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ANNUAL REPORT OF THE
SECRETARY OF THE TREASURY
ON
THE STATE OF THE
FINANCES
FOR THE FISCAL YEAR
ENDED JUNE 30
1947
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1948
For sale by the Superintendent of Documents, U. S. Government Printing Ofiice, Washington 25. D. C.
Price $1.25
T R E A S U R Y DEPARTMENT
DOCUMENT N O . 3151
Secretary
iLnJ
CONTENTS
Transmittal and statement by the Secretary of the Treasury
Fiscal policy
i
.Public debt
^
.__
Foreign financial pohcy
1^
1
1
2
3
REPORT ON OPERATIONS
Budget results
Budget receipts
1.
.
Budget expenditures
.i
^^_____
General Fund
_,__.
'
Application of budget surplus and financing of cash requirements
Public debt operations
•
Ownership of interest-bearing Federal securities
Securities owned by United States ^and proprietary interest in Government ,
corporations and other business-type activities
Monetary developments
Foreign Funds Control activities
Taxation developments
Special procurement activities
Estimates of receipts
Estimates of expenditures
46
47
53
55
62
63
70
ADMINISTRATIVE REPORTS OF BUREAUS, DIVISIONS, ETC.
Comptroller of Currency, Bureau of
Contract Settlement
Customs, Bureau of
.
Engraving and Printing, Bureau of
Federal Supply, Bureau of
Fiscal Service
Foreign Funds Control (Office of International Finance)
Internal Revenue, Bureau of
Legal Division
Tax Legislative Counsel__
..
Mint, Bureau of
Monetary Research, Division of (Office of International Finance)
Narcotics, Bureau of
"
Personnel, Division of
•
•.
Practice, Committee on__
.
Research and Statistics, Division of (Office of Technical Staff)
Tax Research, Division of ^__
_°
U. S. Coast Guard
U. S. Savings Bonds Division
1
'_
1
U. S. Secret Service
-.
.-
73
75
76
81
83
89
123
124
127
128
129
132
132
134
134
135
136
136
141
142
6
6
15
20 =
21
22
41
EXHIBITS
PUBLIC DEBT
Issues and redemptions of Treasury certificates of indebtedness, and
call for redemption of Treasury bond issue
1. Offering and allotments of Series G-1947 certificates._.
. ' 147
2. Offering and allotments of Series H-1947 certificates
148
3. Offering and allotments of Series J-l947 certificates
150
4. Offering and allotments of Series K-1947 certificates
:__
151
5. Offering and allotments of Series L-1947 certificates
152
6. Offering and allotments of Series A-l948 certificates
153
7. Offering and allotments of Series B-1948 certificates_
154
8. Offering and allotments of Series C-1948 certificates
:.
. 155
9. Offering and allotments of Series D-1948 certificates_____i
___156
10. Offering and aUotments of Series E-1948 certificates
157
11. Offering and allotments of Series 1^^1948 certificates
158
12. Call for redemption of Treasury bbnds of 1947-52.
-15ft
m
IV
CONTENTS
Treasury bills
Pago
13.
14.
15.
16.
17.
18.
statement on reduction in offering of bills
Announcement concerning exchange of maturing bills
Inviting tenders for bills dated May 1, 1947
Acceptance of tenders for bills dated May 1, 1947
Summary of bill information contained in releases
Amendments to circular relating to bills
:
159
160
160
161
162
164
^
Miscellaneous
19.
20.
21.
22.
23.
Regulations governing armed forces leave bonds
Amendment in connection with redemption of savings bonds
Statement on interest rate policy of Government
Act to amend Public Debt Act of 1941
Amendment to circular relating to Series C savings notes
j_
165
169
169
170
170,
SECURITIES GUARANTEED BY THE UNITED STATES
24.
25.
26.
27.
Partial redemption of housing insurance fund debentures
Partial redemption of mutual mortgage insurance fund debentures___
Partial redemption of war housing insurance fund debentures. Series G.
Partial redemption of war housing insurance fund debentures. Series H .
171
173
175
178
MONETARY DEVELOPMENTS
28. Report ofthe National Advisory Council, October 31, 1946
29. Report ofthe National Advisory Council, March 31, 1947
30. Announcement, May 13, 1947, of stabilization agreement between
United States and Mexico
.
31. Joint statement, July 18, 1947, by Secretary of Treasury and Board of
Governors of Federal Reserve System on foreign speculative markets
in gold
.
180
186
216
217.
TAXATION DEVELOPMENTS
32. Statement of Secretary of Treasury before House Ways and Means
Committee, March 13, 1947, on H. R. 1
_.
33. Statement of Secretary of Treasury before Senate Finance Committee,
April 22, 1947, on H. R. 1___
.
34. Statement of Secretary of Treasury before House Ways and Means
Committee, May 19, 1947, on comprehensive study of tax system__
35. Message from President, June 16, 1947, returning without approval
H. R. 1
36. Message from President, July 18, 1947, returning without approval
H. R. 3950
217
224
237
244
246
ORGANIZATION AND PROCEDURE
37. Executive Order 9801, November 9, 1946, removing wage and salary
controls
.
.
38. Portions of Executive Order 9809, December 12, 1946, transferring to
Treasury Department certain functions relating to contract settlements and wage stabilization
39. Portion of President's Reorganization Plan No. 1 of 1947 relating to
contract settlement and National Prohibition Act functions
40. Establishment of Treasury Department Committee on Awards
41. Treasury Department orders relating to organization and procedure..
248
248
249
250
250
MISCELLANEOUS
42. Proclamation, April 7, 1947, amending proclamations of March 6 and
9, 1933..
.
_.
.
._
43. Transfer to Treasury of excess earnings of Federal Reserve Banks..~_.
44. Act to amend Federal Reserve Act__.__
45. Letter of Postmaster General certifying extraordinary expenditures
contributing to deficiencies in postal revenues
258
259
260
261
CONTENTS
V
TABLES
Page
Explanation of bases used in tables
Description of accounts through which Treasury operations are effected. _
265
266
RECEIPTS AND EXPENDITURES
Summary tables on receipts and expenditures
1. Receipts and expenditures, 1932-47
.
.°
-___
2. Receipts and expenditures, 1789-1947
.
.
Detailed tables on receipts and expenditures
3. Classification of receipts, 1946 and 1947
4. Classification of expenditures, 1946 and 1947
5. Budget receipts by major sources, 1941-47
.
6. Budget expenditures by major purposes, 1941-47
_.
268
272
..
278
284
304
306
Other receipts and expenditures tables
7.
8.
9.
10.
11.
12.
13.
14.
15.
Detailed internal revenue collections, 1946 and 1947
Internal revenue collections by sources, 1916-47
Internal revenue collections by States, 1947..
Receipts and expenditures of social security program, 1936-47
Panama Canal receipts and expenditures, 1903-47
Postal receipts and expenditures, 1911-47
Selected receipts and expenditures, 1789-1947
.
Expenses of Internal Revenue Service, 1947
;__
Customs collections and refunds, 1946 and 1947..
:
.
308
310
316
318
320
321.
322
323
328
NATIONAL DEFENSE AND RELATED ACTIVITIES
16. Appropriations and net contract authorizations, June 30, 1947.,
17. Appropriations, contract authorizations, and expenditures, 1941-47
18. Expenditures by department and agencies, 1941-47^
329
330
332
PUBLIC DEBT, GUARANTEED OBLIGATIONS, AND CONTINGENT
LIABILITIES
Public debt, guaranteed obligations, and contingent liabilities
outstanding
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
Public debt and guaranteed obligations outstanding June 30, 1947
Description of pubfic debt issues outstanding June 30, 1947.
.
Description of guaranteed obligations outstanding June 30, 1947..
Description of contingent liabilities outstanding June 30, 1947
Principal of pubhc debt outstandihg June 30, 1853-1947
.
Public debt and guaranteed obligations outstanding June 30, 1934-47.
Pubhc debt outstanding by classes, June 30,1937-47
.
Guaranteed obhgations outstanding by agencies, June 30, 1937-47
Contingent liabilities outstanding June 30, 1937-47
Composition ofpublic debt, 1916-47
_.._
.
Classification by type and maturity of interest-bearing public debt
and guaranteed obligations, June 30, 1946 and 1947
._
333^
335
352
354
355
356
357
359
360
361
30.
31.
32.
33.
34.
35.
36.
37.
Pubhc debt receipts and expenditures, 1946 and 1947., 364
Changes in pubhc debt by issues, 1947
372
Issues, maturities, redemptions of pubhc debt securities, 1947
386
Public debt changes and balances in General Fund, 1916-47____
399
Statutory debt retirements, 1918-47
___._._____.- 400
Transactions on account of cumulative.sinking fund, 1947
401
Cumulative sinking fund, 1921-47
._.
._
401
Guaranteed obhgations matured or called, and redeemed, 1947
402
362
Operations in public debt and guaranteed obligations
VI
^
CONTENTS
United States savings bonds and stamps and Treasury
savings notes
tax
and
N Page
38. Analysis of sales and redemptions of savings bonds by series, 1935-47.
3^9.f Sales and redemptions of savings bonds by series, 1935-47
40.~^Sales of E, F, and G bonds by denominations, 1941-47
41. Redemptions of E, F, and G bonds by denominations, 1941-47.
42. Sales and redemptions "of savings bonds by States, 1941-47
43. Percent of savings bonds sold in each year redeemed each year thereafter
44. Sales and redemptions of savings stamps, 1941-47__.
45. Sales of savings stamps by denominations, 1941-47
46. Sales and redemptions of tax and savings notes by series, 1942-47
403
404
408
410
411
412
416
416
417
Interest on the public debt and guaranteed obligations
47. Interest on public debt, payable, paid, and unpaid, 1947
48. Interest paid on public debt by issues, 1945-47
49. Interest-bearing debt outstanding, computed annual interest charge,
and computed rate of interest, 1916-47
50. Interest paid on public debt and guaranteed obligations, 1913-47
419
419
423
424
Miscellaneous
51. Average yield on long-term Treasury bonds, 1930-47
52. Prices and yields of securities, June 30, 1946 and 1947
.
426
427
CONDITION OF THE TREASURY EXCLUSIVE OF P U B U C DEBT LIABILITIES
53. Assets and liabilities of Treasury, June 30, 1946 and 1947___-___
,54. Balance in General Fund, 1946 and 1947
55. Assets and liabilities of exchange stabilization fund, June 30, 1946 and
1947
-.
:
56. Securities owned by Government, June 30, 1947
57. Securities owned by Government—changes during 1947
58. Indebtedness of foreign governments to United States, Nov. 15, 1947__
59. Indebtedness of foreign governments to United States, Nov. 15, 192847
:
430
431
432
434
436
439
440
TRUST AND SPECIAL FUNDS FOR WHICH INVESTMENTS ARE MADE BY THE
TREASURY DEPARTMENT
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
81.
Adjusted service certificate fund
Ainsworth Library fund, Walter Reed General Hospital
Alaska Railroad retirement and disability fund
'.
Canal Zone retirement and disability fund
.
Civil service retirement and disability fund
.
District of Columbia teachers' retirement and annuity fund
District of Columbia water fund. .
Assets held by Treasury under Workmen's Compensation Act, within
the District of Columbia
'___
_._
Federal old-age and survivors insurance trust fund
Railroad ret^iremeht account..
'Unemployment trust fund
Foreign service retirement and disability fund
Library of Congress trust fund
^
:
Assets held by Treasury under Longshoremen's and Harbor Workers'
Compensation Act
National Archives gift fund
National Cancer Institute gift fund
National Institute of Health glftfund.
National park trust fund
National service life insurance fund
Pershing HaU Memorial fund
.
United States Government life insurance fund
United States Naval Academy general gift fund
• 441
441
442
443
444
445
445
446
446
448
449
452
453
455
455
456
457
458
459
460
460
461
CONTENTS
CORPORATIONS
AND
CERTAIN OTHER BUSINESS-TYPE>
T H E GOVERNMENT
VII
ACTIVITIES
OF
Page
82. Combined net investment of United States with respect to corporations
and other business-type activities, June 30, 1939-47...__83. Balance sheets of corporations and other business-type activities, June
30, 1947
.
84. Income and expense of corporations and other business-type activities..
85. Sources and application of funds of corporations and other businesstype activities
^
.
^
.
86. Borrowing power and outstanding issues of corporations and other
; business-type activities, June 30, 1947
:
462
464
468
472
476
STOCK AND CIRCULATION OF MONEY IN THE UNITED STATES
87. Stock of money, money in Treasury, Federal Reserve Banks, and
circulation by kinds, June 30, 1947
88. Stock of money, money in Treasury, Federal Reserve Banks, and
circulation, June 30, 1860-1947
•
89. Stock of money by kinds, June 30, 1860-1947
90. Money in circulation by kinds, June 30, 1860-1947
477
478
482
485
CUSTOMS STATISTICS
91. Customs collections and payments by districts, 1947
92. Value of dutiable imports and amounts of duties collected at various
rates, 1938-47
93. Values of dutiable and taxable imports for consumption and estimated
duties and taxes collected by tariff schedules, 1946 and 1947
94. Estimated customs duties, value of imports entered for consumption,
and ratio of duties to value of dutiable imports and to value of all
imports, 1937-47
95. Estimated customs duties, value of dutiable imports, and ratio of
estimated duties to value of dutiable imports by tariff schedules,
1937-47
.
96. Value of dutiable imports for consumption and estimated duties col' lected by countries,. 1946 and 1947
97. Number of entries of merchandise, 1946 and 1947
98. Number of vehicles and persons entering United States, 1946 and
1947
:
99. Number of airplanes and passengers entering United States, 1946 and
1947
100. Drawback transactions, 1946 and 1947
101. Principal commodities on which drawback was paid, 1946 and 1947__
102. Seizures for violations, 1946 and 1947
103. Seizures for violations classified by agencies participating, 1947
104. Investigative and patrol activities, 1946 and 1947_ i
105. Summary of customs collections and expenditures, 1947_
488
489
490
491
492
496 '
497
497
498
498
499
499
500
500
501
MISCELLANEOUS
106. Expenditures for Federal aid to States, individuals, etc., 1920-47
107. Expenditures for direct payments to States and expenditures within
States, 1947
108. Awards of Mixed Claims Commission, amount paid, and balance due,
Sept. 30, 1947
109. Status of war contract settlement program, June 30, 1947
110. Federal fiscal activities and relationship to Nation's financial structure, 1941-47
°-
502
507
515
517 •
517
VIII
CONTENTS
OWNERSHIP OF GOVERNMENTAL SECURITIES
Page
111. Estimated ownership of governmental securities outstanding June
30, 1937-47..
112. Estimated distribution of governmental securities outstanding June
30, 1937-47
.
_113. Summary of Treasury survey of ownership of securities issued or
guaranteed by Government, June 30, 1946 and 1947^
519
520
522
BUDGET ESTIMATES
114. Budget receipts and expenditures, 1947-49
115. Trust account receipts and expenditures, 1947-49 ^
116. Effect of flnancial operations on public debt, 1947-49
Index
.
.
'
.._.-
;
524
528
529
531
SECRETARIES, UNDER SECRETARIES, AND ASSISTANT SECRETARIES
OF THE TREASURY DEPARTMENT FROM MARCH 4, 1933, TO NOVEMBER 15, 1947,1 AND THE PRESIDENTS UNDER WHOM THEY SERVED
Term of service
Official
Secretary of the Treasury President
From—
To—
Mar. 4,1933
Jan. 1,1934
Dec. 31,1933
July 22,1945
William H. Woodin, New York....
Henry Morgenthau, Jr., New York.
July 23,1945
June 25,1946
June 23,1946
Fred M. Vinson, Kentucky..
John W. Snyder, Missom-i...
May 19,1933
Nov. 17,1933
May 2,1934
Nov. 16,1933
Dec. 31,1933
Feb. 15,1936
Jan. 29,1937
Nov. 1,1938
Jan. 18,1940
Sept. 15,1938
Dec. 31,1939
Dec. 31,1945
Dean G. Acheson, Maryland..
Hem-y Morgenthau, Jr., New York.
Thomas Jefferson Coolidge, Massachusetts.
Roswell Magill, New York
John W. Hanes, North Carolina--.
Daniel W. Bell, Illinois
.
Mar. 4,1946
Jan. 23,1947
Jan. 14,1947
0 . Max Gardner, North Carolina.. Vinson, Snyder.
A. L. M. Wiggins, South Carolina. Snyder
Apr.
June
June
Dec.
Feb.
July
June
18,1933
6,1933
12,1933
1,1934
19,1936
1,1938
23,1939
Feb. 15,1936
Sept. 30,1939
Dec. 12,1933
Nov. 1,1937
Feb. 28,1939
Oct. 31,1938
Dec. 2,1945
Lawrence W. Robert, Jr., Georgia..
Stephen B. Gibbons, New York...
Thomas Hewes, Coimecticut
Josephine Roche, Colorado
Wayne C. Taylor, Illinois
John W. Hanes, North Carolina-..
Herbert E. Gaston, New York
Jan. 18,1940
Jan. 24,1945
Nov. 30,1944
May 1,1946
Apr. 15,1946
John L. Sullivan, New Hampshire. Morgenthau
Harry D. White, Maryland
Morgenthau, Vinson..
Edward H. Foley, Jr., New York.. Vinson, Snyder:
Mar. 16,1946
Edward F. Bartelt, Illinois
Secretary ofthe Treasury
Roosevelt.
Roosevelt,
Truman.
Truman.
Truman,
Under Secretary
Woodin
Woodin
Morgenthau-
Roosevelt.
Roosevelt.
Roosevelt.
Morgenthau _ Morgenthau. _
Morgenthau, Vinson..
Roosevelt.
Roosevelt.
Roosevelt,
Truman.
Truman.
Truman.
Assistant Secretaries
Woodin, MorgenthauWoodin, Morgenthau.
Woodin
Morgenthau
-.'..
Morgenthau-Morgenthau. _
Morgenthau, Vinson..
Roosevelt.
Roosevelt.
Roosevelt.
Roosevelt.
Roosevelt.
Roosevelt.
Roosevelt,
Truman*
Roosevelt.
Roosevelt,
Truman.
Truman.
Fiscal Assistant Secretary
Morgenthau,
Snyder.
Vinson,
Roosevelt;
Truman.
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, 1947
OFFICE OF T H E SECRETARY
J o h n W . Snyder.. —
Secretary of the Treasury.
A. L. M. Wiggins
...".
Under Secretary of the Treasury.
John S. Graham
Assistant to the Under Secretary.
Edward H. Foley, Jr
Assistant Secretary of the Treasury.
B. E. L. Timmons, III
- -. Assistant to the Assistant Secretary.
Vacant
Assistant Secretary of the Treasury.
Thomas J. Lynch.
- Acting General Counsel.
Edward F. Bartelt
--Fiscal Assistant Secretary of the Treasury.
William T. Heffelfinger
-_Assistant to the Fiscal Assistant Secretary.
Edward D. Batchelder
- Technical Assistant to the Fiscal Assistant Secretary.
Martin L. Moore
Technical Assistant to the Fiscal Assistant Secretary.
Frank F. Dietrich
- Technical Assistant to the Fiscal Assistant Secretary.
Walter F . Frese
.- Head, Fiscal Service Operations and Methods Staff.
Andrew N . Overby-..
. . - Special Assistant to the Secretary.
Vernon L. Clark
-- Assistant to the Secretary.
Arthur Gardner
Assistant to the Secretary.
William W. Parsons
:
Administrative Assistant to the Secretary.
Paul McDonald
Director of Administrative Services.
Denzil A. Right
_
Superintendent', Division of Treasury Buildings.
Edward E. Berney
..-Chief, Division of Treasury Space Control.
Vacant...
Chief, Division of Office Services.
Willard L. Johnson..
Budget Officer.
George H. Jones
Assistant Budget Officer.
James H. Hard, II
Director of Personnel.
Joseph A. Jordan
.'
- . . Assistant Director of Personnel.
Malachi L. Harney
-- Acting Chief Coordinator, Treasury Enforcement Agencies.
Charles P. Shaefier
Director of Public Relations.
OFFICE OF T H E G E N E R A L COUNSEL
Thomas J. Lynch
Joseph B. Friedman
Norman 0 . Tietjens
Stephen J. Spingarn
Adrian W. DeWind
Frederick C. Lusk
-Vance N . Kirbyl
James H. Mann
_
-_.
George Bronz
Lawrence Linv ille
Kenneth S. Harrison
Elting Arnold.
•John F. Anderson
Robert Chambers.
Charles Oliphant
Alfred L. Tennyson..
Theodore W. Cumiingham
Philip Nichols, Jr
-
Acting General Counsel.
- Assistant General Counsel.
- Assistant General Counsel.
Assistant General Counsel.
Tax Legislative Counsel.
Assistant Tax Legislative Counsel.
Assistant Tax Legislative Counsel.
Assistant to the General Counsel.
Special Assistant to the General Counsel.
Special Assistan t to the G eneral C ounsel.
Chief Counsel, U. S. Coast Guard.
^^
Chief Counsel, Foreign Funds Control.
Chief Counsel, Officeof the Comptroller of the Currency.
Chief Counsel, Bureau of Customs.
Chief Counsel, Bureau of Internal Revenue.
Chief Counsel, Bureau of Narcotics.
Chief Counsel, Bureau of Public Debt. .
Chief Counsel, Bureau of Federal Supply.
OFFICE OF T H E TECHNICAL STAFF
George C. Haas
Henry C. Murphy
A I F . O'Donnell
J
Russell R. Reagh
Sidney O. Tickton
Anna M. Michener
William M. Weir...
Isabella S. Diamond
-._-.
•-.
Director of the Technical Staff.
Assistant JDirectoi;.
-.- Assistant Director.
Assistant Director (Government Actuary).
Assistant Director.
Assistant to the Director.
Administrative Assistant to the Director.
Librarian.
OFFICE OF INTERNATIONAL FINANCE
Frank A. Southard, Jr..
Vacant
:
JohnS. Richards.
Lowell M. Pumphrey
James J. Saxon.Chester L. Callander:
Mary C. Hall
L
.--
Director, Office of International Finance.
Deputy Director.
Director of Foreign Funds Control.
------- Special Assistant to the Director.
. - . Special Assistant to the Director.
Executive Assistant to the Director.
Administrative Assistant to the Diiector.
DIVISION OF TAX RESEARCH
Louis Shere
-Marius Farioletti
^
F. Newell Campbell
L. Laszlo Ecker-Racz..-
-
Associate Director pf Tax Research (Acting Director).
Assistant Director.'
- Assistant Director.
Assistant Director.
PRINCIPAL ADMINISTRATIVE AND STAFF OFFICERS
XI
U. S. SAVINGS BONDS DIVISION
Vernon L. Clark—
Laurence M. Olney—
Louis J. Carow, Jr..Harold B. Master—
Leon J. Markham
Bill McDonald
National Director.
Associate National Director.
Assistant National Director (Radio, Press, and Advertising).
Assistant National Director (Special Field Activities). '
.__ Assistant National Director (Payroll Savings).
Assistant National Director (Administration).
_
BUREAU OF ACCOUNTS (IN T H E FISCAL SERVICE)
Robert W. Maxwell...-Gilbert L. Cake
Joseph Greenberg
Harold R. Gearhart
George E. Jones
Edmund C. Nussear
Harry L. Stoudt.-Harold A. Ball
-----
Commissioner of Accounts.
Associate Commissioner.
Assistant Commissioner.
Assistant to the Commissioner.
Chief Accountant.
Executive Assistant to the Commissioner.
Chief Auditor.
Senior Member, Commissioner's Technical, Planning and
Advisory Staff.
Chief Disbursing Officer, Division of Disbursement.
Administrative Assistant to the Commissioner.
Acting Liquidating Officer.
Paul D. Banning
Wallace E. Barker, Jr
Ray T. Bath
' BUREAU OF T H E PUBLIC D E B T (IN T H E FISCAL SERVICE)
Edwin L. Kilby
Donald M. Merritt
Ross A. Heffelfinger
Charles D . Peyton
Commissioner of the Public Debt.
Associate Commissioner.
Deputy Commissioner.
- Deputy Commissioner.
,
_'
-
'
OFFICE OF T H E TREASURER OF T H E . U N I T E D STATES (IN T H E FISOAL SERVICE)
William A. Julian.
Marion G. Banister
Michael E. Slindee
Frederick L. Church
Grover C. Emerson.
i
._
f... Treasurer ofthe United States.
Assistant Treasurer.
- Assistant to the Treasm-er.
Administrative Assistant to the Treasurer.
.__ Special Assistant to the Treasurer.
-
BUREAU OF ENGRAVING AND P R I N T I N G
Alvin W. Hall
Clark R. Long
Thomas F. Slattery
-
Director, Bureau of Engraving and Printing.
-.- Associate Director.
Assistant Director (Production).
OFFICE OF THE COMPTROLLER, OF THE CURRENCY
Preston Delano
Cyril B. Upham.
R; B. McCandless
J.L.Robertson
W. P . Folger
Comptroller of the Currency.
-- Deputy Comptroller.
Deputy Comptroller:
1- Deputy Comptroller.
Chief National Bank Examiner.
_.-
BUREAU OF NARCOTICS
Harry J. Anslinger
Will S. Wood
Malachi L. Harney
- - . : . . . Commissioner of Narcotics.
Deputy Commissioner.
Assistant to the Commissioner.
BUREAU OF INTERNAL REVENUE
George J. Schoeneman
William T. Sherwood
Stewart Berkshire
T. O. Atkeson
Eldon P. K i n g . . .
E. I. McLarney
Fred S. Martin
...^...
Paul A. Hankins-Victor H. Self
D. Spencer Bliss
....^
Carroll E. Mealey
Aubrey R. Marrs
William H. Woolf
Henry J. Merry
-
Commissioner of Internal Revenue.
Assistant Commissioner.
Assistant Commissioner.
-Assistant to the Commissioner.
Special Deputy Commissioner.
Deputy Commissioner, Income Tax Unit.
Assistant Deputy Commissioner, Income.Tax Unit.
Deputy Commissioner, Accounts and Collections Unit.
Deputy Commissioner, Employment Tax Unit.
Deputy Commissioner, Miscellaneous Tax Unit.
Deputy Commissioner, Alcohol Tax Unit.
Head, Technical Staff.
•.,
-•
Chief, Intelligence Unit.
Chairman, Excess Profits Tax Council.
BUREAU OF CUSTOMS
Frank Dow—
William R. Johnson
Edson J. Shamhart--A. Sidney Johnson
Glenn H. Griffith
William E. H. Higman
Henry E. Sweet
Charles Stevenson
John F . Williams
-
Acting Commissioner of Customs.
Deputy Commissioner, Tariff and Marine Administration;
Deputy Commissioner, Investigations and Patrol.
Deputy Commissioner, Fiscal Administration.
Assistant Deputy Commissioner.
Assistant Deputy Commissioner.
Assistant Deputy Commissioner.
Supervisor of Appraisers.
Chief, Division of Laboratories.
XII
PRINCIPAL ADMINISTRATIVE AND STAFF OFFICERS
BUREAU OF T H E M I N T ,
Nellie Tayloe Ross
Leland Howard
Director of the Mint.
Assistant Director.
BUREAU OF F E D E R A L SUPPLY
Clifton E. Mack.".J. D. Tompkins
Harry M. Kurth
J. W. Flatley
H. B. Dyche. -_^W. M. Freeman
Willis S. MacLeod
S.A.Snyder
Paul King
Jay L. Chambers
H.F.Riley
1
C. W. Eichelberger.--.
-
Director. .
--..' Assistant Director in Charge of Operations.
--. Assistant Director in Charge of Administration.
--Head, Government Requirements Division..
Special Assistant to the Dhector.
Deputy Director.
-.Deputy Director.
Deputy Director.
Deputy Director.
Chief Accountant, Fiscal Branch.
Chief Auditor.
Chief, Renegotiation Rebate Division.
--
U N I T E D STATES COAST GUARD
Admiral Joseph F. Farley
Rear Admiral Merlin O'Neill
Rear Admiral Ellis Reed-Hill
Commandant, U. S. Coast Guard.
Assistant Commandant.
Engineer-in-Chief.
-
U N I T E D STATES SECRET SERVICE
James J. Maloney-John J. McGrath
John H. Walker
Harry E. Neal
--
-
-
--. Chief, U. S. Secret Service.
Assistant Chief.
Assistant to the Chief.
Executive Aide to the Chief.
CONTRACT S E T T L E M E N T
Stephen J. Spingarn
Edward J. Dimock
-
Deputy Director.
Chairman, Appeal Board.
STANDING DEPARTMENTAL COMMITTEES
C O M M I T T E E ON E M P L O Y E E AWARDS
James H. Hard II...
Willard L. Johnson
Walter F. Frese
John S, Graham
B. E. L. Timmons III
.-
Chairman.
Vice Chairman.
Member.
Member.
-. Member.
-
LOYALTY BOARD
James H. Hard I I „
Stephen J. Spingarn...
William T. Heffelfinger
.1
-
Chairman.
Member.
Member.
C O M M I T T E E ON PRACTICE
John L. Graves
Hessel E. Yntema
Huntington Cairns
--
Chairman.
.-Member.
Member.
,
WAGE BOARD
James H. Hard II
Willard L. Johnson..
George 0 . Billard
:
. 1 . . . Chairman.
j . Member.
.-. Member.
I N T E R D E P A R T M E N T A L SAVINGS BOND C O M M I T T E E
Edward F. Bartelt
Chairman.
Head of each of the several departments. Members,
establishments, and agencies in the executive branch of the Governmentr.
DEPARTMENT OF THE TREASURY
M
<
November 15,1947
THE SECRETARY
OF THE
TREASURY
THE UNDER SECRETARY
OFTHE
TREASURY
ASST. SECRETARY IN CHARGE
SECRET SERVICE. NARCOTICS,
FEDERAL SUPPLY, COMPTROLLER OF
CURRENCY, ENGRAVING AND PRINTING, MINT, COAST GUARD, COORD. OF
ENFORCEMENT, COM. ON PRACTICE
GENERAL COUNSEL
FOR THE
TREASURY.
DIRECTOR OF
THE OFFICE OF
INTERNATIONAL
FINANCE
ASSISTANTS
TOTHE
SECRETARY
DIRECTOR OF
THE TECHNICAL
STAFF
DIRECTOR
OF TAX
RESEARCH
ASST TO THE
SECRETARY IN
CHARGE OF U.S.
SAVINGS BONDS
DIVISION
ADMINISTRATIVE
ASSISTANT TO
THE SECRETARY
ENFORCEMENT
"T^--.
Bureou of
Engroving ond
Printing
Office of the
Comptroller of
the Currency
U.S. Sovings
Division
Public Relotions
C H A K T 1.
Officeof the
Treasurer of the
United Stotes
Office of
Administrotive
Services
ANNUAL REPORT ON THE FINANCES
TREASURY DEPARTMENT,
Washington J D. (7,, January 12, 1948,
.SIR: I have the honor to make the following report dn the finances
of the Federal Government for the fiscal year ended June 30, 1947.
FISCAL POLICY
The Government closed its operations for the fiscal year with a
surplus. During this year, the first full fiscal year following the end
of the war, substantial progress was made in the reconversion of the
American economy to a peacetime basis. By the end of the year,
all previous records of civilian production had been surpassed. Goods
and services were being produced at an annual rate ol about $230
billion, and the accumulated backlog of demand for some types of
goods was beipig satisfied at a growing pace.
Notwitlistanding the high rate of industrial output, full employment, and generally good harvests, scarcities of various kinds continue
to be much in evidence. This is true of housi^ng, housing materials,
automobiles, certain electrical equipment, fuels, industrial and agricultural machinery, and other products. Perhaps of greatest moment
is the short supply of steel. Its ramifications extend throughout the
transportation and manufacturing industries and are reflected in turn
in inadequate supplies of finished goods.
The upward pressure on prices, to which I called attention in my
last annual report, is more critical than a year ago, despite the progress
made-in converting industry to civilian production and in refilling
commercial and industrial pipe lines. The situation assumed such
compelling proportions that the President deemed it necessary to call"
a special session of the Congress to cope specifically with the inflationary trend as well as with the problems of European recovery.
Under present circumstances, the need for the Federal Government
to pursue an anti-inflationary fiscal policy is at least as great as last
year. I t must maintain a strong financial position to assure the continued well-being of our economy. Revenues should be maintained
at a high level—high enough not only to balance the budget and to
finance the European Recovery Program, but also to provide a substantial surplus for retirement of debt. I n his State of the Union Message
on January 7, 1948, President Truman recommended certain changes
2
REPORT OF THE SECRETARY OF THE TREASURY
in the tax structure which are necessary in order to provide tax relief
to those who need it most without cutting the total tax revenues of
the Government. General tax reduction must wait until the present
inflationary pressures have subsided. At that tinie it can become a
part of a general revision of our tax structure. I n making this
revision, a tax system must be created which will help to maintain
broad consumer markets, strengthen the incentives to work and invest,
provide flexibility as economic conditions warrant, and treat all groups
equitably. Such a tax system is an indispensable instrument in
maintaining an economy of lasting full employment and abundance.
PUBLIC D E B T
The total gross public debt and guaranteed obligations amounted
to $258.4 billion on June 30, 1947. This was a reduction of $21.4
biUion from the postwar peak which had been reached on February
28, 1946, and a reduction of $11.5^ billion during the fiscal year. The
reduction in the debt during the year, like that which had occurred
in the last four months of the previous year, was accomplished almost
entirely by a reduction in the cash balance in the Treasury. By the
end of the fiscal year, this source of debt reduction had been substantially exhausted.
Total holdings of Federal securities by commercial and Federal
Reserve Banks amounted to $91.9 billion on June 30, 1947. This
was a reduction of $24.8 billion from the postwar peak, and of $16.3
biUion during the fiscal year. The reduction in bank-held debt thus
substantially exceeded the reduction in total debt, both during the
fiscal year and during the entire period since the postwar peak. The
amount of public debt (including noninterest-bearing debt) held by
nonbank investors was about $3}^ biUion larger on June 30, 1947,
than it had been at the time of the peak in the total debt on February
28, 1946. This concentration of the entire debt reduction during the
16-month period ended on June 30, 1947, on bank-held debt, plus
the transfer during this period of a net amount of $3)^ biUion of additional Federal securities from bank to nonbank hands, contributed
substantially to the reduction of inflationary pressures during the
period. I t was made possible by the large sums which were available
for trust fund investment during the period, the remarkably gbod
record on the redemption of savings bonds, the continued successful
sale of new savings bonds, and the restrictive debt-management and
monetary policies of the Treasury and the Federal Reserve System.
The anti-inflationary debt-management policy which characterized
the fiscal year 1947 is stiU continuing. A substantial reduction in
the total debt will be possible during the fiscal year 1948; and this
reduction, unlike that which occurred in the fiscal year 1947, vrill be
764788^48
2
REPORT OF THE SECRETARY OF THE TREASURY
3
accomplished principally by an excess of budget receipts over budget
expenditures. This excess of budget receipts over budget expenditures, which wiU occur principally, in the first three months of the
calendar year 1948, and the debt retirement which it wiU make possible, will, of course, be a far more powerful anti-inflationary force,
than the debt decreases which have occurred up to this time.
FOREIGN FINANCIAL POLICY
The United States Government has continued to pursue a broad
program of financial aid and cooperation designed to assist in the
reconstruction of war-torn countries and to facilitate the expansion
of multilateral world trade and monetary, stability. In addition
to participating in the work of the International Monetary Fund and
the International Bank for Reconstruction and JDevelopment, which
were constituted with a membership of most of the countries of the
world, the United States has carried on a program of direct assistance
tlirough its own agencies under various acts passed by the Congress.
In the course of the fiscal year, payments of the subscriptions to
the International Monetary Fund and the International Bank were
completed by the United States and most of the member countries,
so that these institutions were in a position to begin active operations.
The organizational stage of these institutions has now passed. By
the end of the calendar year 1946, the^ International Monetary Fund
had agreed upon par values for most of the member currencies; and
March 1, 1947, was set as the date for the begiiming of active exchange
transactions. A number of purchases of dollars through the Fund
took place in the com-se of the fiscal year. The International Bank
also received loan applications from foreign countries totaUng more
than $2 biUion; and by the end of the fiscal year, a $250 miUion loan
was made to France.
The National Advisory Council on International MonetaiV and
Financial Problems, estabUshed by the Bretton Woods Agreements
Act to coordinate the foreign lending operations of United States
Government agencies, and to consult and advise with the United
States representatives on the International Bank and the International Monetary Fund, considered all important questions arising in
these institutions and gave its advice to the representatives of this
Government on the boards of these institutions. The Council approved for consideration loans proposed by the Export-Import Bank
and formulated general policies for the guidance of the Ofl&ce of the
Foreign Liquidation Commissioner, Department of State, in financing
the sales of surplus property -abroad. It also considered credits
extended by the War Assets Administration and the United State
764788—48
2
4
REPORT OF THE SECRETARY OF THE TREASURY
Maritime Commission. I t approved of the extension of the stabilization agreement concluded between the Secretary of the Treasury
and the Mexican Government. The Council recommended an
emergency loan to the Philippine Government, which was authorized
by an act of Congress approved August 7, 1947.
The Council also coordinated studies of international financial
problems undertaken by its constituent agencies. In this way, the
Council was able to give its best judgment on the changing international picture, as it developed in the course of the fiscal year. I t
continually reviewed the broad'questions of policy involved in the
settlement of war obligations and in the financing of programs of
world reconstruction. I t has thus carried out, the mandate of the
Congress to coordinate the activities of United States agencies concerned with international financial problems and has been instrumental in the integration of om- foreign financial program.
TREASURY OPERATIONS
There follows a detailed discussion of receipts and expenditures,
public debt operations, taxation and monetary developments, and
other Treasury operations during the fiscal year.
J O H N W . SNYDER,
Secretary oj the Treasury.
To the SPEAKER OF THE H O U S E OF REPRESENTATIVES,
REPORT
ON
OPERATIONS
6
REPORT OF T H E SECRETARY OF T H E TREASURY
BUDGET RESULTS
Budget receipts in the fiscal year 1947 exceeded budget expenditures
by $754 million. This compares with a deficit of $20.7 billion in
1946, and a deficit of $53.9 bUlion in 1945. The pubhc debt was
reduced by $11.1 bUlion during 1947 as a result of the budget surplus
and a drawing down of the General Fund balance.
Net receipts of $43.3 billion in 1947 were slightly larger than in
1946. Expenditures in 1947 totaled $42.5 bUlion, a decline of $21.2
billion from 1946, and a decline of $57.9 bUlions from the peak wartime expenditures of $100.4 billion in 1945. The improvement of
$21.4 billion in the Government's budget position in 1947 was aiccomplished despite sharp increases in outlays in the field of international
finance and in expenditures for veterans, and a new expenditure
authorized to compensate for leave accrued to the armed forces.
A comparative summary of the annual budget results of the Federal
Government, beginning with the last prewar year, follows. The
figures are on the basis of daUy Treasury statements.
Receipts
Tiscal year
Total
receipts
Net appropriation to
Federal
old-age and
survivors
insurance
trust fund
Net
budget
receipts
Budget
expenditures »•
Budget
surplus or
deficit ( - )
In billions of dollars
1941.
1942.
1943.
1944.
1945.
1946.
1947.
8.3
13.7
23.4
46.4
47.7
44.2
44.7
0.7
.9
1.1
1.3
1.3
1.2
1.4
7.6
12.8
22.3
44.1
46.6
43.0
43.3
13.8
34.4
79.7
95.6
100.4
63.7
42.5
-6.2
-21.6
-67.4
-51.4
-63.9
-20.7
NOTE.—Figures are rounded and will not necessarily add to totals.
' Revised to Include net transactions of wholly owned corporations and certain other business-type
activities.
BUDGET RECEIPTS
Total budget receipts in the fiscal year 1947 amounted to $44.7
billion. Such receipts exceeded slightly receipts in 1946 but were
$3.0 bUUon less than peak receipts of $47.7 billion in the fiscal year
1945. Net receipts, which consist of total receipts less the net appropriation to the Federal old-age and survivors insurance trust fund,
amounted to $43.3 bUlion in the fiscal year 1947.
A comparison of total and net receipts for the 7-year period beginning July 1, 1940, is shown in the table which follows. Chart 2 on
page 7 depicts receipts by sources.
REPORT OF THE SECRETARY OF THE TREASURY
RECEIPTS, CLASSIFIED BY MAJOR SOURCES
FISCAL YEARS 1941 THROUGH 1947
bOLLARS
BHIions
1941
1942,
1943
1944
1945
FISCAL, YEARS
CHART ^ .
NoTE,--Totftl receipt?. See. table following.
1946
.I947
REPORT OF THE SECRETARY OF THE TREASURY
Receipts, fiscal years 1941 through 1947
[Dollars In billio'nSi On basis of-daily Treasury statements, see p. 266]
Year ..
1941 .
1942
1943
1944
1945.
1946
1947
Income and excess
profits taxes
All other receipts 1
Amount
Percent
Amoimt
Percent
Amount
$3.6
8.0
16.1
34.7
35.2
30.9
29.3
42.0
58.2
68.8
76.3
73.7
69.8
65.6
$4.8
5.7
7.3
10.8
12.6
13.4
16.4
68.0
41.8
31.2
23.7
26.3
30.2
34.4
$8.3
13.7
23.4
46.4
47.7
44.2
44.7
Total receipts
Percent
100! o'
100.0
100.0
100.0
100.0
100.0
100.0
Net ap'pro-""
priation to
Net
Federal oldbudget
age and
receipts
survivors
..insurance,
trust fund 2
Amount
Amount
$7.6
12.8
22.3
44.1
46.6
. 43.0
43.3
'$0:7
•
•
.9
1.1
1.3
'1.3
1.2
1.4-
NOTE.—Figures are roimded and will not necessarily add to totals, v
VIncliides receipts from miscellaneous internal revenue, employment taxes, customs duties, and miscellaneous receipts.
,
.
^ 2 Represents appropriations equal to "Social security taxes—Federal Insurance Contributions Act"
collected and deposited as provided under sec. 201 (a) of the Social Security Act Amendments of 1939 less
reimbursements to the General Fund for those administrative experises, which are not paid directly from
the trustfund.
R E C E I P T S F R O M INCOME AND E X C E S S PROFITS T A X E S
In 1947, receipts from income and excess profits taxes amomited
to $29,305.6 mUlion, a decrease of $1,579.2 mUlion or 5.1 percent
from 1946. A decrease of $2,876.8 mUlion in receipts from corporation income and excess profits taxes was partially offset by an
increase of $1,297.6 miUion in receipts from the individual income
tax. As a proportion of total receipts, income and excess profits
taxes accounted for 65.6 percent as compared with 42.0 percent in
1941.
As between the two sources, the individual iacome tax has for the
past 4 years provided the larger amount of revenue receipts and ia
1947 amounted to more than double the corporation receipts. The
table following shows for each of the 7 years the amount of income and
excess profits taxes received from iindividuals and corporations.
Income and excess profits tax receipts from individuals and corporations, fiscal years
1941 through 1947
[Dollars in millions. On basis of daily Treasury statements,! see p. 266]
Year
Amount
1941 . .
1942
1943.............
1944
1945...
1946...
1947 . .
-
'
.
$1,416.2
3,216.4
-6,605.0.
19,779.2.
19,146.8
18,331.2
19,628.8
Percent
of.total
» receipts
'
Total
Corporation
Individual
Ajnount
17.1 ; $2,063.5
23.5
4,744.1
27.8 ..--.-..9,588.7...
14,876.7
43.6
16,027. 2
40.1
12, 563.6
41.4
9,676.8
44.0
Percent
of total
receipts
Amount
$3,469.6
24.9
7,96016
34.7
41..0_ ...„.16,09a..7..
34,654.9
32; 8
35,173.1
33.6
30,884.8
28.4
29,306.6
21.6
Percent,
of total
"receipts
.
42.0
68.2
68.8
76.3
73.7
69.8
66.6
NOTE.—Figures are rounded and will not necessarily add to totals.
' 1 For method of adjustment from basis of collections to basis of daily Treasury statements, see footnote 3,table 114.
9
REPORT OF THE SECRETARY OF THE TREASURY
INDIVIDUAL INCOME TAXES
Individual income tax receipts increased in the fiscal year 1947 as
compare^d with the fiscal year 1946 as a result of the increased levels
of taxable income, more than offsetting the full-year effect of the
reduction in rates instituted by the Revenue Act of 1945. Individaial
uicome tax receipts during the fiscal years 1941 through 1947 accounted for $88,022.5 mUlion in receipts. The table which follows
shows individual income taxes withheld, taxes not withheld, and back
taxes. The figures for current taxes not withheld and back taxes are
shown only on a collections basis as the corresponduig detail is not
avaUable oh the daUy Treasury statement basis. Income taxes withheld and total individual uicome taxes not withheld are shown ^on the
daily Treasury statement basis. The figures for income taxes not
withheld are adjusted to a daily Treasury statement basis by making
arbitrary adjustments of the individual income tax collections as
reported by the Bureau of Internal Revenue.
Individual income taxes withheld and not withheld, fiscal years 1941 through 1947
[In millions of dollars.
On basis of internal revenue collections, and adjusted to daily Treasury statement
basis, see p. 265]
Collections basis
Not withheld
Year
Withheld
Total
Current
1941
1942
1943
1944
1946..
1946
1947
Daily Treasury statement basis
....
...
686.0
7,823.4
10,263.4
9,867.5
9,842^0
1,314.3
3,108.0
5,771.0
10,253.8
8,258.6
8,430.4
8, 950.3
Withheld
Back taxes
103.4
154.8
172.9
183.7
2 512.4
416.7
651.0
1.417.7
3.262.8
6.629.9
18,261.0
19, 034.3
18, 704. 5
19,343.3
1 686.0
1 9,177.8
10, 289. 2
9,391.7
10,013.1
Not with.. held 1
1,416.2
3.216.4
5,818.9
10,601.4
8,856.6
8.939.5
9, 615. 7
Total
1,416.2
3,216.4
6,505.0
19,779.2
19,145.8
18,331.2
19,628.8
NOTE.—Figures are rounded and will not necessarily add to totals.
1 Estimated.
2 Consists principally of the final payment of the so-called unforgiven tax of the 1943 tax liability, which'
was due in March 1945.
Income taxes withheld increased in the fiscal year 1947 as a result
of a rise in salaries and wages, offset in part by the lower rates of
withholding effective for the whole of fiscal year 1947 instead of for a
half year as in .fiscal year 1946.
Receipts from income taxes other than withheld increased in the
fiscal year 1947 as .compared with 1946 as a result of the higher levels
of taxable income reflected in these payments. This increase was
offset in part by the reduction of liabUity under the Revenue Act of
1945 which was effective on payments made during the fiscal year
1947 in respect of calendar year 1946 liabUities. I n the fiscal year
1946 only about one-quarter of the payments were so affected.
Receipts from back taxes in the fiscal year 1947 iacreased as compared with those of the fiscal year 1946 as a result of the cumulative
effect of the high level of tax liabilities in the preceding years.
10
REPORT OF T H E SECRETARY OF T H E TREASURY
CORPORATION INCOME AND EXCESS PROFITS TAXES
Total corporation income and excess profits tax receipts of $9,676.8
mUlion in the fiscal year 1947 were $2,876.8 mUlion lower than those
of the fiscal year 1946. The decline of 22.9 percent between 1946 and
1947 foUowed a decline of 21.7 percent between the peak year 1945
and the year 1946.
Details of corporation income and excess profits taxes for the fiscal
years 1941 through 1947 are shown in the table which foUows:
Corporation income and excess profits taxes, fiscal years 1941 through 1947
[In millions of dollars.
Year
1941
1942.._.
1943
1944
1946
1946
1947..
:
Income
:....
1,649.0
2,764.0
4,137.0
4,762.7
4,421.7
3,901.9
5,441.8
On basis of Intemal revenue collections, see p. 266]
Excess
profits
165.9
1, 595.4
4,844.0
8,479.4
10,111.9
6,732.0
3,076.4
Declared
value ex- Back taxes
cess profits
18.1
39.1
61.1
108.6
117.9
70.7
36.7
220.4
345.6
626.9
1,416.1
1,376.7
1,849.0
1,121.9
Total
2,053.6
4,744.1
9,669.0
14,766.8
16,027.2
12,553.6
9,676.8
Total adjusted to
daily Treas- ury statement basis
2,053.6
4,744.1
9,588.7
14,876.7
16,027.2
12,653.6
9,676.8
NOTE.—Figures are^rounded and will not necessarily add to totals.
The decline of $2,876.8 mUlion in total receipts from corporation
income and excess profits taxes between the fiscal years 1946 and 1947
was the resiUt of (1) a decrease of $727.1 million in back tax receipts,
which reflected the declining trend in proflts during the years 1943,
1944, and 1945, and (2) a decrease of $2,149.8 mUlion in current tax
receipts, which was ascribable in part to the lower proflt levels of
1945 and 1946 as compared with the level of 1944,,andin part to the
reduction in the effective tax rate in 1946 occasioned by the repeal of
the excess proflts tax and the declared value excess proflts tax under
the Revenue Act of 1945.
The decrease of $2,149.8 mUUon, or 20.1 percent, in current tax
receipts between the flscal years 1946 and 1947 was the result of
decreases of 54.3 percent and 48.1 percent in the current excess proflts
and declared value excess proflts tax receipts, together with a partiaUy offsetting increase of 39.5 percent in the current income tax
receipts. With the repeal of the excess proflts and declared value
excess proflts taxes under the Revenue Act of 1945, the declared value
excess proflts tax liabUity and tbe income subject to excess proflts
tax disappeared as deductions in arriving dt the normal tax and surtax bases and these bases were augmented correspondingly. Hence,
notwithstanding a slight reduction in surtax rates, income tax liabilities
rose substantiaUy in the calendar year 1946, thus providiag the basis
for a similar rise in current income tax receipts during the second half
of the flscal year 1947. Current declared value excess proflts tax
11
REPORT OF THE SECRETARY OF THE TREASURY
receipts in the second half of the flscal year 1947 were relatively
small since they were based solely on the declared value excess proflts
tax liabilities of corporations with taxable years ending in the months
January through June 1946. Current excess proflts tax receipts in
the second half of the flscal year 1947 were relatively small also, for
two reasons. During this period, excess proflts taxes were paid only
by corporations haviag taxable years ending between January 1 and
November 30, 1946; and the payments consisted only of an amount
determined by the percentage of the months in the corporations'
fiscal years which fell in the calendar year 1945.
R E C E I P T S FROM ALL OTHER SOURCES
Receipts from sources other than income and excess profits taxes
were $15,397.1 milUon in the fiscal year 1947, 34.4 percent of total
receipts. Such receipts exceeded fiscal year 1946 receipts from sunilar
sources both in absolute ampunt and as a percentage of total receipts.
The fiscal year 1947 was the eighth consecutive year showing an
increase. The increase of $2,043.3 miUion, or 15.3 percent, over 1946
reflected increases in each of the major receipts classifications. The
table foUowing summarizes the four main sources of these receipts
for the seven fiscal years beginning with 1941 :
Receipts from sources other than income and excess profits taxes,^ fiscal years 1941
through 1947
[In millions of dollars]
/ .Source
Miscellaneous Internal r e v e n u e :
C a p i t a l stock tax
E s t a t e a n d gift t a x
.
Liquor 3
Tobaccos
S t a m p taxes 3
.
M a n u f a c t u r e r s ' excise taxes
Retailers' excise taxes
Miscellaneous taxes 3
1941
1942
1943
2S1.9
166.7
328.8
. 407.1
432.5
447.5
819.9 1,048. 2 1, 423. 6
697.7
780.8
923.9
39.1
41.7
45.2
617.0
768.3
604.2
80.2
165.3
207.2
404.1
732.9
T o t a l miscellaneous internal r e v e n u e
2,964. 6 3,837.7 4, 671.1
(collection basis)
A d j u s t m e n t to daUy T r e a s u r y state9.4 - 1 8 . 6
m e n t basis
12.3
T o t a l miscellaneous internal r e v e n u e
(daily T r e a s u r y s t a t e m e n t b a s i s ) - . 2,966.9 3,847.1 4, 552. 6
1944
1945
380.7
611.2
1,618.0
988.4
60.8
502.7
226.2
1,076. 2
372.0
643.1
2,309.8
932.1
65.6
782.1
424.1
1,430.9
362.1
676.8
2, 526.5
1,166. 5
87.7
922.4
492.0
1,490.9
5,363.3
6,959.6
7, 713.0 .8,063.9
-62.3
-10.2
11.8
—14.4
6,291. 0
6,949.4
7,724.8
8,049.5
1946 •
1947
. (2)
779.3
2,474.6
1,237.8
80.0
1,425.2
514.2
1, 562.8
E m p l o y m e n t taxes a n d railroad u n e m p l o y m e n t insurance c o n t r i b u t i o n s
Customs
:..
:
932.0 1,194.0 1, 507.9
388.9
391.9
324.3
1,761. 2
431.3
1,792. 7
354.8
1,713.7
,435.6
2,038. 6
494.1
Miscellaneous receipts:"
S u r p l u s p r o p e r t y (act Oct. 3,1944)
Renegotiation of w a r contracts^
Allother
608.2
277.4
668.2
34/. 9
2, 235.4
1,044.7
100.9
2,040.9
1,327.7
500.9
1,062.8
1,916.2
2,885.8
279.0
1,650.3
608.2
277.4
906.1
3,280.1
3,469. 5
3,479.9
4,816.0
T o t a l miscellaneous receipts...
Total
.
-
4, 798.9 5, 707.4 7,291.0 10,763.6 12,666.6 13,353.8 15,397.1
NOTE.—Figures are rounded and will not necessarily add to totals,
t See footnote 3, table 114.
2 Repealed with respect to years ending after June 30, 1945; small collections after the eflective date of
repeal included in "Miscellaneous taxes."
3 Excludes collections for credit to trust funds.
4 Includes so-called voluntary returns.
.
12
REPORT OF T H E
MISCELLANEOUS INTERNAL
SECRETARY OF T H E
TREASURY
REVENUE
Receipts from miscellaneous internal revenue for the fiscal year
1947 exceeded 1946 receipts by $324.7 million or 4.2 percent. Large
increases ia collections of manufacturers' excise taxes and estate and
gift taxes plus small increases in tobacco taxes, retailers' excise taxes,
and miscellaneous taxes were partially offset by a large decrease in
collections from the capital stock tax and minor decreases in collections
from liquor and stamp taxes.
Capital stock tax.—The capital stock tax was repealed by the
Revenue Act of 1945 with respect to years ending after June 30, 1945.
The small collections in the fiscal year 1947 are included in miscellaneous taxes in the preceding table.
Estate and gift taxes.—Estate and gift tax collections amounted to
$779.3 million in the fiscal year 1947, representing an increase of
$102.5 million over the previous year. The increase resulted from
the iacreased value of property transferred.
Liguor taxes.—Collections from liquor taxes amounted to $2,474.6
million in the fiscal year 1947, a slight decrease from peak collections
of $2,525.5 million in the fiscal year 1946.
Tobacco and products taxes.—Tobacco tax collections amoimted to $1,237.8 mUlion in the fiscal year 1947, an increase of $72.2 million
over collections in the preceding year a n d were a result of a larger
civilian supply of taxable tobacco products.
Stamp taxes.—Collections from stamp taxes were $80.0 million in
the fiscal year 1947, a decrease of $7.7 million from coUections in
1946. Collections from stamp taxes on issues of securities and on
sUver bullion sales or transfers showed increases but they were more
than offset by decreases in collections from taxes on stock transfers,
etc., and on playing cards.
' Manufacturers^ excise taxes.—Manufacturers' excise tax collections
of $1,425.2 million were $502.8 million or 54.5 percent greater than
collections ia 1946. Each tax source in this category except matches
showed an iacrease with the largest iacreases resiUting from production
of consumers' goods which had been curtailed drastically during the
war. The principal taxes ia the category and the coUections therefrom for the 7-year period are shown in the following table:
Manufacturers' excise taxes, fiscal years 1941 through 1947
[In millions of dollars. On basis of internal revenue collections, see p. 266]
. Year
Gasoline
Automobiles,
Lubricattrucks, tires,
tubes, parts, . ing oils
and accessories
1941
156.3
343.0
1942 . . . . .
188.4
369.6
44.4
1943
—
288.8
1944
76.3
271.2
148.1
1946
406.0
250.0
405.7
1946
541.6
433. 7
1947
NOTE.—Figures are rounded and will not necessarily add to
38.2
46.4
43.3
52.6
92.9.
74.6
82.0
totals.
Electrical
energy
47.0
.50.0
• 48. 7
51.2
57.0
59.1
63.0
other
•
32.5
113.8
79.0
61.4
78.6
133.0
304.9
Total
. 617.0
768.3
504.2
602. 7
782.1
922.4
1,425. 2
13
REPORT OF THE SECRETARY OF THE TREASURY
Retailers^ excise taxes.—Collections from retaUers' excise taxes were
$514.2 mUlion in the fiscal year 1947, a slight increase over 1946.
CoUections from sales of jewelry, furs, and luggage showed small
increases and collections from sales of toUet preparations remained
about the same. Retailers' excise taxes have accounted for $1,901.0
mUlion in the 6 years in which they have been in effect. Collections
from each of the taxes are shown in the following table:
Retailers' excise taxes, fiscal years 1942 through 1947
[In millions of doilars.
Year
1942
1943
1944
1945
1946
1947
On basis of internal revenue collections, see p. 266]
Jewelry
—
Toilet
preparations
Furs
41.5
88.4
113.4
184. 2
223.3'
236.6
19.7
44.2
58.7
79.4
91.7
97.6
18.9
32.7
44.8
86.6
95.6
95. 6
Luggage
.....
Total
80 2
165 3
22&. 2
424-1
492.0
614.2
....
73.9
81.4
84.6
NOTE.—Figures are rounded and will not necessarily add to totals.
Miscellaneous taxes.—Miscellaneous tax collections amounted to
$1,552.8 miUion in the fiscal year 1947 as compared with $1,490.9
mUlion in 1946. Increases, reflecting greater avaUability of taxable
services and larger consumer incomes, occurred in each of the major
tax sources with the exception of the tax on use of motor vehicles
and boats which was repealed by the Revenue Act of 1945 with
respect to the period after June 30, 1946. The principal sources of
tax collections ia this group are shown in the foUowing table:
Miscellaneous taxes, fiscal years 1941 through 1947
[In millions of dollars.
On basis of internal revenue collections, see p. 266]
Source
T e l e p h o n e , telegraph, radio, a n d cable facilities, etc
Local telephone service
T r a n s p o r t a t i o n of persons
T r a n s p o r t a t i o n of p r o p e r t y .
-.
Admissions
Use of m o t o r vehicles a n d b o a t s
Sugar t a x . .
A l l o t h e r , i n c l u d i n g repealed taxes 2 . . i
Total
1941
1942
1943
1944
1945
1946
1947
141.3
•90.2
153.7
215.5
205.3
134.7
68.8
66.8
208.0
133.6
234.2
221.1
357.5
129.0
73.3
74.2
234.4
145. 7
226. 7
220.1
415.3
116.1
56.7
75.8
252.7
164. 9
- 244. 0
^75.7
456.2
1, 552. 8
27.3
48.2
26.8
21.4
71.0
2 74.8
34.0
115.0
72.9
68.2
61.6
91.2
67.0
87.1
82.6
154.5
146. 7
63.6
60.4
207.2
404.1
732.9 1,076. 2 1,430. 9 1,490.9
0)
59.2
100.0
NOTE.—Figures are rounded and will not necessarily add to totals.
1 Repealed with respect to the period after June 30,1946; back tax collections included in "All other, including repealed taxes."
2. Excludes collections for credit to trust funds.
EMPLOYMENT TAXES AND RAILROAD UNEMPLOYMENT INSURANCE
CONTRIBUTIONS
Total receipts from employment taxes amounted to $2,038.5
million in the flscal year 1947 and were $324.9 million or 19.0 percent
14
REPORT OF THE SECRETARY OF THE TREASURY
greater than in 1946. Each employment tax contributed to the
increase. Receipts from this source were larger in the flscal year
1947 than in any previous flscal year.
Receipts from employment taxes, 1941 through 1947, are shown in
the following table:
Employment tax receipts and railroad unemployment insura,nce contributions, fiscal
years 1941 through 1947
[In millions of dollars.
Federal
Insurance
Contributions A c t
Year
1941
1942
1943
1944
1946
1946
1947
-.
-
-
690.6
896.6
1,130.6
1,292.1
1,309.9
1,238. 2
1,459. 5
On basis of daily Treasury statements, see p. 266]
Federal
U n e m p l o y - Railroad
ment Tax Retirement
Tax Act 1
Act
Railroad
unemploym e n t insurance contributions 2 .
136.9
170.0
208.8
267.1
285.0
•282.6
380.1
6.8
8.5
10.3
12.1
13.2
12.9
14.2
97.7
119.9
168.4
179.9
184.5
179.9
184.8
Total
N e t ••
employemploym e n t taxes ment taxes 3
932.0
1,194.0
1,507.9
1, 751. 2
1, 792. 7
1,713.7
2,038.5
270.7
325.2
404.9
491.7
509.7
512. 9
594. 7
NOTE.—Figures are rounded and will not necessarily add to totals.
1 Prior to Jan. 1,1946, taxes were levied under the Carriers Taxing Act.
2 Not classified as an employment tax under the Internal Revenue Code.
3 After deduction from total employment taxes of the net appropriation to Federal old-age and survivors
. insurance trust fund. (See table on p. 268 of this report.)
Receipts under the Federal Insurance Contributions Act amounted
to $1,459.5 miUion in the flscal year 1947. This increase of $221.3
miUion resulted from an increase in taxable wages. All receipts under
this act, with the exception of a minor portion representing reimbursements to the General Fund for administrative purposes, are appropriated to the Federal old-age and survivors insurance trust fund.
Receipts under the Railroad Retirement Tax Act (Carriers Taxing
Act prior to January 1, 1946) in the flscal year 1947 were $380.1
mUlion, an increase of $97.4 million, or 34.5 percent, over receipts in
the flscal year 1946. The increase resulted from larger taxable railroad payrolls and higher tax rates. Receipts for the flrst three quarters of 1947 were based on a tax rate of 3K percent each on employers
and employees>nd the last quarter's receipts were based on a tax rate
of 5% percent each. For comparable periods in 1946, receipts were
based on rates of Z)i percent and 3}^ percent.
CUSTOMS
Customs receipts in the fiscal year 1947 increased to $494.1 million
from $435.5 mUlion, reflecting freer movement of dutiable commodities
in international trade.
MISCELLANEOUS RECEIPTS
MisceUaneous receipts in the flscal year 1947 were $4,815.0 mUlion,
an increase of $1,335.2 million over receipts in 1946. Receipts from
REPORT OF THE SECRETARY OF THE TREASURY
15
proceeds of sales of surplus property were $2,885.8 mUlion in the flscal
year 1947, an increase of $2,384.9 miUionover receipts from the same
source in 1946. This increase was offset partially by a decrease of
$783.9 mUlion in receipts from the renegotiation of war contracts.
Renegotiation of war contracts.—The decrease in receipts from the
renegotiation of war contracts resulted partly from the more conservative pricing policies which became possible with the accumulation
of cost data relating to wartime production and with increasing experience by the Government in wartime procurement, but it resulted
primarUy from the termiaation of liability for renegotiation as of
December 31, 1945. Contracts subject to renegotiation, were contracts (or subcontracts thereof) made with departments of the Government such as the War and Navy Departments, the United States
Maritime Commission, and the Treasury Department. Proflts subject to recovery by renegotiation were the ^'excessive proflts" attributable to performance of such contracts (or subcontracts) prior to
December 31, 1945. Between the flscal years 1945 and 1946 receipts
from renegotiation declined from $2,040.9 million to $1,062.8 million.
.By the end of flscal year 1946 the bulk of settlements had been completed and in the flscal year 1947 receipts from renegotiation dropped
to $279.0 million. Total receipts from renegotiation through the end
of the flscal year 1947 amounted to $6,176.3 million.
R E C E I P T S IN TRJJST ACCOUNTS, E T C .
I n addition to budget receipts, receipts under certain accounts
which are maintained with the Treasurer of the United States are
reported in the Daily Statement of the United States Treasury under
the title of ' T r u s t accounts, etc." Transactions in these accounts
are not included in the Federal budget, but certain receipts included
in the Federal budget are carried under the classiflcation ' T r u s t accounts, etc." For example, appropriations made from the General
Fund to various trust accounts, such as the Government's payments
to the employees' retirement fund, the railroad retirement account,
and the national service life insurance fund, appear as budget receipts under trust accounts. A summary oi receipts in trust accounts, etc., for the flscal years 1932 through 1947 will be found in
table 1, and details by months for 1947 in table 3.
BUDGET EXPENDITURES
Total budget expenditures of the Government amounted to $42.5
billion in the flscal year 1947. This was a decline of one third ($21.2
billion) from expenditures in 1946 and nearly 60 percent ($57.9
16
REPORT OF THE SECRETARY OF THE TREASURY
billion) from the wartime peak of $100.4 bUlion in 1945. As in the
flscal year 1946, the bulk of expenditures was determined by developments growing out of the war. Complete details of expenditures are
contained in the section of tables, and a summary by purposes is
given in table 6 on page 306. Expenditures in the past seven years,
classified by the principal purposes, are shown in the chart on page 17
and in the table which follows.
Budget expenditures, fiscal years 1941 through 1947
[In billions of dollars. On basis of daily Treasury statements, see p. 265]
National
Interest Refunds
defense
Interof taxes
and re- national Veterans onthe
public
and
lated ac- finance 2
debt
•
duties 3
tivities 1
Year
1941
1942
1943
1944
1945
1946
1947
-
6^7
28.3
. 76.3
89.7
90.6
48.9
17.3
0.7
4.4
0.6
.6
.6
.7
2.1
4.3
7.3
.
1.1
1-3
1.8
2.6
3.6
4.7
6.0
0.1
.1
.1
.3
1.7
3.0
3.0
All
other *
5.4
4.2
1.9
2.2
2.5
2.1
6.6
Total
13.8
34.4
79.7
95.6
100.4
63.7
42.5
NOTE.—Figures are rounded and will not necessarily add to totals.
1 Includes expenditures by Reconstruction Finance Corporation for. national defense.
2 Includes expenditures by Export-Import Bank.
8 Includes social security refimds.
< Includes expenditures by Government corporations and agencies except Reconstruction Finance Corporation national defense outlays and Export-Import Bank expenditures.
National defense expenditures in the flscal year 1947 totaled $17.3
bUlion, a decline of $31.6 billion, or 65 percent, from those of 1946.
The lessening of defense expenditures reflected sharp reductions in
the requirements of the juilitary and naval establishments. The
effect of these reductions was a 73 percent decrease in the expenditures
of the War Department and a 67 percent decline in those of the Navy
Department.
Partially offsetting these decreases were some increases, all concerned with the war's aftermath. The largest was a new item, consisting" of the issuance of bonds and cash payments in the amount of
$2.0 bUlion under the Armed Forces Leave Act of 1946, approved
August 9, 1946. Other.major increases occurred in the payments for
United Nations relief and rehabilitation which totaled $1.5 billion.
National Housing Agency expenditures of $99 mUlion, and expenditures of $442 miUion by surplus disposal agencies.
The following table shows national, defense expenditures by major
categories.
REPORT OF THE SECRETARY OF THE TREASURY
EXPENDITURES, CLASSIFIED BY MAJOR PURPOSES
FISCALYEARS 1941 THROUGH 1947
1943
1944
1945
FISCAL YEARS
CHART 3.
17
18
REPORT OF THE SECRETARY OF THE TREASURY
Expenditures for national defense and related-activities, fiscal years 1941 through 1947
[In billions of dollars.
Year
1941
1942
1943
1944
1945
1946
1947
On basis of daily Treasury statements, see p. 265]
War
Department
Navy
Dopartment
Armed Forces
United
Leave Act of 1946 States
Maritime
ComCash
Bonds
mission
3.7
. 14.1
42.3
49.2
60.3
27.8
7.4
2.3
8.6
20.9
26.6
30.0
15.2
6.0
0.1
.9
2.8
3.8
3.2
.7
.3
.1
1.8
War
Shipping UNRRA Other 1. Total 1
Administration
0.1
1.1
1.9
2.0
1.4
.1
0.1
.7
1.6
0.6
4.6
8.3
8.2
.4.7
3.2
1.0
6.7
28.3"
76.3
89.7
90.6
48.9
17.3
NOTE.—Figures are roimded and will not necessarily add to totals.
1 Includes Reconstruction Finance Corporation defense outlays.
Outlays for maintaining our international commitments totaled
$4.4 .billion during the flscal year 1947, an increase of $3.7 biUion
over 1946. The total consisted of subscriptions to the International
Bank and the International Monetary Fund under the Bretton Woods
Agreements Act, totaling $1,426 million; credit to the United Kingdom
of $2,050 mUlion; and a payment for capital stock for the ExportImport Bank of Washington of $325 mUlion and net expenditures
of the Bank of $613 mUlion.
Expenditures for veterans again increased sharply, and at $7.3
bUlion in the flscal year 1947, were more than one-sixth of all expenditures. They were more than three times those in the flscal year
1945, the flrst year in which the volume of expenditures for veterans
broke away completely from the level of such expenditures between
the two wars. The detail of these disbursements is shown in the
tabulation following.
Expenditures for veterans, fiscal years 1945 through 1947
[In millions of dollars. On basis of daily Treasury statements, see p. 265]
Benefits and pensions
1945
Veterans* Administration:
Benefits under Servicemen's Readjustment Act...
P e n s i o n s a n d C0Tnpensf^tion.<;
other
Subtotal
1 .'
Transfers to:
Adjusted service certificate fund
National service life insurance fund
,
. ..
... .,,.
..
Total
1946
1947 -
0.3
708.2
226.6
1,266. 6
1, 218. 2
386.4
3, 693.6
1,909.9
938.9
934.1
2,871.2
6,442.3
9.0
1,116.6
1,381.4
816.7
2,069.7
4,252. 6
7,258.9
NOTE.—Figures are rounded and will not necessarily add to totals.
Beneflts under the Servicemen's Keadjustment Act, which accounted
for the largest category of these expenditures in 1947, as well as in
1946, included the education program providing tuition expenses and
maintenance allowances, on-the-job training, unemployment and
REPORT OF THE SECRETARY OF THE TREASURY
19
. readjustment allowances, and loan guarantees for homes, farms, and
business. Pensions and compensations for disabled veterans and
pensions for survivors of those deceased constituted the next largest
group of expenditures in the fiscal year 1947.
Interest paid on the public - debt, totaling $4,958 million in the
fiscal year 1947, was the third largest single expenditure. The amount
was $236 million moriB than was paid in 1946.
Refunds of taxes and duties in the fiscal year 1947 were slightly in
excess of $3.0 billion. The refunds of income, profits, employment,
and miscellaneous uiternal revenue taxes aggregated $2.9 billion! Of
this amount, approximately $1.6 billion represented excessive prepayments of the individual income tax, resultiag either from overwithholding or from over declarations of estimated tax. This compares with a revised total of $2.2 billion for 1946. The prepayment
refunds in the fiscal'year 1946 included a considerable amount attributable to the tax year 1944, but, in contrast, only a small percentage in
the fiscal year 1947 were related to the tax year 1945. The procedure
designed to expedite refunds of excessive prepayment was in full operation in the fiscal year 1947, and the task of making refunds to indir
viduals on 1946 taxes was virtually completed by June 30° 1947.
Of the remaining $1.2 billion of iaternal revenue refunds, the most
important were the carry-backs of net operating losses and unused
excess profits credits and the respread of amortization. Other refunds
were those for the postwar credit involved ia excess profits tax payments received after July 1, 1945, the refundiag of the 10 percent
credit involved in excess profits tax payments for the tax year 1944,
the relief provisions relating to excess profits taxes, the redemption of
internal revenue stamps, and the refunding of miscellaneous internal
revenue taxes wrongfully assessed and collected.
The remaining budget expenditures, totaUng $5.5 biUion, included
the outlays for special programs and for the running expenses of the
Government departments. This total was about the same as in 1941.
Of the expenditures for special programs, those for aid to agriculture
totaled .$2.3 bUlion, a net increase pf $1.3 billion in the fiscal year
1947. PubUc works expenditures, totaling $1.1 bUlion, were $676
mUlion greater than in 1946. The largest increases were for veterans'
housing (National Housing Agency), which totaled $361 mUlion as
against $24 mUlion in 1946, and in expenditures by the Public Roads
Administration, which amounted to $187 mUlion compared with $46
miUion i n , 1946. Social security expenditures, including those for
raUroad retirement and railroad unemployment, totaled $1,065
mUlion, a net increase of $221 million over those of 1946. The largest
component of the gross increase consisted of grants to States by the
SocialSecurity Board of $226 million.
764788—48
3
-
20
REPORT O F T H E SECRETARY OF T H E TREASURY
EXPENDITURES FROM T R U S T ACCOUNTS; E T C .
I n addition to budget expenditures, expenditures under certain
accounts which are. maintained with the Treasurer of the United
States are reported in the DaUy Statement of the United States
Treasury under the title of ' T r u s t accounts, etc.". Transactions in
these accounts are not included in the Federal. budget, but certain
expenditures included in the Federal budget are in. the nature of transfers to the classification ' T r u s t accounts, etc.". For example, appropriations made from the General Fund to various trust accounts, such
as the Governinent's payments to the employees' retirement fund, the
raUroad retirement 'account, and the national service life insurance
fund, appear under budget expenditures as transfers to trust accounts.
A summary of transfers to trust accounts and of expenditures by
triist accounts, etc., for the fiscal years 1932 through 1947 wUl be
found in table 1, page 268, and details by months for 1947 in table 4,
beginning on page 300.
Commencing with the fiscal year 1947, certain revisions were made
with respect to 'Transactions in checking accounts of Government
agencies, etc. (net)" whereby net transactions of wholly owned corporations and certain agencies were incorporated into budget expenditures. Net transactions of mixed-ownership corporations and certain
special deposit accounts heretofore reflected in this category were
consolidated with "Special deposits (net)" under "Trust account
expenditures, etc." in the Daily Statement of the United States
Treasury.
Operations for the fiscal year 1947 of Government corporations and
certain other business-type activities are summarized in table 85,
page 472, "Sources and application of funds of corporations and certain other business-type activities of the United States Government".,
Such figures are not on the basis of the Daily Statement of the United
States Treasury, and therefore do not agree with the figures shown in
other tables in this report.
GENERAL F U N D
The General Fund represents all moneys of the Government
deposited with and held, by the Treasurer of t h e United States.
The assets in the General Fuud include gold, silver, currency, coin,
and unclassified coUection items, etc., and deposits to the credit of the
Treasurer of the United States, in Federal Reserve Banks, special
depositaries, national and other bank depositaries, foreign depositaries,
and the treasury of the Philippine Islands.
The Uabihties of the General Fund include outstanding Treasurer's
checks, deposits of certain Government officers composed of balances
to the credit of the Post Office Department, the Board of Trustees of
REPORT OF THE SECRETARY OF THE TREASURY
.21
the Postal Savings System, and postmasters' disbursing accounts,
etc., uncollected items, and exchanges.
The difference between total assets and total liabilities is the General
Fund balance. The General Fund cash balance at the close of the
fiscal year amounted to $3,308 milhon, a reduction of $10,930 million
during the fiscal year. Deposits with special depositaries on account.
of sales of Government securities (i. e., war loan accounts) decreased
from- $12,993 miUion on June 30, 1946, to $962 million on June 30,
1947, a decline of $12,031 miUion.
The net change in the balance of the General Fund during the fiscal
year is accounted for as follows:
.
Balance June 30, 1946
Add:
Budget receipts, net
Trust accounts, etc., receipts
._
.
^
I
$14, 238
,
43, 259
6, 228
63, 725
'
Deduct:
Budget expenditures, including corporations
Trust accounts, etc., expenditures
Net decrease in gross public debt..!
.
Balance June 30, 1947__ —
Amount
{in millions)
•
!___
$42,505
6,776
11, 136
. 60, 417
3, 308
.
NOTE.—On basis of daily Treasury statements. For a description of accounts through which Treasury
transactions are effected, see p. 266.
A comparative analysis of the assets and liabilities of the General
Fund is shown as of June 30, 1946 and 1947, in table 53.
APPLICATION OF THE BUDGET SURPLUS AND FINANCING OF
CASH REQUIREMENTS
The means of financing net cash requirements for the fiscal year
1947, as represented by the net decrease in the public debt and net
expenditures from trust accounts, are summarized in the following
table.
Amount required to be financed:
Net decrease in public debt—
Publicissues:
Amount(in millions of dollars)
IVEarketable obligations
Nonmarketable obligations (net increase)
20, 904
— 2, 872
IVTatured and,bearing no interest (net increase)__. —1, 862
Subtotal public issues..
Special issues to trust funds, etc. (net. increase)
Total net decrease in public debt
Net expenditures in trust accounts, etc
-_^
Total amount required to be
financed
Means of financing:
• Budget surplus (excess of net receipts over expenditures)
Net decrease in General Fund balance
Total amountlfinanced
16,170
— 5," 035
i
...
11, 136
' 548
11, 684
,—
754
^^-..." 10, 930
-^ 11, 684
22
REPORT, OF THE SECRETARY OF THE TREASURY
PUBLIC DEBT OPERATIONS
During the fiscal year 1947 the public debt was reduced by $11.1
billion and the guaranteed obligations held outside the Treasury declined by $0.4 billion. The combined total of the public debt and
the guaranteed obligations outstanding on June 30, 1947,'was $258.4
billion. This compared with $279.8 bUlion at the peak of the debt,
which was reached on February 28, 1946. The major part of the
reduction in the public debt was accomplished by reducing the Treasury cash balance from its post-Victory Loan peak of $26.0 billion to
its June 30, 1947, level of $3.3 biUion. Because of the relatively lowlevel of the cash balance at the end of the year, further reductions in^
the debt must logically be the outgrowth of budget surpluses.
I n its effect on the distribution of ownership, the entire decline in
the debt since the peak has been more than accoimted for by the
decline in the holdings of the commercial baulking system. Holdings
of debt by nonbank investors as a whole increased during the year-^
notably holdings by individuals and Federal agencies and trust funds.
This concentration of debt redjiction in bank holdings has helped to
allevia|)e inflationary pressures during the reconversion period. The
debt retirement program was made possible by the Treasury's
policy of maintaining a substantial portion of the debt in short-term
securities.
This policy maintained the liquidity of the banking system and put
a large portion of the debt in a form in which it could be easUy retired.
As a consequence of the liquidity of the banks' Government security
portfolios,, the large turnover of funds incident to the debt reduction
program occurred without disturbance to the money market. The
reduction in the debt has naturaUy resulted in a substantial decline
in the proportion of short-term securities, as well as in the proportion
held by banks.. The twofold character of this decline consequently
has resulted in keeping the maturity distribution and the form of the
debt well adjusted to the character of its ownership.
Chart 4 shows the public debt and guaranteed obligations outstanding at the end of each month since June 30, 1940.
I n carrying out the-debt retirement program the 91-day Treasury
bUls were reduced by $1.2 bUlion ($1.3 bUlion during the entire year)
and the 1-year certificates of indebtedness ^ were reduced by $14.4
bUlion. I n addition, all other marketable debt callable or maturing
during the year .was reduced $5.2 bUlion.
This decrease was partially offset, however, by increases in special
issues to Government trust funds and investment accounts; by $5.0
bUlion, and nonmarketable public issues by $2.9 billion. In the case
Includes the 0.90 percent 13-month notes which matured July 1,1946.
23
REPORT OF THE SECRETARY OF THE TREASURY
PUBLIC DEBT AND GUARANTEED OBLIGATIONS OUTSTANDING
Monthly, June 1940 through June 1947
DOLLARSBillions
1940
By Class of Security
1941
1942
1943
1944
CHART 4,
1945
1946
1947
24
REPORT OF THE SECRETARY OF THE TREASURY
of the nonmarketable issues, increases in armed forces leave bonds
and United States savings bonds were partially offset by a decrease in
Treasury savings notes.' There was also an increase in the public
debt amounting to $2.1 bUlion resulting from noninterest-bearing
special notes issued to the International Bank and the International
Monetary Fund.
Bank restricted issues, public marketable issues which banks may
not acquire prior to a specified date, declined from $53.5 billion to
$49^6 billion on September 15, 1946, when the 2 ^ percent Treasury
bonds of September 15, 1956-59, outstanding in the amount of $3.8
bUlion, became eligible for bank purchase. No other bank restricted
issue will become eligible for such purchase until May 19'52.
The following table shows the debt on June 30, 1946 and 1947,
distributed by classes of securities.
Public debt and guaranteed obligations of the Gov.ernment outstanding on June 30,
1946 and 1947, by classes of issues
[Dollars in millions. On basis of daily Treasury statements, see p. 265]
Percentage
distribution
June 30, • June '30, Increase
or de1946
1947 crease
(—) June 30, June 30,
1946
1947
Class of security
Public debt:
Interest-bearing:
Public issues:
Marketable:
Treasury bills
Certificates of indebtedn ess" i
Treasury notes 1
$17,039
34,804
18, 261
Treasury bonds:
Bank eligible
Bank restricted 2
Subtotal Treasury bonds
other bonds (postal savings, etc.)
Total marketable
Nonmarketable:
Treasury savings notes:
United States savings bonds
Depositary bonds
_. ..Armed forces leave bonds
Total nonmarketable.
Total public issues
Special issues to trustfunds, etc
Total interest-bearing public debt
Matured debt on which interest has ceased 3
Debt bearing no interest: *
International Bank for Reconstruction
Development series
Intemational Monetary Fund series
other
- Total debt bearing no interest
Total public debt
Footnotes at end of table.
.
*6.1
9.8
3.2
69, 686
49,636
3,823
-3,823
24.4
19.8
26.9
19.2
119. 323
119,323
(*)
44.2
46.1
180
166
-14
.1
.1
168, 702 -20, 904
70.3
65.3
-1,151
2,332
-101
1,793
2.5
18.2
.2
2.2
19.9
.1
.7
6,711
49,035
427
5,560
51, 367
325
1,793
66,173
59,045
2,872
20.8
22.9
245, 779 • 227, 747
22,332
27,366
-18,032
• 5,036
91.1
8.3
88.2
10.6
268, 111
376
-12,997
-145
99.4
.1
98.8
.1
and
936
-
6.3
12.9
6.8
65,864
53, 459
189, 606
.-.
$15, 7/75 - $ 1 , 264
25, 296 - 9 , 608
8,142 -10,119
935
269,422
255,113
231
.2
.7
.3
416'
1,724
802
416
1,724
-133
2,942
2,007
.3
1.1
258, 286 -11,136
99.8
100.0
---
.
25
REPOBT OF THE SECRETARY OP THE TREASURY
Public debt and guaranteed obligations of the Governrnent outstanding on June SO,
' 1946 and 1947, hy classes of issues—Continued
Class of security
Guaranteed obligations not owned by the Treasury:
Commodity Credit Corporation demand obligations. .
Federal Housing Administration debentures
, Other (matured)
i
Total guarauteed obligations not owned by the
Treasury
.
...
Total public debt and guaranteed obligations
June 30,
• 1946
Percentage
distribution
June 30, Increase
or de1947
crease ( - ) June 30, June 30,
1946
1947 .
$424
43
10
• $45
38
6
-$379
-4
-3
476
269,898
90
258,376
-387
- 1 1 , 523
0.2
(*)
(*)
.2\
100.0
(*)
(*)
(*)
(*)
. 100.
NOTE.—Figures are rounded and will not necessarily add to totals.
(*) Less than $500,000.
»If the .90 percent 13-month Treasury notes outstanding June 30, 1946, which resembled certificates of
indebtedness more closely than they do the other.series of Treasury notes were reclassified as certificates.
of indebtedness, these two lines of the table would read as follows:]
-14.7
9.8
25,296
-14,418
Certificates of indebtedness
39,714
3.2
4.9
8,142
-5,209
Treasury notes
13,361
2 Bank restricted issues are those which coramercial banks (banks accepting demand deposits) are not
permitted to acquire prior to a specified date.
3 Includes $23 million adjusted service bonds in 1946 and $16 million in 1947.
* Includes $58 million excess profits tax refund bonds in 1946 and $19 million in 1947.
Table 29 on page 362 shows the distribution of the interest^bearing
debt (including securities guaranteed by the United States and not
held by the Treasury) according to the number of years to the first
call date and according to the numbers of years to maturity.
A summary of public debt receipts and expenditures (issues and retirements) by classes of securities is given in the table which follows:
Public debt receipts and expenditures, fiscal year 1947
[In billions of dollars. On basis of daily Treasury statements, see p. 265]
Class of security
Public issues:
Marketable obligations:
Treasury bills
Certificates of indebtedness.
Treasury bonds
Treasury notes
..-..
All other
Exchanges
Total marketable obligations..
Nonmarketable obligations:
Armed forces leave bonds
Specialnotes ofthe United States L . . I
_...
Treasury notes tax and savings series
United States savings bonds (including accrued discount)..
Other
Total nonmarketable obligations..
Special issues to trust funds, etc..
Other obligations
...
Total gross public debt.
Receipts
(issues)
Expend- | Net reitures
ceipts or
(retireexpenditures ( - )
ments)
61.7
12.6
.1
7.2
60.4
(•)
31.8
31.8
92.1
113.2
1.8
2.3
3.1
7.9
.1
.1
.2
4.2
5.5
.2
-1.3
-12.6
-.1
-7.2
(*)
1.8
2.1
-1.1
2.4
-.2
15.2
20.4
127.8
16.4
.1
138.9
6.0
. - .
1 •
-11.1
NOTE.—Figures are rounded and will not necessarily add to totals.
* Less than $50 million.
1 International Bank for Eeconstruction and Development seriefS and International Monetary Fund
series.
26
REPORT OF THE SECRETARY OF THE TREASURY
BONDS, N O T E S , AND CERTIFICATES OF INDEBTEDNESS
A total of $44.9 bUlion marketable bonds, not^s, and certificates
of indebtedness matured during the fiscal year 1947, $19.6 billion of
which were paid in cash. The maturing securities redeemed for cash
consisted of 10 issues of % percent 1-year certificates of indebtedness
amounting to $12.4 billion, 3 issues of Treasury notes amounting to
$7.2 billion, and one issue of 3 percent conversion bonds in the amount
of $13 million. In exchange for the $25.3 billion of securities not paid
in cash, there were offered 11 issues of Ys percent 1-year certificates of
indebtedness.
Of the nonmarketable securities, sales of United States savings
bonds totaled $7,208 million, issue price, and sales^ of savings notes
amounted to $3,057 million.- Redemptions of savings bonds Series
A - G totaled $5,545 million and of tax and savings notes, $4,200
million. The offerings of securities and the disposition of matured or
redeemable issues during the fiscal year are shown in the two tables
which follow.
.
Public ofiferings of honds, notes, and certificates of indebtedness, fiscal year 1947 '
[In millions of dollars]
Amount issued
Description of security
Date of issue
1946
Julyl.......
Aug.l
Sept. 1
Oct.l*..-..
Nov.l
Dec.l
1947
Jan-1
Feb.l...«_..
Mar. 1 . . . . . .
Apr.l
June 1
In exchange
For cash for other
securities
Total
Marketable issues
l i % certificates of indebtedness:
Series F-1947, due July 1,1947...
Series G-1947, due Aug. 1,1947..
Series H-1947, due Sept. 1,1947..
Series J-1947, due Oct. 1,1947_ _.
Series K-1947, due Nov. 1,1947..
Series L-1947, due Dec. 1,1947. _
Series
Series
Series
Series
Series
A-1948, due Jan. 1,1948...
B-1948, due Feb. 1,1948..
C-1948, due Mar. 1,1948..
D-1948, due Apr. 1,1948..
E-1948, due June 1,1948..
Total marketable issues
2,916
1,223
2,341
1,440
1,775
3,281
2,916
1,223
2,341
1,440
1,775
3,281
3,134
3,947
2,142
1,321
1,777
3,134
3,947
2,142
1,321
1,777
25,296
25,296
Nonmarketable issues
Various
Do
United States savings bonds:
SeriesE
Series F and G
,
i
Treasury savings notes. Series C
4,287
2,920
3,057
Total all issues.
NOTE.—Figures are rounded and will not necessarily add to totals.
J Excludes depositary bonds, armed forces leave bonds, and guaranteed obligations.
4,287
2,920
3,057
25,296
35, 660
27
REPORT OF THE SECRETARY OF THE TREASURY
Disposition of maturing or redeemable issues of bonds, notes, and certificates of
indebtedness, fiscal year 1947 ^
[Dollars in millions]
Date of refunding or rer tirement
Description of called or maturing security
Marketable issues
1946
July 1
Aug.lSept. 1
Oct. 1
Nov. 1Dec. 1
Dec. 16
-.-
1947
Janl
Do
Feb.l . . . . -.
Mar.l.
Mar. 16
Apr. 1
^•ane 1
ExRe- changed
Percent
deemed for
new Total
exfor
secuchanged
cash 3 rity
3
0.90% Treasury notes, Series D-1946, due July 1,1946. $1,994
%% certificates:
Series F-1946, due Aug. 1,1946
.._ 1,246
1,995
Series G-1946, due Sept. 1,1946
Series H-1946, due Oct. 1,1946-_....
.'_
2,000
Series J-1946, due Nov. 1,1946....
1
2,003
Series K-1946, due Dec. 1,1946
487
13^% Treasury notes. Series B-1946, due Dec. 15,1946. 3,261
$2,916
$4,910
59 4
1,223
2,341
1,440
1,775
3,281
2,470
4,336
3,-440
3,778
3,768
3,261
49 5
64 0
41 8
47.0
87 1
%% certificates. Series A-1947, due Jan. 1,1947
196 3,134
- 13
3% conversion bonds, due Jan. 1,1947
. .
%% certificates. Series B-1947, due Feb. 1,1947
1,007 "'3,"947'
H% certificates, Series C-1947, due Mar. 1,.1947
991 2,142
1H% Treasury notes, Series B-1947, due Mar. 15, 1,948
1947.
1,321
%% certificates, Series D-1947, due Apr. 1,1947
1,499
%% certificates, Series E-1947, due June 1,1947
998 1,777
3,330
13
4,964
3,133
1,948
94.1
79.7
68.4
2,820
2,775
46.9
'64.0
19, 640 26,296
44,936
66 3
482
4,391
672
M,200
482
4,391
672
* 4,200
Total marketable issues. ._
Nonmarketable issues
Various
Do
United States savings bonds:
Series A-D
SeriesE
.._
<7 Series F and G _
_
Treasury tax and savings notes..
Total all issues
_._.
_ 29,384
26,296
54,680
NOTE.—Figures are rounded and will not necessarily add to totals.
1'Excludes depositary bonds, armed forces leave bonds, and guaranteed obligations.
2 Includes amounts transferred to matured debt on which interest ha& (teased.
3 Beginning with Mar. 1,1946, some refunding operations provided for a stated portion of the maturity
• to be redeemed for cash, with the remainder covered by an offering of an exchange security.
< Includes tax and savings notes surrendered in payment of taxes in the amount of $2,015 million.
United States savings bond sales and redemptions.-Ssles of United
States savings bonds (including discount accruals) exceeded redemp- ^
tions during the year by $2,354 million. ^ Sales amounted to $7,208
million, issue price. As of June 30, 1947, the value of unmatured
savings bonds outstanding at current redemption value aniounted to
$51,367 million. This amount was 19.9 p.ercent of the total Federal
debt outstanding, as compared with 18.2 percent a year earlier. The
amount of savings bonds issued, plus accruals, since inception was
$71,852 million. Redemptions have totaled $20,446 million, and as
of June 30, 1947, there were 71.5 percent stiU outstanding.
Detailed information bn savings bonds from March 1935 when
Series A bonds were first offered through June 30, 1947, is contained
in the tables beginning on page 403^ Sales of savings bonds of Series
E, F, and G for the fiscal year 1947 are shown by series in the foUowing
28
REPORT OF THE SECRETARY OF THE TREASURY
table. Chart 5 on page 29 shows sales, redemptions, and amounts
outstanding of the various issues of savings bonds from January 1945
through June 1947.
Sales of Series E, F, and 0 savings honds, hy months, fiscal year 1947
[In millions of dollars, at Issue price. On basis of dally Treasury statements, see p. 265]
Month
Series E
Series F
Series G
Total
1946
July.....
August...
September
October...
November
December r.
—
:
386
347
309
327
294
370
31
25
20
24
20
29
335
217
165
169
139
178
753
590
494
619
453
676
535
394
372
349
305
1301
63
41
36
33
25
24
364
278
209
191
168
157
952
712
616
572
488
482
4,287
360
2,561.
7,208
1947
January
February
March
April
May
June
----
Total
,
NOTE.—Figures are rounded and will not necessarily add to totals.
1 Includes small amouhts of unclassified Series F and G sales.
Almost 60 percent of the sales of saviags bonds in 1947 were
accounted for by sales of Series E bonds. The dollar vglunie of sales '
and the number of units sold of Series E bonds of each denomination
in the fiscal years 1941 through 1947 and by months for 1947 are
shown in the table on page 408.
The payroll savings plan continues to be popular with several
mUlion persons. WhUe the number of participants is down to about
one-fifth of the wartime level, the rate of decline is no longer a sharp
one. The average deduction has remaiued a $25 bond a month which
is about the same level as in the nondrive months during the war.
Total savings bond sales by payroll savuigs are running at about
$100 mUlion a month.
The redemptions reached their jpeak during the winter of 1945-46.
Since that time redemptions have fallen and the amount of savings
bonds outstandiag is stUl rising. Redemptions of all savuigs bonds
during the fiscal year amounted to $5,545 mUlion iacludiag accrued
discount. The matured Series A, B, and C bonds have increased
the redeinption total but Series E bond redemptions have declined.
The table which follows compares redemptions of all series of United
States saviags bonds by months for the fiscal year 1947.
29
REPORT OF THE SECRETARY OF THE TREASURY
SALES. REDEMPTIONS AND AMOUNTS OUTSTANDING
OF UNITED STATES SAVINGS.BONDS
MONTHLY, JANUARY 1945 THROUGH JUNE 1947
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S
1945
1946
1947
"DOLLARS
DOLLARS"
Billions
B illions
AMOUNTS OUTSTANDING
^
Series A t o D
^ Z ^ Series Fand 6
I SeriesE
II
il
50
40
30
20
10
• " " '' 0
J F MA MJ J A SO,ND J F M A M J J A S O f y J D J F M A M J J A S
1945
1946
1947
C H A R T 5:
NOTE.—Redemptions include matiired savings bonds.
30
REPORT OF THE SECRETARY OF THE TREASURY
Redemptions of savings honds, by months, fiscal year 1947
[In millions of dollars, at current redemption value. On basis of daily Treasury statements, see p. 266]
Series
A and B
(matured)
Month
1946
July
August
September..
October..-.
November..
December..
January-February.
March....
April
May..
June.
1947
Series
CandD
Series E i
Series F
Series G
Total
442
397
406
410
336
394
637
478
482
489
418
504
342
290
342
366
329
338
449
455
421
433
203
Total.
469
6,545
NOTE.—Figures are rounded and. will not necessarily add to totals.
1 Includes small amounts of unclassilied Series A-D redemptions through May 1947, and small amounts
of unclassified Series A-D, F, and G redemptions in Jurie 1947..
Redemptions as a percentage of the amouiit outstanding of aU series
of saviags bonds declined during the fiscd year 1947. The ratio of
.78 percent in February 1947 was the lowest reached in two years.
The table which follows compares redemptions of all series of
United States saviags bonds with amounts outstanding monthly
during the fiscal year.
Redemptions of all series of savings honds as percent of amount outstanding, hy
months, fiscal year 1947
[Dollars in millions. On basis of daily Treasury statements, see p. 266]
Month
July
August.
September..
October.....
November..
December.-
Redemp- Amount out- Redemptions
percent of
tions during standing at as amount
month 1
end of month outstanding
1946
637
478
482
489
418
604
49,336
49,493
49, 560
49,638
49,723
49,864
1.09
.97
.97
.98
.84
1.01
483
398
449
466
'421
433
60.406
50,772
60,996
> 61,163
61,282
61.407
.96
.78
1947
January..
February.
March
April
May
June
.82
.84
1 At current redemption-values, exceptsSeries G bonds which are valued at par.
" The table which follows shows the redemption experience of savings
bonds by yearly series. The experience for Series A through E bonds
is shown in the upper part of the table and that for Series F and G
bonds .combined, in the lower part. An analysis of these data by
denominations is given in a table on page 412.
31
EEPORT OF THE SECRETARY-OF THE TREASURY
Percent of savings bonds sold i n each year redeemed through each yearly period
thereafter ^
'
. [On basis of P u b l i c D e b t accounts, see p . 265]
R e d e e m e d b y e n d of—
Scries a n d calendar year in w h i c h
issued
1 year 2 years 3 years 4 years 6 years 6 years 7 years 8 years 9 years
Series A t h r o u g h E
A-1935
.
B-1936
.
C-1937
'....:...
C-1938
D-1939
.
D-1940
1
D-1941 a n d E-1941 . 1
5
6
7
6
4
4
3
11
12
12
10
9
8
7
16
17
17
15
13
11
10
20
21
20
18
15
13
13
23
24
23
19
17
15
17
8
15
19
28
23
16
24
33
38
21
34
41
29
41
35
Average, Series A - E issued
t h r o u g h D e c . 31,1941
5
10
14
17
20
Average, Series E issued from
J a n . 1,1942
19
28^
32
36
36
E-1942
E-1943
E-1944
E-1945
E-1946
.
.
-._:
26
26
25
21
18
18
21
28
28
26
22
20
20
29
29
27
24
23
31
30
29
26
22
24
26
29
Series F a n d G
F-1941
F-1942
F-1943
F-1944
F-1946
F-1946
and
and
and
and
and
and
G-1941
G-1942
G-1943
G-1944
G-1945.
G-1946
Average, Series F a n d G issued
from M a y 1,1941
1
1
2
2
2
3
3
4
6
6
7
5
7
10
10
14
2
5
8
11
10
14
13
12
13
'
NOTE.—The percentages shown in this table are the proportions of the value of the bonds sold in any
calendar year which are redeemed before July 1 of the next calendar year, and before July 1 of succeeding
calendar years. Both sales and redemptions are taken at maturity value. The average percentages shown^
above are simple averages of the percentages for the applicable annual series.
1 Percentages by denominations may be found beginning on p. 412.
Maturity of Series C savings bonds.—All savings bonds issued in
the calendar years 1937 and 1938 were designated Series C, and carried
a 10-year maturity. This issue, accordingly, began to mature on January 1, 1947. Series A had matured from March through December
1945 and Series B had matured during the calendar year 1946.
Series C saviags bonds were sold at 75 percent of maturity value
with an annual limit of $10,000 on purchases, maturity value. They
were issued originally in the amount of $470 million, issue price.
When the Series C-1937 saviags bonds began to mature, there were
$427 mUlion stUl outstanding a t current redemption value, or about
74 percent of the amount issued plus accruals. There was no change
in the maturity provisions from Series B regulations. (See Annual
Report of the Secretary of the Treasury for the fiscal year 1946,
page 49).
,
'
'
32
REPORT OF THE SECRETARY OF THE TREASURY
United States savings stamps.—^^\QS of United States savings stamps
during the fiscal year 1947 totaled $26.million, while redemptions
amounted to $52 million. Of the amount redeemed, $28 million, or
53.6 percent, were exchanged for United States savings bonds. The
amount outstanding at the end of the fiscal year was $70 million.
Data on sales and redemptions of savings stamps from May 1, 1941,
through June 30, 1947, are shown in the tables on page 416.
Treasury notes, tax series and savings series.—Series C Treasury
savings notes were sold during the fiscal year 1947 in the face amount
of $3,057 mUlion. Redemptions of Series C notes amounted to $4,194
million. Of the total amount redeemed, $2,012 mUlion were appUed
in payment of taxes and $2,182 mUUon were paid in cash. At the end
of the fiscal year there were outstanding $5,560 miUion of unmatured
Series C savings notes and $28 mUlion, of matured Series A, B, and
C notes. (S,ee the table on page 417.)
TREASURY B I L L S
Offerings of 3-month Treasury bUls were made each week during
the fiscal year 1947. As a contiauation of the Treasury policy for
retirement of the debt held by the banking system, there was an
aggregate cash retirement of $1,200 million in bills duriag the last
three months of the fiscal year. Offeriags of bUls were made, ia
weekly amounts of $1,300 mUlion untU April 17, when $200 mUlion
of the maturiag bills were retired. Bill retirements duriag the fiscal
year were effected as follows:
Amount
matured
Date of bills maturing
Amount
retired
In millions of dollars
Apr. 17
Apr. 241
Mayl
Mays
May 15
May22
June 26
Total
1947
.
.-
1,300
1,300
1,300
1.300
1,300
1,300
1,300
200
200
200
200
100
100
200
9,100
1,200
The 13 issues outstandiag at the beginning of the year totaled $17,039
mUlion; the 13 issues outstandiag at the end of the year totaled
$15,775 mUlion. The 52 issues offered duriag the year were sold at
an average rate of discount varying around 0.375 percent. Bids on
a fixed-price basis averaged about $27 mUlion a week duriag 1947
and amounted in the aggregate to about 2 percent of all bids accepted.
Announcement was made on AprU 25,1947, of a change in procedure
REPORT OF THE SECRETARY OF THE TREASURY
33
for the issuance of Treasury bUls. Begiiming with the.issue dated
May 1, 1947, tenders for bUls were invited in exchange for maturing
biUs as weU as for cash, and exchange and cash tenders were accorded
equal treatment. . Cash adjustments were made for differences
between the par^value of maturing bUls accepted in exchange and the
issue price of the new bUls.
Further iaformation concerning Treasury bUls wiU be fourid in the
exhibits beginriing on page 159 and ia the table on page 386.
DEPOSITARY BONDS
Issuance of the first series of depositary bonds, as authorized by
Department Circular No. 660, dated May 23, 1941, was continued
during the fiscal year 1947 to the various qualified depositaries and
financial agents. The total issues during the year amounted to $29
mUlion and redemptions amounted to $132 miUion. There were
$229 mUlion outstanding on June 30,, 1947.
Issuance of the second series of depositary bonds as authorized by
Department Circular No. 714, dated June 25, 1943, was also contiriued
during the year to the various qualified depositaries for withheld
taxes. The total issues duriag the year amounted to $9 mUlion, and
redemptions amounted to $9 miUion. There were $97 mUlion outstanding on June 30, 1947.
ARMED FORCES LEAVE BONDS
On November 12,1946, the Treasury Department issued regidations
for the issuance of arriied forces leave bonds, provided under section 6
of the Armed Forces Leave Act of 1946, wherein liviag members and
liviag former members of the armed forces are entitled to receive bonds
of the United States in settlement and compensation of accumulated
leave.
These bonds were issued in multiples of $25, with a minimum
denomiaation of $50, and dated the first day of the quarter-year
period next foUowing the date of discharge of the former meiriber
of the armed forces provided he was discharged on or after January 1,
1943, and prior to September 1, 1946, or on active duty on September
1, 1946. Each bond will mature five years from its issue date.
Interest wiU accrue at the rate of 2K percent per annum. The
bonds are nontransferable but may be assigned by the owner to the
Administrator of Veterans' Affairs for redemption for the purpose of
payments on a United States Government life insurance policy or a
national service life insurance policy under such regiUations as may
be prescribed by the Administrator of Veterans' Affairs. The bonds
are exempt from claims of creditors.
34
REPORT OF T H E SECRETARY OF T H E TREASURY
During the fiscal year there were $1,847 million leave bonds issued
and $54 mUlion retired, leaving a total of $1,793 mUlion outstanding.
The regulations governing armed forces 4eave bonds appear in the
exhibit on page 165.
»
SPECIAL N O T E S OF THE UNITED STATES
Pursuant to the provisions of section 7 of the Bretton Woods
Agreements Act,^ the Secretary ofJthe^^jTreasury is authorized from
timie to time to make payment of specified amounts to the International'Bank for Reconstruction and Development and the International Monetary Fund on account of the subscription of the United
States, and to treat such, payments and repayments thereof as public
debt transactions of the United States. The Secretary is authorized
and directed to issue special notes of the United States froiri time to
time to the Bank and Fund in exchange for dollars.
These notes bear no interest, are nonnegotiable, and are payable
on deriiand of the Fund or the Bank, as the case may be. The face
amount of the notes issued shall not exceed in the aggregate the amount
of the subscription of the United States actually paid to- the Bank
or Fund.
The International Bank for Reconstruction and Development
series was issued bearing printed denominations of $1 million, $5
million, and $10 million,' and a comparatively small number of notes
upon which the denomination was left blank when printed but upon
which the amount was entered at time of issue. At the end of the
fiscal year 1947, $416 million were outstanding.
/ The International Monetary Fund series was' issued in the denominations of $1 mUlion, $5 million, $10 million, $50 million, and $100
million. At the end of the fiscal year there were $1,724 million of
this series outstandiag.
See also Monetary Developnients on page 47.
SPECIAL ISSUES
Duriag the year the Treasury continued to issue special series of
interest-bearing securities for the investment of trust or other funds
deposited in the Treasury. The amount of such obUgations outstanding increased by $5,035 mUlion during the year. The total
outstanding as of June 30, 1947, amounted to $27,366 mUlion. Details
wiU be found in the table on page 345 of this report.
CUMULATIVE 'SINKING F U N D
Credits accruing to the cuniulative sinkiag fund during the year
amounted to $588 mUlion which, added to the unexpended balance
» PublioSLaw 171;[8ee Report of the Secretarylof the Treasury for 1945, p. 384.
REPORT OF T H E SECRETARY OF T H E TREASURY
35'
of $5,525'million brought forward from the previous year, made available $6,113 million for the year. None of the funds was used for the,
retirement of bonds and notes which matured or which were called
duriag the fiscal year .1947. The unexpended balance of $6,113
mUlion was carried forward to the fiscal year 1948.
Tables showing the transactions on account of this fund siace its
inception on July 1, 1920, will be found on page 401 of this report.
SECURITIES ISSUED BY CORPORATIONS AND CERTAIN OTHER BUSINESSTYPE ACTIVITIES OF THE U N I T E D STATES. GOVERNMENT ^
During the fiscal year 1947, the Treasury continued the policy
announced ia October 1941 under which funds needed by Government corporations are provided by the Treasury iastead of by the
sale of guaranteed securities in the open market. Congress incorporated this policy into law with respect to the Reconstruction
Finance Corporation (Public Law 132, approved June 30, 1947),
which requires that Corporation to issue its obligations to the Secretary of the Treasury. In addition. Treasury facUities contiaued to
be extended for servicuig obligations of Government corporations.
Pursuarit to the Government Corporation Control Act of 1945
(Public Law 248, sec. 303 (a)), approved December 6, 1945, all bonds,
notes, debentures, and other similar obligations issued subsequent to
enactment of this law by any wholly owned or mixed-ownership
Government corporation, and offered to the public, are subject to
such conditions as have been or may be approved by the Secretary
of the Treasury.
During the year the Farmers' Home Administration Act of 1946
was enacted (Public Law 731, approved August 14, 1946), authorizing^
the Secretary of Agriculture to issue notes to the Secretary of the
Treasury to obtain funds needed in excess of the appropriation provided to make payments to mortgagees as provided in that act with
respect to title I of the Bankhead-Jones Farm Tenant Act, as amended.
GUARANTEED OBLIGATIONS NOT HELD BY THE TREASURY
Matured and unmatured obligations fully guaranteed by the United
States and publicly held totaled $90 mUUon as of June 30, 1947.
The unmatured obligations of $83 mUUon compared with $467 mUlion
a year earlier. The obligations outstanding on June 30, 1947, consisted pf certain rionmarketable demand obUgations of the Commodity
Credit Corporation, issued principally ,to commercial banks in connection with commodity transactions, and of marketable debentures
i For a summary of the limitations placed by law on the amount of securities guaranteed by the tJnited
States which may be issued, seo Annual Report of the Secretary of the Treasury for 1946, pp. 76 iand 77.
764788—48
4
36
REPORT OF THE SECRETARY OF THE TREASURY
issued by the Federal Housing Administration in exchange for
mortgages.
'
These obligations at the close of the past two fiscal years were as
follows:
June 30,
1946
Issuing agency
June 30,
1947
Net
decrease
In millions of dollars
Commodity Credit Corporation
Federal Housing Administration:
Mutual mortgage insurance fund
Housing insurance fund
War housing insurance fund
r424
Total unmatured obligations...
'467
379
1
1
2
83
NOTE.—Figures are rounded and will not necessarily add to totals.
»• Revised to conform to amount shown m the first daily Treasury statement of the fiscaloyear.
In accordance with the act of May 22, 1946 (Public Law 388), the
President, in a letter dated January 29, 1947, to the Federal Housing
Commissioner, approved an iacrease in the amount of mortgages that
may be insured under title VI of the act by $1.0 billion to a total of
$3.8 billion. The aggregate amount of principal obligations of all
mortgages insured by the Federal Housing Administration is now
limited to $7.8 billion, which may be increased by an amount not
exceeding $1.0 billion with the approval of the President. I n addition, the Commissioner is authorized to incur total liabUities of $165
million under title I of the National Housing Act, as amended, for
insured renovation and modernization loans.
OBLIGATIONS HELD BY THE TREASURY
Obligations (unmatured) issued by Government corporations and
other agencies and held by the Treasury at the close of the fiscal years
. 1946 and 1947 were as follows:
t
June 30,
1946
Corporation or agency
June 30,
1947
Net hicrease or
decrease
(-)
. In millions of dollars
Commodity Credit Corporation
Export-Import Bank of Washington
Federal Farm Mortgaee Corporation
Federal Public Housing Authority
Home Owners' Loan Corporation..
Reconstruction Finance Corporation
Tp.nnftsspp, Vnllfty Anthnrify
Total
1,301
.__
.
.
NOTE.—Figures are rounded and will not necessarily add to totals,
*Less than $500,000.'
13
360
.
737
9,205
57
510
516
21
347.
529
9,966
66
-791
616
8
"—13
' —208
761
11,673
11,946
273
(*)
REPORT OF THE SECRETARY OF THE TREASURY
37
As a result of transactions under previously enacted legislation, the
borrowing power of the Reconstruction Finance Corporation was
changed during 1947. The amount of obligations w:liich the Corporation was authorized to issue as of June 30, 1947, amounted to
$17,128 mUlion, a decrease of $210 mUlion since June 30, 1946. PubUc Law 132, effective July 1, 1947, amending the Reconstruction Finance Corporation Act, authorizes future borrowings from the Secretary of the Treasury in an amount outstanding at any one time
sufficient to carry out its functions.
Table 86 on page 476 shows, by agencies, the amounts of obligations .
authorized to be outstanding as of June 30, 1947, and the amounts
actually outstanding on that date.
STATUTORY LIMITATION ON THE PUBLIC D E B T AND GUARANTEED
OBLIGATIONS
Section 21 of the Second Liberty Bond Act, as amended by the
PubUc Debt Act of June 26, 1946, lunits the amount of obligations
issued under authority of the act to $275 bUlion outstanding at any
one tioie. This limitation applies to the public debt and to those
obligations of Government corporations and other business-type activities which are fuUy guaranteed by the United States (except such^
obligations held by the Treasury).
As of June 30, 1947, the unused borrowing authorization was $17.5
biUion. The balance issuable at the end of the fiscal year 1947 and
an analysis of the public debt and guaranteed obligations outstanding
as affected by the debt limitation are shown in the tables which
foUow.
Status under limitation as of June 30, 1947
[In millions of dollars]
Amount
Maximum amount of securities which may be outstanding at any one time, under
limitations imposed by section 21 of the Second Liberty Bond Act, as amended...
Amount of securities outstanding subject to such statutory debt limitation:
U. S. Government securities issued under the Second Liberty Bond Act, as
amended '.
Guai'anteed securities..
:
._.
Total amount of securities outstanding subject to statutory debt limitation...
Balance issuable under such authority
» Excludes guaranteed securities held by the Treasury.
275,000
257,402
•190 .
267, 491
17, 509
38
REPORT OF THE SECRETARY OF THE TREASURY
Application of statutory debt limitation io public debt and guaranteed obligations
outstanding June 80, 1947
v
\
[In millions of dollars]
Class of security
Public debt:
Interest-bearing securities:
Marketable issues:
Treasury bills
Certificates of indebtedness..
Treasury notes
.
Treasury bonds—bank eligible
Treasury bonds—bank restricted '
Postal savings and Panama Canal bonds
Total marketable issues.
Nonmarketable issues:
XJ. S. savings bonds (current redemption value)—.
Treasury savings notes .Depositary bonds
Armed forces leave b o n d s . . . .
Total nonmarketable issues
Special issues to Government agencies and trust funds.
Total interest-bearing securities
Matured securities on which interest has ceased
Obligations bearing no interest:
United States savings stamps
-. -..
Excess profits tax refund bonds
Special notes of the United States:
International Monetary Fund series
_
International Bank for Reconstruction and Development series..
....
Currency items, etc.2_.
^
Total obligations bearing no interest
Total public debt
Guaranteed securities: 3
Interest-bearing securities
..
Matured debt
Total guaranteed securities
_
Total public debt and guaranteed securities outstanding.
Subject to
statutory
debt limitation
15,775
26,296
8,142
69, 686
49,636
168, 536
51, 367
5,660
325
1,793
69,046
27, 366
264, 948
225
Not covered
by statutory
debt limitation
Total
166
166
16,775
25, 296
8,142
. 69,686
49, 636
166
168,702
166
6
61, 367
5,660
325
. 1,793
69,046
27, 366
266,113
231
.
70
19
70
19
1,724
1,724
416
2,229
257,402
83
6
90
257,491
713
713
884
416
713
2,942
268, 286
884
83
6
90
268, 376
NOTE.—Figures are rounded and will not necessarily add to totals.
1 Issues which commercial banks may not acquire prior to a specified date (with minor exceptions).
2 Consists of United States notes (less gold reserve); deposits for retirement of national bank and Federal
Reserve Bank notes; and other obligations bearing no interest.
3 Excludes guaranteed securities held by the Treasury.
INTEREST ON THE PUBLIC D E B T
Interest paynients on the public debt during the fiscal year amounted
to $4,958 million, compared.with $4,722 million (daUy Treasury
statement basis) in 1946; Interest payments in 1947 do not reflect
the full annual interest savings which ultiaiately wUl be effected from
debt retirements made during the year. In the first place, there is
a time lag between the retirement of debt and the time the interest
savings become effective; for. instance, only about a half-^year's inter'^est would be saved on debt retired in the first half of the year while
the interest savings on debt retired in the latter half would not be
noticeable uritil the year foUowing. The second factor which tends
to offset interest savings on the retirement of marketable debt is the
somewhat higher average rate paid on new securities issued during the
year, such as special issues to trust funds and Government investment accounts, than the rate paid on the securities retired.
39
REPORT OF THE SECRETARY OF THE TREASURY
The effect of'Treasury financing operations, during the year as they
relate to the interest bu/den of the debt is shown in the following
table.
Computed aver age"inter est'rate and interest paid inHhe fiscal years 1946 and 1947'
on outstanding puhlic debt
[Dollars in millions. On basis of Public Debt accounts, see p. 265]
Average
interest
rate June
30,1946
Marketable:
Bills
Certificates
Notes
Bonds
Subtotal
-
Total
.
Change tn
interest
paid
Percent
0.382
.875
1.448
2.307
$63
247
190
, 2,763
---
1.773
3,270
1.871
3, 264
-
2.777
1.070
2.000
831
111
10
21
2.600
2.765
1.070
2.000
2
1,000
81
7
2
+169
—30
—3
-^19
-
2.567
2.448
973
606
2. 593
2.510
1,092
602
+119
+97
-
1.996
4,747
2.107
4,958.
+211
.-
. . . .
•-.
Interest
paid in
1947
$65
314
264
2,627
Nonmarketable:
Armed forces leave bonds
Savings bonds . .
Savings notes
.-.
Depositary bonds
Adjusted service bonds
Subtotal
Special issues
Average
interest
rate June
30, 1947
Percent
0.381
.876
1.289
2.307
.-..-•...
__ .
-
Interest
paidin
1946
•
—$2
—67
—74
+136
-6
+2
NOTE.—Figures are rounded and will not necessarily add to totals. The average rates shown for savings
bonds and savings notes represent the annual yield if held to maturity. Only the discount currently accruing on savuigs bonds is included in interest payments. On the other hand, interest on armed forces leave
bonds and savings notes is paid only at time of redemption.
The over-all computed average rate on the interest-beariag public
debt outstanding on June 30, 1947, was 2.107 percent, compared with
1.996 percent a year earlier. This increasein the general average rate
was due to the retirement of large amounts of short-term debt bearing
relatively low rates of interest, and the continued issue of nonmarketable and special issues at higher-than-average rates. The term
structure of interest rates on Government securities as of June 30,
1.946, and June 30, 1947, is compared in chart 6 on page 40.
The following summary (on basis of Public Debt accounts) gives the
amounts of the interest payments for both the public debt and guaranteed obligations, classified according to their Federal iacome tax
status, for the fiscal years 1946 and 1947, with changes from i946.
1946
1947
Change
Federal income tax status
In millions of dollars
Public debt:
Subject to the tax. 1
Subject, with minor exceptions, to surtax only
Wholly exempt...^
Special issues (wholly exempt)
Guaranteed obligations: i
Partially tax-exempt
Wholly tax-exempt...
Total interest payments
-_
^....'>....
-
-—----......
NOTE.—Figures are rounded and will not necessarily add tojtotals,
•Less than $1,000.
1 Not held^by the Treasury.
3,531
686
26
606
(*)
4,749
3,755
694
7
_ 602
+224
-92
-19
+97
(*)
+211
40
REPORT OF T H E SECRETARY OF T H E TREASURY
YIELDS OF OBUGATIONS OF THE UNITED STATES
BASED ON CLOSING PRICES
NT-
:
1
TAXABLE SECURITIES
2.8
2.6
Hbt
2.8
2.6
30.1946
30.1947
2.4
, '
2.4
^^^^^^
2.2
2.2
• '''^.•••- ' : ^ ' —
2.0
Bank Restricted-Callable
1.8
|
2.0
1.8
'
Bank Ellg ible-Callable
1.6
.1.6
1.4
1.2
/
r"
H 1.4
../".
/
1.2
^
1 BankEliqible-F xed Maturitv
U._L__.J
J — 1 — 1 — 1 — I
l
1_.
10
15
YEARS TO MATURITY OR CALL
2.2
1
1
'
•
1.8
l
l
l
25
2.2
•
'
PARTIALLY T A X - E X E M P T SECURITIES
2.0
l
20
2.0
1.8
June 30.1946
30.1947
1.6
1.6
.^^-^"^
L4
1.4
^ ^ ^ ^ „ . .
1,2
1.2
1.0
.8
.6
•
.^>'i
^
^ ^ "
1.0
BankEliqible-Ca lable
.8
.6
'
L_-J
1 i__.,
1
1
10
15
; YEARS TO MATURITY OR CALL
1
1
20
25
C H A R T 6.
NOTE.—Partially tax-exempt securities with fixed maturities and wholly tax-exempt securities are omitted
because they are too few in number and too small in outstanding amount to permit drawing a significant All bank-restricted issues are callable and all partially tax-exempt issues are bank-eligible.
The bank-eligible 2Ws of 1967-72 have been omitted from the chart in order to avoid undue complexity.
The 2H's of 1956-59 (which were bank-restricted until September 15,1946) have also been omitted for 1946.
41
REPORT OF THE SECRETARY OF THE TREASURY
OWNERSHIP OF INTEREST-BEARING FEDERAL SECURITIES'
The interest-bearuig debt of the United States Government declined from $269 bUUonto $255 bilUon during the fiscal year 1947.
Of this $255^ billion, 64 percent was held by nonbank investors as a
group. Since these same investors held only 60 percent of the debt
on June 30, 1941, one effect of the Treasuryis financing program
during the last six years has been to reduce slightly the proportion of
debt held ia the banking system. Individuals as a group account for
an important share in this improvement in nonbank participation in
debt ownership, as is shown in the foUowing table.
Ownership of Federal securities ^ hy investor classes as of June SO, 1941 through 1947
June 30
Investor classes
1941
1942
1943 ' 1944
1945
1946
1947
Amounts, in billions of dollars
A. Estimated ownership by:
1. Nonbank investors:'
a. Individuals 2
___
b. Other nonbank investors:
(1) Insurance companies
(2) Mutual savings banks
(3) Other corporations and associations 3---.-..
(4) State ahd local governments—
(5) Federal agencies and trust funds.
(6) Total other nonbank investors.
c. Total nonbank investors . .
2. Banks:
a. Commercial banks. .
b. Federal ReserveBanks
0 .
. . . . . . . .
c. Total banks
3. Total interest-bearing debt outstanding......
10.9
7.1
3.4
2.4
.6
8.6
17,9
30.3
46.1
68.5
62.9
66.1
13.1
5.3
17.3
7.3
22.7
9.6
25.3
11.6
25.0
12.1
5.4
.9
10.6
16.6
1.6
14.3
25.8
3.2
19.1
29.8
5.3
24.9
26.2
6.6
29.1
20.1
7.1
32.8
9.2
3.9<
22.0
29.9
49.7
72:6
92.3
97.5
97.2
32.9
47.8
80.0
117.7
150.8
160.4
163.3
19.7
2.2
26.0
2.6
52.2
• 7.2
68.4
14.9
84.2
21.8
'84.4
23.8
70.0
21.9
21.8
28.7
59.4
83.3. 106.0
108.2
91.9
76.6
139.6
268.6
256.2
64.7
201.1
256.8
Percent of total
B. Percent owned by:
1.. Nonbank investors:
a. Individuals 2
b. Other nonbank investors
c. Total nonbank investors
2. Banks
__
_".
3. Total interest-bearing, debt outstanding
20
40
24
39
22
36
22
36
23
36
23
36 .
60
40
62
38
57
43
59
41
69
41
60
40
100
100
100
100
100
100
\
26
38
64
36
100
NOTE.—Figures are rounded and will not necessarily add to totals.
1 Comprises interest-bearing public debt and guaranteed obligations of the Federal Government.
2 Includes partnerships and personal trust accounts.
3 Includes savings and loan associations, dealers and brokers, and investments of foreign balances and international accounts in this country.
<^
a Federal securities comprise public debt and guaranteed obligations of the Federal Government.
42
REPORT OF THE SECRETARY OF THE TREASURY
CHANGES IN O W N E R S H I P OF FEDERAL SECURITIES D U R I N G THE FISCAL
YEAR
1947
The decline in bank-held debt duriag the fiscal year 1947 was
greater than the $13.4 bUlion decliae in the total debt, since the
Treasuryis debt pay-off program was concentrated on securities
held for the most part, by commercial banks and the Federal Reserve'
Banks.
Mjarketable debt declined by nearly $21 bUlion during the year (all
but a few million dollars of it in bills, certificates, and notes) and
three-fourths of the drop was reflected in bank holdings. MeanwhUe the iacrease in nonmarketable securities in nonbank hands was
more than sufl&cient to offset the $5 billion decline in nonbank holdings of marketable debt. There was some tendency for banks to
pick up bank-eligible bonds^ from nonbank investors during the year,
but this pick-up accounted for only about 10 percent of the bank
decline in bills, notes, and certificates, as disclosed in the followiag
table.
Estimated
bank vs. nonbank absorption of interest-bearing
type of issue, fiscal year 1947
Federal securities by
fin billions of dollars]
Chang'e accounted for by
Total
change
in
Banks
amount '
outstand- Nonbank
investors
ing o
Commer- • Federal
Total
cial
Reserve
Marketable securities:
1. Treasury bills.
:...
