
Stamp taxes
Manufacturers' excise taxes
Miscellaneous taxes..
.
. . .
.
(3) Other internal revenue:
Social secutity taxes:
With respect to employment (title VIII)
On employers of 8 or more (title IX)
..
Total social security taxes..
Taxes upon carriers and their employees
Tax on unjust enrichment _
Total other internal revenue taxes (collection basis) __
Adjustment to daily Treasury statement basis (unrevised)
Total other internal revenue taxes (daily Treasury
statement basis)
-16.2
-7.6
-13.4
268.4
726.3
725.7
4, 634.2
5,698. 7
5,330. 0
4,597.1
5, 698. 7
5, 330.0
486.4
415.3
390.4
3. Miscellaneous revenues and receipts (daily Treasury statement
basis)
_
210.3
206. 5
199.0
Total receipts, general and special accounts (daily Treasury
statement basis)
_
5,293.8
6,320.6
5,919.4
Total internal revenue taxes (collection basis)
Adjustment to daily Treasury statement basis (unrevised)
Total internal revenue taxes (daily Treasury statement basis)
2. Customs (daily Treasury statement basis) __
._ _.
-37.1
REPORT OF THE SECRETARY OF THE TREASURY
33
Collections of back income taxes are expected to decline moderately
in the present fiscal year to $250,000,000 as against the 1937 volume
of $258,000,000. A slight rise in the relatively small receipts from the
excess-profits tax is estimated for the fiscal year 1938 as a result of the
improvement in corporate profits in the calendar years 1936 and
1937, already referred to.
Social security {including carrier) taxes,—The comparatively recent
enactment of this group of new taxes largely accounts for the sharp
rise in 1938 of estimated receipts therefrom. As stated in an earlier
section of this report, the 1937 fiscal year collections from taxes levied
under the Social Security Act are representative of hardly more than
4 full months^ receipts. In the case of title VIII, even the 1938
receipts—though covering a much larger fraction of a year than the
1937—wUl not be representative of a full year, because of the technical
circumstance that after the December 1937 liabUities are settled,
payments wiU be due only quarterly, with the due date for the second
quarter of 1938 falling in July. Hence coUections emanating from
all of the liabilities of April and a small portion of those of May 1938,
which would have entered fiscal year 1938 receipts, were payments on
a monthly basis continued, wiU be received in the fiscal year 1939.
The present conclusion is that the title VIII coUections of $207,000,000
in the fiscal year 1937 will be succeeded by collections of $491,000,000
in the fiscal year 1938.
The title I X estimate for the fiscal year 1938 collections covers a full
12-month liability, as compared with the part-year liabUity covered
in the fiscal year 1937 receipts. Furthermore, the tax rate under this
title advances from 1 percent on 1936 pay roUs to 2 percent on those
of 1937, with a continuation of the tax credit of up to 90 percent for
amounts paid as similar taxes to States whose unemployment insurance laws had been approved by the Social Security Board. All
States and Territories have now passed approved laws, which under
certain conditions mil entitle their taxpayers to this tax credit.
However, the title I X collections during the fiscal year 1937, and to
a much lesser extent during the fiscal year 1938, in respect of calendar
year 1936 liabUities, were swollen by the nonrecurring collection of
taxes at the full 1 percent on pay rolls from the 13 States and 2 Territories whose unemployment insurance laws had not been passed in
time to qualify their taxpayers for the tax credit. Receipts under
title IX, amounting to $58,000,000 in the fiscal year 1937, are estimated at $81,000,000 for the fiscal year 1938.
CoUections under the Carriers Taxing Act, approved June 29, 1937,
are expected to display a very great increase over collections under the
disputed prior act. This rise is augmented in the fiscal year 1938 by
the fact that liabilities accrued for the first 9 months of 1937 did not
become due untU November 30. Hence the estimate of receipts from
34
REPORT OF THE SECRETARY OF THE TREASURY
this source for the fiscal year 1938 covers, in effect, the liabUities of
five quarters. Whereas collections in the fiscal year 1937 under the
former act amounted to but $287,000, estimated receipts for the fiscal
year 1938 amount to $150,000,000.
Capital stock tax.—Receipts from the capital stock tax, according
to the present estimate, wUl advance slightly to $142,000,000 in the
fiscal year 1938, from actual collections of $137,000,000 in the fiscal
year 1937. One factor in this advance is the presumable increase,
associated with larger business profits, in adjusted declared value of the
capital stock of corporations from December 31, 1935, to December
31, 1936, since fiscal year 1938 collections depend chiefly on adjusted
declared value at the end of the calendar year 1936.
Estate and gift taxes.—-From the standpoint of revenues, the estate
tax is much the more important of these two levies. In the fiscal
year 1937, when a majority of the estate tax returns were filed under
the Revenue Act of 1935, with its higher rates and lower exemption
as compared with the Revenue Act of 1934 and prior acts, coUections
from the tax reached the record total of $282,000,000. For the fiscal
year 1938, when practically all returns will be filed under the 1935
act, still larger collections, of $303,000,000, appear to be in prospect,
even after allowance is made for a probable decrease in number of
returns as executors take adv^antage of the extension of the filing
period and the option of valuing estates at death or one year later.
Collections from the gift tax have never attained much relative importance except in the fiscal year 1936. The $160,000,000 collected
in that year on the tremendous volume, of gifts made principally after
the effective date of the higher estate tax rates contained in the Revenue Act of 1935 but prior to the effective date of rate increases on
gifts was followed by collections of but $24,000,000 in the fiscal year
1937. For the fiscal year 1938 an estimate of $25,000,000 is made,
on the assumption that the volume of gifts in the calendar year 1937
will approximate that in the calendar year 1936 but will in part be
subject to the rise in applicable rates as additional gifts are made.
Liquor taxes.—Receipts from this source in the fiscal year 1938 are
expected to aggregate $614,000,000 as against actual collections of
$594,000,000 in 1937. Of the two large revenue-producing taxes in the
group, that on beer is expected to rise more in 1938 than that on
domestic distilled spirits. A slight increase is estimated for most of
the small liquor taxes, although a decline in collections from imported
distUled spirits, as domestic whisky becomes sufficiently aged, is
indicated for the current fiscal year.
Tobacco taxes.—Tobacco is one of the few tax groups expected to
yield less revenue in the fiscal year 1938 than in 1937, so that the
estimate shows a slight downturn to $545,000,000 in 1938 from the
record receipts of $552,000,000 during the past fiscal year. The
REPORT OF THE SECRETARY OF TBtE TREASURY
35
decline is expected to affect not only the major product—cigarettes—•
but also the lesser products in the group, with the exception of snuff,
consumption of which shows little variation.
Stamp taxes.—"WTiUe actual collections in 1937 for this group of
small taxes approximated, in the aggregate, $70,000,000, the estimate
for i938 approximates only $66,000,000.
Manufacturers^ excise taxes.—Estimated receipts of $458,000,000 for
the fiscal year 1938 will, if realized, constitute the maximum collections
of record for excise taxes of this type. The comparable record, however, does not extend back further than the fiscal year 1933—the first
year in which the increased number of excises imposed by the Revenue
Act of 1932 was fully reflected in the revenues. In 1937 actual,collections totaled $451,000,000.
Not all the separate excises are expected to contribute to the gain of
collections in 1938. On the contrary, a larger yield principally from
gasoline and from electrical energy is expected to offset more numerous
declines, most notable in passenger automobiles and parts and in
toilet preparations. These conflicting changes reflect the dissimilar
impact of cyclical changes in business on various products.
Miscellaneous taxes.—The sharp increase displayed by this group
in the aggregate, from actual collections of $79,000,000 in the fiscal
year 1937 to estimated collections of $127,000,000 in the fiscal year
1938, results from the inclusion in the latter year of receipts from two
new taxes in connection with which no liabilities were due or paid in
the fiscal year 1937. The more important of these new taxes in point
of size is that on sugar, which is estimated to yield $44,000,000 in
1938. The second new source, the bituminous coal tax, is of minor
importance in revenue yield, yet serves to outweigh the decline of
revenues from a few of the other miscellaneous taxes.
Customs.—After four consecutive years of recovery in customs receipts, extending from a low of $251,000,000 in the fiscal year 1933
to a high of $486,000,000 in 1937, receipts from this source appear
likely to decrease rather m a r k e d ^ in the fiscal year 1938 to $415,000,000. Decline of receipts in 1938, because of reduced imports, is
estimated for most of the important commodities which produce customs revenues, including agricultural products, vegetable oils, whisky,
wool, cotton manufactures, metals, and sundries. Among the diverse
influences maldng for reduction of such imports are a larger domestic
crop output in 1937 than in the drought year 1936, the partial displacement of imported whiskies by the aged domestic product, and
smaller markets for cotton textiles and wool.
Miscellaneous revenues and receipts.—Unimportant changes appear
likely to take place in collections from these sources in the fiscal year
1938. A small decline is, however, indicated from total collections
of $210,000,000 in 1937 to an estimated figure of $207,000,000 in
1938.
36
REPORT OF THE SECRETARY OF THE TREASURY
Fiscal year 1939
For the fiscal year 1939 a slight decline in receipts under general and
special accounts is anticipated, from the exceptional total of $6,321,000,000 estimated for 1938 to $5,919,000,000. The latter estimate, however, points to a volume still markedly above the 1937
figure of $5,294,000,000.
For 1939, as for 1938, the net expansion over the 1937 level is
attributable, in the main, to social security and income taxes. Smaller
gains from 1937 are indicated for the capital stock, estate, and. gift
taxes, as well as for the group of miscellaneous taxes as a whole, but are
more than outweighed by dechnes in numerous other sources, which
sufl5.ce even to reduce to some extent the gain recorded by the social
security (including carrier) and the income tax estimates. Moreover, though a net expansion over 1937 is anticipated, receipts frorn
most sources, including the two important groups of taxes last mentioned, are expected to be lower in the fiscal year 1939 than in the
fiscal year 1938.
Income taxes.—The yield on current account from individual income
taxes will, according to present estimates, dechne in the fiscal year
1939 to $1,145,000,000 from $1,233,000,000 in the current fiscal year.
A sustaining influence, affecting the fiscal year 1938 receipts in the
second half year only, but the fiscal year 1939 receipts throughout the
entire year, is the stoppage by the Revenue Act of 1937 of loopholes
utUized by individuals to reduce or avoid tax payment.
The estimate of corporation income tax collections on current account for the fiscal year 1939 drops to $1,006,000,000, or $178,000,000
below that for 1938. Further retardation of collections on back accoimt, both from the corporations and from individuals, appears likely
to reduce the back tax coUections from $250,000,000 in 1938 to
$240,000,000 in 1939. The revenue derived from the excess-profits
tax is also expected to recede.
Social security {including carrier) taxes.—It has been explained above
that, due to a shift from a monthly to a quarterly basis of payment,
receipts under title VIII of the Social Security Act will cover in the
fiscal year 1938 less than a 12-month liabUity, as contrasted to collections in 1939 for a full 12-month liability. The effect of this shift
is the main factor accounting for an estimated increase in receipts
under this title from $491,000,000 in 1938 to $500,000,000 in 1939.
The estimated collections under title I X likewise increase, from
$81,000,000 in the fiscal year 1938 to $99,000,000 in the fiscal year
1939; but here the controUing factor is the advance in the rate of tax
from 2 percent on pay rolls for the calendar year 1937 to 3 percent
on those for the following year.
Receipts from taxes on carriers and their employees, the third in
the group of social security levies^ decline very sharply according to
REPORT OF THE SECRETARY OF THE TREASURY
37
present estimates between the fiscal years 1938 and 1939, from
$150,000,000 to $117,000,000. This reduction reflects, in part, the
inclusion of the liabilities of only four quarters in the 1939 estimate,
whereas the 1938 estimate comprises, as explained above in the
discussion relative thereto, the liabUities of five quarters.
Capital stock tax.—The estimated increase of receipts under this
tax from $142,000,000 in the fiscal year 1938 to $146,000,000 in the
fiscal year 1939 is a result of the increased adjusted declared valuation
of the capital stock reflecting the increase in its book value. Thus,
the fiscal year 1939 collections for a majority of corporations are based
on the adjusted declared value of the capital stock on December 31,
1937.
Estate and gift taxes.—Estate tax collections in the fiscal year 1939
are estimated at $289,000,000, a figure intermediate between the
actual coUections of $282,000,000 in the fiscal year 1937 and the
estimated receipts of $303,000,000 in the fiscal year 1938. . Though it
is possible that more returns wiU be filed than during the current
fiscal year, in which declining property values offer a reason for deferment of filing, the increase in number of returns is likely to be more
than offset by the lower valuation of estates for which they are filed.
Yet while thus decreasing moderately from the estimate for 1938,
the yield of the tax wUl probably hold above the 1937 level, since an
important minority of the returns in that year were filed under the
lower rate-scale and higher exemption of the Revenue Act of 1934.
The much less important gift tax may produce in the fiscal year
1939 somewhat more revenuecthan in the fiscal year 1938, even if a
relatively constant volume of transfers is assumed, because of the
higher rates that apply to new gifts made by former donors. The
present estimates set receipts from this source in 1939 at $27,000,000,
as against $25,000,000 in 1938.
)-. Liquor taxes.—The revenue from liquor taxes, now forecast at
$565,000,000, compares with estimated receipts of $614,000,000 for
the fiscal year 1938. The same products that account for the bulk
of the revenue from this source—beer and domestic distUled spirits—
wUl account for the bulk of the decline, though the shrinkage of
receipts is expected to be considerably less important for beer than
for distilled spirits.
Tobacco taxes,—Continuance into the fiscal year 1939 of the 1938
downturn of receipts from tobacco taxes is indicated by the estimate
of $529,000,000 in 1939 as compared with the estimate of $545,000,000
for 1938.
Stamp taxes,—Collections from this minor revenue source are
expected to recede by less than half a mUhon doUars in the fiscal year
1939 to roundly $65,000,000. WhUe stamp taxes upon stock transfers
may produce a somewhat larger amount than in the fiscal year 1938,
38
REPORT OF T H E SECRETARY OF T H E TREASURY
the slight gain appears likely to be outweighed by decline in amounts
from the various other transactions and products for which such
collections are separately reported.
Manufacturers^ excise taxes.—A prospective decrease in receipts
from all individual excises except that on electrical energy reduces
estimated aggregate receipts from this group of levies to $423,000,000
in the fiscal year 1939, from the figure of $458,000,000 estimated for
the fiscal year 1938.
Miscellaneous taxes.—Although decreases among miscellaneous tax
receipts are more numerous than increases, according to the estimates, the aggregate for the group as a whole is expected to advance in
the fiscal year 1939 to $145,000,000, from an estimated $127,000,000 in
the fiscal year 1938. The rise is predominantly a result of anticipated
expansion in collections under the new tax upon sugar, which wUl in
1939 cover a full 12 months for the first time.
Customs,—Estimated customs receipts of $390,000,000 in the fiscal
year 1939 reduce such receipts to practically the 1936 level. Reasons
suggesting a decrease in imports of commodities subject to customs
duties have been enumerated above. For 1939, reduction in sucih
imports may not be of such general character as during the fiscal year
1938; but it is anticipated that small gains in receipts on some articles
wUl be counteracted by a further decrease in receipts from agricultural
products and whisky, and a downturn in receipts from sugar.
Miscellaneous revenues and receipts.—For the fiscal year 1939 a
further small decline in aggregate collections from miscellaneous
sources is presaged, the estimates pladng the total at $199,000,000 as
compared with $207,000,000 in 1938.
ESTIMATES OF EXPENDITURES
Actual expenditures for the fiscal year 1937 and estimates for the
fiscal years 1938 and 1939 are shown in the table following. The
estimated expenditures are furnished by the Bureau of the Budget
and are based upon a careful survey of the needs of the various departments and bureaus of the Government.
REPORT OF THE SECRETARY OF THE TREASURY
39
Expenditures for the fiscal year 1937, on the basis of daily Treasury statements
(unrevised), and estimated expenditures for the fiscal years 1938 and- 1939
A c t u a l , 1937
E s t i m a t e d , 1938
E s t i m a t e d , 1939
GENERAL AND SPECIAL
ACCOUNTS
EXPENDITURES
I . General:
D e p a r t m e n t a l : 12
Legislative e s t a b l i s h m e n t
Executive proper
State D e p a r t m e n t
Treasury Department
W a r D e p a r t m e n t (nonmilitary)
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
D e p a r t m e n t of tbe Interior
D e p a r t m e n t of Agriculture
D e p a r t m e n t of C o m m e r c e
D e p a r t m e n t of L a b o r
S h i p p i n g Board
U n i t e d States M a r i t i m e C o m mission
R u r a l Electrification A d m i n istration:
Loansother
I n d e p e n d e n t offices a n d commissions
Unclassified i t e m s
A d j u s t m e n t for disbursins^ officers' checks o u t s t a n d i n g
Total departmental 2
P u b l i c buildings i . . .
Public highways 1
R i v e r a n d h a r b o r w o r k a n d flood
control.
R e c l a m a t i o n projects i3
_
P a n a m a Canal 1
P o s t a l deficiency (current) <
P o s t a l deficiency (prior years) ^
Railroad Retirement Act:
A d m i n i s t r a t i v e expenses
-.
Annuity payments
Unclassified
Social S e c u r i t y A c t :
A d m i n i s t r a t i v e expenses:
Social S e c u r i t y B o a r d
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
Grants to States:
. Social S e c u r i t y B o a r d . . . . . .
D e p a r t m e n t of L a b o r
Treasury Department
Unclassified
U n i t e d States H o u s i n g A u t h o r i t y *
D i s t r i c t of C o l u m b i a ( U n i t e d States
share)
N a t i o n a l defense: 1
Army
Navy
Veterans' Administration 1
Agricultural A d j u s t m e n t p r o g r a m :
Agricultural A d j u s t m e n t Administration ^
A g r i c u l t u r a l A d j u s t m e n t Adm i n i s t r a t i o n ^ _.
Agricultural A d j u s t m e n t Adm i n i s t r a t i o n (act A u g . 24,
1936)...
Agricultural c o n t r a c t adjustments
Soil Conservation a n d D o m e s tic A l l o t m e n t A c t
.
F a r m Security Administration: 1
Loans
Other
Civilian Conservation Corps 1
For footnotes, see p. 43.
$25,940,100.00
506,700.00
20, 771, 900. 00
153,195, 700. 00
2, 098,000.00
41, 096, 900. 00
$21, 956,800
441,600
19,137,500
157,497, 500
2, 044, 000
43,508,800
103,898, 200. 00
125, 914,100. 00
43, 298, 500. 00
16,8'JO, 100.00
101, 634,800
118, ] 40,000
46, 628, OCO
17, 455,000
17, 681, 000. 00
50,000,000
11,000,000.00
1, 432,000. 00
40,900,000
1,600,000
43, 433,989.18
'^1,182,841.22
42,806,800.00
43,800, 500
605, 287, 235. 66
606. 480, 000. 00
664, 744.500
"504, 554,433.14
33, 990,146. 78
89, 703, 051. 32
616, 490, 900. 00
58,107, 000. 00
175, 500,000. 00
664, 753, 300
47,150, 000
100, 950, 000
140, 478, 749.80
5, 206, 778. 61
11,917,182.08
48, 321, 786. 31
<^ 6, m , 841.78
151, 223,100. 00
41,462, 000. 00
10,406, 000. 00
29, 622, 000. 00
159, 968,800
49, 674, 000
10, 090,000
18,193,000
1, 491,898.84
3,985,323. 28
1, 442.82
2,197, 000. 00
2, 216, 000
15, 433, 916. 68
101,844.48
295,198. 61
22,895,000. 00
22, 000.00
304, 000. 00
20,856,000
49,000
325,000
162,890, 585. 79
6, 215, 996.14
7,819, 415. 33
2,181. 70
233,800,000. 00
7,975,000.00
8, 700, 000. 00
301,000,000
8, 000,000
8, 000,000
$23,077, 257.35
502,152. 39
17, 698,828. 67
147, 439, 619. 30
3,214,465.19
38, 686,338.83
«^, 6SS, 327. 06
t> 86,907,977. 42
101, 265. 690. 36
30,178.077.46
15, 836, 005. 39
«/, 007,055.48
«J, 080,523.51
939,581.29
-732,802. 42
5, 000, 000. 00
5, 000,000
409,882,900.00
541,005, 200.00
583, 682,800. 00
427, 796,000
577,827,400
643,610.000
10, 765,452.04
2, 077,000.00
36,000,000
136,000,000
6, 000,000.00
359, 027, 974.48
« 4.97, 083, 719. 01
580, 234, 708. 98
<^ 21,505.83
42, 317,928.82
21, 600,000. 00
116, 799, 598. 81
3,900,000. 00
50,000
357,199, 796. 39
400,000,000.00
400,000,000
321,130,997. 53
8,000,000.00
2,000,000.00
310, 000,000.00
15,000,000
6, 750,000
230,000,000
40
REPORT OF T H E SECRETARY OF T H E TREASURY
Expenditures for the fiscal year 1937, on the basis of daily Treasury statements
(unrevised), and estimated expenditures for the fiscal years 1938 and 1939—COD.
A c t u a l , 1937
E s t i m a t e d , 1938
E s t i m a t e d , 1939
GENERAL AND SPECIAL
ACCOUNTS—Continued
EXPENDITURES—Continued
I. General—Continued.
F a r m Credit Administration: i
C r o p loans
Other
Unclassified
Tennessee Valley A u t h o r i t y i
I n t e r e s t on t h e p u b l i c d e b t
Refunds:
Customs
Internal revenue
Processing t a x on farm products.
.
Subtotal
-
I I . Recovery a n d relief:
Agricultural aid:
F e d e r a l F a r m M o r t g a g e Corporation—reduction in interest r a t e on mortgages
Federal land banks:
C a p i t a l stock
S u b s c r i p t i o n s t o paid-in
surplus
R e d u c t i o n in interest rates
on mortgages
_.
Relief:
F e d e r a l E m e r g e n c y Relief Administration: 8
Reconstruction
Finance
C o r p o r a t i o n funds
Other
Civil W o r k s A d m i n i s t r a t i o n . . .
Civilian Conservation C o r p s . . .
D e p a r t m e n t of Agriculture, relief . .
. . . -_ . .
P u b l i c w o r k s (including w o r k re•
lief):
R e c l a m a t i o n projects '_
Public highways
River a n d harbor work and
flood c o n t r o l - .
R u r a l Electrification A d m i n i s tration:
Reconstruction
Finance
C o r p o r a t i o n funds
Other
W o r k s Progress A d m i n i s t r a tion
Other:
Administrative
expenses.
Public Works Administration
Legislative e s t a b l i s h m e n t . .
State D e p a r t m e n t . . .
Treasury Department:
Public buildings
Other
W a r D e p a r t m e n t (non*
military)
N a t i o n a l defense:
Army
Navy
D e p a r t m e n t of J u s t i c e
D e p a r t m e n t of t h e I n t e r i o r .
D e p a r t m e n t of A g r i c u l t u r e D e p a r t m e n t of C o m m e r c e . .
D e p a r t m e n t of L a b o r
Veterans' Administration..
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 .
Unclassified i t e m s
1
For footnotes, see p. 43.
•
$28,212,110.10
« 958,585.00
18, 293.78
« 41,995,141.08
'* 866, 384,330.90
« $10,205,000.00
9, 522, 300.00
o $7,700,000
3 063 900
46,000,000.00
927,000,000.00
41,000,000
976 000 000
16, 649,408. 30
32,848,860. 38
16,000,000.00
31,910,900. 00
16,000,000
34,808,800
6, 615, 773. 54
15,000, 000.00
15,000,000
4, 297,089,142. 24
4, 670,969, 200. 00
4,846,421,400
5. 000, 000.00
8, 350,000
« 3,847,885.00
4, 900,000. 00
35,198,811.40
30,000,000. 00
32,830,087.17
20,000,000. 00
21, 200,000
437, 672. 50
11, 963, 614. 00
296, 750. 72
64, 676,732. 28
1,800,000.00
150,000.00
75,000
28,055,100.00
104,640,100.00
10,763,000
39,120,000
476, 249.44
9, 739, 350. 60
260, 908, 921.92
•
94, 483, 516. 42
36,168, 000. 00
2, 282, 787. 45
7,971,444.14
33,800,000.00
5, 714,800.00
8,000,000
1,896, 446, 658. 29
1, 322,000,000.00
100 000 000
27,431,347.70
1,094,468.38
68,904.69
14, 500,000. 00
465,000.00
6,100.00
8 800 000
42, 259,124. 39
37,200,437.49
16,150,000. 00
25,849,800.00
5,900,000
21,838.77
8,500.00
19, 204, 505.16
59,800,730.48
937,618.09
83,712,826.75
62,136,316.23
5,314,206.81
14,894,691.32
409,684.52
10,867,200.00
16,280,000.00
750,000.00
40,200,300.00
22,298,400.00
565,400.00
7,641,600.00
36,500.00
9,020,000
12,230,442.60
117,729.97
716,837.57 1
16,375,400.00
2,936,000
500,000
2,220,000
REPORT OF THE SECRETARY OF THE TREASURY
41
Expenditures for the fiscal year 1937, on the basis of daily Treasury statements
(unrevised), and estimated expenditures for the fiscal years 1938 and 1939—Con.
Actual, 1937
E s t i m a t e d , 1938
E s t i m a t e d , 1939
G E N E R A L AND SPECIAL
ACCOUNTS—Cbntinued
EXPENDITURES—Continued
II. Recovery and relief—Continued.
Aid to home owners:
Home loan system:
Reconstruction
Finance
Corporation funds:
Home loan bank stock.
Federal savings and loan
associations
Emergency housing
United States Housing Authority
._ . .
Federal Housing Administration:
Reconstruction F i n a n c e
Corporation funds
Other .
Farm Security Administration 10
Miscellaneous:
Administration for Industrial
Recovery
Emergency relief
Subtotal
III. Revolving funds (net):
Agricultural aid:
Commodity Credit Corporation:
Reconstruction
Finance
Corporation funds
...
Other Farm Credit Administration:
Reconstruction
Finance
Corporation funds:
Crop production loans .
Regional agricultural
credit corporations...
Loans to joint stock
land banks
Farm Credit Administration.
Unclassified
Other
Ptiblic works:
Loans and grants to States,
municipalities, etc
Loans to railroads
Miscellaneous:
Export-Import Bank of Washington:
Reconstruction
Finance
Corporation funds
Other
Reconstruction Finance Corporation—direct loans and
expenditures
Subtotal
IV. Transfers to trust accounts, etc.:
Old-age reserve account
Railroad retirement account
Adjusted service certificate fund
Government employees retirement
funds (United States share):
Civil service retirement fucd...
Foreign service retirement fund.
Canal Zone retirement fund
Alaska R a i l r o a d retirement
fund
Subtotal
For footnotes, see p, 43.
$20,664,100.00
$4, 734,900.00
22,183.66
50, 734,419. 78
23,352,000.00
16, 434, 676.15 }
305,403.98
209, 695, 567.17
$5,075,000
11,000,000.00
10,000,000
149,484,000.00
6,345,000
500.00
4.873.17
3,079, 266, 645. 06
26, 867,000.00
900,000,000
1,979, 660. 600.00
1,138,304,000
'^111,812,104.91
24,347. 57
'^ 810,401. 55
« 505,000.00
« 200,000
« 13,933,501.37
"4,517,000.00
« 5,589,000
« 273,430.64
" 15,600.00
338, 545. 49
<^ 1,072.04
« 3,146,190.07
« 7,974,100.00
«4,250, bob
125, 000,000.00
200, 000,000
° 333,864,455.25
<^ 150,000,000.00
"50,000,000
» 243,569,164.51
» 37,778,200.00
141,961, 000
265,000,000.00
385,000,000.00
137,536,000. 00
475,000,000
117, 250,000
72,392,000.00
188,000. 00
600, 000.00
74, 244,000
187.600
600,000
233, 600. 00
224,480, 428. 44
'^3,118,619.22
« 2,545,584.75
1, 092,873. 79
« 556, 665,424.68
46,050,000.00
185, 300.00
500, 000.00
868,400, 724. 68
.
176,000.00
175,000
695, 791, 000.00
667,356, 600
42
REPORT OF T H E SECRETARY OF T H E TREASURY
Expenditures for the fiscal year 1937, on the basis of daily Treasury statements
(unrevised), and estimated expenditures for the fiscal years 1938 and 1939—Con.
Actual, 1937
Estimated, 1938
Estimated, 1939
G E N E R A L AND SPECIAL
ACCOUNTS—Continued
EXPENDITURES—Continued
V. Debt retirements:
Sinking fund
Received from foreign governments
under debt settlements
Estate taxes, forfeitures, gifts, etc...
Redemption of bonds, etc., from
repayments to principal of loans
to States, municipalities, etc.,
Public Works Administration
$103,815, 200.00
$200,000. 000 00
$200,000,000
142,000.00
14, 000. 00
210,000.00
15, 000. 00
16,000
6, 990, 700.00
1, 500,000
103,971,200.00
205, 215, 700.00
201,615,000
8,105,168, 547.47
7,414,858, 300. 00
200,000,000.00
6,995,558,000
76, 000, 000
8,105,158, 547. 47
7, 614,858,300. 00
7,070, 558,000
2,811,318,310. 60
1, 294, 346, 300. 00
1,151,121,000
Excess of expenditures (-f) or receipts ( - ) . . -f 2, 811,318, 310. 60 -f 1, 294, 345, 300 00
103, 971, 200. 00
Less public debt retirements.
206, 215, 700. 00
+1,151,121,000
201, 515, 000
Subtotal . .
Total expenditures exclusive of
supplemental items
Supplemental items
G r a n d t o t a l , expenditures,
general or special accounts—
Excess of expenditures over receipts
Summary
Excess of expenditures (+) or receipts (—)
-f 2, 707,347,110. 60
(excluding public debt retirements)
Trust accounts, increment on gold, etc.,
+166,333,225.11
excess of receipts ( - ) or expenditures (-f).
+1, 088,129. 600. 00
+949,606, 000
-297, 294. 61
-4,074,480
Less national bank note retirements...
+2, 873, 680,335. 71 -f 1,087, 832, 305. 39
99, 573, 790. 50
50, 000, 000. 00
+945, 531,520
25,000,000
Total excess of expenditures (+) or
receipts ( - ) (excluding public debt
retirements)
Increase (+) or decrease ( - ) in General
FuTid balance
+2,774,106,545. 21
+920, 531, 520
+141, 200, 881 00
+4,074,480
Increase (-f) or decrease ( - ) in the public
debt.- - .
Public debt at beginning of j'^ear..
+2, 646,070, 238. 56 +1,179,033,186 00
33,778,543,493. 73 36, 424,613, 732 00
+924,606,000
37,603,646,918
Public debt at end of year
TRUST
-t-l, 037, 832,306 39
-128, 036, 306.65
36,424, 613, 732. 29
37, 603, 646,918.00
38". 528,262,918
256, 232, 632.11
266,163,694 61
277,402,920
1, 676,187. 63
39, 786,924. 30
294,439,871. 20
1,000,000 00
60,000,000 00
763,008, 300 00
36 000,000
822, 787,500
692,135, 615.14
1,079,171.994 61
1,135,190,420
233, 793,123 49
261,078,400 00
256,226,800
ACCOUNTS, I N C R E M E N T
ON GOLD, E T C .
RECEIPTS
Trust accounts
Increment resulting from reduction in the
weight of the gold dollar...
Seigniorage ^^ . . .
Unemployment trust fund
Total
EXPENDITURES
Trust accounts..
Transactions in checking accounts of governmental agencies (net)
Chargeable against increment on gold:
Melting losses, etc .
...
Payments to Federal Reserve banks
(sec. 13b, Federal Reserve Act, as
amended)
For retirement of national bank notes...
Unemployment trust fund
For footnotes, see p. 43.
127, 380,803 28
333,163 63
I
875,000 00
99, 573, 790 50
294, 386.000 00
1,000,000 00
50,000,000 00
753,008, 300 00
26,000,000
822, 787, 600
REPORT OF T H E SECRETARY OF T H E TREASURY
43
Expenditures for the fiscal year 1937, on the basis of daily Treasury statements
(unrevised), and estimated expenditures for the fiscal years 1938 and 1939—Con.
Actual, 1937
Estimated, 1938
Estimated, 1939
TRUST ACCOUNTS, I N C R E M E N T
ON GOLD, ETC.—Continued
EXPENDITURES—Continued
Old-age reserve account
Total -
.
Excess of expenditures over receipts..
Excess of receipts over expenditures
$2,126,969. 35
$13, 788,000.00
758, 468,840. 25
1,078,874, 700. 00
1,131,115,940
297,294. 61
4.074,480
166, 333, 225.11
$27,101, 640
" Excess of credits (deduct).
* Revised to adjust classification.
c The total expenditures for the fiscal year 1937 for "National defense. Navy" and for "Tennessee Valley
Authority" shown in this statement disagree with the totals for the same classification on p. 2 of the daily
Treasury statement for June 30,1937, in the amount of $1,000 due to compensating differences of that amount
between these classifications and the figures shown in the latter statement.
''Includes $22,507,108.04, representing 1 year's interest at 4}^ percent on $600,167,956.40 face amount of
bonds issued to the United States Government life insurance fund pursuant to sec. 6 of the Adjusted
Compensation Payment Act of Jan. 27, 1936.
• Includes $500,157,956.40, representing the amount certified by thie Administrator of Veterans' Affairs
for paym.ent lo the United States Government life insurance fund in 4J^ percent bonds in accordance with
sec. 5 of the Adjusted Compensation Payment Act of Jan. 27, 1936.
1 Additional expenditures on these accounts are included under "Recovery and relief," and "Revolving
funds (net)."
2 The Executive order of June 10,1933, as amended, provides for the transfer of the function of disbursement of all moneys of the United States (except those relating to the Military and Naval Escablishments,
rivers and harbors, and Panama Canal) to the Division of Disbursement, Treasury Department.. The
transfer of such functions in Washington, D. C , of the several departments and establishments subject to the
Executive order of June 10,1933, was completed on July 1,1934. Therefore, effective July 1, 1934, in the interest of economy and efficiency, the disbursements by the Division of Disbursement, Treasury Department, which appear in daily Treasury statements under the caption "Departmental expenditures" are on
the basis of checks issued. The totals shown, after making adjustment of outstanding checks of the Division
of Disbursement, relating to such "Departmental expenditures," are on the basis of checks paid as published
heretofore.
3 Expenditures under this caption for the fiscal year 1937 include only Boulder Canyon project, other
reclamation projects being included in "Departmental—Department of the Interior."
< The expenditures shown above on account of postal deficiency for the fiscal year 1937 are exclusive of
$16,245,165.06 on account of transfers of appropriations from the Post Office Department to the U. S. Maritime Commission pursuant to the act of June 29, 1936 (49 Stat. 1988). These transferred funds when expended by the U. S. Maritime Commission are classified as "Departmental—U. S. Maritime Commission."
I Represents repayment of funds by Post Office Department on account of grants for fiscal years 1926 to
1933.
8 Payable from processing taxes on farm products or advances from the Treasury to be deducted from
processing taxes.
7 Formerly classified under "Recovery and relief—Agricultural aid."
8 Includes expenditures made by Federal Surplus Commodities Corporation from funds provided for the
Federal Emergency Relief Administration.
8 Expenditures under this caption for the fiscal year 1937 include only Boulder Canyon project, other
reclamation projects being included in "Public works—All other—Department of the Interior."
10 Includes expenditures on account of subsistence homesteads.
II This item represents seigniorage resulting from the issuance of silver certificates equal to the cost of the
silver acquired under the Silver Purchase Act of 1934 and the amount returned for the silver received under
the President's proclamation dated Aug. 9,1934.
44
REPORT OF THE SECRETARY OF THE TREASURY
BUREAU OF INTERNAL REVENUE
During the fiscal year 1937 total collections of internal revenue in
the amount of $4,653,000,000 ^ exceeded collections in the preceding
fiscal year by $1,133,000,000. The total amount collected included
back income taxes of $258,000,000 which is $45,000,000, or approximately 21 percent, in excess of the back income taxes collected during
1936.
Income tax
The new settlement policy, adopted both in the Bureau in Washington and in the field service, for closing cases by agreement has
produced very satisfactory results as indicated by the number of cases
so closed during the 3^ear. Deficiencies were proposed for assessment
in 226,790 cases. Agreements consenting to the immediate assessment and collection of deficiencies were secured in 214,350 or 94,5
percent of these cases. T h e number of cases so settled exceeded the
number settled b}^ agreement in any previous year.
The field forces examined 427,559 returns and recommended changes
in tax liability in 248,643 or 58 percent of the returns examined.
Agreements consenting to the immediate assessment and collection of
deficiencies were secured in 213,894 or 86 percent of the returns in
which changes in tax liability were recommended. The agreements
secured covered over $96,000,000, which amount exceeded that in
any prior year.
The field forces recommended deficiencies of $348,000,000 and overassessments of $20,000,000, maldng the net amount of deficiencies
recommended $328,000,000.
The work of examining returns for 1934 and 1935 was practically
completed on June 30, 1937.
Miscellaneous taxes
The collections of estate tax for the fiscal year 1937 exceeded the
collections from that source for the preceding year by almost $63,000,000. Similar results were obtained with respect to the tobacco
taxes, which increased over $51,000,000; the manufacturers' excise
taxes, which increased over $78,000,000; and the capital stock tax,
which increased over $42,000,000.
The special field force, under the supervision of the Miscellaneous
Tax Unit, produced excellent results in connection with investigations
of taxes on lubricating oil and gasoline, automobiles, tires and tubes,
furs, radios, and various other articles, and of the tax on admissions
and dues. During the year the field force reported for assessment
approximately $11,000,000 in delinquent or additional manufacturers'
and miscellaneous excise taxes, penalties, and interest.
1 On the'basis of reports of collections, see p. 296.
REPORT OF THE SECRETARY OF THE TREASURY
45
Social security taxes
The MisceUaneous Tax Unit is concerned with the administration
of the taxes imposed under title VIII of the Social Security Act, which
relates to an income tax on employees and an excise tax on employers,
and the taxes imposed under the Carriers Taxing Act, approved
August 29, 1935. The Income Tax Unit administers title IX of the
Social Security Act, which imposes an excise tax on employers of
eight or more. Plans were perfected for the establishment on July
1, 1937, of a Social Security Tax Unit, which will administer the taxes
under these provisions.
Under the provisions of title VIII of the Social Security Act collections amounted to $207,000,000 during the year. Under the provisions of title IX of this act collections amounted to $58,000,000.
Collections under the'Carriers Taxing Act, approved August 29,
1935, amounted to $287,000. Collection of the tax from more than
400 taxpayers was enjoined by the United States District Court for the
District of Columbia at the time of the first due date, June 30, 1936.
All of the class I railroads and a number of their subsidiaries joined
in this suit and, as a result, collections under the act were greatly
limited.
.^ ;v
A detailed description of the work of the Bureau of Internal Keyeni^e^
will be found on pages 144 to 168 of this report.
'
/.^
CUSTOMS
Total customs receipts, on the basis of the daily Treasury statement, unrevised, amounted to $486,357,000 in the fiscal year 1937,
compared with $386,812,000 in 1936, an increase of $99,545,000. This
represented an increase of 26 percent over 1936 and 94 percent over
1933, when the duties collected on imports were at the lowest level
since the close of the World War.
More than half of the increase in receipts for the year was due to
larger dutiable imports of agricultural products and wool and wool
manufactures, which accounted for increases of $35,800,000 and
$19,600,000, respectively. Every other tariff schedule, except that of
sugar, showed increased collections. In the case of sugar, the importation of which is limited by a calendar year quota, the diminished
receipts were due merely to differences in the concentration of imports
under the calendar year quotas into the successive fiscal year periods.
The value of dutiable imports entered for consumption during the
year was $1,251,970,000, an increase of 36 percent over the preceding
year. The value of imports entered free of duty constituted 57 per•cent of the total value of all imports entered for consumption in 1937,
and 58 percent in 1936. For the first time since 1893 the value of imports exceeded the value of exports, resulting in a so-called '^unfavorable'' balance of trade of $103,000,000.
16109—38
-5
46
REPORT OF T H E SECRETARY OF T H E TREASURY
Foreign trade results and customs receipts are summarized by fiscal
years in the following table:
Merchandise exports and imports and customs receipts, fiscal years 1931 to 1937
[In millions of dollars]
Fiscal year
1931
1932
1933
1934
1935
1936._
1937
Exports
. .
.
-
. . .
_
_
-
General
imports
3,083
1,948
1,440
2,042
2,121
2,414
2,838
Excess of
Customs
exports over receipts
i
imports
2,432
1, 730
1,168
1,721
1, 786
2, 218
2, 941
651
218
272
321
335
196
-103
378
. 328
251
313
345
387
486
1 On basis of daily Treasury statements (unrevised). Includes tonnage tax in 1931.
A more detailed statement of the activities of the Bureau of Customs
is presented on pages 123 to 137 of this report.
CONSTRUCTION ACTIVITIES
Public building operations during the fiscal year 1.937, carried on
under several different programs and appropriations, resulted in
the completion or practical completion of approximately 557 buildings with a total limit of cost of $96,844,167; 388 major projects,
with a limit of cost" of $69,155,744, were placed under contract.
At the end of the fiscal year 138 projects, with a limit of cost of
$24,345,300, were either on the market for construction bids or were
practically ready to be placed on the market. Plans were being
prepared for 121 projects, to cost approximately $31,911,000. In
addition, there were 47 projects, to cost approximately $5,447,100,
for which sites had been selected or were in process of selection, but
for which the drawings had not yet been started.
Original public building program
Practically all work under the Public Building Act, approved May
25, 1926, and subsequent acts enlarging the public building program
then authorized had been completed at the end of tKe fiscal year, the
only remaining items being for work of a minor character in some of
the larger projects.
Building program in the District of Columbia
The present building program for the District of Columbia is being
carried on with funds allotted to the Department by the Federal
Emergency Administrator of Public Works and from appropriations
made directly to the Department.
:.
REPORT OF THE SECRETARY OF THE TREASURY
47
Projects completed and occupied during the year were the new
Interior Department Building, costing approximately $13,500,000;
four buildings for the National Zoological Park, costing approximately
$870,000; and an addition to the Federal Home Loan Bank Board
Building, costing approximately $1,900,000. A contract was awarded
for construction, under a limit of cost of $6,325,000, of an annex to
the Bureau of Engraving and Printing and a building for the Bureau
of Economics, Department of Agriculture. The building for the
Bureau of Economics was completed in March 1937. At the end of
the year the annex building, a warehouse for the Government Printing. Office to cost $1,400,000, the Apex Building to cost approximately
$3,780,000, and the addition to the Archives Building to cost approximately $3,610,000 were partially completed. Also numerous improvements and additional work in the various completed buildings.
had been completed or were in progress.
Program under the Public Works Administration
The number of allotments made for public buildings by the Public
Works Administration was increased during the fiscal year 1937
from 434 to 437, and the total amount of tbe allotments was increased
from $75,763,645 to $76,039,949. By June 30, 425 of these projects,
with a limit of cost of $64,349,502, had been completed; 11, with a
limit of cost of $11,683,947, were under contract; and 1, with a limit
of cost of $6,500, was in the survey stage.
Program under the emergency appropriation acts
The acts approved June 19, 1934, August 12, 1935, and June 22,
1936, provided appropriations totaling $187,918,661 for the emergency
construction of pubUc buildings throughout the country, the projects
to be selected by the Postmaster General and the Secretary of the
Treasury. Under this authorization 1,121 projects had been selected
by the end of the fiscal year 1937; 424 of these projects, with a limit
of cost of $48,588,914, had been completed; 392, with a limit of cost
of $77,632,847, were under contract; and 305, with a limit of cost of
$61,696,900, were in the preliminary stages.
Program for other departments
Funds to the amount of $32,996,800 were transferred to the Treasury
Department by other departments for 42 projects involving the rehabilitation, extension, and remodeling of old buildings, construction
of n,ew buildings, repairs, etc. Thirty-nine of these projects totaling
$16,086,800 were completed by June 30, 1937; two projects totaling
$7,425,000 were under contract; and one project to cost $4,785,000
was on the market.
48
REPORT OF THE SECRETARY OF THE TREASURY
Sale of surplus properties
Under the provisions of Public Nos. 330 and 351, approved August
26 and 27, 1935, respectively, and of certain special legislation, which
authorize the sale of'Federal buildings and sites and other real property
for which there is no further Federal need, 38 properties were sold
during the fiscal year at a total price of $1,260,730. There remained
to be sold 167 pieces of property, aggregating approximately $31,000,000 in value.
By Executive Order No. 7641, June 22, 1937, the functions of the
United States Housing Corporation, formerly under the Department
of Labor, were transferred to the Secretary of the Treasury to" be
performed by the Secretary through the Director of Procurement.
The Treasury Department Appropriation Act, approved May 14,
1937, provided an appropriation for expenses necessary to wind up
the affairs of the Corporation and effect its dissolution. There remain
to be disposed of under this arrangement 246 properties valued at
approximately $128,394.
Repairs and equipment
During the year a total of $1,606,945.11 was spent for the repair
and equipment of Federal buildings in the custody of the Treasury
and Post Office Departments.
Detailed information concerning aU building programs and appropriations will be found in the abstract of the report of the Procurement Division on pages 182 to 189 of this report.
TREASURY ACTIVITIES UNDER THE PROVISIONS OF THE SOCIAL
SECURITY ACT
The Social Security Act, approved August 14, 1935, provides for
grants to the States for old-age assistance, for unemployment compensation administration, for aid to dependent children,^ for maternal
and child welfare, for public health work, and for aid to the dependent
blind. The Secretary of the Treasury makes payments to the States,
from sums appropriated for the various purposes, of amounts certified
by the Social Security Board or other governmental agency responsible
for their determination under the provisions of the act.
Unemployment trust fund
Under section 904 (a) of the act estabhshing in the Treasury an
unemployment trust fund, the receipts of State unemployment funds
are paid over to the Secretary of the Treasury for credit to the unemployment trust fund. The Secretary of the Treasury is authorized
and directed to pay out of the fund to any State agency such amount
REPORT OF THE SECRETARY OF THE TREASURY
49
as it may requisition, not exceeding the-amount standing to the account
of such State agency at the time of such payment. The status of the
fund as of June 30, 1937, is shown on page 93 of this report.
Collection of taxes
The income tax upon the wages of employees and excise taxes on
employers, imposed under titles VIII and I X of the act, are collected
by the Bureau of Internal Revenue. The amounts of taxes collected
are shown on pages 152 and 159.
Public health work
Title VI of the Social Security Act authorizes an appropriation for
assisting the States, counties, and other political subdivisions in
maintaining adequate public health services, and a further appropriation for expenditure by the Public Health Service for investigation of
disease and problems of sanitation. A report of the activities of the
PubUc Health Service under this title will be found on page 203.
Old-age reserve account
Title I I of the Social Security Act established a system of Federal
old-age benefits. Section 201 (a) of the act established an account in
the Treasury to be known as the ^'Old-age reserve account." The
Secretary of the Treasury is required to submit annually to the Bureau
of the Budget estimates of the appropriations required to be made to
this account. A statement concerning the finanpial status of the
old-age reserve account is shown on page 92 of this report.
Section 201 (f) of the act requires that ^The Secretary of the
Treasury shall include in his annual report the actuarial status of
the account." The term ^'actuarial status" is mterpreted to mean a
comparison of future benefit payments with funds on hand plus
future income of the accoimt. Since benefit payments and appropriations are not equal in each year, it is necessary for purposes
of comparison to discount all money amounts to a common date,
that is, the comparison must be made in terms of '^present value."
The valuation balance sheet shown on page 51 indicates the actuarial
status of the old-age reserve account as of June 30, 1937. The
figures are based upon certain valuation assumptions which are set
forth in a statement following the balance sheet. I t will be seen t h a t
the amount of funds on hand plus the discounted value of assumed
appropriations equivalent to 95 percent of title VIII taxes is equal to
the discounted value of future benefit payments. This means that
amounts equivalent to title VIII taxes will be sufficient to cover
administrative expenses, not exceeding 5 percent of such taxes, and
50
REPORT OF THE SECRETARY OF THE TREASURY
appropriations sufficient to support the benefit payments on a 3 percent
reserve basis, provided that future experience in respect to mortality,
new entrants, average earnings, rates of retirement, etc., agrees with
the valuation assumptions on which the calculations are based. Since
the system has been in operation only 6 months, the experience of the
past is scarcely sufficient to serve as an index of what the future may
produce. Future valuations may be expected to disclose either a
' deficit or a surplus in the actuarial status of the account, because it is
certain that future experience will not agree precisely with the valuation assumptions.
Obviously it is impossible to forecast with any great accuracy the
amount of benefits which will become payable many 3'^ears in the
future. Past experience will never prove to be a precise index of
the amount of future benefit payments, but, nevertheless, periodic
valuations will reflect probable future costs with sufficient accuracy to
serve all practical purposes. The major purpose of the reserve plan
of financing is to distribute the cost of old-age benefit payments in a
reasonably equitable manner. The purpose of periodic actuarial
valuations is to measure probable costs as accurately as possible.
For those who are not familiar with the technical processes of an
actuarial valuation, the following statement of general principles may
be of assistance in understanding the valuation balance sheet.
If it is known that a certain number of individuals of a given age
are covered by the act, the number who will die during each succeeding
year and the number who will survive to any given age may be
readily estimated by reference to a mortahty table derived from past
mortality experience covering this class of individuals. If the
average earnings of these individuals are assumed to remain constant
to retirement date or prior death, and if it is known what proportion
of those reaching age 65 will retire at that time, and at each age
thereafter, a complete schedule of year by year expenditures and
assumed appropriations can be readily prepared. This may also be
done on the basis of assumed changes in rate of pay if this should be
found desirable for purposes of greater accuracy. Similar projections
may be made for each age group and for each group of new entrants
who will come into the covered group after the valuation date. A
combination of the projected figures completes a year by year picture
of assumed future appropriations and disbursements, and when the
amounts for each year are discounted at compound interest back to
the valuation date, the totals of the discounted amounts, together
with the amount of actual funds on hand, make up the valuation
balance sheet.
In practice, the volume of calculations required to produce the
valuation balance sheet is greatly reduced by the use of prepared
tables reflecting both mortality and interest.
REPORT OF THE SECRETARY OF THE TREASURY
51
It is apparent that any system of taxes producing revenues having
the same present value as the title VIII taxes could be substituted for
these taxes as a basis for estimating assumed appropriations without
affecting the actuarial status of the account. Thus, on the basis of
the valuation assumptions, and considering only taxes of the type
now levied, a level tax rate of about 5.34 percent applied to wages
as defined in title II of the present law is estimated to be equivalent
in revenue value to the present title VIII tax rates ranging from 2
percent to 6 percent. Similarly, a scale of tax rates calculated to be
just sufficient to meet each year's actual benefit payments plus administrative expenses would have the same discounted value as,the
present title VIII taxes. Such a scale of tax rates would range from
a very small fraction of 1 percent of wages during the first few years
of operation to more than 11 percent of wages over a period of about
75 years. The problem of determining various scales of rates which
will produce revenues having the same discounted value is an actuarial
problem. However, the question of whether the scale of tax rates
should be decreasing, level, increasing as under the present law,, increasing more gradually to a higher maximum, or increasing on the
pay-as-you-go basis to a very high ultimate rate is essentially one of
fiscal and economic policy.
Valuation balance sheet showing the actuarial status of the old-age reserve account
as of June SO, 1937
[In millions of dollars]
Covered membership on June 30, 1937:
Present value of liabilities in respect to future benefit pa3mients:
1. Death benefits
:
2. Lump-sum benefits
_
_
3. Annuity payments
_
$3,685
60
22,194
4.
Total
Present value of assets:
5. Future appropriations equivalent to title VIII taxes less 5 percent for cost of
administration
6. Funds on hand
_
7.
Total
8.
Excess balance of liabilities
$25,939
18,402
267
-
Future entrants into covered group:
Present value of liabilities in respect to future benefit payments:
9. Death benefits
10. Annuity payments
^
11.
Total
.;
Present value of assets:
12. Future appropriations equivalent to title VIII taxes less 5 percent for cost of
administration
_
13:
Excess balance of assets
18,669
7,270
5,158
21,344
26,602
33,772
7,270
The valuation balance sheet is predicated upon the following
assumptions:
1. Present membership and age distribution,—The membership of the
covered group as of June 30, 1937, is estimated at approximately
26,375,000 lives, including those who will not become eligible for
annuity benefits. The age distribution is assumed to be proportional
to the age distribution for gainfully employed persons as given in the
1930 census.
52
REPORT OF THE SECRETARY OF THE TREASURY
2. Expected growth in membership and average age of new entrants,—
On the basis of studies on future population growth, it is assumed that
the membership eUgible for annuity benefits will increase about 250,000
hves each year until the coverage reaches 35,000,000 lives, and will
remain constant thereafter. The average age of new entrants is
assumed to be equivalent, for valuation purposes, to a uniform entry
age of 25.
3. Mortality:—Thei calculations are based upon a mortahty table for
white males, prepared by the Bureau of the Census on the basis of the
1930 census and deaths during the period 1920-29.
4. Average annual earnings,—The annual earnings from entrance to
retirement of all individuals covered by the act are assumed to average
$967. This figure makes allowance for periods of unemployment and
for periods of employment in positions outside the scope of the act.
Since annuity benefits are not proportional to total earnings, allowance
is made for the distribution of earnings by size classes in the computation of annuity benefits.
5.- Rate of retirement.—The rate of retirement is left as a balancing
assumption. It is estimated that appropriations to the account equivalent to 95 percent of title VIII taxes will maintain the account, on a
3 percent reserve basis, at an amount sufficient to approximately
balance expenditures, if the rates of retiremerit at ages 65 and above
are such as to have the eft'ect of an approximate average age of retirement of 66% years. (This method is used only because there are no
adequate retirement data available, and because the assumption
appears to be reasonably conservative.)
The only items in the balance sheet which may require further
explanation are items (8) and (13). These are offsetting items, (8)
being a deficit, whereas (13) appears as a surplus. These figures
bring out the fact that those now covered by the act will, as a class,
receive far more in benefits than could be provided from the taxes
which they and their employers will pay under title VIII; and it is
also shown that the reverse is true in respect to those who will enter
the covered group in the future.
With regard.to the valuation assumptions, it is believed that they
are reasonably conservative in the light of present experience. However, since the method of determining the amount of the annuity
benelSt greatly favors those with low average earnings and those who
enter the system at high ages, it seems lilcely that many individuals
in the excluded groups will qualify themselves for benefits at a time
when their annuity benefit will have the greatest value in proportion
to the taxes they will pay. If this proves to be the case, and no
action is taken to reduce benefits to those entering the covered group
53
REPORT OF T H E SECRETARY OF T H E TREASURY
in the future at high ages, the cost of the system may substantially
exceed the amount of title V I I I taxes.
On the basis of the valuation assumptions given above, it is estimated that the fund will reach $50 billion in about 45 years and after
some 35 more years it will become stable at about $57 bilhon. These
figures, however, are subject to a very high degree of error because of
the obvious impossibility of forecasting benefit payments and tax
receipts over such a long period. The appropriations to the fund
are adjusted annually in accordance with current actuarial valuations
and therefore errors are not cumulative as in the case of projected
fund accumulations. Such figures, therefore, are significant only in
that they show that the fund will be extremely large.
The problem occasioned by the reserve plan of financing old-age
benefit payments is economic in nature. If title VIII taxes are
reduced, other taxes must be levied ultimately to cover benefit payments provided under existing law. I t has been estimated that by
1980 benefit payments will exceed $3.5 billion annually.
The purpose of the following table is to make clear the relationships
between the amounts of benefits and title V I I I taxes under the existing law. The table also serves to illustrate the amount of the annuity
benefits which will become payable in respect to employees of various
age and earnings classifications.
Age at entry
Amount of annuity benefit payable to
qualified individuals on attaining age
65 with level monthly earnings of—
$50
$100
$150
$200
$250
Percentage of benefits (including death
benefits) provided by combined taxes
of employer and employee in respect to
level monthly earnings of—
$50
$100
$150
$200
$250
Lives covered at January 1, 1937
Age on Jan. 1,1937:
20
_25
30
.—
35
._.-.
45
_-.
65
$420
$645
$780
$915
$1,020
390
360
330
270
210
615
570
510
390
270
735
690
645
510
330
855
795
735
615
390
975
900
825
675
450
90
77
65
54
32
12
112
94
80
68
44
19
133
114
95
78
50
23
146
126
107
89
54
26
159
135
116
97
61
181
159
138
197
170
149
Lives first covered January 1,1949, or thereafter
Age when first
covered:
20
25
$420
$645
$780
$915
$1,020
390
360
615
570
735
690
855
795
975
900
111
97
84
139
119
102
164
143
122
The preceding table shows that qualified individuals in the higher
age groups will receive relatively small annuity benefits, but that
these smaller annuities have a relatively high value in comparison
with the combined taxes of employer and employee. For example;
54
REPORT OF THE SECRETARY OF THE TREASURY
a quahfied individual of age 55 in the $100 per month earnings class
will, if retired at age 65, receive an annuity of only $270 as compared
with $645 for an individual in the same earnings class who is now age
20. On the other hand, the older employee receives benefits costing
more than five times the combined taxes which he and his employer
will pay, whereas the combined taxes payable in respect to the earnings
of the younger employee are more than sufficient to provide his
benefits..
TREASURY ACTIVITIES UNDER THE EMERGENCY RELIEF APPROPRIA.
TION ACTS OF 1935 AND 1936
The Treasury activities begun under the Emergency Kelief Appropriation Act of 1935 were extended by allocations received from, funds
made available under the Emergency Kelief Appropriation Act of
1936.
Administrative expenses
For handling the accounting, disbursing, and procurement activities
pf the Department arising out of the Emergency Relief Appropriation
Acts of 1935 and 1936, and for other administrative expenses, including the payment and clearance of checks by the Treasurer of the United
States, $60,450,001 had been allocated to June 30, 1937. Total obligations from the beginning of the program against this allocation
amounted to $52,491,463.81, and of this amount $51,046,851.77 was
disbursed. The corresponding figures as of June 30, 1936, were:
Allocations, $26,700,001; obligations, $23,989,928.91; and disbursements, $22,054,287.92. At the close of the year, approximately
13,600 persons were employed on the work financed by the allocations
for administrative expenses, and in most cases these employees
received salaries at the standard Government rate paid for similar
work in the classified service.
Work relief supply fund
The work relief supply fund of $3,000,000, established by Executive
Order No. 7151 of August 21, 1935, continued to be used in the purchase and distribution of materials, supplies, arid equipment for the
work relief program. This fund was used to reimburse the general
supply fund of the Procurement Division for purchases made through
the latter fund, and was in turn reimbursed by the departments and
agencies receiving materials. Due to the expiration on June 30, 1937,
of the appropriation contained in the Emergency Relief Appropriation
Act of 1935, out of which this fund was established, the fund is now
in process of liquidation. The net assets wUl be returned to the
appropriation up to the amount of the allocation; and any excess
REPORT OF THE SECRETARY OF THE TREASURY
55
will be covered into the surplus fund of the Treasury. On June 29,
1937, Presidential letter 7002 authorized the establishment of a new
work relief supply fund of $3,000,000 out of the appropriation contained in the Emergency Relief Appropriation Act of 1937, for use in
accordance with the provisions applicable to the then expiring work
relief supply fund.
Work relief projects
Public Health Service,—The Public Health Service received additional allocations in 1937 of $2,390,677.26, of which $1,072,677.26
was for health and sanitation activities and grants for services in
fiood areas, and the remaining $1,318,000 was for the continuation of
the national health survey begun in the previous year. This survey
represents a four-fold inventory of health and health facilities. A
disabling sickness survey covered some 900,000 families in 90 cities
and 25 rural counties; a communicable disease survey covered 250,000
families in 25 cities; an inventory of public health and medical facilities
consisted of 35,000 schedules obtained through questionnaires; and an
occupational morbidity and mortality study covered, on a scale not
heretofore feasible, data on the expectancy of industrial diseases. As
of June 30,1937, cumulative obligations against the total allocations of
$5,112,427.26 amounted to $4,963,043.53, of which $4,308,679.18 was
disbursed. Employment rose from a total of about 750 persons on
July 1, 1936, to a peak of about 1,400 persons in November 1936, and
was maintained near this level until May 1937, when it began to
decline, reaching a figure of 685 on June 30, 1937.
Coast Guard.—The Coas^t Guard received no additions during the
year to the allocation of $4,850,950 which had been received in the
previous fiscal year for its projects. These consist of repair, renewal,
and improvement of telephone lines; reconditioning, modernizing,
and construction of shore facilities of the various Coast Guard stations;
construction of w^ooden boats; and dredging at Government Island,
Alameda, Calif. As of June 30, 1937, obligations amounted to
$4,795,180.21, of which $4,185,721.45 was disbursed. The number of
persons employed decreased steadily throughout the year, at the close
of which there were less than 300 employees.
Bureau of Internal Revenue,—The allocations received by the
Bureau of Internal Revenue for its projects were increased during the
year by $3,769,176. Employment during the year decreased from
about 3,300 to about 2,100.
Allocations for the survey of miscellaneous taxes were increased
from $1,937,500 to $3,870,280 as of June 30, 1937, at which time
cumulative obligations amounted to $3,703,295.10 and disbursements
to $3,649,520.90. This survey, which is being conducted in twenty
of the largest metropolitan centers, is designed to collect delinquent
56
REPORT OF THE SECRETARY OF THE TREASURY
taxes, principally on sales of sporting goods, cosmetics, radios, electric refrigerators, jewelry, and furs and on admissions and dues.
As of June 30, 1937, this investigation had resulted in the collection
of $9,869,138.11, and the assessment of an additional amount of
$14,323,755.90.
The project involving the examination of income tax returns was
provided with increased allocations of $803,748 during the year,
making the total allocations for this project $1,575,153 as of June 30,
1937. As of the same date, obligations totaled $1,405,954.45 and
disbursements $1,404,335,03. Work on this project was discontinued May 31, 1937, by which time deficiencies had been recommended to the amount of $3,448,541.47, of which $2,760,625.76 had
been agreed to by taxpayers; and overassessments of $210,581.83 had
been recommended.
The project comprising a canvass to effect collection of delinquent
spirituous beverage taxes was continued with an increase in allocations
of $1,032,648. As of June 30, 1937, total allocations amounted to
$1,950,331, of which $1,870,837.85 was obligated and $1,835,733.37
was disbursed. Under this project, taxes and penalties aggregating
$1,707,628.65 were collected to June 30,1937.
Division of Research and Statistics,—The Division of Research and
Statistics continued its statistical analysis of income tax returns,
receiving additional allocations of $621,841 during the year. Total
allocations to June 30, 1937, for this project amounted to $1,428,288,
and total obligations to $1,383,170.40, of which $1,329,941.58 represented disbursements.
This project was designed to obtain more ample and detailed information with respect to individual incomes, reported on 1040 and
1040A returns, than would become available through the statistics of
income regularly compiled from these returns. The number of employees declined steadily through the year, falling from approximately
1,300 to about 200.
Procurement Division,—The Treasury relief art project, under the
supervision of the Procurement Division, received an increase in
allocations of $205,000 during the year. This project provides for
the employment of unemployed artists on the decoration of public
buildings. By the end of the year, 50 murals for Federal buildings had
been completed, of which 30 had been installed; 27 sculpture projects
had been completed and installed; and about 9,707 easel paintings were
executed, of which 1,499 were allocated to Federal offices and buildings,
penal institutions, hospitals, and educational institutions. As of June
30, 1937, the total amount allocated to this project was $735,784, of
which $676,521.44 was obligated, and of this amount, $646,753.80 was
disbursed. The number of persons employed on this project decreased
during the fiscal year from about 300 to 135.
REPORT OF THE SECRETARY OF THE TREASURY
57
NONFISCAL ACTIVITIES
Coast Guard
The duties of the Coast Guard embrace the three broad classifications of maritime law enforcement, of assisting, saving, and protecting
life and property on the sea and in national emergencies and disasters,
and in maintaining a state of preparedness for national defense. During the year its activities included the International Service of Ice
Observation and Ice Patrol in the North Atlantic, and oceanographic
cruises and surveys; winter patrol of the coast to aid vessels and
persons in distress; patrol of the waters oi the North Pacific Ocean,
Bering Sea, and southeastern Alaska in the enforcement of laws and
regulations for the protection of the fur seal and sea otter, game,
fisheries, and fur-bearing animals of Alaska, and of certain other laws
in Alaska; patrol for the enforcement of the Northern Pacific Halibut
Act and the Convention for the Preservation of the Halibut Fisheries
of the Northern Pacific Ocean and the Bering Sea; enforcement of the
Whaling Treaty Act; supervision of the anchorage and movements of
vessels at ports and other places where Federal regulations are in
force; enforcement of customs, navigation, and motorboat laws, and
other related laws of the United States; prevention of smuggling of
liquor, narcotics, and other contraband; removal of derelicts and other
obstructions to navigation from the paths of the marine commerce;
the preservation of life and property at sea and along the coasts, and
patrol of regattas and marine parades.
The number of lives saved or persons rescued from peril was the
highest in the history of the Service. Increasing activity has followed
the enactment of Public No. 755, approved June 22, 1936, which
extends the jurisdiction of the Coast Guard in law enforcement at sea
and upon navigable waters. The facilities of the Service have been
utilized to.great advantage in extending cooperation to other branches
of the Government in their regular duties and in meeting international
and national emergencies necessitating the services of Government
vessels and trained personnel. The largest relief expedition in the
history of the Service was dispatched during the year to assist the
American Red Cross in the Ohio-Mississippi Valley flood.
A more detailed account of the operations of the Coast Guard
will be found on pages 110 to 119 of this report.
Public Health Service
Reports on the prevalence of communicable diseases were received
from all available sources, both national and international, and the
information was compiled and disseminated to State and local health
officers and others. Health conditions in this country have remained
generally good; incomplete reports for the calendar year 1936 indicate
58
REPORT OF THE SECRETARY OF THE TREASURY
a rise of approximately 5 percent in the mortality rate from all causes,
while preliminary reports for the first half of the calendar year 1937
show a slight decline from the preceding year. A cessation in the
decline of tuberculosis mortality was noted during the year. A slight
increase in the infant mortality rate was indicated by preliminary
figures, but the downward trend of maternal mortality continued.
New low death rates were recorded for poliomyelitis, typhoid fever,
diphtheria, measles, and whooping cough. While the incidence of
smallpox showed only a fractional increase, the death rate from this
cause increased substantially, indicating the prevalence of a more
virulent form of the disease.
Gratifying results from the administration of title VI of the Social
.Security Act, under the regulations of the Surgeon General of the
Public Health Service, are becoming apparent. Through grants-inaid to States and greater cooperative efforts, the past year has wit;nessed unprecedented progress toward an integrated national health
program. The effect of this greater unity has been manifest in all
activities of the Service, and expressions of State health officers
indicate that the completion of many of their own projects was
either made possible or greatly stimnlated by direct or indirect Federal cooperation. The great extension of fuU-time local health
service and the provision for more adequately trained public health
personnel are advances deserving of special mention. A full account
of the public health work carried on under the provisions of the Social
Security Act is to be found on page 203 of this report.
In the aftermath of the flood disaster in the Ohio-Mississippi
basin, the Public Health Service rendered extensive aid in the work
of disease prevention and reclamation. The success of this work,
conducted in cooperation with other Federal agencies and with State
and local official agencies, the American Red Cross, and other organizations, is fully attested by the maintenance of remarkably good health
conditions in the flood area and the absence of epidemics. In the
acute emergency period the States were permitted to use unexpended
-balances from their Social Security allotments. In addition, $40,000
was released from the regular Public Health Service appropriation for
the prevention of epidemic diseases and used for the purchase of
biological products, and under the provisions of Public Resolution
No. 7, approved February 24, 1937, $968,000 was allotted from the
emergency relief appropriation to 10 States for flood relief. More
detailed information regarding flood work is presented on page 206
of this report.
Financed by an allocation of funds provided in the Emergency
Relief Appropriation Act of 1935, the work connected with the national health inventory is progressing, and promises to be one of the
most outstanding and important projects in the field of research in
REPORT OF THE SECRETARY OF THE TREASURY
59
national health. Approximately 10 percent of the findings in the
survey of 90 cities and 25 rural counties will be tabulated by November 1937,. and it is hoped the remaining data wiU be complete by
June 1938. This is believed to be the most extensive survey of its
kind ever riaade in this country, probably in any country, and the
results with reference to the prevalence of disabling illness, the relar
tion between illness and economic status, available medical care and
hospital facilities, and similar health factors will no doubt furnish
basic information of significant value to public health workers. The
national health inventory project received additional allocations
amounting to $1,318,000 during the year; on the average, 1,105 relief
and 73 nonrelief employees were engaged in this work.
The activity of the Public Health Service which probably was
given the greatest attention by the pubhc at large, by newspapers,
magazines of general circulation, health associations, and State and
local health departments was the campaign against venereal diseases.
There can be httle doubt that the dissolution of the mists of prudery,
which have heretofore hindered attacks on these destructive diseases,
is a most important advance in this fight against them. Articles and
editorials, speeches, and specially prepared literature have been
published and funds have been made available to conduct the actual
warfare against syphilis and gonorrhea.
For purposes of more economical administration, and in order to
release an officer for other duties, the directorship of the National
Institute of Health was consolidated with the office of the Chief of the
Division of Scientific Research on February 1, 1937. Investigations
of the cause, prevention, and treatment of diseases of man proceeded
on an extensive scale, both in the laboratories of the National Institute
of Health and in field stations..
The United States Pubhc Health Service hospital for the confinement
and treatment of drug addicts, at Lexington, Ky., was operated td
full capacity during the year, 1,507 patients having been admitted and
1,292 discharged. The contract was awarded on July 27, 1936, for
the construction of the initial group of buildings for a similar hospital
at Fort Worth, Tex.
Special studies were made concerning mental hygiene and its relation to public health, as well as research and study in the medicosocial problems of drug addiction. The Chief of the Division of Mental
Hygiene was chairman of the American delegation to the International
Congress on Mental Hygiene held in Paris, France, in July 1937.
National quarantine is chiefly concerned wilh preventing the spread
of two diseases, namely, plague and yellow fever. Plague, by reason
of efficient quarantine treatment of vessels and the ehmination of ratharborage on vessels, has been greatly reduced, permitting, duruig the
year, the establishment of the procedure of radio pratique at the ports
60
REPORT OF THE SECRETARY OF THE TREASURY
of New York and Boston. Under this plan passenger ships, meeting
the requirements specified by the Surgeon General of the Pubhc
Health Service, are permitted to enter these ports without stopping
for quarantine inspection.
The activities of the Public Health Service are more fully presented
on pages 203 to 214 of this report.
Bureau of Narcotics
The Bureau of Narcotics continued during the year the policy of
directing its principal enforcement activities against the chief violators
of the domestic narcotic laws, cooperating with customs authorities
in curbing the smuggling of drugs into the United States, and of
soliciting the cooperation of State and municipal law enforcement
^gencies in dealing with the addict and the peddler, and in prosecuting rninor infractions of the narcotic laws.
Diversion of drugs from legitimate to illicit channels through the
robberies of narcotic stocks, the forgery and false execution of narcotic
prescriptions, and the improper prescribing and dispensing of narcotics
continued to be important enforcement problems. The cases against
registered persons were only 23 percent of the total cases reported
during the year, compared with 41 percent during 1936.
The Uniform State Narcotic Law was enacted during the year by
the States of Arkansas, Idaho, Iowa, Minnesota, Missouri, Montana,
Tennessee, Texas, and Wyoming, making a total of 38 States in which
this law had been enacted, with httle or no amendment, prior to
July 1, 1937. This act, when adopted by a State, complements the
Federal laws and renders more effective the cooperation of State and
municipal law enforcement agencies.
A more complete account of the activities of the Bureau will be found
on pages 175 to 178 of this report.
ORGANIZATION CHANGES AND PROCEDURE
With a view to continued improvement in the Treasury service and
the insuring of an efficient and economical conduct of the Department's business, studies are constantly being made of Treasury administration and procedure. Among such studies during the year one of
major importance was commenced in the Customs Service and will be
carried on extensively during the next fiscal year.
Four Treasury Department orders were issued during the fiscal
year and are printed as exhibit 45, page 289 of this report. Order
No. 14 designated Treasury districts for the field services of the
Department. By order No. 15, jurisdiction over, and responsibility
for the activities of, the entire guard force of the Treasury Department in the District of Columbia were vested in the Chief of the Secret
REPORT OF THE SECRETARY OF THE TREASURY
61
Service Division. This has brought about the establishment of a
single unified guard force under the immediate direction of an agency
of the Treasury experienced in directing such forces.
For some years the Treasury Department has been housed in a
number of buildings in the District of Columbia with authority vested
in the Chief Clerk of the Department for their maintenance and
operation, except as to the Bureau of Engraving and Printing of which
the Director of the Bureau has direct charge. By Treasury Department Order No. 16, the Chief Clerk was relieved of this duty and there
was established the office of Superintendent of Treasury Buildings,
to whom was assigned the direct responsibility for the maintenance
and operation of all Treasury buildings in the District of Columbia,
except the Bureau of Engraving and Printing. Through this closer
supervision increased efficiency in these operations should result, and
the Chief Clerk will be afforded more time and greater opportunity
to devote to other responsible duties of his office.
Order No. 17 prohibits solicitation of financial aid, etc., of persons
outside the Federal service by organizations or associations composed
of Treasury Department employees.
Attention is invited to the attached reports of bureaus and divisions
of the Treasury Department and to the exhibits and tables accompanying the report on the finances.
H E N R Y MORGENTHAU,
Jr.,
Secretary of the Treasury,
To the SPEAKER OF THE H O U S E OF REPRESENTATIVES.
16109—38-
ADMINISTRATIVE REPORTS OF
BUREAUS AND DIVISIONS
63
DEPOSITS
The Office of the Commissioner of ^Accounts and Deposits has administrative supervision over the Division of Bookkeeping and Warrants and its relations to the office of the Treasurer of the United
States, over the Division of Disbursement, the Division of Deposits,
and the Section of Surety Bonds. It prepares periodic estimates of
the future cash position of the Treasury for use of the Department
in connection with its financing; prepares calls for the withdrawal of
funds from special depositaries to meet current expenditures; directs
the transfer of Government funds between Federal Reserve banks
when necessary; directs fiscal agency functions in general, including
deposits of gold certificates in the gold certificate fund for credit with
Federal Reserve banks; supervises coUections of principal and interest
on foreign obligations; keeps the accounts, and handles generally
matters relating to the indebtedness of foreign governments to the
United States, including matters arising under funding agreements;
supervises collections of railroad obligations owned by the Government and keeps the accounts relating thereto; handles the collection
•of other obligations owned by the United States which are turned over
to the Treasury by other departments for collection; and makes payments, keeps accounts, and handles matters generally relating to
awards under the Settlement of War Claims Act of 1928. The Commissioner likewise has control of the investment accounts of the
Government and is responsible for the proper custody of investments
and securities held by the Treasurer of the United States and the
Federal Reserve banks for which the Secretary is responsible, other
than those related to public debt operations. The Commissioner also
has supervision over the procedure for the maintenance of the system
of accounts and disbursements under the Emergency Relief Appropriation Acts of 1935, 1936, and 1937.
OFFICE OF THE COMMISSIONER OF ACCOUNTS AND
Combined statement of assets and liabilities of governmental corporations
and credit agencies
A combined statement of assets and liabilities of governmental cor--'
porations and credit agencies as of June 30, 1937, will be found as
table 44 on page 452 of this report. This statement is published
monthly in the Daily Statement of the United States Treasury, as
required by Executive Order No. 6869 of October 10, 1934. A summary statement of the proprietary interest of the United States in such
•corporations and credit agencies as of June 30, 1929 to 1937, inclusive,
:appears as table 45 on page 458.
Securities owned by the United States Government
The aggregate amount of securities owned by the Government on
June 30, 1937, based upon the latest reports received, was $17,606,022,695.57, as against $17,985,665,696.40 on June 30, 1936, a decrease
•of $379,643,000.83. A summary comparison of the holdings at the
•end of each fiscal year follows. A detailed statement of the securities
held on June 30, 1937, will be found as table 43 on page 449.
65
66
REPORT OF THE SECRETARY OF THE TREASURY
Summary of securities owned by the United States on June SO, 1936 and 1937
June 30,1936
June 30,1937
Increase (+) or
decrease ( - )
Foreign obligations:
-$72,093.83^
$11^1^5,714,400.13 $11,155,642,306.30
Received under debt settlements
859, 205, 363.64
-- Another
859, 205,363.64
-72, 093.83
12,014,847,669.94
Total
-J 12,014,919,763.77
-50,024,915.72*
33,614,594.86
Capital stock of war emergency corporations.
83,639,510.68
Capital stock, etc., of other governmental
• corporations and credit agencies:
7,000,000.00
Capital stock of Panama R. R Co - . .
7,000,000.00
Capital stock of Inland Waterways Corporation
1
12,000,000.00
12,000,000. OC
-459,345,107. 59'
3,303,389,546.17
Reconstruction Finance Corporation
3,762,734,653.76
(Capital stock and notes, less funds expended for subscriptions to capital
stock of other governmental corporations and funds disbursed to other
governmental agencies for making
loans included below.)
Series " H " bonds of Home Owners'
+25,000,000.00i
Loan Corporation
-.- . .
25,000,000.00
Capital stock of Home Owners' Loan
1 200,000,000.00
Corporation
1 200,000,000. 00
Capital stock of regional agricultural
—10,000,000.00'
15,000,000. 00
25,000,000.00
Capital stock of Federal home loan
' H-21,172,000.00120, 514,000.00
banks
99,342,000.00
Capital stock of Federal Farm Mort200,000,000.00
200,000,000.00
Capital stock of Export-Import Bank of
-f 3,000,000.0021,000,000. 00
Washington
_
-•
18.000,000. 00
-M5,000,000.00
Capital stock of RFC Mortgage Co
1
25,000,000. 00
10,000,000.00
Capital stock of Disaster Loan Corpora6,000,000. 00
+6,000,000. Ott
tion
_ - -Capital stock of production credit cor120,000,000.00
120,000,000.00
Capital stock of Commodity Credit
100,000,000.00
100,000,000.00
Capital stock of Electric Home and
850,000.00
850,000.00
Capital stock of Federal Deposit Insur150,000,000.00
150,000,000.00
Capital stock (preferred and full-paid
income shares) of Federal savings and
-1,039,300.00
48,183,700.00
49,223,000.00
Capital stock of Federal Subsistence
10,000.00
10,000.00
Capital stock and paid-in surplus of
+31,350,926.40
230,874,287.38
262, 225,213. 78
Federal land banks
..
Capital stock and paid-in surplus of
100,000,000.00
100,000,000.00
Capital stock of Central Bank for Co-16,000,000.00
50,000,000.00
66,000,000.00
operatives
+11,000,000.00
90,000,000.00
79,000,000.00
Capital stock of banks for cooperativesOther obligations and securities:
-360,000.00
Railroad obligations
30,590,232.55
30,230,232.55
Obligations acquired by Federal Emergency Administration of Public
-18,460,848.80
Works
146,949,557.39
128,488,708.59
Notes received by Farm Credit Administration evidencing outstanding advances made from the revolving fund
created by the Agricultural Marketing
-1,218,903.4ft
112,605,799.81
111, 386,896.35
Act
383,000. 00
-383,000. OO
Securities received by Secretary of War
-241,426.55
Securities received by Secretary of Navy.
5,026,142. 24
4,784,715.69
Securities received by U. S. Maritime
Commission (formerly U . S . Shipping
—11,712,541.01
105,183,152.88
93,470,611.87
Board)
Obligations of farmers for seed, feed,
drought relief, and crop-production
+12,907,976.70
189,141,393.81
loans
. .
176, 233,417.11
-155,689.83
272, 686. 79
116,996.96
Obligations of joint stock land banks
Securities received by Resettlement Ad127, 668, 516. 45
+48, 663, 286.62:
79, 005, 229. 83
ministration
Securities received by Rural Electrifica+11,041,574.55823, 262. 31
11,864,836.86
tion Administration _ .
Securities received by Puerto Rico Re+3,700,593.21
3,700,593.21
construction Administration
Securities received by Secretary of In+534,468. 48
534, 468. 48
terior, loans to Indians
-379, 643,000.83
Total
17, 985, 665, 696. 401 17,606,022, 695. 57 1
1 Includes $100,000,000 expended for subscription to capital stock of Federal Savings & Loan Insurance
Corporation.
REPORT OF T H E SECRETARY OF T H E TREASURY
67
Contingent liabilities of the United States
A summary statement of the contingent liabilities of the United
States as of June 30, 1936 and 1937, and the change between the two
dates is shown below. A detailed statement of such liabilities as of
June 30, 1937, and a description of them appear as table 39 on page 443.
Total amount of contingent liability
Obligation
Agency
June 30, 1936
Federal Farm Mortgage
Corporation.
Federal Housing Administration.
Home Owners' Loan
Corporation.
Reconstruction Finance
Corporation.
Postal Savings System...
Federal Reserve System..
June 30, 1937
Bonds, various issues— $1,431,137,489. 50 $1,431,256,530.17
Debentures, various issues.
Bonds, various issues.... 3, 065,885,426.82
Notes, various issues
252,602,042.03
Funds due depositors
1, 260,787,703.92
Federal Reserve n o t e s . . . 4, 021,532,607.00
Increase (+) or
decrease (—)
+119,040.67
91,212. 72
+91,212.72
3.007,049,722.33
-58,835,704.49
256,191,418.26
+3,589,376.23
1,299,758,852.95 +38,971,149.03
4,196,006,553.25 +174,473,946.26
Federal savings and loan associations
The Federal Home Loan Bank Board was authorized under the
Home Owners^ Loan Act of 1933, approved June 13, 1933, as amended,
to provide for the organization, incorporation, examination, operation,
and regulation of Federal savings and loan associations, and to issue
charters therefor, in order to provide local mutual thrift institutions
in which people might invest their funds and in order to provide for
the financing of homes. The Secretary of the Treasury was authorized
on behalf of the United States to subscribe for preferred and full-paid
income shares in such associations, upon req[uest of the Board.
An appropriation of $50,000,000 to enable the Secretary of the
Treasury to purchase preferred shares in Federal savings and loan
associations was provided by the Fourth Deficiency Appropriation
Act, fiscal year 1933, approved June 16, 1933. This appropriation was
extended by the act approved April 27, 1934, to cover the purchase of
full-paid income shares. Subsequently, $700,000 of the appropriation
was allocated to the Federal Home Loan Bank Board. The amount
available to the Secretary of the Treasury for subscription to shares in
Federal savings and loan associations was $49,300,000.
The Home Owners' Loan Corporation also was authorized to purchase full-paid income shares of Federal savings and loan associations
after the funds available to the Secretary of the Treasury for the
purchase of such shares had been exhausted. The funds available to
the Secretary of the Treasury were exhausted on October 25, 1935.
During the fiscal year 1937, the sum of $1,039,300 was received on
account of shares repaid, making the total shares repaid to June 30,
1937, $1,116,300.
The following statement shows a summary of the transactions
in connection with the subscriptions by the Secretary of the Treasury to
preferred and full-paid income shares in these associations:
Q8
REPORT OF T H E SECRETARY OF T H E TREASURY
Preferred and full-paid income shares of Federal savings and loan associations
subscribed by the Secretary of the Treasury to June 30, 1937, and dividends received
[Par value of shares]
Total shares subscribed and paid _
Shares held on June 30,1936.
Less shares repaid during fiscal year 1937..
Shares held on June 30,1937___
Preferred
shares
Full-paid income shares
$637,800
$48, 662, 200
$49, 300,000.00
625,300
584,800
1, 597, 700
454, 500
49, 223, 000.00
1, 039, 300.00
40, 500
Dividends received on preferred and full-paid income shares:
To June 30,1936
_
Fiscal year 1937
To June 30, 1937,
48,143, 200
Total
48,183, 700.00
1, 223,034.95
1, 790, 202.95
3,013,237.90
Federal home loan banks
Twelve Federal home loan banks were established pursuant to the
Federal Home Loan Bank Act, approved July 22, 1932. These
banks are supervised by the Federal Home Loan Bank Board. The
act provided that the Board, with the approval of the Secretary of
the Treasury, shall determine the minimum capital of each bank,
which shaU be not less than $5,000,000. I t further provided that
the Secretary of the Treasury shall subscribe, on behalf of the United
States, for such part of the minimum capital of each Federal home
loan bank as is not subscribed for by members within 30 days after
books had been opened for stock subscriptions. Payments for stock
:subscriptions by the Secretary of the Treasury are subject to call in
whole or in part by the Board, with the approval of the Secretary of
the Treasury, at such time or times as may be deemed advisable.
To enable the Secretary of the Treasury to make payments upon
stock of Federal home loan banks subscribed for by him, the sum of
$125,000,000, or so much thereof as may be necessary for such purpose,
was allocatecl and made available to the Secretary of the Treasury
out of the capital of the Reconstruction Finance Corporation and
the proceeds of notes, debentures, bonds, and other obligations issued
by the corporation.
The Federal Home Loan Bank Board made calls for payments on
account of subscriptions aggregating $21,172,000 during the fiscal
year. The dividends received during the year aggregated
$1,693,096.99.
The following statement shows a summary of the transactions in
^connection with the subscriptions by the Secretary of the Treasury
t o stock of Federal home loan banks:
REPORT OF THE SECRETARY OF'THE TREASURY
69
Subscriptions by the Secretary of the Treasury to stock of the Federal home loanbanhs
to June SO, 1937, and dividends' received thereon
[Par value of shares]
held
Total shares Shares
June 30,
subscribed 1936
Federal home loan bank
Boston..
New York
Pittsburgh
Winston-Salem
Cincinnati
Indianapolis. _ChicagoDes Moines
Little Rock
Topeka
Portland
Los Angeles
$12,467,500
18,963,200
11,146, 300
9. 208, 200
12, 775, 700
• Total
F e d e r a l h o m e loan b a n k
Shares paid
fiscal year
1937
Shares held
June 30,
1937
6, 577,400
14,173,900
. 7,394,900
8, 772,400
7, 333, 60O
5,960,000
9,967, 900
300,000
500,000
600,000
500,000
775, 700
000,000
173,900
500,000
772,400
300,000
660,000
260, 000
2,033, 600
300,000
- 4, 707, 900
$11, 450, OOO
16, 000, OOO
10, 900,000
9, 208, 20O
12, 775, 70O
6, 577,400
14, 173,900
7, 394,900'
8, 772,400
7, 333,600
5, 960, OOO
9, 967,900
124,741,000
99,342,000
21,172,000
120,514, OOO
Dividends
received to
J u n e 30,1936
$6,150,000
3, 500,000
1, 300, 000
1, 708, 200
577,400
"894,'95o'
Dividends
Dividends
received fis-. received to
cal year 1937 J u n e 30,1937
Pittsburgh
Winston-Salem
Cincinnati
Indianapolis. _Chicago
Des Moines
Little Rock
Topeka...
Portland
Los Angeles
$208, 387. 72
520, 284.94
417,578.10
306,142.46
670,257.85
285, 795.14
530,405.48
207, 587. 67
289, 212.33
108, 526.04
117,623.13
94, 353.43
$86,846.32
263, 920. 76
195, 786.88
113,635.25
254,463.94
91,869.45
280,847.97
131,043.71
86, 644. 23
58, 218.56
70,517.75
59,302.17
$295, 234.04
784, 205. 70
613, 364.98.
419, 777.71
924, 721.79
377, 664. •59811, 253.45
338, 631.38
375, 856. 56166, 744.60
188, 140.88^
153, 655. 60
Total....
3,756,154.29
1,693,096.99
5,449,251.28.
Boston
N e w York
Federal land banks
Capital stock.—The 12 Federal land banks were established under
the Federal Farm Loan Act approved July 17, 1916. The Farm
Credit Administration exercises general supervisory authority over
these banks.
Under the act of January 23, 1932, amending the Federal Farm
Loan Act, as amended, it is the duty of the Secretary of the Treasury
on behalf of the United States, upon the request of the board of directors of any Federal land bank made with the approval of the Farm
Credit Administration, to subscribe from time to time for capital
stock of such bank. The act further provided that such stock may
at any time, in the discretion of the directors and with the approval
of the Farm Credit Administration, be paid off at par and retired in
whole or in part and that the Farm Credit Administration may at any
time require such stock to be paid off at par and retired in whole or in
part if in its opinion the bank has resources available for such purpose.
The proceeds of all repayments on account of stock subscribed for by
the Secretary of the Treasury were authorized to be held in the
Treasury and shall be available for the purpose of paying for other
stock thereafter issued pursuant to said act.
To enable the Secretary of the Treasury to pay for said stock,.
$125,000,000 was appropriated under the act approved February 2,.
70
REPORT OF THE SECRETARY OF THE TREASURY
1932. The following statement shows a summary of the transactions
in connection with the subscriptions by the Secretary of the Treasury
to stock of Federal land banks:
Subscriptions by the Secretary of the Treasury to stock of Federal land banks to
June SO, 1937
[Par value of shares]
Shares h e l d
J u n e 30, 1936
Federal land b a n k
Springfield .
Baltimore
Columbia
Louisville
N e w Orleans
St. Louis.
St. Paul
Wichita
Houston
Berkeley
Omaha
Spokane
-.
. -
_
.
Total
_
$6,315,665
7,375,080
15,688,295
6,816,480
18,706,790
8,191,995
18, 254, 210
6,893,945
8,423,410
6, 256,135
6, 564,070
15,426, 555
123,912,630
Shares s u b scribed
fiscal y e a r
1937
Shares repaid fiscal
year 1937
Shares held
J u n e 30, 1937
.$3,500,000
$1,059,035
43,665
20,600
1,082,120
2,013,140
214,925
201,380
146,150
1,096, 570
1,067,120
360,335
42,845
$5,256, 630
7,331,415
15, 667, 695
5, 734, 360
16, 693, 650
7,977,070
21, 652,830
5, 747,795
7, 326,840
5,189,015
6, 203, 735
15, 383, 710
3, 500,000
7,347,885
120,064, 745
Subscriptions to paid-in surplus and payments on account of reduction
in interest rates on mortgages.—The Secretary of the Treasury is authorized, under certain conditions, to make payments to Federal land banks
equal to the amount by which interest payments on mortgages held
by such banks have been reduced pursuant to the Federal Farm Loan
Act, as amended, and is also.authorized to subscribe, under specified
conditions and in the manner prescribed by the aforesaid act, to the
paid-in surplus of each Federal land bank an amount equal to the
amount of all extensions and deferments of any obhgation that may
be or may become unpaid under the terms of any mortgage. A
description of the basis of these payments is given on page 70 of the
annual report for 1936.
A statement as of June 30, 1937, of the amounts appropriated for
subscriptions to the paid-in surplus of Federal land banks on account
of extensions and deferments referred to above, and payments to
Federal land banks for this purpose, follows:
Appropriations for subscriptions to the paid-in surplus of Federal land banks on
account of extensions and deferments, and payments for this purpose to June SO,
1937
I. Amounts appropriated:
To June 30, 1936
Treasury Department Appropriation Act, 1938, May 14, 1937
Total to June 30, 1937
$169,000,000.00
20,000,000.00
•_. 189,000,000.00
REPORT
OF T H E
SECRETARY
OF T H E
71
TREASURY
2. Payments to Federal land banks:
Amount paid to Amount paid Amount paid to
June 30,1936 fiscal year 1937 June 30,1937
Federal land bank
Springfield..
Baltimore
•Columbia
Louisville
.l^T6w Orleans
:St. Louis
;St. Paul
Vl^'ichita
Houston
"Berkeley
Omaha
Spokane
•.
$5,973, 895. 52
2,837, 259.68
4,451, 740.38
5,982, 310.12
12, 678,645.16
8, 515,723.88
12, 692,969. 25
9,056,987.46
6,854, 514.00
11,113, 900.80
14, 798,070.92
12,005, 640. 21
Total..
106,961,657.38
$2,339, 838.78
80, 275.76
2,220,646.68
2,411, 774.40
1,602, 311.78
2,342, 934.40
5, 684,716.12
3, 942,525. 34
2, 355,086.00
4,048, 447.04
6, 554,636.03
1, 615,619.07
35,198,811.40
$8,313, 734.30
2,917, 535.44
6, 672,387.06
8, 394,084. 52
14, 280,956.94
10,858, 658.28
18, 377,685.37
12,999, 512.80
9, 209,600.00
15,162, 347.84
21,352, 706.95
13, 621,259.28
142,160,468.78 $142,160,468.78
'3. Amount available for expenditure June 30,1937
46,839,531.22
A statement as of June 30, 1937, of the amounts appropriated on
^account of reduction in interest rates on mortgages and of payments
to Federal land banks for this purpose is as follows:
Appropriations on account of reduction in interest rates on mortgages, and payments
to Federal land banks for this purpose to June 30, 1937
.1. Amounts appropriated:
To June 30, 1936
First Deficiency Appropriation Act, 1937, Feb. 9, 1937
$82,950,000.00
6,000,000.00
Total to June 30, 1937..
2. Payments to Federal land banks:
88,950,000.00
Amount paid to Amount paid Amount paid to
June 30,1936 fiscal year 1937 June 30,1937
Federal land bank
Springfield
Baltimore
"Columbia .
Louis v^ille
NewOrleans
St. Louis
St. Paul
Wichita
Houston
Berkeley
Omaha ._
Spokane
_
.
, . . . _.
_
-
Total
$1,784,346. 57
2,391,982.83
2, 202,324.32
5,054, 386.37
3, 529,908.28
4,093,144.45 .
6,118, 774.13
3,897,619.00
5,806, 205. 66
2, 708,112.91
7, 527. 536.99
3,457,571.23
$1,185,703.94
1,409,748.86
1,342,027.41
3,346,859.74
1, 514,916.01
2,899,991.96
4,877,744.55
2,681,463.04
3. 765,481.64
1,975,761.94
5,847,449. 54
1,982,938. 54
$2,970,050.51
3,801,731.69
3, 544, 351.73
8,401, 246.11
5,044,824. 29
6,993,136.41
10, 996, 518. 68
6, 579,082.04
9, 571,687.30
4, 683,874.85
13,374,986. 53
5,440, 509. 77
48, 571,912.74
32,830,087.17
81,401,999.91 81,401,999.91
3. Amount available for expenditure June 30,1937
7,548,000.09
Advances to Federal Reserve banks for industrial loans^ etc.
These advances were authorized by the act approved June 19, 1934,
a,mending the Federal Keserve Act. The provisions of the act under
which these advances are made were described on page 73 of the
a,nnual report for 1936.
Advances made to the banks during the fiscal year 1937 amounted
to $875,000. Payments received by the Treasury during the year
aggregated $227,447.69.
The following statement is a summary of the transactions in connection with advances to Federal Reserve banks on account of
industrial loans, etc., pursuant to section 13 (b) of the Federal Reserve
Act, as amended:
72
REPORT OF T H E SECRETARY OF T H E TREASURY
Advances to the Federal Reserve banks for industrial loans and payments received by
the Treasury to June 30, 1937
Payments made to Federal Reserve banks
Federal Reserve bank
Maxiimum payments authorized
To June 30,
1936
Fiscal
year 1937
Atlanta
Boston
Chicago
Cleveland
Dallas
Kansas C i t y Minneapolis..
New York
Philadelphia..
Richmond
St. Louis
San Francisco
$5,272, 031. 55
10,230, 236.88
19,748, 516. 70
14,146,863. 66
4,359, 338.10
4,131, 276. 30
3, 509,467. 65
42, 529,210. 65
14, 620,883. 52
5,808, 291. 43
5, 093,112. 25
9,850, 328. 30
$756,934. 44
2,875, 115. 98
1,417,701.33
1,015,571. 33
1, 251,788. 08
1,145, 717. 73
1,007, 746.96
7,752, 044. 63
4,198, 400. 60
3,420, 662. 05
547, 832.83
1,156, 795. 01
$875,000
Total...
139, 299, 556.99
26,546,310.97
875,000
To June 30,
1937
Payments
received
by the
Treasury
to June 30,
1937
$756, 934. 44
2,875, 115.98
1, 417,701. 33
1,015, 571. 33
1,251, 788. 08
1,145, 717. 73
1,007, 746. 96
7,752, 044. 63
4,198, 400. 60
3,420, 662. 05
547, 832.83
2,031, 795. 01
$9,065. 91
83, 500. 00
45,990. 97
23,165. 39
48,463.81
10,958.70
33, 313. 54
77,990. 28
125,952. 02
66,714. 26
27,421, 310. 97
525,114. 8»
Accounting and disbursing of emergency relief funds
Under section I I (A) of Executive Order No. 7034, dated M a y 6^
1935, and Department Circular No. 543, approved by the President;
the Commissioner of Accounts and Deposits continued during the year
to maintaiu accounting and disbursing facilities for handling allocations
made by the President under the Emergency Rehef Appropriation
Acts. The provisions of section I I (A) of Executive Order No. 7034
were extended by Executive Orders Nos. 7396 and 7649, to apply to
funds appropriated in the Emergency Rehef Appropriation Acts of
1936 and 1937.
In addition to t h e 56 Treasury-State accounts ofl&ces and 55
Treasury-State disbursing ofiices, there were 62 branch accounts
offices and an equal number of branch disbursing ofiices during the
year. Through the cooperation of the Works Progress Administration,,
34 of these branch accounts ofiices and the same number of branch
disbursing offices were discontinued during the year, resulting in
substantial economies in administrative expenses without loss of
eflSiciency.
Except for certain changes made necessary to meet changing requirements of administrative agencies, the same general procedure adopted
by the Treasury for handling the accounting and disbursing work
under the 1935 act, which was described on page 74 of the annual
report for 1936, was contiuued during the fiscal year 1937 with respect
to operations under subsequent acts.
At the close of the fiscal year 1937, over 217,000 separate project
accounts were maintained on the books of the Treasury-State accounts
offices for over 70 different administrative agencies: Of these accounts,
over 97,300 were active. I n addition, there were maintained on
the books of the Treasury-State accounts offices over 487,000 individual accounts of Resettlement (now Farm Security) borrowers, of
which approximately 450,000 were active. I n connection with t h e
maintenance of such accounts, the Treasury-State accounts offices
also prepared the bills to borrowers for amounts due. Total advances
to such borrowers as of June 30, 1937, amounted to $150,641,116.63
of which $23,061,161.51 had been repaid to such date; interest collections amounted to $998,258.25.
73
REPORT OF THE SECRETARY OF T H E TREASURY
From the beginning of the program in 1935, accounts of disbursing
officers have been rendered to the General Accounting Office three
times every month, as of the 10th, 20th, and last day of each month.
During the fiscal year 1937, pursuant to the President's letter of
November 20, 1935, over 6,000 disbursing and collection accounts
(including branch office accounts) were administratively examined by
the central Treasury Accounts Office prior to their transmission to the
General Accounting Office for audit and settlement. During the
entire existence of the emergency Treasury accounts organization,
there has not been a siugle instance of delinquency in the rendition
of a disbursing officer's account; nor has it been necessary to request
the extension of time for the rendition of any account.
The practice iuaugurated at the beginning of the program of compiling complete financial reports every 10 days for the President,
administrative agencies, and others concerned, with respect to the
financial status of the funds provided in the Emergency Rehef Appropriation Acts of 1935, 1936, and 1937, was continued during the fiscal
year 1937. In addition to these 10-day reports, there were also
compiled seven detailed reports showing the status of the funds.
A cumulative summary of such reports is given below:
Cumulative summary of data contained in seven reports on the financial status of
funds provided in the Emergency Relief Appropriation Acts of 1936, 1936, and
1937
Appropriated
b y Congress
D a t e of r e p o r t
1.
2.
3.
4.
6.
•6.
7.
Dec.
Mar.
Mar.
June
Dec.
Mar.
June
31, 1935
10, 1936
31, 1936
30, 1936
31, 1936
31, 1937
30, 1937
Allocated b y
the President
Obligations
incurred
Disbursem e n t s (checks
issued)
Total unexpended
balances
$4, 300,000,000 $4, 236, 981. 642 $2, 340, 856, 001 $1, 672, 394, 306 $2, 627-, 605, 694
4, 434,000, 000 4,426,079,008 3, 282,083, 647 2, 301,156, 714 2," 132,843, 286
4, 576, 570,000 4, 608,412, 285 3,466,159,327
2, 515,082,158 2,061, 487,842
. . 4, 679, 473,143 4, 668,159, 883 4, 249,875,094 3,424, 564, 516 1, 254, 908, 627
6,121, 472, 550 6, 094, 290, 585 5, 670, 204, 883 4, 983, 215,447 1,138, 257,103
6, 921, 068.922 6, 721, 882, 755 6,179, 319, 789 5, 628,496,826 1,292,572,096
6,927,011,145 6, 914,991, 471 6, 721, 666, 937 6, 285,073,448
1 641, 937, 697
1 The unobligated balance on June 30, 1937, was $205,344,208.
The reports to the Congress were submitted within 9 days after the
close of the calendar year and contauied detailed information with
respect to the operations under the Emergency Relief Appropriation
acts classified according to act limitations, organization units. States
in which the work was done, types of work, and objects of expenditures.
A summary report of the status of the funds under the Emergency
Relief Appropriation Acts of 1935 and 1936, as of June 30, 1937, is
contained in table 19, page 388. Similar information as of the close of
each month is published in the daily Treasury statement for the 15th
of the month next following.
Appropriations authorized under the Social Security Act
.. The Social Security Act, approved August 14,1935, provided, among
other things, for the establishment of a system of Federal old-age benefits, and for grants-in-aid to the several States to enable them to make
more adequate provision for aged persons, blind persons, dependent
and crippled children, maternal and child welfare, public health, and
the administration of their unemployment compensation laws.
74
REPORT OF THE SECRETARY OF THE TREASURY
The amoulits appropriated to June 30, 1937, under the various
authorizations contained in the Social Security Act, except amounts,
appropriated for administrative expenses of the Federal Government,,
are shown in the following statement:
Amounts appropriated to June SO, 1937, under authorizations contained in theSocial Security Act, except amounts for administrative expenses
Appropriation
For grants to States:
Under Social Security Board:
For old-age assistance..
For unemployment compensation administration
For aid to dependent children
For aid to the blind
Under Department of Labor:
f'or maternal and child health services
For services for crippled children
...
For child welfare services
Under Treasury Department:
For public health work
..
.
Under Interior Department:
For vocational rehabilitation of persons disabled in
industry
Total grants to States .
. . . . .
Appropriated to June
30, 1936
Appropriated during
fiscal year
year 1937
$109,660,000
31,250,000
40,000,000
10,000,000
$150,000,000
19,000,000
54, 600,000
10,000,000
$259, 660,000»
50, 250,00094, 600,000
20,000,000'
190,910,000
233,600,000
424, 510,000-
4,400,000
3,337,000
1,825,000
3,700,000
2,800,000
1,475,000
8,100, OOO'
6,137, OOO^
3,300,000«
9, 562,000
7,975,000
17,537,000>
11, 333,000
8,000,000
19,333,000-
1 2, 261,000
214,066,000
Appropriations for other purposes:
Under Treasury Department:
For disease and sanitation investigations by Public
1 1, 695,000
Health Service...
3 265,000,000
For old-age reserve account
(2)
Appropria t e d to June30. 1937
2, 261,000
249, 575,000
463, 641,000
1, 600,000
500,000,000
3, 295,000765,000,000-
Total for other purposes
266,695,000
501, 600,000
768, 295,000-
Grand total
480,761,000
751,175,000
1,231,936,000"
1 Funds authorized to be appropriated under the Social Security Act augment existing appropriations forfiscal years 1936 and 1937. Figures used in this statement represent total amounts appropriated for such...
years.
2 Deparlment of Interior Annual Appropriation Act, fiscal year 1938, approved Aug. 9,1937.
3 See p . 49.
Obligations of foreign governments
The United States received during the year payments aggregating$590,586.50 on account of the indebtedness of foreign governments, of"
which $67,000 was for account of principal, $485,525.50 was for account of interest, and $38,061 was for account of annuities under themoratorium agreements. The Government of Finland, in accordance
with the provisions of its funding agreement of May 1, 1923, made
payment of $67,000 for account of principal and $289,397.50 for account of interest, the semiannual interest due on June 15, 1937,
having been paid in part with $142,000 face amount of 2 ^ percentTreasury bonds of 1949-53, which were accepted at par. Under the.
moratorium agreement the Government of Finland paid annuities.
of $38,061. ^
The following statement shows the payments due duriug the period..
July 1 to December 31,1936, and the amounts actually paid on account,
by certain governments:
75
KEPORT OF T H E SECRETARY OF T H E TREASURY
AMOUNTS DUE AND PAYABLE, JULY 1 TO D E C E M B E R 31, 1936
F u n d i n g agreements
Moratorium
agreements
Country
Principal
Belgium
Czechoslovakia
Estonia
FinlandFrance
Great Britain
Greece.Hungary
Italy
Latvia.. _
L i t h u a n i a . ._
Poland
Rumania „ .
$4,158,000.00
_
__
_. -
1,520,000.00
286, 265.00
145, 285.00
19,261,432. 50
75, 950,000.00
217,920.00
33,185.08
1, 245, 437. 50
119,609.00
107, 783. 67
3,582,810.00
$484,453.88
182,812. 78
36,585.29
19,030. 50
3,046,879.72
9, 720,765.05
67,137.38
4, 225. 58
896,155.88
15, 274. 26
13, 683. 26
456, 229. 71
48, 750.08
$4,642,453. 88
1, 682,8i2. 78
448,850. 29
231, 315. 50
22,308, 312. 22
117, 670, 765.05
701, 057.38
51, 230. 66
2,141, 593.38
187, 383. 26
121,466.93
5, 559,039. 71
48, 750.08
35,695,320.00
105.107, 727. 75
14,991,983.37
155, 795,031.12
$1,500,000.00
, 126,000.00
67,000.00
-_ .
_
__
.
32,000,000.00
416,000.00
13,820.00
52, 500.00
_
-.
._ '
Total
Total
Interest
AMOUNTS ACTUALLY PAID
FinlandGreece
.
.
Total..
$67,000.00
$145, 285.00
1 196,128.00
$19,030. 50
$231,315. 50
196,128.00
67,000.00
341,413.00
19,030. 50
427,443.50
» Represents payment of additional 5 percent of interest due on May 10, 1935, and Nov. 10, 1935, and
40 percent of interest due May 10,1936, which was received on Oct. 21,1936, and payment of 40 percent of
interest due on Nov. 10,1936, which was received oa Nov. 6,1936.
The following statement shows payments due during the period
January 1 to June 30, 1937, and the amounts actually paid on account:
AMOUNTS DUE AND PAYABLE. JANUARY 1 TO JUNE 30, 1937
F u n d i n g agreements
Moratorium
agreements
Country
Principal
Austria. _
Belgium Czechoslovakia. _
Estonia
Finland
France
Great Britain
Greece
Hungary
..
Italy
Latvia
Lithuania
Poland
Rumania. _
Yugoslavia
.
_
$460,093.00
4,600,000.00
1,600,000.00
63,004,207.80
421,000.00
_
14,200,000.00
46,065.00
.
Total
$4,158,000.00
286, 265.00
144,112. 50
19, 261,432. 50
75,950,000.00
217,920.00
33,185.08
1,245,437.50
119,609.00
107,783.67
3,582,810.00
1,800,000.00
375,000.00
86,406,365.80
Total
Interest
105,106,555. 25
$34,767.23
484, 453.88
182,812.78
36,585. 29
19,030. 50
3,046,879.72
9,720,765.05
67,137.38
4, 225. 58
896,155.88
15, 274. 26
13,683. 26
456, 229. 71
48,750.08
$494,860. 23
9, 242,453 88
1, 682, 812. 78
322,850 29
163,143. 00
85,312,520.02
85,670,765. 05
706,057.38
37,410. 66
16,341, 593.38
134,883. 26
167, 531. 93
4,039,039. 71
1, 848, 750. 08
375,000.00
15,026,750. 60
206, 539,671.65
$19,030. 50
$163,143.00
AMOUNTS ACTUALLY PAID
Finland-
$144,112.50
Press releases of the Treasury Department and correspondence
exchanged between the Government of the United States and various
foreign governments regarding the amounts due during the fiscal
year wiU be found as exhibit 41 on page 271 of this report.
76
REPORT OF THE SECRETARY OF T H E TREASURY
A statement showing the principal of the funded and unfunded
indebtedness of foreign governments to the United States, the accrued
and unpaid interest thereon, and payments on account of principal
and interest as of November 15, 1937, appears as table 52 on page 470.
The total amounts previously due from foreign governments on account of their indebtedness to the United States under the funding
and moratorium agreements and not paid as of November 15, 1937,
according to contract terms, are shown in the following statement:
TOTAL AMOUNTS DUE AND NOT PAID. AS OF N O V E M B E R 15, 1937
Funding agreements
Moratorium
agreements
Country
Principal
Austria
Belgium
Czechoslovakia.
Estonia
France
Great Britain. .
Greece
Hungary i
Italy
Latvia
Lithuania
Poland
Rumania
Yugoslavia
Total
$920, 186.00
21,900, 000.00
13,170, 085.83
592, 000.00
215, 711,488.23
128.000, 000.00
4, 370,000.00
65, 000.00
65,600, 000.00
236, 000.00
215, 425.00
7,207, 000.00
7,000, 000.00
1,875, 000.00
466,862,185.06
Total
Interest
$30,882, 000.00
2,821, 755. 00
192, 614.325.00
666,049, 481. 58
1,754, 659.50
317, 628. 61
916.74
1,060,950.84
906, 869. 68
35, 316, 270.00
940,932,856.95
534.46
. 3,875,631.04
1,462, 502.24
292, 682. 32
24, 375,037.76
77, 766,120.40
604. 236.42
33, 804; 64
7,169, 247.04
122, 194.08
109, 466.08
3, 649,837.68
390, 000.64
720.46
66, 657,631.04
14, 632,588.07
3, 706,437. 32
432,700, 850.99
871,815, 601.98
6, 728,895.92
416, 433. 25
81, 978.163.78
1,419, 144.92
1, 231,760. 76
46,173, 107. 68
7, 390,000. 64
1,875,000.00
119,920, 294.80
1,527,715,336.81
1 The Hungarian Government has deposited with the foreign creditors' account at the Hungarian National Bank the aggregate amount of 1,641,846.36 pengo. The debt-funding and moratorium agreements
with Hungary provide for payment in dollars in the United States.
The payments due from the Government of Austria on January 1,
1933, January 1, 1934, and January 1, 1935, aggregating $1,207,742,
under the funding agreement of M a y 8, 1930, and $69,534.46 under
the moratorium agreement of September 14, 1932, were postponed in
accordance with the provisions of those agreements that ^'the obligation of Austria to pay annuities during the years 1929 to 1943 will in
the case of each annuity not arise if the trustees of the Reconstruction
Loan of 1923, prior to the preceding December 1st, have raised objections to the payment of the annuity on the due date.'' The agreements also provide that any payment so postponed, together with
interest at 5 percent per annum compounded annually to December
31, 1943, shall be repaid, together with further interest at 5 percent
per annum, by 25 equal annuities on January 1 of each of the years
1944 to 1968, and require such annuities to be evidenced by bonds of
Austria.
During the fiscal year 1937 there were received from the Austrian
Government bonds aggregating $3,489,482.75, evidencing the annuities payable by that Government annually from January 1, 1944, to
January 1, 1968. These bonds were formally accepted on July 23,
1937, iQ exchange for the bonds and annuities originally payable on
January 1, 1933, 1934, and 1935.
Receipts from Germany
During the fiscal year 1937 the United States received no payments
from the Government of Germany under the debt-funding agreement.
REPORT OF THE SECRETARY OF THE TREASURY
77
of June 23, 1930, covering the costs of the American Army of Occupation and the awards of the Mixed Claims Commission, United States
and Germany.
Army costs.—Payments of 9,300,000 reichsmarks were due on
September 30, 1936, and March 31, 1937, respectively, from the
Government of Germany on account of army costs under the provisions
of the debt agreement of June 23, 1930. Interest amountiag to
3,108,437.50 reichsmarks was also due on those dates. There has
been no change in the army cost account from that shown in the statement appearing on page 39 of the annual report of 1932.
Mixed claimSj United States and Germany.—Payments of 20,400,000
reichsmarks were due on September 30, 1936, and March 31, 1937,
respectively, from the Government of Germany on account of mixed
claims awards under the provisions of the debt agreement of June
23, 1930. Interest amounting to 10,710,000 reichsmarks was also
due on those dates.
Annuities under moratorium agreement.—The semiannual installments, aggregating 3,058,098.90 reichsmarks, of the annuities under
the moratorium agreement with the Government of Germany dated
May 26, 1932, which were due during the fiscal year 1937, were not
paid by Germany.
The status of the indebtedness of Germany to the United States
as of June 30, 1937, under the funding and moratorium agreements is
summarized in the following tables:
AMOUNT OF I N D E B T E D N E S S
Indebtedness
as funded
Total indebtedness as of June
30,1937^
Army costs (reichsmarks).....
Mixed claims (reichsmarks)
1,048,100,000
2,121,600,000
1,008, 224, 493. 69
2, 068, 050, 000. 00
Total (reichsmarks)
..
Total (in dollars, at 40.33 cents to the
reichsmark)
3,169, 700,000 2 3,076,274,493.69
Principal
Interest accrued and
unpaid»
997, 500,000 10,724,493.69
2, 040, 000,000 28,050,000.00
3,037, 600, 000 38, 774, 493. 69
1. 278,340, 010 1, 240, 661, 503. 31 .1,225,023,750
16, 637, 753. 31
PAYMENTS R E C E I V E D
Total payments received
as of June 30,
1937
Army costs (reichsmarks)...
Mixed claims (reichsmarks)
Total (reichsmarks).-.
Total (in dollars)
51, 456, 406. 25
87, 210,000.00
Payments of
principal
Payments of
interest
50,600,000.00
81, 600, 000.00
856,406.25
5, 610, 000.00
138, 666, 406. 25 132, 200, 000. 00
33, 587,809. 69 31,539,595.84
6, 466, 406. 25
2, 048, 213.85
1 Includes interest accrued under unpaid moratorium agreement annuities.
2 Includes 4,027,611.95 reichsmarks deposited by the German Government in the Konversionskasse fur
Deutsche Auslandsschulden and not paid to the United States in dollars as required by the debt and moratorium agreements.
16109—38
7
78
REPORT OF T H E SECRETARY OF T H E TREASURY
AMOUNTS NOT PAID ACCORDING TO CONTRACT T E R M S , JUNE 30, 1937
Funding agreement
Date due
Principal
Sept. 30, 1933
Mar. 31, 1934
Sept. 30, 1934
Mar. 31, 1935-.'
Sept. 30, 1935
Mar. 31, 1936
Sept. 30, 1936
Mar. 31, 1937
reichsmarks..
do....
do....
do....
do....
do....
do....
do....
Total.
_
do
Total (in dollars, at 40.33 cents to the reichsmark)...
_
Moratorium
agreement
Total
Interest
1, 629, 049. 45
1, 529, 049. 45
1, 529, 049. 45
1, 529, 049. 45
1, 629, 049. 45
1, 629. 049. 45
1,529,049.46
1, 629, 049.45
I 4, 027, 611.95
.123, 929, 049. 45
26, 784, 736. 96
88,963, 299. 45
36, 441,861. 95
37,120. 424. 45
37, 798,986. 95
38, 477, 549. 45
344, 500, 000
35,811,125.00 12, 232, 395. 60
392, 543, 520. 60
138, 936, 850
14, 442, 626. 71 4, 933,325.16
158,312,801.86
122,400,000
20,400,000
82, 900, 000
29, 700, 000
29, 700, 000
29, 700, 000
29, 700, 000
2, 498,562.50
3,855, 687. 50
4, 534, 250. 00
6, 212, 812. 60
5, 891, 375. 00
6, 569, 937. 50
7, 248, 500. 00
1 Includes 4,027,611.95 reichsmarks deposited by the German Government in the Konversionskasse fur
Deutsche Auslandsschulden and not paid to the United States in dollars as required by the debt and moratorium agreements.
Treasury administration of alien and mixed claims
The Settlement of War Claims Act of 1928 authorized the Secretary of the Treasury to make payments on account of (1) awards of
the Mixed Claims Commission, United States and Germany, for
claims of American nationals against the Government of Germany;
(2) awards of the War Claims Arbiter for claims of German, Austrian,
and Hungarian nationals against the Government of the United
States; and (3) awards of the Tripartite Claims Commission for
claims of American nationals against the Governments of Austria
and Hungary.
The time within which claimants could file applications for payment of awards from the Mixed Claims Commission, United States
and Germany, and the Tripartite Claims Commission, United States,
Austria, and Hungary, has been extended from time to time, and was
further extended until March 10, 1938, under the joint resolution of
Congress approved June 26, 1936, a copy of which will be found as
exhibit 55 on page 307 of the annual report for 1936.
Executive Order No. 6981, dated March 2, 1935 (a copy of which
will be found as exhibit 53 on page 288 of the annual report for 1935),
under which the restrictions imposed by Public Resolution No. 53
of June 27, 1934, as to payments, transfers, and deliveries of property
under the Trading with the Enemy Act, as amended, and the Settlement of War Claims Act of 1928, as amended, were removed in certain cases, was amended by Executive Order No. 7111, dated July
22, 1935 (a copy of which will be found as exhibit 54 on page 306 of
the annual report for 1936).
Mixed Claims Commission: Claims against Germany.—No payments
were made during the year on account of awards of the Mixed Claims
Commission.
The following summary shows the awards certified to the Treasury
by the Secretary of State, by classes, number, and amount of the
awards, the amount paid on account, and the balance due thereon as
of September 30, 1937:
Number and amount of awards of the Mixed Claims Commission, United States and Germany, certified to the Secretary of the Treasury by the
Secretary of State, and the amount paid and balance due, by classes, as of Sept. 30,. 1937
Class I
A w a r d s certified
Total
number of
awards
Total amount
Number of
awards
A w a r d s on
account of
death and
personal i n jury
Class I I I
Class I I
Number of
awards
other awards N u m of $100,000 a n d ber of
awards
less
Other awards
over $100,000
U n i t e d States G o v ernment
Number of
awards
Amount
C
O
1. A m o u n t d u e on a c c o u n t :
P r i n c i p a l of a w a r d s :
A g r e e m e n t of A u g . 10, 1922
A g r e e m e n t of D e c . 31, 1928
Less a m o u n t s p a i d b y Alien P r o p e r t y C u s t o d i a n
a n d others
...
I n t e r e s t t o J a n . 1,1928, a t rates specified in a w a r d s :
A g r e e m e n t of A u g . 10, 1922
A g r e e m e n t of D e c . 31, 1928
•
T o t a l p a y a b l e t o J a n . 1, 1928
..
I n t e r e s t thereon t o d a t e of p a y m e n t or, if u n p a i d
Sept. 30,1937, a t 6 percent per a n n u m as specified
i n t h e S e t t l e m e n t of W a r C l a i m s A c t of 1928
T o t a l d u e claimants^
2. P a y m e n t s m a d e on account u p t o Sept. 30, 1937:
P r i n c i p a l of a w a r d s :
A g r e e m e n t of A u g . 10, 1922
A g r e e m e n t of D e c . 31, 1928
I n t e r e s t t o J a n . 1,1928, a t r a t e s specified in a w a r d s :
A g r e e m e n t of A u g . 10, 1922
A g r e e m e n t of D e c . 31,1928
H
• 4, 551 $166, 686,146. 09
3,695,863.20
2,290
420 $3,489,437. 76
115
566, 625. 00
160,381, 008. 29
4, 046, 062. 75
3,829
2,169
187, 226.85
$15,102,156. 76
2,447,803.92
$96, 058, 757.17
691,434.28
4 $42, 034, 794 41
17, 549, 959. 68
96, 750,191.45
42, 034, 794.41
48, 012. 60
139, 214.35
298
6
w
Q
160,193, 781.44
4, 046,062. 75
17, 501, 947.18
96, 610, 977.10
42, 034, 794. 41
69, 755, 018. 74
1,409, 240.88
732,801. 61
115,976.22
6,861, 202.19
971,169.16
42, 961, 689. 72
322,105. 51
19, 209, 326. 22
231, 358, 041. 06
4,894,840. 58
26, 324,308. 62
139,894, 772.33
61, 244,119. 63
57, 217, 590. 04
188,801. 74
1,373, 294.44
25,813, 667. 35
29,841, 826. 51
288,575,631.10
5, 083. 642. 32
26, 697, 602. 96
166, 708,439. 68
91, 086, 946.14
16, 028, 952.94
2,445,886.69
1103, 221,804.53
789, 280.11
6,841,256.56
970,384.79
(2)
(2)
O
^^
4,236 1121, 740,196. 22
2,263
3, 791, 791.80
7, 574, 068.17
1,086,361.01
420
115
3,489, 437. 75
556, 625. 00
732,801. 61
115, 976. 22
3,816
2,148
d
w•
1 Includes payments on account of interest to Jan. 1, 1928, on class I I I awards. Payments on-this class of awards are first applied on account of the total amount payable as of
Jan. 1, 1928, as directed by the Settlement of War Claims Act of 1928, until total of all payments on the three classes equals 80 percent of the amount payable Jan. 1,1928. Payment
of accrued interest since Jan. 1, 1928, on this class of claims deferred in accordance with act.
2 See note 1.
•
CO
Number and amount of awards of the Mixed Claims Commission, United States and Germany, certified to the Secretary of the Treasury by the
Secretary of State, and the amount paid and balance due, by classes, as of Sept. 30, 1937—Continued
Awards certified
Total
number of Total amount
awards
Number of
awards
Class III
Class II
Class I
Awards on
Num- Other awards Numaccount of
ber of of $100,000 and ber of
death and
less
awards
personal in- awards
jury
00
O
United States Government
Other awards Number of
over $100,000 awards
Amount
O
o
^^
2. Payments made on account up to Sept. 30, 1937—Con.
Interest at 6 percent per annimi from Jan. 1,1928, to
date of payment as directed by the Settlement of
War Claims Act of 1928
H
Total payment to Sept. 30, 1937
Less one-half of I percent deduction from each payment:
Agreement of Aug 10, 1922
Agreement of Dec. 31, 1928
•-.
- .
Net payments made to claimants up to
Sept. 30, 1937
3. Balance due on account:
Principal of awards:
Agreement of Aug. 10,1922
Agreement of Dec. 31, 1928
Interest to Jan. 1,1928, at rates specified in awards:
Agreement of Aug 10,1922
Agreement of Dec. 31, 1928
Accrued interest at 5 percent per annum from Jan. 1,
1928, on total amount payable as of Jan. 1,1928, to
Sept 30 1937
Balance due claimants as of Sept 30, 1937
$1,543, 664.32
$188,801.74
$1,354,862.58
(2)
135,736,070.52
6,083, 642.32
26, 641,343.66
$104, Oil, 084.64
3 661,809.90
< 26,871.04
21, 650. 20
3,767.97
114,050.28
19,166.68
516,109.42
3,946.39
136,057,389. 58
5,058, 224.15
26, 608,136. 60
103,491,028.83
w
w
o
Kl
O
315
27
96,928, 737.96
226,176. 91
13
21
26,190.32
1,917.23
298
6
35,659,428. 01
224, 259. 68
4 $61, 244,119. 63
9, 945. 63
774.36
9,945.63
774.36
55,673, 925.72
18,431.86
25,813, 667.35
29,841,826. 51
152,839, 660.58
56,259.40
61,697, 355. 04
91, 085,946.14
H
2 See note 1.
^ Of this amount $060,025.54 has been covered into the Treasury as miscellaneous receipts. A further sum of $1,784.36 will be covered into the Treasury at a later date.
* Of this amount $24,150.09 has been paid to the Government of Germany. A further sum of $2,720.95 is payable in connection with the adjudication of late claims under the agreement of Dec. 31, 1928.
>
IP
Kl
REPORT OF THE SECRETARY OF THE TREASURY
81
War Claims Arbiter,—Under the Settlement of War Claims Act of
1928, it was the duty of the War Claims Arbiter, within certain limitations, to hear the claims of German, Austrian, and Hungarian nationals
and to determine the fair compensation to be paid by the United States
for ships seized, patents sold or used by the United States, and a radio
station sold to the United States.
War Claims Arbiter: Claims of German nationals,—The Treasury
completed up to June 30, 1935, payment of 50 percent of the amount
of all awards made by the War Claims Arbiter in favor of German
nationals as required by paragraph 7 of section 4 (c) of the Settlement
of War Claims Act of 1928. No payments were made on these awards
during the fiscal year 1937.
The following summary shows the number and amount of awards in
favor of German nationals certified to the Treasury for payment, the
payments made on account, and the balance due thereon as of September 30, 1937:
Awards of the War Claims Arbiter on account of claims of German nationals for ships,
patents, and radio station, amount paid, and balance due on each, as of Sept,
30, 1937
Total amou;Qt
(315 awards)
1. Amount due on account:
Principal of awards, including interest to Jan. 1,
1929
Interest at 5 percent per annum from Jan. 1,1929,
on total amount payable as of Jan. 1, 1929, or
on the principal amount remaining unpaid to
Sept. 30, 1937 Total due claimants
2. Payments made on account to Sept. 30,1937:
Principal of awards
-__
Interest at 5 percent per annum from Jan. 1,1929,
on total amount payable as of Jan. 1, 1929, or
on the principal amount remaining unpaid to
Sept. 30, 1937
Total payments to Sept. 30,1937
3. Balance due on account:
Principal of awards..
Interest accrued at 5 percent per annum from Jan.
1, 1929, on total, amount, payable as of Jan. 1,
1929, or on the principal amount remaining
unpaid to Sept. 30, 1937.
Balance due claimants
Ships, amount
(27 awards)
$86,738,320.83 1 $74,252,933.00
Patents and
radio station,
amount (288
awards)
$12,485,387.83
23,668,039.87
20,102,793.78
3,555,246 09
110,396,360.70
94,355,726.78
16,040,633.92
43,368,899.24
37,126,205.21
6,242,694 03
43,368,899; 24
37,126,205.21
6,242,694.03
43,369,421.59
137,126,727.79
6,242,693.80
23,668,039.87
20,102,793.78
3,555,246.09
67,027,461.46
57,229, 521.57
9,797,939.89
1 Includes awards amounting to $622.58 to members of former ruling family of Germany (sec. 3 (j), Settlement of War Claims Act of 1928, as amended).
War Claims Arbiter: Claims of Hungarian nationals,—The awards
made by the Arbiter to Hungarian nationals in the sum of $39,125,
with interest at the rate of 5 percent per annum from July 2, 1921, to
December 31, 1928, amounting to $14,675, have been paid with the
exception of one award amounting to $137.51, together with interest
thereon at the rate of 5 percent per annum from December 31, 1928.
No payments were made during the year on these awards.
German special deposit account.—The following statement shows the
total amounts deposited in the German special deposit account, the
amounts paid therefrom up to September 30, 1937, and the balance
held in the account:
82
REPORT OF THE SECRETARY OF THE TREASURY
Funds deposited in the German special deposit account and payments made therefrom
up to Sept. 30, 1937
RECEIPTS
Prom investments by Alien Property Custodian under Trad. ing With the Enemy Act, as amended:
Unallocated interest fund....
$25,000,000.00
Less refunds
4,000,000.00
20 percent German property retained
21,000,000.00
17,552,096.91
From Germany:
2H percent of Dawes' annuities available for reparations
(ParisagreementofJan.l4,1925)
32,183,060.87
Under German-American debt agreement, June 23,1930. 19,469,964.00
Interest on payments postponed under terms of debt
agreement dated June 23,. 1930
1,743,738.70
Appropriation for ships, patents, and radio station
86,738,320.83
Expenses of administration, War Claims Arbiter, on account
of German nationals.
113,624.20
Earnings and profits on investments by the Secretary of the
Treasury
1
$38, 562,096.91
53, 396, 763. 57
6,851,945.03
4,764,957.12
Total receipts........
$183, 555, 762.63
PAYMENTS ON ACCOUNT
Awards of the Mixed Claims Commission:
Under agreement of Aug. 10, 1922...
Under agreement of Dec. 31, 1928.
Awards of War Claims Arbiter:
For ships
For patents and radio station
$129,710,006.62
6,347,383.96
• $135,057, 389. 58
37,126,205.21
6,242,694.03
One-half of 1 percent deducted from mixed claims payments, covered into Treasury
($1,784.36 withheld but not paid).
One-half of 1 percent deducted from mixed claims payments on account of awards entered
under agreement of Dec. 31, 1928 (act of June 21, 1930), and paid to Germany ($2,720.95
withheld but not paid)
...^
Advances to special fund, expenses of administration of the Settlement of War Claims Act
of 1928 (office of the Secretary of the Treasury)
Expenses of administration. War Claims Arbiter, on account of German nationals
Total payments
Balance in German Special Deposit Account (including investments)
Made up as follows:
Principal cost
$3,847,000 face amount 3 percent Treasury bonds of 1951-55.. $3,828,053.51
$110,000 face amount 2 percent Treasiiry notes, series'B-194i2..
110,000.00
Cash balance
43,368,899. 24
650,025.54
24,150.09
43,175.00
113,624.20
179,257,263.65
4,298,498.98
3,938,053.51
360,445.47
4,298,498.98
Tripartite Claims Commission: Claims against Austria.—The total
amount of awards, including interest, certified by the Tripartite Claims
Commission to the Treasury for payment was $370,032.14. All of
these awards against Austria have been paid, except one in the amount
of $135.06. Sufficient funds have been retained in the Austrian special
deposit account to pay this award. No payments were made on
these awards during the fiscal year 1937.
. Tripartite Claims Commission: Claims against Hungary.—The
awards entered by the Tripartite Claims Commission against Hungary,
in favor of American nationals, amounted to $199,975.57. During
the fiscal year 1937 the Treasury made payments to American
nationals on account of such awards amounting to $215.18. As. of
June 30, 1937, awards aggregating $7,257.35 had not been paid because
claimants had not filed applications as required by law.
83
REPORT OF TPIE SECRETARY OF THE TREASURY
Railroad obligations
Total receipts during the fiscal year on account of railroad securities
owned by the United States, which were acquired under the Federal
Control Act, as amended, and the Transportation Act, 1920, as
amended, amounted to $424,897.66, classified as follows:
Collections by Treasury Department:
' • Sec. 210......I"....
•_....:.
Sec. 207 ._
_
Principal
Interest
$147,600.00
201,830.54
$71,480.30
$218,980.30
201,830. 54
349,330. 54
71,480.30
4,086.82
420,810.84
4,086. 82
349.330. 64
75, 567.12
424,897. 66
Total
Collections by Director General..
Grand total
Total
The following statement shows the total amount of railroad obligations, by classes, originally held by the United States Government
(exclusive of certain miscellaneous obligations held by the Director
General of Railroads), the amount held on June 30, 1937, and payments received on account:
Principal
amount originally held
Federal Control Act:
Equipment trust notes
Sec. 7 . . . . .
Sec. 12
Transportation Act:
Sec. 207
Sec. 210
Total...
$346, 556,750.00
98,401,756.00
62,103,453.28
282,712,837.36
290,800, 667. 00
1,080, 575,462. 64
Principal
amount held
on June 30,
1937
Total payments received
Interest
Principal
$346, 556, 750.00
98,401,755.00
62,103,453. 28
$45, 338,918. 26
23,100, 562. 27
4,248,171.96
$5,007,000.00 1277,695,167.90
25, 223, 232. 65
265,577,434.45
30, 230, 232. 55 1,060,334, 560. 63
54,360,339.70
90,727,995.07
217, 775,987. 25
1 stock of the Kansas, Oklahoma & Gulf Ry. Co., in the face amount of $212,500, was sold on the market
for $201,830.54, resulting in a difference of $10,669.46 between the receipts: and the principal originally held.
Section 204-—There have been no transactions under section 204
of the Transportation. Act, as amended, since June 30, 1931. Total
payments under this section amounted to $10,967,801.80.
Section 207.—The, following statement shows the amount of obligations of carriers acquired under section 207 of the Transportation Act,
as amended, and held on June 30, 1937:
Obligations acquired under the provisions of section 207 of the Transportation Act,
1920, and held as of June 30, 1937
Name of carrier
Principal
amount of
promissory note Collateral,
face
or of diamount
rectly
held
. security
Chicago, Milwaukee, St. $3,207,000
(0
Paul & Pacific R. R. Co.
Minneapolis & St. Louis 1,250,000 $1, 500,000
R. R. Co.
Washington, Brandywine &
Point Lookout R. R. Co.
Waterloo, Cedar Falls &
Northern Ry. Co.
Total
1 Securities directly held.
50,000
75,000
500,000
626,000
6,007,000
Class of collateral or of
directly held security
Principal
in default
Interest in
default
6 percent noncumulative
preferred stock of carrier.
Refunding and extension $1,250,000 $1,060,000.00
mortgage, 6 percent
bonds of carrier.
First mortgage, 6 percent
16,408.98
50,000
bonds of carrier.
Temporary general mort500,000
484,931. 50
gage, 7 percent bonds of
carrier.
1,800,000 1,651,340.48
84
REPORT OF T H E SECRETARY OF T H E TREASURY
Sections 209 and 212,—There have been no transactions under
sections 209 and 212 of the Transportation Act, as amended, during
the fiscal year. Total payments to carriers under these sections
amounted to $532,028,045.55 to June 30, 1937.
Section 210.—This section of the Transportation Act, as amended,
established a revolving fund of $300,000,000 to be used for loans to
railroads under the conditions set forth in a certificate of the Interstate Commerce Commission authorizing each loan, and also for
paying judgments, decrees, and awards rendered against the Director
General of Railroads. No new loans are being made as the time for
making application has expired. No expenditures were made by the
Director General during the fiscal year under this section. The net
expenditures by him on this account amounted to $33,640,740.24 to
June 30, 1937. ^
Total loans (including renewal loans and repayments thereof aggregating $59,800,000) to June 30, 1937, amounted to $350,600,667,
repayments amounted to $325,377,434.45, and loans outstanding as of
that date amounted to $25,223,232.55. Repayments during the fiscal
year 1937 were made by the follo^ving carriers:
Charles City Western Ry. Co
Shearwood Ry. Co
Total
.'.
.•
_
$140,000
7,600
147,500
The following statement shows the amount of obligations held on
June 30, 1937, on account of loans to carriers under section 210 of
the Transportation Act, 1920, as amended, and the amount of principal
and interest in default:
Obligations held on June 30, 1937, on account of loans to carriers under section 210
of the Transportation Act, 1920, as amended, and the amount of principal and
interest in default
Name of carrier
Alabama, Tennessee & Northern R. R. Corporation
Aransas Harbor Terminal R y .
Des Moines & Central Iowa R. R. Co. (formerly the
Interurban Ry. Co.)
Fort Dodge, Des Moines & Southern R. R. Co
Gainesville & Northwestern R. R. Co
Georgia & Florida Ry. (receiver)
Minneapolis & St. Louis R. R. Co
Missouri & North Arkansas Ry. Co
Salt Lake & Utah R. R. Co
Seaboard Air Line Ry. Co
Seaboard-Bay Line Co.
Virginia Blue Ridge Ry. Co
^
Virginia Southern R. R. Co
Waterloo, Cedar Falls & Northern Ry. Co
^
Wichita, Northwestern Ry. Co
Wilmington, Brunswick & Southern R. R. Co
Total
Loans outstanding
Principal in
default
Interest in
default
$151,500.00
44,304.67
$161,600.00
44,304. 67
$31,815.00
12,041.01
500. 00
200, 000. 00
175, 000.00
792, 000. 00
1, 382, 000.00
1 3, 500,000.00
872, 600.00
14,440, 677.88
1,256, 000.00
106, 000. 00
138, 000.00
1,260, 000.00
381, 750.00
90, 000. 00
633, 500.00
200,000.00
362,137.16
89,164. 91
792,000.00
1,382,000.00
356,400.00
1,123,529. 73
872, 600.00
7,681, 577. 88
1,256,000. 00
106,000.00
654,460.00
5,402,814.80
414,480.00
69, 790. 25
1, 260,000.00
381, 750.00
90,000. 00
1,144,764.44
309,217.50
37, 800.00
25, 223, 232. 55
14,851, 232. 56 10,008,404. 80
1 Assets of these carriers have been completely liquidated, and were insufficient to meet these claims.
Trust and special funds invested by the Treasury
Adjusted service certificate fund.—Investments for the account of
the adjusted service certificate fund, created by the act of May 19,
1924, were made, during the fiscal year 1937, in special issues of
Treasury certificates of indebtedness bearing interest at the rate of
REPORT OF THE SECRETARY OF THE TREASURY
85
4 percent per annum, in accordance with the procedure outlined in
the annual report of the Secretary of the Treasury for the fiscal year
1925.
In accordance with the provisions of the Adjusted Compensation
Payment Act, 1936, enacted January 27, 1936, payments were made
from the fund during the fiscal year 1937 on account of the issuance
of $139,790,000 of adjusted service bonds and on account of checks
for amounts less than $50, totaling $6,618,485.36.
Investments made during the year amounted to $54,900,000, of
which $52,800,000 represented the reinvestment of the principal proceeds of maturing certificates, and $2,100,000 was derived from interest
on investments. During the year $144,100,000 face amount of
certificates were redeemed (including $52,800,000 of maturing certificates and $91,300,000 of certificates redeemed to meet current payments from the fund), the proceeds of which, together with interest
thereon, were credited to the fund.
A statement of the fund as of June 30, 1937 (exclusive of fund assets
held by the Veterans' Administration on account of bank loans on
adjusted service certificates redeemed), is as foUows:
Adjusted service certificate fund, June SO, 1937
F U N D ACCOUNT
Appropriations:
To June 30, 1936 (including $1,730,000,000 appropriated in the Independent Offices
Appropriation Act, 1937, approved Mar. 19, 1936)
$3,126,000,000.00
Interest on investments:
To June 30, 1936
$124,109,442.07
July 1, 1936, to June 30, 1937
4,134,701.88
—
128,244,143.95
Total
r
3,254,244,143.95
Payments under Adjusted Compensation Payment Act, 1936, enacted
Jan. 27, 1936:
Adjusted service bonds
•_.
$1,809,338,500.00
Checks for amounts less than $50
,
82,254,331.34
Total
1,891,592,831.34
Checks paid tjy Treasurer of .the.United Statestother.than in final settlement of certificates under the Adjusted Compensation Payment Act,
1936, less credits on account of repayments of loans and interest .
thereon
1,323,206,736.43
Balance in fund June 30, 1937
3,214,799,567.77
39,444,576.18
F U N D ASSETS i
Investments, 4 percent Treasury certificates of indebtedness
Unexpended balances:
To credit of chief disbursing officer. Division of Disbursement, and disbursing officers *
of the Veterans' Administration with the Treasurer of the United States
.
To credit of fund on books of the Division of Bookkeeping and Warrants
Total fund assets June 30, 1937
37,600,000.00
1,466,242. 66
378,333.52
39,444,576.18
1 Exclusive of assets held by Veterans' Administration.
Civil service retirement and disability fund.—In accordance with the
provisions of the act of May 22, 1920 (41 Stat. 614), creating the civil
service retirement and disability fund, the Treasury continued during
the year to make investments for account of the fund in special issues
of Treasury notes bearing interest at the rate of 4 percent per annum,
in accordance with the procedure outlined in the annual report of
the Secretary of the Treasury for the fiscal year 1926. Total investments amounting to $78,700,000 were made, of which $23,200,000
represented the proceeds of maturing notes. Redemptions, in addition to the maturing notes, were made in the amount of $20,800,000
to meet current payments from the fund.
86
REPORT OF THE SECRETARY OF THE TREASURY
Total credits to the fund during the year amounted to $94,199,668.48
of which $34,986,707.50 was on account of deductions from basic
compensation of employees and service-credit payments; $13,012,960.98 represented interest on investments; $46,050,000 was appropriated by. Congress to fulfill the current liability of the United States
Government in connection with the fund; and $150,000 was appror
priated from the revenues of the District of Columbia to cover its
liability on account of the fund. Total disbursements from the
fund on account of annuities and refunds during the year amounted
to $59,087,717.60. The total earnings and profits on investments to
June 30, 1937, amounted to $95,297,626.16.
The following statement shows the status of .the fund as of June 30,
1937:
Civil service retirement and disability fund, June 30, 1937
Credits:
On account of deductions from basic compensation of employees and
service-credit payments:
From Aug. 1, 1920, to June 30, 1936....
i $381,968,359.03
July 1, 1936, to June 30, 1937._•.....•_
34,986,707.50
"
$416,945, 066. 53
Appropriations:
'
To June 30, 1936
185,600,000.00
Available July 1, 1936..
2 46,200,000.00
231,800,000.00
Interest and profits on investments:
From Aug. 1, 1920, to June 30, 1936
'.
82,284, 666.18
July 1, 1936, to June 30, 1937
.....
13,012,960.98
95,297.626.16
Total
.". 744,042, 692. 69
Less checks paid by Treasurer of the United States on account of annuities and refunds,
Aug. 1; 1920, ,to June.30. 1937
' 409,207,346.94
Total..
Assets:
Face amount .
$6,884,000 3H percent Treasury bonds, 1943-46
4, 621, 650 3H percent Treasury bonds, 1944-46-.__
6,810, 700 2%-percent Treasury bonds, 1955-60
4,378, 700 2H percent Treasury bonds, 1945-47...
72,100,000 4 percent special Treasury notes payable
45, 200,000 4 percent special Treasury notes payable
69,200,000 4 percent special Treasury notes payable
97,900, 000 4 percent special Treasury notes payable
35,000,000 4 percent special Treasury notes payable
334,835,346.75
June
June
June
June
June
332,095,050
Unexpended balances June 30,1937:
To credit of disbursing officers.-_
_.
On books of Division of Bookkeeping and Warrants
Principal cost
$6,794,338.03
4,561. 454.45
6, 721,992.74
. . . . 4,321,668.79
30, 1938
72,100.000.00
30, 1939....... 45, 200,000.00
30, 1940
l. 69,200,000.00
30, 1941
97,900,000.00
30, 1942
36,000,000.00
2,003,790.61
1,032,102.13
331,799,454.01
3, 035,892. 74
Total fund assets June 30, 1937.
334,835,346.75
1 Exclusive of $1,430,808.84 transferred to the Canal Zone retirement and disability fund pursuant to act
of May 2, 1931.
2 Includes $46,050,000 appropriated from the General Fund to cover the liability of the United States
and $150,000 appropriated from the revenues of the District of Columbia to cover its liability in connection
with the financing of the fund.
Foreign service retirement and disability fund.—Under section 18 of
the act of May 24, 1924 (43 Stat. 144), establishing the foreign
service retirement and disability fund, the Secretary of the Treasury
is directed to make investments from time to time of such portion of
the fund as in his judgment may not be immediately required for
authorized payments, the income derived from such investments to
be credited to the fund as a part thereof.
Investments for account of the foreign service retirement and
disability fund were made during the fiscal year 1937 in special issues
of Treasury notes in the face amount of $881,000, bearing interest
at the rate of 4 percent per annum in accordance with the procedure
REPORT OF THE SECRETARY OF THE TREASURY
87
outlined in the annual report of the Secretary of the Treasury for the
fiscal year 1927. Redemptions during the year amounted to $654,000
face amount, including $399,000 maturing notes and $255,000 of notes
redeemed to meet current payments from the fund. The net investments amounted to $482,000.
Credits to the fund during the year aggregated $500,922.78, of
which $190,750.55 was on account of deductions from basic compensation of employees and service-credit payments, $124,872.23 represented earnings on investments, and $185,300 was appropriated by
Congress to meet the current liability of the Government in connection
with the fund.
The following statement shows the status of the fund as of June 30,
1937:
Foreign service retirement and disability fund, June SO, 1937
Credits:
On account of deductions from basic compensation and service-credit payments:
'From May 24,1924, to June 30, 1936
$1,972,038.57
July 1, 1936, to June 30, 1937
190,760.55
Appropriations:
To June 30, 1936
Available July 1, 1936
.1,890,200.00
185,300.00
Interest and profits on investments:
From May 24, 1924, to June 30, 1936
July 1, 1936, to June 30, 1937--..
$2,162, 789.12
2,075,600.00
625,135.20.
124,872.23 •
750,007.43
Total
4,988,296.55
Less checks paid by Treasurer of the United States on account of annuities and refunds.
May 24, 1924, to June 30, 1937.
1,820,980.00
Balance in fund June 30, 1937...
Assets:
Face amount
$614,000 4 percent special Treasury
667,000 4 percent special Treasury
763,000 4 percent special Treasury
659,000 4 percent special Treasury
518,000 4percentspecial-Treasury
3,167,316.65
notes
notes
notes
notes
notes
due June
due June
due June
due June
due June
30, 1938
30, 1939
30, 1940
30, 1941
30, 1942
3,111,000
Unexpended balances June 30, 1937:
To credit of disbursing officers
On books of Division of Bookkeeping and Warrants
Total fund assets June 30, 1937
:
Principal cost
$514,000.00
667,000.00
763,000.00
669,000. 00
518,000.00
•
3,111,000.00
53,118.78
3,197.77
;
56,316.55
3,167,316.65
Canal Zone retirement and disability fund.—Under section 10 of
the act of March 2, 1931 (46 Stat. 1477), creating the Canal Zone
retirement and disability fund, the Secretary of the Treasury is
directed to make investments from time to time of such portions of
the fund as in his judgment may not be immediately required for the
payment of the annuities, refunds, and allowances authorized by the
act, the income from such investments to be credited to the fund.
During the fiscal year 1937 the Treasury continued to make investments for account of the fund in special issues of Treasury notes
bearing interest at the rate of 4 percent per annum in accordance
with the procedure outlined in the annual report of the Secretary
of the Treasury for the fiscal year 1931. Total investments amounting to $634,000 were made, of which $7,000 represented the proceeds
of maturing notes. Redemptions, in addition to the maturing notes,
were made in the aniount of $172,000 to meet current payments from
88
REPORT OF THE SECRETARY OF THE TREASURY
the fund. Credits to the fund during the year aggregated $1,138,159.42, of which $508,491.78 was on account of deductions from basic
compensation of employees and service-credit payments, $129,667.64
represented earnings on investments, and $500,000 was appropriated
by Congress, to fulfill the current liability of the United States in connection with the fund.
^
The following statement shows the status of the fund as of June 30,
1937:
Canal Zone retirement and disability fund, June 30, 1937
Credits:
Account of deductions from basic compensation of employees subject to
retirement act:
From July 1, 1931, to June 30, 1936
$4,123,^841.12
J u l y l , 1936, to June 30, 1937
508,491.78
Appropriations:
To June 30, 1936
Available July 1,1936
500,000.00
500,000.00
Interest and profits on investments:
From July 1, 1931, to June 30, 1936
July 1, 1936. to June 30, 1937
442,523.47
129,667.64
..
-^
$4, 632,332.90
1,000,000.00
572,191.11
Total
6,204,524.01
Less checks paid by Treasurer of the United States, on account of annuities and refunds,
July 1, 1931, to June 30, 1937....
2,836,524.12
Balance in fund June 30, 1937
..
3,367,999.89
Assets:
J ^ d C E CLTJlOlLTlt
$93,000 4 percent
109,000 4 percent
651,000 4 percent
2,317,000 4 percent
134,000 4 percent
J^TlTlciT^ClL
special
special
special
special
special
Treasury
Treasury
Treasury
Treasury
Treasury
notes maturing
notes maturing
notes maturing
notes maturing
notes maturing
June
June
June
June
June
3,304,000
Unexpended balances June 30,1937:
To credit of disbursing officers
On books of Division of Bookkeeping and Warrants
Total fund assets June 30,1937
30,1938
30,1939
30,1940
30, 1941
30, 1942
-^
COSt
$93,000.00
109,000.00
651,000.00
2,317,000.00
134,000.00
53,436.40
10,663,49
3,304,000.00
63,999.89
3,367,999.89
Alaska Railroad retirement and disability fund,—The Alaska Railroad retirement and disability fund was created pursuant to section
9 of the act of June 29, 1936 (49 Stat. 2022), for the retirement of
employees of the Alaska Railroad, Territory of Alaska, who are
citizens of the United States. The fund is under the administrative
supervision of the United States Civil Service Commission. Under
section 10 of the act, the Secretary of the Treasury is directed to
invest from time to time in interest-bearing securities of the United
States or in Federal farm loan bonds such portions of the fund as in
his judgment may not be immediately required for the payment of
the annuities, refunds, and allowances authorized by the act, the
income derived from such investments to be credited to the fund.
Investments for account of the fund are made in special issues of
Treasury notes bearing interest at the rate of 4 percent per annum
in accordance with a procedure similar to that outlined in the annual
report of the Secretary of the Treasury for the fiscal year 1931 covering investments for the Canal Zone retirement and disability fund.
Total investments during the fiscal year 1937 for account of the fund
amounted to $52,000.
The following statement shows the status of the fund as of June 30,
1937:
REPORT OF THE SECRETARY OE THE TREASURY
89
Alaska Railroad retirement and disability fund, June SO, 1937
Credits:
Account of deductions from basic compensation of employees subject to retirement act:
From June 29, 1936, to June 30, 1937.
Appropriations: To June 30, 1937
Interest and profits on investments to June 30,1937
Total
Less checks paid by Treasurer of the United States on account of annuities and refunds
from June 29, 1936, to June 30, 1937
Balance in fund June 30,1937
Assets:
Investments: 4 percent special Treasury notes maturing June 30,1941_
Unexpended balances June 30,1937:
To credit of disbursing officers....
On books of Division of Bookkeeping and Warrants
$108,930.29
490.96
109,421.25
14,893.49
94,527.76
52,000.00.
$17, 743. 61
24,784,25
—^
~
Total fund assets June 30,1937
42. 527; 76
94,527.76
District of Columbia teachers^ retirement fund.—The act of January
15, 1920, as amended by the District of Columbia Appropriation Act
of June 5, 1920, vested the admiuistration of this fund in the Commissioners of the District of Columbia, except that the funds are to
be held and invested by the Treasurer of the United States. A
further amendment of June 11, 1926, created a reserve fund, provided
for annual appropriations to this end, and provided that investments
on account of such fund shall be held by the Treasurer of the United
States separate from the investments on account of contributions of
teachers. During the fiscal year 1937, the Treasurer acquired by
purchase or exchange for account of the deductions fund (derived
from deductions from teachers' compensation) $1,270,000 face amount
of United States and Federal land bank bonds at a principal cost of
$1,289,711.57, as follows:
Class of security
2H percent Treasury bonds of 1951-64
2 ^ percent Treasury bonds of 1965-60
2H percent Treasury bonds of 1956-59-.
3 percent consolidated Federal land bank bonds of 1946-56.
Face
amount
$77,000
622,000
105,000
466,000
TotaL..
Principal
cost
$79,382.19
637,573. 75
107, 920. 63
464,835.00
1, 289, 711. 57
There was also acquired by purchase or exchange for account of
the Government reserve fund $702,200 face amount of United States
and Federal land bank bonds at a principal cost of $706,153.90, as
follows:
Class of security
2% percent Treasury bonds of 1951-64
2}i percent Treasury bonds of 1965-60
2% percent Treasury bonds of 1956-69
cpercent consolidated Federal land bank bonds of 1946-56,
Total
Face
amount
Principal
cost
$17,000
269,000
126,000
290, 200
$17, 525. 94
270, 869. 70
128, 283. 76
289,474. 50
702, 200
706,163.90
Qd
REPORT OF T H E SECRETARY OF T H E TREASURY
The following statement shows the assets of the two funds as of
June 30, 1937:
DEDUCTIONS FUND
Assets:
Face amount
Principal cost
$860,200 454 percent Treasury bonds of 1947-52
$956,962.07
122,000 4 percent Treasury bonds of 1944-64
123,387. 60
87,000 3% percent Treasury bonds of 1946-66..
87,437.81
48,000 3^^ percent Treasury bonds of 1943-47
49,600.00
142,000 3^^ percent Treasury bonds of 1941-43
137,657.60
232,000 ZH percent Treasury bonds of 1943-46
1
232,000.00
1,369,860 2U percent Treasury bonds of 1965-60
1,392,821.89
77,000 2% percent Treasury bonds of 1951-54.
79,382.19
105,000 2% percent Treasury bonds of 1956-59
107,920.63
182,000 41.^ percent Philippine Islands bonds
197,669.56
16,000 AH percent Puerto Rican bonds
16,962. 57
72,000 3M percent Federal Farm Mortgage Corporation bonds of 1944-64.
73,785.00
66,320 4 percent Federal land bank bonds
54,660.95
383,640 4|.^ percent Federal land bank bonds
370,923.02
385,400 4 percent consolidated Federal land bank bonds of 1944-46
403,077.40
177,000 3 percent consolidated Federal land bank bonds of 1945-55
173,460.00
536,500 3 percent consolidated Federal land bank bonds of 1946-56
_. 534,630.00
$4^ 991^ 238.09
4,850,910
GOVERNMENT RESERVE FUND
282,000
12,000
31,000
199,000
178,000
499,000
17,000
126,000
55,000
23,000
215,640
291,300
52,100
290,200
4K percent Treasury bonds of 1947-52
4 percent Treasury bonds of 1944-54...
3M percent Treasury bonds of 1946-56
3^^ percent Treasury bonds of 1943-47
3^^ percent Treasury bonds of 1941-43
2^i percent Treasury bonds of 1966-60
2% percent Treasury bonds of 1951-54-.
2% percent Treasury bonds of 1956-59
41,^ percent Puerto Rican bonds
SH percent Federal Farm Mortgage Corporation bonds of 1944-64.
4 percent Federal land bank bonds.
i H percent consolidated Federal land bank bonds
4 percent consolidated Federal land bank bonds of 1944-46
3 percent consolidated Federal land bank bonds of 1946-56
313,717.61
12,285.00
31,146.31
204,701.25
177,606. 66
502,080.34
17,525.94
128,283.76
65,109.66
23,566.25
208,050.78
275,904.24
54,623.75
289,474.50
2,271,240
Total
Accrued interest paid in 1937 (on investment purchases), repayable in 1938..
Unexpended balance June 30,1937, on books of Division of Bookkeeping and Warrants.
Total fund assets June 30, 1937..
2,294,074.75
7,285,312.84
2,614.34
40,321.13
7,328,248.31
Longshoremen^ s and harbor workers^ compensation fund.—This fund
was established under the act of March 4, 1927 (44 Stat. 1444, sec.
44), to provide for the payment of compensation for disability or
death resulting from injury to employees in certain maritime employments, and for the maintenance of employees undergoing vocational
rehabUitation. Each employer is required to pay into the fund the
sum of $1,000 as compensation for the death of an employee of such
employer resulting from injury where it is determined that there is
no person entitled under the act to receive compensation for such
death. Fifty percent of each such payment shall be available for the
payments on account of injuries increasing previous disabilities, and
50 percent shall be available for the payments on account of maintenance for employees undergoing vocational rehabilitation.
The fund is administered by the United States Employees' Compensation Commission. Moneys not required for immediate disbursement are invested by the Treasurer of the United States. During
the fiscal year 1937, the Treasurer acquired by purchase or exchange
for account of the fund $25,850 face amount of United States and
consolidated Federal land bank bonds at a principal cost of $25,948.70.
The following statement shows the assets of the fund as of June 30,
1937:
REPORT OF THE SECRETARY OF THE TREASURY
91
Longshoremen's and harbor workers' compensation fund, June SO, 1937
Assets:
Face amount
$15,600 3H percent Treasury bonds of 1914-46...
34, 500 4J4 percent Treasury bonds of 1947-52
11, 650 3J4 percent Treasury bonds of 1943-45
_
10,000 3 percent Treasury bonds of 1951-55
14,850 254 percent Treasury bonds of 1956-59
9,700 334 percent Federal Farm Mortgage Corporation bonds of 1944-64
11,000 3 percent consolidated Federal land bank bonds of 1946-66
9,700 3H percent consolidated Federal land bank bonds of 1945-55
22,000 3 percent consolidated Federal land bank bonds of 1945-55
138,900
Unexpended balances:
Disbursing officer (check book balances)
Division of Bookkeeping and Warrants
.•
Principal cost
$15,600.00
38,646.66
11,550.00
9,959. 38
14,976.20
9,953.46
10,972. 50
9,901.74
21,560.00
$143,119.84
3,272.95
15,360.74
Total fund assets June 30, 1937
18,633.69
161,753. 53
District of Columbia workers^ compensation fund.—This fund was
established W d e r the act of May 17, 1928 (45 Stat. 600), which extended the provisions of the act entitled '^Longshoremen's and Harbor
Workers' Compensation Act'', approved March 4, 1927, including all
amendments thereto, to apply in respect to the injury or death of an
employee of an employer carrying on certain employments in the District of Columbia, irrespective of the place where the injury or death
occurs. The fund is derived from collections of awards against employers made by the United States Employees' Compensation Commission,
as compensation for death of employees resulting from injuries, in each
case where no person is found to be entitled to such compensation,
under the Longshoremen's and Harbor Workers' Compensation Act
as extended to certain employments in the District of Columbia. Fines
and penalties collected in connection therewith are also credited to the
fund. One-half of each such collection is available as compensation
for injuries increasing previous disabilities, the other half being available for maintenance of employees undergoing vocational rehabilitation. Any portion of the fund which, in the opinion of the Commission,
is not needed for current requirements is invested by the Treasurer of
the United States. During the fiscal year 1937, $11,000 face amount of
4){ percent Federal land bank bonds called for redemption were
exchanged for $11,000 face amount of 3 percent consolidated Federal
land bank bonds.
The following statement shows the fund assets as of June 30, 1937:
District of Columbia workers' compensation fund, June 30, 1937
Assets:
Face amount
$10,000 2li percent-Treasury bonds of 1956-60
11,000 3 percent consolidated Federal land bank bonds of 1946-56
21.000
Unexpended balances:
Disbursing officer (check book balances)
Division of Bookkeeping and Warrants
Total fund assets June 30, 1937
1
Principal cost
. . . : . . . $10,166.63
10,972.50
$21,138.13
3,610,31
9,365.82
12,976.13
34,114.26
Railroad retirement account,—The railroad retirement account was
established pursuant to section 15 (a) of the Railroad Retirement Act
of 1937, approved June 24, 1937. The Railroad Retirement Board is
required to submit annually to the Bureau of the Budget an estimate
92
REPORT OF THE SECRETARY OF THE TREASURY
of the appropriation to be made to the account for each fiscal year,
beginning with the fiscal year 1937, in an amount as an annual premium
sufficient, with a reasonable margin for contingencies, to provide for.
the payment of all annuities, pensions, and death benefits, and all
amounts credited to the account are ava,ilable for such purposes.
I t is the duty of the Secretary of the Treasury, at the request and
direction of the Railroad Retirement Board, to invest such portion
of the amounts credited to the account as, in the judgment of the
Board, is not immediately recjuired for the payment of annuities,
pensions, and death benefits, in interest-bearing obligations of the
United States or in obligations guaranteed as to both principal and
interest by the United States. Investments may be made in the
following manner: (1) Purchase of original issues at par; (2) purchase
of outstanding obligations at the market price; and (3) the issuance
at par of special public debt obligations exclusively to the account.
Such special obligations shall bear interest at the rate of 3 per centum
per annum and obligations other than special obligati6ns may be
acquired only on such terms as to provide an investment yield of not
less than 3 per centum per annum.
No amounts were credited to the account prior to June 30, 1937.
Old-age reserve account.—Title I I of the Social Security Act, approved August 14, 1935, established a system of Federal old-age
benefits. Section 201 (a) of the act established an account in the
Treasury to be known as the *'01d-Age Reserve Account." The
Secretary of the Treasury is required to submit annually to the Bureau of the Budget estimates of the appropriations required to be
made to this account. The actuarial status of the account is shown
on page 51 of this report.
I t is the duty of the Secretary of the Treasury to invest such portions of the amounts credited to the account as are not, in his judgment, required to meet current withdrawals. Such investments
may be made only in interest-bearing obligations of the United States
or in obligations guaranteed as to both principal and interest by the
United States. The purposes for which obligations of the United
States may be issued under the Second Liberty Bond Act, as amended,
are extended under the Social Security Act to authorize the issuance
to the account of special obligations bearing interest at the rate of
3 percent per annum. Obligations other than special obligations
may be acquired for the account only on such terms as to provide an
investment yield of not less than 3 percent per annum. All amounts
credited to the account are available for making payments required
under title I I of the act. The Treasury Department makes all benefit
payments from the account in accorclance with the certification by
the Social Security Board.
The total credits to the account during the fiscal year amounted
to $267,261,810.97, of which $265,000,000 was appropriated by Congress and $2,261,810.97 represented interest on investments. Investments aggregating $267,100,000 were made during the year in 3 percent
special Treasury notes, old-age reserve account series, maturing June
30, 1941 and 1942. Benefit payments aggregating $45,829.57 were
made by the Chief Disbursing Officer on certifications of the Social
Security Board.
The following statement shows the status of the account as of
June 30, 1937:
REPORT OF THE SECRETARY OF THE TREASURY
93
Old-age reserve account, June 30, 1937
Credits:
Appropriation available July 1, 1936. _
Interest on investments to June 30, 1937
Less pa3rments (checks issued) on account of—
Lumpsum payments
Payments upon death
$266,000,000.00
2,261,810.97
32,596.38
13,233.19
•
Balance in account June 30,1937
$267, 261,810. 97
45,829. 57
267,216,981.40
Assets:
Face amount
Principal cost
$264,900,000 3 percent special Treasury notes, maturing June 30, 1941.. $264,900,000. 00
2,200,000 3 percent special Treasury notes, maturing June 30, 1942..
2,200,000.00
Unexpended balances June 30. 1937:
•"
To credit Chief Disbursing Officer
On books of Division of Bookkeeping and Warrants...
Total assets June 30, 1937
267,100,000.00
64,170.43
61,810.97
115^ 981.40
267,215,981.40
Unemployment trust fund.—The unemployment trust fund was
established pursuant to section 904 (a) of the Social Security Act,
approved August 14, 1935. The Secretary of the Treasury is authorized and directed to receive and hold in the fund all moneys deposited
therein by a State agency from a State unemployment fund.
I t is the duty of the Secretary of the Treasury to invest such portion
of the fund as is not, in his judgment, required to meet current withdrawals. Such investments may be made only in interest-bearing
obligations of the United States or in obligations guaranteed as to
both principal and interest by the United States. The act provided
three methods for making these investments: (1) Purchase of original
issues at par, (2) purchase of outstanding obligations at the market
price, and (3) the issuance at par of special public debt obligations
exclusively to the fund. Such special obligations shall bear interest
at a rate equal to the average rate of interest, computed as of the end
of the calendar month next preceding the date of such issue, borne by
all interest-bearing obligations of the United States then forming part
of the public debt; except that where such average rate is not a multiple of one-eighth of 1 percent the rate of interest of such special
obligations shall be the multiple of one-eighth of 1 percent next lower
than such average rate. Obligations other than such special obligagations may be acquired for the fund only on such terms as to provide
an investment yield not less than the yield which would be required
in the case of special obligations if issued to the fund upon the date of
such acquisition.
The act provides that the fund shall be invested as a single fund,
iand that the Secretary of the Treasury shall maintain a separate
book account for each State agency and shall credit quarterly on
March 31, June 30, September 30, and December 31 of each year to
each account, on the basis of the average daily balance of such account, a proportionate part of the earnings of the fund for the quarter
ending on such date.
The total credits to the fund during the fiscal year amounted to
$295,653,140.08, of which $292,915,958.16 was received from State
agencies and $2,737,181.92 represented interest on investments.
Payments aggregating $1,000,000 were made during the year to State
agencies upon their requisitions. Investments were made during the
year in special Treasury certificates of indebtedness bearing interest
at the rate of 2^^ percent per annum in accordance with the statutory
16109—38
8
94
REPORT OF THE SECRETARY OF T H E TREASURY
formula. Total investments amounted to $596,389,000, of which
$303,003,000 represented the proceeds of certificates maturing June
30, 1937, making the net investments for the year $293,386,000.
The following statement shows the status of the fund as of June
30, 1937:
Unemployment trust fund, June 30, 1937
Credits:
On account of deposits by State agencies:
To June 30, 1936
July 1, 1936, to June 30. 1937..
$18,857,720.50
292,916,968.16
$311,773. 678. 66
Interest on investments:
To June 30, 1936
July 1, 1936, to June 30, 1937
91,700.94
2,737,181.92
Total
:
Less withdrawals by State agencies...
Balance in fund June 30. 1937
314,602,561.52
1,000,000.00
313, 602. 561. 62
Assets:
$312,296,000 face amount 2|^ percent Treasury certificates of indebtedness, unemployment trust fund series, maturing .Tune 30, 1938, principal cost
312,295,000.00
Cash balance with Treasurer of the United States
1,307,561. 52
Total fund assets June 30, 1937
313, 602,661.52
The following statement shows the amounts to the credit of State
agencies as of June 30, 1937:
Unemployment trust fund, June 30, 1937, status of book account for each State agency
State agency
Alabania Unemployment Compensation Commission
Arizona Unemployment Compensation Commission
State of California Unemployment Reserves
Commission.^.
_.
Industrial Commission of Colorado
Connecticut unemployment compensation
fund
District unemployment fund (District of Columbia)
Unemployment compensation fund of Idaho..
Indiana unemployment trust fund
:_.
Iowa unemployment compensation fund
Kentucky unemployment compensation fund.
• Louisiana unemployment trust fund
Maine Unemployment Compensation Commission
Unemployment trust fund of the State of
Maryland
Treasurer and Receiver General of the Commonwealth of Massachusetts
Michigan Unemplojnnent
Compensation
Commission
'.
Minnesota Unemployment Compensation
Commission
Mississippi unemployment trust fund
State of New Hampshire unemployment compensation fund
Unemployment compensation fund of New
Jersey
Unemplo3nnent Compensation Commission
of the State of New Mexico
State of New York Division of Placement and
Unemployment Insurance
North Carolina unemployment reserve fund...
Unemplo3rment Compensation Commission
of Ohio
Division of Unemployment Compensation and
Placement of the State of Oklahoma
Unemployment Compensation Commission of
Oregon
._
Total deposits Net earnings Total with- Balance to
from State
drawals credit of State
credited to
unemployfrom
agency June
account
ment fund
account
30,1937
$4,888, 360. 65
$23,
926,857.13
4,
27, 666, 400. 00
;4,911, 753.12
62
930, 784. 66
2, 295, 233. 60
242,
14,
27,909, 344. 34
2,309, 943.41
8, 400, 000. 00
. 46,
8,446, 814. 60
3, 481, 289. 06
898, 520. 66
13, 915, 375. 93
2,750,000.00
2, 500, 000. 00
46,
6,
143,
6,
10,
24,
3, 528, 047. 77
904, 010. 47
14, 058, 452. 89
2, 756, 610.16
2, 510, 459. 81
3,824, 169.43
3, 800, 000. 00
• 1, 850, 000. 00
3, 000, 000. 00
18, 700, 000. 00
13, 040, 000. 00
4, 700, 000. 00
1,134, 382. 09
10,
1,860,
16, 919.
3, 016, 919. 51
169, 145.
18,869, 145.19
91, 614.
13,131, 614.88
29, 730.
12, 200.
650, 000. 00
4, 169.
56, 000,000. 00
663, 174.
32, 855.
4,729, 730.48
1,146,
582.13
2, 300,
138.55
16,635,
414.88
664,
169. 04
56, 663, 174. 64
5, 552, 855. 72
. 117, 807.
17, 119, 822. 46
2,282,616.84
17, 521.
16,550, 000. 00
86, 414.
5, 520, 000. 00
17, 002,015. 39
22,
3, 627, 980.14
39, 409.
3, 351, 296.64
3, 505, 000. 00
3,311,887.48
BEPORT OF THE SECRETAEY OF THE TREASURY
95
Unemployment trust fund, June 30, 1937, status of book account for each State
agency—Continued
State agency
Total deposits Net earnings Total with- Balance of
from State
drawals credit of State
credited to
unemployfrom
agency June
account
ment fund
account
30,1937
Pennsylvania unemployment trust fund.
$37,780,000.00
Rhode Island unemployment compensation
4, 467, 827.46
fundSouth Carolina Unemployment Compensation Commission
2, 500, 000. 00
Unemployment Compensation Commission of
South Dakota
470, 000. 00
Tennessee unemployment compensation fund3, 800, 000. 00
Texas Unemployment Compensation Com-.
10, 585, 000. 00
mission
.
Utah unemployment compensation fund
1,113, 367. 70
Vermont unemployment trust fund..
...
656, 342.98
.Unemployment Compensation Commission
4, 300, 000. 00
of Virginia.
3, 589,467. 76
West Virginia unemployment trust fund'.
23, 744, 734. 03
Industrial Commission of Wisconsin
Total
$224,190.67
$38, 004,190.67
37,769.97
4, 505, 697.43
17,695.89
2, 517, 695.89
3,367.73
18, 061.16
473, 367.73
3,818,051.16
73, 749.45
9, 229. 72
4, 301. 82
10, 658, 749.45
1,122, 597. 42
660, 644. 80
21,153: 45
22, 764. 62
513, 442.32 $1, 000, 000
311, 773, 678. 66 2,828,882.86
4,321,153.45
3, 612, 222. 38
23, 258,176.35
1, 000, 000 313, 602, 561. 52
United States Government life insurance fund.—The United States
Government life insurance fund was estabhshed under the World War
Veterans' Act, 1924, approved June 7, 1924 (43 Stat. 607), which,
among other things, consohdated, codified, revised, and reenacted the
laws affecting the administration of the War Risk Insurance Act, as
amended. Under section 17 of the World War Veterans' Act, 1924,
as amended, the Secretary of the Treasury is authorized to invest
and reinvest the United States Government life insurance fund, or
any part thereof, in interest-bearing obligations of the United States
or bonds of the Federal farm loan banks and to sell such investments
for the purposes of the fund. The fund is also available to the
Administrator of Veterans' Affairs for making loans upon the security
of Government hfe insurance pohciies. The act approved March 3,
1927, as amended by the Emergency Adjusted Compensation Act
of February 27, 1931, authorized the Administrator of Veterans'
Affairs to make loans to veterans upon their adjusted service certificates out of the United States Government hfe insurance fund.
All of the funds available for investment during the fiscal year 1937
were used to make loans upon Government life insurance policies or
were invested in obhgations of the United States.
Under the provisions of the Adjusted Compensation Payment Act,
1936, enacted January 27, 1936, the Secretary of the Treasury issued
to the fund, during the fiscal year 1937, $500,157,956.40 face amount
of 4K percent adjusted service bonds (Government life insurance fund
series, 1946), in payment of the amount of liens against adjusted
service certificates on account of loans made on such certificates from
the fund, including all interest due or accrued, together with amounts
due under subdivision (m) of section 502 of the World War Adjusted
Compensation Payment Act, as amended. These bonds are dated
June 15, 1936, are redeemable at any time upon certification by the
Administrator of Veterans' Affairs that the amount represented by
such bonds is required to meet current habilities, and are payable on
or after June 15, 1946.
During the fiscal year 1937, $32,068,000 face amount of 4:% percent
Federal land bank bonds due in 1947 and 1956 were called for redemp
96
REPORT OF THE SECRETARY OF THE TREASURY
tion, of which $22,719,000 were exchanged for a like face amount of
3 percent consolidated Federal land bank bonds of 1946-56, and
$9,349,000 face amount were redeemed for cash and the proceeds
reinvested in Treasury bonds.
The Administrator of Veterans' Aft'airs reported outstanding loans
from this fund on June 30, 1937, aggregating $132,162,379.23 to
veterans on policies. On June 30, 1937, the principal of outstanding
loans made subsequent to the enactment of the Adjusted Compensation Payment Act, 1936, upon adjusted service certificates amounted
to $2,097,240.23.
Monthly reports are made by the Treasury to the Veterans' Administration of all securities in the fund and the principal cost thereof as
the result of investments made by the Secretary of the Treasury, and
periodic verifications of the security holdings are made through reports
rendered to the Administrator by the safekeeping offices. The investments as of June 30, 1937, were as follows:
Government life insurance fund, June SO, 1937
Par value
AM percent Treasury bonds of 1947-52..
4 percent Treasury bonds of 1944-54
3M percent Treasury bonds of 1946-66
3 percent Treasury bonds of 1951-55
ZM percent Treasury bonds of 1949-52
2li percent Treasury bonds of 1955-60...
2 ^ percent Treasury bonds of 1945-47
2% percent Treasury bonds of 1948-51
254 percent Treasury bonds of 1951-54
2^i percent Treasury bonds of 1960-59..
2J^ percent Treasury bonds of 1949-53
3 percent consolidated Federal land bank bonds of 1945-55..
3 percent consolidated Federal land bank bonds of 1946-56
AM percent Federal land bank bonds
AVi percent adjusted service bonds, Government life insurance fund series,
1948
Total investments made by Secretary of the Treasury
Policy loans outstanding
..1
Adjusted service certificate loans outstanding
Total outstanding loans made by Administrator of Veterans'
Affairs
.Total investments in fund
$41,272, 000.00
14,106, 000. 00
2, 200,000.00
6,600,000.00
1,250, 000.00
98,899, 250. 00
60, 000. 00
6,300, 000.00
16, 345,COO. 00
24,453, 300. 00
1,400, 000.00
19, 280.000. 00
22,719, 000. 00
482, coo. 00
Principal cost
$42, 752,867.12
15, 078,333.48
2, 384,625.00
5, 642,421.88
1,304, 343. 75
100.350, 887.17
50, 898.44
5, 315,000.01
16, 688,340. 64
24, 724,185. 66
1, 369,265. 63
18,894, 400. 00
22, 662,202. 60
481, 362. 97
600,157,956.40
600,167,966.40
753, 414, 506. 40
757, 757,080. 65
132,162, 379. 23
2,097, 240. 23
132,162,379. 23
2,097, 240. 23
134,259, 619. 46
134,259,619. 46
887,674,125.86
892,016,700.11
Library of Congress trust fund.—Under the act of March 3, 1925,
as amended, the Library of Congress Trust Fund Board, consisting
of the Secretary of the Treasury, the chairman of the Joint Committee on the Library, the Librarian of Congress, and two persons
appointed by the President, is authorized to accept, receive, hold, and
administer such gifts or bequests of personal property for the benefit
of or in connection with the Library, its collections, or its service as
may be approved by the Board and by the Joint Committee on the
Library. The moneys or securities given or bequeathed to the Board
are required to be receipted for by the Secretary of the Treasury, who
is authorized to invest, reinvest, or retain investments as the Board
may determine.
The act approved June 23, 1936, amended section 2 of the act of
March 3, 1925, so as to authorize the Board in its discretion, unless
prevented by the terms of a gift or bequest, to deposit the principal
of any gift or bequest with the Treasurer of the United States as a
97
EEPORT OF THE SECRETARY OF THE TREASURY
permanent loan with interest at the rate of 4 percent per annum,
payable semiannually, provided that such principal sums held by the
Treasurer shall not exceed $5,000,000 at any time. In view of this
authority, the Board during the fiscal year 1937 authorized the sale
from time to time of certain securities held under various donations
and directed that the principal proceeds of such sales be deposited in
the permanent loan account. Total deposits in the permanent loan
account from this source during the year amounted to $287,992.61.
During the year the Board accepted an additional gift from Mr.
Archer M. Huntington embodied in a deed of trust executed by him
on November 18, 1936, under which the Library of Congress becomes
the beneficiary in perpetuity of one-half of the income from certain
securities. Income received from this gift in the fiscal year 1937
amounted to $10,771.25.
The transfer to the Library of Congress Trust Fund Board of the
property devised and bequeathed to the United States by the last
will and testament of Joseph PenneU, deceased, referred to on page
98 of the annual report for 1936, had not been consummated as of
June 30, 1937. However, during the year certain income from assets
of the 'Tennell fund" was deposited in the income account available
for authorized expenditures.
The following statement shows the earnings credited to each donation as of June 30, 1937:
Library of Congress trust fund earnings to June SO, 1937
T o t a l to
J u n e 30,
1936
Donation
Fiscal y e a r
1937
T o t a l to
J u n e 30,
1937
I n c o m e account, securities
Babine
Beethoven
Benjamin
Bowker
Carnegie
Coolidge.
Guggenheim
Huntington...
Longworth
.^
PennellWilbur
86,166. 44
$437.21
505.89
1,825'. 20
84.20
3,486. 22
8,034.93
3, 791. 59
16, 745.14
294. 04
500. 00
13.724. 23
$1,783.08
3, 761. 96
26,016.90
1,000. 84
34,330.98
83,402.92
28, 030.19
64, 351. 25
757. 02
600. 00
99,890.67
294, 387.16
49, 428. 65
343,815. 81
$1,.345..87
3, 246. 07
24,191. 70
916.64
.30,844. 76
76,367. 99
24, 238. 60
47, 606.11
462. 98
!
_
_
. . ..
Total
I n c o m e account, p e r m a n e n t
loan fund
Babine
Carnegie
Coolidge
Guggenheim
Loncworth
Whittall
Wilbur
...
..
_.
..
..
$055
.04
11.37
.04
4.53
3,103.83
116. 33
_
_
T o t a l . . '.
G r a n d total
$294,387.16
$0.55
.04
11.37
.04
4.53
3,103.83
116.33
3.236. 69
3, 236. 69
52, 665. 34
347,052. 60
98
REPORT OF THE SECRETARY OF T H E TREASURY
The following statement shows the principal cash account of each
donation:
Library of Congress trust fund—principal cash receipts, cost of investments, and
unexpended balances, fiscal year 1937
Principal cash account
Unexpended
balance
June 30,
1936
Donation
Babine
Beethoven
Benjamin
Bowker . .
Carnegie
Coolidge
Guggenheim
Huntington
Longworth.
Wilbur
.-
. •
.
Total .
.
...
^
.
-
.
$38.16
4.00
26.62
96.27
80.00
16.26
79.60
33.75
107.49
708.18
1,190.33
Cost of investments
charged to
principal
account
during
year
Unexpended
balance
June 30,
1937
Receipts
during
year i
. Available
during
year
$4,460.00
$4,498.16
4.00
26.62
96.27
80.00
• 21,656. 26
79.60
33.75
227. 21.
994. 21
60.00
50.00
21,621.06
50.00
100.00
778. 29
$67.66
4.00
26.62
46.27
30 00
35.20
29.60
33.75
127. 21
216.92
27,696,08
27,089.86
606.23
21,640.00
119.72
286.03
26, 505, 75
$4,440.50
1 Excludes transactions reflecting sales of securities, the proceeds of which were deposited in permanent
loan account.
A cash donation of $100 was received on account of the Longworth
Foundation. Receipts aggregating $26,405.75 were received from
maturing investments of various donations. Investments made
during the year were as follows:
Face
amount
Donation
Babine
Do . . .
Bowker
Carnegie.
Coolidge.
Do-_Guggenheim
Longworth
Wilbur....
Total.
.
$3,800
650
50
50
• 9,850
. 11, 600
50
100
750
26,900
Securities
3 percent consolidated Federal land bank bonds of 1966
2% percent Treasury bonds of 1955-60
do
do
do—
3 percent consolidated Federal land bank bonds of 1956
2j^ percent Treasury bonds of 1966-60
do
_
do—.
:..
Prmcipal
cost charged
to principal
account '
$3,790 50
650.00
50 00
50.00
10,050.06
11, 571.00
60.00
100.00
778.29
27, 089.85
The following statement shows the securities held by the Board
for account of each donation as of June 30, 1937. The securities are
held in safekeeping by the Treasurer of the United States and certain
Federal Reserve banks, subject to the order of the Secretary of the
Treasury, for account of the Board.
REPORT OF THE SECRETARY OF THE TREASURY
99
Securities held by the Library of Congress Trust Fund Board, June SO, 1937
Face
amount
or p a r
value
N a m e of security
R a t e of
interest
Class of security
Alexis V. Babine donation
Percent
Tung-Sol L a m p W o r k s , I n c . , 6 shares
T u n g - S o l L a m p W o r k s , I n c . , 5% shares..
Preferred stock.
C o m m o n stock.
(0
(0
Beethoven Association donation
Canadian National Railways..
Guaranteed
bonds.
$10,000
gold
William E . Benjamin donation
S t a n d a r d Oil Co. of California
33,800
Common stock.
1,000
Treasury bonds of
1966-60.
German external
loan.
6M Sinking fund gold
bonds.
Common stock.
jR. R . Bowker donation 2
U . S. G o v e r n m e n t
__..
.---.----
-
German Government
2,000
Japanese Government
2,000
A m e r i c a n Telephone & T e l e g r a p h C o . .
4,800
7
Carnegie donation
Commonwealth Edison C o .
62,000
Missouri Pacific R . R . C o . . . .
5,000
N e w E n g l a n d T e l e p h o n e & T e l e g r a p h Co
25, 000
First
mortgage
' bonds.
First and refunding
mortgage bonds.
mortgage
43/2 F i r s t
bonds.
5
Elizabeth Sprague Coolidge donation
Canadian National Railways
7,000
Do
Chicago R a i l w a y s Co
Missouri Pacific R . R . Co
10, 000
3,760
5
6
2,000
5
N e w England Telephone & Telegraph Co..
16, 000
P u b l i c Service Co. of N o r t h e r n Illinois
13,000
5
Utah Power & Light Co
10, 000
5
A m e r i c a n Ship B u i l d i n g Co
A m e r i c a n T e l e p h o n e & Telegraph Co
A m e r i c a n W i n d o w Glass C o .
B o a r d of T r a d e B u i l d i n g T r u s t of B o s t o n . .
C o m m o n w e a l t h E d i s o n Co
Elgin N a t i o n a l W a t c h C o
Mexican Northern R y . C o .
P u b l i c Service C o . of N o r t h e r n Illinois
6,000
17,100
2,500
700
12,400
5,625
800
5,000
G u a r a n t e e d gold
bonds.
Do.
First mortgage
bonds.
First and refunding
mortgage bonds.
First
mortgage
bonds.
First and refunding
mortgage bonds.
First
mortgage
bonds.
Common stock.
Do.
Do.
Do.
Do.
Do.
Do.
Preferred stock.
H a r r y F . Guggenheim donation
H a r b o r .Commissioners of M o n t r e a l
75,000
Guaranteed
bonds.
gold
49,500
First and refunding
mortgage bonds.
44, 000
G u a r a n t e e d gold
bonds.
Preferred stock.
Archer M . Huntington donation
Missouri Pacific R . R . Co
J a m e s B . Wilbur donation
Canadian National Railways
P u b l i c Service C o . of N o r t h e r n Illinois
TotaL...
100,000
615,976
1 No par.
2 Life interest in ^-f of income retained u n d e r t e r m s of donation.
100
REPORT OF T H E SECRETARY OF T H E TREASURY
The status of the permanent loan account as of June 30, 1937, is
as follows:
Library of Congress Trust Fund Board, permanent loan account, June 30, 1937
Donation
Babine
Beethoven
Carnegie
Coolidee
Guggenheim .
Huntington
<^
. . .
. . .
Amount
$6,537.93
109.13
524.59
26,139.82
812.12
113,396.99
1
Donation
Amount
Longworth
Whittall
Wilbur
$7, 664.38
100,000.00
132,907. 65
Total
387,992.61
National Institute of Health gift fund.—By the act of May 26, 1930
(46 Stat. 379), the Secretary of the Treasury is authorized to accept
unconditional gifts for study, investigation, and research in the
fundamental problems of the diseases of man, and for other purposes.
It is also provided that he may accept conditional gifts upon the
recommendation of the Surgeon General and the National Institute
of Health. Any such gifts are to be held in trusts and invested by the
Secretary of the Treasury in securities of the United States.
In order to meet expenditures of the institute for the account of the
Chemical Foundation donation, $1,000 face amount of 4}^ percent
Treasury bonds of 1947-52 were sold. The receipts and expenditures
of the conditional gift fund during the year were as follows:
National Institute^of Health conditional gift fund, receipts and expenditures, fiscal
year 1937
Unexpended balance June 30,1936
Receipts:
Net earnings collected on investment account of Chemical Foundation
Principal cost of security sold during year, Chemical Foundation account
Total
Expenditures, advances to institute:
Chemical Foundation, donation
Rockefeller Foundation donation,.dental survey.(net)....
Rockefeller Foundation, coiinty health work
$10,984.43
3,693.05
1,116.68
16,793.16
$4,583.26
2^643.34
7,000.00
14,226.60
Unexpended balance June 30,1937
1,566.56
The following statement shows the status of the fund as of June 30,
1937:
National Institute of Health conditional gift fund, June SO, 1937
Credits;
Donations:
Chemical Foundation
Rockefeller Foundation
$100,000.00
22,000.00
Net earnings on investments. Chemical Foundation
Total..
Less advances to meet expenditures on account of the institute:
Chemical Foundation
Rockefeller Foundation, dental survey
Rockefeller Foundation, county health work
.$28, 762.79
13,901.39
7,000.00
Balance in fund June 30,1937...
Assets:
$86,000 face amount 4H percent Treasury bonds of 1947-62, principal cost..
Unexpended balances on books of Division of Bookkeeping and Warrants:
•Chemical Foundation
Rockefeller Foundation, dental survey
Total fund assets June 30.1937
$122,000.00
24,053.31
146,053.31
49,664.18
96, 399.13
94,832. 57
$467.95
1,098.61
1, 566. 56
96.399.13
REPORT OF THE SECRETARY OF THE TREASURY
101
National park trust fund.—Under the act of July 10, 1935 (49 Stat.
477), the National Park Trust Fund Board, consisting of the Secretary
of the Treasury, the Secretary of the Interior, the Director of the
National Park Service, and two persons appointed by the President,
was created and established and is authorized to accept, receive, hold,
and administer such gifts or bequests of personal property for the
benefit of, or in connection with, the National Park Service, its activities, or its service, as may be approved by the Board, but no such
gift or bequest which entails any expenditure not to be met out of the
gift, bequest, or the income thereof shall be accepted without the
consent of Congress. The moneys or securities given or bequeathed
to the Board are required to be receipted for by the Secretary of the
Treasury, who is authorized to invest, reinvest or retain investments
as the Board may determine. Income from investments shall be
covered into the national park trust fund.
The Board accepted during the year a donation of $3,000 from the
Universal Pictures Corporation. There was also received, subject to
acceptance by the Board, a donation of $1,000 from the Twentieth
Century Fox Film Corporation. These donations were made in
appreciation of the privileges accorded the respective companies in
filming motion pictures in the national parks.
There were purchased during the year for account of the fund $2,950
face amount of 2% percent Treasury bonds of 1955-60. No expenditures have been made from the fund.
The following statement shows the status of the fund as of June 30,
1937:
National park trust fund, June SO, 1937
Credits:
Donations:
Metro-Goldwyn-Mayer Distributing Corporation
Universal Pictures Corporation
Twentieth Century Fox Film Corporation
Interest earned on investments
$5,000.00
3,000.00
1,000.00
142.91
Total
9,142.91
Assets:
$7,800 face amount of 2% percent Treasury bonds of 1955-60, principal cost
Unexpended balances:
On books of Division of Bookkeeping and Warrants
special account, Chief Disbursing OflQcer
Total......
,
7,982.14
$160.77
1,000.00
1,160.77
_. 9,142.91
Ainsworth library fund, Walter Reed General Hospital.—Under the
joint resolution of Congress approved May 23, 1935 (49 Stat. 287),
the adjutant, Walter Reed General Hospital, was authorized to accept
the bequest of the late Maj. Gen. Fred C. Ainsworth, as contained in
his last will and testament, and to receipt therefor on behalf of the
United States, and to deposit the funds so received in the Treasury of
the United States as a special fund dedicated to the purpose of establishing a permanent library at the Walter Reed General Hospital, to
be Imown as the ' T r e d C. Ainsworth Endowment Library,^^ said fund
to be subject to disbursement for such purpose upon vouchers submitted by the adjutant, Walter Reed General Hospital, and to be
available until expended. The administration, control, and expenditure of the fund and its application to the purposes intended shall be
according to the sole discretion of the adjutant, Walter Reed General
Hospital.
102
REPORT OF THE SECRETARY OF THE TREASURY
The Treasurer of the United States, upon the written request of the
adjutant, Walter Reed General Hospital, is authorized to invest and
reinvest any part or all of the corpus of the bequest, as well as any
income therefrom, in interest-bearing United States Government
bonds, and to retain custody thereof.
The amount of $10,700 was deposited in the Treasury during the
fiscal year 1937 on accounj) of the bequest of Maj. Gen. Fred C.
Ainsworth. The following statement shows the status of the fund as
of June 30, 1937:
Ainsworth library fund, Walter Reed General Hospital, June 30, 1937.
Receipts:
Bequest of Maj. Gen. Fred C. Ainsworth.
Net earnings on investments
Expenditures
$10,700.00
122.40
10,822.40
571.82
i
Balance in fund
10,260.68
Assets:
$9,700 2li percent Treasury bonds, 1956-60, cost
Unexpended balance, on books of Division of Bookkeeping and Warrants
9,972.81
277.77
Total fund assets June 30, 1937
10,250.58
Alien property trust fund.—Under the act of October 6, 1917, as
amended, and the Settlement of War Claims Act of 1928, approved
March 10, 1928 (44 Stat. 254), as amended, the Secretary of the
Treasury held on June 30, 1937, Government securities in the face
amount of $30,110,200 for account of the Attorney General, Alien
Property Bureau, of which $800,000 constituted additional purchases
during the fiscal year 1937. A statement of the alien property trust
fund as of September 15, 1937, follows:
Alien property trust fund, September 15, 1937
Credits:
Trusts.
E&-rnings on investments, etc
:.
$37,286,090.88
^. 32,372, 291.19
Total
Assets:
,
Face amount
$9,800,000 4 percent Treasury bonds of 1944-54
5,100,000 3M percent Treasury bonds of 1943-45...
10,200 2H percent Treasury notes maturing June 16,1939
1,100,000 3 percent Treasury bonds of 1951-66
500, 000 3H percent Treasury bonds of 1949-62
3,220,000 2]^ percent Treasury notes maturing Sept. 15, 1938
6,280,000 2% percent Treasury bonds of 1955-60
3,300,000 2% percent Treasury bonds of 1945-47
350,000 2H percent Treasury bonds of 1951-54
200,000 2 percent Treasury notes maturing Sept. 15, 1942
250,000 254 percent Treasury bonds of 1966-59
69,668,382.07
Principal at
amortized cost
$10, 268,433. 57
5,100,000.00
....
10,413.56
1,136,823.37
618, 267.89
3,220,000.00
6,307,799.14
3,300,000.00
350,000.00
200,000.00
249,765.63
—.
30,660,503.16
30,110, 200
Accrued interest receivable..
Participating certificates issued under sec. 25 (e) of the Trading with the Enemy Act:
Noninterest-bearing
$21,000,000.00
5 percent interest-bearing
- 17, 562,096.91
Cash with Treasurer of the United States
Total fund assets Sept. 15, 1937..
174,225.93
38,562,096.91
271,566.07
69,658,382.07
Checks issued by the Treasury Department during the fiscal year on
account of the alien property trust fund were as follows:
To the Attorney General, Alien Property Bureau, for—
Distribution of income...
Distribution of Government earnings
Administrative expenses
Total
:
_.-.
_
$150,000
85,000
266.000
500,000
REPORT OF THE SECRETARY OF THE TREASURY
103
Pershing Hall Memorial fund.'—The act of June 28, 1935 (49 Stat.
426), authorized the appropriation of $482,032.92 of the recreation
fund—Army, created by the War Department Appropriation Act,
approved March 4, 1933, for effecting a settlement of any indebtedness
connected with Pershing Hall, a memorial already erected in Paris,
France, under the auspices of the American Legion, Inc., to the
commander-in-chief, officers, men, and auxiliary services of the
American Expeditionary Forces. I t provided that this amount would
not be used for the purposes set forth in the act until legal title to
Pershing Hall had been vested in the United States Government for
the use and benefit of all American officers and enlisted men of the
World War. I t further provided that the balance remaining after
settlement of the indebtedness would be retained in a special fund to
be known as the Pershing Hall Memorial fund. Under the terms of
the act, the Secretary of the Treasury is authorized (a) to invest and
reinvest the corpus of this fund in interest-bearing United States
Government bonds, and (b) upon request of the American Legion,
Inc., to pay to the national treasurer of the Legion any part of the
earnings upon the fund for use in the maintenance and/or perpetuation
of Pershing Hall. An appropriation for these purposes was provid*ed
by the act of August 12,. 1935 (49 Stat. 594), and pursuant thereto
$482,032.92 was transferred from recreation fund—Army to the
Pershing Hall Memorial fund on January 8, 1936. No expenditures
were made from the fund prior to June 30, 1936.
On August 3, 1936, the Secretary of the Treasury acting in conjunction with the Attorney General completed acquisition of Pershing Hall
for the United States.
The status of the fund as of June 30, 1937, was as follows:
Pershing Hall Memorial fund, June SO, 1937
Credits:
Appropriation by Congress
Interest on investment
..
$482,032.92
6,264.75
Total..._
Less disbursements on account of current claims and expenses
Balance in fund June 30, 1937.
$487,287.67
230,998.58
256,289.09
Assets:
Principal cost
$234,660 2K percent Treasury bonds of 1951-64
.
. . $238,508.03
Balance to credit of fund on books of Treasury and in the hands of disbursing
ofl3cers
17,781.06
Total
256,289.09
Special funds
Colorado River Dam fund.—This fund was established under the act
of December 21, 1928, to provide for the construction of works commonly referred to as the Boulder Canyon project. All revenues received in carrying out the provisions of the act are payable into the
fund and expenditures are made out of the fund, under the direction
of the Secretary of the Interior.
The Secretary of the Treasury is authorized to advance to the
fund, from time to time, within the appropriations therefor, such
amounts as the Secretary of the Interior deems necessary for carrying
out the provisions of the act, except that the aggregate amount of such
advances shall not exceed $165,000,000. Further information with
respect to this fund appears on page 105 of the annual report for 1936.
104
REPORT OF THE SECRETARY OF THE TREASURY
The status of the advances made to the fund as of June 30, 1937, was
as follows:
Advances to Colorado River Dam fund, June SO, 1937
Advances from
Fiscal year
Fiscal year
Fiscal year
Fiscal year
Fiscal year
Fiscal year
Fiscal year
General Fund:
1931
1932.
1933..
1934
1935...
1936
1937
Interest:
Fiscal
Fiscal
Fiscal
Fiscal
Fiscal
Fiscal
Fiscal
1931
1932..
1933.
1934.
1936.
1936
1937
year
year
year
year
year
year
year
$1,745,866.46
17,018,608.34
19,709,297.48
19,684,789.68
22,299,521.44
18,766,009.81
7,660,641.30
°
^
.
Total
.•
Less amount covered into the Treasury as miscellaneous receipts
$106,784,734. 51
25,631. 68
365,029.92
1,161,488.18
1,933,449.58
2,958,906.67
3,904,017.10
4,590,199.06
14,928,721.09
11,125,631.58
213,803,089.51
Total liability to General Fund
120,587.824.02
1 The sum of $400,000 of this amount was deposited in July 1937.
»«*ayment of interest due June 30,1937, $13,803,089.61, deferred for 1 year under sec. 2 (d) of the act of
Dec. 21,1928.
Advances to reclamation fund.—Under the act of Congress approved
June 17, 1902 (32 Stat. 388), there was established in the Treasury a
special fund known as the reclamation fund, representing receipts from
the sale of public lands in certain States and Territories to .be used
for the construction of irrigation works for the reclamation of arid
lands. Pursuant to the act of June 25, 1910 (36 Stat. 835), the Secretary of the Treasury advanced to the reclamation fund from the General Fund of the Treasury $20,000,000. The act of June 12, 1917 (40
Stat. 149), provided for the reimbursement of the money so advanced
through the transfer of $1,000,000 annuallj^ from the reclamation
fund to the General Fund of the Treasury beginning July 1, 1920, and
continuing until full reimbursement is made. Beginning with the
fiscal year 1921 there has been returned to the General Fund $1,000,000
annually, making a total of $10,000,000 for the 10 years ended with
the fiscal year 1930. The Deficiency Act of February 6, 1931, provided for a suspension of the annual payments for a period of 2 years;
the act of April 1, 1932, as amended by the act of March 3, 1933, and
the act of June 22, 1936, provided for a further extension until the
fiscal year beginning July 1, 1938.
The Deficiency Act approved March 4, 1931, appropriated an
additional advance of $5,000,000 to the reclamation fund from the
General Fund, all of which was advanced between April 28, 1931, and
November 30, 1931.
The following statement shows the status of the account as of
June 30, 1937:
larges:
Advances from the General Fund:
Under act of June 25, 1910
Under act of Mar. 4, 1931
Total
Less repayment of advances to June 30,1930 L .
Unreimbursed balance
»Installments for 1931-37 suspended.
....^.
$20,000,000
5,000,000
26,000,000
10,000,000
15,000,000
105
REPORT OF THE SECRETARY OF THE TREASURY
Division of Deposits
The Division of Deposits is charged with the administration of
matters pertaining to the designation and supervision of Government
depositaries and the deposit of Government funds in such depositaries.
The regulations of the Treasury governing the deposit of public funds
in depositaries are incorporated in Department Circulars Nos. 92
and 176, as amended.
The following statement shows the number and classes of depositaries maintained by the Treasury and the Government deposits
held by such depositaries on June 30, 1937:
Number of depositaries and amount of Government deposits held on June 30, 1937,
by class of depositaries
Amount
Depositaries
Federal Reserve banks (including branches)
_
Federal Reserve member bank depositaries:
To credit of Treasurer of the United States
To credit of other Government officers
Insular and Territorial depositaries (including Philippine treasury):
To credit of Treasurer of the United States
To credit of other Government oflQcers..
Foreign depositaries:
To credit of Treasurer of the United States
To credit of other Government oflBcers
Special depositaries
$92,808,302.45
9, 714,610.34
30, 628, 638.37
5,161,791.14
1, 551, 615.15
1,202, 099. 60
1, 934, 532. 71
649,459, 773.26
. Total
792,461,263. 02
1 In addition, 291 branch banks are carried on the depositary list of the Treasury under the designation
of the parent banks.
2 Includes 1,613 national banks and 1,070 State banks and trust companies, of which 1,309 held deposits
on June 30, 1937.
Approximately 1,489 changes and adjustments were effected within
the depositary system during the fiscal year 1937. These adjustments
are summarized in the following table:
Member
bank depositaries
Designated
Discontinued
Amounts for which qualified increased.
Amounts for which qualified decreased
43
45
253
•132
Special depositaries
173
711
128
4
One of the important functions of the regular depositary system of
the Treasury (which, aside from the Treasurer of the United States
in Washington, is comprised of Federal Reserve banks and branches.
Federal. Reserve member depositaries, insular and Territorial depositaries, including the Philippine treasury, and foreign depositaries) is
the acceptance of deposits made by Federal officers and others for
clearance into the various receipt accounts in the Treasury. Apart
from the pubhc debt receipts, which are received only at the Treasury
in Washington, or through the Federal Reserve banks and branches,
supplemented by the ^^special depositary'^ system (see Treasury
Department Circular No. 92, revised, dated Feb. 23, 1932) most of
the collections, including revenue and nonrevenue receipts and postal
revenues, are first received by Federal officers at various points in
the continental United States, and in the insular and Territorial
possessions. The existing policies and regulations of the Treasury
106
REPORT OF THE SECRETARY OF THE TREASURY
governing the deposit of such collections are set forth in Department
Circular No. 176, amended and supplemented, dated September 2,
1930. These definite policies and regulations were first incorporated
in Department Circular No. 176, dated December 31, 1919, which was
promulgated, in part, with a view to effecting a more complete
utilization of the facilities afforded by the Federal Reserve System
and for other purposes. These regulations also were predicated, to a
certain extent, upon the discontinuance of the subtreasury system.
This subject is covered in detail in the annual report of the Secretary
of the Treasury for the fiscal year 1920, pages 167 to 177, inclusive.
Further reference to the subject is contained in the annual report of
the Secretary of the Treasury for the fiscal year 1926, pages 109 to
120, inclusive.
One of the major changes initiated at that time was the provision
requiring that all checks, whether certified or uncertified, and whether
or not drawn on banks or trust companies located in the same city with
the depositor, should be forwarded for deposiit each day (unless specific
instructions for different procedure were given with the approval of
the Secretary of the Treasury) to the Federal Reserve bank of the
district in which the depositor's head office is located (or, in case the
head office is located in the same city with a branch Federal Reserve
bank, to such branch Federal Reserve bank). Cash receipts only
were to be deposited with national bank—now member bank—
depositaries.
This procedure worked with a reasonable degree of efficiency under
the conditions existing at that time and for several years thereafter,
principally because of the fact that coUectors of uiternal revenue,
collectors of customs, and other collectors of public moneys receiving
the greater percentage of the collections were located in Federal
Reserve bank or branch bank cities. As the activities of the Government broadened, however, and as receipts increased in volume and
variety, with a corresponding increase in the number of checks received,
the proceeds of which were to be cleared into the Treasury, it developed
that the deposit of all such checks with Federal Reserve banks and
branches in many instances resulted in deferring the availability of the
funds to the Treasury, created considerable duplication in the handling
of checks, caused much unnecessary paper work and correspondence,
and, in many instances, delayed to a considerable degree the accounting work of the collecting officers. In view of this situation, as indicated in the report of the Secretary of the Treasury for the fiscal year
1936, a general survey was initiated covering all Government departments and agencies to determine the possibility of improving the
deposit and collection procedure. As a direct result of this survey
many beneficial changes in the depositary and collection procedure
were authorized. The following table, arranged by classes of deposits,
indicates the number of points at which such adjustments have been
authorized as of June 30, 1937:
Internal revenue
_
Customs
War Department-.
_
Home Owners' Loan Corporation
Federal Housing Administration
United States courts (including United States marshals)
Resettlement Administration (homestead projects)
_
Federall Emergency Administration of Public Works (housing projects)...
Post OflQce Department (United Statessavings bonds)
Post Ofl3ce Department (postal savings)
Total
,...
_
_
79
87
73
103
37
132
5
11
336
387
1,249
REPORT OF THE SECRETARY OF THE TREASURY
107
One of the outstanding benefits resulting from these adjustments is
the earlier availability of the funds to the Treasury; for example, total
deposits, chiefly in the form of checks, clearing through general
member bank depositaries during the fiscal year 1937 were over
$1,000,000,000 in excess of the deposits clearing through the same
depositaries during the fiscal year 1934. Experience has demonstrated that, to the extent this procedure has been adopted, it is
possible to reduce by from 2 to 5 days the average collection time of
checks. In addition, this procedure has resulted in the elimination of
from 2 to 4 unnecessary handling operations, involving hundreds of
thousands of items per month, has eliminated risk of loss in mail, and
has reduced materially the number of uncollectible checks through the
more prompt presentation of checks for payment at the banks upon
which drawn.
This survey mil be continued during the ensuing fiscal year and
many additional adjustments are anticipated.
On September 15, 1936, the Treasury issued Department Circular
No. 568, which prescribes regulations governing Federal savings and
loan associations and Federal credit unions as fiscal agents of the
United States. On the same day the Secretary of the Treasury designated for employment as fiscal agents, for the purpose of taking applications solely from their own members and forwarding remittances for,
and making delivery of. United States savings bonds, all Federal
savings and loan associations and Federal credit unions having 500 or
more members. On June 30, 1937, 249 Federal savings and loan
associations and 32 Federal credit unions were reported as being
ehgible to qualify as fiscal agents; and on that date 150 Federal savings
and loan associations and 1 Federal credit union qualified as fiscal
agents under the provisions of Department Circular No. 568.
Federal savings and loan associations also were designated on
September 15, 1936, for the purpose of collecting delinquent accounts
arising out of insurance and loan transactions of the Administrator
under title I of the National Housing Act, and making investigations
and rendering reports respecting the said delinquencies as may be
directed from time to time by the Administrator. Federal savings
and loan associations having a membership of less than 500 are also
eligible for this designation. As of June 30, 1937, 863 such associations were reported as eligible for this qualification, and 57 qualified
under the provisions of Department Circular No. 568. In addition,
the associations having 500 or more members, qualified to act as fiscal
agents in connection with United States savings bonds, also qualified
as fiscal agents under this designation.
Department Circular No. 568 and the designations of fiscal agents
are found as exhibits 19 to 21 on pages 256 to 258.
Section of Surety Bonds
On June 30, 1937, there were 67 domestic companies holding certificates of authority from the Secretary of the Treasury under the act of
Congress approved August 13, 1894, as amended by the act approved
March 23, 1910, qualifying them as sole sureties on recognizances,
stipulations, bonds, and undertakings permitted or required by the
laws of the United States, to be given with one or more sureties.
There were also six branches of foreign companies holdiug certificates
of authority authorizing them to act only as reinsurers on bonds in
108
REPORT OF THE SECRETARY OF THE TREASURY
favor of the United States. During the year one certificate of authority of a domestic company, which had voluntarily ceased to write new
business, was revoked; one certificate of authority was issued to a
branch of a foreign company authorizing it to act as a reinsurer on
Federal bonds; and three certificates of authority were issued to domestic companies to qualify as sole sureties on bonds in favor of the
United States.
Division of Bookkeeping and Warrants
The Division of Bookkeeping and Warrants, in the name of the
Secretary of the Treasury, issues all warrants on the Treasurer of
the United States, and under section 10 of the act of July 31, 1894
(U. S. C , title 5, sec. 255), keeps the official accounts relating to the
receipt, appropriation, and expenditure of the public moneys, covering
all departments and establishments of the Government. This Division makes analyses of acts of Congress carrying appropriations and
maintains the necessary appropriation accounts on its ledgers; it issues
warrants for placing disbursing funds to the credit of disbursing
officers, for the payment by the Treasury of claims settled by the
General Accounting Office, and for covering into the Treasury the
revenues and receipts of the Government. I t handles the work involved in the Secretary's special deposit accounts, including alien
property trusts and offers in compromise, handles the issuance of
duplicate checks and outstanding liabihty claims; compiles, for submission to the Bureau of the Budget, the estimates of appropriations
for the service of the Treasury; maintains budgetary accounts relating
to apportionments and obligations of funds pertaining to all departments and establishments of the Government, including governmental
corporations operating on public funds, pursuant to the provisions
of the Executive order of July 27, 1933. ^
In addition to the above this Division compiles and publishes an
annual digest of the appropriations made by Congress and an annual
combined statement of the receipts, expenditures, and unexpended
balances under each appropriation account.
Statements of the receipts and expenditures of the Government for
the fiscal year 1937, compiled by this Division, are shown as tables
1 and 2, pages 298 to 319 of this report.
Division of Disbursement
The Division of Disbursement, organized December 16, 1933, under
the provisions of section 4 of Executive Order No. 6166, has absorbed
the disbursing functions formerly exercised by the departments and
estabhshments of the Government located in Washington, D. C ,
including the emergency as well as the regular Government activities,
with the exception of the Post Office Department, the Panama Canal,
and that portion of the War and Navy Departments relating to
national defense.
At the close of the fiscal year 1937, the disbursing functions of 535
field offices had been transferred and consolidated in tbe regional
branches of the Division of Disbursement.
During the year, 3 branches of Treasury-State disbursing offices
for the disbursement of emergency funds were established, and 32
branch offices were discontinued and their functions transferred to
the Treasury-State disbursing offices, 55 of which were maintained
throughout the year.
REPORT OF THE SECRETARY OF THE TREASURY
109
During the first months of the fiscal year 1937, payments to veterans
under the Adjusted Compensation Payment Act of 1936 were completed to the extent that the 371 employees, carried over from 1936
for that duty, were released or reassigned to duty in connection with
disbursements under the agricultural conservation program.
On June 30, 1937, the total personnel of the Division, including
regular, temporary, and emergency employees, was 3,631, and in
addition there were 128 employees of the Agricultural Adjustment
Administration detailed to offices of the Division to assist in soil
conservation payments for that agency, which aggregated 5,295,894
during the year.
The offices of the Division made 112,012,453 payments by checks
and made cash payments in 1,349,790 instances. These payments
were supported in the disbursing accounts by 10,891,023 vouchers.
The Division also received, deposited, and accounted for 2,262,299
collection items.
DIVISION OF APPOINTMENTS
Number of employees in the Treasury Department
There were 21,238 employees in the departmental service of the
Treasury on June 30, 1937, a net increase of 161 for the fiscal year.
The principal increases occurred in the Bureau of Internal Revenue
and the Procurement Division, Branch of Supply. The principal
decrease occurred in the Division of Loans and Currency.
In the field service there were 63,037 employees on June 30, 1937,;
an increase of 2,659, compared with the number on June 30, 1936;'
The largest increase was in the Bureau of Internal Revenue. The
principal decrease occurred in connection with the emergency relief
program.