2. Certificates and .90 % notes_.
3. Other Treasury notes
4. Treasury bonds
.>
-1.3
-14.4
-5.2
-0.9
-1.7
-1.6
5. Total.
-20.9
B. Nonmarketable securities:
1. Savings bonds
2. Savings notes
...
3. Armed forces leave bonds
.4. C C C . demand obligations..
6. Depositary bonds
6. Total.
+2.3
-1.2
+1.8
-.4
-.1
+2.4
-1.1
+1.8
+2.5
+3.1
C Special issues to Federal,agencies and trust funds..
+5.0
+5.0
-D. Totol change
-13.4
+3.0
_
NOTE.—Figures are rounded and will not necessarily add to totals.
•Less than $50 million.
-0.4
-12.7
-4.3
+L6
-0.4
-11.0
-4.1
+1.7
-15. S
-13. c
(*)
(*)
(*>
(*)
-.4
-.1
-16.4
(*)-1.7
.2
(*)^
REPORT OF T H E SECRETARY OF T H E TREASURY
43
Although the Treasury did not issue any new marketable securities
for cash during 1947, issuance of other securities amounted to almost
$18 billion—all (except for a negligible amount) to nonbank investors.
Sales of saviags boncls (including accruals) amounted to nearly $8
biUion and savings notes, $3 billion. Nearly $2 billion armed forces
leave bonds were issued and $5 biUion was added to special issues held
by Federal agencies and trust funds..
'
.
The Treasury paid out a little over $31 bUlion on redemptions and
cash maturities during the year, of which $10 bUlion involved saviags
bonds and notes. Practically all of the remainder represented the $21
bUlion of cash pay-offs by the Treasury in its program to retire marketable debt. Two-thirds of these pay-offs were made on securities held
by commercial banks and Federal Reserve Banks. Bank holdings of
.Federal securities declined by more than the amount of Treasury payoffs on bank-held securities, however, as commercial banks liquidated
further in the market. On net balance the banking system sold
approximately $1.7 biUion in the market duriag 1947. These securities, together with the $1.2 billion of marketable issues sold by Federal
agencies and trust funds during the year, were purchased principaUy
by insurance companies, mutual savings banks, and State and local
governmental funds.
The net effect, then, of chahges in debt duriag the year was to
increase nonbank holdiags of Federal securities by $3.0 bUlion while
bank holdiags decliaed by $16.4 bUlion. The trends of investment
among the various nonbank iavestors differed widely, however, as is
shown in the table foUowiag. Individuals increased their holdings by
over $3 billion—roughly half of it in savings bonds and half in armed
forces leave bonds. Federal agencies and trust funds continued to
accumulate significant surpluses in social security and military iasurance funds and invested $3.8 bUlion in Federal securities. Mutual
savings banks and State and local governments also increased their
portfolios duriag the year, but holduigs by iasurance companies fell
off slightly. The most significant decline for any nonbank iavestor
group was the $5.1 bUlion reduction in holdings by other corporations
and associations, reflectiag, as in 1946, the conversion of some corporate liquid assets into expanding inventories, receivables, plant, and
equipment. The figures on transactions in Fe.deral securities during
the year are summarized on page 44.
44
REPORT OF T H E SECRETARY OF T H E TREASURY
Estimated transactions in Federal securities» hy investor classes, fiscal year 1947
[In billions of dollars]
Purchases
from
Treasury
Investor classes
Redemptions
and cash
maturities
(-)
A. Nonbank,investors:
1. Individuals 2
1. .
2. Other nonbank investors:
a Insurance companies
b. Mutual savings banks
c. Other corporations and associations 3 . . .
d. State and local governments..
e. Federal agencies and trust funds..
(*)
B. Banks:
1. Commercial banks.2. Federal Reserve Banks
3. Total banks
.
—.
.
9.1
-6.3
+0.5
+3.3
.1
.1
3.5
-.7-,
-.2
-8.8
-.4
-.1
+.4
+.9
+.2
+1.0
-1.2
-6.1
5.0
—.2
+.7
+.6
+3.8
8.7
-10. 2
+1.3
-.3
-16.6
+1.7
+3.0
.1
-10.8
-4.0
-3.8
+2.1
—14.4
—1.9
.1
-14.8
-1.7
—16.4
17.9
-31.3
...
. -
C. Total all investors
Total net
absorption
17.8
f. Total other nonbank investors
3. Total nonbank investors
Net
market
transactions
-13.4
NOTE.—Figures are rounded and will not necessarily add to totals. Special issues and Treasury bills
are included in the figures on purchases and redemptions on the basis of net changes in amounts outstanding
(rather than gross issuances and retirements).
*Less than $50 million.
Footnotes on p. 41.
During each of the war years, of course, Federal securities represented practically the only investment outlet for the principal fibiancial
investor groups in the country. Since the Federal debt retirement
program got under way, however, private borrowing, notably in the
form of consumer, industrial and real estate, loans and corporate
securities, began to expand significantly. Of the leading financial
investor groups—life iasurance companies, mutual savings banks, and
commercial banks—^only mutual savings banks continued to use
Federal securities as their primary outlet for investment funds during
the year. The changes in the various investments of these institutions
during the year are outlined in the following table.
Estimated net changes in investments of leading financial investor .groups, fiscal
year 1947
[In billions of dollars]
Federal securities.
All other loans and investments
.
. . ._
.
Mutual savings banks
Commercial
banks
+0.7
-14.4
+7.6
+.6
Life insurance companies
—0.6
+4.0
45
REPORT OF THE SECRETARY OF THE TREASURY
Despite the impact of the Treasury's debt retirement program on the
various investor groups, and the increasiag importance of private
financing, Federal securities stUl constitute the most important single
asset in the balance sheets of the large financial institutional groups
in the country. In June 1947, Federal securities accounted for over60 percent of the earning assets of commercial banks. They accounted
for 60 percent of the assets of mutual saviags banks and close to 45
percent of the assets of insurance companies. Federal securities
constitute a third of the total liquid assets held by individuals (assets
in the form of currency, checking accounts, savings accounts of all
types, and Federal securities). I n spite of recent liquidations, over
10 percent of corporate current assets (iacluding inventories and
receivables) are in Federal securities, as compared with less than 5
percent before the war.
The following table shows the effect on each of the major investor
groups of the shift ia Federal financing from the ia tensive war finance
program to the postwar program of debt retiremxcnt. Commercial
banks and Federal Reserve Banks together showed a significant
decliae in Federal security holdings for the first year since before the
war. Meanwhile, nonbank investors continued to absorb securities
during 1947 but at a rate much below the peak of wartime investment.
Estimated net absorption of Federal securities,^ hy investor classes, fiscal years 1941
through 1947
[In billions of dollars]
1941
1942
1943
1944
1946
1946
_ _ . ._
1.2
7.0
12.4
14.8
.13.4
4.4
3.3
2. Other nonbank investors:
a. Insiirance companies
b. Mutual savings banks
_
c. Other corporations and associations 3..
d. State and local governments
...
e. Federal agencies and trust funds
.6
.3
-.1
.2
1.4
2.0
.5
3.0
.3
2.1
4.0
1.4
10.1
.6
3.7
4.1
2.0
10.2
1.7
4.8
5.4
2.3
4.1
2.1
5.8
2.6
1.9
-4.6.
1.2
4.2
-.2
.7
-5.1
.6
3.8
Investor classes
A. Nonbank investors:
1. Individuals 2
.
. _
f. Total other nonbank investors. _...___
3. Total nonbank investors
B. Banks:
1. Commercial banks..
. _'
2. Federal Reserve Banks . . . . . . . .
- 3. Total banks
_.
.. _
:
C Total increase in interest-bearing debt outstanding...
.
:
2.4
7.9
19.8
22.9
19.7
5.2
-.3
3.6
14.9
32.2
37.7
33.1
9.6
3.0
3.6
-.3
6.4
.5
26.2
4.6
16.2
^7.7
15.-8
6.9
.2
2.0
-14.4
-1.9
3.2
6.8
30.7-
23.9
22.7
2.2
-16.4
6.9"
21.8
6.3.0
61.6
55.7
11.8
-13.4
NOTE.—Figures are rounded and will not necessarily add to totals.
Footnotes on p. 41.
1947
46
REPORT OF THE SECRETARY OF THE TREASURY
This slowing-up of nonbank investment in Federal securities was
characteristic of other liquid. assets of nonbank investors as weU.
Nonbank checking accounts increased by about $3}^ billion in the
fiscal year 1947, as compared with a $12^ billion gain the preceding
year, and increases in savings accounts in commercial banks in 1947
were less than half the 1946 rate. Currency held by nonbank investors
was $.2 bUlion lower on June 30, 1947, than a year before. The
Federal deficit was, of course, ehminated as a contributing factor in
new liquid asset creation in 1947 and the expansion of private bank
credit accounted for practically all of the increase.*
SECURITIES OWNED BY THE UNITED/ STATES AND PROPRIETARY
INTEREST IN CORPORATIONS AND CERTAIN OTHER BUSINESSTYPE ACTIVITIES OF THE UNITED STATES GOVERNIMENT
SECURITIES OWNED
On June 30, 1947, the United States owned securities consisting of
capital stock, bonds, etc., of Government corporations and agencies
and indebtedness to the Government by railroads, farmers, shipowners, and others in the net face amount of $20,755 million; and
obligations of foreign governments arising out of World War I in the
principal amount of $12,660 mUlion. A statement of the securities
owned, exclusive of these foreign obligations, at the end of the fiscal
year 1947 is shown in the table on page 434. • An explanation of the
increase or decrease of such securities duriag the fiscal year 1947 is
shown in the table on page 436. A summary of the holdings of securities at the end of the last two fiscal years is shown in the following
table:
^
Summary of securities other than World War I obligations of foreign governments
owned by the United States Government, June SO, 1946 and 1947
[In millions of dollars]
Security
Capital stock of Government corporations
Paid-in snrplns of Government corporations
Bonds and notes of Government corporations
Other securities 2 _
Total all securities
Less interagency ownership:
Capitalstock
1
Paid-m surplus
Other securities
$2,446.1
37.9
1 11,672.1
1,645. 7
$2,656.7
1.0
11,945. 8
7,068.4
$111.6
-36.9
273.7
5,422. 7
16,800.8
21,571.8
5, 771.0
264.8
1.0
396.0
Total interagency ownership
Net securities owned
Increase or
June 30,1946 June 30,1947 decrease
(-)
_.
.2
264.9,
1.0
561.2
661.7
817.1
15,139.1
20,754. 7
156.3
.'
156.4
5,616.6
NOTE.—Figures are rounded and will not necessarily add to totals.
1 Exclusive of $1.0 million in transit for redemption.
2 Includes loans and advances by Farm Security Admmistration, Rural Electrification Administration,
Federal Works Agency, etc.
ft Detail on the relationship "between Federal fiscal operations and income flow and liquid asset formation
during the fiscal years 1941-1947 is shown In table 110.
REPORT OF T H E SECRETARY OF T H E TREASURY
47
In accordance with the act approved February 24, 1938 (52 Stat.
79), the Secretary of the Treasury canceled,during the year obUgations
of the Reconstruction Finance Corporation amounting to $.2 mUlion,
representing certain expenditures previously made by the Corporation.
This brought the total of the obligations of the Reconstruction Finance
Corporation canceled to $2,786 miUion, as shown in the following
table:
Reconstruction Finance Corporation:
'Amount
Obligations canceled through June 30, 1946
!_____ i $2, 785, 458, 704. 21
Obligations canceled during 1947 on account of expenditures for expenses of regional agricultural credit
corporations (sec. 201 (e) of Emergency Relief and
Construction Act of 1932; sec. 33 of Farm Credit
Act of 1937)
___.
214, 576. 40
Total through June 30, 1947
2, 785, 673, 280. 61
1 For detail of cancellations, see annual reports for fiscal years 1946, p. 81; 1945, p. 93; 1944, p. 94; 1943, p. 113;
1942, p. 41; 1941, p. 51; and 1940, pp. 114-115.
• ^
PROPRIETARY
INTEREST
IN
CORPORATIONS
AND
CERTAIN
OTHER
B U S I N E S S - T Y P E ACTIVITIES OF THE U N I T E D STATES GOVERNMENT
In order to show the amount of the Government's interest in Government corporations and certain other business-type activities, the
Treasury compUes balance sheets from reports received from such
corporations and activities which are published in the daily Treasury
statement (see p. 464). These statements show the amount and
classification of the assets and liabilities of the various corporations
and activities, the privately owned proprietary interest in corporations, and proprietary interest of the United States.
MONETARY DEVELOPMENTS
INTERNATIONAL FINANCE
In the course of the year ended June 30, 1947, active steps were
taken by the United States Government to settle some of the outstanding financial and monetary problems arising from war and to
assist in the process of reconstruction. The National Advisory
CouncU on International and Financial Problems-has acted as the
coordinating agency of the United States in these activities. The
Council advises and consults with the American representatives on the
International Bank for Reconstruction and Development and the
International: Monetary Fund. I t takes such actions as are required
of the United States Governnient by the Articles of Agreement of
these institutions, except in those matters which are reserved'for
congressional action by the Bretton Woods Agreements Act. - The
United States has participated in the work of international financial
reconstruction through its membership in these international organiza-^
tions and also tlirough ihe lending activities of United States agencies.
48
REPORT OF THE SECRETARY OF THE TREASURY
The International Fund and Bank.—During the fiscal year 1947 the
International Monetary Fuiid and the International Bank for Reconstruction and Development began active operations. The first
annual meeting of the Boards of Governors of both organizations
was held in Washington in September-October 1946. At these meet» ings additional rules and regulations were adopted, new members
admitted, and acijustments made in quotas and subscriptions. The
Secretary of the Treasury, John W. Snyder, as United States Governor
of both the Fund and the Bank, presided at these meetings.
The United States completed payment of its subscription to the
Fund and the Bank on February 26, 1947. In conformity wdtb the
Articles of Agreement-and the Bretton Woods Agreements Act, the
subscription to the Fund was paid partly in gold ($687,500,000.11),
and partly in cash ($280,499,999.89), and partly in nonnegotiable,
noninterest-beariag notes ($1,782,000,000). These notes are payable
on demand in dollars when needed by the Fund in its operations. Of
the total amount, $1,800,000,000 was paid from the exchange stabilization fund established by the Gold Reserve Act of 1934, and the balance
was treated as a public debt transaction. The United States also
completed the payment of the required 20 percent of its subscription
to the stock of the Bank. Cash payments amounted to $69,215,000,
and $565,785,000 was paid in the form of noninterest-bearing, nonnegotiable notes. The remaining 80 percent of the subscription will
not be caUed unless required to meet the Bank's obligations.
On September 18,1946, the Secretary of the Treasury communicated
the par value of the United States dollar for the purposes of the Fund
as 15^1 grains of gold, nine-tenths fine. This is the weight of the
gold dollar as fixed by the Presidential Proclamation of January 31,
1934. Other member countries similarly communicated the par values
of their currencies in terms of gold or of dollars of this weight and
fineness.
On December 18, 1946, the International Monetary Fund announced
that it had accepted the par values (communicated to it by the majority
of the member countries. The Fund recognized that some of these
par values, based on the existing rates of exchange, might require
adjustment at some future date since they might be "found incompatible with the maintenance of a balanced international payments
position and a high level of domestic economic activity . . .'' and
" t h a t at the present exchange rates there are substantial disparities
in price and wage levels in a number of countries.'' March 1,1947,
was the date established by the Fund for the beginning of exchange
transactions. At this date almost all of the member countries had
completed payment of their subscriptions. Exchange transactions
have begun with a few countries.
REPORT OF THE SECRETARY OF THE TREASURY
49
In the course of the fiscal year the International Bank began preparations for the issue of its obligations. Applications for loans totaling
more than $2 billion were received by the Bank. By the end of the
fiscal year one loan of $250 miUion was made to France.
National Advisory Council on International and Monetary Financial
Problems.—The National Advisory Council, composed of the Secretary
of the Treasury (Chairman), the Secretary of State, the Secretary of
Commerce, the Chairman of the Board of Governors of the Federal
Reserve System, and the Chairman df the Board of Directors of the
Export-Import Bank, was established by the Bretton Woods Agreements Act to coordinate the policies and the operations of the United
States representatives on the Fund and Bank and of all agencies of the
Government .making foreign loans or engaging in foreign financial,
exchange or monetary transactions. The Council has submitted its
report to the Congress through the President, and more complete data
on its activities may be found in these reports. (See exhibits 28 and 29 .
beginning on page 180 of this report.) i
^
In accordance with its statutory responsibility, the Council has coordinated a wide variety of foreign financial transactions by agencies,
of this Government, including foreign loans, financial settlement of war
accounts, and credits to foreign governments or their nationals for purchase of United States Government surplus property. Its objective
has been to achieve a consistent United States foreign financial policy.
Problems which before the institution of the Council had been dealt
with by individual agencies and, in many cases, with only incidental
coordination, have been made the. subj ect of joint discussion and joiiit
decision. The Council considers various criteria for foreign loans,
among which are the purpose of the loan, the need for the loan, the
borrower's ability to repay, the allocation of available loan funds
among applicant countries, the alternative sources of loan funds, and
the possible effects of the use of loan proceeds on the United States
domestic economy. On the basis of these criteria, the Council approves or disapproves consideration by the lending agency of a proposed loan or credit. Thus, through an over-all analysis, the Council
offers its best judgment to a lending agency with regard to particular
loan applications.
,
I n the course of the year the Council approved for consideration
loans by the Export-Import Bank aggregating $325 million. The
Council also has coordinated the policies of Government agencies responsible for the settlement of lend-lease and surplus property. Agreements for the mutual settlement of lend-lease and other wartime obligations have been made with the United Kiagdom, France, Belgium,
South Africa, India, Australia, the Netherlands, and New Zealand.
Negotiations for the settlement of lend-lease and surplus property
50
REPORT OF THE SECRETARY OF THE TRIEASURY
matters have been undertaken with the Union of Soviet Sociahst
Republics, China, Greece, Czechoslovakia, and Norway. In the case
of Italy, the Council, after consulta/tion with congressional committees
and the Comptroller General, recommended that the Treasury should
make payment, upon certification, by the War Department, to the
Italian Government of dollars set aside in the Secretary of the Treasury's accounts to cover expenditures made by the United States
Armed Forces in Italy for the procurement of supplies, services, and
facilities. This,recommendation was approved by the President.
The Council has formulated general policy for the guidance of the
Office of the Foreign Liquidation Commissioner, Department of State,
in financing surplus property sales abroad. These sales are made for
dollars, wherever possible, and credits for the balance are extended
under standard conditions. This policy was coordinated with the
lending policy of the Export-Import Bank.
The CouncU also approved for consideration by the War Assets
Administration credits of $110 mUlion to finance sales of domestic
surplus property to foreign governments. The United States Maritime Commission approved of $261 million for the purchase of ships
avaUable for disposal by the Conimission after consideration by the
National. Advisory CouncU.
The Council recommended to Congress the authorization of an
emergency loan to meet the budgetary needs of the Philippine Government for the current fiscal year, and initiated the establishment of
a Joint PhUippine-American Finance Commission to study the
financial and budgetary problems of the PhUippine Government.
Congress, by an act approved August 7, 1946, authorized the Reconstruction Fiaance Corporation, after consultation with the Council,
to extend credits up to $75 mUlion to the PhUippiae Republic duriag
the fiscal year 1947, on appropriate terms and conditions. On the
basis of the interim recommendations made by the Joint Fiaance
Commission, the Reconstruction Finance Corporation, after consultation with the Council, extended credits of $70 mUlion to the Philippine'Republic. By the end of the fiscal year 1947, $10 mUlion of this
credit was repaid. The Joint Financial Commission submitted its
final report on June 7, 1947. The report outlined a comprehensive
financial, monetary, and trade program to achieve economic recovery
and development in the Philippines. The Commission reported that
if the substance of the program is put into effect, the Philippine Government will not require additional foreign loans to meet internal
budgetary deficits, and that the PhUippine economy should be able
to finance the ambitious program of construction and expansion'
already formulated. (Cf. House Document 890, 80th Cong., 1st sess.)
One of the important problems confronting the Council during this
REPORT OF THE SECRETARY OF THE TREASURY
51
year was the coordination of the policies of various agencies on interest rates and terms of repayment for credits extended to foreign
countries under the legislation governing these agencies. The
Council also considered a program of relief to go into effect on the
termination of the United Nations Relief and Rehabilitation Administration and expressed its opinion that the proposed program would be
consistent with the foreign financial policy of the United States
Government.
The Council has been assisted in its work by the President's Committee for Financing Foreign Trade, composed of bankers and business men appointed by the President on June 26, 1946. This Committee has met with the Council and has given valuable advice and
assistance to it.
T H E ANGLO-AMERICAN LOAN AGREEMENT
Congress, by joint resolution apjproved July 15, 1946, authorized
the Secretary of the Treasury, in consultation with the National
Advisory Council, to carry out an agreement dated December 6,1945,
between the United States and the United Kiagdom, and authorized
the Secretary to make $3,750 million available as a line of credit to
the United Kingdom, ia accordaiice with this agreement. The purposes of the line of credit are to facilitate purchases of goods and
services in the United States by the United Kingdom, to assist the
United Kingdom to meet postwar deficits in its current balance of
payments, to maintain adequate monetary reserves, and to assume
the obligations of multilateral trade, as defined in the agreement.
The United Kingdom was to make the sterliag receipts from current
transactions of all sterling area countries avaUable for current transactions in any currency area without discrimination. The United
States and the United Kingdom also agreed not to impose restrictions
on payments for current transactions of sums accumulated after
July 15, 1947. These obligations were to be assumed on July 15,
1947, unless in exceptional cases a later date was agreed upon by the
two governments after appropriate consultation. The United Kingdom also agreed that after July 15, 1946, it would not apply exhange
controls in such a manner as to restrict payments or transfers in
respect of the products which it imported from the United States, or
the use of sterling balances which United States residents had acquired
as a result of current transactions. Each of the governments agreed
not to discriminate against imports from the other country with
certain specified exceptions. The United Kingdom also stated its
intention to try to obtain agreement regardiag the settlement of its
accumulated sterling balances. The Government of the United
764788—48
5
52
REPORT OF THE SECRETARY OF THE TREASURY
Kingdom assumed the obligations agreed upon on July 15, 1947,
except with respect to certain countries with which the United Kingdom Government had not yet negotiated agreements.
POLICY ON GOLD AND SILVER
The Treasury continued its policy of selling and buying gold at $35
per fine ounce (plus or minus one-fourth of 1 percent and other Mint
charges) for the settlement of international balances. The Treasury
also continued the policy of enforcing the Gold Declaration of February 22, 1944, in which it is stated that the United States Treasury does
not recognize the transfer of title to looted gold and wUl not purchase
gold located outside the United States from foreign countries which
had not as of February 22, 1944, broken relations with the Axis or
which continued to buy gold from countries maintaiaiag relations
with the Axis, unless the Treasury is satisfied that such gold was not
acquired from the Axis or that the seller was not able to sell this gold
as a result of the acquisition of Axis gold. As of the end of the fiscal
year, settlements for the return of looted gold had been negotiated with
Switzerland and Sweden by the United States Government acting
jointly with the Governments of France and the United Kingdom.
Similar negotiations were under way with other countries subject to
the Gold Declaration.
On July 31, 1946, an act of Congress was approved by the President
providing that domestic silver mined after July 1, 1946, and tendered
to the Miats within a year after the ore from which it is derived was
mined, would be received for coinage by the Mints with a seigniorage
deduction of 30 percent. Consequently the Treasury's purchase price
for newly mined domestic silver is 90.5 cents per fine ounce. The act
also authorized the sale or lease by the Secretary of any,silver held or
owned by the United States, under such terms as he shall deem advisable, at not less than 90.5 cents per fine ounce. The Treasury sells
such sUver at 91 cents.
In the course of the year Belgium returned for the account of the
Lend-Lease Administration practically all of the silver which had been
lend-leased to her. This silver, however, was not transferred to the
accounts of the Treasury during the fiscal year.
STABILIZATION AGREEMENTS
. On May 13,1947, the Secretary of the Treasury and the Ambassador
of Mexico executed a new stabUization agreement between the twp
countries. Under the,terms of this agreement the United States
StabUization Fund agrees to purchase, on request of Mexico, Mexican
pesos to an amount equivalent to $50 million for the purpose of stabilizing the United States dollar-Mexican peso rate of exchange. This
REPORT OF THE SECRETARY OF THE TREASURY
53
agreement is to run for four years, beginning July 1, 1947. The agreement constitutes in effect an extension of the stabUization agreement
of 1941 with Mexico, which had been extended by agreement until
June 30, 1947. At the time of announcing this agreement, the Secretary and the Finance Minister emphasized that the stabilization agreement with Mexico is consistent with the aims and purposes of the
International Monetary Fund, and that it would serve to supplement
the efforts of the Fund to stabilize rates of exchange among the member countries.
FOREIGN FUNDS CONTROL ACTIVITIES
During the fiscal year 1947 Foreign Funds Control made extensive
progress in lifting its freezing controls and liquidating its operations.
Only those controls remain in operation which will assist Foreign
Funds Control in meetiag the followiag three residual problems:
{a) The discovery of enemy property concealed in blocked accounts
of persons ia certain foreign countries, (6) the disposition of blocked
assets of those countries and their nationals for which no unblocking
procedure has yet been provided, and (c) the control of United States
securities which disappeared from European countries during their
occupation by the Germans.
REMOVAL OF CONTROLS OVER CURRENT TRANSACTIONS
General License No. 94, which was initially issued by Foreign
Funds Control in December 1945, and which removes aU freeziag controls over current transactions with the blocked countries covered, is
now applicable to all countries and their nationals except Spain and
Portugal. This General License was made applicable to Germany
and Japan on March 4, 1947, when it was determined that the AUied
Military Authorities were in a position through local controls to implement fully this Government's policy of regulatiag commercial and
financial transactipns with Germany and Japan. Concurrent with
the completion of the respective negotiations establishing procedures
for unblockiag the assets of Sweden, Switzerland, and Liechtenstein,
General License No. 94 was made applicable to these countries.
PROGRESS IN UNBLOCKING ASSETS
General License .No, 95 provides a machinery for unblocking assets
ia the United States of certain European countries and their nationals.
Under this General License a certification procedure was estabhshed
which imposes on the foreign governments concerned the responsibility for investigating the real ownership of the blocked property
involved. Such property ia the United States is completely unblocked
when, after appropriate investigation, the foreign government whose
54
REPORT OF THE SECRETARY OF THE TREASURY
nationals are involved certifies the absence of enemy interest to the
banking institution holding such assets. The commitments of foreign
governments to carry out their responsibilities in connection with the
unfreezing machinery are incorporated in exchanges of letters between
the Secretary of the Treasury and officials of the respective countries.
During the fiscal year 1947 the privileges of General License No. 95
were extended to the following additional countries: Austria, Sweden,
Greece, Switzerland, Liechtenstein, and Poland. The assets of these
countries together with the assets of the countries previously covered
by General License No. 95 (France, Belgium, Norway, Finland, the
Netherlands, Czechoslovakia, Luxembourg, and Denmark) account
for over three-quarters of the assets origiaally blocked by Foreign
Funds Control, exclusive of enemy property. Progress has been made
towards the inclusion of Italy in General License No. 95 so that action
in this connection should take place shortly.
, I t was found, that there was little or no cloaking of enemy assets
through some blocked countries. Accordingly, during the fiscal year
1947 action was taken, without reference to General License No. 95,
to remove all the blocking controls from the assets of (a) all the Far
East except Japan, and (b) certain other smaller and less important
areas.
For the assets of the followiag countries no unblocking procedure
has been established: Germany and Japan, Bulgaria, Hungary and
Rumania, Spain and Portugal, and Estonia, Latvia, Lithuania, and
Yugoslavia. German and Japanese assets, ia general, will remain
blocked until they are vested by the Office of Alien Property in the
Department of Justice.
F O R E I G N F U N D S CONTROL I N THE P H I L I P P I N E S
On August 31, 1946, Treasury controls in the Philippines were
terminated and the Foreign Funds Control office in Manila was closed.
This action was based on the specific request of the Philippine Governinent which indicated that it had iastituted its o^va controls and that
further action by the Treasury was no longer required.
CONTROLS O V E R IMPORTATION OF SECURITIES AND CURRENCY
Shortly after its inception Foreign Funds Control issued regulations
controlling the importation of securities into the United States.
During the fiscal year 1947 considerable progress was made toward
limiting the scope of these regulations to make them applicable only
to those securities reported by European countries to the Treasury as
haviag disappeared duriag occupation by the Germans.
In April 1947, ioiport controls over currency were removed since
most of the iaiportant foreign countries, ia. cooperation with Foreign
REPORT OF THE SECRETARY OF.THE TREASURY
55
Funds Control, had taken measures to detect and segregate United
States currency within their borders in which there was an enemyinterest.
TAXATION DEVELOPMENTS
The only major revenue act that became law during the fiscal year
1947 was the Excise Tax Act of 1947, which indefinitely extended
certain wartime increases in excise tax rates. Section I which follows
briefly summarizes this act.
, A bUl to reduce individual income tax rates for 1947 and later years
was passed by the Congress but was disapproved by the President.
Another bill providing the same rate reductions for 1948 and later
years, but no reductions for 1947, was passed by the Congress shortly
after the end of the fiscal year and also was disapproved by the
President. Section I I briefly summarizes these bills, the views of the
Treasury concerning them, and the President's veto messages. I n
M a y 1947, the House Ways and Means Committee began hearings on
general tax revision. Section I I I summarizes the Treasury's suggestions for study of the whole revenue system preparatory to the consideration of general tax revision. Section IV lists other revenue
legislation taking effect during the flscal year 1947.
I.
EXCISE TAX
ACT
OF
1947
With the issuance of a Presidential proclamation declaring the end
of hostilities on December 31, 1947, certain war excise tax rates were
scheduled to expire June 30, 1947. These war excise tax rates were
provided by the Revenue Act of 1943 and were to expire six months
after the termination of hostilities as proclaimed by the President or
determined b y . a concurrent resolution of Congress. They included,
among others, the increase in the taxes on furs, jewelry, and toilet
preparations from 10 percent to 20 percent, the increase in the tax on
admissions from roughly 10 percent to 20 percent, and the increasein
the tax on distilled spirits from $6 to $9 a gallon.
On January 3, 1947, in his Budget Message for the flscal year 1948,
the President recommended that the war excise tax rates be continued.
He said, ^^When the time comes for excise tax revision, the Congress
should review the entire group of excise taxes rather than concentrate
attention on those that were imposed or increased during the war."
The Congress acted on the President's recommendation and
indeflnitely continued the war excise tax rates in the Excise Tax Act of
1947 (Public Law 17, March 11, 1947). I t was estimated that this
legislation would increase receipts of the flscal year 1948 by $1.1
billion.
56
REPORT OF THE.SECRETARY OF THE TREASURY
The Excise Tax Act of 1947 also amended section 2401 of the
Internal Revenue Code to provide that the tax on furs should not
apply to articles of which fur is the component material of chief value
unless the value of the fur is more than three times the value of the
next most valuable component material. Section 3469 (a) of the
Internal Revenue Code was amended to provide that the tax on transportation of persons should not apply with respect to transportation
which is outside the northern portion of the Western Hemisphere,
except with respect to any part of such transportation which is from
any port or station within the United States, Canada, or Mexico to
any other port or station within those countries. The act repealed
section 1806 of the Internal Revenue Code, which imposed a stamp
tax on passage tickets costing over $10 sold or issued in the United
States to any port or place not in the United States, Canada, Mexico,
Cuba, or Puerto Rico.
I I . iNDiViDUAL
INCOME
T A X REDUCTION
BILLS
PASSED
BY THE
CONGRESS
A . H . R . 1 (BOTH C O N G R E S S , 1ST SESSION)
1. Provisions ofthe bill.—On March 13, 1947, the House Ways and
Means Committee began hearings on H . R. 1, a bill that included a
general reduction of individual income tax rates and a special additional tax exemption of $500 for taxpayers over 65 years of age.
Under the rate reductions ia the bill, aU taxpayers with taxable net
iacomes below about $302,400 would have had their income tax for
1947 and later years reduced by a flat 20 percent. For higher incomes
the reduction would have become graduaUy smaller until it reached
10.5 percent above $5,000,000.
The bUl was amended by the House Ways and Means Committee
to reduce the tax by 30 percent for the flrst $1,000 of taxable income
and b y an amount falling rapidly to 20 percent a t a taxable income of
approximately $1,400. With these amendments it passed the House
of Representatives. I n the Senate, the biU was further amended to
cut the reduction from 20 percent to 15 percent on taxable incomes
between $79,700 and $302,400. The Senate biU aUowed one-half of.
the rate reductions fbr the calendar year 1947 and the full reductions
for later years.
As flnaUy passed by the Congress, H. R. 1 provided a tax reduction
of 30 percent for the flrst $1,000 of taxable income and a reduction
falling rapidly to 20 percent at a taxable income of about $1,400.
For taxable incomes between $1,400 and $136,700, the reduction was
a flat 20 percent. For larger incomes, the reduction tapered off to
about 10.5 percent. These reductions were applicable in full to 1948
and later years, and one-half of the fuU reduction was applicable to
REPORT OF THE SECRETARY OF THE TREASURY
57
the year 1947. Exemptions of persons over 65 years of age were
increased by $500 for 1947 and later years. I t was estimated that
for a full year of operation, at income payments of $166 billion, H. R. 1
would have reduced individual income tax liabilities by $3.8 billion.
2. Views of the Treasury.—In his statements before the House
Ways and Means Committee on March 13, 1947, and before the Senate
Finance Committee on AprU 22, 1947 (see exhibits 32 and 33). Secretary Snyder opposed any general tax reduction at that time. He expressed the view'that favorable economic conditions, the size of the
public debt, and uncertainties as to Government expenditures for the
flscal year 1948 all indicated the desirability of maintaining existing
tax rates. He recommended that such surplus as was likely to be
realized be applied to reduction of the public debt. The Secretary
stated that a comprehensive tax revision would be desirable at a later
time and recommended that the whole tax system be reviewed in
anticipation of that later revision. He expressed the opinion that immediate enactment of H. R. 1 would make it more difficult to work out
a desirable, comprehensive revision at the appropriate tiaie. The
Secretary also opposed H. R. 1 on the grounds that it gave too little
tax reduction to lower incomes relative to the reduction granted to
higher incomes.
3. The Presidents veto message.—On June 16, 1947, the President
returned H. R. 1 to the House of Representatives without his approval.
He stated that the bUl represented ^'the wrong kind of tax reduction,
at the wrong time" (see exhibit 35). The President expressed the
view that reductions in income tax rates were not required to provide
additional purchasing power or to permit necessary investment and
business expansion. Under existing economic conditions, the President
recommended that any surplus of Government receipts over expenditures be applied to reduction of the public debt. The President also
objected to H. R. 1 on the grounds that i t gave disproportionate
reductions in high income brackets as compared with low income
. brackets and thus did not give relief where it was needed most. The
President recommended the immediate planning for a thoroughgoing
revision of the tax system, including not only individual income tax
rates but the entire field of tax revenues.
B.
H. R. 3950 (BOTH CONGRESS, 1ST SESSION)
In July 1947, the Congress passed H. R. 3950, which differed from
the earlier bill only in that no tax reduction was made for 1947.
On July 18, 1947, the President returned this bill without his
approval.^ He stated that conditions stUl called for the maintenance
of existing tax rates and reduction of the public debt and that the
same objections applied to H. R. 3950 as to H. R. 1 (see exhibit 36).
58
III.
REPORT OF THE SECRETARY OF THE TREASURY
TREASURY SUGGESTIONSINCONNECTION W I T H A COMPREHENSIVE
R E V I E W OF THE FEDERAL T A X SYSTEM
On May 19, 1947, the House Ways and Means Committee began
public hearings in connection with a comprehensive review of the
Federal tax system, and Secretary Snyder appeared as the first witness.
(Secretary Snyder's statement appears in this report as exhibit 34.)
The Secretary indicated his approval of the Committee's course of
action, and stated that only on the basis of such a comprehensive
study would it be possible to lay a sound foundation for future tax
legislation.
The Secretary made no recommendations for specific tax revision.
However, he outlined the tests of a sound tax system and called attention to areas that he believed needed special study. He stated that
the tax system should produce adequate revenue and should be
equitable in its treatment of different groups. Taxes should interfere
as little as possible with the incentives to work and invest and should
help maintain broad consumer markets. Taxes should be as simple
to administer and comply with as possible. The Secretary stressed
the need for a flexible revenue system that would change with changing
economic conditions but recommended that necessary flexibUity be
conflned largely to changes in tax rates and exemptions and that insofar as possible a stable basic tax structure be maintaiaed.
The Secretary commented briefly on 21 major tax items under study
in the Treasury Department, which he believed merited special
consideration. These iacluded items in the flelds of business taxes,
iadividual income taxes^ excises, estate and gift taxes, and social
security taxes. In addition a number of technical tax problems
needing attentioii were mentioned.
The Secretary offered the Committee the cooperation of the Treasury tax staff in the important task before it. He declared that the
development of a modern tax system that would best serve the
country called for the cooperation of the legislative and executive
branches of the Federal Government and also for the cooperation of
the States aiid localities.
IV.
OTHER R E V E N U E LEGISLATION
Public Law 558, July 27, 1946, in section 2 amended section 3508
of the Internal Revenue. Code to provide that no tax should be
imposed on the manufacture, use, or importation of sugar after
June 30, 1948.
Public Law 572, July 31, 1946, amended sections 1500, 1501 (a),
1510, 1520, 1532 (b), 1532 (d), and 1532 (e) of the Internal Revenue
Code. These amendments to the Railroad Retirement Acts increased
REPORT OF THE SECRETARY OF THE TREASURY
59
the tax rates, provided technical adjustments to coverage deflnitions,
^and put the basis of the tax on a *^paid" rather than^^earned" basis.
Public Law 575, July 31, 1946, provided in section 4 that certaia
claims by employees or former employees of the United States for
additional overtime, leave, and holiday compensation should, if
certified for payment, be paid without withholding any amount
for taxes.
Public Law 578, July 31, 1946, amended sections 22 (b) (9) and (10)
of the Internal Revenue Code to extend to taxable years beginning
prior to January 1, 1948, the exclusion from gross iacome provided by
these sections of income realized by a corporation through purchase
of its own bonds, debentures, or other evidences of indebtedness, aiid
^also ia the case of railroads, gain realized from the cancellation of
iadebtedness in bankruptcy proceediags. .Section 2 of the act extended
untU December 31, 1947, the period of time withui which claiois
could be filed for credit or refund based upon an overpayment of tax
as a result of the failure to take a deduction for a war loss relatiag to
any taxable year beginniag in 1941 or 1942.
Public Law 669, August 8, 1946, provided in section 2 that for the
purpose of Federal income, estate, and gift taxes, gifts and bequests
accepted by the Postmaster General under the authority of the act
for the benefit of the library of the Post Ofiice Department shaU be
deemed gifts and bequests to or for the use of the United States.
Public Law 671, August 8, 1946, in amending the First War Powers
Act of 1941 added, among other things, section 36 to the Trading
With the Enemy Act of October 6, 1917. This provided for payment
of Federal, State, and local taxes by the Alien Property Custodian,
notwithstanding the fact that property vested in or transferred to
him becomes the property of the United States. Express provision
was made for the payment of retirement and survivorship beneflts
under title I I of the Social Security Act. The time of payment was
left flexible, even though the Custodian is required to pay taxes, so
as not to interfere with the proper administration of vested property.
Normal tax procedures were made applicable, and payment of Federal
taxes was to be made in accordance with regulations prescribed by
the Commissioner of Internal Revenue with the approval of the
Secretary of the Treasury.
Public Law 719, August 10, 1946, cited as the ^'Social Security Act
Amendments of 1946," amended clauses (1) and (2) of sections 1400
and 1410 of the Internal Revenue Code to postpone until 1948 the
increase in the rates of the taxes imposed therein. Section 1607 (c)
of the Internal Revenue Code was amended to extend the deflnition
of the term /'employment" to include service on or in connection
with American vessels. Section 1607 (c) (4) of the Internal Revenue
60
REPORT OF THE SECRETARY OF THE TREASURY
Code was amended to exclude from the term^^emploj^ment" service
performed on or in connection with a vessel not an American vessel^
by an employee, if the employee is employed on and in connection
with such vessel when outside the United States. ^'American vessel"
was deflned in a new subsection (n) of section 1607 of the Internal
Revenue Code. Paragraph (17) was added to section 1607 (c) of the
Internal Revenue Code to exclude certain flshing services from the
term '^employment." Sections 1426 (a) (1) and 1607 (b) (1) of the
Internal Revenue Code were amended to provide that the $3,000
limitation therein set forth be computed without regard to the year
in which the employment occurred for which remuneration was paid.
Section 1401 (d) of the Internal Revenue Code was amended to conform its special refund provisions to the above amendments to sectionso
1426 (a) (1) and 1607 (b) '(1> of the Internal Revenue Code. Sections
1603 (a) (4) and 1607 (f) of the Internal Revenue Code were amended
to permit the withdrawal from the Federal unemployment trust
fund, for the payment by a State of disability compensation, of any
payments which that State may have collected from employees under
its unemployment compensation law and deposited in the trust fund, or •
which it may in the future collect and deposit.
Public Law 724, August 13, 1946, the Foreign Service Act of 1946,
provided in section 1021 (e) that for .the purpose of Federal income,
estate j and gift taxes, any gift, devise, or bequest accepted by the
Secretary of State under authority of the act shall be deemed to be a
gift, devise, or bequest to or for the use of the Uhited States. A new
subsection (k) was also added to section 116 of the Internal Revenue
Code to provide for the exclusion from gross income, for income tax
purposes, of amounts received by officers or employees of the Foreign
Service as allowances or otherwise under the terms of title I X of the
act.
Public Law 2, February 1, 1947, amended section 3126 (a) of the
Internal Revenue Code to provide that industrial alcohol plants
might produce sugars or sirups simultaneously with alcohol until
May 1, 1948.
Public Law 7, February 26, 1947, was intended to facilitate the
acquisition of a site in the city of New York for the headquarters
of the United Nations. By amendments to sections 23 (o), 23 Xq),
1004 (a) (2), 1004 (b), 812 (d), and 861 (a) (3) of the Internal Revenue
Code, it provided that for the period of one year beginning December 2, 1946, and ending December 1, 1947, gifts made to the United
Nations exclusively for such purpose shall be treated for Federal, tax
purposes as public and charitable gifts are now treated under the
income, estate, and gift tax provisions of the Internal Revenue Code.
Public Law 31, AprU 14, 1947, provided in section 3 that the taxes
REPORT OF THE SECRETARY OF THE TREASURY
61
imposed by sections 3469 and 3475 of the Internal Revenue Code
should not apply to amounts paid for ocean transportation for the
Boy Scouts of America or their property in attendiag the World
Jamboree of Boy Scouts in France in 1947.
Public Law 42, AprU 29, 1947. suspended untU AprU 1, 1949,
copper, copper-bearing ores and concentrates, and various articles
containing copper (other than copper sulphate) from the import tax
imposed by section 3425 of the Internal Revenue Code.
Public Law 112, June 25, 1947, amended sections 403 (d) (3) and
452 (c) of the Revenue Act of 1942 to extend through June 30, 1948,
the time within which a power of appoiatment may be released without incurring estate or gift tax liability. Section 1000 (e) of the
Internal Revenue Code was amended so as to extend the time for
tax-free relinquishment by a grantor of certaia powers to name new
beneflciaries or to change the interests of existing beneflciaries of a
trust through December 31, 1947, or a later date if it is shown to the
satisfaction of the Commissioner of Internal Revenue that failure to
release such powers prior to that date is for reasonable cause. Sections
22 (b) (9) and (10) of the Internal Revenue Code were also amended
to extend to taxable years beginning after December 31, 1947, and
prior to January 1, 1950, the exclusion from gross income provided
by. those sections of income realized by a corporation through purchase of its own bonds, debentures, or other evidences of indebtedness,
and also, in the case of railroads, gain realized from the cancellation
of indebtedness in bankruptcy proceedings.
Public Law 113, June 25, 1947, amended section 115 (a) of the
Internal Revenue Code, for taxable years beginning after December
31, 1943, to provide that the deflnition of dividends for purposes of
personal holding companies be considered to be net income under
subchapter A of Chapter 2 of the Internal Revenue Code less the net
operating loss credit for the preceding taxable year provided in section 26 (c) (1), the dividend carry-over provided in section 27 (c),
and the deduction for amounts for retirement of indebtedness provided in. section 504 (b) of the Internal Revenue Code.
Public Law 116, June 25, 1947, amended section 4 of the Public
Debt Act of 1941, as amended, to make clear that Federal securities
were not subjected by that act to such taxes as Congress might enact
for local areas under Federal jurisdiction. (See exhibit 22.)
Public Law 131, June 30, 1947, amended section 5 (f) of Public
Law 45, April 29, 1943, as amended, and sectioii 5 (f) of the Farm
Labor Supply Appropriation Act of 1944, to extend until July 1,
1949, the period during which income from agricultural labor and
nursing services may be disregarded by the States in making old-age
assistance payments.
62
REPORT OF THE SECRETARY OF THE TREASURY
SPECIAL PROCUREMENT ACTIVITIES
LEND-LEASE
Under the lend-lease program, which was authorized by the ''Act
to Promote the Defense of the United States", approved March 11,
,1941, the Bureau of Federal Supply (known as the Procurement
Division prior to January 1, 1947) was one of the agencies designated
and allotted funds to make purchases of specifled products. (See also
page 86.) After the surrender of Japan and the general termination
of the lend-lease program, the several lend-lease recipients were
offered the opportunity to acquire on reasonable credit payment terms
the civilian type lend-lease goods on order on VJ-day. Exportation
of these goods was continued during the flrst half of the flscal year
1947, but was terminated thereafter in accordance with a provision
of the Third Deflciency Appropriation Act of 1946, which prohibits
expenditures in connection with shipments abroad of lend-lease
materials after December 31, 1946.
On June 30, 1947, there remained in storage 27,500 tons of material,
having an approximate value of $14,000,000, awaiting congressional
action as to whether shipments should be resumed or materials declared surplus. As of July 1, 1946, there were on hand 54,454 tons
of material which had been declared surplus to the War Assets Administration, and during the year an additional 47,548 tons were so
declared, making a total of 102,002 tons. Of this quantity the War
Assets Administration took custody of 84,637 tons during the year
leaving a balance of 17,365 tons on June 30, 1947, for disposition by
the War Assets Administration.
U N I T E D NATIONS R E L I E F AND REHABILITATION ADMINISTRATION
Participation by the United States in this program was authorized
by the act of March 28, 1944 (58 Stat. 122), and funds were allocated
to the Bureau of Federal Supply for the procurement of materials and
supplies necessary for agricultural and industrial relief and rehabilitation of countries devastated by the war. Purchases by the Bureau
of Federal Supply under this program, including accessorial charges
and other costs, have approximated $486,000,000. (See also page 88.)
RENEGOTIATION OF CONTRACTS
As provided for in the Renegotiation Act, as amended, the Price
Adjustment Board of the Treasury Department, located in the Bureau
of Federal Supply, renegotiated with 324 contractors holding contracts for materials used in the war and recovered from them gross
excessive proflts in the sum of $11,399,683 during thiB flscal year 1947.
Between 1943, when this work was started in the Treasury Depart-
REPORT OF THE SECRETARY OF THE TREASURY
63
ment, and the end of the flscal year 1947, there were 1,387 contractors
assigned by the War Contracts Price Adjustment Board to the
Treasury Price Adjustment Board for the renegotiation of their contracts. The contracts of 1,384 contractors were renegotiated with a
gross recovery of $49,339,692 to the Government. With the exception of one contract involving 3 contractors, the actual renegotiation
of cases assigned to the Treasury Board was completed on June 30,
1947.
CONTRACTS
TERMINATED
At the request of the Department of State, lend-lease contract
terminations were effected during flscal year 1947 in accordance witb
the Contract Settlement Act of 1944, as follows:
Number
Type of action
Contracts terminated
Contracts settled without cost
Claims
filed.
Claims settled
.
_..
_
_
_
887
638
94
394
Contract
price of items
canceled
$52,874, oob
42, 635,000
12, 858,000
48, 987,000
•
During the year gross payments to contractors amounted to
$8,587,000. As of June 30, 1947, 2 contract terminations with a
value of $214,000 were awaiting claims and 6 claims involving $2,384,000 awaited settlement.
STRATEGIC AND CRITICAL
MATERIALS
The Strategic and Critical Materials Stock Piling Act (Public Law
520, approved July 23, 1946) completely revised the act of June 7,
1939, as amended, and authorized the purchase by the Bureau of
Federal Supply of strategic and critical materials essential to the
needs of industry for the manufacture of supplies for the arhied forces
and industry in time of emergency, and to encourage further development of such materials within the United States. Materials to be
purchased and stockpiled are selected by the Army and Navy Munitions Board.
Funds obligated for the purchase of strategic and critical materials
prior to the beginning of the flscal year 1947 amounted to $54,983,152,
and during the flscal year additional obligations amounted to $68.888,533, making a total of $123,871,685.
ESTIMATES OF RECEIPTS
The Secretary of the Treasury is required each year to prepare and
submit in his annual report to the Congress estimates of the public
revenue for the current flscal year and for the flscal year next ensuing
64
REPORT OF THE SECRETARY OF THE TREASURY
(Public No. 129, February 26, 1907). The estimates of receipts from
taxes and customs are now made by the Treasury Department in
December of each year on the basis of legislation existing at the time
of making the estimates. The estimates of miscellaneous receipts,
including receipts from proposed legislation, are prepared in general
by the agency depositing the receipts in the Treasury.
The detaUs of estimated and actual receipts are shown in table 114
beginning on page 524. Throughout the tables shown in this exposition
the flgures are rounded and will not necessarily add to totals.
TOTAL AND N E T R E C E I P T S
Net budget receipts under existing legislation (daily Treasury
statement basis) are estimated in the amounts of $45,210.4 mUlion
in the flscal year 1948 and $44,476.9 mUlion in the flscal year 1949.
The estimate for 1948 represents an increase of $1,951.6 mUlion over
actual receipts for 1947. A decrease of $733.5 million, occasioned by a
large decrease in receipts from nontax sources, is estimated for 1949
as compared with 1948.
,
Total budget receipts are estimated to amount to $46,837.4 mUlion
in 1948, an increase of $2,119.1 mUlion over actual receipts in 1947,
and $46,148.9 mUlion in 1949, a decrease of $688.5 mUlion from 1948.
Percentage distributions, by sources, of estimated total receipts in
1948 and 1949 and actual receipts in 1946 and 1947 are shown in the
following table.
Percentage distributions of total budget receipts, hy sources
Source
Individual income tax
.J
Corporation income and excess profits taxes.
Miscellaneous" internal revenue._
Employment taxes i
1
Customs
Miscellaneous receipts
Total budget receipts.
Actual,. 19461Actual, 1947 Estimated,
1948
Estimated,
1949
41.4
28.4
17.4
3.9
1.0
7.9
43.9
. 21.6
18.0
4.6
1.1
10.8
47.0
20.4
17.4
5.1
.8
9.3
22.0
18.0
6.4
.8
5.0
100.0
100.0
100.0
100.0
1 Includes railroad unemployment insurance contributions.
The individual income tax continues as the leading source of
revenue and is estimated to account for about 50 percent of total receipts in the flscal year 1949. Estimated receipts in 1948 and 1949
represent the largest absolute amounts ever collected from this source.
Corporation income and excess proflts taxes maintain their position
as the second most important revenue source and iacrease slightly on
both absolute and percentage bases in 1949, after having decliaed on
both bases in 1947 and 1948. Miscellaneous internal revenue increases in absolute amount in both flscal years and on a percentage
basis in 1949, but declines slightly in 1948 on a percentage basis. Re
REPORT
65
OF THE SECRETARY OF THE TREASURY
ceipts from employment taxes increase on both absolute and percentage bases. Receipts from customs and miscellaneous receipts
decline in absolute amount and percentagewise. The decline in miscellaneous receipts reflecting nonrecurring revenue in the earlier years
represents the only signiflcant decrease estimated for any major receipts source.
FISCAL Y E A R
1948
Actual receipts in the flscal year 1947 and estimated receipts in
1948 are compared by major sources in the following table.
Total and net hudget receipts, hy sources
[In millions of dollars]
Source
Actual, 1947
Estimated,
1948
Increase or
decrease (—),
1948 over 1947
Individual income tax
Corporation-income and excess profits taxes..
Miscellaneous internal revenue
Employment taxes *
.
:
Customs
Miscellaneous receipts
19, 628.8
9, 676.8
8,049. 5
2,038. 5
4.94.1
4,830. 7
21,951.0
9, 548. 0
8,162. 0
2,409. 5
394.0
4,372.9
2, 322. 2
-128.8
112.5
371. 0
-100.1
-457.8
Total budget receipts
.
.
Deduct: Appropriation to Federal old-age and survivors insurance trust fund..
:...
L...
44, 718. 3
46,837. 4
2,119.1
1, 459. 5
1,627.0
Net budget receipts..
167.5
43, 258.8
1,951.6
1 Includes railroad unemployment insurance contributions.
Net budget receipts in the flscal year 1948 are estimated to amount
to $45,210.4 million, an increase of $1,951.6 million over actual
receipts in the preceding year. Three revenue sources increased and
three decreased, but the large increase in the most important revenue
source, the individual income tax, accounts for the net over-all increase.
Individual income taxes.—The details of the yield of the individual
income tax are shown in the following table.
Actual, 1947 Estmmted,
Source
Increase,
1948 over 1947
In millions of dollars
1
Withheld
Not withheld ...•.
Back taxes
.
Total individual income tax
.'
.
10,013.1
9,064. 7
551.0
11, 327.0
9,-997. 0
627.0
1,313.9
932. 3
76.0
19,628.8
21, 961. 0
2, 322. 2
The same individual income tax rates affect the flscal years 1947
and 1948; therefore the changes in receipts are the result of changes
in income levels. Individual income taxes withheld increase in 1948
as a result of higher salaries and wages subject to withholding. The
increase in income taxes other than withheld in 1948 reflects the
greater tax liabilities resulting from the larger incomes. Back tax
66
REPORT OF THE SECRETARY OF THE TREASURY
collections are a function of the liabilities of previous years and are
estimated to increase, reflecting the increasingly large individual income tax liabilities of the past several years.
Corporation income and excess projits taxes.—The detaUs of the taxes,
from this source appear in the table below.
Actual,
1947
Estimated,
1948
Decrease, 1948
over 1947
Source
I n millions of dollars
I n c o m e tax a n d excess profits tax
Declared value excess profits tax._:.
B a c k taxes
.
...
T o t a l corporation income a n d excess profits taxes
8, 518.2
36.7
1,121.9
8,442.0
2.0
1,104.0
76.2
34.7
17.9
9,676.8
9, 548.0
128.8
Corporation income and excess proflts tax receipts in the flscal year
1947 reflect incomes and tax provisions of the calendar years 1945 and
1946 whUe receipts in the flscal year 1948 reflect incomes and tax
provisions of the calendar years 1946 and 1947. The repeal of the
excess proflts tax and the reduction in surtax rates under the Revenue
Act of 1945 were nearly offset by the rising trend of corporate income
during the calendar years 1945, 1946, and 1947. The relatively small
declared value excess proflts tax was repealed by the Revenue Act of
1945 and receipts from this source virtually ceased after the end of
the flscal year 1947. I t is estimated that receipts from back taxes
will show only a small decline and that total receipts from direct
taxes on corporations wUl be only slightly lower in the flscal year 1948
than in the flscal year 1947.
Miscellaneous internal revenue.—Receipts from this source by major
groups are listed in the following table.
Actual,
1947
Estimated,
1948
Source
Increase or
decrease (—),
1948 over 1947
I n millions of dollars
E s t a t e a n d gift taxes
_
L i q u o r taxes
T o b a c c o taxes
'....
S t a m p taxes
M a n u f a c t u r e r s ' excise taxes
R e t a i l e r s ' excise taxes
Miscellaneous taxes *
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
T o t a l miscellaneous i n t e r n a l r e v e n u e
J...
. . . . ._
.
779.3
2, 474. 6
1, 237.8
80.0
1,426.2
514.2
1, 552. 8
-14.4
842.0
2, 276. 0
1, 302.0
69.0
1, 621.0
453. 0
1,599.0
62 7
— 198 6
64.2
—11 0
195.8
—61.2
46 2
14.4
8,049. 5
8,162. 0
112.6
The small iacrease estimated for miscellaneous internal revenue
represents the net effect of offsetting changes in the several tax groups.
Liquor tax receipts are expected to decline from the exceptionally high
collections of the flscal year 1947, which reflected substantial inventory
accumulation. Declines are also estimated in collections of stamp
taxes, principally because of an expected decrease in activity in new
67
REPORT OF THE SECRETARY OF THE TREASURY
securities, and in retaUers' excise taxes as a result of the decreased
coverage of the tax on furs effective AprU 1, 1947, and also because of
a general falling off in sales of commodities taxable under the retaUers'
excise taxes as more durable goods become avaUable to consumers.
The total decrease estimated for these three groups is more than offset
by the iacreases estimated in collections of estate and gift taxes, in
manufacturers' excise taxes as consumers' durable goods increase in
supply, and in tobacco taxes and miscellaneous taxes, reflectiag better
supply and increased income levels.
Employment taxes.—The yields of the various employment taxes
are shown below.
Actual,
1947
Estimated,
1948
Increase,
1948 over 1947
Source
In millions of dollars
Federal Insurance Contributions Act
Federal Unemployment Tax Act
Railroad Retirement Tax Act
Railroad unemployment insurance contributions i
.
Total employment taxes
Deduct: Appropriation to Federalold-age and survivors insur. ance trust fund.
Net employment taxes..
1,459.5
184. 8
380.1
14.2
1,627.0
211.0
• 557.0
14.5
167. 5
26.2.
176.9
.3
371.0
2,038. 6
2,409. 6
1,469.5
1, 627.0
167.5
579.1
782.6
203.4
1 Not classified as an employment tax under the Internal Revenue Code.
The estunated increase in receipts in the flscal year li948 over 1947
is based on higher" industrial and raUroad pay rolls and on an increase
in the tax rate under the Railroad Retirement Tax Act. The rate
change from 3K percent to bYi percent each on the carriers and on their
employees beginniag on January^ 1, 1947; was reflected in receipts
under this act^begianiag with the last quarter of the flscal year 1947.
By provision of Public Law 379, approved August 6, 1947, the rates
of tax under the Federal Insurance Contributions Act remaia at
1 percent each on the employer and employee duriag the period reflected in the receipts.
Customs.—Customs receipts are estimated to be $394.0 million in
the flscal year 1948 or $100.1 miUion less than in 1947. This decrease
is primarUy a consequence of rate changes.
Miscellaneous receipts.—The decrease in miscellaneous receipts is
estimated for the flscal year 1948 because certain of the flscal year
1947 receipts from this source were nonrecurriag.
FISCAL Y E A R
1949
Estimated receipts in the flscal years 1948 and 1949 under existing
legislation are compared by major sources in the following table.
764788—48
-6
'
\
'
68
REPORT OF THE SECRETARY OF THE TREASURY
Total and net hudget receipts, by sources
[In millions of dollars]
E s t i m a t e d receipts
Source
1948
I n d i v i d u a l income tax
:...
C o r p o r a t i o n income and excess profits t a x e s .
Miscellaneous internal r e v e n u e
E m p l o y m e n t taxes i
Customs
Miscellaneousreccipts
—
—
T o t a l b u d g e t receipts
D e d u c t : A p p r o p r i a t i o n to Federal old-age a n d s u r v i v o r s insurance
trustfund
.
N e t b u d g e t receipts
Increase or
decrease (—),
1949 over '
1948
21,961.0
9, 548:0
8,162.0
2, 409. 6
394.0
4, 372.9
22, 506.0
10,158.0
8, 292.0
2,493.0.
378.0
2, 321.9
665.0
610.0
130.0
83.6
-16.0
-2,051.0
46,837. 4
46,148. 9
688.5
1, 627.0
1, 672:0
46.0
45, 210.4
44, 476.9
-733. 6
1 Includes railroad u n e m p l o y m e n t insurance c o n t r i b u t i o n s .
Net budget receipts in the flscal year 1949 are estimated to amount
to $44,476.9 million, a decrease of $733.5 mUlion from estimated
receipts ui 1948. All of the tax sources show iocreases with the
exception of customs which is expected to show a slight decrease, but
this iacrease in receipts from tax sources is offset by the substantial
decliae in miscellaneous receipts which, for the most part, comprise
receipts from nontax sources.
Individual income tax.—The details of the yield of the individual
income tax are shown io the following table.
E s t i m a t e d receipts
•
•
.
N
'
1948
Source
•
.
•
;
•
.
'
Withheld
N o t withheld
B a c k taxes
'
0-
_.
-
T o t a l individual income tax_
-
_..
1949
Increase,
1949 over
. 1948
I n millions of dollars
11, 327.0
9,997.0 •
627.0
11, 767. 0
10,071.0
678.0
21, 951.0
22, 606. 0
-
430.0
74.0
51.0
556.0
Individual iacome tax receipt,s from withholdiag are estimated to
iacrease slightly ia the flscal year 1949. This increase results from
an estunated increase ia salaries and wages subject to withholding.
Beginning in the calendar year 1949 mUitary pay will be fully taxable
and will be subject to withholding. In addition, other salaries and
wages are estimated to increase in the flscal year 1949. Income tax
receipts other than withheld increase slightly, reflectiag iacreased
liabilities other than those paid through withholding. Back tax collections are estimated to continue to increase as a result of the continuing high level of individual iacome tax liabilities.
Corporatiori income and excess profits taxes.-—The details of the
receipts from this source appear in the following table.
69
REPORT OF THE SECRETARY OF THE TREASURY
Estiraated receipts
Source .
1948
1.949
Increase or
decrease ( - ) ,
1949 over
1948
In millions of dollars
Income tax and excess profits tax
Declared value excess proflts tax _
Back taxes
..-.
.
Total corporation income and excess profits taxes
8,442.0
2.0
1,104.0
8,902.0
1,256.0
460.0
—2.0
152.0
9, 648.0
10,158.0
610.0
The combined income level for the calendar years 1947 and 1948 is
estimated to be greater than the combined income level for the calendar years 1946 and 1947 and the receipts from income and excess
proflts taxes are estimated accordingly to be greater in the flscal year
1949 than in the flscal year 1948. Receipts from the declared value
excess proflts tax, which was repealed by the Revenue Act of 1945,
are negligible ia both years. Receipts from back taxes, which are
estimated to be slightly greater ia the flscal year 1949 than in the
flscal year 1948, reflect primarUy the rising trend of incomes during
the calendar years 1945, 1946, and 1947.
Miscellaneous internal.revenue.—Receipts from the major groups
of taxes included in this source are listed in the following table. :
Estimated receipts
Source
Increase Or
decrease (—),
1949 over
1948 .
In millions of dollars
Estate and gift taxes..
Liquor taxes
:
Tobacco taxes
Stamp taxes
....
Manufacturers' excise taxes..
Retailers' excise taxes
Miscellaneous taxes.
Total miscellaneous internal revenue..
842.0
2,276.0
1,302.0
69.0
1,621.0
463.0
1, 599.0
816.0
2,394.0
1,322.0
59.0
1,648.0
436.0
1,617.0
-26.0
118.0
20.0
-10.0
27.0
-17.0
18.0
8,162.0
8.292.0
130.0
Total misceUaneous internal revenue in the flscal year 1949 is not
expected to differ appreciably from estimated collections in 1948 as
income levels are estimated to be approximately the same in both
years.
^
.
Employment taxes.—The yields of the various employment taxes
under existing legislation are shown below.
Estimated receipts
Source
1948
1949
•Increase,
1949 over 1948
In millions of dollars
Federal Insurance Contributions Act
.
Federal Unemployment Tax A c t . . .
Railroad Retirement Tax Act
Railroad unemployment insurance contributions i
1,627.0
211.0
657.0
14.5
1,672.0
224.0
582.0
15.0
46.0
Total employment taxes
.
Deduct: Appropriation to Federal old-age and survivors insurance
trustfund
.—
-
2,409.6
2,493.0
83.5
1,627.0
1,672.0
45.0
821.0
38.5
Net employment taxes..
782, 5'
I Not classified as an employment tax under the Internal Revenue Code.
13.0
26.0
.6
70
REPORT OF THE SECRETARY OF THE TREASURY
The estimated increase in receipts in the flscal year 1949 over
1948 is based on higher industrial and railroad pay rolls and on an increase in the tax rate under the Raihoad Retirement Tax Act. The
rate change from 5% percent to 6 percent each on the carriers and on
their employees beginning on January 1, 1949, will be reflected in
receipts beginning with the last quarter of the flscal year 1949. For
the time interval reflected in these receipts there is no change in the
rate of contributions under the Federal Insurance Contributions Act.
Customs.^CustoiRs receipts are estimated to be $378.0 million in
the flscal year 1949 or $16.0 million less than in 1948. The rate concessions made by the United States under the Geneva Agreement
signed on October 30, 1947j will be applicable during the last half of
the flscal year 1948 and during the entire flscal year 1949. I t is expected that the resulting decrease in receipts will more than offset
the small increase in volume of imports anticipated for the flscal year
1949.
Miscellaneous receipts.—The decreasing income from this source
progressively continues to reflect the nonrecurrence of certain items
of income collected in earlier years.
ESTIMATES OF EXPENDITURES
Actual expenditures for the flscal year 1947 and estimates for the
fiscal years .1948 and 1949 are summarized in the following table.
Further details will be found in table 114. The estimates are based
upon flgures submitted to the Congress in the Budget for 1949.
Actual budget expenditures for the fiscal year 1947 and estimated expenditures for
1948 and 1949
• lln raillions of dollars. On basis of 1949 Budget Document!
Organization unit
Agriculture Department
Export-Import Bankof Washington
z
Federal Security Agency
......i..
.....
Federal Works Agency
1
National Military Establishment.^
........
Railroad Retirement Board
Reconstruction Finance Corporation
...
Treasury Department:
Credit to United Kingdom.
'...
.
Subscriptions to International Bank and Monetary Fmid.
Interest on the publicdebt
Refunds oftaxes and duties....
Other...
.Veterans' Admiaistration.
Universal training•
European Recovery Program.
.
Other foreign aid funds appropriated to the President..
All other
Adjustment to daily Treasury statement-'Total budget expenditures..
Actual,fiscal
. year
1947 1
Estimated,
. fiscal
year
1948
1, 529. 5
, 937. 2
925. 8
346.8
14, 584. 9
316. 5
592.9
1, 499. 5
735.6
1, 051. 8
584.2
12,486. 5
778.5
-442. 6
2, 050. 0
1,426. 2
. 4,958.0
2, 897. 3
949.9
7, 325.4
1, 700. 0
-175.0
3, 375. 9
+463. 9
42, 505. 0
5, 200. 0
2, 048. 7
658.0
• 6,498. 9
500. 0
753.6
3, 676. 2
37, 727. i
Estimated,
fiscal
year
1949
1, 086.1
500.0
1, 593. 6
622.0
12,724.0
592.5
-29.1
5, 250. 0
1,990.1
762.4
5, 810.9
400.0
4, 000.0
705.0
3, 661. 7
39, 669.0
1 These figures are taken from the,1949 Budget Document. They are based upon the Treasury's Combined Statement of Receipts, Expenditures, and Balances, and therefore differ from figures published in
the daily Treasury statement.
ADMINISTRATIVE REPORTS
71
BUREAU OF THE COMPTROLLER OF THE CURRENCYi
. The Bureau of the Comptroller of the Currency is responsible for the execution
of laws relating to the supervision of national banking associations. Duties of
the office include those incident to. the formation and chartering of new national
banking associations, the establishment of branch banks, the consolidation of
banks, the conversion of State banks into national banks, the issuance and retirement of preferred stock, and the issuance of Federal Reserve notes.
CHANGES IN THE CONDITION OF ACTIVE NATIONAL BANKS
The total assets of the 5,018 active national banks in the United States and
possessions on June 30, 1947, amounted to $83,413 million, a decrease of $2,580
million since June 29, 1946. The deposits of the banks in 1947 totaled $77,397
million, which was $3,098 million less than in 1946. The loans and securities
totaled $63,189 million, a decrease of $3,327 million during the year. Capital
funds of $5,309 million were $435 million more than in the preceding year.
The assets and liabilities of the active national banks are shown in the following
statement.
Abstract of reports of condition of active national hanks on the date of each report
. . from June 29, 1946, to June SO, 1947
[In thousands of dollars]
June 29,1946 Sept. 30,1946 Dec. 31,1946 June 30,1947
(6,018 banks) (6,014 banks) (5,013 banks) (5,018 banks)
ASSETS
Loans and discounts, including overdrafts
U. S. Government securities, direct obligationsObligations guaranteed by U. S. Governinent..
Obligations of States and political subdivisionsOther bonds, notes, and debentures
Corporate stocks, including stocks of Federal
Reserve Banks
14,498,441
17,309, 767
16,801,498
47,465,475 } 46,316,609 / 41,836,762
7,401
I
7,780
2, 670,103
2,464,266
2,659,698
1, 946, 946
1, 971,204
1,986,327
18,810,006
39,419, 227
6,378
2, 900, 981
1,896, 733
143, 654
153,448
163, 369
165,338
Total loans and securities
• 66,515,182
Cash, balances with other banks, including
reserve balances, and cash items in process
of collection 18, 661,851
Bank premises owned, furniture and fixtures...
495, 932
Real estate owned other than bank premises...
10,038
Investments and other assets indirectly representing bank premises or other real estate
46, 916
58,049
Customers' liability on acceptances outstanding.
Interest, commissions, rent, and other income
earned or accrued but not collected
140, 256
Other assets
64,831
65,911, 762
63,952, 583
63,188, 663
18, 910, 443
508,404
10,109
20,067,167
' 508,893
8,488
19,396,648
617, 373
8,580
46, 376
56, 899
45,464
73,270
. .46,267
52,282
148, 259
65, 559
137,022
57,376
141,047
63, 510
85, 993, 054
85, 657, 811
84,850,263
83,413,260
Totalassets
1 More detailed information concerning the Bureau of the Comptroller of the Currency is contained in
the annual report of the Comptroller.
73
74
REPORT OF THE SECRETARY OF THE TREASURY
Abstract of reports of condition of active naiional banks on the date of each report
from J u n e 29, 1946, to J u n e SO, i5.^.7—Continued
[In thousands of dollarsj
J u n e 29, 1946 Sept. 30.1946 D e c . 31, 1946 J u n e 30, 1947
(5,018 b a n k s ) (6,014 b a n k s ) (6,013 b a n k s ) (5,018 b a n k s )
LIABILITIES
Demand deposits of individuals, partnerships,
and corporations
'.
... ' 42,560,021
Time deposits of individuals, partnerships, and
corporations
17,173, 998
Deposits of U. S. Government and postal
7, 696, 306
savings.......--.
....
4,006, 769
Deposits of States and political subdivisions
7, 816, 787
Deposits of banks....
Other deposits (certified and cashiers' checks,
1,240,887
etc.)
:
Total deposits
.
Demand deposits
Time deposits.
.'Bills payable, rediscounts, and other liabilities
for borrowed money
Mortgages or other liens on bank premises and
other real estate
-.'
Acceptances executed by or for account of reporting banks and outstanding
Interest, discount, rent, and other income collected but not earned
.
.
Interest, taxes, and other expenses accrued and
unpaid
.
Otherliabilities
..--Totaliiabilities
44,320, 244
45,522,709
44, 751,010
17, 718, 574
18,031, 766
18, 556,606
5, 076, 413
3, 939,025
7,712,905
1, 843, 486
4,125, 722
8,170, 924
870,853
4, 562, 716
7, 433, 963
1,102, 473
1, 355, 243
1, 222,001
80,494, 758
79, 869, 634
79, 049, 839
77,397,149
62, 859,192
17,635,566
61, 651,040
18,218, 594
60, 468, 758
18,581,081.
58,209, 792
19,187,357
24,441
45,227
20, 047
27, 860
325
71, 061
• 339
339
302
66,072
83, 280
. 58,958
43, 367
50, 775
. 66,635
71,446
221,003
264,522
239,619
254, 817
223,436
266, 888
221, 525
327, 340
81,119, 477
80, 526, .483
79, 700, 464
78,104, 580
1, 683,489
2,100, 222
788, 759
1, 748, 588
. 2,176, 630
883, 238
1,756,621
2,275,884
785,658
CAPITAL ACCOUNTS.
Capitalstock
.
Surplus.-Undivided profits
'.:
Reserves and retirement account for preferred
stock-—
.-.
Total capital accounts.-Total liabilities and capital accounts
1, 770,871 •
2,329,951
874, 798
301,107
322,872
331,736
333,060
4, 873, 577
5,131, 328
5,149,799
5, 308, 680
85, 993, 064
86, 657,811
84, 850, 263
83,413,260
SUMMARY OF C H A N G E S I N N U M B E R AND
-
C A P I T A L STOCK OF N A T I O N A L
BANKS
T h e authorized capital stock of t h e 5,021 national banks in existence on J u n e 30,
1947 (including 3 b a n k s chartered during the, period b u t not open for business
as of t h a t date) consisted of common stock aggregating approximately $1,743
million, an increase during t h e year of over $112 million; a n d preferred stock
aggregating $29 million, a decrease during t h e year of over $27 million. T h e total
net increase of capital was more t h a n $85 million. During t h e year, charters were
issued to 32 national banks having an aggregate capital of over $9 million of
common stock only. There was a net decrease of 6 in t h e n u m b e r of national
banks in t h e system during t h e year by reason of voluntary liquidations and
s t a t u t o r y consolidations.
75
REPORT OF THE SECRETARY OF THE TREASURT
More detailed information regarding the changes in the number and capital
stock of national banks during the year is given in the following table.
Organization, capital stock changes, and liguidaiions of national banks, fiscal year 1947
Number of
banks
Increases:
Charter's issued
Capital stock:
132 cases by statutory sale
153 cases by statutory stock dividend
. -.
102 cases by stock dividend under articles of association
10 cases by conversion of preferred stock
-.
13 cases by statutory consolidation
Total increases
Decreases:
Voluntary liquidations
Statutory consolidations
Capital stock:
224 cases by retireraent
2 cases by statutory reduction
1 case by statutory consolidation
-_
32
Capital stock
Common
$9,250 000,
13,268 60019,890 647
7,479,690
7,051,435
60,359, 710
32
117,300 082
31
7
4,608 500
:
Preferred
102,000
50,000
----
$286,300
26,982,562
38
4,760,500
27,268.862
Net change
Charters in force June 30,1946, and authorized capital s t o c k -
-6
5 027
+112,539 582
1,630,672 275
-27,268,862
56,585,714
Charters in force June 30,1947, and authorized capital stock...
15 021
1,743,211 857
29,316, 852
Total decreases
I'This figure differs from that shown in the preceding table. Banks, that have discontinued business
although not in formal liquidation do not subrait reports of co'ndition but are included in this table. Included^ also are 3 banks chartered during the period that had not opened for business as of June 30, 1947.
CONTRACT SETTLEMENT
The functions of the Office of Contract Settlement were transferred to the
Treasury Department during the fiscal year 1947. That Office was established to
prescribe policies, principles, and procedures to govern the settlement of war contracts canceled for the convenience of the Government under the Contract Settlement Act of 1944 (58 Stat. 651; 41 U. S. C. 104), approved July 1,1944. .The Appeal
Board and the Contract Settlement Advisory Board also were established by
authority of this act. Shortly thereafter, by authority of the act of October 3,
1944 (58 Stat. 785; 50 U. S. C. 1651), the Office was placed within the Office of
War Mobilization and Reconversion. On December 12, 1946, Executive Order
9809 (exhibit 38) transferred to the Treasury Department: (a) The functions of
the Office of Contract Settlement, (b) the Appeal Board, and (c) the Contract
Settlement Advisory Board; and transferred to the Secretary of the Treasury the
functions of the Director of Contract Settlement and the functions of the Director
of War Mobilization and Reconversion with respect to the Office of Contract
Settlement. Subsequently, the functions of the Director of Contract Settlement
and the Office of Contract Settlement were transferred to the Secretary of the
Treasury and the Office of Contract Settlement was abolished by Reorganization
Plan No. I of 1947, effective as of July 1, 1947 (exhibit 39).
The Office of Contract Settlement provided by general regulation uniform
policies and procedures for the settlement of war contracts by the contracting
agencies. As required by the act, quarterly reports on the program are prepared
and submitted to the Congress. Of the 321,605 contracts canceled since the
beginning of war production, 99.6 percent have been settled as of June 30, 1947.
The settled terminations involved 97.4 percent of the $66 billion of canceled
commitments in all terminated contracts. The small number of terminations
remaining unsettled include some of the largest and most complex. The status
of the contract settlement program as of June 30, 1947, is set| forth in table 109.""
76
REPORT OF T H E SECRETARY OF T H E TREASURY
APPEAL
BOARD
T h e Appeal Board now represents the principal contract settlement activity.
T h e Board hears appeals from findings of contracting agencies upon claims under
t e r m i n a t e d war contracts or under imperfect war contracts where no formal cont r a c t exists. The appeals filed are a b o u t equally divided between claims under
t e r m i n a t e d contracts a n d claims under imperfect contracts.
T h e most significant development in connection with t h e Appeal Board has
been t h e sustained increase in t h e n u m b e r of appeals filed. E v e n t o w a r d t h e
end df t h e year cases were coming in a t t h e rate of approximately 3 a week. At the
beginning of t h e fiscal year only 76 cases h a d been filed. Of these, 41 were t h e n
undisposed of.. During the year 150 more cases were filed a n d 75 cases were
disposed of,, leaving 116 cases pending on J u n e 30, 1947. Of t h e cases disposed
of during t h e year, 51 were disposed of by decision on the merits.
I n a l l , 80 hearings were held. Of these, 33 were held in Washington and. 47 in
Philadelphia, New York, Pittsburgh, Indianapolis, Louisville, Chicago, Phoenix,
Los Angeles, a n d San Francisco.
T h e average a m o u n t claimed in t h e 150 appeals filed during t h e year was
$93,135.70. The average of t h e awards in the 51 cases which were disposed of
by decision on t h e merits during the year was $10,372.93. M a n y of t h e appeals
upon which these 51 awards were m a d e were filed in preceding fiscal years. T h e
average a m o u n t claimed in t h e 51 appeals so disposed of was $60,935.97.
BUREAU O F | C U S T O M S
T h e principal functions of t h e Bureau of Customs are to enter a n d clear vessels; supervise t h e discharge of cargo; ascertain the quantities of imported merchandise, appraise and classify such merchandise, a n d assess and collect t h e
duties thereon; control t h e customs warehousing of imports; patrol borders;
inspect international traffic by vessel, highway, railway, and air; review protests
against t h e p a y m e n t of duties; determine and certify for p a y m e n t t h e a m o u n t of
drawback due upon the exportation of articles produced from duty-paid or t a x paid imports; prevent smugghng, undervaluations, a n d frauds on t h e customs
revenue; apprehend violators of t h e customs laws; enforce t h e Antidumping Act;
and perform certain duties under t h e Foreign T r a d e Zones Act.
TOTAL REVENUE
COLLECTIONS
T h e total revenue collected by Customs in t h e fiscal year 1947 was $623,234,450,
an increase of 6 percent, as compared with $588,034,507 in 1946. These totals
include items collected for t h e account of others, such as certain internal revenue
taxes for t h e Bureau of I n t e r n a l Revenue and head taxes for t h e Immigration
Service. Therefore, t h e true measure of customs revenue m u s t be confined' to
collections from duties, fines, penalties, forfeitures, etc., which totaled $497,533,914.
On a comparable basis, t h e collections for 1947 showed an increase of 12.9
percent over t h e preceding year and were also greater t h a n any other year since
the passage of t h e Tariff Act of J u n e 17, 1930. T h e u p w a r d t r e n d in collections •
which prevailed throughout most of the fiscal year 1945 and all of 1946 continued
during t h e first seven months of the fiscal year 1947, when, in J a n u a r y , a monthly t
peak of $47,586,267 was reached. Thereafter, the monthly collections were in
reduced a m o u n t s until t h e low point of $35,181,207 was reached in J u n e . T h e
types of collections during the last two years are shown in table 15.
T h e bulk of customs collections is represented by duties voluntarily paid by
importers. Therefore, the increased collections which began in 1945 a n d continued through J a n u a r y 1947 indicate t h e arrival of goods which h a d long been
absent from t h e m a r k e t because of war conditions.
T h e significant changes in t h e types of imports which appreciably affected
revenues are as follows:
Sugar.—This basic food was imported during the war by t h e Commodity
Credit Corporation, and, under t h e provisions of Executive Order 9177, no duties
were paid. However, this procedure" was discontinued as of J a n u a r y 1, 1947,
a n d commercial importations were resumed a n d immediately provided substantial duties.
Unmanufactured wool.—Duties from this commoditj^ totaled $121,105,594,
which was t h e highest a m o u n t ever collected, except for the $150,145,069 received
in 1946.
REPORT OF THE SECRETARY OF THE TREASURY
77
Wood and lumber.—Duties from these products were adversely affected, as a
result of Presidential Proclamation 2708, effective October 25, 1946, which perm i t t e d t h e free importation of wood a n d lumber as a means of aiding in the
reconversion program.
Miscellaneous articles.—Substantial percentage increases in duties were attributable to such miscellaneous articles as glassware, cordage, musical instruments,
a n d linen table damask. I n addition thereto were vegetable oils, aluminum, a n d
lead, which h a d been a d m i t t e d d u t y free during the war for stock-pile purposes.
The significant changes noted in the origin of imports are as follows:
Europe.—Although t h e prewar levels were not reached in 1947, t h e revenue
from European imports was larger t h a n t h a t from any other major geographical
area. Revenue from Spanish and Portuguese goods, however, continued in 1947
t h e decline from.the wartime peaks in 1946, when m a n y other European countries
were unable t o reach t h e American m a r k e t . Moreover, in 1947, Switzerland
limited t h e export of watch movements, which affected customs receipts, and
t h e large imports of hops from Germany in 1946 were substantially reduced in
1947.
Revenue on imports from all t h e other European countries was substantially
greater t h a n in 1946. United Kingdom displaced Switzerland as t h e leading
European source of customs revenue; while France, Italy, Belgium, a n d Czechoslovakia followed Switzerland in t h e order named. I m p o r t s from the Scandinavian
a n d Balkan countries, although greater t h a n a year ago, remained of little importance as a source of revenue.
North America (Canada, Mexico, Cuba).—The importation of Cuban sugar by
commercial sources, subsequent to J a n u a r y 1, 1947 (previously noted), more
t h a n offset t h e decrease in revenue from Canadian, Mexican, and other N o r t h
American countries..
South America.—Reduced revenues were occasioned principally by smaller
importations of wool from Argentina a n d Uruguay.
Australia a n d New Zealand.—Importations of wool provided the greatest single
source of customs revenue from this area, a n d Australia a n d New Zealand wool
was practically t h e same in q u a n t i t y as in 1946.
Africa.—Duties on African imports were approximately t h e same as in 1946.
The Orient (China, India).—Although customs receipts from goods originating
in t h e Orient showed an increase in 1947, they were far below prewar levels.
Statistics on t h e value of commodities included in t h e tariff schedules, on
estimated duties a n d import taxes, a n d on t h e value of and duties on merchandise
from foreign countries are shown in tables 92 through 96.
Within t h e United States, t h e largest a m o u n t of revenue continued to be
collected in t h e New York District, which accounted for approximately 40 percent
of t h e total. T h e Massachusetts District was second with approximately 20 percent of t h e total, with wool imports constituting t h e backbone of receipts. Next
came t h e Philadelphia District, which accounted for nearly 5 percent of collections,
with sugar importations contributing substantially to the total receipts: This
commodity also accounted for increased revenue in other Atlantic and Gulf Coast
districts. Collections along t h e Mexican a n d Canadian borders showed decreases
compared with 1946, b u t t h e Pacific Coast more t h a n made up these losses.
Customs collections by districts are shown in table 9 1 .
MOVEMENT
OF P E R S O N S
BY V E S S E L S , T R A I N S ,
VEHICLES
AIRPLANES,
AND
AUTOMOTIVE
For the sixth consecutive year, automotive vehicles crossing the Canadian a n d
Mexican borders showed an increase. There w a s . a .decline in the n u m b e r of
passengers arriving by train. Slight declines were also noted in t h e n u m b e r of
incoming passengers on aircraft and seagoing vessels in 1947 compared with 1946.
Although international travel by aircraft and vessel increased in 1947, t h e totals
do not offset t h e large numbers of service personnel who cleared customs in 1946.
Tables 98 and 99 show the volume of traffic into t h e United States in 1946
and 1947.
DRAWBACK
TRANSACTIONS
Drawback of 99 percent of customs duties previously paid is allowed on t h e
export of merchandise manufactured from imported materials.
Drawback
allowed in 1947 a m o u n t e d to $10,715,495, an increase of 55 percent over 1946,
• and t h e most i m p o r t a n t items used in manufacturing t h e exported products
78
REPORT OF THE SECRETARY OF THE TREASURY
were sugar, wool, coal tar products, crude petroleum, unmanufactured tobacco,
and copper. Tables 100 and 101 show the drawback transactions in 1946 and 1947
and the principal commodities on which drawback was paid.
PROTESTS AND APPEALS
Despite the increased tempo of imports during the better part of the fiscal year
1947 the number of protests filed by importers against the rate or amount of duty
assessed or other action by the collector remained virtually the same as in 1946.
However, there was a 53 percent increase noted in the appeals for reappraisement
filed by importers who did not agree with the findings of the appraiser as to the
valuation of merchandise. The following table shows the number of protests and
appeals filed and acted on in 1946 and 1947.
Number of protests and appeals, fiscal years 1946 and 1947
Status
1946
1947
Percentage
increase or
decrease
(-)
Protests:
Filed with collectors by importers.
Allowed by collectors
.-.Denied by collectors and forwarded to customs court
Appeals for reappraisement filed with collectors
7,142
927
5,926
3,330
6,960
497
6,663
6,091
-2.5
-46.4
12.4
52.9
APPRAISEMENT OF MERCHANDISE
The large volume of merchandise imported during the first part of the fiscal
year reached its peak in November and December 1946, as a prelude to the
Christmas season, The normal procedure for sampling such merchandise is to
take one package in ten to the appraiser's stores for examination by the appraiser.
However, the usual complement of personnel assigned to the appraiser, particularly
in New York, was unable to handle expeditiously such merchandise. Furthermore, the truck strike in New York, during a portion of that time, added to the
congestion of merchandise on piers and other places. During this emergency,
fewer packages were examined than usual and this administrative procedure
enabled importers to secure their merchandise without unreasonable delay.
Importations of merchandise via mail resumed their prewar characteristics and
consisted principally of commercial transactions in contrast to 1946 when military
personnel overseas shipped packages which were generally free of duty under the
$50 exemption permitted by Public Law 790, approved December 5, 1942.
CUSTOMS INFORMATION EXCHANGE
The Customs Information Exchange, located in New York, N. Y., is a centra^
clearing house for information with respect to the classification and valuation
of merchandise by the Customs appraisers. The reports received and records
maintained are designed to. pro vide for uniformity of decision among the various
appraisers throughout the Customs Service. The work of the Customs Information Exchange showed a substantial increase over that of 1946, as shown in
the following table.
Activity
Appraisers' reports of value or classification received
Diflerences in classification reported
-Differences in value reported
<_
Re quests for foreign investigations
1946
1947
Number
23,029
1,660
2,909
415
Number
29,320
3,153
3,763
476
Percent
increase
29.4
14.7
REPORT OF THE SECRETARY OF THE TREASURY
79
LABORATORIES
Nine Customs laboratories are maintained in the United States, and their purpose is to test representative samples of sugar, wool, metals, and other merchandise to aid in determining the correct assessment of duties. During the
fiscal year 1947 there were 60,601 samples of merchandise tested, which was a
24 percent increase over the preceding year.
In addition to the regular assignment, certain laboratory work was undertaken
for the Bureau pf Federal Supply to test materials purchased for the Government
stock pile.
LAW ENFORCEMENT ACTIVITIES
The law enforcement activities of Customs consist primarily of seizure of merchandise which has been fraudulently declared or illegally brought into this country. These seizures also include, in general, the vessel, automobile, trunk, suit- •
case, or other means of transporting the contraband. Although the number of
seizures in 1947 was slightly lower than the preceding year, the value of the articles
seized was approximately $7,000,000 compared with $4,000,000 in 1946. Such
articles as cameras, furs, jewelry, and wearing apparel, which showed significant
increases in the value of seizures, are but a further reflection of the increased travel
in 1947. Tables 102 and 103 show the number and value of the principal types
of seizures.
Collections from fines, penalties, and forfeitures in 1947 were approximately
$951,686, which was an increase of $103,666 over the amount collected in 1946.
INVESTIGATIVE AND PATROL ACTIVITIES
The Customs Agency Service is the investigative arm of the Customs Service
and its principal functions are to detect commercial smuggling, as well as the
deliberate fraud of importers in such practices as false or erroneous invoicing, and
undervaluation of merchandise. Although these violations were fewer than in
1946, there were, nevertheless, many important recoveries. As an example, a
broker acting for a large manufacturer falsely valued certain essential oils, and,
in another case, molasses, imported to use as cattle feed, was sold in the United
States for human consumption.
. Another enforcement feature of the Customs Service involved the assignment
of inspection officers at piers, railroad terminals, airports, and highways to secure
declarations and inspect the baggage and vehicles of travelers, and also to examine
merchandise brought in by common carriers. Violations involving baggage
declarations continued to be the most numerous cause of investigation.
The third enforcement activity of Customs was the patrol activities at seaports
and also along the Mexican and Canadian borders. The port patrol officers (at
seaports) were engaged primarily in searching incoming ships and crew members
for contraband, particularly narcotics. Increased trade with the Near East and
the Orient resulted in a substantial increase in narcotic seizures at seaports during
1.947. Along the Mexican border the principal duty of patrol officers is to seize
smuggled merchandise. The majority of such seizures involve narcotics and, in
fact, the largest narcotics seizure in 1947 was at Calexico, Calif., which involved
677 ounces of smoking opium. Attempts to smuggle narcotics along the Mexican
border resulted in 508 seizures in 1947 compared with 398 in the previous year.
The Canadian border patrol had the same organization structure as the Mexican
border patrol. However, the type of work was essentially different inasmuch as
the smuggling of narcotics along the Canadian border is not. extensive enough to
present any serious threat to this country. Therefore, as an economy measure,
the Canadian border patrol was abolished as of June 28, 1947, and all permanent
personnel who desired to continue in the Customs Service were reassigned.
The Customs Service also enforces laws other than its own, such as the export
control licenses for the Department of Commerce; and the Customs personnel in
the course of their regular duties made 9,172 seizures for the Department of
Agriculture and apprehended 666 persons for the Immigration and Naturalization
Service. Table 104 summarizes the investigative and patrol activities during the
last two years.
80
REPORT OF T H E SECRETARY OF T H E TREASURY
'FOREIGN TRADE
ZONES
Foreign Trade Zone No. 1, in New York, discontinued operations a t four N o r t h
River Piers, used on a temporary basis during the war, and now occupies two
piers (Stapleton, S t a t e n Island). During 1947 Zone No. 1 enjoyed increased a n d
diversified activity b u t the revenue collected on merchandise entering Customs
territory from t h e zone, while substantially the same as a year ago, was much less
t h a n in t h e two preceding years when large amounts of distilled liquors were processed or stored in t h e zone prior to importation into Customs territory.
Foreign Trade Zone No. 2, in New Orleans, was authorized in July 1946 b u t
did not commence operations until M a y 1, 1947, because of scarcity of fencing
materials necessary to segregate t h e zone.
L E G A L P R O B L E M S AND
PROCEEDINGS
Certain questions involving t h e p a y m e n t of overtime, Sunday, and- holiday
services to Customs employees, under an act of 1911, were not resolved by t h e
Supreme Court decision of United States Y. Howard C. Myers (320 U. S. 561; 321
U. S. 750). Therefore, legislation was submitted to t h e Eightieth Congress (first
session), to clarify the applicable law, b u t no action was t a k e n by either House.
T h e Customs Service has had trouble in recent years in ascertaining t h e value
of foreign currencies of m a n y lands where dual or multiple exchange ratps are
involved. This situation has resulted in t h e suspension of appraisements and
liquidations of entries in the field with t h e result t h a t in t h e Port of New York
. alone there is a backlog of some fifty thousand cases. Administrative action to
clarify this m a t t e r a few years ago resulted in a test case, Barr v. United States
(1945) (324 U. S. 83), which was decided against Customs. Therefore, legislation
was s u b m i t t e d to the Eightieth Congress (first session) seeking an a m e n d m e n t to
section 522 of t h e Tariff Act of 1930, which would grant authority to t h e Secretary
of t h e Treasury to determine, for duty-assessment purposes, t h e value of foreign
currency whore dual or multiple exchange rates are involved. This legislation
passed t h e House b u t was not finally acted upon by the Senate.
This was t h e first year of operation of t h e Federal Tort Claims Act of 1946,
which changed t h e concept t h a t t h e Federal Government is not liable for t h e
negligent or tortious acts of its officers a n d employees, while acting within t h e
scope of their emp Ioy nient. In effect, this act makes t h e Government liable in
t h e same m a n n e r as a private individual under t h e same circumstances. The
n u m b e r of claims received was 12, involving $2,643.90, a n d disposition was made
of 3, with p a y m e n t s totaling $91.50.
MISCELLANEOUS
Division of Training.—The Division of Training, which had been a t a low ebb
during t h e war years, was abolished in 1947.
Changes in ports and stations.—The station a t Caswell, Maine, was discontinued.
There was a station established a t D a a q u a n , Quebec. No changes were made in
any of t h e Customs ports of e n t r y .
Cost of administration.—During t h e fiscal year 1947, Customs incurred expenses
of $33,328,255 for collecting t h e revenue and for printing. This figure does not
include salaries paid t o Customs personnel for overtime, a n d other services
authorized by law, for which reimbursement is made to t h e appropriation by t h e
parties in interest.
The expenses for 1947 exceeded those for 1946 by $3,636,412, t h e bulk of which
was a t t r i b u t a b l e t o salary increases authorized by t h e P a y Act of 1946.. The
cost of collecting $100 of revenue was $5.35 compared with $5.05 in 1946.
A s u m m a r y of t h e collections and expenditures during 1947 will be found in
table 105.
REPORT OF T H E SECRETARY OF T H E TREASURY
81
BUREAU OF ENGRAVING AND PRINTING
The Bureau of Engraving and Printing designs, engraves, and prints currency,
bonds, certificates, stamps, and various other official documents and forms.
Deliveries of finished work during the fiscal year 1947 amounted to 559,452,273
sheets, a decrease of 124,917,089 sheets, or 18.3 percent less than the quantity
delivered during the previous fiscal year.
A comparative statement of deliveries of finished work in the fiscal years 1946
and 1947 follows:
Sheets
Face value,
1947
Class
1946
Currency:
United States notes
Silver certificates
Federal Reserve notes.
Total...
Bonds, notes, bills, certificates, and debentures:
Bonds:
Panama Canal
_.
Postal savings.
•
.•
Treasury
^
'.
United States savings
. United States war savings....
Adjusted service
.
Depositary. __
:
Excess profits tax refund
Consolidated Federal farm loan for the Federal
land banks.
Consolidated Federal home loan banks
Insular, Puerto Rican
Notes:
Treasury. __
Consolidated Federal home loan banks
Special United States
Treasury bills
Certificates:
Indebtedness
Cuban silver
..
Philipphie treasury..
Military.,
Interim transfer certificates for postal savings bonds.
Debentures:
Consolidated collateral trust for the Federal
intermediate credit banks
Consolidated for Federal home loan banks
National Housing Agency, Federal Housing
Administration:
Housing insurance fund
Mutual mortgage insurance fund
War housing insurance fund.
Specimens:
Bonds
Notes
J
Certificates
:
..
Debentures
.
Proof sheets, military certificates
..Total.
1947
2,610,000
77, 210,000
30, 579, 000
3, 470,000
85, 265, 000
24, 020, 000
$178, 860,000
1, 505, 760,000
. 3, 449, 040, 000
110,399,000
112, 755, 000
5,133, 660, 000
1,000
550
1, 991, 384
87, 903,000
60, 640, 000
50
1,365
173, 459
43, 634, 000
1, 066, 600
1,122, 802, 000
8, 652,170, 000
12, 600
50
206, 000, 000
60, 000
20,445
9,970
415
90, 000
1, 450, 000,000
248, 000, 000
4,175, 000, 000
94, 366, 000, 000
600
35,000
241,300
• 76
88, 048
23, 750
.
509,875
1,102, 533
10, 575, 200
367, 026
129,413,000,000
403, 200
2, 988, 000
104, 900, 000
785,131, 200
45, 000
510, 000, 000
1,000
17, 000
3,850
275
600
5,375
80
15
6
7
163,140, 473
118
31
29
2
16
47, 735, 725 241,032,119,800
82
REPORT OF THE SECRETARY OF THE TREASURY
Sheets
N u m b e r of
stamps-, etc.,
1947
Class
Stamps:
Customs
.;
I n t e r n a l revenue
A d h e s i v e postal note
D i s t r i c t of C o l u m b i a beverage tax p a i d . . ^ . .
Federal migratory-bii'd h u n t i n g . .
1
H o u s e trailer p e r m i t
Philippine revenue
P u e r t o Rican r e v e n u e
Virgin Islands r e v e n u e . . - . .
Specimens, internal r e v e n u e
Postage:
United States.
U n i t e d States surcharged " C a n a l Z o n e "
Canal Zone
Philippine
Specimens, U n i t e d States
U n i t e d States w a r savings
: 85,000
, 268, 037
712, 807
127, 318
27, 921
128, 750
163, 419, 673
349, 629
213, 735
36, 500
34
3, 650, 000
20,053,382,329
34, 952, 900
42, 747, 000
4, 088, 000
6,100
1, 377, 316
100
94
107, 860, 800
10,000
1,015
105,000
713, 505
85
, 932, 807
207, 797, 448
2,100
199,450
294,630
420
123, 383
19, 747,034,410
210,000
11, 475,000
8, 912, 600
3,381
12,158,800
367, 817, 570
373, 943,162
40,026, 491, 236
345.696
589,065
14,675
006, 855
710, 282
104
1, 503
11,000,295
707
1,340,904
6, 522,807
130,125
591,070
2,066,838
40
103
55,008,325
1,507
701, 590
22, 225, 724
260, 250
2, 955, 350
"7,149,017
216
Total-
41, 566, 669
21,642, 889
88,301,978
Siaraese currency .
Proof sheets-.-
1, 445, 645
5
3,376, 497
228,992,000
1, 445,650
3,375, 497
228, 992,000
684,369,362
569,452, 273
TotalMisceUaneous:
Checks
--.
Warrants
Commissions
Certificates.
..Drafts
Transportation requests..
O t h e r miscellaneous
Specimens
'..
B l a n k paper
--
Total
G r a n d total-.
66, 860
1,189, 950
100
109
198, 588,081
Dies were engraved for new issues of postage stamps as follows:
Issue
S m i t h s o n i a n I n s t i t u t i o n C o m m e m o r a t i v e , Series 1946Iowa Statehood C o m r a e r a o r a t i v e , Series 1946.
....•
..
General S t e p h e n W a t t s K e a r n e y E x p e d i t i o n C o m m e m o r a t i v e , Series 1946...
Air M a i l , Series 1946
Air M a i l , Series 1947
.
"
...
C e n t e n a r y of U . S. Postage S t a m p s (1847-1947), Souvenir Sheet, Series 1947.
C e n t e n a r y of U . S. Postage S t a m p s (1847-1947) C o m r a e r a o r a t i v e , Series 1947
T h o r a a s A. E d i s o n C e n t e n n i a l Coraraeraorative, Series 1947
Joseph Pulitzer C e n t e n n i a l Coraraeraorative, Series 1947
.
" T h e D o c t o r " Coraraeraorative, Series 1947
U t a h C e n t e n n i a l Coraraeraorative, Series 1947
."_
Denomination
(cents) .
3
3
3
5
6,15, 25
5,10
3
3
3
3
3
' New dies and plates were preparedfor various issues of Treasury bonds. United
States savings bonds, revenue stamps for tobacco, snuff, and cigars, military
certificates, migratory-bird hunting stamps, and miscellaneous certificates and
commissions for the War, Navy, and other departments.
Orders were received from the War Department for the production of military
certificates for use by the armed forces within military establishments overseas.
A contract was negotiated with a commercial firm for printing the stock by the
offset 'method. Subsequently, the work was transferred to the Bureau for numbering and final processing. The certificates comprised three sizes; the small
size for the 5^, 10^, 25^, and 50^ denominations; the intermediate size $1; and
the large size $5 and $10.
REPORT OF THE SECRETARY OF THE TREASURT
83
In November 1946, a special committee appointed by the Secretary of the
Treasury began the audit and destruction by incineration of the surplus stock of
Allied Military Schilling currency remaining on hand from orders placed by the
War Department. This project was completed in January 1947.
The production of United States savings bonds of Series E, F, and G amounted
to 43,634,000 bonds, with a face value of $8,652,170,000, a decrease of 70.7 percent compared with the quantity delivered during the previous year.
The number of employees on the pay roll at the beginning of the fiscal year was
6,378, but by the end of the year this figure had dropped to 5,909.
Three employees of the Bureau were detailed to participate in the International
Philatelic Exhibition held in New York City in May 1947, in connection with
the centennial celebration of the issuance of the first United States postage
stamps. A hand-operated printing press was transferred to the exhibition for
the use of a plate printer and his assistant in demonstrating the plate printing of
stamps. Ili addition, a member of the engraving staff gave demonstrations of
his art.
Expenditures amounted to $20,099,080.31, a decrease of $604,415.14 or 2.9
percent as compared with the previous year. The following statement shows the
appropriations, reimbursements, and expenditures for the fiscal years 1946 and
1947.
Appropriations:
Salaries and expenses
Printing and binding
Reimbm'seraents to appropriations frora
bm-eaus for work corapleted :i
Salaries and expenses
Printing and binding
other
^
Total
I
•.
-
Unexpended balance
—
-
1947
$11,435,700.00
5, 500.00
$12, 689, 400.00
5, 500.00
2 9, 761, 713. 63
4, 375. 00
.
Total....
Expenditures:
Salaries and expenses
Printing and binding
1946
Increase or decrease (—)
$1, 253, 700. 00
7, 450, 855. 42
5, 500. 00
-2, 310, 858.21
1,125.00
2 21, 207, 288. 63 20,151, 256. 42
-1, 056, 033. 21
2 20, 694, 617. 52 20,088, 421. 25
8, 877. 93
10, 659. 06
-606,196. 27
1, 781.13
2 20, 703, 495. 45 20,099, 080. 31
-604, 415.14
503, 793.18
52,176.11
-451, 618. 07
1 Additional araounts of $10,995.96 for 1946 and $50,065.59 for 1947 were received-frora eraployees for lost
locker keys, badges, etc., for refunds of terminal leave corapensation, frora reirabm'seraents for jury service,
and to correct discrepancies in paper accounts of Bureau; frorii fii-ras for empty drums returned by Bureau;
and from refunds by eraployees and firms and reimburseraents for work done for various agencies. These
araounts were deposited in the appropriate accounts.
2 Revised to take into account a ref und of $6,778.18, in April 1947, by the State Printer, Bureau of Printing,
Sacraraento, Calif., which represented the unused portion of $11,408.00 in connection with the processing of
railitary yen currency, on contract with this Bureau, for the War Departraent. The amount of $11,408
covered the estimated cost of restoration of Governor's Hall on the State Fan* Grounds at Sacramento,
used for the above-described project. Since this amount had been charged to the War Departraent, that
Departraent was reimbursed with the refund of $6,778.18.
BUREAU OF FEDERAL SUPPLY
The Bureau of Federal Supply, designated the Procurement Division prior to
January 1, 1947, determines the policies and methods of procurement, warehousing,
and distribution of supplies, materials, equipment, and services for Federal establishments; procures and distributes supplies, materials, equipment, and services
for Federal establishments; stores and inspects supplies, materials, and equip-,
ment; and prepares purchasing standards, such as Federal Specifications, standard
forms of contract, and a catalog system. The Bureau of Federal Supply, at the
direction of the Army and Navy Munitions Board, purchases and inspects strategic
and critical materials for inclusion in the national stockpile. During 1947, in
addition to its purchases for the United Nations Relief and Rehabilitation Administration, the Bureau made special purchases of coal and other commodities for
certain European countries, and accomplished partial liquidation of its programs
in connection with lend-lease. United Nations Relief and Rehabilitation Administration, and foreign war relief of the American Red Cross.
764788—48
7
84
REPORT OF THE SECRETARY OF THE TREASURY
PROCUREMENT
Purchasing and purchasing methods.—Specialists in procurement and marketing
of the Bureau of Federal Supply's purchasing staff enter into contracts for the
purchase of supplies, materiials, and equipment for Federal agencies in both the
departmental and field services, and also perform the same services for special
programs. Liaison is maintained with other Government agencies and, in the
case of special programs, with officials of foreign nations.
Contracting and purchasing by the Bureau of Federal Supply are generally
effected in accordance with section 3709 of the Revised Statutes, as amended,
requiring advertising for bids, public bid openings, and award of contracts to the
lowest responsible bidders. During the fiscal year considerable purchasing was
accomplished by negotiation as authorized by the First War Powers Act, title II.
Two types of contracts are used: (1) inde^nite quantity (sometimes called openend or term) contracts and (2) contracts specifying definite quantities of commodities.
Indefinite quantity contracts have been placed for approximately 40,000 items
listed on the Federal Supply Schedule, and Federal agencies may secure what
they require during the life of a contract simply by placing purchase orders direct
with the scheduled contractors.
Definite quantity contracts are generally made for items not covered by the
Federal Supply Schedule or not carried in the. Bureau's warehouse stock. Such
contracts are financed through the general supply,fund, reimbursement being
made by the requisitioning agency. For special program purchases all contracts
are made on a definite quantity basis.
The following table shows the value of purchases made by the Bureau of Federal
Supply during the fiscal years 1946 and 1947.
Object
1946
1847
Regular activities 1
Lend-lease
-..
United Nations Relief and Rehabilitation AdministrationAmerican Red Cross (foreign war relief)
_Coal program for certain foreign countries.
$29,971,761
258,183,616
216,260,218
768,480
$46,173,933
2 42,676,468
3162, 220,316
4 2, 871
28, 504, 859
Total purchases--Purchases by other agencies from Federal Supply Schedule..
504,184,076
94,912,678
5 279,578,446
84,000,000
> Purchase of supplies procured for other agencies or for stock issued to other agencies.
2 Cancellation of contracts reduced obligations $228,217,211.
3 Cancellation of contracts reduced obligations $25^000,848.
* Cancellation of contracts reduced obligations $101,892.
* Does not include purchases of strategic and critical materials which are shown elsewhere in this report.
The preceding table reflects the sharp decline in the special programs in connection with lend-lease. United Nations Relief and Rehabilitation Administration,
and American Red Cross foreign war relief. However, the increase of approximately 54 percent in regular activities shows the expanding program of the Bureau
of Federal Supply which, eventually, is to care for the Nation-wide requirements
of all Federal agencies as to supplies, materials, and equipment.
Government requirements.—The Government Requirements Division coordinates
the various functions of the Bureau of Federal Supply with other Federal agencies.
Surveys and studies made by this Division are the bases upon which are established
policies and methods for accomphshing the procurement of supplies, materials,
and equipment in a more economical and efficient manner.
Stores operations.—The stores operations are conducted on a self-supporting,
reimbursable basis, and therefore the principles of operation are substantially
like those of a private enterprise, except that the objective is to recover costs as
distinguished from the profit motive of commercial ventures. During the fiscal
year 1947, the Bureau of Federal Supply operated nine supply centers, and two
branch supply centers in the field, and a central warehouse in Washington, D. C.
The field locations are at Boston, New York, Cleveland, Chicago, Atlanta, Fort
Worth, iKansas City, Denver, San Francisco, Los Angeles, and Seattle. These
field units together with the central facilities in Washington, D. C , constitute
the Bureau's national system for the procurement, storage, and issue of supplies
in common use by Federal agencies and the Government of the District of
Columbia.
REPORT OF THE SECRETARY OF THE TREASURY
85
These operations are financed by the general supply fund (see page 86) from
which all expenditures are made and to which all collections are credited. Expeijses are recovered by service charges representing estimated handling costs.
When expenses for handling are less than estimated, surpluses remaining in the
general supply fund after a yearly audit by the General Accounting Office are
credited to miscellaneous receipts of the Treasury.
During the fiscal year 1947, the total value of warehouse stock issues was
approximately $22,930,000, an increase of $7,092,000 over the issues for 1946.
This increase was brought about by extension of services to Federal agencies not
fully participating previously in the Bureau's program and also by higher prices.
Of major importance were the arrangements made with the Veterans' Administration in December 1946 whereby all veterans' facilities were instructed to purchase
administrative supplies and equipment from the Bureau of Federal Supply.
Of the total issues for 1947, nearly 13 percent were supplies acquired from surplus
property disposal agencies.
Continuing the policy of utilizing Government-owned space, buildings erected
or utilized for wartime purposes were used for housing the Bureau's field warehouse facilities at New York, Cleveland, Chicago, Atlanta, Denver, Los Angeles,
and Seattle.
Inspection service.—The Bureau of Federal Supply maintains an inspection
service in the District of Columbia for inspection and testing of incoming warehouse stock, investigation of complaints of receipt of apparently inferior materials
delivered on Bureau of Federal Supply contracts, and the coordination of routine
inspection and testing services in the Federal Government. As an. additional,
service, a sample room is maintained where standard samples of articles on purchase under Federal Supply contracts are displayed for examination by representatives of Government agencies.
Utility services.—The Public Utilities Division of the Bureau of Federal Supply
makes technical surveys and investigations both in Washington and the field to
secure for all Federal agencies efficient service and equitable rates for all public
utility services. The surveys and analyses cover electric, gas, telephone, teletypewriter, telegraph, and cable services. When charges are found to be out of
line, the Division negotiates with public utility companies and regulatory commissions and boards for appropriate price adjustments and, in some cases, for
completely new contracts. Formal representation is made before appropriate
regulatory commissions where necessary.
As a result of the work done during the year, and without consideration of
savings resulting from operations of previous years, or those which, although
achieved in 1947, will accrue in future years, the Government saved over $740,000.
Interdepartmental Trafiic Committee.—Constant liaison is maintained with all
agencies, including the military establishments, through the Interdepartmental
Traffic Committee which was initiated by the Bureau of Federal Supply for the
purpose of conducting continuing studies of transportation rates and services as
they affect the shipment of property on which charges are paid and borne by the
United States. One such study has resulted in eliminating the issue of approximately 100,000 Government bills'of lading annually, with a saving of at least
$400,000 per year and without compensating loss in other respects.
Printing.—Through its Printing Section, the Bureau placed orders with
Government and commercial iprinting sources^totaling $5,634,597.58 in the fiscal
year 1947.
Standardization.—During the fiscal year, the standards activities of the Bureau
of Federal Supply jwere further centralized in one organization through the
transfer of inspection and testing services frorn the Stores Branch to the Standards
Branch, which now consists of four divisions: Specifications, Catalog, Inspection,
and Research and Technical Services. The Standards Branch, responsible, for
the standardization of materials, equipment, and supplies|used by Federal departments and establishments, is charged specifically with the preparation of Federal
and Bureau of Federal Supply specifications; with the identification, classification,
and cataloging of items of supply; and with the inspection and testing of supplies
purchased by the Bureau of Federal Supply or by other agencies under the Federal
Supply Schedule.
Through the Standards Branch the Bureau of Federal Supply has provided,
during the year, the central staff of the U. S. Standard Commodity Catalog Board
for the development of detailed operating plans for the proposed unified Federal
Catalog System, designed to replace as many as 17 different systems now in use,
86
REPORT OF THE SECRETARY OF THE TREASURY
including the Federal Standard Stock Catalog, the responsibility for which rests
with the JBureau of Federal Supply.
Blind-made products.—The Bureau bf Federal Supply is the coordinating
agency which facilitates the placing of all Government orders with the 52 nonprofit workshops for the blind which operate under the Wagner-O'Day Act of
1938. Sales to the Government of goods produced by the blind during the fiscal
year 1947 represented 751 transactions in the amount of $460,802.72 as compared
with $3,143,672.32 during.the fiscal year 1946. The sharp dechne is attributed
primarily to the use of war surplus property by consuming agencies.
Forfeited, seized, and abandoned property.—There was reported to the Bureau .
of Federal Supply, for transfer to other Government agencies or eleemosynary
institutions, forfeited, seized, and abandoned property totaling $1,356,528.52 in
appraised valuation.
FISCAL OPERATIONS
During the fiscal year 1947 the Fiscal Branch maintained the accounts, audited
the vouchers for contract payments, and prepared appropriate financial and statistical reports on three large programs, namely, the general supply fund, lendlease, and United Nations Relief and Rehabilitation Administration, and several
smaller programs. In addition, it liquidated the accounts payable and collected
the accounts receivable on the working capital fund which was transferred to the
Government Printing Office as of July 1, 1946. It also established 7,401 claims
for a total of $5,488,493, and made collections on them in the amount of $4,011,932.
Net cash discounts taken by the Bureau of Federal Supply during the fiscal
year 1947 amounted to $622,454 as follows: Lend-lease, $70,699; United Nations
Relief and Rehabilitation Administration, $328,126; general supply fund, $223,616;
and strategic and critical materials, $13.
General supply fund.—This is a revolving fund established pursuant to the act
of February 27, 1929 (45 Stat. 1341), as amended, and it is available to finance
purchases by the Bureau of Federal Supply of stock, consolidated supplies, and
services.
A statement of the assets and liabilities of the general supply fund as of June
30, 1947, follows:
Assets
Current assets:
Cash
-Accounts receivable
Postage Inventories (at cost)
Total
.'
Fixed assets:
Equipraent
Total
Amount
$2,698,298.04
5, 238, 967. 39
4, 467.83
9, 358, 468.38
17, 200, 201.64
2.73, 619. 25
273, 619. 25
Liabilities and capital
Current liabilities:
Accounts payable•Unearned incorae
17, 473, 820.89
$7, 950,136. 45
964, 918.10
Total
Capital and surplus:
Capital
Donated capital
Surplus. L
Total
Reserve for contingencies
Total assets
Araount
Total liabilities and capital
8,916, 064. 55
-.
8, 020,196. 07
47,104. 96
21, 456.13
8,088, 756.16
470, 010.18
17, 473,820.89
Lend-lease.—Funds were allocated to the Bureau of Federal Supply under the
so-called Lend-Lease Act of March 11, 1941 (55 Stat. 31), for the purpose of procuring supplies and equipment for countries whose defense was deemed vital to
the defense of the United States. (See also page 62.) The following table shows
the status of funds under this program as of June 30, 1947.
Statu- of lend-lease funds as of J u n e SO, 1947
Appropriation
allocations
R e g u ar lend-lease accounts
Obligations
incurred
Expenditures
(voucher a u d i t e d
basis)
Unliquidated
obligations
Unobligated
allocations
Unexpended
balance
fel
A l l o t m e n t s to T r e a s u r y , defense aid:
O r d n a n c e a n d o r d n a n c e stores, 1941-46.
-Miscellaneous m O i t a r y e q u i p m e n t , 1941-46
A l l o t m e n t s to T r e a s u r y , B u r e a u of F e d e r a l S u p p l y , defense aid:
Aircraft a n d aeronautical m a t e r i a l , 1941-46
T a n k s a n d other vehicles, 1941-46
---.
Vessels a n d o t h e r watercraft, 1941-46
Facilities a n d e q u i p m e n t , 1941-46...
A g r i c u l t u r a l , i n d u s t r i a l , a n d other commodities, 1941-46 i
Services a n d expenses, 1941-46 i
-.A d m i n i s t r a t i v e expenses, 1941-46 ^
.
Administrative expenses, liquidation lend-lease program, 1941-47
Total-
-
-
$47,420.08
3,458, 836.01
$47,417.41
3, 454, 742. 59
$47, 417.41
3,403,876.40
$60,866.19
$2.* 67
4, 093. 42
$2.67
54, 959. 61
5, 217,485. 76
134, 092, 771. 21
1, 330, 392.40
123, 688,022. 32
,763,645,716.65
64, 223, 851.12
8, 215,424. 00
3, 211, 000.00
6, 216,880.06
130,981,203.71
1,323, 660. 67
120,945,785.94
4, 663, 629, 648. 96
62, 243, 877. 20
8, 203,172.82
3, 006, 686. 28
5,216,209.44
126,126, 771.19
1,314,031.43
115, 889, 696. 25
4, 595, 283,447. 67
61, 203,402. 43
8,167, 999. 40
2, 837,869. 93
670. 62
5,864,432. 62
9, 629. 24
5,056,089. 69
68, 246, 201. 28
1,040, 474. 77
35,173. 42
168, 816. 35
606. .70
3, 111, 667. 50
6, 731. 73
2, 742, 236. 38
100,116, 067. 60
1,979,973.92
12, 261.18
204, 313. 72
1, 276. 32
8,966, 000. 02
16, 360. 97
7, 798, 326. 07
168, 362, 268. 88
3,020, 448. 69
47, 424. 60
373,130. 07
6,107,130, 919. 45
4, 998, 963, 075. 63
4, 918, 490, 721. 55
80, 462,354. 08
108,177, 843. 82
188,640,197.90
i P u r s u a n t to a u t h o r i z a t i o n b y t h e ofl&ce of L e n d - L e a s e A d m i n i s t r a t i o n , a d m i n i s t r a t i v e expenses i n c u r r e d s u b s e q u e n t t o M a r . 11, 1943, in a m o u n t s of $996,023 a n d $14,662,286.86
h a v e b e e n charged to a p p r o p r i a t i o n s for "Services a n d e x p e n s e s " a n d " A g r i c u l t u r a l , i n d u s t r i a l , a n d other c o m m o d i t i e s " , respectively. P r i o r to M a r . 11,1943, a d m i n i s t r a t i v e expenses
w e r e c h a r g e d to t h e a p p r o p r i a t i o n " A d m i n i s t r a t i v e expenses."
o
o
^
•
w
Ui
o
>
o
w
Ul
d
00
88
REI>ORT OF THE SECRETARY OF THE TREASURY
United Nations Relief and Rehahilitation Administration.—The act of March 28,
1944 (58 Stat. 122), authorized participation of the United States in the United
Nations Relief and Rehabilitation Administration. Funds were allocated to the
Bureau of Federal Supply for the acquisition of materials necessary for agricultural
and industrial relief and rehabilitation of countries devastated by the war. Purchases of supplies and equipment amounting to approximately $486,000,000, including accessorial and other costs, have been made by the Bureau of Federal
Supply thus far in the implementation of this program.
Status of funds under the United Nations relief and rehabilitation program as of
June SO, 1947
Allocations
Description
C l o t h i n g , Textiles, a n d F o o t w e a r D i v i s i o n . . . .
Food Division
Agricultural R e h a b i l i t a t i o n D i v i s i o n . . .
Industrial Rehabilitation Division
M e d i c a l a n d S a n i t a t i o n Supplies D i v i s i o n
A d m i n i s t r a t i v e expenses
F r e i g h t a n d accessorial e x p e n s e s . Subtotal--.
Unallotted—
...
- -'
Total
..^...
Expenditures
(vouchers a u d i t e d
basis)
$112,051, 680.71
124,908.00
98,330, 697. 87
188, 657, 316.38
60, 676,477. 64
7, 248,465. 65
22,106,122. 70
$111,811,373.41
124,908.00
97,678,594. 83
188, 602, 618. 96
60,676,327.49
5,491,582. 87
21,774,427.35
• $101,845,440.43
124,908.00
81,069,165. 60
171,735,863.82
56,243,361.64
6,303,052.00
18,479,371.74
489,196,668.95
204,052. 05
486,159,832.91
433,791,163.23
489,399,721.00
486,169, 832.91
433, 791,163. 23
Unliquidated
obhgations
Description
Obligations
Unobligated
allocations .
Unexpended
balance
C l o t h i n g , Textiles, a n d F o o t w e a r D i v i s i o n . .
Food Division.
Agricultural R e h a b i l i t a t i o n D i v i s i o n
Industrial Rehabilitation Division .
M e d i c a l a n d S a n i t a t i o n Supplies D i v i s i o n .
A d m i n i s t r a t i v e expenses .
F r e i g h t a n d accessorial expenses __'
$9,965,932.98
$240,307.30
$10,206,240.28
16, 619,429. 23
16,866, 766.14
6,432,965. 86
188,530. 87
3,295,055.61
662,103.04
64,697.42
160.15
1,756,882. 78
331,695.35
17,271,632. 27
16,921,462.56
5,433,116. 00
1,946,413.65
3, 626,750. 96
Subtotal
Unallotted-
52,368,669.68
3,035,836. 04
204,052. 05
65,404, 506.72
204,052.05
52,368,669.68
3, 239,888.09
56,608, 667.77
Total.-
'-
REPORT OF THE SECRETARY OF THE TREASURY
89
FISCAL SERVICE
The Fiscal Service of the Treasury Department is a statutory organization,
created by the President's Reorganization Plan No. I l l , dated April 2, 1940,
under the provisions of the Reorganization Act of 1939, and became effective
June 30, 1940, by Joint Resolution of Congress approved June 4, 1940. At the
head of the Fiscal Service is the Fiscal Assistant Secretary. The Fiscal Service is
composed of four organizational units, as follows: (1) The Office of the Fiscal
Assistant Secretary, (2) the Bureau of Accounts, (3) the Bureau of the Public
Debt, and (4) the Office of the Treasurer of the United States. The work of the
Fiscal Service is largely operational in character, being concerned with the. transaction of the day-to-day business of the Treasury Department in the fiscal field.
As the titles of the several offices and bureaus imply, this work has to do with the .
Treasury's financing, accounting, and disbursing; public debt operations; andthe
receipt, custody, and distribution of the public funds.
ORGANIZATION
Ofiiice of the Fiscal Assistant Secretary.—The Fiscal Assistant Secretary exercises
general supervision over the three bureaus constituting the Fiscal Service, and
advises the Secretary in connection with Treasury financing operations and the
financing of Government corporations. In addition, he has a small staff which
performs these principal functions: (a) Forecasting the cash position of the
Treasury, (b) maintaining the daily cash balances with the various Federal Reserve Banks, (c) coordinating surveys of the several constituent units in the
interest of economy and efficiency, and (d) handling foreign exchange transactions.
Bureau of Accounts.—The Bureau of Accounts, under the Commissioner of
Accounts, is responsible for a variety of fiscal functions and administrative
matters. These include (a) maintaining the official receipt and appropriation
accounts of the Government; (b) preparing annually the Combined Statement of
Receipts, Expenditures, and Balances of the United States Government; (c) jDerforming the disbursing function for all executive departments and agencies,
except the military establishments, the postal service, and Uhited States marshals; (d) performing general supervision, under the direction of the FiscaL Assistant Secretary, over the accounting functions and activities of all the bureaus,
divisions, and offices of the Treasury; (e) developing improved financial reporting
systems for the Government as a whole, under the provisions of Executive Order
8512, approved August 13, 1940, as amended; (/) supervising the administration
of the Federal depositary system; (g) administering the Government's self-insurance fund under the Government Losses in Shipment Act; (h) performing the
administrative work in connection with the investment of trust funds.by the
Secretary of the Treasury; and (2) performing, for the Secretary, the administrative work in the fixing of underwriting limitations of surety companies authorized
to do business with the United States. Other functions of a miscellaneous character include the annual appraisal of the assets.and liabilities of the Commodity
Credit Corporation, the liquidation of the fiscal affairs of the Lend-Lease Administration and a number of other war agencies, and certain administrative duties
such as relate to the granting of authority to disbursing officers to carry cash at
personal risk and waiving delinquencies in the rendition of disbursing officers'
accounts.