The number of employees in the departmental service of the Treasury,
classified according to bureaus and offices, at the end of each month,
from June 30, 1936, through June 30, 1937, is shown in table bb,
page 480 of this report. A comparison of the number of employees in
the departmental and field services of the Treasury on June 30, 1936,
and June 30, 1937, is contained in table 56, page 481.
Retirement of employees
During the fiscal year 1937, there were 494 persons retired from
the departmental and field, services of the Treasury Department.
Under the provisions of the Civil Service Retirement Act, as amended,
and of section 204 of the Economy Act of June 30, 1932, 221 persons
were retired from the departmental service of the Treasury Department, 16 of whom were retired at their own option before the compulsory retirement age; and 273 were retired from the field service,
21 at their own option.
As of June 30, 1937, six employees in the departmental service and
four in the field service, who had reached the retirement age, were
retained under the authority of the President provided in section 204
of the Economy Act.
,
Table 57, page 481, shows the number of persons retired and the
number who have passed the compulsory retirement age but retained
in the departmental and field services of the Treasury from August 20,
1920, to June 30, 1937.
16109—38
9
110
REPORT OF T H E SECRETARY OF T H E TREASURY
BUDGET AND IMPROVEMENT COMMITTEE
The Budget and Improvement Committee is responsible, under the
direction of the Budget officer, for the preparation and examination of
estimates of Treasury appropriations and for the improvement of
administrative methods and procedure within the Treasury Department. In addition to examining all estimates the committee makes
inquiries as to the reserves which may be set up under the various
appropriations and considers other matters affecting expenditures of
the Department.
Subsequent to the submission of the regular estimates of appropriations for the fiscal year 1938, supplemental and deficiency estimates aggregating $134,972,836.96 were received. After examination
by the Budget officer, with the assistance of the committee, these
estimates were reduced to $130,969,336.96 and submitted to the
Acting Director of the Bureau of the Budget.
Reserves amounting to $1,684,480 had been set aside from ordinary
appropriations for the fiscal year 1937 by the Acting Director of the
Bureau of the Budget. During the year, reserves amounting to
$620,539 were released by the Acting Director, after approval of the
committee, and additional reserves of $262,488 were set up, leaving
$1,326,429 in reserve at the end of the year. Of the appropriations
made to the Treasury Department for the fiscal year 1938, the Acting
Director set aside $17,003,813 in reserve.
For the fiscal year 1939, heads of Treasury bureaus and offices submitted estimates for annual, permanent, and indefinite appropriations
aggregating $2,376,556,582. After examination by the Budget and
Improvement Committee, items aggregating $2,418,551 were disapproved in estimates for annual appropriations. Of the $2,374,138,031 approved and submitted to the Acting Director of the Bureau of
the Budget, $784,503,559 was for annual appropriations, including
$510,000,000 for the old-age reserve account; $7,137,672 for permanent
and indefinite appropriations and special funds; $18,981,800 for trust
funds; $976,000,000 for interest on the public debt; and $587,515,000
for public debt retirements chargeable against ordinary receipts.
COAST GUARD
The following is a summary of the principal operations of the
Coast Guard for the fiscal year 1937, including comparisons with the
preceding year:
Instances of lives saved and vessels assisted
Value of vessels assisted (including cargoes)..
Persons on board vessels assisted
i....
Lives saved or persons.rescued from peril
Persons in distress cared for
Instances of miscellaneous assistance
Vessels boarded and papers examined
".
Vessels seized
.
Vessels reported
Fines and penalties incurred by vessels reported
Vessels warned for violations of law...
Derelicts and other obstructions to navigation removed
or destroyed
Value of derelicts and other obstructions recovered
Regattas and marine parades patrolled
Persons examined for certifiicates as lifeboat men
Increase (-1-) or
decrease (—)
1936
1937
8,138
15,426,470
37,653
7,510
1,439
6,608
36, 500
34
1,030
$209, 356
760
8,140
18,004, 465
37, 591
7,631
761
6,930
40,645
18
3,124
$622,916
985
+2
+$32,578,996
. +38
+121
-678
-678
+5,146
-16
+2,094
+$313,659
+226
263
$67, 410
290
2,341
230
$1,525
-33
-$66, 885
+96
+1,576
REPORT OF T H E SECRETARY OF T H E TREASURY
H I
The number of persons saved or rescued from peril during the year
was the largest in the history of the Service, exceeding by 121 the
previous record year of 1936. The number of regattas and marine
parades patrolled exceeded any other year.
A Coast Guard rehef force of 142 officers and 1,706 enhsted men
from units on the Atlantic, Gulf, and Great Lakes coasts was dispatched to assist the American Red Cross in the Ohio-Mississippi
Valley flood. This was the largest relief expedition in the history of
the Service. Operations extended from January 19 to March 11,
1937, and involved 351 boats of all types, 11 Coast Guard airplanes,
12 portable radio sets, and 12 communication trucks (mobile radio
stations), the latter forming part of an emergency radio network of
244 radio stations, including amateurs. The relief force, besides
rescuing 839 persons from peril, transported 67,613 refugees to safety,
afforded transportation to thousands of Red Cross officials and relief
workers, saved 1,993 head of hvestock, carried mails, towed disabled
boats and floating buildings to safety, helped to restore telephone
and telegraph service, aided in preventing looting, and otherwise
extended all aid within its power to be of assistance.
One Coast Guard cutter, while on the annual cadet practice cruise
to European waters, was detached from such duty, and, in cooperation with naval forces, assisted in the evacuation of refugees along the
northern coast of Spain. The cutter was engaged upon this mission
from July 24 to October 1,. 1936, during part of which time she was
used as a floating embassy for the American Ambassador and his
staff and as a communication center for messages between Washington
and the embassy staff in Spain.
The Coast Guard assisted in the transportation of mail and troops
and in migratory bird surveys, furnished facilities for a floating court
in Alaska, furnished details for guarding Government moneys, transported supphes for other Government departments in emergencies,
and in other ways served the pubhc interests where its resources and
personnel were in a position to assist any branch of the Federal
establishment.
Work relief projects, comprising repair, renewal, and improvement of telephone lines; the reconditioning, modernizing, and construction of shore facilities at various Coast Guard stations; the
construction of wooden boats; and dredging at Government Island,
Alameda, Calif., were carried on from an allocation of $4,850,950
under the Emergency Relief Appropriation Act of 1935. The highest
peak of the employment for the entire program was reached on July
25, 1936, when 1,105 workers were employed on the various projects.
The telephone line projects were completed on June 30, 1937, and theother projects will be completed before the end of the fiscal year 1938.
Protection to navigation
International service of ice observation and ice patrol.—Two cutters
and an oceanographic vessel were assigned to the International
Service of Ice Observation and Ice Patrol in the North Atlantic
during the season of 1937. Ice observation was begun on February
3, 1937, due to the early appearance of icebergs, and on AprU 15 the
regular ice patrol was inaugurated in the Grand Banks region.
Throughout the ice-menace season, which was terminated on June 11,
112.
REPORT OF THE SECRETARY OF THE TREASURY
the two ice patrol cutters based temporarily at Halifax, Nova Scotia,
and the oceanographic vessel at St. John's, Newfoundland. The two
cutters made 17 cruises, maintaining a continuous patrol in the icemenace area and affording protection and ice warning service to
trans-Atlantic shipping. The oceanographic vessel carried out a
program of observations dealing primarily with the direction and rate
of flow of the ice-bearing currents. The number of icebergs flowing
south of the forty-eighth parallel, estimated at 645, was larger than
normal. Upon the conclusion of the ice patrol, the oceanographic
vessel made a post-season cruise from June 19 to July 13 in the
waters between Labrador and Greeuland in furtherance of studies
bearing upon currents and ice conditions.
Winter cruising.—During the season of severe weather on the North
Atlantic coast—normally from December 1 to March 31—13 Coast
Guard cutters were designated, pursuant to Executive order, to render
aid to marine commerce during the 1936-37 season. These cutters
cruised 65,931 miles; afforded assistance to 57 vessels, whose value,
including cargoes, amounted to $8,769,375; and destroyed 9 derelicts
which were a menace to navigation. In the interest of enforcement
of Federal maritime laws, 121 vessels were boarded and examined.
Patrol in northern waters.—Tbe regular annual patrol of the waters
of the North Pacific Ocean, Bering Sea, and southeastern Alaska for
the season of 1936, in progress at the beginning of the fiscal year 1937,
was conducted by 10 Coast Guard vessels. These vessels in the performance of their duties cruised 59,327 miles, assisted 6 vessels,
boarded 45 vessels, afforded medical and dental aid to 1,531 persons,
and transported 306 persons. Eleven vessels were assigned to the
patrol for the season of 1937, which was in progress on June 30, 1937.
: Anchorage and movements of vessels.—On June 30, 1937, nine Coast
Guard officers were serving as captains of the port in ports where
Federal rules and regulations, promulgated by the Secretary of
War and the Secretary of Commerce, are in effect governing the anchorage and movements of vessels in the interest of safe navigation,
expeditious and orderly movement of marine commerce, and efficient
port administration. At the larger ports harbor craft were detailed
to this duty and also in connection with the supervision of the lachng
of explosives. Supervision w^as extended to one additional port during the year. In localities where the continual presence of an enforcement officer was not necessary, periodic inspections were made by
Coast Guard vessels regularly operating in the area.
Enforcement of customs and other laws
Throughout the year the Coast Guard carried on its customary
duties in connection with the enforcement of the customs, navigation, and motorboat laws, and in the enforcement of all Federal laws
upon the high seas and in navigable waters to which the jurisdiction
of the Coast Guard extends, in collaboration with other departments
of. the Government. Vessels were detailed to various ports to assist
the customs authorities in boarding incoming vessels and in carrying
on other customs duties, and officers of the Service were assigned to
American whaling vessels and stations in the enforcement of the
Whaling Treaty Act.
In a number of cases, the Coast Guard, by the presence of its vessels
or through the intercession of its services upon the request of other
REPORT OF THE SECRETARY OF T H E TREASURY
113
Federal agencies, maintained order along the coast in difficulties which
had arisen among fishermen and aboard ship.
The Coast Guard has enjoyed excellent cooperation from the
Royal Canadian Mounted Police in law enforcement matters of mutual
interest to the two services.
Smuggling.—By direction of the Secretary of the Treasury, the
commanders of Coast Guard, divisions acted as coordinators of
Treasury Department law enforcement activities with respect. to
the prevention and detection of the smuggling of liquor and narcotics
within the limits of their respective divisions.
The Hawaiian Islands, at the crossroads of the Pacific Ocean for
vessels plying between the Orient and the United States, constituted a
special law enforcement problem particularly as regards narcotics,
making necessary the establishment of a Hawaiian Coast Guard
section, the commander of which acts as Treasury law enforcement
coordinator.
The concerted efforts of the coordinated law enforcement agencies
of the Treasury Department have been reflected in the decrease in
attempts at smuggling of liquor by hovering vessels. A constant
and vigilant patrol and system of trailing were maintained along the
coast in the suppression of the smuggling of liquor and narcotics,
approximately 2,240 vessels having been trailed or picketed throughout the year. Valuable assistance in law enforcement was furnished
by the Coast Guard Intelligence Division to the Treasury Depart?
ment and other agencies.
A summary of seizures, etc., during the year is presented in the
following table:
Summary of Coast Guard seizures, etc., during the fiscal year 1937
Coast
Guard
Vessels seizedArrests
Vehicles seized
Illicit distilleries and equipment seized or reported
Aliens apprehended..
Estimated value of seizures:
Contraband
Equipment
Estimated internal revenue tax on contraband seized.
$65,159
$41,800
$84, 224
Joint seizures
(Coast
Guard and
other Treasury agencies)
Total
7
267
76
701
10
18
273
78
701
12
$3, 780
$63,437
$4, 742
$68,939
$105,237
Northern Pacific halibut fishery.—In the enforcement of the Northern Pacific Halibut Act and the International Convention for.the
Preservation of the Halibut Fisheries of the Northern Pacific Ocean,
Coast Guard vessels made 19 cruises to the fishing areas, and, seized
four vessels—three American and one foreign—for violations of the
act.
Aviation
On June 30, 1937, air stations were in commission at Salem, Mass.;
Cape May, N. J.; Miami, Fla.; St. Petersburg, Fla.; Biloxi, Miss.;
Port Angeles, Wash.; Charleston, S. C ; and San Diego, Calif.; the
114
REPORT OF THE SECRETARY OF THE TREASURY
latter two having been completed during the fiscal year. An air
patrol detachment is stationed at El Paso, Tex., and one air station
is now under construction at New York, N . Y.
The use of aircraft for Coast Guard duties along the coast and
land borders, iii flood rescue operations and in cooperating with other
Treasury agencies in law enforcement work, comprises a field of great
activity and of increasing importance.
A summary of operations during the year follows:
Number of
flights
3,842 Persons warned of impending danger
Miles cruised
780,645 Obstructions to navigation, reported
Areas searched (square miles)
5,862,618 Instances of assistance to other GovernEmergency medical cases transported
185
ment departments^Persons transported from disabled vessels.
11 Smuggling vessels located
Persons otherwise transported and asSmuggling planes located
sisted.
948 Illicit stills located
Vessels warned of impending danger
168
691
57
428
37
2
360
Communications
Telephone and telegraph lines arid cables.—On June 30, 1937, the
Coast Guard coastal telephone system comprised 1,602 miles of pole
line, 3,000 miles of open aerial circuits, 50 miles of aerial and underground cables, and 642 miles of submarine cables. Some of these
lines are connected with central offices of commercial telephone systems, thus furnishing communication service to units of the Coast
Guard, Navy radio compass stations, Weather Bureau offices, and
lighthouses in various coastal locations.
Six new lines which were under construction last year in the Chicago
division were completed. Reconstruction of telephone lines, a's provided in the emergency relief program of 1935-37, was also completed.
Replacement of cables was made only in cases of absolute necessity
due to limited funds. Progress was made in research work to improve the physical and electrical characteristics of submarine cable.
Radio.—The Engineering Section continued the research and
development work on various engineering problems, notably in connection with transmitting and receiving antennas, but a great amount
of work remains to be completed covering the antenna problems.
Further installation was made of radio receiving equipment on
motor lifeboats and of radio transmitting and receiving equipment at
Coast Guard stations as equipment became available. The results
obtained demonstrate the need of making such installations at all
stations.
The radio station at Fort Hunt, Va., has been designated as Washington Radio, and its services have been extended to provide fixed
communication service to four Coast Guard divisions. This station
has also provided service during several emergencies.
Studies were continued for the formulation of a basic plan for handling emergency communications in flood work. Recent disasters
in the Ohio-Mississippi Valley demonstrated such need. Cooperation in communication problems was continued with other Government departments and with other branches of the Treasury Department.
An officer of the Coast Guard continued to represent the Treasury
Department on the Interdepartmental Radio Advisory Committee.
REPORT OF THE SECRETARY OF THE TREASURY
115
Equipment
Floating equipment.—On June 30, 1937, the following floating
equipment was in commission in the Coast Guard: Cruising cutters,
37; 165-foot patrol boats, 17; 125-foot patrol boats, 27; 100-foot patrol
boats, 4; 80-foot patrol boats, 5; 78-foot patrol boats, 6; 75-foot patrol
boats, 52; 72-foot patrol boats, 2; harbor tugs, 13; harbor launches, 40;
special craft, 7; picket boats, 85; and misceUaneous patrol boats
exceeding 40 feet in length, 30. This floating equipment does not
include the primarily life-saving boats assigned to Coast Guard
stations and vessels.
During the year a number of cutters and smaUer vessels were sold
or transferred to other Government departments.
The facilities of the Coast Guard Depot, Curtis Bay, Md., navy
yards, and private contractors were used in the repair and reconditioning of floating units.
Six 327-foot cutters were placed in commission, thus completing the
construction program of seven such cutters authorized in 1933. Eight
harbor craft and seven patrol boats, part of a program of work relief
projects for the construction of wooden boats, were completed, and
two harbor craft and six patrol boats were in course of construction
on June 30, 1937.
Small boats.—New standard *:20-foot and 26-foot 6-inch motor
launches were designed and constructed. Improvements were made
in the design of the standard 25-foot 6-inch pulling surfboats and also
in the standard T R motor lifeboat. Further studies were made
toward simplification of the numerous construction details of the
motor lifeboat which will result in reduced cost of construction and
less weight. Progress was made in the development of a radiator
cooling system for the power plant of the motor surfboat and for
installation in the standard 20-foot motor launches and other craft.
The standard Monomoy pulling surfboat was redesigned for improved
rowing and steering action, and one boat was built for test purposes.
Experimental investigations and testing in the related field of special
metals, woods, marine equipment, fittings and outfit, and other subjects involved in the matters of new construction and upkeep of
standard small boats were continued.
In addition, to the small boats constructed at the repair depot, 21
cabin picket boats and 7 shallow-draft speedboats were built by
private contractors.
Ordnance
All Lyle guns in the Service, used for line-throwing purposes, were
equi]3ped with the new firing attachment, using the .32-caliber blank
cartridge instead of the old friction primer, and the relining of these
guns was practically completed by the end of the fiscal year. During
the year tests were conducted, using the new rewinding machine and
no. 7 hard laid flax line with the Lyle gun and the 6-pounder gun.
The new equipment was issued to the cutters most recently completed
for use with 6-pounder guns. Experiments are being conducted with
the rewinding machine, hard laid flax line, and canister with the view
to their possible use with the Lyle guns at Coast Guard stations,
instead of using the faking box and loose laid line.
116
REPORT OF THE SECRETARY OF THE TREASURY
The new ordnance building at the Coast Guard Depot, Curtis Bay,
Md., replacing the one destroyed by fire, will facilitate training for
armorers and provide means for carrying on a greater amount of repair
work on small arms.
The usual small arms target practice and gunnery exercises were
carried on during the year, and the personnel of the Coast Guard
entered national small arms competitions, making a creditable showing.
Plans were completed for including long-range battle practice and day
spotting practice in the program of gunnery training. The training
of civilian employees of the Treasury Department in the use of small
arms was continued.
The continued cooperation of the Army, Navy, and Marine Corps
has been most helpful and valuable in furtherance of the efficiency of
the Service in small arms, gunnery, and ordnance.
Academy, stations, bases, repair depot, etc.
Coast Guard Academy.—During the fiscal year 50 cadets were appointed to the Academy and 33 resigned; there were 96 cadets under
instruction at the end of the year. No cadets were graduated due to
the change in the graduation date from May to September. The 1937
cadet practice cruise, which began on June 5, 1937, included United
States and northern European ports in its itinerary. Pursuant to the
act of April 16, 1937, an advisory committee of distinguished educators
was appointed by the Secretary of the Treasury.
Stations and bases.-—On June 30, 1937, 225 Coast Guard stations
were in an active status, and three shore bases were in commission.
Rebuilding, repairs, alterations, additions, and improvements were
completed or undertaken at a large number of shore units. Arrangements are in progress for rebuilding the Coquille River Coast Guard
Station, Oreg., which was destroyed by fire. Four newly established .
stations were placed in commission during the year.
Repair Depot, Curtis Bay, Md.—During the year a number of 125foot patrol boats were reengined aiid completely overhauled and eight
75-foot patrol boats were reconditioned. The usual routine maintenance of vessels stationed in the West Indies and in the vicinity of
Baltimore was performed at the depot. The boat-building plant constructed 133 boats of various types, 15 of which were motor lifeboats,
and also built a large number of lifeboat and surfboat launching carriages. Considerable repair work was accomplished on boats, many
of which were damaged during rescue operations in the Ohio-Mississippi Valley flood, and also a number of old-type motor lifeboats were
converted to the present-day type.
Engine school and repair base, Norfolk, Va.—During the year, 62
enlisted men completed courses involving instruction in the repair,
operation, and maintenance of internal-combustion marine and aviation engines and in lathe practice. The students reconditioned gasohne marine engines and their parts for further use by the Coast,Guard,
and rebuilt parts of electrical equipment for engines, including starting
motors, generators, magnetos, and distributors. A complete steel aircraft engine test stand was manufactured and installed by the unit;
also a model T4M1 Martin Bomber was procured from the Naval Air
Station, Norfolk, assembled, and fitted with a reconcJitioned Pratt &
Whitney airplane engine, and is used for detection of engine troubles
for ground instruction purposes.
REPORT OF THE SECRETARY OF THE TREASURY
117
Experimental work with a marine gasoline engine, a Diesel auxiliary
engine, and lubricating oil treatment was carried on in connection
with the instruction courses.
Personnel
On June 30, 1937, there were on the active list of the Coast Guard
484 regular and 5 temporary commissioned officers, 96 cadets, 153
chief warrant officers, 407 regular warrant officers, 144 temporary
warrant officers (of whom 143 were on duty with the War Department,
under orders contained in Executive Order No. 6169), 8,890 enlisted
men, and 364 civihan employees in the field, of whom 272 were per
diem civilian employees at the Coast Guard Depot, Curtis Bay, Md.
There were also 73 emergency employees (P. W. A. and W. P. A.)
engaged in Coast Guard projects.
An officer of the Coast Guard has acted during the year as a member
of the Technical Advisory Committee on Safety of Life at Sea, Senate
Committee on Commerce; and Coast Guard officers have served as
members of the Federal marine casualty investigation boards.
Recruiting.—Six main recruiting stations were in operation during
: the .entire fiscal year, and two main recruiting stations (Boston and
Detroit) were in operation until October 31, 1936. Recruiting was
suspended during April and May, and resumed again in June. During
the year there were 6,190 applicants of which 947 were enlisted, 1,383
rejected for physical disability, and 3,860 rejected for other causes.
Loss in personnel, other than through expiration of enhstments, was
low, and 85 percent of the men eligible to reenlist did so upon the
expiration of enlistments.
Training.—Postgraduate instruction for commissioned officers was
provided as follows: Three in resident law, 19 in extension law, 2 in
marine engineering, and 2 in radio engineering. Several other officers
w^ere assigned to various universities for summer courses.
Through the institute at New London, Conn., the Coast Guard has
provided rating and training courses for enlisted men to fit them for
advancement. Resident schools within the Service have provided
training in radio, small arms maintenance, gasoline and Diesel engine
repairs and operation, and training for yeomen. From time to time
throughout the year men have been assigned to schools of the Army
and Navy for instruction not available within the Coast Guard, and a
large number of personnel has completed the Treasury law enforcement courses.
Engineering competition.—The regular engineering competition was
continued to promote a spirit of friendly rivalry and maintain the
personnel and material in a high state of efficiency and readiness.
Twenty-eight cruising cutters and 53 patrol boats took part in the
competition during the year.
Awards of lifesaving medals
The Secretary of the Treasury, under the provisions of law, awarded
during the year 14 silver lifesaving medals of honor in recognition of
bravery exhibited in the rescue or attempted rescue of persons from
drowning in waters over which the United States has jurisdiction or
upon an American vessel.
118
REPORT OF THE SECRETARY OF THE TREASURY
International conferences
Four representatives of the Coast Guard attended the International
Lifeboat Conference at Gothenburg, Sweden, in July 1936, and made
studies of the means employed in the several European countries for
the saving of life from shipwreck. The results of the studies made
valuable and helpful information available to the Coast Guard, and
indiqated a comparatively high state of efficiency in the equipment
furnished Coast. Guard stations, thC: system of communication provided for boats and stations, and of the general management of the
United States service,
A Coast Guard officer served as technical adviser to the American
delegation to the International Conference on Whaling held at London,
Englaind, on May 24 to June 8, 1937. The conference had for its purpose the adoption of methods among the interested nations for the
conservation of whales.
Reorganization
With the purpose of increasing the efficiency of Coast Guard stations
through consolidations and eliminations, studies were made of each
station along the. Middle Atlantic and North Atlantic coasts. As
a result of this survey, which will be extended to the remaining sections
of the coast, arrangements were made for putting approximately 40
stations out of commission, their duties and fields of operation to be
merged with adjacent units. Changed conditions with respect to
marine commerce and activities, modern and improved Coast Guard
equipment and facilities, and improved highways along the coast,
built since many of the stations were originally established, were
factors which entered into the survey.
Under the order of April 1, 1937, the areas of field work of the civil
engineers were changed to correspond with the prescribed division
limits, and civil engineers were placed on the staff of the respective
division commanders. This reorganization will provide for coordination and better administration in the prosecution of the construction
and repair projects throughout the Service.
Legislation and Executive order
Various laws affecting the administration and organization of the
Coast Guard were enacted by the Congress during the fiscal year.
The act of April 16, 1937, authorized the establishment of a permanent instruction staff at the Coast Guard Academy, and provided
for the appointment of a board of visitors composed of Members of
Congress, and of an advisory committee of distinguished educators.
The act of June 15, 1937, authorized the Secretary of the Treasury
to acquire a site and to establish a Coast. Guard air station at the San
Francisco Airport, Calif.
The act of June 28, 1937, carried into effect the provisions of the
convention of January 29, 1937, between the United States and
Canada for the preservation of the northern Pacific halibut fi,shery.
The provisions of this convention and act are to be enforced by the
Coast Guard, the Customs Service, and the Bureau of Fisheries.
The Secretary of the Treasury was authorized to establish Coast
Guard stations in the following localities: On Lake Pontchartrain,
REPORT OF THE SECRETARY OF THE TREASURY
119
La., and at or near Pass-a-Grille, Fla., acts of May 18, 1937; at or
near Tybee Island, Ga., act of May 25, 1937; on Schoodic Peninsula
and at or near Isle au Haut, Maine, act of June 15, 1937; and at or
near Menominee and at or near Manistique, Mich., acts of June 28,
1937.
An Executive order dated December 21, 1936, provides for assistance by the Coast Guard in ice breaking operations in channels and
harbors.
Funds available, obligations, and balances
The following table shows the amounts appropriated for the Coast
Guard for the fiscal year 1937, including deficiency appropriations
and the available balances of appropriations from the previous year,
and additional funds made available from funds appropriated under
the National Industrial Recovery Act and the Emergency Relief
Appropriation Act of 1935. The amounts of obligations and unobligated balances are also shown.
Available fundSt obligations, and unobligated balances for the fiscal year 1937
Amount
available
Appropriations:
Salaries, Office of Coast Guard, 1937
Pay and allowances, 1937
Fuel and water, 1937
Outfits, 1937
Rebuilding and repairing stations, etc., 1937
Communication lines, 1937
Civilian employees, 1937
Contingent expenses, 1937.
Repairs to vessels, 1937
Repairs to vessels, 1936 and 1937
Repairs to vessels, 1937 and 1938.
Outfits, 1936 and 1937
Outfits, 1937 and 1938
Rebuilding and repairing stations, etc., 1936-38
Rebuilding and repairing stations, etc., 1937-38
Communication lines, 1937 and 1938
Additional airplanes, 1937 and 1938
Coast Guard Academy
Additional vessels
Total..
Other available funds:
National Industrial Recovery, Treasury, Coast
Guard, 1933-39
Public Works Administration, Treasury, Coast
Guard, 1937
Emergency Relief, Treasury, Coast Guard, 1935
and 1937
TotaL
Graiid total
Amount
obligated
$387,375
$389,240
17, 566. 468 17, 382, 558
1 414. 460 1, 295,198
1,400,000
1, 369,372
292,600
287, 256
138,120
133,938
201, 760
198,856
205,000
203,557
1,800,000
1, 788, 510
175, 000
174,870
50,000
20,000
70,000
66,013
24,160
310, 700
182, 272
147,600
40,000
697, 50.0
684, 729
1,684
117, 526
117, 618
26,041.698
24, 292,108
478,386
401,034
719,372
719,372
Transferred
1 $2,000
2,000
a 30,000
Unobligated
balance
$1,865
181. 900
119, 262
30,628
5, 244 •
4,182
2,904
1,443
11,490
130
30,000
3,987
24,160
128. 428
147,614.
40.000
12, 771
1,684
8
747,690
47,362
1,672, 272
1,645,449
2,870,030
2, 765,855
30,000
74,175
27,911,728
27,067,963
32,000
821,765
26,823
1 Transferred to Division of Disbursement.
* Transferred to Public Buildings Branch, Procurement Division, Treasury Department.
BUREAU OF THE COMPTROLLER OF THE CURRENCY i
The Bureau of the Comptroller of the Currency is responsible for the.
execution of all laws relating to the supervision of national banking
associations and all banks and building and loan associations in the
District of Columbia. The Bureau is also responsible for the liquida1 More detailed information concerning the Bureau of the Comptroller of the Currency is contained in the
annual report of the Comptroller.
120
REPORT OF THE SECRETARY OF T H E TREASURY
tion of suspended national banks placed in charge of receivers. Under
the Emergency Banking Act of March 9, 1933, the Comptroher of the
Currency is required to approve the issuance and retirement of preferred stock of national banking associations. Other duties include
those incident to the formation and chartering of new national banking
associations, the establishment of branch banks, the consolidation of
banks, and the conversion of State banks into national banks.
Changes in the condition of active national banks
The total assets of the 5,299 active national banks on June 30, 1937,
amounted to $30,337,071,000, in comparison with assets of $29,702,839,000 reported by 5,374 active banks on June 30 of the previous
year. The deposits of the active banks in 1937 totaled $26,765,913,000,
which amount was exceeded on only one other call date in the history
of the national banking system, napaely, December 31, 1936, when
deposits aggregated $27,608,897,000. The loans and investments
totaled $20,935,182,000, or $689,215,000 more than on June 30, 1936.
The assets and liabilities of active national banks on the date of
each report from June 30, 1936, to June 30, 1937, are shown in the
following statement:
Abstract of reports of condition of active national banks on the date of each report
from June SO, 1936, to June SO, 1937
[In thousands of dollars]
J u n e 30,
1936 (5,374
banks)
Dec. 31,
1936 (5.331
banks)
M a r . 31,
1937 (5,311
J u n e 30,
1937 (5,299
banks)
7, 759,149
4,193
7, 072, 979
8, 267,328
3,882
7, 300,159
8, 469, 204
5, 368
6, 813, 206
8,807, 782
6,113
6,902, 621
1, 374, 385
1, 385, 395
1,352,019
4, 035, 261
4, 094, 490
4, 082, 065
81, 395
78, 717
101,869
641. £50
633, 095
636, 352
184,123
176, 506
175,104
. 3, 520,901 . 3,828,463 . 3,918,035
531, 694
618, 603
483, 510
1, 316, 674
3,903, 092
96, 441
636, 670
162, 409
4,152,889
444, 698
banks)
ASSETS
Loans and discounts (including rediscounts).
Overdrafts.-.:
U. S. Government securities, direct obligations
Securities guaranteed by U. S. Government as to interest
and principal.
Other bonds, stocks, securities, etc
Customers' liability account of acceptances
Banking house, furniture and fixtures
Other real estate owned
Reserve with Federal Reserve banks..
Cash-in vault
Balances with other banks and cash items in process of
collection. _
Cash items not in process of collection
Acceptances of other banks and bills of exchange or drafts
sold with endorsement...!.
Securities borrowed
Other assets..
Total
4, 328, 831
7,501
4, 634,115
9, 099
3,876, 071
7,166
. 3, 780, 382
8,215
6,083
388
154, 406
5, 779
273
134, 637
7,014
368
121,821
8, 265
229
112, 791
29, 702,839
31, 070, 441
30, 049,172
30, 337,071
11,665,872
12, 691, 606
12,132, 546
12, 430,183
7,074,544
2,108,486
829, 903
4,168,004
7, 281,494
2, 067, 872
658, 230
4, 450, 048
7, 401, 394
2,119, 798
378, 020
4,111,092
7, 469,842
2, 203,466
467,873
3, 790, 587
LIABILITIES
Demand deposits of individuals, partnerships, and corporations
Time deposits of individuals, partnerships, and corporations
State, county, and municipal deposits
.
,
U. S. Government and postal savings deposits
Deposits of other b a n k s . .
Certified and cashiers' checks, cash letters of credit, and
• travelers' checks outstanding, e t c . .
_
353, 644
469,147
372, 261
403,962
26,200,463
Total deposits
Secured by pledge of Loans and/or investments.... 2,604,698
Not secured by pledge of loans and/or investments. 23,695,855
27, 608,397
2,388,301
26,220,096
26,515,110
2,136, 482
24,378,628
26,765,913
2,246,824
24,619,089
BEPORT OF THB SECRETARY OF T H E TREASURY
121
Abstract of reports of condition of active national banks on the date of each report
from June 30, 1936, to June 30, 1557—Continued
[In thousands of dollars]
June 30,
1936 (5,374
banks)
Dec. 31,
1936 (6,331
banks)
586
2,425
447
835
2,588
62
751
12,155
112
676
',968
662
6,083
81, 865
5,779
83,126
7,014
104,243
8,265
99, 794
13, 794
388
47, 316
11, 504
273
47, 636
14,210
368
69,767
13,616
229
61,221
Mar. 31,
June 30,
1937 (5,311 1037 (5,299
banks)
banks)
LIABILITIES—continued
Agreements to repurchase'U. S. Government .or other
securities sold
Bills payable
:
Rediscounts
Obligations on industrial advances transferred to the
Federal Reserve banks...
Acceptances of other banks and bills of exchange or drafts
sold with endorsement-Acceptances executed for customers
Acceptances executed by other banks for account of reporting banks
Securities borrowed
Interest, taxes, and other expenses accrued and unpaid..
Dividends doclared but not yet payable andamounts set
aside for dividends not declared
Other liabilities
Capital stock (see memorandum below)...
Surplus
Undivided profits, net
Reserves for contingencies
.
Preferred stock retirement fund..
^
28, 043
155, 449
1, 691, 376
973, 393
346, 039
147, 219
7.702
28, 642
110, 570
1,598,815
1, 045, 582
368, 525
146, 467
10, 621
19. 442
118.687
1, 586, 072
1, 059, 257
385, 445
157, 929
8,700
27, 703
148,949
1, 582,131
1, 073,154
389, 233
155, 623
12, 024
o
Total
--
29, 702, 839 31, 070, 441 30, 049, 172 30,337, 071
-
Memorandum:
Par value of capital stock:
Class A preferred stock.
Class B preferred stock
Common stock
Total...
_
Loans and investments pledged to secure liabilities:
U. S. Government obligations, direct and fully guaranteed
Other bonds, stocks, and securities
Loans and discounts (excluding rediscounts)
Total.
Pledged:
Ajgainst U. S. Government and postal savings
deposits
Against State, county, and municipal deposits..
Against deposits of trust department
Against other deposits
Against borrowings.
With State authorities to qualify for the exercise
of fiduciary powers
For other purposes
Total
423, 228
20, 261
1, 254, 762
315, 771
19, 310
1, 289, 930
285. 826
18, 653
1, 287, 222
281,012
17, 965
1. 288,749
1, 698, 251
1,605,011
1, 591, 701
1, 687, 726
2, 352, 584
611.070
29, 950
2,129. 484
614, 369
-24,780
1,948,458
601,497
24,891
2, 063,195
674, 946
24, 768
2, 993,604
2, 768, 633
2, 574,846
2, 662, 909
888, 955
, 247,125
596, 785
152,612
3,347
732, 246
1, 308,843
46.^ 873
163, 794
3, 630.
463, 089
1, 317, 797
534,252
154, 933
11,508
627, 465
,365,989
515, 425
151.281
9, 606
87.838
16, 941
76, 344
17, 903
76, 015
17, 252
76, 266
16, 977
2,993. 604
2. 768,633
2, 674, 846
2,682,909
Summary of changes in membership in the national banking system
The authorized capital stock of the 5,322 national banks in existence
on June 30, 1937, consisted of common capital stock aggregating
$1,290,820,821, an increase during the year of $34,895,895, and preferred capital stock aggregating $301,511,042, a decrease during the
year of $191,740,880. The total net decrease of capital stock was
$156,844,985. ^ During the year charters were issued to 29 national
banking associations, of which 25 had common capital stock only,
aggregating $4,075,000, and the remaining 4 banks had an aggregate
of $165,000 common capital stock and $240,000 preferred capital stock.
Changes in the number and capital stock of national banks during
the fiscal year 1937 are shown in the following summary:
122
REPORT OF THE SECRETARY OF THE TREASURY
Organization, capital stock changes, and liquidations of national banks during the
fiscal year 1937
Number of
banks
Capital stock
Common
$4,075,000
166,000
Charters granted
Issues'Of preferred capital stock, 18 banks
Increases of common capital stock:
63 banks, by regular increases
634 banks, by common capital stock dividends
1 bank, by consolidation under act Nov. 7,1918...
29
47,836,014
2,161, 250
8,812, 500
376,000
650,000
2,417,040
37,600
3,527,619
187,268,090
2,179, 500
2,000,000
50,000-
Total decreases.
13,315,119
Net decrease in preferred capital stock
o..
Net increase in common capital stock 2
^
Net decrease in number of banks
Charters in force June 30,1936, and authorized capital stock...
Charters in force June ZO, 1937, and authorized capital stock...
$240,000
1,921,260
11,744,694
30,849,670
25,000
976,750
13 banks, by conversion of preferred capital stockTotal increases
Voluntary liquidations
Receiverships
Decreases of capital stock:
24 banks, by reduction of common capital stock
1,307 banks, by retirement of preferred capital stock
8 banks, by decrease of par value of preferred capital stock.
2 banks, by reduction of preferred capital stock
Closed under consolidation (act Nov. 7,1918) and capital stock
decreases incident thereto
Preferred
193,902,130
191,740,880
34,895,895
3 66
5,388 "i," 255," 924," 926'
• 6,322
1,290,820,821
493, 261,922
301, 611,042
> Previously reported in voluntary liquidation.
3 Net increase in common capital stock after adjustment for capital stock of 4 receivership banks previously reported in voluntary liquidation.
3 Net decrease in number of banks in existence after adjustment of the number of receiverships for 4 banks
previously reported in voluntary liquidation.
* These figures differ from those shown in the table on page 120. Banks that have discontinued business
although not in formal liquidation, do not submit reports of condition, but are included in this table.
Reorganized national banks
The program with respect to the reorganization of national banks,
and banks other than national in the District of Columbia, which were
unlicensed at the close of the banldng holiday, March 16, 1933, was
completed on February 6, 1935. Of the 1,417 unlicensed banks, with
$1,922,699,000 of unsecureci deposits, 1,096, with deposits of
$1,772,971,000, were reorganized under old or new charters or absorbed by other banks; 31, with deposits of $11,518,000, were placed
in voluntary liquidation and left the national system; and 290, with
deposits of $138,210,000, were placed in receivership for liquidation
under the supervision of the Comptroller of the Currency.
During the fiscal year 1937 liquidating dividends amounting to
$43,361,000 were paid by receivers and trustees for waiving creditors
of banks unlicensed on March 16, 1933.
Up to June 30, 1937, unsecured liabilities were released aggregating
$1,552,255,000, or 80.73 percent of the total unsecured liabilities on
March 16, 1933. Of the 1,417 banks, 639 released 100 percent of
unsecured liabilities at or subsequent to reorganization.
REPORT OF THE SECRETARY OF THE TREASURY
123
BUREAU OF CUSTOMS
Collections
For the fourth consecutive year, customs revenue increased over
that for the preceding year. Total collections of $488,342,746 in 1937
were 26 percent greater than during the preceding year and almost
double the collections in 1933 when the effects of the depression were
felt most severely. Each of the different types of duties yielded
larger returns than during 1936, as is indicated in the following table:
Customs collections and refunds for the fiscal years 1936 and 1937
[On basis of accounts of Bureau of Customs]
1936
Collections:
• Duties:
, Consumption entries
.
Warehouse withdrawals
M a i l entries
.
Baggage entries
Informal entries
.
Appraisement entries...
Increased a n d additional d u t i e s
O t h e r duties
.
: i...
.•
:
Percent
+33.7
+13.0
+6.6
+28.9
+15.2
+30.8
+65.9
+22.3
386,941,335
487,366,464
+26.0
1 1,309,068
285, 368
1 170.329
647, 936
267, 430
68,587
-58 1
—6 3
—59.7
36,023
56,306
+9.3
+22. 7
T o t a l miscellaneous.._
. T o t a l c u s t o m s collections
.
Total refunds.
1 Revised.
'.
(-)
$313, 631.391
162.007.421
3. 290,800
998,406
1,053,812
302,221
6,062,407
120,007
Miscellaneous:
F i n e s a n d forfeitures.
.
L i q u i d a t e d damages .
Sale of seizures.
_^
.
Sale, of G o v e r n m e n t p r o p e r t y , u n c l a i m e d a n d a b a n d o n e d
• merchandise
..
A i r other c u s t o m s receipts
•.
Increase ( + )
or decrease
$234,567,622
143,378,641
3,088,278
......
774, 764
914, 926
231,046
3,888,080
_.
98,090
• Total duties
Refunds:
Excessive duties
Drawback payments.
1937
32, 971
46,877 '
1,843, 613
976, 282
—47.0'
388, 784,948
488,342, 746
+25.6
5, 718, 328
10,022. 666
4, 568, 736
10, 773,690
—20.1
+7.6
16. 740.884
16,342,425
-2.6
. ; ; : . ,
Increases in the value of imports and in the duties collected were
recorded for each schedule of the Tariff Act of 1930, with the exception
of .the sugar schedule. Sugar imports are largely restricted by an
import quota on a calendar j e a r basis, and heavier imports of cane
sugar during the period from; July to December 1935, than during the
corresponding months of 1936 accounted for the decline during the
past fiscal year, since almost identical quantities of sugar were imported from January to June of the 2 fiscal years.
: Agricultural products continued to yield the largest portion of the
revenue, almost one-four^th of the duties collected during the year
having been derived from this source. Imports of raw wool continued
to increase and as a result the revenue derived from the iteihs included
in schedule 11 showed a larger relative gain over 1936 than for any
other of the important revenue-producing tariff schedules. Duties on
beverages also recorded substantial gains, despite reductions in the
rateS'Of duty applicable to most of the imported liquors and wines under
the terms of several of the reciprocal trade agreements. Duties col
124
REPORT OF THE SECRETARY OF THE TREASURY
lected on metals and metal products and on cotton products also
showed a considerably higher percentage of increase than for the dutiable list as a whole. The rayon schedule recorded the greatest relative gain, collections having been almost three times those of 1936;
The values of dutiable imports and the estimated duties, by tariff
schedules, are shown in table 14 on page 369 of this report. I t will
be observed that the aggregate of duty collections as computed by
tariff schedules is somewhat less than the actual collections reported by
collectors of customs. This is in part due to the fact that the computations are necessarily based upon the data reported at the time of original
entry and do not take into consideration the increased and additional
duties levied as a result of the final determination of the correct
quantity by the weighers and gangers, changes in classification or rates
of duty by appraisement officers, or clerical errors found upon liquidation of the entry. Furthermore, the import documents, from which
the statistics used in the computation of duties are compiled, do not
include many baggage, mail and informal entries on which the duties
collected amount to a considerable sum.
'• Almost 82 percent of the total duties collected during 1937 was
reported by 10 customs districts. A statement of the duties collected
for each customs district appears in table 15 on page 373.
Volume of business
In order to present statistics of the volumeof customs business which •
are analogous to collections, the data which follow are limited to the
area in which all collections are turned into the Treasury of the United
States. Since all customs receipts in the Virgin Islands and all except
fines and other minor collections in Puerto Rico are deposited to the
credit of those governments, none of the data for the former and none
except those on seizures for the latter are included below.
Entries of merchandise.—^The total number of entries of merchandise
increased from 2,712,954 in 1936 to 3,074,361 in 1937. This marked
the fourth successive year of increased business as measured by the
number of entries and almost reached the high levels attained in
1929 and 1930. All types of entries participated in this increasein
business, as is shown in the following table:
Number of entries of merchandise, fiscal years 1936 and 1937
1936
Consumption entries
Warehouse and rewarehouse entries
Warehouse withdrawals
Mail entries
:
Baggage entries
Informal entries
All other
Total
..^.
1937
Increase
607,431
68, 929
379,124
627, 261
480, 048
206, 436
• 643, 725
590,110
75,935
382, 383
564, 546
695,706
244, 283
621, 399
Percent
16.3:
10.2;
.9'
7.1
24.1
18. a
14.3
2, 712, 954
3, 074, 361
13.3
Vessel, airplane, and highway traffic.—Increases in the number of
vessels and vehicles used in international passenger traffic and in the
number of passengers entering this country were reported during 1937
compared with the previous year. The following statement covers
the leading traffic classes for the last 2 years:
REPOET or THE SECRETAEY OF THE TREASURY
125
Number of vehicles and persons entering the United States from abroad, fiscal years
1936 and 1937
Increase or
decrease (—)
1936
Vehicles:
Automobiles a n d busses
D o c u m e n t e d vessels
Ferries a n d other vessels
Passenger .trains
Airplanes.
.^
O t h e r vehicles
_..
Passengers b y :
Automobiles a n d b u s s e s .
D o c u m e n t e d vessels
Ferries a n d other vessels
Passenger 'trains
Airplanes.
.
0 ther vehicles
Pedestrians
T o t a l passengers a n d pedestrians.
9,992, 312
29, 601
191, 548
34, 086
4,588
328, 752
11, 217, 252
32, 672
201, 385
34, 607
5,455
408, 710
Percent
12.3
10.4
5.1
1.5
.18.9
24.3
27,209,538
898, 267
2, 685, 795
991, 351
27, 111
1,874, 050
10, 601, 967
31, 322, 255
1, Oil, 605
2, 914, 070
1, 208. 448
37; 304
1, 800, 286
10, 944,196
15.1
12.6
8.5
21.9
37.6
-3.9
3.2
44, 288, 079
49, 238,164
11.2
Drawback transactions.—The number of drawback entries increased from 19,429 ^ in 1936 to 22,152 in 1937. Drawback payments also mcreased, from $10,022,556 in 1936 to $10,773,690 in 1937.
The actual payments corresponded very closely to the total allowed
under the various drawback provisions of the Tariff Act of 1930.
About 98 percent of the drawback allowed consisted of drawback
on exported merchandise manufactured from imported materials. Of
the notices of intent to export with the benefit of drawback, 202,370 ^
were filed in 1936 and 230,266 in 1937, of which 79,550' in 1936 and
99,748 in 1937 were forwarded to other districts for final disposition.
A comparison of the drawback transactions during the last 2 years
is presented in the following table:
Number of drawback transactions, fiscal years 1936 and 1937
1936
D r a w b a c k entries received.
Notices of i n t e n t :
Originating in t h e district
Received from other distiicts
F o r w a r d e d to o t h e r districts
Certificates of m a n u f a c t u r e received
I m p o r t entries u s e d in d r a w b a c k l i q u i d a t i o n
Certificates of i m p o r t a t i o n issued
D r a w b a c k allowed:
M a n u f a c t u r e d from i m p o r t e d m e r c h a n d i s e
D u t y p a i d o n m e r c h a n d i s e exported from c o n t i n u o u s
customs c u s t o d y
M e r c h a n d i s e which did n o t conform to s a m p l e or
specifications a n d r e t u r n e d to c u s t o m s c u s t o d y a n d
exported
,
Salt used in curing fish
T o t a l d r a w b a c k allowed
I n t e r n a l r e v e n u e refund o n a c c o u n t of domestic a l c o h o l . . .
Total
» Revised.
16109—38-
•^10
1937
Increase or
decrease (—)
1 19,429
22,152
Percent
14.0
1 202, 370
82,062
1 79,550
10, 568
18,956
4,143
230, 266
104,073
99.748
11,139
19,378
4,518
13.8
26.8
25.4
6.4
2.2
9.1
$9, 867, 968. 54
$10,504, 935. 87
6.6
90,176. 82
187,179. 58
107.6
58,910. 41
9, 862. 72
86,118. 07
5, 244. 29
46.2
-46.8
10, 026,918. 49
159, 892. 64
10, 783,477. 81
169, 731.18
7.5
6.2
10,186, 811.13
10,953, 208.99
7.5
126
REPORT OF THE SECRETARY OF THE TREASURY
Appraisement of merchandise.—Not only were substantial increases
recorded during the year in the number of each type of packages examined by appraisement officers but the number and amount of additions to value by examiners also showed pronounced gains. The
following is a summary of appraisement activities for the last 2 years:
Examinations by appraisement officers, fiscal years 1936 and 1937
1936
Number of packages examined:
At appraisers'stores.. . .
..
At importers' places of business
On wharves, at freight terminals, on highways, etc..
Mail
Additions to value by examiners:
Number.-.
Value
..
1937
Increase
1,363,439
534,133
10.407.935
6,994,493
1,970,643
586,779
14,432.178
6,600,269
P&reent
45.6
9.9
38.7
8.4
6,112
$923, 526
6,968
$1, 605, 344
14.0
63.0
Protests and appeals.—The general increase in customs business is
reflected in the number of protests and of appeals for reappraisement
filed with the various collectors. The following statement shows the
progress of this work during the last 2 years:
Number of protests and appeals, fiscal years 1936 and 19S7
1936
Protests flled with collectors by importers
Protests allowed by collectors
Protests denied by collectors and forwarded to customs court.
Appeals for reappraisement filed with collectors
_
• 58, 510
(0
57, 226
3,934
1937
72, 788
885
84,354
6,656
Increase
Percent
24.4
47.4
69.2
I Not reported.
Law enforcement activities
Seizures.—The number of seizures made for violations of customs
laws continued to decline, totaling only 10,624 in 1937, a decrease of
4,017 from the preceding year. This decrease, as in the 2 previous
years, was due chiefly to a further decline in the number of lottery
and liquor seizures. The lottery seizures numbered only 175 in 1937,
compared with 3,953 during the previous year. Practically all
lottery seizures are now handled by the post office authorities.
Liquor seizures numbered only 2,430, 60 percent of which were made
along the Mexican border.
The value of seizures declined from $1,590,968 in 1936 to $1,260,618
in 1937, a difference of $330,350, which was due entirely to the small
amount of distilled liquor and alcohol seized. The only liquor
seizure of any consequence consisted of 2,722 gallons seized at Baltimore.
The number of seizures of merchandise was about 10 percent greater
and the value more than twice the value for 1936. Most of the increase in value was due to two seizures, one of diamonds valued at
$286,346 and one of" quicksilver valued at $238,500. Seized watch
movements numbered only 2,503 with a value of $14,717, compared
with 9,955 movements valued at $74,696 seized during the previous
year. Seizures of furs showed a large increase, due to a single.seizure
valued at $107,595.
127
REPORT OF T H E SE.CRETARY OF T H E TREASURY
The number and principal types of seizures during the last 2 years
are shown in the following statement:
Seizures for violations of the customs laws, fiscal years 1936 and 1937
Increase ( + )
or decrease (—)
1937
Meirchandise:
N u m b e r of seizures
Value:
J e w e l r y , precious metals a n d stones, a n d w a t c h p a r t s
W e a r i n g apparel a n d luggage
Toilet articles a n d m e d i c i n e
Textiles a n d r a w wool
Furs—skins a n d m a n u f a c t u r e d
E d i b l e s a n d farm p r o d u c e
H o u s e furnishings, i n c l u d i n g c h i n a
Guns and ammunition
H a r d w a r e a n d sport goods
Cigars a n d cigarettes
B o o k s a n d stationer's s u p p l i e s
,
P r o h i b i t e d articles
Livestock, etc. (excluding horses)
.:
Miscellaneous
T o t a l v a l u e of m e r c h a n d i s e
P r o h i b i t e d articles:
Obscene, n u m b e r of seizures
L o t t e r y , n u m b e r of seizures
Narcotics:
N u m b e r of seizures
Value
Liquors:
N u m b e r of s e i z u r e s . .
Q u a n t i t y seized (gallons):
DLStilled liquors a n d wines
Malt
Alcohol
-.
Value, all liquors
Vessels, vehicles, a n d other m e a n s of t r a n s p o r t a t i o n , value
G r a n d total:
' N u m b e r of seizures
Value
6,378
6,994
Percent
+9.7
$164,301
29,980
13,299
29,440
30, 297
16. 013
68,813
401
6,774
3.426
5,337
5.731
13,964
54,188
$338,969
60,327
10, 624
25.203
128,045
50, 349
21, 241
838
23, 218
2,636
10,727
5,668
7,662
264,904
+119.7
+101.2
-20.1
-14.4
+322.6
+214.4
-69.1
+109.0
+242.8
-23.1
+10L0
-1.1
-45.1+388:9
431,964
950.401
+120.0
748
3,953
596
175
-20.5
-96.6
310
$110,129
430
$82,551.
+38.7
-25.0
-25.3
3,252
23,837
231
101, 604
$653, 253
$395, 622
5,627
111
860
$33, 747
$193,919
-76. 4
-61.9
-99.2
-94.8
-61.0
14, 641
$1, 690,968
10. 624
$1,260,618
-27.4
-20.8
In addition to the goods which were seized, claims were initiated
against importers in connection with various irregularities and frauds
discovered after the goods had gone into consumption. These claims
amounted to $10,971,897 during 1937, compared with $5,035,269 m
similar cases initiated during the previous year.
In their campaign to prevent the smuggling of narcotics, customs
officers made 317 seizures, valued at $82,551, compared with 200 ^
seizures in 1936, valued at $110,129. The quantity of drugs seized in
1937 was 17,450 ounces, compared with 15,279 ounces in 1936.
As a result of the smaller number of attempts to smuggle liquor^
only 527 automobiles valued at $169,510 and 29 boats valued at
$13,666 were seized for customs violations during 1937. The following table summarizes the number and value of the equipment seized
for violations of customs laws during the last 2 years:
1 Revised.
128
REPORT OF THE SECRETARY OF T H E TREASURY
Vessels, vehicles, airplanes, and horses seized for customs violations, fiscal years
1936 and 1937
L i q u o r violations
Boats:
Number
.
Value
Automobiles:
Number
Value
.
Airplanes:
N^umber .
• Value
Horses:
Number
Value
.
Total value
..
1936
1937
37
$174,956
7
$3, 316
139
$22, 728
63
$7,837
Narcotic
violations
1937
1937
1936
1
$100
37
$21,691
21
$10,251
74
$196,647
29
$13, 666
114
. 121
$40, 236 • $42, 554
363
$113,624
360
$119,119
623
$176, 588
527
$169, 510
•
6
$95
$198,194
$11,247
$42, 664
$40,236
1937
3
$2,900
2
$2, 400
1
$10
. -
Total
1936
1936
1
$500
.
o t h e r violations
505
$19,477
386
$10, 648
506
$19,487
392
$10, 743
$157,192
$140,018
$395, 622
$193,919
All automobiles seized by narcotic agents are delivered to the
Customs Service for forfeiture under customs laws. There were 103
of ;these automobiles valued at $37,884 in 1937, compared with 108
valued at $36,823 in 1936. ^
^
During the year 317 seized automobiles and trucks were either
exported or returned to the petitioners because the violations were
not sufficiently flagrant to warrant the forfeiture. Of the 201 vehicles
forfeited, 108 were assigned for official use either to the Customs
Service or to some other governmental agency and 93 were sold at
public auction.
Other Government enforcement agencies cooperate in the enforcement of customs laws. The following table presents the record of
customs seizures classified according to the various agencies which
were instrumental in apprehending violators of customs laws:
Seizures made by the Customs Service and other governmental agencies for violations
of customs laws, and number of arrests, fiscal year 1937
Seizures
Number
of arrests
Total
Number!
C u s t o m s Agency Service:
InvestigtAtive U n i t
Enforcement Unit
C u s t o m s Service, exclusive
Agency Service
136
263
Value
364
732
$854,142
72,082
9,116
Liquor
Value
Number
32 $16,356
1,334
12
6
159
Nura
ber
Lottery
and
obscene,
n
umValue
ber
$7, 094
7,320
9
6
of
..
72
T o t a l C u s t o m s Service
Coast Guard
I m m i g r a t i o n Service
C u s t o m s Service assisted b y
other ofQcers
O t h e r F e d e r a l a n d local officers...
471
50
18
G r a n d total
Narcotics
>
67
28
624
269, 242
273
64,416
2,131
12,696
750
10, 211 1,195, 466
3, 121
13
12,983
126
317
82,105
2,295
•6
70
27,110
21
2,989
765
9,947
39,101
9
104
206
240
51
9
3, 261
366
3
10,624 1, 260, 618
430
82, 551
2,430
33,747
770
145
129
2
1 Excludes number of boats, automobiles, and horses, as these were seized in connection with narcotic, etc.,
seizures.
129
REPORT OF THE SECRETAEY OF THE TREASURY
Seizures made by the.Customs Service and other governmental agencies for violations
of customs laws, and number of arrests, fiscal year 1937—Continued
Seizures—Continued
Merchandise
Number
Customs Agency Service:
Investigative Unit..
Enforcement Unit
'Customs Service exclusive of
Agency Service. _
318
555
6,961
Total Customs Service.. 6,834
8
Coast Guard
_.
54
Immigration Service _
'Customs Service assisted by
85
other officers
Other Federal and local offi13
cers.
Grand total
6,994
Value
Boats
Automobiles
Total
value
boats,
automobiles, Num- Value Num- Value
and
ber
ber
horses
$795,034
17,400
$35,668
46, 028
136,398
6
6
$6,607
692
79
142
Horses
Num- Value
ber
$29,801
35,931
6
366
$250
9,406
55,733
7
2,827
152
52,012
12
894
948, 832 137,419
3,000
100
9,666
429
19
2
6
9,126
3,000
25
373
117, 744
383
10,549
28
9,420
3
120
954
6,526
2
1,615
21
3,937
6
74
86
38,409
2 105
38,409
950,401
193,919
627
169, 510
392
10, 743
29
13, 666
» Seized mostly by narcotic agents for forfeiture under customs laws.
The following table summarizes the results accomplished during
1937 by customs officers in assisting other agencies in enforcing immigration, internal revenue, and other laws:
Seizures made by customs officers for other governmental organizations, fiscal year 1937
rmmigration.
Agriculture
Narcotics .
_
Internal Revenue
•Justice
Secret Service
Indian Service
"Commerce. ._ _
•Canadian authorities
State authorities .
.
•County authorities
Municipal authorities
Seizures
Persons
apprehended
Organization
Number
289
Total
Liquor
Alcohol
Number
Number
Gallons
Gallons
14
1
1,056
8
3
4
1
1
4
4
3
1
2
2
200
382
763
20
1,266
1
_
Automobiles
682
1
165
1
1
1
64
12
.
Total
769
10
759
Legal proceedings.—As the result of the narcotic seizures, 59 defendants were presented for prosecution. The cases concluded resulted in 42 convictions and only 3 acquittals. Prison sentences
aggregating 169 years and fines amounting to $113,929 were imposed
by the court on the convicted offenders. In addition, penalties
aggregating $81,418 were assessed against the masters of 32 vessels,
on which narcotic drugs were found concealed, and $13,634 was collected from the masters of vessels involved in narcotic violations.
In connection with all seizures, there were 624 arrests, compared
wdth 869 arrests during the previous year. Although there were
fewer arrests and convictions during 1937, a higher ratio of convic
130
REPORT OF THE SECRETARY OE THE TREASURY
tions resulted from the cases disposed of. Of the 711 cases disposed
of, 491 convictions were secured, or 69 percent of the total; in 1936,
in 1,140 cases disposed of 619 convictions were secured, or 54 percent
of the total. Only 52 defendants were acquitted after trial and 168
cases dismissed or transferred before trial, compared with 87 acquittals and 434 dismissals or transfers in 1936. Prison terms to
which customs violators were sentenced aggregated more than 550
years during 1937, compared with 473 years in 1936, while the total
amount of the fines imposed was $146,724 during 1937 and $116,532
during the previous year.
Fines, penalties,^ etc.—The total collections of fines, penalties, etc.,
because of violations of customs laws aggregated $883,953 during
1937, compared with $1,764,765 during the previous year. The 1936
total included $843,413 of penalties collected in connection with cases
which originated prior to the repeal of the eighteenth amendment,
while only a small amount was collected from this source during 1937.
A further cause for the decline in collections was the smaller proceeds
from the sales of seized and forfeited merchandise.^
As a result of greater tourist traffic, the collection of penalties resulting from the discovery of undeclared merchandise in the baggage
of passengers arriving from abroad greatly increased during the year
and more nearly approximated the amounts obtained from this type
of violation during pre-depression years. Penalties collected for
fraudulent undervaluations and false invoicing continued to constitute an important source of revenue although each of these types
of penalties was slightly less than during 1936. Penalties for irregularities in bonded importations represented the largest single item
in the 1937 total, but were slightly less than during the previous year.
The violations in the latter case were technical rather than willful^
combining a variety of irregularities such as failure to produce consular invoices, shortage in or improper delivery of bonded shipments,
failure to redeliver merchandise subject to export or to further customs
examination, etc.
The net proceeds of the sale of seized articles by the collectors of
customs declined from $43,262 in 1936 to $22,151 in 1937, while the
proceeds from sales by court order decreased from $127,067 to $46,436.
The greater part of this decline resulted from the smaller returns from
the sales of boats and automobiles and the cessation of the sale of
seized liquor during the year. During 1936 the proceeds of the sale
of 21 boats and 206 automobiles aggregated $92,489 and $9,386,
respectively, while during 1937 the sale of 14 boats and 105 automobiles yielded only $3,631 and $3,888, respectively. Sales of seized
liquor accounted for $11,590 in 1936 but yielded nothing during 1937.
No seized liquor has been sold since August 1935; any seizures since
that time, if of a sufficiently good quality for medicinal use, are delivered to the Federal and State Governments or to eleemosynary
institutions. The following table presents a summary of the amounts
collected for the last 2 years in the form of fines, penalties, forfeitures,
and sale of seizures, classed according to the type of violation:
REPORT OF T H E SECRETARY OF T H E TREASURY
131
Collections for violations of the customs laws, fiscal years 1936 and 1937
Violation
1936
1937
Increase (-f)
or decrease
(-)
Undeclared articles in baggage of passengers arriving from
abroad
Irregularities in bonded importations (liquidated damages)..,
Fraudulent undervaluation
False invoicing
Failure of masters of vessels to make complete manifest of imported merchandise..
Unlading foreign merchandise without customs supervision...
Irregularities in mail importations
Smuggling (including conspiracy)-, mostly criminal cases
.
Liquor
_
_
Narcotics:
By masters of vessels on which violations occur
other offenders...
Failure to report arrival in United States
Miscellaneous
.
Net proceeds from sale of goods seized and forfeited for all violations
_.
Total
.$49, 445. 65
285,368. 03
152, 218. 53
119,920.11
$162, 425. 64
267, 430.12
139, 526. 71
111,448.15
26, 271. 05
11,064. 81
14, 807.31
31, 769.40
876, 610.41
14, 744.19
11,059. 72
14,876.13
36, 731. 01
27, 247.12
6, 506.84
3, 014. 69
9,126.08
8, 313.94
13, 634. 03
2,474.84
8,193.34
5, 576.98
Percent
+228.5
-6.3
-8.3
-7.1
0)
-43.9
+0.5
+15.6
-96.9
+109. 6
-17.9
-10.2
-32.9
170, 329.09
68, 586.99
-59.7
1,764,764.94
883,952. 97
-49.9
' Less than 0.1 percent decrease.
'Coordination with other agencies.—The coordination plan adopted
during August 1934, which brought close cooperation between the
Coast Guard, Alcohol Tax Unit, Bureau of Narcotics, Secret Service,
and Customs Service remained in operation during the year. The
continued effectiveness of the law enforcement branches of these
agencies, as a result of this coordination, has been most gratifying.
Smuggling
For the first time since the passage of the Tariff Act of 1930, under
the terms of which duties were greatly reduced on importations of
precious stones, an attempt was discovered to smuggle these articles
in commercial quantities. A seizure at New York on November 23,
1936, of 3,396 carats of diamonds appraised at $286,346 resulted in
breaking up one of the largest sm^uggling rings in recent years.
This seizure was the result of an investigation extending over a period
of 3 months and resulted' in the indictment of 55 persons, including
diamond dealers and carriers, many of whom have been convicted,
while the cases against the others are still pending. The smuggling
ring employed as carriers persons not known in the diamond trade and
not apt to attract especial attention from customs officers.
In distinct contrast to recent years, no substantial seizures of
smuggled watch movements were made. This is attributable to the
efficiency of the system'of marking watches instituted by the Swiss
Government authorities in connection with the reciprocal trade agreement with that coimtry which became effective February 15, 1936.
The only important case which developed during the year resulted
from the surveillance of a suspected carrier who arrived in Quebec
and placed his baggage under bond for shipment to New York, where,
upon examination, 1,946 watch movements were found concealed in a
false compartment in his trunk. As a result of the seizure, the carrier,
three of his confederates, and the principal were implicated. The
procedure in this case represented a new departure in the attempt to
smuggle merchandise through Canada, and the result will doubtless
serve to deter others from similar attempts. The previous method
had been to pay the duty required for entry into Canada and later
132
REPORT OF THE SECRETARY OF THE TREASURY
endeavor to smuggle the merchandise across the border into the
United States. The reduction in rates of duty on watch movements
under the terms of the reciprocal trade agreement has left little profit
to smugglers in the method of operation previously employed.
As the result of the arrest of a Pullman porter, who confessed that
he had been carrying lottery tickets into the United States for about
2 years, a substantial seizure of this contraband was effected. The
strict surveillance given to this type of smuggling, and the.scheme of
having tickets for foreign lotteries printed in the United States have
apparently caused a falling off in the number of lottery tickets
smuggled into the United States from Canada, although it is believed
that this is still a major law enforcement problem.
The reduction in the rates of duty on most distilled liquors and wines
under the provisions of several of the reciprocal trade agreements,
the improved quality of domestic beverages, and the close cooperation
of all the law enforcement agencies of the Government, municipal and
State as well as Federal, have resulted in the almost complete cessation
of attempts to smuggle alcohol and alcoholic beverages in commercial
quantities. The vessels that formerly operated as '^Rum row'' appear
to have entered into legitimate trade, and the operators of trucks and
automobiles have found this type of smuggling unprofitable. Liquor
smuggling was limited during the past year to small quantities in
isolated areas.
Two cases of narcotic smuggling of especial importance were
brought to a successful conclusion in the New York district. One of
these resulted in the seizure on March 6, 1937, of 599 cans containing
3,744 ounces of smoking opiuni. In this case the principal was
sentenced to 10 years in prison and fined $5,000. Four members of
the crew of the vessel on which the opium was found were sentenced
to terms ranging from 18 months to 4 years, and two harbor junk-boat
operators were each sentenced to 6K years in prison.
The other narcotic case disclosed an organized conspiracy involving
members of the crews of vessels, together with shore contacts, dock
employees, and women visitors. In connection with this case four
seizures w^ere made between October 13 and November 9, 1936,
which aggregated 209 pounds of crude opium and 23 ounces of heroin.
The intensive investigation resulted in the arrest and conviction of
two of the principals and eight other participants in the conspiracy.
One of the principals was sentenced to 40 years and fined $40,000,
while the other principal was sentenced to 25 years and fined $45,000.
Two members of the shore gang received sentences of 10 years each,
while three members of the crew of various foreign liners were sentenced for shorter periods. The results in these cases were particularly noteworthy since the conviction of the principals in many
narcotic cases in the past has been very difficult due to their ability
to keep themselves well in the background.
The convictions in the latter case resulted in the discovery of another
conspiracy to smuggle narcotics, the outcome of which was the indictment of six individuals, one a principal who had been in the illicit
traffic rather extensively for a number of years.
After the theft of 140 pounds of narcotics from a Montreal warehouse, a seizure was made of a portion of the drugs which had been
smuggled into the United States by a Pullman porter as carrier.
Information secured from the smuggler as to the source of supply
resulted in a seizure of another part of the stolen drugs.
REPORT OF THE SECRETARY OF THE TREASURY
133
In August 1936, a customs inspector at Los Angeles discovered 54
pounds of heroin concealed in two trunks belonging to a Chinese girl
who was a passenger on a Japanese liner. She was brought to trial
and sentenced to 10 years in prison. As a consequence of the investigation in this case one conspirator committed suicide on liis arrival
in New York from Cuba, and another in Shanghai either committed
suicide or was murdered.
. No seizures of narcotic drugs of appreciable size were made during
the year by the Customs Service in Hawaii, formerly a fertile field for
narcotic operators. Searching officers employed by certain steamship
lines have proved to be very effective in preventing the handling of
narcotics by crew members.
At Seattle the only drugs seized were smoking opium and morphine. The larger rings in control of narcotic smuggling, especially
the Chuiese rings, have been quite effectively broken up in the Seattle
area by the arrest and prosecution of many oriental smugglers,
addicts, and conspirators.
Customs procedure
During the year the Bureau of Customs promulgated numerous
decisions construing sections of the tariff laws and related statutes.
The trade agreements previously adopted and continued in effect, as
well as the three additional agreements which became effective
during the year, made necessary many decisions relating to the
classification of imported merchandise.
^ Under authority of section 318 of the Tariff Act of 1930 (U. S. C ,
title 19, sec. 1318), the President, by proclamation, authorized the
Secretary of the Treasury to extend, for a further period of not more
than 1 year, the time during which (1) merchandise imported during
1930, 1931, 1932, 1933, and 1934 may remain in warehouse, (2) proof
of use may be furnished that wool or camePs hair imported or withdrawn from warehouse, under bond, during 1930, 1931, 1932, 1933,
and 1934 has been used in prescribed manufacture, and (3) articles
manufactured in the United States may be exported with benefit of
drawback where the merchandise concerned was imported during
certain periods of 1930, 1931, 1932, 1933, and 1934. Such extensions
were granted by the Secretary of the Treasury during 1937 under
Treasury Decisions 48759, 48774, and 48773, respectively.
The Bureau of Customs took an active part in the preparation and
administration of the Presidential proclamation under section 318
{supra), declaring an emergency to exist as the result of the disastrous
Ohio River flood, and authorizing the Secretary of the Treasury to
permit the free entry of food, clothing, and medical and surgical
supplies imported during such emergency for use in relief work.
This proclamation was issued February 1, 1937, and revoked May 27,
1937.
An active part was also taken in the consideration of two applications filed with the Foreign Trade Zone Board under the act of June
18, 1934 (U. S. C , title 19, sec. 81a-u), to establish foreign trade
zones at Mobile and San Francisco. The first zone to be established
under the act was opened at Stapleton, Staten Island, N. Y., on
February 1, 1937.
Considerable attention has been devoted to the questions involved
in the application of countervailing duties under section 303, Tariff
134
REPORT OF THE SECRETARY OF THE TREASURY
Act of 1930 (U. S. C , title 19, sec. 1303), upon the importation of
merchandise in connection with the production or exportation of
which a bounty or grant was paid or bestowed in a foreign country
by means of currency manipulation and other procedures. The
countervailing duty law has increased customs activities by reason of
economic and political conditions abroad which have resulted in
numerous and intricate subsidy practices.
The revision of the Customs Regulations of 1931, to be reprinted
as the ''Customs Regulations of 1937,'' was nearly completed by
June 30, 1937. The data contained in the Digest of Customs and
Related Laws, published in 1935, have proved to be such a valuable
source of information to customs officers that arrangements have
been made to maintain a current digest of the same nature.
Customs Agency Service
The Customs Agency Service is the investigative unit of the Customs
Service and is charged primarily with preventing and detecting frauds
in customs revenue. The officers of this Service are required by the
regulations to conduct all investigations involving fraud or violations
of the customs laws, and to investigate and report upon all matters,
brought to their attention by the Secretary of the Treasury, Department officials, the. Commissioner of Customs, collectors, and other
customs administrative officers, with respect to smuggling, classification, undervaluation, drawback, personnel, customs procedure, and
other related subjects. At the close of the year 879 persons were in
this Service.
Undervaluation.—As long as there is keen competition among foreign
manufacturers for the American trade, efforts will be made to reduce
landed costs by the undervaluation of goods dutiable at ad valorem
rates. Investigations involving alleged undervaluations were made
in every customs agency district, but the most important case of the
year uncovered an extensive practice by foreign sellers to divide, in
the case of highly priced patented articles, the price charged for the
exported merchandise into merchandise cost and so-called ''royalties",
etc. The "ro^^slties" were not listed as a part of the purchase price,
either in the consular invoices or entries, which resulted in a material
loss of revenue to the Government. The investigation in this case
will result in collections of penalties in excess of $100,000.
Drawback investigations.—The investigation of the qlaims of manufacturers desiring to establish a rate of drawback resulted in the payment of $10,773,690 as drawback during the year. The examinations of merchandise exported with benefit of drawback, conducted
by customs agents to detect and prevent frauds under the drawback
provisions of the tariff act, resulted in substantial recoveries by the
Government of drawback overpayments.
Port Examination Commission.—During the year the Port Examination Commission of the Customs Agency Service examined the
accounts and procedure in nine customs collection districts for the
purpose of securing uniformity and greater efficiency in the conduct of
the customs business throughout thCj country. In addition, customs
agents examined 216 financial accounts of collectors of customs.
Enforcement u n i t . ~ B j order of the Secretary of the Treasury, all
customs border patrolmen, numbering about 500, were transferred
REPORT OF THE SECRETARY OF THE TREASURY
135
during the year from the jurisdiction of the several collectors of customs to the Customs Agency Service. Most of these patrolmen have
been deployed at strategic seaport and border stations under the
supervision of four district superintendents, and are engaged in enforcement work. The remaining patrolmen have been detailed to various
supervising customs agents to assist in the more routine enforcement
duties in their districts and in the development of narcotic cases.
Foreign investigations.—On September 2, 1936, the Secretary of the
Treasury ordered that thereafter the Customs Agency Service should
be charged with full responsibility for the conduct of all narcotic
smuggling investigations abroad. In accordance with these directions, all agents of the Bureau of Narcotics then on duty in Europe
were transferred to the Customs Agency Service and placed under
the direct supervision of the supervising Treasury attache at Paris.
The customs agents in the foreign service, known as Treasury representatives, continued to contact foreign manufacturers in an effort
to establish foreign values or export values of merchandise exported to
the United States and to make investigations regarding possible
dumping. They render invaluable service in securing information
regarding shipments of narcotics, jewelry, and other merchandise
which frequently makes possible the detection of smuggling attempts.
Customs Information Exchange:—This branch of the service disseminates information with respect to foreign market values, classification
of imported merchandise, and similar data, and is a clearing house for
requests from appraising officers for foreign investigations. The
statement following summarizes the activities of the exchange during
the year:
Number
Appraisers'reports of values received
J
13,786
Appraisement appeal reports received
6,140
Changes in value circulated
^- 1,966
Requests for investigations abroad
1
1,283
Reports received in response to requests for investigations abroad
2,167
Reports received of original investigations by Treasury attach6s, and price lists received from Ameri-.
can consuls
5,634
Difierences in classification reported between field ports and practice at port of New York forwarded
to Bureau of Customs
803
Miscellaneous
Customs School of Instruction.—The School of Instruction for the
Customs Service, which was established on July 5, 1935, includes in
its enrollment the entire personnel of the Customs Service as well as
many employees from cooperating branches of the Government. It
has a total enrollment of 8,600, of whom 50 percent is taking the
entire course of 41 subjects.
Although the instruction has thus far been carried on entirely by
correspondence, classes have been organized at many ports under the
direction of expert field officers who explain the lesson text and apply
the principles to local problems. This has materially increased
the employees' knowledge of customs law and procedure.
In view of the close relationship of our Government with the Philippine Government, it was recently decided to grant the request of the
latter government to make its officers and employees eligible for
enrollment. Customs officers from several foreign countries, including China and Turkey, have made a detailed study of customs law
and procedure under the gu!idance and with the assistance of the
School of Instruction.
136
REPORT OF T H E SECRETARY OF T H E TREASURY
Quota control.—Import quotas, established under the terms of the
Canadian trade agreement, Philippine Independence Act, the Philippine Cordage Act, and Executive Order No. 7575 of March 13, 1937,
limit the quantity of certain commodities which may be imported
within quota periods or may affect the dutiable status of certain other
commodities within quota limitations. The control of these quotas
is administered by the Bureau of Customs. Periodic information is
provided through the press regarding the percentage of fulfillment
of each import quota, and when the quota on any commodity is
approaching fulfillment. Information regarding each of the quotas
for the quota periods ended during the fiscal year 1937 is summarized
in the following table:
Commodities imported under, quota provisions during quota periods ended in the
fiscal year 1937
Quota period
Sawed timber and lumber.
n. s. p. f., of Douglas fir or
Western hemlock.
Cattle, weighing less than 175
pounds each.
Cattle, weighing 700 pounc s
or more each and n. s. p. f.
Cows, weighing 700 pounds or
more each and imported for
dairy purposes.
Cream, fresh or sour
White or Irish certified seed
potatoes.
Red cedar shingles from
Canada.
Coconut oil from the Philippine Islands.
Kefined sugar from the Philip• pine Islands.
Unrefined sugar from the Philippine Islands.
Yarns, twines, cords, cordage,
rope, and cable, tarred or
• untarred, wholly or in chief
value of mnnila (abaca) or
other hard fibers, from the
Philippine Islands.
Unit of
quantity
Quota
Quantity
imported
Percent
of q u o t a
filled .
250,000,000
151,989,903
60.8-
Head
51,933
51, 933
1 100.0
do
Head
155, 7f'9
155, 7V0
2 100.0
do
Head
20,0(€
6, 579
32. 9'
44, 352
43, 559, 641
96. 8.
Calendar year
do
do
12 months beginning Dec. 1.
6 months beginning Jan. 1,19.37.
Calendar year
Board feet-
Gallon
Pound
1, 500, OdO
45, OOU, 000
Square
1, 048, 262
1,042,163
Pound
448, 000, 000
332,178, 968
74. 15.
111, 898, 047
99. 91
do
Pound
112, 000, 000.
do
Pound
1, 792, 000, 000
Pound
6, 000, 000
12 months beginning May 1.
3.0
1,791,313,982
6, 000, 000
99.4
99. 96
3 100. 0
1 Filled Aug. 7, 1936.
2 Filled N o v . 13, 1936.
3 Filled A p r . 22, 1937.
Division of Laboratories.—Since the organization of the Division of
Laboratories on April 1, 1936, as an independent unit, all the chemists
and analysts in customs laboratories are now concentrated at nine
ports—Boston, Baltimore, Chicago, Los Angeles, New Orleans,
New York, Philadelphia, San Francisco, and Savannah—to which
samples of incoming merchandise are sent for analysis. The laboratory
analysis of samples is important as a means of preventing fraud and
increasing customs revenue. A few of the cases during the year in
which an analysis resulted in the assessment of duty at a higher rate
than that at which the merchandise had been entered are as follows:
137
REiPORT OF T H E SECRETARY OF T H E TREASURY
Entered rate
Commodity imported
Cod fish
Wines.
Limestone...
Graphite.Coal tar p r o d u c t s
Essential oils..
C a r d cloth
Resins
Albumen .
.
.
.
.
Correct r a t e
% cent per p o u n d .
75 cents per gallon.
2}^ cents per 100 p o u n d s
10 percent
. . . . .
25 percent
Free
.
25 percent
4 cents per p o u n d a n d 30 percent
6 cents per p o u n d
I K cents per p o u n d .
$1.25 per gallon.
10 cents per 100 p o u n d s .
. . 30 percent.
45 percent a n d 7 cents per p o u n d .
25 percent.
: . 40 pprcent.
7 cents per p o u n d a n d 45 percent.
12 cents per p o u n d .
_
During the year the customs laboratories analyzed 80,985 samples,
which included 39,016 of sugar; 10,167 of ores, metals, etc.; 6,582 of
textiles; 3,674 of fixed oils, fats, etc.; and 3, 626 of alcoholic products.
The Division of Laboratories is engaged in estabhshing methods
for sampling, in order to provide customs officers with instructions
which will accomplish uniformity of practice throughout the Customs
Service. Numerous methods of analysis have also been outlined by
individual chemists and analysts covering the procedure for analysis
of those commodities with which they are particularly expert.
Cost of administration.—^The total revenues collected by the Customs
Service during the year, including collections for other departments,
etc., amounted to $524,267,000, compared with $411,797,000 during
1936. Although the expense of collection increased very slightly from
$20,318,782 in 1936 to $20,515,558 in 1937, the cost to collect $100 was
reduced from $4.93 in 1936 to $3.91 in 1937.
BUREAU O F E N G R A V I N G AND P R I N T I N G
The deliveries of currency, securities, stamps, and miscellaneous
printings by the Bureau during the year amounted to 414,997,792
sheets, compared with 401,216,667 for the previous year, an increase of 13,781,125 sheets.
A comparative statement of deliveries of finished work in the fiscal
years 1936 and 1937 follows:
Deliveries of finished work, fiscal years 1936 and 1937
;
Sheets
Fnpp v^a'lnp TQ37
Class
1936
Currency:
U n i t e d States n o t e s . . . .
Silver certificates
F e d e r a l R e s e r v e notes
.
...
Total
B o n d s , notes, certificates, a n d bills:
Pre-war bonds
Treasury bonds
U n i t e d States, savings b o n d s
A d j u s t e d service b o n d s
Adjusted service .bonds, U . S. G o v e r n m e n t life i n s u r a n c e fund series
T r e a s u r y notes
T r e a s u r y bills
Certificates of i n d e b t e d n e s s .
...
Insular bonds:
Philippines
Puerto Rican
F a r m loan b o n d s
Consolidated farm loan b o n d s
1937
4, 250, 000
57, 009, 00016, 272, 400:
4, 636, 000
62,584,000
12,895,850
$223, 524, 000
1,166, 700, 000
2, 407,980, 000
77, .531, 400;
80, 015, 850
a, 798, 204, 000
31, 876
1, 340, 4841.^
2, 487, 500
9, 285, 500
856
588, Zd2H
2,571,000
353, 7373^^
. 19, 142
600
60
172, 450
17, 846
500
510
12, 051^^5
20,483Ho .
319, 430
1, 265, 000
5, 806, 734, 200
819, 660, 000
.
19, 870
1,8SQH
47, 697
11,585
4,918,4.50,000
5, 836, 012, 000
1, 254, 500
1,182, 000
35, 623, 700
88, 988. 000
138
KEPORT OF THE SECRETAKY OE THE TREASURY
Deliveries of finished work, fiscal years 1936 and 1937—Continued
Sheets
Class
F a c e v a l u e , 1937
1936
B o n d s , notes, certificates, a n d bills—Contd.
Collateral t r u s t d e b e n t u r e s . . .
Consolidated collateral t r u s t d e b e n t u r e s . .
F e d e r a l H o m e L o a n B a n k s consolidated
debentures
.. .
.
Collateral t r u s t notes. C o m m o d i t y C r e d i t
Corporation
Federal
Farm
M o r t g a g e Corporation
bonds
H o m e Owners* L o a n Corporation b o n d s .
Reconstruction
Finance
Corporation
notes
.
.
C u b a n siWer certificates
P h i l i p p i n e t r e a s u r y certificates
I n t e r i m certificates for Federal H o u s i n g
A d m i n i s t r a t i o n m u t u a l mortgage ins u r a n c e fund d e b e n t u r e s
I n t e r i m certificates for P u e r t o Rican
bonds
I n t e r i m transfer certificates for postal
savings b o n d s
Specimens:
Treasury bonds
. _.
U n i t e d States savings b o n d s
Adjusted service b o n d s
Adjusted service bonds, U . S. Governm e n t life insurance fund series
T r e a s u r y notes
Certificates of indebtedness
Insular bonds:
Philippines
-_
P u e r t o Rican
F a r m loan b o n d s
Consolidated farm loan b o n d s „
Collateral t r u s t d e b e n t u r e s
Consolidated collateral t r u s t debentures
Federal H o m e L o a n B a n k s consolidated
debentures
Collateral
trust
notes,
Commodity
C r e d i t Corporation
.. .
Federal
Farm
M o r t g a g e Corporation
bonds
H o m e O w n e r s ' Loan Corporation b o n d s .
Reconstruction
Finance
Corporation
notes
I n t e r i m certificates for Federal H o u s i n g
A d m i n i s t r a t i o n m u t u a l mortgage insurance fund d e b e n t u r e s
Total
8tamp«5:
Customs
.......
.....
Internal revenue:
U n i t e d States
Philippines
P u e r t o Rican
Virgin I s l a n d s
D i s t r i c t of C o l u m b i a
.
Federal m i g r a t o r y b i r d h u n t i n g
Specimens, U n i t e d States
Postage:
U n i t e d States
U n i t e d States, for testing purposes,
B u r e a u of S t a n d a r d s
C a n a l Zone
Philippines
Specimens, U n i t e d S t a t e s . .
P o s t a l savincs
Total
-
1937
935
12,950
92,600
1,055,000
3.800
374,1665^
2,184, 000
11,500
$197, 500, 000
7, 600
84,100, 000
1,260
98,260,000
12,000
9,555
60. 000, 000
360, 000, 000
500
364,- 583^^
2, 010, 000
50, 000, 000
10. 000, 000
20, 410, 000
500
3,973
1,000
2,000
2, 500
2^
1
6
H
1
2\^
1
35
4
22
3H
7
30
2
2
22
2
12
6
4
2
2
9
1
17.601.2.539io
6, 882, 571 Ho
258, 000
277, 460
130,711,73212^04
13, 826
860, 600
50
111,295
18, 350
7,637)^
20
141,608,8185^04
88, 150
924. 055
350
88,108
12,964
137, 265, 788
150, 558,733
96, 022
439,116^^
1415^5
23, 814
269,806,29279^55
75616^04
2051M7
10, 500
987,909 H
155132^700
6,928
294,465,08432^^700
18, 388,319, 400
N u m b e r of stamps,
etc., 1937
6,879,000
12,499,836,569
10, 588, 800
66, 488, 240
35,000
17,621. 600
1,451,968
43, 653
16, 254, 309,904
36,000
525,000
77,364,038
15, 884
692,800 •
27,934, 887,356
REPORT OF THE SECRETARY OF THE TREASURY
139
Deliveries of finished work, fiscal years 1936 and 1937—Continued
Sheets
Class
1937
1936
Miscellaneous:
Checks _
Drafts
Warrants
. . . . .
Commissions
Certificates
Transportation requests
.
Other miscellaneous. _
Blank paper.
.
. .
Specimens
._
For experimental purposes
For exhibition purposes:
Po."=tal savings certificates of deposit
Special stamps on United States postage stamo Daner
Total
31,368,3221^
500
48,410
142, \ 1 ^ %
4,120,894^
417, 320
160,121
1,701
100
2,100
._ . _
27,824,992
500
47,690
183, 746
6,998, 493^^
224,119
362, 264^^
276
2301^^
1,975
139,198,085
2,000
227,875
102, 331
26,786,617
1,120, 595
6,816, 649
34, 634, 286M5
173,278,939
1,087
23, 700
•
16,0702^1
36,277,72097^'(630
Grand total
Number of
stamps, etc., 1937
401,216.66664^^65
414,997.791285^^100
The following dies for new postage stamps were engraved during
the year:
Issue
Army
Navy
Susan B. Anthony..
Ordinance of 1787
DenominaIssue
tion, cents
1, 2, 3, 4, and 6 Virginia Dare
1, 2, 3, 4, and 5 Canal Zone...
3 Trans-Pacific Airmail
3
Denomination, cents
5
14
20 and 50
The Bureau continued the exhibit of printing at Dallas, Tex., for
the Greater Texas -and Pan American Exposition, and prepared and
shipped an exhibit to the International Exposition in Paris.
The Bureau's new annex is expected to be ready for the installation
of equipment and machinery before the end of the fiscal year 1938.
The tunnel under Fourteenth Street to connect it with the main
building is under construction. The high tension transforming
apparatus w^as moved from under the Fourteenth Street entrance
bridge to a new housing between wings A and B of the main building to
provide space for the tunnel.
The inactive stock of series 1928 and 1929 of Federal Reserve
notes, amounting to $3,263,900,000, was transferred from the Federal
Reserve vault in the Bureau to the Treasury building to provide
sufficient room for active stock of Federal Reserve notes.
At the beginning of the fiscal year there were on the pay roll 5,099
employees, including 637 temporary employees, who had been
employed iu the previous year to expedite the printing of adjusted
service bonds. These temporary employees were dropped shortly
after the beginning of the year. Increases in the requirements for
currency, postage stamps, and revenue stamps during the year
required additional personnel so that at the end of the year there
were 5,047 on the pay roll.
The act of June 26, 1936, made applicable as of July 1, 1936, the
40-hour week to employees of the Bureau other than the mechanics;
the latter were granted the 40-hour week by the act of March 28,
1934. Effective May 1, 1937, the mechanics and their helpers,
employees not under the Classification Act, were granted a 15 percent
increase of compensation for night work, to conform with the practice
in the Government Printing Office.
140
REPORT OF THE SECRETARY OF THE TREASURY
There was expended during the year for salaries and expenses
$10,771,065, compared with $9,657,686 during 1936, or an increase
of $1,113,379. The following statement shows the appropriations,
reimbursements, and expenditures for the fiscal years 1936 and 1937:
Appropriations, reimbursements, and expenditures for the fiscal years 1936 and 1937
1936
Appropriations:
Salaries and expenses
Deficiency for 1937 and 1938
Reimbursements to appropriations from other bureaus
for work completed '
$6, 328, 430
1,400,000
$5, 988, 247
Total
-.
Expended, salaries and expenses 2..
Unexpended balance
Increase (+) or
decrease (—)
1937
+$340,183
+1,400,000
4,351, 788
3, 502,635
-849,153
10, 340,035
9, 657, 686
11,231,065
10, 771, 065
+891,030
+1,113, 379
460,000
682, 349
-222,349
1 An additional amount of $9,341.99, received from sale of byproducts and useless property, was deposited
to the credit of the Treasurer of the United States as miscellaneous receipts.
2 Includes $8,000 and $9,000 transferred to Bureau of Standards for research work in the fiscal years 1936
and 1937. respectively, and $301,156.25 and $323,999.22 transferred to retirement fund in the fiscal years 1936
and 1937, respectively.
COMMITTEE ON ENROLLMENT AND DISBARMENT
The Committee on Enrollment and Disbarment is an administrative
and judicial body. I t has charge of the enrollment of attorneys and
agents for practice before the Treasury Department and conducts
hearings in disbarment proceedings. An attorney, not a member of
the committee, represents the Government before the committee.
All complaints are filed with the attorney for the Government, who
institutes proceedings in disbarment or suspension if the charges
warrant such action. The committee also issues licenses to customhouse brokers and makes findings of fact and recommendations to the
Secretary of the Treasury in proceedings for the revocation or suspension of such licenses.
The following statement summarizes the work of the committee for
the year 1937:
Attorneys and agents:
Applications for enrollment approved
i
Applications for enrollment disapproved
Formal hearings on applications
Applications withdrawn on advice of committee.
Complaints against enrolled persons:
Pending July 1, 1936....
Filed during the year
.
^.Number
3,421
62
9
191
-
-
Disposed of:
Dismissed
Dismissed with admonition...
Dismissed upon disciplinary action on another complaint
Disbarments
stricken from the rolls in the course of disbarment proceedings—
Suspensions
Reprimands
42
17
1
Pending June 30, 1937
---.
Charges made, names stricken from the rolls.
Cases of minor infractions of the regulations in which enrollees were given an opportunity to
show cause why proceedings should not be instituted
Customhouse brokers:
Applications for licenses approved...
Applications for licenses denied..
^
..
Licenses revoked
-License suspended.
..
•
Licenses canceled
.
...-....-..
Complaint dismissed
..-
59
4
4
2
8
4
4
2
31
11
29
72
19
3
1
19
1
141
REPORT OF THE SECRETARY OF THE TREASURY
Since the organization in 1921 of the Committee on Enrollment
and Disbarment, 47^103 applications for enrollment have been approved and 636 disapproved. One hundred ninety-three practitioners
have been disbarred from further practice before the Treasury Department, 132 have been suspended from practice for various periods, and
169 have been reprimanded.
FEDERAL ALCOHOL ADMINISTRATION i
The Federal Alcohol Administration is charged with preventing
certain trade practices on the part of alcoholic beverage producers,
importers, and wholesalers, with a view to the elimination of ^'tied"
retail outlets, commercial bribery, consignment sales, false or misleading labeling and advertising, bulk distribution of distilled spirits,
and interlocking directorates in the distilling and rectifying fields.
The Federal Alcohol Administration Act requires that all producers
(other than brewers), importers, and wholesale distributors of alcoholic
beverages secure permits from the Administration which are conditioned upon compliance with the provisions of the act, the twentyfirst amendment and its enforcing laws, and aU other Federal alcoholic
beverage laws.
During the year the Administration completed its task of issuing
labeling and advertising regulations and of issuing permits to persons
at that time engaged in the occupations specified.^ Applications for
permits on the part of persons entering these businesses and proposed
amendments to the regulations already issued are continually being
received and appropriate action is taken.
Permit Division
Under the terms of the Federal Alcohol Administration Act, 14,267
persons held on June 30, 1937, basic permits issued by the Administration.
The following statement summarizes the activities of the Permit
Division for the fiscal year 1937:
Permit activities fiscal year 1937
Wine
Warehousing
Distillers Rectifiers Importers producers
and botand
tling 1
blenders
Applications for permits:
Pending July 1,1936
Received
. . _.
Withdrawn
>.
Incomplete, closed
._
Denials after hearing
Denials in default of request for hearing
Permits issued after hearing
(included below)
Pending June 30, 1937
Permits:
Issued
-.
Canceled
. In effect June 30,1937
19
113
17
3
1
15
68
6
3
0
57
280
35
0
1
40
287
25
2
1
Wholesalers
Total
3
9
2
0
0
275
2 563
223
0
19
409
3,310
308
s
22
0
0
4
2
0
41
47
0
17
94
59
2 499
0
19
4
45
1
33
0
3
56
301
61
418
55
86
404
252
166
1 073
264
139
1,457
7
4
48
2 244
726
10 786
2,916
1,180
14,267
1 Warehousing and bottling permits issued to proprietors of bonded warehouses only. Such permits are
held also by all distillers and rectifiers.
2 Of the 499 distillers' basic permits, 97 merely authorize the operation under lease of existing distilleries,
and the remaining 402 permits cover actual authorized distilhng plants.
1 More detailed information concerning the activities of the Federal Alcohol Administration is contained
in the annual report of the Federal Alcohol Administrator.
16109—38-
-11
142
REPORT OF T H E SECRETARY OF T H E TREASURY
Approximately 1,000 applications for amendment of existing permits
were received and acted on during the year. Most of these amend-,
ments involved changes in trade or corporate names, or changes in,
the location of plants or businesses operated under basic permits.
Label Examination Division
In order to make certain that the labels upon alcoholic beverages
comply with the labeling regulations, the Federal Alcohol Administration Act requires that the labels upon all bottled distilled spirits
which are shipped in interstate commerce or imported into the United
States must be covered by certificates of label approval issued by the
Administrator. Similar certificates of label approval must be obtained
by importers, producers, blenders, and wholesalers of wine to cover the
labels upon wines imported or shipped in interstate commerce, and
by brewers or wholesa;lers of malt beverages shipping their products
into a State which has adopted the Federal labeling requirements.
Certificates of exemption from label approval are issued to cover the
labels upon wine or distilled spirits which are bottled within a State
for intrastate sale only.
Although these certificates had to be issued for all existing labels
prior to August 16, 1936, in the case of distilled spirits, and December
16, 1936, in the case of wine and malt beverages, on these dates all
applications for label approval had received appropriate consideration
in spite of the fact that approximately 36 percent of the labels submitted failed to conform to the regulations, necessitating revision and
resubmission for approval.
The following table presents the action of the Administrator on
applications for label approval for distilled spirits, wine, and malt
beverages, both domestic and imported, and certificates of exemption
from label approval during the fiscal year:
. . . .
, Label activities, fiscal year 1937
Total
Domestic
Certificates of approval issued
Applications for certificates of approval disapproved.
Certificates of exemption issued
Total
.-
70,632
14, 614
17,663
47,038
31,842
.1,114
1,701
656
0)
119,371
47,112
18, 677.
102,809
79,994
2,357
185,160
178
29
20
18,894
8,096
4,996
Imported
9,056
1,730
1,916
Certificates of approval issued
Certificates of limited approval issued 2...
Apphcations disapproved
Total.
Grand total...^._--..._..—.—.
—.
9^660
6,337
3,060
12, 702
19,057
; 227
31,986
115, 611
99,051
2,584
217,146
1 The regulations do not provide for the issuance of certificates of exemption from label approval for malt
beverages;
2 The certificates of limited approval were issued only for labels of distilled spirits and wine entered into
customs custody prior to the effective dates of the regulations. These certificates were issued for labels
not in exact conformity with the regulations, but only if such labels contained all the mandatory information required and did not include any information considered false or misleading.
REPORT OF THE SECRETARY OF THE TREASURY
143
The preceding figures do not include the many thousands of labels
submitted for informal comment in advance of the actual filing of
formal applications for approval.
Statistics and Reports Division
Monthly reports of operations are required from distillers, rectifiers,
importers, and from all bottlers of distilled spirits. The information
contained in these reports is compiled and statistical releases containing summaries thereof are issued from time to time by the Administration. Additional reports in connection with particular subjects
have also been required for the purpose of obtaining information to
be used in considering proposed regulations or proposed changes in
regulations.
Enforcement Division
During the year the Enforcement Division conducted 3,499 investigations. Of these investigations, 1,040 were made at the request of
the Permit Division and involved inquiries into the personnel of permit
applicants; and 2,459 were investigations of alleged violations of the
act. This situation shows considerable change from the preceding
fiscal year, when the large majority of investigations involved permit
applicants.
In connection with the enforcement of advertising regulations, the
Division reviewed more than 200,000 alcoholic beverage advertisements and took action on 2,937 individual advertisements involving
irregularities under the^ regulations. Only 74 field investigations
were required in connection with advertising.
Legal Division
The Legal Division, under the General Counsel for the Federal
Alcohol Administration, acts as legal adviser to the Administrator in
all matters pertaining to the Administration, in the holding of industry hearings, in the drafting of regulations pursuant to the act, in
interpretations relating thereto and in advising the industry in
respect to compliance therewith; prosecutes, on behalf of the Administration, all complaints issued against permittees for violations of the
conditions of their permits, and assists in the defense of all matters
involving litigation brought against the Administration or in its behalf;
reviews all correspondence of a legal nature; and prepares all rulings
and orders of the Administrator.
The Legal Division conducts all proceedings against permittees in
matters relating to applications for basic permits and to violations of
the act and regulations. The Administration's hearing ofl&cers hold
hearings from time to time throughout the country, and make finding of fact and recommendations to the Administrator in respect
to the cases under consideration. When exceptions to the findings of
fact made by the hearing officers are filed by permittees, such exceptions are argued and presented to the Administrator on behalf of
the Administration.
144
REPORT OF T H E SECRETARY OF T H E TREASURY
The proceedings before the Legal Division during the fiscal year
1937 are summarized as follows:
Proceedings on applications for pjermits:
Number
Notices of contemplated denial of basic permit applications
58
Orders denying applications for basic permits i
69
Orders granting applications for basic permits i
67
Orders dismissing proceedings on applications
28
Proceedings on applications pending
^
4
Proceedings for suspension of permits:
Orders institutmg suspension proceedings
96
Proceedings pending
68
Proceedings for annulment of permits: Orders dismissing proceedings upon surrender of permit
3
Offers in compromise:
Offers received 2
1,080
Offers approved by the Attorney General
878
Offers i)ending approval of Attorney General
202
Cases pending before Federal courtsCases pending in circuit courts of appeal
1
Cases pending in United States district courts
3
Cases referred to the Attorney General for prosecution
6
1 Includes orders in a number of proceedings closed during the fiscal year but instituted prior thereto.
2 Does not include 261 offers approved by the Attorney General during the fiscal year but submitted
prior thereto.
BU-REAU OF INTERNAL REVENUE i
General
Internal revenue collections.—Total collections of internal revenue
during the fiscal years 1936 and 1937 are shown in the following
summary, classified according to the administrative organization
responsible for the tax. A detailed statement of coUections appears
in table 9, page 358 of this report.
Summary of internal revenue "collections for the fiscal years 1936 and 1937
[On basis of reports of collections, see p. 296]
1936
General source
Income Tax Unit:
Corporation income t a x .
I n d i v i d u a l income tax
Excess-profits t a x . .
U n j u s t e n r i c h m e n t tax
D i v i d e n d tax i
Total
_ ,
Alcohol T a x U n i t :
Distilled spirits, i m p o r t e d , excise tax _.
Distilled spirits, domestic, excise t a x .
Distilled spirits, rectification t a x
• B o t t l e , container, a n d case s t a m p s . .
W i n e s , i n c l u d i n g fortifying b r a n d y
Floor taxes, spirits a n d wines ^i
F e r m e n t e d m a l t liquors, excise tax
Special or occupational taxes
Total
I
.
:.
Miscellaneous T a x U n i t :
C a p i t a l stock t a x . _
_ .
E s t a t e a n d gift t a x e s . . .
T o b a c c o m a n u f a c t u r e s tax
Sales taxes ( m a n u f a c t u r e r s ' excise taxes, admissions, c o m m u n i c a t i o n s , oleomargarine,
d o c u m e n t a r y s t a m p , etc.)
_
Silver bullion transfer tax
B i t u m i n o u s coal tax 3
A g r i c u l t u r a l a d j u s t m e n t taxes
Total
1937
$738,522,229. 75 $1,056,923,129. 52
674,416, 074.14 1, 091, 740,746. 47
14, 509, 290.47
25,104,607. 72
6,073, 361.02
398,790. 27
35, 581. 20
1,427, 846, 384. 63 2,179, 877, 415. 93
Increase or decrease ( - )
$318 400 899 77
417, 324, 672. 33
10, 595, 317. 25
6,073,351.02
- 3 6 3 , 209. 07
752, 031, 031. 30
19, 558,165.96
202,872,340. 44
7,881, 202. 76
8, 662,129. 03
10, 378,977. 71
66,941. 68
244,681,330.96
11,462,948. 66
605,464, 037.10
32, 236,773.87
241,812,130.10
11,035, 437. 67
10,491, 212.97
9,056,186. 20
653,158.68
277,455, 238. 78
11, 504,949. 00
694, 245, 086. 27
12,678. 607.91
38,939,789.66
3 154 234 91
1,829, 083. 94
-1,322,792.51
686, 217. 00
32,873,907. 82
42,000.44
88,781,049.17
94,942, 751. 74
378,839, 615.00
601,165, 728. 39
137,499,246.63
306, 647, 766.47
662,264,145. 22
42, 556,493. 79
- 7 3 , 291, 748. 53
51,088,416.83
638,850,072.88
686,188. 23
729, 217.68
. 71,637,206.70
1,686,849,680.62
617,392,635.64
633,712.38
78,542,662.76
—61 475 85
—729 217 68
- 7 1 , 637, 206. 70
26,477,824. 62
1, 613, 327, 505. 24
1 Tax on dividends declared between June 16 and Dec. 31,1933.
2 Floor tax on tax-paid stocks on hand Jan. 12,1934. Increase due to court decision on Pennsylvania
State stores.
3 The Bituminous Coal Act of 1936 was declared unconstitutional May 18,1936.
1 More detailed information concerning the activities of the Bureau of Internal Revenue will be found
in the annual report of the Commissioner of Internal Revenue.
REPORT OF THE SECRETARY OF THE TREASURY
145
Summary' of internal revenue collections for the fiscal years 1936 and 1937—Continued
1936
General source
Social Security Tax:
Social Security Act, title VIII taxes (Miscellaneous Tax Unit)
Social Security Act, title IX taxes (Income
Tax Unit)
Carriers Act taxes (Miscellaneous Tax Unit).
$48,278.74
Total
Total collections
1937
Increase or decrease (—)
$207,339,090.61
$207,339,090.61
58,119, 313. 68
286,903.55
58,119, 313. 68
238,624.81
48,278.74
265, 746, 307. 84
266,697,029.10
3,620,208,381.09
4,653,196,316.28
1,132,986,934.19
Refunds, drawbacks, and stamp redemptions.—During the year refunds of tax collections, together with interest, were made from the
following appropriations:
Refunding internal revenue collections, 1936 and prior years
$28,239,008.06
Refunding internal revenue collections, 1937 and prior years
4,014,795.00
Refunding processing taxes, title IV, Revenue Act of 1936 (transfer from exportation and
domestic consumption of agricultural commodities, Department of Agriculture, 1936-37). 6,817,458.32
Total, interest included
39,071,261.38
The following is a summary of the refunds, showing the number of
schedules and claims, the amount of refunds and repayments allowed,
and the total amount refunded, including interest, on each class of
tax during the fiscal year 1937, with a comparison of the totals for
the fiscal year 1936:
Number of schedules and claims, amount of refunds and repayments, and total
refunds, repayments, and interest, by class of tax, during the fiscal year 1937, and
totals for 1936
Number Number Amount of re- Total refunds,
of sched- of
and re- repayments,
claims funds
ules
payments
and interest
Class of tax
Bituminous coal__
Capital stock
Carriers Act.
Distilled spirits
Distilled spirits stamps redeemed
Distilled spirits drawbacks (141 certificates)
Estate. _.
Gift-.
Income
Legacy—
Miscellaneous..
Miscellaneous stamps redeemed..
Narcotics
Narcotic stamps redeemed
_
Sales
Silver
Silver stamps redeemed
Tobacco
Tobacco stamps redeemed
Tobacco drawbacks
^
.—
:..
Total income and miscellaneous internal reve^
nue
Agricultural adjustment taxes..
Grand total, fiscal year 1937
Fiscal year 1936:
Income and miscellaneous internal revenue
Agricultural adjustment taxes
Grand total, fiscal year 1936
119
61
134
121
1
- 711
399
4,661
1
62
66
30
30
109
1
4
10
29
12
1,603
4,803
118
4,411
3,867
578
1,009
662
162, 365
1
236
3,128
119
71
2,062
1
4
12
1,631
37
428. 66
195. 78
1, 471.92
339, 487. 26
290, 977. 29
142, 066. 21
2,097, 440. 88
247, 489. 36
18,014, 843. 26
10, 907. 70
98, 508. 71
186, 641.18
183. 90
374. 56
2,683, 472. 74
3, 611. 36
30.24
366. 60
1,245, 161.89
23, 621. 30
6,637
2,420
176,607
39,459
26,301,060. 59 32, 253,803. 06
6,817,468.32
6,817,468.32
8,967
216,066
33,118, 518.91
39,071,261. 38
6,296
2,173
201,865
46, 296
22, 376,870.84
9,058,403. 38
29,637,964. 42
9,063,866. 67
8,469
247,161
31,434, 274. 22 38, 701,820.99
$643, 583.40
420, 879. 49
1,513.19
365, 506.10
303, 876. 62
142, 056. 21
2, 376,750. 02
260, 410. 66
22,320, 784. 26
10, 907. 70
106, 236. 24
195, 693. 76
183. 90
374. 66
3,832, 417. 23
652. 82
30.24
373. 67
1,245, 161.89
23, 621. 30
146
REPORT OF T H E SECRETARY OF T H E TREASURY
If the tax refunds made during the fiscal year 1937 on account of
erroneous or illegal collections of internal revenue and agricultural
adjustment taxes and payments for drawbacks and redemption of
stamps, amounting to a total of $39,071,261.38 were deducted from
the gross collections of $4,653,195,315.28 the net collections for the
fiscal year 1937 would be $4,614,124,053.90. Gross collections, however, are used for comparative purposes in these reports.
Additional assessments.—The additional assessments resulting from
office audits and field investigations made during the fiscal years 1936
and 1937 were as follows:
Additional assessments during the fiscal years 1936 and 1937, by class of tax
Class of tax
1936
$351, 703,039. 65 $285,765,138.19
Income i
Miscellaneous internal revenue:
Estate
Gift
-Tobacco Sales
Capital stock
.
Liquors
Miscellaneous
1937
.
30, 049,823. 33
3,812,127.06
26, 281. 37
9, 871,695.82
1,299,424.99
13, 000,116.17
33, 746,866.93
--
.
..
Total miscellaneous internal revenue
Agricultural adjustmentSocial Security Act and Carriers Act
..
. .
Grand total
_.
66 964,968 59
7, 241, 234. 38
196,900.77
14, 776, 581.91
1, 661,601.08
8, 623,742.90
19,494, 654.35
91,806, 335. 67
10, 706,696.19
108,959,683.98
454, 216,071.41
399,448,702.63
4,723,880.36
1 Includes jeopardy assessments of $121,055,934.91 for 1936 and $32,865,136.42 for 1937.
Cost of administration.—The amount of $54,314,530 was appropriated for the fiscal year 1937 for salaries and expenses in connection
with the assessment and collection of internal revenue taxes and the
administration of the internal revenue laws. The expenditures and
obligations against this appropriation were $51,797,735, leading an
unexpended balance of $2,516,795. The expenditures do not include
amounts expended for refunding taxes illegally or erroneously collected
and for redeeming stamps. The cost of collecting a total of $4,653,195,315 during the year was $1.12 per $100, compared with $1.39 per
$100 for 1936.
During the year $10,500,000 was transferred from the Department
of Agriculture for salaries and administrative expenses in connection
with making refunds authorized by titles IV and VII of the Eevenue
Act of 1936. The amount expended and obligated from this fund
amounted to $2,881,094, leaving an unexpended balance of $7,618,906,
which is available for such salaries and expenses for 1938.
There was allocated during the year, to the Bureau of Internal
Revenue from funds appropriated in the Emergency Relief Appropriation Act of 1936, $3,769,176 for work relief projects to augment funds
allocated in the previous year. Obligations incurred during the year
for these projects amounted to $3,589,761.
Income Tax Unit
The work of the Income Tax Unit relates to the administration of
the internal revenue laws with reference to taxes on income, excessprofits of corporations, excess-profits on Navy contracts, unjust
147
REPORT OF. THE SECRETARY OF. T H E TREASURY
enrichment, and employers of eight or more under title IX of the
Social Security Act. All.income tax returns except those filed on
form.l040A are^ audited in the Unit in Washington. Returns filed
on form 1040A (returns of individuals reporting income, chiefiy from
salaries and wages, of less than $5,000) are audited in the collectors'
offices under the supervision of the Accounts and'Collections Unit.
Summary of work of the Income Tax Unit for the fiscal years 1936 and 1937
Number
Returns
1936
On hand in Washington and in the field at beginning of year L
Received during year:
... Reopened and amended
Original
. . _ _•
.
.'
'
.._.".
...
Total
....!.'
Closed during year: 2
Additional assessments except jeopardy:
Before final notice of deficiency
:.
After final notice of deficiency: 8
Agreement
.
.
Default
Total
Jeopardy assessments (subject to appeal)
Certificates of overassessment
No change
.:.
. _
..
..'.
..;
*.
190,599
2,410,083
2 600,682
2,960,779
. . . . .
162,389
211,717
. . . . .
3,862
9,062
2,633
6,978
175, 313
1,778
35, 393
2,694,689
221,328
1,422
46,668
2,137, 335
. ; . ; ; . : •-2,807,-1-73
2,406, 763
.
.
.
....
_.
:.^...-.
_•
94,942
2,668,073
2, 763,015
Not closed during year:
On hand for audit in Washington and in the field at end of year * .
Awaiting action of taxpayer after mailing final notice of deficiency
.'
Involved in appeals to Board on final 90-day notice of deficiency mailed
during year^._.^ r.
•
Total not closed
350,097
. 3,165, 409
_.
. . . .
402; 394-
--•— .
. . . .
Total to be disposed of-
T o t a l closed
'
1937'
360,097
2,842
636 630
2,829
6,297
4,667
358, 236
644,026
; 1 Excludes returns with respect to which final notices of deficiency (90-day letters) were mailed prior to
the beginning of the year.
2 Excludes returns closed through decisions of Board of Tax Appeals.
3 Includes some returns with respect to which final notices of deficiency (90-day letters) were mailed prior
to the beginning of the year.
.--...
. - .. ..._
,„
.. ....
. . . .
^ Excludes returns in transit.
Of the 2,410,793 returns examined and closed during the year,
1,913,432 were filed by individuals and partnerships and 497,361 by
corporations. Agreements were executed in 214,350 cases by taxpayers consenting to the immediate assessment and collection of
deficiencies. This represented 94.5 percent of the deficiency taxes
proposed for assessment and is the largest number closed by this
method in any year. This increase i|s the result of the adoption of the
new settlement policy.
Back taxes.—The additional revenue made available for collection
(exclusive of jeopardy assessments) was $242,761,873.77, compared
with $222,099,314.64 the previous year. The field forces of the
Income Tax Unit secured agreements to the assessment and coUection
of $96,394,759.08, of which $57,279,977.26 was immediately assessed
under the provisions of mimeograph 3552, while $185,481,896.51
was assessed after consideration in Washington.
148
REPORT OF THE SECRETARY OF THE TREASURY
The additional revenues are classified in the following table to show
the amounts involved as additional tax, interest, and penalty, and the
procedure involved in reaching a settlement with the taxpayers.
Additional revenue made available for collection during the fiscal years 1936 and 1937,
classified according to tax, interest, and penalty, and the procedure involved
1937
1936
Amount
Tax
Interest...
Penalty
.
.
.
_
Procedure involved in settlement:
Mim. 3562 i
Regular procedure:
Agreements executed by taxpayer without 90-day letters
Agreements executed by taxpayer subsesequent to 90-day letters
.
Appeals not filed within 90-day period
Assessments listed in appealed cases after
trial on the merits and decision by Board
of Tax Appeals, or upon stipulation before the Board of cases settled by Technical Staff and/or General Counsel
Total
-
Percent
of total
Amount
79.8 $194,623,385. 68
17.4
40, 785,041. 78
1.6
3, 432, 567. 60
$177,171,101.90
38,722,883.70
3,461,898.29
Total...
Rejected claims for abatement and credit
Total additional revenue ._.
Percent
of total
80.1
16.8
1.4
219,365,883.89
2, 743, 430. 76
98.8
1.2
238, 740,994.86
4,020,878.91
98.3
1.7
222,099,314.64
100.0
242,761,873. 77
100.0
49,179,528.06
22.4
57, 279,977.26
23.9
85,454,761.90
39.0
117,706,316. 26
49.3
5,411,974.49
21,763, 393.05
2.5
9.9
4,608,828.36
16,069,923: 61
1.9
6.8
57,546,236.39
26.2
43,186,960.47
18.1
219,355,883.89
100.0
238,740,994.86
100.0
1 The effect of mimeograph 3552 is to shorten the interest period when the additional tax is agreed to by
the taxpayer and field force. The above figures cover assessments made during periods June 1,1935, to
May 31,1936, and June 1,1936, to May 31,1937.
Additional taxes were also assessed under the jeopardy provisions
of the several revenue acts, as foUows:
Additional taxes assessed under the jeopardy provisions of revenue acts during the
fiscal years 1936 and 19S7 ^
1936
Under bankruptcy and dissolution procedure
Other jeopardy assessments
Total assessed
Interest
Penalties.
.
Grand total
.:
. . . $24, 204,941. 34 $8, 622, 704. 04
2 61,779,500.11 15, 735, 639. 66
_
.
.
...
.
1937
.
.
85,984,441. 45 24,368, 243. 60
22,068,820.42
4,442, 362. 31
13,002,673. 04 4,054, 530. 51
121,065,934.91
32,866,136. 42
1 The amounts shown may or may not represent taxes upon which collectors can proceed to immediate
collection since the.majority of jeopardy assessments are appealed to the Board of Tax Appeals.
2 Includes $54,165,606.50 that was assessed against one large taxpayer and associated companies under
section 273 of the Revenue Act of 1928 due to the pendency of reorganization proceedings under section 77 (b)
of the National Bankruptcy Act, as amended.
Claims and overassessments.—The following table shows the number
of claims adjusted and certificates of overassessment issued, together
with the amounts of overassessment involved, during the fiscal years
1936 and 1937:
REPORT OF THE SECRETARY OF THE TREASURY
149
Claims adjusted and overassessments determined during the fiscal years 1936 and 1937
1936
Number
22,838
42,406
472
Claims:
Pending at beginning of year
Filed during year . .
..
Received from other sources
..
Total to be adjusted
Allowed in full or in part
Rejected
Total adjusted
. . . .
Pending at end of year
Certificates of overassessment issued when no claims had been filed
Overassessments settled b y Abatement
.. . ... .
Credit
Refund
Total
Interest
..
Grand total
.-
. . . .
. . .
1937
Number
26,605
36,742
3,283
65,716
66,630
28,497
10, 614
30, 546
11, 568
39, 111
42,113
26, 606
24,973
24, 517
33, 706
Amount
Amount
$70,145, 557. 29 $116,024,168. 48
17, 918,052.13
10, 777,096. 33
18,014,843. 26
15, 633, 270. 40
96,455, 924.02
5, 864, 607. 41
151,957,063.87
4, 305, 941.00
102, 320, 531. 43
156,263,004.87
The amount involved in claims filed during the year 1937 was
$81,264,584.17, compared with $107,916,884.62 the preceding year.
Of the claims adjusted during the year, the amount rejected totaled
$132,928,177.19, compared with $102,497,808.47 the preceding year.
There were also allowed 14,198 coUectors' claims, of which 12,247
recommended abatements or credits and 1,951 recommended refunds.
These claims were largely multiple item claims or claims for refund to
numbers of taxpayers, and involved 29,047 items for abatement or
credit and 122,976 items for refund. These adjustments result usually
in consequence of mathematical errors made in the preparation of
returns by taxpayers.
Final notices of deficiency {90-day letters).—During the year, 11,989
final notices of deficiency were mailed to taxpayers, compared with
17,212 the previous year. The large number in 1936 was due to the
fact that the statute for 1933 returns expired, and the Bureau was
forced to take immediate action with respect to a large number of
cases in which negotiations for adjustment had been pending.
Petitions were filed with the Board of Tax Appeals in 4,567 cases
iavolving 38 percent of the returns with respect to which 90-(iay letters
had been issued. The following table shows the number of returns by
tax years involved in petitions filed with the Board of Tax Appeals
during the fiscal years 1936 and 1937:
150
REPORT OF THE SECRETARY OF THE TREASURY
Number of petitions filed with the Board of Tax Appeals during the fiscal years 1936'
and 1937, by tax years
T a x year
1936
1917.
1918
1919
1920
1921
1922
1923
1924
1926
1926
1927
. .
Tax year
1937
8
7
7
13
16
33
37
56
66
69
95
13
7
9
10
10
20
29
37
40
45
59
1928
1929
1930
1931
1932
1933
1934
1935
1936
1936
. . . .
Total
.
1937
180
209
272
530
1,369
2,213
126
2
97
165
170
, 269
684
1,315
1,465
228
6
6,297
4,667
Returns.received, closed, and pending.—The following table shows, by
tax years, the.number of returns received and closed during the fiscal
years 1936 and 1937 and the number pending at the beginning and
close of each year:
Number of returns received and closed during the fiscal years 1936 and 1937, by
tax years
T a x year
1917
1918..
1919
1920
1921
19221923.
1924
1926
1926..
1927
1928
1929
1930
1931
1932
1933
On h a n d
J u l y 1,
1935
Received
during
1936
Closed
during
1936
On h a n d
J u n e 30,
1936
Received
during
1937
Closed
during
1937
On hand
J u n e 30,
1937
167
119
125
163
146
209
232
281
352
435
507
823
2,214
2,993
4,662
13, 643
339, 235
58
109
121
172
163
198
304
402
670
746
980
1,322
1,884
2,476
3,170
9,315
72,954
• 146
159
162
220
204
277
387
526
718
964
1,151
1,628
2,936
3,929
6,636
18,729
397,193
80
69
84
115
106
130
149
167
204
226
336
517
1,162
1,539
2,096
.4, 229
14,996
118
104
133
233
179
201
323
367
496
634
773
1,031
1,702
2,295
2,452
4,529
11,660
96
103
138
241
170
213
334
362
488
684
772
1,109
2,061
2,822
3,306
6,658
21, 744
102
70
79
107
114
118
138
162
212
276
337
439
803
1,012
1,243
2,100
4,912
Total
366, 206
36,188
94,942
1,446, 970
1, 216, 730
434,964
1,359, 406
1, 016, 579
26,194
123, 752
200,151
27, 230
163,369
1, 213,894
1,192,833
41, 200
261, 803
1, 269, 686
838, 204
12, 224
25,318
144,459
354,629
G r a n d total
402,394
2, 758, 642
2,810,939
360,097
2,697,326
2, 410, 793
636, 630
.
1934
1935
1936
Keturns pending for the tax years 1917 to 1934, inclusive, are considered prior year returns. The work of examining returns for 1934
and 1935 was practically completed on June 30, 1937. As a result
of expediting administrative procedure with respect to handling the
1936 returns, 353,815 such returns have been referred to the field for
examination.
Audit in Washington.—The following table presents an analysis of
the returns, original and reopened, pending in the various divisions of
the Washington office on June 30, 1937:
151
BEPORT OF THE SECRETAEY OF THE TREASURY
Number of original and reopened returns under consideration in Washingt^on, June
SO, 1937, by tax years
A u d i t divisions
Individual
returns
T a x year
Corporation
returns
Consolid a t e d returns
Conference
division
Special
ada n d valuat i o n divi- justm
ent
sion
division
Orig- Reo- Orig- Reo- Orig- Reo- Orig- Reo- Orig- Reo- Reoinal pened inal p e n e d inal pened inal p e n e d inal p e n e d pened
1917
1918
1919
1920
1921
_ .
.
Total
1922
1923
1924
1925.
1926.
1927
1928
1929
1930
1931
1932
1933..
1934
. .
Total
Total
Grand
tal
2
4
4
4
4
66
18
14
14
14
.23
22
49
47
87
134
201
372
955
936
6,113 2,867
2
12
17
53
498
6,631
1935
1936
7
17
11
17
14
25
9
12
12
14
1
2
2
5
3
72
13
......
3
3
24
77
638
6
7
8
9
16
12
22
18
60
126
136
1
1
3
6
6
11
14
19
27
41
113
225
2,521
15
1
19
24
23
23
6
3
29
3
63
47
16
68
24
82
67
107
164
229
493
143 1,139
2
2
2
1
6
2
11
4
6
9
17
18
19
40
30
58
43
95
40
196
77
324
29 3,296
862 1,898
284 4,044
I
--
T o tal
Orig- Reoinal p e n e d
2
3
3
3
2
44
21
28
42
49
81
66
60
83
86
13
184
366
2
49
2
67
4
66
83
9
118
16
132
23
167
35
313
78
331
124
329
213
429
640
643 1,617
634 13,126
85
98
123
156
197
239
320
602
620
712
1,060
2,061
1,960
435 3,261 16,787
8,122
3
4
11
13
15
14
20
24
36
39
52
121
84
746
423 2,986
10,706
474
693 1,443
36
138
102 2,626
82
8
80
6
.339
4
10 1,827
9
11
1
659 16,940
66
707
1,455
107
11,180
729 1,681
110 2,707
86
343
10 1,836
12
616 17,647
1,562
661 6,693 1,020
2,241
307 5,880
to17, 293 3,662 2,327
460 4,050 33,434 10,060
Audit in the field.—During the fiscal year, 771,626 returns were sent
to the field divisions which, with the 387,762 on hand at the beginning
of the year, made a total of 1,159,388. Of this number, 666,242 were
disposed of, leaving a balance of 493,146 returns pending June 30,
1937. Of the returns disposed of, 427,559, or 64 percent, were investigated, 165,301 were returned to Washington without examination,
and 73,382 were transferred to other divisions or to collectors' oflices
for investigation.
Changes in tax liabUity were recommended by the field forces in
248,643, or 5S percent, of the returns audited. In 213,894, or 86
percent, of the changed returns, taxpayers reached agreements with
the field agents, consenting to the immediate assessment and collection of deficiencies amounting to $96,394,759.08, the largest annual
total in agreed tax ever obtained by the field forces.
Total deficiencies recommended by the field forces amounted to
$348,666,449.57, and overassessments recommended amounted to
$20,381,700.86, leaving net deficiencies of $328,284,749.71.
Unjust enrichment tax.—The duty of administering the unjust
enrichment tax under title III of the Revenue Act of 1936 was assigned
to the Income Tax Unit. This title imposes a tax of 80 percent on
the net income from certain specified sources.
During the year there were 16,838 unjust enrichment tax returns
filed. The returns for taxable years ended prior to June 22, 1936, the
152
REPORT OF THE SECRETARY OF THE TREASURY
date of the enactment of the Revenue Act of 1936, were due to be
filed on or before September 15, 1936. However, a blanket extension
was granted taxpayers under which the due date was December 15,
1936, and collectors were authorized to grant extensions, when requested by taxpayers, to March 15, 1937. Congress later enacted
Public Resolution No. 12, approved March 13, 1937, authorizing the
Commissioner to extend the time for filing unjust enrichment returns
to June 15, 1937.
Approximately 170 injunction suits challenging the constitutionality of the tax on unjust enrichment, and seeking to enjoin the collectors from demanding returns and from assessing and collecting the
taxes were instituted in the various United States district courts.
About 55 percent of the returns filed show no tax liability. A
considerable number show taxable income but no computation is
made of the tax liability and on the face of the return no tax liability
is admitted. Failure to admit and pay tax on the income shown in
the return is based mainly on the challenge of the constitutionality of
the tax, a claimed liability to reimburse vendees, or the statement
that the method of computation required by the law and regulations
does not reflect the true facts. In a considerable number of returns
the taxpayers furnished only meager information, and faUed to make
the computations required by law.
Of the approximately 17,000 unjust enrichment tax returns filed,
it is estimated that approximately 90 percent of the revenue expected
to be derived from this source wUl come from probably less than a
thousand of the larger processors and their vendees to whom reimbursements were made on account of the processing taxes. Many of
these processors in filing their returns challenged the constitutionality
of the tax, and contended that the computations required by the law
do not reflect the actual facts.
Social Security Division.—This Division is charged with the administration of title IX of the Social Security Act, relating to the excise
tax on employers of eight or more, which became effective January 1,
1936. The Division maintains contact with and operates in cooperation with the Social Security Board, the Social Security Division of
the Miscellaneous Tax Unit, and other oflices of the Bureau.
The tax for each calendar year is due on January 31, following the
close of the year, unless an extension is granted under the provisions
of section 905 (b) of the act. Pursuant to such provision the returns
and tax payments for the calendar year 1936 were due April 1, 1937.
There were 264,983 returns filed during the fiscal year. Collections
amounted to $58,119,314.
Technical staff
The primary purpose of the technical staff is to afford the public a
more direct and expeditious procedure for the settlement of its tax
disputes. Under the procedure of the staff, the senior technical
adviser is responsible for the supervision of the basis of settlement in
particular cases and reports directly to the Commissioner of Internal
Revenue.
On July 1, 1936, the staff had on hand 4,072 income and estate tax
dockets pending before the United States Board of Tax Appeals,
together with some miscellaneous work and 90-day status cases.
During the year the staff received 4,331 Board dockets and settled by
REPORT OF THE SECRETARY OF THE TREASURY
153
agreement 1,536 dockets; recommended for defense 1,297 dockets;
and was required to return for various reasons 1,357 dockets to the
ofl&ce of the Chief Counsel prior to completion of staff consideration
and with no recommendation. On June 30, 1937, the staff had on
hand 4,213 income and estate tax dockets, with a small volume of
miscellaneous and 90-day status cases.
The 1,536 dockets settled involved asserted deficiencies of $19,801,-.
230.76; the agreed settlement deficiencies aggregated $8,920,835.73,
or 45 percent.
In addition to the foregoing, the staff considered to a conclusion
38 dockets involving accumulation of surplus to evade surtaxes, of
which 27 were settled by agreement and involved asserted deficiencies of
$4,502,454 and agreed settlement deficiencies of $1,322,420.06. There
were also two such cases considered in the 90-day status, presenting
asserted deficiencies of $608,923.92, which were settled for $318,307.94.
In the 922 income and estate tax cases considered by the staff
within the 90-day period, 277 were settled by agreement; 273 were
disposed of with no petition filed, the entire amount shown in the
deficiency notice being assessed and made available for collection;
and 372 were appealed to the United States Board of Tax Appeals.
The statutory deficiency notices in the 550 cases, settled or disposed
of with no petition filed, proposed deficiencies totaling $1,611,573.79
and the recomputed deficiencies assessed totaled $1,180,410.58.
On July 1, 1936, the staff also had on hand 682 compromise cases,
and during the year received 1,236 cases and disposed of 1,235 cases,
leaving a balance of 683 cases on June 30, 1937. The procedure
recently perfected for holding hearings in the field on compromise
cases has proved both expeditious and effective.
There were seven extension of time cases on hand July 1, 1936;
during the year 203 cases were received and 183 cases were disposed
of, leaving 27 on hand on June 30, 1937.
There were 25 final closing agreement cases on hand for review
July 1, 1936, 167 cases were received and 165 were disposed of
during the year, leaving a balance of 27 cases on June 30, 1937.
The total number of all classes of cases considered to a conclusion
by the staff on its own responsibility» during the year was 5,077.
However, this figure does not include the results of the circuit settlement groups composed of attorneys of the oflice of the Chief Counsel
and of members and field representatives of the technical staff.
During the year, there were 1,403 Board dockets settled under the
circuit calendar procedure, maldng a total of 6,480 cases in which the
staff participated.
Miscellaneous Tax Unit
The work of the Miscellaneous Tax Unit relates to the administration of all internal revenue taxes except the income and excessprofits taxes, the taxes applicable to alcoholic beverages, and those
imposed under title I X of the Social Security Act." The titles of the
respective divisions of the Miscellaneous Tax Unit indicate, in general,
the nature of the taxes administered in each division. The total
collections of miscellaneous taxes for the fiscal year 1937, excluding
taxes collected under the Carriers Taxing Act and title V I I I of the
Social Security Act, amounted to $1,613,327,505, compared with
$1,586,849,681 for 1936, an increase of $26,477,824.
154
REPORT OF T H E SECRETARY OF T H E TREASURY
Estate Tax Division.—Collections of estate tax for the year amounted
to $281,635,983, which represent the largest collections on record from
this source. The collections exceeded those for 1936 by $62,855,230.
The collections of gift tax amounted to $23,911,783, compared with
$160,058,761 for the previous year, a decrease of $136,146,978. This
large decrease is accounted for by the fact that the collections in 1936
included the tax on large transfers of gifts made prior to the effective
'dates of the increased rates under the Revenue Acts of 1934 and 1935.
In addition to the amounts actually collected, deficiencies in estate
and gift taxes amounting to approximately $28,000,000 were asserted
in 437 cases, and assessment and collection of these deficiencies were
withheld pending adjudication of appeals filed with the United States
Board of Tax Appeals.
During the year 15,244 estate tax returns were received in the Bureau, compared w^ith 13,252 returns for the preceding year. This
increase of approximately 15 percent in returns filed is attributable
largely to the lowered exemption of $40,000 provided in the Revenue
Act of 1935, the effect of which became apparent in December 1936.
The number of gift tax returns filed was 17,046, compared with 22,590
in 1936, a decrease of approximately 25 percent.
The administrative work in connection with estate tax and gift tax
returns is summarized in the following table:
Number of estate tax and gift tax returns investigated and audited during the fiscal
years 1936 and 1937
Estate tax
Gift tax
1936
1937
3,635
11,967
4,454
13, 600
902
1,373
272
2,664
15,592
11,138
18,054
11, 576
2,275
2,003
2,936
1,991
4,454
6,478
272
945
9,693
13,252
227
9,290
15, 244
309
2,930
22, 690
452
12,732
17,046
862
23,172
13,882
24,843
13, 634
26,972
13, 240
30, 640
21,494
9,290
11, 309
12, 732
9,146
486
2,315
421
2,443
82
436
149
1,093
Total to be disposed of
Disposed of
2,801
2,380
2,864
2,210
618
369
1,242
968
On hand at end of year
421
654
149
274
Returns in field:
On hand at beginning of year
Received for investigation.. .
Total to be disposed of
Major reports submitted by field force
On hand at end of year .
.
•Returns in Bureau:
On hand at beginning of year
Received .
. .
Reopened
.
. .
. . .
..
. . . . .
Total to be disposed of
Disposed of
On hand at end of year . . .
Protest letters of taxpayers as a result of tax determined by
audit:
On hand at beginning of year
Received..
. .
. . .
.
.
1936
1937
The estate and gift taxes refunded amounted to $2,637,161, which
included interest of $292,230. Of the amount refunded, $621,186 was
the result of judgment claims filed in 16 cases.
J The table which follows presents a summary of the action taken in
connection with estate and gift tax claims received and disposed of
during the year:
155
EBPOKT OF T H E SECRETARY OF T H E TREAStTRY
Estate tax and gift tax claims on hand, received, and disposed of during the fiscal year
1937
E s t a t e t a x claims
Abatement
Refund
Number
Claims filed:
• On h a n d J u l y 1,1936.
Received
.
Reopened
Amount
151 $1, 674, 639. 60
636 4,372, 709. 34
81,136.81
16
T o t a l to b e disposed of
Gift tax claims
Refund
Number
Abatement
Number
Amount
9
297
$39, 614. 36
7,104,182.49
64 $3, 722,960. 62
262 3, 308, 642.60
30 $33,544.11
Amount
NumAmount
ber
801
6,128,384.76
306
7,143, 696.86
326
7,031, 603.02
30
33,644.11
425
112
1,507,887.76
1, 253, 023. 32
298
1
7,127,814. 59
55.32
119
68
103, 620.16
506, 216.16
29
1
29, 538.08
4,006.03
T o t a l disposed of..
537
2,760, 911. 08
299
7,127,869.91 . 187
609, 836. 32
30
33,644.11
On h a n d J u n e 30, 1 9 3 7 . . .
N o claims filed, overassessments allowed
Interest allowed
. .
264
3,367,473.67
7
15,826. 94
139
6,421,766.70
684
589,663.12
279,309.14
189
3,116,809.61
443.
143,869. 20
12,921.20
25
39, 550.43
487 10, 244,624.10
662
260,410. 66
54
69,088.51
Allowed.
Rejected
Total
allowed,
including interest
1,009
2,376, 760. 02
Tobacco Division.—Collections of tobacco taxes for the year
amounted to $552,254,145, which is the largest annual collection from
this source since these taxes were first imposed.. The collections show
an increase of $51,088,417 over those for the previous year.
A detailed comparison of the tobacco taxes collected during, the
fiscal years 1936 and 1937 is as follows:
Tobacco taxes collected during the fiscal years 1936 and 1937
Increase or decrease ( - )
1936
Source
1937
Amount
Cigars (large):
Class A
Class B
Class C
Class D
Class E
Total
Cigars (small) .
Cigarettes (large)
Cigarettes (small)
.
. . .
.
Tobacco, m a n u f a c t u r e d
Snufl
.
-..-
Total
Leaf tobacco sold.-,
Cigarette p a p e r s
Cigarette t u b e s
-
..
G r a n d total
-
$696,144. 83
- 1 8 , 1 6 8 . 60
299, 692. 29
31, 631. 31
9, 908.11
Percent
$9,041,160.50
180,367. 64
2, 536, 785. 53
410,867. 06
69,570.96
$9,737, 305. 33
162,198. 94
2,835,477.82
.442,498.37
69,479.07
12, 227, 751.59
13, 246,959. 63
1, 019,207.94
8.3
133, 243. 93
18, 784.45
425, 486,470.87
144,866. 37
19,237. 66
476,027, 206. 64
11,622. 44
453. 20
50, 640,735. 77
8.7
2.4
11.9
66,412, 769. 68
6,603,039.32
66,037,641. 28
6,659, 608.89
-375,218. 40
56,469.67
—.7
.9
62, 016,799. 00
61,697, 050.17
-318,748.83
-.5
1, 664. 71
1,268,950. 98
13,072.86
2,447.87
1,103,114.59
.
13,262.40
793.16
-166,836. 39
189.64
47.9
-13.1
1.4
601,166,728.39
552,254,145. 22
61,088,416.83
10.2
7.7
-10.1
11.8
7.7
16.6
156
REPORT OF T H E SECRETARY OF T H E TREASURY
Bituminous Coal and Silver Tax Division.—The Bituminous Coal
and Silver Tax Division is concerned with the administration of the
taxes imposed under the Bituminous Coal Act of 1937 and the SUver
Purchase Act of 1934; and with the adjustment of claims filed for
refund of the tax collected under the Bituminous Coal Conservation
Act of 1935, which was declared unconstitutional by the United States
Supreme Court.
The Bituminous Coal Act of 1937 was approved April 26, 1937, and
the taxes imposed thereunder became effective June 21, 1937. The
act imposes ah excise tax of 1 cent per ton on coal sold or otherwise
disposed of, and an additional excise tax of 19K percent of the sale
price at the mine of coal disposed of by nonmembers of the Bituminous Coal Code under specified conditions.
The Silver Purchase Act of 1934 imposes a tax equal to 50 percent
of the net profit realized on the transfer of an interest in silver bullion,
with certain exemptions and rights of abatement. Collections of
silver tax for the year amounted to $633,712, as compared with
$685,188 for the previous year.
Sales Tax Division.—The collections from taxes administered by the
Sales Tax Division amounted to $617,361,374, an increase of $78,526,033 over the collections for the preceding year. The increase in
collections is reflected principally in the manufacturers' excise taxes;
the taxes on telegraph, telephone, cable, and radio communications and
faculties; admissions; electrical energy; and the taxes on the processing
of coconut and other oUs.
A comparison of the collections for the fiscal years 1936 and 1937 is
shown in the following table:
Collections of taxes administered by the Sales Tax Division during the fiscal years
1936 and 1937
Source
Documentary stamps:
B o n d s of i n d e b t e d n e s s , capital stock issues, etc
C a p i t a l stock sales or transfers
...
Sales of p r o d u c e (future delivery)
P l a y i n g cards
Total....'
Increase or
decrease (—)
1936
1937
$28,162, 658,42
33,054, 798.14
2,943, 542. 37
4,143,698.44
$28, 651, 710.11
31, 350, 597.49
5,096,813. 70
4,186,602.43
$489,051. 69
—1 704, 200 65
2,153, 271.33
42, 803.99
68, 304, 697. 37
69, 285, 623.73
980, 926.36
Oleomargarine:
Colored
Uncolored
Special taxes
56, 307. 20
916, 690.68
1, 231,806.13
67,951. 01
967, 635. 66
1,312,828. 67
11 643 81
51,944.98
81 022 44
Total
2, 203, 804.01
2,348,415. 24
144, 611. 23
4, 664.11
6.973. 51
5, 582. 69
148.40
3,919.73
7,100.95
.6,106.74
—744 38
1 127 44
524 15
— 148 40
16,368. 61
17,127.42
758 81
349,080,335.31
9,793,995.42
33,675,179. 25
19,805,609.38
1, 292, 738. 27
1,997, 409. 57
413,769,897.34
11,244,095.87
35,974, 552. 33
23,099,974. 69
1, 469,652.28
2,039,714. 37
64,689,562. 03
1,450,100.45
2,399,373. 08
3,294,365.31
176,914. 01
42,304.80
416,645,267.20
487,597,886.88
72,052, 619.68
Adulterated butter
Renovated butter
M i x e d flour
Filled cheese
Total
M a n u f a c t u r e r s ' excise taxes (title I V , R e v e n u e Act of
1932, as a m e n d e d )
T r a n s p o r t a t i o n of oil b y p i p e line
.
Electrical energy
T e l e g r a p h , telephone, cable, a n d radio messages, etc
Leased wires, etc. (telegraph a n d telephone)
Safe deposit boxes
.
Total
157
REPORT OF THE SECRETARY OF THE TREASURY
Collections of taxes administered by the Sales Tax Division during the fiscal years
1936 and 1937—Continued
Source
1936
Admissions
Dues and initiation fees
1937
$17,112,175.46 $19,740,191. 78
6, 090,923. 21
6, 287, 768. 24
Total
Pistols and revolvers
Narcotics
Delinquent under repealed laws
Total
Coconut, etc., oils processed
. .
Crude petroleum processed, refined, etc
National Firearms Act
....
Total-.
Other miscellaneous receipts
Grand total
._
:
Increase or
decrease ( - )
$2, 628,016. 32
196,846. 03
23, 203, 098. 67
26,027,960. 02
2, 824, 861. 35
60, 627. 64
554, 028. 39
1 87, 271. 57
109,180.05
673, 492. 81
a 814,814. 92
48, 552. 41
19 464 42
727, 543. 35
701,927. 60
1,497, 487. 78
795, 560.18
27,691,080. 79
1,163,754. 57
5,341. 72
29,688,239.18
894,182. 66
4,450.93
1,997,158. 39
—269 671 91
—890 79
28,860,177. 08
30, 586, 872. 77
1,726, 696. 69
14.732.34
31,261. 80
538,860,072.88
617,392, 635. 64 .
16, 529.46
78, 542, 562. 76
1 Includes taxes of $60,028.56 on soft drinks, $25,655.73 on checks, and $1,687.28 on yachts and boats.
2 Includes taxes of $727,700.13 on jewelry, $39,496.94 on candy, $38,653.04 on soft drinks, $8,220.99 on checks,
$654.89 on grape concentrate, and $188.93 on yachts and boats.
The claims for refund and abatement of taxes and for the redemption of stamps received and disposed of in the Sales Tax Division during 1936 and 1937 are shown in the following table:
Claims for refund and abatement received and disposed of during the fiscal years 1936
and 1937
Claims
1936
1937
On hand at beginning of year
Received or reopened
Number
5,296
13,959
Number
7.019
13,919
Total to be disposed of
19, 255
20,938
9,707
2,529
12,422
3,265
12, 236
15, 687
Allowed
Rejected
. . . . .
Total disposed of
On hand at end of year
._ .
Allowed
...
7,019
6, 251
Amount
$7, 396, 756.72
Amount
$11,922,348.63
A total of $1,000,021,751, representing 1,064,851 items, was approved by the Commissioner on the misceUaneous assessment lists,
which included original and additional assessments of all miscellaneous
internal revenue taxes, except sUver and social security taxes.
During the year, 13,092 field reports were received of which 12,999
were examined and closed; and 548,522 sales tax returns were received
and examined in the Bureau.
The number of offers in compromise submitted in settlement of
liabUities incurred m connection with sales, tobacco, estate, gift,
narcotics, capital stock, and miscellaneous stamp aiid special taxes,
and the aggregate amounts thereof, received and disposed of, are
shown in the following table:
16109—38-
-12
158
REPORT OF THE SECRETARY OF THE TREASTTRY
Offers in compromise received and disposed of during the fiscal years 1936 and 1937
1936
Offers in compromise
Number
Amount
Number
O n h a n d a t beginning of year.
Received d u r i n g year
6,837
12, 755
$640, 782. 66
. 440,976.00
3,973
10,461
T o t a l t o b e disposed of.
18, 692
1, 081, 758. 65
14,434
11, 641
3,029
49
204,690.15
373,107.94
27, 277.95
12,076
737
49
14, 619
605, 076.04
12,862
3,973
476, 682. 61
Accepted
Rejected
Withdrawn
T o t a l disposed of.
O n h a n d a t end of year
Amount
$476, 682. 61
668, 744.35
1,045,426. <
265, 335.44
119, 058. 61
277, 203.15
661, 597. 20
383,829.76
Capital Stock Tax Division.—The collections of capital stock tax
during the year amounted to $137,499,246, an increase of approximately 45 percent over the coUections for 1936. The Revenue Act
of 1935, as amended by the Revenue Act of 1936, allowed corporations,
in their capital stock tax returns due in July 1936, to redeclare the
value of their capital stock ais of the close of their last income tax
taxable year, which in the case of organizations operating on a calendar year basis is December 31, 1935. This privilege, combiued with
an increase in the rate of excess-profits tax applying with respect to
this capital stock declaration and to calendar year 1936 incomes
together with the prospect of increased future eamuigs resulting from
improvement in business conditions caused a substantial increase in
capital stock tax collections for 1937. During the year returns were
received as follows: 425,999 taxable and 131,410 nontaxable domestic
corporation returns, and 393 taxable and 504 nontaxable foreign
corporation returns, a total of 558,306.
The claims for refund and abatement of capital stock taxes, penalties, and interest received and adjusted in the Capital Stock Tax
Division are shown in the following table:
Claims for refund and abatement received and disposed of during the fiscal years 1936
and 1937
Claims
1936
1937
Number
Number
890
9,461
960
8,219
10,361
9,179
.
7,769
1,622
7,096
1,451
Totaldisposed of
9,391
8,647
On hand at ehd of year
960
632
Amount
$782,850.84
Amount
$567,434.99
On hand at beginning of year .
Received or reopened
Total to be disposed of..
Allowed
Rejected
.
.
Allowed
Processing Tax Division.—The Processing Tax Division is concerned
principally with the adjustment of claims for refund or payment
authorized under titles IV and VII of the Revenue Act of 1936.
159
REPORT OF THE SECRETARY OF T H E TREASURY
The following table shows the claims on hand at the beginning of
the year, those received and disposed of, and those on hand at the
close of the year:
Claims for refund and abatement received and disposed of during the fiscal year 1937
On hand July 1,1936
Number
Revenue Act of 1936:
Sec. 601
Sec. 602
Title VII
Abatement
Cotton Ginning Act
Tobacco Act
Potato Act
Other claims
.A-mouht
27,876
$4,650,737.16
29
44
1,132
104,309.96
48.117.92
54.660.93
23,030
337,013,411.30
52, 111 341, 871, 227.27
Total
Received
Number
Revenue Act of 1936:
Sec. 601
Sec. 602
Title VII
Abatement
Cotton Ginning Act
Tobacco Act
Potato Act
..
Other claims
Total
Amount
29,911
13,821
560
1
17
58
10
2
$6,827, 202.61
2,146,190.93
392,983.89
416.14
1,181.31
8,134.91
266.14
1,301.22
44, 380
8,377,676.15
Number
Amount
$3,082, 624.68
36, 408, 389.65
43, 304,196.61
792, 653.49
23,371.84
212,561.92
637.29
203, 628, 228.60
13,954
852
$3,187,711.86
109, 612.66
1
1
180.31
24.03
68, 230 287, 352, 563.88
14,808
3, 297, 528.86
11,406
39,423
9,409
7
184
2,677
14
6,210
Allowed
Number
Amount
Reopened
Rejected
Number
Amount
23,021
$4,879,269.11
8,206
4, 379,076.98
128
70, 200.26
35
896, 448.31
209
69, 779. 62
3,634
250, 943.98
4
371.16
24, 742 482,861,656.72
. 69,979
493, 407, 745.13
On hand June 30,1937
Number
Amount
304
18,248
8, 721
$214,601.88
29,992, 735.40
42,841,012.46
3
18
709.14
8,157.99
3,496
57, 678, 681.86
30,790
130,735,898.73
Social Security Division.—The Social Security Division of the Miscellaneous Tax Unit is concerned with the administration of the taxes
imposed under title VIII of the Social Security Act, which relates to an
income tax on employees and an excise tax on employers; and the
taxes imposed under the Carriers Taxing Act, approved August 29,
1935.
CoUections under title VIII amounted to $207,339,091. There were
5,970,261 returns filed in collectors' offices during the year.
Collections under the Carriers Taxing Act of 1935 amounted to
$286,904. Under this act 11,40.1 returns werefile^din collectors' offices
during the year. Collection of this tax from more than 400 taxpayers
was enjoined by the United States District Court for the District of
Columbia at the time of the first due date, June 30,1936. All of the
class I railroads and a number of their subsidiaries joined in this suit
and, as a result, collections under the act were greatly restricted.
The act of August 29, 1935, which would have terminated February
28, 1937, was extended to June 30, 1938, by Public Resolution No,. 9,
approved February 27, 1937. The act as extended was repealed by
the Carriers Taxing Act of 1937, approved June 29, 1937. The 1937
act, effective beginning January 1, 1937, imposes taxes similar to
those imposed upon employers and employees under the 1935 act.
160
REPORT OF THE SECRETARY OF THE TREASURY
Alcohol Tax Unit
Collections from the liquor taxes amounted to $594,245,086 in
1937, compared with $505,464,037 in the previous year, an increase
of $88,781,049.
On June 30, 1937, the following legitimate producers or distributors
of alcohol and alcoholic beverages, or users of tax-free alcohol, were
under the supervision of the Alcohol Tax Unit:
Distilleries:
Alcohol
Brandy
'.
Another
Bonded warehouses:
Alcohol
Internal Revenue..
Wineries
Bonded wine storerooms
Breweries
Rectifying plants
•_
Wholesale liquor dealers
_
Wholesale malt liquor dealers...
Denaturing plants...
Bonded dealers in specially denatured alcohol
Bonded manufacturers using specially denatured alcohol
Hospitals, laboratories, and educational institutions using tax-free alcohol..
Number
40
141
143
67
268
1,122
90
703
312
_. 5,450
12, 533
40
61
4,228
6,120
Enforcement Division.—The Enforcement Division is responsible for
the investigation, detection, and prevention of willful and fraudulent
violations of the internal revenue laws relating to distilled spirits,
wines, and fermented malt liquors.
During the year, 16,142 stills were seized, having an aggregate mash
capacity of 2,709,749 gallons, and in connection therewith 12,365,224
gallons of mash were seized and destroyed. The investigators also
seized 476,521 gallons of spirits and 4,463 automobiles and trucks.
The total appraised value of the property seized amounted to $3,965,360. Arrests were made of 29,477 persons for Federal liquor law
violations. There were 695 major conspiracy cases investigated, and
in 316 conspiracy cases terminated by court action 2,014 defendants
were convicted.
Field Inspection Division.—This Division is responsible for the
planning, coordination, and control of the inspection service of the
15 field districts. I t examines applications for the estabhshment of
industrial alcohol plants, alcohol bonded warehouses, denaturing
plants, rectifying plants, distilleries, and internal revenue bonded
warehouses; and reviews qualifying documents submitted in connection with the establishment of breweries and wineries.
There were 19,830 examinations of plats, plans, and other documents, and 62,338 inspections of plants and permittees made during the
year.
Laboratory Division.—The Laboratory Division comprises a central
laboratory in Washington, D. C , and 14 branch laboratories located
throughout the country, which perform the chemical work for the
Bureau of Internal Revenue and the Bureau of Narcotics. During the
year 75,005 samples were examined in the branch laboratories, compared with 73,831 for the previous year. The major part of the
samples examined were distilled spirits, fermented liquors, mashes,
denatured alcohol, toilet preparations, medicinal preparations,
flavoring extracts, rectified products, and narcotic drugs.
The Washington laboratory examined 8,880 samples, compared
with 11,398 during the previous year. The formulas of all preparations and processes using denatured alcohol are submitted to the
REPORT OF THE SECRETARY OF THE TREASURY
161
laboratory at Washington, D . C , for review and approval before permits are issued by the district supervisors for the withdrawal of
alcohol.
The Narcotic Section of this Division has revised and unproved a
method for identification of marihuana. Legislation is now before
Congress to control the growth and use of this plant.
Assessments.—During the year 10,666 reports of violations of the
internal revenue laws pertaining to alcohohc liquors by illicit operators,
and 1,259 reports of violations by estabhshed plants and qualified
dealers were received from the field offices and audited, and the tax
liabilities disclosed thereby were assessed, including ad valorem penalties. There were also certified to the Commissioner for assessment
44,549 items, totahng $8,623,742.90, hsted in the Bureau, and 181,600
items aggregating $57,086,121.33, hsted by collectors.
Offers in compromise.—On July 1, 1936, there were on hand 2,724
offers in compromise aggregating $115,282, and during the year
45,585 offers in compromise amounting to $691,633.89 were received.
Of the number to be disposed of, 662 were forwarded to the Department of Justice, 1,696 were returned to the field offices, 40,373 aggregating $563,887.49 were accepted, and 4,850 totahng $115,518.41 were
rejected.
Alcohol Tax Section of the office of the General Counsel.—This section
handles the legal work arising in connection with the administration
and enforcement of the internal revenue liquor laws.
During the year there were prepared 9,357 memoranda, 215 briefs,
4,305 opinions, 69 parole cases, 302 libels, and 36 indictments. Review
work included 7,390 case reports, 182 claims of over $5,000 each, and
45,891 compromise cases. In addition, 183 revocation cases were
handled, and 689 petitions for remission or mitigation of forfeitures
were examined and finally passed upon.
Office of the Chief Counsel
The activities of the office of the Chief Counsel for the Bureau of
Internal Revenue embrace the whole field of Federal taxation in connection with the preparation and presentation to the United States
Board of Tax Appeals of defense in all appeals; the review of refunds,
credits, and abatements in excess of $20,000; and the deciding and advising in various administrative and uiternal revenue tax matters referred by the Secretary, the Under Secretary, or an Assistant Secretary
of the Treasury, the General Counsel for the Department of the Treasury, the Commissioner or the assistant to the Commissioner, the heads
of the administrative units of the Bureau, collectors of internal revenue, other branches of the Government, and individual correspondence.
Also the preparation at the request of the Department of Justice or
of the United States attorneys of data for use in the prosecution or
defense of tax cases (civil and criminal) in suit, aiid otherwise complying with their request for assistance in such cases; and the preparation, revision, and publication of regulations. Treasury Decisions,
mimeographs, and rulings, for the guidance of the officers and employees of the Bureau of Internal Revenue and others interested.
The office is divided into six Divisions, viz. Appeals, Civil, Interpretative, Penal, Review, and Legislation and Regulations
Chief CounseVs committee.—The Chief Counsers committee, consisting of four members, serves in an advisory capacity to the Chief
162
REPORT OF T H E SECRETARY OF T H E TREASURY
Counsel, assistant to the Chief Counsel, general assistants and special
assistants, who refer to the committee cases from all divisions of theoffice. The committee considers these cases and makes written
recommendations as to their proper disposition. At the beginning of
the year the committee had on hand 17 cases;" during the year itreceived 307 and closed 311, leaving 13 cases pending at the close of theyear.
Reorganization Section.—The Reorganization Section is charged,
with the duty of protecting the interests and claims of the United
States in bankruptcy and receivership proceedings, including particularly proceedings instituted under sections 77 and 77B of t h e
Bankruptcy Act.
In the 782 corporate reorganization cases closed under sections 77
and 77B during the year, claims were filed in the amount of $9,903,603.06 and were settled for $3,300,912.97.
In the 1,153 cases closed relating to bankruptcy and receivership,
claims were filed in the amount of $7,109,927.31 and $1,819,904.34
was collected.
Appeals Division.—This Division has immediate charge for the
Commissioner of all cases involving income, excess-profits, unjust
enrichment, estate, and gift taxes filed before the United States Board
of Tax Appeals and all cases involving refunds of processing and related
taxes pending before the United States Processing Tax Board of R e view including those appealed to the appellate courts. The Division
prepares all of the pleadings in such cases and appears for and represents the Commissioner of Internal Revenue at the trial thereof.
Of the appeals taken to the United States Board of Tax Appeals and
the appellate courts there were 4,634 income tax, 249 estate tax, and
37 gift tax cases closed during the year. The methods by which such
cases were closed are as follows:
Disposition of cases closed before the United States Board of Tax Appeals during
the fiscal year 1937
Character of closing
Number
of cases
Amount in
dispute
Amount
allowed
Percentage of
recovery
Default
Decision on merits
Agreed settlement
296
1,017
3,607
$3,676, 348 $3, 500,720
8,977,294
28,145,330
100, 249,600 33,120,329
95.2231.90
33.0^
Total
4,920
132,071,178
34.53-
45, 598, 343
Civil Division.—This Division, in cooperation with, and at the
request of the Department of Justice, assists in the handling and preparation for trial of civil internal revenue cases arising in the Federal
district courts, the United States Court of Claims, and the Supreme
Court of the District of Columbia, together with a limited number of
cases originating in State courts. The trials of such cases and arguments upon appeals are conducted by the Department of Justice
with the assistance of this Division, pursuant to the President's
Executive order of June 10, 1933.
The Division's major activities during the year are shown in the
following tables:
163
•REPORT OF T H E SECRETARY OF T H E TREASURY
Cases received and disposed of during the fiscal year 1937 ^
Number
Pending July 1, 1936:
In court (exclusive of lien cases)
Not pending in court
Cases in court involving liens
Cases not in court involving liens
3,644
1,271
37
_
Total
6,241
Received during the year:
Suits by taxpayers
Suits involving liens
Cases for suit by the United States
Lien.cases not in court
935
1,030
205
444
Total
2,614
Total to be disposed of
Closed during the year:
Cases not involving lien cases
1,787
1,928
Cases involving liens..
3,716
Total
4,140
Pending June 30, 1937...
jl
1 Excludes bankruptcy, receivership, insolvency, compromise, and liquoi- cases
The amounts involved in the above cases are as follows:
Pending July 1, 1936
Received during fiscal year
Total
Closed during fiscal year
Pending June 30, 1937
$321,308,330.21
96,841,935.82
418,160,266.03
64,425,956.64
353,724.310.39
Results obtained in cases closed during the fiscal year 1937 ^
Number
of cases
Suits instituted by taxpayers
Suits and claims by the United States
Injunctions, processing ta^x^es .
Total
Amount
claimed
Recovered from Amount refunded
taxpayers
880
240
667
$36, 606,874. 24
4,265,168.41
23, 553, 912. 99
$1, 679, 609. 69
1,787
64,425, 966. 64
1,579,609.69
$3, 256,012.46
3, 256,012. 46
» Excludes bankruptcy, receivership, insolvency, compromise, lien, and liquor cases.
Results obtained in lien cases closed during the fiscal year 1937
Lien cases
Pending in court
Not pending in court
Total...
Number
of cases
1,491
437
Amount
collected
$308,827.90
167,055. 52
476,883.42
164
REPORT OF THE SECRETARY OF THE TREASURY
Number of civil cases pending at the beginning and end of the fiscal year 1937 '
Pending
June 30,
1937
276
854
For suit by the United States..
Involving liens
Pending:
In district courts
In circuit courts of appeals...
In Court of Claims
In Supreme Court
Payment of judgment claims.
State courts and miscellaneous.
Total
4,140
> Excludes bankruptcy, receivership, insolvency, compromise, and liquor cases.
The number of CivU Division cases tried by the Department of
Justice and the number decided by the courts during the year are
shown in the foUowing table:
Number of tax cases tried and decided by the Federal courts during the fiscal year 1937
Cases decided
Cases
tried
Court
District courts.
. .
Circuit court of appeals
Court of Claims
^^_
Supreme Court...
..
Total...
Partly for
For the Against and partly
Govern- the Gov- against the
ment
ernment
Government
Total
168
64
70
5
166
53
46
16
137
31
25
3
8
2
2
0
301
86
73
18
297
270
196
12
478
Compromise Section.—This section is charged with the prosecution
of claims filed by collectors (a) against the estates of deceased taxpayers; (b) against insolvent banks; and (c) in liquidation proceedings,
including assignments for the benefit of creditors.
Until June 29,1937, the section was also charged with the responsibility of considering all offers submitted in compromise of tax liability
arising in the Miscellaneous Tax Unit except those involving criminal
prosecution, fraud penalties, or specific penalties. Effective that date,
all miscellaneous tax cases, except those which involve (a) insolvent
banks, (b) liquidation proceedings including assignments for the
benefit of creditors, and (c) claims against decedents' estates, were
transferred to the Miscellaneous Tax Unit for disposition.
The following table shows the cases on hand at the beginning of the
year, those received and disposed of, and those on hand at the close
of the year:
Pending July 1, 1936
Received during year
.
Total
Closed or in process of closing
Pending June 30, 1937.
Amount finally collected by payment or acceptance of offers
Tax liability collected or compromised
Number
1, 681
1,714
3,395
1,460
._ 1,935
Amount
$3,977, 256
11,528,838
165
REPORT OF THE SECRETARY OF THE TREASURY
The number of cases pending June 30, 1937, and the tax hability
involved is shown in the foUowing table:
Number of cases pending and tax liability involved, June 30, 1937
Pending
Number
Decedent estates
Insolvent banks
Miscellaneous cases
Cash offers in compromise
Installment offers in compromise
. .
In process of closing
Liability
Number
1,270 $19,704,514
72
134,412
272 3, 597,806
240
2,310,919
81 1, 770,040
Total.
1,935
27, 517,691
Liability
98
39
$359,939
2, 553, 639
137
2,913, 578
Interpretative Division,—The function of this Division is to consider
for administrative purposes the various statutes relating to the internal
revenue, and to pass upon questions of law arising thereunder. The
Division also edits the material intended for publication in the '*Internal Revenue Bulletin'^ and reviews various material submitted for
consideration.
Penal Division.—The Penal Division considers both income tax
cases and miscellaneous tax cases, prepares opinions construing criminal and percentage penalty statutes, and deals with particular cases
involving criminal liabUity and percentage penalties for fraud (and occasionally for negligence or delinquency), including offers in compromise of such cases. Whenever requested by the Department of Justice,
an attorney from this Division assists in the prosecution of criminal
cases.
The foUowing tables summarize the work of the Division during the
last 2 years:
Number of cases received and disposed of by the Penal Division during the fiscal years
1936 and 1937
Cases
Pending at beginning of year
Received during year
Total to be disposed of
Disposed of
Pending at end of year
_.
. .
.
. . .
1937
1936
.
.
...
1,202
1,264
1,226
914
2,466
1,241
2,139
1,057
1,225
1,082
Number of claims for reward received and disposed of during the fiscal year 1937
Claims
Number of Number of
informal
formal
claims
claims
Pending at beginning of year
Received during year
303
118
74
111
Total to be disposed of
421
185
Allowed
Rejected
Total disposed of..
Pending at end of year
77
75
114
152
114
269
71
166
REPORT OF T H E SECRETARY OF T H E TREASURY
Review Division.—This Division reviews overassessments of income,
excess-profits, war-profits, estate, gift, and miscellaneous taxes proposed for allowance (also deficiencies when coupled with overassessments) where the amount of the overassessments in any case exceeds
$20,000, and proposed refunds of any tax in excess of $20,000. I t prepares reports to the Joint Committee on Internal Revenue Taxation
required by section 710 of the Revenue Act of 1928, where the overpayments of income, excess-profits, war-profits, estate, or gift taxes exceed
$75,000, and prepares public decisions where the overassessments
exceed $20,000.
The Division disposed of 326 cases during 1937, as shown by the
following summary:
Number of cases disposed of during the fiscal year 1937
Estate and
other miscellaneous taxes
351
293
_
389
326
63
On hand at end of year
Amounts involved:
Claimed by taxpayer
Approved by Review Division
Total
84
267
On hand at beginning of year
Received
Total to be disposed of
Disposed of
Income tax
$2, 285, 389. 30 $20,048, 412. 77 $22,333,802.07
1,195,081.14
12,390,131.17 13,685,212.31
Legislation and Regulations Division.—This Division prepares or
reviews regulations issued under the internal revenue laws, and makes
reports on legislation introduced in Congress affecting the internal
revenue, except as they relate to alcoholic beverage taxes.
There were 52 regulations issued during the year relating to income
tax in general, the social security tax, the tax on unjust enrichment,
the processing tax refunds, consolidated returns by raUroads, and the
Bituminous Coal Act. I t was also necessary to expand, supplement,
and revise existing regulations.
Intelligence Unit
The Intelligence Unit is principaUy concerned with the investigation
of cases involving alleged evasions of income tax; investiga,tions of
applications of attorneys and agents to practice before the Treasury
Department; and investigations of prospective appointees to the
Internal Revenue Service.
During the year, 884 investigations were made of alleged evasions
of income tax, resulting in the recommendation for prosecution in 202
cases, involving 295 individuals. There were 62 convictions on this
charge and 6 acquittals. Investigations of these cases resulted in the
recommendation for assessment of additional taxes and penalties
aggregating $26,702,728.32.^
^
^ ^ .
There were 3,934 investigations of applications of attorneys and
agents to practice before the Treasury Department and 84 investigations of charges against enrolled agents and attorneys, resulting in
the rejection of applications of 62, the disbarment of 8, the suspension
of 4, and the reprimand of 6.
REPORT OF THE SECRETARY OF THE TREASURY
167
The investigations in 126 cases of charges against employees of the
Bureau of Internal Revenue resulted in the separation from the service
of 103 employees and the prosecution of 11. Of the latter number 10
were convicted and 1 indictment was dismissed.
There were 3,751 cases of miscellaneous character investigated,
including investigations for the Bureau of Narcotics, the Customs Service, the Office of the Comptroller of the Currency, the Procurement
Division, and persons under consideration for appointment to various
positions in the Treasury Department.
Accounts and Collections Unit
The Accounts and Collections Unit is the central administrative
-organization for the 64 internal revenue collection districts and makes
the administrative audit of all expenditures for the Internal Revenue
•Service.
There were 15,257,987 tax returns filed in collectors' offices during
the fiscal year, compared with 8,429,852 filed during 1936, an increase
of 6,828,1*35. Of the total returns filed, 6,735,454 in 1937 were income
tax returns, compared with 5,813,499 in 1936, an increase of 921,955.
The remainder of the increase was in the number of returns filed under
titles V I I I and I X of the Social Security Act.
A total of 12,345,394,029 revenue stamps, valued at $1,180,122,453.59, was issued to collectors of internal revenue and the Postmaster
General during the year, . compared with 11,144,798,920 stamps,
valued at $1,050,861,227.34, issued during 1936. Revenue stamps
returned by collectors of internal revenue and by the Postmaster
General, and credited to their accounts, amounted to $32,136,111.04.
There were 301 applications allowed for restamping packages from
which the original stamps had been lost, mutilated, or destroyed, compared with 12 applications in the preceding year.
During the fiscal year, 68,910 income tax returns were investigated
by field deputy collectors and 8,627,518 information returns were
verified.. At the close of business June 30, 1937, there were outstanding in the 64 collection districts for field investigation, 8,487 income
tax returns, compared with 4,276 as of June 30, 1936. The number of
information returns on hand June 30, 1937, was 3,961,611, compared
with 2,943,999 on June 30, 1936. There were 53,270 warrants for
distraint in the custody of the collectors' field forces on June 30, 1937,
compared with 57,380, on June 30, 1936.
During the year 122,672 warrants for distraint were.served by
deputy collectors of internal revenue, which resulted in the collection
of $44,688,731. An average of 1,967 deputy collectors made a total
of 805,089 revenue-producing investigations, including the serving of
warrants for distraint, compared with 462,743 investigations made by
an average of 1,970 deputy collectors in the preceding year. The total
amount collected and reported for assessment by field deputy collectors was $77,660,684, compared with $79,066,410 in the previous year.
The average number of investigations made per deputy and the average amount of tax collected and reported for assessment were 409 and
$39,482, respectively, compared with 235 and $40,135, respectively,
in 1936.
_
^
'
During the year a new Division, known as the Social Security Tax
Division, was set up in each collector's office to handle the work in-
168
REPORT OF THE SECRETARY OF THE TREASURY
cident to the collection of taxes under titles V I I I and I X of the Social
Security Act.
Work relief projects
The work rehef projects administered by the Bureau of Internal
Revenue are under the supervision of the Accounts and Collections
Unit, the Income Tax Unit, and the Alcohol Tax Unit. The expenses
of these projects were paid from funds provided under the Emergency
Relief Appropriation Acts of 1935 and 1936, and the workers were
recruited and employed in accordance with the regulations of the
Works Progress Administration and the United States Employment
Service of the Department of Labor. All workers were paid the
security wage rates as stipulated in the Executive order of May 20,.
1935, and its amendments.
Accounts and Collections Unit (miscellaneous tax) project.—Beginning September 3, 1935, and continuing through June 30, 1937, a
survey of miscellaneous taxes was conducted in the field collection
service of the Bureau. This project was carried on under the direction of the collectors of internal revenue in 21 of the collection districts
in the United States and involved an intensive canvass to effect the
collection of delinquent and deficient stamp taxes and taxes on sporting goods, cosmetics, capital stock, candy, automobUe parts, admissions and dues, tires and tubes, matches, radios, electric refrigerators^
jewelry, and furs. The number of persons employed on this project
averaged approximately 1,550 weekly. During the fiscal year,
$1,932,780 was allocated to this project and obligations were incurred
to the amount of $1,900,173.92. During 1937, $10,281,087 of miscellaneous taxes were assessed or recommended for assessment, of
which $6,457,661 was coUected. From the beginning of this project
to June 30, 1937, investigations resulted in the assessment of
$24,192,894.01 and the collection of $9,869,138.11.
Income Tax Unit (income taxes\ project.—The Income Tax Unit
project conducted in 28 field divisions, involved the^ examination of
income tax returns which ordinarily would not receive an intensive
examination. Allocations to this project during the year amounted to
$803,748 and obligations of $670,708.31 were incurred. Employees
on this project handled 190,556 returns, of which 139,851 were accepted
as filed; and 46,422 additional assessments and 4,283 overassessments
were recommended. As a result of the inspection of these returns,
deficiencies amounting to $3,448,541.47 and overassessments amounting to $210,581.83 were recommended. Agreements were secured
covering $2,760,625.76 of the total deficiencies recommended. This
project was discontinued M a y 31, 1937.
Alcohol Tax Unit (retail liquor stores) project.—The inspection of
retail liquor dealers in various cities throughout the United States was
inaugurated September 1, 1935, for the purpose of seeing that retail
liquor dealers comply with the requirements of the law as it relates to
their business. During the year, allocations to this project amounted
to $1,032,648, and obligations were incurred totaling $1,018,879.24.
As a result of these inspections 39,916 dealers were found violating the
internal revenue liquor statutes. The total revenue coUected under
this project during the year amounted to $713,703.72.
REPORT OF THE SECRETARY OF THE TREASURY
169
LEGAL DIVISION
During the fiscal year 1937 the Legal Division prepared 88 formal
and numerous informal opinions for the guidance of administrative
officers of the Department and an index-digest of the opinions of the
General Counsel. Considerable progress was made in a study of
foreign tax laws, undertaken with a view to a series of publications.
The Division prepared or assisted in the preparation of approximately
35 legislative proposals necessary to or desirable for efficient operation
of the Department. Representatives of the Division frequently
appeared before congressional committees to explain the purpose,
effect, and legality of legislation affecting the Department. Assistance was rendered in the preparation of a large number di reports on
legislation, including Executive orders and proclamations.
In connection with monetary and public debt matters, the Division
drafted legislation, regulations, rulings, and opinions covering a
broad field of subjects, and made numerous interpretations of the
laws applicable to Government finance, public credit, fiscal relationships, bonds of indemnity, the insurance of valuables in shipments,
monetary and industrial transactions in gold and silver, the acquisition by the United States of monetary metals, protection of the dollar
in foreign markets, and transactions in gold and foreign exchange with
foreign governments and foreign central banks. Active assistance
was rendered to the Department of Justice in cases in various courts
involving questions of monetary policy, including 13 cases involving
gold coin, gold bullion, and newly mined gold; 41 cases involving
various so-called gold clause obligations; 1 case testing the constitutionality of the retroactive provisions of the silver profits tax; and in
a considerable number of cases involving civil and criminal penalties
in connection with the enforcement of the provisions of the Emergency
Banking Act of 1933 relating to gold and the Gold Reserve Act of
1934, and the various proclamations, orders, and regulations issued
thereunder. Under the Adjusted.Compensation Payment Act, the
Division recommended approval for settlement of 3,159 cases. A
compilation of Federal laws relating to the public debt and the currency was nearly completed on June 30, 1937.
With respect to the operations of the Coast Guard, the Legal
Division reviewed the proceedings and prepared the action of the
reviewing authority and pertinent correspondence in 480 court-martial
cases, 228 boards of investigation cases, 126 retiring-boards cases, and
14 lifesaving medal cases; and prepared the papers and all correspondence in connection with approximately 100 formal contracts and 109
renewals of leases.
A number of unusual legal questions on the enforcement of the
Federal narcotic drug laws were determined during the year; new
and amendatory legislation relative to the traffic in narcotics was
prepared for submission to Congress; several amendments to existing
narcotic regulations were prepared or approved after preparation
elsewhere; and assistance was extended to several of the States in
connection with the adoption and enforcement of the uniform State
narcotic drug law.
In addition to giving consideration to legal questions arising from
the reciprocal tariff bargaining program, the Division drafted revised
regulations made necessary by new customs legislation and changing
170
REPORT OF THE • SECRETARY OF THE TREASURY
conditions; examined several applications for licenses for foreign trade
zones; and devoted considerable attention to the application of countervaihng duties. A study was also made of the causes of, and the
remedies for, the congestion in customs protest litigation, insofar as
this concerned functions of the Treasury Department.
The Division did the legal work necessary to the acquisition of 324
sites for construction projects, examined more than 3,400 contracts
for the construction of public buildipgs and the purchase of supplies
and equipment, and approved approximately 800 leases for oflice space
for Government activities. Contracts were prepared for the sale of 46
surplus real properties.
With relation to the activities of the Public Health Service, the
Division drafted amendatory regulations intended to improve administration of quarantine activities and a regulation on the issuance of
transportation to voluntary patients discharged from the narcotic
hospital at Lexington, Ky., passed upon an experimental system of
'^radio pratique" at the New York Quarantine Station for certain passenger vessels, and continued the work of compiling State laws and
court decisions relating to public health matters.
In the field of taxation the Division handled 4,920 income, estate,
and gift tax appeals, involving $132,071,178, and prepared and reviewed 326 cases involving overassessments. The Division prepared
data for use by the Department of Justice in the prosecution or defense of 4,772 tax cases (civil and criminal) disposed of during the
fiscal year; handled the preparation and publication of more than 600
regulations. Treasury decisions, and rulings; and reviewed more than
1,900 cases involving offers in compromise and extensions of time to
pay tax, in addition to a large number of closing agreements. The
Division closed 782 reorganization cases arising under sections 77 and
77B of the Bankruptcy Act in which claims in the amount of $9,903,603.06 were settled for $3,300,912.97; and closed 1,153 bankruptcy
and receivership cases involving claims of $7,109,927.30 which were
settled for $1,819,904.34.
In connection with the work of the Alcohol Tax Unit, the Division
prepared or revised 9,357 memoranda, 215 briefs, 4,305 opinions, 4
Treasury decisions, 689 petitions for remission, 182 claims amounting
to over $5,000 each, 45,891 compromises, 7,390 case reports, 69 parole
reports, 302 libels, 183 hearings, revocations, etc., and 36 indictments.
Notwithstanding the enactment in recent years of much new legislation, which has" resulted in a material increase in the legal work of
the Department, it should be noted that, between March 4, 1933, and
July 1, 1937, the number of personnel in the Legal Division increased
only from 857 to 859 and that the pay roll decreased from $2,679,460
to $2,640,592, a saving of $38,868.
BUREAU OF THE MINT i
Institutions of the Mint Service
During the fiscal year 1937, seven mint institutions were in operation: Coinage mints at PhUadelphia, San Francisco, and Denver;
assay office at New York, which handles the major portion of the
1 More detailed information concerning the activities of the Bureau of the Mint is contained in the annual
report of the Director of the Mint.
REPORT OF THE SECRETARY OF THE TREASURY
171
gold imported and exported; gold bullion depository at Fort EJQOX,
Ky.; mint at New Orleans, conducted as an assay office; and assay
office at Seattle. The two last-named institutions are, in eff'ect,
merely bullion-purchasing agencies and also serve the public by making
assays of ores and bullion. Electrolytic refineries are maintained at
New York, Denver, and San Francisco.
Coinage
Domestic coin manufactured during the fiscal year amounted to
760,915,737 pieces, exceeding the production of any previous fiscal
year in the history of the Government. The next highest production
was 733,583,150 pieces in 1920; during the fiscal year 1936, 471,040,986 pieces were produced. The increase in production in 1937 was
reflected in every denomination of fractional coin, but chiefly in the
1 cent and 5 cent denominations. The production in 1937, valued at
$45,386,895, consisted of 177,783,212 subsidiary sUver coins, valued
at $32,962,267; 164,832,570 nickel coins, valued at $8,241,628; and
418,299,955 bronze coins, valued at $4,183,000.
Coinage for foreign governments amounted to 42,550,000 pieces,
compared with 72,180,449 pieces during the prior year. All foreign
coinage, consisting of silver, nickel, and bronze coins for Cuba,
Honduras, Nicaragua, Panama, and Venezuela, was executed at
Philadelphia.
The grand total of domestic and foreign coins made in 1937
amounted to 803,465,737. pieces, an increase of .260,244,302 pieces
over that of the prior year.
Bullion deposit transactions
The number of bullion deposits during the year totaled 97,293.
The method of reporting these deposits w^s changed during the year
and, for purposes of comparison, the figures for 1934, 1935, and 1936
have been accordingly amended to read 113,773, 194,146, and 127,837,
respectively.
Gold operations
Gold acquisitions by the mints and assay offices during the year
amounted to $1,762,927,432.65; receipts from other Treasury offices
of domestic and foreign coin melted during the year amounted to
$149,676,113.44; and transfers between Mint Service institutions
amounted to $5,846,821,665.90. These transactions total $7,759,425,211.99, compared with $2,549,171,816.51 for the prior year.
The acquisitions include $1,742,669.26^of gold received at $20.67 +
per fine ounce, which had not been previously surrendered under the
nationalization orders. The increment on this gold, due to the increase of the monetary value of gold to $35 per fine ounce, amounted
to $1,207,897.48.
" '
Silver operations
The Government's acquisitions of sUver during the year totaled
226,742,842 fine ounces, at an average cost of 55.8+ cents per fine
ounce and a total cost of $126,609,299. The acquisitions consist of
the following:
172
KEPORT OF THE SECRETAEY OF THE TREASURY
Amount (fine
ounces)
Item
Newly mined domestic silver—
_
Nationalized silver.
Purchase Act silver
Silver contained in gold bullion deposits, etc
.
Silver received in exchange for Government stamped bars
.
Total
Cost
63,029,665
63,777
163,030,551
454,301
164,548
$48,851, 604
31,911
77,453,735
199, 647
72,402
226,742,842
126, 609,299
United States coin received for recoinage totaled 3,994,323 fine
ounces, with a recoinage value of $5,521,788. Silver deposited for
foreign coinage by other governments totaled 22,218,016 fine ounces.
Silver transfers between Mint Service institutions totaled 1,741,805
fine ounces. These items plus the silver acquired during the year
brought the total transactions in silver to 254,696,986 fine ounces,
compared with the prior year's total of 626,488,597.
During the year 1937, $126,985,050 of silver certificates were issued
against 98,215,000 fine ounces of silver bullion valued at $1.29+ per
fine ounce, the statutory monetary value of silver. Such silver had
been acquired at an average price of 68.6+ cents per ounce. The
difference between the cost of the silver held to secure such certificates
and the monetary value of such silver is $59,577,451 and this amount
constitutes seigniorage.
The open-market price of silver in New York (mean of bid and
asked) during the fiscal year 1937 averaged $0.45302. The highest
point was $0.47812 on November 9 and 10, 1936; and the lowest was
$0.45062, which prevaUed during most of the fiscal year.
For newly mined domestic silver a return to the depositor of
$0.7757+ per fine ounce, established by the President's proclamation
of AprU 24, 1935, prevailed throughout the year.
Refineries
The electrolytic refinery at New York produced during the year
3,351,715 fine ounces (114.9 tons) of electrolytically refined gold
bullion, and 1,641,602 fine ounces (56.3 tons) of silver bulhon. During the prior year the quantities produced were 6,842,651 fine ounces
(234.6 tons) of gold and 4,555,602 fine ounces (156.2 tons) of silver.
The electrolytic refineries at the Denver and San Francisco mints
remained closed because of building construction and other more
urgent activities.
Stocks of unrefined gold and silver bulhon in mint institutions increased during the fiscal year 1937 by approximately 250 tons, to
1.315 tons. The increase in 1936 was about 56 tons.
Commemorative coins
Commemorative half dollars, bearing special designs relating to
historic events, were issued during the fiscal year 1937, as follows:
REPORT OF T H E SECRETARY OF T H E TREASURY
173
Commemorative coins (half dollars) issued during the fiscal year 1937
Occasion commemorated
Oregon Trail, heroism of pipneers.
Texas, centennial of independence
_..
_
Arkansas, centennial of statehood
__.
Daniel Boone, two hundredth anniversary of birth, supplementary design
Columbia, S. C , sesquicentennial of founding of capital
Cincinnati, Ohio, fiftieth anniversary as music center
.
Long Island, N. Y., tercentenary of settlement
-.-•__
Great Lakes Exposition, Cleveland centennial..
New Rochelle, N. Y., anniversary of founding
Bridgeport, Conn., centennial of incorporation
Delaware, tercentenary of landing of Swedes
Wisconsin, centennial of territorial government..
'.
Lynchburg, Va., sesquicentennial of founding.....
Albany, N. Y., anniversary of founding
Gettysburg, Pa., seventy-fifth anniversary of battle
Elgin, 111., centennial of founding
Roanoke Island, N. C , three hundred and fiftieth anniversary of colonization.
San Francisco-Oakland Bay bridge opening
York County, Maine, tercentenary of founding
.
___
Arkansas, centennial of statehood, change in design
Date of law
May 17,1926
June 15,1933
May 14,1934
Aug. 26,1935
Mar. 18,1936
Mar. 31,1936
Apr. 13,1936
May 5,1936
do.
May 15,1936
do
do
May 28,1936
June 16,1936
do
.....do.
June 24,1936
June 26, 1936
do
do
Pieces
12,000
24,000
16, 500
24, 500
25,000
15,000
100, 000
50, 000
25,000
25,000
25,000
25, 000
20,000
25,000
50,000
25, 000
50,000
100,000
25, 000
25, 000
Commemorative half-dollar coins which were authorized during the
fiscal year. 1937 but not issued during such year are as follows:
Occasion commemorated
Date of law
Antietam, Battje of, seventy-fifth anniversary...
Norfolk, Va., three hundredth anniversary of original land grant and two hundredth anniversary of the establishment of the city of Norfolk as a borough
June 24,1937
50,000
June 28,1937
25,000
Pieces
Stock of coin and monetary bullion in the United States
On June 30, 1937, the estimated stock of domestic coin in the
United States was $1,056,932, 925, of which $547,079,825 was standard
silver doUars, $358,899,286 subsidiary silver coin, and $150,953,814
minor coin.
The stock of gold bulhon, including coin, held in the Treasury on
the same date was valued at $12,318,271,165, an increase of $1,709,854,487; and the stock of silver bullion was 1,283,488,808 fine ounces,
an increase of 206,623,606 fine ounces.
Production of gold and silver
Domestic gold production during the calendar year 1936 was 4,357,394 fine ounces with a value of $152,508,800, compared with 3,609,283
fine ounces with a value of $126,324,900 in 1935. The quantity output
was about 89 percent of that for the record year 1915, when the total
was 4,887,604 fine ounces.
Domestic silver production during the ^calendar year 1936 totaled
63,812,176 ounces. This compares with 45,924,454 ounces for 1935,
and with the record production of 74,961,075 fine ounces for 1915.
Industrial consumption of gold and silver
Gold consumption in the industrial arts during the calendar year
1936 is estimated at $32,967,937. Gold returned from industrial use
exceeded the total used by industry by $2,907,833, compared with an
excess of $32,461,178 during the previous year.
16109—38-
-13
174
REPORT OF TPIE SECRETARY OF T H E TREASURY
Silver used in the arts is estimated at 35,842,674 fine ounces, of
which 19,139,321 fine ounces was new material.
Compared with the prior year, there was an increase in gold consumption of approximately 201,000 ounces, and a decline in silver
consumption in industry of about 5,300,000 ounces.
Mint buildings
During the year the new mint building at San Francisco, the new
wing to the mint at Denver, and the bullion depository at Fort Knox,
Ky., were completed and occupied.
Gold bullion, with value approximating 5K billion dollars, was
shipped from the assay office at New York and the mint at Philadelphia to the bullion depository at Fort Knox, Ky., during the last 6
months of the year. The depository is equipped with the most sensitive and complete protective devices procurable.
The silver bullion depository, in course of construction on a site
formerly included in the military reservation at West Point, will be
operated as an auxUiary of the New York assay office. I t will be
used for the storage of sUver bullion now temporarily placed in the
assay office at New York, the old assay office building at New Yorkj,
the subtreasury building, and ia rented vaults. Appropriations, expenses, and income , ^
Regular appropriations available for the Mint Service during the
fiscal year 1937 totaled $1,295,660; the appropriation for meeting
emergency expenses amounted to $1,050,000; the deficiency act of
June 22, 1936, provided $2,030,000 for gold movements and special
equipment; the public resolution of May 14, 1937, provided $262,500
for emergent expense; and reimbursements to appropriations for
services rendered amounted to $376,899, making a total of $5,015,059.
Expenses amounted to $4,808,531, ofwhich $4,657,840 was chargeable
to appropriations and $150,691 chargeable to income.
The regular income realized by the Treasury from the Miut Service
aggregated $34,040,896, of which $28,887,086 was seigniorage. The
seigniorage on subsidiary silver coin was $17,982,473, and on minor
coin $10,904,613. Extraordinary income aggregated $60,785,348, of
which $59,577,451 was seigniorage on silver bullion revalued to $1.29 +
per ounce, and $1,207,897 was the increment to $35 per ounce on
revalued gold.
The number and value of deposits, transfers, gross income, and
expenses for the fiscal year 1937, and number of employees on June 30^
1937, at each institution are shown in the following table:
EEPOBT OF THE SECEETAKY OF THE TKEASXJEY
175
•Gold and silver deposits and transfers, income, expenses, and employees, by institutions, fiscal year 1937
Number
of deposits of
gold a n d
silver
Institution
Philadelphia
S a n Francisco
Denver..
New York
N e w Orleans
Seattle
Fort Knox .
Total
Bureau
of
Mint
Number
of M i n t
Service
transfers
15,318
29,077
8,578
27, 770
2,849
5,027
288.
31
8,350
88,619
8,674
6
..
Monetary
value of gold
and silver receipts, including transfers i
Gross regular income 2
$207,456,084 $21, 934,070
305, 527, 592
3,876,160
401, 556, 297
4, 378, 283
1, 598, 752, 582
3,800,895
1, 203, 232
12, 989
22,158, 971
69, 354
5, 523, 706, 735
8, 060, 361. 493
34,071,751
Gross expenses 2
EmExcess of in-.
ployees,.
come ( + ) or J u n e 30,
of expenses
1937
(-)
$1,395,887 +$20,538,183
750,116
+3,126,044
667,100
+ 3 , 711,183
600, 212
+ 3 , 200, 683
34, 651
- 2 1 , 662
41, 043
+28,311
1,146,358
-1,146,358
468
193
209
233
16
16
30
4, 635,367
+29,436, 384
204,019
- 2 0 4 , 019
47
1,165
the
Grand total.
88, 619
8,674
8, 060,361, 493
34, 071, 751
4, 839,386
+ 2 9 , 232, 365
1,212
Prior fiscal y e a r . . . 3 123, 514
4,323
3, 344, 467, 432
19, 219, 648
3,163, 801
+16,055,847
1,152
1 Includes interinstitution transactions amounting to $5,849,073,694.
. 2 Includes interinstitution transactions amounting to $30,854.
3 Revised.
BUREAU OF NARCOTICS i
Enforcement activities
The Bureau of Narcotics continued to direct its principal enforcement activities against the major narcotic law violators by giving its
attention primarily to the elimination of the sources of supply of
Ulicit narcotic drugs. This policy has resulted in a reduction from
year to year in the supply of narcotics available to the domestic
illicit trafiic. Accordiugly, the prices of drugs in the illicit market
have continued high, further increases having been noted ia several
localities during the year. The high degree of adulteration previously
found in drugs seized in the illicit trafiic was still apparent during
1937, especially in the case of heroiu, which upon analysis was found
to contain an average adulteration of 81.78 percent.
The decrease in the supplies of smuggled narcotics avaUable to th©
Ulicit traffic, which has forced peddlers and addicts to turn more to
the channels of legitimate distribution for their supply, continued to
be refiected in the robberies of wholesale and retail stocks, the forgery and false execution of narcotic prescriptions, and the improper
prescribing and dispensing of narcotics. The measures to provide
increased safeguards and more secure places of storage for narcotic
stocks iu the hands of registrants resulted in a further decrease in
the quantities of narcotics involved in reported thefts.
1 Further information concerning narcotics is available in the separate report of the
Commissioner of Narcotics.
176
REPORT or THE SECRETARY OF THE TREASURY
The activities of the Bureau resulted in 3,469 arrests for violations
of the Federal narcotic laws and the seizure of 3,962 ounces of narcotic drugs and 115 automobiles, compared with 3,333 arrests, and
seizures of 3,280 ounces of drugs and 109 automobiles during 1936.
There was a noticeable decrease in the number of violations reported,
both in the registered and nonregistered classifications, a total of
4,585 violations having been reported for 1937 compared with 5,859
during the previous year. That this decrease was due primarUy
to the further concentration of enforcement efl'orts against the major
violators is evidenced by the greater number of actual arrests in 1937
although a lesser number of violations was reported. Of the total
violations reported during the year, 23 percent involved persons
registered under the law, compared with 41 percent during 1936.
The Bureau continued to receive the active cooperation of State
and municipal enforcement agencies. Such cooperation increases in
cft'ectiveness with the adoption and enforcement of the Uniform
State Narcotic Law in the several States. This law, approved by the
Conference of Commissioners on Uniform State Laws and by the
American Bar Association nearly 5 years ago, was adopted with little
or no amendment during 1937 in 9 States—Arkansas, Idaho, Iowa,
Minnesota, Missouri, Montana, Tennessee, Texas, and Wyoming,
This makes a total of 38 States which have adopted this legislation.
Prior to July 1, 1936, it had been adopted by Alabama, Arizona,
Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana,
Kentucky, Louisiana, Maryland, Mississippi, Nebraska, Nevada,
New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Utah^
Virginia, West Virginia, and Wisconsin.
Ml of the States and the Territory of Hawaii now have laws for
the control and suppression of the trafiic in marihuana or cannabis.
Narcotic ofiicers have cooperated with State and municipal authorities in the enforcement of these laws and of the municipal ordinances
for control of this traffic. The reports received in the Bureau of
Narcotics covering seizures of marihuana by State and municipal
authorities throughout the country clearly establish that the marihuana problem is one of increasing national significance. Seizures
of varying quantities of the drug and the destruction of considerable
.areas of the growing plants were reported during the calendar year
1936 from 31 States, including 12 States from which none had previously been reported.
The following table shows the number of cases of violation, by
H-egistered and nonregistered persons, of the narcotic laws and the
cases disposed of during the fiscal year as reported by Federal narcotic enforcement officers:
REPORT OF THE SECRETARY OF THE TREASURY
177
Violations of the narcotic laws and the cases disposed of during the fiscal year 1937
Registered persons
Federal court
Total to be disposed
of
._
_
893
1,135
1,036
31
2,695
823
1,960
4,653
1,623
558
306'
144
17
1
2
47
21
17'
16-
740
23
7
10
484
108
61
24?
-)
Total disposed of...
2
52
12
1
1,487
3,410
473
1, 243
X3
fl
o
1
1
.a
1
fl
1
CO
G
1
tS
.a
"fl
o
1
263
6
4
3
13
1
6
2
0
3
1 3,675
0 1, 079
11
4
19
16
227
119
5
3
15
1
269
7
14
8
3
1 4,755
4
5
346
8
16
Fines imposed:
Federal
Joint
Total
State court
1
7
4
Pending June 30,1937
Total..__
Federal court
140
4
- -
Sentences imposed:
Federal
Joint
State court
1
Pending July 1. 1936
Reported durins; 1937:
Federal
Joint-. . __ ._
Convicted:
Federal
Joint-Acquitted:
Federal
Joint
Dropped:
Federal
Joint
Compromised:»
Federal
Joint
Nonregistered persons
-
$36,077.12
106.00
$320. 60
400.00
$129, 712.08
21,464. 25
$3,964.46
8,057.01
36,183.12
720. 6(
)
151.176. 33
12,021. 47
? Represents 81 cases involving tax liability which were closed on payment of taxes and penalties in tbe
sum of $428.27; and 452 cases which were compromised in the sum of $36,894.50.
NOTE.—Federal cases are made by Federal ofRcers working independently, while joint cases are made by
Federal and State oflQcers working in cooperation with each other.
Extent and trend of narcotic traffic
On June 30, 1937, there were 340,714 registrations under the
Harrison narcotic law, as amended, 181 as importers and manufacturers, 1,353 as wholesale dealers, 51,488 as retail dealers, 153,951
as practitioners, and 133,741 as dealers in and manufacturers of
untaxed narcotic preparations, the latter number including registrations for which payment of occupational tax is not required under
the act.
178
REPORT OF THE SECRETARY OF THE TREASURY
During the year 176,748 pounds of opium were imported compared
with importations of 153,141 pounds during the previous year, or an
increase of 23,607 pounds. Of the quantity imported, however,
50,243 pounds were retained in customs bond and were not released
to manufacturers. The net quantity made available to manufacturers showed an increase of 15,515 pounds compared with 1936.
Coca leaves were imported both for medicinal purposes and for the
manufacture of nonnarcotic flavoring extracts. The medicinal leaves
imported amounted to 214,707 pounds compared with importations
of 243,089 pounds during the previous year, or a decrease of 28,382
pounds. Imports of such leaves for the manufacture of nonnarcotic
flavoring extracts amounted to 179,850 pounds.
Exports of narcotic drugs of all kinds amounted to 1,237 ounces
in 1936 and 1,868 ounces in 1937, or an increase of 631 ounces. The
drugs exported during 1937 involved 44,278 taxable ounces of products.
The net quantity of pure drugs of all kinds sold to domestic purchasers by manufacturers amounted to 436,098 ounces compared
with sales of 396,317 ounces of such drugs during the previous year.
DIVISION OF PRINTING
The Division of Printing transacts all of the Treasury Department's
printing and binding business with the Government Printing Office
and outside contractors; approves requisitions for stationery supplies
used by the Department; authorizes engraving work to be done by
the Bureau of Engraving and Printing for all Government departments and establishments, unless money, securities, or postage stamps
are involved; and has control over newspaper and periodical advertising for the Treasury Department, the binding of confidential Department records, and the warehousing and distribution of blank
books and forms for Washington and field offices of the Department.
The Division also edits and prepares copy for weekly issues of ' T r e a sury Decisions'' under customs, internal revenue, narcotics, and other
laws; and prepares semiannual bound volumes thereof and maintains
a mailing list for their distribution. Appropriations to the Department for printing and binding and for purchases of stationery supplies
are under the administrative control of the Division.
The following table shows the amounts appropriated for the Division of Printing for the fiscal years 1936 and 1937, including deficiency
appropriations and additional funds made available for expenditure,
expenditures, and balances:
KEPORT o r THE SECRETAEY OE THE TREASURY
179
Appropriations, additional funds, expenditures, and balances, fiscal years 1936 and
1937
1936 .
1937
A p p r o p r i a t i o n , salaries, Division of P r i n t i n g
$69,980
$69. 240
Appropriation, printing and binding, Treasury Department
Deficiency a p p r o p r i a t i o n , p r i n t i n g a n d b i n d i n g , T r e a s u r y D e p a r t m e n t
R e c e i p t s from sales of customs forms
__ _
T r a n s f e r s from other appropriations
A l l o t m e n t from funds provided u n d e r sec. 915, R e v e n u e Act of 1936 (transfer
from exportation a n d domestic c o n s u m p t i o n of agricultural c o m m o d i t i e s ,
D e p a r t m e n t of Agriculture)
_
_
__
P r i n t i n g a n d binding, other a p p r o p r i a t i o n s
_.
630, COO
231, 260
29,500
656,000
150,000
31,523
8,576
T o t a l available for p r i n t i n g a n d b i n d i n g
A p p r o p r i a t i o n , stationery, T r e a s u r y D e p a r t m e n t
Deficiency appropriation, stationery. T r e a s u r y D e p a r t m e n t
R e i m b u r s e m e n t for stationery furnished other offices
T r a n s f e r s from other a p p r o p r i a t i o n s
Expenditures:
Salaries
Printing and binding
Stationery
__ .
__
_.
__
__
.__'
90, 000
773, 276.
1,845,993
1,709,375
375, 000
75, 000
6,000
400, 000
75, 000
3,869
4,473
__
T o t a l available for s t a t i o n e r y .
G r a n d total
955,233.
1
_
Total
N e t balance
_._
456, 000
483, 342
2, 371,973
2, 261,957
69, 607
1,839,190
455,880
69, 047
1 1,680, 202
482,835
2, 364, 677
2, 232, 084
7,296
29,873
• 1 Figures subject- to slight variations due to necessary delays in receiving bills from the Public Printer
for certain items until pending work is completed after the close of each fiscal year.
Printing and binding
The appropriations for printing and biuding for the fiscal year 1937
amounted to $806,000. Reimbursement of $31,523 from sales of
customs forms and transfers of $8,576 from other appropriations
increased the total avaUable amount to $846,099. Of this sum $845,869 was expended, leaving an unobligated balance of $230. In
addition, $61,057 from an allotment transferred to the Division and
$773,276 from appropriations other than the priuting and binding
appropriation were expended, bringing the total expenditure to $1,680,202. The detaUs of these expenditures are shown in the followiug
table:
180
REPORT OF THE SECRETARY OF THE TREASURY
Expenditures for printing and binding, by bureaus, offices, and divisions, fiscal years
1936 and 1937
E X P E N D I T U R E S FROM APPROPRIATIONS FOR P R I N T I N G AND BINDING
1936
Secretary and General Counsel
Appointments Division
Bookkeeping and Warrants Division
Bureau of Engraving and Printing
Division of Research and Statistics
Bureau of Narcotics
Chief Clerk and Superintendent
Coast Guard
-..
.
Commissioner of Accounts-and Deposits...
Comptroller of the Currency
Customs
Division of Disbursement
Division of Printing
.....-._.
Federal Alcohol Administration
Procurement Division, Branch of Supply
Procurement Division, Public Buildings Branch
Internal Revenue
Mint
•
National bank depositaries
.-..
Public Debt Service
'.
Public Health Service
Secret Service.
.....^
Treasurer of the United States
u..._.
Miscellaneous and department stock..^
.-
1937
$11, 737
476
455
--
31,095
5,056
2, 385
3,188
34, 300
5,118
3,211
2,386
1,325
32, 749
250
.',
-•
$12, 527
_
.
Total expenditures from regular printing and binding appropriation
Customs Service blank forms
Total
33, 291
- 1,178
26, 003
57. 269
6,680
1.087
2, 433
41, 473
6, 510
443, 588
3,768
56
10, 971
69,121
1,075
14, 744
81, 023
814
24,862
64, 314
17, 019
1,147
747
39, 277
3,602
385, 651
2,786
42
9,244
69, 861
1,202
» 21, 286
80,421
• 854,457'
29, 500
814, 346
31, 523
883,957
845,869
E X P E N D I T U R E S R E I M B U R S E D FROM OTHER APPROPRIATIONS
Appointments Division, Emergency Relief, administrative expenses
Division of Research and Statistics:
Exchange stabilization fund
Emergency Relief, administrative expenses..
Bureau of Engraving and Printing, salaries and expenses
Chief Clerk and Superintendent:
Emergency Relief, administrative expenses
Emergency Banking, Gold Reserve, and Silver Purchase Acts
Coast Guard Service:
Emergency Relief, administrative expenses
National industrial recovery.
Accounts and Deposits:
Emergency Relief, administrative expenses...
_
Exchange stabilization fund...
Comptroller of the Currency:
Contingent expensesi national currency
--Salaries and expenses
Federal Reserve issues and redemption account
Insolvent national bank fund
_-.
National bank examiners
Division of Disbursement:
Administrative expenses. Adjusted Compensation Act
Emergency Relief, administrative expenses.
Exportation and domestic consumption of agricultural commodities, Department of Agriculture (transferred to Treasury)
Salaries and expenses. Agricultural Adjustment Administration (transferred
to Treasury)...
General expenses, Agricultural Adjustment Administration (transferred to
Treasury).. .1
Working fund. Treasury, public works
Working fund, national industrial recovery
Salaries and expenses
—
Division of Bookkeeping and Warrants, Emergency Relief, administrative
expenses
Bureau of Internal Revenue:
Emergency Relief, administrative expenses
Salaries and administrative expenses, Silver Purchase Act of 1934
Administration of Cotton Act (transferred to administrative expenses)
Administration of Tobacco Act (transferred to administrative expenses)
Advances to Agricultural Adjustment Administration (transferred to administrative expenses)....
-Secret Service, Emergency Relief, administrative expenses
^Includes $8,576 in transfers from other appropriations.
$6, 354
30,932
593
58
3,666
35
26
399, 516
112
8,925
1,266
118,810
274
7, 239
207
308
1,779
100,047
177
1,615
12, 565
13, 233
2,105
27
2,550
7,303
36
39
37
631
15, 961
4,007
23
972
2,202
28, 653
8
181
REPORT OF THE SECRETARY OE THE TREASURY
Expenditures for printing and binding, by bureaus, offices, and divisions, fiscal years
1936 and 1937—Continued
1936
Procurement Division, Branch of Supply:
General supply fund
Emergency Relief, administrative expenses.. _
.
Procurement Division, Public Buildings Branch, general administrative expenses..
Public Debt Service:
Expenses of loans (act of Sept. 24,1917, as amended and extended)
Administrative expenses. Adjusted Compensation Act
Public Health Service:
Diseases and sanitation investigations. Social Security Act
Emergency Relief, administrative expenses
National Institute of Health, conditional gift fund.
Texas Centennial Exposition (transferred to Treasury, Pubhc Health, act of
Aug. 12, 1935)
Treasurer of the United States:
Administrative expenses. Adjusted Compensation Act
Emergency Relief, administrative expenses
Advances to Agricultural Adjustment Administra.tion
.
Exportation and domestic consumption of agricultural commodities, Department of Agriculture (cotton price adjustment, transferred to Treasury)
Civil Works Administration
Emergency Relief Administration..
Farm Credit Administration
Federal Farm Corporation
Home Owners' Loan Corporation
Reconstruction Finance Corporation..
Tennessee Valley Authority
1937
$2, 706
179,120
918
$142, 417
1,499
168,314
26,856
22, 201
5,367
13,980
24, 763
10, 500
17, 573
2,550
161
20, 289
6,521
3,143
4,385
5
270
813
118
192
69
51
594
Total expenditures reimbursed from other appropriations
Internal Revenue (allotment from funds provided under sec. 916, Revenue Act
, of 1936, transfer from exportation and consumption of agricultural commodities,
. Department of Agriculture)..-'
_
955, 233
773, 276
956, 233
834,333
61,057
Total expenditures reimbursed.
Grand total expenditures..
Total available funds
1,839,190
1,845,993
Balance..
29,173
Stationery supplies
During the fiscal year 1937 the Division approved 12,868 requisitions for stationery supplies for the Treasury Department. The
expenditures for stationery during the last 2 fiscal years and the
balances of available funds are shown in the following table:
u
Available funds and expenditures, fiscal years 1936 and 1937
1936
Available funds
Total expenditures
l..
Balance
..
:
1937
$456,000
455,880
$483,342
482,835
120
507
Department advertising
Authorizations for advertising were issued to 5,734 newspapers and
periodicals in the fiscal year 1937, compared with 5,806 in 1936, a
decrease of 72. The expenditures authorized were $68,304.70 in 1936
and $61,094.76 in 1937, a decrease of $7,209.94.
Engraving work
A total of 167,437,503 certificates, checks, commissions, drafts,
transportation requests, and warrants was approved by the Division
182
REPORT OF THE SECRETARY OF THE TREASURY
for execution by the Bureau of Engraving and Printing for the several
departments and establishments of the Government during the fiscal
year 1937, compared with 177,332,308 in the preceding year.
PROCUREMENT DIVISION
Public Buildings Branch
Office of the Supervising Architect.—Continued progress was made
during the year by the Office of the Supervising Architect in carrying
out expeditiously the emergency construction program and in the
completion of projects included in previous programs.
The Office continued to furnish architectural and engineering services to the various executive departments and agencies of the Government on a reimbursable basis on projects executed with funds under
their control, notably the construction of the extension to the Federal
Home Loan Bank Board Building; the design of a number of embassies
and other Foreign Service buUdings for the Department of State; and
the design of buildings or the checking of drawings prepared by private
architects for jaUs, reformatories, etc., under the jurisdiction of the
Bureau of Prisons, Department of Justice.
The continuance of the work of special committees, including the
Advisory Committee on Architectural Design, on Structural Engineering, and the Directive Board, has enabled the Office to place construe^
tion projects under contract in the minimum of time and continue
progress in raising the standard of Federal building design and
construction.
In accordance with the pohcy established by the Secretary of the
Treasury about 3 years ago, all buUdings in the program have been
designed in the Office of ^ e Supervising Architect, and the drawings
and specifications for projects designed by private architects under
the previous policy have been largely completed. The four remaining
projects which have not been placed under construction contract are
the post office, Kalamazoo, Mich.; post office and customhouse.
Corpus Christi, Tex.; post-office remodeling, Pasadena, Calif.; postoffice annex. Providence, R. I.; but present indications are that these
projects will be placed on the market early in the fiscal year 1938.
A large portion of the program has consisted of small post-office
buildings spread over the entire United States. Type designs were
developed, and in order to meet the varying requirements of the Post
Office Department and the sectional architectural traditions 11
designs were required. By thus standardizing the designs, there
resulted a great saving in time and cost of production o l t h e drawings
and specifications, and the placing of these projects on the market was
greatly expedited. The buildings which have been constructed from
these type designs have proved economical and satisfactory. Special
effort has been made to improve the appearance of the sites by
appropriate landscaping.
The policy of preparing drawings and specifications permitting to
the greatest practicable extent the use of materials and products native
to the localities has resulted in stimulating employment and spreading
the benefits of the building program.
Office of the Supervising^ Engineer.^—At the end of the fiscal year 1937
the Office of the Supervising Engineer, through its field service, was
supervising the execution in the continental United States, Virgin
REPORT OF THE SECRETARY OF THE TREASURY
183
Islands, Alaska, Puerto Eico, and Hawaiian Islands of over 400 con-^
struction projects in various stages of completion, ranging in cost from
$40,000 to approximately $9,000,000. These projects included postoffice structures, a cement plant in Puerto Rico, Federal jails in California and Minnesota, Public Health hospitals at various points, and a
bullion depository at Fort IQiox, Ky., the latter having been practically completed in December 1936; and preparations were being
made to supervise the construction of United States embassies in
foreign countries. In Nome, Alaska, where frost penetrates the ground
to a known depth of 500 feet, excavation for the post office and courthouse building was made by pouring salt water from the Bering Sea
over the frozen tundra, thus melting the ice and washing the debris out
to sea.
The modern use of architectural concrete for the exterior of buildings has been developed and used successfully at several points in the
United States.
The coordination of repair work of post offices and other buildings
has been continued, and methods have been adopted whereby viola-?
tions of labor laws on Federal construction work, particularly the
8-hour law, will be reduced to a minimum.
During the year the Office drafted 674 formal contracts, varying in
amount from $2,000 to several million dollars each, the total original
amount of these contracts being $56,634,858.09; approximately 7,000
informal contracts and authorizations of expenditure of less than
$2,000 each, including 241 site surveys and soil investigations; and
8,000 individual orders for standard lock boxes, metal shelving, models,
title letters, and other materials supplied under annual contracts for
incorporation in buildings under construction or repair.
The unit of special inspection engineers submitted a large number
of reports of inspection of newly constructed buUdings of all types.
These reports covered, among other things, observations and suggestions relating to new materials and methods used in construction.
Methods were worked out during the year that will expedite the
authorization and performance of minor repair work in occupied
buildings throughout the country.
Combined building program.—During the fiscal year 1937, the
building operations of the Public Buildings Branch resulted in the
completion or practical completion of approximately 557 major construction contracts, with a total limit of cost of $96,844,167. Contracts for 388 construction projects were awarded, with a limit of cost
of $69,155,744.
On June 30, 1937, 138 projects, with a limit of cost of $24,345,300,
were on the market for construction bids or drawings were completed
and specifications advanced to a point where they were virtually ready
for the market. Drawings were in course of preparation for 121
projects, with a limit of cost of $31,911,000. In addition, there were
47 projects, with a limit of cost of $5,447,100, for which drawings had
not yet been started but sites had been selected or were in the process
of selection.
Original public building program.—Under the Public Building Act,
approved May 25, 1926, and subsequent acts enlarging the public
building program then authorized, the 29 projects which were under
contract at the end of the fiscal year 1936 were completed.
Building program in the District of Columbia.—The present building
program for the District of Columbia is being carried on with funds
184
REPORT OF THE SECRETARY OF THE TREASURY
aUotted to the Division by the Federal Emergency Administrator of
Public Works and from appropriations made direct to the Division.
The new Interior Department Building costing approximately
$13,500,000, four buUdings for the National Zoological Park costing
approximately $870,000, and an addition to the Federal Home Loan
Bank Board Building costing approximately $1,900,000 were completed and occupied during the year. Under a limit of cost of
$6,325,000, a contract was awarded for the construction of an annex
building for the Bureau of Engraving and Printing and a building for
the Bureau of Economics, Department of Agriculture. The Bureau of
Economics buUding was completed the latter part of March 1937, and
the contract for the annex building was 56 percent complete on June
30, 1937. The construction of a warehouse for the Government
Printing Office, at an estimated cost of $1,400,000, was 62 percent
<complete; the contract for the construction of the Apex BuUding, at a
<cost of $3,780,000, was 31 percent complete; and the addition to the
Archives Building, to cost approximately $3,610,000, was 50 percent
complete at the end of the fiscal year.
I n addition, numerous minor contracts for improvements and
additional work in the buUdings in the District of Columbia program
were completed or were in progress.