Bureau of the Puhlic Debt.—The Bureau of the Public Debt, under the Commissioner of the Public Debt, exercises general supervision over public debt operations. It (a) prepares offering circulars and instructions relating to each offering
of public debt securities; (b) directs the handling of subscriptions and making of
allotments; (c) prepares regulations governing public debt securities; (d) issues
public debt securities and conducts or directs all transactions in the security
issues of the United States, and in those of the insular governments and of the
Government-owned corporations for which the Treasury acts as agent; (e) supplies issuing agents with securities and maintains reserve stocks; (/) maintains
90
REPORT OF THE SECRETARY GF THE TREASURY
individual accounts with owners of registered securities and pays interest thereon
by check; (g) supervises the activities relating to public debt matters of fiscal
agents and agencies authorized to issue and pay savings bonds and armed forces
leave bonds; (h) handles claims on account of lost, stolen, destroyed, mutilated,
or defaced securities; (i) procures and supervises the manufacture of distinctive
paper for printing securities and paper currency and maintains reserve stocks of
such paper; (j) determines the requirements and orders the production of securities and paper currency; (k) audits securities and retired United States paper
currency, and supervises the destruction of the currency and certain securities;
(I) certifies to the Comptroller General the account of the Treasurer of the United
States covering securities and coupons for which payment has been made; (m)
maintains general accounts covering public debt issues; (n) maintains control
accounts over currency and distinctive paper in process of printing at the Bureau
of Engraving and Printing; (o) maintains administrative accounts pf all debt
transactions conducted by the Bureau of the Public Debt, Federal Reserve Banks,
Treasurer of the United States, and other official agencies; (p) maintains records
of securities issued; (q) maintains files of retired securities; (r) compiles the
Circulation Statement of United States Money; and (s) examines and counts
mutilated and imperfect work resulting from operations of the Bureau of Engraving and Printing and supervises its destruction.
Ofiice of the Treasurer of the United States.—The Treasurer of the United States
is the oflacial custodian of the public funds. All public moneys are required to be
deposited to the credit of his account in Federal Reserve Banks and other designated Government depositaries. He renders a monthly account of all receipts
and disbursements to the Comptroller General for audit and settlement. The
Office of the Treasurer (a) maintains the accounts of the sales and redemptions of
public debt securities and the accounts relating to the assets and liabilities of the
Treasurer's general account, a separate account being maintained for the various
classifications of receipts and expenditures and with each Federal Reserve Bank
and general depositary; (b) maintains approximately 11,000 checking accounts of
Government disbursing officers, corporations, and agencies, and advances funds
to the officers for credit in their disbursing accounts as authorized by accountable
warrants; (c) maintains the accounts for the issue and redemption of United
States paper currency, and for the redemption of Federal Reserve notes. Federal
Reserve Bank notes, and national bank notes, and directs the shipment of currency
and coin between the United States Mints, Federal Reserve Banks, etc.; (d) examines and redeems public debt securities presented for redemption either direct
to the Treasurer or through the various Federal Reserve Banks; (e) acts as special
agent for the payment of the principal of and interest on the obligations of Government corporations and agencies and maintains the accounts to show such payments; (/) examines and redeems paper currency; (g) maintains a Cash Division
in the Treasury building which receives and pays out money locally; (h) issues
checks in payment of claims settled by the General Accounting Office; (i) prepares
the Daily Statement of the United States Treasury, showing the assets and
liabilities of the General Fund, the receipts and expenditures classified under
various categories, the monthly statement of the public debt, the monthly statement of the classified receipts and expenditures of the Government, and the
monthly statement of paper currency outstanding by kinds and denominations.
The Treasurer of the United States is Treasurer of the Board of Trustees of the
Postal Savings System, custodian of other trust funds, and custodian of certain
miscellaneous. securities.
IMPROVEMENT IN METHODS AND REPORTS
Because of the many inter-relations of the three fiscal bureaus composing the
Fiscal Service, an operations and methods staff is employed for the purpose of
studying and developing improved procedures designed to eliminate duplication
and overlapping of activities. This work is carried on in close cooperation with
related operations and methods staffs in the bureaus. During the fiscal year
1947, several important improvements were made resulting in savings amounting
to several hundred thousand dollars.
Daily Statement of the United States Treasury.—Effective July 1, 1946, three
important changes were made in the daily Treasury statement. A rearrangement was made of the statements relating to Public Debt, Guaranteed Obligations/and Contingent Liabilities to facilitate the use of the information by the
REPORT OF THE SECRETARY OF THE TREASURY
91
public a n d others concerned. T h e bases of t h e figures are t h e same as in t h e
previous s t a t e m e n t s .
T h e second change related to t h e m a n n e r of reporting net operations of wholly
owned G o v e r n m e n t corporations a n d other- business-type agencies in order to
conform to current b u d g e t a r y practice. Commencing July 1, 1946, t h e net
receipts or expenditures resulting from t h e agencies' operations (except sales or
redemptions of their obligations in t h e market) are included in budget expenditures, and therefore are shown on page 2 instead of page 3 of t h e daily Treasury
statement.
.
T h e t h i r d change concerned t h e m a n n e r of classifying a n d reporting expenditures representing disbursements of t h e Division of Disbursement of t h e T r e a s u r y
D e p a r t m e n t . Formerly this was done by classifying t h e individual checks as
expenditures after p a y m e n t b y t h e Treasurer of t h e United States. Under t h e
new procedure p a y m e n t s made by t h e Division of Disbursement are classified in
s u m m a r y and reported as expenditures on t h e basis of checks issued. A clearing ,
account for outstanding checks was shown on page 3 to reflect t h e a m o u n t of
such checks issued and classified in t h e daily Treasury s t a t e m e n t which have riot
yet been cleared through t h e accounts of t h e Treasurer's Office as paid checks.
This change provides a more realistic picture of current Government expenditures
so far as these classes of checks are concerned and affords a more economical
method of classification and reporting.
During t h e fiscal year, two other changes were made. T h e special s t a t e m e n t s
on t h e War Activities Program appearing in t h e middle-of-the-month issue were
discontinued. T h e last published s t a t e m e n t s for this program, cumulative
t h r o u g h J u n e 30, 1946, appeared in t h e daily Treasury s t a t e m e n t of July 15,
1946. However, t h e segregation of expenditures for war and defense activities
shown on page 2 was continued for t h e remainder of t h e fiscal year 1947, after
which it was discontinued. A new s t a t e m e n t entitled " B u d g e t S u m m a r y " was.
included on page 2 of t h e daily Treasury s t a t e m e n t commencing with t h e issue
of April 21, 1947, so as to provide current and comparative d a t a regarding t h e
s t a t u s of t h e budget with respect to t h e surplus or deficit and t h e related p u b h c
d e b t a n d General F u n d balance as of t h e end of t h e same periods.
D E P O S I T A R I E S OF P U B L I C
FUNDS
T h e Treasurer of t h e United States is t h e official custodian of moneys of t h e
United States. These funds are held in t h e form of gold and silver bullion,
currency, and deposits in Federal Reserve Banks, national banks, a n d other
designated domestic or foreign banks.
Gold bullion.—On J u n e 30, 1947, t h e T r e a s u r y D e p a r t m e n t held 607,610,088.3
ounces of gold bullion, which, a t $35 an ounce, was valued at $21,266,353,091.88,
an increase during t h e year of 28,478,907.8 ounces valued, a t $996,761,775.65.
This increase represents net acquisitions b y mints and assay offices valued at
$996,565,635.53; noncurrent gold coin acquired at the price of $20.67+ an ounce
a m o u n t i n g to $115,845.01 under* regulations dated December 28, 1933, and t h e
increment resulting from t h e revaluation of gold contained in these coins t o $35
an ounce, a m o u n t i n g t o $80,295.11.
Against this gold were liabilities of $20,242,963,358.79., consisting of $16,513,733,546.94 in t h e gold certificate fund of t h e Board of Governors of the Federal
Reserve System a n d $3,729,229,811.85 in special currency reserves. A balance
of $1,023,389,733.09 of gold remained in t h e General F u n d .
Silver bullion.—The silver holdings of t h e Treasury were valued on J u n e 30,
1947, a t $2,378,037,607.38, a decrease of $186,659.10 during t h e fiscal year.
These holdings included $1,923,912,883.91 in bulhon a t monetarv value,
$91,876,629.03 in buhion a t cost, $15,709.62 in bulhon a t recoinage value, $341,961,650 in silver dollars, and $20,270,734.82 in subsidiary coin.
Against t h e $2,265,874,533.91 representing bulUon held a t monetary value
a n d silver dollars were liabilities of $2,230,779,033 for outstanding silver certificates a n d $1,135,278 for outstanding Treasury notes of 1890, leaving $33,960,222.91 in silver a t m o n e t a r y value in t h e General F u n d in addition to t h e amounts
of bullion held a t cost or recoinage value a n d t h e subsidiary coin as set forth above.
Deposits.—Public moneys on deposit to t h e credit of t h e Treasurer of the
United States on J u n e 30, 1947, in designated Government depositaries a m o u n t e d
to $2,412,520,081.93 including items in transit." During t h e fiscal year 1947,
1,122 transfers aggregating $685,445,520 were required to establish, increase, or
restore t h e Treasurer's balances with depositaries.
92
REPORT OF THE SECRETARY OF THE TREASURY
Depositaries of the United States.—On June 30, 1947, there were in the. United
States and its possessions 13,230 depositaries holding funds on deposit to the
credit of the Treasurer of the United States and other Government officers.
This number included 1,715 general and limited depositaries, and 10,694 special
depositaries which held the proceeds of sales of United States securities. There
were 9,472 banks qualified as depositaries for withheld taxes, of which 635 held
time deposits to the credit of the Treasurer of the United States.
• Classes of depositary facilities available June SO, 1947
Deposits to the
credit of the
I Treasurer, U. S.i
Class
^ Federal Reserve Banks-.Other banks in continental United States:
General depositaries
^..
Limited depositaries
-Special depositaries, proceeds ofsale of United States securities
Depositaries for withheld taxes, time deposits
—
Insular and territorial depositaries
Foreign depositaries
_-Total
-
—-
-
2,412, 520,081. 93
1 Excludes amounts held in the naraes of other Governraent officers: $40,430,409.55 in insular and territorial depositaries, and $43,359,795.14 in foreign depositaries.
In respect to the. general and limited depositaries, 116 new designations were
made during the year, and 248 depositaries were discontinued. The decrease
in depositary facilities was due mainly to the decreased needs of the armed forces.
In 377 cases, the amount for which the depositary had been qualified was increased
and in 712 cases the amount was decreased, There were also 228 other changes
in designation.
'
.
Depositary honds.—Department Circular No. 660, dated May 23, 1941, as
amended, prescribes the regulations of the Treasury governing the issuance of
2 percent depositary bonds. These bonds are allotted to banks designated as
depositaries and financial agents of the Government. The interest on such bonds
provides an income to the banks which offsets the cost incurred by them in handling Government business.
2% depositary bonds
Issued
Redeeraed
Outstanding
June 30,1947
First Series—General depositary and fiscal agency operations-. $593,867, 760 $365, 267, 750 $228,600.000
127, 449, 500
30, 623, 500
96,826,000
Second Series—Operations incident to withheld taxes
Total
-
721, 317, 250
396,891, 250
325, 426,000
Banking facilities at military and other Government installations.—Upon request
of the respective governmental agencies, the Treasury Department has continued
the designation of depositaries to provide banking facilities at certain Army
posts, naval stations, veterans' hospitals, and other Government installations.
As of VJ-day, in August 1945, there were 361 such banking facilities in operation,
the largest number during the war period. By June 30, 1946, this number had
been reduced to 98, and by Juhe 30, 1947, to 68. The following statement shows
the number and classes of facilities provided at the peak of operations and on
June 30, 1947:
REPORT OF THE SECRETARY OF THE TREASURY
93
Limited hanking facilities at military, naval, and other Government installations
F a c i l i t y a u t h o r i z a t i o n s in force
Location of facilities
I n A u g u s t 1945
As of J u n e 30,
1947
123
117
49
A r m y posts a n d c a m p s A r r a y air fields
A r r a y hospitals. .1
T o t a l A r m y facilities.
N a v y yards and stations.
N a v y hospitals
M a r i n e Corps a c t i v i t i e s . .
27
3
5
T o t a l N a v y facilities
V e t e r a n s ' hospitals
--O t h e r G o v e r n m e n t installations-
35
11
2
T o t a l facilities
68
C O L L E C T I O N AND D E P O S I T OF
FUNDS
Collections representing funds due t h e United States are required to be deposited promptly with t h e Treasurer of the United States. This m a y be done by
delivering t h e funds (1) to a bonded accountable officer who will make the deposit,
(2) to an authorized depositary for credit to t h e account of t h e Treasurer of t h e
, United States, or (3) to the cash room of the Treasurer of the United States in
Washington.
T h e deposit of receipts is evidenced by a certificate of deposit issued by t h e
depositary, which serves as the basis upon which the Treasury D e p a r t m e n t issues
a w a r r a n t formally covering t h e funds into t h e Treasury.
During 1947 nearly 9 million collection items were received, deposited, a n d
recorded by t h e Division of Disbursement, and over 3 million commercial checks,
drafts, postal a n d express money orders were deposited with t h e Treasurer of t h e
United States for collection. This does not include collection items deposited direct with authorized depositaries by cohectors of internal revenue and other collecting officers. During t h e fiscal year 1947, net budget receipts exceeded $43.3
billion a n d receipts of t r u s t accounts exceeded $6.2 billion, a total of $49.5 billion.
Federal savings and loan associations.—On J u n e 30, 1947, t h e Federal Hoihe
Loan Bank System reported t o t h e Treasury D e p a r t m e n t t h a t 1,476 Federal savings and loan associations were eligible to qualify as fiscal agents under D e p a r t m e n t Circular No. 568, dated September 15, 1936, for t h e purpose of collecting
delinquent accounts arising out of insurance and loan tr.ansactions of t h e Federal
Housing Commissioner. Of this number, 72 have qualified for this purpose,
either by t h e pledge of collateral security or t h e filing of an acceptable surety
bond.
Withheld taxes.—The Current Tax P a y m e n t Act of 1943 provides for the collection a t t h e source of income taxes on salaries and wages. Under regulations issued
by t h e Treasury', t h e major proportion of t h e accumulated funds are deposited
monthly by employers in certain designated depositary banks which issue their
receipts to t h e employers. These receipts are t r a n s m i t t e d with quarterly tax
returns filed with collectors of internal revenue. Amounts deposited are p r o m p t l y
remitted to t h e Federal Reserve Banks for credit in the Treasurer's account.
This procedure has m a d e these funds available to t h e Treasury on a more current
basis, as compared with t h e method of quarterly tax p a y m e n t s . During t h e
fiscal year 1947, approximately $10 billion was collected through this procedure.
P A Y M E N T OF P U B L I C
CREDITORS
Under Executive Order dated June 10, 1933, t h e Treasury D e p a r t m e n t ,
through t h e Division of Disbursement, provides disbursing facilities for all executive d e p a r t m e n t s a n d establishments of t h e Government with the exception of
t h e Postal Service, United States marshals, t h e P a n a m a Canal, the. military
establishments, and certain Government corporations. I n addition to a central
office., in Washington, D . C , a n d 22 regional offices iri t h e continental' United
94
REPORT OF THE SECRETARY OF THE TREASURY
States, t h e Treasury D e p a r t m e n t maintains 24 other offices, of which 5 are in
outlying Territories of t h e United States and 19 are in foreign countries. During
t h e fiscal year, offices in Germany, China, and Nicaragua were closed. A regional
disbursing office was opened in Birmingham, Ala., t o meet t h e needs of t h e Social
Security Board, Veterans' Administration, a n d other agencies located in t h e area.
Eleven subregional offices handling emergency crop a n d feed loan p a y m e n t s for
t h e F a r m Credit Administration were closed on October 31, 1946, t h e work being
transferred to regional disbursing offices..
On July 1, 1946, t h e function of disbursement for t h e United States Coast
G u a r d was transferred from t h e N a v y D e p a r t m e n t to t h e Treas.ury, and 65 subregional offices were continued, with employees of t h e Coast Guard functioning
as assistants to t h e Chief Disbursirig Officer. On June 30, 1947, there were 63
employees of t h e State D e p a r t m e n t functioning, as disbursing officers b y delegation of a u t h o r i t y made p u r s u a n t to Executive Order 6166, and rendering accounts
in their own name for t h e State D e p a r t m e n t and other agencies for whom t h e y
provide disbursing facilities abroad.
During t h e year 159,739,118 p a y m e n t s b y check and 898,074 p a y m e n t s in cash
were made through t h e Division of Disbursement. These p a y m e n t s were supported b y nearly 11 million pay rolls and other vouchers. Of t h e checks issued,
over 140 million were in t h e form of t a b u l a t i n g card-checks payable b y Federal
Reserve Banks as agents of the Treasurer of t h e United States.
During t h e year $32,369,596,786 was advanced to all disbursing officers of t h e
United States b y accountable warrant. These funds were credited t o checking
accounts on t h e books of t h e Treasurer. Over 260 mihion checks were paid and
charged to these checking accounts. Of this n u m b e r nearly 182 million were
paid for t h e Treasurer by Federal Reserve Banks acting as his agent. T h e total
n u m b e r of checks paid during 1947 decreased b y 25.4 percerit from 1946, a n d the.
n u m b e r of p a y m e n t s by Federal Reserve Banks decreased by 19.2 percent.
Budget expenditures, on t h e basis of t h e Daily S t a t e m e n t of t h e United States
Treasury, aggregated $42.5 billion, a decrease of $21.2 bilUon frorii 1946, a n d
expenditures of t r u s t accounts, etc., approximated $6.8 billion, a decrease of $1.4
billion from t h e preceding year.
Balances to t h e credit of disbursing officers and Government agencies decUned
b y $5.8 billion to $8.9 bilUon as of J u n e 30, 1947. T h e n u m b e r of checking
accounts decreased from 10,239 to 7,588 during t h e same period.
During t h e year 48,085 substitute checks were requested b y payees or endorsees to replace original checks which h a d been lost, stolen, mutilated, defaced,
or destroyed.
T h e r e were 165 cable transfers, totaling over $12.6 million, to Government
officers located in fifteen different foreign countries, a n d 1,948 drafts in the currencies of 48 foreign countries were purchased a t a cost of $392,690.
Bonding of certifying ofiicers.—Public Law 389, approved December 29, 1941,
provided for t h e bonding of officers a n d employees authorized to certify vouchers
for p a y m e n t by disbursing officers in t h e executive branch of t h e Government,
except t h e military services. On June 30, 1947, there were approximately 7,800
bonded certifying officers certifying vouchers under t h e act.
Agent cashiers.—There are approximately 2,040 bonded employees of Governm e n t agencies who have been designated as agent cashiers of t h e Chief Disbursing Officer of t h e Treasury D e p a r t m e n t . Most of these agent cashiers are located
in t h e United States, making emergency p a y m e n t s in cash in cases in which it is
impractical to make p a y m e n t s through t h e regional disbursing offices of t h e
Treasury. Others are on d u t y in various p a r t s ^of the world in connection with
various governmental operations.
Payments in foreign countries.—^Creditors abroad m a y be paid by any of t h e
following m e t h o d s : (a) T h r o u g h State D e p a r t m e n t representatives in foreign
countries who function as disbursing officers by delegation of a u t h o r i t y from t h e
Division of Disbursement, and who make payraents in local currency acquired
either b y purchase with a check drawn on t h e Treasurer of t h e United States or
b y sale of a draft drawn on t h e Secretary of S t a t e ; (b) in countries other t h a n
Germany or J a p a n b y dollar checks issued in t h e United States and mailed to
payees; (c) t h r o u g h t h e transmission of United States dollar checks to t h e War
D e p a r t m e n t with t h e request t h a t Army finance officers abroad make p a y m e n t in
local currency; a n d (d) in local currency drawn from balances held for t h e account of t h e Treasurer of t h e United States in foreign depositaries.
Withheld foreign checks.—Payment b y means of dollar checks has been resumed in all countries except Germany a n d J a p a n . P a y m e n t s t o persons in
REPORT OF THE SECRETARY OF THE TREASURY
95
these two countries are still restricted by Department Circular No. 655, dated
March 19, 1941, as amended.
A total of $26,714,927.61 has been deposited in the special deposit account
entitled "Secretary of the Treasury, Proceeds of Withheld Foreign Checks." Of
this amount, $6,548,767.93 has been paid to individual claimants; $698,319.47
has been returned to the appropriation from which the payments were originally
made; and $10,272,475.61 has been covered into the Treasury as miscellaneous
receipts. As of June 30, 1947, a balance of $9,195,364.60 remained in the special
deposit account to the credit of approximately 13,200 payees.
Under Public Law 622, approved August 7, 1946, provision was made for
paying claims on account of withheld checks involving payments to veterans or
their beneficiaries out of the current appropriations of the Veterans' Administration. The Veterans' Administration is reimbursed from the special deposit
account for payments made to the extent such funds are held on deposit in the
special deposit account.
Settlement of the accounts of fiscal ofiicers.—Public Law 72, approved May 19,
1.947, establishes a limit of time of three years in whiish the General Accounting
Office shall make final settlement of the accounts of any disbursing, accountable,
or certifying officer of the Government from the date of receipt of the accounts.
No further charges or debts shall be raised in the accounts thereafter, except as
to moneys which have been or may be lost to the United States due to fraud or
criminality on the part "of the officer. The law will take effect three years after
the date of its enactment.
PUBLIC D E B T OPERATIONS
During the fiscal year ending June 30, 1947, the total gross public debt and
guaranteed obligations was reduced from $269,898,484,032.56 to $258,375,903,293.83, a net decrease of $11,522,580,738.73. Issues of pubhc debt securities
during the year amounted to $127,761,090,932.28 and redemptions totaled
$138,896,806,996.87, a net excess of redemptions of $11,135,716,064.59; outstanding guaranteed obligations not owned by the Treasury Department decreased
by $386,864,674.14 to $89,520,185.16.
Armed forces leave bonds.—In carrying out the provisions of the Armed Forces
Leave Act of 1946, the Secretary of the Treasury, the Secretary of War, and the
Secretary of the Navy reached an agreement under which finance officers of the
Army, Navy, Marine Corps, and Coast Guard were designated issu ing agents
for a new type of security known as the armed forces leave bond. By June 30,
1947, bonds aggregating $1,846,906,500 in face value had been issued through
these facilities.
Under the original provisions of the Armed Forces Leave Act of 1946, the
bonds would not mature for five years, but became payable upon the death of the
registered owner or upon assignment to the Veterans' Administration in payment
of premiums on Government life insurance policies. Through June 30, 1947,
armed forces leave bonds aggregating $53,934,050 in face value had been redeemed
under these provisions of the act.
United States savings bonds.—rDuring the year the number of United States
savings bonds issued fell below the volume of the immediately preceding fiscal
years; however, over 77 million, stubs representing issued United States savings
bonds of Series E were received for registration. The reduced volume of sales
did not result in a proportionate reduction in .staff, because, in addition to operations
necessary to the servicing of the outstanding savings bonds, there had been
109.7 million stubs on hand for which the processing was incomplete on July 1,
1946.. By June 30, 1947, the unprocessed stubs on hand had been reduced to
approximately 45.7 million.
During the same period, 400 thousand Series F and 1,900 thousand Series G
bonds were registered.. With respect to Series G bonds, over 372 thousand new
accounts were established during the year bringing the total number of accounts
on June 30, 1947, to over 3.9 million. During the year, over 7.8 million interest
checks were issued in favor of owners of Series G savings bonds.
There were 49,882 applications during the year for the issue of duplicates
of lost, stolen, or destroyed United States savings bonds, in addition to 10,003
such cases on hand at the beginning of the year. In 10,387 cases the bonds were
recovered, and in 29,898 cases the issuance of duplicate securities was authorized.
On June 30, 194/, only 5,046 cases remained unsettled.
96
REPORT OF T H E SECRETARY OF T H E TREASURY
Over 138 million savings bonds were redeemed and audited during the year.
The audit of savings bonds is conducted principally through five regional offices
of the Register of the Treasury.
In connection with the voluntary payroll allotment plan for the purchase of
United States savings bonds by Federal employees, the Chief Disbursing Officer
is the bond issuing officer for the departments and agencies served by the Division of Disbursement. During the year the Division of Disbursement collected
$83,883,015.73 through withholdings from salaries of Federal employees on account
of bond allotments, and received $280,781.25 on account of cash sales made for
the Reconstruction Finance Corporation, which is not otherwise serviced by
the Division of Disbursement. Under this program, there were 2,970,901 savings
bonds issued, for which $87,076,458.25 was covered into the Treasury as public
debt receipts during the fiscal year. The excess of issues over withholdings is
due to the purchase of certain of these bonds partially by payroll deductions
made in the preceding fiscal year. Pursuant to Department Circular No. 687,
dated May 29, 1942, the Treasury Department also prepared 138,455 bond
issuance schedules for the Federal agencies participating in the voluntary payroll
allotment plan.
Registered marketable issues.—The Treasury Department maintains individual
accounts for owners of registered marketable securities of the United States and
various Government corporations and credit agencies, and pays periodic interest
on the interest-bearing debt. On June 30, 1947, there were 432,585 individual
accounts covering registered securities aggregating nearly $45 billion in principal
amount. There were 431,456 accounts covering publicly held public debt issues,
of which 418,164 accounts were for interest-bearing loans, and 13,292 were for
matured loans no longer bearing interest. The remainirig accounts included
those for special issues and for the securities of various Government corporations
and credit agencies.
During the year, 18,382 new accounts were opened, 47,465 were closed, and
6,253 were reduced in amount. Over 857 thousand inte'rest checks were issued
to owners of record.
Interest on the public debt.—On the basis o f t h e daily Treasury statement,
$4,957,922,483.85 was paid as interest on the public debt, as shown in the following
table:
Class of interest payment
Interest coupons paid
,
Registered interest checks paid
-.
-Discount on Treasury bills sold
Accrued interest paid in cash on obligations at redemption
Discount accrued on United States savings bonds
'.
--Interest paid on obligations, special series (transfer-counter warrant transactions)
Total p a y m e n t s - Less repayments
Net payments
-
$2,763, 556,047.04
1,042,939, 404.15
64, 503, 796. 04
201, 550,000. 23
690, 930, 721. 95
. 208,887, 600.14
.-
-
-
-'
4,972, 367, 569. 66
14, 445,085, 70
4, 967,922, 483. 85
Servicing' of securities for other agencies.—In accordance with agreements between
the Secretary of the Treasury and the several Government corporations and agencies and insular governments, the Treasurer of the United States acts as special
agent for the payment of principal and interest on their securities. The amounts
of such payments during the fiscal year 1947 were as follows:
Principal
Name
C o m m o d i t y Credit Corporation
F e d e m l h o m e loan b a n k s
. Federal land banks
Federal F a r m Mortgage Corporation
Federal H o u s i n g A d m i n i s t r a t i o n
H o m e O w n e r s ' L o a n (jorporation
Reconstruction Finance Corporation
Philippine Islands
P u e r t o Rico
Total
'....
--
Interest
p a i d i n cash
Registered
interest
-.-.
._
$166,000,000.00
18, 436,400 00
1,289,400.00
-.
10, 604,150. 00
2,119,926.00
5,000.00
i.
1,876,000. 00
765,000.00
-
$460, 380 36
17,494 64
1,909.40
132, 676. 80
803. 76
18, 700.00
•• 2, 285. 00
41,276.00
110, 262. 50
200,993,875 00
634, 249. 95
1,459, 301. 25
$13,457. 20
Coupon
interest
$66.30
865, 375. 00
11,192,689.02
70, 242. 62
1,294, 306. 65
99,438. 61
56.26
1,120,897. 60
391, 890. 00
13,740,545.20
97
REPORT OF THE SECRETARY OF THE TREASURY
PAPER CURRENCY
Paper currency.—The following table shows the value of paper currency issued
or redeemed, and the amounts outstanding at the beginning and end of the
fiscal year:
Outstanding June 30, 1947
Outstanding
June 30, 1946
Class
issued
Redeemed
Gold certificates- - - - $2,866, 271,539
Silver certificates ---.
2, 251,935, 304 $1, 596, 660,000
346,681,016
175,112,000
United States notes—
Treasury notes of 1890
1,150,438
Federal Reser.ve notes -. 24, 839, 323, 305 6,277,720,000
Federal Reserve Bank notes469, 343, 376
Natlonal bank notes
115,114,110
Total
-
30,889,819,087
8,048,492,000
In
Treasury
Outside
Treasury ^
$2,203, 220
$829,480 $2,863, 238,839
1,603, 222,600 13, 536) 645 2,230,837,069
343, 695,896
175,112,000 2, 986,121
1,146, 978
1, 630 •
1,830
6, 336, 548, 650 66,614, 685 24, 713,880,070
408,917,868
526,153
59,900, 364
107,064, 340
7, 791, 660
268, 210
8,184, 780, 224
84, 769, 824
30,668, 771,039
NOTE.—On basis of Monthly Statement of Paper Currency Outstanding.
1 Includes holdings of Federal Reserve Banks.
Paper currency outstanding on June 30, 1947, including amounts held by Federal Reserve Banks, is shown by series, class, and denomination in the following
table:
Old series
(issued prior
to 1929)
Class
United States notes
Treasury notes of 1890
Federal Reserve notes
Fftflp.ral Reserve Bank notes
National bank notes
Gold certificates
Silver certificates
- •
^
-
Total---Percent of total outstanding
_.-.
DENOMINATION
$1._..
_
$2
$6
$10
_
$20
_
$50
$100
—
$600 - $1000
..-.
$6000 . . .
.
•
$10,000
i
$100,000
Fractional parts- -Deduct:
Unknown destroyed
Total
.1
_- . -,
-..
Total
$26,- 222,443 . $321,458, 573. $346,681,016
1,148, 608
1,148, 608
47, 978,150 ,24, 732, 616, 505 24, 780,494,665
2,137,636
407,306,475
409,443, Oil
31,837,273
76,486, 277
107,322, 550
24, 230, 674
2,839,837,645
2,864, 068,319
30,821, 239 2,213,561,466
2,244, 372, 704
163,376, 923 30, 690,164, 940 30,753, 530,863
0.53
99.47
100.00
26,647, 562
7,430, 308
31,468, 735
37, 347,662
33,429, 716
10,201, 940
11, 940, 370
2, 214,000
3, 328, 600
135,000
170, 000
62,140
----
New series
(issued after
1929)
1,106,306,923
70,859, 270
2,178,850,005
6, 600, 060, 510
9, 210, 074,820
2, 516, 052,325
4,880,377,860
444, 500, 760
841,887, 000
8,285,000
23, 910,000
2,810, 000, 000
487
1,132,964,476
78, 289, 578
2; 210,318, 740
6, 537,398,172
9, 243, 504, 636
2, 625, 264,266
4, 892,318, 220
446,714,750
845, 216, 600
8,420,000
24, 080,000
2,810, 000, 000
62,627
1, 000, 000
1, 000, 000
163, 375, 923
30, 690,154, 940 30, 753, 530,863
98
REPORT OF THE SECRETARY OF THE TREASURY
The percentages of each denomination to the total outstanding paper currency
by denomination is shown in the following statment as of the end of each fiscal
year since June 30, 1943:
Denomination
J u n e 30, 1943
J u n e 30, 1944
J u n e 30,1946
J u n e 30, 1946
J u n e 30, 1947
P e r c e n t of t o t a l a m o u n t o u t s t a n d m g
$1
. $2
$5
$10
$20
_
$50
$100
$500
$1000
-.
$5000-$10,000
$100,000
-
5.05
.35
9.91
23.66
24.35
6.17
11.38
1.69
3.33
.07
.24
13.80
-
—--
4.48
.33
8.59
22. 83
25.83
6.91
13.94
1.99
3.78
.06
.16
11.10
;
3.82
.27
7.73
22.21
30.28
7.83
14.47
1.48
2.66
.04
.12
9.10
4.01
.-30
7.94
22. 91
28.62
7.47
14.09
1.73
3.13
.06
.18
9.67
3.68
.25
7.19
21.26
30.05
8.21
15.91
1.45
2.75
.03
.08
9.14
Total....
100.00
100.00
100.00
100.00
100. 00
T o t a l a m o u n t of cur. rency outstanding
$20,366,717,055 $25,316,087, 612 $29,378,363,847 $30,889,819,087 $30, 753,630,863
Receipts, issues, and stocks of distinctive paper for use in the manufacture of
paper currency were as follows during the j^ear:
Sheets of 12 subjects each for
t h e m a n u f a c t u r e of—
U n i t e d States
currency
O n h a n d J u l y 1, 1946
Received
Issued
O n h a n d J u n e 30, 1947
1
.--.
-
.:
34,146, 379
96,999, 974
119,461,023
11, 695, 330
- -
Philippine
currency
756,832
39, 600
716, 232
United States paper currency shipped during the year from the Treasury in
Washington to Federal Reserve Banks and branches and to others amounted to
$1,790,436,893, an increase of $107,827,718 over the previous year.
The proceeds of currency received into the Treasurer's cash by the Currency
Redemption Division of the Treasurer's Office during the year amounted to
$496,146,542, of which $354,966,820 was in Federal Reserve notes, $59,101,424
in Federal Reserve Bank notes, $7,282,163 in national bank notes, and $74,796,135
in United States Currency.
Canceled Federal Reserve notes amounting to $4,776,479,700 were received
from Federal Reserve Banks and branches for credit of Federal Reserve agents.
The Destruction Committee supervised the incineration of redeemed canceled
currency as follows:
Class of c u r r e n c y
Gold certificates
Sliver certificates
U n i t e d States notes
T r e a s u r y notes of 1890
-F e d e r a l Reserve notes
Federal Reserve B a n k notes
N a t i o n a l b a n k notes
Fractional currency
T o t a l dollar c u r r e n c y
Pieces
:
-.
-..
.-.
--
_.
j
Value
97,398
1,154,870,845
45,340, 767
230
473,053,858
4, 096, 267
533,154
2, 423
' $2. 202, 600
1, 578,459,357
173,179,461
1,832
5,161,934,350
69,396,364
7, 791, 560
498
1, 677, 994, 932
6. 982,966,012
In addition the Destruction Committee, at the request of the War Department, supervised the destruction of 51,704,000 excess Alhed Military Schilling
currency notes.
99
REPORT OF THE SECRETARY OF THE TREASURY
DISTRIBUTION OF COINS
During the year shipments of current silver and minor coins between the
United States Treasury, the United States mints, and the Federal Reserve Banks
and branches were as follows:
Kind
Silver:
S t a n d a r d dollars
Half dollars
Quarter dollars
Dimes.Minor:
5-cent coins
Cents. :
S h i p m e n t s from
T r e a s u r y to
Federal Reserve
Banks and
branches
S h i p m e n t s from
m i n t s a n d assay
oflBces to T r e a s u r y a n d Federal
Reserve B a n k s
and branches
$80,000.00
$8,930,000.00
3, 751,100.00
12,813,000.00
28, 081, 900.00
280,000.00
8, 960, 500.00
8, 639, 400.00
360,000.00
71,176, 900.00 ^
. .
-
Total--
-
-
-
-
Shipments
between Federal
Reserve B a n k s
and branches
$1,385,000.00
4,975,000.00
2,100, 000.00
1,965,000.00
-
685, 000.00
11,110, 000.00
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 during the year in the amounts of $177,719.12 and
$3,001,613.35, respectively.
SECURITIES HELD IN SAFEKEEPING
The Treasurer is custodian of securities pledged for the safekeeping and prompt
payment of Government deposits in bank depositaries, of postal savings funds in
depositaries designated to receive such funds, and, under provisions of law or by
direction of the Secretary of the Treasury, of various trust funds comprised of
bonds and other obligations and of securities placed in safekeeping by various
Government executive departments and bureaus. The face value of such securities held on June 30, 1946, and June 30, 1947, classified according to the purpose
for which held, is shown in the following table:
Purpose for which held
June 30, 1946
June 30, 1947
$275, 835,150
$375, 652, 850
To secure deposits of public moneys in depositary banks...
5,846, 460
To secure deposits of postal savings funds
:.-6, 684, 660
For District of Columbia:
11, 682, 050
11, 882, 050 •
Teachers'retirement and annuity fund '-'.
1, 773, 000
1,773,000
Waterfund
J
Other
.'.
.
.
17, 662,170
17, 591,170
61,071,830
69,302,440
United States savings bonds held for various depositors
—
2, 842, 206, 290 2, 699, 908, 490
Forthe Board of Trustees, Postal Savings System
For the Secretary of War
13,166, 230
13,165,230
For the Secretary of the Treasury:
Foreign obligations (World War I)
•12, 072, 223, 757 12,072,130,757
46,737,095
Obligations on account of sales of surplus property
46, 737, 095
Capital stock and obligations of Government corporations and agencies 12, 959, 933, 645 14,081,502,815
Other
^1
.-.
4, 399, 515
3, 448, 502
For Federal Deposit Insurance Corporation
887,151,100
768,151,100
For Attorney General 2
L
20, 861, 207
20, 861, 207
Miscellaneous
173,243,592
111,777,887
Total-—
-
-
-
-
29, 311.931,163 30,371,329,061
1 The securities held for the District of Columbia teachers' retirement fund were, in accordance with the
act approved Aug. 7,1946, transferred to and held subject to the instructions of the Secretary of the Treasury.
2 Noninterest-bearing participating certificate for funds deposited in the German special deposit account
(seep. 101).
°
Securities and funds, Philippine invasion.—As of June 30, 1947, there had been
settled through the Bureau of Accounts more than 90 percent of all cases involving
the custody of valuables delivered to the United States High Commissioner to the
Philippine Islands for safekeeping during the emergency due to the Japanese
invasion.
764788—48
8
100
REPORT OF T H E SECRETARY OF T H E TREASURY^
Cases settled cover $235,448.61 in United States Treasury checks, $267,950
in United States Treasury bonds, $2,559,201 in United States currency, 313 bars
of gold valued in excess of $2,265,000, and 42 containers of jewelry, securities,
and other valuables.
Cases on hand on June 30, 1947, cover $1,200 in United States Treasury checks,
of which $1,000 was in process of being settled at the close of the fiscal year;
$625 in United States Treasury bonds; $4,780 in United States currency; 8 bars
of gold; a galvanized box containing miscellaneous securities; and 2 legal documents.
Undelivered savings bonds and cash refunds.—In connection with the operation
of the payroll savings system for the purchase of savings bonds by employees of
private contractors performing work for the Government, arrangements have been
made for the safekeeping by the Treasury Department of undelivered bonds and
unclaimed payroll deductions. These bonds and funds, which belong to persons
whose whereabouts are unknown, are received by the Treasury under arrangements with the various departments and establishments having jurisdiction over
the contracts, and, in many cases, direct with the employers. The bonds and
funds are held subject to reclaim by employees upon proper identification. Under
present arrangements, undelivered bonds are forwarded by contractors to the
Division of Loans and Currency in Chicago. Unclaimed bond deductions not
sufficient to buy bonds are forwarded to the Division of Investments of the
Bureau of Accounts at Washington, D. C. As of June 30, 1947, funds amounting
to $476,407.47 had been received, covering deductions in 101,797 cases, and
$20,115.77 in 1,945 cases had been returned, leaving a balance of $456,291.70
unclaimed' in 99,852 cases.
,
INVESTMENT OF FUNDS
Trust and special funds invested by the Treasury Department.-^XJnder various
provisions of law creating trust and special funds, the Secretary of the Treasury
or the Treasurer of the United States is authorized to invest such portions of
the funds as are not required to meet current withdrawals. The following, statement shows the amount of Government and other securities held in these funds at
the close of the fiscal year. Further details on each of these funds are shown in
tables 60 through 81.
•
Securities held as investments in trust and special funds, June SO, 1947
[Par values in thousands of dollarsl
Government securities
Fund
Adjusted service certificate fund-Ainsworth library fund, Walter Reed General Hospital
Alaska Railroad ret.irfiment and disability fnnd, ,
- .
-
.
_._
Canal Zone retirement and disability fund
_
Civil service retirement and disa^bility fund .
^
„
District of Colnmbia teachers retirement a,ncl annuity fund ,
District of Colnmbia water fund
Federal old-age and snrvivors insnra.nce tmst fnnd., ,.
Foreign service rp.tirement nnd disability fnnd
L i b r a r y of Congrp.ss t m s t f n n d . ,
, , ..
Longshoremen's and harbor workers' compensation fund
National Institute of Health gift fund
N a t i o n a l p a r k trn.st fund
N a t i o n a l .sorvice life insurance fund
Pershing Hall Memorial fund
Railroad retirement account.
^^
_ _
TTnemplo3rment t m s t fund
.
U . S- floVP.rnment life in.sura,uce fund
,„.
.
.. .
_,
. . . .
....
TJ, S. Naval A cademy general gift fund..
.....
Workmen's Compensation Act, within the District of Columbia. Total
_
.
$12, 250
10
2,680
12, 267
2,436, 238
11, 629
1, 773
8, 742,334
9,638
416
86
18
6,473,685
193
806, 600
7,852,000
1, 254,000
85
71
27,613,863.
Other securities
Total
76
$12, 250
10
2,680
12, 257
2,435, 238
11,882
1,773
8, 742,334
9,638
76
416
86
18
6,473,686
193
806, 500
7, 852,000
1, 254,000
86
71
329
27, 614,192
• $253
101
REPORT OF THE SECRETARY OF THE TREASURY
District of Columbia teachers' retirement and annuity fund.—Pursuant to Public
Law 624, approved August 7, 1946, the District of Columbia teachers' retirement
and annuity fund has been established in the Treasury. Amounts deducted from
salaries and voluntary contributions by teachers in the public school. system of
the District of Columbia are deposited into the fund. Under the act, the District
of Columbia teachers' retirement fund was abolished and the amounts in that
fund and in the related Government reserve fund were transferred to the new
fund. The. act provides that the new fund shall be held and invested by the
Secretary of the Treasury. (See table 65.)
Unemployment compensation disability payments.—Section 416 of Public Law
719, approved August 10, 1946, amends the Federal Unemployment Tax Act by
providing that the States may withdraw amounts deposited in the unemployment
trust fund on account of employee contributions for the purpose of paying unemployment compensation disability payments. The States of California and
Rhode Island have passed legislation in connection with the Federal act and
have made withdrawals from the unemployment trust fund for the purpose of
paying disability benefits.
Alien property trust fund.—A statement of the alien property trust fund as of
June 30, 1947, follows:
Alien property trust fund, June SO, 1947
Credits (net):
'
Amount
Trusts-----1
--__ $39,855,364. 30
Earnings on investments, etc
26, 582, 256. 49
Total
.
66,437, 620. 79
Assets:
Investments:
Participating certificates issued, section, 25 (e) of the Trading with the
Enemy Act:
Noninterest-bearing
$20, 861, 206. 97
5 percent interest-bearing-__.
34,347,476.76
55, 208, 683. 73.
Cash balance with Treasurer of the United States. 11, 228, 937. 06
Total fund assets June 30, 1947.-__
i . 66,437, 620. 79
Checks issued by the Treasury Department during the year to the Alien
Property Custodian on account of the alien property trust fund amounted to
$350,000 on account of the administrative expense fund.
LOANS, CREDITS, AND CAPITAL SUBSCRIPTIONS
Credit to the United Kingdom.—Through June 30, 1947, the Treasury paid
$2,050,000,000 to the United Kingdom out of the credit of $3,750,000,000 under
the financial agreement of December 6, 1945. These payments were as follows.
Date
July 18, 1946
Sept. 5, 1946
Oct. 24, 1946
Jan. 2, 1947Feb. -20, 1 9 4 7 - - - : - - - - Mar. 10, 1947
Apr. 1, 1947
Date
Amount
$300, 000, 000
100, 000, 000
200, 000, 000
200, 000, 000
100, 000, 000
200, 000, 000
200, 000, 000
Apr.
Apr.
May
June
June
21, 1947
23, 1947
12, 1947
2, 1947
20, 1947
Total
.
Amount
...
50, 000, 000
200, 000, 000
200, 000, 000
200, 000, 000
100, 000, 000
2, 050, 000, 000
Federal Farm Mortgage Corporation.—The Federal Farm Mortgage Corporation
retired capital stock in the amount of $49,000,000 by repayment during the fiscal
year 1947,-which, together with the repayment of $100,000,000 for capital stock
made in 1941 and $50,000,000 made in 1946, reduced the outstanding capital stock
of the Corporation to $1,000,000 on June 30, 1947.
102
REPORT OF THE SECRETARY OF THE TREASURY
During 1947, no appropriations were approved and no p a y m e n t s were made to
t h e Federal F a r m Mortgage Corporation on account of reduction in interest rate
on inortgages.
Federal land hanks.—Since J u n e 26, 1947, t h e United States has had no proprie t a r y interest in any Federal land bank. T h e capital stock of $39,957,850 outstanding a t t h e beginning of t h e fiscal year 1947 was retired by r e p a y m e n t during
t h e year, a n d t h e balance of paid-in surplus subscriptions of $36,924,408.39 was
repaid on J u n e 26, 1947. No appropriations were approved and no p a y m e n t s
were m a d e to t h e Federal land banks during 1947 on account of reductions in
interest on mortgages. Details of prior years' transactions are given on pages.
155 t o 157 of t h e Annual Report of t h e Secretary of the Treasury for 1946.
Federal Crop Insurance Corporation.—The first Deficiency Appropriations Act,
1947, approved M a y 1, 1947, appropriated $20,000,000 for t h e subscription and
p a y m e n t by t h e Secretary of t h e Treasury of capital stock of t h e Federal Crop
Insurance Corporation. Subscription and p a y m e n t were effected during t h e
fiscal year 1947, bringing t h e total outstanding capital stock of t h e Corporation to
$90,000,000 on J u n e 30, 1947.
Reconstruction Finance Corporation.—Public Law 132, approved J u n e 30, 1947,
provides a method for fixing t h e interest r a t e on t h e Corporation's obligations,
which m a y only be issued to t h e Secretary of t h e Treasury, by providing t h a t t h e
r a t e of interest shall be determined by t h e Secretary of t h e Treasury, taking into
consideration t h e current average r a t e on outstandihg marketable obligations of
t h e United States as of t h e last day of t h e m o n t h preceding t h e issuance of the
obligations of t h e Corporation. T h e act also authorizes and directs t h e Reconstruction Finance Corporation to transfer to t h e Secretary of t h e Treasury all
t h e stock of t h e Federal home loan banks held by t h e Reconstruction Finance
Corporation and provides further t h a t t h e Secretary of t h e Treasury shall cancel
notes of t h e Corporation, and sums due a n d unpaid upon or in connection with
such notes a t t h e time of their cancellation, in an a m o u n t equal to t h e par value of
t h e stock so transferred.
Smaller War Plants Corporation.—By Executive Order 9665, approved December 27, 1945, a n d effective J a n u a r y 28, 1946, t h e assets a n d liabilities of the
Corporation, with t h e exception of certain funds available for administrative
expenses transferred to the D e p a r t m e n t of Commerce, were transferred for
liquidation purposes to t h e Reconstruction Finance Corporation, During the
fiscal year 1947, t h e Reconstruction Finance Corporation paid $135,600,000 to
t h e Treasury D e p a r t m e n t as partial r e p a y m e n t of t h e $200,000,000 capital stock
of the Smaller War Plants Corporation owned by t h e Treasury D e p a r t m e n t .
Export-Import Bank of Washington.—Public Law 173, approved July 31, 1945,
provided t h a t t h e E x p o r t - I m p o r t Bank of Washington shall have a capital stock
of $1,000,000,000 subscribed by t h e United States. During the fiscal year 1947,
the Secretary of t h e Treasury made p a y m e n t for $325,000,000 in stock of the Bank,
increasing t h e subscription of t h e United States to t h e m a x i m u m authorized
by law. This law also authorized t h e Bank to issue from time to time for purchase
by t h e Secretary of t h e Treasury, its notes, debentures, bonds, or other obligations
in an aggregate a m o u n t outstanding a t one time of not to exceed two and one-half
times t h e authorized capital stock of t h e Bank. During 1947, t h e Secretary of t h e
Treasury purchased $516,200,000 of t h e Bank's notes under this authorization.
Public Law 89, approved J u n e 9, 1947, provides a change in method for determining t h e r a t e of interest on obligations of t h e E x p o r t - I m p o r t Bank of Washington by providing t h a t t h e Secretary of t h e Treasury shall determine t h e rate,
taking into consideration t h e current average r a t e on outstanding marketable
obligations of t h e United States as of t h e last day of t h e m o n t h preceding t h e
issuance of the obligation of t h e bank..
*
Advances to Federal Reserve Banks for industrial loans.—Advances to Federal
Reserve Banks for industrial loans were authorized by t h e act of June 19, 1934,
which amended the Federal Reserve Act. See pages 184 and 185 of t h e Annual
Report of the Secretary of the Treasury for 1940 for further details concerning
this subject.
T h e last advance m a d e by the Treasury was on October 14, 1937. During
the fiscal year 1947, p a y m e n t s amounting to $67,554.06 were received b y . t h e
Treasury. T h e following s t a t e m e n t summarizes transactions through J u n e 30,
1947:
103
REPORT OF THE SECRETARY OF THE TREASURY
Advances to Federal Reserve Banks for industrial loans, and payments hy such
B a n k s to the Treasury, through J u n e SO, 1947
Advances by Treasury
Federal Reserve Bank
Atlanta
Boston.-.
Chicago
Cleveland
Dallas
Kansas City..
Minneapolis..
New York
Philadelphia..
Richmond
St. Louis
San Francisco
Maxiraura
authorized
272,031. 55
230, 236. 88
748, 516. 70
146, 863. 66
359, 338.10
131, 276.30
509, 467. 65
529, 210.65
620, 883. 52
808, 291. 43
093, 112. 25
850, 328.30
Total...
139, 299, 556. 99
Payments received by Treasury
Total advances During fiscal
through June
year 1947
30, 1947
$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
2,156, 795. 01
27, 546,310.97
$2,150.38
871.49
866. 27
500. 00
63,165. 92
67, 654.06
Total through
June 30, 1947
$79,176. 98
280,843.94
150, 618.44
82,929.94
102,000.17
64, 201. 22
56,614.84
344,307.45
716.347.14
170, 501.11
7,062. 86
101,186. 50
2,153,789. 59
Railroad obligations.—Total receipts during t h e fiscal year on account of realization on railroad securities acquired u n d e r section 210 of t h e T r a n s p o r t a t i o n
Act of 1920, as amended, were $108,323.30.
Following is a s u m m a r y of t r a n s a c t i o n s in railroad obhgations acquired u n d e r
t h e T r a n s p o r t a t i o n Act of 1920, or t h e Federal Control Act.
S u m m a r y of railroad obligations held hy the Government as of J u n e SO, 1947, hy
classes
Class
Principal
a m o u n t originally held
Transportation Act:
$282,712,837.36
Sec. 207 Sec. 210
. . . . . . 290,800. 667. 00
F e d e r a l Control A c t :
Equipraent trust
notes .
- . -- 346, 556, 750. 00
98, 401, 755.00
Sec. 7
62,103,453. 28
Sec 12
Total
1,080, 576, 462. 64
Losses a n d
Principal
principal writa m o u n t held
t e n off on
J u n e 30, 1947 account of reorganizations
$3,707,000.00
16,838,377. 23
1 $1, 260, 669. 46
2 7, 234, 668. 09
T o t a l cash collections
Principal
$277, 745,167. 90
266, 727, 721. 68
Interest
$54,386, 362. 70
93,898, 604.96
45,338,918. 25
346, 556. 750.00
98,401, 755. 00 • 23,100,662.27
4, 248,171.96
62,103,453. 28
20, 546, 377. 23
8,495, 237. 65 1,051, 534,847. 86
220,972, 620.14
1 Includes (a) loss on account of the sale on the raarket of Kansas, Oklahoraa & Gulf Ry. Co. stock, $10,669.46, and (6) principal of Minneapolis & St. Louis.R. R. Co. written off on account of reorganization,
$1,250,000. .
2 Includes (a) losses on account of sales pursuant to the provisions of act of Aug. 13, 1940; notes of the
Des Moines & Central Iowa (formerly the Interurban Railway Co.), Wichita Northwestern Ry. Co.,
Virginia Blue Ridge Ry., and the Wilmington, Brunswick & Southern R. R. Co., $1,042,003.09, (6) principal
written off on account of reorganizations; Fort Dodge, Des Moines & Southern R. R. Co., $200,000; Minneapolis & St. .Louis R. R. Co., $1,382,000; Alabaraa, Tennessee & Northern R. R. Corp., $124,965; total
$1,706,965; and (c) principal written off ot carriers whose assets when corapletely liquidated were not sufficient to raeet these clairas; Gainesville Northwestern R. R. Co., $75,000; Missouri & North Arkansas Ry.
Co., $3,500,000; Salt Lake & Utah R. R. Co.. $872,600: and Vireinia Southern R. R.Co., $38,000; total $4,485,
600.
104
REPORT OF THE SECRETARY OF THE TREASURY
The following statement shows the amount of obligations acquired under
section 207 of the Transportation Act of 1920, as amended, and held on June
30, 1947:
Obligations acquired under the provisions of sec. 207 of the Transportation Act, 1920,
and held as of June SO, 1947
Carrier
Principal
amount of
promissory
note or of
directly
held
security
Chicago, Milwaukee, St. Paul & Pacific
R. R. Co.
$3,207,000
Waterloo, Cedar Falls & Northern Ry. Col
Total
-
500,000
-
Collateral
(face
amount)
, Class of
collateral
or of directly held
security
5% noncumulative
preferred
stock of
carrier.
$625,000 Teraporary
general
mortgage,
7% bonds of
carrier.
Principal
In
default
Interest in
default
. $500,000
$604,931.50
600,000
604,931. 60
0)
3,707,000
» Securities directly held.
The following statement shows the amount of obligations acquired under section 210 and held on June 30, 1947:
Obligations held June SO, 1947, on account of loans to carriers under sec. 210 of the
Transportation Act, 1920, as amended, and the amount of principal and interest
in default
Loans outstanding 1
Carrier
Georgia & Florida Ry. (receiver) 2
Seaboard Air Line Ry. Co.2
Seaboard-Bay Line Co.2
Waterloo, Cedar Falls & Northern Ry. Co
Total
Principal in
default
Interest in
default
$792,000.00
$792,000.00
$871,600 00
14,438,827.01 14,438,827.01 12,026,307.49
347, 660. 22
347, 550. 22
1,260,000.00
1,260,000. 00 1,875,255. 71
--
-- 16,838,377. 23 16,838, 377. 23 14, 773,163. 20
1 Does not include loans amounting to $4,485,600, for which the assets of the carriers have been completely
liquidated, and which were insufficient to meet the claims, or loans amounting to $i;733,500 adjusted on
account of reorganizations.
2 By Executive order, the Reconstruction Finance Corporation has been designated to act in connection
with securities for these loans.
The following table shows the status of the securities received in reorganization
of railroads and held by the Treasury Department as of June 30, 1947*
REPORT OF THE SECRETARY OP THE TREASURY
105
Securities received in reorganization of railroads and held by the Treasury Department as of June SO, 1947
Carriers (old companies)
of
Amount of Amount
Interest Balance
securities Principal and
loan held
divi- held
received
payJune 30, In reorgan- ments
dends
June 30,
1946
received
1947
ization
Class of securities received
IQ reorganization from
new companies
Under sec. 210
Alabama, Tennessee & Northern
R. R. Corp.
$124,966
Fort Dodge, Des
Moines & Southern R. R. Co.
200,000
Minneapolis & St.
Louis R. R. Co.
1,382,000
$124,965
$65
$22,482
260,000
4,800
20, 962
20,962
$124, 900 Alabama, Tennessee & Northern
R. R. Co. (new
company), gold
mortgage Series
K.iViP/o income
bonds—
$124,900
260,000
Fort Dodge, Des
Moines & Southern Ry. Company:
Series B 4%
income mortgage bonds. 160,000
Common stock
10,000 shares
@$10
100,000
260,000
•
20, 962 Minneapolis & St,
Louis Ry. • Co.
common stock
8,384.80 shares
of 13,676.00
shares allocated
under sec. 210
@$2.50
a
20,962
•
Total
1, 706, 965
406, 927
66
48,244
405,862
Under sec. 207
Minneapolis & St.
Louis R. R. Co.
$1, 250,000
$13, 228
$13, 228
$13, 228 Minneapolis & St.
Louis Ry. Co.
common stock
5,291.20 shares
of 13,676.00
shares allocated
under sec. 207
@$2.60
. — $13,076
Federal savings and loan associations.—Under the act of June 13, 1933 (48
Stat. .133), as amended Aprh 27, 1934 (48 Stat. 645), the Secretary of the Treasury was authorized on behalf of the United States to subscribe for preferred shares
and full-paid income shares in Federal savings and loan associations upon request
of the Federal Home Loan Bank Board. An appropriation of $50,000,000 to
enable the Secretary of the Treasury to purchase such shares was reduced by an
allocation of $700,000 to the Federal Home Loan Bank Board. The details concerning the provisions of law under which these subscriptions were made and the
appropriations are contained in the Annual Report for 1940, pages 176 and 177.
The Home Owners' Loan Corporation also was authorized to purchase fullpaid 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 1947 the sum of $472,100.00 was received on account of
shares repaid, making the total shares repaid to June 30, 1947, $48,361,500.
The following state.ment shows the transactions in connection with the subscriptions by the Secretary of the' Treasury to preferred and full-paid income
shares in these associations.
106
REPORT OF THE SECRETARY OF THE TREASURY
Preferred and full-paid income shares of Federal savings and loan associations sub^
scribed hy the Secretary of the Treasury through J u n e SO, 1947, and dividends
received
[Par value of shares]
Preferred
shares
$637,800
T o t a l shares subscribed a n d paid
Shares held on J u n e .30, 1946
Less shares r e p a i d d u r i n g 1947
...
-_
-.
--
Shares held o n J u n e 30, 1947
F u l l - p a i d income shares
Total
$48, 662, 200 $49, 300, 000. 00
1,410, 600
472,100
1, 410, 600. 00
472,100.00
938, 600
938, 600. 00
D i v i d e n d s received on preferred a n d full-paid income shares:
T h r o u g h J u n e 30; 1946
D u r u i g 1947—..
10, 499, 565.95
27, 827. 50
10, 627, 393. 46
T h r o u g h J u n e 30j 1947
Obligations of foreign governments. World War I . — T h e United States received
during t h e year p a y m e n t s from t h e Government of Finland amounting to $424,331.98 on account of its indebtedness, $110,432.86 of which applied on principal
due a n d $313,899.12 on interest.
The following s t a t e m e n t s show the a m o u n t s which became due and payable
during t h e fiscal year 1947 a n d t h e cumulative a m o u n t s due a n d not paid as of
November 15, 1947.
Amounts due and payable, J u l y 1 through Dec. Sl, 1946, and J a n . 1 through
J u n e SO, 1947
F u n d i n g agreements
Country
Principal
Interest
Supplemental agreements
Total
J u l y 1 t h r o u g h D e c . 31, 1946
Belgium
1C zechoslo v a k i a
Estonia
Finland
-France
G e r m a n y ( A u s t r i a n Indebtedness) L - Great B r i t a i n
Greece..
Hungary
-..
Italy
Latvia
Lithuania.
Poland
Rumania
Yugoslavia
Total
46,000,000.00
570,000.00
^ 19,390.00
73,800. 00
2,055,000.00
-
Belgium . .
Czechoslovakia
_
Estonia
Finland.
France
--Germany (Austrian Indebtedness)'
Great B r i t a i n - - Greece.
Hungary.- --.
Italy-.
Latvia
Lithuania
PolandRumania..
Yugoslavia.Total
..--..
.
$178,000.00
93,000.00
48, 989,190. 00
$5,300,000.00
1,436,000. 00
63,775,516.30
882,626. 31
$4,158,000.00
2, 293, 742. 90
286, 265. 00
130,025.00
38, 522,866.00
93,302,327. 61
128, 964, 703.01
65,185.00
$4,158,000. 00
2, 293,742. 91
464, 265.00
269,479. 74
38, 522,865.00
121,960,000.00
787,920.00
52, 675.08
2,490,875.00
193,409.00
107,783. 69
5, 637,810. 00
907, 659. 81
154,062. 50
34,827. 24
128,956,330. 49
J a n . 1 t h r o u g h J u n e 30, 1947
648,000. 00
718,000.00
20,000,000. 00
$34,827. 24
75,950,000.00
217,920. 00
33,185.08
2,490,876.00
119, 609.00
107,783. 69
3, 582, 810. CO
907, 559. 81
154,062.50
75,950,000.00
217, 920.00
33,185.09
2,490,875.00
119,609.00
107,783. 71
3, 582, 810. 00
907, 559.81
154,062. 50
678,000.00
-
$4,158,000.00
2, 293,742. 91
286, 265.00
131,662. 50
38, 522,865.00
$34,827. 24
34,827. 24
177,980,347. 73
$9 458,000. 00
• 3,728,742.90
286,266.00
164, 852. 24
102,298,381.30
882,626.31
75, 950,000.00
796,920.00
33,185.09
22,490 875. 00
119,609.00
172,968. 71
3, 582,810.00
1, 455, 559. 81
872,062. 50
222,291,857.86
' The German Government was notified in 1938 that the Government of the United States will look to
the Gerraan Government for the discharge of this Indebtedness ofthe Government of Austria to the Government of the United States,
107
REPORT OF THE SECRETARY OF THE TREASURY
Total amounts due.and not paid as of Nov. 15, 1947
Funding agreements
Moratorium
agreements
annuities
Country
Principal
Belgium
....
Czechoslovakia
.Estonia..---:
Finland
_-.
France
Germany (Austrian Indebtedness)'
Great Britain
-Greece
--Hungary 2
"
Italy
Latvia..
...,
Lithuania
Poland
Rumania 3.
Yugoslavia..
.Total-
Interest
$114,042,000. 00
18,349,943. 24
8,547,055.00
$9,689, 077. 60
3,656, 255. 60
.•731,705.80
847, 503,030. 00
854,837, 831.39
7, 211, 249. 24
545,000, COO. 00 2,186,049,481.58
14, 699, 000.00
5,764,387. 50
892,876. 78
228 650.00
51,663,791. 74
239, lOo!000.00
3,453,130.
84
400.00
870,
3,062, 643. 31
775, 560.00
106,972.470.00
000.
00
24,902,
14, 491,896. 50
15,098, 560. 43
2,387,968. 78
7, 673, 000. 00
60, 937, 594.40
278,137.84
194,415,301.00
1,342,747.60
84, 511.60
17,923,117. 60
305,485. 20
273,665. 20
9,124, 594. 20
976,001. 60
$71,400,000.00
36,626,108. 90
2,131,000.01
1,820,563,359.97
Total
$195,131,077. 60
58, 632,307. 74
11,409,760.81
1,763, 278, 456. 79
7,489, 387. 08
2,924,464, 782. 68
21,806, 135.10
1, 206, 038.38
308, 676, 909. 34
4,629, 016. 04
4,111, 768. 61
140, 999, 064. 20 •
30, 565, 467. 63
10,060, 968.78
3,362,070, 574. 27 2.99y 737,196. 24 6,482, 361,129. 48
1 The German Government was notified in 1938 that the Government of the United States will look to
the German Government for the discharge of this indebtedness of the Government of Austria to the Government of the United States.
2 The Hungarian Government deposited with the foreign creditors' account at the Hungarian National
Bank an amount of Hungarian currency equivalent to the interest payments due from Dec. 16.1932, through
June 16, 1937. "" The debt funding and moratorium agreements with Hungary provide for payments in
dollars in the United States.
3 Excludes the amount of $100,000 which the Rumanian Government paid the U. S. Treasury on June -15,
1940, as "a token of its good faith and of its real desire to reach a new agreement" covering Rumanian indebtedness to the United States.
,
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 through November 15,
1947, appears in table 58.
Indebtedness of Germany.—The status of the World War I indebtedness of
Germany to the United States as of June 30, 1947, under the debt funding agreement of June 23, 1930, covering the cost of the American Army of Occupation
and the awards of the Mixed Claims Commission, United States and Germany,
is summarized in the following tables:
Amount of World War I indebtedness of Germany to the United States, June SO, 1947
Indebtedness
• as funded
Class
Army costs (reichsmarks)
Mixed claims (reichsmarks)
-
Total indebtedness, June 30,
1947
Principal
i
Interest accrued and
unpaid
1,048,100, 000 1, 084, 990. 561. 60 ' 997,500,000 1 87, 490, 661. 50
2,121, 600, 000 2,287, 350, 000. 00 2, 040, 000, 000 247, 350, 000. 00
3,169,700,000 2 3.372,340,651.50 3, 037, 500,000 334,840, 551. 60
Total (reichsmarks)
Total (in dollars, at 40.33 cents to the
reichsmark)-$1, 278, 340, 010 $1, 360, 064, 944.42 $1,225, 023, 750 $136, 041,194.42
1 Includes interest accrued under unpaid moratorium agreement aimuities.
2 Includes 4,027,611.95 reichsmarks deposited by the German Government in the Konversionskasse fiir
Deutsche Auslandsschulden and not paid to th6 United States in dollars as required by the debt and raoratoriura agreements.
108
REPORT OF THE SECRETARY OF THE TREASURY
Payments received from Germany through June SO, 1947
Class
Total payments
received through
June 30, 1947
Army costs (reichsmarks)...
Mixed claims (reichsmarks)
51, 466,406.26
87, 210, 000. 00
60,600,000.00
81,600,000.00
856,406.25
6,610,000.00
138, 666, 406. 25
; $33,687,809.69
132,200, 000. 00
$31, 639, 695.84
6, 466, 406.26
$2,048,213.86
Total (reichsmarks)
Total (in dollars) - .
—.
-.
-..
"Payments of
principal
Payments of
interest
Amounts not paid by Germany according to contract terms, June SO, 1947
Funding agreement
Moratorium
agreement
Date duo
Principal
Interest
Total to June 30, 1946 (reichsmarks)—
Sept. 30, 1946 (reichsmarks)
_.
Mar. 31,1947 (reichsmarks)
908,200, 000
33,060,000
33,060,000
Total (reichsmarks)
Total (in dollars, at 40.33 cents to the
reichsmark)
$392, 936,190
974, 300, 000
Total
286, 566,-906.25
21,127,187. 50
21.866,468.75
30,580,989.00
1 1, 225, 346, 895.25
54,177,187. 50
54, 916, 468. 75
329, 569, 562. 50
30, 580. 989. 00
1, 334,440, 561. 60
$132, 911, 371. 56 $12,333,312.86
$538,179, 874.42
1 Includes 4,027,611.96 reichsmarks deposited bythe German Government in the Konversionskasse fiir
Deutsche Auslandsschulden and not paid to the United States in dollars as required by the debt and raoratorium agreements.
FOREIGN
CURRENCIES
At various times since May 1943, accounts have been established in the name
of the Treasurer of the United States with various foreign banks for the purpose
of depositing therein foreign currencies representing the proceeds from the sale of
lend-lease goods or disposal of surplus property and collections of United States
departments and agencies. These accounts are maintained in terms of foreign
currencies on the books of the Treasurer of the United States on a custodial basis
without responsibility as to the ultimate amourit of dollars realized upon disposition of the foreign currencies. The establishment of such accounts was to
provide a central fiscal control over the custody of excess foreign currencies and
the disposal of such currencies on the most favorable basis possible.
Up to June 30, 1947, the foreign currencies deposited were equivalent to approximately $79,395,826, Disposals amounted to $56,582,489. The remaining foreign currencies valued at approximately $22,813,337 on the basis of exchange
rates as of June 30, 1947, comprise the following:
Currency
Indian rupees
Iranian rials
Palestine pounds-.
British West African pounds
Fcrvntian nonnds
Belgian francs
-
Approximate
dollar value
$14,766,313
2,832,337
1,346,855
.1,100,389
1,306,416
488,441
Approximate
dollar value
Currency
Iraqi dinars
German marks
-----South African pounds
All others..
.. Total-
--_
$466,166
255,492
118,513
132,415
22,813,337
MiPORT 6 F fJaJE SECRETARY OF T H E TREASURY
109
Foreign currency accounts have been opened with banks in 24 different countries. However, as a result of t h e provisions of Treasury D e p a r t m e n t Circular
N o . 799, December 27, 1946, ''Regulations for t h e Administration of Foreign
Currencies a n d Credits under Dispositions of Surplus P r o p e r t y Abroad and liCndLease Settlements," t h e number of Treasurer's foreign currency accounts is expected to increase.
FISCAL RELATIONSHIPS WITH THE P H I L I P P I N E ISLANDS
Deposits of the Philippine Cover nment.^-The a u t h o r i t y of t h e Secretary of t h e
Treasury, contained in the act of June 11, 1934 (48 Stat. 929), to accept deposits
of public moneys of t h e Philippine Government a n d to pay interest thereon a t
not in. excess of 2 percent per a n n u m , was continued to July 1, 1951, by Public
Law 654, approved August 7, 1946.
The interest-bearing accounts are being carried currently under this a u t h o r i t y :
An account .maintained a t $55,000,000 since December 10, 1934, bearing 2 percent
interest; anci an account of $100,000,000 established M a r c h 8, 1946, bearing 1
percent interest. Two other accounts previously maintained have now been
closed. One of these covered coconut oil excise tax collections prior to J a n u a r y
1, 1939, a t 2 percent interest, and t h e other .covered similar collections after
J a n u a r y 1, 1939, a t 1 percent interest.
Bonds of the Philippines.—The Philippine Independence Act, as amended,
required the destruction of bonds of t h e Philippines, its provinces, cities, and
municipalities issued prior to M a y 1, 1934, which were held as investments in
sinking funds of pre-1934 bond issues. Tt also required t h a t all other assets of
such sinking funds, together with t h e proceeds of t h e supplementary sinking fund
maintained in t h e United States Treasury for such bonds, should be deposited
in a special t r u s t account to be maintained by the Secretary of the Treasury for
t h e p a y m e n t of such bonds.
Arrangements to carry out t h e physical delivery of securities were delayed as
a result of t h e war with J a p a n a n d t h e necessity of reconciling Philippine records
after reoccupation of Manila. As of July 6, 1946, t h e proceeds of t h e supplem e n t a r y sinking fund previously-maintained by t h e Secretary of the Treasury
for t h e p a y m e n t of such bonds were transferred to a new special t r u s t account for
t h e p a y m e n t of pre-1934 Philippine securities. Also, t h e cash assets of various
Philippine Government sinking funds for pre-1934 bonds amounting to $13,141.85
were paid by t h e Philippine Government into t h e special t r u s t account.
T h e Secretary of t h e Treasury has received from t h e Republic of the Philippines
$6,269,750 in United States Government securities for account of t h e special t r u s t
account a n d $13,150,500 in pre-1934 Philippine bonds for destruction. These
securities represented investments of Philippine sinking funds for pre-1934 bond
issues. As provided in t h e act, t h e pre-1934 Philippine bonds were destroyed.
Until t h e balance in the special t r u s t account is sufficient to enable the Secretary
of t h e Treasury to pay interest a n d principal on all outstanding Philippine Gove r n m e n t bonds issued prior to M a y 1, 1934, t h e act provides t h a t the Philippine
Government will provide annually t h e funds necessary for the p a y m e n t of interest
and principal on such bonds.
110
REPORT OF THE SECRETARY OF THE TREASURY
T h e following s t a t e m e n t s show receipts and expenditures and fund assets as of
J u n e 30, 1947:
Special trust account for the payment of bonds of the Philippines, its provinces,
cities, and municipalities, issued prior to May 1, 19S4, under authority of acts
of Congress
I.
R E C E I P T S AND
EXPENDITURES
Receipts:
•
.
Taxes on exports
Interest a n d profits on investments
Cash p a y m e n t by Philippine Government
$1, 586, 135, 92
232, 437. 70
13, 141. 85
Total receipts.
Expenditures. . .
,
Balance in fund
1, 831, 715. 47
IL
FUND
Investments:
Philippine Government b o n d s :
4^2% due Dec. 1, 1950-.__:
5 % due Feb. 1, 1952
4/2% due July 1, 1952
4/2% due July 15, 1952
5 % due April 1, 1955
4/2% due M a y 1, 1957
'
4 H % due July 1, 1957
4/2% due M a r c h 1, 1958
.
4>^% due April 1, 1958-__-_.
• 4M% due April 1, 1959
4M% due Sept. 15, 1959
4/2% due Oct. 1, 1959
4 H % due Oct. 15, 1959
ASSETS
'
•
-
.
Total
^
Cash balance with Treasurer of the United States
Total
1, 831, 715, 47
—
.
Face amount
$33,000
32,000
258,000
373,000
21,000
5,000
64, 000
43,000
36, 000
.
70, 000
_-_
41, 000
19, 000
6, 000
Principal cost
$34,594.56
34,218.57
267, 164. 81
390,528.26
19, 877. 50
5,596.48
71, 565. 41
48,578. 11
40, 664. 32
75, 302. 30
46, 918. 64
21, 730. 69
6, 691. 16
1,001,000
1,063,430. 81
768, 284. 66
1, 831, 715. 47
Settlement of prewar depositary account.—In connection with the reconstruction
of t h e account bf t h e Treasurer of t h e United States with t h e Philippine Treasury,
additional information has been obtained which indicates a t e n t a t i v e balance of
$432,618.45 in favor of t h e Philippine Treasury, based on records of t h e Treasurer
of t h e Philippine Islands, as audited by t h e General Auditing Office of t h e Philippine Government. This a m o u n t is $93,086.64 less t h a n t h e t e n t a t i v e a m o u n t
of $525,705.09 previously determined due from records available to t h e Treasury
D e p a r t m e n t . T h e m a t t e r is riow before the Comptroller General for consideration.
I N T E R N A T I O N A L C L A I M S OF A M E R I C A N N A T I O N A L S , E T C .
Expropriation of petroleum properties by Mexico.—In accordance with t h e
agreement between t h e Government of Mexico a n d the Government of t h e
United States, t h e Government of Mexico has agreed to pay a t o t a l of
$29,137,700.84 for distribution among 13 American oil companies whose properties
and rights had been affected by expropriation by t h e Mexican G o v e m m e n t .
T h e Secretar}^ of State has certified to t h e Secretary of t h e Treasury for p a y m e n t the
claims of twelve companies aggregating $23,592,101, T h e claim of the remaining
company in t h e a m o u n t of $403,890 has n o t yet been certified for p a y m e n t . T h e
balance of $5,141,709.84 represents interest a t 3 percent from March 18, 1938.
To date, $24,630,702:83 in principal and interest has been distributed to claimants.
REPORT OF THE SECRETARY OF THE TREASURY
111
Settlement of Mexican Claims Act,of 1942.—In accordance with the provisions
of t h e Settlement of Mexican Claims Act of 1942, as amended, t h e Secretary of t h e
Treasury authorized distributions to J u n e 30, 1947, totaling 46.5 percent of the
principal a m o u n t of awards and appraisals certified for p a y m e n t b y t h e Secretary
of State or t h e American Mexican Claims Conimission. T h e s t a t u s of compensation for claims handled under t h e convention between, t h e United States and
Mexico d a t e d November 19, 1941, is set forth in t h e following t a b l e :
Amounts paid into the fund as of J u n e SO, 1947
Amount
Under t h e agrarian claims agreement of 1938
$3, 000, 000.
Paid on exchange of ratifications of the a g r e e m e n t ,
3, 000, 000.
Annual installments due from Government of Mexico through
November 1946
12, 500,000,
Appropriated by t h e Government of the United States covering
a m o u n t of awards a n d appraisals m a d e on behalf of Mexican
nationals
.___._
533, 658.
Total
-
00
00
00
95
19, 033, 658. 95
Claims certified for payment
By the Secretary of State:
Decisions rendered by the General Claims Commission^
Appraisals agreed upon by t h e Commissioners designated by
Governments of t h e United States a n d Mexico, p u r s u a n t to
, the general claims protocol between t h e United States a n d
Mexico signed Apr. 24, 1934
Total
$201, 461, 08
. .
2, 599, 166. 10
2, 800, 627, 18
By the American Mexican Claims Commission:
Decisions under t h e provisions of sees. 4 (b), 4 (c), a n d 5 (d) of t h e
act
..
. 37, 948, 200. 05
G r a n d t o t a l of claims certified
40, 748, 827, 23
Status of the fund as of J u n e SO, 1947
Credits:
P a y m e n t s received from Government of Mexico under
agreement of Nov. 19, 1941
$18, 500, 000. 00
Appropriation m a d e b y Government of t h e United States
on account of awards a n d appraisals made on behalf of
Mexican nationals
533, 658. 95
Total.
Less a m o u n t paid to American claimants:
Fiscal year 1943
.
Fiscal year 1944
Fiscal year 1945
Fiscar year 1946
F i s c a l y e a r 1947
19,033, 658. 95
$637, 036. 24
6,333,636.13
1, 443, 226. 94
4, 993, 915. 36
3,076,040. 35
.
16,483,855:02
Unexpended balance to t h e credit of t h e Chief Disbursing
Officer J u n e 30, 1947_._
2,549,803,93
Of t h e unexpended balance of $2,549,803.93, the a m o u n t of $2,464,349.64 is
obligated for p a y m e n t within the distributions t o t a h n g 46,5 percent authorized
to date. T h e balance of $85,454.29. is available for further distribution on t h e
principal a m o u n t s of awards a n d appraisals.
112
REPORT OF THE" SECRETARY OF THE TREASURY
Special Mexican Claims Commission, United States and Mexico.-^The following
table sets forth the status of claims of American nationals against Mexico taken
up under the convention between the United States and Mexico dated April 24,
1934:
Statement of awards made by Special Mexican Claims Commission, United States
and Mexico, as of June SO, 1947
Amount of final awards to claimants after application of sec. 4 of
Amount
the act approved Apr. 10, 1935
$5, 210, 108, 92
Amount available for distribution to claimants out of $200,581,70
interest collected from Mexico account of interest on deferred,
payments
.
196, 943. 61
5,407,052. 53
Amount received from Government of Mexico:
•
Through June 30, 1944, $5,000,000 principal
and $196,101.50 interest
$5, 196, 101, 50
Jan. 5, 1945, $448,020.14 principal and
$4,480.20 interest
452,500.34
Total through June 30, 1947
.
Less amount transferred to. miscellaneous receipts to cover
the expenses of the Commission
^..
Available for payment to claimants
Amount paid to claimants:
Fiscal year 1939
Fiscal year 1940
Fiscal year 1941
.
Fiscal year 1942
.
Fiscal year 1943
Fiscal year 1944
Fiscal year 1945
.
Fiscal year 1946
Fiscal year 1947
Total through June 30, 1947
5, 648, 601. 84
241, 549. 31
5, 407, 052. 53
.._ $2, 087, 193. 47
678, 717. 90
537, 124. 56
_:___
516, 380. 29
505, 672. 15
484, 399. 06
358,567.76
138,293.74
5, 086. 92
.
Balance due claimants, for which vouchers have not been received
.
5, 311,435. 85
95, 616. 68
Settlement of War Claims Act of 1928; World War I claims.—The Settlement of
War Claims Act of 1928 (45 Stat. 254) authorized the Secretary of the Treasury
tp make payments on account of claims arising out of World War I: (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. For a more^detailed discussion of these awards and payments
see pages 123 to 128 of the annual report for 1941.
Public Law 375, approved August 6, 1947, amends the Settlement of War
Claims Act of 1928 by changing the order of priority of payment to make possible
a further distribution to the holders of Class III awards of the Mixed Claims
Commission. Payment under the act is to be made from funds to be certified
by the Office of Alien Property for deposit in the German special deposit account.
Payment will be on account of interest accrued on awards in excess of $100,000,
but for the purpose of accumulating further interest, the principal amount of
each award shall be reduced by the amount paid.
The following table sets forth the status of awards of the Mixed Claims Commission.
REPORT OF .THE SECRETARY OF THE TREASURY
113
Status of awards of Mixed Claims Commission in.favor of American nationals as of
Sept. SO, 1947^
Total
number of
awards
Awards certified
1. Amonnt dnft on acconnt: Principal of awards
Less amounts paid Allen Property Custodian and others
7,026
,
$181, 698, 235. 30
187,226.86
181, 611,008.45
Interest to Jan. 1,1928, at rates specified in awards
Interest thereon to date of payment or to Sept. 30,1947, if unpaid, at 6
percent per annum as specified in the Settlement of War Claims Act
of 1928
Total dnft claimants
Total amount
81,466.086.36
, 127,981,846.33
_
390 967,940 14
2. Payment made on account to Sept. 30,1947:
Principal of awards
.
Interest to Jan. 1, 1928, at rates specified in awards
Interest at 6 percent per annum from Jan. 1,1928, to date of payment as
directed by the Settlement of War Claims Act of 1928
-..
6,671
162,406,977. 39
8,938, 824.97
2, 281, 676.84
Tota J payments to Sept. 30, 1947
Less one-half of 1 percent deduction from each payment. ,
163, 627, 378. 20
818,137.37
Net payments made to claimants to Sept. 30,1947 .
162,809, 240.83
3. Balance due on account:
Principal of awards
.--Interest to Jan. 1, 1928, at rates specified in awards
Accrued interest at 5 percent per annum from Jan. 1, 1928, to- Sept. 30,
1947, on unpaid balance of total amount piayable as of Jan. 1,1928.'--Balance due claimants as of Sept. 30,1947
_- _ .
_ _
365
101, 622, 748. 31
7,644.14
125,700, 269.49
227,330,561.94
1 Includes payments on account of Private Law 509, approved July 19,1940.
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 during World War I.
The Treasury has made payment up to June 30, 1935, 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 subsequent to
that date.
114
REPORT OF T H E SECRETARY OF T H E TREASURY
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, 1947:
Status of awards of War Claims Arbiter in favor of German nationals as of Sept. SO,
1947
Total
(315 awards)
Awards certified
Patents and
radio station
(288 awards)
Ships
(27 awards)
1. Amount due on account:
Principal of awards including Interest to Jan. 1,1929-. $86,738, 320.83 i$74,252,933.00 $12,486, 387. 83
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,
45, 342, 441. 83 38, 665,895. 68 6, 676,646. 26
1947
132,080,762.66
Total due claimants.
2. Payments made on account to Sept. 30, 1947:
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,
1947
Total payments to Sept. 30, 1947 .
- -
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 remBlning unpaid to
Sept. 30,1947
--Balance due clairaants
112,918,828. 68 19,161,934.08
43,368,899. 24
37,126, 206. 21
6,242, 694.03
43, 368,899. 24
37,126,205. 21
6,242, 694. 03
43,369,421. 59
37,126, 727. 79
6,242,693 80
45,342,44L83
38, 666, 895. 68
6, 676, 646. 25
88,711,863.42
76, 792, 623. 37 12, 919, 240.05
1 Includes awards amounting to $522.58 to members of the former ruling family of German (sec. 3 (j) Settlement of War Claims Act of 1928, as amended).
The awards made 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.
The following statement shows the status of the German special deposit account, as of September 30, 1947:
German special deposit account as of September SO, 1947
Total receipts i_
RECEIPTS
-
Awards of the Mixed Clairas Commission:
Under agreement of Aug. 10, 1922
Underagreementof Dec. 31,1928-Private Law 609
-
.---- $207,388,818.62
PAYMENTS
--
-
$154,960,177.09
7,684,835.94
164,227.80
Awards of W ar Claims Arbiter:
Forshlps
For patents and one radio station. One-half of 1 percent deducted from Mixed Claims payments covered Into Treasury
One-half of 1 percent deducted from Mixed Claims payments on account of awards entered under agreeraent of
Dec. 31,1928 (act of June 21,1930), and paid to Gerraany
($14,466.95 withheld but not paid)
..:...-.
One-half of 1 percent deducted' on account of Private Law
609 withheld and covered into the Treasury
1
Advances to special fund, expenses of adrainistration of the
Settleraent of War Clairas Act of 1928 (OflSce of the
Secretary of the Treasury)-.Expenses of administration, War Claims Arbiter account
of German nationals.Total payments
..^...
. Cash balancein German special deposit account.
1 For details, see the 1945 annual report, p, 150.
$162,809, 240. 83
37,126,205.21
6,242,694.03
43,368,899.24
778,696.07
24,150.09
..-:
°
-
.
826.26
80,176.00
113,624.20
-
207,175,609.69
-
213,208.93
REPORT OF THE SECRETARY OF THE TREASURY
115
T h e awards entered by t h e Tripartite Claims Commission against Hungary, in
favor of American nationals, a m o u n t e d to $199,975.57. During t h e fiscal year
1947, no p a y m e n t s were made on account of such awards. As of June 30, 1947,
awards aggregating $7,257.35 h a d not been paid because claimants h a d not filed
applications as required b y law.
Claims of American nationals against Turkey.—The Special Claims Commission,
United States a n d Turkey, established under t h e agreement of December 24, 1923
(see page 196 of t h e annual report for 1940 for further details of this agreement),
m a d e awards in 33 cases aggregating $899,338.09, which were reduced b y
$70,891.06 on account of expenses incurred by t h e United States, leaving net
awards a m o u n t i n g to $828,447,03 payable from funds received from t h e Republic
of T u r k e y , Under t h e provisions of t h e act of F e b r u a r y 27, 1896 (29 Stat. 32),
these awards were certified on August 19, 1937, by t h e Secretary of State to
t h e Secretary of t h e Treasury for p a y m e n t . During t h e fiscal yeaf 1945 the final
installment of p a y m e n t was received from t h e Republic of Turkey, a n d made
available for p a y m e n t to t h e claimants.
As of J u n e ,30, 1947, $822,503.56 h a d been paid to claimants, leaving a balance
of $5,943.47 against which applications for p a y m e n t have not been received.
A P P R A I S A L S OF COMMODITY C R E D I T CORPORATION
Appraisal of assets and liabilities of the Commodity Credit Corporation.—The act
approved M a r c h 8, 1938 (52 Stat, 107), as amended by the act approved April
12, 1945 (59 Stat. 50), requires t h e Secretary of t h e Treasury to make an appraisal
as of J u n e 30 of each year of t h e assets a n d liabilities of t h e Commodity Credit
Corporation to determine the net worth of t h e Corporation. I n t h e event t h a t
a n y such appraisal shall establish t h a t t h e net w o r t h of t h e Corporation is less
t h a n $100,000,000, t h e Secretary of t h e Treasury is t o submit an estimate and
recommend t h a t t h e Congress appropriate t h e funds necessary to restore t h e capital impairment. I n t h e event t h a t any appraisal shall establish t h a t t h e net
w o r t h of t h e Corporation is in excess of $100,000,000, such excess shall be deposited
b y t h e Corporation in t h e Treasury, as miscellaneous receipts. T h e act approved
F e b r u a r y 28, 1944 (58 Stat. 105), requires the Comptroller General to make an
annual audit of t h e financial transactions of t h e Corporation beginning with t h e
fiscal year 1945 a n d to furnish a copy of each audit report to t h e Secretary of t h e
Treasury for consideration in appraising t h e assets a n d liabilities for determining
t h e net worth of t h e Corporation in accordance with t h e provisions.of t h e act of
March 8, 1938, as amended.
T h e appraisal for t h e fiscal year ended J u n e 30, 1946, revealed a capital impairm e n t of $641,832,080,64, Appropriations made directly to t h e Treasury for t h e
restoration of t h e Corporation's impaired capital t h r o u g h J u n e 30, 1944, totaled
$472,287,649.33, and surpluses covered into t h e Treasury a m o u n t e d to
$71,572,244,69, Subsequent to June 30, 1944, t h e Congress effected restorations
of impaired capital by authorizing a n d directing t h e Secretary of t h e Treasury to
discharge indebtedness of t h e Corporation to t h e Treasury b y canceling t h e Corporation's notes for an a m o u n t equivalent to t h e capital impairment.
T h e p a y m e n t s a n d cancellations of corporate notes are as follows:
Appropriations:
Act of J u n e 25, 1938 (appraisal as of Mar. 31, 1938, H.
Doc. 670, 75th Cong.)
.
$94, 285, 404. 73
Act of Aug. 9, 1939 (appraisal as of Mar. 31, 1939, H .
Doc, 317, 76th Cong.)__
119, 599, 918. 05
Act of July 3, 1941 (appraisal as of Mar. 31, 1941, H,
.
Doc, 248, 77th Cong.)
1, 637, 445. 51
Act of Apr. 25, 1945 (appraisal as of Mar. 31, 1944, H.
"
.
Doc. 48, 79th Cong.)
i 256, 764, 88L 04
T o t a l appropriations
.
.
._
472, 287, 649. 33
1 Includes $39,436,884.93 appropriated for capital impairment, applicable to Mar. 31, 1943, appraisal.
764788—48
9
116
REPORT OF THE SECRETARY OF THE TREASURY
Cancellation of obligations of the Corporation
held by the Treasury:
Act of July 20, 1946 (appraisal as of
June 30, 1945, H. Doc. 54, 79th
Cong.)_.__
$921, 456, 561, 00
Act of May 26, 1947 (appraisal as of
June 30, 1946, H. Doc. 186, 80th
Cong.)
641, 832, 080. 64 $1, 563, 288, 641. 64
Less amount returned to Treasury:
Appraisal as of Mar. 31, 1940
Appraisal as of Mar. 31, 1942
2, 035, 576, 290. 97
—
43, 756, 731. 01
27, 815, 513. 68
Net payments to Corporation to restore impairment
of capital.:^
71, 572, 244, 69
1, 964, 004, 046. 28
LIQUIDATION OF FEDERAL AGENCIES
Lend-lease fiscal operations.—Pursuant to Executive Order No. 9726, dated
May 17, 1946, the Treasury Department assumed control over fiscal records
on lend-lease and reciprocal aid, effective at the close of business on May 31,
1946, Two major operations are involved in the work taken over: (1) Accounting and reporting on appropriations, allocations, and transfers to foreign^ governments, and (2) billing and collecting for reimbursable supplies and services
furnished to foreign governments.
In most lend-lease transactions the United States Government furnished defense
articles or services required for the successful prosecution of the war, with the
understanding that all articles not destroyed, lost, or consumed are subject to
recapture by the United States. In the language of the Lend-Lease Act, ''the
benefit to the United States may be payment or repayment in kind, or property
or any other direct or indirect benefit which the President,deems satisfactory."
In addition, there were agreements to furnish articles through lend-lease procurement facilities. Financial arrangements required (1) payment in advance
of procurement, (2) immediate payment upon rendition of a bill, or (3) credit
arrangements. In the first instance, lend-lease facilities were made available
only where procurement through normal commercial channels was not feasible.
In the second instance, foreign governments were permitted to submit lend-lease'
requisitions calling for cash payment with the understanding that immediate
cash settlement would be made after delivery on the basis of actual billings.
In cases involving credit arrangements, agreements of several types were
concluded with foreign governments. Treaty agreements made early in the war
with 18 American republics provided that repayment for a certain percentage of
the cost of defense articles and services supplied under the Lend-Lease Act would
be made over a period of years according to the financial capacity of each country.
A second type of agreement was concluded with certain governments providing
that articles and services contracted for prior to the cessation of hostilities would
be delivered and the foreign governments would pay for.such articles and services
over a thirtj^-year period with interest.
In some cases, final settlements were agreed to, providing, in most cases, for
interest and principal payments over a period of years. Some of these final
settlements provided offset of debts or claims in specified categories with or
without transfer of funds. Such agreements may cover lend-lease transactions
' only or may include sales of surplus materials and other types of financial
transactions.
.
117
REPORT OF THE SECRETARY OF THE TREASURY
' Under the Lend-Lease Act, defense articles and services under all agreements
were provided to the amount of $50,377,618,339.74 between March 11, 1941,
and March 31, 1947. Reverse lend-lease, consisting of articles and services
furnished by foreign governments to the United States up to September 2, 1945,
amounted to $7,819,322,790.90. Between March 11, 1941, and June 30, 1947,
funds received from foreign governments amounted to $1,654,930;573.96. Of
this amount a total of $1,149,722,632.10 has been covered into the United States
Treasury as miscellaneous receipts.
'
,
Other war agencies.—Under Executive Order 9471 of August 25, 1944, the
Division of Central Administrative Services of the Office for Emergency Management was abolished and its functions were transferred to the various constituent
agencies of that office. On December 1, 1944, the Bureau of Accounts took over
the liquidation of the residual affairs of the Division. The work of liquidation
relates mainly to winding up fiscal matters, including such action as examining
and certifying outstanding obligations for payment, makings administrative
recommendations on claims under expired appropriations, answering exceptions
taken by the General Accounting Office to prior payments, collecting moneys due
the United States, closing out appropriation and fund accounts, and preparing
permanent records for transfer to the National Archives. Aside from the fiscal
work certain other incidental functions are performed, such as disposing of
surplus property, placing or separating excess personnel, and handling general
administrative matters arising out of prior transactions.
Similar arrangements were effected by the President for other war agencies
as fohows:
Name of agency .
Oflice of Civilian Defense
War Refugee Board
---Office of Censorship . . . .
OflQce of War Information
•
Committee on Fair Employment Practice
Price Decontrol Board
Authority for liquidation
-- Executive Order 9562.1
-.- Executive Order 9614
Executive Order 9631Executive Order 9608...
President's letter of May 18, 1946
President's letter of June 30,1947
Liquidation
commenced
July
Sept.
Nov.
.Ian.
May
June
1,1945
16,1945
16 1945
1,1946
18 1946
30,1947
In anticipation of the ultimate liquidation of the Office of Defense Transportation created by Executive Order 8989 of December 18, 1941, arrangements were
made whereby the Bureau of Accounts undertook to perform the fiscal functions
required for that agency on a reimbursable basis commencing as of January 1,
1946. Such services include the maintenance of appropriation and fund accounts,
the performance of incidental audit work, preparation of pay rolls, and the
preparation of financial reports.
Federal control of railroads.—The Treasury continued during the fiscal year 1947
the liquidation of matters growing out of the control of the American transportation system which was exercised through the United States Railroad Administration during the period from December 28, 1917, to February 29, 1920.
Total receipts on account of the Federal control of railroads for the fiscal year
1947 were $4,111.06, and expenditures were $3,220.06, resulting in net receipts of
$891,00, as compared with net receipts of $1,060.84 for 1946. During 1947, there
"was transferred from the appropriation to the surplus fund of the Treasury the
sum of $78,000.
At the close "of business on June 30, 1947, the cash and appropriation balance
aggregated $26,615.43 as compared with $103,724.43 at the close of 1946,
118
REPORT OF T H E SECRETARY OF T H E TREASURY
A s t a t e m e n t of receipts and expenditures follows:
Receipts and expenditures i n connection with Federal control of railroads, fiscal
years 1946 and 1947
1946
Balances at beginning of year:
Secretary of the Treasury, special deposit account.
Unrequisitioned appropriation balances:
Federal control transportation systeihs
Total balances
$29, 431. 69
3,968. 40
107.10
69.80
42. 43
Total balances and receipts..
Expenditures:
Employees' compensation liability awards
Claims for Liberty bond subscription refunds
Payments for employees' bond purchases
Payments to collector of internal revenue of Federal tax withheld from salaries of Federal employees.. Treasury Department-.
Administrative expenses (pay rolls)
To tal expenditures
Transfers from appropriation account to surplus fund..
Balances at end of year:
Secretary of the Treasury, special deposit accountFederal control of transportation systems
72.86
4,140. 43
4,111.06
106, 804. 02
107,836. 49
782.14
65.00
37.50
780. 00
5.00
89.60
2.115.36
78.20
2, 356.86
3, 220. 06
78, 000.00
3,079. 59
26, 524.13
77, 200. 30
-
Total expenditures and balances
$103, 724. 43
3, 968. 40
22.50
.
-
77, 200. 30
$102, 663. 59
Receipts:
Dividends collected on common stock of Mianeapolis & St. Louis Ry. (Jo
Employees' bond purchase deductions
Federal tax withheld from salaries of Federal employees. Treasury Department
^.
Collection of miscellaneous claims referred to Washington from field, including transportation
charges,, undercharges, etc
Total balances
$26, 524.13
73, 231.90
-
Total receipts---
1947
-..I
SUPERVISION OF CORPORATE
23,446. 73
3,168. 70
103, 724. 43
26,615.43
106,804.02
107,835. 49
SURETIES
T h e Secretary of t h e Treasury, under t h e act of Congress approved August 13,
1894 (28 Stat, 279), as amended by t h e act approved M a r c h 23, 1910 (36 S t a t .
241), issues t h r o u g h t h e Section of Surety Bonds, Bureau of Accounts, certificates of a u t h o r i t y to corporate surety companies t o qualify as acceptable sureties
on bonds a n d other obligations in favor of t h e United States.
On J u n e 30, 1947, t h e r e were 91 companies holding certificates of a u t h o r i t y
qualifying t h e m as sole sureties on recognizances, stipulations, bonds, a n d undertakings p e r m i t t e d or required by t h ^ laws of t h e United States, t o be given with
one or more sureties. There were also 8 companies holding certificates of author*,
i t y authorizing t h e m t o act only as reinsurers on bonds in favor of t h e United
States. D u r i n g t h e year one certificate of a u t h o r i t y was issued t o a company
qualifying it as sole surety on bonds in favor bf t h e United States, a n d one certificate of a u t h o r i t y was issued t o a company qualifying it t o act as a reinsuring
company only.
During t h e year 50,752 bonds a n d consent agreements were examined by t h e
Section of Surety Bonds a n d approved as t o corporate surety.
FINANCIAL
REPORTING
I n accordance w i t h t h e requiremerits of title 5, section 264, United States
Code, a Combined S t a t e m e n t of Receipts, Expenditures, a n d Balances of t h e
United States Government is t r a n s m i t t e d t o t h e Congress each year, designating
t h e a m o u n t s of receipts, whenever practicable, by ports, districts, a n d States,
a n d t h e expenditures by each separate head of appropriation. This report,
which is required t o be s u b m i t t e d t o t h e Congress on t h e first day of t h e regular
session in each year, is also printed for public distribution.
REPORT OF THE SECRETARY C)F THE TREASURY
119
Other financial s t a t e m e n t s pertaining to t h e receipts, appropriations, a n d
expenditures of t h e Government a n d its various agencies are prepared periodically during t h e year for inclusion in t h e daily Treasury s t a t e m e n t a n d t h e
m o n t h l y Treasury Buhetin.
A s u m m a r y report is compiled montlily from financial d a t a s u b m i t t e d by t h e
d e p a r t m e n t s a n d agencies under Budget-Treasury Regulation No. 1 (Executive
Order 8512, as amended). This s u m m a r y report consists of a series of tables
showing t h e current status of t h e appropriations a n d contract authorizations
available t o each agency of t h e Government during t h e current fiscal year.
Quarterly statements of assets, liabilities, a n d capital of Government corporations a n d credit agencies, a n d other d a t a relating t o t h e financial condition of
such corporations a n d credit agencies are compiled from financial d a t a s u b m i t t e d
by t h e corporations and credit agencies under Budget-Treasury Regulation N o . 3
(Executive Order 8512, as amended) for inclusion in published reports. A s t a t e ment of guaranteed a n d contingent liabilities of t h e United States is also p u b lished in t h e daily Treasury s t a t e m e n t on t h e first day of each month. These
s t a t e m e n t s , as of J u n e 30, 1947, wih be found as tables 21, 22, a n d 83,
OTHER FUNCTIONS
Refunds under Renegotiation Act.—The Third Deficiency Appropriation Act,
1946, approved July 23, 1946, appropriated $15,000,000 together with t h e unexpended balances of funds previously appropriated to enable t h e Secretary of t h e
Treasury to m a k e t h e refunds as provided by section 403 of t h e Renegotiation
Act, a n d to refund a n y a m o u n t finally determined to have been collected erroneously by t h e United States. In accordance with t h e act, refunds are paid by
t h e Secretary of t h e Treasury on t h e basis of certificates made by t h e War Cont r a c t s Price Adjustment Board. Through J u n e 30, 1947, 77 claims have been
paid, aggregating $7,458,128,42.
Substitute check procedure.—Public Law 243, approved December 3, 1945, a n d
effective December 1, 1945, authorized t h e Secretary of t h e Treasury t o issue
substitute checks from a substitute check account to replace lost, stolen, a n d
mutilated checks drawn on t h e Treasurer of t h e United States. Regulations,
procedure, a n d instructions pertaining t o this law were placed into effect in
J a n u a r y 1946, Under this legislation it has been possible t o speed up a n d simplify
t h e settlement of claims for lost checks. The following is a report of checks
issued durhig t h e fiscal years 1946 a n d 1947:
Fiscal year
1946
1947
-
-
.--
..'.
Number of
Number of
duplicate
substitute
checks Issued checks issued
.(Prior law)
(P. L. 243)
28,856
31,719
48,252
Outstanding liabilities.—Under section 21 of t h e P e r m a n e n t Appropriation
Repeal Act, approved J u n e 26, 1934 (48 Stat. 1235), checks, with certain exceptions, whicli have remained outstanding one full fiscal year after t h e fiscal year
in which issued were no longer payable b y t h e Treasurer of t,he United States,
b u t were required t o be covered into "outstanding liabilities" t r u s t funds with
credit to t h e account of t h e individual payee or owner. Claims for t h e proceeds
of such checks have been settled by t h e General Accounting Office.
Under t h e established procedure, t h e General Accounting Office, after reconciling t h e accounts of t h e various (jovernment disbursing officers, certifies to t h e
Treasury a list of checks which have been outstanding and unpaid for one full
fiscal year. On the basis of such certifications t h e aggregate a m o u n t of these
over-age checks is transferred from t h e accounts of t h e disbursing officers concerned
^ to a n ' a c c o u n t for '^outstanding liabilities." Due to the tremendous increase in
t h e n u m b e r of checks issued, reconciliation of some accounts, notably t h e major
military and naval disbursing accounts, was necessarily delayed. M a n y claims
could be handled only by a special report in each case. This increased t h e work
a n d ultimately delayed p a y m e n t . o f claims. An arrangement was worked out
between t h e Treasury and t h e General Accounting Office under which preliminary
120
REPORT OF THE SECRETARY OF THE TREASURY
transfers were made to the "outstanding liabilities" trust fund from the major
military and naval officers' disbursing accounts before these accounts had been
reconciled. By making funds available, the number of special reports was reduced materially, making possible immediate payment of settlements upon
their receipt from the General Accounting Office,
The increase in activities relative to over-age checks for the fiscal years indicated
is set forth below:
1944
Number of items covered
_
Number of claims forwarded to General Accounting Office
Number of certificates of settleraent processed
65,971
4,081
5,841
1945
81,363
7,653
8,211
1946
1947
82, 627
52, 706
37,429
687,678
42,180
72,331
This activity hereafter will be greatly reduced because under the provisions of
Pubhc Law 171, approved July 11, 1947, checks, with certain exceptions, are
payable for a period of ten years from the date of issue.
. Colorado River Dam fund.—The Colorado River Dam fund was established
under the act of December 21, 1928 (43 USC 617). The Annual Report of the
Secretary of the Treasury for 1946 (p. 119) sets forth the background of the fund.
Its present status is as follows:
Status of Colorado River Dam fund as of close of each operating year, 19SS through
1947
1
Operating
year
ended
M a y .31
1933
1934
1935
1936
1937
1938
1939
1940
1941--1942
1943-1944
1945
3946
1947
Charges i
Advances
Interest
on
advances
Interest on
araount
outstanding
Credits
Total
Credit
on
interest
P a y m e n t of
charges
Interest a n d
on
repayment
of a d v a n c e s 2 a m o u n t
outstanding
Accumulated
balance du©
a t e n d of
each
operating
year
$11,992,062.67
$11,890, 632. 62 $101, 629.95
$11, 992, 062. 57
18, 424, 397. 76 249, 674.11 $359, 761. 88 19.033, 833. 75
31, 025, 896. 32
23,607.521.44 399,464. 48 930. 776.89 24, 937, 762.81
55, 963, 659.13
21,
974,
681.
03
319,761.45
1,678,909.77
77, 938, 340.16
- - 19, 976, 009. 81
87,834, 205. 60
7, 410, 641. 30 147,073.83 2,338,150.21 9, 896, 865.34
5,.686, 000. 00 88, 848. 90 2, 635, 026.17 8, 408,875. 07 $1,100,000. 00 $30, 221.91 95,112, 858. 66
5, 590, 265. 49 74, 926.12 2,863,386.76 8, 518, 677. 37 4, 600, 000.00 67,101.35 98, 964, 334. 68
4, 050, 000. 00 67, 278. 68 2, 968, 930. 04 7,086, 208. 72 3, 500, 000. 00 56,377. 05 102, 494,166. 35
4,800, 000. 00 87,875. 34 3, 074,824. 99 7, 962, 700. 33 7, 000, 000. 00 93, 780.80 103, 363, 085. 88
3, 546, 585. 62 56,152. 98 3,100,892. 68 6, 703, 631.18 2, 000, 000. 00 41, 753. 42 108, 024, 963. 64
4, 700, 000. 00 99,139. 68 3, 240, 748. 91 8, 039,888. 59 2, 000, 000. 00 10,849. 32 114,054,002.91
2, 725, 000. 00 45, 625. 00 3,421,620.09 6, ] 92, 245. 09 5, 000, 000. 00 49, 057. 38 115,197,190.62
- 1, 400, 000. 00 20, 621. 92 3,455,915.72 4,876, 537. 64 312,500,000.00 35, 383. 57 107,538,344.69
3, 226,150. 34 3,226,150.34 4 4, 256, 302. 41 46,256. 70 106, 461, 935. 92
1, 608, 982. 89 32, 019. 92 3,193,858.08 4,834, 860.89 « 4,000, 000. 00 51,780.82 107,245,015.99
T o t a l - . 116,414,936.93 1,789,992.36 36,478,951.43 153,683,880.72 46, 956, 302. 41 482, 662.32 107,245, 015. 99
.
J Excludes $25,000,000 of advances allocated to flood control, repajrment ofwhich is deferred to June 1,1987.
2 Repayments deposited are applied first to net interest charge, second to advances.
3 Includes repayment of advances, $6,267,609.35.
4 Includes repayment of advances, $1,076,408.77.
5 Includes overpayment of Interest In the amount of $825,902.82, to be adjusted.
Government Losses in Shipment Act.—Prior to July 1937, shipments of money
securities, documents andthe like, made by Government departments and agencies,
were in most instances protected while in course of shipment by insurance provided
under contracts with private companies. The Government Losses in Shipment
Act (50 Stat, 479), which became effective July 1, 1937, provided for the establishment of an insurance plan within the Government under which the United
States would assume the risks on its shipments of valuables, thereby obviating
REPORT OF THE SECRETARY OF THE TREASURY
121
the necessity of purchasing insurance from private companies to cover such
shipments. This self-insurance plan has resulted in a substantial monetary
saving to the Government, The act is administered by the Treasury Department, and the Secretary of the Treasury has prescribed regulations governing the
shipment of valuables by Government departments and agencies under coverage
of the act. Also, the Secretary has declared, in aci^ordance with the provisions
of the act, what articles, things, or representatives of value may be considered
to be *'valuables" within the meaning of that term as used in the act.
Under authority of the act a revolving fund was set up in the Treasury from
which payments are made for valuables lost, destroyed, or damaged while in
course of shipment. The act authorized an initial appropriation of $500,000 to
the fund, and it further authorized annual appropriations of $200,000 to be made
to the fund, beginning with the fiscal year 1939 and ending with the fiscal year
1948, inclusive, and from time to time such additional amounts as might be
necessary to carry out the provisions of the act. However, to June 30, 1947,
only $602,000 had actually been appropriated to the fund. The balance of
$91,803,13 in the securities trust fund was transferred to this fund, as provided
in the amendment to the act approved August 10, 1939 (53 Stat. 1358), making
a total of $693,803.13 avahable for payment of losses under the act. In addition,
all recoveries and repayments effected in connection with the operation of the
fund are deposited currently to the credit of the fund and may be used for payment
of losses.
Originally the payments which could be made out of the fund were restricted
to reimbursement for losses which resulted from the shipment of valuables;
however, subsequerit legislation has made the fund available for the payment
of other types of losses, as follows:
(a) Payments may be made out of the fund for losses arising from the agency
functions performed by the Post Office Department for the Treasury, regardless
of the manner in which the losses occur, in connection with the sale by post
offices throughout the country of United States savings bonds. United States
savings stamps, etc. Such losses may occur as a result of a fire, jbheft, embezzlement, flood, tornado, shipment, of securities and funds, burglary or robbery of a
post office, and similar contingencies,
(b) The Secretary of the Treasury is authorized by the amendment to the act
approved August 10, 1939, to issue, agreements of indemnity for the purpose
of enabling Government departments and agencies to obtain the replacement of
any instrument or document, such as a bank draft, cashier's check, certified
check, warehouse receipt, and the like, received by the United States or by any
of its agents in their official capacity, which, after having been so received, became
lost, destroyed, or mutilated to such an extent as to impair its value.
(c) Under the provisions of section 22 (i) of the Second Liberty Bond Act,
as amended by the Public Debt Act of 1943 (Public Law 34) and further amended
by the Pubhc Debt Act of 1945 (Public Law 28), several types of financial institutions may qualify as paying agents of United States savings bonds, and the
fund is avahable for the replacement of any losses resulting from payments made
in connection with the redemption of such bonds.
Section 3 of the Government Losses in Shipment Act, as amended provides
that when the Secretary of the Treasury determines that replacement of a loss
can be made by credit in the account of the Government department or agency
presenting the claim, without actual or ultimate injury to the United States,,
settlement may be made in that manner; therefore, in such a settlement no
payment is made out of the fund on account of the loss. The Comptroller General of the United States is accordingly notified by the Treasury when a claim is
settled in such manner, in order that he may allow credit for the amounts involved
in his settlement of accounts of the Government officer concerned.
The reported monetary value of shipments made by Government departments
and agencies during the fiscal year 1947 under the provisions of the Government
Losses in Shipment Act, as amended, of the classes of valuables which were
covered by the Treasury's insurance contracts with private companies prior to the
enactment of the act, amounts to $169,117,737,794. It is estimated that the
Government saved more than $3,500,000 during the fiscal year 1947 in insurance
premiums on such shipments and that it has saved more than $21,200,000 in
insurance premiums on its shipments of valuables from the inception of the act
122
REPORT OF T H E SECRETARY OF T H E TREASURY
through June 30, 1947, b.y using any one of t h e three bases on which t h e e s t i m a t e s
are made, as shown in t h e following table:
Estimated insurance premium savings during the fiscal years 1946 and 1947 and the
total estimated savings through J u n e SO, 1947
Fiscal year
1946
On basis of premiuin rates for—
$3,928,000
4, 901, 000
4, 717,000
Fiscal year 1938 i...
Fiscal year 1937 2...
Fiscal years 1936-38
Fiscal year
1947
$3, 631, 000
4, 406, 000
4, 240, 000
August 16,
1937, through
June 30, 1947
$21, 277,000
26, 748, 000
25, 726, 000
1 Lowest rates under Insurance contract system.
? Rates In effect at tirae estiraates of insurance premiura savings were presented to Congress.
3 Average based on rates effective in last three years of Government insurance contract system.
Other classes of valuables with an aggregate value of $273,018,671,977 were
shipped by Government d e p a r t m e n t s and agencies during t h e fiscal year 1947
under coverage of t h e Government Lo.sses in Shipment Act, as a m e n d e d ; however,
these shipments have not been included in t h e calculation of estimated insurance
p r e m i u m savings in t h e foregoing table for t h e reason t h a t t h e Government did
not, as a general practice, insure t h e m prior t o July 1, 1937, t h e effective date of
t h e act. From t h e inception of t h e act t h r o u g h June 30, 1947, Government
d e p a r t m e n t s and agencies have reported shipments of valuables in an aggregate
a m o u n t of $2,299,880,162,140 as having been made under t h e provisions of t h e act.
The following tables contain information concerning t h e operations of t h e revolving fund established under a u t h o r i t y of t h e Government Losses in Shipment
Act and reflect t h e Government's experience in its operation of t h e self-insurance plan. •
Agreements of indemnity issued by the Treasury from Aug. 10, 1939, through J u n e
SO, 1947
Number
A g r e e m e n t s of i n d e m n i t y issued t h r o u g h J u n e 30,1946
A g r e e m e n t s of i n d e m n i t y Issued d u r i n g t h e fiscal year 1947
T o t a l agreements of i n d e m n l t v Issued
A g r e e m e n t s of I n d e m n i t y canceled t h r o u g h J u n e 30,1947
Agreements of i n d e m n i t y i n force as of J u n e 30,1947
Amount
:..
108
64
$2,138, 646.21
233, 726.11
.-.--
172
13
2, 372, 371.32
1, 007,695.26
169
1, 364, 676, 07
--
Number and amount of claims made, settled, and unadjusted from Aug. 15, 19S7,
through J u n e SO,^ 1947_
Number
T o t a l claims m a d e t h r o u g h J u n e 30, 1946
C l a i m s m a d e d u r i n g fiscal year 1947:
Processed b y D i v i s i o n of D e p o s i t s
Processed b y B u r e a u of t h e l?ublic D e b t T o t a l claims to J u n e 30, 1947
-
--
.
-.-
T o t a l claims settled t h r o u g h J u n e 30, 1946.
C l a i m s settled d u r i n g fiscal year 1947:
Processed b y D i v i s i o n of D e p o s i t s :
A p p r o v e d for p a y m e n t o u t of t h e fund:
B o n d r e d e m p t i o n casesAll other cases
Settled b y credit in a p p r o p r i a t e accounts
Settled w i t h o u t p a y r a e n t or credit
Processed b y B u r e a u of t h e P u b l i c D e b t :
A p p r o v e d for p a y r a e n t out of t h e fund,^bond r e d e r a p t i o n cases
T o t a l clairas settled t h r o u g h J u n e 30, 1947
C l a i m s u n a d j u s t e d as of J u n e 30, 1947 1
'
-
-
1 Excludes claims in process of adjustment by Bureau_of the Public Debt.
-'
Amount
796
$1, 998, 671.19
266
371
102, 402.15
101, 244.88
1, 432
2,202, 318. 22
777
1, 982, 674. 52
84
143
40
7
16,328.03
21,867. 32
70, 335.15
927,15
371
101,244.88
1,422
10
2,193, 367.05
8, 951.17
1,432
2,202, 318. 22
REPORT OF THE SECRETARY OF THE TREASURY
123
Status as of June SO, 1947, of the revolving fund established under authority of the
Government Losses in Shipment Act
I.
RECEIPTS AND E X P E N D I T U R E S
Cumulative
t h r o u g h Junel Fiscal year
1947
30, 1946
Cumulative
through June
30, 1947
Receipts:
Appropriations
-.
-T r a n s f e r r e d (Sept. 21, 1939) from t h e securities t r u s t fund
Recoveries of p a y m e n t s for losses
$602,000.00
91,803.13
9,737.74
Totalreceipts
Expenditures:
P a y m e n t s for losses (on basis of checks issued)
703, 640.87
20, 292.27
723,833.14
2 146,473. 75
158,302. 26
3 304,776.01
B a l a n c e in fund
:
-.-
557,067.12
II.
-138,009. S
$602,000.00
91.803.13
30,030.01
419,057.13
F U N D ASSETS
Decrease (—)
fiscal year
1947
J u n e 30,1947
$88.888.67
- $ 3 8 , 652. 26
$60,336.41
468,178.45
-99,457.73
368,720.72
557,067.12
-138,009.99
419,057.13
J u n e 30, 1946
U n e x p e n d e d balances:
T o t h e credit of t h e disbursing officer
O n t h e books of t h e Division of B o o k k e e p i n g
WarrantsT o t a l f u n d assets
1 $20, 292. 27
--
and
--
1 E x c l u d e s recoveries In t h e a m o u n t of $1,797.60 In process of being deposited to t h e credit of t h e fund.
2 I n c l u d e s p a y m e n t In t h e a m o u n t of $64.44 representing a n excess recovery previously p a i d into t h e fund
from t h e securities t r u s t fund,
.
.
3 I n c l u d e s a p p r o x i m a t e l y $15,000 in s e t t l e m e n t of losses ol s t a m p s (Includes unissued d o c u r a e n t a r y i n t e r n a l
r e v e n u e s t a m p s a n d m o t o r vehicle use tax s t a r a p s w h i c h were .completely destroyed, a n d r e d e e m e d U n i t e d
States savings s t a m p s ) w h i c h do n o t represent an actual m o n e t a r y loss to t h e G o v e r n m e n t , A p p r o v e d
claims in t h e a m o u n t of $1,499.10 in process of s e t t l e m e n t not included,
FOREIGN FUNDS CONTROL i
Under section 5 (b) of the Trading with the Enemy Act, as amended, and
Executive Orders 8389, as amended, and 9193, as amended, the Treasury Department, through. Foreign Funds Control, formulates and administers controls
over foreign-owned property and regulates certain international financial transactions.
Over 54,000 applications for licenses to effect transactions otherwise prohibited
by the act and Executive orders were reviewed during the fiscal year 1947 by
Foreign Funds Control, and the Federal Reserve Banks acting as field agents.
This is to be compared with some 112,000 applications reviewed during the preceding year.
In accordance with the policy of liquidating Foreign Funds Control as rapidly
as possible and at the same time protectuig the basic interests of this Government,
the Washington staff was reduced from a total of 300 as of June 30, 1946, to 53
as of June 30, 1947, At the start of the last fiscal year there were.three Federal
Reserve Banks operating as field agents, but at the present time only the Federal
Reserve Bank of New York conducts field operations for Foreign Funds Control. '
In August 1946, Foreign Funds Control closed its Philippine office.
A further discussion of Foreign Funds Control activities during the fiscal year
wih be found on page 53 of this report.
1 S h o r t l y after t h e close of t h e fiscal y e a r transferred to t h e n e w l y created
Finance.
,
'
Office of I n t e r n a t i o n a l
124
REPORT OF THE SECRETARY OF THE TREASURY
BUREAU OF INTERNAL REVENUE
The Bureau of Internal Revenue is responsible for the assessment and collection of all taxes imposed by any law providing internal revenue. It also has
responsibilities under statutes which, while not imposing taxes, relate to internal
revenue. Among these are the Federal Alcohol Administration Act, the. Liquor
Enforcement Act of 1936, the Federal Firearms Act, and the Stabihzation Act of
1942.
Certain of the major functions of the Bureau are described herein. A more
detailed description will be found in the Annual Report of the Commissioner of
Internal Revenue for the fiscal year 1947.
COLLECTIONS
Internal revenue collections for the fiscal year 1947 totaled $39,108,273,000.
This was 3.8 percent less than the preceding year. The dechne was due to the
repeal of (a) the excess profits tax, effective in gene;ral with respect to taxable
years beginning after December 31, 1945, (b) the capital stock tax, effective with
respect to taxable years ending after June 30, 1945, and (c) the declared value
excess profits tax, effective with respect to income tax taxable years ending after
June 30, 1946; and to the reduction of the individual income tax, effective
January 1, 1946,
A comparison of collections from the principal sources of revenue for the fiscal
years 1946 and 1947 follows.
Fiscal year
1946
Fiscal year
1947
Source
Percent increase or
decrease (—)
In thousands of dbllars
Income and profits taxes:
Individual (including withheld).
Corporation
.---
18, 704, 536
12,663,602
19,343,297
9, 676, 757
3.4
-22.9
Total income and profits taxes,
Employment taxes
Estate and gift taxes
Alcoholic beverage taxes
Tobacco taxes..
Stamp taxes.
_•—
Manufacturers' excise t a x e s . . . .
Retailers' excise taxes.
Other taxes
.--
31,268,138
1, 700,828
676,832
2, 626,162
1,165,619
87, 676
922, 671
492,046
1,842,050
29,020,054
2,024,365
779, 291
2, 474, 756
1, 237, 768
79,978
1,426, 396
614, 227
1, 662,439
-7. 2
19.0
16.1
-2.0
' 6.2
-8.8
64.5
4.5
-16.7
40,671. 922
39,108,273
-3.8
Total collections
NOTE.—Detailed internal revenue collections appear in table 7. Figures exclude collections for credit to
trust accounts.
ENFOECEMENT ACTIVITIES
The fiscal year 1947 marked the second year of the concerted campaign to
strengthen the Bureau's enforcement program. The results are exemplified by a
50.6 percent increase in additional assessments.
The preponderance of additional tax cases involved unintentional errors, but
quite frequently cases involving gross fraud were encountered. This latter group
resulted for the most part from the efforts "of individuals to conceal profits from
black market and other illicit activities. Some resulted from efforts of both cor• porations and individuals to avoid payment of the high taxes brought about by
the coincidence of high rates and high income during the war.
At the beginning of the year the campaign was stimulated by the entry into
productive work of the several thousand new deputy collectors, auditors, revenue
agents, and special agents who had been recruited and trained in the preceding
year. Before the end of the year, however, the work was hampered by the loss of
several hundred of these men.
REPORT OP THE SECRETARY OP THE TREASURY
125
The effectiveness of the enforcement campaign is indicated by the following
comparisons of additional assessments and distraint warrant collections in recent
years:
Fiscal year
Additional
assessments
Distraint
warrant
collections i
In thousands of dollars
1942
1943
1944
1946.
1946.
1947.
438, 441
566,068
730,974
922,428
1,280,218
1,928, 610
1 Distraint warrant collections represent primarily collections of undisputed amounts which taxpayers
have failed to pay when due. Occasionally, it becomes necessary to collect additional assessments by distraint warrant, but these cases are estimated to amount to only 6 percent of the total distraint warrant
collections.
Audits and investigations of income and profits tax cases accounted for slightly
over 90^percent of the additional assessments; the balance is attributable to
estate, gift, alcohohc beverage, tobacco, employment, and aU other taxes.
To a large extent, these assessments were made as the result of errors and
omissions discovered in the routine audit of returns. Not counting special fraud
investigatioris, a total of 2,944,539 returns of all kinds—including 2,283,055
individual income tax returns and 230,096 corporation income and excess profits
tax returns—were examined or investigated under procedures involving direct
contact, either oral or by correspondence, with taxpayers. The number of
returns subjected to these enforcement processes was 43.8 percent greater than in
the preceding year. Additional tax was assessed in about half of these cases.
However, this proportion would not necessarily hold true if all returns were investigated, since the examined returns were selected by special procedures designed
to segregate the returns most likely to need correction.
In addition to the above examinations, 4,125 fraud investigations were made,
resulting in prosecution recommendations against 1,332 individuals—more than
double the previous year. Cash penalties of a civil nature were assessed in many
of the cases which did not warrant criminal prosecution.
The growth of criminal prosecution cases as a result of the campaign is illustrated
by the fact that the number of persons convicted on tax evasion charges grew as
follows:
Fiscal year
Individuals
convicted
65
149
1945.
1946.
1947.
Besides cases of outright tax evasion, numerous investigations also were made
under various regulatory statutes, especially the Federal Alcohol Administration
Act.
WORK-LOAD
Neither legislative changes nor the cessation of hostilities caused any material
"change in the year's work-load of the Bureau. It started the year with a backlog
of 89,672,668 returns of all types awaiting action. It received or reopened
88,141,884 returns (an increase of 21.5 percent), and ended the year witha backlog
of 78,892,062 returns (a decrease of 14.5 percent). Ah but 454,933 of the returns
awaiting action at the end of the year were income or profits tax cases.