Program under the Public Works Administration.—T]IQ number of
.allotments for public buildings by the Public Works Administration,
iunder the act approved June 16, 1933, and subsequent legislation, was
increased during the year from 434, with a limit of cost of $75,763,645,
to 437, with a limit of cost of $76,039,949.
The status of work under this program on June 30, 1937, is shown
in the following table:
Number of
projects
Limit of '
cost 1
Authorized
437
$76, 039,949
Cornpleted
Under contract
In survey stage.
425
11
1
64,349, 502
11, 683, 947
6,500
437
76,039,949
status
....
Total
1 Includes augmentations from funds provided by Emergency Appropriation Act of June 19, 1934, and
subsequent legislation.
Emergency construction program.—The acts approved June 19, 1934,
August 12, 1935, and June 22, 1936, provided appropriations totaling
$187,918,661 for the emergency construction of public buildings
throughout the country, the projects to be selected by the Postmaster
General and the Secretary of the Treasury. Under these acts 1,121
projects had been selected by the end of the fiscal year 1937; 424 of
ithese projects with a limit of cost of $48,588,914 had been completed,
392 with a limit of cost of $77,632,847 were under contract, and 305
with a limit of cost of $61,696,900 were in the preliminary stages.
Under the act approved June 19, 1934, the number of projects
selected was increased during the year from 360 with a limit of cost
of $65,946,944 to 364 with a limit of cost of $66,299,123.25. The status
of the work under this act on June 30, 193r7, was as follows:
185
KEPORT OF THE SECEETAKY OF THE TREASURY
Number of
. projects
Status
Limit of cost ^
Authorized--
364
$66, 299,123. 25'
Completed
Under contract
Bids in, on market, or in specification stage.
In drawing stage
Sites selected and surveys ordered
Sites advertised for and awaiting selection..
287
60
3
10
2
2
864,894. 00'
777, 529. 25'
239, 700. 00'
863, 000. 00410, 000. 00'
144,000. OO
Total
,299,123.25
1 Includes augmentations from funds provided by Emergency Appropriation Act of June 19, 1934, and
subsequent legislation.
Under the act of August 12, 1935, due in large part to rising costs of
construction, the number of projects allocated was reduced from 365
with a limit of cost of $59,789,468 to 359 wdth a limit of cost of $61,607,908.75. The status of this work on June 30, 1937, was as follows^
Number of
projects
status
Limit of cost ^
Authorized
359
$61, 607, 908-; 75-
Completed
--..
Under contract.
Bids in, on market, or in specification stage
In drawing stage
137
196
21
5
12, 724i 020. 00'
36,867.; 888. 7511,004; 000. .001,012, 000.' OOi
TotaL.
61,607, 908. 75
1 Includes augmentations from funds provided by Emergency Appropriation Act of June 19; 1934, and
subsequent legislation.
Under the act approved June 22, 1936, the number of projects-allocated was increased during the fiscal year from 351 with a limit off
cost of $55,310,000 to 398 with a limit of cost of $60,011,629. T h ^
status of this work on June 30, 1937, was as follows:
Number of
projects
status
Authorized
:.
-
Under contract
Bids in, on market, or in specification stage
In drawing stage
Sites selected, surveys ordered, and surveys completed
Sites advertised for and awaiting selection
Total
Limit of
cost ^•
398
$60, Oil, 629J1
136
114
106
22
20
15, 987,429!<
13.101, 60O
26,036,0001, 555, 6003, 331,000"
398
60,011,629>
1 Includes augmentations from funds provided by Emergency Appropriation Act of June 19,1934, and
subsequent legislation.
Program for other departments.—Funds to the amount of $32,996,800were transferred to the Treasury Department by other departments
for the rehabilitation, extension, and remodeling of old buildings>
construction of new buildings, repairs, etc., 42 projects being involved^
Thirty-nine of these projects costing $16,086,800 were completed,, 2:
projects costing $7,425,000 were under contrax^t at the end of the year^
and the value of 1 project on the market was $4,785,000. A project
to cost approximately $4,700,000 was being held in abeyance pending;
definite location of the site.
186
REPORT or THE SECRETARY OF THE TREASURY
Repair and eguipment of Federal buildings.-—During the year
$1,606,945.11 was spent for the repair and equipment of Federal
buildings throughout the country, in the custody of the Treasury and
Post Office Departments. Included in this expenditure were 4,119
contracts, at a cost of $1,156,712.01, for repair work, and orders for
materials purchased through the Branch of Supply amounted to
$450,233.10 during the year.
Section of Space Covtrol.—This section consists of a Space Allotment
Unit, Space Assignment Unit, and a Real Estate Unit.
The Space Allotment Unit during the year submitted recommendations fpr the assignment of space in 382 buildings, all of which on
June 30, 1937, were either completed, under construction, or in the
drawing stage. Exclusive of post office space, the unit has recommended for assignment 653,259 square feet, as a result of which approximately $190,000 will be saved the Government in annual rentals.
This allocation was 365,121 square feet less than that requested, thus
enabling the Government to make potential savings in construction
costs.
The Space Assignment Unit cleared approximately 15,000 leases for
rented quarters and assigned 127,162 square feet of space to the various
Federal agencies. A saving of $130,063.69 in rental was efl;ected
through a more efficient utilization of space in active Treasury buildings and in old supplanted buildings. A field survey at Denver, Colo.,
resulted in an annual rental saving of $10,602.51 by a better and more
economical arrangement of existing assignments in the customhouse
and post office buildings. Value of space released in commercial buildings, including leased post office space, amounted to $4,233,324.07
for the year 1937.
The Real Estate Unit sold during the year 38 surplus properties at
$1,260,730.20. Under the provisions of Public No. 330, approved
August 26, 1935, which authorize the sale of Federal buildings and
sites for which there is no further Federal need, 11 of these properties
were sold for $208,675. The other 27 properties were sold for $1,052,055.20 under the provisions of Public No. 351, approved August 27,
1935, which authorize the sale of real property located outside the
District of Columbia, exclusive of military or naval reservations,
which is not needed by the Federal agency having control of the
property. There remain to be sold 167 pieces of property valued at
$31,000,000.
Properties with an estimated value of $1,989,499.73 were declared
surplus by the various Government departments; and 18 properties
with an estimated value of $328,096.93 were reassigned to other
Federal agencies by the Real Estate Unit under the provisions of
Public No. 351.
The unit also clears the acquisition of real estate by all Government
departments. During the year 107 clearances for the acquisition of
property costing $3,999,935.78 were made.
The Advance Construction Programs Unit was transferred to the
National Resources Committee in August 1936. That portion of the
personnel engaged upon the preparation of an inventory of Federal
real estate and improvements, as authorized by the Budget, was retained for this purpose and established as the Federal Real Estate
Inventory Unit. This inventory is being revised as of June 30, 1937,
and includes over 11,000 projects in the custody of over 60 agencies.
187
REPORT OF T H E SECRETARY OF T H E TREASURY
The United States Housing Corporation, authorized by the act
approved M a y 16,1918, and former^ administered by the Department
of Labor, was transferred to the Procurement Division by the terms
of Executive Order No. 7641, dated June 22, 1937; and the Treasury
Department Appropriation Act, approved May 14, 1937, appropriating
funds for general administrative expenses of the Procurement Division
for the fiscal year 1938, provided an appropriation for expenses necessary to wind up the aft'airs of the Corporation and eft'ect its dissolution.
The functions of liquidating the Corporation were assigned to the
Section of Space Control as of July 1, 1937.
Section of Painting and Sculpture:—The work of the Section of
Painting and Sculpture has greatly increased because of the increased
number of mural and sculpture contracts. The status of these contracts for the last 3 fiscal years is as follows:
1935
1936
Contracts completed..
Contracts in force
Contracts pending
1937
71
193
168
Since the organization of the section, reservations have been made
for mural and sculpture decorations in 490 buildings; 94 contracts
have been completed with an expenditure amounting to $175,535.66;
and there are 193 existing contracts involving an obligation of
$351,251.34.
During the year the section held 3 national competitions and 13
regional competitions in which 1,401 artists entered, submitting
3,706 mural designs or sculpture models. In one national competition for murals to be installed in the San Antonio, Tex., post office,
914 sketches were submitted by 186 artists. In the Department of
Justice building competition, 283 artists submitted 437 sketches;
and in the Department of the Interior competition, 297 artists submitted 608 sketches. There has been a steady increase in the interest
of the artists as shown by the following comparison:
Number of artists competing....
Number of sketches submitted.
1935
1936
764
1,327
1,107
1,783
1937
1,401
3,706
Twenty-three artists won competitions and 130 artists were given
appointments to execute murals or sculptures. The opportunity
afforded by the Government has enabled artists to make notable
progress in their work.
The section published four more issues of the Bulletin of the Treasury Department Art Projects during the year, and the circulation was
increased from 5,300 to 7,000. Photographs of the work of 4,386
artists were submitted for the photographic reference file of American
painting and sculpture. In answer to requests from universities,
museums, schools, and art associations, the section sent exhibitions to
75 different places. Working in conjunction with emergency conservation work, the section selected 100 artists to paint and draw the
life and activities of th^ CivUian Conservation Corps camps.
188
REPORT OF THE SECRETARY OF THE TREASURY
Treasury relief art project.—The original allocation of $530,784 to
the Treasury relief art project was increased by supplementary
allocations to $735,784, of which $676,521.44 was obligated to June
30, 1937.
As of June 30, 1937, 50 murals for Federal buUdings had been completed, of which 30 had been installed; 27 sculpture projects had been
completed and installed; and 34 mural and 20 sculpture projects were
incomplete. About 9,707 easel paintings were executed, of which
1,499 were allocated to Federal offices and buildings, penal institutions,
hospitals, and educational institutions.
Three artists were assigned to Federal penal institutions for the
purpose of doing educational therapy work, and the officials of the
Bureau of Prisons were favorably impressed by the response manifested by the inmates who participated in this work.
The largest number of artists employed at any one time was '356.
Artists who had completed their assignments were transferred to other
Government agencies, and on June 30, 1937, there were employed
only 135 artists. As rapidly as these complete their assignments
they will be transferred to other agencies, and the project will be
liquidated.
Administration and cost of Federal buildings under the control of the
Treasury Department.—The administration, number, and cost of completed buUdings (exclusive of land) from 1853 to June 30, 1937, are
shown in the following table. The repairs on these buUdings are
payable from annual appropriations for repairs to public buildings.
Number and costs of completed buildings (exclusive of land) as of June 30, 1937,
repairs on which are payable from the regidar repair appropriations
Buildings operated by—
Number
Post Office Department...
.
Interior Department
Procurement Division
Procurement Division, surplus Federal buildings (old) available for sale,
vacant or temporarily occupied
.
Bureau of the Mint
Superintendent of Treasury Buildings
Public Health Service:
Marine hospitals
Quarantine stations
Total
._-.
Cost
2,311
11
96
$436,314,366.83
12,217,536.53
58,085,455.48
i 96
5
4
38,005,354.60
6,472,564.70
12,027,875.24
231
19
26.800,924.56
6,331,157.32
2,573
596,255,235.25
1 Includes 6 buildings used by Post Office Department, 2 buildings used by Bureau of the Mint, 35 vacant
buildings, 11 buildings used by emergency relief agencies, 32 buildings used by other Government agencies,
6 buildings rented for commercial purposes, and 4 recommissioned buildings.
2 Includes Public Health Building, Cincinnati, Ohio; Public Health Laboratory, Hamilton, Mont.;
Narcotic Farm, Lexington, Ky.; Public Health Building, Philadelphia, Pa.; and National Institute of
Health, Washington, D . C .
The following table, pursuant to the act approved June 6, 1900
(31 Stat. 592), shows the total expenditures for all purposes to June
30, 1937, for buUdings constructed by the Treasury Department,
Expenditures from annual appropriations are not included.
189
KEPOET OF THE SECRETARY OF THE TREASURY
Cumulative expenditures, by types, on each class of public buildings constructed by
the Treasury Department to June SO, 1937
Construction
Post-office, courthouse, c u s t o m h o u s e
b u i l d i n g s , etc
Courthouse buildings
Customhouse buildings
M a r i n e hospital b u i l d i n g s
Post-office b u i l d i n g s . . . - .
Q u a r a n t i n e station b u i l d i n g s
V e t e r a n s ' hospital b u i l d i n g s
Miscellaneous buildings
Total
Extensions,
T o t a l expendialterations, a n d A n n u a l repairs
tures, J u n e
special items
30, 1937.
$179, 770,463. 62
14, 831, 573. 53
24,117, 870. 94
14,635, 300. 43
240, 54.6, 093. 05
4,224, 076. 75
493, 355. 47
165, 693, 962. 61
$38, 776, 799. 70
1,343, 004. 70
4, 194,244. 61
9,126, 277. 25
19,235,485.10
3, 384, 387. 32
369, 076. 52
15, 766, 888.13
$22,127, 543. 97
650, 641. 65
2, 960, 406. 81
4, 383,436. 96
14,848, 736. 66
1, 989, 506. 51
104, 010. 20
6,812, 977.10
$240,674,807.29
16,825,119. 88
31,272, 522. 36
28,145, 014. 64
274, 630, 314. 81
9, 597, 970. 58
966, 442.19
188,273, 827. 84
644, 312, 696. 40
92,196,163. 33
53,877,159. S
790, 386, 019. 69
Cost of sites
Post-office, courthouse, c u s t o m h o u s e b u i l d ings, etc
C o u r t h o u s e buildings..
C u s t o m h o u s e buildings
M a r i n e hospital b u i l d i n g s
Post-office b u i l d i n g s
Q u a r a n t i n e station b u i l d i n g s
Miscellaneous b u i l d i n g s
A d m i n i s t r a t i v e expenses:
W o r k i n g fund projects
P u b l i c W o r k s A d m i n i s t r a t i o n projects.
E m e r g e n c y construction projects
E m e r g e n c y repairs
Unallotted appropriations
Total
$47,870, 996. 42
6, 502,384. 69
3, 951, 922. 33
930, 823. 53
83,488, 677. 57
351,487. 60
59,383,123. 08
Outstanding
liabilities
chargeable against a p p r o Unencumpriations 1
bered b a l a n c e
of appropriations
Sites
Buildings
$472, 381. 00
210, 000. 00
981,194. 98
203, 300. 00
$18,149, 303.47
• 418,352.02
302, 634. 23
216, 503. 72
28,225, 085. 26
41, 330. 58
21, 980,258. 60
$4,846,461.06
7, 502, 225. 54
126,822.16
2, 947,178. 29
21, 517, 814. 72
686, 809.13
109, 556. 49
8, 752. 01
448,431.12
7,462, 858.42
63, 549. 00
1,286, 519. 64
201,479,416. 22
1,866,875.98
1,333,467.88
47, 006, 977. 68
1 I n a d d i t i o n a d m i n i s t r a t i v e expenses, totaling $1,866,076.93, include $1,863.04 for w o r k i n g fund projects
$227,659.20 for P u b l i c W o r k s A d m i n i s t r a t i o n projects, a n d $1,636,654.69 for emergency construction projects.
Expenditures.—Expenditures for all purposes by the Public Buildings Branch during the year, together with outstanding contract
liabilities and unencumbered balances of appropriations, are shown
in the following statement:
Expenditures and contract liabilities charged against appropriations for the fiscal
year 1937, and unencumbered balances as of June 30, 1937
Sites a n d additional l a n d .
C o n s t r u c t i o n of n e w b u i l d i n g s
E x t e n s i o n to buildings
Miscellaneous special items
E m e r g e n c y repairs to p u b l i c buildings, etc
A d m i n i s t r a t i v e expenses:
P u b l i c W o r k s A d m i n i s t r a t i o n projects
W o r k i n g fund projects.
E m e r g e n c y construction projects
E m e r g e n c y repairs projects
_
Unallotted appropriations
F u r n i t u r e for triangle b u i l d i n g s
O u t s i d e professional services
R e p a i r s , preservation, a n d e q u i p m e n t , p u b l i c b u i l d i n g s . .
F u r n i t u r e a n d repairs of s a m e for p u b l i c b u i l d i n g s . . .
o p e r a t i n g supplies for p u b l i c buildings
General a d m i n i s t r a t i v e expenses.
O p e r a t i n g force for p u b l i c b u i l d i n g s
Total.
16109—38-
-14
Expenditures
C o n t r a c t liabilities charged
against a p p r o priations
Unencumbered balances, J u n e
30, 1937
$5, 581, 635. 91
60, 936, 727. 84
8,969, 644. 68
718,126.16
814,822.13
$1,866,875. 98
53, 339,065.19
15, 302,170.13
692, 232. 66
624,163. 64
$31, 561.34
30, 310,892. 24
7, 040,877. 57
353, 536. 24
318,932. 58
1, 522,587.48
18, 501. 23
5, 727, 740. 58
75, 904.46
227, 659. 20
1, 863.04
1, 636, 654.69
9,913. 94
116, 703.81
1,239, 715. 97
37,137. 86
383, 437.17
889,807. 74
1,404,678.82
12, 217. 58
197, 910. 99
678, 777. 09
16,419.91
73, 306. 33
48,846. 68
28, 632. 51
448,431.12
8, 762.01
7,462,868.42
63, 649.00
1,286, 519.64
42,155. 40
132, 639. 24
38,443.84
420. 51
38, 933. 66
6,142.44
103, 630.44
78,446,985. 78
74, 745, 594. 52
47, 687, 276. 68
190
REPORT OF THE SECRETARY OF THE TREASURY
Branch of Supply
During the year the Branch of Supply received 39,464 bids for supplies and materials and awarded 22,729 contracts. Purchases, exclusive of field purchases, amounted to $26,762,952, compared with
$16,940,569 in 1936, an increase of 58 percent. In addition, term contracts made by the Branch of Supply were used by the departments
and establishments for purchases approximating $54,136,942.53.
Consolidated contracts were executed covering tank car, tank
wagon, and steel drum deliveries of motor gasoline and fuel oil for
Federal activities in all the States, their requirements totaling approximately 123,667,120 gallons. Consolidated contracts were effected
covering drayage service for Federal activities in five cities; typewriter repair service in two cities; servicing of calculating machines,
reproduction service, and laundry service in one city; and automobile
storage in one city.
As a result of negotiations with representatives of the utility companies in New York City, numerous individual contracts for electricity,
executed by Federal activities in New York City and the vicinity,
were consolidated into six contracts with an appreciable saving to the
Government. A consolidated contract was negotiated for the Philadelphia area under which, effective July 1, 1937, lower rates were secured which should result in an annual saving of approximately
$10,000.
Surveys of telephone services for the Government in Washington
and in the field were initiated with the object of effecting economies
with no detriment to the service or of bettering the present service at
no additional cost.
The fuel handling plant effected deliveries to the departments and
establishments consisting of 329,363 tons of coal, 5,751,133 gallons of
oil, 318 cords of wood, 502 bushels of charcoal, and 343 tons of coke.
The Federal Specifications Division prepared 195 new specifications,
and revisions and amendments to Federal specifications, bringing the
total specifications in effect to 1,134.
The Federal Catalog Division revised various sections of the Federal
Standard Stock Catalog and checked and arranged stock lists of the
departments and establishments.
In handling 7,347 lists of surplus field property covering a wide
variety and volume of items, the Federal Surplus Property Section effected 4,819 transfers to Federal activities and granted 5,283
clearances for other disposition. Forfeited alcohol and liquor, in the
amount of 179,029 gallons, were transferred to Federal activities.
Surplus property, valued at approximately $7,000,000, was transferred
to the various activities in the field. Surplus property and waste material in the District of Columbia were sold at auction, under sealed
bid or term contract, and the proceeds of $121,809 were deposited in
the Treasury as miscellaneous receipts.
Requisitions to purchase approximately 4,500 refrigerators were
returned to the Resettlement Administration in view of the availability of this item as surplus to the Federal Housing Administration, and
a large number of electric refrigerators were accordingly delivered to
the various Resettlement Administration projects.
The Federal Traffic Section issued to the departments and establishments 5,129 routing orders covering 37,908 cars, in addition to
REPORT OF THE SECRETARY OF THE TREASURY
191
routing 29,928 less-than-carload shipments; and furnished 291,975
Tate quotations.
The Automotive Repair Section regularly serviced 571 passenger
cars and trucks, completing 3,257 repair orders and dispensing 209,407
•gallons of gasoline and 9,488 gallons of oU.
The Typewriter Repair Section completed 20,314 overhauls and
adjustments of typewriting machines for the departments and establishments in Washington, representing aggregate charges of $37,742.
The purchase of textiles for use in connection with Works Progress
Administration sewing projects amounted to 113,218,678 yards of material, aggregating $13,112,419 in cost and involving deliveries to 6,417
different locations. By preparing new specifications and making factory inspections, a saving of $2,104,171 was effected in meeting this
unprecedented requirement.
One hundred and twenty-three Federal Business Associations, functioning in the field as agencies of the Director of Procurement, assisted
in obtaining bids leading to various consolidated contracts, in supervising the loan of property to local activities of the Government, and
in collecting data for use in telephone service surveys. These associations conducted a survey which resulted in making available to the
Federal Housing Administration Government-owned space in the
amount of 179,092 square feet for the storage of repossessed equipment pending transfer by the Branch of Supply. Governmentowmed trucks were obtained by the associations for use by the Post
Office Department in handling mail during the Christmas period of
1936, eliminating the expense of $121,867.12 for the rental of
equipment.
Continuous cooperation was given the Department of Labor in enforcing the provisions of the Walsh-Healey Act, approved June 30,
1936, which provides conditions for the purchase of supplies and the
making of contracts by the United States. The instructions issued
by the Secretary of Labor provide that all requests for exemptions
to the act be transmitted through the Procurement Division to the
Department of Labor.
The Branch of Supply collaborated with the State Department in
the procurement of special furniture for embassy and legation buUdings. This cooperation included the study of pieces in museums and
other places from which designs were developed suitably representing
American types and materials, and the details of advertising for bids,
opening and consideration of proposals, and recommendations to the
State Department as to award.
Plans w^ere made for the establishment in New York City on July 1,
1937, of a branch office, which among other duties makes, as directed,
local purchases of supplies and materials, supervises the reading of
electric service meters in buildings covered by consolidated contracts,
checks bills from utility companies holding consolidated contracts, and
performs all. activities incident to the purchase of materials.
Under the provisions of an Executive order, dated May 6, 1935, the
Director of Procurement continued to purchase materials, supplies,
and equipment for the work relief program. The procurement
offices in each of the States and Hawaii, Puerto Rico, and the Virgin
Islands, operating in close cooperation with the State Works Progress
administrators and the Treasury State accounts and disbursing offices,
made these purchases.
192
REPORT OF THE SECRETARY OF T H E TREASURY
The Emergency Relief Accounts Section controlled, audited, and.
recorded the financial transactions involving purchases. These purchases were made from the work relief supply fund for which $3,000,000*
was allotted on August 21, 1935, from the Emergency Relief Appropriation Act of 1935. Due to the expiration on Juiie 30, 1937, of the
appropriation contained in the Emergency Relief Appropriation Act
of 1935, out of which this fund was established, the fund is now in
process of liquidation. The net assets will be returned to the appropriation up to the amount of the allocation, and any excess will be
covered into the surplus fund of the Treasury. On June 29, 1937,.
Presidential Letter No. 7002 authorized the establishment of a new
work relief supply fund of $3,000,000 out of the appropriation con-?
tained in the Emergency Relief Appropriation Act of 1937, for use
in accordance with the pro^dsions applicable to the then expiring work
relief supply fund.
During the year the Procurement Division and the State procurement officers received a total of 804,322 requisitions and issued
1,110,110 purchase orders, the total purchases thereunder aggregating $247,003,476.93. State procurement officers handled approximately 2,740 new leases, 1,848 renewals, and 832 agreements covering^
the use of space at nominal rentals, equivalent to donations; and .401
sales of property, surplus to the W^orks Progress Administration and
the Resettlement Administration, these sales comprising 557 awards
from which a total of $117,239.09 was received and deposited a&
miscellaneous receipts.
PUBLIC DEBT SERVICE
The Public Debt Service is charged with the conduct of transactions
in public debt securities of the United States, the verification of United
States currency redeemed by the Treasurer of the United States and of
imperfect securities delivered by the Bureau of Engraving and Print-^
ing, the destruction of redeemed currency and other securities authorized to be destroyed, and the procurement of distinctive paper for
currency and public debt securities.
^ The Public Debt Service comprises the Office of the Commissioner,
the Division of Loans and Currency, the Office of the Register of the
Treasury, the Division of Paper Custody, the Division of Public DebtAccounts and Audit, and the Destruction Committee, with a small
field force at the mill of the contractor for distinctive paper. The
Federal Reserve banks, as fiscal agents of the United States, function
as a field force for public debt transactions, and the Postal Service in
like manner for the sale of United States savings bonds.
The following consolidated statement indicates the volume of public
debt transactions conducted during the year:
Pieces
Transaction
Issued:
Bearer
Registered...
:
Total
Retired:
Bearer
Registered
Total
.
.
_
._ .
; Paramount
1,104,062 : $14, 037, 750, 800
6i 014,096
2, 905, 481, 697
6,118,158
16,943; 232,497
1 1,014,984 • 12,387,374,896
' 9; 649, 769
1,659,832,436
10,664,753
13, 947, 207, 332
193
REPORT OF T H E SECRETARY OF T H E TREASURY
Division of Loans and Currency
This Division is the active agent of the Secretary of the Treasury for
the issue of all public debt obligations of the United States and for
•conducting transactions in such obligations after issue. I t is also
responsible for the issue of bonds or other obligations of Puerto Rico
.and the Philippine Islands, for which the Treasury Department acts as
fiscal agent, and of the securities of various Government corporations
and credit agencies. The Division undertakes the safekeeping of these
securities for certain Government offices. I t also counts and delivers
to the Destruction Committee the United States currency canceled as
unfit and mutUated paper (spoilage, etc.) received from the Division
•^of Paper Custody and the Bureau of Engraving and Printing.
Issue and retirement of securities.—The following is a summary of the
issues and retirements of securities conducted through this Division
•during the fiscal year 1937. Detailed accounts of all transactions in
public debt securities of the United States are presented in formal
^statements elsewhere in the report.
Transactions in United States and insular securities and in securities of various
Government corporations and'credit agencies during the fiscal year 1937
[Par value]
Registered
T u b l i c d e b t securities:
Balance on h a n d J u n e 30, 1 9 3 6 . . .
$3,108, 889, 645. 00
s t o c k r e t u r n e d to t h e Division unissued
169, 273, 825. 00
Received from t h e B u r e a u of E n g r a v i n g a n d
3,006, 240, 336. 40
Printing
T o t a l to b e accounted for
Stock s h i p m e n t s to Federal Reserve b a n k s
a n d post oflQces
Issued b y t h e Division
U n i s s u e d stock delivered to t h e Register of
the Treasury
T o t a l disposals
Balance on h a n d J u n e 30, 1 9 3 7 . . . . .
R e t i r e d a n d redeemed
I n s u l a r securities:
B a l a n c e on h a n d J u n e 30, 1936
'
Received from t h e B u r e a u of E n g r a v i n g a n d
Printing
T o t a l to be accounted for
.
Issued b y t h e Division
U n i s s u e d stock delivered to t h e Register of
the Treasury
T o t a l disposals
B a l a n c e on h a n d J u n e 30, 1937
R e t i r e d a n d redeemed
_
.*
' G o v e r n m e n t corporations a n d credit agencies:
B a l a n c e on h a n d J u n e 30, 1936
Stock r e t u r n e d to t h e Division unissued
Received from t h e B u r e a u of E n g r a v i n g a n d
Printing
T o t a l to b e accounted'^or
.Stock s h i p m e n t s to Federal Reserve b a n k s
I s s u e d b y t h e Division
U n i s s u e d stock delivered to t h e Register of
the Treasury
T o t a l disposals
B a l a n c e on h a n d J u n e 30, 1937
R e t i r e d a n d redeemed
Bearer
Total
$14, 310, 581,180 $17, 419, 470,825. 00
159, 273, 825. 00
16,081, 712, 000
19,087,952,336. 40
6, 274, 4.03,806. 40
30, 392. 293,180
36, 666, 696, 986. 40
858, 405, 750. 00
2,318,713,776.40
15,394,290,600
88, 339, 800
16, 262, 696, 250. 00
2, 407,053, 576. 40
207; 317, 460. 00
818, 971,850
1,026,289,310.00
3, 384,436, 986. 40
16, 301, 602,150
19, 686,039,136. 40
2, 889, 966, 820. 00
2, 507,043,800. 00
14, 090, 691, 030
474, 947, 865
16, 980, 657, 850. 00
2,981,991,665.00
142, 225, 600. 00
668,000
142, 793, 500.00
25, 000. 00
142, 250, 500. 00
2,075,000
2, 643, 000
2,100.000. 00
144,893, 500. 00
1,176,000. 00
2,627,000
3,803,000:00
61, 000. 00
1, 237, 000. 00
141,013, 500. 00
2,102,000. 00
2, 627,000
16,000
1, 627,000
61,000.00
3, 864,000. 00
141,029, 500. 00
3, 729, 000. 00
1,475, 583,300. 00
6, 284, 738, 400
7,760,321,700.00
518, 450,000
6,803,188,400
696,460, 675. 96
8, 456, 782,375. 96
.151, 663, 775. 96
861,328,125
8, 799, 650
861,328,126. 00
160,463,425.96
210, 322, 600. 00
361.986, 376. 96
1, 291, 607, 600. 00
128, 286, 219. 71
612, 778, 350
1,482,906,125
5, 320. 282, 275
42,071,900
823,100, 950. 00
1,844, 892, 500. 96
6,611,889,875.00
170, 357,119. 71
178; 010, 675. 96
1,653,593,975.96
194
REPORT OF THE SECRETARY OF T H E TREASURY
Adjusted service bonds.—On June 30, 1936, a balance of $93,549,050*
of adjusted service bonds was on hand and within the year $49,933,400'
of unissued stock was returned to the Division making $143,482,450to be accounted for, of which $106,260,100 was delivered, leaving a
balance on hand on June 30, 1937, of $37,222,350.
Individual registered accounts.—In connection with registered issuesof the United States and of securities of various Government instrumentalities, individual accounts are maintained; and on the interestbearing debt, interest is paid periodically in the form of checks. Theaccounts open on June 30, 1937, were as follows:
Number of
accounts
Individual registered accounts—Public debt issues:
Interest-bearing loans:
Pre-war and postal savings loans
Treasury loans
_
.
Special Treasurj'' notes and certificates of indebtedness .
Adjusted service bonds—United States Government life insurance
fund series
.
. .
.
.
36,167
•436,789
24
1
Principal
$156, 351, 380. 00
2, 555, 089, 900.00
1, 067,862, 000.00
600,157, 956. 40
472, 971
22,727
4, 269, 461, 236. 40
14, 666, 830. 00
._
495, 698
4, 284,128, 066. 40
Home Owners' Loan Corporation bonds .
. . . . . . .
Federal Farm Mortgage Corporation bonds
Consolidated Federal farm loan bonds
Mutual mortgage insurance fund
Matured loans (Home Owners' Loan Corporation bonds)
6,673
18, 352
8,6Sl
21
1
Total interest-bearing loans...
Matured loans (Liberty, Victory, and pre-war)
Total open accounts
Total open accounts
Grand total open accounts
._
-
228, 327,000. 00
214, 463,800.00'
41, 548,100. 00
90, 366.19
1, 000. 00^
32, 728
484, 430, 266.19
628,426
4, 768, 568,332. 69
There were 53,675 individual accounts closed for registered Liberty
bonds. Victory notes, special Treasury notes, pre-war issues, and
Treasury bonds and 13,541 accounts were decreased, representing the
retirement of securities amounting to $816,200,490 par value. In
connection with the same loans, 30,166 new accounts amounting to
$1,285,992,970 principal were opened; and 23,212 changes of addressfor the maihng of interest checks were made during the year.
Interest on registered Liberty and Treasury bonds was paid on due
dates in the form of 884,804 checks amounting to $77,091,973.73; ^
on registered securities of the pre-war and postal savings loans, 77,712
checks for $4,254,347.25 were issued; and on registered Treasury notesand certificates of indebtedness, interest payable by 5 checks amounting to $3,712,234.58 and in addition $16,520,178.32 was certified to theTreasurer of the United States. Also one check was issued in payment
of interest amounting to $22,507,108.04 on the 4 ^ percent adjustedservice bonds—United States Government life insurance fund account.
There were received from the Bureau of Engraving and Printing996,300 checks as stock, and there were canceled and dehvered to the
Destruction Committee 3,712 void checks.
Claims.—Claims for relief on account of lost, stolen, destroyed, and
mutilated securities handled by the Division during the fiscal year
were, as follows:
1 Includes overpayment of $33.76 received July 9,1937.
195
REPORT OF THE SECRETARY OF THE TREASURY
On h a n d J u n e 30, 1936
Received _
...
Number
of claims
N u m b e r of
securities
8,081
3,040
26, 420
8, 367
$3, 733, 480. 00
2, 352, 908.79
11,121
34, 777
6, 086,388. 79
598
379
62
30
67
2,071
1,151
379
410
400
397,058.04
870, 065. 00
24,130.00
65,300 00
2, 000.00
-..
T o t a l to be a c c o u n t e d for
Settled b y :
Reissue or r e d e m p t i o n of securities.- __
R e c o v e r y of securities
.
Disallowance of c l a i m s . .
C r e d i t allowed
Sent to S u r r e n d e r s Section for s e t t l e m e n t
_. _ _ .
. .
. ,.
T o t a l disposals
On h a n d J u n e 30, 1937.._
_
_
Par amount
of securities
1,126
4,411
1, 358, 553. 04
9, 995
30, 366
4, 727,835. 75
Safekeeping of securities.—During the year transactions in securities
held in safekeeping were as follows:
On hand J u n e
30, 1936
D i r e c t p u b l i c d e b t issues
I n s u l a r securities.
H o m e O w n e r s ' L o a n Corporation b o n d s
Total
$472, 838, 260
6, 720, 600
Received a n d
receipts issued
$1, 567,853, 206. 40
On h a n d J u n e
30, 1937
Released
$560, 976, 000
5,825
107,138, 325.00
82,117, 600
479, 664, 575
1,674, 991, 531. 40
643,093,600
$1, 479, 716, 206. 40
6,720, 600. OO
26,026,650.00
1, 511, 463, 256. 40
Mutilated paper and redeemed currency.—Mutilated paper verified
and dehvered to the Destruction Committee consisted of .32,095,946
sheets and coupons, of which 31,924,693 sheets and coupons were
received from the Bureau of Engraving and Printing and 171,253
sheets from the Division of Paper Custody.
Redeemed currency, unfit for circulation, counted and delivered to
the Destruction Committee during the year amounted to 901,940,716
pieces, representing $1,560,210,426.11, detailed as follows:
Old series i
N e w series
Currency
Pieces
U n i t e d States notes
Silver certificates
Gold certificates
T r e a s u r y notes
Fractional currency
.
Total
_
Face value
Pieces
Face value
276,158
696, 596
229, 325
1,019
6,180
$903, 202.00
883,612.00
5, 520, 675.00
5, 750.00
1,371.11
63, 620,087 $262, 233, 608.00
836, 517, 776 1,277,489,813.00
593, 575
13,172,395.00
1, 209, 278
7,314,610.11
900, 731, 438 1, 552,896,816.00
1 Large size currency in general circulation {prior to 1929.
In addition to the securities which were delivered to the Register
of the Treasury, the Division canceled and delivered to the Register
2,372,739 coupons, amounting to $297,896,837.74. Of these, 1,972,963
were public debt coupons amomiting to $267,716,428.44, and 399,776,
amounting to $30,180,409.30, were coupons from securities of Government corporations and credit agencies.
United States savings bonds.—On June 30, 1936, there were 2,605,342
United States savings bonds on hand with a maturity value of $370,012,325. During the year the Division received from the Bureau of
Engraving and Printing 2,571,000 bonds, with a maturity value of
196
REPORT OF THE SECRETARY OF T H E TREASURY
$819,550,000, and 479,064 bonds, with a maturity value of $109,340,425, were restored to stock. Of these bonds, 2,869,761, with a
maturity value of $832,049,550, were issued, and 5 bonds, amounting
to $2,500, were delivered to the Register of the Treasury, leaving a
balance on hand of 2,785,640 bonds, with a maturity value of
:$466,850,700.
\
Original registration stubs received and audited, representing sales
of United States savings bonds, and savings bonds redeemed prior
to maturity before and after discharge of registration, monthly, during the fiscal year 1937, are shown in the following table:
Sales and redemptions of United States savings bonds, monthly, fiscal year 1937
N u m b e r of pieces, b y d e n o m i n a t i o n
Maturity
value
M o n t h of issue or r e d e m p t i o n
$50
$25
$100
$500
$1,000
Total
Sales—original registration s t u b s received a n d a u d i t e d
SEKIE.S B
32,075
28, 6e5
28, 873
30, 648
29, 753
61,130
30, 705
21,273
21,487
22,099
21.744
56.967
169,863
133, 442
131, 099
136, 613
131,418
239, 543
$47, 822, 425
34, 376, 675
34, 214,475
35, 241, 550
34, 257, 325
80.190, 950
97,056 174, 275
941, 978
266,103, 300
99,422
42, 501
37, 615
27,035
21, 254
23, 663
311,828
208, 214
207, 521
172,036
146, 345
164, 737
128, 640, 676
61. 544, 750
66,836, 050
42,877, 850
34,463, 050
38, 655,800
T o t a l , series C
268. 239 211,128 364, 368 115,466 251,490 1,210,681
362,917,176
T o t a l sales
469, 383 384, 692 660, 308 212, 511 425, 765 2,152, 659
629,020.475
1936—July..
August
'September
October
November
December
_
31, 599
25, 325
24, 413
25,925
25, 356
40, 946
57, 516
44, 922
43, 445
44. 726
41, 962
63,379
201,144 173, 564 295,940
T o t a l , series B
17, 968
13, 257
12, 881
13, 215
12, 613
27,121
.SERIES c
1937—January
February
March
April..
May
June...,
63, 323
46.496
47, 610
42, 206
37,196
41,408
.^.^
42,894
36, 063
37, 740
32, 892
28, 823
32,716
81,134
63, 747
66. 338
64, 521
46. 746
o2, 883
35,055
19,407
19,218
15,382
12, 327
14, 067
Redei n p t i o n s ]irior to Eo a t u r i t y after dis(jharge of re gistration
SERIES A
1936—July
August
September.
October
November
December
1937-January
February
March..
April,
May
June..
'...
. ... ..
. ..
T o t a l , series A .
1,728
1.4.55
1,765
1.781
1,380
1,512
1,475
1,133
1,487
1,457
1,252
736
1,151
1,078
1,095
1,224
1.060
1,076
948
831
1,016
1,116
923
614
2, 215
2,072
2,349
2,434
2,207
2,150
1, 977
1,622
2,411
2,402
2,066
1,029
670
646
634
748
624
651
606
579
788
695
587
295
688
602
591
772
688
753
664
466
696
• 778
552
325
6.452
5,853
6,434
6, 959
5,959
6,142
5,670
4,531
6,398
6,448
5,380
2,899
$1, 346, 250
1. 222, 475
1, 241, 775
1,495,125
1, 308, 200
1, 385, IpO
1, 248, 975
977, 575
1,419,075
1,457,925
1,129, 550
619, 500
17,161
12,032
24, 834
7,523
7,675
69.125
14,850, 625
1,515
1,821
2,609
3, 232
2,534
3,176
3, 324
3,549
4,445
4.359
3,096
1,543
969
1,322
1,854
2, 232
2,065
2,443
2,424
2,452
3.302
3,238
2,102
1,199
1, 701
1,904
2,941
3,405
3,086
3, 966
3,813
3,757
5,131
5,282
3,669
1,857
409
499
706
806
652
880
966
946
1,358
1,417
977
610
623
634
787
926
891
1,100
1,373
1, 371
1,761
1,848
1,403
694
5,117
6,180
8,897
10, 600
9,228
'11.565
11,889
12, 075
16, 987
16,144
11,246
6,803
983.925
1,185, 625
1, 592, 025
1,860, 900
1, 692, 200
2.138,150
2,436,100
2, 431,025
3, 219, 325
3, 355, 575
2, 440,875
1, 233, 225
36, 202
25,602
40, 512
10.116
13,300
124, 731
24, 568, 850
SERIES B
1936—July.
August
September
...
October
November . . .
December
1937—January
February...
March
April
May..
June
_
T o t a l , series B
_
. . . .
...
.1
REPORT OF THE SECRETARY OF THE TREASURY
197
Sales and redemptions of United States savings bonds, monthly, fiscal year 1937—Con..
Number of pieces, by denomination
Month of issue or redemption
$25
$60
$100
$500
$1,000
Total
Maturity
value
Redemptions prior to maturity after discharge of registration
.
SERIES c
1937—February
March
A pril..
May
June
.
Total, series C.
.
Total redemptions after discharge of registration
510
1,094
1,293
889
340
698
888
638
602
1,244
1,353
876
184
448
361
269
30
312
711
702
320
30
1.948
4,196
4, 597
2,882
$30,000493,950
1,121, 650
1, 094, 525
686. 225
3,786
2.464
4,076
1,262
2,075
13, 652
3, 326, 350*
66,149
40,098
69, 421 18,890
22,960
207, 508
42, 745, 725'
Redemptions prior to maturity before discharge of registration
SERIES A
1937—June
SERIES B
1937—June
SERIES C
1937—June
Total redemptions before discharge of registration
Grand total redemptions
452
301
682
200
218
1,853
$412,660'
1,174
617
1,013
297
394
3,495
704,000"
521
383
629
170
318
1,921
488,075-
2,147
1,301
2, 224
667
930
7,269
1, 604, 625-
71, 645 19, 657 23, 880
214, 777
44, 350, 350-
58, 296 41, 399
Register of the Treasury
The Register of the Treasury performs the final audit and ha&
custody of all retired public debt securities, including interest coupons, and conducts a like function with respect to the securities of
the Home Owners' Loan Corporation, Federal Farm Mortgage Corporation, Federal Housing Administration, and the consolidated
obligations of the Federal land banks. The Register also retires
bonds of the insular possessions which are exchanged for other
securities.
All pubhc debt securities redeemed by the Treasurer of the United
States must be audited by the Register and certification thereof
made to the Comptroller General before credit is extended to the
Treasurer for amounts expended. The Register also establishes
credits due the Federal Reserve banks and the Division of Loans and
Currency for securities forwarded by them for retirement oh account
of exchanges, replacements, transfers of registration, etc.
The following statement sets forth, by class of security, the total
number and face value of documents which were received by the
Register's Office on account of transactions during the fiscal year
1937:
198
REPORT OF T H E SECRETARY OF T H E TREASURY
S u m m a r y of securities received by the Register of the Treasury on account of transactions during the fiscal year 1937
Bearer
Registered
Security
Pieces
Amount
Pieces
-
Amount
Redeemed
U n i t e d States securities:
P r e - w a r a n d postal savings b o n d s
L i b e r t y loans
Treasury bonds _ .
T r e a s u r y notes
U n i t e d States savings b o n d s
Adjusted service b o n d s
—
Certificates of i n d e b t e d n e s s . ._
T r e a s u r y bills
..
T r e a s u r y (war) savings securities
I n t e r e s t coupons . . .
•
O t h e r securities:
H o m e Owners'-Loan Corporation:
Bonds
_
I n t e r e s t coupons
I n t e r e s t checks
F e d e r a l F a r m M o r t g a g e Corporation:
I n t e r e s t coupons
Interest checks...
__.
Consolidated F e d e r a l farm loans of t h e
Federal land banks:
I n t e r e s t coupons
I n t e r e s t checks
Federal Housing Administration:
M u t u a l mortgage insurance fund,
debentures
M u t u a l mortgage i n s u r a n c e fund,
interest checks _
__
Total
203
90, 659
42
97,360
$29,130. 00
28, 828, 350. 00
156, 000. 00
1,823, 426,160. 00
927
75, 581
60,959
9, 429, 338
2, 633, 700. 00
3, 666,199, 000. 00
79, 068. 50
2 668, 484, 896.07
20,197
3, 702,816
52, 067, 075. 00
3 56, 335, 514.46
1, 272,486
760, 44.0
15, 611, 007
941
12, 209
67
206
232, 655
9, 266, 307
627
$1, 806,410. 00
6,813, 750. 00
376, 400.00
119, 833, 000. 00
36, 324,466. 25
1 463, 265, 350. 00
447,153, 000. 00
3, 605
47,496. 00
30
82, 012, 000. 00
11,190
6, 266, 916. 00
36, 664
6,160, 620.58
14, 669
1,164, 334. 63
26
30, 769. 71
14
396. 74
4 24, 269, 402.13
8 21, 000,160. 2i
6. 243. 388. 446. 36
9. 578.110 1,170, 254, 906. 91
R e t i r e d on account of exchanges for other securities, etc.
U n i t e d States securities:
P r e - w a r a n d postal savings b o n d s
L i b e r t y loans
Treasury bonds
__
T r e a s u r y notes
U n i t e d States savings b o n d s
Certificates of i n d e b t e d n e s s
T r e a s u r y bills
T r e a s u r y (war) savings securities
First 3H percent Liberty Loan interim
certificates
_
Adjusted service b o n d s
O t h e r securities:
I n s u l a r possessions loans
H o m e O w n e r s ' L o a n Corporation b o n d s .
Federal F a r m M o r t g a g e C o r p o r a t i o n
bonds
Consolidated F e d e r a l farm loans of t h e
Federal l a n d b a n k s , b o n d s
Federal H o u s i n g A d m i n i s t r a t i o n : M u t u a l mortgage insurance fund, debentures
F e d e r a l h o m e loan b a n k s , consolidated
debentures
Total
_
2,105
1,614
450,420
230, 015
$636, 280. 00
133, 200. 00
1,884,470, 500. 00
3, 844,173, 750. 00
18, 568
1,136, 776, 000. 00
17
1, 200. 00
832
41, 600. 00
1,627
437,103
1, 627, 000. 00
576, 074,460. 00
768
1,936
1,176, 000. 00
12, 335, 300. 00
116, 674
109, 646, 900. 00
7,438
32,144, 900. 00
21, 252
34, 320, 600. 00
1,403
1, 764,800. 00
2
7,450. 00
78
465, 000. 00
1, 279,463
7,588, 324,880. 00
132.115
532,550,940.00
16, 073
93, 931
7
9,749
7
-SO
$8,415,140.00
268,
155,
4,
48,
483, 750. 00
738, 000. 00
202,100. 00
262, 000. 00
<^100.00
» Deduct.
» Does not include 2 pieces, $100, applying to April 1937, or 6,131,390 pieces, $306,569,600, acted upon in
1937, but applying to 1936 settlements.
• 2 Represents audited figures through February 1937 settlement and includes unaudited figures for March
and April. Does not include 1,949,792 pieces, $146,781,776.47, covering May and June, not received from
-Treasurer of the United States.
3 Represents audited figures through February 1937 settlement and includes unaudited figures for March
and April. Does not include 768,804 pieces, $15,362,886.65, covering May and June, not received from
Treasurer of the United States.
* Represents audited figures through February 1937 settlement and includes unaudited figures for March
and April. Does not include 478,823 pieces, $10,259,401.26, covering May and June, not received from
Treasurer of the United States.
* Represents audited figures through February 1937 settlement and includes unaudited figures for March
and April. Does not include 180,849 pieces, $6,061,839.66, covering May and June, not received from
Treasurer of the United States.
199
REPOET OF THE SECEETAKY OF THE TREASUEY
.Summary of securities received by the Register of the Treasury on account of transactions during the fiscal year 1937—Continued
Bearer
Registered
Security
Amount
Pieces
Pieces
Amount
Unissued stock retired
•United States securities:
P r e - w a r a n d postal savings b o n d s
L i b e r t y loans
__
Treasury bonds
T r e a s u r y notes
__
U n i t e d States savings b o n d s
Adjusted service b o n d s .
T r e a s u r y bills
,
I n t e r e s t coupons
_._
T r e a s u r y (war) savings securities ._
-Other securities:
I n s u l a r possessions loans
H o m e Owners' Loan Corporation:
Bonds
.
I n t e r e s t coupons
Federal F a r m Mortgage Corporation:
Bonds —
I n t e r e s t coupons
Consolidated F e d e r a l farm loans of t h e
Federal land banks:
Bonds
I n t e r e s t coupons
Total
136
233,367
$65, 760.00
206, 903, 250. 00
3
194, 770
136, 932
N o value
44, 843, 660. 00
6 846 600 00
421,692
186
158, 932
$186, 954, 860. 00
4, 879, 700. 00
1,146,440, 900. 00
18, 541
3, 424, 065
20
1, 038,145, 000. 00
411, 603, 447.46
100. 00
44
61,000 00
460,180
474,141
667, 228,850. 00
32, 776, 431. 71
3,299
110 244, 000. 00
13
280, 601
16, 000. 00
16, 003, 687. 75
. 163
100, 031, 500. 00
61
262, 860
15, 000. 00
7, 045, 960. 03
22
47,100. 00
5,491, 271
3, 510,108, 926. 95
668, 736
469, 042, 760 00
Recapitulation'
^United States securities:
P r e - w a r a n d postal savings b o n d s
Liberty l o a n s . . .
Treasury bonds
Treasury notes..
U n i t e d States savings b o n d s
Adjusted service b o n d s
Certificates of i n d e b t e d n e s s
T r e a s u r y bills .
T r e a s u r y (war) savings securities
First 3 ^ percent Liberty Loan interim
certificates
I n t e r e s t coupons . .
O t h e r securities:
I n s u l a r possessions loans
H o m e Owners' Loan Corporation:
Bonds
I n t e r e s t coupons
I n t e r e s t checks
Federal F a r m Mortgage Corporation:
Bonds
_
I n t e r e s t coupons
I n t e r e s t checks
'Consolidated F e d e r a l farm loans of t h e
JFederal l a n d b a n k s :
B o n d s . _I n t e r e s t coupons
I n t e r e s t checks
_
Federal Housing Administration:
M u t u a l m o r t g a g e insurance fund, debentures
M u t u a l m o r t g a g e i n s u r a n c e fund, interest checks
.
F e d e r a l h o m e loan b a n k s , consolidated
debentures.
_ ___
Total
2,308
513,965
450, 647
486, 307
$665, 410. 00
216,916, 400. 00
1, 889, 506, 200. 00
6, 813, 040,800. 00
927
112, 680
60,979
2, 533,700. 00
6, 841,120, 000. 00
79,168. 50
17
12,853, 403
1, 200. 00
980,088,343.63
17,150
245, 576
93,998
216
437,174
9, 403, 071
634
$10, 287,310. 00
212, 717, 000. 00
268 860,150 00
275,671,000.00
85, 370,116. 25
470,163,550.00
495, 406, 000. 00
3, 685
47,395. 00
1,627
1, 627, 000. 00
802
1, 237, 000. 00
907, 480
4,176, 956
1, 296, 360, 375. 00
89,110, 946.16
6,264
204, 591, 300. 00
116, 687
1, 663,087
109, 662,900. 00
40, 263,089.88
21. 303
1,023,290
78
34, 336, 600. 00
28,046,120. 24
11,190
6, 266,915. 00
7,601
132,176,400. 00
36,664
6,180, 620.68
1,426
1, 801,900. 00
14, 669
1,164, 334.63
28
38, 219.71
14
396.74
465, 000. 00
22, 281,741 17,341,822, 263. 31
10, 278, 961 2,171,848, 608.91
NOTE.—June 1937 settlement subject to audit on United States savings bonds redeemed.
200
REPORT OF THE SECRETARY OF THE TREASURY
Division of Public Debt Accounts and Audit
This Division maintains administrative control accounts for all
official transactions in the public debt conducted by the variousTreasury offices and the Federal Reserve banks as fiscal agents of
the United States, and also for transactions involving paper used for
printing public debt and other securities, United States currency,,
stamps, etc., and miscellaneous securities and documents in the
Bureau of Engraving and Printing. Also included in the administrative control accounts of this Division are transactions in bonds of
the Home Owners' Loan Corporation and the Federal Farm Mortgage
Corporation, in consolidated Federal farm loan bonds of the Federal!
land banks, and in debentures of the Federal home loan banks and
the Federal Housing Administration, conducted by the Treasury and
Federal Reserve banks, similar to those in public debt securities.
Numerous administrative auc^it functions are performed in connection,
with the foregoing. The Division also maintains control accounts
for various classes of unissued currency in reserve stocks of the
Treasurer of the United vStates, and conducts administrative examinations and physical audits of such unissued stocks of currency and
of cash balances in custody, and of collateral securities held in trust
in the offices of the Treasurer of the United States.
During the fiscal year 179 physical audits were conducted, involving securities, currency, paper, interest checks, etc., amounting to
about $50,000,000,000 in face value and 100,000,000 in number of
pieces.
The Division determined and certified credits to the cumulativesinking fund and amounts in the sinking fund available for expenditure from time to time, interest on all classes of public debt securities which became due and payable on their respective interest-payment dates, and the amount of each form of public debt securities
and unpaid interest outstanding each month. I t prepared estimates
of interest to become payable on public debt securities in future
fiscal years, and of expenditures to be made on account of retirements,
for the sinking fund and other special accounts, and prepared statements showing the accountability of Federal Reserve banks for publicdebt securities for the use of Federal Reserve Board examiners in
their periodical examinations of those banks. Numerous data pertaining to public debt transactions for various interested offices and
individuals were also compiled.
Division of Paper Custody
The Division of Paper Custody receives from the contractors all
distinctive paper used in printing public debt obligations and paper
currency of the United States, Cuba, and the Philippine Islands;
issues such paper to the Bureau of Engraving and Printing against
orders to print, and certifies to vouchers in payment of the paper.
The Division also maintains records of all receipts and issues of Federal
Reserve notes stored in the Federal Reserve vault.
The following tables summarize the operations of this Division
during the fiscal year 1937:
REPORT OF THE SECRETARY OF THE TREASURY
201
Receipts and issues of distinctive and nondistinctive paper during the fiscal year 1937
Sheets
Kind
Distinctive paper for United States currency and Federal Reserve notes, 12 subjects
Distinctive paper for United States bonds
Parchment, artificial parchment, and parchment deed
paper
Miscellaneous paper
Distinctive paper for Cuban currency
_.
Distinctive paper for Philippine Islands currency
Postal card for Philippine Islands
._.
Total
On hand
June 30,
1937
On hand
July 1,1936
Receipts
Issues
15,221,489
4, 289,901
83, 599, 997
1,471,666
77,193, 265
2, 017, 220
21, 628, 221
3, 744, 347
74, 516
404,048
34, 230
349,157
19,844
426,141
800, 647
381,465
2,016, 660
348,434
890,864
400, 462
1,801, 224
•11,000
152, 223
313,831
15, 233
563, 583
8,844
20, 393,185
88, 695, 666
82, 662,469
26,426, 282
NOTE.—390 sheets of experimental paper were transferred in Bureau of Engraving and Printing to regular
•currency account and are not included in above figures.
Federal Reserve notes, series 1931^ received and issued during the fiscal year 1937
Federal Reserve bank
Boston.
New York...'.
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago.
St. Louis
Minneapolis..
Kansas City__
Dallas
San Francisco.
Total...
On hand July
1, 1936
$118, 660,
323,100,
111, 320,
39, 780,
128,320,
86,000,
172, 660,
95,120,
61,140,
68,480,
59,840,
86, 280,
1,360, 600,000
Received
Issued
On hand June
30, 1937
$206,280,000
625. 560,000
139, 920,000
323, 100,000
105, 000,000
96, 600,000
401, 160,000
88, 680,000
63, 000,000
80, 280,000
41, 160,000
237, 240,000
$167,800,000
374,160,000
128,040,000
229, 240,000
112,300,000
82,860,000
322,000,000
70,360,000
41,080,000
51,680,000
64,120,000
144,420,000
$157,040,000
574,500,000
123, 200,000
133,640,000
121,020,000
99, 740,000
261,820,000
113,440,000
83,060,000
97,080,090
46,880,000
179,100,000
2,407,980,000
1, 778,060,000
1,980, 620,000
There were no transactions during the year in Federal Reserve
notes, series 1928, or in Federal Reserve bank notes, series 1929, of
which $2,813,100,000 and $450,800,000, respectively, were on hand.
Destruction Committee
The following table summarizes the number of pieces and the face
amount of securities received from the various offices and destroyed
by the Destruction Committee during the fiscal year 1937:
202
REPORT OF THE SECRETARY OF THE TREASURY
Number of pieces and face amount of securities destroyed by the Destruction Committeeduring the fiscal year 1937
Face value
Pieces
D i v i s i o n of L o a n s a n d C u r r e n c y a n d
Treasurer'of t h e U n i t e d States:
N e w series:
63, 777,017
U n i t e d States notes
64,172, 316
Silver certificates (1928)
693, 575
Gold certificates..
2,761
Silver certificates (act of 1933).
Silver certificates (act of 1934). 773, 616, 029
$262,838,408.00
64,170, 235. 00
13,172, 395.00
27, 610.00
1, 216, 371, 618.00
-$1, 556, 580, 266.00
902,161, 698
Old series:
U n i t e d S t a t e s notes
Silver certificates
Gold certificates
T r e a s u r y notes
F r a c t i o n a l notes . -
.
Total . .
C o m p t r o l l e r of t h e C u r r e n c y a n d
national banks:
N e w series: N a t i o n a l b a n k notes
(retired)..
....
903, 202.00
883, 612.00
6, 520, 676. 00
6, 750.00
1, 371.11
276,158
696,596
229, 326
1,019
6,180
1, 209, 278
7, 314, 610.11
903, 370, 976
1,662,894,876.11
c
96, 648,042.50
7,748,7611^
96, 548, 042. 60
7, 748, IblM
Old series:
N a t i o n a l b a n k notes ( r e t i r e d ) .
F e d e r a l Reserve b a n k notes
(retired)
2, 679, 813. 00
208, AlOyi
28, 278. 60
16, 216^^
Total
224, 687
.2, 708, 091. 60
7, 973, 4 3 8 ^
99, 256,134. 00
C o m p t r o l l e r of t h e C u r r e n c y a n d
F e d e r a l Reserve b a n k agents:
N e w series:
130, 030,102
F e d e r a l R e s e r v e notes
924, 630
Federal Reserve bank n o t e s . .
c
1, 630, 018, 520. 00
14, 800,100. 00
1, 544, 818, 620.00
130, 954, 732
Old series: F e d e r a l R e s e r v e n o t e s .
7, 974, 020. 00
474, 394
Total..
474, 394
7, 974, 020. 00
131,429,126
1, 552, 792, 640.00
B u r e a u of I n t e r n a l R e v e n u e :
Miscellaneous s t a m p s from:
S t a m p Division
S t a m p Division ("obsolete
and surplus")
Tobacco Division _
Sales Tax. Division
Alcohol T a x U n i t . .
Silver T a x U n i t
32,136, 111. 04
26, 204, 405. 56
1, 097, 734. 67
95, 269. 75
42, 229. 71
6..67
Total. '-
69, 575, 757. 39
Register of t h e T r e a s u r y :
I n t e r e s t coupons, u n i s s u e d
3, 631,183
C o u p o n b o n d s a n d notes. F e d e r a l
3,192, 996
' Reserve lots exchanged
C o u p o n b o n d s a n d notes, F e d e r a l
351,187
R e s e r v e lots, u n i s s u e d
C o u p o n b o n d s a n d notes. T r e a s 3,605, 268
u r y cases exchanged
C o u p o n b o n d s a n d notes, re5, 247, 063
deemed
Registered b o n d s a n d notes, u n issued
805,548
Old loan registered securities, u n 39,447
issued
Old loan bearer securities, u n i s 766
sued
:
Registered U n i t e d States savings
197, 763
bonds, unissued
.. .
Registered w a r savings s t a m p s ,
3, 711
redeemed
I n t e r e s t coupons, p a i d lots, re193, 977, 202
deemed
F e d e r a l farm loan b o n d s a n d
645, 641
coupons
100, 947, 486. 42
1, 427, 258,100.00
1, 621, 454,850. 00
1, 978, 567, 300. 00
7,164, 331, 300.00
1, 545, 979, 650.00
97, 799, 950.00^
336,400.00'
38,237,525.00.
18, 554.18
2, 320, 669, 338. 3 1 %
1,132,756,181.96
17, 428, 345, 635.871^"
211,497,765
c
EEPORT OF T H E SECRETAEY OF T H E TEEASUKY
203
Number of pieces and face amount of securities destroyed by the Destruction Committer
during the fiscal year 1937—Continued
•
Face value
Pieces
Public Debt Service, photostats
Division of Loans and Currency,
Security Section, interest checks...Farm Credit Administration, coupons
cut from bonds
244
3,712
Grand total
1, 254, 275, 26Ui
Coupons
$2, 254,198
$75, 276,167. 26
2, 254,198 20, 778,141, 200.63^
Sheets
Division of Loans and Currency (Bureau of Engraving and
Printing, spoilage):
Money of all kinds
Postage stamps
Internal revenue stamps
.
Bonds and certificates of indebtedness
Customs and miscellaneous stamps
..
Postal savings certificates
Experimental, security paper
Void coupons
3, 701, 596^^
8,882,188^12i,.^02oo
4,434,69764448%s7225
484, 3381.^
4, 833, 48085%oo
346, 278
5,030
Coupons
9, 237 087
22, 687, 6091103122^6493400
Total
Division of Loans and Currency (Division of Paper Custody):
Bond paper _.
__
Philippine currency
Total
-
Grand total
__
.
.
171, 249
4
171, 253
22,858,8621103122^6493400
9, 237, 087
PUBLIC HEALTH SERVICE i
The expansion of the Federal health program through the increase
of cooperative work with the States, under the administration of
title VI of the Social Security Act, and the consequent stimulus to
State and local health organizations have resulted in a wider range of
activities in all divisions of the Public Health Service,
Public health work under the Social Security Act
Under section 601 of title VI of the Social Security Act, of August
14, 1935, an appropriation of $8,000,000 was authorized for each
jB.scal year, beginning with 1936, to assist States (including the District
of Columbia), Territories, counties, health districts, and other political subdivisions of the States in providing more adequate pubhc health
services. For the fiscal year 1937 there was added $881,859.21, carried forward from the preceding fiscal year, making the total amount
available for distribution $8,881,859.21. On the basis of budgets
submitted by the States and approved by the Public Health Service,
the amount actually paid to the States was $7,765,203.33, leaving
$1,116,655.88 to be added to the appropriation for 1938.
1 More detailed information concerning the activities of the Public Health Service is contained in
a separate report of the Surgeon General.
204
REPORT OF THE SECRETARY OF TflE TREASURY
The following table shows the amount^ allotted to each State,
District of Columbia, Alaska, and Hawaii for the fiscal year 1937:
Allotments io States from funds appropriated under the provision of section 601 of
the Social Security Act, fiscal year 1937
State, etc.
Alabama
Alaska
Arizona
Arkansas
California
.
Colorado
Connecticut
Delaware.
..
District of C o l u m b i a
Florida . . . . .
Georgia
Hawaii .
..
Idaho
Illinois . . . . . . .
Indiana
Iowa . . .
.
Kansas...
Kentucky
Louisiana
Maine .
Maryland
Massachusetts .
Michigan
Minnesota
Mississinni
Missouri .
Montana
Amount
..^
-_
..
..
$243, 752.00
23,591.98
57,074. 00
159, 249. 50
215,820.66
88, 065. 66
98,040. 00
31,024. 00
61, 943. 00
129, 630. 00
262, 913. 00
53,688.00
62, 859. 00
397,209.79
110,572.46
108, 437. 25
87,169. 00
229, 928. 00
177, 039. 00
60,609.00
125, 433. 00
185, 598. 00
280, 289. 50
175,935.63
181, 992. 88
207,109. 40
44,958.00
State, etc.
Nebraska .
Nevada
New Hampshire
...
N e w Jersey
New Mexico.
New York
N o r t h Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania _
R h o d e Island
.
S o u t h Carolina
South Dakota
Tennessee
......
Texas..
Utah.
Vermont
Virginia
..
Washington
W e s t Virginia.
Wisconsin
Wyoming...."
i.
Total
.—:
Amount
.
...
..
.
:.-..
$59,311.00
23, 548. 00
33,062.15
136,150. 50
69,157. 00
669, 620. 00
314, 406. 00
66,416. 25
344, 918. 32
173,065.00
64, 544. 00
383, 700. 00
55, 633. 00
182, 902. 00
64, 718. 50
255, 296. 00
302, 811.30
58, 409. 00
38,142. 87
214,972. 00
100, 439. 00
158, 929. 00
137, 402. 25
18, 729. 50
7,766, 203.33
The major purposes for which the States budgeted the allotments
during the fiscal year 1937 are shown in the following table:
Major purposes for which allotments to States under section 601 of the Social Security
Act were budgeted by the States, fiscal year 1937
Purpose
Local health.services.
T r a i n i n g of p u b l i c h e a l t h workers
Venereal disease control
P r o m o t i o n a n d supervision of local h e a l t h services.
O t h e r central a d m i n i s t r a t i v e services
S a n i t a r y engineering
P r e v e n t i o n of c o m m u n i c a b l e diseases
L a b o r a t o r y services
I n d u s t r i a l hygiene
Tuberculosis control
Vital statistics
Public health nursing
Another
Total.
Number
of States
Amount
Percent
$3, 603, 478. 35
1,395, 208. 83
686, 969.10
529, 277.14
384, 830. 39
367, 019.95
366, 616. 03
328, 155. 59
• 286, 071. 40
211, 260. 02
111, 400. 30
100, 236.43
416, 347. 22
41.06
15.90
7.83
6.03
4.38
4.18
4.06
3.74
3.26
2.41
1.27
1.14
4.74
1 8, 776,870. 75
100. 00
1 I n c l u d e s balances carried forward from previous year.
I t is now possible to evaluate some of the more tangible results of
the stimulus given to public health work in the various States by this
social security legislation. Of 3,069 counties in the United States, 946
now have full-time health services, an increase of over 50 percent since
January 1, 1935. Furthermore, State and local annual appropriations
for this work are now $7,500,000 higher than they were on that date,
although the States are required to match with new funds only 35 percent of the $8,000,000 to be allotted annually, which shows the stimu
REPORT OF THE SECRETARY OF THE TREASURY
205
lating effect of this legislation. The Federal funds provided for
approximately 2,500 additional pubhc health personnel in the States.
In order to carry out the provisions of section 603 of the Social
Security Act, an appropriation of $1,320,000 was made to the PubUc
Health Service for the fiscal year 1937 for investigation of disease and
problems of sanitation and for various administrative expenses. Of
this appropriation, $100,986 was used for administrative expenses in
connection with the grants to States, pursuant to section 502 of the
act, $91,412 for other administrative expenses, and the remainder for
investigations of diseases and problems of sanitation.
In addition to the five regional offices estabhshed early in 1936 for
consultant purposes, it became necessary to augment the advisory
services in the central office in Wasliington by the addition of consultant personnel to give expert advice on dental hygiene, nutrition,
laboratory services, and accounting. During the year, Pubhc Health
Service oflS.cers were assigned to several of the States as advisers, and
one officer completed a 4-year assignment as acting State health
officer in the State of Washington.
The cooperative work of the Division of Venereal Diseases with
State and local health departments was expanded under the provisions
of the Social Security Act. Officers were assigned in an advisory
capacity, for varying periods of time during the year, to State health
departments in 17 States. A discussion of the activities under the
Division of Venereal Diseases will be found on page 210 of this report.
Division of Sanitary Reports and Statistics
The Public Health Service continued its important function of collecting and disseminating general information and statistical data
regarding health conditions and the prevalence of communicable diseases in the United States and foreign countries. This information
was summarized and published weekly in the Public Health Reports,
In accordance with provisions of law, these reports are made available
to pubhc health officers, sanitarians, and libraries throughout the
United States.
Health conditions remained favorable in this country although the
preliminary death rate for 25 States in the calendar year 1936 was
11.3 per 1,000 population, a 5 percent increase over the rate (10.8) for
1935, and the highest figure since 1929. Decreases were recorded in
the death rates from typhoid fever, smallpox, whooping cough, diphtheria, and poliomyehtis, and for the sixth consecutive year maternal
mortality declined. On the other hand, mortahty rates from heart
diseases, cancer, cerebral hemorrhage, and diabetes continued their
upward trend. Preliminary reports indicate that the mortahty rate
from tuberculosis showed no decline in 1936 compared with the preceding year, interrupting the annual downward trend in this disease
which has been observed for many years.
The monthly publication, The Health Officer, designed to present in
popular form a digest of current public health information for commissioned and other officers of the Service, health officials throughout
the country, and for other workers in public health aiid allied fields of
welfare and education, was first issued in the latter part of the preceding fiscal year with a circulation of 1,000 copies. It was found
necessary to increase the distribution to 2,500 copies by the end of the
first year.
16109—38
15
206
REPORT OF THE SECRETARY OF THE TREASURY
In answering routine inquiries for health information and requests
for Service publications from the general public, 261,199 copies of
publications were distributed during the year, compared with 130,802
copies during the fiscal year 1936. '
Domestic Quarantine Division
In addition to its regular duties, relating to the enforcement of the
interstate quarantine regulations and cooperative activities with the
States in sanitation and the prevention of spread of epidemic diseases,
this Division administers section 601 of title VI of the Social Security
Act, details of which are given on page 203.
Public health 6?^p[^'n^m7?.^.—The supervision of water supplies
serving common carriers, sanitation of vessels, railroad cars and yards,
and shellfish sanitation were, the chief activities of the public health
engineers. Of the 2,096 water supplies reported by common carriers
in interstate traffic, 1,921 were inspected, 1,903 inspection reports
were reviewed, and 4,005 certificates were prepared and issued.
Fifty-six supplies were found unfit for use and certificates withheld.
Of the 1,875 vessels subject to the interstate quarantine, regulations,
55 percent were inspected by personnel of interstate sanitary districts,
and 6 vessels received notices of nonapproval. In a group of 441
water samples from 122 vessels during the period of 2 months at New
York, 11.3 were questionable. Only 12 cases of typhoid fever were
reported among passengers and crews of vessels in interstate traffic.
During the year.2,424 certificates issued by shellfish producing
States were listed; 7 growing areas and 478 shucking and packing plants
were inspected to determine the efficiency of State control. I t was
found necessary to continue to withhold endorsement of the control
measures in one State.
Reciprocity with Canada was carried on in connection with certification of water supplies of common carriers in international service
and the issuance of certificates to shippers of shellfish.
Flood emergency health work.—^Following the Ohio-Mississippi
floods in January and February 1937 the public health needs of the
flooded areas assumed enormous proportions. Thousands of individuals over a widespread area were made temporarily or permanently
homeless and public health preventive measures! were urgently needed;
thousands of typhoid inoculations were necessary and the prevention
of pneumonia, intestinal infection, and the possibility of mass illness
in epidemic form among children ^^as'important. There was an immediate call for public health.nurses, laboratory technicians, sanitary
engineers, and inspectors. Many, of the States in the afflicted area
had unexpended balances from their social security allotments and
they requested and received permission to use these funds for the
emergency public health needs. Thus, delays were avoided, preventive and clean-up work was started immediately, and epidemics
and increased incidence of illness were prevented.
From the regular appropriation for the prevention of epidemic diseases, $40,000 was released for the purchase of vaccines and other
biological products for use in the flood-stricken area. Under authority
of Public Resolution No. 7, approved February 24, 1937, an allocation
of $1,072,677 was made from the Emergency Relief Appropriation
Act of 1936 to the Public Health Service for flood relief. A total of
REPORT OF THE SECRETARY OF THE TREASURY
207
$964,345 was obligated by June 30, 1937, of which $104,677 covered
expenses of the Service in the flood areas, and $859,668 was allotted to
the States as follows: Arkansas, $84,866; Indiana, $90,618; Kentucky,
$413,689; Louisiana, $7,800; Mississippi, $14,096; Missouri, $40,333;
Tennessee, $32,160; West Virgmia, $62,826; Ohio, $66,210; and Illinois,
$47,070. The unobligated balance of $108,332 was rescinded in July.
During the reconstruction period the Public Health Service assisted
the affected States through the assignment of 17 medical officers for
temporary duty until such time as these positions could be filled from
local personnel—5 officers from the regular corps of the Public Health
Service were detailed to duty under the State health department of
Ohio, 10 in Kentucky, and 2 in Tennessee.
Cooperation with the Works Progress Administration.—-In cooperation
with the Works Progress Administration the program of community
sanitation begun in 1933 was continued in active operation in 39
States. On the average, 19,553 laborers per month were employed,
serving 1,301 counties. During the year 470,009 sanitary units were
built and 25,824 were restored to sanitary condition. Working in
101 counties of 7 States, 62,126 openings of 1,369 mines were sealed,
thereby excluding from streams approximately 250,000 tons of acid.
In 16 States the malaria control drainage resulted in the construction
of approximately 4,000 miles of ditches by an average of approximately 18,000 men per day. To date, nearly 425,000 acres of mosquito breeding areas have been drained; from 15 to 16 million people
live within 1 mile of these projects.
Cooperation with other Federal agencies.—One Service officer was
continued on duty as special adviser with the Social Security Board in
connection with assistance to the blind, while another officer continued
service with the Resettlement Administration as director of medical
care for its clients. Cooperation was given to 20 Federal bureaus and
subdivisions by engineering personnel, and it is estimated that approximately 29 percent of the time of the sanitary engineers was devoted to
duties of this nature.
Division of Foreign and Insular Quarantine
An important change in quarantine administrative procedure was
instituted during the latter half of the fiscal year with the granting of
radio pratique to certain passenger vessels at the ports of New York
and Boston. By this procedure certain classes of passenger vessels
which meet the requirements laid down by the Surgeon General are
allowed to pass quarantine, a modified inspection being made at dock.
Up to the close of the year, 84 vessels of 19 lines made 393 such entries
into the port of New York.
As has been the case for many years past, no quarantinable disease
was imported into the United States or its possessions during the
fiscal year. In the work of preventing such importation, the quarantine
officers of the Service inspected 16,959.vessels, carrying 846,827 passengers and 1,230,452 seamen, and fumigated 1,114 vessels upon
arrival at United States ports. Of 8,123 rats recovered after fumigation, 4,867 were examined for plague infection. The great reduction
in the number of rats found on vessels in recent years reflects improved
deratization procedures developed by the Public Health Service.
"208
REPORT OF THE SECRETARY OF THE TREASURY
A total of 4,094 airplanes, carrying 45,936 passengers, arrived in
the United States during the fiscal year. Since medical officers of the
Service are not available at all airports of entry, inspections for quarantine and immigration purposes were made of only 2,499 of these
,airplanes, carrying 38,926 passengers, 5,841 of whom were aliens.
. By reason of increased aircraft travel from South American countries having reservoirs of yellow fever, quarantine supervision of such
aircraft arriving at southern airports in the United States was amplified
both as to passenger inspection and airplane fumigation.
A new system of supervision of smaller quarantine stations by larger
stations, with entire coastal supervision vested in the largest station
existing on that coast, established a unifonn and highly effective
method of handling maritime shipping.
Medical officers at the various ports of entry in the United States
examined 976,055 alien passengers and 806,225 alien seamen during the
year. Of these numbers, 18,994 passengers and 1,384 seamen were
certified to the proper immigration officials, in accordance with the
act of Congress approved February 5, 1917, as being afflicted with
some mental or physical defect or disease.
A total of 52,913 applicants for immigration visas was examined b y
medical officers of the Public Health Service stationed in American
consulates in foreign countries, 33,723 in American consulates in the
Eastern Hemisphere, and 19,190 in American consulates in the
Western Hemisphere. Of those examined, 830 in the Eastern Hemisphere and 110 in the Western Hemisphere were reported by the
medical officers to the American consuls as being afflicted with one or
more of the defects or diseases requiring exclusion, and 6,845 of those
examined in the Eastern Hemisphere and 2,838 of those examined in
the Western Hemisphere were reported as being afflicted with a
disease or condition which was likely to affect their ability to earn a
living. Only three of the aliens who had been given a preliminary
medical examination in American consulates in foreign countries, and
to whom visas had been issued, were certified upon arrival at a United
States port as being afflicted with a condition requiring deportation
National Institute of Health
For the purpose of more economical administration, and other
reasons, the directorship of the National Institute of Health was consohdated with the office of Chief of the Division of Scientific Research
on February 1, 1937. The following summarizes the important work
and achievements of the seven divisions of the Institute during the
fiscal year:
Division of Chemistry.—The major work of the Division of Chemistry
concerned problems of the deficiencies of nutrition and the improvement of diet; studies on dental fluorosis, including field investigations
of the fluoride content of natural waters and laboratory investigations
on the effect of fluoride on animals. Investigations were also carried
out on the chemistry of carbohydrates, including starch and sugars.
Division of Pharmacology.—Research on the chemical treatment of
several important infectious diseases in laboratory animals has yielded
important contributions to this rapidly expanding field. A new
drug, related to sulfanilamide, has been prepared and appears to
possess unusual medicinal properties. Many interesting new facts
have been added to our knowledge of cancer with reference to the
REPORT OF THE SECRETARY OF THE TREASURY
209
retardation of cancerous growths by certain diets, and the production
of cancer in animals by means of pure chemicals.
Division of Zoology.—Studies conducted by the Service indicate that
probably 15 percent of the population of the United States become
infested with tricliinae, and that even more, probably over 20 percent,,
become infested with pin worms. Improved diagnostic methods have
been developed for trichinosis, and a sound therapy has been worked
out for pin worm infestations.
Division of Infectious Diseases.—The virus of endemic typhus isolated from a field mouse in Alabama proves that the disease is present
in rural areas. The gross amount of spotted fever vaccine manufactured was 591 liters, the largest amount made in any year, resulting
in vaccine sufficient to immunize 80,000 persons. Sylvatic plague
continues to be found in ground squirrels in certain western areas.
The importance of efficient disinfection of airplanes is evident from
the inspection of 252 planes from South and Central American ports,
72 of which were found to contain living insects, including mosquitoes.
The results of the use of the picric acid-alum spray, evolved by the
Public Health Service, on approximately 2,000,000 persons indicated
a reduction of incidence tlirough its use, but not to the extent desired.
The practicability of the method of purifying and precipitating the
erythrogenic toxin of the scarlet fever streptococcus has been developed and tested on a group of over 10,000 persons, showing that
three doses will produce immunity in about 85 percent of susceptible
children.
Division of Biologies Control.—In addition to the inspection of biologic establishments and the routine testing of biological preparations
licensed under the act of July 1, 1902, immunological studies have
been carried out to test the validity of claims for products to be used
in the treatment of cancer and tuberculosis.
Division of Public Health Methods.—Studies of sewage purification
were continued with special reference to methods of oxidation.
The national health inventory project, begun in 1935 under an
allocation of funds provided in the Emergency Relief Appropriation
Act of 1935, received additional allocations amounting to $1,318,000
during the fiscal year. On the average 1,105 relief and 73 nonrelief
employees were engaged in this work during the year. The project
has proved to be of outstanding importance in the field of hygiene
and sanitation because of its magnitude, and the results with reference
to the prevalence of disabling illness, the relation between illness and
economic status, available medical care and hospital facilities, and
similar health factors will no doubt furnish basic information of
significant value to public health workers.
Division of Industrial Hygiene.—Studies of industrial hygiene covered such matters as selenium, dust menaces to workers, prevalence
and methods of control of diseases peculiar to workers in heavy metals,
occupational morbidity and mortality investigations, standards for
the protection of industrial workers and the development of State
industrial hygiene units.
Division of Pathology.—During the year 1,688 surgical specimens
were examined for the Public Health Service and other governmental
agencies. Experimental pathological studies have been made of the
pathologic anatomy and histology of various conditions under study in
other divisions of the Institute.
210
REPORT OF THE SECRETARY. OF THE TREASURY
Division of Venereal Diseases
The year 1937 marks a significant advance in the attack upon the
venereal diseases. An aroused public interest in the great prevalence
and serious consequences of syphilis and gonorrhea and the growing
eagerness for full information and free discussion of these subjects are
encouraging signs of progress in the control of these diseases. The
cooperation of the press and radio in lending their facihties for the
dissemination of clear and precise information on these topics has been
of inestimable value. This change of attitude on the part of the pubhc
is reflected in the widespread approval and support of the venereal
disease control program by official and unofficial agencies and lay
groups throughout the Nation.
The major impetus to work in this field was given by the Conference
on Venereal Disease Control Work, sponsored by the Public Health
Service and held in Washington, D. C , December 28-30, 1936.
This conference was attended by more than 1,000 health officers,
physicians, social workers, and other interested persons from all parts
of the country. State and local health departments have almost
uniformly increased their budgets for the control of these diseases and,
under the guidance of collaborating Service personnel, have put into
actual operation projects to survey their local problems and attack
them from the most advantageous angle. Legislation for the control
of the venereal diseases has been introduced in several States, laws
have been passed in 2 States to include forms of premaritahexaminations, and 14 States have similar legislation under consideration.
Funds available under the Social Security Act have been employed in
widening the facilities necessary for adequate control, including the
training of personnel, the establishment or enlargement of laboratories,
and the enabling of States to purchase drugs necessary in the treatment
of these diseases and to distribute them free to the doctors within their
boundaries.
The increase in funds provided through the enactment of the Social
Security Act and the public desire for the control of syphilis and gonorrhea have resulted in broadening the scope of activities of the Division
of Venereal Diseases. The requests from State health departments
fbr cooperative advice and assistance in organizing and developing
venereal disease control programs exceeded the available supply of
trained personnel. The many requests for the presentation of
scientific papers before State medical societies and of addresses before
groups of interested lay organizations on the topics of syphilis and
gonorrhea were filled with difficulty. The statistical*studies made in
conjunction with the Cooperative Clinical Group have been extended.
The utilization of new building space and an increase in personnel
have made possible an expansion in the scientific studies carried on at
the laboratory in Stapleton, N. Y. Basic principles for the control
of these diseases which can be adapted to meet local conditions have
been formulated; and if the necessary funds are provided, the next
decade or two should witness a material decrease in the prevalence and
incidence of syphihs. and gonorrhea.
Division of Mental Hygiene
Studies of the nature and treatment of drug addiction were continued at the United States Public Health Service hospital, Lexington,
Ky. In correlation with these studies, experiments were conducted
REPORT OF THE SECRETARY OF THE TREASURY
211
to determine the addiction liabihty of certain specific derivatives of
opium. Perparin was found not to possess addiction liability, but to
be without apparent value in the treatment of abstinence symptoms in
opium addiction. Other research at this hospital included an intensive investigation of the physical, chemical, psychological, and psychiatric changes resulting from doses of morphine, varying in size and
purpose of administration.
In an effort to evaluate more accm-ately the abstinence phenomena
seen in chronic opium poisoning, a system of recording observations
has been inaugurated, which makes possible a more accurate determination of the merit of any form of treatment. Also a special study
deahng with the kidney excretion of recoverable morphine was
undertaken during the year, and preliminary work in the field of
electro-encephalography in relation to drug addiction was begun for
the purpose of securing knowledge regarding relapses in addiction.
Certain selected cases of addiction were studied by suggestion through
the medium of hypnotism.
In studies on tbe addiction liability of certain derivatives of opium
as possible substitutes for morphine, the Pubhc Health Service is
attempting to determine the addiction liability of new chemical
compounds derived from opium whose chemical structure and physiological action on lower animals have already been determined.
On October 27, 1936, letters patent for ethers of morphine and the
dihydrogenated derivatives and methods of production were granted
by the Commissioner of Patents to Dr. Lyndon F. Small, consultant
in alkaloid chemistry. United States Public Health Service. This
patent was presented to the Secretary of the Treasury on December
1, 1936, as ex-officio custodian of United States property, in order
that he have general supervision over experimental studies with these
substances. Application has also been made by Dr. Small for a patent
on ethers of morphine and dihydromorphine and their respective
N-oxides.
Clinicar studies of the analgesic and other properties of morphine
a;nd related substances were continued in connection with the rehef of
pain among cancer patients and of cough among tuberculous patients.
The facilities at the United States Pubhc Health Service hospital,
Lexington, Ky., were fully developed during the year, so that by
January 1937 it was in a position to care for the normal capacity of
1,000 patients. In January, at the request of the Governor of Kentucky, 468 State prisoners were admitted as an emergency measure,
the State reformatory being compelled to evacuate all prisoners
because of the Ohio River flood situation.
A wider use was made of the probation feature of the law authorizing
the hospital for narcotic addicts, and a greater number of sentenced
patients was received directly from the courts in lieu of transfer from
other institutions. There were 182 voluntary patients received during
the year, and 113 left against medical advice. A total of 1,507 patients
was admitted to the hospital during the course of the fiscal year and
1,292 discharged.
Contract was awarded for the construction of the initial group of
buildings for the second United States Pubhc Health Service hospital
for narcotic addicts at Fort Worth, Tex., on July 27, 1936. I t is
anticipated that funds will be available for the completion of this
institution and that it will be ready for operation by the Public Health
Service late in the calendar year 1938.
212
REPORT OF THE SECRETARY OF THE TREASURY
The Public Health Service continued to supervise and furnish the
medical and psychiatric services, through 18 medical units, for the Federal penal and correctional system. Psychiatric diagnostic service
for United States district courts, initiated a t Boston, Mass., in May
1936, was extended during the fiscal year to include district courts
in New York City, Philadelphia, Pa., Baltimore, Md., Denver, Colo.,
Detroit, Mich., and Kansas City,^ Mo. Preliminary arrangements
have been completed for the extension of this service during the next
fiscal year to the district courts located in Pittsburgh, Pa., Atlanta,
Ga., and Minneapolis and St. Paul, Minn., making a total of 11 metropolitan centers where the Federal judges may have the benefit of a
psychiatric opinion to assist them in determining the mental state of
the defendant where they consider it an important element in the
problem of disposition of the case.
A cooperative committee of representatives of national medical
associations and the Public Health Service was organized to study the
public mental hospitals in the United States and Canada. I t has for
its objective the furnishing of advice to local jurisdictions to enable
them to provide adequately for the care of the mentally ill and to
improve the facilities for instruction in the psychiatric field. Interest
is being focused on the problem of what is being done for newly
admitted cases during the first year of residence, the most crucial
period and the most hopeful time for recovery.
Special studies were inaugurated to determine where, when, and
under what conditions mental disorders arise in a given community,
to determine whether there is an approach to this problem from the
public health standpoint.
Division of Marine Hospitals and Relief
During the year the marine hospitals and other rehef stations
treated a daily average of 5,592 in-patients and 3,798 out-patients.
There were 59,722 patients who received hospital treatment compared
with 54,208 last year. Hospital and out-patient care was furnished to
355,810 beneficiaries. The number of hospital days was 2,041,114,
or 136,773 more than last year.
In spite of increased prices for supplies and foods, the per diem cost
was only $3.38. This low per diem cost was accomplished by adopting
the strictest economy, keeping personnel at the lowest practicable
number, and by foregoing many important replacements and repair of
equipment.
Customary medical services and hospital care were furnished to
various agencies of the Government. The Public Health Service also
acted as one of the Government agencies for making physical examinations of applicants for civil service positions. The National Leprosarium at Carville, La., cared for approximately 350 lepers as a constant resident population during the year. Plans for modernizing the
institution are under way. Operation of the marine hospital at Fort
Stanton, N . Mex., as a specialized institution for tuberculous patients
was continued. Emergency medical relief was furnished to employees
of other Government departments in Washington, and supervision of
25 medical relief units in the Treasury Department and other agencies
was maintained.
213
REPORT OF THE SECRETARY OF THE TREASURY
Division of Personnel and Accounts
Personnel.—On June 30, 1937, the regular commissioned corps of
the Public Health Service consisted of 398 commissioned officers and
84 reserve officers on active duty. Other personnel of the Service
totaled 6,958, not including 4,599 collaborating and assistant collaborating epidemiologists who served at nominal compensation, and who
were for the most part oificers or employees of State and local health
organizations, and 683 emergency employees appointed under the
Works Progress Administration.
Financial statement.—Following is a statement of funds made available to the Public Health Service and the expenditures therefrom for
the fiscal year 1937:
Statement of funds made available to the Public Health Service and expenditures for
the fiscal year 1937
Expenditures
Source of funds
Amount
Repayavailments and Total
able
transfers
Direct
Transfer
to other
appropriations
APPROPRIATION
$316,542
1,947, 712
340,200
1,000,000
25,450
64,000
6, 974,000
361,450
260,000
36,535
45.000
$316,268
1,941,784
323,580
978,366
25,083
62,606
6,905,889
349, 354
249.747
33,537
43,986
80, 000
663, 220
1,000
8,881,859
78,440
640,428
980
7,765, 203
$15,000
1, 324,039
1,124,585
144,000
2,169, 932 22, 321, 007 20,839,836
159,000
$308,410
$8,132
Salaries, Office of Surgeon General
1,775,810
171,902
Pay, etc., commissioned officers
.
Pay. of acting assistant surgeons
340, 200
1,000,000
Pay of other employees _ _
Freight, transportation, etc
25,450
Maintenance, National Institute of Health
64,000
Pay of personnel and maintenance of hospitals- 5,870,000 1,104,000
361,450
Quarantine servicePreventing the spread of epidemic diseases. _ .
260,000
36,535
Interstate quarantine service
45,000
Control of biologic products
Expenses:
80,000
Division of Venereal Diseases
Division of Mental Hygiene...
663, 220
Educationarex'hibits1,000
Grants to States, Social Security Act, sec. 601.. 8,000,000
881,859
Diseases and sanitation investigations, Social
Security Act, sec. 603
1,320,000
4,039
Total
20,151,075
OTHER AVAILABLE FUNDS
Medical and hospital service, penal institutions
(Department of Justice)
Mosquito control (District of Columbia).
Texas Centennial Exposition
_
Greater Texas and Pan American Exposition..
Emergency Relief, Treasury, Public Health
Service, 1936-37 (health survey). . .
Emergency Relief, Treasury, Public Health
Service (health and sanitation activities, act
Feb. 24, 1937), for expenditures in flood
stricken areas
._
500,000
4,100
19,675
2 4,000
500,000
4,100
19,675
2 4, 000
495,443
2,705
7,765
700
1,318,000
1,318,000
Total
3 1,072,677
2,908,452
3 1,072,677
2,908,452
345
2, 964,
749,034
Grand total.
23,059,527
25,198,230
23,662,209
2,138,703
1, 278,076
1 $2,000 of this amount returned to master account (Texas Centennial Exposition, Jan. 22, 1937).
2 $3,000 of this amount available for expenditures in 1938.
3 $108,332 of this amount rescinded in July 1937 by President's letter.
159,000
214
REPORT OF THE SECRETARY OF THE TREASURY
The status of the working capital fund of the Public Health Service
hospitals for treatment of drug addiction is as follows:
Balance, Jiily 1, 1936..
Earnings
Transferred from expenses. Division of Mental Hj^giene
Total available
Expenditures
Balance, June 30, 1937...
.-.
:
.,
.-__... $13, 295
:
63,306
15,000
:.
.^
91,601
57,308
34, 293
.
The revenues derived from operations of the Public Health Service
during the year and covered into the Treasury as miscellaneous
receipts were as follows:
Source
General fund receipts:
Quarantine charges •-Hospital charges and expenses
•_
Sale of subsistence
-•
Sale of occupational therapy products
Sale of obsolete, condemned, and unserviceable equipment
Rents
Reimbursement for Government property lost or damaged
Commissions on telephone pay stations installed in Service buildings..
Sale of refuse, garbage, and other byproducts.-..
. Sale of livestock and livestock products
^
Other revenues
Total
Trust fund receipts:
Sale of effects of deceased patients..
Inmates' fund
$235,248.00
37,136.33
13,839.52
592. 70
]6,912.59
5,663. 25
247.60
2,003.95
1, 550.63
417. 29
2,655. 73
:.
316, 267.59
1,844.15
63,022.80
Grand total
381,134. 54
DIVISION OF RESEARCH AND STATISTICS
;
The Division of Eesearch and Statistics in the Office of the Secretary provides, for the use of the Secretary of the Treasury and other
Treasury officials, information and economic and financial^ analyses
relating to Treasury operations and policies in the fields of taxation.
Federal financing, and monetary and actuarial problems. Treasury
publications relating to these fields are reviewed, replies to correspondence are prepared, the annual report of the Secretary of the Treasury
is edited, and other services of a similar nature are performed for the
Office of the Secretary. The Director of Research and Statistics is
responsible for the production, analysis, and publication of statistics, and
the conduct of economic research in all branches of the Department.
Taxation
Estimates of Federal receipts from internal revenue taxes and from
customs duties are prepared for the Bureau of the Budget for use in
all regular and interim Budget reports. In connection with proposed
revenue legislation, estimates are prepared of probable revenue under
various rate schedules.
Economic analyses of the Federal tax structure are made covering
both immediate and contemplated legislative needs, and dealing with
the effectiveness and equitableness of the Federal tax system as it
exists and with proposed changes in the system. Studies are undertaken pertaining to the extent and character of conflicting and overlapping taxation by Federal, State, and local Governments, and com-
REPORT OF THE SECRETARY OF THE TREASURY
215
parative studies are made of selected taxes in foreign countries and of
certain foreign tax systems as a whole.
Federal financing
The Division carries on research and security analysis in connection
with problems relating to Federal financing. Current and prospective
conditions in the money and capital markets are studied in relation to
both longer-term programs of Federal financing and to the types of
securities, the coupon rates, and maturities to be employed in particular financing operations. The investment portfolios of Government
trust funds and of governmental corporations and credit agencies are
analyzed for the purpose of recommending changes which may appear
advantageous. Studies are made of existing laws and of legislative
proposals in their relation to Treasury financing and Federal fiscal
pohcies.
Monetary problems
For the use of the Secretary in connection with stabilization fund
operations and the acts pertaining to the purchase of gold and silver,
analyses are made of international movements of gold and silver, the
flow of capital funds into and out of the United States, the position of
the dollar in relation to foreign currencies, the monetary policies of
foreign countries, exchange and trade restrictions adopted abroad, and
similar problems affecting Treasury policy and operations. Under
Executive order of January 15, 1934, and Treasury Regulations of
November 12, 1934, detailed reports covering security and foreign
exchange transactions and changes in bank balances between the
United States and foreign countries are made weekly by banks, bankers, brokers, and dealers throughout the country who are engaged in
such operations. These reports provide data from which are prepared
current analyses and interpretations of international capital movements, and at quarterly intervals the data are published.
Actuarial analysis
Analyses and reports are made on actuarial matters pertaining to
Treasury operations, including reports on the actuarial status of the
old-age reserve account estabhshed under the Social Security Act and
of other pension and trust funds for which the Treasury is responsible.
In connection with: retirement legislation, estimates are made of
probable^ cost of existing and proposed plans. The Government
Actuary is a member of the Board of Actuaries, established under the
Giv^il Service, Retirement Act, and serves in a consulting capacity on
actuarial matters for governmental agencies outside the Treasury
Department.
DIVISION OF SAVINGS BONDS
The Division of Savings Bonds is responsible for the promotion of
the sale of United States savings bonds. Through magazine advertising, display posters, circulars, and other literature, an extensive
program is conducted, chiefly to interest small, individual investors.
216
REPORT OF THE SECRETARY OF THE TREASURY
There has been a steady increase from month to month in the sale
of United States savings bonds. Taking into account all redemptions,
during the fiscal year 1937 more than 2,000,000 bonds, with a maturity
value of approximately $629,000,000, were sold to about 680,000
people.
Sales of savings bonds during the fiscal year 1937, on the basis of
the final Treasury audit of sales by the Post Office Department and
Federal Reserve banks, are shown by months and denominations in
the table on page 15.
Of the number of savings bonds sold, approximately 85 percent is
held by individuals and the remainder by banks, associations, and
corporations. The larger cities have proved the more productive
areas for sales. Cities with a population of 100,000 and over bought
44.74 percent of the bonds, while towns of 10,000 and less bought
approximately 33K percent. The $100 denomination is the most
popular and represents 29.96 percent of the bonds sold.
SECRET SERVICE DIVISION
During the year 2,996 persons were arrested by agents of the
Service, or by their direction, on charges involving counterfeiting of
the obligations and coins of the United States, forgery, and miscellaneous offenses against the statutes relating to the Treasury Department. Of this number, 743 were note counterfeiters and note passers,
21 were note raisers and passers of altered currency, 651 were coin
counterfeiters and coin passers, 1,348 were check forgers, 7 were apprehended for negotiating stolen or forged bonds, 38 for presenting
false claims against the Government, 26 for violating the Gold Reserve
Act, 17 for violating the Farm Loan Act, 6 for violating the Adjusted
Compensation Act, 17 for making and possessing counterfeit strip
stamps, 23 for making and negotiating counterfeit Government checks,
8 for making and possessing counterfeit postage stamps, 24 for conspiracy, and 67 for miscellaneous offenses.
Twelve new counterfeit note issues were discovered, all photomechanical productions and, for the most part, deceptive and warranting
distribution of descriptive warning circulars. In addition, 33 counterfeit notes of varying types of workmanship were detected in different
sections of the country; these notes, some hand-drawn, others photographic or transfer specimens of poor workmanship, were generally
crude and quickly suppressed.
During the year counterfeit notes having a representative value of
$659,368.86 were captured by or turned over to agents of the Service,
a decrease of $370,684.37 compared with 1936.'^ The total for 1937
includes altered currency aggregating $6,330, of which $3,635 was
made and passed in foreign countries, and fractional currency amounting to $194.86. Counterfeit coins in the amount of $72,087.11 were
turned over to the Service or confiscated by agents in connection
with raids and subsequent arrests, compared with. $121,786.61 in
1936. Counterfeit foreign notes and coins in the amount of $378.38
were also seized.
In connection with arrests and investigations, agents captured or
seized 124 metal plates, 100 film and glass negatives for printing
counterfeit obligations and securities, 94K steel dies, 39K metal molds,
394K plaster molds for counterfeiting coins, and a large quantity of
miscellaneous materials and counterfeiting paraphernaha.
REPORT OF T H E SECRETARY OF T H E TREASURY
217
Of the counterfeit notes captured during the year, $138,922 were
used in evidence against the makers and passers, and $1,080 in altered
notes were hkewise used in the prosecution of note raisers and passers
of altered currency. Counterfeit coins totaling $4,576 were also used
in evidence in cases of this character.
Of the cases brought to trial, 2,081 were convicted and sentenced^
89 were acquitted, 384 are awaiting the action of the courts, and
others were variously disposed of, some defendants being committed
to insane asylums and others delivered to the military or police
authorities.
Agents during the year conducted investigations in 6,340 check
cases, 107 bond cases, and 1 war savings stamp case. In check investigations, $11,566.51 was received in restitution and transmitted
to the Treasury Department.
There were referred to the Service for investigation 18,553 cases of
criminal character and 1,072 cases of noncriminal nature.
During the year the field activities of the Service were divided into15 supervisory districts in accordance with Treasury Department
Order No. 14, dated November 16, 1936. By Treasury Department
Order No. 15, dated April 30, 1937, jurisdiction over, and responsibihty for the activities of, the entire guard force of the Treasury
Department operating in Washington, D. C , were vested in the
Chief of the Secret Service Division, effective June 30, 1937.
TREASURER OF THE UNITED STATES
Pubhc moneys are received and disbursed through the accounts of
the Treasurer of the United States. Deposit accounts are carried
with designated Government depositaries and the Treasury at Washington. Credit accounts with disbursing officers of the Government
are maintained on the books of the Treasurer. Funds appropriated
by Congress for the use of the various departments and establishments of the Government are advanced to disbursing officers as
required through credits to their accounts with the Treasurer, and
disbursements are made by checks drawn by disbursing officers on
their accounts with the Treasurer.
1936
Receipts, exclusive of postal r e v e n u e s :
General a n d special accounts
T r u s t accounts, etc
•
.
. .
T o t a l expenditures (unrevised basis)
A d j u s t m e n t of unrevised e x p e n d i t u r e s
revised basis
T o t a l expenditures (revised basis)
Excess of expenditures over receipts
1 Excess of credits, deduct.
Increase ( + ) or
decrease ( - )
$4,114, 714, 278. 51 $5,307,155,051. 28 +$1,192. 440, 772. 77
427, 631, 640. 00
591, 363,839. 56
+163, 732,199 56
T o t a l receipts (revised basis) .
Expenditures:
General
R e c o v e r y a n d relief
R e v o l v i n g funds ( n e t ) . .
.__Transfers to t r u s t accounts, etc
D e b t retirements
. _ - - . .
T r u s t accounts, eco
1937
.
4, 542, 345,918. 51
5,898,518,890.84
3,399, 325, 513. 80
3. 341, 492, 416. 39
1 78,414, 754. 30
1,814,154,931. 72
403,240,150. 00
703, 658, 429. 26
4, 297,089,142. 24
3, 079, 266, 645. 06
1 243, 569,164. 51
858, 400, 724. 08
103,971, 200.00
75?, 468,840. 25
+897, 763, 628. 44
- 2 6 2 , 225, 77i. 33.
— 165,154,410.21
-94.5, 754, 207. 04
—299,268,950.00'
+ 4 9 , 810,410. 99-
9, 588,456, 686. 87
8,863, 627, 387. 72
-724,829,299.15-
-12,237,743.43
- 3 5 4 , 222. 44
+11,883,520.99'
9, 676, 218,943. 44
8, 863, 273,165. 28
-712,945, 778.16-
5,033,873,024. 93
2, 964, 754, 274. 44
-2,069,118.750. 49'
+ 1 , 356,172,972 33:
to
218
REPORT OF T H E SECRETARY OF T H E TREASURY
A comparison of receipts, exclusive of postal revenues, and expenditures of the Government for the fiscal years 1936 and 1937 is presented
in the preceding table. The receipts are on the basis of daily Treasury
statements (revised) and the expenditures on the basis of daily
Treasury statements (unrevised), with the total adjusted to a revised
basis. The figures throughout the remainder of the report of the
Treasurer (pp. 218 to 221, inclusive) are on the basis of daily Treasury
statements (revised). (For a description of bases used in the tables
in this report and of the accounts through which Treasury transactions are effected, see pp. 295 and 296.)
The pubhc debt obligations outstanding on June 30, 1936 and 1937,
were $33,545,384,622 and $36,427,091,021, respectively, representing
an increase during the year of $2,881,706,399. The receipts and
expenditures on account of the principal of the pubhc debt and the
increase or decrease in each class of obligation during the year were
as follows;
Class
Receipts
Public debt
increase ( + ) or
decrease (—)
Expenditures
T r e a s u r y bills
$3, 604, 543, OUO. 00 $3,666,199,000.00
Certificates of i n d e b t e d n e s s
2,533,700.00
Certificates of i n d e b t e d n e s s (adjusted service
certificate fund series)
54,900,000.00
144,100,000.00
Certificates of i n d e b t e d n e s s ( u n e m p l o y m e n t
596.439,000. 00
t r u s t fund series)—.
303,053,000.00
1,057, 329. 500.00 1,823,428,150.00
T r e a s u r y notes
.1
T r e a s u r y notes (old-a£ce reserve account series)....
267,100,000.00
T r e a s u r y notes (civil service r e t i r e m e n t fund
78,700,000.00
series)
44,000,000 00
T r e a s u r y notes (foreign service r e t i r e m e n t fund
8S1,000.00
series)
654,000.00
T r e a s u r y notes ( C a n a l Zone r e t i r e m e n t fund
634,000.00
179,000.00
T r e a s u r y notes (Alaska R a i l r o a d r e t i r e m e n t "fund
series^
- . - ----.-52,000.00
T r e a s u r y notes (Postal Savings S y s t e m s e r i e s ) . . .
70.000,000.00
T r e a s u r y notes (Federal D e p o s i t I n s u r a n c e Corporation series)
6.000,000. OJ
2, 768, 352,100. 00
Treasury bonds
532, 400.00
U n i t e d States savings b o n d s (including unclassi522, 231,311. 30
36, 327,912. 25
fied sales)-.
140, 689, 400. 00
Adjusted service b o n d s
463,274,850.00
Adjusted s e r v i c e . b o n d s — G o v e r n m e n t life insur500,167,956.40
ance fund series
11,855. 25
W a r savings securities
29,821.00
T r e a s u r y savings securities
14,850.450. 00
First Liberty bonds
Second L i b e r t y b o n d s
...
130, 200. 00
Tbird Liberty bonds
159,900. 00
Fourth Liberty bonds.
19, 459. 500. 00
42,0.50. 00
Victory notes
1,789, 200.00
Postal savings b o n d s
8,950. 00
Consols of 1930
1
36, 700. 00
P a n a m a Canal bonds
2.061.11
Other debt items
R e t i r e m e n t of national b a n k notes a n d Federal
114.402,169.00
Reserve b a n k notes
.-
-5,000,000. 00
+ 2 , 767, 819, 700.00
6,710, 202.868. 61
+ 2 , 8 8 1 , 706. 399.09
Total
9,591,909,267.70
-$61,656, 000. 00
- 2 . 533, 700.00
- 8 9 , 200,000. 00
+293, 386, 000.00
-766.096, 650. 00
+267.100. 000. 00
+34,700. 000.00
+227, 000.00
+455, 000.00
+52, 000. 00
-70,000.000.00
+485,903, 399.05
-322,685.450.00
+500. If7,956. 40
-11,855.25
-29,821.00
-14.850,450.00
-130,200.00
-159.900.00
- 1 9 , 4 5 9 , 500. 00
- 4 2 . 0 5 0 . 00
- 1 , 789, 200. 00
- 8 , 950.00
- 3 6 , 700.00
- 2 . 061.11
-114,402,169.00
Public debt retirements chargeable against ordinary receipts,
included in the above public debt expenditures, were as follows:
C u m u l a t i v e sinking fund
Received from foreign g o v e r n m e n t s u n d e r d e b t s e t t l e m e n t s
Forfeitures, gifts, etc
Total-
_
_
$103,733,650
142,000
13,500
103,889,150.
The number of pieces of public debt principal obligations examined,
verified, and redeemed during the year was 9,825,366, compared with
21,039,689 for the^previous year. Of the decrease, 9,884,311 pieces
REPORT OF THE SECRETARY OF T H E TREASURY
219
represented adjusted service bonds. Checks in payment of interest
on the registered obligations of the United States verified and paid
numbered' 964,572 and the matured interest coupons of Government
obligations examined, verified, and paid numbered'11,379,157.
The amount of interest paid on the public debt during the year
is classified as follows:
Class of interest payment
Amount
$714, 267,851. 26
108,491, 240. 41
13, 340, 560. 48
7, 744, 565. 50
7,176, 912. 50
18,974,349.15
Interest coupons paid
Registered interest checks paid
Accrued interest paid in cash on obligations at redemption
Discount on Treasury bills sold
Discount accrued on United States savings bonds
Interest paid on obligations, special series
Total
869,995, 479. 30
The gold holdings of the Treasury as of June 30, 1937, valued at $35
an ounce, were $12,318,271,164.59, an increase of $1,709,854,486.35
over the previous year. The details of these gold holdings are shown
in table 41, page 447 of this report. The increase in gold holdiags
was made up as follows: Net acquisitions by mints and assay offices on
account of imports, etc. (valued at $35 an ounce), $1,705,757,285.91;
received under the order of the Secretary of the Treasury of December 28, 1933 (valued at $20.67+ an ounce), $2,419,904.40; increment
resulting from reduction in the weight of the gold dollar, $1,677,296.04.
Paper currency of each class issued and redeemed during the year
and the amounts outstanding, including Treasury a.nd Federal
Reserve bank holdings, on June 30, 1936 and 1937, were as follows:
Outstanding
June 30, 1936
Class
Gold certificates
Silver certificates
United States notes
Treasury notes of 1890
Federal Reserve notes
Federal Reserve bank notes
National bank notes
.. . _
Issued
$2,916,840,079
1,139, 638,487 $1,383,816,000
346, 681, 016
249,968,000
1,177,848
4,296,309, 560
1,942, 675,000
53,300,010
372, 219, 665
16,430
•
Total
9,126,166,665
3, 576,475.430
Redeemed
Outstanding
June 30, 1937
$9,694,950
1, 212, 098,275
249,968,000
4,600
1,730, Oil, 640
14,828,378
99, 227,855
$2,907,145,129
1,311,356,212
346, 681,016
1,173, 248
4,508,972, 920
38, 471,632
273,008,240
3.315,833,698
9,386,808,397
The paper currency held by Treasury ofiices and Federal Reserve
banks on June 30, 1937, was as follows:
Held in
Treasury offices and by
Federal Reserve banks
and agents in
custody for
the Treasurer
Class
Gold certificates
Silver certificates
United States notes
Treasury notes of 1890
Federal Reserve notes
Federal Reserve bank notes
National bank notes _.
Total
. .
. . .
_
Held by Federal Reserve
banks
$3,566,580 $2,815,462, 500
227,229,194
6,055,604
62,386,333
2,835, 533
1,226
326,430, 605
13, 761,985
289,400
566, 205
1 1,310,801
2,835,930
28, 097,934
3,434, 633,962
^ Includes $843,785 held by the Comptroller of the Currency for destruction.
Total
$?, 819,029, 080
233, 284, 798
65, 221,865
1,226
340,192, 590
855, 605
4,146, 731
3,462,731,896
220
REPORT OF T H E SECRETARY OF T H E TREASURY
United States paper currency shipped during the year from the
Treasury in Washington to Treasury offices. Federal Reserve banks
and branches, and others amounted to $1,586,742,596, a decrease of
$2,620,863,592 from the previous year. The Treasurer's office directed
shipments of current silver and minor coins between the United States
Treasury, the United States mints, and the Federal Reserve banks and
branches for use in public disbursements, etc., as follows:
Shipments
Shipments
mints to
from Treasury from
Treasury
and
to Federal
Federal ReReserve banks serve
banks
and branches and branches
Kind
Silver:
standard dollars
Half dollars
Quarter dollars
Dimes
Minor:
Nickels
-. i
Cents
'
-
--
-.
-
-
Total
$155,000
.---
155,000
Shipments
between Federal Reserve
banks and
branches
$3, 660,900
9, 577,900
11,669,300
10,939,900
$1,774,997
1,770,000
7, 260, 510
4, 066,440
4,000
47,174,950
410,000
3,958, 997
Shipments and transfers of gold coin and bullion and of uncurrent
silver and minor coins to the mints from the Treasury and the Federal
Reserve banks and branches were authorized in the amounts of
$1,158,446.68 and $7,458,597.61, respectively.
The proceeds of currency counted into the Treasurer's cash by the
Currency Redemption Division amounted to $302,554,312.50 of
which $98,576,905 was in national bank notes, $14,573,252.50 in
Federal Reserve bank notes, $135,237,800 in Federal Reserve notes,
and $54,166,355 in United States currency.
Canceled Federal Reserve notes amounting to $1,504,311,900 were
received from Federal Reserve banks and branches for credit of Federal
Reserve Agents.
Public moneys on deposit in designated Government depositaries
on June 30, 1937, exclusive of items in transit on that date, amounted
to $792,451,263.02. Table 41, on page 447, shows the amounts in the
various depositaries on June 30 of the last 3 years.
Securities held in custody by the Treasurer on June 30, 1937,
amounted to $19,524,025,484, compared with $19,804,437,592 on
June 30, 1936. The following table shows the amounts of the securities held ia custody on June 30, 1936 and 1937, classified according to
the purpose for which held:
P u r p o s e for w h i c h held
. T o secure national b a n k n o t e circulation
T o secure deposits of p u b l i c m o n e y s in depositary b a n k s
T o secure postal savings funds
F o r special t r u s t accounts
^—
F o r District of C o l u m b i a teachers' r e t i r e m e n t fund
F o r longshoremen's a n d h a r b o r workers' fund
F o r District of C o l u m b i a w o r k m e n ' s compensation fund.
Total
-
J u n e 30, 1936
J u n e 30, 1937
$600,000
55, 618,025
206,117,048
19, 535,303,979
6, 653, 490
124,050
21,000
$600,000
46, 230, 200
137, 661, 393
19, 332, 316, 841
7,057,150
138,900
21,000
19, 804, 437, 592
19, 524,025,484
REPORT OF THE SECRETARY OF THE TREASURY
221
The checks issued by the Treasurer of the United States in payment>
of interest on the registered obhgations of governmental agencies and.
insular governments during the year numbered 65,981, and amoimted
to $14,369,370.70. Interest coupons of obhgations of governmental
agencies and insular governments paid numbered 7,304,309 and
amounted to $135,480,114.05.
Funds were advanced to United States disbursing officers by a c coimtable warrants issued in an aggregate amount of $8,160,388,793.25^
Warrants aggregating $7,807,246,041.59 were also issued covering
pubhc debt principal and interest payments by the Treasurer.
Treasurer's checks aggregating $14,118,966.60 were issued on settlement warrants in payment of claims settled by the ComptrollerGeneral.
Checks drawn on the Treasurer of the United States by Government disbursing officers and agencies paid during the year numbered.
138,262,190. Of this number 78,932,759 were for work relief payments and were paid by the Federal Reserve banks acting as agents,
for the Treasurer. The total number of checks paid during the fiscal
year 1936 was 128,315,503, or 9,946,687 less than the number paid
during the current fiscal year. The checks issued under authority of
the Adjusted Compensation Payment Act paid during the fiscal y e a r
numbered 3,725,768.
The aggregate amount of balances to the credit of disbursing
officers and agencies on June 30, 1937, was $1,549,054,184.10 in
5,982 accounts, compared with $2,003,119,811.08 in 5,781 accounts,
on June 30, 1936, a decrease of $454,065,626.98 in balances and an.
increase of 201 in the number of accounts.
Drafts in 62 different kinds of foreign currencies, aggregating 2,231
in number, were purchased during the year by the Treasurer of theUnited States for the Comptroller General and for other departments,
and bureaus of the Government at a cost of $142,386.44.
Personal checks, drafts, and postal and express money orders,,
aggregating 1,657,928 items and amounting to $234,387,379.33,.
were deposited by Government officers with the Treasurer of the^
United States for collection.
WAR FINANCE CORPORATION
(In liquidation)
Under authority of the act approved March 1, 1929, the liquidation
of the assets of the War Finance Corporation and the winding up of
its affairs were continued during the year.
Only $10,000 of the Corporation's original capital stock of $500,000,000 is outstanding, $499,990,000 of capital stock having been
retired at par. The Corporation has paid into the Treasury $64,821,271.70 on account of earnings.
The total amount of advances made by the Corporation, from its.
creation, not including such part of new applications as represented
proceeds used to retire other advances, aggregated $690,431,100, of
which $688,606,938 has been repaid. The total receipts during the
year amounted to $378.87, and the expenditures amounted to $165.27.
The remaining assets still carried on tbe books of the Corporation
as of June 30, 1937, amounted to $40,669.38, consisting of cash of
$34,333.10, furniture and fixtures of $1, and agricultural and livestock
loans (including expense advances of $372.22) of $6,335.28.
16109—38
16
EXHIBITS
223
THE PUBLIC DEBT
Public issues of Treasury bonds and Treasury notes
Exhibit 1
Offering of 2}i percent Treasury bonds of 1956-69
On September 8, 1936, Secretary of the Treasury Morgenthau invited subscriptions for 2 ^ percent Treasury bonds of 1956-59. The bonds were offered
for cash and in exchange for 1}^ percent Treasury notes of series D-1936, maturing
September 15, 1936. In the related press release it was stated that about
$155,000,000 of interest on the public debt and $514,066,000 of Treasury notes
of series D-1936 were payable on September 15, 1936.
[Department Circular No. 667. Public Debt]
TREASURY DEPARTMENT,
Washington, September 8, 1936.
OFFERING OF BONDS
The Secretary of the Treasury, pursuant to the authority of the Second Liberty
Bond Act, approved September 24, 1917, as amended, invites subscriptions, at
par and accrued interest, from the people of the United States for 2% percent
bonds of the United States, designated Treasury bonds of 1956-59. The amount
of the offering is $400,000,000, or thereabouts, with the right reserved to the
Secretary of the Treasury to increase the offering by an amount sufficient to
accept all subscriptions for which Treasury notes of series D-1936, maturing
I'September 15, 1936, are tendered in payment and accepted.
DESCRIPTION OF BONDS
The bonds, will be dated September 15, 1936, and will bear interest from that
date at the rate of 2 ^ percent per annum, payable semiannually on March 15
:and September 15 in each year until the principal amount becomes payable.
They will mature September 15, 1959, but may be redeemed at the option of
the United States on and after September 15, 1956, in whole or in part, at par
and accrued interest, on any interest day or days, on 4 months' notice of redemption given in such manner as the Secretary of the Treasury shall prescribe. In
•case of partial redemption the bonds to be redeemed will be determined by such
method as may be prescribed by the Secretary of the Treasury. From the date
of redemption designated in any such notice, interest on the bonds called for
redemption shall cease.
The bonds shall be exempt, both as to principal and interest, from all taxation
now or hereafter imposed by the United States, any State,, or any of the possessions
•of the United States, or by any local taxing authority, except (a) estate or inheritance taxes, or gift 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 authorized by the Second Liberty Bond Act, approved September 24, 1917, as amended,
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 bonds will be acceptable to secure deposits of public moneys, but will not
bear the circulation privilege and will not be entitled to any privilege of conversion.
Bearer bonds with interest coupons attached, and bonds registered as to
principal and interest, will be issued in denominations of $50, $100, $500, $1,000,
$5,000, $10,000, and $100,000. Provision will be made for the interchange of
bonds of different denominations and of coupon and registered bonds, and for
the transfer of registered bonds, under rules and regulations prescribed by the
Secretary of the Treasury.
225
226
REPORT OF THE SECRETARY OF THE TREASURY
The bonds will be subject to the,general regulations of the Treasury Department, now or hereafter prescribed, governing United States bonds.
SUBSCRIPTION AND ALLOTMENT
Subscriptions will be received at the Federal Reserve banks and branches and
at the Treasury Department, Washington. Banking institutions generally may
submit subscriptions for account of customers, but only the Federal Reserve
banks and the Treasury Department are authorized to act as official agencies.
Others than banking institutions will not be permitted to enter subscriptions
except for their own account. . Cash subscriptions from banks and trust companies
for their own account will be received without deposit but will be restricted in
each case to an amount not exceeding one-half of the combined capiital and surplus
of the subscribing bank or trust company. Cash subscriptions from all.others-,
must be accompanied, if for $5,000 or less, by payment in full; and, if for more than
$5,000, by payment of 10 percent of the amount of bonds applied for, but not lessthan $5,000. The Secretary of the Treasury reserves the right to close the books
as to any or all subscriptions or classes of subscriptions at any time without notice.
The Secretary of the Treasury reserves the right to reject any subscription, im
whole or in part, to allot less than the amount of bonds applied for, to make allotments in full upon applications for smaller amounts and to make reduced allotments upon, or to reject, applications for larger amounts, or to adopt any or all
of said methods or such other methods of allotment and classification of allotments
as shall be deemed by him to be in the public interest; and his action in any or all
of these respects shall be final. Subject to these reservations, cash subscriptions
for amounts up to and includijig $5,000 will be given preferred allotment; cash
subscriptions for amounts over $5,000 will be allotted on an equal percentage basis,
but not less than the maximum preferred allotment; and subscriptions in payment
of which Trea,sury notes of series D-1936 are tendered will be allotted^ in full.
Allotment notices will be sent out promptly upon allotment, and the basis of the
allotment will be publicly announced.
PAYMENT
Payment at par and accrued interest, if any, for bonds allotted on cash subscriptions must be made or completed on or before September 15, 1936, or on later
allotment. In every case where payment is not so completed, the payment with
application up to 10.percent of the amount of bonds applied for shall, upon
declaration made by the Secretary of the Treasury in his discretion, be forfeited
to the United States. Any qualified depositary will be permitted to make payment by credit for bonds allotted to it for itself and its customers up to any amourit
for which it shall be qualified in excess of existing deposits, when so notified by the
Federal Reserve bank of its district. Treasury notes of series D-1936, maturing
September 15, 1936, will be accepted at par in payment for any bonds subscribed
for and allotted, and such payment should be made when the subscription is
tendered.
GENERAL PROVISIONS
As fiscal agents of the United States, Federal Reserve banks are authorized
and requested to receive subscriptions, 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, to issue allotment notices, to receive payment for
bonds allotted, to make delivery of bonds on full-paid subscriptions allotted, anci
they may issue interim receipts pending delivery of the definitive bonds.
The Secretary of the Treasury may at any time, or from time to time, prescribe
supplemental or amendatory rules and regulations governing the offering, which
will be comniunicated promptly to the Federal Reserve banks.
HENRY MORGENTHAU,
Jr.,
Secretary of the Treasury,
Exhibit 2
Subscriptions and allotments, Treasury bonds of 1956-59 (from press releases, Septt,
9, 11, and 15, 1936 i)
On September 8, 1936, Secretary of the Treasury Morgenthau announced that
the subscription books for the offering of 2 ^ percent Treasury bonds of 1956-59
1 Revised Oct. 29, 1936.
227
REPOET OF THE SECRETARY OF THE TREASURY
closed at the close of business September 8, 1936, for the receipt of cash subscriptions. Reports received from the Federal Reserve banks showed that for the cash
offering, which was for $400,000,000, or thereabouts, subscriptions aggregated
$5,129,768,200, of which $469,977,250 was allotted. ; Subscriptions in amounts-up to and including $5,000 were allotted in full and those over $5,000 were allotted
7 percent, but not less than $5,000 on any one subscription,
The subscription books closed at the close of business September 10 for thereceipt of subscriptions in payment of which Treasury notes of series D-1936,,
maturing September 15, 1936, were tendered. These exchange subscriptions,
amounting to $511,870,800, were allotted in full.
Subscriptions and allotments were divided among the Federal Reserve districtsand the Treasury as follows:
Cash subscriptions
. received
Federal Reserve district
Boston
New York.....
Philadelphia. _
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
.
San FranciscoTreasury
Total
377,150
2,703, 496, 700
302, 554, 350
265, 343, 050
160, 703,950
122, 892,300
427, 885, 350
140, 801, 300
63, 016,800
94, 683,150
86, 422, 550
262, 285, 700
3,305,850
L
_. 16,129,768,200
Exchange
subscriptions
received and
allotted
Total subscriptions
received
Cash subscriptions
allotted
$507, 281, 650
$10,904, 500
307,082,700
3,010, 579,400
17,821,000
320, 375.350
11, 099, 500 . 276,442, 550
34,502, 500
195, 206,450
7,420,500
130, 312,800
75,877,100
603, 762,450
' 7,145,900
147, 947,200.
12,179, 000
75, 195,800
6, 662,800 • 101,345,950
89, 673,550
3,251,000
279, 460,000
17,174,300
4, 055,850
750,000
611,870,800
6,641,639,000
Total subscriptions
allotted
$40,119, 700
200,622, 050
26,867,700
28,109, 250
17,904,250
18,602, 500
•49,655,650
23, 233,.750
9,233,450
16, 514, 250
17, 258, 350
22, 757,850
298,500
$51, 024, 200607,604, 760'
44,688, 700
39,208,760
. 62, 406,760'
25,923,000
125,632, 760
30,379,650'
21,412,450
22.177,050
20, 509,350
39,932,160'
1, 048,600
469,977, 250
981,848,050-
Exhibit 3
Offering of S}i percent Treasury bonds of 1949-53 and l}i percent Treasury notes of
series C-1941
On December 7, 1936, Secretary of the Treasury Morgenthau invited cash and
exchange subscriptions for 2}^ percent Treasury bonds of 1949-53 and exchange
subscriptions for 1J4 percent Treasury notes of series C-1941. Holders of 2%
percent Treasury notes of series B-1936, maturing December 15, 1936, and of 3^
percent Treasury notes of series C-1937, maturing February 15, 1937, were offered
the privilege of exchanging such notes either for the Treasury bonds or the Treasury
notes. In the related press release it was stated that Treasury notes of seriesB-1936, maturing December 15, 1936, amounted to $357,921,200, and Treasury
notes of series C-1937, maturing February 15, 1937, amounted to $428,730,700.
On December 15,1936, there were payable $400,377,000 of Treasury bills and about$138,000,000 of interest on the public debt.
[Treasury bonds of 1949-63. Department Circular No. 672. Public Debt]
TREASURY
DEPARTMENT,
Washington, December 7, 1936.
OFFERING OF BONDS
/
The Secretary of the Treasury, pursuant to the authority of the Second Liberty
Bond Act, approved September 24, 1917, as amended, invites subscriptions, at
par and accrued interest, from the people of the United States for 2}^ percent bondsof the United States, designated Treasury bonds "of li949-53. The amount of the
offering is $700,000,000, or thereabouts, with the right reserved to the Secretary of
the Treasury to increase the offering by an amount sufficient to accept all subscriptions for which .Treasury notes of series B-1936, maturing December 15, 1936,.
or Treasury notes of series C-1937, maturing February 15, 1937, are tendered in^
payment and accepted.
DESCRIPTION OF BONDS
The bonds will be dated December 15, 1936, and will bear interest from t h a t
date at the rate of 2% percent per annum, payable semiannually on June 15 and.
'.228
REPORT OF THE SECRETARY OF THE TREASURY
December 15 in each year until the principal amount becomes payable. They
will mature December 15, 1953, but may be redeemed at the option of the United
States on and after December 15, 1949, in whole or in part, at par and accrued
interest, on any interest day or days, on 4 months' notice of redemption given in
vsuch manner as the Secretary of the Treasury shall prescribe. In case of partial
redemption the bonds to be redeemed will be determined by such method as may
"be prescribed by the Secretary of the Treasury. From the date of redemption
"designated in any such notice, interest on the bonds called for redemption shall
cease.^ . * * *
SUBSCRIPTION AND ALLOTMENT
Subscriptions will be received at the Federal Reserve banks and branches and at
the Treasury Department, Washington. Banking institutions generally may
^submit subscriptions for account of customers, but only the Federal Reserve
banks and the Treasury Department are authorized to act as official agencies.
Others than banking institutions will not be permitted to enter subscriptions
-except for their own account. Cash subscriptions from banks and trust companies
for their own account will be received without deposit but will be restricted in
•each case to an amount not exceeding one-half of the combined capital and surplus
-of the subscribing bank or trust companj''. Cash subscriptions from all others
must be accompanied by payment of 10 percent of the amount of bonds applied
for. The Secretary of the Treasury reserves the right to close the books as to
-any or all subscriptions or classes of subscriptions at any time without notice.
The,Secretary of the Treasury reserves the right to reject any subscription, in
whole or in part, to allot less than the amount of bonds applied for, to make
•allotments in full upon applications for smaller amounts and to make reduced
-allotments upon, or to reject, applications for larger amounts, or to adopt any or
-•all of said methods or such other methods of allotment and classification of allotments as shall be deemed by him to be in the public interest; and his action
in any or all of these respects shall be final. Subject to these reservations,
^subscriptions in payment of which Treasury notes of series B-1936 or Treasury
notes of series C-1937 are tendered will be allotted in full. Allotment notices
will be sent out promptly upon allotment, and the basis of the allotnient will be
"publicly announced.
PAYMENT
Payment at par and accrued interest, if any, for bonds allotted on cash subascriptions must be made or completed on or before December 15, 1936, or on
later allotment. In every case where payment is not so completed, the payment
with application up to 10 percent of the amount of bonds applied for shall, upon
'declaration made by the Secretary of the Treasury in his discretion, be forfeited
to the United States.. Any qualified depositary will be permitted to make
payment by credit for bonds allotted to it for itself and its customers up to any
^amount for which it shall be qualified in excess of existing deposits, when so
notified by the Federal Reserve bank of its district. Treasury notes of series
B-1936, maturing December 15, 1936, will be accepted at par in payment for any
bonds subscribed for and allotted. Treasury notes of series C-1937, maturing
February 15,1937, with coupon dated February 15, 1937, attached, will be accepted
.-at par in payment for any bonds subscribed for and allotted, and accrued interest on
the maturing notes from August 15, 1936, to December 15, 1936 ($9.94565 per
'$1,000), will be paid following acceptance, of the notes. Payment through
surrender of Treasury notes of series B-1936 or of series C-1937 should be made
when the subscription is tendered.
GENERAL PROVISIONS
As fiscal agents of the United States, Federal Reserve banks are authorized
::and requested to receive subscriptions. * * *
HENRY'MORGENTHAU,
Jr.,
Secretary of the Treasury.
I Omitted portions similar to corresponding sections of Department Circular No. 667, p. 225.
REPORT OF THE SECRETARY OF THE TREASURY
22&
[Treasury notes., series C-1941. Department Circular No. 573. Public Debt]
TREASURY
DEPARTMENT,
Washington, December 7, 1936.
OFFERING O F NOTES
The Secretary of the Treasury, pursuant to the authority of the Second Liberty
Bond Act, approved September 24, 1917, as amended, invites subscriptions, at par,
from the people of the United States for 1}^ percent notes of the United States,,
designated Treasury notes of series C-1941, in payment of which only Treasury
notes of series B-1936, maturing December 15, 1936, or Treasury notes of series-C-1937, maturing February 15, 1937, may be tendered. The amount of the
offering under this circular will be limited to the amount of Treasury notes of
series B-1936 and of series C-1937 tendered and accepted.
DESCRIPTION OF NOTES
The notes will be dated December 15, 1936, and will bear interest from that
date at the rate of 1J4 percent per annum, payable semiannually on June 15 and
December 15 in each year. They will mature December 15, 1941, and will notbe subject to call for redemption prior to maturity.
The notes shall be exempt, both as to principal and interest, from all taxation
(except estate or inheritance taxes, or gift taxes) now or hereafter imposed by theUnited States, any State, or any of the possessions of the United States, or by any
local taxing authority.
The notes will be accepted at par 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 notes.
The notes will be acceptable to secure deposits of public moneys, but will notbear the circulation privilege.
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 will not be issued
in registered form.
SUBSCRIPTION AND ALLOTMENT
Subscriptions will be received at the Federal Reserve banks and branches and.
at the Treasury Department, Washington. Banking institutions generally may
submit subscriptions for account of customers, but only the Federal Reservebanks and the Treasury Department are authorized to act as official agencies.
The Secretary of the Treasury reserves the right to close the books as to any or alF
subscriptions or classes of subscriptions at any time without notice.
The Secretary of the Treasury reserves the right to reject any subscription, im
whole or in part, to allot less than the amount of notes applied for, to make allotments in full upon applications for'Smaller-amounts and to make reduced allotments upon, or to reject, applications for larger amounts, or to adopt any or all of
said methods or such other methods of allotment and classification of allotmentsas shall be deemed by him to be in the public interest; and his action in any or alll
of these respects shall be final. Subject to these reservations, all subscriptionswill be allotted in full. Allotment notices will be sent out promptly upon,
allotment.
PAYMENT
Payment at par for notes allotted hereunder must be made or completed on or
before December 15, 1936, or on later allotment, and may be made only in Treasury notes of series B-1936, maturing December 15, 1936, or in Treasury notes of
series C-1937, maturing February 15, 1937, which will be accepted at par, and
should accompany the subscription. In the case of Treasury notes of seriesC-1937 tendered in payment, coupons dated February 15, 1937, must be attached
to the notes when surrendered, and accrued interest from August 15, 1936, toDecember 15, 1936, ($9.94565 per $1,000), will be paid following acceptance of
the notes.
GENERAL PROVISIONS
As fiscal agents of the United States, Federal Reserve banks are authorized and
requested to receive subscriptions, to make allotments on the basis and up to theamounts indicated by the Secretary of the Treasury to the Federal Reserve banks:
of the respective districts, to issue allotment notices, to,receive,payment for notes>
230
REPORT OF T H E SECRETARY OE T H E TREASURY
allotted, to make delivery of notes on full-paid subscriptions allotted, and" they
may issue interim receipts pending delivery of the definitive notes.
The Secretary of the Treasury may at any time, or from time to time, prescribe
•supplemental or amendatory rules and regulations goyerning the offering, which
will be communicated promptly to the Federal Reserve banks.
HENRY MORGENTHAU,
Jr.,
Secretary of the Treasury.
Exhibit 4
Subscriptions and allotments. Treasury bonds of 1949-53 and Treasury notes of
series C-1941 {from press releases, Dec. 11 and 16, 1936^)
On December 11, 1936, Secretary of the Treasury Morgenthau announced the
..subscription figures and the basis of allotment for the cash offering of 2}^ percent
Treasury bonds of 1949-53. Reports received from the Federal Reserve banks
-showed that cash subscriptions for the bonds, the offering of which was for
$700,000,000, or thereabouts, aggregated $4,951,653,000, of which $751,435,750
was allotted. Subscriptions in amounts up to and including $1,000 were allotted
in full and those in amounts over $1,000 were allotted 15 percent, but not less than
$1,000 on any one subscription.
The exchange subscriptions were allotted in full for the Treasury bonds and for
'Treasury notes of series C-1941, in payment of which Treasury notes, series
B-1936, maturing December 15, 1936, and series C-1937, maturing February 15,
1937, were tendered. For the offering of bonds, exchange subscriptions amounted
to $551,222,700, of which $255,206,200 was exchanged for the December notes and
$296,016,500 for the February notes. For the offering of Treasury notes, exchange
^subscriptions amounted to $204,425,400, of which $93,'960,200 was exchanged
•for the December notes and $110,465,200 for the February notes.
Subscriptions and allotments for the bonds and notes were divided among the
Federal Reserve districts and the Treasury as follows:
Treasury bonds of 1949-53
Federal Reserve district
Cash subscriptions
received
Exchange subscriptions
received and allotted
Notes,
series B 1936
Boston
_
$447,164,800 $6,164,600
New York-.
2,421,950,900 142,784,000
Philadelphia
305, 678,000 1,743,800
"Cleveland
310,184,200 3,731,700
Richmond
151. 279,100 25,989, 600
141,498, 250 1,381,900
Atlanta
464, 560, 250 50, 328,900
Chicago
r.
136, 293, 650 8, 561, 600
;.St. Louis
:-Minneapolis
65,113,150
1, 246, 200
Kansas City
99, 473, 300 3,669,300
Dallas
88, 340, 250 1, 522,100
•San Francisco . .
314,084,800 4,311, 600
'Treasury
_-___.
6,032, 350 3, 770,900
Total
Notes,
series C1937
Total subscriptions
received
Cash subscriptions
allotted
$6,069,800 $459, 399, 200 $67, 425,350
187,837,700 2, 752, 572, 600 363,988, 700
4,397,400
311,819,200 46,880,150
4,313,900
318,229,800 47, 781, 650
6,014, 600 183, 283,200 23, 313, 450
3,131, 500 146, Oil, 650 '21,869,850
40, 514, 600 .665,403,750 71,496,400
3,190,400
148,045, 650 20, 213, 600
2, 776, 700
69,136,050 10,157,050
9, 505,000 112, 647, 600 16,900, 700
3, 686, 700
93, 549,050 13,952, 250
18,329, 300 336, 725, 700 47,490, 600
966,000
16,052, 250
6, 249,000
4,961, 653, 000 255, 206,200 296,016, 500 5, 502, 875, 700 751,435,750
1 Revised Jan. 8,1937.
Total subscriptions
allotted
$79, 659,750
694,610,400
53,021, 350
55, 827,250
55, 317, 550
26,383, 250
162,339,900
31,965, 600
14,179, 956
29, 075,000
19,161,050
70,131, 500
10,986,900
1,302,658,450
231
KEPOET OF THE SECRETARY OF THE TREASURY
Treasury notes of series C-1941
Exchange subscriptions received and allotted
Federal Reserve district
Boston
New York
Philadelphia
'Cleveland
Richmond
Atlanta
'Chicago
St. Louis
-Minneapolis
"Kansas City •_
Dallas
'San Francisco
Treasury
Total
Total subscriptions received and
Notes, series Notes, series
allotted
B--1936
C-1937
__--_
-
--
.-.
.
.
--- - .
_. .
--
-
-
.
—
$2,001,900
76,136,600
1,934,600
1, 435,100
1,803,600
286.700
3, 432, 400
2, 343, 500
2, 318,400
690,900
109, 700
1, 332,400
135,400
$4,828,800
79,047,800
3, 042,000
9, 799, 300
1, 542,100
153, 300
3, 277, 200
645,000
4, 572, 900
949,100
156, 700
2, 379, 000
72,000
$6,830,700
155,183, 400
4,976 600
11, 234,400
3, 346, 700
440.000
6, 709, 600
2,988, 500
6,891,300
1, 640,000
266,400
3, 711,400
207,400
93,960, 200
110, 465, 200
204,425,400
Exhibits
Offering of 2% percent Treasury bonds of 1949-5S (additional)
On March 8, 1937, Secretary of the Treasury Morgenthau offered an additional
issue of 2)4 percent Treasury bonds of 1949-53 in exchange for 3 percent Treasury
notes of series B-1937, maturing April 15, 1937. In the related press release it was
stated that $300,000,000 of special Treasury bills, which matured immediately
after March 15, and about $165,000,000 of interest on the public debt, which became due on March 15, would be paid from quarterly tax receipts.
[Department Circular No. 674. Public Debt]
TREASURY DEPARTMENT,
Washington, March 8, 1937.
OFFERING
OF BONDS
^
The Secretary of the Treasury, pursuant to the authority of the Second Liberty
Bond Act, approved September 24, 1917, as amended, invites subscriptions, at
par and accrued interest from December 15, 1936, from the people of the United
iStates for 2}^ percent bonds of the United States, designated Treasury bonds of
1949-53, in payment of which only Treasury notes of series B-1937, maturing
April 15, 1937, may be tendered. The amount of the offering under this circular
will be limited to the amount of Treasury notes of series B-1937 tendered and
accepted.
DESCRIPTION
OF
BONDS
The bonds now offered will be an addition to and will form a part of the series
of 2J^ percent Treasury bonds of 1949-53 issued pursuant to Department Circular
No. 572, dated December 7, 1936, will be freely interchangeable therewith, are
identical in all respects therewith, and are described in the following quotation from
Department Circular No. 572: [Description omitted here, see p. 227.]
SUBSCRIPTION
AND
ALLOTMENT
Subscriptions will be received at the Federal Reserve banks and branches
and at the Treasury Department, Washington. Banking institutions generally
may submit subscriptions for account of customers, but only the Federal Reserve
banks and the Treasury Department are authorized to act as official agencies.
The Secretary of the Treasury reserves the right to close the books as to any or all
subscriptions or classes of subscriptions at any time without notice.
The Secretary,of the Treasury reserves the right to reject any subscription, in
whole or in part, to allot less than the amount of bonds applied for, to make
232
KEPORT OF THE SECiElETARY OF THE TREASURY
allotments in full upon applications for smaller amounts and to make reduced
allotments upon, or to reject, applications for larger amounts, or to adopt any or
all of said methods or such other methods of allotment and classification of allotments as shall be deemed by him to be in the public interest; and his action in any
or all of these respects shall be final. Subject to these reservations, all subscriptions will be allotted in full. Allotment notices will be sent out promptly upon
allotment.
PAYMENT
Payment at par and accrued interest for bonds allotted must be made or completed on or before March 15, 1937, or on later allotment, and may be made only
through surrender of an equal face amount of Treasury notes of series B-1937,
which will be accepted at par and should accompany the subscription. Couponsdated April 15, 1937, must be attached to the notes when surrendered, and sub-,
scribers will be credited with accrued interest thereon from October 15, 1936, to
March 15, 1937 ($12.445055 per $1,000); they will be charged with accrued interest
on the bonds from December 15, 1936, to March 15, 1937 ($6.181319 per $1,000) r
and the net adjustment ($6.263736 per $1,000) will be paid to them following
acceptance of the notes.
GENERAL PROVISIONS
As fiscal agents of the United States, Federal Reserve banks are authorized
and requested to receive subscriptions.^ * * *
HENRY MORGENTHAU,
Jr.,
Secretary of the Treasury.
Exhibit 6
Allotments on exchange subscriptions, Treasury bonds of 1949-53 (additional)
(from press releases. Mar. 9 and 15, 1937 V
On March 8, 1937, Secretary of the Treasury Morgenthau announced that
the subscription books for the offering of 2}^ percent Treasury bonds of 1949-53
would close at the close of business, March 10, 1937. Reports received from the
Federal Reserve banks showed that $483,845,600 of Treasury notes of series
B-1937, maturing April 15, 1937, were exchanged for the bonds. Subscriptions
were allotted in full.
Allotments^ were divided among the Federal Reserve districts and the Treasury
as follows:
.Federal .Reserve, district
Boston
New York.Philadelphia
Cleveland—_
Richmond..
Atlanta
Chicago
St. Louis
Subscriptions
received .and
allotted
$20,857,700
320,529,600
3,925, 800
11,992,900
29,942,100
2, 773,300
56,942,100
8, 683, 500
Federal Reserve district
Subscriptions
received and
allotted
Minneapolis..
Kansas City..
Dallas
San Francisco.
Treasury
$1,710,800
Total...
483,845,600
4,494,700
964, 700
15, 770, 200
6, 268,300
Exhibit 7
Offering of iy% percent Treasury notes of series D-1939 and 1% percent Treasury
notes of series A-1942
On June 7, 1937, Secretary of the Treasury Morgenthau offered for subscription
two series of Treasury notes maturing September 15, 1939, and March 15, 1942/
respectively. In the related press release it was stated that special Treasury bills
aggregating $300,000,000 would mature immediately after June 15, and about
$157,000,000 interest on the public debt would become payable on that date.
1 Omitted portion similar to corresponding section of Department Circular No. 567, p . 225.
» Revised Mar..29, 1937.
REPORT OF THE SECRETARY OF THE TREASURY
233
[Department Circular No. 576. Public Debt]
TREASURY DEPARTMENT,
Washington, June 7, 1937.
OFFERING OF NOTES
The Secretary of IJtie Treasury, pursuant to the authority of the Second Liberty
Bond Act, approved September 24, 1917, as amended, invites subscriptions, at
par and accrued interest, from the people of the United States for notes of the
United States in two series, designated 1% percent Treasury notes of series D-1939
and 1% percent Treasury notes of series A-1942, respectively. The amount of
the offeririg of each series of notes is $400,000,000, or thereabouts.
DESCRIPTION OF NOTES
The notes of series D-1939 will be" dated June T5, 1937, and will bearanterest
from that date at the rate of 1% percent per annum, payable on a semiannual
basis on September 15, 1937, and thereafter on March 15 and September 15 in
each year. They will mature September 15, 1939, and will not be subject to call
for redemption prior to maturity.
The notes of series A-1942 will be dated June 15, 1937, and will bear interest
from that date at the rate of 1% percent per annum, payable on a semiannual
basis on September 15, 1937, and thereafter on March 15 and September 15 in
each year. They will mature March 15, 1942, and will not be subject to call for
redemption prior to maturity.^ * * *
SUBSCRIPTION AND ALLOTMENT
Subscriptions will be received at the Federal Reserve banks and branches and
at the Treasury Department, Washington. Banking institutions generally may
submit subscriptions for account of customers, but only the Federal Reserve
banks and the Treasury Department are authorized to act as official agencies.
Others than banking institutions will not be permitted to enter subscriptions
except for their own account. Subscriptions from banks and trust companies
for their own account will be received without deposit but will be restricted
in each case and for each series to an-amount not exceeding one-half of the
combined capital and surplus of the subscribing bank or trust company. Subscriptions from all others must be accompanied by payment of 10 percent of
the amourit of notes applied for. The Secretary of the Treasury reserves the
right to close the books as to any or all subscriptions or classes of subscriptions
at any time without notice.
The Secretary of the Treasury reserves the right to reject any subscription, in
whole or in part, to allot less than the amount of notes applied for, to make allotments in full upon applications for smaller amounts and to make reduced allotments upon, or to reject, applications for larger amounts, or to adopt any or all
of said methods or such other methods of allotment and classification of allotments as shall be deemed by him to be in the public interest; and his action in
any or all of these respects shall be final. Allotment notices will be sent out
promptly upon allotment, and the basis of the allotment will be publicly announced.
PAYMENT
Payment at par and accrued interest, if any, for notes allotted hereunder must
be made or completed on or before June 15, 1937, or on later allotment. In
every case where payment is not so completed, the payment with application up
to 10 percent of the amount of notes applied for shall, upon declaration made by
the Secretary of the Treasury in his discretion, be forfeited to the United States.
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.
GENERAL
PROVISIONS
As fiscal agents of the United States, Federal Reserve banks are authorized and
.requested to receive subscriptions * * *.
HENRY MORGENTHAU,
Jr.,
Secretary of the Treasury,
1 Omitted portions similar to corresponding sections of Department Circular No. 573, p. 229.
234
REPORT OF THE SECRETARY OF THE TREASURY
Exhibit 8
Subscriptions and allotments. Treasury notes of series D-1939 and series A-194^
(from press releases, June 8, 11, and 15, 1937 0
On June 8, 1937, Secretary of the Treasury Morgenthau announced that thesubscription books for the offering of 1% percent Treasury notes of series D-1939'
and 1% percent Treasury notes of series A-1942, closed at the close of businessJune 7, 1937. Reports received from the Federal Reserve banks showed that
for the notes of series D-1939, which were for $400,000,000 or thereabouts,,
subscriptions aggregated $2,499,699,100, of which $426,554,600 was aUotted.
For the offering of notes of series A-1942, which was for $400,000,000 or thereabouts, , subscriptions aggregated $2,496,676,400, of which $426,349,500 was:
allotted.
Subscriptions for both series of notes in amounts up to and including $1,000<
were allotted in full and those in amounts over $1,000 were allotted 17 percent,
but not less than $1,000 on any one subscription.
Subscriptions and allotments were divided among the Federal Reserve districts;
and the Treasury as follows:
Treasury notes
Federal Reserve district
Series D-1939
Subscriptions
received
Boston
New York
Philadelphia..
• Cleveland
Richmond.-...
Atlanta
Chicago..
St. Louis
Minneapolis...
Kansas C i t y . . .
Dallas
San Francisco..
Treasury
Total
Series A-1942
Subscriptions Subscriptions
allotted
received
Subscriptionsallotted
$243, 693,
1,225,393,
119,060,
156,021,
76,511,
63, 640,
252,494,
64,465,
18, 269,
50,117,
42,164,
188,135,
750,
$41,492,000
208,454, 200
20,303, 500
26,616,000
12.890,000
10,898,000
43,261,300
11,427,400
196,500
631,000
243,700
013, 500
127,500
$221, 147,200
1,252,354,900
159,076, 500
145,593,100
83,870,000
67,960,700
,253,458,800
67,016,100
20,536,200
37,376,400
40,268,300
147,511, 500
516,700
$37,726,500*
213,104,200'
27,125,20024,996,700'
14,369,300'
11,673,100*
43,444,100'
11,807,000'
3,550,000'
6,428,000'
6,925,700>
25,110,00089,700'
2,499,699,100
426,554,600
2,496, 676,400
426,349,500-
Issues of Treasury bills
Exhibit 9
Inviting tenders for Treasury bills dated July 1, 1936 (press release, June 26, 1936}
TREASURY DEPARTMENT,
Washington, June 26, 1936.
The Secretary of the Treasury gives notice that tenders are invited for Treasury
bills to the amount of $50,00.0,000, or thereabouts. They will be 273-day bills;
and will be sold oil a discount basis to the highest bidders. Tenders will bereceived at the Federal Reserve banks, or the branches thereof, up to 2 o'clock
p. m., eastern standard time, on Monday, June 29, 1936. Tenders will not be
re cei veld at the Treasury Department, Washington.
The Treasury bills will be dated July 1, 1936, and will mature on March 31,
1937, and on the maturity date the face amount will be payable without interest.
They will be issued in bearer form only, and in amounts or denominations of $1,000,
$10,000, $100,000, $500,000, and $1,000,000 (maturity value).
It is urged that tenders be made on the printed forms and forwarded in the
special envelopes which will be supplied by the Federal Reserve banks or branches
upon application therefor.
• •
No tender for an amount less than $1,000 will be considered. Each tender must
be in multiples of $1,000. The price offered must be expressed on the basis of
100, with not more than three decimal places, e. g., 99.125. Fractions must not
be used.
» Revised J u l y 1,1937.
REPORT OF THE SECRETARY OF THE TREASURY
235
Tenders will be accepted without cash deposit from incorporated banks and
trust companies and from responsible! and recognized dealers in investment
securities. Tenders froin others must be accompanied by a deposit of 10 percent
of the face amount of Treasury bills applied for, unless the tenders are accompanied
by an express guaranty of payment by an incorporated bank or trust company.
Immediately after the closing hour for receipt of tenders on June 29, 1936, all
tenders received at the Federal Reserve banks or branches thereof up to the closing^
hour will be opened and public announcement of the acceptable prices will follow
as soon as possible thereafter, probably on the following morning. The Secretary
of the Treasury expressly reserves the right to reject any or all tenders or parts
of tenders, and to allot less than the amount applied for, and his action in any
such respect shall be. final. . Those subnaitting tenders will be advised of the
acceptance or rejection thereof. Payment at the price offered for Treasury bills
allotted must be made at the Fedieral Reserve banks in cash or other immediately
available funds on July 1, 1936.
The Treasury bills will be exempt, as to principal and interest, and any gain
from the sale or other disposition thereof will also be exempt from all taxation
except estate and inheritance taxes. (Attention is invited to Treasury Decision
4550, ruling that Treasury bills are not exempt from the gift tax.) No loss from
the sale or other disposition of the Treasury bills shall be allowed as a deduction,
or otherwise recognized, for the purposes of any tax now or hereafter imposed by
the United States or any of its possessions.
Treasury Department Circular No. 418, as amended, and this notice prescribe
the terms of the Treasury bills and govern the conditions of their issue. Copies
of the circular may be obtained from any Federal Reserve bank or branch thereof.
Exhibit 10
Acceptance of tenders for Treasury bills dated July 1, 1936 (press release, June SO,
TREASURY
DEPARTMENT,
Washington, June 30, 1936.
Secretary of the Treasury Morgenthau announced last evening that the tenders
for $50,000,000, or thereabouts, of 273-day Treasury bills, dated July 1, 1936,
and maturing March 31, 1937, which were offered on June 26, were opened at the
Federal Reserve banks on June 29.
The total amount applied for was $154,933,000, of which $50,015,000 wa&
accepted. Except for one bid of $15,000, the accepted bids ranged in price from
99.861, equivalent to a rate of about 0.183 percent per annum, to 99.847, equivalent to a rate of about 0.202 percent per annum, on a bank discount basis. The
average price of Treasury bills to be issued is 99.855 and the average rate is about
0.191 percent per annum on a bank discount basis.
Exhibit 11
Press releases pertaining to Treasury bill issues during the fiscal year 1937 were
similar in form to the foregoing and are, therefore, not here reproduced. The
essential details regarding each issue are summarized in the following table:
Summary of information contained in press releases issued in connection with Treasury bills offered during the fiscal year 1937
CO
B i d s accepted
D a t e of issue
D a t e of m a t u r i t y
Highest
Price
(per
hundred)
Average
Lowest
Equivalent
rate i
(percent)
Price
(per
hundred)
Equivalent
ratei
(percent)
Amount
(in t h o u sands)
D a t e of press releases
Price
(per
hundred)
Mar.
Apr.
Apr.
Apr.
Apr.
May
May
May
May
June
June
J u n e 16..
J u n e 23..
June 30J u l y 7._.
J u l y 14..
July 21..
J u l y 28..
Aug. 4...
A u g . 11.
A u g . 18.
A u g . 25.
Mar.
Sept,
Mar.
Sept,
Mar.
Sept,
Mar.
Sept
Mar,
Sept
O
n
o
1936
273 1 $154,933 2 $99. 861
99. 955
273 179,143
27il
167, 814
273 169,959
27 S
141,262
273 169,772
273 155, 235
273 182,740
273 197, 603
273 176,162
273 140,137
273 104, 697
273 132, 397
273 141, 680
273 175, 240
273 192,136
273 172,935
273 176,251
273 147, 017
274 137,136
273 136, 273
273 159,737
1,04
138, 444
273 128,097
97 106, 205
273 131,707
91 163, 961
90, 715
273
84 105, 207
103,
035
273
78 140,621
1
118,115
273
99. 955
99. 947
99. 945
99. 841
3 99. 864
99.866
99. 876
99. 909
99.906
< 99. 905
99. 910
99. 910
6 99.886
99. 900
99. 909
99. 916
99. 915
99.926
99. 939
99. 936
100. 000
8 99.940
100. 000
99.940
100. 000
99. 962
100. 000
99. 922
6 99. 993
0.183
.059
.059
.070
.073
.210
.179
.177
.164
.120
.124
.125
.119
.119
.150
.132
.120
.111
.112
.097
.080
.084
.000
.079
.000
.079
.000
.050
.000
.103
.032
.200
$99. 847
99. 939
99. 939
99. 864
99. 811
99. 818
99. 832
99. 850
99. 867
99. 883
99. 897
99. 881
99. 877
99. 849
99. 873
99. 891
99. 902
99. 907
99. 909
99. 918
99. 919
99. 936
99. 986
99. 927
99. 984
99. 925
99.990
99. 885
99. 965
99. 811
99. 961
99. 751
0.202
.179
.249
.240
.222
.198
.175
.154
.136
.157
.162
.199
.167
.144
.129
.123
.120
.108
.107
.084
.048
.098
.059
.099
.040
.152
.150
.249
.180
.328
$50, 015
50, 000
50,052
49,990
50,047
50, 019
50, 090
50,064
50, 046
50, 012
50,147
60, 022
50, 022
50,121
50,045
50,133
50, 060
50,159
50,113
50,145
50, 083
50, 00.0
50, 044
50, 057
50, 012
50, 027
50, 225
50, 005
50, 057
50, 025
50, 033
50, 040
$99.855
99. 949
99. 946
99. 913
99. 830
99. 825
99. 839
99. 853
99. 871
99.887
99. 901
99. 889
99. 881
99. 859
99. 877
99. 893
99. 906
99. 909
99. 913
99. 919
99. 923
99. 936
99. 989
99. 933
99. 989
99. 930
99. 990
99. 911
99. 982
99. 830
99. 976
99. 777
D a t e of
closing
Equivalent
rate i
(percent)
1937
1936
Julyl.....
July 8...July 15...
July 22...
July 29...
Aug. 5--Aug. 12..
A u g . 19...
Aug. 26..
Sept. 2 . . .
Sept. 9 . . .
Sept. 16..
Sept. 2 3 . .
Sept. 30..
Oct. 7 . . .
Oct. 14...
Oct. 2 1 . .
Oct. 2 8 - .
Nov. 4 . .
N o v . 10.
N o v . 18.
Nov. 25.
Dec. 2 . . .
DcDec. 9 . . .
Do..
Dec. 16..
Do.Dec. 2 3 . .
Do..
Dec. 3 0 Do..
Total
amount
D a y s to a p p l i e d
matufor (in
rity
thousands)
0.191
.067
.071
.115
.224
.230
.213
.194
.170
.149
.130
.146
.156
.186
.162
.141
.124
.120
.115
. 106
.101
.084
.040
.088
.041
.092
.038
.117
.076
.225
.109
.294
J u n e 26 a n d 30
July 3 and 7
J u l y 10 a n d 1 4 . . . . . .
J u l y 17 a n d 21
J u l y 24 a n d 28
J u l y 31 a n d Aug. 4 .
A u g . 7 a n d 11
A u g . 14 a n d 18
A u g . 21 a n d 25
A u g . 28 a n d Sept. 1
Sept. 2 a n d 5
Sept. H a n d 15
Sept. 18 a n d 22
Sept. 25 a n d 29
Oct. 2 a n d 6
Oct. 7 a n d 10
Oct. 16 a n d 20
Oct. 23 a n d 27
Oct. 28 a n d 31
Nov. 4 and 7
N o v . 13 a n d 17
N o v . 20 a n d 24
|NOV.
27 a n d D e c . 1.
1936
June
July
July
July
July
Aug.
Aug.
Aug.
Aug.
Aug.
Sept.
Sept.
Sept.
Sept.
Oct.
Oct.
Oct.
Oct.
Oct.
Nov.
29
6
13
20
27
3
10
17
24
31
4
14
21
28
5
9
19
26
30
6
N O V . 16
N o v . 23
N o v . 30
JDec. 4 and 8 . . . . . . . .
Dec.
7
JDec. 11 a n d 15
Dec.
14
J D e c . 18 a n d 22
Dec.
21
} b e c . 24 a n d 29
Dec.
28
w
O
H3
O
H
&)
a
'
i&3^
Jan. 6 . . . . . . .
Do-...
1-^
^
o
f
I,
^
^
tj
J a n . 13
J a n . 20
J a n . 27
Feb. 3
Feb. 10.....
F e b . 17
Feb. 2 4 . . - .
Mar. 3......
Do-...
Mar. 10...:
D0...1.
M a r .r 1 7 . . . . .
D.o-.-.
Mar. 24..J.
Do....:
Mar. 3 1 . . . :
Do.....
Mar. 1 8 - :
Oct. 6
......
Oct. 1 3 .
..-..
Oct. 20
Oct. 27.
Nov. 3 - . :
...
•Nov. 10
.
'.Nov. 17
- .
Nov. 24:.........:..
June-16..—...^..
Dec. k . . . : : . . . J . . _
J u n e 16.:
....
Dec. 8
....
June 17:..L_..._'j..
Dec. 1 5 i . . . . . . . _ • _ .
;Junea7.
:..
Dec. 22
-J...
June 18....
.
Dec. 29.
Apr. 7
"..
Do...:..
Apr. 1 4 . . . . . .
A p r . 21
Do
.
Apr.428......
Do......
M a y 5 . . . J..
...Do-..-.
M a y 12:..:. _
Do-._._
MayrlO.i
Do.
May,26
Do-....
June2
: Do.^
Junel9.
J u n e 162
June,.23...:..
June?30-.-_—
.Junel8- 1937i-.-.:
J a n . 5, 1 9 3 8 . . : . . . . .
. J a n . 12,^ 1 9 3 8 . - . . . : . .
Sept. 16, 1937
.
J a n . 19, 193.8.........
' S e p t . 16, 1 9 3 7 . . : . . 1
vJari..26, 1 9 3 8 . . . . . .
Sept. 17, 1 9 3 7 . . . . . .
F e b . 2, 1 9 3 8 . . . . _ :
Sepf. 17, 1937..::...
•Feb.-9, M s
...
-Sept. 18ri937....-.i
. F e b . 16;-1938.-Sept. 185; 1 9 3 7 . . . ' . •"-iFeb. 23,1938
.
Sept;.18', 1937...-..:
Mari: 2,^J1938.1
..Mar-9,U938j:..._.
:'Mar; 16-v 1938:
Mar.^23, 1938.._-..•
•Mar^30, I938-.....:
:
V 98
273
92
273
. 85
273
. 79
273
105; 265
131,040
125,862
124^392
134,878
191,855
179,465
154,486
134,519
111,863
114,519
153,617
130,-196
140,722
106, 662
88,640
99,782
122; 846
178,883
99:980
8 99. 776
0 99. 810
99.810
99.755
,99.760
99. 742
99.745.
99; 776
.99.953
99.775
10^99; 971
ii''99:-.697
99:977
,12.99.666
"•^99. 970
99.:666
.13"99. 930
"99^-555
;10i
.295
.251
.251
.323
.316
.340
^336
.295
i.l61
•. 297
.107
:400
.090
'."440
".127
;440
.319
.587
99. 955
99. 745
99: 728
99.-721
99:717
99:694
99. 707
99.-706
-99:700
99; 927
..99:666
•99.-940
99:644
99.946
99.556
99.-865
99-409
99:898
99:492
: 79, 650
159,783
126,121
154,224
134,-330
160,313
139,477
132,280
135,389
138^.172
164,362
171,777
169, 035
171,019
185,551
140,170
179,085
131,178
140, 238
127',407:
123,.676
99.950
5 99. 546
: 99.550
399; 820.
3 99. 510
99:808
99. 523
99. 974
• 99.-621
99. 826
99.520
99.898
99. 500
' 99.870
,99.545
99.:895
1 99^:829
;'5 99.621
•; .99.621
: : 99; 636
; : 99. 583
-.250
;,599
.593
.438
.646
V490
'99.-870
99. 469
99..462
99. 765
99. 446
,99. 779
. 99.^432
99:788
99.^.418
99;^ 812
99:434
99:835
99:472
99:^859
99. 524
99;885
99J561
,:-99:-572
• 99:545
99.-553
99.'.519
.250
.440
.220
.469
.211
.585
.572
.779
..465
\670
50, 055
50,125
. 50„:022
50,015
50, 038
50,385
50.:025
•50, 027
50,024
50,023
^-50; 004
50, 055
50, 010
50,081
60,0i2
50,020
50,177
50,153
50,004
99. 961
99. 760
99. 747
99. 738
99; 726
99.696
99. 717
99. 717
99. 708
99. 935
.99. 695
' 99: 951
99:656
- 99. 956
•99:602
99.896
99r461
99.901
99; 512.
.199
.316
:333
.345
.361
.401
.373
.373
.386
:224
..402
.179
.454
.173
.625
.440
;-711
.450
.643
.650
.700
.709
.572
.731
.564
.749
.565
-.767
.529
:746
.487
. 696
.441
'. 628
-. 383
: 579
. 564
.600
.589
.634
50,044
50,049
5d,<022
50, 025
• 50,-300
. 50, "024
50, 052
50, 045
50, 014
50,072
50,027.
50,140
50,044
50,182
50;019
50,;112
50,..027
50,000
50,045
50,120
50,015
99:897
99. 499
99. 494
99.-776
.99:469
99. 787
99; 458
;99:801
99.440
99:820
99:452
99:838
.-99.480
•99.863
99. 532
99^888
99: 574
99: 586
'99:566
; 99; 562
99. 531
.613
: 661
.667
.545
. 701
.543
..715
.531
.738
. 507
.723
..479
.685
.430
.617
.375
:562
.545
.572
•578
1619
.228
.336
.359
.368
.373
.404
im
i&37
^De'c. 31, 1936, a n d J a n . 5.
J a n . 8 a n d 12
:..
•Jan. 15 a n d 19
..
J a n . 22and.:26
J a n , 29 a n d F e b . 2
Feb. 5 and 9
..-.,
F e b . 11 a n d 16
.
F e b . 17 a n d 20
Jan.
Jan.
Jan.
Jan.
Feb.
Feb.
Feb.
Feb.
4
11
18
25
1
8
15
19
[Feb. 26 a n d M a t . 2
Mar.
1
[Mar. 5 and 9
...
Mar.
8
[ M a r . 12 a n d 1 6 . .
...
M a t . 15
[ M a r . 19 a n d 23-
...
M a r . 22
iMar. 2 6 a n d 3 0 : . . . . . - . . .
M a r . 29
| A p r . 2and.6.._.Apr. 9 and 1 3 . . . . . . . .
JApr: 16 a n d 20
Apr. 5
A p r . 12
A p r . 19
}Apr. 2 3 a n d 2 7 . . . . . . " .
A p r . 26
1937 a n d l 9 3 8 "
1-Bank discount^basis:
v .? E x c e p t for one bid. of $15,000.
3 E x c e p t for one-bid of $10,000.
< E x c e p t for one b i d of $50,000.^
6 Except: for one b i d of $5,000..
71
273
273
273
273
273
273
273
273
• 105
273
72
273
273
.148.
273
141
273
135
•273
128
.273
122
273
115273
108
' 273
273
273
273
•273
s Except
' Except
s.Except
"'Except
0 Except
;500
•.-.489
.633
-.301
.659
.407
.600
.350
.225
.500
;50P
;480
.'650
for .one b i d .of ^$9,000:, ^
forgone bid'of $30,000:
for:2.bid?totaling $25,000.
for 2 b i d s totaling $55,000.
f o r o n e b i d of $500,000.
" Except
;i2 E x c e p t
.13 E x c e p t
" Except
15 E x c e p t
JApr; 30 a n d M a y 4i
May
}Ma:y 7 a n d 1 1 . .
M a y 10
I May H a n d 18
M a y 17
I May 21 a n d 25
M a y 24
JMay 26 a n d 29
May
June
June
June
June
June
June
June
Tune
4and8
11 a n d 15
18 a n d 22
25 a n d 29
for one b i d of $100,000.
for one b i d of $20,000.
for one.bid of $25,000.
for one b i d of $95,000.
for 2 b i d s totaling $35,000.
3
28
7
14
21
28
ISO
CO
<5
238
REPORT OF THE SECRETARY OF THE TREASURY
United States savings bonds
ExhiWtl2
.
Offering of United States savings bonds, series C
On January 1, 1937, Secretary of the Treasury Morgenthau offered for sale,
through the Postal Service, and other designated agencies, United States savings
bonds,°series C, as described in the following circular:
[Department Circular No. 671. Public Debt]
TREASURY
DEPARTMENT,
Washington, December 16, 19.36.
OFFERING OF UNITED STATES SAVINGS BONDS, SERIES C
1. The Secretary of the Treasury, pursuant to the authority of the Second
Liberty Bond Act, approved September 24, 1917, as amended, offers for sale, to
the people of the United States, through the Postal Service and other designated
agencies (see par. 6), an issue of bonds of the United States, designated United
States savings bonds, series C, which will be issued on a discount basis, in amounts
of $25 (maturity value) and multiples thereof, will mature in 10 years from the
issue date, but will be redeemable before maturity at the option of owners. These
bonds will be placed on sale beginning January 1, 1937, and will continue to be on
sale until this offering is terminated by notice given by the Secretary of the Treas-.
ury to the Postmaster General and to other designated sales agencies.
2. By notice heretofore given to the Postmaster General, the sale of United
States savings bonds of series B pursuant to Department Circular No. 554,
dated Decembier 16, 1935, will terminate on December 31, 1936. All applications
for United States savings bonds received by mail subsequent to December 31,
1936, will be treated as applications for series C bonds.
DESCRIPTION OF BONDS OFFERED
3. United States savings bonds, series C, will be issued only in registered form,
in denominations of $25, $50, $100, $500, and $1,000 (maturity values), at prices
hereinafter set forth, and will bear the name and address of the owner and the date
as of which issued, which on original issue shall be inscribed thereon by the
authorized postmaster (or other agent) at the time of issue, and an imprint of the
dating stamp (with current date) of the postmaster or other issuing agent in the
circle in the lower left corner of the bond. All such savings bonds are to be dated
as of the first day of the month in which the issue price is received, and will
mature and be payable 10 years from such issue date. They may be redeemed
prior to maturity (but not within 60 days after the issue date), at the owner's
option, in accordance with the table of redemption values appearing at the end of
this circular. They may not be called for redemption by the Secretary of the
Treasury prior to maturity. A table of redemption values for each bond appears
on the face thereof. Partial redemption of savings bonds of denonainations other
than $25 (maturity value) will be permitted in accordance with Treasury Department Circular No. 530, Revised. No interest will be-paid on savings bonds, but
the purchase price has been fixed so as to afford an investment yield of about 2.9
percent per annum compounded semiannually if the bonds are held to maturity.
If the owner exercises his option to redeem a bond prior to maturity the yield will
be less, varying with the respective redemption values.
4. The savings bonds will not be transferable, and will be payable only to the
owner named thereon^ except in case of death or disability of the owner or as a
result of judicial proceedings, or as otherwise specifically provided in, and in any
event only in accordance with, regulations prescribed from time to time by the
Secretary of the Treasury (see Treasury Department Circular No. 530, Revised).
Savings bonds shall be valid only if inscribed with the owner's name and address,
dated the first day of the month in which the issue price is received, and duly
delivered by an authorized postmaster or other issuing agent; they will bear the
facsimile signature of the Secretary of the Treasury, and the seal of the Treasury
Department will be impressed thereon; if issued by a postmaster they will bear the
post office dating (money order) stamp, and if issued by another agent they will
bear the dating stamp of that agent.
5. The savings bonds shall be exempt, both as to principal and interest, from all
taxation now or hereafter imposed by the United States, any State, or any of the
REPORT OF THE SECRETARY OF THE TREASURY
239
possessions of the United States, or by any local taxing authority, except (a)
estate-or unheritance taxes, or igift. taxes, and (6) graduated additional income
taxes, commonly known as surtaxes, and excess-profits and war-profits taxes, now
or hereiafter iniposed by the* Uriite'd States, up6ii the incoriie or profits of individuals, partnerships, associations, or corporations. The interest on an amount of
bonds authorized by the Second Liberty Bond Act, approved September 24, 1917,
as amended, 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. For the purposes of determining
taxes and tax exemptions, the increment in value of savings bonds represented
•by the difference between the price paid and the redemption value received
(whether at or before maturity) shall be considered as interest.
PURCHASE
6. Savings bonds of series C may be purchased for cash, at post offices of the
first, second, and third classes, and at selected post offices of the fourth class, at
any time while this offer is in effect; and, subject to regulations prescribed by the
Board of Trustees of the Postal Savings System, the withdrawal of postal savings
deposits will be permitted fpr the purpose of acquiring savings bonds. Savings
bonds may also be purchased by mail upon application to the Treasurer of the
United States, Washington, D. C., or to any Federal Reserve bank, accompanied
by a remittance to cover the issue price. Any Federal credit union or Federal
savings and loan association which has been designated and has qualified for
employment as fiscal agent of the United States for the purpose may accept, from
its members only, applications for United States savings bonds, accompanied by
remittance of the purchase price, and will transmit such applications and remittances to the appropriate Federal Reserve bank for issue of the bonds.^ The issue
prices of the various denominations of savings bonds of series C follow:
Denomination
{maturity value)
$25
50
100
500
1,000
fJ,ii^L,\
^%^cT^
.
.
.
-.
$18.75
37.50
75.00
375.00
. _ . . 750.00
__
LIMITATION ON HOLDINGS
7. Section 22 of the Second Liberty Bond Act, as amended, provides that it
shall not be lawful for any one person at any one time to hold savings bonds issued
during any one calendar year in an aggregate amount exceeding $10,000 maturity
value. In determining whether this limitation is exceeded at any time by any
one person, there must be taken into account the agg egate present interest oi
that person at such time in the maturity value of all savings bonds issued during
any one calendar year including, but not limited to, (a) the entire maturity value
of (1) bonds registered in the name of that person, (2) those registered in his name
with another named as coowner; as well as (b) the extent of his present interest
in (3) those held for his benefit by a fiduciary and (4) those in which a present
interest has been acquired by him on the death of another or on the happening
of any other contingency. Bonds of which the person is merely the designated
beneficiary in case of the death of the owner, or bonds which are held by him in a
fiduciary capacity only, or those in the income and principal of which he has only
a future interest need not be included. If any person at any time acquires a present interest in savings bonds issued during any one calendar year in an amount
exceeding $10,000 maturity value, he should immediately surrender an amount
equal to the excess, which will be redeemed at the redemption value current on
the date the excess was acquired.^
AUTHORIZED FORMS OF REGISTRATION
8. United States savings bonds may be registered in the name of any natural
person whether an adult or a minor, in-the names of two (but not more than two)
1 For regulations governing Federal savings and loan associations and Federal credit unions, as fiscal agents
of the United States, in connection with the sale of United States savings bonds to their members, see
Department Circular No. 668, dated Sept. 15, 1936 (p. 256).
2 Any one person may hold up to $10,000, maturity value, of savings bonds issued during any one calendar
year and up to an additional $10,000, maturity value, issued in each succeeding calendar year (Jan. 1 to
Dec. 31), so long as these bonds are offered for sale.
'240
REPORT OF THE SECRETARY OF THE TREASURY
natural persons as' coowriers, in the name of one natural person'and a single designated natural person as beneficiary incase of death, in the name of any incorporated or unincorporated body, and in the name of a, fiduciary: Full information
as to the authorized forms of registration for United States savings bonds is given
in section I of Department Circular No; 530, Revised, copies of which circular.may
be seen at any post office and may be obtained from the Treasury Department,
Division of Loans and Currency, Washington, D. C.y or from any Federal Reserve bank;,
. , , . ' , ' ; .
•DELIVERY AND SAFEKEEPING OF BONDS •
•' 9. Postmasters and other agents from whom savings bonds may be purchased
are authorized to deliver such bonds duly inscribed and dated upon receipt of the
issue price. Delivery should not be accepted by any purchaser until he has verified
that his name and address are duly and correctly inscribed on the face of the
bond, that the bond is duly dated as of the first day of the month, in which payment pf the issue price was feceived, and'that the dating staniip (with current date)
of the postmaster or other issuing agent is imprinted in the circle in the lower left
corner of the bond. .
.
/
. , ,
'. '
10. Any savings bond will be held in safekeeping without charge by the Secretary of the Treasury if the purchaser so desires, and in.this connection the Secretary will utilize the facilities of the Federal Reserve banks as fiscal agents of the
United States. The purchaser may arrange for such safekeeping as provided in
Department Circular No. 530, Revis^d,^ at the time he purchases his bond or
subsequently. Postmasters generally will ass'ist^ owners in arranging for safekeeping, but will not act as safekeeping agents.
PAYMENT AT MATURITY OR' ON REDEMPTION PRIOR TO MATURITY 2
11. Any savings bond will be paid in full at maturity, or redeemed in whole or
in part at the appropriate redemption value prior to maturity (but not within 60
.days after the issue date), in accordance with the terms of the bond, as provided
in Department Circular No. 530, Revised, following presentation and surrender
of the bond, by registered mail or otherwise, at the expense and risk of the owner,
to the Treasury Department, Division of Loans and Currency, Washington, D . C ,
either direct or through any Federal Reserve bank, with the request for payment
appearing on the back of the bond duly executed by the owner in the presence of
and certified by (1) any United States postmaster or any other post office oflacial
authorized for that purpose (see Department Circular No. 530, Revised), whose
signature must be authenticated by the imprint of his post office dating stamp;
(2) an executive officer of an incorporated bank or trust company (authenticated
by the impress of the corporate seal of the bdnk or trust company); or (3)' any other
person duly designated by the Secretary of the Treasury for the purpose. In'case
of the death or disability of the registered owner, instructions should be obtained
from the Treasury Department, Division of Loans and Currency, Washington,
D. C , before the request for pa,ymeht is executed. Postmasters' generally will
assist owners in Securing payment at or before maturity, but they will not ihake
payment of savings bonds. Payment ^ill be made by check drawn to the order of
the owner, or other person entitled to payment, promptly after discharge of registration at the Treasury Department.
•
AUTHORIZED REISSUES '
12. Reissue of savings bonds in a different form of registration is authorized in
certain instances, concerning which full information is given in Department
Circular No. 530, Revised.
• . . •
SERIES DESIGNATION
13. United States savings bonds of series C, issued during.the calendar year ,1937,
as evidenced by the issue date inscribed thereon at the time of issue, will foriii a
separate series hereby designated series C-1937. Savings bonds of series A, issued
during the calendar year 1935 are hereby designated, series A-1935, and those
of series B issued during the calendar year 1936 are hereby designated series
:B-1936. .
•
• . , : . .
.
. , , , . . ^ ...
.
GENERAL PROVISIONS
14. All sayings bonds issued pursuant.; to this circular shall be subject to regulations prescribed from time to time by the Secretary of. the .Treasury. Such
regulations may require, among other :things, reasonable notice in case of presen1 Department Circular No. 630, Revised, on p. 242.
8 Amended, see p. 241.
241
BEPORT .OF .THE SECRETARY OF .THE TREASURY
tation of savings bonds for redemption prior to maturity... The regulations governing savings bonds issued hereunder are contained in Treasury Department
Circular No.,530, Revised.: .'
15. The Secretary of the Treasury may designate agencies other than those
herein designated for the sale of savings bonds of this series, and he reserves the
right to refuse to issue or permit to be issued hereunder any such savings bonds in.
any case or class or classes of cases if he deems such action to be in the public
interest.
16. Postmasters of the first, second, and third classes, and selected postmasters
of the fourth class, under regulations promulgated by the Postmaster General, and
Federal Reserve banks and designated and qualified Federal credit unions and
Federal siavings and loan associations, as fiscaL agents of the United S'tates, are
authorized to perform' such fiscal agency services as may be requested of them in
connection with the issue, delivery, safekeeping, redemption, and payment of
savings bonds.
17. The Secretary of the Treasury may at any time or from time to time supple-,
ment or amend the terms of this circular, information as to which will be promptly
furnished to the Postmaster General and other agents acting as fiscal agents of the
United States in connection with savings bonds.
HENRY MORGENTHAU,
Jr.,
Secretary of the Treasury.
Table showing how United States savings bonds of series C increase in value
during the successive half-years following issue: ^
Maturity valueIssue price
--
$25. 00
18.75
$50. 00
37.50
$100. 00
75.00
$500. 00
375. 00
$1, 000. 00
750. 00
375.00
380.00
385.00
390.00
.395.00
400.00
405.00
410.00
' 415.00
420.00
: 425. 00
430. 00
435.00
440. 00
450.00
460. 00
470. 00
480. 00
490.00
750. 00
760. 00
7.70.00
• 780.00
790.00
800.00
810. 00
• 820.00
':830.00
• 840.00
850.00
860.00
870.00
880. 00
900.00
920. 00
940. 00
960. 00
980. 00
500.00
1,000.00
Re demption values after the issue date
First year
1 to I H y e a r s . . .
IH to 2 years...
2 to 23^ years...
2>^ to 3 years.-.
3 to 3H years...
3M to 4 years...
4 to 43/^ years...
4H to 5 years...
6,to 5^/^ years..5H to.6 years...
6 "to 63^ years...
63^ to 7 years...
7 to 73^ years._73^ to 8 years...
8 to 83^ years...
83^ to 9 years...
9 to 93/^ years...
93^ to 10 years..
18.75
19.00
19. 26
19.50
19.75
20.00
20.25
20.50
20.75
. 21.00
21.25
21. 50
21.75
22.00
22.50
23.00
23.50
24.00
24.60
37.50
38.00
38.60
39.00
39.50
40.00
. 40.50
4L00
41. 50
, . 42.00
42.50
43.00
43.50
44.00
45.00
46.00
47. 00
48.00
49.00
75.00
76.00
77. 00
78.00
79.00
80.00
81. 00
82.00
83.00
84.00
85.00
86. 00
87.00
88.00
90.00
92.00
94.00
96.00
98.00
Maturity value.
25; 00
50.00
100.00
.
1 This table also applies to United States savings bonds of series A (issued between Mar. 1 and Dec. ZV,
1935), and of series B (issued during the calendar year 1936)." "
Exhibit 13
First amendment, April 23, 1937, to Department Circular No. 571, offering for sale
United States savings bonds, series C
TREASURY DEPARTMENT,
Washington, April 23,- 1937. .
Paragraph 11 of Department Circular No. 571, dated December 16, 1936, is
hereby amended to read as follows:
"11. (a) Any savings bond will be paid in full at maturity, or redeemed in
whole or in part at the .appropriate redemption .value prior to maturity (but not
within 60 days after the issue date), in accordance .with the terms of the.b,ond,
and as provided in Department Circular No. 530, Revised, following presentation and surrender of the bond, by registered mail or otherwise, at the expense
and risk of the owner, to the Treasury Department, Division of Loans and Currency, Washington, D . C , either direct or through any Federal Reserve bank.-
242
REPORT OF THE SECRETARY OF THE TREASURY
"(6) Presentation for p a y m e n t m a y also be m a d e by registered mail or otherwise, a t t h e expense a n d risk of t h e owner, a t any agency or agencies which t h e
Secretary of t h e Treasury m a y from t i m e t o t i m e by. regulation designate, a n d
u n d e r such limitations as m a y be prescribed in such regulation.^
"(c) I n all cases t h e request for p a y m e n t appearing on t h e back of t h e bond
m u s t be duly executed by t h e owner in t h e presence of a n d certified b y :
(1) Any United States p o s t m a s t e r or a n y other post office official authorized
for t h a t purpose (see D e p a r t m e n t Circular N o . 530, Revised), whose signature
inust be authenticated by t h e imprint of his post office dating s t a m p ;
(2) An executive officer of an incorporated bank or t r u s t company (authenticated by t h e impress of t h e corporate seal of t h e b a n k or t r u s t c o m p a n y ) ; or
(3) Any other person duly~ designated b y t h e Secretary of t h e Treasury for
t h a t purpose.
I n case of t h e d e a t h or disability of t h e registered owner instructions should
be obtained from t h e Treasury D e p a r t m e n t , Division of Loans a n d Currency,
Washington, D . C , before t h e request is executed.
'^(d) Postmasters generally will assist owners in securing p a y m e n t a t or before
m a t u r i t y b u t t h e y will not m a k e p a y m e n t of savings bonds. P a y m e n t in all
cases will be m a d e b y issuance of a check drawn to t h e order of t h e owner or other
person entitled t o p a y m e n t . ' '
H E N R Y MORGENTHAU,
Jr.,
Secretary of the Treasury.
Exhibit 14
Amendmejit, September 15, 1^36, to Department Circular No. 554y offering for sale
United States savings bonds, series B
TREASURY DEPARTMENT,
Washington, September 15, 1936.
D e p a r t m e n t Circular No. 554, d a t e d December 16, 1935, as amended, is hereby
further amended by inserting after t h e t h i r d sentence of t h e first p a r a g r a p h t h e
following sentence:
" A n y Federal credit union or Federal savings a n d loan association, which h a s
been designated a n d has qualified for employment as fiscal agent of t h e United
States for t h e purpose, m a y accept from its members only, applications for
United States savings bonds, accompanied, b y r e m i t t a n c e of t h e purchase price,
a n d will t r a n s m i t such applications a n d remittances t o t h e appropriate Federal
Reserve b a n k for issue of t h e b o n d s . "
W A Y N E C . TAYLOR,
Acting Secretary of the Treasury.
Exhibit 15
Department Circular No. 530, Revised, December 16, 1936, prescribing regulations
governing United States savings bonds
TREASURY DEPARTMENT,
Washington, December 16, 1936.
To Owners of United States Savings Bonds and Others Concerned:
D e p a r t m e n t Circular N o . 530, as amended, d a t e d December 2, 1935, is hereby
amended, effective J a n u a r y 1, 1937, to read as follows:
T h e following regulations governing United States savings bonds are published
for t h e information a n d guidance of all concerned:
I. REGISTRATION
1. United States savings bonds will be issued only in registered form. T h e
owner's name a n d address a n d t h e d a t e as of which t h e bond is issued will be
inscribed thereon a t t h e time of issue b y an authorized issuing agent. Except
as otherwise "specifically provided in these regulations, t h e Treasury D e p a r t m e n t
reserves t h e right to t r e a t as conclusive t h e ownership of a n d interest in t h e bond
expressed in t h e registration. No designation of a n a t t o r n e y , agent or other
1 See Department Circular No. 530, Revised, as amended 1937 ,for regulations now in effect designating
agencies for payment, p. 250.
REPORT OF THE SECRETARY OF THE TREASURY
243
representative, to receive payment on behalf of the owner may be made in the
registration; for example, registration in the form "Mr. John G. Brown, payable
to Mr. David R. Green, attorney-in-fact" will not be permitted. Registration
will not be permitted in a form which purports to restrict the right of the owner or
other person named in the registration to receive payment of the bond in accordance with these regulations; for example, registration in the form "Mr. John S.
Smith, under article 10 of the will of Henry A. Jones", or "Mr. John S. Smith,
legal guardian of Miss Mary B. Joiies, subject to the order of the probate court of
Washington County", will not be permitted.
2. The following forms of registration are authorized:
(a) In the names of natural persons, whether adults or minors, in their own
right, as follows:
(1) In the name of one person, as, for example, "Mr. John A. Jones."
(2) In the names of two (but not more than two) persons in the alternative, as,
for example, "Mr. John A. Jones or Mrs. Ella S. Jones." No other form of registration establishing cpownership as between natural persons in their own right is
authorized.
(3) In the name of one person, payable on death to a single designated benefi'cia;ry in his own right, as, for exaniple, "Mr. John A. Jones, payable on death
to Miss Mary E. Jones." ,Only a natural person may be designated as a beneficiary.
In all cases the full name of the owner, and that of the coowner or beneficiary,
if any, should be given; provided, that, if there are two. given names, an initial
may be substituted for one. Each name should be preceded by the title, "Mr.",
"Mrs.", or "Miss", as the case may be. A married woman's own given name
should be used, not that of her husband. The full post oflSce address pf each
person named in the registration should be given.
(b) In the names of fiduciaries, as follows:
(1) In the name of one or more executors, administrators, or legal guardians of
a single estate followed by reference to the estate, as, for example, "Mr. John A.
Smith, executor of the estate of Henry J. Smith, deceased", or "Mr. William C
Jones, guardian of the estate pf James B. Brown, a minor." Registration in the
names of natural guardians is not authorized.
(2) In the name of one or more trustees, or other fiduciaries of a single estate
or trust, followed by reference to the trust instrument, if any, or by other words
clearly identifying the trust, and the name of the organization or the persons who
are beneficiaries under the trust, as, for examples, "Mr. John C. Brown and the
First National Bank, trustees under the will of Henry C. Brown, for the benefit
of Mrs. Mary J. Brown", or "The Second National Bank, trustee under an agreement of trust executed by Mr. George E. White, dated February 1, 1935, for the
benefit of Mrs. Mary B. White and Miss Ella May White."
If a legal guardian holds a common fund for the account of two or more wards,
bonds should be registered for each ward separately, as each ward is deemed to
have a separate estate, even though the guardian was appointed in a single proceeding. The names of all executors, administrators, .g^ardians, trustees, or other
fiduciaries,;'must be included in the registration; provided, that in the case of
unincorporated lodges, churches, societies, or siniilar institutions the title to
whose property is held by trustees, registration may be in their titles, omitting
their names, as, for example, "Trustees of the First Baptist Church." All beneficiaries of a trust should likewise be named, if possible, but if they are too numerous
two or three of the principal beneficiaries should be named, followed by the
words "et al." In any case the Treasury Department may require a copy of the
trust instrument.
(c) In the name of any incorporated or unincorporated body, as follows:
(1) In the name of any corporation, followed by the words "a corporation",
as, for example, "Smith Manufacturing Company, a corporation."
(2) In the name of any joint stock company, followed by the words "a joint
stock company", as, for example, "The Farmers Cooperative Market Company,
a joint stock company."
(3) In the name of any unincorporated association, such as a lodge,. church,
or. society, followed by the words "ah unincorporated association", as, for example, "The Tennis Association, an unincorporated association."
(4) In the name of any partnership, followed by the words "a partnership",
as, for example, "Smith and Brown, a partnership."
The registration should be made in the full legal title of the corporation, joint
stock company, unincorporated association, or partnership, as the case may be.
No officer or member of the organization may be named in the registration; pro-
244
REPORT OF THE SECRETARY ,OF ..THE TREASURY
vided, that bonds may be registered in the title, but not the name, of! an offieerf
of a State, county, city, town pr other public corporation entrusted with pubjie
funds, followed by the name of- the body and iDy the designation of a particular
fund, if any, as, for example, "Treasurer, State of Texas (Permanent School Fund) .'^
II. LIMITATION ON TRANSFER
1. United States savings bonds are not transferable and are payable ohlyr
to the owner named thereon except in.the case of disability or death of the bwneF
or as the result of judicial proceedings or as otherwise specifically provided herein>
but in any event only in accordance with the provisions hereof.
.''
.III. LIMITATION ON HOLDINGS
1. Section 22 of the Second Liberty Bond Act,'as aiiiended, provides that i^shall not be lawful for any one person at any one time to- hold sayings bonds
issued during any 1 calendar year in''aggregate amourit exceeding $iO.,000*
maturity value. . In determining whether this limitation is exceeded at any time
by any one person, there must be taken into accouht the aggregate present in-r
terest of that person at such time in the maturity value of all savings bonds
issued during any f calendar "year including; but not lirriited to, (a) the entire
maturity value of (1) bonds registered in the name of that person and (2) those
registered in his name with another namM as coowner; as well as (b) the extent
of his present interest in'(3) thpse held for" his benefit by a fiduciary and (4)
those in which a present intercist has been aicquired by him on the death of another
or on the happening of any other contingency. • Bonds of which the person is merely
the'designated beneficiary in case, of the death of the owner," or bonds which are
held by him in a fiduciary capacity only, or those in the income arid principal
of which he has only a future intierest need not be included. If any person at
any time acquires a, present interest in savings bonds issued" during any 1
calendar year in an amount exceeding $10,000,/niaturity value, he should iminediT
ately;'surrender an amouni: eiquar to the excess, which will be redeenied at the
redeinption value current on the date the. excess was acquired.^ • ' .
•
" IV. LOST, STOLEN, OR DESTROYED BbNDS
"
r. The Treasury Department, Division.of Loans and Currency, Washington,
D . C , should be notified immediately of the lossj theft, or destruction .of any
savings bonds, reference being madd.to thie denomination and serial number of
the bond, and the name and address of the registered ownet. The Treasury Department should likewise be notified of the recovery;.of any bond previously
reported to be lost, stolen, or destroyed: - •'
2, Duplicates may be issued or payment-made upon proof of the loss,.theft.
Or destruction of savings bonds. Relief will'be granted'in such cases only in
accordance with the provisions of applicable;,statutes, and will be governed in
general by the regulations contained in Department Circular .No.'300, as amended.
Application for relief should be made on form P. Dr 1048.
^ .
•'•'U
••"• ••'[.:
••• •
'Vy' SAFEKEEPINjG^'EAGILITIES';
i :•.•;•'•'
''i
\
• •••: ^ •••.•.;. •::^ '-•: •.'
: 1. Any savings bond will be held in safekeeping without,chajcge'joy the Secretary
of the Treasury; if thet-purchaser,so desires,^and in such connection the facilities of
the Federal..Reseiwe banks as.fiscal.agents of^ii® ©i^ited'Stat^
Postmasters will not act as safekeeping agents. The purchaser may arrange:for
safekeeping at the tim.e he purchases his bond or. subsequently, and postmasters,
if requested, will furnish owners with appropriate,applicfii,tion blanks and envelopes-to be used in forwarding bpnjds, for .safekeeping: The. owner should have the
envelope registered, at his expense,.and the.f^^^^
at his risk:. ','
2. Upon receipt of "the .savings bond the. Federal Reserve bank will place it in
safekeeping and issue a receipt which willbe mailed to the owner at the addressgiven in the application. The Federal Reserye bank will at any .time deliver the
bond to the owner or person entitled to possession thereof upon his applicationand upon such identification as the bank may require. ,-. '
1 Any 1 person may hold lip to $10,000, maturity valufe, of savings bonds issued during any 1 calendar yeaa*and up to an additional $10,000, maturity value, issued in each succeeding calendar year (Jan. I t o Dec..3%
so long as these bonds are offered for sale.
REPORT- OF THE SECRETARY OF THE TREASURY
245
VI; GENERAL'iPAYMENT PROVISIONS'^^
1. Savings bonds will be payable at or after matiirity at their full value., or,
.at the option of the owner, will be redeemed prior to maturity (but not within 60
'days-after the issue date) at the appropriate redemption value as.shown,on the
face of eiach bond: ' Iri order to secure.payment the owner, should present and
-surrender the bond to the Treasury Department, Division of Loans and Currency,
Washington, D. C.,- direct or through any Federal Reserve bank, with the request
for: payment appearing on the back of the bond properly executed in accordance
with the succeeding paragraphs. Such presentation will be at the expense and
Tiskof the;,owner arid/ for his protection, the bond should-be forwarded by registered mail if not. presented in .person.
2. The request for payment must be sig.ned in ink or indeUble pencil by the
person in whose name the savings bond is inscribed or by the person entitled to
receive payment under the provisions hereof. No request signed in behalf of the
•owner by an agent or a person acting under a power of attorney will be recognized
by the-Treasury bepartriient. If the name of the-owner or "person^ entitled to
receive payment, as it appears in the iriscriptibh, hais been changed by marriagCi
-or in any other* legal manner; the signature; to the-request for payment should
,show both riames and the manner in which the'change was made, as, for example,
•"Miss Mary T. Jones,'ribw by marriage Mrs. Mary T. Smith." In the case of a
•charige of name through divorce or by order of court, th^ request must be supported by a certified copy of the'divorce decree or order of court.
3. The request for payirient must be signed in the presence of, arid be certified
by, one of the* following-officers:
(a) Any United States postmaster; acting postmaster,' or irispector in charge of
:a post office, or—
.«
:
(1)" At any post office of the first class (mairi office)/ the assistant postmaster,
the postal cashier, superintendent of money orders, money order cashier, assistant
.cashier, bookkeeper; o r foreman; •
i
••,..':..
(2) At any post office of the' second or third class-the assistant postrriaster or^
if there is none, the clerk temporarily in charge of the office;
(3) At a.ny classified branch or'station the superinterident, assistant superinteriderit, assistant cashier, bookkeeper, foremari, clerk in charge, or employee temporarily in charge. • -. ,
•
If any of the above designated post,office officials other than a postmaster,
.acting postiriaster, or-inspector in charge of a,n office certifies to a request for payment, he should certify in the iiarrie of the postmaster, acting postniaster,' or inspector in charge, followed by his own signature and official title, as, for example,
*'John Doe, postmaster, by Richard Roe, postal cashier." In the case of a clerk
in charge of an officej branch, or station, the official title should be followed by the
name of such office, brarich, or station, as, for example, "Johri Doe, postmaster,
by Riishard Roe,-clerk in charge^ Main Street Station.'' The certification of any
post office official must be authenticated by a legible iriiprint of a dating stamp of
his post office.
. ^
(b) Any executive pfficer pf an' incorporated bank pr trust company, whose
.signature must be a^u^theriticatfed by a legible impression of the corporate seal of
the bank or trust company. .^
. ';
' •
' '.
(c)Ariy oflScei- a,uthorized generally to Mtness assignments of Urilted States
•registered bonds (see par. 33-35, Department Circular No. 300, as amended).
4. No person authorized to certify requests for payment may certify a request
f pr payrnent pf a. bond of,,which heis the owner,, or in which he has an interest,
.either in i£is,pwn righl of in a^^^
' . ... ' '.
5. Certifying" officers should require positive identificatiqh. of the person executing the, request for. payment as tlie person whose naime appears on .tlie face of the
bond, or the p,e.rspn entitled tp request paj^ment under the provisiohs of these
regulations, and willbe.held fully responsible t
.
,
y i l . SPECIAL .PAY^^^^
1. A savings bond in a, denomination other.than $25 may be redeemed in part
:at the* appropriate redemption value corfesppriding to any authorized denomination or denominations, upon pfesehtation and surrendef of the bond in accordance
with the provisions of section VI hereof; except that bef orethe request for payrrieri't
is executed the first seriterice of the request should be amended (with peri and ink
or typewriter) to read as follows:.''I am the registered owner of the within savings
bond, and hereby make request for the paynient thereof to the extent of the
1 Amended, see p. 250.
246
REPORT OF THE SECRETARY OF THE TREASURY
present redemption value of $
maturity value." Upon payment of a
savings bond in part the remainder will be reissued, subject to the provisions of
section XVI hereof.
2. Notwithstanding any other provisions of this or any other circular, a savings
bond may be pledged by the registered owner in lieu of surety under the provisions
of Department Circular No. 154, amended; Provided that the bond approving officer
is the Secretary of the Treasury. In such cases an irrevocable power of attorney
shall be executed authorizing the Secretary to request payment, and payment of
the bond will, if it becomes necess -y, be .made upon such request, at. the then
appropriate redemption value. No pledge to a borid approving officer other than
the Secretary of the Treasury will be permitted. In no other case are savings
bonds suitable for use as collateral, nor will a power of attorney to request payment be recognized in any othef case.
'
VIII.
MINORS
1. If a savings bond is registered in the name of a minor for whose estate a
guardian or other legal representative has been appointed by a court of competent
jurisdiction or is otherwise legally qualified, and if the Treasury Department has
notice of such appointment or qualification, payment will be made only to such
guardian, or other.legal representative. In this case the request for payment
appearing on the back of the bond should be signed by the guardian or other
representative in his representative capacity, as, for example, **John A. Jones,
guardian of the estate of Henry W. Smith, minor", and must be supported by
proof of his appointment and qualification, which may be in the form of a
certificate from the proper court, or a certified copy of the order of court appointing
the guardian or other representative. The certificate, or certified copy, must be
under the seal of the court and should be dated not more than one year prior to
the presentation of the bond..
2. If the Treasury Department has no notice that a guardian or other legal
representative of the estate of a minor owner of a savings bond has been appointed
or is otherwise legally qualified, payment will be made direct.to such minor
owner, provided such minor is, at the time payment is requested, of sufficient
competency and understanding to sign his name to the request and to comprehend
the nature thereof. In general, the fact that the request for payment has been
signed by the minor and duly certified in accordance with section VI hereof will
be accepted as sufficient proof of such competency and understanding. If the
Treasury Department is properly advised that such minor owner is not of sufficient competency and understanding to execute the request for payment, payment
will be made to either parent of the minor with whom he resides, or in the event
that such minor resides with neither parent, then to the person with whom he does
reside. The parent or other person should sign the request for payment in his
own name, in behalf of the minor, as, for example, "Mary J. Jones, on behalf of
John C. Jones", and a certificate in substantially the following form:
"I certify that I am the
of John C. Jones and the
(State relationship)
person with whom he resides. He is
years of age and is not of sufficient
competency and understanding to sign this request."
must be typed or written on the back of the bond and signed by the person
requesting payment.
IX. DISABILITY
OF OWNERS
1. If the owner of a savings bond has been legally declared to be incompetent
to manage his affairs and the Treasury Department has notice that a conservator
or other legally constituted representative of his estate has been appointed by a
court of competent jurisdiction, payment will be made only to such conservator or
other legal representative. In this case the request for payment should be signed:
"Thomas S. Gray, conservator (guardian or committee as the case may be)
of the estate of Benjamin W. Smith, an iricompetent", and must be supported
by proof of his appointment and qualification, which may be in the form of a
certificate from the proper court or a certified copy of the order of the court
appointing such conservator or other legal representative. The certificate, or
certified copy, should be under the seal of the court and dated not more than one
year prior to the date of the presentation of the savings bond for payment.
2. In any case where the owner of a savings bond has been judicially declared
incompetent, or his incompetency, in the opinion of the Secretary of the Treasury,
is otherwise established and no guardian or other legal representative of his estate
has been appointed or is otherwise legally qualified, and the entire gross value of
REPORT OF THE SECRETARY OF THE TREASURY
247
his personal estate does not exceed $500, payment will be made to a member of his
family standing in the position of voluntary guardian, upon presentation of
proof satisfactory to the Secretary of the Treasury that the proceeds of the bonds
are required, 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.
Form P. D. 1461, copies of which may be obtained from the Treasury Department,
Division pf Loans and Currency, Washington,. D. C , or any Federal Reserve
bank, may be used in making application. The request for payment should not
be executed until the application has been approved and instructions have been
given by the Treasury Department.
X. COOWNERS
1. A savings bond registered in the names of two persons in the alternative,
as, for exainple, "Mr. John A. Jones or Mrs. Mary C. Jones", will be paid to
either coowner upon request duly executed by him, without requiring the signature
of the, other person named on the bond; and upon such pa;yment to either cob wrier
the other person shall cease to have any interest in the bond., Upon proof of
death of one coowner and of the subsequent death of the other coowner, the
savings bond will be paid or reissued as though the survivor had been the sole
owner.
XI. BENEFICIARIES
1. A savings bond registered in the form "Mr. Henry W. Ash, payable on death
to Mr. John C. Black" will be payable to the registered owner, until the Treasury
Department has received notice of his death, upon the execution by him alone of
the request for payment, as if the beneficiary were not named on the savings bond.
If the beneficiary should predecease the registered owner the savings bond will be
paid as though such beneficial registration had not been made.
2. A savings bond registered in the name of one person payable on death to a
designated beneficiary may not be reissued during the life of such beneficiary so as
to eliminate his name. If such beneficiary should predecease the registered owner,
the bond may, upon appropriate request by the registered owner, and proof of the
death of the beneficiary, be reissued in the name of the registered owner, payable
on death to a new beneficiary. A bond registered in the name of one natural person may, upon appropriate request by such person, be reissued in his name, payable on death to a single designated beneficiary.
3. Upon proof of the death of the registered owner and proof of the survivorship
of the beneficiary, even though the beneficiary should thereafter die, the savings
bond will be paid or reissued as though the beneficiary had been the registered
owner.
XII. FIDUCIARIES
1. A savings bond registered in the name of a fiduciary will be paid to such fiduciary without proof of his authority upon presentation of the savings bond with
the request for payment duly signed by him and certified in accordance with section
VI hereof; provided, that a request for payment before maturity executed on behalf
of a corporate fiduciary must be authorized by a resolution of the governing body of
the corporation or by a standing bylaw, a certified copy of which mustbe filed with
the Treasury Department. The request for payment should be signed by the
fiduciary in exactly.tjie saine manner as his name and designation as fiduciary
appear on the face of the savings bond.
2. A savings bond registered in the name of a fiduciary who is no longer acting
as such will be paid to, or reissued in the name of, a succeeding fiduciary, upon
appropriate request and satisfactory proof of his incumbency.
3. A savings bond registered in the titles, without the names, of trustees of an
unincorporated lodge, church, society, or similar institution, will be paid to the
trustees of such institution for the time being, upon appropriate request by them
as such trustees, and satisfactory proof of their incumbency.
4. A savings bond held by a fiduciary under a trust that has terminated will be
paid, or reissued, in authorized denominations only, to the persons beneficially
entitled to the extent of their respective interests upon the request of the fiduciary
and his certification that the persons to whom payment or reissue is requested are
entitled thereto and have agreed to such reissue; provided, that if there is no fiduciary acting and no other person qualified to make distribution of the trust fund,
such payment or reissue will be made upon the request of the persons beneficially
entitled and upon proof of the facts.
248
REPORT OF THE SECRETARY OF THE TREASURY
5. A savings bond 'registered in the name of a'legal guardian bf a rriinor or incpmpetent will be reissued in the name pf the ward upon the request of the guardian,' or
will be paid to, or reissued in the name of, the ward upon his request; supported ineach case by satisfactory proof that the minor has attained'his majority or that
the incompetent has been restored to'competency.
XIII. CORPORATIONS, ASSOCIATIONS, PARTNERSHIPS, ETC.
1. A savings bond registered in the name of a corporation, unincorporated association, or joint-stock company will be paid upon a request for payment signed by
a duly authorized officer of such organization. The signature to the request should
be in the form, "The
i_________i____ Company, by John Jones,
President." The fact that the request for payment is signed and duly certified in
accordance with section VI hereof may be accepted as sufficient proof of the officer's
authority.
2. A savings bond registered in the title, without thenariie, of an officer of a
State, county, city, town, or other public corporation will be paid upon a request for
paymerit signed by the designated officer, supported by satisfactory proof of his
incuiribency.
3. A savings bond registered in the riame of a partnership will be paid upon a
request for payment signed by any general partner. The signature to the request
should be in the form "Smith and Jones, a partnership, by John Jones, a general
partner." The fact that the request for payment is signed and duly certified in
accordance with section' VI hereof may be accepted as sUfficierit proof that the
person signing the request is a general partner.
4. A savings bond registered in the name of a corporatiori, unincorporated
asspciation, or joint-stock company, which has been succeeded by another corporation, unincorporated assbciatiori, or joint-stock cprnpariy, as the result of
merger or consolidation, will be paid to, or reissued in the riariie of; the succeeding
corporation, unincorporated associaltiori, or joint-stock company, upon proper
request and satisfactory proof of successorship. .This applies only to legal succession and not to a general assignmerit by one corporation to' ariother.
XIV. DECEASED OWNERS
1. With administration.—^If the'owner of a savings bond dies and his estate is
administered in a court of competent jurisdiction, paynient will be iriade to the duly
appointed representative of the estate. The request for payment, should, be
signed in the form "John A. Jpnes, executor under the will (administrator of the
estate) of Henry W. Smith, deceased", arid must be supported by a certificate
under the seal of the court appointing such representative, dated not more than
6 months prior to the presentatiori of the savings bond for payment, showing the
appointment and qualification of such representative and stating that the appointment is still in force; or, in the absence of such a certificate, by a duly certified
copy of the representative's letter of appointment, the certification of which must
be dated not niore than 6 months prior to the presentatiori of the bond for payment, and iriust state that the appointment is still in force. Reissue of a sayings
bond registered in the name of a deceased owner will, be made in the names of
the heirs or legatees entitled thereto, to the extent of their respective interests, in
authorized denominations only and subject to the provisions of section XVI
hereof, upon the request of the representative and his certification that the heirs
or legatees in whose name reissue is requested are entitled thereto and have agreed
to such reissue (use form P. D. 1455); provided, that if the respreseritative is himself one of the heirs or legatees entitled to the, savings.bond, or to ari interest
therein, and desires reissue in his own riame, a special order of the court authorizing such reissue must be submitted.
^
.
,, \
. 2.. Without administration.—(a) If the owner of a savings bond dies and no
legal representative of his estate is to be appointed and it is established to the
satisfaction of the Secretary of the Treasury, eithef that the gross value of the
personal estate does not exceed $500, or that administration of the estate is not
required in the State of the decedent's domicile, payment, or reissue in authorized
denominations only and subject to the provisions of section XVI hereof, of the
sayings bond will be made to the persons entitled to such savings bond, to the
extent of their respective interests, without requiring administration of the estate.
Affidavits will be required of all persons entitled to any share in the estate setting
forth the facts in detail, and requesting and agreeing to the payment or reissue in
question, supported by proof that the debts of the decedent and of his estate have
REPORT OF THE SECRETARY OF THE TREASURY
249
been paid; or provided for, affidavits by two disinterested persons having personal
knowledge of the decedent arid his family,, and a.death certificate or other proof
pf-the death of the owner (use form L. & C. 285, copies.of which may be procured
from the Treasury Departrrierit,. Division of Lpans and Currency, W'ashington,
D. C , or from any Federal Reserve bank). If the gross value of the personal estate
exceeds $500 the Secretary of the Treasury may further require an affidavit of a
3ertificate from'. a practicing attorney or judicial officer of the State of the decedent's domicile showing that administration of the estate is not required in
such State and referring specifically to the statutes or the decisions of the courts
of such State under which exemption from administration is claimed, or showing
that it is a general and well recognized practice in that State to settle such estates
without administration;. •••'.,
(b) No payment or reissue. without administration will be permitted in a case
where any of the persons entitled are minors or under disability, except to them or
in their names or upon compliance with the provisions of sections VIII and IX
hereof governing the payment of savings bonds in the names of such persons.
; '-
XV. C R E D I T O R S ' RIGHTS
1. Payment of a savings bond will be made in accordance with a judgment or
decree of a court of com.petent jurisdiction, or proceedings pursuant to such
judgment or decree, except in cases where the action is instituted for the purpose
of giving effect to an attempted transfer by the owner contrary tp-section II hereof.
In appropriate cases the Treasury Department will require proof that the court
acting had jurisdiction oyer the parties and subject matter, and proceeded in
due course of its jurisdiction, and that the judgment or decree is final and conclusive, that i t has fully and effectually .transferred the title of the owner, and
that it is not open to attack in any jurisdiction whatever. For this purpose duly
authenticated copies of the complaint, order of service, return of service, answer,
or other pleading, the final judgment or order of the court and any further proceedings thereunder, must be furnished, together with a certificate, under seal,
from the clerk of-the court showing that no appeal, motion for new trial, or other
proceeding which may result in modifying the judgnient has been taken, made,
or applied for; that the tinae for such action has expii^ed"(or if any such proceedings have been had they have been, terminated), and that the judgment is in full
force and effect and; has become final under the law^ of the jurisdiction. The
Secretary of the Treasury in any case may' require such further information,
documents, and security as he deeins necessary.
2. Payment (but not reissue) of a savings bond will be made to a receiver or
trustee in bankruptcy of the registered owner upon request for payment duly
executed by sucbv receiver or trustee and supported by satisfactory proof of his
appointment and qualification.
XVI. REISSUE AND DENOMINATIONAL EXCHANGE
1.. Reissue of a savings bond in.a different form of registration will be made only
in the following insta,nces:
(a) To correct an.established error in the original issue;
(b) To show a change in the name of the owner whether by marriage or in any
other legal manner; •
(c) As specifically provided in this circular.
, .
Reissues pursuant to (b) and (c) above will be made only at the Treasury
Department, Division of Loans and Currency, Washington,- D. C , and requests
therefor should be iriade on appropriate forms, .copies, pf. which may be obtained
from that Division or from any Federal Reserve bank. AU reissues will be made
subject to the limitations expressed in section III hereof.
2. Exchange ,as between authorized denominations of savings bonds will npt
be permitted except in cases of partial redemption or as necessarily incident to
.authorized cases of reissue.
3. In all cases of reissue the savings bonds issued will bear the'same issue dates
as the savings bonds surrendered, will mature,.on the same dates, and will be
issued in the largest available authorized denominations.
XVII. FURTHER PROVISIONS .
1. These regulations are prescribed by the Secretary of the Treasury as gpverning United States savings bonds issued under the authority of the Second Liberty
Bond Act, approved Septeniber 24, 1917, as amended, and the prbvisions of
250
REPORT OF THE SECRETARY OF THE TREASURY
Treasury Department I Circular No. 300, as amended, have no application to
such savings bonds exc.ept as hereinbefore specifically provided.