While these statistics give a broad view of the work-load of the Bureau, it
must be understood that no two returris require the same amount of attention,
and that in fact many returns are disposed of after only superficial examination.
In many cases, the expenditure of investigative resources would be uneconomical.
126
REPORT OF THE SECRETARY OF THE TREASURY
However, a sizable number of cases, worthy of investigation, cannot be investigated at this time because of the lack of sufficient personnel.
Thus, of the 98,922,490 returns of all types disposed of during the
year, 95,927,951 were disposed of without audit or investigation. This is the
primary factor in the reduction of the backlog of cases during the year.
The balance of 2,994,539 returns disposed of during the year were subjected to
audit and investigation, as described in the "Enforcement activities" section of
this report.
The foregoing refers to the enormous quantity of returns which must be processed, but the work-load also includes many thousands of complicated claims for
adjustments based on section 722 and the various "carry-back" and ''amortization
of emergency facilities" provisions of the Internal Revenue Code. While these
cases are not nearly so numerous, their complexity and importance necessitates
the diversion of a large percentage of the best trained technicians in the Bureau..
Section 722, which allows relief from excess profits tax for corporations under
certain circumstances, had as of the close of the year resulted in the filing of 46,630
applications for excess profits tax reductions totalirig $5,037,538,106, of which
25,840 claims totaling $4,233,897,775 were stih pending at the end of the year,
"Carry-back" allowances of $1,004,752,676 and readjustments of amortization
of emergency fachities amounting to $53,443,148 also were made during the year
under the "quick refund" provisions of the Tax Adjustment Act of 1945.
PERSONNEL
The accounting, investigative, legal, and other technical work of the Bureau
necessarily requires a high percentage of trained personnel. Therefore, in many
cases, this was a limiting factor iri the operations of the Bureau since it was not
possible to hire, and to retain, the desired number of persons.
For this reason, attention is drawn to the loss during the year of 6,863 employees,
mostly through deaths, retirements, and resignations, although a small number
of persons were dismissed for inefficiency or other causes. Most of the loss resulted
from a policy adopted in the last four months of the fiscal year to suspend all
hiring and promotions of personnel in order to assure maintenance of the Bureau's
costs within the available appropriations. Such reduction in personnel is exclusive of the substantial dismissals which resulted from reduced appropriations
for the following year.
Changes in the Bureau's personnel during the year are shown in the following
table:
Summary of personnel. Bureau of Internal Revenue, June SO, 1946, as compared
with June SO, 1947
Number on payroll as ofBranch of service.
June 30,1946 June 30,1947
Departmental service
-
Field service:
Offices of collectors of internal revenue
Supervisors of accounts and collections
Internal revenue agents' forces:
Income, profits, estate, and gift taxes-.
Miscellaneous and sales taxes
Alcohol Tax Unit:
Offices of district supervisors
Fleld Inspection force.
Intelligence Unit
._
Technical Staff
.. Excess Profits Tax Council
Office of the Chief Counsel
i
Salary Stabilization Unit
Processing Division,
Increase or
decrease (—)
6,144
4,771
-373
36,062
79
30,891
77.
9,616
-4,171
-2
9,907
76
4,967
13
1, 557
618
4,773
13
1,351
-291
11
-194
321
136
1,914
71
356
16
278
-206
14
71
35
-121
-1,636
Total field service-
54, 549
48,059
-6,490
Grand total
69, 693
62,830
-6,863
632
REPORT OF THE SECRETARY OF TPIE TREASURY
127
COST OF ADMINISTRATION
The entire cost of the Bureau during the year, including salaries, equipment,
travel, supplies, e t c , but exclusive of amounts refunded to taxpayers, was
$203,916,822, Due to the difficulty of estimating some costs incurred prior to
the close of the year, there was an unexpended balance of $500,578 in the $204,417,400 appropriation for the Bureau.
Since the Bureau collected $39,108,273,000 during the year, the cost of collectiori
was 52 cents per $100 revenue. In the previous year, when collections were
slightly higher and governmental salaries were lower, the average was 43 cents
per $100.
PuE FUNDS
Refunds of taxes and interest on refunds, required by law, are paid out of a
separate appropriation. They amounted to $2,882,735,904, or slightly less than
in the preceding year.
Continued emphasis on speed in making refunds resulted not only in convenience
to taxpayers but also in substantial interest savings. Interest payments on
refunds declined from $66,125,230 in the fiscal year 1946 to $49,605,704 in 1047.
SETTLEMENT OF DISPUTES
Efforts to settle tax disputes without expensive and time-consuming litigation
yielded exceptionaUy good results during the year. Of 41,784 income, profits,
estate, and gift tax returns in which taxpayers had protested the examiners'
findings, 36,536 were settled by the Bureau and 5,248 were appealed to the Tax
Court. As the result of hearings conducted in cases pending before the Tax
Court, an additional 3,258 returns were settled by stipulation, thereby reducing
substantially the number of cases to be tried.
SALARY STABILIZATION
Under authority of Executive Order 9801, dated November 9, 1946, the Bureau
suspended enforcement of the wartime salary stabihzation regulations, and proceeded to substantially liquidate its work in this field. By the end of the year,
there remained on hand only a small number df contravention cases, which arose
prior to the Executive order.
ADDITIONAL DATA IN COMMISSIONER'S
REPORT
In order to conserve paper and printing costs., there have been omitted from
this report considerable information and statistics which are set forth in detail in
the annual report of the Commissioner of Internal Revenue.
LEGAL DIVISION
The General Counsel is by statute the chief law officer of the Treasury Department-, and is directly responsible to the Secretary for the work of the Legal Division, and such other duties as may be assigned to him by the Secretary from
time to time. The Legal Division is composed of the legal staff in the Office
of the General Counsel and the legal staffs in the Bureau of Internal Revenue,
Bureau of Customs, Bureau of Narcotics, Bureau of the Public Debt, Bureau of
Federal Supply, Bureau of the Comptroller of the Currency, Foreign Funds
Control, and U. S. Coast Guard. The General Counsel, with the assistance of
his legal staff, gives advice on legal problems to the Secretary, the Under Secretary,
^the Fiscal Assistant Secretary, Assistant Secretaries, and the administrative
officers of the Department; exercises general supervision over the work of the
legal staffs in the aforesaid bureaus; a.nd serves as legal adviser to the branches of
the Department not having legal staffs, such as the Division of Monetary Research
(now included in the Office of International Finance), Bureau of Accounts, Bureau
of Engraving and Printing, Bureau of the Mint, U. S, Secret Service, Treasurer's
Office, and the U. S. Savings Bonds Division.
The activities of the Legal Division embrace all legal questions arising in connection with the administration of the duties and functions of the various bureaus,
divisions, and other branches of the Department, These activities also include
consideration of legal problems relating to broad financial, economic, and social
programs and problems with respect to international cooperation in the monetary
128
REPORT C F TiiE SIECRETARY O F T H E TREAStfRY
and financial .fields. A more complete description of the scope of the activities
of the Legal Division is to be found in the various admiriistrative reports of bureaus and divisions of the Department coritained elsewhete iri this report.
In addition, the legal staff in the Office of the General Counsel handles legal
matters relating to legislation, including the drafting of legislation and preparation
of reports to committees of Congress and the Bureau of the Budget; appears
before congressional committees; prepares and reviews Executive orders and
proclamations and departmental rules and regulations; prepares formal and informal opinions and memoranda for the guidance of the administrative officers
of the Department; drafts or approves contracts and amendments to contracts;
handles legal problems pertaining to gold and silver transactions and the administration of the stabUization fund; conducts the legal work in connection with railroad securities held by the Secretary of the Treasury pursuant to loans under the
Transportation Act of 1920; performs the necessary pretrial work in litigation
involving Treasury activities and conducts litigation before the Tax Court of the
United States; coordinates all aspects of the settlement of tort claims; passes
upon legal questions arising in the payment of Mexican claims and payments to
holders of awards of the Mixed Claims Commission; makes recommendations to
the Secretary in iriatters relating to compromise settlement of general claims of
the United States; performs the legal work in connection with licensing and disbarment of practitioners before the Treasui"y Departriient and of customhouse
brokers; handles all legal work in connection with the removal of Treasury employees on grounds of disloyalty; and supervises legal matters relative to inventions and patent rights of Treasury employees, to claims of Treasury employees
for personal losses sustained in connection with assignments abroad, and to disclosure of official information.
During the fiscal year 1947, among the many special problems handled by the
Legal Division were those relating to the collection of the revenues and related
problems; the issuance of public debt obligations; compliance with the provisions
of the Administrative Procedure Act; the formulation of Department'procedure
for the handhng of claims under the Federal Tort Claims Act, including the preparation of necessary regulations and instructions; representation on the working
committee of the President's Temporary Commission on Employee Loyalty and
coordination of Treasury activities on employee loyalty; the liquidation of the
residual affairs of various war agencies; the renegotiation of war contracts; the
settlement of terminated war Contracts and claims arising therefrom; the settlement of claims for war contractors for relief against loss under the Lucas Act
(Public No, 657, 79th Cong,), and claims under section 17 of the Contract Settle-,
ment Act, 1944 (defiective,^ informal, and quasi contracts); termination and rejpeal
of statutes granting emergency and wartime powers; the permanent integration
of the functions of the former Bureau of Marine Inspection and Navigation,
Department of Commerce, with the Coast Guard and the Bureau of Custpms,
under Reorganization Plan No. 3 of 1946; hearings involving public utility rates
and other proceedings resulting in considerable savings to the United States;
legal work arising in corinection with Treasury participation in the activities of
the National Advisory Council on International Monetary and Financial Problems
which coordinates the foreign financial and lending policies and operations of the
United States Government, including the policies and operations of the United
States representatives on the International Monetary Fund and International
Bank; and financial and monetary problems arising in connection with the
occupation of foreign areas by United States forces.
The General Counsel also has general supervision of the Office of the Tax
Legislative Counsel.
TAX LEGISLATIVE COUNSEL
The Office of the Tax Legislative Counsel, reporting through the General
Counsel, advises the Secretary of the Treasury in all technical and legal aspects
of tax policy and legislation. In addition, the Office represents the Treasury
before the committees of Congress with respect to the technical aspects of tax
legislation and also assists the legislative counsels of the House of Representatives
and the Senate in the drafting of measures affecting the revenue, and aids the congressional committees dealing with tax legislation in the preparation of the technical aspects of the reports issued in connection with legislation.
During the fiscal year 1947, this Office, in cooperation with the staff of the Joint
Committee on Internal Revenue Taxation and the legislative counsels of the
REPORT OF THE SECRETARY OF THE TREASURY
129
House and Senate, rendered technical assistance to congressional committees on
the individual income tax reduction bills passed by the Congress, Other legislation in connection with which the Office assisted the Congress and advised the
Secretary included the Excise Tax Act of 1947,oa number of miscehaneous revenue
bills, and an act to terminate certaih wartime tax provisions.
The Office represents the Treasury Department iri the work of an interdepartmental committee- on international tax matters, and from time to time aids in
the negotiation of treaties for the prevention of international double taxation and
for administrative cooperation. During the fiscal year 1947, tax discussions were
held with representatives of the Governments of France, Belgium, the Netherlands, Luxembourg, the Philippines, New Zealand, Italy, Sweden, and Mexico.
In addition to the work on treaties, the Office advised the United States Delegate
to the United Nations Fiscal Commission regarding international tax problems.
Advice is also rendered on the legal aspects of Federal-State tax relations.
This Office is the divisiori of the Treasury Department to which the general
public, members of Congress, and interested members of the tax bar can present
their views with respect to proposed amendments to the tax laws. Suggestions
and proposals of this character are studied and reviewed by the Office, as are also
suggestions from the Bureau of Internal Revenue for improvement of tax administration, in relation to the existing tax law and tax policies sought to be effected
by the Department. Studies of technical problems of a more extensive nature are
frequently conducted in cooperation with advisory committees composed of
prominent tax authorities outside the Government.
In addition to the work on major revenue legislation and tax treaties,-the Office
rendered reports on 129 bills introduced in the Congress which pertained to revenue matters. Thirty-five Treasury decisions amending existing regulations of
the Commissioner of Internal Revenue, where circumstances required a revision
or the establishment of new regulations for the interpretation of new legislation,
^ were reviewed in this Office for the Secretary of the Treasury. The Office is now
reviewing for the Secretary proposed closing agreements with taxpayers at the
rate of approximately 110 annually, and is taking part in the periodic revision of
forms necessary to the administration of the revenue laws.
BUREAU OF THE MINT i
The principal functions of the Mint Service consist of the nianufacture of
domestic coins; the safeguarding of the Government's holdings of the monetary
metals, including coins in processing stages until finished and issued; and the
acquisition of gold and silver bullion, payments for which are made on the basis
of mint assays. Other major activities include the refining of gold and silver,
the manufacture of coins for foreign governments, the issuance of Treasury licenses
for the acquisition, ownership, possession, and use of gold for industrial, professional, and artistic purposes, and the production of medals and other decorations.
Seven field institutions were in operation during the fiscal year 1947: Coinage
mints at Philadelphia, San Francisco, and Denver; assay offices at New York
and Seattle; gold bullion depository at Fort Knox; and silver bullion depository
at West Point, which operates as an adjunct of the New York Assay Office. The
Bureau of the Mint in Washington administers all Mint Service activities. At
the close of the fiscal year 1947 there were 1,783 employees in the Mint Service,
compared with 2,547 employees a year ago.
COINS
,
Coinage:—Coinage production by the three mints during the fiscal year 1947
totaled 2,350,571,022 pieces, of which 2,016,485,295 pieces were United States
coins and 334,085,727 were foreign.
I Further information concerning the Bureau of the Mint is contained in th^ Annual Report of the Dlre^tof
of the Mint.
130
REPORT OF THE SECRETARY OF THE TREASURY
Production of United States coins during the fiscar year 1947 increased 22
percent over the 1946 production of 1,658,127,100 pieces. The following table
contains the details:
Number of
pieces produced
Denomination
Half dollarsl
Quarter dollars
Dimes
..
6-cent pieces..
1
1-cent pieces K...
Total.-
--
.Su.
..•_..
„.
Face value
19, 294,695
52, 568, 400
299, 467, 000
196,970, 200
1,448,186,000
$9, 647, 347. 50
13,142,100. 00
29,946, 700. 00
9, 848, 510.00
14,481,850. 00
2, 016,485, 295
77, 066, 507. 50
1 Includes 100,057 Iowa Centeimial commemorative half dollars, and 1,700,938 Booker T. Washington
comraeraorative half dollars.
2 Includes 1,066,780,000 pieces with a coraposition of 95 percent copper and 6 percent zinc coined JulyDecember 1946, and 381,405,000 pieces with a composition of 95 percent copper and 5 percent zinc and tin
coined January-June 1947.
The mints manufactured 334,085,727 coins for the following governments
during the fiscal year 1947:
Number of
pieces
produced
Government '
Colombia
-..Cuba
. . .
Dominican Republic
Fonador
Ethiopia
Netherlands East Indies
-.
24,777,000
50,117.000
600, 000
114,179,000
18,306,363
21, 675,000
Number of
pieces
produced
Government
Panama
Saudi Arabia
Venezuela
Total
.
2,650,000
150,621,364
61,160,000
-- -
- -- 334,086,727
--
1 Includes 121,364 gold disks.
Issue of United States coins.—The mint institutions issued 1,399,314,937 United
States coins with a value of $72,923,621 during the fiscal year 1947. Issues were
as follows:
Number of
pieces issued
Denomination
Face value
Silver dollars.-,
Half dollars
Quarter dollars.
Dimes
6-cent pieces.--.
1-cent pieces.--.
8,960,206
10,756,978
51,288,938
281, 233,016
179,215,800
867,860,000
.$8,960, 206. 00
5,378,489.00
12,822, 234. 50
28,123,301.50
8,960,790. 00
8,678, 600.00
TotaL—.
1,399,314,937
72,923,621.00
Stock of coins.—The total stock of domestic coins in the United States and
possessions, as of June 30, 1947, is estimated at $1,765,007,387, comprising
$493,462,387 in standard silver dollars, $922,656,000 in subsidiary coin, and
$348,889,000 in minor coin. These figures do not include limited amounts of
United States coin which circulate as legal tender in certain Latin American
countries.
•
MEDALS
The Medal Department is located.at the Philadelphia Mint. Medals and
other decorations authorized by the armed services constituted the bulk of the
work in 1947 as in the past several years. The medals and other distinguishing
devices for the Army, Navy, Marine Corps, and Coast Guard totaled over
2,400,000 pieces during the year. I In addition, there were 426 private niedals
jnade and 5,649 commemorative medals sold from regular stock,
REPORT OF T H E SECRETARY OF T H E TREASURY
. 131
G O L D AND S I L V E R
Bullion deposit transactions.—Bullion deposit transactions at t h e mints a n d
assay offices during t h e fiscal year 1947 totaled 11,123, including 53 intermint
transfers. Assay determinations required by t h e deposit transactions totaled
19,850, including 807 determinations for t h e intermint transfers.
Gold and silver stocks.—Gold stocks of t h e Treasury on J u n e 30, 1947, were
valued a t $21,266,490,450. Of this total, 607,611,117 fine ounces with a value
of $21,266,389,119 were a t t h e Fort Knox Depository a n d in custody of other
M i n t Service institutions.
i
.
Treasury silver stocks, exclusive of finished silver coin, totaled 1,677,806,488
fine ounces on t h ^ same date. Of this amount, 812,471,764 fine ounces were
held by t h e Office of Defense Plants of t h e Reconstruction Finance Corporation,
etc., and 865,334,724 fine ounces were held by Mint Service institutions.
Refineries.—-vDuring fiscal 1947, electrolytic refineries maintained a t San
Francisco, New York, and Denver refined 3,446,442 fine ounces of gold a n d
3,684,856 fine ounces of silver. In addition, 2,051,809 fine ounces of gold a n d
7,782,836 fine ounces of silver were subject to fire process only.
Stocks of unrefined hullion.—The stocks of unrefined bullion, in terms, of t h e
assayed fine gold and silver content, as of J u n e 30, 1947, totaled 1,357.06 tons.
Gold acquisitions.—During t h e year gold acquisitions, entered as classified
melted receipts, a m o u n t e d t o $1,538,202,712; receipts of domestic coin melted
a m o u n t e d to $176,670; and transfers between mint institutions a m o u n t e d t o
$15,129,752—a grand t o t a l of $1,553,509,134. These transactions included
$2,774 in gold received at $ 2 0 , 6 7 + per fine ounce, t h e increment on which was
$1,923.
Silver acquisitions.—Purchases and deposits of all classes of silver a t t h e m i n t s
a n d assay offices aggregated 99,066,705 fine ounces during t h e fiscal year 1947.
Receipts, classified according to Mint accounts, were as follows:
Class of bulhon
Newly mined domestic sliver:
Purchased at $0.7111+ per ounce
Purchased'at $0,905 per ounce..
Silver contained in gold deposits, etc
Silver received in exchange for Government-stamped bars..
Recoinage bullion from uncurrent subsidiary coin
Recoinage bullion from uncurrent silver dollars
Interralnt transfers of sliver
Deposits of sliver in trust by foreign governments.Redeposits L-Grand total
-.-
---
Number of fine
ounces received
262, 540. 06
18,087, 517. 42
561, 518. 51
626,071.71
1, 214,392.16
49, 917. 06
7,730,415. 72
5,400, 921. 77
66, 243,410. 74
99, 066, 705.13
1 Consists of Treasury stock previously on loan to the Office of Defense Plants of the Reconstruction
Finance Corporation, etc.
Silver from domestic ores mined prior to July 1,1946, was purchased at $0,7111-|r
per fine ounce, in accordance with t h e act of July 6,'1939, Silver from domestic
ores mined subsequent to July 1, 1946, was purchased a t $0,905 per fine ounce,
in accordance with t h e act of July 31, 1946,, Other miscellaneous purchases of
silver, including silver contained in gold deposits, etc., were made a t prices shghtly
under t h e current open-market rates. T h e New York daily m a r k e t quotations
for bar silver ,999 fine ranged from a high of 90}i cents to a low of 59^4 cents per
ounce during t h e fiscal year.
Issue bars manufactured.—Gold issue bars manufactured in 1947 numbered
113,005, and contained 30,833,735fine ounces of gold w i t h a value of $1,079,180,740.
Silver issue bars manufactured in 1947 numbered 2,964, a n d contained 1,154,005
fine ounces of silver. I n addition, t h e New York Assay Office manufactured 603
gold ingots containing 58,640 fine ounces, and 210,883 silver coinage ingots containing 7,442,881 fine ounces for use a t the Philadelphia Mint.
Sales for industrial and artistic use.—During 1947, sales of gold bars for use in
iridustry a n d t h e arts totaled $66,113,173. Silver sold under t h e a u t h o r i t y of
t h e act of July 31, 1946, a t 91 cents per fine ounce, a m o u n t e d to 8,198 fine ounces
during t h e year. . I n addition, small quantities of gold ^rid silver from t h e stock
of ordinary bullion were sold for medals, etc,
' .
764788—48
10
132
REPORT OF T H E SECRETARY OF T H E TREASURY
Monetized silver.—During the fiscal year 1947, silver certificates in t h e a m o u n t
of $14,814,384 were issued by the Treasury against 11,458,000 fine ounces of silver
bullion valued at $1.29-|- per fine ounce, the s t a t u t o r y monetary value of silver.
T h e difference between the cost and the monetary value of t h e silver was $4,473,406
which constituted seigniorage. Silver consumed in domestic coinage during t h e
year amounted to 38,148,011 fine ounces, producing coin valued a t $52,736,147.50.
P R O D U C T I O N AND C O N S U M P T I O N OF G O L D AND S I L V E R I N T H E U N I T E D S T A T E S
Production of gold and silver refined from ores mined in t h e United States and
its possessions during t h e calendar yejar 1946 was as follows: Gold, 1,462,354 fine
ounces with a value of $51,182,390; and silver, 21,103,269 fine ounces. Distribution of production by State of origin appears in t h e annual Mint report for t h e
fiscal year 1947.
Gold issued for use in the iridustrial a r t s in the United States during t h e calendar
year 1946 aggregated $199,686,837, with a return from industrial use of old
jewelry, plate, scrap, etc., amounting to $45,999,837, giving a net consumption of
new gold amounting to $153,687,000, Silver issued for use in a r t s a n d industry
during the calendar year 1946 aggregated 123,646,860 fine ounces, with a r e t u r n
of old plate, scrap, etc., yielding 36,646,860 fine oun,ces, givirig a n e t consumption
of new silver equivalent to 87,000,000 fine ounces.
DIVISION OF MONETARY RESEARCH i
The Division of M o n e t a r y Research UIVN t h e Office of t h e Secretary provides
information, economic analyses, and recommendations for t h e use of t h e Secretary
of t h e Treasury a n d other Treasury officials to assist in t h e formulation and
execution of t h e monetary policies of t h e D e p a r t m e n t and t h e international
financial operations of t h e Treasury. The studies made by t h e Division relate
t o t h e exchange stabilization fund, gold a n d silver, t h e flow of capital funds into
a n d out of t h e United States, t h e position of t h e dollar in relation to foreign currencies, international monetary cooperation, t h e monetary, banking, and fiscal
policies of foreign countries, exchange a n d t r a d e restrictions abroad, and similar
problems.
The Division also provides economic analyses in connection with t h e Treasury's
foreign funds control and t h e customs activities of t h e D e p a r t m e n t a n d t h e duties
of t h e Secretary of t h e Treasury under t h e Tariff Act.
The Division also is responsible for t h e economic and financial w o r k in connection with t h e negotiation of exchange stabilization agreements made by t h e United
States with foreign governments a n d central banks for t h e purpose of promoting
international exchange stability. The Treasury's operations under these agreements are performed under t h e stabilization fund, which is administered by t h e
Division, The Division assists t h e Secretary of t h e Treasury ia carrying out his
responsibilities under t h e Anglo-American Financial Agreement of 1946, and other
matters relating to international t r a d e a n d finance, including t h e t r a d e agreement
program. I t also is responsible for t h e Treasury's work on monetary and financial
problems in liberated and occupied areas.
The Division continued t o perform its function of advising other d e p a r t m e n t s
a n d agencies concerning exchange rates and other financial problems encountered
in operations involving foreign currencies. In particular, a continuous series of
such problems has been encountered by t h e State, War, and N a v y D e p a r t m e n t s
in carrying out their normal functions in foreign countries, and in t h e special tasks
of administering areas occupied by United States forces.
The Director of t h e Division is t h e Secretary of t h e National Advisory Council
on International Monetary and Financial problems, a n d Chairman of t h e Niational
Advisory Council Staff Committee. The personnel of t h e Division perform staff
a n d secretariat functions o f t h e Council and represent t h e Treasury in t h e Counch's
i n t e r d e p a r t m e n t a l work.
BUREAU O F N A R C O T I C S 2
T h e Bureau of Narcotics is charged with t h e investigation, detection, and
prevention of violations of t h e Federal narcotic a n d m a r i h u a n a laws and of t h e
Opium Poppy Control Act of 1942, a n d related s t a t u t e s . I t issues permits for
importation of t h e crude narcotic drugs a n d for'exportation a n d in-transit move1 Shortly after the close of thefiscalyear transferred to the newly created Office of International Finance.
2 Further Information concerning narcotic drugs is available in the separate report of the Comjnissioner of
Narcotics.
''
. '
133
REPORT OF THE SECRETARY OF THE TREASURY
ment of narcotic drugs and preparations, and has authority 'to issue licenses,
under certain conditions, for the production of opium poppies and manufacture
of opium products therefrom.- It cooperates with the Department of State in
the discharge of the international obligations of the United States concerning the
traffic in narcotic drugs and with the several States in the suppression of the
abuse of narcotic drugs and marihuana in their respective-jurisdictions.
During the fiscal year 1947 the Bureau of Narcotics directed its activiiies
toward the suppression of the illicit traffic in narcotic drugs and marihuana and
the control of the legitimate manufacture and distribution of narcotics through
the customary channels of trade. The total quantity of narcotic drugs seized
in the internal ihicit traffic amounted to 1,200 ounces in comparison with 4,172
ounces seized in 1946. Seizures of marihuana amounted to 700 pounds bulk,
' 7 pounds seeds, 10,011 cigarettes, and 845 growing plants as compared with 326
pounds bulk, 2 pounds seeds, 13,967 cigarettes, and 15,363 growing plants in 1946.
The table following shows for the fiscal year the number of violations of the
narcotic and marihuana laws by persons registered with collectors of internal
revenue to engage in legitimate narcotic and marihuana activities and by persons
who have not qualified by registration to engage in such activities, as reported by
Federal narcotic enforcement officers.
Numher of violations of the narcotic and marihuana laws reported during the fiscal
year 1947, with their dispositions and the penalties
N a r c o t i c laws
N o n r e g i s t e r e d persons
Registered persons
Federal
court
.1
-
1,162
323
1, 564
500
434
536
669 .
3, 226
1, 293
1
3
903
203
266
144
286
351
31
60
6
1
1
42
11
8
4
7
12
2
8
181
21
2
1
362
83
47
71
80
94
10
20
P e n d i n g J u n e 30,1947
-
346
2,144
960
324
1,082
333
OT
fl •
3
><
Sentences i m p o s e d :
Federal
Joint
--.
Total.:--
.---
Fines imposed:
Federal
Joint
-
S t a t e court
62
9
T o t a l disposed of- _ -
2
Federal
court
336
66
2
-
S t a t e court
Nonregistered persons
304
29
P e n d m g J u l y 1,1946
R e p o r t e d d u r i n g 1947:
Federali
Joint 1
Convicted:
Federal
Joint
Acquitted:
Federal
Joint
Dropped:
Federal
Joint
Compromised: 2
Federal
Joint
Federal
court
S t a t e court
T o t a l t o b e disposed
oL .
Marihuana law
.a
"fl
i
OT
OT
OT
.a
• fl
OT
0
100.
20
7
6
••••9'
2 1,694
432
121
1
9,
2 2,126
.-._.4
2
0
>^
212
182
4
8
395
^
376
478
11
5
14
63
854
4
78
1
4
8
$31, 950
300
$64, 956
10, 023
$2, 383
866
$10, 229 .
3, 684
$450
2,392
32. 250
64.979
3.248
13.913
2,842
Total
'
•
1 Federal cases are made by Federal officers working independently while joint cases are made by Federal
and State officers working in cooperation.
2 Represents 68 cases which were compromised in the sum of $12,165.
134
REPORT OV" THE SECRETARY OF THE TREASURY
The importatio'n, manufacture, and distribution of opium and its derivatives,
as heretofore, were subject to a system of quotas and allocations designed to
secure their • proper distribution for medical needs. Additional quantities of
opium were imported during the year. Coca leaf imports were sufficient for
medicinal purposes, and additional supplies were avahable for the manufacture
of nonnarcotic flavoring extracts.
Exports of narcotic drugs increased as compared with 1946, and remained
considerably above the prewar le'vel. Manufacture of opium derivatives continued high to meet export requirements and the increased medical use of codeine.
' The shortage of addiction drugs in the illicit markets was reflected by a large
increase in.thefts from wholesalers, retailers, and practitioners entitled to them
for medicinal needs.
Registrations under the narcotic and marihuana laws during the year are '
shown by classes in the following table.
Registrations under the Federal narcotic and marihuana laws, June SO, 1947
Narcotic
law
I m p o r t e r s , m a n u f a c t u r e r s , producers, a n d c o m p o u n d e r s
Importers, mannfactnrers, and compounders . P r o d u c e r s (growers)
Dealers
- -.
Wholesale
Retail...
'
Practitioners
Dealers in a n d m a n u f a c t u r e r s of u n t a x e d p r e p a r a t i o n s
Users for purposes of research, i n s t r u c t i o n , or analysis
Total
-
Marihuana
law
149
4
657
120
_'
.
._ -
1,152
48,403
178,991
1 159,452
166
348
103
388,313
1,232
I Includes registrations for which payment of occupational tax is not required under law, because also
registered in some other class.
DIVISION OF PERSONNEL
The Division of Personnel is charged with the over-all direction and supervision
of the personnel program of the Department which is administered through
delegation of authority to the heads of the bureaus, offices, and divisions to act
in accordance with policies, practices, and procedures established for their guidance. Advice and assistance are rendered to the personneL officers of these components in matters relating to recruitment and appointments, reductions in force,
reassignments of veterans and career employees, employeee grievances and discipline, efficiency ratings and appeals, leave and retirement", wage surveys, development of standards for position-classification, and conduct of classification surveys.
The health program is administered under the supervision of the Division.
The Division represents the Department in negotiations with the Civil Service
Commission and other central agencies on questions concerning personnel administration.
COMMITTEE ON PRACTICE
The Committee on Practice is an administrative and judicial body in charge
of the enrollment of attorneys and agents for practice before the Treasury Department. It 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 iristitutes
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.
REPORT OF THE SECRETARY OF THE TREASURY
135
The following statement summarizes the work of the Committee for the fiscal
year 1947:
Attorneys and agents:
Applications for enrollment approved
•.
Applications for enrollment disapproved
Applications withdrawn on advice of committee
Number
4,814
20
87
-
-
-
Complaints against enrolled persons:
Pending July 1, 1946
—-Disposed of:
Resignations submitted, in order to evade proceedings in disbarment or suspension,
and accepted by the Committee
..
Reprimands.
^
:
Reinstated to roll...1
-Stricken from roll by Coraraittee.—
-Pending June 30,1947
Customhouse brokers:
Apphcations for licenses approvedApplications withdrawn
•
Licenses canceled
Licenses revoked
.
Reinstatements
17
5
1
2
1
.
-
1.
---
;
9
8
72
5
9
1
1
Since the organization in 1921 of the Committee on Practice.76,761 applications
for enrollment have been approved and 801 disapproved. Two hundred and
fifty-six practitioners have been disbarred from further practice before the Treasury
Department, 140 have been suspended from practice for various periods, and 184
have been reprimanded,
DIVISION OF RESEARCH AND STATISTICS i
The Division of Research and Statistics in the Office of the Secretary serves
as a technical staff for policy-forming officials of the Department on matters
relating to Treasury financing, public debt management, and various general
economic problems arising in connection with Treasury activities.
For the use of the Secretary in making his financing decisions and in formulating
debt-management policies, the Division prepares a variety of analyses. It draws
up alternative plans in detail for each financing operation. It then analyzes the
results of the operation in order to gauge its effectiveness and secure guidance for
future planning. It provides estimates of the income and savings position of
different classes of investors, together with information on the amounts of the
outstanding public debt already held by these investors. It analyzes the relative
desirability of cash pay-offs to and additional borrowing from each class, and the
type of security best suited to the requirements of each class. It reviews the
outlook for financing requirements during an appropriate period ahead, and
suggests various financing programs which would take care of these requireinents.
It recommends terms for the particular securities which might be offered, covering
such characteristics as rate of interest, maturity, call period, negotiability,
eligibility as collateral, redemption privileges accorded to holders, and restrictions
as to the amount of purchases or holdings by different classes of investors. It
analyzes the relation of these securities to the maturity schedule and interest costs
of the public debt, the effect of their issuance upon the market prices and ownership distribution of outstanding Government securities, the impact of the Treasury's public debt operations on the credit structure and general economy of the
country, and the long-range effects on the economy of present financing decisions.
In connection with its work in Treasury financing, the Division is charged with
the duty of keeping policy-forming officials of the Department posted on the
outlook for Federal receipts. In addition, the facilities of the Staff are utilized
by the Secretary for the preparation of official estimates of Government receipts
for incorporation in the President's Annual Budget Message and in intervening
Budget revisions. Similarly, estimates of the revenue effects of proposed and
pending legislation are prepared; these are requested both by Treasury officials
and by committees of Congress.
Technical mathematical analyses needed in connection with financing and
public debt problems are also prepared. This work is under the supervision of
the Gpvernment Actuary, who is an Assistant Director of the Division of Research
and Statistics. He is responsible for reports on actuarial matters involved in
I Shortly after the close of the fiscal year transferred to the newly created Office of the Technical Staff.
136
REPORT OF THE SECRETARY OF THE TREASURY
Treasury operations, and prepares actuarial estimates required by statute with
respect to the operations of several Government trust funds. The Secretary of
the Treasury is charged with the duty of handling the investments and other
operations for most of these funds.
DIVISION OF TAX RESEARCH
The Division of Tax Research assembles the facts and prepares the economic,
statistical, and technical analyses needed (1) to aid the Secretaxy in the formulation of Treasury tax policy, and (2) to provide information on various tax
matters, as requested, for the President, members of Congress, various Government officials, and the public. The Division provides, on behalf of the Secretary,
material to aid the Ways and Means Committee of the House of Representatives,
the Finance Committee of the Senate, and the Joint Committee on Internal
Revenue Taxation in their consideration of tax proposals and legislation. In its
. work, the Division consults with the Bureau of Internal Reveriue on administrative matters and with the Office of the Tax Legislative Counsel on legal matters.
The Division's functions include the preparation of basic surveys of the tax
problems of the Federal Government, the devising of alternative methods of
meeting revenue requirements," and the development of methods of adjusting the
tax system to changing economic conditions. The tax system is analyzed with
a view to obtaining revenue yields large enough to meet prospective revenue
requirements and to making adjustments which will be fair'to taxpayers and will
avoid undesirable economic effects. Individual taxes are studied (1) to determine their effects on particular groups of taxpayers, (2) to avoid inequity among
taxpayers within a given group, (3) to ascertain and develop methods of meeting
administrative and compliance problems, and (4) to devise ways of integrating
particular taxes with the tax system as a whole. These studies require econornic
analyses of the effects of each tax; technical analyses of the more complicated
.probleiris inherent in various tax measures; and statistical analyses of the distribution of the burden of specific taxes, the total Federal tax load, and the
<5ombined Federal, State, and local burden.
The interrelationships of Federal, State, and local taxes are studied with a
view to possible improvements in intergovernmental fiscal relations. Specific
State and local taxes are also examined to deteririine the combined effect of such
taxes and Federal taxes and to assure the Federal Government of the benefit of
State and local tax experience. Likewise, to gain the benefit of foreign experience
and to compare policies, tax studies are made of foreign countries.
The Division is also charged with general responsibihty respecting the assembling and publication of statistics pertaining to Federal taxation. Correspondence
relating to matters of taxation not involving legal questions is handled by the
Division. The Division also participates in conferences with taxpayers who call
special problems to the attention of the Treasury Department,
During the fiscal year 1947 the Division continued to work primarily on the
problems of postwar Federal tax revision. The division prepared factual, material and analyzed various proposals for tax revision, including bills for reduction of individual income taxes which were considered by the Congress, Studies
of a number of major tax items were carried on in the fields of .business taxes,
individual income taxes, excise taxes, ^estate and gift taxes, and social security
taxes. (For a list of the major items under study, see the statement of the
Secretary before the Ways and Means Committee, May 19, 1947, which is reproduced as exhibit 34.)
UNITED STATES COAST GUARD
The functions of the Coast Guard, as the Federal maritime police, embriace in
general terms maritime law enforcement, saving and protecting life and property,
safeguarding navigation on the high seas and navigable waters of the United States,
and readiness for military operations. As the final step in the return of the Coast
Guard to the Treasury Department from wartime operation under the Navy
Department, the Navy directional control of the following Coast Guard functions
.was terminated on July 1, 1946: Search arid rescue functions, maintenance and
operation of ocean weather stations, and air-sea navigational aids in the Atlantic^
continental United States, Alaska, and Pacific east of Pearl Harbor.
Coast Guard operations during the fiscal year 1947 fell into four major categories:
The saving of life and property and rendering assistance to maritime coriiirierce;
REPORT OF THE SECRETARY OF THE TREASURY
137
t h e maintenance of ocean weather stations in the Atlantic and Pacific Oceans and
t h e I n t e r n a t i o n a l Ice Patrol in t h e N o r t h Atlantic Ocean; the maintenance of aids
t o navigation for surface vessels a n d aircraft flying over water routes; and the
administration of laws to promote t h e safety and efficiency of the merchant marine
including the inspecting of vessels and equipment, t h e examining and licensing of ,
m e r c h a n t marine personnel, a n d t h e investigating of maritune casualties.
ASSISTANCE
OPERATIONS
T h e assistance rendered by Coast Guard stations, vessels, and aircraft during
t h e year is reflected in the following statistics:
Major assistance:
Value of vessels assisted
$174, 343, 680
Value of cargoes of vessels assisted
$11, 313, 017
Lives.saved or persons rescued from peril
5, 755
Minor assistance instances
3, 556
Value of vessels including cargoes assisted in ice-breaking activities on t h e Great Lakes
.:-$649, 341, 217
T h e t e r m ''major assistance" is used to characterize operations involving t h e
rescue of persons from water or from drifting ice, the removal of persons from
endangered vessels, t h e towing to safety of vessels on which personnel are endangered, and, during floods, t h e removal of persons to safety when danger of
drowning threatens. When Coast Guard aircraft are emplo3^ed, ''major assistance"
includes open sea landings and take-offs under abnormally hazardous conditions.
Outstanding among t h e aviation search and rescue missions during.the year was
t h e evacuation by Coast Guard helicopters a n d planes of 18 badly injured survivors of t h e crash of a Belgian t r a n s p o r t aircraft in the wilds of Newfoundland.
T h e assistance rendered by t h e Coast Guard icebreaker Mackinaw, aided by
reconnaissance flights of Coast G u a r d aircraft, in t h e spring of 1947 aided in t h e
early opening of t h e navigation season in t h e Great Lakes.
T h e 290-foot Coast Guard icebreaker Northwind was temporarily assigned to t h e
N a v y to participate in an expedition into t h e Antarctic, She was orie of t h e two
major icebreaking vessels in t h e task force.
INTERNATIONAL I C E
PATROL
T h e International Service of Ice Observation a n d Ice Patrol in t h e N o r t h
Atlantic was commenced early in F e b r u a r y 1947 with preliminary aerial survey
flights by planes based a t Argentia, Newfoundland, Extensive use of radar a n d
loran m a d e it possible for t h e planes t o carry out this mission in an area of prevailing storms and fog. These ice observation flights were continued through J u n e .
An ice observation cruise was conducted by one cutter in t h e waters of the Labrador
C u r r e n t north of t h e patrol area. J u s t before t h e close of the fiscal year, t h e
surface patrol was inaugurated a n d it was necessary to cut short the ice observation
cruise to reinforce t h e patrol vessels.
A I D S TO N A V I G A T I O N
On J u n e 30, 1947, t h e Coast Guard maintained 36,465 aids to navigation in
t h e navigable waters of t h e United States, its Territories and possessions. Thes'e
aids include a great variety of devices ranging from simple, unlighted, wooden
spar buoys to hghtships a n d complex loran networks. During t h e year, 1,511
new aids were established and 1,925 aids were discontinued, resulting in a decrease
of 414 in t h e t o t a l number maintained on J u n e 30, 1946. This decrease was due
to readjustments to meet peacetime needs and consisted primarily in t h e discontinuing of aids established during t h e war to m a r k channels leading to t e m porary Army a n d N a v y installations^ especially a t wartime advance bases.
M A R I N E I N S P E C T I O N AND S A F E T Y
MEASURES
Continued progress was achieved during t h e year in returning to a peacetime
basis t h e Coast Guard activities with respect t o merchant vessel inspection a n d
promotion of safety a t sea. I n carrying out t h e duties vested in the Coast Guard,
a n n u a l inspections were completed on 7,636 vessels of t h e United States, aggregating 25,448,625 gross tons. There were 7,287 drydock examinations of vessels,
138
REPORT OF THE SECRETARY OF THE TREASURY
aggregating 33,228,631 gross tons. Reinspections were conducted on 2,347 vessels,
comprising a gross tonnage of 8,012,742, a n d special surveys were completed on
164 passenger vessels, not classed by a classification society. Special examinations
were made on 479 passenger vesselsv a n d ferries, a n d one officer inspected t h e
S . S . America during a round trip to Europe, for t h e purpose of observing compliance with safety regulations a t sea.
T h e most serious casualty investigated was t h a t occurring a t Texas City, Tex.,
on April 16, 1947, when a fire and explosion on board t h e French S. S, Grandcamp
spread to other vessels a n d shore installations a n d resulted in loss of life a n d
destruction of property in disaster proportions. T h e vessel was engaged in
loading a cargo of a m m o n i u m n i t r a t e fertilizer a t t h e time. As a result of t h e
investigation, an interagency committee was appointed to determine t h e characteristics of a m m o n i u m nitrate a n d to recommend a national policy for assuring
its safe handling.
MERCHANT MARINE
PERSONNEL
Merchant Marine Investigating Units in major domestic ports a n d M e r c h a n t
Marine Details in certain foreign ports, where there was a large volume of American
shipping, continued to operate in t h e administration of discipline of m e r c h a n t
marine personnel as required byRevised S t a t u t e s 4450, as amended (46 U. S. C.
• 239). In May all M e r c h a n t Marine Details with t h e exception of t h e London a n d
Manila units were ordered decommissioned b u t were reactivated in eight ports
in June upon request of t h e D e p a r t m e n t of State, which agreed to bear all expenses.
T h e authority for commissioned officers of t h e Coast Guard to preside a t hearings
was terminated on J u n e 10, 1947, as a result of t h e provision of t h e Administrative
Procedure Act which requires t h a t examiners shall be appointed p u r s u a n t to Civh
Service laws a n d regulations. Because of the lack of funds to hire such civilian
examiners, hearings under Revised S t a t u t e s 4450 have not been held since J u n e
11, 1947. During t h e year, 2,729 hearings were held involving cases of negligence, incompetence, a n d misconduct. These hearings resulted from investigations of 14,403 cases.
T h e licensing a n d certificating of m e r c h a n t marine personnel were continued,
resulting in t h e issuance'of 175,852 documents. I n the process of regulating t h e
orderly conversion of t h e m e r c h a n t marine from wartime to peacetime operation,
24,786 waivers of manning requirements were issued, 4,684 crew shortage reports
were received, a n d 19,328 sets of shipping articles were execu£ed.
OTHER ENFORCEMENT
ACTIVITIES-
Law enforcement activities for t h e fiscal year, in addition to the enforcement
of Federal laws generally on t h e high seas and territorial waters of t h e United
States, included, in particular, t h e enforcement of t h e anchorage regulations, the
Oil Pollution a n d Refuse Acts, t h e customs laws, the H a l i b u t Act, and Alaskan
fisheries laws generally, a n d t h e navigation laws. Cooperation was extended to
all Federal, as well as m a n y State and municipal law enforcement agencies, b u t
mainly with t h e Bureau of Customs, Alcohol T a x Unit, a n d Secret Service.
C O N S T R U C T I O N AND
DEVELOPMENT
Two new modern lightships were completed a n d commissioned during the fiscal
year. Six 186-foot steam t y p e mine planters, eight 132-foot diesel powered
covered lighters, and four 65-foot diesel powered Army freight boats were acquired
a n d converted primarily for servicing aids to navigation.
Work was continued on adapting existing types of helicopters to meet special
requirements of the Coast Guard. T h e great value of t h e helicopter in ice operations a n d rescue work was thoroughly demonstrated in 1947. Some progress
was made toward t h e solution of blind flight in helicopters, a n d better equipment
for water landings was developed.
I n t h e support of 22,220 Coast Guard shore structures, 869 major projects for
new construction or repair work a n d approximately 3,000 minor projects of this
n a t u r e were undertaken.
REPORT OF TPIE SECRETARY OF T H E TREASURY
139
At t h e Coast Guard Yard, Curtis Bay, Baltimore, Md., a new m e t h o d of small
boat construction, utilizing laminated structural members, was developed t o save
weight and increase strength and flexibility. Service tests of these boats are
beirig conducted.
I n April and May 1947, a t t h e International Meeting on Marine Radio Aids
to Navigation, t h e Coast Guard demonstrated t h e operation, accuracy, a n d general
applicabhity of radar, loran, arid other electronic developments. This meeting
was held in New Yor.k, N . Y., and New London, Conn., under t h e auspices of
t h e D e p a r t m e n t of State.
Among the aids to navigation under development or test during the year were
single unit range lights which by variation of color or characteristic will indicate
the relative position off t h e range line; an u n a t t e n d e d lightship; a new design of
a one million candlepower beacon for lighthouses; a n d a special t y p e of unlighted
third class buoy for use in strong currents.
A device, known as a sound operated fog signal was installed a t West P o i n t
Light Station on t h e H u d s o n River i n . M a r c h 1947. This aid t o navigation
requires no operator a n d can be set in operation by t h e sound from t h e whistle
or fog horn of a vessel navigating.the river.
During t h e year t h e Coast Guard tested a s t a n d a r d Army scout car a n d developed modifications decreasing its weight and increasing its mobility in sand and
rough terrain. T h e resulting performance makes this vehicle a valuable piece
of equipment for rescue and patrol work a t lifeboat stations.
Similarly, the war-developed amphibious vehicle Dukw was modified to improve
its seaworthiness in heavy surf. Exhaustive tests were conducted which proved
t h e capabilities of these modified vehicles for beach rescue operations.
Cognizant of t h e numerous hull failures in welded m e r c h a n t vessels, a n d p u r s u a n t to t h e s t a t u t o r y responsibility of t h e Coast Guard for t h e certification of
t h e worthiness of m e r c h a n t vessels, t h e Secretary of t h e Treasury in July 1946
established the Ship Structure Committee to continue t h e work of a wartime board
in t h e improvement of hull structures. This objective is being achieved t h r o u g h
t h e coordination of the. research efforts of t h e m e m b e r agencies a n d private Indust r y a n d b}^ t h e establishment of specific research projects in Government a n d
university laboratories t h r o u g h o u t t h e country. T h e Engineer-in-Chief of t h e
Coast Guard was agairi designated as chairman a n d membership includes representatives of t h e Transportation Corps, Army D e p a r t m e n t ; Bureau of Ships,
N a v y D e p a r t m e n t ; Maritime Commission; and t h e American Bureau of Shipping.
Close liaison has been established with the National Research Council, American
I r o n and Steel I n s t i t u t e , Welding Research Council, and t h e British Admiralty
Shipweiding Committee.
I t is noteworthy t h a t t h e Ship Structure Committee is a cooperative effort
b y t h e Federal m a r i t i m e agencies a n d t h e Marine Classification Bureau to solve
structural problems which are common to all.
'
COAST GUARD
AUXILIARY
During t h e fiscal year 1947, enrollment in t h e Coast G u a r d Auxiliary was reduced from 44,963 to 21,538. A concentrated effort was m a d e to reestablish t h e
organization in accordance with its original concept; namely, a nonmilitary organization of t h e owners of motorboats, yachts, private aircraft, and radio stations
who are pledged to assist t h e Coast Guard on a voluntary basis in the promotion
of maritime safety a n d during emergencies. Members of t h e Auxihary rendered
invaluable service to t h e Coast Guard by providing personnel.to supplement
regular personnel in manning stations a n d small craft during emergencies, in
patrolling marine regattas, etc.
On J u n e 30, 1947, there were 6,667 motorboats a n d yachts, 121 private aircraft, and 88 a m a t e u r radio stations in t h e organization.
140
REPORT OF THE SECRETARY OF THE TREASURY
PERSONNEL
On J u n e 30, 1947, t h e m i h t a r y personnel strength of t h e Coast Guard on active
d u t y consisted of 2,195 commissioned officers (848 regular, 775 temporary service,
572 reserve), 532 w a r r a n t officers (184 regular, 340 t e m p o r a r y service, 8 reserve),
227 cadets, and 15,730 enlisted men.
T h e authorized force of civihan employees a t Coast Guard H e a d q u a r t e r s on
J u n e 30, 1947, n u m b e r e d 823. I n t h e field service there were 1,477 salaried
personnel, 2,243 wage board employees, a n d 756 lamplighters.
Training activities continued a t a steady pace t h r o u g h o u t t h e year, being
marked mainly by the increase in recruit a n d p e t t y officer training which was
occasioned by t h e recruiting drive carried out in t h e late winter a n d spring of t h e
year.
Officer candidate training, coriducted primarily a t t h e Coast Guard Academy,
returned to a normal peacetime basis with all wartime activities t e r m i n a t e d .
There was iio graduation a t t h e Academy in 1947, because of the reestablishment
of the regular 4-year course for cadets. ' During t h e year, 709 candidates took t h e
entrance examination for t h e Academy a n d 147 were expected to enter in July as
cadets. T h e summer training cruise aboard t h e cutters Campbell and Eagle left
New London, Conn., in June, with stops scheduled a t Bermuda, West I n d i a n
ports, and ports on t h e east coast of the United States.
During t h e year, 10 officers completed postgraduate training in various specialties
a n d 34 were assigned to such training; 107 officers completed short courses a n d
refresher courses a t various training schools; 2,237 men received recruit training;
a n d 1,949 men were g r a d u a t e d from t h e various Coast G u a r d a n d N a v y p e t t y
officer training schools.
Of t h e 17,401 men whp applied for enlistment in t h e Coast Guard, 6,187 were
enlisted, 4,984 were rejected physically, 4,821 were rejected for other causes, and
1,409 were accepted b u t failed to enhst.
D I S T R I C T S , F A C I L I T I E S , AND E Q U I P M E N T
T h e F o u r t h Coast G u a r d District, which comprised p a r t s of New Jersey,
Pennsylvania, a n d Delaware, with the district office located in Philadelphia, Pa,,
was abohshed on J u n e 30, 1947. T h e functions, responsibflities, a n d facilities in
this area were transferred to t h e Commander, Third Coast G u a r d District, whose
office is m a i n t a i n e d in New York, N . Y. At the same time, t h e Seventeenth
Coast G u a r d District was abolished a n d t h e Territory of Alaska, which it comprised, was added to the T h i r t e e n t h Coast G u a r d District which includes Washington, Oregon, I d a h o , M o n t a n a , and Wj^oming. These amalgamations reduced
the number of Coast G u a r d Districts from 14 to 12.
T h e N o r t h Atlantic Ocean P a t r o l was also discontinued as a separate c o m m a n d
on. J u n e 30, 1947. All functions of t h a t command, including the operational
control of units assigned to N o r t h Atlantic Weather P a t r o l , International Ice
Patrol, a n d t h e Greenland Patrol, which h a d previously been exercised from
Argentia, Newfoundland, were transferred to t h e Commander, First Coast G u a r d
District, in Boston, Mass.
On J u n e 30, 1947, t h e floating units actively in commission consisted of 120
cutters of various types, 35 patrol boats, 37 lightships, 15 harbor tugs, a n d 25
buoy boats. I n addition, there were 174 m o t o r lifeboats, 1,441 motorboats, a n d
2,666 nonpowered small craft in operation.
Authorized shore units as of J u n e 30, 1947, included 9 air stations, 10 operating
bases, 180 lifeboat stations, 499 light stations, a n d 66 radio stations.
I n s u p p o r t of t h e maintenance of t h e vessels, aircraft, and shore establishments
were 1 y a r d a t Curtis Bay, Md., 13 repair bases, 69 depots, and 3 supply depots.
D u r i n g t h e year surplus vessels valued a t $9,955,039 a n d other surplus property
valued a t $7,972,829 were disposed of.
F U N D S A V A I L A B L E , O B L I G A T I O N S , AND B A L A N C E S
During t h e fiscal year 1947 t h e sum of $6,205,100 was e x p e n d e d . u n d e r t h e
provisions of t h e Mustering Out P a y m e n t Act of 1944. T h e Coast Guard T e r m inal Leave Unit paid $34,737,435 t o 142,608 claimants for settlement of unused
leave under t h e Armed Forces Leave Act of 1946.
T h e following table shows t h e a m o u n t s available for t h e Coast Guard during
the fiscal year 1947 a n d t h e a m o u n t s of obligations a n d unobligated balances:
REPORT OF THE SECRETARY OF THE TREASURY
Funds available
Appropriation title or fund
Current operating appropriations:'
Salaries, Office of Commandant, U . S . Coast Guard, 1947Pay and allowances. Coast Guard, 1947
General expenses. Coast Guard, 1947
-Civilian eraployees. Coast Guard, 1947
Retired pay, former Lighthouse Service, Coast Guard,
1947
Salaries, merchant marme mspection, Coast Guard, 1947-Salaries and expenses, merchant marine Inspection, Coast
Guard, 1947 ..
-Subtotal
.
_
-----
Construction appropriations and prior year imobligated
balances:
Acquisition of vessels and shore facihties, Coast Guard
Eraergency construction, vessels and shore facilities.
Coast Guard
- -_
Establishing and improving aids to navigation. Coast
Guard
Special projects, aids to navigation. Coast GuardSpecial projects, aids to navigation, Lighthouse Service,
Coast Guard
--Site and construction of Coast Guard station, act of June
29,1936
—
.Subtotal..-
---
Total appropriations
-
-
Miscellaneous funds:
Payments, Armed Forces Leave Act of 1946 (allotment to
Treasury, Coast Guard)
--Administrative expenses,* payments, Armed Forces Leave
Act of 1946 (allotment to Treasury, Coast Guard),
1947 and 1948 .
.
Net total
obligations
$1,935,100 . $1,913,256
78,860,000
78,482,965
32, 635, 000
31,460,325
2, 607, 400
2, 575,019
976,000
485, 600
958,046
473,965
141
Unobligated
balances
$21,845
377,036
1,174, 676
32,381
17,954
11,536
2,049,000
2,009, 791
39,209
119, 548,000
117,873,.366
1, 674, 634
12, 318, 620
2,087,517
44, 943
10, 660
34,283
3,919,156
357, 514
1,004,051
186, 995
2,915,106
170, 619
62
110,231,103
52
- 5 , 602
5,602
16, 640, 286
3, 283,673
13,366, 612
136,188,285
121,157,039
15,031,246
46,800,000
34, 737,436
12,062, 665
300,000
231,969
68,031
..
47,100,000
34,969, 404
12,130, 596
Working funds established by allotments from other Govemment agencies:
Navy Department
..
• -War DepartmentFederal Security Agency
. . ._
1, 205, 660
30, 000
155,000
699,478
30, 230
134, 601
606,182
-230
20,399
Total miscellaneous funds
Total working funds .
..
Grand total
.,.-
......,„„.-.
1,390,660
864,309
184, 678, 945
156,990, 762
626,351 •
27,688,193
1 Includes $9,309,270 rescinded by Second Supplemental Appropriation Act, 1948.
UNITED STATES SAVINGS BONDS DIVISION
The tJnited States Savings Bonds Division is charged with the responsibility of
promoting the sale of United States savings bonds. The purpose of the sale of
savings bonds is twofold. On the part of the investor, the firiancial security of
individuals is furthered by regular investment of funds periodically available.
On the part of the Government, the funds so absorbed aid in the program designed
to reduce bank holdings of Government securities as much as possible. In this
way savings bonds will be substituted for a part of the bank-held debt. As a
result, the ownership of the debt is widened, the structure of the debt is improved,
and a contribution is made to the control of inflationary pressures.
During the fiscal year 1947, the Savings Bonds Division conducted two special
promotional campaigns. The first extended from November 11, Armistice Day,
to December 7, 1946, the anniversary of the attack on Pearl Harbor. The second
campaign took place during June and July 1947, apd inaugurated the bond-amonth plan. This plan provides for the systematic purchase of savings bonds
through banks, by having depositors authorize their banks to make deductions
periodically from their accourits, and to purchase savings bonds for them with the
funds deducted.
142
REPORT OF THE SECRETARY OF THE TREASURY
One of the major projects of the Savings Bonds Division is the payroll savings
plan, which provides for automatic payroll deductions to be applied to the
purchase of savings bonds. The Payroll Savings Division works closely with
large companies and assists State field offices in payroll plan promotion. There
were, as of June 30, 1947, some 5 million employees on payroll plans purchasing
about $100 million of savings bonds monthly. The Federal Payroll Savings
Section, cooperating with the Interdepartmental Savings Bonds Committee,
promotes savings bond sales to Federal employees.
The other activities of the United States Savings Bonds Division are carried
on by the Field Liaison Section, the Labor Organizations Section, the Banking and
Investment Division, the Special Field Activities Division, the Information
Division, and the Administrative Division. In the Special Field Activities
Division, the Education Section, the Women's Section, the Agricultural Section,
and the Interracial Section promote the sale of savings bonds within their respective spheres of activity. These several sections prepare the basic promotional
material, and direct and coordinate the field activity of the 48 State offices.
. The Information Division, through its Advertising, Press, and Radio Sections,
is responsible for securing the cooperation of pubhcity sources; for stimulating
national advertising by radio, newspapers, magazines, billboards, and other
media; and for the designing of posters, pamphlets, leaflets, and descriptive
literature used in the sale of savings bonds.
The Administrative Division directs the selection of personnel, equipment,
space rental, contractual services, voucher audit, and efficiency surveys, and
develops office practices and procedures.
Detailed figures on savings bonds and stamps will be found on pages 27 to 32
and 403 to 416.
UNITED STATES SECRET SERVICE
The United States Secret Service is responsible for the protection of the President of the United States and members of his familj'-, of the President-elect, of
certain buildings, and of obligations and securities of the United States in production, transit, and storage. It is charged with the suppression of counterfeiting,
forging, and alteration of obligations and securities of the United States and
foreign countries, and of counterfeiting of coins; and with investigations of forged
endorsements on, or the fraudulent negotiation bf. United States Treasury checks
and bonds, of loss of valuables in shipments by Government agencies, and ofapplicants for positions in certain agencies of the Treasury Department,
PROTECTIVE AND SECURITY ACTIVITIES
The security work of the Secret Service was intensified with the opening of
the White House to the public on November 14, 1946. From that date through
June 30, 1947, 307,834 visitors were shown through the White House. In one
case Secret Service agents arrested a man who called at the White House and
was discovered to be a fugitive from a New Jersey hospital for the insane. He
was returned to the institution.
In February 1947, Secret Service agents visited Mexico City, Mexico, to make
plans for the visit of the President in March. Another trip outside the United
States required considerable planning by the Secret Service when the President
and his family visited Ottawa, Canada, in June.
The Uniformed Force of the Secret Service protected nearly $198 bhlion in
currency and coin, stamps, bonds, and other Government securities in transit,
and approximately $20 million of uncanceled United States savings stariips at
the Furniture Mart in Chicago. It safeguarded the production of Allied military
certificates and Siamese currency (see page 198 of the 1946 annual report) at
Boston, Mass., and the production of about 15 million armed forces leave bonds.
REPORT OF THE SECRETARY OF THE TREASURY
ENFORCEMENT
143
ACTIVITIES
Thirteen counterfeit note plants were seized during the year. Note counterfeiting reached almost prewar proportions by an influx of counterfeit American
money from Europe. Of a total of $246,176.25 in bogus bills confiscated by
Secret Service .agents, $59,i580 represented .counterfeits made abroad. Thirty new
counterfeit note issues appeared during the fiscal year, of which 23 were of foreign
origin. Practically all of the alien contraband was detected and removed from
circulation before it reached United States storekeepers.
Counterfeit coins seized during the year totaled $9,214.79. Losses to victims
of counterfeit notes and coins in the United States totaled $62,136.34 as compared .
with $39,171.42 during 1946.
There were 92 arrests and 69 convictions for violation of the counterfeiting
laws. Arrests increased 84 percent over the previous year,
A group of counterfeiters was sentenced in New Jersey for the manufacture and
sale of $115,640 in bogus $20 notes, the plates for which were recovered from the
bottom of the Passaic River by a Navy diving crew cooperating with the Secret
Service. The ringleader was sentenced to serve 5 years and his seven accomplices received sentences ranging from 2 years' probation to 5 years' imprisonment.
There were 1,920 persons arrested for check forgeries during the year, with
1,824 convictions. Secret Service investigated 28,460 forged Treasury checks
representing over $2 million, and located the violators in 60,9 percent of the
forgeries.
A university student was arrested for the theft and negotiation of 50 Government checks stolen from other students. He was sentenced to 2 years in a Federal
penitentiary, and later sentenced to serve 2}^ to 4 years in State prison after completing the Federal term.
With the assistance of British officials. Secret Service agents arrested, at
Bermuda, a former U, S. Army captain. Before leaving for Bermuda with his
bride, the young man altered a $100 U. S. Treasurer's check to represent $28,000,
endorsed it, and turned it over to his father-in-law for deposit, stating that the
check covered 4 years' accuinulated Army pay. Returned to the United States,
the offender was arraigned before the U. S. Commissioner at New York and held
in default of $5,000 bail. He is now awaiting trial.
Thefts and forgeries of savings bonds comprised much of the Secret Service
enforcement work for the year. Agents completed investigations of 15,709 forged
bonds with a maturity value of nearly $2 million, and located the forgers of 72
percent of the bonds. There were 306 arrests for bond forgery.and 273 convictions.
Fines in criminal cases aggregated $59,084.71 and jail sentences totaled about
2,558 years. Additional sentences of 2,786 years were suspended or probated.
The Secret Service completed 47,803 criminal cases. Noncriminal cases investigated totaled 2,399, making a total of 50,202 investigations completed for the year.
The following tables present data relating to the activities of the Secret Service.
Counterfeit money seized, fiscal years 1946 and 1947
'
1946
Counterfeit and altered notes seized:
After being circulated _
Before being circulated . . : . . . . . . .
Total
- -
..
Grand total
--
Percentage
Increase or
increase or
decrease (—) decrease
(-)
$40,061. 50. $62,413.00
26,357.80 183, 763.26
Total
Counterfeit coins seized:
After being circulated
Before being circulated
1947
-
65,419.30
246,176.25
8,339.37
504.40
7,916.09
1, 299.70
,
$22,361.50
168,405.46
65.8
624.7
180,766.96
276.3
-424.28
796.30
-6.1
157.7
8,843. 77
9,214. 79
371,02
4.2
74, 263.07
265, 391.04
181,127.97
243.9
144
REPORT OF THE SECRETARY OF THE TREASURY
Numher of investigations of criminal arid noncriminal activities, fiscal years 1946
and 1947
1946
Criminal cases:
Making or passing:
Counterfeit notes _,•.
Counterfeit coins
Altered obligations . - Forgery of Government checks
Stolen or altered bonds
Protective research cases
Other criminal cases
. Total
'.
Noncriminal cases.
-
Grand total
-
-
-
.
-
-
- -.
1947
Percentage
Increase or
increase or
decrease ( - ) decrease
(—)
90
52
688
28,621
7,292
3,677
379
82
47
524
28,460
15,709
2,458
623
-8
-5
-64
-161
8,417
-1,219
144
-8, 9
^9.6
—10.9
—.6
115.4
—33.2
38.0
40,699
3,146
47,803
2,399
7,104
-746
17.5
—23.7
43,844
60,202
6,358
14 6
Number of arrests and cases disposed of, fiscal years 1946 and 1947
1946
Arrests for:
Making or passing:
Counterfeit notes
Counterfeit coins
-.. Altered obligations
Forgery of Government checks
Violation of Gold Reserve Act
Violation of Farm Loan Act
Stolen, altered or forged bonds
Protective research cases
Stamp and strip starap cases
False claira cases
:
Theft of Treasury Departraent property.
War ration stamp cases
Coin-slug cases
-Miscellaneous--
19
31
115
2,143
7
310
102
2
3
3
5
1
18
1947
39
53
104
1,920
1
2
306
93
-1
7
105.3
. 71.0
-9.6
-10.4
-85.7
100.0
-1.3
-8.8
-100.0
-66.7
-66.7
-100.0
-100.0
38.9
-214
^---
Dismissed, not indicted, or died before trialTotal cases disposed of
20
22
-11
-223
-6
2
-4
-9
-2
-2
-2
-6
Total.
Cases disposed of:
Convictions in coimection with:
Counterfeit notesCounterfeit coins.
Altered obligations
Forgery of Government checks
-.
Violation of Gold Reserve Act..
Violation of Farm Loan Act
'.
Stolen, altered, or forged bonds.
Protective research cases
Stamp and strip stamp cases
-.
False claim cases:
Theft of Treasury Department propertyWar ration stamp cases..
Miscellaneous..
-..
Total..
Acquittals...
Percentage
Increase or
increase or
decrease (—) decrease
(-)
13
26
102
1,858
5
3
301
107
7
41
91
1,824
4
273
15
16
-il
-34
-1
-3
-28
-19
-7
1
-3
-11
•7
116.4
57.7
-10.8
-1.8
-20.0
-100.0
-9.3
-17.8
-100,0
100.0
-60.0
-78.6
63.6
263
2,373
56
166
-3.2
25.0
-36.9
2,769
2,594
6.0
2,462
44
./
EXHIBITS
145
\
PUBLIC DEBT
ISSUES AND REDEMPTIONS OF TREASURY CERTIFICATES OF INDEBTEDNESS
CALL FOR REDEMPTION OF TREASURY BOND ISSUE
AND
Exhibit 1
Offering of % percent certificates of indebtedness of Series G-1947, and
allotments
[Department Circular No. 791. Public Debtl
TREASURY DEPARTMENT,
Washington, July 17, 1946.
I. OFFERING OF
CERTIFICATES
1. The Secretary of the Treasury, pursuant to the authority of the Second
Liberty Bond. Act, as amended, invites subscriptions, at par, from the people of
the United States for certificates of indebtedness of the United States, designated
Ys percent Treasury certificates of indebtedness of Series G-1947, in exchange for
Treasury certificates of indebtedness of Series F-1946, maturing August 1, 1946.
Approximately $1,250,000,000 of the maturing certificates will be retired on cash
redemption.
II. DESCRIPTION
OF
CERTIFICATES
1. The certificates will be dated August 1, 1946, and will bear interest from
that date at the rate of Ys percent per annum, payable semiannually on February 1
and August 1, 1947. They will mature August 1, 1947, and will not be subject to
call for redemption prior to maturity,
°
2. The income derived from the certificates shall be subject to all Federal taxes,
now or hereafter imposed. The certificates shall be subject to estate, inheritance,
gift or other excise taxes, whether Federal or State, but shall be exempt from all
taxation now or hereafter imposed on the principal or interest thereof by any
State, or any of the possessions of the United States, or by any locjal taxing authority.
3. The certificates will be acceptable to secure deposits of public moneys.
They will not be acceptable in payment of taxes.
4. Bearer certificates with interest coupons attached will be issued in denominations of $1,000, $5,000, $10,000, $100,000, and $1,000,000, The certificates wih
not be issued in registered form,
5. The certificates will be subject to the general regulations of the Treasury
Department, now or hereafter prescribed, governing United States certificates.
III. SUBSCRIPTION
AND
ALLOTMENT
1. Subscriptions whl 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.
2. The Secretary of the Treasury reserves the right to reject any subscription,
in whole or in part, to allot less than the amount of certificates applied for, and to
close the books as to any or all subscriptions at any time without notice; and any
action he may take in these respects shall be final. Subject to these reservations,
subscriptions for amounts up to and including $25,000 will be allotted in full,
and subscriptions for amounts over $25,000 will be allotted to all holders on an
equal percentage basis, but not less than $25,000 on any one subscription. The
basis of the allotment will be publicly announced, and allotment notices will be
sent out promptly upon allotment.
764788—48
11
-147
148
REPORT OF THE SECRETARY
IV.
THE TREASURY
PAYMENT
1. Payment at par for certificates allotted hereunder must be made on or
before August 1, 1946, or on later allotment, and may be made only in Treasury
certificates of indebtedness of Series F-1946, maturing August 1, 1946, which will
be accepted at par, and should accompany the subscription.
V. GENERAL
PROVISIONS
1. 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
certificates allotted, to make dehvery of certificates on full-paid subscriptions
allotted, and they may issue interim receipts pending delivery of the definitive
certificates.
2. 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 communicated promptly to the Federal Reserve Banks.
JOHN
W . SNYDER,
Secretary of the Treasury.
Allotments of Ys percent Treasury certificates of indebtedness of Series G~1947, issued
in exchange for maturing Ys percent certificates pf Series F-1946 ^
F e d e r a l R e s e r v e district *
Boston
New York
Philadelphia
Cleveland
Cincinnati
,
Pittsburgh-Richmond
Baltimore
C h a r l o t t e _Atlanta
L
Birmingham
Jacksonville..
N e w Orleans,
Chicago
-_..
:
--- . .
Subscriptions
received a n d
allotted
Subscriptions
received a n d
allotted
F e d e r a l R e s e r v e district
$36,505,000
St. L o u i s . . Little Rock
755,394, 000
22,602,000
Louisville
Memphis...
16, 739, 000
A4inneapnlis
9,243,000
.
13,172, 000 1 K a n s a s C i t y
Dallas .
-.
-8, 706, 000
2,235,000
ElPaso
1--Houston
- - -_
5,410,000
9,297, 000
San A n t o n i o
'
2, 353, 000
San Francisco .
.
3, 923, 000
Treasmy
.2, 740, 000
3,113, 000
Total
100, 820, 000
-.
$16,991, 000
1,448,-000
6,298, 000
3, 898, 000
30, 444, 000
51, 578, 000
10,116, 000
1,144,000
8,643, 000
4, 261, 000
96,457, 000
1, 924, 000
1,223,463,000
1 Treasury had planned to retire on cash redemption about $1,260,000,000 of $2,469,619,000 maturing
certificates.
Exhibit 2
Offering of % percent certificates of indebtedness of Series H-1947, and
allotments
[Department Circular No. 792. Public Debt]
TREASURY
DEPARTMENT,
Washington, August 19, 1946.
I . OFFERING OF CERTIFICATES
1. The Secretary of the Treasury, pursuant to the authority of the Second
Liberty Bond Act, as amended,, invites subscriptions, at par, from the people of
the United States for certificates of indebtedness of the United States, designated
% percent Treasury certificates of,indebtedness of Series H-1947, in exchange for
Treasury certificates of indebtedness of Series G-1946, maturing September 1,
1946, Approximately $2,000,000,000 of the maturing certificates will be retired
on cash redemption ij
/
REPORT OF THE SECRETARY OF THE TREASURY
149
II. DESCRIPTION OF CERTIFICATES
1. The certificates will be dated September 1, 1946, and wih bear interest from
that date at the rate of Ys percent per annum, payable with the principal at
maturity on September 1, 1947. They will not be subject to call for redemption
prior to maturity.
2. The income derived from the certificates shall be subject to all Federal taxes;
now or hereafter imposed. The certificates shall be subject to estate, inheritance,
gift or other excise taxes, whether Federal or State, but shall be exempt from all
taxation now or hereafter imposed on the principal or interest thereof by any
State, or any of the possessions of the United States, or by any local taxing
authority,
3. The certificates will be acceptable to secure deposits of public inoneys.
They will not be acceptable in payment of taxes.
4. Bearer certificates will be issued in denominations of $1,000, $5,000, $10,000,
$100,000, and $1,000,000. The certificates will not be issued in registered form.
5. The certificates will be subject to the general regulations of the Treasury
Department, now or hereafter prescribed, governing United States certificates.
III. SUBSCRIPTION AND ALLOTMENT
1. 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.
2. The Secretary of the Treasury reserves the right to reject any subscription,
in whole or in part, to allot less than the amount of certificates applied for, and
to close the books as to any or all subscriptions at any time without notice; and
any action he may take in these respects shall be final. Subject to these reservations, subscriptions for amounts up to and including $25,000 will be allotted in
full, and subscriptions for amounts over $25,000 will be allotted to all holders on
an equal percentage basis, but not less than $25,000 on any one subscription.
The basis of the allotment will be publicly announced, and allotment notices will
be sent out promptly upon allotment.
'
'
IV. PAYMENT
1, Payment at par for certificates allotted hereunder must be made on or before
September 3, 1946, or on later allotment, and may be. made only in Treasury
certificates of indebtedness of Series G-1946, maturing September 1, 1946, which
will be accepted at par, and should accompany the subscription.
V. GENERAL PROVISIONS
1. 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 certificates allotted, to make delivery'of certificates on full-paid subscriptions
allotted, and they may issue interim receipts pending delivery of the definitive
certificates.
2. 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 communicated promptly to the Federal Reserve Banks.
JOHN W . SNYDER,
Secretary of the Treasury,
150
REPORT OF THE SECRETARY OF THE TREASURY
Allotments of Ys percent Treasury certificates of indebtedness of Series H-1947, issued
in exchange for maturing Ys percent certificates of Series G-1946 ^
Subscriptions
received a n d
allotted
F e d e r a l R e s e r v e district
Boston
New York
Philadelphia
Cleveland
Cincinnati. .
...
Pittsburgh
Richmond.
.. .
Baltimore
Charlotte - .
Atlanta
Birmingham--.
Jacksonville
N e w Orleans'
Chicago-
.
. . .
- . ._ . . .
1.
---
$47, 617, 000
1, 651, 403,000
31.965,000
. 31, 212, 000
10,199,000
13,027, 000
11,109,000
9, 565, 000
3, 091, 000
16, 228, 000
6,065,000
3, 614, 000
4,225,000
13, 209, 000
171,072,000
1
Subscriptions
received a n d
allotted
F e d e r a l R e s e r v e district
St. Louis
Little Rock Louisville
Meraphis
Minneapolis.
Kansas City
Dallas . . .
El Paso
Houston
San A n t o n i o
San Francisco
Treasury.
$23,399,000
2,843,000
6,990,000
2, 850, 000
39, 232, 000
73, 571, 000
16, 876, OOO
1, 455, 000
9,122, 000
3, 819, 000
136, 627, 000
620,000
... ..
.
.
_-
-^T:
-
_ -.
._
2,341,005, 000
Total
1 Treasury had planned to retire on cash redemption about $2,000,000,000 of $4,336,327,000 maturing certificates.
.
Exhibit 3
Offering of % percent certificates of indebtedness of Series J-1947, and
allotments
•
(Depai'tment Cii-cular No. 794. Public Debtl
'
TREASURY
DEPARTMENT,
Washington, Septemher 18, 1946.
I. OFFERING OF CERTIFICATES
1, The Secretary of the Treasury, pursuant to the authority of the Second
Liberty Bond Act, as amended, invites subscriptions, at par, from the people of
the United States for certificates of indebtedness of the United States, designated
Ys percent Treasury certificates of indebtedness of Series J-1947, in exchange for
Treasury certificates of indebtedness of Series H-1946, maturing October 1, 1946.
Approximately $2,000,000,000 of the maturing certificates will be retired on cash
redemption.
II,
DESCRIPTION o r
CERTIFICATES
1. The certificates will be dated October 1, 1946, and will bear interest from
that date at the rate of Ys percent per annum, payable with the principal at
maturity pn October 1, 1947. They will not be subject to call for redemption
prior to maturity.^ * * *
IV,
PAYMENT
1. Payment at par for certificates allotted hereunder must be made on or
before October 1, 1946, or on later allotment, and may be made only in Treasury
certificates of indebtedness of Series H-1946, maturing October 1, 1946, which
will be accepted at par, and should accompany the subscription.i * * *
JOHN
W . SNYDER,
Secretary of the Treasury.
' Omitted portion similar to corresponding section of Depai'tment Circular No, 792, exhibit 2,
151
REPORT OF THE SECRETARY OP THE TREAStJRY
Allotments of Ys percent Treasury certificates of indebtedness of Series J-194'^y
issued in exchange for maturing Ys percent certificates of Series H-1946 ^
Subscriptions
received a n d
allotted
F e d e r a l R e s e r v e district
Boston.
NewYork
Philadelphia
Cleveland
_.
Cincinnati
Pittsbm-gh
Richraond
Baltimore..
Charlotte
Atlanta
Bii'm ingh ara
Jacksonville
Nashville
N e w OrleansChlcago—-
----->
-. ..
- -.
- -
Subscriptions
received a n d
allotted
F e d e r a l R e s e r v e district
$45, 458. 000
792, 947, 000
32, 075, 000
30, 504,000
8, 681, 000
33,014,000
12,256,000
5,868,000
3, 566, 000
11, 656, 000
5,010,000
4,407, 000
5,083, 000
8,569,000
171,337,000
St. L o u l s - - . .
Little Rock
Louisville
Memphis
Minneapolis
KansasCity....
Dallas El Paso .
Houston
San A n t o n i o
San F r a n c i s c o . T r e a s u r y '..
--
.
._
..
'
_.. ..
.-
.
..
.
. _ _.
-..
Total...
:
$20,157,000
2,066,000
6,864, 000
3, 209, 000
34, 452,000
61,710,000
13, 595, 000
1, 893, 000
7, 517,000
5,117, 000
111, 509, 000
1,063, 000
1,439, 563, 000
1 Treasury had plaimed to retire on cash redemption about $2,000,000,000 of ,$3,439,865,000 maturing
certificates.
Exhibit 4
Offering of Ys percent certificates of indebtedness bf Series K-1947, and
allotments
[Department Circular No. 796. Public Debt]
TREASURY
DEPARTMENT,
Washington, Octoher 21, 1946.
I.
OFFERING OF
CERTIFICATES
1, The Secretary of the Treasury, pursuant to the authority of the Second
Liberty Bond Act, as amended, invites subscriptions, at par, from the people of
the United States, for certificates of indebtedness of the United States, designated
% percent Treasury certificates of indebtedness of Series K-1947, in exchange for
Treasury certificates of indebtedness of Series J-1946, maturing November 1,
1946. Approximately $2,000,000,000 of the maturing certificates wih be retired
on cash redemption.
II.
DESCRIPTION
OF
CERTIFICATES
1. The certificates will be dated November 1, 1946, and will bear interest from
that date at the rate of % percent per annum, payable with the principal at
maturity on November 1, 1947. They will not be subject to call for redemption
prior to maturity.^ * * *
IV.
PAYMENT
1. Payment at par for certificates allotted hereunder must be made on or before
November 1, 1946, or on later allotment, and may be made only in Treasury
certificates of indebtedness of Series J-1946, maturing November .1, 1946, which
will be accepted at par, and should accompany the subscription.^ * * *
JOHN
W.
SNYDER,
Secretary of the Treasury.
1 Omitted portion similar to corresponding section of Department Circulai' No, 792, exhibit 2.
152
REPORT OF THE SECRETART OF THE TREASURY
Allotments of Ys percent Treasury certificates of indebtedness of Series K-194'^j
issued in exchange for maturing Ys percent certificates of Series J-1946 ^
Federal Reserve district
Subscriptions
received and
allotted
Boston
-.NewYork
--.
Philadelphia
Cleveland .
Cincinnati.
_.
._
Pittsburgh _ .
Richmond---Baltiraore
Charlotte.-.Atlanta
Birmingham
-_Jacksonville . . .
Nashville
New Orelans
Chicago
• $42,208,000
1,036,476,000
42, 569,000
27,.517,000
6,761,000
13,.076,000
22,960,000
• 12,201,000
4,086,000
15„380,000
3,745,000
4,687,000
3,811,000
14,696,000
169,676,000
Subscriptions
received and
allotted
Federal Reserve district
St. Louis
-Little RockLouisville
Memphis
Minneapolis-.
Kansas City
Dallas.:
-.El Paso
Houston
San Antonio
San Francisco
Treasury
--
--.
_•.1
- .
Total
$19,725,000
2,672,000
9,174,000
3, 651,000
38,008,000
66, 855,000
14, 348,000'
1,481,000
6,711,000
15,175,000
171, 263, 000
5, 778, 000
1,774, 578,000
1 Treasury had planned to retire on cash redemption about $2,000,000,000 of $3,777,773,000 maturing
certificates.
Exhibit 5
Offering of % percent certificates of indebtedness of Series L-1947,,and
allotments
[Department Circular No. 797. Public Debt]
TREASURY
DEPARTMENT,
•
Washington, November 18, .1946.
1. OFFERING OF CERTIFICATES
. 1. The Secretary of the Treasury, pursuant to the authority of the Second
Liberty Bond Act, as amended, invites subscriptions, at par, from the people of
the United States, for certificates of indebtedness of the United States, designated
Ys percent Treasury certificates of indebtedness of Series L-1947, in exchange for
Treasury certificates of indebtedness of Series K-1946, maturing December 1,
1946.
II. DESCRIPTION OF CERTIFICATES
1. The certificates will be dated December 1, 1946, and will bear interest from
that date at the rate of Ys percent per annum, payable with the jDrincipal at
maturity on December 1, 1947. They wih not be subject to cah for redemption
prior to maturity.^ * * *
III. SUBSCRIPTION AND ALLOTMENT
2. * * *i Subject to these reservations, all subscriptions will be allotted in
full. Allotment notices will be sent out promptly upon allotment.
IV. PAYMENT
1. Payment at par for certificates allotted hereunder must be made on or before
December 2, 1946, or on later allotment, and may be made only in Treasury
certificates of indebtedness of Series K-1946, maturing December 1, 1946, which
will be accepted at par, and should accompany the subscription.^ * * *
JOHN W . SNYDER,
Secretary of the Treasury.
1 Omitted portion similar to corresponding section of Depai'tment Cli'cuiar No. 792, exhibit 2.
*
/
153
REPORT OF THE SECRETARY OF THE TREASURY
Allotments of Ys percent Treasury certificates of indebtedness of Series L-1947, issued
in exchange for maturing Ys percent certificates of Series K-1946
Subscriptions
received and
allotted
Federal Reserve district '
Boston
New York
.. . .
Philadelphia.-Cleveland
Cincinnati
Pittsburgh
Richmond
Baltimore .
Charlotte
Atlanta
,
Birrainghara-..
Jacksonville .
Nashvillp
New Orleans
Chicago
--
.
_
$81,908,000
1,405,038,000
98,009,000
145, 585,000
• 36, 703,000
: .-_
37, 501, 000
28,822,000
.
22,075,000
.
8,100, 000
. . 28, 368, 000
7, 699,000
. . .
9, 531,000
12,179, 000
20, 788,000
649,440,000
_.
Federal Reserve district
St. Louis...
Little Rock
Louisville.
Memphis.Minneapolis
Kansas City
Dallas.El Paso
Houston
San Antonio
San Francisco.Treasury
Total
.
-_
.
.
Subscriptions
received and
• allotted
$48,013,000
6,473 000
16, 766,000
7,412, 000
92, 919,000
117, 799,000
30,905,000
854,000
26, 621,000
18, 891,000
309,146,000
13, 347,000
3, 280, 792,000
Exhibit 6
Offering of Ys percent certificates of indebtedness of Series A-1948, and
allotments
[Department Circular No. 798. Public Debt]
TREASURY DEPARTMENT,
Washington, Decemher 18, 1946.
I. OFFERING OF CERTIFICATES
1. The Secretary of the Treasury, pursuant to the authority of the Second
' Liberty Bond Act, as amended, invites subscriptions, at par, from the people of
the United States, for certificates of indebtedness of the United States, designated Ys percent Treasury certificates of indebtedness of Series A-1948, in
exchange for Treasury certificates of indebtedness of Series A-1947, maturing
January 1, 1947.
II. DESCRIPTION OF CERTIFICATES
1. The certificates will be dated January 1, 1947, and will bear interest from
that date at the rate of % percent per annum, payable with the principal at maturity on January 1, 1948. They will not be subject to call for redemption prior
to maturity.^ * * *
III. SUBSCRIPTION AND ALLOTMENT
2. * * * ^ Subject to these reservations, all subscriptions will be allotted
in fuh. Allotment notices will be sent out promptly upon allotment.
IV. PAYMENT
1. Payment at par for certificates allotted hereunder must be made on or
before January 2, 1947, or on later allotment, and may be made.only in Treasury
certificates of indebtedness of Series A-1947, maturing January 1, 1947, which
will be accepted at par, and should accompany the subscription.^ * * *
JOHN W . SNYDER,
Secretary of the Treasury.
1 Omitted portion similar to corresponding section of Department Circular No. 792, exhibit 2.
\
154
REPORT OF THE SECRETARY OF THE TREASURY
Allotments of Ys percent Treasury certificates of. indebtedness of Series A-l948^
issued in exchange for maturing % percent certificates of Series A-1947
Federal Reserve district
Boston.New York
Philadelphia
Cleveland..
Cincinnati...
Pittsburgh...
Richmond
Baltimore
Charlotte
Atlanta
Birmingham.
Jacksonville-.
Nashville
New Orleans.
Subscriptions
received and
allotted
$114, 588,000
1,752,413,000
71,14.0, 000
44,087,000
14,650,000
25, 299,000
26,422,000
7,178,000
10, 305,000
44,020,000
12,029,000
12, 597,000
6,498,000
11,442,000
Federal Reserve district
Chicago
St, Louis-Little Rock- Louisville
Memphis:--Minneapolis
Kansas City
Dallas.
El Paso-..°...
Houston
San Antonio.
San Francisco
Treasury
Subscriptions
received and
allotted
$332,181,000
42,924,000
3, 652,000
24,795,000
7, 556,000
56,828,000
116, 306,000
26,973,000
3,484,000
19,541,000
19,680,000
327,084.000
625, 000
Total.
1"3,134,197,000
Exhibit 7
Offering of % percent certificates of indebtedness of Series B-1948, and
allotments
[Department Circular No. i
Public Debt]
TREASURY
DEPARTMENT,
Washington, January 20, 1947.
I. OFFERING OF CERTIFICATES
1. The Secretary of the Treasury, pursuant to the authority of the Second
Liberty Bond Act, as amended, invi1:es subscriptions, at par, from the people of
the.United States, for certificates of indebtedriess of the United States, designated
Ys percent Treasury certificates of indebtedness of Series B-1948, in exchange
for Treasury certificates of indebtedness of Series B-1947, maturing February 1,
1947. Approximately $1,000,000,000 of the maturing certificates will be retired
on cash redemption.
II. DESCRIPTION OF CERTIFICATES
1. The certificates will be dated February 1, 1947, and will bear interest from
that date at the rate of Ys percent per annum, payable with the principal at
maturity on February 1, 1948. They will not be subject to call for redemption
prior to maturity.^ * * *
IV. PAYMENT
1. Payment at .par for certificates allotted hereunder must be made on or
before February 1, 1947, or on later allotment, and may be made only in Treasury
certificates of indebtedness of Series B-1947, maturing February 1, 1947, which
will be accepted at par, and should accompany the subscription.i * * *
JOHN W .
SNYDER,
Secretary of the Treasury.
1 Omitted portion similar to corresponding section of Department Circular No. 792, exhibit 2.
155
REPORT OF THE SECRETARY OF THB TREASTJRY
Allotments of Ys percent Treasury ceriificates of indebtedness of Series B-1948,
issued in exchange for maturing Ys percent certificates df Series B-1947 ^
Subscriptions
received a n d
allotted
F e d e r a l R e s e r v e district
Boston
.
New York..
Philadelphia
Cleveland
Cincinnati
Pittsburgh---Richmond
Baltimore
Charlotte
Atlanta.
Birmingham
Jacksonville
Nashville
N e w Orleans
--
-.
--
..
-
-
$87,773,000
2, 706, 777,000
60, 736,000
49,621,000
9, 554,000
16, 287,000
16,416,000
22, 581,000
10, 485,000
33, 678, 000
8,077,000
8, 226,000
8,994,000
12,600,000
Subscriptions
received a n d
allotted
Federal Reserye district
Chicago
_St. Louis
Little Rock
Louisville
Memphis
Minneapolis
Kansas City
Dallas
ElPaso.--Houston
San A n t o n i o
San Francisco
Treasury—
--
—
Total..
$321,637,000
45,074,000
6,424,000
19, 762,000
8,801,000
55,135, 000
107,996,000
39,406,000
2,464,000
9,112,000
'16,129,000
. 261,559,000
2,456,000
3, 946, 660,000
1 Treasury had planned to retii'e on cash subscription about $1,000,000,000 of $4,953,989,000 maturing
certificates.
Exiiibit 8
Offering of Y% percent certificates of indebtedness of Series C-1948, and
allotments
[Department Circular No. 801. Public Debt]
TREASURY DEPARTMENT,
Washington, F e b r u a r y 17, 1947,
1. O F F E R I N G
O F CERTIFICATES
1. The Secretary of the Treasury, pursuant to the aiithority of the Second
Liberty Bond Act, as amended, invites subscriptions, at par, from the people of
the Ignited States, for certificates of indebtedness of the United States, designated
Ys percent Treasury certificates of indebtedness of Series C-1948, in exchange for
Treasury certificates of indebtedness of Series C-1947, maturing March 1, 1947.
Approximately $1,000,000,000 of the maturing certificates will be retired on cash
redemption.
II.
DESCRIPTION
OF
CERTIFICATES
1. The certificates will be dated March 1, 1947, and will bear interest from that
date at the rate of % percent per annum, payable with the principal at maturity
on March 1, 1948: They will not be subject to call for redemption prior to
maturity.! * * *
IV.
PAYMENT
1. Payment at par for certificates allotted hereunder must be made on or before
March 1, 1947, or on later ^allotment,, and may be made only in Treasury certificates of indebtedness of Series C-1947, maturing March 1, 1947, which will be
accepted at par, and should accompany the subscription,^ * * *
,
A,
L,
M.
WIGGINS,
Acting Secretary of ihe Treasury.
, 1 Omitted portion similar to corresponding section of Department Circular No. 792, exhibit 2.
156
REPORT OF THE SECRETARY'OF THE TREASURY
Allotments of Ys percent Treasury certificates of indebtedness of Series C-1948, issued
in exchange for maturing Ys percent certificates of Series C-1947 ^
• Subscriptions
received and
allotted
Federal Reserve district
BostonNew York
Philadelphia
Cleveland.
Cincinnati
Pittsburgh
Richraond.
-.
•..
Bal tim nrp.
Charlotte
Atlanta
Birmingham
Jacksonville
^ Nashville
New Orleans
Chicago
St. Louis
_.
Little Rock
Louisville
Memphis
-
...—-
1
$52,160,000
1,146,946,000
45, 638,000
33,700,000
16,147,000
28,069,000
14,258,000
• 6.265,000
4, 281,000
29,109,000
5, 950,000
11,280,000
9,064,000
. 21,096,000
264,989,000
43,648,000
3,400,000
22,667,000
6,603,000
Subscriptions
received and
allotted
Federal Reserve district
Minneapolis
Kansas City
Dallas
.El Paso
Houston
San Antonio
SanFrancisco
Los AngelesPortland--Salt Lake City..
Seattle
....1
Treasury .
Total
:
-
-
$51,956,000
92,051,000
32,384,000
. 2,120,000
18,811,000
13, 269,000
93, 730,000
60,127,000
1,939,000
2,613,000
7,021,000
2,661,000
2,141,731,000
1 Treasury had plaimed to retire on cash subscription about $1,000,000,000 of $3,133,009,000 maturing
certificates.
Exhibit 9
Offering of % percent certificates of indebtedness of Series D-1948, and
allotments
[Department Circular No. 802. Public Debt]
TREASURY
DEPARTMENT,
Washington, March 19, 1947,
I. OFFERING OF CERTIFICATES
L. The Secretary of the Treasury, pursuant to the authority of, the Second
Liberty Bond Act, as amended, invites subscriptions, at par, from the people
of the United States, for certificates of indebtedness of the United States, designated Ys percent Treasury certificates of indebtedness of Series D-1948, in exchange
for Treasury certificates of indebtedness of Series D-1947, maturing April 1, 1947.
Approximately $1,500,000,000 of the maturing certificates will be retired on cash
redemption.
II. DESCRIPTION OF CERTIFICATES
1. The certificates will be dated April 1, 1947, and will bear interest from that
date at the rate of Ys percent per annum, payable with the principal at maturity
on April 1, 1948. They will not be subject to call for redemption prior to maturity. ^ * * *
IV. PAYMENT
1. Payment at par for certificates allotted hereunder must be made on or
before April 1, 1947, or on later allotment, and may be made only in Treasury
certificates of indebtedness of Series D-1947, maturing April 1, 1947, which will
be accepted at par, and should accompany the subscrip tion.^ * * *
JOHN W . SNYDER,
Secreiary of the Treasury.
—:
^
1 Omitted portion similar to corresponding section of Department Circular No. 792, exhibit 2.
157
REPORT OF THE SECRETARY OF THE TREASURY
Allotment of Ys percent Treasury certificates of indebtedness of Series D-1948, issued
in exchange for maturing y% percent certificates of Series D-1947 ^
Subscriptions
received and
allotted
Federal Reserve district
Boston
New York
Philadelphia.- — .
Cleveland
Cincinnati...
Pittsburgh.-.
Richmond.
Baltimore
Charlotte
Atlanta
Birrainghara.
Jacksonville.
Nashville
New Orleans.
Chicago
-.
St. Louis
Little Rock..
$20,710,000
814,074,000
23,492,000
16,892,000
8,212,000
7,969,000
9, 593,000
4,436,000
3,221,000
15, 648,000
4, 715,000
3, 772,000
5,852,000
8,585, 000
122,163,000
27, 905,000
2,294, 000
Federal Reserve district
St. Louis—Continued
Louisville.
Meraphis.-.
Minneapolis
Kansas City
Dallas
-..-.._
ElPaso
Houston
San Antonio..--.
San Francisco
LosAngeles
Portland
Salt Lake City...
Seattle
Treasury...
Total--
--
Subscrifitions
received and
allotted
$14,191,000
.4,643,000
32,389,000
55, 335,000
16,229,000
946,000
14, 390,000
11,930,000
37,482,000
27,550,000
1,868,000
1,214,000
2,664,000
775,000
1,321,139,000
1 Treasury had planned to retire on cash subscription about $1,500,000,000 of $2,819,694,000 maturing
corti ficates.
Exhibit 10
Offering of % percent certificates of indebtedness of Series E-1948, and
allotments
[Department Circular No. 807. Piibhc Debt]
TREASURY
DEPARTMENT,
Washington, May 21, 1947,
I.
O F F E R I N G OF CERTIFICATES
1. The Secretary of the Treasury, pursuant to the authority of the Second
Liberty Bond Act, as amended, invites subscriptions, at par, from the people of
the United States, for certificates of indebtedness of the United States, designated
Ys percent Treasury certificates of indebtedness of Series E-1948, in exchange for
Treasury certificates of indebtedness of Series E-1947, maturing June 1, 1947.
Approximately $1,000,000,000 of the maturing certificates will be retired on cash
redemption.
II. DESCRIPTION OF CERTIFICATES
1. The certificates will be dated June 1, 1947, and will bear interest from that
date at the rate of % percent per annum, payable with the principal at maturity
on June 1, 1948. They will not be subject to call for redemption prior to maturity.^ * * *
^
IV. PAYMENT
1. Payment at par for certificates allotted hereunder must be made on or before June 2, 1947, or on later allotment, and may be made only in Treasury
certificates of indebtedness of Series E-1947, maturing June 1, 1947, which wih
be accepted at par, and should accompany the subscription.^ * * *
JOHN W . SNYDER,
Secretary of the Treasury.
» Omitted portion similar to corresponding section of Department Circular No. 792, exhibit 2.
158
REPORT OF THE SECRETARY OF THE TREASURY
Allotments of Ys percent Treasury certificates of indebtedness of Series E~1948, issued
in exchange for maturing Ys percent certificates of Series E-1947^
Subscriptions
received a n d
allotted
F e d e r a l Reserve district
Boston
---N e w York
Philadelphia
Cleveland
Cincinnati
Pittsburgh
.
Richmond - - Baltiraore
Charlotte
Atlanta
Birrainghara
Jacksonville
Nashville..
N e w Orleans-Chicago.
St Louis
Little Rock
.-
- .
---
$48,141,000
1,051,740,000
35,369,000
34,168,000
10,953,000
13,471,000
16,035,000
6,479,000
3,383,000
12,670,000
4,081,000
4,552,000
4,652,000
7,100,000
187,222,000
27,238,000
6, 512,000
Subscriptions
received a n d
allotted
F e d e r a l Reserve district
St. LOuls—Continued
Louisville
Meraphls-Minneapolis
Kansas City - . '
Dallas
E l Paso
Houston
San A n t o n i o
San F r a n c i s c o . Los Angeles
Portland--Salt L a k e C i t y
Seattle.
Treasury
Total
-
-
$10,211,000
6,716,000
41,329,000
76, 546,000
16,631,000
614,000
14, 658,000
7,166,000
67,726,000
54, 510,000
2, 762,000
2, 620, 000
8,791,000
5, 297,000
1,777,142,000
1 Treasury had planned to retire on cash subscription about $1,000,000,000 of $2,774,925,000 maturing
certificates.
Exhibit 11
Offering of % percent certificates of indebtedness of Series F-1948, and
allotments
[Department Circular No. 809. Public Debt]
TREASURY DEPARTMENT,
Washington, June 23, 1947.
I. OFFERING OF CERTIFICATES
1. The Secretary of the Treasury, pursuant to the authority of the Second
Liberty Bond Act, as amended, invites subscriptions, at par, from the people of
the United States, for certificates of indebtedness of the United States, designated
Ys percent Treasury certificates of indebtedness of Series F-1948, in exchange for
Treasury certificates of indebtedness of Series F-1947, maturing July 1, 1947.
II,
DESCRIPTION OF CERTIFICATES
1. The certificates will be dated July 1, 1947, and will bear interest from that
date at the rate of % percent per annum, payable with the principal at maturity
on July 1, 1948, They will not be subject to call for redemption prior to maturity.^ * * *
IIL
SUBSCRIPTION AND ALLOTMENT
1. 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.
2, The Secretary of the Treasury reserves the right to reject any subscription,
in whole or in part, to allot less than the amount of certificates applied for, and to
close the books as to any or all subscriptions at any time without notice; and any
action he may take in these respects shall be final. Subject to these reservations,
all subscriptions wih be allotted in full. Allotment notices will be sent out promptly
upon allotment.
IV.
PAYMENT
1. Payment at par for certificates allotted hereunder must be made on or before
July 1, 1947, or on later allotment, and may be made only in Treasury certificates
of indebtedness of Series F-1947, maturing July 1, 1947, which wih be accepted
at par, and should accompany the subscription.^ * * *
JOHN W .
SNTP^II,
Secretary of the fr^cis'ijfy,
I Omitted portion similar to corresponding section of Department Circular No. 792, exhij)it..2.
159
REPORT OF THE SECRETARY OF THE TREAStTRY
Allotments of Ys percent Treasury certificates of indebtedness of Series F-1948, issued
i n exchange for maturing Ys percent certificates of Series F-1947
Subscriptions
received and
allotted
Federal Reserve district
Boston
New York
Philadelphia.-Cleveland--Cincinnati..
Pittsburgh
Richmond..
Baltimore.Charlotte
1
Atlanta
Birrainghara..
Jacksonville..
Nashville
New Orleans.Chicago
St. Louis
Little Rock
:...
„
--.
$86,088,000
1,726,902,000
40,138,000
37,033,000 •
•8, 988, 000
26,840,000
15, 590,000
6, 673,000
11, 566,000
19,494,000
6, 900,000
9,358,000
5,461,000
15,349,000
273,426,000
38, 597,000
4,368,000
Federal Reserve district
St. Louis—Continued
Louisville
Memphis
_.
Minneapolis
Kansas City
Dallas
—
.El Paso
---Houston
San Antonio
_. . . .
San Francisco
LosAngeles
..
Portland.-...^.
Salt Lake City
Seattle
Treasury
Subscriptions
received and
allotted
$12,670,000
8,949,000
42, 948,000
93,182,000
23,033,000
1, 264,000
16,761,000
20, 659,000
88,061,000
88, 501,000
2, 245,000
2,668,000
6,009,000
2,354,000
2,741,964,000
Total
Exhibit 12
Call, J u n e 13, 1947, for redemption on October 15, 1947, of 4Vi percent Treasury
bonds of 1947-52 (press release J u n e 13, 1947)
TREASURY
DEPARTMENT,
Washington, J u n e 13, 1947.
Secretary of t h e (Treasury Snyder announced t o d a y t h a t all outstanding 4]i
percent Treasury bonds of 1947-52 are called for redemption on October 15, 1947,
and will be redeemed in cash. There are now outstanding $758,945,800 of these
bonds.
T h e text of t h e formal notice of call is- as follows:
To Holders of 4% percent Treasury Bonds of 1947-52, and Others Concerned:
1. Public notice is hereby given t h a t all outstanding 4J4 percent Treasury bonds
of 1947-52, dated October 16, 1922, are hereby called for redemption on October
15, 1947, on'which date interest on such bonds will cease,
2. Full information regarding t h e presentation a n d surrender of t h e bonds for
cash redemption under this call will be found in D e p a r t m e n t Circular No. 666,
dated July 21, 1941. .
J O H N W . SNYDER,
Secretary of the Treasury.
TREASURY BILLS
Exhibit 13
S t a t e m e n t , April 9, 1947, that the reduction in the offering of bills continues the
T r e a s u r y ' s policy for the r e t i r e m e n t of b a n k - h e l d debt
Secretary of t h e Treasury Snvder announced t o d a y t h a t t h e offering of Treasury
bhls to be dated April 17th wih a m o u n t to $1,100,000,000. T h e t o t a l of bills
m a t u r i n g on t h a t date is $1,300,000,000, so t h a t t h e a m o u n t outstanding will be
reduced by $200,000,000.
T h e Secretary said t h a t this reduction of $200,000,000 in bhls is a continuation
of the Treasury's pohcy for t h e retirement of debt held by t h e banking system.
There are no other securities m a t u r i n g until J u n e 1—the M a y 1 certificate was
paid off in full last y e a r s a n d since t h e Treasury has an ample cash balance, p a r t
of it is being applied to retire Treasury bills now.
T h e Secretary pointed out t h a t the Treasury began its debt pay-off program
on March 1, 1946, and t h a t since t h a t time t h e debt has been reduced by $22,000,000,000.
I n response to an inquiry, the Secretary stated t h a t the retirement of bills has;
no relation to Treasury policy with respect t o interest rates and. t h a t no change
in policy is presently contemplated.
160
REPORT OF THE SECRETARY OF THE TREASURY
Exhibit 14
Announcement, April 25, 1947, that maturing.Treasury bills as well as cash will
be accepted in payment of new Treasury bills
Secretary of the Treasury Snyder announced today that beginning with the
issue of Treasury bills to be dated May 1, 1947, and until further notice, the
Treasury will invite tenders for bills in exchange for maturing bihs as^ well as for
cash, with equal treatment accorded all tenders, whether the bidders offer to
exchange maturing bihs or to pay cash for the new bills bid for. Cash adjustments
will be made for differences between the par value of maturing bills accepted in
exchange and the issue price of the new bills.
The bills to be dated May 1 wih be i n t h e amount of $1,100,000,000, about
$200,000,000 less than the amount maturing on that date.
The procedure for accepting exchange as well as cash tenders is being adopted
to facilitate weekly refunding operations in bihs. The bill holdings of the Federal
Reserve Banks recently were $15,000,000,000 out of a total of $17,000,000,000
outstanding. Under existing procedure, the Federal Reserve Banks replace their
weekly maturing bill issues, in large part, by purchasing new issues from security
dealers, who ordinarily bid for amounts greatly in excess of market needs. This
is done solely to facilitate the bill operation, as the dealers charge no commission
for this service, and obtain only the nominal profit from the transaction which is
available to anyone. Under the new procedure the Federal Reserve Banks will
be in a position to bid directly on an exchange basis for new issues in amounts not
in excess of those required to replace maturing issues of bills originally acquired
in the market.
Any addition to Federal Reserve holdings of bills would be purchased in the
open market as at present.
Exhibit 15
Inviting tenders for Treasury bills dated May 1,1947 (press release April 25,1947)
The Secretary of the Treasury, by this public notice, invites tenders for
$1,100,000,000, or thereabouts, of 91-day Treasury bills, for cash and in exchange
for Treasury bhls maturing May 1, 1947, to be issued on a discount basis under
competitive and fixed-price bidding as hereinafter provided. The bills of this
series will be dated May 1, 1947, and will mature July 31, 1947, when the face
amount will be payable without interest. They will be issued in bearer form
only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and
$1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and branches up to the closing hour, two o'clock p. m., eastern standard time, Monday, April 28, 1947.
Tenders will not be received at the Treasury Department, Washington. Each
tender must be for an even multiple of $1,000, and the price offered must be
expressed on the basis of 100, with not more than three decimals, e. g., 99.925.
Fractions may not be used. It is urged that tenders be made on the printed forms
and forwarded in the special envelopes which will be supplied by Federal Reserve
Banks or branches on application therefor.
Tenders will be received without deposit from incorporated banks and trust
companies and from responsible and recognized dealers in investment securities.
Tenders from others must be accompanied by payment of 2 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, tenders will be opened at the Federal Reserve Banks and branches, following which public announcement wih be made by
the Secretary of the Treasury of the amount and price range of accepted bids.
Those submitting tenders will be advised of the acceptance or rejection thereof.
The Secretary of the Treasury expressly reserves the right to accept or reject any
or all tenders, in whole or in part, and his action in any such respect shall be final.
Subject to these reservations, tenders for $200,000 or less from any one bidder at
99.905 entered on a fixed-price basis will be accepted in full: Settlement for accepted tenders in accordance with the bids must be made or completed at the
Federal Reserve Bank on May 1, 1947, in cash or other. immediately available
funds or in a like face amount of Treasury bihs maturing May 1, 1947. Equal
161
REPORT OF THE SECRETARY OF THE TREASURY
treatment will be accorded all tenders, whether the bidders offer to exchange
maturing bills or to pay cash for the new bills bid for. Cash adjustments will be
made for differences between the par value of maturing bills accepted in exchange
and the issue price of the new bills.
The income derived from Treasury bills, whether interest or gain from the sale
or other disposition of the bills, shall not have any exemption, as such, and loss
from the sale or other disposition of Treasury bills shall not have any special
treatment, as such, under Federal tax acts now^or hereafter enacted. The bills
shall be subject to estate, inheritance, gift, or other excise taxes, whether Federal
or State, but shall be exempt from all taxation now or hereafter imposed on the
principal or interest thereof by any State, or any of the possessions of the United
States, or by any local taxing authority. For purposes of taxation the amount
of discount at which Treasury bihs are originally sold by the United States shall
be considered to be interest. Under sections 42 and 117 (a) (1) of the Internal
Revenue Code, as amended by section 115 of the Revenue Act of 1941, the amount
of discount at which bills issued hereunder are sold shah not be considered to
accrue until such bills shall be sold, redeemed or otherwise disposed of, and such
bills are excluded from consideration as capital assets. Accordingly, the owner
of Treasury bills (other than life insurance companies) issued hereunder need
include in his income tax return only the difference between the price paid for
such bills, whether on original issue or on subsequent purchase, and the amount
actuahy received either upon sale or redemption at maturity during the taxable
year for which the return is made, as ordinary gain or loss.
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.
Exhibit 16
Acceptance offenders for Treasury bills dated May 1, 1947 (press release
April 29, 1947)
The Secretary of the Treasury announced last evening that the tenders for
$1,100,000,000, or thereabouts, of 91-day Treasury bills to be dated May 1 and
to mature July 31, 1947, which were offered on April 25, 1947, were opened at
the Federal Reserve Banks on April 28.
The'details of this issue are as follows:
Total applied for
$1,960,002,000.
Total accepted
1, 100, 016, 000 (includes $20,380,000 entered on a
fixed-price basis at 99.905 and accepted in full).
Average price
99,905 +Equiv. rate of discount approx. 0.376% per
annum.
Range of accepted competitive bids:
High—99,9.07 Equiv. rate of discount approx. 0.368% per annum
Low—99.905
"
'' ''
"
''
0,376% "
(55 percent of the amount bid for at the low price was accepted)
Total applied
for
Federal Reserve district
Boston
._
NewYork
.....
Philadelphia
Cleveland
Richmond
Atlanta
Chicago_St. Louis
-- • . .
Minnpapolis
Kansas City . ._
_
Dallas
-^
San Francisco.
-Total
-
-
. . . .
-
-
-
.
------
.--
-
."
'
i
-
$9, 500,000
1,461, 772,000
42,413,000
28,405,000
6, 386,000
3,100,000
238,468,000
39,036,000
3,915,000
36,426,000
9, 602,000
82,080,000
1,960,002,000
Total
accepted
$6,366,000
801, 111, 000
24,114,000
16,206,000
4, 765,000
3,100,000
138,216,000
22,096,000
2,457,000
25,978,000
8, 624,000
47,993,000
1,100,016,000
Exhibit 17
Press releases pertaining to Treasury bill issues during the fiscal year 1947 were similar in form to exhibits 14 and 15 on pages 277
jand 278 of the 1946 annual report and, beginning with the issue dated May 1, 1947, to exhibits 15 and 16 in this report. The weekly
releases are, therefore, not reproduced here, but the essential details regarding each issue are summarized in the following table.
Summary of information contained in press releases issued in connection with Treasury hills ofi'ered during the fisccil year 1947
o
T e n d e r s accepted.
On competitive bidding
D a t e of issue i
D a t e of m a t u r i t y
Total
amount
applied
for 2 (In
thousands)
Total
amount
accepted 2
(In t h o u sands)
Highest
Price
(per h u n dred)
Lowest
Equivalent
rate 3
(percent)
Price
(per h u n dred)
99.906
99.9)5
99.9)5
99.905
99. 905
99. 905
99. 905
99.905
99.904
99. 906
99.905
99. 905
99.906
Average
O n fixed
price
basis at
99,905
a n d accepted i n
full 2 (in
thousands)
Equivalent
rates
(percent)
Amount 2
(In thou-"
sands)
0.376
,376
.376
.376
.376
.376
.376
.376
.376
.376
.376
,376
.376
$1, 278,056
1, 278,109
1, 270,161
1,269,843
1, 272, 236
1, 279, 830
1,275,553
1, 272, 349
1, 274, 536
1,281,010
1, 270, 688
1, 270,187
1, 273,470
99.906+
99.905+
99. 905+
99.905+
99.905+
99.905+
99.905+
99. 905+
99. 904+
99. 905+
99.905+
99. 905+
99.905+
0.376
.375
.375
,375
.376
.376
.376
.375
.375
.375
.375
.375
.375
$29, 689
37, 027
40,466
35,286
33,875
35, 526
38,161
36, 008
27, 696
27,995
34,649
34, 640
29, 970
.376
.376
• .376
. 376
.376
.376
.376
1, 283,146
1, 275, 210
1, 272, 400
1, 271, 015
1, 273, 816
1,282,825
1, 291, 944
1, 279, 861
99. 905+
99. 906+
99. 905+
99. 905+
99.905+
99.905+
99. 905+
99. 905+
,375
.375
.375
.376
.376
.376
.376
.376
23, 776
31, 228
34,194
30,950
29,445
29, 399
21, 768
33, 810
Prlce°
(per h u n dred)
Equivalent
rates
(percent)
-
.---
Oct. 3
Oct. 10
Oct. 17
Oct. 24
Oct. 31
Nov. 7
N o v . 14
N o v . 21
Nov.29
Dec.5
D e c . 12
D e c . 19
D e c . 26
....
.
803,541 $1, 307, 746
1, 315,136
891,988
1, 310, 617
894, 954
1,305,129
767, 761
1,306, 111
796, 274
1, 315, 356
823, 976
1, 313, 714
816,484
1, 308, 357
803,897
1, 302, 232
804, 782
1, 309,005
812, 315
1, 305, 337
801,999
1, 304,82'7
777, 250
1, 303,440
830, 960
99.908
99.907
99. 907
99. 9 )7
99. 907
99. 9 )7
99. 908
99. 9 )8
99.9)7
99.9 )7
99. 907
99.907
99.907
0.368
.368
.368
,368
.368
. 3 58
.364
.3)4
.364
.368
.368
.368
.368
1, 306,922
1, 306, 438
1, 306, 594
1, 301,965
1, 303, 261
1, 312, 224
1,313,712
1, 313, 661
99.908
99.9)7
99. 907
99. 9 )7
99.9)6
99.9)7
99. 907
99.907
.364
.368
.368
.368
.372
.368
.368
.368
1947
Pet. 3
P e t . 10
P e t . 17
P e t . 24.Pet, 31-..
Nov. 7
N o v , 14
N o v . 21
— - —.
-.
—
Jan. 2
Jan. 9.
Jan.16
J a n . 23
Jan.30
Feb.6
F e b . 13
F e b . 20
o
M
Ul
o
1946
1946
July 6 - - .
J u l y 11
• J u l y 18
J u l y 26Aug. 1
Aug.8
A u g . 16
A u g , 22
A u g , 29
Sept, 5 . . .
Sept, 1 2 - - - - :
S e p t . 19
S e p t . 26
Days
to
maturity
>
o
W
H
S)
>
d
Ul
i;d
,880,466
, 891, 563
, 804, 729
,790,665
, 754, 460
, 805, 064
, 755, 891
, 826, 794
99.
99.
99.
99.
99.
99.
99.
99.
905
905
905
905
905
905
905
905
.376 1
29.
5...
12..
19..
26-
F e b . 27M a r . 6.
M a r . 13
M a r . 20.
M a r . 27
1, 799, 635
1, 768, 931
1, 817,059
1, 784, 066
1, 841, 546
1,312, 502
1,315, 534
1, 314, 809
1. 308,904
1, 316, 677
Jan.2...
Apr. 3 . .
A p r . 10A p r . 17.
A p r . 24.
M a y 1..
M a y 8-.
M a y 15.
M a y 22.
M a y 29.
J u n e 5-J u n e 12.
J u n e 19.
J u n e 26.
July 3 J u l y 10.
J u l y 17.
J u l y 24.
July 31.
A u g . 7-.
A u g . 14.
A u g . 21.
A u g . 28.
Sept. 4Sept. 11
Sept. 18
Sept. 26
2,892,607
2, 057,029
1,791,369
1, 704, 759
1, 786, 670
1, 723, 054
1, 773, 319
1, 779, 251
1, 784, 212
1, 873, 422
1, 836, 470
1, 863.886
1, 823, 470
1, 721, 799
1,841, 319
1, 693, 688
1, 665, 272
1,959,752
1, 707. 047
1, 761, 294
1, 746, 342
1,807, 342
1, 879,856
1, 943,118
1,961,025
1,816,713
1,311,277
1, 311, 578
1, 315, 701
1.316,103
1,311,650
1,309, 924
1, 301,981
1,312,015
1, 301, 620
1, 315, 453
1, 306, 510
1, 316, 560
1,308, 024
1, 303, 249
1, 314, 459
1,108,388
1,100,390
41, 099, 879
^ 1, 111, 561
41, 202, 477
' 1, 203, 476
M , 31], 450
M , 307, 419
4 1,303,178
41, 305, 370
41,103, 664
Nov.
Dec.
Dec.
Dec,
Dec.
Jv, Jan. 9 . . .
00 J a n . 1 6 . Jan. 23-.
Jan.30-^ Feb. O.to F e b . 1 3 '
Feb. 20Feb. 2 7 Mar. 6..
M a r . 13.
M a r . 20.
M a r , 27.
Apr. 3 —
A p r . 10..
Apr. 17..
A.pr. 2 4 . .
May 1- May8-_
M a y 15-.
M a y 22M a y 29.
j u n e 5-•{r.une 12-.
•June 1 9 . .
•June 26-.
907
907
908
907
907
.372
.368
.364
,368
.368
99.906
99. 905
99. 905
99. 905
99. 905
.376
.376
.376
.376
.376
1, 286,172
1, 289, 673
1,287.215
1, 282, 298
1, 291, 546
99.906+
99. 9 0 5 +
99. 9 0 5 +
99. 9 0 5 +
99. 906+
.376
.376
,375
.375
,375
26, 330
25,861
27, 594
26, 606
25,031
99. 907
99. 907
99. 907
99. 907
99.906
99. 906
99. 906
99. 906
99. 906
99. 907
99. 906
99.907
99. 906
99. 907
99, 907
99.907
99.907
99.907
99.906
99. 908
99. 906
99.906
99.906
99.906
99.907
99.906
.368
.368
.368
.368
.372
.372
,372
.372
.372
.368
.372
.368
.372
.368
.368
.368
.368
.368
.372
. 364
.372
. 372
.372
.372
.368
.372
99. 905
99.90599. 905
99. 905
99. 905
99. 905
99. 905
99. 905
99. 906
99. 905
99.905
99. 905
99. 905
99. 905
99.905
99. 905
99.906
99.905
99. 905
99.905
99. 905
99.905
99.905
99. 905
99. 905
99.905
.376
. 376
.376.
.376
.376
.376
.376
.376
.376
.376
.376
.376
.376
,376
.376
.376
.376
.376
.376
.376
. 376
.376
.376
.376
.376
.376
1, 292,137
1, 287, 036
1, 287, 832
1, 292, 709
1, 286, 838
1, 287,105
1, 282, 742
1, 289, 563
1, 284, 636
1, 292, 621
1, 281, 850
1, 295; 414
1, 285, 809
1, 287, 990
I , 293, 625
1,087,280
1, 082, 833
1, 079, 499
1, 094, 464
1,185, 794
1,184, 479
1, 297, 558
1. 293, 013
1, 285, 860
1, 288, 345
1,087,146
99. 905+
99. 905+
99. 905+
99. 905+
99.905+
99. 905+
99. 905+
99. 9 0 ^ +
99. 905+
99. 905+
99. 905+
99. 905+
99. 905+
99. 905+
99. 905+
99.905+
99. 905+
99.905+
99.905+
99.905+
99.905+
99.906+
99.905+
99.905+
99.905+
99. 906+
374
375
376
376
376
376
376
376
376
376
376
376
376
376
376
376
376
376
376
376
376
376
376
376
376
376
19,140
24, 642
27, 869
23, 394
24, 812
22, 819
19, 239
22, 452
16, 984
22, 832
24, 660
21,136
22, 215
15, 259
20,834
21,108
17, 557
20,380
17, 097
16, 683
18, 997
13. 892
14,406
17, 318
17, 025
16,518
99.
99.
99.
99.
99.
tei
o
o
1^
M
Ul
o
o
H
,1 T h e press release i n v i t i n g t e n d e r s for T r e a s u r y bill Issue Is d a t e d 6 d a y s before t h e d a t e of t h e Issue. T h e press release a n n o u n c i n g t h e acceptance of t e n d e r s Is d a t e d 2 d a y s
(before t h e d a t e of t h e Issue. T h e closing d a t e on w h i c h t e n d e r s for a n issue are accepted is 3 d a y s before t h e d a t e of t h e issue.
2 Figures, a t m a t u r i t y value, are final a n d differ in m o s t cases from those s h o w n In t h e press release a n n o u n c i n g t h e details of t h e p a r t i c u l a r issue.
8 B a n k discount basis.
* T e n d e r s fbr t h e following Issues were accepted in exchange for m a t u r i n g bills as well as for cash ( a m o u n t s in t h o u s a n d s ) :
>
Ul
Cash
Issue
Issue
1947
Mayl -..
]VIky'8 ••
Mayl6
May22 May29-
Exchange
Exchange
d
1947
.
. -
Cash
-
$470,984
465,144
496, 039
482, 617
480,696
628, 895
646,417
706, 438
720, 859
830, 754
June 5
J u n e 12
.Tnnp. 19
.lurip. 26
$508, 041
540,334
543, 716
499,369
$799,378
762,844
761, 655
604, 296
CO
•
164
REPORT OF T H E SECRETARY OF THE. TREASURY
Exhibit 18
A m e n d m e n t s to D e p a r t m e n t Circular No. 418, as a m e n d e d , relating to Treasury
bills
THIRD
AMENDMENT,
M A Y 7,
1947,
TO D E P A R T M E N T C I R C U L A R
No.
418
TREASURY DEPARTMENT,
Washington, M a y 7, 1947.
P a r a g r a p h 11 of D e p a r t m e n t Circular N o . 418, as amended, dated F e b r u a r y 28,
1941 (31 (JFR 309,11), is hereby amended to read as follows:
''Sec. 309,11 Tenders; payment .of accepted tenders. Settlement for accepted
tenders in accordance with t h e bids m u s t be m a d e or completed a t t h e a p p r o priate Federal Eeserve Bank in cash or other immediately available funds on
or before t h e date specified, except t h a t ' t h e Secretary of t h e Treasury,
in his discretion, when inviting tenders for Treasury bills, m a y provide: (1)
t h a t any qualified depositary m a y m a k e such settlement by credit, on behalf of
itself and its customers, u p to a n y a m o u n t for which it shall be quahfied in excess
of existing deposits, when so notified by t h e Federal Reserve Bank of its district
or (2) t h a t such settlement m a y be m a d e in m a t u r i n g Treasury bills accepted in
exchange. Whenever t h e Secretary provides for settlement in m a t u r i n g Treasury
bills, cash adjustments will be m a d e for differences between t h e p a r value of t h e
maturing bills and the issue price of t h e new bills.'^
A. L. M, W I G G I N S ,
Acting Secretary of the Treasury.
F O U R T H A M E N D M E N T , J U L Y 3, 1947,
TO D E P A R T M E N T C I R C U L A R N o .
418
TREASURY DEPARTMENT,
Washington, J u l y 3, 1947.
Sections 309.4 a n d 309,7 of t h e D e p a r t m e n t Circular No, 418, as amended
(31 C F R Cum, Supp. 309.4 and 309,7), are hereby revised to read as follows:
"Sec, 309.4, T h e income derived from Treasury bills, whether interest or gain
from t h e sale or other disposition of the bills, shall not have a n y exemption, as such,
a n d loss from t h e sale or other disposition of Treasury bills shall n o t have any
special t r e a t m e n t , as such, under t h e Internal Revenue Code, or laws a m e n d a t o r y or
supplementary thereto. T h e bills shall be subject to estate, inheritance, gift, or other
excise taxes, whether Federal or State, b u t shall be exempt from all taxation now or
hereafter imposed on t h e p r i n c i p a l o r interest thereof by a n y State, or a n y of t h e '
possessions of the. United States, or by a n y local taxing authority. For purposes
of taxation t h e a m o u n t of discount a t which Treasury bills are originally sold by
t h e United States shall be considered t o be interest." ^
"Sec. 309,7. Tendiers in response to a n y such public notice will be received
only a t t h e Federal Reserve Banks, or branches thereof, and unless received before
t h e time fixed for closing will be disregarded. Tenders will n o t be received a t t h e
Treasury D e p a r t m e n t . Each tender m u s t be for an a m o u n t in an even multiple of
$1,000 (maturity value). I n t h e case of competitive tenders t h e price or prices
offered by t h e bidder for t h e a m o u n t or amounts (at m a t u r i t y value) applied for
m u s t be stated, a n d m u s t be expressed on t h e basis of 100, with n o t more t h a n
three decimals, e. g,, 99,925. Fractions m a y not be used."