2.' The Secretary of the Treasui'y* may at any tiirie; or froiri time to time, prescribe supplemental or amendatory rules and regulations governing United States
savings bonds.
HENRY MORGENTHAU,
Jr.,
Secretary of the Treasury,
Exhibit 16
First amendment, April 23 1937, to Department Circular No. 530, Revised,.
prescribing r*\egulations governing United States savings bonds
TREASURY
DEPARTMENT,
Washington, April 23, 1937. '
To Owners of United States Savings Bonds, and Others Concerned:
1. Section VI of Department Circular No. 530j Revised, dated December 16,
1936, is hereby amended to read as follows:
VI. G E N E R A L P A Y M E N T PROVISIONS
" 1 . Sa,vings bonds will be payable at or after maturity at their full value, or^ at
the option of the owner J will be redeemed prior to maturity (but not within 60 days
after the issue date) atj the appropriate redemption value as shown on the face of
each bond. In order ijo seizure payment the owner should present and surrender
the bond as hereinafter provided (see par. 6, 7, and 8 of this section), with the request for payment appearing on the back of the bond properly executed in accordance .with .the. .succeeding paragraphs.
"2. The request for payment must be signed in ink or indelible pencil by the
person in whose name the savings bond is inscribed or by the person entitled to
receive payment under the provisions hereof. No request signed in behalf of the
owner by an agent or a person acting under a power of attorney will be recognized
by the Treasury Department. If the name of the owner or person entitled to
receive payment, as itl appears in the inscription, has been changed by marriage,
or in any Other legal manner, the signature to the request for payment should
show both names and the. manner in, which the change, was made,.as, for,example,
'Miss Mary T. Jones, |now by marriage Mrs. Mary T. Smith.' In the ca,se.of a
change of name through divorce or by order of court, the request must be supported
by a certified copy of the divorce decree or order of court.
"3. The request for Ipayment must be signed in the presence of, and be certified
by, one of the following officers:
"(a) Any United Siates postmaster, acting postmaster, or inspector in charge
of a post office, or— |
•
"(1) At any post ofpce of the first class (main office); the assistant postmaster,
the postal cashier, superintendent of money orders, money order cashier, assistant
cashier, bookkeeper, or foreinan;
"(2) At any post office of the second or third class the assistant postmaster or,
if there is none, the clerk temporarily in charge of the office;
"(3) At any classified branch or station the superintendent, assistant superintendent, assistant cashier, bopkkeeper, foreman, clerk in charge, or employee
temporarily in charge.
If any of the above designated post office officials other than a postmaster, acting
postmaster, or inspector in charge of an office certifies to a request for payment, he
should certify in the name of the postmaster, acting postmaster, or inspector in
charge, followed by his own signature and official title, as, for example, 'John Doe,
postmaster, by Richard Roe, postal cashier.* In the case of a clerk in charge of
an office, branch, or station, the official title should be followed by the name of
such office, branch, or station, as, for example, 'John Doe, postmaster, by Richard
Roe, clerk in charge. Main Street Station.' The certification of any post office
official must be authenticated by a legible imprint of a dating stamp of his post
office.
"(5) Any executive officer of an incorporated bank or trust company, whose
signature must be authenticated by a legible impression of the corporate seal of
the bank or trust company.
"(c) Any officer authorized generally to witness assignments of United States
registered bonds (see par. 33-35, Department Circular No. 300, as amended).
REPORT OF THE SECRETARY OF THE TREASURY
251
"4. No person authorized to certify requests for payment may certify a request
for payment.of a bond of which he is the owner, or in which he has an interest,
either in his own right or in any representative capacity.
"5. Certifying officers should require positive identification of the person executing the request for payment as the person whose name appears on the face of
the bond, or the person entitled to request payment under the provisions of these
regulations, and will be held fully responsible therefor.
"6. If a savings bond is registered in the name of a natural person in his own
right (see sec. I, par. 2 (a)), or in the name of an incorporated or unincorporated
body in its own right (see sec. I, par. 2 (c)), and payment is to be made to the registered owner, the bond, after the request for payment has been duly executed as
above provided, should be presented and surrendered to a Federal Reserve bank,
or to the Treasurer of the IJnited States, Washington, D. C.
. '
"7. If a savings bond is registered,iri the name of a fiduciary (see sec. I, par.
2 (b)), or if payment is to be iriade to any person other than the registered owner,
the bond, after the request for payment has been duly executed as above provided,
should be presented and surrendered to the Treasury Department, Division of
Loans and Currency, Washington, D. C , either direct or through any Federal
Reserve bank.
"8. In all cases, presentation will be at the expense and risk of the owner, and,
for his protection, the bonds should be forwarded by registered mail if not presented in person. Payment will be made by issuance of a check drawn to the
order of the owner or other person entitled to payment and mailed to him at the
address given in his request for payment."
2. The Secretary of the Treasury reserves the right to withdraw or amend this
amendment at any time.
HENRY MORGENTHAU,
Jr.,
Secretary of the Treasury.
Adjusted service bonds
Exhibit 17
Department Circular. No. 560, Revised, October 24yl'936, prescribing regulations
governing adjusted service bonds of 1945
TREASURY DEPARTMENT,
Washington, October 24, 1936,
To Owners of Adjusted Service Bonds, and Others Concerned;
Department Circular No. 560, dated June 6, 1936, as supplemented and
amended, is hereby revised to read as follows:
Section 4 of the Adjusted Compensation Payment Act, 1936, as amended,
reads as follows:'
"The amount certified pursuant to section 1 of this act shall be paid to the
veteran or his estate on or after June 15, 1936, by the Secretary of the Treasury
by the issuance of bonds of the United States, registered in the name of the
veteran only, in denominations of $50 having a total face value up to the highest
multiple of $50 in the amount certified as due the veteran, and the difference
between the amount certified as due the veteran and the face amount of the bonds
so issued shall be paid to the veteran or his estate by the Secretary of the Treasury
out of the fund created by section 505 of the World War Adjusted Compensation
Act, as amended. The bonds shall be dated June 15, 1936, and shall mature on
June 15, 1945, but shall be redeemable at the option of the veteran or his estate
at any time, at such places, including post offices, as the Secretary of the Treasury
may designate. Such bonds shall be issued under the authority and subject to
the provisions of the Second Liberty Bond Act, as amended, and shall not be
transferable, assignable, subject to attachment, levy, or seizure under any legal
or equitable process and shall be payable only to the veteran or, in case of death
or incompetence of the veteran, to the. representative of his estate. Interest on
each bond issued hereunder shall accrue at the rate of 3 per centum per annum
from June 15, 1936, to date of maturity or payment of the principal of the bond,
whichever is earlier, and will be paid with such principal: Provided, however. That
no interest wUl be paid on any bond redeemed prior to June 15, 1937. In cases
of deceased or incompetent veterans, the payments provided by this paragraph,
whether of the amount certified, by issuance of bonds and by checks payable out
of the fund created by section 505 of the World War Adjusted. Compensation
252
REPORT OF . THE ; SECRETARY OF THE TREASURY
Act, as amended, pr^ whether of such bpnds pii redemption thereof;: shall'be made
to the person or persbns deteririined by the Secretary^pf the Treai,sury to be lawfully
entitled thereto, without the.necessity.pfithe.a;ppoint,m6nt byj judicial proeeedirigsor otherwise of a legal repfe.seritB,tive of. the estateiof any,veteran pr':o.f any other
persons, ;or of compliance with. State lawin respect of .the administration of estates..
Such checks'may b^ endorsed on behalf ofthe Secretary.of .the-Treasury "in the
name of the veteran, if that is d.etermi.ned.'by the'.Secretary tp be ^appropriate for
the .effectuation hereof; All. determinatipns by the Secretary ;ipf .the Treasury
under this paragraph shall be fina^l and-cpnclusivej and. neither any other>,official
of the United States nor, except in the \case of, prior-jvudiciai :determination,;.any
-State or Federal court,-ishallhavQ jurisdictipntpf re view any-such determination.
.TheproyisiorisiOf this paragraph shallbej.carried-out,subject to regulations of-^^^^^
Secretary of the Treasury to be issuedfroin; tinie t o tinie to effectuate tlie .purposes;
of this act. •^-•-: r r-;•..,.;•. ,. ,
•'At the .request of the Secretary pf the.Treasury,the Postm.aster General,,under
such regulations- as he- may prescribe,"; shall ..designate ,postmasters and 'other
employees of the :Post Office Pepartment .and of the Postal^.Service to.^perform,
without extra:cComp,erisation;such fiscalTagency-iServices-as may be de.sirable and
practicable in connection with the redemption and paynient of the bonds issued!
under .this section; and the Postmaster General may require each such employee
to ifurnish such bond as he may deterraine for the faithful performance of such
fiscal-agency duties. ' .
•
"The-Secretary of the Treasury.is authorized to advance, from time to time-,.
to the Postmaster General, from the appropriation contained: in the Supplg^mental •Appropriation Act, fiscal; year 1^36, approved.'February 11, 1936, for
'Administrative expenses. Adjusted Compensation Paynient Act, 1936, Treasury
Department, 1936 and 1937', ,such sums as are certified by the Postmaster General
tp be required for .the-;expenses of the Post Office Department in connection with
the handling of the bonds issued hereunder. Such bonds, when received by postmasters for purposes of redemption and payment, shall be handled by the post^
masters under such special regulations as may be!promulgated by the Postmaster
General. They shall be transmitted between post offices or from any post office
to the Treasury Department, or fiscal.agent thereof, without advance payment
of any required postage. The Secretary of the Treasury shall reimburse the
: Postmaster ..General, from the aforesaid appropriation contained in said Supplementai Appropriation Act,: for such postage and registry fees as may be required
in connection with such transmittal. Whenever it is proved to the Secretary of
the Treasury, by clear and satisfactory evidence, that any" such bond is lost,,
stolen, or destroyed" while 'being so transmitted, the Secretary of the Treasury
may, in accordance with such rules and regoilations as he may prescribe, issue a;
duplicate thereof.without requiring the .furnishing of an indemnity bond."
The following regulations are hereby prescribed to'effectuate the provisions of
the .foregoing statute, and to govern bonds .of the United States designated
"Adjusted Service Bonds of 1945", issued to veterans in payment of amounts-.due on adjusted service certifi,cates:
PAYMENT TO A REGISTERED OWN.ER ^
.
'
1. In order for a registered owner to obtain payment of a bond, the bond must
be presented at a United States post office, or;transmitted to the Treasurer of theUnited States, Washingtori,' D. C., in either case with the request for payment on*
the back of the bond properly executed;
- , ••
2. Postmasters at a number of post offices ('hereinafter referred to as paying"
offices) throughout the country have been authorized to receive bonds presented
for payment and'to issue checks in paynient therefor. All other postmastersare authorized to receive bonds.presented for payment, and forward them, at the
risk and expense of the United States, to a paying office. The Treasurer of the
United States is authorized to issue checks in payment of bonds transmitted tohim. In the Philippine Inlands bonds may be presented and checks will be issued
at the treasury of the Philippine Islands.
3. / / a bond is to be preslented at a paying office, or at any other post office for transmittal to a paying office, the request for payment must be signed by the registered
owner in the presence of and certified by the postm'aster or other authorized post officeofficial at such office, who will receive the bond and issue a receipt therefor.
4. If a bond is to be tijansmitted to the Treasurer of the United States, or tothe treasury of the Philippine Islands, for payment, the request for payment
. 1 Amended, see P.A256.
REPORT . OF. THE , SECRETARY ^OF, THE , TREASURY
253
must.be signed by.the registered pwner in thecpres.ence of .and certified by one
of the officers authorized ..in pafagraph 12., In a foreign'cpun.try, the ;i:eq,uest for
payment should^ be executed "as provided "in paragraph 12 (fj and the borid. for.wardedtp the Treasurer of the United States..
,
,
5. Paymfent in all cases will be rnade by check drawn to the.order of-the registered owner, and mailed,to him a t the address sta;ted in his request.for payment.
D I S P O S I T I O N A N D P A Y M E N T I N CASE O F D E A T H OR I N C O M P E T E N C E , OR D U R I N G T H E
• ''
"" '
M I N O R I T Y , OF O W N E R
'
' '
'
6. In cases of death or incompetence, or during the minority, of a bond owner,,
delivery, or payment if desired, of a bond will be made as hereinafter provided.
The provisions pf Department Circular 300, as amended, will, so far a.s applicable,,
apply to all such Cases, all of which should be presented "directly to the Treasury
Department, Division of Loans and Currency, Washington, D. C.
7.- With administration.—When a.legal representative of the estate of a deceased
•bond owner has been duly appointed, delivery or payment of a bond will be made
only to him. Unless' satisfactory' evidence of qualification of the representativeis already on file with the Treasury Department, an applixjation for delivery or a.
request for payment must be accompanied by a certificate (which may be a
certified copy of the represeritative's letter of • appointriierit) under seal of the
court appointing such represeritative, dated not-more thari 6 months before the
application for delivery or the request for payment is submitted, showing the
appointment and; qualification of such representative arid stating that the appointment is still in force. When payment is desired, the request for payment on the
back of the bond should be signed "Estate of A, deceased, by B, executor (administrator)", must state the address of the representative, and must be signed in the
presence of and certified by one of the officers authorized iri paragraph 12. The
bond must then be transmitted to the Treasury Department, Divisiori of Loans
and Currency, Washington, D.;.C.
'
'
'^
.'
. 8. Legal guardianship.—When the Treasury Department has notice that a legal!
representative of the estate of an incompetent or ininor bond owner has been duly
appointed, delivery or payment of a bond will be made only to such representative..
. Unless satisfactory evidence of qualificatiori of the representative is already on
file with the Treasury Department, and application for delivery of a rquest for
payment must be accompanied by a certificate (which may be a certified copy of
the court order appointing such representative) under seal of the court dated not
more than 1 year before the application for delivery or the request for payment is;.
subriiitted, showing the appointment arid qualification of such representative and
stating that the appointment is still in force. When payment is desired the request
for payment on the back 6f the bond should be signed "A, incompetent (minor),,
by B, guardian (conservator or comriiittee)", must state the address of the representative, and must be signed in the presence of and certified by one of the officers-,
authorized in paragraph 12. The bond'must then be transmitted to the Treasury
Department, Division of Loans and Currericy, Washington, D. C.
9. Without administration or legal guardianship.—When no legal representative
of the estate of a deceased, incompetent, or minor bond owner has been or is to be
appointed and it is established to the satisfaction of the Secretary pf the Treasury:
(1) In the case of a deceased owner either that the value of the gross personal'
estate, including adjusted service bonds, does riot exceed $2,000 or that administration of the estate is not required in the State .of the decedent's doriiicile; or
(2) in the case bf an incompetent or minor bond owner that the value of the grosspersonal estate, including adjusted service bonds, does not exceed $2,000; delivery
or payment of a bond owried by such decedent, or incompetent, or minor will be
made to the person determined by the Secretary of the Treasury to be lawfully
entitled thereto, except that if such person is an incompetent or a' minor, payment
of a bond, will be made only upon a showing that, such payment is necessary for
the support of the incompetent or the minor or their respective dependents. All
such deliveries and payments will be made in accordance with the provisions of
Departmerit Circular 300, as amended, insofar as applicable, such provisions tobe construed in a manner consistent with the provisions of the Adjusted Compensation Payment Act, 1936, as amended, and the provisions of these regulations.
Special forms for use in such cases, forms P. D. 1049 and 1050 in the case of adecedent, form P. D. 1051 in the case of a minor, and form P. D. 1052 in the case
of an incompetent, have been prepared and must be corripleted and executed in^
compliance with the accompanying instructions. These forms may be obtainedi
from the Treasury Department, Division of Loans and Currency} Washington^.
16109—38
18
254
REPORT OF THE SECRETARY OF THE TREASURY
D. C. In all such cases instructions should be requested of that Division before an
application for delivery is made or a request for payment is executed or a bond sub^
mitted.
10. Request for payment.—Where directed by the Treasury Department a
request for payment may be executed on form P. D. 1054.
11. Payment in all cases will be made by check drawn to the order of the legal
representative or to the person determined by the Secretary of the Treasury to be
lawfully entitled thereto and mailed to him at the address stated in his request
for payment.
OFFICERS AUTHORIZED TO CERTIFY BEQUESTS FOR PAYMENT.
.
12. The following officers are authorized to witness requests for payment and
certify thereto:
.
(a) Any United States postmaster, acting postinaster, inspector in charge of a
post office, or other post office employee designated by the postmaster under
authority of the Postmaster General, under a legible imprint of a dating stariip of
his post office;
(b) The officer in charge of any home, hospital, or other facility of the Veterans'
Administration, but only for patients and members of such facilities;
(c) Any executive officer of a bank or trust company (or manager of a branch
thereof) incorporated in the United States, its organized Territories or insular
possessions, under the corporate seal of the bank or trust company;
(d) Judges and clerks of "United States courts, under the seal of the court;
United States collectors of customs and internal revenue; commanding officers of
the Army, Navy, Marine Corps, arid Coast Guard of the United States for members of their respective establishments; officials of the Treasury Department who
may be designated from time to time by the Secretary of the Treasury;
(e) In cases where identification of a registered owner is made through fingerprints only, officials at Washington, D. C , of the War and Navy Departments
who may be designatjed from time to time by the Secretary of War or the Secretary
of the Navy;
(/) In a foreign country: United States diplomatic and consular representatives
and attaches, under their respective seals; managers and executive officers of*
foreign branches of bank^s or trust companies incorporated in the United States:
if such an officef is not available, requests for payment may be signed iri the presence of and certified by a notary public 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 attach^, under the seal of his office;
(g) In the Philippine Islands: In addition to the officers designated elsewhere
in this paragraph," provincial and municipal treasurers, and city treasurers in
Manila and Baguio, under their respective seals; Philippine postmasters under
the stamp of their office; and, in Manila, post office inspectors assigned in Manila,
under the seal of the Bureau of Posts: Provided, however, that the requests for
payment witnessed and certified to by these, officials shall be supported by the
fingerprints of the, veterans in the place provided therefor on the back of the
bonds, and that the bonds,be then forwarded to the treasjiry of the Philippine
Islands or to the Treasui'er of the United States fbr payment.
13. No person authorized to certify requests for paynient may certify a request
signed by himself, either in his own right or in any representative capacity.
14. Certifying officers will be held responsible for positive identification of the
person requesting payment as the person whose name appears on the face of the
bond, or the person recognized by the Secretary of the Treasury as entitled to
payment under these regulations, and, if necessary, shall require witnesses to
identify that person. Provision for signatures and addresses of witnesses, and
for fingerprints in exceptional cases, is made on the back of the bond.
15. Special arrangements for execution of a request for payment may be
provided for inmates of an institution, information concerning which may be
obtained from the Treasury Department by the head of the institution.
GENERAL PROVISIONS
16. All signatures must be in ink or indelible pencil. Signatures to a request for
payment made by mark (X) must be witnessed by at least one person in addition
to the certifying officer.
17. No request for payment signed by an agent or person acting under a power
of attorney, in behalf of the registered owner, the representative of his estate,
REPORT OF THE SECRETARY OF THE TREASURY
255
or such person or persons as the Secretary of the Treasury may determine to be
lawfully entitled thereto, will be recognized by the Treasury Department. In
no case will any payment be made other than to the registered owner, or the
representative of his estate, or to such person as the Secretary of the Treasury
may determine to be lawfully entitled thereto.
18. In cases where documents are required to support a request for payment
and two or more bonds are presented at the same time, only one set of documents
will be required.
19. These regulations shall also apjily to the delivery and payment of (1) checks
issued in payment of adjusted service bonds and (2) checks issued for the difference
between the amount certified by the Administrator of Veterans' Affairs as due a
veteran and the face amount of the iDonds issued to him.^
TRANSMII3SI0N OF BONDS ^
20. Any transmission of a bond to the Treasury Department will be at the risk
and expense of the owner. The use of registered mail is suggested.
LOST, STOLEN, OR DESTROYED BONDS
21. In case of the loss, theft, or des'truction of a bond, the Treasury Department,
Division of Loans and Currency, Washington, D. C , should be notified immediately of the serial number of the bond and the name, address, and "A" number
of the registered owner. Upon receipt of such notice full information as to the
requirements for issuance of a daiplicate will be furnished. The Treasury Department should likewise be notified of the recovery, of any bond previously reported
to be lost, stolen, or destroyed. In the Philippine Islands notice of the loss,
theft, or destruction of a bond, dr tlie recovery of a bond previously reported to
bQ lost, stolen, or destroyed, should be given to the treasury of the Philippine
Islands.
22. Except in cases of loss, theft, or destruction of a bond while being.transmitted between post offices or betwecsn a post office and the Treasury Department,
or fiscal agent thereof, relief will be granted only in accordance with the provisions
of sections 3704 and 3705 of the Reviised Statutes (U. S. C , title 31, sees. 737, 738);
applications should be made on form P. D. 1053 and will be governed in general
by the regulations contained in Department Circular 300, as amended.
23. In the case of a bond lost, stolen, or destroyed, while >being transmitted
between post offices or between a jiost office and = the Treasury Department, or
fiscal agent thereof, a duplicate may be issued without requiring a bond of indemnity, as provided in section 4 of the Adjusted Compensation Payment Act,
1936, as amended. Applications should be made on form P. D. 1064, but no
duplicate will be issued until evidence has been received from.the Post Office
Department establishing the fact of loss, theft, or destruction. The Secretary of
the Treasury reserves the right to require a bond of indemnity in any such case,
if he deems it necessary for the protection of .the Government.
TAXATION.
24. In accordance with applicable law, the bonds are exempt, both as tp principal
and interest, from all taxation, excijpt estate, inheritance, or gift taxes, now or
hereafter imposed by the United States, any State, or any of .the possessions of
the United States, or by any local taxing authority.
i.MENDMENTS
25. The Secretary of the Treasury reserves the right at any time, or from time
to time, to revoke or amend these regulations, or to prescribe and issue supplemental or amendatory rules and nsgulations governing adjusted service bonds.
WAYNE C . TAYLOR,
Acting Secretary of the the Treasury,
»Amended, see p. 256.
256
REPORT OF THE SECRETARY OF THE TREASURY
Exhibit 18
First arnendment, December SO,, 1936, M.Dep.artmerit .Circular No.. 560, Revised,
• prescribing regulations .governing;adjusted,service bo^^^^
TREASURY DEPARTMENT,
Washington, December SO, 1936.
To Owners of Adjusted Service Bonds, and Others Concerned:
Department Circular No. 560, Revised, dated October.24,, 1936, is hereby
amended, effective January 16, 1937, by striking out paragraphs-1, 2, 3, 4, 19, and
'20, of the regulations prescribed therein, and inserting in lieu thereof the following:
1. In order for a registered owner to obtain payment of a bond, t h e bond-must
be presented at a United States post office, or transmitted to a Federal Reserve
bank, or to the Treasurer of the .United States, Washington, D. C , in any case
with the request for payment on the back of the bond properly executed as hereinafter provided.
2. Postmasters throughout the-country 'have been authorized to receive bonds
presented for payment, and to forward them, at the risk and expense of the United
States, to a Federal Reserve bank. If a bond is to be presented at a post office,
the request for payment must be signed by the.registered owner in the presence of
and certified by the postmaster or other authorized post office official or employee
at such office, who will receive the bond, issue a receipt therefor, and forward the
bond for payment.
" '
. 3. Federal Reserve banks are.designated as places for the redemption on and
after January 16, 1937, bf bonds, and are authorized to issue checks in payment
for bonds trarismitted to them in accordance with this ai,nd the next preceding
paragraph. If a bond is to be transmitted for payment to a JFederal Reserve
bank directly by the registered owner, of through a banking institution acting as
his agent, the request for payirient must be executed in the preseince of and be
certified by one of the officers authorized in paragraph 12 (c).
4. (a) The Treasurer of the United States is authorized to issue checks in payment of bonds transmitted to him.' If a bond is to be transmitted to the Treasurer
of the United States for payment, the request for payment must be signed by the
registered owner in the presence of and certified by one bf the officers authorized
in paragraph 12.
'
(b) In the Philipp.ine Islands bonds may be presented and checks v^ill be issued
at the treasury of the Philippine Islands. If a bond is to be presented to' the
treasury of the Philippine Islands for payment, the request for payment must be
executed and certified in accordance with the provisions of paragraph 12 (g).
19. These regulations shall also apply to the delivery and payirient of (1) checks
issued in payment of adjusted service bonds,.and (2) checks issued for the di&erence between the amount certified by tlie Adriiinistrator of Veteraris' Affairs as
due the veteran and the face amount of the bonds issued to him; provided, however, that when necessary in order to effect an equitable division of the amount
due, checks for such difference may be divided in the necessary proportions between
adults and minors, or between minors, as persons lawfully entitled thereto.
20. Any transmission of a bond by the owner to the treasury of the Philippine
Islands, or any transmission of a bond by the owner, -either directly, or through a
banking institution acting as agent for the owner, to a Federal Reserve bank or to
the Treasury Department will be at the. risk and expense of the owner. The use
of registered mail is suggested.. " • .
'
STEPHEN B . GIBBONS,
Acting Secretary of the Treasury,
Miiscellaneous
Exhibit 19
Department Circular No. 568, September 15, 1936, prescribing regulations governing
Federal savings and loan associations and Federal credit unions as fiscal agents of
the United States
' ' '
TROEASURY DEPARTMENT,
Washington, September 15, 1936.
1. (a) Section 5 (k) of the Home Owners' Loan Act of 1933, as amended (c.
168, 48 Stat. 643, 646), is as follows:
"(k) When designated for that purpose by the Secretary of the Treasury, any
Federal savings and loan association * * * may be employed as fiscal
REPORT OF THE SECRETARY OF THE TREASURY
257
agent of the Government under such regulations as may be prescribed by said
Secretary and shall perform .all su.ch re.asonable duties as fiscal agent of the Government a,s maty be fequire'd of i t *. * *."
'
(b)' Section 17'of the Federal Credit Union Act,(c;750, 48 Stat. 1216, 1222) is
as follows:
, "Each Federal, credit union prganized,under this act, when requested by the
Secretary of the Treasufy, shall act as fiscal agenib of the United States and sha;ll
perform, such seryices as the Secretary of the Treasury may require in connection
with *. *.. *. ^the lending, .bprrowiag, and repayment of money by the United
States, inciuding'the issue, sale, redeription or repurchase of,bonds, notes. Treasury certificates, of indebtedness, or oth(jr obligations of the United States * * *."
2. All Federal savings and loan ai5SOciations and Federal credit unions, when
designated for .employment as fiscal a,gents of the United States for the purposes
of taking', applications and forwarding remittances for, and making delivery of,
United States savings bonds, shall promptly forward such applications and
remittances, in the form received, to the Federal Reserve bank of the district in
which the association or credit union is located, except that remittances received
in cash should be forwarded in the form of money order or check. Upon receipt
•of such application and remittance, the Federal Reserve bank will, if the application has been duly executed, and subjisct to the collection of any remittance which
.may be in the form of a check or. draft^. promptly forward United States savings
bonds in the desired amount to the saic. association or credit union for the purpose of
delivery to the applicant. Application forms and any other necessary papers and
materials will be furnished by the F'ederal Reserve bank to any association or
•credit" union which may be desigriatsd for such employment; inquiries relating
to the manner of handling applications, the terms'and coriditions of United States
savings bonds, and the forms in which;they riiay be registered may also be made
to, and information obtained frorii, post offices.
3. Federal savings and loan associations, when designated for employment
as fiscal agents of the United States for the purpose of collecting delinquerit
accounts arising out of insurance and loan transactions of the Administrator under
title I of the National Housing Act, and making investigations and rendering
reports respecting the said delinquencies as may be directed from time to time by
the Administrator, shall promptly forward remittances in the form collected to
the Administrator of the Federal Houfdng Administration, except that remittances
Teceived in cash should be forwarded in the form of money order or check.
4. No Federal savings and loan association or Federal credit union which may
liave been designated for any emplo;;^merit riientioned in these regulations shall
perform, or rnake any effort to perform any of the acts included in such employment, or advertise in any irianrier iihat it is authorized to pefform such acts
(1) until it has qualified by the execution of, delivery to, and approval by, the
undersigned, of a bond of indemnity in favor of the United States with satisfactory
surety, or with the pledge of collateral security as provided in Treasury Department Circular No.-154, conditioneduponthe faithful performance of the obligor's
duties as fiscal aigent of the United Stsites,'such bond to be in the principal amount
•of $5,000, provided, however, that the bond, of indemnity furnished by an association designated solely for the employment mentioned in paragraph (3) hereof,
shall be in the principal amount of $]L,000; and (2) until the Federal Home Loan
Bank Board or the Farm Credit Administration, respectively, shall have certified
to the Secretary of the Treasury thai) such association or credit union is in good
standing and is eligible, under the terms and conditions pres'cribed by the Secretary
of the Treasury, to qualify for the performance of the designated acts. The
Federal Home Loan Bank Board and the^Farm Credit Administration, respec"tively, shall keep the Secretary of the; Treasury currently advised of any changes
in the list of aissocmtions and credit unions which areeligible, under the aforesaid
iierriis and conditibns, to qualify for t i e perfprniance of the designated acts.
5. All Of the fiscaL agency employment mentioned herein shall be performed
without compensation, reimbursement for expenses, or allowance of service
'Charges.
6. Nothing herein cpntained shall be construed as preventing such associations
•and credit unipns, if they desire to assume such responsibility, from acting as
.agents of prospective purchasers in making applications to, and obtaining United
.'States savings bonds from, post offices or other designated places of issuance.
WAYNE C. TAYLOR,
Acting Secretary of the Treasury.
258
REPORT OF THE SECRETARY OF THE TREASURY
Exhibit 20
Designation of certain Federal savings and loan associations and Federal credit unions• for employment as fiscal agents under the provisions of the regulations contained
in Department Circular No. 568, promulgated September 15, 1936
Pursuant to and subject to the conditions and limitations imposed by law, and
those, contained in Departmerit Circular No. 568, issued Septeniber 15, 1936, I
hereby designate for employment as fiscal agents of the United States for the purpose of taking applications solely from their own members and forwarding remittances for, and making delivery of. United States savings bonds, all Federal
savings and loan associations and Federal credit unions in good standing having500 or more members.
WAYNE C , TAYLOR,
;
September 15, 1936.
Acting Secretary of the Treasury, \
Exhibit 21
Designation of Federal savings and loan associations as fiscal agents for the cqllec-r
tion of delinquent accounts under title I of the National Housing Act ^
Under the authority contained in section 5 (k) of the Home Owners' Loan Act
of 1933, as amended (c. 168, 48 Stat.' 643, 646), and pursuant to and subject tothe conditions and limitations imposed by law, and those contained in Department Circular No. 568, issued September 15, 1936, I hereby designate all Federal
savings and loan associations in good standing for employment as fiscal agents^
of the United States, for the purpose of collecting delinquent accounts arising out
of insurance and loan transactions of the .Administrator lunder :title I of theNational Housing Act, and making investigations and rendering reports respecting the said delinquencies as may be directed from time to time by the Administrator.
WAYNE C . TAYLOR,
Acting Secretary of the Treasury,
September 15, 1936.
Exhibit 22
Joint resolution to extend for a period of 2 years the guarantee by the.United States of
debentures issued by the Federal Housing Administrator
[Pub. Res. No. 6, 75th Gong., S. J. Res. 38]
Resolved by the Senate and House of Representatives of the United States of America
in Congress assembled. That section 204 (b) of the National Housing Act, as
amended, is amended by striking out "July 1, 1937" and inserting in lieu thereof
"July 1, 1939."
Approved, February 19, 1937.
MONETARY DEVELOPMENTS
Exhibit 23
Statement by the Secretary of the Treasury, September 25, 1936, issued simultaneously with similar statements by the Governments of Great • Britain and France,
announcing common principles with respect to international economic relations
By authority of the President, the Secretary of the Treasury makes the following statement:
The Government of the United States, after consultation with the British
Government and the French Government, joins with them in affirming a comnioni
desire to foster those conditions which safeguard peace and will best contribute
to the restoration of order in international economic relations and to pursue a
policy which will tend to promote prosperity in the world and to improve the
. standard of living of peoples.
1 See Department Circular No. 668, p. 256.
REPORT OF THE SECRETARY OF THE TREASURY
259'
The Government of the United States must, of course, in its policy towards
international monetary relations take into full account the requirements of internal ,
prosperity, as corresponding considera1;ions will be taken into account by the
Governments of France and Great Britiin; it welcomes this opportunity to reaffirm its purpose to continue the policy which it has pursued in the course of recent
years, one constant object of which is 1:0 maintain the greatest possible equilibrium in the system of international exchange and to avoid to the utmost extent
the creation of any disturbance of that system by American monetary action.
The Government of the United States shares with the Governments of France arid
Great Britain the conviction that the continuation of this two-fold policy wiD
serve the general purpose which all the governments should pursue.
The French Government informs the United States Government that, judging
that the desired stability of the principril currencies cannot be insured on a solid
basis except after the re-establishment of a lasting equilibrium between the various economic systems, it has decided with this object to propose to its Parlia«
ment the readjustment of its currency. The Government of the United States,
as also the British Government, has welcomed this decision in the hope that it
will establish more solid foundations for the stability of international economic
relations. The UnitedStates Government,'as'also the British and French Governments, declares its intention to continue to use appropriate available resourcesso as to avoid as far as possible any disturbance of the basis of international
exchange resulting from the proposed readjustment. It will arrange for such
consultation for this purpose as may f»rove necessafy with the other two Gov,ernments and their authorized agencies.
The> Government of the United States is moreover convinced, as are also the
Governments of France arid Great Britain, that the success of the policy set forth
above is linked with the development of international trade. In particular it
attaches the greatest importance to a(;tion being taken without delay to relax
progressively the.present system of quctas and exchange controls with a view to
their abolition.
The Government of the United States, in common with the Governments of
France and Great Britain, desires and invites the cooperation of the other nations
to realize the policy laid down in the present declaration. It trusts that no country
will attempt to obtain an unreasonable competitive exchange advantage and
thereby hamper the effort to restore riiore stable economic relations which it is
the aim of the three Governments to promote.
Exhibit 24
Note from the Belgian Embassy, September 26, 1936, informing the Secretary of State
that the Belgian Government adheres to the principles of the tripartite declaration of
September 25, 1936
The Secretary of the Treasury makes public the following note from the Belgian
Embassy, transmitted to the Treasury Department by the Secretary of State:
Washington, September 26, 1936.
Mr. SECRETARY:
Upon the order of my Government, I have the honor to inform Your Excellency
of the following:
The Belgian Governriient has-learned of the declarations by which the Governments of France, Great Britain, and the United States have considered it opportune to express their intentions with regard to the monetary and economic problems existing at the present time, and joins with them in affirming a common
intention, of safeguarding the peace, of favoring the establishment of conditionswhich will contribute to the restoration of order through the international economic relations and to pursue a policy ^rith a view to developing world prosperity
and improving the standard of living oi: all peoples.
To this effect the Belgian Government is decided to modify in no way the monetary policy which it has carried out during the last year and a half and which ha»
had the effect of assuring the complete stability of the Belgian franc on the international exchange market, avoiding any disturbance of that market.
The French Government, considering that the desirable Stability of the principal currencies cannot be assured on a solid basis without a previous re-establishment of a durable equilibrium between the various national economies, has decided
to propose for this purpose to its Parliament the adjustment of its currency. The
Belgian Government, as well as the Governments of the United States and Great
260
REPORT OF THE SECRETARY^ OF THE TREASURY
Britain, considers t h a t this decision' ib of'a riatufe to establish Pn more sbiid foundations t h e stability of internatioriai relationships. I t is r e a d y , t o t a k e pa,rt as
often as it m a y be necessary or useful in the consultatipns Which" m a y be" called,^
either between the interested gdvernriients or between t h e competerit iristitiitidns.
T h e Belgian Government, as Wellas t h e GoVerriments of Francie, Great Britain,
a n d t h e United States, is moreover cbnviriced t h a t t h e success of t h e .policy above.
Outlined is bound up with' t h e ' development of interriatipnal. commerce.
Particularly, it attaches; t h e greatest iriiportance to t h e iriitia;tiori of an actiori
without delay with a view, to reducing progressively t h e existing systems of contingents and control of exchange w i t h a'view to their final abolitiPn.
T h e Belgian Governriierit, as well as t h e Governments of France, Great Britain,
arid t h e United States, considers t h a t t h e coll3,b6ration of t h e ' o t h e r nations for
t h e ' r e a l i z a t i o n of this prograrii above mentioned is highly desirablei For this
purpose, t h e Belgian Government will remain always willing and ready to bring
its entire collaboration.
For t h e Amba,ssador:
. P R I N C E E U G E N E I)E L I G N E .
His
Excellency the
SECRETARY OF S T A T E ,
D e p a r t m e n t of State, "PTas/iingr^on, Z>. C.
Exhibit 25
Announcement by-the Secretary of the Treasury, October 13, 1936, that the United
States will sell gold to the exchange equalization or stabilization funds of those
countries whose funds likewise offer, to sell gold to the United States
Supplementing t h e announcements m a d e by him on J a n u a r y 31 and F e b r u a r y
1, 1934, to t h e effect t h a t t h e Treasury would buy gold, and on J a n u a r y 31, 1934,
referring to t h e sale of gold for export, ,the Secretary of t h e Treasury states t h a t
(hereafter, a n d until, on. 24-hours' notice, this s t a t e m e n t of intention m a y be
revoked or altered) t h e United, States will also sell gold for immediate export t o ,
•or e a r m a r k for t h e account of,,the exchange equalization or stabilization funds
•of those countries whose funds likewise are offering to seU gold to t h e United States,
provided such offerings of gold are a t such rates and upori such* t e r m s and conditions as t h e Secretary m a y deem most advantageous to t h e public interest.
T h e Secretary announces herewith, and will hereafter announce daily^ t h e names
•of the foreign countries complying with t h e foregoing conditions. All such sales
of gold will be m a d e through t h e Federal Reserve Bank of New York, as fiscal
•agent of t h e United States,- upon the. following terms and conditions^ which t h e
Secretary of tlie. Treasury deems most advantageous to t h e public interest:
Sales' of gold will be m a d e a t $35 per fine ounce, plus one-quarter percent
handling charge, and sales and earmarking will be governed by t h e regulations
issued under t h e Gold Reserve Act of. 1934..
„.„....
. . . . ' .
Exhibit 26
Statement by the Secretary of the Treasury, October 13, 1936, naming Great Britain
and France as complying with the conditions, specified in the announcement of
October 13, 1936, for the purchase of gold from the United States
T h e Secretary'of tlie'Treasufy t o d a y n a m e d Great Britain and France as complying with t h e conditions specified i n his press'release of October 13, 1936, for
t h e purchase of gold frorii t h e United States for immediate export or earmark. '[
Exhibit 27
Note from the Royal Netherland Legation, November 21, 1936, informing the Secretary
of State that the Governmsnt of 'the Netherlands adheres to the principles of the
tripartite declaration? of September 25, 1936
, T h e Secretary of the Treasury makes public t h e following note from t h e Royal
Netherland Legation, t r a n s m i t t e d to the Treasury D e p a r t m e n t by t h e Acting
'Secretary of State:
. REPORT ,0F ..THE SECRETARY OF -THE TREASURY
261
• Washington, November 21, 1936.
SIR: Acting upon instructions of the Minister of Foreign Affairs of the Netherlands I have the-honor to inform Your Excellency of the following declaration
made by my Government:
"The Government of the Netherlands has cognizance of the declarations by
which the Governments of France, Great I^ritain," and the United States have
seen fit t o express their intention .^Yith regard to their monetary policy and adheresto the general principles stated iri their tripartite, declaration of September 25,
1936,"'
.
I avail myself'of this opportunity to renew to you,.,Sir, the assurances of ,my
highest consideration.
.'.,,,
,
C. VAN BREUGEL DOUGLAS,
Charge,dAffaires a. i. of the Neth-erlands.
•The Honorable R. WALTON MOORE,
Acting Secretary of State, Washington, D . C .
Exhibit 28
Note from the Swiss Legation, November 21, 1936, informing the Secretary of State
'" that the Governrrient of Switzerland adheres to the principles of the tripartite
declaration of September 25,'1936
The Secretary of the Treasury makes public the following note from the Swiss
Legation, transmitted to the .Treasury Department by the Acting Secretary of
State:
Washington, November 21, 1936. •
SIR: I have the honor to inform you that I have been instructed by my Government to convey to you the following:
"The Government of Switzerland has cogirizance of the declarations by which
the Governments of France, Great Britian, and the United States of America have
seen fit to express their intentions with regard to their monetary policy and adheres
to the general principles staited in their tripartite declaration of September 25."
Accept, sir, the assurances of my highest consideration.
MARC PETER,
• '
' ' . '
Minister of Switzerland.
• The Honorable R. WALTON MooRE,
Acting Secretary of State^ Washington.
Exhibit 29
Announcement by the Secretary of the Treasury, November 24, 1936, of arrangementsgiving effect io the desire of the Governments of Belgium, the Netherlands, and
Switzerland to cooperate in accordance with the principles of the tripartite declaration
of September 25, 19.36 ,
By authority of the President the Secretar}^ of the Treasury announces that as a.
further step in the direction bf international monetary equilibrium arrangements
have been made to'give effect to'the desire of the" Governments of Belgium, the
Netherlands, and Switzerland to cooperate T^ith the Governments of the United.
States, Great Bi*itain,"and France in accorclance with the principles of the tripartite declaration of September 25, 1936.
' The'B'elgiari Govefnnient'nbtified the United-States of its iadherence to theseprinciples on September 26. Similar declarations of adherence have now been
received from the Governments of the Netherlands and Switzerland.
The Governments of the United States, Great Britian, and France welcome the
declarations of the Governments of Belgium, Switzerland, and the Netherlands
expressing their adherence to.the principles s.tated in the tripartite, declaration of
September 25. =
.
.
.
. .. .
Arrangements have been made by the United States Treasury for gold transactions j^n 'a reciprocal basis with these three countries. These arrangements
.are given effect by public statements of the Secretary of the. Treasury which are
annexed hereto. [Statements omitted here; siee exhibits 25 and 31.]
:262
REPORT OF THE SECRETARY OF THE TREASURY
Exhibit 30
Announcement by the Secretary of the Treasury, November 24, 1936, supplementing
the announcement of October 13; 1936, that the- United States will also sell gold to
the treasuries and certain fiscal agencies of those countries whose treasuries and fiscal
agencies likewise offer to sell gold to the United States
Supplementing the announcement made by him on October 13, 1936, relating
i}0 the sale of gold for export, the Secretary of the Treasury states that (here.after, and until, on 24-hours' notice, this statement of intention may be revoked or altered) the United States, in addition to sales of gold to the exchange
^equalization or stabilization funds of foreign countries, will also sell gold for
immediate export to, or earmark for the account of, the treasuries, or any fiscal
.agencies acting for or whose acts in this connection are guaranteed by the treasuries, of those countries whose treasuries or fiscal agencies so acting or guaranteed
.are likewise offering to sell gold to the United States,' provided such offerings of
gold are at such rates and upon such terms and conditions as the Secretary may
deem most advantageous to the public interest. The Secretary announces herew-ith, and will hereafter announce daily, the names of the-foreign countries complying with the foregoing conditions. All such sales of gold by the United States
will be made through the Federal Reserve Bank of New York, as fiscal agent of the
United States, upon the following terms and conditions which the Secretary of the
Treasury deems most advantageous to the public inte'rest:
Sales of gold will be made at $35 per fine ounce, plus one-quarter percent
handling charge, and sales and earmarking will be governed by the regulations
issued under the Gold Reserve Act of 1934.
The Secretary further announces that his statenient of January 31,1934, relating
to the sale of gold for export, is accordingly withdrawn.
Exhibit 31
Statement by the Secretary of the Treasury, November 24, 1936, naming Belgium,
the Netherlands, and Switzerland as complying with the conditions specified in the
^ announcement of October 13, 1936, as supplemented
The Secretary of the Treasury today named the following additional countries,
Belgium, the Netherlands, Switzerland, as complying with the conditions specified
in his press release of October 13, 1936, as Supplemented by his press release of
November 24, 1936, for the purchase of gold from the United States for immediate
•export or earmark.
Exhibit 32
Announcement by the Secretary of the Treasury, December 22,1936, with respect to net
additional acquisitions or releases of gold^ by the s Treasiiry:. Department
The Secretary of the Treasury, after conferring with the Board of Governors of
the Federal Reserve System, announces that he proposes, whenever it is deemed
advisable and in the public interest to do so, to take appropriate action with
respect to net additional acquisitions or releases of gold' by the Treasury Department.
This will be accomplished by the sale of additional public debt obligations, the
proceeds of which will be used for the purchase of gold, and by the purchase or
Tedemption of outstanding obligations in the case of movements in the reverse
direction.
Exhibit 33
An act to extend the time within which the powers relating to the stabilization fund and
alteration of the weight of the dollar niay be exercised
[Public No. 1, 75th Cong., S. 416]
Be it enacted by the Senate and House of Representatives of the United States of
America in Congress assembled. That subsection (c) of section 10 of the Gold Reserve Act of 1934, approved January 30, 1934, is amended to read as follows:
REPORT OF THE SECRETAEY OF THE TREASURY
263
"(c) All the powers conferred by this section shall expire June 30, 1939, unless
the President shall sooner declare the existing emergency ended and the operation
of the stabilization fund terminated."
SEC. 2. The second sentence added to pai-agraph (b)- (2) of section 43, title III,
of the act approved May 12, 1933, by section 12 of said Gold Reserve Act of 1934
is amended to read as follows: "The powers of the President specified in this paragraph shall be deemed to be separate, distin<;t, and continuing powers, and may be
exercised by him, from time to time, severally or together, whenever and as the
expressed objects of this section in his jud;?ment may require; except that such
powers shall expire June 30, 1939, unless the President shall sooner declare the
existing emergency ended."
Approved, January 23, 1937, 2 p. m.
Exhibit 34
Announcerneni by the Secretary of the Treasury, March 11,1937, of instructions directing collectors of customs to refuse entry of gold from Mexico unless the shipment is
accompanied by a certificate showing that i\[ may lawfully be exported from Mexico
At the request of the Mexican Government and with the approval of the
President, Secretary Morgenthau today directed collectors of customs to refuse
entry into the United States of shipments of gold from Mexico unless the shipment
in each case is accompanied by a certificate showing that it may lawfully be
exported from Mexico. A copy of the Secretary's telegram to collectors follows:
'''To
COLLECTORS OF CUSTOMS IN THE CONTINENTAL UNITED STATES:
"Pursuant to the provisions of section 8a of the Provisional Regulations issued
under the Gold Reserve Act of 1934, you are hereby instructed, effective imm.ediately, and regardless of whether said regulations are otherwise complied
with, to refuse entry into the continental United States of gold in any form
(including gold in its natural state) exported from Mexico, unless there is filed
with you a certificate, duly certified by ar, officer of the Mexican Government,
to the effect that such gold was or may be lawfully exported from Mexico. However, these instructions do not apply to—
"(1) 'Fabricated gold' as defined in said .gold regulations.
"(2) Any substance, including gold in its natural state,, which you are satisfied,
after the filing of an appropriate affidavit by the importer, does not contain more
than 5 troy ounces of fine gold per short too.
" H E N R Y MORGENTHAU,
Jr.,
Secretary of the Treasury.*^
Exhibit 35
An act to extend the period during which direct obligations of the United States may
be used as collateral security for: Federal Reserve notes
[Public No. 9, 76th Oong., S. 417]
Be it enacted by the Senate and House op'Representatives of the United States of
America in Congress assembled. That the second paragraph of section 16 of the
Federal Reserve Act, as amended, is amended to read as follows:
"Any Federal Reserve bank may make application to the local Federal Reserve
agent for such amount of the Federal Resei-ve notes hereinbefore provided for as
it may require. ' Such application shall be a ccompanied with a tender to the local
Federal Reserve agent of collateral in amount equal to the sum of.the Federal
Reserve notes thus applied for and issued pursuant to such application. The
collateral security thus offered shall be notes, drafts, bills of exchange, or acceptances acquired under the provisions of section 13 of this act, or bills of exchange
endorsed by a member bank of any Federal Reserve district and purchased under
the provisions of section 14 of this act, or bankers' acceptances purchased under
the provisions of said section 14, or gold certi^csites: Provided, however. That until
June 30, 1939, the Board of Governors of th<; Federal Reserve System may, should
it deem it in the public interest, upon th(3 affirmative vote of not less than a
majority of its members, authorize the Federal Reserve banks to offer, and the
Federal Reserve agents to accept, as such collateral security, direct obligations of
264
REPORT OF THE SECRETARY OF -THE TREASURY
the United States. At the close of business on such date, or .sooner, should theBoard of Governors .of the Federal ..Reserve System so decide, siich authorization
shall terminate and such obligations of the United States be retired as security for
Federal Reserve notes. In no event.shall such collateral security be less than the
amount of Federal Reserve notes applied for. The Federal Reserve agent shall'
each day notify the Board of'Governors of the Federal Reserve System of all
issues and withdrawals of Federal Reserve" notes to and by the Federal Reserve
bank to which he is accredited. The said Board, of .Governors of the Federal;
Reserve System may at any time .call upon a Federal Reserve bank for additional'
security to protect the Federal Reserve notes issued to it." ,
Approved, March 1, 1937.
TAXATION
Exhibit 36
Joint resolution to provide revenue, and for other pwposes-_
•
[Public Res. No. 48, 75th Cong., H. J. Res: 375]
Resolved by the Senate and House of Representatives of the UnitedStates of America'
in Congress assembled. That title IV, as amended, and parts I, II, III, and IV, of
title V, as amended, of the Revenue Act of 1932, are further amended by striking:
out "1937" wherever appearing therein and inserting in lieu thereof "1'939".
Section 1001 (a), as amended, of the Revenue Act of 1932, and section 2, as
amended, of the act entitled "An Act to extend the gasoline tax for one year,,
to modify postage rates on mail matter, and for other purposes", approved June
16, 1933, are further amended by striking out "1937" wherever a^ppearing thereini
and inserting in lieu thereof "1939".
Approved, June29, 1937, 10 p . m .
Exhibit 37
Sections 3, 4 - ^ , 5 (c), 18, and 19, imposing a tax on coal under the Bituminous Goal
[Act of 1937 (Public No. 48, Apr. 26,.X937),
•,
TAX ON COAL
,
. \
. . . c>
SECTION 3. (a) There is hereby imposed upon the sale or other disposal of
bituminous coal produced within the IJnited States when sold or otherwise, disposed of by the producer thereof an excise tax of 1 cent per ton of two thousand
pounds.
The term "disposal" as used in this section includes consumption or use (whether
in the production of coke or fuel, or ptherwise) by a producer, and.any transfer of
title by the producer other than by sale.
-^
(b) In addition to the tax imposed by subsection (a) of this section,, there ishereby imposed upon the sale or other disposal of bituminous coal produced
within the United States, when „sold\Dr ..otherwise disposed , of ...by the. producer
thereof, which, would be subject to-the aipplicatiori-of the: conditions!-and. provisions
of the code provided for in section,4, or of.the..provisions of.section!.4-A, an excise
tax in an amount equal to 19 }f per .centumof the sale price at the mine in thecase'
of coal disposed of by sale at the mine, or in..the: case of coal disposed of otherwise
than by sale at the mine, and coal sold'otherwise-than thrpugh an-arm's length
transaction, 19K per centum of the fairmarket value of such "coal,at the tihie of
such disposal or sale. In the case of any producer who is a code, member as proy.
vided in section 4 and is so certified to^the Commissioner of Internal' Revenue by
the Commission, the sale or disposal by such producer during the continuance of
his membership in the code of coal produced by hini shall be exempt fi^om'the .tax
imposed by this subsection.
(c) The taxes imposed by this.section shall be paid to the United States by the'
producer, and shall be paj^able monthly for each calendar month on,or before thefirst business day of the second succeeding month, under such regulations and in'
such manner as shall be prescribed by the Commissioner of Internal Revenue,,
with the approval of the Secretary of the Treasury.
(d) In the case of coal disposed of otherwise than by sale at the mine, and coal
sold otherwise than through an arm's length transaction, the Cbmmissibner of
REPORT' OF THE SECRETARY OF THE TREASURY
265
Internal'Rev.enue shall determine the market value*'thereof. Such market value
shall equal the current market price at. the mine of coal of a cPmparable kind,
quality, and size produced for market in tde locality, where the coal so disposed
of is produced.
^,
, '
(e) -The tax imposed by'subsection (a) .of this section shall not applyin the Case
of a sale of coal for the exclusive use of, the United States or of any State or
Territory of. the United States or the District of Columbia^ or any political subdivision of any-of them, for use in the;performa,hce of governmental functions.
Under regulations prescribed by the Commissioner of Internal Revenue with the
approval of the Secretary of the Treasury, a credit against the tax imposed by
subsection (a) of this section or a refund may be allowed or made to any producer
of coal in the amount of such tax paid with respect to the sale of coal to any vendee,
if the producer has in his possession such evidence as the regulations may prescribe
that such coal was resold by any person for the exclusive^use of the United States
or" of any State, Territory of the United Stiates, or the District of • Columbia, or
£i!hy political subdivision'of a n y o f them,' for use in the performance of governmental functions.
:.. :
\ (f) No producer shall, by reason of his acceptance-of the code provided for in
section 4, or of the- exemption from the tax provided in subsection (b) in this
section, be held to be precluded or estopped from contesting the constitutionality
of any provision of this act or of the code, or the validity ^br application of either
to him or to any part of the coal produced by him.
SEC. 4-A. Whenever the Commission upon investigation instituted upon its
own motion or upon petition of any code member, district board. State or political
subdivision thereof, or the consumers' counsel, after hearing finds that transactions in coal in intrastate commerce fey i\>ny person or in any locality cause any
undue or unreasonable advantage, prefercjnce, or prejudice as between persons
^nd localities in such commerce on the one hand and ihtersta;te Commerce in coal
on the other hand, or any undue, unreasoiiable, or unjust discrimination against
interstate commerce in coal, or in any manner directly affect interstate" commerce
in coal, the Commission shall by order so declare and thereafter coal sold, delivered
or offered for sale in siich intrastate commerce.-shall be subject to the provisions of
section 4.
'
Any'producer believing that any comme^rce in coal is not subject to the provisions of section 4 or to the provisions of thti first paragraph of this section may file
with the Commission an application; verified by oath or afliirmation for exemption,
setting forth the facts upon which such claim is based. The filing of such application in good faith shall exempt the applicant, beginning with the third day following the filing of the application, from any obligation, duty, or liability imposed
by section 4 with respect to the comnaerce covered by the application until such
time as the Commission shall act upon the application. If the Commission has
reason to believe that such exemption during the period prior to action upon the
application is likely topefrhit evasion of tlie act with respect to cPmmerce in coal
properly subject to the provisions of section 4 or of the first paragraph of this
section, it may suspend the exemption for a period not to exceed ten days. Within
a reasonable time after the receipt of an;y^ application for exeniption the Cpminission shall enter an order granting, or, alter notice and opportunity fbr hearing,
denying or otherwise disposing of such ap;plication: As a condition to the entry
of and as a part of any order granting such, application, the Commission may
require the applicant to apply periodically for renewals of such order and to file
such periodic reports as the Commission may "fi'nd necessary oi* appropriate. to
enable it to determine whether the conditions supporting the exemption continue
to* exist." Any applicant aggrieved by an order denying or otherwise disposing
pf an applicatioii for exemption by the Commission may obtain a review of such
order in the'manner provided in subsectio:.! (b) of section 6.
SEC. 5.' (c) Any producer whose niemb(;rship in the code and whose right to an
exemption from- the tax imposed" by section 3 (b) of this act shall have been
revpked and ca'nceled may apply to the CJommission and shall have the right to
have his membership in the code festored upon payment by him to the United
States of double the amount of the tax ])rb;vided in section 3 (b) upon-the sailes
price at the mine, or the market value at the mine if disposed of otherwise than by
266
REPORT OF THE SECRETARY OF THE TREASURY
sale at the mine, or if sold otherwise than through an arm's length transaction,
of the coal sold or disposed of by the code meinber in violation of the.code or
regulations thereunder (but in no case/shall such sales price or market value be
taken to be less than the minimum price established by the Cbmmi^sioh for siich
coal and in effect at the time of such sale or other disposal), as found by the
Commission under subsection (b) hereof. The Commission shall thereupon certify to the Commissioner of Internal Revenue and to the collector of internal
revenue for the internal revenue collection district in which the producer resides
the amount of the required payment as found under clause (5) of subsection (b),
and upon payment of such amount to the Commissioner or the collector such
officer shall notify the Commission thereof.
SEC. 18. Section 3 of this act shall become effective on the first day of the
second calendar month after the enactment of this act, unless the Commission shall
not at that time have promulgated the cpde and forms of acceptance for membership therein, in which event section 3 of this act shall become effective from and
after the date when the Commission shall have promulgated the code and such
forms of acceptances, which date shall be promulgated by Executive order of the
President of the United States. All other sections, except section 20 (a), of this
act shall become effective on the day of the approval of this act.
SEC. 19. This act shall cease to be in effect (except as provided in section 13 of
the Revised Statutes) and any agencies and offices established thereunder shall
cease to exist on and after four years from the date of the approval of this act.
Exhibit 38
Joint resolution to amend the) act entitled *^An act to levy an excise tax upon carriers
and an income tax upon their employees,^dnd for other purposes^*, approved August
29, 1935
[Public Res. No. 9, 75th Cong., H. J. Res. 212]
Resolved by the Senate and House of Representatives of the United States of America
in Congress assembled. That section 12 of the act entitled "An act to levy an excise
tax upon carriers and an income tax upon their employees, and for other purposes", approved August 29, 1935, is amended by striking out "February 28,
1937" and inserting in lieu thereof "June 30, 1938".
Approved, February 27, 1937, 12 noon.
Exhibit 39
An act to levy an excise tax upon carriers and certain other employers and an income
tax upon their employees, and for other purposes
[Public No. 174, 76th Cong., H. R. 7589]
Be it enacted by the Senate and House of Representatives of the United States of
America in Congress assembled,
DEFINITIONS
SECTION 1. That as used in this act—
(a) The term "employer" means any carrier (as defined in subsection (i) of
this section), and any company which is directly or indirectly owned or controlled by one or more such carriers or under common contiol therewith, and
which operates any equipment or facility or performs any service (except trucking
service, casual service, and the casual operation of equipment or facilities) in con-nection with the transportation of.passengers or property by railroad, or the receipt, delivery, elevatioUj transfer in transit, refrigeration or icing, storage, or
handling of property transported by railroad, and any receiver, trustee, or other
individual or body, judicial or otherwise, when in the possession of the property
or operating all or any part of the business of any such employer: Provided,
however. That the term "employer" shall not include any street, interurban, or
suburban electric railway, unless such railway is operating as a part of a general
steam-railroad system of transportation, but shall not exclude any part of the
REPORT- OF THE SECRETARY OF THE TREASURY
267
general steam-railroad system of transportation now or hereafter operated by any
other motive power. The Interstate Commerce Commission is hereby authorized
and directed upon request of the; Gomniissioner of Internal Revenue, or upon complaint of any party interested, to detetmine a;fter hearing whether any line operated by electric power falls within the terms of this proviso. The term "employer" shall also include railroad associations, traffic associations, tariff bureaus,
demurrage bureaus, weighing and inspection bureaus, collection agencies and
other associations, bureaus, agencies, or organizations controlled and maintained
wholly or principally by two or more emplo;yers as hereinbefore defined and engaged in the performance of services in connection with or incidental to railroad
transportation; and railway labor organizations, national in scope, which have
been or may be organized in accordance "\nth the provisions of the Railway
Labor Act, as a,mended, and their State and National legislative committees
and their general committees and their insurance departnients and their local'
lodges and divisions, established pursuant to the constitution and bylaws of such
organizations.
(b) The term "employee" means any person in the service of one or more
employers for compensation: Provided, however. That the term "employee" shall'
include an employee of a local lodge or division defined as an employer in subsection (a) only if he was in the service of or in the employment relation to a
carrier on or after August 29, 1935. An individual is in the employment relation
to a carrier if he is on furlough, subject to (jail for service within or outside the
United States and ready and willing to serve, or on leave of absence, or absent
on account of sickness or disability; all in accordance with the established rules
and practices in effect on the carrier: Provided further, That an individual shall'
not be deemed to have been on August 29, 1935, in the employment relation to a
carrier not conducting the principal part of its business in the United States
unless during the last pay-roll period in whiich he rendered service to it prior to
said date, he rendered service to it in the Uriited States.
(c) The term "employee representative" means any officer or official representative of a railway labor,organization otb^r than a labor organization included
in the term "eniployer" as defined in section 1 (a), who before or after the enaictment hereof was in the service of an employee as defined in section 1 (a) and who
is duly authorized and designated to represent employees in accordance with the
Railway Labor Act, as amended, and any individual who is regularly assigned to
or regularly employed by such officer or official representative in connection with
the duties of his office.
(d) An individual is in the service of an employer whether his service is rendered
within or without the United States if he is subject to the continuing authority
of the employer to supervise and direct thei manner of rendition of his service,
which service he renders for compensation: Provided, however, That an individual
shall be deemed to be in the service of an eiaployer not conducting the principal
part of its business in the United States only when he is rendering service to it
in the United States.
(e) The term "compensation" means any form of money remuneration earned
by an individual for services rendered as an employee to one or more employers,
or as an employee representative, including remuneration paid for time lost as
an employee, but remuneration paid for time lost shall be deemed, earned in the
month in which such time is lost. Such term does not include tips, or the voluntary payment by an employer, without deduction from the remuneration of the
employee, of the tax imposed on such emplc^yee by section 2 of this act. Compensation which is earned during the perj;od for which the Commissioner of
Internal Revenue shall require a return of ta,xes hereunder to be made and which
is payable during the calendar month following such period shall be deemed to
have been paid during such period only.
(f) The term "United-States" when used in a geographical sense means the
States, Alaska, Hawaii, and the District of (Columbia.
(g) The term "company" includes corpoi'ations, associations, and joint-stock
companies.
(h) The term "employee" includes an offii^er of an employer.
(i) The term "carrier" means an express company, sleeping-car company, of
carrier by railroad,' subject to part I of the Interstate Commerce Act.
(j) The term "person" means an individual, a partnership,, an association, a
joint-stock company, or a eorporation.
INCOME TAX ON EMPLOYEES
SEC. 2. (a) In addition to other taxes, there shall be levied, collected, and paid
upon the income of every employee a tax equal to the following percentages of so
268
REPORT OF TECE SECRETARY OF THE TREASURY
much of the compensation'of such employee as is not in excess of $300 for any
calendar month, eairnM by him after Deceniber.3iy. 1936—1. With respect to compensation earned during the calendar years' 1937, 1938,
and 1939, the rate shall be 2 ^ per centum;
'
. • "
2. With respect to" compensation earned "during the'calendar, years 1940,' r94i-,
and 1942, the rate "shall be 3 per centurh;"
:
^ : .
3. With respect to compensation earned during the calendar years 1943,' 1944,
:and 1945, the rate shall^be 3K'per centum;
' • '• - ,
;. - •
4. With respect to compensation earned during'the-calendar year's 1946, 1947,
•and 1948,, the rate shall be'SH per centum;
•
- v
5. With respect to compensation earned after December 31, 1948, the rate
shall be 3%'^ per centum.
'
'
: , , - . '
(b) The tax im'pbsed by this section sh^ll be-collected by the erhployer of the
taxpayer by deducting the amount of the tax*-froni the cornpensation of the
employee as and when paid. If ah employee is, paid compensation by 'more thafi
one employer with respect to any calendar month, then, under regulations' made
under this act', the' Comrhissibner of Internal Revenue may prescribe. the proportion of the't^,x to be dediicted by each employer from the compensation paid by
him to, the/employee w^ith respect'to' such . indnthv ' Every employer .• required
under this subsection'to' deduct the tax is-hereby'made liable for the payment of
such tax and shall not be liable to any person forthte arnount of any such payrnent.
(c)' If more orless than the correct amount'of tax imposed by this section is paid
with respect to any compensatioh payment, then, under regulations made under
this aiet by the Commissioner'of Internal' Reveiiue, with the approval of the
Secretary'of the Treasury, proper adjustmentsrwith respect, both'to the taix and
•the amburit to be deducted/shall be nlade, without interest, in-connection with
gubsequent compensation payments to the: same ehiployee by the same employer,
- EXCISE TAX O N : EMPLOYERS
. :
i
•
. S E C . 3. (a) In addition to,other taxes, every, employer shall pay an. excise tax,
with respect to haying individuals in. his emplpy, .equal to the following percentages of so much pf the cpmpehsatipn.as is not in excess of ,$300 for any calendar
•mpnth paid,by him fp,any emplpy ee for services rendered to him after December
31,. 1936: Provided, however. That if an employee is paid compensatipn by rnbre
than one employer with respect to any such calend.ar month, the tax imposed by
this section shall apply to not inore than $300 of the aggregate compensatipn paid
to said employee by all said employers with respect, to such calendar month, and
each such employer shall be liable, for t h a t propprtion of the tax with respect to
such cpmpensatipn which his pay ment ^^^^
employee with respect to such calendar mpnth bears to the aggregate compensation paid to,such employee by all
employers w,ith respect to such calendar month:
.
......;. .
1. With respect ,t6: compensation paid to employees for. services rendered during
the calendar years 1937, 1938, and 1939, the rate shall be 2 ^ per centum,;
2. ..With respect.tp compensation paid. tp employees for services" rendered during
the calendar years 1940, .1941, and!' 1942, the rate shall be 3' per centum; .. , ' .,
3. With respect to conipensation pajd. to employees for seryices rendered during
the calendar years 1943,: 1944, and 1945, the ratesliali be 3}^ per cerit'um;
. 4. With respect to compensation paid to emplbyees for seryices rendered during
the calendar years 1946; 1947, and 1948, the rate siiall be Syi per centum;
5. With respect to compensatipn paid to .employees for services.rendered after
December 31, i948,.the rate shall be 3 ^ per.centum^^ :., ,
:(b) If more or less than the correct aimount of the tax: imposed by this section
is paid with respect to.any compensation paynieht, then,, under regulations made
by the Commissioner of Internal Revenue, with^^the approval, of the Secretary of
the Treasury, proper adjustments with respect to the tax shall be ma^de, without
interest, in connection with subsequent excise-tax:payments,made by the same
employer.- .
. .,; •
•..,,,. .[ ,;
, , . . ..r ,
REFUNDS A N D DEFICIENCIES
SEC. 4. If more, pr less than the correct aniioiint bf the tax imposed by section
2 (a) or 3 (a) of this act is paid or deducted with respect to any conipensation
payment and the pverpaynierit or underpayment of the tax ckrinpt be a^djusted
under section 2 (c)' or 3 (b), the amount of the overpayrnenti shall" be; refunded,
or the amount of the underpayment shall be collected in such mahner and at such
times (subject to the statute of limitations properly, applicable thereto) as may
be prescribed by regulations under this act as ma^e by the Commissioner of
Internal. Revenue, with the approval of the.Secretary, of the Treasury i .• . ,
REPORT OF THE SECRETAR'i OF THE TREASURY
269.
INCOME TAX ON EMPLOYEE REPRESENTATIVES
SEC. 5. In addition to other taxes, there shall be levied, collected, and paid
upon the income of each employee representative a tax equal to the following
percentages of so much of the compensation of such employee representative as
is not in excess of $300 for any calendar month, earned by him after December
31, 1936:
1. With respect to compensation earned during the calendar years 1937, 1938,
and 1939, the rate shall be 5 ^ per centum;
2. With respect to compensation earned during the calendar years 1940, 1941,
and 1942, the rate shall be 6 per centum;'
3. With respect to compensation earned during the calendar years 1943, 1944,
and 1945, the rate shall be 6}^ per centum;
4. With respect to compensation earned during the calendar years 1946, 1947,
and 1948, the rate shall be 7 per centum;
5. With respect to compensation earned after December 31, 1948, the rate shall
be 7H per centum.
The compensation of an employee representative for the purpose of ascertaining
the tax thereon shall be determined^in the same manner and with the same effect
as if the employee organization by which such employee representative is employed
were an employer as defined in section 1 (a) of this act.
DEDUCTIBILITY FROM INCOME TAX
SEC. 6. For the purposes of the income tax imposed by title I of the Revenue
Act of 1936 or by any act of Congress in substitution therefor, the taxes imposed
by sections 2 and 5 of this act shall not be allowed as a deduction to the taxpayer
in computing his net income.
COLLECTION A N D P A Y M E N T OP TAXES
SEC. 7. (a) The taxes imposed by this act shall be collected by the Bureau of
Internal Revenue and shall be paid into the Treasur}?- of the United States as
internal-revenue collections.
(b) The taxes imposed by this act shall be collected and paid quarterly or at
such other times and in such manner and urder such conditions not inconsistent
with this act as may be prescribed by the Commissioner of Internal Revenue with
the approval of the Secretary of the TreasuTy. If a tax imposed by this act is
not paid when due, there shall be added as j)art of the tax (except in the case of
adjustments made in accordance with the pi.'ovisions of this act) interest at the
rate of 6 per centum per annum from the date the tax became due until paid.
(c) All provisions of law, including penalties, applicable with respect to any
tax imposed by section 600 or section 800 of the Revenue Act of 1926, and the
provisions of section 607 of the Revenue Act of 1934, insofar as applicable and not
inconsistent with the provisions of this act, shall be applicable with respect to
the taxes imposed by this act.
(d) In the payment of any tax under this act, a fractional part of a cent- shall
be disregarded unless it amounts'to one-half cent or more, in which case it shall be
increased to 1 cent.
(e) Any tax paid under this act by a taxpayer with respect to any period with
respect to which he is not liable to tax under this,act shall be credited against the
tax, if any, imposed by title VIII of the Social Security Act upon such taxpaj^er,
and tbe balance, if any, shall be refunded. Any tax paid under title VIII of the
Social Security Act by a taxpayer with respect to any period with respect to which
he is not liable to tax under such title VIII shall be credited against the tax, if
any, imposed by this act upon such taxpay(}r, and the balance, if any, shall be
refunded.
COURT JURISD]:CTION
SEC. 8. The several district courts of the United States and the District Court
of the United States for the District of Columbia, respectively, shall have jurisdiction to entertain an application by the Attorney General on behalf of the Commissioner of Internal Revenue to compel an employee or other person residing
within the jurisdiction of the court or an employer subject to service of process
within its jurisdiction to comply with any obligations imposed on such employee,
employer, or other person under the provision!? of this act. The jurisdiction herein
specifically conferred upon such Federal coui'ts shall not be held exclusive of any
jurisdiction otherwise possessed by such courts to entertain actions at law or suits
in equity in aid of the enforcement of rights or obligations arising under the provisions of this act.
16109—38
19
270
REPORT OF THE SECRETARY OF THE TREASURY
SOCIAL SECURITY ACT
S E C 9. (a) The term "employment", as defined in subsection (b) of section 811
of title VIII of the Social Security Act, shall not include service performed by an
individual as an employee as defined in section 1 (b) or service performed as an
employee representative as defined in section 1 (c).
(b) The Secretary of the Treasury at intervals of not longer than three years
shall estimate the reduction in the amount of taxes collected under title VIII of
the Social Security Act by reason of the operation of subsection (a) of this section
and shall include such estimate in his annual report.
SEPARABILITY
S E C 10. If any provision of this act, or the application thereof to any person
or circumstance, is held invalid, the remainder of the act, and the application of
such provision to other persons or circumstances, shall not be affected thereby.
REPEAL OP PRIOR TAX ACT
S E C 11. The provisions of this act are in silbstitution for the provisions of the
act of August 29, 1935, as amended, entitled "An Act to levy an excise tax upon
carriers and an income tax upon their employees, and for other purposes", whic.h
is hereby repealed. All moneys payable as and for taxes under such act of August
29, 1935, and not heretofore paid shall cease to be payable and all proceedings
pending for the recovery of any such moneys shall be terminated. All sums paid
into the Treasury of the United States as and for taxes under such act shall be
refunded, except so much of the sums so paid as and for taxes with respect to
compensation earned after December 31, 1936, as equals the taxes imposed by
this act with respect to the same persons and the same period, and the sums not
required to be so refunded shall be retained in the Treasury of the United States
and credited on taxes due and payable under this act. All sums deducted by
employers from the compensation of employees as and for taxes under such act
of August 29, 1935, which have not been paid into the Treasury of the United
States shall be repaid by such employers to such employees, except so much of
the sums so deducted as and for taxes in respect of compensation earned after
December 31, 1936, as equals the taxes imposed and required to be deducted by
this act with respect to the same persons and the same period, and the sums not
required to be so repaid shall be paid into the Treasury of the United States and
thereupon shall be credited on taxes due and payable under this act. No interest
shall be allowed or paid with respect to any sum refunded, credited, or repaid
under the provisions of this section.
RULES AND REGULATIONS
S E C 12. The Commissioner of Internal Revenue, with the approval of the
Secretary of the Treasury, shall make and publish such rules and regulations as
may be necessary for the enforcement of this act.
SHORT TITLE
S E C 13. This act may be cited as the "Carriers Taxing Act of 1937".
Approved, June 29, 1937.
Exhibit 40
Joint resolution authorizing the Commissioner of Internal Revenue to grant further
extensions of time for filing returns under title I I I of the Revenue Act of 1936
[Public Res. No. 12, 75th Cong., H. J. Res. 249]
' Resolved by the Senate and House of Representatives of the United States of America
in Congress assembled, That the Commissioner of Internal Revenue be, and he is
hereby, authorized to grant additional reasonable extensions of time for filing
returns under title III of the Revenue Act of 1936 for the calendar year 1935 and
any fiscal year ending on or before August 31, 1936: Provided, That, except in the
case of taxpayers who are abroad, no such extension shall be made beyond June
15, 1937.
Approved, March 13, 1937, 11 a. m.
REPORT OF THE SECRETARY OF THE TREASURY
271
OBLIGATIONS OF FOREIGN GOVERNMENTS
Exhibit 41
Correspondence exchanged between the Government of the United States and various
foreign governments and statements concerning foreign debts owing to the United
States
BELGIUM
To the Secretary of State from the Belgian Ambassador, December I4, 1936
EXCELLENCY:
I had the honor to receive the note of No vember 25 last by which Your Excellency was good enough to transmit to me a statement of the payments envisaged
by the Belgian-American debt agreement oi' August 18, 1925, and by the moratorium agreement of June 10, 1932.
I did not fail to transmit this communication to my Government which has now
instructed me to inform the Government of the United States that the Royal
Government keenly regrets to find that the reasons which have forced it to suspend, since December 15, 1932, the service of its debt to the United States, have
lost none of their validity.
No new element having arisen which Tvould permit Belgium to modify its
attitude, my country finds it impossible to effect, on December 15 next, the
payment in question.
^
I avail myself [etc.].
VAN DER STRATEN.
To the Secretary of State from the Belgian Ambassador, June I4, 1937
EXCELLENCY:
I had the honor to receive the note of May 28 last by which Your Excellency
was good enough to transmit to me a statement of the payments envisaged by the
Belgian-American debt agreement of August 18, 1925, and by the moratorium
agreement of June 10, 1932.
I did not fail to transmit this communication to my Government, which has
now instructed me to inform the Government of the United States that the Royal
Government keenly regrets to find that the reasons which have forced it to suspend, since December 15, 1932, the service of its debt to the United States, have
lost none of their validity.
No new element having arisen which would permit Belgium to modify its
attitude, my country finds it impossible to effect, on June 15, 1937 next, the payment in question.
I avail myself [etc.].
VAN DER STRATEN.
CZECHOSLOVAKIA
To the Secretary of State from the Charge d Affaires ad interim of Czechoslovakia,
December I4, 1936
EXCELLENCY:
Acting upon the instructions of my Government, I have the honor to acknowledge the receipt of Your Excellency's note of November 25, 1936, transmitting a statement from the Secretary of T],'easury, which indicates the amounts
due from the Czechoslovak Government under the provisions of the debt agreement of October 13, 1925, and the moratoriuin agreement of June 10, 1932.
The Czechoslovak Government notes with appreciation Your Excellency's
reiterated suggestion that the Government cf the United States is fully disposed
to discuss through diplomatic channels any proposals which my Government may
have to present regarding the payment of this indebtedness and the eventual
submission of it to the United States Congress. As the result of a renewed study
of the circumstances attending the problem of Czechoslovak intergovernmental
indebtedness, my Government, to its profound regret, feels that any resumption
of discussions on this subject under prevailing conditions would hardly justify
any substantial hope of attaining a satisfactory arrangement at the present time.
Accept [etc.].
D^. JosEF NEMECEK.
272
REPORT OF THE SECRETARY OF THE TREASURY
To the Secretary of State from the Minister of Czechoslovakia, J u n e 11, 1937
EXCELLENCY:
Acting upon t h e instructions of m y Government, I h a v e t h e honor to acknowledge t h e receipt of Your Excellency's note of M a y 28, 1937, t r a n s m i t t i n g a statem e n t from t h e Secretary of Treasury, which indicates t h e a m o u n t s due from t h e
Czechoslovak Government under t h e provisions of t h e d e b t agreement of October 13, 1925, a n d t h e moratorium agreement of J u n e 10, 1932.
Adverting to its previous notes relative t o this subject, t h e Czechoslovak
Government appreciates t h e reiterated suggestions of t h e Government of t h e
United States to discuss t h r o u g h diplomatic channels, proposals regarding t h e
p a y m e n t of its indebtedness whenever circumstances permitted. However, m y
Government regrets t h a t t h e conditions which led t o its previous decisions continue t o prevail and, a t this time, do n o t w a r r a n t a resumption of discussions
which would be conducive t o a mutually satisfactory settlement of this question.
Accept [etc.].
V . I . HURBAN.
To the Secretary of State from the Acting Estonian Minister of Foreign Affairs,
J u n e 3, 1937
EXC'ELLENCY:
I h a v e t h e honor to inform you t h a t t h e Estonian Government for reasons stated
in their previous notes regret to be unable to effect, under t h e t e r m s of t h e debt
funding agreement of 1925 between Estonia a n d t h e United States of America,
t h e p a y m e n t of t h e installments falling due during t h e present financial year, i. e.,
on J u n e 15, 1937, a n d December 15, 1937.
I avail myself [etc.].
K. S E L T E R .
Announcing the receipt of payments due from Finland (Treasury Department press
releases, Dec. 15, 1936, and J u n e 15, 1937)
D E C E M B E R 15,
1936.
T h e Treasury received t o d a y t h e sum' of $231,315.50 from t h e Government of
Finland, representing a p a y m e n t of principal in. t h e a m o u n t of $67,000 and t h e
semiannual p a y m e n t of interest in t h e a m o u n t of $145,285 u n d e r . t h e funding
agreement of M a y 1, 1923, a n d $19,030.50 as t h e seventh semiannual a n n u i t y
due under t h e moratorium agreement of M a y 23, 1932. This p a y m e n t represents
t h e entire a m o u n t due from t h e Government of Finland a n d was paid in cash
t h r o u g h t h e Federal Reserve Bank of New York.
J U N E 15,
1937.
T h e T r e a s u r y received t o d a y t h e s u m of $163,143 from t h e ; Government of
Finland, representing t h e semiannual p a y m e n t of interest in t h e a m o u n t of
$144,112.50 under t h e funding agreement of M a y 1, 1923, a n d $19,030.50 as t h e
eighth semiannual a n n u i t y due under t h e moratorium agreement of M a y 23, 1932.
This paymerit represents t h e entire a m o u n t due from t h e G o v e r n m e n t of Finland.
T h e p a y m e n t of interest consisted of $142,000 face a m o u n t of 2}^ percent Treasury
bonds of 1949-53, which were accepted a t par, $1,775 accrued interest thereon
a n d cash for $337.50. T h e a n n u i t y of $19,030.50 due under t h e m o r a t o r i u m
agreement was paid in cash.
PRANCE
To the Secretary of State from the French Ambassador, December I 4 , 1936
[Translation]
M R . S E C R E T A R Y OF S T A T E :
I have t h e honor to acknowledge t h e receipt of Your Excellency's note, d a t e d
November 25, 1936, transmitting a s t a t e m e n t of t h e a m o u n t s due b y France to
t h e United States on December 15 next, under t h e terms of t h e agreements signed
by t h e French Government.
REPORT OF THE SECRETARY OF :THE TREASURY
273
In presenting this statement, you take ocDasion\to\ reiterate that the American
Government is fully disposed to discuss through diplomatic channels any proposals which the Government of the Republic may desire to put forward in regard
to the settlement of this indebtedness and to give them' ca'reful consideration with
a view to their eventual submission to Congress.
The French Government thanks the American Government for having been sokind as to renew these assurances.
Therefore, desirous of promising only whst it will be able to perform, it regrets
profoundly that the distressing economic depression which the country has just
undergone and the state of world economic; relations do not permit it as yet to
present any proposals. Such proposals, in view of the disequilibrium of the balance of trade and of the balance of payments, might have an influence on its
eff'ort toward recovery and might compromise the beneficial effects of the international monetary understandings in which it has been happy to participate
recently.
It hopes that these cooperative understandings, together with the improvement
of world economic conditions and also the triumph of the democratic thesis which
it is endeavoring to sustain by the limitation of armaments, will permit it to open
through normal diplomatic channels negotiations with a view to an arrangement
acceptable to both countries which would strengthen their bonds of friendship
and of confidence to the benefit of the welfa],'e and the peace of the peoples.
Please accept [etc.].
ANDRE DE LABOULAYE.
To the Secretary of State from the French Ambassador, June 14, 1937
EXCELLENCY:
I have the honor to acknowledge the recei^pt of Your Excellency's note, dated
May 28, 1937, transmitting a statement of the amounts due by France to the
United States on June 15 next, under the terms of the agreements signed by the
French Government.
In presenting this statement, you took occasion to reiterate that the Government
of the United States is fully disposed to discuss, through diplomatic channels, any
proposals which the French Government may desire to put forward in regard to
the settlement of this indebtedness and to f;ive them careful consideration with a
view to their eventual submission to the American Congress.
The French Government thanks the Government of the United States for
having been so kind as to renew these assurg.noes and desires on its part to emphasize again its sincere desire to seek the bases ;'or a settlemejQt of this debt acceptable
to both countries.
As soon as a satisfactory development of the situation will permit, the French
Government will not fail to seize the opportunity, which it hopes will be soon, to
enter into conversations for the negotiation, of an agreement to the conclusion of
which, like the Government of the United States, it attaches great importance.
Please accept [etc.].
GEORGES BONNET.
GREAT BRITAIN
To the Secretary of State from the British Ambassador, December 10, 1936
SIR:
In accordance with instructions from His Majesty's Principal Secretary of
State for Foreign Affairs I have the honor to acknowledge the receipt of your
note of the 25th November enclosing a st^ttement'of the amounts due from His
Majesty's Government in the United Kingdom under the provisions of the debt
agreement of the 19th June, 1923, and tlie moratorium agreement of the 4th
June, 1932.
I am to thank you for your assurance that the United States Government is
fully disposed to discuss any proposals wJiich His Majesty's Government may
decide to put forward in regard to the payment of this indebtedness, with a view to
the eventual submission of such proposals to the American Congress. I am to
assure you in return that His Majesty's Government will be ready to reopen
discussions on the matter whenever circumstances are such as to warrant the hope
that a satisfactory result might be reached.
I have the honor [etc.].
R.
C.
LINDSAY.
274
REPORT OF THE SECRETARY OF THE TREASURY
To the Secretary, fif State from the British Amb^assador, June I4, 1937
SIR:
In accordance with instructions from His Majesty's Principal Secretary of
State for Foreign Affairs, I have the honor to acknowledge the receipt of your note
of the 28th May enclosing a statement of the amounts due from Sis Majesty's
Government in the United Kingdom under the provisions of the debt agreement
of the 19th June, 1923, and the moratorium agreement of the 4th June, 1932.
I am directed to express the appreciation of His Majesty's Government of the
assurance that the Government of the United States is fully disposed to discuss
any proposals which His Majesty's Government may decide to put forward in
regard to the payment of this indebtedness; and in return I am to assure you
that His Majesty's Government will be willing to reopen discussions on the
subject whenever circumstances are such as to warrant the hope that a satisfactory
result might be reached.
I have the honor [etc.].
R.
C.
LINDSAY.
GREECE
Announcing the receipt of interest payments due from Greece (Treasury Department
press releases, Oct. 23 and Nov. 7, 1936)
OCTOBER 23,
1936.
The Secretary of the Treasury today announced that the Greek Government
transferred to the United States treasury on October 21,1936, the sum of $108,960.
Of this amount, $10,896 represents an additional 5 percent of the semiannual
interest amounting to $217,920 due May 10, 1935; $10,896 represents an additional 5 percent of the semiannual interest amounting to $217,920 due November
10, 1935 (increasing to 40 percent the payment of interest due on those dates)
and $87,168 represents 40 percent of the semiannual interest amounting to $217,920
due May 10,1936, all on the 4 percent loan of 1929.
NOVEMBER 7,
1936.
The Secretary of the Treasury today announced that the Greek Government
transferred to the United States Treasury on November 6,1936, the sum of $87,168,
representing 40 percent of the semiannual interest amounting to $217,920 due
November 10, 1936, on the 4 percent loan of 1929 made to that Government by the
United States.
HUNGARY
To the Secretary of State from the Hungarian Minister, December I4, 1936
SIR:
I have the honor to inform you that I have been instructed by my Government
to advise the Government of the United States that owing to Hungary's continued
difficult financial situation, my Government regrets exceedingly its inability to pay
the amount of $50,335.01, representing the principal and semiannual interest
due on December 15, 1936, under the funding agreement or to deposit its pengoe
equivalent at the Hungarian National Bank. However, on that date my Government will deposit to the Foreign Creditors Account at the Hungarian National
Bank a Hungarian Treasury Certificate in the pengoe equivalent of the amount
due bearing interest at the rate of 2 per centum per annum.
Accept [etc.].
JOHN PELISNYI.
To the Secretary of State from the Hungarian Minister, June H , 1937
SIR:
I have the honor to inform you that I have been instructed by my Government
to advise the Government of the United States that owing to continued unfavorable economic conditions the Hungarian Government regrets exceedingly its inability to pay the amount of $36,273.16 due on June 15, 1937, under the funding
agreement or to deposit its pengoe equivalent at the Hungarian National Bank.
REPORT OF THE SECRETARY OF THE TREASURY
275
However, on that date my Government will deposit to the Foreign Creditors
Account at the Hungarian National Bank a Hungarian Treasury Certificate in the
pengoe equivalent of the amount due bearing interest at the rate of 2 per centum
per annum.
Accept [etc.].
JOHN PEL^NYI.
O
ITALY
To the Secretary of State from the Italian Ambassador, December 11, 1936
HONORABLE SIR:
I have the honor to acknowledge the receipt of your note of November 25,
whereby you have sent me a statement oi" the accounts due from the Italian
Government up to the 15th of December 1936, under the provisions of the debt
agreement of November 14, 1925, and the moratorium agreement of June 3, 1932.
My Government has taken note with appreciation of the renewed assurance
that the United'States Government is fully disposed to discuss, through diplomatic channels, any proposals which the Italian Government may desire to put
forward in regard to the payment of its indebtedness and that such proposals would
receive careful consideration with a view to eventual submission to the American
Congress.
While thanking you for the above communication, my Government regrets to
be still unable, at the present moment, to submit any proposals and wishes to
refer to the considerations previously brought to the attention of the Federal
Government.
Accept [etc.].
SUVICH.
To the Secretary of State from the Italian Ambassador, June 10, 1937
HONORABLE SIR:
I have the honor to acknowledge the receipt of your note of May 28, whereby
you have sent me a statement of the accounts due from the Italian Government
up to June 15, 1937, under the provisions of the debt agreement of November 14,
1925, and the moratorium agreement of June 3, 1932.
My Government has taken note with ajipreciation of the renewed assuranpe
that the United States Government is fully disposed to discuss, through diplomatic channels, any proposals which the Italian Government may desire to put
forward in regard to the payment of its indebtedness and that such proposals
would receive careful consideration with a view to eventual submission to the
American Congress.
While thanking you for the above commurication, my Government regrets to be
still unable, at the present moment, to subiait any proposals and wishes to refer
to the considerations previously brought to the attention of the Federal Government.
Accept [etc.].
SUVICH.
To the Secretary of State from the Latvian Minister, December 14i 1936
SIR:
In reply to your note no. 800.51 W 89/991 of November 25 and referring to my
note no. 410.63/365 of June 13,1 have the honor to inform you that in the interval
which has elapsed since the dispatch of the note referred to above no changes have
been observed in the general position and in the circumstances of a nature that
could have altered the attitude of the Latvian Government in regard to the
settlement of the Latvian indebtedness to the United States.
In view of the above and maintaining their present views and their attitude in
regard to the subject as expressed in the relevant correspondence, I have the
honor to inform you that to their regret th(3 Latvian Government find it impossible to effect the payment of the installmeat of their debt to the United States
which becomes due on December 15, next.
Accept [etc.].
ALFRED BILMANIS.
276
REPORT OF THE SECRETARY OF THE TREASURY
To the Secretary of State from the Latvian Minister, June 2, 1937
SIR:
In reply to your note no. 800.51 W 89/1018 of May 28 and referring to my note
no. 410.63/939 of December 14, 1936, I have the honor to inform you that in the
interval which has elapsed since the dispatch of the note referred to above' no
^ changes have been observed in the general position and in the circumstances of a
nature that could have altered the attitude of the Latvian Government in regard
to the settlement of the Latvian indebtedness to the United States.
In view of the above and maintaining their present view and their attitude in
regard to the subject as expressed in the relevant correspondence, I have the honor
to inform you that to their regret the Latvian Government find it impossible to
effect the payment of the installment of their debt to the United States which
becomes due on June 15, next.
Accept [etc.].
ALFRED BILMANIS.
LITHUANIA
To the Secretary of State from the Lithuanian Minister, December 14, 1936
SIR:
I have the honor to acknowledge the receiipt of your note of November 25, 1936,
transmitting a statement showing the amounts due and payable June 15, 1933,
December 15, 1933, June 15, 1934, December 15, 1934, June 15, 1935, December
15, 1935, June 15, 1936, aind December 15, 1936, from my Gbvernment pursuant
to the terms of the debt agreement of September 22, 1924, and the moratorium
agreement of June 9, 1932.
Acting upon instructions received from my Government, I have the honor to
inform you that the Lithuanian Government, acknowledging its indebtedness
to the United States of America, regrets very much its inability to meet the payments due the United States Government on December 15, .1936, because of
much needed improvements of economic and financial conditions in Lithuania.
My government will be glad to submit proposals regarding its indebtedness when
it will be found that discussions in this matter will be likely to effect mutually
agreeable results.
Accept [etc.].
P.
ZADEIKIS.
To the Secretary of State from the Lithuanian Minister, June 14, 1937
SIR:
I have the honor to acknowledge the receipt of your note of May 28, 1937, transmitting a statement showing the amounts due and payable June 15, 1933, December 15, 1933, June 15, 1934, December 15, 1934, June 15, 1935, December 15,
1935, June 15, 1936, December 15, 1936, and June 15, 1937, from my Government
pursuant to the terms of the debt agreement of September 22, 1924, and the
moratorium agreement of June 9, 1932.
In accordance with my Government's instructions, I have the honor to inform
you that the Lithuanian Government, acknowledging its indebtedness to the
United States of America, regrets exceedingly its continued inability to effect the
payments due to the United States Government on June 15, 1937.
I have the honor to inform you also that the Lithuanian Government has taken
note of your reiteration that the United States Government is fully disposed to
discuss, through diplomatic channels, any proposals which the Lithuanian Government may desire to put forward in regard to the payment of this indebtedness,
and that such proposals would receive careful consideration with a view to eventual
submission to the American Congress. The Lithuanian Government will avail
itself of this opportunity when it will be found that discussions in this matter will
be likely to produce mutually agreeable results.
Accept [etc.].
P.
ZADEIKIS.
REPORT OF THE SECRETARY OF THE TREASURY
277
POLAND
To the Secretary of State from the Polish Ambassador, December I4, 1936
SIR:
I have t h e honor to inform you, upon t h e instruction of m y Government t h a t ,
for reasons analogous to those stated in t h e n o t e of December 8, 1932, a n d confirmed b y later declarations, t h e Government of Poland are obliged to request
similarly a deferment of p a y m e n t s of the installment payable on December
15, 1936.
T h e Polish Government are still not in a position to resume, towards t h e
United States, the service of the debt.
Accept [etc.].
JERZY POTOCKI.
To the Secretary of State from the Polish Ambassador, J u n e I4, 1937
. .
Acting upon instructions of m y Government, and in answer to your note of
M a y 28, 1937, I beg to t h a n k you for t h e assurance t h a t t h e United States Governm e n t is fully disposed to discuss, through diplomatic channels, any proposal
which m y Government desi^i-e to p u t forw£ird in regard t o p a y m e n t s resulting
from t h e terriis of t h e debt agreement of No^^ember 14, 1924, and t h e moratorium
agreement of June 10, 1932.
I n connection with t h e above I have t h e honor to inform you t h a t , for reasons
analogous to those contained in t h e note cf December 8, 1932, and confirmed
by later declarations, t h e Polish Governme]it are obliged to request similarly a
deferment bf p a y m e n t of t h e installment payable on .June 15, 1937, t h e PolishGo vernment, to their great regret, still nob being in a position to resume t h e
service of t h e debt towards the United Stateis.
Accept [etc.].
SIR:
JERZY POTOCKI.
To the Secretary of State from the R u m a n i a n Minister, December I 4 , 1936
.,
I have t h e honor to acknowledge receipt of your note of November 25, 1936,
enclosing t h e s t a t e m e n t showing t h e a m o u n t s , d u e from t h e R u m a n i a n Governm e n t u p t o December 15, 1936, p u r s u a n t tci t h e terms of t h e debt agreement of
December 4, 1925, and t h e moratorium agfeeihent of J u n e 11, 1932.
I n reply, I a m instructed by m y Government to s t a t e t h a t , in accordance
with m y previous communications, t h e R u m a n i a n Government feels t h a t no
changes have occurred in t h e general situation which, would permit to expect
a favorable result by initiating negoti^-tions ..at t h e present time.
Please accept [etc.].
.
SIR:
DAVILA.
To the Secretary of State from the R u m a n i a n Minister, J u n e 12, 1937
SIR:
I have t h e honor to acknowledge receipt of your note of M a y 28, 1937, enclosing
t h e s t a t e m e n t showing t h e a m o u n t s due f]'oni ,tlie R u m a n i a n Government up
to J u n e 15, 1937, p u r s u a n t to t h e terms of t h e d e b t agreement of December 4,
1925, and t h e moratorium agreement of J u n e 11, 1932.
I n reply, I a m instructed by m y Government to s t a t e t h a t , in accordance
with m y previous communications, t h e R u m a n i a n Government feels t h a t no
changes have, occurred in t h e general situation which would permit to expect
a favorable result by initiating negotiations at t h e present time.
Please accept [etc.].
DAVILA.
278
REPORT OF THE SECRETARY OF THE TREASURY
YUGOSLAVIA
To the Secretary of State from the Minister of Yugoslavia, June 2, 1937
M R . SECRETARY:
I have the honor to acknowledge the receipt of your letter transmitting, at
the request of the Secretary of the Treasury, a statement of the amount due by
Yugoslavia to the United States on June 15, 1937, under the terms of the debt
agreement of May 3, 1926.
I am instructed by my Government to inform Your Excellency that for the
same reason as that exposed in my letter of June 11, 1936, the Royal Government
is, to its sincere regret, unable to resume payments under the said agreement
or to present any proposal, under the present conditions, to this effect.
Accept [etc.],
CONSTANTIN FOTITCH.
ORGANIZATION AND PROCEDURE
Exhibit 42
First amendment, July 1, 1936, to Department Circular No. 563, prescribing regulations governing hours of employment and overtime work
TREASURY
DEPARTMENT,
Washington, July 1, 1936,
The provisions of Department Circular No. 563, dated June 12, 1936, are
hereby amended as follows:
BUREAU
OF ENGRAVING
AND
PRINTING
All employees in the Bureau of Engraving and Printing, except guides and
charwomen (part time), will be required to work 8 hours (inclusive of the luncheon
period) each week day except Saturday, a total of 40 hours per week. If, because
of an emergency, any employee is required to work on Saturday, his hours of work
shall, if possible, be curtailed upon some prior day or days of the same week, in
order that his total employment for the week, including Saturday, shall not be
in excess of 40 hours.
Guides will be required to work 6 hours each week day except Saturday, a
total of 30 hours per week.
Charwomen (part time) will be required to work 4 hours each week day except
Saturday, a total of 20 hours per week.
DIVISION OF D I S B U R S E M E N T
To conform to the hours of work above prescribed for employees of the Bureau
of Engraving and Printing, all employees in the Division of Disbursement, assigned
to the Bureau of Engraving and Printing, will be required to work 8 hours (inclusive of the luncheon period) each week day except Saturday, a total of 40 hours
per week.
PUBLIC DEBT SERVICE
To conform to the hours of work above prescribed for employees of the Bureau
of Engraving and Printing, all employees in the Division of Paper Custody will
be required to work 8 hours (inclusive of the luncheon period) each week day
except Saturday, a total of 40 hours per week.
PUBLIC HEALTH SERVICE
Paragraph 5 (b) of Department Circular No. 563, dated June 12, 1936, is
amended to read as follows:
*'5. (b) In the case of professional and subprofessional field employees of the
Public Health Service outside the District of Columbia, such employees will be
required to work an average of 56 hours a week over each period of 90 days, an
equivalent of 8 hours each day of the week. Subprofessional field employees in
the National Institute of Health, not assigned to technical duties, will be required
to work 8 hours (inclusive of the luncheon period) each week day except Saturday,
and 4 hours on Saturday, a total of 44 hours per week. Professional and sub-
REPORT OF THE SECRETARY OF THE TREASURY
279
professional employees of the Public Health Service assigned to the Bureau of
Engraving and Printing will be required to work 8 hours (inclusive of the luncheon
period) each week day except Saturday, a total of 40 hours per week."
HENRY MORGENTHAU,
Jr.,
Secretary of the Treasury,
Exhibit 43
Department Circular No. 187,^ revised July 27, 1936, prescribing time and leave
regulations for the departmental service
TREASURY
DEPARTMENT,
Washington, July 27, 1936.
To the Officers and Employees of the Treasury Department:
ANNUAL LEAVE OF ABSENCE
Executive Order No. 7409, dated July 9, 1936, prescribing regulations relating
to annual leave of Government employees,, is hereby promulgated for the information of all concerned:
^'By virtue of and pursuant to the authority vested in me by section 7 of the
act of March 14, 1936, entitled *An Act to provide for vacations to Government
employees and for other purposes' (Public No. 471, 74th Cong.), I hereby prescribe the following regulations governing the granting of annual leave to civilian
officers and employees of the United States, the District of Columbia, and al
corporations included within the provisions of section 6 of the said act, except as
provided in part III hereof:
**Part I, Definitions
' ' S E C 1. As used in these regulations:
"(a) 'Employee' and 'employees' include oflScer and officers, respectively.
"(6) 'Accumulated leave' means the unused annual leave not exceeding 60
days which has accrued during years prior to the current year.
"(c) 'Currents annual leave' means the leave authorized by statute for the
current year.
"(d) 'Current accrued leave' means that part of the current annual leave
which bears the same ratio to the current annual leave that the expired part of
the current year bears to the full year.
"(e) 'Unaccrued leave' means that pari} of the current annual leave which
bears the same ratio to the current annual leave as the unexpired part of the
current year bears to the full year.
"Part I I , General provisions
"SEC. 2. Permanent employees who ha\e been employed continuously for 1
year or more and who do not contemplate leaving the service during the current
calendar year shaU be entitled to annual leave with pay at any time during such
calendar year not in excess of 26 days, and in addition may be granted accumulated
leave, provided that the total leave granted at any time during a calendar year
shall not exceed the amount of the accumulated leave and the. current accrued
leave, except that in unusually meritorious cases employees may be granted both
accumulated and current annual leave.
" S E C 3. Unaccrued leave shaU be granted only with the express understanding
that if such leave is not later earned during the calendar year, deductions will be
made for the unearned portion from any salary due the employee, or any deductions
in the retirement fund to the credit of the employee.
" S E C 4. Employees entering the service by original appointment or by reinstatement shall be entitled to annual leave with pay accruing at the rate of 2}i
days for each month of service rendered until the completion of 1 year's service.
Emergency employees and employees appointed for an indefinite period shall be
entitled to annual leave with pay accruing at the rate of 2}^ days per month for
each month of service, and may in addition thereto be granted accumulated leave.
Employees appointed for an indefinite period shall include those in the field service
employed at manufacturing and repair establishments, such as navy yards, gun
factories, naval stations, arsenals, etc.
1 This circular supersedes all circulars regarding Time and Leave Regulations for the departmental service
including Circular No. 480 of Feb. 16,1933.
280
REPORT OF THE SECRETARY OF THE TREASURY
"SEC. 5. Employees transferred or reappointed without break in service from
one permanent position to another permanent position within the same or a
different governmental agency shall at the time of the transfer be credited with
accumulated leave and charged with unaccrued leave advanced.
"SEC. 6. An employee voluntarily separated from the service without prejudice during any calendar year shall be entitled to all accumulated leave plus
current accrued leave up to the date of separation.
"SEC. 7. The date of a discharge of an employee who is involuntarily separated
from the service other than for cause due to his own misconduct shall be fixed to
permit the allowance of all accumulated leave and current accrued leave.
"SEC. 8. Leave shall be granted at such time or times as may be deemed to be
in the public interest.
"SEC. 9. Annual leave shall not accrue during a period of leave without pay
when such absence is continuous for 30 days or more in any calendar j^ear.
"SEC. 10. Leave without pay shall not be granted until all accumulated leave
and current accrued leave allowable under these regulations is exhausted.
"SEC. 11. Employees shall be charged with annual leave only for absence on
their work days. Sundays, legal holidays, and holidays declared by Executive
order and nonwork days established by administrative order in accordance with
law occurring within a period of annual leave shall not be charged as annual leave.
Persons employed on the basis of a 5 day workweek, whose duties require service
on Saturday or Sunday, shall be charged a full day's annual leave for absence on
any Saturday or Sunday they are required to work.
"SEC. 12. The minimum charge for annual leave shall be 15 minutes. Annual
leave granted for less than 1 day shall be charged in the ratio that the amount of
annual leave granted bears to the number of work hours of the regular work day
prevailing in the agency concerned. For the purposes of this section, Saturdays
and part holidays shall not be considered regular work days, except as may be
required under section 11 hereof.
"SEC. 13. Annual leave shall not be granted with pay at the beginning of a
calendar year immediately following a period of absence in a nonpa}^ status in
the preceding year unless and until there shall have been a return to duty, at
which time the leave may be retroactively granted. Leave without pay under
any other circumstances may not later be converted into annual leave.
"SEC. 14. Temporary employees shall be granted 2}i days ^leave for each
month of service begini|ing January 1, 1936. For leave purposes, persons who are
appointed for definite periods of time not exceeding 6 months shall be considered
temporary employees.
"SEC. 15. Temporary employees who subsequently receive permanent or probational appointments in the same department without break in service shall be
entitled to annual leave at the rate of 2}i dsijs per month to the date of permanent
appointment and thereafter at the rate of 2}^ days per month. Of temporary
emplbyees, only those who subsequently accept'permanent appointments without
break in service may be credited with accumulated leave earned prior to January
1,1936.
' "SEC. 16. Nothing in these regulations shall be construed to prevent the
continuance of any leave differential existing prior to January 1, ,1936, for the
benefit of employees of the Federal Government stationed without the continental
limits of the United States.
"SEC. 17. The annual leave authorized by these regulations shall, except as to
temporary employees, be recorded and administered on a calendar-year basis.
"SEC. 18. The heads or governing bodies of the various governmental agencies
to which this Executive order applies shall be responsible for the proper administration of these regulations insofar as they pertain to the granting of annual leave
to employees under their respective jurisdiction; and they may, within the limits
authorized by law, issue such regulations as are not inconsistent with these regutipns.
"Part I I I . Employees excepted
"SEC. 19. These regulations shall not apply to:
"(a) Teachers and librarians of the public schools of the District of Columbia.
• "(b) Officers and employees of the Panama Canal and Panama Railroad on the
Isthmus of Panama.
"(c) Temporary employees engaged on construction work at hourly rates.
"(d) The Postmaster General and officers and employees in or under the Post
Office Department, except those serving in the departmental service and in the
mail equipment shops.