'
J O H N W . SNYDER,
Secretary of the Treasury.
1 This section is amended in order to conform to the language of Public Act No. 116 of the 80th Congress
(see exhibit 22).
REPORT OF THE SECRETARY OF THE TREASURY
165
MISCELLANEOUS
Exhibit 19
Regulations governing armed forces leave bonds ^
[Department Circular No. 793. Public Debtl
TREASURY
DEPARTMENT,!
Washington, November 12, 1946,
To Memhers and Former Memhers of the Armed Forces of the United States, and
Others Concerned:
Under section 6 of the Armed Forces Leave Act of 1946 (hereinafter referred to
as the act) ,2 living members and living former members of the armed forces of the
United States are entitled to receive under the conditions set forth in the act,
bonds of the United States in settlement and compensation of accumulated leave.
Under the terms of the act these bonds are issued under authority and subject to
the provisions of the Second Liberty Bond. Act, as amended.
Pursuant to the authority contained in said acts the following regulations are
prescribed to govern such bonds:
1. SUBSTANTIVE REGULATIONS
324.1 Designation.—The bonds issued for the above purpose are designated
"armed forces leave bonds."
324.2 Issue and inscription.—Armed forces leave bonds are issued by the
Secretary of the Treasury (hereinafter referred to as the Secretary) acting through
the Army, Navy, Marine Corps, and Coast Guard, which are designated as
issuing agents. They are inscribed only in the names of living members or living
former members of the armed forces. In each case a single bond in the highest
appropriate multiple of $25 is issued where the amount due is $50 or more. The
name and serial or service number of the owner will be inscribed on the bond and
at the option of the issuing agent the address may also be inscribed. No exchange
will be permitted for bonds of lower denomination, for example, if a bond for $275
i s issued to a particular owner he may not exchange that bond for a bond in the
amount of $200 and a bond in the amount of $75.
324.3 Date and niaturity of bond, and interest.—The issue date of a bond will be
the first day of the quarter-year period (January 1, April^, July 1, or October 1)
next following the date of discharge from the armed forces of the former member
whose name is to be inscribed thereon, provided he was discharged on or after
January 1, 1943, and prior to September 1, 1946, or in case a member of the armed
forces was still on active duty on September 1, 1946, his bond will be dated October
1, 1946. Each bond will mature five years from its issue date. In case of the
death of the owner of any such bond payment may be made prior to maturity upon
proper application, at the option of such owner's survivors, as defined in the act
(see 324.9 hereof). Interest will accrue at the rate of 2H percent per annum from
the issue date to the date of maturity or to the last day of the month in which
payment is made, whichever may be earlier. Interest will be paid only with the
principal sum.
324.4 Transfer and pledge.—The bonds are nontransferable by sale, exchange,
assignment, pledge, hypothecation or otherwise, except that they may be assigned
by the owner to the Administrator of Veterans' Affairs for redemption by such
Administrator, for the purpose of paying premiums or the difference in reserve in
case of conversion to insurance on another plan or a policy loan made prior to
July 31, 1946, on a United States Government life insurance policy or a national
service life insurance policy under such regulations as may be prescribed by the
Administrator of Veterans' Affairs. Such assignment may not be used directly or
indirectly as a means of securing in cash, the proceeds of such bond or any portion
thereof prior to the date of its maturity or the maturity of such policy by death,
whichever is earlier (see 324.6 hereof). No claims by attempted transferees or by
persons loaning money on the security of the bonds will be recognized.
324.5 Claims of creditors.—By the terms of the act th'e bonds are exempt from
claims of creditors, including any claim of the United States, and shall not be
1 Section 324.11 hereof relates to payment of armed forces leave checks to survivors.
2 Pub. Law 704, 79th Cong.
166
REPORT OF T H E SECIRETARY OF THfi TREASURY
subject to a t t a c h m e n t , levy, or seizure by or under any legal or equitable process
whatever* Accordingly, no claims of creditors, . assignees for t h e benefit of
creditors, trustees or receivers in b a n k r u p t c y or equity will be recognized, and no
p a y m e n t of the bonds to any such persons will be made, either during the lifetime
of the person whose name is inscribed on t h e bonds or after his death.
824.6 Assignment to the Administrator of Veterans' Affairs.—Any registered
owner of an armed forces leave bond who desires to use his bond in p a y m e n t of
premiums or other p a y m e n t s in connection with United States Government life
irisurance or national service life insurance policies should mail or deliver his
bond to t h e office of the Veterans' Administration to which he pays his premiums.
T h e bond should be accompanied by a completed VA F o r m 9-1625, "Directions
for use of proceeds of armed forces leave b o n d s , " obtainable a t any Veterans'
Administration Oflftce. Before submitting t h e bond to the Veterans' Administration t h e assignment form printed on the b o t t o m of t h e back of t h e bond should,
be signed by t h e owner exactly as his n a m e appears on t h e face of the bond. No
certification .or witness to t h e signature of the Owner on such assignment form will
be required.
324.7 Payment to registered owner at maturity.—To secure p a y m e n t at m a t u r i t y
the registered owner should appear before one of the officers authorized to certify
requests for p a y m e n t , establish his identity and sign his name to t h e request for
p a y m e n t printed on the back of the bond. The signature should be in exactly
t h e form as his name is inscribed on the face. No power of a t t o r n e y to request
p a y m e n t will be recognized.
.
'
(a) Certification of request.—After t h e request for p a y m e n t has been signed t h e
certifying officer should complete and sign the certificate appearing a t t h e end of
t h e form for request for p a y m e n t a n d the bond should then be presented in person
or by mail to t h e Federal Reserve Bank of t h e district in which t h e owner resides
or to t h e Treasurer of t h e United States, Washington 25, D. C , or to such other
paying agent as m a y be designated by t h e Secretary of t h e Treasury. T h e use
of registered mail is desirable for the protection of t h e owner.
(b) Certifying ofiicers.—The following officers are authorized to certify requests
for p a y m e n t of armed forces leave bonds:
(1) Certain designated officers in t h e Treasury D e p a r t m e n t a t Washington;
(2) Officers of incorporated banks or t r u s t companies;
(3) Commissioned officers of the Army, N a v y , Marine Corps, a n d Coast
Guard of the United States (only for members of such establishments);
(4) T h e officer in charge of any home, hospital or other facility of t h e Veterans' Administration (only for patients and members of such facilities);
(5) Such other officers as m a y from time to time be designated by t h e Secret a r y for t h a t purpose.
(c) Instructions to certifying ofiicers.—Certifying officers should require positive
identification of t h e person signing a request for p a y m e n t .
324.8 Right to payment on death of owner.—Upon the death of an owner of an
armed forces leave bond the bond becomes payable only to his survivors in t h e
following order:
(a). Surviving wife or husband and children, if any, in equal shares;
(b) If such owner leaves no surviving spouse or children, then in equal shares
to such owner's surviving parents, if any. If there are no such survivors t h e
bond will be retired and the a m o u n t covered into the General F u n d of t h e Treasury, Accordingly, p a y m e n t will not be made to an executor or administrator of
the estate of a deceased registered owner, and if a bond should come into the
possession of such an executor or administrator, or other person not a survivor,
following the death of t h e owner it should be immediately delivered to one of t h e
survivors, if a n y ; otherwise forwarded to t h e Division of Loans a n d Currency,
Washington 25, D . C , with a signed s t a t e m e n t t h a t there are no known survivors,
,324,9 Payment to survivors.—Survivors of a deceased registered owner in t h e
order provided in t h e preceding section are entitled to receive p a y m e n t of an
armed forces leave bond a t their option a n d upon application to t h e Secretary of
t h e Treasury a t any time following t h e death of such registered owner, whether
before, upon or after m a t u r i t y of t h e bond. Apphcation for such p a y m e n t should
be made on F o r m PD2066, copies of which m a y be obtained from any Federal
Reserve Bank. See section 324.13 for instructions as to filing t h e application.
REPORT OF THE SECRETARY OF THE TREASURY
167
(a) Definition of survivors.—Survivors are defined in t h e act as fohows:
(1) "Spouse" means a lawful wife or h u s b a n d ;
'
•
(2) " C h h d r e n " .include—
(a) a legitimate child;
(b) a chhd legally adopted;
(c) a stepchild, if, a t t h e time of death of the member or former
member of t h e armed forces, such stepchild is a member of t h e
deceased's household;
(d) an illegitimate child, b u t in t h e case of a male member or former
male member of t h e armed forces only if he has been judicially
ordered or decreed to contribute to such chhd's support; has been
judicially decreed to be the p u t a t i v e father of such child; or has
acknowledged under oath in writing t h a t he is t h e father of such
child; and
(e) a person to whom t h e member or former member of t h e armed
forces a t t h e time of d e a t h stands in loco parentis and so stood
for not less t h a n twelve m o n t h s prior to t h e date of d e a t h ;
(3) " P a r e n t " includes father a n d mother, grandfather and grandmother,
stepfather a n d stepmother, father and m o t h e r through adoption, a n d
persons who, for a period of not less t h a n one year prior to t h e d e a t h
of t h e member or former member of the armed forces, stood in loco
parentis to such member or former member: Provided, T h a t not
more t h a n two parents m a y receive t h e benefits provided under this
act and preference shall be given to t h e parent or parents, n o t exceeding two, who actually exercised parental relationship a t t h e t i m e
of or most nearly prior to t h e date of t h e death of such member or
former member of t h e armed forces. ^
(b) Payment only.—Only p a y m e n t of t h e entire a m o u n t of t h e bond will be
permitted. No partial p a y m e n t and no reissue of t h e bond in p a r t may be made.
P a y m e n t in all cases will be made by separate checks drawn in t h e proper a m o u n t s
to t h e individual survivors, except t h a t in t h e case of a survivor under 17 years of
age or under mental disability, t h e check will be drawn either to t h e guardian of
such survivor, if t h e Secretary has received notice of t h e a p p o i n t m e n t of such
guardian, or in t h e absence of such notice, to a proper person selected by t h e
Secretary, for t h e use and benefit of such survivor, without t h e necessity of
resorting to judicial proceedings for t h e a p p o i n t m e n t of a legal representative.
(c) All survivors must join.—Since no partial p a y m e n t or reissue m a y be made,
all survivors of t h e class entitled to receive p a y m e n t m u s t unite in t h e application,
except t h a t iri t h e case of survivors under 17 years of age or under mental disability,
legally qualified guardians, if any, m a y sign in their behalf, and in t h e absence of
such legal guardians, such proper persons as t h e Secretary m a y select to act on
behalf of such survivors.
(d) Time of vesting of survivors' rights:—A survivor's right to receive p a y m e n t
becomes fixed upon t h e d a t e of t h e death of t h e owner. If a survivor dies before
receiving p a y m e n t t h e right to receive p a y m e n t of his or her share of t h e bond
passes t o t h e estate of such survivor. For example, if t h e registered owner dies
and leaves a widow and two children and t h e widow dies prior to receipt of p a y ment, her share passes to her estate and p a y m e n t of t h e bond will be made onethird t o t h e widow's representative and one-third t o each of t h e surviving children.
If no executor or administrator is appointed for t h e estate of a deceased survivor,
settlement may be made in t h e same manner as provided for t h e settlement
without administration of estates of deceased owners of United States registered
bonds.
324,10 Loss, theft, destruction, mutilation or defacement of bonds.—If an
armed forces leave bond is lost, stolen, destroyed, mutilated or defaced, relief m a y
be granted before m a t u r i t y by t h e issue of a substitute bond to be marked "dupli:eate", or a t or after m a t u r i t y b y p a y m e n t of t h e bond in accordance with t h e
provisions of section 8 of t h e Government Losses in Shipment Act (U, S. C, 1940
Ed., title 31, sec. 738a). Relief in such cases will be governed by t h e regulations
contained in D e p a r t m e n t Circular 300, as amended. I n any such ease immediate
notice of t h e facts, together with a complete description of t h e bond (including
n a m e and address of owner, bond serial number, a m o u n t , and issue d a t e ) , should
be given to t h e Treasury D e p a r t m e n t , Division of Loans and Currency, Washington 25, D . C , which will forward appropriate forms for requesting relief, together
with full instructions. Usuahy such relief wiU be granted without requiring a,
bond of irideirmity.
168
REPORT OF THE SECRETARY OF THE TREASURY
324.11 Checks.—,
(a) ^ Payment to survivors of checks issued to the registered owner (1) in full
settlement of leave, (2) in payment of bonds, or (3) in payment of the odd amount
due the member or former member of the armed forces over and above the bond
issued in settlement of leave, will be made to the persons entitled as provided in
the above regulations relating to bonds. Accordingly, such checks received by
executors or a.dihinistrators of deceased registered owners should not be deposited
for collection but should be turned over, to the. survivors or returned to the issuing
oflice with a statement of the facts.
(b) In the case of a survivor entitled to payment who dies before receiving
and collecting the check issued in the name of the survivor, payment will be made
to his estate,
II. PROCEDURE
324.12 Surrender of bonds at maturity by registered owner.—Registered owners
desiring payment of their bonds at maturity, after completing the request for
payment in accordance with the provisions of 324.7 hereof, should forward the
bonds to the appropriate Federal Reserve Bank or to the Treasurer of the United
States, Washington .25, D. C. The use of registered mail is desirable for the protection of the"owner. Federal Reserve Banks as fiscal agents of the United'States
are authorized to make payment of bonds so presented if in proper form. Bonds
marked "duplicate" issued in lieu of lost, stolen, destroyed, mutilated or defaced
bonds must be submitted to the Treasury Department, Division of Loans and
Currency, Washington 25, D. C , as Federal Reserve Banks are not authorized
to pay such bonds.
324.13 Payment to survivors.—Survivors- applying for payment under section
324.9 hereof should forward the bonds, accompanied by the applications on Form
PD 2066, to the appropriate Federal Reserve Bank or to the Treasury Department, Division of Loans and Currency, Washington 25, D, C. Usually payment
will be expedited by the use of the Federal Reserve Banks, The form must be
accompanied in each case by (1) a death certificate for the registered owner,
(2) an explanation of any discrepancy between the name as given on the face of
the bond and the narae as given in the death certificate, and (3) in case of an
application by parents other than the own father and mother still living together,
a signed and sworn statement giying the basis for the claim of parental relationship as defined in the act (see 324,9 hereof). The right is reserved to require other
and further evidence in cases where such action appears desirable. Federal
Reserve Banks as fiscal agents of the United States are authorized to make payment to survivors upon applications in accordance with these regulations, but may
submit any doubtful or unusual cases to the Treasury Department, Division of
Loans and Currency, for final decision.
324.14 Designation of agents to make determination.—The various Federal
Reserve Banks as fiscal agents of the United States, the Fiscal Assistant Secretary
ofthe Treasury, the Assistant to the Fiscal Assistant Secretary, the Commissioner
and Associate Commissioner of the Public Debt, and the: Chief of the Division of
Loans and Currency are designated to make determinations on behalf of the
Secretary as provided in the act.
III. GENERAL
\ 324.15 Taxation.—Under the act all amounts paid or payable under section 6
in cash, bonds or both (except interest in the case of bonds) shall be exempt from
taxation. :
324.16 Address for communications.—All inquiries after issue in connection
with the payment of or transactions in armed forces leave bonds should be
addressed to the Federal Reserve Bank of the district in which the owner resides,
or to the Treasury Department, Division of Loans and Currency, Washington 25,
D, C , except that any inquiries regarding the use of such bonds in connection
with Government life insurarice or national service life insurance payments should
be addressed to the Office of the Veterans' Administration to which the assured
.lias been paying premiums, or to the Director of Insurance Accounts Service,
Veterans'Administration, Washington 25, D, C.
324.17 Additional regulations.—The Secretary of the Treasury may at any
time, or from time to time, prescribe additional, supplemental, amendatory or
revised rules a,nd regulations governing armed forces leave bonds.
Publication of notice and public procedure thereon with respect to these regulations are found to be contrary tothe|pubhc interest for-the reason i:hat such:;
REPORT OF THE SECRETARY OF THE TREASURY
169
notice and public procedure would expose interested parties to u n d u e delay in
t h e exercise of rights provided by t h e act.
These regulations will become effective immediately, the requirements of section 4 (c) of the Administrative Procedure Act (Public Law 404, 79th Congress)
being dispensed with in order t h a t survivors entitled m a y t a k e p r o m p t a d v a n t a g e
of their rights under t h e act. .
JOHN W ,
SNYDER,
Secretary of the Treasury,
Exhibit 20
First a m e n d m e n t , November 15, 1946, to D e p a r t m e n t Circular No. 750, Revised,
prescribing regulations governing payments by b a n k s and other financial
institutions in connection with the redemption of United States savings bonds
TREASURY
DEPARTMENT,
Washington, November 15, 1946,
Sec. 321,5 of Treasury D e p a r t m e n t Circular No, 750, Revised, dated J u n e 30,
1945 (31 C, F . R., 1945 Supp., P a r t 321), is hereby amended to r e a d :
Sec. 321.5. Reimbursement of agents' costs.—(a) Each paying agent shall be
entitled to receive reimbursement for its service for all bonds paid hereunder a n d
accounted for by it in each calendar quarter, according to t h e following scale:
15 cents each for t h e first 1,000 bonds
10 cents each for all over 1,000 bonds
E a c h Federal Reserve Bank is authorized to estabhsh a definite a n d regular .
closing time for determining those paid bonds to be considered as accounted for
in a calendar quarter. Such closing time m a y be based upon a time t h a t t h e
paid bonds are forwarded to, or received by, t h e Federal Reserve Bank a n d shall
be uniformly applied throughout the district of such Bank. T h e scale of rates
shall be applicable separately to t h e agent and to each of its branches utilized in
making p a y m e n t s under this circular, if t h e bonds paid b y each are separately
scheduled and accounted for. T h e p a y m e n t of such a m o u n t as t h e agent is
entitled to receive shall be m a d e by t h e Federal Reserve Bank on behalf of t h e
Treasury D e p a r t m e n t ,
(b) Paying agents shall not m a k e a n y charge whatever to owners of savings
bonds in connection with p a y m e n t s hereunder,
J O S E P H J. O ' C O N N E L L ,
Jr.,
Acting Secretary of the Treasury.
Exhibit 21
S t a t e m e n t , M a r c h 7, 1947, on the maintenance of the interest rate policy of the
Government
I n response to inquiries received a t t h e Treasury today. Secretary Snyder
announced t h a t no changes in t h e interest rate pohcy of t h e Government a t this
time are under contemplation.
H e cautioned against any interpretation of recent newspaper articles indicating
t h a t a rise in rates is imminent. H e said t h a t all phases of debt m a n a g e m e n t
are under constant study by t h e Treasury and Federal Reserve, a n d t h a t there
has been no change in t h e policy annoimced by t h e President in his Budget Message t h a t "interest rates will be kept a t present low levels through continued
cooperation of t h e Treasury" D e p a r t m e n t and t h e Federal Reserve System."
T b e technical methods by which t h e Government's interest r a t e policy will be
carried out are also under constant s t u d y in collaboration with the Federal
Reserve Open M a r k e t Committee and others interested in the subject.
T h e Secretary stated t h a t t h e Treasury is alert to t h e Government bond m a r ket and t h e effect of its financing on bank reserves a n d t h e needs of different
classes of investors.
170
REPORT OF THE SECRETARY OF THE TREASURY
Exhibit 22
An act to amend further section 4 of the Public Debt Act of 1941, as amended,
and clarify its application, and for other purposes
[Public Law 116, 80th Cong., H. R, 2872]
Be it enacted hy the Senate and House of Representatives of the United States of
America in Congress assembled. That section 4 of the Public Debt Act of 1941
(Pubhc, Numbered 7, Seventy-seventh Congress, first session), as amended-by
section 6 of the Public Debt Act of 1942 (Pubhc, Numbered 510, Seventy-seventh
Congress, second session), hereby is amended further to read as fohows':
" S E C 4. (a) Interest upon obhgations, and "dividends, earnings, or other
income from shares, certificates, stock, or other evidences of ownership, and gain
from the sale or other disposition of such obhgations and evidences of ownership
issued on or after the effective date of the Pubhc Debt Act of 1942 by the United
States or an}^ agency or instrumentality thereof shall not have any exemption,
as such, and loss from the sale or other disposition of such obligations or evidences
of ownership shall not have any special treatment, as such, under the Internal
Revenue Code, or laws amendatory or supplementarj^ thereto; except that any
such obligations which the United States Maritime Commission or the Federal
Housing Administration had, priorto March 1, 1941, contracted to issue at a future
date, shall when issued bear such tax^exemption privileges as were, at the time of
such contract, provided in the law authorizing their issuance. For the purposes
of this subsection a Territory, a possession of the United States, and the District
of Columbia, and any political subdivision thereof, and any agency or instrumentality of any one or more of the foregoing, shall not be considered as an agency
or instrumentality of the United States,
"(b) The provisions of this section shall, with respect to such obligations and
evidences of ownership, be considered as amendatory of and supplementary to
the respective Acts or parts of Acts authorizing the issuance of such obligations
and evidences of ownership, as amended and supplemented.
"(c) Nothing contained herein shall be construed to amend or repeal sections
114 and 115 of the Revenue Act of 1941."
Approved June 25, 1947.
Exhibit 23
Second amendment, July 3,1947, to Department Circular No. 696, First Revision,
relating to Series C savings notes
TREASURY DEPARTMENT,
Washington, July 3, 1947.
In order to conform to the language of Public Act No. 116 of the 80th Congress, Section II, Paragraph 6 of Department Circular No, 696, First Revision,
as amended (filed with the Division of the Federal Register, November 23, 1943)
is hereby revised to read as fohows:
"6. Taxation.—Income derived from the notes shall be subject to all taxes
imposed under the Internal Revenue Code or laws amendatory or supplementary
thereto. The notes shall be subject to estate, inheritance, gift or other excise
taxes, whether Federal or State, but shall be exempt from all taxation now or
hereafter imposed on the principal or interest thereof by any State, or any of the
possessions of.the United States, or by any local taxing authority."
JOHN W. SNYDER,
Secretary of the Treasury.
REPORT OF THE SECRETARY OF THE TREASURY
171
SECURITIES GUARANTEED BY THE UNITED STATES
Exhibit 24
Partial redemption, before maturity, of 2^4 percent housing insurance fund
debentures, Series D (fourth call)
/
[Department Circular No. 795. Public Debt]
*
TREASURY DEPARTMENT,
Washington, October 1, 1946.
To Holders of 2yA Percent Housing Insurance Fund Debentures, Series D:
1. NOTICE OF F O U R T H CALL FOR PARTIAL REDEMPTION, BEFORE MATURITY, OF 2H
PERCENT HOUSING INSURANCE FUND DEBENTURES, SERIES D
The Federal Housing Commissioner, with the approval of the Secretary of the
Treasury, has issued the following notice of call for partial redemption and offer
to purchase with respect to 2% percent housing insurance fund debentures,
Series D:
"Pursuant to the authority conferred by the National Housing Act (48 Stat.
1246; U. S, C , title 12, sec, 1701 et seq.) as amended, public notice is hereby given
that 2^{ .percent housing insurance fund debentures. Series D, of the denomination
and serial numbers designated below, are hereby called for redemption, at par and
accrued interest, on January 1, 1947, on which date interest on such debentures
shall cease:
2y4 percent housing insurance f^ind debentures. Series D
Serial numbers
(AU numbers
Denomination
inclusive)
$10,000__.-__A._
755 to 854
"The debentures first issued as determined by the serial numbers were selected
for redemption by the Commissioner, Federal Housing Administration, with the
approval of the Secretary of the Treasury.
"No transfers or denominational exchanges in debentures covered by the foregoing call will be made on the books maintained by the Treasury Department on
or after October 1, 1946, This does not affect the right of the holder of a debenture
to sell and assign the. debenture on or after October I, 1946, and provision will
be made for the payment of final interest due on January 1, 1947, with the principal
thereof to the actual owner, as shown by the assignments thereon.
"The Commissipner of the Federal Housing Administration hereby offers to
purchase any debentures included in this call at any time from October 1, 1946, to
December 31, 1946, inclusive, at par and accrued interest, to date of purchase.
"Instructions for the presentation and surrender of debentures for redemption
on or after, January 1, 1947, or for purchase prior to that date will be given by the
Secretary of the Treasury,"
II, TRANSACTIONS IN FOURTH-CALLED
DEBENTURES
1. The debentures included in the foregoing notice of call for partial redemption
on January 1, 1947, are hereby designated fourth-called 2^{ percent housing
insurance fund debentures. Series D, and are hereinafter referred to as fourthcalled debentures,
2, Transfers and denominational exchJanges in fourth-called, debentures will
terminate at the close of business on September 30, 1946.
III. REDEMPTION
OR PURCHASE
1. Holders of fourth-called debentures will be entitled to have such debentures
redeemed and paid at par on January 1, 1947, with interest in full to that date, at
the rate of $13.75 per $1,000, Interest on fourth-called debentures will cease on
January 1, 1947.
2. Holders of fourth-called debentures have the privilege cOf presenting such
debentures at any time from October 1 to December 31, 1946, inclusive, for purchase at par and accrued interest, at the rate of $0.074728 per $1,000 per day from
July 1, 1946, to date of purchase.
172
REPORT OF THE SECRETARY OF THE TREASURY
ly. RULES A N D REGULATIONS GOVERNING REDEMPTION A N D PURCHASE
1. The United States Treasury Department is the agent of the Federal Housing
Commissioner for the redemption and purchase of fourth-called debentures. In
accordance with regulations adopted by the Federal Housing Commissioner and
approved by the Secretary of the Treasury, the assignment, redemption, and
purchase of fourth-called debentures will be governed by the general regulations
of the, Treasury Department with respect to United States bonds and notes, so
far as applicable, except as otherwise provided herein.
2. Fourth-called debentures presented for redemption on January 1, 1947, or
for purchase from October 1 to December 31, 1946, inclusive, must be assigned by
the registered payee or assignee thereof or by their duly constituted representatives in the form indicated in paragraph 3 of this section, and should thereafter be
presented and surrendered to any Federal Reserve Bank or to the Division of
Loans and Currency, Treasury Department, Washington 25, D, C , accompanied
by appropriate written advice. (IJse Form PD 2067,) The debentures must, be
delivered at the expense and risk of the holders, (See paragraph 8 of this section,)
In all cases checks in payment of principal and final interest will be mailed to the
address given in the form of advice accompanying the debentures when surrendered,
3. If the registered payee or an assignee, holding under proper assignment from
the registered payee desires that payment be made to him, the-debentures should
be assigned by such payee or assignee or by a duly constituted representative to
"The Federal Housing Commissioner for redemption" or to "The Federal Housing
Commissioner for purchase," according to whether the debentures are to be presented for redemption on January 1, 1947, or for purchase prior to that date. If
it is desired for any reason that payment be made to some other person
without intermediate assignment, the debentures should be assigned to "The
Federal Housing Commissioner for redemption (or purchase) for the account
of —
," inserting the name and address of the person to whom
payment is to be made.
4. An assignment in blank or other assignment having similar effect will be
recognized, but in that event payment will be made to the person surrendering
the debenture for redemption or purchase since, under such an assignment, the
debenture becomes in effect payable to bearer. Assignments in blank or assignments having similar effect should be avoided, if possible, in order not to lose the
protection afforded by registration,
5. Final interest on any fourth-called debentures, whether purchased prior to or
redeemed on or after January 1, 1947, will be paid with the principal in accordance
with the assignments on the debentures surrendered,
6. All assignments must be made on the debentures themselves unless otherwise directed by the Treasury Department. Detached assignments will be recognized and accepted in any particular case in which the use of detached assignments is specifically authorized by the Treasury Department. Any assignment
not made upon the debenture is considered a detached assignment.
7. A fourth-called debenture registered in the name of, or assigned to, a corporation, will be paid to such corporation on or after January 1, 1947, upon an
appropriate assignment for that purpose executed on behalf of the corporation by
a duly authorized officer thereof. An assignment so executed and duly attested
in accordance with Treasury Department regulations will ordinarily be accepted
without proof of the officer's authority. In all cases coming under this provision
payment will be made only by check drawn to the order of the corporation.
Proof of the authority of the officer assigning on behalf of a corporation will be
required, in accordance, with the general regulations of the Treasury Department,
in the case of assignments foi* purchase prior to January 1, 1947, and in case of
assignments for redemption on or after January 1, 1947, for the account of any
person other than the corporation.
8. Debentures presented for redemption or purchase under this circular must
be delivered to a Federal Reserve Bank or to the Division of Loans and Currency,
Treasury Department, Washington 25, D. C , at the expense and risk of the holder.
Debentures bearing restricted assignments may be forwarded by registered mailj
but debentures bearirig unrestricted assignments should be forwarded by registered
mail insured or by express prepaid.
9. In order to facilitate the redempition of fourth-called debentures on January
1, 1947, any such debenture may be presented and surrendered in the manner
herein prescribed in advance of that date but not before December 1^ 1946. Such
REPORT OF THE SECRETARY OF THE TREASTJRY
173
early presentation by holders will insure p r o m p t p a y m e n t of principal a n d interest
when due.
'
Y, GENERAL PROVISIONS
1. Any further information which m a y be desired regarding t h e redemption of
fourth-called debentures under this circular m a y be obtained from a n y Federal
Reserve Bank or from t h e Division of Loans a n d Currency, Treasury D e p a r t ment, Washington 25, D . C , where copies of t h e Treasury D e p a r t m e n t ' s regulations governing assignments m a y be obtained.
2. As fiscal agents of t h e United States, Federal Reserve Banks are authorized
and requested to perform a n y necessary acts under this-circular. T h e Secretary
of t h e Treasury m a y a t a n y time or from time t o time prescribe supplemental
a n d a m e n d a t o r y rules a n d regulations governing t h e m a t t e r s covered b y this circular, which will be communicated promptly to t h e registered owners of fourthcalled debentures.
J O H N W . SNYDER,
Secretary of the Treasury.
Exhibit 25
Redemption, before maturity, of 23/4 percent mutual mortgage insurance fund
d e b e n t u r e s . Series B (thirteenth call) a n d Series E (fourth call)
^
[Department Circular No. 803. Public Debt]
TREASURY DEPARTMENT,
Washington, April 11, 1947.
To Holders of ^% Percent Mutual Mortgage Insurance F u n d Debentures, Series B
and E :
I. NOTICE OF CALL FOR REDEMPTION, B E F O R E MATURITY, OF 2H P E R C E N T MUTUAL
MORTGAGE INSURANCE F U N D D E B E N T U R E S , S E R I E S B AND E
The Federal Housing Commissioner, with t h e approval of t h e Secretary of t h e
Treasury, has issued t h e following notice of call for redemption a n d offer to purchase with respect t o 2^^ percent m u t u a l mortgage insurance fund deberitures,
Series B a n d E :
" P u r s u a n t to t h e a u t h o r i t y conferred b y t h e National Housing Act (48 Stat.
1246; U. S. C , title 12, sec, 1701 et seq.) as amended, public notice is hereby
given t h a t 2% percent m u t u a l mortgage insurance fund debentures. Series B a n d
E, of t h e denominations a n d serial numbers designated below, are hereby called
for redemption, a t p a r a n d accrued interest, on July 1, 1947, on which date interest
on such debentures shall cease:
2ji percent mutual mortgage insurance 2y4, percent mutual mortgage insurance
fund debentures. Series B
fund debentures. Series E
Serial numbers
Serial numbers
(all numbers
(all numbers
Denomination
inclusive)
Denomination
inclusive)
$50---1,564 to 1,565
$50
:___
23 t o 30
100
5,787 to 5,798
100
91 to 107
500
1,832 to 1,833
500->.
24 to 27
1,000
7,037 to 7,050 1,000
116 to 149
5,000
6
" T h e debentures first issued, as determined by t h e serial numbers, were selected
for redemption b y t h e Commissioner, Federal Housing Administration, with t h e
a p p r o v a l o f t h e Secretary of t h e Treasury.
'
" N o transfers or denominational exchanges in debentures covered by t h e foregoing call will be made on t h e books maintained b y t h e Treasury D e p a r t m e n t on
or after April 1, 1947, This does not affect t h e right of t h e holder of a debenture
• to sell a n d assign t h e debenture on or after April 1, 1947, a n d provision will be
made for t h e p a y m e n t of final interest due July 1, 1947, with t h e principal thereof
to t h e actual owner, as shown by t h e assignments therieon.
174
REPORT OF THE SECRETARY OF THE TREASURY
"The Commissioner of the Federal Housing Administration hereby offers to
purchase any debentures included in this call at any time from April 1, 1947, to
June 30, 1947, inclusive, at par and accrued interest, to date of purchase.
"Instructions for the presentation and surrender of debentures for redemption
on or after July 1, 1947, or for purchase prior to that date will be given by the
Secretary of the Treasury."
II, TRANSACTIONS I N CALLED D E B E N T U R E S
1, The debentures included in the foregoing notice of call for redemption on
July 1, 1947, are hereby-designated thirteenth-called 2% percent mutual mortgage
insurance fund debentures, Series B, and fourth-called 2% percent mutual mortgage insurance fund debentures, Series E, and are hereinafter referred to as
thirteenth-called and fourth-called debentures.
2. Transfers and denominational exchanges in thirteenth-called and fourthcalled debentures will terminate at the close of business on March 31, 1947,
III, REDEMPTION OR PURCHASE
1. Holders of thirteenth-called and fourth-called debentures will be entitled to
have such debentures redeemed and paid at par on July 1, 1947, with interest in.
full to that date, at the rate of $13.75 per $1,000. Iriterest on thirteenth-called
and fourth-called debentures will cease on July 1, 1947.
2. Holders of thirteenth-called and fourth-called debentures have the privilege
of presenting such debentures at any time from April 1 to June 30, 1947, inclusive,
for purchase at par and accrued interest, at the rate of $0.075967 per $1,000 per
day from January 1, 1947, to date of purchase.
IV.
RULES AND REGULATIONS GOVERNING REDEMPTION AND PURCHASE
1. The United States Treasury Department is the agent of the Federal Housing
Commissioner for the redemption and purchase of thirteenth-called and fourthcalled debentures. In accordance with regulations adopted by the Federal
Housing Commissioner and approved by the Secretary of the Treasury, the
assignment, redemption, and purchase of thirteenth-called and fourth-called
debentures will be governed by the general regulations of the Treasury Department with respect to United States bonds and notes, so far as applicable, except
as otherwise provided herein.
2. Thirteenth-called and fourth-called debentures presented for redemption on
July 1, 1947, or for purchase from April 1 to June 30, 1947, inclusive, must be
assigned by the registered payee or assignee thereof or by their duly constituted
representatives in the form indicated in paragraph 3 of this section, and should
thereafter be presented and surrendered to any Federal Reserve Bank or to
the Division of Loans and Currency, Treasury Department, Washington 25, D. C ,
accompanied by appropriate written advice. (Use Form PD 2108.) The debentures must be delivered at the expense arid risk of the holders. (See paragraph 8
of this section.) In all cases checks in payment of principal and final interest will
be mailed to the address given in the form of advice accompanying the debentures
when surrendered,
3. If the registered payee or an assignee holding under proper assignment from
the registered payee desires that payment be made to him, the debentures should
be assigned by such payee or assignee or by a duly constituted representative to
"The Federal Housing Commissioner for redemption" or to "The Federal Housing
Commissioner for purchase," according to whether the debentures are to be presented for redemption on July 1, 1947, or for purchase prior to that date. If it is
desired for any reason that payment be made to some other person without internaediate assignment, the debentures should be assigned to "The Federal Housing
Commissioner for redemption (or purchase) for the account of
-.
,"
inserting the name and address of the person to whom payment is to be made.
4. An assignment in blank or other assignment having similar effect will be
recognized, but in that event payment will be made to the person surrendering
the debenture for redemption or purchase since, under such an assignment, the.
debenture becomes in effect payable to bearer. Assignments in blank or assignments having similar effect should be avoided, if possible, in order not to lose the
protection afforded by registration.
REPORT OF THE SECRETARY OF °THE TREASURY
175
5. Final interest on any thirteenth-called and fourth-called debentures, whether
purchased prior to or redeemed on or after July 1, 1947, will be paid with the
principal in accordance with the assignments on the debentures surrendered.
6. All assignments must be made on the debentures themselves unless otherwise
directed by the Treasury Department, Detached assignments will be recognized
and accepted in any particular case in which the use of detached assignments is
specifically authorized by the Treasury Department. Any assignment not made
lipon the debenture is considered a detached assignment.
7. A thirteenth-called or a fourth-called debenture registered in the name of, or
assigned to, a corporation, will be paid to such corporation on or after July 1, 1947,
upon an appropriate assignment for that purpose executed on behalf of the
corporation by a duly authorized ofiicer thereof. An assignment so executed and
duly attested in accordance with Treasury Department regulations will ordinarily
be accepted without proof of the officer's authority. In all cases coming under this
provision payment will be made only by check drawn to the order of the corporation. Proof of the authority, of the officer assigning on behalf of a corporation will
be required, in accordance, with the general regulations of the Treasury Department, in the case of assignments for purchase prior to July 1, 1947, and in case of
assignments for redemption on or after July 1, 1947, for the account of any person
other than the corporation.
8. Debentures presented for redemption or purchase under this circular .must
be delivered to a Federal Reserve Bank or to the Division of Loans and Currency,
Treasury Department, Washington 25, D, C , at the expehse and risk of the holder.
Debentures bearing restricted assignments may be forwarded by registered mail,
but debentures bearing unrestricted assignments should be forwarded by registered
mail insured or by express prepaid.
9. In order to facilitate the redemption of thirteenth-called and fourth-called
debentures on July 1, 1947, any such debenture may be presented and surrendered
in the manner herein prescribed in advance of that date but not before June 1, 1947.
Such early presentation by holders will insure prompt payment of principal and
interest when due.
V. GENERAL PROVISIONS
1, Any further information which may be desired regarding the redemption of
thirteenth-called and fourth-called debentures under this circular may be obtained
from any Federar Reser.ve Bank or from the Division, of Loans and Currency,
Treasury Department, Washington 25, D, C , where copies of the Treasury
Department's regulations governing assignments may be obtained,
2. As fiscal agents of the United States, Federal Reserve Banks are authorized
and requested to perform any necessary acts under this circular. The Secretary
of the Treasury may at any time or from time to time prescribe supplemental and
ameridatory rules and regulations governing the matters covered by this circular,
which will be communicated promptly to the registered owners of thirteenthcalled and fourth-called debentures.
V
A. L, M, WIGGINS,
Acting Secretary of the Treasury,
Exhibit 26
Redemption, before maturity, of 23/4 percent war housing insurance ftind
debentures. Series G
[Department Circular No, 804. Public Debt]
TREASURY
DEPARTMENT,
Washington, April 11, 1947.
To Holders of 2y4 Percent War Housing Insurance Fund Debentures, Series G:
I. N O T I C E O F CALL FOR REDEMPTION, BEFORE MATURITY, OF 2H PERCENT WAR
HOUSING INSURANCE FUND DEBENTURES, SERIES G
The Federal Housing Commissioner, with the approval of the Secretary of the
Treasury, has issujedP'the following notice of call for redemption and offer to
purchase with respect to. 2% percent war housing insurance fund debentures,
Series G:
176
REPORT OF THE SECRETARY OF THE TREASURY
"Pursuant to the authority conferred by the National Housing Act (48 Stat.
1246; U. S, C , title 12, sec, 1701 et seq.) as amended, public notice is hereby
given that 2% percent war housing insurance fund debentures, Series G, of the
denominations and. serial numbers designated below, are hereby called for redemption, at par and accrued interest, on July 1, 1947, on which date interest
on such debentures shall cease:
2y4 percent war housing insurance fund debentures. Series G
Serial numbers
Denomination
(all numbers inclusive)
$50
-501 to 558
100
2, 001 to 2, 242
500
1,001 to 1,058
1, 000
3, 001 to 3, 354
5,000
251 to 284
"The debentures first issued as determined by the serial numbers were selected
for redemption by the Commissioner, Federal Housing Administration, with the
approval of the Secretary of the Treasury.
"No transfers or denominational exchanges in debentures covered by the foregoings call will be made on the books maintained by the Treasury Department
on or after April 1, 1947. This does not affect the right of the holder of a debenture to sell and assign the debenture on or after April 1, 1947, and provision
will be.made for the payment of final interest due on July 1, 1947, with the principal
thereof to the actual owner, as shown by the assignments thereon,
"The Commissioner of the Federal Housing Administration hereby offers to
purchase any debentures included in this call at any time from April 1, 1947, to
June 30, 1947, inclusive, at par and accrued interest, to date of purchase.
"Instructions for the presentation and surrender of debentures for redemption
on or after July 1, 1947, or for purchase prior to that date will be given by the
Secretary of the Treasur}^"
II. TRANSACTIONS IN CALLED DEBENTURES
1. The debentures included in the foregoing notice of call for redemption on
July 1, 1947, are hereby designated called 2% percent war housing insurance fund
debentures. Series G, and are hereinafter referred to as called debentures.
2. Transfers and denominational exchanges in called debentures will terminate
at the close of business on March 31, 1947.
III. REDEMPTION OR PURCHASE
1. Holders of called debentures will be entitled to have such debentures redeemed and paid at par on July 1, 1947,^ with interest in full to that date, at the
rate of $13.75 per $1,000. Interest on cahed debentures will cease on July 1', 1947.
2. Holders of called debentures have the privilege of presenting such debentures
at any time from April 1 to June 30, 1947, inclusive, for purchase at par and accrued interest, at the rate of $0.075967 per $1,000 per day from January 1, 1947,
to date of purchase.
IV. RULES A N D REGULATIONS GOVERNING REDEMPTION A N D PURCHASE
1. The United States Treasury Department is the agent of the Federal Housing
Commissioner for the redemption and purchase of called debentures. In accordance with regulations adopted by the Federal Housing Commissioner and approved by the Secretary of the Treasury, the assignment,- redemption, and purchase of called debentures will be governed by the general regulations of the
Treasury Department with respect to United States bonds and notes, so far as
applicable, except as otherwise provided herein.
2. Called debentures presented for redemption on July 1, 1947, or fpr purchase
from April 1 to June 30, 1947, inclusive, must be assigned b.y the registered payee
or assignee thereof or by their duly constituted representatives in the. form indicated in paragraph 3 of this section, and should thereafter be presented and surrendered to any Federal Reserve Bank or to the Divisibn of Loans and Currency,.
Treasury . Department, .Washington 25, D. • C.,-. accompanied, by. apprppriate:
written advice. (Use Form PD 2106.) The debentures must be deliYeje^,:"^jb,
REPORT OF THE SECRETARY OF THE TREASURY
177
the expense and risk of the holders. (See paragraph 8 of this section.) In all
cases checks in payment of principal and final interest will be mahed to the address
given in the form of advice accompanying the debentures when surrendered.
3. If the registered payee or an assignee holding under proper assignment from
the registered payee desires that payment.be made to him, the debentures should
be assigned by such payee or assignee or by a duly constituted representative to
"The Federal Housing Commissioner for redemption" or to "The Federal Housing
Commissioner for purchase," according to whether the debentures are to be
presented for redemption on July 1, 1947, or for purchase prior to that date. If
it is desired for any reason that payment be made to some other person without
intermediate assignment, the debentures should be assigned to "The Federal
Housing Commissioner for redemption (or purchase) for the account of
:
-," inserting the name and address of the person to whom payment is to be made.
4. An assignment in blank or other assignment having similar effect will be
recognized, but in that event payment will be made to the person surrendering
the debenture for redemption or purchase since, under such an assignment, the
debenture becomes in effect payable to bearer. Assignments in blank or assignments having similar effect should be avoided, if possible, in order not to lose the
protection afforded by registration*
5. Final interest on any called debentures, whether purchased prior to or redeemed on or after July 1, 19.47, will be paid with the principal in accordance
with the assignments on the debentures surrendered.
6. All assignments must be made on the debentures themselves unless otherwise directed by the Treasury Department. Detached assignments will be recognized and accepted in any particular case in which the use of detached assignments
is specifically authorized by the Treasury Department.. Any assignment nbt
made upon the debenture is considered a detached assignment.
7. A called debenture registered in the name of, or assigned to, a corporation,
will be paid to such corporation on or after July 1, 1947, upon an appropriate
assignment for that purpose executed on behalf of the corporation by a duly
authorized officer thereof. An assignment so executed and duly attested in accordance with Treasury Department regulations will ordinarily be accepted without
proof of the officer's authority. In all cases coming under this provision payment"
will be made only by check drawn to the order of the corporation. Proof of the
authority of the officer assigning on behalf of a corporation will be required, in
accordance with the general regulations of the Treasury Department, in the case
of assignments for purchase prior to July 1, 1947, and in case of assignments for
redemption on or after July 1, 1947, for the account of any person other than the
corporation.
8. Debentures presented for redemption or purchase under this circular must
be delivered to aFederal Reserve Bank or to the Division of Loans and Currency,
Treasury Department, Washington 25, D, C , at the expense and risk of the holder.
Debentures bearing restricted assignments may be forwarded by registered riaail,
but debentures bearing unrestricted assignments should be forwarded by registered
mah insured or by express prepaid.
9. In order to facilitate the redemption of called debentures on July 1, 1947,
any such debenture may be presented and surrendered in the manner herein
prescribed in advance of that date but not before June 1, 1947.. Such early presentation by holders will insure prompt paymerit of principal and interest
when due.
•
•
V. GENERAL PROVISIONS
1. Any further information which may be desired regarding the redemption of
called debentures under this circular may be obtained from any Federal Reserve
Bank or from the Division of Loans and Currency, Treasury Department, Washington 25, D . C , where copies of the Treasury Department's regulations governing
assignments may be obtained,
2. As fiscal agents of the United States, Federal Reserve Banks are authorized
and requested to perform any necessary acts under this circular. The Secretary
ofthe Treasury may at any time or from time.to time prescribe supplemental and
amendatory rules and regulations governing the matters covered by this circular,
which will be communicated promptly to the registered owners of called debentures.
A. L. M. WIGGINS,
Acting Secretary of the Treasury,
178
REPORT OF THE SECRETARY OF THE TREASURY
Exhibit 27
Partial redemption, before maturity, of ly^ percent war housing insurance fund
debentures, Series H
[Department Circular No. 805. Public Debt]
TREASURY
DEPARTMENT,
Washington, April 11, 1947.
To Holders of 2yi Percent War Housing Insurance Fund Debentures, Series H:
I. N O T I C E OF CALL FOR PARTIAL REDEMPTION, BEFORE MATURITY, OF 2H
CENT WAR HOUSING INSURANCE FUND DEBENTURES, SERIES H
PER-
The Federal Housing Commissioner, with the approval of the Secretary of
the Treasury, has issued the following notice of call for partial redemption and
offer to purchase with respect to 2y2 percent war housing insurance fund debentures, Series H:
"Pursuant to the authority conferred by the National Housing Act (48 Stat.
1246; U. S. C , title 12, sec. 1701 et seq.) as amended, public notice is hereby
given that 2H percent war housing insurance fund debentures. Series H, of the
denominations and serial numbers designated below, are hereby called for redemption, at par and accrued interest, on July 1, 1947, on which date interest
on such debentures shall cease:
percent war housing insurance fund debentures. Series H
Serial numbers
(All numbers inclusive)
Denomination
$50
---.40 to 507
100
319 to 1,849
500
105 to 608.
1,000..
---313 to 2,680
5,000
Ito
53 •
10,000_--.
L
^_
I t o 148
"The debentures first issued as determined by the serial numbers were selected
for redemption by the Commissioner, Federal Housing Administration, with the
approval of the Secretary of the Treasury.
"No transfers or denominational exchanges in debentures covered by the foregoing call will be made on the books maintained by the Treasury Department
on or after April 1, 1947. This does not affect the right of the holder of a debenture to sell and assign the debenture on or after April 1, 1947, and provision will
be made for the payment of final interest due on July 1, 1947, with the principal
thereof to the actual owner, as shown by the assignments thereon.
"The Commissioner of the Federal Housing Administration hereby offers to
purchase any debentures included in this call at any time from April 1, 1947, to
June 30, 1947, inclusive, at par and accrued interest, to date of purchase.
"Instructions for the presentation and surrender of debentures for redemption
on or after July 1, 1947, or for purchase prior to that date will be given by the
Secretary of the Treasury."
I I . TRANSACTIONS IN CALLED
DEBENTURES
1, The debentures included in the foregoing notice of call for partial redemption
on July 1, 1947, are hereby designated called 2 ^ percent war housing insurance
fund debentures. Series H, and are hereinafter referred to as called debentures.
2. Transfers and denominational exchanges in called debentures will terminate
at the close of business on March 31, 1947.
III. REDEMPTION
OR
PURCHASE
1. Holders of called debentures will be entitled to have such debentures redeemed and paid at par on July 1, 1Q47, with interest in full to that date, at the
rate of $12.50 per $1,000. Interest on called debentures wiU cease on July 1, 1947.
2. Holders of called debentures have the privilege of presenting such debentures
at any time from April 1 to June 30, 1947, inclusive, for purchase at par and accrued interest, at the rate of $0.069061 per $1,000 per day from January 1, 1947,
to. date of purchase.
REPORT OF THE SECRETARY OF THE TREASURY
179
IV. RULES AND REGULATIONS GOVERNING REDEMPTION AND PURCHASE
1. The United States Treasury Department is the agent of the Federal Housing
Commissioner for the redemption and purchase of called debentures. In accordance with regulations adopted by the Federal Housing Commissioner and approved
by the Secretary of the Treasury, the assignment, redemption, and purchase of
called debentures will be governed by the general regulations of the Treasury
Department with respect to United States bonds and notes, so far as applicable,
except as otherwise provided herein.
2. Called debentures presented for redemption on July 1, 1947, or for purchase
from April 1 to June 30, 1947, inclusive, must be assigned by the registered payee
or assignee thereof or by their duly constituted representatives in the form indicated in paragraph 3 of this section, and should thereafter be presented and surrendered to any Federal Reserve Bank or to the Division of Loans and Currency,
Treasury Department, Washington 25, D . C , accompanied by appropriate written
advice. (Use Form PD 2107.) The debentures must be delivered at the expense
and risk of the holders. (See paragraph 8 of this section.) In all cases checks in
payment of principal and final interest will be mailed to the address given in the
form of advice accompanying the debentures when surrendered. •
3. If the registered payee or an assignee holding under proper assignment from
the registered payee desires that payment be made to him, the debentures should
be assigned by such payee or assignee or by a duly constituted representative to
"The Federal Housing Commissioner for redemption" or to "The Federal Housing
Commissioner for purchase," according to whether the debentures are to be presented for redemption on July 1, 1947, or for purchase prior to that date. If it is
desired for any reason that payment be made to some other person without intermediate assignment the debentures should be assigned to "The Federal Housing
Commissioner for redemption (or purchase) for the account of —^
,"
inserting the name and address of the person to whom payment is to be made.
4. An assignment in blank or other assignment having similar effect will be
recognized, but in that event payment will be made to the person surrendering
the debenture for redemption or purchase since, under such an assignment, the
debenture becomes in effect payable to bearer. Assignments in blank or assignments having similar effect should be avoided, if possible, in order not to lose the
protection afforded by registration.
5. Final interest on any called debentures, whether purchased prior to or
redeemed on or after July 1, 1947, will be paid with the principal in accordance
with,the assignments on the debentures surrendered.
6. All assignments must be made on the debentures themselves unless otherwise directed by the Treasury Department. Detached assignments will be
recognized and accepted in any particular case in which the ,use of detached
assignments is specifically authorized by the Treasury Department. Any
assignment not made upon the debenture is considered a detached assignment.
7. A called debenture registered in the name of, or assigned to, a corporation,
will be paid to such corporation on or after July 1, 1947, upon an appropriate
assignment for that purpose executed on behalf of the corporation by a duly
authorized officer thereof. An assignment so executed and duly attested in
accordance with Treasury Department regulations will ordinarily be accepted
without proof of the officer's authority. In all cases coming under this provision
payment will be made only by check drawn to the order of the corporation.
Proof of the authority of the officer assigning on behalf of a corporation will be
required, in accordance with the general regulations of the Treasury Department,
in the case of assignments for purchase prior to July 1, 1947, and in case of assignments for redemption on or after July 1, 1947, for the account of any person
other than the corporation.
8. Debentures presented for redemption or purchase under this circular must
be delivered to a Federal Reserve Bank or to the Division of Loans and Currency,
Treasury Department, Washington 25, D. C , at the expense and risk of the
holder. Debentures bearing restricted assignments may be forwarded by registered mail, but debentures bearing unrestricted assignments should be forwarded
by registered mail insured or by express prepaid.
9. In order to facihtate the redemption of .called debentures on July 1, 1947,
any such debenture may be presented and surrendered in the manner herein
prescribed in advance of that date but not before June 1, 1947. Such early
presentation by holders whl insure prompt payment of principal and interest
when due.
764788—48—13
180
REPORT OF THE SECRETARY OF THE TREASURY
V. GENERAL PROVISIONS
1. Any further information which m a y be desired regarding t h e redemption
of called debentures under this circular m a y be obtained from a n y Federal Reserve
B a n k or from t h e Division of Loans a n d Currency, Treasury D e p a r t m e n t , Washington 25, D . C , where copies of t h e Treasury D e p a r t m e n t ' s regulations governing
assignments m a y be obtained.
2. As fiscal agents of t h e United States, Federal Reserve Banks are authorized
a n d requested t o perform a n y necessary acts under this circular. T h e Secretary
of t h e Treasury m a y a t a n y time or from time to time prescribe supplemental
a n d a m e n d a t o r y rules a n d regulations governing t h e m a t t e r s covered b y this
circular, which will be communicated p r o m p t l y t o t h e registered owners of called
debentures.
A. L. M . W I G G I N S ,
Acting Secretary of the Treasury.
MONETARY
DEVELOPMENTS
Exhibit 28
Report o f t h e National Advisory Council with respect to United S t a t e s participation
in t h e International Bank for Reconstruction a n d Development a n d in t h e
International M o n e t a r y F u n d to October 3 1 , 1946
T H E P R E S I D E N T ' S L E T T E R , J A N U A R Y 13, 1947,
THE C O N G R E S S
TRANSMITTING THE REPORT TO'
To the Congress of the United States:
I n accordance with section 4 (b) (5) of t h e B r e t t o n Woods Agreements Act,
there is t r a n s m i t t e d herewith a report b y t h e Natiorial Advisory Council on
I n t e r n a t i o n a l Monetary, a n d Financial Problems with respect t o t h e participation
of t h e United States in t h e Internaoional B a n k for Reconstruction a n d Developm e n t a n d in t h e International M o n e t a r y F u n d t o October 31, 1946.
HARRY S. TRUMAN.
T H E W'HITE H O U S E , J a n u a r y IS,
1947.
R E P O R T OF A C T I V I T I E S O F T H E N A T I O N A L ADVISORY C O U N C I L ON I N T E R N A T I O N A L
M O N E T A R Y AND F I N A N C I A L P R O B L E M S TO O C T O B E R 31, 1946
I. FUNCTIONS AND P O W E R S O F T H E COUNCIL
T h e National Advisory Council on International M o n e t a r y a n d Financial
Problems was established b y t h e Congress in t h e Bretton Woods Agreements
Act (59 Stat. 512; 22 U. S. C, 286b), approved by t h e President on July 31, 1945.
T h e s t a t u t e directs t h e Council to advise a n d consult with t h e representatives of
t h e United States on t h e B a n k a n d t h e F u n d a n d to coordinate their policies a n d
those of t h e E x p o r t - I m p o r t Bank of Washington a n d all other agencies of t h e
Government " t o t h e extent t h a t t h e y m a k e or participate in t h e making of foreign
loans, or engage in foreign financial, exchange, or,monetary t r a n s a c t i o n s . "
II. ORGANIZATION OF T H E COUNCIL
T h e organization a n d procedure followed in t h e Council's work were outlined
in t h e report t r a n s m i t t e d t o t h e Congress on M a r c h 8, 1946 (H. Doc. N o . 497,
79th Cong., 2d sess.). T h e Council h a d established a Technical Committee on
t h e B a n k a n d t h e F u n d , which was charged with t h e responsibihty for t h e planning a n d t h e consultation with representatives of foreign governments, preparat o r y t o t h e inaugural meetings of t h e Bank a n d t h e F u n d . This committee has
now completed its tasks, a n d technical m a t t e r s relating t o these institutions aire
considered by t h e Council Staff Committee. I n other respects t h e procedures of
t h e Council remain substantially unchanged.
REPORT OF THE SECRETARY OF THE TREASURY
181
A. Memhers of the Council
The present members of the Council, according to law, are the following:
The Secretary of the Treasury, John W. Snyder, Chairman.
The Secretary of State, James F. Byrnes.
The Secretary of Commerce, W. Averell Harririian.
The Chairman of the Board of Governors of the Federal Reserve System,
Marriner S. Eccles.
The Chairman of the Board of Directors of the Export-Import Bank, William
McChesney Martin, Jr.
Two changes in the membership of the Council have occurred since the previous
report. On June 25, 1946, John W. Snyder succeeded Fred M. Vinson as Secretary of the Treasury, and on October 7, 1946, W. Averell Harriirian succeeded
Henry A. Wallace as Secretary of Commerce.
By agreement the following serve as alternates:
Andrew N. Overby, special assistant to the Secretary of the Treasury.
William L, Clayton, Under Secretary of State for Economic Affairs.
Arthur Paul, assistant to the Secretary of Commerce.
J. Burke Knapp, Assistant Director of Research and Statistics, Board of
Governors of the Federal Reserve System.
Herbert E, Gaston, Vice Chairman of the Board of Directors of the ExportImport Bank.
Harold Glasser, Director of Monetary Research in the Treasury Department
is the Secretary of the Council.
B. United States representatives on the Bank and the Fund
The Council, under the Bretton Woods Agreements, Act, is assigned the responsibility of recommending to the President general policy directives for the guidance
of the representatives of the United States on the Fund and the Bank, after consultation with these representatives. The Council has the further duty to advise
and consult with the President and with the tlnited States representatives on the
Bank and Fund, regarding major problems arising in the administration of these
organizations. The United States representatives have regularly met with the
Council, and there has been a full exchange of views on matters concerning these
institutions.
The President nominated Fred M. Vinson, then Secretary of the Treasury, as
the first United States Governor of the Bank and Fund, and William L. Clayton,
then Assistant Secretary of State, as Alternate Governor; Emilio G. Collado, then
deputy on financial affairs. State Department, was nominated as the United
States Executive Director of the Bank; and Harry D, White, then Assistant
Secretary of the Treasury, was nominated as the Executive Director of the Fund
for the United States. The Senate confirmed these nominations on February 6,
1946.
John W. Snyder was nominated to succeed Fred M,. Vinson as Governor of the
Bank and the Fund. This appointment was confirmed by the Senate on July 10,
1946. On the same date the Senate confirmed the appointments of John S.
Hooker as United States Alternate Executive Director of the Bank and George F.
Luthringer as United States Alternate Executive Director of the Fund.
III. PAYMENTS M A D E BY THE UNITED STATES TO THE FUND AND THE BANK
In accordance with the articles of agreement of the Fund, each governmeht
signing the agreement paid one one-hundredth of 1 percent of its total subscrip!tion to the Fund in gold or United States dollars. These payments were held iri
a special deposit account in the Treasury until the inaugural meeting of the Board
of Governors ofthe Fund, and on March 29, 1946, they were transferred to the
Fund. The Fund has received a total of $737,250 from these payments by members. The United States paid $275,000 to the Fund under this clause.
The balance of the subscription of the United States to the Fund will be paid
in accordance with article III, section 3, and article XX, section 4 (c), of the
agreement, which provide for full payment on or before the date when the Fund
begins exchange transactions. Funds for this purpose have already been provided by section 7 of the Bretton Woods Agreements Act, In accordance with
section 7 (c). of the Bretton Woods Agreements Act, the United States intends to
exercise its option under article III, section 5, of the Fund agreement, to deliver
special nonnegotiable, noninterest-bearing notes of the United States payable on.
desmand in exchange for dollars not needed -by the Fund for its operations.
182
.
REPORT OF THE SECRETARY OF THE TREASURY
The articles of agreement of the Bank (art. XI, sec, 2 (d)) require the payment
of one one-hundredth of 1 percent of the capital subscription of each member
country at the time of signature of the articles. These payments were treated
in the same way as the initial payments to the Fund noted above. Accordingly,
the United States paid the Bank $317,500 under this clause. Total payments by
all member countries aggregated $767,000.
Under article II, sections 7 and 8, the balance of 2 percent of the capital subscription became payable within 60 days after the Bank began operations—i. e.,
on or before August 24, 1946. The United States accordingly paid an additional
$63,182,500 to the Bank on June 28, 1946. The Bank, in accordance with article
II, sections 5, 7, and 8, called for an additional 3 percent ($95,250,000) as of June
25, 1946, payable on or before November 2.5, 1946. This call was likewise paid
on June 28, 1946. The total paid to the Bank by the United States as of October
31, 1946, amounted, therefore, to $158,750,000.
As of September 25, 1946, the Bank called an additional 5 percent of the
capital subscription of all members payable by November 25, 1946, and it has
also given notice that it intends to make two additional calls of 5 percent each,
payable by February 25, 1947, and May 26, 1947, respectively. The United
States payment on each of these calls will be $158,750,000, so that a total of
$635,000,000 will be paidjn on capital subscription by the United States, The
remainder of the United States subscription to the capital stock of the Bank wih
not be called unless funds are needed to make payments to investors to meet
obligations of the Bank.
In accordance with the Bretton Woods Agreements Act, the United States will
exercise its option to deliver nonnegotiable, noninterest-bearing demand notes in
exchange for dollars not needed in the Bank's operations, as provided in article
V, section 12, of the Bank agreement.
IV. ACTIONS BY THE COUNCIL RELATING TO THE BANK AND THE FUND
The Bretton Woods Agreements Act, section 4 (b) (4), provides that—
Whenever, imder the Articles of Agreement of the Fund or the Articles of Agreement of the Bank, the
approval, consent, or agreement of the United States is requii-ed before an act may be done by the respective
institutions, the decision as to whether such approval, consent, or agreement shall be given or refused shall ,
(to the extent such decision is not prohibited by sec. 5 of this act) be made by the Council, under the general
direction of the President., No governor, executive director, or alternate representing the United States
shall vote in favor of any waiver of conditions under article V, section 4, or In favor of any declaration of
the United States dollar as a scarce currency under article VII, section 3, of the Articles of Agreement of
the Fund, without prior approval of the Council.
In the present formative period in the life of the Bank and Fund, no occasions
have as yet arisen for formal action under this authority. The Council has
contributed to the formulation of the policies of these organizations through its
consultation with and advice to the United States Executive Directors and
through its participation in the meetings of the respective Boards of Governors,
The Bank and Fund have been informed that all communications between this
Government and the international .organizations are to be sent directly to and
from the Chairman of the National Advisory Council.
On September 12, 1946, the Fund requested the Chairman of the Council to
communicate the par value of the dollar for the purposes of the Fund under
article XX, se^ction 4, of the agreement. The Secretary of the Treasury, as
Chairman, accordingly communicated the par value of the dollar as 15^^i grains
of gold, nine-tenths fine, as proclaimed by the President of the United States on
January 31, 1934.
Soon after the Bank opened for, business on June 25, 1946, the United States
Executive Director consulted the Council as to whether article IV, section 2 (a)
and (b), of the articles of agreement required the Bank to obtain United States
approval in order to lend or invest dollars derived from the 2 percent payable in
gold or dollars by all members on their capital subscription. The Council and
the United States Executive Director were in agreement that such approval is
not required under these provisions. The Council also advised the United States
Executive Director that it saw no objection to the investment of these funds in
short-term obligations of the United States, if the Bank found that it had adequate
authority under its articles of agreement to invest these funds in such securities.
Subsequently the Bank invested $127,500,000 in short-term United States Government securities.
Among the other subjects pf discussion between the Council and the United
States Executive Director of the Bank has been the scope of the lending operations
REPORT OF THE SECRETARY OF THE TREASURY
183
of the International Bank. The Council has requested that- certain applicants
for Export-Import Bank loans be directed to the International Bank, and these
applications are now being considered by it.
V. COUNCIL PARTICIPATION IN THE MEETINGS OF THE BOARDS OF GOVERNORS OF
THE BANK AND FUND
The articles of agreement of the Bank and of the Fund entered into force on
December 27, 1945, with their signature by the required number of countries.
By December 31, 1945, 33 countries had joined both the Bank and the Fund,
while one additional country, Colombia, had joined the Fund but not the Bank.
Soon thereafter the member countries appointed their respective Governors.
Since the powers of the Bank and the Fund are vested in their respective Boards
of Governors, the next essential step toward completing the initial organization
was to call a meeting of these boards. A large amount of preliminary work was
necessary before this step could be taken. While the Government of the United
States was empowered to call the first meeting under the articles, other governments had to be consulted on procedure. The prehminary work and consultation
were entrusted to the Technical Committee on the Bank and the Fund of the
National Advisory Council, acting under the supervision of the Council.
In accordance with the articles of agreement of the Bank and the Fund, the
President of the United States called the inaugural meeting o f t h e Boards of
Governors. The meetings were held at Savannah, Ga,, from March 8 to March
18, 1946. The Governors or Alternate Governors of all nations which had become
members of the Bank and Fund were present. The United States Governor was
elected Chairman of the Board of both organizations. Secretary Vinson was
assisted in the work of the inaugural meeting by the Alternate Governor, the
Executive Directors, members of the Council and their staffs, and a represeritative
of the Securities and Exchange Commission. Council agencies also provided the
secretariat for the meeting.
The inaugural meetings were concerned largely with the problems of organizing
the international bodies. The Boards of Governors adopted bylaws, estabhshed
procedures, appointed committees, and delegated appropriate powers to the
Executive Directors, whose sessions began shortly after the close of the inaugural meetings of the Governors. It was decided to hold the first annual
meetings of the Governors in Washington in- September 1946, at which time appropriate actions could be taken on the matters raised but not settled at Savannah.
The Bank and the Fund have published reports of the proceedings of the inaugural
meetings.
The first annual meetings of the Board of Governors of the Bank and the
Board of Governors of the Fund were held in Washington from September 27 to
October 3, 1946, inclusive. The United States Governor, John W. Snyder, as
Chairman of both Boards of Governors, presided at the opening and closing joint
sessions of the Bank and the Fund. He also presided at some of the separate
meetings of the Boards of Governors of each institution. The Alternate Governor,
William L. Clayton, Under Secretary of State for Economic Affairs, as at Savannah, spoke for the IJnited States at meetings of the Boards of Governors. Four
temporary Alternate Governors wefe appointed to represent the United States at
various committee meetings. They were:
Marriner S. Eccles, Chairman of the Board of Governors of the Federal
Reserve System.
William McChesney Martin, Jr., Chairman of the Board of Directors of the
Export-Import Bank,
Alfred Schindler, Under Secretary of Commerce.
James J. Caffrey, Chairman of the Securities and Exchange Commission.
The Governors and Alternate Governors were assisted by the United States
Executive Directors and their alternates and by the technical staffs of the agencies
represented in the National Advisory Council and of the Securities and Exchange
Commission. The chairmen and ranking minority members of the Senate and
House Committees on Banking and Currency were invited to attend both meetings as advisers and rendered valuable assistance and counsel.
The principal matters on which action was taken at these meetings were the
admission of new members, changes in quotas and subscriptions, and the adoption
of rules and regulations governing the conduct of the Bank and the Fund.
184
REPORT OF THE SECRETARY OF THE TREASURY
VI. PRINCIPAL ACTIONS OF THE BANK AND FUND
The Executive Direcl^ors fixed June 25, 1946, as the date upon which the Bank
would formally begin operations and called for the balance of the initial 2 percent
of the capital subscription, .Mr. Eugene Meyer (United States) was elected
President and took office on June 18, 1946,
The Executive Directors of the Fund at their first meeting on Maj^ 6, 1946,
elected Mr, Camille Gutt (Belgium) as Managing Director. On September 12,
1946, the Fund announced that "it will shortly be in a position to begin exchange
transactions" (art. XX, sec, 4) and requested the members to communicate the
par values of their currencies. The Fund may begin exchange transactions after
the exchange parities have been agreed with the Fund by members having an
aggregate of at least 65 percent of the quotas established at Bretton Woods.
A. Admission of members
The United States has favored the early admission to membership in the Bank
and Fund of all peace-loving nations. The United States Government supported
the extension until December 31, 1946, of the period of time during which countries represented at Bretton Woods might accept membership' in these institutions
on the same terms as the original signatories. During the Savannah meeting, or
shortly thereafter, five members joined both the Fund and the Bank, viz, Cuba,
Denmark, Nicaragua, Panama, and El Salvador. The extension still applies to
Australia, Haiti, Liberia, New Zealand, the Union of Soviet Socialist Republics
and Venezuela, Colombia joined the Fund but not the Bank and is also eligible
under this extension to join the Bank.
The United States has also supported the admission of new members, and at the
first annual meeting of the Boards of Governors in Washington applications were
accepted from Italy, Lebanon, Syria, and Turkey. Quotas in the Fund for the
new members were fixed at this time (Italy, 180 million dollars; Lebanon, 4.5
million dollars; Syria, 6,5 million dollars; and Turkey, 43 million dollars). Subscriptions to the capital stock of the Bank are in the same amount as the Fund
quota fbr each country.
B. Revisions of quotas and subscriptions
The Board of Governors of the Fund, with the cpriCfurrence of the United States,
voted during the Washington meeting, to increase the quota of France in they Fund
from 450 million dollars to 525 million dollars, and of Paraguay from 2 million
dollars t o . 3.5 million dollars, conditional upon application for proportionate
increases in their subscriptions to the Bank, The Board of Governors of the Bank
approved increases in the Bank subscription of France to 525 million dollars and
of Paraguay to 1,4 million dollars,
C. Functions and remuneration of the executive directors
The United Sta,tes has favored a broad delegation of powers to the Boards of
Executive Directors of both the Bank and the Fund and has supported the principle that the offices of Executive Directors (and their alternates) should be fulltime positions. It is provided in the bylaws of the Bank and of the Fund that—
It shall be the duty of an Executive Director and his alternate to devote all the time and attention to the
business of the Bank [Fund] that its Interests requu-e, and, between them, to be continuously available at
ttie principal office of the Bank [Fund].
The Boards of Governors of the Bank and of the Fund decided to fix the remuneration of Executive Directors (and their alternates) on the basis of full-time, service, but where a director or alternate serves only on a part-time basis his remuneration is to be prorated according to the proportion of his time devoted to the
institution:
The following resolution concerning national taxes on salaries and allowances
was passed at the Savannah meeting by the Boards of Governors of the Bank and
the Fund:
Appropriate measures for the elimination or equalization of the burden of national taxes upon salaries and
allowances paid by the International Bank for Eeconstruction and Development [International Monetary
Fund] are Indispensable to the achievement of equity among its members and equality among its personnel—
Therefore—
The Board of Governors of the International Bank for Reconstruction and Development [Internationai
Monetary Fund] recommends to the members of the Bank [Fund] that necessary action be taken by them
to exempt from national taxation salaries and allowances paid out of the budget of the Bank [Fund] to the
President [Managing Dii'ector], the Executive Directors and their alternates and to the stafi of the Bank
[Fund].
REPORT OF THE SECRETARY OF THE TREASURY
185
When the Congress is again in session, the Council will give consideration to the
problem raised by this resolution insofar as the United States is concerned, in the
light of the similar problem which has arisen in the case of American citizens
employed by the United Nations and other international bodies of which the
United States is a member.
D. Other actions of the Bank and Fund
The articles of agreement of the Bank and of the Fund provide that their
principal offices are to be located in the country with the largest subscription and
quota, respectively. Since these institutions are intergovernmental bodies, the
United States delegation favored the location of their principal offices in Washington. This view prevailed at the Savannah Conference.
The United States representatives have shared a substantial identity of view
with the representatives of the other members of the Bank and the Fund on many
other matters which have been considered.
At the first annual meeting the Governors of the Fund also adopted a resolution
on silver introduced by the Governor for Mexico. The conclusion of this resolution is as follows:
The Fund shall gather whatever material is available and obtainable on the monetary uses of silver; the
real function of sliver coins; risks and uncertainties of Its monetary uses; possibilities of cooperation in the
use of silver for monetary purposes, etc. In general, the Fund shall gather material, statistical or otherwise,
which could be useful in facilitating discussions on the subject in an international conference among
interested member countries.
The Boards of Governors decided to hold their next annual meetings at London
in September 1947. Officers were elected to hold office until the end of the second
annual meeting. The Governor for the United Kingdom was elected Chairman,
and the Governors for China, France, India, and the United States were elected
Vice Chairmen for the ensuing year.
VII. INTERPRETATIONS OF THE ARTICLES OF AGREEMENT OF THE BANK AND FUND
To carry out the.requirement of section 12 of the Bretton Woods Agreements
Act, the United States Governor of the Bank at Savannah requested an interpretation "as to the authority of the Bank tq make or guarantee loans for programs
of economic reconstruction and the reconstruction of monetary systems, including
long-term stabilization loans," The Governors of the Bank, pursuant to article
IX (a), of the agreement, invited the Executive Directors to interpret the articles
in this respect.
The Executive Directors'of the Bank approved a report by their Committee
on Interpretations, which concluded that—
Under the articles of agreement, the Bank has authority to make or guarantee loans for programs of
economic reconstruction and the reconstruction of monetary systems, including long-term stabilization loans.
In accordance with the requirement of section 13 (a) of the Bretton Woods
Agreements Act, the United States Governor presented a request at the inaugural
meeting for an interpretation of the Fund articles.of agreement—
as to whether the authority of the Fund to use Its resources extends beyond current monetary stabilization
• operations to afford'tem porary assistance to members In connection with seasonal, cyclical, and emergency
fluctuations in the balance of payments of any member for current transactions, and whether the Fund has
authority to use its resom'ces to provide facilities for relief, reconstruction, or armaments, or to meet a large
or sustained outflow of capital on the part of any member.
Pursuant to article XVIII (a). of the agreement, the Board of Governors of -the
Fund referred the matter to the Executive Directors,
The Executive Directors of the Fund on September 26, 1946, in accdrdance
with article XVIII of the Fund agreement, made the following interpretation:
The Executive Directors of the Internationai Monetary Fund Interpret the articles of agi-eement to mean
that authorit^'^ to use the resources of the Fund is limited to use in accordance with Its purposes to give
temporary assistance in financing balance of payments deficits on current account for monet'ary stabilization
operations.
These interpretations appear to be fully responsive to the directives of Congress, so that, in the opinion of the National Advisory Council, action for amending the articles of agreement does not appear necessary.
The Governor of the Fund for the United Kingdom also made a request for an
interpretation, in response to which the Executive Board made the following
interpretation on September 26, 1946:
186.
REPORT OF THE SECRETARY OF THE TREASURY
The Government of the United Kingdom has stated its intention to maintain full employment and has
requested an interpretation of the articles of agreement as to whether steps necessary to protect a member
from unemployment of a chronic or persistent character, arising from pressure on Its balance of payments,
shall be measures necessary to correct a fundamental disequilibrium.
The Executive Directors interpret the articles of agreement to mean that steps which are necessary to
protect a member from unemployment of a chronic or persistent character, arising from pressm'e on its
balance of payments, are among the measures necessary to correct a fundamental disequilibrium; and that
in each Instance In which a member proposes a change In the par value of its currency to correct a fundamental disequilibrium the Fund will be required to determine, In the light of all relevant circumstances,
whether in its opinion the proposed change is necessary to correct the fundamental disequilibrium.
VIII. .CONCLUSION
T h e B a n k a n d t h e F u n d h a v e now concluded t h e preliminary phase of their
work. T h e necessary machinery has been set u p . T h e recruitment of staff on
a broad international basis is progressing satisfactorily. The Executive Directors
have chosen able men as President of t h e Bank a n d Managing Director of the
F u n d . T h e Bank has called for p a y m e n t of t h e m e m b e r subscriptions to its
paid-in capital a n d should soon be ready t o float securities a n d m a k e loans.. T h e
F u n d has announced t h a t it will shortly be in a position to begin exchange operations a n d has asked t h e members to communicate t h e p a r values of their currencies. I t is expected t h a t t h e F u n d will reach agreement with most members on
the initial p a r values of their currencies. I n view of t h e difficult problems which
t h e new organizations have h a d t o face, t h e y h a v e m a d e satisfactory progress in
carrying out t h e plans formulated a t Bretton Wood^.
F r o m t h e point of view of t h e United States, t h e . a c t i o n s t a k e n a n d policies
a d o p t e d by t h e B a n k a n d F u n d are, in t h e opinion of t h e N a t i o n a L Advisory
Council, satisfactory. On most issues there has been substantial .unanimity on
t h e p a r t of t h e representatives of t h e m e m b e r countries. Differences of view
have been reconciled by agreement after full discussion in t h e Boards df Executive
Directors. T h e United States representatives on t h e B a n k a n d F u n d Boards
have k e p t t h e Council fully informed of all i m p o r t a n t m a t t e r s a n d h a v e ably
represented t h e American point of view in t h e international institutions. The
good working relations between these representatives a n d t h e Council have
assured effective implementation of t h e policies established by t h e Congress in
t h e Bretton Woods Agreements Act. ^
J O H N W . SNYDER,
Secretary of the Treasury, Chairman of the National Advisory
Council on International Monetary and Financial Problems.
JAMES
F.-BYRNES,
W.
A.
HARRIMAN,
M.
S.
ECCLES,
Secretary of State.
Secretary of Commerce.
Chairman of the Board of Governors
of the Federal Reserve System.
WM. M C C . MARTIN, JR.,
Chairman of the Board of Directors of the
Export-Import Bank of Washington.
Exhibit 29
Report of the National Advisory Council with respect to United States participation
in the International Bank for Reconstruction and Development and in the
International M o n e t a r y F u n d to M a r c h 3 1 , 1947
T H E P R E S I D E N T ' S , L E T T E R , J U N E 26, 1947, T R A N S M I T T I N G T H E R E P O R T TO T H E
CONGRESS
To the Congress of the United States:
On M a r c h 8, 1946, I sent t o t h e Congress.a report of t h e National Advisory
Council on International M o n e t a r y and Financial Problems describing t h e operations of t h e Council during t h e preceding 6 m o n t h s in coordinating t h e foreign
financial activities of t h e Government. On J a n u a r y 13, 1947, I sent t o t h e Con-
REPORT OF THE SECRETARY OF THE TREASURY
187
gress a National Advisory Council Report on Participation of the United States
in the International Monetary Fund and the International Bank for Reconstruction and Development to October 3J, 1946.
I have now received from the National Advisory Council a report covering its
operations from February 28, 1946, to March 31, 1947, and describing, in accordance with section 4 (b) (5) of the Bretton Woods Agreements Act, the participation of the United States in the International Monetary Fund and the International Bank from October 31, 1946, to March.31, 1947.
The report is attached hereto.
HARRY S. TRUMAN.
T H E WHITE HOUSE, June 26,
1947.
REPORT OF ACTIVITIES OF THE NATIONAL ADVISORY COUNCIL ON INTERNATIONAL
MONETARY AND FINANCIAL PROBLEMS TO MARCH 31, 1947
I. ORGANIZATION OF THE COUNCIL
Statutory basis
The National Advisory Council on Internatiorfal Monetary and Financial
Problems was estabhshed by the Congress in the Bretton Woods Agreements
Act (59 Stat. 512, 22 U, S, C. 286b), which jwas approved by the President on
July 31, 1945, The statute directs the Council to coordinate the policies and
operations of the representatives 'of the United States bn the International Monetary Fund and the International Bank for-Reconstruc tion and Development, the
Export-Import Bank of Washington and all other agencies of the Government
^'to the extent that they make or participate in the making of foreign loaris or
engage in foreign financial, exchange, or inonetary transactions." The Council
is also directed to advise and consult with the President and the United States
representatives on the Fund and the Bank on major problems arising in the administration of the Fund and the Bank; and to recommend to the President
general policy directives for the guidance of the representatives of the United
States on the Fund and Bank. Portions of the statute stating the duties .and
powers of the Council are presented in appendix A.
Reports
Since its first meeting on August 21, 1945, the Council has submitted three
formal reports to the President and to the Congress as follows:
Statement of the Foreign Loan Policy of H:he Uriited States Government
by the National Advisory Council on International Monetary and Financial
Problems, forwarded to the President, and transmitted by the President to
the Congress on March 1, 1946 (H. Doc. No. 489, 79th Cong., 2d sess.;
subsequently included as appendix B to H. Doc. No. 497, 79th Cong., 2d
sess.).
Report of the National Advisory Council on International Monetary and
Financial Problems for the Period of the Last Six Months, forwarded to the
President, and transmitted by the President to the Congress on March 8,
1946 (H. Doc. No. 497, 79th Cong., 2d sess,).
Report by the National Advisory Council on International Monetary and
Financial Problems with respect to the Participation of the United States
in the International Bank for Reconstruction and Development and in the
International Monetary Fund to October 31, 1946, forwarded to the President, and transmitted by the President to the Congress on January 13, 1947
(H. Doc. No. 53, 80th Cong,, 1st sess.).
The present report covers the activities of the Counch from February 28, 1946,
to March 31, 1947, and includes a survey of foreign financial assistance extended
by the United States Government since the end of the war. Ii also includes (see
pt. I l l below) the second report by the Council on participation of the United
States in the International Bank for Reconstruction and Development and in the
International Monetary Fund, covering the period from October 31, 1946, to
March 31, 1947.
188
REPORT OF THE SECRETARY OF THE TREASURY
Membership
The present members of the Council, according to law, are the following:
The Secretary of the Treasury, John W. Snyder, Chairman.
; ,The Secretary of State, George C. Marshall.
^
jThe Secretary of Commerce, W. Averell Harriman,
The Chairman of the Board of Governors of the Federal Reserve System,
Marriner S, Eccles,
'^' The Chairman of the Board of Directors of the Export-Import Bank, William
p. • McChesney Martin, Jr,
.
•By agreement, the following serve as alternates:
t
Andrew N. Overby, Special Assistant to the Secretary of the Treasury,
William L. Clayton, Under Secretary of State for Economic Affairs.
\^ Thomas C. Blaisdell, Jr., Assistant to the Secretary of Commerce.
i^ * ,J. Burke Knapp, Assistant Director of Research and Statistics, Board of
I Bj Governors of the Federal Reserve System.
ft I^Herbert E. Gaston, Vice Chairman of the Board of Directors of the Exportl^i Import Bank. ,
P Harold Glasser, Director of Monetary Research in the Treasury Department, is
the Secretary of the Council,
The United States Executive Directors on the International Monetary Fund
and the International Bank for Reconstruction and Development regularly attend
the meetings of the Council,
Procedure
The Council ordinarily meets each week and holds such special meetings as are
required. Since February .1946, the Council has held 53 meetings, including
several joint meetings with the President's Committee for Financing Foreign
Trade. Members of the Council also formed a special committee which was
charged with carrying through the financial negotiations with representatives of
the Provisional Government of France in the spring of 1946,
The Council has made use of the services of the existing personnel of its five
member agencies. As described in previous reports, its Staff Committee, consisting of technical representatives of member agencies and a representative of the
Securities and Exchange Commission, collects and analyzes information and pre-.
pares reports and recommendations for the Council, Secretariat functions are
performed by personnel of the Treasury Department, Through this procedure,
the Council has not only operated economically but has also niaintained the close
interagency liaison essential for successful performance of its coordinating function.
In accordance with its statutory responsibility, the Council has coordinated a
wide variety of foreign financial transactions by agencies of this Government,
including foreign loans, financial settlement of war accounts, and credits to foreign
governments or their nationals for purchase of United States Government surplus
property. Its objective has been to achieve a consistent United States foreign
financial policy. Problems which before the institution of the Council had
been dealt with by individual agencies and, in many cases, with only incidental
coordination, have been made the subject of joint discussion and joint decision.
The Council considers various criteria for foreign loans, among which are the
purpose of the loan, the need for the loan, the borrower's ability to repay, the
allocation of available loan funds among applicant countries, the alternative
sources of loan funds, and the possible effects of the use of loan proceeds on the
United States domestic econoniy. On the basis of these criteria the Council
approves or disapproves consideration by the lending agency of a proposed loan
or credit. Thus, through an over-all analysis, the Council offers its best judgment to a lending agency with regard to particular loan -applications.
Similarly, through continuous consultation with United States representatives
on the International Fund and Bank, and through exercise of the special powers
granted to the United States in the Bank's Articles of Agreement over the Bank's
operations involving United States dollars, the Council has assured coordination
between the operations of these international institutions and the foreign financial
operations of the United States Government.
REPORT OF THE SECRETARY OF THE TREASURY
II.
ACTIVITIES
OF T H E COUNCIL
FROM
FEBRUARY
28,
1946, TO
189
MARCH 31, 1947
(OTHER THAN THOSE RELATING TO THE INTERNATIONAL MONETARY FUND AND
THE INTERNATIONAL BANK)
The Anglo-American Financial Agreement
On July 15, 1946, President Truman signed the joint congressional resolution
which implemented the Financial Agreement of December. 6, 1945, with the United
Kingdom, and the agreement became effective, immediately. The resolution
implementing the agreement authorized the Secretary of the Treasury, in consultation with the National Advisory Council, to carry out the agreement of
December 6, 1945,
The initial drawing under the line of credit provided for by the Financial Agreement was made by the British Government on July 18, 1946, Six subsequent
withdrawals brought the total drawings to $1,300,000,000 as of April 1, 1947,
To implement the joint congressional resolution which provided that "the
Secretary of the Treasury, in corisultation with the National Advisory Council
on International Monetary and Financial Problems, is hereby authorized to carry
out the agreement dated December 6, 1945, between the United States and the
United Kingdom," the Council directed its Staff Committee t o coordinate the
study of problems arising under the agreement.
On September 17, 1946, the United Kingdom signed an agreement with Argentina, providing for the settlement of sterling balances accumulated by Argentina
during the war. Since implementation of one clause of this agreement involved
a potential violation of the principle, embodied in the Anglo-American Financial
Agreement, that sterling balances should not be used as a device for discriminatory
expansion of British exports, the National Advisory Council recominended that
. the Secretary of the Treasury write to the British Chancellor of the Exchequer,
with respect to this clause of the Argentine agreement. There followed an exchange of letters between the Secretary and the Chancellor, which was made
public on February 5, 1947. Chancellor Dalton gave assurances that the clause
objected to would not be written into any subsequent agreement for the settlement of sterling balances held by other countries. Subsequently, Argentina and
the United Kingdom have agreed to liquidate Argentina's total sterling balances
through use of these balances to purchase British-owned railways in Argentina,
Such liquidation is consistent with the financial agreement.
The United Kingdom has also negotiated a series of agreements with other
"Countries to carry out the obligations under the Anglo-American Financial Agreement which become'effective July 15, 1947. In December 1946, the United
Kingdom signed an agreement with Canada, under which sterling was made
freely transferable between Canadian, American, and Argentine accounts, and
Canada agreed to accept sterling in payment of exports from a large number of
countries. In February 1947, the United Kingdom signed three supplementary
agreements amending the monetary agreements with Belgium, the Netherlands,
and Portugal, making sterling balances held by these countries immediately
avahable for current payments in ariy currency area,
Export-Import Bank Credits
From the beginning of its operations on August 21, 1945, through March 31,
1947, the Council approved (or referred) for consideration by the Export-Import
Bank approximately $2,000,000,000 of credits (excluding $600,000,000 earmarked
for China and Italy) which were subsequently authoTized by the Board of Direc^
tors of the Export-Import Bank, Several credits, also available for postwar use,
were authorized or negotiated by the Bank, some between July 1, 1945, and the
beginning date of Council operations and some, whichwere associated.with earlier
Bank commitments, after the beginning of Council operations. The following
table shows the distribution of credits by country and object of financing:
190
REPORT OF THE SECRETARY OF THE TREASURY
Net credits authorized hy the Export-Import Bank,^ July 1,1945, to Mar. 31, 1947
[In millions of dollars]
Object of credit
Area a n d country
Lend-lease
Reconrequi~ struction
sitions
Europe:
Austria
Belgium
Czechoslovakia
Denmark
Finland
___
France
Greece
_ _
Hungary
Italy
Netherlands
.
Norway
Poland
U n a l l o t t e d cotton credits .
Total, Europe
Latin America:
Argentina..
Bolivia
.-._- .
Brazfl
...'.
Chile
Colombia
Ecuador
___
Mexico
Peru...
-_- -_Venezuela
_
550.0
50.0
Other
45.0
20.0
62. 5
650. 0
25.0
20.0
4 2.0
7.0
6 10.0
7.0
25.0
45.0
fl 201.1
50.0
40. 0
4L0
655.0
1,093.6
•
__
Total, Latin America...
100. 0
17.8
117.4
33. 0
66.8
IOO. 0
25.0
28.1
3.0
53.1
33.0
222.9
10.7
655.0
1, 230. 4
1, 866. 4
117. 4 '
3.0
_
0.8
100.0
22.0
20.0
79.5
1, 200. 0
25.0
7.0
30.0
251.1
50.0
40.0
41.0
.2
3.0
53.8
47.4
3.5
1.8
7.0
.1
,6
25.0
28.1
136.8
Total
0.2
3.0
53.8
47.4
3,5
1.8
7.0
.1
,6
33.8
100.0
T o t a l , Asia a n d A f r i c a . .
T o t a l , all areas
Cotton
purchases 2
3 0.8
55.0
Asia a n d Africa:
China
.
Netherlands Indies
_ _
Saudi Arabia.
Turkey.._
'.
E t h i o p i a ._ • .
Miscellaneous
Development
financing
181. 2
10.7
133. 0
17.8
2, 217. 4
1 Cancellations and expirations deducted. Numerous small exporter-importer loans extended by the
Bank, July 1, 1945, through Mar, 31, 1947, are excluded.
2 Credits extended by the Export-Import Bank under general approval of the Councfl.
3 Revolving credit,
* For financing tobacco purchases,
5 For financing food purchases.
6 Excludes $49,000,000 participation by private banks through Mar. 31, 1947,
In March 1946 the Council approved consideration by the Bank of the extension
to Chinese Government agencies and private enterprises of credits aggregating
$500,000,000 for the purchas'e in the United States of materials, equipment, and
services to assist in the rehabilitation and development of the Chinese economy.
The Bank earmarked this amount for the extension of credits for specific projects
submitted to the Bank and approved by it prior to June 30, 1947. . As of March
31, 1947, no credits had been approved.
,
REPORT OF THE SECRETARY OF THE TREASURY
191
In January T947Tthe Council approved^consideration'^bylthe Bank of credits
to Italy-totahng not more than $100,000,000. The Bank has earmarked this
amount for the extension during 1947 of credits for the purpose of financing
imports from the United States and, thereby, assisting specific parts of Italian
industry in the restoration and expansion of export markets. Stable conditions
in Italy and that country's ability to provide for other essential imports are prerequisites to the extension of credits under the agreement. As of March 31,
1947, no credits had been approved.
Several additional loan applications, which the Council approved for consideration, are under study by the Bank. As of March 31, 1947, the unutilized
lending capacity of the Bank, after deduction of the earmarked amounts for
China and Italy, was approximately $320,000,000.
The Philippine loan
During May 1946 the President-elect of the new. Philippine Republic conferred
with President Truman, congressional leaders, and various Government officials
concerning the financial situation of that country and the possibilities of obtaining
sizable loans from the United States for budgetary and trade purposes.
On the basis of available information the Council during July reached the
conclusion that a loan of not more than $75,000,000 would suffice to carry the
Philippine Government through its financial difficulties during the current fiscal
year. The Counch agreed that such a loan, because of its special nature, should
be presented to the Congress for direct authorization; and that a Joint PhilippineAmerican Finance Commission should make a thorough study of the entire
financial and budgetary situation of the Philippine Government.
Congress, by Public Law 656 (79th Cong.), approved August 7, 1946, authorized
the Reconstruction Finance Corporation to extend credits during the fiscal year
1947 to the Philippine Government of up to $75,000,000 upon such terms as that
agency, after consultation; with the National Advisory Council, should deem to be
wai:ranted by the financial position of the Philippine Government. A formal
request for an initial advance of $25,000,000 under this authorization was subsequently received in Washington. On the basis of this request the Council
approved consideration by the Reconstruction Finance Corporation of a loan
of $25,000,000 to the Philippine Government with interest at the rate of 2 percent
per annum and maturing on January 1,1952. This recommendation was accepted
by the Reconstruction Finance Corporation and the Philippine Government.
The Joint Finance Commission recommended by the Council was established
by agreement between the two Governments and has been working in Manha
since the end of January. The Commission is expected- to report to the two
Governments during the spring of this year.
War settlements arrangements and credits
The Council has continued to coordinate policy governing the financial settlements with foreign countries arising from the war. This work includes lend-lease
settlements, general financial terms for the disposal of surplus property located
abroad, adjustment payments for the expenditures of United States armed forces
in foreign countries, and settlement of other war claims. The Department
of State has primary responsibility for agreements concerning lend-lease and
surplus property located abroad, under general principles approved by the Council.
In many cases all pending war accounts with a particular country have been
negotiated at one time, as a means of facilitating agreeinent between the parties.
An over-all settlement was concluded with France on May 28, 1946, and similar
types of settlement were concluded with Belgium on September 24, 1946, and
with the Union of South Africa on March 2!l, 1947.
The agreement with France was reviewed by the Council. This over-all war
settlement resulted in a net French obligation to the United States of $720,000,000.
The amount of this obligation covers final settlement of lend-lease and reciprocal
aid, transfer of certain surplus property to France and French North and West
Africa on long-term credit, adjustment of the United States share of civilian supplies received by the French through combined military channels, and the settlement of other financial claims of each Government arising out of the conduct of
the war.
192
REPORT OF THE SECRETARY OF THE TREASURY
The agreement reached with Belgiuih covers final settlement of lend-lease and
reciprocal aid, transfer of surplus property in Belgium on long-term credit, the
adjustment of the United States share of civilian supplies received by the Belgians
from combiried military channels, and the settlement of other financial claims of
each Government arising out of the conduct of the war. An ancillary agreement
signed with Luxemburg settled outstanding claims of the United States and
Luxemburg Governments. The settlement with the Union of South Africa
covers lend-lease and reciprocal aid, mutual financial claims arising from the war,
and certain surplus property items.
Lend-lease and surplus property agreements were also concluded with India on
May 16, 1946, with Australia on June 7, 1946, and with New Zealand on July
10, 1946. • An agreement covering transfer of certain surplus property was signed
with China on August 30, 1946. There remain some unsettled war accounts on
which the Chinese Government has been requested to negotiate. Most of the
major aspects of lend-lease accounts with Latin-American countries have been
settled. Negotiations.on over-all settlements with Norway and the Netherlands
are now well advanced: In the case of Greece and Czechoslovakia, discussions
are in the initial stages. Formal negotiations with the Union of Soviet Socialist
Republics did not begin until after March 31, 1947.
In accordance with a recommendation of the Council and after consultation
with appropriate committees of the Congress and clearance with the Comptroller
General, the Department of State, at the direction of the President, announced
that payments would be made to the Italian Government of dollars already set
aside in the Treasury to cover expenditures made by United States armed forces
in allied military lira currency for the. procurement of supplies, services, and
facilities in Italy.
•
Office of Foreign Liquidation Comraissioner credits
The general policies estabhshed by the Council for the guidance of the Office
of the Foreign Liquidation Commissioner, Department of State, with regard to
the financing of surplus property sales abroad may be summarized as follows:
(a) Cash payment shall be obtained in United States dollars insofar as this
can be done without unduly reducing total proceeds.
(h) Where cash sales are not possible, credits repayable in dollars may be
extended by the Foreign Liquidation Commissioner who will endeavor to
make provision for this Government's right to obtain accelerated payments
in the debtor country's currency to meet United States Government expenditures in such country,
(c) Where dollar credits are extended, the terms shall not be more favorable
to recipient countries than 2% percent .interest and 30-year final maturity,
except in the case of surplus property sales made in connection with an over-all
settlement of war accounts.
(d) In exceptional circumstances local currency may be accepted by the
Foreign Liquidation Commissioner in amounts and under conditions considered appropriate by the State Department in consultation with the
Treasury Department,
(e) Insofar as practicable, Export-Import Bank funds should not be used
for the purchase of goods in the United States of the same types as are anywhere available as tJnited States surplus property.
When foreign countries make purchases of surplus property on credit terms
consistent with the Council's general policies, the individual transactions are not
usually referred to the Council for its consideration, but the Office of the Foreign
Liquidation Commissioner, informs the Council of the credits that have been
extended. In the case of proposed surplus property sales to Japanese agencies
involving different payment terms from those estabhshed by the Council's
general policies, the Council passed upon specific credit terms,
Pubhc Law 584, Seventy-ninth Congress, approved August 1, 1946, and known
as the Fulbright amendment to the Surplus Property Act of 1944, established the
Department of State as the sole disposal agency for surplus property located
outside the continental United States, its Territories and possessions; and substantially broadened both the authorized types of consideration that might be
accepted in the disposal of surplus property located abroad, and the authorized
use of the proceeds from the disposal of this property.
REPORT OF THE SECRETARY.OF THE, TREASURY
193
United States Maritime Commission foreign credits
Under the Merchant Ship Sa.ies Act of 1946, the United States Maritime
Commission was authorized, with certain limitations, to sell war-built vessels to
noncitizens at not less than the statutory sales price and upon terms and condi-'
tions not more favorable than those extended to United States citizens. Under
its statutory authority the Maritime Commission, after consultation with the
Council in each case, has extended the following credits for which contracts had
been signed as of March 31, 1947:
Amount of credit
(^^ millions of dollars)
Country:
Brazil__
France
Greece
Italy
Peru
Turkey
^___
^
._-_
2. 1
28, 8
40, 1
20, 4
2, 8
2, 8
--_:
1
Total
.
.
-
97.0
Ships for which m.ortgage contracts were not yet signed as of March 31, 1947,
have also been delivered to Norway under special custody agreements.
War Assets Administration foreign credits
After discussions with representatives of the War Assets Administration, the
Council approved in principle the extension of .credits by that agency to finance
sales of doraestic surplus property to foreign governm.ents. The details of coordinating such a program with the over-all foreign financial operations of this Government were worked out and confirmed by an exchange of correspondence between the Chairman of the Council and the War Assets Administrator in the
early part of this year. Several foreign applications for credits for the purchase
pf United States dom.estic surplus property have been acted on by the Council.
As of March 31, 1947, no contracts covering such purchases had been signed.
Credit terms
The establishm.ent and coordination of credit terms to foreign countries obtaining loans or credits from various United States, Government agencies has been a
continuous concern of the Council. In view of this Government's interest in
the work of reconstructing war-devastated countries and in promoting economic
development in underdeveloped countries, the Council recognized the need for
liberal credit terms which would facilitate and assist in this work and which
borrowers could be expected to meet without undue burden on their balances of
payments. At the same time, the Council took cognizance of the cost of loan
funds to the United States and the need for the various foreign lending agencies
of the Government to conduct their foreign credit operations on a self-sustaining
basis.
At the beginning of its operations the Council was confronted with the prpblem
of determining charges on Export-Import Bank long-term loans to countries
disrupted by the war. An interest rate of 3 percent was established on 20- to
30-year loans. On Export-Import Bank loans to finance the purchase of goods
requisitioned by foreign governments prior to VJ-day under lend-lease arrangements, it was considered appropriate to apply the terms contained in the lendlease 3 (c) agreements and established pursuant to section 3 (c) of the LendLease Act, Accordingly, the Bank's rate was set at 2J^ percent for 30-year loans
of this type. •
In the summer of 1946, detailed consideration was given by. the Council to
the Export-Import Bank rate on loans other than those for reconstruction purposes.
Among the factors" affecting the Council's decision was the desirability of establishing a rate which would attract private capital participation in the Bank's loan
program without unduly burdening foreign borrowers and which would be hkely
to conform with the future pattern of International Bank charges on. development
loans of comparable maturities. The Council also considered the cost to the
United States Government of public funds used by the Export-Import Bank and
the rate at which the Bank should accumulate reserves against possible losses.
The Council finahy determined that the average or ^effective rate on Export-
194
REPORT OF THE SECRETARY OF THE TREASURY
Import Bank development loans to foreign governments. Government agencies
and private borrowers should be 334 percent on 15-year maturities; and that this
rate should be adjusted upward or downward by the Bank according to the structure of rates for different maturities in the private capital market and, in the
case of loans to private borrowers without Government guarantee, according to
differences in risks.
In the spring of 1946, the Council considered the problem of credit terms on
the net obligation due this Government from the Provisional Government of
France as a result of an over-all settlement of war accounts with that country
and a bulk purchase by France of United States surplus property located abroad.
The Council determined that the interest rate on credits extended in the over-ah
settlement of war accounts with the French Government should be 2 percent and
that the period of repayment should be 35 years with an initial 5-year period of
grace on repayment of principal. While the rate of interest is thus the same as
under the financial agreement with the United Kingdom, the French agreement
differs in that it does not provide for any waiver of interest. The Council,
however, approved the inclusion of a provision whereby, if both countries agreed
that because of extraordinary and adverse economic conditions arising during
the course of payment any periodic payment would not be tb the common advantage of both governments, such payment might be postponed upon such terms
and conditions as might be agreed. The Council also made the above terms
applicable to over-all settlements of war accounts with other foreign governments.
Since it appeared that credits would be required in order to maximize the
ultimate proceeds from the disposal to foreign countries of United States surplus
property located abroad, the Council at an early stage in its activities considered
the subject of credit terms to be extended by the Office of the Foreign^Liquidation
Commissioner, After due consideration the Council determined that terms should
not be more favorable to foreign countries than 2^^ percent interest and 30-year
final maturity. An exception was later made for bulk purchases of surplus
property in connection with over-all settlement of war accounts, as noted above
in the French case. The Council also coordinated the payment terms on which
surplus property might be made available to Japanese agencies with the War
Department's arrangements for securing payments for imports irito Japan for
the prevention of disease and unrest and for the acconiplishment of the objectives
of the mission.
In accordance with the provisions of the Merchant Ship Sales Act of 1946,
the minimum rate of interest chargeable by the United States Maritime Commission on ship purchase credits to foreign purchasers is 3J4 percent and the
maximum amount of credit is limited to 75 percent of the sales price. It was
administratively determined by the Maritime Commission that the credit period
should not exceed the remaining economic life of the vessel. In the light of this
background, the Council, determined that the statutory minimum rate should be
charged.
Relief
The imminent termination of the UNRRA program led the United Nations
General Assembly in its fall, session of 1946 to consider means of providing for
the post-UNRRA relief needs of countries devastated by the war and not yet
sufficiently recovered to provide their own minimum requirements for basic
essentials such as food, medical supplies, and working capital for agriculture.
The United Nations Special Technical Committee on Rehef Needs After Termination of UNRRA estimated a total 1947 need of $583,000,000 for Austria;
Greece, Hungary, Italy, Poland, and Yugoslavia.
, The State Department in an independent analysis estimated a 1947 relief
deficit of $576,000,000 for Austria, Greece, Hungary, Italy, Poland,- and Trieste.
The State Department's estiiriate was arrived at in conformity with the United
Nations General Assembly's resolution of December 11, 1946, which defined 1947
foreign relief needs as the value of a country's net minimum import needs to
prevent suffering and economic retrogression. • The State Department carefully
considered what part of the total relief needs might properly be met by a United
States contribution.
In view of the studies prepared by the United Nations and-by the State Department, the Council considered the share recommended by the State Department
as an appropriate United States contribution to post-UNRRA relief during the
calendar year 1947. In recognizing the responsibility of the State Department
for the proposed amount and administration of the IJnited States contribution,
REPORT OF THE SECRETARY OF THE TREASURY
195
the Council expressed its opinion that the program would be consistent with the
foreign financial policy of the United States Government. In order to coordinate
the administration of United States post-UNRRA relief with other phases of this
Government's foreign financial policy the Council requested the State Department to report periodically on the allocation of relief funds and on the agreements
reached with the recipient countries. The President subsequently submitted to
the Congress an appropriation request of $350,000,000.
Other Council activities
Early in 1946 the Council determined that until further notice, foreign requests
for short-term loans on gold from Federal Reserve Banks need not be submitted
to the Council for consideration. The Chairman of the Board of Governors of
the Federal Reserve System was requested, however, to inform the Council
whenever a new loan of this type was granted. Loans on gold do not create a
net addition to foreign countries' dollar resources; dollars obtained through the
pledge of gold might alternatively have been obtained through sale of the gold
to the United States. The volume of such loans outstanding as of March 31,
1947, amounted to $131,800,000.
The Council formulated this Government's position with regard to the assumption by the Economic and Social Council of the United Nations of certain technical
functions of the League of Nations in connection with a series of international
loans made during the inter-war period. The Council agreed that these residual
technical functions were no longer of sufficient importance to warrant their assumption by the Economic and Social Council. These views were transmitted by
the State Department to the United States representative to the Economic and
Social Council for his guidance and instruction.
During March of this year, the Council studied the problem of export credit
insurance and transfer guarantees for United States exporters and concluded that
there did not appear at this time any convincing need for a Government system
of such insurance and guarantees. The Council agreed, however, that if sufficient
need could be demonstrated a properly administered system of Government export
credit and transfer risk insurance would seem feasible.
The Council made available to the United States delegation to the UNRRA
conference in August 1946, specialized studies of the capacities to pay of certain
UNRRA recipient countries.
.
The Council, through the Securities and Exchange Commission, has kept itself
informed of registrations and public offerings of foreign government bonds in the
United States raarket.
President's Committee for Financing Foreign Trade
On June 26, 1946, the President appointed a committee of bankers and industrialists to work in conjunction with the National Advisory Council on the problem of financirig foreign trade. The President pointed out that United States
foreign trade, export and import, must in the long run be privately handled and
privately financed if it is to serve well this country and the world economy.
The committee is composed of the following members:
Mr, Winthrop W. Aldrich, chairman. The Chase National Bank of the City
of New York.
Mr. Champ Carry, president, Pullman-Standard Car Manufacturing Corp.
Mr. Walter J. Cummings, chairman, Continental-Illinois National Bank and
Trust-Co.
Mr. L, M, Giannini, president. Bank of America.
Mr. Paul G, Hoffman, president, Studebaker Corp.
Mr. Edward Hopkinson, Jr., partner, Drexel & Co.
Mr. Fowler McCormick, chairman. International Harvester Co,
Mr. Irving S. Olds, chairman. United States Steel Corp.
Mr. Herbert H. Pease, president. New Britain Machine Co.
Mr. Gordon S. Rentschler, chairman. National City Bank of New York.
Mr. A, W. Robertson, chairman, Westinghouse Electric Corp,
Mr. Tom K. Smith, president. The Boatmen's National Bank of St. Louis.
At the first joint meeting of the President's Committee for Financing Foreign
Trade and the National Advisory Council in September 1946, the! Committee
recommended to the National Advisory Council that they confer informally on
designated topics concerning which the Council desired information and advice,
764788—48
14
196
REPORT OF THE SECRETARY OF THE TREASURY
so that the Committee might make available to the Council the points of view
of its members in the varying fields represented by them. Accordingly, meetings
have been held at approximately monthly intervals to consider subjects of mutual
interest.
III. ACTIVITIES OF THE COUNCIL PROM OCTOBER 31, 1946, TO MARCH 31, 1947,. RELATING TO THE INTERNATIONAL MONETARY FUND AND THE INTERNATIONAL BANK
FOR RECONSTRUCTION AND DEVELOPMENT
Effective operation of the International Monetary Fund and the International
Bank leading toward full achievement of the purposes stated in their articles of
agreement is a major consideration of this Government, not only because of its
interest as a member in the adoption of sound and constructive international
economic policies but also because of the necessity of coordinating United States
Government foreign financial operations with the currency transactions and loans
of these organizations. The National Advisory Council under the statutory
authority of the Bretton Woods Agreements Act has, therefore, engaged in regular discussions with the United States Executive Directors of the Fund and Bank
for the purpose of giving them assistance in their joint efforts with the representatives of other member countries to carry forward the operations of the Fund and
Bank. While the Fund and Bank can evolve many of their policies only in the
light of specific developments, these institutions have already investigated in
detail and resolved many of the policy and administrative problems which confronted them.
..
Par values
The first major problem facing the Fund during the recent period was the
establishment of initial par values of members' currencies for purposes of the Fund.
In discussing this matter with the United States Executive Director, the Council
recognized the complexity of the problem involved and expressed views substantially in accord with those coritained in the statement issued by the Fund in connection with the announcement on December 18, 1946, of the schedule of initial
par values.. Certain excerpts from the Fund's statement follow:
This is the first time that a large number of nations have submitted their exchange rates to consideration
by an international organization and thus a new phase of internationai monetary cooperation has begun.
The major significance of the present step is not in the particular rates of exchange which are announced,
but In fact that the participating nations have now fufly established a regime wherein they are pledged to
promote exchange stability, to make no changes in the par values of their currencies except In accordance
with the Fund Agreement, and to assist each other in attaining the general objectives of the Fund.
The initial par values are. In all cases, those which have been proposed by members, and they are based
on existing rates of exchange. The acceptance of these rates Is not, however, to be Interpreted as a guarantee by the Fund that all the rate's wfll remain unchanged. As the Executive Directors of the Fund stated
in their First Annual Report, Issued In September: "We recognize that in some cases the initial par values
that are established may later be found Incompatible with the maintenance of a balanced international payments position at a high level of domestic economic activity. * * * When this occurs, the Fund wfll be
faced with new problems of adjustment and will have to recognize the unusual circumstances under which
the initial par values were determined. It is just at such times that the Fund can be mbst useful In seeing
that necessary exchange adjustments are made in an orderly manner and competitive exchange depre..ciation is avoided."
The Fund realizes that at the present exchange rates there are substantial disparities in price and wage
levels among a number of countries. In present circumstances, however, such dlsjparltles do not have the
same significance as In normal times. For practically all countries, exports are being limited mainly by
difficulties of production or transport, and the wide gaps which exist in some countries between the cost of
needed imports and the proceeds of exports would not be appreciably narrowed by changes in their currency
parities. In addition, many countries have just begun to recover from the disruption of war, and efforts to
restore the productivity of their economies may be expected gradually to bring their cost structures into,
line with those of other countries. Furthermore, for many countries now concerned with combating inflation there is a danger that a change In the exchange rate would aggravate the internal tendencies toward
inflation.
In view of all these considerations, the Fund has reached the conclusion that the proper course of action
is to accept as initial par values the existing rates of exchange.
The par values announced were the existing rates of exchange as certified by
member countries. In the 'cases of Brazil, China, Dominican Republic, Greece,
Poland, Yugoslavia, France in respect of Indochina, and the Netherlands in
respect of the Netherlands Indies, an extension of time for the determination of
their initial par values was granted by the Fund, The Fund stated that the initial
par value of the currency of Uruguay would not be definitely established until the
completion of certain legislative proceedings in Uruguay,
March 1, 1947, was the date established by the Fund for the beginning of
exchange transactions. As of March 31, 1947, no applications for the purchase of
foreign exchange had been received by the Fund.
• °
REPORT OF THE SECRETARY OF THE TREASURY
197
Fund's service charge
During this period the United States Executive Director of the Fund requested
the advice of the Council concerning the size of the service charge to be levied by
the Fund on exchange transactions. The articles of agreement specify that "Any
member buying the currency of another member from the Fund in exchange for its
owri currency shall pay a service charge uniform for all members of three-fourths
percent in addition to the parity price. The Fund in its discretion may increase
this service charge to not more than one percent or reduce it to not less than onehalf percent."
In considering this matter the Council recalled that this Government had taken
the position at the time the Bretton Woods legislation was passed that the Fund
should interfere as little as possible with the operations of private foreign exchange
markets and should supplement rather than displace the use by member countries
of their own exchange resources. The Council also considered the possible effects
of different.rates on the earnings of the Fund. After careful study, the Council
advised the United States Executive Director that it saw no adequate reason at
this time to change the service charge of three-fourths percent.
Other Council actions on Fund matters
In December 1946, the Council on behalf ofthe United States Government
notified the Managing Director of the Fund that this Government-was prepared
to accept the obhgations of article VIII, sections 2, 3, and 4 of the Fund agreement
with respect to avoidance of restrictions on current international payments, avoidance of discriminatory currency practices, and convertibility of balances of its
currency held by other members of the Fund.
At the request of the Managing Director of the Fund that this Government
designate the depository at which it would prefer to pay its gold subscription, the
Council notified the Fund of this Government's preference to pay its gold subscription at the Federal Reserve Bank of New York, the depository of the Fund
in the United States.
Changes in rules and regulations of the Fund
Among several amendments and additions to the rules and regulations of the
Fund in the recent period, the m o s t important pertain to the procedure for
handling by the Fund of requests from its members for the purchase of currencies.
The relevant sections of the rules and regulations are as follows:
G-3. When a duly authenticated request for the purchase of foreign exchange in accordance with Article
V, Section 3, is received, the Fund shafl, on the third business day following the day of receipt of the request
instruct the appropriate depository'to make the transfer, except in cases which the Executive. Board may
indicate. The first business day after receipt of the request shall be regarded as the first of the three days.
. G-5. When the request of a member, if consummated, would increase to more than 5 percent of its quota
the aggregate purchases by the member pursuant to Article V, Section 3, during the thirty-day period preceding the date of actlon.specified in G-3, the Managing Director shall notify each Executive Director (or his
Alternate if the Executive Director Is not available) on the first business day after receipt of the request.
If neither the Executive Director nor the Alternate Is In Washington or Its environs, the notification will be
assumed to have been duly delivered if appropriate notice is delivered to his office.
At the request of any Executive Director or on the initiative of the Managing Director, a special meeting
shall be cafled by the Managing Director to discuss the request as soon as feasible, but not later than the
morning of the second business day.
'
'
Organizational change in the Fund
On March 31, 1947, Mr. Harry D. White tendered his resignation as the United
States Executive Director of the Fund to become effective after the return from
Europe of the Managing Director of the Fund in May. In recognition of his
outstanding services the Executive Board of the Fund named Mr. White as
Honorary Adviser to the International Monetary Fund.
International Bank loan applications
Loan applicatioris totaling $2,345,000,000 had been presented to the International Bank as of March 31, 1947. The countries and amounts involved are:
Chhe, $40,000,000; Czechoslovakia, $350,000,000; Denmark, $50,000,000; France,
$500,000,000; Iran, $250,000,000; Luxemburg, $20,000,000; Netherlands,
$535,000,000; and Poland, $600,000,000. The Government of Greece has also
indicated its intention to submit an application to the Bank upon completion of
198
REPORT OF THE SECRETARY OF THE TREASURY
its plans for reconstruction projects. Although negotiations with several of the
applicants were well advanced, no loans had been appro ved. by the Bank as of
March 31, 1947.
In discussions concerning these applications with the United States Executive
Director, the Council recognized that in order to deal with such matters as relative
priorities of usefulness and urgency among loan projects submitted by applicants, it was advisable for the Bank to give concurrent consideration to various
loan applications.
Terms and conditions of Bank loans
The Council has expressed to the United States Executive Director its views
with regard to the Bank's charges on long-term loans. The Bank is required by
its articles of agreement to impose on borrowers a commission of 1 to 1J4 percent
per annum for the creation of a special reserve, but the size of the interest charge"
to be made by the Bank is a matter for determination by the Bank in the light of
such factors as the rate of interest paid on its borrowings and the amount of liquid
funds which the Bank would consider it prudent to keep on hand.
The Council requested the United States Executive Director to attempt to
secure agreement by the International Bank to the incorporation in all its loan
contracts of a provision requiring consultation with the Bank by any borrower
who, in the judgment of the Bank, was pursuing policies which might interfere
with the success of the projects financed by the Bank in any member country or
jeopardize fulfillment of the borrower's, or other member countries', obligations
to the Bank.
•
Use of United States capital and flotation of securities
The Bank, under its articles of agreement, is required to obtain the approval of
"the United States Government if it wishes either to use this country's 18 percent
capital contribution for making loans or to raise funds by selling securities in this
country. Hence, before the Bank could undertake any substantial .program of
loan commitments involving the use of United States dollars, such approval was
needed.
On March 26, 1947, following earlier discussions between the Council and the
United States Executive Director, the Bank formally requested approval to use
the full amount of this country's 18 percent capital' contribution for making loans,
and this approval was granted shortly thereafter by the Council on behalf of the
. United States Government.
The Council also discussed-with the United States Executive Director various
problems connected with the flotation of the Bank's securities in the United States
market, including the possible amount of the Bank's initial issues. The Council
advised him that on formal request by the Bank this Government would assent
to the Bank's selling initial issues of securities on this market within the amounts
discussed.
Organizational changes in the Bank
Mr. John J. McCloy was elected President of the Bank by the Board of Executive Directors on February 28, 1947, to succeed Mr. Eugene Meyer whose riesignation became effective December 18, 1946. On February 28, 1947, Mr. McCloy
announced the election of Mr. Robert L. Garner as Vice President of the Bank.
Following the resignation of Mr. Emilio G, Collado as United States Executive
Director of the Bank, the President of the United States nominated Mr. Eugene
R. Black for that position. Mr. Black's nomination was confirmed by the United
States Senate on March 14, 1947.
Membership in the Fund and Bank
The admission of three countries into Fund membership and four countries into
Bank membership between October 31, 1946, and March 31, 1947, raised the
number of member countries in each institution to 42. As of March 31, 1947, the
total quotas of members of the Fund amounted to $7,710,500,000, whhe the total
capital subscriptions of members of the Bank amounted to $8,013,500,000.
Members that have recently joined these organizations and the amounts of their
subscriptions^are indicated below.
REPORT OF THE SECRETARY OF THE TREASURY
199,
Colombia, which was already a member of the Fund, signed the articles of
agreement of the International Bank on December 26, 1946. Its subscription
to the capital of the Bank is $35,000,000:
Venezuela became a member of the International Monetary Fund and of the
International Bank on December 30, 1946. Having participated in the Bretton
Woods Monetary and Financial Conference, Venezuela was among the nations
entitled to sign the articles of agreement of the Fund and the Bank before December 31, 1946. Venezuela's quota in the Fund is $15,000,000 and its subscription to
the Bank is $10,500,000.
• Turkey and Italy signed the articles *of agreement of the Fund and of the
Bank on ]\Iarch 11 and March 27, 1947, respectively. Their applications for
membership in the Fund and the Bank had been approved by the Boards of
(Grovernors of the Bank and the Fund at their first annual meeting in Washington,
September 27 to October 3, 1946. Turkey's quota in the Fund and subscription
to the Bank are each $43,000,000; Italy's quota in the Fund and subscription to
the Bank are each $180,000,000,
; Syria and Lebanon, whose applications for membership were also approved
at the first annual meeting of the Boards of Governors of the Fund and Bank, did
. riot sign the articles of agreement until after March 31, 1947.
. United States payments to the Fund
On February 26, 1947, the United States Government paid the remaining
balance of its subscription to the International Monetary Fund in accordance
m t h article III, section 3 and article XX, section 4 (c) of the Fund agreement,
which provide for full payment on or before the date when the Fund begins
exchange transactions.
As of March 31, 1947, therefore, the United States had paid its entire subscripiion of $2,750,000,000 to the Fund. Of this amount $687,500,000.11, representing
the 25 percent gold portion of the subscription stipulated by article III, section
h (b) (i) of.the Fund agreement, was paid in.gold; $280,499,999,89, representing
approximately 10 percent of the United States subscription, was paid in United
States dollar funds; and $1,782,000,000 was represented by United States nonhegotiable, noninterest-bearing demand notes. By delivery of these special
United States notes in accordance with section 7 (c) of the Bretton Woods Agreements Act, the United States exercised the option available under article III,
section 5 of the Fund agreement. These notes are payable on demand in dollars
when needed by the Fund in its operations.
United States payments to the Bank
\ On November 21, 1946, the United States made a payment of the second
5. percent on its subscription to the capital of the Bank pursuant to the Bank's
notice, of call for payment. On February 24, 1947, the United States made a
further payment of 5 percent on its capital subscription. The amount of each of
these pavments was $158,750,000, totahng $317,500,000.
^ As df March 31, 1947, the United States had paid 15 percent ($476,250,000) of
its subscription to the capital of the Bank. Of this amount, $407,035,000 was
represented by nonnegotiable, noninterest-bearing demand notes in accordance
with section 7 (c) of the Bretton Woods Agreements Act and article V, section 12
of the articles of agreement of the Bank, and $69,215,000 was represented by
United States dollar funds.
The Barik has given notice that it intends to make an additional cah of 5 percent
of capital, payable as of May 26, 1947. When this payment of $158,750,000 has
been rriade, the total United States paid-in capital will amount to $635,000,000, or
20 percent of the United States subscription. Under the Bank's articles of agreement there can be no further calls for payment upon the United States subscription
unless the Bank should need to call on member countries for funds to meet its
obligatioris.
IV.
SURVEY OF POSTWAR FOREIGN FINANCIAL ASSISTANCE EXTENDED BY THE
UNITED STATES GOVERNMENT
l^y VJ-day, this Government had already made preparations to meet many of
the difficult foreign financial problems connected with the postwar period of
^-djustment and reconstruction. The terms of the Lend-Lease Act enabled the
200
REPORT "OF THE SECRETARY OF THE TREASURY
President to make settlements without imposing upon the recipients of lend-lease
aid a dead-weight burden of debt resulting from the Allied war effort. The Congress had approved this Government's participation in the United Nations Relief
and Rehabilitation Administration. It had increased the lending authority of the
Export-Import Bank from $700,000,000 to $3,500,000,000 for the primary
purpose of enabling that agency to meet part of the foreign postwar reconstruction
needs. It had authorized this Government's membership in the International
Monetary Fund and the International Bank for Reconstruction arid Development.
These measures were shortly thereafter supplemented, by an important additional step—the approval of the Financial Agreement with the United Kingdom.
Scope of operations through March 31, 1947
United States Government foreign financial assistance since the war has taken
a variety of forms, including (1) cash loans and advances, (2) transfers of goods
and services on deferred payment terms, and (3) contributions of rnoney and
supplies. Such assistance has been supplemented by the United States subscriptions to the International Monetary Fund and the International Bank,
The dollar magnitude of the foreign financial assistance extended by the United
States Government is presented in the following summary table, A country
breakdown of the data covering the period June 30, 1945, through December 31,
1946, and an explanation of the nature of the data are presented in appendix B.
The foreign financial assistance extended by the United States Government is
characterized by a broad geographical distribution covering more than 50 countries. The preceding chart [omitted here] shows the shares received by various
geographical areas. Of the $14,300,000,000 total avaiiable between June 30,
1945, and December 31, 1946, almost one-half ($7,100,000,000) is definitely
assignable to the United Kingdom and other northern and western European
countries. This share consists almost entirely of loans and credits for reconstruction purposes.
'
The bulk of other aid and grants was extended to central, southern, and eastern
Europeari countries and far eastern areas where provision of human necessities
was urgently required before any appreciable reconstruction and development
work could be undertaken. The aid for Germany and Japari, aside from the
basic civilian supply program designed to prevent disease and unrest, is intended
to restore economic activity, especially in export industries, and to relieve the
occupying powers of the burden of supporting these countries.
Present status
An appraisal of the financial assistance extended to foreign countries by the
United States Government is particularly appropriate at this time. The International Monetary Fund and the International Bank for Reconstruction and
Development, upon which the United States Government places reliance as the
principal instruments to achieve the long-range international financial objectives
of the member countries of these two organizations, have recently come into
operation. The Export-Import Bank has committed or earmarked practically
all of the $2,800,000,000 increase in lending authority granted by the Congress
in July 1945, mainly for the extension of reconstruction loans to war-devastated
areas. Private United States capital has'reentered the field of foreign finaricing
but only on a very limited scale. UNRRA has virtually terminated its activities
but urgent relief needs still remain in certain areas. Finally, the decision is being
made by maJny countries as to whether the world will move towards a freer and
higher level of international trade through such an instrumentality as the International Trade Organization or towards a system of closed trading areas.
Two immediate postwar financial objectives of this Government. which have
already been largely achieved are the settlement of war accounts and the disposal
of surplus property located abroad.
All major war settlements have either been completed or are in process of
negotiation. In accord with the Lend-Lease Act, terms have been designed to
avoid imposition of a burden on trade between the United States and allied
countries in the form of repayments which would unduly aggravate the postwar
balance of payments difficulties faced by most of these countries.
201
REPORT OF THE SECRETARY OF THE TREASURY
United States Government postwar foreign financial assistance—Amount available through Mar. 31, 1947, and status as of Dec. 31, 1946, hy type and agency
concerned
[In millions of dollarsl
Type and agency concerned
Loans:
Loan to United Kingdom (Treasury Department)
Reconstruction, development, and other loans
(Export-Import Bank)
Loans to United Kingdom, Phfllppine Republic,
and others (RFC)
Total.
Property credits:
Lend-lease "pipe line" and inventory credits
(State Department)-Surplus property credits* (OFLC)
-.
.Ship sales credits (U. S. Maritime Commission).
Surplus property credits" ("War Assets Administration)
'..
Miscellaneous
Total
_
Loans and property credits, totalOther aid:
Civilian supplies, principally to occupied areas
(War and Navy Departments) 8__
Postwar lend-lease supplies (State Department)s.
1942 congressional credit of $500,000,000 to China"
(Treasury Department)-.
Cotton advances for Germany and Japan lo
(U. S. Commercial Company and Commodity
Credit Corporation)-_-,_-.
Other advances for Gerinany (U. S. Commercial Company)
_
Total..
Grants:
UNRRA supplies (United States Government
contribution).
Grants to Philippine Republic (State Department and War Damage Commission)
Grants to Latin America (State Department). _.
Total
Grand total-
Amount
available
June 30,
i945-Mar
31, 1947 1
Ambunt
avaflable
June 30,
1945-Dec.
31,1946 1
3,750
3,760
2,552
2,425
Amount
utilized
Julyl,
1945-Dec.
31,1946
600
Unuti- Outstanding inlized bal- debtedance as ness as of
of Dec. Dec. 31,
31, 1946
1946 2 •
3,150
600
1,339
3 1,248
62
62
60
236
6,364
6,237
4, 549
2,084
1,446
1,248
150
1,446
1,140
107
204
265
79
1,286
«875
28
1,242
875
28
10
20
20
20
2,874
9,238
2,713
8,950
2,165
3,853
11 1, 202
11977
"726
"726
977
726
120
120
120
» 162
"137
137
2,218
1,968
1,960
2,700
2, 700
620
27
620
• 27
3,347
3,347
14,803
14,265
20
548
5,097
2,209
7 4; 293
816
100
14
520
13
7,811
1 Unutilized balances of previous authorizations as of June 30,1945, plus net authorizations, July 1, 1945Mar. 31,1947, in the case of the first column and plus net authorizations, July 1,1945-Dec. 31, 1946, in the
case of the second column. .
2 Excludes indebtedness arising out of World War I.
3 Includes $7,000,000 participation by another agenc3^
4 Extended for pm-chase of surplus property located abroad.
v
8 Amount does not reflect small repayments received through Dec. 31, 1946, for which detafled data are
not yet available in Washington, D . C .
6 Extended for purchase of surplus property located in the United States.
7 Consists of outstanding indebtedness as of June 30, 1945 ($573,000,000) plus amount utflized July 1,
1945-Dec. 31, 1946 ($3,853,000,000), minus amount of repayments July 1, 1945-Dec. 31, 1946 ($131,000,000)
and a charge-off of approximately $1,000,000. Calculation of outstanding indebtedness by this formula
wifl differ slightly from indebtedness shown in the table due to rounding. The $573,000,000 of outstanding
Indebtedness as of June 30, 1945,-consisted of: Export-Import Bank, $221,000,000; Lend-Lease, $55,000,000;
Reconstruction Finance Corporation, $297,000,000. The repayments between July 1, 1945, and Dec. 31,
1946, consisted of: Export-Import Bank, $59,000,000; Lend-Lease, $10,000,000; Reconstruction Finance
Corporation, $62,000,000.
8 Terms stifl subject to settlement as of Mar. 31,1947.
9 Terms on entire $500,000,000 stfll subject to settlement as of Mar. 31,1947.
10 Reimbursement based on the requirement that approximately 60 percent (subject to adjustment) of
textiles manufactured from Commodity Credit Corporation cotton dming each 3 months' period will
be delivered to United States Commercial Company for sale.
" Amount utiUzed. Estimated for "Civilian supplies, principaUy to occupied areas" and "Postwar
lend-lease supplies" for period June 30,1945-Mar, 31,1947.
202
REPORT OF THE SECRETARY OF THE TREASURY
Over 80 percent of all United States salable surplus located abroad (including
estimated future declarations) has been disposed of, and largely delivered, during
the period when such property was likely to contribute most to the restoration of
war-devastated areas and under terms conducive to maximization" of eventual
proceeds for this Government. Substantial amounts of domestic surplus property
and of surplus ships may also be disposed of by the War Assets Administration
and the Maritime Commission through sales abroad on deferred payment terms.
Other postwar foreign financial objectives of the United States Government
include alleviation of the suffering of the peoples of war-devastated areas, restoration of the productive capacities of these areas, and development of economically
undeveloped countries. These objectives have only been partially attained to
date. At the same time the purchasing power represented by unutilized lending
authority, unutilized loan balances, unutilized relief grants and the gold and foreign exchange assets of foreign countries has been cut by the increase in prices
here and abroad.
Relief and other forms of aid have carried a number of countries through the
worst period of postwar readjustments. In central and southern Europe, and in
parts of the Far East, however, the task of providing even a minimum of subsistence goods largely remains.
It has proved necessary to propose to the Congress a special post-UNRRA appropriation of $350,000,000 for the calendar year 1947 whhe, in the case pf Greece,
further direct assistance in economic rehabilitation is included in the $400,000,000
appropriation request for Greece and Turkey. The purposes to be served by this
latter program have been fully developed in hearings before congressional committees and in debates in the Congress. Assistance for military supplies, as well
as the aid designed' to restore political and economic stability in Greece, do not
fall within the purposes of the Export-Import Bank or the International Bank for
Reconstruction and Development.
In the case of the combined British and American zones of Germany, the net
iiriport requirements for minimum consumers' needs and basic working capital
requirements are being shared between the two occupying powers. The outlay
for this purpose on the part of the United States for the period 1947 through 1949
has been estimated by the occupation authorities at $500,000,000. Additional
United States financing may prove necessary to support the economies of Japan
and the occupied area of Korea.
Reconstruction of the productive facilities of some war-devastated countries
and development of certain econonaically undeveloped areas have already been
accelerated by the extension of United States Government loans. In northern
and western Europe, for example. United States reconstruction loans have made
available the financial means of achieving a considerable degree of recovery from
the effects of the war. Even in countries in these areas, however, shortages of
industrial working capital such as coal have kept the rate of reconstruction below
that previously anticipated.
The Export-Import Bank will continue not only to disburse substantial amounts .
on outstanding commitments but also to undertake new operations complementing
those of other institutions. Coordination of the activities of the Export-Import
Bank and the United States representatives on the International Bank will be
undertaken by the National Advisory Council and will be guided by the particular
circumstances in each case. In general, it may be expected that projects deemed
appropriate for consideration by the JExport-Import Bank would be those in
which there is a special and important tJnited States interest. Such interest
may exist because the. project is designed to open up an additional s^ipply of
essential imports into the United States, or because it requires United States
equipment and services of kinds which this country especially desires to export.
Such interest may also exist because the project is being sponsored and financed
in part by private United States interests, or because it is in a field in which the
Export-Import Bank already has participated financially, or because the applicant
country is not yet a member of the International Bank. The Bank will also continue, of course, to receive applications from United States exporters and importers
who do not have direct access to the International Bank. In general, too, it
may be expected that the Export-Import Bank will limit itself to projects that
can be amortized in a relatively short peripd of years.
The Export-Import Bank had unutilized funds at its disposal as of March 31,
1947, of approximately $320,000,000, after deduction of earmarked amounts for
China and Italy Applications were pending before the Bank at that time in
an aggregate amount in excess of this remaining lending authority. On the other
REPORT OF THE SECRETARY OF THE TREASURY
203
hand, the Bank has the prospect of recouping lending authority from time to time
as outstanding loans fall due and are repaid, as present commitments to make
loans are canceled or expire, and as private capital may be induced to participate
at its own risk in the outstanding loans of the Bank.
In order to meet reconstruction and development requirements, the International Bank must also rely heavily upon dollar funds. For the present a large
part of the needed goods can be obtained only in the United States, and there are
few countries outside the United States whose balance of payments position
permits them to engage in an}^ substantial export of capital. Tlirough the payment of 20 percent of its subscription to the capital of the Bank, the United States
Government is providing $635,000,000 for the Bank's use, and similar dollar
capital contributions by other members raise the total of the Bank's available
United States dollar funds to about $725,000,000. For the rest of its dollar
needs, the Bank must rely upon its ability to draw funds from the private capital
market in the United States. The timing and extent of private capital investment abroad, either directly or through the International Bank, will determine to
a considerable extent the ability of this Government to withdraw from the field
of large-scale direct foreign lending without sacrificing the basic objectives of its
foreign policy.
'
,
Temporary balance of payments deficits, that develop in the current international transactions of member countries may require financing through the International Monetary Fund. As in the case of foreign loan requirements and the
International Bank, however, monetary stabilization requirements of a type or
in an amount that cannot be met by the International Monetary Fund may
develop. Such cases, particularly when they involve special interests of this
Government, may be handled by the United States'Stabilization Fund in harmony
with the achievement of the objectives of the International Monetary Fund.
The subject of repayment of United States foreign loans was treated in some
detail in pages 5 to 7 of the ''Statement of the Foreign Loan Policy of the United
States Government by the National Advisory Council on International Monetary
and Financial Problems" transmitted by the President to the Congress on Marclfi
1, 1946. At this time, the Council wishes to emphasize again that—
* * * the ability of foreign countries to transfer interest and amortization on foreign loans to the United
States depends upon the extent to which we make dollars avaflable to the world through imports of goods
and services, including personal remittances and tourist expenditures, and through new investment abroad.
The extension of foreign financial assistance by this Government, in conjunction
with its-pursuit of a commercial policy designed to reduce restrictions on the free
flow of international trade, will help the United States to inaintain a volume of
•exports appropriate for a country with its tremendous productive capacity, and
a volume of imports that will permit repayment of its loans to foreign countries,
increase the standard of living, and provide needed basic resources. This Government's policies are therefore designed to make an important (contribution iiot
only to world stability but also to the welfare of the American people.
In 1946, total transfers of goods and services to foreign countries amounted to
$15,300,000,000, while United States imports of goods and services amounted to
only $7,100,000,000. Utilization by foreign oountries of United'States 'Government loans and other aid, including private donations and remittances, served to
finance approximately $6,000,000,000 of the net balance. About $2,000,000,000
was financed through the use by foreign countries of their own dollar assets and
gold.
Foreign requirements of goods and services from the United States to continue
relief iand reconstruction programs, to meet deferred demands from the war period
and to continue development projects remain large in 1947, The Department of
Commerce reports that in the first quarter of 1947, total United States transfers,
of goods and services to foreign countries amounted to almost $4,900,000,000
while United States iriaports of goods and services amounted to slightly more than
$1,900,000,000. The first quarter amounts are equivalent to an annual rate of
$19,500,000,000 of transfers of goods and services to foreign countries and only
about $7,700,000,000 of imports. During the first quarter of 1947, foreign countries financed the difference between United States transfers of goods and services
arid United States imports of goods and services by net utilization of about
$1,900,000,000 of United|States Government loans and other aid, including private
donations and^rremittances, and by a reduction of about $1,100,000,000 in their
own dollar assets and gold.
204
REPORT OF T H E SECRETARY OF T H E TREASURY
Unutilized a m o u n t s of United States foreign loans and aid declined from
$6,500,000,000 as of December 31, 1946, to about $5,400,000,000 on March 31,
1947. Foreign gold and dollar assets in t h e form of short-term balances and
marketable securities declined from approximately $25,000,000,000 as of December 31, 1946, to about $24,000,000,000 on March 31, 1947. A sizable portion of
these gold and dollar assets and of new foreign gold production, currently a t t h e
r a t e of a b o u t $700,000,000 per a n n u m exclusive of production of t h e Union of
Soviet Socialist Republics, m u s t be maintained as working balances for t r a d e
purposes a n d currency reserves.
As of March 31, 1947, almost all United States governmeiital resources authorized for foreign financial assistance, excluding United States participation in
t h e International Monetary F u n d and t h e International Bank, h a d been comm i t t e d to foreign countries. I t has during t h e period under review become increasingly clear t h a t such resources as remain available will not, by reason either
of their a m o u n t or of t h e n a t u r e of developing needs abroad, prove a d e q u a t e for
t h e accomplishment of t h e purposes for which foreign financial assistance has been
provided. T h e question of t h e extent to which this country will need t o provide
additional assistance tb foreign countries cannot be readily answered. T h e
agencies represented on the National Advisory Council are giving continuing consideration to this m a t t e r .
JOHN W .
SNYDER
Secretary of the Treasury,
Chairman of the National Advisory Council on International Monetary and
Financial Problems.
G.
C.
MARSHALL,
W.
A.
HARRIMAN,
M.
S.
ECCLES,
Secretary of State,
Secretary of. Commerce.
Chairman of the Board of Governors of the Federal Reserve System.
WM.
M C C . MARTIN,
Jr.y
Chairman of the Board of ^Directors of the Export-Import Bank of Washington.
APPENDIX A
SECTIONS OF T H E BRETTON WOODS A G R E E M E N T S ACT RELATING TO T H E
NATIONAL A D V I S O R Y
COUNCIL
(59 s t a t . 512; 22 U. S: C. 286b)
National Advisory Council on International M o n e t a r y a n d Financial problems
[For sections 4 a n d 14 of t h e act, omitted here, see t h e full text of t h e act in t h e
Annual Report of t h e Secretary of t h e Treasury for 1945, beginning on page
382,]
.
APPENDIX:
B
STATISTICAL A P P E N D I X
Explanatory Notes ^
Of t h e tables t h a t follow, tables A through E relate in general to credit extensions in t h e postwar period by t h e Uriited States Government to foreign countries,
both to governmental a n d to private entities. Because t h e d a t a are readily
available only on a quarterly basis, and there were some credits of a postwar
character between J u n e 30, 1945,- a n d VJ-day, J u n e 30, 1945, was a d o p t e d as the
beginning of the period covered by t h e tables. Some of t h e authorized a m o u n t s
presented in table A for Office of Foreign Liquidation Commissioner a n d lend-lease
credits are estimates subject to later adjustment.
D a t a with respect to t h e following types of transactions are included in tables
F through H : Civilian supply distributions, postwar lend-lease accounts, special
programs of advances for Germany and J a p a n for procurement of raw materials,
financial aid agreements, a n d the contributions to t h e United Nations Relief a n d
Rehabilitation Administration.
1 All figures are to the nearest $100,000; therefore in certain adjustments there will be an apparent inaccuracy of 0.1, with corresponding discrepancies in the totals.
REPORT OF THE SECRETARY OF THE TREASURY
205
Certain other types of transactions through which foreign countries acquired
dollars, such as the payments on net troop pay account and for supplies provided
to the American forces, are excluded because they are considered as payments for
services received. Advance payments on commodity procurement contracts and
short-term credits (less than 6 months with respect to Office of Foreign Liquidation Commissioner; 90 days or less with respect to all other agencies), such as the
revolving credits of the Export-Import Bank^ are also excluded. Loans and
credits to American organizations, everi though for the ultimate benefit of foreign countries, were eliminated because the indebtedness is that of the American
organization and the aid rendered foreign countries.is private rather than governmental. On the other hand, loans to finance exports by American companies
are included since the foreign country is the recipient of the credit and the foreign importer is the debtor.
DEFINITIONS
Because of the wide variety of transactions and differences in the accounting
procedures of the lending agencies, it was impossible to prepare simple definitions
applicable to all cases, but the classifications used are as consistent in principle
as possible.
Sales of surplus property against foreign currencies and other property when the
currencies have been paid to the account of the United States, or title to the other
property has been transferred are considered as cash, not credit transactions, even
though there are quantitative hmitations on the use of the foreign currencies
which prevent their complete utilization for a year or more. On the other hand,
sales against foreign currencies, services or property, which are to be paid, performed, or transferred upon demand, are considered as credit transactions to the
extent that demand has not been made.
Net authorization covers all loans and credits approved by the responsible
officials of the lending agencies from available funds even if they have not.been
signed or formalized by credit agreements. Because the lack of formal agreement
may become important in some instances, the amounts in this category in.table A •
have been shown in detail in footnotes. Cancellations and expirations up to
December 31, 1946, have been deducted from the amounts authorized.
Utilized is defined as follows:
(a) Loans such as those by the Export-Import Bank and the Reconstruction Finance Corporation; also, the loan to the United Kingdom—disbursed
under the terms of the agreements.
(b) Credits by the Office of the Foreign Liquidation Commissioner—
amounts involved in sales contracts signed, including bulk sales, regardless
of the time of delivery of the property.
(c) Settlements for lend-lease transfers—billings presented to foreign governments. In the case of Australia, France, and the United Kingdom,
however, the amounts stated in the agreements were considered as final,
' notwithstanding the fact that some of the formalities of billing might not
have been completed as of December 31, 1946. Work completed, as reported
to the Treasury Department, was the basis for deterraining utilization under
the Liberian Agreement.
(d) Ship sales by the Maritime Commission—principal amount of mortgages received by the Commission from foreign purchasers. The Ship Sales
Act provides that vessels may be sold for 25 percent cash and the balance on
credit terms. In all sales where credit is involved, mortgages are received
when- the ships are delivered to the purchaser. In at least one case vessels
were delivered against funds put in escrow pending completion of credit
arrangements. In this case no credit was considered as utilized as of December 31, 1946.
Unutilized balances represent the unutilized balances as of June 30, 1945, plus
net authorization from July 1, 1945, to December 31, 1946, inclusive, less amounts
utilized from July 1, 1945, to December 31, 1946.
Repayments are confined to repayments on principal account. They are
exclusive of repayments on debts arising out of World War I and of write-offs
to profit and loss,.
Outstanding indebtedness is usually the net of utilization less repayments of
principal. The data in table E necessarily include the results of transactions,
taking place before July 1, 1945, but exclude indebtedness arising out of World
War I.
206
REPORT OF THE SECRETARY OF THE TREASURY
United Nations Relief and Rehabilitation Administration data
Data relating to UNRRA, as presented in table H, come from two sources.
The first three columns are based on material supplied by UNRRA. In this set
of data, the country and program figures are .based on the f. a. s. cost of the
merchandise to be distributed. The cost of shipping and field and administrative
expenses are shown in total only. The share of the United States in the total
program is approximately 72 percent.
The other set of data relating to UNRRA aid, shown in the last column of
table H, comes from the United States Government and represents the distribution of commodities and services purchased with funds supplied by the
Government of the United States. To the f. a. s. value of commodities shipped
to each country is added the estimated shipping cost. The contribution to administrative and other expenses and to free funds is shown separately.
TABLE A . — U. S . Government loans and credits available to foreign countries, July
1, 1945, to Dec. 31, 1946, by country and by lending agency
[In millions of dollarsl
N e t authorizations b e t w e e n J u l y 1,1945, a n d Dec. 3 , 1946 1
Unutilized
Foreign
balance 1
Total
xport- LiquidaLendas of J u n e E
Total
Import
tion
availOther
30,1945
lease
Bank
Commisable
sioner
Area a n d c o u n t r y
Africa:
. ^
EgyptEthiopia
Liberia
. _
U n i o n of S o u t h Africa
T o t a l , Africa
3.0
T o t a l , Asia
.....
Europe:
Austria
Belgium
Czechoslovakia
J _ _ . . _
Denmark.....
.....
Finland
France
Greece
Hungary.- __
_ . . . . \ Italy..-.
Netherlands
Norway
Poland
United Kingdom
. .
U n i o n of Soviet Socialist
ReDublics
Miscellaneous
Total, Europe
Footnotes'at end of table.
24.6
35.3
215. 7
247.6
8 2.8
43.1
.9
21.0
25.0
5.0
200. 0
30.8
27.0
20.0
40.9
43.1
.9
21.0
25.0
5.0
200.0
30.8
27.0
20.0
40.9
47.8
629.4
661.3
10.0
149.0
72.0
30.0
55.0
1, 950. 9
93.7
15.0
205.4
375.3
75.9
90.0
4,400,0
10.0
149.0
72.0
30.0
. 56.2
1, 950. 9
93.7
15.0
205.4
375. 3
75.9
90.0
4,435. 0
241.6
50.0
24L9
50.0
7,813. 8
7,850.3
4 2.0
10.7
Asia:
China
^
India
_
Iran
Iraq.—
.-. . .
Japan _
Korea (South)
LebanonNetherlands Indies
...
Philippine Republic
-. Saudi Arabia
Siam
Turkey
__
-.-•
2 11.8
4.0
17.5
2.0
6.8
.
. .
211.8
4.0
6.8
2.0
211.8
1.0
3 10.7
31.9
3.0
L2
6.8.
5 66. 8
270.0
58.9
8.5
fi 100. 0
28.1
2 4 34.6
.9
2 4 21.0
25.0
5.0
100.0
5.8
•2.0
4 20.0
10.0
219.9,
294.3
67.4
25.0
3L9
14.8
100. 0
22.0
20.0
40.0
1, 200. 0
25.0
25.0
10 280. 3
6 50.0
40.0
735.0
10.0
2 49. 0
"8 50.0
4 10.0
15.0
300.0
45.0
15.0
160.0
430.0
10.0
50.0
60.0
6 20.0
7 25.0
420.0
8 30.9
8 23. 7
8 20.4
65.0
8 15.9
590. 0 11 3, 750. 0
241.6
'. 3
50.0
36.5
1.852. 3
804.0
1, 316. 6
3.840. 9
207
REPORT OF THE SECRETARY OF THE TREASURY
TABLE A,— U. S. Government loans and credits available to foreign countries, July
1, 1945, to Dec. 31, 1946, by country and by lending agency—^Continued
[lp millions of dollarsl
...
N e t authorizations b e t w e e n J u l y 1,1945, a n d D e c , 31, 1946 •
Unutilized
balance 1
as of J u n e E x p o r t Impoi-t
30, 1945
Bank
Area a n d c o u n t r y
L a t i n America:
Argentina
Bolivia 12
Brazil 12
Chile 12
..:
Colombia ' 2 . . . .
Costa Rica'2.
C u b a 12
D o m i n i c a n R e p u b l i c '2
E c u a d o r 12..
E l Salvador 12
G u a t e m a l a 12
'
H a i t i 12
Honduras
Mexico 12
.
N i c a r a g u a 12
Panama
P a r a g u a y 12
P e r u 12.
U r u g u a y 12
Venezuela 12
M iscellaneous
1310. 3
.6
.4
.1
13 74.8
Other
Total
.2
15.5
79.5
60.6
27.8
.1
17.8
1.8
1.8
12.1
.6
7.0
7.0
•2
7 8 l-l. 4
4 12.0
,8
.1
.1
15.1
on
15.5
134.8
380.3
5.7
5.7
55.7
:.
T o t a l , Oceania
Varions conn trips . . . "
6.5
5.5
.5
7.0
5 5
7.0
5.5
12.0
5
12 5
50
12. 5
5.0
8,625 8
8,950.4
5.0
_ 1314 324. 6 5 2,190.1
,1
.8
4.6
8.0
1.5
25.0
4.2
.7
L5
.7
4 1. 5
104.2
.4
.1
81.8
8 4.1
13 25. 0
1314 245. 5
Total
available
67.6
• 47.4
4.3
6 44. 2
M7.4
3.5
.1
.8
13.4
7.3
T o t a l , L a t i n America
T o t a l , all a r e a s ,
Lendlease
6.2
15.5
13 11.9
13.2
23.5
.1
17.8
N o r t h America: C a n a d a
Oceania:
Australia..
N e w Zealand
Foreign
Liquidation
Commissioner
4 1,140. 2
1,391. 3.
3, 904. 2
I Cancellations and expirations through Dec. 31,1946, are excluded. See Explanatory Notes for definition
of terms. The column "Unutilized balance as of June 30,1945" relates to Export-Import Bank balances
unless indicated otherwise by a footnote.
' 2 Estimated.
3 Lend-lease contract.
4 Included in these data are credits authorized in principle but not yet signed as of Dec. 31,1946, amounting
in millions of dollars to: Total, 73.7; Brazil, 4.0; Denmark, 10.0; Iran, 30.2; Japan, 6,0; Netherlands, 100;
Siam, 10.0; Union of South Africa, 2.0; and Venezuela, 1.5,
3 Included in these data are loans authorized by the Board but which had not been formalized by credit
agreements, as of Dec. 31,1946, amounting in millions of dollars to: Total, 181.4; Argentina, 0.2; Brazil, 6,1;
Chile, 10.4; Ecuador, 1.0; Mexico, 3.8; China, 4.2; Netherlands Indies, 100.0; Canada, 5,7; and Norway, 50,0.
8 Based on a sale of surplus property by the War Department. Amount estimated,
7 Reconstruction Finance Corporation is the lending agency.
8 Maritime Commission is the lending agency.
9 Sales under $40,700,000 unexpended balance of credit suspended Sept. 13,1946,
10 Of this amount approximately $80,000,000 may be advanced by private participants.
II Treasury Department is the agency administering the loan.
12 Lend-lease mutual-aid agreements have been signed with these countries. Data with respect to them
are shown in- Latin Ariierican and all areas totals only. The Latin American lend-lease was authorized
before June 30, 1945, and the bulk of it was delivered prior to that date. For that reason it was treated as
utilized before June 30,1945, to the extent that bills had been prCvSented to foreign governments as of Dec.
31,1946.
13 Included in these data are loans authorized by the Board of the Export-Import BankTjut which had not
been formalized by credit agreements as of June 30, 1945, amounting in millions of dollarslto: Total, 66.8;
Brazil, 2,5; Ecuador, 8.0; Mexico, 30.8; Peru, 0.5; miscellaneous Latin America, 25.0.
**! ~
14 Unutilized portions of Latin American lend-lease as of June 30,1945, included only in the Latin America
and all areas totals, amounted'to $43,800,000.
208
REPORT OF THE SECRETARY OF THE TREASURY
TABLE B . — U. S. Government loans and credits utilized ^ by foreign countrries from
July 1,1945, to Dec. 31,1946, by country and by lending agency
[In millions of dollarsl
ExportImport
Bank
Area a n d c o u n t r y
Africa:
' EevDt
Ethiopia
Liberia.- .
T o t a l , Africa
Asia:
China
Iran
Iraq
Japan
• Korea (South)
Lebanon..
Netherlands Indies
Philippine Republic
Saudi Arabia
• Siam
Turkey
T o t a l , Asia
.
Foreign
. Liquidation C o m missioner
Lendlease
Other
6.4
11.8
,4
6.4
12.2
6.4
18.6
66.0
4.2
,9
L4
6.1
2.5
68.3
5.8
L5
4.6
3.2
164.5
35.5
8.5
2 20.0
44.0
20.0
1L8
.4
44.1
_
_
5.0
49.1
Europe:
Austria
.
Belgium
Czechoslovakia
_
D enma rk
Finland-.
. . - - .
France
Greece
- - .
Hungary
Italy
-J
-.
Netherlands
- _ - • Norway-Poland
Spain
Sweden.
_.United KingdomU n i o n of Soviet Socialist R(3publlcs
Total, EuropeL a t i n America:
Bolivia 7
Brazil 7
_._
Chile 7
Colombia 7 . . .
Costa .Rica 7
Cuba 7
Dominican Republic 7
Ecuador 7
E l Salvador 7
Guatemala 7
Haiti 7
. .
Honduras 7
_
Mexico 7
N i c a r a g u a 7.... _•
^
Paraguay 7
Peru 7
Uruguay 7
_
Venezuela 7
Total, Latin America
Oceania:
Australia
N e w Zealand . - _ .
T o t a l , Oceania.
1
T o t a l , all countries
100.0
14.1
15.0
36.9
626. 0
3.4
14.6
115.3
6.4
. 931. 7
5.7
20.1
11.1
10.9
.1
10.5
:
_
Total
L9
349.0
9.3
14.9
300.0
23.8
14. 7
160.0
12.8
L9
30.4
420.0
4 15.4
49.3
43.7
43.7
60.0
590.0
137.0
s 600.0
678.7
1,190. 7
628.4
8.0
.62.0
.
165.6
12.7
.9
1.4
6.1
2.5
68.3
5.8
6.5
4.6
3.2
277.6
1.9
149.0
23.4
15.0
• 51.8
1,361.4
36.5
14.7
178.3
171.8
1.9
36.8
1,250. 0
137.0
3,429. 5
5.7
30.1
11.1
10.9
.1
10.5
L7
,6
1.7
.6
.4
.1
39.5
.4
.1
39.5
,8
.4
3.6
.5
105.5
8.5
1, 086. 3
5:9
4.7
10.6
874. 5
. . . . _
,8
,4
4,1
(0
2.0
6.4
4.7
11.1
,5
.5
1, 241. 6
116.0
650.4
3. 852.8
1 See Explanatory Notes for definition of terms.
2 Based on a sale of surplus property by the "War Department. Amount estimated.
3 A bulk sale which included goods delivered prior to Oct. 1,1946, and the estimated amount expected to
be realized by the United States from the sale of other surplus property (50 percent of net proceeds), less
Belgian claims against the United States.
. 4 Maritime Commission is the lending agency.
6 Treasury Department is the agency administering the loan.
* Reconstruction Finance Corporation is the lending agency.
7 Lend-lease mutual aid agreements have been signed with these countries. The aid rendered has been
considered as utilized before June 30,1945, to the extent that bills were rendered to foreign governments as
of D6c. 31,1946. Unbilled portions of the authorized amounts are treated as unutilized.
REPORT OF THE SECRETARY OF THE TREASURY
209
TABLE C,—Balances of U S. Government loans and credits unutilized ^ as of Dec. 31,
1946, hy country and hy lending agency
[In millions of dollarsl
ExportImport
Bank
Area a n d c o u n t r y
Africa:
Ethiopia
Liberia
U n i o n of S o u t h Africa
Lendlease
Other
Total
0.6
3.0
---
-.
ILO
3.6
11 0
2 0
2 2.0
3.0
2.6
n.o
16.6
354.6
4.0
2 .30.4
2 19.6
18.9
"2.5
31.7
23.4
6 2.8
82 0
30.4
19.6
18.9
2.5
131.7
25.0
20.5
15.4
37.7
27. 8
383.7
T o t a l , Africa
Asia:
China
.Iran
Japan
--..
.
Korea (South)..
Lebanon
-Netherlands Indies
Philippine Republic
Saudi Arabia
Slam
Turkey
Foreign
Liquidation C o m missioner
•
. .
.3 100.0
-
4 25.0
28.1
.5
2 15.4
6.8
202.7
129.8
__.
20.0
--
T o t a l , Asia
:
Europe:
Austria
Czechoslovakia._.
Denrnark---- _
Finland
France----Greece
Hungary
..
.__
,
Italy
Netherlands.
_
Norway
._._
Poland
United Kingdom
.
U n i o n of Soviet Socialist R e p u b l i c s
Miscellaneous
Total, Europe.--
_
L a t i n America:
Argentina
-.
Bolivia 8
_._.
Brazil 8
Chile 8
Colombla8..Costa R i c a 8
Cubas
Dominican Republic 8
Ecuador 8
E l Salvador s
_
G u a t e m a l a 8.
Haiti 8.-...-.Honduras 8
_
Mexico 8.__
Nicaragua 8
Panama
- Paraguay 8
Peru8--_
Uruguay
Venezuela 8
Miscellaneous
Total, L a t i n America
N o r t h America: C a n a d a
Total, N o r t h America
Footnotes at end of table.
.
23.4
8.1
6 40.7
2 10.0
.1
7.9
5.0
4.3
574.0
2L6
6 15.5
6 14.4
2L2
.3
10.4
165.0
350.0
33.6
6 16.7
2 17.2
8.1
19.6
2L3
5 15.9
'
104.5
7 3,185. 0
4.3
125.8
.3, 247. 8
4,420. 7
6 9.4
.2
9.8
49.4
49.5
16.8
50.0
92L8
125.3
3.2
9.83 36. 0
3 49. 5
16.0
24.0
.
.8
(0)
(8)
_
7.3
7.3
3 10.4
10.4
___
_.
___
._
.^...
8.1
48.6
15.0
4.4
589.5
57 2
.3
27.1
203 5
74.0
53 2
3,185.0
104.8
50.0
342.3
.1
3.7
25.0
200.3
35.7
5.7
.
.
42.3
.1
,1
6 4.1
4 2
3.9
1.5
25.0
13.'5
264.2
.2
2 1.5
0
6.6
1043.8
5 7
' 5 7
210
REPORT OF THE SECRETARY OF THE TREASURY
TABLE C.—Balances of U. S. Government loans and credits unutilized ^ as of Dec. Sl,
1946, by country and hy lending agency—Continued
[In millions of dollars]
ExportImport
Bank
Area a n d c o u n t r y
Oceania:
A ustralla
N e w Zealand
T o t a l Oceania
Various countries
T o t a l , all areas
Foreign
Liquidation Commissioner
Lendlease
Other
0.6
.8
1
....'
0.6
.6
L4
1.4
5.0
31,338. 5
Total
5.0
.
2 265.7
204.0
3,289.1
5,097.3
1 See Explanatory Notes for definition of terms.
"
.
2 Included in these data are credits authorized in principle but not yet signed as of Dec. 31,1946, amounting in millions of dollars to: Total, 73.7; Brazil, 4.0; Denmark, 10.0; Iran, 30.2; Japan, 6.0; Netherlands, 10.0;
Siam, 10.0; Union of South Africa, 2.0; and Venezuela, 1.5.
3 Included in these data are loans authorized by the Board but which had not been formalized by credit
agreements as of Dec. 31, 1946, amounting in niillions of dollars to: Total, 191.9; Argentina, 0.2; Brazil, 8.6;
Chile, 10.4; Ecuador, 9.0; Mexico, 3.8; China, 4.2; Netherlands Indies, 100.0; Canada, 5.7; and Norway, 50,0,
4 Reconstruction Fuiance Corporation Is the lending agency.
6 Maritime Commission is the lending agency,
6 Sales under this unutilized balance suspended Sept. 13,1946,
7 The Reconstruction Finance Corporation and the Treasury Department are the agencies administering
these loans.
8 Lend-lease mutual-aid agreements have been signed with these countries. Data with respect to them
are shown in the Latin American and all areas totals only. Those portions of the authorized amount
unbilled as of Dec. 31,1946, are treated as unutilized.
,
•9 Less than $50,000.
10 Total unbilled portion of authorized amounts for Latin America under the mutual aid agreements.
See Explanatory Notes.
211
REPORT OF THE SECRETARY OF THE TREASURY
TABLE D.—Repayments ^ on U. S. Government loans and credits from July 1, 1945,
to Dec. 31, 1946, hy country and hy lending agency
[In millions of dollars]
ExportImport
Bank
Area and country
Africa: Ethiopia
Other
• Total
0,3
Total, Africa
Asia:
Bahrein Islands
China.
Iran.l
_.
Lend-lease
.3
23.8
Total, Asia
23.8
Total, Europe
,__
___
_
_.
_
_
._
Latin America:
Bolivia 3
Brazll3
_
_
British Honduras
.
Chiles.
1..
Colombia 3
CostaRica..
Cuba 3
Dominican Republic 3
Ecuador 3
_
El Salvador 3
_ _
Haiti 3
Honduras 3...
Mexico 3
Nicaragua 3
• Par agua V 3.
Peru 3-_
._
Uruguay 3
.__
Venezuela 3-- .
._
Total, Latin America
i
_
_
1,4
1.4
1.8
4.8
LO
L4
L3
9.0
L3
.:..
__
........
. (*)
57.9
57.9
68.2
2.2
2L0
•
3 7.3
10.1
6.8
2.4
.1
.7
.7
.3
.1
1.2
.2
6.3
,6
6
(4)
.1
1,4
1.3
2.2
58.9
.2
6,4
(*)
.1
.1
1.4
25.8
1.8
4.8
1.0
2.7
2 57.9
0)
6.8
2.4
.1
,7
,7
.3
.1
L2
,2
6.2
.6
,6
28.2
3.0
5.4
._
3.0
23.8
1.4
North America: Newfoundland
Total, all areas.^...
.3
2 3.0
_
. . ' . . . . . '
Europe:
Belgium
.
France
_.
Italy...
Netherlands...
United Kingdom
0.3
•
62.4
34.4
2.2
6 131.3
1 Payments on principal account only. Payments made between July 1, 1945, and Dec. 31, 1946, were
included even if they related to loans authorized or utilized at an earlier date.
2 Reconstruction Finance Corporation is the lending agency.
3 Lend-lease mutual aid agreements have been signed with these countries. Data with respect to them
are shown in totals only,
t
4 Less than $50,000.
6 Amount docs not include small repayments received by the Office of Foreign Liquidation Commissioner
through Dec. 31,1946, for which-detailed data are not yet available in Washington, D. C,
764788—48-
-15
212
REPORT OF THE SECRETARY- OF THE TREASURY
•TABLE IE,.-^Outstanding indebtedness^ of foreign countries on loans and.'credits hy
the U. S. Government as of June SO, 1945, and Dec. 31, 1946, hy country and hy
lending agency
[In millions of dollars]
Outstanding June 30,
1945 1
Area and country
Foreign
Export- .LiquidaImport tion ComBank missioner
Total
Africa:
Egypt
Ethiopia
Liberia
Total, Africa
Total, Asia
....--. . .
.-_
:.
. .. . _
...
Finland
France.
.°.
Greece
Hungary _
„..
Italy
' Netherlands
Norway
.._.•
* Poland
_
--.
United Kingdom..;
Union of Soviet Socialist Republics..
Total, Europe
Latin America:
Bolivia 8
Brazil 8
British Honduras _
...
• Chile 8
Colombia 8 . • • _
Costa Rica 8._..
Cuba 8
Dominican Republic 8
Ecuador 8
El Salvador 8
Guatemala 8
Haiti 8
TTnndnrflS 8
Mexico 8
Nlcarasfua 8
Paraguay 8
Peru 8
Uruguay 8
Venezuela 8
Total, Latin America
Footnote at end of table.
.
69.4
5.0
65.2
Europe: ,
Austria
Belgium
Czechoslovakia
23.9
74.4
98.2
14.1
15.0
60:8
621.2
3.4
13.6
113,9
3.3
3 271. 9
Other
8.2
1L8
.4
8.2
12.2
8.2
20.4
66.0
4.2
.9
1.4
6.1
2.5
,68.3
5.8
1.5
4.6
3.2
35.5
7.1
164.5
42.6
9.7
3 13.2
4 20.0
13.2
190.9
11.3
.9
1.4
6.1
2.5
68.3
5.8
6.5
4.6
3.2
33.2
314.7
7 814. 0
L9
147.2
23.4
15.0
75.7
1,356. 6
36.5
14.7
177.3
169.1
L9
•.40.'I
1,464.0
842.4
3, 660.4
'•391.0
3L0
8.4
9 6.7
87.2
.4
.18.0
18,9
6.8
12.6
L9
6.3
L3
1.9
5 49.0
9.3
14.9
300.0
23.8
14.7
160.0
12.8
1.9
- 30. 4
60.0
420.0
6 15.4
6 9.3
63.7
42.4
590.0
137.0
137.0
299.1
949.9
8 2.1
10 63.5
3,5
13.6
10.4
6.9
2.7
2.6
11 5.0
6. 7.
10 78.^2
,9
8.5
.8
12 n . o
3.1
678.7
1,189. 4
8.0
18.0
18.9
6.8
12.6
1.9
6.3
L3
7.1
3.1
7.7
.7
45.3
2.5
5.1
,4
10.6
L7
16199. 6
223.7
4.9
Total
.4
2.1
3 16.1
49.1
Lendlease
1L8
0.3
2 1.8
Asia:
Bahrein Islands .
China.---.
Iran
Iraq
__ -.
Japan
...:
Korea (South)
_ J
Lebanon
.Netherlands Indies
Philippine Republic
SaudiArabia
Slam
Turkey .
. .
Denmark-.
Outstanding Dec . 31, 1946
3.1
7.7
•
13. i
(H)
.6
8.5
8 45.5
8 2.4
. 7
45.3
2.5
5.1
.4
11.1
1.7
e 280.1
REPORT OF THE SECRETARY OF THE TREASURY
213
TABLE E.—Outstanding indebtedness ^ of foreign countries on loans and credits
by the U. S.' Goyernment as of June SO, 1945, and,Dec. 31, 1946, by country and
. hy lending agency—Continued
[In millions of dollars]
Outstanding June 30,
1945 1
Area and country .
Total
North America:
Canada
Newfoundland
.,^
...
Total, North America-
Outstanding Dec, 31, 1946
Foreign
Export- LiquidaImport tion ComBank missioner
Total, Oceania
Other
Total
35.0
3L7
35.0
3L5
5 0
1.5
6.7
6.5
6.5
Oceania:
Australia
New Zealand.._!
5.9
4.7
--
Total, all areas
Lendlease
10.6
16 572. 7
1. 248.0
16 874. 5
0.5
.5
1,286. 2
6.4
4.7
11.1
fl 884. 5 e 16 4,293. 2
1 See Explanatory Notes for definition of terms. The column "Outstandmg, June 30,1945," Is Included to
• show readily.the net change in Indebtedness that has taken place as a result of postwar lenduig operations.
The items in this column which are not specifically identified by footnotes relate to Export-Import Bank
credits.
.
2 Lend-lease credit.
'
3 Reconstruction Finance Corporation is the lending agency.
4 Based on a sale of surplus property by the War Department. Amount is estimated.
8 The estimated net proceeds of a bulk sale. The exact amount will depend on the amount realized by
Belgium from the sale of the surplus property,
6 Maritime Commission Is the lending agency.
7 Of the $814,000,000 indebtedness, $600,000,000 was incurred under the loan administered by the Treasury
Department and $214,000,000 under a loan by Reconstruction Finance Corporation.
8 Lend-lease mutual aid agreements have been signed with these countries. Data with respect to them
are shown in totals only.
'flDoes not include $900,000 of a loan to a private borrower in Bolivia written off to profit and loss.
10 Includes $7,000,000 participation by another agency.
.•
• ;
11 Of the $5,000,000 indebtedness, approximately $100,000 was incurred under a loan by Reconstruction
Finance Corporation and $4,900,000 under credits by the Export-Import Bank. .
12 Of the $11,000,000 .indebtedness, approximately $100,000 was Incurred under a loan by the Office of
' Inter-American Affairs and $10,900,000 under credits by the Export-Import Bank.
13 Office of Inter-American Afi'airs is the lending agency.
14 Less than $50,000.
15 As of.June 30, 1945, outstanding indebtedness incurred under Latin-American lend-lease accounts and
included In this total was $52,800,000.
16 Amounti does not reflect small payments.received through Dec. 31,1946, for which detailed data are not
yet available in Washington, D. C,
214
REPORT OF T H E SECRETARY OF T H E TREASURY •
TABLE F.—Other postwar aid furnished hy the U. S. Government for use in foreign
^
countries, as of Dec. 31, 1946, hy country and by type
[In millions of dollars]
Civilian
supplies 1
Area and country
Africa: Egypt
Lendlease 2
--
0.1
Total, Africa
.1
Asia:.
China...
Japan
Japanese Pacific islands
Korea (South)..,
Netherlands Indies
Philippine Republic
Saudi Arabia
.
.
. . .
.
71L7
.
-
.
-..
---
_
_.
. '..
258.4
•6 215.6
180.6
.
.
3 115.9
2.5
714. 2
54.6
--
Total, Europe .
Total, all areas
188.1
24.9
• 22.0
4.1
28.3
267. 4
Total, Asia
Europe: o
Austria
Czechoslovakia
Germany
Greece
..
Italy
.
Norway .Poland...
Yugoslavia
Unspecified
Other
.2
• 5.9
(«)
115.9
c. 4 28.7
6.7
.1
. 709. 2
n.9
28.7
976.6
726.2
144.6
1 Supplies distributed for the prevention of disease and unrest by the War and Navy Departments In
areas occupied by the armed forces. These data cover the period from July 1, 1945, through Dec. 31, 1946.
Terms were still subject to settlement as of Dec. 31, 1946.
2 Aid rendered during the period from Sept. 2,1945, through Dec. 31,1946, and not included in war settlements during that period. Small additional amounts of lend-lease aid, not as yet recorded, may have been •
rendered to some countires. Terms were still subject to settlement as of Dec. 31,1946.
3 Value of raw cotton (including freight and insurance costs) owned by the Commodity Credit Corporation and, through an arrangement with the United States Commercial Company, shipped under the supervision and control of military authorities in J^pan for manufacture into cotton textiles. Payments for the
raw cotton and all other expenses In connection with the program are made from proceeds of sale of the
textiles..
4 Includes $20,900,000 of raw cotton'(Including freight and msurance costs) for use In Germany under an
arrangement similar to that described in footnote 3 for Japan; also $7,800,000 approved under an agreement between the United States Commercial Company and the Office of Military Government for Germany
(United States) for financing the procurement of raw materials needed to develop 5 specific export programs in the combined British and American zones of occupation. No part of the $7,800,000 had been
utilized as of Dec. 31, 1946; repayment of amounts utihzed will be made from 50 percent of the proceeds of
exports under these programs.
6 Includes supplies provided out of funds other than those of the War and Navy Departments.
6 Less than $50,000.
REPORT OF THE SECEETARY OF THE TREASURY
215
TABLE G . — U. S. Government foreigri financial aid agreements,^ July 1, 1945, to
Dec. 31, 1946, by country
[In millions of dollars]
Unutilized
balance, J u n e
30, 1945
Area a n d c o u n t r y
Asia:
China
Philippine Republic
119.6
-•
-
.-
._ - . .
_
. .
T o t a l , L a t i n America
T o t a l , all areas
1...
Utilization 2
J u l y 1, 1945D e c . 31, 1946
620.0
119.6
100.0
520.0
620. 0
219.6
520.0
.1
.1
.8
1.4
2.3
.6
.6
,2
.6
,4
.7
.1
3,1
.1
119. 6
-
T o t a l , Asia
Latin America:
Argentina
-Bohvia
Brazil
.
Chile
Colombia
Costa Rica
Dominican Republic
Ecuador
Guatemala
-_
Haiti
Honduras
Mexico
Nicaragua
Panama
Paraguay
.
. .
Peru
E l Salvador . .
Uruguay..
Venezuela
N e t authorizations, J u l y 1,
1945-Dec. 31,
1946
1.4
3.8
4.0
.8
.9
.5
1.0
1.0
.8
.3
5.6
.2
.1
Ll
LO
,5
.4
L2
.2
,2
.1
.3
.6
.3
,2
.4
.2
,6
.6
,3
.4
.8
Unutilized
balance, D e c .
31, 1946
.6
2.4
1.7
.4
.5
.3
.5
.9
.7
.2
2.8
.1
.1
.7
.8
.2
.2
.4
24. 6
2.6
13.7
13.5
144.2
622.6
233. 3
533.5
1 Includes (a) the unutilized balance as of June 30, 1945, of the $500,000,000 aid to China under the 1942
' agreement—terms of the entire $500,000,000 still subject to settlement as of Mar. 31, 1947; ib) the authorizations in the Philippme Rehabilitation Act of $40u,000,000 to settle claims for war damage, $120,000,000 for
restitution of public property, and $100,000,000 of surplus property to be turned over to the Philippine
Government—no repayment Involved; and (c) the grants-in-aid by the Office of Inter-American Affairs to
Latin-American countries—no repayment Involved.
2 Equivalent to disbursement of the funds made available.
216
REPORT OF THE SECRETARY OF THE TREASURY
TABLE H.—Assistance to foreign countries throu'gh the United Nations Relief and
Rehabilitation Administration, hy country
[In millions of dollars]
Countries:
Albania
1
Austria
Byelorussian S. S. R
China
.
Czechoslovakia
Dodecanese Islands
Ethiopia
_
Finland
Greece.Hungary
Italy
Korea
_.-•_
Philippine Republic--.
• Poland
San Marino
U k r a i n i a n S. S. R
Yugoslavia.Unclassified areas
_
:-.—.
18.3
101. 5
48.8
294.5
232.3
4.0
.2
2.3
329.1
3.2
318.2
5.3
401.9
8.9
34.6
11.9
235.1
31.8
.1
.5
.2
21.4
1.3
102.5
1.0
5.0
79.4
188.1
420.6
8 39.1
155.3
362.6
33.7
32.8
58.0
6.4
4 139.2
257.3
81.4
2, 941.1
782.2
2, 311. 2
629.9
1, 669.4
7 214. 9
27.2
136.1
60.7
529.6
264.1
4.1
.7
2.5
350.5
4.5
420. 7
1.0
' 10.3
481.3
(3)
(3)
-.
Total, countries--_
S h i p p i n g , mission a n d a d m i n i s t r a t i v e expenses.
T o t a l , all i t e m s . —
B a l a n c e of
progi'am
asof
D e c . 31,
1946
T o t a l program 1
Item
3, 723. 3
-^
Goods,
services,
a n d funds
provided
UNRRA
b y U , S.
Government 2
through
Dec. 31,1946
Shipments
a n d disbursem e n t s to
D e c . 31,
1946
(6)
(«)
(«)
(«)
15.8
34.7
184.2
150.4
1.3
(3)
1.2
243.2
1.3
265.4
.1
6.1
287,8
81,884.3
1 T h e s e d a t a r e p r e s e n t t h e t o t a l p r o g r a m of U N R R A , a small p a r t of w h i c h w a s completed before J u l y 1,
1945. T h e c o n t r i b u t i o n of t h e G o v e r n m e n t of t h e U n i t e d States comprised a b o u t 72 p e r c e n t of t h e t o t a l
c o n t r i b u t e d b y all.
2 Based on d a t a supplied to t h e Clearing Office for Foreign T r a n s a c t i o n s a n d R e p o r t s . T h e s e c o u n t r y
d a t a include a n e s t i m a t e of t h e ocean t r a n s p o r t a t i o n charges. (See also footnote 6.) . A small p a r t of t h i s
total h a d b e e n utilized before J u l y 1,1945.
3 Less t h a n $50,000.
4 I n c l u d e s Byelorussian Soviet Socialist R e p u b l i c .
8 Includes countries in which t h e U N R R A special projects a n d displaced-persons c a m p s o p e r a t e d ; also,
i n t h e last c o l u m n , countries of initial d e s t i n a t i o n from w h i c h goods m a y h a v e b e e n t r a n s s h i p p e d , w i t h or
w i t h o u t processing, or to w h i c h goods m a y h a v e b e e n delivered as r e p a y m e n t for stocks p r e v i o u s l y received
by U N R R A .
6 N o t available.
7 U n i t e d States c o n t r i b u t i o n to a d m i n i s t r a t i v e expenses a n d free f u n d s .
8 T h e total c o n t r i b u t i o n of t h e U . S. G o v e r n m e n t a m o u n t e d to $2,700,000,000, of w h i c h $816,000,000 w a s
as y e t u n u t i l i z e d as of D e c , 31,1946, according to G o v e r n m e h t fiscal records.
Exhibit 30
Announcement, May 13, 1947, of the execution of a stabilization
between the United States and Mexico
agreement
The Secretary of the Treasury of the United States of America, Mr. John W.
Snyder, the Ambassador of Mexico, Senor Dr. Don Antonio Espinosa de los
Monteros, and Mr. Rodrigo Gomez, representing the Banco de Mexico, today
executed a new $50 million stabilization agreement between the two countries.
Under the terms of this agreement, which was the subject of discussion during^
the recent visit to the United States of President Aleman and Minister of Finance"
Beteta, the United States Stabilization Fund undertakes for a period of four
years commencing July 1, 1947, to purchase Mexican pesos to an amount equivalent to $50 milhon for the purpose of stabilizing the United States dollar-Mexican
peso rate of exchange.
REPORT OF THE SECRETARY OF THE TREASURY
217
This agreement extends and enlarges the Stabilization Agreement of 1.941
which was twice extended for two-year periods and which expires on June 30, 1947.
Secretary Snyder and Minister Beteta during their discussions reviewed the
satisfactory foreign exchange relations between Mexico and. the United States
and the stability which has characterized the peso-dollar exchange rate during the
six years that the stabilization agreement has b.een in effect. They also viewed
with satisfaction the complete freedom of.exchange operations between the two
countries—operations which have involved the financing of aggregate foreign
trade exceeding $700 million in ,1946, as well as large travel expenditures and
other international receipts and payments.
.
.
The Secretary, and .the Finance Minister pointed out that the stabilization
agreement is consistent with the aims and purposes of the International Monetary
Fund, of which both countries are inembers, and will in fact serve to supplement
the efforts of the international organization to stabilize the rates of exchange
between all the member countries.
Exhibit 31
Joint statement, July 18, 1947, by the Secretary of the Treasury and the Board
of Governors of the Federal Reserve System relative to foreign speculative
markets in gold
/
'
The Secretary of the Treasury, John W. Snyder, and the Board of Governors
of the Federal Reserve System today issued the following joint statement:
" I t is well linown that active speculative marl^ets in gold exist in various
foreign countries. For the most part, these marl^ets are illegal, though in a few
instances importation or sale of gold is legal or is tolerated. Under present
circumstances gold is traded in many foreign centers, often against U. S, dollars,
at prices above monetary parities. The premiums differ from one center to
another, so that speculators can make large profits by purchasing gold in one
foreign market and selling it in another.
''The International Monetary Fund recently issued a statement deprecating
international dealings in gold at premium prices, and requesting metnber countries to take such action as they can within their jurisdictions to prevent such
dealings. The Fund emphasized that these transactions tend to undermine
exchan'ge stability and cause gold to flow into private hoards rather-than into
monetary reserves. Furthermore, in countries where the gold is sold, payment is
often made with dollars illegally acquired or held. Moreover, foreign exchange
which otherwise could be used for sorely needed imports is diverted to the purchase of gold for private hoards,
'
"In view of these circumstances, and on general grounds of the national policy,
the Treasury Department and the Board of Governors of the Federal Reserve
System request American individuals, banks, and business enterprises to refrain
from encouraging arid facilitating this traflSc and in particular to refrain from
extending the use of their facilities and funds for the carrying out of such transactions.'*
TAXATION DEVELOPMENTS
Exhibit 32
>
Statement of Secretary Snyder before the House Ways and ]\Ieans Committee,
March 13, 1947, on H. R. 1, a bill to reduce individual income tax payments
I am glad to have this opportunity to appear before the Ways and Means Committee to discuss the important issues raised by proposals for tax reduction.
This is the second time the Congress has given corisideration to proposals for
major tax reduction since the end of the War. ' The first step to reduce wartime
taxes was taken in the Revenue Act of 1945. That act made major reductions in
both corporate taxes and individual income taxes and a niinor reduction in excise
taxes. As a matter of fact, gentlemen, at estimated 1947 levels of business conditions that reduction amounts to about $9,0 bilhon of revenue. That first tax
reduction had as its purpose the easing of the transition from a wartime to a
peacetime economy. The transition was made with less decline in business'
218
REPORT OF THE SECRETARY OF THE TREASURY
activity than was expected. The present proposals are being considered against
a different and more favorable economic background than the first tax reduction.
Today the economic situation is good. We can look back on economic developments of 1946 with considerable satisfaction. In 1946 civilian employment
was at an all-time high. By the end of 1946 more than 10 million demobilized
veterans had found civilian jobs. Total production also reached new peacetime
highs. For the year as a whole production was 50 percent above 1939 and only
15 percent below the wartime peak. Although there were still shortages in some
lines, the American people were supplied with more goods and services than ever
before.
I believe we can look forward in 1947 with confidence. It should be a year
that will demonstrate once again the vitality of the American, system of free
enterprise. Great technical advances were achieved during the war. Many of
these will be directly applicable to peacetime production. As we complete the
transition from wartime production these improvements, will to an increasing
extent make their impact and contribute to raising still higher the American
standard of living. We hold in our own hands the determination of how rapidly
this advance will take place. It will depend to an important extent upon the
pursuit of a sound Government financial policy.
Under the existing high national income, taxes at present levels can be paid
with less hardship and less effect on business than would be possible under less
favorable circumstances. High production was achieved in 1946 with present tax
rates. I believe that we can go ahead in 1947 with the same general tax rates
without any decrease in production.
Under present economic conditions, it is sound policy to achieve a substantial
budget surplus, and to apply that surplus to reduction of the public debt. In
the budget, net. receipts for the fiscal year ending June 30, 1948, were estimated
at $37.7 billion. The Congress has already approved an extension of the so-called
war excise tax rates, which will increase net receipts by $1.1 billion, to a totalof
$38.8 billion for the fiscal year 1948, The President's budget estimates expenditures for the fiscal year 1948 at $37,5 billion. A conference committee of the House
and Senate is considering legislative budget estimates of expenditures ranging
from $31,5 billion to $33.0 billion. It is too early to know whether or not expenditures during the fiscal year 1948 will actually fall below the original budget
figure of $37,5 billion. Once taxes are reduced it would not be easy to reverse
the action taken and restore them.
It would appear sounder to await more definite evidence on budgetary developments for the fiscal year 1948 before proceeding with consideration of tax cuts.
I feel reasonably certain that such surplus as is likely to be realized will not
exceed what will generally be regarded as a proper installment of reduction in
the public debt.
The public debt now stands at' about $260 billion. This is approximately
$20 billion less than the peak reached about a year ago. The reduction thus
far has been made by drawing down the Treasury cash balance from a high war
level to a peacetime level, but further reductions can be achieved only out of a
surplus of receipts over expenditures.
Interest charges on the debt have been kept at a minimum by a judicious
policy of financing at low interest rates. Borid prices have been held stable.
This policy keeps down the burden on tlie taxpayer and inspires business confidence.
When natiorial income is high, as it now is, the public debt should be reduced.
We now have an opportunity to demonstrai^e our determination to pay off the
debt. I believe that we should begin a program of debt retirement with the
largest feasible reduction. We should take full advantage of our present opportunities. It may be that in the future there will be years when it will be unwise
°to try to retire any part of the debt. If, however, we reduce the debt as rapidly
as we can in good years, there will be less cause for concern if we have to omit
debt retirement in some future year.
Although I do not believe that= tax reduction is appropriate at this time, I am
sure that basic tax revisions, involving substantial reductions of present taxes,
will be possible at a later time. The extent and nature of these tax revisions
will depend on budgetary and economic developments. At the present time it
is impossible to foresee what the requirements of peacetime public expenditures
will be. Future defense expenditures, in particular, will depend on how safely
• we establish the peace.
REPORT OF THE SECRETARY OF THE TREASURY
219
It is important, however, to keep in mind certain essential requirements of a
sound tax system, so that any immediate action will not prejudice desirable
long-run revisions. The tax system should produce adequate revenue. It
should be equitable in its treatment of different groups. It should interfere as
little as possible with incentives to work and to invest. It should help maintain
the broad consumer markets that are essential for high-level production and
employment. Taxes should be as simple to administer and as easy to comply
with as possible.
These principles should govern the development of the postwar tax system in
America. In line with these principles, the Treasury has been and is now studying basic tax problems, many of them in close collaboration with the staff of the
Joint Committee on Internal Revenue Taxation, aiid will be ready to assist the
committee in every way possible.
I turn now to some specific comments on H. R. 1. In connection with our
consideration of H. R, 1, and numerous inquiries for information relating to certain other suggestions for reduction of the individual income tax in 1947, the
Treasury Department has compiled a large amount of data, I have appended
to my statement some of the more significant materials for the use of the committee. [See also tables to, stateinent before Senate Finance Committee which
follows,]
H, R, 1 includes a general reduction of individual income tax rates and a special
additional exemption for taxpayers over 65 years of age. Under the rate reductions in H, R, 1, all taxpayers with net incomes below about $303,000 would have
their present income tax reduced by a flat 20 percent. For higher incomes the
cut would become gradually smaller until it reached 10.5 percent above $5,000,000,
Only about 1,100 taxpayers would get less than a 20 percent reduction. Exemptions of taxpayers over 65 years of age are raised by $500.^
The bill would reduce revenues by about $3,500 million in a full year. Of the
total, $3,300 millio.n would be attributable to rate reductions and $179 million
to the increase in exemptions for taxpayers over 65.2
As I view the matter, if a 1947 tax bill has any place at all in the management of
our financial affairs, it should be dedicated to bringing relief primarily to taxpayers
who have borne extraordinarily heavy burdens during the war and postwar transition years. As the President stated in his budget message, when the time comes
for taxeSyto be reduced, millions of taxpayers with small incomes will have a high
priority among the claimants for tax relief.
Even if tax reduction were now appropriate, the method of reduction adopted
in H. R. 1 would not appear to be equitable. The bill would give too little reduction to lower incomes and relatively too much to higher incomes. This can be
seen by looking at the effect of the proposed reduction on net incomes after tax
and by comparing taxes under the bill with those in effect before the wartime increases. Tables B and C and chart 1 [chart omitted] show that while the tax
relief at the bottom of the income scale is not significant in relation to tax burdens
at these levels, the incomes left after present law taxes, by comparison, are disproportionately increased at the top of the scale. Tables D and E show that
H. R. 1 would wipe out most of the wartime increase in taxes on very large incomes. It would leave taxes on other incomes much higher than before the war.
(See tables A-E following.)
To be sure in a comprehensive revision of the tax system we should not be
bound by the prewar rates. Such a revision would aim at equitable adg'ustments,
incentive effects, and sound administration under peacetime conditions. This
would necessarily entail consideration of excise taxes, corporate taxes, and death
taxes as well as the individual income tax. Such.a comprehensive revision cannot be accomplished in an interim bill. We should guard against action now with
respect to any one type of tax which might make it impossible later to fit that tax
together with the other taxes into a well-balanced peacetime tax system.
One feature of H. R. 1 is addressed to a special situation. Provision is made
for a $500 special tax exemption for persons over 65 years of age. It is estimated
that this speciar allowance would give reUef to about 2,900,000 aged persons, of
whom 900,000 would become nontaxable,
1 In the case of joint returns, exemptions are increased by $1,000 where both husband and wife are over 65
and each has $500 or niore gross income.
2 Estimates of tax liabihties are made for calendar year 1947.
220
REPORT OF. THE SECRETARY OF THE TREASURY
We all realize that the recent price rises have imposed hardships on all persons
with low fixed incomes. This group includes persons over 65 living ori pensions
or small amounts of other income. It also includes persons under 65 with fixed
incomes. I do not believe that it would be fair to grant a special income.tax
exemption to persons over 65 and not to similarly situated persons under 65.
There are niany other special groups with characteristically low incomes pressing
for special exemptions. To grant such an exemption to one group, would make
it less defensible to deny it to others.
I wish to repeat that in my opinion both the economic situation and the size
of the public debt point definitely to the need for keeping present levels of .taxation.
I assure you that the administration is determined, as is the Congress, to hold the
Government expenditures for the fiscal year 1948 bo the lowest level consistent
with our national obligations and pubhc needs.. I am convinced that the entire
surplus which is likelj'' to be realized in 1948 should be devoted to the reduction of
the public debt. It will be time enough to enact tax reductions when and if there
is definite evidence that the 1948 surplus is greater than prudence requires to be
applied toward reduction of the public debt.
TABLE A.—Comparison of individual income tax liabilities under present law and
under H. R. 1 dnd the revenue,effects of each ofthe provisions of H. R. 1, distributed
by net-income classes at $166 billions of income payments in the calendar year 1947
[In millions of dollars]
Decrease i n t a x from p r e s e n t law
resulting from each provision of
H.R.I
T o t a l t a x liability
underN e t income class ($000)
Present
law
Under 1
Ito 2
2 to 3
3 to 4
4to5
_
-
-
-
- -
---
Under 5 .
S t o 10
10 to 25
25 to 50
50tol00
100 to 250
250 to 500 .
-500 to 1,000
1,000 a n d over
5 a n d over
Total
--
.-
Total
decrease
in tax from
present
law
H.R.I
R e d u c t i o n of t e n t a t i v e
n o r m a l t a x a n d surt a x in—
Additional
exemption
of $500 for
persons
Amounts
Amounts
over 65
of $250,000 larger t h a n years of age
or less b y $250,000 b y
24 percent i 15 p e r c e n t 2
299.5
2,839. 6
3,692. 3
1,827.7
775.9
233. 5
2, 224. 5
2,905.2
1,416.6
608.7
66.0
615.1
787.1
411.1
167.2
59.9
568.0
738.5
365.5
155.2
6.1
47,1
48. 6
45.6
12.0
9,435. 0
7,388. 6
2, 046. 4
1,887. 0
159.4
1,318.0
1,874.4
1,435. 5
1,183. 6
915.2
328.9
234.5
276.2
1,041.6
1,495.1
1,157. 5
959.5
747.9
274.1
202. 3
245.5
276. 4
379.3
278. 0
224.1
167.3
54.8
32.2
30..7
263.6
374.4
276.6
223.5
167.1
51.2
20.8
8.5
12.8
4.9
1.4
.6
,2
. .-
7, 566. 3
6,123. 5
-
17,001. 3
13, 512.1
3."6'
11.4
22.2
•
1,442.8
1,385. 7
37. 2
19.9
3, 489. 2 •
3,272.7
37.2
179.3
NOTE.—Figures are rounded and will not necessarily add to totals.
1 This amounts to a reduction of 20 percent from the present law final normal tax and surtax,
2 This amounts to a reduction of 10.5263 percent from the present law final normal and surtax.
3 LdSs than $50,000.
• (3) •
(2)
~ (3)
REPORT OF THE SECRETARY OF THE TREASURY
221
TABLE B.—Comparison of combined normal tax and surtax rates under present
law 1 and under H. R. 1 ^
C o m b i n e d n o r m a l tax a n d surtax rates
Surtax n e t income
Percentagep o i n t decrease in
r a t e s comR a t e s after r e d u c t i o n s pared w i t h
under
present law
5-percent
H.R.I
reduction
Present law
.Exceeding—
$0
$2,000.—--..
$4,000.
.
$6,000
....
$8,000—
:.-.
$10,000
--..
$12,000
$14,000.
$16,000
$18,000
$20,000
$22,000
$26,000
$32,000.
$38,000
$44,000
$50,000
$60,000
$70,000.
$80,000
:
$90,000
-.$100,000$150,000
$200,000—$302,396 a n d o v e r .
Not exceeding-
$2,000....
$4,000...
$6,000...
$8,000...
$10,000..
$12,000..
$14,000-.
$16,000-.
$18,000..
$20,000..
$22,000..
$26,000:.
$32,000..
$38,000..
$44,000..
$50,000..
$60,000..
$70,000..
$80,000..
$90,000..
$100,000.
$150,000.
$200,000.
$302,396.
Tentative
rates
Percent
20
22
26
30
34
38
43
47
50
53
56
59
62
65'
69
72
75
78
81
84
87
89
90
91
Percent
19.00
20.90
24.70
28.50
32.30
36.10
40.85
44.65
47.50
50.35
53.20
56.05
58.90
61.75
65.55
68.40
71.25
74.10
76.95
79.80
82.65
84.55
85.50
3 86. 45
1 I n t e r n a l R e v e n u e Code, as a m e n d e d b y R e v e n u e A c t of 1945.
2 A bill i n t r o d u c e d on J a n . 3,1947, i n t h e H o u s e of R e p r e s e n t a t i v e s , 80th Cong.,
3 Subject to a m a x i m u m effective r a t e l i m i t a t i o n of 85.5 p e r c e n t .
4 Subject to a m a x i m u m effective r a t e l i m i t a t i o n of 76.5 percent.
R a t e s after
Percent
15.20
16. 72
19.76
22.80
25.84
28.88
32.68
. 35.72
38.00
40.28
42. 56
44.84
47.12
49.40
52.44
54.72
57. 00
59.28
61.56
63.84
66.12
67.64
68.40
69.16
4 77. 35
Percent
3.80
4.18
4.94
5.70
6.46
7.22
8.17
8.93
9.50
10.07
10.64
11.21
11.78
12.35
13.11
13.68
14.25
14.82
15.39
15.96
16.53
16. 91
17.10
17.29
9.10
222
TABLE
REPORT OF THE SECRETARY OF THE TREASURY
C - -Comparison of individual income taxes under'present law ^ and under
H. R. Jf,2 for specified amounts of net income
M A R R I E D PERSONS—NO D E P E N D E N T S
Amounts of tax
Net income
before
personal
exemption
$1,200 .
$1,500
_.
$2,000 .
$2,500
$3,000
- .
$4,000.
$5,000
$6,000
$8,000
$10,000
$15,000
$20,000
-.
$25,000
...
$50,000.$75,000 .
$100,000
$250,000 ..
$303,396 «
$350,000
$500,000...
$750,000
.
$1,000,000
$2,000,000
.$3,000,000
.
$4,000,000
$5,000,000........
$6,000,000.
-.
Present
law
Effective rates
H. R, 1 4 Present
law
Percent
3.2
$30
$38
6.3
76
95
9,5
152
190
11.4
228
285
12.7
304
380
14.7
589
471
16.0
798
638
17.4
1,045
836
19.7
1, 577
1,262
21.9
2,185
1,748
27.0
4.047
3,238
32.0
6.394
6,115
36.3
9,082
7,266
49:6
24, 795
19,836
57.5
43, 092
34,474
63.1
63,128
50, 502
76.5
191, 340
163, 072
78.3
237,500
190, 000
79.4
277, 790
226,049
8L5
407,465
342, 074
83.2
623, 590
635,449
84.0
839, 715
728,824
1, 704, 215 1, 502, 324
85.2"
85.5
6 2. 565, 000 2, 275,824
6 3. 420, 000 3,049,324 - 85.6
85.5
6 4, 275, 000 3, 822, 824
86.6
6 5,130,000 7 4, 590, 000
Decreases compared
with present law
Decrease as a percentage of—
H . R . 14 Amounts Effective
rates
Present
law tax
Net
income
after
^ present
law tax
Percent
2.5
$8
5.1
19
7.6
38
9.1
67
10.1
76
118
n.8
160
12 8
209
13.9
316
16 8
437
17.5
809
21 6
1,279
25.6
1,816
29.1
4.959
^ 39.7
'
8,618
46.0
12, 626
60.6
38, 268
6L2
47,500
62.6
61, 741
64.6
65, 391
68.4
7L4
88,141
72.9
110,891
75.1
201,891
75.9
289,176
76.2 370,676
76.5 452,176
76.5
640, 000
Percent
20.0
20 0
20 0
20 0
20.0
20.0
20.0
20.0
20.0
20.0
20.0
20.0
20.0
20.0
20.0
20.0
20.0
20.0
18.6
16.0
14.1
13.2
IL8
11.3
•• 10.810.6
10.6
Percent
0.7
L4
2.1
2.6
2.9
3.5
3.8
4.2
4.9
5.6
7.4
9.4
n,4
19.7
27.0
34.2
66.2
72.1
7L7
70.7
69.7
69.2
68.3
66.6
63.9
62.4
62.1
Percent
0.7
13
19
23
2.5
3.0
3.2
3.5
3.9
4.4
5.4
6.4
7.3
9.9
n.5
12.6
16.3
. 15. 7
14.8
13.1
n.8
ILl
10.1
9.6
9.3
9.0
9.0
1 Internal Revenue Code, as amended by Revenue Act of 1946.
2 A bill introduced on Jan. 3, 1947, in the House of Representatives, 80th Cong,, 1st sess.
3 Assumes only 1 spouse has income.
4 Assumes taxpayer is under 65 years of age.
8 Point at which 15-p.ercent reduction of present law tentative tax takes effect under H. R. 1.
6 Taking Into account maximum effective rate limitation of 85.5 percent.
7 Taking into account maximum effective rate limitation of 76.5 percent.
223
REPORT OF THE SECRETARY OF THE TREASTJRY
TABLE D.—Comparison of amounts and effective rates of individual income tax in
1939 with present law ^ and H. R. ly^ for specified amounts of net income
MARRIED PERSON ^ N O
DEPENDENTS
Percentage-point
increase i n effective
r a t e s from 1939
Efi'ective rates
A m o u n t s of t a x
N e t income
before personal
exemption
Present
law
1939 4
$1,200
$1,600
. $2,000
$2,500
$3,000
$4,000
$5,000
$6,000
$8,000
$10,000 $15,000
$20,000
$25,000
$5U,000 .
.$75,000-—.
$100,000
.$250,000
$303,396 6
.$350,000
..
$500,000
- $760,000.$1,000,000
$2,000,000
$3,000,000....'..-.
$4,000,000..
$5,000,000
$6,000,000
$8
44
80
116
248
416
924
1, 589
2,489
8,869
18, 779
32,469
128,294
164, 571
197,194
304,144
489,094
679, 044
1.449,019
2, 228, 994
3, 008, 994
3,788,994
4, 578, 969
H . R . 15
$30
$38
76
96
152
190
285
228
380
304
471
589
798
638
836
1,045
1,262
1,577
2,186
1,748
4,047
3,238
6,394
6,116
9,082
7,266
24, 795
19,836
34,474
43, 092
50, 502
63,128
153,072
191,340
190, 000
237, 500
226,049
277, 790 •
342,074
407,465
635,449
623, 590
728,824
839,716
1, 602,324
1, 704,216
2,275,824
7 2, 565,000
3, 049,324
7 3. 420,000
7 4,275.000 . 3.822,824
7 5,130,000 8 4, 590, 000
1939 4
Present
law
Percent
Percent
3.2
6.3
9.6
11.412.7
14.7
16.0
17.4
19.7
21.9
27.0
32.0
36.3
49.6
57.5
63.1
76.5
78.3
79.4
81.6
83.2
84.0
85.2
85.6
85.5
85.5
85.5
0.3
Ll
L6
L9
3.1
4.2
6.2
7.9
10.0
17.7
25.0
32.5
5L3
54.2
56.3
60.8
65.2
67.9
72.6
74.3
75.2
75.8
76.3
H . R . I fi P r e s e n t
law
Percent
2.6
5.1
7.6
9.1
10.1
n.8
12.8
13.9
15.8
17.5
21.6
25.6
29.1
39.7
46.0
50.5
6L2
62.6
64.6
68.4
7L4
72.9
76.1
75.9
76.2
76.5
76.6
Percent
3.2
6.3
9.6
1L4
12.4
13.6
14.4
16.6
16.6
17.7"
20.8
24,1
26.3
3L9
32.5
30.6
25.2
24.0
23.0
20.7
17.9
16.1
12.8
n.2
10.3
9.7
9.2
H . R . 1«
Percent
2.5
5.1
7.6
9.1
9.8
10.7
11.2
12.0
12.7
13.3
16.4
17.7
19.1
22.0
21.0
18.0
9.9
84
8.2
7.6
6.2
6.0
2.7
L6
LO
.7
,2
1 Internal Revenue Code, as amended by Revenue Act of 1945.
2 A bill Introduced on Jan. 3,1947, in the House of Representatives, 80th Cong., 1st sess.
8 Assumes only 1 spouse has income.
^ Assumes maximum earned net income.
« Assumes taxpayer is under 65 years of age.
6 Point at which 15-percent reduction of present law tentative tax takes effect under H. R. 1.
7 Taking into account maximum effective rate limitation of 85.6 percent.
8 Taking into account maximum effective rate limitation of 76.6 percent.
TABLE E.—Comparison of net income after individual income taxes in 1939 with
present law ^ and H. R. 1 ^ for specified amounts of net income
M A R R I E D P E R S O N 3—NO D E P E N D E N T S
N e t income after t a x
N e t income after t a x
N e t Income before personal exemption
$1,200 . .
$1.500.....
$2,000
$2,500
$3,000 ._
$4,000
$5,000
: ...
$6,000
$8,000
$10,000 .
$15,000..--..
$20,000
$25,000
$60,000
1939 4
$1,200
1,500
2, 000
•2,500
2,992
3,956
4,920
5, 884
7,752
9,585
14, 076
18,411
22, 511
41,131
Present
law'
$1,162,
1,405
1.810
2,215
2,620
3,411
4,202
4,955
6,423
7,815
10, 953
13,607
15.918
26,205
H . R . 15
'
$1,170
1,424
1,848
2,272
2,696
3,529
4,362
5,164
6,738
8,252
11, 762
14, 885
17, 734
30,164
N e t income before personal exemption
Present
law
1939 4
$75,000
$56,221
67, 531
$100,000
121, 706
$250,000
138,825
$303,396 6 . . . $350,000- .
152,806
$500,000
195,856
$750,000..
260, 906
$1,000,000.
320,956
550,981
$2,000,000-_.. — .
771, 006
$3,000,000
991,006
$4,000,000
1,211,006
$5,000,000. _.
1, 421, 031
$6,000,000
$31,908
$40, 526
49,498
36.873
58,660
96, 928
65,896
113,396
72,210
123,951
92, 536
157,926
214,651
126, 410
271,176
160, 286
295, 786
497,676
7 435, 000
724,176
7 580,000
950, 676
7 725, 000
1,177,176
7 870, 000 81,410,000
.
1 Internal Revenue Code, as amended by the Revenue Act of 1945.
2 A bill Introduced on Jan. 3,1947, In the House of Representatives, 80th Cong., 1st sess.
3 Assumes only 1 spouse has income.
4 Assumes maximum earned net income.
5 Assumes taxpayer is under 65 years of age,
6 Point at which 15-percent reduction of present law tentative tax takes effect under H, R. 1.
7 Taking Into account maximum effective rate limitation of 85.5 percent.
8 Taking into account maximum effective rate limitation of 76.5 percent.
H, R, 1 5
224
REPORT OF THE SECRETARY OF THE TREASURY
Exhibit 33
Statement of Secretary Snyder before the Senate Finance Committee, April 22,
1947, on H. R. 1, a bill to reduce individual income tax payments
I am glad to have this opportunity to appear before the Senate Finance Committee. You have before you H. R. 1, a bill which would make the second major
postwar tax reduction. I have previously stated my views on tax reduction in
my recent appearance before the House Ways and Means Committee. Today, I
wish to repeat some of the reasons why I believe that no general tax reduction is
advisable at this time and also to comment in more detail pn certain specific
aspects of H. R. 1.
I am convinced that a general tax reduction at this time is neither necessary nor
appropriate. I believe that this conclusion is supported by a careful examination
of both the current economic conditions and the budgetary situation. The
desirability of maintaining present tax rates for this year is emphasized by the
size of the public debt. Moreover, premature reduction of one tax, such as °is'
proposed in H. R. 1, might make later achievement of a comprehensive revision
of the tax system difficult or impossible. Finally, even if tax reduction were now
appropriate, H. R. 1 does not make the right approach to a tax reduction program.
E C O N O M I C CONDITIONS
Present economic conditions do not call for a tax reduction. The American
economy has already made a remarkably rapid transition from record wartime
production to record peacetime output. Employment is high, and national
income continues to reach new peacetime levels. Under these favorable economic
conditions present taxes do not impose an excessive hardship on the American
people.
Under present conditions, I do not believe that a tax reduction would bring
about any significant increase in production, nor do I believe that a tax reduction
is necessary at this time to assure continued high-level production. The rapid
and sustained growth of employment and output achieved in 1946 and the early
months of 1947 was accomplished with present tax rates. During that period,
millions of demobilized veterans found civilian jobs, and there was a rapid increase
in the number of new small business firms. Business as a whole is now op.erating
virtually at capacity. Production is now limited by shortages of materials and
labor rather than by lack of venture capital or markets. All of these facts are
evidence of the vigor and adaptability of our free-enterprise system. Employment and output will undoubtedly rise still higher in the future.with the normal
growth of the economy. '
Infiationary pressures have still not subsided. Prices and production have
not yet fully adjusted to one another. So long as inflationary pressures exist,
there is good economic reason for maintaining high taxes. If we should cut taxes
prematurely, we could easily contribute to further price rises and to economic
instability. If we cut taxes too soon we shall probably find it impossible to
reverse our action. On the other hand, it will be time enough to cut taxes when
it becomes clear that conditions call for such action. ^
B U D G E T A R Y SITUATION
The current budgetary situation also calls for the maintenance of existing taxes.
I am gratified that the latest estimates indicate a budgetary surplus for the fiscal
year 1947. If the taxes are not reduced we shall also be able to achieve a budgetary surplus in the fiscal year 1948. It is by no means clear, however, that the
surplus in the fiscal year 1948 will exceed the amount foreseen in the President's
budget, except for the effect of the subsequent adoption by the Congress of the
President's recommendation for extension of the so-called war excise tax rates.
Under existing law, revenues for the fiscal year 1948 are estimated at -$38.8 billion. The President's'budget puts expenditures for the^ fiscal year 1948 at $37.5
billion. A conference committee of the House and Senate is still considering
various legislative budget estimates of expenditures. We still do not have any
clear evidence that expenditures in the coming fiscal year can be reduced below
the President's budget figures of $37.5 billion. In my opinion, it would be unwise
to reduce the revenues before we have a clear picture of what expenditures will
be authorized.
REPORT OF THE SECRETARY OF THE TREASURY
225
PUBLIC DEBT
We have emerged from the war and immediate transition period with a public
debt of approximately $258 billion. The size of the debt is a strong argument
against a tax reduction at this time. Under present conditions, I believe it will
be sound financial policy to achieve as large a budget surplus as is possible and
to apply that surplus against the public debt. When national income is high, as
it is now, it is prudent to reduce the public debt as rapidly as possible. The
present situation gives us an opportunity to make further reduction in the debt.
I believe that we should now prove our determination to retire* public debt by
making as big a payment on it as we can. If we do so, there will be less cause for
concern if in some future years we find it desirable to postpone temporarily further
debt retirement.
COMPREHENSIVE TAX REVISIONS LATER
During recent years, when attention was necessarily devoted almost exclusively
to urgent matters of war finance, a great number of technical tax problems have
been accumulating. Moreover, much interest has developed in a series of fundamental tax problems. The problems to which I refer are not solely, or even
primarily, ones of tax rates. They relate rather to tax structure. These problems now need careful consideration, especially in view of the high level of current and prospective revenue requirements.
Although I do not believe that the time has yet come for revisions involving
major tax reductions, it is not too early to begin studies of desirable tax changes
to take effect at a later date. The Treasury Department has been studying a
large number of important tax problems, working on many of them in close collaboration with the staff of the Joint Committee on Internal Revenue Taxation.
The Treasury stands ready to assist the Congress in any way possible.
In anticipation of later tax reductions, we should review the whole tax system.
We should reexamine not only the individual income tax, but also the corporation income tax, excise taxes, and estate and. gift taxes. Such a comprehensive
review should aim at revisions that will fit all major taxes together into a system
that will produce adequate revenue, will be fair and equitable, will interfere as
little as possible with incentives to work and invest, and will help maintain mass
markets for mass production.
There is danger that if we act prematurely by reducing the rates of one tax,
without consideration of other problems, we shall make it difficult or impossible
to adopt many needed changes at a later time. Maiiy such fundamental tax revisions will involve substantial revenue reduction. If we now make a major
reduction- along the lines of H. R, 1, we may later find that we are not able to
adopt many of the basic revisions in the individual income tax and the other taxes
that are necessary for a sound postwar tax system.
SPECIFIC DISCUSSION OF H. R. I
I turn now to a more specific examination of H. R. 1, as passed by the House.
For the use of the committee, I have appended to my statement several tables.
This material includes a variety of statistical data on the composition of the individual income tax base and other information that I believe will be helpful in
your consideration of H. R. 1 and other proposals for tax reduction.
H. R. 1 includes a general reduction of individual income tax rates and a special
additional exemption for taxpayers over 65 years of age. It would reduce the
income tax by 30 percent for taxpayers whose net income in excess of exemptions
is $1,000 or less, and by an amount which under the notch provision would rapidly
fall to 20 percent at a net income of $1,396 after exemptions. For net income
after exemptions between $1,396 and about $302,400, the reductions would be 20
percent. For higher incomes the reduction would gradually taper off to 10.5 percent above $5,000,000. The rate reductions in the amended bill are identical
with those in the original bill for all taxable net incomes in excess of $1,396.
Only about 1,100 taxpayers would get less than a 20 percent rate reduction.
About 14.4 million taxpayers would get a 20 percent rate reduction. About 8.5
million would get between 20 and 30 percent. The remaining 24.8 million taxpayers would get a 30-percent rate reduction. .
H. R. 1 grants a special additiorial exemption of $500 to persons over 65 years
of age. This additional exemption is subject to the limitation that persons
qualifying for it must include in their gross income for tax purposes the first $500
226
REPORT OF THE SECRETARY OF THE TREASURY
' received from certain types of periodic pension or retirement annuity benefits
that are now fully exempt from taxation. It is estimated that this additional
exemption would reduce the income tax of 2.8 million persons over 65, of whom
825,000 would be made nontaxable.
It is estimated that the bill would reduce tax liabilities by $3,769 million for
a full year. This is $280 million more than the original bill. Of the total reduction in liabilities $3,624 million would be attributable to rate reductions and $145
million to the increase ih exemptions for taxpayers over 65. These are estimates
of tax liabilities for the calendar year 1947.
Since H. R. i is retroactive to January 1, 1947, its enactment wpuld reduce
receipts in the fiscal year 1948 by more than the amount of one year's reduction
in tax liabilities and would also necessitate a large amount of additional tax refunds.
It is estimated that the House bill would reduce receipts in the fiscal year 1948
by $3,994 million. It would increase refunds by $751 million. In considering
the effect of H. R, 1 on the budget for the fiscal year 1948, it is necessary to combine the decrease in receipts of $3,994 million with the increase in expenditures
of $751 million for additional refunds. H. R. 1 would weaken the budget for
the fiscal year 1948 by $4,745 milhon.
As I have already said, I do not believe that a tax reduction is now appropriate.
I now wish to point to some inequities in H. R. 1 as a tax-reduction measure.
Although the bill has been somewhat modified since it was originally introduced,
it would still provide relatively too little tax reduction for low and middle incomes
as compared with high incomes. As I said to the Ways and Means Committee,
it seems to me that if a 1947 tax bill has any place at all in the management of
our financial affairs, it should aim primarily at bringing relief to taxpayers who
have borne extraordinarily heavy burdens during the war and postwar transition
years and should give consideration to inequities. I do not believe that H. R. 1
accomplishes these objectives;
H. R. 1 would not reduce taxes in the same way that we increased them during
the war. This can be clearly seen in table C, which compares taxes at different
net incomes under the 1939 law, present law, and H. R. 1.
To illustrate, H. R. 1 would eliminate 22 percent of the difference between
present taxes and 1939 taxes for a married person with no dependents and a
net income of $5,000. But at a net income of $1,000,000, this bill would wipe
out 69 percent of the tax increase since 1939, Taxes at the $5,000 level would
still be eight times as high as in 1939, but at the level of $1,000,000, taxes would
be only a little higher than in 1939, H. R, 1 would reduce taxes on very high
incomes to a level only a little higher than that before the war. It would leave
taxes on lower and middle incomes much higher than before the war.
Despite modificatipns at both the lower and upper extremes, H. R. 1 still
provides in the main a flat percentage cut in present taxes. Of the $3,769 million
reduction, $2,262 million is attributable to the 20-percent reduction, $724 million
is attributable to the 30-percent reduction, $520 million to the notch area of 20-30percent reduction, $118 million to the 10}^- to 20-percent reduction, and $145
million to the exemption for persons over 65.
So far as I know, a flat percentage cut in individual income taxes has been
made only twice before in the history of the Federal income tax. , The first time
was in the Revenue Act of 1924, applicable to 1923 incomes. That act made a
flat 25-percent reduction, but exemptions were greater and rates on lower incomes
were much less than undei* present law.
The second time a flat percentage cut in taxes, was made was in the Reveriue Act
of 1945. But I want to emphasize the important differences between the 1945
act and the kind of reduction proposed in H. R. 1. The 5-percent cut under the
Revenue Act of 1945 was only one of three important changes in the individual
income tax. It accounted for less than one-fourth of the total reduction of the
individual income tax. The remaining three-fpurths of the 1945 reduction was
made in the form of an increase in the normal-tax exemptions and a reduction of
3 percentage points in each surtax bracket.
There is a significant difference between a flat percentage cut in existing tax
rates and a uniform reduction of a certain number of percentage points in each
bracket. A 20-percent flat reduction would reduce rates 17 percentage points in
an 85-percent rate bracket, but only 4 percentage points in a 20-percent rate
bracket. In contrast, a 5-percentage-point reduction in each surtax rate, which
would lose about the same amount of revenue, would give a 5.9-percent reduction
in an 85-percent bracket rate, and a 25-percent reduction in a 20-percent bracket
REPORT OF THE SECRETARY OF THE TREASURY
227
rate. An across-the-board percentage cut of the type in H. R. 1 decreases the
progressivity; of the income tax.
The $500 special tax exemption for persons over 65 years of age included in
H. R. 1 is addressed to the special problem of one group. The bill as amended
would partially offset the additional exemption by the requirement that taxpayers
include in their gross income the first $500 of certain types of pension and retirement income now fully tax-exempt, such as social security old-age benefits, railroad retirernent benefits and retirement pay of armed forces personnel retired for
disability.
This modification is a complication of the original provision, which does not
meet the fundamental objections to such a special exemption. I do not believe
that exclusions of particular kinds of income from the tax base are an appropriate
means of bringing relief to special groups. As I told the Ways and Means Committee, I am opposed to extension of present exclusions from the individual income
tax base. I do not believe that it would be fair to increase income tax exemptions
for persons over 65 years of age and not for similarly situated persons under 65.
H, R, 1 is not only deficient from the standpoint of equity. It is not the wellbalanced approach to the important problem of maintaining incentives and markets, which will be essential when a tax reduction is appropriate. In a tax reduction program, the whole problem of incentives and markets merit broad and careful
consideration. The problem is not merely one of individual income tax rates. It
includes other phases of the tax system and many features of the individual iricome tax not treated in H. R, 1, Subjects that will need to be considered include
the taxation of dividend income, tax treatment of different forms of business, loss
carry-backs and carry-forwards, depreciation, treatment of family income, exemptions and other matters.
Enactment of H, R, 1 would complicate the individual income tax and increase
administrative costs. It would cancel a part of the great progress that has been
made in recent years toward simplification of tax forms. The different rates of
reduction from, tentative tax, the '^notch" rate, and the provisions for the aged
involving the partial inclusion of income now excluded would be confusing to
many taxpayers. There would be an increase in refunds, particularly for lowincome taxpayers.
'
CONCLUSION
In my opinion, H. R. 1 should not be enacted. It would make a reduction in
revenues of almost $4 billion and necessitate an increase in expenditures of $751
million for tax refunds at a time when a balanced budget and substantial debt
reduction should be our first objective. By concentrating a large reduction in
one tax, H, R. 1 would make later well-balanced tax revision more difficult, and,
perhaps impossible, H, R, 1 would not be an equitable tax reduction. It would
unnecessarily complicate the individual income tax.
In conclusion, I wish to repeat that in my judgment economic conditions,
budgetary uncertainties, and the size of the public debt, all call for maintaining
present tax rates in 1947. Under present conditions, it is sound financial policy
to achieve as large a surplus as possible. The administration will continue to.
make every effort to hold Government expenditures for the fiscal year 1948 to the
lowest level possible in view of our national obligations and public needs, I am
sure, however, that any surplus that is likely to be realized in 1948 could best
be applied to the reduction of the public debt.
764788—48
16
22g
REPORT OF THE SECRETARY OF THE TREASURY
TABLE A.—Comparison of cornbined normal tax and surtax rates under present law ^
and the House hill (H. R. 1)
Surtax net uicome
Combined normal tax and surtax rates
Percentagepoint decrease (—) or
Rates after increase (+)
reductions tn rates comRates after under House pared with
6.-percent bill (H, R. I) present law
reduction
Present law
Exceeding—
$1,000——.
$1,396......
$2,000.$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000.,-.:
$18,000
$20,000.—
$22,000
$20,000
$32,000
$38,000
$44,000....
$60,000$60.000$70,000-..:.
$80,000
:$90,000
$100,000
$150,000
-.
$200,000
.
$302,396 and over.
Not exceeding-
$1,000...
$1,396 2..
$2,000...
$4,000.-$6,000...
$8,000...
$10,000..
$12,000.$14,000..
$16,000..
$18,000..
$20,000..
$22,000-$26,000..
$32,000..
$38,000..
$44,000..
$50,000..
$60,000..
$70,000..
$80,000..
$90,000-.
$100,000.
$150,000.
$200,000.
$302,396 3
Tentative
rates
Percent
Percent •
20
19.00
22
26
30
34
38
43
47
60
63
66
59
62
66
69
72
76
78
81
84
87
89
90
91
20.90
24.70
28.50
32.30
36.10
^ 40.85
44.66
47,50
60.35
63.20
66.05
68.90
6L75
65.55
68.40
7L26
74.10
76.96
79.80
82.66
84.65
86.60
4 86,45
Percent
13.30
20.00
16.20
16.72
19.76
22.80
25.84
28.88
32.68
36.72
38.00
40.28
42,56
44,84
47,12
49.40
62.44
64.72
.67.00
59.28
6L56
63.84
66.12
67.64
68.40
69.16
5 77.35
Percent
-5.70
+L00
-3.80
-4.18
-4.94
-5.70
-6.46
-7.22
-8.17
-8.93
- 9 . 60
-10,07
-10.64
-1L21
- n . 78
-12. 35
-13.11
-13.68
-14. 25
-14.82
-16.39 '
-15.96
-16. 63
-16.91
-17.10
-17. 29
-9.10
»Intemal Revenue Code, as amended by Revenue Act of 1945.
2 Indicates area of the notch provision under the House bill. The 33.5-percent reduction of present law
tentative tax ends at $1,000 of surtax net income and the 24-percent reduction of present law tentative tax
takes effect at $1,396.
3 Point at which 15-percent reduction of present law tentative tax takes effect under the House bill.
4 Subject to a maximum effective rate limitation of 85.5 percent,
5 Subject to a maximum effective rate hmitation of 76.5 percent.
REPORT OF THE SECRETARY OF THE TREASURY
229
TABLE B.—Comparison of individual incorne taxes under present law ^ and under
the House hill (H. R. 1), for specified amounts of net income
M A R R I E D PERSON 2—NO D E P E N D E N T S
A m o u n t s of t a x
N e t income b e fore personal exemption
$1,200
$1,500
$2,000 <
$2,100*
$2,200 4
$2,300 4
$2,396 4
$2,500
$3,000
$4,000
$5,000
$6,000
$8,000..-..$10,000
$15,000
$20,000
$25,000
$50,000
. . :.
$75,000—
—
$100,000
„- .
$250,000...
$303,396 5
$350,000
....
$500,000
$750,000..
$1,000,000
$2,000,000.-....$3,000,000.
$4,000,000
$5,000,000
$6,000,000
Present
law
H o u s e bill
( H . R . 1)2
$27
$38
67
95
190
133
209
153
228
173
247
193
266
212
285
228
380
304
589
471
798
638
1,045
836
1,577
1,262
^ 2,185
1,748
4,047
3,238
6,394
6,116
9, 082
7, 266
24, 795
19,836
43, 092
34,474
63,128
50, 502
191, 340
163,072
237, 500
190, 000
277,790
226, 049
407,465
342,074
623, 590
535, 449
839, 715
728,824
1,704,215
1, 502,324
« 2, 565, 000
2,275, 824
8 3,420,000
3, 049, 324
6 4, 275,000
3,822,824
6 5,130,000 7 4, 590,000
Effective r a t e s
Present
law
Percent
3.2
6.3
9.5
10.0
10.4
10.7
11.1
n.4
12.714.7
16.0
17.4
19.7
21.9
27.0
32.0
36.3
49.6
57.563.1
76.5
78.3.
79.4
8L5
83.2
84.0
85.2
85.5
85.5
85.5
86.5
Decrease c o m p a r e d
w i t h present l a w
Decrease as a percentage of—
House
bill
A m o u n t s Effective
rates
( H . R . 1)3
Present
law t a x
N e t income
after
present
law t a x
Percent
1.0
L9
.2.9
2.7
2.5
2.3
2.2
2.3
2.6
2.9
3.2
3.6
3.9
4.4
6.4
6.4
7.3
9.9
aL6
12.6
15.3
16.7
14.8
13.1
n.8
' Il.l
10.1
9.6
9.3
9.0
9.0
Percent
30.0
30.0
30.0
26.8
24.1
2L9
20.0
20.0
20.0
20.0
20.0
20.0
20.0
20.0
20.0
20.0
20.0
20.0
20.0
20.0
20.0
20.0
18.6
16.0
14.1
13.2
11.8
n.3
10.8
10.6
10.6
Percent
1,0
2,0
3,1
3,0
2.8
2,6
2,6
2,6
2,9
3.6
3.8
4,2
4.9
5.6
7.4
9,4
11.4
19.7
27.0
34.2
65.2
72.1
71.7
70.7
69.7
69.2
68.3
66.5
63.9
62.4
62.1
Percent
2.2
4.4
6.7
7.3
7.9
8.4
8.9
9.1
10.1
n.8
12.8
13.9
15.8
17.6
21.6
25.6
29.1
39.7
46.0
60.5
61.2
62.6
64. 6
68.4
71.4
72.9
75.1
75.9
76.2
76.5
76.5
$11
29
57
66
55
64
63
67
76
118
160
209
• 315
437
809
1,279
1,816
4,959
8,618
12,626
38,268
47, 500
51, 741
65,391
88,141
110,891
201, 891
289,177
370, 677
452,177
540,000
NOTE.—Computations were made from unrounded figures and will hot necessarily agree with figures
computed from the rounded amounts and percentages shown.
1 Internal Revenue Code, as amended by Revenue Act of 1945,
2-Assumes only 1 spouse nas Income.
3 Assumes taxpayer Is under 65 years of age.
* These income levels are within the area of the notch provision imder the House bill. The.33.5-percent
reduction of present law tentative tax ends at $2,000 of net income before personal exemption and the 24percent reduction of present law tentative tax takes effect at $2,396.
« Point at which 15-percent reduction of present law tentative tax takes effect under the House bill.
8 Taking Into account maximum effective rate limitation of 85.5 percent.
7 Taking into account maximum effective rate limitation of 76.6 percent.
230
REPORT OF THE SECRETARY OF THE TREASURY
TABLE C.—Comparison of amounts and effective rates of individual income tax in
1939 with present law ^ and the House bill (H. R, 1), for specified amounts of net
income
M A R R I E D PERSON 2—NO D E P E N D E N T S
$1,200
$1,500
$2,000*.$2,100»
$2,200«
$2,300 6
$2,396*
$2,500
$3,000
$4,000
$5,000
$6,000.
- .
$8,000
$10,000.
$15,000
$20,000
....
.$25,000
$50,000--$75,000 '
$100,000
$250,000
$303,396 8
$350,000
—
$500,000
$750,000.........
$1,000,000
$2,000,000
$3,000,000.
$4,000,000
$5.000,000
$6,000,000
.-
1939 3
$8
44
80
116
248
415
924
1, 589
2,489
8,869
18, 779
32,469.
128,294
164, 571
197, m
304,144
489, 09<:
679,04^:
1,449, 019
2,228, 994
3, 008, 99':
3,788, 99^
4, 578, 969
Present law
$38
95
190
209
228
247
265
. 285
380
589
798
1,045
1,577
2,185
4,047
6,394
9,082
24, 795
43, 092
63,128
191,340
237, 500
277, 790
407, 465
623, 59(
839, 715
1, 704, 215
7 2, 565, 000
7 3,420, 000
7 4,275, 000
7 5,130, 000
P e r c e n t of
t h e increase
tn t a x u n d e r
present l a w
House
over 1939
bill
removed
by
( H . R . 1)4
House bill
Effective rates
A.mounts of tas
N e t income
before personal
exemption
H o u s e bill
( H , R . 1) 4
$27
67
133
153
173
193
212
228
304
471
• 638
836
L262
1,748
3,238
5,115
. 7,266
19,836
34,474
50, 502
153, 072
190, 000
226,049
342, 074
535,449728,824
1, 502, 324
2, 275, 824
3,049,324
3,822,824
8 4, 590, 000
1939 3
Present
law
Percent
Percent
3.2
6.3
9.5
10.0
10.4
10.7
11.1
11.4
12.7
14.7
16.0
17.4
19.7
21.9
27.0
32.0
36.3
49.6
57.5
63.1
76.5
78.3
79.4
81.5
83.]
84.0
85.2
85.5
85.5
85.5
85.5
0.3
1.1
1.6
1.9
3.1
4.2
6.2
7.9
10.0
17.7
25.0
32.5
51.3
54.2
56.3
60.8
65.2
67.9
72.5
74.3
75.2
75.8
76.3
Percent
2.2
4.4
6.7
7.3
7.9
8.4
8.9
9.1
10.1
11.8
12.8
13.9
15.8
17.5
21.6
25.6
29.1
39.7
46.0
50.561.2
62.6
64.6
68.4
71.^
72.9
75.1
75.9
76.2
76.5
76.5
Percent
30.0
30.0
30.0
26.8
24.1
21.9
20.0'
20.0
20.4
21.6
22.2
22.5
23.7
24.7
25.9
26.6
27.6
31.1
35.4
4L2
60.7
65.1
64.2
63.3
65.5
69.0
79.1
86.1
90.2
93.0
98.0
NOTE.—Computations were made from unrounded figures and will not necessarily agree with figures
computed from the rounded amounts and percentages shown.
1 Internal Revenue Code, as amended by Revenue Act of 1945,
. ,
2 Assumes only 1 spouse has mcome.
3 Assumes maximum earned net income.
4 Assumes taxpayer is under 65 years of age.
* These income levels are within the area of the notch provision under the House bill. The 33.5-percent
reduction of present law tentative tax ends at $2,000 of net income before personal exemption and the 24percent reduction of present law tentative tax takes effect at $2,396.
8 Point at which 15-percent reduction of present law tentative tax takes effect under the House bill.
7 Taking into account maximum effective rate limitation of 85.5 percent.
8 Takmg into account maximum effective rate limitation of 76.5 percent.
231
REPORT OF THE SECRETARY OF THE TREASURY
TABLE D.—Comparison of net income after individual income taxes in 1939 with
present law ^ and the House hill (H. R. 1), for specified amounts of net income
M A R R I E D PERSON 2—NO D E P E N D E N T S
N e t income
before
personal
exemption
N e t income after t a x
Present
law
1939 3
$1,200........
$1,600—.—$2,000
$2,100«
$2,200«—...
$2,300 « . . - • . . . .
$2,396 «...- —
$2,500
—
$3,000
$4,000
$5,000
—
$6,000
$8,000
$10,000. — —
$15.000
$20,000
$1,200
1,600
2,000
2,100
2,200
2,300
2,396
2, 500
2,992
3, 956
4,920
6,884
7,752
9,585
14,076
18,411
°
$1,162
1,406
1,810
1,891
1,972
2,053
2,131
2,215
2,620
3,411
4,202
4, 955
6,423
7, 815
10,953
13,607
H o u s e bill
( H . R . 1)4
$1,173
1,434
1,867,
1,947
2,027
2.107
2,184
2,272
2,696
3.529
4,362
5,164
. 6,738
8,252
11, 762 ,
14,886
N e t income after t a x
N e t income
before
personal
exemption
1939 8
$25,000--—.
$50,000
$75,000
$100,000
$260,000
$303,396 8
$350,000
$500,000-.- —
$760,000...-.$1,000,000.-.$2,000,000....
$3,000.000....
$4.000,000...$5,000,000....
$6,000.000....
$22,511
41,131
66,221
67,531
121, 706
138,826
162, 806
196,856
260, 906
320, 956
650,981
771, 006
991.006
1,211,006
1,421,031
Present
law
$16,918
26,206
^1,908
36,873
68,661
66,896
72, 211
92,636
126, 411
160, 286
295, 786
7 435. 000
7 680,000
7 725, 000
7 870,000
H o u s e bill
( H . R . 1)4
$17, 734
30,164
40,626
49, 498
96, 928
113, 396
123, 962
157, 927
214, 662
271, 177
•497,677
724,177
960,677
1,177,177
8 1,410,000
1 Internal Revenue Code, as amended by the Revenue Act of 1946.
2 Assumes only one spouse has income.
3 Assumes maximum earned net income.
4 Assumes taxpayer is under 65 years of age. »
« These income levels are within the area of the notch provision under the House bill. The 36.5-percent
reduction of present law tentative tax ends at $2,000 of net income before personal exemption and the 24percent reduction of present law tentative tax takes effect at $2,396,
8 Point at which 15-percent reduction of present law tentative tax takes effect under House bill (H. R. 1).
7 Taking into account maximum effective rate limitation of 85.6 percent.
8 Taking into account maximum effective rate limitation of 76,6 percent.
T A B L E E . — E s t i m a t e d revenue loss f r o m each p r o v i s i o n of the H o u s e hill ( H . R . 1 ) ,
d i s t r i b u t e d hy net i n c o m e classes, i n c a l e n d a r y e a r 1 9 4 7
[In millions. A s s u m i n g income p a y m e n t s of $166 billion]
T o t a l tax liability
under—
N e t income classes
(iu thousands)
Present
lawi
House
bill
( H . R . 1)
Total
decrease
In tax
liability
from
present
law
$299.5
$206. 4
$93.1
$0-$l
2,839. 6
2. 033. 9
805.7
$l-$2 .
3, 692. 3
845.4
2,846. 9
$2-$3
1. 827.7 ' l , 4 n . 8 . 416.9
$3-$4
775.9
166.9
609.0
$4-$5
9,435.
0
7.108.0
2,327.0
Under 5
1. 042.1
276.9
L 318.0
$6-$10
1. 495.3
$10-$25
379.1
1,874. 4
1,157. 6
277.9
$25-$50
1. 435.5
224.1
$50-$100
1.183.6
969.5
167.3
916.2
747.9
$100-$250
64.8
274.1
328.9
$250-$500
32.2
$500-$!,000
234.6
202.3
30.7
276.2
246.6
$1,000 a n d over
6,124, 3
1, 442.0
$5 a n d o v e r - 7, 566. 3
Total
: . 17, 001.3 13. 232.3
3, 769.0
Decrease i n total tax liability from present law resulting from each provision of t h e H o u s e bill ( H . R . 1)
R e d u c t i o n of t e n t a t i v e n o r m a l tax a n d
surtax by—
33.5
percent 2
$89.9
"499.3
120.5
13.5
:9
724.1
724.1
$67 3
$273.4
210.9
33.3
2.1
519.7
619.7
24 percent 4
$0.4
475.9
326.0
152.8
957.1
263.6
374.4
276.6
223.5
167.1
6L2
20.8
8.6
1, 385. 7
2,342.8,
16 percent«
Additional
exemption
for persons
over 66
years of
age'8
$3.2
32.6
38.1
4L1
ILI
126.1
12.3
4,7
L3
.6
,2
$3.6
1L4
22.2
37.2
37.2
(7)
(7)
(7)
19.1
145.2
1 Intemal Revenue Code, as amended by the Revenue Act of 1945,
2 Apphcable to tentative tax of $200 or less,
3 Applicable to tentative tax of more than $200 but not more than $279.17,
4 Applicable to tentative tax of more than $279.17 but not more than $250,000.
6 Applicable to amounts of tentative tax exceeaing $250,000.
8 Under the House bill, exemptions of taxpayers who have attained the age of 65 are raised by $500. In
the case of joint returns, exemptions are raised by $1,000 where both husband and wife have attained the
age of 65 and each has $600 or more gross income. Taxpayers with gross uicome of $500 or more who qualify
for the special exemption of $500 must include in their gross income any amounts up to $500 received during
the taxable year as railroad retirement or social security.benefits (other than lump-sum payments), and
certain bther pension, armuity or retirement payments which are wholly tax exempt under preserit law.
7 Less than $50,000.
232
REPORT OF THE SECRETARY OF THE TREASURY
TABLE F.—Estimated number of taxable income recipients distributed hy the.various
rate reductions provided under the House hill (H. R. 1), in calendar year 1947
[Number of income recipients in thousands. Assummg income payments of $166 billion]
Number of taxable income recipients
Reduction of tentative normal tax and
surtax by—
33.5 percent 2
$67 3._..
_•
24 percent 4
15 percent *
Surtax net income classes
Total
$0 to $1,000
$1,000 to $1,395.83- .
$1,395.83 to $302,396.60
$302,396.60 andover
_
-.
_
.
-
Total-
Persons over
65 years of
Other taxage receiving able mcome
additional
recipients
exemption 1
24,847.2
8,5n.l
14.360. 2
Ll
1,098.8
601.2
309.6
(«)
23,748.4
7,909.9
14, 050.6
1.1
47,719.6
2,009.6
45,710.0
•
1 Under the House bill, exemptions of taxpayers who have attained the age of 65 are raised by $500.; In
the case of joint returns, exemptions are raised by $1,000 where both husband and wife have attained the age
of 65 and each has $500 or more gross income. Taxpayers with gross income of $500 or more who quahfy for
the special exemption of $500 must include in their.gross tncome any amounts up to $500 received during the
taxable year as raOroad retirement or social security benefits (other than lump-sum payments), and certain
other pension, annuity or retirement payments which are wholly tax exempt under present law." .
2 Applicable to tentative tax of $200 or less.
3 Applicable to tentative tax of more than $200 but not more than $279.17,
4 Applicable to tentative tax of more than $279.17 but not more than $250,000,
«AppHcable to amounts of tentative tax exceeding $250,000.
8 Less than 60.
TABLE G.—Estimated income payments, adjusted gross income, net income hefore
exemptions, and net income subject to surtax and to normal tax under present
law 1 in calendar year 1947
[In bilhons of dollars]
Total income payments
:
_.
Subtract: Portion of income payments not included in adjusted grossincome 2
^
25
Add: Portion of adjusted gross income not included in income payments 3
^____.
3
Subtract: Net adjustment
^
,
166
Total adjusted gross income
Subtract: Deductions
144
17
:
Net income before exemptions
.
Subtract:
Exemptions.
'__"
58
Income subject to alternative tax but not to surtax (applicable
to net long-term capital gains)
1
Subtract: Portion of net income before exemptions not subject to surtax
.,
Net income subject to surtax
Subtract: Partially tax-exempt interest subject to surtax but not to
normal tax
•
Net income subject to normal tax
^
22
127
/ 58
69
(*)
69
NOTE.—Eigures are rounded and will not necessarily add to totals.
1 Internal Revenue Code, as amended by the Revenue Act of 1945,
2 Includes Government transfer payments, nontaxable pay of armed forces, interest ahd dividend payments not currently taxable, and other exclusions.
3 Includes net capital gains and employees' contributions to Government retirement and social security
funds. .
4 Less than $50 million.
233
REPORT OF THE SECRETARY OF THE TREASURY
TABLE H.—Estimated number of taxable and nontaxable income recipients, their
incoriie and individual income-tax liabilities under present law,^ in calendar year
1947
r
'
[Assuming income payments of $166 billion]
Number of
income'
recipients
(thousands)
Total, all income recipients.
Tax
liability
(milhons)
Amount of
income
(millions)
65,300
2$127,300
$17,001
Nontaxable income recipients
Taxable income recipients...
16,755
48,546
213,267
2 114,033
17,001
Subject to surtax
--Subject to. normal tax
Subject to alternative tax
48,645
3 48, 545
37
59,114
)9,087
8 619
14,723
1,969
309
1 Internal Revenue Code, as amended by the Revenue Act of 1946.
2 Net income before exemptions.
8 The number of persons paying normal tax is estimated to be less than 500 smaller than the number paying
•surtax..
.
.
4 Surtax net income.
* Normal tax net ineome.
8 Net long-term capital gains subject to alternative tax.
TABLE I.—Estimated number of taxahle income recipients under present law ^ their,
surtax net income and combined normal tax and surtax, distributed by surtax net
income brackets, in calendar year 1947
[Assuming income payments of $166 billion]
Surtax net income brackets
(in thousands)
Taxable income recipients cumulated
from h i g h e s t
bracket
Number
(thousands)
$0-$0.5
$0.5-$1.0...
$1.0-$1.6..$1.6-$2.0...
$2-$4
$4-$6.-.-..
$6-$8
$8-$10.
$10-$12
$12-$14
$14-$16
$16-$18
$18-$20
$20-$22
$22-$26
$26-$32
$32-$38
$38-$44
$44-$50
$50-$60
$60-$70
$70-$80
$80-$90
$90-$100.—
$100-$160-.
$160-$200—
Over $200-.
Total.
644.6
707.7
871.4.
357.9
317.9
688.9
042.1
723.1
637.7
412.8
329.5
269.9
224.9
190.2
160.6
117.6
87.1
61.4
48.7
39.5
27.4
19.6
16.3
n.8
9.6
4,0
2.2
Percent
100.00
73.56
47.11
27. 52
15.07
3.48
2.15
1.49
1.11
.85
,68
.56
,46
,39
.33
.24
.18
.13
,10
.08
,06
,04
,03
,02
.02
.01
Surtax net income in
bracket
Amount
(millions)
$21,019. 5
14, 557.6
8,937.1
6,089.7
6, 562.1
2, 508.1
1,650.3
1,199.7
907.6
714.9
680.4
480.4
404.0
342.6
539.4
612.8
435,6
332.4
258,9
321.3
231.2
169.0
135.2
101.9
313.9
139.1
Percent
30.41
21.06
12.93
7.36
9.49
3.63
2.39
1.74
L31
1.03
,84
.70
.58
.50
.78
.89
.63
,48
,37
,46
.33
.24
.20
,16
.46
,20
.82
(3)
i9,114.3
100.00
Combined normal tax
and surtax in bracket *
Amount
(millions)
$3,993.6
2, 765.8
1,697.9
. 967.0
1,371.4
619.6
470.3
387.6
327.6
292.0
259.2
228.2
203.4
182.2
. 302.3
360.9
269.0
217.8
177.1
229.0
171.3
130.0
107.9
84.3
Percent
23.93
16.67
10.17
6.79
8.22
3.71
2.82
2.32
1.96
1.75
1.66
. 1.37
1.22
1.09
L81
2.16
1.61
1.30
1.06
1.37
L03
,78
.66
119.0
492.6
.61
1.69
.71
2.96
16,692.0
100.00
266.4
NOTE,—Figures are rounded and will not necessarily add to totals,
1 Internal Revenue Code, as amended by the Revenue Act of 1945.
2 Normal tax and surtax were obtained separately by applying the appropriate rates to normal tax and
surtax net income. Since normal tax net income is somewhat less than surtax net income, these amounts
will differ slightly from the result obtained by applying the combined rates to surtax net income.
8 Less than .005 percent.
234
REPORT QF T H E SECRETARY OF T H E TREASURY
T A B L E J,—Estimated number of taxahle income recipients under present law,^ their
net income hefore exemptions, surtax net income and total tax liability, distributed
hy net incom.e classes, i n calendar year 1947.
[Assuming n c o m e p a y m e n t s of $166 billion]
Taxable income
recipients
N e t income before
exemptions
Surtax n e t ' income
T o t a l tax liabihty 2
Amount
(millions)
Amount
(milhons)
Amount
(millions)
N e t income classes
(thousands)
Number
(thousands) P e r c e n t
$0-$l
$l-$2
$2-$3
$3-$4
$4-$5
- .
U n d e r $5
$5-$l0
$10-$25
$25-$50
$50-$100
$100-$250
$250-$500
$500-$l,000
$1,000 a n d over
Over $ 5 . - . — G r a n d total
Percent
Percent
4.2
25.9
30.9
13.9
5.2
$1,576.8
14, 946. 5
19,394.8
9, 472.6
3,944.0
2.3
2L6
28.1
13.7
6.7
$299.5
2, 839. 6
3.692.3
1,827.7
775.9
L8
16.7
21.7
10.8
. 4.6
91,382.8
, 80.1
49, 334.7
7L4
9,435.0
65. 5
7,628. 2
6, 920. 4
3, 426.1
2,185.6
1,392. 7
45L1
302.4
344.0
6.7
6.1
3.0
L9
L2
.4
.3
.3
6,107.0
6,328.3
3,174. 3
2, 018. 9
1, 222. 7
372.9
258.0
297.6
8.8
9.2
4.6
2.9
L8
.5
.4
.4
1, 318. 0
1, 874.4
1, 435. 6
1,183.6
915.2
328.9
234.5
276.2
7.8
11.0
8.4
7.0
5.4
L9
1.4
L6
6,352.3
20,138. 9
14. 322. 0
4. 655.5
1,333.2
13.1
4L5
29.5
9.6
2.7
$4, 738.6
29, 590.1
36, 257. 9 .
15. 903. 5
5,892. 7
46, 801.8
96.4
1,126. 9
470.2
IOL 2
32.7
9.8
L3
,4
.2
2.3
LO
.2
(3)
(3)
Percent
1,742.8
3.6
22, 650. 5
19.9
19, 779. 6
28.6
7, 566.3
44.6
48, 544. 6
100.0
114, 033. 3
100.0.
69,114.3
100.0
17, 001.3
100.0
NOTE.—Figures are rounded and will not necessarily add to totals,
1 Internal Revenue Code, as amended by the Revenue Act of 1945.
2 Includes normal tax, surtax, and alternative tax on net long-term capital gains.
3 Less than .05 percent.
235
REPORT OF THE SECRETARY OF THE TREASURY
TABLJE K . — E s t i m a t e d number of taxable income recipients a n d their total tax liahilitij
under present law,^ the House bill ( H . R . 1), a n d the House bill ( H . R. 1) without
the special provision for the aged,^ distributed hy net income classes, i n calendar
year 1947
[Assuming income payments of $166 billion]
N u m b e r of taxable
uicome recipients
(thousands)
Total tax hability 3
(mihions)
U n d e r H o u s e bill ( H . R . 1)
N e t income classes
(In t h o u s a n d s )
Present
law
House
bill ( H .
R . 1)4
Under
present
law
Amount
Amount
-
U n d e r $5.
6,352; 3 5, 992.3
20,138.9 19, 768. 9
14,322.0 14,227.0
4, 655. 5 4, 655. 5
1,333.2 1,333.2
$299.5
2,839.6
3,692.3
1,827. 7
775.9
$206.4
2,033.9
2,846.9
L411.8
609.0
46,801.8 45, 976.8
Over $5
Amount
Percent
distribution
$209.6
2,066.5
2,885.0
1,452. 9
620.1
$89.9
773.1
807.3
374.8
155.8
•2.5
21.3
22.3
10.3
4.3
Percent
distribution
$93.1
2.5
805.7
21.4
845.4 ' 22.4
415.9
11.0
106.9
4.4
9, 435.0
7,108.0
2, 327.0
61.7
7,234.1
2,200. 9
60.7
1,126.9
470.2
101.2
32.7
9.8
1.3
.4
•2
1,318.0
1, 874. 4
1, 435. 5
1,183.6
915.2
328.9
234.5
276.2
1,042.1
1.495. 3
1,157. 6
959.5
747.9
274.1
202.3
245.5
275.9
379.1
277.9
224.1
167.3
54.8
32.2
30.7
7.3
10.1
7.4
5.9
4.4
1.5
.9
.8
1,054.4
1, 500.0
1,158.9
960.1
748.1
274.1
202.3
245:5
263.6
374.4
276.6
223,5
167.1
54.8.
32.2
30.7
7.3
10.4
7.6
6.2
4.6
1.5
.9
.8
1, 742. 8
7, 566.3
6,124.3
1,442.0
38.3
6,143.4
1,422.9
39.3
48, 544. 6 47,719. 6 17,001.3 13.232. 3
3.769.0
100.0 13,377. 5
3, 623. 8
100.0
$5-$10 - . ^
1,126. 9
$10-$25
470.2
$25-$5{)
101.2
$50-$lb6
32.7
$100-$250
.....
9.8
$250-$500
1.3
$500-$!,000...
.4
$1,000 a n d o v e r
.2
G r a n d total
Decrease from
present law '
Decrease from
present law
Amount
$0-$l - - . .
$l-$2
$2-$3
$3-$4
.
$4-$5. - .
U n d e r H o u s e bill ( H . R . I )
w i t h o u t t h e special provision for t h e aged
1,742.8
NOTE.:—Figures are rounded and will not necessarily add to totals,
1 Internal Revenue Code, as amended by the Revenue Act of 1945.
2 Urider the House bill, exemptions of taxpayers who have attained the age of 65 are raised by $500. In
the case of joint returns, exemptions are raised by $1,000 where both husband and wife have attained the age
of 65 and each has $500 or more gross income. Taxpayers with gross income of $500 or more who qualify for
the special exemption of $500 must include in their gross income any amounts up to $500 received durtng
the taxable year as railroad retirement or social security benefits (other than lump-sum payments), and
certain other pension, annuity or retirement payments which are wholly tax exempt under present law,
3 Includes normal tax, surtax and alternative tax on net long-term capital gains.
4 The number of taxable tncome recipients under H. R. 1 without the special provision for the aged would
be the same as under present law.
T A B L E L , — E s t i m a t e d numher of taxable income recipients, their surtax riet income,
a n d combined normal tax and surtax under various exemptions, i n calendar year
1947
[Assuming income payments of $166 billion]
Taxable Income
recipients
Exemptions
Single
person
Married Dependcouple
ents
Number
(thousands)
Surtax n e t income
Combmed normal tax
a n d surtax
Decrease from
Decrease from
present l a w
present law
Amount
Amount
(mil- A m o u n t
(mil- A m o u n t
PerPerPerlions) lions)
(mil(milcent
cent
cent
lions)
lions)
Decrease from
present law
Number
(thousands)
$500 i . . . . $1,000 1. $500 1— 48, 544.6
$69,114.3
$16,692.0
$600
$1,200.. $600.... 43,816.7 4,727.9
9.7 60,820.9 $8,293.4 12.0 15.046.1 $1,645.9
9.9
$700
$1,400.. $ 7 0 0 . . . . 38,017.0 10, 527.6 21.7 53,851.7 15,262.6 22.1 13, 658.3 3.033.7 18.2
$ 8 0 0 - . . - . $1,600-. $400 2 . . . 39,491.6 9,053.0 18.6 52, 329.1 16, 785.2 24.3 13.383.2 3.308.8 19.8
$1,000—. $2,000.- $500 2 . . . 29.803.2 18, 741.4 38.6 41,771.8 27,342. 5 39.6 11, 280.6 5.411.4 32.4
1 Present law: Internal Revenue Code, as amended by the Revenue Act of 1945.
2 Assuming the first dependent of a single person would qualify the single person as a head of family,
entitled to a married couple's exemption.
TABLE IVI.—Estimated number of taxahle income recipients and their combined normal tax and surtax under various exemptions, distributed by
net income classes, in calendar year 1947
bO
00
[Assuming income payments of $166 billion]
E x e m p t i o n s for single persons, m a r r i e d couples, a n d d e p e n d e n t s , respectively
$500, $1,000, $500 ( P r e s e n t
law 1)
$700, $1,400, $700
$600, $1,200, $600
$800, $1,600, $400 2
$1,000, $2,000, $500.2
o
N e t Income classes ( t h o u s a n d s )
N u m b e r of
taxable
income
recipients
(thousands)
$0-$l
$l-$2.
$2-$3
$3-$4.
$4-$6
..
.