REPORT OF THE' SECRET/VRY OF T H E TREASURY
281
"(e) Persons paid security or prevailir.g wages from funds allocated by t h e
Works Progress Administration on State, municipal, or other public b u t nonFederal projects, or on a Federal project; Provided, T h a t annual leave shall be
granted in accordance with these regulaticms to employees in t h e central office of
t h e Works Progress Administration in t h e District of Columbia and a t district a n d
local headquarters, and to other employees in administrative or clerical positions
who receive other t h a n security or prevailing wages, as prescribed in Executive
Order No. 7046 of M a y 20, 1935.
"(/) Employees not required to be continuously employed during regular tour
of duty, such as: (1) Employees who are paid only when actually employed;
(2) per diem or per hour employees engaged in an emergency who m a y be employed
for more t h a n one 7- or 8-hour shift within 24 hours during t h e emergency;
(3) part-time or i n t e r m i t t e n t employees; (4) persons engaged under contract;
(5) employees engaged temporarily for less t h a n a m o n t h on a piece-price basis;
(6) employees who are paid a t hourly rates b u t who are not engaged on construction work, such as mechanics, skilled lal^orers, and others engaged in various
services on maintenance, repair, clean-up work, etc., where employment is more
or less i n t e r m i t t e n t a n d not on a regular a:id continuous basis; and (7) employees
paid on a fee basis, such as physicans, surgeons, and other consultants.
" P a r t I V . Ratification—Relocation—Effective date
" S E C . 20. All t e m p o r a r y regulations issued by t h e heads of the various departments and independent establishments under a u t h o r i t y of Executive Order No.
7321 of M a r c h 21, 1936, are hereby ratified. All such t e m p o r a r y regulations a n d
all other regulations relating to the granting of annual leave are hereby revoked
insofar as they are inconsistent with these regulations.
" S E C . 2 1 . These regulations shall be effective as of July 1, 1936.
FRANKLIN D . ROOSEVELT."
T H E A B O V E E X E C U T I V E O R D E R N O . 7409 WILL GOVERN THE GRANTING OF ANNUAL
LEAVE TO EMPLOYEES OF THB TREASURY DEPARTMENT
Applications for leave for more t h a n 2* days m u s t be submitted in advance on
t h e form prescribed therefor. Applicationis for 2 days or less need not be m a d e on
this form, b u t t h e absence m u s t be noted cm t h e daily list of absentees.
Employees will be charged with the n u m b e r of days of leave granted on applications unless request is m a d e in writing for cancelation or modification thereof.
Absence u n d e r all classes of leave will be^ reported annually a t the close of each
calendar year to t h e Office of t h e Secretary, Division of Appointments.
Referring to P a r t I I , Sec. 12 of Executive Order No. 7409 above quoted, it is
hereby directed t h a t absence in excess of Ii) minutes shall be charged in multiples
of 5 minutes.
I n view of t h e provisions of section 6 of Executive Order No. 7409, t h e former
policy of theTreasury D e p a r t m e n t t o g r a n t an employee full current year allowance
of annual leave upon separation from t h e seirvice is hereby discontinued, a n d hereafter employees leaving the service will be entitled only to accumulated leave a n d
current accrued leave up to t h e date of separation.
SICK LEAVE Oli^ ABSENCE
Executive Order No. 7410, dated July 9, 1936, prescribing regulations relating
to sick leave of Government employees, is hereby promulgated for the information
of all concerned:
" B y virtue of a n d p u r s u a n t to t h e a u t h o r i t y vested in me by section 7 of t h e
act of March 14, 1936, entitled 'An Act to standardize sick leave and extend it to
all civilian employees' (Public No. 472, 74i}h Cong.), I hereby prescribe the following regulations which shall apply to all civilian officers and employees (hereinafter referred to as 'employee' or 'employees') of t h e United States, t h e District of
Columbia, and all corporations falling wittiin t h e provisions of section 6 of the
said act except those hereinafter excluded under p a r t I I of these regulations.
"Part I,
General provisions
" S E C . 1. Sick leave with p a y shall be granted to employees when t h e y . a r e incapacitated for t h e performance of their duties by sickness, injury, or pregnancy
and confinement, or when some member of the immediate family of t h e employee
282
REPORT OF THE SECRETARY OF THE TREASURY
is affiicted with a contagious disease and requires the care and attendance of the
employee, or when, through exposure to contagious disease, the presence of the
employee at his post of duty would jeopardize the health of others.
"SEC. 2. Except as provided in section 3 hereof employees shall be entitled to
sick leave at the rate of 1J4 days a month', and if such leave is not used it shall accumulate: Provided, That the total accumulation shall not exceed 90 days. Sick
leave accruing during any month of service shaU be available at any time during
the month.
"SEC. 3. In cases of serious disability or ailments, and when the exigencies of
the situation so require, sick leave may be advanced not in excess of 30 days in
addition to the unused sick leave that has accumulated to the credit of employees:
Provided, That such advances shall not be made to any employee more than 3 times
during any one calendar year; that every case of advanced leave shall be supported
by the certificate of a registered practicing physician or other practitioner; that
the total of such advances shall not exceed at any time 30 days beyond the accumulated sick leave; and that such advances shall be charged against sick leave subsequently accumulating.
"SEC. 4. When an employee applies for sick leave in excess of the amount accumulated to his credit and the circumstances do not justify such an advance, the
excess leave apphed for, if granted and used, shall be charged against any unused
annual leave to which the employee is entitled, or, if there is no unused annual
leave, the excess shall be charged as leave without pay, and such leave shall not
thereafter be converted into either sick or annual leave subsequently accumulating.
"SEC. 5. Sick leave shall not be advanced in an amount that would exceed the
total that would accumulate during the period from the date of the advance to the
termination of a limited appointment (not temporary in character) or one expiring
on a specified date.
"SEC. 6. Advance sick leave may be granted irrespective of whether the employee has to his credit unused annual leave.
"SEC. 7. Sick leave shall not be granted for slight illness or indisposition not
incapacitating the employee for the performance of his regular duties, or for absence for the purpose of being treated professionally by a dentist or oculist in his
office; but sick leave may be granted for detention at home or in a hospital by illness or disability due to causes as to which a dentist or oculist is qualified to certify.
"SEC. 8. Employees transferred or reappointed without break in service from
one permanent pbsition to another permanent position within the same or a different governmental agency shall be credited with accumulated sick leave and charged
with sick leave previously advanced in excess of that accumulated at the time of
transfer,
"SEC. 9. Sick leave shall not accumulate during a period of leave without pay
when such period is continuous for 30 days or more in any calendar year.
"SEC. 10. In the case of voluntary separation or removal for cause of an employee to whom sick leave has been advanced in an amount in excess of that accumulated, the employee shall refund the amount paid him for the period of such
excess, or deduction therefor shall be made from any salary due him or from any
deductions in the retirement fund to his credit. This provision shall not apply in
cases of death, retirement for age or disability, reduction of force, or when an employee who is not eligible for retirement is unable to return to duty because of disabihty, evidence of which shall be supported by an acceptable certificate from a
registered practicing physician or other practitioner.
"SEC. 11. Sundays, holidays, and non-work days within a period of sick leave
shall be charged as sick leave, except when immediately preceding or following a
period of sick leave, if the employee was in a pay status immediately prior to or
following such Sundays, holidays, or non-work days. For such days as per diem
and per hour employees would not be in a pay status, no sick leave shall be charged.
"SEC. 12. The minimum charge of absence on account of sickness, except on
Saturdays or on other days where 4 hours constitute a full work day, shall be onehalf day; additional fractions authorized on the same day shall be charged in
multiples of 1 hour. On Saturdays, or other days where 4 hours constitute a full
work day, 2 hours or less sick leave shall be charged as one-half day and more than
2 hours shall be charged proportionately.
"SEC. 13. Notification of absence on account of sickness shall be given as
soon as possible on the first day of absence. If such notification is not made in
accordance with this regulation, such absence may be charged to annual leave
or leave without pay. Application for sick leave shall be filed within 2 days
after return to duty.
" S E C 14. Application for sick leave for a period in excess of 3 days shall be
supported by the certificate of a registered practicing physician or other practi
REPORT OF THE SECRETARY OF THE TREASURY
283
tioner, except that in remote localities where such certificate cannot reasonably
be obtained, the applicant's signed statement as to the nature of the illness and
the reason why a certificate is not furnish(jd, may be accepted. For periods of
3 days or less, up to an accumulation of 12 days in any one calendar year, the
applicant's signed statement on a prescribed form may be accepted.
" S E C 15. When sickness continuing foi more than 5 days occurs within a
period of annual leave, the period of illness may, upon presentation of the certificate of a registered practicing physician or other practitioner, be charged as sick
leave and the charge against annual lea\e granted reduced accordingly. No
such charge shall be made for illness lasting for not more than 5 days. Application for such substitution of sick leave for annual leave shall be made within
2 days after the expiration of the annual-leave period.
" S E C 16. Sick leave may not be granted for a period immediately foUowing
a period of absence in a non-pay status, urless and until there has been a return
to actual duty, nor may such leave withouli pay be converted into sick leave.
" S E C 17. Temporary employees shall be entitled to 1>^ days of sick leave for
each month of service, but shall not be entitled to an advance of sick leave.
Sick leave accumulated during temporary appointment shall be credited to an
employee who receives a permanent appointment in the same governmental
agency without break in service but shall not be transferable elsewhere under any
circumstances. For sick leave purposes, those who are appointed for definite
periods of time not exceeding 6 months will be considered temporary employees.
" S E C 18. In the case of an employee who was not entitled to sick leave under
prior law, but who is now entitled theretD, sick leave as accumulated may be
substituted for leave without pay or annual leave taken because of illness between
January 1 aind March 14, 1936.
" S E C 19. Sick leave taken in excess of 1J4 days a month during the period
between January 1 and March 14, 1936, shall be charged against sick leave subsequently accumulating.
" S E C 20. Nothing in these regulations shall be construed to prevent the continuance of any sick leave differential existing prior to January 1, 1936, for the
benefit of employees of the Federal Governiaent stationed without the continental
limits of the United States.
" S E C 21. The heads or governing bodiesi of the various governmental agencies
to which this order applies shall be respoiisible for the proper administration of
these regulations insofar as they pertain to the granting of sick leave to employees
under their respective jurisdictions; and they may, within the limits authorized
by law, issue such regulations as are not inconsistent with these regulations.
**Part I I , Employees excepted
" S E C 22. These regulations shall not apply to:
"(a) Teachers and librarians of the public schools of the District of Columbia;
"(b) Officers and members of the police and fire departments of the District
of Columbia, other than civilian personnel;
"(c) Officers and employees of the Panama Canal and Panama Railroad on
the Isthmus of Panama;
"(d) Temporary employees engaged on construction work at hourly rates;
"(e) The Pos'tmaster General and officeis and employees in or under the Post
Office Department except those serving in the departmental service and in the
mail equipment shops;
"(/) Persons paid security or prevailiiig wages from funds allotted by the
Works Progress Administration on a Stattj, municipal, or other public but nonFederal project or on a Federal project: Provided, That sick leave shall be granted
in accordance with these regulations to employees in the central office of the
Works Progress Administration in the District of Columbia and at district and
local headquarters, and to other employeesi in administrative or clericalpositions
who receive other than security or prevailing wages as prescribed in Executive
Order No. 7046 of May 20, 1935;
"(g) Employees not required to be ccmtinuously employed during regular
tour of duty, such as: (1) employees who tive paid only when actually employed;
(2) per diem or per hour employees engaged in an emergency who may be employed for more than one 7- or 8-hour shift within 24 hours during the emergency;
(3) part-time or intermittent employees; (4) persons engaged under contract;
(5) employees engaged temporarily for less than a month on a piece-price basis;
(6) employees who are paid at hourly rates but who are not engaged on construction work, such as mechanics, skilled laborers, and others engaged in many
284
REPORT OF THE SECRETARY OF THE TREASURY
services on maintenance, repair, clean-up work, and the like, where employment
is -more or less intermittent and not on a regular or continuous basis; and
(7) employees paid on a fee basis, such as physicians and surgeons, and other
consultants.
"Part I I I . Ratification—Revocation—Effective date
"SEC. 23. All temporary regulations issued by the heads of the various departments and independent establishments under authority of Executive Order No.
7321 of March 21, 1936, are hereby ratified. AU such temporary regulations and
all other regulations relating to the granting of sick leave are hereby revoked
insofar as they are inconsistent with these regulations.
"SEC. 24. These regulations shall be effective as of July 1, 1936.
FRANKLIN D .
ROOSEVELT."
THE ABOVE EXECUTIVE ORDELI NO. 7410 WILL GOVERN T H E GRANTING OF SICK LEAVE
TO EMPLOYEES OF T H E TREASURY DEPARTMENT
Referring to part I, section 1 of Executive Order No. 7410 above quoted,
cases of personal illness or exposure to contagious diseases must be reported at
once to the office to which the employee is attached, which office in turn should
immediately report aU cases of contagious diseases to the chief clerk of the department, who will cause an investigation to be made. Proof of negligence or of
wiUful misstatement in reporting such exposure to contagion will be sufficient
cause for discipline.
The department will hold employees strictly accountable for the truth of statements appearing in applications for sick leave, and will investigate circumstances
coming to its attention which may appear to be inconsistent with such statements.
Proof of any willful misstatement or of any attempt of an employee to mislead
or deceive official superiors, directly or indirectly, in regard to an application for
-leave on account of sickness, will be sufficient cause for discipline.
The chief clerk of the department wiU, upon request from an administrative
officer, arrange for the detail of a proper officer to investigate and report facts in
any case.
Referring to part I, sections 3 and 4 of Executive Order No. 7410 above quoted,
advances of sick leave shaU be granted only when the absence equals or exceeds
5 days.
., The administrative office shall forward all requests for advanced sick leave
accompanied by the employee's statenient showing, whether or not he was continuously confined to home or hospital and under the immediate care of a registered practicing physician or other practitioner,, to the Secretary's office (Division
of Appointments) for approval.
All requests for accrued and advanced sick leave on account of enforced absence,
due to contagion, must be supported by a certificate from the local health officer,
.except that, in a community where there is no'health officer, a statement from
the attending physician will suffice.
Referring to part I, section 13 of Executive Order No. 7410 above quoted,
requiring the filing of application for sick leave within 2 days after return to
duty, it is hereby directed, where an employee is unable to obtain a certificate
from a registered practicing physician or other practitioner within the 2 days
prescribed, that the application be filed by the employee without the certificate
and the certificate be obtained and attached at a later date.
The following Executive order, issued by the President under date of July 17,
1930, is made a part of these regulations:
"SPECIAL LEAVES OF ABSENCE TO BE GIVEN DISABLED VETERANS IN NEED OF
MEDICAL TREATMENT
"With respect to medical treatment of disabled veterans who are employed in
the executive civil service of the United States, it is hereby ordered that, upon
the presentation of an official statement from duly constituted medical authority
that medical treatment is required, such annual or sick leave as may be permitted
by law and such leave without pay as may be necessary shall be granted by the
proper supervisory officer to a disabled veteran in order that the veteran may
receive such treatment, all without penalty to his efficiency rating.
"The granting of such leave is contingent upon the veteran's giving prior
notice of definite days and hours of absence required for medical treatment in
order that arrangements may be made for carrying on the work during liis
absence."
REPORT OF THE SECRETARY OF THE TREASURY
LEAVE
WITHOUT
285
PAY
Applications for leave without pay for 1 day or more must be submitted on the
form provided therefor and forwarded to ths secretary, Division of Appointments,
together with the recommendation of the iiead of the bureau, office, or division,
or chief of division. Secretary's office, in which the applicant is employed. Applications for less than 1 day need not be submitted on this form but the absence
must be noted on the daily list of absentees. In case an employee is absent
beyond the period fixed in these regulations for sick and annual leave, with no
probability of an immediate return to duty, the administrative officer having
jurisdiction will report the case to the secretary. Division of Appointments, giving
a full statement of the facts, with such recommendation as may be deemed proper.
Leave of absence without pay should be applied for in periods not exceeding 60
days at any one time, and such leave should be applied for in advance.
If leave without pay on account of sickness is applied for, a certificate of the
attending physician should be attached, otherwise a statement to that effect
wUl be accepted. If leave without pay is applied for, for any reasons other than
given above, a statement must be attached, showing the necessity for such leave.
Employees on leave of absence without pay all day on Saturday will be charged
a full day. Any absence on leave without jiay before 1 o'clock on a Saturday wUl
be computed on a 4-hour day basis, each hour being counted one-fourth of a day.
Where the employee reports for duty at t i e opening hour but leaves before the
closing hour, he should be given no benefit of the shorter day, pay for the portion
of the day worked to be computed on the basis of a regular working day. For
example, where the employee is absent the last hour he will be paid for threesevenths oi" three-eighths of a day, as the case may be, and will be charged and
deductions made for four-sevenths or five-eighths of a day. (See Comp.Gen.
Dec, vol. 11, p. 119.) When an employcie is granted leave without pay for a
Saturday or a day preceding a holiday and returns to duty at the opening hour on
the following Monday or day following the holiday, he will be in a nonpay status
for 1 day; but if he is absent without previously applying for the leave without
pay, he will be in a nonpay status for 2 d;a.ys.
MILITARY
LEAVE
Applications for military leave of not to exceed 15 days for aU military organizations (except the National Guard) in a ay one year must be made in advance
and be subsequently supported by a certificate of a competent officer of the organization authorized by law to the effect that the time served was in accordance
with General Orders, and state the provision of law under which such time was
served. Members of the National Guard of the District of Columbia may be
granted military leave (1) on all days of service which they may be ordered to
perform by the commanding general; and (2) on all days during which they shall
be engaged in field or coast-defense training ordered or authorized under the
provisions of the act of June 3, 1916.
C O U R T L]!3AVE
Employees who, in obedience to a subpena or direction by proper authority,
appear as witnesses for the Government in court proceedings are entitled, under
section 850, Revised Statutes, to their regular compensation while absent from
duty and to any actual and necessary expenses, but are not entitled to any
witness fees or mileage. Where an employee appears as a witness for a suitor
other than the United States the provisions of section.850, Revised Statutes, are
not applicable and the employee is not enttled to his regular compensation while
absent from his place of duty unless entitled to and granted annual leave for that
purpose. (See 4 Comp. Gen. 91.)
ABSENCE
WITHOUT
AUTHORIZED
LEAVE
An employee detained by causes beyond control, and unable to report for duty
at the opening hour, must notify the office in which employed to that effect not
later than 11 o'clock a. m., if practicable, on the first day of absence. Absence
from duty for any cause, without prior ]Dermission, must be satisfactorily explained, and if not satisfactorily explained, will be cause for deduction in salary
or other disciplinary measures.
HOURS OF
J;ERVICE
The act of March 3, 1931 (46 Stat. 1482), provides for Saturday half hoUday
for certain Government employees. The statute grants part of a holiday and
16109—38
20
286
REPORT OF THE SECRETARY OF THE TREASURY
not additional leave of absence. As to employees whose regular workday is 8
hours the statute grants a half holiday, and as to employees whose regular workday is 7 hours the statute grants a part holiday of 3 hours. Where employees for
special public reasons are required to work more than 4 hours on any Saturday,
the act provides for "an equal shortening of the work on some other day." In
such case the employee's regular working time on some other day wiU be reduced,
without loss of pay or leave time, by a period equal to the time such employee
was required to work in excess of 4 hours on the Saturday, except that such reduced working time shall not be for a period greater than the difference between
4 hours and the number of hours that constitute his regular workday. The
Saturday overtime must be taken by the shortening of some day at the earliest
time the public business will permit. Saturday overtime may not be used for
the purpose of accumulating annual leave.
ADMINISTRATION
Employees must be at their desks or posts of duty at the opening hour and
continue on duty until the closing hour. A recess of half an hour for luncheon
will be aUowed—from 12:30 to 1 p. m.—unless other hours have been authorized:
Provided, however, That administrative officers may vary the luncheon period of
certain employees where the public business requires it.
The beginning of the luncheon period and the close of the workday will, except
in cases governed by special luncheon or closing hours, be indicated by signal.
Until such signal is sounded, employees wUl remain at their desks or posts of
duty. Congregating at the exits of the building or in the corridors prior to the
sounding of the dismissal signal is strictly prohibited.
Clerks and employees will not be permitted to visit one another or to receive
visits during office hours except on official business, and then only with the
knowledge and concurrence of their immediate official superiors. Frequenting or
loitering in the corridors of the building will not be permitted.
The practice of eating luncheon duririg the working period and in addition
thereto taking a half hour for other purposes, the reading of newspapers or other
unofficial matter, conducting private correspondence, attending to business
matters purely personal, using official time for private conversation and the discussion of unofficial subjects, loud and unnecessary talking and boisterous conduct of any nature, and smoking in the file rooms of the Department are positively
prohibited. Chiefs of divisions, sections, or rooms wUl be held strictly responsible
for the enforcement of this regulation, and violations thereof will be reported to
the chief clerk of the Department through the proper official channels.
ARRIVAL AND DEPARTURE DURING OFFICE HOURS
Any employee leaving the building where employed during dffice hours must be
provided with a pass on the prescribed form, completely filled out before being
signed by the officer having authority to excuse. The pass will cover absence as
indicated by the cross in the space provided therefor. It will be surrendered to
the guard, who will note thereon the time of departure and retain it. When the
employee returns, the time of entering the building will also be noted on the pass
by the guard. This pass wUl not be required of employees leaving the building on
official business who are provided with annual passes.
OFFICIAL PASSES
Annual passes may be issued by the chief clerk of the Department, li^on the
recommendation of the administrative officers in charge, as follows:
(1) Unlimited passes to those employees who are required to enter and leave
the Treasury Building or any of its annexes on public business at all hours on
week days, as weU as to enter and leave the Treasury Building on Sundays and
hoUdays.
(2) Limited passes to those emplbyees who are habitually required during
office hours to enter or leave the Treasury Building or any of its annexes on public
business.
(3) Luncheon passes to those endployees who are habitually required to take
their luncheon period a t some time other than the regular luncheon half hour.
The limited and unlimited passes are to be used solely on account of official
business and are not to be used in cases of late arrival of the holder in the morning or at the luncheon hour, nor when excused. Luncheon passes are to be used
solely when leaving and reentering the buUding in connection with lunch. The
REPORT OF THE SECRETARY OF THE TREASURY
287
passes should be countersigned by heads of iDureaus, offices, divisions, or chiefs of
divisions, Secretary's office, who wiU be held td strict accountability for their
proper use.
TARDINEI3S
An employee arriving after the opening hour and before the authorized luncheon
period, will be considered tardy unless wheD. reporting he presents to the guard a
written excuse (form 2158) issued the day previous, signed by an authorized
officer, or unless, where unavoidably detained by unforeseen circumstances, he
advises his office of such fact and is excused. Tardy employees will register their
names and the bureau, office, division, or division of Secretary's office, in which
employed, on the form provided by the guard, and then report the fact of their
late arrival to the time clerks of their respective offices. The guard will in each
case enter the time of arrival on the slip.
Heads of bureaus, offices or divisions, and, chiefs of divisions. Secretary's office,
will maintain daily tardy records in their offices and report monthly to the chief
clerk of the Department the names of employees who have been tardy 10 times
during the year. The chief clerk wUl see that these employees are officially
reprimanded and warned to improve their records. AU subsequent cases of tardiness in excess of 10 times during the year will also be made on the monthly report
in order that disciplinary measures may be taken, the chief clerk to submit all
such cases to the Secretary together with bis recommendation as to appropriate
action.
An employee leaving during the luncheon period and not returning untU after
1 p. m., will fill out and sign the form provided by the guard, who will enter the
time of return thereon, unless the employee itias previously filed a pass authorizing
absence from the building after 1 p. m., in which case the time of return will be
entered thereon by the guard. Employees not regularly excused, who are late in
reporting at the close of the luncheon period, must report that fact to their
respective time clerks.
The forms above referred to which are collected by guards will be distributed
to the several time clerks before 10 a. m. of the following day for check against
the daily time reports of their respective bureaus, offices, and divisions.
So much of these regulations as relates to arrival and departure during office
hours applies only to employees in building;s where guard forces are maintained.
In buildings without guards, employees who are necessarily detained at the
regular luncheon period wUl be excused iior luncheon by the persons having
authority to excuse.
Heads and deputy heads of bureaus, offices, and divisions, and chiefs and
assistant chiefs of divisions in the Secretary's office, are not required to observe
the luncheon period, nor are they required to use passes when departing from or
entering the building. The chief clerk of the Department wUl supply a list of
the names of such officials for the information of the guards on duty at the several
entrances.
GENERAL PRC VISIONS
These regulations*apply to all branches cif the Treasury Department in Washington and to all eniployees thereof, except Presidential officers, and commissioned officers of the Coast Guard and Public Health Service.
Annual leave of absence or leave without pay for less than 1 day of employees
who are reqi ired by departmental regulations to work 8 hours per day wiU be
charged at the rate of one-eighth of a day for each hour of absence; of employees
who are required to work 7 hours per day, at the rate of one-seventh of a day for
each hour of absence. On Saturdays the computation wiU be on the basis of a
4-hour day.
Willful neglect on the part of any official or employee in charge of a daily time
sheet or record to report the absence of any employee wiU be considered sufficient
grounds for discipline.
Heads of bureaus, offices, or divisions, and chiefs of divisions, Secretary's
office, wUl be held to strict official responsibUity for the enforcement of these
regulations.
H.
MORGENTHAU,
Jr.,
Secretary of the Treasury»
288
REPORT OF T H E SECRETARY OF T H E TREASURY
Exhibit 44
Supervision of bureaus, offices, and divisions of the Treasury Department
[Department Circular No. 244. Chief Clerk.]
TREASURY DEPARTMENT,
Washington, February 1, 1937.
1. T h e following assignments of bureaus, offices, and divisions of t h e Treasury
D e p a r t m e n t are hereby ordered, effective F e b r u a r y 1, 1937:
T h e Secretarv of t h e Treasury:
1. T h e Finances.
2. Office of t h e General Counsel:
(a) Legal Division.
3. Division of Research a n d Statistics.
4. Procurement Division:
(a) Public Buildings Branch.
(b) Branch of Supply.
5. Secret Service Division.
6. Federal Alcohol Administration.
T h e Under Secretary of t h e Treasury:
1. Bureau of Internal Revenue.
Fiscal Assistant Secretary:
1. Commissioner of Accounts and Deposits:
(a) Division of Bookkeeping a n d W a r r a n t s .
(b) Division of Disbursement.
(c) Division of Deposits.
(d) Section of Surety Bonds.
2. Commissioner of the Public Debt:
(a) Division of Loans a n d Currency.
(b) Office of the Register of t h e Treasury.
(c) Division of Public D e b t Accounts and Audit.
(d) Division of Paper Custody.
3. Office of t h e Comptroller of t h e Currency.
4. Office of t h e Treasurer of t h e United States.
5. Bureau of Engraving and Printing.
6. Bureau of t h e Mint.
7. Division of Savings Bonds.
Assistant Secretary in. Charge of Customs, Coast Guard, and Narcotics:
^1. Bureau of Customs.
2. United States Coast Guard.
3. Bureau of Narcotics.
Assistant Secretary in Charge of Public Health:
1. Bureau of t h e Public Health Service.
Administrative Assistant to t h e Secretary:
1. Chief Clerk of the D e p a r t m e n t .
2. Division of Appointments.
3. Division of Printing.
4. Secretarj^'s Correspondence Division.
2. T h e Administrative Assistant to the Secretary will act as Budget Officer of
the Treasury, and is authorized to act, for a n d by direction of the Secretary of t h e
Treasury, in a n y branch of the. D e p a r t m e n t .
3. I n t h e absence of the Secretary, t h e Under Secretary will act as Secretary
of the Treasury. I n t h e absence of both the Secretary a n d the Under Secretary,
the Fiscal Assistant Secretary will act as Secretary. I n the absence of t h e
Secretary, t h e Under Secretary, a n d the Fiscal Assistant Secretary, t h e senior
Assistant Secretary present will act as Secretary.
4. T h e Bureau of the Budget of the Treasury operates under t h e immediate
direction of the President.
5. This circular supersedes Treasury D e p a r t m e n t Circular No. 244, dated
November 25, 1935.
H E N R Y MORGENTHAU,
Jr.,
Secretary of the Treasury.
289
REPORT OF T H E SECRETAR"5r OF T H E TREASURY
Exhibit 45
Orders relating to organization and procedure in the Treasury Department
T R E A S U R Y D E P A R T M E N T O R D E R ITO. 14, N O V E M B E R 16, 1936
1. T h e following areas are hereby designated Treasury districts, with headq u a r t e r s as indicated:
Treasury
district
number
Location of headquarters
Area included
Maine, Vermont, New Hampshire, Massachusetts, Connecticut, Rhode Lsland.
New York, Puerto Rico
Pennsjdvania
New Jersey, Delaware
Maryland, District of Columbia, ^^irginia.
West Virginia, N o r t h Carolina.
South Carolina, Georgia, Florida, Alabama.
K e n t u c k y , Tennessee
Ohio, Michigan
Wisconsin, Illinois, Indiana
Mississippi, Louisiana,- Texas
Missouri, Kansas, Oklahoma, Arljansas..
Minnesota, N o r t h D a k o t a , South D a k o t a ,
Iowa, Nebraska.
Colorado, New Mexico, Wj^oming, U t a h ,
Arizona.
California, Nevada, Hawaii
Washington, Oregon, Idaho, M o n t a n a ,
Alaska.
7
8
9
10
11
12
13
14
15
Boston, Mass.
New York, N . Y.
Philadelphia, P a .
Newark, N . J.
Baltimore, M d .
Atlanta, Ga.
Louisville, K y .
Cleveland, Ohio.
Chicago, 111.
New Orleans, La.
K a n s a s City, M o .
St. Paul, Minn.
Denver, Colo.
'^
San Francisco, Calif.
Seattle, Wash.
2. T h e bureau officers in charge of t h e T r s a s u r y law-enforcement agencies will
arrange t h e field districts of these agencies to conform t o t h e Treasury districts
herein designated, except t h a t t h e area i n c l i d e d in a n y two or more contiguous
Treasury districts, in whole, m a y , in t h e case of t h e Customs Agency Service, be
•consolidated to form a single Customs Agercy district; a n d except further t h a t ,
.subject t o approval by t h e Secretary in each (sase, h e a d q u a r t e r s offices m a y , for t h e
time being, be maintained a t places other t h a n those n a m e d above.
3. Districts established p u r s u a n t t o this order in t h e several field organizations
of t h e Treasury D e p a r t m e n t will.be designated numerically to correspond t o t h e
n u m b e r s assigned t o t h e respective Treasury districts. Any Customs Agency
district which embraces t h e area contained in two or more contiguous Treasury
•districts, will be designated by t h e n u m b e r assigned to t h e Treasury district in
which t h e principal headquarters office is located.
4. This order will be effective December 1, 1936.
H E N R Y MORGENTHAU,
.
Jr.,
Secretary of the Treasury.
T R E A S U R Y D E P A R T M E N T O R D E R N O . 15, A P R I L 30, 1937
P u r s u a n t t o t h e a u t h o r i t y vested in m e as head of t h e Treasury D e p a r t m e n t ,
and.by section 161 of t h e Revised S t a t u t e s of 1873 (U. S. C. title 5, sec. 22), subject
to t h e provisions of t h e a c t of J u n e 4, 1897, 30 Stat. 18 (U. S. C. title 31, sec. 171), I
liereby Order
T h a t , effective J u n e 30, 1937, jurisdiction over, a n d responsibility for t h e
activities of, t h e entire guard force.of t h e T i e a s u r y D e p a r t m e n t , operating in t h e
Main Treasury Building, t h e Bureau of Eng],'aving a n d Printing, a n d elsewhere in
Washington, D . C , shall be vested in t h e Ctief, Secret Service Division.
HENRY MORGENTHAU,
Jr.,
Secretary of the Treasury.
290
REPORT OF THE SECRETARY OF THE TREASURY
TREASURY DEPARTMENT ORDER NO. 16, MAY 20, 1937
On and after this date the Chief Clerk of the Treasury Department is relieved of
the responsibility for the maintenance and operation of Treasury buildings in the
District of Columbia.
There is hereby established the Office of Superintendent of Treasury Buildings.
The Superintendent of Treasury Buildings will have direct responsibility for the
maintenance and operation of all Treasury buildings in the District of Columbia
except the Bureau of Engraving and Printing. All personnel in the maintenance
and operating groups will perform their duties under his supervision and direction
and he will report directly to the Administrative Assistant to the Secretary.
HENRY MORGENTHAU,
Jr.,
Secretary of the Treasury,
TREASURY D E P A R T M E N T ORDER NO. 17, M A Y 29, 1937
In view of the necessity as a matter of sound public policy that contacts between
employees of the Treasury Department and the tax-paying public be absolutely
devoid of any element of obligation, it is hereby ordered that any solicitation of
financial aid of or sale of tickets to persons outside the Federal service for the
benefit of any organization or association, the personnel of which is composed of
Treasury Department employees, is prohibited.
It is further ordered that no publication of any such organization or association
shall contain any commercial advertising matter whatsoever, and that publication
thereof must be at the direct expense of such organization or association.
HENRY MORGENTHAU,
Jr.,
Secretary of the Treasury.
MISCELLANEOUS
Exhibit 46
Letter of the Postmaster General to the Secretary of the Treasury, dated November 11
1937, certifying extraordinary expenditures contributing to the deficiencies of
postal revenues for the fiscal year 1937, in pursuance of Public No. 316, Seventyfirst Congress, approved June 9, 1930 (46 Stat. 523)
WASHINGTON, D . C , November 11, 1937,
The Honorable the SECRETARY OF THE TREASURY.
MY DEAR M R . SECRETARY: In accordance with the provisions of the act of
June 9, 1930, embodied in section 260, Postal Laws and Regulations, the amounts
set forth below with respect to certain mailings during the fiscal year ended June
30, 1937, are certified to you in order that they may be separately classified on
the books of the Treasury Department in stating the expenditures made from
the appropriation to supply the deficiency of postal revenues:
(a) The estimated amount which would have bfeen collected at regular rates of postage on
matter mailed during the year by oflScers of the Government (other thanthose of the Post
OflQce Department) under the penalty privilege, including registry fees:
Postage-.._
$32,625,126.00
Registry fees, including surcharges1,466,801.00
(6) The estimated amount which would have been collected at regular rates of postage on
matter mailed during the year by:
1. Members of Congress under the franking privilege
$1,137,440.00
2. By others under the franking privilege
216.00
—
(c) The estimated amount which would have been collected during the year at regular
rates of postage on publications going free in the county
(d) The estimated amount which would have been collected at regular rates of postage on
matter mailed free to the blind during the year
(e) The estimated difference between the postage revenue collected during the year on
mailings of newspapers and periodicals published by and in the interests of religious, educational, scientific, philanthropic, agricultural, labor, and fraternal organizations, and that
which would have been collected at zone rates of postage.
(/) The estimated excess during the year of the cost of aircraft service over the postage
revenues derived from airmail..
{g) The estimated amount paid during the year to vessels of American registry for carrying the ocean mail in excess of what would have been paid at pound rates if carried in vessels
of foreign registry
Total
$34.081,927. OO
1,137,655. oa
647,383.00
171,627.00
269,848.00
6,151,977.93
9,136,917.80
61,687,336.73
Very truly yours,
JAMES FARLEY,
Postmaster General,
REPORT OF THE SECRETARY OF THE TREASURY
291
Exhibit 47
Executive Order No. 7641, June 22, 1937, transferring to the Secretary of the TreaS'
ury the functions delegated to the Secretary of Labor by Executive Order No. 2889
of June 18, 1918
By virtue of and pursuant to the author: ty vested in me by the act entitled
"An act to authorize the President to provide housing for war needs", approved
^ a y 16, 1918 (40 Stat. 550), as amended iind supplemented, it is ordered that
all powers, rights, privileges, and duties (including the power to execute deeds,
contracts, or other instruments of conveyance) delegated to the Secretary of
L^ibor by Executive Order No. 2889 of June 18, 1918, be, and they are hereby,
transferred to the Secretary of the Treasury to be exercised and performed by
the said Secretary through the Director of Procurement; and the Secretary of
Labor shall take such action as may be cecessary to carry out the purposes
of this order, including the transfer of all the stock of the United States Housing
Corporation, now held by the Secretary of Labor as trustee, to the Secretary of
the Treasury as trustee for the United States.
This order shaU supersede the said Executive Order No. 2889 of June 18, 1918,
and shaU become effective July 1, 1937.
FRANKLIN D . ROOSEVELT.
The
WHITE HOUSE,
June 22, 1937,
TABLES
293
EXPLANATION OF BASES USED IN TABLES
Figures in the following tables are shown on various bases, namely: (1) Daily
Treasury statements, unrevised (current cash); (2) daily Treasury statements,
revised (actual); (3) warrants issued; (4) checks issued; and (5) collections
reported by collecting officers.
Daily Treasury statements (unrevised) (receipts and expenditures).—The
figures shown in the daily statement of the United States Treasury are compiled
from the latest daily reports received by the Treasurer of the United States from
Treasury officers and public depositaries holding Government funds. The daily
Treasury statement, therefore, is a current report compiled from latest available
information, and, by reason of the promptness with which the information is
•obtained and made public, it has come into general use as reflecting the financial
operations of the Government covering a given period, and gives an accurate idea
of the actual condition of the Treasury as far as it is ascertainable from day to
day. This is known as "current cash basis", according to daily Treasury statements (unrevised). Table 3 (p. 320) shows receipts and expenditures on this basis.
The current assets and liabilities of the Treasury and the outstanding public debt
a,re also available on this basis.
Daily Treasury statements (revised) (receipts and expenditures).—On account
of the distance of some of the Treasury offices and depositaries from the Treasury,
it is obvious that the reports from all officers covering a particular day's transactions cannot be received and assembled in the Treasury at one time without
•delaying for several days the publication of the daily Treasury statement. It is
necessary, therefore, in order to exhibit the actual receipts and expenditures for
any given month or fiscal year, to take into consideration those reports covering
the transactions for the last few days of the month or fiscal year concerned which
have not been received in the Treasury until the succeeding month or fiscal year,
a,nd to eliminate receipts and expenditures relating to the preceding month.
After taking into consideration these reports, the revised figures indicate the
condition of the Treasury on the basis of actual transactions occurring during the
period under review. This is known as "the basis of daUy Treasury statements
(revised)."
It is not practical to delay the publication of the daUy Treasury statement in
order to include the later reports, as the difference between the revised and the
unrevised figures is not substantial. The unrevised figures as shown in current
daily Treasury statements are the basis for the Budget estimates submitted to
Congress by the President. The revised figures are of no practical use except
to enable the use of a true General Fund balance on the monthly statement of
the public debt of the United States and to bring the daily Treasury statement
figures into agreement with the figures based on warrants issued. The table on
page 217 shows total receipts and expenditures on this basis. The current assets
and liabilities of the Treasury (p. 447) and the outstanding public debt (pp. 394r414) are also available on this basis.
Warrants issued (receipts).—Section 305 of the Revised Statutes provides that
receipts for all moneys received by the Treasurer of the United States shall be
endorsed upon warrants signed by the Secretary of the Treasury, without which
Warrants, so signed, no acknowledgment, for money received into the Public
Treasury shall be valid. The issuance of warrants by the Secretary of the
Treasury, as provided by law, represents the formal covering of receipts into
the Treasury.
Certificates of deposit covering actual deposits in Treasury offices and depositaries, upon which covering warrants are based, cannot reach the Treasury
simultaneously, and for that reason all receipts for a fiscal year cannot be covered
into the Treasury by warrants of the Secretary immediately upon the close
of that fiscal year. It is necessary to have all certificates of deposit before a
statement can be issued showing the total receipts for a particular fiscal year on a
warrant basis. The figures thus compiled will agree with the figures compiled on
the basis of daily Treasury statements (revised). The details in table 1 (p. 298)
show receipts on this basis.
295
296
REPORT OF THE SECRETARY OF THE TREASURY
Warrants issued (expenditures).—The Constitution of the United States provides that no money shall be drawn from the Treasury but in consequence of
appropriations made by law. Section 305 of the Revised Statutes requires that
the Treasurer of the United States shall disburse the moneys of the United
States upon warrants drawn by the Secretary of the Treasury. As the warrants
are issued by the Secretary they are charged against the appropriate appropriations provided by law. Some of these warrants do not represent actual payments to claimants, but are merely advances of funds to be placed to the credit
of disbursing officers of the Government with the Treasurer of the United States
for the payment of Government obligations. The disbursing officer then issues
his check on the Treasurer in payment of such obligations. As far as the appropriation accounts are concerned, the warrants issued and charged thereto constitute expenditures, but it will be observed that such expenditures necessarily include unexpended balances to the credit of the disbursing officers. Statement of
the expenditures on a warrant basis from 1789 to 1915 is shown on page 346 of
this report.
Checks issued (expenditures).—This basis, more than any other, reflects the
real expenditures of the Government. Expenditures for a given fiscal year on
the basis of checks issued differ from the corresponding figures on the basis of
warrants in that the former include expenditures made by disbursing officers
from credits granted during the previous fiscal year, and exclude the amount of
unexpended grants remaining to their credit at the end of the fiscal year. The
basis of checks issued differs from the basis of the daily Treasury statement (revised) in that the former includes checks outstanding at the end of the fiscal
year, and excludes unpaid checks outstanding at the beginning of the fiscal year.
A detailed explanation of the basis of checks issued will be found on page 89 of
the Secretary's report for 1927. Table 2 (p. 305) shows expenditures on this
basis.
Collections reported by collecting officers (receipts).—Statements showing
receipts on a collection basis are compiled from reports received by the various
administrative offices from coUecting officers in the field, such as collectors of
internal revenue and collectors of customs. These reports cover the collections
actually made by these officers during the period specified. The collections are
then deposited in a designated Government depositary to the credit of the
Treasurer of the United States, which depositary renders a report to the Treasurer.
The reports of the collecting officers and the depositaries do not, of course,
coincide, for the reason that the collecting officers make collections during the
last few days of the fiscal year which are not deposited until after the close of the
fiscal year. On this account the two reports do not agree. The receipts are
reported on a collection basis merely for statistical purposes and to furnish information as to detailed sources of revenue. Classification of such items on the
basis of deposits has been found to be impracticable and uneconomical. Tables
9 and 15 (pp. 358 and 373) show receipts on a collection basis.
DESCRIPTION OF ACCOUNTS THROUGH WHICH TREASURY
OPERATIONS ARE EFFECTED
All receipts of the Government are covered into the General Fund of the Treas*
ury from which all expenditures are made. Receipts and expenditures, however,
are classified in the Treasury's records according to the class of accounts through
which operations are effected. Transactions are segregated in order to exhibit
separately those effected through general accounts, as contrasted with those
effected through special and trust accounts representing restricted or specially
allocated receipts and expenditures chargeable thereto. This classification was
first shown in published records for 1927 for the warrants and checks-issued
bases and on the daily Ti;easury statements beginning with the July 1, 1930,
issue, in order to conform to the practice of the Bureau of the Budget. In some
tables in this report, however, transactions in the three types of accounts are
combined for purposes of historical comparison. A brief general explanation of
the three classes of accounts is presented below.
.General accounts.—The principal sources of general account receipts are
income taxes, misceUaneous internal revenue, and customs duties. In addition,
a large number of miscellaneous receipts come under this head, including such
items as proceeds of Government-owned securities (except those which are applicable to public debt retirement), sale of surplus and condemned property, Panama"
Canal tolls, fees (including consular and passport fees), fines, penalties, forfeitures,rentals, royalties, reimbursements, immigration head tax, sale of public land.
REPORT OF THE SECRETARY OF THE TREASURY
297
tax on national bank circulation, interest on public deposits, seigniorage on
coinage of subsidiary silver and minor coins, etc. Moneys represented in the
general accounts may be withdrawn from the Treasury only in pursuance of
appropriations made by Congress. There are four classes of appropriations
payable through, the general accounts of the Treasury, namely: (a) Annual,
being those made each year in the several departmental supply bills and limited
for obligation during the fiscal year for which made; (b) continuing (no year)
being available until expended or until the object for which appropriated has been
accomplished, such as construction of public works; (c) permanent-specific, being
fixed amounts provided for each of a series of years by permanent legislation,
without annual action of Congress; and (d) permanent-indefinite, being indefinite
amounts (so much as may be necessary) provided by permanent legislation
without annual action of Congress, such as the indefinite appropriation to cover
interest on the public debt.
A statement of general account receipts and expenditures is, therefore, in the
nature of a general operating statement, and gives a picture of the relationship
between the general revenues of the Government and the operating expenditures
(including capital outlays and fixed charges) chargeable against them.
Special accounts.—Special account receipts may be generally defined as funds
received under special authorizations of law which may be expended only for
the particular purposes specified therei^. Special account receipts may not be
used for the general expenditures of ^the (government. The most important
items of receipts included under this heading, from the standpoint of amounts,
are those applicable to the retirement of the public debt. Other important
special account receipts are the reclamation fund under the Department of the
Interior, funds received for river and harbor improvements. Forest Service
cooperative funds, and proceeds from sales of ships, etc., available for construction
loans. There are many other special account receipts of lesser importance.
Trust accounts.—Trust account receipts represent moneys received by the
Government for the benefit of individuals or classes of individuals. Moneys
held in trust, being payable to or for the use of beneficiaries only, are not available
for general expenditures of the Government. There are several classes of trust
account receipts, the beneficiaries under which may be either individuals or
groups of individuals. The accounts msiy represent (a) moneys received directly
from or for account of individuals, as in the case of moneys received from foreign
governments or other sources in trust for citizens of the United States or others
under the act of February 27, 1896; (b) moneys collected as revenues and held
in trust, such as the proceeds of sales of Indian lands which are held as interestbearing funds for the benefit of Indian tribes; and (c) proceeds of grants from the
general accounts of the Treasury in pursuance of treaty or other obligations
such as the perpetual trust fund created for the Ute Indians under section 5 of
the act of June 15, 1880.
298
REPORT OF THE SECRETARY OF THE TREASURY
RECEIPTS AND EXPENDITURES
General tables
TABLE 1.-
-Details of receipts, by sources and accounts, for the fiscal year 1937
[Details on basis of warrants issued with totals adjusted to basis of daily Treasury statements (uofevised),
see p. 295. For explanation of accounts, see p . 296]
General and
special accounts
Source
REVENUE
Internal revenue:
. Income tajf.
Miscellaneous internal revenue..
Unjust enrichment tax
Taxes under Social Security Act...
Taxes upon carriers and their employees..
Processing tax on farm products
$2,148,663,875.99
2,193,178, 291.46
5, 934, 323. 63
256,181,188. 05
346, 531. 07
2,485.82
Total internal revenue, warrants-issued basis
Adjustment between warrants issued and cash receipts.
Total internal revenue, cash receipts—
Castoms:
Customs duties, warrants-issued basis.__
Adjustment between warrants issued and cash receipts..
Total customs duties, cash receipts
Miscellaneous:
Miscellaneous taxes:
Tonnage tax
Immigration head tax
Taxes, Canal Zone
:
_
487,358, 673.49
/, 002,074.69
1,633,903.32
-
Interest, exchange, and dividends:
Interest on deferred collections or payments
Interest on bonds of foreign governments under funding
agreements..
Interest on obligations of Reconstruction Finance Corporation
Interest on Government-owned securities, sale of war supplies
Interest on loans, Puerto Rico Hurricane Relief Commission. .
Interest on loans to States, municipalities, etc., Public Works
Administration
_
_
Interest on loans, Housing Corporation, Department of
Labor
Interest on loans. Rural Electrification Administration
Interest earned on Home Owners' Loan Corporation bonds
Interest on emergency crop loans, Farm Credit Administration (emergency relief)
Interest on homestead loans. Virgin Islands
Interest on farmers' seed loans
Interest on public deposits
Interest on advances to Colorado River Dam fund, Boulder
Canyon project
Interest on money loaned from construction loan funds (U.S.
Shipping Board Bureau)
Interest on miscellaneous obligations__
_
Interest on construction costs of public works in Colon and
Panama, War Department
Interest on loans, relief in stricken agricultural areas
Gain by exchange
Dividends on capital stock of Federal home loan banks
Dividends on capital stock of the Panama R. R. owned^by
the United States
_.
Dividends on shares of Federal savings and loan associations..
Interest collections of Resettlement Administration (emergency relief)
'_
Earnings of Dairy Marketing Corporation, Agriculture
Earnings from payments to Federal Reserve banks for industrial loans
_
-__Military and naval insurance, Veterans* Administration
(repayments to appropriations)
_.
Federal control of transportation systems (repayments to
appropriations)
Loans to railroads after termination of Federal control (repayments to appropriations)
Total interest, exchange, and dividends..
4,597,140,102.49
486,356,598. 90
Total miscellaneous taxes..
For footnotes, see p. 304.
4,604,306, 696.02
7,166,693.68
935,468. 28
77,706.97
2,647,078.57
144,711.44
618,492.67
22,255, 252.41
100,000.00
607.99
4,700,762.70
14,701.83
1', 778.04
18,184.46
21,874.26
2, 503. 55
198,499. 51
44, 270.14
700,000.00
585,412.08
18, 250. 60
43,149.18
233,160. 32
41,895. 20
1,693,096.99
700,000.00
1,790, 202. 95
923,128.15
10,973.23
227,447.69
1 485,165.88
1 4,086.82
1 71,480.30
35,549,088.37
Trust accounts;
REPORT OF THE SECRETARY OF THE TREASURY
299
TABLE 1.—Details of receipts, by sources and accounts, for the fiscal year 1937—Con.
Source
General and
special accounts
REVENUE—continued
Miscellaneous—C ontinued.
Fines and penalties:
Judicial.Customs Service
Immigration Service
Enforcement of National Prohibition Act (Judicial)
Navigation
^
Liquidated damages
Violating regulations and 8-bour law of 1912
,
Recovery oif value of oil in case of United States against Pan
American Petroleum Co
Canal Zone
Other
Total fines and penalties
Fees:
Agricultural Commodities Act
Alaska game laws
Board of Tax Appeals
Clerks, United States courts
Canal Zone
Commissions on telephone pay stations in Federal buildings
and rented post offices
Credit union
Consular and passport
Court of Customs and Patent Appeals
Court of Claims
Copying
j
Copyright
Immigration (registry earned)
—
Indian lands and timber
Land offices (including commissions)
Marshals, United States courts
Migratory-bird hunting stamps
Naturahzation (earned)
Naval stores grading
_
Navigation...
Patent (earned)
Purchase of discharges. Navy and Marine Corps
Purchase of Army discharges.Registration, securities and exchanges
Registration under Neutrality Act
Testing
^
Warehouse Act
Other
Total fees
Forfeitures:
Bonds of aliens, contractors, e t c . .
Bribes to United States officers
Customs Service
_
Judicial, miscellaneous. _
Under enforcement of National Prohibition Act
Unclaimed moneys and wages remaining in registry of courts.
Unclaimed merchandise
Unclaimed funds
Unexplained balances in cash account
Other
Total forfeitures
Assessments:
Colorado River Dam fund, Boulder Canyon project—
Deposits for establishing wool standards...,
On Federal and joint stock land banks, and Federal intermediate credit banks for expenses of examinations. Farm
Credit Administration
On Federal home loan banks and receipts from other sources
for salaries and expenses, Federal Home Loan Bank Board.
Furlough and compensation deductions and vacancy savings
(special deposit accounts)
Immigration Service overtime
Overtime service, marine inspection and navigation.
Total assessments
For footnotes, see p. 304.
$574,405.55
208,793.88
65,139.01
30,410.16
45,331.08
305,372.38
12,731.19
3,100,000.00
14,107.45
32,086.94
4,388,377.64
124,278. 75
24,226. 57
46,115. 57
2,665, 706.81
2,454.65
82, 063.77
40, 594.44
4,023, 361.21
3, 106.95
5, 217.00
77, 022. 01
280, 435.10
104, 290.00
119, 429. 75
121, 796.12
284, 098.05
616, 473.00
1,865, 061.25
9, 314.88
202, 777.16
4, 356,331.19
218.95
706, 553.62
1,196,676. 25
15, 400 00
86, 407.39
12, 015.00
28, 749.24
17,100,174.5
649, 530.84
6,194. 50
434,783.86
30,105.48
6,918.89
262,857.69
26,666. 21
1,724. 50
4, 560.25
4,089.50
1,327,431.72
402,825.74
26,652.00
715,769.16
968,488.36
» 658.78
208,987.23
27,552.61
2,350,933.78
Trust accounts
300
REPORT OF THE SECRETARY OF THE TREASURY
TABLE 1.—Details of receipts, by sources and accounts, for the fiscal year 1937—Con.
General a n d
special accounts
Source
T r u s t accounts
EEVENUE—continued
M iscellaneous—C ontinued.
Reimbursements:
Construction charges (Indian Service)
._
Collections under Grain Standards Act.
Collections under Cotton Standards Act
__
Cost of administration, Federal Power A c t . . .
By District of Columbia for advances for acquisition of lands
under sec. 4, act May 29,1930, as amended
Maintenance of District of Columbia inmates in Federal
penal and correctional institutions..:
".
Refunds on empty containers
_
Expenses, miscellaneous
By contractors for excess cost over contract price
Expenses of redeeming national currency
Inspection of food and farm products
Gasoline State tax
Government property lost or damaged
Hospitalization charges and expenses
Expenses of international service of ice observation and
patrol
Costs from estates of deceased Indians
_
Maintenance, operation, and irrigation charges, irrigation
systems, Indian Service.Of appropriations made for Indian tribes
Reclamation fund, collections
. _
Settlement of claims against various depositors. _.
Surplus, general supply fund
.._ .
.
.
Other
Total reimbursements
$79,769. 30
45, 295. 62
• 176,113. 56
370,135.18
300, 000.00
247,955.14
20,355.15
278,460.01
195, 815. 34
184, 303.18
300,206.51
1, 547.19
1,130, 726. 24
94,859.62
126,367.18
50, 066.94
679, 618- 08
156, 543.93
2, 837, 607.10
67,706.32
155, 801.49
103, 630. 67
_
7, 602,883. 75
Gifts a n d c o n t r i b u t i o n s :
D o n a t i o n s t o t h e U n i t e d States
M o n e y s received from k n o w n a n d u n k n o w n persons
R e t u r n of salary paid t o M e m b e r s of Congress
Other
253,842.17
7, 429. 39
500. 00
1, 635. 37
T o t a l gifts a n d c o n t r i b u t i o n s
Sales of G o v e r n m e n t property—products:
Scrap a n d salvaged materials, c o n d e m n e d stores, w a s t e
p a p e r , refuse, etc
Agricultural p r o d u c t s , including livestock a n d livestock •
, . products
C a r d indexes, L i b r a r y of Congress
Diairy p r o d u c t s _
Electric current, power p l a n t , Coolidge D a m , Ariz
Electric c u r r e n t
Gas from h e l i u m p l a n t s
H e a t , light, a n d p o w e r . . . . .
H i d e s , Federal S u r p l u s C o m m o d i t i e s CorporationIce
_
Occupational t h e r a p y p r o d u c t s
Photo duplications..
...
Public documents, charts, maps, etc
Stores
Seal a n d fox skins, a n d furs
Subsistence (meals, rations, e t c )
Water
U n d e r M i g r a t o r y B i r d Conservation A c t
Other
_
T o t a l sales of G o v e r n m e n t p r o p e r t v — p r o d u c t s .
Sales of services:
. Alaska Railroad fund receipts
Copies of hearings
E a r n i n g s b y U n i t e d States t r a n s p o r t s
E a r n i n g s from business operations .
F u m i g a t i n g a n d disinfecting
L a u n d r y a n d dry-cleaning operations
Livestock breeding service
Overhead charges on sales of services or supplies ( W a r a n d
Navy)
Q u a r a n t i n e charges (including fumigation, disinfection, inspection, etc., of vessels).
_
.
. . .
Q u a r t e r s , subsistence, a n d l a u n d r y service
R a d i o service
.—
For footnotes, see p. 304.
-„
263, 406. 93 ,
2,143, 955.13
$•
72, 600. 37
250,117.10
47,691.23
65,570.86
78, 871. 02
10,521.69
91,854.99
(3)
53,174. 62
46,741.09
9,748.47
469,309.48
4,762.88
283,986.09
92, 591. 42
62,706.65
55,306.96
88,698.17 1
3,928,208.22
2, 352.195. 52
10,554.57
26,578.34
8, 528. 32
38,119. 82
1,205,940.71
479.89
100,276.94
235,898.68
40,103. 46
34, 465. 52 1
REPORT OF T H E SECRETARY OF T H E TREASURY
301
T A B L E 1.—Details of receipts, by sources and accounts, for the fiscal year 1937—Con.
General and
special accounts
Source
Trust accounts
REVENUE—continued
Miscellaneous—Continued.
Sales of services—Continued.
Storage and other charges
Telephone and telegraph
___
Tolls and profits, Panama Canal
Work done for individuals, corporations, et al
Other..
.-
. . .
Total sales of services.
Ren ts and royal ties:
Rent of public buildings, grounds, etc
Rent of land
.
Receipts under mineral leasing acts
Royalties on oil, gas, etc
Annette Islands reserve, leases, Alaska.',
Rent of equipment
Rent of telegraph and telephone facilities
Rentals from property under foreclosure proceedings
Rent of water-power sites
_
Pipe line rentals
Rent of docks, wharves, and piers...
Other
Total rents and royalties
Permits, privileges, and licenses:
Alaska fund.
_
Business concessions
Immigration reentry permits (earned)
Licenses under Federal Water Power Act
Permits to enter national parks....
Pipe-line watier and power-transmission rights.
Receipts from public lands under Grazing Act, June 28,1934.
Other
—
-
$171, 320. 29
392,089. 17
24,106, 464. 24
60, 599. 69
30,188. 29
28, 813, 793. 45
252,449.78
153, 962.16
5, 685, 765. 61
987,410. 26
84, 614. 98
99,811.81
3, 695. 27
82,004. 46
165,380. 00
15, 000. 00
19, 906. 66
12,144. 98
7, 562,145. 97
304,848.44
233,825. 28
197, 020.17
310,354. 00
1, 058,010. 71
12,440.17
500, 547. 55
11,442. 56
Total permits, privileges, and licenses
2, 628,488.88
Mint receipts:
Profits on coinage, bullion deposits, etc
Seigniorage
4,813,611.88
48, 529,612. 87
Total mint receipts
Forest reserve fund
53,343,224. 75
'4,956,947.87
Deposits, postal funds, Canal Zone
United States share of District) j Columbia receipts
Total miscellaneous revenue receipts
Total revenue receipts, warrants-issued basis..
400,411. 56
103, 663. 42
172, 966, 259. 46
5, 264, 631,628. 97
NONREVENUE
Miscellaneous—Realization upon assets:
Repayments of investments:
Federal control of transportation systems (repayments to
appropriations)
Lotos to railroads after termination of Federal control, etc.
(repayments to appropriations)
Repayment of principal on account of loans to States, municipalities, etc., Public Works Administration
Repayments of capital stock of Second Export-Import Bank
of Washington, D. C
Repayment of principal on emergency crop loans, Farm
Credit Administration
Collections of loans, Federal Housing Administration
_-.
Repayment of subscriptions to preferred shares. Federal
savings and loan associations
Principal of bonds of foreign governments under funding
agreements
Principal payments on low-cost houses, Virgin Islands
Principal payments on loans, Puerto Rico Hurricane Relief
Commission
Excess proceeds of sale of cotton acquired by Secretary of
Agriculture, act June 19, 1934
.
For footnotes, see p. 304.
16109—38
21
201,902. 21
147,500.00
1,896,320. 21
250, 000. 00
9,823,240.14
586, 694. 32
1,037,878. 87
72, 093. 83
775. 02
9,290.13
1, 300,000.00
(4)
302
REPORT OF THE SECRETARY OF THE TREASURY
TABLE!.—Details of receipts, by sources and accounts, for the fiscal year 1937—Con.
Source
General and
special accounts
T r u s t accounts
NONREVENUE—continued
Miscellaneous—Realization upon assets—Continued.
Repayments of investments—Continued.
Payments for marketing excess tobacco. Agricultural Adjustment Administration
Repayment of principal on account of loans, Rural Electrification Administration
.
Sale of chattels. Resettlement Administration (emergency
relief)
..Repayment of principal on account of loans. Resettlement
Administration
Repayment of loans to veterans for transportation
Return of advances made to reclamation fund
Construction costs of public works in Colon and Panama
Other
Total repayments of investments
Sales of public lands
-
Sales of Government property:
Capital.equipment, includes trucks, horses, cars, machinery,
furniture and fixtures, and other capital equipment
Land and buildings..
Lands, etc., on account of military-post construction fund...
Office material, etc. (Procurement Division)
Proceeds of sales, building, or purchase of vessels for the Coast
Guard
Proceeds of sales, rebuilding and improving Coast Guard
stations
.
Coos Bay wagon-road grant fund...
Oregon and California land-grant fund
-•
Ordnance material (war)
War supplies
Other
Total sales of Government property
Miscellaneous:
Trust ac4X)unts:
Government life insurance fund
Civil service retirement fund:
Contributions
Interest on investments
Foreign service retirement fund:
Contributions
Interest on investments
Canal Zone retirement fund:
Contributions
_.
Interest on investments
Adjusted service certificate fund:
Interest on investments
Interest on loans
Alaska railroad retirement and disability fund
Deposits, unearned proceeds of sale of publications. Superintendent of Documents, Government Printing Office
Deposits of unclaimed moneys of former patients, Veterans'
Administration hospitals
Deposits, general post funds, national homes, Veterans'
Administration
Deposits, funds due incompetent beneficiaries. Veterans'
Administration...
Deposits, personal funds of patients, Veterans' Administration
Relief and rehabilitation, and interest on investments.
Employees' Compensation Commission...
Public works housing receipts (Federal Emergency Administration of Public Works)
Proceeds from sale of hides (Federal Surplus Commodities
Corporation)..
_
Deposits, Resettlement Administration, assets of State
rural rehabilitation corporations
Deposits, resettlement and rural rehabilitation projects.
Resettlement Administration
Deposits, unearned fees and other charges, sec. 8a (4), Commodity Exchange Act
Deposits of undistributed cotton price adjustment payments.
Advances, fox and fur seal industries, Pribilof Islands
Deposits, special statistical work, Commerce, Census
For footnotes, see p . 304.
$1, 749,450. 76
401.19
3,913.93
22, 089,409.42
35, 285.81
(»)
55, 079.84
9,148.04'
39,268,383.72
71, 218. 39
259, 914. 96
873,539.77
945, 553. 57
30,190.88
48, 575. 58
3,839.62
106, 896.49
600,879. 49
183,867.62 •
124, 795. 67
5, 766. 55
3,183,820. 20
$93,927,455.47
34,986,707 50
13,012,960.98
190 926 02
124,872. 23
608,491 78
129 667 64
4,134,701.88
2 102 10
109, 421. 25
733,171.04
357.42
102,898 17
115,465.63
2,149, 810. 25
18. 569 54
212, 530 13
6,717,231.89
9,812,820.72
214, 560. 52
18, 304. 00
9,313. 74
70, 275. 00
11, 546. 02
REPORT OF THE SECRETARY OF THE TREASURY
30^
TABLE 1.—Details of receipts, by sources and accounts, for the fiscal year 1937—Con.
Source
General an d
special accounts
Trust accounts
NONREVENUE—continued
Miscellaneous—Continued.
Trust accounts—Continued.
Deposits, unearned fees. Patent Office..
Personal funds of patients, St. Elizabeths Hospital
Pension money, St. Elizabeths Hospital...
Deposits, public survey work
_
Deposits, unearned proceeds, lands, etc.. General Land
Office
Indian moneys:
Proceeds of labor, act June 13,1930
Proceeds of labor, agencies, schools, etc—
Oil and gas leases, etc., Osage Reservation, Okla
Proceeds of sales and leases of Indian lands, etc
Deposits of individual Indian moneys
Deposits of commissary funds, Federal prisons...
Deposits of funds of Federal prisoners
Deposits of collections, clerks of United States district courts..
Deposits of collections. United States marshals
Deposits, unearned immigration (reentry) permit fees, Department of Labor
Deposits, unearned immigration (registry) fees, Department
of Labor
Deposits, unearned naturalization fees, Department of Labor.
Naval fines and forfeitures—
Naval hospital fund...Profit from sale of ships' stores, Navy
Pay of the Navy, deposit fund
Pay of the Marine Corps, deposit fund
Proceeds, civic fund, naval reservation, Olongapo
Settlement of claims. United States and Panamanian Claims
Commission, under conventions July 28,1926, and Dec. 17,
1932, between the United States and Panama
Settlement of claims. Special Claims Commission, under
article 2 of convention, Apr. 24,1934, between the United
States and Mexico
Settlement of claims. Special Claims Commission, under
article I of agreement, Oct. 25, 1934, between the United
States and Turkey
Deposits, unearned passport and application fees, Department of State
Deposits for expenses, Treasury Department, enforcement
Title III, National Prohibition Act, as amended, Puerto
Rico and Virgin Islands
Proceeds of assets of Liberty Loan Associations of banks and
trust companies of New York
Interest on investments, old-age reserve account...
Deposits of personal funds and earnings of inmates. Narcotic
Farm, Public Health Service
Internal Revenue, Puerto Rico collections
Internal Revenue, coconut oil tax, Philippine Islands
Internal Revenue, Philippine Islands, collections
Additional income tax on railroads in Alaska
Customs duties, Philippine Islands
Tonnage tax, Philippine Islands
Withheld pay, Army, maintenance. United States Soldiers*
Home
Pay of the Army, deposit fund.
Soldiers' Home permanent fund
Proceeds from estates of deceased soldiers
Civilian Conservation Corps, withheld cash allowances
Proceeds, estates of deceased enrolled members, Civilian
Coaservation Corps.
Deposits of unclaimed moneys of individuals whose whereabouts are unknown
Other trust accounts
^
:
Library of Congress trust fund, permanent loan account
Library of Congress gift fund„
Library of Congress trust fund, investment account
Interest on Library of Congress trust fund, investment account
Deposits of miscellaneous contributed funds. Department of
Agriculture
Forest Service cooperative work
...1
Interest on endowment fund, preservation of birthplace of
Abraham. Lincoln
For footnotes, see p. 304.
$39, 768. 68^'
180,174. 70,
40,316.07
12,693.74
959,562.48
1, 245, 686. 58
248,179.19
•4,178,314.76
1, 258, 940. 58
13.60
328, 570.15
844, 508.32
1,618,347. 91
6 S7,849.8&
2,226. m
25,950. 00^
8 266,432.68^
243, 622.83:
1, 290,004. 50<
287, 937. 20'
77,892. 92.'
182,464.81<
26,553.64^
111, 246. 2 5
622,240.1(^
100,000. OO-"*
314,941.90
43,000.00'
398,306. 56
2,261,810.97"
62,691.67221.47
18,127,809.60>
745,076. 73^
14, 066. 664, 566. 59^11,317.84
456,219. m
2,071, 564. 67396, 501. 71
46,169. 97
1,890,078.10"
«1,141.346,160.91
93,401.85
287,992. 61
111, 783.80-*
12,863.7049,429.37
141, 651. 51:
801, 692. 81
2,040. 0 0
.304
REPORT OF THE SECRETARY OF THE TREASURY
TABLE 1.—Details of receipts, by sources and accounts, for the fiscal year 1937—Con.
Source
Generaland
special accounts
Trust accounts
NONREVENUE—continued
Miscellaneous—Continued.
Trust accounts—Continued.
Receipts, Welfare and Recreational Association, of public
buildings and grounds....
0
Contributions to reclamation fund
Donations, National Park Service for lands, etc
1.Contributions for roads, bridges, and related works, Alaska..
Contributions and interest on investments. National Institute of Health, conditional gift fund
Bequest of Maj. Gen. Fred C. Ainsworth to Walter Reed
General Hospital
Interest on investments, bequest of Maj. Gen. Fred C. Ainsworth to Walter Reed General Hospital
Advance of funds for river and harbor improvements
Contributions for river and harbor improvements
Contributions for flood control
Contributions for sewerage system, etc.. Fort Monroe, V a . . .
$2, 220, 705. 73
1, 810, 276. 76
16, 533. 76
95, 696.33
3,693.05
10, 700.00
139.44
4, 200.00
226,037.02
2,083. 420. 40
18, 598. 50
Total trust accounts, exclusive of the District of Columbia..
215, 652, 577. 48
District of Columbia:
Revenue receipts:
District of Columbia share.
United States share
Nonrevenue receipts:
District of Columbia share.
34, 316, 326.36
4, 277, 575. 30
Total District of Columbia receipts..
Total nonrevenue receipts
—
Total miscellaneous revenue receipts..
Total miscellaneous revenue and nonrevenue receipts,
including Panama Canal and sales of public lands,
warrants-issued basis
Adjustment to basis of daily Treasury statements (unrevised)
-Total miscellaneous revenue and nonrevenue receipts,
including Panama Canal and sales of public lands,
cashbasis
—
Total receipts, warrants-issued basis:
Revenue receipts..
Nonrevenue receipts
Increment resulting from reduction in the weight of the gold
dollar
Seigniorage «.
Total receipts, warrants-issued basis.
Unemployment trust fund
Adjustment to basis of daily Treasury statements (unrevised).......
Total receipts on basis of daily Treasury statements (unrevised)
s 38, 593, 901. 66
$42, 523,422. 31
172,966, 259. 46
215, 489, 681. 77
6,146,146.29
254, 246,479.14
o
254, 246, 479. 14
1, 986,152. 97
210, 343, 535. 48
256, 232, 632.11
5, 264, 631, 628. 97
42, 523,422.31
254, 246,479.14
5, 307,155,051. 28
254, 246,479.14
1, 677, 296.04
39, 786,924. 30
5, 307,155,051. 28-
295, 710, 699.48
295, 653,140.08
5, 307,155,051. 28
591,363, 839.56
IS, 314,8I4. 41
771,775.68
5, 293, 840, 236.87
592,135, 615.14
1 Items of this character represent cash receipts credited to appropriation.
2 In addition to this amount, $1,057,885 was carried to the surplus fund of the Treasury as impounded
salary savings during the fiscal year 1937, under the provisions of the Economy Act of June 30,1932 (47 Stat.,
403, sees. 110 and 203, as amended by sees. 4 (a) and 8 of title II, act of Mar. 20,1933, and sec. 25 of title II, act
of Mar. 28,1934). There were no impounded salary savings or reserve for impounded salary savings for the
Postal Service during the fiscal year 1937.
3 See trust funds, following.
* Receipts of $40,896.19 included in other trust accounts, following.
8 The act of Apr. 1, 1932 (47 Stat., 78), and sec. 12 of the act of Mar. 3, 1933 (47 Stat., 1427), suspended
reimbursement of $1,000,000 annually to the General Fund of the Treasury until July 1, 1936. Susuension
extended to July 1,1938, by act of June 22,1936.
6 Debt item,'deduct.
7 The item of $103,663.42 United States revenue is shown under revenue receipts, p. 301.
• 8 Exclusive of $103,663.42 United States revenue from District of Columbia sources.
9 Represents seigniorage resulting from the issuance of silver certificates equal to the cost of the silver acquired under the Silver Purchase Act of 1934 and the amount returned for the silver received under the
President's proclamation dated Aug. 9,1934.
NOTE.—Excess credits and adjustments in italics to be deducted.
305
REPORT OF THE SECRETARY OF THE TREASURY
TABLE 2.—Details of expenditures, by organization units and accounts, for the fiscal
year 1937
[Details on basis of checks issued, totals adjusted to daily Treasury statements (unrevised), see p. 295. For
explanation of accounts, see p. 296]
Organization unit
General and
special accounts
Recovery a n d
relief accounts
T o t a l , general,
special, recovery, Trust accounts
a n d relief
accounts
LEGISLATIVE
U. S. Senate
House of Representatives
Legislative, miscellaneous' _- Architect of the Capitol
Botanic Garden
.
Library of Congress - - .
Government Printing Office
$3, 632,253. 60
8. 404,483. 61
136, 899.13
4,890,092. 44
101, 580. 99
2,439, 670.12
3, 470, 336. 72
$747,962.98
Total, legislative, checksissued basis
Adjustment between checks issued
and cash expenditures..
23,075, 316. 61
1,940. 74
Total, legislative, cash basis—
23,077, 257. 35
$3, 632, 253. 60
8,404, 483. 61
136,899.13
5, 638,055. 42
101, 580. 99
2, 785, 444. 77
3,470,336. 72
109, 647.16
498, 959.02!
1,093,737. 63
24,169,054. 24
608, 265. 38;
730. 75
2, 671. 49
1,094,468.38
24,171, 725. 73
345,774. 65
$340.8(y
(0
EXECUTIVE OFFICE
Executive Office, checks-issued basis
Adjustment between checks issued
and cash expenditures
Total, Executive Office, cash
basis
502,180.14
502,180.14
27.76
27.75
502,152. 39
502,152. 39
I N D E P E N D E N T OFFICES
Advisory Committee on Allotments
Alley Dwelling Authority
American Battle Monuments Commission
-- Board of Tax Appeals
California Pacific International Exposition
.
Central Statistical Board
Chicago World's Fair Centennial
Celebration
Civil Service Commission
Special deposit account
Commodity Credit Corporation
Electric Home and Farm Authority,
Inc.Emergency Conservation Work
Employees' Compensation Commission _.
Export-Import Banks of Washington...
Farm Credit Administration
Federal Alcohol Control Administration
Federal Civil Works Administration
Federal Communications Commission
Federal Coordinator of Transportation
.
. ..
Federal Deposit Insurance Corporation . .
Federal Emergency Administration
of Public Works
Federal Emergency Housing
Federal Emergency Relief Administration
-..
Federal Farm Mortgage Corporation
Federal Home Loan Bank Board
Federal Housing Administration .
Federal Power Commission
Federal Prison Industries Inc
Federal Reserve Board
Federal savings and loan associations
-
For footnotes, see p. 319.
1.08
1.08
(^)
187, 944. 21
515,999. 06
187,944. 21
515,999. 06
67, 649. 79
169, 758. 60
67, 649. 79
169, 756. 23
198. 72
2, 548,898. 83
2.37
11,857. 34
198. 72
2,560,756.17
424. 30;
(3)
117. 79
(^)
187.50
187.60
6, 231, 265. 22
10, 942,124.15
(')
4, 710,858. 93
22, 727. 94
(*)
(*)
4.66
(0
(*)
2,064,746. 23
2,064,746. 23
23,017. 74
7,495.00
2,010. 21
(4)
0
1,100,353.78
1,276,431. 68
181,768.19
91.26
14,601. 8 1
30, 512. 74
2,010. 21
(«)
(0
4.66
(*)
7, 700. 62
(«)
1,100,353. 78
31,4^9.9S-
1,284,132. 30
181,768.19
91.25'
1,509. 71
306
REPORT OF THE SECRETARY OF THE TREASURY
TABLE 2.—Details of expenditures, by organization units and accounts, for the fiscal
year 1937—Continued
Organization unit
General and
special accounts
Total, general,
Recovery and special, recovery, Trust accounts
and relief
relief accounts
accounts
INDEPENDENT OFFICES—COntd.
federal Surplus Commodities Corporation
Federal Trade Commission
General Accounting Office.
George Washington Bicentennial
Commission . .
-^Great Lakes Exposition
-Greater Texas and Pan American
Exposition
Interstate Commerce Commission—
"National Advisory Committee for
Aeronautics.-National Archives—
"National Capital Park and Planning Commission
'National Emergency Council
"National Industrial Recovery Administration
"Nfltional Labor Relation*? Board
"National Mediation Board
National Resources Committee
•Office of Coordinator for Industrial
Cooperation —
._ Office of Special Adviser to the
President on Foreign Trade Petroleum Administration
Prison Industries Reorganization
Administration
Railroad Administration and Transportation Act
Railroad Retirement Board
Resettlement Administration
Rural Electrification Administration
-"Securities and Exchange Commission
__
Smithsonian Institution
'Social Security Board
.
^Subsistence homesteads
TTennessee Vallev Authoritv
'Texas Centennial Exposition
XT. S. Food Administration
TJ. S Maritime Commission
V . S. Shipping Board Bureau
U. S. Supreme Court Building
(building)
U. S. Tariff Commission
"Veterans' Administration
War Finance Corporation
IVelfare and Recreational Association of Public Buildings and
Grounds
W^ork*? Proprpss Administration
Miscellaneous commissions, boards,
etc.:
N'orthwest Territory Celebration
Commission
Operations under Mineral Act of
Oct 5, 1918
Trotection of interests of United
States in leases on oil lands in
formpr naval reserves
Thomas Jefferson Memorial Commission
'^
"U. S. Constitution Sesquicentennial Commi«;sion
U . S . Harvard University Tercen"War Trade Board, salaries and
Special deposit accounts
Subtotal, above independent
offices, checks-issued basis...
For footnotes, see p. 319.
$1,852,541.03
5,667,425.03
(•)
$15.34
3,665,443. 61
$1,852. 556.37
9, 232,868. 64
$484,716.35
418.32
16,657.66
33,635.04
212,676.47
33, 635.04
212, 675. 47
560,678.39
7,582,779.60
560, 578. 39
7,582,779. 60
2,387.21
1,494,923. 57
680,658.22
4,639.41
66.60
461,041. 94
1,184,054.96
13,876.00
0
1,488,051.91
680,658.22
461,041.94
738,283.84
362,640.05
6,871.66
1,184,054.96
(<)
961, 922.65
753,172.21
362, 640. 05
961,922. 66
133,434. 76
133,434. 76
10.87
10.87
14,888.37
(10)
154, 387. 72
154,387. 72
3,867,923.38
3,867,923. 38
(o;
C)
(0
3, 681, 327. 25
922, 764, 06
3,681,327.25
922, 764.06
(»)
^^
885,600.32
10.00
(0
135,244.62
12.17
885, 600. 32
10.00
(»)
(»)
41, 548. 29
957,444.31
41,548. 29
957,444.31
(»)
213.60
(«)
320.21
213.60
2, 254,460.95
(^)
75,000.00
75,000.00
14,068.08
14,068.08
21,395.33
21,395.33
25,644.88
25,644.88
13, 694. 24
13,694.24
34.02
34.02
386.48
386.48
37.60
37.50
42,996,424. 78
12, 279,163. 98
55,276,588.76
/, 619.70
2,847,296.96
307
REPORT OF THE SECRETARY OF THE TREASURY
TABLE 2,-—Details of expenditures, by organization units and accounts, for the fiscal
year 1937—Continued
Organization imit
General and
special accounts
Total, general,
Recovery and special, recovery, Trust accounts
and relief
relief accounts
accounts
INDEPENDENT OFFICES—COntd.
Adjustment between checks issued
and cash expenditures..
$437,564.40
$48,721.38
$388,843.02
. Subtotal, above independent
offices, cash basis
43, 433,989.18
12,230,442. 60
55,664,431.78
(')
V. S. Maritime Commission
U. S. Maritime Commission
} 12 5,670,502.84
U. S. Shipping Board Bureau
Adjustment between checks issued
417,076.15
and cash expenditures
Subtotal, cash basis
_.
6,087, 678.99
5,670, 602.84
%62,218.51
417,076.15
6,087,578.99
(0
Retirement funds
Alaska Railroad retirement fund
Civil service retirement and disability fund
Canal Zone retirement fund
Foreign service retirement fund
72,411.57
46,050,000.00
500,000.00
47,628,472.03
614,185. 88
46,550,000.00
46, 550,000. 00
48,315,069.48
46, 550,000.00
46,550,000. 00
48, 278, 275. 56
Administrative expenses
Grants to States
Special deposit account
13,109,168.91
153,092,861.07
13,109,168. 91
153,092,861.07
Subtotal, checks-issued basis. _
Adjustment between checks issued
and cash e.xpenditures
166, 202, 029. 98
166, 202,029.98
Subtotal, checks-issued basis.
Adjustment between checks issued
and cash expenditures...
Subtotal, cash basis
46,050,000.00
500,000.00
(13)
(13)
36,793.92
Social Security Board "
2,122,472.49
2,122, 472. 49
168,324, 502. 47
168,324, 502. 47
Administrative expenses
Annuity payments..
Railroad retirement fund
Special deposit account
1, 514, 244.09
4,068,497.28
1, 514, 244.09
° 4,068,497.28
Subtotal, checks-issued basis. _
Adjustment between 'Checks, issued
and cash expenditures
5,582,741.37
5, 582, 741. 37
Subtotal, cash basis...
8,283.60
8,283.60
(0
Railroad Retirement Board
Subtotal, cash basis
104,076.43
104,076.43
5,478,664.94
• 5,478, 664. 94
82,965,038.06
82,965,038.06
Veterans' Administration
Salaries and expenses
Administrative expenses, Adjusted
Compensation Payment Act,
1936, Veterans' Adminis tration __
Adjusted service and dependent
pay
Hospital and domicOiary facilities
and services
Military and naval compensation .
Military and naval insurance
..
Emergency Relief, Veterans' Administration:
Administrative expenses
Construction and improvement
of buildings, etc
National Industrial Recovery,
Veterans'Administration
Printing and binding
For footnotes, see p. 319.
1,839,096.88
1,839,095.88
1, 547,668. 68
1, 647, 668.68
8,871,707.29
42,997.16
88,472,87L86
8,871,707. 29
42,997.16
88,472,871.86
97,251.85
2,513.96
2,513.96
299,156. 48
299,156.48
90,876. 63
1
90,876.63
97,251.85
77.20
494.86
417.66
(1)
308
REPORT OF THE SECRETARY OF THE TREASURY
TABLE 2.—Details of expenditures, by organization units and accounts, for the fiscal
year 1937—Continued
General and
special accounts
Organization unit
Recovery a n d
relief accounts
T o t a l , general,
special, recovery, T r u s t accounts
a n d relief
accounts
INDEPENDENT OFFICES—COntd.
Veterans' Administration—Contd.
Army and Navy pensions
Private relief acts. .
Miscellaneous items
Special deposit accounts . .
.. . .
$396,047, 400.05
3,900. 00
$396,047, 400.05
3,900.00
6,175.82
6,175.82
Subtotal, Veterans' Administration, exclusive of adjusted
service certificate fund and
Government life insurance
fund, checks-issued basis
Adjustment between checks issued
and cash expenditures. .
Subtotal, Veterans' .Administration, exclusive of ad justed
service certificate fund and
Government life insurance
fund, cash basis-
579, 795, 760. 69
$392, 547, 07
580,188, 307. 76
438,948. 29
17,137.45
456,085. 74
580, 234, 708.98
409, 684. 52
580, 644, 393. 50
$2,368,916.95
1,487,099.39
3,856,016.34
0)
Adjusted service certificate fund
Government life insurance fund
556,005, 687. 89
556,005, 687. 89
12, 683, 205. 50
74, 847,995. 49
Subtotal, checks-issued basis..
Adjustment between checks issued
and cash expenditures
556,005, 687. 89
556,005, 687. 89
87, 531,200. 99
659. 736. 79
659, 736. 79
3, 214, 356. 21
556,665,'424. 68
556, 665,424. 68
90, 745, 557.20
Total, Veterans' Administration, cash basis
1,136,900,133. 66
409, 684. 52 1,137,309,818.18
Subtotal, cash basis
...
(1)
Farm Credit Administration
Salaries and expenses
Agricultural marketing revolving
fund . .
Farmers' crop production and harvesting loans
_.
Agricultural credits and rehabilita-tion, emergency relief .
Emergency relief, Farm Credit Administration, emergency ocrop
loans.-.."
Loans to farmers in storm, flood,
and drought-stricken areas
Loans and relief in stricken agricultural areas (transfer to Farm
Credit Administration)
Federal Farm Mortgage Corporation
Miscellaneous items
Special deposit accounts
Total, Farm Credit Administration, checks-issued basis.
Adjustments between checks issued
and cash expenditures...
6, 226, 742. 24
6, 226, 742. 24
6,778,326.23
6,778,326.23
28, 552, 529. 35
4, 825, 713. 52
23, 726, 815. 83
612,314- 69
612,314. 69
4,681,720. 52
4, 681, 720. 52
288,174.04
288,174.04
3,646,480. 81
3,646,480. 81
561, 723. 81
1,688.46
78, 662. 52
561, 723. 81
2,016, 740. 66
27,180,807. 61
3,228, 750.00
23,952,057. 61
2,016, 740. 66
91,06L27
82, 559. 93
173, 621. 20
27, 271,868. 88
3,146,190. 07
24,125,678.81
1,688. 46
78,662. 52
.
Total, Farm Credit Administration, cash basis
(0
Other independent offices
Federal Emergency Relief Administration..
Federal Civil Works Administration
Emergency conservation work
Federal Emergency Administration
of Public Works:
Administrative expenses
Loans and grants to States, municipalities, railroads, etc
F o r footnotes, see p . 319.
90.00
8,302,059.41
8, 302,149. 41
10, 269.19
329, 006, 606. 34
275,498. 23
58, 573, 335. 64
285, 767. 42
387, 579,941. 98
27,376,022.05
27, 376,022.05
155. 61
209,690, 770. 36
209, 690,925. 97
^.98,728.68
309
KEPORT OF THE SECRETARY OF THB TREASURY
TABLE 2.—Details of expenditures, by organization units and accounts, for the fiscal
year 1937—Continued
General and
special accounts
Organization unit
INDEPENDENT
Recovery a n d
relief accounts
T o t a l , general,
special, recovery,
T r u s t accounts
a n d relief
accounts
OFFICES—COntd.
other independent offices—Contd.
Rural Electrification Administration.
Works Progress Administration
Federal Housing Administration..
Federal emergency housing
Subsistence homesteads
Resettlement Administration
Savings an*d loan promotion, Federal Home Loan Bank Board
Commodity Credit Corporation
Export-Import Banks of Washington
National Industrial Recovery Administration.^..
Tennessee Valley Authority
Subtotal, other independent
offices, checks-issued basis. _
Adjustment between checks issued
and cash expenditures
Subtotal, other independent
offices, cash basis
Total, independent
• cashbasis
$933,218.05
$8, 230, 700. 28 ^ $9,163, 918. 33
16,162. 33 1,899,069,166.44 1, 899,085, 328. 77
$2,261 864-31
50, 869, 207.94
50, 869, 207.94
28, 898.17
177, 562. 32
28, 898.17
177, 562. 32
46.59
1,092, 879.87
1,092,926.46
2,167.15
42, 254, 510.14
11,318.95
79, 283. 23
13,486.10
42, 333, 793; 37
00
372, 223, 225. 40 2, 263, 776, 702. 89 2, 635,999,928. 29
8,157, 605. 50
18, 555, 755. 41
2, 360, 592.99
10, 398, 249. 91
364,065, 719.90 2, 282, 332, 458. 30 2, 646, 398,178. 20
(0
1, 785,937, 300. 04 2, 291, 826, 395. 35 4, 077, 763, 695. 39
(1)
offices,
DEPARTMENT OF AGRICULTURE
Office of the Secretary
_
612,068.35
Office of Solicitor
__
187, 785.19
Office of Information
1,162, 539. 70
Library, Department of Agriculture
100, 792. 61
5, 844,187. 92
Office of Experiment Stations
796, 700. 94
Special research fund
Extension Service..
895, 772. 52
Cooperative agricultural extension
work
16,343, 202. 76
Weather Bureau
3,807,947. 96
9,845,408.96
Bureau of Animal Industry.. _
673, 724.07
Bureau of Dairy Industry
4,591,778.25
Bureau of Plant Industry...
Forest Service
10, 350, 535. 50
Cooperative work. Forest Service...
Payment to States and Territories
from national-forests fund
1, 027, 576.19
Acquisition of lands for protection
of watersheds and .streams.'
975, 663. 25
Bureau of Chemistry and Soils
1, 366, 295. 65
Bureau of Entomology and Plant
Quarantine
5,466, 527. 36
Bureau of Biological Survey
2, 312,450.16
Bureau of Agricultura.1 Economics..
6, 832, 697.08
436, 636. 28
Bureau of Agricultural Engineering.
211,705.85
Bureau of Home Economics.
Enforcement of the Grain Futures
Act
229, 665. 90
Food and Drug Administration
2; 040, 767. 07
16 21, 486,440. 83
Soil Conservation Service
243, 739. 57
Agriculture, miscellaneous
20,067. 50
Private relief acts
. . .
Special deposit accounts
Total, Agriculture, departmental, checks-issued basis. .
Adjustment between checks issued
and cash expenditures._.
Total, Agriculture,, departmental, cash basis.
F o r footnotes, see p . 319.
3, 469, 472. 91
4,081, 541. 26
187, 785.19
1,162, 539. 70
50, 045. 23
100, 792. 61
5, 844,187. 92
796, 700.94
945, 817. 75
7,091.46
1,099,050. 69
636. 64
39,119. 02
22,837,320.84
16, 343, 202. 76
3, 815,039.42
10,944,459. 65
674,360. 71
4, 630, 897. 27
39,187,856. 34
928, 753.19
1,027, 576.19
975,663. 25
1, 366, 295. 65
14, 687, 974. 50
4,491, 504.10
1,887,175. 54
49,193. 78
1, 320, 209.04
20,154,501.86
6,803, 954. 26
7, 719,872. 62
485,830. 06
1, 531, 914. 89
2, 325. 00
9,802, 927. 29
1.50
229, 665. 90
2, 043,092. 07
31, 289, 308.12
243,738. 07
20,067. 50
500. 00
3,793,892. 52
5,091, 515. 54
102,862,677.42
59, 744,044. 54
162, 606, 721. 96
1,596,987.06
2,392, 271. 09
795, 284. 63
101, 265, 690. 36
62,136, 316. 23
163,402,006. 59
9, 814, 661. 25
0)
310
REPORT OE THE SECRETARY OF THE TREASURY
TABLE 2.—Details of expenditures, by organization units and accounts, for the fiscal
year 1937—Continued
General a n d
special accounts
Organization u n i t
Recovery a n d
relief accounts
T o t a l , general,
special, recovery,
T r u s t accounts
a n d relief
accounts
DEPARTMENT OF AGRICULTURE—
continued
Soil
Conservation a n d D o m e s t i c
Allotment Act:
Conservation a n d use of agricult u r a l l a n d resources, checksissued basis
A d j u s t m e n t b e t w e e n checks issued
a n d cash expenditures
S u b t o t a l , cash b a s i s ,
Resettlement Administration
Subsistence h o m e s t e a d s
S u b t o t a l , checks-issued b a s i s . .
A d j u s t m e n t b e t w e e n checks issued
a n d cash expenditures
S u b t o t a l , cash basis
_ .
Total,
public
highways,
checks-issued. basis
A-djustment b e t w e e n checks issued
a n d cash e x p e n d i t u r e s . . .
T o t a l , p u b l i c h i g h w a y s , cash
basis.Agricultural A d j u s t m e n t A d m i n i s tration:
A d v a n c e s t o A g r i c u l t u r a l Adjustm e n t Administration
A d v a n c e s to D e p a r t m e n t of Agric u l t u r e u n d e r T o b a c c o A c t of
J u n e 28, 1934
A d m i n i s t r a t i o n of t h e C o t t o n A c t
of 1934
Agricultural Adjustment Admin. istration (act A u g . 24, 1935):
E x p o r t a t i o n a n d domestic cons u m p t i o n of agricultural commodities
.
Agricultural contract a d j u s t m e n t s
P a y m e n t s for agricultural adjustments
R e f u n d i n g processing tax on farm
products
Salaries a n d general expenses
A d v a n c e s t o S e c r e t a r y of Agric u l t u r e for cotton
National Industrial
Recovery.
Agricultural A d j u s t m e n t A d ministration, National Recovery Administration, codes..
National Industrial Recovery
E l i m i n a t i o n of diseased cattle.
D e p a r t m e n t of A g r i c u l t u r e
R e t u r n of a d v a n c e s for processing taxes
T o t a l , Agricultural Adjustment
Administration,
checks-issued basis
_
$369,693,994.41
12,494,198.02
12,494,198.02
357,199, 796.39
357,199,796.39
@
—.
501.54
$222, 295,906.05
159,109. 33
222, 296,407. 59
159,109. 33
$3,565,392.62
501. 54
222,455,015.38
222,455, 616. 92
•3,563,392.62
601.64
12,759,448.21
12,759,949.75
209, 695,567.17
209, 695, 567.17
921,364.14
77,041,361. 26
9,258,771.97
610,370.67
12,924,208.00
1,811, 227. 26
1,804,296.95
12,924,208.00
226,910,240.60
226,910,240.60
._
Public highways:
Federal-aid h i g h w a y s y s t e m
Forest roads a n d trails
Cooperative construction of rural
post r o a d s . . .
Public-lands highways
National Industrial Recovery
Emergency
Relief,
highways,
grade-crossing elimination, etc__
H i g h w a y funds ( s t a t u t o r y allocation)
Emergency appropriations
For footnotes, see p. 319.
$369,693,994.41
77,041,361.26
8,337,407.83
1,811,227.26
1,293,926.28
14,131,336.03
14,664, 655. 27
14,131,336.03
14,664,655. 27
88,483,922.63
270,062,174.71
358, 546,097.'34
1,219,128.69
9,163,252.79
7,934,124.10
89, 703,051. 32
260,908. 921.92
350,611,973. 24
20,527.17
. 20,627.17
157.65
167.66
876,372.22
876,372.22
35,167,899.01
36,157,899.01
92,643,894.41
92,643,894.41
9,793,623.00
9,793,623.00
17,000,000.00
17,000,000,00
810.38
36,918.49
810.38
35,918.49
17, 739,448.73
17,739,448.73^
,
2,486.82
126,807,222.20
(0
10.496.342. 86
2,485.82
6,416.78
137. .303. 565. 06
S. Aie. 78
311
REPORT OF THE SECRETAEY OF THE TREASURY
TABLE 2.—Details of expenditures, by organization units and accounts, for the fiscat
year 1937—Continued
General and
special accounts
Organization unit
Total, general,
Recovery and special, recovery, Trust accounts
relief accounts
and relief
accounts
D E P A R T M E N T OF AGRICULTURE—
continued
Adjustment between checks issued
and cash expenditures
_.
Total, Agricultural Adjustment Administration, cash
basis
..
Refund of receipts: Refunding processing tax on farm products,
checks-issued basis
Adjustment between checks issued
and cash expenditures
Subtotal, cash basis
$32,288,799.60
$269,109.18
$32,557,908.78
159,096.021.80
10,765,452. 04
169,861,473. 84
6,777,966.00
6,777,966.00
262,192.46
262,192.46
6, 515, 773. 54
6, 515, 773. 54
Department of Agriculture—relief:
Loans and relief in stricken agricultural areas, checks-issued basis
Adjustment between checks issued
and cash expenditures
433,232.45
433,232.45
43,016.99
43,016.99
Subtotal, Department of Agriculture-relief, cash basis
476, 249.44
476,249.44
Total. Department of Agriculture, cash basis .
713, 780,333.41
(1)
543,982,506.80 1, 257, 762,840. 21
(1)
DEPARTMENT OF COMMERCE
Office of the Secretary
Bureau of Air Commerce
Bureau of Foreign and Domestic
Commerce
Bureau of Census...
Bureau of Marine Inspection and
• Navigation
National Bureau of Standards
Bureau of Lighthouses
Coast and Geodetic Survey
Bureau of Fisheries
Patent Office
Private Relief acts
Commerce, miscellaneous . . -.
Special deposit accounts
U. S. Shipping Board Bureau
Total, Commerce, departmental, checks-issued basis.
Adjustment between checks issued
and cash exoenditures
Total, Commerce,
mental, cash basis
depart-
Social Security Act: " Administrative
expenses,
checks-issued
basis
Adjustment between checks issued
and cash expenditures
Subtotal, cash basis.
Total, Department of Commerce, cash basis.-._
975,951.20
6,462,385.76
2, 916, 497. 62
16 2,114,053.46
2,095, 536. 76
1,936,167.22
10,874, 972. 25
2,478, 566.36
1, 540,983. 24
4,498,652.85
39,516. 68
29,376. 01
1,829.27
323,931. 62
65, 216.98
1, 299, 882.82
6,617,602.74
62, 768.40
4.417,305.60
2, 979,265.92
6, 531,359.06
$3,916.67"
14, 619.72'
2,095, 536. 76
1,996,944. 79
10, 930, 951.37
2, 522,167. 68
1, 605, 568.45
4,498, 652! 85
39, 516. 68
29.376. 01
1,829.27
5,006. 65
67, 648. 2026,829: 99142, 636. 61^
260,667.66.
60,777.67
65, 979.12
43, 602.32
64, 585. 2i
0')
.35,960,829.04
6,084,166.82
41,044, 995.86
217,248.42
230,039.99
447,288.41
36,178, 077.46
5,314,206.81
41,492, 284. 27
85,739.84
86,739.84
16,104. 64
16,104.64
101,844.48
101,844. 48
36,279,921.94
6,314,206.81
41,594,128.75
1,914,183.49
1,563,796.23
3,477,979.72
D E P A R T M E N T OF T H E I N T E R I O R
Office of the Secretary
Division of Geographic Names' ^
Division of Investigation 18 _
Division of Grazinffi*
U S Geographic Boardi*
Division of Territories and Island
Possessionsis
For footnotes, see p. 319.
(0
(0
312
REPORT OF THE SECRETARY OF THE TREASURY
TABLE 2.—Details of expenditures, by organization units and accounts, for the fiscal
year 1937—Continued
Organization unit
DEPARTMENT
OF T H E
General and
special accounts
Total, general,
Recovery and special, recovery, Trust accounts
relief accounts
and relief
accounts
INTERIOR—
continued
Office of the Secretary—Continued.
Puerto Rican Hurricane Relief
Commission 18
Commission of Fine Arts
George Rogers Clark Sesquicentennial Commission
Mount Rushmore National Memorial Commission
Petroleum Administration
National Bituminous Coal Commission
Terry's Victory Memorial Commission
Tuerto Rico Reconstruction Administration
"War Minerals Relief Commission...
-Oeneral Land Office . .
...
Bureau of Reclamation
Boulder Canyon project
'Geological Survey...
National Park Service . . _ _ _ _
Arlington Memorial Bridge Commission 20
Public Buildings Commission 20...
Public Buildings and Public Parks
of the National Capital 20
National Cemeteries 20
National Military Parks 20
Office of Education. ._
Government in the Territories._.._.
Beneficiaries
._
Bureau of Mines
Private relief acts
Interior, civil, miscellaneous
Special deposit accounts
Indian Affairs:
Salaries and general expenses
Education
General support and administra.tion
Miscellaneous expenses of Indian
Service
__
._
Interest on Indian tribal funds
Tribal funds
Special deposit accounts
Total, Interior, departmental,
including Indian Affairs,
but excluding Boulder Canyon project, checks-issued
basis
Adjustment between checks issued
and cash expenditures
Total, Interior, departmental,
including Indian Affairs,
but excluding Boulder Canyon project, cash basis....—
Boulder Canyon project, checksissued basis
Adjustment between checks issued
and cash expenditures
Subtotal, cash basis
$9,870.75
$9,870. 75
41,489.14
41,489.14
86,354.87
250,630.36
314', 661. 27
630,301. 74
3, 373, 700.15
10, 726, 796. 06
2, 744, 077.69
15,159,950.81
For footnotes, see p. 319.
86,354.87
249, 991.85
314, 661. 27
3, 471.30
3,471.30
10 21,916,695.19
697,144. 52
26,874,006.44
21,916, 695.19
630, 301. 74
4, 070; 844.67
37, 600, 802. 50
$92, 282. 25
3,107,896. 06
802.410.43
18,838,044.18
3, 546,488.12
33, 997, 994.99
386,904. 22
15,943, 042.43
3,913, 350. 48
2,117,334. 94
2,148,185. 32
47, 686. 98
4,143.88
1, 751, 203. 26
1, 708, 754. 96
457,848.85
217, 645.64
1,908,691.76
9,967, 262. 42
7, 799, 578.51
4, 948.30
17,694. 245. 69
5, 622,105. 44
2, 575,183.79
2, 365, 830. 96
47,686.98
9, 092.18
2,490, 354. 85
165,642.80
1,358, 663. 56
87,038,495. 07
84,155, 744. 36
171,194, 239.43
130,517.66
178,545.35
309.063. 00
86, 907, 977. 42
83,977,199.01
170, 885,176. 43
6,124,896.37
10,390, 513.16
16, 515, 409. 53
918,117.76
651,162.56
1,569,280.32
5,206,778.61
9,739,350.60
14, 946,129. 21
264,372.26
264,372. 26
93,452,177.35
185, 566, 933.38
92,114, 756. 03
77,950. 26
150, 250. 86
253,101.42
9, 708, 270. 27
9,967, 262.42
12,864, 296. 83
378, 657.65
.-Puerto Rico Reconstruction Administration, housing, checks-issued,
and cash basis
Total, Department of the Interior, cash basis
$638.61
2,655,997.65
14, 222, 960.39
378, 657. 55
7,049,384.66
1, 517, 716. 35
12,635,486.08
(0
(1)
31S
REPORT OF THE SECRETARY OF THE TREASURY
TABLE 2.—Details of expenditures, by organization units and accounts, for the fiscal'
year 1937—Continued
Organization unit
General and
special accounts
Recovery a n d
relief accounts
T o t a l , general,
special, recovery,
T r u s t accounts:
a n d relief
accounts
D E P A R T M E N T OF JUSTICE
Office of the Attorney General:
Salaries and expenses .
Miscellaneous objects
Bureau of Prisons, salaries and
expenses
Federal Bureau of Investigation.
Alcohol Beverage Unit
_
Bureau of Prohibition
Tax and Penalties Unit..
Veterans' Insurance Litigation..
Alien Property Custodian
The Judiciary:
Salaries and expenses. Supreme
Court
Salaries and expenses of judges
Court of Customs and Patent
Appeals
United States Customs Court.
Court of Claims
Teiritorial courts ._ _
Panama Canal Zone, salaries.
District Court
United States Court for China,
salaries and expenses
Expenses, etc.. United States
courts
Judicial, miscellaneous.Private relief acts
_
Special deposit accounts
Penal and correctional institutions.. _
Total, Department of Justice,
checks-issued basis .
Adjustment between checks issued
and cash expenditures _.
Total, Department of Justice,
cash basis
$2,210,761.11
769,208.61
$2,210,761.11
769, 208. 61
262, 321.63
5, 510,889. 56
288. 08
194. 41
219,146. 79
681,227.12
262, 321. 63
5, 510, 889. 56
288. 08
194. 41
^ 219,146. 79
681, 227.12
$72,912.63
540,103. 56
2,420, 531. 02
540.103. 56
2,420, 531. 02
119, 509. 08
238,173.44
235, 057. 28
74, 583.35
119, 509. 08
238,173. 44
235, 057. 28
74, 583.35
45, 309.16
45, 309.16
52,364. 23
52, 364. 23
13, 717, 260. 79
566. 87
36,935. 31
2, 770.404. 25
656.937.38
1, 077, 610. 56
3,118,164.91:
27, 006. 00
11, 492, 974. 91
$981, 344. 23
13, 717, 260. 79
566.87
36,935.31
27,006. 00
12, 474, 319.14
38, 600,400. 31
981, 344. 23
39, 581, 744. 54
85, 938. 52
43,726.14
42, 212. 38
38, 686, 338.83
937, 618. 09
39, 623, 956. 92
1, 262, 737. 24
841, 647. 92
162, 831.66
1, 582, 420. 89
1,425. 568. 90
2, 424, 068. 81
9,983, 929. 32
4, 000. 00
21 383,852. 70
150, 584.49
3, 084,080. 05
221. 72
46, 650. 28
10, 030, 579. 60
4, 000.00
383, 852. 70
150, 584. 49
16, 583, 986.98
221.72
(0
D E P A R T M E N T OF LABOR
Office of the Secretary
_
Bureau of Labor Statistics
Immigration and Naturalization
Service
__ _.
Private relief acts
Children's Bureau
_ _
Women's Bureau
.
U. S. Employment Service
Bituminous Coal Labor Board
National Steel Labor Relations
Board
Textile Labor Relations Board
U. S. Housing Corporation
.
Labor, miscellaneous.. _
Special deposit accounts. .
Total, Labor, departmental,
checks-issued basis .
Adjustment between checks issued
and cash expenditures ._ _
Total, Labor, departmental,
cashbasis
Social Security Act:i«
Administrative expenses
Grants to States
Subtotal, checks-issued basis .
Adjustment between checks issued
and cash expenditures _
Subtotal, cash basis
Total, Department of Labor
cashbasis
For footnotes, see p. 319
13,499,906. 93
314. 22
800. 02 -
12, 262. 51
84, 551. 62
53, 927. 43-
@FedFRASER