.
...
U n d e r $5
$5-$10-.
$10-$25
$25-$50
$50-$100
.
$100-'$250.$250-$500
$500-$1,000.$1,000 a n d over
Over $5
•
-------
Grand total.
Combined
normal tax
and surtax
(mihions)
N u m b e r of
taxable
. income
recipients
(thousands)
Combined
normal tax
and surtax
(millions)
N u m b e r of
taxable
income
recipients
(thousands)
Combined
n o r m a l tax
and surtax
(minions),
N u m b e r of
taxable
income
recipients
(thousands)
Combined
normal tax
a n d surtax,
(millions)
N u m b e r of
taxable
income
recipients
(thousands)
Combined
n o r m a l tax
and surtax
(mihions)
3,234.8
15,170. 0
12, 343. 9
4, 240. 2
1, 285. 4
$105.2
1,923.8
2, 659. 6
1, 368. 8
621.2
3,146.0
15,489. 5
13,175.8
4, 604. 2
1,333.2
$46.4
1,615.6
2, 578.7
1,446. 2
660.4
47.2
12,634. 5
9,817.1
4, 249. 2
1,312.5
$2.2
1,048.8
1,805.1
1,076. 2
536.3
7,928.4
36, 274. 2
6, 678. 6
37, 748.8
6, 347. 3
28,060. 4
4,468. 5
1, 244. 3
1,819.4
1, 352. 3
1,112.6
833.4
290.3
212. 5
• 253.0
1,126. 9
470.2
101.2
32.7
9.8
1.3
.4
.2
1,17L 6
1, 774.8
1,338. 9
1,107.3
831.8
290. 0
212. 4
253.0
1,126.9
470.2
101.2
32.7
9.8
1.3
.4
.2
1,199.1
1, 790.7
1,346.9
1,110.7
832.8
290.2
212.5
253.0
1,126.9
470.2
101.2
32.7
9.8
1.3
.4
.2
1,081. 5
1,717.2
1,325. 6
1,102.6
830. 2
289.8
212.3
253.0
6,352.3
20,138.9
14,322. 0
4, 655. 5
1,333.2
$299.5
2,839. 6
3, 692. 3
1, 827. 7
775.9
5,752.3
17, 549.8
12, 930. 2
4, 520. 3
1,321.3
$179.5
2, 332. 5
3,'134.1
1, 585.8
696.5
46,801.8
9,435. 0
42,074. 0
1,126. 9
470.2
101.2
32.7
- 9.8
1.3
.4
.2
1,318.0
1,864.5
1,365. 7
1,117.7
835.1
290. 5
212.5
253.0
1,126.9
470.2
101.2
32.7
•9.8
1.3
.4
.2
'
.....
1, 742. 8
7,257. 0
1, 742. 8
7,117.7
, 1, 742.8
6,979.8
1,742.8
7, 035. 9
1,742. 8
6,812.1
.
48, 544. 6
16, 692. 0
43,816. 7
15, 046.1
38, 017. 0
13,658.3
39, 491. 6
13, 383. 2
29,803. 2.
11, 280.6
o
w
Ul
o
>
no
>^
y^.
K
>
Ul
NOTE.—Figures are rounded and will not necessarily add to totals.
1 Internal Revenue Code, as amended by the Revenue Act of 1945.
2 Assuming the first dependent of asingle person would qualify the single person as a head of family, entitled to a married couple's exemption.
d
w
Kl
REPORT OF THE SECRETARY OF THE TREASURY
237
TABLE N.—Number of taxahle individual and fiduciary returns, tax and net income,
1913-45 and estimated for 1946-47
[Dollars in thousands]
N u m b e r of
returns
Year
1913
1914
1915
1916
1917
1918
1919
1920
19211922
1923
1924
1925
1926
1927'1928
1929
1930
.---
--
:
(0
(0
(0
362, 970
2,707,234
3,392,863
4, 231,181
5, 518,310
3, 589, 985
3, 681,249
4, 270,121
4, 489, 698
2,501,166
2, 470, 990
2, 440, 941
•2, 523, 063
2,458,049
2, 037, 645
Tax
N e t income
2 $28,254
(3)
2 41,046
(3)
2 67, 944
(3)
173, 387 $6, 037,233
4 795,381 510, 592, 987
1,127, 722 13, 892, 776
1, 269, 630 17, 691, 620
1, 075. 054 20,228, 959
719,387 13,409,685
861, 057 15, 043, 514
8 661, 666 17,497,383
704,265 19,468, 724
734, 555 17,471, 219
732,475 17, 422, 633
830,639 18, 090,065
1,164, 254 21, 031,634
1, 001, 938 20, 493, 491
476, 715 13, 692,584
Year
N u m b e r of
returns
Tax
N e t Incofne
1931-.
1,525, 546 $246,127 $9,297,018
1932
329, 962 7, 919,588
1, 936, 095
1933
374,120 7,372, 660
1, 747, 740
1934 . ..
1, 795, 920
611,400 8,343, 558
1935
657,439 10. 034,106
2, no, 890
1936
2, 861,108 1, 214, 017 14,218,854
1937
3, 371, 443 1,141,569 15,264,162
1938
3,048, 545
765, 833 12,671, 537
1939..
3, 959, 297
928, 694 15,803, 946
1940
7, 504, 649 1,496,403 23, 558, 030
1941
17, 587,471 3, 907, 951 45, 902, 884
1942
27, 718, 534 8, 926, 712 67, 060,862
1943
40, 337,293 714, 590,018 98,150,189
(3)
1944 prelim inary. 42, 446, 538 16,346, 568
(3)
1945
8 42,890,679 918,265,000
1946 9
39, 500,000 16,391, 000
(3)
1947 9
43, 500, 000 17, 001, 260114,033,302
NOTE.—Data for 1916-42 from "Statistics of Income"; data for 1943 and 1944 complied by the Bureau of
Internal Revenue.
1 Not available. The total number of taxable and nontaxable returns filed were as follows: 1913, 357,598;
1914, 357,515; and 1915, 336,652.
2 Receipts (Including fines, penalties, additional assessments, etc.) for the fiscal year ended June 30 Immediately fohowing, as shown In annual reports of the Commissioner of Internal Revenue.
3 Not available.
4 Includes war excess-profits taxes of $101,249,781 on individuals and $103,887,984 on partnerships.
« Tax base for .taxable returns with net incomes of $2,000 and over. There were 1,591,518 taxable returns
with net incomes of $2,000 and over, for which the tax amounted to $675^249,450.
6 Amount after the 25-percent reduction provided by sectlon^l200 (a). Revenue Act of 1924.
7 Excludes additions to liability under the Current Tax Payment Act of 1943 amounting to $2,555,894,000.
8 Obtained from Cohectors' Monthly Report to Commissioner of Returns Flled,
9 Estimated,
Exhibit 34
Statement of Secretary Snyder before the House Ways and ]Vleans Committee,
May 19, 1947, with reference to a comprehensive study of the tax system
I am glad to have this opportuhity to appear before the Ways and IMeans
Committee in connection vi^ith its proposed examination of the whole tax system.
This approach to the tax problem is in accord with the recoramendation for a comprehensive study which I made in my recent appearance before this committee
and again before the Senate Finance Committee. Only by looking at the tax
system as a whole is it possible to lay a sound foundation for future legislative
action. The task confronting us is of the greatest importance, because a soundly
conceived and well-balanced tax system can make a significant contribution to the
maintenance of prosperity.
The first requisite of such a tax system' is that it should produce adequate
revenue to balance the budget and to provide a substantial payment on the public
debt, in order to sustain the confidence of the public in the integrity of the Government's obligations and its financial strength. As Secretary of the Treasury,
I am responsible for the management of the public debt and I am keenly aware
that the Federal Government's securities are an important part of the assets of
banks,' insurance companies, and other financial institutions that serve the public
as the repositories of its savings. IVEoreover, tens of millions of persons are
direct owners of Federal securities. We have a great responsibility to build a
tax system which will preserve the fundamental soundness oiour financial system.
As a first step toward the development of a postwar tax system, facts and
evidence should be assembled for the consideration of both the executive and
legislative branches of the Government. This information will come from the
hearings that are being initiated today and also from the continuing technical
research work of the tax staffs of the Treasury Department and the Joint Committee on Internal Revenue Taxation. Later, when this necessary .mformation is at
hand, a sound tax program can be developed.
238
REPORT OF THE SECRETARY OF THE . TREASTJRY
By beginning early, as the committee has, we shall have time to make a
thoroughgoing study of the present tax system, to consider carefully a large nuniber of possible revisions, and to work out a well-balanced program. A program
can be outlined first in broad terms and the final details worked out as the budgetary and economic situation grows clearer. When the time comes to draft
legislation, measures already agreed upon can be taken up in the order of their
priority. It is highly unlikely that the fiscal and economic situation will warrant
enactment of all the ultimately desirable revisions at the same time. But advance
planning and study will make it possible to proceed in an orderly fashion without
prejudicing any necessary part of the program and without the danger of reducing
the revenues too rapidly.
With your permission, I should like to restate the principles that I believe
should guide our studies and to call attention to a number of tax problems that
need careful consideration. It is not my intention today to make recommendations on any specific tax question.
I believe that a sound tax system should meet the following essential tests.
The tax system should produce adequate revenue. It should be equitable in its
treatment of different groups. It should interfere as little as possible with incentives to work and to invest. It should help maintain the broad consumer
markets that are essential for high-level production and employment. Taxes
should be as simple to administer and as easy to comply with as possible. While
the tax system should be flexible and change with changing economic conditions,
it should be possible to achieve this flexibility without frequent revisions of the
basic tax structure, A stable tax structure, with necessary flexibility, confined
largely to changes in tax rates and exemptions, will make it easier for business
and Government to plan for the future.
Before going on to mention the areas that I believe need special study, I should
like to repeat my firm conviction that at this time we have a unique opportunity
to modernize the Federal tax system. We are nearing lower peacetime levels of
Government expenditures and continuing high levels of national income and
production. A period of tax reduction is approaching. But in order to take full
advantage of our opportunity to modernize the tax system we must make careful
use of the available margins of surplus. The surplus must be divided judiciously
between debt retirement and tax reduction. The tax reductions should be allor
cated carefully among rate reductions and a large number of structural revisions.
The development of a modern tax system that will serve America best will require
the cooperation of the legislative and executive branches of the Government and
of the taxpayers and the public generally. We need also to enlist, and I am sure
we shall get, the wholehearted cooperation of the States and localities.
In my appearances before your committee and the Senate Finance Committee,
I indicated that the technical staff of the Treasury Department has under way
studies on some twenty major matters that will require attention in any comprehensive revision of the tax system. These include studies on business taxes, individual income taxes, excise taxes, estate and gift taxes, and social security taxes.
If the committee should so desire, I will submit these studies to it as they are
completed, I again offer your comniittee the cooperation of the entire tax staff
of the Treasury Department in connection with the important task of developing
a sound tax system that will make a major contribution to the future progress of
this country.
•
I wish now to comment briefly on each of the major tax items under study in
the Treasury Department.
BUSINESS TAXES
Revision in the business tax field should be designed to achieve the greatest
feasible uniformity of treatment of different forms of business, to promote a soured
competitive system, arid to eliminate any barriers to a high level of investment.
Among the important business tax matters being studied are the following:
1. Corporate rates.—Both the level of corporation tax rates and the method
and extent of graduation need to be carefully examined. Under present law the
corporate income tax begins at a rate of 21 percent on net incomes of less than
$5,000 and is graduated to a rate of 38 percent on the entire income if in excess ;of
$50,000.
The level of corporate tax rates must be considered in the light of over-all
revenue requirements and action taken on other major taxes, with due regard to
any revisions in the structure of the corporation tax. The present method of
REPORT OF THE SECRETARY OF THE TREASURY
239
graduation iraposes a high rate of 53 percent on income in the so-called notch
area between $25,000 and $50,000, to bring the effective rate on the whole income
up to 38 percent at $50,000, Qne question that merits consideration is whether
this method of graduation should be continued or whether the so-called notch
rate should be eliminated and a system of bracket graduation similar to that used
for the individual income tax substituted,
2. Taxation of dividends.—Under the present law a corporation pays an income
tax on its entire net income and stockholders are taxed on their dividend income
at the regular income tax rates,. This system of taxing corporate profits tias been
widely criticized as involving double taxation. It is contended that this is both
inequitable and damaging to investment incentives. This is a question about
which there is no general agreement. An important issue in postwar tax policy
relates to the extent of so-called double taxation of distributed corporate profits
and the question of the desirability of reducing or eliminating any existing double
taxation.
On the assumption that the corporation income tax rests at least in part on
stockholders, a number of plans have been advanced for the reduction or elimination of double taxation. These plans are of three basic types. One approach
would be to eliminate the corporate income tax and to tax stockholders, like
partners, on their full portion of corporate profits. A second approach would be
to continue the corporate income tax but to grant Corporations a tax credit or
deduction for dividends paid. A third approach would be to continue the corporate income tax on both distributed and undistributed profits but to grant stockholders an allowance or credit with respect to dividends received. The Treasury
Department has completed and released a technical study of a number of such
plans for the taxation of corporate profits.
The taxation of corporate income raises important and exceedingly complex
problems. The existing arrangements and alternative approaches need to be
carefully analyzed to^ determine their advantages and disadvantages with respect
to tax equity, economic effects, and administrative considerations.
3. Small business.—The vital importance to the economic system of a vigorous
and healthy group of small business enterprises makes i^ essential to consider
carefully the impact of present taxes on small business. Some spokesmen for
small business believe that the present tax system discriminates against smaller
enterprises and imposes unnecessary impediments to their establishment and
growth. Others take the position that an attempt should be made to liberalize
the tax system in order to provide special advantages for new and small enterprises. Among the proposals advanced for the tax relief of small business are
suggestions for tax rate revisions, tax exemption for new enterprises, tax exemption or deduction for investment iri small business, and more liberal treatment for
operating losses and depreciation allowances. These and other proposals for the
special benefit of both incorporated and unincorporated business firrns raise
difficult problems which merit extensive investigation.
4. Tax-exempt organizations.—rBecause of the continued growth of the scope
and volume of activities of tax-exempt organizations, there is need for reexamination of the tax status of these organizations. It has been charged that in some
instances the present treatment discriminates unfairly against taxable enterprises.
5. Elimination of discrimination among various forms of doing business.—In a
free competitive econorny business is conducted in a variety of forms. Sole
proprietorships, partnerships, and corporations can all make a significant contribution to economic progress. It.is important that taxes create no unnecessary
obstacles to the carrying on of business in the forms best adapted to different
situations. At the present time, there are significant differences in taxes on incorporated and unincorporated businesses, depending on the size of the business
income, the other income of the business owners, and the portion of the profits
retained in the business. While complete uniformity of tax treatment of proprietorships, partnerships, and corporations is impracticable, the present tax
system needs careful examination to determine whether existing differences in
treatment are justified.
6. Business loss offsets.—Opportunities for offsetting business losses against
taxable income are a sigriificant factor in determining the attractiveness of risky
investment and in arriving at an equitable basis of. taxing fluctuating incomes.
Under present law, net operating losses sustained in any one year may be carried
back and applied against the income of the two preceding years and any balance
not absorbed may be carried forward as a deduction from income of the 2 years
immediately following the year of loss. In connection with postwar tax revisions,
240
REPORT OF THE SECRETARY OF THE TREASURY
it is important to consider whether the present loss offset period is long enough.
Another important problem is to determine whether the present system of carrybacks and carry-forwards is preferable to a system which relies solely on carryforwards.
7. Depreciation,—The speed and certainty of recovery bf capital invested in
depreciable assets have an important bearing on the risks of investment. Consequently, it is necessary to give attention to present depreciation and practices
and to various proposals for their modification. Some taxpayers complain that
the present system of depr.eciation allowances is too rigid and urge that they should
be given more leeway in estimating the useful lives of their depreciable assets
and more freedom of choice in selecting the method of taking depreciation. They
contend that the individual taxpayer is in a better position than the tax administrator to estimate the life span of a particular asset.
• .,
Some advocate a change in the law that would arbitrarily shorten the write-off
period so that the capital invested in depreciable assets will be recovered over a
period which is less than their probable useful life. They assiert that accelerated
depreciation would reduce the risks of large capital expenditures in- fixed assets.
To the extent, however, that it understates income during periods when a taxpayer is increasing his capital investment, it would result in postponement of tax.
8. American business abroad.—American corporations and individuals doing
business in foreign countries are normally subject not only to American taxes but
also to those of the foreign courftries. Such individuals and enterprises, therefore, may become subject to excessive tax burdens unless some allowance is made
in the American tax law for taxes paid abroad. In the past, American corporations
have been allowed to credit against their American tax liabilities on income derived from business abroad the taxes which theyhave paid to foreign countries.
In addition, a number of special relief provisions have been enacted from time
to time designed to meet particular problems arising in various foreign countries
and areas. For example, domestic corporations qualifying as Western Hemisphere corporations have since 1942 been exempt from corporation surtax. Also,
taxpayers doing business in the possessions of the United States have been exempted from Federal income taxes arid a special type of exemption is provided for
China Trade Act Corporations, Individuals resident abroad are allowed a complete exemption oh their wages and salaries earned abroad and a partial exemption
where their income is derived from operating a business.
American corporations and individuals doing business abroad should not be
placed at a disadvantage in their competition with foreign firms. At the same
time, so long as they are American citizens and businesses, they should bear their
fair share of domestic tax burdens. It is, therefore, highly important that we
analyze the combined effect of United States and foreign taxes with a view both to
minimizing any existing discrimination and inequities and to ascertaining whether
such taxpayers are bearing their fair share.of taxes.
9. Intercorporate problems.—Attention should be given to the desirability of
the present 2-percent additional tax on consolidated corporate returns and the
85-percerit credit for intercorporate dividends received. The special tax on consolidated returns was intended as an offset to the tax advantages accruing from the
offsetting of losses of one corporation against the gains of another and the avoidance of the tax on. intercorporate dividends which would otherwise have been
paid on dividends received by one member of an affiliated group from another.
The tax on intercorporate dividends was intended to prevent the evasion of the
graduated corporate income tax by setting up a series of small corporations in
order to obtain the lower rates applicable to small corporations. It is necessary
to determine whether these taxes have achieved the purposes they were intended
to serve and whether they should be retained in the postwar tax structure.
INDIVIDUAL INCOME TAXES
The individual income tax is, and should remain, the mainstay of the Federal
revenue system. Hence, it is most iinportant to achieve a fair and equitable
distribution of the taxes while maintaining broad consumer markets and incentives to work and invest. Among the major tax problems in this field now under
study in the Treasury Department are the following:
10. Individual rates.—The financial demands of the war forced us to raise individual income tax rates in all brackets to very high levels. The entire rate
schedule should be reconstructed with a view to achieving an equitable distribu-
REPORT OF'THE SECRETARY OF THE TREASURY
241
tion of taxes and maximum production under peacetime conditions. The rates
must be reexamined to determine their effects on incentives to work and invest
and their effects on living standards and purchasing power. Revision of the individual income tax rates should be coordinated with other changes in the income
tax such as personal exemptions and the treatment of family incomes and with
changes in other taxes.
11. Personal exemptions.—As a part of the war finance program, personal exemptions under the individual income tax were sharply reduced. At the present
time a taxpayer is allowed an exemption of $500 for himself, for his wife, and for
each of his dependents. Thus, a single person now has an exemption of $500; in-,
1939 his exemption was $1,000. A married couple without children now has an
exemption of $1,000 as compared with $2,500 in 1939. While exemptions for
single persons and married couples have been reduced, the allowance for dependents has been increased from $400 in 1939 to the present level of $500. War
and postwar increases in the cost of living have further sharply reduced the real
purchasing power represented by the personal exemptions.
The level of personal exemptions determines the coverage of the individual income tax and affects in an important way the role of the tax in the revenue system
as a whole. Consideration needs to be given to the question whether an adjustment should be made to take account of higher living costs. It is also necessary
to reexamine the alinement of exemptions as between single persons, married
couples, and dependents.
12. Family income.—Vnder present law there are inequalities in taxation of
families arising out of the fact that couples in community property States are
perniitted to divide their community earned and''in vestment income for Federal
income tax purposes, thereby reducing their taxes under the progressive rate
schedule. There are also inequalities arising out of the fact that in all States
recipients of investment income have' opportunities for splitting that income
among members of the family whereas in noncommunity property States earned
income is taxed to the earner. The tax value of income splitting varies with
size of income. Couples with not more than $2,000 of net income after exemptions can realize no tax beriefit from income splitting, whereas under the graduated rates couples with large incomes may realize substantial benefits. These tax
savings have created difficult administrative problems and endless litigation in
the field of family trusts, family partnerships and various other types of property
assignments.
. Over a period of years the Congress and the Treasury have both ^considered
mearis of eliminating or reducing the resulting tax inequalities among similarly
situated families, but no adequate solution of the problem has been adopted. One
limited approach that has been considered in the past would be to eliminate the
tax advantages of the community property system by taxing earned income to the
earner and other community property income to the spouse who exercises management and control. A more comprehensive approach to the problem, which
has also received congressional attention in the past, would be to require joint tax
returns by husbands and wives. Still another approach, which has only recently
been given widespread attention, would be to eliminate tax differences resulting
from income splitting between husbands and wives by granting couples in all
States the option to divide their combined iricomes for tax purposes.
The existing inequalities in taxes on family incomes are significant and call for
careful consideration of this problem. It must be recognized that the various
solutions that have been suggested would have different but important effects on
the revenue yield of the income tax and on the distribution of taxes among different
income groups and between married and single persons. It is, therefore, desirable
to consider the family income problem in connection with any comprehensiye
revision of the individual tax.
13. Pensions and annuities.—There are now several million persons who receive
various forms of pensions and annuities. With the wartime reduction in personal
exemptions and the recent increases in the cost of living, the tax treatment of
pensions and annuities has become an increasingly important problem. Under
existing law, social security and railroad retirement benefits and certain other
kinds of pensions and annuities are excluded from taxable income. These exclusions raise important problems of tax equity. With respect to taxable annuities,
"there should be a reexamination of the present method of allowing the tax-free
recovery of the annuitant's capital contribution. The taxation of pensions and
annuities is closely related to proposals for special treatment for aged persons
iinder the individual income tax.
-
242
REPORT OF THE SECRETARY OF THE TREASURY
14. Averaging.—Under graduated tax rates, taxpayers with widely fluctuating
incomes are required to pay substantially larger amounts of tax than those with
stable incomes totaling the same amount over a period of years. Moreover,
many taxpayers lose the full benefit of their individual income tax exemptions
because in some years they do not have income equal to the allowable exernptions.
Such taxpayers are also taxed more heavily over a period of years than those- with
stable incomes. These inequalities in taxation raise the question whether it is
desirable to adopt some method of averaging income over a period of years for
purposes of the individual income tax.^ Averaging may have a significant bearing
^ both on tax equity and on the effects of taxation on incentives to invest in risky
business ventures. The adoption of averaging would result in a substantial loss
of revenue, and the.effects of such a loss in revenue must be compared with the
effects of other tax revisions.
\
15. Credit for earned income.—The Federal income tax has provided a credit for
earned income during the years 1924-31 inclusive and again in the years 1934-1943
inclusive. The earned income credit, however, was comparatively sraall in
ainount, and in the Revenue Act of 1943 it was eliminated, mainly on the grounds
that the credit was not large enough to justify the complications that it introduced
into the tax system. There have, however, been a number of proposals for reinstituting a credit for earned income under the individual income tax. Some proponents of an earned income credit view it primarily as a means of reducing taxes
on wage earners, whereas other advocates of an earned income credit are concerned
primarily with its effects on the incentives of business executives.
16. Allowances for life insurance premiums and other savings.—There have been
proposals to allow a limited deduction under the individual income tax for hfe
insurance premiums. Proposals have also been made to allow a deduction for a
limited amount of earned income invested in Federal securities. If such ajlowknces were granted it would probably be necessary to consider a corresponding
general allowance for other forms of savings, in order to prevent unfair discrimination between individuals investing their savings in different ways. These proposals for special allowances for saving raise basic equity questions and economic
issues as to their effect on savings, investment and consumption.
17. Capital gains and losses.—Under present law gains on capital assets held
by individuals and corporations over 6 months are taxed at rates which do not.
exceed a maximum of 25 percent. Losses on such assets are allowed only to the '
extent of capital gains, except in the case of individuals such losses may be offset
against ordinary income to the extent of $1,000 each year. A 5-year carry-over
of unabsorbed capital losses is allowed.
The tax treatment of capital gains and losses, it has been contended, has a
considerable effect on the securities market and the supply of capital, A great
many problems have arisen as the result of taxpayers' efforts to convert ordinary
income into capital gains entitled to the lower tax rates. The basis for taxing
capital gains at lower rates than other income and the limitation on the deductibility of capital losses should be reexamined.
EXCISES
18. Revision of excise taxes.—The Federal Government now imposes excise
taxes on more than 50 commodities or services, most of which were substantially
increased or newly imposed to help in the financing of the war. The revision of
the excise taxes raises the important pohcy issue of how large a portion of the
total revenue should be raised from excise taxes. This question is closely related
to such matters as the level of income tax exemptions. It is now appropriate to
reexamine these excises with a view to fitting them together into a coherent
system adaptable to our peacetime requirements. Each of the excises imposed
should be carefully considered with a view to. reducing or eliminating those which
are extremely regressive, which enter into business costs, which are unduly
burdensome on profits of particular industries, or which are unusually difficult
to administer. Revisions of particular taxes wiU have to be studied in detail so
that any changes made will be appropriate in light of the competitive conditipns
in the various industries.
19. Discrimination hetween domestic and imported goods.—Last year your
committee gave consideration to the problem of making certain imported merchandise subject to the same internal revenue taxes as similar merchandise of domestic
origin and referred it for study to a group consisting of the Joint Committee on
Internal Revenue Taxation, the State Department, the Tariff Cominission, and
REPORT OF THE SECRETARY OF THE TREASURY
243
the Treasury. Consideration of this problem'^has involved an analysis of the
treatment of such imported products as beer, lubricating oil, and numerous
products containing alcohol including medicinal preparations, toilet preparations,
flavoring extracts, fruits, and food colorings. Determining what constitutes
discrimination is complicated by the nature of the tariff schedules which in some
cases provide specific rates that may have been intended to compensate for the
absence of excise taxes ori imported products. The interrelationship between,
excises and tariffs thus tends to raise questions involving this country's pohcies
with respect to international trade agreements.
ESTATE AND GIFT TAXES
~"
20. Revision of structure.—In the estate and gift tax field there has long been a
need for an intensive study and legislative revision of the basic structure, particularly with respect to the relationship between the two taxes and their mutual
rela;tionship to the income tax. For the past 3 years the Treasury Department,
with the assistance of an advisory committee of prominent tax. attorneys, has
been exploring the problems in this field, with a view to preparing a comprehensive report for consideration by the Congress. This important task is nearing
-completion and the report is in the final stages of preparation. It will contain a
detailed analysis of the problems involved and recommendations for a revision
of the estate and gift taxes, the adoption of which, it is beheved, would greatly
increase the uniformity, simplicity, and equity of these taxes.
SOCIAL SECURITY TAXES
21. Extension of coverage.—The financing of social security and its coverage
raise certain important problems which will need consideration in connection with
the development of the postwar tax system. As a result of a request of July 27,
1946, from IVIr. Doughton, then chairman of this committee, the Treasury Department has been carrying on a study of the problems that would be associated with
the extension of coverage for old-age and survivors insurance. Attention has been
directed primarily to the difficult technical and administrative problems involved
in developing feasible methods for covering self-employed persons and agricultural arid domestic workers.
The problems raised in connection with the coverage of both of these groups
differ substantially from those involved in the coverage of workers in industry
and commerce. At present social security taxes are imposed on wages, the employer withholding the employee tax and remitting it together with the employer
tax. In the case of the self-employed, this system is not applicable because there
is no employer-employee relationship giving rise to wages, and it is necessary to
establish the base on which the self-employed should be taxed and how the tax
should be reported to the Bureau of Internal Revenue. Both of these problems
raise numerous questions, particularly with respect to the self-employed having
very low incomes who are not subject to income tax. While the employeremployee relationship generally exists in the case of agricultural and domestic
workers, the majority of the employers either are not accustomed to filing tax
returns or are not engaged in business. IMoreoverj employment generally is
highly irregular, prevailing wages are frequently lower than in industry and may
be paid partly in kind. As a result, provision may need to be made for different
techniques in order to achieve adequate coverage of these groups. Substantial
progress has been made toward recommendations for the solution of these problems
TECHNICAL MATTERS
In addition to the tax matters of broad and general importance to which I have
briefly referred, there are a substantial number of needed technical adjustments of
considerable significance that have accumulated during the war years. The
Revenue Act of 1942 was the last piece of major legislation in which the Congress
undertook to go into such problems to any great extent. Many of these matters
pose policy questions of some magnitude and their proper solution will frequently
involve technical problems of considerable difficulty and complexity. Among
the more important of these items are such matters as the treatment of (a) war
losses, which involves primarily the treatment of recoveries of properties lost
during the war; (h) cancellation of indebtedness, which is a matter requiring general
reconsideration and overhauling; (c) certain types of recapitalizations and reorganizations, to which there appears to be increasing resort as a method of attempting
764788—48—-17
;244
REPORT OF ,THE SECRETARY OF THE TREASURY
to avoid tax on corporate-distributions in situations^ where there are accumulated
corporate earnings; (d) provisions ofthe tax law, the opera,tion of which is affected
by the termination of hostilities and of the war; (e) occupational expenses,., a
problem which in^^olves primarily the difficulty of drawing satisfactory lines
between; the nondeductible personal expenses of individuals and their deductible
business outlays; (/) research and development expenses, involving the question
.of permitting greater flexibility in the determination of whether such costs should
be capitalized or deducted as current expenses; (g) capital gains and losses, in
which the problem relates primarily to use of the. present provisions, such,as
section 117 (j), in certain instances for tax avoidance purposes; and (h) a number
of administrative provisions which require amendment in order to facilitate the
administrative operations of the Bureau of Internal Revenue and assist taxpayers,
such as elimination of oath requirements on certain, return forms, correction of
certain statute of limitation provisions, elimination of burdensome and unnecessary reports of small refunds, elimination of- irrevocability of the election of the
taxpayer with, respect to the standard deduction, improvenient of the enforcemerit
of reporting and paying by employers of tax collected from their employees under
the withholding system, and similar mattiers.
. These items are illustrative of a number of pressing technical and administrative
problems which the Treasury and the taxpayers have encountered in the operation of the code. ^
•
•
' In conclusion I believe that we should approach the important task of postwar
tax revision with an open mind. We need to study and analyze all the major
matters that I have mentioned and many more that will arise upon further
exploration. We should scrutinize carefully all the present sources of revenue to
ascertain whether they are in proper balance. We should also explore all possible
sources of new taxes which upon investigation may "prove meritorious, and which
may relieve pressure in other areas.
The development of a sound postwar tax system constitutes one of the most
important steps towards the assurance of continuing prosperity in this country,
if production is to continue to increase, if the American standard of living is to
improve in the future as it has in.the past, the tax system must yield the needed
revenue without impeding business and work iricentives, without restricting
investment and without weakening consumer riaarkets. I wish again to express
my pleasure in appearing before this committee as the work is being initiated on
a fundamental revision of the American tax system.
Exhibit 35
Message from the President, June 16, 1947, returning without approval the bill
(H. R. 1) to reduce individual income tax payments
To the House of Representatives:
I return herewith, without my approval, H. R. 1, entitled "An act to reduce
individual income tax payments."
The right kind of tax reduction, at the right time, is an objective to which I am
deeply committed. But I have reached.the conclusion that this bill represents
the wrong kind pf tax reduction, at the wrong time. It offers dubious,, ill-apportioned, and risky beriefits at the expense of a souud tax policy and is, from the
standpoint of Government finances,, unsafe. Proposals for tax reduction must
be examined in the light of sound and carefully related fiscal and economic policies.
Unless, they are consistent with the demands of such policies, they should not be
approved.
In my Budget Message of January 10, 1947, I said:
As long as business, employment, and national income continue high, we should maintain tax revenues at
levels that will not only meet current expenditures but also leave a surplus for retirement of the public debt.
There, is no justification now for tax reduction.
,
Developments since Jariuary do not warrant a; change in that conclusion.
Total employment in May increased by a million and a half over that in April, and
the total number now employed is over 58,000,000. The nuriiber of unemployed
is now less than 2,000,000, practically a peacetime minimum. Income payments
to individuals are estimated to be at the record annual rate of $176,000,000,000.
Department store sales in May were up 6 percent over April and equaled the alltime high in dollar volume. The number of houses begun by private enterprise
REPORT OF THE SECRETARY OF THE TREASURY
245
in May was the largest in any month since VJ-day. Despite many gloomy predictions, there is no convincing evidence that a recession is imminerit.
'•• Ample evideiice points to the continuation of inflationary pressures. Tax
reduction now would increase them. If these pressures are long continued, and
if essential readjustments within the price structure are long deferred, we are
likely to induce the very recession we seek to avoid.
Reductions in income tax rates are not required now to permit necessary investment and business expansion. There is no shortage of furids for this.purpose in
any wide sector of bur economy. As a matter of fact, the amount of liquid funds
iri the hands of corporations and individuals at the present time is nearly $200,000,000,000. Under these circumstances, tax reduction is not now needed to provide
additional funds for business expansion.
The arguraent is made that the funds added to consumer purchasing power
through this tax reduction are needed to maintain employment and prbduction
at maximum levels.
It is true, as I have pointed out many times, that the purchasing power of large
groups of our people has been seriously reduced. We must take every step
possible to remedy the disparity between prices and the incomes of the rank and
file of our people, so as hot to put brakes on our continued prosperity and lead us
toward a recession. Tax reduction as proposed in H. R. 1 is not the proper way
to remedy the current price situation and its effect upon consumers and upon
prospective employment. Necessary adjustments in incomes, production, and
prices should be made by wise policies and improved practices of business and
labor, not by hastily invoking the fiscal powers of Government on a broad scale.
The time for tax reduction will come when general inflationary pressures have
ceased and the structure of prices is on a more stable basis than now prevails.
How long it will take for this point to be reached is impossible to predict. Clearly
it has not been reached as yet. Tax reduction now would add to, rather than
correct, maladjustments in the economic structure.
Sound fiscal policy also requires that existing tax rates be maintained.for the
present. I have always been keenly aware of the necessity for the utmost economy in Government and of the need for a progressive reduction in Government
expenditures to the greatest extent possible consistent with our national interests.
However, necessary experiditures for essential Government operations are still
high. We are still meeting heavy obligations growing out of the war. We continue to be confronted with great responsibilities for international rehef and
rehabihtation that have an important bearing on our efforts to secure lasting
peace. We are still in a transition period in which many uncertainties continue.
In the face of these facts, common prudence demands a reahstic and conservative
management of the fiscal affairs of the Government.
A time, of high employment and high prices, wages, and profits, such as the
present, calls for a surp.lus in Government revenue over expenditures and the
application of all or much of this surplus to the reduction of the public debt.
Continuing public confidence in Government finances depends upon such a policy.
If the Governmerit does not reduce the pubhc debt during the most active and
inflationary periods, there is httle prospect of material reduction at any time,
and the country would, as a result, be in a poorer position to extend supports to
the economy should a subsequent deflationary period develop.
With the present huge public debt, it is of first importance that every effort
now be made to reduce the debt as much as possible. If H. R. 1 were to become
law, the amount available for debt retirement would be entirely too low for this
period of unparalleled high levels of peacetime income and employment.
The integrity of the public debt is the financial bedrock on which our national
economy rests. More than half of the American people are direct owners of
Government securities. A major portion of the assets of banks, insurance companies, and trust funds is invested in Government bonds. To maintain the
integrity of the public debt, we must now reduce it by substantial amounts.
In addition to the fact that this is not the time for tax reduction, there is a
fundamental objection to this particular bill. An adjustment of the tax system
should provide fair ahd equitable relief for individuals from the present tax
burden, but the reductions proposed in H. R. 1 are neither fair nor equitable.
H. R. 1 reduces taxes in the high income brackets to a grossly disproportionate
extent as compared to the reduction in the low income brackets. A good tax
reduction bih would give a greater proportion of relief to the low income group.
H. R. 1 fails to give relief where it is needed most. Under H. R. 1, tax savings
to the average family with an inconie of $2,500 would be less than $30, while taxes
246
REPORT OF THE SECRETARY OF THE TREASURY
on an income of $50,000 would be reduced by nearly $5,000, and on an income of
$500,000 by nearly $60,000. ,
Insofar as ''take home" pay is concerned, under H. R. 1, the family earning
$2,500 would receive an increase of only 1.2 percent; the.family with an income of
$50,000 would receive an increase of 18.6 percent; and the family with an income
of $500,000 would receive an increase of 62.3 percent.
If H. R. 1 were to become law, the inequity of its provisions would be frozen
into the tax structure. The reduction in Government receipts resulting from this
bill would be such that the Government could ill afford to make fair tax reductions
at the proper time in the form of a carefully considered revision of our entire tax
structure.
Now is the time to plan for a thoroughgoing revision of the tax system: We
should consider not only individual income tax rates but also the level of personal
exemptions and many other adjustments in the personal income tax structure.
We should also consider changes in excise tax laws, gift and estate taxes, corporation taxes, and, in fact, the entire field of tax revenues. Such a program of tax
adjustment and tax reduction should be geared to the financial and economic
needs of this country. It will be an important contribution to economic progress.
The timing of such a program is highly important to achieve economic stability,
to promote the investment of capital, and to maintain employment, purchasing
power, and high levels of production.
For the compelling reasons I have set forth, I return H. R. 1 without my
approval.
HARRY S. TRUMAN.
T H E WHITE HOUSE, June 16,
1947,
Exhibit 36
Message from the President, July 18, 1947, returning without approval the bill
(H. R. 3950) to reduce individual income tax payments
To the House of Representatives:
I return herewith, without my approval, H. R. 3950, entitled "An Act to
reduce individual income tax payments."
The provisions of this bill are identical with those of H. R. 1 except that this
bill would not become effective until January 1, 1948, whereas H. R. 1 would
have become effective on July 1, 1947.
I returned H. R. 1 to the House of Representatives on June 16, 1947, without
my approval, stating that it represented the wrong kind of tax reduction at the
wrong time.
This is still the wrong kind of tax reduction and this is still the wrong time to
provide for tax reduction.
.
The present bill is not consistent with sound fiscal policy. As I have stated
to the Congress on previous occasions, while business, employment, and national
income continue high, we should maintain tax revenues at levels that wiU meet
current expenditures and also leave a surplus for retirement of the.public debt.
No other course is consistent with realistic and conservative management of the
fiscal affairs of the Government.
Since H. R. 1 was disapproved, there has been no lessening of the need to make
substantial payments on the public debt. Maintaining the integrity of this debt
is one of the primary obligations of the Government. I repeat that if we do not
reduce the public debt b y substantial amounts during a prosperous period, such
as the present, there is little prospect of material reduction at any time.
I also pointed out in my message on H. R. I that necessary Government expenditures are still high. We are meeting tremendous obligations growing out
of the war. The national defense establishment still requires large sums. Our
responsibilities for international rehabilitation have an importarit bearing on our
efforts to secure lasting peace. The recent refusal of certain nations to join in
common endeavors to establish conditions of world stability increases the difficulty of our task and exposes us to greater risk. Until we are better able to estimate the cost of our investment in world peace and collective security, it is unwise
to make so large a cut in our Government's future income that "our ability to
meet our needs would be impaired.
REPORT OF THE SECRETARY OF THE TREASURY
247
As far as can be determined at present, it is not likely that expenditures in the
fiscal year 1948 will be substantially less than I.estimated in the January budget
message. A careful appraisal of the outlook for both receipts and expenditures
indicates that it is not possible, under present conditions, to make a major tax
reduction and an adequate payment on the public debt at the same time.
Not only does this bill represent an unsound fiscal policy, but it would also
contribute to inflationary pressures which we have made progress in combatting
but have by no means overcome. As I stated in the message on H. R. 1, there
is no justification for tax reduction so long as price stability at sound levels has
not been secured and business, employment, and national income continue at peak
levels.
Since the veto of H. R. 1, income payments to individuals have continued to
rise, and the general level of business activity is establishing new high records.
The total number of civilians gainfully employed has also continued to rise.
Total employment in June increased by 1,725,000 over May, and the total number
now eniiployed is over 60,000,000—the highest in our history. There is still no
convincing evidence that a recession is imminent.
Tax reduction now would delay the readjustments of prices and wages necessary
to maintain this high prosperity. It would lead to an even higher level of prices
for consumer goods. It would increase the danger of a recession..
For all these reasons, which are more compelling now than they were 1. month
ago, I regard the present bill as unsound and unsafe.
I also regard it as unfair. .
In my message of disapproval of June 16, I pointed out that H. R. 1 was inequitable in that it would reduce taxes in the high-income brackets to a grossly disproportionate extent as compared with the reduction in the low-income brackets.
I stated that a good tax-reduction bill should give a greater proportion of relief
to low-income groups.
Since the present bill is identical except as to its effective date, it is, of course,
subject to the same criticism.
It is important to remember.that, during the war, Federal income taxes were
exterided to millions of low-income families who had never before paid them, and
taxes on moderate incomes were increased by a far greater proportion than those
on higher incomes. The amount by which present income taxes exceed those
payable under the Revenue Act of 1940 represents a special wartiriie tax burden.
When the time comes to lessen this wartime tax burden, it is only fair that we
should follow a pattern which is the reverse of that under which the burden was
imposed. That is to say, this wartime tax burden should be reduced bn a basis
that is fair to low income groups as well as to high income groups.
The failure of H. R. 3950 to follow this equitable principle is strikingly demonstrated by the following examples:
The bill would remove 21 percent of this wartime tax burden for a married
couple with an income of $2,500.
The bill would remove 64 percent of this wartime tax burden for a couple with
an income of $100,000.
.
The bill would remove 85 percent of this wartime tax burden for a couple with
an income of $1,000,000.
I am unequivocally committed to the right kind of tax reduction at the right
time. The right kind of tax reduction must be based upon a careful consideration
of all elements of Our tax structure.
.
A premature and faulty tax reduction bill such as H. R. 3950 would in-ject into
our tax system inequities which would greatly increase the difficulty of making
' desirable revisions.
A fair and proper revision of our tax structure should result in an equitable
distribution of tax reductions. It should be designed, also, to assure a balanced
budget, adequate debt retirement, and an adequate reserve for meeting our international commitments and carrying out our foreign policy. It should be designed
to provide stability rather than instability in our economy, and should be properly
timed for that purpose.
. Because H. R. 3950 is at complete variance with the fundamental requirements
of a good tax bill, I am compelled to return it without my approval.
HARRY S. TRUMAN.
T H E WHITE HOUSE, July 18,
1947.
248
REPORT OF,THE SECRETARY-OF THE TREASURY
ORGANIZATION AND PROCEDURE
Exhibit 37
Executive Order 9801, November 9, 1946, removing wage and salary controls
adopted pui:suant to the Stabilization Act of 1942
By virtue of the authority vested in me by the Constitution and statutes of the
United States, and particularly by the Stabilization Act of 1942, as amended,
and for the purpose of further effecting an orderly transition from war to a peacetime economy, it is hereby ordered as follows:
All controls heretofore in effect stabilizing wages and salaries pursuant to the
provisions of the Stabilization Act of 1942, as amended, including any Executive
order or regulation issued thereunder, are .hereby terminated; except that as to
offenses committed, or rights or liabilities incurred, prior to the date hereof, the
provisions of such Executive orders and regulations shall be treated as still
remaining in force for the purpose of sustaining any proper suit, action, or prosecution with respect to any such right; liability, or offense.
HARRY S. TRUMAN.
T H E WHITE HOUSE, November 9,
1946.
Exhibit 38
Portions of Executive Order 9809, December 12,1946, transferring to the Treasury
Department certain functions relating to contract settlements and wage
stabilization
^
By virtue of the authority vested in. me by the Constitution and statutes,
including Title I of the First War Powers Act, 1941, Title III of the Second War
Powers Act, 1942, .section 201 (b) of the Emergency Price Control Act of 1942, as
amended, and section 2 of the. Stabihzation Act of 1942, and as Presiderit of the
United States, it is hereby ordered, for the purpose of further effectuating the
transition from war to peace and in the interest of the internal management of the
Government as follows:.
•• ,
'
*
*
*
•
.
.
•
8. There are transferred to the Department of the Treasury (a) the functions
of the Office of Contract Settlement, (b) the' Appeal Board established under
section 13 (d) of the Coritract Settlement Act of 1944, (c) the Contract Settlement Advisory Board created by section 5 of the said act, and (d) the functions of
such boards, which shall remain vested therein, respectively. The functions of
the Director of Contract Settlement, and. the functions of the Director of War
Mobilization and Reconversion under section 101 (b) of the War Mobilization
and Reconversion Act of 1944 with respect to the Office of Contract Settlement,
are transferred to the Secretary of the Treasury.^
10. (a) The NationarWage Stabilization, Board is terminated.
(b) The functions heretofore vested in the 'National Wage Stabilizatiori Board
pursuant to the provisions of section 5 (a), of the Stabilization Act of 1942, as
a-mended, are transferred to the Department of the Treasury.
(c) The functions under section 5 of the War Labor Disputes Act now vested ^
in,the National Wage Stabilization Board shall be administered by a special board
or boards,to be constituted as may be necessary by the Secretary of Labor from
ariaong the members of a panel to be appointed by the, President for that purpose.
(d) The Tripartite Steel Commission (created by the National War Labor
Board on March 30,. 1945) shall continue to carry out its functions within the
Department of Labor until such date as the Secretary of Labor may fix for its
terminatiori.
(e) All other functions of the National Wage Stabilization Board are transrferred to the Secretary of Labor.
•
11, The authority, records, property, and personnel which relate primarily to
the functions redistributed by this order are transferred to the respective agen1 See section 201 of Reorganization Plan No. I of 1947, exhibit 39 and Order No. 78, exhibit 41.
REPORT ^ OF THE SECRETARY OF THE TREASURY
249-
cies in which functions are vested p u r s u a n t t o t h e provisions of this order a n d t h e
funds which relate primarily t o such functions are transferred or otherwise made
available to such respective agencies: Provided, T h a t t h e Director of t h e Bureau
of t h e Budget m a y in ariy case, limit t h e records, property, personnel, a n d funds
t o be so transferred or made available to so much thereof as he deems t o be required for t h e administration of t h e transferred functions. Such further measures
a n d dispositions as m a y be determined by t h e Director of t h e Bureau of t h e Budget
t o be necessary t o effectuate t h e purposes a n d provisions of this p a r a g r a p h shall
be carried out in such manner as t h e Director of t h e Bureau of t h e Budget m a y
direct arid b y such agencies as he m a y designate, .All personnel transferred under
t h e provisions of this order which t h e transferee agencies shall respectively find
t o be in excess of t h e personnel necessary for t h e administration of t h e functions
transferred t o such agencies by thiS'Order shall, if n o t retransferred under existing law t o other positions in t h e Government, be separated from t h e service,
12. All prior Executive orders or parts thereof in conflict with this order are
amended accordingly. All other prior orders, regulations, rulings, directives, a n d
other actions relating to a n y function or agency transferred by this order o r issued
by a n y such agency shall remain in effect except as t h e y are inconsistent herewith
or are hereafter amended or revoked under proper a u t h o r i t y .
13. T h e provisions of this order shall become effective immediately except t h a t
t h e provisioris of p a r a g r a p h 10 hereof, a n d those of p a r a g r a p h 11 to t h e extent t h a t
t h e y relate t o t h e functions referred t o in p a r a g r a p h 10, shall become effective on
F e b r u a r y 24, 1947.
.^
H A R R Y S.
TRUMAN.
T H E W H I T E HOVSI^, December 12, 1946'. •
Exhibit 39
Portion of the P r e s i d e n t ' s Reorganization Plan N o . 1 of 1947, effective July V
1947, relating to contract settlement functions a n d National Prohibition Act
functions
P A R T I I . DEPARTMENT OF THE TREASURY
S E C . 201. Contract settlement functions.—The functions of t h e Director of
Contract Settlement a n d of t h e Office bf Contract Settlement are transferred t o
t h e Secretary of t h e Treasury and,shall be performed b y him or, subject.to his
direction a n d control, by such officers arid agencies of t h e D e p a r t m e n t of t h e
Treasury as he m a y designate. T h e Contract Settlement Advisory Board
created by section 5 of t h e Contract Settlement Act of. 1944 (58 Stat, 649),and
t h e Appeal Board established under sectiori 13 (d) of t h a t a c t are. transf erred t o
the D e p a r t m e n t of t h e Treasury: Provided, T h a t t h e functions of t h e boards shall
be performed b y them, respectively, under such conditions a n d limitations a s
m a y now or hereafter be prescribed by law. T h e Office of Contract Settlement
is abolished.
SEC. 202. National Prohibition Act functions.—The functions of t h e Attorney
General a n d of t h e D e p a r t m e n t of Justice with respect to (a) t h e determination of
internal revenue taxes a n d penalties (exclusive of t h e determination of liability
guaranteed b y permit bonds) arising o u t of violations of t h e National Prohibition
Act occurring prior to t h e repeal of t h e eighteenth a m e n d m e n t to t h e Constitution, a n d (b) t h e compromise, prior t o reference t o t h e Attorney General for suit,
of liability for such taxes a n d penalties, are transferred to t h e Commissioner of
I n t e r n a l Revenue, D e p a r t n i e n t of the.TresiSUTy:. Provided, T h a t a n y compromise
of such liability shall be effected in accordance.with t h e provisions of section 3761<of
t h e J n t e r n a l . Revenue Code. All files arid records of t h e D e p a r t m e n t of Justice
u s e a primarily in t h e administration of t h e functions transferred by t h e p r o visions of this section are hereby made; available t o t h e Commissioner of I n t e r n a l
Reyenue for use in t h e administration of such functions. .-,
250
REPORT OF T H E SECRETARY OF T H E TREASURY
Exhibit 40
Establishment of the Treasury D e p a r t m e n t Committee on Employee Awards
TREASURY DEPARTMENT,
Washington, J a n u a r y I 4 , 1947.
To Heads of Bureaus, Offices and Divisions, Treasury Department:
P u r s u a n t to t h e a u t h o r i t y contained in Treasury D e p a r t m e n t Order No. 79,^
there is hereby established t h e Treasury D e p a r t m e n t Committee on Employee
Awards.
T h e duties of t h e Committee will be (1) t o formulate t h e Treasury D e p a r t m e n t ' s
program for recognition of meritorious suggestions a n d service in accordance
with section 14 of Public Law 600, 79th Congress, a n d Executive Order 9817;
(2) to revise t h e Treasury D e p a r t m e n t ' s award program in accordance with any
subsequent regulations t h a t m a y be issued a n d in t h e light of changing needs
a n d experience gained as t h e program progresses; (3) to recommend t h e disposition
of all previously constituted committees, regulations a n d procedures concerned
with recognition of meritorious suggestions a n d service so t h a t t h e D e p a r t m e n t
will maintain one clearly defined program on this subject; a n d (4) to serve as t h e
senior reviewing a u t h o r i t y on employee awards.
T h e initial membership of t h e Committee, to serve, uritil J u n e 30, 1947, will be
t h e Director of Personnel, Chairmari (Theodore F . Wilson);2the Budget Officer,
Vice Chairman (Willard L. Johnson); IIead,.Fiscal Service Operation a n d Methods
Staff (Walter F . Frese); Executive Assistant to Assistant Secretary (B. E. Lane
T i m m o n s ) ; a n d Assistant to t h e Under Secretary (John S. G r a h a m ) .
T h e first meeting of t h e Committee wiU be caUed- by t h e Chairman during t h e
m o n t h of J a n u a r y 1947.
WILLIAM W . PARSONS,
Administrative Assistant to the Secretary.
Exhibit 41
Treasury D e p a r t m e n t orders relating to organization and procedure
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 . 67, J U L Y 12, 1 9 4 6 — B U D G E T D I V I S I O N
P u r s u a n t to a u t h o r i t y vested in me by section 161 of t h e Revised Statutes
(U. S. C , title 5, sec. 22), a n d t o other a u t h o r i t y vested in me as Secretary of t h e
Treasury, t h a t p a r t of t h e Budget Section of t h e Bureau of Accounts, engaged in
t h e perforniance of d e p a r t m e n t a l budgetary functions, including t h e necessary
personnel, records, a n d property, is hereby transferred, effective July 1, 1946, t o
a n d m a d e a p a r t of t h e Office of t h e Secretary.
Control over a n d supervision of t h e Budget Section, hereafter designated as t h e
Budget Division, shall be in t h e Budget Officer of t h e Department.^
J O H N W . SNYDER,
Secretary of the Treasury.
TREASURY
DEPARTMENT
O R D E R N O . 68, J U L Y 30, 1946—^ADMINISTRATIVE
ASSISTANT TO THE SECRETARY
; Mr. William W. Parsons, Techriical Assistant in t h e Office of t h e Secretary, is
hereby appointed as Administrative Assistant to t h e Secretary of t h e Treasury.
Mr. Parsons willperform all t h e functions a n d duties previously assigned to t h e
Adrainistrative Assistant t o t h e Secretary, as set forth in Treasury D e p a r t m e n t
Order No. 59, dated March 3, 1945 (see 1945 annual report, p, 433). I n addition,"
Mr. Parsons^will be responsible for the D e p a r t m e n t ' s budgetary program. I n
this connection Treasury D e p a r t m e n t Order No. 67, dated July 12, 1946, is hereby
1 Sep exhibit 41.
2 Effective July 1,1947 (release June 23,1947), James H, Hard, II, Director of Personnel, became chairman,
and other members did not change.
» Amended by Order No, 68.
REPORT OF THE SECRETARY OF THE TREASURY
251
amended t o provide t h a t t h e Budget Officer shall report directly t o t h e Adrhinistrative Assistant to t h e Secretary.
.,
• '
Mr. Parsons succeeds t o t h e position formerly held by Mr. Paiil.L. Kelley.^ . .
JOHN
W.
SNYDER,
. ..jJ,
Secretary, of the Treasuryi
•TREASURY
DEPARTMENT
ORDER
N O . 69,^
PRACTICE
AUGUST
7,
1946—COMMITTEE
.
bi^
Effective from a n d after.this date, t h e Committee on Practice will report t o
t h e General Counsel for the. D e p a r t m e n t of t h e Treasury.Treasury D e p a r t m e n t Order N o . 26, d a t e d October 17, 193Q, a n d unnumbered
orders, d a t e d J u n e 21, 1943, a n d August 18, 1943, regarding t h e supervision of t h e
Comrriittee on Practice are superseded a n d revoked by this order.
JOHN
•
W.
SNYDER,
.
\
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 . 70, A U G U S T 2 0 , 1 9 4 6 — M O N E T A R Y FUNCTIOWS
T h e following duties are hereby assigned t o Mr. Andrew N . Overby, who is
serving as Special Assistant to t h e Secretary:
1. Supervision of t h e Division of M o n e t a r y Research a n d Foreign F u n d s
Control.
2. Responsibility for all foreign relations affairs of t h e Treasury D e p a r t m e n t
a n d to act as liaison between t h e Treasury a n d S t a t e D e p a r t m e n t on
all such matters.
.
,
•,
3. Supervision of t h e operating policies of t h e exchange stabilization fund.
I n performing all of his assignments, Mr. Overby will report directiy tO; t h e
Secretary of t h e Treasury.
.
. . . .
\
This order supersedes Treasury Departriient Orders N o . 43, dated December
15, 1941, a n d N o . 58, d a t e d J a n u a r y 26, 1945.
„
'
J O H N W. S N Y D E R ,
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 . 71, S E P T E M B E R 18, 1 9 4 6 — H E A L T H S E R V I C E
PROGRAMS
Public Law 658, approved August 8, 1946, authorizes heads of d e p a r t m e n t s
"within t h e limits of appropriations m a d e available therefor, t o establish by cont r a c t or otherwise, health service programs which will provide health services for
employees under their respective jurisdictions."
I hereby delegate t b t h e Director bf Personnel t h e a u t h o r i t y vested'in me byPublic Law 658.
'
. .
.. . ;
^ J O H N W . SNYDER,
•
.
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 . 72, O C T O B E R 10, 1 9 4 6 — D E L E G A T I O N OF
P O W E R S AND A U T H O R I T Y R E L A T I N G TO P E R S O N N E L , A D V E R T I S I N G , T R A V E L ,
ETC.
: By virtue of t h e a u t h o r i t y vested in m e as Secretary of t h e Treasury, a n d p u r s u a n t t o t h e provisions of Public Law 600, 79th Congress, it is hereby; ordered
that:
•
^
. - . . " •
. (1) All a u t h o r i t y vested in me t o t a k e final action on m a t t e r s pertaining t o
t h e employment, direction, a n d general administration of personnel under t h e
Treasury D e p a r t m e n t is delegated, t o t h e Director of Personnel w h o ' r e p o r t s t o
me through t h e Administrative Assistant t o . t h e Secretary., Subject t o t h e
approval of t h e Administrative Assistant t o t h e Secretary, t h e Director of Per* Revoked by Order No. 76.
252
REPORT OF T H E SECRETARY OF T H E TREASURY
sonnel m a y redelegate this authority t o those officials and employees selected by
hirii as beirig qualified to perform such duties.
(2) T h e a u t h o r i t y vested in me b y section 3828, Revised S t a t u t e s (44 U. S. C.
324), to authorize t h e publication of advertisements, notices or proposals is hereby
delegated t o t h e Director of Procurement.
(3) All a u t h o r i t y vested in me t o direct travel and all. powers which I a m
authorized to delegate t o a subordinate relating t o t h e performance of travel by
officials and employees on official business of t h e D e p a r t m e n t are. hereby delegated to t h e Administrative Assistant to t h e Secretary.
(4) All other a u t h o r i t y contained in Public Law 600, 79th Congress, which I
a m authorized t o delegate to a subordinate official, and not covered in subparagraphs (1), (2) and (3),.above, is hereby delegated to t h e Administrative Assista n t t o t h e Secretary.
. The, powers and a u t h o r i t y delegated b y subparagraphs (3) a n d (4), above, t o
t h e Administrative Assistant t o t h e Secretary m a y be redelegated by him t o
officials and employees of t h e D e p a r t m e n t in such m a n n e r as he determines best
for t h e efficient operation of t h e Treasury D e p a r t m e n t .
T h e Treasury officials and employees designated by t h e Administrative Assista n t to t h e Secretary, and by t h e Director of Personnel with t h e approval of t h e
Administrative Assistant t o t h e Secretary, are hereby authorized t o exercise t h e
authority redelegated to t h e m under t h e provisions of this order.
J O H N W . SNYDER,
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 . 73, N O V E M B E R 19,
FEDERAL S U P P L Y ; -
1946-BUREAU
OF
To Heads of Bureaus, Offiices and Divisions, Treasury Department:
Effective J a n u a r y 1, .1947, t h e name of t h e ''Procurement Division" of t h e
Treasury D e p a r t m e n t will be changed t o t h a t of t h e ''Bureau of Federal S u p p l y "
a n d . t h e title of t h e "Director of P r o c u r e m e n t " will be chariged t o t h a t of t h e
"Director, Bureau of Federal Supply."
Reproduced on the reverse hereof [omitted here] is a copy of t h e official docum e n t filed with ;the Federal Register making this change of n a m e effective on t h e
above date.
JOHN W .
SNYDER,
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 . 74, N O V E M B E R
OF CUSTOMS
19,
1946-COMMISSIONER
.
P u r s u a n t i o t h e authority contained in section 12 of Public Law 600, 79th
Congress, I hereby delegate to t h e Commissioner of Customs t h e a u t h o r i t y to
authorize t h e publication of advertisements, notices, or proposals relating to
administration of t h e activities of t h e Bureau of Customs.
JOHN W .
SNYDER,
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 . 75, N O V E M B E R 27, 1 9 4 6 - T R A V E L E X P E N S E S
By virtue of t h e authority vested in me as Secretary of t h e Treasury, and
p u r s u a n t t o t h e provisions of section 1 of Public Law 600, 79th Congress, it is
hereby ordered t h a t : .
'
<
(1) When civilian officials or employees of t h e Treasury D e p a r t m e n t in t h e
interest of t h e Government are transferred from one official station to another,
including transfers from another Departmerit, for p e r m a n e n t duty, t h e following
officials of t h e Treasury D e p a r t m e n t m a y authorize, in t h e order directing t h e
travel, t h e allowance and p a y m e n t from Goverriment funds of t h e expenses of
travel of t h e official or employee, t h e expenses of transportation of his irtimediate
REPORT OF THE SECRETARY. OF THE TREASURY
253
family, a n d t h e expenses of transportation, packing, crating, t e m p o r a r y storage,
drayage, and unpacking of his household goods and personal effects:
Fiscal Assistant Secretary
•
Administrative Assistant t o t h e Secretary
Director of Persorinel
.
Commissioner of Accounts
Commissioner of Customs
Assistant Commissioner of Customs
Chief, Office of Personnel, U. S. Coast Guard
Chief, Civilian Personnel Division, U. S. Coast Guard"
Director, Bureau of Engraving and Printing
Associate Director, Bureau of Engraving and Printing
Assistant Director, Bureau of Engraving a n d Printing
Commissioner of Internal Revenue
Director of Procurement
D e p u t y Director, Administrative Branch, Procurement Division
Commissioner of the Public D e b t
Treasurer of t h e United States
Administrative Assistarit t o t h e Treasurer
Comptroller of t h e Currency ^
.
'^
Director of the Mint ^
Commissioner of Narcotics ^
Director, U. S. Savings Bonds Division *
Chief, U. S. Secret Service Division ^
(2) T h e exercise of t h e authority delegated by subparagraph (1), above, shall
be subject to such administrative instructions and procedures as m a y be prescribed by the Administrative Assistant to t h e Secretary.
JOHN W .
SNYDER,
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 No.. 76, D E C E M B E R 10,
PRACTICE
1 9 4 6 — C O M M I T T E E ON
Effective immediately, t h e Committee on Practice is assigned t o t h e supervision
of Mr. E d w a r d H . Foley, Jr., Assistant Secretary.
Treasury D e p a r t m e n t Order No. 69, dated August 7," 1946, is revoked.
J O S E P H J. O ' C O N N E L L ,
Jr.,
Acting Secretary of the Treasury.
TREASURY
D E P A R T M E N T O R D E R N O . 77, . D E C E M B E R
GUARD
17,
1946—U. S.
COAST
B y virtue of the authority vested in me as Secretary of t h e Treasury and
p u r s u a n t to t h e provisions of section 12, of P u b h c Law 600, 79th Congress, I
hereby delegate to t h e C o m m a n d a n t , United States Coast Guard, a u t h o r i t y to
. authorize t h e publication of advertisements, pertaining to t h e recruitment of
enlisted personnel to serve in t h e United States Coast Guard, in newspapers,
periodicals, through radio stations a n d other media of commercial publicity.
This authority m a v be exercised during t h e period J a n u a r y 1, 1947, through
J u n e 30, 1947.8
The procedure prescribed by t h e Procurement Division relative to t h e placem e n t of orders and audit of vouchers fbr advertisements should be followed in
administering t h e a u t h o r i t y delegated by this order.
J O H N W . SNYDER,
Secretary of the Treasury.
5 Authorization contained in Supplement 1, June 10,1947, to Order No. 75.
8 Extended to January 1,1948, by Supplement 1, June 30,1947; to Order No. 77,
254
REPORT OF T H E SECRETARY OF T H E TREASURY
•TREASURY D E P A R T M E N T O R D E R N O . 7 8 , . D E C E M B E R 17, 1 9 4 6 — C O N T R A C T S E T T L E MENTS, E T C . • •
•
'
Supervision bver t h e following, which were transferred to the Treasury D e p a r t m e n t under t h e provisions of Executive Order 9809, is hereby assigned to the
General Counsel for t h e D e p a r t m e n t of t h e Treasury: ^
(1) T h e functions of t h e Office of Contract Settlement;
(2) T h e Appeal Board established under section 13 (d) of t h e Contract
Settlement Act of 1944; and
.
(3) T h e C o n t r a c t Settlement Advisory Board created by section ^5 of t h e
Contract Settlement Act of 1944.
J O H N W . SNYDER,
Secretary of the Treasury.
TREASURY
D E P A R T M E N T O R D E R N O . 79, J A N U A R Y 14,
MERITORIOUS SERVICE
1947, ^ — A W A R D S
.
'
FOR
B y virtue of t h e a u t h o r i t y vested in me as Secretary of t h e Treasury b y section
161 of t h e Revised Statutes, Executive Order 9817 of December 31, 1946, a n d ah
other provisions of law, ITiereby delegate to t h e Administrative Assistant to t h e
Secretary the authority set forth in section 14 of Public Law 600, 79th Congress.
T h e purpose of this delegation is to facilitate t h e p r o m p t a n d equitable recognition of meritorious suggestions a n d exceptional or meritorious service by civilian
officers a n d employees of t h e Treasury D e p a r t m e n t . Therefore, t h e Administrative Assistant to t h e Secretary is expressly directed to enlist all necessary facilities of t h e D e p a r t m e n t in the accomplishment of this objective a n d to t h e erid
t h a t t h e Government and t h e D e p a r t m e n t shah receive the m a x i m u m in improved
economy a n d efficiency as t h e result of t h e award program.
J O H N W . SNYDER,
Secretary of the Treasury.
TREASURY
DEPARTMENT
O R D E R N O . 80,- J A N U A R Y
FEDERAL SUPPLY
21,
1947—BUREAU
OF
By virtue of t h e authority contstined in section 1 of Public Law 657, 79th Congress, Second Session, an act " T o authorize relief in certain cases where work,
supplies or services have been furnished for t h e Government under contracts during t h e w a r , " approyed August 7, 1946, I hereby designate, effective immediately,
t h e Director, Bureau of Federal Supply, as the central authority of t h e Treasury
D e p a r t m e n t to make and approve settlement of claims in each case as authorized
in said act. Furthermore, I hereby delegate to said Director, Bureau of Federal
Supply, the performance of all functions, powers, a n d duties of t h e Treasury
D e p a r t m e n t incident to the administration of said act.
E.
H.
FOLEY,
Jr.,
Acting 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 . 81, F E B R U A R Y 14,
P R I N T I N G AND P U B L I C A T I O N
1 9 4 7 — C O M M I T T E E ON
B y virtue of t h e authority vested in me as Secretary of t h e Treasury b y section 161 of the Revised Statutes, Executive Order 397 of J a n u a r y 20, 1906, and
all other provisions of law, I hereby establish in t h e Treasury D e p a r t m e n t a
Committee on Printing a n d Pubhcation.
I n t h e interest of further economy and efficiency, the Committee shalL exercise
general supervision over all printing a n d binding originating in and procured for
use by t h e Treasury D e p a r t m e n t . T h e Committee shah approve all regulations
governing or affecting t h e general printing pohcies of the D e p a r t m e n t .
T h e Committee shall consist of the Administrative Assistant to t h e Secretary,
or his alternate, as Chairman; the Director, Bureau of Federal Supply, or his
alternate; and one other member t o be appointed by t h e Chairman.
JOHN W ^ SNYDER,
Secretary of the Treasury,
. 7 See Order No. 84.
8 See also exhibit 40.
REPORT OF T H E SECRETARY OF T H E 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 . 82, A P R I L 17,
LOYALTY P R O C E D U R E S
255
1947^-RULES To
GOVERN
R U L E 1. Scope of rules.—These rules shall govern t h e removal on loyalty
grounds of every civihan officer or employee (hereinafter referred to as "employee"),
of t h e Treasury D e p a r t m e n t , irrespective of tenure, or of manner, method, or
n a t u r e of appointment.
R U L E 2. Establishment of Board.—K Loyalty Board is hereby estabhshed in
t h e Treasury D e p a r t m e n t , p u r s u a n t to the provisions of Executive Order 9835.
I t shall be the d u t y of the Board to assist the Secretary, in accordance with these
rules, in fulfilhng his responsibilities with respect to employee loyalty under
provisions of section 9A of t h e H a t c h Act, 53 Stat. 1148, as amended (18 U. S. C.
61i); the several appropriation acts relating to t h e Treasury D e p a r t m e n t ; Executive Order 9835; and the Civil Service laws and regulations. .
R U L E 3. Composition of Board.^—(a) Unless otherwise specified for a particular
case, t h e Loyalty Board shall be composed of t h e Administrative Assistant to t h e
Secretary, an Assistant General Counsel, and one other member,. each to be
designated by t h e Secretary. T h e Secretary will also designate an alternate for
each member Who m a y serve in his priricipal's place when necessary. T h e Administrative Assistant to t h e Secretary.or his alternate shall serve as Chairman.
(b) Whenever he deems it necessary or expedient, the Secretary will, designate
t h e membership of t h e Board and alternates from among any other employees of
t h e Treasury D e p a r t m e n t , and he will designate one of t h e members to act as
Chairman,
(c) Unless otherwise directed by t h e Secretary, t h e Board will m e e t in Washington, D, C. Whenever he deems it necessary or expedient, t h e Secretary wiU.
direct t h e Board to meet a t such other place or places as he m a y select.
• - •.- = %
R U L E 4. Standards for loyalty.—(a) T h e s t a n d a r d for removal from employm e n t in t h e Treasury D e p a r t m e n t on grounds relating to loyalty shall b e t h e
s t a n d a r d prescribed by Executive.Order 9835, which is t h a t , on all t h e evidence,;^
reasonable grounds exist for belief t h a t t h e employee involved is disloyal tb the''
Government of the United States.
. .
• < ^'
(6) As specified in Executive Order 9835, activities and associations of ,a,n employee which m a y be considered in connection with t h e determination of disloyalty m a y include one or more of t h e following:
1. Sabotage, espionage or a t t e m p t s or. preparations therefor, or knowingly
associating with spies or saboteurs;
;
2. Treason or sedition or advocacy thereof;
.
.v.
3. Advocacy of revolution or force or violence to alter t h e constitutional
form of government of t h e United S t a t e s ;
4. Intentional, unauthorized disclosure to any person, under circumstances
which m a y indicate'disloyalty to the Uhited States, of documents or information
of a confidential or nonpublic character obtained b y t h e person making t h e disclosure as a result of his employment by t h e Government of t h e United S t a t e s ;
5. Performing or a t t e m p t i n g to perform his duties, or otherwise acting, sb as
to serve t h e interests of another governmerit in preference to t h e interests of t h e
United S t a t e s ;
.
'
. •'
6. Membership in, affiliation with or sympathetic association with any foreign
or domestic organization, association," movement, group br combination of persons,
designated by t h e Attorney General as totalitarian. Fascist,'Communist, or sub4
versive, or as having adopted a policy of advocating or approving the commission
of acts of force or violence to deny other persons their rights under t h e Constitution
of t h e United States, or as seeking to alter the forrii of government of t h e United
States by unconstitutional means.
.'
R U L E 5. Initiation of action.—(a) Whenever t h e head of a bureau or office-receives derogatory information with respect t o t h e loyalty of any employee, he shall
advise t h e Administrative Assistant to t h e Secretary of t h a t fact and shall t r a n s m i t
to him the derogatory information. The Administrative Assistant to t h e Secret a r y in t u r n shall transmit such information t o t h e General Counsel. T h e Administrative Assistant to t h e Secretary m a y if he deems it desirable confer with
the General Counsel in any case prior to disposition of such case by t h e General
Counsel under p a r a g r a p h (b) of this rule.
'
^- ' '
(b) I n any case in which t h e General Counsel is of t h e opinion t h a t information
before him supports charges which, if sustained, would w a r r a n t removal o u ' t h e
»See Order No. 83.
'
.
.
'''
', .'.
256
REPORT OF THE SECRETARY OF THE TREASURY
grounds that there is reasonable cause to believe the employee is disloyal, he shall
preparea statement of charges and deliver it to the employee by registered mail.
(c) The statement of charges shall be in writing, shall be in sufficient detail to
enable the employee to prepare.a defense, and shall be as complete as security
consideratioris permit.
(d) The statement of charges preferred against an employee shall have attached
thereto a copy of these rules and shall specifically cite Rules 6, 7, 8 (c), and 8 (d).
RULE 6. Right of employee to reply.—(a) The employee shall have the right to
reply to the charges in writing within the time specified in the statement of charges
by the General Counsel, which shall give the employee reasonable opportunity to
prepare a reply and which in no event shall be less than 15 days from the date the
statement of charges is received by him as evidenced by the postal return receipt,
(b) Any charge to which an employee does not reply within the time allowed by
these rules shall be deemed to be admitted.
RULE 7. Right of employee to a hearing.—(a) An employee against whom
charges have been preferred shall have the right to a hearing before the Loyalty
Board, provided he notifies the General Counsel of his desire for a hearing withiri
the time allowed by these rules for a reply.
(h) In any case in which an employee requests a hearing within the time
allowed by these rules, the Chairman of the Board, upon notification thereof by
the General Counsel, shall fix a time for the hearing, which shall give the employee
reasonable opportunity to prepare for the hearing and in any event shall be not
less than 15 days from the day on which the employee is notified, as evidenced by
the postal return receipt, of the time of the hearing.
(c) In any case in which an employee against whom charges have been preferred
dbes not request a hearing within the time allowed by these rules, the Board in its
discretion, may or may not hold a hearing to consider the charges.
RULE 8. Conduct of hearings.—-(a) Hearings shall be held at the time and place
specified by the Board in accordance with these rules, and shall not be open to the
public.
^
(h) The General Counsel shall designate for each case an attorney, who shall
be known as the Hearing Advocate, to present the case against the employee.
(c) An employee who requests a hearing in accordance with these rules may
personally appear "vv^ith or without counsel or a representative of his choice, or
his case may be presented by his counsel or representative. In any .case in which
an employee requests it, the General Counsel, if he deems it appropriate, may
appoint an attorney to act as counsel for the employee. In any case in which a
hearing is held and the employee does not appear, either in person or through
counsel or a representative of his choice, the General Counsel shall appoint an
attorney to act as counsel for the employee.
,
(d) An eraployee who requests a hearing shall have the right tb appear at the
hearing with witnesses and present evidence and to cross-examine witnesses
called by the Board or by the Hearing Advocate.
(e) The Board maiy receive and consider any type of informational matter that
in its sound discretion it believes may be helpful to the correct determination of
the'issues before it:'
..
(/) Testimony of witnesses personally appearing before the Board shall: be
under oath.
-.
'
(g) The Board, shall keep a written record of its proceisdings, including a
transcript of the testimony of witnesses.
RULE 9. Employees required to testifyi—(a) It shall be the duty of every employee, including an employee against whom charges are being considered, whether
or not he requested a hearing, to appear before the'Board when requested by the
Board and to answer any questions which the Board deems relevant. ,
(b) Refusal or failure by any employee to comply with a request made under
Rule 9. (a) shalLbe deemed to be contumacy and as such shall constitute grounds
for removal under existing procedures.
RULE 10. Action by Board.-^(a) Upon completion of a hearing, or after the
time allowed ^by these rules to request a hearing has elapsed and the Board has
decided not to hold a hearing, the Board shall deliberate in closed session with only
members or their alternates present, shall consider all information available to it,
whether or not received at the hearing, and shall prepare a written, recommendation for disposition bf the case, indicating the basis for such recommendation.
(b) In its recommendation the Board shall state whether, upon all the information before it and in accordance with these rules, reasonable grounds exist for
beheving that the employee is disloyal to the Government of the United States.
REPORT OF THE SECRETARY OF THE TREASURY
257
R U L E 11. Review hy General Counsel.—(a) T h e record in each case, including
the recommendation of t h e Board, shall be t r a n s m i t t e d by t h e Board t o t h e
General Counsel for review.
'
.
•
(h) In any case in which t h e recommendation of t h e Board is t h a t t h e employee
be removed, t h e General Counsel shall notify t h e employee of t h a t recommendation and its basis and allow him seven days from t h e receipt of notification in
which to file an appeal a n d writteri argument.
• ^•
. (ic) After t h e time for filing an appeal has elapsed, or if an appeal has been filed
after he has considered it, or if t h e recommendation of t h e Board is t h a t t h e employee not be removed, t h e General Counsel shall t r a n s m i t t h e record t o t h e Secret a r y with his approval or disapproval a n d such other comments or recommendations as he m a y care to m a k e .
R U L E 12. Action hy Secretary and Loyalty Review Board.—{a) After receiving
t h e entire record in t h e case, t h e Secretary will decide whether removal is a p p r o priate, and will notify the employee by registered mail of his decision in t h e
matter.
(b) If the decision of the Secretary is t h a t ' t h e charges are not sustained, t h e
employee shall be so informed a n d t h e case shall be closed,
(c\ If t h e decision of the Secretary, is t h a t t h e employee shall be removed, he
shall be immediately suspended without pay pending an appeal t o t h e Loyalty
Review Board, Civil Service Commission. An employee shall be allowed 15
days from t h e receipt of notification of t h e Secretary's decision, or such time as
t h e Civil Service Commission m a y provide by regulatibn, in which to request t h e
Loyalty Review Board to review his case a n d m a k e advisory recommendations t o
t h e Secretary. If within t h e time allowed by these rules t h e employee requests a
review by t h e Loyalty Review Board, he shall continue to be suspended b u t no
further action looking toward removal shall be t a k e n until t h e advisory recommendations of t h e Loyalty Review Board have been considered by t h e Secretary.
If within t h e time allowed by these rules t h e employee does not request a review
by t h e Loyalty Review Board, he shall be removed in accordance with t h e Secret a r y ' s decision.
(d) After consideration of t h e advisory recommendations of t h e . L o y a l t y
Review Board t h e Secretary will either direct t h a t t h e employee be removed or
t h a t he be reinstated, a n d in either case t h e employee shall be p r o m p t l y notified
of t h e Secreta,ry's decision.
• '.
^
J O H N W . SNYDER,
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 . 83, A P R I L 17,
D E P A R T M E N T LOYALTY. B O A R D
1947—TREASURY
-
I n accordance with Executive Order 9835 and Treasury Order No, 82,* ' M r .
William W. Parsons, with Mr. Joseph A. J o r d a n as his alternate, Mrr Stephen'
J. Spingarn, with Mr. Normari O. Tietjens as his alternate, a n d Mr. William T.
Heffelfinger, with Mr. B. E. L. Timmons as his ilterriatCj are designated as
members of t h e Treasury D e p a r t m e n t Loyalty Board. Mr. Malachi L. H a r n e y
is designated as Chief Investigator for t h e JBoard, and Miss J a n e Cullen is designated as Secretary. An a t t o r n e y designated for each-case by t h e GeneralCounsel
shall act as Hearing Advocate.
*
*
"
•
All officers and employees of t h e D e p a r t m e n t are directed t o cbmply. w i t h
requests-of t h e Board for iriformation and t o cooperate with t h e Board to t h e
fullest possible extent.
J O H N W . SNYDER,
•
-
/
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 . . 84, A P R I L 25, 1 9 4 7 — D E P U T Y D I R E C T O R OF
CONTRACT S E T T L E M E N T ,
,
P u r s u a n t t o Executive Order 9809 of December 12, 1946 and section 4 (d) of
t h e Contract Settlement Act of 1944- (58 Stat. 651; 41 U.- S. C. 104), I hereby
appoint T h o m a s J. Lynch as D e p u t y Director bf Contract Settlement, effective
May 16, 1947.ii
• ^ .
. ^ ^ >; ' ^. :
••
. . .
J O H N W . SNYDER,
Secretary of the Treasury.
10 See preceding order.
. i» See Order No. 78.
,
'
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258
REP0R3? OF T H E SECRETARY OF T H E 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 . 85,
M A Y 5,
1947—TORT CLAIMS
P u r s u a n t t o t h e a u t h o r i t y vested in me b y section 403 of t h e Federal T o r t
Claims Act (Public Law 601, 7Qth Congress), it is hereby ordered as follows:
(a) T h e heads of t h e bureaus, offices, and divisions, out of whose activities t h e
claini.arose, are authorized t o settle all claims under $500, except those claims
which involve novel or unusual questions of law.
(b) T h e General Courisel is authorized t o .settle all claims of $500, or more, and
those claims under $566 which involve unusual or novel questions of law.
.
-
E.
. ••
H.
FOLEY,
Jr.,
Acting Secretary of the Treasury.
MISCELLANEOUS
Exhibit 42
Proclamation by the P r e s i d e n t , April 7, 1947, a m e n d i n g the proclamations of
M a r c h 6 and M a r c h 9, 1933, and the Executive Order of M a r c h 10, 1933, to
exclude from their scope m e m b e r b a n k s of the Federal R e s e r v e System
Whereas on March 10, 1933, t h e President of t h e United States, in pursuance
of t h e program to permit resumption of banking operations following t h e Bank
H o h d a y Proclamations N o . 2039 of M a r c h 6, and N o , 2040 of March 9, 1933,
respectively, issued Executive Order No. 6073 which, a m o n g other things, authorized t h e Secretary of t h e Treasury t o permit a n y m e m b e r b a n k of t h e Federal
Reserve System and a n y . o t h e r banking institution organized under t h e laws of
the-Uriited States to perform a n y or all of their usual banking functions except
as ptherwise prohibited; and
= .. Whereas pn December 30, 1933, t h e President of t h e United States issued
Proclamation No. 2070 which excluded from t h e scope of t h e said proclamations
of March 6 a n d M a r c h 9, 1933, a n d t h e Executive order of M a r c h 10, 1933, all
banking institutions which were n b t members of t h e Federal Reserve System; and
. Whereas by December 30, 1933, t h e Secretary of t h e Treasury h a d acted upon
all requests for licensing of member banks of t h e Federal Reserve System; a n d
Whereas on December 31, 1945, t h e Secretary of t h e Treasury issued a General
License to t r a n s a c t normal banking business to all b a n k s thereafter authorized
t o begin business b y t h e Comptroller of t h e Currency a n d to all S t a t e b a n k s thereafter a d m i t t e d to membership iri t h e Federal Reserve System, a n d thereby dispensed with t h e requirement of an individual license for each new member bank
of the Federal Reserve System; a n d
Whereas i t is no longer necessary, or in the interest of Government internal
management, for t h e Secretary of t h e Treasury to license- the transaction of
normal banking business:
, Now, therefore, I, H a r r y S. T r u m a n , President of t h e United States of America,
acting u n d e r and by virtue of t h e a u t h o r i t y vested in me by section 5 (b) of t h e
T r a d i n g with t h e E n e m y Act of O c t o b e r 6, 1917, 40 Stat. 415, as amended, a n d
section 4 of the act of March 9, 1933, 48 S t a t . 2, and by virtue of all other a u t h o r i t y
vested in me, do hereby, in t h e interest of t h e internal m a n a g e m e n t of t h e Government, proclaim, order, direct, a n d declare t h a t t h e said proclamatioris of
March 6 and March 9, 1933, a n d Executive order of March 10, 1933, as amended,
are further amended t o exclude from their scope banking institutions which are
members- of t h e F e d e r a l Reserve System: Provided, however, t h a t no banking
institution shall p a y o u t a n y gold coin, gold bullion, or gold certificates, except as
authorized by t h e Secretary of t h e Treasury, or allow t h e w i t h d r a w a l of any
currency for hoarding.
' "This proclamatiori shall become effective as of M a r c h 15, 1947.
I n witness whereof, I have hereurito set m y h a n d a n d caused t h e seal of t h e
United ;States of America to be affixed.
. D o n e a t t h e City of Washington this seventh d a y of April in t h e year of our
Lord nineteen hundre.d a n d forty-seven, a n d of the Independence of t h e United
States of America t h e one h u n d r e d a n d seventy-first.
: ^^
HARRY S. TRUMAN.
By t h e President:
D E A N ACHESON,
Acting Secretary of State
.
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REPORT OF T H E SECRETARY OF T H E TREASURY
259
Exhibit 43
Transfer to the T r e a s u r y of excess earnings of the Federal Reserve B a n k s
The Board of Governors'of the. Federal Reserve System, under date of April 24,
1947, made the following announcement:
"As a result of operations essential to Government financing during a n d since
t h e war, and operations required b y t h e needs of business a n d t h e p u b h c for
credit and currency, earnings of t h e twelve Federal Reserve Banks have been a t
relatively high levels. On t h e basis of present estimates, it is expected t h a t net
-earnings of t h e Federal Reserve Banks for 1947, after p a y m e n t of t h e s t a t u t o r y
dividends t o member banks, will aggregate more t h a n $60 million. I n view of
• these facts, and of the-fact t h a t a t t h e end of 1946 t h e surplus of each Federal
Reserve Bank was equal t o its subscribed capital, t h e Board has decided to invoke t h e authority, granted to it under section 16 of t h e Federal Reserve Act,
t o levy an interest charge on Federal Reserve notes issued b y t h e Federal Reserve
Banks. T h e purpose of this interest charge is to pay into t h e Treasury approximately 90 percent of the net earnings of the Federal Reserve Banks for 1947.
" T h i s action will add about $60 milhon to the receipts of t h e Government for
this calendar year. T h e initial p a y m e n t covering t h e first'quarter of 1947 will
be made on April 24, a n d will a m o u n t to approximately $15,269,000.
"Section 16, paragraph 4, of the Federal Reserve Act provides t h a t each Federal R,eserve B a n k shall pay such rate of interest as m a y be established b y t h e
Board of Governors of t h e Federal Reserve System on t h e a m o u n t of its outstanding notes less t h e a m o u n t of gold certificates held b y t h e Federal Reserve
agent as collateral security. T h e Board has now decided, to estabhsh such rates
of interest as will make it possible to t r a n s m i t to t h e Treasury approximately
90 percent of t h e net earnings after, dividends of each of t h e Federal Resefve
Banks for 1947.
" T h e a u t h o r i t y to levy an interest charge on Federal Reserve notes not covered
by gold certificates has not been used previously, chiefly because of t h e existence, prior to 1933, of so-called franchise t a x provisions of t h e law which h a d a
similar effect; t h a t is, of transferring excess earnings of t h e Reserve Banks to
t h e Treasury. Under these provisions, which we're repealed in 1933, each Federal Reserve Bank was required to pay a franchise tax to t h e Government equal
t o 90 percent of its net earnings after it h a d accumulated a surplus equal to its
subscribed capital. To t h e end of 1932, t h e Federal Reserve.Banks had paid
franchise taxes to t h e United States Treasury amounting to $149 million, and a t
t h a t time t h e Federal Reserve Banks had accumulated surplus accounts of $278
million, as compared with subscribed capital aggregating $302- million. In t h e
a m e n d m e n t of the Federal Reserve Act, contained in the Banking Act of 1933,
providing fpr t h e establishment of t h e Federal Deposit Insurance Corporation,
Congress required each Federal Reserve Bank to p a y an a m o u n t equal to onehalf of its surplus on J a n u a r y 1, 1933, as a subscription to t h e capital stpck of
t h e Federal Deposit Insurance Corporatibn on which rio dividends would be paid.
These stock- subscriptions a m o u n t e d t o $139 million and reduced t h e surplus of
t h e Federal Reserve B a n k s to an equivalent figure, or considerably less t h a n onehalf of their subscribed capital. Congress, therefore, eliminated the franchise
t a x in order to permit the Federal Reserve Banks to restore their surplus accounts
from future earnings.
" N e t earnings fbr t h e next ten years were relatively .small, and a t t h e end of
1944 t h e combined surplus accounts of t h e Federal Reserve Banks were less t h a n
75 percent of their subscribed, capital. During t h e next two years, however, net
earnings increased substantially, due primarily t o large hbldings of Government
securities accumulated through open-market operations. This made possible
transfers to surplus accounts which increased t h e combined surplus of t h e Federal Reserve Banks to $439,823,000 a t t h e end of 1946, as coniDared with
subcribed capital of $373,660,000.
" U n d e r t h e circumstances, the Board concluded t h a t it would be appropriate
for the Federal Reserve Banks to pay to t h e Treasury t h e bulk of their net earnings after providing for necessary expenses a n d t h e s t a t u t o r y dividend. I n effect,
this will involve paying currently to t h e Treasury funds which, under existing
law, would otherwise come to it only in t h e event of liquidation of t h e Federal
Reserve Banks. T h e Federal Reserve Act still provides t h a t , in case of hquidation of a Federal Reserve Bank, any surplus remaining after t h e p a y m e n t of all
claims shall be paid t o t h e Treasury. I t is expected t h a t t h e present p a y m e n t s
764788—48
18
260
^REPORT'OF THE SECRETARY OF THE TREASURY
will be made at quarterly intervals. By invoking its authority under section 16
of the Federal Reserve Act, the Board is able to accomplish the same results as
were accomplished by the paynient of a franchise tax, i. e., the transfer of excess
earnings to the Goyernment. The payments can thus be reflected in current
revenues and taken into account in the Government's budget without further
legislation.
,
^
"In the event of restoration of a franchise tax by'the Congress, the Board would,
of course, withdraw the requirement that Federal Reserve Banks pay interest on
Federal Reserve notes, as there would be no j'ustificatiori for utihzing both means
of accomplishing the same purpose—namely, payment of excess earnings of the
Federal Reserve Banks to the Treasury.
: "In his Budget Message for 1948 the President recommended that Congress
authorize the Federal Deposit Insurance Corporation to repay the $139 milhon
of capital furnished by the Federal Reserve Banks, and accepted the proposal of
the Board of Governors that Congress at the same time authorize the payment of
this sum to the Treasury instead of to the Reserve Bariks. Sirriilarly, the President'in his Budget Message concurred in the Board's further recommendation
that Congress release to the Treasury General Fund approximately $139 milhon
earmarked fbr payments to the Reserve Banks to enable them to make loans to
industry under section 13b of the Federal Reserve Act. Legislation has been
introduced in Congress to repeal section 13b and to substitute therefor authority
for the Reserve Banks, upon request of any commercial bank, to guarantee, in
part loans made by such bank to business enterprises. If this legislation be enacted, the Federal Reserve Banks would rely upon their own surplus funds for
this purpose, without resort to Government fimds."
Exhibit 44
An act to amend the Federal Reserve Act, and for other purposes
[Public Law 41, 80th Cong., H. R. 2413]
Be it enacted by the Senate ahd House of Representatives of the United States of
America in Congress assembled, That, notwithstanding the provisions of section
1501 of the Second War Powers Act, 1942, as amended, section 14 (b) of the Federal Reserve Act, as amended (U. S. C , 1940 edition, Supp. V, title 12, sec. 355),
is hereby ameuded by striking out the proviso in such section 14 (b) and inserting
in lieu thereof the following: ''Provided, That, notwithstanding any other provision of this Act, (1) until July 1, 1950, any bonds, notes, or other obligations
which are direct obligatioris of the United States or which are fully guaranteed
by the United States as tb principal and interest may be bought and sold without
regard tb maturities" either in the open market or directly from' or to the United
States; but all such purchases and sales shall be made in accordance with the provisions of section 12A of this Act and the aggregate amount of such obhgations
acquired directly from the United States which is held at any one time by the
twelve Federal Reserve banks shali not exceed $5,000,000,000;- and (2) after
June 30, 1950, any bonds, notes, or other obligations which are direct obligations
of the United States or which are fully guaranteed by the United States as to
principal and interest may be bought and sold without regard to maturities but
only in the open market.. The Board of Governors of the Federal Reserve System shall include in their annual report to Congress detailed information with
respect to direct purchases and sales from or to the United-States under the
provisions of the preceding proviso."
Approved April 28, 1947.
.
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REPORT OF THE SECRETARY OF THE TREASURY
261
Exhibit 45
Letter of the Postmaster General to the Secretary of the Treasury certifying
extraordinary expenditures contributing to the deficiencies of postal revenues
for the fiscal year 1947
WASHINGTON, D . C , December 12, 1947.
THE HONORABLE THE SECRETARY OF THE TREASURY.
DEAR MR, SECRETARY: Pursuant to the provisions of the act of June 9, 1930
(39 U, S. C. 793), 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, 1947, as determined under our present system of estimating, are
certified to you in order that they may be separately classified on the books of the
Treasury Department:
(a) The estimated amount which would have been collected at regular rates of postage on matter mailed during.the year by officers of the Government (other than those of the Post Office
Department) under the penalty privilege, including registry fees:
z>
Postage
$65,977,325
Registry fees, including surcharges
24,026,855
(b) The estimated amount which would have been collected at regular rates of postage on matter mailed duruig the year by:
1. Members of Congress under the franking privilege.--.
-._ $896,818
2. By others under the franking privilege
24,459
$90,004,180
(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 mail- ings 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
(f) The estimated excess during the year of the cost of aircraft service over the postage revenues
derivedfrom air mail
__
Total.-_
-
-
921,277
731, 787
96.040
444,941
- 92,198,225
It has not been the practice to include in item (f) the total cost of handhng
and transporting air mail. Under the system of estimating used in prior years
the cost of the items considered amounted to $68,050,000 for the fiscal year 1947.
This estimate includes only payments to air carriers, personnel costs at air mail
fields, and the extra transportation cost involved in getting mail to and from air
mail fields. Prehminary figures for the fiscal year 1947 indicate that the total cost
of handling and transporting air mail, as determined by Cost Ascertainment procedure, amounted to $106,860,000. The combined revenue from foreign and
domestic air mail is estimated at $75,760,000.
Sincerely yours,
J.
M.
DONALDSON,
Acting Postmaster General.
TABLES
263
EXPLANATION OF BASES USED IN TABLES
Figures in the following tables are shown on various bases, namely: (1) daily
Treasury statements, (2). Public Debt accpunts, (3) warrants issued, (4) checks
issued, and (5) collections reported by collecting.officers.
Daily Treasury statements.—The figures sliown in the Daily Statement of the
United States Treasury are compiled from the latest daily reports received by the
Treasurer pf the United States from Government depositaries and Treasury
offices holding Government funds. The daily Treasury statement, therefore, is
a current report compiled from latest available iriformation, and, by reason of the
.promptriess with which the information is obtained and made public, it has come
into general use as reflecting the financial operations of the Governri^ient covering
a given period and the condition of the Treasury as it is ascertainable from day to
day. This is known as "current cash basis" according to daily Treasury statements. The current assets and liabilities, of. the Treasurer's accounts are also
available on this basis. The iSgures as shown in current daily Treasury statements
are the basis for the Budget estimates of receipts and expenditures, pubhc debt,
and condition of the Treasury submitted to Congress by: the President.
.Public Debt accounts.—On account pfthe distance of some .of the Treasury
offices and depositaries from the Treasury, it is obvious that the reports from all
offices 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 not practicable tp delay the publication of .the
daily Treasury statement in order to include the latest reports. It is necessary,
therefore, in order to exhibit the actual public debt receipts and expenditures for
any given fiscal year, to take into consideration those reports covering the transactions toward the end of the fiscal year concerned which have not been received
in the Treasury until the succeeding fiscal year, and to eliminate receipts and
expenditures relating to the preceding fiscal year. After taking into consideration
these reports the revised figures indicate the status of the public debt on the basis
of actual transactions during the period under review as reflected by the Public
Debt accounts. This is known as "the basis of Public Debt accounts."
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 shah 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 and contained in this report are on a
warrants issued basis. Table 2 for years prior to 1916 shows receipts on this basis.
Warrants issued (expenditures).—The Coristitution 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 warrarits
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
'
:
265
266
REPORT OF THE SECRETARY OF THE TREASURY
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 tp the credit of the disbursing officers..
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
froiri credits granted during the previous fiscal year, and exclude the amount of
unexpended balances 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
in that the former includes checks outstanding at the erid 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 14 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 collecting 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 bf deposits has been fourid to be impracticable and uneconomical. Table
8 shows receipts on a collection basis.
DESCRIPTION OF ACCOUNTS THROUGH WHICH TREASURY
OPERATIONS ARE EFFECTED
AU receipts of the Government are covered into the General Fund of the Treasury 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 and special accounts, as contrasted with
those effected through trust accounts. This classification was first shown for
the warrants and checks-issued bases and on the daily Treasury statements
beginning with the July 1, 1933, 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, miscellaneous internal revenue, social security taxes, taxes upou
carriers and their employees, 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, 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 five classes of appropriations
payable through the general accounts of the Treasury, namely: (a) Annual,
being those which are available for incurring obligations only during a specified
fiscal year; (b) multiple-year, being those which are available for incurring obligations for a definite period in excess of one fiscal year; (c) continuing (no year),
being available for incurring obligations until exhausted or until the object for
which appropriated has been accomplished; (d) permanent-specific, being fixed
amounts provided for each of a series of years by permanent legislation, without
annual action of Congress; and (e) permanent-indefinite, being indefinite amounts
(so much as may be necessary) provided by permanent legislation without annual,
REPORT OF THE SECRETARY OF THE TREASURY
267
action of Congress, such as trie indefinite appropriation to cover interest on the
public debt.
A statement of general account receipts and expenditures is, therefore, in the
nature of a gerieral 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 therein. Special account receipts may not be
used :for the general expenditures of the Government. The more important
items of receipts included under this heading, from the standpoint of amounts
other than those applicable to the retirement of the public debt are the reclamation
fund and receipts under the Mineral Leasing Act under the Department of the
Interior, the national forest funds under the Department of Agriculture, war
contributions, and deposits for defense aid under lend-lease legislation. There
are many other special accouht receipts of lesser importance.
Trust accounts.—Trust account receipts represent moneys received by the
Government for the benefit of individuals or classes of individuals and are used
for purposes specified in the trust. 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 accbunt receipts, the beneficiaries
under which may be either individuals or groups of individuals. The accounts
may 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; (h) moneys collected as revenues and held in trust, such.as the proceeds of
sales of Indian lands which, are held as interest-bearing funds for the benefit of
Indian tribes; (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; (d) deposits, donations, or contributions for specified purposes, such as funds received
for the purchase of lands in the national parks; and (e) deposits to be held until
apprbpriate. dispositiori thereof can be made, such as proceeds from the redemption of bpnds found and whose owners are unknown.
Checking accounts of Gpvernment corporations.—The manner in which certaih
checking accourits of Government corporations are handled in the daily statement of the Treasury was explained in the announcement appearing on page 347
of the annual report|for 1938.
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RECEIPTS AND EXPENDITURES
Summary tables on. receipts and expenditures
TABLE 1.—Summary of receipts and expenditures, fiscal years 1932 through 1947 and monthly during 1947
fOn basis of daily Treasury statements, see p. 265J.
P A R T A. B U D G E T R E C E I P T S AND E X P E N D I T U R E S
• .
00
•.
Receipts
Period
Internal revenue
B y fiscal y e a r s :
1932
1933
1934
_
1935
1936
i
1937
-1938- —
1939 - .
1940
1941 . . . . -1942
1943
1944
_
1945
1946
.
1947
By months:
1946—July
.
August
September
. _
. .
October
: .
Novp.mber
December
1947—January
-..
February
March
.
April
May
.
. June
----
.--
--
-..:...
$L 561,006, 334.38
1, 604, 423, 956.56
2, 640, 603. 828. 30
3, 277, 690,027.82
3, 512,851, 608.15
4, 597,140,102. 49
5, 674, 318, 436. 66
5,161, 220, 846. 63
5.303,133,988.29
7, 361, 674, 982. 23
12,993,117,887.52
22.143,968,999.28
41,684.987,330.27
4.3.902.001,928.64 • 40, 310, 333, 297.96
39,379,408,695.20
* 2, 250.897, 696.15
2,494,459,046.18
4, 291, 208.955. 94
2, 230,472, 514.02
2,402,752,241.67
3, 693, 272,468. 23
3,415,215.893.45
4,274,460,733.19
5,446, .i23,918.45
2,309,305, 604.66
2,578,464,122.24
3,992,775,501.02
Customs
Other
$327. 754. 969.12
250, 750, 251. 27
313. 4.34, 302.19
343; 3.53,033. 56
386, 8 n , 593. 69
486,356,598.90
359,187, 249. 57
318, 837, 31L 27
348, 590, 635. 21
391,870,013.27
388, 948, 426. 88
324, 290, 778. 06
431,252,168.24
354, 775, 54L 50
435, 475,071. 97
494,078, 259. 72
$116,964.133.64
224, 522. 533. 93
161,515,919.04
179, 424,140.58
216, 293, 413. 29
210, 343,.535. 48
208,155. 540.76
187,765,467.69
273.111..779. 26
514,967,590.00.
285.848,509.44
2 916, 385, 725. 20
2 3, 292, 202, 529. 49
2 3. 482, 746, 869; 42
2 3,492, 781, 966.91
2 4,829,216,366.63
44,088,595.61
39,995,087.39
42,416,946.78
44,984,334.21
44,746,490.12
43,352,412.35
46,992, 867. 60
35,700,412.61
38,854,010. 85
. 40,787,99L 66
37,023,806.99
35,135,303.55
305.308,002. .34
182, 691, 652. 20
147,492. 520. 85
341,485,361.75
191, 686. 561. 85
376. 516; 081. 95
397,874,719. 91
332, 623,726.45
239, 206,952.85
273,851,367.60
588,610,866.94
1.451,868,552.14
Totalreceipts
O
Deduct: Net transfers to F e d e r a l oldage a n d s u r v i v o r s
insurance trust
fundi
'
-
,
•
N e t receipts
W
. '
$2,005,725,437.14
2,079, 696, 741. 76
3,115, 554,049. 53
3, 800,-467, 20L 96
4,115,956, 615.13
$265,000,000.00
5, 293, 840, 236. 87
- 387,000,000.00
6,241,661,226.99
5, 667,823, 625. 59
503,000,000.00
5, 924, 836, 402. 76
537,711,733.00
8,268,512.585.50
661, 300, 733. 42
. 868,853,202.82.
13, 667. 914, 823. 84
23, 384, 645, 502. 54.
L 103,002, 79.3. 30
1,259.515,059.93
45,408. 442. 028; 00 '
1,282,969,759.85
47, 739. 524, 339. 56
44, 238, 590, 336.84 . 1, 200, 791, 528. 79
1,443,870,132.75
44,702,703,321.65
2,600,294,294.10
2,717,145,785.77
4,481,118,423.57.
2,616,942,209.98
2, 639,185, 293.44
4,113,140,962.53
3,860,08.3,480.96
4, 642,784.872. 25
5,724,184,882.15
2, 623,944,963.92
3,204,098,796.17
5,479,779,356.71
61.347,102.84
283,375,681.25
3.489,916.30
72,586,390.67
274,948,663.49
.5,940,825.38
40,443,898.91
264,363,852.36
23,557,243.08
67, 831,960.45
339, 208,353. 28
6,776,244.74
o
$2,005, 725, 437.14
2,079, 696, 741. 76
3,115, .554,049. 53
3,800, 467,201. 96
4,115,956,615.13
5,028, 840, 236. 87
5,854.661,226.99
5,164, 823, 625. 59
5,387,124,669.76
7,607,211,852.08
12,799,061,621.02
22, 281, 642, 709. 24
44,148,926,968.07
46,456,554.579.71
43,037,798,808.05
43,258,833,188.80
•
2.538,947,191.26
2,433,770,104.62
4,477,628,507. 27
2, 544,355, 819.31
2,3&4, 236, 629. 95
4.107,200,137.15
3, 819, 639,582. 05
4,378,421,019.89
5,700, 627, &39. 07
2,556,113,003.47
2, 864, 890,442. 89
5,473,003.111.97
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Expenditures
Period
General 3
Statutory
T o t a l expendie n t cor- T o t a l expendiN a t i o n a l defense Transfers t o pGo or avtei or nnm
d e b t retiret u r e s , including
s (wholly t u r e s , e x c l u d i n g
a n d related ac- t r u s t accounts,
m e n t s (sinking
d e b t retired e b t retireo w n e d ) , etc.,
etc.6
tivities *
f u n d , etc.)
ments
ments
(net) 8
B y fiscal y e a r s : .
1932.....
$205,
$3, 560,915, 750.92 $753, 166, 387.24 $221, 065,000.00
817,
1933....
679, 694, 732. 58 121, 266,000.00
062,584, 189.85
734,
1934.
409,195, 570.42
530, 744, 983. 70
71, 142,700.00
009,100.00
521, 488. 67
1935.
250,344, 723.05
<
*
418,
71,
510, 200.00 1,814, 154,931. 72 a 125,
951,980, 289.96
1936-.-..-.
645,044, 121.12
928, 963, 909.90 603, 400,724.68
1937.
«371,
990,361, 196.14 1,028, 803, 375.04 219, 657, 587.18 >«207,
1938...
318,805, 793.86 1,206,081, 773.86 .182,204,012.82
319,
1939115,002, 905. 07 1,657, 432, 455. 90 225, 754,345. 50
306,
1940...
078,412, 700.81 6,301, 043, 165. 91 331, 173,957. 25 1,055,
1941
004,620, 021. 65 26, Oil,065, 089. 39 380, 899,986. 65 1,892,
1942..
634,958, 014. 64 72,108, 862, 204.06 435, 065,022.17 7 1 , 523,
1943....
148, 731, 044.99 87,038, 671, 937.86 556, 110, 230. 99 71,828,
1944
L.
729,690, 800. 77 90,029, 145, 512.84 1,645, 758,371. 93
1945.
558, 510, 998.06 48,541, 675, 174.67 1,918, 441,818. 26 "71, ,304,
1946
322,825, 148.07 17,141,692, 417. 58 1. 354,885,392.08 « 7 314,
1947
By months:
- 1946—July....:...
693, 706, 316. 90 1,189,597, 556.18 630, 744,101. 78 «870, .490, 585.14
13,150, 363. 53
273,918, 793. 61 1, 509,404,896.77
136, 023,383.70
August
32, 276,369. 63
718,387, 541. 63 1,100, 446,182.63
«96, 125, 376.24
September494.326, 776.87 I, 481,185, 269. 67 47,640, 945. 51
«58, 649,123.07
October
094, 246, 180.16 1,436.414,616. 58 26,659, 631.69
«28, 118,790.76
No vember20,692, 438. 68
017, 292, 964. 52 1,579, 625.883.46
.44, 719,395. 78
December-70, 716,997.46
522,923, 936.16 1,411, 623,662.85
107, 939,625. 34
1947—January
473, 340, 104. 36 1,456, 985,001. 96 15, 787,746.00
« 3 L 790, 567.10
February. _
995, 354.41
063,367, 796. 73 1,427, 652.954.47
106, 241, 682.90
March
46, 338,572. 31
206,142, 143. 47 1, 728,083,016.15
20, 129,880.96
April
706,488, 804.11 1,327, 260,218.74 431,765, 966.80 °614, 043, 513.89
May
058,683, 789. 55 1,493,413,158.12
806,658. 31
18,116,904. 28
June
• Excess 0 f c r e d i t s ( d e d u c t ) .
1.Figures b e g i n n i n g w i t h t h e fiscal y e a r 1937 t h r o u g h D e c . 31, 1939, i n c l u d e a m o u n t s
formerly classified as e x p e n d i t u r e s u n d e r transfers to t r u s t a c c o u n t s , e t c . , for t h e old-age
reserve a c c o u n t w h i c h w a s thereafter d e s i g n a t e d as t h e " F e d e r a l old-age a n d s u r v i v o r s
i n s u r a n c e t r u s t f u n d . " F i g u r e s for 1940 t h r o u g h 1947 are "exclusive of r e i m b u r s e m e n t s
from t h e t r u s t fund to t h e G e n e r a l F u n d for t h o s e a d m i n i s t r a t i v e expenses w h i c h arc n o t
p a i d d i r e c t l y from t h e t r u s t fund.
2 I n c l u d e s d e p o s i t s r e s u l t i n g from t h e r e n e g o t i a t i o n of w a r c o n t r a c t s . . I n f o r m a t i o n regarding t h e a m o u n t of such deposits is n o t available on t h e basis of d a i l y T r e a s u r y s t a t e m e n t s . O n tho basis of covering w a r r a n t s such d e p o s i t s t o t a l e d $558,223,780.23 for 1943;
$ 2 , 2 3 5 , 3 8 3 , 0 1 1 . 5 7 for 19.44; $ 2 , 0 4 0 , 9 2 6 , 6 5 3 . 3 7 for 1945; $1,062,830,029.06 for 1946; a n d
$278,954,680.55 for 1947, T h e foregoing coverings i n c l u d e so-called v o l u n t a r y r e t u r n s .
3 F i g u r e s t h r o u g h 1945 h a v e b e e n revised to i n c l u d e " R e v o l v i n g funds ( n e t ) . "
< E x c l u d e s e x p e n d i t u r e s b y R e c o n s t r u c t i o n F i n a n c e C o r p o r a t i o n a n d i t s affiliates
w h i c h a r e i n c l u d e d u n d e r " ( G o v e r n m e n t cbrpoi-ations (wholly o w n e d ) , e t c . ( n e t ) . "
$4, 741, 015,144.
4,'681, 348,826.
6,745, 185,992.
6, 591, 519,302.
8, 540, 505,844.
7,806, 260,951.
7,031, 277,824.
9,026, 981,666.
9, 305, 143,830.
13,766, 484,446.
34,289, 304,352.
79, 702, 073,074.
95, 572, 319, 509.
100,397,,470,705.
63, 713, 969,417.
42,505, 045, 528.
643, 557, 389.
932, 497, 437.
754, 984, 717.
964, 503,868.
529, 201, 637.
662, 330, 682.
113, 204, 221.
914, 322, 285.
598, 257, 688.
000, 693, 612.
851, 471, 475.
540, 020, 510.
$412,
461,
359,
573,
403,
103,
65,
58,
129,
64,
94,
3,
750.00 $5,153, 644,894.68
800.00 5,142, 953,626.61
092. 90 7,105, 050,084.95
250.00 7,165,077, 552. 38
150.00 8,943, 745,994.90
200.00 7,910, 232,15L22
950.00 7,096, 742,774. 70
450.00 9,085,228,116.02
100.00 9,434, 327.930.43
500.00 13,830, 744,946.04
300.00 34,384, 026,652. 78
400.00 79,705, 536,474.18
650.00 95, 572,321,159. 53
000.00 100,397,,472,705.39
000.00 63,713, 973,417.48
42,505, 045, 528. 52
Excess of
e x p e n d i t u r e s including debt
retii'ements
Excess of
e x p e n d i t u r e s excluding d e b t
retirements
$3,147, 919,457. 54
^063, 266,884.85
3,989, 496,035.42
3,364;610.350.42
4,827, 789,379. 77
2,881, 391,914. 36
1, 242,0811^647. 71
3,920,404.490.43
4,047, 203,260. 67
6, 223,633,093.96
21,584, 965,031.76
67,423,893,764.94
51,423, 394,191.46
53,940, 918,125.68
20,676, 174,609.43
-763, 787,660. 28
$2,735, 289,707. 54
2,601, 652,084.85
3, 629,631,942. .52
2,791,052.100.42
4,424, 649,229. 77
2,777, 420, 714.35
1,176,616, 597. 71
3,862, 158,040.43
3,918-,019,160. 67
6,169,272,593.96
21,490, 242, 731. 76
67,420, 430,364.94
51,423, 392, 641.46
53,940, 916,126.68
20,676, 170.609.43
-753, 787,660. 28
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3,643, 557,389. 72 1,104, 610,198.46 1,104, 610,198.46
2,932, 497,437.61
498, 727,333.09
498, 727,333.09
2,754, 984, 717.65 -1,722, 643,789.62 -1, 722,643, 789.62
2,964; 503,868.98
420, 148,049.67 td
420, 148,049. 67
2, 529,201,637,67
164, 965,007. 72 Hi
164, 965,007. 72
3,662, 330.682.44 -444, 869,464.71 .-444, 869,454. 71
3,11*3,204, 221.81 -706, 436,360. 24 -706, 435, 360. 24 •
3,914,322, 285. 22 -464, 098,734. 67 •-464, "'^,,734.67 O
3, 598,267,688.51 -2,102, 369,950. 56 -2,102, 369,960. 66
4,000, 693,612.89 1,444, 580,609.42 1,444, 680,609.42
3,851, 471,475.76
986, 581,032. 87
986, 681,032.87
5,540,020, 510. 26
67, 017,398. 29
67, 017, 398. 29
« I n c l u d e s F e d e r a l c o n t r i b u t i o n s t o D i s t r i c t of C o l u m b i a ( U n i t e d S t a t e s share) beg i n n i n g w i t h 1941.
6 Figures in this column were shown in prior reports u n d e r P a r t B , T r u s t Accounts,
E t c . B e g i n n i n g w i t h t h e issue of t h e d a i l y T r e a s u r y s t a t e m e n t for J u l y 1, 1946, such
e x p e n d i t u r e s w e r e i n c l u d e d in t h e t o t a l b u d g e t e x p e n d i t u r e s of t h e G o v e r n m e n t , a n d
c o n s e q u e n t l y , reflected i n t h e cm-rent b u d g e t s u r p l u s or deficit, as t h e case m a y b e .
R e v i s i o n s h a v e b e e n m a d e i n t h i s t a b l e to conform to c u r r e n t b u d g e t a r y p r a c t i c e .
7 N e t w a r e x p e n d i t u r e s of t h e R e c o n s t r u c t i o n F i n a n c e C o r p o r a t i o n a n d affiliates w e r e
n o t cla.'^ified s e p a r a t e l y i n d a i l y T r e a s u r y s t a t e m e n t s p r i o r t o O c t o b e r 1942. T h e n e t
figure s h o w n for 1943 i n c l u d e s $2,442,248,130.97 of such w a r e x p e n d i t u r e s d u r i n g t h e p e r i o d
from O c t o b e r 17, 1942, t h r o u g h J u n e 30, 1943.. T h e figure s h o w n for 1944 i n c l u d e s
$2,681,633,923.52 of such e.xpenditures; for 1945, $472,033,180.28; for 1946, $328,048,075.33;
•and for 1947, $137,774,212.02.
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TABLE l,'-^Summary of receipts dnd expenditures, fiscal years 1932 through 1947 and monthly during 1947—Continued
•.
P A R T B. TRUST ACCOUNTS, ETC., R E C E I P T S
to
o
AND-EXPENDITURES
Receipts,
Period
F e d e r a l old-age
a n d survivors
insurance t r u s t
funds
Unemployment
t r u s t fund
R a i l r o a d retirem e n t account
Other trust
funds a n d
accounts
I n c r e m e n t resulting from r e d u c tion in weight
of gold dollar
td
Seigniorage
T o t a l receipts
hd
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td
^
B y fiscal y e a r s :
1932
1933
1934
:.
1935
L:
1936
.'
1937....'
1938
.1
1939
1940
1941
1942
1943
^ 1944
1945
1946
.
1.947
1
By months:
1946—July...:...'
August
September..
October
November..
December.1947—.January
February.March
April.
May...
June..
$267, 261,810.97
402, 412, 232.89
529, 951,054.81
580, 200, 560.85
717, 259,01L-54
939, 859, 765.05
1,190, 405,815.78
1,362, 692,147.02
1,406, 823, 758.00
1,348, 557,'044.16
1, 607, 335,-708. 85
$18, 949, 421,44
294, 439,871,20
762, 832, 518.88
838, 087,109.99
958, 639,162.80
1,113, 922,996.42
1,243, 687,217.14
1,398, 524,169. 64
1,566, 909, 432. 26
1, 507,756,'604.10
1, 279,779, 098.35
1,289 398,022.18
61,347, 102. 84
283,375, 681. 25
12,731, 694.42
72,646, 003.44
274,948, 663.49
17,178, 325.38
74,.108, 980.43
204,363, 852.36
32, 798, 921. 21
- 67,831, 960.45
339, 208, 353.28
106,796, 270.30
49.454, 866.45
208, 692. 307.36
43, 802, 399. 01
42,435. 503. 04
,155,392, 813. 23
53, 269, 644.03
100, 560, 953. 80
175, 097 464.37
^9, 607, 956.17
43,129, 437. 86
250, 671, 080.06
117, 283, 596. 80
$381, 259, 630.12
2S0, 075,438. 80
. 233, 472, 590. 63
.300, 819, 334. 35
2, 053, 132,867. 22
867, 521, 545.82
322, 527, 677.06
$147,813, 409.10
349, 275, 703. 83
109, 299, 289.54
408, 367, 711.86
122,932, 616.39
659, 189,937.33
126,883, 857.53849, 563, 668. 54
143,993, 058.91 220, 577, 849.34 1,116, 503, 287. 51
272. 557; 049. 21 1,850. 391,368.88
324, 057. 493.19 3, 819, 852. 766.02
311, 794, 328.77 4, 486. 326, 389. 50
322, 650, 274.00 3,008, 941,190.41165, 250, 465. 75
52, 150. 69
89, 753.42
4'i, 120, 945.. 21
• .152, 013. 70
188, 791.13
44, 245, 038.00
255, 3*8. 96
'
,309, 863.01
45,588, 767,12
420, 821. 92
21,976, 315. 09
585,933, 577.98
108.136, 455. 86
215, 641,716.81
155,475, 176.31
. 126,501,552.54.
124. 702,402.'94
122,930, 145. 00-361,467, 048.-43
207,041, 830.08
196.962. 566.8?
327,322, 309. 72
476, 826,407.92
$2,811, 375, 756. 72
$140,111,441.47
1,738,019.63
175,789,415.49
78,4,464.60
39, 786,924. 30
1, 676,187. 53
90, 351,012. 40
1,094,842.97
90,267,427.02
481,398.61
48,879,863.70
402,359.49
20,190,852:24
398. 606. 27
. 13,581,830.38
298, 559. 69
241, 729.94
.171,591.10
120. 289.08
248,298,453.74
99, 036. 66
80, 295.11
7,746. 67
6, 655. 42
4, 522. 61
• ,5,341.68
3,318.23
11,365.81
6, 573. 95
6, 079. 98
5, 273. 34
6, 331. 85
3,496.24
13, 600.33
$381, 259, 630.12
280, 075, 438.80
3,044, 848, 347. 35
^ 442,
668, 795.45
2, 248,656,168, 75
1,460, 686, 339,82
1, 727,031,693,30
1,917,361,983,80
2,119,422,175. 09
2, 637,845,261, 33
3,190, 884,099. 71
3, 926;252,842. 21
5, 052.721, 588, 47
7, 058,610. 910, 39
7, 674,854, 351.18
6,228, 405,490, 65
861,993, 759. 69
600, 263, 250.-58
272. 269, 9.S6; 27
314, 682, 969. 58
556,998;;361.19
195,350. 519. 29
341, 851-, 691.18
801.189, 793. 20
289,763 843. 81
353;519 061.10
917, 626, 061. 22
722.896, 190.44
O
w
fel
Ul
o
td
%
O
W
td
Ul
d
3
Expenditures "
Period
B y fiscal years:
1932
.1933
1934 1935
1936 - 1937
.
1938 - . .
1939
1940
1941
1942 .
1943—
1944
1945
.
1946 .
- 1947
Bymonths:
1946—July..--.
August
S e p t e m b e r . 1.
October
November
. December
1947—January.
February
March..
. . . .
April
May... ... - _
June
Federalold-age
and survivors
insurance trust
funds
Unemployment
trust fund
Excess of receipts
or e x p e n d i t u r e s
T o t a l expenditm-es
(-)
: .
$267,126, 969.35
400, 604,062.87
^..
528, 791, 583.23
^
676,705,088.55
.706,841,884. 66
931,314, 952.20
1,184, 603, 977. 71
L 356, 633, 243.80
1, 377,244,824.85
1,322,963, 291.90
1,644,348,334,07
$18,909,000.00
294, 386,000.00
750,680,000.00
836, 795,000.00
957, 316, 273. 97
1,118,127,110. 94
1, 243,142, 328. 20
1, 404,167,159. 73
1, 563, 590, 783. 79
1, 508,450,732.93
1,247,742,862.09
1, 312,473, 915. 74
$146,049,056.18
106, 774,077. 31
125, 299,073. 60
116, 773, 514. 47
143, 743, 910; 67
216,964,800. 65
274,915,832.07
323, 444, 643.89
308,458, 994. 20
321, 777,391. 96
33, 358, 900,80
37, 263,100, 65
325,329,041.79
26,266,847.53
35, 552, 216. 57
286, 083, 428.99
36,352,860.01
37, 669, 631.81
279, 245,074. 94
41,411,079.31
40,804,896. 66
465, Oil, 255.11
38, 659,198.31
218,341, 519. 61
68, 602,651. 55
41,150, 393. 56
155,195, 611.39
59,963,858.03
91,191,930.92
170, 547, 776.36
56, 292,076.43
51,494, 716.86
244,614, 436.90
127,419, 745.83
167,490,849.33
675, 725. 70
« 490,140.48
44, 229,061. 76
« 155, 328. 40
« 162,089.02
42,891,843.86
785, 782. 60
136,169. 77
45, 670, 376. 90
« 242, 221. 79
.21,047,361. 73
td
H.
. .
$386,437, 680.15
285,085,427. 53
209, 968,239,61 $2,000,000,000.00
18,337,626, 50
113,022, 629.27
2,036, 277,844.19
403, 828, 779. 50
894, 651,047. 70
100, 781,944.13
330,604,865.02
51, 638, 418.49
340,825,870. 68
5,499, 693. 74 « $1,105,600,500.00
305,093, 527. 98
4, 574. 58
« 287, 534, 506. 61
640, 959,762.89
1,821.67
« 851, 649,850.00
676,053, 675.00
1,878. 73 1,809,413,050.00
764, 664,866.19
1, 512. 56
693, 746, 663.82
1, 205,919,465. 86
2,873,580,916.48
1, 505,439, 673.17
3,821. 34 1,552, 733, 547,88
5, 224, 363,345.30
996. 30
94,912,071.73
3,138,862, 538,62
847. 66
358, 760,424.14
$386, 437, 680.15
-$5,178,050,03
285, 085,427. 53
-5,009,988,73
2, 209,968, 239. 61
834,880,107, 74
• 131.360, 255. 77
311,308, 639, 68
2,469,015,623.69
—210,359,454, 94
1.556,945. 96L 18
- 9 6 , 259, 621, 36
1,679, 576.402. 56
47, 455, 290,74
713,185, 724.96
1, 204,176, 268.84
1,676,884,032.17
442, 538,142, 92
1,730,054,244,63
907,791,016. 70
4,803, 669, 794.80 —1,612, 785, 695.09
4, 264,048,980. 66
- 3 3 7 , 796,138,45
7, 274,640, 242.00 —2, 221,918, 653, 53
6, 267, 317,-244.06
791, 293, 666.33
8,198, 441, 661. 52
—523,587,210.34
6,776, 223,452.19
-547,817,961,64
460,847, 977. 35
152, 722, 589, 98
321,860,105,00
68, 683, 621. 52
329, 594, 512.89
323,137,365.11
220, 678,366.69
162, 509, 215. 64
" 20,062,191. 70
• « 61,368,138. 61
629, 780,134.93
650, 678,979. 92
814, 247,839.48
366, 699, 489.12
686,336, 425.16
168, 396,-602.48
542, 098, 315.32
675, 515, 687. 68
466,381, 342. 78
484, 658,058,85
322, 303, 393.02
84,167, 205.87
818,345,245,88
1,357,073,946, 65
847. 66
113,890,913. 69
« 42, 303, 446. 72
« 18, 965, 232. 70
« 21,833, 321.89
2L 911, 302.87
6, 492,176. 91
75, 266, 341. 30
113,145, 652. 54
7, 692, 263. 58
7,059,171. 42
3,387,999.18
93,016,603.96
td
^
o
.V
« Excess of credits (deduct),
s Effective Jan. 1,1940, successor to the old-age reserve account.
Sales a n d
r e d e m p t i o n s of
obligations
of
R a i l r o a d retire- O t h e r t r u s t funds Charges against
Government
m e n t account
and accounts
i n c r e m e n t on gold corporations, e t c ,
in t h e market
(net)
47, 745,920,21
233, 563, 761, 46
—414, 066,438,89
156,286,367,10
14,900,046,87
-480,165,068,39
—124, 529, 651, 60
316, 631, 734,35
—32, 539, 549.21
269,361,858,23
99, 280,815, 34
•—634-177-756.11
O
w
Ul
o
o
>^
W
Ul
d
8 Includes transactions on account of investments in Government securities.
to
272
REPORT OF T H E SECRETARY OF T H E TREASURY
TABLE 2.—Receipts and expenditures,
[ O n basis of w a r r a n t s issued from 1789 tp 1915, a n d on basis of daily T r e a s u r y s t a t e m e n t s for 1916 a n d s u b
1930, T r u s t accounts excluded for 1931 a n d s u b s e
Expenditures,
excluding d e b t
retirements
Receipts"
Year
Internal revenue
Customs
(including
t o n n a g e tax) I n c o m e a n d
Other
profits taxes
Othier
receipts 2
Total
receipts 3
War Departm e n t (including rivers a n d
harbors, a n d
PanamaCanal)
1789-91.
1792....
1793....
1794....
1795....
1796....
1797....
1798....
1799
399,
443.
265,
801,
588,
667,
549,
106,
610,
$208,943
337,706
274,090
337, 755
475, 290
675, 491
644,358
779,136
$19,4401
17,946
59,910
356,750
188, 318
1, 334, 2521
563, 640
150,076
157, 228
$4,418,913
3,669,960
4,662,923
5,431,905
6,114,634
8, 377, 530|
8, 688, 781
7,900,496]
7, 546,813
$032,804
1,100.702
1,130,249
2,639,098
2.480,910
1,260,264
1,039, 403
2,009, 5221
2,466,947
1800.
1801.
18021803.
1804.
1805.
18061807.,
1808.
1809.
080,
750,
438,
479,
098,
936,
667,
845,
363,
296,
809,396
1.048.033,
621,899
215,180
50, 941
2L747|
20,101
13,051
8.211
4.044]
958,420
1.136, 519
1,935,659
369, 5001
676, 801
602,4591
872,132
539,446
688, 9001
473.408
10,848,749
12, 935, 331
14,996, 794
11,064,0981
11,826,307
13,560,6931
16,559,931
'16,398,0191
17, 060, 662
7, 773,473
2, 560,8791
1,672,944
1,179,148
822,0561
875. 424
• 712,781
1,224, 355
1, 288, 686
2,900,834
3, 345,772
1810.,
1811.,
1812..
1813..
1814..
1816.
1816.,
1817..
1818..
1819..
583,
13, 313,
8, 958,
13. 224,
5, 998,
7, 282,
36, 306,
26, 283,
17, 176.
20, 283,
7.431
2, 2961
4.903
4, 755
1,662.9851
4, 678, 0591
5.124. 708
2, 678,101
955. 270
229. 694
793, 475
1,108.010
837, 452
1;111,032
3, 519,868
3, 768.023
6, 246,088
4.137, 601
3, 453, 616
4, 090,172
9.384.215]
14,423,529
9,801,133
14,340,410
11,181,625
15,729.024
47, 677, 671
33. 099,050i
21, 585.171
24, 603, 3751
2, 294. 324
2,032,828
11.817,798
19,652,013
20, 350,807
14, 794, 294
16,012,097
8,004,237
5,622,715
6, 506,300
1820...
1821...
.1822...
1823...
1824...
1825...
1826...
1827...
1828...
1829...
15,005,
13,004.
17, 689,
19,088,
17,878,
20,098,
23,341,
19.712,
23, 205,
22, 681,
106, 261
69. 028
67, 666
34. 242
34. 663
25, 771
21,590
19. 886
17, 452
14,503]
2, 768, 797
1,499,905
2,576,0001
1,417,991
1.468. 224
1. 716, 374
1, 897, 6121
3,234,195
1, 540, 654
2.131.158
17,880.670
14, 573, 380
20. 232, 428
20, 540, 666
19,381.213
21,840,858
25. 260, 434
22,-966, 364
24, 763, 630|
24,827, 627
2, 630. 392
4,461.292
3,111,981
3,096,924
3,340.940
3, 669,914
3,943,194
3,938.978
4,145, 5451
4,724,291
1830.
1831.
1832.
1833.
18341835.
1836.
1837.
12,161
6,934
11, 631
2,7591
4,196
10,459
2,909,5641
4,296,445
3,388, 693
4.913.159
5, 572, 783
16,028, 317
27, 416,485
13. 779, 369
10,141,295
8,342,271
24,844,1161
28,626,821
31,865, 561
33,948, 427
21,791,936
35,430,087
50,826,796
24,954,153
26,302, 562
31, 482,749
4, 767,1291
4,841,836
6,446,035
6,704,019
5, 696,189
6,759,157
12,169,227
13,682,734
12,897,224
1839..
21,922,
24, 224,
28,465.
29, 032,
16,214,
19, 391,
23,409,
11,169,
16.158,
23,137,
1840..
1841..
1842..
1843 1.
1844..
1845..
1846..
1847-.
1848-.
1849.-
13,499,
14, 487,
18,187,
7,046,
26.183,
27.528,
26, 712,
23, 747.
31, 757.
28. 346,
1,682|
3,261
4951
103
1,777
3,517
2,897
375
375,
6.978,931
2,369, 682
1, 787,794
1,255,7551
3,136,026
2,438.'476
2,984,402
2.747.529
3,978,333
2,861,404
19,480,115
16,860,160
19,976,198
8, 302, 702
29, 321, 374
29,970,106
29, 699,967
26,495,769
35, 735. 779
31,208,143
7,097,070
• 8,805,565
6,611,887
2,957,300
5,179,220
5, 752, 644
10,792,8671
38, 305, 520
25.501,963
14,852,966
43. 603,4391
52,559,304
49.846,816|
61,587,054
73,800. 341
65, 350, 575
74,056,6991
11,811,793
8,225,2471
9,947, 291
11, 733,6291
14, 773,826
16, 948.197!
39, 668, 686
1850.
1851.
49,017, 568
1852.
47,339.327
1853.
58, 931. 866
1854.
64, 224,190
1855.
63,025. 794
1856.
64,022,863
F o o t n o t e s a t e n d of t a b l e .
3701
5,494
2, 4671
2,553
3, 934, 753]
3, 541. 736
2,507,4891
2, 655,188
9. 576,151
12, 324, 781
10,033.836
8,916,9961
9, 400, 2391
REPORT OF THE SEGRETARY OP THE TREASURY
273
fiscal years 1789 through 1947 ^
s e q u e n t y e a r s , see p . 265, General, special, emergency, a n d t r u s t accounts c o m b i n e d from 1789 t h r o u g b
q u e n t years. F o r explanation of accounts, see p . 266]
E x p e n d i t u r e s , excluding.debt r e t i r e m e n t s ^ C o n t i n u e d
N a v y Department *
I n t e r e s t on
the public
debt
All other 5
S u r p l u s or deficit (—)
Statutory
d e b t retireT o t a l expend- m e n t s (sink
itures, exclud- ing fund, e t c ) Gross (includ- N e t (excluding debt retire- ing d e b t reing d e b t rements)
tirements)
tirements
61,409
•410,662
274, 784
382, 632
1,381,348
. •2,858,082
$2,349,437
3, 201,628
2,772, 242
3,490,293
3,189,151
3,195,055
3,300,043
3,053, 281
-3,186,288
' $i; 286,216
777,149
579,822
• 800,039
1,459,186
996,883
1,411,556
1,232.353
1,165,138
$4, 269,027
6,079,532
4,482,313
6,990,839
• 7, 539, 809
6,726,986
6,133,634
7,676,604
9,666,455
3,448,716
2, 111, 424
915,562
1; 215, 231
1,189,833
.1,597,500
1,.649,641
1,722,064
1,884,068
. 2,427.759
3,374,705
{i, 412, 913
4.125,039
3; 848,828
4, 266, 583
4,148,999
3,723.408
3,369,578
3,428.153
2,866,075
1,401,775
1,197,301
1,642,369
1,965,638
2,387,602
4.046,954
. 3,-206,213
1,973,823
1,719,437
1,641,142
10,786,076
394, 682
862,118
851,653
719,442
10,506, 234
803; 617
354,151
932,492
10,280, 748
.1,654,244
' 1,965,566
3,959,365
6, 446, 600
7,311,291
8,^660,000
3,908,278
3,314,698
2,953,696
3, 847,640
2,845,428
2,465, 733
2,451, 273
3, 599,455
4, 593, 239
5, 754,569
7,213,259
6,389,210
6,016,447
6,163,538
1,362, 614
1,594,210
2,052,335
1,983,784
2,465, 589
3,499, 276
3,453,057
4,135,775
5, 232, 264
6,946,332
4,387,990
3,319,243
2,224,459
2,503,766
2,904, 582
3,049,084
4,218,902
4, 263, 877
3,918,786
3,308,745
5,126,097
• 5,087,274
6,172,678
4,922, 686
4,996,562
4,366,769
3,973,481
3,486,072
.3,098,801
2,542,843
3,239,429
3,856,183
3,956,370
3.901,357
3,956,260
3,864, 939
5, 807,718
6,646,915
6,131,596
6,182,294
1,913,533
1,383,583
772,562
303,797
202,153
57,863
$149,886
- 1 , 409, 572
170,610
-1,658,934
-1,425,275
2,650,544
2, 655,147
223,992
-2,119, 642
• $149,-886
-1,409,672
170,610
-1,558.934
-1.425,276
2, 650,544
2. 555,147
223,992
-2,119,642
62,674
3, 540, 749
7,133. 676
3,212,445
• 3,106,865
3,054,459
5, 756,314
8,043,868
7,128,170
- 2 , 607, 276
62,674
3;540,749
7,133.676
3, 212,445
• 3,106,866
•3,054,459
5,766,314
8,043,868
7,128,170
-2,607,275
8,156, 510
8,058, 337
20, 280,771
31,681,852
34, 720,926
• 32, 708.139
30, 586,691
21, 843,820
19,825,121
21,463,810
1,227,705
6,365.192
-10,479,638
-17,341,442
-23, 539, 301
-16,979,115
17,090,"""
11,2.55,230
• 1,760,050
3,139, 666
1,227,705
6,365,. 192
-10,479,638
-17,341,442
-23,539.301
-16,979,115
17,090,980
11, 265, 230
1,760,650
3,139, 566
6,116,148
2,942,944
4,491, 202
4,183,465
. 9,084,624
4,781.462
4,900, 220
4, 450, 241
5, 231,711
4,627,454
18, 260,627
15,810, 753
16,000, 220
14,706,840
20,326,708
15,857, 229
17,035,797
16,139,168
16,394,843
15,203,333
-379; 967
-1,237,373
5, 232, 208
5,833,826
-945,496
6,983, 629
8/224,637
6, 827,196
8,368,787
9,624,294
14,997
399, 834
5,222,975
6,166,049
7,113,983
12,108,379
8,772,967
7,890,854
' 12.891, 219
16,913,847
14,821, 242
11,400,004
15,143,
16, 247,
17,288,
23,017,
18,627,
17.572,
30,868,
37, 243,
33,866,
26,899,
9,701,050
13, 279,170
14, 576,611
. 10,930,875
. 3,164,367
17,867.274
19,958,632
-12,289,343
-7,562,497
4,583,621
9,701,050
13,279,170
14, 676, 611
10,930,875
3,164,367
17,857, 274
19,9,58, 632
-^12,289,343
- 7 , 562,497
4,583,621
6,113,897
6,001,077
8,397, 243
3,727,711
6,498,199
6,297,245
6;464,947
7,900,636
9,408, 476
'9,786,706
174,598
284,978
773,550
623, 595
1, 833,867
1,040,032
842. 723
1,119,215
2,390, 825
3, 566,678
10,932,014
11,474, 253
9,423.081
4, 649,469
8, 826, 285
9,847,487
9, 676,388
9,956.041
8,075,962
16,846,407
24,317,
26,565,
25, 206,
11,858,
22, 337,
22,937,
27,766.
57, 281,
45,377,
45,061,
-4,837.464
-9,705,713
-6,229,563
- 3 , 555, 373
6,983,803
7,032, 698
1,933,042
-30,785, 643
- 9 , 641,447
-13,843,514
-4,837,464
-9,705,713
- 5 , 229. 563
- 3 , 555, 373
6, 983, 803
7,032,698
1,933,042
-30,785,643
-9.641,447
-13,843,614
7,904,709
9,005,931
8,952,801
10,918,781
10,798,586
13,312,024
14,091,781
3, 782. 331
3,696, 721
4.000.298
3,665, 833
3,071,017
2,314,375
1,953,822
18,456. 213
23,194, 572
23,016,573
23,652, 206
32. 441, 630
29,342,443
36,577,226
39,543,492
47, 709,017
44,194,919
48,184, 111
68,044,862
59,742,668
69,571,026
4,069,947
4.850, 287
5, 651.897
13, 402.943
15,755,479
5, 607,907
4.485,673
4,059,947
4,850, 287
5, 651, 897
13, 402,943
15. 765,479
5,607,907
4,485,673
$570
53
•
-379,967
-1.237,373
5, 232, 208
5,833,826
-945,495 •
5,983, 629
8, 224,637
6, 827.196
8,368, 787
9, 624,2.94 »
274
REPORT OF T H E SECRETARY OF T H E TREASURY
T A B L E 2.—Receipts and expenditures,
Expenditures,
excluding d e b t
retirements
Receipts
Year
Internal revenue
Customs
(including
tonnage tax) Income and
Other
profits taxes
Other
receipts 2
War Departm e n t (including rivers a n d
harbors, and
PanamaCanal)*
Total
receipts 3
1857.
1858.
1859.
$63,876,905
4L 789, 621
49,665,8241
$5,089,408
4,865,745
3,920.641
$68,965,313
46,655,366
63,486,466
$19,261,774
25, 485, 383
23,243,823
18601861.
1862.
1863.
1864.
186518661867.
1868.,
53, 187, 512
39, 682,126
49, 056,398
69, 059, 642
102, 316,153
84; 928,261
179, 046, 6521
176, 417.811
164, 464,600
180, 048,427
2, 877,096|
1,927,805
2,93L058
$34,898,930
5,996,"
89,446,402
52, 569, .484
148,484,8861
39,322,129]
236.244, 654
69, 769,155
200,013,108
48.188, 662
149, 631,991
60,085,894
123, 564, 605 • 32,638,859j
66,064, 608
41,509,931
51,987,4561
112,697,291
• 264, 626.771
333, 714, 6051
668, 032, 620
490, 634,010
405,638,083
370,943, 747
16,409,767
22,981,150
394,368, 407
599, 298, 601
690,791.8431
L 031,323,361
284,449, 702|
95,224,415
123, 246,648
78, 501,991
1870.
1871.
1872.
1873.
1874.
1875.
1876.
1877.
18781879-
194,
206,
216,
188,
163,
167,
148,
130,
130,
137,
1880.
1881.
1882..
1883.
1884.
188518861887..
1888.
186, 522,064
198,159, 676
220,410,730
214,706,497
195.067,490
181,47L939|
192,905,023
217,286,893
219,091,174
223,832, 742
1890.
189118921893.
1894.
1895.
1896.
1897.
538,! 374
270,408
370,287
089, 523
103,834
167, 7221
071, 985
956,493
170,6801
250,048
$2,741,858
20,294,732
60,979,329
72,982,159
66,014,429
41,455, 598
34, 791,866
147,123,882
123,935,503
116,205.816
108, 667,002
102,270,313
110,007,261
116,700,1441
118,630,310
110,581,625
113,561,611
31, 817,347
33,965,3831
27,094.403
31,919,368
39, 465,137
20,824,836
29, 323,148
31,819,518
17, Oil, 674
23,015, 5261
411,256,47
383,323,94
374,106,86
333,738,20
304,978,75
288,000,05
294,095,86
281,406,41
257,763,87
273,827,18
|
67,655,676
35;799,992
35,372,157
46,323,138
42,313,927
41,120,646
38,070.889
.37,082,736
" 32,154,148]
40,426,661
55,628
124,009,3741
135,261; 364
146,497,5961
144,720,369
121,530,446
112,498,726
116,805,936
118,823, 391
124,296,8721
130,881,514
22, 995,173
27, 358. 231
36, 616,924
38,860,7161
31,866.307|
29,720,041
26,728,767
35, 292,993
35,878,029
32, 336,8031
333, 626, 61
360,782,29 ]
403,525,25
398,287,58
• 348,619,87
323,690,70
336,439.72
371,403.27
379,266,07
387,050,05 ;
,38,116,9161
40, 466,461
43, 570,494
48,911,3831
39,429, 603
42, 670, 578
34, 324,153
38, 561,026
38, 522,436
44,435,271
77,131
142, 606, 706
145, 686, 250
153,971,072
161,027,624
147, i n , 233!
143,344,641
146.762,8661
146, 688, 574
170,900,642
273.437,162]
30,805,693
27,403,992
23, 513, 748
21,436,988
27,425, 552
29,149,130
31,357,830
24, 479,004
84,845,631
36,394,9771
403,080.98
392,612,44 1
354,937,78
386,819, 62
306,355,31
324,729,41
338,142, 44
347,72L70 ]
406.321,33
516,960,62
44,582.8381
48,720,065
46,895,466
49,641,773
64,567,9301
51, 804, 759
50,830,921
48,950,268
91,992,000
229,841, 254
296, 327,927
307.180,664
271,880,122
230,810,124
232,904,119
234,095,741
249,150,2131
269,666,773
261,711,127
246, 212, 6441
38, 748, 054
41,919,218
36,163,403
46, 591,016
46,908,401
48,380,087
45, 582, 355
63,960,2501
64,037, 650
57.395,920
567,240,85
687,685,33
562,478,23
561,880,72
541,087, 085
644,274,68
594,984,44
665,860,38
601,861,907
604,320,49
134, 774, 768
144,615,697
112,272,216
118, 629, 505
165,199,911
126,093,894
137,326,066|
149,775,084
176,840,4531
192,486,904|
268, 981, 738
289, 012,224
293, 028, 896
309, 410, 666
-308, 659, 733
335, 467,887
387, 764,776
449, 684,980
872, 028,020
1, 296, 601,292
61,894; 751
64.806,639]
69, 675, 332
60. 802,868
62,312,145
72, 454, 509
66,646,673
88,996,194
298. 550,168
652,514,290|
675, 611,71
701, 832,91
692, 609,204
724, 11L23 I
734, 673,167
697, 910,82
782, 534,54
1,124, 324,79
3, 664,582,86
5,162, 257,13
189,823,379
197,199,491
184,122,793
202,128,711
208.349,746
202,160,134
183,176, 439
377,940,8701
4,869,956,286
9.009.075, 789
1,460,082,287
L 390,379,823
1,146,125,064
945,865,333
963.012, 6181
966, 631,164
719,942, 5891
539,407,507
820,733,8631
671,260.162I
6,694,665,38
5,624,932,96
4,109,104,16
4.007,136,48
4,012,044,7021
1.621,953,095
1.118.076, 423
457,756,139
.397,050,596
357,016,8781
37.775,874
19,162, 651
14,436,8621
6,062,312
139,472
233
3,022
1899.
229, 668, 585
219, 522, 205
177, 452,964
203,355,0171
131,818, 531
152,158, 617
-160,021,7521
176, 654,127
149, 575,062
206,128,4821
1900.
1901.
1902.
1903.
1904.
1905:
1906.
1907.
1908.
1909.
233,164,871
238,585,4561
254,444,708
284,479,5821
261,274,665
261,798,857
300.251,8781
332,233,363
286,113,130
300.711,934
1910.
191119121913.
1914.
1915.,
1916.
1917..
1918.,
1919..
20,951,781
333, 683,445
33, 516,977
314.497,071
28, 683,304
311, 321, 6721
318,891,396
35,006.300
292,320,014
' 71,381,275
209,786, 672
80, 201, 769
213,185, 846
124,937,253
226,962,393
359.681,228
179.998,385 2,314,006,292
184,457,867 3,018,783,687
1920
1921
1922
1923
1924
1 322,902,650
308,564,391
356,443,387
561,928,867
1 545,637,5041
3,944.949,288
3,206,046,158
2,068,128,193
1,678,607.4281
L 842,144,4181
Footnotes at end of table.
I
]
1
REPORT OF T H E SECRETARY OF T H E TREASURY
fiscalyears
275
1789 through 1947 ^—Continued
Expenditures, excluding debt retirements—Continued
Navy Depart*
ment •
Interest on
the public
debt
$12,747,977
13,984, 551
14, 642,990
$1,678,265
1,567.056
2,638,464
11,514,965
12, 420,888
42,668,277
63.221,964
85, 726,995
122,612,946
43, 324,118
31,034, Oil
25,775,503
20,000,758
3,177.316
4,000,174
13,190,326
24,729,847
63,686, 422
77,397,712
133,067,742
143,781,692
140,424,046
130,694,243
21,780, 230
19,431,027
21, 249,810
23, 526,267
30, 932, 687
21,497,626
18,963,310
14,969,935
17,365,301
16,126,127
129,235,498
126, 576,666
117,367,840
104, 750, 688
107,119,815
103,093,646
100, 243,271
97,124,512
102,600,876
105, 327,949
13,536,985
16,686,672
16.032,046
16,283,437
17,292,601
16,021,080
13,907,888
16.141.127
16,926,438
21,378,""
96,767,576
82,608,741
71,077,207
69,160,131
54, 678, 379
61, 386,256
60, 680.146
47.741, 677
44,715,007
41,001,484
22,006,206
26,113,896
29,174,139
30,136,084
31,701,294
28, 797, 796
27,147, 732
34, 561,646
68,823,985
63,942,104
65,963,078
60, 606,978
67.803.128
82,618,034
102.956.102
117,550,308
110,474,264
97,128,469
118,037,097
115, 646, o n
123, 173,717
119,937,644
136. 691,966
133, 262,862
139, 682,186
141, 835,654
153, 853, 667
239, 632, 757
1.278, 840,487
2,002, 310,786
Surplus or deficit (—)
Statutory
debt retireTotal expend- ments (sink- Gross (includ
itures, exclud- ing fund, etc.) ing debt retire- Net (excluding debt reing debt rements)
tirements)
tirements
All other«
$67,795,708
74,185,270
69,070,977
$1,169,605
-27,529,904
-16,684,512
$1,169,606
-27,629,904
-15,584,512
- 7,065,990
-26,036, 714
-422, 774,363
-602,043,434
-600,696,871
-963,840,619
37, 223,203
133,091,336
28, 297, 798
48,078,469
- 7,065,990
-25,036,714
-422,774,363
-602,043,434
-600,696,871
-963.840,619
37.223,203
133,091,336
28,297,798
48,078,469
309,653,661
292,177,188
277, 617,963
290, 346, 246
302,633,873
274,623,393
265,101,085
241,334,476
236,964,327
266,947,884
101,601,916
91,146.757
96, 688,905
43,392,960
2,344,883
13,376,658
28,994,780
40,071, 944
20,799, 662
6,879,301
101,601,916
91,146,767
96, 588,906
43,392,960
2,344,883
13,376,668
28,994,780
40,071,944
20, 799, 552
6,879,301
120,231,482
122,051,014
128,301,693
142,063,187
'132,826,661
160,149,021
143,670,952
166,488,451
. 167,760,920
192,473,414
267,642,968
260,712,888
257, 981,-440
265,408.138
244,126,244
260, 226, 936
242, 483,139
267,932,181
267,924,801
299,288,978
65,883,663
100,069,405
145, 643,810
132,879,444
104,393,626
63, 463, 771
93, 956, 687
103,471,096
111, 341,274
87,761,081
65,883,653
100,069,406
145,543,810
132,879,444
104,393,626
63,463,771
93,956,587
103,471,096
111, 341,274
87,761,081
36,099,284
37,647,135
23,378,116
27,264,392
27,841.406
30,978,030
36,385,029
37,791,110
37, 685,056
39,896,925
216,352,383
253,392,808
245, 675,620
276,436, 704
253,414,651
244,614, 713
238,815, 764
244,471,235
254,967i 542
271,391,896
318,040,711
365,773,904
346,023,331
383,477,963
367,525, 281
356,195,298
352,179; 446
365, 774,159
443,368, 583
606,072,179
85,040,273
26,838,643
9, 914,453
2,341,676
-61,169,965
. -31,465,879
-14,036,999
-18,052,464
-38,047, 248
-89,111,568
85,040,273
26,838,543
9,914,463
2, 341,676
-61,169,965
-31,465,879
-14,036,999
-18,062,464
-38,047,248
-89, 111, 668
40,160,333
32, 342,979
29,108, 045
28,666. 349
24,646,490
24. 690,944
24,308, 676
24,481,158
21,426.138
21,803,836
289,972,668
287,151, 271
276,060,860
287,202,239
290,857,397
299,043,768
298,093, 372
307,744,131
343,892,632
363,907,134
620,860,847
'524,616.926
485, 234,249
517,006,127
683.659,900
667, 278, 914
670, 202,278
679,128,842
669,196,320
693,743,885
46,380,006
63,068, 413
77,243.984
44,874,:"-42,672,816
-23,004,229
24,782,168
86,731,644
-67,334,413
-89,423,387
46,380,006
63,068,413
77, 243.984
44,874,695
-42, 672,815
-23,004, 229
24,782,168
86,731,644
-67,334,413
-89, 423,387
$34,107,692
33,148, 280
28,645,700
63,130. 598
32,028,661
66.546, 645
27,144, 433
474,761,819
24,534,810
714,740, 726
27,490, 313
35,119, 382 865,322,642
66,221,206 1.297.665, 224
620,809.417
59,967,866
367, 642.676
87,502,657
377,340, 285
87,894,088
322,865, 278
93,668,286
100,982,167
111, 369,603
103,538,156
115, 746,162
122, 267,644
108, 911, 676
107,823,616
92.167,292
84,944,003
106,069,147
21,342,979
359,
21,311.334
352,
22,616,300
347.
22,899,108
366,
22,863,957
364,
22,902,897
393,
22,900,869
374,
24.742, 702 1,335,
189,743, 277 6,368,
619,215,669
736,021,456 1,020, 251,622
660,373,836
999,144,731
991,000,759
476, 776,194
333,201,362 1,066,923,690
332,249,137
940,602,913
764788—48
19
617,066
201,612
689, 881,334
724, 611,963
735, 081,431
760, 686,802
734, 066.202
1,977, 681, 761
12, 696,702,471
18,614, 879,965
'
-18,106,350
-18,105,360
10.631.399
10,631,399
2,727,870
2,727.870
-400,733
-400,733
-408,264
-408,264
-62,676,975
-62. 675,976
48.478,346
48,478,346
-853,356,956 -853.356, 956
$1,134,234 -9.033,253,840 -9,032,119,606
8,014,750 -13,370,637,669 -13,362,622,819
3,026,117,668 6,403,343,841
78,746, 350
2,348, 332, 700 5,115.927,690 8 422,281,500
422,694,600
1,447,075,808, 3,372,607,900
1,608,461,881 3; 294; 627; 529 402,860,491
467,999,760
1,418,809,0371 3,048,677,965
212, 475,198
86,723, 771
313,801,651
309.657,461
606,366,987
291,221, 648
609,005,271
736,496, 261
712, 507, 952
963,366,737
276
REPORT OF THE SECRETARY OF THE TREASURY
TABLE 2.—Receipts and expenditures,
Expenditures,
excluding d e b t
retirements
Receipts
Year
Internal revenue
Customs
(including
t o n n a g e tax) 7
Income and
profits taxes
Other
receipts 2
Total
receipts 3
Other
War Departm e n t (including r i v e r s a n d
harbors, a n d .
PanamaCanal)*
.$547, 561, 226 $1, 760, 637,824
1925
1926 - _ - . ' . — 679,430,093 1,982,040,088
605, 499,983 2, 224,992,800
1927...
668,986,188 2,173,952, 567
1928
602,262, 786 2,330,711,823
1929........
$828,638,068
865,599,289
644,421, 542
621,018, 666
607,307, 549
$643,411, 667
545, 686, 220
654,480,116
678, 390, 745
492,968,067
$3,780,148,686
3, 962,755, 690
4,129,394,441
4,042,348,156
4,033, 250,225
$370,980, 708
364,089,946
369,114,122
400,989, 683
425,947,194
628,308,036
569,386,721
503, 670,481
858, 217,612
1,822,642,347
2,178,671,390
2,086, 276,174
2,168,726,286
2,647,033,726
2,469,463, 658
551, 645, 786
381, 603, 611
116,964,134
224, 522, 534
161,615,919
179,424,141
216, 293,413
210, 343, 535
208,155, 541
187,765,468
4,177, 941, 702
3,189,638,632
2, 005,725,437
2,079, 696, 742
3,115, 554,050
3,800,467,202
4,115,956,615
5,028,840,237
5,854,661,227
6,164,823,626
464,863,515
478,418, 974
476,305,311
434,620,860
408,686, 783
487,995, 220
618, 587,184
628,104, 285
644,263,842
695,266,481
273, 111, 779
2,640,097,620
514,967,590
3,230,736, 400
285,848,509
4,163,799, 712
4, 947, 297, 425 8 916,386,725
6, 770,620, 418 8 3,292, 202, 529
7,445,980,795 8 3,482,746,869
8,224,746,763 8 3,492, 781,967
8,629,970,108 8 4,829, 216,367
• 6,387,124,670
7,607,211,852
12,799,061,621
22, 281, 642,709
44,148,926,968
46,456,654,680
43,037,798,808
43,258,833,189
907,160,161
3,938,943,048
14,325,508,098
4,2,526,562,623
49,438,330,158
60,490,101, 935
27,986,769,041
9,043,196,394
1930
1931..
1932
1933
1934........
1935
1936
1937
1938..
1939
587,000,903
378,354,005
327, 754,969
250,750, 261
313,434, 302
343,353,034
386,811,594
486,356, 699
359,187, 249
318,837,311
2, 410,986,978
1,860,394, 295
1,057,335,853
746,206,445
817, 961,481
1,099,118,638
1,426, 676,434
2,163,413,817
2, 640,284,711
2,188,757,289
1940
1941
1942..
1943..--.-..
1944
1
1945........
1946.-.-.-..
1947.-
348, 590, 636
391,870.013
388,948,427
324,290,778
431, 252,168
354, 775, 542
436,475,072
494,078,260
2,125,324, 635
3,469,637,849
7,960,464,973
16,093,668,781
34,654,851,852
35,173, 051,373
30,884,796,016
29,305,568,454
NOTE.—For postal receipts and expenditures, see table 12.
not necessarily add to totals.
Figures are rounded to nearest dollar and will
1 From 1789 to 1842 the fiscal year ended Dec. 31; from 1844 to date, oh June 30. Figures for 1843 are for a
half year, Jan. 1 to June 30.
.
2 Comprises railroad unemployment insurance contributions, proceeds of Government-owned securities,
Panama Canal tolls, etc., proceeds from sales of surplus property (act Oct. 3,1944), seigniorage, and other
miscellaneous. For details of Panama Canal receipts, see table 11.
8 Total receipts are exclusive of net receipts under title VIII of the Social Security Act. Amounts representing appropriations equal to "Social security taxes-Federal Insurance Contributions Act" collected and
desposited under see. 201 (a) of the Social Security Act Amendments of 1939, less reimbursements to the
General Fund for those administrative expenses which are not paid directly from the trust fund, are
deducted In the daily Treasury statement from total receipts. Such amounts are reflected under trust
account receipts as net appropriations to the Federal old-age and survivors insurance trust fund.
REPORT OF THE SECRETARY OF THE TREASURY
277
fiscal years 1789 through 1947^—Continued
Expenditures, excluding debt retirements—Continued
on
Navy Departs Interest
the public
ment*
debt.
$346,142,001 $881,806,662
312, 743,410
831, 937, 700
318,909,096
787,019, 678
331,336,492
731, 764, 476
364, 561, 644 678,330,400
374,166,639
364, 071,004
367,617,834
349,372, 794
296,927,490
436, 265, 532
628,882,143
566,674,066
596,129,739
672,722,327
891,484,623
2,313,067,956
8,579,688,976
20,888,349,026
26, 537,633,877
30,047,162,135
16,160, 754,034
5,576,239,640
659,347,613
611, 669, 704
699, 276, 631
689,366,106
756, 617,127
820,926,353
749,396,802
866,384,331
926, 280, 714
940, 639,764
1,040,935, 697
1,110, 692,812
1,260,085,336
1,808,160, 396
2, 608,979, 806
3,616,686,048
4, 721, 957, 683
4, 957,922, 484
All other 8
Surplus or deficit ( - )
Statutory
debt retirements
Total expend- ing fund,(sinketc.) Gross (includ- Net (excluditures, excluding debt retire- ing debt reing debt rements)
tirements)
tirements
$1,464,175,961 $3,063,105,332 $466, 538,114
1, 588,840, 768 3,097, 611,823
487,376,051
1,498,986,878 2, 974, 029, 674 619, 664,845
1, 639,175, 204 3,103, 264, 865
540, 266,020
1,830,020,348 3,298,869,486
649,603, 704
1,941,902,117
2, 207, 466,030
3, 307, 915, 369
3, 207,990, 066
5, 283,054, 592
4,846,332,198
6, 643, 639, 716
5, 755,098, 270
4, 884, 603, 629
6, 718, 463, 094
$250, 605, 239 $717,043,353
377, 767,816
865,143,867
636,809, 921 1,166, 364, 766
398,828, 281
939,083,301
184, 787,036
734,390,739
183,789, 216
3, 440, 268, 884 653,883,603
7.37,672,818
3, 651, 615, 712 . 440, 082,000 -901,959, 080 -461,877,080
4, 741,015,145
412, 629, 750 -3,147,919, 458 -2,736,289,708
4, 681,348,826
461, 604,800 -3,063,256,885 -2,601,652,085
6, 745,185,992
359,864,093 -3,989, 496, 036 - 3 , 629, 631,943
6, 591, 519,302
573, 658, 260 -3,364, 610,360 - 2 , 791, 052,100
8, 640, 605,845
403, 240; 150 - 4 , 827, 789,380 -4,424, 649, 230
7,806, 260,952
103,971, 200 -2,881,391, 914 - 2 , 777, 420, 714
7,031, 277,824
65,464, 950 -1,242,081,648 -1,176,616,598
9,026,981,666
68,246, 450 - 3 , 920,404, 490 -3,862,158,04O
6,465,563,459 9,305,143,830
6, 403, 790, 63013, 766, 484, 446
10,124,121,943 34, 289,304,353
14, 480,001,130 79, 702, 073,074
16, 987,375, 669 96, 672,319, 510
16, 243, 530, 587100,397,470,706
15, 844, 488, 66963, 713,969,417
22, 928, 687, Oil 42, 505,045, 529
129,184,100 - 4 , 047, 203, 261 -3,918, 019,161
64, 260, 500 - 6 , 223, 533,094 -6,159,272, 694
94, 722, 300 -21,584,965,032 -21,490,242,732
3,463, 400 -57,423,893,766 -57,420,430,365
1,650 -51,423,394,191 -51,423,392,541
2,000 -53,940,918,126 -63,940,916,126
4,000 -20,676,174,609 -20,676,170,609
763,787,660
753, 787, 660
4 Excludes civil expenditures under War and Navy Departments in Washington through 1915. For
details of Panama Canal expenditures, see table II. Complete expenditures for "National defense and related
activities" for 1946 and 1947 are shown in table 4.
8 Includes civil expenditures under War and OTavy Departments in Washington, through 1915, and
unavailable funds charged off under act of June 3, 1922 (42 Stat. 1592). Figures for 1932 through 1946 have
been revised to include expenditures fof "Govemment corporations (wholly owned), etc. (net)." See
table 1.
'
8 Receipts and public debt retirements for 1921 exclude $4,842,066.45 written off the public debt Dec. 31,
1920. See footnote 2, table 34.
1 Beginning with 1932, tonnage tax has been covered into the Treasury as miscellaneous receipts included
in "Other receipts."
8 Includes deposits resulting from the renegotiation of war contracts. See footnote 2, table 1.
Detailed tables on receipts and expenditures
(X)
TABLE 3.—Classification, of monthly and total receipts, fiscal year 1947 and comparative totals for 1946
[On basis of daily Treasury statements, see p. 265.]
P A R T A. B U D G E T R E C E I P T S
Fiscal year 1947
O
Source
J u l y 1946
Internal revenue:
Income tax:
Withheld b y employers
O t h e r -.
Miscellaneous i n t e r n a l r e v e n u e
Social s e c u r i t y taxes:
E m p l o y m e n t taxes
T a x on e m p l o y e r s of 8 or more
T a x e s u p o n carriers a n d their employees
Railroad u n e m p l o y m e n t insurance contributions.
Customs
S u r p l u s p r o p e r t y (act Oct. 3,1944):
Proceeds from sales
Other
Unclassified--.--.
O t h e r miscellaneous receipts:
Proceeds of G o v e r n m e n t - o w n e d securities:
Principal—foreign obligations ...
.
Interest—foreign obligations
Other
- - _ J..
P a n a m a C a n a l tolls, e t c
Seigniorage
.
.
Surplus postal revenues
Other...
"
.
S e p t e m b e r 1946
October 1946
N o v e m b e r 1946
D e c e m b e r 1946
J a n u a r y 1947
$765,884, .155.27
2,119,664,452.56
721,978,251.41
$546, 474,'554.78
2,117,356,510.92
693, 223,069.02
276,193,145.87
9,325,181.41
4, 719, 672.58
115,887.66
44, 746, 490.12
7,185,307.76
788, 687.78
77,771,613.45
. 3,477,472.75
43, 352, 412.35
42, 263,443.33
14,399,193.20
1, 499,122.20
1,030.36
46, 992,867.60
w
o
$514,417,424. 67 $1,069, 849, 274.30
443,225, 594.07
974, 251, 825.94
679,423,694.39
695,409, .423.30
$704,856,910.81
2,845,165; 703. 20
656,162, 489.01
62,316, 889. 20
2, 245,125.11
2,257,008.03
6,418. 99
44,088, 695.61
284, 345,467.61
9, 998,084.42
7, 616, 931.39
46, 201.06
39,995,087.39
8,338,848.10
1,144,959. 50
75, 540,045. 32
3,548,761.83
42,416,946. 78
188, 798,424. 52
3,435.90
a 226, 565.12
122,838,324.32
•111.20
« 1,316, 728.94
66, 669,184.81
2, 530. 57
4,278, 821.27
183,119, 348. 42
1,197.98
o 2, 798,335.69
98,101, 744.13
2,318.88
59, 862. 66
192,893,666.73
70.00
199.90
90,913,176.84
1,490.00
« 30,306.64
61,442,223.34
1, 581,457. 34
4,683, 599.07
2,002, 678.07
1,869,165. 63
6,831,017.01
903, 798. 63
708,971.18
5,975,035.21
1, 214, 257.89
2,410, 249. 68
6,081,637. 50
2, 640,691.39
2, 974, 555. 52
4,887, 790.92
101,657.06
157,822.68
11,039, 880.08
1, 592, 750.92
10, 923,819.00
46,948,167.99
1,393, 768.43
2, 574,188.24
59, m , 008.30
60,420, 883.85
65,405,417.35
151,443, 242.04
83i 003, 710.49
156,328, 742:83
267,073, 203.69
fel
>
Totalreceipts
-- 2,600,294, 294.10
D e d u c t : N e t a p p r o p r i a t i o n to F e d e r a l old-age a n d
s u r v i v o r s i n s u r a n c e t r u s t fiind 1, .__
61,347,102.84
N e t b u d g e t receipts
A u g u s t 1946
2, 638, 947,191.26
$557,384, 552.82 $1, 111, 490,798.61
' 846,651,988.51
332,043, 732.30
752,134,335. 27
668, 979,810.90
69,951, 727. 61
2, 212, 594. 56
2,137, 315. 25
. 13,764.03.
44,984,334. 21
W.
m
fel
Q
n
>
o
"^
M
fel
t ^
2, 717,145. 785. 77
•4,481,118,423.57
2, 616,942,209. 98
2,639,185, 293.44
4,113,140, 962.53
3,860,083,480.96
283,376, 681.25
2 3,489,916.30
« 72, 686,390.67
274, 948, 663.49
5,940.825.38
40,443,898. 91
d
2,433,770,104. 52
4,477,628, 507.27
2, 644,355,819.31
2,364,236,629.95
4,107, 200,137.15
3,819,639, 582. O'S
K|
Ul
Fiscal year 1947
Total fiscal year
1947
Source
February 1947
March 1947
April 1947
May 1947
June 1947
Total fiscal year
1946
Internal revenue:
Income tax:
$785,458,844.49
$778,170,985.41 $10,013,085,788.39 $9,391,698,367.42
$584,448,420.16 $1, 218,347,063.92
Withheld by employers....
$1,376,302,803.26
400,382,977.25 2,491,656, 986.95 19,292,482, 665. 80 21,493,097,648.98 O
Other
1,845, 319,030.06 3, 864, 598,030.56 1,012,165,833.48
637,530,324.65
595, 242, 544.86 , 601,639,871.02 8,049,467, 726.22
7, 724, 778.169.47
Miscellaneous internal revenue
665, 880,942.91
681,862,969. 68
Social security taxes:
7,949,694.44 1,459,491,921.30
340,381,802.96
Emplo3anent taxes.
^
1
25,376, 787. 51 . 69,005,410.13
1, 238,218,447.01
266,183,396. 78
11,924,274.38
1,346,800.82
184, 823,468.19
Tax on employers of 8 or more....^-._....
12,043, 501.21
3, 547, 586.34
179, 930,177.86 O
115, 847,479.46
12,185,458. 87
112,011,162.38
380,057,125.30
Taxes upon carriers and their employees
76, 783, 785.10
2,608,030.01
282, 610,497.22
4, 927,080.72
148,807.11
3, 248, 668.18
14,174,001. 69
Railroad unemployment insurance contributions.
3, 417, 604.89
33,882.97
12, 912, 407.65
115,601.86
Customs.
36,135, 303. 66
494,078, 259. 72
38,854,010.85
40,787,991. 66
37,023,806.99
435,475,071.97 .
35,700,412.61
Surplus property (act Oct. 3,1944):
126,237,692.29
463,377, 980.22 1,011,164,537.05 2,885, 777, 763.89
500, 768,856.19 fel
. Proceeds from sales...:
242,958,953.45
108, 704, 731.11
1,064.39
29,600.47
12,110.97
3,166.79
107, 272.94 Ul
Other
423.67
1, 680.12
o 10, 696.15
Unclassified
.
29,906,034.42
o 14, 674,052.00
o 7,877.04
2,374.25 fej
15,009,112.09
•30,310,862.06
Other miscellaneous receipts:
o
Proceeds of Government-owned securities:
8, 775.80
110,432.86
107,198.84 fel
Principal—foreign obligations
156,076.44
313,899.12
. 317,335.64
Interest—foreign obligations
138,187, 267.99
259,300,419.30
144, 994,692. 75 >
1,984,676.31
866, 694.37
1,054, 876.42
2,116,407.82
Other
2, 519, 302.49
21,233, 988. 55
20, 653, 680.05
1,624,072. 51
1. 770, 573.32
1, 759,044. 24
1,030, 077.39
Panama Canal tolls, etc
3, 657, 754.09
60,107,887.03
53, 613, 667.20
2,324,499.23
3, 225,410.88
4, 538,142.12
Seigniorage
4,504,993.76
12,000,000.00
Surplus postal revenues
.
12,000,000.00
o
Other...:.
100, 420,321. 76
113. 926,206.03
91,316,680.19
154, 789, 670. 59
293,032,982.75 31,676,179,069.87 ' 2, 759,404, 582. 60 fel
Totalreceipts
Deduct: Net appropriation to Federal old-age and
survivors insurance trust fund i.
Net budget receipts.
4,642, 784,872.26
6, 724,184,882.15
2,623,944, 963.92
3,204,098, 796.17
6,479,779,356.71 44,702, 703, 321.55
44,238, 690,336.84
264,363, 852.36
23, 557, 243.08
67,831,960.46
339,208,353.28
6, 776, 244. 74 1,443,870,132. 75
1, 200,791,528.-79
5, 473,003, 111. 97 43, 258,833,188.80
43,037,798,808.05
4,378,421,019. J
6, 700,627, 639.07 2, 556,113,003.47
" Counter-entry receipts (deduct).
^ Represents" appropriations equal to "Social security—Employment taxes" collected
and deposited as provided under sec. 201 (a) of the Social Security Act Amendments of
1939 less reimbursements to the General Fund for those administrative expenses which
are not paid directly from the trust fund. Such net amount is .reflected as net appropriations to the Federal old-age and survivors insurance trust fund.
2, 864, 890,442.1
2 See footnote 2, p. 281.
3 Includes deposits resulting from the renegotiation of war contracts. Information
regarding the amount of such deposits is not available on the basis of daily Treasury
statements. On the basis of covering warrants such deposits totaled $1,062,830,029.06
for 1946 and $278,954,680.66 for 1947.
M
fej
Ul
d
bO
CO
TABLE 3.—Classification of monthly and total receipts, fisccil year 1947 and comparative totals for 1946- -Continued
CX)
O
PART B. TRUST ACCOUNTS, ETC., R E C E I P T S
Fiscal year 1947
Source
A u g u s t 1946
J u l y 1946
T r u s t funds a n d accounts:
F e d e r a l old-age a n d s u r v i v o r s i n s u r a n c e t r u s t
fund:
Appropriations
Less r e i m b u r s e m e n t s to General F u n d
N e t appropriations '
I n t e r e s t on i n v e s t m e n t s
.
Netreceipts
N a t i o n a l service life i n s u r a n c e fund:
I n t e r e s t on i n v e s t m e n t s
..
P r e m i u m s a n d o t h e r receipts- .
•
.
Transfers from General F u n d
R a i l r o a d r e t i r e m e n t account:
I n t e r e s t on i n v e s t m e n t s
Transfers from General F u n d
.
U n e m p l o y m e n t t r u s t fund:
D e p o s i t s b y S t a t e s . - —.I n t e r e s t on i n v e s t m e n t s
R a i l r o a d u n e m p l o y m e n t i n s u r a n c e account:
Deposits b y Railroad Retirement
Board
..Transfers from States (act J u n e 25,
1938)
Transfers from railroad u n e m p l o y
m e n t i n s u r a n c e a d m i n i s t r a t i o n fund
(act Oct. 10, 1940)
O t h e r t r u s t funds a n d a c c o u n t s :
A d j u s t e d service certificate fimd:
I n t e r e s t on loans a n d i n v e s t m e n t s
A l a s k a R a i l r o a d r e t i r e m e n t fund:
D e d u c t i o n s from employees' salaries,
etc
.
I n t e r e s t on i n v e s t m e n t s
Transfers from General F u n d ( U n i t e d
Statesshare)
C a n a l Zone r e t i r e m e n t fund:
D e d u c t i o n s from employees' salaries,
etc - . _.
_ -_
I n t e r e s t on i n v e s t m e n t s
Transfers from General F u n d ( U n i t e d
FRASER
Statesshare)
Digitized for
S e p t e m b e r 1946
October 1946
N o v e m b e r 1946
D e c e m b e r 1946
J a n u a r y 1947
fel
o
$62, 316, 889. 20
969,786.36
$284,345,467.61
969, 786. 36
$8, 338,848.10
2 4.848,931.80
$69, 951, 727. 61
b 2 2, 634, 663.06
$276,193,145.87
1,244,482. 38
$7,185, 307. 76.
1, 244,482. 38
61, 347,102. 84
283, 375, 681.25
3,489,916. 30
9, 241, 678.12
72, 586. 390.67
59, 612. 77
274,948, 663. 49
5, 940,825. 38
11, 237, 500.00
40,443, 898.91
33 665 081 52
61,347,102.84
283, 375, 681. 25
12,731,594.42
72, 646,003.44
274,948, 663. 49
17,178,325. 38
74,108,980. 43
60,910, 085. 65
225,751,116.78
39, 973, 206.19
13,150, 363. 53
41,930.057. 70
32, 276, 369.63
40, 459, 490. 75
3, 640.945. 51
31,144, 464.88
26,659,631.69
42,152, 599. 93
20, 692,438. 68
43 280 008 78
26, 716,997.46
17.465.75
165, 233, 000.00
52,150. 69
89, 753. 42
120, 945. 21
44,000, 000. 00
152, 013. 70
188,791.13
245 038 00
44,000,000.00
40,043.359.78
27, 513. 59
207,952,130. 62
8, 377, 097. 43
3,809, 612. 77
42,045,161. 60
179,093.07
154, 349,824. 35
16, 824, Oil. 79
5,125,000. 00
37,188, 582 01
63, 304, 859. 75
58,199.08
740,176. 74
124, 424.97
1,042,988.88
31, 298, 760. 24
28, Oil. 44
fel
21, 872. 00
39,'500. 00-
W
.
$42, 263,443. 33
1,819,544.-42
o
fej
Ul
fej
o
>
o
31,615, 688.81 ^
110, 809.00
86,823.40
fej
9, 214, 985. 00
SJ
fej
46, 274. 52
54.79
190.94
162. 79
106. 75
97.32
5,679.13
494 000 00
. 4, 515.23
31, 330.43
62,680.77
6, 695. 75
571. 61
46,009.93
21, 458. 35
87,001. 36
12,870.24
762.74
173,645.00
1,728. 77
87,120. 70
653.15
13, 207. 53
1,939.73
181,592.11
2,849. 32
217, 000.00
92,915.78
315.07
1,177, 000.00
•
>
Ul
d
Fiscal year 1947
Source
Trust funds and accounts:
Federal old-age and survivors insurance trust
fund:
Appropriations
1
Less reimbursements to General F u n d —
Net appropriations L_
Interest on investments
_
_
Net receipts
National service life insurance fund:
. TTitp,re.st on invftstTnents
Preminms and other receipts
Transfers from General Fiind.
Railroad retirement account:
Interest on investments. . . . . . .
...
Transfers from General Fund
Unemployment trust fund:
Deposits by States -...
...
. .
Tnterp.st on investments
Railroad imemployment insurance account:
Deposits by Railroad Retirement
Board..- . . . . Transfers from States (act June 25,
1938)Transfers from railroad unemployment insurance administration fund
(act Oct. 10, 1940)
Other trust funds and accounts:
Adjusted service certificate fund:
Interest on loans and investments
Alaska Railroad retirement fund:
Deductions from employees' salaries,
etc
Interest on investments .
Transfers from General Fund (United
States share)
Canal Zone retirement fund:
Deductions from employees' salaries,
etc..
Interest on investments
Transfers from General Fund (United
Statesshare)-..
b Counter-entry (add).
' See footnote 1, p. 279.
May 1947
June 1947
Total fiscal year
1947
Total fiscal year
1946
February 1947
March 1947
$266,183, 396. 78
1,819, 644.42
$25, 376, 787. 51
1,819,544,43
$69,005,410.13
1,173,449.68
$340, 381,802. 96
1,173,449.68
264,363,852.36
23,557,243.08
9,241,678.13
67,831, 960.45
339,208,353.28
6, 776, 244. 74 1,443,870,132.75
163,465, 576.10
100,020,025. 56
1,200,791,528.79
147, 765, 515.37
264,363,852.36
32,798,921. 21
67,831,960.45
339,208,353.28
106, 796, 270. 30 1,607,335,708.85.
1, 348, 557, 044.16
49,497,195.95
15,787, 746.00
45,813, 574.44
995,354.41
51, 659,135.93
1,108, 572. 31
41,087, 725. 21
431, 765,966.80
170,873,180.16
38, 687, 503.84
18,116,904. 28
170,873,180.16
516, 595,049. 25
816, 662,407.08
255, 348.96
309,863. 01
358,767.12
45, 230, 000.00
420,821.92
21, 976, 315.09
24,187, 274.00
298, 463, 000.00
173,982, 230. 66-
14,964,134.45
3,849, 706. 50
42, 574, 913.01
237, 223.75
1, 021, 762.81
30, 757,850. 22
317, 301.10
93, 471.00
36,265.00
April 1947 .
$7,949, 694. 44 $1,459,491, 921.30 $1,238, 218,447.01
15, 621, 788. 56
1,173,449.70
37,426, 918. 22
1,009, 908,856.23
143, 594, 522.15
127, 575, 945.89
116,213, 535.63
, 29, 238, 679. 60
44.5, 855. 51
. 57,115.11
O
fel
124,856, 599. 37 1-9
844, 723, 350. 32
1, 381, 406, 975.01 fel
19,881, 328. 77 Ul
291,913,000.00 fel
249, 281,862. 95 • 17, 690,117.47 1,005, 273,426. 62
146,887,809.16
70, 354, 799. 73
1, 332,102.00
hj
O
o
fel
444, 214. 34 • o
fel
9, 214, 985.00
9,617, 970.00
2,542.99
504, 245.06
559, 726.97
37, 764. 39
100, 856. 22
316, 325. 31
101,482.52'
282, 792. 73
88, 454. 03
217,000.00
217, 000.00
W
fel
-
75.11
10.90
87. 35
1,391.78
23, 382.00
18,715. 31
27, 668.63
30.00
99,646.69
.
118, 735.80
1,474. 52
90, 364. 63
87,568.62
2, 712. 33
39, 530. 52
470,011.06
1,084,198.87
482,446.69
1,087, 728. 77
449, 659. 31
1,177, 000.00
1,177,000.00
>
Ul
d
.....
2 This amount was overstated by $3,879,145.44 in the Daily Statement of the United
States Treasury for September 30. Adjustment thereof was made in the daily statement
for October 31.
.
fcO
(X)
i—^
TABLE 3.—Classification of monthly and total receipts, fiscal year 1947 and comparative totalsJor 1946—Continued
00
P A R T B. T R U S T ACCOUNTS, ETC., RECEIPTS—Continued
Fiscal year 1947
Source
July 1946
August 1946
September 1946
October 1946
. November 1946
December 1946
January 1947
td
fel
hd
Trust funds and accounts—Continued
Other trust funds and accounts—Continued
Civil service retirement fund:
Deductions from employees' salaries,
etc
District of Columbia share
Interest and profits on investments...
Transfersfrom General Fund (United
States share)
District of Columbia:
Revenues from taxes, etc
Transfers from General Fund (United
States share)
Foreign service retirement fimd:
Deductions from employees' salaries,
etc
_
Interest on investments
. Transfers from General Fund (United
States share)
Government life insurance fund:
Interest and profits on investments...
Premiums and other receipts
Indian tribal funds..
Insular possessions
:
Other
Increment resulting from reduction in the
weight of the gold dollar
Seigniorage*
•
Unclassified
Total trust accounts, etc., receipts
o
%
$21,396,483.13
1,193,000.00
$23,625,379.28
$20,189,654.81
$16,184,035.66
68,082.19
116,712.33
162, 547.95
2,443,307.96
8, 522,803. 20
$23,669,793.63
$22,968,688.15
$21,348,131. 26
193,972.60
250, 739.73
220,100,000.00
2,617,665.11
W
fel
14,236,088.43
3,269,024.64
2,821,096.21
4,114,261.87
Ul
fej
o
8,000,000.00
7,476. 55
381.37
13,720.73
286.03
15,947.41
333.37
23,633.80
979. 73
18,626.00
1,454. 79
28,453.90
1,823. 56
17,630,502.89
6,360,862. 72
642,936.95
26,294.93
31,170,088.13
4,023,413.82
4,190,008.09631,480.71
70,372.12
108,726,638.29
6.245,368.19
3,073,685. 54
. 855,355.61
618.97
56,494,559.08
8,150,142.40
5,379,574.27
805,960.89
36,115.93
22,198,116.38
2,607,482. 58
3,317,312.00
520,716.33
1,881,848.75
4, 514, 593.86
1,303,488.85
32,725, 601.98
28,231, 780. 25
25,380.82
6,677,410. 60
886, 693.92
1,631. 22
21,699, 992.15
7,746.67
6,655.42
4, 522.61
5,34L68
3,318.23
11,355.81
6, 673.95
« 2,370, 509. 79
» 88, 665,261. 76
46,877,398.79
43,987,816.17
2, 577,873.86
« 144,920.45
« 1, 701,180.04
861,993,759.69
600,263,250. 58
272,269,986.27
314, 682,969. 68
656,998,361.19
196,350,519.29
341,851,691.18
20,282.14
219.18
O
fej
1,051,000.00
o
fel
W
fel
td
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d
td
Fiscal y e a r 1947
T o t a l fiscal y e a r
1947
Source
F e b r u a r y 1947
T r u s t funds a n d accounts—Continued
O t h e r t r n s t funds a n d a c c o u n t s — C o n t i n u e d
Civil service r e t i r e m e n t fund:
D e d u c t i o n s from e m p l o y e e s ' salaries,
etc
-D i s t r i c t of C o l u m b i a share
I n t e r e s t a n d profits o n i n v e s t m e n t s - . .
T r a n s f e r s f r o m General F u n d ( U n i t e d
States share)
D i s t r i c t of C o l u m b i a :
R e v e n u e s from taxes, e t c
T r a n s f e r s f r o m General F u n d ( U n i t e d
States share)
Foreign service r e t i r e m e n t fund:
D e d u c t i o n s from e m p l o y e e s ' salaries,
etc
'
I n t e r e s t on i n v e s t m e n t s - . .
Transfers from General F u n d ( U n i t e d
States share)
G o v e r n m e n t life insurance fund:
I n t e r e s t a n d profits on i n v e s t m e n t s
P r e m i u m s a n d other r e c e i p t s . . .
I n d i a n t r i b a l funds
I n s u l a r possessions
Other
. .
I n c r e m e n t resulting from r e d u c t i o n in t h e
w e i g h t of t h e gold dollar
Seigniorage *
Unclassified
T o t a l t r u s t accounts, etc., receipts
M a r c h 1947
M a y 1947
T o t a l fiscal y e a r
1946
J u n e 1947
hj
O
$21,095,122.41
$20,643,495.46
105,643.84
324,273.97
2,656, 575.94
23,176.01
2,112.88
10,714,463.06
77,998.44
$23,790,213.36
$19,673,448.93
253,150.68
11,692,218.86
27,857.73
5,815,179.15
29,692; 78
$22,986,236. 72
92,938,966.07
2,902,628.58
26,389. 73
369,116.31
$257,360,682.68
1,193,000.00
94,394,089.36
$279,064, 674.19 ^td
1,220,000.00
84,430,220.33
o
220,100,000.00
245,000,000.00
fel
71,706,202.01
65, 724,699.46
W
8,000,000.00
6,000,000.00
313,255. 22
376, 706. 22
159, 702.18
343,098.80
fej
Ul
fej
otd
fej
1,051,000.00
4,142, 642.62
1,040,364.44
702.92
274,187,389.42
4,084,223.80
1,270,052. 71
« 2,435. 27
129,216,656.93
6,079.08
5,273.34
4,226, 738. 73
870,464.96
506.06
91,051,115.69
922,800.00
116, 506.85
4,865,964.63
532,202.80
624. 26
« 178,720,978.86
39,603, 766.16
4, 111, 151.16
879,327.14
5,300. 50
84,215,736.36
80,184,402.46
53,844,068.02
10,138,944.31
139, 731. 64
700,196,494.80
45,122,679.22
57,851, 689. 55
13,380,933. 96
152,186.41
1,332,667,433.52
3,496. 24
13,600.33
80,295.11
%
o
fej
1^
W
« 7,194,627.80
"6,104,917.60
12,387,876.89
1,811,123.76
459,606.73
1,930,278.75
99,036.66
248,298,453. 74
« 562,014.63
801,189, 793.20
289, 763,843.81
363,619,064.10
917,626,061. 22
722,896,190.44
6,228,406,490.55
7,674,864,351.18
td
fej
« Counter.entry (deduct) caused by transfer of trust receipts to the classification "Receipts: Surplus property (act Oct. 3, 1944)" as proceeds from sale of vessels by United
States Maritime Commission pursuant to provisions of act March 8,1946.
Ul'
« Counter-entry receipts (deduct).
4 This item of seigniorage represents the difference between the cost value and the
monetary value of silver bullion revalued and held to secure the silver certificates issued
on account of silver acquired under the Silver Purchase Act of 1934. .
A p r i l 1947
6,331.86
fej
>
d
td
to
(X)
CO
T A B L E 4.—Classification of monthly and total expenditures, fiscal year 1947 and comparative totals for 1946
(X)
[On basis of daily Treasury statements (see p. 265), adjusted to provide uniform classification of expenditures on a basis comparable to that in effect during the fiscal year ended Jun^
30,1947, including changes as a result of Executive orders involving reorganization^]
^^
Fiscal year 1947
Summary
July 1946
August 1946
September 1946
October 1946
November 1946
December 1946
January 1947
PART A. BUDGET EXPENDITURES
td
• fej
hJ
O
td
I. General (see p. 286).$2,693,706,316.90 $1, 273,918, 793.61 $1, 718,387, 541. 63 $1,494,326,776. 87 $1,094, 246,180.16 $2,017, 292,964. 52 $1, 522,923,936.16
II. National defense and related activities (see
p. 294)
-1,189, 697, 556.18 1, 509,404,896. 77 1,100,446,182. 63 1,481,185,269.67 1,436.414,616. 58 1,579,625.883. 46
1,411,623, 662. 85
32,276,369. 63 . 47,640,945.51
26, 659, 631. 69
20, 692,438. 68
13,160,363. 53
III. Transfers to trust accounts, etc. (see p. 298)..
630, 744,101. 78
70, .716,997.46
IV. Government corporations (wholly owned),
136,023,383. 70
« 96,125,376. 24
« 58,649,123.07
« 28,118, 790. 76
44,719,395.78
etc. (net) (seep. 298)
107,939,625.34
" 870,490, 585.14
o
Total, excluding statutory debt retirements. 3,643, 557,389. 72 2,932,497,437. 61
V. Statutory debt retirements (see p. 298)
Ul
Total budget expenditures..
3,643,557,389.72
2.932,497,437. 61
2, 754,984, 717. 65 2,964, 503,868. 98
2, 529, 201, 637. 67 3,662,330,682. 44
3,113,204,221.81
2, 754,984, 717. 65 2,964, 503,868. 98
2,529,201,637.67
3,662,330.682.44
3,113, 204, 22L 81
Total trust accounts, etc., expenditures..
fej
fej
o
PART B . TRUST ACCOUNTS, ETC., EXPENDITURES
I. Trust funds and accounts (see p. 300)
II. Special deposits (net) (seep. 302)
III. Sales" and redemptions of obligations of
Government corporations, etc., in the market
(net) (see p. 302)
IV. Clearing account for outstanding checks
(see p. 302)
---
fel
w
843,872,143. 68
173,999,515. 70
530, 268, 280. 40
« 93,826,911. 67
759, 285,444.40
» 102,087,678.84
270,987,819. 51
« 54,849, 556.35
396,675,186. 08
119,246,885.87
476,090,147.65
226, 709,827.01
291,036, 550.61
44,050,143.81
113,890,913.69
a 42,303,446. 72
»18,965,232. 70
» 21,833,321.89
21,911, 302.87
6,492,176.91
75,266,341., 30
» 317, 514, 733. 69
« 27,438,432. 99
48,103,892.30
» 35, 908,338. 79
814,247,839.48
366, 699,489.12
686,336,425.16
158,396, 602.48
td
n
o
fel
y ^
4, 264, 940. 50
642,098,315. 32
» 33, 776, 563.89
56,028,307.06
W
675, 515, 587. (
466,381,342. 78
>^
fej
td
fej
>
Ul
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td
F i s c a l y e a r 1947
T o t a l fiscal y e a r
1947
Summary
F e b r u a r y 1947
P A R T A.
BUDGET
M a r c h 1947
A p r i l 1947
M a y 1947
T o t a l fiscal year
1946
J u n e 1947
EXPENDITURES
td
I . General (see p . 287)
$2,473,340,104.36 $2,063,367, 796. 73 $2,206,142,143.47 $2, 706,488,804.11 $3,058,683, 789. 55 $24,322,825,148.07 $14, 658, 510,998.06
I I . N a t i o n a l defense a n d related activities (see
p . 295)
1,456,985,001.96 1,427,652,954.47 1, 728,083,016.15 1,327,260, 218. 74 1,493,413,158.12 17,141, 692,417. 58 48, 541,675,174. 67
995,354.41
15,787,746.00
18,116,904. 28 1,354,885,392.08
1,918,441,818.26
I I I . Transfers t o t r u s t accounts, etc. (see p . 2 9 9 ) . . .
46,338, 572.31
431,765,966.80
I V . G o v e r n m e n t corporations (wholly o w n e d )
106,241,
582.
90
«
614,043,
513.89
969,806,658.31
« 314,357,429. 21 «1,304,668, 673. 51
« 31,790, 667.10
20,129,880.96
etc. (net) (see p . 299) _ _.
T o t a l , excluding s t a t u t o r y d e b t r e t i r e m e n t s .
V. S t a t u t o r y d e b t r e t i r e m e n t s (see p . 299)
Total budget expenditures..
3,914,322,255.22
'8, 257,688. 51
4,000,693,612.89
3,851,471,475. 76
5,540,020,510.26
42, 605,045, 528. 52
63,713,969,417.48
4,000.00
3,914,322,285. 22
3, 698,257,688. 51
4,000,693,612.89
3,851,471,475.76
5, 540,020, 510.26 42, 505,045, 628. 52
63,713,973,417.48
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t ^
W
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Ul
P A R T B . T R U S T ACCOUNTS, E T C . , E X P E N D I T U R E S
I . T r u s t funds a n d accounts (see p . 301)
I I . Special deposits (net) ( s e e p . 303).
I I I . Sales a n d r e d e m p t i o n s of obligations of
G o v e r n m e n t corporations, etc., i n t h e m a r k e t
(net) (see p . 303)
.
I V . Clearing account for o u t s t a n d i n g checks (see
p. 303)..—
-.
T o t a l t r u s t accounts, etc., e x p e n d i t u r e s
»Excess of credits ( d e d u c t ) .
327, 791,135. 57
145, 752, 702. 28
425,305,511.84
« 71,401,209. 29
245,157,334.84
»100,945,650.80
812,928,227.32
38,818,993.10
1,221,262,357. 79
46,042,808.12
6,600,660,139.69
371, 509,869.04
7,456,876,140.04
646, 653,349. 75
113,145, 652. 54
7,692, 263. 68
7,059,171.42
3,387,999.18
93,016, 603.96
368, 760,424.14
94,912,071. 73
« 102,031,431. 54
« 39, 293,173.11
» 67,103,649. 59
» 36,789,973. 72
« 3,247,823.32
V554, 706,980. 68
484,658,058.86
322,303,393. 02
84,167, 205.87
818,345, 245.88
1,357,073,946. 55
6, 776, 223,452.19
' fel
a
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8,198,441, 561.52
fel
W
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bO
(X)
CTI
TABLE
4.-
-Classification of monthly and total expenditures, fiscal year 1947 and comparative totals for 1946—Continued
PART A. B U D G E T E X P E N D I T U R E S
to
(X)
Fiscal y e a r 1947
Details
J u l y 1946
I. G e n e r a l :
Agriculture D e p a r t m e n t :
. F a r m Credit Administration a n d agencies:
C r o p loans
.Federal F a r m Mortgage Corporation:
Capital stock. R e d u c t i o n in interest r a t e on
mortgages
Federal land banks:
Capitalstock- .
"
Paid-in surplus
R e d u c t i o n i n interest r a t e s on
mortgages - .
P r o d u c t i o n credit c o r p o r a t i o n s capital stock
-.
.-Other
Farmers' Home Administration:
F a r m e r s ' c r o p loans, e t c
.
Farm tenancy
.'...
Flood loans a n d g r a n t s
Loans, rehabilitation and other
Production and Marketing Administration:
A d m i n i s t r a t i o n of Sugar A c t of 1937.
Commodity Credit Corporation:
P a y m e n t to C o r p o r a t i o n for
p o s t w a r price s u p p o r t of agriculture
;.
R C/Storatioh of capital impairment
Conservation a n d use of agricult u r a l l a n d resources--. .
Exportation and domestic consumption of agricultural c o m m o d i t i e s Federal Crop Insurance Act:
Administrative e x p e n s e s — . . . . .
F e d e r a l C r o p I n s u r a n c e Corporation—capital stock
Local A d m m i s t r a t i o n , Sec. 388,
Agricultural Adjustment Act of 1938.
N a t i o n a l - S t a t e expenses. Sec. 392,
Agricultural AdjustmentAct of 1938.
P a r i t y P a y m e n t s a n d Price Adjustm e n t Act of 1938
..
Salaries a n d expenses. M a r k e t i n g
Service
.
Other
A u g u s t 1946
S e p t e m b e r 1946
October 1946
N o v e m b e r 1946
D e c e m b e r 1946
J a n u a r y 1947
td
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« $135,410.87
« $918,861. 59
o $2,424; 304. 27
« $2,428,395.81
« 6,000,000.00
a 7, 000,000.00
,
$195,531.82
$45,153.86
$21. 753 62
» 6, 000, 000.00
« 6,000,000.00
« 7, 000, 000. 00
O
o
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« 79,045.00
« 63,055. 00
.
W
fej.
Ul
725, 214. 64
« 612. 268.11
460,477. 69
1, 726, 674. 75
39, 672.26
. 310,330.31
3, 286, 231. 57
330, 556.94
« 222,844.11
2,804,039.25
270,307.84
» 62, 224. 62
2,365,953.30
280, 981. 79
70.80
2,405,933.14
3,256,806.18
465,836.23
193,153.20
a 124,853. 79
109,138.35
« 2,127, 902.72
301,469. 62
0,354,829 27
265, 974. 64
2,176, 975. 73
2, 644, 758.24
2,603,470.41
10,594, 460.22
2,186, 635.46
2,210, 649. 21
<» 2,278,492. 35
252,145.42
428,124.92
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254, 599. 87
>
td
^
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fel
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1 921, 456, 561.00
' " •
" •
52,273, 733.93
23, 213,293. 53
8,947,328.82
12, 520, 745. 64
10, 610, 359.38
9, 792, 475. 51
19,177, 789.80
6,903,739.64
12. 677,160.14
6,256,916.93
16, 610, 732.34
4,301, 761.70
13, 950,343.95
9, 626, 983. 66
434,023. 56
422,065.47
357,756.45
359,242.38
331,034.76
523, 483.94
349,221.41
1, 979,499.30
2, 428, 672.65
1, 705,257.79
2,713,908.43
1, 618,137.14
1,860, 769.41
2,084,490.07
1,138, 747.31
1,141, 676.41
1,046,050.58
1,451, 550.13
1,034,903.95
1,007,206.42
1,053,302.00
226,411.71
11,510.88
32, 523.63
448.75
« 108.24
4,134. 58
2,035. 54
1,297,630.03
. 5, 240. 37
2,198, 926.05
304.69
1,928,726.00
2,690.90
1,752, 591.93
2,998.38
977,370.14
1,849.61
805,314.99
3,823. 60
956, 777.29
2,687.64
>
d
Ul
td
K|
Fiscal y e a r 1947
T o t a l fiscal y e a r
1947
Details
F e b r u a r y 1947
I. General:
Agriculture D e p a r t m e n t :
F a r m Credit Administration a n d agencies:
C r o p loans .
._
Federal F a r m Mortgage Corporation:
C a p i t a l stock
R e d u c t i o n in interest r a t e on
mortgages . -.
. .
Federal land banks:
Capitalstock-.
Paid-in surplus '
R e d u c t i o n in interest r a t e s o n
mortgages
P r o d u c t i o n credit c o r p o r a t i o n s capital stock
Other.Farmers' Home Administration:
^
F a r m e r s ' crop loans, etc
Farm tenancy . -. .
Flood loans and e r a n t s
Loans, rehabilitation and other
Production and Marketing Administration:
A d m i n i s t r a t i o n of Sugar A c t of 1937.
C o m m o d i t y Credit Corporation:
P a y m e n t to C o r p o r a t i o n for
p o s t w a r price s u p p o r t of agriculture -.
.
Restoration of capital impairment
C o n s e r v a t i o n a n d use of a g r i c u l t u r al l a n d resources
:
_
Exportation and domestic consumpt i o n of a g r i c u l t u r a l c o m m o d i t i e s . . .
Federal Crop Insurance Act:
A d m i n i s t r a t i v e expenses
F e d e r a l C r o p I n s u r a n c e Corporation—capital stock
Local A d m i n i s t r a t i o n , Sec. 388.
Agricultural Adjustment Act of 1938.
N a t i o n a l - S t a t e expenses. Sec. 392,
Agi'icultural Adjustment Act of 1938.
P a r i t y P a y m e n t s and Price Adjustm e n t A c t of 1938
Salaries a n d expenses, M a r k e t i n g
Service.
-Other
-
M a r c h 1947
A p r i l 1947
M a y 1947
$16,134.42
$9,362.86
$1.60
$116.58
» 5,000,000.00
• 4,000,000.00
« 3,000, poo. 00
"3,000,000.00
T o t a l fiscal y e a r
1946
J u n e 1947
« $5,619, 927.88
$104,953.44
•49,000,000.00
• 60, doo, QOO. 00
« 39,815, 750.00
» 36, 924, 408.39
e 39,957,850.00
o 36,924,408.39
o 77, 908, 610.00
o 37,082, 037.88
o
3,216.23
H9
6, 725.00
• 500,000.00
87, 681.70
* 3,400,000.00
185,878.42
• 3,050, 000.00
86,357.83
• 1,650,000.00
a 540, 732. 69
165, 631. 77
• 8, 600,000.00
2, 613,800. 63 .
• 7,050. 000.00
4,324,278. 71
1, 923,214. 56
1,360, 662. 62
207,332.36
« 7.86
I, 667, 715.33
12, 685, 982. 60
2, 942,248.26
25,324. 63
28,282,187.42
3, 985,236.33
536,405. 79
25,847, 302. 78
5,100,599.68
2,506,680.63
67,168,993.89
57,281,047.65
2,901, 906.95
241,316.34
6,202,343.80
248,283.42
4, 972,664. 72
253,405.40
2,009,728. 75
250,802.23
2,168,199.87
2,149,207.70
2,206,488.32
6,937, 013.16
9,682, 046. 79
14, 598,089.22
49,876, 554.02
40, 740,280. 66
29,968,082:31
330,119,101.08
262,398,849.28
23,819, 654.13
14, 945,598. 60
9, 882, 229.26
20,087,302.96
14, 489, 737.80
152, 361.16L 11
73,922,495.99
258, 547. 63
445,883.93
601,725.12
201,356.96
279,084.22
4,563,425.73
3,333,645. 59
20,000, 000.00
30,000, 000.00
I, 762,110. 79
1, 564,421. 63
1,453,42l! 62
1, 759, 730. 59
1,169,086. 51
21, 999, 505.83
28,299,638.49
918,093.18
594,089. 57
1,030,395.67
1,021,544.93
806,878.37
12,243, 338. 62
11,392,169.98
1,077.86
4, 703.28
849, 687.37
2, 653. 37
759, 580.33
3. 585. 70
o 2, 238.92
715, 975.143, 625. 79
.
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44,018,125.84
1.810.41
W
o
29,080,331. 74
20,000,000.00
fej
2 500, 000,000.00
1, 563. 288, 641.64
1641,832,080.64
679,761.27
7.017.42
td
fel
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O
td
o $2,000,000. 00
6,083.38
288,392.86
6, 916.86
740,847. 76
2,951.40
13, 663,188.30
39, 228. 77
16,428, 765.47
41,053. 69
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• Excess of credits, deduct.
1 The acts of July 20,1946, and May 26,1947, authorized the Secretary of the Treasury to cancel notes of the Corporation in the amounts of $921,456,661. and $641,832,080.64, (X)
respectively, for restoration of capital impairment.
2 Represents payment to Commodity Credit Corporation under act of February 18, 1946.
TABLE 4.—Classification of monthly and total expenditures, fiscal year 1947 and comparative totals for 1946—Continued
to
(X)
CX)
P A R T A. B U D G E T E X P E N D I T U R E S - C o n t i n u e d
Fiscal y e a r 1947
Details
J u l y 1946
I. General—Continued
Agriculture Department—Continued
R u r a l Electrification A d m i n i s t r a t i o n :
Loans
Other.
Other:
F o r e s t r o a d s a n d trails
Other
Unclassified
Bretton Woods Agreements Act:
In t e m ati on al B a n k . . ^
.
_
International Monetary F u n d
.
Commerce Department:
Civil aeronautics activities
Other
Unclassified .
Credit to United Kingdom
E x p o r t - I m p o r t B a n k of W a s h i n g t o n — c a p ital stock
.. ..
Federal Security Agency:
Social S e c u r i t y A d m i n i s t r a t i o n :
A d m i n i s t r a t i v e expenses
G r a n t s t o States (social s e c u r i t y ) . . .
Other
. .
Other
.
Unclassified
..
Federal Works Agency:
Public Buildings Administration:
Construction
Other
...
Public Roads Admuiistration
_.
Other:
B u r e a u of C o m m u n i t y F a c i l i t i e s . . .
Other
..
Unclassified
..^
A u g u s t 1946
S e p t e m b e r 1946
October 1946
N o v e m b e r 1946
D e c e m b e r 1946
J a n u a r y 1947
td
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$698, 675. 24
550,195. 83
$256,125.63
491,618.36
$241,750.14
442, 609. 66
$219,730.65
468,678.77
$310. 780. 61
645,256.05
$347, 712 23
458,541.06
$367, 765. 45
427, 727.48
2, 416, 853.12
30,197, 933. 04
« 10,488. 22
2, 638,162.37
14, 471,002. 87
« 686,975. 77
2,097, 540. 84
13, 073,140. 55
691, 424. 41
2,646,370. 69
16,333,838. 62
« 14,140. 52
2, 627, 534.39
12, 453,910.49
11,543.92
'2, 048, 871. 63
13, 237, 369. 02
« 308. 53
1, 625, 602. 42
33, 413,466. 24
2,483.03
o
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W
fel
Ul
168, 750,000. 00
fel
td
o
6, 588, 023. 86
5,374, 212 91
« 66, 647. 04
6, 612,197. 62
4,760, 734. 84
10, 514. 24
100, 000,000. 00
6,929,060.39
6, 588, 660. 08
56,132 78
200,000, 000. 00
100, 000, 000. 00
100,000, 000. 00
125,000,000. 00
2,167,939. 78
93,680,731.40
1, 208, 487. 99
41,066,708.71
835,063.06
42, 594,182 08
7,897,418. 71
« 2, 986. 86
38, 922, 070. 47
3, 262. 01
1,168,149. 27
5, 894, 212. 87
11, 876, 977. 63
1,141,829. 31
100, 648. 56
°.20
6, 830, 992. 03
5,469, 735. 47
.02
300,000, 000. 00
5,688, 039.10
6,171, 4.30. 26
« 47, Oil. 85
12,366,998.48
5, 418, 544. 25
51,440.30
6, 408,176.91
4,856 860 02
« 104.419. 99
200 000 000 00
1,010,840. 88
65, 267, 283. 58
662,912 27
60,019,443. 67
984, 913. 36
43,439,377. 71
819 978 43
63, 521,381. 91
12,344, 586. 68
« 275.16
18, 639, 797. 63
14,250,174. 52
11,889,174.02
17, 272,718. 70
42 23
4,257,235.65
5, 007, 022. 55
12, 720, 912. 28
1, 040, 364. 36
6,424, 707. 49
16,130,066. 65
873, 373. 04
6, 427, 458. 98
23,259,505.77
1, 103, 291. 77
6, 680, 086.10
18,667,974.78
1, 554,169. 41
6, 651,126. 89
23, 246, 253. 28
871,814 19
3, 805, 440.18
15, 802, 247. 03
1, 687, 255. 59
398, 512 82
4,185. 95
2,062,117. 85
79, 599.35
42,335. 04
1, 776, 250.31
816, 642 41
« 46, 729. 20
1, 436, 075. 62
« 4,071,153. 52
« 4, 483. 76
2,340,319.88
4, 334,126. 55
4, 691. 97
3.347, 563.18
o158 675 70
80.00
n.
o
.
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Ul
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td
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Fiscal y e a r 1947
T o t a l fiscal year
1947
DetaHs
. F e b r u a r y 1947
I. General—Continued
Agriculture Department—Continued
R u r a l Electrification A d m i n i s t r a t i o n :
Loans
Other..
Other:
F o r e s t r o a d s a n d trails
Other
...
Unclassified
.
'.
Bretton Woods Agreements Act:
International Bank
International Monetary F u n d .
Commerce Department:
Civil aeronautics activities
Other . . .
UnclassifiedC r e d i t to U n i t e d K i n g d o m - . .
....
E x p o r t - I m p o r t B a n k of W a s h i n g t o n — c a p ital stock
.
. ._
F e d e r a l Security A g e n c y :
Social Secm-ity A d m i n i s t r a t i o n :
A d m i n i s t r a t i v e expenses
G r a n t s to States (social s e c u r i t y ) . . .
Other
. .
Other
.Unclassified
Federal Works Agency:
Public Buildings Administration:
Construction
Other
Public Roads Administration .
Other:
B u r e a u of C o m m u n i t y Facilities
Other
Unclassified
M a r c h 1947
A p r i l 1947 -
M a y 1947
T o t a l fiscal y e a r
1946
J u n e 1947
hj
O
td
$132, 249. 58
418,834. 24
$249, 934. 01
440,409. 59
$249, 236.01
423,872. 29
..$173,577.40
429, 216. 46
$154,177. 83
663,960. 52
$3,301,714.68
5, 750, 819. 31
$7,111,812.77
4, 077,806. 70
1, 242, 292.10
10, 668,191. 03
« 2, 340. 99
1,546,114.41
12, 926, 308.45
« 632, 095. 42
1, 270,138.09
16, 398,393. 72
630,156. 64
1,445, 973. 01
16, 507, 533. 41
2, 630. 75
1, 878, 604.97
17, 503,165. 77
1, 081,825. 38
23, 483, 958. 04
207,184, 253.21
1, 073, 714. 68
9,251,023.58
160, 697, 243. 97
« 640.83
O
fel
158,760,000.00
w
84,019, 686.10
65,344, 490.33
« 403.91
2,050, 000,000.00
47, 581,071.98
60,820,609.26
Ul
325,000,000.00
674,000,000. 00
158, 750, 000.00
158, 750,000.00
950,000, 000.00
5,958,956.02
5, 365,022 06
99,911.67
100,000, 000. 00
6,966,143.96
5,317, 671. 66
79.87
200,000,000.00
6,495, 035.63
6,131, 883. 49
« 2,930.13
450,000, 000.00
6, 292,121. 91
. 6,773,104.27
a 90, 979. 45
200,000, 000.00
476, 250, 000. 00
950, 000, 000.-00
6,883,939.19
6,116, 631. 02
93, 506. 67
300, 000,000. 00
.
fel
fel
o
td
908,290.38
75,190, 684.49
223.35
19,314,336. 20
a 14,366. 63
894, 775. 49
19, 765, 646. 60
247.10
11,009, 662.19
14,314. 40
1,000, 247. 36
8,806,018.84
1, 638. 23
18, 264, 702. 86
4, 247. 38
868, 226. 88
151,324,366.11
468. 05
14, 236,167. 46
« 4,155.13
1, 063, 796. 35
39,194,567.09
1, 567.13
11,129, 772 33
« 93, 683..87
12,425,472. 23
703, 870, 291.19
4,143. 86
195,169, 571. 77
« 93, 591. 62
29,340, 740. 34
486,443, 684. 24
1,813, 208.47
4,117,379.82
9,142,155.28
1,287,337.14
4,669, 036. 62
11,866,228.49
1,294,683.81
3,471, 298. 92
11,541,043.65
1, 068,353. 89
4, 617, 743. 46
15, 236,838. 44-
1, 622,072 41
4,783,213. 39
17, 928, 653. 29
17,954,063.41
61,548,727.27
187,408, 756.47
5, 991,099. 20
60, 783,138.62
46,349,177.33
3, 797, 260. 29
6 1 ^ 930. 47
"6,054.70
5,007, 587.33
110, 682 71
1,169. 97
6, 223,871. 60
1, 236, 860. 74
- 4,810. 57
6, 841,467.01
« 400, 760. 23
6.39
9,332, 627. 58
685,063.88
2,926.16
44, 994, 226. 65
3, 543,478. 04
2, 927.19
18, 628, 538.12
10, 200.06
108,331, 931. 38
14,443. 77
o
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Ul
-H
o Excess of credits (deduct).
(X)
to
TABLE 4.—Classification of monthly and total expenditures, fiscal year 1947 and comparative totals for 1946—Continued
CO
o
P A R T A.—BUDGET E X P E N D I T U R E S - C o n t i n u e d
Fiscal y e a r 1947
Details
J u l y 1946
A u g u s t 1946
. S e p t e m b e r 1946
October 1946
N o v e m b e r 1946
D e c e m b e r 1946
J a n u a r y 1947
td
fej
hj
I.
General—Continued
Interior D e p a r t m e n t :
R e c l a m a t i o n projects
_
Other
...
Unclassified^
Justice D e p a r t m e n t
Labor Department:
U n i t e d S t a t e s E m p l o y m e n t Service
Other
Unclassified.
. National Housing Agency:
Federal Public Housing Authority:
V e t e r a n s ' housing
Other
Other
Unclassified
__ . . .
P a n a m a Canal
P o s t Office D e p a r t m e n t (deficiency):
Current year. _
_
_
_
P r i o r years
_
Railroad Retirement Board:
A c q u i s i t i o n of service a n d compensation data
Administrative expenses.
R a i l r o a d u n e m p l o y m e n t insurance adm i n i s t r a t i o n fund __.
,
Unclassified
R i v e r a n d h a r b o r w o r k a n d flood c o n t r o l . - .
State Department
Tennes.see Valley A u t h o r i t y
^ ^.
O
$13,107,188.38
12,647,304.86
$8,782,064.69
10,636,823.95
$10,209,895.65
11,194,876. 27
$10,654,154.36
10,909,358.45
6,362,534. 71
6,031,513.70
7,196,028.17
6, 748,085.14
5,462,633.31
1,832,584. 23
» 1,192.13
4,913, 589. 73
2,654,417. 53
1,192.13
13,466,144.97
2, 264,278.80
47,177. 92
10, 510,453.14
• 1,839,636.97
« 47,145.54
7,918, 598.67
2,188,141.02
« 32.30
40,317,564.07
0 721,403.85
661,527. 23
5,087.46
1,022,446.12
. 57,843,055.04
2,849,601.15
1,167, 200.11
« 7,866. 30
1,532,052. 67
43,078,718.80
56,778. 75
804, 220. 57
« 276.10
2,666,858.57
42,408,807.63
1,214,112.85
1,481,316.33
« 82.15
1,375,476.95
43,914,485.35
337,512.60
. 1,084,678.10
182.26
1,671,307.65
$9,052,704. 22
12,425,375.46
$8,847,600.01
10,974,714. 72
$8,883,743.31
10,957,471.66
8,187,524. 28
11,492,085.76
6,872,729.89
4,914.48
1,413,893.77
« 110,000.00
7,607,771.51
2,720,379.99
110,000.00
22,236,204.85
1,118,756.88
786,546.91
37.74
1,317,895.20
38,161,188.32
62,208.13
747,954. 37
2,916.10
1,440,989.69
.
O
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td
n
100,000,000.00
34,824.61
244,334.09
«2!60
216,539.89
496.619.92
497,684.91
8,771,052.17
12,341,384.42
4,962,416. 57
26,323,385. 78
7,141,515. 62
4,094,671.80
o
fel
327,997.87
259,408.93
200,088.08
470,041.56
402,876.18
218,975.00
« 19.44
24,104, 241.37
9,401,406.14
• 1,642,650.94
291,404.88
51.44
28,933,547.19
7,937,525.17
3,052,892.12
618,885.81
« 32.00
» 14,105,577.82
8,491,724.48
1,604,336.34
362,080.31
« 33,056.94
24,931,863.69
13,603,886. 20
2,166,025.50
243,984.46
33,056. 94
18,656,280.00
9,445,230. 73
2,564,948.83
W
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Ul
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td
Kj
Fiscal y e a r 1947
^
T o t a l fiscal y e a r
1947
Details
cs
F e b r u a r y 1947
M a r c h 1947
A p r i l 1947
M a y 1947
T o t a l fiscal y e a r
1946
J u n e 1947
CO
^
00
^
o
I. G e n e r a l — C o n t i n u e d
Interior D e p a r t m e n t :
Reclamation projects.
Other .
Unclassified
Justice D e p a r t m e n t
Labor Department:
U n i t e d S t a t e s E m p l o y m e n t Service
Other . ,
Unclassified
N a t i o n a l H o u s i n g Agency:
Federal Public Housing Authority:
V e t e r a n s ' housing
Other
Other....
Unclassified .
P a n a m a Canal
_
P o s t Office D e p a r t m e n t (deficiency):
Current year.
Prioryears
.
.
__
Railroad Retirement Board:
A c q u i s i t i o n of service a n d c o m p e n s a t i o n
data..
_ .
A d m i n i s t r a t i v e expenses
R a i l r o a d u n e m p l o y m e n t i n s u r a n c e administration f u n d Unclassified
R i v e r a n d h a r b o r w o r k a n d flood c o n t r o l . . .
State D e p a r t m e n t :
Tennessee Valley A u t h o r i t y
» Excess of credits (deduct).
$7,627,397.45
12,469,076.62
$9,550,424.77
10,970,350. 26
$15,117, 574. 61
11,616,342.29
« 32,503. 24
6,186,785. 92
$11,057,886. 97
10, 669,382. 75
3, 969. 21
8,614,394; 64
$10,653,393. 95
10,702, 209. 59
32,198.56
8,951, 693.85
$123, 544,028.37
136,173, 286.87
3,664. 53
101,017,415.20
$61,068,425.63
99,576,428.41
72,160,780.35
16,652,291.39
8,821,747.75
12,316,891.35
1,801,188.66
«.08
425,418.02
1,989,937.92
16,965,348.99
2,422,932. 58
84,016.00
1,212,864.59
1,882,078.50
« 162,971.88
1,897,827. 78
1,628,783. 65
78,955.88
82,701,456. 64
24,638, 253. 62
27,436,197.05
25,467.62
287,999.46
« 30. 74
1,765,909.36
16,610,698.91
1,947,170.35
153,743.16
30. 74
2,107,347.40
16,778,879.64
5,287, 549.01
308,541.84
7,314,093.46
381,417.43
273,229.81
1,429,803.85
1,567,645.87
5,911,001.96
3,590,314.71
220,950. 35
«> 569.87
1,835,605.13
361,010,895.08
16,149,485.53
7,966,808. 24
« 569.87
19,633,338.46
17, 621,930.71
« 18,292i 547.95
80,000,000.00
44,897.16
260,000, 000.00
a 18,212,826.28
160,000,000.00
672,097.61
« 2.60
4, 289,568.96
19,477. 50
2,403,964.07
4,462,779.81
18.41
222, 284,604. 56
114,705,472.03
24,826,776.48
3,458,022.67
hd
O
td
O
22,402.968.96
fel
W
80,000, oob. 00
84,314. 76
176,747.18
259, 593.09
176,008.73
1,471,619.60
528,459. 61
814,124.42
490,237.85
621,996.99
16,393,337.13
13,406,433.38
1,749,457.28
16,686,630. 23
9, 733,601.30
1,627,904.14
18,766,952.31
6,769, 307.80
, » 1,116,643.62
21, 271, 533.82
7, 212,206.65
6,477,799.64
a 520,673.35'
18.41
32, 551,358. 69
9,231,25L14
« 815,381.18
24,134,925.92
12,908,691.91
3, 271,912. 24
fel
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167, 749,569.56
61,207, 235.78
29,064,271.97
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CO
T A B L E 4.—Classification of monthly and total expenditures, fiscal year 1947 and comparative totals for 1946—Continued
PART A.—BUDGET
EXPENDITURES-Continued
bO
CO
ts3
Fiscal year 1947
Details
J u l y 1946
I. G e n e r a l — C o n t i n u e d
Treasury Department:
I n t e r e s t on t h e p u b l i c d e b t :
P u b l i c issues
.
:...
Special issues
.
R e f u n d s of taxes.and d u t i e s :
Customs
Internal revenue:
Excess profits tax refund b o n d s .
Other
.
Processing tax on farm p r o d u c t s —
UnclassifiedOther:
Coast G u a r d 3
._
Other
Unclassified
Veterans' Administration:
Benefits u n d e r Servicemen's Readjustm e n t Act
P e n s i o n s a n d compensations
Other
Unclassified-Other agencies:
E x e c u t i v e Office:
B u r e a u of t h e B u d g e t
Executive proper^.-.
Other
I n d e p e n d e n t offices a n d commissions:
Civil Service C o m m i s s i o n
General A c c o u n t i n g Offlce
I n t e r s t a t e C o m m e r c e Commission..
N a t i o n a l A d v i s o r y C o m m i t t e e for
Aeronautics
Other
Judicial
..
Legislative establishment.—
P o s t Office D e p a r t m e n t (excluding
deficiencies a n d expenditures from
postal revenues)
Unclassified
-..
A d j u s t m e n t for disbursing officers'
checks o u t s t a n d i n g
S u b t o t a l general
....
.--.
A u g u s t 1946
S e p t e m b e r 1946
October. 1946
N o v e m b e r 1946
D e c e m b e r 1946
J a n u a r y 1947
td
fel
Hd
O
$243.045. 644. 83
6,286,680.06
$121, 735, 621. 40
110,614.25
$647, 634, 250.13
267,127. 29
$159, 023, 860.83
514, 261.14
$105,191,026.80
154, 218.09
$950. 403, 950. 69
1, 946, 072. 51
r, 329, 666. 56
2,176, 390.14
1, 636,172.63
2,089,979.07
1, 429, 722.68
1, 228, 710. 32
o 5,101, 744.00
358, 634, 702.19
4,148. 60
6, 794, 094. 81
a 713, 696. 68
194,611,759.59
7,144.85
a 6, 793, 765. 65
a 2, 853, 221.12
96, 879, 439.88
a 2,168, 437. 98
109, 577, 351. 72
1, 332. 99
a 14, 728. 26
a 824, 335.14
53, 467, 324. 40
1, 726, 598. 54
a 81, 793.10
a 1, 016. 475.16
49, 693, 909.43
7, 642, 910. 77
45, 842,138. 07
361, 974. 27
11,087,472.27
33,040, 565. 42
a 1, 069, 385. 78
8, 777,198. 61
32, 931, 345. 04
1,139, 945. 23
9, 960. 025. 93
28, 455,134. 52
a 949, 927. 37
8,393,527.07
29, 015,146. 26
960, 240.37
16,815, 485. 32
38, 315, 580. 34
a 1, 383,127. 29
5, 079, 710. 70
27, 648, 012. 98
1,396,388. 89
270,314, 495. 34
126,682,861.49
70, 910, 315. 50
a 4, 528, 242.09
309, 726, 940. 80
137,279,673.06
60, 442, 906.82
4, 522, 659. 87
291, 548, 757. 22
131, 353,164.19
61, 255, 765.84
1, 504. 26
285. 579, 740.32
156. 803,-821. 21
75, 271,806. 63
a 10. 00
259, 340, 353. 39
159. 400, 952. 62
69, 358, 640.07
a 285. 00
297. 292, 271. 69
166, 479, 565. 66
96, 272, 061. 23
a 523, 229. 50
302,485,708.89
167, 063,193.32
^' 79,077,-594.19
523. 359. 50
271, 941. 39
84, 666. 90
200. 00
312, 432. 66
90, 485. 83
10, 024. 00
289, 934. 44
97, 541. 05
409, 687. 22
161, 201. 87
253, 792.11
280, 512. 98
91, 486. 30
15, 274. 22
291, 903. 27
92, 060. 22
14, 784.06
252,891.72
103,140. 59
46, 482.82
1,455, 947. 72
3, 925, 621. 45
857, 809. 83
1.389,
3.390, 483.41
979, 303.81
1,178, 533. 65
3, 372 454. 46
766, 712. 52
1, 405, 887. 97
4, 565, 566. 57
961, 363. 91
1,150, 998. 55
3, 070, 245. 92
830, 105. 71
1, 312,118.18
3, 052, 576. 02
824,188. 09
1,164, 531. 54
3, 048. 517. 41
963, 270. 95
3,439,850. 58
1, 938,117.89
1,324, 936.83
4,450, 576. 25
2, 960, 701.31
2, 853, 648.07
1, 259, 545.92
2,290, 222. 75
3, 208,
2, 280,
1, 349,
2, 023,
396. 00
943. 30
928.12
976. 30
2, 740, 479.06
2, 612, 544.02
1,553,906.09
4, 696,199. 79
2,409, 345. 73
2, 646, 767. 66
1, 356, 451". 54
2,508, 056.07
3, 274, 067. 53
2, 627, 482.46
1, 581, 541.13
6, 926, 601.92
3. 532, 558. 55
14,191, 398. 04
1, 521, 784. 37
2, 447, 419. 78
57, 389. 44
1,332, 587. 31
a 823. 23
a 5, 504, 281. 64
a 6, 779. 60
3,836, 360.38
1,188,127. 68
• 6,071.32
a 26, 466.84
a 9,152.66
776,812. 70
« 612,886. 52
17, 951. 25
615, 980. 53
18,822. 74
25, 276.35
1, 273, 918, 793. 61
1, 718, 387, 541. 63
1, 494, 326, 776.87
$235, 879, 966. 63
107, 275, 820. 37
1,018,119.37
a 565, 573. 96
68, 333, 293.10
td
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96,785.00
Ul
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1,162.11
2,693,706,316.90
607. 71
1,094,246,180.16
350.39
847. 00
2, 017, 292, 964. 52
1, 522. 923, 936.16
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Fiscal y e a r 1947
T o t a l fiscal y e a r
1947
Details
I. General—Continued
Treasury Department:
Interest on the public debt:
P u b l i c issues
Special issues
R e f u n d s of taxes a n d d u t i e s :
Customs
Internal revenue:
Excess profits tax refund b o n d s .
Other.Processing t a x on farm p r o d u c t s
Unclassified
Other:
Coast G u a r d 3
Other..
Unclassified
Veterans' Administration:
Benefits u n d e r Servicemen's Readjustment'Act
Pensions a n d compensations
Other
Unclassified
l
O t h e r agencies:
E x e c u t i v e Office:
Bureau ofthe Budget
E x e c u t i v e proper
Other
I n d e p e n d e n t offices a n d commissions:
Civil Service C o m m i s s i o n
._General A c c o u n t i n g Office
Interstate Commerce Commission..
N a t i o n a l A d v i s o r y C o m m i t t e e for
Aeronautics.
Other--..
Judicial.-Legislative e s t a b l i s h m e n t
P o s t Offlce D e p a r t m e n t (excluding
deficiencies a n d e x p e n d i t u r e s from
postal revenues)
.
"..
Unclassified
.
A d j u s t m e n t for disbursing officers'
checks o u t s t a n d i n g
P
S u b t o t a l general..
F e b r u a r y 1947
M a r c h 1947
April 1947
$123,135, 670. 55
365,181.38
$624,832, 379.31
733,843.48
$140,662, 697.81
597,465.39
$91, 271, 834. 33
794, 583. 56
1,115,090.16
1,177, 740. 80
1,344, 647.34
1,425,284.89
a 273,170.05
181, 053,177.19
a 1,008, 556. 75
593, 288, 225.12
. a 2, 094.16
a 878. 642.86
361, 579, 093. 51
• 362 68
262.02
17,174, 410. 50
26, 418, 674. 92
a 48, 964.97
11,071, 651.10
29, 658, 591.11
a 252, 763. 97
284, 786, 510. 79
169, 360, 225. 64
91, 274,175.37
193.49
T o t a l fiscal year
1946
J u n e 1947
td
$913,187, 444.09 $4; 356,004,347.40
482,872, 268. 93
601,918,136. 45
$4, 217,120,804.36
504,836,878.31.
1, 508, 738.86
17,480, 262. 82
11, 224, 891.49
a 1,094.04
a 374, 782.16'
569, 984,151. 58
17,321.74
a 25, 617. 95
a 164, 497.11
408, 814, 897. 20
362, 092. 99
26, 600. 26
a 15, 943,132. 97
3,045, 917,324.91
2,119, 002. 39
1,158.36
68, 787, 923. 94
2, 953,858,147.62
693, 506.88
a 126.36
8, 996, 245.08
31,407,185. 79
a 167, 781.80
8, 908, 632. 37
46, 541, 511. 26
6, 880.37
9, 624, 646. 88
32, 018, 557. 71
7, 332. 91
123, 531, 916. 60
401, 292,443.42
a 189.14
342, 644, 945.34
316,102, 917.17
171, 600, 720. 67
77, 208,197.86
. a 568.89
290, 957, 236. 21
211,974,861.58
91,431,846. 27
289.40
300,085, 566.84
199, 424, 947. 94
81, 002, 249. 64
a 489. 06
385, 282, 945. 48
112, 481,-426.84
85, 377, 210. 96
339. 57
3, 593, 503,444.14
1, 909, 905,414. 02
938,882, 770.38
a 4,478.45
1, 266, 600, 881.97
1, 218, 202,183. 22
386,394,371.37
4, 077.96
td
fel
249, 561. 03
104, 214.38
47, 570.34
283, 622. 74
119,621. 97
50,653.33
346, 428. 38
135, 361. 31
73, 497.12
242, 273.69
92, 521. 99
42, 600. 62
345, 092. 35
108,819. 05
31,683.29
3, 576,181.87
1, 281,121. 46
586, 561.81
2, 520, 649. 60
619, 008.60
8, 255. 94
O
fel
1,169, 058.14
3, 096, 064. 47
627,095. 40
1,192, 992. 65
2,866, 789.32
1, 024,452.16
1,440, 395.85
4, 264, 137. 25
1,017, 389.26
1,164, 901. 64
2,879, 796.96
783,136.56
1, 220, 636. 52
2, 785, 648. 00
831, 631. 24
15, 245,102.19
40, 317, 901. 24
10,466, 459. 43
13,457, 066.00
37,804, 906.83
8,378,143.44
W
2,699, 593.13
41,372, 043. 73
1,363, 865. 28
5, 949, 437.93
2, 704,020. 63
22,387, 964.42
1, 488, 442. 52
2, 081,345. 28
2,475, 704. 77
29,236, 977. 24
1,623, 291.81
734, 290. 58
2, 421,462.81
22, 984, 077. 71
1, 424, 963. 03
1, 633,479. 60
2, 705,800.82
60, 991, 470. 90
1,475, 315.83
4, 956, 565.92
34, 571, 980.82
196,123,435. 44
17,323, 961.47
39, 698,172.07
31,165, 428.85
37,060, 094.24
14.814, 987. 34
22.815, 830. 23
»19, 900. 06
a 8. 92
841, 608.17
a 53,181. 63
920, 210. 56
a 58, 566.66
41, 226. 65
111, 930.39
29,108. 61
»100,192. 20
3,818, 465. 33
a 435,330. 30
8, 598, 026.95
a 640, 871.19
1, 053. 33
50, 639.47
77, 449.16
3, 058, 683, 789. 65 24, 322,825,148.07
14, 558, 510, 998. 06
1, 2 9 6 . 6 /
2,473,340,104.36
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Q
120.31
617. 99
184; 13
2,063,367, 796. 73
2, 206,142,143.47
2, 706,488,804.11
a Excess of credits ( d e d u c t ) .
3 E x p e n d i t u r e s d u r i n g t h e fiscal year 1946 w e r e i n c l u d e d u n d e r N a v y D e p a r t m e n t .
M a y 1947
fej
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CO
oo
T A B L E 4.—Classification of monthly and total expenditures, fiscal year 1947 and comparative Jtotals for 1946—Continued
CO
•1^
PART A. BUDGET EXPENDITURES-Continued
Fiscal year 1947
Details
J u l y 1946
I I . N a t i o n a l defense a n d related activities: *
Agriculture Department *
1
Navy Department:
A r m e d Forces L e a v e Act of 1946:«
B o n d s issued
Cash payments
Other
Unclassified
P a y m e n t s for U n i t e d N a t i o n s relief a n d
rehabilitation:
Agriculture D e p a r t m e n t
._..
Navy Department
State Department—Foreign Economic
functions ^
_
Treasury Department-.
...U n i t e d States M a r i t i m e C o m m i s s i o n . . .
War Department
W a r S h i p p i n g A d m i n i s t r a t i o n 8_._ .___
Other
^
. . .
Unclassified
.
_
Selective.Service ( a d m i n i s t r a t i v e e x p e n s e s ) ^
S u r p l u s p r o p e r t y disposal agencies
Treasury Department: 5
A r m e d Forces L e a v e Act of 1946 (Coast
Guard): 6
B o n d s issued
. _
Cash payments
.
. Other
.
Unclassified
U n i t e d S t a t e s M a r i t i m e Commission
War Department:«
A r m e d Forces L e a v e A c t of 1946:6
B o n d s issued
Cash payments .
Other
W a r Shipping Administration s
A u g u s t 1946
S e p t e m b e r 1946
October 1946
N o v e m b e r 1946
D e c e m b e r 1946
J a n u a r y 1947
$4,414, 572. 67
$3,400,087.36
$3,199,438. 74
$4,774,896.66
o $38,663,458. 66
• $98,093,953.02
519, 207,701. 00
651, 067,323. 24
5, 205. 04
499, 588,707. 20
a 13,463,265. 24
22,302,025.00
296,344.70
472, 597,802 17
12, 654, 464. 69
101,096,350. 00
3,099,862 84
313,666,399. 96
814, 446.43
117,499,800. 00
8,824,441.03
418, 555,614.01
•a8,47L60'
105, 748,725.00
6,341,135. 78
353,131,352.89
2,850. 24
83, 959,631. 66
80,069,339.36
55,721. 250. 44
101,200,8n. 63
48,882, 856.83
15,016,306.84
2,826,401. 78
24, 739, 679.67
4,001, 209. 87
6,450,000.00
10,090,865. 63
37,300, 000.00
10,840,269.38
5, 700,000. 00
12. 067,081.41
32,402,138. 56
25,516,250.00
19,184, 060. 66
39,945,401. 39
5, 203,399. 76
4,866,185.14
15,042,896. 76
12,131, 926.01
14,871,315.85
28,391,088. 83
30, 291, 557. 72
63,036,354.15
. 5, 582,427. 04
a 25,000. 00
3, 538,717. 97
26,849,739. 65
40, 535, 244.43
65,660.18
25, 000. 00
3,111,424.80
22,974,483. 26
23.067,451.98
18,945, 452.13
15,355, 514.88
11,639,100.00
1,709,899. 48
16L00
3, 683, 669. 06
28, 584,983.01
7, 218,329. 23
a 234. 23
3, 403,346. 42
26,294,200.81
6,096, 678. 08
73.23
3, 263,488. 45
24,148,120. 23
46,281. 40
a 36,894. 75
2, 560,283. 99
40,184, 989.83
3, 889,006. 06
36, 894.76
2,261, 597.33
44,987, 048. 51
• 1,139,400.00
64, 702 00
16,887,800. 00"
a 313. 52
22,189,973. 27
1,390, 050.00
103,176.13
9,642, 668: 44
. 474.52
37,875, 434.07
5, 600,400. 00
235,110.82
4, 200, 779. 63
27,672,009. 59
6,153.375.00
236,717. 68
5,116,081. 66
a 4, 750.00
a 105, 541.15
46,821, 775.00
6, 562, 511. 00
616,756,811.63
137,876,150.00
2, 088, 042. 00
669, 283, 943. 77
170, 254,775. 00
18, 769,347. 00
665,030,007. 89
165,603,300.00
13 500 186.00
643,840,693. 46
$11,631,105.59
'
td
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29,121, 381. 64
34, 648, 033. 84
3, 646, 061. 04
a 2, 725,801. 83
300,055, 797. 84
34, 212,480. 28
17,479.00
674,959,488.13
39, 781, 796. 78
430. 60
6,867,168. 76
a 161.00
17, 609, 204. 79
1,960,874. 00
384,318,668. 36
td
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>
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d
. F i s c a l y e a r 1947
F e b r u a r y 1947
I I . N a t i o n a l , defense a n d related activities: *
Agriculture Department ^
N a v y Department:.
A r m e d Forces L e a v e A c t of 1946:6
B o n d s issued
_Cash payments. Other
-.Unclassified
.
. .. .
P a y m e n t s for U n i t e d N a t i o n s relief a n d rehabilitation:
Agriculture D e p a r t m e n t
Navy Department
State Department—Foreign Economic
funotions ^
Treasury Department
United States Maritime C o m m i s s i o n . . .
War Department
..
War Shipping Admuiistration 8
___
Other...
Unclassified
_.
Selective Service ( a d m i n i s t r a t i v e expenses) ^S u r p l u s p r o p e r t y disposal agencies
Treasury Department: *
A r m e d Forces L e a v e A c t of 1946 (Coast
Guard): 6
B o n d s issued _
. . . . .
._
Cash payments
Other
.
Unclassified
......
United States Maritime Commission
War Department: e
A r m e d Forces L e a v e Act of 1946:«
B o n d s issued..
. .
Cash payments
Other .
-.
W a r Shipping Administration 8
M a r c h 1947
M a y 1947
J u n e 1947
$1,893,415.49
$12, 679,162.74
a $38,405,193.74
69,187,125.00
6,788,305. 24
362, 569, 622.12
a 11, 762, 323. 26
49, 660,000.00
4, 943, 488. 73
352, 251.839. 85
6,920, 060.18
42, 668, 725.00
4,499,311.80
409,865, 342. 98
4,846,041.43
18,741,175.00
1,645,397.61
364,289,805. 71
a 2, 068,, 615. 22
12,390, 625. 00
1, 880, 051. 51
380,832, 217. 97
2, 062, 638.80
539,294, 550.00
38,323, 544. 28
4, 997, 623,729.10
a 2,183. 55
21, 414,835. 64
5, 671, 758. 93
605, 724.48
2,451,307. 43
16,327, 947.99
2, 540,113.10
51,858, 765.10
a , 537,104.80
65,963, 263. 66
2, 992, 468.94
28,880,203.31
29, 525,461. 89
14,725, 079. 62
2,665,508.46
6,412,878. 32
28,107,297.95
14,166,342 38
217,539.91
7,643, 062. 31
41,964, 040.82
20, 598,084.08
100,000,000. 00
4, 772,933.84
32, 989, 604.88
9, 776,925.93
a 85,151. 65
12,696, 854.42
25,092, 958.75
23, 340, 747. 54
4,346,845.81
•26, 534. 00"
a 481. 56
2,118,946.93
33,874, 952.47
20, 671. 38
481. 56
2, 049,416.02
35,043, 613. 65
19, 478. 77
1, 782. 99
2, 033,196. 59
44, 989, 770. 50
a 2, 538, 218. 20
a 1,782. 99
3,149. 843.17
50,897, 738.10
2,610, 926. 79
63, 281,274.92
a $26,914, 934.31 aio $174,416,470.76
10 $1,041,498,531.34
15,160, 754, 034. 26
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22,020,364. 85
375,085,847. 78
3 658,344.86
o
178,177,135.17
272, 241, 069. 09
212, 733, 718.11
123,887,242 29
103, 571, 598. 58
22,159, 541.37
127,084,347.00
109,881,828. 97
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62, 921, 059.41
a 14,409,501.07
70.84
52,167,785.19
105,880,330. 82
33,784, 866. 52
442,110,914.84
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4,121, 550.00
308,136.49
19, 722,118. 64
4, 750.00
46, 634, 598. 36
8,325,350.00
691,171. 24
11,809, 249.35
a 104. 83
7,438,642.15
4, 277,076. 00
281,417. 65
a 9,045, 420. 71
a 904. 27
31,127, 349.82
656, 975. 00
102, 765.14
a 3,195,336.19
869. 50
29,897,061. 29
810,600. 00
77, 709.03
a 896, 420. 90
139. 60
50,170, 316. 69
195,437, 625. 00
15,648,065.00
574,329,499. 94
245,463, 525. 00
17, 611, 597. 00
610, 995, 078.15
220,417,400.00
16,482, 669.00
736, 298,123.10
71, 576, 250. 00
4,328, 291. 00
706,961,019.02
21,687,376.00
2,026, 200. 00
843,737,187.88
32,473, 775.00
2,001,336. 78
123,767, 993.96
695,400,104.49
271,329, 298." 09
693,666, 052. 72
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a Excess Of credits (deduct).
4 Additional expenditures attributable to national defense and related activities, payable
from funds which have supplemented regular appropriations of the civil establishment, are
included under " I . General" above. Also, with the transition, from war to peace, certain
war-related expenditures formerly classified as war and defense activities in Daily Statements of the United States Treasury, principally Coast Guard, which was a part of the
Navy, and U. S. Employment Service, whose functions were exercised by the War Manpower Commission during the war years, are shown as general expenditures commencing
J u l y l . 1946.
fi Additional expenditures included in corresponding captions under " I . General" above.
6 Administrative expenses in carrying out provisions of act are included under "Other."
7 Includes expenditures made by Foreign Economic Adininistration prior to January 1,1946.
8 Effective September 1,1946, expenditures of the War Shipping Administration are included with the expenditures of the United States Maritime Commission to which all
A p r i l 1947 .
a $14,231,610. 09
32, 793.95
T o t a l fiscal y e a r
T o t a l fiscal y e a r
1947
Details
1, 275,138,175.00
. 98,995,26L00
7,424, 666,319.16
73,994,277.06
fel
27, 799,828, 764. 72
1, 366,701, 205. 64
functions were transferred for the purposes of liquidation by December 31,1946, pursuant
to sec. 202, Public Law 492, approved July 8,1946.
9 Expenditures for "Selective Service (administrative expenses)," separately classified
in this table are included under the classification "War Department'^ on page 2 of the
Daily Statement of the United States Treasury.
10 Payments of $17,875,601.67 have been made during the fiscal year 1947 through June 30
by the Agriculture Department (charged as national defense and related activities) to the
Commodity Credit Corporation in reimbursement for agricultural commodities procured
in connection with the lend-lease program and reflected in previous expenditures of the
Commodity Credit Corporation. Similar payments during tne fiscal year 1946 amounted
to $956,509,389.28. $230,388,000 of these payments were repaid by the Commodity Credit
Corporation during the fiscal year 1947 through June to lend-lease funds pf the Agriculture
Department.
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TABLE 4.—Classification of monthly and total expenditures, fiscal year 1947 and comparative totals for 1946—Continued
CO
PART A. B U D G E T E X P E N D I T U R E S - C o n t i n u e d
Fiscal year 1947
Details
J u l y 1946
I I . N a t i o n a l defense a n d r e l a t e d activities *—Con.
Other:
Aid to China
. .
C o m m e r c e D e p a r t m e n t 5_._
E x e c u t i v e Office:
Office for E m e r g e n c y M a n a g e m e n t .
Others..
—
Federal Security Agency: 6
Office of E d u c a t i o n . .
Other .
Federal Works Agency:« .
Public Roads Administration
P u b l i c W o r k s ( c o m m u n i t y facilities)
Other
^
Justice D e p a r t m e n t 5 .
Natiohal Housuig Agency ^
Office of W a r M o b i l i z a t i o n a n d Reconversion
PanamaCanal'
.
Smaller W a r P l a n t s Corporation—capit a l stock
.--.
1
Other . .
- .
Unclassified
S u b t o t a l n a t i o n a l defense a n d rel a t e d activities
A u g u s t 1946
S e p t e m b e r 1946
October 1946
N o v e m b e r 1946
D e c e m b e r 1946
J a n u a r y 1947
td
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$2,570,800.63
$928,693. 32
$1,788,992.25
$1,829, 729. 24
$1,881,612.12
$1,598,811.47
$3,112,591.18
7,079,353. 84
11,583,433.65
2,831,727.43
11,745,996.-22
1,467,676. 62
9,955, 258.46
2,576,530.15
12,332,573. 25
13,907,886.93
11,351,911.83
15,163,.093. 04
528,006. 47
15,282,624.21
34,522. 83
. a 13, 684.12
1,887,107. 39
a 34,856.13
3,654,139. 7.4
a 9,857.18
1,798,437.06
2, 669. 60
587,844. 80
a 2, 646.81
1, 614, 742. 54
a 40,362. 48
1,181,357.60
a 10,467.04
666,096. 56
4,803,527. 24
2,190,939. 66
378, 515. 49
2,684,833.65
4,050,191. 56
2,842,661.04
. 2,078,144.03
236,559. 30
2,872,117. 86
' 3,507,998.04
2,204,135.54
1,452,103.34
a 508,839.99
2, 626,171. 27
3,108,860.05
2,783,326.12
913,871. 43
242,954.11
2,965,094. 43
4,099,774.02
2,101, 222 82
1,578,383.-79
69.092.75
2,968,419. 51
28,105,071.18
2,526,975.39
1, 260,122. 60
a 4,859,567. 86
3,869,024.46
5,367,668. 63
1,984,533. 98
974.831. 66
a 492,914.57
2,928,195.06
32,913,321.12
171,860.41
212,192. 86
22,556.94
296, 600. 23
175,595. 55
129,670.39
86, 594.16
283, 598. 50
157, 591. 85
217,719. 48
67,698. 47
283,722. 98
441. 50
166,803. 74
64,843,931.54
a 102, 610.91
a 18,993,094.07
441,349.68
37,388.489.17
a 276, 602. 73
3,021,652 19
1,020,768. 32
1,874,039. 38
a 25,554,.450. 24
« 3,984, 512 80
24,642,159.38
3,679, 642.86
90,311.15
1,189,597,556.18
1,509,404,896.77
1,100,446,182.63
1,481,185,269.67
1,436,414,616. 58
1,579,625,883.46
1,411,623, 662.85
.
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Fiscal y e a r 1947
.
T o t a l fiscal y e a r
1947
Details
F e b r u a r y 1947
I I . N a t i o n a l defense a n d r e l a t e d activities«—Con.
Other:
Aid to China---Commerce Department«
E x e c u t i v e Office:
Office for E m e r g e n c y M a n a g e m e n t Other «
.
.
Federal Security Agency:«
Office of E d u c a t i o n
Other.
.
...-Federal Works Agency:«
Public Roads Administration
P u b l i c W o r k s ( c o m m u n i t y facilities)
Other
Justice D e p a r t m e n t 5.
National Housing Agency *
_ .
Office of W a r M o b i l i z a t i o n a n d Reconversion
P a n a m a Canal *
Smaller W a r P l a n t s Corporation—capital stock
......
Other...
Unclassified . . .
S u b t o t a l n a t i o n a l defense a n d rel a t e d activities
M a r c h 1947
A p r i l 1947
M a y 1947
T o t a l fiscal y e a r
1946
J u n e 1947
$572,223. 84
$774,717.65
$1,251,978.42
$996,533. 67
$1,091, 259. 47
$18,397,943.26
$119, 593,843. 39
26,255,126.93
13, 704,079. 66
23,517. 33
9, 944,566.58
39,883.30
10,396, 753.12
51, 235. 42
10,030,837.56
59,768.03
8,097, 215.14
52,841.11
110,482,344. 28
57, 758,947. 90
197,285, 407. 30
172,384,313. 78
a 10,836.97
932,093. 22
1,595.59
1,443,327. 42
2,769. 20
652,24219
169,793. 96
894,992. 73
1,910.70
1,182,409.54
56,028. 32
16,394. 790. 79
a 1,019,089. 43
60,786,007. 43
879,650. 82
829,318.31
57,945. 61
1,433,465.02
3,806, 495.37
2,007,874.18
1, 259,048. 60
261, 662. 84
2,754,202. 60
4, 240,078. 44
2,367,450- 33
1,591,208.49
698,741.74
1,032,589-52
3,004,373.82
1,259,033. 70
1,079,030. 28
646, 817. 00
2,018,953.10
2,981,935.03
26,713,345.72
16,105,070-10
a 3,065,438. 01
25,231,780-65
99,303,600. 07
29,051, 270.-01
57,020,939.92
5,107,330 41
32, 290, 675.31
79,784,107.95
406- 40
180, 614.39
682,870- 49
2,578, 695- 61
2,909,360-16
1, 568, 776 22
847, 645. 36
168, 661. 43
91, 314,992. 65
201,086- 61
9,327,530 41
167,188,301-77
2, 032 466.14
1,493,413,158.12 17,141, 692,417- 58
48,541,675,174 67
952,954. 66
898,067. 91
203, 595. 57
a 2,921, 285. 83
4,117,832 81
. 118.96
112, 715. 73
178,813.29
315, 706.17
- 6-25
200,537. 85
1,084,933.51
a 150,314. 29
2,978,368.64
a 599, 547. 75
4,905,266.08
500, 474. 44
3,668,630-79
120,888-13
1,456,985,001. 96
1,427,652,954.47
1,728,083.016.15
1,327,260,218.74
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a Excess of credits (deduct).
* See footnote 4, p. 295.
«See footnote 5, p. 295.
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TABLE
4.-
- Classification of monthly and total expenditures, fiscal year 1947 and comparative totals for 1946- -Continued
PART A. BUDGET EXPENDITURES-Continued
^
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(X)
Fiscal year 1947
Details
J u l y 1946
I I I . Transfers to t r u s t accounts, etc.:
E m p l o y e e s r e t i r e m e n t funds ( U n i t e d S t a t e s
share):
Alaska R a i l r o a d r e t i r e m e n t fund
$217,000.00
C a n a l Zone r e t i r e m e n t fund
1,177,000.00
Civil Service r e t i r e m e n t fund . ..
220,100,000.00
Foreign service r e t i r e m e n t fund
1, 051, 000. 00
N a t i o n a l service life i n s u r a n c e f u n d .
. 225,761,116.78
Railroad r e t i r e m e n t a c c o u n t
- 166,233,000. 00
Other:
F e d e r a l c o n t r i b u t i o n to . D i s t r i c t of
Columbia
.
. . -8.000,000. 00
R a i l r o a d u n e m p l o y m e n t insurance a d m i n i s t r a t i o n f u n d transfers t o u n e m 9, 214, 985.00
p l o y m e n t t r u s t fund (act Oct. 10,1940)
S u r p l u s c o m m o d i t y s t a m p s , AgricultureS u b t o t a l transfers to t r u s t accounts,
etc
--.:
T o t a l , excluding corporations a n d
statutory debt retirements
A u g u s t 1946
S e p t e m b e r 1946
October 1946
N o v e m b e r 1946
D e c e m b e r 1946
J a n u a r y 1947
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$13,150,363.53
$32,276, 369.63
$3, 640, 945. 51
44,000,000.00
$26, 669,631.69
$20,692,438.68
$26, 716,997. 46
44,000,000.00
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13,150, 363. 53
32,276,369. 63
47,640,946. 51
26,669,631. 69
20, 692,438.68
70, 716, 997.46
4, 514. 047. 974.86
2, 796,474, 053.91
2,851,110,093. 89
3. 023,152, 992.05
2, 557, 320,428.43
3,617, 611,286 66
3, 005,264, 596.47
145,131,684.11
a 15,128,186. 41
11,245,5.35-38
2,176, 879. 05
a 21, 898.1,50. 65
53,525,921.63
a 29, 735, 869-14
a 2. 782, 637. 86
1,360.830.84 1
a 15, 914. 986. 59
13,175, 748.08
a 54, 073, 091. 93
a 1, 924, 211. 29
405.268.08
o 17,859,843. 47
a 52, 324, 673- 25
52,957, 769. 58
3, 525. 438. 45
a 241, 665. 90
a 15.929,851. 50
128,484, 086.89
106,855.186. 73
0 1,561.710.95
3, 983,178. 59
a 15.452,858.13
64,096,565.49
a 33, 725,199.99
a 2,100, 016. 68
a 3, 776, 726.60
a l i o , 126,011.48
7.404,12,5.98 '
1,756,497.34
a 1,614, 246. 96
3.315.041.07
7,762,990.75
2, 916. 111. 69
a 12, 367,136.05
a 17, 575,185. 31
20, 535. 225. 20
a 1, 645,293. 25
a 17,420, 654. 78
a 193,643, 010.63
26, 333, 715. 74
• 5. 651. 26
a 10,28
@FedFRASER